BPM- Weekly Report # 91 Zone 1-Asia
Report # 91 & 92 BUSINESS AND POLITICS IN THE MUSLIM WORLD South Asia, East Asia, Central Asia, GCC, Fertile Crescent, China & Turkey Nadia Tasleem Weekly Report from 24 October 2009 to 6 November 2009 Presentation: 11 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; South Asia, East Asia, Central Asia, GCC, Fertile Crescent, China and Turkey from 24 October 2009 to 6 November 2009 as have been collected by interns. SOUTH ASIA Political Front: To begin with BANGLADESH BNP secretary general Khandaker Delwar Hossain has urged President Zillur Rahman to arrange roundtable talks with the participation of all political parties to reach a political consensus in order to resolve existing crises in the country. Meanwhile Khandaker has also alleged country’s Parliament for doing character assassination of opposition leaders. Major task for SRILANKAN government still seems to be rehabilitation and resettlement of IDPs. Government of NEPAL has warned Maoists not to turn violent during their protests otherwise strong action would be taken against them. Opposition party has accused ruling regime of MALDIVES for curbing women rights. Meanwhile Maldives Democratic Party’s (MDP) national council has passed a resolution to undertake a nationwide protest against the main opposition, Dhivehi Rayyithunge Party (DRP). The purpose of this proposed nation wide protest would be to protect and maintain the government which was lawfully elected by the people of the country. A delegation of senior U.S. officials arrived in MYANMAR for Washington's highest-level talks with the reclusive military regime in 14 years. The Obama administration's move to engage the junta appears focused on pushing for free and fair elections next year. Geo-strategic Front: As tension continues to mount on the BANGLADESH-MYANMAR border, CHINA, a common friend of the two neighbours has come forward with the suggestion for resolving the dispute between the two countries through negotiations. RUSSIAN Foreign Minister has recently paid visit to SRILANKA and extended full support to the later in all circumstances. The Chinese government has expressed commitment to increase its grant assistance to NEPAL by 50 percent. President of MALDIVES held meeting with INDIAN PM in New Delhi. Both discussed a range of issues, including climate change, economy, and security. In the meantime South Korea's Hyundai Heavy Industries has won a US$1.4 billion deal to build an offshore gas platform in Myanmar. Social Front: Malnutrition has emerged as a major social challenge being confronted by the government of BANGLADESH. The Union of MYANMAR Federation of Chambers of Commerce and Industry (UMFCCI) has honored persons who contributed to the winning of some exhibition-related awards in the recent China-ASEAN Expo held in Nanning.
1
BPM- Weekly Report # 91 Zone 1-Asia
Economic Front: German investors expressed interest to invest in BANGLADESH'S gas exploration, renewable energy, bio-gas, coal mining and photovoltaic sectors. Loan interest rates of state banks in SRILANKA have been reduced for the convenience of common man. Maldivian President claimed that Indian companies seem keen to invest in Maldivian markets. EAST ASIA Political Front: To begin with MALAYSIA PAS has failed to reach at a consensus hence split in the party has occurred. UMNO has offered them to start unity talks but PM Najib seems pessimist regarding success of unity talks. CAMBODIAN pro-Thaksin approach has raised serious concerns within THAI PM hence domestic crisis of THAILAND has started bringing regional impacts. Geo-strategic Front: Malaysia has announced to extend full support to Pakistan’s request for a full dialogue partnership in the Association of South East Asian Nations (ASEAN). CAMBODIA has refused to extradite former Thai Prime Minister Thaksin Shinawatra; despite Thai government's request. SINGAPORE has asked Thailand and Cambodia to resolve their border issue through peaceful negotiations as it would destabilize the whole region. Vietnam has condemned Cambodia's opposition leader for uprooting posts marking the border between the two countries. Social Front: Various opinion polls have indicated that INDONESIANS have very little faith in their police and courts and this faith would shrink further with the release of some important tapes damaging the image of these institutes. The Saudi Hajj Authority has allocated an additional 1,500 places to SINGAPORE for the coming Hajj season; taking the total number of places to 2,180. Economic Front: INDONESIAN consumer confidence has seen a steady increase over the last six months hence increased by 8 points from 97 to 105. According to a survey by Institute of Chartered Accountants in England and Wales (ICAEW), MALAYSIAN businesses were the least affected by the global economic downturn compared with their counterparts in Singapore and Hong Kong. MALAYSIA has expressed interest in signing trade agreement with NEWZELAND. Meanwhile Islamic finance can be regarded as the fastest growing sector in Malaysia. THAILAND’S industrial production unexpectedly rose for the first time in 11 months as electronics and automotive companies received more orders. Business sentiment among manufacturers has remarkably improved in SINGAPORE. SRILANKAN President and his VIETNAMESE counterpart have agreed to encourage bilateral trade and set the target of US$ 100 million for two-way trade volume by 2012.
2
BPM- Weekly Report # 91 Zone 1-Asia
CENTRAL ASIA Political Front: Various parties have started finalizing nominations of their candidates for upcoming municipal elections in AZERBAIJAN. In this regard ruling party has completed its signature collection campaign. Azerbaijan Islamic Democratic Party (AIDP) has started paying serious attention to the proposal given by opposition party to join her. The delegates to a congress of the two major KAZAKH opposition parties, the National Social-Democratic Party and Azat (Freedom), have decided to merge into one party called National Social Democratic Party Azat. Meanwhile Kazakhstan's financial police have launched a criminal investigation against the printer of an opposition newspaper critical of the authorities. KYRGYZ opposition has spread an official statement, harshly criticizing the just-started governmental reforms pushed by the president Bakiev, by calling them a cover for consolidation of power in the president’s hands. After bringing reforms Kyrgyz President brought his son in to politics by assigning him designation of head of the central agency for development, investment, and innovations. Meanwhile new members of Kyrgyz cabinet have taken oath to office in the Parliament house. President of TAJIKSTAN has promised to take efforts to ensure holding of the upcoming parliamentary elections at the high level and within the framework of law. Geo-strategic Front: AZERI ruling party has asked OSCE Minsk Group to recognize ARMENIA as aggressor state in order to resolve Nagorno-Karabakh conflict. Meanwhile TURKISH delegation has paid visit to Azerbaijan. Azeri-US Security Dialogue also grabbed attention. Apart from this Azeri decision to increase number of peacekeepers in Afghanistan and Palestinian decision to open embassy in Azerbaijan remained significant. Following an almost decade-and-a-half stall in Turkey's active engagement in Central Asia; Turkey has started building strong relations with the later. KAZAKHSTAN, in this context enjoys special position. Kazakhstan has expressed keen interest in promotion of a common security vision under its chairmanship of the Organization for Security and Cooperation in Europe (OSCE) in 2010. In the meantime a U.S. official has called on Kazakhstan to fulfill its obligations before it assumes the chairmanship of the Organization for Security and Cooperation in Europe (OSCE). KYRGYZSTAN has announced plan to strengthen its ties with Russia within the intergovernmental commission. TAJIK President held various meetings with his RUSSIAN counterpart yet their talks haven't produced any significant results. Meanwhile U.S. CENTCOM commander also paid visit to Tajikistan. A regional training on preventive diplomacy for Central Asia started in TURKMENISTAN. Pakistani troops have surrounded Kaniguram, a key base for UZBEK Islamic militants in Pakistan's South Waziristan region. Meanwhile twentyseven individuals have been arrested in Uzbekistan on suspicion of religious extremism. Social Front: A report by the National Coordinator on Combating Human Trafficking has revealed the Statistics of human trafficking-related crimes in AZERBAIJAN. Rapid increase in the number of swine flu victims in Azerbaijan has been observed. In this regard World Health Organization has sent special vaccine against swine flu. All the while some mosques in Baku have lowered the volume of their morning call to prayer because of
3
BPM- Weekly Report # 91 Zone 1-Asia
environmental considerations. Leading KAZAKH human rights activist Yevgeny Zhovtis has been transferred from Almaty to a labor camp in northeastern Kazakhstan. The US has criticized Kazakh treatment of the human rights activist. All the while whereabouts of a Kazakh asylum seeker deported from the Czech Republic to Almaty remains unknown. About 88% internal migrants of KYRGYZSTAN have moved in search of jobs. Meanwhile monitoring of scale and nature of gender violence showed that 83 percent of women in Kyrgyzstan face violence on the ongoing basis. Kidnapping of brides also seems to be on rise in Kyrgyzstan. Police in the Central Asian state of TURKMENISTAN have arrested a prominent environmental activist in what appeared to be a politically motivated action. In this regard activists launched demonstration at the Turkmen Embassy in Moscow. The European Union has lifted sanctions on UZBEKISTAN, despite concerns about human rights. Samarqand- a seat of learning once, has just one book store today. Economic Front: Agreements on financing of 50 projects totaling $2.607 billion were signed during the period of the World Bank operations in AZERBAIJAN. The joint session of parliamentary committees has started discussing the State Budget Bill for 2010 on Nov. 3. KAZAKHSTAN claimed to supply gas for Nabucco project in case of availability of required gas volumes. As economic revival has begun Kazakhstan has started preparations for return of good old commercial banking. In the meantime Consumer prices grew 0.4% in October 2009 in Kazakhstan. KYRGYZSTAN has decided to step out of the Central Asian energy system. Kyrgyzstan has been ranked among CIS with highest industrial decline rates. Delegation of the World Bank outlined high level of private industry and infrastructure development in Kyrgyzstan. Meanwhile World Bank has approved a number of loans to Kyrgyzstan with total at $34 million. Russia made plan to build three small hydropower plants in TAJIKISTAN. Iran’s Deputy Minister of Energy, Hamid Chitchian, heading an Iranian delegation, paid a two-day visit to Tajikistan in order to hold discussions with a number of Tajik officials and get acquainted with the process of implementation of the Iran-sponsored projects in Tajikistan. TURKMENISTAN has completed construction on its 188-km section of a 7,000-km natural gas pipeline that extends from Turkmenistan to China. UZBEK Parliament has promised to create one million jobs by 2010. The loan agreement was signed in Tashkent between the Kuwait Fund for Arab Economic Development and the Government of UZBEKISTAN to finance rehabilitation of irrigation and drainage networks in various regions of Uzbekistan. GCC Political Front: KUWAIT'S constitutional court rejected a petition brought by four voters to declare invalid the election of two women MPs because they refuse to wear the Hijab. Geo-strategic Front: To further boost regional integration, GULF STATES have agreed in principal to extend their multi-billion dollar railway project to Yemen. SAUDI ARABIA has made plan to inject carbon dioxide into the world’s biggest oil field by 2013 to trap climate-warming
4
BPM- Weekly Report # 91 Zone 1-Asia
gas and improve oil production. Meanwhile first SAUDI relief plane arrived in Niger to alleviate the suffering of the people affected by the torrential rains that caused floods over there. The UAE has recently established diplomatic ties with Haiti. Meanwhile SYRIAN people and Government show their full support to the right of the UAE to sovereignty on the three Islands - Abu Musa, Greater Tunb and Lesser Tunb - occupied by IRAN. UNITED ARAB EMIRATES urged the General Assembly of the United Nations to adopt the recommendations of Goldstone report that was approved by the Human Rights Council at its 12th special session, on the crimes committed by ISRAEL during its war on Gaza Strip. Meanwhile KUWAIT called for the implementation of recommendations of the Goldstone report on the Israeli crimes against civilians in GAZA, and stressed its condemnation of Israeli settlement actions. The Sultanate has also welcomed the findings and the recommendations of Goldstone Report. BAHRAIN and QATAR have also strongly condemned Israeli acts of aggression against Palestinians. UAE has urged international community to take serious action against ISRAELI nuclear assets. Besides that responding to the comments made by a number of Iranian officials on Hajj this year, Al-Asheikh said the Kingdom would not allow any party to undermine security during the annual pilgrimage and create division among Muslims. He was referring to the statements by Iranian President Mahmoud Ahmadinejad and supreme leader Ayatollah Ali Khomeini, who recently said that SAUDI ARABIA might abuse Iranian pilgrims during the Hajj. Meanwhile Saudi jets pounded Shiite rebel camps in northern Yemen and troops were poised to cross the border against them after they killed a Saudi border guard. Social Front: In Saudi Arabia, an advisor to the Royal Council who is a prominent Islamic scholar has launched an outspoken attack on judges for handing out excessive prison and lashing sentences. Meanwhile a new TV show that discusses issues concerning teenage girls and female university students was recently broadcast with Saudi presenters dressed in black from head to toe. The Interior Ministry has seized 281 Kalashnikov rifles, 55 boxes of ammunition and 250 magazines from a rest house located in the outskirts of Riyadh. Economic Front: GCC Investor Sentiment Report described the situation that the GCC Real Estate, Construction & Materials sector has improved dramatically, turning positive for the first time since April 2009. Slipping global stocks and a fall in the oil price reduced investor sentiment across Gulf Arab markets leading to declines on most regional bourses. In the United Arab Emirates, Dubai’s index ended 0.8 percent lower after seeing its largest oneday increase in four weeks. According to IMF the current situation of the UAE economy seems to be much better than that of last year. Bahrain has started talks with oil giant Saudi Armco over plans to move ahead with constructing a new pipeline between the two countries. Meanwhile China has shown keen interest in getting liquefied natural gas (LNG) supplies from Qatar. Despite the fact that economic recession brought adverse impact for the whole world including Arab countries yet rising oil prices have helped the world’s top oil-producing region get back on its feet.
5
BPM- Weekly Report # 91 Zone 1-Asia
CHINA Political Front: CHINA’S compensation law for the defence of people’s rights remained in focus. Meanwhile development of the People’s Liberation Army (PLA) is to protect China’s economic development and safeguard its territorial integrity. The Communist Party of China (CPC) issued four documents calling for an improved evaluation system for Party and government officials. Meanwhile government intends to evaluate civil servants in an improved and more democratic way. Geo-strategic Front: China and New Zealand have pledged to promote free trade and to fight against protectionism. Meanwhile Chinese and Australian PMs have called for early FTA deal. Chinese growing ties with Mongolia, Ukraine, Africa, Albania, Canada, Japan, Malaysia, Estonia, Egypt and Arab countries also remained significant. In the meantime, Chinese vice Premier Wang Qishan called on beefed-up Sino-U.S. coordination and cooperation in fighting the global financial crisis. China has requested the US to lift embargo against Cuba. All the while China has firmly opposed arms sales to Taiwan by the United States and any other country. At the same time, Taiwan leader Ma Ying-jeou called for both sides across the Taiwan Strait to resolve hatred through communication and negotiation and make peace an eternity. The Chinese mainland and Taiwan have agreed to start formal talks on signing an economic cooperation agreement by the end of this year. Police in the Xinjiang Uygur autonomous region has been ordered to "strike hard" at criminals during a security campaign aimed at wiping out lawlessness and continuing the hunt for people who took part in the deadly riots in the capital, Urumqi, four months ago. Hong Kong & Macau: An interpretation service to facilitate ethnic minorities in accessing local public services was launched by the government of Hong Kong. Social Front: A Chinese American with a PhD has been sentenced to 8 years jail for buying and selling human skulls. Representative of WHO has declared CHINESE-made swine flu vaccine to be safe and effective as more than 300,000 people have been vaccinated so far since late September. Kidneys are being freely traded on the Internet which is functioning as a medium for sellers and the organ brokers who have been gaining huge profits. The world's largest Internet search engine has been in negotiations with China's copyright watchdog for scanning works for its online library without permission. China's Minister of Public Security Meng Jianzhu has called for full application of the information technology in improving the police force's crime prevention and control system. At environmental front China has been putting serious effort to increase use of solar energy. Meanwhile, major State-owned companies have taken great leaps to cut down on their carbon emissions, in a key boost to the government's campaign to combat climate change. Thousands of residents in the Panyu district have signed a petition opposing construction of a garbage incinerator in their neighborhood. Hong Kong & Macau:
6
BPM- Weekly Report # 91 Zone 1-Asia
The Center for Food Safety of Hong Kong assured that 95 percent of 222 samples of meat have passed a test on the use of sulphur dioxide. Economic Front: Economic and Trade Ministers of China, Japan and South Korea vowed to oppose trade protectionism in all forms. Meanwhile China and the United States said that they would not stage any new trade protection measures against each other. Chinese investment abroad surged 190.4 percent year on year to US$20.47 billion in the third quarter. Chinese legislators have started discussing a draft law on the protection of oil and gas pipelines, which have been facing growing problems due to rapid urbanization and the expansion of pipeline networks. China's manufacturing sector expanded for the eighth straight month in October, pointing to further signs that the recovering economy is on firmer ground. Hong Kong & Macau: Hong Kong stocks went down on three consecutive days, plunging 496.59 points, or 2.28 percent. FERTILE CRESCENT Political Front: IRAQI scholars, both Shia and Sunni, called on members of parliament to end a protracted deadlock over a key election law that threatens to delay polls scheduled for January. In this regard both Shia and Sunni Muslim scholars/Maulvis warned of the security implications of any postponement following two massive bombings which killed 153 people in central Baghdad. Finally Iraqi leaders agreed on a new draft amendment for the upcoming elections after a long period of tensions between main political parties. Despite their mutual agreement on the draft, vote to approve that law got postponed raising fear of election delay among various leaders. After five months of parliamentary election, country is still without government as the negotiations between the majority and the opposition seems to be stuck into a deadlock. PALESTINIAN Resistance Movement, Hamas, stated that the speech on Abbas and his decision not to run for president is considered political bankruptcy. Geo-strategic Front: Egyptian Prime Minister Ahmed Nazif urged south Sudan to vote for unity in a 2011 referendum that will decide whether it becomes independent from Khartoum. Meanwhile Egypt has reiterated its support for the “Comprehensive Peace Agreement”, of 2005 that ended two decades of war between north and south Sudan. Jordan and Syria have agreed to reciprocally exempt their citizens traveling between the two countries via land. Social Front: The Egyptian government’s respect for religious freedom has somewhat declined due to the failure to investigate and prosecute perpetrators of increased incidents of sectarian violence. Lebanese government seems to be seriously inclined to ban smoking. Economic Front:
7
BPM- Weekly Report # 91 Zone 1-Asia
Revenues of Jordan’s exports to Israel have declined by 50% in the first eight months of 2009. TURKEY Political Front: As a result of democratic initiative, PKK members were allowed to return Turkey. This resulted in come back of few of PKK members causing resentment within public and opposition parties. Government therefore halted the process of their return. Many consider it to be the postponement of implementation of democratic initiative in the country. Prime Minister being concerned to resolve this issue has decided to hold summit to discuss Kurdish issue. Military has been accused for planning to intervene in political affairs. Civil society organizations have launched three-day rally against a military plot aimed at undermining the ruling party and a civilian group. In the meantime Turkish PM has denied any chances of early elections and announced to hold elections in time i.e. after completion of four years. Geo-strategic Front: Turkish PM during his visit to Pakistan emphasized greatly on close Pak-Turk ties at all fronts. Meanwhile Turkish cordial ties with Iran also remained prominent. Turkey has even condemned West for its biased attitude towards Iranian nuclear program. TurkishIsraeli ties seem be at lowest ebb. Some 500 pro-Islamic Turks have recently held an antiIsrael protest in Istanbul over violence at a Jerusalem holy site claimed by both Arabs and Jews. All the while Turkish growing ties with Serbia, Kazakhstan, Azerbaijan, Malaysia, Iraq and South Africa remained significant. Besides all that EU lawmakers have started favoring Turkish membership of the EU. However Sudanese President’s planned visit to Turkey has again halted the process as various EU countries have asked Turkey not to grant him permission to enter there. In the meantime EU has also been emphasizing on the need to being peaceful settlement to Cyprus issue in order to become member of EU. Social Front: Increasing death toll of swine flu victims, that has reached 21, led Turkey first to close schools for a week then to start swine flu vaccination in schools for the safety of children. Economic Front: Turkish companies consider Russia and Germany the most attractive international markets to invest in. Turkish exports have increased by 4.62 percent in October over the same month of the previous year, reaching $9.95 billion. Meanwhile inflation figures for basic goods and services in Turkey were at the lowest level in the first nine months of 2009 when compared to figures in recent history.
BUSINESS AND POLITICS IN THE MUSLIM WORLD
8
BPM- Weekly Report # 91 Zone 1-Asia
South Asia Ghashia Kayani Weekly Report: from 18 October to 31 October 2009 Presentation: 4 November 2009
Summary: In Bangladesh at political front BNP secretary general Khandaker Delwar Hossain alleged country's parliament has become a character assassination centre where several sorts of fake and imaginary allegations are being lodged against opposition leaders and activists intentionally. On social front WFP Bangladesh Representative John Aylieff drew attention to the challenge that the government and others have in addressing the affects of malnutrition in the country."Three million children are acutely malnourished and 41 percent of children under five are underweight. At a time when Bangladesh has experienced high levels of economic growth, the acute malnutrition rate has risen progressively and is now above the WHO emergency threshold. At economic front German investors are keen to invest in Bangladesh's gas exploration, renewable energy, bio-gas, coal mining and photovoltaic sectors. The interest was shown when a visiting German Business and Investment delegation led by Peter Clasen. At geo-strategic front As tension continues to mount on the Bangladesh-Myanmar border, Asian giant China, a common friend of the two neighbours has come forward with the suggestion for resolving the dispute between the two countries through negotiations saying ‘War or attack is no solution of any problem. In Srilanka at political front Resettlement and rehabilitation of IDPS will remain top priority of the Government of Sri Lanka. At economic front Deputy Finance Minister Ranjith Siymbalapitiya Loan interest rates of state banks was reduced with immediate effect under the directives of President Mahinda Rajapaksa. Rates have been reduced to a minimum of eight percent and a maximum of 12 percent. At geo-strategic front Sri Lanka Renews 51 Year Old Diplomatic Relationship with Russia TheRussian Foreign Minister pledged that the Russian Federation will be always on the side of Sri Lanka, if in case the international community initiate any covertious move to charge Sri Lanka on any war related crimes.The Russian Foreign Affairs Minister’s visit was expressed as a historic moment, as it was the first ever diplomatic level visit of a Russian Foreign Minister to Sri Lanka. In Maldives at political front The current government’s policies were daunting women’s rights says the main political opposition, Dhivehi Rayyithunge Party (DRP)This was revealed at a press conference held by the president of women’s wing. At economic front Minister of Family and Health Aminath Jameel has said that more than Mrf 13 million has been spent on IGMH development.Minister Aminath Jameel said during Question hour at People’s Majlis. She said that a lot has to be spent from this year’s budget to pay previous years’ unpaid bills. At geo-strategic front In his weekly radio address President Mohamed Nasheed has said Indian companies have expressed interest investing in the Maldives, more specifically in the northern region of the country. President Mohamed Nasheed has met with Prime Minister Manmohan Singh of India, in New Delhi..Discussions were focused on a range
9
BPM- Weekly Report # 91 Zone 1-Asia
of issues, including climate change, economy, and security. Both leaders discussed the importance of a common regional approach on climate change. In Nepal at political front Minister for Irrigation Bal Krishna Khand on Friday said that the government would not remain mute if the Unified CPN (Maoist) continued to proceed with their unlawful and anarchical behaviour. At social front In conjunction with other stakeholders including the Nepal Tourism Board (NTB), the Pacific Asia Travel Association (PATA) is hosting an international conference on adventure travel and tourism on Feb. 1-5, 2010. The conference will feature multiple sessions with deliberations on adventure travel, responsible tourism, adventure sports tourism, zero waste challenge and other issues of sustainable tourism. At economic front The ministerial level meeting of the South Asian Free Trade Area (SAFTA) decided to incorporate service sector in SAFTA and facilitate intra-regional trade. Commerce Minister Rajendra Mahato said that the discussions were zeroed in on the removal of nontariff barriers. At geo-strategic front The Chinese government expressed commitment to increase its grant assistance to Nepal by 50 percent. "The current annual grant assistance to Nepal will be increased to Rs 1.5 billion," Chinese ambassador to Nepal Qiu Guohong said while speaking at programme entitled "The Role of China in Nepal's Economic Development" organized in the capital. In Bhutan at political front Bhutan hosted the three day international conference on “Deepening and Sustaining democracy” (12-14 Oct), jointly organized by the Center for Bhutan studies and UNDP. At geo-strategic front Bhutan is constructing over a dozen hydropower plants with targets to generate some 11,000 MW of power by 2020, all to be absorbed in Indian markets. To all these projects, it is only Indian companies who are investing. In Myanmar at political front A delegation of senior U.S. officials arrived in Myanmar for Washington's highest-level talks with the reclusive military regime in 14 years.The Obama administration's move to engage the junta appears focussed on pushing for free and fair elections next year, although analysts say the rapprochement is as much about geopolitics and the growing regional influence of China. At social front The Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) has honored persons who contributed to the winning of some exhibition-related awards in the recent China-ASEAN Expo held in Nanning, capital of Southwest China' Guangxi Zhuang Autonomous Region, sources with the UMFCCI. At geo-strategic front South Korea's Hyundai Heavy Industries, the world's largest shipbuilder, it has won a US$1.4 billion deal to build an offshore gas platform in Myanmar. It said it secured the order from Daewoo International, a South Korean trading company which is leading a consortium to develop the gasfield off Rakhine state near the border with Bangladesh.
10
BPM- Weekly Report # 91 Zone 1-Asia
Detailed news report: Bangladesh: Political: • •
Parliament has become character assassination centre: Delwar Arrange roundtable of political parties for consensus
Social: • 30,000 children born each year in BD with congenital heart disease • 61 million people living in poverty Economic: • Inflation likely to be double digits by summer: IMF Geo-strategic: • • •
EU to provide increased fund for CHT development programme China for resolving Bangladesh-Myanmar dispute through talks German investors keen to invest in gas, energy and coal sectors
Parliament has become character assassination centre: Delwar BNP secretary general Khandaker Delwar Hossain alleged country's parliament has become a character assassination centre where several sorts of fake and imaginary allegations are being lodged against opposition leaders and activists intentionally. He made this allegation while talking to reporters at his Armanitola residence in the capital on Friday.Khandaker Delwar Hossain said country's parliament has already been made dysfunctional by the ruling party due to the illegal interference on its usual procedure conducted. In order to oust Shaheed president Zia's family members from politics as well as from the country, the government is still hatching conspiracy and it is their main agenda. And thus, Zia's family members have become a target of bitter criticism in the parliament session. Basically, country's parliament has become a centre of character assassination of opposition leaders. He said the government is engaged in destroying the democratic practices in the country. As part of its destruction scheme, interference on country's transparent judiciary system is being made. The ruling party law makers through their speeches during the parliament session are trying to implicate BNP Chairperson and her family members in several sorts of allegations including attack on Awami League law maker Taposh.Khandaker Delwar quoted Awami League law maker Sheikh Fazlul Karim Selim, as saying in the parliament BNP Chairperson Begum Khaleda Zia is yet to make any comment protesting the attack on Taposh as she is involved with the incident. Conspiracy to destroy BNP and Zia's family members is still 11
BPM- Weekly Report # 91 Zone 1-Asia
being hatched which has been proved through the remarks of the ruling party law maker. He said the ruling party has no trust in democracy. When Ershad had come to power through autocracy, the ruling party president Sheikh Hasina said at that time she was not unhappy. The ruling party is believer of dictatorship, whether it is BAKSAL or military backed.Replying to a query, he said BNP is still prepared to extend its helping hands to the ruling party if it stops its repression and oppression on opposition leaders and activists and making fake, baseless and imaginary allegation. "We do politics for the betterment of the countrymen as we believe in democracy," Delwar Hossain added. Arrange roundtable of political parties for consensus BNP secretary general Khandaker Delwar Hossain has urged President Zillur Rahman to arrange a roundtable talks with the participation of all political parties to reach a political consensus that can resolve all sorts of crises in the country.He made the call while addressing a discussion meeting on "scrapping of the 5th amendment and caretaker government system: prospect of Bangladesh" organized by Nagorik Forum at the national Press Club on Wednesday."We are welcoming President Zillur Rahman's calls for consensus on national issues. For the greater interest of the countrymen, unity and consensus among all political parties in the country will have to be forged as it is a must to resolve country's various kinds of crises. If the President takes step to arrange a roundtable discussion openly with the participation of all parties only then a political consensus might be formed," Delwar Hossain expressed his hope. About the caretaker government system, he said the ruling party was very sincere to the system of caretaker government once but why its attitude about the system has been changed. With a view to enjoying state power for long, the ruling party is seeking foreign cooperation which will be resisted by the nationalist forces. He urged the government to stop corruption throughout the country and minimize the gap between rich and poor people, otherwise steps to eradicate poverty will not bring any good result for the nation.Former chairman of Transparency International Bangladesh Trustee Board Professor Mozaffar Ahmed said the 5th amendment of the constitution will never be erased as country's President and Prime Minister and all ministers are still saying Bismillahir Rahmaner Rahim before starting their speeches which are also being published through newspaper. UNB adds: Defending the 5th constitutional amendment, BNP leader said it was done to restore multi-party system and rule of law. If the amendment is annulled now, 4th amendment will be restored automatically to take the nation 38 years back to one-party system.The people will not accept restoration of the 72 constitution with secularism as state principle, he added. 30,000 children born each year in BD with congenital heart disease Prime Minister Sheikh Hasina is scheduled to open an international conference on child heart ailment in the city today (Saturday), in an attempt to focus more on ensuring child survival in achieving millennium development goal (MDG)-4.The conference, first of its kind in Bangladesh, is expected to bring together 650 pediatricians and cardiologists from the United Kingdom, Singapore, Saudi Arabia, Pakistan, India and China to discuss the existing treatment practices, innovations in the filed over the last few years and devise 12
BPM- Weekly Report # 91 Zone 1-Asia
effective ways to cut child mortality and morbidity from birth defects.Pediatric Cardiac Society of Bangladesh (PCSB), the organizer of the three-day event, said an estimated 30,000 children born each year in Bangladesh with congenital heart diseases, 90 percent of them die, mainly due to low level of awareness among doctors and parents as well as lack of proper treatment in Bangladesh.He said the children of pregnant mothers, who have smoking habits, uncontrolled diabetes and are exposed to radiation and x- ray, were more susceptible to congenital heart disease, also a leading cause of heart problems when children become adults. Prof Manzoor Hos-sain, secretary general of PCSB, told BSS on Friday that 40 percent of perinatal deaths occur within one week of childbirth due to congenital heart disease, also a leading cause of the highest number of child deaths born with birth defects."Taking drugs from pharmacies or quacks at will during pregnancy is also jeopardizing the lives of many newborns in Bangladesh," added Prof Manzoor, who is also the head of Pediatric Cardiology Department of Dhaka Shishu Hospital (DSH), the lone specialized child hospital in South Asia where only 10 beds are kept for heart treatment.Prof Manzoor said the cardiac treatment has progressed a lot in the country over the last two decades, but the facilities for childhood cardiac problem has remained almost the same. He said he himself could not do much for children with congenital heart ailment at Shishu Hospital as patients have to refer to the National Institute of Cardiovascular Diseases (NI-CVD) for any surgery.According to available sources, the NICVD and the Heart Foundation are the only places for treatment of such children in the public sector, while expensive services are available at some big hospitals in the private sector like Apollo. The surgery of a child requires a few hundred thousand Taka.BCSB sources, however, said the situation is likely to change in a couple of years as Prime Minister Sheikh Hasina has already instructed to introduce pediatric heart surgery facilities at all public medical colleges and medical university. Sheikh Hasina is likely to make a few more announcements on it today (Saturday), it hoped. Inflation likely to be double digits by summer: IMF The prices of essentials would continue to rise throughout the current fiscal year with a possibility to push up the inflation to double digits by the summer.The concern came from a preliminary assessment of a visiting mission from the International Monetary Fund on the country's economy. The mission concluded on Thursday. The mission, led by IMF Advisor for Asia and Pacific Department Masato Miyazaki, raised the concern in the wake of "ample availability of liquidity" in the money market.They also expressed concern over increased subsidy on energy and fertilizer, slowed down investment and poor ADP implementation. The mission appreciated the country's success in "remarkably" weathering the global economic recession due to strong exports and remittance, but apprehended that the GDP growth is likely to decelerate to around 5 percent at the end of the current fiscal year."We'll manage the inflation (as predicted by the IMF)," Finance Minister AMA Muhith told reporters after a meeting with the mission at the Finance Ministry. He expressed confidence that the GDP would strike a 6 percent growth or more. Prime Minister's Adviser on Economic Affairs Dr Mosihur Rahman, Bangladesh Bank Governor Dr Atiur Rahman and Finance Secretary Dr Mohammed Tareq were present. "Subsidy will continue where it's necessary. We'll not provide subsidy where it is not necessary," Muhith said. He added that investments have been 13
BPM- Weekly Report # 91 Zone 1-Asia
slow, but would pick up soon. Replying to a question over subsidy on energy and power, he said: "It' s a problem. It'll have to be there on the table."Addressing a press briefing at the Bangladesh Bank after "Preliminary Conclusion of the IMF Mission" under the Article IV Consultation, IMF Advisor Miyazaki said the recovery trend of the global recession would not be too strong, which would slow down private sector credit and decelerate GDP to around 5 percent. He, however, said the Bangladesh economy would pick up and continue to grow better than other countries, particularly the regional ones. 61 million people living in poverty Staffan de Misture, deputy executive director of the United Nations World Food programme (WFP) will arrive on a three-day official visit.The purpose of de Mistura's visit is to meet the government and the donor community and discuss how best the WFP can support the government's efforts to meet the Millennium Development Goals and address the most pressing development challenges, including the effects of climate change and high levels of malnutrition. Both the issues are having a crippling affect on the estimated 61 million people living in poverty and which struggle to meet their basic food requirements on a daily basis, said a press release on Friday.In announcing the visit, WFP Bangladesh Representative John Aylieff drew attention to the challenge that the government and others have in addressing the affects of malnutrition in the country."Three million children are acutely malnourished and 41 percent of children under five are underweight. At a time when Bangladesh has experienced high levels of economic growth, the acute malnutrition rate has risen progressively and is now above the WHO emergency threshold. Working with the government and other partners, WFP will contribute to bringing both acute, chronic and micronutrient malnutrition down for good". Said Aylieff. "De Mistura visits Bangladesh at a significant time in WFP's 35 year history in country, as the UN agency embarks on a process to develop a new country strategy to address the effects food insecurity in the country," he added.It is expected that WFP will build its new strategy around a vision that includes, a focus on livelihoods, an expanded school feeding programme, a high emphasis on nutrition focused programmes as well as assisting the population prepare and cope with the effects of climate change. "Bangladesh is widely recognised as one of the countries most susceptible to the effects of climate change. WFP has been assisting the government in climate change adaptation activities long before the term was even coined, making us natural adaptation partners. Over the last 35 years this partnership has built 43,000 km of roads and embankments, excavated 4,000 km irrigation canals and planted in excess of 38 million trees," said Aylieff. EU to provide increased fund for CHT development programme European Union will increase funding in Promotion of Development and Confidence Building including an additional 15.5 million euro in support of further improvements in health and education sector in the Chittagong Hill Tracts. According EU sources the EU has also committed 7.5 million euros for food security and agricultural support.The sources said the project has led the EU to increase the funding for the development of CHT. The development of confidence building in CHT was initiated four years back to help underpin the CHT peace accord by supporting the government and local institutions. 14
BPM- Weekly Report # 91 Zone 1-Asia
The United Nations Development Programme (UNDP) is implementing the programme in all three hill districts with overall aim of promoting self reliance, decentralization and sustained peace. The EU, largest donor of the project, is contributing 23.5 million euro towards the project. The project completed its first [phase in December 2006 and expected to complete it second phase in November 2009. With successful implementation of the last five years of the programme basing on the upcoming evaluation it is expected that the programme will continue during the period of 2011 to 2015 through a contribution of 25 million euros by the EU.The sources said in addition to this the EU is also funding development work by local and international non government organisations in the CHT region including tribal children's education contributing 7,50,000 euros, vocational training for indigenous people 2,50,000 euros and a community-managed water supply and sanitation programme for the rural poor . China for resolving Bangladesh-Myanmar dispute through talks As tension continues to mount on the Bangladesh-Myanmar border, Asian giant China, a common friend of the two neighbours has come forward with the suggestion for resolving the dispute between the two countries through negotiations saying ‘War or attack is no solution of any problem.’The Chinese views were expressed by its Ambassador in Dhaka Zhang Xianyi at a programme in the capital on Thursday. The envoy also assured Bangladesh of Chinese assistance for developing road and communications. He said China is looking to import tea to reduce trade gap.According to UNB: China wants Bangladesh to resolve its disputes and disagreements with Myanmar on issues such as maritime boundary through peaceful negotiations, new Chinese Ambassador Zhang Xianyi said here on Thursday."It's quite natural having disputes and disagreements with neighbours. We hope you will solve your problems through bilateral negotiations at the negotiation table," he said at Meet-the-Reporters program at Dhaka Reporters Unity (DRU).He said his observation is that Bangladesh and Myanmar did have negotiations on the issues this year. "I am confident that with good attitude from both the sides, all problems will be resolved." The Chinese envoy replied to a volley of questions on current developments in regional and international arenas as well as bilateral political and economic cooperation between Dhaka and Beijing during an hour-long interaction. DRU President Shamim Ahmad was in the chair while general secretary Pathik Saha made introductory remarks. German investors keen to invest in gas, energy and coal sectors German investors are keen to invest in Bangladesh's gas exploration, renewable energy, bio-gas, coal mining and photovoltaic sectors. The interest was shown when a visiting German Business and Investment delegation led by Peter Clasen, Head of the Bangladesh section of the OVA-Asia-Pacific Business Association, paid a courtesy call on Prime Minister Sheikh Hasina at her office here on Wednesday.During the meeting, the German delegation apprised the Prime Minister that they have special interests to invest in Bangladesh as favourable investment environment is presently prevailing in the country 15
BPM- Weekly Report # 91 Zone 1-Asia
under the present democratic government. "Our interest to invest in Bangladesh is increasing day by day as there exists excellent business opportunity. We are ready to start business in Dhaka and Chittagong," they added. Briefing newsmen after the meeting, Prime Minister's Press Secretary Abul Kalam Azad described the meeting as "fruitful" where expansion of trade and business between the two countries was widely discussed. The German business delegation also expressed their willingness to impart training to the Bangladeshi farmers and agriculture experts on producing organic food, providing their support in communications and solar power generation. During the meeting, they lauded the Prime Minister's visionary leadership and her bold and prudent representation in different international fora. Reciprocating to German delegation's gesture, the Prime Minister urged the German entrepreneurs to invest more in Bangladesh, assuring them of providing all out support to this end.She urged Germany to import pharmaceuticals and ceramics goods from Bangladesh saying these are quality Bangladeshi products with international standards.
