1 Report # 94 BUSINESS AND POLITICS IN

Transcription

Report # 94
BUSINESS AND POLITICS IN THE MUSLIM WORLD
East Asia, Central Asia, GCC, FC, China & Turkey
Nadia Tasleem
Weekly Report from 14 November 2009 to 20 November 2009
Presentation: 25 November 2009
This report is based on the review of news items focusing on political, economic, social
and geo-strategic developments in various regions namely; East Asia, Central Asia, GCC,
FC, China and Turkey from 14 November 2009 to 20 November 2009 as have been
collected by interns.
EAST ASIA
Political Front:
PHILIPPINES has announced to hold Presidential elections in May 2010. Process of
nominations would start next week. Surveys are being carried to find out expected
results. A rally has been launched by thousand of people in THAILAND against antimonarch remarks being recently made by Thaksin in his interview with ‘British Times’.
Though he didn’t give any negative remarks about ruling King but blamed people
surrounding him; yet his remarks have been manipulated.
Social Front:
INDONESIA and MALAYSIA intend to establish a joint task force in order to handle
troubled Indonesian workers working in Malaysia. Five million patients of Aids in 300
cities and districts of Indonesia have been reported by health experts.
Economic Front:
INDONESIA and PAKISTAN have made plans to boost their economic ties via trade.
The Asian Development Bank continues to provide financial assistance to Indonesia for
economic reforms. MALAYSIA expects substantive increase in its GDP by 2012. THAI
PM has declared political challenges, rising inflation and environmental issues to be the
major obstacles in the way of economic reforms. Despite the fact that THAILAND and
VIETNAM are major rice exporters yet none of them consider other to be a threat.
CENTRAL ASIA
Political Front:
Opposition party in AZERBAIJAN has regarded lack of resources to be the main hurdle
in the way of their media campaign for upcoming municipal elections. All the while they
have nominated almost 700 candidates for 635 municipalities. KAZAKH Upper house of
Parliament has approved a bill introducing tougher punishment for invasion of privacy in
a move condemned by the opposition as an attack on press freedom. Kazakh President
announced that courts can’t still be regarded as a strong ‘pillar of law and justice’ yet one
can have high expectations from judiciary because of the reforms being brought in this
sector. New representative of the KYRGYZ PM to the parliament has recently been
named.
Geo-strategic Front:
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AZERBAIJANI President has accused Armenia of delaying efforts to resolve the conflict
over the disputed territory of Nagorno-Karabakh. At the same time Azeri
Parliamentarians have requested NATO to implement UN resolutions on Karabakh.
Meanwhile Azerbaijan has blamed Germany and Norway over their interference in
bloggers' case who has been recently detained in Azerbaijan. A Russian human rights
activist has recently been deported from KYRGYZSTAN while gathering information
connected with his work. TAJIK President has recently attended inauguration of Hamid
Karzai in Kabul. The US Deputy Assistant Secretary for South and Central Asian Affairs
has recently paid visit to UZBEKISTAN in order to hold talks with high Uzbek officials.
Social Front:
OSCE has launched implementation of Civic Action for Security and Environment
Programme in AZERBAIJAN. The imprisoned director of the KAZAKH Bureau for
Human Rights has been denied access to his lawyer; rising rage of human rights activists.
Meanwhile growing number of Kazakh students in the US also grabbed attention.
KYRGYZSTAN'S dominant, pro-presidential Ak-Jol (Bright Path) party has approved a
provision that would require its diplomats to understand the Kyrgyz language. Human
Rights Watch (HRW) has urged the government of Kyrgyzstan to release two human
rights activists. Kyrgyzstan was ranked 162nd in Transparency International's Corruption
Perception Index (CPI) which was released in last week.
Economic Front:
AZERBAIJAN seems keen for the Nabucco pipeline project as it would connect her with
Germany across Europe. Russia has also welcomed Azerbaijan’s participation in South
Stream projects. Meanwhile talks about US-Azeri energy cooperation have started and
the US has also declared Azerbaijan to be the most important energy producing country
in the Caspian region for the West. President of KAZAKHSTAN has clearly announced
that his government would not allow foreign investors to get hold of all important Kazakh
Banks; despite the fact that investors bring substantive benefits for the country’s
economy. As far as energy sector is concerned Kazakh Parliament has expressed serious
reservations regarding gas and oil supply to China. TAJIK President has signed annual
economic budget for 2010. 70 percent of Tajikistan’s water supply infrastructure has
become obsolete and requires serious repairs. All the while Tajikistan has some how
managed to resolve Teachers’ shortage problem.
GCC
A high rank Swiss military officer has expressed keenness to establish good relations
with the member countries of the Arab Gulf Cooperation Council (GCC) as part of the
mutual exchange of expertise between the Swiss army and world countries. GCC
Secretary General Abdul Rahman Al-Attiyah has strongly condemned Israel's decision of
building 900 settlements in Jerusalem as it would violate international law and damage
the efforts towards Middle East Peace process. SAUDI ARABIA and the United States
have discussed prospects of expanding military cooperation during a strategic meeting of
their high officials. Meanwhile SAUDI King and French President Sarkozy also held
meeting and discussed the prospects of Middle East peace process during Sarkozy’s visit
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to the Kingdom. The Iranian president's media advisor Ali Akbar Javanfekr welcomed
the visit of His Highness the Prime Minister of Kuwait Sheikh to Iran.
Social Front:
This year a sharp decline of almost 70% would be observed in the number of local
pilgrims because of the threat of Swine flu. 20 swine flu victims have already been found
among pilgrims so far. BAHRAIN also expects new wave of Swine flu.
Economic Front:
Member countries of GCC are looking forward for upcoming GCC Summit as it is
expected to launch the unified Gulf currency.
FERTILE CRESCENT
Political Front:
IRAQ'S general election in January was thrown into doubt when the presidential council
demanded a greater say for minorities and nationals living abroad. In the meantime Iraq’s
Kurds threatened to boycott national elections, days after the country’s Sunni vice
president threatened to veto the newly passed election law needed to hold the January
vote. Current political crisis has devalued the recently passed Election law that had been
welcomed by all political groups. LEBANON’S new national-unity Cabinet has claimed
that the March 14 and March 8 political camps have retreated from the tactics of
confrontation which led the country to the brink of civil war in May 2008. Meanwhile it
is expected that Prime Minister Saad Hariri’s government would almost certainly not
alter the status quo on the most divisive issues such as Hezbollah’s possession of arms or
the UN Special Tribunal for Lebanon, but it would likely lead the rival factions to
abandon the trench-warfare dynamic that has dominated the domestic political scene
since late 2006. Islamic Resistance Movement, Hamas, has clearly stated that declaring a
PALESTINIAN State should not be conducted before ending the ISRAELI occupation
and all such moves being taken in history have been discarded by Hamas.
Russia's plan to supply LEBANON with 10 MiG-29 fighter jets would soon enter its final
phase.
Social Front:
Diabetes has been regarded as potent social issue being faced by JORDAN.
Economic Front:
EGYPT’S Industrial Development Authority (IDA) has declared substantive progress in
establishing a large-scale industrial project in Cairo.
TURKEY
Political Front:
TURKISH Prime Minister Erdogan informed parliamentarians about the government's
democratic move process and its content in the parliamentary general assembly which
convened to debate "Democratic Move" in Ankara. He claimed that this process has been
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initiated in order to solve all problems in Turkey and to facilitate democracy in all fields.
Meanwhile the chairman of the Democratic Society Party (DTP) of Turkey proposed
establishment of a parliament committee regarding the government's democratic move. In
response to all that chairman of the Nationalist Movement Party (MHP), said that Justice
& Development (AK) Party government gave up fighting against terrorism and started to
negotiate with it. Despite strong objection by opposition the government has announced
to establish a human rights institution and a commission on combating discrimination and
strengthen legal measures to combat hate crimes. People of Kirkuk region have
welcomed government’s move.
The mayoral election in Yusufça, a town in Burdur’s Gölhisar district, has resulted in the
victory of Yılmaz Akkaş, the Justice and Development Party (AK Party) candidate, who
received 587 of 1,310 votes and took the post for the third time. The election was viewed
as a report card of the government’s performance in the last eight months following the
most recent local elections and was also seen as a litmus test of people’s response to the
government’s democratic initiative.
Col. Dursun Çiçek, who has recently been arrested for drafting an action plan to destroy
the ruling party, was interrogated by civilian prosecutors about the members of the
military who gave him the order to prepare the plan. He however denied knowledge of
the action plan and responsibility for the signature on the document. This anti-democracy
plot has seriously damaged people's trust in Turkish military. Later on, accused Colonel
was released less than two days after his arrest on charges of membership in Ergenekon.
This has been strongly condemned by the jurists.
Turkey has expressed its readiness to store low-enriched uranium from Iran and assured
that there would be no technical obstacles in the way of such storage. Ahmadinejad has
appreciated Turkey’s role regarding Iran’s nuclear program. Meanwhile growing Turkish
ties with Spain, Italy, Egypt, Russia and Iraq remained significant. Turkey has also
welcomed Kosovo’s first elections and has strong condemned Israeli aggression.
Social Front:
The number of women who wear the headscarf has increased from 64.2 percent to 69.4
percent in the last four years under the Justice and Development Party (AK Party)
administration and the percentage of women who wear the “turban,” a more conservative
way of covering the head, has increased from 3.5 percent to 16.3 percent. Meanwhile
many people claim that Turkish education has also become more religious taking Turkey
to the Arab path. Besides all that number of swine flu has crossed 73 and government
seems keen to take various measures to stop its spread.
Economic Front:
Growing unemployment seems to be a serious concern for Turkish government.
Meanwhile Turkey has been putting efforts to boost ties with various countries.
CHINA
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Mainland CHINA has expressed keenness to enhance economic cooperation with
Taiwan. Meanwhile Chinese growing ties with Sudan, Philippines, Vietnam, Syria, Japan
and Africa grabbed attention. China has also expressed serious concern regarding Israeli
aggression in Palestine. Above all US President’s visit to China dominated the geostrategic front this week. Obama seem to be cautious as his visit has been considered as
very critical and significant. Public within the US observed sharp divide over this issue.
Analysts view his visit as new beginning of the US-China relations. As a firs step Obama
addressed Chinese youth and called China to be a strong, developed nation. While talking
to media Obama stressed greatly on the need of joint US-China cooperation to confront
various global challenges being faced by the globe.
Economic Front:
The visit by Barack Obama has been well received by US businesses in China who
believe the official tour will bring those benefits. Meanwhile the Chi Next Index fell by
the end of the week as 19 out of the 28 shares at China's start-up board for small and
medium-sized enterprises were down. While evaluating Chinese economy one can easily
find remarkable boost in that after passing through global economic crisis. The gross
domestic product (GDP) of China's western regions rose 12.5 percent in the first nine
months from a year earlier
Social Front:
Widely spread swine flu has become a serious source of concern for CHINA like many
other countries as death toll suffering from the virus has crossed 53 over there.
Report No.
Business and Politics in Muslim World
South East Asia
Tatheer Zahra Sherazi
7 November to 13 November 2009
(Outline)
Summary
Indonesia
•
•
4
Political front:
Foreign relations
6
5
• Malaysia And Indonesia Set To Enhance Bilateral Ties
• Geo-strategic Front
7
• Indonesian leader to outline 'strategic partnership' with US
• Economic Front
8
• Indonesia's economic growth to reach 8% by 2014: minister
• Indonesian president outlines road to recovery at APEC meeting
• Social front
Malaysia
• Political Front
9
• Anwar Admits Crisis Exists In Opposition Pact
• Economic Front
9
• Halal Industry Moving Beyond Religion And Borders
• Najib: We want best trade deal
• Social Front
11
• 90 Per Cent Of Malaysian Pilgrims Arrive In Mecca
Philippine
• Political Front
• Geo-Strategic Front
12
• US pushing for increased military aid to Philippines
• Clinton in Manila, defends military ties
• Economic Front
• Social Front
14
• 23 killed in Philippines communist attack
• Environmental front
15
• Major Asian cities face climate disaster: WWF
Thailand
• Political Front .
16
• Abhisit's govt needs to redefine the national interest
• Thai tensions rise over Cambodian role
• Former Thai PM Thaksin arrives in Cambodia
20
• Thailand not sealing Cambodia border yet
• Foreign Relations
21
• Cancel other pacts, financial aid projects to Cambodia, PAD urges
• Economic Front
Singapore
• Political Front
22
• S'pore, Indonesia to hold retreat in six months to review bilateral relations
• APEC and ASEAN concerned over spat between Cambodia and Thailand
• Economic Front
23
• PM Lee urges APEC members to re-commit to goals of free trade
• US must boost trade ties with Asia to remain competitive in world economy
• ABAC says financial regulation needed after global economic recovery
6
•
•
Global business leaders stay cautious as unemployment remains high
APEC finance ministers say world economies must find new sources of
demand
Environmental Front
•
Vietnam
• Political Front
• Economic Front
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• Vietnam plans to build rice depot to cut losses: report
• PetroVietnam to look for oil in Cambodia
• Vietnam to stockpile fertilizer to ensure sufficient supply
• Vietnam Lifts Ban On Gold Imports To Stabilise Domestic Market
• Social Front
30
• Death toll from A/H1N1 influenza rise to 41 in Vietnam
• Food and shelter needed in Vietnam after floods wash away crops and homes
• Environmental Front
Cambodia
• Political Front
31
• Thaksin departs Kingdom
•
•
•
•
•
•
•
Geo-Strategic Front
Diplomats expelled in row over Thaksin
POLITICS: Cambodia Raises Stakes, Ties with Thailand Plummet
Economic Front
Cambodia gets further boost from APEC poll
Social Front
Progress against HIV at risk
•
•
•
•
•
•
•
•
Political Front
Foreign Relations
Laos, Japan hold bilateral talk to strengthen co-operation
Economic Front
Chinese companies support Laos in world expo
Japan grants US$ 16.6 million Budget Support Loan to Laos
At Social Front
Swine flu comes back to Laos with six new cases
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35
35
Laos
37
38
39
Brunei
•
•
•
•
At political Front
At Economic Front
Address Climate Change To Attain Sustainable Development
HM hails G20, Asean steps for economic recovery
7
40
Summary
At political Front
•
Philippine
According to this week's Abac poll, the popularity of Prime Minister Abhisit
Vejjajiva has shot up to 60% from 21.6% in October, the highest surge since he took
office late last year. The jump in popularity also marks the largest gap when compared to
ousted Prime Minister Thaksin Shinawatra's 21% then and 25% now.
The government should consider cancelling other agreements with Cambodia to
show its displeasure, after Cambodia hired former prime minister Thaksin Shinawatra as
an adviser, says the People's Alliance for Democracy (PAD).
8
The PAD threw its support behind Friday's decision by the government to cancel a
memorandum of understanding on development of an overlapping maritime area in the
Gulf of Thailand.
At Foreign Relations Front
•
Indonesia
Malaysia and Indonesia are set to enhance their bilateral ties when Indonesian President
Susilo Bambang and Prime Minister Datuk Seri Najib Tun Abdul Razak meet next week.
Susilo, scheduled for a two-day visit beginning Nov 11, is expected to discuss with Najib
matters regarding security, energy, food and labour besides economic matters.
Indonesia's president hopes to discuss a new "strategic partnership" with the
United States when he meets US President Barack Obama in Singapore on the weekend
At geo Strategic Front
•
Philippine
The United States Congress is supporting proposals to increase military assistance to
the Philippines, a top ranking Manila official said.
In a statement, Philippine Foreign Secretary Alberto Romulo said "both Houses of the US
Congress have recommended close to double the amount requested by the Obama
administration for foreign military assistance."Romulo said the Obama administration has
proposed $667 million (Dh2.4 billion) in assistance for the Philippines in 2010 which is
much higher than the $54 billion that Manila has been receiving annually between 2002
and 2006.
At Economic Front
•
Indonesia
State Minister for National Development Planning (Bappenas) affairs Armida
Alisjahbana estimated that Indonesia's economic growth to reach 8 percent by 2014 when
the present government ends its service, local media reported here on Saturday.
Armida said that Indonesia's economic condition would continue to improve in the
following years with 2010 growth estimation set at a range of 5.5-5.6 percent. "With
extra efforts, by 2011 Indonesia's economic growth could be boosted up to 8 percent to
2014. With moderate efforts, the growth could reach 7 percent," Armida was quoted by
the Detik.com as saying.
9
•
Malaysia
Things are looking good for the halal industry with the global market for halal
products and services currently estimated at US$2.1 trillion (RM8.4 trillion) annually.
The growth potential is evident as halal products and services are not limited to Muslim
consumers but also gaining high acceptance among non-Muslims, as consumers perceive
halal products to have undergone stringent inspection and standard controls.
•
Laos
An agreement for the Budget Strengthening Support Loan worth up to 1.5 billion
Japanese Yen (approximately US$16.6 million) for the Lao PDR was signed in Tokyo on
November 9. The signing ceremony took place at the headquarters of the Japan
International Cooperation Agency (JICA) in Tokyo and the agreement was signed by Mr.
Kenzo OSHIMA, JICA Senior Vice President and Mr. Sithong CHITNHOTHINH,
Ambassador of the Lao PDR to Japan.
•
Brunei
HIS Majesty Sultan Hj Hassanal Bolkiah Mu'izzaddin Waddaulah, the Sultan and
Yang Di-Pertuan of Brunei Darussalam yesterday welcomed the complementary efforts
undertaken in the G20 and in Asean to ensure that the global economy continues its
recovery. To achieve inclusive growth, His Majesty encouraged the sharing of
experiences to improve the development of human resources, social security and to
strengthen small and medium businesses.
At Social front
•
Philippine
Twenty-three people died in the southern Philippines as communist guerrillas and
security forces engaged in one of their most deadly battles in years, officials said
yesterday.New People’s Army (NPA) guerrillas killed 12 people, including eight soldiers
and a policeman, when they attacked a logging site on Wednesday in a remote forest on
the volatile island of Mindanao, the police and military said.
•
Vietnam
Vietnam confirmed that a 16-year-oldgirl in southern province of Kien Giang died of
A/H1N1 influenza, bringing the country's total number of flu deaths to 41, said a report
on the website of the Ministry of Health on Thursday.
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Detailed News Monitoring Report
Indonesia
• Political front:
• Foreign relations
• Malaysia And Indonesia Set To Enhance Bilateral Ties
Malaysia and Indonesia are set to enhance their bilateral ties when Indonesian President
Susilo Bambang and Prime Minister Datuk Seri Najib Tun Abdul Razak meet next week.
Susilo, scheduled for a two-day visit beginning Nov 11, is expected to discuss with Najib
matters regarding security, energy, food and labour besides economic matters.
The visit will be his first since taking the oath of office as Indonesian President for a
second term on Oct 20.
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Indonesia's Ambassador to Malaysia, Tan Sri Da'i Bachtiar, said President Susilo's visit
was significant as it placed Malaysia in a place of importance for Indonesia.
This was also reflected when Najib chose Indonesia as the first country to visit after
being sworn in as prime minister, he said.In earlier meetings before this both leaders had
stressed that both Malaysia and Indonesia would not only continue their existing good
relations but would in fact enhance them.As such both leaders had set to have annual
consultations hosted in turn with Jakarta being the first host this year and Kuala Lumpur
the next next year.In terms of trade, Indonesia is among Malaysia's top 10 trading
partners. Malaysia is also one of Indonesia's largest investors.
President Susilo is expected to provide a picture to Malaysian businessmen of his new
government's policy at a business luncheon on Nov 12.Da'i said besides bilateral issues
both leaders would also touch on issues related to multi-laterism.These included issues
related to the global financial crisis.
What was more important in the discussions was, both countries that have long historical
and cultural ties, were united for their common good and interests, he said."Of course
from the aspect of bilateral ties, we have issues not resolved, like maritime boundaries
that are being resolved through working groups," he said.On the matter of Indonesian
manpower, both leaders are expected to provide guidelines to their ministers working to
come up with a memorandum of understanding, in light of the Indonesian government
placing a moratarium on maids.He said another matter that may be brought up is the
death of maid Muntik recently where the government had given assurance that the matter
would be resolved according to law.
On relations between the two nations, Da'i said there were ups and downs when sensitive
issues emerged but efforts were being made to enhance communication amd interaction,
especially among youth.
Besides that the media was also important where Malaysian and Indonesian journalists
play a role to report on current developments and were responsible in their reporting so as
not to affect ties between the two countries.
• Indonesian leader to outline 'strategic partnership' with US
Indonesia's president hopes to discuss a new "strategic partnership" with the United
States when he meets US President Barack Obama in Singapore on the weekend, an
official said Tuesday.
Susilo Bambang Yudhoyono is scheduled to meet Obama on Sunday on the sidelines of a
summit of the 21-member Asia-Pacific Economic Cooperation (APEC), presidential
spokesman Dino Patti Djalal told reporters.
"I believe the president has proposed that there will be a strategic partnership between
Indonesia and the US. This has received a good response by the US government," Djalal
said.Senior officials from both countries were drafting a document outlining "practical
measures to raise the relationship between Indonesia and the US to a higher level", he
added.Indonesia's Muslims make up 88 percent of the country's 234 million people,
making the vast archipelago the most populous Muslim-majority country in the world.
It is also the third-biggest democracy after India and the United States, and the largest
economy in Southeast Asia with a growth target of at least 7.0 percent by 2014.
As such it is seen as a key partner for the Obama administration's plans to re-engage with
the Asia-Pacific region and with the Muslim world.
12
The White House last week announced Obama would hold the first meeting between a
US president and leaders of all 10 members of the Association of Southeast Asian
Nations (ASEAN), including Myanmar Prime Minister Thein Sein, in Singapore on
Sunday.Washington has previously refused to sit down with members of Myanmar's
junta because of their suppression of democracy and rights abuses, allowing its
differences with Yangon to upset ties with the rest of Southeast Asia.
Indonesia has been one of the harshest critics of the junta within ASEAN, but Djalal said
the new US stance had Jakarta's full backing.Obama spent part of his childhood in the
Indonesian capital Jakarta in the late 1960s, after his divorced mother married an
Indonesian.
• Economic Front
•
Indonesia's economic growth to reach 8% by 2014: minister
State Minister for National Development Planning (Bappenas) affairs Armida
Alisjahbana estimated that Indonesia's economic growth to reach 8 percent by 2014 when
the present government ends its service, local media reported here on Saturday.
Armida said that Indonesia's economic condition would continue to improve in the
following years with 2010 growth estimation set at a range of 5.5-5.6 percent. "With
extra efforts, by 2011 Indonesia's economic growth could be boosted up to 8 percent to
2014. With moderate efforts, the growth could reach 7 percent," Armida was quoted by
the Detik.com as saying.
She said that the growth estimation is based on normal external factors condition
assumption and great support from inside the country. "Improving the investment
would be an essential step to bolster the economic growth. It should be actively carried
out by the private sector since the government only allocates 15 percent from its state
budget to boost investments," Armida said. The minister said that Bappenas is now
seeking breakthroughs to entice investors from Middle East, South Korea, Eastern
Europe, India to set more investments in Indonesia.
• Indonesian president outlines road to recovery at APEC meeting
A better government rather than a big government is the answer to end the crisis,
Indonesian President Susilo Bambang Yudhoyono Friday shared his view with the
world's business chieftains attending the APEC CEO Summit in Singapore. The
criterion for a better government is a responsible, accountable and capable government,
he explained. In a keynote address to the question how to achieve balanced growth, the
Indonesian president noted that the worse is not over yet, the recovery is still fragile and
restructure reform needs to be done forcibly.
He insisted that the world needs more engines and Asia should lead the way. He
pointed out that for surplus countries, the right way is to invest valuable reserves in
infrastructure, education and health to enhance productivity while for deficit countries,
they should save more, start structural reform to correct unsustainable path. Susilo saw
the post-crisis period an opportunity to correct global imbalances and reform
international financial architecture.
The crux of the question, he maintained, is not how and when to phase out fiscal
stimulus and expansionary monetary policy, but how to replace crisis-breeding policies
with structural policies that will correct global imbalances and promote sustainable and
inclusive growth. On the Indonesians' preparedness for the post-crisis era, the president
said his country has experience after the 1997-1998 crisis and listed his government's
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priorities, including building confidence in government, ensuring conducive climate for
doing business, keeping spending in infrastructure, building social security net, ensuring
food security and promoting small-and-medium enterprises' growth.
He concluded that his government will respond quickly to crises and work in tan
dem with all sectors of society.
• Social front
Malaysia
• Political Front
• Anwar Admits Crisis Exists In Opposition Pact
Parti Keadilan Rakyat (PKR) advisor Datuk Seri Anwar Ibrahim Sunday admitted that a
crisis exists among parties in the opposition pact on the ground due to their political
differences.
"In the opposition pact, it is understandable that not all parties will agree with each other.
In PKR, we will find a crisis even at the branch level."If they feel that they cannot agree
with something, they will get angry and act like they are ready to launch a war."I would
like to remind those on the ground that we have our own channel to voice our opinion,"
he said when opening the Kelantan PKR Convention here today.Anwar said the dispute
among PKR leaders on the ground would also prompt them to turn their backs on other
parties in the opposition pact.He expressed disappointment with certain quarters in PKR
who sensationalised their dissatisfaction in the media as it would only jeopardise ties
among opposition parties
• Economic Front
•
Halal Industry Moving Beyond Religion And Borders
Things are looking good for the halal industry with the global market for halal products
and services currently estimated at US$2.1 trillion (RM8.4 trillion) annually.
The growth potential is evident as halal products and services are not limited to Muslim
consumers but also gaining high acceptance among non-Muslims, as consumers perceive
halal products to have undergone stringent inspection and standard controls.
Currently, the supply of halal products and services is dominated by non-European
countries, but a huge gap remains between the existing trade level of halal products and
the size of its market potential.The halal industry is considered to have a huge potential in
the European market which has yet to be tapped fully.
This is where the World Halal Forum (WHF) Europe 2009, which is starting Tuesday at
the World Forum Convention Centre in The Hague, the Netherlands, can play a part.
To be held for the first time outside Malaysia, WHF Europe is expected to provide
insights on the viability of the industry and how best to tap the enormous potential of the
halal market in the European region.The two-day event is aimed at providing the gateway
into the relatively untapped market and will collaborate with international and regional
authorities to hold discussions focusing on major issues related to the industry.
In line with its theme, "Halal Potential -- A Regional Focus", WHF Europe is also
expected to create a path for better understanding on the beneficial values of halal in the
global arena.
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"The higher purchasing power of European Muslims and the growing number of
educated Muslims in the labour market have contributed towards the strong growth of
halal food consumption while the trade potential is rapidly increasing," she told Bernama.
Jumaatun said as demand continued to grow in Europe, producers were scrambling to
prove the integrity of halal, which led to some misconceptions among various parties,
adding that WHF Europe would address the issue."It will be a very interesting forum as
not only will it focus on the business perspectives, but we will also be engaging with
parties which have issues with halal products, such as the Farm Animal Welfare
Council," she said.To ensure productive debates, lively discussions and constructive
deliberations, the inaugural WHF Europe is held in The Hague as it is considered a
neutral ground in terms of socio-political scenario."Furthermore, it has huge potential to
be a gateway for halal trade since Port of Rotterdam, which is now the largest port in
Europe, has dedicated storage and warehouse facilities which are already in place and
have been operational for the past years," Jumaatun said.
She believes that WHF Europe will also provide insights on the opportunities of the halal
industry and give a clearer perspective to businesses, consumers, Muslim groups and
policy makers on its viability and potential.
The gathering and participation of a huge number of industry experts, animal welfare
groups, academicians and scholars in WHF Europe 2009 will further strengthen the
future of the halal industry, she said."More importantly, the forum will help increase
understanding on the concept of halal and its beneficial values, not only to Muslims but
to non-Muslims as well," she added.
Europe, which has the third largest concentration of Muslims after Asia and Africa,
currently has a Muslim population of about 51.2 million, with a growth of 140 per cent in
a decade.European Muslims play a major role in the global halal market as they have
higher purchasing power, indicating the huge market potential.The World Halal Forum
was launched in 2006 to promote the halal concept for the benefit of the global Muslim
market.
• Najib: We want best trade deal
Malaysia will study a regional free trade pact preferred by its biggest trading partner, the
United States, said Prime Minister Datuk Seri Najib Razak.
Malaysia wants an FTA deal with the US to boost trade and investments but this has
stalled for more than three years.
Instead, the US has shown its interest in joining the Trans- Pacific Partnership, an FTA
between Singapore, New Zealand, Brunei and Chile.“Our view is that any new initiatives
should harmonise with existing regional architectures,” Najib said, referring to groups
such as Asean+3, which is the 10-member Association of Southeast Asian Nations with
China, Japan and South Korea.
The US is also one of Malaysia’s biggest foreign investors.Najib spoke after the end of
the Asia-Pacific Economic Cooperation (Apec) summit here yesterday.He also attended
the first Asean- US Leaders’ Summit, which was held after the Apec meeting.
Najib said Apec leaders had produced a firm stand to revive their economies by rejecting
protectionism and committing to next ye a r ’s deadline of global trade talks under the
World Trade Org a n i s at i o n , known as the Doha Development Round.The talks have
stalled since 2001 because of differences between major countries such as the US and
China.In a statement earlier, Asia- Pacific nations said they planned to present a long-
15
term strategy to grow their economies in a more balanced way next year, admitting that
the global economy had yet to fully recover from a recession.Apec, whose members
make up half of the world’s economy, includes major countries such as the US, China,
Japan and Russia and this year’s meeting marks the g rouping’s 20th anniversary.“We
cannot go back to growth as usual,” it said, adding that it would boost growth by
innovation and a knowledge-based economy.
The World Bank has forecast the world economy would contract by 2.9 per cent this
year, the worst since the Great Depression, and rebound to two per cent next year, helped
by massive government spending and interest rate cuts.
• Social Front
•
90 Per Cent Of Malaysian Pilgrims Arrive In Mecca
About 90 per cent of the 26,000 Malaysian pilgrims have arrived in Mecca for the Haj
pilgrimage.Head of the Malaysian haj delegation, Mohd Salleh Abd Mubin said the last
flight carrying the Malaysian pilgrims was scheduled to arrive at the Jeddah International
Airport this Saturday.
"The last flight through the haj terminal in Medina is expected to arrive tomorrow, while
all flights after that will land in Jeddah," he told the media here Monday.The flight
carrying the first batch of about 400 Malaysian pilgrims landed at the haj terminal in
Medina on Oct 20 and they entered Mecca seven days later.The haj pilgrims are placed at
10 hostels in Mecca while waiting for Wukuf (grand gathering) on Nov 26.
Philippine
• Political Front
• US pushing for increased military aid to Philippines
The United States Congress is supporting proposals to increase military assistance to the
Philippines, a top ranking Manila official said.
In a statement, Philippine Foreign Secretary Alberto Romulo said "both Houses of the US
Congress have recommended close to double the amount requested by the Obama
administration for foreign military assistance."Romulo said the Obama administration has
proposed $667 million (Dh2.4 billion) in assistance for the Philippines in 2010 which is
much higher than the $54 billion that Manila has been receiving annually between 2002
and 2006.
The assistance package includes defence, security and economic aid; poverty alleviation
and benefits for Filipino veterans who fought under the US flag during the Second World
War.
Human rights
Earlier, Representative Neri Colmenares of the Bayan Muna (Nation First) party, said the
Philippines is poised to lose $2 million in military assistance from the US in 2010 if the
Philippines continues to fall short of addressing human rights concerns.
Colmenares said that during his recent visit to the US, he was informed by the deputy
director of the Office of Maritime Southeast Asian Affairs at the Department of State,
Raymond Richhart, that the $2 million will not be released until the human rights
concerns are addressed.
But Romulo said the Obama administration has requested the deletion of the condition on
the $2 million in security assistance in recognition of significant progress made by the
Philippines in addressing human rights concerns.
16
"The Philippine government had been recognised by both the Obama administration and
the US Congress for its efforts in addressing human rights issues. We welcome US
engagement with our country because we share the same values of democracy, freedom
and rule of law,"The Philippine government remains fully committed and determined to
address issues in relation to the protection and promotion of human rights," Romulo said.
The Philippines is largely dependent on foreign aid, particularly from the US, for its
defence and security.
• Clinton in Manila, defends military ties
US Secretary of State Hillary Clinton gestures at the inauguration of a book fair during a
visit to a flood-stricken high school in the town of Marikina, east of Manila yesterday
US Secretary of State Hillary Rodham Clinton yesterday underscored the importance of a
controversial defence agreement in America’s relations with the Philippines.
Philippine legislators have called for the renegotiation of the Visiting Forces Agreement
(VFA), which allows the limited deployment of US troops in the country, for being onesided. Some senators, including allies of President Gloria Macapagal Arroyo, have even
called for the outright abrogation of the 10-year-old pact.
“The visiting forces agreement is an important expression of our partnership,” Clinton
told reporters after meeting her Filipino counterpart Alberto Romulo at the start of a twoday visit in Manila. “It is based on mutual respect and mutual interest,” she added. “The
US is committed to a strong partnership and alliance with the Philippines.”
Clinton said the US remains committed to helping the Philippines fight terrorism in the
strife-torn southern region of Mindanao, where hundreds of American troops have been
deployed since 2001.
“I would just reiterate that the US stands ready to assist our friends in the Philippines who
are seeking to counter terrorism and the threat of extremism,” she said.
Romulo said the US troops in Mindanao have been very helpful in providing assistance,
training and advice to Filipino troops fighting the Muslim militants in the area.
“It (the VFA) has worked very well for us,” he said.
During a brief visit to the suburban city of Marikina, which was hit hard by devastating
floods caused by storm Ketsana in September, Clinton announced an additional $5.2mn
in disaster relief aid. The assistance was on top of more than $14mn earlier donated by
Washington, the US embassy said.
About 5,000 police were deployed around Manila as leftist activists held protests against
Clinton’s visit and what they allege to be US intervention in Philippine affairs.
But a senior State Department official said most Filipinos supported the military ties with
the US. The official said Clinton wanted to show a “strong commitment” to Manila in its
fight against extremists, but it would be up to the new US Pacific commander, Admiral
Robert Willard, to study strategies.
Philippine authorities say the rebel Abu Sayyaf group’s numbers have fallen to 300-400
from about 1,000 eight years ago, when the US Special Forces arrived to begin training
the Filipino military. Analysts say US intelligence and weaponry helped Filipino soldiers
capture or kill the main leaders of the Abu Sayyaf early in the mission.
But they said younger, more radical rebels had taken their place, as evidenced by
persistent violence in the remote southern Philippine islands where the Abu Sayyaf is
based and has support from local Muslim communities. Clashes in the southern islands
17
since the start of the year have left 48 Filipino soldiers and at least 70 Abu Sayyaf
militants dead, according to authorities.
Clinton later met Arroyo for a dinner.
Executive Secretary Eduardo Ermita said Arroyo and Clinton would discuss US military
assistance to the Philippines and the participation of American troops in relief and rescue
operations during recent typhoons that battered the country.
• Economic Front
• Social Front
•
23 killed in Philippines communist attack
Twenty-three people died in the southern Philippines as communist guerrillas and
security forces engaged in one of their most deadly battles in years, officials said
yesterday.New People’s Army (NPA) guerrillas killed 12 people, including eight soldiers
and a policeman, when they attacked a logging site on Wednesday in a remote forest on
the volatile island of Mindanao, the police and military said.
Eleven rebels were killed in a counter-attack, according to the military, which said the
fighting raged over seven hours and left the surviving security forces nearly out of
bullets.The clashes near the town of Lanuza were the heaviest engagement of the security
forces against the Maoist guerrilla force for at least two years in terms of casualties,
based on publicly available records.
Only one other reported firefight since the end of 2007 between the 5,000-member NPA
and the security forces led to more than nine deaths.
In Manila, military spokesman Lieutenant-Colonel Romeo Brawner said it was the
deadliest clash since at least last year, although he could not immediately give details as
to the last time so many people died.
About 100 NPA troops initially overwhelmed the logging company’s private security
force, then set fire to equipment, according to regional deputy police chief Nestor Fajura.
A combined army and police force, guided by company security guards, mounted a
counter-attack but the rebels set off a series of roadside bombs that hit the convoy, said
Fajura and local military spokesman Major Michele Anayron.
Two military vehicles were hit by improvised explosive devices, according to Anayron,
spokesman for the Philippine Army’s 4th Infantry Division, whose forces were targeted
in the ambush.
Anayron said only one body of the 11 communist rebels killed was recovered and the
surviving guerrillas were believed to have carried away their dead comrades.
The Philippine Army said in a separate statement that a military-led convoy sent to
protect the logging firm was struck with remotely detonated roadside bombs,
immediately killing two soldiers and pinning down the rest of the unit.
A seven-hour firefight ensued, killing six other soldiers, a policeman and three logging
firm guards, it added.Another 10 soldiers, a police officer and the logging company’s
security chief were wounded in the clashes, according to Fajura and Anayron.
The NPA released a statement about its attack on the logging company, but did not
mention the firefight.It said the guerrillas stole 11 firearms from the logging firm guards
and set fire to 12 pieces of logging equipment.
The NPA has been waging an insurgency across the Philippines for the past 40 years. It is
believed to have about 5,000 militants, and is well known to raise money through
extortion.
18
The military said in September that the communist insurgency had claimed more than
3,000 lives over the past eight years.No reason was given for Wednesday’s attack on the
logging company but the communists often attack such sites as punishment for
companies not giving in to extortion demands, and to gain weapons from the targets’
security details.President Gloria Arroyo shelved peace talks with the rebels in 2004.
A fresh effort to restart negotiations aimed at bringing a political settlement broke down
in early September over the communists’ demand that the government release several
jailed communist guerrilla leaders.
•
Major Asian cities face climate disaster: WWF
Low-lying and impoverished Asian coastal cities such as Dhaka, Manila and Jakarta are
vulnerable to "brutal" damage from climate change without global action, environmental
group WWF warned Thursday.
Energy consumption and greenhouse gas emissions must be curtailed in "mega-cities"
where global warming will affect everything from national security to water availability,
the influential campaign group said."Climate change is already shattering cities across
developing Asia and will be even more brutal in the future," said Kim Carstensen, head
of the WWF Global Climate Initiative."These cities are vulnerable and need urgent help
to adapt, in order to protect the lives of millions of citizens, a massive amount of assets,
and their large contributions to the national GDP (gross domestic product)."
WWF issued its report to coincide with a weekend summit in Singapore to be attended by
US President Barack Obama, Chinese President Hu Jintao and other Asia-Pacific leaders.
The summit takes place three weeks before crucial talks on a new world climate pact
open in Copenhagen on December 7.WWF said that on a "vulnerability" scale going up
to 10, Dhaka rated nine points, and Manila and Jakarta eight each.
"Leaders in hotspots of danger like Dhaka, Manila or Jakarta need urgent support from
their counterparts in the industrialized world," Carstensen said.
"Effective near-term and long-term adaptation will depend on financial support,
technology cooperation, and capacity-building," he said.
The report said that better-off Asian cities such as Shanghai, Hong Kong and Singapore
faced risks too from the effects of climate change, such as rising seawater levels,
excessive rain, flooding and heat waves.
Calcutta and Phnom Penh received scores of seven each on the WWF danger scale, Ho
Chi Minh City and Shanghai six each, Bangkok five, and Kuala Lumpur, Hong Kong and
Singapore four each.WWF urged the leaders of the Asia-Pacific Economic Cooperation
(APEC) forum to use their weekend summit to promote strategies to reduce carbon
emissions across the 21-member organisation.
In a communique to be issued at the end of their annual meeting Sunday, APEC leaders
are expected to declare their support for a global deal at next month's Copenhagen
climate gathering."We believe that global emissions will need to peak over the next few
years, and be reduced to 50 percent below 1990 levels by 2050, recognising that the time
frame for peaking will be longer in developing countries," said a draft of the statement
obtained by AFP.
Thailand
• Abhisit's govt needs to redefine the national interest
19
According to this week's Abac poll, the popularity of Prime Minister Abhisit Vejjajiva
has shot up to 60% from 21.6% in October, the highest surge since he took office late last
year. The jump in popularity also marks the largest gap when compared to ousted Prime
Minister Thaksin Shinawatra's 21% then and 25% now.
Will PM Abhisit Vejjajiva revoke memoranda of understanding and agreements every
time Thaksin flies into Phnom Penh and Hun Sen calls us names?Mr Abhisit's numbers
surpassed the height of his ratings in April after his handling of the riots instigated by
Thaksin's red shirt supporters when he gained 58.2% over Thaksin's 15.9%.
It must be noted that both rises in the ratings for Abhisit were not the result of the
government's performance but that of Thaksin's own mishaps. In April it was the result of
a major tactical mistake by the red shirts' march on the venue of the Asean Summit in
Pattaya and the rally in Bangkok that got out of hand and turned into rioting. In his
attempt to explain what happened, Thaksin went on live interviews with CNN and BBC
but failed to give clear answers. In the process, he fumbled the ball, which Abhisit picked
up and ran off with.
Again, this past week, Thaksin saw a drop in his numbers as a consequence of moves by
Cambodian Prime Minister Hun Sen in standing up for and appointing Thaksin his
economic adviser while attacking the Thai government in a series of announcements and
interviews. Thaksin, who believes that "a friend in need is a friend indeed", further
caused an uproar by his visit to Cambodia. Around the same time, in an unconnected
event, Thaksin gave a controversial interview with Timesonline.com that touched upon
the monarchy which is deemed inappropriate if not lese majeste.
Of course, the government did not hesitate to capitalise upon the issues since both are
highly sensitive and rubbed on the raw nerve of the Thai public. It chose to play with the
nationalistic sentiment, as many Thais still view Cambodia with animosity and not as a
friendly neighbour (and reading Hun Sen's interview, the feeling is mutual). And as all
Thais know, His Majesty the King is highly revered and loved; so if a person is branded
as being disloyal, that person is literally better off dead than alive.Administered in right
doses, this new-found popularity caused by stirred-up emotions could carry Abhisit and
his government onward, before it is forced to dissolve the House of Representatives and
call fresh elections. Hopefully, the lingering sentiment could bring them back to power.
However, the government must also be reminded that manipulating the issues too far
could backfire. It could cause irreparable damage not only to Mr Abhisit's credibility and
his political future, but to the national interest and its institutions as well.It is good for a
nation that its citizens are patriotic, and the government has the duty to maintain the right
patriotic culture as part of the nation-building process. A strong nation is one with
citizens willing to work together to protect the national interest.
"National interest" can be defined in broad terms as the three pillars of nation, religion
and the monarchy in Thailand; or in narrow terms such as keeping the border open for
trans-boundary trade.
But since coming into office, Mr Abhisit and his cabinet, especially the Minister of
Foreign Affairs, Kasit Piromya, has been defining "national interest" in the narrowest of
terms - the hunting down and capturing of Thaksin and the preventing of his return to
power, or that of his political allies.It is easy to blame Thaksin for all the nation's woes.
But the problem of one man should not define what is best for the nation. Thaksin may
20
still be a hero to some, an enigma to others and in the eyes of many, a fugitive running
from conviction for corruption and abuse of power.
But he was ousted and is now out of power. He has yet to face a series of court cases
including one regarding confiscation of his 76-billion -baht assets. Although the
argument that Thaksin still has a lot of resources and leverage is valid, the government's
fear of Thaksin is unwarranted if it defines its priorities correctly.
For at the end of the day, the best way to shut out Thaksin is to outperform him and his
legacy, not to bully him into submission. The public must be able to see that there is a
viable alternative, one that can bring political peace and reconciliation together with
economic prosperity. So far they can only see the good times during Thaksin's era even
though many are uncomfortable and do not want to revert to his rule.
The military leaders of the Sept 19, 2006 coup d'etat failed to provide that, so did the
interim government of Gen Surayud Chulanond, despite the initial acceptance by the
public. Now, after almost a year in power, the Democrat-led government is still stuck in
the pit-hole. Populist policies were copied with "top-up" incentives. In the name of
solving the economic crisis, an unprecedented 400-billion-baht stimulus package with a
long list of projects was approved. Marketing and PR campaigns have been designed to
convince the grassroots that the government, and Mr Abhisit in particular, could do what
Thaksin has done - and even better.
Still, the government has been unable to win the hearts and minds of the entire nation,
failing to capture the imagination of the Thai public the way Thaksin did in his early
days. And all because the manner in which Mr Abhisit plays the game is, in effect,
following the tune Thaksin defines.
Similarly, in the case of foreign policy towards the world and our neighbouring countries
and friends in the Asean context, the government has been unable to set a clear direction
in its approach. In the case of Cambodia, Thaksin will continue to be a nuisance to Mr
Abhisit - no one can stop him. And Hun Sen, forever cunning and shrewd, will use this to
the benefit of his nation. The question is, will Mr Abhisit revoke memoranda of
understanding and agreements every time Thaksin flies into Phnom Pehn and Hun Sen
calls us names?
Is it really worth taking this recourse? Former foreign minister Surakiart Sathirathai told
me that the 2001 MoU on the overlapping area in the Gulf of Thailand has many
"invisible benefits", including a basic agreement that any activity in the area has to be
agreed upon before implementation. By scrapping the MoU, the hands are now untied
and Cambodia could go it alone. Is that the price to pay to keep Thaksin at bay?
The government must redefine its "national interest." It should not tie all the problems to
Thaksin. Whatever Thaksin did wrong, the government must go through the judicial
process to deal with it, and not play along with his agenda.
With Hun Sen, the priority is to see the two nations work together for a shared regional
prosperity, not turning it into a potential war zone. If the government continues to
maintain a one-track mind, an atmosphere of confrontation domestically and across the
border will continue, which is not for the best of the nation.
• Thai tensions rise over Cambodian role
Thaksin’s visit to Cambodia has electrified Thailand three years after the three-times
elected leader was forced from power in a military coup. His appointment as an
“economic adviser” by Hun Sen, the Cambodian Prime Minister, has enraged his enemies
21
as deeply as it has galvanised his many supporters.Dozens of members of the “Red Shirt”
movement, as it is known, travelled across the border into Cambodia and wept and
embraced Thaksin as he arrived at a hotel in the city of Siem Reap.
Earlier in the day, he gave a speech to 300 Cambodian Government officials in the
capital, Phnom Penh, where he spoke of his hopes for partnership between the states. “A
prosperous neighbour means better opportunities for us to grow together,” he said in a
lecture entitled“Cambodia and the World after the Financial Crisis”.
He said: “Of course, not all my compatriots see it that way right now. Their domestic
political compulsions force them to false patriotism. Let’s pray that they too will one day
appreciate this partnership for progress.”
Thaksin was taken on a tour of Angkor Wat, the magnificent temple complex built by a
Cambodian king who once ruled over an empire that included parts of present-day
Thailand. The name of nearby Siem Reap, means “Defeat of Thailand”.
Thaksin is scheduled to return to the Gulf city of Dubai — his home in exile — today,
but there seems little prospect that the ill-feeling about his visit will lessen in the near
future.On Sunday, opponents of Thaksin, known as “Yellow Shirts”, plan to hold a rally
in Bangkok to protest against his visit to Cambodia as well as against an interview he
gave to The Times in which he spoke of the succession in the Thai monarchy after King
Bhumibol Adulyadej dies.In the interview, he spoke of his respect for King Bhumibol,
but his contempt for the “palace circle” — courtiers he accuses of interfering in politics.
He also spoke of his hopes for a “shining” reign by the King’s anticipated successor,
Crown Prince Maha Vajiralongkorn: “The Crown Prince, because he will be new, may
not be as popular as His Majesty the King,” Thaksin said. “However, he will have less
problem because the palace circle will be smaller, because of being new in the reign.”
The interview has provoked a complaint, lodged by a group of Thai senators and
generals, against Thaksin and myself, of lèse majesté — or insulting the monarchy.
Apart from increasing already feverish political tensions within Thailand, the dispute is
an embarrassment to Abhisit Vejjajiva, the Thai Prime Minister, who will attend the
Apec summit as the chairman of the Association of South-east Asian Nations (Asean).
Mr Abhisit made efforts to soothe the conflict yesterday. “The Government does not want
to create conflicts which could lead to any violence. It is not a conflict between the Thai
and Cambodian people,” he said.
“We don’t want this problem to affect Asean, and we don’t want to see it spreading to
other places . . . There is no reason for the conflict \ to cause any political change in the
country. We will adhere to international practice. Shouting loudly does not mean being
strong. Sometimes, quiet ways of dealing with a conflict are more effective.”
• Former Thai PM Thaksin arrives in Cambodia
The fugitive former Thai Prime Minister Thaksin Shinawatra has arrived in Cambodia's
capital Phnom Penh.The AFP newsagency says he arrived in a small plane at the city's
International Airport and was escorted into Phnom Penh by a convoy of cars under tight
security.Mr Thaksin is in Cambodia to take up a position as economic adviser to
country's government.The job has sparked a furious row between Bangkok and Phnom
Penh.The Thai government says it will seek his extradition from Cambodia but Phnom
Penh says it will reject the request.
Meanwhile, the Thai government has accused Mr Thaksin of offending the country's
monarchy.Thailand's foreign minister says an interview Mr Thaksin gave to a British
22
newspaper ahead of his visit violates the monarchy in referring to its involvement in
politics.Mr Thaksin says the article misrepresented his views.Insulting or defaming the
royal family is punishable by up to 15 years in jail in Thailand.
• Thailand not sealing Cambodia border yet
Thailand said yesterday it has no plan yet to seal its border with Cambodia despite a
diplomatic row, but will seek to extradite fugitive former premier, Thaksin Shinawatra, if
he goes to Cambodia to become an adviser.
Prime Minister Abhisit Vejjajiva also said in an interview that Thailand’s King Bhumibol
Adulyadej has been recovering from his illness and he expected the 81-year-old king to
be discharged from hospital soon.
Thailand and Cambodia deepened a diplomatic row by recalling their ambassadors from
each others’ countries on Thursday after Phnom Penh made Thaksin an economic
adviser.The tit-for-tat spat threatens to worsen political tensions in Thailand by
potentially giving Thaksin a base across the border from where he can direct his
supporters and causing a diplomatic embarrassment for Abhisit.
“We did not talk,” Abhisit said when asked if he had a chance to speak with Cambodian
Prime Minister Hun Sen while he was in Tokyo for a summit of five Mekong region
nations and Japan, which brought him and the Cambodian leader together at an awkward
time.But asked if Bangkok would seal its border with Cambodia, Abhisit said, “At the
moment, we don’t have plans to do that.”
Thaksin, the twice-elected billionaire who was deposed in a coup three years ago and has
been living in exile to avoid corruption charges, still commands widespread support in
rural areas and remains a force in Thai politics.
Abhisit stressed the dispute did not affect the two-day Japan-Mekong summit meeting
that ended earlier in the day.“We are very conscious that this is an issue that we should
solve bilaterally and that we should not let this get in the way of multilateral cooperation.
So we won’t allow to affect Asean. We won’t allow to affect a forum like this,” he said.
Abhisit said Thailand’s king, who has been in hospital since September 19, was
recovering and that he was performing his duties from the hospital.
The 81-year-old king, the world’s longest serving monarch, is regarded as semi-divine by
many of the country’s 67mn people.“He has recovered and is now staying to do
physiotherapy. And soon we expect His Majesty to be discharged from the hospital,”
Abhisit said, adding that the timing of the king’s release from hospital would be up to
doctors.The king’s health is a sensitive topic in financial markets because he is seen as
the sole unifying figure in a politically polarised country with a long history of coups and
upheaval.Abhisit said the king was still performing his duties in hospital. “We have laws
that have been signed and have come to affect, for instance, the budget law.”
•
Cancel other pacts, financial aid projects to Cambodia, PAD urges
The government should consider cancelling other agreements with Cambodia to show its
displeasure, after Cambodia hired former prime minister Thaksin Shinawatra as an
adviser, says the People's Alliance for Democracy (PAD).
The PAD threw its support behind Friday's decision by the government to cancel a
memorandum of understanding on development of an overlapping maritime area in the
Gulf of Thailand.
23
But it said the Democrat Party-led government should step up its protest action, by
reviewing other agreements with the country, evicting Cambodians who have illegally
settled in disputed border areas claimed by both countries, and cancelling all aid projects
for Cambodia.A PAD rally persuaded the previous government backed by Thaksin to
reverse its support for Cambodia's decision to list the ruins of the 11th century Hindu
temple of Preah Vihear as a World Heritage site, under the United Nations Educational,
Scientific and Cultural Organisation.The decision to scrap the MoU on the maritime
boundary has led to a spat between the Democrats and opposition Puea Thai Party.
The Democrats have criticised Thaksin's decision to accept Cambodia's offer to advise
Cambodian Prime Minister Hun Sen and his government.The ruling party, as expected,
supports the government's move to review all MoUs signed by the Thaksin
administration with Thailand's neighbour.They must be reviewed to protect Thailand's
interests, said Democrat spokesman Buranat Samutarak.
The government fears that if Thaksin begins to act as Cambodia's adviser, he could put
Thailand in a disadvantageous position.Mr Buranat said bilateral relations with Cambodia
had turned sour because of Mr Thaksin's lack of conscience.
• Economic Front
• At Social Front
Singapore
• Political Front
• S'pore, Indonesia to hold retreat in six months to review bilateral
relations
Singapore and Indonesia will hold a retreat in six months to review bilateral relations.
Singapore Prime Minister Lee Hsien Loong announced this on Thursday after meeting
visiting Indonesian President Susilo Bambang Yudhoyono, who was recently re-elected
for a second term in office.
President Yudhoyono and his wife were given a warm welcome when they arrived at the
Istana on Thursday afternoon. The first order of business was a call on President SR
Nathan.
After that, Dr Yudhoyono met Minister Mentor Lee Kuan Yew and Prime Minister Lee
Hsien Loong. Speaking at a banquet for Dr Yudhoyono later, Mr Lee noted how relations
between both sides have grown over the years. "Bilateral relations have been good over
the past five years. Singapore and Indonesia are cooperating on several fronts, including
combating terrorism, managing environmental challenges and preventing the spread of
infectious diseases," said PM Lee.
Dr Yudhoyono also re-affirmed Indonesia's commitment to Singapore, noting how both
sides are inter-linked - economically, culturally and socially. "I have brought with me
some new faces in my Cabinet, but I assure you they are all friends of Singapore and
ready to work with you to strengthen our important relations," said President Yudhoyono.
Singapore and Indonesia have some outstanding bilateral issues to iron out. These include
the stalled talks over a Defence Co-operation Agreement and an extradition treaty.
Singapore has said it is ready to resume talks over both issues. But Indonesia has to
determine when that will take place.
Dr Yudhoyono is in Singapore ahead of the APEC Leaders' Meeting this weekend. This
is his first bilateral visit here since his inauguration last month which was also attended
24
by PM Lee. The Singapore Ministry of Foreign Affairs said these visits reflect the warm
ties between both countries. •
APEC and ASEAN concerned over spat between Cambodia and
Thailand
The on-going spat between Cambodia and Thailand is of concern to the ministers at the
APEC meetings and ASEAN.
This follows the arrival of former Thai premier Thaksin Shinawatra in the Cambodian
capital Phnom Penh on Tuesday to take up his post as the country's economic advisor.
Speaking to the media on the sidelines of the APEC symposium, Singapore's Foreign
Minister George Yeo said that ASEAN Secretary-General Surin Pitsuwan had called him
on the subject two days ago. Dr Surin had also written to ASEAN foreign ministers
urging both parties to find a way to resolve their problems.
Mr Yeo said member countries are concerned about the bilateral issue and hope they
would exercise restraint.
He added that ASEAN is happy to accommodate if the countries want to use the
grouping's facilities to solve the problem. However, Cambodia and Thailand have yet to
make a request. On the upcoming US-ASEAN meeting, Mr Yeo believes both sides
would be discussing about facilitating trade and investments.
• Economic Front
• PM Lee urges APEC members to re-commit to goals of free trade
Singapore Prime Minister Lee Hsien Loong has called on Asia Pacific Economic
Cooperation (APEC) members to re-commit to their goals of sustaining growth, avoiding
protectionism and promoting regional economic integration.
Mr Lee was speaking at the welcome reception for the APEC Ministerial Meeting at
Suntec Singapore Convention Hall on Tuesday evening. Besides the foreign ministers,
trade ministers, finance deputies and other delegates, some special guests were also at the
reception. "We have some special guests with us, old friends who were involved in the
formation and early development of APEC," said Prime Minister Lee. "For example, Mr
Bob Hawke, who was prime minister when Australia convened the first APEC meeting in
Canberra." The special guests are in Singapore for a high-level symposium to
commemorate the 20th anniversary of APEC.
Mr Lee noted that APEC was formed in 1989 amid concerns of rising protectionist
sentiments. Twelve economies, including Singapore, Australia and the US, came together
to give free trade a push. Today, the grouping has grown to 21 members, and there is
added resonance to that very same agenda, as economies prepare for a post-crisis
landscape. Prime Minister Lee said that the APEC meeting in Singa pore takes place at a
pivotal moment "when the world economy is emerging from the global financial crisis,
when the situation has stabilised, yet the economic outlook remains uncertain, when
much still needs to be done to sustain the economic recovery".
And as Mr Lee pointed out, this is a good time for APEC members to re-commit to their
goals of free trade. He said: "So, this 20th anniversary is a good time to re-energise
APEC and re-commit ourselves to its work to ensure that APEC continues to take the
lead in trade liberalisation and business facilitation, and continues to be relevant and to
adapt as the APEC community in our region continues to grow and change."
There is a slew of challenges governments will have to face as economies deal with
different stages of recovery. Observers have said that the immediate issues include how
25
governments want to exit from their various stimulus packages as well as growing
unemployment as economies restructure. These issues and more will form the basis of
talks as APEC leaders meet at the end of the week.
• US must boost trade ties with Asia to remain competitive in world economy
The CEO of the US Chamber of Commerce said the US must boost trade relations with
Asia to remain competitive within the global economy.
Speaking to MediaCorp at an AmCham Singapore event, Mr Tom Donohue said the US
will have to be more proactive in reaching trade deals with Asia or it will risk getting left
behind at a time when the region is pursuing its own free-trade pacts. His comments came
as the US and South Korea are in talks for a free trade agreement.
US President Barack Obama is due to join the APEC Economic Leaders Meeting in
Singapore this weekend.
And the US Chamber of Commerce said it is hoping there will be concrete commitments
towards freer trade. Mr Donohue said: "We would like to see expansion of trade
relationships. Number two, we would like to see a positive set of agreements about the
issues that surround trade, (and) vigorous effort to protect intellectual property. "We
would like to see an improvement on trade facilitation on transportation... We would like
to see some agreements with the people in these countries about how we can collectively
approach issues of climate.
"Be constructive with results, and that means let's get on with the trade deal, because if
we don't have that, we are not going to have anything else. Because if we don't have a
good trade policy, and good trade relations, it's very hard to have good diplomatic
relations."
• ABAC says financial regulation needed after global economic recovery
Financial regulation was one of the main issues discussed on the second day of talks by
the APEC Business Advisory Council (ABAC) in Singapore. The APEC business
community said that a standard for financial regulation is essential to successful trade
liberalization.
However, this should come only after the global economy has bounced back - because
any tightened regulations now could derail the economic recovery. "Financial regulation
might kill the weak, fragile economic recovery. That's what we are very afraid of," said
Yoshihiro Watanabe, chairperson, Finance and Economics Working Group.
Observers said that the global economic crisis has prompted policy makers to trend
towards more stringent regulations. For the financial sector, these include looking at
banks' capital adequacy ratios, leverage ratios and too-big-to-fail institutions. "There are
many, like capital adequacy, leverage ratio, and like, too big to fail issues. Those issues
(are) very important issues. But the way of introduction must be very careful, with
dialogue through private business people. Otherwise it (can) sometimes very dangerous,"
said Mr Watanabe. Mr Watanabe suggested that there must be dialogue between the
private sector and governments on crafting regulations to suit the new economic order
that will emerge from the crisis, but timing will be important.
He said such new regulations should only be put in place when a full recovery is
underway - perhaps in 2011. As with all new policies, there are likely to be some teething
challenges. According to experts, a forum like APEC could help smooth out the sideeffects. "Each economy is in a different stage of development and some have got a
stronger financial system, and others are still developing, and the beauty of APEC is that
26
we all work on a very collaborative manner," said Chong Siak Ching, chairperson, APEC
CEO Summit 2009 Organising Committee.
"Therefore, we urge the government to work hand in hand with the private sector, with
the other financial institutions, regional and international, to see how to strengthen the
various financial infrastructures within the region," he added. Mr Watanabe said: "We
need to have a sustainable and inclusive growth, and also a balanced growth. And we
have been discussing those points throughout the Singapore process.
"And like inclusive growth, we need to include those of social foundation, financial
inclusion. And for financial inclusion, we need a new set of regulation for microfinance,
micro remittance, micro insurance - all those have kind of a new agency, mobile banking,
Internet banking, something like that. Proper regulation is needed."
This week's session will be the last time that ABAC leaders are meeting this year.
Business leaders will have a consolidated list of key business issues and
recommendations by Wednesday. These will be communicated directly to the 21 APEC
Leaders at a dialogue session on Saturday.
• Global business leaders stay cautious as unemployment remains high
Despite signs of an improving global economy, business leaders around the world are not
yet cheering. This is because employment is still lagging the overall rebound.
This is a key finding of a survey jointly conducted by PricewaterhouseCoopers (PwC)
and the organisers of the APEC CEO Summit. The survey was carried out between
August and November this year. It polled over 350 business leaders in the APEC region.
It consists of another 24 face-to-face interview with 24 business leaders in APEC,
including Far East Organisation's chief executive Philip Ng and DBS Chairman Koh
Boon Hwee. 58 per cent of the respondents said the worst of the financial crisis is over.
But only 25 per cent believe that unemployment levels will revert to pre-crisis levels in
the next year.
"The big open challenge I think continues to be ... unemployment. And that will have a
direct impact on how long it takes for this recovery to work its way through the global
economy, and that's going to vary (across) different parts of the world," said Dennis
Nally, chairman of PwC International.
Respondents in the US were generally more optimistic that those in Northeast Asia. 75.8
per cent of US respondents believe that the worst of the economic crisis is over. In
contrast, just 53.7 per cent in North East Asia share the view.
The gap in optimism has been attributed to cultural differences, and also the existence of
a more comprehensive social security system in the US. As for the overall economy,
respondents were generally cautious about when they will see a complete recovery.
About 37 per cent expect it to take another two to three years.
• APEC finance ministers say world economies must find new sources of
demand
APEC finance ministers world economies must find new sources of demand, as they can
no longer rely on the US consumer to continue driving exports in the post-crisis era.
US demand will take a long time - if ever - to rise back to levels seen before the financial
crisis. And APEC economies agreed that they must implement structural reforms.
They also said they will not withdraw their stimulus policies, until they see a strong pick
up in private spending. Speaking as chairman of the Finance Ministers Meeting,
27
Singapore's Finance Minister Tharman Shanmugaratnam said these reforms should be
aimed at providing incentives for private spending and boosting purchasing power.
"We will not focus simply on macroeconomic policies, fiscal exit strategies, monetary
policies, monetary and exchange rate policies. We talked a lot about the structural
reforms that are necessary to sustain domestic demand growth beyond the fiscal stimulus
that each of us has injected into our economies," said Mr Tharman.
Several ministers said they would not rush the withdrawal of fiscal stimulus packages.
US Treasury Secretary Timothy Geithner added that each APEC economy will have to
take different exit strategies, saying there will not be a one-size-fits-all approach, and
timing will be key.
"The important thing is a recognition that we need to make these decisions together in
recognition of the basic mixes involving each of our countries. And I think that'll help
improve the prospects that we come out of this with a firmer foundation for growth," said
Mr Geithner.
The US treasury secretary said the challenge now is to restore business confidence, shrink
unemployment levels, repair the financial sector and expand private investment.
• At Social Front
Vietnam
• Political Front
• Geo-strategic front
• Economic Front
• Vietnam plans to build rice depot to cut losses: report
Vietnam may construct a 4 million metric ton rice-storage depot in the Mekong Delta to
reduce post-harvest losses, Tuoi Tre reported, citing the Ministry of Agriculture and
Rural Development.
The project will cost VND7.62 trillion ($426.5 million), according to the newspaper’s
report. Vietnam loses about 11 percent to 12 percent of the crop after harvesting because
of the nation’s poor warehousing system, the report said.
The world’s second-biggest rice exporter produces more than 38 million tons of rice each
year, exporting 4 million to 5 million tons, the report said. The warehouse system is able
to store just 2 million tons, it said.
• Petro Vietnam to look for oil in Cambodia
Petro Vietnam Exploration Production Corp., a member of state-owned Vietnam Oil &
Gas Group, plans to explore for oil and gas in Cambodia’s Tonle Sap Lake area.
Under the terms of a contract signed with the Cambodian National Petroleum Authority
in Phnom Penh Thursday, PetroVietnam Exploration will do seismic and exploration
work in the northeastern part of the Tonle Sap Lake in central Cambodia, according to an
e-mailed statement from PetroVietnam.
Hanoi-based PetroVietnam Exploration, which will have 100 percent ownership over
Block XV, covering about 6,900 square kilometers (2,664 square miles), can explore for
oil for 30 years and gas for 35 years.PetroVietnam Exploration is also involved in
projects in Laos and Myanmar
• Vietnam to stockpile fertilizer to ensure sufficient supply
28
Vietnam, the world’s second-biggest rice exporter, will stockpile fertilizer and import the
commodity to ensure producers have enough supply for the winter and spring crops.
The government requested state-owned Vietnam Oil & Gas Group keep at least 700,000
metric tons of fertilizer aside for “timely interference” at times of price volatility,
according to a statement on the government’s website Thursday.
Prime Minister Nguyen Tan Dung asked the central bank to ensure enough supply of
foreign currency for imports of fertilizer, the statement said. Dung also said local
producers should operate at full capacity.
Vietnam produces more than 38 million tons of rice each year, Tuoi Tre newspaper
reported Wednesday. The country aims to boost shipments by as much as 49 percent to 7
million tons this year, Deputy Minister of Trade and Industry Do Huu Hao said Aug. 6.
• Vietnam Lifts Ban On Gold Imports To Stabilise Domestic Market
While the IMF and the Reserve Bank of India have been taking up headlines over the first
half of November in terms of Official Sector attitudes to gold, the change in the
Vietnamese government's policy over gold imports illustrates the fact that demand
remains strong at grass roots level in some parts of the world.
It is well-documented that the jewellery sector has been suffering severe strain this year
as demand has almost imploded in some regions in the face of high and volatile prices
and that there have been long periods when scrap return has been more than adequate to
meet what buying there has been.
Investment bars and coins, however have been a different story and have remained
strong, in some cases taking the place of jewellery because of the lower mark-up (and
also partly in lieu of jewellery for melting and fabrication at a later stage).
This, therefore, is a very brief review of the fundamental numbers in the market in an
attempt to put the Vietnamese move into numerical perspective as well as highlighting
the fact that it reflects sustained interest in gold in the region.
Investment bar demand by major investing nation and by quarter, Q1 1999 - Q2 2009;
tonnesThe latest figures from "Gold Demand Trends", published by the World Gold
Council (prepared independently by research house GFMS Ltd and of which the next
edition is due soon) show that Vietnam recorded the world's largest domestic demand for
investment bars in the first quarter of 2008, with almost 39 tonnes of gold bars in the
period, equivalent to 39% of investment bar demand for the quarter. When jewellery is
added into the equation, Vietnamese demand in that quarter was just 8% of the world's
jewellery and investment bar combined, while the lion's share was absorbed by India and
China, who between them took up 39% of total.
With falling equity and property markets, plus inflation that was running at
approximately 25% in the second quarter of 2008, bar + jewellery demand in Vietnam
reached 44 tonnes in Q1 2008 and 37 tonnes in the second quarter. The government
imposed a ban on gold imports in June 2008. The Vietnam Association of Financial
Investors had previously proposed rating the import tax to 19-20% in order to try and
bring down the very heavy gold import level - imports of approaching 43 tonnes were
recorded in the first four months of the year, amounting to approximately $1.2 billion,
and equivalent in value to 50% of Vietnamese imports over the whole of 2007. Although
concerned that imposing such a tax would increase smuggling, the VAFI was prepared to
take the risk in order to reduce the pressure on the trade deficit, which was obviously
expanding rapidly at the time.
29
In the event the government suspended all gold imports as of the fourth week of June
2008 in order to try and control the trade deficit and give some support to the Vietnamese
dong.
Recorded demand for investment bars slipped, although GFMS records in its "Gold
Survey 2009" that the imposition of the import ban in Vietnam was partly responsible for
the surge in imports into Thailand in the second half of 2008 with perhaps up to 30% of
"Thailand's imports finding its way unofficially into Vietnam". The GDT figures for
jewellery and investment bar demand in Vietnam showed a slippage to an average of 18
tonnes per quarter in the second half of 2008 and the first half of 2009. The demand in
these two sectors in Q2 2009 was 22.9 tonnes, equivalent to just 4% of the world total,
As well as the constraint on demand that stemmed from the ban on imports, Vietnam's
reduction in "market share" in the ensuing quarters also reflects the massive increase in
demand for these products in Europe. The LBMA Conference was not the first arena in
which, in the gold market at least, Europe has been described as "the New Asia". Since
the start of 1999, through to the third quarter of 2008, the largest individual country in
terms of investment bar demand was India with the exception of Vietnam once, as
described here, Turkey once (Q1 2003), Japan twice and India once (H2 1999 and Q1
1999 respectively, largely in fear of Y2K). From the third quarter of 2008 onwards,
however, Germany has held pole position as investors hedge against dollar and inflation
risk.
The Vietnamese government has now lifted its import ban with the statement "'The State
Bank of Vietnam will allow gold imports with a volume sufficient to intervene in the
market in order to stabilise the market, combat speculation and prevent an impact on the
interests of the people". This is partly in response to the widening disparity between
domestic and international gold prices, which has been causing a surge in demand for
dollars as demand has increased once more. The shift in trade flows in the coming weeks
will be instructive.
• Social Front
• Death toll from A/H1N1 influenza rise to 41 in Vietnam
Vietnam confirmed that a 16-year-oldgirl in southern province of Kien Giang died of
A/H1N1 influenza, bringing the country's total number of flu deaths to 41, said a report
on the website of the Ministry of Health on Thursday.
The girl is six months pregnant, said the ministry. She displayed flu-like symptoms on
Nov. 3 and bought medicine to treat herself at home.
The patient was admitted to the provincial general hospital on Nov. 7 with high fever.
Her health conditions kept developing worse. She died on Nov. 9. Her sample was tested
positive to the A/H1N1 virus, said the ministry. So far, out of 41 flu deaths recorded in
the country, there have been ten being pregnant, according to the ministry
• Food and shelter needed in Vietnam after floods wash away crops and
homes
Air force personnel provide relief supplies to residents at a flooded area in Vietnam's
central Binh Dinh province. Flash floods and heavy rains from a tropical storm killed 98
after ploughing into central Vietnam.
Caritas says people are in urgent need of food, clean water, shelter, medicine and clothes
following flooding caused by Typhoon Mirinae. The storm hit Vietnam’s southern central
30
coast on 2 November, causing floods that swept away 1,300 homes and submerged
60,000 more in the central and southern parts of the country.
Mirinae’s rains also damaged over 800 school classrooms and 100 medical clinics.
Caritas Vietnam will begin distributing rice, noodles, cloths and blankets to the victims in
these areas beginning 10 November.
Caritas staff say crops were almost totally lost, leaving residents in need of food for at
least the next six months. Over 10,673 hectares of rice fields, 7,579 hectares of farm
products, and 11,553 hectares of corn and sugar-cane were flooded.
Typhoon Mirinae follows previous storms Ketsana in September and Parma in October
that also caused extensive damage. Caritas staff said flood water overflowed makeshift
dams built after the last two storms and was able to wash away many more houses.
Caritas were already planning rehabilitation projects for the areas seriously damaged by
floods cause by typhoons Ketsana and Parma. Caritas Vietnam will run emergency
training courses with the support of Caritas Germany this December because it fears the
country will have to face multiple natural disasters due to climate change.
Vietnam will lose two million hectares of rice fields as the sea level rises unless
protective measures are taken, according its government. Ministers say if the sea level
rises by one metre, 90 percent of land areas in the Mekong Delta region will be
submerged when floods occur and 70 percent of land areas will have high levels of salt in
the dry season.
The Asian Development Bank says a temperature increase of 10C will lead to rice
productivity dropping by 10 percent on average annually. These factors will cause hunger
in Vietnam and the world as Vietnam is the world’s second biggest rice exporter.
Cambodia
• Political Front
•
Thaksin departs Kingdom
Protesters from Thailand’s nationalist People’s Alliance for Democracy demonstrate
Sunday in Bangkok over Thaksin’s visit to Cambodia and statements in an interview
considered by some to be insulting to the king.
FUGITIVE former Thai prime minister Thaksin Shinawatra left Cambodia on Saturday,
leaving in his wake a storm of controversy and allegations of espionage that have plunged
relations between Cambodia and Thailand to their lowest point in years.
Thaksin, who has travelled on passports from nations including Nicaragua and
Montenegro since fleeing Thailand last year to avoid a prison term for corruption,
departed from Siem Reap on his private jet after playing a round of golf with Cambodian
Prime Minister Hun Sen on Friday and meeting with close to 50 members of parliament
from his country’s opposition Puea Thai party.
The stakes of the diplomatic row between Cambodia and Thailand, touched off earlier
this month with the Cambodian government’s announcement that it had appointed
Thaksin an official economics adviser, reached new heights last week with the arrest of
31-year-old Siwarak Chotipong, a Thai national who worked in Phnom Penh for
Cambodia Air Traffic Services Co and is accused of espionage following the alleged theft
of Thaksin’s flight schedule.
Sok Phal, National Police deputy chief and director of the Ministry of Interior’s Central
Security Department, said last Thursday’s expulsion of the first secretary of the Thai
31
embassy in Phnom Penh was a direct result of Siwarak’s case. Thailand responded to this
move by expelling the first secretary of the Cambodian embassy in Bangkok, after both
countries had already withdrawn their respective ambassadors.“[Siwarak] stole the
special flight schedule of Mr Thaksin and handed it to the first secretary of the Thai
embassy,” Sok Phal said, accusing the Thai first secretary, Kamrob Palawatwichai, of
ordering the theft.
Cambodian Ministry of Foreign Affairs spokesman Koy Kuong said Sunday that the
government had received a note from the Thai embassy in Phnom Penh requesting
permission to meet with Siwarak in detention and had forwarded the note to the Ministry
of Interior. The ministry, Koy Kuong said, is likely to accept the request.
Phnom Penh Municipal Court Deputy Prosecutor Sok Roeun said Siwarak is now in
pretrial detention at Prey Sar prison and is being charged under Article 19 of the 2005
Law on Archives, which covers offences related to matters of national defence, security
or public order. If convicted, Sivarak faces a jail term of between seven and 15 years, and
a fine of between 5 million and 25 million riels (US$1,198-$5,990).
In a mass protest against Thaksin’s Cambodia trip, members of the People’s Alliance for
Democracy (PAD) rallied in Bangkok on Sunday afternoon. Bangkok police estimated
that 17,000 protesters gathered for the event on a downtown Bangkok parade ground.
The nationalist PAD said it was also gathering to express outrage at comments that
billionaire Thaksin made in a newspaper interview in which he called for reform of
institutions around Thailand’s revered monarchy.
The issue is sensitive because 81-year-old King Bhumibol Adulyadej – a major force for
stability in the politically divided nation – has been in hospital for the past two months.
National police deputy spokesman Piya Utayo said around 1,500 police officers were
deployed for the rally.Thaksin, who was deposed in a 2006 coup, was thought to be
bound for Dubai on Saturday.
•
Diplomats expelled in row over Thaksin
Cambodia expelled a top Thai diplomat and Thailand reciprocated yesterday, deepening a
huge row over Phnom Penh’s naming of fugitive former Thai premier Thaksin
Shinawatra as an economics adviser.
The tit-for-tat moves came as Thaksin, who was ousted in a 2006 coup and is living
abroad to avoid a jail term for graft, delivered a lecture in the Cambodian capital in which
he accused Thailand’s rulers of “false patriotism”.
“We decided to expel the Cambodian first secretary after Cambodia expelled our first
secretary from the Thai embassy in Phnom Penh,” Thai government spokesman Panitan
Wattanayagorn said. He said Thailand had given the neighbouring country’s diplomat 48
hours to leave.
Thai foreign ministry spokeswoman Vimon Kidchob said it was “necessary to take
similar action” after Cambodia ordered its diplomat to leave Phnom Penh yesterday
afternoon. There was no immediate comment from Cambodia.
Thailand and Cambodia have already recalled their ambassadors from each other’s
capitals in the growing quarrel over Phnom Penh’s appointment of Thaksin, which was
announced last week. Cambodian Prime Minister Hun Sen further angered Bangkok on
32
Wednesday by refusing a request for the extradition of Thaksin to serve a two-year prison
sentence handed down in September 2008 in a conflict of interest case.
Thaksin, a billionaire telecommunications mogul, hit out at the government of Thai Prime
Minister Abhisit Vejjajiva in an address to some 300 members of business and
government at Cambodia’s finance ministry yesterday.
• POLITICS: Cambodia Raises Stakes, Ties with Thailand Plummet
Cambodian Prime Minister Hun Sen is known for his brash and earthy vocabulary even
when, as he did in early April, he talks about himself. "I am neither a gangster nor a
gentleman, but a real man," the politician who has led his country for 25 years said in a
fit of rage.
The target of his ire at the time was Thai Foreign Minister Kasit Piromya, following
comments the latter had made during a parliamentary debate in the Thai capital.
It was Kasit’s second run-in with the Cambodian leader in under a year. In late 2008,
when the former veteran Thai diplomat was in the political wilderness as a speaker for a
conservative, right-wing protest movement, he had called Hun Sen a "thug" during a
speech at a public rally.
If the new Thai government, formed under a cloud of controversy last December, was
hoping that Hun Sen would move on from such moments, then the current war of words
between the two countries suggests otherwise.
"The Thais seem to have forgotten that Hun Sen has a very good memory. He does not
forget easily," a South-east Asian diplomat from a regional capital told IPS on the
condition of anonymity. "He unearths details and history he knows well to go after those
who criticise him."
But the current war of words between Cambodia and Thailand has degenerated into
personal insults and a trading of charges about interfering into each country’s judicial and
domestic affairs. Hun Sen raised the stakes this week in an increasingly volatile
relationship between the two South-east Asian kingdoms by targeting his Thai
counterpart, Abhisit Vejjajiva, in a verbal barrage. Besides words, Phnom Penh also
rejected a request by Bangkok on Wednesday for the extradition of ousted Thai prime
minister Thaksin Shinawatra, who arrived in Cambodia on Tuesday to begin his new role
as Hun Sen’s economic advisor. Thaksin, whose popular elected government was turfed
out of power in a 2006 military coup, has been living in exile to avoid a two-year jail
term after a Thai court found him guilty in a conflict-of-interest case.
To goad the Abhisit administration, Hun Sen welcomed Thaksin with warm hugs and
handshakes, and offered his own villa in Phnom Penh for the fugitive former Thai
premier to stay in. Bangkok has not fallen for Phnom Penh’s bait, for now. Even though
it bristles at such hospitality and the verbal salvos fired by Hun Sen, the Thai government
is trying to stay above the fray, offering statements that appear calm and diplomatic.
"The government is stressing that the problem between both countries is still a bilateral
issue," Thani Thongphakdi, Thai foreign ministry’s deputy spokesman, told IPS. "We
want to see a positive sign from Cambodia that gives precedence to bilateral ties over
personal relationships." Yet at the same time, the Thai government is taking a tougher
line towards the range of ties it maintains with its eastern neighbour. "We are reviewing
existing agreements, existing cooperation and future cooperation between the two
countries," Thani revealed. "Everything is on the table." Bangkok’s unilateral actions
33
against Cambodia has already seen the Thai ambassador in Phnom Penh withdrawn and
Thailand revoking a memorandum of understanding between the two countries to explore
oil and gas reserves in the Gulf of Thailand.
It followed Hun Sen’s tongue-lashing that targeted Abhisit. "People should know that
when I was starting my political career, the Thai prime minister (Abhisit) was still a child
running around, playing," Hun Sen told Cambodian journalists on Sunday, the transcripts
of which IPS has seen.
"If Abhisit is so sure of himself, then he should call an election. ‘What are you afraid of?
Is it that you are afraid you will not be the prime minister?’" Hun Sen continued, driving
home his current achievement as South-east Asia’s longest-standing premier, as opposed
to Abhisit, who has been in office for less than a year.
The 57-year-old Hun Sen has been Cambodia’s premier for 25 years, a period where he
has not shied from revealing his authoritarian streak, using a mix of violence, intrigue and
verbal attacks to cling to power. His journey to power began on the economic and social
fringes of the poorer Cambodia, including a short stint when still a teenager as a soldier
for the genocidal Khmer Rouge in the later 1970s.
The 45-year-old Abhisit hails from the opposite end, being born into wealth, enjoying a
British education and feeling at home among Thailand’s patricians. He formed a coalition
government after a controversial court ruling last December saw the collapse of the
elected government, paving the way— through a combination of military influence and
cash enticements to broker a deal—to secure a parliamentary vote than a win at a general
election. Hun Sen’s penchant for dipping into his country’s history to take on the Abhisit
administration is also threatening to expose a darker side of Thailand’s relationship with
its poorer and weaker eastern neighbour.
To counter Bangkok’s current charges that Phnom Penh is interfering in Thailand’s
internal politics and judicial system by rolling out the welcome mat for Thaksin, Hun Sen
retorts by reminding the Thais about the hospitality they offered to Khmer Rouge leaders
like Khieu Samphan and Nuon Chea, now about to face justice in a United Nations war
crimes tribunal.
Hun Sen’s current anti-Abhisit rhetoric may not be the isolated views of Cambodia’s
leader but may find resonance among its people, added Fawthrop. "The Thai-Cambodian
relationship has to be looked at in a historical context. The Cambodians feel a huge sense
of grievance."
• Economic Front
• Cambodia gets further boost from APEC poll
CAMBODIA has the second-strongest case for inclusion in the Asia Pacific Economic
Cooperation forum (APEC), behind only India, according to an informal poll of business
leaders from member countries in Singapore on Saturday.
The South Asian economic powerhouse was rated as having the strongest case for
inclusion of the dozen nations that are understood to have expressed an interest in joining
APEC when a moratorium on new members expires next year.“Cambodia should be a
member; it deserves to be,” said Dr Donald Gordon, executive director of The Riley
Institute in the United States.
Six other countries are also viewed as having a strong case – Laos, Myanmar, Macau,
Mongolia, Pakistan and Sri Lanka.Corporate heads from APEC’s current 21 member
34
economies were asked to rate these aspirants according to which they felt had the best
credentials.
India was widely expected to poll the top spot, as its huge and rapidly growing economy
is viewed by most businessmen in the region as being essential to the further
development of APEC.Some business leaders felt that voters might turn away from
Cambodia due to the ongoing dispute with Thailand over the appointment of former Thai
premier Thaksin Shinawatra as an economic adviser to Prime Minister Hun Sen.
Voters said Cambodia had a strong instrinsic right to be a member of APEC since it has a
coastline open to the Pacific, it is already a member of the WTO and ASEAN, and, most
importantly, it has an open trade policy of the kind that appeals to APEC members.
• Social Front
• Progress against HIV at risk
CAMBODIA is considered one of the few success stories in the global fight against
AIDS. HIV is on the decline: More than 2 percent of adults were affected in 1997; a
decade later, HIV prevalence is 0.8 percent.
According to UNAIDS, “Cambodia provides evidence that well-focused and sustained
prevention efforts can help reverse an HIV epidemic.”
Antiretroviral therapy is currently provided to around two-thirds of those who need it, up
from 14 percent in 2004. Cambodia is also praised – and rightly so – for its progressive
AIDS law protecting people living with HIV from discrimination. Those are impressive
accomplishments.
Yet, human rights abuses against populations particularly vulnerable to HIV infection
threaten the government’s success. The positive achievements of government health
authorities and their partners have been outmatched in the past year by the negative
actions of the police, Ministry of Social Affairs and municipal authorities; so far, health is
losing. The real casualties have been among the most marginalised of Cambodians: those
caught up in street sweeps, detained or forcibly evicted from Phnom Penh.People
considered “undesirable” – the homeless, sex workers, drug users, street children – are
regularly arrested and detained by police and Social Affairs staff in advance of national
holidays or visits by foreign dignitaries. Many people living with HIV are caught up in
these campaigns. In May, Human Rights Watch talked to one homeless woman who was
detained by Daun Penh district police during the ASEAN-EU foreign
ministers meeting. When she asked a police officer to return her confiscated HIV
medicine, he replied: “You complain a lot! Jump into the truck!”
In the leadup to Phnom Penh’s annual water festival earlier this month, similar detentions
took place. The deputy governor of Daun Penh district claimed that sex workers were
arrested for HIV-prevention purposes, explaining: “We don’t want to see the boat racers
bringing diseases such as HIV/AIDS back to their wives.”
People who use drugs, and particularly those who inject, are another group at risk – both
for HIV infection and police abuse. The number of people who use drugs in Cambodia is
hard to determine, but it is thought to be between 10,000 and 20,000; at least one in four
people who inject drugs are estimated to be HIV-positive. Instead of addressing either the
issue of drug use or HIV with evidence-based measures, however, the mainstay of the
government’s strategy has been detention.
Cambodia has established 11 drug detention “rehabilitation” centres around the country.
The “treatment” they provide? Forced physical exercises, military drills and hard labour.
35
People in detention are recognised by UNAIDS as being at a heightened risk of HIV
infection, but in addition to failing to provide effective drug dependency treatment, the
centres provide neither HIV prevention nor treatment. These centres should be shut down
and voluntary, in-community drug-dependency treatment developed in their place.
Another example of government policies undermining health goals and violating the HIV
law was the forced eviction of some 40 families from Borei Keila in June to a de facto
AIDS colony on the outskirts of Phnom Penh.
Protests by Cambodian and international HIV and human rights groups generated
scrambled visits by UNAIDS and the national AIDS authority, but the basic situation is
unchanged: Those who were forced to move remain far from jobs and isolated from
medical facilities and support services. Although local nongovernmental organisations
have a long-term plan to improve housing conditions and begin income-generating
activities, the situation for these families remains precarious.
In June 2006, the Cambodian government committed itself to achieving ambitious
national targets for providing universal access to HIV prevention, treatment, care and
support by 2010. Now, three years later, a UN delegation has come to Phnom Penh to
review what progress has been made. The delegation should pay close attention to the
Cambodian government’s failure to respect, protect and fulfil the human rights of those at
highest risk of HIV. The actions of the police, Ministry of Social Affairs and municipal
authorities should be particularly scrutinised.
Laos
• Political Front
• Laos, Japan hold bilateral talk to strengthen co-operation
A bilateral talk between Laos and Japan was held on 7 November in Tokyo to further the
friendly relation and co-operation. The talk was co-chaired by Prime Minister Bouasone
Bouphavanh and his Japanese counterpart Yukio Hatoyama.
At the talk, the two leaders expressed their satisfaction over the friendly relations and cooperation made in the past few years in the bilateral and international frameworks.
Prime Minister Bouasone Bouphavanh expressed congratulations to the Japanese
government for hosting the first Japan-Mekong Summit, to the Japanese government and
people for offering the Official Development Assistance (ODA) to Laos which is held as
a big contribution to the social-economic development plan of Laos.
Japanese Prime Minister Yukio Hatoyama expressed congratulations to the Lao
government for her best environmental preservation and her plan to expand the green
areas to cover 65% of the total forest areas in the country by 2015 and to 70% by 2020.
These plans will be supported by the Japanese government in order to build Laos and
other Mekong countries as green areas.
Prime Minister Yukio Hatoyama also confirmed to encourage Japanese investors and
tourists to Laos. Laos and Japan have established the diplomatic relations since 5 March,
1955 and by 2010 the two sides will celebrate the 55th anniversary of diplomatic
relations by exchanging the visit of high-ranking officials.
On this occasion, an MoU to provide US$ 1 million from the Workwide Support for
Development of Japan to Laos and a one-billion yen loan agreement were signed.
PM Bouasone Bouphavanh also invited the Japanese Prime Minister to visit Laos.
36
• Economic Front
• Chinese companies support Laos in world expo
Two private Chinese companies have provided US$40,000 of financial support for the
Lao government for the participation in the World Expo 2010, to be held in Shanghai,
China.The two companies - the Xi an Aircraft International Cooperation of China and
the China CAMC Engineering Company Limited, each presented US$20,000 to Deputy
Prime Minister Thongloun Sousilith, in a ceremony held at the Ministry of Foreign
Affairs, on 10 November.The fund was handed over by President of the Xi an Aircraft
International Cooperation of China, Mr. Jiang Jianjun, and Vice President of the China
CAMC Engineering Company Limited, Mr. Wang Bo.
Dr. Thongloun who is also Minister of Foreign Affairs has expressed his heartfelt thanks
to the donors for the support for Laos in the participation in the World Expo 2010.
He continued that the participation of Laos was very important to enhance cooperation
and trade with other countries, especially to further cooperation between the two
countries Laos and China.
The Xi an Aircraft International Cooperation of China has so far supported the
development of the Lao Airlines, by giving loan for the purchase of four M 60 aircrafts
and the China CAMC Engineering Company Limited is a construction company
operating in Laos and overseas.
• Japan grants US$ 16.6 million Budget Support Loan to Laos
An agreement for the Budget Strengthening Support Loan worth up to 1.5 billion
Japanese Yen (approximately US$16.6 million) for the Lao PDR was signed in Tokyo on
November 9. The signing ceremony took place at the headquarters of the Japan
International Cooperation Agency (JICA) in Tokyo and the agreement was signed by Mr.
Kenzo OSHIMA, JICA Senior Vice President and Mr. Sithong CHITNHOTHINH,
Ambassador of the Lao PDR to Japan. The budget support has been agreed as Japanese
ODA Loan by Mr. Katsuya Okada, Minister for Foreign Affairs of Japan, and Dr.
Thongloun Sisoulith, Deputy Prime Minister and Minister of Foreign Affairs of the Lao
PDR, on November 7, during the visit of Lao Prime Minister Bouasone Bouphavanh to
Japan to attend the Mekong-Japan Summit Meeting. The objective of the loan is to
promote sustained economic growth and to alleviate poverty in Laos by promoting the
Government s efforts in reforming public finance management and private sector
development policy and its institution through direct support to the state budget. The
support will be implemented in close coordination with the Poverty Reduction Support
Operation (PRSO) 5, led by the World Bank. These supports for market economy are
expected to contribute much to the realisation of Laos s goals such as to move itself
from the UN s list of least developed countries by 2020 and to get an accession to the
World Trade Organisation
• At Social Front
•
Swine flu comes back to Laos with six new cases
Swine flu made a come back to Laos. The Ministry of Public Health said last Tuesday
that six people in Attapeu province had this infectious disease and this deadly disease
came at a time when this province was still suffering from the effects of typhoon Ketsana.
This ministry also said that another lot of 11 people of this southern province were
suspected of suffering from A (HINI) and to clarify the situation their blood samples had
been brought to Vientiane for examination.
37
Dr Inpanh Inthirath, Deputy Head of the Public Health Service of Attapeu province, told
KPL News yesterday that an Attapeu province-based medical team visited an area where
there was an outbreak of swine flu, an ethnic school in Samakhisay district.
The medical team detected eight suspected cases and took their blood samples and sent
them to Vientiane. However, the team confirmed six genuine cases and some of them
were on the recovery path.
According to the latest update, the medical team found another 11 suspected cases of
swine flu and it had sent their blood samples to Vientiane.
After typhoon Ketsana we were faced with the problem of outbreaks of various
diseases, such as water-borne diseases, diarrhoea and swine flu, said Dr Inpanh.
He also said that almost all the affected students at the ethnic school came from districts
that were close to the Vietnamese and Cambodian borders.
In order to control the spread of swine flu the Ministry of Public Health announced the
temporary closure of schools in the affected areas. With the addition of confirmed cases
of swine flu from Attapeu province the country s total number of cases edged up to 275
and with two deaths.Swine flu had been detected in 11 provinces, such as, Vientiane
Capital, Savannakhet, Borikhamsay, Khammouane, Attapeu, Saravane, Champassak,
Luang Prabang, Xiengkhouang, Bokeo and Vientiane provinces.
The Ministry of Public Health said that as the swine flu virus thrived in cool weather and
during such a time this disease was likely to be more widespread than ever and so
Laotians should take extra precautions during the coming height of the cool weather in
Laos.
Brunei
• At political Front
• At Economic Front
• Address Climate Change To Attain Sustainable Development
His Majesty the Sultan and Yang Di-Pertuan of Brunei Darussalam yesterday attended
key meetings on climate change, US-Asean leaders and the Second Retreat Session as the
17th Apec Economic Leaders Meeting ended in the city-state.
His Majesty stressed that in order to achieve sustainable development, consideration must
be given to climate change efforts.
The theme of discussion for the Second Retreat was "Sustaining Growth" which focussed
on the global economic crisis, climate change and inclusive, balanced and sustainable
growth.His Majesty shared with other leaders of Brunei's efforts in regional conservation
such as the Heart of Borneo and the Coral Triangle Initiative.
His Majesty again stressed the need for sharing of experiences, best practices and
technical cooperation to develop more efficient use of energy and explore alternative
energy.
His Majesty encouraged both sides to cooperate on energy security and climate change
and expressed confidence that such initiatives will support government visions for energy
efficiency.His Majesty also expressed support for more inter-faith dialogues and stated
that it has helped promote friendship and understanding between our people.
Earlier, His Majesty welcomed the complimentary efforts undertaken in the G20 and in
Asean to ensure the global economy will continue to recover. To achieve inclusive
38
growth, His Majesty encouraged the sharing of experiences to improve the development
of human resources, social security and to strengthen small and medium businesses.Later
in the afternoon, His Majesty and the Apec leaders attended the Asean-US Leaders
Meeting at Hotel Shangri La.
During the meeting, His Majesty expressed appreciation to the United States in
revitalising its policy towards Asia, particularly the relationship with Asean.
His Majesty also welcomed the US proposal in establishing the Asean-US Eminent
Group and expressed support in developing the Plan of Action for Asean US Dialogue
Relations for 2011 to 2015 towards enhancing relations in trade, energy, environment as
well as people-to-people exchanges.In the evening, His Majesty left Singapore. Before
departure a doa was read by the State Mufti.Present at the Changi International Airport to
bid farewell to His Majesty was Lim Boon Heng, Minister at the Prime Minister's Office
in Singapore.
The 18th AELM will take place in Japan next year.
"Asean stands ready to be a reliable partner of the US in tackling the various global and
regional challenges, whether it is climate change, the Doha Round or counter terrorism
and security issues," said the current chair of the 10-member Association of Southeast
Asian Nations (Asean), Abhisit Vejjajiva, who spoke at a press conference with US
President Barack Obama, following the conclusion of the inaugural Asean-US Summit.
President Obama, speaking beforehand, told reporters: "During our meeting, we talked
about how the United States and Asean worked together as partners within this region
and throughout the world. We discussed the importance of the challenge of climate
change and working together to support the G20 efforts to promote a sustained and
balanced global economic recovery."
A joint statement was duly issued about their pledge to increase collaboration and for the
establishment of an Asean-US Eminent Persons Group - a move that is already being
seen as a positive support for enhanced Asean-US cooperation in addressing regional and
international issues.
During the meeting, it was learnt that President Obama stressed the US policy of
enhancing engagement with Asean, which it regards as a key partner in the promotion of
peace, stability and prosperity in the Asia-Pacific region that was universally welcomed
by the 10 Asean leaders of the high-level dialogue.The leaders also reaffirmed the
importance of bringing the Doha Round to a successful conclusion in 2010, and
supported the G20 statement in fighting protectionism. The selection of the Philippines
being chosen as the country coordinator for Asean-US Dialogue Relations from July
2009 to July 2012 was also endorsed by the leaders and requested it to lead the drafting
of the next five-year Plan of
• HM hails G20, Asean steps for economic recovery
HIS Majesty Sultan Hj Hassanal Bolkiah Mu'izzaddin Waddaulah, the Sultan and Yang
Di-Pertuan of Brunei Darussalam yesterday welcomed the complementary efforts
undertaken in the G20 and in Asean to ensure that the global economy continues its
recovery. To achieve inclusive growth, His Majesty encouraged the sharing of
experiences to improve the development of human resources, social security and to
strengthen small and medium businesses.
His Majesty and other Apec leaders were attending the Second Retreat Session at the
Istana.The theme of discussion for the Second Retreat was "Sustaining Growth" which
39
focused on global economic crisis, climate change and inclusive, balance and sustainable
growth.
His Majesty stressed that in order to achieve sustainable development, consideration must
be given to climate change efforts. The monarch shared with other leaders the efforts
Brunei Darussalam has taken in regional conservation such as the Heart of Borneo and
the "Coral Triangle Initiative".
His Majesty again emphasised the need for sharing of experiences, best practices and
technical cooperation to develop more efficient use of energy and explore alternative
sources. His Majesty was part of the final round of Apec talks that resulted in a positive
declaration by the Asia-Pacific leaders. The declaration, conveyed by Prime Minister of
Singapore Lee Hsien Loong, highlighted the commitment by Apec leaders to establish a
new growth paradigm.
According to the final statement, the Apec is looking to achieve this through balanced
growth, structural reforms; and inclusive growth by broadening access to economic
opportunities and building resilience to economic shocks, as a result of compatible global
efforts to protect the environment and mitigation of climate change.
This was followed by a firm intent by Apec to have a connected Asia-Pacific in the 21st
century, in which accelerating Regional Economic Integration (REI) remains a key issue.
Apec leaders also mentioned strengthening economic and technical cooperation, with
capacity building as part of reforms that will facilitate inclusive growth and REI
continuing as a priority.With this in mind, Apec is open to ongoing efforts that are aimed
at developing a more strategic, goal-oriented and multi-tier approach toward capacity
building. This is also part of the Apec efforts to raise capacity building as priorities shift
to meet new challenges that may arise.
After the Apec leaders' meeting, His Majesty and other Asean heads of state attended the
Asean-US Leaders' Meeting, where the monarch expressed appreciation to the United
States in revitalising its policy towards Asia, particularly its relationship with Asean.
His Majesty also welcomed the US proposal for establishing the Asean-US Eminent
Group and expressed support for developing the Plan of Action for Asean-US Dialogue
Relations for 2011 to 2015 towards enhancing relations in trade, energy, environment as
well as people-to-people exchanges.
In the morning, His Majesty and other Apec leaders attended a meeting on climate
change. Also present at the meeting, which was chaired by Prime Minister of Singapore,
was L L Rasmussen, Prime Minister of Denmark as the President of the United Nations
Framework Convention on Climate Change, who briefed the leaders on the current
progress on climate change.In the evening, His Majesty left Singapore after attending the
17th Apec Economic Leaders' Meeting. Present at the Changi International Airport to bid
farewell to His Majesty was Singaporean Minister at the Prime Minister's Office Lim
Boon Heng.
40
Report No.
South East Asia
Tatheer Zahra Sherazi
14 November to 20 November 2009
(Outline)
Summary
Indonesia
•
•
4
Political front:
Indonesia drafts action plans to handle troubled migrant in Malaysia
41
7
• Economic Front
7
• Pakistan-Indonesia PTA to be finalised by year-end
• ADB To Support Stronger, More Liquid Capital Markets in Indonesia
• Indonesia, Australia eying expansion of business, trade
• Social front
10
• Indonesia may deport Sri Lankans on boat.
• Five Million AIDS Patients in Indonesia
• Floods submerge thousands of houses in Riau
• Corruption scandal tests Indonesia’s Yudhoyono
Malaysia
• Political Front
13
• Economic Front
• After deviations, economists emphasise on people for growth
• Malaysia to decide on free trade formats
• Malaysia GDP could hit 6% by 2012, says World Bank economist
• Koh: Use multi-racial and social connections to boost business
• Social Front
19
• Malaysia defends slide in global graft ranking
Philippine
• Political Front
20
• No favourites yet in Philippine polls
• Philippine administration party chooses official candidates for 2010 elections
• Economic Front
22
• Economic growth picked up in Q3 -- NEDA
• Philippines seeks $ 5 bn natural gas investment
• APEC urges new growth model, climate pact progress
• The Philippines Interested in Investment in Syria
• Social Front
25
• Troops foil deadly attack in S Philippines
• Islamic group faces charges for kidnapping missionary priest in Philippines
• Philippine floods spur move to high-rises: industry (AFP)
Thailand
28
• "Yellow Shirt" rally against ousted Thaksin in Bangkok
• Thailand's PAD rally against Thaksin, Hun Sen kicks off in Bangkok
• Thousands rally in Bangkok over Thaksin's remarks on monarchy
• PAD rally for the country, against Thaksin
29
• Thai minister hopes to prove claim over border temple
42
•
•
•
•
•
•
•
Economic Front
30
Politics the main risk factor to 2010 economy
For 2010, GDP growth is projected to be about 3.2 per cent, he said.
Rice import to boost supplies, check prices
Thai Recession Probably Eased Amid Global Recovery
Vietnamese economy poses no threat to Thailand
Thailand and Cambodia are signatories to an investment protection agreement,
to protect each other's private businesses.
Singapore, Thailand
Hmong Refugee Crisis in Thailand, Laos Deepens
•
•
Singapore
• Political Front
• Economic Front
38
• Singapore's exports down 6.1% in October compared to a year ago
• Singapore and Finland hope to boost economic and social ties
• Singapore's growth forecast for 2009 maintained at -2.5 to -2.0%
• Asia urges Obama to refocus on free trade
• S'pore, Philippines satisfied with close & co-operative relationship
• 3 lessons for S'poreans to learn from the way downturn was handled, says
Shanmugam
• Social Front
43
• PM Lee confident Buddhist community will help keep society harmonious
Vietnam
• Political Front
• Economic Front
44
• Vietnam-Kuwait eco. relations flourishing -- ambassador
• Vietnam invites investors
• India may import rice from Thailand, Vietnam
• Kuwaiti productive participation in charity Bazaar in Vietnam
• Social Front
Cambodia
• Political Front
48
• ASEAN and the Cambodia-Thailand row
• Economic Front
49
• Thailand and Cambodia are signatories to an investment protection agreement,
to protect each other's private businesses.
• Social Front
Laos
• Political Front
50
• Laos, Vietnam exchange lessons on local administration
• Draft law on State investment discussed on third day of NA session
43
•
•
•
Foreign Relations
Economic Front
Vice President visits Xiengkhouang to see socio-economic development
51
Summary
At political Front
•
Philippine
Philippine presidential elections to be held next May are wide open and there is no
clear favourite despite the son of revered former President Cory Aquino taking a strong
lead in opinion polls. Nominations open next week for the election and Senator Benigno
"Noynoy" Aquino is likely to be among the early ones to file. Others in the fray should
include billionaire businessman Senator Manuel Villar, former President Joseph Estrada
and administration candidate Defence Secretary Gilberto Teodoro.
In an apparent show of force, some 3,000 members of President Gloria Arroyo's
political party gathered at the Philippine International Convention Center on Thursday to
formally declare former defence secretary Gilbert Teodoro and game show host Edu
Manzano as the administration party's official candidates for president and vice president,
respectively, for the May 2010 elections.
•
Thailand
44
Thousands of people on Sunday attended a rally here to protest recent remarks by
fugitive former Prime Minister Thaksin Shinawatra concerning the monarchy. The rally
was organized by the People’s Alliance for Democracy, loose coalition of groups
opposed to Thaksin and his political allies, and the New Politics Party.
The PAD protesters wearing yellow and pink shirts and waving national flags gathered at
a large field on Sunday under the theme of expressing people’s power to protect ‘‘Nation,
Religion and Monarchy.’’ Thaksin recently gave an interview to Britain’s Times
newspaper in which he said that Crown Prince Maha Vajiralongkorn might not be as
popular as King Bhumibol Adulyadej, but he will have fewer problems because ‘‘the
palace circle will be smaller.’’
At Economic Front
• Indonesia
The Ambassador of Republic of Indonesia, Ishaq Latuconsina, has said that Preferential
Trade Agreement (PTA) between Pakistan and Indonesia will be finalised by the end of
this year to harness the trade potentials between the two Islamic countries. The LCCI
President said that although the trade between Pakistan and Indonesia has been gradually
growing from $645.4 million in 2004-2005 to $1254 million in 2008 but it is still at a
very low level in view of the size of the markets of the two countries.
The Asian Development Bank (ADB) is providing further financial assistance to
Indonesia to support its drive to develop deeper, more liquid capital markets as part of
ongoing financial reforms to strengthen the economy. Indonesia has a well-developed and
well-regulated banking sector that accounts for about 80% of the financial industry’s
assets. However its lending capability is constrained by the short- term maturities of its
assets, and the nonbank sector, including equity and debt markets, remains relatively
small and illiquid.
• Malaysia
The Malaysian government would decide whether to pursue its Free Trade Agreement
(FTA) talks with the United States or engage in the Trans-Pacific Partnership (TPP)
negotiations, a Malaysian official said here on Wednesday.
Malaysia’s gross domestic product (GDP) may rise to 6% by 2012, driven by
Government reforms and as the global economy continues to recover, a World Bank
economist said.
• Philippine
Filipino Energy Secretary Angelo Reyes says the country needs $ 5 bn in investment in
its natural gas sector in the next five years. Reyes made his observation when talking to
investors, maintaining the infusion of capital was necessary to decrease the country's
dependence on imported fuel for power generation and public transport.
Authorities in the Philippines have brought criminal charges against several members
of the separatists Moro Islamic Liberation Front, and expect to add more charges, in
connection with the kidnapping of Father Michael Sinnott. Father Sinnott, a 78-year-old
45
missionary priest from Ireland, was seized by unidentified gunmen in early October. He
was released unharmed a month later, as government forces closed in on his captors.
No crisis or slowing down for Manila rich, famous – Synovate poll While most
economies and peoples worldwide are going through hard times, there’s no stopping
Manila’s rich and famous from enjoying the good life, a new survey shows. “Affluent
consumers in Manila continued to spend despite the recession in the past year,” according
to the findings of the 2009 PAX survey conducted by market intelligence firm Synovate
Ltd. The findings were released Tuesday.
• Thailand
Abhisit acknowledged that the domestic political situation remained the top challenge
as his administration tackled the economic situation.Rising energy and food prices as
well as environmental issues are other obstacles, he said.
Plaiphol agreed fears of increased political instability would distract the government's
attention from economic issues.If the political situation worsened, consumer confidence,
tourism and other economic sectors would be affected, he said.
• Brunei
The Vietnamese economy poses no immediate threat to Thailand, which has healthy
investments in that country, says the Thai ambassador in Hanoi. Nor was Thailand's
status as the world's top rice exporter under threat from Vietnam.
He said Vietnam exported about 5 million tonnes of rice last year while Thailand
exported 8-9 million tonnes.Thai rice is more expensive because of its higher quality
especially the world famous Hom Mali, while Vietnam exports cheaper varieties.
Thailand is ranked 9th among foreign investors in Vietnam. Investment is concentrated in
agri-business, cement, real estate, and motorcycle parts.
• Singapore
Singapore, which raised its 2009 GDP estimate in October, said yesterday its economy
will grow 3 percent to 5 percent in 2010 after shrinking as much as 2.5 percent this year.
Thailand may report Nov. 23 that its recession eased last quarter
At Social front
•
Indonesia
Indonesia is threatening to deport hundreds of Sri Lankan asylum seekers who have been
refusing to leave a boat docked at a Javanese port until they are granted refugee status.
Some 247 ethnic Tamil migrants, led by an alleged people smuggler called
Kulaendrarajah Sanjeev, have been engaged in the stand-off since they were intercepted
on their way to Australia on October 11
Indonesian government is drafting action plans following the plan of Indonesia and
Malaysia governments to establish a joint task force in handling troubled Indonesian
workers working in Malaysia, Indonesian minister said in an official statement sent to the
media on Sunday.
Health experts on AIDS reported on Monday there are five million patients in 300
cities and districts in Indonesia. According to the health center IMAI, this number is an
46
estimate of the HIV virus cases who went to hospitals, which are only 10 percent of the
true number of carriers in that country. IMAI Chief, Ronald Jonathan, stated that reported
cases will be between 93 to 130 thousand next year, which is only the tip of the iceberg
"five or 10 percent of HIV carriers in Indonesia". Jonathan said that the archipelago had
about 18,442 HIV positive.
Detailed News Monitoring Report
Indonesia
•
Political front:
•
Indonesia drafts action plans to handle troubled migrant workers in
Malaysia
Indonesian government is drafting action plans following the plan of Indonesia and
Malaysia governments to establish a joint task force in handling troubled Indonesian
workers working in Malaysia, Indonesian minister said in an official statement sent to the
media on Sunday. "We can and must settle the remaining problems as soon as possible.
While the legal process is proceeding in Malaysia, we will reset regulations regarding the
migrant workers placement so as to guarantee that we would depart only the qualified
workers, "Indonesian Manpower Minister Muhaimin Iskandar said in the statement.
Indonesia's initiative to draft the action plan was following the agreement of Indonesian
minister and his Malaysian counterpart to establish a joint task force that was set up
during Indonesian minister's recent visit to Malaysia. The plan to reset the requirement
for Indonesian workers wishing to work in Malaysia is one of action plans the minister
would take, the statement said. The minister said that the joint task force establishment
is aimed ultimately at providing protection to Indonesian workers who were abused by
their Malaysian employers. In the meantime, trials against Malaysian violent
employers and Indonesian workers committed in wrongdoings are underway in
Indonesia's neighboring country. Regarding the plan to establish such a task force,
Muhaimin has ordered regional governments, police, immigration and Indonesian
placement agencies to close down the departure points of Illegal Indonesian workers to
enter Malaysia. The manpower ministry has identified that there are, at least, 51 places
used by Indonesian illegal workers to enter Malaysia. The minister said that closures
on those points are essential prior to the revocation of Indonesia's moratorium to send
workers to Malaysian since June this year. The moratorium is expected to be lifted if
the result of the upcoming talks between Indonesia and Malaysian agencies satisfies
Indonesia, the statement said as reported by the Detik.com. The discussion is scheduled
to take place from November 20 to 21 in Malaysia's capital city of Kuala Lumpur. There
are 2.2 million Indonesian workers working in Malaysian at the moment, according to the
data disclosed by the ministry. Part of them are working there without valid documents
issued by Indonesian government. Earlier reports said that many Indonesian workers
fell victims to the violent acts of their Malaysian employers. Some of them suffered from
47
permanent injuries, some even returned to their hometown in coffins due to the violence
they received from their violent employers.
• Economic Front
• Pakistan-Indonesia PTA to be finalised by year-end
The Ambassador of Republic of Indonesia, Ishaq Latuconsina, has said that Preferential
Trade Agreement (PTA) between Pakistan and Indonesia will be finalised by the end of
this year to harness the trade potentials between the two Islamic countries.
He was speaking at the Lahore Chamber of Commerce and Industry on Friday. LCCI
President, Zafar Iqbal Chaudhry, and Executive Committee Member Mian Zahid Javaid
also spoke on the occasion.
The Ambassador said that negotiations on PTA were well on way and the sixth and final
round of talks would be held in Jakarata on December 29, 2009, as the fifth round was
held in Islamabad. The Ambassador also stressed the need for exchange of subject
specialists and sector specific experts so that both the countries are able to learn more and
more from each other’s experiences.
Ishaq Latuconsina said that sharing of experiences had no match when we talk of any
specific product or trade with any country. Hence Pakistan and Indonesia must share their
experiences in the larger interests of the business community in the two countries. Both
the LCCI President and the Indonesian Ambassador also discussed modalities to hold
single country exhibitions in each other’s country so that the bilateral trade volume could
be increased.
Speaking on the occasion, the LCCI President Zafar Iqbal Chaudhry said that Pakistan
and Indonesia are the two most populous countries of Muslim Ummah. These two
countries together have a population of over 410 million and constitute about 27 percent
of the total Muslim population of the world. Both the countries are bonded together by
old historical links and enjoy cordial relations based on commonality of religion. The
LCCI President said that although the trade between Pakistan and Indonesia has been
gradually growing from $645.4 million in 2004-2005 to $1254 million in 2008 but it is
still at a very low level in view of the size of the markets of the two countries. staff report
• ADB To Support Stronger, More Liquid Capital Markets in Indonesia
The Asian Development Bank (ADB) is providing further financial assistance to
Indonesia to support its drive to develop deeper, more liquid capital markets as part of
ongoing financial reforms to strengthen the economy.
The ADB Board of Directors today approved a $300 million loan for the second phase of
the Capital Market Development Program Cluster. The proceeds cover the cost of policy
reforms and to provide budgetary support for the government’s fiscal stimulus program in
response to the global economic crisis. The program, which underpins the government’s
medium-term financial reform agenda, is designed to help unlock the potential of the
capital markets to provide long- term funding for infrastructure and other critical
development needs.
Indonesia has a well-developed and well-regulated banking sector that accounts for about
80% of the financial industry’s assets. However its lending capability is constrained by
the short- term maturities of its assets, and the nonbank sector, including equity and debt
markets, remains relatively small and illiquid.
48
In response, the program is supporting wide-ranging policy reforms designed to improve
information disclosure and surveillance, strengthen governance and investor protection,
boost financial intermediation, and diversify financial products, in order to create more
resilient and efficient capital markets.
“Together with broader economic reforms in Indonesia, the reform of capital markets will
contribute to financial sector stability, to productivity growth and employment
generation, and to poverty reduction,” said Valliyoor Subramanian, Principal Financial
Sector Specialist (Capital Markets) in ADB’s Southeast Asia Department.
Under the second phase of the program, actions have been taken to increase the range of
treasury bill maturities on offer, to establish a taskforce to examine options for an
integrated regulator for the financial sector, to initiate the development of a Capital
Market Master Plan for 2010-2014, to establish an investor protection fund, to introduce
hedging instruments such as stock options and index-based futures, and to set up an
ASEAN equities trading board with five other participating countries.
Indonesia’s economy has expanded strongly over the past decade. However, the global
economic crisis - which saw an outflow of foreign investor funds and international credit
dry up- has highlighted the need to expand domestic sources of financing to preserve
growth. Strengthening the capital markets will provide long term funds to aid growth and
development, provide a safe and stable environment for investors, and help reduce debt
refinancing risks.
As full capital markets reform will take time, ADB and other development partners, such
as Japan International Cooperation Agency and Australian Agency for International
Development, are planning technical assistance to support the continuation of reform
measures beyond the end of ADB’s two-stage program, including policy actions laid out
under a post-program monitoring framework through to 2011.ADB’s loan, from its
ordinary capital resources, has a 15-year term, including a grace period of three years,
with interest determined in accordance with ADB’s LIBOR-based lending facility.
• Indonesia, Australia eying expansion of business, trade
Indonesian investment coordinating board chairman Gita Wirjawan and deputy trade
minister Mahendra Siregar will brief 150 Indonesian and Australian businesspeople at a
two-day conference in Yogyakarta on new business opportunities within bilateral
economic ties.
The annual conference of the Indonesia Australia Business Council (IABC), beginning
Monday, will discuss new ways of further developing business ties between the two
countries amid the green shoots sprouting in the industrialized economies and a robust
recovery in Indonesia.
The meeting will discuss issues related to natural resource and infrastructure
development, tourism, small and medium-enterprise partnership, taxation, financing and
labour regulations.Indonesia was Australia’s 13th largest trading partner last year, with
two-way trade of merchandise (commodities) and services totaling about US$10 billion.
Indonesia is Australia’s 18th largest investment destination with a cumulative stock of
capital investment amounting to nearly $4 billion
• Social front
•
Indonesia may deport Sri Lankans on boat
Indonesia is threatening to deport hundreds of Sri Lankan asylum seekers who have been
refusing to leave a boat docked at a Javanese port until they are granted refugee status.
49
Some 247 ethnic Tamil migrants, led by an alleged people smuggler called
Kulaendrarajah Sanjeev, have been engaged in the stand-off since they were intercepted
on their way to Australia on October 11."If Australia doesn't want to accept them and
they don't want to come off the boat, we will ask the IOM (International Organisation for
Migration) to return them to their country," senior foreign ministry official Sujatmiko
said."For sure they'll be opposed to it because they're scared of returning to their country.
But Indonesia has no choice as we're not their destination country," he said.Seven
migrants who left the boat earlier will be deported from immigration detention if their
asylum applications with the United Nations HighCommissioner for Refugees (UNHCR)
are rejected, he added.
Only one has already been returned home, Sujatmiko said.The crowded wooden cargo
vessel has been moored at Merak port on the western end of Java island since it was
stopped at sea by Indonesian authorities en route to Australia.
The group's "spokesman", Sanjeev, who calls himself Alex, says the migrants are fleeing
persecution in Sri Lanka following the end of a bitter civil war pitting ethnic Tamils
against majority Sinhalese.Sri Lanka accuses the 28-year-old, who earlier threatened to
blow the boat up and announced a hunger strike which was called off after two days, of
being a well-known people smuggler.He denies the allegation but admits he was deported
from Canada for criminal offences.The stand-off, along with a similar situation involving
an Australian customs vessel off Indonesia's Bintan island to the north, has fuelled an
intense political debate in Australia over refugee policy.There has been a dramatic rise in
boat people arrivals in Australia's remote north this year, backed by Indonesia-based
people smuggler .
•
Five Million AIDS Patients in Indonesia
Health experts on AIDS reported on Monday there are five million patients in 300 cities
and districts in Indonesia. According to the health center IMAI, this number is an
estimate of the HIV virus cases who went to hospitals, which are only 10 percent of the
true number of carriers in that country. IMAI Chief, Ronald Jonathan, stated that reported
cases will be between 93 to 130 thousand next year, which is only the tip of the iceberg
"five or 10 percent of HIV carriers in Indonesia". Jonathan said that the archipelago had
about 18,442 HIV positive, Prensa Latina
• Floods submerge thousands of houses in Riau
Floods have submerged thousands of houses across 26 villages in Rokan Hulu regency,
Riau following heavy rainfall for the past week. Based on data from disaster posts in
Rokan Hulu, the flood has submerged 3,153 houses; the worst-hit district being Bonai
Darussalam where the number of those affected has reached 1,700 families.
Water as high as 50 centimeters has inundated the Trans-Sumatra highway at Pasir
Pengarayan. Residents have to rent boats and pay between Rp 20,000 (US$2) and Rp
50,000 for each crossing if they want to get to Pasir Pengarayan. The Rokan Hulu
regency Social Agency has distributed logistical aid such as instant noodles, rice and
cooking oil to all of the victims.
Joeni Syafri, head of the agency, said his office had given the aid after it had received
official request letters from the village administrations. "The aid has yet to reach the
villages because not all village or district heads sent letters. It is the administrative heads
who know the exact number of residents who need aid," Jeoni said.
50
He added his office was planning to set up temporary camps to accommodate those who
had to move out of flood-vulnerable homes.
•
Corruption scandal tests Indonesia’s Yudhoyono
Indonesian leader Susilo Bambang Yudhoyono is days away from a decision on a
corruption scandal that will test his election pledge to fight rampant graft and possibly
define his presidency. The president is expected to announce next week his response to
the recommendations of an independent legal team set up to look into an alleged plot by
law enforcers to frame senior officials at the Corruption Eradication Commission (KPK).
The alleged conspiracy, exposed by KPK wiretap recordings played in court earlier this
month, has shocked the nation with the extent of the apparent collusion of police and
prosecutors—the “court mafia”—to pervert justice.Yudhoyono is under extreme public
pressure to accept the fact-finding team’s recommendations—that corruption charges
against two KPK deputy heads be dropped and sanctions leveled against top police and
prosecutors.
“The president will be staring his own political suicide in the face if he refuses to follow
up fully on the recommendations,” English-language daily The Jakarta Post said in an
editorial Wednesday“His choices are limited: defend the corrupt officials, or defend the
people who are deeply hurt by their brutal behavior.”
Anger erupted after wiretap recordings captured senior police and prosecutors discussing
ways to apparently frame the two commissioners.The anti-graft investigators were
arrested last month but were released after the KPK’s recordings were played in court on
November 3.The crisis comes just a month into Yudhoyono’s second term, which was
won by a landslide in July in part due to pledges to tackle corruption.
Despite his clear mandate, the liberal ex-general has insisted he will not be “pushed” into
doing anything that could be construed as overstepping his constitutional authority.Anticorruption activists say the longer he dithers the more ordinary Indonesians, and foreign
investors deemed crucial to Indonesia’s long-term economic growth, will start to question
his motives.“The president should understand that democratic leaders do not fall because
of the scandal, but because of the attempt to cover up,” said Bambang Harymurti, a senior
editor of Tempo news magazine.
He said Yudhoyono had been slow to grasp the extent of public anger over the alleged
police war on the KPK, which has seen street protests and over 1.3 million people join a
pro-KPK group on social networking site Facebook.The president has also been forced to
swat back suspicions that he himself was a supporter of plans to weaken the KPK, with
the wiretaps containing several mentions that the plot had the blessing of “RI-1,”code for
Yudhoyono.
Some analysts have linked the suspected anti-KPK conspiracy to election finance for
Yudhoyono’s centrist Democratic Party and a $710-million government bailout of a
failing bank last year.
“More and more rumors are circulating about the president,” Denny Januar Ali, an
analyst from pollsters the Indonesian Survey Circle said.Yudhoyono has staunchly denied
any involvement in the alleged plot against the KPK and pledged to dismantle what he
called the “court mafia” within the first 100 days of his second term.
Malaysia
• Political Front
• Economic Front
51
•
After deviations, economists emphasise on people for growth
ONE of the great acts of disservice by economists has been the depersonalization of
economic growth and development. From the classical school, who regarded land to be
the most important factor, to the neoclassical, who gave prominence to physical
investment and later technology, economists have tended to prefer the inanimate over the
animate.
Today, the emphasis is where it should always have been – on people. But even now,
terms such as human resources and human capital are deliberately abstract, as if to be any
less would be shamefully unscientific. For some reason, economists and bureaucrats are
more secure if economic growth were reduced to equations, tables and boxes on a
PowerPoint rather than biology and psychology.
Innovation, however, starts and ends with a living, breathing person. That person has a
family, a circle of friends and a community. He or she has values and preferences, and
either loves, hates or is indifferent to their country. That person has an identity and a
name. The faster we can unlearn mathematical economics and try learn the names of
these innovators, the better.
Malaysians already know many, such as Bill Gates and Steve Jobs in computers, Andrew
Lloyd-Weber and Sting in music, and Stephen Spielberg and Peter Jackson in films.
Companies like Google, Twitter and CNN are also renowned. In specialised fields,
innovators may be less known but no less influential. Without Vint Cerf and Tim
Berners-Lee, there might well have been no Internet and the World Wide Web.
As Malaysia strives to create a new economic model that will lead to a high rate of
innovation and creativity, it is critical to understand what factors are absolutely pivotal,
what are important and what are not. People, the organisations they work for, and the
political, legal and social institutions which they have to deal with and involved in,
clearly matter a very great deal.
Many of these factors are recognised by Malaysian policymakers. The national key result
areas (KRAs) adopted for the 10th Malaysia Plan, for example, include moving up the
value-chain, raising abilities, knowledge and innovation through first-class minds,
fostering the quality of life and strengthening institutional and implementation capacity.
Last week, Malaysia’s MSC International Advisory Panel met. Present were pioneers like
Muhammad Yunus, founder of the Grameen Bank, NR Narayana Murthy of India’s
Infosys and IBM’s Sam Palmisano. Also here were content providers such as Mahmoud
Bouneb of Al Jazeera’s Children’s Channel, Steve Forbes of Forbes magazine and Brian
Mefford of Connected Nation.
To my mind, however, one of the most-telling comments came from John Gage, a
venture capitalist, who talked about the importance of recognising people as social
beings. He is reported to have said, “When you add value to others, when you make
people happy, they will add value to your business.”
Now making people happy is probably a bit of a tall order. The things that make people
happy can be very different and the capacities to do so are limited at best. Gage’s point,
however, is an important one: while people are expected to add value to products and
processes, they have to be valued added as well.
Education is certainly one of the ways of adding value. But formal education is only one
part of what is learned. What is observed from the behaviour of those in society at large is
52
often as, if not more, profound than what is learned in classrooms. In any case, it is
debatable whether we have done that good a job in educating our young.
Other factors prevail. People need to be properly motivated, equipped and managed to do
a good job. Strong and efficient management systems need to be place. But if people are
expected to be also innovative and creative, these systems have also to encourage private
initiative and ownership and show tolerance for independence and individualism.
These two sets of imperatives do not, of course, necessarily sit well with each other. It is
easy enough to talk about the need to “think outside the box” but when individuals start
to also “act outside the box”, it can seriously disrupt the status quo. The best leaders and
organisations have found ways to harness the raw passions of innovators and yet maintain
a semblance of order.
Apart from private space, there must also be acceptance of failure on the basis that not
every attempt at innovation is successful. Countries also actively encourage an open and
knowledge-rich ecosystem, information dissemination and networking and dialogue. Few
things are taken off the table and there is little or no attempt to censor discussions.
Organisational hierarchies limit personal discretion and facilitate quick decision-making.
Leaders and managers are placed in their positions because of competence and
experience, not politics and seniority. The payoffs for performance are generous,
sometimes extremely so, but these are not the drivers of behaviour. The act of excelling
and self-actualisation are their own reward.The desire to excel necessarily means that
there is a low tolerance towards mediocrity and incompetence. Institutions are
scrupulously fair and impartial, and great riches do not lie in store for the corrupt and
immoral. These are the attributes of an innovation economy. These are what the new
economic model should be about.
ONE of the great acts of disservice by economists has been the depersonalization of
economic growth and development. From the classical school, who regarded land to be
the most important factor, to the neoclassical, who gave prominence to physical
investment and later technology, economists have tended to prefer the inanimate over the
animate.
Today, the emphasis is where it should always have been – on people. But even now,
terms such as human resources and human capital are deliberately abstract, as if to be any
less would be shamefully unscientific. For some reason, economists and bureaucrats are
more secure if economic growth were reduced to equations, tables and boxes on a
PowerPoint rather than biology and psychology.
Innovation, however, starts and ends with a living, breathing person. That person has a
family, a circle of friends and a community. He or she has values and preferences, and
either loves, hates or is indifferent to their country. That person has an identity and a
name. The faster we can unlearn mathematical economics and try learn the names of
these innovators, the better.
Malaysians already know many, such as Bill Gates and Steve Jobs in computers, Andrew
Lloyd-Weber and Sting in music, and Stephen Spielberg and Peter Jackson in films.
Companies like Google, Twitter and CNN are also renowned. In specialised fields,
innovators may be less known but no less influential. Without Vint Cerf and Tim
Berners-Lee, there might well have been no Internet and the World Wide Web.
53
As Malaysia strives to create a new economic model that will lead to a high rate of
innovation and creativity, it is critical to understand what factors are absolutely pivotal,
what are important and what are not. People, the organisations they work for, and the
political, legal and social institutions which they have to deal with and involved in,
clearly matter a very great deal.
Many of these factors are recognised by Malaysian policymakers. The national key result
areas (KRAs) adopted for the 10th Malaysia Plan, for example, include moving up the
value-chain, raising abilities, knowledge and innovation through first-class minds,
fostering the quality of life and strengthening institutional and implementation capacity.
Last week, Malaysia’s MSC International Advisory Panel met. Present were pioneers like
Muhammad Yunus, founder of the Grameen Bank, NR Narayana Murthy of India’s
Infosys and IBM’s Sam Palmisano. Also here were content providers such as Mahmoud
Bouneb of Al Jazeera’s Children’s Channel, Steve Forbes of Forbes magazine and Brian
Mefford of Connected Nation.
To my mind, however, one of the most-telling comments came from John Gage, a
venture capitalist, who talked about the importance of recognising people as social
beings. He is reported to have said, “When you add value to others, when you make
people happy, they will add value to your business.”
Now making people happy is probably a bit of a tall order. The things that make people
happy can be very different and the capacities to do so are limited at best. Gage’s point,
however, is an important one: while people are expected to add value to products and
processes, they have to be valued added as well.
Education is certainly one of the ways of adding value. But formal education is only one
part of what is learned. What is observed from the behaviour of those in society at large is
often as, if not more, profound than what is learned in classrooms. In any case, it is
debatable whether we have done that good a job in educating our young.
Other factors prevail. People need to be properly motivated, equipped and managed to do
a good job. Strong and efficient management systems need to be place. But if people are
expected to be also innovative and creative, these systems have also to encourage private
initiative and ownership and show tolerance for independence and individualism.
These two sets of imperatives do not, of course, necessarily sit well with each other. It is
easy enough to talk about the need to “think outside the box” but when individuals start
to also “act outside the box”, it can seriously disrupt the status quo. The best leaders and
organisations have found ways to harness the raw passions of innovators and yet maintain
a semblance of order.
Apart from private space, there must also be acceptance of failure on the basis that not
every attempt at innovation is successful. Countries also actively encourage an open and
knowledge-rich ecosystem, information dissemination and networking and dialogue. Few
things are taken off the table and there is little or no attempt to censor discussions.
Organisational hierarchies limit personal discretion and facilitate quick decision-making.
Leaders and managers are placed in their positions because of competence and
experience, not politics and seniority. The payoffs for performance are generous,
sometimes extremely so, but these are not the drivers of behaviour. The act of excelling
and self-actualisation are their own reward.The desire to excel necessarily means that
there is a low tolerance towards mediocrity and incompetence. Institutions are
54
scrupulously fair and impartial, and great riches do not lie in store for the corrupt and
immoral. These are the attributes of an innovation economy. These are what the new
economic model should be about.
• Malaysia to decide on free trade formats
The Malaysian government would decide whether to pursue its Free Trade Agreement
(FTA) talks with the United States or engage in the Trans-Pacific Partnership (TPP)
negotiations, a Malaysian official said here on Wednesday.
Malaysian International Trade and Industry Minister Mustapa Mohamed said at the
media briefing on the benefits of ASEAN Free Trade Agreements with other countries
that he would seek mandate from the Malaysian cabinet with regards to the U.S.Malaysia FTA negotiations.
Mustapa said that it was no longer the priority of the U.S. to negotiate with Malaysia on
the bilateral FTA as the U.S. had shown its commitment in engaging the TPP. U.S.
Trade Representative Ron Kirk earlier announced that U.S. President Barack Obama had
promised Washington's commitment to engaging in the four-member TPP, a trading
framework believed to have the potential to develop into a sweeping cross-Pacific free
trade pact. Signed by New Zealand, Chile, Singapore and Brunei in 2005, the Partnership
is aimed to promote regional trade and economic integration. Mustapa said four other
countries had also shown interests in the TPP framework and the Malaysian cabinet had
to decide if Malaysia should embrace the framework, abandoning the U.S.-Malaysia FTA
negotiations. The four countries include the U.S., Australia, Vietnam and Peru.
Mustapa reiterated Malaysia's stand that the country was committed to opening up its
market as it was one of the major trading countries in the world and more liberalizations
could be expected in future as it was not right to knock on others' doors while keeping
their doors closed. When asked if the establishment of the ASEAN Economic
Community could be brought forward, Mustapa said the development levels among
ASEAN member countries were different and many discussions were still underway.
Therefore, the building of the ASEAN Economic Community was expected to be
completed by 2015, as agreed upon by all member countries, added Mustapa
• Malaysia GDP could hit 6% by 2012, says World Bank economist
Malaysia’s gross domestic product (GDP) may rise to 6% by 2012, driven by
Government reforms and as the global economy continues to recover, a World Bank
economist said.
The Government expects the GDP to expand 3% in 2010, against a forecast of 4.1% by
the World Bank. It also sees the economy shrinking 3% this year, less than an earlier
forecast of a contraction of 4% to 5%.World Bank senior economist Philip Schellekens
said the 6% growth was achievable as reforms have encouraged more private sector
participation and greater productivity.
“We anticipate that the reform momentum in Malaysia is building up and this will
contribute to greater productivity growth and a new dynamism in the economy,”
Schellekens told a press conference following a talk entitled “Malaysia:Productivity and
Investment Update,” organised by the Economic Planning Unit and the World Bank.
'The reform momentum in Malaysia is building up' WORLD BANK SENIOR
ECONOMIST PHILIP SCHELLEKENS
55
Malaysia has so far liberalised 27 subsectors in the services sector, freeing up constraints
in the banking and financial industry.It also initiated reforms on bumiputra equity
investment and putting more effort and money in human capital development.
Schellekens also said “Malaysia is well positioned to participate in the global economic
recovery on the back of rising demand in China and the rest of the region as well as
progressive improvement in advanced economies,” observing that Malaysia’s economy
has remained resilient although the manufacturing sector had gone through one of its
worst export slumps.
The World Bank economist said the reforms would also boost private sector participation
in the economy, noting that private sector investments have not recovered to the levels
before the Asian Financial Crisis of the late nineties.“After the crisis, private sector
investment in Malaysia fell to between 10% and 12% and has never recovered to the precrisis levels of 30% (as a percentage of total investment to real GDP,” he said.
Schellekens said the Government’s target of 5.5% GDP growth until 2020 was
“realistic,” provided the Government could effectively pull off the various programmes to
revitalise the economy that had been announced over the year.
• Koh: Use multi-racial and social connections to boost business
Malaysia can use its multi-racial cultural and social connections as an asset for economic
relationships and developments, Minister in the Prime Minister's Department, Senator
Tan Sri Dr Koh Tsu Koon, said on Monday.
Koh said the diversity of religions and cultures in the context of a largely peaceful and
harmonious social environment has been perceived and promoted as a major asset rather
than a liability.He said the three main races comprising Malays, Chinese and Indians in
Malaysia could play their roles to explore business opportunities in the overseas market.
Explaining further, Koh said the Chinese community in Malaysia has been encouraged to
use their linguistic capability and cutural affiliations to help the country in gaining access
to China's huge market.
Malay and Muslim businessmen and professionals have been exploring economic
collaborations and other potential ventures with Islamic countries while Indian
Malaysians could work on relationships with India and the global Indian diaspora, he
said."There are many Malaysians overseas, either studying, working or residing, and they
have expertise and experience," Koh told reporters after officiating the World Chinese
Economic Forum (WCEF) held here.
"They can work together among themselves and also network with the Muslim, Chinese
and Indian diaspora in their respective countries to bring development to Malaysia," he
said.According to Koh, it is vital for Malaysia to embrace China and India as strategic
partners in Asia."I believe that the 21st century will develop into an Asian century with
China and India playing key and significant roles in shaping the future of Asia," he
said.Koh said the inaugural WCEF was timely as it came right after the historic visit
byChina's President Hu Jintao to Malaysia and the fruitful conclusion of the Apec
meetings in Singapore.
The forum with the theme, "Building Business Linkages, Charting New Frontiers", will
present new perspectives and creative strategies to harness the potential of China as a
rising economic powerhouse.It also aimed harness the network of Chinese communities
throughout the world, commonly known as the Chinese diaspora, to explore, exploit and
enhance economic potential for the benefit of all nations.
56
The WCEF is jointly organised by Country Heights Holdings Bhd, Easy Pha-max and the
Asian Strategy and Leadership Institute (Asli).
Malaysia-China bilateral trade exceeded US$53.4 billion last year, meeting the US$50.0
billion target for 2010 two years ahead of schedule.
• Social Front
• Malaysia defends slide in global graft ranking
Malaysia has stepped up efforts to combat graft to maintain investor confidence as a
survey showed the country's corruption ranking worsened this year, Trade Minister
Mustapa Mohamad said Wednesday.
.Malaysia fell to 56th position out of 180 countries in Transparency International's
Corruption Perceptions Index 2009, compared to 47th last year. The fall in ranking is due
to the perception that there has been little progress and political will to combat graft.
The Malaysian Anti-Corruption Commission appears to focus on "small fish" and
opposition politicians, said the annual report by Transparency that was published
Tuesday.An opposition leader, Lim Kit Siang, called the downgrading a "national shame"
and a major blow for Prime Minister Najib Razak, who declared the war against
corruption as a key priority after taking power in April this year.The trade minister said
the government remained committed to weeding out graft but that measures would take
time to bear fruit.A government lawmaker and five other politically linked people were
charged earlier this month with corruption in unrelated cases. It is rare for ruling party
politicians to be charged with corruption."People have confidence in the measures that
we have taken. The results will not come overnight but the results are beginning to
show," Mustapa told reporters."We are quite confident that the next ranking exercise will
see an improvement in Malaysia's position," he said.Corruption is pervasive in Malaysia
and ranges from small bribes to police officers to millions of dollars for contracts.
Philippine
• Political Front
• No favourites yet in Philippine polls
Philippine presidential elections to be held next May are wide open and there is no clear
favourite despite the son of revered former President Cory Aquino taking a strong lead in
opinion polls. Nominations open next week for the election and Senator Benigno
"Noynoy" Aquino is likely to be among the early ones to file. Others in the fray should
include billionaire businessman Senator Manuel Villar, former President Joseph Estrada
and administration candidate Defence Secretary Gilberto Teodoro.
There's no clear leader yet emerging," Benito Lim, political science professor at the
Ateneo de Manila University, told Reuters. "The campaign men are trying to create the
impression that Noynoy is already far away (the winner), but that is not true." Many in
the business community back Villar, who controls real estate firm Vista Land and
Lifescapes, although Aquino and Teodoro have their followers as well. But investors
have said an Estrada victory could lead to an upheaval in markets.
The former president was ousted from office in 2001, later convicted of plunder and then
pardoned by President Gloria Macapagal Arroyo. Investors have worried over his
administration's profligate public spending and stories of Estrada's midnight parties with
gambling and drinking buddies. "The rags-to-riches Villar story, growing up poor and
becoming a tycoon, those are the kind of things that resonate with investors and the
57
business community," said Pete Troilo of the Political Strategies & Assessments
consultancy.
On Estrada, he said: "You can only hope that Estrada recognises he is an illegal
distraction to the official election process and does what is best for the country and steps
aside, and I think nearly every foreign investor I have talked to echoes that sentiment."
Estrada's nomination will almost certainly be challenged since he has won a previous
election as president and the constitution allows only one term. But since he did not finish
his term, the case is not clear.
As a former movie star with a Robin Hood image, Estrada has a large following among
the poor, which has been unaffected by the scandals surrounding him. "He's also a better
crowd drawer than Villar," said Earl Parreno of the Institute for Political and Electoral
Reforms, adding the Arroyo administration wanted him to run to take votes off Villar and
Aquino and boost Teodoro's chances.Aquino has led voter surveys so far, but analysts say
there's a long way to go before the election. He announced his candidacy only in
September, after hundreds of thousands of people poured out on the streets for the funeral
of his beloved mother, Cory. The well-regarded SWS survey, which asked respondents to
name three favoured candidates last month, had Aquino with a 60 percent rating, far
ahead of Villar with 37 percent. Estrada had 18 percent and Teodoro four percent.
The country has very fond memories of Aquino's mother as a democracy icon but I really
think you are going to start seeing other candidates chip away at that lead," said Troilo.
"He'd certainly be a formidable candidate, but those numbers are very, very high, based
on emotions right now and they will fall.
Teodoro, who plans to resign from the defence secretary's post this weekend or on
Monday to focus on the election, has trailed mainly because of Arroyo's unpopularity and
charges of corruption against her administration. But he himself is untainted and his
standing is widely expected to improve, especially since the others are seen to be from
the opposition and would cut into each other's votes. "The two opposition candidates
(Aquino and Villar) have a leg up, but you can't rule out the Arroyo political machinery
that's behind Teodoro," Troilo said.
• Philippine administration party chooses official candidates for 2010 elections
In an apparent show of force, some 3,000 members of President Gloria Arroyo's political
party gathered at the Philippine International Convention Center on Thursday to formally
declare former defence secretary Gilbert Teodoro and game show host Edu Manzano as
the administration party's official candidates for president and vice president,
respectively, for the May 2010 elections. Despite the poor performance of their standard
bearer in recent surveys, the ruling party is confident that with their vast political
machinery, they will emerge victorious in next year's elections.
The party is also banking on the popularity of television personality Edu Manzano to
boost the administration party's low public approval ratings.
Gilbert Teodoro Jr, presidential candidate said: "We have a wide party machinery. We
have a vision and a clear platform. We stand on a party with a track record of service and
performance. "Naturally, because we are the administration party, whenever there are
problems, we are the ones facing those head on, and you really cannot satisfy everybody.
But still we have performed incredibly well."
58
Edu Manzano, vice presidential candidate said: "Popularity will not suffice. We will need
to rely on support mechanisms that will allow us to relay to the people our plans and
platforms that will give them a brighter future."
The administration's party is hoping for a repeat of the 2004 elections whereby President
Gloria Arroyo was able to clinch the presidency despite suffering from low popularity
ratings. It remains to be seen, however, whether they would be able to duplicate the same
feat in 2010.
• Economic Front
• Economic growth picked up in Q3 -- NEDA
THE Philippine economy likely grew at a faster pace in the third quarter, propped up by a
strong services sector and remittances from overseas Filipino workers (OFWs), the
National Economic and Development Authority (NEDA) said Thursday.
Acting Socioeconomic Planning Secretary and NEDA Director General August Santos
said the economy, as measured by the country’s gross domestic product (GDP), may have
grown between 1.6 percent and 2.6 percent in the three month period ended September.
An indicator of economic performance, GDP is the amount of final goods and services
produced in the country. The National Statistical Coordination Board (NSCB) will
announce the official GDP figures on November 26. Santos said growth mainly came
from the services and agriculture sectors.
He said that the industry sector recorded a slight contraction because of the global
financial crisis. Given the latest projection, “We’re on track to meet achieving the full
year growth target,” the NEDA chief said. The government expects a GDP growth of
between 0.8 percent and 1.8 percent this year. In the first half of the year, the economy
grew by 1 percent. Santos said the services sector and OFW money offset the impact of
typhoons Pepeng and Ondoy. The NEDA earlier said the two typhoons may have cut
GDP growth by 0.2 percentage points to between 0.6 percent and 1.6 percent this year.
More growth in fourth quarter
Santos said the government sees “more growth in the fourth quarter because of the
Christmas spending and early election spending.” Data from the Bangko Sentral ng
Pilipinas showed that money sent home by OFWs increased by 8.6 percent year-on-year
to $1.446 billion in September. This caused remittances, which contribute 10 percent to
GDP, to grow by 4.2 percent to $12.8 billion in the first nine months of this year.
With the September remittance data, “Definitely, we can reach more than 5- percent
growth this year,” Santos said.In a separate report, Goldman Sachs said remittances by
OFWs are likely to grow by 11 percent in December.“We expect growth in overseas
remittances to accelerate over the next few months and reach 11 percent year-on-year by
December, as a lagged response to improving global growth conditions, an uptick in oil
prices improving the macro environment in the Middle East, and the Christmas season
inflows acting as a catalyst,” the US-based bank said.
It said the robust remittance inflows would support the peso in the next 12 months,
adding the local currency is likely to hit 44.5 against the dollar.
• Philippines seeks $ 5 bn natural gas investment
15-10-09 Filipino Energy Secretary Angelo Reyes says the country needs $ 5 bn in
investment in its natural gas sector in the next five years. Reyes made his observation
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when talking to investors, maintaining the infusion of capital was necessary to decrease
the country's dependence on imported fuel for power generation and public transport.
Reyes told his audience at the Philippine Economic Briefing: "Our policy to diversify
energy sources creates various potentials for investments, which include putting up of
critical infrastructure to bring the energy to various end-users."
"Among our top priority is putting up the proposed gas transmission network in Luzon to
bring the natural gas from the Malampaya to different economic zones and transports
sectors in the area." "Our commitment is to sustain the momentum gained in attaining
energy independence and pursuing power-sector reforms," he added. "We will pursue
government-private sector partnership in the development of strategic energy, strategic
infrastructures for natural gas."
•
APEC urges new growth model, climate pact progress
Open trade and people-centered strategies are key for sustained, stable growth, President
Barack Obama and Asia-Pacific leaders said Sunday, pledging to persist with stimulus
spending until a global recovery is assured.
The leaders wrapped up the annual meeting of the 21-member Asia-Pacific Economic
Cooperation forum with a joint pledge to resist protectionism. They also endorsed
policies to encourage more environmentally friendly growth that is "balanced, inclusive
and sustainable, to ensure a durable recovery that will create jobs and benefit our people."
Growth led mainly by American consumption and borrowing and Chinese exports is not
sustainable in the long term, Lee Hsien Loong, Singapore's prime minister, told reporters.
Neither is relying on debt-backed stimulus spending to spur demand. "We know that the
old formulas are not going to work as well in the future because it's a different world," he
said. "You have to find another balance."
But despite calls for faster progress in world trade talks and efforts to craft a worldwide
global warming treaty, the leaders offered no specific, new initiatives for either one typical of the forum's nonbinding nature.
The World Wildlife Fund's Global Climate Initiative expressed disappointment that an
earlier push for a 50 percent reduction in greenhouse gas emissions from 1990 levels by
2050 was omitted from the leaders' final statement."Leaders have to take the bull by the
horns, and finally tackle the difficult questions, instead of constantly avoiding them,"
spokeswoman Diane McFadzien said in a statement.The leaders, who met over breakfast
to discuss global warming, committed only to working toward "an ambitious outcome" at
climate talks in Copenhagen, Denmark, next month.
But Lee said he believed some countries were holding their cards for later. "This is not an
occasion for negotiating climate change," he said.The annual meeting of APEC, which
was founded 20 years ago to promote closer economic ties in the diverse, wide-flung
region, focused mainly on ways to ensure the recovery from the worst economic crisis
since the 1930s takes hold and endures.
The overriding concern is to end imbalances in trade, investment and growth that are
viewed as the underlying causes of the global financial meltdown.
"The intrinsic problems of the world economic system are yet to be solved at the source,
and the effort to fully restore world economic growth is beset by uncertainties and
destabilizing factors," Chinese President Hu Jintao said in a speech to fellow leaders
Sunday.
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"We should use the financial crisis as an opportunity to take a serious look at its root
causes," said Hu, whose country expects growth of at least 8 percent this year and was
widely credited by other APEC leaders with spearheading the global recovery.Leaders
pledged to pursue reforms that will "gradually unwind global imbalances," and also to put
in place regulatory policies that will prevent credit and asset markets from becoming
"forces of destabilization."
As it assessed progress on dismantling regional barriers to trade and investment, the
group won backing for its long-term goal of creating a free-trade area covering all 21
APEC economies.Underscoring the American commitment to a region increasingly
dominated by China, now the world's third-largest economy and a growing political and
military player, Obama announced Washington's interest in joining the Trans-Pacific
free-trade partnership.For now, the gesture is largely symbolic: the grouping now
includes only four countries, and Obama's administration has put off work on free-trade
pacts with South Korea, Colombia and Panama while it deals with domestic economic
troubles and the war in Afghanistan, among other issues.Washington is embroiled in
disputes with China over trade in tires, steel and autos, among other products, and is
pushing Beijing to loosen controls that it says keep the Chinese currency, the yuan,
undervalued.The yuan's weakness is unwelcome for many countries in the region that
compete with Chinese export manufacturers. But the APEC leaders did not mention
currency rates in their final statement, despite an earlier call by finance ministers for
maintaining "market-oriented exchange rates."
Later Sunday, Obama headed to China, with a first stop in Shanghai, the mainland's
commercial and financial capital.Earlier, he joined a summit with all 10 leaders of the
Association of Southeast Asian Nations, including military-ruled Myanmar. In the
unusual face-to-face encounter, Obama told Myanmar's Prime Minister Gen. Thein Sein
to free pro-democracy leader Aung San Suu Kyi.
A joint statement issued after the summit - the first ever between a U.S. president and
ASEAN - devoted an entire paragraph to Myanmar, a major irritant in relations between
the two sides.It urged Myanmar to ensure that 2010 elections are "free, fair, inclusive and
transparent," but did not call for the release of political prisoners.
Obama also announced that after next year's APEC forum in Yokohama, Japan, he will
host the 2011 gathering in his native Hawaii.
• The Philippines Interested in Investment in Syria
The Philippines is interested in developing economic and tourist relations with Syria,
Deputy Minister of Trade and Industry of the Philippines Elmer Hernandez said on
Sunday. Hernandez said during a meeting with the Governor of Aleppo Ali Mansoura
that he has come to get acquainted with the investment opportunities in Syria with the
hope to deepen cooperation especially in the fields of electronics and car spare parts.
He expressed hope the trade exchange volume between Syria and the Philippines will
increase in the coming years. Hernandez encouraged Syrian businessmen to make
investments in the Philippines
• Social Front
• Troops foil deadly attack in S Philippines
State security forces foiled another deadly attack on Saturday after they detonated a
homemade bomb planted near the residence of a state official in the southern Philippine
city of Zamboanga. The explosive, fashioned from a mortar shell, was discovered by
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locals who immediately informed policemen, was left by unknown men not far from the
resident of Representative Mujiv Hataman of Anak Mindanao in the village of Culianan
shortly after 12:30 p.m., said police spokesman Supt. Jose Bayani Gucela. No one
group claimed responsibility for the foiled bombing but authorities blamed Muslim
militants as responsible in previous terror attacks in the troubled region. Earlier this
week, lawmen have recovered and defused an improvised pipe-type bomb attached to a
mobile phone in this southern city. On March this year, similar type of explosive was
found and detonated by Filipino bomb experts.
• Islamic group faces charges for kidnapping missionary priest in
Philippines
Authorities in the Philippines have brought criminal charges against several members of
the separatists Moro Islamic Liberation Front, and expect to add more charges, in
connection with the kidnapping of Father Michael Sinnott. Father Sinnott, a 78-year-old
missionary priest from Ireland, was seized by unidentified gunmen in early October. He
was released unharmed a month later, as government forces closed in on his captors.
No crisis or slowing down for Manila rich, famous – Synovate poll While most
economies and peoples worldwide are going through hard times, there’s no stopping
Manila’s rich and famous from enjoying the good life, a new survey shows. “Affluent
consumers in Manila continued to spend despite the recession in the past year,” according
to the findings of the 2009 PAX survey conducted by market intelligence firm Synovate
Ltd. The findings were released Tuesday.
For instance, the study showed that about one fourth (23.9 percent) of those polled among
Manila’s elite said they have gone on at least one or more leisure trips in the past 12
months. In contrast, only 2 percent of the general Filipino population has been on
vacation this year, Synovate reported.
Also, almost half (48.4 percent) of those surveyed continued to purchase popular highend brands this year, up from 39.6 percent last year.The rich Filipinos’ average monthly
billing on credit cards also increased from $549 in the second quarter of last year, to $666
in the same quarter this year.
What the rich buys
According to the 2009 PAX, “Affluent Manila consumers show the highest increase in
intention to purchase all things luxurious compared to other markets surveyed, from
designer clothes and leather goods [from 6.2 percent last year to 8.7 percent this year],
quality accessories and footwear [from 5.1 percent to 7.1 percent], jewelries [from 6.5
percent to 10.5 percent], to luxury watches [from 7.1 percent to 8.6 percent].”
Also, Manila’s elite were up to date with the latest and “high-tech” gadgets. For one, 69.1
percent of well-off Manila residents have a mobile phone with In-ternet access and
camera functions, while only about a third of the general population own such, Synovate
reported.
It added that 63 percent of Manila’s rich capture moments using their own digital video
cameras; 62.1 percent drive their own cars; 47.9 percent boast of laptops; 28.2 percent
click on SLR digital still cameras; and 38.2 percent watch TV on flat screen sets. On the
average, only about a fifth of Filipinos also own such gadgets.
The survey also noted that ownership of smartphones among Manila’s affluent has
doubled to about 15.6 percent of respondents this year. There as well was a 7.8-percent
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increase in the ownership of laptop computers, an 8-percent increase in ownership of
MP4 players, and 8.7-percent increase in ownership of digital still cameras among them.
Plus, three-fourths of well-off consumers from Manila said they now own one or more
financial products this year, up from 68.5 percent last year. Ownership of stock, securities
and bonds also rose from 15.3 percent of respondents last year to 16.3 percent this year;
as well as of foreign currencies as an investment (from 15.5 percent last year to 16.1
percent this year); and unit trust fund or mutual fund (from 9.8 percent to 10.4 percent).
“A significant jump is also seen in private property ownership, from 51.5 percent in the
period ending on the second quarter of 2008 to 58.2 percent in the period ending on the
second quarter of 2009. In terms of other properties meant for investing purposes,
ownership for elites in Manila is highest compared to other markets surveyed, at 39.1
percent, remaining stable from last year’s 38.8 percent,” Synovate added.
Their cup overflows
Moreover, consumption of alcohol among Manila’s rich overflowed, as 41.6 percent said
they have drank alcohol this year, versus 28.5 percent of elites who also did so last year.
“Manila is one of only three markets, with Taipei and Singapore, which saw an increase
in alcohol consumption this year. In fact, Manila saw the highest increase [13.1 percent],”
Synovate reported.
The 13th edition of Synovate PAX surveyed elite adults, and tracked their media and
digital consumption, prosperity and influence in the following 11 countries: Australia,
Hong Kong, India, Indonesia, Japan, Korea, Malaysia, Singapore, Taiwan, Thailand and
the Philippines.Synovate said it polled 1,670.
• Philippine floods spur move to high-rises: industry (AFP)
High-rise living has suddenly become more popular in Manila after killer storms caused
massive flooding in the Philippine capital, property industry officials said here Tuesday.
Businesses are also moving to higher ground to avoid a repeat of the devastation from
recent storms, which killed more than 1,100 people in Manila and other parts of the
island of Luzon, the officials told a business forum. “More Filipinos will embrace highrise living. They still prefer single-detached homes, but now they are more open to highrises,” Robinsons Land Corporation vice president Henry Yap told the forum.
After the storms “we had a barrage of calls (from people) wanting to rent out our highrise units.” Tropical storm Ketsana dumped the heaviest rains in more than four decades
on Manila on September 26, leaving more than 80 percent of the city flooded. This was
compounded a week later by Typhoon Parma, which caused most damage further north
on Luzon but also brought more rains to Manila. Nearly two months after Ketsana,
hundreds of thousands of people are still living in flooded areas on the outskirts of
Manila. “Some people were traumatised (by the floods) and don’t want to go home,” said
Corazon Guidote, head of SM Investments Corporation, a holding company with real
estate interests.
“You can already see a migration to certain areas. People are going to areas which are of
higher elevation. Rental rates in some areas have gone up because of the migration. There
will be more demand for high-rises.” However Guidote did not give specifics. Other
companies said they were also reviewing their plans for disaster preparedness in the wake
of the floods.
Thailand
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• "Yellow Shirt" rally against ousted Thaksin in Bangkok
"Yellow Shirt", supporters of the People's Alliance for Democracy (PAD), attend a mass
rally against ousted former Thai Prime Minister Thaksin Shinawatra and Cambodian
Prime Minister Hun Sen in Bangkok, capital of Thailand. Ousted former Thai Prime
Minister Thaksin Shinawatra was appointed as adviser of Cambodian Prime Minister
Hun Sen and the Royal Government of Cambodia King Norodom Sihamoni on Nov
• Thailand's PAD rally against Thaksin, Hun Sen kicks off in Bangkok
The People's Alliance for Democracy's (PAD) protest against ousted former Thai premier
Thaksin Shinawatra and Cambodian Prime Minister Hun Sen kicked off on Sunday in
Thailand's capital Bangkok. By 18:30 p.m. local time, over 10,000 PAD protesters or the
yellow-shirted people were rallying at Sanam Luang in the center of capital Bangkok
after they officially started their protest from 04:00 p.m. local time
• Thousands rally in Bangkok over Thaksin's remarks on monarchy
Thousands of people on Sunday attended a rally here to protest recent remarks by fugitive
former Prime Minister Thaksin Shinawatra concerning the monarchy. The rally was
organized by the People’s Alliance for Democracy, loose coalition of groups opposed to
Thaksin and his political allies, and the New Politics Party.
The PAD protesters wearing yellow and pink shirts and waving national flags gathered at
a large field on Sunday under the theme of expressing people’s power to protect ‘‘Nation,
Religion and Monarchy.’’ Thaksin recently gave an interview to Britain’s Times
newspaper in which he said that Crown Prince Maha Vajiralongkorn might not be as
popular as King Bhumibol Adulyadej, but he will have fewer problems because ‘‘the
palace circle will be smaller.’’
• PAD rally for the country, against Thaksin
The People's Alliance for Democracy (PAD) staged a mass demonstration in Bangkok's
Sanam Luang on Sunday evening, calling on Thai people to help protect the national
institution, religion and the monarchy.
Over 10,000 people, many wearing yellow and pink, filled the spacious grounds of
Sanam Luang since afternoon. Many were waving the national flags and signs with
messages condemning ousted prime minister Thaksin Shinawatra.
During the protest, PAD leaders took on stage and accused former premier Thaksin as the
cause of the Thai-Cambodian dispute. They said his actions were treacherous to the
country, and urged people to condemn him.PAD coordinator and New Politics Party
secretary-general Suriyasai Katasila said Puea Thai chairman and former prime minister
Chavalit Yongchaiyudh will not deliver a speech on the PAD stage, as Puea Thai member
Panlop Pinmanee claimed on Saturday.He said this was the gathering of people to protect
the country's dignity, starting from 4pm to 11pm.
The protesters will not move to the areas King Rama V Equestrian Monument, he said.
Deputy Prime Minister Suthep Thaugsuban, who is in charge of security affairs, said the
government will not underestimate the anti-Thaksin demonstration. He warned the
protesters to abide by the law.
He said the speakers at the rally should not make the situation between Thailand and
Cambodia worse."The government is unbiased. The Internal Security Act is not enforced
since the PAD has not moved to Government House yet," Mr Suthep said.
The government will take legal action against all wrongdoers, he said.
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Deputy police spokesman Piya Uthayo said three companies of police were deployed to
maintain security and order during the demonstration. The police will use the 'Korakot
52' riot control plan to deal with potential riots and violence.
• Thai minister hopes to prove claim over border temple
In this photo taken on March 13, 2009, shown is Cambodia's Preah Vihear temple near
the Cambodian-Thai border, about 245 kilometres north of Phnom Penh, Cambodia.
Thailand hopes some day to prove its claim to a historic border temple awarded to
Cambodia by the World Court almost half a century ago, its justice minister says on
Thailand hopes some day to prove its claim to a historic border temple awarded to
Cambodia by the World Court almost half a century ago, its justice minister says.
Justice Minister Pirapan Salirathavibhaga expressed his opinion on the controversy over
the 11th century Preah Vihear temple as Thailand's relations with its neighbour have
become badly strained.
The temple sits on a cliff in a disputed zone between Thailand and Cambodia. It has been
a source of tension and fueled nationalist sentiments on both sides of the border for
decades. On Wednesday, Cambodian villagers stabbed straw effigies of Thai Prime
Minister Abhisit Vejjajiva, saying his policies caused border tensions that hurt their
livelihoods.
The Thai government is carrying out delicate diplomatic manoeuvring with Cambodia to
try to obtain the release of a Thai citizen accused of spying. Relations with Cambodia
have worsened lately because it hosted a visit by former Thai Prime Minister Thaksin
Shinawatra, who was ousted by a 2006 military coup and is now a fugitive from justice.
Pirapan on Tuesday led foreign journalists on a tour to the northeastern province of Sri
Saket, adjacent to the Cambodian area where the temple is located.
Thai nationalists consider the 1962 ruling on the temple an injustice. Last year, ThaiCambodian relations soured when Bangkok first backed, then opposed Cambodia's bid to
have the temple declared a UNESCO World Heritage site. Some Thais believe the
designation undermines their claims to a small area of surrounding land, despite denials
by the U.N. cultural agency. Since then, both countries have beefed up their forces at the
border, leading to several skirmishes that left at least seven soldiers dead.
Pirapan claimed that the court -- formally known as the International Court of Justice -ruled only that the temple itself belonged to Cambodia, but not the land it stands on.
"The World Court decision is only for the temple itself, not the land," he said.
However, the Netherlands-based court in its formal judgment said it "finds that the
Temple of Preah Vihear is situated in territory under the sovereignty of Cambodia."
Asked why Thailand was willing to fight over the disputed land near the temple, Pirapan
responded: "because it's ours. Even if it is only one square inch, it is ours."
On the Cambodian side of the border, villagers Wednesday vented their anger by beating
and stabbing straw effigies with signs carrying Abhisit's name. The temple is easier to
reach from the Thai side of the border, and a market has sprouted up on the Cambodian
side that serves many Thai customers. But because of the unrest, the Thai army has
blocked access to the temple much of the time in recent months so no one can visit the
market from the Thai side.
Cambodia this month named Thaksin an adviser on economic affairs. The appointment,
and a subsequent visit by Thaksin, set off a diplomatic row in which the two countries
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recalled their ambassadors. A Thai court last year sentenced Thaksin in absentia to two
years in prison on a corruption charge.
Relations were strained further when Cambodia rejected a formal request from Bangkok
to extradite Thaksin. The situation worsened when Cambodia expelled a Thai diplomat
and arrested a Thai man on spying charges for allegedly passing secret information on
Thaksin's flight schedule to the Thai Embassy.
• Economic Front
• Politics the main risk factor to 2010 economy
Fears of increased political instability, the Map Ta Phut deadlock and rising oil prices
could hold back Thailand's economic recovery next year, according to academics.
Prime Minister Abhisit Vejjajiva told a seminar hosted yesterday by Thammasat
University that the economy was projected to grow by 3.5 per cent after contracting 3-3.5
per cent this year.
However, Thammasat economics lecturer Plaiphol Khumsap cautioned that domestic
politics and an uncertain global economic recovery were the main downside risks.
In addition, the economic recovery could be hindered by the unsolved problems
concerning 76 suspended industrial projects in Rayong's Map Ta Phut area, as well as by
the oil-price up-trend, he added.
Former deputy premier Somkid Jatusripitak agreed the economy would recover next year
but warned that the investment and tourism sectors were unlikely to see significant
improvementsPatamawadee Suzuki, dean of Thammasat's Faculty of Economics, said
gross domestic product would expand 2-3 per cent next year, aided by a recovery in
export industries.
However, higher oil prices and the stronger baht will not bode well for recovery, he said.
Thanavath Phonvichai of the University of the Thai Chamber of Commerce said GDP in
the current quarter was now projected to expand by 2.7 per cent, resulting in a 3.1-percent contraction for the full year
• For 2010, GDP growth is projected to be about 3.2 per cent, he said.
Abhisit acknowledged that the domestic political situation remained the top challenge as
his administration tackled the economic situation.Rising energy and food prices as well
as environmental issues are other obstacles, he said.
Plaiphol agreed fears of increased political instability would distract the government's
attention from economic issues.If the political situation worsened, consumer confidence,
tourism and other economic sectors would be affected, he said.
Plaiphol said the US economy would likely return to growth of 1.8 per cent next year,
followed by Japan (1 per cent) and the European Union (0.5 per cent).
These major economies will be the locomotives of global growth, which will in turn lift
the export-dependent Thai economy.On oil prices, a stronger global recovery could lead
to crude breaking through US$100 (Bt3,300) per barrel, which would result in
inflationary pressure, he said.
On the Map Ta Phut deadlock, Plaiphol said it remained unclear how fast the government
could resolve the problem after the Central Administrative Court recently suspended 76
industrial projects worth a combined Bt400 billion.On the Bt1.43-trillion Thai
Khemkhaeng stimulus package covering 2010-11, he said the government needed to
increase the efficiency of its spending programmes.Patamawadee said the Kingdom's
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recovery would be export-driven, due to the recovery of the US, European and Japanese
economies
• Rice import to boost supplies, check prices
India is planning to import rice to shore up supplies and is negotiating price and
quantities with Thailand and Vietnam.
An empowered group of ministers will meet on Friday to decide on the issue, commerce
minister Anand Sharma said today.“We are exploring the option of government-togovernment deals with Thailand and Vietnam. Talks have started and prices will be
negotiated,” he told reporters on the sidelines of a meeting of state industry ministers.
Officials said this was not the first time that the country would be importing rice. The
country has been importing in small quantities but has traditionally been an exporter.
The government will decide on the quantity later this week. However, this would not
make India a net importer.
Officials said the government was planning to shore up supplies to meet any adverse
situation — drought or excess rainfall — next year and to stop domestic food prices from
pushing up the inflation rate.
Sharma said the country had sufficient stocks of foodgrains. On October 1, the Centre
had a buffer stock of 28.4mt of wheat against a norm of 11mt. It has a rice buffer stock of
14.5mt, far above the norm of 5.2mt.
Farm expert Y.K. Alagh said, “The government could be going in for import to meet the
requirements in June next. But that is not the right strategy. The country would be
importing at a high price and selling at a subsidised rate here. It is bad economics that a
poor country like ours is subsidising the farmers of rich countries.”
India is the world's second-largest rice producer, but this year’s crop is expected to be far
below the bumper harvests of the two previous years. Production in the kharif season is
estimated to fall sharply to 69.45mt from 84.58mt in the last season.
• Thai Recession Probably Eased Amid Global Recovery
Thailand’s economy probably contracted the least in a year last quarter as a nascent
global recovery and government spending began to pull the nation out of its first
recession in a decade.
Gross domestic product fell 3.2 percent in the third quarter from a year earlier, after
contracting 4.9 percent in the previous three months, according to the median estimate of
16 economists surveyed by Bloomberg News. The government will release the data on
Nov. 23 at 9:30 a.m. in Bangkok.
The benchmark stock index has risen two straight quarters since the start of April and the
baht gained 4.5 percent against the U.S. dollar this year as companies including Hana
Microelectronics Pcl report rising orders. Prime Minister Abhisit Vejjajiva said yesterday
the government will pursue its stimulus spending plans amid lingering “political
problems.” “A gradual global recovery, fiscal stimulus packages and easy money policy
are resulting in improved GDP performance,” said Luz Lorenzo, an economist at ATRKim Eng Securities Inc. in Manila. “The improvement will be gradual. This is barring
any grave political developments.”
Malaysia may report today that its recession eased last quarter, according to a Bloomberg
News survey.
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Interest Rates The Bank of Thailand said last month Southeast Asia’s second-largest
economy is “out of recession”, citing improving employment and quarter-on-quarter
GDP expansion. Still, the central bank refrained from raising borrowing costs for a fourth
straight meeting on Oct. 21 as it judged the nation’s economic recovery to be at “an early
stage.”
There may be cause to keep interest rates low for a while as economists including
Morgan Stanley Asia Chairman Stephen Roach say the global recovery faces risks.
“My outlook remains extremely cautious although we can see the worst is over” for the
global economy, Roach said in Singapore today. Asian economies are still too export
dependent, he said.
Thailand’s consumer confidence fell for the first time in five months in October on
concern that the economic recovery may be derailed by rising oil prices, politics and a
court case that has stalled 76 government-approved projects on pollution complaints.
Political Risk At least five people were injured after a bomb exploded at a Nov. 15
protest against former Prime Minister Thaksin Shinawatra, the Nation newspaper
reported this week. Power in Thailand has shifted between parties allied to Thaksin and
his opponents since the 2006 coup that ousted him, with protests and leadership changes
hurting successive governments’ ability to implement spending plans.
Abhisit’s government has managed to stay in power for almost a year and implemented a
116.7 billion-baht stimulus package in the first half of 2009. It plans to spend 1.3 trillion
baht on transportation, logistics, health and education projects over three years to help
revive the economy. The fiscal spending helped “stop the economic contraction” and
prevented unemployment from jumping, Abhisit said Nov. 16.
Return to Growth
The government expects the Thai economy to return to growth this quarter. Thailand’s
exports dropped the least in 11 months in September as more than $2 trillion in stimulus
by governments worldwide helped revive global demand.
Hana Microelectronics, which makes parts for computers and mobile phones including
Apple Inc.’s iPhone, has restored its workforce to “pre-crisis” levels and will spend about
$20 million by March 31 to expand capacity and meet rising demand, Chief Executive
Officer Richard Han said. The central bank has kept its benchmark interest rate
unchanged at 1.25 percent since cutting it by 2.5 percentage points from December to
April. Thai consumer prices rose for the first time in October after falling for nine
consecutive months. “The recovering global economy will lead to improving exports and
tourism,” Abhisit said yesterday. “The government is also committed to spend money
under our stimulus plan. Everything still goes as planned despite political problems” that
may persist into next year, he said
• Vietnamese economy poses no threat to Thailand
The Vietnamese economy poses no immediate threat to Thailand, which has healthy
investments in that country, says the Thai ambassador in Hanoi.
Vietnam said it would put in a high-speed train, similar to the bullet train in Japan,
running from Hanoi to Ho Chi Minh City. The news excited Thai readers but most did
not realise that work on the railway won’t start until 2036, or nearly 30 years into the
future.Pisanu Chanvitan says Thailand's economy is still far more advanced than
Vietnam's.However, the ambassador told Thai Rath newspaper, Vietnam has certain
advantages including political stability, thanks to its one-party rule and cheap labour.
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Last year, Vietnam's economy grew 3%.Mr Pisanu said that medical advances in
Vietnam lag far behind Thailand. For difficult cases, well-to-do patients still travel to
Thailand for treatment because Vietnam's health care expertise is lacking.
Nor was Thailand's status as the world's top rice exporter under threat from Vietnam.
Mr Pisanu said Vietnam exported about 5 million tonnes of rice last year while Thailand
exported 8-9 million tonnes.Thai rice is more expensive because of its higher quality
especially the world famous Hom Mali, while Vietnam exports cheaper varieties.
Vietnam can face typhoons several times a year, causing extensive damage to rice fields.
Vietnam's rice cultivation area is similar to Thailand's, but Vietnam has a growing
population. As its population grows, Vietnam will probably export less rice.
Vietnam's rulers like to talk about their plans for the economy, but sometimes these
projects can be many years off.Vietnam said it would put in a high-speed train, similar to
the bullet train in Japan, running from Hanoi to Ho Chi Minh City.
The news excited Thai readers but most did not realise that work on the railway won't
start until 2036, or nearly 30 years into the future.In 1990, Vietnam began to open the
country to foreign direct investment, creating special industrial zones and expanding the
economic zone in Ho Chi Minh City.
Thailand is ranked 9th among foreign investors in Vietnam. Investment is concentrated in
agri-business, cement, real estate, and motorcycle parts.
Mr Pisanu said Thailand exported more than 10,000 tonnes of fruit to Vietnam last year,
including longan, mangosteen, durian and mango.Food processing including canned fish
is another bright prospect for Thai exporters. Several Thai canneries have set up
operations in Vietnam and are doing good business.
Engineer is a
'political victim'
Sivarak Chutipong, 31, the Thai engineer arrested in Cambodia on a spying charge, is
being used as a pawn in the diplomatic dispute between Thailand and Cambodia, argues a
Matichon newspaper writer.
Sivarak worked for Cambodia Air Traffic Services, a subsidiary of Thailand's Samart
Telecom.He was arrested last week on a spying charge, after he allegedly transmitted the
flight schedule of former prime minister Thaksin Shinawatra and Cambodia's premier
Hun Sen to Thailand.The newspaper argues the engineer was a victim of the conflicts
between Thailand and Cambodia concerning Hun Sen's appointment of Thaksin as
economic adviser.If Sivarak is found guilty by a Cambodian court, he could be jailed for
7-10 years and/or fined 50,000-250,000 baht.Deputy Prime Minister Suthep Thaugsuban
said Thaksin's flight schedule was not secret information and Thailand already knew
Thaksin's likely flight movements.Suthep argued that Cambodian authorities may have
misunderstood the intention of the government, which never intended to inflict any harm.
Yet the Matichon writer was not satisfied with explanations offered by the Thai Foreign
Ministry and Samart Telecom in defence of Sivarak.The government, the writer said,
should protect Sivarak's honour and tell international observers that Cambodia's
allegations are trumped up.
MiscellanCambodia has expelled all Thai staff from Cambodia Air Traffic Services after
a Thai engineer on staff was charged with spying.
Phnom Penh has filed national security charges of stealing classified information against
engineer Sivarak Chutipong.Cambodia has now ordered all Thai nationals working for
69
CATS to leave the company and prohibited them from re-entering until the legal
proceedings against Mr Sivarak are completed, Samart Corporation Plc president
Watchai Wilailuck said.CATS, a fully owned subsidiary of Bangkok-based Samart, holds
a concession to run air traffic control services in Cambodia.The firm employs nine Thai
officials at Cambodian airport, in management or senior engineering positions. About
200 other staff are Cambodians.Mr Watchai was told Cambodian authorities would send
their own people to run the company."We need to follow Cambodia's order and are
asking the Thai government to negotiate with Cambodia.'We have nothing to do with
their diplomatic dispute, but it is affecting our business," Mr Watchai said.
• Thailand and Cambodia are signatories to an investment protection
agreement, to protect each other's private businesses.
The next few weeks would be an improper time for any political demonstration as all
Thai people were happily preparing to show their loyalty to His Majesty the King on his
82nd birthday, government chief whip Chinnaworn Boonyakiat said on Thursday.
Mr Chinnaworn was commenting on the mass anti-government rallies planned from Nov
20 to Dec 3 by the pro-Thaksin United front for Democracy against Dictatorship (UDD).
Jatuporn Promphan, a core leader of the UDD, has announced the red-shirts are
detenmined to bring down the the Democrat-led coalition government before the end of
this year.
Deputy Prime Minister for security affairs Suthep Thaugsuban said on Wednesday that
although the UDD and its supporters have the constitutional right to assembly and
expression, they must not step outside the law.
The government would consider again imposing Internal Security Act if the rally seemed
likely to spin out of control. The government would maintain law and order.
Prime Minister Abhisit Vejjajiva yesterday declined to respond to the red-shirts'
determination to bring down his government within the next few weeks. He said his
government would ensure that Thai people are able to celebrate the New Year festival.
•
Singapore, Thailand
Thailand may report Nov. 23 that its recession eased last quarter, according to a
Bloomberg News survey.
Malaysia’s $195 billion economy is forecast to shrink 3 percent this year, less than an
earlier prediction for a contraction of 4 percent to 5 percent, Najib said last month. GDP
may expand as much as 3 percent in 2010, he said.
The government may raise its growth forecast for 2010 as it aims to tap private
investments to help spur the economy, Second Finance Minister Ahmad Husni Hanadzlah
said Nov. 13. Najib said this month there is a possibility Malaysia resumed “positive
growth” in the third quarter.
“Recovery in Malaysia is undeniably taking place,” said Irvin Seah, an economist at DBS
Bank Ltd. in Singapore. “Judging from the strong economic performance coming from
Singapore, Korea, China and Indonesia, an upside surprise to third-quarter GDP growth
should not be discounted.”
‘Significant Improvement’
Industrial production fell the least in 11 months in September, and the export slump has
eased from a 29.7 percent drop in May. Malaysia’s third-quarter economic performance
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was definitely “a significant improvement from the second quarter, and the fourth quarter
we have a very high degree of confidence that it will be positive,” central bank Governor
Zeti Akhtar Aziz said last week.
Policy makers are starting to pull back some of their stimulus measures as the global
recovery gains momentum. Malaysia plans to cut government expenditure to rein in its
budget deficit next year, aiming to narrow the shortfall to 5.6 percent of GDP from a 22year high of 7.4 percent in 2009.
Bank Negara Malaysia has left its benchmark interest rate unchanged at a record-low 2
percent for five straight meetings to support the country’s nascent economic recovery.
Zeti said last week “monetary policy now will continue to be focused on supporting the
domestic demand,” adding that the current interest rates are appropriate.
Cautious Outlook
There may be cause to keep interest rates low for a while as economists including
Morgan Stanley Asia Chairman Stephen Roach say the global recovery faces risks. “My
outlook remains extremely cautious although we can see the worst is over” for the global
economy, Roach said in Singapore today. Asian economies are still too export dependent,
he said. Malaysian policy makers next meet on Nov. 24. All 10 economists surveyed by
Bloomberg News forecast the overnight policy rate will be maintained at 2 percent.
“Given that the government is scaling back public-sector spending next year and wants to
sustain the recovery momentum via private-sector spending, we expect monetary policy
to support this next leg of the recovery process,” said Suhaimi Ilias, the chief economist
at Maybank Investment Bank Bhd. in Kuala Lumpur.
•
Hmong Refugee Crisis in Thailand, Laos Deepens
Thailand's Army Commander, General Anupong Paochinda, as well as Prime Minister
Abhisit Vejjajiva, have mobilized over 320 heavily-armed troops to the Lao Hmong
refugee camp at Ban Huay Nam Khao, Thailand, and are reportedly preparing for the
potential mass forced repatriation of the refugees prior to the start of the Southeast Asia
Games (SEA Games) in Laos. The forthcoming SEA Games, slated to begin in
December, have been darkened by the intervention by the Lao army and secret police in
Vientiane and elsewhere in Laos who, along with special units of the Vietnam Peoples
Army (VPA), have reportedly arrested, detained or imprisoned over 1176 Laotians this
month.
Singapore
• Political Front
• Economic Front
• Singapore's exports down 6.1% in October compared to a year ago
Singapore's key exports contracted for the 18th month in a row, falling by 6.1 per cent in
October from a year ago.
This was much weaker than market expectations of a 0.2 per cent climb, hurt by weak
demand from the US and European Union.
With rising unemployment in the US, consumers there are holding back on spending.
Singapore's exports to the US fell by 10.9 per cent on year earlier.
Meanwhile, demand from Europe was also weak with shipments falling by 21.7 per cent.
All that helped to push the headline export numbers lower by 6.1 per cent on year.
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When compared to the previous month, they fell by 13 per cent on a seasonally adjusted
basis, reversing a three-month upward trend. This is one of the sharpest drops in about
seven years. Alvin Liew, economist, Standard Chartered, said: "When we look at
underlying reasons, it could be that the inventory restocking cycle is almost completed.
That's probably one of the downsides for a sector like electronics. At the same time,
Christmas orders were not as rosy a picture as some of us might be anticipating."
Irvin Seah, economist, DBS Group Research, said: "Another factor I want to highlight is
the technical aspect. On a non-seasonally adjusted basis, the NODX only declined by 2.3
per cent month-on-month. But on seasonally adjusted basis it was down by 12.6%.
“Typically when you do seasonal adjustments, the month-on-month swing will be
smoothed out. But in this case it was the opposite. I think to some extent it was
aggravated by technical aspect, which is how the Department of Statistics does their
seasonal adjustments."
Shipments of electronic products dropped 13.8 per cent on year, mainly due to lower
exports of integrated circuits and disk drives. Meanwhile, exports of non-electronic
products declined by half a percent, led by lower exports of petrochemicals, civil
engineering equipment parts and electrical power machinery.
Despite the weaker than expected numbers, some analysts remained positive.
Mr Seah added: “The data coming from some regional economies are pretty good in
October, so in a way I don't think this October NODX number would in any way suggest
that the recovery process has been derailed.
“Our view is that the recovery process has remained intact. It's just that this V shaped
recovery in Asia is gradually giving way to a square root shaped recovery.
“In other words we are expecting a slightly more subdued pace of growth going forward.
Still positive, but down to a single digit growth rather than double dig growth which we
have seen in last two quarters.” They said the headline exports numbers may turn positive
in November, thanks to an improving global economy and a low comparison base.
But they note that for exports to be sustained, recovery in the employment situation in
key markets is critical. Mr Liew added: "For exports to be sustained, one of the more
important factors would be to see a recovery of employment situation in key export
markets like G3 economies. We need to see employment situation stabilising. We need to
see net job creation to start taking place, also at the same time to see unemployment
coming down." Singapore's non-oil domestic exports is a closely watched barometer of
the health of the trade-dependent economy.
Overall, the government is expecting GDP to contract by 2 to 2.5 per cent this year
• Singapore and Finland hope to boost economic and social ties
Singapore Prime Minister Lee Hsien Loong hosted a lunch on Wednesday for his Finnish
counterpart Matti Vanhanen. Mr Vanhanen is in Singapore for a two-day official visit. He
met both Mr Lee and President S R Nathan on Wednesday morning.
In a speech at the official lunch, Mr Lee said that Singapore and Finland hope to enhance
the economic and social ties between them. He noted how, despite the geographical
distance, both Singapore and Finland share many similarities. For example, both are
small states which rely on international diplomacy and a globalised economy for peace
and prosperity.
There are currently over 600 Finns living and working in Singapore, and more
Singaporeans are also heading to Finland for further studies.
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Mr Lee said both sides can build on these links by promoting more cultural, arts and
student exchanges. And in the area of research and development, both leaders said more
can be done to promote joint projects. There are close to 100 Finnish companies
operating in Singapore. For example, Neste Oil is investing over a billion dollars to build
the world's largest biodiesel plant in Singapore.
Mr Lee said: "Finnish businesses can use Singapore as a springboard to the region.
Singapore is at the heart of Asia, which is a dynamic region of the world. We provide a
conducive business environment for many global companies which (are) based here to
service Asia.
"Finnish companies can also leverage on the knowledge and networks of our local firms
to expand their reach into China, India, ASEAN and other Asian markets."
Mr Vanhanen said: "Finland strongly believes that working together will benefit us all.
As an example, an important one, both Singapore and Finland have expertise in matters
related to environment and clean technology which we can exploit for a wider benefit."
• Singapore's growth forecast for 2009 maintained at -2.5 to -2.0%
Singapore on Thursday declared a severe recession over as data showed its economy
grew for the second straight quarter in the three months to September.
Official data released on Thursday showed gross domestic product (GDP) expanded 14.2
per cent in the July-September period on a quarter-on-quarter annualised basis following
a 21.7 per cent surge in the previous quarter.
"Effectively, the recession in Singapore is over," Ravi Menon, permanent secretary with
the Ministry of Trade and Industry (MTI), said at a media briefing.
"Economies around the world are now turning the corner... Singapore has benefited from
these global and regional trends." Year-on-year, Singapore's GDP grew 0.6 per cent in
the third quarter compared with a 3.3 per cent contraction in the April-June period, the
MTI said in its third-quarter economic survey.
The 0.6 per cent annual growth in the July-September period was the economy's first
positive showing since the third quarter of 2008, when the city-state slid into a recession.
Growth in the third quarter was powered by the key manufacturing sector, which posted
expansion of 26.6 per cent on a quarterly basis following a 58.5 per cent surge in the
previous quarter, the ministry said.
Other sectors also turned in a positive display including the wholesale and retail
industries, which grew 10.8 per cent after a 7.9 per cent increase in the second quarter, it
said. Wholesale and retail make up two-thirds of the economy.
In its outlook for 2010, the ministry forecasted economic growth of 3.0-5.0 per cent while
maintaining its existing projection of a contraction of 2.0-2.5 per cent this year.
"Global economic developments suggest that the recession has ended in most countries,"
the ministry said in a statement accompanying the quarterly survey. "Singapore's
economic outlook for 2010 will be closely linked to global conditions."
The city-state's trade-reliant economy was the first in Asia to sink into a recession last
year as the global downturn hit demand for its exports, especially from the United States.
Its worst recession since gaining independence in 1965 took place in 2001 when GDP
shrank 2.4 percent.
The US economy's recovery from its recession will be key to Singapore's growth
prospects, the ministry said. "The key economy to watch is the US. We see the recovery
there continuing into 2010 but at a sluggish pace," said Menon. "We do not expect a
73
collapse in US private demand, however... but private demand will nonetheless be
sluggish," he said. The US economy, a major market for Asia's export-led economies
including Singapore, has emerged from a prolonged recession that started in late 2007 as
its GDP grew 3.5 per cent in the July-September period.
It was the world's largest economy's first economic expansion since the second quarter of
2008 but analysts have cautioned the recovery remained fragile
•
Asia urges Obama to refocus on free trade
Asian leaders on Friday called on President Barack Obama to reassert US leadership on
global free trade before his Sunday meeting in Singapore with national leaders
representing half the world’s economy.
Their statements focused on the need for the US to back aggressively the resumption of
the Doha trade round but they also reflect underlying wariness about the rapid rise of
China.
Mr Lee said Washington had been preoccupied for the past eight years by Iran, Iraq and
Afghanistan, and had missed the opportunity to conclude a trade agreement with the 10
countries of the Association of South East Asian Nations.Meanwhile, China had
concluded a deal with Asean, and with other countries including South Korea and India.
A further eight years of protectionism, assuming Mr Obama won a second term and
without a change of policy, and the US would be “out of the economic race, and if you
are out of the economic race you will lose in the long run”, he said.One of the strongest
calls came from Najib Razak, Malaysia’s prime minister, who told the Asia Pacific
Economic Cooperation summit in Singapore that progress on trade liberalisation was
“imperative” for global recovery. Their statements were backed by a formal statement on
Thursday from the foreign and trade ministers of the 21 Apec countries, which include
China, Japan and South Korea, calling for urgent action on Doha.US officials say they
are “very aware” of the clamour around the region and added that Mr Obama will address
trade in his speech on Friday in Tokyo – the only full-length address he will deliver on
his seven-day trip. The White House would not say whether Mr Obama was preparing to
launch new initiatives, but has dropped hints that the president may pledge to revive the
moribund US-South Korea free trade agreement on his visit to Seoul next Thursday.
Either step would be controversial in Washington, where members of Mr Obama’s
Democratic party have shown hostility to existing and new trade deals as US joblessness
rises.
• S'pore, Philippines satisfied with close & co-operative relationship
Singapore and the Philippines have expressed satisfaction with the close and cooperative
relationship shared over the past four decades and they are confident the enduring
relationship could be further strengthened in the years ahead.
This is the view of Foreign Affairs Minister George Yeo and Philippine Secretary of
Foreign Affairs Alberto Romulo after their meeting in Manila on Saturday afternoon.
Mr Romulo also thanked Mr Yeo for Singapore's prompt humanitarian assistance offered
to the Philippines in the wake of Typhoons Ketsana and Parma.
On regional issues, the ministers agreed both countries would continue their partnership
and consultations to help make ASEAN an attractive place for more foreign investment.
They also agreed on the importance of ASEAN continuing its cooperation with its
dialogue partners and welcomed the US' increasing engagement of the region.
74
Mr Yeo and Mr Romulo officiated the opening of the new Singapore Embassy in
Bonifacio Global City, Taguig City, Manila.
They also attended a cultural concert to commemorate the 40th anniversary of the
establishment of Singapore-Philippines bilateral relations.
Mr Yeo, who is on a four-day official visit to the Philippines, will return to Singapore on
Sunday
• 3 lessons for S'poreans to learn from the way downturn was handled, says
Shanmugam
According to Law Minister K Shanmugam, there are three lessons for Singaporeans to
take away from the way the Government, employers and unions responded to the
downturn.
Managing the country's finances prudently and in a disciplined way – is the first lesson to
be learnt from the financial crisis, said Mr Shanmugam.
Singapore's strong reserves were vital, as it enabled the Government to be decisive in
introducing the S$20.5 billion Resilience Package.
The second lesson is the need to build on mutual trust.
A key factor that has helped Singapore come out of the downturn is the close relationship
between the government, employers and unions. Hence, Mr Shanmugam feels it is
critical for the labour movement to invest in union leaders who understand the
fundamentals of Singapore's tripartite system.
Mr Shanmugam said: "You know very often we read in international rankings and
reviews that in Singapore, you don't have unions which fight for workers or we rank low
in this, that or the other.
"The reality is it all proceeds from misunderstanding because to protect workers rights in
a real genuine sense, what you need is empowered unionists.
"And for a government to come in and make sure that there is equity between the
employers and employees and working together, this is something unique that we have in
Singapore and never, never let that go." Mr Shanmugam said the third lesson is that
Singaporeans must be proactive when responding to changing circumstances.
He added: "To thrive in the post recession global economic climate, Singapore must
strike first. We must make full use of our advantages - our small and nimble size; our
strong spirit of tripartism, an excellent business environment and the world's number one
workforce to keep a few steps ahead of our competitors.
"How we harness opportunities, mitigate risks and make the kinds of choices we make
today, will have a direct impact on the future of Singapore and the livelihood of
Singaporeans. It is our responsibility to ensure that the choices we make will have a
positive and lasting impact." In this regard, the Ong Teng Cheong Institute for Labour
Leadership has been in the forefront - conducting its "Upturn the Downturn" workshops
which have been attended by some 1,300 unionists.
From 2010, the institute will start a pilot programme on e-learning, so that unionists need
not absent themselves from work to attend courses. This was revealed by the institute's
chairman and Finance Minister Tharman Shanmugaratnam.
• Social Front
• PM Lee confident Buddhist community will help keep society harmonious
Prime Minister Lee Hsien Loong, speaking at the opening of the S$12 million new
building of the Singapore Buddhist Federation on Friday, said he is confident that the
75
Buddhist community here will help maintain a harmonious, cohesive and compassionate
society. "You contribute to the basic tone of Singapore society and the general mood of
tolerance and understanding amongst the different communities, and this has helped to
maintain racial and religious harmony," said Mr Lee.
Buddhists in Singapore form one of the largest religious groups in the country, and
Buddhist organisations have been reaching out to younger Singaporeans through
community services and social networking sites like Facebook.
The Singapore Buddhist Federation, which is the apex umbrella body of the Buddhist
community, has been playing a strong community role. It has been conducting classes
and student care centres, as well as running clinics and rehabilitation centres.
The federation has also raised funds for cultural organisations and for causes such as
earthquake relief. All these efforts, Mr Lee said, have benefited Singaporeans, regardless
of race and religion.
The prime minister added that the federation is a valued partner in the government's
community engagement efforts. It sits on various national forums such as the Presidential
Council for Religious Harmony, the National Steering Committee on Racial and
Religious Harmony, and it supports the inter-racial and religious confidence circles.
In his speech at the event to the mark the federation's diamond jubilee, the president of
the organisation, Venerable Sik Kwang Sheng, emphasised that as Buddhists live in a
multi-racial and multi-religious society, it is important for them to promote activities
which foster harmony and understanding.
Vietnam
• Political Front
• Economic Front
•
Vietnam-Kuwait eco. relations flourishing -- ambassador
Vietnamese Ambassador to Kuwait Nguyen Danh Sao stressed Sunday the significance
of his country's relations with Kuwait and the development of ties, specifically at the
economic level.
Speaking to Kuwait News Agency (KUNA), the ambassador noted that the latest boost to
bilateral relations was the construction of a refinery in central Vietnam by Kuwait
Petroleum International (Q8), PetroVietnam, Idemitsu Kosan Co. and Mitsui Chemicals
Inc. of Japan.The Vietnamese ambassador noted that relations between the two countries
dated back to 1976, adding that Kuwait was among the first Middle Eastern countries to
establish diplomatic relations with his country, a move he said was highly appreciated by
Vietnam because it underscored Kuwait's interest in bilateral cooperation in different
fields.
He said that since then, relations between the two countries witnessed marked
development, especially with the exchange of high-level visits. The Vietnamese president
came on an official visit to Kuwait in 1995, and His Highness the Prime Minister of
Kuwait Sheikh Nasser Al-Mohammad Al-Ahmad Al-Sabah visited Vietnam in May
2007. Vietnamese Prime Minister Nguyen Tan Dzung, in turn, visited Kuwait in March
of this year.Such visits have a great impact on the enhancement of relations between the
two countries, he said, adding that the Vietnamese premier's visit in particular was of
economic significance owing to the large economic delegation that accompanied the top
state official.
76
The Vietnamese ambassador also pointed out the recent visit paid by Kuwait's Minister of
Oil and Information Sheikh Ahmad Al-Abdullah Al-Sabah to Vietnam in September,
whereby all affairs relevant to oil relations between the two countries were discussed,
including the construction of a Kuwaiti refinery in Vietnam.
Ambassador Sao emphasized that the inauguration of a Kuwaiti embassy in the political
capital, Hanoi, together with a consulate in the commercial city, Ho Chi Minh, reflected
the Kuwait's government's desire to strengthen the economic, commercial and investment
relations between the two sides.
He also said that the two countries signed an agreement to avoid double taxation along
with the agreement for the promotion and protection of investments. This means making
available the highest protection degrees to Kuwaiti investments in Vietnam.
Kuwait and Vietnam, along with a Japanese company, will establish an oil refinery with
investments amounting to USD eight billion. The refinery is expected to begin operating
in 2013, and will depend mainly on Kuwaiti crude oil.
On upcoming next meetings between the two sides, the ambassador said that preparations
were underway for the first meeting of the Joint Committee for the Economic and
Commercial Relations which would convene in Hanoi in December.
On a different note, the ambassador said that trade exchange between the two countries
was still not at the aspired level. The trade balance stood at USD 120 million last year.
There are great opportunities for exports to Kuwait, as Vietnam is among the agricultural
countries in Asia, he said, adding that among the products produced in his country were
rice, coffee, tea, sea food products, alongside electronics and electric appliances,
equipment and other industrial products.
Asked about investments in Vietnam, Ambassador Sao said that the problem always lied
in the lack of information about Vietnam, and thus, several entities in Vietnam were
working to dissemination information relevant to investment through conventional
communications, specifically the internet.
He also expressed the embassy's readiness to provide all necessary information and
consultancy services for Kuwaiti investors and companies.
Ambassador Sao noted that Vietnam was deemed one of the best countries for investment
in Asia, adding that many Japanese, Korean and British companies launched projects in
his country to benefit from skilled but low cost labor and incentives offers by the
government to foreign investors.
Regarding Kuwaiti investors, he said they had ample opportunities for investment in the
banking sector, financial companies and stock exchanges, real estates and tourism,
alongside agriculture.
The agricultural sector, he said, was deemed the most significant line of investment in
Vietnam, owing to the availability of land, water, and specialized labor. This helps create
opportunities for export, especially to countries with food shortage.
As for traveling to Vietnam, Ambassador Sao said that although Vietnam and the Gulf
and Middle Eastern regions were separated by seven flying hours, they were linked
through a number of airlines which operate daily flights between the Gulf countries and
Vietnam.
Ambassador Sao added that negotiations kicked off last year between Kuwait and
Vietnam over the open air issue, and to arrange for launching direct flights between the
two countries, a matter that would lead to significant development in the relations.
77
He noted that a delegation from the Vietnamese Ministry of Commerce and Industry
recently visited Kuwait, accompanied by a number of businessmen, to look into
cooperation opportunities between the two countries.
With regard to the number of Kuwaitis who visited Vietnam every year, Ambassador Sao
said that an average of 600 businessmen and tourists visited his country every year,
adding that the entry visa to Vietnam could be obtained immediately if the residency was
less than 15 days, while processing could take up to five days if the period of stay was
longer or in the case of a multiple entry visa.
As for Vietnamese labor in Kuwait, Ambassador Sao said that these currently numbered
around 100 workers, employed in the construction and oil sectors, adding that there may
be an opportunity to increase this number given that Kuwait was an open labor
market.(end) amf.ema KUNA 151015 Nov 09NNNN
Nuclear power economically unsound, assembly warns
Vietnam should scale back its nuclear program, National Assembly representatives
argued Friday, cautioning that massive spending on the country’s first nuclear power
project would burden the economy. In a report released last week, the government said
commercial nuclear power was necessary in Vietnam considering the country’s fastgrowing demand for electricity.
However, Nguyen Minh Thuyet, a representative from Lang Son Province, was quoted
by online news website VietNamNet as saying that Vietnam is not ready to build the twoplant project in the central coastal province of Ninh Thuan.
The project is estimated to cost US$12 billion, 75 percent of which will be funded by
foreign loans, he said. The figure could grow to $16 billion if more modern technology is
used.“We will be caught off guard when the estimate surges,” Thuyet said, noting that
government projects always exceed their spending estimates. He said $12 billion is
already half of the country’s national reserves.
Despite the massive spending, the project will only be able to produce 4.4 percent of
domestic power needs in 2025, he said. Moreover, Thuyet pointed out that nuclear power
prices would be three times higher than current power rates..
Risky business
Thuyet also said Vietnam would need to spend $900 million to import uranium for the
two power plants. Then the country would have to buy new nuclear materials worth $320
million every 18 months.
Representative Le Nhu Tien from Quang Tri Province said he was also worried about the
fact that Vietnam would have to depend completely on foreign materials.
“Global uranium output can only meet 57 percent of global nuclear demand… The
government needs to assess the long-term material supplies needed for the project.”
Several representatives said the government should only build one nuclear power plant at
the moment, arguing that one plant would be better given the current economic situation
and that the pressure on developing human resources for two power plants at the same
time could also be eased.
But Industry and Trade Minister Vu Huy Hoang said the government had calculated
power supply and demand carefully. “The power shortage will be critical in 2020, so it is
necessary to build two nuclear power plants.”
“Both coal and oil reserves are running out, and we don’t have any other alternative
energy resources right now,” newswire VnExpress quoted Hoang as saying.
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The government has already launched research on energy solutions, said Hoang, but he
warned that it would be a long time before the country would be able reduce its
consumption of electricity and oil.
The National Assembly will make a final decision on the government’s nuclear power
plan at the end of the ongoing session later this month.
If the two plant project is approved, construction would start in 2014 in order to open
commercial operations in 2020
• Vietnam invites investors
NOW is a good time to invest in Vietnam as the country regains its pre-recession
economic pace and becomes even more business-friendly, the visiting Vietnamese
President said on Tuesday.
Mr Nguyen Minh Triet noted that Vietnam's economy had gone from strength to strength
in the first three quarters of this year, and is expected to expand by a better-than-expected
5.2 per cent for the entire year.
'We should grasp the opportunity of the recovery to promote partnerships between
Singapore and Vietnam,' he told about 350 business executives from Singapore and
Vietnam at a lecture titled 'Vietnam - Partnership For Progress'.
'You will enjoy great opportunities because of the excellent political relations between
our two countries,' he said, adding that Vietnam hopes Singapore would continue to be its
leading strategic partner in the region.
The lecture, organised by the Singapore Business Federation, was chaired by Senior
Minister S. Jayakumar. Speaker of Parliament Abdullah Tarmugi and Minister of State
for Trade and Industry Lee Yi Shyan also attended the lecture.
The President had begun on Monday a two-day state visit to Singapore, with his main
focus on attracting investments.
• India may import rice from Thailand, Vietnam
Traditional rice exporter India is looking at importing rice from Thailand and Vietnam
through diplomatic deals, Trade Minister Anand Sharma said on Tuesday.
This would be the first time in 20 years that India imports the grain.
The federal government might also consider banning cotton exports to improve domestic
market supplies, Sharma said.Three state-run trading firms last month floated rice import
tenders totalling 30,000 tonnes and received 18 bids ranging from $373 to $599 per
tonne.Of the three, MMTC Ltd (MMTC.BO: Quote, Profile, Research) said prices quoted
in the bids were too high.
• Kuwaiti productive participation in charity Bazaar in Vietnam
The Bazaar organizer by consuls' wives in Ho Chi Minh City kicked off here on Sunday
aiming to raise funds for various charity activities in the country, and the event was a
great opportunity to express solidarity with the concerns of this region, Kuwaiti Consul
General in Ho Chi Minh Najib Al-Bader said.
The official lauded the remarkable and organized Foreign Ministry contributions in the
bazaar which also represented the culture and folklore of Kuwait through the products
and items on offer.The wife of the consul Reem Al-Sharrah expressed her joy over
participation in this event, pointing out that Kuwait has a remarkable pavilion this year
with several dishes from the Kuwaiti cuisine, among other interesting items.
She noted there was a good number of visitors to the pavilion, providing a chance to
exchange expertise and knowledge and awareness about culture between people from
79
various countries.The Kuwaiti pavilion was visited by a host of diplomats and senior
officials in Ho Chi Minh.
• Social Front
Cambodia
• Political Front
• ASEAN and the Cambodia-Thailand row
The row between Cambodia and Thailand has been worsening recently. The decision of
the Cambodia government to appoint former Thai leader Thaksin Shinawatra as its
personal and economic advisor appears to be a clear case of interfering in Thai internal
affairs.
The situation between the two countries is rather sensitive. Besides this row, the border
dispute between the two countries is still fragile, while the long dispute over Preah
Vihear Temple is still in limbo.
ASEAN has, for some time, been paying closer attention to the relationship between
these countries. The recent call from ASEAN to both countries to end the row over the
appointment of Thaksin has been met with reluctance from both countries. Given the
scope of the dispute, this row is a test case for ASEAN.
ASEAN was set up to handle tension, disputes and conflicts in the region. Any conflict
that emerges between or among members is solved by way of musyawarah mufakat, or
negotiation and mutually agreed settlements, the terms recognized by all ASEAN leaders.
This step involves respecting the integrity and independence of each member country and
strongly upholding the principle of non interference.
Over time, the way disputes have been resolved has gradually improved. This
improvement, however, still reflects the spirit of musyawarah mufakat.
The present row is not only sensitive, but also somewhat political. The situation is
heavily colored and is also exacerbated by other disputes, in particular the ongoing border
dispute. Since the row is political, it is therefore necessary to see whether the dispute
settlement mecha-nism available under ASEAN is appropriate.
The use of legal mechanism, through negotiation or diplomacy, is therefore the best
possible solution.
The regional conflicts taking place in most parts of the world have been successfully
resolved by negotiation between concerned parties. The Latin American crisis in 2008 is
an important example of the successful settlement of regional disputes.
The dispute between Columbia and Ecuador was negotiated in a summit hosted by the
Dominican Republic.
What ASEAN could do to resolve the current dispute could be to not only call on the
parties to end the conflict, but provide a concrete resolution, such as providing support or
facilitating a meeting or summit between the two parties.
ASEAN's efforts, of course, will not succeed without the good faith of the parties and
their genuine intention to end the crisis. Thailand on the other should refrain from using
force or the threat of using force. On the other hand, Cambodia should take into account
the sensitivity of the "Thaksin Shinawatra" issue in the eyes of the Thai people.
• Economic Front
80
•
Thailand and Cambodia are signatories to an investment protection
agreement, to protect each other's private businesses.
The next few weeks would be an improper time for any political demonstration as all
Thai people were happily preparing to show their loyalty to His Majesty the King on his
82nd birthday, government chief whip Chinnaworn Boonyakiat said on Thursday.
Mr Chinnaworn was commenting on the mass anti-government rallies planned from Nov
20 to Dec 3 by the pro-Thaksin United front for Democracy against Dictatorship (UDD).
Jatuporn Promphan, a core leader of the UDD, has announced the red-shirts are
detenmined to bring down the the Democrat-led coalition government before the end of
this year.
Deputy Prime Minister for security affairs Suthep Thaugsuban said on Wednesday that
although the UDD and its supporters have the constitutional right to assembly and
expression, they must not step outside the law.
The government would consider again imposing Internal Security Act if the rally seemed
likely to spin out of control. The government would maintain law and order.
Prime Minister Abhisit Vejjajiva yesterday declined to respond to the red-shirts'
determination to bring down his government within the next few weeks. He said his
government would ensure that Thai people are able to celebrate the New Year festival.
• Social Front
Laos
• Political Front
•
Laos, Vietnam exchange lessons on local administration
Lao officials and their Vietnamese counterparts met on 12-13 November, in Vientiane
Capital, to exchange lessons and points of views on planning the improvement of rural
administration bodies in the Lao PDR.
At the workshop Vietnamese experts shared their lessons regarding the roles of central
and local government administrative agencies, as well as delegation of duties between
provincial and municipal administrative organisations.
Local administration reform is a priority of the Lao government and the government
has paid attention to this task over the past years, said Deputy Chief of the Public
Administration and Civil Service, Mr. Siphouk Vongphakdy.
The Party and Government have attached great importance to improving the local
administration by including the issue in the socio-economic development plan, he said.
The relevant government authorities are also making their efforts in strengthening district
administration offices and studying the possibility of establishing provincial assemblies
and municipalities.
The workshop was sponsored by the Japan International Cooperation Agency (JICA)Asean Regional Cooperation Meeting Scheme (JARCOM scheme), according to JICA
Laos Office s Senior Representative Mr Takei Koichi.
• Draft law on State investment discussed on third day of NA session
The third day of the 8th ordinary session of the National Assembly debated on the draft
law on state investment yesterday.
Minister of Planning and Investment Dr Sinlavong Khoudphaythoune proposed the main
content of the draft law on state investment which includes seven parts, nine charters and
90 articles.
81
There are some weak points that should need to be urgently modified in the
implementation of the law on state investment in Laos , said Dr Sinlavong.
The state budget was allocated with no clear-cut focus, thus failing to go to the main
plans and industrial projects, he said.Over the past years, the assignment of officials to
take charge of state investment projects was not strictly made in accordance with rules,
he said. Although most of contractors comply with laws, some do not. Rules and laws
relevant to this concern are still violated, he continued. The chief concern for this is
attributed to the imprecise provisions of laws, he said.
The draft proposed to the session is divided into seven parts including the general
provision, the implementation of state investment, ban, conflict solution, the management
and inspection, the incentives and disciplinary measures towards outstanding performers
and violators, and the final provision.While a member of the National Assembly of the
constituency 16 from the southern Sekong province Ms Chanhom Mahasay said that in
general, the content of the draft was adequate. However it needs further contemplation.
She said that the draft should be further improved to ensure the effectiveness and quality
of government investment projects.
• Economic Front
•
Vice President visits Xiengkhouang to see socio-economic development
Mr Bounnhang Vorachit, Vice-President of the republic, paid a working visit to
Xiengkhouang province on 17-18 November, where he was reported about the socioeconomic development plan of the Phou Moungmeuang village, Khoune district.
The report focused on the expansion of rice cultivation and pasture for cattle.
On his arrival, Mr Bounnhang was warmly welcomed by Mr Viengthanom
Phommachanh, Deputy Party Secretary of this northern province, members of the Party
Board of the province, members of the local authorities and local residents.
The Vice-President socialised with the core cadres and officials of the province and
congratulated them for their good work in leading the ethnic people to be involved in the
development of the country.
The Vice-President urged the local core cadres and officials to continue to work hard to
spread the correct ideology on politics and to raise the level of professionalism of the
officials, military personnel and policemen.
He added that the core officials should work with the ethnic people to tell them about the
laws, to be loyal to the country, to contribute to their families and to work hard to
develop the country.
The Vice-President added that they should undertake the task of mobilising the ethnic
people to be conscious of the good work of the Party and to strengthen the grass-roots
political basis and rural development so that the villages and districts are
Secure.
• At Social Front
82
China
Fareeha Sarwar
15th to 21st November 2009
Presentation Date: 25th November 2009
REPORT PATTERN:
Outline
National report
Political front
• Courts should hear more cases against govt: SPC (17th November)
• CPC hopes to set up more branches in non-public sector (17th November)
• Chinese president appoints new ambassadors (17th November)
• Top political advisor calls for unremitting reunification efforts (17th November)
• Chinese top legislator hold talks with ROK National Assembly speaker (18th
November)
• Chinese vice premier meets CME chairman emeritus (18th November)
• Political advisors urged to contribute to social, economic development (18th
November)
• Senior CPC official holds talks with Sudan party leader (18th November)
• Mainland to push normalization of economic relations with Taiwan: official (19th
November)
• Top Chinese political advisor starts two-day visit to Philippines (19th November)
• Senior CPC official hails China-Sudan relations (19th November)
• Net's role in fighting corruption praised (20th November)
• Senior CPC official pledges closer ties with South Africa (20th November)
• Senior CPC official meets Seychelles leaders (21st November)
• Top Chinese political advisor meets Philippine senior legislator (21st November)
• Senior Chinese political advisor leaves for visits to Germany, Serbia, Slovak (21st
November)
Foreign relations
• Chinese, U.S. foreign ministers meet in Singapore
• Obama's exchange with Chinese youth to be broadcast live online (15th
November)
• Can Obama Get Around China's 'Great Firewall'? (15th November)
• China's role alters dynamics for Obama's visit (15th November)
• China-U.S. trade war unlikely (15th November)
83
•
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•
•
•
•
•
•
Chinese vice premier leaves for World Summit on Food Security, Syria visit (15th
november)
In first visit to china, Obama walks a tight rope (15th November)
Obama treads cautiously on his first visit to China (15th November)
Obama visit highlights new US-China relations (15th November) (NewYork
Times)
Navy ship returns after 20-day visit (16th November)
Obama kicks off first visit to China (16th November)
Obama holds dialogue with Chinese Youths (16th November)
Obama welcomes China as a "strong, prosperous and successful" nation (16th
November)
Opinion split on Barack's journey (16th November)
Face-to-face meeting bridges all (17th November)
There's room for both of us: Obama (17th November)
Barack copies town-hall style to Shanghai (17th November)
Taking new tact, Obama lends ears to young Chinese (17th November)
China, US pledge to move forward together (18th November)
Wen hopes for further Sino-US cooperation (18th November)
Wen: China disagrees to so-called G2, calling for effort to fight protectionism
(18th November)
Chinese vice premier arrives in Damascus for visit (19th November)
New development in China-U.S. relations bears strategic significance (19th
November)
Barack Obama's exclusive interview with the Chinese media (19th November)
China calls for integrated solution to Somali piracy (19th November)
China wants 'improved' Indo-Pak ties, but denies interference (19th November)
China, Sudan agree on agriculture cooperation (19th November)
China, Vietnam make border progress (19th November)
Chinese FM visits Japan (19th November)
Common interests push bilateral relations high (19th November)
China welcomes U.S. envoy's upcoming visit to Pyongyang (19th November)
•
China seriously concerned over Israel's housing plan in East Jerusalem (19th
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
November)
Ambassador: U.S.-China relations more focused on global issues (20th November)
President Hu: China hopes to advance relations with ROK (20th November)
China, Japan vow to further improve bilateral ties (20th November)
Chinese officials rip Obama interview from newspaper (20th November)
India bristles at closer Sino-US ties (20th November)
Chinese vice premier meets Syrian PM on bilateral cooperation (20th November)
China urges Japan to be responsible in handling forced laborer issue (21st
November)
Chinese premier congratulates EU top leaders elected (21st November)
Chinese Remedy for South Asia (21st November)
84
•
•
•
New EU chief good for ties with China (21st November)
China-Africa co-op mutual beneficial: expert (21st November)
China urged to increase UN role (21st November)
Economic front
• IMF Chief Says Stronger Chinese Yuan Needed (15th November)
• Hu expounds China's views on sustainable development (15th November)
• A reflection on China enthusiasm at APEC meetings (15th November)
• APEC leaders issue Singapore declaration (15th November)
• APEC leaders chart roadmap for post-crisis landscape (15th November)
• Asia-Pacific region to become world's leading aviation market in 20 years,
Boeing (15th November)
• Chinese banks should defer some pay – regulator (15th November)
• Chinese president calls on APEC to reform itself to raise efficiency of co-op (15th
November)
• APEC leaders reject 'growth as usual' (16th November)
• China’s Role as Lender Alters Dynamics for Obama’s Visit (New York Times)
• Chinese scholar suggests Taiwan finance sector enter China under WTO
• Chinese, Algerian enterprises seek to expand business cooperation (16th
November)
• Economic zone expands mainland and Taiwan links (16th November)
• Low interest rate threatens recovery (16th November)
• Trip hailed by US business community (16th November)
• Taiwan and China set ECFA agenda on APEC sidelines (16th November)
• Venture to boost plane systems bid (16th November)
• Positive FDI data drive Chinese shares 2.7% higher (16th November)
• Nation calls for ease of hi-tech export limits (17th November)
• CIMC set to purchase YRSL stake (17th November)
• Huawei outshines rivals in telecom equipment mart (17th November)
• Mainland equities edge up led by renewable energy shares (17th November)
• Wuhan Iron, CVG ink iron ore deal (17th November)
• Chinese shares rise to 3-month high (19th November)
• Expert warns of asset bubbles (19th November)
• Damaged pipeline halts MMG zinc shipment from Oz mine (19th November)
• Gome expects better full-year profit (19th November)
• Optimism high as CCTV ad slots are snapped up (19th November)
• Power stocks boost mainland equities (19th November)
• Phone giant bullish on 3G adoption (19th November)
• Relaxed dollar curbs, rally prompt new share accounts (19th November)
• Slight rise in US debt not a sign of new strategy: Experts (19th November)
• Official Chinese paper spurns calls for yuan shift (19th november)
• China raises price of electricity for non-residential use (19th November)
• Chinese shares dip after electricity price increase (20th November)
• China reaffirms efforts to revive world economy (20th November)
85
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•
•
•
•
China's economy to expand 9.4% in 2010, report forecasts (20th November)
China continues anti-dumping measures on some imported TDI (20th November)
Philippine president praises Chinese entrepreneurs, role in world recovery (20th
November)
China's oil producer signs agreements with Sudan on refinery expansion, asset
swap (20th November)
China telecom sector reports nearly 700 bln yuan in main business revenue by
Oct. (20th November)
China to float 15 bln yuan T-bonds next week (20th November)
Tax-take from automobile industry surges in China (20th November)
China Enterprises Index falls 1.05% (20th November)
ChiNext stock index down (20th November)
Changes in laws will help protect wages: Trade unions (20th November)
China rejects call for WTO panel on export limits (20th November)
Malaysia oks license to China's largest commercial bank (21st November)
China needs national plan to boost consumption: expert (21st November)
Profits of China's central SOEs more than doubled in Oct (21st November)
China is dynamo of world economy: ECLAC (21st November)
China Unicom bullish on iPhone sales (21st November)
Listed banks may need 300b yuan in capital, says BNP Paribas (21st November)
•
•
•
•
•
•
•
•
•
•
•
•
•
Social front
• Google to talk with Chinese authors over copyrights (15th November)
• Experts call for better media literacy education on Chinese youth (15th November)
• Kids picked for dream prize (16th November)
• Passenger numbers soar as Xiamen boosts crossings (16th November)
• Touch of magic (16th November)
• Terracotta warriors on display in US (18th November)
• Universities in Taiwan open doors to mainland (19th November)
• Babies, toddlers may get vaccine shots after trials (19th November)
• GSK may shift some Relenza manufacturing to mainland (19th November)
• Mainland's last D-Day veteran dies at 91 (19th November)
• Nation vows to topple illegal timber trade (19th November)
• Xinhua to live broadcast Global News Day for Children (20th November)
• Google pledges only booklist in copyright row (21st November)
• Hollywood showcases more Chinese elements as an emerging China becomes
more acceptable: analysts (21st November)
Ethnic issues
Environmental front
• APEC leaders back delaying climate deal (16th November)
• China awaits US climate pledge (17th November)
• Shrinking major lake a victim of drought (17th November)
86
•
•
•
•
•
Suntech gets grant for solar projects (17th November)
Worries rise about level of dam water (17th November)
Freeze is causing power outages (19th November)
China expects positive outcome in Copenhagen (20th November)
Chinese vice premier urges to upgrade polar exploration (20th November)
Regional report
North
Politics
• Obama in Forbidden City (17th November)
Social front
• Air force dazzles crowd in founding show after delays (16th November)
• Prominent city lakes fail water safety test (16th November)
• China, EU hold human rights dialogue (21st November)
Economic front
• Beijing office market rebounds (16th November)
• Coal-to-electricity plan to expand (16th November)
• Junk bond sales may get nod (19th November)
• Hebei Sanyuan, CAG agree on split of Sanlu assets (20th November)
• Property developer acquires land in Beijing at 5.05 bln yuan (21st November)
Northwest
Politics
• Chinese vice president advocates revolutionary Yan'an Spirit (17th November)
Social front
Economic front
• Chinese VP calls for Euro-Asia co-op to tackle financial crisis (16th November)
• China's top legislator urges northwestern province to blaze new path of
development
• West China sees GDP grow 12.5% in first nine months (19th November)
Northeast
Politics
• Jilin Special: Plan for further opening of northeast approved (20th November)
Social front
• Harbin goes Hollywood (20th November)
Economic front
87
•
Tumen River Delta zone (17th November)
Southwest
Politics
Social front
• Pigs get ID chips in central China (20th November)
• Former US president Jimmy Carter volunteers in SW China (21st November)
Economic front
• Tourism promising (19th November)
South central
Politics
• 15th Teochew International Convention opens in Guangzhou (19th November)
Social front
Economic front
• BYD to spend 1.5b yuan on vehicle testing center (17th November)
• Guangdong injects hefty fund for ambitious industrial program (19th November)
• Guangdong Special: 'Double-transfer' initiative set to boost rural economy (19th
November)
• Guangdong's economy to grow 9% in 2009, governor says (20th November)
East
Politics
• Obama meets with secretary of CPC Shanghai Municipal Committee (16th
November)
• Obama brings fortune to some in city (16th November)
• 'White house director' on trial for corruption (20th November)
Social front
• 'Egret Island' retains green roots (16th November)
• The 12th West Lake Art Expo kicks off in E China (20th November)
Economic front
• Clinton working her magic to woo backers to expo dream (17th November)
• Xiamen set to be core of new economic zone (17th November)
• Action hots up on Bund realty front (19th November)
• Pudong gets C919 final assembly line (19th November)
• Shanghai copper futures sizzle (19th November)
88
•
Qingdao named top resort (20th November)
HONGKONG AND MACAU
Politics
• Chinese central government supports Macao's foreign exchanges: spokesman
(19th November)
Social front
• Emergency exercise conducted in HK airport (21st November)
• Environment biodiesel law updated in Hong Kong (21st November)
Economic front
• Sands to reopen Macao resort (17th November)
• Chardan warning hits BYD (19th November)
• China's Longfor up 1.8 pct ahead of HK debut (18th November)
• HSBC empowers Indonesian SMEs in tapping global trade market (19th
November)
• Macao's median monthly employment earnings remains stable in Q3 (19th
November)
• Hong Kong's October underlying CPI falls 0.3% (20th November)
• Hong Kong stocks close 0.87% lower (20th November)
89
National report
Political front
• Courts should hear more cases against govt: SPC (17th November)
Courts should put more effort into accepting and hearing lawsuits against the
government, ensuring people's rights to sue, said the Supreme People's Court (SPC).