Srilanka: Political: • Resettlement and rehabilitation of IDPS will remain top priority of the Government of Sri Lanka Social: •
Northern Province Receives 41 IT Laboratories
Economic: • State Banks Reduced Loan Interest Rates with Immediate Effect Geo-strategic: • Nepal Prez gets invite for Sri Lanka visit • UNHCR in Sri Lanka to work towards promoting Children’s future • Sri Lanka Renews 51 Year Old Diplomatic Relationship with Russia • India experts to help speed up demining in Lanka
Resettlement and rehabilitation of IDPS will remain top priority of the Government of Sri Lanka Children in Lumbini welcome President Mahinda Rajapaksa and First lady Shiranthi Rajapaksa when they visited the birth place of lord Buddha at Lumbini on 30thThe Nepalese leaders congratulated President Rajapaksa on the defeat of the LTTE and elimination of terrorism in Sri Lanka and re-affirmed their solidarity with the Government and People of Sri Lanka.Sri Lanka President Mahinda Rajapaksa undertook 16
BPM- Weekly Report # 91 Zone 1-Asia
a 3 day Official Visit to Nepal from 29th – 31st, October 2009 at the invitation of his Nepalese counterpart Dr. Ram Baran Yadav. Sri Lankan leader appraised the Nepalese leaders the current developments in the country in particular on the ongoing rehabilitation and re-construction process.President said that the ongoing rehabilitation and reconstruction process and has been and will be the priority of the Government of Sri Lanka. Mahinda Rajapaksa said that the number of IDP’s has been brought down to 180, 000 as of 27 October, 2009 from the original figure of 280,000 as a result of the commitment and the well coordinated resettlement programmes undertaken by the Government in collaboration with the UN according to international standards.President Mahinda Rajapaksa with Dr.Ram Baran Yadav President of Nepal Earlier, on arrival President Rajapaksa and the delegation were accorded an official welcome and received by the Deputy Prime Minister and Minister for Foreign Affairs of Nepal Sujata Koirala, Minister for Constituent Assembly, Federal Affairs, Parliamentary affairs and Culture Dr. Minendra Rijal and the Nepalese Ambassador to Sri Lanka His Excellency Durga Prasad Bhattarai at the Tribhuwan International Airport.During the visit, President Rajapaksa held discussions with President Ram Baran Yadav and Prime Minister Madhav Kumar Nepal. Former Prime Minister and Chairman of Unified Communist Party-Maoist Puspha Kamal Dahal [Prachanda] and Deputy Prime Minister and Minister for Foreign Affairs of Nepal Sujata Koirala called on the President. Northern Province Receives 41 IT Laboratories Social Services and Social Welfare Minister Douglas Devananda and Northern Province Governor Major General (retired) G.A. Chandrasiri handing over a computer to a principal at the functionForty one computer laboratories have been set up in the Northern Province under the government’s accelerated infrastructure development process.These Information Technology laboratories were received under a project to set up 1000 IT Laboratories Island wide as President Mahinda Rajapaksa pledged in his Mahinda Chinthanaya. Further, the government has also named the year 2009 as the year of English and Information Technology.Thirty three IT laboratories out of 41 have been set up in the Jaffna district, whilst the rest are to be set up in the Vavuniya and Mannar districts, an official from the Education Ministry revealed. State Banks Reduced Loan Interest Rates with Immediate Effect Deputy Finance Minister Ranjith Siymbalapitiya Loan interest rates of state banks was reduced with immediate effect under the directives of President Mahinda Rajapaksa. Rates have been reduced to a minimum of eight percent and a maximum of 12 percent with effect from today.The previous interest rates applied was a minimum of 15 percent and a maximum of 22 percent.Deputy Finance Minister Ranjith Siymbalapitiya speaking to the Asian Tribune said that the Government’s aim is to make more opportunities for general public to attend to their day to-day activities with confidence, with the assistance of the state banks. “While people began to continue their transactions with the state banks, such banks could directly join in the process of strengthening the country’s economy, “ the Deputy Minister added. He said that the President has directed all state bank heads to cut down the interest rates applying the new rule even for the loans already
17
BPM- Weekly Report # 91 Zone 1-Asia
issued. Also penalty payments imposed by state banks for non-payment of loan installments have also been cut with immediate effect. Nepal Prez gets invite for Sri Lanka visit and officials at Lumbini Development Trust had reached to Lumbini to welcome the Sri Sri Lanka President Mahinda Rajapaksa met Dr.Ram Baran Yadav President of Nepal at Rastrapathi BhavanThe visiting Sri Lankan President Mahinda Rajapaksa has invited his Nepali counterpart Dr Ram Baran Yadav to visit Sri Lanka.President Rajapaksa extended the invitation during his meeting with Dr Yadav on Friday afternoon. “President Rajapaksa has invited Dr Yadav to come to Sri Lanka at the time of convenience,” said his press advisor Rajendra Dahal.Mahinda Rajapaksa and the Sri Lanka delegation was received by Nepal Prime Minister Madhav kumar President Dr Yadav has not gone for foreign visit yet even as he received invitation from neighboring India shortly after he was elected as president last year.Prior to the meeting with his Nepali counterpart, President Rajapaksa visited Lumbini, the birth place of Lord Buddha. He had reached Lumbini at National Standard Time 10:45 am through a Nepal Army helicopter and stayed there till NST 2:15 pm.Besides offering prayers in Maya Devi Temple, President Rajapaksa inaugurated a Vihar built by Sri Lankan government. The president also inspected Sri Lankan Pilgrims Rest House built there for visiting Sri Lankan pilgrims and planted a tree sapling in the temple premise.Talking briefly to media persons, President Rajapaksa said he had a long cherished desire to visit Lumbini since his childhood and that the desire had come true with the visit.President Rajapaksa said the responsibility for the development of Lumbini area was not of Nepal alone but also of other countries including Sri Lanka. He said that the number of Sri Lankan pilgrims visiting Lumbini will see sharp increase from the annual average of 40,000 now.On the occasion, the president donated USD 1 million for the developmentof Lumbini area.Local administration had made special security arrangement in and around the temple keeping in view of the president’s visit. Hundreds of Nepal Army (NA), Armed Police Force and Nepal Police personnel were mobilized in the area.Minister for Culture and Constituent Assembly Affairs Dr Minendra Rijal, senior government officials Lankan President.President Rajapaksa also held meeting with Prime Minister Madhav Kumar Nepal and attended a dinner hosted by the prime minister in his honor on Friday evening. UNHCR in Sri Lanka to work towards promoting Children’s future The new UNHCR representative to Sri Lanka assured to work towards promoting the welfare of the children.Mr. Michael James Zwack who recently assumed duties as the Representative for the UNHCR in Colombo called on Foreign Minister Rohitha Bogollagama at the Ministry of Foreign Affairs on 28th October 2009 and presented his letter of appointment. During the call on Minister Bogollagama, Mr. Zwack reiterated the commitment of the UNHCR to work in close coordination with the Government of Sri Lanka.Responding to Mr. Zwack, Foreign Minister Bogollagama stated that though it has only been a few months since the conflict came to a close, the Government of Sri Lanka first began the resettlement process of the IDPs within three months. The Minister also stated that the number of the IDPs had reduced to about 188,535 as at 27th October 2009
18
BPM- Weekly Report # 91 Zone 1-Asia
and pointed out that those being resettled were also provided with various assistance such as dry rations and cash benefits, in order to ease this process.He also mentioned the assistance provided by the Government of Sri Lanka to the children who were being resettled at the welfare villages to continue their education. Endorsing the views expressed by Minister Bogollagama, Mr. Zwack stated that children were the future and that the UNHCR would work towards such goals. Sri Lanka Renews 51 Year Old Diplomatic Relationship with Russia TheRussian Foreign Minister pledged that the Russian Federation will be always on the side of Sri Lanka, if in case the international community initiate any covertious move to charge Sri Lanka on any war related crimes.The Russian Foreign Affairs Minister’s visit was expressed as a historic moment, as it was the first ever diplomatic level visit of a Russian Foreign Minister to Sri Lanka. The Russian Foreign Minister held discussions with President Mahinda Rajapaksa and his counterpart - Sri Lanka’s Foreign Minister Rohitha Bogollagama, before his departure last night.During the discussions, Foreign Minister Bogollagama conveyed the appreciation of the Government of Sri Lanka to the Russian Federation for the unstinted support during Sri Lanka’s fight against terrorism.The Foreign Minister stated that the Russian Federation had, throughout Sri Lanka’s challenge against terrorism, been one of the closest allies by being consistent with its support politically on the need to interdict and neutralize terrorist activities in Sri Lanka. He said this support was reflected not only in the condemnation of heinous terrorist acts by the LTTE but also through policy support and tangible measures. Foreign Minister Bogollagama pointed out that this was done despite the informal pressures which may have been exerted by some misguided entities in the international community against provision of such support to Sri Lanka. He also noted with thanks the Russian Federation’s assistance in addressing the post conflict challenges which includes the provision of relief items and US$500,000 through UNHCR. Foreign Minister Bogollagama also stated that in view of the importance human rights issues have gained in the international arena, Sri Lanka and the Russian Federation had a frank exchange of views and it was recognized that all countries were not equal players in the field of human rights, since the dictates of some countries get overriding positions to the point of creating double standards. This, the Foreign Minister said, could be a culmination of some members of the international community unwittingly becoming pawns of groups with misplaced vested interests. Foreign Minister Bogollagama further stated that the two countries were of the view that the international community should alleviate themselves from such machinations and act in accordance with ground realities.The two Ministers also addressed issues concerning the global economic downturn which has affected all the countries. In this context, the discussion of the two Foreign Ministers focused on the necessity for concerted coordinated partnerships, across regions, to overcome the current hiatus and to place structures in place to prevent a future repetition of what we have been experiencing for the past year. Foreign Minister Bogollagama also placed on record Sri Lanka’s appreciation to the offer made by the Russian Federation for the state credit line of US$.300 Million. The two Foreign Ministers also discussed ways and means of furthering economic cooperation and the possibilities of enhancing trade and economic
19
BPM- Weekly Report # 91 Zone 1-Asia
relations while potential for the trade of products such as rubber and rubber based products, gems and jewellery, carbon, coconut and coconut based products, tea, steel, graphite, fisheries, wood based products and pharmaceutical products were recognised.Yesterday two agreements were also signed between Sri Lanka and the Russian Federation - one was on the ‘Cooperation to Suppress Illicit Traffic in and Abuse of Narcotic Drugs and Psychotropic Substances”, and the second one (MoU) on the “Prevention of Natural Disasters and Mitigation of their Consequences. ” The first one was signed by the two Foreign Ministers, while the second agreement was signed by the Russian Ambassador in Sri Lanka Vladimir P. Mikhailov and Acting Secretary of the Disaster Management and Human Rights Ministry G.D.K. Amarawardena. Foreign Minister Lavrov addressing the Sri Lankan media said that approximately 20 Russian based companies are established in Sri Lanka. He also said that Russia’s interest in oil exploration in the Mannar bay and the rehabilitation of the Sapugaskanda oil refinery in the immediate future. The expansion of economic ties between two countries with several identified trade and investment fields were also noted by the Foreign Minister.Two Foreign Ministers also discussed ways and means of implementing and improving the Air services and tourist programs between two countries. Further, they have also discussed on the aspect of economic cooperation and the possibilities of enhancing trade and economic relations while potential for the trade of products such as rubber and rubber based products, gems and jewellery, carbon, coconut and coconut based products, tea, steel, graphite, fisheries, wood based products and pharmaceutical products. India experts to help speed up demining in Lanka Indian Prime Minister Manmohan SinghPrime Minister Manmohan Singh has directed the Defence Minister to send a team of experts to Sri Lanka to help in speeding up removal of mines in the war-ravaged Mannar, Killinochi and Mullaitivu districts to pave the way for speedy resettlement of uprooted Tamils now living in make-shift camps in Vavunia.This was stated here on Saturday by Tamil Nadu Congress Committee president K V Thangabalu who accompanied the team of DMk and Congress MPs from Tamil Nadu when they went to New Delhi last week to brief the Prime Minister and Congress president Sonia Gandhi about the outcome of their visit to Sri Lanka.Mr Thangabalu said that the team submitted a detailed report on Friday to Dr Singh and Mrs Gandhi, seeking India's help for the rehabilitation and resettlement of the displaced Tamils.Following the team's visit, Sri Lankan President Mahinda Rajapaksa agreed to send home 58,000 displaced Tamils in a fortnight. Already over 40,000 have been sent back. Mr Thangabalu said that soon after the team's meeting with him, Dr Singh asked the Defence Minister to send a team of demining experts to Sri Lanka. The Indian government also spoke to Basil Rajapaksa, advisor to President Rajapaksa, to send a team to India to discuss how to utilise the assistance given by India for the resettlement of internally displaced persons, he said. Maldives: Political: • Government policies daunting women’s rights – DRP
20
BPM- Weekly Report # 91 Zone 1-Asia
•
MDP passes a resolution against DRP actions
Social: • Over Mrf 13 million spent on IGMH development Economic: • Law to be made on agricultural land • Indian companies to invest in Maldives – President
Geo-strategic: • President meets diplomats from Uganda, Egypt • Egypt to assist Maldives in education sector • President Nasheed meets Indian PM • Maldives supports recommendation in Goldstone’s report on Gaza Conflict Government policies daunting women’s rights – DRP The current government’s policies were daunting women’s rights says the main political opposition, Dhivehi Rayyithunge Party (DRP)This was revealed at a press conference held by the president of women’s wing of DRP Ms Azima Shukoor. Azima said that in the past a lot of successful work had been undertaken to protect and promote women’s rights in the country. She added that now, women’s rights were going backwards.She said that women’s position in the society and women’s rights was going backwards when a lot of work was done to promote women’s rights, and when a lot of developments were achieved in this direction in the past.Giving her reasons for saying this, Azima said that since present government came to power, Ministry of Gender was terminated. Besides this, she said that working women faced a lot of problem because working hours of civil service employees was changed and also increasing the visa fees of foreign maids created problems for women. In addition to this she pointed out the termination of 210 women employees of women’s mosques in the country was not about 210 women, but 210 families who were associated with these women would be affected by this decision. Azima said that this showed that women were not included in the priority list of the government. MDP passes a resolution against DRP actions Maldives Democratic Party’s (MDP) national council has passed a resolution on Tuesday to undertake a nationwide protest against the main opposition, Dhivehi Rayyithunge Party (DRP).The resolution was passed to undertake a nation wide protest against DRP and its political allies, who, MDP says, was abusing DRP’s power in the People’s Majlis and also was trying to threaten a cabinet minister by initiating a no- confidence motion against him in the Majlis. The purpose of this proposed nation wide protest, according to the resolution, was also to protect and maintain the government which was lawfully 21
BPM- Weekly Report # 91 Zone 1-Asia
elected by the people of the country.In the emergency council meeting held on Tuesday evening, this resolution was submitted to the council by Madaveli constituency member of Majlis Mohamed Nazim. The resolution was passed with the unanimous support of all the members who attended the meeting.DRP/PA had submitted for a no confidence motion against Minister of Foreign Affairs Dr Ahmed Shaheed on Tuesday. According to the opposition alliance the main reason they were doing this was because Dr Shaheed was responsible for the government’s decision to normalize relations with Israel. Over Mrf 13 million spent on IGMH development Minister of Family and Health Aminath Jameel has said that more than Mrf 13 million has been spent on IGMH development.Minister Aminath Jameel said during Question hour at People’s Majlis. She said that a lot has to be spent from this year’s budget to pay previous years’ unpaid bills.“More than Mrf 13 million has been spent for machinery. Last month we installed a CT scan machine. We have paid 50% of the payment for this machine which costs Mrf 9 million.”she said.Health Minister said that besides a CT scan machine, a machine for testing H1N1 virus has been brought to Maldives and because of this, test for H1N1 virus can be done in the country.Minister Aminath Jameel further noted that the Ministry was facing difficulties and obstacles due to inefficient policies practiced previously. She said that even now an anesthetic machine is sitting in a storage facility since 2006 and that a lot of many was spend for this machine as well. Law to be made on agricultural land Minister of Fisheries and Agriculture Dr Ibrahim Didi has said that work is in progress to compile a law on agricultural land.Speaking at a press conference held yesterday Agriculture minister Dr Didi said that to conduct this work, an expert from Food and Agriculture Organization (FAO) came to Maldives last week and had prepared a questionnaire for this purpose. In addition to this, discussions had been held with farmers, organizations and office officials of islands where agricultural activity is undertaken extensively. Minister Didi said that in order to acquire additional information on this matter, 4 teams from his ministry had been sent to 4 regions of the country, that is, Seenu, Alif Alif, Haa Alif and Haa Dhaal Atolls. Indian companies to invest in Maldives – President In his weekly radio address President Mohamed Nasheed has said Indian companies have expressed interest investing in the Maldives, more specifically in the northern region of the country.The President said he was very confident of one of those companies would invest in the work of upgrading Hanimaadhoo airport to an international airport. The President also revealed that another company was also interested in investing in a transshipment port in the northern region.The government was hopeful of reaching agreements with the interested companies in the near future.In his radio address, the
22
BPM- Weekly Report # 91 Zone 1-Asia
President highlighted the excellent bilateral relationship between India and the Maldives.The President said: “Since the new government assumed office, we have been strengthening the relationship to the utmost benefit of the Maldivian people.”The President, in his radio address, said India was also ready to assist the Maldivian government in alleviating its dollar shortage.Earlier this year, the Indian government provided US$100 million credit facility to assist the Maldives meet budget difficulties.Prime Minister Manmohan Singh has also earlier assured Indian assistance in the Maldives’ effort to seek funds from the International Monetary Fund and the World Bank to address budget deficit and restructuring the public sector.The President also underscored India was ready to assist in the democratic consolidation process in the Maldives and that India has always given the assurance of protecting democracy in the Maldives.Continuing his radio address, the President also spoke on the Indo-Maldives border-surveillance cooperation.He said Indian assistance in border patrolling and surveillance was crucial to free its waters of illegal fishers.“The government’s goal was to ensure that it is Maldivian fishermen who fish in its waters, and benefit from them,” said the President.This news comes at a crucial time when Somalian pirates hijacked a Chinese carrier between Seychelles and Maldives and also when two illegal Iranian fishing boats were seized in the Maldivian EEZ last week. Minister of State for Defense and National Security Mohamed Muiz Adnan said in an interview given to Miadhu Daily that these two illegal fishing boats were seized so easily because Maldivian Coast Guards had the assistance of Indian Navy. President meets diplomats from Uganda, Egypt The new High Commissioner of Uganda to the Maldives, Ms Nimisha Jayant Madhwani and the new Eyptian Ambassador to the Maldives, Mr Fawzi Mohammed El Said Gohar presented their credentials to President Mohamed Nasheed yesterday. The presentation of their Letters of Credentials was held this morning at the President’s Office.After the presentations, the President met with the two diplomats separately and discussed ways of strengthening bilateral ties between the Maldives and the respective countries.The diplomats noted and applauded the important role that President Nasheed has played in promoting awareness on environmental issues in the global arena.The Ugandan High Commissioner discussed with the President on ways of strengthening the relations between the Maldives and Uganda through enhanced cooperation in fields of trade and tourism. Egypt to assist Maldives in education sector Eyptian Ambassador to the Maldives, Mr Fawzi Mohammed El Said Gohar has said that Egypt will grant assistance to Maldives in providing education not only in Islamic studies but also in other educational fields.He said this speaking at a meeting held in Ministry of Islamic Affairs yesterday. Egytian Ambassador Gohar said that Egypt is not a country that teaches only Islamic education. That besides that Egypt offered study programs in engineering, medicine and agriculture as well. He said he will work to get placements for
23
BPM- Weekly Report # 91 Zone 1-Asia
Maldivian students in Egyptian educational institutions.“I have spoken to President Nasheed today. I hope even the government of Maldives will try to use these opportunities provided in Egypt.”said the Egyptian Ambassador.Minister of State for Islamic Affairs Mohamed Shaheem Ali Saeed said that as usual Maldives has been given 6 placements in Azhar University even this year. Shaheem said that this was a small number and hoped that this will increase in the coming years. President Nasheed meets Indian PM President Mohamed Nasheed has met with Prime Minister Manmohan Singh of India, in New Delhi..Discussions were focused on a range of issues, including climate change, economy, and security. Both leaders discussed the importance of a common regional approach on climate change.Earlier today Prime Minister Singh and President Nasheed addressed a climate conference in New Delhi.In the meeting, Dr Singh commended President Nasheed’s speech at the conference.The Prime Minister described President Nasheed as an “untiring champion of global cooperation to address the formidable challenge of climate change”.They also discussed the global economic recession and its impact on the Maldives. Prime Minister assured of Indian assistance for the Maldives’ budgetary and economic difficulties.India provided US$100 million to alleviate budget difficulties in the Maldives.During the meeting, Prime Minister Singh also assured the President of Indian support to consolidate democracy in the Maldives.President Nasheed underscored the importance of Indian assistance in coastal security and surveillance in the Maldives.He said piracy posed a threat to the Maldives and that the Maldives needed to free its waters from illegal fishing.India has already provided radars to the Maldives.After the talks, President Nasheed participated in a lunch hosted by the Prime Minister of India. Maldives supports recommendation in Goldstone’s report on Gaza Conflict Ms. Shazra Abdul Sattar, Chargé d’Affaires a.i. at the Maldives Mission to the UN in Geneva has welcomed the report compiled by Justice Richard Goldstone on recent Gaza Conflict and its findings. She also noted that the Maldives “supports the recommendation, contained in the Goldstone report, that all alleged violations by both sides in the conflict be independently investigated and that those investigations together with any subsequent prosecutions, be monitored by the Security Council”.The Maldives also used its statement during the Special Session to express concern at the rapid expansion in Israeli settlement activity in the West Bank and at reports of settler violence against the Palestinian population – violence which usually takes place with impunity. “The Maldives believes that settler activity in the Occupied Palestinian Territory not only represents a flagrant violation of international humanitarian and human rights law, but also represents a key obstacle to the achievement of long-term peace and security in the region. The Maldives therefore takes this opportunity to call for an immediate freeze in all settlement activity, as a vital precursor to the resumption of comprehensive peace talks” concluded Ms. Abdul Sattar.The United Nations Human Rights Council on Friday ended a Special Session on the situation of human rights in Palestine by adopting a
24
BPM- Weekly Report # 91 Zone 1-Asia
Resolution welcoming the recent report of the UN Fact Finding Mission on the Gaza Conflict, and fully endorsing the recommendations contained therein including that all alleged violations by both sides in the conflict be independently investigated and that those investigations together with any subsequent prosecutions, be monitored by the Security Council.The United Nations Fact Finding Mission on the Gaza Conflict, led by Justice Richard Goldstone, was tasked by the Council “to investigate all violations of international human rights law and international humanitarian law that might have been committed at any time in the context of the military operations that were conducted in Gaza during the period from 27 December 2008 and 18 January 2009, whether before, during or after”. The conflict led to over 1,400 deaths – mainly civilian.The Goldstone report concluded that serious violations of international human rights and humanitarian law were committed by both Israel and Palestinian armed groups during the Gaza conflict and that there is also evidence that both parties committed war crimes, as well as possibly crimes against humanity.Responding to the report, Palestine, with the support of the Organisation of Islamic Conference, and the Non-Aligned Movement, both of which include the Maldives as a member, convened a Special Session in order to agree next steps. The resolution tabled: “condemns the non-cooperation by the occupying power, Israel, with the independent international fact-finding mission; welcomes the report of the Independent International Fact-Finding Mission; fully endorses the recommendations contained in the report, and calls upon all concerned parties including UN bodies, to ensure their immediate implementation in accordance with their respective mandates”. The resolution was adopted by the Council with 25 in favour, 6 against and 11 abstentions. Nepal: Political: • Govt ready to counter Maoists: Khand Social: • Nepal to host int'l conference on travel and tourism Economic: • NC CC fails to finalise statute draft before Mahasamiti meeting • SAFTA to incorporate service trade • NEPSE bans 19 companies • Finance Minister hopeful about budget getting approved from parliament Geo-strategic: •
China to increase its assistance to Nepal by 50 pc
Govt ready to counter Maoists: Khand
25
BPM- Weekly Report # 91 Zone 1-Asia
Minister for Irrigation Bal Krishna Khand on Friday said that the government would not remain mute if the Unified CPN (Maoist) continued to proceed with their unlawful and anarchical behaviour.While talking to reporters, Khand, who is from the Nepali Congress, warned, "The government will launch stringent actions against the Maoists if they try to spread anarchy and act violently."Defence Minister Bidhya Bhandari has also already warned of army mobilisation to counter the Maoist protests if they grew violent during their protests beginning Sunday.Khand also warned that the Maoists would be wiped out if they were harbouring desire to impose totalitarianism through violence. Nepal to host int'l conference on travel and tourism In conjunction with other stakeholders including the Nepal Tourism Board (NTB), the Pacific Asia Travel Association (PATA) is hosting an international conference on adventure travel and tourism on Feb. 1-5, 2010. The conference will feature multiple sessions with deliberations on adventure travel, responsible tourism, adventure sports tourism, zero waste challenge and other issues of sustainable tourism.PATA is said to have received important backing from two influential organisations - Adventure Travel Trade Association (ATTA) and the International Union for Conservation of Nature (IUCN) - for its 2010 Adventure Travel Mart.According to Prachanda Man Shrestha, CEO of NTB, the conference would act as an important platform for tourism stakeholders to discuss and promote environmental protection and social sustainability.
NC CC fails to finalise statute draft before Mahasamiti meeting Nepali Congress (NC) Central Working Committee (CWC) did not finalise the amendment draft of the party statute before the Mahasamiti meeting, slated to begin Sunday, after CWC members failed to reach consensus.The CWC has decided to table the dispute at the Mahasamiti meeting for discussion. A CWC meeting held Saturday, one day before the beginning of the Mahasamiti meeting, failed to finalise the draft after some CWC members including acting president Sushil Koirala were adamant on their stance that the party President should be given authority to appoint some of the office bearers in the new statute.Most CWC members are for electing all the office bearers through election and making the president a ceremonial figure.NC Mahasamiti meeting is beginning Sunday in Kathmandu. The Mahasamiti meeting was called despite vehement opposition from party president Girija Prasad Koirala, to finalise the party's amended statute and clarify its position on some key issues of the new constitution.NC is preparing to transform itself to a multi-post leadership model scrapping the presidential model it had been following since decades ever since its inception more than fifty years ago. The statute will be tabled at the general convention next year for final approval. SAFTA to incorporate service trade The ministerial level meeting of the South Asian Free Trade Area (SAFTA) decided to incorporate service sector in SAFTA and facilitate intra-regional trade. Commerce
26
BPM- Weekly Report # 91 Zone 1-Asia
Minister Rajendra Mahato said that the discussions were zeroed in on the removal of nontariff barriers. The meeting has also fixed the timetable to shorten the list of sensitive products, reduction of customs duty and enforcement of service trade.The service sector will be officially included in SAFTA during the 16th SAARC summit to be held in Bhutan in April 2010. The experts group will finalise the preamble of the agreement on service trade, mode of services and the schedule of commitments before 16th SAARC summit. In a linear fashion, the meeting has also decided to cut the list of sensitive products banned by member nations for import by 20 percent. A temporary committee has been formed to monitor the reduction of the list and it will submit its report in September 2010. Member nations have banned the import of 20-25 percent of exportable items terming them sensitive products. Trade between SAFTA members is less than 5 percent of their total trade. NEPSE bans 19 companies Nepal Stock Exchange Limited(NEPSE) has decided to de-list some 19 of its listed companies due to their failure to meet the requirement of paying annual renewal charge within the first three months of the current fiscal year."As these companies violated the concerned provision of the Stock Listing Regulation, 2053 (Second Amendment), we have decided to prohibit them from carrying out stock transaction by way of delisting," read a press release issued by NEPSE on Wednesday.The releases further stated that the de-listed companies will again be allowed to operate in the capital market if they adhere themselves to the related provision by paying annual renewal charge.The de-listed companies include Nepal Electricity Authority (Bond-2069), Nabil Bank Limited (Bond 2075), Raghupati Jute Mills, Jyoti Spinning Mill, Nepal Finance Limited, Yak and Yeti Hotels Ltd and Nepal Welfare Company Limited, among others. Finance Minister hopeful about budget getting approved from parliament Even as the continued disruption of the House proceedings by the Maoist lawmakers has shelved major legislative works including endorsement of the budget bill, Finance Minister Surendra Pandey on Friday claimed that the budget will be passed within the next seven days in the parliament.The Finance Minister was clearly hinting that the government ordinance is not required to see the budget through, as some leaders are saying.Talking to media-persons in Bhadrapur of Jhapa where he reached today to inspect the flood-affected areas of the district, Minister Pandey said that the budget has already entered the parliamentary process and that there is no other option left but to have it approved from the parliament.He said the Maoist demands are political and not at all related with budget and assured that this is why the controversy on the issue will be resolved in the next seven days.Minister Pandey also said that the constitution will be prepared by the stipulated time and that there is no alternative left for the political parties but to reach a consensus to end the prevailing political deadlock.
27
BPM- Weekly Report # 91 Zone 1-Asia
China to increase its assistance to Nepal by 50 pc The Chinese government expressed commitment to increase its grant assistance to Nepal by 50 percent. "The current annual grant assistance to Nepal will be increased to Rs 1.5 billion," Chinese ambassador to Nepal Qiu Guohong said while speaking at programme entitled "The Role of China in Nepal's Economic Development" organized in the capital.China had been contributing Rs. 1 billion annually as aid to Nepal's development."In order to consolidate trade and economic ties between the two countries, we will release soft loans to such projects that are contributing to uplift the living conditions of poor people," he said.According to him, China is always willing extend assistance to Nepal's hydropower, road and tourism sector."China will gradually grant more assistance to Nepal and in the future too we will give assistance and will encourage Chinese enterprises to make investment in Nepal," he added.Ambassador Guohong also focused on Nepal-China relations and urged both countries to work for mutual benefit and stronger bilateral relations.
Bhutan: Political: • Depening democracy: paradoxical Paro conference Social: Economic: Geo-strategic: • •
India to connect Bhutan projects with roads Nepal-Bhutan talks on the card
Depening democracy: paradoxical Paro conference Bhutan hosted the three day international conference on “Deepening and Sustaining democracy” (12-14 Oct), jointly organized by the Center for Bhutan studies and UNDP. It should be a matter of pride for the government of Bhutan to hold such magnanimous conference with a bit of experience on democracy. But for the SAARC region it is quite a surprise. UNDP’s regional director for Asia-pacific, Ajay Chhibber and Bhutan’s Prime Minister Jigmi Thinley should have shared even greater happiness to have realized their idea conceived far-off in New York a year back.Certainly enough, Bhutan is not a champion of democracy which is gifted by the palace to politicians-turned- bureaucrats to try. Another cautious step to transition, Bhutanese democracy is a top-down approach carefully planned and handled by the former royalists who pretended and advocated democracy to be an ill form of governance, at least in Bhutan. Although the conference aimed to initiate sufficient dialogue on the models and components of democracy;
28
BPM- Weekly Report # 91 Zone 1-Asia
failures and success of democracy in the region, it did so very little for the Bhutanese people themselves. India to connect Bhutan projects with roads Bhutan is constructing over a dozen hydropower plants with targets to generate some 11,000 MW of power by 2020, all to be absorbed in Indian markets. To all these projects, it is only Indian companies who are investing.Bhutan plans to generate 11,000 MW by 2020.India stopped some mega projects in Assam and Sikkim to drill Bhutan’s hyro potentials. For this to happen, a smoother transport is necessary connecting all project sites.The projects in Bhutan are to start their construction from early 2010. However, considering Bhutan’s road network, it would be very tough time for Indian constructors to deliver human resources and material resources to the project sites.To ease the situation, the two governments have signed an agreement to build more roads connecting all these project sites, to ensure works are not interrupted due to transport problem.Top on the list is to improve the Gelephu –Santabari (Assam) road, which links mega projects like Punatshangchu I and II, Chamkarchhu I and Mangdechu plants.Two governments during the second annual consultation of the Bhutan – India Development Talks held in Thimphu on October 28 – 30 finalized the road construction plans.The government of India agreed for timely release of the fund for the construction.Besides, both the governments agreed to hold the first Small Development Projects Committee meeting by the first week of November. The committee will consider and approve the projects, relating to rural development proposed by local governments.The agreement on this effect was signed by foreign secretary Daw Penjo and the Joint Secretary, (North) of the ministry of external affairs, India, Satish C Metha. Nepal-Bhutan talks on the card For the first time in two years the democratically elected government of Bhutan is opening its mouth on the refugee issue, for long labeled as the issue of the “people in the camps in Nepal”. There has been sequence of heavy pressures on the new government from various sides. Will there be revised hope of repatriation?The pressure started with the start of resettlement of ‘people from camps’ to different first world countries and visit to Bhutan by the Senator John McCain’s delegation, last year. The high level US delegation had given an assignment to the then recently elected government in Bhutan. The assignment included three major and six minor deeds Bhutan was expected to carry out within a given time frame. They were preparation for the repatriation of the people in camp who are willing to return to Bhutan, establishment of the US Embassy in Bhutan, transparency in the use of grants from the donors, improvement in the diplomatic relation with Nepal to solve the refugee crisis bilaterally, guarantee of freedom and security of the people in the opposition, change in the law to accommodate all section of the population, no more eviction on whatever reasons, etc.Last month Foreign Minister Ugyen Tshering traveled to Washington to hand over the assignment which carried the bulk but a little content. The long report had one thing half positive. That was willingness of Bhutan to open an educational and cultural consulate in Thimphu instead of a full fledged US embassy. The shy FM met with Senator John Mc Cain and requested him to forward the
29
BPM- Weekly Report # 91 Zone 1-Asia
assignment to White House. It was refused. The ultimatum must have been renewed or extended, or even warning must have been issued, Ugyen delegation returned with heat strong enough to make the leaders go rest less.They sought help of south block in Delhi, India, to crack new ideas to fool US and prolong the tact. Indian Home Minister P. Chidambaram had to rush to assist Bhutan’s ministers in the new chase move. On his way to Bhutan he used the transit time in Tribhuwan International Airport in Kathmandu by calling an emergency meeting with Nepal’s Home Minister Bhim Rawal and cautioning him to prepare for an immediate bilateral talk with Bhutan on the issue of the exiled Bhutanese. This unusual meeting of two home ministers during the usual transit of Druk Air in TIA was sufficient indicator of heat in the rulers.Not a coincidence Prime Minister Jigme Y Thinley rushed to Japan to meet Sadako Ogata, one of the former heads of UNHCR. During her leadership in the refugee organization, Jigme Thinly as a minister under the former Monarch Jigme Singye Wangchuck had developed a warm rapport with her. She was even invited to Bhutan to strengthen the intimacy. Now she is one of the most powerful figures who can be a right third person to suggest and influence on the issue of exiled Bhutanese and possible say to the pressurizing parties what Bhutan rulers want to say. It is noteworthy to recall that immediately after her visit to Bhutan; she visited the refugees in camps in Nepal and assured them that she would see all the refugees back in Bhutan during her tenure. What next? Now, out of many strategic moves designed, one would be to call for a positive dialogue with Nepal on the issue of exiled Bhutanese. The government in Nepal is right for the Bhutan to deal with, as Nepalese Prime Mnister Madhav Kumar Nepal is as good a friend of Bhutan’s rulers as Sher Bahadur Deuba who had agreed for Bhutan’s proposal to categorize exiled Bhutanese into four groups.If anything is possible, bendable, melt-able and strike-able, it is now. So let’s expect Bhutan and Nepal will sit for a new round of talk and give pretext to the world to say that the work is going on for repatriation of the citizens expelled two decades back. However, for the exiled Bhutanese, there is not much to get excited right now.
Myanmar: Political: • U.S. delegation in Myanmar for rare junta talks Social: • Contributors to winning best exhibitor award in China-ASEAN expo honored in Myanmar Economic: Geo-strategic: • S. Korean shipbuilder wins US$1.4 bil. Myanmar order U.S. delegation in Myanmar for rare junta talks
30
BPM- Weekly Report # 91 Zone 1-Asia
A delegation of senior U.S. officials arrived in Myanmar for Washington's highest-level talks with the reclusive military regime in 14 years.The Obama administration's move to engage the junta appears focussed on pushing for free and fair elections next year, although analysts say the rapprochement is as much about geopolitics and the growing regional influence of China.Assistant Secretary of State Kurt Campbell leads the delegation meeting the junta in its new capital Naypyidaw before travelling to Yangon for talks with detained Nobel laureate Aung San Suu Kyi and her National League for Democracy (NLD) party.The United States has said little ahead of the two-day visit, widely seen as exploratory dialogue to see how sincere the notoriously distrustful generals are about democratic reforms."The U.S. wants to suss out whether or not they have a genuine dialogue partner," said Sean Turnell, a Myanmar analyst at Australia's Macquarie University."The overtures towards warming ties with the U.S. have come from officials lower down and the U.S. is trying to get a feel for how committed the generals are."Campbell met Myanmar's minister of science, technology and labour in New York in September after Washington announced it would pursue deeper engagement to try to spur democratic reform.Burma, insisting dialogue would "supplement rather than replace the sanctions regime."A government source in Naypyidaw said Campbell, the highest-ranking U.S. official to visit Myanmar since Madeleine Albright in 1995, was expected to meet with government ministers and senior junta figures, including Prime Minister Thein Sein."But he's not likely to meet the senior general," said the source, referring to Than Shwe, the junta supremo who has led the country for the last 17 years.Critics of the regime say it could be using the U.S. visit for its own gain, to try to give legitimacy to its democratic "road map" and show key ally China, its economic lifeline, that it is not its only friend.Than Shwe's snub is being seen as an indicator of the generals' commitment towards reforms and a sign of whether the U.S. engagement can really be effective."Avoiding Campbell means the senior general is not ready to compromise. I think he will fall short of the expectations of the new U.S. administration," said a retired civil servant in Yangon.Thakhin Chan Tun, a retired diplomat, added: "We can't expect any tangible immediate results...Than Shwe is the one who makes all the decisions on all important policy issues."Some analysts say that with ties strained between China andMyanmar - over instability along their border - the generals are keen to reduce their reliance on Beijing and have sought to shore up ties with India, Russia and their Southeast Asian allies."Burma's ties with China may have been exaggerated and it might want to show that it can function independently," said Christopher Roberts at the University of Canberra.Campbell is due to meet Suu Kyi, who has spent 14 of the last 20 years in some form of detention, on Wednesday. The junta last month allowed her to meet Western diplomats to discuss sanctions on the country. Contributors to winning best exhibitor award in China-ASEAN expo honored in Myanmar The Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) has honored persons who contributed to the winning of some exhibition-related awards in the recent China-ASEAN Expo held in Nanning, capital of Southwest China' Guangxi Zhuang Autonomous Region, sources with the UMFCCI said on Monday. UMFCCI is
31
BPM- Weekly Report # 91 Zone 1-Asia
Myanmar's biggest private business organization. Myanmar won the best exhibitor award and best trade visitor organizer award in the 6th China-ASEAN Expo held from Oct. 20 to 24, attended by over 200 businessmen of 83 companies from the country. Persons honored on Sunday are those who contributed and drew designs for the national pavilion and the commodity pavilion, the sources said. According to the UMFCCI, Myanmar won some investment memorandums of understanding from Chinese companies during the recent China-ASEAN Expo held in Nanning. These prospective investments include those in the sectors of mining, hydropower, agriculture, value-added wood processing and gem production. Myanmar entrepreneurs, who attended the expo, were from such sectors as agriculture, fishery, industry, manufacturing, gems, traditional handicrafts, forestry and hotel and tourism. Myanmar booth on display at the just-ended expo highlighted the Muse border town as a town of facilitating trade and cooperation in levying tariff. Since joining the China-ASEAN trade fair in 2004, Myanmar booth featured the commercial hub of Mandalay in the second trade fair, tourism site of ancient city of Bagan in the third fair, port city of the former capital Yangon in 4th fair and cyber city of Yadanarpon in the 5th fair. The country won the best booth, best design and best creativity awards in the 4th China-ASEAN trade fair in 2007 and best booth award again in the 5th China-ASEAN trade fair. Meanwhile, Myanmar will open a business representative office in Nanning, next year in a bid to promote business links between the two countries especially with the region. The Myanmar representative office, to be jointly set up by the Ministry of Commerce and the UMFCCI, will display gems and gem products, forest and marine products and agricultural produces. China's Nanning and Myanmar's Yangon established friendship city relationship in July this year. According to Chinese official statistics, China-Myanmar bilateral trade amounted to 2.626 billion dollars in 2008, up 26.4 percent. Of the total, China's export to Myanmar took 1.978 billion dollars. S. Korean shipbuilder wins US$1.4 bil. Myanmar order South Korea's Hyundai Heavy Industries, the world's largest shipbuilder, it has won a US$1.4 billion deal to build an offshore gas platform in Myanmar. It said it secured the order from Daewoo International, a South Korean trading company which is leading a consortium to develop the gasfield off Rakhine state near the border with Bangladesh. Business and Politics in Muslim World South East Asia Tatheer Zahra Sherazi 23 October to 30 October 2009 (Outline)
32
BPM- Weekly Report # 91 Zone 1-Asia
Summary Indonesia • • • • • • • • • • • Malaysia • • • • • •
Political front: SBY and the future of the presidency Geo-strategic Front Economic Front Indonesian consumers more optimistic about the future economic policy Indonesia sees rebound in 2010 worker remittances Social front Questions over Indonesia asylum deal Environmental Front Indonesia may get $400 million from Japan to combat warming
9
11
15 15
Political Front 15 Najib: We’re still ready to talk with PAS Malaysia's Pakatan Rakyat faces problems Foreign Relations Economic Front 17 Malaysia hopes that Muslim countries can agree on which goods and products are halal, Malaysia Refrains From Rate Increase to Spur Recovery Najib hopes FTA signing will encourage investments Social Front 21 The government has been spending measly amounts on flood control
• • • • Philippine • Political Front • Foreign Relations • Economic Front • Philippines Says Talking with Thailand on Rice Deal • Social Front • Church in Philippines ready to negotiate for kidnapped priest's release • Thai police may make arrests over stock rumours • Environmental front • 4 Luzon areas placed under storm alert. Thailand • Political Front • Thai Political Crisis Drags In Asean Neighbours • Abhisit backs south's autonomy • Geo Strategic Front. • Thai ship hijacked by pirates • Thailand-Cambodia Dispute Overshadows Summit
33
22 23
24 25
26
BPM- Weekly Report # 91 Zone 1-Asia
• Foreign Relations • Economic Front • At Social Front Singapore • Political Front • Foreign Relations • Economic Front 28 • PM Lee warns of marginalised ASEAN if it does not stay relevant • S'pore & India to launch second round of free trade review • Singapore's manufacturing output falls 7.7% on-year in September • S'pore firms should create better balance in pay structures: study • S'pore firms invest in new economic zone in China's Fujian province • Customer satisfaction levels still declining in various sectors • Some firms in Asian markets still face lagging demand • Some firms in Asian markets still face lagging demand • Clinton meets MM Lee, says Singapore is a valued partner • KPE ranked among best managed tunnels in Europe in design, safety • Experts say Singapore's economic landscape must evolve • APEC summit likely to open many trade doors • Experts say carbon trading markets are picking up • Singapore improves overall score on gender equality • Survey ranks S'pore as world's No.2 best place to do business • Business sentiment among manufacturers improves for next 6 months: EDB • Environmental Front • At Social Front 38 • 1,500 more places allocated to Singapore for Haj season • Singapore to receive first batch of H1N1 vaccine in 2 weeks Vietnam • Political Front 39 • Foreign Relations • Vietnam, Cambodia discuss security, extradition pacts • Geo-strategic front • Economic Front 39 • Sri Lanka, Vietnam boost trade • Vietnam launches biofuel crop project boost • Pace of Vietnamese inflation slackens • Social Front 42 • Dengue outbreaks affecting the Philippines, Vietnam and India • US helps Vietnamese disaster victims • Environmental Front Cambodia • Political Front 44 • Thailand-Cambodia Dispute Overshadows Summit • Foreign Relations 45 34
BPM- Weekly Report # 91 Zone 1-Asia
• • • • • • • • • •
FM: Cambodia, India to strengthen defense, anti-terrorism co-op Cambodia will not extradite Thaksin on Thailand’s request Cambodia becomes permanent member of World Heritage Committee Economic Front Expanding Economic Horizons Korea offers Cambodia more development aid Social Front Environmental Front Cambodia vows to crack down on safety violations by factory owners. Typhoon warning for Cambodia and Vietnam
• • • • • • • • •
Political Front 51 Development of ASEAN civil service agreement expects to be signed Foreign Relations 51 Laos and China cooperates on human resource development Laos, Vietnam achieve in Nam Kanh border demarcation Economic Front 52 China-ASEAN Free Trade Area to Set Example for Global Co-operation At Social Front private company further donates relief fund to flood victims
47
49
Laos
Brunei • • • • • • • •
At political Front At Economic Front Brunei Meat Exports Via Halal Brand Probable Banks to publish true cost of financing Greater transparency sought from TAP At Social Front At environmental Front Economics Of Climate Change Forum
53
57
Summary At political Front • Indonesia Ben Anderson's The Idea of Power in Javanese Culture once was a very popular analytical tool to explain modern Indonesian politics. In this regard, Soeharto's New Order government often served as the most favorite text and context. This is perhaps due 35
BPM- Weekly Report # 91 Zone 1-Asia
to the fact that Soeharto was a politician who preserved and developed his power through, among other thing, spiritual endeavors. He was known to perform a certain spiritual purification ritual which affected his dealing with power. Power was therefore seen not only as a mundane or profane matter, but something which contained spiritual elements. • Malaysia The split in PAS is very serious but Umno is still open to possible Malay and Muslim unity talks with the party.Prime Minister Datuk Seri Najib Tun Razak however said it would be difficult to have formal talks if PAS was split. “So as long as PAS is not able to reach consensus, it will be difficult to hold talks with the party,” Najib told Malaysian journalists after attending the East Asia Summit here yesterday.PAS spiritual leader Datuk Nik Abdul Aziz Nik Mat had called for a special muktamar to rid the party of several problematic leaders including deputy president Nasharuddin Mat Isa and secretary-general Datuk Mustafa Ali. • Thailand The prolonged domestic political crisis in Thailand is now taking on a new shape, with neighbouring countries being sucked into the conflict between rival parties. Just days after the leaders of Cambodia and Thailand clashed over treatment of ousted Prime Minister Thaksin Shinawatra that overshadowed the 15th Asean Summit in Hua Hin, other developments connected to Thaksin had somewhat brought Thailand's neighbours into the spotlight. An uncharacteristically edgy summit of the Association of Southeast Asian Nations (Asean) threatened to boil over yesterday as Thai-Cambodian relations took another turn for the worse. A visibly exasperated Thai Prime Minister Abhisit Vejjjiva hit back at his Cambodian counterpart Hun Sen, calling him “seriously misinformed” over the latter’s remarks comparing fugitive former Thai PM Thaksin Shinawatra with Burmese pro-democracy leader Aung San Suu Kyi.Hun Sen had earlier offered Thaksin, who was deposed in a 2006 coup, a job as an economics advisor and said that if the exiled media mogul chose to come to Cambodia, he would not face extradition to Thailand to face corruption charges. • Cambodia An uncharacteristically edgy summit of the Association of Southeast Asian Nations (Asean) threatened to boil over yesterday as Thai-Cambodian relations took another turn for the worse. A visibly exasperated Thai Prime Minister Abhisit Vejjjiva hit back at his Cambodian counterpart Hun Sen, calling him “seriously misinformed” over the latter’s remarks comparing fugitive former Thai PM Thaksin Shinawatra with Burmese prodemocracy leader Aung San Suu Kyi.Hun Sen had earlier offered Thaksin, who was deposed in a 2006 coup, a job as an economics advisor and said that if the exiled media mogul chose to come to Cambodia, he would not face extradition to Thailand to face corruption charges. Cambodia will not extradite former Thai Prime Minister Thaksin Sinawatra based on a request made by the Thai government, the Cambodian government has said. “The Royal Government of Cambodia likes to make it clear about its position that Cambodia will not extradite Thaksin on any request made by the Thai government if he decides to stay in the kingdom of Cambodia,” said a government statement issued on
36
BPM- Weekly Report # 91 Zone 1-Asia
October 23.The Cambodian government’s statement comes a day after Thailand warned that it would request Cambodia to send Thaksin back to Thailand to serve his two-year jail term if he visits the country. At Foreign Relations Front At Geo Strategic Somali pirates on two skiffs have attacked and boarded a Thai-flagged fishing vessel north of the Seychelles and off the coast of Somalia, the European Union Naval Force says.The pirates were seen aboard the Thai Union 3 yesterday from a patrol aircraft when it was 370 kilometres north of the Seychelles, a statement on the force's website said. At Economic Front • Indonesia Indonesian consumer confidence has seen a steady increase over the last six months. Fuelled by optimism about the future, the Consumer Confidence Index by InsightAsia increased 8 points from 97 to 105, rising above the neutral point of 100. InsightAsia, one of Asia Pacific's leading market research groups - specializing in quantitative, qualitative research, brand development, business analytics and consultancy - surveys 9,200 people across five Asian countries on a yearly basis to produce. Indonesia's President picked a strong team of technocrats to handle economic policy in his new cabinet but could have placed more professionals in other posts to accelerate reform, investors said on Thursday. President Susilo Bambang Yudhoyono, sworn in for a second, five-year term this week, appointed a mix of pro-reform technocrats as well as several political allies who lack reform credentials to his cabinet, announced late on Wednesday night. Indonesia expects remittances from its overseas workers to rise to around $10 billion next year as the global economy improves, the head of a state agency in charge of migrant workers told Reuters on Friday. • Malaysia Malaysia hopes that Muslim countries can agree on which goods and products are halal, or acceptable to Muslims, a move that would boost the $2 trillion industry, although politics and interpretation of islamic law may complicate the task. The Organisation of the Islamic Conference (OIC) is working on a single standard to be applied in its 57 member countries. Agreement to regulate the halal industry, which ranges from financial institutions to cosmetics and meat, would help trade and speed up the certification for makers of halal products."Malaysia's halal certification is recognised worldwide so perhaps we can play an important role in creating a global standard," Malaysia's religious affairs minister Jamil Khir Baharom said in an interview on Thursday. "We need a halal certification that everyone can use easily." Malaysia’s central bank refrained from raising interest rates, opting to keep borrowing costs at a record low to support a nascent economic recovery as the government prepares to cut spending to trim its budget deficit. Bank Negara Malaysia maintained its overnight policy rate at 2 percent for a fifth straight meeting yesterday, it said in a statement in Kuala Lumpur. The decision was predicted by all 21 economists surveyed by Bloomberg News. The benchmark is at its lowest level since it was introduced in April 2004.
37
BPM- Weekly Report # 91 Zone 1-Asia
Malaysia hopes the signing of the Free Trade Agreement (FTA) with New Zealand will encourage more companies there to view Malaysia as a suitable investment hub and gateway to the Asean market, said Prime Minister Datuk Seri Najib Tun Razak. He said the signing yesterday was the highlight of New Zealand Prime Minister John Key’s short visit to Malaysia, marking a significant milestone in the trade links between the two countries. HUA HIN, Thailand: Prime Minister Lee Hsien Loong has warned that ASEAN risks becoming marginalised if it does not stay relevant. Speaking during the ASEAN leaders retreat on Saturday morning, he said it was vital for the grouping to strengthen cooperation, deepen integration and enable all its member countries to develop and prosper. • Singapore As the global economy recovers, Singapore's economic landscape must continue to evolve if it wants to stay ahead of the competition. Academics and private sector economists at the Singapore Policy Forum on Tuesday said that this should include building a stronger base of local enterprises, as well as focusing more on the services sector rather than manufacturing. The Economic Development Board (EDB) said business sentiment among manufacturers here has improved. Data from its latest Business Expectations Survey showed a weighted 22 per cent of firms predict an improvement in the business conditions in the next six months compared with 16 per cent last quarter. • Vietnam US$ 100 m target set for two-way trade volume by 2012: President Mahinda Rajapaksa and Vietnamese President Nguyen agreed to encourage bilateral trade and set the target of US$ 100 million for two-way trade volume by 2012. President Rajapaksa who was on a State visit to the Socialist Republic of Vietnam from October 22 to 24 also discussed a range of matters of mutual interest which included trade and investment promotion, agriculture, cultural cooperation, air services and defence and transnational crime prevention with President Nguyen. President Rajapaksa undertook the State visit at the invitation of Vietnamese President Nguyen Minh Triet. Lanka-Vietnam agreements •
Laos
The China-ASEAN Free Trade Area (CAFTA), to be established on Jan. 1, 2010, will set a good example for global cooperation, Lao Prime Minister Bouasone Bouphavanh said on Tuesday, 20 October.China and ASEAN have established strategic partnership, and it will attract much attention from the whole world, Bouasone said on the sideline of the 6th China-ASEAN Expo held from Oct. 20 to 24 in Nanning, capital of south Chinas Guangxi Zhuang Autonomous Region.ASEAN - the Association of Southeast Asian Nations, is a regional cooperation group founded in 1967. It groups Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam, with a total area of 4.5 million square kilometres. •
Brunei
38
BPM- Weekly Report # 91 Zone 1-Asia
Ghanim International Food Corp Sdn Bhd is keeping its doors open to the possibility of helping domestic poultry producers export their goods to Singapore using the premium Brunei Halal brand. In an interview with The Brunei Times yesterday, Noel Shield, Ghanim interim chief executive, said: "Poultry and fresh meat products are definitely a part of the products on the list of products to be included in the Brunei Halal brand for sure; however it will depend on what the market wants and needs." Ghanim International is the company appointed by His Majesty's Government to oversee the Brunei Halal brand. At Social front • Singapore The Saudi Haj Authority has allocated an additional 1,500 places to Singapore for the coming Haj season. This brings the total number of places available for Singapore this year to 2,180 – the same as last year. The Islamic Religious Council of Singapore (MUIS) had earlier requested for 4,000 places for Singaporean Muslims to go on a pilgrimage to the holy city of Mecca, which is part of a religious tradition. • Philippine Police may charge four or five people suspected of spreading rumours about the health of the country's 81-year-old king that triggered a slide in Thailand's stock market, a senior police officer said on Thursday. Thai stocks .SETI plunged a combined 7.2 percent on Oct. 14-15 as rumours circulated over the health of King Bhumibol Adulyadej, although they rebounded 3.5 percent the following day.