The SPC added that courts should not find any excuse to limit or illegally exclude
lawsuits or add conditions for accepting suits.
"No court can refuse to hear a lawsuit it should have accepted and nobody should set
other limits except those in law," the SPC said in a statement.
Otherwise acceptable lawsuits should not be refused with excuses such as keeping the
local peace, fighting the economic crisis or saying the case would have lost anyway.
"One reason a lot of courts refuse to hear such cases is they depend on local governments
for money and appointment," Jiang Ming'an, a law professor from Peking University, told
China Daily. "Local governments therefore interfere a lot in the local judicial system,
especially in administrative lawsuits where they are the ones getting sued," Jiang said.
According to administrative law, eight kinds of lawsuits can be accepted, and four
cannot, including cases about national defense and diplomacy, and decisions about
officials' promotions, punishments, appointments and removals.
According to the SPC, although a lot of administrative lawsuits have been heard since the
law took effect in 1990, public opinion shows it is still difficult to sue officials.
Jiang suggested that to improve government credibility and further ensure people's rights,
acceptance of such cases should be expanded and the system that makes courts
economically dependent on local governments should be reformed.
Since 1990, courts nationwide heard 1.4 million administrative lawsuits, but government
departments or officials lost very few of those.
Fore example, in Dongguan of Guangdong province, courts at all levels in the city
handled 709 cases filed by local residents against government departments from the
beginning of 2007 to the end of June. But government departments lost only 22 of those
cases.
• CPC hopes to set up more branches in non-public sector (17th November)
The Communist Party of China (CPC) has seen the current campaign of promoting the
Scientific Outlook on Development as an opportunity to establish more branches in the
non-public
sector.
Non-public sector is of great importance to the building of Party organizations at the
grassroots level, said a circular jointly issued by the Organization Department of the CPC
Central
Committee
and
the
leading
group
for
the
campaign.
A Party branch should be set up in a non-public institution when it has three or more CPC
members. Leaders of the new Party branches could be elected among the Party members
or nominated by upper level Party organizations, the circular said.
90
The CPC currently has about 76 million members.
• Chinese president appoints new ambassadors (17th November)
Chinese President Hu Jintao has appointed five new ambassadors in line with decisions
adopted by the Standing Committee of the National People's Congress, China's top
legislature.
Yang Youming was appointed ambassador to the Republic of Trinidad and Tobago,
replacing
Huang
Xing.
Li Guobang was appointed ambassador to the Republic of Cyprus, replacing Zhao Yali.
Yang Weiguo was appointed ambassador to the Kingdom of Bahrain, replacing Li
Zhiguo.
Xia Huang was appointed ambassador to the Republic of Niger, replacing Chen Gonglai.
Gong Yuanxing was appointed ambassador to the Republic of Senegal, replacing Lu
Shaye.
• Top political advisor calls for unremitting reunification efforts (17th November)
China's top political advisor Jia Qinglin on Monday urged a visiting Hong Kong
delegation to make more contribution to the reunification of China.
Jia, chairman of the National Committee of the Chinese People's Political Consultative
Conference (CPPCC), made the remarks when meeting a delegation of the Hong Kong
Association for the Promotion of Peaceful Reunification of China.
Jia, also chairman of the China Council for the Promotion of Peaceful National
Reunification (CCPPNR), urged the association to "hold high the banner of patriotism,
unite as many Hong Kong compatriots as possible, and resolutely oppose any form of
separatist
activities
for
'Taiwan
independence'."
It is a common will of the whole Chinese people to promote the peaceful development of
the cross-Strait relations and finally achieve a complete unification of the nation, he said.
He also expressed his hope that the association could tap its broad social influence in
Hong Kong and close connections with all social sectors of Taiwan to promote the
peaceful development of the cross-Strait relations and the reunification of China.
In the meeting, Jia also praised the association for providing an important platform for
Chinese compatriots in Hong Kong to contribute to the peaceful reunification of China.
The Hong Kong association was established on July 30 this year.
91
Chinese top legislator hold talks with ROK National Assembly speaker (18th
november)
Wu Bangguo, chairman of the Standing Committee of the National People's Congress
(NPC), China's top legislature, held talks here Wednesday afternoon with Kim Hyong-o,
speaker of the National Assembly of the Republic of Korea (ROK).
Wu spoke highly of Sino-ROK relations and the positive role that the two legislatures
have played in enhancing bilateral relations.
China attaches importance to its relationship with the ROK and both countries are of
great influence in the region, he said, noting that development of the bilateral relations
accord with the fundamental interests of the two peoples and is conducive to the regional
peace, stability and development.
He suggested the two countries to enhance strategic mutual trust and economic and
trade cooperation, and expand cultural and personnel exchanges.
He also said the two legislatures should make closer contacts and develop and improve
their regular exchange mechanism.
Kim highly valued the measures that China taken to counter the global financial crisis,
and its role in international affairs.
He said the ROK attaches great importance to the relations with China, and the ROK
legislature will further its relations with China's NPC.
Kim is here for the visit Nov. 18-22 at the invitation of Wu.
•
• Chinese vice premier meets CME chairman emeritus (18th November)
Chinese Vice Premier Wang Qishan met with Chairman Emeritus of the Chicago
Mercantile
Exchange
(CME)
Leo
Melamed
on
Tuesday.
Wang said China was a large developing country with a population of 1.3 billion and in a
dramatic process of industrialization and urbanization. Therefore, while having a huge
potential for development, it also faced many conflicts and challenges.
"We will unswervingly adhere to the policy of reform and opening up and continue to
explore the development path of capital market with Chinese characteristics," he said.
"We
should
have
confidence,
and
patience
as
well,
in
that."
In the meeting, Melamed highly appreciated the achievements China had made in
fighting against the international financial crisis. It was the second meeting between the
two since April this year.
Political advisors urged to contribute to social, economic development (18th
November)
Jia Qinglin, chairman of the National Committee of the Chinese People's Political
Consultative Conference (CPPCC), on Tuesday urged political advisors to contribute
their
wisdom
to
China's
social
and
economic
development.
•
Political advisors should watch closely the domestic and international economic
situations and problems that China had in the process of development and put forward
wise
and
pragmatic
solutions,
Jia
said.
92
He urged political advisors at all levels to carry out in-depth study on the key issues
including macro-economic policy, environmental protection, public resource distribution
and
reform
of
the
income
system.
Jia made the remarks at a chairman's meeting of the CPPCC National Committee.
• Senior CPC official holds talks with Sudan party leader (18th November)
Senior official of the Communist Party of China (CPC) Zhou Yongkang said that China
is willing to further promote ties with Sudan to bring more tangible benefits to the people
of
the
two
countries.
Zhou, a member of the Standing Committee of the CPC Central Committee Political
Bureau, made the remarks at talks with Nafie Ali Nafie, deputy president of Sudan's
ruling
National
Congress
Party
(NCP),
late
on
Monday.
Zhou arrived in Khartoum on Monday on a three-day official goodwill visit to Sudan.
Zhou hailed bilateral relations since the two countries forged diplomatic ties 50 years
ago, saying the two countries have stood test of the changeable international situations.
"In recent years, the two countries have maintained high-level visits, expanded
cooperation in such areas as oil, transportation, agriculture and culture, which have
brought
tangible
benefits
to
the
two
peoples,"
said
Zhou.
China-Sudan relations can be seen as an example for South-South and China-Africa
cooperation,
said
Zhou.
Zhou said China attaches great importance to relations with Sudan, and will make joint
efforts with Sudan to further deepen bilateral cooperation on the occasion of the 50th
anniversary
of
the
establishment
of
China-Sudan
diplomatic
ties.
Zhou suggested the two countries to enhance political consultations and coordination,
expand pragmatic cooperation in various fields based on mutual benefit and reciprocity,
boost cultural exchanges and consummate the cooperative mechanism of law
enforcement
and
security.
Zhou spoke highly of party relations between the two countries and the leading role the
NCP has played in achieving peace, solidarity and development in Sudan.
"The ruling parties of the two countries have formed all-round, wide-ranging and
multiform pattern of interaction, which is helpful to the development of bilateral ties,"
said
Zhou.
Zhou urged the two parties to set up exchange mechanism to discuss experience on
governance and international and regional issues, and to further exchanges and
93
cooperation
to
serve
China-Sudan
friendship.
Nafie, who is also Sudanese presidential assistant, appreciated China's consistent
assistance to Sudan in the past years, hoping the two countries could continue
cooperation in areas like agriculture and energy as Sudan will provide favorable
investment
environment
for
the
Chinese
enterprises.
Nafie pledged to take every measure to guarantee the safety of the Chinese nationals
working
in
Sudan.
Before the talks, Zhou met with the Chinese peacekeepers in Sudan, encouraging them to
make new contribution to peace, stability and development in Sudan as well as UN
peacekeeping mission.
• CPC wants to set up more branches in new social groups (18th November)
The Communist Party of China (CPC)calls for establishment of more Party branches in
new
social
groups.
This was recently disclosed in a circular jointly issued by the Organization Department of
the CPC Central Committee and the office of the leading group for the campaign to study
the
Scientific
Outlook
on
Development.
A Party branch should be set up in a new social group when it has three or more CPC
members. Leaders of the new Party branches could be elected among the Party members,
the
circular
said.
The news social groups refer to such organizations as foundations and non-profitable
units under private businesses.
Mainland to push normalization of economic relations with Taiwan: official (19th
November)
A Chinese mainland official on Taiwan affairs said here Thursday that the mainland
would work actively for "normalization" of economic relations with Taiwan.
Wang Yi, director of the Taiwan Work Office of the Communist Party of China (CPC)
Central Committee, said at a conference on cross-Strait cooperation in trade and science
held in the northwestern Shaanxi Province that the priority of economic relations between
the two sides at present and in the next stage is to negotiate and sign the cross-Strait
Economic Cooperation Framework Agreement (ECFA).
Wang said experts from the mainland and Taiwan have basically completed joint
research on the ECFA.
"The results show that signing the agreement would produce positive impact on the
economic development of both sides, especially that of Taiwan," said Wang.
He said results of the joint research would be made public "at a selected time", so as to
further pave the way for negotiations "under the framework of the mainland-based
•
94
Association for Relations Across the Taiwan Straits (ARATS) and the Taiwan-based
Straits Exchange Foundation (SEF)."
The ARATS and the SEF are authorized by the two sides to handle cross-Strait issues.
Wang also vowed to push for more cooperation in science, technology and new
industries. "We would speed up two-way flow and reasonable distribution of productive
factors across the Taiwan Strait, as the two sides have complementary advantages."
He also expressed willingness to continue to seek solutions to problems in trade,
investment and finance under the framework of the ARATS and the SEF, which are to
hold a fourth round of talks in Taiwan in December.
• Top Chinese political advisor starts two-day visit to Philippines (19th November)
Jia Qinglin, China's top political advisor, arrived in Manila on Thursday to begin a twoday official visit to the Southeast Asian country.
Jia, chairman of the Chinese People's Political Consultative Conference (CPPCC)
National Committee, delivered a written speech upon his arrival at the airport of the
Philippine capital.
In the speech, Jia hailed the traditional friendship between China and the Philippines,
highlighting the enhanced political mutual trust, fruitful cooperation in various fields and
close contact between the two peoples.
"The sound development of bilateral ties brought about tangible interests for the two
peoples and is conducive to regional peace, stability and development," he said.
Jia was to exchange views with Philippine leaders on issues of common concern
during his stay.
"I believe that this visit will further improve our understanding, promote mutual trust
and push forward the China-Philippines strategic and cooperative relations," Jia said.
Jia presented a wreath at the Rizal Monument Thursday afternoon to show respect to
Jose Rizal, Philippine national hero who died in the country's anti-colonist movement.
Jia was in the Philippines at the invitation of Juan Ponce Enrile, president of the
country's Senate.
Jia will attend the opening session of the 10th World Chinese Entrepreneurs
Convention held in Manila on Friday.
The Philippines is the first leg of Jia's four-nation trip, which will also take him to
Peru, Ecuador and Brazil.
• Senior CPC official hails China-Sudan relations (19th November)
A senior official of the Communist Party of China (CPC) has hailed China's relationship
with Sudan during a ceremony marking the 50th anniversary of the establishment of
95
China-Sudan
diplomatic
ties.
Zhou Yongkang, a member of the Standing Committee of the CPC Central Committee
Political Bureau, said Tuesday that since the establishment of diplomatic ties, China and
Sudan
have
enjoyed
a
positive
relationship.
Zhou said that bilateral trade volume reached more than 8 billion U.S. dollars in 2008. He
said Sudan has become China's third largest trade partner in Africa. In addition, Zhou
said,
China
is
Sudan's
largest
trade
partner.
Oil cooperation between the two countries, Zhou said, has promoted cooperation in other
sectors, including irrigation works, power, telecommunication and infrastructure
construction.
The cooperation has brought concrete benefits to both peoples and has become a model
of the relations between China and Africa, the Chinese official said.
Zhou said 2009, which also marks the 10th anniversary of an oil cooperation project
between the two countries, is an important year in the history of the Chinese-Sudanese
friendship.
China, Zhou said, will strengthen its cooperation with Sudan under the framework of the
Forum on China-Africa Cooperation and join hands with the African nation to bring
China-Africa
cooperation
to
a
new
height.
Zhou said he was pleased to see that Sudan has become one of the fast growing
economies in Africa and has improved its people's standard of living while advancing
national
reconciliation.
In order to enhance the bilateral relationship, Zhou said, China and Sudan should
promote political mutual trust, deepen their economic and trade cooperation and expand
their
exchanges.
China, Zhou said, can't develop in isolation from the rest of the world. He said China is
willing to work with the Islamic world and African countries, such as Sudan, to advance
the building of a world featuring lasting peace and common prosperity.
Sudanese Vice President Ali Osman Mohamed Taha praised the Sudan-China friendship
and
the
cooperation
between
the
two
countries.
He also expressed gratitude for China's support for the development of African countries.
He said he looked forward to deepened cooperation with China in a variety of fields.
Zhou also met with Riek Machar, deputy chairman of the Sudan People's Liberation
Movement (SPLM) and vice president of the Autonomous Government of Southern
Sudan. The two exchanged views on such issues as the strengthening of cooperation
96
between
the
two
parties.
Zhou stressed China's support for the implementation of a comprehensive north-south
peace deal in Sudan, and pledged China's continued efforts in helping achieve peace and
stability in the country.
• Net's role in fighting corruption praised (20th November)
China's anti-corruption chief He Guoqiang yesterday urged authorities to utilize the
public's online comments and postings in the country's ongoing attempt to fight
corruption.
He, secretary of the Central Commission for Discipline Inspection (CCDI) of the
Communist Party of China (CPC), said channels should be expanded to solicit public
opinions and efforts be made to give full play to the positive role that the Internet has had
in the fight against corruption.
"He's remarks showed the unprecedented resolute determination of the CPC to fight
corruption, and it will lead to powerful practice," said Ye Duchu, a senior professor with
the Central Party School.
"The top officials of the CPC have realized that online opinion is a weapon to curb graft,
but it is a tough decision for them to make as the Party had been very cautious about
handling information against a Party member," Ye said.
China now has about 350 million Internet users, people who go to the Internet at least
once in six months. More than half - some 182 million people - have their own blogs.
Nearly all the major websites have chatrooms for netizens to discuss social trends and
phenomena.
The netizens' latest success in the anti-corruption fight came in September, in Nanjing,
capital of East China's Jiangsu province.
Zhou Jiugeng, the former director of the real estate management bureau of Nanjing's
Jiangning district, was sentenced to 11 years in jail, with 1.2 million yuan ($175,000) of
personal property confiscated, after netizens last year posted photos online of him
smoking expensive cigarettes, sporting a Vacheron Constantin watch worth about
100,000 yuan and driving a Cadillac.
Early this month, an entrepreneur named Shangguan Hongxiang from Fuxin, a city in
Northeast China's Liaoning province, posted several messages online, accusing Yu Yang,
a local senior judiciary official, of taking drugs and having group sex.
The accusation caused heated discussion. Hundreds of netizens called for an
investigation.
On Oct 30, the CCDI and the Ministry of Supervision launched a website
www.12388.gov.cn to receive online comments. The website was so popular during its
first day of operation that it crashed several times due to heavy usage.
"Online supervision plays a sharp role in exposing corrupt officials. Meanwhile, it warns
others and is vital in setting a proper tone for public opinion," a netizen named "justice"
said on sina.com.
Although the CPC is showing drastic efforts to curb corruption, there is still concern from
the public.
97
An online survey carried by the Beijing News early this month reported that 57 percent of
respondents said they would report the misdeeds or clues of corruption online. But nearly
half said they would only make anonymous postings as they are frightened that the
people they are indicting online would find out who they are and enact revenge.
"It is natural that people have this kind of concern, especially when they are reporting the
ones who have a lot of power, but the CPC will definitely address this issue, to better
protect informers," Ye said.
"Anyway, adopting online reporting can largely curb corruption, and experience will tell
us how to improve on this path," he said.
• Senior CPC official pledges closer ties with South Africa (20th November)
Senior official of the Communist Party of China (CPC) Zhou Yongkang has said that
China is willing to enhance cooperation with South Africa in various fields in a bid to lift
bilateral ties to a new height, according to sources with the International Department of
CPC
Central
Committee
on
Thursday.
Bureau, made the remarks while meeting with South African President Jacob Zuma on
Wednesday
in
Pretoria.
Zhou arrived in Johannesburg on Wednesday on an official goodwill visit to South Africa
after concluding his three-day visit to Sudan. Zhou visits South Africa as guest of South
Africa's
ruling
party
African
National
Congress
(ANC).
"Since the two countries established diplomatic relationship 11 years ago, China and
South Africa have enjoyed increasing political mutual trust, and made fruitful
achievements in such areas as trade, culture, education and tourism," Zhou told Zuma.
"China is now the largest trading partner of South Africa, and the two countries have
become
important
strategic
partners,"
Zhou
said.
Zhou said China attaches great importance to relations with Africa, adding that China is
willing to discuss new ways of cooperation with the African nations by implementing the
eight new measures just put forward by the Chinese government.
Chinese Premier Wen Jiabao early November announced eight new measures to enhance
cooperation with Africa when addressing the opening of the ministerial meeting of the
Forum
on
China-Africa
Cooperation
(FOCAC)
in
Egypt.
The eight measures proposed by Chinese President Hu Jintao in Beijing summit of the
FOCAC
in
2006
have
been
basically
implemented,
said
Zhou.
Zhou also hailed the party-to-party relations between the two countries, saying the CPC is
willing to enhance exchanges with the ANC to serve the country-to-country ties.
Under the leadership of the CPC, China has made enormous progress and accumulated
98
abundant experience in the past 60 years, said Zuma, also the ANC president.
China, as representative of the developing and emerging countries, has played
increasingly important role on international affairs, on which South Africa would like to
step
up
coordination
with
China,
said
Zuma.
Zuma expressed his admiration for China's stable and fast development despite the global
financial crisis, attributing China's success to its development strategies outlined based on
its
own
situations.
On Wednesday, the ANC General Secretary Gwede Mantashe hosted a welcome banquet
for
Zhou
and
his
CPC
delegation.
Zhou wrapped up his two-day visit to South Africa on Thursday and headed back to
Beijing.
• Senior CPC official meets Seychelles leaders (21st November)
Zhou Yongkang, a senior official of the Communist Party of China (CPC), has met
leaders of the Seychelles on bilateral relations.
Bureau, was welcomed Thursday evening at the airport by the general secretary of the
People's Party of the Seychelles, Danny Faure, who is also finance minister.
During their meeting, Zhou said the CPC and the People's Party have maintained close
and friendly cooperation since the two parties forged ties in 1979 and played positive
roles in promoting the relations between the two countries and the friendship between the
two peoples.
The CPC is willing to enhance exchanges and cooperation with the People's Party of the
Seychelles to further strengthen the political basis of the bilateral relationship, said the
senior CPC official.
The CPC and the Chinese government are also willing to boost cooperation with
African countries, including the Seychelles, in meeting the challenges of the international
financial crisis, said Zhou.
Faure said China has always treated the Seychelles, a small country, on an equal
footing, adding that the two nations, the two peoples and the ruling parties of both
countries have maintained friendly relations, which could be regarded as a model for
relations between big and small countries.
The People's Party hopes to promote exchanges with the CPC on the experience of
governance, said Faure.
99
When meeting with Vice President Joseph Belmont on Friday, Zhou said the relations
between China and the Seychelles have witnessed a sustained healthy and steady
development since the two countries established diplomatic ties 33 years ago.
With the smooth implementation of China's eight measures regarding cooperation with
Africa, proposed by Chinese President Hu Jintao in 2006, China and the Seychelles have
seen increased exchanges of high-level visits, deepened traditional friendship and
expanded cooperation, Zhou said.
The Chinese government announced eight new measures to enhance cooperation with
Africa earlier this month, and China is willing to jointly implement these measures with
the Seychelles so as to bring more benefits to the Africans, including the Seychelles
people, he said.
The senior CPC official also expressed appreciation for the support of the People's
Party and the Seychelles government on the Taiwan and human rights issues.
Belmont said the Seychelles people have benefited extensively from China-Africa
cooperation, adding that the Seychelles welcomed China's new measures on its
cooperation with Africa and would implement them in a timely manner.
While expressing the hope for enhanced cooperation in tourism, the Seychelles vice
president also expected more investment from Chinese companies in the country's
tourism sector.
Zhou arrived here Thursday for a technical stopover after concluding visits to Sudan
and South Africa.
• Top Chinese political advisor meets Philippine senior legislator (21st November)
China's top political advisor, Jia Qinglin, has met with Amelita Villarosa, acting speaker
of the Philippine House of Representatives, a Chinese delegation official said Saturday.
Jia, chairman of the National Committee of the Chinese People's Political Consultative
Conference (CPPCC), hailed the traditional friendship and growing bilateral ties between
China and the Philippines during the meeting, which was held hours before he wrapped
up his official goodwill visit to the Southeast Asian country Friday night.
"The year 2010 marks the 35th anniversary of the diplomatic ties between China and
the Philippines, and we will work together with the Philippine side to further the bilateral
ties, of which we are full of confidence," the CPPCC delegation official, who refused to
be named, quoted Jia as saying during the meeting.
Jia spoke highly of the bilateral trade and economic cooperation between China and
the Philippines, which "brought tangible benefits to the two peoples."
100
Some Chinese companies have taken an active part in projects aimed at improving the
Filipinos' well-being, which were successful both economically and socially, he said.
The Chinese government will continue to encourage investment in the Philippines,
strengthen cooperation in such fields as infrastructure construction, agriculture and
tourism, and explore new ways to boost economic and trade ties, Jia said.
The Chinese side will also promote exchanges and cooperation with the Philippine
parliament, Jia said, expressing appreciation to the Philippine parliament's long-time
adherence to the one-China policy on the Taiwan issue.
Villarosa, for her part, thanked China for the aid supplied to the Philippines following
devastating typhoons that hit the Southeast Asian nation, saying the relationship with
China is of special significance in the Philippines' foreign relations.
She said President Gloria Macapagal Arroyo had paid nine visits to China over recent
years and traveled to southwest China's earthquake-hit province of Sichuan, which was
an evidence of the special friendly relations between the two nations.
The Philippine House of Representatives will strive to boost bilateral exchanges and
cooperation, especially in such fields as disaster prevention and relief, she said.
The Philippines is the first leg of Jia's four-nation tour, which will also take him to
Peru, Ecuador and Brazil.
Senior Chinese political advisor leaves for visits to Germany, Serbia, Slovak (21st
November)
Wang Zhizhen, vice-chairwoman of the National Committee of the Chinese People's
Political Consultative Conference (CPPCC) left here on Saturday for good-will visits to
Germany, Serbia and Slovak.
•
Foreign relations
• Chinese, U.S. foreign ministers meet in Singapore
Chinese Foreign Minister Yang Jiechi met here on Saturday with his U.S. counterpart
Hillary Clinton, and the two exchanged views on bilateral ties, President Barack Obama's
planned visit to China and the regional and international issues of common concern.
During the meeting, Yang said that Sino-U.S. ties have enjoyed a good start, and both
countries have made it clear that joint efforts should be made to build positive and allround cooperative ties in the 21 century.
The two sides have established a strategic and economic dialogue system with the first
such dialogue having been held successfully, laying a sound foundation for a long-term,
healthy and stable development of Sino-U.S. relations, Yang said, adding that the
relations between the two countries will face new opportunities for further development
in the coming years, and both countries should continue to implement the decisions taken
by the two countries and consolidate the foundation for the development of such ties.
101
Describing Obama's forthcoming first visit to China as being of great significance for
further growth of Sino-U.S. ties in the new era, Yang said that Chinese President Hu
Jintao is expected to exchange views with his U.S. counterpart Obama on key issues of
common concern, and discuss the ways of how to further develop China-U.S. ties.
The Chinese government attaches great importance to Sino-U.S ties, and is willing to
share the efforts with the United States to enhance dialogues, exchanges and cooperation,
taking President Obama's visit as a new starting point, Yang said, adding that the two
countries should work together to push forward the all-round development of bilateral
ties in the 21st century.
For her part, U.S Secretary of State Hillary said that President Obama's visit to China
marks a milestone in the history of U.S.-China ties, and President Obama is expected to
exchange views with his Chinese counterpart Hu Jintao on U.S.-China ties, regional and
global issues of common concern.
The United States is willing to work together with China to expand cooperation in all
fields and further deepen U.S.-China relations, she added.
The two sides also discussed the issues such as the climate change, G20 cooperation
and the nuclear problems in the Korean Peninsula and Iran.
Yang invited Hillary Clinton to visit China next year, and the latter accepted the
invitation.
The meetings between China and U.S. foreign ministers took place on the sidelines of
the on-going APEC Leaders' Week, which kicked off on Nov. 8.
Obama's exchange with Chinese youth to be broadcast live online (15th
November)
U.S. President Barack Obama will start his four-day China visit Sunday in Shanghai, and
the highlight of his visit in the eastern city will be broadcast live by Xinhuanet, the online
news service of the Xinhua News Agency.
This is Obama's first visit to China since he took office in the White House more than a
year ago.
Obama is scheduled to meet with Chinese youth on Monday in Shanghai, during which
he will pick up a number of questions out of more than 3,200 put forward by China's
Internet users over the past two days.
The whole event will be broadcast live online, according to the Xinhuanet.
Obama will arrive in Beijing on Monday afternoon.
•
• Can Obama Get Around China's 'Great Firewall'? (15th November)
The official U.S. buzzword for President Obama's visit to China this week is "pragmatic
cooperation," but behind the scenes, U.S. diplomats have been aiming for something a
little closer to subversion — at least when it comes to getting around China's "great
firewall" of official censorship and information control.
American officials were holding out hope that the Chinese would allow for live
nationwide broadcast of the President's town hall with Chinese youth on Monday in
Shanghai. But even as Obama got ready to board his flight to Shanghai on Sunday, U.S.
diplomats were still negotiating the terms. "What we've said is simply that the President
would like the opportunity to speak to a broad audience of the Chinese people," said Ben
102
Rhodes, a deputy national security adviser. (Read "Obama in Southeast Asia:
Mending Fences in a Key Region")
At the same time, White House officials have been preparing alternate means of
broadcasting the town hall online. The event, which takes place Monday at 12:45 p.m.
local time, will be shown live over Whitehouse.gov, and Obama plans to take a number
of questions from an online Chinese audience.
The State Department has also been reaching out to Chinese bloggers in anticipation of
Monday's event. On Nov. 12, the U.S. embassy in Beijing invited a dozen prominent
bloggers to a briefing on American policy toward China, both in person and via live Web
feeds to the U.S. consulates in Shanghai and Guangzhou.
The group included well-known free-speech advocates, as well as Rao Jin, the founder of
the nationalist website Anti-CNN.com, which is critical of Western media coverage. The
meeting quickly made the rounds online, with several commenters complimenting the
U.S. diplomats for their openness. "The American officials showed tolerance, politeness
and a democratic style because they were open to any question, even questions that are
very controversial," Zhao Jing, a popular blogger who attended the meeting and writes
under the pen name Michael Anti, told TIME.
There is a long history of Chinese officials censoring the comments of U.S. presidents. In
1984 when President Ronald Reagan gave a speech in Beijing, state-run China Central
Television cut portions that referred to the Soviet Union, religion and democracy. During
Obama's inaugural speech in January, China's state television cut away when the
president referred to previous American generations that had faced down communism.
The line that followed was also edited from television broadcasts and from transcripts on
many Chinese news portals: "To those who cling to power through corruption and deceit
and the silencing of dissent, know that you are on the wrong side of history; but that we
will extend a hand if you are willing to unclench your fist."
After a temporary easing up during the 2008 Olympics, China's system of online controls
has grown noticeably stricter in recent months, and social networking sites like Twitter
and Facebook are now blocked. The decision to block Twitter followed the Iranian use of
the social networking site in June, says Xiao Qiang, the director of the China Internet
Project at the University of California, Berkeley. Websites discussing sensitive topics like
Tibet, the Tiananmen crackdown and the banned Falun Gong spiritual movement are also
routinely blocked, and in the Xinjiang region, which experienced bloody ethnic riots in
July, people are barred from public Internet access and international phone service. The
Chinese censorship regime tends to allow some dissident information online, as long as it
remains marginal. "It's not about absolute control," Xiao says. "It's about effective
control."
Online outreach by the Obama Administration is designed in part to bypass such
censorship, and increase direct communications with the Chinese people. Secretary of
State Hillary Clinton, for one, has been particularly aggressive on the issue since taking
office. During her first trip to Asia, she participated in a webchat interview on climate
change in Beijing, hosted by the China Daily, during which she responded to questions
submitted online. According to the state-owned newspaper, the chat drew more than 10.2
million page views, 50,000 comments and 7,000 questions.
Still, the media feeds into many misconceptions about America in China. During the U.S.
embassy briefing in Beijing, Anti-CNN founder Rao told officials — in what he would
103
later describe as an attempt at humor — that he had seen how the CIA uses extra-legal
powers, on the American television show Prison Break and in the Transformers films.
How could the U.S. protect Web users?, he asked. "I would recommend that you not use
Prison Break and Transformers as your only guide to American culture and government,"
a U.S. official responded.
• China's role alters dynamics for Obama's visit (15th November)
When President Barack Obama visits China for the first time today, he will, in many
ways, be assuming the role of profligate spender coming to pay his respects to his banker.
That stark fact -- China is the largest foreign lender to the United States -- has changed
the core of the relationship between the United States and the only country with a
reasonable chance of challenging its status as the world's sole superpower.
The result: Unlike his immediate predecessors, who publicly pushed and prodded China
to follow the Western model and become more open politically and economically,
Obama will be spending less time exhorting Beijing and more time reassuring it.
In a July meeting, Chinese officials asked their American counterparts detailed questions
about the health care legislation making its way through Congress. The president's budget
director, Peter R. Orszag, answered most of their questions. But the Chinese were not
particularly interested in the public option or universal care for all Americans.
"They wanted to know, in painstaking detail, how the health care plan would affect the
deficit," one participant in the conversation recalled. Chinese officials expect that they
will help finance whatever Congress and the White House settle on, mostly through
buying Treasury debt, and like any banker, they wanted evidence that the United States
had a plan to pay them back.
It is a long way from the days when President George W. Bush hectored China about
currency manipulation, or when President Bill Clinton exhorted the Chinese to improve
human rights.
Mr. Obama has struck a mollifying note with China. He pointedly singled out the
emerging dynamic at play between the United States and China during a wide-ranging
speech in Tokyo yesterday that was meant to outline a new American relationship with
Asia.
"The United States does not seek to contain China," Mr. Obama said. "On the contrary,
the rise of a strong, prosperous China can be a source of strength for the community of
nations."
He alluded to human rights but did not get specific. "We will not agree on every issue,"
he said, "and the United States will never waver in speaking up for the fundamental
values that we hold dear -- and that includes respect for the religion and cultures of all
people."
White House officials have been working for months to make sure that Mr. Obama's
three-day visit to Shanghai and Beijing conveys a conciliatory image. For instance, in
June, the White House told the Dalai Lama that while Mr. Obama would meet him at
some point, he would not do so in October, when the Tibetan spiritual leader visited
Washington, because it was too close to Mr. Obama's visit to China.
Greeting the Dalai Lama, whom China condemns as a separatist, weeks before Mr.
Obama's first presidential trip to the country could have alienated Beijing, administration
officials said. Every president since George H.W. Bush in 1991 has met the Dalai Lama
when he visited Washington, usually in private encounters at the White House, although
104
in 2007 George W. Bush became the first president to welcome him publicly, bestowing
the Congressional Gold Medal on him at the Capitol. As a senator, Mr. Obama met the
Dalai Lama.
Similarly, while Mr. Obama was campaigning for the presidency, Mr. Obama several
times accused China of manipulating its currency, an allegation that the current Treasury
secretary, Timothy F. Geithner, repeated during his confirmation hearings. But in April,
the Treasury Department retreated from that criticism, issuing a report that said China
was not manipulating its currency to increase its exports.
While U.S. officials said privately that they remained frustrated that China's currency
policies lowered the cost of Chinese goods and made American products more expensive
in foreign markets, they said that they were relieved that China was fighting the global
recession with an enormous fiscal stimulus program to spur domestic growth, and added
that now was not the time to antagonize Beijing.
China is not viewed as a trouble spot for the United States. But this administration, like
its predecessor, has had difficulty grappling with a rising power that seems eager to avoid
direct clashes with the United States but affects its interests in many areas, including
currency policy, nuclear proliferation, climate change and military spending.
In that regard, two members of Mr. Obama's foreign policy team said that the United
States' interactions with the Chinese had been far too narrow in past years, focusing on
counterterrorism and North Korea. Too little was done, they said, to address China's
energy and environmental policies, or its expansion of influence in Southeast Asia, South
Asia and Africa, where China has invested heavily and used billions of dollars in aid to
advance its political influence.
One hint of the Obama administration's new approach came in a speech this fall by James
B. Steinberg, the deputy secretary of state, who has deep roots in China policy. He argued
that China needed to adopt a policy of "strategic reassurance" to the rest of the world, a
phrase that appeared intended to be the successor to the framework of the Bush era, when
China was urged to embrace a role as a "responsible stakeholder."
"Strategic reassurance rests on a core, if tacit, bargain," Steinberg said. "Just as we and
our allies must make clear that we are prepared to welcome China's 'arrival,'" he argued,
the Chinese "must reassure the rest of the world that its development and growing global
role will not come at the expense of security and well-being of others."
The Chinese reaction has been mixed, at best. The official China Daily newspaper ran a
column just before Mr. Obama's arrival suggesting that the United States needed to
provide some assurance of its own -- to "respect China's sovereignty and territorial
integrity," code words for entirely backing away from the issues of how China deals with
Taiwan and Tibet.
In the United States, the phrase has been attacked by conservative commentators, who
argue that any reassurance that the United States provides to China would be an
acknowledgment of a decline in U.S. power.
In an op-ed article in The Washington Post, Robert Kagan and Dan Blumenthal argued
that the policy had echoes of Europe "ceding the Western Hemisphere to American
hegemony" a century ago. "Lingering behind this concept is an assumption of America's
inevitable decline," they wrote. White House officials shot back, insisting that it is China
that needs to do the reassurance, not the United States.
105
In China, Mr. Obama will meet with local political leaders and will host an Americanstyle town hall meeting with students in Shanghai. He will then spend two days in Beijing
meeting with President Hu Jintao.
It seems unlikely that Mr. Obama will get the same celebrity-type reception in Beijing
that he received in Cairo, Ghana, Paris and London. China seems mostly immune to the
Mr. Obama fever that swept other parts of the world, and the Chinese are growing more
confident that their country has the wherewithal to compete with the United States on the
world stage, analysts say.
"Obama is still a positive guy, and all over the world most people think he's more
energetic, more sincere, than Bush, more a reformist," said Shi Yinhong, a professor and
an expert on U.S.-China relations at People's University in Beijing. "But in China,
Obama's popularity is less than in Europe, than Japan or Southeast Asia." In China, he
said, "there is no worship of Obama."
For instance, during the Bush and Clinton years, China might release a few political
dissidents on the eve of a visit by the president as a good-will gesture. This time, U.S.
officials say, they do not expect any similar gestures, although they say that Mr. Obama
will raise human rights issues privately with Mr. Hu.
"This time China will agree to have a human rights dialogue with the U.S. on some
cases," Mr. Shi said, but "the arguments have changed compared to the past. Now we say,
'We are a different country; we have our own system, our own culture.'"
(post-gazette.com)
• China-U.S. trade war unlikely (15th November)
There is little possibility China and the United States will become embroiled in a fullblown trade war despite trade friction between the two countries will likely rise in the
months ahead, China Daily reported.
The newspaper said since U.S. President Barack Obama announced special duties on
tire imports from China in September, trade tensions between two of the world's most
important economies have tightened and spread to other areas, but few believe a trade
war of any kind will break out.
"There is neither sign nor reason that China and the U.S. will turn the conflicts into a
war. It's not good for either party," He Weiwen, a senior expert on WTO and China-U.S.
trade relations was quoted by the newspaper as saying.
It is estimated trade remedy cases, as of last year, only account for 5 percent of the
bilateral trade volume, said China Daily.
"They are a minimal part of bilateral trade and happened in a special period. Cases will
decrease when the U.S. economy turns good," He said.
In his visit to China in late October, U.S. Secretary of Commerce Gary Locke said both
countries should avoid trade protectionist measures against each other. Both would be
losers if trade conflicts escalate into a trade war.
Most observers believe the U.S. will not launch additional trade remedy cases for fear
of antagonizing China, said the newspaper.
But He Weiwen warns as unemployment rate is expected to remain high next year, the
U.S. will initiate more trade protectionist cases with China being the major target.
It is expected trade issues will be a topic for discussion as Obama starts his visit to
China Sunday.
106
Chinese vice premier leaves for World Summit on Food Security, Syria visit (15th
november)
Chinese Vice Premier Hui Liangyu left here Sunday for the World Summit on Food
Security and an official visit to Syria.
His trips are respectively at the invitation of Jacques Diouf, director general of the
Food and Agricultural Organization of the United Nations (FAO) and Syrian Deputy
Prime Minister Abdullah al-Dardari.
An earlier statement by the Chinese Foreign Ministry said the UN food meeting was
scheduled for Nov. 16 to 18 in Rome, Italy and the Syria visit were from Nov. 18 to 20.
•
• In first visit to china, Obama walks a tight rope (15th November)
President Barack Obama is walking a tightrope on his first trip to China, seeking to enlist
help in tackling urgent global problems while weighing when and how - or if - he should
raise traditional human rights concerns.
Obama arrived in Shanghai late at night, in a driving rain, hustling through a phalanx of
umbrella-holding dignitaries to reach his limousine. On Monday, the president is holding
talks with local politicians and, in one of the marquee events of his weeklong Asian trip,
conducting an American-style town hall discussion with Chinese university students.
Thirty years after the start of diplomatic relations between the two countries, the ties are
growing - but remain mixed on virtually every front.
The two nations are partnering more than ever on battling global warming, but they still
differ deeply over hard targets for reductions in the greenhouse-gas emissions that cause
it. China has supported sterner sanctions to halt North Korea's nuclear weapons program,
but it still balks at getting more aggressive about reining in Iran's uranium enrichment.
China is a huge and lucrative market for American goods and services, and yet it has a
giant trade deficit with the U.S. that, like a raft of other economic issues, is a bone of
contention between the two governments. The two militaries have increased their
contacts, but clashes still happen and the U.S. remains worried about a dramatic buildup
in what is already the largest standing army in the world.
Amid all that, Obama has adopted a pragmatic approach that stresses the positive,
sometimes earning him criticism for being too soft on Beijing, particularly in the area of
human rights abuses and what the U.S. regards as an undervalued Chinese currency that
disadvantages U.S. products.
Obama recognizes that a rising China, as the world's third-largest economy on the way to
becoming the second and the largest foreign holder of U.S. debt, has shifted the dynamic
more toward one of equals. For instance, Chinese questions about how Washington
spending policies will affect the already soaring U.S. deficit and the safety of Chinese
investments now must be answered by Washington.
Second, Obama wants not to anger Beijing, but to encourage it to pair its growing
economic and political clout with greater leadership in solving some of the most urgent
global problems, including a sagging economy, warming planet and the spread of
dangerous weapons.
Obama has talked warmly toward China, particularly in the days leading up to his visit.
107
"The United States does not seek to contain China," Obama said in a speech from Tokyo
on Saturday. "On the contrary, the rise of a strong, prosperous China can be a source of
strength for the community of nations."
One test of the line Obama is walking on China will be human rights, including religious
freedom in the officially atheist nation. Aides said in advance that Obama would raise
several human rights issues privately with Chinese leaders, including President Hu Jintao.
But it was unlikely he would repeat those messages too stridently in public, out of
concern for angering his hosts. Even before arriving in China, for example, he declined to
get specific about human rights concerns with China in his Tokyo speech and eschewed
the traditional presidential meeting with the Dalai Lama while he was in Washington in
June.
Obama said he would see the exiled Tibetan spiritual leader later, a decision welcomed
by Chinese officials who pressure foreign governments not to meet with the Dalai Lama
and spurn Tibetans' desires for autonomy from Chinese rule.
The White House hoped Monday's town hall meeting with Chinese university students
would allow Obama to telegraph U.S. values - through its successes and failures - to the
widest Chinese audience possible.
But those hopes will have their limits in communist-ruled, tightly controlled China. The
particulars of the town hall, including whether it could even be called one, were the
subject of delicate negotiations between the White House and the Chinese up to the last
minute. It remained unclear, for instance, whether - and how broadly - it would be
broadcast on television and how much of a hand the central government had in choosing
those allowed to question the U.S. president.
Obama deputy national security adviser Ben Rhodes said Obama would call at random on
several of those in the audience, to be made up of hundreds of students hand-picked by
the department heads of Shanghai-area universities, and would also answer questions
solicited in advance by the White House from "various sources on the Internet."
Even if the event is only aired on China's main English-language TV channel, which has
very few viewers, the White House will stream the conversation live on
http://www.whitehouse.gov, an unblocked site in China.
From Shanghai, Obama was to be off to the capital of Beijing for the pomp and substance
of a two-day state visit hosted for Obama by Hu.
Obama's China visit features the only sightseeing of his high-intensity Asian journey. He
will visit the Forbidden City, home of former emperors in Beijing, and the centuries-old
Great Wall outside of the city. Visiting a country's noted landmarks is considered a sign
of respect in the world of diplomacy. But Obama aides also have learned that finding
some tourist time serves to both calm and energize their boss amid the always grueling
schedule of a foreign trip.
• Obama treads cautiously on his first visit to China (15th November)
The US President Barack Obama was due to arrive in Shanghai late yesterday for the first
leg of his maiden journey to China. His trip is likely to highlight the two countries’
common ground on global issues such as climate change and the need to bring about
sustainable economic recovery.
108
Mr Obama looks likely to adopt a largely positive tone when he meets Chinese officials.
Sensitive issues such as human rights will feature in the dialogue, but you can expect
them to be framed in a way that will allow China to avoid diplomatic embarrassment.
China’s growing economic muscle means that Sino-US relations have become more
important than ever to the US. Expect the tone of Mr Obama’s China debut to reflect the
need to cultivate those relations, while pushing for his country’s flagging manufacturers.
“When two leaders of the world’s big powers come together, there is no doubt that they
will talk about substantive issues,” said Jin Canrong, the associate dean of the School of
International
Studies
at
the
People’s
University
of
China.
China is the largest foreign creditor of the US, so Washington is keen to encourage good
relations with a country that is also expected to become the world’s second-largest
economy next year, overtaking Japan.
Sino-US relations are as healthy as they have been for a long time, so don’t expect
Mr Obama and the Chinese president Hu Jintao to dwell too long on some of the more
serious
tests
facing
these
relations.
But they are indeed serious challenges, the two most pressing being what the Chinese see
as protectionist measures being introduced by the US to encourage growth in its flagging
domestic manufacturing sector.
For the Americans, and for many countries in the region, the low value of the Chinese
yuan
against
other
currencies
is
a
major
irritant.
Since Mr Obama in September announced special duties of 35 per cent on Chinese-made
tyre imports, there have been all manner of trade tensions around in various sectors.
Also, joblessness remains high in the US, so protectionism from the American side is
likely to stay in place, the Chinese officials say. Analysts agree, however, that a trade war
is an unlikely scenario.
“There is neither sign nor reason that China and the US will turn the conflicts into a war.
It’s not good for either party,” said He Weiwen, a senior expert on the World Trade
Organisation and China-US trade relations, the China Daily newspaper reported.
“They are a minimal part of bilateral trade and happened in a special period. Cases will
decrease
when
the
US
economy
turns
good,”
Mr
He
said.
During a visit to China last month, the US commerce secretary Gary Locke said measures
that were too protectionist would harm both sides.
The White House has already said Mr Obama would raise the difficult issue of whether
China’s
yuan
is
undervalued.
109
The yuan’s value versus the dollar has for all intent been pegged since the outset of the
economic crisis last year. However, the dollar has declined 14 per cent in the past year
against
the
currencies
of
six
major
trading
partners.
Many investors in the region believe the yuan is due to rise, and China’s central bank last
week said it would consider major currencies in guiding the yuan, which has been read as
hinting at a departure from an unofficial peg. But the vice commerce minister Chen Jian
adopted a more cautious tone at the weekend towards any perceived policy change.
Chinese companies have gained market share at the expense of rivals in countries with
currencies that have risen against the falling dollar. The Chinese banking regulator Liu
Mingkang warned a meeting in Beijing yesterday of the dangers of speculators in foreign
exchange markets feeding off low interest rates in the US and putting a global recovery at
risk.
The UBS China economist Wang Tao believes that any move on the peg will happen as
long as exports remain in double-digit decline. Many in the Chinese government and
among the general public oppose any appreciation because of the harm it would do to
domestic industry,” she said.
“Therefore, we think the [yuan versus the dollar] will remain roughly unchanged at 6.8
for at least another six months, unless the dollar depreciates much more against other
major
currencies
in
the
meantime.
“By mid 2010, China will likely be looking at a period of positive export growth, GDP
growth at or above 10 per cent year-on-year in the previous two quarters and a much
clearer picture of global recovery. At that time, we think the yuan will resume its
appreciation against the dollar, reaching 6.4 to 6.5 by the end of 2010.”
Working out just what the Chinese are going to say on the trip is a tough question. The
language used by the foreign minister Yang Jiechi on the sidelines of the of the AsiaPacific Economic Co-operation meeting in Singapore was decidedly upbeat, if somewhat
opaque.
“The Chinese government attaches great importance to Sino-US ties, and is willing to
share the efforts with the United States to enhance dialogues, exchanges and cooperation,” said Mr Yang, adding other positive comments about bilateral ties.
This is the standard line given when any foreign head of state comes to town, and is as
true
of
Addis
Ababa
and
La
Paz
as
it
is
of
Washington.
“The United States does not seek to contain China,” Mr Obama said at the weekend. “On
the contrary, the rise of a strong, prosperous China can be a source of strength for the
community
of
nations.”
Although it is his first trip to China, he has met Mr Hu three times and these talks with
110
the Chinese leadership will focus on issues where the US and China are more likely to
find agreement, such as climate change, and in working on matching China’s growing
economic might with global political clout.
“I see China as a vital partner, as well as a competitor … together we are encouraging
responsible behaviour around the world,” Mr Obama said in an interview last week.
He said Sino-US was the most important relationship. But importance does not guarantee
success.
• Obama unlikely to push China hard on currency (15th November)
In his visit to Beijing this week, President Barack Obama is expected to tread lightly
when pressing China to let its currency rise against the dollar.
Doing so would benefit the U.S. economy by making American-made goods cheaper in
China, but Obama is reluctant to upset Beijing.
China is the No. 1 lender to the U.S. at a time when the latest annual budget deficit
hit a record $1.42 trillion. That makes for a lot of Treasurys to be sold. China has
expressed concerns that the falling dollar threatens the value of its existing U.S. holdings.
The United States also needs China's help in dealing with foreign policy threats. Those
include curbing the nuclear ambitions of North Korea and Iran.
There's another reason for a gentler U.S. stance: Analysts believe China already signaled
last week that it was preparing to let its currency rise against the dollar. That shift could
eventually aid U.S. manufacturers. It might also feed a U.S. economic rebound.
But China is also applying some pressure on the U.S. about its currency.
On Sunday, China's top bank regulator said the weak dollar and low interest rates were
distorting global asset prices and posing an "insurmountable risk to the recovery of the
world economy," according to a transcript of a speech he made at a financial forum in
Beijing.
The regulator, Liu Mingkang, said the declining dollar and low interest rates were
encouraging a "massive" U.S. dollar carry trade - the practice of borrowing money at low
rates in one currency to invest in assets in another currency that offer a higher return.
Analysts say China will likely wait months before tweaking the yuan-dollar exchange
rate, which now stands at about 6.8 yuan to the dollar. Beijing doesn't want to appear to
be bowing to U.S. pressure. Even then, it will take time for the U.S. to benefit.
Mark Zandi, chief economist at Moody's Economy.com, says he expects the Chinese to
begin allowing the yuan to rise against the dollar by next spring, at a rate of about 5
percent a year.
At that pace, it would take until around 2015 for the two currencies to be in balance - a
process Zandi said could help narrow the U.S. trade gap with China, which last year hit
$268 billion.
U.S. manufacturers won't likely be satisfied. They want the administration to push
Beijing to raise the yuan's value further and faster. Their exports have been hurt by
China's move last year to peg the yuan to the dollar. They contend the yuan is
undervalued by up to 40 percent.
From 2005 to 2008, the Chinese had allowed the yuan to rise about 20 percent against the
dollar. It started pegging its currency to the dollar in mid-2008, once the global recession
began hurting China's exports.
111
Normally, a low dollar would make U.S. goods cheaper for hundreds of millions of
Chinese consumers. But since the Chinese have kept the yuan tightly linked to the dollar,
U.S. exporters haven't been able to capitalize.
"Obama will raise the currency issue (during his visit), but he is in no position to push the
Chinese simply because he lacks any levers to make the Chinese do something they do
not want to do," said Eswar Prasad, an economist at Cornell University and senior fellow
at the Brookings Institution.
China's central bank made its subtle yet surprising shift in the wording of its exchangerate policy on Thursday. In the arcane language that governs the $3-trillion-a-day
currency markets, many analysts read the shift as a signal that Beijing was getting ready
to let the yuan resume rising against the dollar.
The dollar has been sliding in value against many major currencies. U.S. exports to
Europe have benefited, because the dollar has fallen about 18 percent against the euro
since early March.
And since the Chinese have linked their currency to the dollar, the dollar's fall has
benefited them, too. It's made Chinese products cheaper in Europe and elsewhere where
currencies have risen against the dollar. If Beijing let the yuan rise, those Chinese goods
would become more expensive.
For now, a weak yuan isn't all bad for the U.S. It's meant a break for American
consumers and retailers, such as Wal-Mart, that buy goods imported from China.
But many countries have complained about the weaker dollar and China's close link to it.
Some, such as Thailand, South Korea and Russia, have sought to stem the dollar's rise
against their currencies by buying dollars.
American manufacturing groups blame the low yuan for contributing to the loss of 5.6
million manufacturing jobs in the past decade. During that time, America's trade gap with
China has soared.
"The rising trade deficit is an ominous sign for an economic recovery anytime soon,"
Scott Paul of the Alliance for American Manufacturing said after the government
reported Friday that the deficit with China jumped sharply in September.
The issue has riled some on Capitol Hill at a time when the U.S. unemployment rate has
hit a 26-year high of 10.2 percent and lawmakers are under pressure to help create jobs.
Legislation in the House and Senate would allow for tariffs on Chinese goods if Beijing's
currency policies don't change.
Treasury Secretary Timothy Geithner, at the Asia-Pacific Economic Cooperation finance
meetings in Singapore last week, repeated his mantra that "it's very important to the
United States that we have a strong dollar."
The administration has done nothing to halt the dollar's slide. Some have seen that as a
signal that the U.S. feels a weak dollar relative to major currencies, other than the yuan,
helps U.S. exports.
But with the United States reliant on foreigners to finance nearly $8 trillion in publicly
held debt, it can't openly back a weaker dollar. Doing so would cause investors to dump
dollars. The dollar would sink, U.S. interest rates would likely surge and the fledgling
U.S. economic recovery could risk collapse.
Many economists contend that even if China let its currency rise sharply against the
dollar, Beijing would still enjoy trade advantages. Those include its low-wage work force
and barriers it's erected to limit imports of U.S. and other foreign-made goods.
112
Other factors contribute to the trade gap. China is a high-saving country. It relies on
exports to power growth. By contrast, U.S. consumers have driven global growth for
decades with high spending and low savings.
"Achieving global balance sounds great in theory, but there are a lot of skeptics out there
who wonder what the enforcement mechanism will be," said Nicholas Lardy, an
economist at the Peterson Institute for International Economics in Washington.
• Obama visit highlights new US-China relations (15th November)
When President Obama visits China for the first time today, he will, in many ways, be
assuming the role of profligate spender coming to pay his respects to his banker.
That stark fact - China is the largest foreign lender to the United States - has changed the
core of the relationship between the United States and the only country with a reasonable
chance of challenging its status as the world’s sole superpower.
The result: Unlike his immediate predecessors, who publicly pushed and prodded China
to follow the Western model and become more open politically and economically,
about the health care legislation making its way through Congress. The president’s
budget director, Peter R. Orszag, answered most of their questions. But the Chinese were
not particularly interested in the public option or universal care for all Americans.
“They wanted to know, in painstaking detail, how the health care plan would affect the
deficit,’’ one participant in the conversation recalled.
Chinese officials expect that they will help finance whatever Congress and the White
House settle on, mostly through buying Treasury debt, and like any banker, they wanted
evidence that the United States had a plan to pay them back.
currency manipulation, or when President Clinton exhorted the Chinese to improve
human rights.
Obama has struck a mollifying note with China. He pointedly singled out the emerging
dynamic at play between the United States and China during a wide-ranging speech in
Tokyo yesterday that was meant to outline a new American relationship with Asia.
“The United States does not seek to contain China,’’ Obama said. “On the contrary, the
rise of a strong, prosperous China can be a source of strength for the community of
nations.’’
He alluded to human rights but did not get specific. “We will not agree on every issue,’’
he said, “and the United States will never waver in speaking up for the fundamental
values that we hold dear - and that includes respect for the religion and cultures of all
people.’’
White House officials have been working for months to make sure that Obama’s threeday visit to Shanghai and Beijing conveys a conciliatory image.
For instance, in June, the White House told the Dalai Lama that while Obama would
meet him at some point, he would not do so in October, when the Tibetan spiritual leader
visited Washington, because it was too close to Obama’s visit to China.
Greeting the Dalai Lama, whom China condemns as a separatist, weeks before Obama’s
first presidential trip to the country could have alienated Beijing, administration officials
said.
113
Every president since George H.W. Bush in 1991 has met the Dalai Lama when he
visited Washington, usually in private encounters at the White House, although in 2007
George W. Bush became the first president to welcome him publicly, bestowing the
Congressional Gold Medal on him at the Capitol. As a senator, Obama met the Dalai
Lama.
• Navy ship returns after 20-day visit (16th November)
The Zheng He training ship of the Navy of People's Liberation Army that has 370 people
on board returned to a naval base here yesterday after a 20-day visit to the Republic of
Korea's Chinhae port and Japan's port of Kure.
• Obama kicks off first visit to China (16th November)
United States President Barack Obama arrived last night at Shanghai Pudong
International Airport to kick off his first visit to China, and will begin negotiations that
will likely take a more cooperative tone than that of his predecessors.
The 48-year-old is the first US president to visit China within the first year of taking
office. He will arrive in Beijing this afternoon during his four-day visit and meet
President Hu Jintao, top legislator Wu Bangguo and Premier Wen Jiabao tomorrow and
on Wednesday.
The China trip is also part of his first to Asia as president. In his wide-ranging speech in
Japan on Saturday, Obama said he would welcome, not fear, a robust China as a powerful
partner on urgent challenges.
"The rise of a strong, prosperous China can be a source of strength for the community of
nations," he told 1,500 prominent Japanese.
"We welcome China's efforts to play a greater role on the world stage, a role in which
their growing economy is joined by growing responsibility."
In recent years, the US has uttered harsher words about China. President George W. Bush
pressured the nation about its currency rate, while president Bill Clinton prodded China
on human rights.
Obama said Washington would work hard to build on newer relations with Asian nations
such as China and Indonesia aside from strengthening alliances with Japan and the
Republic of Korea.
The White House said he plans to talk with Chinese leaders about re-evaluating the
Chinese currency. Shared challenges such as the economic crisis, nuclear
nonproliferation and energy cooperation will also loom large in discussions.
Obama's Air Force One landed in Shanghai at about 11:16 pm last night with Chinese
ambassador to the US Zhou Wenzhong greeting him.
His motorcade of black limos then headed toward Portman Ritz-Carlton Hotel in the city
center. The hotel has been sealed off by local police.
Obama is expected to meet with local leaders in Shanghai this morning.
He is also scheduled to meet 300 local youths in the afternoon at Shanghai Science and
Technology Museum. Most of them will come from Fudan and Tongji universities.
114
The meeting will last 75 minutes with Obama speaking for 15 minutes followed by an
hour-long question-and-answer session. The event will be broadcast live online,
according to Xinhua News Agency.
In the Obama craze that has caught on with many in Shanghai as well as in China,
youngsters make up a large contingency of his fans.
A post on Xinhua's website that called for and collected questions that could be posed to
Obama during the youth dialogue, has received more than 3,000 responses as of
yesterday afternoon. T-shirts bearing Obama's image are also selling well in major cities.
The Chinese edition of his book The Audacity of Hope has sold more than 130,000
copies in China. The book and his other work, Dreams From My Father, are favorites of
street vendors of pirated bestsellers.
The admiration among the youth "is great news for Obama", according to the Christian
Science Monitor, a Boston-based newspaper. The paper said "the long-term future of USChina relations is dependent ultimately on the youth of China."
The White House earlier said the US leader's talks with Shanghai youngsters would be
about the future of Sino-American relationship.
"They are the audience (Obama) should pay special attention to. If he can maintain
popularity among them, his influence in China has high potential," said the newspaper.
Shi Yinhong, a senior international relations expert with Beijing-based Renmin
University of China, said that Obama is likely to redefine China-US relations during his
visit.
"He will readjust the 'responsible stakeholder and constructive partner' label of his
predecessor George W. Bush, and add new meaning to relations," said Shi.
But Pang Zhongying, also from Renmin University of China and a former visiting fellow
at Washington-based Brookings Institution, said what Obama actually does is much more
important than what he says.
"It's Obama's trip-of-study to form his China view," Pang said.
"The important thing is to see what the visit can really bring (to bilateral ties)," he said,
adding that both countries may find that their differences in opinion on some issues such
as climate change may not be as vast.
Leaders from both countries will certainly "agree to disagree" on many other issues, he
added.
Obama's itinerary in Beijing also includes sightseeing tours at the Forbidden City and the
Great Wall.
It is also reported that he might meet in Beijing his half-brother, Mark Okoth Obama
Ndesandjo, who has lived in the southern metropolis of Shenzhen for seven years and
speaks fluent Mandarin.
• Obama holds dialogue with Chinese Youths (16th November)
Visiting U.S. President Barack Obama on Monday noon arrived in Shanghai Science and
Technology Museum for a dialogue with Chinese youths.
•
Obama welcomes China as a "strong, prosperous and successful" nation (16th
November)
115
Visiting U.S. President Barack Obama said here Monday the United States does not seek
to contain China's rise and he welcomes China to be a "strong and prosperous and
successful member of the community of nations."
Obama made the remarks during a dialogue with Chinese youths in China's economic
hub Shanghai.
He said the world is fundamentally interconnected and power in the 21st century is no
long a zero-sum game.
"The jobs we do, the prosperity we build, the environment we protect and the security
we seek are all shared, " he said. "One country's success does not come at the expense of
another."
He arrived in Shanghai late on Sunday and met city officials Monday morning before
his meeting with young Chinese.
He will head to Beijing Monday afternoon.
• Opinion split on Barack's journey (16th November)
As Barack Obama stepped down from Airforce One in Shanghai last night, many in the
US were apparently split on what kind of country was welcoming him.
The neocons - those who see the world as "we democracies versus you autocracies" - say
he is on his way to kowtow to Beijing. Even the phrase "strategic assurance" used by
some in the Obama administration has been picked up as a signal US hegemony could be
ceded. What they believe is fundamentally old-fashioned thinking.
Meanwhile, the liberals in the US, who are still struggling with the consequences of a
decade with an unregulated economy, seem to envy China's role as a banker receiving a
profligate client. They worry it has changed the dynamic of the nations' relationship, and
that the Chinese are now more interested in a visiting US president's credit standing than
listening to him preach about so-called Western models.
Neither the former, nor the latter scenario sheds light on the countries' seemingly odd
relationship.
As some cling to their dualistic, ideologically tinged world view, much of the world is
changing. That is perhaps also why the idea of a United Nations for democracies, or
something like that, failed to win the majority of support during last year's US
presidential election.
While there are governments that fail after claiming to be strong supporters of the US,
faithful allies and even friends with democratic DNA, China, without claiming any of
those, can only earn its respect in the world by working hard and relying primarily on its
effort to improve its people's well-being, as well as by being a worthy competitor in the
globalization game.
This was the Chinese way even when the nation was much poorer and weaker than today.
History has shown that China is not only capable of change, it is changing itself fast.
Admittedly, there are plenty of poor people in this country, and corruption and
lawlessness are still in the way. But no one can say such change comes easily or that
something can be achieved in a nation boasting one-fifth of the world's population, and
continued for more than 30 years, by a few lucky autocratic rulers.
In their guts, Americans appreciate serious competition and people who work their way
to the top from humble beginnings. If China had stayed the way it was 30 years ago,
Obama would not even have sent his brother to visit this land.
116
But being a worthy competitor also means a disdain for winning with petty tricks for
immediate gains.
Indeed, one assurance China can immediately give to its US visitors is the anxiety the
nation has earned by having lent so much to the latter. Foreign correspondents have all
reported about the bickering among Chinese as to how dim-witted, if not unpatriotic, it is
to provide so much finance to the US economic machine.
In a time of crisis, especially one accompanied by a credit crunch, who wants to be
someone else's banker, even if they are invited to?
But even odder is that many people, both in China and in the US, tend to forget the fact
that the two countries are not of just the past and present. More importantly, they will
need each other in the future.
Just as during the past three decades, investment by US companies in China is said to be
carried out through a belief in the future.
The same could also be true of China's current investment in the US.
• Face-to-face meeting bridges all (17th November)
It was a learning experience for both sides.
"Nong Hao!" Those were US President Barack Obama's first words to the Chinese public
yesterday.
The US leader had learned to say "hello" in the Shanghai dialect from his ambassador Jon
Huntsman, to the delight of listeners during his dialogue with Chinese college students in
Shanghai.
At his first stop of a four-day trip to China, the president of "change" and "Yes, we can"
carried a clear message of "cooperation" to Chinese young people, said Lei Xiangling,
24, a graduate school student in China Agriculture University.
The visiting president's remarks in encouraging a more open and free online community
have made an impression on Internet users.
"It makes sense to have less restriction and more freedom in blogs, websites and forums,"
said Li Nan, 25, a software engineer in Hunan province.
"Maybe some of the comments on the forums are biased and even wrong. But as Internet
users become mature, they will gradually develop more objective opinions."
Obama's modest comments on his Nobel Prize fulfilled many people's curiosities
including Meng Si, 22, a writer for an environmental organization.
"I have great expectations for Obama since he gave the 'Yes, we can' speech in last year's
election."
Li Li, co-founder and chief director of China Youth Climate Action Network, said he was
excited over the possibility that Obama might have reached consensus on emissions
reduction.
"Without the agreement from the US and China, the negotiations in the upcoming
Copenhagen meeting on climate change will be even more challenging," he said.
Li, who has been actively involved in exchanges and communications with US young
people on climate change issues, said China has made a great deal of efforts in reducing
emissions.
"The US has been restricting our development rights by adopting climate change as a
political vehicle," Li said. "I think they are worried about changes to their own lifestyle."
117
He Liangliang, a commentator for Hong Kong-based Phoenix TV, said the interactions
with young Chinese people will be inspiring to both sides.
"Obama does not understand China very much," he said.
"The questions from Chinese young people, the issues young people care about most, are
one of the most crucial parts of Obama's interactions with the Chinese public," he said.
"To know more about the future leaders is one of the best ways to understand a country,"
said Dai Wenming, an international news editor in Shanghai.
"Chinese students demonstrated a wide range of knowledge of international affairs during
the meeting," she said.
However, the dialogue missed many heated issues in the Sino-US relationship, such as
trade frictions, and the US' energy and Asian strategies, Dai said.
• There's room for both of us: Obama (17th November)
Barack Obama was in typical eloquent form yesterday for a signature "town hall
meeting" with a difference.
While the relaxed style and well-constructed answers were characteristic of the United
States president, the fact that he was speaking to around 500 elite Chinese students,
possibly the leaders of tomorrow, made the 75-minute session in Shanghai an impressive
occasion.
Obama used the platform to talk about a wide range of issues, including the improving
relationship between the US and China and the strengthening of cross-Straits relations.
The meeting was heralded as one of the most important events on Obama's weeklong trip
to Asia.
The president fielded eight questions - half from audience members and half from among
those submitted over the Internet - during the casual and free-spirited event. Students
smiled and applauded politely when Obama answered questions and chuckled
appreciatively when he tried speaking Chinese.
"We do not seek to contain China's rise," Obama said during his opening remarks.
He assured his young audience the US and China were not "predestined adversaries".
One country's success need not come at the expense of another, he said.
"On the contrary, we welcome China as a strong and prosperous and successful member
of the community of nations, a China that draws on the rights, strengths and creativity of
individual Chinese like you," Obama said.
The president told his audience difficult problems will not be solved unless the world's
only superpower and its rising competitor learn to work together.
"More is gained when great powers cooperate than when they collide," he said.
Citing the Chinese saying "consider the past and you shall know the future", Obama said
the US and China have had setbacks and challenges during the past 30 years that they
should learn from.
And when asked about the potentially thorny issue of Taiwan, Obama said the US will
continue its support of the one-China policy. He said Washington had been very pleased
to see improved cross-Straits relations.
"I have been clear in the past, the US supports a one-China policy," Obama said. "We do
not want to change that policy or approach."
Obama's town hall meeting was not broadcast live across China on television but it was
shown on TV in Shanghai and streamed live online via two major Internet portals.
118
Obama used the forum to talk about some of the issues that have been hot topics in the
past, including "Internet freedom". "I'm a big supporter of not restricting Internet use,"
Obama said. "The more open we are, the more we can communicate, and it also draws
the world together."
He said such values were at the core of US thinking.
Tao Wenzhao, an expert on US studies at the Chinese Academy of Social Sciences, said
Obama chose a traditional town hall meeting to talk to Chinese youths because such
events suit his style as a natural performer and talented orator.
Obama's skill as a public speaker helped him win the hearts of young voters and ethnic
minorities in the US and he hoped to win over Chinese people in the same way, Tao said.
Sun Jingxuan, 19, a second-year undergraduate student at Shanghai Jiaotong University's
School of International and Public Affairs, was among the students who asked Obama a
question face-to-face.
Sun asked Obama if winning the Nobel Peace Prize had increased pressure on the
president and she wondered whether the award would change his attitude toward global
issues.
"I asked him this question because peace is a concern for China and the whole world,"
Sun told China Daily. "I hope Obama will be worthy of the prize."
Obama's answers to the eight questions touched upon a wide range of social issues
including history, culture and American values.
Tao said the president seemed to have moved on from some of the sticking points that
bogged down discussions between the countries in the 1990s, such as human rights.
He noted that the US president had labored the point that differences should not block
improved cooperation between the countries.
After his visit to Shanghai, Obama left for Beijing. He arrived in the capital yesterday
afternoon where he was greeted by Vice-President Xi Jinping at the airport.
• Barack copies town-hall style to Shanghai (17th november)
Town-hall style meetings helped Barack Obama win the hearts of US youths, and he is
copying that success in China, experts said.
Niu Xinchun, an expert from the China Institutes of Contemporary International
Relations, said Obama aims to "publicize American culture and ideals through his speech
to the young generation in China".
"US presidents coming to China almost talk about the same things," Niu said.
Interacting with young people helps the US president learn about the attitudes of "China's
future leaders" toward his country.
Fan Jishe, an expert from the Institute of American Studies of the Chinese Academy of
Social Sciences, said the Internet played a big role in Obama winning the support from
young Americans in his presidential election.
"He knows that a country's future lies in the hands of the new generation, and he wants to
get first-hand information. It is very important for him to know how young Chinese
people view their country and their future."
A town-hall meeting is a traditional American style public meeting. Attended by
community residents, it invites people to voice their opinions and communicate with a
public figure.
119
On March 26, Obama attended the first online town-hall meeting hosted by the White
House, answering questions on education, jobs and even legalizing marijuana.
• Taking new tact, Obama lends ears to young Chinese (17th November)
United States President Barack Obama's participation in yesterday's town-hall meeting
with Chinese youth in Shanghai sharpened the contrast between him and his predecessors
on several levels.
Strong rebukes over human rights dominated Bill Clinton's initial trip to the country.
George W. Bush's first visit was highlighted by poignant accusations of currency
manipulation by the country he called a "strategic rival".
Obama's tone went beyond exuding a more sophisticated finesse in addressing China that is, striking a better balance between tough talk and sweet talk - but also a
fundamentally different attitude about relations.
Instead of preaching US models to the Chinese students, he said, "each country must
chart its own course", and the US should not assume its system is "good for everyone
else".
While these declarations came with an important caveat - the US regards some values as
universal and will "speak out" on their behalf - he said his country should address
disagreements through dialogue, with "humility" and "understanding that we are not
perfect".
Much can also be inferred from the event's format, a microcosm of Sino-US relations in
that it resulted from lengthy and ultimately successful bilateral negotiations.
The town-hall meeting was likely honed to push forward Obama's point that cooperation
and deeper understanding are not only mutually reinforcing but also must extend beyond
governments to be "rooted in the people".
While expanding the US president's interactions beyond the realm of China's officialdom,
the platform was orchestrated to show Obama came not only to speak to China's youth
but also to listen to them.
While the global situation and Sino-US relations have dramatically changed since the
visits of previous US leaders, many of the same concerns linger.
But the comparatively judicious approach and attitude Obama demonstrated yesterday
suggests a greater likelihood of resolutions to tensions and challenges, new and old - and
to those that are yet to arise.
• China, US pledge to move forward together (18th November)
China and the United States pledged Tuesday to work together on a wide range of issues,
including anti-terrorism initiatives and law enforcement cooperation and to talk about
manned space flights and space exploration.
President Hu Jintao and visiting US President Barack Obama also agreed to develop a
"partnership" to deal with global challenges, including climate change, the economic
recovery and nuclear non-proliferation during their talks in Beijing.
The leaders also agreed that "each country and its people have the right to choose their
own path, and all countries should respect each other's choice of a development model,"
according to a joint statement released by the nations Tuesday.
Hu will visit the US next year at the invitation of Obama, the statement added.
120
"The two sides reiterated that the fundamental principle of respect for each other's
sovereignty and territorial integrity is at the core of the three Sino-US joint communiqus
which guide China-US relations," the statement said.
Obama reaffirmed Washington's commitment to the one-China policy and told
journalists: "The US respects the sovereignty and territorial integrity of China."
The leaders stressed they will also work together for a "positive outcome" at the
Copenhagen Climate Summit.
China has a clear and consistent goal on the nuclear issue on the Korean Peninsula, Hu
said, adding that Beijing hopes all parties will make the best of the opportunities and
return to the negotiating table.
Echoing Hu, Obama said the US also wants to see the resumption of Six-Party Talks and
will push for the denuclearization of the Korean Peninsula.
Hu said the many agreements resulted from "frank, constructive and fruitful" discussions
that he and Obama had Tuesday in the Great Hall of the People.
Both leaders "agreed to continue to adopt strategic and long-term perspective, increase
dialogue, exchanges and cooperation and work together to build a positive, cooperative
and comprehensive China-US relationship for the 21st century," Hu said when he met the
press alongside Obama after the talks.
The leaders' press conference and the official welcoming ceremony were broadcast live
on China's national television network CCTV.
Both heads of state were committed "to take concrete action to steadily grow a
partnership between the two countries to meet our common challenges," Hu said.
"We meet here at a time when the relationship between the US and China has never been
more important to our collaborative future," Obama told reporters.
"The major challenges of the 21st century - from climate change and nuclear
nonproliferation to economic recovery - are challenges that touch both our nations;
challenges that neither can solve by acting alone," Obama said.
Hu also championed more cooperation, stressing the need to steadily increase strategic
mutual trust between the countries, which would be preceded by respect and
accommodation of each other's core interests and major concerns.
• Wen hopes for further Sino-US cooperation (18th November)
Chinese Premier Wen Jiabao met visiting US President Barack Obama at the Diaoyutai
State Guest House in Beijing, November 18, 2009.
Wen and Obama exchanged views on Sino-US relations and a broad range of issues of
common concern, China News Agency reported.
China disagrees to the suggestion of a "Group of 2" (G2), Chinese Premier Wen Jiabao
said.
China is still a developing country with a huge population and has a long way to go
before it becomes modernized, Wen said.
"We must always keep sober-minded over it," he said.
They had a working lunch before Obama's sightseeing visit to the Great Wall in the north
suburb of the Chinese capital, which is another chance for the US head of state, who
toured the Imperial Palace Tuesday, to learn more about the ancient Chinese civilization.
Obama will conclude his fist visit to China and fly to the Republic of Korea, the last leg
of his four-state Asian tour, in the afternoon.
121
Wen hopes Obama's visit to lift China-US cooperation to new level
Chinese Premier Wen Jiabao said here on Wednesday that the fruitful visit of United
States President Barack Obama to China was of far-reaching significance.
"It is my sincere hope that your current visit will lift the comprehensive and cooperative
China-U.S. relations to a new level, " Wen told Obama at their meeting in the State
Guesthouse in Beijing.
Obama: China visit 'wonderful'
Visiting US President Barack Obama said Wednesday that his four-day state visit to
China was "wonderful."
Obama made the remark while visiting the Great Wall, the famous relics in the north
suburb of Beijing, on Wednesday afternoon.
In reply to a question by Xinhua about whether he was satisfied with his China visit,
Obama said: "Yes, it's a wonderful visit."
Obama will leave Beijing for South Korea in the evening.
•
Wen: China disagrees to so-called G2, calling for effort to fight protectionism
(18th November)
China disagrees to the suggestion of a "Group of Two" (G2), Chinese Premier Wen
Jiabao said at a meeting with visiting U.S. President Barack Obama in Beijing on
Wednesday.
China is still a developing country with a huge population and has a long way to go
before it becomes modernized, Wen said, stressing "We must always keep sober-minded
over
it".
China pursues the independent foreign policy of peace and will not align with any
country
or
country
blocks,
Wen
said.
Global issues should decided by all nations in the world, rather than one or two countries,
he
added.
"Meanwhile, we believe Sino-U.S. cooperation can play a unique role in advancing the
establishment of the new international political and economic order, as well as promoting
world
peace,
stability
and
prosperity,"
Wen
said.
Wen noted that the bilateral trade volume between China and the United States has
increased greatly since the two countries established diplomatic ties 30 years ago.
"This is in the fundamental interests of both countries and their people," Wen said. "We
do not pursue trade surplus and I hope the United States would lift its policy of restricting
high-tech products exports to China and increase their proportion in the U.S. exports to
China.
"Meanwhile, our two countries should strengthen mutual investment and cooperation in
122
such fields as energy, environmental protection and high technology for a more balanced
bilateral trade," Wen said.
• Chinese vice premier arrives in Damascus for visit (19th November)
Chinese Vice Premier Hui Liangyu arrived in Damascus Wednesday afternoon for an
official visit to Syria at the invitation of his Syrian counterpart Abdullah al-Dardari.
During his three-day stay here, Hui will hold talks with senior Syrian officials on bilateral
cooperation in trade and investment and activating economic cooperation between China
and
Syria.
The two sides will sign some cooperation and aid agreements during the visit, according
to
diplomatic
source.
Hui flew here from Rome, where he attended the World Summit on Food Security from
Monday to Wednesday.
New development in China-U.S. relations bears strategic significance (19th
November)
Nov. 15 to 18 are three usually unremarkable days on the calendar but this year they
attracted worldwide attention as U.S. President Barack Obama paid his first state visit to
China.
Obama arrived in China at the invitation of Chinese President Hu Jintao with the
international focus on how the two countries would address a raft of global issues. When
he left, analysts saw a new direction for developing the China-U.S. relationship, which
had major significance, and believed the summit had rendered bilateral relations stronger.
Hu and Obama reiterated in the China-U.S. Joint Statement that both sides were
committed to building a "positive, cooperative and comprehensive relationship in the 21st
century" and promised to take concrete action to build a partnership to jointly cope with
common challenges.
A NEW GOAL, ATTRACTIVE WORDING
In the press conference at the Great Hall of People, Hu said he and Obama were
positive about the development of the China-U.S. relationship since the inauguration of
the new U.S. administration11 months ago, and they agreed to strengthen dialogue,
communication and cooperation from a strategic and far-sighted perspective, and to make
joint efforts to build a positive, cooperative and comprehensive China-U.S. relationship
to promote world peace, stability and prosperity.
Obama said the partnership with China had helped his country to fight the most serious
financial crisis seen in generations.
He added that the China-U.S. relationship had never been more important to the
common future of the two countries. Challenges like climate change, nuclear
proliferation, or economic recovery could never be met with a single hand.
"That's why the United States welcomes China's efforts in playing a greater role on the
world stage, a role in which a growing economy is joined by growing responsibilities."
Jin Canrong, deputy dean of the International Studies School at China's Renmin
University, told Xinhua the new goal for the China-U.S. relationship was to build a
•
123
partnership to jointly cope with common challenges that was quite positive and
significant.
Fu Mengzi, director of the Institute of American Studies under the China Institute of
Contemporary International Relations, told Xinhua the partnership to combat common
challenges had positive and new meanings.
David Shambaugh, a George Washington University professor and senior fellow at the
Brookings Institution, said the outcome of the summit "reflects the 30 years of hard work
in building the relationship, as well as the growing strategic trust between the two sides."
He said both sides were actively committed to develop a "positive, cooperative and
comprehensive relationship in the 21st century," and a joint statement issued after the
meeting between the two presidents may help take China-U.S. relations into a "totally
new and positive era."
FACING GLOBAL CHALLENGES TOGETHER
As one of the topics of the meeting between Hu and Obama, facing global challenges
together has obtained great attention.
Fu said the challenges not only included those related to both parties, but also those
concerned with global interests.
The China-U.S. Joint Statement stressed that, with global challenges increasing, the
interdependence of all countries in the world had deepened and their need for peace,
development and cooperation had increased.
On numerous critical issues concerned with global stability and prosperity, China and
the United States have a broader basis for cooperation and shoulder more important
common responsibilities.
The two countries should further enhance coordination and cooperation, jointly cope
with common challenges and make efforts to promote peace, security and prosperity in
the world.
Jin said focusing on global issues during the meeting demonstrated the global
characteristic of China-U.S. relationship that had gone far beyond bilateral ties. Both
parties were seeking more areas for cooperation, he said.
Shambaugh told Xinhua the joint statement released on Nov. 17 was an extremely
positive document -- filled with countless examples of tangible Sino-American
cooperation on a large range of bilateral, regional, and global issues.
Mainichi Shimbun, a major daily in Japan, reported that both parties agreed on
deepening China-U.S. relations in a new era, which symbolized the bilateral ties had
entered a new phase of development.
Obama said at the press conference that the United States welcomed China as a
"strong, prosperous and successful member of the community of nations." This gave the
impression that both countries had entered a new era of cooperation on global issues, the
newspaper said.
Japan's Kyodo News reported that the Chinese and U.S. presidents agreed to cooperate
on a plethora of critical issues, including climate change and nuclear non-proliferation.
Differences on issues such as human rights and trade imbalances were not obvious,
which demonstrated that both sides had put intensifying bilateral ties as a priority, the
news agency said.
CONSOLIDATING FOUNDATION FOR FUTURE DEVELOPMENT
124
During his talks with Obama, President Hu made five proposals on further advancing
China-U.S. relations, of which the top priority was that the two countries should continue
to increase strategic mutual trust.
Trust and cooperation is the only way to deal with country-to-country relations in the
new era, Hu said, proposing that both sides view the world and each other and their
relations from a new perspective.
The two leaders also believed that to nurture and deepen bilateral strategic trust was
essential to China-U.S. relations in the new era. As Chinese Vice Foreign Minister He
Yafei said, the respect for each other's core interests is the "key" to their relations.
Fu told Xinhua China-U.S. relations had been closely connected with a solid
foundation based on common interests.
"There's no reason for the two countries to stray away from the status quo," Fu said,
adding that a new China-U.S. joint statement issued following the summit stressed the
will to enhance strategic mutual trust.
French newspaper Le Figaro said China's Hu welcomed a long-term strategic
relationship and Obama highlighted the great importance of the bilateral relations for the
future development of both countries.
Observers said Obama's visit to China could demonstrate an upgraded foundation for
bilateral relations.
This was echoed by Shambaugh, who said the meeting between the two leaders was
warm and sincere, showing an increasing strategic trust between China and the United
States.
Agreements between the two countries would bring more peace and stability to the
Asia Pacific region as well as the rest of the world, he added.
•
Barack Obama's exclusive interview with the Chinese media (19th November)
Before he departed China, Barack Obama gave an interview to the Southern Weekend
newspaper, one of China’s few outspoken and crusading titles.
The interview, which took place in Beijing, appears to have been carefully checked by
the Propaganda ministry. Nothing controversial was published. Nevertheless, the whole
thing was ripped out of the copies of the paper that were delivered this morning to several
foreign media bureaus in Beijing.
Here in Shanghai, the paper was freely available on the street, with the interview still
included. It is available on the internet here in Chinese.
Since just about everything that Mr Obama said while he was in China was censored out
of the domestic media, the print readership of this interview represents the widest
audience of ordinary Chinese that the president is likely to reach.
The interesting parts are Mr Obama’s call for more military cooperation in the Asia
Pacific region, and a promise that the US will have a second look at allowing hi-tech
goods to be exported to China.
Here is our English translation of the interview as it appeared in Chinese. If Mr Obama
comes across as less eloquent than usual, that’s because of the translation, no doubt.
Sorry.
INTERVIEW WITH SOUTHERN WEEKEND
125
Southern Weekend: Your visit to China is almost over. This was your first visit to
China, at this moment what are your thoughts?
Obama: This visit to China was fruitful. We have discussed a range of topics concerning
both sides. The continued development of the relationship between China and the US is
not just significant to the people of both countries, but also to the whole world.
Southern Weekend: You mentioned Yao Ming in Shanghai, and I know you are
interested in basketball. Do you still have time to play. Can you tell us more details about
your work and your life?
Obama: I don’t play basketball as often as before, but I try to have a game every week,
or every other week. I love watching games. I wish I could have seen the Shanghai
Sharks, but I didn’t have time. I hope to meet Yao Ming, he is one of my favourite
players.
Southern Weekend: This year is the 30th anniversary of the establishment of diplomatic
relations between China and the US. You said in the press conference that you welcome a
powerful and prosperous China that can play a bigger role on the world stage. In the joint
statement, China also said that the US plays an important role in the Asia-Pacific region.
How do you view the cooperation between China and the US in the region?
Obama: First of all, it is obvious that China has become one of the most significant
economic powers in the world and this has been one of the most important global
developments of the past two decades. Part of the reason for China’s rapid growth is that
it has a good trading relationship with the US. More importantly, the Sino-US
relationship is now bigger than just trade. We seek advice from each other on important
issues such as climate change, which cannot be solved without the participation of both
sides.
Very soon you will see a more extensive strategic relationship between the two sides, in
which we will not only seek cooperation on major economic issues, which of course
bring prosperity to both nations, but also close cooperation on all matters from climate
change to anti nuclear proliferation, to combating terrorism, to fighting poverty and
ensuring food security. We hope to see China develop onto the international stage. A
wiser and more confident China will shoulder more responsibilities. At the same time we
look forward to having a cooperative partnership.
Southern Weekend: The US hasn’t acknowledged China’s status as a market economy.
What are the difficulties in recognising this?
Obama: We must note that China’s non-market economic status in the WTO is only
applied in certain areas. In most areas, China is treated as a market economy, which is
why trade between China and the US has grown strongly. My understanding is that the
Chinese government has taken necessary measures with the target of acquiring market
economy status by 2015. Of course the US is interested in working with China on this
target.
Southern Weekend: Do you have a time schedule for solving this issue?
Obama: In fact, there are a number of technical problems in the economics. What we are
doing is to build a framework of Sino-US strategic and economic dialogues. A lot of the
matters here are technical and we hope they can be solved.
Southern Weekend: The volume of trade between US and China is large, but the US has
a lot of restrictions on exporting high-technology items to China. The companies
126
involved in both countries are not happy and this also restricts the balanced development
of trade between the two countries. What is your comment on this?
Obama: First of all we have to realise one very important fact, that the US is the most
open market in the world. That is how China can accumulate such a large trade surplus
with the US. We are reconsidering the embargo on hi-tech products. President Hu and I
have discussed this issue and we think the US exporters may have the chance to export
these products to China. Some of the restrictions have expired and we will have a new
round of inspection on the restrictions. One of the targets of the G20 summit in Pittsburgh
was the need to reach agreement on a more balanced growth model. China as well as
other countries required more domestic consumption and the US is working on having
higher savings and exports. This would help stabilise the global financial system and
increase the standard of living of Chinese people and create more jobs in the US. This is
one part of the more extensive approach that we will adopt. Others include reevaluating
trading agreements and our currency policies. All of this is to pursue broader goals and
more balanced growth.
Southern Weekend: In Tokyo and Shanghai you mentioned twice that the US will not
seek to contain China’s rise. How will this policy take effect?
Obama: We have repeated in the current discussions with China that its stability and
prosperity is in accordance with US national interests. A prosperous China can help
ensure a prosperous and stable Asia. It is just like the stability of South Korea and Japan
are beneficial to world peace and US commercial development. The only one thing that
can stop this positive outcome is a mutual misunderstanding and misjudgement. This is
why we need to not only conduct dialogue on the economics, but also on the security.
The more that the US and China trust each other, the smaller the chance of a
misunderstanding.
• China calls for integrated solution to Somali piracy (19th November)
China on Wednesday called on the international community to work toward an integrated
solution to the piracy menace in Somalia.
"An effective fight against Somali piracy still awaits an integrated solution," China's
deputy permanent representative to the UN, Liu Zhenmin, told a Security Council
meeting.
He noted that China had provided an escort flotilla and other contributions and would
continue to cooperate with international efforts.
It was essential, however, that all efforts in that area comply with international law
applicable to the sea and maritime commerce, and respect the sovereignty and territorial
integrity of littoral States, particularly Somalia, he said.
In that context, it was crucial to support the return of stability in Somalia, even though
political reconciliation had been stagnant, he said.
Liu said that regional states should be supported to help the piracy fight, and regional
initiatives should be encouraged.
127
"We believe that to put an effective end to pirate attacks, the international community
should further expand the maritime escort operations and relevant participating countries
should also improve their coordination in maritime escort operations," he said.
In this regard, China has proposed that the various naval forces deployed in the waters
"define areas of responsibility in order to improve the efficiency of escort operations and
to lower the possibility of pirates' succeeding attempts," he added.
• China wants 'improved' Indo-Pak ties, but denies interference (19th November)
The Chinese foreign ministry on Thursday gave the impression that it was merely
interested in the gradual improvement in relations between India and Pakistan but was
not trying to interfere with the process.
The indication came from “China hopes for a gradual improvement in the relations
between India and Pakistan. As long as it is good for the stability of the region, China
will support the relevant moves,” Qin Gang, the spokesman of the Chinese foreign
ministry,
said
at
the
regulator
press
briefing
on
Thursday.
Qin was replying to a question about what China considered its role to be in the IndiaPakistan relationship. The question emerged from a part in the joint statement issued by
China and United States, which said that the two countries supported improvement of
relations
between
India
and
Pakistan.
“We believe that India and Pakistan are important countries in South Asia” Qin said and
went on to explain that China highly values its own relationship with them.
Qin said there was no talk about the India-US nuclear agreement during the visit of the
US
president
Barack
Obama,
which
ended
on
Wednesday.
“To the best of my knowledge, this issue was not touched upon during two Presidents
discussions,” he said. But he reiterated China’s position saying that the “relevant
countries” are free to enjoy the right for peaceful use of nuclear energy as along as they
adhered
to
the
objective
of
non-proliferation.
He did not give a direct reply to a question on whether China had dispute on the land
boundary with just one country, India. Qin said that the dispute with India was “more
pronounced” but he did not have information about land border disputes with other
countries.
This is interesting because the Chinese media reported on Thursday that China has settled
its land boundary dispute with Vietnam, It had earlier said that the boundary dispute with
Russia
has
been
fully
settled.
Qin said China struck to its principal on “common but differentiated responsibilities”
among the rich and developing countries on the issue of emissions and climate change.
128
Beijing was involved in fruitful discussions with the United States for resolving the
climate problem, but it was not likely to deviate from its stand on the issue, he said.
• China, Sudan agree on agriculture cooperation (19th November)
China and Sudan have agreed to further enhance cooperation on agriculture during the
visit to Khartoum by Zhou Yongkang, a senior leader of the Communist Party of China
(CPC), said sources with the International Department of the CPC Central Committee on
Thursday.
Zhou, a member of the Standing Committee of the CPC Central Committee's Political
Bureau, paid a three-day official goodwill visit to Khartoum from Monday to Wednesday
at the invitation of Sudan's ruling National Congress Party (NCP).
During his visit, Zhou and Sudanese President Omar al-Bashir held talks and agreed to
further oil cooperation and tap potentials for cooperation in the agricultural field, the
sources said.
"Fourteen years ago, then Chinese President Jiang Zemin and youmade the strategic
decision to start China-Sudan oil cooperation, and our bilateral pragmatic cooperation
had since entered a stage of fast development," Zhou told al-Bashir.
"In 2007, Chinese President Hu Jintao visited Sudan and the two heads of state reached
consensus on the further promotion of bilateral ties, which injected more energy into
China-Sudan relations," Zhou noted.
He said that in addition to oil cooperation, China is working on a pilot project on
agricultural cooperation between the two countries.
"China and Sudan, both developing countries, are facing many similar tasks and
challenges ahead, and share broad common interests," said Zhou, urging both sides to
keep exploring new ways of cooperation in a bid to achieve common development.
Zhou also called on Sudan to fully implement the Comprehensive Peace Agreement
(CPA), which was signed in 2005 to end a two-decade war between north and south
Sudan, for the purpose of solidarity, stability and development in the country.
Al-Bashir, also the NCP president, described China as Sudan's friend and partner,
stressing that the two countries enjoy sound development of bilateral ties and are
expected to conduct cooperation in a wider range of areas.
On Tuesday, Zhou and al-Bashir also attended a ceremony for the first BeijingKhartoum direct flight, and unveiled the first Confucius Institute in Sudan, to be
established in Khartoum University.
•
China, Vietnam make border progress (19th November)
129
China and Vietnam signed a package of agreements on the demarcation of their 1,300-km
land boundary yesterday.
Vice-Foreign Minister Wu Dawei and his Vietnamese counterpart Ho Xuan Son inked
the deals on behalf of their governments. Foreign Minister Yang Jiechi attended the
ceremony.
The two vice-foreign ministers said the countries will try to solve the issue of the correct
location of their border at sea through diplomatic negotiations.
They also agreed to jointly maintain peace and stability in the South China Sea.
• Chinese FM visits Japan (19th November)
Foreign Minister Yang Jiechi (L) meets with his Japanese counterpart Katsuya Okada in
Tokyo on Nov. 19, 2009.
• Common interests push bilateral relations high (19th November)
Washington and Beijing are more likely than ever to become equal partners, as they
realized they share many common interests, experts said.
As United States President Barack Obama wrapped up his first visit to China yesterday,
commentators said the two countries would not be this close if it were not for so many
common global challenges.
In his meeting with Premier Wen Jiabao yesterday, Obama said the US has realized
Beijing's concern over Washington's export control.
He said the US is willing to take measures to increase its hi-tech exports to China.
Wen said China wants to balance its trade relationship with the US and does not seek a
surplus. Both of them said they oppose trade protectionism.
A day earlier, President Hu Jintao said after holding a morning of talks with Obama that
both countries should establish a partnership to face global challenges.
The joint statement that Hu and Obama issued was the broadest of its kind in 30 years of
formal relations, the Associated Press said.
David Shambaugh, a senior visiting scholar at the Chinese Academy of Social Sciences,
said the joint statement is "an extremely positive document".
"If all of the agreements and goals identified in the joint statement are implemented, it
will take Sino-US relations into a totally new and positive era," said Shambaugh, a China
expert originally from George Washington University.
Some Chinese experts said the two nations have realized they share many common
interests.
"Interactions between the two countries are always based on common interests since Mao
Zedong's time (when they started to re-approach each other in the 1970s)," said Zhou Qi,
an expert on US studies at the Chinese Academy of Social Sciences.
The threat from the former Soviet Union pushed the two countries together during the
Cold War. But when it was over, disputes on some issues including human rights
emerged in the early 1990s, she noted.
"Now is a time when mutual interests have outweighed differences," Zhou said.
"Otherwise how can two such distinctive countries in history, culture and tradition be so
close."
Obama is in Asia calling for help when the US is in trouble, said Pang Zhongying, an
international affairs expert at Beijing-based Renmin University of China.
130
The economic crisis and the wars in Iraq and Afghanistan have pulled Washington into
trouble. The country also has to face other global challenges such as global warming.
"Obama is telling Asian countries that 'we are on the same boat, so helping the US would
be helping yourselves'," Pang said. "Obama is telling China and other Asian countries to
share the burden."
Differences between the two have become secondary to common interests, but it doesn't
mean disparities never existed.
Rear Admiral Yang Yi, a senior expert at the Institute of Strategic Studies of the National
Defense University, said military ties have lagged far behind the substantial progress
achieved in the political and economic domains, although Hu and Obama put planned
high-level military exchanges into the joint statement.
"Beijing is actually telling the US to be cautious about its arms sales to Taiwan," Yang
said.
Washington needs to stop arms sales to Taiwan or its high-level military exchange with
Beijing might be terminated, he added.
"A uni-polar world, which the US has enjoyed since the end of the Cold War, has come
to an end," Pang stressed. "A new era in which China and the US need to face global
challenges together has just started."
• Great Wall signifies 'sweep of history', US president claims (19th November)
Standing alone in the chilly wind in front of the winding Great Wall with hands jammed
into his pockets, US President Barack Obama enjoyed a moment of peace after wrapping
up his four-day tightly scheduled visit to China yesterday afternoon.
"It's magical. It reminds you of the sweep of history," Obama said to the press after he
walked back to the crowd. He then went to the sidewall to enjoy more of the view of the
Chinese architectural wonder.
"It gives you a good perspective that a lot of day-to-day things we worry about don't
matter so much Our time here on Earth is not that long. We better make the best of it,"
Obama said.
Dressed in a black winter jacket, Obama took about 20 minutes to quickly tour the
Badaling Great Wall, the most well-preserved section of the wall built during the Ming
Dynasty (1368-1644).
After a 50-minute visit to the Forbidden City on Tuesday, the historic former home of
China's emperors, Obama visited the Great Wall, his second sightseeing tour during his
visit to China.
Due to his limited time, Obama skipped the plan to climb to Badaling's Tower Four and
instead stopped at Tower Three.
"If Obama reaches Tower Four, he will become the first US president to scale that high,"
Zhang Min, the media official from the Badaling Great Wall tourism administration, told
China Daily yesterday.
Regarded as the one of the world's greatest wonders, almost all the visiting foreign
leaders to Beijing have climbed the Great Wall to experience the historic Chinese
civilization, including former US president Richard Nixon who visited the same spot in
1972 during his historic trip to China.
131
On a similar cold and clear day, Nixon said at the same steep: "My hope is that in the
future, perhaps as a result of the beginning that we have made on this journey, that many,
many Americans ... will have an opportunity to come here."
Nixon said he hoped "that they will think back as I think back to the history of this great
people, and that they will have an opportunity, as we have had an opportunity, to know
the Chinese people better."
After 37 years, a "positive, cooperative and comprehensive relationship" is developing
between the first and the third largest economies in the world, Obama said at the recent
G20 summit.
Satisfied with the first China trip, Obama said that he wished he could have stayed longer
at the Great Wall.
"I am inspired by the majesty of the Great Wall, and am grateful for the warmth of the
Chinese people," Obama wrote on the official guestbook at the site before leaving for the
Republic of Korea, the last stop for his eight-day Asia tour.
Accompanied by the Chinese ambassador to the US, Zhou Wenzhong, and US
ambassador to China, Jon Huntsman, Obama became the 460th foreign leader to visit the
ancient fortification since the Badaling section was open to visitors in 1954, according to
the local tourism administration.
• China welcomes U.S. envoy's upcoming visit to Pyongyang (19th November)
China welcomes and supports the dialogues and contacts between Washington and
Pyongyang, said Foreign Ministry spokesman Qin Gang here on Thursday.
He was responding to a question over the latest announcement of U.S. President
Barack Obama on sending special envoy Stephen Bosworth to Pyongyang next month for
bilateral talks.
"We hope their dialogues and contacts will help resume the six-party talks at an early
date, facilitate the denuclearization process of the Korean Peninsula, and safeguard peace
and stability on the peninsula and in the region," Qin said.
He expressed belief that the efforts were made within the framework of the six-party
talks and formed part of the talks process. China was in close contacts with parties
concerned on the arrangement of future six-party talks, he added.
At a joint news conference in Seoul with President Lee Myung-bak of the Republic of
Korea (ROK), Obama said his nuclear envoy Stephen Bosworth will go to Pyongyang on
Dec. 8 to start bilateral talks with the Democratic People's Republic of Korea (DPRK).
The DPRK, who has boycotted the six-party talks since April, has called for direct
talks with the United States to find a solution to the denuclearization of the Korean
Peninsula.
The United States has agreed to the talks but stressed the talks should lead to the
resumption of six-party talks and be guided by the six-party mechanism, which also
involves China, Japan, the ROK and Russia.
132
•
China seriously concerned over Israel's housing plan in East Jerusalem (19th
November)
China on Thursday voiced serious concern over the recent plan of Israel to build housing
units in East Jerusalem.
The decision would set new obstacles for the Middle East peace process, said Foreign
Ministry spokesman Qin Gang, adding China was seriously concerned and opposed to it.
He urged the Israeli side to take concrete measures to resume the Palestinian-Israeli
mutual trust, and create favorable conditions for resumed talks between the two sides.
Israel gave green light on Tuesday to a plan to build some 900 new housing units in the
Jerusalem neighborhood of Gilo, located beyond the Green Line, which drew widespread
international criticism.
•
Ambassador: U.S.-China relations more focused on global issues (20th November)
China-U.S. relationship that by large was entering a period where our focus would be
more and more on global issues, said U.S. Ambassador to China Jon Huntsman on
Friday.
Huntsman made the remarks at the Forum for America/China Exchange at Stanford
(FACES) in Peking University, a top university in China.
"Obama arrived and found what he had hoped for," he said relating to the U.S.
President's just concluded China visit after reviewing the bilateral link chronicle.
U.S. and China could strengthen cooperation in areas including military, people to
people exchanges, climate change, clean energy and economic crisis, Huntsman told the
delegates attending the forum.
He said the U.S.-China relationship was so "large and complicated" that managers of
the relations should "take the areas of commonality" and "realize and speak open" about
the disagreements.
Huntsman, who once lived in Taiwan and could speak Chinese called Chinese the
"21st century language", saying diplomacy is ineffective without "investing a generation
of professionals willing to invest their careers in turn in language, culture, regional
studies."
133
FACES, a forum held in Beijing from Nov.15-20, gathered more than forty students
from China and the U.S to discuss political, social, economic and cultural issues.
• President Hu: China hopes to advance relations with ROK (20th November)
Chinese President Hu Jintao said on Friday that China hopes to advance the strategic
cooperative partnership with the Republic of Korea (ROK).
"We will work with the ROK to increase friendly exchanges at various levels and
enhance pragmatic cooperation in various sectors," Hu told Kim Hyong-o, speaker of the
ROK National Assembly.
Hailing the smooth development of China-ROK ties in recent years, Hu said the
leaders of the two nations had maintained frequent contacts, exchanged views often and
reached broad consensus on important issues.
"This gives strong impetus to the growth of bilateral relations," Hu noted.
The two nations had also witnessed fruitful cooperation in economy, trade,
environmental protection and energy, and made active exchanges between parliaments,
political parties and people, he said.
"Our coordination in international and regional affairs are close," he added.
Both China and the ROK were faced with important tasks to promote economic
recovery, improve people's life and safeguard peace and stability, Hu said, noting that to
keep the stable and healthy growth of bilateral ties would not only benefit the two nations
and the two peoples, but also help promote regional and world peace and development.
The government also supports the legislative organs from both countries to expand
exchanges and cooperation, the president said, expressing his hope that the ROK
parliamentary members would make efforts to promote China-ROK friendship.
Echoing Hu, Kim spoke highly of China's measures to cope with the international
financial crisis and to maintain stable and rapid economic growth.
The ROK-China relations were at its best period in history, and the ROK National
Assembly would work with the National People's Congress (NPC) of China to contribute
to the further growth of ties between the two nations, Kim noted.
Kim is visiting China from Nov. 18 to 22 at the invitation of Wu Bangguo, chairman of
the NPC Standing Committee.
• China, Japan vow to further improve bilateral ties (20th November)
Visiting Chinese Foreign Minister Yang Jiechi met with Japanese Prime Minister Yukio
Hatoyama Friday on improvement of bilateral ties under the new government of the
Democratic Party of Japan (DPJ).
134
Yang said the leaders of the two countries have met under several circumstances to
reach important consensus on deepening China-Japan strategic mutually beneficial
relations. The political mutual trust has been improved and communication in all areas is
progressing. China will seize the current opportunities to further bilateral cooperation and
high-level visits, expand cooperation in Asian and international affairs.
Yang also expressed that China is willing to facilitate the building of China-JapanSouth Korea Free Trade Zone and an East Asia community. "It's a common goal of
countries in the region, including China and Japan to build the East Asia Community. We
should work together to improve peace, development and prosperity of Asia," he said.
Hatoyama said he had many chances to meet Chinese leaders Hu Jintao and Wen Jiabao
since he became the prime minister in September and believed the frequent meetings are
important to the development of bilateral ties. "I hope we can keep the momentum and I
am looking forward to participating in the Shanghai Expo next year."
"I want to build win-win relationships based on a spirit of fraternity and expand them
from between Japan and China to the Asian region and the world," Hatoyama said.
"Doing so, I believe, will lead to the building of an East Asian community."
Yang also met with DPJ Secretary General Ichiro Ozawa and chiefs of other Japanese
political parties on Thursday.
Chinese Ambassador to Japan Cui Tiankai was present during the meetings.
Yang started his four-day visit to Japan from Thursday. It is the first visit of Yang
since Japan saw a change of government in September.
• Chinese officials rip Obama interview from newspaper (20th November)
Many copies of the Southern Weekend were missing the page carrying Obama's
exclusive interview, even though it didn't cover anything controversial.
Even after he left Beijing, President Obama apparently fell afoul of the Chinese censors.
An exclusive interview he gave to Southern Weekend -- a weekly supplement to the
Southern Metropolis Daily newspaper -- was published in Thursday's editions, but the
page that carried the interview was removed from many copies. And the official online
edition
of
the
newspaper
had
no
coverage
of
the
event.
In the short interview, Obama did not address any controversial issues, answering instead
bland questions about China's economic development, his love for basketball and trade
relations.
The Southern Metropolis was chosen by the White House for the presidential interview
because of its reputation for being the hardest-hitting newspaper in China. The
newspaper, published in Guangzhou, was not available on most newsstands Thursday.
• India bristles at closer Sino-US ties (20th November)
The Indian government and media may have been a little too sensitive toward the newly
signed China-US joint statement by saying they do not want a third-country role in the
India-Pakistan
relationship,
Chinese
analysts
said
on
Thursday.
The US appears to have accepted the idea that China could play an important role in the
135
task of improving the relationship between India and Pakistan, The Times of India
reported
Tuesday.
New Delhi said Wednesday that it is "committed to resolving all outstanding issues with
Pakistan through a peaceful bilateral dialogue," as US President Barack Obama wrapped
up his four-day visit to China with a joint statement declaring a closer Sino-US
relationship.
"This is a rare occasion when a US president has acknowledged that Beijing has a role to
play in the India-Pakistan relationship. The move, if serious, runs counter to predictions
of US foreign policy experts that the US would not acquiesce in a future Chinese
hegemony
in
the
region,"
the
paper
said.
"A third-country role cannot be envisaged nor is it necessary," India's Ministry of
External Affairs said in a statement on its website Wednesday, in response to the USChina Joint Statement. "We also believe that a meaningful dialogue with Pakistan can
take place only in an environment free from terror or the threat of terror."
The China-US statement said the two nations welcomed efforts conducive to peace,
stability and development in South Asia, among other major agreements on global
issues, such as economic recovery, climate change and nuclear non-proliferation.
"They (China and the US) support the efforts of Afghanistan and Pakistan to fight
terrorism … and support the improvement and growth of relations between India and
Pakistan,"
the
statement
said.
Washington moved quickly Wednesday to ease Indian worries that US-Indian ties could
suffer as the Obama administration pursues closer cooperation with China, and warned
against
"too
much
reading
into
statements."
The US desire for closer contact with China does not come at the expense of strong ties
with India, Undersecretary of State William Burns told an audience at the Carnegie
Endowment
for
International
Peace
think
tank,
the
AP
reported.
Few relationships will matter more in the coming years than the one between the US and
India, and India's already large role in Asia will only grow, Burns said.
"That doesn't mean that we will always agree, because we won't. That doesn't mean that
we can always avoid mutual suspicions and misunderstandings, because we can't," Burns
was quoted as saying. But, he said, the two countries can build an even stronger
partnership on the solid foundation they've created in recent years, according to the AP.
Indian Prime Minister Manmohan Singh is due in Washington next week for a state visit.
• Chinese vice premier meets Syrian PM on bilateral cooperation (20th November)
Chinese Vice Premier Hui Liangyu expressed hope to promote bilateral cooperation in
economy, trade and agriculture with Syria during his meeting with Syrian Prime Minister
136
Mohammed
Naji
Otri
on
Thursday.
Hui said the bilateral relations between China and Syria enjoyed sound development
since the two countries established diplomatic ties more than five decades ago.
He said China hopes to deepen the mutual political trust with Syria and strengthen the
practical bilateral collaborations, especially in the fields of economy, trade and
agriculture,
to
benefit
the
peoples
of
both
countries.
Hui also showed appreciation of Syrian prime minister's efforts in improving the friendly
relationship between the two countries, and thanked Syrian government and people for
their
hospitality.
For his part, Mohammed Naji Otri called for strengthening bilateral cooperation at all
levels
and
stepping
up
development
in
both
Syria
and
China.
He appreciated the friendship and political principles the two countries have adopted in
supporting each other for decades, saying that Syria hopes, along with the Chinese side,
to keep exploring new methods and domains in bilateral cooperation and further promote
economic,
trade
and
cultural
exchanges.
The Chinese vice premier arrived in Damascus on Wednesday afternoon for a three-day
official visit to Syria at the invitation of Syrian Deputy Prime Minister Abdullah alDardari.
Syria and China inked Wednesday an agreement on economic and technical cooperation,
in which China offers to grant Syria a financial assistance of 20 million yuan (2.93
million U.S. dollars).
China urges Japan to be responsible in handling forced laborer issue (21st
November)
China on Friday urged Japan to be responsible for history in handling issues concerning
former Chinese nationals who were forced to work as laborers in Japan during World
War
II.
•
Japan's Sendai High Court on Friday rejected an appeal for damages filed by former
Chinese laborers, saying that individual rights of Chinese nationals for war reparations
were
discarded
under
the
1972
Japan-China
joint
statement.
Chinese Foreign Ministry spokesman Qin Gang said the Chinese government's
declaration in the Sino-Japanese Joint Statement on waiving the right for war
compensations from Japan was a political decision made to help the two peoples live in
amity.
Qing said China strongly opposed the "arbitrary" interpretation by the Japanese court on
Chinese
government's
waiving
its
right
to
war
reparations.
137
"Such an interpretation is illegal and invalid," Qin said when asked to comment on the
verdict.
Qin pointed out that Japan's actions to force and enslave the Chinese during World War II
were serious militaristic crimes as well as a realistic and grave human rights issue that
has
not
yet
been
solved
properly.
"We ask the Japanese government to take a responsible attitude toward the history and
properly handle this issue," said Qin.
• Chinese premier congratulates EU top leaders elected (21st November)
Chinese Premier Wen Jiabao on Friday congratulated EU's top leaders elected on
Thursday, vowing to further boost China-EU all-round strategic partnership.
Wen made the remarks in his meeting with a group of EU diplomats including former
French Prime Minister Jean-Pierre Raffarin and Hungary's ex-Prime Minister Peter
Medgyessy, who were here to attend a China-EU forum.
The Belgian prime minister was unanimously elected on Thursday as the first full-time
EU president and Britain's EU Trade Commissioner Catherine Ashton as EU foreign
policy chief.
"As a strategic partner of the EU, China congratulates the leaders elected and feels glad
for that," Wen said.
Calling EU as an important pole of the world, Wen said the EU integration would help
the 27-nation bloc to play greater role in international affairs.
He called for courage and insight of political figures of both sides, as well as support
from various circles of the society to deepen China-EU relations.
"The Chinese government is ready to cement trust and deepen cooperation with EU to
promote bilateral all-round strategic partnership," he added.
Some of the EU representatives told Wen both the EU and China shoulder great
responsibilities in the world globalization. The two sides should not only properly settle
issues in bilateral ties but also jointly respond to major global challenges such as climate
change.
• Chinese Remedy for South Asia (21st November)
US President Barack Obama’s visit to China has received a substantial amount of
criticism. The trip has elicited deep concern in India, a strategic US ally.
The concern draws primarily from a joint statement issued in Beijing after a meeting
between Obama and his Chinese counterpart Hu Jintao. A joint US-Chinese offer to
138
“strengthen communication, dialogue and cooperation”—between Pakistan and India—
for peace and stability has caused upset.
Possible Chinese mediation in resolving any standing disputes between the two nucleararmed neighbours is perceived as external interference in India’s bilateral relations. It is
in opposition to India’s long-standing policy dealings with Pakistan. Kashmir, being a
case in point, New Delhi has ever since partition firmly rejected all external mediation
attempts.
While China’s significance is obviously high on the US agenda, the recent trip has
proved quite disturbing for India. It is an unspoken acknowledgement of China’s
emergence on the superpower horizon. The fact that Obama involved Beijing to smooth
strained relations between India and Pakistan is doubly irksome for Delhi. An issue that
is likely to dominate Indian Prime Minister Manmohan Singh’s forthcoming visit to
Washington.
Indo-Sino economic ties may have seen robust growth but bilateral relations remain
strained on the political front. Preceding even the breakout of a small border war in
1962, Indian distrust stems from China’s territorial claims, its closeness to Pakistan, its
role in Tibet and alleged support for Maoist rebels. A recent rise in diplomatic tensions
followed India’s refusal to entertain Chinese demands to disallow the Tibetan spiritual
leader, the Dalai Lama, to visit the Indian state of Arunachal Pradesh.
While Indian indignation at this development is understandable in view of its strained
relations with China, it is important to assess things in context. US attempts to bring in
China may also be for influencing Pakistan for a speedier rapprochement with India.
The resumption of the stalled composite dialogue has failed due to what New Delhi calls
a failure by Islamabad to prosecute perpetrators of Mumbai attacks. The process of
dialogue has thus been made conditional by India, and opposed by Pakistan. This is
unfortunate since terrorists, especially those whose aim is to sabotage peace between the
two states for their own vested interests, are likely to use this card.
As for a resolution on Kashmir, fresh efforts are long overdue. Given the tendency to fall
into a blame game, the two neighbours would probably benefit from outside mediation—
necessarily, not China—for a judicious resolution in accordance with what the people of
the troubled region want.
China and India need to move beyond past grievances and forge a stronger relationship,
one that befits Asia’s economic giants.
• New EU chief good for ties with China (21st November)
The appointment of Belgian Prime Minister Herman Van Rompuy as European Union
(EU) president will help its member nations agree on a unified China policy and reduce
the risk of estrangement in relations, diplomats and experts said on Friday.
EU leaders handed the block's new top job to Van Rompuy on Thursday (Friday, Beijing
time). They also appointed trade commissioner Catherine Ashton, of Britain, as the EU's
new foreign policy chief.
The two top jobs were created on the basis of EU reform document, the Lisbon Treaty,
that takes effect from Dec 1.
Francois Godement, director and professor of Asia Center, affiliated to Paris-based
Sciences Po, said a stable EU presidency would help Europe stabilize its ever-fluctuating
relations with China.
139
Ties between China and some European countries were estranged last year after some
leaders' supported separatist elements in the Tibet autonomous region and called for
boycotting the Beijing Olympic Games. Some EU leaders also met the Dalai Lama.
"Speaking of EU-China relations, what matters most is the top-down political attention
to the problem," Godement said on the sidelines of a forum on China-EU relations that
concluded in Beijing on Friday.
The implementation of the Lisbon Treaty will make coordination between China and
the EU more direct and effective, especially at times when the two sides face problems in
their relations, said Yang Jiemian, president of Shanghai Institute for International
Studies.
A more coordinated EU policy on China will certainly reduce the risk of a
deteriorating relationship, caused by certain countries' unfriendly moves, he said.
Financial Times editor James Kynge agreed. "I think one big frustration in China's
relationship with Europe has been that it's never clear in Europe who is the boss," he said
at the forum.
"Now that the EU has a president, maybe it will be easier for China to engage ... At
least we have one person who is supposed to speak for the whole of the EU."
Counselor of the Belgian embassy in Beijing Bart Pennewaert, however, said it was
hard to guess whether a China policy was the most pressing task for Van Rompuy. The
economy seems to be most important for him.
But based on Van Rompuy's meeting with Vice-President Xi Jinping, who visited
Belgium last month, the 62-year-old EU president is clearly supportive of the one-China
policy and does not back any separatist activities against China, experts said.
Van Rompuy's appointment came on the heels of U.S. President Barack Obama's
China visit. The importance Obama attaches to China - and vice-versa - has made some
Europeans wonder whether the EU's role in global affairs would be curtailed.
But Jean-Pierre Raffarin, former French prime minister, said in Beijing: "The ChinaEU relationship is no less important than China-U.S. ties ... The EU-China Summit will
prove the importance of the China-EU relations."
The 12th China-EU Summit will be held in Nanjing, capital of Jiangsu province, on
Nov 30. Swedish Prime Minister Fredrik Reinfeldt will lead the EU delegation and meet
with Premier Wen Jiabao.
"The EU and China have reached a consensus on building a multi-polar, rather than a
uni-polar, world," Raffarin said. "We both agree that there is no G1, G2 or G3 in the
world, but it's a multi-polar world."
Gustaaf Geeraerts, director of the Brussels Institute of Contemporary China Studies,
told the forum that the growing momentum of Beijing's synergy with Washington had
given rise to speculation over a new trans-Pacific axis.
The Sino-EU partnership may not be strategic, but it has great potential, he said, and to
strengthen ties, China and the EU have to agree on the areas they want to build their
partnership on.
Eberhard Sandschineider, director of the Research Institute of German Council on
Foreign Relations, said: "The strategic significance of EU-China relations continues to be
in need of constant endeavors of re-balancing."
•
China-Africa co-op mutual beneficial: expert (21st November)
140
Yao Jingyuan, chief economist with China's National Bureau of Statistics, said Saturday
that cooperation between China and Africa is mutual beneficial and would lead to winwin results.
China has made great achievements in its industrial sector, urbanization and
globalization since its reform and opening-up initiative three decades ago, Yao said at the
three-day China Africa Industrial Forum starting Saturday in Beijing.
China's rapid economic growth also means plenty of business opportunities to Africa,
he said.
The world's third-largest economy expanded 7.7 percent year on year in the first three
quarters, largely due to the massive stimulus package unveiled in November 2008.
The forum can further boost bilateral investment and business cooperation in the
industrial sector and help Chinese and African enterprises to better cope with the impact
of the global economic slowdown, said Gao Zongyin, head of the China Industrial
Cooperation Association.
David Oppon-Kusi, member of the Parliament of Ghana, said that his country hopes to
cooperate with China in agriculture, transportation, real estate and other areas and firms
in Ghana hopes to share China's successful development experience.
Figures from China's Ministry of Commerce indicated that trade between China and
Africa grew rapidly with an annual increase rate of 30 percent in the past eight years. In
2008, two-way trade was worth more than 100 billion U.S. dollars.
• China urged to increase UN role (21st November)
China pledged on Friday to continue its support of United Nations (UN) peacekeeping
operations, but a high-ranking army official said the missions will also need major
reforms to meet new challenges.
General Chen Bingde, chief of the General Staff of Chinese Armed Forces, said UN
peacekeeping operations face difficulties in policymaking, financial guarantees and
planning and management when he met with Alain Le Roy, UN under-secretary-general
for peacekeeping operations.
Chen said during their meeting in Beijing reforms of peacekeeping operations must be
not only "active and creative", but "stick to basic principles". He did not elaborate.
"Meanwhile, (reform) should also attach importance to cooperation with (local) regional
organizations," he said. "The ultimate goal should be to improve management and
efficiency of peacekeeping operations."
Chen stressed China would do as it "had always been doing" and actively participate in
UN peacekeeping operations and "work with the international community to contribute to
preserving world peace and security".
Le Roy encouraged China to increase its support for peacekeeping initiatives.
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"The job of being a peacekeeper has evolved drastically in the last decade," Le Roy said.
"We have to adapt the way we operate to the changing environment and complexity of
our new task."
Le Roy was in Beijing to attend a symposium hosted by the Chinese Ministry of National
Defense called to discuss ways to improve coordination and logistical support for global
peacekeeping efforts.
The number of UN peacekeepers has grown from 20,000 in 2000 to 115,000 today. Some
26,000 are in Sudan's Darfur region.
As recently as 10 years ago, UN peacekeepers focused on enforcing ceasefires between
standing armies. Today, they perform a wide range of tasks - including election
monitoring, protecting civilians and building local institutions.
China has sent more than 14,000 peacekeepers, mostly military observers, engineers and
medics, to UN-led operations in the past 20 years, according to the Defense Ministry.
Economic front
• IMF Chief Says Stronger Chinese Yuan Needed (15th November)
The chief of the International Monetary Fund added to pressure on Beijing to let its
currency rise, saying Monday that a stronger yuan and more Chinese consumer spending
are needed to help ease global economic imbalances and assure healthy growth.
The comments by IMF Managing Director Dominique Strauss-Kahn came as President
Barack Obama began a visit to China amid strains over trade and currency. U.S.
manufacturers complain that Beijing gives its exporters an unfair price advantage by
keeping the yuan undervalued, but Obama is expected to go easy on the issue.
"A stronger currency is part of the package of necessary reforms," Strauss-Kahn said in a
speech at a finance conference in Beijing.
Strauss-Kahn said China has started to make important reforms needed to raise domestic
demand, such as increase spending on health care and pensions to free families to spend
more on consumer goods.
"Allowing the renminbi (Chinese yuan) and other Asian currencies to rise would help
increase the purchasing power of households, raise the labor share of income and provide
the right incentives to reorient investment," Strauss-Kahn said, according to a text of his
speech. "Higher Chinese domestic demand, along with higher U.S. saving, will help
rebalance world demand and assure a healthier global economy for us all."
Beijing broke the yuan's direct link with the dollar in mid-2005 and allowed it to rise by
more than 20 percent against the U.S. currency over the next three years. But that
increase stopped in late 2008 as Beijing tried to help its exporters stay competitive amid
plunging demand. The yuan has held steady against the dollar since then.
A Chinese Commerce Ministry spokesman speaking at a separate news briefing said
Chinese exporters don't see trade improving and need a stable exchange rate.
"If we only ask other countries to appreciate their currencies while the dollar is declining,
it is not good for the world economic recovery," spokesman Yao Jian said. Yao insisted
the impact of the exchange rate on China's trade surplus was "very small."
On the global economy, Strauss-Kahn warned that the nascent recovery is uneven and
said governments should avoid withdrawing stimulus measures too soon.
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"The biggest risk is a premature withdrawal of policy stimulus," he said. "While it is
prudent to plan for so-called 'exit strategies,' policy makers should keep supportive
measures in place until a recovery is firmly established, and particularly until conditions
are in place for unemployment to decline."
Strauss-Kahn also said he expect the U.S. dollar to remain the world's reserve currency
despite concerns about the current system. China and Russia have expressed concern
about the dollar's stability and called for creation of an alternative currency, possibly one
managed by the IMF.
"My own view is that the current international monetary system, despite its problems, is
still working reasonably well," Strauss-Kahn said. "I expect the dollar to remain the
principal reserve currency for some time."
• Hu expounds China's views on sustainable development (15th November)
Chinese President Hu Jintao and other leaders of the Asia-Pacific Economic Cooperation
(APEC) member economies met for the second and final day on Sunday for their annual
meeting, focusing on "sustaining growth."
The theme for this year's APEC meeting is "Sustaining Growth, Connecting the
Region," reflecting APEC's continuing efforts to facilitate trade and investment in the
region.
During their two-day meeting, the APEC leaders focused on countering international
financial crisis, climate change, opposing trade protectionism, supporting multilateral
trading regime, furthering regional economic integration and the APEC's future.
The Chinese president, speaking at second-day session on Sunday, expounded China's
view on promoting sustainable development.
In his remarks, Hu said China needs an international development environment
featuring peace, stability, harmony and cooperation.
"China is ready to contribute its share to the building of suchan environment. China
will work with the rest of the international community to meet the challenges together
and seek inclusive, sustainable and balanced economic growth," Hu told leaders of other
APEC member economies.
MAKING FOUR-POINT PROPOSAL ON SUSTAINABLE DEVELOPMENT
At present, the profound impact of the international financial crisis still persists and the
foundation is not yet solid for the world economic upturn, Hu said.
Trade and investment protectionism of various forms has noticeably risen. the intrinsic
problems in the world economic system are yet to be solved and the effort to fully restore
world economic growth is beset with uncertainties and destabilizing factors, he added.
In addition, the Doha Round negotiations have been fraught with difficulties and twists
and turns, and global issues such as climate change, food security, energy and resource
security, public health security and major natural disasters have become more
pronounced. "These are all daunting challenges to the full recovery and long-term growth
of the world economy, including in the Asia-Pacific region," he said.
At this critical juncture, "we should all the more get united, follow the principle of
openness, cooperation and mutual benefit, strengthen coordination and work together to
secure the momentum of world economic recovery and promote balanced and orderly
economic growth," said the Chinese president.
Hu also made the following four-point proposal on sustainable development:
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-- Make unremitting efforts to fully restore world economic growth;
-- Take a long-term perspective and promote sustainable growth;
-- Follow a holistic approach and advocate inclusive growth;
-- And engage in comprehensive coordination and pursue balanced growth.
• A reflection on China enthusiasm at APEC meetings (15th November)
As Chinese reporters covering this year's APEC meetings in Singapore, we find here
another oft used language barring English, which is mandarin Chinese. True, there is a
large population of Chinese descendants in Singapore, but this year's meeting also saw a
continued rise of China on the world economic arena, and naturally, learning to talk in
Chinese becomes a fancy thing to do.
Not a single speech is delivered at the APEC CEO Summit without the mentioning of
China, not a single business heavyweight turns a blind eye to China's rise and potentials.
This enthusiasm for China is noticeable from statesmen, businessmen and academics
alike when they reexamined the massive stimulus package put in place in China, when
they talked about a swift and strong rebound in China, and when they contemplated
China's role in the region as well as the world in the future.
When Chinese President Hu Jintao detailed to a galaxy of who's who about China's
contribution to the world economic recovery since the culmination of the global
economic crisis last year, very few doubted.
An economically vibrant China is a catalyst for growth in Asia, said Singapore
President S. R. Nathan at a welcoming dinner for President Hu. A strong and prosperous
China can be a source of strength for all nations, asserted U.S. President Barack Obama
during his presidency's maiden trip to Asia.
Being the third largest economy in the world, a stronger China has taken its fair share
for the world economic turnaround; but at the same time, we must also acknowledge the
fact that China is still the biggest developing country, and the scale and the complexity of
the problems China encounters during its development is hardly seen in the world.
This long march for prosperity in China can never be done out of a mere enthusiasm,
but hard work and mutual trust. President Hu put forward a message to the world: China
cannot achieve development in isolation from the world, and the world needs China for
development. A more developed China will bring more opportunities and make a greater
contribution to the world.
Enthusiasm can die out, but the expectations on and challenges for China will not, at
least for quite a long time.
• APEC leaders issue Singapore declaration (15th November)
Leaders of the 21-member Asia-Pacific Economic Cooperation (APEC) issued a joint
declaration Sunday -- the final day of their annual summit. The declaration is widely
expected to show regional leaders' political commitment to support fiscal stimulus, free
and open trade, economic structural reforms, efforts to tackle climate change, among
others.
•
APEC leaders chart roadmap for post-crisis landscape (15th November)
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Leaders of the 21-member Asia-Pacific Economic Cooperation wrapped up their two-day
annual meeting here by issuing a declaration, pledging to pursue a new growth pattern in
the post-crisis era.
"We cannot go back to 'growth as usual' or 'trade as usual'," the leaders said in the
declaration, noting "the post-crisis landscape will be different."
The leaders said they will pursue growth that is "balanced, inclusive, and sustainable,"
vowing to put in place next year "a comprehensive long-term growth strategy."
"Our statement expresses our determination to implement a long-term growth
strategy," Lee Hsien Loong, prime minister of Singapore, told a news briefing after the
summit.
The APEC represents about 55 percent of the world's economic output, 45 percent of
global trade and 40 percent of the world's population.
RESHAPE GROWTH PATTERN
The APEC leaders' meeting of this year was convened at a time when the world
economy began to recover, but the outlook is uncertain.
Economists said that the worst is over, but the recovery is weak mainly due to still
dampened demand in the region. A relapse or another dip is possible, they warned.
The main engine of demand in the world over the last dozen years had been consumers
in the U.S., said Stephen Roach, chairman of the Morgan Stanley Asia.
"But now you have to forget about that," he said, noting that the consumption model in
the U.S. is not on a sustainable basis.
"We will pursue growth which is balanced, inclusive and sustainable, supported by
innovation and a knowledge-based economy, ensure a durable recovery," the leaders said
in their declaration.
On balanced growth, the leaders said that strong and sustained economic growth will
require structural reforms to gradually unwind global imbalances.
The leaders pledged to ensure that their fiscal, monetary, trade and structural policies
are consistent with a more sustainable and balanced trajectory of growth.
They also promised to strengthen the environment for private enterprises, investment
and innovation.
Inclusive growth is an approach that is anti-protectionist, fueled by market-driven
growth and facilitated by government.
Ultimately, inclusive growth empowers individuals so that they are better able to reap
the benefits of globalization and to withstand future economic shocks.
"To achieve inclusive growth, we must broaden access to economic opportunities and
build the resilience of the most vulnerable against economic shocks," said the APEC
leaders.
Sustainable growth mainly focuses on environmental issues. "Future growth must be
compatible with global efforts to protect the environment and mitigate climate change,"
the leaders said.
At the same time, efforts to address climate change must be consistent with each
member's international trade obligations, they said.
The leaders reaffirmed their commitment to tackle the threat of climate change and
work towards an ambitious outcome in the world climate talks in Copenhagen in
December.
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"Fixing the economic situation today is like going to the dentist: It hurts a lot, but you
know you are investing in the future," said Maria Olivia Recart, Chile's vice finance
minister.
And her words were widely echoed by participants to the APEC meetings.
• Asia-Pacific region to become world's leading aviation market in 20 years,
Boeing (15th November)
The Asia-Pacific region will become a leader in the world's aviation market in the next 20
years, forecast an executive officer of the Boeing company.
The Asia-Pacific region would lead the global aviation market with growing demand
and become a new center of the world aviation market in the next two decades, said
Kenneth G. Yata, Vice President of Business Development of Boeing (China) Co., Ltd. at
an international forum on manufacturing industry management held Saturday in Tianjin,
a north China port city.
As demand in Europe and the United States slows, the Asia-Pacific region will be a
growing market for commercial airplanes in the coming two decades to fit increasing
demand for tourism, passenger and freight transport, said Yata.
He said, passenger flow by air will increase by an average 6.5 percent annually in the
region in the coming two decades, surpassing the North American and European markets,
said Yata.
Currently, Asia-Pacific region accounts for 32 percent of the world's air passenger
market. By 2028, the share is likely to rise to 41 percent, the company forecast.
To Boeing, China would be the second largest market for commercial planes in the
next two decades, said Yata, adding the country would buy an estimated 400 billion U.S.
dollars' worth of commercial airplanes, or 3,700 units over the period.
• Chinese banks should defer some pay – regulator (15th November)
Chinese banks should defer some of their executives' pay so that performance can be
judged over a longer time horizon, a senior regulator said on Sunday.
The call by Jiang Dingzhi, a vice chairman of the China Banking Regulatory
Commission, echoed moves by a growing group of countries to get banks to reduce the
emphasis on annual profits in determining pay, a short-term culture that has been blamed
in part for the global financial crisis.
But unlike some Western governments taking action to curb bank bonuses, Jiang
described the idea of deferred payment as a recommendation and did not say that Beijing
would introduce regulation requiring such a compensation practice.
"As all countries are earnestly reforming their financial industry and the global system is
changing, China's banking industry should feel urgency to improve its regulatory
framework, corporate governance and risk control," Jiang said at a financial forum in
Beijing.
Pay at state-owned Chinese banks is already extremely low by global standards and their
executives are typically bureaucrats appointed by the government.
The presidents of the country's three biggest banks -- Industrial and Commercial Bank of
China (1398.HK) (601398.SS), China Construction Bank (0939.HK) (601939.SS) and
Bank of China (601988.SS) (3988.HK) -- are each paid roughly $230,000 per year.
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Chinese banks were sheltered from the ravages of the global financial crisis because of
their limited overseas investments and the country's largely closed capital account that
reduced its exposure to volatility abroad.
• Chinese president calls on APEC to reform itself to raise efficiency of co-op (15th
November)
Chinese President Hu Jintao on Sunday called on the Asia-Pacific Economic Cooperation
(APEC) to reform and improve itself to raise the efficiency of cooperation so as to keep
advancing
with
the
changing
times.
In his address at the two-day APEC Economic Leaders Meeting which opened on
Saturday in Singapore, President Hu said profound changes were underway in the AsiaPacific and world economy and APEC, after 20 years of development, now faced new
challenges
and
problems.
He put forward the following three proposals on how APEC can keep advancing with the
changing
times:
First, APEC should focus more on its unique strengths and continue to promote trade and
investment
liberalization
and
facilitation.
President Hu said as the initiator and pioneer of trade and investment liberalization and
facilitation in the region, APEC should continue to pursue regional economic
cooperation, promote regional economic integration and raise the level of economic
development
of
all
its
members.
Hu said the Bogor Goals concerned APEC's credibility, cohesiveness and future
development, adding that if the developed members of APEC could meet the Bogor
Goals as scheduled, it would give a strong boost to the confidence of all parties, bring
about greater regional trade and move forward regional economic integration.
The Chinese top leader said that China supported APEC in giving priority to meeting the
Bogor Goals by developed members in its near-term agenda and taking solid steps
towards
this
objective.
Second, APEC should scale up input and promote even greater achievements in
economic
and
technical
cooperation.
According to Hu, economic and technical cooperation serves as an important guarantee
for continued progress in trade and investment liberalization and facilitation in the region
and offers the means to bridge the development gap among APEC members and achieve
common
prosperity.
Hu said all APEC members should place high importance on economic and technical
cooperation, bearing in mind that such cooperation would contribute to the balanced and
orderly
development
of
all
members.
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He added that the APEC members needed to scale up input into economic and technical
cooperation under the new circumstances, take earnest steps to help developing members
in capacity building, increase technology transfer and bring economic and technical
cooperation
to
a
higher
level.
To promote APEC economic and technical cooperation, Hu said, the Chinese government
will allocate 10 million U.S. dollars for the establishment of the China-APEC
Cooperation Fund to encourage and support participation by relevant Chinese
departments and businesses in APEC economic and technical cooperation.
Third, APEC should continue to increase its institutional dynamism through reform and
innovation.
President Hu said under the current circumstances, APEC should adopt a proactive
approach in adapting to new developments and meeting new challenges and steadily push
forward
its
own
reform
and
institutional
building.
Meanwhile, Hu added that APEC should also optimize resource allocation, raise work
efficiency and make its cooperation more effective so that its efforts in addressing major
economic issues would be more relevant, focused and timely, which would help APEC
increase its influence in regional cooperation and make new and even greater
contributions to economic and social development and improving people's life in the
region.
The Chinese president said China would work together with the rest of the international
community to meet the challenges and seek inclusive, sustainable and balanced economic
growth.
He promised that China was committed to the path of peaceful development and a winwin
strategy
of
opening-up.
"We will always pursue development that is peaceful, open and cooperative and make
unremitting efforts towards a harmonious world of enduring peace and common
prosperity," Hu concluded.
• APEC leaders reject 'growth as usual' (16th November)
President Hu Jintao joined other leaders at the Asia-Pacific Economic Cooperation
(APEC) summit yesterday to pursue a new strategy for growth after the global economic
crisis and reject protectionism.
The profound impact of the crisis persists and the foundation is not solid enough for a
global economic upturn, Hu told the two-day summit that ended yesterday afternoon.
"Economies should take more substantial and effective steps to boost consumption and
expand domestic demand," Hu said.
The president returned to Beijing last night after wrapping up a six-day Southeast Asia
trip, which brought him to Malaysia and Singapore for state visits and the APEC Leaders'
Informal Meeting in the city-state.
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The summit capped a weeklong series of APEC events in Singapore with leaders of its 21
member economies, including the United States and China, pushing for efforts to
liberalize trade in the region and beyond.
Countries should uphold fair, free and open global trading and investment systems, as
well as maintain the free flow of goods, investment and services to help restore world
economic growth, Hu said.
Leaders of APEC economies, which account for more than half of the global economy,
said they would continue with huge stimulus spending measures "until a durable
economic recovery has clearly taken hold".
Leaders said they would also "firmly reject all forms of protectionism and reaffirm our
commitment to keep markets open and refrain from raising new barriers to investment or
to trade".
According to a concluding declaration at the summit, it was stated that leaders would not
"go back to 'growth as usual'," and that a new growth paradigm and model of economic
integration was needed.
Foreign Minister Yang Jiechi said last night that many of China's standpoints had been
endorsed and included in the declaration.
Leaders at the APEC summit also resolved to push the Doha Round of World Trade
Organization negotiations to its finish line, which would be the end of 2010. The round of
talks has stalled for eight years.
"China is committed to the establishment of a fair, equitable and non-discriminatory
multilateral trading regime and has participated in the Doha Round negotiations with a
constructive stance," Hu said.
Hu added that the government was ready to strive to achieve "early, comprehensive and
balanced outcomes" at the negotiations.
But an expert said the role of APEC in opposing trade protectionism is "limited".
"It is a loose organization, almost now equal to a forum of dialogue," said Wang Yong, a
professor of international political economy at Peking University.
Members have very different interests in APEC, he said. "They have different views on
the agenda of (realizing) trade liberalization."
APEC leaders also vowed to work toward positive outcomes at next month's United
Nations Climate Change Conference in Copenhagen, Denmark.
"We reaffirm our commitment to tackle the threat of climate change and work toward an
ambitious outcome in Copenhagen," according to a collective statement by leaders.
The statement also highlighted the role of developed nations to bear the financial burden
of measures to battle global warming.
"Global action to reduce greenhouse gas emissions will need to be accompanied by
measures, including financial assistance and technology transfer to developing economies
for their adaptation to the adverse impact of climate change,"the statement said.
• China’s Role as Lender Alters Dynamics for Obama’s Visit (New York Times)
When President Obama visits China for the first time on Sunday, he will, in many ways,
be assuming the role of profligate spender coming to pay his respects to his banker.
That stark fact — China is the largest foreign lender to the United States — has changed
the core of the relationship between the United States and the only country with a
reasonable chance of challenging its status as the world’s sole superpower.
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The result: unlike his immediate predecessors, who publicly pushed and prodded China
to follow the Western model and become more open politically and economically, Mr.
about the health care legislation making its way through Congress. The president’s
budget director, Peter R. Orszag, answered most of their questions. But the Chinese were
not particularly interested in the public option or universal care for all Americans.
“They wanted to know, in painstaking detail, how the health care plan would affect the
deficit,” one participant in the conversation recalled. Chinese officials expect that they
will help finance whatever Congress and the White House settle on, mostly through
buying Treasury debt, and like any banker, they wanted evidence that the United States
had a plan to pay them back.
currency manipulation, or when President Bill Clinton exhorted the Chinese to improve
human rights.
Mr. Obama has struck a mollifying note with China. He pointedly singled out the
emerging dynamic at play between the United States and China during a wide-ranging
speech in Tokyo on Saturday that was meant to outline a new American relationship with
Asia.
“The United States does not seek to contain China,” Mr. Obama said. “On the contrary,
the rise of a strong, prosperous China can be a source of strength for the community of
nations.”
He alluded to human rights but did not get specific. “We will not agree on every issue,”
he said, “and the United States will never waver in speaking up for the fundamental
values that we hold dear — and that includes respect for the religion and cultures of all
people.”
White House officials have been working for months to make sure that Mr. Obama’s
three-day visit to Shanghai and Beijing conveys a conciliatory image. For instance, in
June, the White House told the Dalai Lama that while Mr. Obama would meet him at
some point, he would not do so in October, when the Tibetan spiritual leader visited
Washington, because it was too close to Mr. Obama’s visit to China.
Greeting the Dalai Lama, whom China condemns as a separatist, weeks before Mr.
Obama’s first presidential trip to the country could alienate Beijing, administration
officials said. Every president since George H. W. Bush in 1991 has met the Dalai Lama
when he visited Washington, usually in private encounters at the White House, although
in 2007 George W. Bush became the first president to welcome him publicly, bestowing
the Congressional Gold Medal on him at the Capitol. Mr. Obama met the Dalai Lama as a
senator.
Similarly, while he was campaigning for the presidency, Mr. Obama several times
accused China of manipulating its currency, an allegation that the current Treasury
secretary, Timothy F. Geithner, repeated during his confirmation hearings. But in April,
the Treasury Department retreated from that criticism, issuing a report that said China
was not manipulating its currency to increase its exports.
While American officials said privately that they remained frustrated that China’s
currency policies lowered the cost of Chinese goods and made American products more
expensive in foreign markets, they said that they were relieved that China was fighting
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the global recession with an enormous fiscal stimulus program to spur domestic growth,
and added that now was not the time to antagonize Beijing.
China is not viewed as a trouble spot for the United States. But this administration, like
its predecessor, has had difficulty grappling with a rising power that seems eager to avoid
direct clashes with the United States but affects its interests in many areas, including
currency policy, nuclear proliferation, climate change and military spending.
In that regard, two members of Mr. Obama’s foreign policy team said that the United
States’ interactions with the Chinese had been far too narrow in past years, focusing on
counterterrorism and North Korea. Too little was done, they said, to address China’s
energy and environmental policies, or its expansion of influence in Southeast Asia, South
Asia and Africa, where China has invested heavily and used billions of dollars in aid to
advance its political influence.
One hint of the Obama administration’s new approach came in a speech this fall by
James B. Steinberg, the deputy secretary of state, who has deep roots in China policy. He
argued that China needed to adopt a policy of “strategic reassurance” to the rest of the
world, a phrase that appeared intended to be the successor to the framework of the Bush
era, when China was urged to embrace a role as a “responsible stakeholder.”
“Strategic reassurance rests on a core, if tacit, bargain,” Mr. Steinberg said. “Just as we
and our allies must make clear that we are prepared to welcome China’s ‘arrival,’ ” he
argued, the Chinese “must reassure the rest of the world that its development and
growing global role will not come at the expense of security and well-being of others.”
The Chinese reaction has been mixed, at best. The official China Daily newspaper ran a
column just before Mr. Obama’s arrival suggesting that the United States needed to
provide some assurance of its own — to “respect China’s sovereignty and territorial
integrity,” code words for entirely backing away from the issues of how China deals with
Taiwan and Tibet.
In the United States, the phrase “strategic reassurance” has been attacked by conservative
commentators, who argue that any reassurance that the United States provides to China
would be an acknowledgment of a decline in American power.
In an op-ed article in The Washington Post, the analysts Robert Kagan and Dan
Blumenthal argued that the policy had echoes of Europe “ceding the Western Hemisphere
to American hegemony” a century ago. “Lingering behind this concept is an assumption
of America’s inevitable decline,” they wrote. White House officials shot back, insisting
that it is China that needs to do the reassurance, not the United States.
In China, Mr. Obama will meet with local political leaders and will host an Americanstyle town hall meeting with students in Shanghai. He will then spend two days in Beijing
meeting with President Hu Jintao.
It seems unlikely that Mr. Obama will get the same celebrity-type reception in Beijing
that he received in Cairo, Ghana, Paris and London. China seems mostly immune to the
Obama fever that swept other parts of the world, and the Chinese are growing more
confident that their country has the wherewithal to compete with the United States on the
world stage, analysts say.
“Obama is still a positive guy, and all over the world most people think he’s more
energetic, more sincere, than Bush, more a reformist,” said Shi Yinhong, a professor and
an expert on United States-China relations at People’s University in Beijing. “But in
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China, Obama’s popularity is less than in Europe, than Japan or Southeast Asia.” In
China, he said, “there is no worship of Obama.”
For instance, during the Bush and Clinton years, China might release a few political
dissidents on the eve of a visit by the president as a good-will gesture. This time,
American officials say, they do not expect any similar gestures, although they say that
Mr. Obama will raise human rights issues privately with Mr. Hu.
“This time China will agree to have a human rights dialogue with the U.S. on some
cases,” Mr. Shi said, but “the arguments have changed compared to the past. Now we
say, ‘We are a different country, we have our own system, our own culture.’ ”
Chinese insurance regulator stresses supervision on insurance investment ( 16th
November)
China should enhance supervision and management of the country's insurance
investment, said Li Kemu, vice chairman of the China Insurance Regulatory Commission
(CIRC),on Sunday.
"With insurance funds were extended into disparate fields, other than bank deposit,
demand for a better supervision and risk control enhanced, said Li at the International
Finance Forum held in Beijing.
By the end of September, 3.4 trillion yuan (497.8 billion U.S. dollars) of insurance
funds were invested in bonds, mutual funds, and stocks markets. Bonds investment alone
accounted for 50.6 percent of the total.
Jiang Dingzhi, China Banking Regulatory Commission (CBRC) Vice Chairman also
highlighted the importance of establishing a "all-coverage" financial supervision system.
He suggested the country broaden the financial supervision and management system,
which would put the mutual funds, hedge funds, and credit risks appraisal agencies under
control.
The new system requires financial institutions to share information, and also cooperate
to fill the supervision blanks between different financial markets, he said.
•
•
Chinese scholar suggests Taiwan finance sector enter China under WTO
A Chinese scholar attending a cross-Taiwan Strait seminar in Taipei said Saturday that
Taiwanese financial institutions seeking to gain access to China's market should try to
enter under the framework of the World Trade Organization (WTO).
Deng Lijuan, deputy director of the Taiwan Research Center of Xiamen University, said
that for substantive progress in cross-strait cooperation, the financial sector should be
included in the early harvest program of the proposed partial free-trade agreement
between Taiwan and mainland China, known as the Economic Cooperation Framework
Agreement (ECFA).
Such an approach will realize the reciprocal market opening for the financial sector,
while not violating WTO guidelines and regulations, and it would be more workable than
signing a cross-strait Memorandum of Understanding (MOU), she added.
Deng was among a group of Taiwanese and mainland Chinese scholars from think tanks
and universities speaking at a two-day seminar sponsored by the Pacific Cultural
Foundation in Taipei on Friday and Saturday.
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Deng, also raised a concept of setting up a special financial zone with more relaxed
regulations on the coastal region in southeast China's Fujian Province for Taiwanese
financial institutions.
However, several Taiwanese scholars suggested that the concept was not practical
because Taiwanese institutions are eyeing a much larger market, especially markets in
regions in China with a large concentration of Taiwanese-invested companies.
Professor Song Fengming of Tsinghua University in Beijing opined at the seminar that
Taiwanese financial institutions should not expect guaranteed advantages in entering the
Chinese market with more favorable treatments than those regulated by the WTO, since
most clients would be inclined to seek services from banking institutions that are big,
more experienced and have a longer standing.
Taiwanese banking institutions may find it hard to compete, he said.
Chinese, Algerian enterprises seek to expand business cooperation (16th
November)
A Chinese trade delegation and representatives from Algerian companies met here
Sunday seeking further cooperation in areas such as infrastructure construction, machine
building, finance, service and agriculture.
Wan Jifei, president of the China Council for the Promotion of International Trade
(CCPIT) and also a member of the delegation, said after meeting with Algerian trade
officials that the Chinese companies had taken part in important construction projects in
Algeria and had done a satisfactory job where timing and quality of the projects were
concerned.
Although the global economy was still affected by many uncertainties at present, China
always kept its pledge to promote trade in developing countries, especially in African
countries, Wan said. China gave underdeveloped African countries more support in duty
exemption, fund raising and loans. The CCPIT encouraged Chinese companies to invest
in Africa and to expand training of the African management staff and personnel in
chambers of commerce and industry.
Algeria had signed cooperation agreements with the European Union, the United States
and Arab countries, an Algerian trade official said, and Chinese companies might take the
opportunity to invest more in order to cover more market shares in those regions.
The Chinese economic and trade delegation visited Algeria after attending a SinoAfrican entrepreneurs conference in Egpyt.
•
• Economic zone expands mainland and Taiwan links (16th November)
Since the Xiamen Special Economic Zone was officially established in 1981, the city has
become an important staging post for economic and cultural communication between
Xiamen and Taiwan, due largely to their geographic proximity.
Xiamen overlooks Taiwan across the Straits. It is only around 10 km from Xiamen to the
Taiwanese island of Jinmen and some 400 km between Xiamen and Taiwan's capital,
Taipei.
Taiwan is Xiamen's third largest trading partner. In 2008, the city's trade from the island
increased by 25.4 percent year-on-year to $3.83 billion. Duty-free fruits and marine
products imported from Taiwan through Xiamen account for more than a half of the
mainland's total.
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The Dadeng-Taiwan Small Goods Free Trade Market, opened in 1995, is the only
Taiwan-oriented small goods market on the Chinese mainland. It is planned to extend its
size from 0.08 sq km to 0.83 sq km in the near future.
Xiamen is now one of the most attractive destinations for Taiwan investors. According to
a survey by the Taiwan Electrical and Electronic Manufacturers' Association in 2009,
Xiamen is number 12 on the list of the best mainland cities for Taiwan-based companies
to invest in. This ranks it as the highest in Fujian province. Among the four State-level
investment areas for Taiwanese investors, three are located in Xiamen - Haicang, Jimei
and Xinglin.
By the end of 2008, Xiamen had attracted 3,315 enterprises from Taiwan, representing a
total contract investment of $9.3 billion. At present, the output value of Taiwan
enterprises in the area contributes 40 percent or so to the city's total industrial output
value annually. In 2008, the industrial output value of Xiamen reached 304.23 billion
yuan.
Taiwan enterprises in Xiamen mainly focus on industries such as chemical fiber,
electronics, information technology, rubber, construction materials and machinery.
Xiamen plans to strengthen cooperation with the island in other industries, including
software, manufacturing, finance, tourism, shipping, mail business and agriculture.
There are now 39 Taiwan software enterprises in Xiamen with an annual output value of
1.76 billion yuan. The city aims to raise the number of Taiwan software enterprises to
100, with an annual output value exceeding 10 billion yuan, by 2011.
The output value of the optronics industry in Xiamen reached 40 billion yuan last year,
with Taiwan enterprises contributing one third of the total. It is estimated that the output
value of the industry will reach 100 billion yuan in 2010.
Xiamen is also striving to boost cooperation with Taiwan in the financial sector.
Commenting on the plan, Liu Cigui, the mayor of Xiamen, said: "We are trying to
persuade more financial institutions from Taiwan to set up securities firms, insurance
companies and funds in our city. They are also being encouraged to buy shares in
Xiamen's local financial institutions. We hope to build Xiamen into an experimental area
for financial cooperation with Taiwan."
In recent years, Xiamen has been playing a leading role in financial cooperation between
the mainland and Taiwan. In 1998, Bank of China, for the first time on the mainland,
permitted exchange business between the renminbi and the new Taiwan dollar to begin in
the city.
In December 2008, the Fubon Financial Holding Co bought 19.99 percent of the Xiamen
City Commercial Bank through its subsidiary in Hong Kong, making it the first Taiwanbased financial institution to invest in the mainland.
In the same year, the first insurance company jointly backed by the mainland and Taiwan
- the King Dragon Life Insurance Co Ltd - was established in Xiamen.
• Low interest rate threatens recovery (16th November)
China's top bank regulator said yesterday the weakening US dollar and low interest rates
are spurring speculation in stocks and real estate, distorting global asset prices and
threatening the global economic recovery.
The situation poses an "insurmountable risk to the recovery of the world economy," said
Liu Mingkang, chairman of the China Banking Regulatory Commission. Liu said the
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declining US dollar and reassurances by officials that interest rates will remain low were
encouraging a "massive" US dollar carry trade - the practice of borrowing money at low
rates in one currency to invest in assets in another currency that offer a higher return.
• Trip hailed by US business community (16th November)
The visit by Barack Obama, also the first since he took office, has been well received by
US businesses in China who believe the official tour will bring them benefits.
"We welcome President Obama to China. We are pleased that the state of China-US
relations remains strong," said the American Chamber of Commerce in China in a
statement.
"Solid bilateral trade relations between the US and China are important to the business
community. AmCham-China believes in ongoing dialogue," said the statement.
Clean energy and energy efficiency are key topics for Obama in his consultations with
Chinese President Hu Jintao. The US expects to improve the job situation by selling its
technologies to China, which has been committed to energy saving.
The US companies involved in the business are more than happy to see such dialogues.
For example, technology and power company General Electrics has mentioned repeatedly
that China is a "critical" market for the company with huge business opportunities.
It has had a strong presence in China, with six corporations here. It has helped equip the
eye-catching Beijing Taiyanggong power plant with its high-efficiency and lowemissions technology.
"The project really leads the industry in the successful deployment of advanced
technology, maximizing efficiency while minimizing environmental impact," said Jack
Wen, president and CEO of GE Energy China.
However, Jack Rosen, chairman of American Jewish Congress and chief executive of
several commercial and residential real estate firms, said: "I don't expect that we will see
any significant breakthroughs on this trip but it will form an important base and leaders
will begin to understand each other a little bit better."
• Taiwan and China set ECFA agenda on APEC sidelines (16th November)
Taiwan's Minister of Economic Affairs Shih Yen-hsiang met his Chinese counterpart
behind closed doors in Singapore yesterday to work out an agenda for bilateral talks on a
proposed bilateral economic cooperation framework agreement (ECFA).
The meeting between Shih and China's Minister of Commerce Chen Deming took place a
day after Chinese President Hu Jintao promised Lien Chan, Taiwan's representative to the
annual summit of the Asia-Pacific Economic Cooperation (APEC) forum, that talks on
ECFA, a cross-Taiwan Strait version of a free trade agreement, could start within this
year.
Shih was accompanied by Huang Chih-peng, director of the Bureau of Foreign Trade
under the Ministry of Economic Affairs, and Lu Wen-hsiang, an adviser and section chief
at Taiwan's representative office in Singapore, during his meeting with Chen.
Sources close to the Taiwanese delegation said Shih and his Chinese counterpart
exchanged views on the ECFA-related consultative framework, timetable and topics to be
addressed.
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With the two sides scheduled to hold a fourth round of high-level talks in December in
central Taiwan's Taichung City, the sources said the ECFA issues are expected to be
touched upon during that meeting in accordance with Hu's promise to Lien in their
bilateral talks on APEC sidelines Saturday.
Four agreements are scheduled to be signed during the Taichung round of talks between
the two sides' top cross-strait negotiators ?Taiwan's Straits Exchange Foundation
Chairman Chiang Pin-kung and Chen Yunlin, president of China's Association for
Relations Across the Taiwan Straits.
Shih said on the APEC sidelines that the four agreements to be sealed at the upcoming
Chiang-Chen meeting concern fishing crew cooperation, farm produce quarantine
inspection, avoidance of double taxation and industrial product standards, inspection and
certification. "All of these agreements are very important in the process of normalizing
cross-strait trade and economic relations," Shih said.
According to a previous cross-strait consensus, the two sides will start formal
negotiations on ECFA issues in January next year, with relevant issues being tentatively
discussed first at the forthcoming Chiang-Chen talks.
If all goes well, the ECFA deal is expected to signed at the fifth round of Chiang-Chen
talks scheduled for the first half of 2010.
Taiwan attaches great importance to the cross-strait ECFA deal, as it hopes the pact can
serve as a stepping-stone for the signing of free trade agreements with other countries to
facilitate freer flow of goods and capital and to protect it from being marginalized in
today's era of increasing regional and global economic integration.
Taiwan and China have already held four rounds of informal talks on ECFA, all of which
focused on principles related to an "early harvest list" under the agreement.
The "early harvest list" refers to items to be subject to tariff concessions or full market
opening as soon as the ECFA pact is signed.
• Venture to boost plane systems bid (16th November)
A 50-50 major venture will be set up between China and the United States to develop and
sell Chinese-made equipment for commercial aircraft, it was revealed yesterday.
The project between China Aviation Industry Corp (AVIC), a manufacturing
conglomerate, and US-based General Electric will begin operation in the middle of next
year.
Work will first be focused on bidding to supply the avionics system for the C919, the
Chinese-built single-aisle aircraft that will compete with the best-selling Boeing B737
and Airbus A320.
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The partnership will be based in China but targeted at the US and global markets,
according to a framework agreement signed by the companies yesterday. No financial
details were available.
"The joint venture will be a strategic move to get AVIC more involved in the global
aviation manufacturing industry," said Lin Zuomin, president of AVIC.
The project will also allow the conglomerate to streamline its diversified interests and
focus on its core aviation manufacturing business, he said.
AVIC has more than 200 subsidiaries and companies across China, and last week
obtained a 23-percent stake in the restructured Chang'an Automobile Group by injecting
its auto making assets into the company.
"The joint venture creates approximately 200 jobs in the US, in addition to creating
bilateral industrial cooperation with China," said Lorraine Bolsinger, president and CEO
for General Electric's aviation systems division.
Commercial Aviation Corp in Shanghai has been sourcing parts and components globally
for the C919 airliner, which is expected to take off in 2014 and enter into service in 2016.
"Foreign suppliers are encouraged to form partnerships with Chinese manufacturers, and
our priority will go to these companies," said Wu Guanghui, chief designer of the C919
program and deputy general manager of Commercial Aviation Corp.
Overseas aviation suppliers are competing for a host of opportunities arising from the
project.
CFM International, General Electric's joint venture with Safran SA of France, is bidding
to supply engines for the C919, with other bidders including Pratt & Whitney, and
Goodrich Corp. The winning bid is expected to be announced by the end of this year, said
Wu.
General Electric is the sole engine supplier for the ARJ21, a China-made, 90-seat airliner
jet expected to enter service next year.
Goodrich and Xi'an Aircraft International, part of AVIC, signed agreements in August to
form two joint ventures to produce landing gear and housing components for the C919
project.
China will require 3,770 new aircraft worth $400 billion over the next 20 years and will
remain the world's largest commercial airplane market outside the US, said a report
released by Boeing in September.
Single-aisle airplanes will account for 70 percent of new purchases, driven by China's
fast-growing domestic market, the report added.
• Positive FDI data drive Chinese shares 2.7% higher (16th November)
Chinese equities rose 2.74 percent Monday on the newly released growing monthly
foreign direct investment (FDI) figures, showing investors' heartened confidence on the
revival of the world's fastest-growing economy.
The benchmark Shanghai Composite Index, which covers both A and B shares,
climbed 2.74 percent to 3,275.05 points. The Shenzhen Component Index added 3.28
percent to 13,699.68 points.
The amount of foreign direct investment China received climbed for the third
consecutive month in October, up 5.7 percent year on year to 7.1 billion U.S. dollars, the
Ministry of Commerce said here Monday.
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• Nation calls for ease of hi-tech export limits (17th November)
As the United States reviews its restrictions on hi-tech exports to China, the Ministry of
Commerce's spokesman urged the US to shorten the timetable for loosening export
controls.
US President Barack Obama has asked Secretary of State Hillary Clinton and relevant
agencies to re-examine the nation's limits on hi-tech equipment shipped to China, said US
Commerce Secretary Gary Locke in Beijing yesterday. He is accompanying President
Obama on his visit to China.
The US is making efforts to "rebalance export control," said Locke.
Though the US must maintain oversight of sensitive technologies dealing with national
security, it needs to loosen restrictions on technologies that pose no harm to the US, he
added.
Hi-tech export control is among the topics, including anti-protectionism and intellectual
property rights, to be discussed between Chinese and US trade officials during Obama's
visit, said Yao Jian, spokesperson for the Ministry of Commerce at a briefing yesterday in
Beijing. He urged the US to "loosen the hi-tech export restrictions as soon as possible".
Washington's restrictions on hi-tech exports have "indeed affected unbalanced Sino-US
trade ties" and "strongly restrained the competitiveness of US-made products," Yao said.
Chinese hi-tech imports from the US have shrunk since 2001. Eight years ago, the US
accounted for 18.3 percent of Chinese hi-tech imports - it is now at 7 percent, said Yao.
"The US exports less than most developed countries and must do more Increasing exports
is a key part to create jobs in the US," said Locke.
"China welcomes the US expanding exports to China," says Yao. "Service industries and
high technologies should be the strength of the US in Sino-US trade," he added.
Tensions between China and the US have been rising as the US has imposed 10 antidumping and anti-subsidy investigations on Chinese products this year.
Locke said trade disputes are a "natural part" of bilateral trade ties and "the US is not
engaged in protectionism."
Several agreements related to clean-energy technologies will be signed between China
and the US during Obama's visit, Locke said.
Direct investment from the US to China was $2.83 billion in the first 10 months, ranking
fifth in terms of amount after individual investments in Hong Kong, Taiwan, Japan and
Singapore, according to figures released by Ministry of Commerce yesterday.
Foreign direct investment in China continued to grow in October for the third consecutive
month, indicating that China remains buoyant on the prospects of attracting foreign
funds.
China's foreign direct investment increased to $7.1 billion in October, up 5.7 percent over
the previous year. More than 18,000 foreign-invested companies were approved in the
first ten months, down 20.1 percent year on year, involving investments worth $70.9
billion.
• CIMC set to purchase YRSL stake (17th November)
China International Marine Containers (Group) Ltd (CIMC) will spend $1.7 billion to
buy stakes of Yantai Raffles Shipyard Ltd (YRSL) to strengthen the group's marine
engineering business, company executives announced yesterday.
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The container provider is expected to get controlling rights for the biggest production
base of drilling platforms in China through the unconditional voluntary cash tender offer.
Bright Day Ltd, a wholly owned subsidiary of CIMC Hong Kong, will buy up to 44.79
percent of YRSL's floated shares at a price of $1.41 per share. CIMC Hong Kong and its
wholly owned subsidiary, Sharp Vision Holdings Ltd, hold 18.3 percent of YRSL shares.
According to the deal, if CIMC Group purchases of YRSL shares were less than 50
percent, one of the bigger shareholders would sell an 8.5 percent stake to CIMC Hong
Kong.
At present BT Entities (Leung Kee Holdings Ltd and Bright Touch Investments Ltd)
holds 36.91 percent of YRSL's listed shares while DnB NOR Bank ASA holds 37
percent, and Platinum Nominee Ltd 7.4 percent.
CIMC said the stake buy would increase the company's investment and capital in marine
engineering, a sector it entered in 2008. The stake buy would also help make YRSL's
strategic development goals more consistent with the group's operational plans.
"Taking into consideration the development of the global marine engineering sector,
particularly in China, and the subsequent demand growth for relevant equipment, we
expect the deal to bolster profits in the long run," the company said in its disclosure
statement. CIMC also expects to cash in on the excellent resources of YRSL.
During the third quarter of this year, CIMC reported a loss of around 50 million yuan,
with total net profit in three quarters falling nearly 50 percent year-on-year to 776 million
yuan.
"The company has always been seeking chances to shift its focus from container
manufacturing to industries with higher added value like energy equipment. The deal
looks good at current prices, as the shipbuilding industry has been languishing due to the
economic crisis," said Guo Yaling, an analyst with CITIC Securities.
Guo said CIMC's cost control advantage largely due to its long experience in managing
the low-profit container industry, would suit YRSL, a company of excellent products but
with higher costs.
Founded in Singapore in 1994 and based in Shandong province, YRSL went public in
May 2006 at the Norwegian over-the-counter market, floating 273 million ordinary
shares. It is experienced in building ships for the offshore crude oil and natural gas
market, including self-elevating drilling platforms, semi-submersible platforms, floating
production, storage and offloading vessels, floating cranes, pipe laying vessels and so on.
For the period ending June 30 this year, YRSL reported revenue of S$440 million and
nearly S$23.6 million as net profit.
CIMC is the biggest container provider in China, with businesses extending to the
manufacturing of trailers, tank equipment and airport equipment.
The company had 47.327 billion yuan sales and 1.407 billion yuan net profit in 2008. It
has 100 subsidiaries and 47,000 employees in China, North America, Europe, Asia and
Australia.
• Huawei outshines rivals in telecom equipment mart (17th November)
Chinese technology firm Huawei Technologies is set to become the second largest
telecom equipment provider in the world in terms of revenue by the end of the year,
cashing in on its strong order wins both at home and abroad.
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The company may, however, find the going tough in the long run as it has to encounter
tapering demand and stiff competition from its rivals, warn experts.
Unlike most of the other Chinese firms, Huawei earns nearly 70 percent of its revenue
from the overseas markets, while the domestic market accounts for the balance. That in
turn, has also made the privately-held Huawei one of the most successful Chinese firms
overseas.
Fang Meiqin, associate director with research firm BDA China, said yesterday that
Huawei's revenue is likely to go up by 21 percent this year to $18.4 billion. That would
help the Chinese firm to leapfrog over its nearest rival Nokia Siemens Networks which
has forecast a full year revenue of $15.7 billion.
Fang said Huawei has gained significantly over its rivals Alcatel Lucent and Nokia
Siemens Networks both of whom have expected their revenue to fall 22 percent and 26
percent respectively this year due to the economic downturn.
"I think this is a great breakthrough for Huawei, as Nokia Siemens Networks is a really
strong rival," said Fang. The Chinese firm may still face considerable challenge to
dislodge market leader Ericsson from the top slot as the Swedish company has forecast
full year revenue of $26 billion.
According to a recent report from research firm Dell'Oro, Huawei has already bagged the
second position in the global mobile network gear market during the third quarter of this
year. The Chinese firm has nearly doubled its market share in this segment to 20 percent
from 11 percent last year.
Last year, Huawei reported operating revenue of $18.3 billion, making it the fourth
largest telecom equipment provider in the world, said BDA China.
A major chunk of Huawei's revenues this year came from the country's massive telecom
spending for 3G services and related telecom equipment. The three main telecom
companies in the country are expected to invest nearly $41 billion to build 3G
infrastructures by 2011.
Fang from BDA China said China's capital spending is expected to increase 11 percent
this year due to the 3G licensing and the government's stimulus package.
But what has made industry experts wake up and take notice was when the Chinese firm
outbid its rivals Ericsson and Nokia Siemens and bagged the order to build a fourth
generation (4G) mobile network in Norway.
•
Mainland equities edge up led by renewable energy shares (17th November)
Chinese shares advanced to a three-month high yesterday led by gains in the renewable
energy sector amid expectations that US President Barack Obama's visit may boost the
energy cooperation between the two countries.
The benchmark Shanghai Composite Index climbed 2.74 percent to close at 3,275.05
points. The Shenzhen Component Index rose 2.5 percent to 1,181.63 points.
The trading turnover for the two exchanges rose to 372.3 billion yuan from last Friday's
274.8 billion yuan.
Renewable energy shares were in the limelight yesterday. Zhejiang Feida Environmental
Science & Technology surged nearly 10 percent to 15.9 yuan, while Shanxi Lu'an
Environmental Energy Development climbed 10 percent to 50.64 yuan.
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Obama will meet with Chinese President Hu Jintao today for talks that are expected to
include climate change, new energy cooperation, trade relations and the yuan
appreciation.
Analysts pointed out that Obama's trip has stimulated significant capital flows to the new
energy sector and the uptrend is likely to continue in the coming weeks.
"Low-carbon economy has been a hot issue in talks between leaders of the two countries
and the Copenhagen summit next month will further extend the gains in the new energy
sector", said Dong Gaofeng, an analyst with Donghai Securities.
China is moving toward setting its carbon intensity target, which aims at a 40 to 45
percent reduction in carbon emissions by 2020.
Dong said he remained optimistic about the uptrend in the market and said it would
continue through the year and extend to the first quarter of next year.
However, China's foreign currency-denominated B share markets declined slightly after a
strong surge in the past week.
The US dollar-denominated B shares at the Shanghai Stock Exchange fell 0.4 percent to
250.24 points while the Hong Kong dollar-denominated B shares on the Shenzhen bourse
fell 0.2 percent to 624.17 points.
China's B share market witnessed a strong rally on Friday, gaining 9.42 percent to reach
an 18-month high amid speculations of yuan appreciation and a possible merger with the
planned international board.
Analysts said yesterday's small correction was in response to the recent sharp surges but
maintained that B shares remain valuable for mid- and long-term investment given their
cheaper price than their counterparts in the A share market.
• Wuhan Iron, CVG ink iron ore deal (17th November)
China's third largest steelmaker, Wuhan Iron & Steel Group, yesterday said it had signed
a long-term iron ore supply contract with Venezuela's Corporacion Venezolana de
Guayana (CVG), in a move to help the company diversify its raw material sources.
Wuhan Iron will buy the iron ore using a different pricing mechanism from benchmark
prices set annually by the world's top three suppliers, the Wuhan, Hubei-based company
said in a statement on its website yesterday.
"This is the first contract to be implemented using the separate pricing mechanism,
signaling that Chinese iron ore purchase prices will not be restricted by the three top iron
ore producers," said the statement, without elaborating on what the rates would be.
CVG is the only iron ore producer in Venezuela, and currently has a production capacity
of 23 million tons. Venezuela has a proven iron ore reserve of 4.18 billion tons, with total
reserves amounting to 14.66 billion tons, said the statement.
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Analysts said the deal was in line with domestic steelmakers' strategy to diversify their
sources of iron ore supply. "With more deals like this, Chinese steel companies can
increase bargaining power in negotiations with the world's top three iron ore suppliers,"
said Xu Xiangchun, executive director of domestic consulting firm Mysteel.
It is easier for domestic companies to negotiate with these smaller producers on prices,
said Xu, adding that these deals can help cut domestic companies' reliance on the top
three suppliers.
Chinese steelmakers failed to reach a price agreement with suppliers Rio Tinto Group,
BHP Billiton Ltd and Cia Vale do Rio Doce this year. The three producers account for
three-quarters of the global sea-borne iron ore trade.
Japanese and South Korean steelmakers won a 33 percent price cut for contract iron ore
from suppliers this year.
Analysts said prices might jump 14 percent in 2010 to the second highest on record.
Wuhan Iron earlier offered to buy a stake in Brazilian mining group MMX Mineracao e
Metalicos SA and build a steel plant there.
Potential business deals are set out in a memorandum of understanding signed by Wuhan
Steel, MMX and LLX Logistica SA. MMX and LLX, both controlled by Brazilian
billionaire Eike Batista, plan to sell assets.
• Chinese shares rise to 3-month high (19th November)
Chinese equities jumped to three-month high after five consecutive rises on Thursday, led
by natural gas producers and pharmaceutical companies.
The benchmark Shanghai Composite Index was up 0.53 percent, or 17.38 points, to
close at 3,320.61. The Shenzhen Component Index increased 0.42 percent, or 57.20
points, to close at 13,699.55.
Combined turnover jumped to 320.20 billion yuan (47.09 billion U.S. dollars) from
233.04 billion yuan on the previous trading day.
All of the 28 shares in the ChiNext market for start-up stocks were up.
Four natural gas makes gained by their daily limits of 10 percent buoyed by expected
price hike of natural gas.
Changchun Gas rose 10 percent to 9.63 yuan, and Shaanxi provincial natural gas co.,
Ltd ended at 24.02 yuan, up 9.98 percent.
Biopharmaceuticals companies advanced as the rising danger of flu pandemic was
expected to raise vaccine demand.
The Northwestern Pharmaceuticals gained 9.97 percent to 12.58 yuan. Guangzhou
Pharmaceuticals Company Ltd., the biggest Chinese medicine maker in the country,
closed at 12.72 yuan, up 10.06 percent.
Bank shares bucked the trend on profit-taking. China Merchant's Bank fell 1.75
percent to 18.49 yuan. Industrial Bank Co., Ltd dipped 1.26 percent to 40.83 yuan.
• Expert warns of asset bubbles (19th November)
China is among the emerging markets facing risks of property and commodity market
bubbles, central bank advisor Fan Gang said, joining officials from the region in
expressing concern about surging asset prices.
A "double-digit" economic growth rate wouldn't be good for China, Fan, who heads the
National Institute of Economic Research, said at a business conference in Hong Kong
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yesterday. Chinese gross domestic product may be able to climb 8 percent to 9 percent
next year, he also said.
Fan is the latest voice to indicate the seeds of the next financial crisis may be being laid
in Asia in the wake of liquidity injections by the world's central banks. China's
government has encouraged a $1.3 trillion credit boom this year, helping growth
accelerate while at the same time aiding an 81 percent climb in the Shanghai Composite
Index of stocks.
Emerging economies "might overheat and experience financial turmoil", Bank of Japan
Governor Masaaki Shirakawa said in Tokyo on Nov 16. Liu Mingkang, China's top
banking regulator, said the day before that low US interest rates and the dollar's
depreciation present "new, real and insurmountable risks to the recovery of the global
economy".
World Bank President Robert Zoellick said last week in a Bloomberg Television
interview that "given the pace of recovery in East Asia, you could start to see some asset
bubbles". He added that there will "be a need" to consider raising interest rates and taking
other steps to restrain credit.
Accelerating growth
China's economy grew 8.9 percent in the third quarter from a year earlier, the fastest pace
in a year, as stimulus spending and record lending growth helped the nation lead the
world out of recession. The median projection of economists surveyed by Bloomberg
News is for GDP to jump more than 10 percent in the final three months of 2009.
Fan, the academic member of the People's Bank of China's monetary policy committee,
told property developers at a business conference in Hong Kong yesterday that while the
Chinese property market isn't "crazy", there is excessive speculation.
High savings are fueling that speculation, Fan said, urging consideration of taxes on
luxury properties. Levies are important to balance demand, he said.
China's southern city of Shenzhen is "a pioneer" by introducing a property tax, Fan said.
Consumer-price inflation isn't likely in coming months, with stable food prices providing
a restraint, Fan also said.
Fan said that China must continue its stimulus measures in 2010 to sustain growth, even
as he rejected the prospect of a double-dip slowdown in the expansion. The US may see a
renewed slump, he also said.
Policy stance
China should maintain a "moderately loose" monetary policy next year as government
stimulus wanes and private investment and external demand remain weak, the State
Information Center said on Nov 16.
The world's third-largest economy has countered a 12-month slide in exports by rolling
out a 4 trillion yuan stimulus package. Much of it is focused on investment, including the
building of roads, airports and railways.
Record lending this year and inflows of cash from investors betting on yuan gains has
added to the risk of asset bubbles in stocks and property. Home prices in 70 major
Chinese cities climbed 3.9 percent from a year earlier in October, the most in 14 months,
the government reported on Nov 10.
•
Damaged pipeline halts MMG zinc shipment from Oz mine (19th November)
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China Minmetals Corp, the nation's largest metals trader, has exhausted stockpiles and
halted shipments of concentrate from its Century zinc mine in northern Australia pending
repairs to a damaged pipeline.
"We've now completed shipping of all the zinc concentrate stocks that were stored," Sally
Cox, a spokeswoman for Minmetals' Melbourne-based MMG unit, said yesterday. The
mine in Queensland state is the world's second-largest open-pit zinc operation.
Customers including Nyrstar NV, the world's largest smelter of zinc, will source
alternative supplies while the company seeks to complete repairs to the pipeline that
ruptured on Oct 5, Cox said.
Zinc, used to galvanize steel, has surged 88 percent this year in London as a 4 trillion
yuan government spending program stoked demand in China.
"The impact on prices will be limited as the world is not short of zinc given stockpiles
have risen so much this year," Liu Biyuan, an analyst at GF Futures Co, said. "As well,
higher prices encourage a resumption of output that was stopped because of the economic
slowdown."
Credit Suisse Group AG last week raised its average zinc price forecast for 2010 by 36
percent to $2,100 a ton.
Stockpiles of zinc tallied by the London Metal Exchange have jumped 71 percent since
the beginning of the year as a global recession curbed demand. Inventories in Shanghai
warehouses last week were at their highest since the exchange started trading zinc futures
in April 2007.
A bypass will likely be connected to the main Century mine pipeline by the end of this
week and will be tested with water before restarting concentrate production, Cox said.
She wouldn't say whether the company had declared force majeure, a legal clause that
allows a company to miss deliveries because of circumstances beyond its control.
"We've been in ongoing contact with the customers," she said. "We are confident they
will want to take up the stock again once we are able to supply it."
Century produced 158,603 tons of zinc concentrate in the September quarter, MMG said
on Oct 26.
• Gome expects better full-year profit (19th November)
Gome Electrical Appliances Holdings Ltd yesterday said it expects to come in with better
full year numbers and open more outlets next year, as the electronics retailer continued to
benefit from its store restructuring plan and various other cost control measures.
Speaking to newsmen Chen Xiao, president of Gome, said revenue during the third
quarter of the year rose 2.85 percent to 10.97 billion yuan compared with 10.66 billion
yuan in the previous quarter. Net profit for the period was 385 million yuan.
The company said revenue for the nine months ending Sept 30 rose 13.64 percent to
31.43 billion yuan over the same period last year. Net profit, however, fell in the nine
months by 39 percent to 965 million yuan from a year ago.
"Our decision to optimize the store network has paid off," said Chen.
Denying claims that the company's sales recovery was aided by the government's subsidy
program for appliances, Chen said it accounted for just 10 to 15 percent of the total sales.
During the nine-month period, the company closed down 158 less profitable outlets and
opened 41 new stores to improve its operational efficiency.
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The average earnings of a single outlet in the third quarter rose 2.05 percent year-on-year
to 14.4 million yuan, the first growth since the fourth quarter of 2008, the company said.
However, Liang Ying, an analyst from China Merchants Securities, said the company's
performance is actually lower than expectations.
"Earnings from convertible bonds contributed to a big part of the earnings," Liang said.
She said fees collected from suppliers have been declining and could have a negative
impact on future earnings.
The company had earlier reported a half-year net profit of 258 million yuan, down 59
percent over the same period last year. Revenue during the period fell 18 percent to 20.5
billion yuan.
Chen said the company has managed to come out of the woods as net profit for the
January-June period jumped nearly 66.67 percent from the July-December period in
2008. He said the first half numbers were slightly impacted due to the higher provisions it
had to set aside for store restructuring.
Lu Renbo, an analyst from Research Institute of Market Economy, the State Council, said
the company has improved its performance with better management and outlet
optimization. "What the retailer needs to do now is to revamp the products at its outlets,"
he said.
"The existing line of products offer little margins for Gome. It needs to be more creative
and rejig its product line up with higher margin products. Although Gome's products and
categories per sq m is still the highest in the country it still is not on a par with
international standards," he said.
Gome was founded by Huang Guangyu in Beijing in 1987. The company was listed on
the Hong Kong Stock Exchange in 2004. In November 2008, the bourse suspended
trading in Gome shares after police revealed that Huang was under investigation for stock
manipulation.
Gome resumed trading in June and announced a financing plan of HK$3.23 billion and
also augmented capital several times.
• Optimism high as CCTV ad slots are snapped up (19th November)
Chinese entrepreneurs yesterday sent a strong signal that they have put the global
economic downturn behind them when they swarmed the China Central Television
(CCTV) building to splurge tens of billions of yuan on the network's prime-time
advertising slots for next year.
They were there as the national broadcast giant began its annual auction, raising bids
totaling 10.97 billion yuan ($1.6 billion) in about 13 hours. This year's bids were the
highest for 16 years, up 18.5 percent on last year's 9.26 billion yuan, said CCTV.
Sichuan-based alcohol maker, Langjiu Group, won yesterday's first bid, committing 33
million yuan for the exclusive right to have its name associated with the top scorer list
during next year's soccer World Cup in South Africa. Li Mingzheng, deputy general
manager of Langjiu, said the company spent 400 million yuan in total.
Chinese milk giant Mengniu was also one of the day's big spenders, shelling out 204
million yuan.
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Experts said the 2010 CCTV Prime Advertising Resource Bidding was an
indicator of the health of the Chinese economy.
Xia Hongbo, director of CCTV's advertising department, said: "The
auction is a sign of entrepreneurs' confidence toward next year's business
in the country. They are optimistic."
Several CCTV celebrity presenters helped announce the results of the
auction. Some said it was one of the most important economic stories of
the year.
Xia said household products and construction materials were the fastestgrowing sector of advertisers with total bids growing by 200 percent yearon-year.
Bids from the sellers of household electrical appliances grew by 80 percent and the auto
industry spent 70 percent more than last year.
Xia said 50 international companies took part. They spent 28 percent more than they did
in 2008.
Home appliance producer Midea paid 52 million yuan for a slot during the 2010 Chinese
New Year countdown, which is part of CCTV's Spring Festival Gala Evening.
Companies that bid for airtime were mainly enterprises depending heavily on people's
disposable income, such as home appliance firms, medical products sellers and the food
and beverage sector, said Yao Jinyuan, chief economist with the National Bureau of
Statistics.
Zha Wei, an industry insider and vice-president of FliMore Media, said: "As a national
television network, CCTV has advantages in certain genres, for example coverage and
credibility or authority, compared to local or provincial stations."
Zha added that CCTV had revamped its flagship news programs since June, which helped
it gain popularity.
Li Guangdou, a branding expert, said the cost of CCTV advertisements increased 20
percent year-on-year.
While many entrepreneurs complained about the soaring prices, Zha said companies were
still willing to pay because advertising slots with CCTV are relatively scarce.
Statistics from CSM Media Research show more than 72.8 million people watch CCTV
programming each day - seven times the audience for NBC Nightly News, one of the
highest-rated news programs in the US.
Some multinationals aggressively participated in the bidding. Industry analysts had
predicted they would keep away because of the global economic downturn.
• Power stocks boost mainland equities (19th November)
Chinese stocks rose, driving the benchmark index to its highest in more than three
months, as energy producers and utilities advanced after snowstorms boosted demand for
power. Real estate developers declined.
China Shenhua Energy Co, the nation's top coal producer, added 1.5 percent to 37.99
yuan and Shanghai Electric Power Co, which supplies the commercial hub, rose 6.7
percent to 6.25 yuan as some areas of the country experienced the heaviest snowfall in a
century.
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China Petroleum & Chemical Corp climbed 3.3 percent to 12.72 yuan and PetroChina Co
gained 1.2 percent to 14.01 yuan on speculation the government may speed up plans to
reform natural gas pricing.
Poly Real Estate Group Co, the nation's second-biggest developer, slipped 1.3 percent to
26.7 yuan after central bank advisor Fan Gang said the city of Shenzhen will introduce a
property tax. A measure tracking Shanghai-traded property stocks is the only one that
dropped yesterday among the five industry groups.
"Power producers are benefiting from increased electricity demand due to the cold
weather," said Liang Yumei, Beijing-based analyst at Shanxi Securities Co.
The Shanghai Composite Index advanced 20.35, or 0.6 percent, to 3,303.23 at the close, a
fourth day of gains and the highest since Aug 6. The measure has rallied 19 percent this
quarter, the world's second-best performer.
Stocks on the index trade at 35.02 times earnings, almost three times last year's low.
"The domestic market looks pretty fairly valued at the moment," Chris Ruffle, China cochairman in Shanghai of Edinburgh-based Martin Currie, which manages $19 billion,
said in a Bloomberg Television interview yesterday.
The CSI 300 Index added 0.1 percent to 3,630.23, while the Shenzhen Composite Index
rose 0.3 percent to 1,188.47, rising for 14 consecutive days. That's the longest winning
streak since Bloomberg began to track the measure in 1992.
Hang Seng declines
Hong Kong stocks dropped after central bank advisor Fan Gang said the nation is among
the emerging nations facing risks of market bubbles.
Hang Lung Properties Ltd fell 3 percent to HK$30.95, leading property shares to the
steepest decline on the Hang Seng Index.
The Hang Seng Index slid 0.3 percent to close at 22,840.33, reversing a gain of as much
as 0.8 percent.
Shares in the Hang Seng Index trade at 156 times estimated cash flow for this year,
compared with 8.9 times for the Shanghai Composite Index and 9.6 times for the
Standard & Poor's 500 Index in the US, according to data compiled by Bloomberg.
The Hang Seng China Enterprises Index fell 0.3 percent to 13,688.01.
• Phone giant bullish on 3G adoption (19th November)
China's largest cell phone operator, China Mobile, said yesterday that 3 million users
were likely to subscribe to its third generation (3G) service by year-end and that the
company was still in talks with Apple Inc to sell iPhones in the world's largest mobile
phone market.
Wang Jianzhou, chairman of China Mobile, said in Hong Kong that the company
expected 3 million subscribers to use its TD-SCDMA service by next month, nearly
double the 1.66 million users it had in September.
He said China Mobile's 3G network was expected to expand to 238 cities by the end of
this year, covering 70 percent of the country's area.
On the sidelines of a conference yesterday, Wang also confirmed that the company was
still in talks with Apple to sell the iPhone in China, although its rival China Unicom,
which launched its WCDMA-based 3G service one month ago, had already started
shipping the popular smartphone in the country.
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"We would like to make the (handset) market more diversified and encourage all handset
vendors to sell more models," he said, according to a report in the Wall Street Journal.
China Unicom has been criticized for selling the smartphone at an unreasonably high
price. The company reportedly sold only 5,000 iPhones during the first weekend of debut.
But the company's chairman Chang Xiaobing told reporters on Tuesday he expected the
device to become the country's top-selling smartphone.
Ever since the Chinese government gave out the long-awaited 3G licenses this year,
China Mobile, China Unicom and China Telecom have been actively deploying their 3G
networks, in hopes that the new service, which enable data-heavy applications such as
mobile Internet, online games and mobile TV, could help compensate declining revenue
from their traditional voice services.
Chang from China Unicom told reporters yesterday that the average revenue per user for
its 3G service was touching the 100-yuan ($14.65) mark, more than double that of its
GSM service.
"We recognize clearly that it is difficult or even impossible to boost per-unit spending in
the voice market," Reuters reported Chang as saying.
According to figures from the National Bureau of Statistics, China's mobile subscribers
surpassed 710 million by August, with China Mobile taking up over 70 percent of the
market share.
Experts said China Mobile's dominant position is expected to be challenged by its two
smaller rivals in the 3G era, as the company was ordered to adopt the homegrown TDSCDMA standard, a less mature technology, for its 3G network.
Wang from China Mobile said yesterday that the company has invested 80 million yuan
in handset subsidies last year and the number was expected to touch 120 million yuan this
year as mobile phone vendors lacked incentives to develop a handset based on its TDSCDMA standard.
Michael O'Hara, chief marketing officer of the GSM Association, told Reuters in an
interview yesterday that China Mobile was expected to accelerate the deployment of
fourth-generation mobile technology, long term evolution (LTE).
"China Mobile will be an early adapter. We expect China Mobile to do (LTE) trials in
2010, and deployment in 2011," he said.
China Mobile has previously confirmed that it would build an LTE network in Shanghai
when the World Expo takes place there next year.
• Relaxed dollar curbs, rally prompt new share accounts (19th November)
Investors opened more accounts to trade local and foreign-currency shares in China as
benchmark indexes extended a rally and regulators relaxed restrictions on buying dollars.
New brokerage accounts for dollar-denominated B shares jumped 68 percent to 1,366 in
the week ending Nov 13 from the previous week, according to clearing house data. That's
the most in three months.
Accounts for yuan-denominated A shares rose to 304,698 from 299,891.
The Shanghai B-Share Index jumped 14 percent last week, the biggest gain in a year, as
the State Administration of Foreign Exchange said it will allow more institutions across
the country to offer currency exchange services. The shares also rose on expectations that
the government will resume the yuan's appreciation.
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"The rally has been drawing new investors into the market," said Wu Kan, a Shanghaibased fund manager at Dazhong Insurance Co, which manages about $285 million. A
rising yuan and improving economy would help push stocks higher, he said.
B shares, which can only be bought and sold by domestic individuals and overseas
investors, are traded in US dollars in Shanghai and Hong Kong dollars in Shenzhen. A
higher yuan against the dollar would boost the value of the stocks' assets because they are
denominated in the Chinese currency.
Twelve-month non-deliverable forwards for the yuan strengthened 5.6 percent to 6.6235
per dollar. The contracts show traders are betting on a 3.1 percent advance in yuan in a
year from its spot ate of 6.8265.
For both A and B shares, investors opened 306,064 stock accounts last week, the most
since the five days ending Sept 25 and rising for a fifth week.
The benchmark Shanghai Composite Index has gained 18 percent this quarter, the
second-best performer among 89 global benchmark indexes tracked by Bloomberg, as the
nation's economy strengthened and the government said it will continue a "moderately
loose" monetary policy.
Still, investors have yet to flock to the market in the numbers seen in July, when 700,617
accounts were opened in a single week. New accounts dropped as the Shanghai
Composite plunged 22 percent in August amid concern the government would remove
stimulus measures. The gauge remains 5.2 percent short of this year's peak on Aug 4.
• Slight rise in US debt not a sign of new strategy: Experts (19th November)
Despite worries about the value of its foreign assets, China increased its holdings in
United States Treasury securities in September by $1.8 billion.
The increase bumps the nation's Treasury holdings to $798.9 billion from $797.1 billion
in August. The latest monthly figures in the Treasury International Capital (TIC) report
for September, released on Tuesday, indicates that China remains the world's largest
holder of Treasury bonds.
Meanwhile, US economists estimated China holds roughly $1.5 trillion in US assets, at
least 65 percent of China's total foreign assets, according to the US Council on Foreign
Relations, a nonprofit and nonpartisan organization.
In contrast with China's small increase of US debt in September, the Treasury report
showed foreigners bought $133.5 billion in US bonds in September, the most since
October of last year.
Net foreign purchases of long-term securities were $40.7 billion in September from a
revised $34.2 billion in the prior month, but foreign holdings of dollar-denominated
short-term US securities decreased $11.8 billion.
For September, Japan's holdings of US Treasury securities rose $20.3 billion to $751.5
billion.
Other countries with large holdings of US Treasury securities also increased their
holdings in September with the UK's investment rising to $249.3 billion from $226.9
billion. The Treasury holdings of Brazil rose to $144.9 billion, from $137.3 billion in
August.
But the China's slow growth in US securities in September does not necessarily mean
China is on the way to reduce its US securities despite strong domestic doubts on the
large holding of US debts, analysts told China Daily.
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"The $1.8 billion is small compared with China's huge holdings of US debt," said Zhao
Xijun, a professor of finance at Renmin University of China. "It's very normal whether
China increases or decreases the US bonds, because the buying and selling is fluctuating
every month."
Increases in US holdings from other countries did not mean they were optimistic about
the US recovery as some American economists said recently, according to Zhao.
"It's just a result of different investment strategies taken by different countries," he said.
Although he suggested China should diversify its portfolio of foreign assets, the country
has few choices.
Li Wei, an analyst at Standard Chartered Bank, said: "The TIC report sometimes cannot
reflect the true figure since China often buys the US debt via agents in London." That
part is put under the name of the UK, Li said.
The real figure of China's holding of US securities may be $970 billion, according to
Standard Chartered Bank.
Given the fact that China bears the brunt of the dollar's weakness, it's unfair to criticize
the renminbi's exchange rate, said Yao Yang, a professor of economics at Peking
University.
"The US has argued that the Chinese currency is undervalued by as much as 40 percent
against the dollar, but in fact it is at most 5 or 6 percent," Yao said.
• Official Chinese paper spurns calls for yuan shift (19th november)
U.S. pressure on China to raise the value of its currency amounts to Washington
abdicating responsibility for ballooning deficits and would impede global economic
recovery, an official Chinese newspaper said on Friday.
The commentary in the overseas edition of the People's Daily is the latest jab in a quarrel
over the yuan <CNY=CFXS>, or renminbi, which the Obama administration says is held
artificially low to give Chinese exporters an unfair advantage, thereby distorting the
world economy.
The forthright rejection of those arguments in the mouthpiece of China's ruling
Communist Part is the latest sign that Beijing has no intention of bowing to outside
pressure.
Instead, it squarely lays the blame for the dollar's woes at Washington's door.
"In fact, harping on about the appreciation of the renminbi is an attempt to distract
attention and shirk responsibility, and to make other countries, including China, pay the
bill for the United States' gigantic trade and fiscal deficits," said the commentary, written
by Shi Jianxun, an economist at Tongji University in Shanghai.
"Without any doubt, appreciation of the renminbi would not help global economic
recovery, because for now this recovery is unstable, and the exchange rates of the world's
major economies should not suddenly change."
• China raises price of electricity for non-residential use (19th November)
China's National Development and Reform Commission (NDRC), the top economic
planning agency, Thursday announced a rise in the price of electricity for non-residential
use by 2.8 fen (0.4 U.S. cents) per kilowatt hour on average nationwide, as of Friday.
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Residential electricity prices would not be raised this time. However, they would be
charged on a progressive basis in the future, which meant prices would increase with
consumption, said Cao Changqing, director of the NDRC's department of pricing.
The price increase would promote energy conservation awareness and the building of a
resource efficient and environment-friendly society, added Cao.
China increased the price of coal-fired electricity, which power grid operators buy
from power plants, by 2 fen on average last August, in a bid to ease cost pressures for
power plants from rising coal prices.
However, the retail prices of electricity had not been raised since then, which resulted
in losses for grid operators, he said.
State Grid Corporation of China and China Southern Power Grid, the country's two
leading power grid operators, lost a total amount of 16.1 billion yuan over the first eight
months, the NDRC said in a statement on its website.
"If the electricity price could be raised by 1 to 1.5 fen per kilowatt hour, the State Grid
Corporation of China could make up the losses incurred in the first half of this year
within six months and have optimistic prospects for profitability," said Xie Dacheng, an
industry analyst with Guangdong-based Guosen Securities.
Official figures showed that China's power consumption in October rose 15.87 percent
year on year to 313.42 billion kilowatt hours, up for the fifth consecutive month since
June.
The progressive pricing mechanism for residential users would be carried out in line
with actual situations in different areas and after discussions and research, Cao said.
Residential electricity accounted for 12.8 percent of the country's combined power
consumption in the first half, according to the China Electricity Council.
China's non-residential electricity prices differ according to the area and sectors, but
are higher than the price of power for residential use.
For instance, electricity for residential use in Beijing was 49fen per kilowatt hour,
while that for agricultural use was around 52 fen per kilowatt hour, for secondary
industry use 76 fen per kilowatt hour and for commercial use 79 per kilowatt hour,
according to Beijing Electric Power Corporation.
Cao said the power price rise would not push up China's consumer price index (CPI), a
main gauge of inflation.
China's CPI dipped 0.5 percent year on year in October, while the producer price index
(PPI), a major measure of inflation at the wholesale level, dropped 5.8 percent in October
from a year earlier, according to the National Bureau of Statistics.
The electricity bill only accounted for a small share of household spending. Even after
the future rise in residential electricity prices, it would not add pressure to a CPI hike,
said Li Mingliang, an analyst with Shanghai-based Haitong Securities.
The residential power price was 50 fen per kilowatt hour on average nationwide last
year, lower than the non-residential power price, said the commission, without giving the
average non-residential power price across the country.
"As the electricity consumed by secondary industry, including mining, manufacturing,
building and construction sectors, accounted for more than 70 percent of the country's
total, non-residential power price rises will exert more influence on the PPI than CPI," Li
said. (1 yuan = 100 fen)
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• Chinese shares dip after electricity price increase (20th November)
Chinese equities ended five consecutive days of gains on Friday after the government
lifted electricity prices.
The benchmark Shanghai Composite Index was down 0.37 percent, or 12.27 points, to
close at 3,308.35. The Shenzhen Component Index fell 0.03 percent, or 4.4 points, to
close at 13,695.15.
Combined turnover jumped to 325.66 billion yuan (47.89 billion U.S. dollars) from
320.2 billion yuan on the previous trading day.
Nine of the 28 shares in the ChiNext market for start-up stocks were up.
"A small correction was good for the overall health of the market after it had gained
for three weeks in a row," said Zhang Zhaowei, analyst with the Guojin Securities.
The electricity price rise for industrial and business users, which was announced on
Thursday, was the first such move in 16 months and complied with the government's
pledges to liberalize resource prices to reflect market demand.
Power generators rallied on expected higher profits after the price hike while big
electricity consumers declined for rising production costs.
PetroChina Ltd., Asia's largest oil producer, fell 0.9 percent to 14.03 yuan. China
Petroleum and Chemical Corp., Asia's largest refiner, ended at 12.53 yuan, down 1.8
percent.
Leading power generators such as Huadian Power International Corporation Ltd.,
advanced 0.52 percent to 5.85 yuan. Huaneng Power International Incorporation, added
0.12 percent to 8.54 yuan.
Natural gas producers fell as an official with the National Development and Reform
Commission (NDRC), the nation's economic planning agency, said on Thursday that an
expected natural gas price hike would not come within the year.
Shaanxi Provincial Natural Gas Co., Ltd declined 1.75 percent to 23.60 yuan.
Changchuan Gas bucked the trend by rising 9.97 percent to 10.59 yuan on declining coal
prices
• China reaffirms efforts to revive world economy (20th November)
Chinese Vice President Xi Jinping on Friday pledged the country would work with other
governments to seek global economic revival and sustainable development.
Xi made the pledge in a meeting with visiting Italian Minister of Economy and Finance
Giulio Tremonti at the Great Hall of People.
"Thanks to economic stimulus packages and financial rescue measures in various
countries, the world economy has shown signs of revival, the financial markets have been
stabilizing and the international community has become more confident," Xi said.
The foundation of world economic recovery, however, was not solid and uncertainty
remained, Xi said.
Xi also reviewed the growth of China's ties with Italy, particularly the all-round
strategic partnership since 2004.
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China and Italy forged diplomatic relations in 1970 and both countries had deepened
political trust and shared similar views on regional and international issues.
He highlighted cooperation in trade, finance, science and technology, culture and
education, saying those efforts had been fruitful.
Tremonti praised China's measures to tackle the international economic downturn and
seek economic growth.
Tremonti said China's economic stability and growth contributed to the recovery of the
world economy.
• China's economy to expand 9.4% in 2010, report forecasts (20th November)
China's economy is forecast to grow more than 9 percent next year on the growth of
domestic consumption and improving exports, said a report released Friday by the
Beijing-based Renmin University of China.
The country's retail sales are predicted to increase 18.2 percent year on year in 2010,
boosted by domestic consumption and income growth, according to the report.
China's retail sales in October rose 16.2 percent year on year to 1.17 trillion yuan
(171.3 billion U.S. dollars), according to the National Bureau of Statistics (NBS).
The world economy would be on the revival track next year, but a solid recovery was
not an easy task, said Liu Yuanchun, vice president of the School of Economics of the
university and the compiler of the report.
Liu predicted that China's exports would rise 13.3 percent and imports 12.2 percent in
2010.
China's exports dropped 13.8 percent year on year to 110.8 billion U.S. dollars last
month, the smallest decrease in 10 months, while imports stood at 86.8 billion U.S.
dollars, down 6.4percent from a year earlier.
He urged the government to step up efforts on low-rent apartment construction next
year for urban dwellers.
The affordable housing program, approved in June, is aimed at providing
accommodation for 7.47 million low-income urban households from 2009 to 2011.
The report predicted that the world's third largest economy would expand by 8.56
percent this year.
China's gross domestic product (GDP) expanded 7.7 percent year on year in the first
three quarters, largely due to the massive stimulus package unveiled in November 2008.
The country's consumer price index (CPI), a main gauge of inflation, would dip 0.7
percent this year, according to the report.
China's CPI fell 0.5 percent year on year in October, said the NBS.
Other leading economists have also voiced optimism on China's economic prospects.
Fan Gang, director of the Beijing-based National Economic Research Institute of
China Reform Foundation, predicted Thursday in Hong Kong that the Chinese economy
could grow between 8 and 9 percent in 2010.
However, Fan warned that emerging markets were facing a risk of possible asset
bubbles given the international excessive liquidity.
173
Qiao Hong, a China economist at Goldman Sachs, forecast last week in Beijing that
China's economy would expand 11.9 percent year on year in 2010.
• China continues anti-dumping measures on some imported TDI (20th November)
China's Ministry of Commerce (MOC) announced Friday that it will maintain antidumping measures on some imported Toluene Diisocyanate (TDI) from Nov. 21.
The anti-dumping measures target TDI, a widely used organic compound in the
chemical industry, imported from Japan, the Republic of Korea, and the United States.
The period will be five years.
China launched anti-dumping measures on TDI from those countries in 2003 for a
period of five years, and launched an investigation into ending of the measures in
November 2008, on the request of some Chinese companies.
The MOC said that if China suspended anti-dumping measures on the material, the
domestic industry would continue to be harmed.
Philippine president praises Chinese entrepreneurs, role in world recovery (20th
November)
Philippine President Gloria Macapagal-Arroyo Friday said Chinese entrepreneurs have
played an important role to cushion the impacts of global financial crisis and help bring
the world out from recession.
Speaking to 3,000 businessmen gathering here for the biennial World Chinese
Entrepreneurs Convention, Arroyo said the Philippines and other economies with a very
big Chinese community weathered the crisis with greater resilience and the active
counter-crisis measures adopted, Chinese entrepreneurs is one reason why the world will
bounce back from the recession sooner.
"We are on a solid comeback," Arroyo said, adding that things could have been worse
if her government did not take the "unpopular but necessary" economic and fiscal reforms
several years ago. These reforms, Arroyo said, were strongly supported by the country's
influential Chinese business community.
Arroyo said every entrepreneur has experienced the devastation of the setbacks in the
world economy and her government's commitment is to learn from the mistakes to make
sure the crisis would never happen again.
Arroyo said the presence of 3,000 Chinese entrepreneurs from 20nations and regions
shows the vitality and promise of a strong world business community that can help
breathe new life into the world's economy.
Since its birth in 1991, the World Chinese Entrepreneurs Convention has served as a
leading forum for Chinese businessmen around the world. With the theme "World
Prosperity through Chinese Entrepreneurship," this year's conference focuses on
cooperation to get through the financial crisis and to explore ways for sustainable growth
of the private sector.
•
•
China's oil producer signs agreements with Sudan on refinery expansion, asset
swap (20th November)
China National Petroleum Corporation (CNPC), China's biggest oil and gas producer,
has signed agreements with Sudan to expand a refinery and swap oil production assets.
according to a statement on the company's website Friday.
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The refinery, based in Khartoum, in which CNPC and Sudan each have equal stakes,
would undergo a second expansion, but the statement did not give details.
The refinery was established in 1997 and began production three years later with a
designed annual processing capacity of 2.5 million tonnes. It was expanded in 2006. It
processes annually 5 million tonnes of oil, and supplies 80 percent of the refined oil in
Sudan.
CNPC would partially swap a shareholding in Block 6 with Malaysia's Petroliam
Nasional Bhd's Block 5A in Sudan, according to the statement, without giving details.
The company also announced it had signed an agreement with the Sudanese
government on advance payment for crude oil supplies.
CNPC has eight oil projects in Sudan, covering areas such as geophysical prospecting,
well drilling, construction, and pipelines.
•
China telecom sector reports nearly 700 bln yuan in main business revenue by
Oct. (20th November)
China's telecom industry reported 698,9 billion yuan (101 billion U.S. dollars) in main
business revenue for the first ten months this year, up 3.4 percent year on year, according
to a statement Friday by the Ministry of Industry and Information Technology.
To breakdown, business revenue of wireless telecommunications took 60 percent share
while those for fixed-line business and data communications took 28 percent, and 12
percent share, respectively.
The ministry also released subscriber data which showed more and more Chinese
people are choosing mobile phone services while fixed-line subscribers are decreasing.
The number of fixed-line subscribers was down by nearly 19 million for the first ten
months while mobile phone users were up by more than 88 million, reaching 730 million
by the end of October.
Total phone users reached 1.05 billion at the same period, according to the statement.
• China to float 15 bln yuan T-bonds next week (20th November)
China will issue 15 billion yuan (about 2.2 billion U.S. dollars) of short-term treasury
bonds next week, the Ministry of Finance said here Friday.
The book-entry treasury bonds, which is the 24th batch of its kind in the year, has a
term of 273 days, said the ministry in a statement on its website.
The T-bonds will be sold at an issue price of 98.979 yuan, with an annual interest rate
of 1.39 percent.
According to the ministry, a three-day sales will begin on Nov.23. The interests of the
bonds will be calculated on Nov. 23 and become tradable on Nov. 27.
• Tax-take from automobile industry surges in China (20th November)
Tax-take from the automobile industry has surged in the first 10 months this year as auto
production and sales were booming in the world's largest market.
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The State Administration of Taxation said Friday value added tax (VAT) paid by the
transportation equipment manufacturing industry grew 28.8 percent to 88.6 billion yuan
(13 billion U.S. dollars) during the period, and business income tax revenue was 30.7
billion yuan, up 29.6 percent.
Meanwhile, automobile acquisition tax revenue increased 6.3 percent to 91.2 billion
yuan, although taxation on the purchase of vehicles with engine displacements below 1.6
liters was reduced by half.
The State Council, or the cabinet, decided on the cut at the beginning of this year to
stimulate domestic consumption.
The China Association of Automobile Manufacturers estimated the tax cut had
contributed at least a 10 percent growth for the auto market.
Auto production and sales broke the 10 million mark in the first 10 months this year.
Official figures showed that China's auto sales reached 1.22 million units in October,
up 72 percent year on year.
• China Enterprises Index falls 1.05% (20th November)
The Hang Seng China Enterprises Index on the Hong Kong Stock Exchange fell 141.32
points, or 1.05 percent, to close Friday's trading at 13,329.66.
The H-shares index, initiated in August 1994 and readjusted on Sept. 7, 2009, tracks
the overall performance of 44 major Chinese mainland state-owned enterprises listed on
the Hong Kong Stock Exchange.
The Hang Seng China H-Financials Index dropped 199.68 points, or 1.07 percent, to
close at 18,510.51.
The H-Financials Index, initiated on Nov. 27, 2006, readjusted on Sept. 10, 2007,
tracks the performance of nine major banks and insurers of the Chinese mainland.
The Hang Seng Mainland Composite Index went down 37.06 points, or 0.88 percent,
to close at 4,159.36.
Introduced on Oct. 3, 2001 with the latest readjustment effective on March 9, 2009, the
Hang Seng Mainland Composite Index gauges the performance of 132 Hong Kong-listed
companies with principal places of business in Hong Kong and the Chinese mainland.
The Hang Seng China-Affiliated Corporations Index moved down 30.03 points, or
0.72 percent, to close at 4,133.47.
The index tracks the performance of 34 locally listed companies with a significant
equity interest held by entities in the Chinese mainland.
• ChiNext stock index down (20th November)
The ChiNext Index fell on Friday as 19 out of the 28 shares at China's start-up board for
small and medium-sized enterprises were down.
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The board, which is based in Shenzhen and started trading on Oct. 30, 2009, is tailored
to the needs of enterprises engaged in independent innovation and other enterprises with
great growth potential.
• Changes in laws will help protect wages: Trade unions (20th November)
All-China Federation of Trade Unions, China's semi-official umbrella for workers, urges
legislators to revise laws to guarantee that Chinese workers are paid for their work, and
that employers who do not pay face harsher penalties.
The push comes as a result of ongoing problems with employers who renege on paying
those who worked for them, and employers who vanish without a trace, leaving workers
unpaid. The problem is especially bad for migrant workers.
Li Shouzhen, spokesman of the federation, said as the year-end is approaching, cases of
default on payments may rise. The federation will join hands with the government and
carry out a special inspection to check payment of the migrant workers from Nov 15 to
Feb 5, 2010.
Moreover, the federation is working with related authorities to set up and improve the
mechanism to ensure wage payment, he said.
"The federation is suggesting adding provisions to the Criminal Law to punish the
activities of malicious back pay or absconding without paying wages," Xinhua quoted Li
as saying.
Chinese Labor Law prohibits defaulting of wages without reason.
However, employers who are caught not paying wages on time are required to pay the
wages, plus a "compensation fee" to the workers.
However, with no penalties such as being fined by the government or jailed, the law lacks
a strong deterrent, experts say.
The federation's proposal came after an employee was threatened when she asked for her
payment.
Wang Hongli, a sales manager with a private company in Hangzhou, capital of East
China's Zhejiang province, and her husband were beaten and stabbed when they went to
the company to ask for 26,000 yuan ($3,800) in an unpaid bonus on Oct 31.
Wang recorded the confrontation as evidence. Her boss threatened to rape her and cut off
her hand and leg in the recording.
The event gained nationwide attention, and once again sounded the alarm for wage
protection.
The lack of penalties in the law is why employees who demand their wages can easily run
into problems, said Chen Bulei, a researcher of labor issues at Beijing-based Renmin
University of China.
"Current law lacks constraining force. It depends on the employers' law-abiding
awareness or morality to pay the wages on time," he said.
The key point is to enact a clear definition of "malicious back pay," said Yang Tuan,
vice-director of the social policy research center under the Chinese Academy of Social
Sciences.
"Some employers like Wang's boss deliberately default on wages. They recklessly violate
the workers' interests and have no respect for the law. They should be punished by law,"
she said.
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Other employers cannot pay the wages due to temporary poor business, especially amid
the global economic recession. In those cases, the government should shoulder the
responsibility to help pay part of the wages, Yang said.
"Governments' allowance could alleviate the companies' burden, give them hope for
recovery, and can also keep jobs for the workers," she said.
• China rejects call for WTO panel on export limits (20th November)
China on Thursday rejected requests made by the United States, the European Union and
Mexico to establish a WTO expert panel to investigate and rule on so-called Chinese
restrictions of raw materials exportation.
At a meeting of the WTO's dispute settlement body, the Chinese delegation reiterated that
"its measures related to exportation are consistent with the principles and rules of the
WTO," and the country "consistently respects and abides by the WTO rules and its own
commitments."
"China is disappointed that the three complainants choose to move forward with requests
for panel establishment at this meeting ... and is not in a position to agree to the
establishment of a panel at this time," the delegation said.
The United States has accused China of restricting exports of "numerous raw materials
critical to US manufactures and workers," thus violating WTO rules. The materials at
issue include coke, bauxite, fluorspar, magnesium, silicon metal and zinc.
The EU joined the United States in filing WTO complaints on the matter in June, and
they were later joined by Mexico.
Two rounds of consultations were held in July and September between China and the
three complainants, but they failed to resolve the problem.
Requesting a panel is the next step in the WTO dispute settlement process after
consultations fail. According to procedures, a panel request can only be blocked once,
and if the three complainants choose to made a second request at a later date, a panel
would be set up automatically.
• Malaysia oks license to China's largest commercial bank (21st November)
Malaysia has approved a commercial bank license to the Industrial and Commercial Bank
of China Ltd. (ICBC), China's largest commercial bank, the Malaysian central bank said
here on Friday.
Bank Negara Malaysia, or Malaysia's central bank, said in a statement issued here on
Friday that the Malaysian Finance Ministry had approved the issuance of a commercial
bank license to ICBC.
The licence followed a bilateral arrangement between the China Banking Regulatory
Commission and Bank Negara Malaysia, as well as between the governments of the two
countries earlier this year, said the bank.