Detailed News Monitoring Report
39
BPM- Weekly Report # 91 Zone 1-Asia
Summary Indonesia • Political front: • SBY and the future of the presidency Ben Anderson's The Idea of Power in Javanese Culture once was a very popular analytical tool to explain modern Indonesian politics. In this regard, Soeharto's New Order government often served as the most favorite text and context. This is perhaps due to the fact that Soeharto was a politician who preserved and developed his power through, among other thing, spiritual endeavors. He was known to perform a certain spiritual purification ritual which affected his dealing with power. Power was therefore seen not only as a mundane or profane matter, but something which contained spiritual elements. Today, Anderson's analysis may no longer be relevant. Observers rarely use it as an analytical armory. But the chaotic transfers of power in 1998-2001 - reminiscent of the sorrowful events surrounding the transfer of power from Sukarno to Soeharto in 1966 encouraged many to take into account the intangible or immaterial aspects of politics that may steer the course of Indonesia's political development. Many may not realize it, but when Megawati Soekarnoputri lost her bid for another presidential term to Susilo Bambang Yudhoyono in the 2004 elections, some observers could not restrain themselves from raising the question why was it that in the end, the fate of all presidents was always surrounded by unpleasant circumstances? Of course, as all the available scholarly works have indicated, this is something that can be explained rationally. Interplay between the economy and politics, which may involve domestic as well as international actors, is sufficient to provide an explanation of some kind. Still, however, one can be easily intrigued by questions such as, why all? Were they all that bad when entrusted with the enormous power to manage the country? The answer is, of course, no. Sukarno was a person who spent all his adult life in the service of Indonesia's wellbeing. Not only that, he was the country's first president, but long before that, he was the most notable of the avant-garde to wage the archipelago's sense of nationalism to fight colonialism and bring Indonesia to independence. But in the end, only bitterness colored his life, even as a common citizen: He was implicated, directly or otherwise, with the 1965 failed coup, his power was stripped off him by the People's Consultative Assembly (MPR), he was put under house arrest - unable to communicate with the outside world. His successor, Soeharto, was more or less the same. That is, in the sense that, like Sukarno, Soeharto also dedicated his adult life for the betterment of Indonesia. For years he was in the military service, responsible, among other things, in making West Irian part of Indonesia' unitary state. For more than three decades he served as Indonesia's longest president, which enabled him to develop the country's economy. And yet his final years were severely unpleasant: being charged with corruption, tried, and, sadly, only his declining health saved him from undergoing further trials. B.J. Habibie did not suffer the humiliation experienced by Sukarno and Soeharto. But in the end, his devotion to Indonesia's technological and industrial development, his obsession to make the country a modern state in its truest sense, was met by the fact that
40
BPM- Weekly Report # 91 Zone 1-Asia
his leadership was politically unwanted. His very short term in office was a relative success, but in the MPR meeting in 1999, his accountability speech was narrowly rejected. Abdurrahman Wahid's presidency was full of controversies. At the beginning of his presidency, hopes ran high - regardless of his physical limitations. He was considered as the only person who could heal the country and unite the fragmented elites. Poor political judgment on his part made him the second president ever to be impeached by the MPR. After less than two full years in office his presidency was nullified and handed over by the MPR to Megawati. Megawati did not experience political bitterness like Sukarno, Soeharto, or Wahid. But she was defeated twice, once by her minister, Yudhoyono. The latter beat her fairly and squarely in the 2004 and 2009 presidential elections - something that is normal in politics. But for some reason, and only the two know exactly why, since then their relationship has gone sour. These sad realities, especially in the course of the transfer of power from one president to the other, has encouraged many to see the power interplay in the light of the intangible aspect of politics. One speculation was that perhaps the timing of the birth of an independent Indonesia was not correct. Therefore, the country is in great need of being spiritually healed (ruwat). Of course, one need not take such speculation seriously. Muslims in particular would have a different perception with regard to the date of birth of the Republic of Indonesia. The country's independence was proclaimed on Friday, Aug. 17, 1945. This coincided with the holy month of Ramadan - a period when Muslims are obliged to fast. How could such time be considered as inappropriate for the declaration of independence of the Republic? What needs to be emphasized here is not whether the country requires some kind of spiritual energizing so that it will move in tandem with the cosmic law of nature. What is important is that the cycle of unpleasant circumstances, or perhaps even political destinies, experienced by all of our former presidents, be broken. Yudhoyono has the chance to break that cycle. He has been able to avoid the cycle during his first term in office. Nobody knows what will happen to the second term of his presidency - something that resembled the experiences of both Sukarno and Soeharto where they could not predict what might happen, after the former being crowned as the president for life and the latter being the father of development. I think Yudhoyono will be able to break the cycle provided that he works solely for the interests of the people. In that respect, he should prioritize his agenda for the next five years. Three of his top agenda items seem to match with the public demands - economic development; democratic politics and law enforcement. What remains to be seen is whether his Cabinet members are able to understand those issues and put them in the context of policies that serve the interests of the people. Otherwise, history is waiting to repeat itself. The writer is the dean of the Faculty of Social and Political Sciences, State Islamic University (UIN) Jakarta • Geo-strategic Front • Economic Front • Indonesian consumers more optimistic about the future Indonesian consumer confidence has seen a steady increase over the last six months. Fuelled by optimism about the future, the Consumer Confidence Index by InsightAsia increased 8 points from 97 to 105, rising above the neutral point of 100. InsightAsia, one
41
BPM- Weekly Report # 91 Zone 1-Asia
of Asia Pacific's leading market research groups - specializing in quantitative, qualitative research, brand development, business analytics and consultancy - surveys 9,200 people across five Asian countries on a yearly basis to produce The Asian Consumer Confidence Index. Consumers in Indonesia are very optimistic about the future of both the economy and their financial well-being. This optimism has become stronger since the second quarter. Nevertheless the feeling about the current state of the economy and current financial well-being is somewhat negative; consumers still think that this is a bad time to purchase major household products, although the perception of financial well-being is less negative than earlier in the year. The GDP growth of 4 percent in the second quarter was the lowest in six years and the government expects a similar number for the third quarter. Consumers are slightly negative about the current state of the economy. The perception of current financial wellbeing has improved, though the overall feeling is still somewhat negative. The index of current financial well-being has increased over the last three quarters from 71 to 78 to 89, a steady upward trend. Despite the less positive view of the current economy, consumers have become increasingly optimistic about the future of the economy. Most are confident that the economy will recover throughout the next 12 months. The index that reflects the outlook of the economy has moved up from 108 in the first quarter to 128 in the second and 142 in the third quarter. A more optimistic outlook is also found in recent predictions by the Ministry of Finance and Bank Indonesia. Both increased their full year growth forecast from 3.5-4.0 percent to 4.0-4.5 percent. The World Bank shares this optimism, naming their recent report about the Indonesian economy *Clearing Skies'. The positive news has boosted consumer morale. 67 percent of the surveyed Indonesians think that unemployment will decrease in the next 12 months. The outlook of financial well-being has also increased. The index increased from 126 to 154. 67 percent of surveyed consumers believe their financial well-being will get better in the next 12 months. In the first half of the year the confidence of Indonesian workers in their ability to keep their job and increase their income has remained strong. Now that the signs of economic recovery have become stronger, this confidence has increased further. Despite the increased optimism about the future, consumers are still reluctant to do major purchases. The index that expresses this decreased from 52 to 45. 67 percent of the respondents indicated that this is a bad time to buy major household products. The Indonesian economy relies heavily on domestic consumption. This makes consumer confidence a key factor in economic development. Therefore the continued increase of the Consumer Confidence Index is a positive sign for the Indonesian economy, which is expected by the government to grow by 5.5 percent in 2010. But even though consumer confidence rose above the neutral level, satisfaction with current financial-well being and particularly the willingness to do major purchases is still low. If these aspects will improve in the coming months, economic growth could be accelerated. The third quarter measurement of consumer confidence in Indonesia took place in the first two weeks of September. The survey asks questions to 500 consumers in Jakarta, Surabaya and Medan regarding the economy and their financial well-being. The Consumer Confidence Index is based on consumers' opinions about the present state of the economy, the outlook of the economy, the current status of their financial wellbeing, the outlook of their financial well-being and willingness to buy major household items.
42
BPM- Weekly Report # 91 Zone 1-Asia
• economic policy Indonesia's President picked a strong team of technocrats to handle economic policy in his new cabinet but could have placed more professionals in other posts to accelerate reform, investors said on Thursday. President Susilo Bambang Yudhoyono, sworn in for a second, five-year term this week, appointed a mix of pro-reform technocrats as well as several political allies who lack reform credentials to his cabinet, announced late on Wednesday night. But many had hoped the president would take advantage of a strong mandate in this year's election to appoint more young professionals and technocrats who could inject fresh blood into policy-making. Although Yudhoyono needs support from other parties for a parliamentary majority, critics noted appointing senior politicians from coalition members in his first term had not always guaranteed legislative support, while some of the ministers had proved to be loose cannons.Yudhoyono "has avoided taking too many risks and in doing so, has disappointingly missed some obvious opportunities for institutional reform," said James Bryson, who runs investment firm HB Capital. "However the macro-economic direction will remain on course, and that is clearly a necessary condition for foreign investors." In Thursday morning trade the rupiah currency, which has steadily strengthened against the dollar this year, inched lower to 9,465 per dollar, while Indonesian stocks, which have climbed more than 80 percent since January, lost 1 percent. However, that was largely in line with regional trends rather than disappointment over the economic team, which was in line with expectations and includes Finance Minister Sri Mulyani Indrawati and Trade Minister Mari Pangestu, two economists who have raised the profile of Indonesia, a Group of 20 (G20) member. OBSTACLES TO GROWTH Both have worked closely in the past with Yudhoyono's new vice president, Boediono, whose focus is on fixing the main obstacles to faster growth including poor infrastructure and bloated bureaucracy. However, even the economic team is something of a mixed bag. For example, Yudhoyono named a little-known politician from his own party, Darwin Saleh, as energy and mining minister. Investors had hoped for a big shake-up of this key ministry given Indonesia's failure to attract billions of dollars in investment for the oil, gas and mining sectors in recent years. Hatta Rajasa, one of the president's trusted aides and a politician with little economic experience, was appointed Co-ordinating Minister for the Economy. M.S. Hidayat, who heads the Indonesian Chamber of Commerce and Industry which represents the country's powerful tycoons and business interests, will be Industry Minister. Hidayat is a member of the Golkar Party, led by controversial businessman and politician Aburizal Bakrie. On the plus side, widely respected technocrat Kuntoro Mangkusubroto will head a new, presidential delivery unit to drive reform of the civil service and the judiciary, and push through infrastructure projects. Investors frequently cite corruption, red tape, legal uncertainty and shoddy infrastructure as the main deterrents to investment in Indonesia.
43
BPM- Weekly Report # 91 Zone 1-Asia
But those are areas where cabinet members other than the economic team have considerable influence, and where analysts say more technocrats as ministers could have helped ensure changes. "(Kuntoro's) type of unit is highly promising in that it is precisely what the government needs to break through the deadlock that hampers investment, specifically bureaucratic structures, but it has no power in and of itself," said Kevin O'Rourke, a political risk analyst. "The idea is that everyone has to follow what the head of the unit says, but without the backing of the president, the various ministers and the department heads and agency heads can afford to ignore it," he said. Marcus Mietzner, an expert on Indonesian politics and lecturer at the Australian National University, saw hope for the new cabinet despite some shortcomings. "It's not a spectacular cabinet, there's lots of familiar faces from the political elite and from the political parties that he had to accommodate," he said."Yudhoyono has appointed his friends, people he trusts. He will have (Vice President) Boediono defining and hammering out economic policies and hand them over to (Co-Ordinating Minister) Hatta for implementation. That will work reasonably well because Hatta doesn't have economic ambitions himself so he will just implement them." • Indonesia sees rebound in 2010 worker remittances Indonesia expects remittances from its overseas workers to rise to around $10 billion next year as the global economy improves, the head of a state agency in charge of migrant workers told Reuters on Friday. The head of the agency, Jumhur Hidayat, had said in February 2009 remittances could drop by 5-10 percent from an estimated $8.2 billion in 2008 due to the global crisis, "We expect remittances from about six million Indonesian worker to reach around $10 billion next year," Hidayat said. He did not provide a figure for this year's remittances, although based on his estimate in February the figure could be $7.4-$7.8 billion. A recovery in the global economy should increase the number of migrant workers going to other countries, said Hidayat. The official said that the number of Indonesian workers going to South Korea, for example, had fallen to 3,000 this year from 12,000 in 2008, but that figure could rebound to around last year's figure in 2010. Some analysts and policy makers argue that the government should seek to increase the number of Indonesian workers earning abroad so that their currency remittances help reduce the volatility in the Indonesian rupiah. • Social front • Questions over Indonesia asylum deal The opposition will use the resumption of parliament today to press Labor about a deal with the Indonesian government on asylum seekers.The coalition claims the government has outsourced its border protection "policy failure" to the Indonesians. Deputy opposition leader Julie Bishop says taxpayers have the right to know how much the government's bid to stave off illegal people smuggling is costing. Prime Minister Kevin Rudd, who had discussions with other regional leaders at the East Asia Summit in Thailand at the weekend, is expected to be the focus of opposition attention during question time.
44
BPM- Weekly Report # 91 Zone 1-Asia
• Environmental Front • Indonesia may get $400 million from Japan to combat warming HUA HIN, Thailand (Kyodo) Prime Minister Yukio Hatoyama said Sunday his administration is considering offering Indonesia a yen loan worth $400 million to help it address climate change, a senior Japanese official said.If implemented, it would be the first such arrangement as part of the "Hatoyama Initiative," under which Japan will provide financial and technical assistance to developing countries in fighting climate change. "I would like the yen loan to be used for measures to tackle climate change, and hopefully it would be used in a measurable and verifiable manner," Hatoyama was quoted as telling Indonesian President Susilo Bambang Yudhoyono when they met on the sidelines of ASEAN-related summits.Hatoyama also said Japan will "spare no effort to offer technical support," such as assistance for improving energy efficiency.Yudhoyono thanked Hatoyama for the offer while noting that Indonesia is working to reduce carbon dioxide emissions and would also like to address deforestation.Hatoyama revealed his initiative at a U.N. climate change summit in September. Malaysia • Political Front • Najib: We’re still ready to talk with PAS The split in PAS is very serious but Umno is still open to possible Malay and Muslim unity talks with the party.Prime Minister Datuk Seri Najib Tun Razak however said it would be difficult to have formal talks if PAS was split. “So as long as PAS is not able to reach consensus, it will be difficult to hold talks with the party,” Najib told Malaysian journalists after attending the East Asia Summit here yesterday.PAS spiritual leader Datuk Nik Abdul Aziz Nik Mat had called for a special muktamar to rid the party of several problematic leaders including deputy president Nasharuddin Mat Isa and secretary-general Datuk Mustafa Ali. Asked if he was hurt at Nik Aziz’s refusal to have anything to do with Umno, Najib who is Umno president replied: “There are two groups in the party — one that is more political while the other is more sincere to work for the ummah.”He said there were some in PAS who acknowledged Umno’s contribution towards the Malays and Muslims and there were also others who were only interested in politics and ignored what Umno had done.“We are grateful that there are people who appreciate that Umno represents the Malays and Muslims. Umno has done a lot in terms of Islam and fighting for the rights of Malays and other races,” he added.In Putrajaya, Umno deputy president Tan Sri Muhyiddin Yassin said Nik Aziz’s call for the special muktamar was less about his objection to the proposed unity talks but more about ousting leaders who he felt were not aligned to him. “I think there is more to it than the issue of unity talks. There are differences of opinions among their leaders possibly due to other factors so there seems to be a clear split. “When Nik Abdul Aziz made the call for an EGM which is a clear step to remove sections that are not aligned to him, is that on the basis to reject the unity talks?” he said after attending the finals and prize giving ceremony of the RHB-The Star Mighty Minds 2009 competition here yesterday.Umno, he said, never dictated terms and was willing to work together with any party, not just PAS as its main concern was always the religion, the race and the country.
45
BPM- Weekly Report # 91 Zone 1-Asia
“Umno is a party for all. That is why we have amended the constitution to make it easier for anyone to become members,” he added.In Kota Kinabalu, Umno vice-president Datuk Mohd Shafie Apdal said whatever problems facing PAS at the moment was due to the attitude of PAS leaders themselves. Umno, he said, had nothing to do with the latest leadership rift in PAS.“Umno is not bothered whether the EGM takes place or not. Our focus is working for the people.“The leadership problems in PAS shows the party is not even near ready to lead the country. How can they unite the people when there is disunity among themselves.” • Malaysia's Pakatan Rakyat faces problems Prime Minister Najib Razak has been grappling with problems faced by parties in his ruling Barisan Nasional coalition. But he is not alone, as the opposition Pakatan Rakyat alliance is not faring any better. Its leader, Anwar Ibrahim, and his party PKR, are seen to be losing control. One of his lawmakers in the opposition-controlled state of Selangor left the alliance, citing loss of faith in his leadership. In addition, there was a revolt over the appointment of a new PKR leader in the East Malaysian state of Sabah. Some blame the ruling party, UMNO, for Pakatan's rising problems. "There's an attempt by UMNO to destabalise Pakatan Rakyat. This is one way to achieve their objective," said Azmin Ali, vice-president, PKR. Others dismiss the recent events as nothing more than growing pains. "There is always problem whenever we want to grow. We are now managing our success," said Tian Chua, information chief, PKR. The more cohesive opposition Islamist party, PAS, has not been spared from strife. Infighting has prompted the party's spiritual leader to call for an EGM to rid those in favour of forging a unity government with UMNO. At a central committee meeting, the PAS president said talks with UMNO will end, and the party will instead focus on strengthening the opposition alliance. "We have decided to put an end to all talks on unity government and remain with the opposition alliance," said Abdul Hadi Awang, president, PAS. PAS vowed to take disciplinary action against problematic leaders, but not everyone is deterred by that threat. "I have been appointed or elected as deputy president with an overwhelming majority, the members speak for themselves, the results of the muktamar speaks for themselves," said Nasharuddin Mat Isa, deputy president, PAS. Many feel that the infighting and the politicking are not going to go away anytime soon. But party veterans are calling on all sides to look beyond their differences, and reach for the common goal of capturing Putrajaya. "The election could be held as early as 2011. Otherwise, we will not be ready for it. Pakatan is still intact. There are differences even in DAP itself. I hope these differences will be ironed out before the election," said Karpal Singh, chairman, DAP. Malaysians will be watching with keen interest as both sides of the political divide race against time to win their trust and support before the next general election that must be held before 2013. • Foreign Relations • Economic Front • Malaysia hopes that Muslim countries can agree on which goods and products are halal, Malaysia hopes that Muslim countries can agree on which goods and products are halal, or acceptable to Muslims, a move that would boost the $2 trillion industry, although politics and interpretation of islamic law may complicate the task.
46
BPM- Weekly Report # 91 Zone 1-Asia
The Organisation of the Islamic Conference (OIC) is working on a single standard to be applied in its 57 member countries. Agreement to regulate the halal industry, which ranges from financial institutions to cosmetics and meat, would help trade and speed up the certification for makers of halal products."Malaysia's halal certification is recognised worldwide so perhaps we can play an important role in creating a global standard," Malaysia's religious affairs minister Jamil Khir Baharom said in an interview on Thursday. "We need a halal certification that everyone can use easily." The halal industry is based on a belief that Muslims should eat food and use goods such as cosmetics that are 'halalan toyibban', which means permissible and wholesome.But Muslim jurists do not always agree on what is halal. Islam prohibits the consumption of pork and prescribes how animals must be slaughtered, but there has been debate on the acceptability of non-alcoholic beer, collagen and vinegar.Rules are interpreted and enforced more strictly in some countries. Sudanese authorities have hauled up women for wearing trousers and a Malaysian woman has been sentenced to a beating for drinking beer, practices which are acceptable in some Muslim countries.Jamil said Muslims generally agree on what is halal although some issues should be left to countries to decide. "In general, we don't have many differences in terms of products and food." Some see politics as an obstacle as OIC members range from wealthy Saudi Arabia to poor countries like Somalia."Disagreement within the OIC is due to certain interests of certain countries," said Mohamad Akram Laldin, a religious scholar and legal expert. "Some people might have their own agenda and that might be the hindrance. They might want to push certain things from their view and not agree with others' views." • Malaysia Refrains From Rate Increase to Spur Recovery Malaysia’s central bank refrained from raising interest rates, opting to keep borrowing costs at a record low to support a nascent economic recovery as the government prepares to cut spending to trim its budget deficit. Bank Negara Malaysia maintained its overnight policy rate at 2 percent for a fifth straight meeting yesterday, it said in a statement in Kuala Lumpur. The decision was predicted by all 21 economists surveyed by Bloomberg News. The benchmark is at its lowest level since it was introduced in April 2004. “The international economic and financial conditions have improved further,” the central bank said. “Notwithstanding these improvements, the outlook for the global economy continues to be uncertain, with recovery likely to be slow and uneven in view of the ongoing adjustments.” Asian policy makers from India to South Korea have begun to signal they may be prepared to raise interest rates as inflation returns with economic recovery. Malaysia has less reason to follow Australia’s Oct. 6 move to increase borrowing costs anytime soon because consumer prices are declining and the nation is still in a recession, economists say. “Malaysia could be amongst the last to raise rates in Asia,” said Kit Wei Zheng, a Singapore-based economist at Citigroup Inc. who expects Bank Negara to increase borrowing costs in the fourth quarter of next year. “With policy needing to stay accommodative to offset the fiscal tightening implied by a smaller deficit, the risk is that rates are kept low for longer.” Policy ‘Appropriate’ The central bank said yesterday its current monetary policy stance is “appropriate” to support growth because price pressures should remain “contained” as the economy improves.
47
BPM- Weekly Report # 91 Zone 1-Asia
The ringgit fell for a third day to 3.4450 a dollar as at 9:01 a.m. today, its lowest level in more than three weeks, and Malaysia’s benchmark stock index slid a second day as concern a global economic recovery is faltering hurt demand for emerging- market assets. Confidence among U.S. consumers declined for a second month in October, a report showed earlier this week. “Bank Negara still views growth concerns as the greater risk to macroeconomic stability,” said Matt Hildebrandt, an economist at JPMorgan Chase & Co. in Singapore. Inflation is “muted” and “uncertainties about the growth outlook are still high,” he said. The government expects Malaysia’s $195 billion economy to expand between 2 percent and 3 percent in 2010 after shrinking 3 percent this year, helped by a recovery in demand for Malaysian Pacific Industries Bhd. semiconductors, IOI Corp. palm oil and other exports. Budget Deficit Prime Minister Najib Razak plans to narrow the budget shortfall to 5.6 percent of gross domestic product next year, reducing spending after stimulus measures to revive economic growth pushed the deficit to a 22-year high of 7.4 percent of GDP in 2009. Malaysia will probably lag behind South Korea and India in raising interest rates because the Southeast Asian nation’s economic recovery isn’t as strong as the other two countries’, said Vishnu Varathan, an economist at Forecast Singapore Pte. India’s central bank, which expects Asia’s third-largest economy to expand 6 percent in the year through March 31, on Oct. 27 ordered lenders to keep more cash in government bonds as it raised its inflation forecast. The move followed Australia’s decision on Oct. 6 to raise its benchmark rate to 3.25 percent from a 49-year low of 3 percent. South Korea, India South Korea’s economy expanded 2.9 percent in the third quarter from three months earlier, the fastest pace in seven years, and Bank of Korea Governor Lee Seong Tae said Oct. 23 that keeping rates at a record low may not be healthy. Malaysia’s economy, Southeast Asia’s third largest, shrank in the first two quarters of this year and the government doesn’t expect growth to resume until the final three months. Neighboring Singapore emerged from its recession in the second quarter and Indonesia and the Philippines have avoided economic contraction altogether. Governor Zeti Akhtar Aziz refrained from following other policy makers in raising interest rates last year when Malaysia’s inflation surged to as high as 8.5 percent amid soaring commodity costs, predicting that price gains would ease as world economic growth slowed. Consumer prices in Malaysia fell for a fourth straight month in September. The decline is expected to be “temporary,” the central bank said yesterday. ‘Subdued’ Inflation “Excluding further unanticipated price adjustments and external influences, inflation in 2010 is projected to be positive but remain subdued,” Bank Negara said. Interest-rate swaps signal the market is pricing in an eventual increase in borrowing costs in Malaysia in the second half of 2010, according to DBS Group Holdings Ltd., which cited the widening difference in yield, or spread, between the one- year swap rate and the Kuala Lumpur three-month interbank offered rate, or the Klibor.
48
BPM- Weekly Report # 91 Zone 1-Asia
The one-year swap rate of 2.44 percent offered 28 basis points more than Klibor yesterday from 10 basis points on April 29, when Bank Negara ended its interest-rate cuts, according to data compiled by Bloomberg. • Najib hopes FTA signing will encourage investments Malaysia hopes the signing of the Free Trade Agreement (FTA) with New Zealand will encourage more companies there to view Malaysia as a suitable investment hub and gateway to the Asean market, said Prime Minister Datuk Seri Najib Tun Razak. He said the signing yesterday was the highlight of New Zealand Prime Minister John Key’s short visit to Malaysia, marking a significant milestone in the trade links between the two countries. He said his discussions with Key touched on where the two countries stood in terms of economic relations, especially as trade between them had almost doubled between 2006 and 2008.Warm welcome: Najib greeting Key at his office in Putrajaya yesterday. — Bernama“Our bilateral trade in 2008 stood at RM6.15bil and although this year the numbers have fallen, we both believe it is a short-term phenomenon.“With the current global economic recovery, the total trade should be in an upswing in 2010 and beyond,” he said at a joint press conference with Key after their meeting at the Prime Minister’s office here yesterday.Najib said the two countries also had strong educational links and this was expected to be a key area to explore, along with tourism, which remained encouraging despite the economic downturn.Some 56,000 New Zealanders visited Malaysia last year.Meanwhile, Najib received a courtesy call yesterday from the first Malaysian to be awarded a scholarship by Harvard University.Tunku Dr Sharifah Elizah Cornelia Jamalullail, 29, was offered the scholarship under the auspices of the Mahadevan Travelling Fellowship at Harvard University, to undertake a study in psychiatry for one month.This will enable her to continue her studies at the Psychiatry Department of the Massachusetts Hospital, recognised as the world’s best for 13 consecutive years. • Social Front • The government has been spending measly amounts on flood control(Philippian) The government has been spending measly amounts on flood control despite the fact that it more than doubled the public works budget since 2002, which experts have described as a failure to invest in infrastructure that could have at least mitigated the worst flooding in Metro Manila in 40 years. Analysis by a watchdog group showed that while the Department of Public Works and Highways (DPWH) budget ballooned to P129.89 billion this year from just P48 billion in 2002, funds for flood control were barely augmented and in fact went down in proportion to the total outlay.In 2002 the nationwide flood control budget was P5.34 billion, 11% of the total. This year it stood at P6.21 billion, not even 5% of the entire DPWH budget, figures from the Center for National Budget Legislation showed. This was even reduced by a tenth to just P4.5 billion in 2004 from P5.05 billion in 2003; by nearly 5% to P5.9 billion in 2006 from P6.2 billion in 2005, and by a fifth to P6.6 billion in 2008 from P8.2 billion in 2007.From 2002-2009, an aggregate P48 billion was allocated for flood control and drainage projects as well as various structures and facilities — including expenses for salaries, operations, and actual capital investment.
49
BPM- Weekly Report # 91 Zone 1-Asia
"We’ve spent nearly P50 billion on flood control and the problem has even worsened. If in a matter of six hours flood waters have gone up, can you justify your performance? When you look around and see that drainage systems are clogged, we have to ask ’what happened to rehabilitation?’," said Joseph A. Rañola, president of the budget watchdog. The center’s analysis also showed a slowdown in foreign-funded flood control projects. After reaching a peak of P6.1 billion in 2007 from only P3.5 billion in 2002, these went back to P3.5 billion in 2008 and P3.4 billion this year. Even Metro Manila’s flood control budget — control of which was transferred by Malacañang to the Metropolitan Manila Development Authority (MMDA) from the DPWH in 2007 — has barely been augmented. The total went up by 4% to P329.6 million this year from P316.8 million, but money for "urgent disaster flood control works under the Pasig-San Juan-Marikina River System" was kept at just P50 million, while funds for flood control and drainage projects for Metro Manila were pared to P58 million from P61 million in 2008. The city of Manila has a yearly share of P12 million out of that budget, while that for other cities is much smaller: Marikina has P4 million while Pasig, Taguig, and Muntinlupa have just P2 million each."Everybody is talking about the problem but nobody is pointing to the solution to the problem, which is the budget," Mr. Rañola said. Sought for comment, MMDA Chairman Bayani F. Fernando claimed his agency’s appeals had been ignored. "Every year we ask for a higher budget for flood control projects. The problem is it is never given. We have to work with whatever amount is given to us." "For 2010, we are asking for around P2 billion for flood control projects in Metro Manila. We think that should be enough for the pumping stations needed in the area."The Arroyo administration did not really invest as much in public infrastructure despite repeated policy pronouncements, said UP economist Benjamin E. Diokno, budget chief under the Estrada administration. "A big chunk of that measly budget for flood control went to the [Japanese-funded Caloocan-Malabon-Navotas-Valenzuela flood control and drainage system improvement project]. But that project was initiated and funded by the Estrada administration under the Obuchi Plan," he added, referring to the Japanese economic package for east Asia following the 1997 Asian financial crisis.Asked if the amounts allocated over the years meant that the government did not prioritize flood control, House appropriations committee chairman and Quirino Rep. Junie E. Cua said, "Not exactly." The focus, however, was on implementing President Gloria Macapagal-Arroyo’s roads, bridges and ports project.Mr. Cua added that the budget for capital outlay in 2010 had also decreased due to a need to maintain the deficit at a manageable level. Under the DPWH’s proposed flood control budget for 2010, money for actual projects was trimmed to P2.68 billion from this year’s P2.71 billion, although the agency’s total flood control project will go up by a tenth to P6.9 billion. Philippine • Political Front • Foreign Relations • Economic Front • Philippines Says Talking with Thailand on Rice Deal
50
BPM- Weekly Report # 91 Zone 1-Asia
The Philippines, the world's biggest rice buyer, is currently in talks to purchase 200,000 tonnes rice from Thailand under a government-to-government (G-to-G) deal, a senior state official said on Monday. "The Philippines and Thailand are negotiating a certain volume for G-to-G," Agriculture Secretary Arthur Yap told reporters, adding the initial volume Manila was willing to grant Bangkok is 200,000 tonnes.On Sunday, Thai Commerce Minister Porntiva Nakasai said an agreement between Manila and Bangkok on rice import tariffs would be delayed by a month or two as negotiations continued. • Social Front • Church in Philippines ready to negotiate for kidnapped priest's release Church officials in the Philippines report that they expect to open negotiations immediately with the kidnappers who now hold Father Michael Sinnott, the Irish missionary who was seized on October 11. The kidnappers have made contact with Church officials, and Father Sinnott has been seen alive. But the health of the captive priest is a major concern, because Father Sinnott suffers from a heard condition and efforts to send his medication to the kidnappers have been unsuccessful. • Thai police may make arrests over stock rumours Police may charge four or five people suspected of spreading rumours about the health of the country's 81-year-old king that triggered a slide in Thailand's stock market, a senior police officer said on Thursday. Thai stocks .SETI plunged a combined 7.2 percent on Oct. 14-15 as rumours circulated over the health of King Bhumibol Adulyadej, although they rebounded 3.5 percent the following day. Police Major General Panya Mamen, a deputy chief at the Central Investigation Bureau, told Reuters the police were focusing on four or five people who may have spread the rumours, which caused the biggest two-day drop this year on the bourse. "We're now gathering all the evidence and next week the police will be applying for warrants from the Criminal Court," Panya said.The court could issue arrest warrants or may order the individuals to turn themselves in for questioning."These people will be charged with violating Article 14 of the 2007 Computer Offence Act covering the posting of false computerised information that causes harm to national security and the general public," he said.The health of the king 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.Thai Prime Minister Abhisit Vejjajiva said he understood four people were involved. "Police have information on this issue and if the evidence is clear, they would likely have to proceed with the case," he told reporters.The king was admitted to hospital on Sept. 19 with a lung infection and fever and has been seen only once in public since then, on Friday, Oct. 23, when he visited royal monuments in the hospital.The Department of Special Investigation (DSI), which comes under the Justice Ministry, is also conducting an inquiry into possible stock trading irregularities, which it expects to complete in late November. DSI Secretary-General Tarit Pengdit told Reuters it had received information involving trading irregularities from the stock regulator on Monday and its Bureau of Financial and Banking Crime was now investigating."We're trying to get to the bottom of it. We hope we can conclude this case within 30 days. We want it to be fast because investors and the public are interested," he said.Finance Minister Korn Chatikavanij said on Wednesday he
51
BPM- Weekly Report # 91 Zone 1-Asia
would meet with the Securities and Exchange Commission (SEC) and the Stock Exchange of Thailand (SET) on Nov. 2 to look at ways of managing volatility on the stock market. SET President Patareeya Benjapolchai said it was possible that the "circuit breaker" that triggers a half-hour halt in trading could kick in when the index falls 5 percent rather than 10 percent as at present.The SEC has said it was seeking trading information on two accounts from two foreign brokers, Credit Suisse in Hong Kong (CSGN.VX) and UBS in Singapore (UBSN.VX), in connection with this month's market plunge and was also looking at one domestic account. [ • Environmental front • 4 Luzon areas placed under storm alert Four areas were placed under storm signal No. 1 as typhoon Santi (international name Mirinae) intensified as it continued its movement towards Central Luzon on Thursday, the Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA) reported.PAGASA said the storm was located 1,080 kilometers east of Casiguran, Aurora, packing center winds of 150 kilometers per hour and gusts of up to 185 kph. The storm was moving west toward Central Luzon at a speed of 26 kph, the bureau said.Storm signal No. 1 has been hoisted over Isabela, Aurora, northern part of Quezon and Polilio Islands."Santi" entered the Philippine territory on Wednesday night as a typhoon. It was expected to strengthen further as it moves closer to Luzon. The National Disaster Coordinating Council (NDCC) has placed all units in the central and northern parts of Luzon ahead of the typhoon's expected landfall on Saturday night.. Defense Secretary Gilberto Teodoro Jr., concurrent NDCC chairman, has advised the public to go to cemeteries a day before or after the storm passes for the annual observance of All Saints’ and All Souls’ Days. Thailand • Political Front • Thai Political Crisis Drags In Asean Neighbours The prolonged domestic political crisis in Thailand is now taking on a new shape, with neighbouring countries being sucked into the conflict between rival parties. Just days after the leaders of Cambodia and Thailand clashed over treatment of ousted Prime Minister Thaksin Shinawatra that overshadowed the 15th Asean Summit in Hua Hin, other developments connected to Thaksin had somewhat brought Thailand's neighbours into the spotlight. Surapong Towijakchaikul,a Pheu Thai member of parliament linked to Thaksin, made a claim that one of the Asean leaders had stayed in a house belonging to Thaksin while attending the summit. The Thai government did not deny or confirm the allegation. But government spokesman Panithan Watanayakorn told the local media that the host had prepared accommodation for all leaders, but it was up to them to decide on their private arrangements.The same leader was also said to have skipped the opening ceremony of the summit and the launching of the region's first human rights body, despite arriving in the seaside resort a day earlier.Foreign Minister Kasit Piromya had played down the particular leader's absence from the opening ceremony, saying that he needed to rest after his long visits to far away countries prior to the Hua Hin summit.Newly-elected Pheu Thai chairman and
52
BPM- Weekly Report # 91 Zone 1-Asia
former prime minister Chavalit Yongchaiyudh also announced that he would visit Malaysia soon and planned to meet Malaysian leaders as well as travel to Myanmar. Last week, Chavalit's visit to Phonm Penh and his subsequent meeting with Cambodian Prime Minister Hun Sen caused consternation in Thailand when the latter alleged that Thaksin had been treated unfairly.Hun Sen also shocked the media here when he said that he would offer Thaksin the post of economic advisor to Cambodia. The infamous pro-government yellow shirt movement in Thailand has vowed to demonstrate in front of the Cambodian embassy here next week.Nattawut Saikua, a leader of the red-shirted anti-government United Front for Democracy against Dictatorship (UDD), said Chavalit's visit would help forge closer ties between Malaysia and Thailand."This visit is good for Thailand, especially in finding solutions to the southern Thai problem," he said. Thai Foreign Ministry's deputy spokesman, Thani Thongpakdi, said he believed that the Malaysian government would know that Chavalit's trip was a private one.Pheu Thai, formed late last year by Thaksin supporters after their previous People'sPower Party (PPP) was dissolved by the court for election fraud, has intensified its campaign to oust Prime Minister Abhisit Vejjajiva or at least force him to call for fresh elections. The red-shirted UDD plans to hold another rally in the capital probably next month after its planned concert in Khao Yai to raise funds for the movement. • Abhisit backs south's autonomy THAILAND'S prime minister backed on Tuesday a suggestion by his Malaysian counterpart to grant autonomy to the insurgency-hit Thai south, as five more people were killed in the Muslim-majority region. Abhisit Vejjajiva said he would discuss the plan for the restive southern provinces on the Malaysian border when Malaysia's Prime Minister Najib Razak visits Thailand in December.Mr Razak said in a newspaper interview published on Monday that Thailand should offer 'some form' of autonomy to the region, where more than 3,900 people have been killed since separatist violence erupted in January 2004.In response, Mr Abhisit said: 'That's the right approach. My government is working to make it materialise and in early December I and my Malaysian counterpart will visit the southern region.' Malaysia's Mr Razak told Thai English-language daily The Nation that 'you may not want to call it autonomy but there could at least be some form of involvement'. 'It is Thailand's decision to consider how far such autonomy in the deep south should go, and Malaysia, as a neighbour, would not intervene in the matter,' he was quoted as saying • Geo Strategic Front. • Thai ship hijacked by pirates Somali pirates on two skiffs have attacked and boarded a Thai-flagged fishing vessel north of the Seychelles and off the coast of Somalia, the European Union Naval Force says.The pirates were seen aboard the Thai Union 3 yesterday from a patrol aircraft when it was 370 kilometres north of the Seychelles, a statement on the force's website said. The fishing vessel appeared to be headed for the Somali coast.An EU naval force plane spotted the fishing boat and confirmed the pirates were on board. "Skiffs used by pirates have been sighted on board the fishing vessel," the force said in a statement. Thiraphong Chansiri, president of Thai Union Frozen Products Plc, the country's largest producer and exporter of canned and frozen seafood products, confirmed yesterday the Thai Union 3 seized by the Somali pirates was one of four vessels in its
53
BPM- Weekly Report # 91 Zone 1-Asia
fleet north of the Seychelles.The four vessels account for only 5% of the group's total shipping capacity. Mr Thiraphong said damage was likely to be marginal, and an insurance firm would handle negotiations with the pirates and take care of any losses incurred. However, he was most concerned about the safety of the 25 crew members, none of whom are Thais. The Thai Union 3 is the third ship from Thailand seized in the area. Last year a Thai fishing vessel flying the Kiribati flag and the MV Thor Star owned by Thoresen Thai Agencies Plc were hijacked.The hijacking of the Thai vessel takes the number of ships now being held by pirates off the Somali coastline to eight, the EU force said. Pirates have plagued busy shipping lanes off the coast of Somalia for several years. Foreign warships from 16 nations are in the area to try and prevent hijacks, but the sea gangs now hunt for ships far into the Indian Ocean. • Thailand-Cambodia Dispute Overshadows Summit An uncharacteristically edgy summit of the Association of Southeast Asian Nations (Asean) threatened to boil over yesterday as Thai-Cambodian relations took another turn for the worse. A visibly exasperated Thai Prime Minister Abhisit Vejjjiva hit back at his Cambodian counterpart Hun Sen, calling him “seriously misinformed” over the latter’s remarks comparing fugitive former Thai PM Thaksin Shinawatra with Burmese prodemocracy leader Aung San Suu Kyi.Hun Sen had earlier offered Thaksin, who was deposed in a 2006 coup, a job as an economics advisor and said that if the exiled media mogul chose to come to Cambodia, he would not face extradition to Thailand to face corruption charges. “Thaksin can stay in Cambodia as the guest of Cambodia and also be my guest as my adviser on our economy,” said Hun Sen. His remarks comparing the former Thai prime minister with Aung San Suu Kyi raised many eyebrows among summit delegates, as he attempted to capitalize on the international media attention on Asean this weekend to highlight his view that Thaksin’s plight is politically driven. “Hun Sen’s comments are being seen as an attempt to intervene in Thailand’s precarious domestic political situation,” said Thitinan Pongsudhirak, the director of the Institute of Security and International Studies (Thailand) at Chulalongkorn University in Bangkok. Last week, Hun Sen gave a pointedly high-profile reception to former Thai prime minister and Thaksin ally Gen Chavalit Yongchaiyuth. Chavalit said “Mr Hun Sen is my old friend and I am visiting him at his invitation.” Last month, Cambodian opposition leader Sam Rainsy was in Bangkok, where he addressed the Foreign Correspondents’ Club of Thailand on press freedom in Cambodia. Rainsy slammed the Hun Sen administration, saying that it gives token assent to freedom of speech but uses state resources to hit critics with defamation suits, backed by a pro-government judiciary. Thitinan said he thinks that Hun Sen has taken umbrage at Rainsy using his time in Thailand to attack the Cambodian government. Speaking to The Irrawaddy on the sidelines of the Asean summit, Cambodian opposition MP San Cchay said that Hun Sen’s reaction shows that he does not understand how a liberal democracy works. “Just because Sam Rainsy talks in critical terms while in Thailand does not mean it has anything to do with the Thai government. Hun Sen merely betrays his own antidemocratic leanings with such an assumption,” he said. Yesterday, the anti-government
54
BPM- Weekly Report # 91 Zone 1-Asia
and pro-Thaksin United Front for Democracy against Dictatorship (UDD) called on Asean to withdraw support for Abhisit as the bloc’s chairman. The UDD is seeking a royal pardon to enable Thaksin return to Thailand without having to face jail time on corruption charges. The UDD is also seeking a general election and deems the Abhisit government as illegitimate. Thaksin is regarded as the most popular yet divisive head of government in recent Thai history, implementing pro-poor policies and developing the northeastern Isaan region, but periodically clamping down on media, launching a draconian war on drugs and seeking a military solution to the southern Thailand Muslim rebellion. Interestingly, Hun Sen’s comparison of Thaksin’s situation to that of Suu Kyi comes as the Nobel Peace Prize laureate marks a total of 14 years in detention today. She was first arrested in July 1989, ahead of a landslide electoral victory by her party, the National League for Democracy, in May 1990. The comparison was made even as five Asean member states, including Cambodia, refused to allow NGO representatives other than those handpicked by the governments to attend a scheduled “civil society” meeting with regional heads of government. Nay Vanda of the Cambodian Human Rights and Development Association—selected by the Asean People’s Forum as his country’s representative at the meeting—said he was disappointed with the outcome. • Foreign Relations • Economic Front • At Social Front Singapore • Political Front • Foreign Relations • Economic Front • PM Lee warns of marginalized ASEAN if it does not stay relevant HUA HIN, Thailand: Prime Minister Lee Hsien Loong has warned that ASEAN risks becoming marginalised if it does not stay relevant. Speaking during the ASEAN leaders retreat on Saturday morning, he said it was vital for the grouping to strengthen cooperation, deepen integration and enable all its member countries to develop and prosper. This is why ASEAN is pursuing the Connectivity Masterplan to enhance trade, investment and tourism development. Mr Lee added that ASEAN should also act in a coordinated manner internationally. He noted that it is good that the ASEAN Chair and the Secretary General were invited for the G20 meeting in addition to Indonesia as this gave ASEAN a precious seat at the deliberations. Mr Lee added that ASEAN must take part actively and constructively at the G20 to ensure that the grouping's interests are safeguarded. • S'pore & India to launch second round of free trade review Singapore's free trade agreement with India, the Comprehensive Economic Cooperation Agreement, will undergo a second review. This was agreed upon by the prime ministers of the two countries, Singapore's Lee Hsien Loong and India's Manmohan Singh, during their bilateral meeting in Hua Hin on the sidelines of the East Asia summit. Mr Lee said the trade ministers of both countries had 55
BPM- Weekly Report # 91 Zone 1-Asia
discussed the matter earlier and Dr Manmohan Singh supports the review of the agreement as this would further enhance ties between the two nations. The Singapore premier said the republic's relations with India are very good as both sides have close cooperation bilaterally. Singapore has also played a small part in helping India to become a dialogue partner with the ten-member ASEAN grouping. • Singapore's manufacturing output falls 7.7% on-year in September Singapore's manufacturing output declined by 7.7 per cent on-year in September, snapping two straight months of growth. The pharmaceutical sector had worked like a magic pill, driving up Singapore's economy in the last two quarters. However, economists said the fourth quarter could be a different story given the volatility of the sector. Latest numbers showed that biomedical output fell 13.9 per cent in September, after almost doubling the previous month – making it one key reason for the decline in Singapore's manufacturing output. In the electronics sector, output declined by a marginal 1.1 per cent, and the total manufacturing output in the first nine months of this year contracted by 6.9 per cent from 2008. However, observers said the data is unlikely to set off a bearish outlook for Asian economies going forward. Mr Tai Hui, regional economist, Standard Chartered Bank said: "If you look at the data for Korea, China, Japan, etc, they are all on a gradually recovering path. So inventory restocking may have some influence over the coming months. "But don't forget the base effect from last year - where output and exports just collapsed in November and December. That is going to give Asian data a very huge boost in terms of year-on-year comparison. Economists added that the decline in Singapore's biomedical cluster masks the underlying improvement in other manufacturing sectors, like electronics and precision engineering segments. But it does not mean that there are no downside risks ahead. "Another key issue to watch out for is the currency market - where comments from China as well as market speculation on the role of the US dollar going forward, continues to create a lot of volatility. So, that in itself will have an impact on Asian financial markets." Barring any major shocks, experts believe the outlook for the Singapore manufacturing sector in 2010 is good - due to new plant capacity and more foreign direct investments. • S'pore firms should create better balance in pay structures: study Singapore firms should move towards having more long-term incentives in their pay practices. Ernst & Young, which has just released its first study on executive pay in Singapore, said on Tuesday that this will create better balance in pay structures. It added that it is important that rewards are geared towards encouraging prudent risktaking, especially as the economy emerges from the financial crisis. The study also noted that with signs of an economic recovery, many companies are expecting upward pay revisions in the next financial year. CEOs were among those whose salaries were hardest hit by the global financial crisis. According to Ernst & Young's study on senior management salary in Singapore, the number of chief executives with salaries above S$5 million last year fell to 15 per cent of the total, compared to 23 per cent in 2007. CEOs and business unit heads also took home lower bonuses. However, the trend was different for chief financial officers who appeared to be earning more, with no CFOs earning less than S$250,000 for FY2008, compared to 15 per cent in 2007.