It is part of a very limited number of banking licences issued by Malaysia from time to
time under a bilateral arrangement, it added.
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Such bilateral arrangement can only be set under such pre-determined criteria as the
level of trade and investment linkages, the extent of existing participation of the country
in the Malaysian financial sector, the value add it would contribute to the overall
development of the Malaysian financial system and the economy, said the bank.
At present, the Bank of China, another major commercial bank of China, has branches
in Malaysia.
• China needs national plan to boost consumption: expert (21st November)
High savings and weak consumption was still the main structural problem for China's
economy, and the country needed to craft a national plan to boost consumption and adjust
the economic structure, an expert had said.
In an interview run by the China Securities Journal on Saturday, Xia Bin, a researcher
with the Development Research Center, a think-tank under the State Council (cabinet),
said China's GDP growth in 2010 would mainly rely on expanding domestic demand.
"In the first three quarter this year, net exports drag down GDP growth by 3.6
percentage points. Next year, whether net exports will make positive contribution to GDP
growth remains a challenge," he said.
So, China needed a consumption-oriented structural adjustment plan in order to help
the economy further expand domestic demand, especially residents' consumption, Xia
said.
The Chinese economy needed unparalleled growth of consumption, which had never
been seen in the past more than 10 years, to make up for slump exports and weak private
investment, he said.
According to Xia, such a national plan should include measures and incentives to spur
residents' consumption, reduce saving ratio among companies and governmental
departments, raise individual income and put dividends of State-owned company shares
into fiscal budget.
China's GDP expanded 7.7 percent year on year in the first nine months this year.
According to the National Bureau of Statistics, consumption in the first three quarters
contributed 4 percentage points to GDP growth while investment accounted for 7.3
percentage points. Net exports had an adverse impact on the economic growth.
• Profits of China's central SOEs more than doubled in Oct (21st October)
Profits of China's state-owned enterprises (SOEs) administered by the central government
more than doubled in October from a year ago after months of declines, a senior official
said here on Friday.
The 132 central SOEs reaped a profit of 79.5 billion yuan (11.64 billion U.S. dollars)
in October, up 151 percent year on year, said Huang Shuhe, deputy director of the Stateowed Assets Supervision and Administration Commission (SASAC) at the 2009 Annual
CEO Forum.
In October, revenues surged by 22 percent from a year ago to nearly 1.16 trillion yuan,
Huang said.
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Their profits during Jan-Oct was 633.8 billion yuan, while revenues amounted to 9.83
trillion yuan during the same period.
Huang also noted 24 central SOEs had entered the rank of Fortune 500 companies.
"China's companies still face difficulties and great challenges due to roaring raw
material prices, huge environmental pressure and rampant protectionism triggered by the
financial crisis," he said.
He said the companies should further enhance independent innovation, improve
corporate governance and accelerate the pace of "go global" to compete with foreign
brands.
• China is dynamo of world economy: ECLAC (21st November)
China is a dynamo of the world economy and is playing a central role in helping a global
economic recovery, said Alicia Barcena, executive secretary of the Economic
Commission for the Latin America and the Caribbean (ECLAC), on Friday.
"China is part of the world trade of wheat, rice, soya, sugar and others, playing a very
important role in the increase of those product exports. The same happens in the case of
the minerals and oil," Barcena told Xinhua in an interview.
He said China is one of the most important market for Latin American and the
Caribbean products.
"China is being a blessing for the exports of raw materials from Latin America and the
Caribbean. But it is also a great exporter (to the region). So, it competes with the
countries of this region, mainly with Mexico and the Central American nations," said
Barcena.
Trade between China and Latin America has grown tremendously, he noted.
He said Mexico, for example, is beginning to see China as a partner rather than a
competitor.
Mexico has given priority to trade relations with China. As a result, the Asian country
is now the fifth largest overseas market for Mexican products.
Meanwhile, South America has also improved ties with China.
"All producers see the opportunity of reaching the Chinese market," said Barcena
• China Unicom bullish on iPhone sales (21st November)
China Unicom, the nation's second largest cell phone carrier, said on Friday it expects
nearly 10 percent of the third generation (3G) users in the country to switch to Apple
Inc's iPhone in the next couple of years.
Tian Wenke, general manager of corporate business department of China Unicom, told
China Daily that the smartphone has already evoked good interest from business users.
"We expect nearly 10 percent of China's 3G users to buy iPhones," Tian said at an
industry forum in Hangzhou.
The number of 3G users in the country is expected to reach 16.2 million by the end of
next year, according to figures from research firm Wireless Intelligence. Li Yizhong,
minister of the industry and information technology, had earlier said China plans to have
around 240 million 3G users by 2012.
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On Tuesday China Unicom Chairman Chang Xiaobing said he expects iPhone to become
China's best-selling smartphone.
Unicom was reported to have sold fewer iPhones than analysts' expectations after its
debut last month, raising concerns that the high prices may deter customers from buying
the smartphone.
Tian, however, dismissed such charges. He said the pricing of the phone is "very
reasonable for those who spend heavily on their phone bills every month".
According to the company, an iPhone without a service contract costs as much as 6,999
yuan ($1,025) in China, compared with $299 in the United States.
The product will be free when customers select a two-year service plan that costs 886
yuan per month.
The company had signed up only 5,000 iPhone users after the first two days of its debut
last month. In comparison, nearly 1 million units of the smartphone were sold in the first
three days when the latest model was launched in North America and Europe in June.
China Unicom also feels that if it were to price the iPhone lower, then users would buy
the handset, but run it on the network of its rival carrier China Mobile, which has a nearly
70 percent share of China's mobile market.
Many Chinese users are hesitant to subscribe to China Unicom, as they want to retain
their original phone numbers, which is not transferable, according to the current
regulation.
An analyst from one of the world's biggest market trackers feels that sales of iPhone are
expected to touch 60,000 to 70,000 in China this month. He expects iPhone to account for
nearly 5 percent of China's smartphone market by next year. "But the product's further
growth will be largely limited due to China Unicom's high pricing," said the analyst, who
declined to be named.
Wang Yuquan, a senior consultant from research firm Frost & Sullivan, said Unicom's
pricing of iPhone is too high even for business users in China. He said such a pricing
strategy, as well as lack of WiFi function, would spur grey market sales of iPhone in the
country currently estimated at around 2 million units.
Since its debut in 2007, iPhone now has a 17.1 percent share of the global smartphone
market in the third quarter of this year, according to research firm Gartner.
That makes it the third largest cellphone provider after Nokia and Blackberry maker
Research In Motion (RIM).
China Unicom had 1.02 million 3G subscribers as of the end of October, the company's
Hong Kong-listed arm said in a regulatory filing on Nov 19.
• Listed banks may need 300b yuan in capital, says BNP Paribas (21st November)
China's 11 largest publicly-traded banks may need to raise about 300 billion yuan by
selling shares and bonds to ensure they have adequate capital for credit growth, according
to BNP Paribas.
The lenders would need as much as 368 billion yuan to keep their capital ratio at 12
percent, BNP said in a note to clients on Friday. Bank of China Ltd, the nation's thirdlargest by market value, would need 137 billion yuan.
The government has encouraged a $1.3 trillion credit boom this year to complement its
monetary and fiscal stimulus plans, propelling the economy last quarter to its fastest pace
of growth in a year.
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China Minsheng Banking Corp on Thursday raised HK$30.1 billion to plug a shortfall,
and China Merchants Bank Co aims to sell shares by year end.
With expectations of "fast loan growth and balance sheet expansion in 2009/10, banks
will likely need to raise new capital to meet regulator's higher capital-adequacy
standards", analysts led by Dorris Chen wrote.
"Potential equity/hybrid debt raising could pose a sector overhang in 2010/11."
The China Banking Regulatory Commission said in September it plans to tighten capital
requirements for banks by capping cross holdings of subordinated bonds. The regulator
also tightened lending requirements on loans for fixed-asset investments and mortgages
to avoid misuse of funds.
China Minsheng, the nation's first privately owned lender, raised funds in Hong Kong's
biggest public share sale since April 2007. China Merchants aims to sell as much as 22
billion yuan in shares in a rights offer by the end of the year, President Ma Weihua said
last week.
The credit expansion has led housing prices to post their biggest gains in more than a year
and aided an 82 percent climb in the Shanghai Composite Index of stocks.
China may need to rein in credit growth to tame inflationary pressures and keep asset
bubbles from emerging as growth accelerates, the Organization for Economic
Cooperation and Development said on Thursday.
New loans are expected to be 7 trillion yuan in 2010, BNP estimated, after climbing to
8.9 trillion yuan in the first 10 months of this year.
Social front
• Google to talk with Chinese authors over copyrights (15th November)
Search engine giant Google is to send a representative to China next week to talk with the
country's copyright watchdog to cool down Chinese authors' heated complaints against
the company over copyright violations, said a Google senior executive Sunday.
Daniel Alegre, Google's vice president of Asia Pacific Sales & Operations, told Xinhua
on phone that he is not sure about whom but someone will go to China to "communicate"
further with China Written Works Copyright Society (CWWCS) next week.
According to a rough estimate from CWWCS, nearly 18,000 books from 570 Chinese
writers have been scanned by Google and included in its digital library, Google Books,
opening only to Internet users in the United States. Most of the writers were not informed
nor paid.
"So far, no writers we reached said he or she has authorized Google to do the
scanning," said Zhang Hongbo, deputy director-general of CWWCS.
Google's infringement of Chinese authors' rights is very severe, Zhang said.
Daniel said it was understandable that Chinese authors were dissatisfied over the
scanning of their works. He continued, due to the huge amount of books scanned, it was
difficult to contact every author.
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Internet users will only be able to find the books via Google, not for reading or
downloading free of charge, Daniel added.
Google and copyright organizations, such as the Authors Guild and the Association of
American Publishers, submitted a revised settlement agreement Saturday to a U.S. court.
But Daniel said the settlement does not apply to China, meaning Google will have to
negotiate with Chinese authors in a separate case.
Google wished to communicate with a wider range of copyright organizations at the
same time, Daniel added.
• Experts call for better media literacy education on Chinese youth (15th November)
China should strengthen media literacy education on children to enhance the
development of both domestic and global citizenship, according to an action plan made
on Saturday at the second international forum on media literacy education.
More than 20 scholars from British, Japanese and Chinese universities discussed on the
topic of "media literacy and citizen's development", and worked out the action plan.
It also urged researchers on media literacy education to try to make relevant courses be
included in curriculums of primary and high schools in China.
The forum was organized by the Communication University of China. Yuan Jun, Vice
President of the Communication University of China, said media has been playing a more
and more important role in the development of citizenship.
"Modern education should take the approach of realize a citizen's development through
media literacy education," Yuan said.
Media literacy generally refers to the ability to access, understand and create
communications in a variety of contexts.
• Kids picked for dream prize (16th November)
Ten children from around the world, including two Chinese, have been selected as
Universal Dream Kids for their bravery, environmental awareness and drive for
education.
The selection is part of a global campaign launched by Xinhua News Agency and the
United Nations Children's Fund to mark the 20th anniversary of the adoption of the
Convention on the Rights of the Child by the UN on Nov 20, 1989.
• Passenger numbers soar as Xiamen boosts crossings (16th November)
Xiamen is playing an increasingly important role in passenger transportation between the
mainland and Taiwan.
At present, the major connection across the Straits is by ship and plane. According to the
Xiamen Port Authority, the number of passengers traveling between Xiamen and
Taiwan's Jinmen increased by 39.88 percent year-on-year. The number involved
exceeded one million over the past 10 months as communication between the mainland
and Taiwan becomes ever closer.
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Direct journeys between Xiamen and Jinmen began in January 2001. By the end of
October this year, the total number of passengers had reached 4.36 million, according to
the Fujian Communications Department.
As a response to the increasing demand, Xiamen Port added four more daily voyages as
of mid-July this year, bringing the number of daily crossings to 32.
Currently, the city is looking at ways to improve its crossing facilities. According to Liu
Cigui, mayor of Xiamen, the city will expand the waiting room area of its passenger
terminal to 16,000 sq m and add more ships to its fleet to meet growing demand.
The expansion project, with a total investment of 35 million yuan, will be completed in
2010. This will raise the throughput capacity of the terminal to one million passengers a
year.
In August and September this year, Xiamen also opened regularly scheduled direct
sailings from the city to the Taiwan ports of Penghu, Taichung and Keelung. This
initiative is a bid to boost the numbers of mainland passengers looking to travel to
Taiwan via Xiamen.
Xiamen Airlines is the only airline company headquartered in Xiamen. During the
process of establishing regular direct flights between the mainland and Taiwan, the
company made a remarkable contribution.
As early as 2006, the company began to organize cross-Straits charter flights during the
Spring Festival. In Dec 16, 2008, Xiamen took the lead among mainland airline
companies and established an office in Taiwan.
On August 31, regularly scheduled direct Cross-Straits flights were inaugurated. Xiamen
Airlines is now responsible for 11 flights a week from Xiamen, Fuzhou, Hangzhou and
Changsha on the mainland to Songshan and Taoyuan in Taiwan.
Compared with some other airline companies providing Cross-Straits flights, Xiamen
Airlines does not provide as many flights, but it has a number of advantages that other
companies lack.
There is only the Straits between Xiamen and Taiwan, ensuring that people on either side
have much in common, including language and food. The company selects stewardesses
who can speak Taiwanese to provide services during the flight.
Meanwhile, Xiamen local food and tea, hugely popular in Taiwan, are provided.
Passengers can even enjoy tea-making ceremonies on board.
In May of this year, the State Council, China's cabinet, approved suggestions by Fujian
province to accelerate the development of the Western Straits Economic Zone, designed
to develop the Taiwan-oriented economy.
The adoption of the policy brings unprecedented opportunities for Xiamen Airlines,
according to Che Shanglun, general manager of the company.
In addition to the city's accomplishment in establishing direct voyages between Taiwan,
there is also great potentials for Xiamen to combine air and voyage services and attract
still more passengers to travel between the mainland and Taiwan via Xiamen.
Xiamen Airlines is now preparing for these future opportunities. In October the company
reached an agreement with the Export-Import Bank of China. As a result of this, the bank
will provide $260 million to fund the company's purchase of 20 additional planes before
2015.
• Touch of magic (16th December)
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According to the Ministry of Public Security, more than 50 million foreigners exit or
enter the country on average every year, while another 5 million live here. Of these, about
half-a-million call China home.
Many have enriched Chinese lives with their contributions in business, education,
medical care and disaster relief.
China Right There, a recent bilingual documentary on Tianjin TV highlighted the lives of
100 expatriates who have been living here since the founding of New China in 1949. The
crew traversed the length and breadth of the country recording their everyday lives.
Now, 13 of them have been picked to be honored with the "You Bring Charm to China"
award, presented jointly by Tianjin TV and Hong Kong-based Phoenix TV, and
supported by China Daily.
The awards were presented on Saturday at Kerry Centre Shangri-La Hotel, witnessed by
representatives from the United Nations, leaders of China's major diplomatic institutions
and by distinguished overseas Chinese.
Domestic and overseas artists put up a gala show and the whole ceremony was broadcast
live to audiences at home and abroad.
• Shared ancestry forges Straits ties (16th November)
Xiamen and Taiwan may be separated by the Taiwan Straits, but civic and governmental
communications, in terms of culture, sports and education, are forging strong links
between the two.
The people of Xiamen and Taiwan share a common ancestry. Among the 23 million
Taiwanese on the island, 80 percent can trace their forefathers back to Fujian province,
Xiamen included. Every year many Taiwanese return to the mainland to meet their
relatives and honor their ancestors.
At present, there are nearly 10,000 Taiwanese people working and living in Xiamen.
Residents from the Jinmen county of Taiwan have purchased around 10,000 apartments
in the city. In Xiamen's universities, high schools and primary schools, more than 1,300
students are from Taiwan.
In order to celebrate those Taiwanese individuals who have made a remarkable
contribution to Xiamen's economy and society, the city made four Taiwanese Citizens of
Honor awards on Oct 28. Since the Citizens of Honor program was established in 1996,
35 Taiwanese have received the title, accounting for 23.5 percent of the total.
During the 5th Cross-straits Economic, Trade and Cultural Forum held in Changsha, the
capital city of Hunan province, from July 11 to 12, the mainland and Taiwan reached 29
agreements, with some 17 of them concerning cultural exchange between the two.
During recent months, Xiamen has held a series of activities in line with the agreements
reached during the forum.
The city held the Second Cross-straits Cultural Industries Fair between Oct 28 and Nov 1
this year. The fair featured 1,146 exhibition stands, among which were 385 from Taiwan.
Around 1,000 businesses from the mainland and the island showcased their products and
services at the event, including the making of cartoons and films, PC games, TV,
traditional arts and so on.
During the fair, 82 agreements were reached with a total contract value of 8.7 billion
yuan, a 47.46 percent increase over the previous year.
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Besides exhibitions and sales, the fair also staged performances and singing competitions,
altogether attracting more than 300,000 visitors. In addition, forums were held to discuss
future cooperation in the cultural industries between the mainland and Taiwan.
According to Zhao Shaohua, vice-minister of culture, cultural industry participants on
both sides of the Straits should work together to develop Chinese culture and increase its
profile on the global stage.
The city also held the Fifth Cross-Straits Book Fair from Oct 30 to Nov 1. Around 400
mainland-publishing firms presented 375,000 books from 150,000 categories, whilst 210
publishing firms from Taiwan showcased 90,000 books from 30,000 categories,
including fiction, history, law, medicine and tourism.
Sales during the three-day fair exceeded the 40 million yuan mark, among which sales of
Taiwanese books accounted for six million yuan.
On Aug 15, 100 participants - 50 from the Chinese mainland and 50 from Taiwan - swam
across the Straits between Xiamen and Taiwan's Jinmen. This was the first sports event of
its kind that the two parties have ever held and was a bid to strengthen mutual
understanding.
On the educational front, Xiamen University will continue to enroll postgraduate students
from Taiwan in 2010. The university started to enroll Taiwanese students in 2003. So far
more than 400 students from Taiwan have studied in the university.
As early as in 2004, Xiamen University and the National Chengchi University in Taiwan
exchanged teachers and students. For the first time, the credit mainland students received
in the Taiwan university was recognized by mainland universities and vice versa.
• Terracotta warriors on display in US (18th November)
A terracotta warrior is on display at the press preview of Terracotta Warriors: Guardians
of China's First Emperor, exhibit at The National Geographic Museum in Washington
November 17, 2009. The exhibit includes 100 sets of objects, with 15 terracotta figures,
the greatest number of warriors ever to travel to the United States.
• Universities in Taiwan open doors to mainland (19th November)
Taiwan universities plan to admit mainland students for the first time next year, a Taiwan
official said yesterday.
Students from 41 mainland universities recognized by Taiwan authorities are expected to
start enrolling as early as next year, island-based United Daily quoted Taiwan's
"education minister" Wu Ching-ji as saying.
Taiwan universities can offer up to 2 percent of their available places to mainland
students.
The plan followed talks between the mainland and Taiwan last year, when they inked
deals to forge closer trade ties and agreed to promote educational exchanges.
However, Taiwan will not admit mainland students who study medicine, including
Western and traditional Chinese medicine, Wu said.
The decision was reached after research and discussion with Taiwan's health authority, he
said.
He also noted that Taiwan would not recognize the teacher training certification of
Beijing Normal University and East China Normal University, which are among the 41
mainland universities.
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"We have six or seven Taiwan students enrolled to study Western medicine every year," a
teacher at the Peking University Health Science Center, surnamed Li, told China Daily
yesterday.
"I heard one Taiwan girl who graduated from our university last year got a job in a
hospital in Fujian province," she said.
"Many of them prefer to work in the mainland, and a few will further their studies
abroad," she said.
A teacher at Beijing University of Chinese Medicine, surnamed Ji, said Taiwan students'
passion to study traditional Chinese medicine on the mainland never fades.
"Though the policy in Taiwan is not flexible for medical students, our university still has
266 undergraduate students from Taiwan studying right now," she told China Daily
yesterday.
Li Zhu, the chief of EIC, a university application agency, said that their Guangzhoubased institution had launched a program to help mainland students apply for further
education in Taiwan next year.
"Our marketing research nationwide shows positive feedback about this program," he
told China Daily yesterday.
The tuition fee in Taiwan would be a little lower for mainland students than Hong Kong
universities, he added.
Mainland universities began to enroll Taiwan students in 2006. At present 6,755 Taiwan
students are studying in 187 universities on the mainland.
• Babies, toddlers may get vaccine shots after trials (19th November)
China hopes to be among the first countries ready with an A/H1N1 vaccination program
for babies and children aged 6 months to 3 years.
The vaccine, which has already been administered voluntarily to around 17 million
people in China, is currently unavailable to the under-3s on safety grounds.
But Beijing says it is now ready to start testing its home-grown vaccination on the under3s in a bid to protect as many people as possible at a time when the pandemic is picking
up steam and sickening more and more people nationwide.
Last week alone, the virus killed 28 people across the country.
Trials on babies and children could begin within the week, said Liang Xiaofeng, director
of the Chinese Center for Disease Control and Prevention (CDC)'s immunization center.
"Experts are scheduled to meet on Thursday (today) to discuss details, such as the dosage
and frequency of jabs that would provide children with full immunity against the virus,"
he told China Daily yesterday.
About 13,000 volunteers took part in the initial trial of the vaccine several months ago
but Liang said trials before rolling out the vaccine to the under-3s would likely be on a
smaller scale.
The H1N1 vaccination program began in late September. Out of the millions vaccinated
so far, two people reportedly died after receiving shots. The government said the deaths
were coincidental and not linked to the vaccine.
"The vaccine has proven to be safe and effective," said Zhao Kai, leader of the team of
experts responsible for the H1N1 flu vaccine and a member of the Chinese Academy of
Engineering.
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"Most of the 1,000 strong adverse reactions were, in fact, no stronger than a sore arm or a
low fever," Zhao said.
Unlike the seasonal flu, which is more likely to strike the elderly, the H1N1 virus has
been hitting younger adults and children particularly hard, international studies indicate.
Feng Zijian, director of the emergency response department affiliated to the CDC, told
China Daily there have been H1N1 deaths among children under 3 but he declined to
give a number.
According to clinical trials in the US, babies and small children would need two doses of
the vaccine, instead of the single dose given to adults, because the immune systems of
children are less developed.
The Ministry of Health said last week it will soon consider making the vaccine available
to pregnant women because they are understood to be particularly vulnerable to the
potentially lethal disease.
If they are infected, pregnant women are also at a much higher risk of developing a
severe illness and dying, researchers said.
However, Liang said a trial of the vaccine among pregnant women has been ruled out for
the moment.
As of Monday, China had reported 69,160 H1N1 cases on the mainland, including 53
deaths.
More than half of the deaths happened between Nov 9 and Nov 15.
• GSK may shift some Relenza manufacturing to mainland (19th November)
British drugmaker GlaxoSmithKline (GSK) Plc is planning to move part of its flu
drug Relenza manufacture to China to better support the local market.
"I hope that we will be able to shift some Relenza manufacture to China to make our
products more accessible in the country," said Chief Executive Andrew Witty.
The drug, which received the State Food and Drug Administration (SFDA) approval
in September for domestic sales, is used to fight the flu virus along with Roche's
Tamiflu.
Welcoming the Chinese government's speedy approval for Relenza in the country,
Witty said GSK is the only firm that produces both vaccines and drugs to tackle
H1N1 flu.
GSK has adopted a three-pronged strategy to tackle the epidemic, said Witty. Apart
from producing the vaccine, the company is also making anti-viral face-masks, and
anti-viral medicines such as Relenza.
The company plans to ship nearly 450-500 million doses of its anti-H1N1 flu vaccine
and sell 60 million packs of Relenza globally from this quarter to next year.
The CEO said GSK's joint venture with a Shenzhen-based pharmaceutical firm would
"help bring more of GSK's technologies to China".
GSK inked a deal with Shenzhen Neptunus Interlong Bio-tech in early June to
develop flu vaccines for the Chinese market and invested $35.3 million for a 40
percent stake in the new venture.
"The joint venture with Neptunus, which focuses on flu vaccines will hopefully in the
future create greater domestic capability," he said.
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GSK also signed a deal with Yunnan Walvax Biotech in October to co-launch a
company that focuses on vaccines for kids, with an initial investment of 451 million
yuan from the two companies.
Witty said the company is now putting more emphasis on its vaccine and consumer
goods businesses and focusing on emerging markets like China, Brazil and Russia.
"We have a leadership position in vaccine and consumer products. What I want to do
is to build these two businesses so that the three main arms of pharmaceuticals,
vaccines and consumer goods, can complement each other. That way we would be
able to mitigate our risks and deliver consistent and sustainable growth," he said.
Emerging markets like China offer immense potential for growth due to the rapid
development of the healthcare sector, he said.
"It's an easy decision to prioritize here as I've spent most part of career in emerging
markets like Asia and Africa," said Witty.
The company is enhancing its investment in China by increasing the amount of R&D
investment and employing more people to work with hospitals, apart from forging
partnerships with local companies, he said.
"In reality, for GSK, the center of gravity is moving to the east."
GSK has so far invested $400 million and has around 4,000 employees in China.
• Mainland's last D-Day veteran dies at 91 (19th November)
Huang Tingxin, the Chinese mainland's last veteran of the D-Day campaign to end
the Nazi domination of Europe in 1944, has died at 91.
Huang, who died last Wednesday, was made a Chevalier of the National Order of the
Legion of Honor in 2006, France's highest recognition of merit.
Upon receiving the medal, Huang said: "The honor goes to all the Chinese soldiers
who fought there."
Huang's body was cremated and buried in a local cemetery on Sunday.
A graduate of the Qingdao Naval Academy in East China's Shandong province in
1942 at the age of 24, Huang and 23 other young naval officers went on to study and
later fought in Britain.
After training at Royal Naval College in Greenwich, London, Huang was deployed as
a deputy watch officer on United States-manufactured 10,000-ton escort carrier HMS
Searcher, which carried up to 25 fighter aircraft, in March 1944. His duty was to
make sure the ship maintained course and remained in formation.
Huang saw active duty when the vessel took part in the invasion of Normandy on DDay, June 6, 1944. He also fought at a landing operation with the Allied forces at
southern France's Toulon on Aug 15, 1944.
"My part on the ship was not much," Huang recalled in an interview with Xinhua in
2006. "Some other Chinese soldiers fought on the front line. One of my comrades
showered thousands of artillery shells on the Nazi defenses."
Huang returned to China in 1948 and served in the PLA navy after the founding of
the People's Republic of China. He left the navy 10 years later and taught at Zhejiang
Sci-Tech University (ZSTU) until retirement.
"We are all impressed by his diligence and sense of responsibility in his work, be it
teaching English or managing the foreign books," Jin Jingru, deputy secretary of the
ZSTU Party committee, told Xinhua the day before Huang's death.
189
Huang kept a low-profile and seldom talked about his life in the navy. He started to
dictate his war experiences to his son, Huang Shansong, only when he was confined
to bed by Parkinson's disease.
"My father dictated what he saw in war-shattered Europe so as to remind us of the
cruelty of war and the preciousness of our peaceful life," said Huang Shansong,
holding the 60,000-word transcript, on Tuesday.
"His contribution to world peace might be trivial, but he played his part. In peacetime,
he led a plain, but happy life and saw the development of our country.
"I think it's in the spirit of the Chinese people - willing to die for the greater good
when occasion demands, while appreciating the plain peacefulness of everyday life,"
Huang Shansong said.
Mao Luqiong, a student at ZSTU, on Tuesday recalled the words of Huang, "I wish
the word 'war' to be a historical term and remain so forever."
• Nation vows to topple illegal timber trade (19th November)
The top forestry administrator of China, the world's biggest importer of timber, has urged
nations to step up their fight against illegal logging.
Jia Zhibang, head of the State Forestry Administration (SFA), said China has been
cracking down hard on illegal logging and illegal trade of timbers.
"China now has no (massive) smuggling of timber," he told China Daily on the sidelines
of a press conference by the State Council Information Office on Tuesday. "Countries
with timber should step up the fight against illegal activities."
He made the remarks when asked to comment on the accusation made by an overseas
environmental organization based in Europe that China has been smuggling timber from
neighboring Myanmar.
According to a report released by the organization, China and Myanmar have made
progress in tackling illegal logging but must do more to stamp out corruption fueling the
illegal trade.
China cut its timber imports from Myanmar by 70 percent between 2005 and 2008, but
trade was still thriving because of bribery, falsified documents and poor law enforcement,
the report said.
The report said the United States, Japan, the United Kingdom, France, Germany, Italy,
Canada and Russia were the chief exporting destinations of timber, used mostly for
making furniture.
Jia pledged to continue cracking down on illegal timber trade.
He admitted, however, that China, as the world's biggest wood-processing manufacturer
and wood furniture exporter, has a big gap in supply and demand despite soaring number
of imports and increasing areas of forestry each year.
In 2007, imports of timber and pulp reached 150 million cu m, he said.
From 2006 to 2010, the country has seen a shortage of timber of 150 million cu m. It will
have 230 million cu m from 2011 to 2015, Jia told China Daily.
To meet the soaring demand, the country needs to hasten the planting of trees, the official
said.
China's forest coverage reached 20.36 percent at the end of last year, beating a goal of
creating a 20-percent coverage by 2010, said an SFA's survey released on Tuesday.
President Hu Jintao said at the Asia-Pacific Economic Cooperation forum in September
2007 that the country's forest coverage would reach 20 percent by the end of 2010.
190
"It shows that China's forestry has grown steadily in quality and quantity," said Chen
Xiaoqian, forestry policy expert with the Nature Conservancy.
China's forested area reached 195 million hectares by the end of last year.
Jia said the figure was an increase of 20.54 million hectares from 2003's figure of 175
million hectares.
In China, a forest refers to woods covering an area more than 1 mu (0.667 hectares) with
crown density - the measure of skylight blocked by plant material - at or above 20
percent, according to the SFA.
Manmade forests saw a net increase to 8.43 million hectares from 2004 to 2008 and cover
an area of 62 million hectares, topping any other country in the world.
However, China still faces major problems on forest protection and management, such as
increased occupation and requisition of forest-land as well as illegal deforestation, Jia
said.
China is endeavoring to increase forest coverage by 40 million hectares by 2020 as a way
to offset greenhouse gas emissions, Hu said at a recent United Nations climate change
summit.
But with no legislation on banning imports of timber without legal sources, China has
allowed wood imports as long as they have trade permits issued by authorities in the
country of origin.
• Xinhua to live broadcast Global News Day for Children (20th November)
Starting from 8 a.m. (Beijing time) Friday, Xinhua will work with all participating media
organizations to launch a 24-hour multimedia "relay" coverage of "Global News Day for
Children" on six continents.
"Global News Day for Children" is a global media campaign co-sponsored by Xinhua
News Agency and the United Nations Children's Fund (UNICEF), to mark the Universal
Children's Day which falls on November 20.
It will be the first joint international media campaign to advocate children's rights.
Global media will, for the first time, report at the same time on the same topic. All
reports about the event will be available on the official website.
The official website (http://www.xinhuanet.com/english/ucd/index.htm) for the
campaign and news reports (http://www.chinaview.cn/ucd2009) sponsored by Xinhua
News Agency provides a comprehensive coverage in Chinese and English of the current
situation of children worldwide, as well as all activities held to commemorate the 20th
anniversary of the UN's Convention of the Rights of the Child (CRC) on Universal
Children's Day
• Don't hide virus truth, local officials told (20th November)
The Ministry of Health (MOH) yesterday vowed to punish officials who underreport the
H1N1 flu pandemic following criticism from a prominent medical expert who cast doubt
on China's official death toll from the disease.
Some medical experts have wondered aloud whether the country's H1N1 data matches
the reality. They pointed to limitations in medical capacity and the fact that hospitals are
not testing everyone with flu symptoms for H1N1 as reasons why the outbreak may have
been underreported.
191
But Zhong Nanshan, a Guangzhou-based doctor famous for his candor in exposing a
cover-up of the SARS epidemic in 2003, took concerns a step further, suggesting some
local governments had deliberately concealed suspected cases.
"I just don't believe that there have been 53 H1N1 deaths nationwide," Zhong told the
Southern Metropolis Daily. He said the number could be far higher.
The MOH reported that there had been 69,160 H1N1 cases on the mainland as of
Monday.
In the article, Zhong said some parts of the country - he would not say which parts - were
not testing severe pneumonia deaths to see if they were, in fact, H1N1 deaths.
MOH spokesman Deng Haihua responded by saying that anyone found concealing,
underreporting or delaying the reporting of details about the pandemic would be
punished.
Deng also invited the public and the media to oversee the transparent and timely
reporting of the H1N1 situation.
Vivian Tan, press officer with the World Health Organization's (WHO) Beijing office,
said WHO staff are not able to say whether claims of deliberate underreporting at the
local level are accurate.
"We know the MOH has been urging local health authorities to report H1N1 cases in a
transparent way and we do not suspect deliberate underreporting from the ministry," she
noted.
She suggested that the country should focus its resources on monitoring bigger trends and
unusual developments, as well as treating severe cases and continuing the vaccination of
as many people as possible.
Meanwhile, nine special teams of MOH officials have been sent to 12 provinces including Hebei, Shanxi, and Qinghai - to inspect local pandemic control work,
particularly the treatment of severe cases.
Feng Zijian, director of the emergency response department under the Chinese Center for
Disease Prevention and Control (CDC), said that H1N1 cases are too plentiful to count
and noted that the testing of every flu patient for H1N1 was not necessary.
Feng conceded that there likely have been more H1N1 infections and deaths nationwide
than has been reported. But he criticized Zhong for his claim of a cover-up.
"China is huge and its medical resources are not evenly distributed," Feng said. "It is
understandable that medical workers in some areas have failed to report the pandemic
accurately."
As in many other countries, China is not able to diagnose and record every H1N1 case,
some experts have said, noting the fact that some people with H1N1 could conceivably
stay at home and not seek medical help.
The US Center for Disease Control estimated that the number of H1N1 infections in the
US was 140 times the official number.
Cover-ups during the SARS epidemic reportedly led to the sackings of several top
officials, including the then health minister and mayor of Beijing. More than 300 people
died in that outbreak.
Going forward, Deng said the government will strengthen supervision of pandemic
reporting.
Experts said that will happen if communication between the local and central health
departments is improved.
192
As of Wednesday, more than 18.2 million people had received a free vaccination against
the virus, the ministry added
• Google pledges only booklist in copyright row (21st November)
Google on Friday agreed to provide a list of Chinese books it had scanned to put up in its
digital library, but it still refused to admit having "infringed" upon copyright laws.
Late last month, the China Written Works Copyright Society (CWWCS), which protects
Chinese writers' copyrights, said Google had scanned 18,000 books by 570 Chinese
writers without authorization for its library, Google Books, which is available only to
Internet users in the US.
After Friday's second round of talks with CWWCS, Lin Ling, a public relations officer
entrusted by Google to deal with the case, said no remarkable progress had been made,
except that the booklist would be provided in December.
Zhang Hongbo, deputy director-general of CWWCS, said another round of talks would
be held with Google China, the search engine giant's subsidiary on the Chinese mainland,
early next month.
Erik Hartmann, the Asia-Pacific head of Google Books, will shift base from Singapore to
Beijing, to handle the negotiations, Zhang said. The first round of talks was held on Nov
2.
Contemporary authors such as Han Han, Chen Cun, Xu Kun and Zhang Kangkang are
among those whose works have been copied for the search engine giant's website.
In China, the term of protection for the right of publication (which normally belongs to
the writer) is the lifetime of an author and 50 years after his/her death. In case of a work
by two or more writers, the term expires after the 50th year of the last surviving author's
death.
On Wednesday, the Chinese Writers' Association (CWA), a partner of the CWWCS,
joined the fight against Google and urged it to resolve the dispute as soon as possible.
"The CWA will resolutely safeguard authors' rights," it said.
It demanded that Google provide a full list of Chinese authors' books it had scanned
before Dec 18 and present a plan to resolve the issue by the end of the year.
It asked Google not to scan any more Chinese works without permission.
Google's Book Search program, for which the search engine giant is scanning hundreds
of thousands of books and placing parts of their contents online, has met with legal
challenges in other countries as well.
•
Hollywood showcases more Chinese elements as an emerging China becomes
more acceptable: analysts (21st November)
Analysts said that China, with its soaring economic and social achievement, had become
more acceptable for American society, which could be reflected by more Chinese
elements
shown
in
Hollywood
productions.
The U.S. President Barack Obama has just paid a state visit to China during his first year
in office, during which Obama and his Chinese counterpart President Hu Jintao agreed to
jointly
promote
the
Sino-American
relations.
The Hollywood, as an entertainment vane of the American society, reacted to a growing
193
China even earlier than President Obama's visit. Two days before Obama's arrival in
China, Hollywood's latest disaster movie, "2012", debuted on screen in cinemas around
the
country.
In the movie, China and the United States were portrayed as two crucial partners which
jointly deal with their common challenge, world-ending catastrophe.
China also becomes the last place of salvation for the human beings for the first time in a
Hollywood
disaster
theme
movie.
Chinese analysts said that the changing image of China in Hollywood movies could
reveal that the country, with a rising international status, become more acceptable for
American
mainstream
society.
Zhang Yiwu, a cultural scholar with Peking University, said that from "Kong Fu Panda"
to "2012", Chinese image has never been so popular and it could reflect the American
people
are,
to
some
degrees,
accepting
China's
influence.
The movie's scenes containing pro-China messages, such as a U.S. military officer saying
that only the Chinese could build an ark of such a scale on time, have been welcomed by
Chinese
netizens.
"I feel very proud to hear such surprising lines in a Hollywood movie," said a netizen
with
an
Internet
name
of
yexinlianyi
on
www.douban.com.
The movie's lines such as "The Party and government will help us rebuild our homes"
embodies a typical Chinese language style.
Ethnic issues
Environmental front
•
APEC leaders back delaying climate deal (16th November)
Leaders of the 21-member Asia-Pacific Economic Cooperation (APEC) said yesterday
that they are committed to work towards an "ambitious" outcome on an upcoming major
UN climate change conference but leaders dropped a specific target to cut greenhouse gas
emission in a joint declaration issued before the group's two-day summit concluded.
State and government leaders threw support behind a proposed two-step plan for
December's climate talks in Copenhagen that would leave legally binding agreements
until later.
"Anthropogenic climate change is one of the biggest global challenges. It will impact
each of our economies," the APEC leaders' declaration said, adding: "We...reaffirm our
commitment to tackle the threat of climate change and work towards an ambitious
outcome in Copenhagen."
Leaders from about 190 countries are expected to attend the UN Copenhagen conference
from Dec 7-18. The meeting is expected to lay the ground for renewing greenhouse gas
194
emissions reduction targets set by the Kyoto Protocol before they expire in 2012. The 21member APEC accounts for approximately 60 percent of the world energy consumption.
But APEC leaders pulled back from putting a time-frame to reach the 50 percent
emission cut target by 2050 as appeared in the draft declaration.
"There was an assessment by the leaders that it was unrealistic to expect a full
internationally legally binding agreement to be negotiated between now and when
Copenhagen starts in 22 days," a top US negotiator, Michael Froman, told reporters in
Singapore.
The proposal - spelt out to the leaders by Danish Prime Minister Lars Lokke Rasmussen would pave the way for a political accord in Copenhagen and put tortuous haggling over
commitments on a slower track, but still with a deadline.
"Given the time factor and the situation of individual countries we must, in the coming
weeks, focus on what is possible and not let ourselves be distracted by what is not
possible," Rasmussen told the meeting.
"The Copenhagen Agreement should finally mandate continued legal negotiations and set
a deadline for their conclusion," added Rasmussen, whose presence at the Asia-Pacific
summit in Singapore was a last-minute surprise.
Diplomats said the two-track approach would give breathing space for Washington to
clear political hurdles over climate change legislation.
It would provide time for the US Senate to pass the climate bill in the first part of 2010,
allowing the administration to bring a 2020 target and financing pledges to the table
during a major UN climate meeting in Bonn in mid-2010.
Chinese President Hu Jintao urged progress on the developed world offering funds and
technology. Stressing that China will continue to take strong measures to contribute its
share to the international efforts against climate change, Hu said developed countries
should accept deep cuts and the developing world should contribute according to each
nation's ability.
Two-step approach binding
The latest draft APEC leaders' statement has removed an earlier reference to halving
emissions by 2050.
Rasmussen stressed in his comments to the Asia-Pacific leaders that a two-step approach
would not lead to a partial agreement and would be binding. "We cannot do half a deal in
Copenhagen and postpone the rest till later," he said. "I do not share the view that it will
be possible in Copenhagen to do some parts of the deal and not the other. We need the
commitments. We need the figures. We need the action."
• China awaits US climate pledge (17th November)
United States President Barack Obama will likely head to meetings this month with
President Hu Jintao with a fuzzy bottom line about what the US will agree to at
December's international climate change summit in Copenhagen. As the two leaders
prepare to talk today, the chances of the US passing climate change legislation - the key
to the US' negotiating position at the summit - seem slim.
While the US Congress debates a pair of bills, China and the rest of the world are waiting
to find out what to, if any, greenhouse gas emissions caps the US will commit. Experts
say if Washington does not pass either bill before the Dec 7-18 Copenhagen conference,
the US will not agree to any firm numbers. In 1997, the US went to the Kyoto summit
195
without any pre-approved figures from Congress, and Obama doesn't want to be in the
same situation this time around.
On Nov 5, House Democrats passed through committee the Kerry-Boxer climate change
bill that would mandate cuts in greenhouse gas emissions by 20 percent from 2005 levels
over the next decade. The American Clean Energy and Security Act, approved by the
House in June, would reduce emissions 17 percent by 2020. By 2050, both would cut
emissions by 72 percent.
Chances for Congress to pass any legislation before Copenhagen are slight, many have
said.
"The fact that Congress is really focused on healthcare and most of our committees are
really focused on healthcare, it's hard to imagine being able to move something as big as
climate change in that time frame," said Taiya Smith, a senior associate in the Carnegie
Institute's Energy and Climate Programs.
In recent published reports, Obama's climate envoy Todd Stern quashed the idea that the
meeting between Hu and Obama will produce a substantial early accord.
Julian Wong, a senior policy analyst at the Center for American Progress, agreed.
"There may be some cooperation but not some sort of back-door, side deal on climate and
carbon emissions targets," Wong said.
This past summer and again in early fall after Hu and Obama talked by phone, there were
numerous reports that the two countries would come to some kind of bilateral agreement
during their November talks. But experts say the two are only beginning to understand
each other's issues.
"I really hope that when President Obama and President Hu meet, they're able to deepen
that understanding and have some sense of where these two countries want to get. But
that's different than signing, bilaterally, something that's subject to a multilateral
agreement," said Deborah Seligsohn, the China program director for the World Resources
Institute's Climate, Energy and Pollution Program.
The US wants to start fresh without a Kyoto-based agreement. Developing countries want
a Kyoto-II-type deal and the Europeans are hoping for something in between, Smith said.
The best possible, most likely scenario for Copenhagen, whether or not the US has
legislation to take with it, would be a framework, not a fleshed-out agreement, that would
address the following issues:
Caps on emissions for developed nations like the US;
Eventual caps on emissions by large, developing countries like China; and
Monetary compensation for smaller, undeveloped countries for lost shoreline and other
land, and population relocation.
"I think Copenhagen will not necessarily be the be-all and end-all. What will make
Copenhagen a success is if the members of the convention agree to the architecture of an
agreement," Wong said.
A bare-bones pact would buy the US and others more time. Numbers could be filled in
until 2012, when Kyoto Protocol expires. Any cap-and-trade agreements would also
likely be postponed until then.
Without any climate change legislation to bring to the table, the US will have to tout the
fact that it's at least working on it, but the lack of firm commitments still puts the country
in a position to be blamed if talks break down.
196
"It's looking less and less likely that there will be a final bill passed by mid-December so
in terms of what the US parties need to do in Copenhagen is try to communicate the fact
there is progress being made in Congress," Smith said. "But not having legislation puts
the specter of the US being blamed for Copenhagen not producing a global deal quite
high."
In the meantime the US is trying to "manage expectations" to try and prevent a blame
game, according to Smith, even as other stakeholders such as those in European countries
pin their hopes on Obama.
"Awarding Obama the Nobel Peace Prize appears to be a not-so-subtle hint that they
want to see Obama take action. But that type of a hint misunderstands how the US system
works," Smith said. "It really is beyond the control of the administration at this point to
ensure Congress comes up with legislation."
• Shrinking major lake a victim of drought (17th November)
Dongting Lake, the nation's second largest freshwater lake, has decreased by more than
90 percent compared with its average capacity during the flood season, a local official
said.
Presently the lake's total volume is about 770 million cu m, less than 10 percent of the
average volume during the flood season, said Jiang Yimin, director of Hunan provincial
environmental protection bureau, to the Economic Information Daily yesterday.
The lake is located in the middle reaches of the Yangtze River.
Successive years of drought in the upstream areas have led to the lake's low volume, it
reported.
Water levels at the Songzi, Hudu and Ouchi rivers, three tributaries of the Yangtze River,
have dropped since 1974.
The lake's water area, which spans Central China's Hubei and Hunan provinces,
measured about 538 sq km in mid-October, only 40 percent of its capacity in September,
Xinhua reported.
The operation of the Three Gorges reservoir has exacerbated the drought, leading to a
decrease in water flow into the lake, the newspaper quoted anonymous experts as saying.
In the 1950s, about 150 billion cubic meters of water flowed from the Yangtze River into
Dongting Lake each year. From 1990 to 1998, the annual flow into the lake was lowered
to 88 billion cu m. Water flow into the lake was merely 1.53 billion cu m from September
to October in 2006, the report said.
The lake's water volume dropped again after the project on the Three Gorges reservoir
began to raise the reservoir's water level since mid-September.
The water level at the reservoir had been scheduled to reach its peak of 175 m by the end
of October but the original plan was postponed due to the severe drought that struck the
vast areas in the middle and lower reaches of the Yangtze River.
The drought has caused wetland areas to shrink around Dongting Lake, reducing the
lake's self-cleaning capacity. It has also affected local agricultural production and
drinking water safety.
China has more than 24,800 natural lakes, but they are disappearing at a rate of about 20
every year, Xinhua reported this month.
•
Suntech gets grant for solar projects (17th November)
197
Chinese solar panel maker Suntech Power confirmed it had received a subsidy for
developing 20 percent of the 91 megawatts (mW) of solar projects under the central
government's solar rooftop program.
It is estimated that Suntech will get a subsidy of 1.4 billion yuan under the solar rooftopplan, part of China's efforts to encourage the development of solar industry.
Zhejiang-based solar firm Chint Solar Technology has also been granted subsidies that
the company CEO said could save costs to the tune of nearly 50 percent.
"With government subsidies, we could expect an 8 percent return on investment
annually," said Chint Solar Technology CEO, Yang Liyou.
China is accelerating solar power development by identifying 294 pilot projects with a
total generating capacity of 642 mW under its newly launched plan "Golden Sun",
signaling another step for the applications of solar technology.
These projects are expected to cost around 20 billion yuan and would be ready for use in
two or three years, the Ministry of Finance said on its website.
Among the 294 pilot projects, Henan and Zhejiang province contributed 31 programs
respectively, followed by Jiangsu and Anhui province.
The capacity will be nearly 30 percent more than the 500 mW target China set in July
when it launched the "Golden Sun" plan. China is likely to triple the target to 1,500 mW
by 2015, an official from the Ministry of Science and Technology said recently.
"This has been the government's second round of subsidy for solar firms, which will
subsidize half of the investment cost," said Li Junfeng, deputy director general at Energy
Research Institute of National Development and Reform Commission (NDRC).
The finance ministry is encouraging firms to apply for subsidies and has laid out specific
price and quality requirements for parts and components in the qualified solar power
projects.
China initiated the solar rooftop plan in the first half of this year, in which the
government is providing subsidies for buildings with solar roofs, while the golden sun
plan focuses on subsidizing solar power plants.
• Worries rise about level of dam water (17th November)
Plans to raise the water level behind China's massive Three Gorges dam to full capacity
this month, which would mark the symbolic culmination of the decades-old project, have
stalled amid a worsening drought and reports of increased landslide risks.
The world's largest hydroelectric project has been built to end centuries of floods along
the basin of the Yangtze River and to provide energy to fuel the country's economic
boom.
Along the way officials have often steamrolled over complaints about the enormous
environmental impact of the mammoth $23 billion, 660-km-long reservoir that displaced
more than 1.4 million people.
Dam authorities had been increasing water storage since Sept 15, with the goal of
reaching the maximum height of 175 m by early November, when the dam would be fully
capable of generating the maximum amount of power. But on Nov 2 the water reached
171 m and then abruptly stopped rising.
The explanation given by dam officials is that too little water is flowing from the upper
reaches of the Yangtze - 34 percent less than last year - coupled with a deepening drought
in the downstream provinces of Hunan and Jiangxi.
198
A spokesman for the State Council committee overseeing the Three Gorges project
acknowledged last week it would be "difficult" to raise the water level to its peak height.
"Under the current conditions, less water is coming from the upper reaches and more
water is needed to be released to the lower reaches to ease the drought situation. So it's
difficult to reach that level," he said, declining to be named because he wasn't authorized
to speak on the subject. He gave no timetable for when the maximum height would be
reached.
The tacit postponement has also come amid urgent reports warning of heightened
landslide risks.
Last week, investigative magazine Caijing revealed a report issued by a Chongqing
political consultative body that warned that the risks of geological disasters, such as
landslides, would increase as the water rose to its apex. It also said that the rising water
levels were also reviving old landslide fissures as the soil around the dam became more
saturated and unsettled.
The Caijing report also cited a pre-flood inspection this year by officials in the Wanzhou
district of Chongqing, the megacity near the reservoir, which identified nearly 700 areas
vulnerable to geological damage, 587 of them possible landslide spots.
Yang Yong, a Sichuan-based geologist who has followed the dam project closely, said he
believes the renewed threat of geological disasters may have been serious enough to
delay the final phase.
"Dealing with drought is a quite obvious reason, but I suspect that the potential
geological threat is also a factor in stopping the water from rising," he said. "I think with
the rise of the water level, the geological movement around the area is becoming more
and more frequent. The government was quite aware of the problem."
Warnings had been voiced in the past about increased geological risks as water poured
into formerly dry slopes, causing serious erosion and seismic instability.
As the water level rises, it seeps into the soil along the reservoir, saturating and loosening
the bank slopes. The fear is that it weakens the ground soil to the extent that erosion and
collapse could occur.
The Three Gorges spokesman denied that geological risks played a factor in the delay,
saying landslides are "no big problem." But the continuing drought that has crippled large
swaths of southern and central China since August has brought pressure on dam officials
to release more water downstream, he said.
A more immediate reminder of the geological danger came last month. On the night of
Oct 16, officials in the township of Quchi near Chongqing issued an emergency notice
after a new fissure was discovered in an old landslide area on slopes above the town,
confirmed an official there surnamed Yang. The hairline crack was reportedly 400 m
long.
Experts had discovered cracks appearing in the walls of local homes, and dozens of
residents were immediately evacuated from the area that day. The local official said the
town had evacuated residents six or seven years ago from the same area.
Zhang Hua, a professor at the Research Center for Geo-hazard Prevention & Mitigation
Technology at China's Three Gorges University who investigated geological hazards in
the area in August, said he believes mitigation measures in place now provide adequate
protection for villagers who live near the dam.
199
But he acknowledged that "with the rise of the water, I can't rule out potential dangers,
which are hard to predict."
• Freeze is causing power outages (19th November)
Unusually cold weather and the resulting soaring energy consumption for heating have
caused power outages and shortages of natural gas in parts of central and eastern China.
The consumption surge, which began last week, is typical of the challenges the country is
facing as it struggles to meet the demand from consumers whose growing earning power
enables them to enjoy a more comfortable life, experts say.
Forecasters said the snow will end before tomorrow, but the strong gales that will follow
for the next three days will push the temperature down even further in the central and
southern area.
The eastern economic hub of Shanghai, which is experiencing its earliest winter in nearly
three decades, is facing a record potential shortage of 1.9 million kilowatts after the
sudden surge in demand caused four generating sets to malfunction, the city government
said in a notice on its website early yesterday.
Two generator sets resumed working later yesterday.
Power supply for some factories was cut off yesterday to ensure household use, said
Wang Changxing, an official with Shanghai Municipal Electric Power Company.
As the city's temperature dipped close to freezing yesterday morning, Shanghai's power
load reached 17.4 billion watts yesterday morning, four billion watts higher than over the
same day last year.
Cities across central and southern China face similar energy shortages after being hit by
the cold snap and, in some regions, unusually heavy snow.
Wuhan, a city in the middle reaches of the Yangtze River, yesterday suspended natural
gas supply to all industries and businesses to ensure residential consumption after its
worst snowstorm in 40 years.
The government said the city is facing a shortage of about 1 million cu m of natural gas.
The surge in demand is mainly due to increasingly popular gas-powered home water
heaters.
Homes in areas south of the Yangtze River have traditionally been unheated, but many
now have air conditioners and home water heaters.
Due to the energy shortage across the country, gas utilities were among yesterday's
biggest gainers in the stock market, with expectations that a price hike is coming. Shaanxi
Provincial Natural Gas increased by the 10 percent daily limit, and Changchun Gas also
rose 10 percent.
Analysts said further gains in the sector are likely, as demand is rising.
Coal shares also led the gains, partly because heavy snow has created difficulties in
transportation, analysts said. Many vehicles, loaded with coal, have been stranded in
mountainous areas in Shanxi for at least four days, local media reported yesterday.
Zhang Hongbin, an analyst with Shanxi Securities Co Ltd, was quoted as saying that
about half of the coal in the country is delivered by rail and the other half is delivered by
vehicles.
"The coal price is likely to rise if the weather continues to affect the transport system," he
was quoted as saying.
200
Besides rising coal prices, vegetable and pork prices have been increasing since last
Wednesday across the country, according to the Ministry of Commerce.
In Wuhan, the average price of vegetables was up 57 percent compared with the days
before the snow, local agricultural bureau officials said yesterday. In the southern cities
of Guangzhou and Shenzhen, vegetables, especially those transported from the north, are
also going for higher prices.
• China expects positive outcome in Copenhagen (20th November)
Chinese UN ambassador said here on Thursday that China hopes to see positive outcome
from the upcoming UN Conference on Climate Change scheduled for December 7 in
Copenhagen.
Addressing the informal meeting of the UN General Assembly on climate change, Zhang
Yesui, the Chinese permanent representative to the United Nations, said "the Chinese
government also hopes the conference can produce positive results."
He added that the upcoming Copenhagen conference will be "an important meeting of
climate change, for which the international community has great expectations."
At the UN Summit on Climate Change which opened here on 22, Chinese President Hu
Jintao dwelled on the Chinese government's stance on climate change, and announced
relevant measures to be taken by the Chinese government in response to this issue, Zhang
said.
In his address at the UN summit, President Hu said China will intensify efforts to
conserve energy and improve energy efficiency and try to cut carbon dioxide emissions
per unit of gross domestic product (GDP) by a "notable margin" by 2020 from the 2005
level.
The Chinese president also said China will further integrate actions on climate change
into its economic and social development plan.
"China will, as always, actively take part in the international negotiations and make its
due contributions to promoting the international efforts to tackle climate change," Zhang
said.
"We are convinced that the Copenhagen conference must adhere to the established
framework and principles," Zhang said.
The UN Framework Convention on Climate Change and the Kyoto Protocol should serve
as the main channel for the international community to address climate change, he said.
"The principle of the Common But Differentiated Responsibilities (CBDR) is the
universally recognized basic norm for tackling the issue," he said. "The Bali roadmap
clearly identifies the requirement and direction for international cooperation on climate
change."
These framework and principles are hard won and are the outcome of concerted efforts
by all parties concerned, he said. "Efforts should be made to adhere to the framework and
principles in order to pave the way for the success of the Copenhagen conference."
The Copenhagen conference must build upon and consolidate the consensuses reached so
far by the international community, he said.
During the previous negotiations, thanks to the arduous efforts by all parties concerned,
many important consensuses have been reached, including that the developed countries
will make continuous efforts to reach the ambitious mid-term goals of cutting the
emissions of greenhouse gas, and that that the developing countries, in accordance with
201
their specific national conditions, will try their best to decrease such emissions with
financial and technical support from the developed ones.
Also among the consensuses reached is that efforts should be made to set up an effective
mechanism, through which the developed countries can render financial support to the
developing ones, he said.
The effective mechanism should be put in place for the transfer of the environment- and
climate-friendly techniques to the developing countries to enhance their capacity to deal
with climate change, he said.
The international community should stick to the consensuses and work for greater
achievements in the next phase, he said.
"The Copenhagen conference is only about 20 days away, so let's strengthen our
confidence and cooperation and do the utmost to make the conference a success," he
concluded.
•
Chinese vice premier urges to upgrade polar exploration (20th November)
Chinese Vice Premier Li Keqiang Friday called for intensified efforts to build up the
country's capacity in polar exploration and active participation in international polar
exploration projects.
Li made the remarks on the 25th anniversary of China's launching first polar
exploration mission. On Nov. 20, 1984, China sent its first team to the South Pole.
Polar exploration missions concern the country's long-term interests and are of
pragmatic significance to the research and counter-measures against climate change, Li
said.
Li urged people working in the field to be down-to-earth, innovative and hardworking
so as to make contributions to global sustainable development.
202
Regional report
North
Politics
• Obama in Forbidden City (17th November)
US President Barack Obama (C) tours the Forbidden City in Beijing November 17, 2009.
Social front
• Air force dazzles crowd in founding show after delays (16th November)
Although gusty winds stung the faces of any braving the coldest day this winter, it did not
stop the 6,500 who were in attendance yesterday at the anniversary show of the People's
Liberation Army's Air Force.
Warplanes knifed through the winds, creating trails of red, white and blue smoke across
the skies over Beijing yesterday morning at Shahe Airport in northwest Changping
district as the military branch celebrated its the 60th anniversary of its founding.
Two-year-old Zhang Chongyue was shocked by the dazzling aerobatics, his father said.
"He was excited when we told him we would go to this air show," the elder Zhang said.
"But in the field, he was so quiet, just holding me and gazing at the maneuvering
aircrafts.
"We also brought him to the National Day's military parade, and he grew interested in all
of the equipment on display. And now, airplanes count among his favorites," he said.
Yan Feng, a J-10 fighter pilot in the aerobatics team, said this particular air show was
much more difficult than the National Day's air parade. The range of difficulty in the
team's maneuvers has made them among the elite teams in the world.
Four J-10 fighters and six J-7 fighter jets from the team took part in the 21-minute show.
It was announced that all of the planes in the team will upgrade to J-10, the third
generation fighter with more advanced aerodynamics and flying control. The show was
the first and last for the second- and third-generation fighters to perform in the same
show.
203
The demonstration also included a skydiving performance from the air force's
paratroopers, who unfolded China's national flag and the PLA flag in the air.
The PLA Air Force had originally planned to stage the aerial demonstration on Nov 11,
exactly 60 years after the air force was founded in 1949.
But the show was cancelled because of bad weather conditions and was postponed until
Nov 13, when fog and snow again forced the show to reschedule.
• Prominent city lakes fail water safety test (16th November)
Three lakes in Beijing were seriously polluted in October, the Beijing municipal water
resources bureau website said on Nov 12.
Water quality in Chaoyang Park Lake, Honglingjin Lake and Lianhuachi Lake was
revealed to be class V1, meaning the water is completely unusable. The lakes do not form
part of the city's drinking water supply.
"The pollution is mainly from domestic sewage," said Ma Jun, director of a green NGOInstitute of the Public and Environmental Affairs in Beijing which has released a China
water pollution map annually since 2006.
He said the water in Chaoyang Park Lake and Honglingjin Lake comes from the Liangma
River.
Ma said the river picks up domestic sewage before it reaches the lakes. Rain drainage
systems and sewers also increase the number of pollutants.
"This kind of pollution is called 'non-point source pollution'," he explained. Pollutants
come from non-specific places and enter rivers and lakes with rainwater.
Visitors to parks in east Beijing's business and expat-populated districts said the water
pollution in Chaoyang Park is apparent.
"I saw waste floating on Chaoyang Park lake and the water is almost black," Yang Xing,
a 25-year-old PR company employee, said about her visit in August.
Despite the pollution, hiring a boat remains a popular activity on the lake.
"People don't seem to care about the water quality," Shi Yu, a postgraduate student and
frequent visitor to Chaoyang Park Lake, told METRO yesterday.
Chaoyang Park Lake has been cleaned sporadically by the Beijing municipal government
since the early 1990s, but the pollution always returns.
"The most significant reason is water shortage," Ma said.
He said water in Beijing is scarce and its natural cycle is slow.
"Saving water in Beijing is very important," Ma said.
Beijing will hold a hearing on water prices this year, intended to raise public awareness
about limited water resources.
Water in six lakes, including Tuanjie Lake, Bayi Lake and Kunming Lake in Haidian
district was said to be safe to drink, the bureau said.
City rivers like Liangma River and Qinghe River were reported as more polluted than
suburban rivers.
Water in Miyun Reservoir, a major source of Beijing drinking water, was said to be safe
for consumption. But water in Guanting Reservoir can only be used for industrial
purposes.
•
China, EU hold human rights dialogue (21st November)
204
China and the European Union held the 28th round of human rights dialogue in Beijing.
Senior Chinese Foreign Ministry official Wu Hailong and Jan Nordlander, the
ambassador at large for human rights of Sweden, co-chaired the dialogue.
Wu, director-general of the Department of International Organizations and
Conferences of Foreign Ministry, expounded China's measures to deepen reform on
judicial system, to ensure judicial impartiality and to conduct international cooperation in
human rights affairs.
Nordlander also briefed the Chinese side on the EU nations' new legislation and new
measures to improve human rights.
The two sides agreed to maintain the positive momentum of the human rights dialogue
and exchanges, to promote the China-EU comprehensive strategic partnership.
During the dialogue, the two sides also introduced each side's recent progress in human
rights protection, and exchanged views on the rule of law and the international
cooperation on human rights.
Vice Foreign Minister He Yafei met with the EU delegation. During the meeting, he
said the dialogue was an important channel for China and the European Union to handle
human right affairs in a constructive way.
He hoped the two sides abide by the principles of equality and mutual respect for the
healthy development of China-EU dialogue on human rights.
China valued the EU's role in international affairs, and would work with the EU to
push forward China-EU relations, he said.
Economic front
• Beijing office market rebounds (16th November)
Beijing's office market saw a steady recovery in the third quarter, with the demand from
large domestic firms remaining strong and that from multinational companies picking up
as the global economy revives, China Daily reported Monday.
The recovery in the office market, which is reflected in the falling vacancy rate and
stabilizing rent, is powerful evidence for the resurgent economy, the newspaper said.
According to Jones Lang LaSalle (JLL), an international real estate service provider,
the total net absorption of office buildings in the capital amounted to 139,100 square
meters in the third quarter, which is the largest absorption recorded since the economic
downturn and almost double the amount seen in each of the previous three quarters.
Within the total net absorption, 60 percent was taken by domestic financial companies,
much higher than the 30 percent level seen at the beginning of the crisis in the third
quarter of 2008.
205
The demand from multinational companies is gradually rebounding, although it was
still much less than the demand from domestic firms because of the financial crisis.
JLL's latest report showed that in Beijing's overall office market, rents decreased by
2.9 percent quarter-over-quarter from July to September, much slower than previous
quarters, to 208 yuan(about 30.6 U.S. dollars) per square meter per month.
• Coal-to-electricity plan to expand (16th November)
A seven-year plan to replace polluting coal-fired heaters inside the Second Ring Road
ended on Saturday, with 160,000 families switching to electricity or gas.
Authorities are subsidizing the cost of electricity in order to encourage the use of cleaner
heating sources in central areas like Dongcheng, Xicheng, Xuanwu and Chongwen
districts.
They have also upgraded the city's power grid.
The Beijing environmental protection bureau said it would expand the "coal to
electricity" project to other areas, but was still discussing the details.
In 2009, it invested 7 billion yuan and covered 450 streets and 72,000 families, most of
which were nearby the 19 cultural and historical relics in the downtown area.
Beijing started the project in 2001. At the end of 2008, 94,000 families had switched to
electrical heating following a 6 billion yuan government investment.
Liu Wei, deputy director of the Beijing bureau's atmosphere department, told the Beijing
News that coal sales decreased by more than 60,000 tons between 2005 and the end of
last year.
He estimated that during this winter's heating season, sulfur dioxide emissions would
reduce by up to 190 tons while carbon monoxide emissions would reduce by more than
10,000 tons.
However, an 85-year-old woman surnamed Yan, who lives in Xiaobanjie Hutong,
Xicheng district, said she preferred coal-fired heating instead of the alternative.
"I love coal-fired heating, it easier to use and much warmer," she said.
The government is subsidizing the price of electricity during 10 pm to 6 am, from Nov 1
to March 31.
The price per kilowatt-hour is now 0.1 yuan, 0.3 yuan cheaper than the normal price. The
cheaper price includes all electrical appliances used within that time period.
According to a survey commissioned by the Beijing bureau, the price of electrical heating
in a 15 sq m room is about 1,500 yuan for the winter season. However, with the
government subsidy, the price drops to about 500 yuan.
A resident surnamed Gu in Wangpi Hutong, Chongwen district, said: "Coal prices have
been rising continuously in recent years, using electrical heating will save some money
and it is much safer."
Now that the project has been completed, the annual coal consumption is expected to
decrease by about 30,000 tons, which will contribute to a cleaner environment.
From Nov 1, the city recorded 10 days where the air quality had reached the "blue sky
day" standard. Beijing has recorded 255 blue sky days this year, five below the aim of
this year.
• Junk bond sales may get nod (19th November)
China may experiment with high-yield corporate bond issuances, as and when
"conditions permit", to help expand financing channels for its cash-starved small- and
206
medium-sized enterprises (SMEs), a senior central bank official said at a corporate bond
forum in Beijing yesterday.
Outstanding corporate debt, including both exchange-listed and inter-bank issuances,
surged dramatically from 560 billion yuan in 2006 to 2.1 trillion yuan by the end of
October this year, said Hu Xiaolian, deputy governor of the People's Bank of China, the
nation's central bank.
However, corporate bonds only accounted for 14 percent of all debt issued in China and
less than 10 percent of banks' lending by the end of September, Hu said.
State-owned companies were the main issuers of corporate bonds, with most of it
financing big infrastructure projects such as the Three Gorges Dam or new rail
infrastructure.
High-yield bonds, otherwise known as junk bonds, are considered speculative because
they carry substantial default risk. Therefore, Hu stressed the importance of a system to
facilitate information disclosure, credit rating and risk management.
China would issue three bundled bonds for non-financial SMEs to raise funds on the
inter-bank market next week as part of a "mock" high-yield bonds pilot.
The National Association of Financial Market Institutional Investors (NAFMII), which
oversees corporate bond issuances on the inter-bank market, said last week that the
issuance size of any SME bundled bond shouldn't exceed 1 billion yuan.
Zhang Jianhua, head of the central bank's research arm, suggested at the forum that
regulators should open the high-yield bond market to issues rated BB and above at the
preliminary stage.
To support the development of SMEs, the high-yield bonds should ideally mature in three
to five years, Zhang proposed.
A deeper corporate bond market will be crucial to making the Chinese yuan a global
currency. To see that happen, China's capital markets need to be far more sophisticated
and better integrated into the international financial system.
"With a more sophisticated capital market in shape, China may allow foreign investors to
issue yuan-denominated corporate bonds in China and the nation may start issuing yuandenominated bonds in the overseas market," said Zhang.
Policy adjustment is also needed to scrap a legal ceiling that caps public issuance of
corporate bonds at 40 percent of a company's net assets to help develop the corporate
bond market, said Shi Wenzhao, secretary general of NAFMII.
• Hebei Sanyuan, CAG agree on split of Sanlu assets (20th November)
Beijing Capital Agribusiness Group (CAG) has agreed to pay 58.5 million yuan (8.6
million U.S. dollars) for the non-performing assets of the Sanlu Group, which was
bankrupted in last year's melamine contamination scandal.
CAG and Hebei Sanyuan Foods Co. -- respectively the parent and subsidiary of the
Shanghai-listed Beijing Sanyuan Foods Co. -- jointly bid 616.5 million yuan for the core
assets of Sanlu in March.
Under an agreement, Hebei Sanyuan was to pay for Sanlu assets after Beijing Sanyuan
Foods got government approval to raise funds for assets purchase by private share-issues.
CAG, then known as Beijing Sanyuan Group Co., was to take over any flawed assets
or debt related to the assets incurred before the actual payment.
207
Hebei Sanyuan had found some Sanlu assets were defective or impaired after the bid,
which could lead to malfunctions, Beijing Sanyuan Foods said in a statement to the
Shanghai Stock Exchange Friday.
Hebei Sanyuan Foods has agreed to pay 558 million yuan (81.7 million U.S. dollars)
for the remaining assets.
The Sanlu assets auctioned in March included land use rights, manufacturing
equipment and a 98.8-percent stake in a dairy producer in Xinxiang city, Henan Province.
Beijing Sanyuan Foods said Tuesday that it had risen up to 1 billion yuan by issuing
shares to its parent company CAG.
• Property developer acquires land in Beijing at 5.05 bln yuan (21st November)
Dalong Estate, a Shanghai-listed property developer owned by Beijing's Shunyi district
government, had acquired a parcel of residential land in Shunyi for 5.05 billion yuan (739
million U.S. dollars), the Beijing Times reported on Saturday.
The land low-density housing lot was about 526,000 square meters. Its planned
construction area was about 169,100 square meters. The floor price amounted to nearly
29,900 yuan each square meter, the highest unit price for a residential site on the Chinese
mainland.
The land would be used to build villas, said the newspaper. Theplot's initial bidding
price was 1.41 billion yuan.
Northwest
Politics
• Chinese vice president advocates revolutionary Yan'an Spirit (17th November)
Chinese Vice President Xi Jinping has called for more efforts to carry forward the Yan'an
Spirit
and
stay
realistic
and
pragmatic
to
build
the
Party.
Yan'an, a city in northwestern Shaanxi Province, served as the CPC-led revolutionary
base during the 1930s-40s before the Communist Party of China (CPC) took power in
1949.
To promote the Yan'an Spirit, the primary thing is to adhere to correct political direction,
said Xi, also a member of the Standing Committee of the CPC Central Committee
Political Bureau, during a tour in Shaanxi from Nov. 13 to 16.
"We must also keep in mind the tenet of serving the people wholeheartedly and adhere to
the spirit of ideological emancipation, seeking truth from facts and keeping pace with the
times..."
Xi
said.
During his trip, Xi visited a number of villages, factories, schools and research
institutions. He also visited some areas which were badly hit by the catastrophic May 12
earthquake
last
year.
Accompanying Xi during his tour was Li Yuanchao, member of the CPC Central
Committee Political Bureau and the Secretariat of the CPC Central Committee, and head
of the Organization Department of the CPC Central Committee.
208
Social front
Economic front
• Chinese VP calls for Euro-Asia co-op to tackle financial crisis (16th November)
Chinese Vice President Xi Jinping on Monday called for expansion of economic
cooperation between Asian and European countries to fight against the financial crisis at
the
2009
Euro-Asia
Economic
Forum.
Addressing the third Euro-Asia Economic Forum in Xi'an, capital of northwest China's
Shaanxi Province, Xi said the Euro-Asia region should work for mutual benefit and winwin outcomes with its advantage in abundant natural and human resources, long histories
as
well
as
great
market
potentials.
He said European and Asian countries should expand business and investment
cooperation, mutually develop markets, facilitate free trade and guarantee the quality of
their
products.
He also called on financial organizations to further provide services for large projects of
cooperation.
Cooperation should be strengthened in the fields of energy and resources, with priorities
in energy saving, new energy and renewable energy, to obtain sustainable development in
the
region,
he
said.
Xi called for promoting comprehensive cultural cooperation, including exchanges in
science,
technology,
education,
public
health
and
journalism.
"We support the joint efforts of various countries to apply for including the Silk Road on
the
world
heritage
list,"
he
said.
He also encouraged the improvement of regional cooperation mechanism as well as
bilateral and multi-lateral cooperation, noting the Euro-Asia Economic Forum could
make use of its own advantages and characteristics and play a bigger role in the process.
The two-day forum attracted about 930 delegates from more than 60 countries and
regions including members and observers of the Shanghai Cooperation Organization
(SCO) and the United Nations organizations. Delegates from the world Top 500
companies
also
attended
the
forum.
They will discuss how to fight the global economic downturn through the cooperation in
finance, energy, customs and business as well as education, said Zhang Deguang,
Secretary-General
of
the
forum.
The biennial Euro-Asia Economic Forum was launched in Xi'an in 2005. The city was
named the permanent venue of the forum in April 2007.
209
•
China's top legislator urges northwestern province to blaze new path of
development
China's top legislator Wu Bangguo has urged northwest China's Gansu Province to blaze
a new trail of development in the western region to realize sound and fast economic and
social development.
Wu, chairman of the Standing Committee of the National People's Congress (NPC),
made the call when he was inspecting Gansu Province from Nov. 9 to 14.
Wu called for appropriately handling the relationship among maintaining economic
development, restructuring and sustainable development.
He urged the province to do a good job in upgrading structure and improving people's
livelihoods while maintaining a steady and relatively fast economic development.
During his inspection, Wu also called on metallurgical and petrochemical enterprises
to take full use of the resources and carry out a new round of technological update
focusing on energy conservation and cost reduction.
Wu said that development of new energy and clean energy, including wind power, solar
power and nuclear power, would become new points of economic growth. They are also
important measures in addressing climate change and guaranteeing energy security, he
added.
In addition, Wu stressed that importance should be attached to affairs concerning
people's livelihoods, social undertakings, consolidating ethnic unity and promoting social
stability.
The gross domestic product (GDP) of China's western regions rose 12.5 percent in the
first nine months from a year earlier, China's top economic planner said Thursday.
The growth rate was 4.8 percentage points higher than the national rate, said a
statement on the National Development and Reform Commission (NDRC) website.
China launched the "West Development Strategy" in January 2000 to help
underdeveloped western regions catch up with the more prosperous eastern regions.
The western regions comprise 12 provinces, autonomous regions and municipality,
which have a combined population of about 370 million and account for 71.4 percent of
the country's total land area.
Since last year, the regions have suffered the double blow of the global economic
downturn and the 8-magnitude earthquake that devastated western Sichuan, Yunnan,
Gansu and Shaanxi provinces on May 12, last year.
The government has taken measures to boost consumption in the region and stepped up
efforts to reconstruct the quake-stricken areas.
210
Retail sales in the regions were up 19 percent from the same period last year. The rise
was 3.9 percentage points higher than the national level.
The regions also saw fixed-asset investment up 38.9 percent to 3.16 trillion yuan
(462.7 billion U.S. dollars), according to the NDRC.
More than 43 percent of investment allocated by the central government to expand
domestic demand had been invested in western regions, Premier Wen Jiabao said in a
forum on developing the western regions last month.
Local fiscal revenue in the regions rose 14.8 percent, 5 percentage points higher than
the average national level, the NDRC said.
As elsewhere in China, the region saw imports and exports down due to weakening
foreign demand. Foreign trade volume in the region fell 22.6 percent, according to the
NDRC.
In the last 10 years, the central government had provided more than 3.5 trillion yuan to
support development of the western regions. GDP of the regions from 2000 to 2008
jumped from 1.66 trillion yuan to 5.82 trillion yuan, at an average annual growth rate of
11.7 percent, Wen said.
Northeast
Politics
• Jilin Special: Plan for further opening of northeast approved (20th November)
The State Council has approved development plans and regional cooperation in the
Tumen River region of Jilin province, a pilot area selected for further reform and
opening-up.
On Aug 30, after a year of research and preparation, an outline on development of the
Changchun-Jilin-Tumen River Pilot Zone received formal approval.
The outline highlights the strategic position of China's important border areas in further
opening the nation's trade as well as their importance as gateways to Northeast Asia and
as an important new growth center of the northeast.
Han Changfu, governor of Jilin, said the pilot zone was China's first border development
zone. It is expected to push forward cross-border cooperation in the Tumen River area.
Preferential policies will be adopted to promote port cooperation and the establishment of
comprehensive bonded areas and cross-border economic zones, he said.
He told China Daily that the pilot area will play a pivotal role in boosting the
development of Jilin, and in particular, its economic strength.
The governor noted Jilin is fully confident in developing the promising zone and continue
its efforts to revive the province's economy by taking the area as a new driving growth
area for the province.
211
Zheng Wantong, vice-chairman of the Chinese People's Political Consultative
Conference (CPPCC), said the area has "broad prospects for future development as it
would serve as a passageway in the Sino-Mongolian region and for northeast China".
He noted it will also aid the area's integration with Liaoning and Heilongjiang provinces
and the eastern part of the Inner Mongolia autonomous region.
One of the few development areas along the border in China, the region is at the center of
Northeast Asia, but has remained somewhat isolated.
Low levels of foreign trade have always been a weakness in the northeast's economy.
Jilin is a prime example.
In 2008, the province's total imports and exports were valued at just over $13.3 billion,
only 0.52 percent of the national total.
The figure was significantly lower than its contribution to national GDP, which was 1.96
percent of the total last year.
Its foreign trade ratio - the portion of its GDP from imports and exports - was 14.4
percent, far below the national average of 59.2 percent.
The newly approved two-stage development outline is expected to bring dramatic
changes.
The plan calls for the Tumen River area's level of openness to progress by 2020 to the
point it will have clear competitive advantages in industry as scientific and technological
innovation reaches advanced levels.
The aggregate economic activity of the Changchun-Jilin-Tumen River area will
quadruple as it becomes an important growth center in northeast China, according to the
blueprint.
"Exploring and opening up Tumen River area is the driving force to speed up Jilin's
revitalization," said Liu Shuming, director of the Macro Economics Department of Jilin
Government Development Research Center.
"In 2012, the economic volume of the Changchun-Jilin-Tumen River area will have
doubled," he said.
Sino-Mongolian passage
Yanbian autonomous prefecture on the border of China, Russian and North Korea is a
core area of Northeast Asia Economic Circle and the Tumen River area.
"Yanbian will carefully formulate supplementary and special plans and accelerate the
construction of passageways as the top priority," said Deng Kai, Party secretary of the
prefecture.
Deng said Yanbian will build highways from Hunchun to Wangqing, Suifenhe and on to
Russia.
The local government will make great efforts to construct the highways as the
Vladivostok-Hassan highway progresses, then converge with it, he said.
It will also start construction of the Jilin-Hunchun rapid railway and accelerate building
of a rail line from Hunchun to Dongning.
Wang Shengjin, vice-president of Jilin University, said people should take the
construction of Changchun-Jilin-Tumen River Pilot Zone as an opportunity to promote
construction of the Sino-Mongolian passageway.
When the passageway is finished, it will form a main artery linking northeast China and
Europe, entirely changing the rail transport network.
212
It could also open up the closest passage connecting Northeast Asia with Europe and
North America.
The Sino-Mongolian passageway plan also includes construction of the railway from
Aershan in Inner Mongolia to Choibalsan in Mongolia, the key project linking the
passageway together, Wang said.
Zheng from the CPPCC said it is crucial to open Sino-Mongolian passageway.
Background
"Before the pilot zone was initiated, the Chinese part of the Tumen River area was
mainly Hunchun, a port city in Jilin, involved in the cross-border cooperation," said Zhu
Xianping, director of the Northeast Asia Research Institute of Jilin University.
The small port city of 5,145 sq km and 250,000 population had limited industrial
development capacity to develop infrastructure projects that will match the cross-border
cooperation, he said.
Du Ying, vice minister of the National Development and Reform Commission, said that
by bringing the two cities of Changchun and Jilin into the border zone, the zone could
serve as a strategic platform to support the cross-border cooperation in the Greater
Tumen Region.
Zhao Zhenqi, an assistant to the governor, said the central government has allowed the
pilot zone to trial new land use and foreign financing methods, such as sharing ports and
sea routes with other countries in the region and setting up free trade zones.
Under the initiative of the pilot zone, local governments in the region could better interact
to tackle development bottlenecks, he said.
Social front
• Harbin goes Hollywood (20th November)
Hollywood Movieworks, LLC signed an agreement on Wednesday with the Harbin
government to shoot the Hollywood movie Modern Hotel, based on a hotel in the city.
The company will also cooperate in launching Harbin's winter cultural programs.
"We'd like to present the beauty of Harbin to the world though Hollywood stories," said
John Robinson, president of Hollywood Movieworks, LLC.
Modern Hotel of Harbin was founded in 1906 and is typical of French Renaissance Louis
XIV architecture style.
Economic front
• Tumen River Delta zone (17th November)
China has approved a border development zone in the Tumen River Delta to boost the
cross-border cooperation in the northeast Asian region, the provincial government of Jilin
announced yesterday.
The provincial information office said the pilot zone covering 73,000 sq km involved the
cities of Changchun and Jilin as well as the Tumen River area.
The delta, with a 516-km river straddling the borders of China, Russia and the
Democratic People's Republic of Korea, was set up as an economic development zone in
1991 by the United Nations Development Program.
Southwest
213
Politics
Social front
• Pigs get ID chips in central China (20th November)
Pigs in southwest China from Friday began having two identity chips fixed on their back
legs detailing where they were butchered, examined and sold.
Forty-five markets in downtown Chengdu, capital of Sichuan Province, have started to
sell pork with ID chips, said a spokesman with the city's food and drug administration on
Friday.
Two plastic rings containing the chips with information on where the pig was bred are
fixed around the pig's hinder limbs before it is sold to a slaughterhouse.
Additional information is added to the chips as the pig gets slaughtered, inspected and
sold to the end market.
The chip is scanned when each piece of pork is sold so that the customer can have a
receipt with a code that links to an entry that records the slaughter, inspection and sale of
the pork in a city database.
Every seller is required to scan the chip of meat they purchase so that the system logs
how much pork they have in stock. Meanwhile, their electronic scales are linked to the
market system to keep track of how much pork they sell.
"The amount of pork sold must not exceed that of pork purchased. That way we make
sure no pork comes from illegal channels," the spokesman said.
The customer could inquire about the pork by phone, text message or on the
administration's website to ensure it was safely bred, butchered, stored and transported as
well as properly examined.
Pork seller Wu Bo welcomed the policy. "Customers can now buy without hesitation.
With the chips, they can eat without worry," Wu said. "If anything goes wrong with the
quality, we know who to blame."
The city government and seller pays for every identity chip, which costs two yuan (29
U.S. cents), the spokesman said. "The cost is too small to affect the pork price."
The chips were tightly fixed and were almost impossible to takeoff without breaking
them, the spokesman said in response to questions on whether the identity chips can be
swapped.
Each of the pork pigs sold in Chengdu will get ID chips by the end of next April, the
spokesman added.
• Former US president Jimmy Carter volunteers in SW China (21st November)
Former U.S. President Jimmy Carter and his wife Rosalynn, together with more than 200
volunteers have been building homes for the poor at the annual Habitat for Humanity
Build event in Qionglai city, southwest China's Sichuan province.
The former Nobel Peace Prize laureate expressed that he had fulfilled his desire to
contribute to the quake-hit Sichuan region by taking part in the event which was held in
Sichuan - his old friend and late Chinese leader Deng Xiaoping's home province.
Carter added that he was glad to witness the people of the two nations working together,
214
and
promoting
the
friendship
between
China
and
the
U.S.
Some 248 volunteers from Hong Kong, Britain, South Korea and New Zealand made
every effort to finish the first floors in one week after performing subsidiary work. But Li
Jie, an official who is in charge of the project in Sichuan said, speed was not the key, but
the
quality
of
the
houses
was
most
important.
Habitat volunteers will help construct 16 multi-storey housing units that will eventually
benefit over a hundred families through the Carter project in Sichuan.
Hong Kong actor Daniel Wu, one of the devoted Habitat volunteers, said he was
delighted
to
help
the
families
who
urgently
needed
it.
With around 3000 volunteers from around the world, the Carters will lead the annual
Habitat for Humanity to build and repair 146 homes in Thailand, Vietnam, Cambodia,
Laos and China - all countries along the Mekong River - from November 15th to 20th.
The Carter Work Project is associated with Habitat for Humanity, a non-profit, nongovernmental organization founded in 1976 that is devoted to building basic housing with
local
materials.
This is the second Habitat for Humanity project in the southwest China province. The
volunteer group has helped in rebuilding efforts following the deadly 2008 earthquake
that ripped through Sichuan, and has built and supported housing for more than 4,000
families.
The Carter Work Project has taken the former first family to many parts of the world. The
Carters give a week of their time each year to building homes and raising awareness of
the need for affordable housing. The program is held at a different location each year and
attracts
volunteers
from
around
the
globe.
Many public figures including U.S. Secretary of State Hillary Clinton have joined the
organization not only to raise funds and generate publicity, but also to work on the
construction sites.
Economic front
•
Tourism promising (19th November)
215
Regional tourism based on China-ASEAN free-trade zone should be an opportunity for
the Guangxi Zhuang autonomous region to reform its tourism identity and develop its
tourism industry.
"The greatest potential for a tourism boom should emerge when travel increases around
neighboring countries, which brings in mutual benefit for both parts," says Gregory A.
Duffell, president and CEO of Pacific Asia Travel Association, at the third annual UN
World Tourism Organization /PATA Forum on Tourism Trends and Outlook held in
Guilin, Guangxi yesterday
The gross domestic product (GDP) of China's western regions rose 12.5 percent in the
first nine months from a year earlier, China's top economic planner said Thursday.
The growth rate was 4.8 percentage points higher than the national rate, said a
statement on the National Development and Reform Commission (NDRC) website.
China launched the "West Development Strategy" in January 2000 to help
underdeveloped western regions catch up with the more prosperous eastern regions.
The western regions comprise 12 provinces, autonomous regions and municipality,
which have a combined population of about 370 million and account for 71.4 percent of
the country's total land area.
Since last year, the regions have suffered the double blow of the global economic
downturn and the 8-magnitude earthquake that devastated western Sichuan, Yunnan,
Gansu and Shaanxi provinces on May 12, last year.
The government has taken measures to boost consumption in the region and stepped up
efforts to reconstruct the quake-stricken areas.
Retail sales in the regions were up 19 percent from the same period last year. The rise
was 3.9 percentage points higher than the national level.
The regions also saw fixed-asset investment up 38.9 percent to 3.16 trillion yuan
(462.7 billion U.S. dollars), according to the NDRC.
More than 43 percent of investment allocated by the central government to expand
domestic demand had been invested in western regions, Premier Wen Jiabao said in a
forum on developing the western regions last month.
Local fiscal revenue in the regions rose 14.8 percent, 5 percentage points higher than
the average national level, the NDRC said.
As elsewhere in China, the region saw imports and exports down due to weakening
foreign demand. Foreign trade volume in the region fell 22.6 percent, according to the
NDRC.
216
In the last 10 years, the central government had provided more than 3.5 trillion yuan to
support development of the western regions. GDP of the regions from 2000 to 2008
jumped from 1.66 trillion yuan to 5.82 trillion yuan, at an average annual growth rate of
11.7 percent, Wen said.
South central
Politics
• 15th Teochew International Convention opens in Guangzhou (19th November)
The 15th Teochew International Convention opened here Wednesday, a biennial
gathering of entrepreneurs originally from south China who started successful businesses
abroad.
Jia Qinglin, chairman of the National Committee of the Chinese People's Political
Consultative Conference (CPPCC), sent a congratulatory message to the convention.
Jia said in the massage that the gathering was a grand event for Teochew people living
worldwide and an important platform for these people to exchange and cooperate with
others
so
as
to
seek
for
common
development.
He praised the 30-year old organization for its role in bringing together Teochew people
in participating China's development and reunification, as well as promoting friendship
between the Chinese people and people of different countries and regions.
Li Changchun, member of the Standing Committee of the Communist Party of China
(CPC) Central Committee Political Bureau, attended the opening ceremony.
Wang Yang, Guangdong Party chief and member of the CPC Central Committee Political
Bureau also attended the gathering. Zheng Wantong, vice chairman of the CPPCC
National
Committee,
made
an
opening
address.
More than 3,500 delegates from 27 countries and regions attended the convention.
Teochew, or Chaozhou, refers to a section of the coastal areas in south China's
Guangdong Province. Many people living there migrated overseas in the past century and
started
flourishing
businesses
in
other
countries.
The conference has been held once every two years since 1981.
Social front
• Illegal cooking oil made from kitchen waste (17th November)
Authorities have uncovered two large workshops that were turning discarded kitchen
waste into cooking oil - a practice that is illegal and carries potential health risks.
217
One of the sites, in Dongguan of Guangdong province, had already been punished in
February this year for illegally producing cooking oil.
It had re-registered as a bio-energy technology company and was selling more than 10
tons of such oil a day, China Central Television reported.
A second site, in Shenzhen, was found with more than 32 tons of illegal oil.
Wu Shengbin, an official with the market supervision and management bureau of
Shenzhen, said the oil is OK for industrial use, but not for cooking.
Kitchen waste contains large amounts of sewage, garbage and detergent, said Huang
Fenghong, director of the Processing Center of the Oil Crops Research Institute under the
Chinese Academy of Agricultural Sciences.
Refining at illegal workshops does not sufficiently reduce the bacteria and hazardous
substances. Long-term intake of the oil may lead to cancer and other diseases.
The oil, which appears the same as normal cooking oil after purification, has been used
by canteens at some construction sites, factories and cheap restaurants in Dongguan.
A worker at a construction site canteen said the slop oil costs only 4 yuan (59 cents) per
kg compared with 20 yuan per kg for peanut oil. His canteen uses more than 30 kg of oil
a day, which means a savings of nearly 500 yuan.
Cooking oil as cheap as 2 yuan per kg and labeled as palm oil was found at a farmers'
market in Dongguan.
The problem is difficult to eradicate because the workshops are scattered and the sector is
supervised by different government agencies without an effective coordination, Huang
said.
The lack of a standard for cooking oil also makes it hard to single out slop oil from
normal cooking oil, said a worker with the industry and commerce administration of
Dongguan.
In Guangzhou, city authorities are formulating the regulation of kitchen waste and plan to
build a slop processing center. In Shenzhen, the market supervision and management
bureau was established in September. It combines the roles of three previous departments
and aims to improve food safety and market supervision.
Guangdong is not alone in the fight against slop oil. About 17 tons of such oil was found
every day during a campaign this January in Changsha, Hunan province. Ten tons were
discovered at a site in Chongqing municipality in November last year.
China produces more than 60 million tons of kitchen waste every year, according to
statistics from the department of environmental science and engineering of Tsinghua
University.
About 14.1 million tons of edible oil was sold in China in 2006 and up to 1.5 million tons
of slop oil was used for cooking every year, reported Science and Technology Daily early
this year.
Economic front
• BYD to spend 1.5b yuan on vehicle testing center (17th November)
China's battery and electric car producer BYD Co said yesterday that it would invest 1.5
billion yuan to build China's largest vehicle testing center, in a bid to strengthen its
research and development capability as well as to enhance the quality of its offerings.
218
The center in Shaoguan, Guangdong province, which will include an auto parts
production base as well, is scheduled to begin operations before 2012. Upon completion,
the output value of the center is expected to exceed 1 billion yuan.
According to BYD, the testing center, the largest in the country, will help it break into the
top ranks of the global automobile industry in terms of R&D capability and vehicle
quality control.
The Warren Buffett-backed automaker currently has a nationwide quality control and
R&D system, including vehicle inspection lines, at its manufacturing bases in Xi'an and
Shenzhen; a vehicle crash testing lab in Shanghai and an R&D center at its headquarters
in Shenzhen.
BYD announced in late September that a high-speed curved cycling track in Shenzhen,
the fifth such proving ground in China, had gone on-stream, making it the first Chinese
automaker to have its own circuit.
"BYD always attaches much attention and invests hugely in R&D and quality control as
we believe the quality of our products is vital to our long-term development," said Xu
An, BYD's public relations manager. "We have seen beneficial results from insisting on
quality control, especially in making the auto parts ourselves, during previous years."
Currently, BYD produces all the auto parts, except the windshield and tires, for its cars.
This is seen as a smart way to shorten the turnover period of sourcing parts and supply,
and promises comprehensive quality control of its products and speeds new model
launches.
• Guangdong injects hefty fund for ambitious industrial program (19th November)
A 400 million yuan fund is being amassed in Foshan, one of the key economic centers
along the Pearl River Delta. The money will be used as part of an ambitious industrial
transfer program called "double transfer" in the Guangdong province, aimed at
revitalizing the cities of Qingyuan and Yunfu over the next three years.
The move follows a 2008 investment of some 100 million yuan in the establishment of a
number of industrial parks, a key part of the transfer program.
The "double-transfer initiative" refers to the transfer of labor-intensive industries from the
Pearl River Delta region to the less developed regions of the province and the subsequent
transfer of rural labor to the local secondary and tertiary industries from the primary
industry or to the Pearl River Delta region.
Commenting on the initiative, Lin Yuanhe, Party secretary of Foshan, said: "In light of
the policies adopted by the provincial authorities, Foshan will redouble its own efforts to
encourage businesses to relocate to either Qingyuan or Yunfu. We plan to achieve this by
offering a number of subsidies and by accelerating the development of the industrial
parks' infrastructure."
Lin said that some 4,000 rural workers from Yunfu will be relocated to Foshan every year
between 2009 and 2012. An additional 50,000 workers will also be offered places on
retraining programs.
A further 100,000 rural workers will also be redeployed into the local secondary or
tertiary industries or given the opportunity to move to Foshan.
As well as the funding earmarked by Foshan, Shenzhen has also set aside 500 million
yuan for the development of industrial transfer parks in the cities of Shanwei and
Chaozhou, over the coming five years.
219
Besides quarterly meetings by the three cities, Shenzhen has now mapped out a series of
proposals and an evaluation system aimed at establishing the relocation potential for
individual businesses.
Underlining the city's commitment to the strategy, Liu Yupu, Party secretary of
Shenzhen, said: "Shenzhen aims to be in the vanguard of the 'double-transfer initiative'.
Our strategy is to encourage businesses to transfer their manufacturing facilities
elsewhere, while leaving their headquarters in Shenzhen."
The city now aims to foster one or two province-level industrial transfer model parks in
Shanwei and Chaozhou over the next three to five years.
Enthusiasm for the project is equally strong in the delta city of Zhongshan. The city has
now announced an annual budget at least 100 million yuan for the period 2009 to 2013,
aimed at the establishment of an industrial park in the under-developed city of Heyuan.
Li Qihong, mayor of Zhongshan, said: "In addition to this substantial financial
commitment, we will also work in association with the city on an annual campaign aimed
at highlighting its competitive investment environment.
"We will particularly look to get Heyuan established in the fields of new energy, new
materials, medicines and household appliances."
As part of the province-wide program, the delta boomtown of Dongguan has already
transferred more than 1,400 businesses and projects - representing investments of more
than 100 billion yuan - elsewhere across Guangdong, as part of the "double-transfer
initiative", according to Li Yuquan, mayor of Dongguan.
Overall, Guangdong has now set up 33 industrial transfer parks in the less developed
areas of the province, involving some 2,036 businesses. A total of 819 of these projects
are now operational, representing a combined investment of 71.8 billion yuan.
The parks achieved an industrial output of 52.2 billion yuan in the January-August period
of this year, a growth of 72.49 percent over the whole of 2008.
The "double-transfer initiative" has also resulted in a discernible change in the
employment structure of the province. The ratio of the people involved in the primary
industry now makes up 28.8 percent of total employment, a drop of 0.6 percentage point
compared to last year.
The ratio of the people involved in the tertiary industry accounted for 32.2 percent, up by
a corresponding 0.6 percentage point, according to official statistics.
Guangdong Special: 'Double-transfer' initiative set to boost rural economy (19th
November)
The strategic decision to relocate its labor-intensive manufacturing facilities to an
economically less developed region has proved hugely beneficial for the Guangzhou
Eagle Coin Enterprises Group. It is now one of the company's key strategies in its bid to
ride out the rigors of the current financial downturn.
Zhou Canyu is the general manager of the 50-year old food processing company.
Commenting on the significance of the move, he said: "If we had not relocated, our
company would definitely have suffered as a result of the current economic difficulties."
The company has now divided its manufacturing facilities between Dianbai and Qingxin,
in the west and north of Guangdong respectively. These two areas are relatively
underdeveloped, allowing Eagle Coin to enjoy considerable cost savings.
•
220
Zhou said: "The move not only offered jobs to around 1,000 rural laborers, but also better
positioned us to survive this relatively lean period."
Eagle Coin is not the only business to have taken this route. Many companies in the Pearl
River Delta region have relocated labor-intensive production departments to less
developed regions in the east, west and north of the province. A number of these
businesses have also participated in the province's pioneering "double-transfer initiative",
a policy introduced by the local government early in 2008.
The "double-transfer initiative" refers to the transfer of labor-intensive industries from the
Pearl River Delta region to the less developed regions of the province and the subsequent
transfer of rural labor to the local secondary and tertiary industries from the primary
industry or to the Pearl River Delta region.
Ye Jinbao, an expert with the provincial social sciences association, said: "The initiative
has begun to play an effective role in accelerating the economic development of the less
developed regions in the east, west and north of the province. It has also helped optimize
the economic structure of the better-developed Pearl River Delta region.
"Thanks to this initiative, the manufacturing skills among the rural population have been
improving, while the development of the manufacturing sector in the less developed
regions has gained speed."
The initiative has also made it possible for the region to expand the development of its
modern industrial systems.
Official statistics show that the province's less developed regions in the east, west and
north saw a GDP growth of 13 percent, 10.2 percent and 12.6 percent respectively in
2008, all above the average for the province. Against this, the delta cities saw a distinct
decline in the ratio of the output of their labor-intensive industries last year.
The industrial output of the leather footwear sector in 2008 was 12 percentage points
lower than in 2003 in terms of the province's gross industrial output. For the porcelain
sector, the figures were 15 percentage points lower.
The province's 29 province-level parks involved in the industrial transfer from the delta
regions achieved a total industrial output of 30.27 billon yuan and pre-tax profits of 2.77
billion in 2008, respectively growing 4.67 times and 5.33 times compared with 2007.
They also created 164,200 job openings last year, 99,600 of which were filled by local
people.
In keeping with the thinking behind the province's "double-transfer initiative", the delta
cities of Guangzhou, Shenzhen, Zhuhai, Dongguan, Foshan and Zhongshan were the key
cities where the labor-intensive, resource-intensive industries or manufacturing
departments were subject to relocation to less developed regions.
This has given the local government the opportunity to look to establish the delta region
as a global hi-tech manufacturing center and an international city cluster by the year
2020.
The per capita GDP in the delta region is expected to reach 80,000 yuan by the year
2012.
•
Guangdong's economy to grow 9% in 2009, governor says (20th November)
South China's Guangdong Province is expected to achieve economic growth of 9 percent
this year, higher than the target of 8.5 percent, governor Huang Huahua said Thursday.
221
The worst time was over and this year's economic situation was better than expected,
Huang told Xinhua.
Guangdong's economy in the first quarter expanded 5.8 percent from a year earlier,
lower than the 6.1 percent nationwide, as the global financial crisis took a heavy toll on
China's "factory of the world."
The growth rate accelerated to 8.6 percent in the year to September, 0.9 percentage
points higher than the national average rate.
Huang said the economy picked up with massive government spending and measures
to help exporters and small and medium-sized businesses to ride out the economic crisis.
This year, the province would invest 330 billion yuan (48.3 billion U.S. dollars) in 10
projects that cost a total of 2.3 trillion yuan.
Guangdong's export decline narrowed to 16.8 percent year on year in the first 10
months, compared to a 20.5-percent slump for nationwide.
East
Politics
• Obama meets with secretary of CPC Shanghai Municipal Committee (16th
November)
.S. President Barack Obama(L) meets with Yu Zhengsheng, member of the Political
Bureau of the Communist Party of China (CPC) Central Committee and secretary of the
CPC Shanghai Municipal Committee, at the Xijiao State Guest House in Shanghai, Nov.
16, 2009.
• Obama brings fortune to some in city (16th November)
The visit by United States President Barack Obama to Shanghai has generated an
unexpected business boom for some in the city.
A variety of T-shirts, bags, posters and trinkets with Obama's image are once again hot
items here in Shanghai.
"It's the third time an Obama T-shirt has been popular. The previous two were after he
became president and when he won the Nobel Peace Prize," said Gan Shuqin, owner of
an online shop on Taobao.com. Her shop features an "ObaMao" T-shirt, with Obama's
face superimposed over that of Mao Zedong, with the famous inscription reading "Serve
the People wholeheartedly" at the bottom of the shirt.
The "ObaMao" T-shirt and one replacing former president Abraham Lincoln's head with
Obama's on the $100 bill are trendy among young people, said Gan.
Obama's stop in Shanghai, where he will be greeted with a Disneyland deal, will fuel
Sino-US economic and trade exchanges, experts say.
222
Liu Aming, a researcher with the Institute of Asia-Pacific Studies, Shanghai Academy of
Social Sciences, said Obama will be the first US president to set foot in Shanghai during
a state visit to China.
"It just shows clearly how important Shanghai is in China's economic development as he
attaches great importance to Sino-US economic and trading interactions."
J. Norwell Coquillard, chairman of the American Chamber of Commerce's Shanghai
Board of Governors, said the organization is growing fast, mainly due to Shanghai's
dynamic economic growth and development into a commercial, financial and industrial
capital of the Asia-Pacific region.
"More than 65 percent of the Fortune 500 have regional headquarters here in Shanghai
and trade last year between the US and Shanghai alone exceeded $50 billion," he said.
"The president's visit highlights the growing importance of Shanghai in the overall USChina commercial relationship."
Ni Shixiong, former deputy director of the center for American studies at Fudan
University, said: "The China visit will be the first meeting between President Obama and
President Hu Jintao after the London Summit, where they agreed to work together to
build a positive, cooperative and comprehensive relationship."
As plenty of issues will be discussed and new consensuses are expected to be reached,
Shanghai will be the place for him to warm up, Ni added.
"He is going to have a town hall meeting with Chinese youth. It is a type of
communication Obama always likes. And as the youth represent the future of a country,
the meeting will demonstrate the vitality of the two countries' future relationship."
Frank Sieren, 42, a China expert and bestselling author who has spent 15 years in Beijing,
said: "I think Obama is visiting Shanghai to see the most modern and developed city in
China," he said.
"Through meeting with the youth, he wants to learn more about Chinese self-awareness,
about how Chinese kids see their own country and what they think of the US. He
probably wants to find out if the US is still a role model," he said.
• 'White house director' on trial for corruption (20th November)
A former district chief that locals call "the Director in the White House" in Anhui
province went on trial yesterday on charges of revenge and bribery.
Zhang Zhi'an, a former director of Yingquan district of Fuyang, was accused of getting
revenge on Li Guofu by making up false charges against the man who later killed himself
in a detention house.
The prosecution also accused Zhang of abusing power, and taking and asking for bribes
52 times involving 3.6 million yuan ($527,000). There was no verdict yesterday.
Zhang became a famous figure in 2007, known as the "White House director" after he
spent 30 million yuan ($4.4 million) to build an office building that looks identical to the
US White House. The decoration and furniture inside were luxurious, too.
Fuyang is a city where most people's monthly income is no more than 1,000 yuan ($150).
Zhang's corruption and extravagancy aroused public anger. In August 2007, Xiao Hua, a
secretary for the Fuyang government, intercepted a letter that reported Zhang as being
guilty of bribery, making money out of appointments, and abusing power.
The secretary gave the letter to Zhang.
223
Zhang believed that the letter was written by Li Guofu, a man who formerly worked
under him, and Zhang decided to take revenge.
On Aug 22, 2007, Zhang wrote a letter containing false accusations of Li's misbehaviors,
including embezzlement, taking bribes, and using officials' power to help his children
find jobs. He sent the letter, as if it were written by an anonymous citizen, to local police,
the procuratorate, the court and himself.
He then put pressure on local police to investigate Li's case, asking the director of the
local police bureau to make sure Li would be prosecuted.
On Sept 7, 2007, Li was arrested and detained at Fuyang detention house. Zhang then
interrogated Li about his alleged corruption activities, and forced Li to confess to Zhang
after Zhang threatened his family. In March 2008, after more than five months in the
detention house, Li died in the prison hospital of Anhui province. The official report said
he hanged himself.
According to Li's family, Li lost his eyesight before he died.
The unnatural death of Li gained attention from the public and media. In July 2008, the
Anhui procuratorate decided to investigate the case, and Zhang was prosecuted in
December 2008.
Social front
• 'Egret Island' retains green roots (16th November)
Xiamen island, the fourth largest island of Fujian province, covers an area of 128.14 sq
km. It is also known as the "Egret Island", a legacy of its long association with one of
China's most abiding myths.
The tale tells of a time long ago when Xiamen was a remote and lifeless island. One day,
a flock of egrets arrived and immediately made their homes on the island, charmed by its
abundance of fish and shrimps and its lack of predators.
The egrets started to decorate their new home by digging springs with their beak and
talons. Some fetched flower and tree seeds and planted them on the island. Soon bees,
butterflies and many other kinds of birds were attracted to this beautiful island where the
flowers and trees grew so freely.
As time went by, the island became ever more colorful and lively and thus Xiamen took
the name egret island in memory of the birds that had contributed so much to it. Today,
Xiamen is a prosperous metropolis with high-rising skyscrapers and fast-flowing traffic.
The city, however, has also preserved its commitment to environmental protection.
The island's forest coverage is still above 40 percent, twice that of the national average.
Its industrial water-recycling rate is in excess of 90 percent, compared to 60 percent
throughout the rest of the province. As for the egrets, well they can still be seen in the
lakes, mountains and universities of the city.
The quality of Xiamen's environment has bee widely recognized. The city was honored
as a State-level garden city and a model city for environmental protection by the central
government in 1997. The city also received the China Habitat Award in 2003 and the
Habitat Scroll of Honor Award from UN-Habitat one year later.
Despite its success, Xiamen's efforts to protect its environment continue. At the end of
October, 900 families in the island's Xucuo community began to use natural gas for daily
cooking.
224
By the end of this year, 240,000 pipeline gas users will have switched to natural gas,
causing significantly less pollution than the use of liquefied petroleum gas.
Natural gas will also be adopted in the public transport sector in the city. From 2010 on,
the city has plans to promote natural gas-driven buses as a way of reducing exhaust gas
emission. In the first stage of the program, three natural gas stations will be built.
Xiamen plans to eliminate 510 outmoded buses with high emission rates during 2009 and
has ordered 400 new ones to take their place. The city also plans to develop river buses
when its watercourses are cleared in the future.
Xiamen is also considering the introduction of emission records for vehicles in the city
and will issue certificates to those vehicles whose exhaust gas emissions are within
certain limits.