56
BPM- Weekly Report # 91 Zone 1-Asia
Julia Smith, practice leader, Performance and Reward, Ernst & Young, said: "The CFO role has taken on a much bigger profile during the economic crisis and we've even seen cases within the organisation where the CFOs were sort of the unsung heroes of this whole economic crisis. "By anticipating the shortage of cash... they were able to secure credit lines. Some even put their companies in position to acquire and grow during these difficult times, and that was very much rewarded in terms of what we saw in the data." Pay practices in Singapore were also observed to be less dependent on bonuses awarded for a company's performance, compared to the United States. Ernst & Young estimated that pay practices here lean heavily towards short-term incentives, with only about 15 per cent in long-term incentives. Pay practices in the US are believed to comprise about 90 per cent in terms of long-term incentives. According to Ernst & Young, pay practices around the world should emulate those in Britain and Australia, and move towards a more balanced model. "(It should be) done in a way that is actually going to drive the right behaviour for the executive, making sure that... you're providing the amount of pay that is in line with the shareholder interest. "Whether or not that's done through equity plans or stock, or done through cash, remains to be seen. But the idea is that you can't take all your money this year and have your company fall apart two or three years down the road," said Smith. The study also noted that the pay levels for senior executives in Singapore are comparable to those in Hong Kong, although they are marginally behind those in the West. • S'pore firms invest in new economic zone in China's Fujian province China is developing a new economic zone to transform southern Fujian province. Together with the Pearl River Delta and the Yangtze River Delta, the hub will form an economic powerhouse in the region. Tourism plays an important role in Fujian's economy and the government is hoping to tap into this with the recent development of a new economic zone in the province. Some Singapore companies are capitalising on this and have started projects in Fujian. One of these firms is Straco Corporation, developer of tourism attractions. Earlier, the senior minister was briefed on current and future expansion plans of YCH, a logistics and supply company, which was one of the first few Singapore firms to enter the China market in 1992. Bilateral trade between Singapore and Fujian hit US$1.37 billion last year, making Singapore the 4th largest foreign investor in Fujian and top investor among Southeast Asian countries. Fujian is hoping that this figure will continue to rise and more investors will be attracted to start projects in the province, with the development of the new economic zone. • Customer satisfaction levels still declining in various sectors Customer satisfaction levels here have continued to drop despite efforts to boost service standards. The latest customer satisfaction survey conducted by the Singapore Management University's Institute of Service Excellence, showed on Tuesday that five out of six sectors covered in the survey saw a decline in satisfaction scores. Customers' satisfaction in the retail sector suffered the biggest drop this year. The tourism, hotel and accommodation services sector was the next worst-performing sector, but its decline was not as bad as last year's. Satisfaction scores in the education, info-communication and food & beverage sectors also dipped, while the transport and logistics sector was the only one which remained
57
BPM- Weekly Report # 91 Zone 1-Asia
unchanged. The institute said findings since 2007 have shown that customers, at least within the retail and F&B sectors, are now placing more importance on service over product quality. In response to the results, the Singapore Tourism Board (STB) said on Tuesday that the bulk of Singapore-based SMEs were not represented in the survey. STB, which was responding on behalf of the GEMS Up movement, said all businesses face the challenge of attracting new customers and keeping current ones. The challenge is greater now as consumers have higher expectations. It added that customers can also play their part by showing their appreciation for service providers who have delivered good service. Developing a culture of service excellence is what the GEMS Up movement aims to achieve over the next three years. Close to 10,500 households and some 3,500 tourists took part in the survey, which also showed that when it comes to tipping in the F&B industry, some 40 per cent of tourists practised it, while only about half as many locals did so. • Some firms in Asian markets still face lagging demand The global credit crunch appears to be easing, with many banks becoming more willing to lend again. But experts said on Tuesday that companies in Asian markets, such as Singapore, may face a new challenge in slow demand growth. Speaking at a CPA Australia congress, some said many firms are still grappling with over-capacity, even as the economy shows signs of improvement. Economies in Asia have not been as badly hit as their Western counterparts by toxic assets, which were among the root causes of the global financial crisis. Experts said this will help firms in countries like Singapore to focus on streamlining their businesses and restructuring for a rebound as the world economy recovers. Chaly Mah, CEO of Deloitte, said: "Clearly, things seemed to have bottomed out and business confidence has come, but the real demand hasn't gone back to pre-crisis levels. If you look at some of the manufacturing levels in this part of the world, they are getting some new orders, but the orders are not at the pre-crisis level yet. "And if you look at those manufacturing companies that are manufacturing for the Christmas sales, most of the orders typically come in during September in order to ship them for the Christmas season, but the level of orders have not come back to pre-crisis levels, so it is still a challenge and still pretty fragile." Going forward, experts said companies need to prepare for the withdrawal of government stimulus packages which will reveal the true state of global, regional and local economies. Richard Petty, president and chairman of CPA Australia, said: "I don't think it's going to be across the board that we are going to see a pick-up in demand, we are going to see it in particular industries in the near term. I think that we can see certain sectors of the economy that will likely do better in the short term than others." The financial sector, for example, is expected to do relatively well as companies are likely to need advice on financial, business and tax issues, as well as core banking services as they make their way out of the recession. • Some firms in Asian markets still face lagging demand The global credit crunch appears to be easing, with many banks becoming more willing to lend again. But experts said on Tuesday that companies in Asian markets, such as Singapore, may face a new challenge in slow demand growth. Speaking at a CPA Australia congress, some said many firms are still grappling with over-capacity, even as the economy shows signs of improvement.
58
BPM- Weekly Report # 91 Zone 1-Asia
Economies in Asia have not been as badly hit as their Western counterparts by toxic assets, which were among the root causes of the global financial crisis. Experts said this will help firms in countries like Singapore to focus on streamlining their businesses and restructuring for a rebound as the world economy recovers. Chaly Mah, CEO of Deloitte, said: "Clearly, things seemed to have bottomed out and business confidence has come, but the real demand hasn't gone back to pre-crisis levels. If you look at some of the manufacturing levels in this part of the world, they are getting some new orders, but the orders are not at the pre-crisis level yet. "And if you look at those manufacturing companies that are manufacturing for the Christmas sales, most of the orders typically come in during September in order to ship them for the Christmas season, but the level of orders have not come back to pre-crisis levels, so it is still a challenge and still pretty fragile." Going forward, experts said companies need to prepare for the withdrawal of government stimulus packages which will reveal the true state of global, regional and local economies. Richard Petty, president and chairman of CPA Australia, said: "I don't think it's going to be across the board that we are going to see a pick-up in demand, we are going to see it in particular industries in the near term. I think that we can see certain sectors of the economy that will likely do better in the short term than others." The financial sector, for example, is expected to do relatively well as companies are likely to need advice on financial, business and tax issues, as well as core banking services as they make their way out of the recession. • Clinton meets MM Lee, says Singapore is a valued partner Singapore's Minister Mentor Lee Kuan Yew on Monday met US Secretary of State Hillary Clinton in Washington. During the meeting at the state department, Mrs Clinton said Singapore is a long and valued partner of the US on many important issues. Mr Lee said it is time America renews and resumes engagement with Southeast Asia and East Asia, as Asia will alter the shape of the 21st century. The minister mentor is on a visit to New York and Washington DC. On Tuesday evening, Mr Lee will deliver a speech and receive the inaugural Lifetime Achievement Award from the US-ASEAN Business Council during the Council's 25th Anniversary Gala Dinner. • KPE ranked among best managed tunnels in Europe in design, safety Singapore's Kallang-Paya Lebar Expressway is ranked among the best managed tunnels in Europe both in design and safety, according to the prestigious European Tunnel Assessment Programme, EuroTap. EuroTAP examines the preventative, detection, mitigating and self-rescue features of a tunnel as well as its risk and safety potentials. An independent benchmarking exercise conducted in July this year, ranked the KPE in the band of "very good". That is the top rating under the European Union Directive on Safety Requirements for Road Tunnels in Europe. There is no mandatory requirement for tunnels in Singapore to benchmark against any international safety standards. But the Land Transport Authority said it has undertaken this assessment to ensure that the design and operations of KPE are able to meet the same rigorous international standards that are required of European tunnels. • Experts say Singapore's economic landscape must evolve As the global economy recovers, Singapore's economic landscape must continue to evolve if it wants to stay ahead of the competition. Academics and private sector
59
BPM- Weekly Report # 91 Zone 1-Asia
economists at the Singapore Policy Forum on Tuesday said that this should include building a stronger base of local enterprises, as well as focusing more on the services sector rather than manufacturing. Many economists believe that the global economic landscape will look very different in the aftermath of the economic crisis. External demand may not return to pre-crisis levels anytime soon, due to unresolved financial issues in Europe and the US, coupled with potential asset bubbles. And so, experts said Singapore needs to develop a more diversified corporate eco-system. "Currently we have a very strong presence of multi-national companies and governmentlinked companies, which I think is good and has been very positive for Singapore. But what we lack is sufficiently strong private local enterprise, and I think we need to do a lot more to try and help develop this," said Manu Bhaskaran, CEO, Centennial Asia Advisors. "The government through SPRING Singapore and other agencies are already doing quite a bit. But I think one of the problems we have for local enterprise is the capacity to grow quickly by accessing larger markets, gaining economies of scale and the like," he added. According to other experts, another way to gain access to a larger market is to leverage on technology and carve out a niche by offering unique services. Jimmy Koh, treasury economist, UOB said: "It is no longer about products, it is about services. It is no longer about just services, but it is the unique services that no one can duplicate. "We (Singapore) moved from electronics to bio sciences. We are moving from the traditional services to tourism, in terms of educational tourism, medical tourism and the two Integrated Resorts that will kick in next year. So it is trying to create something - the niche that in the short term will be difficult to be duplicated by any country." Singapore is already a "service economy" with two thirds of the nation's total output generated through services. "Many types of services are well known to be recession-proof in the sense that they are not so much affected during bad times - for example, education and even healthcare," said Choy Keen Meng, professor, Economic Growth Centre, NTU. Going forward, experts are hopeful that the Economic Strategies Committee, announced by Prime Minister Lee Hsien Loong earlier this year, will look at Singapore's growth model and review its viability in a post-crisis world. • APEC summit likely to open many trade doors Leaders from the Asia-Pacific Economic Cooperation (APEC) will be meeting in Singapore for a summit in two weeks, and the spotlight will be on US President Barack Obama, as he spearheads US efforts to promote trade with the region. According to former Deputy US Trade Representative Peter Allgeier, APEC is an important forum for the US. "First of all, there has been a lot of work within APEC to promote regional economic integration and good policies. It has been able to continue and build on that work. The other thing is that it is a very collaborative kind of organisation, it is not a confrontational one," said Mr Allgeier. Speaking at a seminar in Singapore, he singled out the services sector as one key area of cooperation, especially in sectors such as financial services, telecoms, energy, environment and information technology. The US is in the process of
60
BPM- Weekly Report # 91 Zone 1-Asia
working out a free trade pact with South Korea, and when passed by Congress, it is likely to signal the beginning of stronger US involvement in the Asia Pacific. "The next step really, is for ratification by both governments. Carrying that final step would be a sign that the United States is going to be increasingly engaged in Asia, and I think frankly, it is very much in our economic interests to approve that agreement," Mr Allgeier said. Looking ahead to the APEC summit, Mr Allgeier said that the meeting between President Obama and ten ASEAN leaders would likely open many trade doors. However, it would be premature to expect any talk about an FTA between the US and this region at the summit. • Experts say carbon trading markets are picking up Experts have said that as global financial markets begin to pick up, so are carbon trading markets. Carbon trading allows countries to buy carbon credits from green initiatives to balance out global carbon emissions. While such carbon trading projects may have been put on hold as a result of the financial crisis, experts said things are starting to look up. In the past 12 months, carbon projects have taken a hit as financials tightened investment into the market due to the global credit crunch. This caused prices of carbon to drop by some 75 per cent in the eight months leading up to February this year. Carbon credits are mainly traded via clean development mechanism (CDM) projects, a certification under the Kyoto Protocol aimed at global emission reduction. With signs that the global economy is picking up, life is returning to the carbon trading market. "So prices are coming up again, more projects are also being put on the market... China is (still) the biggest project offerer - about 60 per cent of the entire CDM market is taking place in China at the moment." CDM's typically hold themes of sustainability such as clean energy generation projects. For businesses coming out of the crisis, experts added that carbon trading is a great alternative source of finance for clean energy-related projects. Mr Dreyer said: "CDM is offering an alternative way and an additional way to get funding to realise projects. "You can use future savings in emissions to basically pay for the investment you are going to do, and of course that is a very good mechanism which is helping to bring projects on the ground a bit faster then traditional financing methods." Experts said that going forward, while there may be concerns over shifts in the carbon trading market post-2012 when the Koyoto Protocol comes to an end, now is still an opportune time to gain first mover experience as carbon emissions and climate change will continue to be top issues in the years to come. • Singapore improves overall score on gender equality It has improved on its overall score on equality between the sexes, but Singapore has slipped again in the world gender gap index by the World Economic Forum. The Lion City ranks 85th out of 134 countries, down a spot from last year. Its score, however, improved marginally to 0.666 (on a scale where 1 indicates full equality). Topping the list again were Iceland (0.827 high score), Finland, Norway and Sweden. Near the bottom were Iran, Saudi Arabia and Pakistan, while Yemen (0.46) took last place. In terms of women's economic participation and opportunities relative to men's, Singapore did all right, ranking 58th. The proportion of women to men in the ranks of professional and technical workers was close to equal, at 0.82. But estimated earned
61
BPM- Weekly Report # 91 Zone 1-Asia
income was far below parity (0.52) while the female-to-male ratio of those who worked as legislators, senior officials and managers was 0.44. In the "political empowerment" category, Singapore scored a mere 0.1 - but this failed to register that there is now a female Cabinet minister, Mrs Lim Hwee Hua. As for literacy rates and educational enrolment, female Singaporeans were nearly on par with their male counterparts. In terms of healthy life expectancy, they fared better. When contacted, parliamentarian Madam Halimah Yacob said the results would have to be analysed carefully. "From our perspective, there seems to be no widening of the gender gap ... But we will always be mindful of gaps. For example, the lack of women representation in top echelon of companies needs to be addressed." Meanwhile on Wednesday, the NTUC Women's Development Secretariat launched a new publication to inspire more local firms to look at work-life innovations based on some companies' experiences. Mdm Halimah, the secretariat's director, said this could help boost the female workforce participation rate from 56 per cent, which is well below the Scandinavian countries' 76 per cent. • Survey ranks S'pore as world's No.2 best place to do business Singapore overtook London as the investors' preferred place for doing business in a Bloomberg Global survey. Singapore was chosen by 17 per cent of respondents who said it was the second best place for financial services two years from now. New York, despite being battered by the financial crisis, remained the world's leading financial centre, with 29 per cent of the votes. London was in third place, garnering 16 per cent of the votes. Analysts said Singapore is growing in popularity as companies look for ways to tap the wealth accumulated in China and the rest of Asia. Respondents also favoured Singapore because it is well organised and efficient. Private wealth management, in particular, is growing in Singapore - which has no capital-gains tax. Shanghai was also popular, with 11 per cent of the votes, largely due to China's huge growth potential. Meanwhile, Tokyo - which was once considered a global hub - received the nod from only one per cent of respondents. The quarterly survey, which was conducted in early October, polled over 1,400 Bloomberg subscribers in six continents. • Business sentiment among manufacturers improves for next 6 months: EDB The Economic Development Board (EDB) said business sentiment among manufacturers here has improved. Data from its latest Business Expectations Survey showed a weighted 22 per cent of firms predict an improvement in the business conditions in the next six months compared with 16 per cent last quarter. A weighted 13 per cent of companies foresee worse business conditions over the next six months, lower than 18 per cent a quarter ago. Meanwhile, a weighted 65 per cent expect the situation to remain the same. Almost all clusters within the manufacturing sector expect an improved business environment as the global economy shows signs of recovery. The electronics cluster is the most optimistic with a net weighted balance of 22 per cent of firms expecting business conditions to improve. This is followed by the general manufacturing industries with a net weighted balance of 20 per cent. Business expectations for the precision engineering and chemical clusters have turned positive for the first time since the onset of the financial crisis last year.
62
BPM- Weekly Report # 91 Zone 1-Asia
However, the chemicals cluster is still concerned about excess supply of petrochemicals and petroleum refined products in the region. EDB said the transport engineering cluster is the least upbeat about business conditions for the period October 2009 to March 2010, compared to a quarter ago. Despite an improvement in business sentiments in the next six months, a net weighted three per cent of manufacturers expect output to decline in the fourth quarter of this year, compared to the third quarter. The improved outlook has had a knock-on effect on recruitment. A weighted 92 per cent of manufacturers project a similar or higher level of employment in the fourth quarter. This compared to a weighted 87 per cent recorded in the survey conducted a quarter ago. Meanwhile, business sentiment has also improved in the services sector. The Statistics Department said an overall weighted balance of 28 per cent of firms in the services sector forecast a favourable business outlook for the next six months. This is higher than the 21 per cent of firms who recorded a positive outlook in the previous Business Expectations Survey a quarter ago. In particular, hoteliers and firms in the catering industry were the most optimistic in the hope of better business in view of the year-end festive period and school holidays. Department stores as well as retailers of clothing and footwear and jewellery and watches also foresee higher sales in anticipation of the festive shopping season in the coming months. Banks & finance companies, brokerages, fund managers and insurance companies are also expecting higher levels of business activity during this period. However, firms in the real estate industry expect the demand for services to remain the same in the next six months. • Environmental Front • At Social Front • 1,500 more places allocated to Singapore for Haj season The Saudi Haj Authority has allocated an additional 1,500 places to Singapore for the coming Haj season. This brings the total number of places available for Singapore this year to 2,180 – the same as last year. The Islamic Religious Council of Singapore (MUIS) had earlier requested for 4,000 places for Singaporean Muslims to go on a pilgrimage to the holy city of Mecca, which is part of a religious tradition. The request is based on demands this year which number around 3,700, including 820 Muslims who were unable to go on their pilgrimages last year. This group of Muslims will be given priority for this year's Haj. Singaporean Muslims have to apply to the religious council to be short-listed for their pilgrimages. MUIS has advised successful applicants to select their Haj package early from approved travel agencies so as to settle the necessary arrangements and documentations without problems. • Singapore to receive first batch of H1N1 vaccine in 2 weeks Singapore will receive its first batch of the H1N1 flu vaccine in two weeks, with one million doses due to arrive by Christmas, Health Minister Khaw Boon Wan said on Sunday. This will be enough to satisfy the country's immediate needs, Mr Khaw told reporters at a community event. He also advised travellers to get vaccinated against the new flu strain, and urged those who want to have the jab before Christmas to notify their general practitioner as soon as possible. "I'll keep about 20 per cent for my frontline staff,
63
BPM- Weekly Report # 91 Zone 1-Asia
and the rest will be distributed to the general practitioners," said Mr Khaw. "That's why we need to get from them what are their expected orders." Vietnam • Political Front • Foreign Relations • Vietnam, Cambodia discuss security, extradition pacts Vietnam and Cambodia on Thursday discussed an agreement to strengthen public security ties as well as an extradition treaty to deal with crimes along their border areas. Police said border crimes have become more complex and serious than previous years. Since the beginning of last year, more than 1,890 smuggling cases were detected involving goods worth US$6.2 million. Other crimes, including drugs, arms and human trafficking, have also thrived along the Vietnam-Cambodia border, which stretches for nearly 1,200 kilometers. Vietnam has 10 provinces bordering Cambodia with a total population of 12.65 million. • Geo-strategic front • Economic Front • Sri Lanka, Vietnam boost trade US$ 100 m target set for two-way trade volume by 2012: President Mahinda Rajapaksa and Vietnamese President Nguyen agreed to encourage bilateral trade and set the target of US$ 100 million for two-way trade volume by 2012. President Rajapaksa who was on a State visit to the Socialist Republic of Vietnam from October 22 to 24 also discussed a range of matters of mutual interest which included trade and investment promotion, agriculture, cultural cooperation, air services and defence and transnational crime prevention with President Nguyen. President Rajapaksa undertook the State visit at the invitation of Vietnamese President Nguyen Minh Triet. Lanka-Vietnam agreements At the conclusion of the official talks between the two Presidents, a number of agreements were signed between the two countries. They included: * Agreement between the Democratic Socialist Republic of Sri Lanka and the Socialist Republic of Vietnam on Protection and Promotion of Investments * Cooperation Agreement between the Sri Lankan Defence, Public Security, Law and Order Ministry and Vietnam’s Public Security Ministry on Preventing and Combating Crimes; * Work Plan for 2010-2011 on Agriculture Development Cooperation between the Agricultural Development and Agrarian Services Ministry and VietnamAgriculture and Rural Development Ministry. * Agreement on the Work plan for 2010-2013 between the Fisheries and Aquatic Resources Ministry and Vietnam’s Agriculture and RuralDevelopment Ministry on the field of Fisheries Cooperation; * Memorandum of Understanding on Cultural Cooperation between the Cultural Affairs and National Heritage Ministry and Vietnam’s Culture, Sport and Tourism Ministry. The President was accompanied by Foreign Minister Rohitha Bogollagama, Export Development and International Trade Minister Prof. G. L. Peiris, Enterprise Development and Investment Promotion Minister Anura Priyadarshana Yapa, Western Province Governor Alavi Mowlana and senior officials and a group of business personnel. President Rajapaksa was accorded an official welcome at the Presidential Palace in Hanoi
64
BPM- Weekly Report # 91 Zone 1-Asia
on October 22. President Nguyen Minh Triet held official discussions and hosted a State Banquet in his honour. President Rajapaksa also met Secretary General Communist Party of Vietnam Nong Duc Manh and Vietnamese Prime Minister Nguyen Tan Dung. During his stay in Hanoi, President Rajapaksa placed a wreath at the Ho Chi Minh Mausoleum in honour of the leader of Vietnam. The bilateral discussions were held in an atmosphere of friendship, warmth and close understanding. The Heads of State noted the excellent state of the relations between Vietnam and Sri Lanka. The Vietnamese President congratulated President Rajapaksa on the defeat of the LTTE in Sri Lanka and reaffirmed Vietnam’s support for the sovereignty and territorial integrity of Sri Lanka. President Nguyen Minh Triet expressed support for President Rajapaksa’s efforts to build a peaceful and prosperous nation. In response President’s request for assistance in clearing mined areas in the Northern province, the Vietnamese side agreed to consider cooperation with Sri Lanka in demining process. President Rajapaksa thanked the President and the Government of Vietnam for their steadfast support to combat the LTTE in Sri Lanka, and in this context, for extending support to Sri Lanka at the UN Security Council and the Human Rights Council. The two leaders also exchanged views on a number of regional and multilateral issues of mutual concern and agreed to continue to work together for the mutual benefit of the two countries based on the principle of non interference. President Rajapaksa congratulated Vietnam for her impressive economic development recorded during the renovation process and expressed Sri Lanka’s felicitations for Vietnam’s achievements in foreign affairs, including its successful assumption of the role as a non permanent member of the UN Security Council and its forthcoming ascend to the Chairmanship of ASEAN in 2010. The President of Vietnam felicitated President Rajapaksa for the important contribution made by Sri Lanka as Chair of the South Asian Association for Regional Cooperation (SAARC), Asia Cooperation Dialogue (ACD) and G-15, and as a member of ASEAN Regional Forum (ARF). The discussions covered a wide range of matters of mutual interest which included trade and investment promotion, agriculture, cultural cooperation, air services and defence and transnational crime prevention. Both leaders agreed to encourage bilateral trade and set the target of 100 million US$ for two-way trade volume by 2012. The two leaders welcomed the successful conclusion of the Second Session of the Joint Commission between the two countries which was held in August 2009 in Sri Lanka. The Joint Commission was recognized as an effective mechanism to further enhance bilateral relations between the two countries in many spheres of cooperation. The Vietnamese President nnounced his country’s decision to reopen a resident Embassy in Colombo. President Rajapaksa welcomed this announcement and expressed confidence that a resident Vietnamese Mission in Colombo would help to further strengthen the friendship between the two countries in developing a comprehensive partnership with Vietnam. The President and the delegation also visited Ho Chi Minh City, the main commercial centre of Vietnam and were received by Chairman of the People’s Committee of Ho Chi Minh City Le Hoang Quan. President Rajapaksa inaugurated the Vietnam - Sri Lanka Business Forum which was jointly organized by the Vietnam Chamber of Commerce and Industry and the Foreign Investment Agency of the Ministry of Planning and Investments together with Foreign
65
BPM- Weekly Report # 91 Zone 1-Asia
Ministry and the Board of Investment of Sri Lanka in Ho Chi Minh City. The Business Forum was attended by business leaders of the two countries together with dignitaries of the two Governments. The Forum acknowledged the increase of the trade volume between the two countries. President Rajapaksa extended an invitation to Vietnamese President Nguyen Minh Triet, to undertake a State visit to Sri Lanka in a convenient time. President Nguyen Minh Triet accepted the invitation. The specific dates for the visit would be discussed through diplomatic channels. • Vietnam launches biofuel crop project boost The first stage of a project focusing on vegetable and biofuel crops has kicked off with the inauguration of a Vegetable Component Office at Vietnam's Fruit and Vegetable Research Institute (FAVRI). • Pace of Vietnamese inflation slackens Vietnam's consumer price index rose 0.37 per cent in October from the month before, down from September's 0.62 per cent, the General Statistics Office said Tuesday. Prices were up 7.2 per cent year-on-year, agency official Pham Tien Nam said. Credit growth stemming from Vietnam's billion-dollar, anti-recessionary stimulus package has led to fears of rising inflation, but the new figures showed little sign of it. The statistics office said the rise in the index was led by transportation, telecommunications, education and construction prices. Food prices fell 0.32 per cent month-on-month and 2.54 per cent year-on-year. Exports rose 1.5 per cent in October to 4.7 billion dollars while imports were up 7.25 per cent to 6.7 billion dollars. Vietnam's trade deficit in the first 10 months of the year hit 8.8 billion dollars, down from 16.4 billion dollars over the same period last year. • Social Front • Dengue outbreaks affecting the Philippines, Vietnam and India CDCThe mosquito borne virus, dengue fever, is being seen in increased numbers in many parts of Southeast Asia and India. In the Philippines, an Iloilo City newspaper reports 190 cases so far this year in the Capiz province alone. According to the Provincial Health Office in Capiz the majority of those infected are children, 97 boys and 93 girls. In addition there have been 3 deaths.The Prime Minister of Vietnam,Nguyen Tan Dung issued instructions on measures to be taken promptly against dengue fever in the wake of a surge in infections from the disease which is likely to evolve into a large-scale outbreak. Localities nationwide have reported 72,155 dengue fever cases so far this year -- a 7.1 percent rise from the same period last year. The disease took the lives of 58 people. And finally in the Indian capital of New Delhi, twenty four fresh cases of dengue fever were reported from the capital Tuesday in an outbreak that has killed two and infected 280 people.Although the sudden surge in positive cases is a cause for concern, the civic authorities state that the situation is under control and there is no need for panic. According to them, the figures are much lower than the previous year when the capital recorded 1,321 cases and two fatalities from the ailment. However, precautionary measures are being put into place to prevent escalation.Dengue fever is an infectious disease carried by mosquitoes and caused by any of four related dengue viruses. This disease used to be called “break-bone fever” because it sometimes causes severe joint and muscle pain that feels like bones are breaking.
66
BPM- Weekly Report # 91 Zone 1-Asia
Dengue fever of multiple types is found in most countries of the tropics and subtropics particularly during and after rainy season.There are four types of dengue virus: DEN-1, DEN-2, DEN-3 and DEN-4. People get the dengue virus from the bite of an infected Aedes mosquito. It is not contagious from person to person.There are three types of dengue fever in order of less severe to most: the typical uncomplicated dengue fever, dengue hemorrhagic fever (DHS) and dengue shock syndrome (DSS). • US helps Vietnamese disaster victims US Ambassador to Vietnam Michael Michalak on October 29 handed over US$500,000 to the Vietnam Red Cross (VRC) to support victims of storm Ketsana in the four provinces of Quang Nam, Quang Ngai, Gia Lai and Kon Tum. The money which was donated by the US government, the US Red Cross and the US Agency for Cooperation and Development is under a supporting project to help 35,000 people in the four provinces overcome the damage and handle their economic situation. The project, launched from October 29 this year to January 20, 2010, will provide assistance for households in the storm-hit areas to buy safe water, food, medicine, agricultural equipment, repair their houses and pay children's tuition fees. VRC Chairman Tran Ngoc Tang said the emergency aid project is part of the association's prioritised activities to support the storm victims and is a practical activity in response to the appeal of the International Federation of Red Cross and Red Crescent Societies. For many years, the US has helped the VRC to launch many support programmes and projects in 22 Vietnamese provinces and cities such as those on sanitation education and school nutrition in northern mountainous and central provinces, a flu prevention project and an HIV/AIDS treatment project. To respond the appeal of the International Federation of Red Cross and Red Crescent Societies, many international Red Crosses, foreign governments and international organisations in Vietnam have donated around VND82 billion to disaster victims. • Environmental Front Cambodia • Political Front • Thailand-Cambodia Dispute Overshadows Summit An uncharacteristically edgy summit of the Association of Southeast Asian Nations (Asean) threatened to boil over yesterday as Thai-Cambodian relations took another turn for the worse. A visibly exasperated Thai Prime Minister Abhisit Vejjjiva hit back at his Cambodian counterpart Hun Sen, calling him “seriously misinformed” over the latter’s remarks comparing fugitive former Thai PM Thaksin Shinawatra with Burmese prodemocracy leader Aung San Suu Kyi.Hun Sen had earlier offered Thaksin, who was deposed in a 2006 coup, a job as an economics advisor and said that if the exiled media mogul chose to come to Cambodia, he would not face extradition to Thailand to face corruption charges. “Thaksin can stay in Cambodia as the guest of Cambodia and also be my guest as my adviser on our economy,” said Hun Sen. His remarks comparing the former Thai prime minister with Aung San Suu Kyi raised many eyebrows among summit delegates, as he attempted to capitalize on the international media attention on Asean this weekend to highlight his view that Thaksin’s plight is politically driven.
67
BPM- Weekly Report # 91 Zone 1-Asia
“Hun Sen’s comments are being seen as an attempt to intervene in Thailand’s precarious domestic political situation,” said Thitinan Pongsudhirak, the director of the Institute of Security and International Studies (Thailand) at Chulalongkorn University in Bangkok. Last week, Hun Sen gave a pointedly high-profile reception to former Thai prime minister and Thaksin ally Gen Chavalit Yongchaiyuth. Chavalit said “Mr Hun Sen is my old friend and I am visiting him at his invitation.” Last month, Cambodian opposition leader Sam Rainsy was in Bangkok, where he addressed the Foreign Correspondents’ Club of Thailand on press freedom in Cambodia. Rainsy slammed the Hun Sen administration, saying that it gives token assent to freedom of speech but uses state resources to hit critics with defamation suits, backed by a pro-government judiciary. Thitinan said he thinks that Hun Sen has taken umbrage at Rainsy using his time in Thailand to attack the Cambodian government. Speaking to The Irrawaddy on the sidelines of the Asean summit, Cambodian opposition MP San Cchay said that Hun Sen’s reaction shows that he does not understand how a liberal democracy works. “Just because Sam Rainsy talks in critical terms while in Thailand does not mean it has anything to do with the Thai government. Hun Sen merely betrays his own antidemocratic leanings with such an assumption,” he said. Yesterday, the anti-government and pro-Thaksin United Front for Democracy against Dictatorship (UDD) called on Asean to withdraw support for Abhisit as the bloc’s chairman. The UDD is seeking a royal pardon to enable Thaksin return to Thailand without having to face jail time on corruption charges. The UDD is also seeking a general election and deems the Abhisit government as illegitimate. Thaksin is regarded as the most popular yet divisive head of government in recent Thai history, implementing pro-poor policies and developing the northeastern Isaan region, but periodically clamping down on media, launching a draconian war on drugs and seeking a military solution to the southern Thailand Muslim rebellion. Interestingly, Hun Sen’s comparison of Thaksin’s situation to that of Suu Kyi comes as the Nobel Peace Prize laureate marks a total of 14 years in detention today. She was first arrested in July 1989, ahead of a landslide electoral victory by her party, the National League for Democracy, in May 1990. The comparison was made even as five Asean member states, including Cambodia, refused to allow NGO representatives other than those handpicked by the governments to attend a scheduled “civil society” meeting with regional heads of government. Nay Vanda of the Cambodian Human Rights and Development Association—selected by the Asean People’s Forum as his country’s representative at the meeting—said he was disappointed with the outcome. • Foreign Relations • FM: Cambodia, India to strengthen defense, anti-terrorism co-op Cambodian Foreign Minister Hor Namhong said on Sunday that India and Cambodia will strengthen the cooperation on the fields of national defense and anti-terrorism between the two countries. Cambodian Prime Minister Hun Sen and his Indian counterpart, Manmohan Singh, held bilateral talks on a sideline of ASEAN summit in Thailand and their talks focused on working together to strengthen the defense and antiterrorism cooperation between the two countries, Hor told reporters at a press conference at Phnom Penh airport after Cambodian delegation arrived from ASEAN Summit in
68
BPM- Weekly Report # 91 Zone 1-Asia
Thailand. India agreed to provide 15 million U.S. dollars concessional loan for building electricity power networks from Kratie and Steung Treng provinces in Cambodia, Hor added. Moreover, Hor Namhong said that Indian Prime Minister will visit Cambodia in an appropriate time at the invitation of Hun Sen. Hun Sen, at the same, also requested the Indian side to help restore and maintain other Cambodian temples because Indian side used to assist Cambodia in the past, Hor said. • Cambodia will not extradite Thaksin on Thailand’s request Cambodia will not extradite former Thai Prime Minister Thaksin Sinawatra based on a request made by the Thai government, the Cambodian government has said. “The Royal Government of Cambodia likes to make it clear about its position that Cambodia will not extradite Thaksin on any request made by the Thai government if he decides to stay in the kingdom of Cambodia,” said a government statement issued on October 23.The Cambodian government’s statement comes a day after Thailand warned that it would request Cambodia to send Thaksin back to Thailand to serve his two-year jail term if he visits the country.Thailand had made the cautionary note after Cambodian Prime Minister Hun Sen said that Cambodia would warmly welcome Thaksin if he expresses his wish to stay in the country.Hun Sen had also said: "I consider Thaksin as my eternal friend. Cambodia will welcome him to stay here anytime. I will make a house available for him if he decides to visit Cambodia.” His statement had created a stir in Thailand, especially among pro-government factions, prompting the government to play the ‘extradition’ card. The extradition treaty between the two country states that any party can refuse the extradition request if it considers the demand to be politically motivated, the Cambodian government statement said. The requested party also has a ground for the mandatory refusal if the requested party has well-founded reasons to suppose that the request for extradition made by the requesting party aims to institute criminal proceedings against or execute punishment upon the person, or that the position of the person sought in judicial proceedings will be prejudiced for any of the reasons mentioned above.The statement added that based on the two reasons the Cambodian government has a right to make an interpretation on whether the case against former Prime Minister Thaksin Shinawatra is politically motivated or not. However, the Cambodian government has said Cambodia will maintain its friendly relation and continue to cooperate in all fields with Thailand. • Cambodia becomes permanent member of World Heritage Committee Cambodian Prime Minister on Tuesday expressed his warmly welcome as Cambodia becomes the permanent member of the World Heritage Committee (WHC) of UNESCO in 17th general assembly in France. "It is a new pride for our country that became fully permanent member of the world heritage committee," Hun Sen told over 2,000 students in graduation ceremony of a university in Phnom Penh. "Itwill promote the image and prestige of the Kingdom of Cambodia on the world arena," he added. On behalf of new permanent member of the WHC, Cambodia will implement its mission with high responsibility and will strengthen the cooperation with other countries, he said. "We will enhance capacity building and study multi experiences with the world heritage committee, UNESCO, and other international forums," he stressed. Moreover, Hun Sen said that Cambodia will do more to follow the common purposes in the WHC that has been working on conservation, culture and heritage development. "We have to
69
BPM- Weekly Report # 91 Zone 1-Asia
enhance more international cooperation to move forward of conservation and heritage development." The Kingdom of Cambodia was elected as a member of the WHC thanks to her richness in cultural properties and history including intangible cultural properties, several of which were inscribed on the World Heritage List, namely the Royal Ballet, the Shadow Theater, Angkor area, and the Temple of Preah Vihear, the premier said. Cambodia becomes one of 21 permanent members which represent 186 countries in the world in the 17th general assembly of world heritage committee that is held from Oct. 23 to 28, 2009 in Paris, France at UNESCO Headquarters. Cambodia became a member of UNESCO in 1951. • Economic Front • Expanding Economic Horizons President Lee Myung-bak in his Southeast Asia tour upgraded bilateral ties with Vietnam to a “strategic cooperative partnership” and got assurance from Hanoi to allow South Korean participation in infrastructure construction projects. In Phnom Penh, President Lee and Cambodian Prime Minister Hun Sen agreed to expand two-way cooperation to include areas such as mineral resources and broadcast content production and extend the business visa period for South Koreans. At the summit of the Association of Southeast Asian Nations, President Lee and ASEAN leaders reaffirmed close cooperation on the financial crisis, climate change, cultural exchanges and food security and concurred to upgrade bilateral relations to a strategic partnership. In his weeklong tour of Southeast Asia, the president has paved the way for further cooperation with nations in the region. Vietnamese Prime Minister Nguyen Tan Dung called President Lee “brother” and Hun Sen showed him the ancient Cambodian temple of Angkor Wat. These actions were affirmations of Seoul’s strengthened ties with the two countries. In March, President Lee announced a “new Asia initiative” to transform his country into a regional leader. The plan seeks to have Seoul speak for Asian countries on the international stage by looking at the continent from a new perspective and raising Asian awareness of Korea. His Southeast Asia tour has helped South Korea take the first step toward this goal by improving ties with nations in the region. With China and Japan maintaining their influence on the region, South Korea might find it tough to emerge as an Asian leader and face setbacks in achieving its goal. The country’s diplomacy, however, should pursue a plus-sum game instead of a zero-sum game. While strengthening trust-based cooperative relations with Beijing and Tokyo, Seoul needs to employ a win-win strategy with other governments in Asia. The International Herald Tribune said yesterday that South Korea has enough confidence and money to exert influence in Asia. South Korean diplomacy has focused on the United States, China and Russia due to its territorial division and the geopolitical situation of being surrounded by powerful countries. In the 21st century, countries face the same challenges such as the global economic crisis and climate change, so a shift in diplomacy to embrace diverse issues and interests is directly linked to South Korea’s survival. The diversification of diplomacy is also critical to resolve the North Korean nuclear program and human rights abuses, which have been dealt with by the United Nations, and for Seoul to raise its voice in the international community. With abundant natural resources, 52 percent of the world’s population, 21 percent of global GDP and 26 percent of world trade, Asia is comparable to North America and the
70
BPM- Weekly Report # 91 Zone 1-Asia
European Union in economic power. For further economic development, South Korea must make the most of Asia’s potential. To make President Lee’s new Asia initiative a success, Seoul must devise sophisticated strategies and pull wisdom from all sectors. This goal cannot be achieved by government efforts alone. Active participation from the private sector is also necessary. • Korea offers Cambodia more development aid Korea will provide a further $9.25 million to Cambodia in new development assistance in 2010 and 2011 to fund a road construction project in Siem Reap, best known for its proximity to Angkor Wat, according to the Blue House.Korea gave $5.9 million between 2005 and 2009 to build the road in an effort to help conserve the cultural heritage site. The Korea Ring Road will help disperse traffic in the area, contributing to protecting the 800-year-old temples, the Blue House said in a press release. Following a visit to Angkor Wat to discuss the road project and cultural preservation, Lee departed for Hua Hin, Thailand, yesterday to attend a series of regional summits. Today and tomorrow, Lee will attend the Korea-Asean summit and the Asean Plus Three summit where leaders of 10 Southeast Asian nations, China and Japan will join him. In the regional summits, Lee will seek the participating leaders¡¯ support to resolve North Korea¡¯s nuclear crisis, the Blue House said. Measures to fight climate change and promote green growth will also be addressed. After the Asean Plus Three summit, the leaders are expected to adopt a statement on food security and bio energy development cooperation. Tomorrow, the South Korean president will also attend the annual East Asia summit, in which the leaders of the Asean Plus Three and India, Australia and New Zealand will sit down to discuss regional and global issues.According to the Blue House, the Lee administration will concentrate its efforts on cementing trust between Korea and Asean. During a cabinet workshop last Sunday, Foreign Minister Yu Myung-hwan said Korea will use the Group of 20 summit that it will host in November next year as an opportunity to promote Lee¡¯s New Asia Initiative, the Blue House has said. Lee announced a new diplomatic initiative to engage Asia-Pacific nations in March, marking a shift in focus for Seoul¡¯s foreign policy, from the four global powers to relations with its regional neighbors. Lee said Seoul¡¯s foreign policy concentration on Washington, Tokyo, Beijing and Moscow last year was successful and that the time had come to reach out to countries in the region. Under his ¡°New Asia Initiative,¡± Lee¡¯s goal is to speak for Asian nations in the international community. According to the Blue House, Korea seeks to cooperate with Asia-Pacific neighbors while playing a leading role in resolving transnational tasks such as the financial crisis and climate change. Seoul will focus on diplomacy to encourage free trade and investment within the region. According to the Blue House, Lee¡¯s initiative gained momentum over the past seven months after he attended the Asean Plus Three summit in Thailand in April, visited Central Asia in May and hosted the Korea-Asean special summit in June. For stronger ties with Asean, Lee has also promised to increase the Korea-Asean cooperative fund from the annual $3 million to $5 million after 2010. Korea¡¯s official development assistance toward Asean nations will be increased from $155 million of last year to $395 million by 2015.
71
BPM- Weekly Report # 91 Zone 1-Asia
The Asean summits in Thailand later this week and the APEC summit in Singapore next month will be used as key opportunities to promote Lee¡¯s vision, the Blue House said • Social Front • Environmental Front • Cambodia vows to crack down on safety violations by factory owners. Officials have vowed to crack down on safety violations that endanger factory workers after toxic fumes in a garment factory in Cambodia’s capital sickened hundreds of workers.The Cambodian Ministry of Labor & Vocational Training allowed World Best Cambodia Co. Ltd. Garment Factory to reopen at its Phnom Penh factory Oct. 14 after more than 400 workers fainted days earlier from inhaling a pesticide.But Uk Vantha of the Department of Health, Ministry of Labor & Vocational Training, said that the continued operation of the factory depends upon a substantial overhaul of working conditions. “The factory used a chemical substance in the cloth warehouses, workplace, on the exterior of the factory, workers’ residences, and bathrooms,” Uk Vantha said.“Additionally, the working environment is inadequate. Water containers are not clean. Toilets at the back of the complex give off a bad smell and the wind blows it into the factory,” he said.Uk Vantha said factory management must clean the building’s interior, upgrade toilet facilities, ensure no deductions from workers’ salaries, and allow workers who have not fully recovered from the poisoning to rest. He said the factory will be subject to inspections from the Ministry of Health, Ministry of Labor, Ministry of Environment, and local authorities going forward, adding that any factory that disregards Ministry of Labor regulations on the use of toxic substances will be fined. Fainting from fumes On Oct. 12, more than 400 workers, mostly women, lost consciousness after inhaling the pesticide at the World Best garment factory in Phnom Penh’s suburban subdistrict of Chaom Chau, in Dangkao district. The two-year-old factory, which says it employs around 1,500 garment workers, was forced to suspend operations for one day after the incident to rid the premises of remaining chemical vapors. Factory worker Nou Mom, 36, who received emergency treatment at a hospital in Phnom Penh, said she had recovered. Unknown substance Workers from the World Best Cambodia Co. Ltd. Garment Factory are treated at a Phnom Penh hospital after inhaling toxic fumes, Oct. 12, 2009. Credit: RFA Another worker who identified herself as Nary, 21, said that even while she was recovering, she still experienced side effects. • Typhoon warning for Cambodia and Vietnam The UK Foreign Office is warning travellers in South East Asia of weather forecasts stating that Typhoon Mirinae is likely to hit Vietnam and central and northern Cambodia around 1 – 2 November 2009. The typhoon is currently approaching westwards across the South China Sea. Current projections show that the area it could hit includes Siem Reap, one of Cambodia's main tourist destinations, and the main base for visiting the nearby temple complex of Angkor Wat.
72
BPM- Weekly Report # 91 Zone 1-Asia
The FCO advises travellers visiting the area to continue to monitor the FCO Cambodia travel advice and follow their advice on the tropical cyclones page and at www.tropicalstormrisk.com. Laos • Political Front • Development of ASEAN civil service agreement expects to be signed An agreement on the development of ASEAN civil service is expected to be signed today at the end of the 15th ASEAN Conference on Civil Service Matters in Laos.Second day of the 15th ASEAN Conference on Civil Service under the theme of �Public Sector Capacity Development: towards Improved Service Delivery has been seen the progress.The second day meeting had two main events. The first meeting involves the Heads of ASEAN delegations of 10 countries including Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore Thailand and Vietnam, which was chaired by Mr. Khammoune Viphongxay, Deputy Head of the Public Administration and Civil Service Authority, and ASEAN Head of Lao Civil Service.The objective of this meeting was to exchange comments and view regarding cooperation on civil service management in the future and to discuss and approve the ACCSM work plan 20082015.Furthermore, the meeting discussed a means of developing cooperation between ASEAN and +3, namely China, Japan and Republic of Korea, in civil service management and human resource development. This is the first occasion the +3 countries are involved in the ACCSM and the inaugural meeting will take place on 30 October 2009. The proposed cooperation will focus on three areas: E-governance, Human Resources Management (HRM) and Human Resources Development (HRD) and Productivity improvement in the civil service.The second meeting was the technical meeting which was held at the same time. The meeting was chaired by Mr. Nisith Keopanya, Director General of the Civil Service Management Department.The objectives of this meeting are to exchange and report on the progress of civil service activities from each of the ASEAN member countries. The Lao delegation delivery a report on Strengthening Capacity of local Executive Management. The Lao delegation also shared the achievements of training programmes on public administration and civil service management which were delivered to managers and technical staff at local level in 20082009.The result of these two meetings will lead to an agreement and the signing of a letter of transmittal at the closing ceremony of the 15th ACCSM conference, according to yesterday press release. •
Foreign Relations •
Laos and China cooperates on human resource development
The Personnel Organization Department of Prime Ministers Office and the Kunming University of Science and Technology, Yunnan province, China signed an agreement on a joint effort to fine tune human resource development in Laos.An aspect of this agreement was that this Chinese university would be teaching the Chinese language to the officers of the Personnel Organization Departments of Prime Ministers Office of Laos, from March 2010. 73
BPM- Weekly Report # 91 Zone 1-Asia
The Chinese government also said it would provide 15 scholarships to selected officers of the Personnel Organization Department for masterate and doctorate courses.The two sides also agreed to exchange experiences on matters relating social-economic and personnel development.The agreement was signed in Vientiane by representatives of the two bodies, Mr Khamphone Keosavanh, Director General of the Personnel Organization Department of Prime Ministers Office and Professor Dr Gang Deng, Director of Division of International Cooperation of Kunming University of Science and Technology.The other people at this signing event on 22 October were Dr Boviengkham Vongdara, Head of Office of the Prime Minister�s Office and concerned officials of the two sides. •
Laos, Vietnam achieve in Nam Kanh border demarcation
The leading officials of Lao and Vietnamese Border Demarcation Committee last week gathered at the Nam Kanh 405 border mark between Xiengkhouang province of Laos and Nghe An province of Vietnam to express satisfaction with the success of boundary demarcation.Taking part in the event were Mr Phoukhao Phommsavongsa, Head Office of Lao National Border Committee of the Ministry of Foreign Affairs, Mr Viengthamoum Phommachanh, Xiengkhouang Acting Governor, leading officials of Vietnam and Laos Border Committee and Nghe An province core officials. They have celebrated the achievement of 405/1 and 405/2 boundaries at the Nam Kanh border checkpoint.Leading officials of Xiengkhouang province of Laos and Nghe An province of Vietnam have exchanged delivering remarks at the rally, which hosted by Laos. Mr Phoukhao said that the two national leaders have wished to build peace and friendship border lines between Laos and Vietnam under the convention of border demarcation signed by two countries in 1977 and additional convention on border demarcation in 1986.Two sides were able to succeed in border demarcation with a total length of 2,067 km.Presently, Laos and Vietnam have established 605 border marks, which is located at the Densavanh crossing border checkpoint. The demarcation at the Densavanh crossing border checkpoint was in coincides with the celebration of 46th anniversary of diplomatic relation between Laos and Vietnam • •
Economic Front China-ASEAN Free Trade Area to Set Example for Global Co-operation
The China-ASEAN Free Trade Area (CAFTA), to be established on Jan. 1, 2010, will set a good example for global cooperation, Lao Prime Minister Bouasone Bouphavanh said on Tuesday, 20 October. China and ASEAN have established strategic partnership, and it will attract much attention from the whole world, Bouasone said on the sideline of the 6th China-ASEAN Expo held from Oct. 20 to 24 in Nanning, capital of south Chinas Guangxi Zhuang 74
BPM- Weekly Report # 91 Zone 1-Asia
Autonomous Region.ASEAN - the Association of Southeast Asian Nations, is a regional cooperation group founded in 1967. It groups Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam, with a total area of 4.5 million square kilometres.CAFTA is the first free trade area agreement signed by China, which will provide zero tariff on 90 percent of products traded between China and the ASEAN and other favourable policies on trade and investment. The establishment of CAFTA is both an opportunity and a challenge for China and ASEAN countries. In the future, a lot more issues concerning all aspects will need discussion, Bouasone said. CAFTA is expected to create a combined GDP of nearly 6 trillion US dollars to become the third largest FTA in the world, only next to the North American FTA and European FTA.Laos is on its way to improve infrastructure and kick off construction projects, such as building railways and highways between Laos and China and other ASEAN countries, to jump into the China-ASEAN trade and investments cooperation as soon as possible, Bouasone said. He also mentioned China, as the worlds largest developing country, was a key player in the regional development and that China was of much help to ASEAN countries. From the Asian financial storm in 1997 to the global financial crisis starting in 2008, China has offered 10 billion US dollars worth of financial aid to ASEAN countries, Bouasone said. PM Bouasone Bouphavanh and his delegation returned home on 21 October. • •
At Social Front
private company further donates relief fund to flood victims
The Sengvixay Construction Road-Bridge and Irrigation Company yesterday provided 50 million kip to relieve the flood victims in three southern provinces of Sekong, Attapeu and Saravane.The hand-over was held at the Ministry of National Defence, on 27 October.The money was given by the President of Sengvixay Construction Road-Bridge and Irrigation Company, Mr. Thongla Sengvixay to the Supreme Commander of the People�s Security Defence Force, Lieutenant General Douangchay Phichit, who is also Deputy Prime Minister and Minister of National Defence.On this occasion, Mr. Douangchay expressed thanks to the Sengvixay Construction Road-Bridge and Irrigation Company for assisting the flood victims Brunei • •
At political Front At Economic Front
• Brunei Meat Exports Via Halal Brand Probable Ghanim International Food Corp Sdn Bhd is keeping its doors open to the possibility of helping domestic poultry producers export their goods to Singapore using the premium Brunei Halal brand. In an interview with The Brunei Times yesterday, Noel Shield, Ghanim interim chief executive, said: "Poultry and fresh meat products are definitely a part of the products on 75
BPM- Weekly Report # 91 Zone 1-Asia
the list of products to be included in the Brunei Halal brand for sure; however it will depend on what the market wants and needs." Ghanim International is the company appointed by His Majesty's Government to oversee the Brunei Halal brand. Recently, the Agriculture Department said it was looking forward to facilitating poultry exports by private growers via the premium brand. Mulaut Abattoir is also confident it could get licence to use the brand to case its entry in export markets for its processed meat products. Should their studies show that there is an opportunity in foreign markets, like the Middle East, Shield said they will definitely consider the intention of interested companies who wish to be represented by the brand. "The whole thing is market driven, even if we see an opportunity to export to Singapore or Hong Kong, then we will do it, however, there is no specific date on when this will happen," he told The Brunei Times. Shield emphasised that the reason Ghanim is particular about overseas market potential is because it is not eyeing the domestic market for distribution of products bearing the premium brand. Aiming for the Brunei market will only add competition to the local small and medium enterprises (SMEs), he said "We do not want to compete with the local SMEs because that is not part of our plan," said Shield.In an earlier interview, Dr Dabeding Hj Dullah, assistant director of the Agriculture Department, said his office is positive domestic poultry producers will be able to ship to Singapore next year. hopefully under theBrunei Halal brand, as Brunei is currently 100 per cent self-sufficient in poultry. Dr Dabeding said exporters will be making use of the Brunei Halal brand and that this will hopefully lead to exports to the Middle East and other markets with high demand for poultry."The Brunei Halal brand should come not only as a halal product, but a product of quality," he said. Islamic markets for beef products, said the company's acting deputy general manager. "Mulaut Abattoir has been trying to export Mulaut-Haoyue beef to Islamic countries under the Brunei Halal brand," Pg Imran Pg Hj Sabli said. "We are confident that the Brunei Halal brand is a strong brand, and given time and publicity, the Halal brand will penetrate the global halal market," he said of the recently launched seal, which the Sultanate deems will make a splash in Islamic markets chiefly due to its reputation for strict adherence to principles governing food preparation under Islamic teachings.However, at the moment, Ghanim International Food Corp Sdn Bhd has yet to consider Bruneian companies in the initial batches that will carry the seal.We are not concentrating on local production and nearly all of the companies we are working with now are all international companies, about 90 per cent," said Shield, in a previous interview.Once the brand's marketing strategies get on stream though, it should be easier for high-cost SMEs to get on board. Ghanim is the Brunei firm that handles and manages the marketing of the Sultanate's premium halal brand which takes advantage of the country's reputation in selling goods to a growing Muslim market. The firm is looking at major retailers such as Tesco and Carrefour to help sell products registered under the Brunei Halal brand to its target markets.
76
BPM- Weekly Report # 91 Zone 1-Asia
Among some of the objectives for the Brunei Halal brand are giving local firms a platform at gaining a slice of the global halal market, which is estimated at US$580.9 billion and growing rapidly. • Banks to publish true cost of financing ALL banks will publish annual percentage rates when advertising rates for any financing products and in all financing quotations and agreements in a move to be more transparent, a press statement from the Brunei Association of Banks yesterday said. The annual percentage rate or the effective rate is the true cost of financing to the customer, reflecting all financing costs, including any fees charged by a bank for the financing. Costs incurred for payment of third-party services such as actual legal costs for preparing the documentation or valuation fees payable for professional valuation of properties are excluded from this calculation, the industry group said. The move is aimed at helping banking customers compare the actual cost of financing from one institution to another, thereby enhancing transparency and encourage fair competition, the industry group said."We are also committed to ensure all banking advertising and promotional literature is clear and not misleading and that customers are given clear information about banking products and services," said Javed Ahmad, acting chairman of the industry group and also the acting managing director of Bank Islam Brunei Darussalam. The objective is to allow competition and market forces to work and encourage higher standard of banking products and services for the benefit of all banking customers, the group added.The statement said the move is in line with the Ministry of Finance and the Brunei Association of Banks's drive for greater transparency to encourage competition."The Financial Institution Division of the Ministry of Finance and the Brunei Association of Banks are committed to set standards of good banking practice when dealing with customers in Negara Brunei Darussalam," the statement read. • Greater transparency sought from TAP THE Employees Trust Fund (Tabung Amanah Pekerja or TAP) should exercise greater transparency in the way it conducts business to assure contributors their money is safe, said some financial planners and business executives. Contributors have the right to know the details on TAP's investments and retention policy because these affect their retirement fund, said one financial planner who is familiar with the pension fund concept. TAP also owes it to contributors to disclose their operations cost to prevent speculations that monthly contributions are being used to pay for the salaries of the fund's employees, he said.An executive from an information technology (IT) firm said that TAP's transparency on its investments are also important so the public will understand the reasons for any drop or non-distribution of dividends. A TAP representative, requesting not to be named, said: "We have been holding financial roadshows and basically, we have been sharing with our contributors in terms of where we invest our money."Another financial planner said most people think they should have a retention policy, which includes how much they make and disclose it, so when everything is stated, the public will know how much will be re-distributed."There could
77
BPM- Weekly Report # 91 Zone 1-Asia
be a (TAP) retention policy for all we know, but they have never mentioned one, so how would the public know about it?" he asked. He said TAP's investments are "rather unknown" because nothing specific has ever been disclosed.Another matter is how TAP does not disclose their operations costs.A business executive, who wished not to be named, agreed that the pension fund should be more transparent. Contributors are taking risks with TAP by allowing it to invest their money, but when it makes losses people don't get dividends and when profits are reaped, people don't get extra dividends, the financial planner said. The TAP representative said that the funds will still be intact even though there are no dividends for the fiscal years 2008 and 2009."Decrease in returns is basically due to the global financial crisis experienced by everyone. It's not a normal crisis, but faced by all global enterprises," the official said, adding that on their website they have the rate of dividends that were increased since the trust fund's inception in 1993. He said data shows a growth of dividends over the years and there are no fixed dividends. In 1993 it was 1.5 per cent and it increased to 4.25 per cent in 2007/8."What happens next year depends on the performance of markets, it could be higher or lower than the previous dividends. We won't know," said the TAP representative. The financial planner added that the representation of the annual statement shows that contributors are not getting dividends from monthly contributions but only from the previous year."Representation of the statement is unclear, we are contributing monthly and even if we were getting dividends, the statement does not show," he explained.TAP encourages anyone who has questions about the statements to approach their counters, where staff will be more than willing to help.During TAP's appreciation night 2009 on October 3, the Minister of Energy at the Prime Minister's Office, in his capacity as the chairman of the TAP Board, said that they made the decision to not issue any dividends after taking into account the financial crisis and the global recession which have affected the performance of the fund's investments • At Social Front • At environmental Front • Economics Of Climate Change Forum Efforts to increase the level of public awareness of climate change are likely to bear fruit if economic incentives are put in place and policies that condone wasteful consumption are reexamined, Dato Paduka Timothy Ong, acting chairman of the Brunei Economic Development Board (BEDB), said yesterday. In a speech on the economics of climate change, Dato Paduka Ong said the key to meeting climate change challenges is to have economic incentives that may or may not be socially acceptable.He noted that it is clear there are many positive things happening in Brunei with different organisations in the country doing their part in responding to climate change. But in order to efficiently respond to climate change issues, everyone including private individuals and government executives must play their part, he told The Brunei Times. He suggested that creative incentives would help because at public fora, everyone expresses his support but soon forgets it."If there are incentives in place, it can give a
78
BPM- Weekly Report # 91 Zone 1-Asia
higher level of awareness," he said, noting that if there were incentives to re-use plastic bags while shopping it would reduce its usage. Dato Ong said he believed that all human beings are the same and that should there be incentives it would lead to change."Water and electricity are cheap and to move to the next level, there needs to be some form of encouragement to get a more responsible behaviour," he said.He also talked about the possibility of Brunei playing a unique role in exploring hydrocarbon energy because of our forest conversation."It is all up to policy choices, we have plans for self-sufficiency in rice or to build houses for every Bruneian. There needs to be a framework for this (climate change) and the first step is to understand the issue," he said. Dato Ong said it is cheaper to act today than tomorrow."Unfortunately human nature will cause delays which lead back to the point why today, incentives need to come in and give them a push," he added. Investment spent now will lead to more savings in the future and "economy plays a very important part in this", he said. In his speech at the forum entitled "The Economics of Climate Change in Southeast Asia: What is at stake?" organized byBEDB at The Empire Hotel & Country Club, he said: "As long as cars are easy to own and public transportation is inefficient. electricity is cheap and only plastic bags are available at supermarkets," it is unlikely that there will be any change in this area.It all comes down to choices people make government and personal policy choices where each choice involve costs and benefits, he added
79
BPM- Weekly Report # 91 Zone 1-Asia
Business and Politics in the Muslim World Weekly Report Central Asia October 24, 2009 to October 30, 2009 Uzma Siraj
Table of Contents Azerbaijan Political Front……………………………………………………………………….4 Geo Strategic Front………………………………………………………………….4 Economic /Energy Front…………………………………………………………….5 Social Front………………………………………………………………………….5 Kazakastan Political Front………………………………………………………………………..5 Geo Strategic Front………………………………………………………………….6 Economic /Energy Front…………………………………………………………….6 Social Front………………………………………………………………………….6 Kyrgyzstan Political Front………………………………………………………………………..7 Geo Strategic Front………………………………………………………………….7 Economic /Energy Front…………………………………………………………….7 Social Front………………………………………………………………………….8 Tajikistan Political Front………………………………………………………………………..8 Geo Strategic Front…………………………………………………………………..8 Economic /Energy Front……………………………………………………………..8 Social Front…………………………………………………………………………..9 Turkmenistan Political Front………………………………………………………………………...9 Geo Strategic Front…………………………………………………………………..9 Economic /Energy Front……………………………………………………………..9 Social Front…………………………………………………………………………10 Uzbekistan Political Front……………………………………………………………………….10 Geo Strategic Front………………………………………………………………….10 Economic /Energy Front…………………………………………………………….11 Social Front………………………………………………………………………….11 Outline Azerbaijan Political Front
80
BPM- Weekly Report # 91 Zone 1-Asia
• •
People do not believe having won municipal elections, an oppositionist could change something: Azerbaijan Liberal Democratic Party chief Any elections are very important for political parties: Azerbaijani parliamentarian
Geo Strategic Front • Turkish Parliamentary Delegation Arrives In Baku • Top U.S. Official Meets With Azerbaijani Officials, NGOs • Foreign Ministers of Azerbaijan and Armenia will meet OSCE Minsk Group CoChairs in Luxembourg • Security in region requires combined efforts of Caspian littoral states: Azerbaijani deputy FM • Azerbaijan to increase number of peacekeepers in Afghanistan • Palestine to open embassy in Azerbaijan Economic /Energy Front • Turkey is ready to discuss payment of difference in cost of Azerbaijani natural gas • Azerbaijan ranks third for volume of operations with WB in Europe and Central Asia • Turkey will buy Azerbaijani gas at a new price • Azerbaijan not intends to pay off IMF loans ahead of time: minister Social Front • Polish Awards For Azerbaijani Officials Attacked • Statistics of human trafficking-related crimes released in Azerbaijan Kazakastan Political Front • Jailed Kazakh Uranium Company Chief Requests Hospitalization • Two major opposition parties merge in Kazakhstan Geo Strategic Front • Turkey-Kazakhstan relations hit peak • Kazakhstan to promote OSCE common vision of security issues Economic /Energy Front • Kazakhstan will be a part of the Nabucco Project: Turkish president • Samsun-Ceyhan Pipeline Project Designed to Divert Kazakhstani Oil • Kazakhstan prepares for return of good old commercial banking • Kazakhstan may supply gas for Nabucco – energy ministry Social Front • Kazakh Rights Activist Sent To Remote Labor Camp • U.S. Says Concerned With Kazakh Activist Verdict • Kazakhstan’s journalism goes through crisis, survey • Kazakh language development must not be discriminating against residents, Nazarbayev Kyrgyzstan Political Front • Kyrgyz Police Seeking Second Suspect In Journalist's Killing • President’s institute formed in Kyrgyzstan 81
BPM- Weekly Report # 91 Zone 1-Asia
• New Foreign Minister appointed • Opposition criticizes presidential reforms Geo Strategic Front • Hizb ut-Tahrir activists nabbed in Osh Economic /Energy Front • Kyrgyzstan To Pay Gas Debt To Uzbekistan • State-owned privatization to get through stock exchange in Kyrgyzstan • Kazakhstan to step out of Central Asian energy system Social Front • At least 88% of Kyrgyz internal migrants move in search for jobs • Child social security system is disintegrated in Kyrgyzstan Tajikistan Political Front • President promises to take efforts to ensure holding parliamentary elections at high level Geo Strategic Front • Tajik President's Moscow Talks Inconclusive • President Rahmon holds a number of meetings in Moscow • Tajikistan will not get money from Russia for military base until 2014 • U.S. CENTCOM commander visits Tajikistan Economic /Energy Front • Russia to build three small power plants in Tajikistan • Iranian energy official gets acquainted with implementation of Iran-supported projects in Tajikistan • Tajikistan, Poland to sign economic cooperation agreement Social Front • EU-UNDP Project helps to reduce drug addiction in prisons • WEF’s Global Gender Gap Report 2009 ranks Tajikistan 87th out of 134 economies • A number of events dedicated to Unite Nations Day held in Dushanbe today Turkmenistan Political Front Geo Strategic Front • Diplomatic corps of Turkmenistan meets on Caspian Sea coast Economic /Energy Front • Turkmenistan completes section of gas line to China • Turkmenistan appoints representatives to IFAS and COMCEC • Members of Turkmen-American Business Council outline plans for cooperation Social Front • Turkmen Environmental Activist Given Five-Year Jail Term • Moscow Protest Over Turkmen Environmentalist's Arrest • Turkmen Police Arrest Green Activist, HRW Says
82
BPM- Weekly Report # 91 Zone 1-Asia
• • •
Barack Obama congratulates President and people of Turkmenistan on Independence Day Ashgabat hosts XII Conference of World Turkmens Turkmenistan celebrates 18th anniversary of independence
Uzbekistan Political Front • Uzbekistan: The number of deputy Prime-Ministers is down to six Geo Strategic Front • Pakistani Troops Capture Town Used By Uzbek Militants • Uzbekistan: Authorities take 27 suspected Islam militants into custody • European Union dropped last sanctions against Uzbekistan Economic /Energy Front • Uzbekistan: The parliament promises to create one million jobs in 2010 • Uzbekistan: LG refrigerators to be produced in Samarqand Social Front • Another Uzbek Student Dies During Cotton Harvest • EU Lifts Uzbek Sanctions Despite Rights Concerns Summery Azerbaijan Political Front • People do not believe having won municipal elections, an oppositionist could change something: Azerbaijan Liberal Democratic Party chief “Currently, our party is nominating candidates and collecting signatures,” Azerbaijan Liberal Democratic Party Chief Fuad Aliyev said commenting on his party’s preparation for the coming municipal elections. • Any elections are very important for political parties: Azerbaijani parliamentarian "The list of candidates for municipal elections was defined at the meeting of political council of our party,” Chairman of the opposition Azerbaijan Democratic Reforms Party (ADRP) and member of the Azerbaijani Milli Majlis (parliament) Asim Mollazade said. Geo Strategic Front • Turkish Parliamentary Delegation Arrives In Baku A Turkish parliamentary delegation has arrived in the Azerbaijani capital, Baku, for a visit aimed at easing tensions over Turkey's rapprochement with Armenia, RFE/RL's Azerbaijani Service reports. • Top U.S. Official Meets With Azerbaijani Officials, NGOs Visiting U.S. Assistant Secretary of State for European and Eurasian Affairs Tina Kaidanow met with Azerbaijani officials and representatives of nongovernmental organizations in Baku, RFE/RL's Azerbaijani Service reports • Foreign Ministers of Azerbaijan and Armenia will meet OSCE Minsk Group CoChairs in Luxembourg The Co-Chairs of the OSCE Minsk Group, Ambassadors Yury Merzlyakov of Russia, Bernard Fassier of France, and Robert Bradtke of the United States will meet Azerbaijani Foreign Minister Elmar Mammadyarov and Armenian Foreign Minister Edward
83
BPM- Weekly Report # 91 Zone 1-Asia
Nalbandian in Luxembourg on October 25-27, says the statement by the Co-Chairs, released at the official Web site of organization on Friday. • Security in region requires combined efforts of Caspian littoral states: Azerbaijani deputy FM Today the chief aim of Caspian littoral states is to combine efforts to ensure security in the region amid the world globalization, said Deputy Foreign Minister of Azerbaijan Khalaf Khalafov. • Azerbaijan to increase number of peacekeepers in Afghanistan The number of the Azerbaijani servicemen serving in International Security Assistance Force (ISAF) in Afghanistan will be increased, sources in the government told said. • Palestine to open embassy in Azerbaijan Palestine will open embassy in Azerbaijan. The decision in this respect was made during Azerbaijani and Palestinian foreign ministers’ meeting in Baku. Palestinian Foreign Minister Riyad al-Maliki payed a two-day visit to Azerbaijan on Oct. 29. Economic /Energy Front • Turkey is ready to discuss payment of difference in cost of Azerbaijani natural gas Turkey will pay difference in price for the natural gas it bought from Azerbaijan after 2008, Turkey’s Energy and Natural Resources Minister Taner Yildiz, who is visiting Iran together with Prime Minister Recep Tayyip Erdogan, said. • Azerbaijan ranks third for volume of operations with WB in Europe and Central Asia Agreements on financing of 50 projects totaling $2.607 billion were signed during the period of the World Bank operations in Azerbaijan, Azerbaijani Vice Prime Minister Abid Sharifov said. • Turkey will buy Azerbaijani gas at a new price Turkey will pay the difference between the old price it has paid for Azerbaijani gas since April 2008 after the gas agreement expired and the new price to be agreed on with Azerbaijan, said Turkish Energy Minister Taner Yilldiz. • Azerbaijan not intends to pay off IMF loans ahead of time: minister The Azerbaijani Ministry of Finance does not consider it necessary to premature pay off the loans of the International Monetary Fund. Finance Minister Samir Sharifov said that the Central Bank of Azerbaijan on schedule pays off IMF loans. Social Front • Polish Awards For Azerbaijani Officials Attacked Poland's decision last week to award a number of Azerbaijani officials with Poland's highest orders has provoked critical reactions both there and in Azerbaijan, RFE/RL's Azerbaijani Service reports. • Statistics of human trafficking-related crimes released in Azerbaijan A total of 71 human trafficking cases were registered and 18 groups and one organized group was neutralized and totally 65 criminals were unmasked in Azerbaijan in the past period of 2009, a report by the National Coordinator on Combating Human Trafficking said. Kazakastan Political Front • Jailed Kazakh Uranium Company Chief Requests Hospitalization 84
BPM- Weekly Report # 91 Zone 1-Asia
The former president of Kazakhstan's Uranium-producing giant KazAtomProm says he needs to be hospitalized, RFE/RL's Kazakh Service reports • Two major opposition parties merge in Kazakhstan The delegates to a congress of the two major Kazakh opposition parties, the National Social-Democratic Party and Azat (Freedom), have decided to merge into one party called National Social Democratic Party Azat.National Social Democratic Party leader Zharmakhan Tuyakbai and Azat leader Bulat Abilov announced the unification plans several days ago. Geo Strategic Front • Turkey-Kazakhstan relations hit peak Following an almost decade-and-a-half stall in Turkey's active engagement in brethren Turkic countries in Central Asia during the late Turkish president Turgut Özal's tenure, Turkey has started to build strong and lasting political and economic relations with Central Asian countries • Kazakhstan to promote OSCE common vision of security issues Kazakhstan plans to promote a common security vision in its chairmanship of the Organization for Security and Cooperation in Europe (OSCE) in 2010, Kazakh Deputy Defense Minister Lt. Gen. Bulat Sembinov told a Monday press briefing. Economic /Energy Front • Kazakhstan will be a part of the Nabucco Project: Turkish president . Turkish President Abdullah Gul said Friday there were strong reasons for Turkey and Kazakhstan to work together, Anadolu Agency reported. Speaking at the Turkish-Kazakh Business and Investment Forum in Istanbul, Gul said that he invited the businessmen of the two countries to cooperate more. • Samsun-Ceyhan Pipeline Project Designed to Divert Kazakhstani Oil Russia and Turkey, with Italy in tow, have seemingly struck a grand oil and gas bargain in the Black Sea. On October 19 in Milan, government ministers and corporate officials from the three countries signed agreements to move ahead with the Russian South Stream gas pipeline on the seabed and, concurrently, a Novorossiysk-Samsun-Ceyhan oil transport system centered on a pipeline across Anatolia. • Kazakhstan prepares for return of good old commercial banking . Now that Kazakhstan’s economy is starting to revive, the country’s major banks are preparing for a resumption of growth in the sector - but a period of more cautious and conservative growth. • Kazakhstan may supply gas for Nabucco – energy ministry Kazakhstan may supply gas for Nabucco project if there are available gas volumes, said Meiram Kanapyanov, the director of the multilateral cooperation department of the Kazakh Ministry of Energy and Mineral Resources. Social Front • Kazakh Rights Activist Sent To Remote Labor Camp Leading Kazakh human rights activist Yevgeny Zhovtis has been transferred from Almaty to a labor camp in northeastern Kazakhstan, RFE/RL's Kazakh Service reports. Zhovtis, director of the nongovermental organization Bureau of Human Rights, was sentenced to four years in prison last month for accidentally striking and killing a man with his car. • U.S. Says Concerned With Kazakh Activist Verdict 85
BPM- Weekly Report # 91 Zone 1-Asia
The United States has criticized a tough sentence for a Kazakh human rights activist handed down months ahead of Kazakhstan's chairmanship of a European human rights body. • Kazakhstan’s journalism goes through crisis, survey The international center of journalism, MediaNet, after surveying 350 reporters, editorsin-chiefs and media owners concluded that the development of Kazakhstan’s journalism has frozen. "Over 50% journalists believe that the Kazakh media is stagnating,” MediaNet director Vyacheslav Abramov said at a press conference on Thursday at the Interfax-Kazakhstan press center in Almaty on Thursday. • Kazakh language development must not be discriminating against residents, Nazarbayev The international center of journalism, MediaNet, after surveying 350 reporters, editorsin-chiefs and media owners concluded that the development of Kazakhstan’s journalism has frozen. "Over 50% journalists believe that the Kazakh media is stagnating,” MediaNet director Vyacheslav Abramov said at a press conference on Thursday at the Interfax-Kazakhstan press center in Almaty on Thursday. Kyrgyzstan Political Front • Kyrgyz Police Seeking Second Suspect In Journalist's Killing Kyrgyzstan's Interior Ministry says that a second suspect is being sought in the 2007 murder of independent journalist Alisher Saipov, RFE/RL's Kyrgyz Service reports. • President’s institute formed in Kyrgyzstan The President of Kyrgyzstan has signed a decree on establishment of government bodies, forming the president’s institute. The following government bodies have been established to “create condition for formation of national and state ideology, rational balance between innovations and traditions, state government bodies and interests of groups, conduction of dialogue and securing of partnership between the state authority and civil society:” • New Foreign Minister appointed Kadyrbek Sarbaev was again appointed a Kyrgyz Minister of Foreign Affairs as the President Bakiev signed a relevant decree in Bishkek on Monday. • Opposition criticizes presidential reforms Kyrgyz opposition has spread an official statement, harshly criticizing the just-started governmental reforms pushed by the president Bakiev. “Despite the large-scale propaganda the reform is just a cover for consolidation of power in the president’s hands. Geo Strategic Front • Hizb ut-Tahrir activists nabbed in Osh Three Hizb ut-Tahrir activists have been nabbed in Osh (Kyrgyzstan), press service of the Interior Ministry of Kyrgyzstan reported. Economic /Energy Front • Kyrgyzstan To Pay Gas Debt To Uzbekistan Kyrgyzstan plans to pay its debt for Uzbek natural gas by December 1, RFE/RL's Kyrgyz Service reports. Deputy Prime Minister Akylbek Japarov told RFE/RL that the gas debt will be discussed by the Kyrgyz parliament on October 30. • State-owned privatization to get through stock exchange in Kyrgyzstan
86
BPM- Weekly Report # 91 Zone 1-Asia
Privatization of state-owned stakes will get through the Kyrgyzstan stock exchange for the first time in years, one of the Bishkek finance companies said. The Kyrgyz Stock Exchange officially informed about the auction sale of three companies’ state-owned stakes to run on October 30, 2009. • Kazakhstan to step out of Central Asian energy system Kazakhstan intends to step out of the Central Asian energy system, the Kazakh media reported. According to the Kazakhstan Electricity Grid Operating Company (KEGOC), Kazakh energy system is able to provide the internal suppliers and support Kyrgyzstan Social Front • At least 88% of Kyrgyz internal migrants move in search for jobs About 88% internal migrants of Kyrgyzstan move in search for jobs, the American University in Central Asia’s survey said • Child social security system is disintegrated in Kyrgyzstan Analytical study Evaluation of Child Protection System, held by an international expert Irina Malanchuk, with assistance of UNICEF in Kyrgyzstan says that child social security system in our country is disintegrated. Tajikistan Political Front • President promises to take efforts to ensure holding parliamentary elections at high level President Emomali Rahmon who is also leader of ruling People’s Democratic Party (PDPT) has promised to take efforts to ensure holding of the upcoming parliamentary elections at the high level and within the framework of law. Geo Strategic Front • Tajik President's Moscow Talks Inconclusive Tajik President Emomali Rahmon's talks with Russian counterpart Dmitry Medvedev near Moscow have produced no significant results, RFE/RL's Tajik Service reports. • President Rahmon holds a number of meetings in Moscow President Emomali Rahmon’s state visit to Russia concluded and he returned to Dushanbe Friday evening, according to presidential press service. On October 21, President Rahmon and his Russian counterpart, President Dmitry Medvedev, had an informal meeting at the Moscow regional presidential residence Barvikha. • Tajikistan will not get money from Russia for military base until 2014 Under an agreement signed between Tajikistan and Russia in October 2004, Russian military base 201 in Tajikistan will work here on an unpaid basis until 2014, Tajik Foreign Minister Hamrokhon Zarifi told reporters in Dushanbe today. • U.S. CENTCOM commander visits Tajikistan , General David H. Petraeus, Commander, U.S. Central Command (CENTCOM), met with President Emomali Rahmon and a number of Tajik military officials during his October 26 visit to Tajikistan. According to presidential press service, in the course of the talks, President Rahmon noted that Tajikistan was interested in establishment of lasting peace in Afghanistan and ready to expand its cooperation with the United States in that and other directions. Economic /Energy Front • Russia to build three small power plants in Tajikistan
87
BPM- Weekly Report # 91 Zone 1-Asia
Russia plans to build three small hydropower plants in Tajikistan and hopes to obtain a controlling stake in the project, the Russian energy minister said Sunday (October 25), RIA Novosti reported. • Iranian energy official gets acquainted with implementation of Iran-supported projects in Tajikistan -- Iran’s Deputy Minister of Energy, Hamid Chitchian, heading an Iranian delegation, paid a two-day visit to Tajikistan on October 22-23. According to the Iranian Embassy in Dushanbe, the purpose of the visit was for to hold discussions with a number of Tajik officials and get acquainted with the process of implementation of the Iran-sponsored projects in Tajikistan. • Tajikistan, Poland to sign economic cooperation agreement Tajik-Polish political and economic consultations will begin in Tajikistan next week, Slavomir Stsalkowski, the Counselor of Polish Embassy in Tajikistan, told reporters in Dushanbe yesterday. Social Front • EU-UNDP Project helps to reduce drug addiction in prisons Today, the EU-UNDP Central Asia Drug Action Programme (CADAP) handed over computers, office and household equipment, and sport inventory to the “SPIN Plus” organization for further use at the “Half-Way House” for drug addicts at the Prison Central Hospital located in Dushanbe, according to the Delegation of the European Commission in Tajikistan. • WEF’s Global Gender Gap Report 2009 ranks Tajikistan 87th out of 134 economies The World Economic Forum’s (WEF) Global Gender Gap Report 2009 ranks Tajikistan 87th out of 134 economies. According to the report, Tajikistan gains two places in the rankings improving its scores on the labor force participation subindex. • A number of events dedicated to Unite Nations Day held in Dushanbe today A number of events dedicated to the United Nations Day are being held in Dushanbe today. According the UNDP CO in Tajikistan, a concert of classical music, conducted by the Italian director Gerardo Collela is being held at the Opera and Ballet Theatre in Dushanbe today afternoon. An exhibition of activities of the UN agencies in Tajikistan has also been organized at the theatre. Turkmenistan Political Front Geo Strategic Front • Diplomatic corps of Turkmenistan meets on Caspian Sea coast The enlarged meeting of the diplomatic corps of Turkmenistan tool place in the coastal town of Turkmenbashi on October 29. Heads of diplomatic missions and consulates of Turkmenistan abroad and representatives of the Humanitarian Association of World Turkmens participated in the meeting. Economic /Energy Front • Turkmenistan completes section of gas line to China Turkmenistan has completed construction on its 188-km section of a 7,000-km natural gas pipeline that extends from Turkmenistan to China, according to official media. • Turkmenistan appoints representatives to IFAS and COMCEC 88
BPM- Weekly Report # 91 Zone 1-Asia
President Gurbanguly Berdimuhamedov signed a decree according to which Vice Premier Myratgeldy Akmammedov has been appointed member of the Board of the International Fund for Saving the Aral Sea from Turkmenistan. • Members of Turkmen-American Business Council outline plans for cooperation A meeting of the Turkmen-American Business Council (TABC) was held in Ashgabat. It was attended by a high-profile delegation of the U.S. business elite led by executive director of TABC Eric Stewart. Social Front • Turkmen Environmental Activist Given Five-Year Jail Term Prominent Turkmen environmental activist Andrei Zatoka has been sentenced to five years in prison for hooliganism, RFE/RL's Turkmen Service reports. Zatoka, 53, was found guilty in a court in Dashoguz of attacking a man in a market in the northern Turkmen city on October 20. • Moscow Protest Over Turkmen Environmentalist's Arrest -- Activists demonstrated at the Turkmen Embassy in Moscow to protest the arrest in Turkmenistan of environmentalist Andrei Zatoka, RFE/RL's Turkmen Service reports. On October 27, some 20 protesters held signs saying "Freedom For Zatoka," "No to repression in Turkmenistan," and "Eight-day investigation reminds us of the Stalin era!" • Turkmen Police Arrest Green Activist, HRW Says Police in the Central Asian state of Turkmenistan have arrested a prominent environmental activist in what appeared to be a politically motivated action, Human Rights Watch (HRW) has said. Andrei Zatoka was arrested in the city of Dashoguz this week after being attacked by a stranger at a market, HRW said in a statement on October 23. • Barack Obama congratulates President and people of Turkmenistan on Independence Day President of Turkmenistan Gurbanguly Berdimuhamedov received a message from U.S. President Barack Obama. As the Turkmenistan.ru correspondent reports from Ashgabat, the message was published today in the central print media of the country. • Ashgabat hosts XII Conference of World Turkmens The XII Conference of the Humanitarian Association of World Turkmens (HAWT) was held in Ashgabat on October 23. The conference brought together representatives of the Turkmen diasporas from 18 states and delegates from all parts of Turkmenistan. • Turkmenistan celebrates 18th anniversary of independence Turkmenistan marks the main national holiday - Independence Day. By tradition, the day began with a flower-laying ceremony at the Monument of Independence, which was attended by President of Turkmenistan Gurbanguly Berdimuhamedov Uzbekistan Political Front • Uzbekistan: The number of deputy Prime-Ministers is down to six 27 Rustam Kasymov, the deputy Prime-Minister of Uzbek government in charge of social issues, science, education, healthcare, culture and contacts with CIS partners, was released from his position, Uzmetronom.com reports. Geo Strategic Front • Pakistani Troops Capture Town Used By Uzbek Militants
89
BPM- Weekly Report # 91 Zone 1-Asia
Pakistani troops have surrounded Kaniguram, a key base for Uzbek Islamic militants in Pakistan's South Waziristan region, RFE/RL's Uzbek Service reports. The town overlooks Karama, a city reportedly being used as a training base for foreign terrorist groups like the Islamic Movement of Uzbekistan (IMU). • Uzbekistan: Authorities take 27 suspected Islam militants into custody Twenty-seven individuals have been arrested in Uzbekistan on suspicion of religious extremism. A source tells EurasiaNet the authorities are building a case that connects the detainees to a series of murders in Tashkent during the summer. Economic /Energy Front • Uzbekistan: The parliament promises to create one million jobs in 2010 On October 29 the legislative house of Olyi Mazhlis (the parliament) of Uzbekistan approved jobs creation and public employment program for 2010, according to which 950 thousand new jobs will be created in the republic, Gazeta.uz reports. Specifically, over 280 thousand jobs are to be established in service sector, 210 thousand jobs – in outwork and over 60 thousand jobs – in development of production and social infrastructure. • Uzbekistan: LG refrigerators to be produced in Samarqand By the end of 2009 OJSC SINO, based in Samarqand (Uzbekistan), will start the production of LG Electronics refrigerators. At this point, the final installation of refrigerators assembly line, based on the technology of famous South Korean company, is in progress. Social Front • Another Uzbek Student Dies During Cotton Harvest A 10th young person has died in Uzbekistan while involved in compulsory work on the cotton harvest, RFE/RL's Uzbek Service reports. A witness told RFE/RL that a bus filled with students overturned as it was driving into a cotton field near the western city of Urgench, and one boy died as a result. • EU Lifts Uzbek Sanctions Despite Rights Concerns The European Union has lifted sanctions on Uzbekistan, despite concerns about human rights in the former Soviet republic. Although many EU states are concerned about the rights situation, the 27-country bloc wants to boost relations with a country that could be an important energy supplier and a route for supplies for the Western military mission in Afghanistan. Detailed Report Azerbaijan Political Front • People do not believe having won municipal elections, an oppositionist could change something: Azerbaijan Liberal Democratic Party chief “Currently, our party is nominating candidates and collecting signatures,” Azerbaijan Liberal Democratic Party Chief Fuad Aliyev said commenting on his party’s preparation for the coming municipal elections. “Our party will nominate about 1,000 candidates, that is, for more than half of municipalities,” he said. He said the party is in the first stage of election campaign and collection of signatures proceeds with difficulty. "The fact is that voters do not trust the candidates, no matter from what party. They basically do not believe in the municipalities which is a big problem. Theoretically, when the creation of
90
BPM- Weekly Report # 91 Zone 1-Asia
the first municipalities in1999, they should have granted opportunities. But over the years, on the contrary, they have diminished opportunities. Therefore, voters hardly give signature,” Aliyev said. "The population of the country have distrust in the municipalities. People do not believe that having won municipal elections, an oppositioner can make a difference, can somehow have influence the regional level. But I think that our candidates still gather the required number of signatures,” he added. ALDP chief said that once the registration of candidates completes, "we will try to increase public confidence in the candidates, tell about the candidates and will issue their platforms - in this area we can work and convince the public".Azerbaijan will hold municipal elections on Dec. 23. Elections will be held for 15, 682 places in the 1, 718 municipalities. All voters besides those with the status of internally displaced persons are illegible to participate in the municipal elections. Voting will take place in 118 constituencies. Starting from Oct. 8 individuals participating in the municipal elections can nominate for the elections. The campaign to collect signatures will continue till Nov. 13. Those who nominate themselves as candidates must submit signatures of voters to the election commissions no later than Nov. 13. Lists with signatures received after this date will not be accepted According to the schedule, the registration of observers in the CEC will continue until Dec. 13 and in the district electoral commissions - till Dec. 18. Organizations willing to hold “exit poll” are required submit documents to the CEC till Dec. 3. • Any elections are very important for political parties: Azerbaijani parliamentarian "The list of candidates for municipal elections was defined at the meeting of political council of our party,” Chairman of the opposition Azerbaijan Democratic Reforms Party (ADRP) and member of the Azerbaijani Milli Majlis (parliament) Asim Mollazade said. He said presently candidates design signature sheets. "I think a few more candidates will be added to the total number of candidates nominated by us, and their total number will be several hundred people. We will try to cover half of all urban municipalities. The exact number of our candidates will be determined after the registration completes,” the MP said. Mollazade said that after this the party will continue to prepare for the participation of candidates in municipal elections. "We have already held several workshops and trainings for our regional organizations in Baku. We will continue to conduct joint training with international organizations,” he said. The ADRP chairman also noted importance of the upcoming municipal elections."I think any elections are very important for political parties to be in the form they need. Also, I think municipalities are foundation of democracy, because in any society, democracy does not begin from the top, but vice versa,” Mollazade said. Azerbaijan will hold municipal elections on Dec. 23. Elections will be held for 15, 682 places in the 1, 718 municipalities. All voters besides those with the status of internally displaced persons are illegible to participate in the municipal elections. Voting will take place in 118 constituencies. Starting from Oct. 8 individuals participating in the municipal elections can nominate for the elections. The campaign to collect signatures will continue till Nov. 13. Those who nominate themselves as candidates must submit signatures of voters to the election commissions no later than Nov. 13. Lists with signatures received after this date will not be accepted According to the schedule, the registration of observers in the CEC will continue until Dec. 13 and in the district electoral commissions - till Dec. 18.