Vehicles without certificates will not be allowed to enter central Xiamen after January
2010, according to the Xiamen Environmental Protection Bureau.
The bureau also said sewage from 60 percent of the 400 rural villages in Xiamen will be
processed before being discharged after 2011.
As part of the process of environmental protection, many ordinary Xiamen people have
also contributed hugely. Because of their 12-month opposition to the project, a
paraxylene (PX) plant, involving a total investment of 10.8 billion yuan, the largest
industrial project backed by the municipal government in 2006, has been scrapped.
Paraxylene is primarily used as a raw material in the manufacture of polyethylene
terephthalate (PET) materials.
Although the plant could potentially have contributed 80 billion yuan of annual industrial
output value to the city, Xiamen's citizens were concerned that the plant would be the
source of serious air and water pollution, representing a real health risk in the area.
Thousands of citizens subsequently took part in a protest walk against the project.
Xiamen is now shifting its focus to environmentally friendly industries, such as finance,
software and tourism. The city now aims to raise the contribution of its financial sector to
its GDP from the current eight percent to 10 percent within two years, according to Ding
Guoyan, deputy mayor of the city.
According to a policy newly implemented by the municipal government, Xiamen will
provide subsidies for renewable energy projects and companies that eliminate outdated
equipment and technologies in order to reduce consumption and emission. This subsidy
will be as much as two million yuan per project.
According to another policy, currently waiting endorsement by the municipal People's
Congress, businesses in Xiamen guilty of marine pollution will be placed on a blacklist.
In addition to direct penalties of between 50,000 yuan and 200,000 yuan, these
companies will be ineligible to undertake local government projects or apply for bank
loans.
• The 12th West Lake Art Expo kicks off in E China (20th November)
An oil painting of a Peking Opera character is featured at the 12th annual West Lake Art
Expo in Hangzhou, Zhejiang province, November 19, 2009. The Expo displays nearly
10,000 artworks from over 100 artists and art institutions home and abroad.
Economic front
• Clinton working her magic to woo backers to expo dream (17th November)
225
If you build this, they will come.
Hillary Clinton, the United States secretary of state, refashioned yesterday a line from the
US movie Field of Dreams to urge American companies to sponsor the country's pavilion
at next year's World Expo in Shanghai.
The structure of the USA National Pavilion was completed last month, three months after
the world's largest economy confirmed its participation in the expo following arduous
fundraising efforts.
Construction of the structure was done in no time - it usually takes half a year to finish a
6,000-sq-m pavilion, one of the largest at the Shanghai World Expo.
With the building in place, Clinton, in her second visit to China as secretary of state, is
hoping more investors will contribute another $20 million to meet the $61 million budget
of the pavilion.
"Boeing has just agreed to double its contribution to $2 million," she said.
"I know there are some in the audience that are still contemplating sponsorship, or may
be in negotiations with the USA team. Now is the time to join this effort; we want to
assemble the strongest team of partners possible," she said.
And she wants more visitors, too.
"We are building it, and we believe when the expo opens in 166 days, 70 million people
will come. And with this rain today, maybe 100 million, and with that even greater good
fortunes."
The secretary of state made the remarks at the construction site of the US pavilion in the
Expo Garden in heavy, cold rain, described by Shanghai Vice-Mayor Yang Xiong as
"rain of good fortune" in line with a Chinese tradition.
According to US laws, all funds for US participation in the expo should come from the
private sector.
But companies are reluctant to dip into their pockets amid the economic crisis. At one
point, some critics thought the US may miss the Shanghai gala.
But since technology giant 3M became the first sponsor in March, companies such as
PepsiCo, General Electric and Yum! Brands have signed on.
The US agreed to join the expo in July, the third to last nation to confirm among the 242
participants, followed by World Trade Organization and Shanghai Cooperation
Organization.
The country experienced a similar funding difficulty in 2005, when its participation in the
Aichi expo came true only after Japanese companies such as Toyota Motor North
America became sponsors.
• Xiamen set to be core of new economic zone (17th November)
In line with the central government's newly agreed strategy to accelerate the construction
of a powerful advanced manufacturing center along the western coast of the Taiwan
Straits, Xiamen has announced its own plans to optimize its industrial structure and boost
its economic development. This new initiative by Xiamen, a city in the southeastern
coastal province of Fujian, places it at the very core of the western straits economic zone.
The city's central areas will be planned in line with the development of hi-tech industries
according to the new plan. These industries will be capital, technology and laborintensive, as well as being environmentally friendly.
226
The new plan calls for the increased use of digital information technology in automated
manufacturing and management systems. It also envisages a greater uptake of a range of
digital products and integrated systems, all aimed at improving the efficiency of the
businesses in question.
The construction of advanced industrial facilities will be accelerated to promote and
develop new industrial clusters.
Facilities will be upgraded in the Torch Industrial Area in Xiang'an, the Tong'an
Industrial Area, the Xiamen Software Park and the Jimei Heavy Manufacturing Area.
Under a scheme intended to nurture new industrial clusters, the electronic information
industry will focus on the development of computers and related technology, digital
audio, telecommunication equipment, electronic components and a raft of other products.
The machinery sector will prioritize the production of passenger vehicles, construction
machinery, aircraft maintenance, electrical equipment, shipbuilding and equipment for
the deep processing of tungsten products.
The chemical sector will concentrate on a number of areas, including fine chemicals and
rubber tire production.
Advanced technology will also be used to upgrade light industry, food processing,
building materials and other traditional industries.
The city authorities' ongoing efforts to attract overseas and domestic capital are also
expected to benefit local research and development (R&D) facilities and enable them to
offer an enhanced resource for the city's various industries.
Rational layout
The local government initiative also focuses on maximizing the appropriate exploitation
of the resources of the region and on achieving overall well-balanced development.
According to the plan, urban-rural integration and a rational industrial layout will be
implemented.
Xiamen Island, for instance, will focus on hi-tech research and development, aircraft
maintenance and component production. This will allow it to take full advantage of its
airport facilities. The surrounding areas of Jimei and Tong'an will focus on machine
building, optoelectronics and related industries respectively.
To enhance this extension of the industrial chain and expand the overall industrial scale,
Xiamen will launch a number of industrial projects aimed at attracting domestic and
overseas investment.
Xiamen will further improve its export-oriented economy, promote its opening-up
policies and place a renewed focus on securing overseas investment.
The city plans to promote the localization of overseas-funded enterprises, with foreign
investors being specially encouraged to establish R&D facilities in Xiamen.
Following the State Council's decision to accelerate the development of the economic
zone on the western side of the Taiwan Straits earlier this year, Xiamen is poised to
implement a range of measures to spur cross-Straits ties. This new round of cooperation
with Taiwan will further boost Xiamen as a major destination for attracting investment
from its neighbor.
The city will back the development of three Taiwanese investment zones at Haicang,
Jimei and Xinglin and will adopt more incentive policies aimed at encouraging Taiwan
businesses to set up production and R&D facilities in the city, particularly in the high and
new technology fields.
227
Xiamen also plans to become an important destination for Taiwanese-backed businesses
and a pioneer in cross-Straits cooperation and exchange.
• Action hots up on Bund realty front (19th November)
Hutchison Whampoa and Sun Hung Kai Properties are likely to enter the bidding race for
the city's most expensive piece of real estate, according to industry sources.
The two heavyweight Hong Kong realtors are already active players in the Shanghai
commercial realty market. They are expected to join 20 other companies to bid for the
plot sometime in mid January.
The entry of the Hong Kong developers does not come as a surprise to industry experts as
Shanghai is slowly being modeled as a leading financial and shipping center. That in turn
would see the entry of big-ticket international companies.
By acquiring land in advance the Hong Kong developers would not only acquire valuable
realty in the city, but also get a good return on their investments in the future, said the
experts.
Analysts estimate that the plot, located in the future Bund international financial service
center, could fetch an auction price of nearly 11 billion yuan, making it the most
expensive piece of realty in the mainland.
Officials with the Huangpu district government, owner of the plot, refused to reveal the
base price for bidding, but said they expect the price to between 9 billion and 11 billion
yuan indicating that the per sq m cost of the plot would be around 40,000 yuan by gross
floor area.
"This plot is a complex one, and in order to acquire more knowledge about it, we
attended the briefing (held on Monday by the local government). But that doesn't mean
we will buy it," said Wang Zheng, assistant general manager with Sun Hung Kai
Properties. Hutchison Whampoa officials were not available for comments.
Prominent among the other companies that participated in the meeting are CITIC Pacific,
Swire Properties, GIC Real Estate, the Government of Singapore Investment Corp, and
the Shanghai-based 'land king' Greenland Group.
Xue Jianxiong, an analyst with E-House (China) Holdings Ltd, said he doesn't expect the
plot to fetch prices that are far above the market price. "The prices have already soared.
Developers have to spend several billion yuan to develop the project thereby affecting
cash flows," said Xue.
According to Lu Qilin, deputy director with Shanghai-based Uwin Real Estate Research
Center, heavyweight property developers from Hong Kong and overseas have distinct
advantages over domestic rivals.
"Unlike residential projects, the commercial complex entails sophisticated management
and operational experience. Therefore, private property developers may be excluded from
the bidding," Xue said.
This year, the domestic property market has been booming with land prices hitting new
highs in ambitious biddings. The Shanghai government has started to put more land plots
into the market to augment supply.
Earlier this week Poly Real Estate purchased a 210,000-sq-m plot for 390 million yuan in
Changchun of Jilin province.
•
Pudong gets C919 final assembly line (19th November)
228
Commercial Aircraft Corp of China Ltd (COMAC), which is in charge of the indigenous
C919 passenger airplane program, announced yesterday that it would set up its final
assembly line in the city's Pudong New District.
The center, located south of Pudong International Airport, is divided into Pudong Base
and Dachang Base, with the former covering an area of 267 hectares, Jin Zhuanglong,
general manager of COMAC, said in Shanghai.
Construction of the Pudong base will start by year-end, and it targets to manufacture 20
homegrown C919 jets and 50 ARJ 21-series planes annually by 2016, the company said.
The division, which has a registered capital of 2 billion yuan, is among COMAC's three
key units responsible for aircraft design, manufacturing and service. Work on the
manufacturer's research and development center started in Pudong's Zhangjiang Hi-tech
Park this July.
"Assembly and manufacturing are among the core capabilities that ensure the business
success of ARJ 21 and C919 passenger planes and it will largely boost China's civil
airplane industry," Jin said.
Shanghai-based COMAC was established in May 2008 with 19 billion yuan in registered
capital to take on Boeing and Airbus in China's fledgling but booming aviation market by
building a home grown 150-seat passenger aircraft.
The airplane manufacturer unveiled a model of the narrow-body C919 plane at the Asia
Aerospace Expo in Hong Kong this September. The C919 is expected to take off in 2014
and enter service in 2016.
COMAC aims to become one of the Big Three aircraft manufacturers in the world to
compete with Boeing and Airbus, Chen Jin, general manger of COMAC's sales and
marketing department was earlier quoted by Reuters as saying.
China has become one of the world's fastest-growing aviation markets. According to the
Civil Aviation Administration of China, the country's passenger traffic volume reached
191.9 million in the first 10 months of 2009, up 19.8 percent from the previous year.
• Shanghai copper futures sizzle (19th November)
Copper futures traded in London, New York and Shanghai rallied to the highest level in
14 months as the dollar's decline boosted the appeal of raw materials as alternative
investments.
The metal used in construction and automobiles has more than doubled this year as the
global economy recovers from its worst recession since World War II and a weaker dollar
encourages investment in physical assets.
The US currency fell yesterday for a third time in four days against a basket of six major
currencies.
"The weaker dollar and inflation expectations will put a floor under prices," said Cai
Luoyi, an analyst at China International Futures (Shanghai) Co. "We're expecting some
consolidation ahead as the market faces the quandary of improved demand and rising
stockpiles."
Copper for delivery in three months on the London Metal Exchange gained as much as
1.3 percent to $6,915 a metric ton, the highest level since Sept 26, 2008.
The March-delivery contract on the Comex division of the New York Mercantile
Exchange jumped to $3.16 a pound, the highest price since Sept 24, 2008.
229
February-delivery copper on the Shanghai Futures Exchange added as much as 1.4
percent to 53,950 yuan a ton, the highest since Sept 23, 2008, and ended the day at
53,940 yuan.
The metal also gained on speculation that rising consumption in China will offset weaker
demand in the US. China and the US are the world's two biggest copper users.
The metal for immediate delivery in Changjiang, Shanghai's biggest cash market, traded
around 52,550 yuan a ton yesterday, nearly double the level at the start of the year, a sign
demand may be improving.
This helped reverse Tuesday's 0.4 percent drop after a report showed US industrial
production expanded less than expected in October as manufacturing declined for the first
time in four months.
Still, inventories in Shanghai are at a five-year high of 104,939 tons. Copper stockpiles
tallied by the London Metal Exchange rose for an 11th day on Tuesday to 410,000 tons,
the highest since April 29.
Among other LME-traded metals, aluminum rose to a three-month high of $2,066 a ton,
and zinc gained to a three-week high of $2,289 a ton.
Lead added 0.6 percent to $2,399.75 a ton, nickel was up 0.9 percent at $17,050 a ton,
while tin climbed 1 percent to $15,100 a ton in afternoon trade in Singapore.
• Qingdao named top resort (20th November)
The coastal city of Qingdao in East China's Shandong province has been named as one of
the nation's Top 10 Resort Cities of 2009.
The other winners on the list, compiled by the Beijing-based Xiaokang Magazine, include
Guiyang, Jilin, Heyuan, Chengde, Anshun, Zhaoqing and Jiaxing. The recreation industry
has become one of China's fastest-developing sectors, with its total tourism revenues
reaching 1.1 trillion yuan ($170 billion) in 2008.
HONGKONG AND MACAU
Politics
• Chinese central government supports Macao's foreign exchanges: spokesman
(19th November)
The Chinese central government will continue to support the Macao Special
Administrative Region (SAR) in its exchanges and cooperation with Portuguese-speaking
countries in line with the Basic Law of the SAR, says the Chinese Foreign Ministry
Thursday.
Foreign Ministry spokesman Qin Gang made the remarks when asked to comment on
Macao's role in relations between China and Portuguese-speaking countries.
"Macao plays a unique and constructive role in promoting economic and trade
cooperation between the Chinese mainland and Portuguese-speaking countries," said Qin.
230
In the past decade, the principles of "one country, two systems," "Macao people
governing Macao," and "a high degree of autonomy" were fully implemented in the
region, Qin told a regular news briefing.
Macao SAR would surely have a better future with the support of "one country, two
systems," he said.
As the 10th anniversary of the SAR approached, Macao was actively expanding
foreign exchanges, deepening regional cooperation and committed to building a global
tourism and recreation center and regional business and trade service platform, Qin said.
"Macao will surely be better off under the principle of 'one country, two systems' and
with the concerted effort of local residents and the support of the international
community."
China resumed the exercise of sovereignty over Macao on Dec. 20,1999. Chui Sai On,
chief executive-elect of Macao SAR, will be officially inaugurated next month.
Social front
• Emergency exercise conducted in HK airport (21st November)
Hong Kong International Airport (HKIA)'s emergency response capability was put
through its paces when a rescue exercise involving sea, land and air operations was
carried
out
on
Friday.
The exercise, codenamed Crash Exercise 2009, simulated an incoming flight from "Miza"
to
HKIA
that
crashed
while
landing
on
the
North
Runway.
As part of the scenario, the aircraft, carrying around 280 passengers and crew members
on board, broke into two sections, with its main fuselage coming to rest in a taxiway. And
a number of passengers were found in the nearby water west of the North Runway.
Large-scale rescue work immediately commenced when the Air Traffic Control Tower
activated the crash alarm. The first rescue team responded to the alarm and arrived at the
scene
within
two
minutes
of
the
accident.
More than 1,200 people participated in the drill and a Government Flying Service
helicopter was mobilized to help search for survivors.
• Environment biodiesel law updated in Hong Kong (21st November)
An amendment regulation was gazetted in Hong Kong on Friday to ensure that motor
vehicle
biodiesel
will
meet
the
necessary
standards.
Biodiesel is a form of renewable energy. It can be used to power motor vehicles in pure
form
or
in
blends
with
motor
vehicle
diesel.
231
The Air Pollution Control (Motor Vehicle Fuel) (Amendment) Regulation 2009 will be
tabled at the Legislative Council of Hong Kong Special Administrative Region (HKSAR)
on Nov. 25. Subject to its approval, the regulation will take effect next Jul. 1.
The Environmental Protection Department of HKSAR said it was common practice to
require motor vehicle biodiesel to follow international standards. This can boost
consumer confidence and prevent excessive exhaust emissions due to poor biodiesel
quality.
The regulation mandates the specification of biodiesel for use as motor vehicle fuel.
Labels should also be posted at selling points if the biodiesel content exceeds 5 percent.
The department said manufacturers generally accept the use of motor vehicle diesel
containing up to 5 percent biodiesel in power vehicles, but a higher content can cause
incompatibility problems. The labelling requirement, also being practiced in the
European Union and the United States, is to alert drivers to the potential incompatibility
problem.
The wider use of biodiesel instead of non-renewable fossil diesel will help reduce
greenhouse gas emissions and hinder global climate change, the department said.
Economic front
• Sands to reopen Macao resort (17th November)
Casino operator Sands China Ltd will open most of its stalled resorts in Macao by
December 2011, almost tripling its hotel rooms in the world's biggest gambling hub.
The project, an extension to the Venetian Macao, the world's biggest casino, is a
"quantum leap for Macao" as Las Vegas Sands Corp bets that more convention space,
hotel beds and shopping malls will entice visitors to prolong their stay in Macao, Michael
Leven, chief operating officer of Sands China's parent, told reporters.
Chairman Sheldon Adelson is seeking to raise as much as $3.4 billion in what could be
Hong Kong's second-biggest initial public offering this year. The offer, together with a
separate $1.75 billion in bank financing, would help the Macao subsidiary restart the 13.3
million sq feet resort that has been halted since November last year after credit markets
seized up and revenue dwindled.
"I don't think demand for Sands' shares will be strong given how Wynn's shares have
performed since their debut," said Francis Lun, a general manager at Fulbright Securities
Ltd in Hong Kong. "The money from the share sale will be enough to restart the Macao
project but they still need more because the project is huge."
Net proceeds may reach HK$14.7 billion, based on a price of HK$12.13 a share, the
midpoint of the offer range, the company said yesterday.
The company will open the second part of the project by December 2011, Leven said.
The phase, consisting of one of two Sheraton-branded hotel towers and some retail
centers, will add to the 3,700 hotel rooms and a casino with 670 tables which would open
in June 2011.
232
The project will add 6,000 hotel rooms for Sands China in Macao, compared with 3,554
it had as of June 30.
• Chardan warning hits BYD (19th November)
BYD Co, the Chinese electric-car maker backed by Warren Buffett, fell the most in two
weeks in Hong Kong after Chardan Capital Market LLC advised investors to sell the
stock following a fivefold jump in the share price.
The company dropped as much as 7.6 percent, the biggest intraday decline since Nov 2. It
closed down 6 percent at HK$64.65.
BYD is overvalued as it's trading at 37 times next year's earnings, a premium to peers,
Chardan said. Investors replicating Buffett's strategy have caused the automaker to surge
since the billionaire's Berkshire Hathaway Inc agreed to buy a stake last year.
"It's time to get off this bus," Chardan said in a note to investors on Monday. "Given that
electric vehicles remain years away from gaining meaningful penetration, we would
recommend investors take profits."
Chardan began coverage with a "sell" rating and a 12-month price target of HK$40.
That's 38 percent lower than yesterday's close.
Berkshire's MidAmerican Energy Holdings Co bought 225 million new shares of BYD
for HK$8 apiece in July. The tie-up with Buffett may help boost BYD's profile overseas
and also reassure potential customers, Chief Executive Wang Chuanfu said last year. The
automaker started selling the F3DM, the world's first mass-produced plug-in hybrid car,
in December, 2008.
The Chinese company has said it plans to sell shares on the mainland to help fund
development of its automobile business.
BYD's Wang was named China's richest man by Forbes Magazine earlier this month after
Buffett's investment helped increase his estimated personal wealth to $5.8 billion.
•
China's Longfor up 1.8 pct ahead of HK debut (18th November)
Shares of Chinese property firm Longfor Properties Co (0960.HK) were indicated 1.8
percent higher ahead of their $912 million Hong Kong trading debut on Thursday.
The property developer saw its opening price set at HK$7.20, compared with a Hong
Kong IPO price of HK$7.07, near the top end of its indicated range.
Citigroup (C.N), Morgan Stanley (MS.N) and UBS (UBSN.VX) are handling the
Longfor deal.
A glut of recent Chinese real estate offerings has met strong demand because of low
valuations and well-known cornerstone investors.
Another new listing, China Tontine Wines Group Ltd 0389.HK, saw its opening price set
at HK$1.59, up 27.2 percent from its issue price of HK$1.25.
(US$1=HK$7.75)
HSBC empowers Indonesian SMEs in tapping global trade market (19th
November)
The Hong Kong and Shanghai Banking Corporation Limited (HSBC) inked a deal on
Thursday with Small Middle Enterprises (SMEs) businesses joined in Indonesian
•
233
Business Woman Association (IWAPI), aimed at assisting the organization members in
anticipating market potentialities.
The cooperation agreement with the IWAPI also made HSBC the first foreign bank
operating in Indonesia to provide special business account particularly for Indonesian
businesswomen organization.
According to Jeffrey C Tjoeng, HSBC Indonesian Head of Business Banking, the
cooperation agreement also includes cash management and business coaching clinics for
the organization that has more than 40,000 SMEs members in 33 provinces across the
country.
"The opening of especially-administered business account is very important for them.
It would make them have effective and efficient operation system. The business coaching
clinics program that embedded with the cooperation agreement would help them to apply
best business practices that makes those Indonesian businesswomen fit to compete in
domestic and global market," Jeffery told a press conference here.
With the special business account service, HSBC provides various facilities for SMEs
firms joined in IWAPI that consisted of lower deposit if compared to that of in regular
business account, special transaction rate, free internet banking monthly fee, feasible cash
management for the rest of the customer's banking portfolios, integrated and consolidated
monthly report and24 hours e-banking service, Jeffrey added.
Prior to the agreement signing, HSBC had gradually provided 100units of computers to
enhance the operation SMEs joined in IWAPI since February this year. The computers
assistance program was intended to customize the SMEs in conduction transaction via
internet banking and consolidating the operation with their colleagues across the country
through internet.
HSBC has scheduled the business coaching sessions for the Indonesian
businesswomen on November 24 with initial subjects of "property rights" that essential in
facing more opened global market in the future.
Jeffrey said that such a service to Indonesian SMEs was part of HSBC Group mission
to empower SMEs across the work and in line with HSBC's global business principle that
says "World's Local Bank".
Macao's median monthly employment earnings remains stable in Q3 (19th
November)
The median monthly employment earnings of the employed population in Macao
amounted to 8,500 patacas (1,076 U.S. dollars) in the third quarter of this year, the same
level as that of the second quarter, according to the figures released Thursday by the
city's Statistics and Census Service (DSEC).
The figures showed that the median monthly employment earnings of the employed
residents held stable as the previous quarter in the period, at 10,000 patacas (1,265 U.S.
dollars).
Total labor force in Macao stood at 328,000 in the third quarter, with 316,000 being
employed. Analyzed by industry, the majority of the employed were engaging in
recreational, cultural, gaming and other services (23.2 percent) and hotels, restaurants and
similar activities (14.1 percent).
Meanwhile, the unemployed population was 12,000 in the period, of which 82.4
percent were searching for a new job, while 17.6 percent were fresh labor force entrants
•
234
searching for their first job. With regard to the educational attainment, 34.6 percent of the
unemployed had primary education or lower, 29 percent had junior secondary education
and 19.8 percent had senior secondary education, according to the DSEC.
• Hong Kong's October underlying CPI falls 0.3% (20th November)
The underlying consumer price index of Hong Kong for October fell 0.3 percent year on
year, statistics authority said Friday.
The composite consumer price index rose by 2.2 percent year on year, representing a
larger growth than that in September, the Census and Statistics Department of the Hong
Kong Special Administrative Region (HKSAR) government said.
However, the underlying CPI inflation, or the year-on-year rate of change after netting
out the effects of the one-off relief measures in place during October last year, remained
the same as that in September, the department said.
A spokesman for the HKSAR government attributed the slightly negative underlying
inflation rate to the absence of prices pressures, both local and external.
The recent rather stable movements of the seasonally adjusted underlying composite
CPI tend to suggest, "Deflationary pressures should be rather contained," he said.
Netting out the effects of one-off relief measures, the average monthly rate of change
in the underlying Composite CPI for the three-month period that ended in October was
0.1 percent, and that for the three-month period that ended in September was virtually nil.
Larger year-on-year increases in prices were recorded in October for electricity, gas
and water, mainly because some households had used up the full amount of HKSAR
government's one- off electricity charge subsidy.
On the other hand, declines in prices were recorded for durable goods, food, transport
and miscellaneous services.
For the first ten months of this year as a whole, the composite CPI rose by 0.4 percent
over a year earlier.
• Hong Kong stocks close 0.87% lower (20th November)
Hong Kong shares closed down 0.87 percent, or 195.96 points at 22,447.20 on Friday,
falling for a fourth day tracking losses on the Wall Street.
The benchmark Hang Seng Index opened lower at 22,486.56, falling 0.69 percent, or
156.60 points. It fluctuated between 22,584.55 and 22,376.36 during the day's trading.
The turnover moved down to 60.50 billion HK dollars (about 7.81 billion U.S. dollars)
from Thursday's 69.28 billion HK dollars (about 8.95 billion U.S. dollars).
The China Enterprises Index slid 141.31 points, or 1.05 percent, to close at 13,329.67
points.
Three of the four major stock categories lost ground. The finance sub-index dropped
0.59 percent, the properties shed 1.18 percent, and the commerce and industry fell 1.19
percent. Only the utilities sub-index moved up 0.02 percent.
Banking giant and market heavyweight HSBC dipped 0.52 percent to close at 95.05
HK dollars, while its local unit Hang Seng Bank gained 0.61 percent at 114.90 HK
dollars. HKEx, the sole exchange operator in Hong Kong, rose 0.50 percent to 141.70
HK dollars.
China Mobile, by far the largest mobile carrier in China's mainland, fell 1.03 percent to
76.65 HK dollars, while smaller rival China Unicom rose 0.19 percent to 10.50 HK
dollars.
235
The mainland banking shares all finished lower, with ICBC leading the decline by 1.46
percent to close at 6.75 HK dollars. Bank of China lost 0.21 percent, China Construction
Bank lost 0.70 percent, and Bank of Communications, 1.34 percent.
The oil shares were also losers. PetroChina moved down 1.19 percent, Sinopec edged
down 2.34 percent and offshore oil producer was unchanged.
As for local developers, Cheung Kong, the flagship of Hong Kong's richest man Li Kashing, fell 0.77 percent to 96.70 HK dollars. Henderson Land finished 1.54 percent lower
at 54.20 HK dollars. SHK Properties moved down 1.54 percent to 115.40 HK dollars.
Sino Land ended 0.71 percent higher at 14.28 HK dollars.
Consumer product exporter Li & Fung dropped 3.99 percent to close at 32.50 HK
dollars. (7.742 HK dollars = 1 U.S. dollar)
Business & Politics in the Muslim World
News Monitoring
Weekly Report
November 14, to 20, 2009
Central Asia
Uzma Siraj
Table of Contents
Azerbaijan
Political Front………………………………………………………………………4
Geo Strategic Front………………………………………………………………...4
Economic /Energy Front…………………………………………………………...5
Social Front………………………………………………………………………...5
Kazakastan
Political Front……………………………………………………………………...5
Social Front………………………………………………………………………...7
Kyrgyzstan
Political Front……………………………………………………………………...7
Geo Strategic Front………………………………………………………………..7
Economic /Energy Front…………………………………………………………..7
Social Front………………………………………………………………………..7
Tajikistan
Political Front……………………………………………………………………...8
Social Front………………………………………………………………………...9
Turkmenistan
236
Political Front………………………………………………………………………9
Social Front………………………………………………………………………..10
Uzbekistan
Political Front……………………………………………………………………..10
Geo Strategic Front………………………………………………………………..11
Social Front………………………………………………………………………..11
Outline
Azerbaijan
Political Front
• Kazakh Activist, Journalist Complain Of Pressure In Prison
• No need to accuse opposition parties: Azerbaijani MP
• We have no funds for municipal elections campaigning through media:
Azerbaijani opposition party
Geo Strategic Front
• Azerbaijani President Criticizes Armenia On Karabakh Talks
• Azerbaijan Chides Germany, Norway Over Bloggers Case
• Iranian Court Refuses To Release Azerbaijani Scientist
• Azerbaijani MP urges NATO to implement UN resolutions on Karabakh
Economic /Energy Front
• Azerbaijan may supply gas to South Stream: Russian Gas Society head
• Azerbaijani gas may flow to Germany across Europe: energy minister
• Azerbaijan, U.S. discuss energy cooperation
• Recent gas agreement between Azerbaijan and Russia was merely a symbolic
move: U.S. analyst
Social Front
• Azerbaijan marks National Revival Day
• OSCE launches implementation of Civic Action for Security and Environment
Programme in Azerbaijan
Kazakastan
Political Front
• Kazakhstan Adopts Tough Privacy Protection Law
• Majilis backs amendments to draft law "On Kazakhstan's Content"
• Kazakhstan’s court system can’t be called "a pillar of law and justice,” president
Geo Strategic Front
• Kazakhstan will not allow foreign investors to take control of key banks Nazarbayev
237
•
•
•
CNPC to build second phase of Central Asia China gas pipeline
Kazakhstan seeks raising funds from South-East Asia
Kazakh parliament again concerned about China’s growing presence in energy
sector
Social Front
• Kazakh Rights Activist Denied Access To Lawyer
• Number of Kazakhstani students studying in U.S. increasing each year
• Nazarbayev has understanding of human weaknesses and can forgive those who
repent
Kyrgyzstan
Political Front
• New Prime Minister’s representative to Parliament appointed
Geo Strategic Front
• Kyrgyz Deport Russian Rights Activist
• Kyrgyz Opposition Says Utility Hikes Will Repay World Bank Loan
• Tariffs’ rise in Kyrgyzstan has nothing to do with WB credit program
Social Front
• Ruling Party Passes Provision Promoting Kyrgyz Language
• HRW Calls For Kyrgyz Government To Release Activists
• Bishkek to host Special Children support campaign
• Week of International Education unfolds in Bishkek
• At least 30 percent of Kyrgyzstanis to get A/H1N1, WHO says
• Kyrgyzstan ranks 162 in global corruption index
Tajikistan
Political Front
• Tajik Ruling Party Rejects Postponing Elections
• Tajik ruling party rejects postponing parliamentary elections
• Our election strategy is absolutely clear – to enter parliament, says SDPT leader
• Majlisi Milli seconds new Criminal Procedure Code
• President shakes up officials
Geo Strategic Front
• SCO military experts gather in Almaty to discuss preparations for Peace Mission2010 drill
• Tajik delegation to attend Hamid Karzai inauguration in Kabul
• President signs the law on national budget for 2010
Social Front
• 70% of Tajikistan’s water supply infrastructure requires serious repairs, Tajik
official says
• Tajikistan reportedly solves teacher shortage problem
Turkmenistan
Political Front
• Minister of Internal Affairs of Turkmenistan severely reprimanded
238
Geo Strategic Front
• Turkmen foreign minister to visit Afghanistan and Ukraine
• Parliamentary delegation of Turkmenistan to visit Iran
• Turkmenistan government reviews draft state budget for 2010
• CIS agriculture ministers to meet in Ashgabat
• International exhibition "Oil and Gas of Turkmenistan-2009" begins in Ashgabat
• World leading oil and gas companies attend "Oil and Gas of Turkmenistan 2009" exhibition
Social Front
• Badkhyz and Gonur Depe to be nominated for inclusion in UNESCO World
Heritage List
Uzbekistan
Political Front
• Muslim Women Arrested In Southern Uzbekistan
• Uzbekistan: Eler Ganiev is a new deputy Prime-Minister
Geo Strategic Front
• Uzbeks Skip Regional Security Meeting In Kazakhstan
• Uzbekistan: Senior US diplomat visits Tashkent
• Uzbekistan: At least 30 Muslim women are arrested in the Kashkadaria Oblast
Social Front
• UZBEKISTAN: Repression of Muslim and Christian religious activity continues
• Uzbekistan: Free Human Rights Defender
Summery
Azerbaijan
Political Front
An official in Azerbaijani President Ilham Aliyev's administration says the international
community's reaction to the case of two bloggers given jail sentences last week is biased,
RFE/RL's Azerbaijani Service reports.
“Musavat Party voiced its stance on election commissions. But party’s views did not
coincide with that of Umid Party,” Azerbaijani member of parliament Panah Huseyn said
commenting on differences inside the opposition Movement for Karabakh and Republic.
• We have no funds for municipal elections campaigning through media:
“Our party has nominated over 700 candidates in 635 municipalities,” Azerbaijan’s
opposition Great Establishment Party Chairman Fazil Mustafa said.
“We will start preparations for the election campaign as soon as registration of
candidates completes. Nearly 400 members of our party has already been registered,”
Mustafa said.
Geo Strategic Front
239
BAKU -- Azerbaijani President Ilham Aliyev has accused Armenia of delaying efforts to
resolve the conflict over the disputed territory of Nagorno-Karabakh, RFE/RL's
Azerbaijani Service reports.Speaking at the opening of an apartment building in Baku for
369 internally displaced families on November 17, Aliyev said that although the OSCE
Minsk Group was established in 1992 to resolve the Karabakh dispute,
Azerbaijani bloggers Emin Milli (left) and Adnan Hajizada in custody outside the
courtroom last week,The Azerbaijani Foreign Ministry has accused Germany and
Norway of interference in Baku's internal affairs, RFE/RL's Azerbaijani Service reports.
A Tehran court has refused to grant bail to an Azerbaijani scientist being held on stillunclear charges, RFE/RL's Azerbaijani Service reports. Azerbaijani physicist Rashid
Aliyev, who had worked for the Iranian Sazan Electronics Industry Company (SEIC),
was arrested on October 5 upon arriving in Tehran from Azerbaijan.
Azerbaijani parliamentarians Gudrat Hasanguliyev and Zahid Oruj made speeches at the
meeting of the Defense and Security Committee within the frames of the 55th session of
NATO Parliamentary Assembly (PA).
Russia would welcome Azerbaijan’s participation in the South Stream project, State
Duma vice-speaker and president of the Russian Gas Society Valery Yazev said. He said
Azerbaijan has all opportunities to take part in the project, especially by providing its
natural gas.“
If the Nabucco gas pipeline is implemented, Azerbaijani gas will be flowing to Germany
across Europe, said Natig Aliyev, Azerbaijan’s Minister of Industry and Energy. He said
Nabucco is the most important project for the European Union and there are several
arrangements.
Azerbaijan`s Foreign Minister Elmar Mammadyarov met senior assistant to U.S. Special
Envoy for Eurasian Energy Daniel Stein on Nov. 18. Stein praised “long-standing”
energy cooperation between the two countries. He noted ensuring global energy security
is one of the US foreign policy priorities, adding “the United States supports
diversification of energy resources”. Mammadyarov also hailed the energy cooperation
between Azerbaijan and USA.
move: U.S. analyst
“Azerbaijan is key country for Europe in Caspian region," research assistant of
international security program, research director and Caspian studies project at the Belfer
center, Brenda Shaffer said. She said that for Europe and the broader West, the most
important energy producing country in the Caspian region is Azerbaijan.“
Social Front
November 17 is celebrated as the National Revival Day in Azerbaijan. Hundreds of
thousands Azerbaijanis gathered in Azadlig (Liberty) Square in Baku on November 18,
240
1988 protesting the double-standard policy of Moscow toward Azerbaijan and founded
the process, known in the newest history of Azerbaijan as “Meydan Herekati” (“Square
Movement”.
OSCE has begun implementing Civic Action for Security and Environment (CASE)
Programme in Azerbaijan. A meeting was held with the representatives of civil society in
OSCE Office in Baku.
Kazakastan
Political Front
Opposition leader Zharmakhan Tuyakbai described the bill as ''yet another attempt to shut
everyone up.''ASTANA (Reuters) -- Kazakhstan has approved a bill introducing tougher
punishment for invasion of privacy in a move condemned by the opposition as an attack
on press freedom. Democracy, media freedom, and human rights are under intense
scrutiny in Kazakhstan as the Central Asian state prepares to take the helm of the
Organization for Security and Cooperation in Europe (OSCE) in 2010. Kazakhstan's
upper house of parliament approved the bill unanimously.
ALMATY -- Yevgeny Zhovtis and Tohniyaz Kuchukov say that prison officials have put
pressure on them to sign disadvantageous work contracts, RFE/RL's Kazakh Service
reports. Zhovtis is the director of the Almaty-based Kazakh Bureau for Human Rights
and Kuchukov is a journalist for the newspaper
– Majilis, the lower chamber of the Kazakh parliament, endorsed the amendments to the
draft law "On Kazakhstan's Content" in the first reading."The draft law provides for
introducing monitoring of domestic producers. (...) In order to support Kazakhstan’s
producers, we have to introduce a single terminology, distribute the scope of
responsibilities among the state agencies in the monitoring the Kazakh content and
designate administrative responsibility,”
Kazakhstan’s court system is facing a lot of unresolved issues, Kazakh president
Nursultan Nazarbayev said."A lot has been done for the judicial power, therefore, we
have the right to expect the judiciary establishment to be a pillar of law and justice,”
Kazakh president said at the fifth assembly of judges on Wednesday in Astana.
Geo Strategic Front
• Kazakhstan will not allow foreign investors to take control of key banks –
Nazarbayev
- Kazakhstan will not allow foreign investors to take control over key Kazakh banks,
President Nursultan Nazarbayev said in a televised question and answer session on
Friday.“We know that the presence of foreign banks in the country is beneficial. It creates
competition, allows lower rates […] but we will not allow foreign bankers to fully control
systemically important banks,” Nazarbayev said.
241
• CNPC to build second phase of Central Asia China gas pipeline
According to an official with the Planning and Engineering Institute of PetroChina,
CNPC the parent company of PetroChina is conducting the preparatory work to build the
second phase of the Central Asia-China natural gas pipeline from Kazakhstan Beyneu to
Shymmken. Speaking at the Asia Pipeline Summit 2009 in Beijing, the official said that
cooperation partners from China and Kazakhstan are also having talks on financing,
shares structure and other issues on the pipeline.
• Kazakhstan seeks raising funds from South-East Asia
Within the program of advanced industrial innovative development Kazakhstan plans to
raise funds from Malaysia, Minister of Industry and Trade said. According to the press
office of the Ministry, the Kazakh delegation led by the Vice Minister of Industry and
Trade Yerkhat Iskaliyev will present business projects at the Kazakh-Malaysian forum in
Kuala-Lumpur in an attempt to raise funds from the South-East Asia, in particular
Malaysia, to fuel industrialization and development of priority projects.
• Kazakh parliament again concerned about China’s growing presence in energy
sector
Tasbai Simambayev, a member of the Senate (the upper chamber of the Kazakh
parliament), has proposed that Kazakhstan should not sell any more oil and gas assets to
Chinese companies.“We should start thinking about the future of Kazakhstan, about our
children and grandchildren and keep a strong grip on our strategic assets, in spite of the
crisis,” he told a Thursday plenary meeting of the Senate.
Social Front
The imprisoned director of the Kazakh Bureau for Human Rights, Yevgeny Zhovtis, has
been denied access to his lawyer, RFE/RL's Kazakh Service reports. Zhovtis's lawyer,
Vitaly Voronov, was not allowed to meet Zhovtis on November 17.
The number of students from Kazakhstan enrolled in U.S. institutions of higher education
increased from 1,456 to 1,714, a 18% increase over the 2007/08 academic year, the U.S.
Embassy in Kazakhstan says in a Tuesday press release. The embassy refers to Open
Doors 2009, the annual report on international academic mobility published by the
Institute of International Education (IIE) with support from the Bureau of Educational
and Cultural Affairs of the United States Department of State.
repent
– Kazakh President Nursultan Nazarbayev says he is not a man to bear grudges and can
forgive if asked to."I can be a forgiving person unless it does not affect my work and my
country. In general, I am not a vengeful person. I am not a person who can bear grudges
Kyrgyzstan
Political Front
Kambaraly Kongantiev was appointed a new representative of the Kyrgyz Prime Minister
to the Parliament, Ulugbek Ormonov, leader of Ak Zhol fraction said at the session
Wednesday.
Geo Strategic Front
242
A Russian human rights activist, Bahrom Hamroev, has been deported from Kyrgyzstan
while gathering information connected with his work, RFE/RL's Kyrgyz Service reports.
Kyrgyz opposition leader Omurbek Tekebaev says the government will use increased
payments from steep rises in utility prices to repay a $30 million World Bank loan,
RFE/RL's Kyrgyz Service reports. Tekebaev, the leader of the Ata-Meken (Fatherland)
party, told RFE/RL on November 17 that by increasing public utility fees the government
"solves two [of its] problems."
Energy tariffs’ increase is the exclusive prerogative of the country and has nothing to do
with the credit program of the World Bank, the WB office in Bishkek reported Tuesday.
The statement is connected with information of some mass media that the decision on the
tariffs’ increase has been made under pressure of the WB delegation which visited
Bishkek on October 31-November 4, 2009
Social Front
Kyrgyzstan's dominant, pro-presidential Ak-Jol (Bright Path) party has approved a
provision that would require its diplomats to understand the Kyrgyz language, RFE/RL's
Kyrgyz Service reports.
Human Rights Watch (HRW) is urging the government of Kyrgyzstan to release two
human rights activists who were investigating alleged rights abuses in the south of the
country. HRW says security officials detained Bakhrom Hamroev and Izzatilla
Rakhmatillaev on November 18 in Osh, in southern Kyrgyzstan.
On the occasion of the International Day of Disabled Persons, marked on December 3,
Bishkek will host a charity campaign to support children with special needs in
Kyrgyzstan.
Week of international education will take place in the Bishkek National children’s and
youth Library of K. Bayalinov, the Soros-Kyrgyzstan Foundation reported.
According to predictions of the World Health organization, at least 30 percent of
population will get A/H1N1 influenza over pandemic season in Kyrgyzstan, Zuridin
Nurmatov, chief of the sanitary and epidemiological control department under the Kyrgyz
Health Care Ministry told the news agency 24.kg.
Kyrgyzstan was ranked 162nd in Transparency International's Corruption Perception
Index (CPI) which was released Tuesday. Kyrgyzstan moved up four spots from its 2008
ranking, with a score of 1.9 out of 10. Kyrgyzstan has started its gradual falling since
2003, when it ranked 118th.
Tajikistan
Political Front
243
The ruling People's Democratic Party (PDP) of Tajikistan has rejected a proposal to
reschedule the 2010 parliamentary elections, RFE/RL's Tajik Service reports. Rahmatullo
Zoirov, the leader of the Social Democratic Party, has proposed to postpone the February
elections until April. Zoirov pointed out that severe weather conditions and an energy
shortage as big obstacles for the election campaign.
The ruling People's Democratic Party (PDPT) of Tajikistan has rejected a proposal to
reschedule the 2010 parliamentary elections, Radio Liberty’s Tajik Service reported on
November 14. Rahmatillo Zoirov, the leader of the Social Democratic Party, has
proposed to postpone the February elections until April.
-- Our party does not prepare any surprise for the upcoming parliamentary elections and
our election strategy is absolutely clear – to enter parliament, Rahmatillo Zoirov, the
leader of the Social-Democratic Party (SDPT), told reporters in Khorog, the capital of
Gorno Badakhshan on November 14
Members of Tajikistan’s upper house (Majlisi Milli) of parliament have unanimously
seconded a new national criminal procedure code. The 22nd session of the Majlisi Milli
of the third convocation, presided over by its speaker, Mahmadsaid Ubaidulloyev, was
held on November 19.
-- President Emomali Rahmon introduced a number of staff changes on November 18.
According to presidential press service, Dodikhudo Saymuddinov, formerly deputy of the
Majlisi Namoyandagon (Tajikistan’s lower chamber of parliament), was appointed to
head the Committee on Language and Terminology under the Government of Tajikistan.
Geo Strategic Front
Military experts from member nations of the Shanghai Cooperation Organization today
gathered in Almaty, Kazakhstan for the third round of staff negotiations on preparations
for a joint military drill, dubbed, Peace Mission-2010. According to the Tajik Ministry of
Defense (MoD), Major-General Z.T. Bobokalonov, the first deputy head of the MoD
General Staff, is representing Tajikistan at the negotiations in Almaty.
Tajik delegation, led by Foreign Minister Hamrokhon Zarifi, will attend Hamid Karzai
inauguration that will take place in Kabul on November 19. According to the MFA
information department, the Tajik delegation will fly to Kabul tomorrow morning.
On Saturday November 14, President Emomali Rahmon signed the RT Law “On the
National Budget of the Republic of Tajikistan for 2010,” according to presidential press
service. Compared to the budget for this year, the national budget for 2010 is increased
by 748.5 million somoni.
Social Front
official says
244
70 percent of Tajikistan’s water supply infrastructure has become obsolete and requires
serious repairs, the First Deputy Prime Minister Asadullo Ghulomov remarked at a
ceremony of presentation of the Water Supply and Sanitation in Tajikistan Project of the
Swiss Agency for Development and Cooperation (SDC) in Dushanbe.
According to Tajik Minister of Education Abdjabbor Rahmonov, one of the most
important problems facing the country’s education sector -- shortage of teachers -- has
been practically solved. “In Dushanbe, the teacher shortage problem has been solved
completely,” said the minister, “However, there are inconsiderable teachers shortages in
the provinces.
Turkmenistan
Political Front
President Gurbanguly Berdimuhamedov signed a resolution severely reprimanding
Minister of Internal Affairs of Turkmenistan Isgender Mulikov.
Geo Strategic Front
On instructions of President of Turkmenistan Gurbanguly Berdimuhamedov, Vice
Premier, Minister of Foreign Affairs of Turkmenistan Rashid Meredov will visit the city
of Kabul to participate in the inauguration of the newly elected President of the Islamic
Republic of Afghanistan on 19 November, the Turkmenistan.ru correspondent reports
On instructions of President of Turkmenistan Gurbanguly Berdimuhamedov, the
delegation of deputies of the Mejlis of Turkmenistan led by the speaker of the Mejlis of
Turkmenistan, Akja Nurberdiyeva, will visit the Islamic Republic of Iran (Teheran).
A draft state budget for 2010 was reviewed at a regular meeting of the Government of
Turkmenistan. According to the Turkmen TV, the 2010 budget planners were guided by
the successful outcome of the socio-economic development of Turkmenistan to be
achieved on the results of 2009.
The agriculture ministers of the CIS countries will meet in Ashgabat to discuss ways of
development of the agro-industrial complex in the post-crisis period, ITAR-TASS
reported referring to the Director of the Department of Economic Cooperation of the CIS
Executive Committee, Andrei Kushnirenko. The ministerial meeting will take place as
part of the 1st Forum of agricultural producers of the CIS countries to be held in the
Turkmen capital on November 25-27.
The 14th International Exhibition "Oil and Gas of Turkmenistan-2009" kicked off at the
Main Exhibition Palace of Ashgabat today. It was organized by the Chamber of
Commerce and Industry and the Ministry of Oil and Mineral Resources of Turkmenistan.
The 14th International Exhibition "Oil and Gas of Turkmenistan-2009" and the
international scientific-practical conference that brought together over 400 foreign
245
participants wrapped up in Ashgabat, the Turkmenistan.ru correspondent reports. The
forum was attended by over 200 world-renowned oil and gas and service companies
including Petronas, Dragon Oil, CNPC, Gazprom, Lukoil, Wintershall , Komatsu LTD,
RWE AG, OMV, British Petroleum, Chevron, Total and others, as well as governmental
and international organizations from 35 countries
Social Front
Heritage List
The National Commission of Turkmenistan for UNESCO has conducted training
seminars for staff of the State Nature Reserve "Badkhyz," the State Historical and
Cultural Reserve "Ancient Merv" and all other historical and cultural reserves of the
country.
Uzbekistan
Political Front
Some 30 women have been arrested in the southern Uzbek city of Karshi since the
beginning of November, RFE/RL's Uzbek Service reports. Mehriniso Hamdamova, 40, a
teacher of a religious course for women at Karshi's Kuk Gumbaz Mosque, is the latest
woman to have been arrested. Hamdamova's daughter,
Eler Ganiev, the Minister for foreign economic relations, investment and trade in
Uzbekistan, is appointed as the deputy Prime-Minister of the republic. Therefore,
according to web-site of Uzbek government, he took over 7th vacant spot in the list of
deputies of Prime-Minister. Meanwhile, Ganiev kept his position as the minister while as
deputy Prime-Minister he will be responsible for economic relations.
Geo Strategic Front
The Shanghai Cooperation Organization (SCO) has begun a third round of discussions in
Almaty about upcoming counterterrorism exercises, RFE/RL's Kazakh Service reports.
Representatives from SCO members Kazakhstan, Kyrgyzstan, Russia, Tajikistan, and
China also visited the Otar training grounds in southeastern Kazakhstan, where the
maneuvers involving some 10,000 troops are to be held next year.
US Deputy Assistant Secretary for South and Central Asian Affairs, George Krol, is in
Uzbekistan for a series of high-level meetings."He is here for a couple days and will have
meetings with government and non-governmental people.
Since the beginning of November at least 30 Muslim women have been arrested in the
city of Karshi in the Kashkadaria Oblast of Uzbekistan. The Initiative Group of
Independent Human Rights Activists of Uzbekistan (IGIHRAU) reports that the reason of
detention is not shared even with close relatives
Social Front
246
Mekhrinisso Hamdamova, a Muslim holding a state appointment, has been arrested for
holding unauthorised religious meetings in her home, Forum 18 News Service has
learned. She faces very serious charges, the authorities claiming that she was attempting
to overthrow the President and the "constitutional order", and inciting religious hatred.
Reuters and AlertNet are not responsible for the content of this article or for any external
internet sites. The views expressed are the author's alone. Uzbek authorities should
immediately release the human rights defender and farmers' rights activist Ganikhon
Mamatkhanov, who is facing trial on politically motivated charges, Human Rights Watch
said today.
Detailed Report
Azerbaijan
Political Front
• Baku Official Slams 'Bias' Over Blogger Verdicts
An official in Azerbaijani President Ilham Aliyev's administration says the international
community's reaction to the case of two bloggers given jail sentences last week is biased,
RFE/RL's Azerbaijani Service reports. Ali Hasanov, head of the Azerbaijani president's
Social and Political Affairs Department, said Azerbaijani law "applies equally to
everyone and there is no special treatment for intellectuals and those who are closer to the
West, like the bloggers." A Baku court on November 11 sentenced Adnan Hajizada and
Emin Milli to two and 2 1/2 years in prison, respectively, on hooliganism charges for an
altercation at a Baku restaurant on July 8.
International organizations such as the Council of Europe and the Organization for
Security and Cooperation in Europe have strongly condemned the case and said the
charges against the bloggers are politically motivated. Hasanov said the Azerbaijani
courts are independent and the government cannot influence judicial verdicts. He added
that "if the bloggers disagree with the court's verdict, they can take their case to the
European Court of Human Rights." Hasanov said many Azerbaijanis are charged with
hooliganism every year but international organizations do not protest against those
convictions. He countered that "the state of freedom of speech in Azerbaijan is not worse
than that in France, Germany, and Italy."
“Musavat Party voiced its stance on election commissions. But party’s views did not
coincide with that of Umid Party,” Azerbaijani member of parliament Panah Huseyn said
commenting on differences inside the opposition Movement for Karabakh and Republic.
He said the movement holds no meeting at the moment. “The representatives of the
Movement have already made statements on this issue. I think there is no need to accuse
anybody,” he said. Musavat Party, member of the Movement for Karabakh and Republic,
urged Umid Party to withdraw its members from the electoral commissions. Umid Party
stated that it will do so if the members of the parliamentary group of the Musavat
renounce their mandates. The recent tension between the two parties has caused a serious
crisis in the movement. The Movement for Karabakh and Republic was established by
the Azerbaijan Popular Front Party, Citizens and Development, Liberal, Democratic,
Musavat, Umid prior to the referendum on amendments and additions to the Constitution
which took place on March 18, 2009.
247
•
We have no funds for municipal elections campaigning through media:
“Our party has nominated over 700 candidates in 635 municipalities,” Azerbaijan’s
opposition Great Establishment Party Chairman Fazil Mustafa said.
“We will start preparations for the election campaign as soon as registration of
candidates completes. Nearly 400 members of our party has already been registered,”
Mustafa said. “Surely we are not able to get free election campaign in the media, because
our party will not nominate candidates for half of the municipalities in the country.
Though we do not have enough funds to buy time in media our candidates we will still
seek campaigning through the media,” he said. “We plan to spend about 3,000 manats.
About 700-800 manat has already been spent for registration of candidates and other
procedures. This sum also includes campaigning of candidates in the media. We have no
opportunity to stage wide range of activities as part of the election campaign,” he said.
Azerbaijan will hold municipal elections on Dec. 23. The candidates will contest 15,682
places in 1,718 municipalities.
Geo Strategic Front
Armenian soldiers on parade in Stepanakert, the capital of Nagorno-Karabakh.
November 19, 2009
BAKU -- Azerbaijani President Ilham Aliyev has accused Armenia of delaying efforts to
resolve the conflict over the disputed territory of Nagorno-Karabakh, RFE/RL's
Azerbaijani Service reports.Speaking at the opening of an apartment building in Baku for
369 internally displaced families on November 17, Aliyev said that although the OSCE
Minsk Group was established in 1992 to resolve the Karabakh dispute, he said there have
been no results from their activities. Aliyev said the main issue in the OSCE-led talks
with the Armenians is the "withdrawal of Armenian troops from all seven occupied
territories," referring to the Azerbaijani areas around Nagorno-Karabakh that are
occupied by Armenian forces. Aliyev said Azerbaijanis who have been displaced from
those territories and Karabakh are "also part of the discussion" and act as "a stimulus for
us to participate in negotiations."He said Armenian negotiators "keep dragging their feet
over issues and prolonging the negotiations." But Aliyev said such a tactic "will not give
them anything," and that Armenia's goal is to "populate our lands with Armenians, but
they don't have enough people.”Aliyev said that Armenia’s population has fallen to 1.7
million (contradicting an official estimate of 3.26 million in 2008.) “It will be difficult for
them to defend their front line," he said. In contrast, he continued, "Azerbaijan's
opportunities, economy, and demography are growing. Our population is already 9
million. In five or six years we are going to be 10 million." Aliyev predicted that in a few
years, the Azerbaijani economy will be 13-15 times larger than Armenia's. Aliyev and
Armenian President Serzh Sarkisian will meet under the auspices of the OSCE at the
French Consulate in Munich on November 22 for further talks on Karabakh.
Azerbaijani bloggers Emin Milli (left) and Adnan Hajizada in custody outside the
courtroom last week,The Azerbaijani Foreign Ministry has accused Germany and
Norway of interference in Baku's internal affairs, RFE/RL's Azerbaijani Service reports.
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The charge d'affaires at the Norwegian and German embassies in Baku, Lars Hansen and
Peter Zigler respectively, were called to the Azerbaijani Foreign Ministry on November
16 to discuss criticism on November 11-12 by Oslo and Berlin of Azerbaijan's
prosecutions of opposition bloggers Adnan Hajizada and Emin Milli. Deputy Foreign
Minister Vagif Sadygov said the criticism from the two countries is "baseless,
unacceptable and is below the level of Azerbaijan's relations with other countries."
Sadygov said the trial of the two bloggers complied with Azerbaijani law and was
transparent. A Baku court on November 11 sentenced Hajizada to two years and Milli to
2 1/2 years in prison on hooliganism charges for an altercation at a Baku restaurant on
July 8. International organizations such as the Council of Europe and the Organization for
Security and Cooperation in Europe have strongly condemned the case and said the
charges against the bloggers are politically motivated. Meanwhile, 34 members of the
Norwegian-based Human Rights House Network sent a letter to Azerbaijani officials on
November 16 condemning what they say is an "unfair sentence" for the bloggers and
calling on them to protect democratic values and the right to free speech.
TEHRAN -- A Tehran court has refused to grant bail to an Azerbaijani scientist being
held on still-unclear charges, RFE/RL's Azerbaijani Service reports. Azerbaijani physicist
Rashid Aliyev, who had worked for the Iranian Sazan Electronics Industry Company
(SEIC), was arrested on October 5 upon arriving in Tehran from Azerbaijan. Soltangamid
Melikov, the chairman of the Committee to Protect Aliyev, told RFE/RL that SEIC
President Abbas Iftihari had offered $100,000 in bail to the Iranian court to secure
Aliyev's release, but that the court rejected the offer on November 13. Melikov said no
explanation was given by the court. Aliyev is in Tehran's Evin prison and has been
allowed to speak to his family once a week. Aliyev, a top physicist at Baku State
University, worked for the SEIC from 2006 to 2008. He was invited to Iran by the SEIC
last month when he was arrested. Azerbaijani Foreign Ministry spokesman Elkhan
Polukhov said it has sent an official note to the Iranian Foreign Ministry asking for an
explanation of Aliyev's arrest but has received no response. The Iranian Embassy in Baku
has refused to comment.
Azerbaijani parliamentarians Gudrat Hasanguliyev and Zahid Oruj made speeches at the
meeting of the Defense and Security Committee within the frames of the 55th session of
NATO Parliamentary Assembly (PA). Zahid Oruj said that during the discussions on the
new strategic conception of NATO Hasanguliyev called on the organization to implement
the resolutions adopted by the UN.“NATO should defend Azerbaijan,” Hasanguliyev said
and underlined that otherwise, security will not be firm in the region, stability may be
violated anytime, new military conflict will be inevitable. Oruj noted that NATO’s
approach to the settlement of the Balkan conflicts differed from its approach to the
aggressive policy in the South Caucasus, particularly Russia-Georgia war and occupation
of Azerbaijani territories by Armenia.“This is connected with Russian factor,” he
said.Zahid Oruj said the fair solution to the conflicts in the South Caucasus should hold
an important place in NATO future conception. Final meeting of the 55th session of
NATO PA will be held on Nov. 17 during which NATO Secretary General Anders Fogh
Rasmussen will make a report.
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Russia would welcome Azerbaijan’s participation in the South Stream project, State
Duma vice-speaker and president of the Russian Gas Society Valery Yazev said. He said
Azerbaijan has all opportunities to take part in the project, especially by providing its
natural gas.“Gas fields with very significant reserves will go on stream in Azerbaijan in
2014-2015. South Stream can be one of the ways for Azerbaijan to transport its energy
resources to world markets,” he noted.
If the Nabucco gas pipeline is implemented, Azerbaijani gas will be flowing to Germany
across Europe, said Natig Aliyev, Azerbaijan’s Minister of Industry and Energy. He said
Nabucco is the most important project for the European Union and there are several
arrangements. The issue of financing is under discussion now, he said. The minister noted
that if the project goes through, the Azerbaijani gas will be transported from Greece to
Bulgaria and onto other European countries including Germany. "For this, it is possible to
build a 90-kilometer gas pipeline from Greece to Bulgaria. All this must be analyzed and
evaluated. One of the main goals is to obtain a net profit with less cost for
transportation,” he added. Azerbaijan will continue cooperation with the EU in all levels,
he added.
Azerbaijan`s Foreign Minister Elmar Mammadyarov met senior assistant to U.S. Special
Envoy for Eurasian Energy Daniel Stein on Nov. 18. Stein praised “long-standing”
energy cooperation between the two countries. He noted ensuring global energy security
is one of the US foreign policy priorities, adding “the United States supports
diversification of energy resources”. Mammadyarov also hailed the energy cooperation
between Azerbaijan and USA. The Foreign Minister stressed Azerbaijan has “important
geographical location to export energy resources.” “This also makes us a favorable transit
country with respect to delivery of energy resources to the world markets.”
Energy analysts comment on US proposal to mediate in Turkmen-Azerbaijan disputes
over Caspian Sea status
US energy analysts in Washington DC are skeptical about United States proposal to
mediate in Turkmen-Azerbaijan disputes over the Caspian Sea status. “This is a long
standing offer from US Government going back 20 years to all the littoral states of the
Caspian," Edward C. Chow, energy analyst at Center for Strategic and International
Studies, said. The United States offers its mediating mission in Turkmen-Azerbaijan
disputes over the Caspian status, Senior Adviser to U.S. State Department Special Envoy
for Eurasian Energy Affairs Daniel Stein said at a press conference in Ashgabat
yesterday. Speaking about the roots of the problem, Mr. Chow reminded that this summer
Turkmenistan’s president said that his country might apply to international court to solve
the disputes over the Caspian sea .“It takes two countries to agree to international
arbitration; it is not something one country can unilaterally demand," expert added.
Commenting on US’ initiative, Mr. Chow says that, “part of what Dan Stein is referring
to is that Ashgabat and Baku can bilaterally agree to let certain oil and gas development
proceed in their disputed sector without a five-party agreement. For example, the
Russians and Kazakhs are already proceeding with joint field development in their
connected sector. Another expert, Senior Fellow of Peterson Institute for International
Economics Anders Aslund believes that, the main aid the US can provide is simply
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political and diplomatic: to engage with the countries in the region and clearly pronounce
its position of open and alternative pipelines to avoid Gazprom monopoly.“It remains to
be seen if this constitutes a long-term change of Ashgabat position or whether continued
talks and discussions can return the situation to the positive climate that was dominant
before." Svante Cornell, Research Director of the Central Asia-Caucasus Institute said.
He stressed that “in a gradual and broader improvement of relations between Azerbaijan
and Turkmenistan that is not only in the energy sphere, which builds trusts and networks
of contacts between the countries and particularly their leadership. That will necessarily
take time."“Unfortunately, at the moment, Baku and Ashgabat are in the midst of a
dispute over Caspian basin reserves. I hope the US government underlines the importance
of export diversification for Turkmenistan, particularly the Western-oriented option,
probably Nabucco, due to the fact that unlike options to China and Russia, the Westernoriented route brings with it all kinds of related investment, diplomatic links and
incentives for regional integration and strengthened independence” Alexandros Petersen,
Associate Director of Eurasia Energy Center at Atlantic Council of the United States,
said. He mentioned that the primary objective of the U.S. in terms of Eurasia’s energy
geopolitics is to see the development of market-oriented projects, particularly those that
simultaneously open the countries of the Black Sea-Caspian region to world markets and
global diplomatic links, and tie the EU and Eurasian countries more closely together.
“This policy does not exclude Russia. So far, it is Russian policies that have excluded
Russia from a process of greater energy and political independence for the countries of
Eurasia."
move: U.S. analyst
“Azerbaijan is key country for Europe in Caspian region," research assistant of
international security program, research director and Caspian studies project at the Belfer
center, Brenda Shaffer said. She said that for Europe and the broader West, the most
important energy producing country in the Caspian region is Azerbaijan.“This is because
Azerbaijan not only has significant reserves of its own, but it is also a gateway to vast
reserves on the Caspian’s eastern shore and further into Central Asia, including
Turkmenistan, Kazakhstan and Uzbekistan”.She said Azerbaijan is also important
because it is already supplying Western countries with oil through the Baku-TbilisiCeyhan pipeline, its gas goes through the South Caucasus Pipeline and it is the most
likely producer country at the moment to supply the Nabucco gas pipeline.“The recent
agreement signed between Baku and Moscow for 0.5 bcm yearly exports to Russia was
merely a symbolic move. The volume of gas exported is very low and does not present a
significant shift in terms of Azerbaijan’s energy orientation. In fact, the main result of the
deal was to speed up the Nabucco signing process," analyst added.
Social Front
November 17 is celebrated as the National Revival Day in Azerbaijan. Hundreds of
thousands Azerbaijanis gathered in Azadlig (Liberty) Square in Baku on November 18,
1988 protesting the double-standard policy of Moscow toward Azerbaijan and founded
the process, known in the newest history of Azerbaijan as “Meydan Herekati” (“Square
Movement”). 20th anniversary of the Square Movement is celebrated today. Armenia’s
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territorial claim against Azerbaijan, separatist actions of Armenians living in NagornoKarabakh and expelling of hundreds of thousands Azerbaijanis from their homelands laid
foundation of the Square Movement. The people took initiative to prevent these problems
arisen from the non-persistent policy of Moscow and local authorities and gathered in the
central square of Baku on November 17 and began the mass protest action.
It was the largest protest action in former USSR. Millions of people joined the protest
action, which lasted for 17 days. Most of local and foreign researchers studying the
collapse of USSR said that the Square Movement of Azerbaijan played important role in
this process. It was beginning of national liberation movement. The National Revival Day
is celebrated in a state level, but according to amendments to the national legislation
made in 2006 it is working day in Azerbaijan.
OSCE has begun implementing Civic Action for Security and Environment (CASE)
Programme in Azerbaijan. A meeting was held with the representatives of civil society in
OSCE Office in Baku. The programme supporting the civil society’s initiatives
concerning security and environment is financed by Statoil company and the government
of Austria. Melissa Stone, the Deputy Head of the OSCE Office in Baku said security and
environment were very important in OSCE member states in terms of stability and
flourishing. Representative of ecology and Natural Resources Ministry Amil Safiyev said
that the ministry was also implementing similar program on the protection of
environment. He said there were programmes to improve the ecological state of the
Caspian, clear oil-contaminated lands in Bibiheybet, improve sewerage system. Amil
Safiyev noted that environment would be the priority in Azerbaijan next year.
Kazakastan
Political Front
Opposition leader Zharmakhan Tuyakbai described the bill as ''yet another attempt to shut
everyone up.''ASTANA (Reuters) -- Kazakhstan has approved a bill introducing tougher
punishment for invasion of privacy in a move condemned by the opposition as an attack
on press freedom. Democracy, media freedom, and human rights are under intense
scrutiny in Kazakhstan as the Central Asian state prepares to take the helm of the
Organization for Security and Cooperation in Europe (OSCE) in 2010. Kazakhstan's
upper house of parliament approved the bill unanimously. President Nursultan Nazarbaev
now needs to sign it into law -- largely a formality. Nazarbaev's opponents have said that
the new law, which introduces jail terms for crimes against privacy, would further limit
freedom of speech in a country where mainstream media never criticize the president.
"This is yet another attempt to shut everyone up," opposition leader Zharmakhan
Tuyakbai said last week commenting on the draft law. International rights groups say
Kazakhstan, a former Soviet republic that has never held elections judged free and fair by
the OSCE itself, has not fulfilled its promises to bring more democracy and continued to
crack down on political dissent. The government has rejected accusations of intolerance
to dissent and biased trials against its critics. Adil Soz, a media rights group, urged
parliament last month to reject the latest draft, saying it was too tough and would give the
authorities an excuse to silence independent or investigative reporting. The government
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says the law would help protect people's rights and curb crimes against privacy such as
publishing data on people's savings or private correspondence without their consent. The
bill follows a series of leaks of what appears to be private conversations between former
and current senior officials posted on various websites, including YouTube. Earlier this
year, Kazakhstan adopted a law allowing the government to block websites posting
"illegal" information.
ALMATY -- Yevgeny Zhovtis and Tohniyaz Kuchukov say that prison officials have put
pressure on them to sign disadvantageous work contracts, RFE/RL's Kazakh Service
reports. Zhovtis is the director of the Almaty-based Kazakh Bureau for Human Rights
and Kuchukov is a journalist for the newspaper "Vremya."In a joint statement published
by several independent media outlets, the two said that the management of their prison
near the northeastern city of Ust-Kamenogorsk is forcing them to sign a work contract
with the Yenbek-Oskemen company. Doing so would deny them the right to sign
contracts with a company that has offered Zhovtis a job as a human rights consultant and
Kuchukov work as a journalist. They say prison officials have threatened to transfer them
to a prison that has a harsher regime than Ust-Kamenogorsk if they don't agree to sign the
contract. Zhovtis and Kuchukov were each sentenced to four years in prison in September
for their roles in deadly traffic accidents. In October they were transferred from an
Almaty prison to their current one. Human rights organizations say the charges against
the two men are politically motivated because of their professional activities.
Astana. November 12. Interfax-Kazakhstan – Majilis, the lower chamber of the Kazakh
parliament, endorsed the amendments to the draft law "On Kazakhstan's Content" in the
first reading."The draft law provides for introducing monitoring of domestic producers.
(...) In order to support Kazakhstan’s producers, we have to introduce a single
terminology, distribute the scope of responsibilities among the state agencies in the
monitoring the Kazakh content and designate administrative responsibility,” Industry and
Trade Vice Minister Yerkhat Iskaliyev said presetting the bill in the parliament. Iskaliyev
specified that the Ministry of Energy and Mineral resources will oversee the Kazakh
contend in extractive industries, the Ministry of Finance will monitor state–owned
companies, akimats will control private backbone companies, while Samruk-Kazyna will
supervise the national holdings. As has been earlier reported, the draft law suggests
designating administrative accountability for increasing Kazakhstan's content in state
procurement and introducing monitoring of procurement of goods and services by
national holdings, national companies, companies with a 50% or 50%+ of state interest,
backbone companies and subsoil users," according to the comments to the draft law.
According to the document, the draft law amends the Code on Administrative Offence
"to introduce penalties for incompliance with the law on state procurement in terms of the
criteria that may affect a bidding price." The draft law also makes amendments to the law
"On subsoil use and subsoil management," that provides for a mandatory obligation to be
stipulated in subsoil use contracts to maintain Kazakh content and also for switching
subsoil users to internet-based procurement of goods and services." As reported, early in
September Kazakhstan President Nursultan Nazarbayev set an October deadline for the
government to draft and submit a law draft on increasing Kazakhstan's content in
procurement of goods and services.
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Astana. November 18. Interfax-Kazakhstan - Kazakhstan’s court system is facing a lot of
unresolved issues, Kazakh president Nursultan Nazarbayev said."A lot has been done for
the judicial power, therefore, we have the right to expect the judiciary establishment to be
a pillar of law and justice,” Kazakh president said at the fifth assembly of judges on
Wednesday in Astana. "The primary problem is the presence of dishonest judges in the
system," Nazarbayev said. "Despite the fact that the process of selecting judges is very
complicated, the judicial system still has some undeserving people in its ranks,” the
president said. "The second issue is the lack of professionalism and unethical conduct of
some judges,” he said. The third issue concerns frequent complaints of juridical errors
and red-tape during court procedures,” the president added. The president also mentioned
lapses and gaps in legislation that hinders the administration of law. The president
expressed hope that the assembly will not be a fruitless gathering, but a productive
meeting that will seriously address those issues.
Geo Strategic Front
• Kazakhstan will not allow foreign investors to take control of key banks Nazarbayev
(SRI) - Kazakhstan will not allow foreign investors to take control over key Kazakh
banks, President Nursultan Nazarbayev said in a televised question and answer session on
Friday.“We know that the presence of foreign banks in the country is beneficial. It creates
competition, allows lower rates […] but we will not allow foreign bankers to fully control
systemically important banks,” Nazarbayev said. This statement comes amid complicated
debt restructuring negotiations between some of the country’s biggest banks and their
foreign creditors. Three Kazakh lenders, BTA Bank, Alliance Bank and Astana Finance,
have gone into default earlier this year and are negotiating restructuring deals that
typically involve giving creditors shares in exchange for debt write-offs. BTA and
Alliance, which were the largest and fourth-largest bank, respectively, at the beginning of
the year, are considered systemically important banks. Samruk-Kazyna, the state holding
and investment company, which effectively took over both banks in February of this
year, said earlier it would look for strategic partners to sell its stakes in both lenders.
Russian Sberbank has long been considered a potential suitor to take over BTA, while an
unnamed UAE-based private equity fund reportedly showed interest in acquiring a
controlling state in Alliance last week. In addition, BTA creditors are seeking to get a
controlling stake in the bank after the restructuring, but the bank has so far balked on
their demands.
• CNPC to build second phase of Central Asia China gas pipeline
According to an official with the Planning and Engineering Institute of PetroChina,
CNPC the parent company of PetroChina is conducting the preparatory work to build the
second phase of the Central Asia-China natural gas pipeline from Kazakhstan Beyneu to
Shymmken. Speaking at the Asia Pipeline Summit 2009 in Beijing, the official said that
cooperation partners from China and Kazakhstan are also having talks on financing,
shares structure and other issues on the pipeline. Phase II of the natural gas pipeline will
extend 1,480 kilometers and run in the north of the Aral Sea. It will be 1,016 mm in
diameter and have a capacity of 5 to 10 billion cubic meters. The official said that one of
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the two parallel 1,792 kilometers gas pipelines from Turkmenistan to China's border port
Horgos has just come on stream in early November. The second pipeline is scheduled to
come into operation at the end of 2010. The first phase of Central Asia-China natural gas
pipeline is planned to increase its imports to China to 4.5 to 10 billion cubic meters by
2010, 17 billion cubic meters by 2011 and 30 billion cubic meters by 2012.
• Kazakhstan seeks raising funds from South-East Asia
Astana. November 19. Interfax-Kazakhstan – Within the program of advanced industrial
innovative development Kazakhstan plans to raise funds from Malaysia, Minister of
Industry and Trade said. According to the press office of the Ministry, the Kazakh
delegation led by the Vice Minister of Industry and Trade Yerkhat Iskaliyev will present
business projects at the Kazakh-Malaysian forum in Kuala-Lumpur in an attempt to raise
funds from the South-East Asia, in particular Malaysia, to fuel industrialization and
development of priority projects. Kazakhstan Development Bank and HSBC Amanah
will discuss prospects for introducing Islamic financial tools, including sukuk bonds, and
sign an agreement of cooperation. The Kazakh delegation also plans to sign cooperation
agreements with the Royal Bank of Scotland-Malaysia, hold talks with representatives of
the national financial regulators: CIMB Islamic Bank and Bursa Malaysia stock
exchange, and sign cooperation agreement with EXIM Bank of Malaysia regarding the
mutual interest in export exchange. The Kazakh delegation also hopes engage Malaysia
National holding Khazanah Nacional in joint investment projects in petrochemistry, highlevel processing of mineral resources and machine building.
• Kazakh parliament again concerned about China’s growing presence in energy
sector
Astana. November 19. Interfax-Kazakhstan – Tasbai Simambayev, a member of the
Senate (the upper chamber of the Kazakh parliament), has proposed that Kazakhstan
should not sell any more oil and gas assets to Chinese companies.“We should start
thinking about the future of Kazakhstan, about our children and grandchildren and keep a
strong grip on our strategic assets, in spite of the crisis,” he told a Thursday plenary
meeting of the Senate. “China is now controlling near 30% of the oil production and soon
there will be a gas pipeline running there too,” Mr Simambayev said. “We know that we
may close the door (terminate the contracts with – Interfax-Kazakhstan) for the European
countries, we have done it a lot of times. But nobody will let us act likewise towards our
eastern neighbors and we will not be able to return the assets we have given to them until
after a thousand years,” the senator said. This is not the first time when the Kazakh
parliament has voiced such a concern. In recent year China has been increasing it
presence in the energy projects of Kazakhstan. The Chinese companies own a number of
oil assets in Kazakhstan, including oil production, transportation and refining, and now
are actively involved in the construction of a gas pipeline in Kazakhstan. Kazakhstan
views China as a very good buyer of hydrocarbons in the future and that is why Astana is
closely cooperating with the neighbor and annually increasing the sales turnover with it.
Social Front
UST-KAMENOGORSK, Kazakhstan -- The imprisoned director of the Kazakh Bureau
for Human Rights, Yevgeny Zhovtis, has been denied access to his lawyer, RFE/RL's
Kazakh Service reports. Zhovtis's lawyer, Vitaly Voronov, was not allowed to meet
Zhovtis on November 17. Prison officials said the reason for denying access to the
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visitors is a flu quarantine. He was also reportedly not allowed to see fellow rights
activists.The denial comes one day after Zhovtis wrote an open letter with Tohniyaz
Kuchukov, a jailed journalist from the newspaper "Vremya," in which they said prison
officials were pressuring them to sign labor contracts. Zhovtis and Kuchukov were
sentenced to four years in jail in September for his role in a deadly traffic accident.
Zhovtis was transferred in October to the OV156-13 prison near the northeastern city of
Ust-Kamenogorsk -- some 900 kilometers away from his family in Almaty. Human rights
organizations say the charges against Zhovtis are politically motivated because of his
professional activity as a human rights defender.
Almaty. November 17. Interfax-Kazakhstan – The number of students from Kazakhstan
enrolled in U.S. institutions of higher education increased from 1,456 to 1,714, a 18%
increase over the 2007/08 academic year, the U.S. Embassy in Kazakhstan says in a
Tuesday press release. The embassy refers to Open Doors 2009, the annual report on
international academic mobility published by the Institute of International Education
(IIE) with support from the Bureau of Educational and Cultural Affairs of the United
States Department of State.
According to U.S. Embassy spokesperson Tom Tanner, “Whether it is through the
prestigious Bolashak scholarship program instituted by the government of Kazakhstan,
the U.S. government-sponsored Fulbright, Muskie, Humphrey, or UGRAD programs, or
through their own personal finance, Kazakhstani students who want to study abroad are
increasingly choosing the United States because of the quality and prestige associated
with an American degree.” Another contributing factor is greater access to
comprehensive and accurate information about study in the United States through
Education USA advising offices in Kazakhstan and an increased level of activity by U.S.
colleges and universities to attract students from Kazakhstan, the press release says.
“This year’s Open Doors report shows that the total number of international students at
colleges and universities in the United States increased by 8% to an all-time high of
671,616 in the 2008/09 academic year, and the total number now exceeds for the second
year in a row what had been the prior peak enrollment year (2002/03), and is 14.5%
higher than the number of international students in United States’ higher education that
year. Open Doors data show an even stronger increase in the number of “new”
international students, those enrolled for the first time at a U.S. college or university in
Fall 2008. New international student enrollments rose by 15%, following on 10%
increases in each of the previous two years,” says the release.
repent
Astana. November 17. Interfax-Kazakhstan – Kazakh President Nursultan Nazarbayev
says he is not a man to bear grudges and can forgive if asked to."I can be a forgiving
person unless it does not affect my work and my country. In general, I am not a vengeful
person. I am not a person who can bear grudges. I am ready to forgive a person who
regrets his mistakes and is willing to stand beside me,” Nursultan Nazarbayev said during
a Friday live forum. He said that many people could tell that it is a trait of his character.
"I did that many times. The case with the journalist Gabdulin, who once violated the law,
was prosecuted and lived in exile, could be a vivid example. He sent a letter through an
ambassador asking me for forgiveness. I understood and sympathized with him. He is
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now working in Kazakhstan, we meet often and I am glad that I have done that,”
Nazarbayev said. The journalist Bigeldin Gabdulin is currently an editor-in-chief of the
Central Asia Monitor newspaper. However, Nazarbayev added, "sometime it happens
when your forgiveness turns against you.” "I have guided so many young people during
those years. Though, in some cases it was a waste of time. In the 90-s they were young
graduates and I gave them a chance to grow up and gave them jobs. Some of them have
left to lead a quite life, but others … are still acting as if they have been treated unfairly
trying vehemently to prove that they are right," the president said. "If someone with a
light heart and open soul asks me for forgiveness, I am ready to listen to what a person
has to say and give him another chance, if it’s not a crime against law. Even so, I still,
have the right to grant a pardon, if the police says the person has a spirit of
reconciliation,” the president said.
Kyrgyzstan
Political Front
Kambaraly Kongantiev was appointed a new representative of the Kyrgyz Prime Minister
to the Parliament, Ulugbek Ormonov, leader of Ak Zhol fraction said at the session
Wednesday. Previously, Kongantiev took the post of the resident presidential
representative to the Kyrgyz parliament.
Geo Strategic Front
MOSCOW -- A Russian human rights activist, Bahrom Hamroev, has been deported
from Kyrgyzstan while gathering information connected with his work, RFE/RL's
Kyrgyz Service reports. Hamroev is said to have been in the southern part of the country
in an effort to collect information on alleged abuses against Muslims, who make up a
majority of Kyrgyzstan's population. He is a member of the Moscow-based Memorial
Human Rights Center, a leading rights-advocacy group that has been critical of
government abuses throughout the former Soviet Union. A Memorial representative said
a local rights activist, Izzatilla Rahmatillaev, was detained along with Hamroev. Vitaly
Ponomarev, the director of Memorial's Central Asian program, told RFE/RL that
Hamroev's mobile phone and camera were confiscated by police in Osh and he was put
on a flight back to Moscow. Rahmatillaev was later released. Islamic extremists are
frequently blamed for antistate activities in all five of Central Asia's post-Soviet
republics, none of which receive high marks from the U.S. government or international
NGOs for their rights records.
BISHKEK -- Kyrgyz opposition leader Omurbek Tekebaev says the government will use
increased payments from steep rises in utility prices to repay a $30 million World Bank
loan, RFE/RL's Kyrgyz Service reports. Tekebaev, the leader of the Ata-Meken
(Fatherland) party, told RFE/RL on November 17 that by increasing public utility fees the
government "solves two [of its] problems." Tekebaev said the government will attract
more investors to its energy companies since they will begin earning more money and
"will receive its own share [of money] for acting as the mediator." He said increased
revenue from the utility fees will be used by the cash-strapped government to repay the
World Bank loan. The government announced last week that it will introduce a three-year
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plan in January under which electricity prices will double and natural gas charges for
heating will go up by some 500 percent.
Energy tariffs’ increase is the exclusive prerogative of the country and has nothing to do
with the credit program of the World Bank, the WB office in Bishkek reported Tuesday.
The statement is connected with information of some mass media that the decision on the
tariffs’ increase has been made under pressure of the WB delegation which visited
Bishkek on October 31-November 4, 2009. The bank reported that the visit was held as a
part of regular business trips and consultations, which allow receiving first-hand
information about events in countries-participants of the WB group. The WB outlined its
readiness to support Kyrgyzstan’s further development and implementation of urgent
reforms which would help the country to derive maximum advantages from recovery of
the world economy.
Social Front
BISHKEK -- Kyrgyzstan's dominant, pro-presidential Ak-Jol (Bright Path) party has
approved a provision that would require its diplomats to understand the Kyrgyz language,
RFE/RL's Kyrgyz Service reports. The draft legislation would also order all of
Kyrgyzstan's diplomatic institutions to manage and maintain their records in the Kyrgyz
language. The provision would come into force if it is approved by the Kyrgyz
parliament -- where the Ak-Jol party has an overwhelming majority -- and signed by
President Kurmabek Bakiev. Most Kyrgyz embassies and consulates manage their
records in Russian, which has an official status in Kyrgyzstan along with the Kyrgyz
language. Most people in Kyrgyzstan speak and understand Russian, which competes
with Kyrgyz as the most-spoken language in the country even though only some 9
percent of Kyrgyzstan's population is ethnic Russian.
Human Rights Watch (HRW) is urging the government of Kyrgyzstan to release two
human rights activists who were investigating alleged rights abuses in the south of the
country. HRW says security officials detained Bakhrom Hamroev and Izzatilla
Rakhmatillaev on November 18 in Osh, in southern Kyrgyzstan. The New York-based
rights group says Hamroev, a Russian citizen, works for the Russian rights group
Memorial, while Rakhmatillaev heads Law and Order, an organization based in Osh that
investigates rights abuses in southern Kyrgyzstan.“The Kyrgyz government is out to stop
research into abuses committed against so-called extremists in the region,” says Andrea
Berg, Central Asia researcher at Human Rights Watch. "It is crystal clear that the two
men were detained in retaliation for their work." It's not the first time Kyrgyz authorities
have detained activists investigating possible human rights violations in southern
Kyrgyzstan. Hamroev's colleague at Memorial and director of its Central Asia program,
Vitaly Ponomarev, was deported from Kyrgyzstan on February 26 and declared persona
non grata. Ponomarev was deported a month after he published a 24-page report about
religious persecution and torture in Kyrgyzstan.
On the occasion of the International Day of Disabled Persons, marked on December 3,
Bishkek will host a charity campaign to support children with special needs in
Kyrgyzstan. The event is initiated by the Bishkek Parents’ Association of Disabled
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Children. The charity campaign against human indifference will take place in Bishkek on
November 29. Besides, the organizers plan to hold a city Sightseeing Tour for the
children, give gifts and serve hot meal for them.
The surveys reveal that over 50 percent of disabled children in Kyrgyzstan are locked up
in their houses. Fathers of such children often leave their families and mothers do not
have stable jobs.
Week of international education will take place in the Bishkek National children’s and
youth Library of K. Bayalinov, the Soros-Kyrgyzstan Foundation reported. The
educational events will take place in Bishkek and Kant cities and the village of
Novopokrovka on November 16-20 to tell about opportunities to study overseas. The
event organizers will also hold sessions on the U.S. education system and help choosing
and submitting documents to foreign universities. The sessions will be attended by
volunteers and participants of ACCELS, IREX and DAAD programs.
According to predictions of the World Health organization, at least 30 percent of
population will get A/H1N1 influenza over pandemic season in Kyrgyzstan, Zuridin
Nurmatov, chief of the sanitary and epidemiological control department under the Kyrgyz
Health Care Ministry told the news agency 24.kg. About 41 cases of the virus have been
registered in the republic at the time. “Number of swine flu patients who got the infection
having no contacts with comers grows from day to day. The negative tendency allows to
suppose that this type of flu is already spread among Kyrgyz population and the number
of infected will grow. As to our predictions, the highest disease incidence will fall on
December-January 2010,” Nurmatov said. Danger of A/H1N1 lies in absence of
immunity to the virus. “Seasonal flu immunization will not help and the swine flu
vaccine will be delivered to the country by the end of December. Though all the district,
regional hospitals are supplied with Tamiflu medicine, which will be handed over in case
of swine flu registration,” he added
Kyrgyzstan was ranked 162nd in Transparency International's Corruption Perception
Index (CPI) which was released Tuesday. Kyrgyzstan moved up four spots from its 2008
ranking, with a score of 1.9 out of 10. Kyrgyzstan has started its gradual falling since
2003, when it ranked 118th. In 2004 it was ranked 128, in 2005–130th, in 2006-143rd, in
2007-157th. Kyrgyzstan was ranked ahead of its direct neighbors, Uzbekistan (168),
Turkmenistan (174), but fell behind other Central Asian states like Tajikistan (158) and
Kazakhstan (120). Russia and Ukraine have shared 146th position, together with Kenya,
Cameron, Zimbabwe and Ecuador. At the top of the list stands New Zealand, with a CPI
score of 9.4, and at the bottom lies Somalia, with a score of 1.1. Rounding up the top
three are Denmark in second and Singapore, tied with Sweden in third. Down on the
bottom, Somalia was narrowly beaten out by Afghanistan and Myanmar. The United
States ranked 19th, with a score of 7.5, while other aspiring global superpowers ranked
substantially lower. China only managed to score 3.6 placing it in 79th place. The index
ranks the 180 participating countries according to the degree to which corruption is
perceived to exist among public officials and politicians. The CPI draws on 13 different
polls and surveys from 10 independent institutions, and includes surveys of business
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people and country analysts from organizations like the World Bank, the Economist
Intelligence Unit and Freedom House.
Tajikistan
Political Front
DUSHANBE -- The ruling People's Democratic Party (PDP) of Tajikistan has rejected a
proposal to reschedule the 2010 parliamentary elections, RFE/RL's Tajik Service reports.
Rahmatullo Zoirov, the leader of the Social Democratic Party, has proposed to postpone
the February elections until April. Zoirov pointed out that severe weather conditions and
an energy shortage as big obstacles for the election campaign. But Muso Asozoda, the
PDP head in Dushanbe, said that some parties are attempting to cover their
unpreparedness for the election campaign by citing other problems. Ismoil Talbakov, a
member of the Communist Party faction in the lower house of parliament, told RFE/RL
that there are no reasons to postpone the elections and his party will begin campaigning
soon. The chief of staff of Tajikistan's Central Election Committee, Muhibulloh
Dodojonov, told RFE/RL that he does not support the call for a postponement because
the agricultural season starts in April. Dodojonov refused to say if the committee plans to
discuss Zoirov's proposal. The head of Tajikistan's Islamic Renaissance Party (IRP),
Muhiddin Kabiri, told RFE/RL that he supports the postponement due to the potential bad
weather in February. Kabiri added that the IRP in 2008 proposed to hold parliamentary
elections simultaneously with the presidential election in the autumn, but the proposal
was rejected by parliament.
DUSHANBE, November 16, 2009, Asia-Plus – The ruling People's Democratic Party
(PDPT) of Tajikistan has rejected a proposal to reschedule the 2010 parliamentary
elections, Radio Liberty’s Tajik Service reported on November 14. Rahmatillo Zoirov,
the leader of the Social Democratic Party, has proposed to postpone the February
elections until April. Zoirov pointed out that severe weather conditions and an energy
shortage as big obstacles for the election campaign. But Muso Asozoda, the PDP head in
Dushanbe, said that some parties are attempting to cover their unpreparedness for the
election campaign by citing other problems. Ismoil Talbakov, a member of the
Communist Party faction in the lower house of parliament, told RFE/RL that there are no
reasons to postpone the elections and his party will begin campaigning soon. The chief of
staff of Tajikistan's Central Commission for Elections and Referenda (CCER),
Muhibulloh Dodojonov, told RFE/RL that he does not support the call for a
postponement because the agricultural season starts in April. Dodojonov refused to say if
the committee plans to discuss Zoirov's proposal. The head of Tajikistan's Islamic
Renaissance Party (IRP), Muhiddin Kabiri, told RFE/RL that he supports the
postponement due to the potential bad weather in February. Kabiri added that the IRP in
2008 proposed to hold parliamentary elections simultaneously with the presidential
election in the autumn, but the proposal was rejected by parliament
KHOROG, November 17, 2009, Asia-Plus -- Our party does not prepare any surprise for
the upcoming parliamentary elections and our election strategy is absolutely clear – to
enter parliament, Rahmatillo Zoirov, the leader of the Social-Democratic Party (SDPT),
told reporters in Khorog, the capital of Gorno Badakhshan on November 14. On the
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appeal over the upcoming parliamentary elections made by the SDPT board to the
President, Parliament, Central Commission for Elections and Referenda (CCER),
political parties and voters on November 7, Zoirov said that the SDPT’s proposals would
promote holding of democratic and free elections in Tajikistan. Asked about the reason
for rescheduling the 2010 parliamentary elections, Mr. Zoirov said that they proposed to
postpone the February elections until mid-April due to potential bad weather and severe
energy shortages in February that are serious obstacles for the election campaign. “In the
future, we propose to hold parliamentary elections in the autumn, on November 6,” the
SDPT leader noted. Asked about practicability of proposals made by the SDPT board,
Mr. Zoirov noted that there was still enough time until announcement of the elections and
all those proposals were practicable.
DUSHANBE, November 19, 2009, Asia-Plus -- Members of Tajikistan’s upper house
(Majlisi Milli) of parliament have unanimously seconded a new national criminal
procedure code. The 22nd session of the Majlisi Milli of the third convocation, presided
over by its speaker, Mahmadsaid Ubaidulloyev, was held on November 19. Presenting
the law on introduction of the new criminal Procedure Code, the Majlisi Milli member
Mehmon Bakhti noted that the code that was currently in effect was outdated. It was
passed in 1961 already and amended in 2005. The new national criminal procedure code
was passed by the Majlisi Namoyandagon (Tajikistan’s lower chamber of parliament) on
November 14 this year.“A group that included members of the government, parliament
and law enforcement authorities worked on the bill, providing for increasing role of
courts in protection of constitutional rights of citizens, for two years,” Bakhti said.
Appealing to members of the Majlisi Milli, he noted that international human rights
conventions ratified by Tajikistan and the country’s constitution obliged us to adopt that
law. The new Criminal Procedure Code gives the courts broader powers. Under the code,
the courts are responsible for issuing arrest warrants, search warrants, authorizing the
seizure of assets and bank accounts and wiretapping. The prosecutor general currently
performs these functions, which has been criticized by experts. Experts say courts, rather
than prosecutors, issue arrest warrants elsewhere in the modern world. The new code is
expected to come into effect on April 1, 2010.
DUSHANBE, November 19, 2009, Asia-Plus -- President Emomali Rahmon introduced
a number of staff changes on November 18. According to presidential press service,
Dodikhudo Saymuddinov, formerly deputy of the Majlisi Namoyandagon (Tajikistan’s
lower chamber of parliament), was appointed to head the Committee on Language and
Terminology under the Government of Tajikistan. Abdumannon Kholiqov, who had
previously been deputy of the Majlisi Namoyandagon (Tajikistan’s lower chamber of
parliament), and Shahnoza Nodirova were appointed Deputy Ministers of Justice.
Gulchehra Bozorova, formerly deputy of the Majlisi Namoyandagon (Tajikistan’s lower
chamber of parliament), and Saidrahmon Nazriyev, formerly presidential aide, were
appointed Deputy Ministers of Economic Development and Trade. Abdulaziz Sharipov,
who had previously been presidential adviser, was made Deputy Director of the Trade
Department at the Integration Committee of the Eurasian Economic Community (EAEC).
Haidar Sayfiyev, formerly presidential adviser, was appointed director of the Institute of
Metallurgy at the Tajik Aluminum Company (TALCO).
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Geo Strategic Front
DUSHANBE, November 17, 2009, Asia-Plus -- Military experts from member nations
of the Shanghai Cooperation Organization today gathered in Almaty, Kazakhstan for the
third round of staff negotiations on preparations for a joint military drill, dubbed, Peace
Mission-2010. According to the Tajik Ministry of Defense (MoD), Major-General Z.T.
Bobokalonov, the first deputy head of the MoD General Staff, is representing Tajikistan
at the negotiations in Almaty. Kazakhstan’s news agency Kazakhstan Today reports that
the negotiations participants today flew to the Otar training ground, where the Peace
Mission-2010 military drill will be conducted in September 2010. The Peace Mission2010 drills is expected to involve some 10,000 military personnel from all member
nations of the Organization. In the meantime, some experts note that the drill will focus
on exercises combating “Eastern Turkestan” militants. Eurasia Lift quoted Russian
expert Vladimir Mukhin as saying that the separatism issue that emerged in Xinjiang also
exists in Kazakhstan to some extent. The Kazakh government has cracked down on
several separatist organizations set up by “Eastern Turkestan” activists. Some “Eastern
Turkestan” armed terrorists have also appeared in Chechnya, Afghanistan and other
Central Asian nations. Therefore, it is not hard to understand why the “Peace Mission2010” military drill, in which all SCO members will participate, is to be held at the Otar
training ground near the Kazakh-China border. The Shanghai Cooperation Organization
(SCO) is an intergovernmental international organization founded in Shanghai on June
15, 2001 by six countries: China, Russia, Kazakhstan, Kyrgyzstan, Tajikistan and
Uzbekistan. Its member states cover an area of over 30 million square kilometers, or
about three fifths of Eurasia, with a population of 1.455 billion, about a quarter of the
world's total.
DUSHANBE, November 18, 2009, Asia-Plus -- Tajik delegation, led by Foreign
Minister Hamrokhon Zarifi, will attend Hamid Karzai inauguration that will take place in
Kabul on November 19. According to the MFA information department, the Tajik
delegation will fly to Kabul tomorrow morning. Afghan President Hamid Karzai will be
inaugurated for his second five-year term in office. According to international media, the
ceremony for Karzai will take place at a heavily guarded palace compound in the capital
Kabul. Hamid Karzai was recently declared the winner of Afghanistan's presidential
election after his competitor in a scheduled run-off vote — former foreign minister
Abdullah Abdullah — dropped out with just days to go. The run-off was scheduled to be
held this month after the first round of voting was marred by widespread fraud, but
Abdullah dropped out because he said the run-off could not be conducted freely or fairly
until changes were made to the election commission.
DUSHANBE, November 16, 2009, Asia-Plus -- On Saturday November 14, President
Emomali Rahmon signed the RT Law “On the National Budget of the Republic of
Tajikistan for 2010,” according to presidential press service. Compared to the budget for
this year, the national budget for 2010 is increased by 748.5 million somoni. The budget
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projects expenditure of 3.137 billion somoni on the social sphere, which is 27 percent
more than in 2009.
The Majlisi Namoyandagon (Tajikistan’s lower chamber of parliament) passed the
national budget for 2010 on November 11 this year.
Social Front
official says
DUSHANBE, November 14, 2009, Asia-Plus -- 70 percent of Tajikistan’s water supply
infrastructure has become obsolete and requires serious repairs, the First Deputy Prime
Minister Asadullo Ghulomov remarked at a ceremony of presentation of the Water
Supply and Sanitation in Tajikistan Project of the Swiss Agency for Development and
Cooperation (SDC) in Dushanbe. According to him, such a situation causes large
drinking water losses and to solve this problem it is necessary to introduce new
technologies and replaces old water pipes with the new ones as soon as possible. “All
this requires large funds, but Tajikistan is now unable to do this on its own,” Ghulomov
said. Besides, tariffs set in Tajikistan do not meet operating costs and local waterworks
incur losses. To add to the problems facing water supply infrastructure, water users do
not pay for water consumption in proper time, he added. “Subsidies provided by the
government are not enough to cover all expenses,” Tajik official said. One of the goals of
the new Poverty Reduction Strategy for Tajikistan is to improve access to drinking water
in the whole country. Some 75 percent of Tajikistan’s population lives in rural areas and
only 52 percent of the rural population now has access to safe drinking water; meanwhile,
only 3 percent of the rural population has access to adequate sanitation.
DUSHANBE, November 17, 2009, Asia-Plus -- According to Tajik Minister of
Education Abdjabbor Rahmonov, one of the most important problems facing the
country’s education sector -- shortage of teachers -- has been practically solved. “In
Dushanbe, the teacher shortage problem has been solved completely,” said the minister,
“However, there are inconsiderable teachers shortages in the provinces. Thus, the Sughd
province now has 22 teaching vacancies; mainly in the Kuhistoni Mastchoh district. We
will try to solve this problem through enlisting the services of young teachers from
Khujand and Konibodom.”Among the districts subordinate to the center only the
Tojikobod district (eastern Tajikistan) now has five teaching vacancies, according to
Rahmonov. The most serious teacher shortage problem is now in the southern Khatlon
province, which now has 89 teaching vacancies. In Khatlon, the teacher shortage
problem will be solved due to young specialists who has graduated from Qurghon Teppa
and Kulob universities this year, the minister said. Gorno Badakhshan currently has only
9 teaching vacancies – 4 in the Vanj district and 5 in the Darvoz district. Meanwhile, 200
young specialists having graduated from Khorog State University this year are still
unemployed. In all, Tajikistan now has 125 teaching vacancies, while last year, the
country had 1,141 teaching vacancies, the minister noted.
Turkmenistan
Political Front
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President Gurbanguly Berdimuhamedov signed a resolution severely reprimanding
Minister of Internal Affairs of Turkmenistan Isgender Mulikov. In accordance with the
document, the text of which was published in today's press, the penalty was imposed on
the Interior Minister "for weakening of discipline and order among the personnel of
internal affairs bodies, low level of organization of political work, as well as for
providing incomplete information about crimes." Isgender Mulikov was warned of the
potential dismissal "if he fails to promptly correct shortcomings."
Geo Strategic Front
On instructions of President of Turkmenistan Gurbanguly Berdimuhamedov, Vice
Premier, Minister of Foreign Affairs of Turkmenistan Rashid Meredov will visit the city
of Kabul to participate in the inauguration of the newly elected President of the Islamic
Republic of Afghanistan on 19 November, the Turkmenistan.ru correspondent reports
quoting the press service of the Turkmen Foreign Ministry. According to another
instruction of the Turkmen leader, Rashid Meredov will attend a regular meeting of the
Council of CIS Heads of Government in Yalta (Ukraine) on November 20.
On instructions of President of Turkmenistan Gurbanguly Berdimuhamedov, the
delegation of deputies of the Mejlis of Turkmenistan led by the speaker of the Mejlis of
Turkmenistan, Akja Nurberdiyeva, will visit the Islamic Republic of Iran (Teheran). As
the correspondent of Turkmenistan.ru reports referring to the Mejlis, the visit aims to
further develop inter-parliamentary cooperation between the two countries. The visit will
take place from 21 to 22 November.
A draft state budget for 2010 was reviewed at a regular meeting of the Government of
Turkmenistan. According to the Turkmen TV, the 2010 budget planners were guided by
the successful outcome of the socio-economic development of Turkmenistan to be
achieved on the results of 2009. Speaking at the meeting, the President noted that based
on these indicators budget revenues in 2010 would be around 48.3 billion manat.
According to him, Turkmenistan will report a small budget deficit in 2010 that will be
offset by the Stabilization Fund. In 2010, investments in the social sphere will increase by
25,7 per cent compared to the current year. Wages, pensions, allowances and student
stipends will increase by 11 per cent on average. Health spending will rise by 11.7 per
cent, spending on development of education - by 10,5 per cent, spending on the cultural
sphere - by 36.5 per cent. Spending on the development of the armed forces, financing of
law enforcement agencies, ensuring national security will increase by 3 per cent. Funds
allocated for the construction sphere will increase by 54,6 per cent year-on-year. Next
year, about 12.8 billion U.S. dollars will be invested in Turkmenistan's economic sector
at the expense of all sources of funding, the president said. Of this amount, 29.3 per cent
will be received from foreign enterprises owing to the favorable investment climate
created in the country. Gurbanguly Berdimuhamedov emphasized that thanks to the
policy of diversification of the national economy the next year's budget will not depend
on revenues from the fuel-energy sector. "While preparing the budget for 2010, we took
into account the possibility of reducing next year's sales of natural gas and lowering the
price for natural gas and petroleum products," he said. According to the Turkmen leader,
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execution of the budget will significantly improve the standard of living of people, and
will contribute to the further economic growth in Turkmenistan. The draft state budget
for 2010 was submitted to the Mejlis of Turkmenistan. The Mejlis will consider the
document at the end of this week.
The agriculture ministers of the CIS countries will meet in Ashgabat to discuss ways of
development of the agro-industrial complex in the post-crisis period, ITAR-TASS
reported referring to the Director of the Department of Economic Cooperation of the CIS
Executive Committee, Andrei Kushnirenko. The ministerial meeting will take place as
part of the 1st Forum of agricultural producers of the CIS countries to be held in the
Turkmen capital on November 25-27. According to Andrei Kushnirenko, the ministers
will discuss ways to overcome the effects of the global financial crisis in the agrarian
sector of the CIS countries, problems of competitiveness and food security in the agroindustrial complex, support to small business, financial stability and investment in
agribusiness in the CIS countries.
"We are confident that the forum will offer dozens of innovative solutions for qualitative
development of the agro-industrial complex of the CIS countries," the representative of
the CIS Executive Committee said. The forum will also host an exhibition of agroindustrial products, agricultural machinery and advanced technology of the CIS countries,
Iran, China and Turkey, the scientific conference "Problems of sustainable development
of agricultural sector of the CIS countries under current conditions", the extended
meeting of the Intergovernmental Panel on topical issues of the agro-industrial complex
of the CIS, and a number of business meetings.
The 14th International Exhibition "Oil and Gas of Turkmenistan-2009" kicked off at the
Main Exhibition Palace of Ashgabat today. It was organized by the Chamber of
Commerce and Industry and the Ministry of Oil and Mineral Resources of Turkmenistan.
More than 160 companies from 28 countries including the United States, European Union
and the CIS, as well as China, Japan, Turkey and other countries participate in the
exhibition, the Turkmenistan.ru correspondent reports from Ashgabat. A special seminar
on various aspects of legislation and taxation in the oil and gas business in Turkmenistan
will be held at "President" hotel in parallel with the exhibition. According to the
organizers, this seminar will be a kind of prologue to the 14th International Scientific
Conference "Development of the Oil and Gas Industry of Turkmenistan and International
Cooperation in the Era of New Renaissance," which opens at the Exhibition Palace on
November 18. This year's forum, which is co-organized by the Ministry of Petroleum and
Mineral Resources of Turkmenistan, the State Agency for Management and Use of
Hydrocarbon Resources under the President of Turkmenistan and the British company
"Summit Trade Events Ltd.", will bring together over 400 participants. More than 160
different oil and gas companies and organizations from over 40 countries arrived in
Ashgabat. High-profile delegations of the UN, the European Commission, as well as a
number of major industrial states will also participate in the conference. President of
Turkmenistan Gurbanguly Berdimuhamedov sent a welcome message to participants and
guests of the exhibition and conference. He expressed confidence that the forum will
offer solutions to enhance international cooperation on the extraction of mineral
265
resources of Turkmenistan, enhancing prospecting works, increasing volumes of oil and
gas processing, and further development of the pipeline system.
The 14th International Exhibition "Oil and Gas of Turkmenistan-2009" and the
international scientific-practical conference that brought together over 400 foreign
participants wrapped up in Ashgabat, the Turkmenistan.ru correspondent reports. The
forum was attended by over 200 world-renowned oil and gas and service companies
including Petronas, Dragon Oil, CNPC, Gazprom, Lukoil, Wintershall , Komatsu LTD,
RWE AG, OMV, British Petroleum, Chevron, Total and others, as well as governmental
and international organizations from 35 countries, including Germany, Austria, Great
Britain, United States, Russia, Kazakhstan, Ukraine, Japan, Turkey, Iran, China, India,
UAE. The scientific-practical conference discussed issues related to development of
international cooperation, attracting foreign investments and introducing high
technologies in exploration and development of fields, in the processing sector, in
implementation of new infrastructure projects in the fuel and energy complex of
Turkmenistan. Representatives of the U.S. State Department, the European Commission's
Directorate General for Energy and Transport, the International Energy Agency, the
Ministries of Energy of Russia and Kazakhstan, the British Foreign and Commonwealth
Office, the International Gas Union, USAID, as well as heads and leading specialists of
foreign companies spoke at the conference.
Social Front
Heritage List
The National Commission of Turkmenistan for UNESCO has conducted training
seminars for staff of the State Nature Reserve "Badkhyz," the State Historical and
Cultural Reserve "Ancient Merv" and all other historical and cultural reserves of the
country. Representatives of UNESCO headquarters based in Paris attended the seminars
that aimed at preparing the monuments of nature and history of Turkmenistan for
nomination to the World Heritage List. As the State News Agency of Turkmenistan
(TDH) said, the seminar participants got acquainted with specific terms and conditions of
nominating natural monuments for consideration by the UNESCO World Heritage
Committee. They also discussed issues related to protection, management and
identification of universal global values of natural monuments of Turkmenistan. The
seminars also considered projects on preparing the natural monument "Badkhyz and the
archaeological complex "Gonur Depe" for nomination to the World Heritage List.