91
BPM- Weekly Report # 91 Zone 1-Asia
Organizations willing to hold “exit poll” are required submit documents to the CEC till Dec. 3. Geo Strategic Front • Turkish Parliamentary Delegation Arrives In Baku BAKU -- A Turkish parliamentary delegation has arrived in the Azerbaijani capital, Baku, for a visit aimed at easing tensions over Turkey's rapprochement with Armenia, RFE/RL's Azerbaijani Service reports. The Turkish Embassy in Baku told RFE/RL that the delegation consists of 10 members of Turkey's Grand National Assembly and will hold talks with several key Azerbaijani officials, including President Ilham Aliyev and parliament speaker Oktay Asadov. The Turkish lawmakers will also take part on October 29 in a special event in Baku's Gulistan Palace devoted to Turkish independence day, which was established on October 29, 1923. Turkish-Azerbaijani relations became tense after Turkish-Armenian protocols that could lead to improved relations were signed in Zurich on October 10. Aliyev made very critical comments about Turkey during a cabinet session on October 16. • Top U.S. Official Meets With Azerbaijani Officials, NGOs BAKU -- Visiting U.S. Assistant Secretary of State for European and Eurasian Affairs Tina Kaidanow met with Azerbaijani officials and representatives of nongovernmental organizations in Baku, RFE/RL's Azerbaijani Service reports. Baku-based political observer Hikmet Gadjizade told RFE/RL that at the meeting with NGOs on October 23 Kaidanow discussed democratization, human rights, and freedom of speech and the media, as well as the case of the detained Azerbaijani bloggers. According to Gadjizade, Kaidanow stressed at the meeting that Washington is monitoring the democratization process and will be assisting with any problems. Kaidanow also held talks with Azerbaijani President Ilham Aliyev. This is Kaidanow's first visit to Azerbaijan since taking her post in August. Kaidanow also visited Armenia this week, where she held talks with Armenian President Serzh Sarkisian and Foreign Minister Eduard Nalbandian. • Foreign Ministers of Azerbaijan and Armenia will meet OSCE Minsk Group CoChairs in Luxembourg The Co-Chairs of the OSCE Minsk Group, Ambassadors Yury Merzlyakov of Russia, Bernard Fassier of France, and Robert Bradtke of the United States will meet Azerbaijani Foreign Minister Elmar Mammadyarov and Armenian Foreign Minister Edward Nalbandian in Luxembourg on October 25-27, says the statement by the Co-Chairs, released at the official Web site of organization on Friday. "The Co-Chairs will also travel to Luxembourg on October 25-27 to meet Armenian Foreign Minister Nalbandian and Azerbaijani Foreign Minister Mammadyarov. They will address plans for their next trip to Baku and Yerevan in November and preparation for discussion of the NagornoKarabakh settlement at the OSCE Ministerial Council in December 2009", the statement says. According to statement, the Co-Chairs attended a "Retreat on OSCE Mediation Activities" hosted on October 22-23 by the OSCE Conflict Prevention Center in Vienna, Austria. After the retreat, the Co-Chairs provided a quarterly briefing to the OSCE Minsk Group. "On the margins of the retreat, each Ambassador individually participated in different bilateral meetings with a variety of interlocutors, including, among others, Greek Ambassador Marinaki, representing the OSCE Chairman-in-Office; OSCE Secretary General Perrin de Brichambaut; Armenian Ambassador Hovakimian;
92
BPM- Weekly Report # 91 Zone 1-Asia
Azerbaijani Ambassador Ismayilov; Kazakh Ambassador Abdrakhmanov; Swedish Ambassador Bard-Bringeus, representing the EU presidency; and Turkish Deputy Undersecretary Cevikoz", the statement says. • Security in region requires combined efforts of Caspian littoral states: Azerbaijani deputy FM Today the chief aim of Caspian littoral states is to combine efforts to ensure security in the region amid the world globalization, said Deputy Foreign Minister of Azerbaijan Khalaf Khalafov. "We're in a way of new cooperation, at this meeting we developed a general concept for the realization of common goals in a specific project," Khalafov said to press conference on the results of the meeting on security in the Caspian region. The deputy minister said that Azerbaijan had developed a draft agreement, which was presented to the representatives of the Caspian states. He said the project envisages significant collaboration in combating terrorism, organized crime, arms trafficking and human trafficking, drug trafficking and smuggling. This project is planned to be discussed in Baku in the first quarter of 2010, Khalafov said, expressing hope that at future meetings this project will be approved. "I believe that there are great prospects for this cooperation, which will be used for turning the Caspian Sea into a peaceful water area," said Khalafov. He noted that the meetings in Baku discussed only security issues. The question of the status of the Caspian Sea was not discussed, Khalafov said. "There are many issues to be discussed at the experts' level," he said. • Azerbaijan to increase number of peacekeepers in Afghanistan The number of the Azerbaijani servicemen serving in International Security Assistance Force (ISAF) in Afghanistan will be increased, sources in the government told said. According to the source, taking into account the request of NATO and Afghanistan government, the related bodies are doing paperwork. The necessary documents will be possibly submitted to the parliament soon. It is reported that at the meeting of NATO defense ministers and ISAF defense ministers in Bratislava (Slovakia) last week Azerbaijan gave an oral agreement to increase its military contingent. According to the agreement, NATO will assume the expenses of the personnel and material-technical provision. Member of Azerbaijani parliament’s committee for security and defense Zahid Oruj said number of Azerbaijani peacekeepers in Afghanistan may be increased.“Azerbaijan may increase its forces in Afghanistan. As far as I know, NATO and Afghanistan requested it. Such a proposal must be made by the head of state to the parliament,” he said. • Palestine to open embassy in Azerbaijan Palestine will open embassy in Azerbaijan. The decision in this respect was made during Azerbaijani and Palestinian foreign ministers’ meeting in Baku. Palestinian Foreign Minister Riyad al-Maliki payed a two-day visit to Azerbaijan on Oct. 29. Al-Maliki discussed cooperation on international arena, ways to resolve Middle East and NagornoKarabakh problems at a meeting with Azerbaijani counterpart Elmar Mammadyarov The ministers also decided to open Palestine’s embassy in Azerbaijan. The Palestinian diplomat will also meet Speaker of Azerbaijani Milli Majlis (parliament) Ogtay Asadov. Economic /Energy Front • Turkey is ready to discuss payment of difference in cost of Azerbaijani natural gas
93
BPM- Weekly Report # 91 Zone 1-Asia
Turkey will pay difference in price for the natural gas it bought from Azerbaijan after 2008, Turkey’s Energy and Natural Resources Minister Taner Yildiz, who is visiting Iran together with Prime Minister Recep Tayyip Erdogan, said. Yildiz said Azerbaijani delegation will arrive in Ankara to continue the talks on natural gas on Oct. 28. Yildiz also said that Turkey will sign natural gas contract will be signed with Iran as well. Under the contract, Iran will deliver 35 bn cu m gas to Europe via Turkey. • Azerbaijan ranks third for volume of operations with WB in Europe and Central Asia Agreements on financing of 50 projects totaling $2.607 billion were signed during the period of the World Bank operations in Azerbaijan, Azerbaijani Vice Prime Minister Abid Sharifov said. "Today Azerbaijan has already completed realization of 26 projects for financing of which the Bank has allocated $585 million. Currently 24 projects worth 2.022 billion are under implementation,” Sharifov said. The Bank issued 54 percent of funds for transport sector, 22 per cent - water supply and sewerage system, 8 percent environmental protection, 7 percent - social sector, 4 percent - institution building and three percent for the education and agriculture. "In recent years the World Bank portfolio in Azerbaijan has more than doubled, and the country has successfully implemented funding from the International Bank for Reconstruction and Development,” the vice prime minister said. Under the current strategy on bank operations in the country, it was decided to allocate more than $200 million to finance road construction and to boost capacity in formulating public investment programs in 2009. "Currently Azerbaijan has the third largest WB portfolio in Europe and Central Asia after Turkey and Kazakhstan,” Sharifov said. “It is not surprising that the government consultations on the definition of long-term prospects of socio-economic development of Azerbaijan is being held with high-rank WB officials,” he said. • Turkey will buy Azerbaijani gas at a new price Turkey will pay the difference between the old price it has paid for Azerbaijani gas since April 2008 after the gas agreement expired and the new price to be agreed on with Azerbaijan, said Turkish Energy Minister Taner Yilldiz. He said Turkey has continued to import natural gas from Azerbaijan although the gas supply agreement expired in April 2008. "Today we no longer buy low-priced gas from Azerbaijan. In accordance with the new price to be agreed upon, we will pay the difference", he said, adding that Turkey is continuing talks with Azerbaijan’s SOCAR on natural gas, and hopes to reach an agreement soon. Turkish media report that Turkey will have to pay at least $1.1 billion to Azerbaijan as price difference compensation if the new gas price is around $250 per 1,000 cubic meters, compared to the current price of $120. • Azerbaijan not intends to pay off IMF loans ahead of time: minister The Azerbaijani Ministry of Finance does not consider it necessary to premature pay off the loans of the International Monetary Fund. Finance Minister Samir Sharifov said that the Central Bank of Azerbaijan on schedule pays off IMF loans. "The Central Bank manages these loan resources. A small amount of debt remained. We do not consider it necessary to prematurely pay them off," minister said. Sharifov said that Azerbaijan does not intend to appeal to IMF for credit support in future. Social Front • Polish Awards For Azerbaijani Officials Attacked
94
BPM- Weekly Report # 91 Zone 1-Asia
BAKU -- Poland's decision last week to award a number of Azerbaijani officials with Poland's highest orders has provoked critical reactions both there and in Azerbaijan, RFE/RL's Azerbaijani Service reports. Polish President Lech Kaczynski on October 17 presented Azerbaijani Interior Minister Ramil Usubov and National Security Ministry head Eldar Mahmudov with the Officer Grand Cross. Foreign Minister Elmar Mammadyarov and Energy and Industry Minister Natiq Aliyev received the Medal of Commander Grand Cross. Isa Qambar, the head of the oldest Azerbaijani opposition party, Musavat, told RFE/RL that Poland has honored an authoritarian regime out of political and economic considerations. Pawel Wosik, director of the Eastern Foundation in Poland and coordinator of the eastern program at the Forum of Young Diplomats, told RFE/RL that he received "this information with embarrassment and disbelief." "The awarded ministers are part of the regime that acts against the democratic opposition and independent media," Wosik said. The Polish presidential press office supplied RFE/RL with a written statement about the honors."During official visits of presidents, it is a common and globally accepted practice to award state decorations to distinguished individuals who contributed to developing relations between certain countries," the statement reads. • Statistics of human trafficking-related crimes released in Azerbaijan A total of 71 human trafficking cases were registered and 18 groups and one organized group was neutralized and totally 65 criminals were unmasked in Azerbaijan in the past period of 2009, a report by the National Coordinator on Combating Human Trafficking said. The report said 47 of 82 human trafficking victims, including one child were sent to the rehabilitation centers where they received legal, medical and psychological assistance. Most of them were reintegrated into the society; 17 were provided with jobs and 32 were sent to the different vocational courses where they received certificates. Azerbaijan Owners Confederation supported 9 of them“Children received relevant assistance and one of them was placed to the boarding school by the Ministry of Education and three – to the kindergartens. Significant measures were taken to improve work toward legal, medical and psychological aid to the human trafficking victims and additional health centers were created to provide them with medical aid. Most of the victims were checked up and received necessary aid. A total of 76 human trafficking victims received single money compensations, 43 received aid from the Human Trafficking Victims Support Fund and according to the court decisions 11 people received compensation for material damage they suffered as a result of crimes. Eight of 5,163 calls received on hotline were about human trafficking, 27 – about immoral places and involvement in prostitution. Other calls were about the job searches and education in foreign countries, marriages with foreigners and etc. About 160 people were brought to justice for 217 criminal cases, including 72 involvements in prostitution, 134 keeping the immoral places. As many as 749 women involved in prostitution were administratively punished; 1,185 people were brought to justice for 1298 human trafficking facts found out in 2005-2008 and in the past period of this year. A total of 192 criminal groups, including 15 organized groups were neutralized. Kazakastan Political Front • Jailed Kazakh Uranium Company Chief Requests Hospitalization
95
BPM- Weekly Report # 91 Zone 1-Asia
ASTANA -- The former president of Kazakhstan's Uranium-producing giant KazAtomProm says he needs to be hospitalized, RFE/RL's Kazakh Service reports. Mukhtar Dzhakishev was released from the hospital and returned to the National Security Committee's (KNB) detention center in Astana on October 21. His lawyer, Nurlan Beisekeyev, told RFE/RL that he saw his client on October 26 and that he looked very sick. Dzhakishev told Beisekeyev that detention center officials had to call an ambulance for him because he had high blood pressure. Last week, Dzhakishev passed out and again an ambulance was called. Beisekeyev says he is not able to obtain his client's medical files with more information about his health problems. KNB officials told RFE/RL that Dzhakishev does not need hospitalization. Dzhakishev and a number of his associates were sacked from their positions and officially charged with financial mismanagement and corruption in May. He has been kept in a cell at a KNB detention center since then. His relatives and other supporters say the case against him is politically motivated. • Two major opposition parties merge in Kazakhstan Almaty. October 26. Interfax-Kazakhstan – The delegates to a congress of the two major Kazakh opposition parties, the National Social-Democratic Party and Azat (Freedom), have decided to merge into one party called National Social Democratic Party Azat.National Social Democratic Party leader Zharmakhan Tuyakbai and Azat leader Bulat Abilov announced the unification plans several days ago. The Saturday congress in Almaty, which was attended by more than 440 delegates, unanimously supported the decision. The delegates also decided that Tuyakbai and Abilov will be co-chairmen of the unified party. Amirzhan Kosanov, a first deputy chairman of the National Social Democratic Party, was elected the general secretary of the unified party. The new party's political council will be comprised of 53 people. After the consolidation, the new party will number about 400,000 members. Tuyakbai earlier served as a prosecutor general and later as a parliamentary speaker. Abilov is a successful businessman and a former parliamentarian representing the ruling party Otan, which is now called Nur Otan. Geo Strategic Front • Turkey-Kazakhstan relations hit peak Following an almost decade-and-a-half stall in Turkey's active engagement in brethren Turkic countries in Central Asia during the late Turkish president Turgut Özal's tenure, Turkey has started to build strong and lasting political and economic relations with Central Asian countries. It was during Turkmenistan's President Gurbanguly Berdimuhamedov's visit to Turkey when Turkey took the first step to establish good relations with Central Asia's pro-Russian countries. President Abdullah Gül and Kazakh President Nursultan Nazarbayev signed a strategic partnership agreement on Thursday to boost political and economic relations between Turkey and Kazakhstan, a long-expected and belated deal according to some observers. Turkey was the first country to recognize Kazakhstan when it got its independence from the former Soviet Union in late 1991. President Özal called Kazakh President Nazarbayev an hour after its declaration of independence and congratulated him. Turkey established diplomatic relations between the two countries in four months' time. Turkish contractors and investors have made substantial progress in the past two decades and have contributed considerably to the economic development of Kazakhstan. Turkey's
96
BPM- Weekly Report # 91 Zone 1-Asia
contribution to education in Kazakhstan is also noteworthy; there are two Turkish universities and 28 Turkish schools in the country. During his joint press conference with Turkish President Gül after the signing of the strategic agreement, Nazarbayev said the strategic aspect of the partnership between Ankara and Astana has always been there. Noting that this is an important effort, a famous expert on Kazakhstan, Abdulvahab Kara, said in an interview with Sunday's Zaman that this is the first time Turkey has signed a strategic partnership agreement with any Turkic country. “I view this as a huge step. We may collect the fruits of such agreements in the future. It could have productive implications with regard to economic and cultural relations,” said Kara. In contrast, Hüseyin Bağcı, a professor of international relations at Middle East Technical University (ODTÜ), said it is not healthy to use the term strategic partnership every time. “The term has been widely used, and it has been watered down. It is impossible to have strategic relations with every country; we selectively use this term in international relations,” Bağcı said. “However,” he continued, “it is positive what has been done with Kazakhstan.” Mentioning Turkey's swift recognition of Kazakhstan's independence, Bağcı said the two countries have experienced ups and downs in bilateral relations. “Kazakhstan is a rich country with abundant natural resources and is a significant trade partner of Turkey,” Bağcı noted. • Kazakhstan to promote OSCE common vision of security issues Almaty. October 26. Interfax-Kazakhstan - Kazakhstan plans to promote a common security vision in its chairmanship of the Organization for Security and Cooperation in Europe (OSCE) in 2010, Kazakh Deputy Defense Minister Lt. Gen. Bulat Sembinov told a Monday press briefing. The briefing was dedicated to a visit of foreign military observers to Kazakh military sites. "It is no secret that OSCE member countries have certain disagreements about security issues, so our chairmanship will target for the rapprochement of positions on many items of the organization's agenda. Such positions have been invariable for many years," he said. "The profound political changes of recent years show that there is no European or Asian security. Instability in a particular country or a region endangers the security for the whole of Eurasia, and security is the key activity of the OSCE," he said. The Kazakh chairmanship "is bound to enhance the Asian agenda of the OSCE and to increase the organization's activity in the dialog between the West and the East," he said. "My country wishes to strengthen arms control, solve the problem of small firearms and the stock of conventional armaments. We have ensured over 50 inspections on the national territory within the framework of the Vienna document," he said. Forty-five military observers from 25 OSCE member states will visit an airbase and a paratrooper brigade stationed in the Almaty region in southeastern Kazakhstan on October 26-30 in the course of Kazakhstan's preparations for chairing the OSCE and in fulfillment of the Vienna document on confidence building measures and security adopted in 1999. Kazakh representatives took part in similar inspections in Austria, Norway, the Czech Republic and Germany this year. Economic /Energy Front • Kazakhstan will be a part of the Nabucco Project: Turkish president Turkish President Abdullah Gul said Friday there were strong reasons for Turkey and Kazakhstan to work together, Anadolu Agency reported. Speaking at the Turkish-Kazakh Business and Investment Forum in Istanbul, Gul said that he invited the businessmen of the two countries to cooperate more. We have signed a strategic cooperation agreement
97
BPM- Weekly Report # 91 Zone 1-Asia
with Kazakhstan yesterday (Thursday). Prior to this agreement, we acted together as strategic partners, Gul said. We are two brotherly countries. We are two separate parts of the same nation. The home of our forefathers is Kazakhstan. We have never forgotten the lands of our forefathers. I witnessed great hospitality during my two separate visits to Kazakhstan, Gul indicated. It is a reality that Kazakhstan has become the shining star of Asia. Kazakhstan has succeeded in establishing national unity, Gul said. When I look at the participants of the Turkish-Kazakh Business and Investment Forum, I see representatives of Turkish companies who have well succeeded abroad. Our businessmen would like to work with their Kazakh counterparts in Turkey, Kazakhstan and third countries, Gul stressed. Kazakhstan expressed an interest to be a part of the Nabucco Project while relevant countries signed an agreement. Kazakhstan will be a part of the Nabucco Project. Kazakh natural gas will be transferred to Europe, Gul said. It is our wish to cooperate more with our Kazakh brothers. There are strong reasons for Turkey and Kazakhstan to work together. We invite the businessmen of our respective countries to work more together and make use of the potential, Gul also said. • Samsun-Ceyhan Pipeline Project Designed to Divert Kazakhstani Oil Russia and Turkey, with Italy in tow, have seemingly struck a grand oil and gas bargain in the Black Sea. On October 19 in Milan, government ministers and corporate officials from the three countries signed agreements to move ahead with the Russian South Stream gas pipeline on the seabed and, concurrently, a Novorossiysk-Samsun-Ceyhan oil transport system centered on a pipeline across Anatolia. Italy’s state-controlled energy conglomerate ENI is involved in both projects, thanks to its close relations and those of Prime Minister Silvio Berlusconi with Moscow. The agreements just signed, however, amount to a bilateral quid-pro-quo between Russia and Turkey (Interfax, Anatolia News Agency, October 19, 20). The Turkish government authorized Russia’s Gazprom to conduct exploration work on the seabed in Turkey’s Black Sea exclusive economic zone, in preparation (or so it seems) for laying the South Stream pipeline’s seabed section. In return, Russia agreed to supply oil into the Samsun-Ceyhan pipeline, to run through Turkish territory from the Black Sea to the Mediterranean. This line, with a proposed capacity of the same magnitude as the Baku (Azerbaijan)-Ceyhan pipeline, would mainly carry Kazakhstani oil, to be delivered by Russia through the port of Novorossyisk into the Black Sea. This quid-pro-quo was first outlined publicly during Russian Prime Minister Vladimir Putin’s August 6 visit in Ankara (EDM, August 7, 8, 9). It does not entail any promise of South Stream gas supplies to Turkey. This would be unnecessary, since Russia already covers three quarters of Turkey’s gas consumption, in a saturated market. Turkey’s reward is the Samsun-Ceyhan oil transport project in return for cooperating with South Stream. Russia’s gain is two-fold. In a virtual sense it maintains an appearance of movement on the South Stream project, despite the lack of gas supplies and financing for that project even at the declarative level. Russia is trying to generate an artificial bandwagon effect with South Stream in order to cast doubt on the viability of the European Union-backed Nabucco project. In a material sense, however, Russia stands to gain major advantages in the contest for the transportation of Caspian oil, if the Samsun-Ceyhan pipeline is built and operates as intended. This line would enable Russia to consolidate its control over the transportation of Kazakhstani oil to international markets via Russian territory, adding to Moscow’s already strong leverage on Kazakhstan and on Western oil companies operating there. Nearly 80 percent of oil exports from
98
BPM- Weekly Report # 91 Zone 1-Asia
Kazakhstan flow through Russian pipelines and ports at present (a share basically unchanged for the last decade). Western companies extract most of that oil and have also built the largest export pipeline: the Caspian Pipeline Consortium (CPC) line from Tengiz via Russia to Novorossiysk. Oil production in Kazakhstan is set to increase dramatically in the decade ahead, as currently operating fields approach the peak phase and the worldclass Kashagan offshore field comes on stream. That production requires outlets and Moscow insists that these are, again, Russian outlets, primarily Novorossiysk on the Black Sea. • Kazakhstan prepares for return of good old commercial banking Now that Kazakhstan’s economy is starting to revive, the country’s major banks are preparing for a resumption of growth in the sector - but a period of more cautious and conservative growth. The rising oil price has given rise to a new mood of optimism in Kazakhstan. In the latest forecast from the government (which admittedly tends to err on the side of optimism), Prime Minister Karim Massimov said on October 19 that the economy would return to 2.4% growth in the 2010 financial year, based on oil prices of just $50 per barrel (today, prices are bouncing around $70). Bankers, too, say they are starting to see the light at the end of the tunnel. Serik Akhanov, chairman of the Association of Financiers of Kazakhstan (AFK), cites recent increases in assets, liabilities and retail deposits. On a less positive note, non-performing loans (NPLs) have continued to increase, rising from 33.8% to 34.7% of all loans during September, although the high percentage of bad loans at BTA Bank and Alliance Bank skew the data. Timur Ishmuratov, managing director of Bank CenterCredit’s international department, agrees that we have started to see some kind of recovery, including an improvement in NPL levels at some of the banks and an increase in the recovery of previously written-off loans. However, he warns that there are still several factors that could cause a setback. “The best-case scenario is that the sector will hit bottom by the end of this year and there will be some improvements in 2010,” he says. “It’s possible that the current situation could continue through 2010, but we believe that the optimistic scenario is more realistic.” Most of the major banks introduced stricter lending criteria as the crisis hit, if they had not already done so. Now, some face the problem of having funds to lend, but no suitable loan candidates. “To maintain the quality of our loan portfolio at a reasonable level, the bank has toughened requirements for borrowers and implementation of risk management. In addition, we have increased our liquid assets as a cushion against potential volatilities,” says Zareena Taimagambetova, executive director of Eurasian Bank. “There are also very few good corporate projects in Kazakhstan, and faced with this lack, most banks have a high level of liquidity.” ATF Bank plans to increase its lending activity, but the bank’s CEO, Alexander Picker, has a different take on the situation. “The main obstacle to increasing lending is not that there are no suitable companies, but that there needs to be a general change in the relationship between banks and borrowers,” he says. “Previously, banks acted like pawn shops, in that when deciding to whether to make a loan they focused on the collateral rather than the company’s repayment capacity. The problem is that most of the collateral was real estate, and prices have gone down.” Although Kazakhstan didn’t have a banking bubble on the scale of those in western financial hubs, there were widespread breaches of classical commercial banking rules, in
99
BPM- Weekly Report # 91 Zone 1-Asia
particular those about not making loan decisions purely on collateral and not making speculative transactions. The AFN has already introduced new regulations for commercial banks, intended to prevent a repeat of the current crisis. Meanwhile, a highlevel concept for post-crisis development of the banking sector is being drawn up. This is expected to be signed by President Nursultan Nazarbayev by the end of 2009. With BTA and Alliance out of the picture, other major banks are looking to increase their market share in the new competitive landscape. Halyk Bank’s chairwoman, Umut Shayakhmetova, tells bne in a recent interview that the bank views 2009 as a year of opportunity. ATF and BCC, both of which have strong foreign investors, have benefited from recent developments, while Eurasian leaped from 7th to 10th place among Kazakh banks in terms of assets in the first half of this year. But while the larger banks may be looking to increase their share of the market, they also expect to play a more modest role in the development of the economy as a whole. No one expects a return to the explosive, debt-fueled growth of the pre-crisis years. “The crisis has been a cold shower for banks. I am sure they have learned many lessons,” Akhanov tells bne. “Before the crisis, banks had asset growth of up to 70% a year, while GDP was growing by just 10% on average. Now they have learned first that the correlation of GDP growth to banking sector growth is important. Second, risk assessment needs to be improved. And third, economies are cyclical - bankers had forgotten that growth cannot be constant.” ATF’s Picker agrees: “Banks used to be the driver for the economy. If they can’t return to that function in future, I don’t know that it would be a bad thing.” “Banks should have an important role in any economy, providing loans and support for the real economy, but they should have a more humble role,” he says. “It’s time for a return to good old commercial banking.” • Kazakhstan may supply gas for Nabucco – energy ministry Astana. October 28. Interfax-Kazakhstan – Kazakhstan may supply gas for Nabucco project if there are available gas volumes, said Meiram Kanapyanov, the director of the multilateral cooperation department of the Kazakh Ministry of Energy and Mineral Resources.“As far as Kazakh gas deliveries for the Nabucco project is concerned, everything will depend on gas availability as a lot of large gas projects, that are being implemented now, require considerable gas volumes,” he told an international press conference entitled “Kazakhstan’s Chairmanship in OSCE: Challenges and Possibilities” in Astana on Wednesday. “We also have to build a gas pipeline through the Caspian Sea, the legal status of which has not been defined yet. So, Kazakhstan won’t be able to deliver gas for the Nabucco system unless these projects (TransCaspian gas pipeline – Interfax-Kazakhstan) have been completed,” he said. In the future, he added, when other large fields come into operation and there are available gas resources Kazakhstan may be considered as potential gas supplier for Nabucco. Turkey, Bulgaria, Rumania, Hungary and Austria made a decision to build a gas pipeline, known as Nabucco project, to transport gas from the Caspian region round Russia directly to Europe. It is expected that the construction of the pipeline will be finished by 2014. The project for the construction of this 3300 km gas pipeline is valued at 7.9 billion euro. Social Front • Kazakh Rights Activist Sent To Remote Labor Camp Leading Kazakh human rights activist Yevgeny Zhovtis has been transferred from Almaty to a labor camp in northeastern Kazakhstan, RFE/RL's Kazakh Service reports.
100
BPM- Weekly Report # 91 Zone 1-Asia
Zhovtis, director of the nongovermental organization Bureau of Human Rights, was sentenced to four years in prison last month for accidentally striking and killing a man with his car. On October 19, an Almaty Oblast appeals court in the city of Taldy-Qorghan upheld his conviction and sentence, which has been condemned by international human rights groups as too long for his alleged crime. The labor camp OV-156/13, where Zhovtis was transferred, is located about 1,000 miles from his native Almaty. His supporters say the fact that Zhovtis was transferred so far away from his family and colleagues to serve his term confirms their belief that the case against him is politically motivated. • U.S. Says Concerned With Kazakh Activist Verdict ALMATY (Reuters) -- The United States has criticized a tough sentence for a Kazakh human rights activist handed down months ahead of Kazakhstan's chairmanship of a European human rights body. A Kazakh court this week upheld a four-year prison sentence for human rights campaigner and government critic Yevgeny Zhovtis who was jailed for manslaughter after a road traffic accident in a trial rights groups say was flawed. Kazakhstan's human rights record has come under scrutiny as the former Soviet republic prepares to chair the Organization for Security and Cooperation in Europe (OSCE) next year. Zhovtis hit a pedestrian on a highway in July causing his death. Zhovtis said he had not been able to prevent the accident and called the verdict politically motivated. Rights groups say his brief trial was unfair and did not allow him to mount a proper defense. Zhovtis was not allowed to attend the appeal. On October 22, the U.S. Embassy in Kazakhstan noted "with concern" the appeals trial ruling. "After the original trial in September, there were credible allegations of procedural flaws in that trial, and the appeal hearing failed to address those concerns," a statement said. "We urge the government of Kazakhstan to pursue the upcoming procedural review of the case fully in accord with Kazakhstani law and its commitment to international judicial standards." Western rights groups such as Human Rights Watch have said Zhovtis's case undermined Kazakhstan's credibility as the future leader of the OSCE, Europe's main security and human rights body. The government has denied any political motivation behind the case and said the trial had taken place in line with the law. • Kazakhstan’s journalism goes through crisis, survey Almaty. October 29. Interfax-Kazakhstan - The international center of journalism, MediaNet, after surveying 350 reporters, editors-in-chiefs and media owners concluded that the development of Kazakhstan’s journalism has frozen. "Over 50% journalists believe that the Kazakh media is stagnating,” MediaNet director Vyacheslav Abramov said at a press conference on Thursday at the Interfax-Kazakhstan press center in Almaty on Thursday. "Nearly 20% respondents are witnessing that the media is regressing. Only 10% observe some progress,” he said. The majority of surveyed responders named a global economic crisis that holds back new media projects as the key reason behind stagnation of the media market. He also said that "many reporters and editors of periodical publications noted an increasing pressure on the media by the state agencies in an attempt to take control over the media outlets.” According to MediaNet director, “over 70% of the surveyed media representatives believe that Kazakh media outlets are not free, 20% said that media outlets are relatively free.” Despite the above-mentioned hurdles the Kazakh mass media still has its influence on the public opinion, but practically leaves the state officials unaffected. "In other words, people that make
101
BPM- Weekly Report # 91 Zone 1-Asia
decisions don’t pay attention to media reports. They respond to a harsh criticism only, and do it in a very aggressive manner,” Abramov said. The survey showed that getting access to information is a major concern for journalists. “It’s hard to get any information or reach someone for comments. It’s fair for both state officials and businessmen alike, as they are all interested in presenting themselves in a favorable light,” he said. The survey demonstrated that Russian and Kazakhs journalists have recently warmed to each other, he said. Abramov said that the initial goal of the survey was to identify the real owners of the media outlets in Kazakhstan. “This information is still officially a mystery, but journalists all know -- who is behind what,” he said, but added that such information is still officially unavailable. • Kazakh language development must not be discriminating against residents, Nazarbayev Astana. October 27. Interfax-Kazakhstan – Kazakh President Nursultan Nazarbayev believes that the development of the state Kazakh language must be carried without infringing upon residents’ rights."The Assembly of Peoples of Kazakhstan must take the lead in promoting the Kazakh language learning, but on new terms. It means a more extensive coverage of the population with the language learning process by expanding a network of language centers in every city, regional centers and education establishments,” the resident said. “We need to be consistent in realizing a series of steps without discriminating or disparaging anyone," the president said at the 15th session of the Assembly of Peoples of Kazakhstan (APK) on Monday in Astana. “Innovative learning methods must be more vigorously introduced, the share of TV broadcasting in Kazakh must be increased but with subtitles, more Kazakh translation of business guides, fiction and other literature must be published and Kazakh language internet sites must be increased," the head of state said. The president stressed that the government allocates sufficient funds, but they must be properly managed. The Assembly of Peoples of Kazakhstan is a consulting and advisory agency at the head of nation that embraces representatives of almost all 120 ethnic groups that reside in Kazakhstan. President Nazarbayev came up with the Assembly creation in 1992. He chairs the Assembly. Resolutions supported by APK has no legal force, but in many cases they create precedents for adopting important regulations and documents having the force of law. Kyrgyzstan Political Front • Kyrgyz Police Seeking Second Suspect In Journalist's Killing Kyrgyzstan's Interior Ministry says that a second suspect is being sought in the 2007 murder of independent journalist Alisher Saipov, RFE/RL's Kyrgyz Service reports. Interior Ministry spokesman Oljobay Kazybaev told RFE/RL that Abdufarit Rasulov was detained shortly after the killing, and the search for another suspect -- identified only as Sharakhmatullaev -- was recently launched as the investigation continues. Last week, the New-York based Committee to Protect Journalists (CPJ) called on Kyrgyz authorities to make public the findings of their investigation into Saipov's murder. Saipov, 26, was the editor of the local Uzbek-language newspaper "Siyosat" (Politics) and had previously reported for RFE/RL and Voice of America. He was shot dead by an unknown assailant on October 24, 2007, as he left his office in the southern Kyrgyz city of Osh. Saipov's colleagues suspect he may have been killed by agents of neighboring Uzbekistan since he
102
BPM- Weekly Report # 91 Zone 1-Asia
often wrote critical articles in Uzbek about the situation in that country. Kazybaev told RFE/RL last week that the "opinions" about the alleged involvement of Kyrgyz or Uzbek security services into the murder are wrong because the main suspect in Saipov's killing, Rasulov, has been arrested and his case will begin soon. But Rasulov's lawyer, Zina Alymbekova, told RFE/RL that her client never met Saipov and has nothing to do with the crime. She said he only confessed to being involved in the killing under duress and torture during the investigation. • President’s institute formed in Kyrgyzstan The President of Kyrgyzstan has signed a decree on establishment of government bodies, forming the president’s institute. The following government bodies have been established to “create condition for formation of national and state ideology, rational balance between innovations and traditions, state government bodies and interests of groups, conduction of dialogue and securing of partnership between the state authority and civil society:” -Presidential apparatus, - Presidential secretariat, -Central Development, Investments and Innovations Agency. The decree has formed the following coordinating and consultative bodies, included in the president’s institute: -Presidential council -Development council. The document appoints officials of the institute - the State Defense, Security and Law Order Advisor to the president, the Foreign Minister of Kyrgyz Republic. The Presidential Secretariat, Apparatus, the Central Development, Investments and Innovations Agency are established on the basis of presidential administration. The State Defense, Security and Law Order Advisor to the President and his office are formed on the basis of the Kyrgyz Security Council. Strategic Analysis and Estimation Institute under the Kyrgyz president is functionally subordinated to the presidential secretariat. The document details posts, structures and maximum number of state officials of the mentioned bodies. • New Foreign Minister appointed Kadyrbek Sarbaev was again appointed a Kyrgyz Minister of Foreign Affairs as the President Bakiev signed a relevant decree in Bishkek on Monday. With another decree Bakiev named Oxana Malevanaya and Kanybek Joroev as heads of the Presidential Secretariat and Staff respectively • Opposition criticizes presidential reforms Kyrgyz opposition has spread an official statement, harshly criticizing the just-started governmental reforms pushed by the president Bakiev. “Despite the large-scale propaganda the reform is just a cover for consolidation of power in the president’s hands. The cabinet has lost its key ministries, which significantly weakens the government and tightens the president's grip on power,” the statement released by the Joint People’s Movement (JPM). It has to be noted that opposition in Kyrgyzstan repeatedly criticized the oversized cabinet in such a ‘small Kyrgyzstan’ and claimed that the president should not deal with politics. In its latest statement JPM complains that now such issues as culture, tourism, and environment are out of the government’s responsibility. The ministry of economic development and trade was degraded to the ministry of economic
103
BPM- Weekly Report # 91 Zone 1-Asia
regulation, which is a substantial setback. On the contrary, the irrelevant State Property Fund became a ministry. The Prime Minister status became purely technical. The opposition believes that the long-awaited reform is nothing but a change of door signs in the officials’ offices. Geo Strategic Front • Hizb ut-Tahrir activists nabbed in Osh Three Hizb ut-Tahrir activists have been nabbed in Osh (Kyrgyzstan), press service of the Interior Ministry of Kyrgyzstan reported. Officers of the Osh Internal Department have arrested 62, 29 and 27-year-old citizens with CDs, video cassettes, booklets, notebooks, posters, newspapers and invitations to religious events of the extremist organization. The detained individuals have been previously brought to trial for fueling of religious conflict. Investigation is ongoing Economic /Energy Front • Kyrgyzstan To Pay Gas Debt To Uzbekistan BISHKEK -- Kyrgyzstan plans to pay its debt for Uzbek natural gas by December 1, RFE/RL's Kyrgyz Service reports. Deputy Prime Minister Akylbek Japarov told RFE/RL that the gas debt will be discussed by the Kyrgyz parliament on October 30. Kyrgyzstan's unpaid debt for Uzbek gas amounts to some $14 million. Uzbekistan suspended the flow of gas to the southern part of Kyrgyzstan on September 22, including to the regional capitals of Osh, Jalalabad, and Batken. In October, the Kyrgyz government paid some $5 million of the debt. Kyrgyzstan currently buys Uzbek gas for $240 per 1,000 cubic meters, up from $145/1,000 cubic meters that Kyrgyzstan paid the previous year. Uzbekistan provides energy resources to Kyrgyzstan, while the Uzbeks are dependent on Kyrgyz water supplies. Uzbekistan has on several occasions in previous years stopped exporting energy to Kyrgyzstan, souring relations. Ties between the two have worsened over Kyrgyz plans to build hydroelectric power plants that might reduce the amount of water Uzbekistan would receive from Kyrgyzstan. Russia's state-controlled Gazprom owns 75 percent of KyrgyzGaz. • State-owned privatization to get through stock exchange in Kyrgyzstan Privatization of state-owned stakes will get through the Kyrgyzstan stock exchange for the first time in years, one of the Bishkek finance companies said. The Kyrgyz Stock Exchange officially informed about the auction sale of three companies’ state-owned stakes to run on October 30, 2009. The Bulgary Company has put up 703 or 0.18 percent of its shares for sale, with a starting price of 46.23 soms per share. Thereto, the whole holding will be sold no less than for 32,500 thousand soms. The Orgtechstroy Company plans to trde 2.56 percent of the total amount of shares. At least 21.30 thousand securities will be sold for no less than 999.4 thousand soms, i.e. 47.52 soms each. The BASO Company will be the third enterprise to privatize its state-owned stake through the stock exchange. The number of listed for sale shares comes to 163 that is 0.37 percent of the total amount. The starting price of one share is 369.84 soms, while the minimum price for the whole holding amounts to 60,284 thousand soms. • Kazakhstan to step out of Central Asian energy system Kazakhstan intends to step out of the Central Asian energy system, the Kazakh media reported. According to the Kazakhstan Electricity Grid Operating Company (KEGOC), Kazakh energy system is able to provide the internal suppliers and support Kyrgyzstan.
104
BPM- Weekly Report # 91 Zone 1-Asia
“Energy is constantly taken out of the Common CA energy system, namely by Tajikistan. Imbalance of energy production and consumption may overburden the transit line of the North-South. This, in turn, may lead to electricity rationing and possible cascade failure of the system, affecting both Kazakhstan and Russia,” KEGOC said. Social Front • At least 88% of Kyrgyz internal migrants move in search for jobs About 88% internal migrants of Kyrgyzstan move in search for jobs, the American University in Central Asia’s survey said. The survey shows that up to 95 percent of internal migrants in Kyrgyzstan work without contacts, over 40 percent suffer from negative attitude of medics and about 20 percent have to refuse any medical aid due to negative attitude of doctors. Therewith 40 percent of the survey participants admit that they have given bribes for receiving medical assistance and about 55 percent struggle to put children to schools, due to lack of official registration. • Child social security system is disintegrated in Kyrgyzstan Analytical study Evaluation of Child Protection System, held by an international expert Irina Malanchuk, with assistance of UNICEF in Kyrgyzstan says that child social security system in our country is disintegrated. The system is controlled by several central and local governmental structures and it literally tears the system apart. “Besides, the new structures with unclear functions have been recently established in the sphere,” the report said. Two parallel systems function in the country - the Child Protection Department without potential at places (in regions, districts and rural areas) and all previously existed central structures (ministries) with services at the local level. Tajikistan Political Front • President promises to take efforts to ensure holding parliamentary elections at high level DUSHANBE, October 26, 2009, Asia-Plus -- President Emomali Rahmon who is also leader of ruling People’s Democratic Party (PDPT) has promised to take efforts to ensure holding of the upcoming parliamentary elections at the high level and within the framework of law. A plenum of the PDPT Central Committee, presided over by President Rahmon, was held in Dushanbe last Saturday (October 24). Usmon Soleh, the head of the PDPT propagation and information department, told Asia-Plus today that the meeting considered issues related to preparations for the upcoming parliamentary elections due in February 2010 and holding of the 10th congress of the party. On the upcoming parliamentary elections, Emomali Rahmon noted that as the head of state he would ensure holding of transparent and free elections. The elections should be held at the high level and within the framework of law, he stressed. Rahmon called on all political parties and movements participating in the elections to act within the framework of law, Soleh said. The plenum also adopted decision on convocation of the 10th congress of PDPT in Dushanbe on December 28 this year. The People's Democratic Party of Tajikistan was founded in 1993 and registered the same year. It is the biggest political party in Tajikistan, boasting some 120,000 registered members. The party chairman is President Emomali Rahmon. PDPT now controls more than 70 percent of the seats in parliament. Geo Strategic Front
105
BPM- Weekly Report # 91 Zone 1-Asia
• Tajik President's Moscow Talks Inconclusive MOSCOW -- Tajik President Emomali Rahmon's talks with Russian counterpart Dmitry Medvedev near Moscow have produced no significant results, RFE/RL's Tajik Service reports. Medvedev told journalists after the closed-door talks that Russia and Tajikistan would develop cooperation in defense and military exports to third countries to improve national and regional security. Medvedev and Rahmon confirmed their interest in hydropower projects in Tajikistan while taking other Central Asian countries' interests into account. Tajik analysts tell RFE/RL that Russia was not ready to discuss the main issues concerning Dushanbe: the rent for a Russian military base in Tajikistan and Russian participation in the Roghun Hydroelectric Plant project. Experts in Tajikistan say Russia's involvement in construction of Roghun would likely irritate neighboring Uzbekistan, which considers the new plant a threat to its regional monopoly on water. • President Rahmon holds a number of meetings in Moscow DUSHANBE, October 24, 2009, Asia-Plus -- President Emomali Rahmon’s state visit to Russia concluded and he returned to Dushanbe Friday evening, according to presidential press service. On October 21, President Rahmon and his Russian counterpart, President Dmitry Medvedev, had an informal meeting at the Moscow regional presidential residence Barvikha. On October 22, the presidents held talks in the Kremlin. A welcome ceremony of the Tajik president at the St. George Hall at the Grand Kremlin Palace envisaged under the format of Rahmon’s state visit in Moscow preceded the negotiations of the presidents. After the ceremony the presidents had an eye-to-eye meeting and then the negotiations continued involving the delegations of the countries. Speaking at a news conference after the talks in the Kremlin, Dmitry Medvedev called bilateral ties "friendly" and "those of allies." "We have analyzed the results of the development of our relations recently, and discussed economic projects, military cooperation, and humanitarian projects," he said. Medvedev also pledged measures to facilitate migration rules for hundreds of thousands of Tajiks working in Russia. The presidents issued a joint statement after the talks pledging to step up military cooperation, highlighting the Russian base's role for security in the region, and ordering agencies in the two countries to accelerate natural gas prospecting in Tajikistan. Presidential press service reported that on October 23, President Rahmon met with staff teaching and students at M.V Lomonosov Moscow State University. The same day, Emomali Rahmon met with 300 fellow-countrymen living and working in the Russian Federation. The meeting participants exchanged views on ways of solving problem facing Tajik labor migrants in the Russian Federation. It was already the fifth meeting of President Rahmon with Tajiks staying in Russia, the press service said. During his previous visits to Russia, Tajik leader had held similar meetings in Kazan, Moscow, Chelyabinsk and Yekaterinburg. • Tajikistan will not get money from Russia for military base until 2014 DUSHANBE, October 26, 2009, Asia-Plus -- Under an agreement signed between Tajikistan and Russia in October 2004, Russian military base 201 in Tajikistan will work here on an unpaid basis until 2014, Tajik Foreign Minister Hamrokhon Zarifi told reporters in Dushanbe today. “During an official visit of Russian President Dmitry Medvedev to Tajikistan in August 2008, the Russian side offered us to discuss a number of organizational issues regarding further presence of its military base on our territory,” said Zarifi, “In October 2008 at our request, Russia presented its proposals on this issue in a written form and we sent our reply to Moscow in January this year.”According to
106
BPM- Weekly Report # 91 Zone 1-Asia
him, the presidents of the two countries have charged relevant ministries of their countries to study the issue. “A working group comprising representatives from Tajik MFA and the defense ministries of the two countries has been set up for studying the issue and presenting the necessary option. This group consists of four subgroups,” said the minister, “During recent state visit of President Rahmon to Moscow, Russian President Dmitry Medvedev orders Russian foreign minister to join this process.” He noted that during the negotiations the sides had taken into consideration national interests of each other. “The working group has considered the issue of payment for Russia’s military base 201 along with the issue on unpaid presence of it and I think the negotiations may last until 2014,” Zarifi said. He added that additions to the agreement proposed by the Russian side were aimed at improvement of conditions of Russian military personnel staying in Tajikistan. We will recall that Russian Defense Minister Anatoly Serdyukov told reporters in Moscow on October 22 that the issue of paying rent for a Russian military base in Tajikistan was still being discussed. "We have considered two issues - either to continue using the base in the current form or on a paying basis," Anatoly Serdyukov told reporters after talks between the countries' presidents, adding that it was too early to discuss specific figures, according to RIA Novosti. • U.S. CENTCOM commander visits Tajikistan DUSHANBE, October 27, 2009, Asia-Plus -- Yesterday afternoon, General David H. Petraeus, Commander, U.S. Central Command (CENTCOM), met with President Emomali Rahmon and a number of Tajik military officials during his October 26 visit to Tajikistan. According to presidential press service, in the course of the talks, President Rahmon noted that Tajikistan was interested in establishment of lasting peace in Afghanistan and ready to expand its cooperation with the United States in that and other directions. For his part, General Petraeus highly appraised Tajikistan’s role in providing stability in Central Asia and appreciated Tajikistan’s support for international antiterrorist forces in Afghanistan and reconstruction of Afghanistan’s economy. U.S. general also expressed satisfaction with the level of cooperation between the U.S. specialists and Tajikistan’s border troops, customs officers and other services, the press service said. Speaking to reporters following the meeting, General Petraeus stated that along with issues of bilateral cooperation between Tajikistan and the United States, he discussed joint cooperation in promoting stability in Afghanistan, including combating drug trafficking, preventing terrorism, ensuring border security with Tajikistan and supporting humanitarian and infrastructure projects in Afghanistan, according to the U.S. Embassy in Dushanbe. General Petraeus also discussed transporting U.S. commercial goods via Tajikistan to support rehabilitation efforts in Afghanistan. General David H. Petraeus assumed command of the United States Central Command in October 2008, after serving for over 19 months as the Commanding General, Multi-National Force-Iraq. Prior to his tour as MNF-I Commander, he commanded the U.S. Army Combined Arms Center and Fort Leavenworth. Before that assignment, he was the first commander of the MultiNational Security Transition Command-Iraq, which he led from June 2004 to September 2005, and the NATO Training Mission-Iraq, which he commanded from October 2004 to September 2005. Economic /Energy Front • Russia to build three small power plants in Tajikistan
107
BPM- Weekly Report # 91 Zone 1-Asia
DUSHANBE, October 26, 2009, Asia-Plus – Russia plans to build three small hydropower plants in Tajikistan and hopes to obtain a controlling stake in the project, the Russian energy minister said Sunday (October 25), RIA Novosti reported. Sergey Shmatko told journalists: "We count on a controlling stake in these plants and hope for the Tajik side's understanding," adding that Russia will account for most part of the investment into the project. We will recall that Tajik President Emomali Rahmon and his Russian counterpart, President Dmitry Medvedev, met on October 22 during President Rahmon's visit to Moscow and pledged, among other things, to settle differences on energy projects. Shmatko earlier said the two countries have overcome differences on a $30 million debt for electricity supplied to Tajikistan by the Sangtuda-1 hydropower plant, and are set to sign documents on the repayment schedule. • Iranian energy official gets acquainted with implementation of Iran-supported projects in Tajikistan DUSHANBE, October 26, 2009, Asia-Plus -- Iran’s Deputy Minister of Energy, Hamid Chitchian, heading an Iranian delegation, paid a two-day visit to Tajikistan on October 22-23. According to the Iranian Embassy in Dushanbe, the purpose of the visit was for to hold discussions with a number of Tajik officials and get acquainted with the process of implementation of the Iran-sponsored projects in Tajikistan. On Friday October 23, Chitchian met with Sharif Rahimzoda, Chairman of the National bank of Tajikistan (NBT), and Safarali Najmididnov, Minister of Finance of Tajikistan. The process of implementation of the project for construction of the Sangtuda-2 hydroelectric power plant (HPP) in Tajikistan was a major topic of talks of Najmiddinov and Chitchian. The Sangtuda-2 HPP has been constructed by the Iranian company, Sangab. The project is expected to solve many problems of Tajikistan in generating electricity and providing power in cold seasons. According to Iran’s news agency IRNA, Mr. Najmiddinov said that Tajikistan attaches significance to the project, which is planned to be inaugurated in two years' time. During his stay in Tajikistan, Iranian official also visited the site for construction of the Sangtuda-2 HPP and the Istiqlol Tunnel that has also been built with help of Iranian specialists, the source at the Iranian Embassy said. • Tajikistan, Poland to sign economic cooperation agreement DUSHANBE, October 30, 2009, Asia-Plus -- Tajik-Polish political and economic consultations will begin in Tajikistan next week, Slavomir Stsalkowski, the Counselor of Polish Embassy in Tajikistan, told reporters in Dushanbe yesterday. According to him, Polish deputy foreign minister heading a dignified delegation, which includes representatives of ten large companies of Poland, will arrive in Tajikistan. “A meeting of representatives from Polish and Tajik business communities will be held in Dushanbe on November 3 on sidelines of the consultations,” said Polish diplomat, “On November 4, Polish entrepreneurs will visit some regions of Tajikistan to get acquainted with work of their Tajik colleagues, study their needs and define how they could establish cooperation.” Stsalkowski noted that a government-to-government agreement on economic cooperation between the two countries would be singed in Dushanbe. “It is the first step and a clear signal for Polish entrepreneurs that the governments support economic and trade relations between our countries,” he said.
108
BPM- Weekly Report # 91 Zone 1-Asia
Polish diplomat added that a Polish-Tajik intergovernmental commission would be established under the mentioned agreement. “Working groups will be set up within the commission,” said he, “I know that working groups for agriculture and mechanical engineering affairs will be set up. These groups will consider not only general issues, they will also consider issues related to attracting concrete firms and entrepreneurs.”On the trade and economic relations between Poland and Tajikistan, Stsalkowski noted that last year, a trade between the two countries valued at only 26.3 million U.S. dollars, which was 12.7 percent fewer than in 2007. Over the first nine months of this year, the Polish-Tajik trade has decreased even more. Only four enterprises with participation of Polish capital now operate in Tajikistan; one of them, is Polish construction company, Budmex, which opened its representative office here this year, Polish diplomat said.“One of the main reasons for this situation is shortage of information about opportunities and needs of the two countries” Stsalkowski said, noting that the Polish Embassy is working on attracting Polish entrepreneurs for working in Tajikistan. “Tajikistan Market Guide” has been published in the Polish language for our businesspeople wanting to work in Tajikistan,” he added. As it had been reported earlier, Polish Deputy Foreign Minister Andrzej Kremer will pay a visit to Tajikistan in early November this year. During his stay in Tajikistan, the Polish deputy foreign minister will hold talks with senior representatives of the Tajik MFA and attend the Tajik-Polish business forum. Social Front • EU-UNDP Project helps to reduce drug addiction in prisons DUSHANBE, October 30, 2009, Asia-Plus – Today, the EU-UNDP Central Asia Drug Action Programme (CADAP) handed over computers, office and household equipment, and sport inventory to the “SPIN Plus” organization for further use at the “Half-Way House” for drug addicts at the Prison Central Hospital located in Dushanbe, according to the Delegation of the European Commission in Tajikistan. The total cost of the equipment is about € 16 000. Under its "Prisons" project, CADAP helps introduce the rehabilitation and counseling program "Atlantis" in the five Central Asian countries by featuring a 12-step therapy program on the treatment and rehabilitation of drug-addicts in prisons. The project also provides continuing support for prisoners by the creation of “Half-Way Houses” after their release from prison. “HalfWay Houses” provide assistance (temporary housing, renewals of documents, vocational training etc) for ex-prisoners to adjust to life after their release from prison. In all Central Asian countries non-governmental organizations were contracted to provide renovation/reconstruction works and install equipment in prisons for providing social support. In Tajikistan, this job was performed by the NGO “SPIN Plus”. The overall objective of the EU-UNDP CADAP Programme is the gradual adoption of EU and international good practices on drug policy covering both supply and demand reduction aspects by beneficiary authorities. CADAP is funded by the European Union and implemented by UNDP. • WEF’s Global Gender Gap Report 2009 ranks Tajikistan 87th out of 134 economies DUSHANBE, October 28, 2009, Asia-Plus -- The World Economic Forum’s (WEF) Global Gender Gap Report 2009 ranks Tajikistan 87th out of 134 economies. According to the report, Tajikistan gains two places in the rankings improving its scores on the labor force participation subindex. There is also a smaller perceived wage gap for similar
109
BPM- Weekly Report # 91 Zone 1-Asia
work, according to the Executive Opinion Survey. The four Nordic countries that have consistently held the highest positions in previous editions of the Global Gender Gap Index continue to flourish, but the top rankings have been reallocated. Iceland (1) has claimed the top spot from Norway (3) which slipped to 3rd position behind Finland (2). Kyrgyzstan is ranked 41st, occupying the highest rank among Central Asia’s states, followed by Kazakhstan (47) Uzbekistan (58). Russia (51) loses 9 places in the rankings as compared to 2008 due to decreasing labor force participation of women and a perceived widening of the wage gap, although the overall ranking of the Russian Federation on the economic participation and opportunity category remains relatively strong at 24th position. However, in terms of political empowerment, the Russian Federation is far below average, holding the 99th position in the rankings for this subindex. The Global Gender Gap Report was first published in 2005. The 2009 report covers 134 major and emerging economies. The Report’s Gender Gap Index ranks economies according to their gender gaps and their scores can be interpreted as the percentage of the gap between women and men that has been closed. The three highest ranking countries have closed a little over 80% of their gender gaps, while the lowest ranking country has closed only a little over 45% of its gender gap. It assesses countries on how well they are dividing their resources and opportunities among their male and female populations, regardless of the overall levels of these resources and opportunities. By providing a comprehensible framework for assessing and comparing global gender gaps and by revealing those countries that are role models in dividing these resources equitably between women and men, the Report serves as a catalyst for greater awareness as well as greater exchange between policymakers. The Report examines four critical areas of inequality between men and women in 130 economies around the globe, over 92% of the world’s population: 1) economic participation and opportunity – outcomes on salaries, participation levels and access to high-skilled employment; 2) educational attainment – outcomes on access to basic and higher level education; 3) political empowerment – outcomes on representation in decision-making structures; and 4) health and survival – outcomes on life expectancy and sex ratio. • A number of events dedicated to Unite Nations Day held in Dushanbe today DUSHANBE, October 24, 2009, Asia-Plus -- A number of events dedicated to the United Nations Day are being held in Dushanbe today. According the UNDP CO in Tajikistan, a concert of classical music, conducted by the Italian director Gerardo Collela is being held at the Opera and Ballet Theatre in Dushanbe today afternoon. An exhibition of activities of the UN agencies in Tajikistan has also been organized at the theatre. The United Nations Charter entered into force on October 24, 1945, after being ratified by the five permanent members of the Security Council – the republic of China (later replaced by the People’s republic of China), France, the Soviet Union (later replaced by the Russian Federation), the United Kingdom, and the United States – and a majority of the other signatories. The UN Charter is the treaty that forms the United Nations. It was signed at the Herbst Theatre of the San Francisco War Memorial and Performing Arts Center (part of the Civic center) in San Francisco, the United States on June 26, 1945 by 50 of 51 original member countries (Poland, the other original member, which was not represented at the conference, signed it later). The UN News Center reports that in his message on the United Nations Day, the UN Secretary General Ban Ki-moon noted, “On
110
BPM- Weekly Report # 91 Zone 1-Asia
this United Nations Day and every day throughout the year, the United Nations is at work — for the planet, for jobs, for “we the peoples”.He noted that the UN delivers more humanitarian aid than anyone — and to the toughest places. The UN vaccinates 40 per cent of the world’s children. It feeds more than 100 million people and is helping more than 30 million refugees, most of them women and children fleeing war and persecution. “We are deploying more peacekeepers than ever — more than 115,000. In the last year alone, we provided electoral assistance to almost 50 countries. And the entire UN system has mobilized to face global economic turmoil and the social unrest it threatens” According to him, people look to the United Nations to defeat poverty and hunger, to keep the peace, to expand education and stand up for human rights in every corner of the globe. “They look to us to stop the spread of deadly weapons and disease, and to protect people and families hit by disasters. In December, they will look to us to seal a comprehensive, equitable and ambitious deal on climate change that will protect us all and pave the way toward a greener, more sustainable economy.” The UN Secretary General stressed that this is a unique moment in world affairs. Multiple crises — food, fuel, financial, flu — are hitting at once. Climate change looms larger every day. Each illustrates a 21st-century truth: we share one planet, one home. As people, as nations, as a species, we sink or swim together. The United Nations is doing its utmost to respond — to address the big issues, to look at the big picture, he noted. “We are forging a new multilateralism that can deliver real results for all people, especially those most in need. But I am also painfully aware of the distance to go and the gap between commitment and action,” said ban Ki-moon, “On this UN Day, let us resolve to redouble our efforts on behalf of the vulnerable, the powerless, the defenseless. Let us stand more united than ever – united in purpose and united in action to make the world a safer, better place.” Turkmenistan Political Front Geo Strategic Front • Diplomatic corps of Turkmenistan meets on Caspian Sea coast The enlarged meeting of the diplomatic corps of Turkmenistan tool place in the coastal town of Turkmenbashi on October 29. Heads of diplomatic missions and consulates of Turkmenistan abroad and representatives of the Humanitarian Association of World Turkmens participated in the meeting. The meeting discussed new approaches to structuring the country's foreign policy strategy, the priorities of which were put forward by President Gurbanguly Berdimuhamedov at the 64th session of the UN General Assembly, the Turkmenistan.ru correspondent reports from Ashgabat quoting the press service of the Foreign Ministry of Turkmenistan. The meeting stressed that the main objective of the foreign policy of Turkmenistan was providing assistance to the international community in maintaining and strengthening the global security system, preventing and neutralizing the threat of conflict, ensuring conditions for stable and sustainable development of nations and peoples, as well as broad and constructive international cooperation.
111
BPM- Weekly Report # 91 Zone 1-Asia
The meeting noted that "Turkmen President Gurbanguly Berdimuhamedov's statement is a programmatic document for the whole nation, and that Turkmen diplomats will devote all their knowledge, strength and experience to implement it." Economic /Energy Front • Turkmenistan completes section of gas line to China LOS ANGELES, Oct. 23 -- Turkmenistan has completed construction on its 188-km section of a 7,000-km natural gas pipeline that extends from Turkmenistan to China, according to official media. “Work on the Turkmen section of the TurkmenistanUzbekistan-Kazakhstan-China gas pipeline…is complete,” said the state-owned Neutral Turkmenistan newspaper. Construction of the Turkmen section of the line, at a cost of $400 million, was carried out by Russia’s Stroytransgaz. The whole line, which will transport gas from the Caspian Sea across Central Asia to China, is scheduled to start up by yearend. The pipeline starts from Turkmen gas fields near the Amu Darya river. It then enters Uzbekistan at Olot, then flows on to southern Kazakhstan, and on to Alashankou in China, where it will be connected to the West-East Gas Pipeline. In addition to gas from Turkmenistan and Uzbekistan, the $7.3 billion line is to be supplied from Kazakhstan’s Karachaganak, Tengiz and Kashagan gas fields. China National Petroleum Corp. has already signed a 30-year agreement for the supply of 30 billion cu m/year of gas through the new line. The new development comes at an opportune moment for Turkmenistan, whose gas historically has been piped to Russia. But the Central Asian country has been seeking to diversify its export markets away from Russia. The importance of its strategy was underlined earlier this year after a pipeline explosion sparked a disagreement with Russia’s OAO Gazprom that saw Turkmen gas exports almost completely cut off. Since then, the two sides have been unable to agree on a new export arrangement. The Turkmen government, noting the significance of the new pipeline, said, “Getting gas supplies to China will mark another important milestone in the successful implementation of Turkmenistan's strategy of diversifying energy export routes to world markets.” • Turkmenistan appoints representatives to IFAS and COMCEC President Gurbanguly Berdimuhamedov signed a decree according to which Vice Premier Myratgeldy Akmammedov has been appointed member of the Board of the International Fund for Saving the Aral Sea from Turkmenistan. Under another decree of the head of state, State Minister for Economy and Development of Turkmenistan Byashimmyrat Hodzhamammedov will take part in the 25th meeting of the Standing Committee on Economic and Commercial Cooperation (COMCEC) of the Organization of Islamic Conference to be held in Istanbul on 5-9 November 2009. The texts of the decrees were published today in the central mass media, the Turkmenistan.ru correspondent reports from Ashgabat. • Members of Turkmen-American Business Council outline plans for cooperation A meeting of the Turkmen-American Business Council (TABC) was held in Ashgabat. It was attended by a high-profile delegation of the U.S. business elite led by executive director of TABC Eric Stewart. The delegation consisted of Vice-Presidents of major U.S. companies such as Chevron, Boeing, Case New Holland, John Deere and others, the State News Agency of Turkmenistan (TDH) said. The meeting was attended by members
112
BPM- Weekly Report # 91 Zone 1-Asia
of the Turkmen government, heads of ministries and departments, heads of diplomatic missions accredited in Ashgabat, Turkmen diplomats and members of the Humanitarian Association of World Turkmens who participated in the XII Conference of HAWT. Opening the forum, executive director of the Turkmen-American Business Council Eric Stewart noted the enormous potential of Turkmenistan, its rapid growth and successful advancement along the path of reforms. He stressed that the U.S. businesses were prepared to put at the service of common interests their rich experience and high technologies that are now widely used in the world. According to the official report, there was held a constructive exchange of views on the prospects for building mutually beneficial cooperation in the oil and gas sector, energy sphere, development of the Turkmen part of the Caspian Sea, agriculture, communications and telecommunications, industry and transport infrastructure. Social Front • Turkmen Environmental Activist Given Five-Year Jail Term DASHOGUZ, Turkmenistan -- Prominent Turkmen environmental activist Andrei Zatoka has been sentenced to five years in prison for hooliganism, RFE/RL's Turkmen Service reports. Zatoka, 53, was found guilty in a court in Dashoguz of attacking a man in a market in the northern Turkmen city on October 20. His supporters say he was attacked by the man and attempted to detain him until police arrived. However, police detained Zatoka instead of the man. His supporters in Moscow held a protest in front of the Turkmen Embassy on October 27 and again on October 29, demanding his immediate release. They said they consider Zatoka's case to be politically motivated and connected to his professional activities. Zatoka, a biologist, has run an environmental-protection group shut down by the government in 2003. The co-founder of the group, Farid Tukhbatullin, now lives in exile in Europe and monitors human rights abuses in Turkmenistan. Zatoka was also detained in December 2006 and charged with possessing and dealing with in arms and dangerous substances, which Human Rights Watch said were trumped-up charges. In January 2007, he was finally released under pressure from the international community when a court granted him a conditional release upon his pledge not to leave the country for three years. His wife has been living in Russia since that time • Moscow Protest Over Turkmen Environmentalist's Arrest MOSCOW -- Activists demonstrated at the Turkmen Embassy in Moscow to protest the arrest in Turkmenistan of environmentalist Andrei Zatoka, RFE/RL's Turkmen Service reports. On October 27, some 20 protesters held signs saying "Freedom For Zatoka," "No to repression in Turkmenistan," and "Eight-day investigation reminds us of the Stalin era!" Demonstration organizers told RFE/RL that they will protest again on October 29 when hearings into Zatoka's case are scheduled to begin. Zatoka was arrested in the northern Turkmen city of Dashoguz on October 20. He has officially been charged with hooliganism and assault on an unnamed person. Zatoka and his supporters said they consider the case against the environmentalist to be politically motivated because of his activism. • Turkmen Police Arrest Green Activist, HRW Says ALMATY (Reuters) -- Police in the Central Asian state of Turkmenistan have arrested a prominent environmental activist in what appeared to be a politically motivated action,
113
BPM- Weekly Report # 91 Zone 1-Asia
Human Rights Watch (HRW) has said. Andrei Zatoka was arrested in the city of Dashoguz this week after being attacked by a stranger at a market, HRW said in a statement on October 23. He was himself accused of causing bodily harm to a passerby. "Zatoka's arrest appears to be a clear move by Turkmen authorities to stifle his activism," U.S.-based HRW said. "Authorities should let him go at once and drop any charges against him."Zatoka, a biologist, has run an environmental protection group shut down by the government in 2003. The co-founder of the group, Farid Tukhbatullin, now lives in exile in Europe and monitors human rights abuses in Turkmenistan. Rights groups say the government of the reclusive ex-Soviet republic tolerates no dissent and routinely locks up activists, a charge it denies. In 2006, a Turkmen court handed down a suspended sentence to Zatoka for possessing and dealing in arms and dangerous substances, which HRW said were trumped-up charges. He has also been barred from leaving the country. Human Rights Watch called on Western governments to put more pressure on Turkmenistan over human rights. "International actors have placed high hopes on Turkmenistan's government as committed to reform. But Zatoka's arrest and other steps backward in recent months unfortunately prove them wrong and call for redoubled efforts to press for urgent improvements." • Barack Obama congratulates President and people of Turkmenistan on Independence Day President of Turkmenistan Gurbanguly Berdimuhamedov received a message from U.S. President Barack Obama. As the Turkmenistan.ru correspondent reports from Ashgabat, the message was published today in the central print media of the country. "On behalf of the people of the United States of America I am honored to send best greetings and wishes to you and the people of Turkmenistan on the occasion of Turkmenistan's independence. We greatly appreciate our good relationship with the people of Turkmenistan and looking forward to the further expansion of cooperation between our countries," the U.S. President's message said. • Ashgabat hosts XII Conference of World Turkmens The XII Conference of the Humanitarian Association of World Turkmens (HAWT) was held in Ashgabat on October 23. The conference brought together representatives of the Turkmen diasporas from 18 states and delegates from all parts of Turkmenistan. As the Turkmenistan.ru correspondent reports from Ashgabat, Turkmen President Gurbanguly Berdimuhamedov, who is also president of HAWT, spoke at the conference. "Turkmens, wherever they live, will never forget their native land, their traditions, and we believe that the Turkmens all over the world are a one big family, the president said. We have inherited from our ancestors such wonderful qualities as openness, friendliness, ability to get along with neighbors and help them in difficult moments of life. We are always ready to lend a hand of friendship to our compatriots living in different countries."The president expressed confidence that the work of the conference will contribute to the revitalization of the Humanitarian Association of World Turkmens and to the further unity of compatriots. A ceremony of awarding membership cards to the newly elected members of the association was held as part of the forum. In a festive atmosphere, valuable gifts were also awarded to the winners of the contest "The era of the great Renaissance and the Turkmens of the world", which is traditionally held by HAWT among creative art
114
BPM- Weekly Report # 91 Zone 1-Asia
workers. As the State News Agency of Turkmenistan (TDH) said, the World Turkmens will hold a lot of meetings with youth and public associations of Ashgabat in these days. • Turkmenistan celebrates 18th anniversary of independence On October 27, Turkmenistan marks the main national holiday - Independence Day. By tradition, the day began with a flower-laying ceremony at the Monument of Independence, which was attended by President of Turkmenistan Gurbanguly Berdimuhamedov. A military parade and festive parade of workers started at 10 a.m. on the central square of Ashgabat. It was broadcast live on the national television. The parade was opened by young drummers - students of the military schools under the Military Institute of the Ministry of Defense of Turkmenistan. Then, representatives of all branches of the Armed Forces of the country marched past the square. They were motorized infantry, paratroopers, pilots, air defense units of soldiers, sailors, marines, the border guards. Among the parade participants there were also cadets of the Military Institute, Military Academy of Turkmenistan, as well as officers of the Ministry of Interior and the Police Academy cadets. Modern military equipment adopted the National Army passed the stands in the square. Columns of latest tanks, infantry fighting vehicles, armored personnel carriers, self-propelled guns, anti-aircraft missile systems, rocket launchers, anti-tank batteries, air defense systems followed. The "air parade" was performed by groups of combat helicopters MI-8 and Mi-24, attack aircraft squadrons Su-25 and the supersonic MiG-29 fighters piloted by Turkmen pilots. The parade, which was inspected by the President of Turkmenistan, Supreme Commander-in-Chief of the Armed Forces, Army General Gurbanguly Berdimuhamedov, wrapped up with performances of a separate battalion of guards of honor and combined military orchestra. The parade of workers of Turkmenistan was preceded by the dance performance of graceful Akhal-Teke horses. Accompanied by artists two Akhal-Teke horses performed the ancient Turkmen dance Kushtdepdi. Uzbekistan Political Front • Uzbekistan: The number of deputy Prime-Ministers is down to six On October 27 Rustam Kasymov, the deputy Prime-Minister of Uzbek government in charge of social issues, science, education, healthcare, culture and contacts with CIS partners, was released from his position, Uzmetronom.com reports. Rustam Kasymov took over the position of President of University of World Economy and Diplomacy (UWED) whereas Kasymov’s functions were transferred to Abdulla Aripov, another deputy Prime-Minister for information systems and telecommunications as well as former Head of Uzbek Agency for communications and information (UACI). Therefore, the number of deputy Prime Minister chairs in the Uzbek government is down to six from seven. Ad notam, Hakim Muhitdinov, the first deputy of Aripov, became new General Director of UACI. Geo Strategic Front • Pakistani Troops Capture Town Used By Uzbek Militants TASHKENT -- Pakistani troops have surrounded Kaniguram, a key base for Uzbek Islamic militants in Pakistan's South Waziristan region, RFE/RL's Uzbek Service reports. The town overlooks Karama, a city reportedly being used as a training base for foreign terrorist groups like the Islamic Movement of Uzbekistan (IMU). The Pakistani Army
115
BPM- Weekly Report # 91 Zone 1-Asia
launched an offensive into South Waziristan two weeks ago, aiming to root out militants. General Athar Abbas, a Pakistani Army spokesman, told RFE/RL that "the first achievement is that [Kaniguram] has been surrounded." But he said the Uzbeks living there -- some estimates say as many as 1,000 -- are "really ferocious fighters." Abbas said he is hopeful that they will be defeated. He added that the army has "credible" information that IMU leader Tohir Yuldashev, who was reported killed on October 2, is dead and the group has chosen a "second leader," someone who worked closely with Yuldashev. Abbas said Uzbeks are still in "complete command" of the area and "quite a number of them have been killed," though he did not give a specific number. Abbas said that civilians will not be harmed by the Pakistani army during the fighting, but said he would not discuss the military's tactics until the operation is completed. • Uzbekistan: Authorities take 27 suspected Islam militants into custody Twenty-seven individuals have been arrested in Uzbekistan on suspicion of religious extremism. A source tells EurasiaNet the authorities are building a case that connects the detainees to a series of murders in Tashkent during the summer. The 27 men, who are all said to come from Syr Darya Province, were reportedly taken into custody in early October. Their detention is believed to be related to the murder of Abror Abrorov, an assistant at Tashkent’s Kukeldash Mosque on July 16; a knife attack on Anvar-qori Tursunov, the chief Imam at the same mosque on July 31; and the murder of Hasan Asadov, an Interior Ministry anti-terrorism and anti-corruption officer who was investigating the crimes at the time of his death on August 9. "Parents and relatives of the arrested men say they know absolutely nothing about [the detainees’] fate. When the relatives went to the local police department, they were told that a couple of days before [October 2] a bag full of explosives was found in front of the provincial prosecutor’s office and that’s also why the men are being detained," the source said on October 26. Economic /Energy Front • Uzbekistan: The parliament promises to create one million jobs in 2010 On October 29 the legislative house of Olyi Mazhlis (the parliament) of Uzbekistan approved jobs creation and public employment program for 2010, according to which 950 thousand new jobs will be created in the republic, Gazeta.uz reports. Specifically, over 280 thousand jobs are to be established in service sector, 210 thousand jobs – in outwork and over 60 thousand jobs – in development of production and social infrastructure. The program developers affirm that it is based on the results of current job market analysis, its development forecast until the end of 2009 and program of national economic development, scheduled to 2010. Meanwhile, Uzmetronom.com reports that "basic arithmetic calculations prove inconsistency of governmental program. Assuming that each created job will pay twice as less as official average salary in the republic ($160) one will learn that the government needs to find $1 824 000 000. This is utopian and impossible amount for the state and business".Uzmetronom.com believes that the deputies of Uzbek parliament are far away from reality and strive to implement presidential program on creation of additional jobs. According to the web site, governmental program manipulates the faked numbers. • Uzbekistan: LG refrigerators to be produced in Samarqand By the end of 2009 OJSC SINO, based in Samarqand (Uzbekistan), will start the production of LG Electronics refrigerators. At this point, the final installation of
116
BPM- Weekly Report # 91 Zone 1-Asia
refrigerators assembly line, based on the technology of famous South Korean company, is in progress. The plan says that the first item will be produced in December of this year. In the next year the plant is planning to produce 50 thousand LG refrigerators per year. LG consumer electronics will be produced at OJSC SINO that has been operating in the industry for few years. Today, the plant produces 7 types of household refrigerators and freezing installation for shops. Since recently the compressors of Italian Zanussi were added to the refrigerators. The Samarqand market is a recognized and attractive market for refrigerators and air conditioners. Today, over a dozen of foreign producers offer their products through local retailers. Social Front • Another Uzbek Student Dies During Cotton Harvest URGENCH, Uzbekistan -- A 10th young person has died in Uzbekistan while involved in compulsory work on the cotton harvest, RFE/RL's Uzbek Service reports. A witness told RFE/RL that a bus filled with students overturned as it was driving into a cotton field near the western city of Urgench, and one boy died as a result. Earlier this year, two young women died in an accident while attempting to leave a cotton field in the Ferghana Valley, and last year a student was killed by wolves while working in a cotton field. The death from the bus accident is the 10th official death of a student during the cotton harvest season, when schoolchildren are required to take part in the harvest. Uzbekistan is the second-largest cotton exporter in the world. Several major clothing companies have called for a boycott of textiles made with Uzbek cotton because of the government's use of child labor. • EU Lifts Uzbek Sanctions Despite Rights Concerns LUXEMBOURG (Reuters) -- The European Union has lifted sanctions on Uzbekistan, despite concerns about human rights in the former Soviet republic. Although many EU states are concerned about the rights situation, the 27-country bloc wants to boost relations with a country that could be an important energy supplier and a route for supplies for the Western military mission in Afghanistan. EU foreign ministers said in a statement during talks in Luxembourg there had been progress on human rights. "To encourage the Uzbek authorities to take further substantive steps to improve the rule of law and the human rights situation...and taking into account their commitments, the council [of EU foreign ministers] decides not to renew the remaining restrictive measures," the statement said. The decision removes an arms embargo, the last of the sanctions imposed over a crackdown on protesters in the town of Andijon in 2005, in which witnesses say government troops killed hundreds of protesters. The EU decided a year ago to lift visa bans on top Uzbek officials to reward what it said was progress in human rights but kept in place the arms embargo for another year. Human rights groups have urged the EU not to end sanctions, saying there has been insufficient progress on human rights in the Central Asian state, a potential source of EU natural-gas imports. "If the arms embargo is lifted without an investigation, the EU will be making a mockery of its own demands and the only form of international pressure over Uzbekistan will be gone," Amnesty International said last week. The EU has been trying to improve ties with Central Asian states to help secure future energy supplies and diversify away from Russian gas and oil. Uzbekistan, which borders Afghanistan, has shown signs of wanting better relations with Europe and allowed the transit of nonmilitary supplies for U.S.
117
BPM- Weekly Report # 91 Zone 1-Asia
troops in Afghanistan this year. But it rebuffed calls to do more to protect human rights during talks with the EU last month, when it told Brussels to improve its own rights record. Rights groups say Uzbekistan has jailed thousands of dissidents and political foes of President Islam Karimov, a charge the government denies. Business and Politics in Muslim World
China Fareeha Sarwar 25th to 31st October 2009 Presentation Date: 4th November 2009
REPORT PATTERN: Outline National report Political front • Li Yuanchao explaining China's strategy in Harvard(26th October) • China's top legislature starts bimonthly session (27th October) • Senior official urges CPPCC members to better fulfill duties with more studies (27th October) • Chinese lawmakers push for clearer rules on tort liability (27th October) • • Detention center death triggers revision of China's compensation law (27th October) • China considers new law to enhance diplomatic personnel management (27th October) • Army no threat, top general says (27th October) • Chinese vice president meets senior Vietnamese official (27th October) • China's anti-graft chief urges efforts to build clean government, address people's complaints (28th October) • Chinese Vice President urges efforts to strengthen Party building at grassroots organizations (28th October) • CPC watchdog woos tip-off with new website (28th October) • CPC creates new system to evaluate performance of Party, gov't officials (29th October) • China opposes arms sales to Taiwan by any nation (29th October) • 4th China fleet to sail for anti-piracy mission (29th October) 118
BPM- Weekly Report # 91 Zone 1-Asia
• • • • •
Chinese leader urges learning from CPC founder (29th October) VP Xi: China to take active part in UN work (29th October) China Exclusive: Chinese archivists unlock secrets of the dead in MIA search (30th October) China appoints new education minister (31st October) Chinese Vice President urges CPC members to better comprehend scientific theory (31st October)
• Foreign relations •
China, New Zealand pledge to promote free trade, fight against protectionism (25th October)
•
Chinese, Australian PMs call for early FTA deal (25th October)
• • • • •
Taiwan leader Ma calls for lasting cross-Strait peace (26th October) Chinese navy vessel sails for ROK, Japan (26th October) China appeals for U.S. to lift embargo against Cuba (27th October) China, Mongolia vow to step up parliamentary ties (27th October) Vice chairman of NPC Standing Committee meets with Latvian guest(27th october) China's top political advisor meets Pakistani Senate deputy chairman (27th October) China, Ukraine agree to enhance cooperation (27th October) China eyes consensus on Iran's nuclear-fuel supply issue (27th October) China's Wen to visit Egypt, attend China-Africa forum (28th October) Krishna admits to Chinese incursions, but says no cause for alarm(28th October) Sino-US military ties march forward (28th October) Chinese, US military leaders vow to further co-op (28th October) China, US military officials meet on ties (28th October) Chinese vice premier visits Albania (29th October) Chinese vice premier arrives in Australia for official visit (29th October) Chinese embassy in Iraq steps up security: FM (29th October) Senior Chinese official meets Finnish minister of justice (29th October) Canada looks to renew ties with China (30th October) High-level talks warm up Obama's visit (30th October) Hu invites DPRK leader to visit China: KCNA (30th October) Visit marks end of tension (30th October) Chinese vice-premier meets Australian PM on ties (31st October) China, Australia agree to enhance practical co-op (31st October) U.S. House honors ancient Chinese philosopher Confucius (31st October)
• • • • • • • • • • • • • • • • • • •
119
BPM- Weekly Report # 91 Zone 1-Asia
Economic front • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
Trade Ministers of China, Japan, South Korea oppose protectionism (25th October) WISCO posts 75.79% fall in Q3 net profit(26th October) Platinum jewelry demand is rising(26th October) Net profit of Vanke up 30% in first nine months(26th October) Mergers drop number of centrally-administered SOEs to 132(26th October) Mainland, Taiwan to bridge Straits with economic pact(26th October) Expert sees big health market in China (26th October) E. Asia, ASEAN cooperate for common good(26th October) Competition heats up in Chinese instant noodle market (26th October) Aussies say to welcome Chinese investment for long (26th October) China triples investment abroad in Q3 (27th October) Netbook gravy train starts to slow as euphoria fades(27th October) Dollar wobbles after Chinese comments (27th October) E Fund gets $1b for overseas investment (27th October) China considers new law to protect oil pipelines (27th October) China's growth benefits Chile copper export: report (27th October) China's broadband users top 99.33 mln (27th October) China, Nigeria sign agreements on Abuja-Kaduna railway (27th October) China locked into financial policy (27th October) China Life reports more than doubled net profit in Q3 (27th October) Aggressive China online game firms eye global crown (27th october) China to tighten rules on personal loans (28th October) Japan automakers see output boom in China (28th October) US calls for balanced trade at meeting with China (29th October) 22 Chinese companies listed on Nasdaq this year (29th October) China to pursue trade case against US automakers (29th October) Defense university builds China's fastest supercomputer (29th October) China, US start annual trade talks in E.China (29th October) China locked into financial policy (29th October) China retail sales likely to grow 16% in 2010: commerce official (29th October) China, US pledge no more tit-for-tat in trade (29th October) France goes back on China's shopping list (29th October) Friction Over Auto Exports in U.S.-China Trade Talks (29th October) China creates 7.57M new jobs from Jan. to Aug. (30th October) China sets up $1.32B high-tech VC funds (30th October) PBOC likely to adopt a tighter monetary policy: report (30th October)
Social front • Tourists now come to Bird's Nest to roost (25th October) • Public cringes at vaccine shot(26th October) • Education Ministry supports formation of China's "Ivy League" (26th October) 120
BPM- Weekly Report # 91 Zone 1-Asia
• • • • • • • • • • • • •
WHO: China's H1N1 vaccine safe, effective(27th October) President Hu confers Nightingale medals on laureated nurses(27th October) Police nab 5,134 suspects over invoice frauds (27th October) Mainland reports new death case of A/H1N1 flu(27th October) Kidneys illegally sold online(27th October) Canada repatriates criminal suspect to China (28th October) President Hu continues to be honorary chairman of China Red Cross Society (29th October) Expert drums up flu shot lest 'endless troubles' (29th October) China presents its universities in Bulgaria (29th October) China faces "severe challenges" of flu (29th October) 50% of new expats leave China early (30th October) 3.46M students benefit from Project Hope (30th October) China's "father of space technology" dies at 98 (31st October)
Ethnic issues Environmental front • Solar industry is reined in(26th October) • China, US will grow solar power competition (26th October) • China expected to complete world's first land cover map of Antarctica (26th October)
Regional report North Politics • PLA to enlist at 13 Beijing private colleges (30th October) Social front • PhD holder jailed for selling skulls(27th October) • H1N1 flu cases explode in Beijing(29th October) • Plans to rebuild damaged CCTV building under way (29th October) • Students released from flu-ridden camp (30th October) • Wen visits H1N1 patients, medical staff (31st October) Economic front • Shanxi merging collieries amid work safety concern(26th October) • Investors to sue 11 renowned banks(27th October) • Govt sued for not delivering $2.4m investment prize money (30th October) Northwest Politics Social front 121
BPM- Weekly Report # 91 Zone 1-Asia
•
Police seize 12 homemade pistols in northwest China (27th October)
Economic front • Cotton acreage shrinks in Xinjiang in 2009 (26th October) Northeast Politics Social front • 1,000-year-old roofed wooden arch bridge-- Wan'an Bridge in Pingan, China's Fujian (29th October) Economic front Southwest Politics • Negative propaganda on Tibet should be halted (26th October) Social front • Sichuan plans 10-year overhaul for education in ethnic regions (26th October) • Trial of 31 opens in Chongqing on organized crime charges (26th October) • New rock paintings of Tubo period discovered in Damxung, Tibet(26th October) • Meeting on advanced degree of Tibetan Buddhism held in Beijing(26th October) • Chinese painting exhibition on Tibet held in Milan(27th October) • Economic front • China discovers Asia's biggest gas field in Chongqing (26th October) South central Politics Social front • Residents say no to garbage incinerator(27th October) • Teenage heroes mourned in central China (28th October) • Death penalty sustained to man in fatal factory brawl (28th October) • $52.7M jackpot winner doles $1.5M to charity (28th October) Economic front • China's 4th Satellite Launch Center to be Built in Hainan (29th October) East Politics Social front • Shanghai confirms driver's entrapment claim(26th October) • Drought lingers in southern, eastern China (26th October)
122
BPM- Weekly Report # 91 Zone 1-Asia
• China's ancient porcelain capital attracts new blood (27th October) • Shanghai may greet Obama with Disney park deal(28th October) • People enjoy pure pleasure in China's Jinan (29th October) • 11th National Games concludes in Jinan (29th October) • Wen stresses medical, social security reforms (30th October) Economic front • Qinghai-Tibet railway to enter 4th winter operation(26th October) • Man jailed for illegal gold futures operation (29th October) HONGKONG AND MACAU Politics • HK launches interpretation service for ethnic groups (31st October) Social front • HK signs working holiday scheme with Japan (27th October) • 95% of meat passes safety test in HK (27th October) • Hong Kong holds exercise for Games safety (28th October) Economic front • China's State Council approves feasibility report of Hong Kong-Zhuhai-Macao Bridge (29th October) • HK stocks dive 2.28% on peripheral markets declines(29th October) • HK inflation to remain reined-in: finance chief (30th October)
123
BPM- Weekly Report # 91 Zone 1-Asia
National report Political front • Li Yuanchao explaining China's strategy in Harvard(26th October) Li Yuanchao, a high-ranking official of the Communist Party of China, the country's ruling party, delivered a speech Friday at Harvard University, highlighting the distinctive Chinese "institutional mechanisms" that help China tackle the global financial crisis. In a speech entitled "Coping with the Crisis -- China's Benign Interactions with the World," Li, head of the Organization Department of the CPC Central Committee, gave an in-depth analysis of how China has responded to the crisis. "It is because of its appropriate institutional mechanisms that China has been able to achieve initial success in combating the crisis and to realize a relatively early recovery," Li, also a member of the Political Bureau of the CPC Central Committee, said. China's socialist market-oriented economy provided an efficient stabilizing mechanism as the government initiated a series of fiscal, monetary, land, industrial, investment and other policies in a bid to expand domestic demand after the onset of the crisis, Li explained. In addition, continuing reform and opening up served as catalysts for China's development. Specifically, China had deepened reforms in income distribution, energy and resource pricing regimes and private sector development. It also encouraged service outsourcing and establishment of free-trade areas. "All these measures have given strong impetus to development across the country," Li said. Li also underscored the special role of the CPC in tackling the severe economic slowdown, saying that "it is the way that the Communist Party of China works that made it possible to pool resources from all sectors for accomplishing major undertakings." Meanwhile, key enterprises in the public sector shouldered great social responsibilities by
124
BPM- Weekly Report # 91 Zone 1-Asia
pledging not to sack employees, a move that helped maintain economic stability. Noting that this year marks the 60th anniversary of the founding of the People's Republic of China and the 31st year into reform and opening up, Li said China had engaged itself with the rest of the world "in such profound interactions as never seen in history." "China's development is getting all the more integrated with the whole world and has become a constructive part in the world's development," he told a big audience at the renowned Harvard Kennedy School of Government. "China will continue to make contributions to the world by developing in a scientific, peaceful and harmonious way," he added. Li also called for healthy interaction between China and the United States as it "will not only help the world cast off the shadow of the economic crisis, but contribute to world peace and stability." Moreover, Li met with Harvard University President Drew Faust on Friday and held discussions with experts at Harvard Kennedy School. • China's top legislature starts bimonthly session (27th October) China's top legislature Tuesday discussed granting equal representation in people's congresses to rural and urban people, according to a draft law amendment. China's top legislature Tuesday discussed granting equal representation in people's congresses to rural and urban people, according to a draft law amendment. A draft amendment to the Electoral Law, tabled at the 11th meeting of the Standing Committee of the 11th National People's Congress (NPC), for the first time aims to balance elections of lawmakers. It requires "both rural and urban areas adopt the same ratio of deputies to the represented population in elections of people's congress deputies." The law did not specify the exact population that a lawmaker would represent. The top legislature would decide the specific ratio after passing the amendment, said Li Shishi, director of the Commission for Legislative Affairs of the NPC Standing Committee, while briefing lawmakers at the legislature's opening session. It would take two or three readings before a law was passed by China's top legislature. Li suggested the draft amendment to the Electoral Law be submitted to a bimonthly session in December and a NPC plenary session in March next year for a second and third reading. The Electoral Law was enacted in 1953 and completely revised in1979. It then underwent four minor amendments. The law provides legal guarantees for elections of deputies to people's congresses, the country's fundamental political system. Li said after the last amendment in 1995, the law stipulated that each rural deputy represented a population four times that of an urban deputy. Every 960,000 rural residents and every 240,000 urbanites were represented by one NPC deputy respectively, according to the law.
125
BPM- Weekly Report # 91 Zone 1-Asia
Critics said this could be interpreted as "farmers only enjoying a quarter of the suffrage of their urban counterparts." During previous amendments in the 1980s, the difference was eight times greater. But Li said such a provision was "in accordance with the country's political system and social conditions of that time" and was "completely necessary" as the rural population was much more than that of cities and an equal ratio of rural and urban representation would have meant an excessive number of rural deputies. The rural population made up almost 90 percent of China's total when the New China was founded in 1949. With the development of urbanization, the ratio of urban and rural residents was about 45 to 53 last year. Li said that with rapid urbanization and rural economic development, the time was right for equal representation, which was conducive to "mobilizing people's enthusiasm and creativity" and the development of democracy. He said the amendment ensured equal representation among regions and ethnic groups. The amendment echoed Communist Party of China (CPC) Central Committee General Secretary Hu Jintao, who proposed in a report to the 17th CPC National Congress in October 2007 that rural and urban areas should have equal rights in election of lawmakers, as "the people are masters of the country." Zhou Hanhua, research fellow with the Law Institute under the Chinese Academy of Social Sciences, said the draft amendment was in line with social change, and "from the legal perspective it shows that all rights are equal under the law." The draft amendment also added stipulations such as "organizing more face-to-face contact between candidates and electors" and "providing basic introductions of candidates." The number of deputies to the NPC is limited within 3,000, and the distribution of the NPC deputies is decided by the NPC Standing Committee, or the top legislature, according to the law. It says a name list of election candidates to a people's congress must be made public 20 days before the election, and officially announced five days before the election. Electors may vote for or against or abstain from voting, or vote for people other than the candidates. Candidates who stand for election as deputies to a people's congress can be deemed elected "if they receive more than half of the votes," it says. •
Senior official urges CPPCC members to better fulfill duties with more studies (27th october) A senior official of the Chinese People's Political Consultative Conference (CPPCC) on Tuesday urged the country's political advisors to enhance the study of new theories and knowledge to better fulfill their obligations. Wang Gang, vice chairman of the CPPCC National Committee, made the appeal when addressing a seminar to call for strengthened studies among CPPCC members. Jia Qinglin, chairman of the CPPCC National Committee, met the members attending the workshop. Wang said all CPPCC members should take the acquisition of new knowledge as an important task in an era featuring continuous progress of science and technology.