According to the official report, awarding Gonur Depe high international status will
contribute to the fuller development of scientific and social potential of this historic sight,
and one of the purposes of nominating Badkhyz for inclusion in the UNESCO List is to
study and preserve the rich flora and fauna of the reserve.
Uzbekistan
Political Front
KARSHI, Uzbekistan -- Some 30 women have been arrested in the southern Uzbek city
of Karshi since the beginning of November, RFE/RL's Uzbek Service reports. Mehriniso
Hamdamova, 40, a teacher of a religious course for women at Karshi's Kuk Gumbaz
266
Mosque, is the latest woman to have been arrested. Hamdamova's daughter, Latofat
Orzikulova, told RFE/RL that in the early morning of November 5 a dozen police and
security officers entered Hamdamova's home and searched it.She said that although they
found nothing illegal they confiscated two Uzbek films on CDs and a book given to
Hamdamova as a gift by the Spiritual Administration of Muslims in Uzbekistan.
Hamdamova is being held in pretrial detention after being charged with establishing
"jamoats" (societies) and promoting them among young people. Orzikulova said that on
the same day several of Hamdamova's female relatives -- including her sister, a daughterin-law, and nieces -- were also arrested. Orzikulova said police refused to say why her
relatives were arrested. The detentions are the latest in a string of arrests of women in
Karshi. Shoira Karomova, who works at a state department on religious affairs dealing
with women and who helped develop the religious course taught by Hamdamova, told
RFE/RL that she does not think Hamdamova's professional activities were the reason for
her arrest, because her course had been officially approved. Surat Ikromov, a leader of
the Independent Group for Human Rights Defenders, told RFE/RL that the arrested
women have been pressured while in detention in Karshi to give evidence against
Hamdamova. Hamdamova's relatives have appealed for help in the case to President
Islam Karimov, the prosecutor-general, the head of the state security service, and the
Spiritual Administration of Muslims in Uzbekistan.
Eler Ganiev, the Minister for foreign economic relations, investment and trade in
Uzbekistan, is appointed as the deputy Prime-Minister of the republic. Therefore,
according to web-site of Uzbek government, he took over 7th vacant spot in the list of
deputies of Prime-Minister. Meanwhile, Ganiev kept his position as the minister while as
deputy Prime-Minister he will be responsible for economic relations. He had the deputy
Prime-Minister experience earlier (since 2002) and also headed the Agency for foreign
economic relations of Uzbekistan. In 2005 he was appointed as Foreign Affairs Minister.
Since July of 2006 Mr. Ganiev has been holding the position of the Minister for foreign
economic relations, investment and trade in Uzbekistan. Eler Ganiev is originally from
the Syr Daria Oblast of Uzbekistan. In 1981 he graduated from oil and gas department of
Tashkent polytechnic institute, majoring in engineering and geology. After military
service he became senior adviser under the State Committee for foreign economic and
trade relations in Uzbekistan. Later on he headed the department in the Ministry for
foreign economic relations, the Institute of strategic and interregional research under the
President. In 1994-2002 he worked as deputy Minister, first deputy Minister, Minister of
foreign economic relations. Besides, Mr. Ganiev is the President of volleyball federation
of Uzbekistan. He is married and has three children.
Geo Strategic Front
ALMATY -- The Shanghai Cooperation Organization (SCO) has begun a third round of
discussions in Almaty about upcoming counterterrorism exercises, RFE/RL's Kazakh
Service reports. Representatives from SCO members Kazakhstan, Kyrgyzstan, Russia,
Tajikistan, and China also visited the Otar training grounds in southeastern Kazakhstan,
where the maneuvers involving some 10,000 troops are to be held next year. Delegations
from all SCO members except Uzbekistan are attending the meetings. The Uzbek
government has recently limited its involvement in the Eurasian security organization, in
267
which Russia and China are the dominant partners. In September, the Uzbek parliament
adopted legislation on its cooperation with the SCO that limits it to sending observers to
the counterterrorism maneuvers after members of the upper house of parliament noted
that Uzbek law forbids sending troops abroad. The SCO was founded as the Shanghai
Five in 1996 and changed its name in 2001 after Uzbekistan joined as a member.
US Deputy Assistant Secretary for South and Central Asian Affairs, George Krol, is in
Uzbekistan for a series of high-level meetings."He is here for a couple days and will have
meetings with government and non-governmental people. The purpose is to start a
process of dialogue," a representative of the US embassy in Tashkent told EurasiaNet on
November 18. Observers believe Krol will focus on regional security issues and militarytechnical cooperation during his talks with Uzbek officials. Krol’s visit to Tashkent
follows on a two-day trip to Turkmenistan earlier this week.
Since the beginning of November at least 30 Muslim women have been arrested in the
city of Karshi in the Kashkadaria Oblast of Uzbekistan. The Initiative Group of
Independent Human Rights Activists of Uzbekistan (IGIHRAU) reports that the reason of
detention is not shared even with close relatives. According to Latofat Orzikulova, the
dozen of policemen and National Security officers entered the house of her mother on
November 5 and conducted a search. Finding nothing suspicious, they took two DVDs
and book, presented by clerical administration of Uzbekistan. Besides, the officers
detained the mother on suspicion of "organization of jamoat (communities), attraction of
youth and increase the number of jamoat members".IGIHRAU says that Mehriniso
Hamdamova graduated from religious school, named after Khodja Bukhoriy in the city of
Kitab in 2006 while in 2007 she took special courses on Islamic studies. Later on she was
appointed to Kuk Gumbaz Karshi mosque to work with women and youth thanks to the
recommendations from the Chairman of Islamic administration of Uzbekistan, mufti
Usmokhan Alimov and Ms. Karomova, responsible worker for the work with women in
the Kashkadaria Oblast. Moreover, Mehriniso Hamdamova solved the problems in
mahallah (local communities). Ms. Hamdamova is characterized as responsible worker
and it is unclear what the local authorities suspected in her activity. The human rights
activists note that the houses of Hamdamova’s parents and relatives also went through
unsanctioned search. On November 5 sister Zulhumor, nieces Nigora Nosirova, Nodira
Burieva, Rahima Burieva, daughter-in-law Hikoyat Imomova, Bahtishod Huzhaeva and
Yulduz Tuhtaeva and others were arrested. Thus, at least 30 women were placed to
detention center in Karshi. They are exposed to physiological torture and threats.
National security officers want them to write statements against Mehriniso Hamdamova.
Close relatives of detained women already wrote appropriate letters to Uzbek President
Islam Karimov, Prosecutor General, Head of National Security Committee, Chairman of
Clerical Administration, Head of Women’s committee and subordinate structures in the
Kashkadaria Oblast. No response has followed yet.
Social Front
268
Mekhrinisso Hamdamova, a Muslim holding a state appointment, has been arrested for
holding unauthorised religious meetings in her home, Forum 18 News Service has
learned. She faces very serious charges, the authorities claiming that she was attempting
to overthrow the President and the "constitutional order", and inciting religious hatred.
Over 30 of her family and others have been arrested, human rights defender Surat
Ikramov told Forum 18. The official overseeing religious issues in Hamdamova's city
told Forum 18 "probably she did something unlawful so she was arrested." 11 Protestants
have been fined because they were together for a meal in a friend's house, the fines
ranging between 50 and 10 times the minimum monthly wage. Similarly 17 Protestants
have been fined for possessing "illegal" religious literature. The judge in the latter case,
asked why he ordered a copy of the New Testament in Uzbek and other literature to be
destroyed, angrily told Forum 18 that "it was all kept illegally." Finally an appeal
following the conviction of Baptists for running a children's holiday camp is due on 4
December. A mysterious "burglary" of a relative of one of the Baptists has also taken
place.
Reuters and AlertNet are not responsible for the content of this article or for any external
internet sites. The views expressed are the author's alone. Uzbek authorities should
immediately release the human rights defender and farmers' rights activist Ganikhon
Mamatkhanov, who is facing trial on politically motivated charges, Human Rights Watch
said today. Mamatkhanov has regularly provided commentary on the human rights
situation in Ferghana, in eastern Uzbekistan, to Radio Ozodlik, the Uzbek branch of
Radio Free Europe/Radio Liberty (RFE/RL). Local human rights defenders believe that
Mamatkhanovâ€™s arrest is in retaliation for his human rights work and public criticism
of the government. Mamatkhanov faces charges of fraud and bribery. He was detained on
October 9, 2009, under circumstances that appeared to have been staged to frame him.
Mamatkhanov joined the human rights movement in Uzbekistan around 1996 as a
member of the Independent Human Rights Society of Uzbekistan. About four years ago,
he joined the Committee for the Protection of Individual Rights. He works for social and
economic rights, including the rights of farmers, a number of whom were the victims of
unlawful land confiscation earlier this year. On October 9, an unidentified man called
Mamatkhanov, asking him to meet near the Ferghana City market. Abdusalom Ergashev,
another human rights advocate who spoke to Mamatkhanov by phone that day, said that
when the two men met shortly after the call, the man demanded that Mamatkhanov open
his bag. When Mamatkhanov asked why, the man reportedly started to hit him and
shoved something into his bag. Mamatkhanov tried to stop him and, realizing that it was
a set-up, tried to throw the item away. However, he was immediately detained by the
police who confiscated the item, subsequently found to be 500,000 Uzbek som (about US
$330). The man who planted the money on Mamatkhanov was later identified in the
indictment as Ruzimat Usmanov, a farmer. Mamatkhanov reported that he had never seen
Usmanov before. According to information provided to Human Rights Watch, several
days before Mamatkhanov was detained, Usmanov alleged that Mamatkhanov had
demanded 6 million som (about US $3,990) from him to help him regain ownership of
his farm. Another farmer, Tahir Sulemanov, alleged that Mamatkhanov had demanded
4.5 million som (about US $2,990) from him. When Mamatkhanov was brought to the
prosecutor office for further questioning on October 24, he told his younger son
269
Jamoliddin that he had suffered two heart attacks while in detention. Mamatkhanov asked
his son to relay this information to Ergashev. Ergashev submitted a formal request to the
investigator asking that Mamatkhanov receive special care, which he was told would be
provided. However, Mamatkhano family remains concerned for his health. Mamatkhanov
has been targeted before because of his human rights work. He has frequently criticized
the police and the local authorities as part of his work. According to information received
by Human Rights Watch, roughly two months ago the head of the Ferghana City Police,
Azamhodja Umurzakov, openly threatened Mamatkhanov in front of the governor
(Hokkim) and prosecutor of Ferghana City, saying that he had worked in several
œdifficult districts of the Ferghana region and knows insurgents whose help he could
easily solicit to cause Mamatkhanov to disappear. When Mamatkhanov learned of
Umurzakov threat, he reportedly sent a written complaint to the Regional Prosecutor
Office. In response, he reportedly received a letter saying his allegations could not be
confirmed and that the investigation was closed. However, a reliable source told Human
Rights Watch that at least one witness came forward during the investigation to confirm
that Umurzakov had made such a statement.
BUSINESS AND POLITICS IN THE MUSLIM WORLD
GULF COOPERATION COUNCIL
NEWS MONITORING REPORT
MADIHA KAUKAB
14th Nov – 20th Nov
PRESENTATION DATE: 25th NOV 2009
Following news monitoring report is based on the important political, social, economic
and Geo-strategic events occurred in Gulf Cooperation Council States along with a short
summary of the report.
OUTLINE
SUMMARY………………………………………………………………………….04
GCC………………………………………………………………………………….04
GCC praises Qatar's call on Arabs to unify their stance
Gulf countries urged to step up drive against piracy: Pieter Bindt
Swiss Army Chief of Staff keen on relations with GCC
GCC justice ministers approve Muscat Document
Forced labour' a huge problem in the Gulf region
GCC condemns Israel's illegal settlement activities
270
'GCC summit in Kuwait will be launch pad for unified Gulf currency'
SAUDI
ARABIA…………………………………………………………………………..07
International Front
Riyadh urges UN to end double standard
Renowned Islamic scholars to attend MWL conference
King to host 2,000 Palestinian pilgrims
New Israeli move major obstacle
Kingdom, US sign pact
SARKOZY (FRANCE) VISIT TO KINGDOM
Abdullah, Sarkozy discuss Mideast
Kingdom and France call for resumption of Mideast talks
SAUDI-YEMEN BORDER ISSUE
Kingdom can beat off intruders
Yemeni infiltrators to be tried
Kingdom in full control of border
Social Font
KAU to get Kingdom’s 2nd nuclear-research facility
SR20 billion plan to build 3,200 schools
Community services to be privatized
New kiswa handed to guardian
Hajj/Swine Flu
Local pilgrims avoiding Haj due to H1N1
70% drop in local pilgrims
20 swine flu cases reported among pilgrims
Economic Front
Govt employees to receive 15 percent inflation allowance
UAE………………………………………………………………………………..14
International Front
UAE takes part in international efforts to ensure safety of UN staff in Afghanistan
271
UAE establishes diplomatic relations with East Timor
UAE, Pakistan discuss military cooperation
Khalifa stresses boosting of the relations between UAE and Ukraine
Nuclear Energy Front
Nuclear deal becomes reality: UAE minister
Social Front
FNC discuss foreign labour and occupation of islands
UAE, South Korea discuss military cooperation
Economic Front
Dreams still come true in UAE: Mohammed
KUWAIT………………………………………………………………………………..17
International Front
Iran's presidential advisor welcomes Kuwaiti PM's visit
Kuwaiti PM's visit to Iran to develop ties – ambassador
Political Front
Kuwaiti MP to present PM grilling motion by Tuesday
Kuwaiti MPs seek to question two ministers
Kuwaiti MP files to quiz defence minister
Govt to face grilling with constitutional tools: Kuwaiti minister
BAHRAIN………………………………………………………………………………..1
9
International Front
Kuwaiti-Bahraini committee stresses importance of developing relations
Social Front
A mission to help Bahrain's needy
Call to protect workers' rights
Swine Flu
New wave of flu is feared in Bahrain
272
QATAR………………………………………………………………………………..21
International Front
Negotiations key to end Darfur conflict: Qatari PM
Qatar Emir, Italian PM hold talks
Qatar urges world to act on Israel
Social Front
Diabetes cases on the rise in Qatar: Official
OMAN ………………………………………………………………………………..23
International Front
Oman, France explore ways to boost ties
Oman signs MoU with European Union, WHO
Social Front
UN report values Oman's development efforts
SUMMARY
Swiss Armed Forces Chief of Staff Lieutenant General Andre Blattmann
underlined here on Sunday the keenness for establishing good relations with the member
countries of the Arab Gulf Cooperation Council (GCC) as part of the mutual exchange of
expertise between the Swiss army and world countries. In a KUNA interview, Blattmann
welcomed the exchange of expertise with GCC states and consultations over issues of
common interest, noting that he was familiar with the defensive systems present in the
Gulf region.
GCC Secretary General Abdul Rahman Al-Attiyah on Wednesday condemned
Israel's decision of building 900 settlements in Jerusalem. A statement released by AlAttiyah said such irresponsible practices by Israel are a flagrant violation of international
laws, a blatant challenge to international efforts to revive the peace process in the Middle
East, particularly with regard of establishment of a Palestinian state with its capital in
Jerusalem. Al-Attiyah warned of the danger of the continued settlement policy in
Jerusalem, and other occupied Palestinian territories, noting that the new Israeli steps
regarding the settlements reflect beyond any doubt the approach of hegemony and
arrogance, a policy that undermines chances of achieving comprehensive and just peace
and leads to more frustration and further regional instability.
The upcoming GCC summit in Kuwait will be the launch pad for the unified Gulf
currency, Deputy Premier and Foreign Minister Sheikh Dr. Mohammad Sabah Al-Salem
Al-Sabah said Wednesday. Hoping for the United Arab Emirates (UAE) and the
273
Sultanate of Oman to get onboard, Sheikh Dr. Mohammad, in a press conference he
jointly held with his visiting Bahraini counterpart Sheikh Khaled Bin Ahmad Al-Khalifa,
said "the train moved and on its way for accrediting the currency in 2010."
DETAILED REPORT
GCC
GCC praises Qatar's call on Arabs to unify their stance
Secretary General of the Gulf Cooperation Council (GCC) Abdelrahman Al-Attiya
praised on Saturday the state of Qatar for its call on drawing out a unified Arab stance
vis-a-vis Arab causes and the Arab peace initiative.
In a statement circulated here, the secretary general of the Riyadh-based six member
council said the call by Qatari Prime Minister and Foreign Minister Sheikh Hamad bin
Jassim Al Thani, who presided over a meeting of the Arab committee in charge of the
Arab peace initiative in Cairo recently, has drew a road map for the Arabs to pursue visa-vis the initiative and how to deal with the Israeli negligence of peace. World countries
should bear the responsibility regarding Israel's ignorance and the stalemate in the middle
east peace process, Attiya said. Al Thani has stressed the importance that Palestinians
resolved their differences and that the reconstruction of Gaza strip became a priority,
Attiya pointed out. This an uncontested stance by Qatar, current chairman of the Arab
summit, he said, adding that the statement that was issued by the Arab ministerial
committee of Cairo, was in harmony with the stance adopted by member states of the
GCC.
Gulf countries urged to step up drive against piracy: Pieter Bindt
This is high time the Gulf countries should step up drive against piracy, said Commodore
Pieter Bindt, Force Commander of the European Naval Force Somalia (EU NAVFOR),
while briefing journalists onboard HMNLS Evertsen, a Dutch warship that called on port
of Muscat on Thursday. Commodore Pieter is commanding the EU Task Force
Operations in the Somalian basin and Gulf of Aden. He also hoped the setting up of a Pan
Arab task force against piracy in near future. “This is very important today as the pirates
are not only plundering the merchant ships, they are also targeting vessels of the World
Food Programme (WFP) delivering Food aid to displaced persons in Somalia,” he said.
Pieter gave a presentation in which he explained that the piracy threatens the prompt and
safe delivery of food aid to 3.7 million Somalians depending on food aid and threatens
international maritime trade routes comprising 80 per cent of world and 95 per cent of
EU trades.
Swiss Army Chief of Staff keen on relations with GCC
Swiss Armed Forces Chief of Staff Lieutenant General Andre Blattmann underlined here
on Sunday the keenness for establishing good relations with the member countries of the
Arab Gulf Cooperation Council (GCC) as part of the mutual exchange of expertise
between the Swiss army and world countries. In a KUNA interview, Blattmann
welcomed the exchange of expertise with GCC states and consultations over issues of
common interest, noting that he was familiar with the defensive systems present in the
274
Gulf region. He said the Swiss army was pragmatically linked with the North Atlantic
Treaty Organization within the Partnership for Peace Program, and provides
consultations for NATO member countries, particularly neighbouring states, over means
to promote democracy within the armed forces and develope its capabilities. Cooperation
with NATO does not bypass this framework, he said, noting that Switzerland as a nonmember does not intervene in the NATO military operations. He stressed neutrality of
Switzerland and objection to others' intervention in his country's internal affairs.
GCC justice ministers approve Muscat Document
GCC Justice Ministers have approved Muscat Document as a unified, guiding law for a
period of four years. The ministers, who held their 21st meeting at Al Bustan Palace
Hotel here yesterday, also studied the progress of experts work on drafting the Doha
Document on improving joint judicial action. The meeting was chaired by Shaikh
Mohammed bin Abdullah al Hinai, Minister of Justice. The meeting also touched on
other aspects of enhancing the march of co-operation in developing legislative and
judicial procedures.
Forced labour' a huge problem in the Gulf region
Bahrain was specifically chosen to host a workshop on labour trafficking because of the
massive number of victims in the Gulf. International Trade Union Confederation - Asia
Pacific (ITUC-AP) workers' rights division director P Haridasan said the problem of
"forced labour" was a huge concern in the region. He revealed 2.6 million people
worldwide were categorised as forced labourers, adding he hoped to use his visit to
Bahrain as a fact-finding mission to help tackle the problem. "This is a huge number and
our main priority is to address the issue," he said. "The definition of a forced labourer is
one who is doing work upon threat, whether physically, sexually or verbally."Hundreds
of labourers, especially from the South Asian region, are forced to come and work in the
Gulf.
GCC condemns Israel's illegal settlement activities
GCC Secretary General Abdul Rahman Al-Attiyah on Wednesday condemned Israel's
decision of building 900 settlements in Jerusalem. A statement released by Al-Attiyah
said such irresponsible practices by Israel are a flagrant violation of international laws, a
blatant challenge to international efforts to revive the peace process in the Middle East,
particularly with regard of establishment of a Palestinian state with its capital in
Jerusalem. Al-Attiyah warned of the danger of the continued settlement policy in
Jerusalem, and other occupied Palestinian territories, noting that the new Israeli steps
regarding the settlements reflect beyond any doubt the approach of hegemony and
arrogance, a policy that undermines chances of achieving comprehensive and just peace
and leads to more frustration and further regional instability. Moreover, he called on the
international community, namely the Security Council, to shoulder its responsibilities and
take action, and put an end to Israeli settlement policy, and to force the Israelis to comply
with the resolutions of international legitimacy. Furthermore, he called on Tel Aviv to
immediately stop the illegal settlement activities, and "halt Judaization of Jerusalem."
The GCC is an influential regional bloc, comprising Saudi Arabia, Kuwait, the United
Arab Emirates, Bahrain, Qatar and Oman.
275
'GCC summit in Kuwait will be launch pad for unified Gulf currency'
The upcoming GCC summit in Kuwait will be the launch pad for the unified Gulf
currency, Deputy Premier and Foreign Minister Sheikh Dr. Mohammad Sabah Al-Salem
Al-Sabah said Wednesday. Hoping for the United Arab Emirates (UAE) and the
Sultanate of Oman to get onboard, Sheikh Dr. Mohammad, in a press conference he
jointly held with his visiting Bahraini counterpart Sheikh Khaled Bin Ahmad Al-Khalifa,
said "the train moved and on its way for accrediting the currency in 2010." Sheikh Dr.
Mohammad's conference remarks came after the Kuwaiti-Bahraini Higher Cooperation
Committee concluded its fifth high-level meeting earlier today. The currency issue is not
only about printing new bank notes, but it mainly involves devoted efforts so as to
establish a sound legislative ground that would allow the currency to be launched,
Kuwait's top diplomat noted, pointing out "technicalities of the matter should be left for
by bankers to handle not politicians." As for the Decent Living Fund, ordered by His
Highness the Amir Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah, with Kuwait footing
USD 500 million for it, Sheikh Dr. Mohammad said the fund was not only meant to
finance government projects, yet it is involved in funding projects of the private sector in
order to fight poverty and support development in Arab countries.
SAUDI ARABIA
International Front
Riyadh urges UN to end double standard
Saudi Arabia on Friday accused UN Security Council members and world powers of
practicing a double standard while dealing with international conflicts.“How can these
countries call for the protection of civilians during military conflicts while they vote
against a decision to protect those civilians?” asked Khaled Al-Nafeesi, the Kingdom’s
permanent representative to the United Nations. He was referring to the rejection by some
UN member countries of the Goldstone report on Israeli excesses against the Gazans
during its three-week-long assault of Gaza early this year. Judge Richard Goldstone and
his commission members found that Israel had flagrantly violated the international law by
killing 1,170 Palestinian civilians during the 22-day conflict, the Saudi official said while
addressing a special session of the UN Security Council. “Had such a commission been
set up some 40 years ago and a thorough investigation conducted about Israeli atrocities
since then, we would have received a very painful report that would have been shameful
for Israel,” Al-Nafeesi said. He said Saudi Arabia upholds the principles of sovereignty,
territorial integrity, political independence and noninterference in the internal affairs of
other countries.
Renowned Islamic scholars to attend MWL conference
276
Makkah Gov. Prince Khaled Al-Faisal will open Saturday a conference on “The
problems facing Muslim youths and their solutions” at the headquarters of the Muslim
World League (MWL) in Makkah, said Abdullah Al-Turki, secretary-general of the
MWL on Tuesday. “The MWL gives utmost importance to youth issues and dialogue
with other communities as well as problems such as terrorism and extremism,” he told
reporters. “We are ready to cooperate with other Islamic, social, cultural and media
organizations to educate young Muslim men and women on Islam.” He commended the
interfaith dialogue initiative of Custodian of the Two Holy Mosques King Abdullah,
saying it would help promote peaceful coexistence of nations. “We are also concerned
with Muslim minorities in different countries,” the MWL chief said. Recently, the MWL
held a seminar in Kuala Lumpur on the issue. He also disclosed that the MWL would
hold an international conference next year to mark its golden jubilee, adding that the
conference would focus the league’s role in serving the interests of humanity. The meet
on youth issues is held as part of a series of Makkah conferences organized by the league
annually on the occasion of Haj, making use of prominent Islamic scholars who take part
in the annual pilgrimage as its guests.
King to host 2,000 Palestinian pilgrims
Custodian of the Two Holy Mosques King Abdullah has instructed authorities to host
2,000 relatives of Palestinians killed in Israeli attacks so they can perform Haj this year.
They will be treated as the government’s guests. Palestinian Endowment Minister
Mahmoud Al-Habbash commended the king’s gesture and said it would make all
Palestinians happy. He said the pilgrims would be selected equally from Gaza and the
West Bank by a special panel. He said the royal gesture covers housing and
transportation, adding that Palestinian embassies in Amman and Cairo have been
instructed to collect the beneficiaries’ passports to get Haj visas. About 5,000
Palestinians, including the king’s guests, are expected to perform Haj this year.
New Israeli move major obstacle
Saudi Arabia said on Wednesday that Israel’s decision to build 900 new homes in
annexed East Jerusalem constituted a “major obstacle” to efforts to restart Middle East
peace talks. “We feel that a settlement is a major obstacle in the way of the peace process
... in East Jerusalem in particular,” Foreign Ministry spokesman Osama Nugali told AFP
when asked about Israel’s decision on Tuesday to expand the Gilo settlement in East
Jerusalem. “Unless there are decisive measures taken in regard to these policies, it is too
difficult to advance the peace process,” Nugali said. Saudi Arabia has insisted that Israel
freeze all settlement expansion in the West Bank before it helps revive peace talks
between the Palestinians and Israelis. Earlier this year, it rejected requests from Tel Aviv
and Washington to make a concrete gesture of good will to entice Israel into peace talks.
Riyadh supports the stance that the Palestinians cannot enter into peace talks as long as
Israel expands settlements.
Kingdom, US sign pact
Saudi Arabia and the United States have discussed prospects of expanding military
cooperation during a strategic meeting attended by Prince Khaled bin Sultan, assistant
minister of defense and aviation for military affairs, it was announced on Thursday. The
277
Saudi Press Agency said the two sides signed an agreement following a meeting of the
Saudi-American Strategic Planning Committee. Prince Khaled and US Deputy Defense
Secretary Michele Flournoy signed the pact. “The committee held a meeting at the
Pentagon under the co-chairmanship of Prince Khaled and Flournoy,” said SPA. “The
meeting reviewed military cooperation and ways to realize the joint interests of both
countries.” On Tuesday, Prince Khaled held talks with US Defense Secretary Robert
Gates. SPA, which reported the meeting Wednesday, did not give any details. But
Pentagon Press Secretary Geoff Morrell stated before the meeting that the two officials
would “discuss a range of bilateral defense and regional security issues.” Prince Khaled
earlier met with Saudi military students pursuing higher studies in the United States. The
meeting took place at the office of the Saudi military attaché in Washington.
SARKOZY (FRANCE) VISIT TO KINGDOM
Abdullah, Sarkozy discuss Mideast
Custodian of the Two Holy Mosques King Abdullah held wide-ranging talks with French
President Nicolas Sarkozy here on Tuesday. The talks, which took place at the king’s
ranch in Janadriya, focused on a range of regional and international issues including the
Middle East peace process, the latest developments in Lebanon, Iraq and Iran besides
ways to boost ties between Riyadh and Paris. “In addition to the stalled Middle East
peace process that needs to be revived as early as possible, King Abdullah and Sarkozy
discussed many other issues during their one-on-one meeting,” said a diplomatic source.
On arrival at King Khaled International Airport, Sarkozy inspected a guard of honor with
King Abdullah before he left for the king’s ranch, said a French official. Sarkozy arrived
in the Kingdom with a few advisers, but no ministers. France is interested in Kingdom’s
infrastructure projects, power plants, high-speed trains, aircraft and defense projects. It
was not immediately known whether Sarkozy discussed the commercial issues during his
first round of talks with the king on Tuesday night.
Kingdom and France call for resumption of Mideast talks
Custodian of the Two Holy Mosques King Abdullah and French President Nicolas
Sarkozy agreed on the need to restart Middle East peace talks and discussed Iran’s
nuclear program.
In three hours of talks at King Abdullah’s ranch at Janadriya late on Tuesday, the two
leaders discussed a host of issues including Lebanon. In an apparent reference to recent
border incursion, Sarkozy voiced support for Riyadh’s right to defend its territory, the
Saudi Press Agency reported. On the second day of his trip on Wednesday, Sarkozy had a
meeting with Prince Naif, second deputy premier and minister of interior. They also
discussed the Middle East peace process, Iran, Lebanon and other regional issues.
Referring to the talks between Saudi and French leaders, Saudi and French sources said
that the two sides discussed international efforts to press Iran to suspend its nuclear
program. “Iran needs to quickly accept offers to start dialogue, because the patience of
the international community is not infinite,” said Sarkozy. On his third trip in two years
to Riyadh, the French president sought to boost a personal relationship with King
278
Abdullah and the Kingdom’s top leaders, while reasserting France’s role in Middle East
politics. The two sides also touched on economic relations, including French group
Alstom’s bid to supply locomotives for the high-speed railway now under construction in
the Kingdom. The bid, to be decided next spring, faces tough competition from Germany,
Spain, China and South Korea. “The French president’s meeting with Prince Naif at King
Abdullah’s ranch here was attended by Abdulrahman bin Ali Al-Rubaian, a key aide to
the second deputy premier, and French Ambassador Bertrand Besancenot, besides a
number of Saudi and French officials,” said a Western diplomat.
SAUDI-YEMEN BORDER ISSUE
Kingdom can beat off intruders
Sheikh Saleh Bin-Humaid, imam of the Grand Mosque in Makkah, said on Friday that
the Kingdom was fully capable of deterring any incursion.
“Saudi Arabia has the power to deter such attacks,” the imam said referring to the
incursion from across the border near Jazan. Bin-Humaid, who was delivering Friday
sermon, urged Haj pilgrims not to exploit the annual pilgrimage for political purposes.
“You have to concentrate on worship, prayer and meditation and keep away from all
activities that violate the sanctity of Haj and the holy places,” the imam said. He urged
Muslims to stand united. “The annual pilgrimage is a symbol of Muslim unity and
brotherhood,” he pointed out. Meanwhile, in Jazan, Saudi security forces continued
operation to flush out remaining infiltrators. They also checked people passing through
checkpoints. The operations in recent days have also led to confiscations of weapons,
munitions, firecrackers, qat, hashish and heroin. “We have so far arrested 3,972 illegal
intruders since the beginning of the border attack,” Khaled bin Qazeel of the special
Mujahedeen forces of Saudi Arabia told Arab News. A number of fleeing families in
Khuba were accommodated in 16 residential units of the King Abdullah Charity Housing
Project in Daihamah village outside the zone of conflict. Several people in Daihamah
donated houses for the evacuees. A school building in Daihamah was also evacuated to
put up the homeless.
Yemeni infiltrators to be tried
The Chairman of the Supreme Judiciary Council, Saleh Bin-Humaid, said on Sunday that
the Kingdom would try the Yemeni infiltrators who attacked a Saudi border post near
Jazan two weeks ago.
Speaking to reporters after inspecting Shariah courts in the city, Bin-Humaid said the
trials would be carried out in coordination with relevant agencies. He did not give a
specific date for the start of the trials. “The matter will be handled by security and
military authorities,” the judiciary chief said, adding that the trials would start soon after
the end of the ongoing military operation to cleanse the area of intruders. Bin-Humaid
commended the Saudi security and military forces for their quick and effective actions in
driving away the infiltrators. Meanwhile on Sunday, Yemeni and Saudi forces, continued
pounding of intruders’ positions along the border. Saudi Arabia has warned the
infiltrators that shelling would continue until they withdraw 10 km from the Saudi-
279
Yemeni border. Saudi Arabia on Sunday denied press reports that its forces had arrested
Abdullah bin Ahmed bin Abdul Malik Al-Houthi. “There is no truth in these reports,” a
spokesman for the Interior Ministry said. In a related development, Second Deputy
Premier and Minister of Interior Prince Naif has instructed relevant agencies to provide
all support and care for Saudis and expatriates evacuated from the border area.
Kingdom in full control of border
The Council of Ministers announced on Monday that Saudi security forces had taken full
control of the Kingdom’s southern border after driving away Yemeni infiltrators. “The
government has provided necessary services to Saudis and residents evacuated from
villages along the border and taken measures for their safety and protection,” the Cabinet
said.
Custodian of the Two Holy Mosques King Abdullah, who chaired the Cabinet meeting,
thanked world leaders for expressing solidarity with Saudi Arabia after the attack. The
Cabinet also thanked the GCC countries for supporting the Kingdom. A GCC Ministerial
Council meeting in Doha said recently that any attack on the Kingdom would be
considered an attack on all GCC countries. An Arab League meeting also backed the
Kingdom’s right to defend its borders. Meanwhile, Saudi Arabia’s Grand Mufti Sheikh
Abdul Aziz Al-Asheikh lambasted Iran for supporting the infiltrators in order to commit
crimes and aggression. “Saudi Arabia has the right to defend itself and deter the unjust
aggression,” Al-Watan Arabic daily quoted the grand mufti as saying. He also urged
Saudis to pray for soldiers defending the Kingdom’s borders. “Special prayers should be
said for them in mosques,” he added. During the Cabinet meeting, King Abdullah
welcomed the hundreds of thousands of pilgrims who have come from different parts of
the world to perform Haj. He urged all Haj-related departments and agencies to maximize
their services to the guests of God so that they can perform the rituals in safety and
comfort.
Social Font
KAU to get Kingdom’s 2nd nuclear-research facility
Jeddah’s King Abdulaziz University (KAU) has just announced the construction of a new
nuclear-research facility to be used to research nuclear power for peaceful purposes.
The university council gave approval for the new center last week. This center would
become the second nuclear-research institute after the Saudi Arabia Atomic Energy
Research Institute at King Abdullah City for Science and Technology in Riyadh, which
was established in 1988. Saudi Arabia, a signatory to the Nuclear Nonproliferation
Treaty, has long supported the right of any country to develop nuclear technology for
peaceful energy purposes. In particular, the Kingdom has supported Iran’s right to
develop nuclear research for peaceful purposes while also holding a strong stance against
the spread of nuclear weapons in the region. In the current international debate about
Iran’s nuclear intentions, one of the Kingdom’s concerns has been the inconsistency in
focusing on what Iran might be planning while ignoring Israel’s nuclear arsenal and even
supporting Israel’s unwillingness to admit that it has nuclear weapons.
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SR20 billion plan to build 3,200 schools
The Ministry of Education has launched a SR20 billion project to construct 3,200 schools
for boys and girls in different parts of the Kingdom. The new school buildings will
accommodate more than 1.7 million students.
Keeping pace with the King Abdullah Project for the Development of General Education,
the new buildings are designed and constructed according to international specifications.
“The ministry is handed over every day two new school buildings by contractors,” said
Abdul Rahman Al-Ahmed, deputy minister of education for buildings. He said the new
projects would help the ministry get rid of its rented buildings. “This has been one of the
priorities of the ministry,” he pointed out. Al-Ahmed said the ministry has undertaken an
ambitious plan to design new school buildings, supervise their construction and carry out
their operation and maintenance. He said the ministry had signed contracts with private
companies for the maintenance of 30 school buildings. Referring to the purchase of lands
for school buildings, the minister said it is done by a joint committee comprising
representatives from the ministries of finance and education. Education Minister Prince
Faisal bin Abdullah, who has reiterated his ministry’s commitment to get rid of rented
buildings, signed a SR2 billion contract in July with a Chinese group for the construction
of 200 school buildings. The Council of Ministers had allowed the ministry to contract
with foreign companies to speed up the implementation of school projects. Abdul Ilah
Saaty, vice dean of Jeddah Community College, said the government’s decision to
construct new school buildings would contribute to improving the country’s educational
standard.
Community services to be privatized
The government wants to privatize centers for the disabled and the elderly. The move
aims at providing better community services. Attending a workshop entitled
“Privatization of Community Services” held at the Kingdom Hall here, Social Affairs
Minister Dr. Yousuf Al-Othaimeen said the government is keen on utilizing the private
sector and charity organizations to provide better community services to the citizens.
In addition to making use of in-house expertise, ministry officials are seeking the help of
specialists from outside to work on the privatization strategy. The ministry previously
issued permits to the private sector to open day-care centers for the disabled. “The
number of private sector day-care centers operating today exceeds 50,” said the minister.
“The government remains obliged to provide services to citizens despite its attempt to
privatize community services,” he said. As the first step, the ministry aims at privatizing
rehabilitation and career qualification centers for the disabled and also homes for the
elderly. Other community services are expected to follow. By holding the workshop, the
ministry aims at setting the basic guidelines needed to achieve its goal. “It will be carried
out in stages,” said Fahd Al-Badi, adviser to the minister. “Step one is to introduce the
strategy,” he said. He added that after Haj the ministry would launch a program to
privatize the disabled community service centers. “The (ministry’s) goal is not to get
financial gain. However, the private sector can provide the services and we know that
there is a market demand for such services,” he said. There are permits for day-care
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centers for the disabled but rehabilitation centers where patients stay for a long time do
not exist, he said. The ministry will play a supervisory role in the privatization of the
centers, he added. “In my opinion, by playing a supervisory role and handing the
operation to a third party, better services can be achieved,” he said.
New kiswa handed to guardian
The new kiswa (cloth) for the Kaaba was presented to its eldest guardian at a special
ceremony on Wednesday evening.
Hajj/Swine Flu
Local pilgrims avoiding Haj due to H1N1
Many citizens and expatriates are put off from performing Haj due to health warnings
swine flu could get worse during the autumn and winter months, according to Haj
companies in the Eastern Region. They added that the number of people registering with
them had dropped by about 40 percent over last year.
Another factor that caused prospective pilgrims to shy away from performing Haj this
year was the cost, which can sometimes reach SR10,000 per pilgrim. Owner of
Dammam-based Al-Zufairi Haj and Umrah Company Saleh Al-Zufairi said only 20
people registered with his company this year, down from 200 people last year. He
accused Haj companies of unnecessarily raising prices while providing basic services.
“This is an exploitation of the guests of God,” he warned. Al-Zufairi, however, added a
few companies did have to pay high prices for accommodation and food in the holy sites.
He recalled the Haj Ministry had initiated a program for cost-effective pilgrimages,
ranging between SR1,500 and SR3,900 for certain categories of pilgrims. “The incentives
extended to us included increasing our quota of pilgrims next year from 700 to 800,
allowing us to accommodate as many as 10 people in the same tent and encouraging us to
use ordinary furniture,” he said. Despite the lucrative incentives offered by the ministry
to keep Haj costs low, Zufairi said only 31 Haj companies joined the program.
Meanwhile, the Ministry of Health urged high-risk groups on Sunday to get vaccinated
against swine flu using its special centers spread throughout the Kingdom.
70% drop in local pilgrims
This year’s Haj is to experience a sharp decline in the number of Saudi and non-Saudi
domestic pilgrims, said Saad Al-Qurashi, head of the Haj and Umrah Commission at the
Makkah Chamber of Commerce and Industry. “There will be 70 percent fewer domestic
pilgrims this year compared to last year,” said Al-Qurashi. “As of today, around 68,000
Haj permits have been issued to domestic pilgrims. That number includes expatriates and
people who come from neighboring GCC countries,” he said. Al-Qurashi added that 1.7
million Haj visas have also been issued to foreign pilgrims. The entire Haj and Umrah
sector is currently seeing heavy financial losses with experts estimating that losses are
running into hundreds of millions of Saudi riyals. Many Haj groups have also been forced
to drop prices to lure pilgrims.
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The sharp decline is thought to be because of local people opting to travel abroad during
the Haj holidays and the fear of a potential H1N1 outbreak in spite of the Saudi Ministry
of Health assuring members of the public that swine flu vaccines are available and safe.
The Kingdom also witnessed a decline in pilgrims last Ramadan. To attract more
pilgrims, the Passport Department — the body responsible for issuing Haj permits — has
extending the time for accepting applications from people wanting to perform Haj, said
Director General of the Passport Department Maj. Gen. Salim bin Mohammed AlBulaihed.
20 swine flu cases reported among pilgrims
Twenty swine flu cases have been reported among foreign Haj pilgrims since they started
arriving for this year’s pilgrimage, Health Minister Dr. Abdullah Al-Rabeeah said at a
press conference in Jeddah on Thursday.
“Twelve of them have been treated and the remaining cases are under observation. We
hope they will recover within two days,” he said. Al-Rabeeah said no other cases of
contagious diseases have been reported among pilgrims, claiming the ministry’s early
health preparations for this Haj season were bearing fruit. “Our focus this year has been
on swine flu and the Department for Preventive Medicine and Haj agencies have
appointed 80 consultants for the intensive care centers during the current season,” he
said. These consultants include specialists from contagious disease control centers in
Saudi Arabia, other Arab countries and the United States. Al-Rabeeah said the ministry
has ensured adequate supplies of medicine to treat the disease, and this includes 1.5
million doses of the H1N1 vaccine for pilgrims. On Thursday he held a meeting with top
officials to review the ministry’s preparations to meet pilgrims’ health needs. He said the
ministry had taken every precaution to protect pilgrims against swine flu and other
contagious diseases. “We have also installed the Biomimetic and Cognitive Robotics
laboratory to detect swine flu,” he said. He said BCR tests are available at Mina Hospital,
in addition to the three high-tech labs in Makkah. He stressed that the ministry is able to
contain the flu because of its intensive effort in coordination with the World Health
Organization.
The Ministry of Health has set up 14 hospitals in Makkah with 2,782 beds. Besides these
facilities, these hospitals are equipped with 244 beds in intensive care units and 287
emergency beds. There are 35 permanent health centers in Makkah, nine seasonal health
centers along the Makkah-Madinah Expressway and four centers inside the Grand
Mosque in Makkah. Twenty-eight health centers will operate in Mina, 46 in Arafat and
six in Muzdalifah. The ministry has deployed 10,000 health workers including 100
doctors, 60 of them foreign specialists in infectious diseases, and 147 foreign nurses for
intensive care units and emergency centers.
Meanwhile, the United Arab Emirates has ordered all pilgrims coming for Haj this year
to show evidence of having been vaccinated against swine flu. “We made the vaccination
mandatory for all pilgrims to protect them, their families, and all those who come into
contact with them,” executive director of health policy at the UAE Ministry of Health Dr.
Mahmoud Fikri said. The UAE made the stipulation after it secured the first batch of the
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swine flu vaccine, and last week launched its national campaign to vaccinate all citizens
and expatriate residents for free. Sheikh Mohammed bin Zayed Al Nahyan, the crown
prince of Abu Dhabi and deputy supreme commander of the UAE armed forces, was the
first in the country to have the vaccine. The UAE Ministry of Health has designated four
locations in Dubai and another 30 across the country for vaccinating pilgrims and
complete other medical checkups needed for Haj. All UAE pilgrims will obtain the
yellow health international vaccination certificate once they have received the swine flu
vaccination. The certificate also proves all other vaccinations required for Haj have been
administered, in accordance with Saudi requirements.
Economic Front
Govt employees to receive 15 percent inflation allowance
Government employees and non-Saudi government contractors will receive a 15 percent
inflation allowance from the beginning of the next Hijrah year, corresponding to Dec. 18,
2009, informed sources said.
Ministries and government departments have already moved the file of government
employees to complete the procedures for including the allowance in their monthly
salaries, an Arabic newspaper said. The Council of Ministers, chaired by Custodian of the
Two Holy Mosques King Abdullah, approved the inflationary allowance in January 2008
as part of measures taken by the government to counter inflation. The Cabinet said
government employees would receive an allowance of five percent of the basic salary in
the first year, 10 percent in the second year and 15 percent in the third year. The
employees began receiving the allowance along with their monthly salaries in Muharram
1429 (January 2008). The Cabinet adopted a 17-point program to offset the effect of
rising inflation and prices in the country. Apart from inflation allowance, the program
included a 10 percent increase in social insurance and subsidies for essential products
such as rice, baby milk and barley. Finance Minister Dr. Ibrahim Al-Assaf said the
government was spending about SR12 billion annually on direct subsidies. He estimated
the additional annual spending at SR10 billion as a result of the payment of five percent
inflation allowance and 10 percent additional allocation for social insurance.
UAE
International Front
UAE takes part in international efforts to ensure safety of UN staff in Afghanistan
The UAE has pledged before the United Nations Security Council (UNSC) to participate
in the regional and international efforts to provide security for UN staff in Afghanistan
through hosting a number of staff in the UAE due to unstable security situation there.
The remark was carried in a speech delivered by HE Ahmed Abdul Rahman Al Jarman,
UAE Permanent Representative to UN, before special meeting held by the UNSC last
night to discuss ways of protecting civilians in cases of armed conflicts. Al Jarman
reiterated that the UAE stance stems from its commitment to provide security to civilians
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during the armed conflicts, calling on the international community to boost regional and
international cooperation in this respect. He added that despite the important steps taken
by UNSC over the last decade to improve protection of the civilians during the armed
conflicts through issuance of four historic resolutions and statements, specifying basic
measures to tackle this issue, yet the international community still witnesses thousands of
civilians, particularly children and women suffer and face acute humanitarian problems at
the conflict zones. Al Jarman noted the situation exacerbates at the conflict zones,
because parties in the conflict do not adhere to their commitments over protection of
civilians as per the international law in this regard. The UAE official said his country
condemned with strong terms possible the intended attacks on civilian and use of random
disproportionate military force against the civilians. Al Jarman noted that the UAE
welcomes the recent resolution number 10/64 adopted by the UN General Assembly, on
the facts finding commission of war crimes against humanity inflicted by Israel in Gaza
Strip, hoping that appropriate action would be taken to put pressure on Israel to allow
further international investigations to ensure accountability and justice within three
months. He added that the UAE backs the procedures taken by UN recently in
Afghanistan to ensure safety of the UN staff there, urging the international community,
particularly the UN organisations to offer technical assistance to the host countries to
enable them track down perpetrators.
UAE establishes diplomatic relations with East Timor
The UAE issued last night a joint statement with East Timor, on establishing the
diplomatic ties with effect from Friday. The statement was signed on behalf of the UAE
by HE Ambassador Ahmed Abdul Rahman Al Jarman, UAE Permanent Representative
to United Nations, while on the side of East Timor Republic by Ambassador Nelson
Santos, East Timor Permanent Representative to UN in presence of the diplomats from
both countries. The joint communiqu stresses the interest of both governments to boost
understanding and cooperation in the political, economical, social, humanitarian, cultural
and scientific areas as per principles inscribed in the UN charter. Following the signing
ceremony, Al Jarman and his Timorese counterpart discussed the ties and ways to boost
them.
UAE, Pakistan discuss military cooperation
The commander of UAE Naval Forces, Rear Admiral Ahmed Mohammed Al Sabab AlTenaiji, yesterday met in his office Admiral Noman Bashir, Chief of Naval Staff of the
Pakistan Navy and the accompanying delegation. They discussed professional matters of
mutual interest and reviewed military cooperation between the two countries and ways to
strengthen it.
Khalifa stresses boosting of the relations between UAE and Ukraine
President His Highness Sheikh Khalifa bin Zayed Al Nahyan, held talks here today at Al
Mushrif Palace with Ukrainian President Viktor Yushchenko, who is currently visiting
the UAE on official visit, in presence of HH General Sheikh Mohammed bin Zayed Al
Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE
Armed Forces. Sheikh Khalifa welcomed President Yushchenko, stressing boosting of
the relations between the two countries in all fields. He wished him good stay in the
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UAE. The meeting tackled joint cooperation ties and ways to bolster them to serve joint
interest of the two peoples, particularly in the economic, investment and tourism fields.
The two presidents exchanged views on the latest issues at the regional, international
arenas and issues of common interest. The UAE President reiterated that the UAE was
keen to enhance the relations with the friendly countries and continuously work to
preserve the world peace and security, as well as strive for joint work to further develop
economic and investment partnerships with different countries and international
corporations. On his part, the Ukrainian President expressed pleasure on visiting the UAE
and meeting Sheikh Khalifa, hoping that the relations would further grow and progress.
He added that the visit would be a direct chance to explore the economic, industrial
developments and investment opportunities being experienced by the UAE.
Nuclear Energy Front
Nuclear deal becomes reality: UAE minister
The historic agreement between the UAE and the US on the peaceful development of
nuclear energy is now a reality, Dr Anwar Gargash, Minister of State for Foreign Affairs,
confirmed on Monday. “Now only a few technical steps, like exchange of diplomatic
notes, are left to operationalise the agreement,” the minister told Khaleej Times on the
sidelines of a conference here on Energy Security in the Gulf. The deal, commonly
known as the 123 Agreement, was signed on January 15 in Washington by the then US
Secretary of State, Condoleeza Rice, and the UAE Foreign Minister, Abdullah bin Zayed
Al Nahyan, before being referred to bilateral legislative processes. The US Congress had
90 days to review the deal, a period that gave over in October. There were reports that the
UAE Cabinet too had approved the accord in the last week of October. But this is the first
time that a UAE minister has confirmed the milestone. “The 123 agreement has become a
reality,” Gargash said. “The highest bodies of both the countries have approved it.”
Social Front
FNC discuss foreign labour and occupation of islands
The Federal National Council (FNC) on Monday discussed and answered queries on
subjects ranging from education, health and the financial crisis to energy, the foreign
workforce here and Iran’s occupation of UAE’s islands.
The FNC was putting forward its answers pertaining to the issues raised by the President
His Highness Shaikh Khalifa bin Zayed Al Nahyan. The message was read out on his
behalf by His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice President and
Prime Minister of the UAE and Ruler of Dubai at the opening of the fourth ordinary
session of the 14th legislative chapter. The session was attended by the crown princes and
deputy rulers of the emirates. “The agenda of the Council at its current session is full of
many issues that concern the country. Besides education, health, media, food security and
energy, the foremost important topics the Council will table for discussion include
Emiratisation of jobs, and creating job opportunities for UAE citizens,” the Council said.
“The Council will enact the appropriate legislations, and take necessary measures as well
as restrictions to control the defect in the demographic structure, which emerged as a
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result of the increasing number of foreign workforce, which adversely affects the UAE
national identity,” the council stated.
UAE, South Korea discuss military cooperation
Chief of Staff of the UAE armed forces Lt.General Hamad Mohammed Thani Al
Rumaithi received at his office yesterday the South Korean Minister of National Defense
Kim Tae-young who is currently on a visit to the UAE. Al Rumaithi welcomed the
Korean delegation and hailed the existing relations between the United Arab Emirates
and the Republic of Korea. During the meeting held at the General Command of the UAE
Armed Forces, they also discussed aspects of cooperation in military fields between the
two sides and ways of boosting them, and reviewed a number of topics of common
interest. The Korean Defense Minister praised the level of the military ties between the
two countries and asserted his country's keenness to strengthen and deepen this
cooperation. The meeting was attended by Major General Ali Mohamed Sabih Al Kaabi,
Deputy Chief of Staff of the armed forces and a number of senior officers of the armed
forces.
Economic Front
Dreams still come true in UAE: Mohammed
The UAE remains largely untouched by the global financial crunch and its growing
economy looks forward to the future, media delegates from 46 countries were told on
Thursday.
His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime
Minister of the UAE and Ruler of Dubai, refuted claims that Dubai in particular had been
affected, official news agency Wam reported. Receiving the delegates — here at the
invitation of the National Media Council — Shaikh Mohammed amplified that Dubai and
Abu Dhabi had one economy: the UAE economy. “We have turned most of our dreams
into reality,” Shaikh Mohammed said. In example, he cited the record success of the
Dubai Metro and the increase ?in the number of passengers coming into the UAE. He
noted the economy was growing and the nation looked forward to a future in which
UAE’s civil nuclear energy project would play a significant role. In the first 10 months of
2009 alone, seven million more passengers than the aggregate 2008 had arrived at the
Dubai International Airport, he said. Last year, the point of entry recorded 37 million
passengers.
KUWAIT
International Front
Iran's presidential advisor welcomes Kuwaiti PM's visit
The Iranian president's media advisor Ali Akbar Javanfekr welcomed here Friday the
upcoming visit of His Highness the Prime Minister of Kuwait Sheikh Nasser AlMohammad Al-Sabah to Iran.
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Speaking to KUNA, Javanfekr expressed hope that the visit would be a new step towards
strengthening relations between the two countries, stressing that strengthening ties would
contribute in solving the region's problems. Kuwait and Iran have many common
characteristics, he said. Meanwhile, Al-Wifaq Iranian newspaper's editor in chief
emphasized the importance of the visit and described it as a suitable opportunity to
develop relations. The outcomes of the visit would have important effect on the two
countries and the region, especially since Kuwait is currently playing a significant role in
the area, he noted. Kuwait and Iran can cooperate with other oil countries in the area in
forming a large economic block, he said. The Kuwaiti Premier will be visiting Iran on
Saturday and will meet President Mahmoud Ahmadinejad and a host of senior officials.
Kuwaiti PM's visit to Iran to develop ties - ambassador
The visit of His Highness the Prime Minister Sheikh Nasser Al-Mohammad Al-Sabah to
Iran on Saturday aims to develop the relations between the two countries, said Kuwait's
Ambassador in Iran Majdi Al-Thifeeri. Al-Thifeeri told KUNA that the visit is very
important and as it comes as part of Kuwait's efforts to buttress stability, security, and
understanding among the region's countries. As the host of the upcoming Gulf
Cooperation Council (GCC) summit, Kuwait has a bigger responsibility towards regional
security and stability, he said. He emphasized that Kuwait and Iran had regional and
international coordination. The ambassador also pointed out that officials from the two
countries will discuss, during the visit, the Kuwaiti-Iranian relations which are based on
understanding and transparency. The diplomat recalled that Al-Sabah was Kuwait's
ambassador and dean of the diplomatic corps in Iran in the 1970s.
Political Front
Kuwaiti MP to present PM grilling motion by Tuesday
MP Faisal Al-Mislim, the official speaker of the Development and Reform bloc, has
reportedly finalized his grilling motion against His Highness the Prime Minister Sheikh
Nasser Al-Mohammed Al-Sabah. A bloc member present at its meeting on Thursday
night revealed that Al-Mislim is apparently set to present the grilling motion by the end
of official parliamentary hours on Monday or early on Tuesday, prior to the start of the
Nov 17 session, reported Al-Shahed. Dr Walid Al-Tabtabae, another Development and
Reform bloc member, said that although the grilling will inevitably be passed to the
Constitutional Court for consideration, this action will not reduce the need for political
accountability and will not prevent the grilling from taking place. Dr Al-Tabtabae urged
Al-Mislim not to postpone the presentation of the grilling motion until after the Nov 17
session in order not to undermine the importance of the interpolation. The bloc insists
that the grilling is "wholly warranted," said one member, saying that its principal focus
would be on the issue of the premier's diwan expenses, including the cheque reportedly
made out to a previous MP, which Al-Mislim recently controversially presented a copy of
in parliament. An associated issue of equally important concern is what the bloc sees as
the government's evasiveness over the matter, said the member. We have proof and
documents confirming these violations, which will be revealed during the grilling
sessions," the member continued. On the subject of the possible parliamentary dissolution
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that many fear could result from further political turbulence, he said, "We carry out our
constitutional duties, but the dissolution of parliament is that of the decision maker.
Kuwaiti MPs seek to question two ministers
Two Kuwaiti opposition MPs yesterday filed separate requests to question the interior
and public works ministers over allegations of financial and administrative irregularities.
Mussallam al-Barrak asked to grill Interior Minister Sheikh Jaber Khaled al-Sabah for
allegedly misleading parliament by providing false information during an earlier grilling
in June. A fellow MP, Mubarak al-Waalan, demanded to question in parliament Public
Works and Municipalities Minister Fadhel Safar over alleged financial and administrative
irregularities at the two ministries. Sheikh Jaber survived a no-confidence motion in July.
Kuwaiti MP files to quiz defence minister
An opposition MP on Thursday filed to quiz Kuwaiti Defence Minister Shaikh Jaber
Mubarak Al Sabah over allegations of financial violations in the ministry.
“The minister is responsible for committing a number of financial and administrative
violations that he has refused to rectify despite repeated appeals,” MP Daifallah Buramia
told reporters after filing the request. He also claimed that the independent accounting
watchdog, the Audit Bureau, was prevented from monitoring defence ministry contracts
and its team to the ministry was forced to pull out. The lawmaker also accused Shaikh
Jaber, also first deputy prime minister, of being responsible for the death of several
Kuwaiti soldiers during wargames in northern Kuwait several years ago. “I have filed this
grilling in order to carry out my duty as a lawmaker to safeguard public funds,” Buramia
said. Kuwait’s parliament voted unanimously two weeks ago to ask the Audit Bureau to
probe three planned arms deals with the United States and France that one lawmaker said
are worth billions of dollars. The decision, requested by 32 MPs and not opposed by
cabinet ministers present at the parliamentary session, calls on the independent Audit
Bureau to investigate whether the acts were “in line with Kuwaiti laws.”
Govt to face grilling with constitutional tools: Kuwaiti minister
The government will face the MPs grilling with all the available constitutional tools,
Deputy Prime Minister for Economic Affairs, Minister of State for Housing Affairs, and
State Minister for Development Affairs Sheikh Ahmad Fahad Al-Ahmad Al-Sabah
affirmed here Thursday. Speaking to the press, the official said that questioning the
government on its performance was a constitutionally given right for MPs and only the
government and parliament have the right to comment on the issues concerning the
grilling. The Kuwaiti people have the right to question their government and the state is
willing to listen to people's complaints or suggestions regarding matters that would
contribute to the development of the political scene, stated Sheikh Ahmad.
BAHRAIN
International Front
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Kuwaiti-Bahraini committee stresses importance of developing relations
The Kuwaiti-Bahraini Higher Cooperation Committee affirmed here Wednesday after the
conclusion of its fifth high-level meeting that both brotherly countries would focus on
means to develop their relations in all possible domains. A statement by the committee
affirmed that both nations would base their future cooperation plans on the long and
strong historic relations between Kuwait and Bahrain, saying that Deputy Prime Minister
and Minister of Foreign Affairs Sheikh Dr. Mohammad Sabah Al-Salem Al-Sabah,
Bahrain's Foreign Minister Sheikh Khalid bin Ahmad bin Mohammad Al Khalifa focused
during the committee's meeting on this aspect. The Bahraini Minister conveyed to the
Kuwaiti leadership greetings from Bahrain's leadership during his visit to Kuwait which
began yesterday.
The committee also expressed during its meetings, which began yesterday, its satisfaction
at the GCC's achievements, hoping that the next summit in Kuwait would continue the
process of development in the GCC. Both sides signed during the course of the meetings
on agreements to develop cultural, tourism, security, economic, power, and commercial
ties between Kuwait and the Kingdom of Bahrain. The two sides also studied several
memos on enhancing relations in the sports and cyber fields in the near future.
Social Front
A mission to help Bahrain's needy
Plans to expand American Mission Hospital (AMH) are on the cards but only if money
can be raised without increasing fees for patients, retired chief medical officer and chief
executive officer Dr Paul Armerding has revealed. The 62-year-old American flew out
early this morning with his wife Rebecca to launch a new organisation in the US,
dedicated to developing medicine, education and interfaith dialogue in the Gulf.
However, before leaving Dr Armerding told the GDN that the AMH faced a growing
need to expand and upgrade, with patient numbers rocketing by around 70 per cent in the
past 10 years from 129,000 outpatients in 1999 to an estimated 220,000 this year. When
the general surgeon first joined the hospital it was on the verge of closure, but this month
alone it is expected to receive up to 700 patients a day. "This shows there is continuing
pressure on our facilities and this is despite car park limitations," said Dr Armerding.
Call to protect workers' rights
Labour exporting countries must take urgent measures to protect the rights of their
migrant workers before they leave home, international trade unions said yesterday at a
Bahrain event.
The call was part of a list of recommendations at a two-day Human Trafficking for
Labour Exploitation workshop, which concluded yesterday. The event, held at the Ramee
International Hotel, was organised by the International Trade Union Confederation's Asia
Pacific branch (ITUC-AP) and the General Federation of Bahrain Trade Unions
(GFBTU). "The steps that are taken by the exporting countries, together with those
initiated by the receiving countries can contribute, to a large extent, in stopping
exploitation of these workers," GFBTU spokesman Karim Radhi told the GDN. "We also
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urge the trade unions in the exporting countries to liaise with their respective
governments to put forward legislation for the protection of their citizens so that they are
not exploited when they arrive in a foreign country."Towards this end, the governments
can liaise with recruiting agencies who would then be held accountable for any issues of
exploitation. "We have also urged unions in these countries to impress upon their
government and its agencies to set up awareness programmes at the village level to
educate the people on what to expect when they travel abroad for work." He said that the
receiving countries had been urged to monitor violations of human rights and ensure
there are strict laws to deal with violators. "The host governments should look at the
workers' living conditions, their wages, whether they are paid in time or whether they
have proper medical care," said Mr Radhi. He said the host governments are also being
told to involve trade unions in decisions taken on the welfare of workers.
Swine Flu
New wave of flu is feared in Bahrain
Bahrain may be facing a second more severe bout of swine flu infections as winter looms.
A Health Ministry official yesterday sounded the alarm amid worrisome increasing
number of confirmed infections. "A total 300 H1N1 cases have been reported this week
alone," said ministry public and international relations director Adel Ali Abdulla.
According to updated figures, the overall number of lab-confirmed H1N1 cases soared to
1206, up from 900 within days. "Over 80 per cent of detected H1N1 cases have tested
positive," Mr Abdulla said. Faced with the increasing number of infections, the ministry
has decided to stop lab testing to concentrate, instead, on treating the cases admitted to
hospitals. Students infected with H1N1 will be also granted a five-day holiday to recover.
The decision has been co-ordinated with the World Health Organisation and the US
Institute for infectious diseases.
QATAR
International Front
Negotiations key to end Darfur conflict: Qatari PM
The Prime Minister and Foreign Minister H E Sheikh Hamad bin Jassem bin Jabor Al
Thani said here yesterday that the Darfur issue has been a matter of serious concern to the
international community as many lives have been lost, property destroyed and massive
displacement of people has taken place as a result of the conflict.
Addressing the launch of negotiations for comprehensive peace in Darfur here, the
Premier said Qatar’s efforts in the framework of the Arab-African ministerial committee
has been to find a comprehensive and urgent solution with the support of international
community. Qatar has been working in full coordination with the UN-AU (African
Union) Joint Chief Mediator for Darfur Djbril Bassole and it is still looking for every
possible means to reach a peace settlement in the conflict zone, he said. “Our vision for a
peaceful settlement in Darfur is based on the principles of unity and negotiations, peace
291
and development, in addition to good neighbourly relations between the two brotherly
countries, Chad and Sudan, which have started to improve,” the premier said. Despite the
difficult conditions and the great challenges, the Sudanese people are able to achieve
lasting peace. Their immense capabilities, inherited from their ancestors, will
undoubtedly help create the appropriate conditions for the talks and confidence-building
and set up a road map for meaningful negotiations leading to just, comprehensive and
sustainable peace.
Qatar Emir, Italian PM hold talks
HH the Emir Sheikh Hamad bin Khalifa al-Thani with Italian Prime Minister Silvio
Berlusconi in Rome yesterday. They discussed bilateral co-operation and reviewed issues
of mutual concern during their meeting at the headquarters of the Italian Council of
Ministers in the Chigi Palace. The Emir was in Rome to attend the World Summit on
Food Security.
Qatar urges world to act on Israel
Qatar has demanded that Israel stop “all its illegal settlement activities immediately and
completely”, calling on the international community “to stop this aggression”.
Addressing a session of the UN General Assembly’s Fourth Committee on the report of a
special panel to investigate “Israeli Practices Affecting the Human Rights of the
Palestinian People and Other Arabs of the Occupied Territories”, counsellor of Qatar’s
permanent mission to the UN, Tariq Ali al-Ansari, asked Israel to cease forthwith all its
violations and breaches. Al-Ansari said: “Our consideration of the Israeli practices
affecting the human rights comes immediately after the General Assembly’s
consideration of a report that reveals the worst violations of human rights by the Israeli
authorities i.e. the report of the Fact-Finding Commission on the Conflict in the Gaza
Strip” which identified gross violations in Gaza that amounted to war crimes. The State
of Qatar, he said, considered the Israeli practices as illegal and inhumane actions that
violated international humanitarian and human rights laws. “Specifically, they constitute
a clear and unambiguous breach of the relevant provisions of the Geneva Convention of
1949 on the Protection of Civilian Persons in Time of War, and are contrary to relevant
Security Council resolutions.” Al-Ansari underlined that “the settlement activity in the
occupied territory is illegal, whether or not under the pretext of natural growth, whether
or not it is conditional, and whether or not it is confined to East Jerusalem.” Qatar called
on the international community to stop this aggression, saying that “it is the
responsibility, in particular, of the five permanent members of the Security Council, and
specifically those states that have a historical responsibility for the Middle East issue.”
Social Front
Diabetes cases on the rise in Qatar: Official
Diabetes cases in Qatar are still on the rise and the assumption based on a previous
survey that showed a downward trend, is unfounded, a senior official of the Qatar
Diabetes Association (QDA) said yesterday.
292
QDA along with the Supreme Council of Health (SCH) and the Weill Cornell Medical
College in Qatar is now planning a new survey to zero in on more accurate information
about the prevalence of the disease in the country. “There is no reason to believe that
diabetes cases in Qatar are declining. Such assumptions are based on an earlier survey
which was not accurate. The medical community here now feels that there is the need for
a new study. We are now working on that jointly with the Supreme Council of Health and
other partners in the Qatar Foundation,” Sharoud Al Jundi, Program Manager at QDA
told this newspaper yesterday. “There was another survey saying that there was a slide in
the incidence of the disease. This cannot be true,” said Al Jundi adding that the
prevalence could be higher now since the risk factors among the entire population,
particularly children and the youth have increased.
OMAN
International Front
Oman, France explore ways to boost ties
Sayyid Badr bin Hamad bin Hamoud Al Busaidi, secretary-general of the Foreign
Ministry, yesterday held talks with the representatives of a French Foreign Ministry
delegation, who are currently visiting the Sultanate. The discussions aimed at exploring
the possibility of strengthening the existing bilateral cooperation between the Sultanate
and France, especially in light of the visit paid by President Nicolas Sarkozi to the
Sultanate last March. During the meeting, Sayyid Badr hailed the initiative taken by the
French side to activate the fields of bilateral cooperation and expressed the Sultanate’s
readiness to continue communication, consultation and cooperation in all areas in the
joint benefit and enhance the interests of both friendly countries and peoples. The
meeting also discussed aspects of bilateral cooperation and exchanged viewpoints on
issues of mutual interest. The meeting also covered the seminar, scheduled to be held in
Muscat today and tomorrow under the theme ‘The Sustainable development in Oman and
the French experience’.
Oman signs MoU with European Union, WHO
The Sultanate, represented by the Ministry of Health, signed a Memorandum of
Understanding (MoU) with the European Union (EU) Council and the World Health
Organization (WHO) in enhancing security against biological hazards and providing
appropriate technical support. The pact provides for the enhancement of laboratory
capabilities, the training of staff and the preparation of a national contingency plan to
face such hazards. The MoU was signed on the Omani side by Mohammed bin Hassan
bin Ali, Health Ministry’s Under-Secretary for Planning Affairs, and Thomas RodriguezPantoja, Ambassador of Spain to the Sultanate and an EU Council representative, in
addition to Dr Jihan Farah Taweelah, the WHO Representative in the Sultanate.
Mohammed bin Hassan expressed the hope that the project would be the beginning for
other initiatives of technical co-operation with participation of the EU. The ambassador
said that the EU Council adopted a decision on April 14, 2008 supporting WHO
programme of biological safety and lab security within the framework of the EU strategy
against the spread of weapons of mass destruction.
293
Social Front
UN report values Oman's development efforts
A UN Development Programme (UNDP) report, issued recently, placed the Sultanate in
the 56th position among countries of the world that succeeded in overcoming obstacles to
development. The UN Human Development Report 2009 surveyed three main criteria in
182 countries, which are an individual’s life expectancy at birth, the level of education
and the per capita share in GDP. The report is considered the basic reference in assessing
human development. A number of government departments are currently drafting the
Oman’s second national development report. The Sultanate’s first national development
report, issued in 2003, was very well received locally and internationally because of its
transparency and objectivity.
BUSINESS AND POLITICS IN THE MUSLIM
WORLD
TURKEY
Weekly Report on Turkey’s Political, Geo-Strategic,
Economic and Social Issues
Period: November 14 – 20, 2009.
Submitted By: Aasia Khatoon
Presentation: November 25, 2009
Report no.94
NEWS OUTLINE
Political Issues
294
Kurdish Issue
Today is a new beginning for Turkey"
We Initiated Democratic Move Process to Solve All Problems in
Turkey, PM Erdogan
Has Your Village Ever Been Evacuated?, Erdogan Asks Parliament
DTP Leader Proposes Establishment of a Parliament Committee on Democratic Move
Government Has Given Up Fighting against Terrorism, MHP
Chairman Bahceli
Main Opposition Leader Says Government and PKK Are in Cooperation
Democratic initiative crosses important threshold
Initiative picks up momentum with new rights reforms
Government ready to sacrifice whatever it takes to end terror
Turkey’s democratic initiative welcomed in troubled Kirkuk
Party closure practice to end with democratic initiative
Name change referenda to be held in 2010 as part of initiative
Bahçeli slams democratic initiative, lambastes PM
PKK leader Öcalan gets new prison mates in İmralı island
Drug Smuggling As The Main Financial Source of the PKK
Terrorism
Turkey expects massive PKK returns from Iraq's Makhmour camp
OTHER Political Issues
AK Party wins critical local elections in Yusufça
US follows Ergenekon trial, backs democratization process
Col. Çiçek interrogated about figures behind action plan
Poll: Military plot damaged public trust in TSK
295
Plot colonel Çiçek’s release unlawful, say prominent jurists
Third letter exposes further military plans against nation
Newspapers fabricated reports in line with military plot
Wiretapping scandal still echoes in capital
Çiçek’s release raises doubts about court impartiality
Counter Narcotics Operations
Turkish frigate returning to Turkey from Somali anti-piracy
mission
Geo-Strategic Issues
Turkey says it may store low-enriched uranium from Iran
Turkey offers help to overcome confidence crisis over Iran’s LEU
Ahmedinejad Says Turkey Plays Constructive Role In Talks Over Iran'S Neuclear
Program
Celebrations to mark TRNC's 26th Anniversary
Turkey's FM in Iran to meet Ahmadinejad over nuke talks
Turkey's FM meets Iran's President, calls Bosnia's Silajdzic
Turkish state minister in Syria to attend cooperation symposium
Turkish foreign minister in Spain on a three-day trip
Turkey Expects Spain To Support Its Eu Membership, Minister
Turkey's FM writes on EU ties on Spanish paper
Italian President Napolitano Arrives In Ankara
6th Turkish-Italian forum will take place in Istanbul
Turkey's PM meets Italy's President in Ankara
Italian President meets Turkish Parliament Speaker
Turkish, Egyptian armies sign MoU
296
Anti-Islamic Dutch lawmaker to visit Turkey
Turkish Interior Minister Atalay Due to Russia
Turkish Foreign Minister Receives American-Turkish Council
Chairman
Egyptian Defense Minister Pays Visit To Top Turkish Commander
Turkish FM Davutoglu to Attend Karzai's Inauguration
Turkey- Bangladesh JEC Meeting Held
PM Erdogan Departs For Italy For FAO Gathering
Turkey's PM addresses risks of food crisis in Rome
Israel planning new 'aggression on Gaza'
Netanyahu says Turkey would not be 'honest broker'
Turkish President makes phone call with Palestinian Abbas
Israel Minister set to visit Turkey first since Gaza offensive
Turkey officially accepts secret deals with Israel for first time
Turkey condemns Peshawar attack in Pakistan
Italy Reaffirms Support to Turkey's EU Bid
EU names anti-Turkey Rompuy as first president
Turkish policy shift claims ‘nonsense,’ says US expert
Gül tells EU not to build a new Berlin Wall
Not money, not politics; Europeans look to culture in Turkey
debate
Turkey calls for more active role in EU security policy
Turkish Defense Minister Participates in EU Ministers Meeting
Turkish Foreign Minister Says Turkey's Final Perspective is Europe
Turkey’s EU entry to end ‘cultural Cold War’
Turkish, Cyprus leaders meet in Lefkosa
12 Turkish Universities to be Promoted at European Education Fair in Paris
Turkish Foreign Minister Opens Consulate General in Barcelona
297
Turkish student punished over genocide denial in France
Turkish President meets Iraq's Islamic Supreme Council head
U.S. Energy Official Urges Turkey, Azerbaijan to Agree on Gas Price in West-Bound
Pipeline
Turkey says trying to extend Nabucco to Italy, Albania
Welcomes First Elections in Kosovo
'Religion loves tolerance, but is not tolerant'
Turkey cancels nuclear power plant tender
NEWS Analysis/NEWS Articals
Turkey and the Palestinian Question
Strategic Impact of Turkish Invasion of N Iraq
Kurdish issue and Nagorno-Karabakh
Turkey Discovers Africa: Implications and Prospects
The Erdogan-Obama road map for peace
Real genocide in Ethiopia with West fund
ECONOMIC ISSUES
Switzerland joins Islamic banking world
Turkey'S Unemployment Rate Becomes 13.4 Percent
Turkey-Hungary Business Council to meet on Tuesday
Boost in competitiveness requires micro reforms, not monetary
policy’
TurkeyWilling to Boost Trade With Hungary
Turkey's Global Corruption Ranking Worsens
PM: Turkey to starts mass production of ATAK helicopters in 2013
Turkey's Islamic banks record 18 pc-net profit in 3Q
Turkey-Kazakhstan protocol signed in Astana
Turkey's 2009 auto production declines by 33.4% pc
298
SOCIAL ISSUES
Why do children become online gaming addicts?
Turkey begins swine flu vaccinations for children
Swine flu cases in Turkey rises to 73, more feared
Turkish city closes all schools for a week over swine flu
Turkish scientist developes insulin-free treatment for Type 1
diabetes
Venice-Istanbul During Ottoman Period" exhibition opened in Turkey
299
Political Issues
Kurdish Issue
"Today is a new beginning for Turkey"
Saturday, 14 November 2009 10:16
Time Turk
---------------------------Turkish Prime Minister Recep Tayyip Erdogan said Friday he believed today should be
accepted as a new beginning for Turkey.
Prime Minister Erdogan informed parliamentarians about the government's democratic
move process and its content in the parliamentary general assembly which convened to
debate "Democratic Move" in Ankara.
For the past four months, we have made efforts to explain the process to the opposition
with political politeness and wanted to receive their agreement on the
I do not wish to break the hearts of anyone or hurt emotions. We have in our hands an
historical opportunity. Our nation and their prayers are with us. Our path is the one of the
nations, Erdogan said.
It is our greatest dream to see the government and nation blend with each other and to see
that all citizens feel this in their hearts, Erdogan said.
Everyone should be confident that Turkey is progressing in this direction in an
atmosphere of security, Erdogan also said.
matter, Erdogan said.
There is an attitude (among the opposition) that exploits soldiers killed on duty, veterans
and Ataturk, Erdogan stressed.
---------------------------------------------------------------------------------------------------------------We Initiated Democratic Move Process to Solve All Problems in Turkey, PM Erdogan
Saturday, 14 November 2009
USAK Publications
----------------------------------Turkish Prime Minister Recep Tayyip Erdogan said Friday his government initiated the
"Democratic Move" process in order to solve all problems in Turkey and to facilitate
democracy in all fields.
300
It is wrong to label our move as one on terror only. It is also wrong to solely define the
move as one on the Kurdish problem, Erdogan stressed.
The goal is national unity and brotherhood. The process is one on the democratic move,
Erdogan said.
--------------------------------------------------------------------------------------------------------------------Has Your Village Ever Been Evacuated?, Erdogan Asks Parliament
Saturday, 14 November 2009
USAK PUBLICATIONS
---------------------------------------Turkish Prime Minister Recep Tayyip Erdogan asked members of the Turkish Parliament
on Friday if their villages were ever evacuated.
Have your fields, on which you plant vegetables and fruits and on which your animals
feed on, ever been declared a forbidden zone? Have your villages ever been surrounded
by terrorists at night and these terrorists sprayed bullets on individuals praying in
mosques? Erdogan asked the Turkish Parliament.
Have terrorists abducted your sons, daughters or properties? Have terrorists collected
money from you illegally? Have the roads of your villages been planted with mines?
Those saying mothers are ought to cry, have your sons or children been killed? Erdogan
asked in his speech at the Turkish Parliament.
You can not put side by side the terrorist organization with my citizens of Kurdish origin.
The problems of my citizens of Kurdish origin are different and so is the terrorist
organization, Erdogan stressed.
Talking about division and betrayal could not be associated with patriotism and
nationalism, Erdogan also said.
------------------------------------------------------------------------------------------------------------DTP Leader Proposes Establishment of a Parliament Committee on Democratic Move
Friday, 13 November 2009
USAK Publications
---------------------------------------------The chairman of the Democratic Society Party (DTP) of Turkey proposed on Friday
establishment of a parliament committee regarding the government's democratic move.
During a parliament session in which the democratic move was debated, DTP chairman
Ahmet Turk proposed that a committee in which all political parties at the parliament
were represented should be set up to find a democratic and political solution to the main
problem of Turkey.
"Since this is our problem, and we are supposed to find a solution, then the government
should hand over this issue to the parliament instead of carrying it out behind closed
doors and blurring the process," Turk said.
Turk also said that arms could totally be out of discussion in Turkey within three months
if there was a serious solution approach.
301
The DTP leader defined the issue a problem that had to be solved within Turkey's borders
and with Turkey's internal dynamics.
On July 22, Turkish Prime Minister Recep Tayyip Erdogan announced his government
initiated a move to deal with Kurdish issue and the Ministry of Interior was assigned with
the coordination of this task.
A week later, Interior Minister Besir Atalay said their government believed the Kurdish
issue would be solved with an egalitarian approach through democratization.
On November 3, the government submitted a motion foreseeing a general debate at the
parliament on all aspects of the "democratic initiative" process.
The parliament held its preliminary debate on the motion on November 10.
------------------------------------------------------------------------------------------------------------------Government Has Given Up Fighting against Terrorism, MHP Chairman Bahceli
Usak Publications
---------------------------------------Devlet Bahceli, chairman of the Nationalist Movement Party (MHP), said on Friday that
Justice & Development (AK) Party government gave up fighting against terrorism and
started to negotiate with it.
During a parliament session in which the democratic move was debated, Bahceli said the
government was about to surrender the terrorist organization.
Explaining the views of his party on the matter, Bahceli said, "for months, the
government was trying to meet and talk with us. Now, we are here. What do you want to
tell us? If we allow, tolerate, and approve what you want, what will we tell to our
ancestors?"
Bahceli said, "whatever his sect, descent or region is, any person of the Turkish nation
will not accept this. Turkey will become a whole and will not be deceived by this."
"Turkish nation is very uneasy and anxious today. It is very important to learn the target,
meaning and consequences of this move," Bahceli said urging this initiative to be
comprehended in the light of the related provisions of the Constitution.
MHP chairman said Turkey has been dealing with armed terrorism and separatism
problem in the past 25 years that targeted its national presence. He said Turkey had to
pay very big costs in fight against terrorism.
-------------------------------------------------------------------------------------------------------------------Main Opposition Leader Says Government and PKK Are in Cooperation
Usak Publications
------------------------------------Turkey's main opposition leader claimed on Friday that the government and the terrorist
organization PKK were in a cooperation.
Deniz Baykal, the chairman of the Republican People's Party (CHP), spoke at a
parliament session in which the government's democratic move was debated, and said
that the government and the terrorist organization PKK were cooperating.
"And they are negotiating with (head terrorist Abdullah) Ocalan," Baykal said.
Baykal said the government took PKK as an interlocutor and cooperated with it even
302
though the PKK had not decided to give up terrorism.
"You fight against terrorism, you do not negotiate with terrorism," he also said.
Baykal said what circles who wanted peace was to ensure PKK lay down arms as soon as
possible.
The main opposition leader said there was no change in PKK's intentions, which was to
bring out a new nation from the Turkish nation.
"The aim is to ensure national separation and division," Baykal also said.
On July 22, Turkish Prime Minister Recep Tayyip Erdogan announced his government
initiated a move to deal with Kurdish issue and the Ministry of Interior was assigned with
the coordination of this task.
A week later, Interior Minister Besir Atalay said their government believed the Kurdish
issue would be solved with an egalitarian approach through democratization.
On November 3, the government submitted a motion foreseeing a general debate at the
parliament on all aspects of the "democratic initiative" process.
The parliament held its preliminary debate on the motion on November 10.
-------------------------------------------------------------------------------------------------------------Democratic initiative crosses important threshold
Monday, 16 November 2009 11:06
Todays Zaman
--------------------------------Political executives are taking a deep breath after a critical week. Last week was
important for the government, the opposition and the Ergenekon case.
The week began with two critical questions: The first was what the atmosphere would be
like in Parliament during the discussion of the democratic initiative. The second question
was related to the investigation of a junta within the military. Would legal action be taken
against Col. Dursun Çiçek, who avoided going to the prosecutor’s office to testify for two
weeks despite evidence that he signed an action plan to discredit the Justice and
Development Party (AK Party) and the faith-based Gülen movement? What would the
government’s stance on these issues be? Would Prime Minister Recep Tayyip Erdoğan
take a step back in response to the opposition’s harsh criticism or would he continue to
argue for “more democracy and more freedom for everyone”? The Republican People’s
Party (CHP) and the Nationalist Movement Party (MHP) voiced the same criticism in
different words. While CHP leader Deniz Bayal called the initiative an “İmralıgovernment cooperation” -- suggesting that it was prepared in line with the wishes of
outlawed Kurdistan Workers’ Party (PKK) leader Abdullah Öcalan, jailed on the island
of İmralı off of İstanbul -- MHP leader Devlet Bahçeli made the same point by calling the
initiative a “PKK-AK Party cooperation.”
The government maintained a clear stance in both cases. Erdoğan emphasized once again
that they were determined to take new steps in pursuing the initiative. The first step had
to do with the junta issue. While Col. Çiçek went to court to testify several days later,
Erdoğan summoned Chief of General Staff Gen. İlker Başbuğ to the Prime Ministry and
reiterated that the junta in the army should be eliminated. The lengthy meeting was
different from their regular weekly meetings in terms of both its timing and its content. It
is commonly accepted that Çiçek, who was later released pending trial, did not commit
the crime of planning a coup by himself. Çiçek’s denial that he signed the plan is
303
considered to be evidence that he committed the crime upon an order from a superior.
Those who ordered the crime are now ordering him to deny signing the document. As for
Çiçek, who is denying that the signature on the plan is his, he is saying nothing more than
“the gods want a sacrifice.” The public is waiting for those who ordered Çiçek to draw up
this plan to be revealed. Carrying out an order that constitutes criminal activity is defined
in the Constitution as a crime. But ordering an action that constitutes a crime is even a
bigger crime.
The general sentiment is that Erdoğan, who called Başbuğ to the Prime Ministry to meet
a day earlier than their scheduled weekly meeting, does not want junta supporters to be
protected.
Refusing to back down on eliminating junta supporters from the army, Erdoğan is equally
determined to proceed forward with the democratic initiative despite opposition. He did
not pay heed to objections against holding the first parliamentary discussion on the
initiative on Nov. 10, which marks the anniversary of the death of Mustafa Kemal
Atatürk, the founder of the Turkish Republic. Instead he argued that discussing peace on
Nov. 10 would be a good way to honor his memory on that day. After heated preliminary
talks on Tuesday, Erdoğan acted like a captain steering his ship during the discussions
held on Friday.
Recalling the importance Atatürk placed on Parliament and peace, he asked, “Can we
ensure peace in the world without ensuring peace at home?” To prevent the anticipated
atmosphere of tension from the opposition, the AK Party leader managed his group very
well. Despite harsh criticism, the AK Party did not show any reaction to Baykal or
Bahçeli.
During his own speech, Erdoğan warned Baykal and Bahçeli to control their groups when
their members starting making objections. This was an important move. It was critical
that images of tension did not overshadow discussion of the initiative. Interior Minister
Beşir Atalay, who spoke on behalf of the government, gave the first hints on what the
initiative would entail and noted that this was a process that was still continuing.
Although the steps that will be taken were not officially outlined, the leaders of all four
major political parties in Parliament were in agreement on the steps that would absolutely
not be taken. While this weakened the hand of the CHP and the MHP, which were both
giving the impression that they were staunchly opposing for the sake of opposition, the
democratic initiative successfully completed its first stage.
CHP warned about failing 2011 elections
The CHP is experiencing difficult days. Its negative attitude on the democratic initiative
is gradually manifesting the troubles within the party. When CHP Deputy Chairman Onur
Öymen said, “No one said let’s not make mothers cry during the Gallipoli Campaign or
the Dersim Rebellion” -- referring to the slogan “Let no more mother’s cry,” used by the
government to defend its Kurdish initiative -- his words came as a shock to his party.
Reactions from the party’s grass roots have lowered the morale of deputies. Öymen, who
spoke on behalf of the CHP during the preliminary talks on the initiative on Tuesday,
became the focus of criticism during the discussion on Friday. While Democratic Society
Party (DTP) leader Ahmet Türk criticized Öymen for “politics that incite racism,”
Erdoğan said only a person lacking humanity could defend the Dersim massacre. It was
304
obvious that Öymen, who preferred not to enter the general assembly during the
discussion, was quite upset. He allegedly entered the general assembly at one point and
asked Baykal if he could take the podium to respond to criticism. But he walked out of
the general assembly with the same upset demeanor when Baykal responded in the
negative. Dersim is a sensitive subject for Alevis, and Alevi organizations are strongly
criticizing the CHP. İstanbul deputy Ufuk Uras, former leader of the Freedom and
Solidarity Party (ÖDP), issued the first warning that the CHP would fail in the 2011
election. Uras, who is involved in a movement to unite the contemporary left, states that
constituents are coming to realize that the CHP does not have the ability to represent the
left. Another factor that will lead to the CHP’s election failure is a party being formed by
Şişli Mayor Mustafa Sarıgül, who already has more than 10 percent of the left’s support
even though he hasn’t set up a party yet.
Ergenekon crack in DP
Political circles compare the merger of the Motherland Party (ANAVATAN) and the
Democrat Party (DP) to the mixing of olive oil and water. There are claims that
Süleyman Demirel’s pro-status quo line and Turgut Özal’s reformist line will not be able
to work together. The first sign of incompatibility came not from former ANAVATAN
members, but from DP leader Hüsamettin Cindoruk’s close friend, former Deputy
Chairman Çağrı Erhan. Erhan competed against Süleyman Soylu to become the party’s
leader after Mehmet Ağar resigned as chairman but lost the elections by a small margin.
Erhan, who challenged Soylu again after the local elections, persuaded him to choose
Cindoruk as candidate for chairman of the unification process. But the return of Demirelbacked Cindoruk to politics led to speculation that he was probably the third partner of a
CHP-MHP coalition needed to end the Ergenekon process. Cafe Capital had reported that
Erhan, who denied this claim, said they would not participate in that kind of a coalition.
Erhan severely criticized claims that Cindoruk was an Ergenekon supporter during the
congress in which the two parties merged. “We must be against coups and alongside
democracy,” he said. It’s clear that in order to ensure harmony within the DP someone
will have to constantly stir the water and olive oil. It’s also clear that the party has a long
road ahead for democratization.
-------------------------------------------------------------------------------------------------------------------
Initiative picks up momentum with new rights reforms
Todays Zaman
------------------------------------The government, decisively moving forward with the Kurdish initiative despite strong
objections from opposition parties, has decided to create two new institutions to promote
human rights.
The government plans to establish a human rights institution and a commission on
combating discrimination and strengthen legal measures to combat hate crimes.
The government has concluded that the Prime Ministry's Human Rights Directorate is not
305
addressing human rights issues efficiently. The Prime Ministry, in a statement made after
a Cabinet meeting in May, announced that a separate human rights institution would be
created. However, steps were not taken to establish the institution at the time because of
opposition from civil society organizations. The government decided to take action on
this matter after announcing its Kurdish initiative. Interior Minister Beşir Atalay plans to
ensure that the projected human rights institution is established in 2010.
The human rights institution will include representatives from universities, human rights
organizations, bar associations and other civil society actors and will operate a separate
commission on combating discrimination. The institution will function independently and
will be headed by an elected president, who will be appointed upon a recommendation
from the prime minister and with the final approval of the president. The human rights
institution will also have a separate secretariat and staff. The projected system will be
supervised by a central institution and include liaison offices in every district and
province; the liaison offices will be connected online to make sure that the system will be
free of pressure. The human rights offices will hold roundtable meetings with local
residents to identify cases of discrimination.
All institutions and organizations whose statutes and charters include provisions on and
references to human rights will have a right to representation in the human rights offices
to be created by the government.
A substantial number of civil society organizations are wary of the creation of the human
rights institution. Their cautious approach is mostly due to the fact that the government
failed to consult with them while devising its plan. The previous draft prepared by
government officials provided that the local liaison offices would include at least three
civil society organizations as representatives; however, civil society actors said it would
not be possible to meet this requirement in most districts because there are not enough
civil society organizations focusing on human rights issues. Civil society actors also
demand that the projected human rights institution be financially independent, that its
members be protected, that the procedures for the appointment and removal of officers in
the institution be publicized, that the right to conduct unlimited and unplanned visits to
state institutions be recognized and that it be given the right to make recommendations to
the National Security Council (MGK). The government agrees that the human rights
institution should be independent, but argues that the executive branch should be
represented in the institution. Human rights organizations argue that the government
representative should not be entitled to cast a vote in the meetings of the institution.
International inspections to prevent torture
The government will withdraw its reservations to the Optional Protocol to the UN
Convention Against Torture. Despite signing the optional protocol, opened for signature
in 2005, on Sept. 4, 2005, Turkey did not proceed with ratification. The government has
recently referred the protocol to Parliament for ratification amid ongoing discussions on
the Kurdish initiative.
With this move, the government seeks to create a system allowing inspection of detention
centers by international and national bodies in an attempt to put an end to torture and
other inhumane, cruel and humiliating conduct. Eager to pursue a zero-tolerance policy
vis-à-vis torture, the government has agreed to international supervision.
Speaking to Today’s Zaman, Burhan Kuzu, chairman of Parliament’s Constitution
Commission, said the commission on combating discrimination will take shape in
306
accordance with the Paris Principles and that the commission will address all cases
involving hate crimes and will also defend the rights of subjects victimized by these
offenses. Reports prepared by the commission will be reviewed and assessed by the
human rights institution; the findings of the institution will be further referred to the
government. The Paris Principles, which relate to the status of national institutions for the
promotion and protection of human rights, entered into force on Dec. 20, 1993; these
principles were recommended by the Council of Europe to its member states on Sept. 30,
1997. Turkey will take a bright and brave step toward EU membership by aligning itself
with these principles.
Hate crimes to be monitored
With the establishment of the commission, the government will not insert a separate
section on hate crimes in the criminal code. The political administration will introduce
measures to make sure that sanctions against violent offenses involving prejudices and
stereotypes against a certain group, race or gender are properly implemented. The
government believes problems arise from a lack of implementation of measures included
in legislative instruments prohibiting discrimination. The projected commission on
combating discrimination will address these problems and make sure that these measures
are properly observed in relevant cases.
-------------------------------------------------------------------------------------------------------------------- Government ready to sacrifice whatever it takes to end terror
Todays Zaman
-------------------------------------------------Pr ime Minister Recep Tayyip Erdoğan stated that his government is determined to end
terrorism no matter what the cost, and he also lashed out at the opposition for their
accusations that the government was collaborating with the terrorist Kurdistan Worker
The prime minister said to emphasize his government’s determination to end the Kurdish
problem: “We are ready to be stripped of all offices, titles we possess. All we want is that
not another drop of martyrs’ blood is shed.”
The prime minister’s remarks were a continuation of a verbal fight that started in
Parliament on Friday as the General Assembly discussed the government’s democratic
initiative aimed at alleviating and ultimately ending Turkey’s long-standing problem with
separatist violence by extending more rights to Kurds. Opposition leaders Deniz Baykal
of the Republican People’s Party (CHP) and Devlet Bahçeli of the Nationalist Movement
Party (MHP) referred to the democratic initiative as a destructive plan and accused the
Justice and Development Party (AK Party) government of serving the goals of the
terrorist PKK.
Erdoğan criticized the opposition in a very harsh tone on Saturday. “In the past 25 years,
terror has formed its own lobby and market. There are those who earn their bread from
this bloody market.” He repeated his earlier accusation that the opposition was exploiting
the terror problem and expecting political gain from the deaths of soldiers. He also said
the PKK was exploiting the same terrorism market, referring to the festive homecoming
celebration for 34 PKK returnees in mid-October as a result of this exploitation. “When
the bullets are silent, when there are no more martyr funerals, when there are no more
307
youths joining [terrorists], when there are no more tears, winners of this bloody market
will be jobless. What we saw in Habur, Diyarbakır [during the reception of PKK
returnees] was a result of this exploitation,” he said.
He referred to Nov. 13, which saw the debate on the democratic initiative in Parliament,
as a milestone. He also denied accusations that his government was talking to the PKK.
“No honored government of this country has negotiated with terrorists. Nobody can
debate the borders of this country, its secular, democratic structure as a social welfare
state governed by the rule of law,” he said.
The prime minister also criticized some media outlets for attempting to undermine the
democratic initiative process. “Some media agencies are slyly trying to undermine this
process of brotherhood with the images they publish and with untruthful news stories
they report. They are trying to axe the process.”
In his criticism of the CHP, he accused the party of betraying Mustafa Kemal Atatürk, the
founder of modern Turkey. “‘This party is Atatürk’s party,’ they sometimes say. No,
Atatürk did not leave you such a party. The first betrayal started as such. When Atatürk
died, you [the CHP] erased his pictures from the bills and placed İnönü’s pictures
instead.”
Meanwhile, CHP leader Baykal also continued to criticize Erdoğan and the democratic
initiative. He reiterated his earlier statement that the initiative was a common project of
the AK Party and the PKK. He said the democratic initiative will inevitably bring ethnic
separation to the country. “The PKK has neared obtaining what it has failed to get with
armed struggle in 25 years with the cooperation of this government.”
Speaking during a visit to the Karamanlı Municipality in Burdur, Baykal said when a
group of PKK terrorists returned to Turkey, prosecutors had rushed to their feet. “Which
law, which article allows that. The man [returnee] openly says, ‘I am not an enemy. I am
a member of the PKK. Keep that in mind when taking my testimony.’ Who made this
possible? How can [PKK leader] Apo [Abdullah Öcalan] and our government work
together in this project?”
-----------------------------------------------------------------------------------------------------------------
Turkey’s democratic initiative welcomed in troubled Kirkuk
Tuesday, 17 November 2009 13:42
Todays Zaman
--------------------------------------------------------A government initiative to solve the decades-old Kurdish issue through democratic
reforms has been welcomed in the Iraqi city of Kirkuk, the control of which is disputed
among Kurds, Arabs and Turkmens.
Residents believe the democratic reform efforts will reduce the sympathy in the city for
the outlawed Kurdistan Workers’ Party (PKK).
Before the planned Iraqi general elections in January of next year, there is growing
enthusiasm among Kirkuk residents regarding Turkey’s democratic initiative. People in
Kirkuk, which was once a main source of conflict between Turkey and the Iraqi Kurds
running northern Iraq, are now optimistic that Ankara’s Kurdish initiative will have
positive repercussions in the disputed city as well.
308
Turkmeneli Party Deputy Chairman Ali Mahdi, who is also a member of the city council,
told Today’s Zaman that improved relations between Turkey and Iraqi Kurds will benefit
the Turkmens in Kirkuk as well and asked Turkish officials to visit Kirkuk, recalling a
recent visit by Foreign Minister Ahmet Davutoğlu to Arbil.
For Islamic Party of Kurdistan Deputy Chairman and Kirkuk City Council member
Ibrahim Khalil Rashid, the democratic initiative is undermining support for the PKK in
Kirkuk. “The democratic initiative is very vital for Turkey. If it ends with peace, it will
be quite good. It will also positively affect us. The initiative is being closely monitored
here, too. We are watching developments. Now there is much support for Turkey.
Previously, there was support for the PKK, but not now; people have started to ask:
‘Turkey has provided a chance for you to return to Turkey. There is a democratic
initiative about the situation of Kurdish people. Why aren’t you returning and laying
down your weapons?’” he said.
Jamal Ja’fari, a Turkmen resident of Kirkuk, believes that Turkey’s democratic initiative
will also positively affect the Turkmens’ situation in the city. “Peace in Turkey means
peace here,” Ja’fari said.
Turkey has threatened in the past to wage war on the Iraqi Kurds if they forcefully
attempt to control Kirkuk and damage the interests of the Turkmens, who share close
ethnic ties with Turkey. Kurds claim the control of the city, saying Kirkuk historically
belongs to the Kurdish region. Arabs and Turkmens, however, dispute the Kurdish
claims.
Kurdish resident Silvan Abdullah said he believed the initiative will have repercussions
not only in Turkey but all over the world. “It may also benefit our neighbors and the
peace within Kirkuk. In fact, we do not have any problems with Turkmens living here,”
Abdullah said.
------------------------------------------------------------------------------------------------------------------Party closure practice to end with democratic initiative
Todays Zaman
------------------------------------------One of the important aspects of the ruling party’s democratic initiative is that it will allow
political parties to use languages other than Turkish while campaigning.
Determined to develop the legal groundwork of a previous Supreme Court of Appeals
decision to allow campaign materials to be produced in Kurdish, the Turkish government
will modify the Political Parties Law. There is a high probability that laying the
foundation to allow campaigning in languages other than Turkish will mark the end of the
infamous practice of party closures in Turkey.
The government, which has decided to pursue the Kurdish initiative package without
making any concessions despite staunch opposition from the Republican People’s Party
(CHP) and the Nationalist Movement Party (MHP), will amend the Political Party Law, a
critical issue that will be addressed within the scope of the Kurdish initiative. Amending
the law has been on the government’s agenda ever since a closure case was filed against
the Justice and Development Party (AK Party) in 2008. The ongoing closure case against
the Democratic Society Party (DTP) in the Constitutional Court is a major motivation in
the push to change the law.
309
The Interior Ministry prepared an initial package that is shaped according to the first
three articles of the Constitution and only requires changes to laws and by laws. The
package will go into effect once simultaneous changes are made to laws and bylaws.
Speaking to Today’s Zaman, AK Party parliamentary group deputy chairman Bekir
Bozdağ noted that although the preparations for making amendments to the laws on party
closures are complete, it is also necessary to make amendments to Articles 68 and 69 of
the Constitution to ensure changes to the Political Parties Law are effectively
implemented. Even if the government hasn’t incorporated items that require
constitutional amendments into the package, changes to the Political Parties Law and the
Election Law to allow for political campaigning in languages other than Turkish will call
for the complete revision of both laws, which means the government will also have to
address the issue of party closures.
After the AK Party closure case, AK Party and MHP lawyers prepared a joint study on
making changes to Articles 68 and 69 of the Constitution which addresses party closures,
but their study was never discussed in Parliament. The Kurdish initiative has become an
opportunity to make this change, which had been postponed, happen. Recent news
reports about the possibility of more closure cases to be initiated against some parties
reveals the urgency of this change. The European Union also strongly supports Turkey’s
efforts to make changes to the Political Parties Law. Both the Council of Europe and the
European Court of Human Rights issued warnings to Turkey in the past to end the
practice of party closures.
The Constitutional Court, which is handling the closure case against the DTP and is
stringing it out as much as possible to prevent any controversy, tops the list of institutions
looking forward to the changes. The Constitutional Court has shut down 18 political
parties since 1983 because of the anti-democratic provisions in the Political Parties Law,
which is a byproduct of the Sept. 12, 1980, coup d’état. Of the 26 party closures that have
occurred since the founding of the republic, 18 have taken place in the last 20 years,
revealing that the law has turned Turkey into a graveyard for political parties.
Modifications to the law will not be limited to the party closure system. Changes will also
be made to section of the law titled “preventing the creation of minorities” in line with
the Court of Appeal’s decision that allows the for campaigning in Kurdish. Within the
scope of the changes which the government plans to start putting into effect in early
2010, party closure standards will be modified to comply with the Venice criteria, which
restrict the reasons to close down a party. Once the changes are put into effect, the court
will only be able to dissolve parties that are fascist and/or use violence and politicians
will be able to use Kurdish in their campaigns, placards, brochures and speeches.
Politicians will be able to use not only in Kurdish but other languages as well.
After the Ankara Chief Public Prosecutor’s Office rejected a petition calling for an
investigation into DTP leader Ahmet Türk after he delivered part of a speech to his
party’s deputies in Parliament in Kurdish on the occasion of Feb. 21, International
Mother Language Day, Kars’ Digor Prosecutor’s Office determined the Political Parties
Law, which banned campaigning in Kurdish, had become void since the state-owned
TRT-6 started broadcasting in Kurdish. The decision was upheld by the Supreme Court
of Appeals.
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310
------Name change referenda to be held in 2010 as part of initiative
Wednesday, 18 November 2009 15:4
Todays Zaman
--------------------------------------------The Justice and Development Party (AK Party) government, which began a
parliamentary discussion on the country’s democratization package despite staunch
opposition from the Republican People’s Party (CHP) and the Nationalist Movement
Party (MHP), has deci
The government finds support from the Democratic Society Party’s (DTP) unreliable.
Unable to take bold steps to determine the content of the package due to resistance from
the opposition parties, the government will disclose the main features of the first stage of
the package, which will go into effect in 2010, in Parliament. One of the plans in the first
stage is to hold referenda on restoring the original names of settlements whose names
were changed during the single-party period. There are currently 28 applications at the
Interior Ministry requesting referenda to change the names of settlements.
The ministry will evaluate each request and will demand a study into whether the request
reflects the will of the region. For example, a request to restore an Armenian name to a
settlement where there are no Armenians will not be considered. If the request is
compatible with the demographics of the area, the Interior Ministry will hold a
referendum in that area and the name of the settlement will be determined according to
the results of the referendum.
The Interior Ministry, which circumscribed the scope of the initiative due to opposition
from the CHP and the MHP, has excluded items that require constitutional amendments.
The AK Party remains adamant about pursuing the initiative despite tension in Parliament
on Tuesday when deputies convened to discuss the initiative.
According to the Interior Ministry’s plan, steps that can be taken through administrative
decisions will be implemented first. Issues that require changes to bylaws and statutes
will be put into effect toward mid-2010 and items that require constitutional amendments
will be addressed last.
According to a study ordered by the ministry, close to 15,000 settlement names have been
changed since the early years of the republic. The ministry, which will compare studies
conducted by various universities on this topic with the data in state archives, estimates
that close to 100 settlement names could be changed in 2010. With the government
planning to focus on referenda to change settlement names next year, Prime Minister
Recep Tayyip Erdoğan and state ministers will try to explain the democratic initiative
package to the public in 2010.
What does the package include?
The first stage of the democratic initiative package was also put together by the Interior
Ministry. According to information AK Party executives gave Today’s Zaman, the
government will be particularly cautious about keeping all steps related to the initiative
within the framework of the first three articles of the Turkish Constitution. Turkish will
continue to be the official language of Turkey, however, obstacles related to the use of
other languages and dialects will be removed. An amendment will be made to the Radio
and Television Supreme Council (RTÜK) Law to remove the time restrictions on
broadcasting in Kurdish and private television and radio stations will be allowed to
311
broadcast in Kurdish. While public education in other languages will not be allowed,
obstacles to learning native languages will be removed. Political parties will be allowed
to campaign in different languages and the Religious Affairs Directorate will release a
Kurdish translation of the Holy Quran soon. Steps will be taken to ensure that people who
fled Turkey after the Sept. 12, 1980, military coup and were stripped of their Turkish
citizenship will have their citizenship restored. People with Kurdish roots who lost their
citizenship rights will be given the right to become Turkish citizens upon the Interior
Ministry’s offer, provided that they were never involved in terrorism or armed
demonstration.
There will not be a general amnesty for members of terrorist organizations, but there will
be abatements for prisoners as well as those who are still in the mountains. The first goal
is to disarm those in the mountains. Amendments will be made to Article 216 of the
Turkish Penal Code (TCK) to expand the scope of freedom of expression, and
precautionary measures will be taken to prevent gaps that could lead to hate crimes.
The Makhmur refugee camp in northern Iraq will be vacated with the cooperation of the
United Nations and the Iraqi government, and some 6,000 refugees will be returned to
Turkey. Steps will be taken to ensure that the terrorist Kurdistan Workers’ Party (PKK)
does not use the camp.
-------------------------------------------------------------------------------------------------------------------Name change referenda to be held in 2010 as part of initiative
Time Turk
--------------------------------------------Turkish Interior Minister Besir Atalay said on Wednesday that a positive environment
had started to appear for democratic initiative process.
"The opposition has somewhat stuck in a difficult situation because of its stance towards
the democratic move," Atalay told reporters in Moscow where he is visiting to attend a
conference.
Atalay said democratic move aimed at terminating terrorism and upgrading democratic
standards in Turkey.
He said democratic initiative would definitely succeed.
-------------------------------------------------------------------------------------------------------------------Bahçeli slams democratic initiative, lambastes PM
Todays Zaman
-------------------------------------------Nationalist Movement Party (MHP) leader Devlet Bahçeli has claimed that the ongoing
debate on the government’s democratic initiative is smearing the reputation of
Parliament.
Bahçeli said Prime Minister Recep Tayyip Erdoğan had undermined Parliament’s
credibility because he criticized the opposition for not supporting the government’s
democratic initiative. He accused Erdoğan of heading a project that aims to divide
312
Turkey.
The opposition leader said Erdoğan had unjustly slammed the opposition on Nov. 13
when he made a speech on what Bahçeli called the “PKK initiative,” claiming that the
government is making concessions to the outlawed Kurdistan Workers’ Party (PKK)
through the democratic initiative.
“The prime minister, who is a subcontractor [of those who are trying to divide the
country], smeared our great Parliament on Nov. 13, 2009 by shamelessly accusing the
opposition in his speech in Parliament,” Bahçeli said on Tuesday at his party’s group
meeting, referring to a special session of Parliament when the ruling Justice and
Development Party (AK Party) revealed the long-awaited details of its democratization
initiative to solve the decades-long Kurdish problem.
------------------------------------------------------------------------------------------------------------
PKK leader Öcalan gets new prison mates in İmralı island
Todays Zaman
------------------------------------------------------------The leader of the terrorist Kurdistan Workers’ Party (PKK), Abdullah Öcalan, who has
been serving a life sentence on an island in the Marmara Sea in solitary confinement
since his capture in Kenya in 1999, will no longer be the sole inmate of the prison a
The Justice Ministry has been working on a project to bring new inmates to the prison off
İstanbul’s coast since an international team found that solitary confinement was
detrimental to Öcalan’s mental health. They were brought to İmralı by ferry from Bursa’s
Mudanya port. Sources have said the personal belongings of the five new inmates had
been sent to the island earlier. Four of the new arrivals are PKK members, while the fifth
is a member of the militant left-wing Turkish Workers and Peasants’ Liberation Army
(TİKKO). The PKK members were identified as Bayram Kaymaz, Cumali Karsu,
Şeyhmuz Poyraz and Hasbi Aydemir; the new fifth inmate was announced as Hakkı
Alkan.
Police sources also stated that Kaymaz, who is being transferred from İzmir’s Kırıklar
Prison, is paralyzed from the neck down. Three other inmates are scheduled to arrive on
the island at a later date, sources say.
There is a prison yard that Öcalan and the newcomers can use in common. Visitors to the
island can only enter after passing a highly sophisticated fingerprint identification system.
The island is being monitored at all times through security bases at sea, as well as via
satellite. Twelve new cells have been built since the Justice Ministry started work to
bring in the new inmates.
Meanwhile, Iran and Syria have been handing out harsh punishments to PKK members
captured in operations against the terrorist group. According to information from Iranian
security sources, a jailed PKK member named İsmail Fattahian was executed in Iran’s
Sanandaj Prison last week.
Fettahian was given the death penalty on charges of “participating in bomb attacks on
behalf of terrorist organization PKK/PJAK [Party for a Free Life in Kurdistan], murder,
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armed robbery, terror, kidnapping, extortion of local residents, activities against Iran’s
national security and trafficking in drugs to create funding for the terrorist group,” by the
Iranian Revolutionary Court.
Other PKK members, identified as Enver Hüseyin Penahi, Ferzad Kemanger, Ferhad
Vekili, Eli Heyderiyan, Erselan Evliyayi, Hebibullah Letifi, İhsan Fettahian, Fesih
Yasemini, Rustem Arkiya, Şerko Maarfi, Ferhat Çalış, Enver Rostemi, Şakir Baki and
Ramazan Ahmet are facing the death penalty, with sources saying these individuals will
be executed in the next few days.
In Syria, four PKK members were sentenced to from seven to 10 years in prison after
being found guilty of a number crimes including membership in a terrorist organization,
armed robbery, kidnap of minors, attempting to annex Syrian territory to a foreign
country and inciting the region’s Kurds to revolt against the government.
-------------------------------------------------------------------------------------------------------------------Drug Smuggling As The Main Financial Source of the PKK Terrorism
Thursday, 19 November 2009
By Sedat Laciner
USAK Publications
-----------------------------------------Drug Smuggling, Organised Serious Crime and Terrorism
Some claim that Turkey is one of the transit countries of the drug trafficking, not a
consumer; so the fight against narcotic should not be involved with in the priority
struggels of Turkey. Even, within some conversations, it is possible to hear that narcotic
money has an additional value for Turkey. Data on drug usage verifies the fact that
Turkey is not a crucial drug consumption market, it is mostly a transit country. Due to
drug smuggling, billions of dollar have entered to the country. However, these are not the
whole part of the schema. To clarify Turkey just as a “transit country” is not sufficient. In
the mean time, Turkey has become one of the crucial narcotic centers of the world. Every
drug bags, pass through Istanbul and other Turkish cities to the Western Europe this turns
back as a terror, crime organization, violence on the street and loss of government power
in Turkey. Besides, this process continues for decades; drug-violence-degeneration
triangle insidiously prejudice Turkey internally. At that point, drug trucks, passes from
Turkey, should be stopped so as to re-construct order in Turkey, re-gain government
authority by the government itself. In this study we wil focus on PKK terrorism-drug
smuggling connection. Although the classified Turkish, European and American sources
(Stephen R. Barnhart, The New International Terrorism and Political Violence Guide,
Trafford Publishing, 2002, p. 119) and media reports reveal that PKK members control
the European drug cartel and they even use children to sell drugs, the connection is not a
well-studied issue.
Economic Infrastructure of Terrorism
Terrorist organizations are based on two main columns: The first one is
ideological/political base. Terrorist organizations exploit mistakes of states, areas where
there is no state authority; the more these exploitation facilities continue, the more these
organizations grow fast. The second important column terrorist organizations based is the
economic infrastructure. Money is requisited for weapons, explosive materials, daily
needs of terrorists etc. Contrary to general perception, money mostly has not come
314
“directly” from other countries. When other countries want to assist, they prefer utilizing
from “natural ways”; randomly cash money is given directly to the terrorists by foreign
countries. There are four fundamental principles to maintain economic infrastructure of
terror:
- tribute \ blackmailing \ donation,
- robbery,
- narcotic money,
- other illegal revenue.
Among these, since it is relatively easier way and more sustainable, mostly, narcotic
money catches attention. If it is considered that world’s drug market is around 400-500
billion dollars, this amount will not only sustain terrorist organizations but also countries.
The money, circulated in the drug market, is almost equal to the USA’s defense
expenditure in a year and it is approximately over Turkish gross national product. In
Europe, one of the most important regions of the huge market, the PKK, time to time, has
controlled 80 % of the market; so it is not difficult to comprehend how the PKK can
stand for more than two decades. Michael Radu says "Considering the range of PKK drug
trafficking in Europe (Germany, France, Denmark, Romania, Switzerland, Belgium.
Netherlands), the group is wealthy indeed". Radu further argues that the PKK's annual
income from drug trafficking, robberies, extortion, and emigrant and arms smuggling
reached ten millions of dollars in the 1990s (Michael Radu, Dilemmas of Democracy and
Dictatorship, Transaction Publishers, 2006, p. 223). The CNN International confirms Mr.
Radu by underlining the organized crime and drug smuggling business of the PKK: "By
many accounts from inside and outside Turkey, Ocalan is a dogmatic and tyrannical
leader whose organization is involved in drug trafficking, robbery, extortion, arson,
blackmail and money laundering" (Beat Witschi, "Who is Abdullah Ocalan?", CNN,
November 20, 2000, Link 2008 alone the drug income of the PKK was more than 500
million euros. Cagaptay's figure is much more higher than 500 million euros. Cagaptay
claims that 2,5 billion narcotic dollars go to the PKK (Soner Cagaptay, 'Can the PKK
Renounce Violence?', Middle East Quarterly, Winter 2007, pp. 45-52). It is obvious that
the terrorist organization has financed its activities through illegal means and the drug
trafficking has had a great share in this budget (Paige Whaley, Eager, From Freedom
Fighters to Terrosists: Women and Political Violence, London: Ashgate, 2008, p. 175).
PKK Discovers Narcotic Money
When the PKK constituted as a terrorist organization, it did not take it so long to discover
the drug smuggling money. At the beginning of 1980’s, it started to act in both producing
and transportation sectors of illegal drug business. In 1982, the PKK begun to produce
hemp and opium poppy around the Lebanese camps (Baelbek and Hermen) that were
under Syrian control. Ports of Beirut, Sayda, Sur, Miryan, Abdeh and Tripoli were the
main transit points of this transition. Drugs were sent to ports of Greek Cyprus, Greece
and Italy; and from this forwarding, the terrorist organization sustained significant
amount of revenue for the years. It is unfortunate that Syria, Greek Cyprus and Greece
ignored (or supported) the PKK drug business in order to support this terrorist
organization against Turkey. In the beginning of the 1980’s, another considerable role of
the PKK was in the line that comes from Afghanistan-Pakistan-Iran, crosses Turkey and
reach to Europe. As it is known these three countries were called “golden crescent” for
drug smuggling. Behind the ‘Golden Crescent’ Laos – Thailand - Birmania countries are
315
‘Golden Triangle’ for drug producing and smuggling. In other words, most crucial
producer countries are located in the east of Turkey, and Turkey is one of the most
crucial routes for the European drug market. It did not take too long for the PKK
militants to notice how a ‘lucky position’ they had to control drug trafficking between the
East and the West. Terrorists realized the huge wealth, and firstly begun business by
allowing transition and sustaining “security services” for ordinary smugglers. The PKK
"taxed" those who smuggled drugs, arms, and other valuable goods in the 1980s and
1990s (Doğu Ergil, 'The PKK: Partiya Karkeren Kurdistan', in Marianne Heiberg,
Brendan O'Leary and John Tirman (eds.), Terror, Insurgency, and the State: Ending
Protracted Conflicts, University of Pennsylvania Press, 2007, p. 341). During the 1980s it
was not difficult for the PKK to secure international drug transportation in the region
because it was organized almost in every district and villages of eastern Turkey.
When its organizations advanced in Istanbul, other Western big cities and Western
European countries, drug dispatching and distribution has become easier for the PKK.
Especially, over Afghanistan-Iran-Turkey-Eastern Europe-Southern Europe-West Europe
line, tons of morphine, heroin, liquid hashish and other drug materials were transferred
under the PKK control. With the increasing instability in Iraq, Iran-Iraq-Turkey-Western
Europe route became more popular for the drug smuggling. As Michael Rubin pointed
out that different from the KDP and KPU, the PKK still facilitates drug smuggling from
Iran through Iraq and Turkey and into Europe (Michael Rubin, 'The PKK Factor',
National Review, 5 August 2004). The PKK has not only played a significant role in the
East-West route drug transportation but also in the West-East transportation of chemical
goods for processing of raw drug materials in the East. At the end of 1980s, it was
realized that the real money was in the processing business. When raw drug materials
were processed, its price increases geometrically. At that point the PKK, firstly in the
East and Southeast Anatolia, later in different regions of Turkey and in some East
European countries, constructed processing drug laboratories.
PKK Drug Smuggling And The Kurdish Diaspora
In the words of David Romano "once the PKK matured into a larger, more established
movement, it could finance itself via contributions from Kurds in the region and abroad
as well as with support from foreign state powers and involvement in the narcotics trade
and smuggling". (David Romano, The Kurdish Nationalist Movement: Opportunity,
Mobilization, and Identity, Cambridge University Press, 2006, p. 91).
When the PKK reached its one of the political aims by composing a Kurdish diaspora
close to itself in the Western European countries, it became a real boss in the drug
business between Golden Crescent and Western Europe without any serious rival. In
most of the cities in Europe, the PKK had thousands of members and huge sympathizer
network that assist it in drug business. The terrorist organization helped many Kurdish
people to immigrate illegally to Western Europe, and all these people were forced to pay
significant part of their income in their new life. Apart from these so-called donations,
Kurdish immigrants were forced to help the PKK’s drug businesses in Western European
cities. Since there was no second group organized as the PKK did in the East and in the
West, within a short time, the PKK strengthened its power in European drug market in
terms of production, transportation, distribution and marketing. Kurdish children
including 10-15 years old ones became drug seller in front of the pubs, pavilion, and even
around certain schools in many European capitals. Four Kurds were arrested in Milan
316
(Italy) on a TIR truck carrying 100 kg of hidden heroin in 1989. The driver, Nazim Kelo,
told Italian investigators that the heroin had come from the PKK, for whom he had
worked for years.
In 1991, a PKK confessor said that between 1988 and 1990, he carried more than 300 kg
heroin to Europe by his own. According to Interpol, in 1992, the PKK was orchestrating
80 % of the European drug market. This relationship was in the fields of processing,
transportation, securing transportation, distribution, and marketing. With reference to
1992 Interpol data, the number of Kurdish organizations related with drug business was
178; and most of them were under the PKK control or they gave tribute to the PKK. Ikbal
Huseyin Rivzi, Interpol’s chief narcotics officer, explained that the PKK was heavily
evolved in drug trafficking as a means to support terrorism in Turkey. At the same year,
the reports of the Italian police clearly showed that the PKK set up special teams for
international drug business. The United States Department of State Bureau of
International Narcotic Matters, has published a report in 1992, called "International
Narcotics Control Strategy". The report stipulates that the European drug cartel is
controlled by PKK members. Haluk Bahcekapali, a senior Turkish narcotics agent,
argued that "the PKK members were the brains behind the trafficking between Turkey
and Western European countries". (1)
Some of the money acquired from drug trafficking and extortion, goes to the purchase of
firearms and other equipment. According to a report by the British National Service of
Criminal intelligence, the PKK acquired about $75 million from drug smuggling in
Europe In 1993. Further, in 1994 PKK members were arrested by Turkish authorities
while attempting to smuggle 1.5 tons of hashish Into Turkey from one of Turkey's
neighboring countries. German high rank officials also stated that the 75 % of heroin
caught in this country in 1994 was belonging to Kurdish origin Turks. Moreover, 70 % of
drug sale in Germany was made by the PKK. Other sources similarly indicate that the
PKK controlled between 60 % to 70 % of the European illegal drug market in 1994. The
number of the imprisoned PKK members related with drug crimes in Germany was 30 in
1994. In the same year, the amount of the captured PKK drug was nearly 1.6 ton. An
article in a German newspaper (Kölnische Rundschau), dated February 2, 1995 also
reported that a drug trafficking cartel which operates in South America called "Medellin"
had close links with PKK drug dealers who work in Europe. In this connection, 25 PKK
sympathizers were apprehended in Cologne, with 143 kg. of heroin. A 1995 report
prepared by the Drug Enforcement Agency of the US Department of Justice also
emphasized that the PKK is engaged in drug trafficking and money laundering activities
and is well-established in the production of almost all kinds of opium products and their
smuggling. Turkish Interior Minister Nahit Mentese reported in 1993 that security forces
had scored major successes against Kurdish rebel drug-smuggling operations. Over the
year, he said, police had seized 1,054 kilograms of heroin, 2,884 kg of morphine base,
and 23,679 kg of hashish from PKK traffickers.
Turkish Minister added "This terrorist organization gets financial revenues from
smuggling drugs abroad, as it does in Turkey." Columnist Enis Berberoglu, who has
written several books on the subject similarly underlines the connection between the PKK
and drug sumuggling during the early 1990s: "Turkey was deeply involved in drug
smuggling in the mid 1990s. There was a very strong mafia here at that time and the PKK
(the Kurdish rebel group the Kurdistan Workers Party) used to take protection money in
317
return for letting them operate in the east".
The Sputnik Operation
By this way, drug business has become most important revenue of the PKK terrorist
organization. The 1996 UN Narcotic Audit Committee’s Report indicated the reason how
the PKK still stands, as narcotic money. Belgium newspapers in 1996 reported that the
police there believe that the PKK was engaged in drug and arms smuggling, extortion and
other crimes in Europe (Stephen Kinzer, 'Turks, Opposing U.S., Urge Iraq To Take
Control of Kurdish Area', The New York Times, 21 September 1996). During the 1990s
the PKK established so-called NGOs and companies in Western European countries,
notably in the UK, Germany, France and Belgium, to launder and transfer the smuggling
and extortion money. 1997 Sputnik Operation (Belgium) showed how the PKK launders
narcotic and other illegal money. The British and Belgium police together acted
simultaneously on 18 September 1996 and started a large scale operation 'Sputnik'. The
operation aimed the PKK linked organizations and members of the terrorist organisation
under civilian names in the United Kingdom and Belgium (Like London-based Med-TV,
so-called Kurdistan Parliament in exile). Germany and Luxembourg police also made
similar operations against the PKK in their countries. The main juridical foundation of all
these operations was money laundering. The narcotic and other illegal money was being
laundered by the PKK's TV channel and so-called civilian organizations. The operation
revealed that the PKK's TV channel Med-TV had a 350 millions of BF bank account in
Luxembourg. The police reported that the money came from drugs, arms and human
trafficking. In February 1996 a Canadian citizen who had acted on the Med-TV was
jailed in Luxembourg. According to the the Luxembourg police he tried to launder big
amount of money for the PKK organizations for commission (François Haut, 'Kurdish
Extremism and Organized Crime: The Kurdistan Workers Party', Pan European Turkish
Organied Crime Conference, 'THe Way Forward' proceedings, London, March 3-5 1998,
p. 13) The terrorist organization in these years laundered money under the name of
donation or aid to so-called cultural, children, women etc associations in London, Paris,
Brussels and other European cities. This money has been collected in certain accounts;
later, laundered money has been spent for MED TV (now Roj TV), weapons, explosives,
militia training and for other PKK businesses. Another laundering method was jewelry
buying-selling and some other legal investments. In 1997, relationship between the terror
organization and drug smuggling begun to disturb more the Western European countries,
and expalined above with Sputnik and some other operations, terror organization was
forced to take more measures to hide its illegal activities. When risks increased in drug
business, the PKK started a propaganda campaign claiming that it was not in any illegal
drug business. The organization further claimed that these accusations were part of the
Turkish Republic’s ‘propaganda game’ against the PKK. According to the PKK
propaganda, those people who were caught by police had not any relationship with the
PKK. In this regard, the PKK, thanks to its social and so-called cultural organizations,
started a great “No to Drug” campaign in many European countries in 1998. With these
kind of campaigns, as expected it was not possible for the PKK to clear itself in the eyes
of European police and other security forces. However, it shouldn’t be forgotten that
English or French police and judiciary are working within political system, and public
opinion naturally influences their works against the criminals. May be this is the point
that Turkey cannot intercept fully, but the PKK utilizes, perfectly. While Turkey
318
generally perceives all Europe (even the West in general) as a single body, the terror
organization successfully abuses the Western democracies’ weaknesses and the Western
pluralist political and legal structures.
PKK-Linked Drug Smuggling in France, Italy and UK
Similar to the operations in UK, Belgium, Luxembourg and Germany several persons
mostly of Turkish nationalisty, are arrested on October 29, 1996 in Paris suburbs. That
was the end of a 40-millions F-fraud, linked with Belgium, concerning about 150 victims,
completed by weapons and ... narcotics trafficking. The French police in this operation
seized heroin, 6 kg, 20 millions. According to the French investigators who worked on
that case for 18 month, the benefits of all these operations were assigned to the PKK
(Haut, 'Kurdish...', p. 11). Early 1997, the presumed fund-raiser of the PKK for the south
of France was arrested by the French police for having send money to Turkey, allegedly
proceeding from drug trafficking. François Haut, director of the Department for the Study
of the Contemporary Criminal Menace in Paris, argues that the PKK is still responsible
for up to 80 percent of narcotics trafficked into the Parisian suburbs (Soner Cagaptay,
'Can the PKK Renounce Violence?', Middle East Quarterly, Winter 2007, pp. 45-52).
A 1998 report by the Italian Finance Police, SCICO, determined that the PKK is 'directly
involved' in 'international drug-trafficking,' while also earning illicit proceeds from the
'immigrant trade' and the 'systematic levying of 'protection' payments from Turkish
businessmen and workers abroad.' (2) In 1998 the British security service sources
estimated that the PKK was responsible fo at least 40 percent of the heroin sold in the
European Union (The Spectator, 28 November-5 December 1998).
BBC: PKK Controls 80 % of European Drug Market
After capture of Abdullah Ocalan, head of the PKK, and with the dramatic decrease of
clashes in the Anatolian mountains, the organization begun to give more importance to
drug business than before. Between 2004 and 2005, the amount of drug just caught in the
Netherlands was more than 400 kg. With reference to 2005 European data, the PKK is
the primary actor of the illegal European drug trade.
BBC stated that, 80 % of European drug market was Turkish origin (it means Kurdish
origin); and the PKK manages it. The BBC also reports that the number of the PKK
members in British prisons is more than 1000. According to Turkish authorities, the
number of PKK members caught with drug is around 700 between 1984 and 2000. These
numbers clearly stated that the PKK has worked with hundreds of people in each country
on the transition route.
Rand Beers, Assistant Secretary for International Narcotics and Law Enforcement
Affairs, and Francis X. Taylor, Ambassador-At-Large For Counterterrorism, in their joint
testimony before the U.S. Senate Committee on the Judiciary Subcommittee on
Technology, Terrorism and Government Information (13 March 2002) named the PKK
the most important terrorist organisation in Europe which makes drug business and said
"The PKK "taxes" ethnic Kurdish drug traffickers and individual cells traffic heroin to
support their operations."
German Police: PKK is Involved in Drug Trafficking
Germany banned the PKK in 1993 after it carried out a campaign of fire-bombings on
Turkish and German institutions in Berlin however the German intelligence services
estimate that the PKK network in Germany has thousands of members. For the PKK,
Germany is more important than the other European countries in financing its terrorist
319
activities and Turkey made pressure to Germany for active combatting terrorism's
financial sources. As a result of these efforts, in recent years, a number of PKK members
have been arrested in Germany for securing financing for the group. According to
German police sources, the PKK is also involved in drug trafficking in Germany. "Police
have confirmed that several investigations have revealed a link between the PKK and
drug dealers" ("Germany Reports PKK Funding as Tensions Rise on Iraq Border",
Deutsche Welle, 2 November 2007).
In 2007 many PKK members who involved in drug dealing were arrested in European
countries, especially in the transit countries for drugs coming from the east. On 19
December 2007 for example three fundraisers for the PKK who involved in drug dealing
were arrested in Bucharest, capital of Romania. The Romanian public prosecutor
declared that the PKK members organized the transportation of 58 kg of heroin, destined
for the Netherlands.
The suspects - two from Turkey and one from Syria, were all Romanian residents. They
belonged to a trafficking ring which extended into Ukraine ('Romania Arrests 'PKK
Fundraisers', Romania News Watch, 23 December 2007). As a matter of fact that
Romania (with Bulgaria) has always been a vital transit route for the PKK drug
smuggling from Turkey to Europe. The country has always been important for the arms
transfers from Western Europe to Turkey as well (İlhan Uzgel, 'The Balkans: Turkey's
Stabilizing Role', in Barry Rubin and Kemal Kirişçi (eds.), Turkey in World Politics, An
Emerging Multiregional Power, Lynne Rienner Publishers, 2001, p. 59). Marko
Hajdinjak claims that the Kurdish smugglers with the Arabs have controlled the heroin
trade in the Balkans and they havedominated the Romanian route. Hajdinjak says
"Indications exist that the profits from Kurdish-run heroin trade are used for financing the
Kurdistan Workers’ Party (PKK)". (Marko Hajdinjak, The Yugoslav Wars and The
Development of Regional Criminal Networks in the Balkans, Sofia: Center for the Study
of Democracy, 2002, p. 20).
US Labels PKK Drug Smuggling Kingpin
In 2008, the US labeled the PKK drug smuggling kingpin. The PKK as well as a Turkish
national and other foreign organizations and individuals were put on a US list of
suspected drug traffickers in June 2008. The US Foreign Narcotics Kingpin Desig-nation
Act, which became law in December 1999, targets major foreign narcotics traffickers,
their organizations and operatives worldwide.The terrorist organization will be denied
access to the US financial system and all trade transactions involving US companies and
individuals under the Foreign Narcotics Kingpin Designation Act, according to a
statement released by the White House. Gordon Johndroe, a spokesman for the National
Security Council said "Now that the PKK has been designated under the kingpin act, the
penalties for doing business with them are much higher... We also now have the authority
to target and designate other PKK entities and associates for narcotics activity. Before,
we were limited to this group's terror activities." President George W. Bush described the
group as a "common enemy" during the November Summit with Prime Minister Recep
Tayyip Erdoğan. US experts and administration officials believe that the PKK has taken
advantage of Turkey's strategic location between the poppy fields of Central Asia and the
vast market of Europe and has used drug smuggling to finance its activities since as early
as the 1980s.
320
The terrorist group both "taxed" the drug traffickers and directly engaged in trafficking,
according to the American narcotics specialists.
(3) Jane Intelligence Review in 2008 argued that the drug money with diaspora funding
increased in the PKK financial sources: "PKK financing has shifted from state support to
self-financing through diaspora funding and drug trafficking". (4)According to the Jane
Intelligence Review the war in Iraq have further facilitated the narcotic source of income
for the terrorist organization as substantial amounts of heroin formerly transiting Iran are
now re-routed through Iraq. The journal says "While the PKK's involvement in drug
trafficking is clear, its exact extent and nature is not". Similarly Prof. Dr. Norman Stone
confirms in his article in the Spectator that the PKK is in the drug smuggling business: "it
kills innocents, it deals in drugs".
(5) PKK Mafia Network and Narcotic Money
When all these data is considered, it won’t be so extreme to say that the PKK has
developed by narcotic money.Lieutenant General Ergin Saygun, deputy chief of the
Turkish General Staff, recently estimated that 50 to 60 percent of the PKK’s annual
revenues is derived from drug trafficking (6). As The Spectator, British weekly
magazine, puts it "the PKK has financed its war against Turkey by extortion and the sale
of heroin" (The Spectator", 28 November-5 December 1998) In the mean time, a new
kind of mafia emerged in drug, smuggling, and tribute \ robbery areas. This formation,
can be called as ‘PKK mafia’, has developed its own mentality beyond terrorist
organization’s classic mentality. In course of time, participations begun to this network
from outside; and a network, stretched to three continents (Europe, Asia and Africa), was
created. Surprisingly, some organizations, defined themselves on the contrary to the
PKK, have also begun to participate to this PKK mafia network. Thus Turkist or Kurdist
ideologies curtailed the real intentions and the drug money undermined public order and
state authority in the country. So as to secure drug production, processing, transportation,
distribution and marketing; this network has reflected itself differently and spreaded even
inside the state body. The criticism made by European countries in the mid-1990s, was
about the fact that drug bosses had friends in the Turkish cabinets.
Although these claims seem to be more exaggerated, it is so remarkable that
organizations that reflect themselves to public under different ideology and utilize from
state power in some cases, has been cooperating with the PKK. It can be argued that the
Deep State problem, extreme nationalisms and terrorism in Turkey have been financed by
the drug smuggling money for the years.
Children As Drug Seller in the PKK Narcotic Network
Apart from taxing narcotics traffickers, direct production, refining and transportation the
PKK became a significant seller in Euro drug business in 1990s. In order to escape the
strict European laws, the terrorist organisation has used children and teenagers. Children
and teenagers who have been moving drugs for the Kurdish terrorists have been caught
throughout Europe on numerous occasions in the 1990s and as recently as 2000. For
example in Hamburg German police arrested a group of 11 year-old Kurdish children
who had been smuggled into Germany from Turkey in order to sell drugs for the PKK
("Other people's wars: A Review of Overseas Terrorism in Canada", The Mackenzie
Institute, Link
* Conclusion
In brief, illegal drug trade is the most crucial financial source of terror and collapse of
321
legal state in Turkey. In order to end terror, if Turkey succeeds in ending drug smuggling
it will get more effective solutions than bombing Kandil Mountain. Turkey on the one
hand must eliminate the areas that are exploited by terrorists and extremists, and at the
same time it must destroy financial infrastructure of terror and other crimes by cutting
drug smuggling. Otherwise, the Turks will continue to live with the problems like
robbery in streets of Istanbul, terror in mountains of southeast Anatolia and political
assassinations in most sensitive times. We should also note that Turkey desperately needs
immediate help of the European countries in its combat against terrorism. The ‘monster’
so big for Turkey, and the Turks cannot overcome the problem without the EU. At the
same time, the drug smuggling mainly targets the youth of the Western European
countries, and the EU cannot stop the illegal drug problem without a real co-operation
with Turkey.
--Notes
(1) Alan Cowell, "Heroin Pouring Through Porous European Borders", The New York
Times, 9 February 1993.
(2) Michele Steinberg, "PKK Terrorists Named `Drug Kingpins', Nations Move Against
Narcoterrorism", Link "US labels PKK drug smuggling kingpin", Today's Zaman, 2 June
2008; "US imposes sanctions on PKK group", BBC News, 30 May 2008, Link 'Kurds
and Pay - Examining PKK Financing', Jane's Intelligence Review, 13 March 2008.
(5) Norman Stone, "Turkey is right to fight for an end to the PKK", The Spectator, 27
October 2007.
(6) Turkish Daily News, March 13.
Also See: Frank Hyland, "Turkey’s Multifaceted Anti-PKK Strategy Continues to
Unfold", Terrorism Monitor, Volume 6, Issue 12 (June 12, 2008): Michele Steinberg,
"PKK Terrorists Named `Drug Kingpins'; Nations Move Against Narcoterrorism",
Executive Intelligence Review, August 1, 2008; "PKK uses drugs to finance its terrorist
activities", Journakl of Turkish Weekly, 11 April 2006; "Germany Reports PKK Funding
as Tensions Rise on Iraq Border", Deutsche Welle, 02 November 2007; Michael Rubin,
'The PKK Factor', National Review, 5 August 2004
-------------------------------------------------------------------------------------------------------------------Turkey expects massive PKK returns from Iraq's Makhmour camp
Friday, 20 November 2009 11:13
WORLD BOLLETIN
--------------------------------------Turkish interior minister said around 11,000 people lived in Makhmour camp.
Turkish, Iraqi and U.S. officials will get together as part of a tripartite mechanism in Iraq
in mid-December to discuss homecoming of members of the PKK from the Makhmour
camp, Turkish interior minister said on Thursday.
Besir Atalay, who spoke to reporters after his talks in Moscow, gave information about
the Turkish government's democratic initiative.
Atalay said that Turkey would focus on Makhmour camp at this stage of efforts within
government's democratic initiative and that the Turkish government planned to build a
322
place --probably a complex of prefabricated houses near the southeastern Habur border
gate-- for those who were expected to return from the camp located in the north of Iraq.
Around 11,000 people lived in Makhmour camp, Atalay said, adding that majority of the
population in the camp was comprised of families.
"I think more than 50 percent of them would return to Turkey," Atalay said. "They have
villages and houses (in Turkey). They have their own places. They have left their places
and gone. They will re-settle in those places. They have families and relatives."
The Turkish government did not expect PKK members living Europe to return home,
Atalay said. "We do not have any plans about homecoming from Europe," he said.
Atalay also said that the government was working on a new institution on fight against
discrimination and a bill on human rights, adding that those bills would soon be sent to
the parliament for approval.
----------------------------------------------------------------------------------------------------------------Other Political Issues
AK Party wins critical local elections in Yusufça
Todays Zaman
-------------------------------------The mayoral election in Yusufça, a town in Burdur’s Gölhisar district, has resulted in the
victory of Yılmaz Akkaş, the Justice and Development Party (AK Party) candidate, who
received 587 of 1,310 votes and took the post for the third time.
The election was viewed as a report card of the government’s performance in the last
eight months following the most recent local elections and was also seen as a litmus test
of people’s response to the government’s democratic initiative,
The prime minister phoned the victorious mayor to congratulate him on the election
results and said that Akkaş’s triumph sent a good message to those who awaited a sign
from Yusufça, a clear reference to Republican People’s Party (CHP) leader Deniz
Baykal’s remarks urging voters in Yusufça to react to the democratic initiative by not
casting votes for AK Party.
The new mayor was followed in votes by Felicity Party (SP) candidate Bekir Akyel and
Kadir Tavas from the CHP.
Many ministers and high-ranking party officials rushed to the town to prevent an AK
Party defeat in the election. Ministers Ertuğrul Günay, Selma Aliye Kavaf, Veysel Eroğlu
and Deputy Prime Minister Bülent Arınç were among those who paid visits. Kemal
Kılıçdaroğlu, who was the CHP candidate for the İstanbul metropolitan municipality, also
visited the town to help his party’s members in their campaign.
The voters in Yusufça went to the polls eight months after the local elections held in
Turkey due to the change in Yusufça’s status. It had been a neighborhood but was
incorporated as a town after a recent court ruling. Before the local election this year, the
government issued a decree that towns with populations of less than 2,000 must be
incorporated into more populated nearby towns. After that decision, which relegated
Yusufça to a neighborhood of a nearby town, the residents of Yusufça appealed the ruling
and brought the issue to court. The Isparta Regional Administrative Court ruled in the
town’s favor on May 1 and Yusufça reincorporated as an independent town. The
Supreme Election Board (YSK) decided on Aug. 18 to hold an election in the town.
323
--------------------------------------------------------------------------------------------------------------------
US follows Ergenekon trial, backs democratization process
Saturday 14,November
TODAYSZAMAN
----------------------------------------------------
A senior US official said on Thursday that the United States is
closely monitoring developments in the Ergenekon case
Philip Gordon, the assistant secretary of state for Europe and Eurasian affairs, told
reporters that the Obama administration is “very interested in things that dominate the
headlines in Turkey.” Though he declined to comment on the specifics of the case, saying
that “when you have judicial and internal political developments, they are not for us [to
comment on],” Gordon said, “We watch it closely because it has an impact on one of our
key partners.”
Commenting on the Turkish government’s democratization initiative to solve a longstanding Kurdish problem in the country, Gordon said the US administration supports the
process. “We believe it will increase internal stability,” he said. “It [the initiative] does
seem to be an opportunity to not only fully integrate all of Turkey’s citizens but to get
beyond the conflict that has been devastating Turkey for many years. … Obviously that is
something the US supports.”
Gordon acknowledged that the issue is very controversial in Turkey and said the US
steers clear of interference because the issue is an internal matter. “It is for Turks to
decide,” he said. “We are not influencing it [the process].” He also dismissed conspiracy
theories that the initiative is in fact a US plan and the Turkish government is simply
implementing what Washington dictates. “In general, the role of the US is often
exaggerated. I wish we were as influential as people tried to portray us,” he said.
‘Turkey not changing axis’
The US assistant secretary of state also dismissed rumors that Turkey is moving away
from the West. “I think talk of a change of axis is a very significant exaggeration of what
is going on in Turkey,” he said. “We are neither surprised nor worried about Turkey’s
engagement in the East.”
Gordon said Turkey has legitimate reasons for engaging with neighbors in the East.
“Turkey remains a country with strong and close ties with the West; it’s certainly a close
partner to us,” he added.
During his first official visit to Turkey since he was confirmed by the US Senate, Gordon
has discussed a range of issues with Turkish officials in Ankara. He listed those issues as
Afghanistan, the Iranian nuclear program, Iraq, Middle East peace, Cyprus, normalization
with Armenia and energy. “The prime minister and president’s agenda will bear all of
324
these critical issues I mention and some more,” he said, signaling that he was in Ankara
for advanced consultations ahead of Turkish Prime Minister Recep Tayyip Erdoğan’s
upcoming visit to Washington in early December.
Gordon said the US would welcome Turkey’s support in getting low-enriched uranium
from Iran. “If Iran is prepared to send it to Turkey, that is something we would be happy
to explore because what matters to us is to get the low-enriched uranium out of Iran so
that Iran would not have the opportunity to use it for a nuclear weapons program. Turkey
would be a secure place, we believe, and we welcome Turkish support,” he added.
Mohamed ElBaradei, the director-general of the Vienna-based International Atomic
Energy Agency (IAEA), said he officially proposed Turkey as a third-country destination
after Iran failed to agree to a Western plan for its enriched uranium to be sent to Russia
for further enrichment to reactor-grade fuel. Tehran has yet to give a full official reply to
the proposal, which was drafted three weeks ago after consultations with Iran, France,
Russia and the US.
Gordon acknowledged that the US and Turkey do not see eye-to-eye when it comes to
dealing with Iran. “On Iran, we do believe it is time for the international community to be
sticking to one voice,” he said. “That is why we have open dialogue with our Turkish
friends.” He noted that the Iranian problem requires international cooperation, and said,
“We believe that Turkey shares our concerns about the Iranian nuclear weapons
program.”
The US diplomat remarked that Iran needs to provide reassurances to the international
community to allay concerns over its suspected nuclear weapons program and warned
that engagement and dialogue can’t go on forever and there will be consequences if Iran
does not cooperate. He declined to specify, however, what those consequences will be.
There are some measures already in place against Iran as adopted by the UN Security
Council resolutions. “Further ones we have not spelled out in detail because we do not
want go there. We want the engagement to work, and we want to succeed in dialogue,”
Gordon said.
He called the signing of protocols between Turkey and Armenia a historic process that
will benefit both sides immensely. He dismissed the linking of ratification in the Turkish
Parliament to the resolution of the Nagorno-Karabakh conflict. “We think that
normalization is important. It should not be linked to anything else,” he said, stressing,
however, that the US is working hard to solve the Nagorno-Karabakh issue and is
actively engaged in bringing about reconciliation between Armenia and Azerbaijan.
------------------------------------------------------------------------------------------------------------Col. Çiçek interrogated about figures behind action plan
Todays Zaman
-----------------------------------------------------------Col. Dursun Çiçek, who was arrested on Wednesday for drafting an action plan to destroy
the ruling party, was interrogated by civilian prosecutors about the members of the
military who gave him the order to prepare the plan.
The colonel arrived at the Beşiktaş courthouse in İstanbul on Wednesday to testify to
prosecutors conducting the ongoing investigation into a criminal organization known as
Ergenekon. He was interrogated for approximately five hours about his role in the action
325
plan and other figures behind the plan. Çiçek is believed to have prepared a document
that details a Turkish Armed Forces (TSK) plan to destroy the reputation of the Justice
and Development Party (AK Party) and the faith-based Gülen movement.
“You indicated that the signature on the Action Plan to Fight Reactionaryism, a
photocopy of which was seized at the office of Ergenekon suspect Serdar Öztürk, does
not belong to you. However, a forensic examination established that the signature is a
product of your hand. From whom did you receive an order to prepare such a plan and
who coordinated the implementation of the plan?” the colonel was reportedly asked.
Çiçek, however, denied knowledge of the action plan and responsibility for the signature
on the document.
The colonel was also questioned about an alleged smear campaign directed at the
Education Ministry in which news stories were fabricated reporting that children were
pressured to pray at state schools. Prosecutors asked Çiçek whether he directed TV
stations to air such news and whether he had any links with Star TV, its anchorman Uğur
Dündar or the Hürriyet daily.
The colonel was also asked about his relationship with Ergin Geldikaya, the security
director of Reina nightclub, who was detained in May for suspected ties with the
Ergenekon terrorist organization. Ergenekon is accused of plotting to topple the
government. Dozens of suspected members of Ergenekon, including military officers,
journalists and businessmen, are currently under arrest.
Çiçek also faced a question about a TSK psychological warfare program against civilian
groups. The program was first revealed early this month after an unnamed military officer
claimed that the armed forces established 42 Web sites to back its fight against civilian
groups it termed “reactionary,” “separatist,” “pro-government” or “anti-TSK.”
The TSK also monitored the activities of more than 400 Turkish and foreign language
Web sites. In line with questions on the armed forces’ program, the colonel was
interrogated over the activities of the Third Information Support Unit.
Ergenekon prosecutors asked Çiçek whether evidence related to the notorious action plan
was destroyed at the General Staff after the exposure of the plan. The unnamed military
officer had claimed that members of the military destroyed more than 40 sacks of
documents related to the plan after it made its way into the news.
Another question directed at the colonel was regarding four failed military coup attempts.
The attempts were codenamed Ayışığı (Moonlight), Sarıkız (Blonde Girl), Yakamoz (Sea
Sparkle) and Eldiven (Glove).
One last question was over a note penned by Çiçek that was seized in the office of the
security chief of Ulusal TV, Ufuk Akkaya. The chief was detained last Saturday as part
of the Ergenekon case and was accused of illegally wiretapping the prime minister’s
telephone. In the note, Çiçek wrote: “I knew I would be arrested. So did the General
Staff. … However, they did not calculate that it [investigation] would extend to the
headquarters [the General Staff]. [Chief of General Staff Gen.] İlker Başbuğ is aware of
everything. The July decree on the appointment of judges and prosecutors is very
important. Gen. Başbuğ had meetings with members of the high judiciary. There may be
a change in Ergenekon prosecutors. Gen. Başbuğ will appoint Gen. [Hasan] Iğsız to the
1st Army Corps Command. Iğsız will follow developments in the Ergenekon case.” The
prosecutors interrogated Çiçek about the information in the note.
326
--------------------------------------------------------------------------------------------------------------------
Poll: Military plot damaged public trust in TSK
TIME TURK
-----------------------------------------Despite the Turkish Armed Forces' (TSK) frequent recent emphasis on its commitment to
democracy and the rule of law, a considerable portion of the Turkish nation does not
believe the idea that the TSK does not shelter officers involved in pro-coup and ill
The Ankara-based MetroPOLL Strategic and Social Research Center conducted a survey
on the political situation in Turkey to get an idea of what the public thinks about a
recently exposed military plot to undermine the ruling Justice and Development Party
(AK Party) and the faith-based Gülen movement as well as the government's ongoing
efforts to settle the Kurdish issue.
One of the questions in the survey was on participants' ideas about to what extent the
TSK was committed to democracy and the rule of law in Turkey. More than a third of
participants in the survey said they did not believe that the TSK doesn't shelter pro-coup
officers, despite the General Staff's pledges to the contrary, which is a sign of the loss of
the TSK's credibility in the eyes of the public in Turkey, where trust in the military used
to be up to 80 percent among the public in the past. The Turkish military has recently
become the center of mounting criticism over a military action plan, bearing the genuine
signature of Col. Dursun Çiçek.
The plot details a plan to destroy the image of the government and the Gülen movement
in the eyes of the public, to play down the Ergenekon investigation and to gather support
for members of the military arrested as part of the investigation into Ergenekon, a
clandestine organization plotting to overthrow the government. The plot, called the
Action Plan to Fight Reactionaryism, made its way into the media in early June. The
General Staff, however, denied possession of the plan, saying the document was merely a
photocopied version. An unnamed military officer mailed the original copy to Ergenekon
prosecutors last month, which eliminated all suspicion surrounding the authenticity of the
document. Since June, Chief of General Staff Gen. İlker Başbuğ has reiterated that his
military had always been deeply loyal to democracy and the rule of law and the TSK does
not shelter junta groups. However, according to the latest MetroPOLL survey almost 37
percent of the participants said they do not believe that, while 52 percent of the
participants admitted they still believed the military was loyal to democracy and the rule
of law.
In the poll, 33 percent of participants also said their confidence in the TSK has been
damaged following the appearance of the military plot, while 42 percent said there has
been no change in their confidence in the TSK and the chief of General Staff.
Furthermore, 31.7 percent of the respondents said the chief of General Staff should resign
while 50 percent said he should remain in his post.
Reflections of democratic initiative
Another issue respondents were asked about was the ruling AK Party’s democratic
initiative to bring a solution to the country’s long-standing Kurdish issue. Asked whether
327
they support the initiative process or not, 51.6 percent said they opposed it while 35.4
said they supported it. As for the question of whether they found the government
successful in managing the initiative process, 59 percent replied “no,” while 28 percent
said “yes.” Professor Özer Sencar, the owner of MetroPOLL, said the poll results on the
initiative revealed that the government had not explained its plans to settle the issue
sufficiently to the public yet, while the opposition was successful in making its position
heard louder. Public opinion about the government and Prime Minister Recep Tayyip
Erdoğan seems to have been negatively influenced by the democratic initiative process,
according to poll results. As for the question of whether their view of the government has
been negatively or positively influenced since the initiative was announced, 56 percent of
the respondents said negatively and 38 percent said positively. While 30 percent of AK
Party supporters also said their views about the government and the prime minister have
been affected negatively, 77 percent of pro-Kurdish Democratic Society Party (DTP)
supporters said they look the government more positively with the initiative.
As Sancar says, the enthusiastic reception of Kurdistan Workers’ Party (PKK) members
while returning to Turkey last month also negatively affected public opinion on the
initiative. According to the poll, 93.9 percent of the respondents said they found the
enthusiastic and joyous reception of PKK members by DTP supporters and others wrong.
According to the poll, while 35 percent of the respondents said they support the stance of
Republican People’s Party (CHP) leader Deniz Baykal, who strongly opposes the
initiative on the grounds that it would lead to separation in the country, it is noteworthy
that 23 percent of those who said they voted for the CHP in the latest local elections
disagree with Baykal.
When respondents were asked for which party they would vote if the general elections
were held today, 32.2 percent said they would vote for the AK Party, a figure lower than
the 38.3 percent of the vote the party received in the March 29 local elections. While 23.1
percent said they would vote for the CHP, 18.4 percent said they would vote for the
Nationalist Movement Party (MHP).
------------------------------------------------------------------------------------------------------------------Plot colonel Çiçek’s release unlawful, say prominent jurists
Todays Zaman
------------------------------------------Col. Çiçek was released less than two days after his arrest on charges of membership in
Ergenekon.
The release of a colonel on Friday, 44 hours after being arrested on charges of
membership in Ergenekon -- a clandestine gang charged with plotting to overthrow the
government -- has created great resentment among jurists, with a majority of those in the
legal profession saying the release was unlawful.
Col. Dursun Çiçek, whose signature appears on a military document titled the Action
Plan to Fight Reactionaryism that details a plan to undermine the ruling Justice and
Development Party (AK Party), was arrested for the first time in the investigation into
coup plotting officers in the military on July 18, but was released the next day on the
grounds that the original copy of the Action Plan was not available. He was arrested
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again last week when prosecutors conducting the Ergenekon investigation obtained the
original copy of the document with Çiçek's “wet signature.”
However, he was released after a brief detention, with the İstanbul 9th Criminal Court
citing its reason as “the suspect having no possibility of obscuring evidence, and has a
permanent address where he can be found,” under Article 100 of the Code on Criminal
Procedure (CMK). However, the same article -- which allows for the release of
individuals if they meet the conditions of not having the ability to obscure evidence and
having a permanent residence where they can easily be found -- also states in its second
paragraph that these reasons alone are not good enough for release in crimes against
constitutional order.
According to former Prosecutor Gültekin Avcı, such practices might encourage terrorist
organizations. Avcı says: “Such a ruling to release him while all of the conditions for
arrest laid out in the CMK are there is very surprising. The decision is a very serious
disappointment. It cannot legally be defended. The judicial mechanism that has ruled this
release decision actually paves the way for members of all terrorist organizations to walk
free. If this is referred to as a precedent by other courts, this will mean that people will
never be punished because of such documents and their statements in legally wiretapped
phone conversations. The judges who made this ruling were appointed recently by the
Supreme Council of Judges and Prosecutors [HSYK]. It is also interesting that the ruling
comes one day after HSYK Deputy Chairman Kadir Özbek made the statement that the
judiciary is now on defense.”
Another former prosecutor, Reşat Petek, said Çiçek’s release for the second time was
clearly indicative of a settling of accounts going on inside the judiciary. “As it is publicly
known, a coup plot aiming to destroy the rule of law and democracy was acquired. A
forensic report showed that this document is authentic. According to the law, a person
who stands accused based on such evidence should remain under arrest. The HSYK
deputy chairman who sits at the top of the judicial hierarchy has given orders to the
judges. This has created the impression that the judiciary is facing a very serious
interference. Nobody, neither the justice minister nor the deputy chairman of the HSYK
or the head of the Supreme Court of Appeals can give orders to independent judges.
There is material evidence there; this is why he was arrested in the first place.”
Ali Aydın, the head of the Kayseri Bar Association, commented, saying: “Courts are
seriously losing credibility. This is in no way a decision inline with the law. This is a very
unfortunate ruling.” Süleyman Gürkök, the head of the Anatolia Law Association said:
“The type of crime here is very important. Dursun Çiçek was arrested on charges of
terrorism. The prosecution in this investigation claims that the crime was not committed
by a single person and that this crime was committed against the majority of the society.
This ruling is highly suspicious.” The head of the Association of Jurists, Kamil Uğur
Yaralı, said an officer facing such a serious accusation should not have been released.
“This will destroy the trust which segments that have been targeted by the action plan
have in the judiciary.”
Civil society protests
Public protests also took place on Saturday against Çiçek’s release. A group of 50
individuals who gathered in front of the İstanbul Courthouse in Beşiktaş held up signs
reading, “How did the wet signature dry up in two days?” questioning Çiçek’s
controversial release. A spokesperson for the group said Turkey has seen examples of the
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General Staff giving briefings to judiciary members in the past. “We have always been
against such intervention in the judiciary by the General Staff and we always will be.”
Meanwhile, the General Staff yesterday released a statement denying allegations made by
some media organizations that Çiçek had lunch with the force commanders at the General
Staff Headquarters on Nov. 10.
All in all, 30 people who are currently on active duty in the military have been arrested so
far for involvement in the Ergenekon organization. Five of these have been released.
Currently, 25 officers on active duty are under arrest as suspected members of
Ergenekon.
----------------------------------------------------------------------------------------------------------------
Third letter exposes further military plans against nation
Todays Zaman
---------------------------------------------A third letter mailed to civilian prosecutors in İstanbul by a military officer has revealed
that the Turkish Armed Forces (TSK) had more plans to destroy the Justice and
Development Party (AK Party) government and give a new shape to society.
The officer, who refused to disclose his identity, also attached a CD to his letter, which
included 590 folders of confidential military documents. In his letter, the officer defined
himself as “among a team that examined computers at the Information Support Unit [of
the General Staff] as part of a military investigation launched into a military plot of Col.
Dursun Çiçek.”
According to the officer, military prosecutors did not give enough time to the team to
search 14 hard drives at the unit. “Fourteen hard drives from the computers at the
Information Support Unit were unplugged and searched. Those computers were requested
back after a superficial search in a day. It was impossible to search 14 hard drives in a
day even if the search only includes getting a snapshot of the disks. Only keyword
searches were conducted on the documents in the hard drives. Neither deleted files nor
encrypted files were searched,” read the letter.
The officer was referring to a military examination of computers at the General Staff’s
Information Support Unit, launched after a plot believed to have been drafted by Col.
Çiçek made its way into the media in June. The plot included TSK plans to undermine
the power of the AK Party and the faith-based Gülen movement.
Çiçek was arrested last week for suspected membership in a clandestine organization, but
was released after a brief detention. He was also arrested and released in July. In the
meantime, six members of the military were brought to the Beşiktaş courthouse yesterday
to testify as part of the plot probe.
The team was subjected to psychological pressure by Col. Sedat Özüer, who also works
for the Information Support Unit and was commissioned by the investigation team
managers during the search of the hard drives, according to the officer. “The official
documents were stored in a main server at the command. I knew the files in the server
were searched four to five days later after the incident. Of course, after the required
clean-up was done.”
330
The officer also claimed that the notebook computer allotted to Col. Çiçek was
investigated four or five days after the incident. “During this investigation, some file
names caught my attention, and I tried to recover some deleted files from some hard
drives. I copied the files which I was able to recover.
However, I could not open some files. Although I could not find the file which was
signed by Col. Çiçek, I saw there were many works of the same kind. … I am sending
you the copies of those documents in a CD,” he said.
He sent the copies to civilian prosecutors conducting an investigation into a criminal
organization known as Ergenekon, President Abdullah Gül, Prime Minister Recep Tayyip
Erdoğan, the main opposition Republican People’s Party (CHP) leader Deniz Baykal and
the Nationalist Movement Party (MHP) leader Devlet Bahçeli. Erdoğan, however, said on
Monday that he had not received such a letter or CD.
The officer said he decided to share the documents with the Ergenekon prosecutors as he
was afraid to share them with his superiors. “I did not mention my discoveries to my
superiors because I was afraid. I was told to look for the document that is believed to
have been drafted by Col. Çiçek. I did not share my discoveries with anyone till now out
of fear that they would put pressure on me. I believe it would be more appropriate for you
to examine these documents,” he noted.
Sunday’s letter was the third of its kind. Another unnamed military officer sent two other
letters to Ergenekon prosecutors in October and early November. In his first letter, the
officer mailed the original of Col. Çiçek’s military plot, and mentioned TSK activities
aimed at monitoring a large number of Web sites and their method of categorizing
visitors to those sites on the basis of their political and religious views in the second one.
The officer also called on all members of the military to share documents they had with
the public.
The third letter sparked a huge public outcry, with coup opponents taking to the streets on
Monday in İzmir. The group, affiliated with a coalition known as “70 Million Steps
Against Coups” complained that the claims put forward in the three letters by unnamed
military officers had remained uninvestigated.
“All those who plotted to overthrow an elected government, destroy the Democratic
Society Party [DTP,] foment chaos among Alevis and Sunnis, and set up the necessary
atmosphere for a military coup are still on duty,” stated the group.
Akın Birdal, a pro-Kurdish Democratic Society Party (DTP) deputy, said the armed
forces’ plots were an extension of a military mindset to undermine the credibility and
power of all groups, which stand as opponents to the TSK.
“In all plots, the TSK aims propaganda against groups or institutions which do not stand
on the same side or line as themselves. This has been the case since the first plot was
revealed in 1998. The latest plot is an extension of this mindset,” Birdal noted.
General Staff categorized Cabinet members, Erdoğan’s advisors
Two documents titled “Intelligence Information about Individuals [Personal
Intelligence]” and “Some Individuals” included on the officer’s CD reveal that the
Information Support Unit of the General Staff categorized members of the Cabinet and
advisors to Prime Minister Erdoğan in accordance with their backgrounds and ideological
tendencies.
Economy Minister Ali Babacan, State Minister and chief EU negotiator Egemen Bağış,
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aide to Erdoğan Cüneyd Zapsu, aide to Erdoğan and Adana deputy Ömer Çelik and
Foreign Minister Ahmet Davutoğlu were among the names on which the General Staff
had collected information.
-------------------------------------------------------------------------------------------------------------------
Newspapers fabricated reports in line with military plot
18 November 2009 11:0
Todays Zaman
--------------------------------------------------------A plan by the Turkish Armed Forces (TSK) to weaken public support for the governing
Justice and Development Party (AK Party) and to give a new shape to society has already
been implemented, recent reports in some newspapers have suggested, according to th
The plan was exposed on Sunday with the emergence of a third letter by an unnamed
military officer. The officer sent 590 folders of confidential military documents in a CD
to civilian prosecutors in İstanbul, which revealed the TSK plan against the government
and the nation. One of the plans suggested that the nation would be conditioned against
the threat of “reactionaryism” through news reports. On a regular basis, newspapers
would feature provocative news with such headlines as “Reactionary capital defrauds the
public,” “Sect member father locks daughter at home,” “Reactionary family marries
young daughter to old man” and “Money collected from religious group sent to sheik;
sheik spends it on luxurious holiday.” The newspaper articles were almost a reproduction
and implementation of a TSK plan which suggested that newspaper reports be written
about the “luxurious” and “anti-Islam” lives led by prominent Muslim figures.
According to Star, some newspapers started to feature reports, mentioning the threat of
approaching reactionaryism on their front pages in line with the plan. The Hürriyet daily,
for example, wrote on April 24, 2008 that the leader of the İsmailağa religious
community, Mahmut Hoca, bought two villas in the Beykoz neighborhood in İstanbul.
Because of this, chador-wearing women started to congregate in Beykoz streets, added
the daily. On Jan. 21, 2008, the Radikal daily claimed in a report that one of the rooms on
the first floor of the Erkan Avcı Anadolu Technical High School was being used as a
masjid -- a small mosque -- where students and teachers prayed together.
The Milliyet daily wrote on Nov. 24, 2007 that students at Amasya Anadolu Vocational
High School had to pretend as if they were observing the Muslim fast during Ramadan
out of fear that their grades would be lowered by their teachers if they learned that they
were not fasting at all. “We are Alevis. We fast in a different way [from Sunni Muslims].
I told the dormitory director that my daughter underwent an operation and that she was
not able to fast.
The director, however, said fasting would not harm the girl’s health and urged her to
fast,” the daily reported a father of a student at the school as saying. The claims were
immediately denied by the school administration.
The reports were in line with heated debates over the likelihood of Turkey turning into
another Malaysia which began after the prospect of allowing headscarf-wearing students
onto university campuses. Opponents of the lifting of a headscarf ban claimed that
allowing covered students on campuses would force other girls to cover their heads.
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Some sociologists called that probability “neighborhood pressure” or “peer pressure,”
which coerces people to adjust their behavior according to that of others.
On Dec. 23, 2007, the Cumhuriyet newspaper claimed that the greatest danger looming
on the horizon for Turkey was the country becoming an “Arabian-like state” rather than
becoming a “religious society.” The claim was put forward by Şahin Filiz, an academic
on the faculty of theology of Selçuk University.
According to the Star report, the dailies had focused earlier on fabricated news against
Kombassan Holding, labeled as “green capital” because it had many Muslim
shareholders. Cumhuriyet claimed on Jan. 4, 2004 that one of the shareholders, Ahmet
Kadayıfçı, was defrauded of TL 60,000 by the holding. Kadayıfçı was planning to spend
the money on the treatment of his child, who was fighting leukemia. On May 23, 2004,
Hürriyet alleged that another shareholder of the holding, Hanifi Doğan, was defrauded of
550,000 Deutsche marks and had staged a demonstration in front of the Justice Ministry.
The reports were in line with a TSK plan to urge newspapers to produce news about fraud
committed by green capital companies.
Other reports claimed that the number of headscarf-wearing women has been on the rise
for the past few years, especially after the AK Party came to power in 2002. A survey
conducted by research company Konda for Milliyet in 2007 asserted that the number of
covered women rose to 69.4 percent from 64.2 percent in four years. Turban-wearing
women jumped to 16.3 percent from 3.5 percent in the same period. The turban is a more
conservative way of covering one’s head in Turkey.
‘Güzin Abla’ focuses on headscarf complaints
The TSK plan also suggested that manufactured letters be sent to Hürriyet’s Güzin Abla,
an advice column that counsels people on issues related to marriage, love, friendships and
broken hearts. The letters would be focused on the difficulties faced by headscarfwearing women and their complaints due to having been forced to cover their heads by
their families or husbands.
On Feb. 25, 2008, a letter sent under the pen name “Çözüm Arıyoruz” (We are seeking a
solution) complained that a 32-year-old woman was forced to wear the Islamic headscarf
by her family but wished to get rid of the scarf. “I shared my decision with my husband,
and he respects me. But the pressure of my friends and family discourages me. My
husband’s family accused me of corrupting the beliefs of their son. My husband and I
love each other very much, but we do not lead the lives we wish. Please show me a
solution. Maybe you will also help other people in my situation with your advice,” read
the letter.
Another letter was sent by a 16-year-old girl who was rejected by her girl friend after she
was forced to wear the headscarf by her family. “I would like to choose the dresses I am
supposed to wear by myself, put on make-up and swim in swimsuits. But I cannot. I plan
to leave home. What should I do?” asked the girl.
Yet another letter, again written by a scarf-wearing woman, expressed her surprise to see
covered students willing to attend universities. “Universities are a home of science and
wisdom. What does the headscarf do there? No matter how educated or wise you are, you
look ignorant if you wear the headscarf. For example, I do not want to cover my head
anymore. I started to wear the headscarf under the pressure of my in-laws. My family is
afraid of our friends. How can I save myself from external pressure and rumors? Please
advise me,” begs the letter.
333
TSK plan urges newspapers to feature fabricated reports
According to Star, some newspapers started to feature reports, mentioning the threat of
approaching reactionaryism on their front pages in line with the plan.
Some example of fabricated reports:
Sheikh’s luxurious life (Hürriyet, April 24, 2008): Mahmut Hoca, the leader of the
İsmailağa religious community, bought two villas in Çavuşbaşı, in İstanbul’s Beykoz
district. … The neighborhood was soon filled with followers donning black gowns and
chadors. Among the stories to be leaked to the press was the news that “money collected
from community members by reactionary members went straight into the sheikh’s
pocket” and that “the sheikh leads a very luxurious life.”
Dear Güzin Abla (Hürriyet, Feb. 25, 2008): I am a 32-year-old covered woman. But I
no longer want to wear the headscarf. My husband respects this choice of mine. But I
have not been able to fully take it off because of fear of pressure from our neighborhood
and inappropriate comments and even malicious gossip. Pseudonym: Lonely Girl
‘I’m 16 years; my family forced me to cover’
Hello Güzin Abla, I am a 16-year-old young girl. My family has forced me to cover but
my heart isn’t in it. … I want to choose my own outfits, wear a bathing suit and put on
makeup. But I can’t. I’m even thinking about running away from home. What should I
do?
‘Scarf makes one look uneducated!’
No matter how intellectual, cultured or elite you may be, if you have a scarf on your head
then you project an image of an uneducated person. For example, I no longer want to
wear the headscarf. I covered due to pressure from my mother-in-law and father-in-law.
Please suggest a solution, give me an answer.
87 percent say TSK most credible institution Milliyet (Dec. 4, 2007): Surveys that
portrayed the military as the must trusted institution in Turkey were among the pieces of
news run in the media. According to the TNS Piar poll broadcast on a national television
channel, 87 percent of Turkish people pointed to the TSK as the most trusted institution.
Spread news that the number of covered girls increasing Milliyet (Dec. 4, 2007) The
daily featured a “religion and headscarf” poll conducted by the Konda Research
Company, which found that the number of covered women in Turkey had dramatically
increased. The number of women who wear the headscarf increased from 64.2 percent to
69.4 percent in the last four years under the Justice and Development Party (AK Party)
administration and the percentage of women who wear the “turban,” a more conservative
way of covering the head, increased from 3.5 percent to 16.3 percent.
Education turning into religious education Milliyet (Nov. 24, 2007): The father of
Ş.D., a student at the Amasya Anadolu Vocational School, said: “We are Alevis. Our
fasting practices are different. I told the lady in charge of the dormitory that my daughter
was sick and she would not be able to fast. But the dorm lady said my daughter should
still fast.”
Radikal (Jan. 21, 2008): A room at the Erkan Avcı Anadolu Vocational School is being
used as a prayer room. Teacher and students perform the daily prayers there together.
Hürriyet (Apr. 24, 2008): The principal of Kartal Atatürk Primary School cancelled
performances planned for April 23 festivities, when the opening of Turkish Parliament is
celebrated, on the grounds that the costumes the girl students were wearing while
performing were too revealing.
334
Turkey is becoming Arab Cumhuriyet (Dec. 23, 2007): Selçuk University faculty of
theology Professor Şahin Filiz highlighted that the real danger looming over Turkey was
not of becoming religious but of becoming like Arab countries.
A TSK plan suggested conditioning people against the threat of ‘reactionaryism’ through
manufactured and provocative news reports. Some newspapers would feature stories with
headlines such as ‘Reactionary family marries young daughter to old man’ and ‘Money
collected from religious group sent to sheik; sheik spends it on luxurious holiday’ on a
regular basis
-------------------------------------------------------------------------------------------------------------------Wiretapping scandal still echoes in capital
Hürriyet
-----------------------------The wiretapping scandal is still on the capital's agenda as Prime Minister Recep Tayyip
Erdoğan says all judicial members should first respect court decisions.
Prime Minister Recep Tayyip Erdoğan has criticized how judicial members reacted to the
wiretapping scandal after attending the fourth meeting of the Council of Disabled People
on Monday.
The Court of Appeals’ chief prosecutor has reportedly begun examining the connection
between the ruling Justice and Development Party, or AKP, and the wiretapping scandal
in order to determine whether there has been “illegal wiretapping by political order.”
“I have no received any information to confirm this. No step has been taken that is
against the law,” Erdoğan told reporters. “It is clear whose attitude is wrong if the judicial
institutions or officials don’t respect the court’s decisions [to grant permission for the
wiretaps]. Above all, the judicial members should respect the court’s decisions. As long
as they expect us to respect the decisions, then they should, too.”
Erdoğan also said he has been wiretapped illegally.
“How dare they suggest such claims against my party when the reality is well known?”
the prime minister said. “I find it quite ugly. Nobody has the right to accuse my party of
having connections to such illegal actions. The government has been acting within the
legal frameworks.”
Gül attempts to ease tension
President Abdullah Gül meanwhile received both Justice Minister Sadullah Ergin and
Hasan Gerçeker, the head of the Supreme Court of Appeals, on Monday in an attempt to
ease tension related to the wiretapping scandal that shook the country last week.
News hit Thursday that Istanbul Chief Prosecutor Aykut Cengiz Engin and the Supreme
Court of Appeals switchboard were wiretapped within the scope of the Ergenekon case,
an investigation into a suspected gang that allegedly sought to topple the government.
The wiretapping was revealed when the Justice Ministry’s Inspection Committee sent a
letter to the 11th Istanbul High Criminal Court asking for a three-month extension for the
surveillance.
It has also been claimed that Osman Kaçmaz, chief judge of the First High Criminal
Court in Sincan, and Ömer Faruk Eminağaoğlu, the chairman of the Judges and
Prosecutors Association, or YARSAV, had been illegally tapped by the
Telecommunications Directorate. Eminağaoğlu is known for his critical remarks against
335
the AKP and Kaçmaz previously ruled that President Gül should be tried in a corruption
case dubbed “the missing trillion.”
Court suggests legal changes on wiretapping
“It is not about disagreement. We only expressed our opinions and the matters that we
voiced earlier,” Gerçeker told reporters outside Çankaya Palace following his talks with
Gül.
“I would like to stress that wiretaps are legal within the right framework. But if you
wiretap by violating basic human rights and freedoms, you need to update the related
regulations,” the head of the Supreme Court of Appeals added. “It needs to be evaluated
carefully.”
Having suggested some legal changes on wiretapping, Gerçeker avoided giving details of
the meeting, or of Gül’s remarks.
‘Thousands of judges and hundreds of journalists are wiretapped’
Tacidar Seyhan, a deputy of the main opposition Republican People’s Party, or CHP, has
claimed that thousands of judges and hundreds of journalists, as well as members of
Parliament, are currently being wiretapped.
According to a report by daily Hürriyet, Seyhan, an ex-member of the Illegal
Wiretapping Investigation Commission, said: “Judges and prosecutors have been
wiretapped over the last three years... Some 3,000 judges, 300 deputies and 613
journalists are being wiretapped. Also the parliamentarians’ e-mails are checked at least
three to four times before being received.
---------------------------------------------------------------------------------------------------------------Çiçek’s release raises doubts about court impartiality
Todays Zaman
-----------------------------------------Legal professionals are continuing to react to the release of a colonel on Friday, 44 hours
after he was arrested on charges of membership in Ergenekon, a clandestine gang accused
of plotting to overthrow the government, with many more joining the ranks o
Col. Dursun Çiçek, whose signature appears on a military document titled the Action
Plan to Fight Reactionaryism, which details a plan to undermine the ruling Justice and
Development Party (AK Party), was arrested for the first time in the investigation into
coup plotting officers in the military on July 18, but was released the next day on the
grounds that the original copy of the action plan was not available.
He was arrested again last week when prosecutors conducting the Ergenekon
investigation obtained the original copy of the document with Çiçek’s wet signature.
However, he was released after being briefly detained, with the İstanbul 9th High
Criminal Court citing the reason for its decision as “the suspect having no possibility of
obscuring evidence and having a permanent address where he can be found,” under
Article 100 of the Code on Criminal Procedure (CMK). However, the same article -which allows for the release of individuals if they are unable to obscure evidence and
have a permanent residence where they can easily be found -- also states in its second
paragraph that these reasons alone are not sufficient for the release of individuals in
crimes against the constitutional order.
Taylan Tanay, a lawyer who heads the İstanbul branch of the Contemporary Jurists’
336
Association (ÇHD), said: “This has nothing to do with law anymore. For lawyers who
deal with the CMK, like me, this decision came as a shock. In the CMK [Article] 100/3,
when it lists the reasons for arrests, the article automatically takes it as a fact that there is
the possibility that the suspect will escape. It is very strange that the court ruled there is
no reason to believe that he might escape.” Tanay said he had never heard such a decision
before.
The court’s release ruling also raises questions about the court’s integrity, according to
retired military judge Faik Tarımcıoğlu. “This decision shows the catastrophic situation
the law is in Turkey. I wasn’t really surprised by Çiçek’s release, but what we have here
is a biased view about the core substance of the case. Even if the first three articles of the
release ruling are listed as procedural reasons, the fourth is about the substance of the
case, which is completely unnecessary. When the court does that, it is violating the
principle that a court should not declare any views on a case before the case is heard.
Judges that make such decisions without having a full grasp of the case and all the files in
the case cause questions to arise.”
Lawyer Hakan Tunçkol, who specializes in criminal law, said the decision to release
Çiçek was not a good one because there could be more evidence somewhere else. “It
doesn’t make sense to say there is no possibility that the suspect will obscure evidence
because such things have happened before and they can happen now.”
-----------------------------------------------------------------------------------------------------------------Counter Narcotics Operations
Time Turk
-----------------------------------Turkish security forces confiscated 53.6 kilograms of hashish and 8.7 kilograms of heroin
in separate operations conducted in north-western province of Kocaeli, eastern province
of Agri and western province of Bursa on Monday.
20 people were detained in connection with the illicit drugs.
----------------------------------------------------------------------------------------------------------------
Turkish frigate returning to Turkey from Somali anti-piracy
mission
Thursday, 19 November 2009 08:30
Time Turk
---------------------------------A Turkish frigate is set to return to its base on Thursday after completing service as part
of a NATO mission to fight against Somalian pirates in the Gulf of Aden.
A Turkish frigate is set to return to its base on Thursday after completing service as part
of a NATO mission to fight against Somalian pirates in the Gulf of Aden.
The Turkish frigate, TCG Gediz (F-495), will dock at the Navy Command Center in
Golcuk, Kocaeli, with a ceremony to welcome its 266 personnel from a five-month
mission under NATO's Standing NATO Maritime Group 2.
The frigate set sail for the Gulf of Aden in June.
337
----------------------------------------------------------------------------------------------------------------
Geo-strategic issues
Turkey says it may store low-enriched uranium from Iran
TODAY’S ZAMAN
--------------------------------------------------Energy Minister Taner Yıldız said on Friday that Turkey was ready to store low-enriched
uranium from Iran and that there were no technical obstacles in the way of such storage.
Yıldız's remarks came in response to questions concerning a proposal by the head of the
United Nations' nuclear watchdog, who suggested Turkey as a third-country destination
for Iran's enriched uranium. Turkey would not say no if both Iran and the five permanent
members of the UN Security Council plus Germany make an official request on the issue,
Yıldız told reporters, noting that there has not yet been such request, but the issue is still
being discussed. There will be no technical problem in storing low-level enriched
uranium here, he said. “Storage is technically not a problem. What matters is the decision
that will be made during meetings with our president and prime minister,” he said,
without elaborating further. Mohamed ElBaradei, the director general of the Viennabased International Atomic Energy Agency (IAEA), said he proposed Turkey as a thirdcountry destination after Iran failed to agree to a Western plan where its enriched
uranium would be sent to Russia for further enrichment to reactor-grade fuel. Tehran has
yet to give a full official reply to the proposal, which was drafted three weeks ago after
consultations with Iran, France, Russia and the US.
The plan requires that Tehran send 1.2 tons (1,100 kilograms) -- around 70 percent of its
stockpile -- of low-enriched uranium to Russia in one batch by the end of the year for
further enrichment, a move that would ease international concerns that the material could
be processed for a bomb. After further enrichment in Russia, France would then convert
the uranium into fuel rods that would be returned to Iran for use in a reactor in Tehran
that produces medical isotopes. Fuel rods cannot be further enriched into weapons-grade
material.
On Thursday, ElBaradei initiated a telephone conversation with Turkish Foreign Minister
Ahmet Davutoğlu, during which ElBaradei offered “some technical details” concerning
the proposal. Diplomatic sources approached by Today’s Zaman admitted that the
technical details were about Turkey’s possible role in shipping Iran’s enriched uranium.
Yet the same sources declined to give further details on the content of those technical
talks, pointing to the sensitivity of the ongoing process.
Thus, there is still no clarification by the UN or Turkey as to whether ElBaradei’s
proposal is solely about storing Iran’s uranium in Turkey or whether it also involves a
role similar to the one which would have been played by Russia and France. The issue
was discussed during talks between senior Iranian and Turkish leaders on the sidelines of
an economic summit of the Organization of the Islamic Conference (OIC) held in
İstanbul earlier this week.
338
Speaking to reporters before departing from İstanbul late on Monday, Iranian President
Mahmoud Ahmadinejad declined to comment directly on ElBaradei’s offer for Turkey to
play a role, but said Iran had much trust in Turkey. “We have very good relations with
Turkey. We trust each other,” Ahmadinejad was quoted as saying by the Anatolia news
agency. He avoided giving a direct answer when persistently asked about Iranian media
reports that said Tehran had rejected the offer.
-------------------------------------------------------------------------------------------------------------------Turkey offers help to overcome confidence crisis over Iran’s LEU
Todays Zaman
----------------------------------------------In a bid to resolve the standoff between Iran and world powers over low-enriched
uranium (LEU), Turkey is prepared to offer escrow service, storing LEU in its own
territory under the supervision of the International Atomic Energy Agency (IAEA), a top
Turk
“We have a lot of political capital in Tehran, and we helped diffuse tension between Iran
and world powers in the past,” Foreign Minister Ahmet Davutoğlu told Today’s Zaman
over the weekend while traveling to Spain to meet with his Spanish counterpart. He
signaled that Turkey is willing to take up the IAEA suggestion that Iran send its LEU to
Turkey, a friendly third country.
Recalling that Turkey had convinced Iran to send a delegation headed by Iran’s Supreme
National Security Council Secretary Saeed Jalili to meet with European Union High
Representative for the Common Foreign and Security Policy Javier Solana, who presided
as moderator of the 5+1 group (the UN Security Council’s five permanent members and
Germany) delegation on Oct. 1, Davutoğlu said the dialogue process has reached this
point because of Turkish efforts and that talks should continue.
He stated that he held telephone conversations with both IAEA chief Mohamed
ElBaradei and Iranian officials last week to confirm Turkey’s willingness to act as a
mediator on the issue in a major drive to prevent the disagreement from escalating into a
full-blown crisis and help allay concerns on both sides.
The issue originated when Iran realized it was running out of special fuel to operate a
Tehran research reactor that produces radioactive isotopes for cancer treatment. On Oct.
1, the meeting between Iran and world powers resulted in an agreement that Tehran
would send the bulk of its LEU to Russia and France for further processing and
conversion into fuel for the research reactor.
The agreement, however, was stalled over the timing and logistics of how Iran will part
ways with its LEU, which some in Iran see as a vital strategic asset. The objections that
were raised later by Iranian officials about sending the LEU to France or Russia
prompted the UN to suggest that a friendly third country such as Turkey could act as
escrow holder until the fuel arrives for the Tehran reactor.
From a technical standpoint, Turkey has the capability to store the LEU under watchdog
agency supervision, Turkish officials said last week. “There is no problem from the side
of Turkey with Iran storing its LEU in Turkey,” Energy Minister Taner Yıldız told
reporters. The UN plan requires Tehran to send 1.2 tons (1,100 kilograms) -- around 70
percent of its stockpile -- of LEU to Russia in one batch by the end of the year for further
339
enrichment, a move that would ease international concerns that the material could be
processed for a bomb. After further enrichment in Russia, France would then convert the
uranium into fuel rods that would be returned to Iran for use in a reactor. Fuel rods cannot
be further enriched into weapons-grade material.
Turkey, which has very close political and trade relations with Iran, has said in the past it
is willing to mediate between Iran and the West over Iran’s nuclear program. Turkish
officials had comprehensive talks with Iranian President Mahmoud Ahmadinejad and
Iranian Foreign Minister Manouchehr Mottaki, who were both in İstanbul to attend an
Organization of the Islamic Conference (OIC) economic summit last week.
Turkey against all nuclear arms
Davutoğlu reiterated Turkey’s policy regarding the nuclear arms issue, saying Ankara is,
and has been, against all nuclear weapons, especially in the Middle East. “No matter who
possesses these deadly weapons, we are against it,” he said, adding, however, that every
country has a right to develop nuclear technology for peaceful purposes, such as meeting
legitimate energy needs.
“Countries should be able to produce enriched uranium for civilian purposes, but the
process must be transparent and for peaceful goals,” Davutoğlu underlined. “We are not
doing this to favor Iran as our approach to nuclear arms and nuclear energy issues is valid
for other countries as well,” he added.
The Turkish foreign minister also balked at more sanctions targeting Iran, saying Turkey
would be most adversely impacted in the case of a possible expansion of embargo and
trade restrictions. “We suffered immensely when the UN Security Council imposed an
embargo on Iraq during Saddam’s rule. The sanctions have a way of punishing those who
were not intended to be punished in the first place. The Iraqi embargo affected not only
Turkey but also the Iraqi people,” he said.
Davutoğlu emphasized that Turkey prefers negotiations to resolve outstanding issues
between Iran and Western powers, noting that military means fall short of accomplishing
goals and complicate matters worse. “Let’s give talks a chance and stick to negotiations,”
he added.
Davutoğlu ‘very optimistic’ for Spanish EU presidency
Foreign Minister Ahmet Davutoğlu said Sunday he is “very optimistic” about Spain’s
upcoming presidency of the European Union, while his Spanish counterpart, Miguel
Angel Moratinos, pledged to doing their best to move Turkey’s EU accession process to
an “irreversible path.” The two ministers’ remarks came in the Andalusian city of
Cordoba following official talks between Spanish and Turkish delegations led by the two
within the framework of Davutoğlu’s three-day official visit to Spain. Spain will take
over the six-month rotating presidency of the EU from Sweden in January. Before
wrapping up his visit today Davutoğlu will deliver a speech titled “Turkey and Spain,
Two Sides of the Mediterranean: Joint Contributions to Global Peace and Security,” at a
breakfast meeting to be held at the Madrid-based Nueva Economia Forum. Cordoba
Today’s Zaman
---------------------------------------------------------------------------------------------------------------
340
Ahmedinejad Says Turkey Plays Constructive Role In Talks Over
Iran'S Neuclear Program
Time Turk
----------------------------------------------Iranian President Mahmoud Ahmedinejad has regarded Turkey's role in talks over Iran's
nuclear program as sincere and constructive.
Ahmedinejad who commented Monday on their nuclear programme during his reception
of journalists who attended the annual meeting of the Organization of Asia-Pacific News
Agencies (OANA) in Tehran, said nuclear energy was Iranian people's indispensable
right.
He said this right was not open to negotiation, noting that they would only talk with
International Atomic Energy Agency (IAEA) over the issue.
Noting that Iran was ready for a constructive and positive cooperation on nuclear energy
with the West, the Iranian president said, "cooperation in this field is to the benefit of the
West. Opposition by the Western countries against this will only make Iran stronger and
help it grow".
Commenting on Turkey's role in the talks over his country's nuclear program,
Ahmedinejad said, "As a friend and brotherly country, Turkey is trying to play a
constructive and sincere role."
--------------------------------------------------------------------------------------------------------------------
Celebrations to mark TRNC's 26th Anniversary
Time Turk
----------------------------------------------President Mehmet Ali Talat of the Turkish Republic of Northern Cyprus (TRNC) said on
Saturday that, "we are struggling for freedom and peace for more than 50 years".
"Today, we are marking a new anniversary of TRNC. We show to the whole world that
we have the power for self government and improve relations," Talat said in his speech at
TRNC's Bayrak Radio and TV.
Talat said although the steps taken so far were not sufficient, and noted that TRNC
people were endeavoring to stand erect despite the imposed unjust isolations and
impediments.
Talat said TRNC was not established for separatism as it was alleged by propagandas of
Greek Cypriot leadership. "Even in the statement in its foundation, TRNC adopted a
target envisaging unification of the two peoples within Cyprus republic."
"During this year's foundation anniversary, I would like to remind the good will message
341
in that statement," Talat said.
Talat said Cyprus talks were carried out with the full support of Turkey and with the
decisions and participation of TRNC's legal organs.
TRNC President Talat said Cyprus problem, which has been continuing for long years,
was a chronical disease hindering all sorts of development. "It is our task to get rid of this
disease and be an example to the whole world."
-----------------------------------------------------------------------------------------------------------------
Turkey's FM in Iran to meet Ahmadinejad over nuke talks
WORLD BULLETIN
-----------------------------------------Turkish Foreign Minister Ahmet Davutoglu arrived in Tabriz, Iran on Thursday to have
several talks.
Turkish Foreign Minister Ahmet Davutoglu arrived in Tabriz, Iran on Thursday to have
several talks.
Davutoglu will meet Iran's President Mahmud Ahmadinejad in Tabriz on Friday to
discuss nuclear issues.
Davutoglu who visited Kabul for the oath-taking ceremony of Afghan President Hamid
Karzai, met with Iranian First Vice President Mohammad Reza Rahimi.
Rahimi invited Davutoglu in Iran during the meeting, and Davutoglu accepted the
invitation.
Davutoglu will discuss nuclear issues with Ahmadinejad in tomorrow's meeting.
---------------------------------------------------------------------------------------------------------------------------------------Turkey's FM meets Iran's President, calls Bosnia's Silajdzic
WORLD BULLETIN
-------------------------------------------------The Turkish foreign minister spoke to Bosnia-Herzegovina's Presidency member by
phone on Friday.
The Turkish foreign minister spoke to Bosnia-Herzegovina's Presidency member by
phone on Friday.
An international body overseeing Bosnia's peace after the 1992-95 war on Thursday
delayed a decision until February on ending the country's status as an international
protectorate.
Turkey's Foreign Minister Ahmet Davutoglu had a phone talk with Bosnia-Herzegovina's
Presidency member Haris Silajdzic when he was visiting Azerbaijan Museum in the
Iranian city of Tabriz.
Separatist Bosnian Serbs want the OHR shut down. But the Muslims and Croats want it
to remain until safety mechanisms are installed in the constitution that would prevent the
possible secession of the Serb Republic from Bosnia.
342
Davutoglu is actually paying a formal visit to Iran.
During their phone talk, Silajdzic briefed Davutoglu on the ongoing constitutional reform
process in Bosnia-Herzegovina and recent developments in the country.
Meeting with Ahmadi-Nejad
Earlier on Friday, Davutoglu had a meeting with Iran's President Mahmud AhmadiNejad.
Davutoglu and Ahmadi-Nejad mainly focused on Iran's nuclear program as well as
bilateral and regional economic relations. Davutoglu was in Afghanistan on Thursday to
attend Afghan President Hamid Karzai's oath-taking ceremony. Davutoglu informed
Ahmadi-Nejad about developments in Afghanistan and said uncertainty in Afghanistan
disappeared after Karzai elected president which he also said was an important new step
for Afghanistan's security and stability, diplomats said.
The two countries have also agreed to hold talks with third countries to improve the
railroad line from Europe to China which also passes through Turkey and Iran.
Davutoglu is expected to return to Turkey later in the day.
-----------------------------------------------------------------------------------------------------------Turkish state minister in Syria to attend cooperation symposium
Time Turk
----------------------------------Turkish State Minister Cevdet Yılmaz, travelled to Syria on Saturday.
Yilmaz will be attending the symposium on "Cooperation between State Planning
Organizations of Turkey-Syria on November 14 and 15.
---------------------------------------------------------------------------------------------------------------Turkish foreign minister in Spain on a three-day trip
Sunday, 15 November 2009 12:29
Time Turk
----------------------------------------Turkish Foreign Minister Ahmet Davutoglu arrived in Spain on Saturday on a three-day
official trip.
Davutoglu is expected to ask Spain, which will assume the EU's rotating Presidency in
the first half of 2010, to further facilitate Turkey's EU accession process.
A wide range of issues including Cyprus problem, regional and international issues and
the Middle East problem will be discussed during the meeting between Turkish and
Spanish delegations on Sunday.
The preparations for the 2nd Turkey-Spain Inter-governmental Summit to be held in
Istanbul on February 2010 will also be discussed during this meeting.
Spain which postponed its intergovernmental meetings with Italy, france, Germany an
Portugal after June 2010 made a special gesture for Turkey by scheduling the meeting to
take place in February.
343
-------------------------------------------------------------------------------------------------------------------
Turkey Expects Spain To Support Its Eu Membership, Minister
Time Turk
--------------------------------------------The Turkish foreign minister expressed on Monday Turkey's expectation that Spain
should support its European Union (EU) membership.
Turkey's Foreign Minister Ahmet Davutoglu said that Spain, which would take over the
rotating presidency of the EU in the first half of 2010, would launch activities in Europe
backing Turkey's membership.
"The Spanish presidency of the EU should also work to eliminate technical problems in
launching Turkey-EU negotiations on several chapters, and opening of new chapters,"
Davutoglu told Turkish reporters in the Spanish capital of Madrid.
Davutoglu is actually paying a formal visit to Spain.
"During its presidency, Spain should also contribute to Turkey's EU membership bid, and
work to enable the union fulfil its commitments to lift embargoes on the Turkish
Republic of Northern Cyprus (TRNC) and to make the union more unbiased," Davutoglu
also said.
Davutoglu said Turkey would support any good-willed initiative in the Middle East.
"Turkey is backing Obama's Middle East policy, and it will also support such an initiative
of France if launched," he said.
Davutoglu said that Turkey was ready to mediate between Israel and Syria again in case
two countries wanted, and also said Turkey was considering the issue only within the
framework of regional peace.
King Juan Carlos of Spain received Davutoglu earlier on Monday. Davutoglu is expected
to proceed to Barcelona later in the day to inaugurate Turkey's Consulate General in this
Spanish city.
-----------------------------------------------------------------------------------------------------------------Turkey's FM writes on EU ties on Spanish paper
Time Turk
-----------------------------------------------Davutoglu wrote an article published Monday in Spanish daily El Pais.
Turkish foreign minister has called the European Union to focus on added-value that
Turkey's EU accession would bring instead of questioning the country's European
identity.
"Fifty years after the establishment of relations between Turkey and the EU, it's amazing
344
that there are still those who question the European identity of our country. ... Now, given
the magnitude of the challenges and opportunities before us, we must abandon those
grueling debates and focus on the added value that Turkey's entry would involve,"
Davutoglu said in an article published Monday in Spanish daily El Pais.
Davutoglu said Turkey and Spain shared the idea that the Mediterranean should once
again be a source of inspiration for peace and stability, adding that the idea had led the
two countries to sponsor, the Alliance of Civilizations.
"With the Alliance of Civilizations, our countries have shown that, while preserving the
uniqueness of our identities, we enrich each other through the recognition of others,"
Davutoglu said.
The Turkish foreign minister said the world faced multiple challenges such as the
financial crisis, energy security, illegal migration, epidemics, climate change, organized
crime, lack of understanding between Islamic and Western societies, extremism and
terrorism.
"If the aim is to eradicate all forms of intolerance and discrimination which is based on
religious grounds or otherwise, to promote a democratic and equitable international order,
to achieve steady economic development and to do so in a sustainable way, entry of
Turkey into the EU as a full member can make an important difference," Davutoglu said.
"The main objective of our foreign policy has always been the maintenance of peace,
stability and prosperity everywhere. The growing Turkish economic dynamism, coupled
with demographic qualities, gives the EU a strategic choice when addressing economic
imbalances and future challenges of population. When we are in a position to enter the
EU as a full member we will assume responsibility for our part," Davutoglu wrote.
--------------------------------------------------------------------------------------------------------------------
Italian President Napolitano Arrives In Ankara
TIME TURK
------------------------------------Italian President Giorgio Napolitano has arrived in Ankara Monday on an official trip
upon an invitation by his Turkish counterpart Abdullah Gul.
Napolitano was greeted at the Esenboga International Airport by Turkish State Minister
and Chief Negotiator for EU talks Egemen Bagis, Governor of Ankara Kemal Onal and
Italian Ambassador in Ankara Carlo Marsili.
During Napolitano's visit to Turkey, issues such as bilateral relations, Turkey-EU
relations, regional and international matters would get discussed between Napolitano's
delegation and Turkish authorities.
President Napolitano will proceed to western province of Izmir after completing official
talks in Ankara. In Izmir, Napolitano will meet with Italian citizens living in Turkey and
visit several historical sites.
-------------------------------------------------------------------------------------------------------------------6th Turkish-Italian forum will take place in Istanbul
345
TIME TURK
----------------------------------------The 6th Turkish-Italian forum will take place in Istanbul on November 18-19.
The 6th Turkish-Italian forum will take place in Istanbul on November 18-19.
A press release issued by the Turkish Foreign Ministry on Monday said Turkish Foreign
Minister Ahmet Davutoglu and his Italian counterpart Franco Frattini would both deliver
speeches at the opening of the forum which will bring together politicians, businessmen,
scholars and press members from the two countries.
The series of meetings organised jointly by the Foreign Ministry Center for Strategic
Research, Italian Unicredit Bank, and Italian geopolitics magazine LIMES would further
enrich the deepening bilateral relations with contribution from the civil society.
The two parties will exchange views on ways to reciprocally improve perceptions in the
socio-cultural domain at the morning session to be held on October 19.
-------------------------------------------------------------------------------------------------------------------Turkey's PM meets Italy's President in Ankara
TIME TURK
---------------------------------------Erdogan met with Italian President Giorgio Napolitano who started a formal visit to
Turkey on Monday.
Turkish Prime Minister Recep Tayyip Erdogan met with Italian President Giorgio
Napolitano who started a formal visit to Turkey on Monday.
The meeting at Erdogan's office was closed to press. It lasted about half an hour.
Later, Erdogan hosted a dinner in honor of Napolitano in Ankara on Monday.
The dinner, which took place at Prime Ministry residence, was closed to press.
Italian president is in Turkey on an official trip upon an invitation by his Turkish
counterpart Abdullah Gul.
Napolitano will proceed to western province of Izmir after completing official talks in
Ankara. In Izmir, Napolitano will meet with Italian citizens living in Turkey and visit
several historical sites.
-------------------------------------------------------------------------------------------------------------------Italian President meets Turkish Parliament Speaker
TIME TURK
--------------------------------------Napolitano said that a reform was underway to adopt one-house system --a single
Parliament-- in Italy like it was in Turkey.
Italian President Giorgio Napolitano paid a visit to Turkish Parliament on Tuesday and
met with Parliament Speaker Mehmet Ali Sahin.
During their meeting, Sahin described relations between Turkey and Italy as perfect and
thanked Napolitano for his country's support to Turkey's EU bid.
Commenting on commercial relations, Sahin said Italy was Turkey's third biggest trade
partner with a trade volume of 19 billion USD annually.
346
Sahin said that energy deal signed in August between Turkey and Italy would improve
relations, adding that another agreement, which was signed to establish an Italian
university in the Aegean city of Izmir, would boost cultural relations.
On his part, Napolitano said that he visited parliaments of the countries he travelled,
adding that it was important for him to learn the functioning of Turkish Parliament.
Noting that the biggest difference between Turkish and Italian parliaments was single and
two-house system, Napolitano said that there were senate and house of representatives in
Italian Parliament.
Napolitano said that a reform was underway to adopt one-house system --a single
Parliament-- in Italy like it was in Turkey.
------------------------------------------------------------------------------------------------------------------Turkish, Egyptian armies sign MoU
TIME TURK
---------------------------------------Egypt's Defense Minister Hussein Tantawi paid a visit to Chief of Turkish General Staff
Gen. Ilker Basbug on Wednesday.
Egypt's Defense Minister Hussein Tantawi paid a visit to Chief of Turkish General Staff
Basbug welcomed Tantawi with full military honors at the General Staff headquarters in
Ankara and the two attended a ceremony to sign a memorandum of understanding for
military training, technical and scientific cooperation between Turkish and Egyptian
armies.
Speaking at the ceremony, Basbug said military cooperation between the two countries
would make significant contributions to the development of Turkish-Egyptian relations.
"The memorandum of understanding we signed today is of significant importance for
peace in our region as well at a time when global developments force regional countries
to cooperate against threats to peace and security," Basbug said.
The Egyptian defense minister said the agreement aimed at supporting peace and stability
in all regional countries and to reduce risks of conflict.
-------------------------------------------------------------------------------------------------------------------Anti-Islamic Dutch lawmaker to visit Turkey
Todays Zaman
---------------------------------------------Dutch right-wing lawmaker Geert Wilders is among members of a delegation from the
Netherlands House of Representatives which will pay a visit to Turkey in early January,
the Anatolia news agency reported over the weekend.
Wilders has outraged Muslims by comparing the Quran to Adolf Hitler’s “Mein Kampf”
and calling for an end to Muslim immigration to the Netherlands. He has defended his
right to criticize the actions of a minority he says poses a threat to society.
During European Parliament elections in early summer, running an anti-Muslim and anti-
347
Turkey campaign, Wilders got 17 percent of the vote, and his Party for Freedom became
the second-largest party after the Christian Democrats and before the Socialists in what
was once known to be one of the most liberal countries on earth. In his victory speech
Wilders said: “Should Turkey as an Islamic country be able to join the European Union?
We are the only party in Holland that says it is an Islamic country, so no, not in 10 years,
not in a million years.”
In its report, posted from Amsterdam, Anatolia said that the delegation from the Dutch
House of Representatives is expected to be in Turkey between Jan. 4 and 9, while noting
that Wilders most recently visited Turkey in 1983.
-------------------------------------------------------------------------------------------------------------------Turkish Interior Minister Atalay Due to Russia
Tuesday, 17 November 2009
USAK PUBLICATIONS
------------------------------------Turkish Interior Minister Besir Atalay will travel to Russia to attend a conference on road
safety.
Atalay will take part at the "Global Ministerial Conference on Road Safety" to be hosted
by the Russian Federation in Moscow on November 19 and 20, his office said on
Tuesday.
Russian President Dmitry Medvedev will speak at the opening of the conference.
-------------------------------------------------------------------------------------------------------------------Turkish Foreign Minister Receives American-Turkish Council Chairman
USAK PUBLICATIONS
------------------------------------------Turkish Foreign Minister Ahmet Davutoglu received the chairman of the AmericanTurkish Council in Ankara on Tuesday.
Davutoglu received American-Turkish Council chairman Brent Scowcroft and Richard
Armitage who will succeed Scowcroft and begin his service on January 1, 2010.
The meeting was closed to press.
--------------------------------------------------------------------------------------------------------------------
Egyptian Defense Minister Pays Visit To Top Turkish
Commander
TIME TURK
--------------------------------------Egypt's Defense Minister Hussein Tantawi paid a visit to Chief of Turkish General Staff
Basbug welcomed Tantawi with full military honors at the General Staff headquarters in
Ankara and the two attended a ceremony to sign a memorandum of understanding for
military training, technical and scientific cooperation between Turkish and Egyptian
348
armies.
Speaking at the ceremony, Basbug said military cooperation between the two countries
would make significant contributions to the development of Turkish-Egyptian relations.
"The memorandum of understanding we signed today is of significant importance for
peace in our region as well at a time when global developments force regional countries
to cooperate against threats to peace and security," Basbug said.
The Egyptian defense minister said the agreement aimed at supporting peace and stability
in all regional countries and to reduce risks of conflict.
-----------------------------------------------------------------------------------------------------------------Turkish FM Davutoglu to Attend Karzai's Inauguration
Wednesday, 18 November 2009
USAK PUBLICATIONS
----------------------------------------------Turkish Foreign Minister Ahmet Davutoglu is set attend the inauguration of Hamid
Karzai for a second term as Afghanistan's President.
A press release issued by the Foreign Ministry on Wednesday said, Davutoglu would
travel to Afghanistan Wednesday evening to attend Karzai's inauguration which will be
held on Thursday.
Turkey believes the social harmony and welfare of Afghanistan would be further
enhanced during President Karzai's second term, the Foreign Ministry said.
Turkish Foreign Ministry reiterated Turkey's commitment to contributing to welfare and
security of the Afghan people in the press release.
-----------------------------------------------------------------------------------------------------------------Turkey- Bangladesh JEC Meeting Held
Wednesday, 18 November 2009
USAK PUBLICATIONS
-----------------------------------------Third term meeting of Turkey-Bangladesh Commerce, Economy & Technical
Cooperation Joint Commission began in Ankara on Wednesday.
The meeting was held under the co-chairmenship of Turkish State Minister Mehmet
Aydin and Bangladeshi Finance Minister Abu Maal Abdul Muhith.
Speaking at the meeting Aydin said the trade volume between Turkey and Bangladesh
could exceed 1 billion USD over the next three years, adding that the two countries
should engage in a comprehensive commercial and economic cooperation.
"Our goal is to use Turkey's regional opening strategy as a catalyzer in the improvement
of our bilateral cooperation and boost bilateral economic relations," Aydin said.
The Turkish minister estimated that the trade volume between the two countries would
reach up to 650 million USD by the end of 2009.
Abdul Muhith said on his part Bangladesh needed large investments, inviting Turkish
businesspeople to his country in areas such as construction, textiles, energy and
transportation.
349
----------------------------------------------------------------------------------------------------------------PM Erdogan Departs For Italy For FAO Gathering
USAK Publications
---------------------------------------Turkish Prime Minister Recep Tayyip Erdogan flied to Italy on Monday to take part at a
conference of Food and Agriculture Organization of the United Nations, or FAO.
Erdogan will make a speech at the FAO World Summit on Food Security and he will also
address the FAO conference as guest of honor.
During his stay in Rome, Erdogan is expected to hold bilateral talks with several heads of
state and government, including Italian Prime Minister Silvio Berlusconi.
Turkey's State Minister and Chief EU Negotiator Egemen Bagis and Agriculture Minister
Mehdi Eker will accompany Erdogan at his talks in Italy.
------------------------------------------------------------------------------------------------------------------Turkey's PM addresses risks of food crisis in Rome
Thursday, 19 November 2009 08:50
Time Turk
-----------------------------------The 36th Session of the FAO Conference is taking place in the Italian capital between
November 18 and 23.
Turkish Prime Minister Recep Tayyip Erdogan said, "high prices of foodstuff and energy,
climate changes, increasing unemployment because of the global financial crisis and
rising production of bio-fuel are the basic elements which triggered the global food
crisis."
Erdogan, in the Italian capital, attended the summit of the Food and Agriculture
Organization (FAO), said at a news conference at the Excelsior Hotel, "there are more
than 1 billion people in the world suffering from famine. Most of them live in
underdeveloped or in developing countries. High prices of foodstuff and energy, climate
changes, increasing unemployment because of the global financial crisis and rising
production of bio-fuel are the basic elements which triggered the global food crisis. Also,
sharp decline in agricultural investments makes the situation even worse."
"Turkey has always supported the efforts made by the FAO to ensure food safety since it
is one of the most important elements of a sustainable development. We continue sending
humanitarian aid and extending technical assistance to underdeveloped and developing
countries," he said.
Erdogan highlighted importance of supporting farmers and rural development as part of a
long-term solution to the problem of famine.
"Economic, political problem"
The Turkish prime minister also defined hunger as an economic and political problem.
Erdogan said that hunger, famine and food crisis were a political and humanitarian
problem as much as an economic problem.
"Access to sufficient and balanced food is a fundamental human rights, like the right to
350
live, education, health, property and freedom of expression," Erdogan said.
Erdogan said that trying to hide hunger, famine, clashes, wars, massacres and terrorism,
and more importantly trying to keep them under certain limits, was against the essence of
the current age.
"A solution to this current situation should be found by politicians," Erdogan also said.
Also, Erdogan said food security was the main requirement of human life and
development.
"The entire world is paying the costs of hunger and insufficient nutrition as migration and
rise in social tension today," he said.
Erdogan said he however, believed the world's course could be turned into positive.
In his speech, Erdogan referred to advantages and risks of globalization, and said children
who died of hunger in Ethiopia were every one's children, desperate people in
Bangladesh were every one's people, the society killed in Gaza and those who survived in
Gaza were every one's society.
The 36th Session of the FAO Conference is taking place in the Italian capital between
November 18 and 23.
------------------------------------------------------------------------------------------------------------------Israel planning new 'aggression on Gaza'
Sunday, 15 November 2009 11:00
PRESS TV
TIME TURK
--------------------------------------The Palestinian Hamas resistance movement has warned that Israel is fabricating pretexts
to launch a fresh military offensive on the Gaza Strip.
Israel recently accused Hamas of having test-fired a long-range missile that could reach
targets in Israel.
Hamas' spokesman in Gaza, Fawzi Barhoum, said in a written statement that the Israeli
claim "shows Israel's intentions to escalate aggressive actions against the Gaza Strip."
"Such threats are coming under the title of incitement and creating pretexts in order to
commit more new crimes against Gaza and attempt to cover over the previous crimes that
were committed during the last war," DPA quoted Barhoum as saying on Saturday.
"These claims are part of the Israeli lies to justify a new aggression on the Gaza Strip," he
added.
The latest Israeli military offensive into the impoverished Palestinian sliver, dubbed
Operation Cast Lead, claimed the lives of more than 1500 people and injured many
others. According to UN figures a large number of the victims were civilians including
women and children.
Davutoğlu slams Israel for keeping Mideast under constant tension
Turkish FM Ahmet Davutoğlu spoke of Turkey and Spain’s contribution to global peace
and stability at the New Economic Forum in Madrid on Monday
-----------------------------------------------------------------------------------------------------------------Netanyahu says Turkey would not be 'honest broker'
351
Hürriyet
----------------------------------------Turkey would not be an "honest broker" in any renewed peace talks with Syria, Israeli
Prime Minister Benjamin Netanyahu said, adding that the Turkish prime minister was not
a "fair mediator."
Turkey mediated four rounds of indirect talks last year between Israel and Syria. Ties
between Israel and Turkey have deteriorated since then, and Turkey's prime minister has
harshly attacked Israeli policies. The worsened ties between the two allies have clouded
the Ankara government’s role as a regional mediator.
Netanyahu told his Cabinet Sunday that Israel was prepared to talk with Syria, preferably
directly, according to a participant who spoke on condition of anonymity because of
government regulations.
Netanyahu said that if talks take place through a mediator, then it should be "an honest
broker," according to the same participant. He quoted Netanyahu as saying that the
Turkish premier was not a "fair mediator.
----------------------------------------------------------------------------------------------------------------------------------------
Turkish President makes phone call with Palestinian Abbas
Gul spoke with Palestinian President Mahmoud Abbas by phone on Thursday, a
statement said.
Turkish President Abdullah Gul spoke with Palestinian President Mahmoud Abbas by
phone on Thursday, a statement said.
Presidential Press Center said in a statement that Gul and Abbas exchanged views on
Palestinian issue during phone conversation.
President Gul underlined that efforts regarding national reconciliation agreement in
Palestine should be concluded as soon as possible.
-------------------------------------------------------------------------------------------------------------------Israel Minister set to visit Turkey first since Gaza offensive
World Bulletin
--------------------------------------------An Israeli minister said on Friday he was to travel to Turkey, in the first such visit since
Israel's military offensive in Gaza Turkey strongly condemned.
An Israeli minister said on Friday he was to travel to Turkey, in the first such visit since
Israel's military offensive in Gaza Turkey strongly condemned.
"I hope my visit will contribute to improving relations between the two countries which
are strategically crucial to Israel," Trade and Industry Minister Benjamin Ben-Eliezer told
352
Israeli radio.
A spokesman said Ben-Eliezer will travel to Turkey on Sunday at the head of a trade
delegation and was expected to meet Turkish Defence Minister Vecdi Gonul on Monday.
Israel killed nearly 1500 Palestinians in Gaza offensive that caused a UN war crimes
report.
Israeli forces deliberately attacked civilians, failed to take precautions to minimize loss of
civilian life and cited strong evidence Israeli forces committed "grave breaches" of the
Geneva Convention, the 575-page report noted.
Israel has rejected a cooperation with the Goldstone team or had not allowed it onto its
territory.
------------------------------------------------------------------------------------------------------------------------------------Turkey officially accepts secret deals with Israel for first time
World Bulletin / News Desk
-----------------------------------------------------Turkey officially revealed for the first time, "secret deals" with Israel were signed in the
past, Turkish paper reported.
Turkey officially revealed for the first time, "secret deals" with Israel were signed in the
past, Turkish paper reported.
The existence of secret agreements emerged as Turkey's Foreign Minister Ahmet
Davutoglu was answering a parliamentary question of main opposition party CHP Group
Deputy Chairman Kemal Anadol.
Minister Ahmet Davutoglu announced that the secret treaties with Israel was made by
previous ANASOL-D coalition government, Turkish Daily Bugün said.
ANASOL-D coalition government was formed after what Turkish journalists called
"postmodern" coup that toppled then-Islamist party from the power in 1997.
The government had been in power during the 1997-99 years.
Davutoglu said, "However, some of these agreements are "confidential because of their
service", all others are published in the Official Gazette."
However, Minister Davutoglu, did not explain confidential agreements signed with Israel.
Prime Minister Recep Tayyip Erdogan, at the party congress of the province of Kutahya,
also hinted the DSP-MHP and ANAP coalition government signed secret agreements
with Israel.
According to the article 90 of the Constitution, in order to force an agreement that Turkey
signs, it has to be adopted by the Parliament. Application of any agreement that based on
the international agreements are not requered to be brought to Parliament, but its
publication in the Official Gazette is mandated.
It is noted that the secret agreements signed between Turkey and Israel were not
published also in the Official Gazette.
-------------------------------------------------------------------------------------------------------------------Turkey condemns Peshawar attack in Pakistan
353
WORLD BULLETIN
---------------------------------------------A suicide bomber blew himself up outside a courthouse in northwestern Pakistan on
Thursday, killing 19 people.
Turkish Foreign Ministry, on Thursday, condemned the bloody attacks in Peshawar city
of Pakistan and expressed concern over the attacks.
Turkish Ministry of Foreign Affairs released a statement and said, "we have learned with
great sorrow that many people died in the terrorist attack that targeted a courthouse.
Turkey expresses condolences for those who lost their lives and wishes quick recovery to
those who were injured in the attack."
A suicide bomber blew himself up outside a courthouse in northwestern Pakistan on
Thursday, killing 19 people.
------------------------------------------------------------------------------------------------------------------Italy Reaffirms Support to Turkey's EU Bid
USAK PUBLICATIONS
---------------------------------------------Italy's president reaffirmed on Tuesday his country's support to Turkey's bid to join the
EU, saying Turkey's accession would be an added value for the 27-nation bloc and urging
EU leaders to keep their words.
Giorgio Napolitano, who is on a formal visit to Turkey, appeared at a joint news
conference in the Turkish capital after his meeting with Turkish President Abdullah Gul.
"Italy made a pledge and will keep its pledge," Napolitano said, adding that all EU states
made the same pledge to launch negotiations with Turkey.
"We have to pursue the principle of pacta sunt servanda," he said. "It does not make any
sense to act in an obstructive manner."
Napolitano said that Turkey's accession would help EU play a more important role in the
new global order.
On relations between Turkey and Italy, Napolitano said relations were very good, and
reminded that Italian and Turkish officials would get together at an intergovernmental
summit in December.
Napolitano met with Turkish Prime Minister Recep Tayyip Erdogan before his meeting
with Gul and later Erdogan flied to Italy for a FAO summit where he would meet Italian
Prime Minister Silvio Berlusconi.
Turkish and Italian foreign ministers will also have a meeting in Istanbul on Wednesday.
Napolitano said all these meetings could be seen as sign of good relations and added that
commercial ties were also very well between Turkey and Italy. He said more than 700
Italian companies were operating in Turkey and called on Turkish and Italian firm

1 Report # 94 BUSINESS AND POLITICS IN

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