126
BPM- Weekly Report # 91 Zone 1-Asia
They should work hard to make innovations in the CPPCC' s theories and working mechanism and make new achievements in their political advisory career, Wang said. • Chinese lawmakers push for clearer rules on tort liability (27th October) Chinese lawmakers Tuesday began considering specific compensation for losses caused by infringements of personal rights, such as name, reputation, portrait and privacy rights, in a draft amendment on tort liability. The draft amendment to a draft law on tort liability was deliberated for the third time at the bi-monthly session of the Standing Committee of the 11th National People's Congress (NPC), China's top legislature, which opened Tuesday in Beijing. According to the draft amendment, parties that suffer infringements of personal rights are entitled to compensation equal to their losses. In cases where losses are hard to assess, compensation should equal the infringers' gains. People who have suffered infringements of their personal rights could also sue for psychological harm, although no details were given on how this would be assessed. Committee member Zheng Gongcheng recommended the formulation of specific rules on how to assess and compensate psychological injury. Lawmakers also considered a proposal to set the same compensation for all victims of an accident that results in "many"deaths. Death compensation is normally case specific, depending on the victim's age, income and other related factors. The draft specified that medical institutions could be freed from liability in medical accidents if the patients or their close relatives had not agreed to necessary treatment and medical staff fulfilled reasonable obligations in emergencies, such as saving critical patients, or deaths from incurable diseases. The draft stated that if an animal harms a person, its owner should be liable for failing to take safety measures. If a deserted or runaway animal hurts a person while at large, its original owner should liable. According to the draft, direct employers would be liable for employees dispatched by other organizations under agreement if the employees injure other parties during work. If the organization that dispatched the worker was also at fault, it should take complementary liability. Members of the Standing Committee of the NPC said the latest draft needed to be improved as it was still far from a mature draft law.
127
BPM- Weekly Report # 91 Zone 1-Asia
Committee member Li Zupei suggested more work be done to clarify some terms, such as "to a necessary extent" and "reasonable obligations". Wu Bangguo, chairman of the Standing Committee of the NPC, is presiding over the five-day session.
Detention center death triggers revision of China's compensation law (27th October) A draft amendment to China's state compensation law, which aims to better defend people's rights from being violated by state organs, was submitted to the top legislature for a third reading Tuesday. The bill was tabled for review at the bi-monthly session of the Standing Committee of the 11th National People's Congress (NPC), which opened Tuesday in Beijing. After the second reading in June, the amendment was revised to include abuse and failure to prevent assaults or abuse in the list of violations by law enforcement departments. The state must compensate victims or their families if they are injured or killed because of these violations. The revision has been proposed following death of a man in a detention center in the southwestern Yunnan Province in February which aroused nationwide concern. Li Qiaoming, 24, was beaten to death by three fellow inmates on Feb. 8, but the detention center at first claimed that he died of playing a game of "hide-and-seek." The existing state compensation law does not include abuse, but only assault. Nor does it cover the failure by law enforcement departments to prevent assault or abuse. In the new version, detention centers are listed with the police, procuratorates, courts and prisons as having an obligation to compensate people for violating their rights in criminal cases. The draft amendment has been the first since the law took effect in 1995. It aims to guarantee smoother channels and improve procedures for victims seeking compensation from state organs. The draft amendment also enables a person to seek compensation if he or she is found innocent even when the arrest is made under legal procedures. For the first time, it also includes compensation for psychological injury. The latest version of the draft does not detail how such injuries and damages can be assessed, although several lawmakers suggested clearer definitions during previous readings. "So long as state compensation involves violations of personal freedom, life and property rights, cases will differ greatly and we do not have enough experience yet to set a universal standard (of the assessment of psychological injury)," said Hong Hu, vicechairman of the NPC Law Committee, elaborating on the draft amendment at the session. "It will be better not to define it in detail in the law, but through judicial explanations based on future practice," he said. •
•
China considers new law to enhance diplomatic personnel management (27th October)
128
BPM- Weekly Report # 91 Zone 1-Asia
China's top legislature Tuesday began its second reading of the first draft law on diplomatic personnel, focusing on life accident insurance and easing conditions for marriage. The draft, submitted by the Ministry of Foreign Affairs to the Standing Committee of the 11th National People's Congress (NPC) for a first reading in June, will be the first of its kind to regulate Chinese government agents working in the 171 countries with which China has diplomatic ties. The draft law had integrated recommendations solicited from the public on the official website of the NPC, npc.gov.cn, with opinions by holding symposiums among diplomats and experts after the first reading. The draft stipulates that diplomats will be provided with life accident insurance along with necessary medical care and safety which were already in the first draft. The draft also eases terms on marriage. In the first review, the draft mandated that diplomats intending to marry must have their prospective spouses vetted. According to the second version, diplomats only have to report the information about their prospective spouses before marriage. In particular, people whose spouses had acquired foreign nationality or long-term, permanent residence permits would not qualify for diplomatic work abroad. The draft lifts the minimum age for a diplomat from 18 to 23. It also specifies the roles of ambassador, consul general and consul as the chief executives of embassies, consulategenerals and consulates respectively. China has about 5,000 diplomats serving in more than 250 embassies, consulates general and other overseas posts. • Army no threat, top general says (27th October) Development of the People’s Liberation Army (PLA) is to protect China’s economic development and safeguard its territorial integrity, a top Chinese general said here on Monday. General Xu Caihou, vice-chairman of China’s military commission, insisted that China desires collaborative international relations. Addressing an audience of foreign policy experts at the Center for Strategic and International Studies, a Washington think tank, Xu said military ties were generally moving in a “positive direction”. “We are now predominantly committed to peaceful development and we will not and could not challenge or threaten any other country” and “certainly not the United States,” Xu said.
129
BPM- Weekly Report # 91 Zone 1-Asia
US officials have expressed alarm about what they see as China’s unprecedented military expansion over the past year. Last week, US Defense Secretary Robert Gates said better dialogue was needed to avoid “mistakes and miscalculations.” “I want to make clear that the limited weapons and equipment of China is entirely to meet the minimum requirements for meeting national security,” Xu said. “We will never seek hegemony, military expansion or an arms race,” he said. Xu said that China’s double-digit annual increases in defense spending is “quite low” both in real terms and as a percentage of its gross domestic product. Whereas US defense spending amounts to 4.8 percent of GDP, China’s was only 1.4 percent, he said. The PLA focused primarily on protecting China’s economic development and defending against separatist and extremist challenges, which he said were clearly on the rise. “There is still a huge gap between China and the developed world. We are now predominantly committed to peaceful development, and we will not, and could not, challenge or threaten any other country,” he said. “We believe that we should prudently handle current and future international affairs with a way of thinking that seeks accommodation instead of confrontation, and win-win instead of zero sum games,” he said. The general is scheduled to meet Gates on Tuesday as part of a US tour that will also take him to US military bases and installations around the country – the latest in on-again, offagain efforts by the two countries to improve often tense relations. The visit comes ahead of US President Barack Obama’s first trip to China Nov 15 to 18. Xu said China wanted to invigorate military-to-military relations with the United States, but warned that Beijing regarded recent incursions into its 200-mile economic zone by US naval vessels as an infringement of its sovereignty. But he said US-China relations had undergone a “smooth transition” since Obama took office in January, moving ties between the two countries to a new stage. “The China-US relationship is one of the most important bilateral relationships in the world. Exchanges and cooperation between the United States and China are important for world peace and development,” he said. • Chinese vice president meets senior Vietnamese official (27th October) Chinese Vice President Xi Jinping on Monday met with Secretary of the Secretariat of the Central Committee of the Communist Party of Vietnam (CPV) Le Van Dung at the Great Hall of People in Beijing. During the meeting, Xi said the two countries had stepped up their strategic cooperative partnership under the guidance of the principle of "long-term stability, facing the future, good-neighborliness and friendship, and all-round cooperation." China was willing to make efforts with Vietnam to expand practical cooperation and properly handle sensitive issues so as to push forward the all-round strategic cooperative partnership, Xi said. Xi said he hoped the two armed forces would continue to enhance exchanges, increase mutual trust and make contributions to cementing and developing bilateral ties.
130
BPM- Weekly Report # 91 Zone 1-Asia
Dung, also director of the General Political Department of the Vietnam People's Armed Forces, said the Vietnamese people always bore in mind the support of the Chinese people in Vietnam's national liberation and socialist construction process. Vietnam and China shared broad common interests, said Dung, adding the two nations should enhance exchanges and cooperation in a bid to advance the bilateral strategic cooperative partnership. •
China's anti-graft chief urges efforts to build clean government, address people's complaints (28th October) China's anti-graft chief He Guoqiang on Tuesday urged discipline and supervision authorities to press ahead with the building of a clean government and strengthened efforts in corruption prevention. He, secretary of the Central Commission for Discipline Inspection of the Communist Party of China (CPC), said in a meeting that efforts should be made to handle people's complaints and embrace innovation in the establishment of anti-corruption mechanism. He asked discipline and supervision authorities to combat extravagance, intensify crackdown on the practice of "small coffer", which refers to fund, securities and assets that should be but fail to be listed into the account books of CPC and government organizations in accordance with relevant laws and regulations. He also called for authorities to make public Party affairs, especially at grassroots organizations, and investigate and prosecute corruption cases. Efforts should be made to expand channels for the general public to be involved in anticorruption endeavor, said He, who is a member of the Standing Committee of the Political Bureau of the CPC Central Committee. •
Chinese Vice President urges efforts to strengthen Party building at grassroots organizations (28th October) Chinese Vice President Xi Jinping on Tuesday urged efforts to reinforce Party building at grassroots organizations so as to give full play to the Party's leading role in building civilized and harmonious neighborhood. In a meeting on the study and implementation of the Scientific Outlook on Development, Xi urged members of the Communist Party of China (CPC) in city's neighborhood committees to promote local development and safeguard social stability. Xi, also member of the Standing Committee of CPC Central Committee Political Bureau, said neighborhood committees played a significant role in dissolving social conflicts and promoting social and economic development in urban areas. Party members at grassroots organizations should find out people's complaints and help solve their problems, and do practical things for them, he said
131
BPM- Weekly Report # 91 Zone 1-Asia
• CPC watchdog woos tip-off with new website (28th October) China's discipline watchdog Wednesday opened a national informant website, to deal with the public's reports on discipline violation problems of the Party organizations and its members, and to collect suggestions for the Party's anti-corruption work. The informant website, www.12388.gov.cn, was launched by the Central Commission for Discipline Inspection of the Communist Party of China (CPC), and the Ministry of Supervision. Citizens in China's 31 provinces and autonomous regions can all send their complains through the website, which has 31 portals for citizens from different places sending their appeals. Each computer is required to send three letters each day in order to prevent repeated appeals. The discipline watchdogs are also planning to establish informant website in city and county levels, in order to build a nationwide reporting system. Since 2005, local supervision and discipline departments began to set up informant website one after another, which had accepted a large number of public complaints, helped relevant departments uncover valuable clues and also played an important role in combating corruption. However, these websites did not work well because of its non-standard domain name and inadequate working system. On June 26 last year, Supervision Ministry opened an informant hotline "12388" for people to report discipline offences of civil servants and officials. CPC creates new system to evaluate performance of Party, gov't officials (29th October) The Communist Party of China (CPC) Wednesday issued four documents calling for an improved evaluation system for Party and government officials. •
The documents issued by the General Office and the Organization Department of the CPC Central Committee said an improved official evaluation system was "vital to the scientific development of the country." The improved system should give equal weight to officials' contribution to economic development, and to their contribution to the coordinated development of the economy and the environment, maintaining public security, and to improvements in living standards, said the documents. Officials should be assessed on a yearly basis in addition to during and after accomplishing major tasks, the documents said. They should also be evaluated when they end their terms and when promoted. More people, including non-Party members, should be invited to participate and supervise evaluations of Party and government officials, and the results should be made public.
132
BPM- Weekly Report # 91 Zone 1-Asia
The promotion, education, reward and punishment of Party and government officials should be conducted in accordance with their evaluation results, the documents said. • China opposes arms sales to Taiwan by any nation (29th october) China is firmly opposed to arms sales to Taiwan by the United States and any other country, Foreign Ministry spokesman Ma Zhaoxu said here on Thursday. According to media reports, the Taiwan authorities said Thursday that the US government suspended its sales of F-16 jet fighters to Taiwan because of pressure from the Chinese side. In reply to a question on those reports, Ma said the stance of the Chinese government on arms sales to Taiwan is clear and consistent, and remains unchanged. China is firmly opposed to arms sales to Taiwan by the United States and any other country. The US arms sales to Taiwan remains one of the major obstacles to maintaining the healthy growth of the military-to-military relationship between China and the United States, Vice Chairman of China's Central Military Commission Xu Caihou said Tuesday during his visit to the United States. • 4th China fleet to sail for anti-piracy mission (29th October) A Chinese navy flotilla will depart from the Zhoushan Islands on Friday to escort merchant vessels and protect them from pirate attacks in the Gulf of Aden, a spokesman with China's People's Liberation Army Navy (PLAN) said Thursday. The flotilla will be the fourth task force China has deployed to the region since the end of last year. Missile frigates FFG-525 Ma'anshan and FFG-526 Wenzhou will replace the radarevading hulled FFG-529 Zhoushan and FFG-530 Xuzhou from the PLAN's third flotilla, which set sail to waters off Somalia in June. They would join by supply ship Qiandaohu, which has been on duty in the region for about three months. The PLAN's fourth flotilla would boast a crew of more than 700, including a unit of special forces, and would be equipped with two ship-borne helicopters, the spokesman said. They would actively take part in international humanitarian rescue missions and conduct friendly exchanges with foreign navies, he said. China made an unprecedented move by sending three warships to the Gulf on December 26 last year in the first overseas escort mission for merchant vessels. The PLAN warships have escorted hundreds of domestic and foreign vessels since the first flotilla arrived in the region. • Chinese leader urges learning from CPC founder (29th October) Chinese Vice President Xi Jinping on Wednesday called for efforts to carry on patriotism and spirit of selfless devotion for the advancement of the country's modernization drive. Xi made the call at a seminar to mark the 120th anniversary of the birth of Li Dazhao, a founder of the Communist Party of China(CPC).
133
BPM- Weekly Report # 91 Zone 1-Asia
Xi called Li a forerunner of the CPC movement, a great Marxist and an outstanding proletarian revolutionist. Born on Oct. 29, 1889, Li was a Chinese intellectual and one of the leaders of the anti-imperialism "May Fourth Movement" in 1919.He was captured by a warlord in 1927 and then executed. • VP Xi: China to take active part in UN work (29th October) Chinese Vice President Xi Jinping on Wednesday said the country would continue taking active part in UN work in various sectors. "We will make our contribution to building a harmonious world of sustained peace and common prosperity," Xi told former UN Secretary-General Kofi Annan, who has joined the UN Foundation's Board of Directors. China always supported the important role of the United Nations in international affairs, Xi said, hoping that all the international community would make efforts to strengthen the function of the United Nations. Xi briefed Annan and other members of the UN Foundation's Board of Directors about China's measures to cope with the international financial crisis. China would continue offering help for other developing nations within capacity to achieve development, he noted. As to the climate change issue, Xi said China was ready to make active coordination with all concerned parties to strive for positive achievements at Copenhagen Conference. Annan said China had made impressive progress in coping with climate change, environmental protection, energy saving and transport issues, noting that the country also made positive contribution to the UN work. The
UN
Foundation
would
increase
cooperation
with
China,
he
said.
The UN Foundation, a public charity, was created in 1998 after entrepreneur and philanthropist Ted Turner gave a historic 1-billion-gift to support UN causes and activities. •
China Exclusive: Chinese archivists unlock secrets of the dead in MIA search (30th October) Chinese military archivists have identified more than 100 documents that could lead to the repatriation of the remains of the United States personnel who disappeared during and after the Korean War (1950-1953). More than 50,000 U.S. personnel were killed in Korean Peninsula and along the border of China and the Democratic People's Republic of Korea (DPRK). The U.S. Department of Defense still lists more than 8,100 as missing.
134
BPM- Weekly Report # 91 Zone 1-Asia
China's People's Liberation Army (PLA) Archives Department has been combing more than 1.5 million archives of the then People's Volunteer Army (PVA), the Central Military Commission (CMC) and the PLA headquarters during the Korean War. Archivists have given at least four valuable archives found in the first 10 percent to the Defense Prisoner of War/Missing Personnel Office (DPMO) of the U.S. Department of Defense. Chinese archivists have also located the site where a U.S. bomber crashed 59 years ago in south China's Guangdong Province. After visiting the site and interviewing 19 witnesses who helped them identify the burial site of U.S. crew, they believe the possibility of finding the remains is high. A MYSTERY SOLVED During a visit to China in 2005, U.S. Defense Secretary Donald Rumsfeld, was given an unprecedented tour of the PLA Second Artillery Force headquarters. Rumsfeld requested the PLA help search for the whereabouts of one of his companions in U.S. Naval Aviation who was shot down in China's coastal area when piloting a surveillance aircraft in August 1956. In a return visit in July 2006, Gen. Guo Boxiong, vice chairman of China's Central Military Commission, gave a copy of archives confirming the pilot's death to Rumsfeld, finally ending the mystery over the pilot's fate. The U.S. side also received a copy of archives recording the story of another U.S. pilot who was shot down and protected from the Japanese by Chinese guerrillas in February 1944. First Lt. Donald Kerr, of the Flying Tigers, the 1st American Volunteer Group (AVG), who fought for China against Japanese forces in World War II, drew cartoon pictures on the back of a cigarette pack to explain his experience to Chinese civilians and Dong Jiang guerrillas who hid him for almost a month from Japanese troops. Under an agreement between Chinese and American military leaders in 2006, the PLA Archives Department started to thoroughly review PVA documents for indications as to the possible wheabouts of missing U.S. personnel in China. • China appoints new education minister (31st October) China's top legislature announced the appointment of two senior officials at the bimonthly meeting of the National People's Congress (NPC) Standing Committee Saturday. Yuan Guiren, in replacement of Zhou Ji, was appointed minister of education. Li Xiaofeng was appointed chief procurator of the military procuratorate under the People's Liberation Army to replace Gao Laifu. •
Chinese Vice President urges CPC members to better comprehend scientific theory (31st october) Chinese Vice President Xi Jinping said in Beijing on Friday that members of the Communist Party of China (CPC) should better comprehend the Scientific Outlook on Development and use it to guide their work. Xi, who is also a member of the Standing Committee of the Political Bureau of the CPC
135
BPM- Weekly Report # 91 Zone 1-Asia
Central Committee, called for intensified efforts of CPC members to study the gist of the recently concluded Fourth Plenary Session of the 17th CPC Central Committee and incorporate the requirements of Scientific Outlook on Development into daily work and life. Xi made the remarks at a meeting on further studying and implementing the Scientific Outlook on Development. The Scientific Outlook on Development stresses people-oriented, comprehensive, coordinated and sustainable economic and social development. The Fourth Plenary Session of the 17th CPC Central Committee, which concluded on Sept. 18, decided to expand democracy within the Party and further fight corruption. Foreign relations •
China, New Zealand pledge to promote free trade, fight against protectionism (25th October) Chinese Premier Wen Jiabao and New Zealand's Prime Minister John Key pledged in Hua Hin, Thailand Saturday to boost bilateral and regional trade amid the global financial crisis. During their half-hour meeting on the sidelines of the Association of Southeast Asian Nations (ASEAN) summits at the Thai beach resort of Hua Hin, Wen said the China-New Zealand ties have maintained a good momentum of development and the implementation of the Free Trade Agreement (FTA) signed last October between the two countries has achieved positive results. The two countries should let the FTA play a greater role and promote cooperation in such sectors as the resource exploration, food safety, energy-saving, environmental protection, science and technology, culture and education, as well as tourism. He also called for joint efforts against trade protectionism and to push for progress of the Doha Round talks of the World Trade Organization, which had been lagging behind its schedule. New Zealand highly valued the friendly cooperative relations with China, Key said, adding that he was satisfied with the remarkable growth of the bilateral trade boosted by the FTA. New Zealand is willing to deepen trade and economic cooperation with China, jointly promote regional free trade and fight against trade protectionism, he said. New Zealand has attached great importance to China's role in the fields of food security, energy-saving, emission control and in response to the climate change, he noted, hoping to enhance cooperation with China in this respect.
136
BPM- Weekly Report # 91 Zone 1-Asia
• Chinese, Australian PMs call for early FTA deal (25th October) Chinese Premier Wen Jiabao and his Australian counterpart Kevin Rudd called here on Saturday for an early signing of the Free Trade Agreement (FTA) between the two AsiaPacific major economies. "The mutual-respect, mutual-trust and cooperation between China and Australia, both as big countries in the Asia-Pacific region, will not only yield tangible benefits for the two nations, but also have a positive impact on a larger scale," Wen said in talks with Rudd on the sidelines of the Association of Southeast Asian Nations (ASEAN) summits. The key to maintaining a sound and steady development of bilateral ties lies in their respect for and care about each other's core interests and major concerns, Wen said, pledging to work together with Australia to boost their ties. The Chinese premier also highlighted the importance of an FTA between the two countries, asking the two sides to reach a quality, comprehensive and acceptable FTA deal in a spirit of positive cooperation, pragmatism, balance and mutual-benefit. While hailing the cooperation between Australia and China in various fields, Rudd said his country is willing to maintain high-level exchanges and deepen mutual understanding with China under the principle of mutual respect, equality and mutual benefit. He pledged adherence to the one China policy and respect for China's sovereignty and territorial integrity. Australia hopes to reach consensus as early as possible on the FTA and will bolster cooperation with China in such fields as trade, economy, investment, energy, agriculture and service, Rudd said during their meeting at a hotel in the central Thailand beach resort. The two leaders also exchanged their views on East Asian cooperation and climate change. • Taiwan leader Ma calls for lasting cross-Strait peace (26th October) Taiwan leader Ma Ying-jeou on Sunday called for both sides across the Taiwan Strait to resolve hatred through communication and negotiation and make peace an eternity. Ma made the remarks in a ceremony to unveil a memorial square, which was constructed on the site of the Kuningtou battle in Kinmen of Taiwan, according to local media reports. Troops of the Communist Party of China and the Kuomintang had fierce fightings and suffered heavy losses at the site on Oct. 25,1949, the year when the People's Republic of China was founded. Battlefield should be turned into a square of peace, opposition should be replaced by
137
BPM- Weekly Report # 91 Zone 1-Asia
reconciliation,
and
war
by
peace,
Ma
said.
Ma called for efforts to find a way that is acceptable for both sides to settle cross-Strait issues. • Chinese navy vessel sails for ROK, Japan (26th October) The "Zhenghe" training vessel of the Chinese People's Liberation Army (PLA) Navy left Dalian, northeast China's Liaoning Province, Monday for visits to the Republic of Korea (ROK) and Japan. At the invitation of the ROK's navy and Japan's maritime self-defence force, the vessel is scheduled to visit the ROK's port of Chinhae and Japan's port of Kure from October 29 to November 2, and November 5 to 9 respectively, according to the schedule. Two cadets from an institute under Japan's maritime self-defence force were on board the vessel to receive training with their Chinese counterparts, said Rear-Admiral Liu Yi, the PLA Navy's deputy chief of staff, who will lead the vessel. This was the first time for foreign cadets to take part in the whole course of navigation training on a Chinese navy vessel, according to Liu. Of nearly 370 people on board the vessel, 230, including 16 female, are cadets from four academies under the PLA Navy. They will have a variety of professional exchanges with their ROK and Japanese counterparts respectively, according to Liu. During the visits, four Chinese navy students will get the opportunity to receive training in academies of the ROK's navy and Japan's maritime self-defence force for two or three days, he said. The visiting ship "Zhenghe" was named after a Chinese maritime explorer who sailed overseas about 600 years ago. Dubbed "a mobile college on the sea", the vessel was put into service 22 years ago and has sailed for a total of more than 280,000 nautical miles. • China appeals for U.S. to lift embargo against Cuba (27th October) China on Tuesday called for the United States to lift its almost five-decade trade and travel embargo against Cuba. "The United Nations General Assembly adopted a resolution urging the United States to end its embargo against Cuba, which China approved," Chinese Foreign Ministry spokesman Ma Zhaoxu said at a regular briefing. Ma's comments came a day ahead of the UN General Assembly's vote on a similar resolution, the 18th consecutive year that the resolution has been brought to the assembly. "The Chinese government, as always, maintains that all countries observe the purpose and principle of the UN charter and international laws," Ma said. "In dealing with country-to-country relations, dialogue should replace confrontation while engagement and exchanges should supersede embargoes and sanctions," Ma said. The United States imposed the trade embargo on Cuba in early 1960s when both countries severed diplomatic ties. Over 17 consecutive years since 1992, a majority in the United Nations General Assembly have supported lifting the unilateral U.S. embargo. •
China, Mongolia vow to step up parliamentary ties (27th October)
138
BPM- Weekly Report # 91 Zone 1-Asia
Chinese top legislator Wu Bangguo met here Tuesday with Gavaagiin Batkhuu, deputy chairman of State Great Hural of Mongolia, Mongolia's parliament. Wu, chairman of the Standing Committee of the National People's Congress (NPC), China's top legislature, said the NPC and State Great Hural of Mongolia should enhance exchanges on governance, democracy and legal construction so as to inject vigor into bilateral relationship. This year marks the 60th anniversary of the establishment of diplomatic relations between China and Mongolia. The two countries forged good-neighborly partnership of mutual trust in 2003, signaling a new phase of bilateral ties. "China-Mongolia relations are now standing at a new starting point," said Wu, adding that China is willing to work closely with Mongolia to take the opportunity and lift bilateral ties to a new level so as to benefit the two peoples. Batkhuu said China's development provides an opportunity for further cooperation between the two countries, and Mongolia is expecting more investment from China. State Great Hural of Mongolia will strengthen friendly exchanges with the NPC to contribute to pragmatic cooperation in various fields between the two countries and generation-to-generation friendship, Batkhuu said. Vice chairman of NPC Standing Committee meets with Latvian guest(27th october) Zhou Tienong (R), vice chairman of the Standing Committee of the National People's Congress, meets with a delegation headed by Janis Urbanovics, chairman of Latvia's Harmony Centre party, in Beijing, capital of China, on Oct. 27, 2009. •
China's top political advisor meets Pakistani Senate deputy chairman (27th October) China's top political advisor Jia Qinglin meet here Tuesday with Jan Muhammad Khan Jamali, deputy chairman of the Senate of the Islamic Republic of Pakistan. Jia, chairman of the National Committee of the Chinese People's Political Consultative Conference (CPPCC), welcomed Jamali's visit to China, who led a delegation of senators from religious groups. He said that China and Pakistan enjoy all-weather friendship. Since they established diplomatic relations 58 years ago, bilateral relations have withstood the changes of the international situation and domestic situation, and become a model for relations between states. He said, at present, the Sino-Pakistani strategic cooperative partnership have maintained sound momentum and mutual-beneficial cooperation in various fields have been deepened. China is willing to work together with Pakistan to strengthen friendly exchanges, deepen pragmatic cooperation and push bilateral relations to a new height, Jia said. •
139
BPM- Weekly Report # 91 Zone 1-Asia
Jia said the CPPCC and the Pakistani Senate have maintained friendly relations and close contacts for many years, which has promoted the development of bilateral relations. He hoped that the two organizations can continue to carry out multi-level exchanges and cooperation in various fields, in order to promote the bilateral strategic cooperative partnership. Jia also introduced China's religious policies and life of the Muslims. Jamali said that Pakistan and China and the peoples have a brotherly friendship. Pakistan thanked the Chinese side who has provided sincere assistance. Pakistan is ready to work with the Chinese side to deepen exchanges and cooperation in various fields and promote bilateral relations, he said. Jamali said that Pakistan firmly supports the one-China policy and oppose any separatist activities against China. • China, Ukraine agree to enhance cooperation (27th October) Chinese Vice Premier Zhang Dejiang and Ukrainian Prime Minister Yulia Tymoshenko agreed to enhance cooperation between the two countries during talks on Monday. Zhang, leading a Chinese delegation, was on an official visit to Ukraine. During the meeting, Zhang said that, since the two countries established diplomatic ties 17 years ago, China and Ukraine have seen healthy growth in bilateral relations, frequent high-level visits and enhanced mutual political trust. The two sides have offered support on major issues concerning each other's interests and sustained efficient coordination in international and regional affairs, he said. China values its ties with Ukraine and views it as a trusted and reliable partner, Zhang said, adding that it is in the fundamental interests of both sides to cement and enhance mutually benefitial cooperation. China is willing to work with the Ukrainian side to further strengthen mutual political trust and deepen mutually benefitial cooperation to promote the all-round China-Ukraine partnership, hesaid. He also expressed thanks to Ukraine for its support on issues concerning Taiwan, Tibet, Xinjiang and Falun Gong. Speaking highly of China's fast development, Tymoshenko said her government values its ties with China and is ready to work with China to expand and deepen pragmatic cooperation in various fields. Ukraine and China are complementary to each other and needed to continuously tap their great potential for cooperation, she said. Tymoshenko extended a welcome to Chinese entrepreneurs in the delegation and said she hoped that Chinese enterprises will carry out more cooperation with the Ukrainian side in fields of strategic importance, such as energy, car and plane manufacture, sports and road equipment, and agriculture. Ukraine is the first leg of official visits by Zhang to three European nations. He will also visit Albania and Estonia. • China eyes consensus on Iran's nuclear-fuel supply issue (27th October) China hoped relevant parties could reach consensus through consultations on the issue of Iran's nuclear-fuel supply at an early date.
140
BPM- Weekly Report # 91 Zone 1-Asia
IAEA director general Mohamed El Baradei proposed a draft agreement over nuclearfuel needed for a research reactor in Iran. "We hope relevant parties could reach consensus through consultations on this issue at an early date," said Foreign Ministry spokesman Ma Zhaoxu. Representatives from Iran, the United States, Russia, France and the IAEA met in Vienna from Monday to Wednesday to discuss the nuclear-fuel supply for a research reactor in the Iranian capital of Tehran. The four countries agreed to conduct a feasibility review of proposals advanced by El Baradei. • China's Wen to visit Egypt, attend China-Africa forum (28th October) Chinese Premier Wen Jiabao will pay an official visit to Egypt from Nov. 6-7, Chinese Foreign Ministry spokesman Ma Zhaoxu announced on Tuesday. Wen will also attend the opening ceremony of the fourth ministerial meeting of the Forum on China-Africa Cooperation(FOCAC) in the Egyptian resort of Sharm el-Sheikh on Nov.8, Ma told a regular press briefing. During his stay in Egypt, Wen will meet Egyptian President Hosni Mubarak and hold talks with Prime Minister Nazef, Ma said. The ministerial meeting would be an important gathering after the Beijing Summit of the FOCAC in November 2006. The meeting will review how the consensus of the Beijing Summit has been implemented. It will also adopt a Sharm el-Sheikh declaration and an action plan for 2010-2012 to chart the path for further China-Africa cooperation. Chinese Foreign Minister Yang Jiechi and Commerce Minister Chen Deming will lead a delegation to attend the meeting. • Krishna admits to Chinese incursions, but says no cause for alarm(28th October) India on Wednesday said the resolution of boundary dispute with China would take time, requiring "a lot of patience", even as it acknowledged occasional Chinese incursions but said there was no cause for alarm. A day after his talks with Chinese counterpart Yang Jiechi here, External Affairs Minister S M Krishna said both the neighbours are eager to have cordial and friendly ties. He also said that China is not building any dam on Brahmaputra River, reports of which had raised concerns in India, which publicly amplified these. "China wants to have cordial relations with India and India would like to have very friendly relations with China. The effort is to take the relation to being one of partnership," Krishna told reporters here, adding that he found goodwill on both sides. When referred to incursions by Chinese troops, he said the border with China is not delineated and "as a result there could possibly be incursions once in a while but there is nothing to be alarmed about as the border is peaceful and relations are warm."
141
BPM- Weekly Report # 91 Zone 1-Asia
Krishna pointed out that Special Representatives of the two countries -- National Security Adviser M K Narayanan and Chinese Vice Foreign Minister Dai Binggou -- are engaged in discussions for resolution of the boundary question. "It is a long boundary, it's a time consuming process. We will have to have a lot of patience before they (Special Representatives) complete their task," he said. • Sino-US military ties march forward (28th October) The militaries of China and the United States have agreed to send more high-ranking officers to visit each other's country, with US Defense Secretary Robert Gates visiting China next year. That would be Gates' second China visit in the capacity of US defense secretary. The Chairman of the US Joint Chiefs of Staff Mike Mullen is also expected to visit China, and Chief of General Staff of the People's Liberation Army Chen Bingde will visit the US next year. General Xu Caihou, vice-chairman of the Central Military Commission of the Communist Party of China, who is on his US visit, exchanged notes with Gates for 75 minutes in Washington on relations between the two countries and two militaries. They reached consensus on many fronts. Xu's visit represented the highest-level visit by a Chinese military official since 2006. It was also a concrete sign of improving relations between the two militaries after China halted military-to-military dialogue with the US last year to protest a $6.5 billion arms sale to Taiwan. Xu said in Washington on Monday that US-Chinese military relations have improved since January's inauguration of President Barack Obama, who will visit China next month. At Tuesday's meeting, Xu reiterated long-standing "obstacles" to deepening ties with the U.S. military, a US official said. These included tensions over Taiwan. The Chinese general asked the US to abide by strictly the three joint statements the two countries signed and halt arms sales to the island. • Chinese, US military leaders vow to further co-op (28th October) Visiting Vice Chairman of China's Central Military Commission Xu Caihou and U.S. Secretary of Defense Robert Gates agreed here Tuesday to further the bilateral military relationship and cooperation in a stable and healthy way. During their meeting at the Pentagon, Xu told Gates that through joint efforts of both sides, a positive momentum has been maintained in the development of relations between the two great nations. In April, Chinese President Hu Jintao and his U.S. counterpart Barack Obama reached an important consensus at their meeting in London to jointly build a positive, cooperative and comprehensive relationship between the two nations for the 21st century, ushering in a new phase in their bilateral relations, he noted. They met again in New York in September, and fully endorsed the current direction of the development of China-U.S. relations, Xu said. A sound China-U.S. relationship, one of the most important bilateral relationships in the world, not only conforms to the fundamental interests of the two peoples, but is also
142
BPM- Weekly Report # 91 Zone 1-Asia
conducive to peace, stability and prosperity in the Asia-Pacific region and the world at large, said the Chinese general. The two countries, in the face of the complicated and fast-changing international situation, share broader common interests, and their relationship is becoming increasingly important in terms of strategic significance and global influence with a broad prospect for further growth. Xu said China is ready to work with the U.S. side to expand exchanges and further cooperation so as to push forward the bilateral relationship in a healthy and stable way. In general, the bilateral military relationship shows a positive momentum for development, Xu said. The two militaries have adopted a series of measures to put their relationship back on a normal track and move it forward, in accordance with the consensus reached by the top leaders of the two countries at their London meeting to improve and develop bilateral military ties, he said. Over the years, Xu noted, the Chinese military has adopted a positive approach toward expanding exchanges and cooperation with the U.S. military, in areas of high-level exchanges, defense consultations and dialogues, and academic education. The Chinese military has also expanded the positive aspects of its relationship with its U.S. counterpart by conducting joint sea rescue drills and cooperating on humanitarian issues, disaster relief and escorts for commercial ships. • Chinese vice premier visits Albania (29th October) Chinese vice Premier Zhang Dejiang arrived in Albania on Thursday for a three-day visit at the invitation of his Albanian counterpart, Ilir Meta. During his stay in Albania, Zhang will hold talks with Albanian President Bamir Topi, parliament Speaker Jozefina Topalli, Prime Minister Sali Berisha and deputy Prime Minister Meta. Zhang will make a speech at an economic forum attended by Chinese and Albanian entrepreneurs, and he will attend a reception party to celebrate the 60th anniversary of the establishment of diplomatic relations between China and Albania, which falls on Nov. 23. Zhang came to Albania from Ukraine, the first leg of his three-European-country tour. He will travel to Estonia after Albania. • Chinese vice premier arrives in Australia for official visit (29th October) Chinese Vice Premier Li Keqiang arrived here Thursday night to start a three-day official visit at the invitation of the Australian government. Upon his arrival at Sydney International Airport, Li said in a written statement that both China and Australia were major countries in the Asia-Pacific region. "We have extensive and important common interests in safeguarding and promoting peace, stability and prosperity in the region," said Li. He pointed out that, during the 37 years since the establishment of diplomatic ties, China-Australia relations had maintained a sound momentum of growth thanks to the concerted efforts of both sides. Remarkable achievements have been made in bilateral cooperation and exchanges in trade and other areas, bringing tangible benefits to the peoples of both countries, said Li.
143
BPM- Weekly Report # 91 Zone 1-Asia
He also said the purpose of his visit was to enhance mutual trust, deepen cooperation and work with the Australian side to seek further development of bilateral ties. "I look forward to having in-depth exchanges of views with Australian leaders on deepening China-Australian relations, international and regional issues of common concern, and to having extensive contacts with people of various sectors," the vice premier noted. China is ready to work with the Australian government and friends from all sectors and to continue to promote steady growth of the comprehensive cooperation between the two sides in the spirit of mutual respect and win-win progress, Li said. During his stay in Australia, Li will hold talks with Australian Prime Minister Kevin Rudd and other leaders. Apart from Sydney, he will also visit Canberra and Brisbane and meet with the state leaders of New South Wales and Queensland. In Sydney, Li will make a speech to local industrial and business leaders and attend the signing ceremony of a number of agreements on bilateral cooperation in the fields of forestry, education, training and telecommunications. • Chinese embassy in Iraq steps up security: FM (29th October) Chinese Foreign Ministry spokesman Ma Zhaoxu said here Thursday that the Chinese embassy in Iraq has beefed up security following the recent devastating suicide bombings in Baghdad. Two car bombs coordinately exploded in downtown Baghdad Sunday, claiming at least 155 lives and left over 500 others wounded. Some facilities of the Chinese embassy based in the Al Mansour Hotel were also damaged. Two Chinese nationals working in the hotel were injured. "China opposes terrorism in any form, and hopes that the Iraqi government and its people will overcome difficulties and realize national security, stability and development at an early date," Ma said at a regular press briefing. "We have asked the Chinese embassy, institutions and nationals in Iraq to stay alert and take safety measures," Ma said, noting that the Chinese leaders have conveyed sympathy to them. • Senior Chinese official meets Finnish minister of justice (29th October) Senior Chinese official Zhou Yongkang met on Wednesday with Finnish Minister of Justice Tuija Brax. Zhou, a member of the Standing Committee of the Communist Party of China (CPC) Central Committee Political Bureau, said today is a day worth of commemorating, because China and Finland established diplomatic ties on the same day 59 year ago. Finland is the first western country that signed bilateral trade agreement, and the cooperation between the two countries have withstood the test of time, Zhou said. He briefed the guest the social and judicial development in China in the past 60 years since the People's Republic of China has established. He said China still faces problems in the process of development such as expansion of
144
BPM- Weekly Report # 91 Zone 1-Asia
judicial
democracy
and
promotion
of
justice.
He said he is glad that the two ministers of justice have signed implementation plan for 2010 to 2012 on Tuesday, and he believes it will play a positive role for the judicial construction of the two countries. Brax said she has seen the great changes that China has made during her visit. Finland is willing to further cooperation with China in judicial field. • Senior Chinese official pledges to advance ties with South Africa (30th October) Senior Chinese official Zhou Yongkang Thursday pledged to advance the strategic partnership with South Africa. Zhou, a member of the Standing Committee of the Communist Party of China (CPC) Central Committee Political Bureau, made the remarks when meeting with Gwede Mantashe, General Secretary of the African National Congress of South Africa (ANC), the ruling party in the country. Hailing the remarkable progress made by China-South Africa cooperation in various sectors, Zhou said the two nations enjoyed increasing political mutual trust. To deal with issues of education, medical treatment, rural development, anti-corruption, fighting against crime and obtaining employment was an important task for both China and South Africa, the two developing nations, Zhou said. "We value the ties with South Africa, and will increase cooperation between us to benefit the two peoples," he noted. Zhou applauded African nations' firm support to China on many important issues, saying that China and Africa were good brothers, friends and partners. China would continue offering help within capacity to Africa, and make contribution to Africa's development, he said. "We will expand cooperation with Africa to achieve win-win development," he noted. Mantashe said the ANC hoped to learn from the CPC's experience and efforts in promoting social and economic progress. He also hoped China would provide more support to the development of South Africa and other African countries. Mantashe and his delegation were here on a visit to China from Oct. 28 to 31. • Canada looks to renew ties with China (30th October) Canada's Prime Minister Stephen Harper will make his first visit to China since taking office in 2006, aiming to not only boost trade but repair a strained relationship.
145
BPM- Weekly Report # 91 Zone 1-Asia
Harper, leader of his nation's Conservatives party, will be in China from Dec 2-6, a trip that former Canadian prime minister Jean Chretien, a Liberal, said is "better late than never". Foreign experts noted that Harper's rationale to visit China is based on the global economic recession. "Canada is committed to a strong relationship with China that reflects our mutual respect and the need for practical cooperation," Harper said in a statement. Trade has been developing between the two nations recently. Oil producer PetroChina agreed in August to purchase a 60-percent stake in two oil sands projects in western Canada for $1.7 billion. The MacKay River and Dover oil sands projects owned by private Athabasca Oil Sands Corp are located in the northeastern part of the Alberta province - Harper's base of support. Trade volume between China and Canada reached $22.9 billion, an increase of 2.9 percent, during the first half year of 2009. China's Foreign Ministry spokesman Ma Zhaoxu yesterday confirmed Harper's visit but would not elaborate further. Paul Martin, Harper's predecessor, was the last Canadian prime minister who visited China. Martin stayed in China for three days in early 2005 after Premier Wen Jiabao's trip to the Canadian capital of Ottawa in 2003. Relations between the two countries had been strained by fierce criticism in Canada of China's human rights stance since Harper's party came to power in 2006. Harper, who was absent from 2008 Olympic Games in Beijing, met with the Dalai Lama in October last year in what the Canadian government described then as "historic." China's Ministry of Foreign Affairs said at that time the meeting "hurt the feelings of the Chinese people and severely undermined Sino-Canadian relations". Canada, however, has always valued "its important bilateral relationship with China," according to the prime minister's spokesman Dimitri Soudas. He pointed to more than 18 Canadian ministerial visits to China in the past five years, AFP reported yesterday. But Chretien noted that he visited China "eight or nine times" in the three years after he was elected prime minister in 1993. "Our foreign policy has changed a lot," said Chretien, who stayed in office until 2003. "We have lost a lot of ground in China and that is not good." A Chinese analyst said bilateral ties have been inconsistent as exchanges among officials between both countries have been inadequate. Wang Honggang, from the China Institutes of Contemporary International Relations, said Canada's domestic political climate has shifted since Harper's Conservatives party took office. Wang said the party has played up China's stance on human rights, which he said has "negatively influenced diplomatic relations." Next year, Canada will celebrate 40 years of diplomatic ties with China, its third largest export market after the United States and the UK. Harper's trip also coincides with the 100th anniversary of the establishment of a trade commissioner service office in Shanghai. •
High-level talks warm up Obama's visit (30th October)
146
BPM- Weekly Report # 91 Zone 1-Asia
Sino-U.S. ties have been warmed up for U.S. President Barack Obama's upcoming China visit by frequent contacts between high-level officials from both sides, Chinese experts said Thursday. The 20th meeting of China-U.S. Joint Commission on Commerce and Trade (JCCT) was officially convened on Thursday morning in China's eastern city of Hangzhou. This year's JCCT talks, highlighted by U.S. Commerce Secretary Gary Locke, Trade Representative Ron Kirk and Agriculture Secretary Tom Vilsack, were widely seen as part of preparations for the presidential summit next month. "Today's JCCT meeting laid a solid groundwork and made full preparations for President Obama's visit in two weeks, which will help build the positive, cooperative and comprehensive China-U.S. relations toward the 21st century," China's Minister of Commerce Chen Deming said at the end of talks. In the meantime, Xu Caihou, vice chairman of China's Central Military Commission, was paying his first visit to the United States under the Obama administration. During his talks with U.S. Secretary of Defense Robert Gates, Xu and Gates explored ways to further military-to-military cooperation and reached agreement on seven points, which included Gates' visit to China in 2010 and mutual visits of warships. The agreement on conducting joint maritime searches and rescue exercises has already had the embryonic form of crisis management mechanism, said Ding Xinghao, president of the Shanghai Association of American Studies. During the 11-day visit, the Chinese general was also invited to visit some sensitive military sites, including the Strategic Command Headquarter,which was in charge of nuclear weapons and cyber war. Xu's visits to the sensitive military sites showed the U.S. military's willingness to promote mutual trust with the Chinese military, said Fu Mengzi, a researcher with the China Institute of Contemporary International Relations. Since the Obama administration took office, Sino-U.S. relations have witnessed a smooth transition and maintained a good momentum of development. In June 2009, the defense ministries of China and the United States held the 10th defense consultation. In July, the two countries held their first round strategic and economic dialogue. In August, the two militaries held the maritime military security consultation. In addition, Obama issued a "presidential determination" On September 29 that shifted authority for approving sales to China of missile and space technology from the White House to the Commerce Department, a move viewed by experts as Washington's delivery of goodwill to Beijing.
147
BPM- Weekly Report # 91 Zone 1-Asia
It was also noteworthy that U.S. Deputy Secretary of State James B. Steinberg proposed a new term to describe U.S.-China relations in his keynote address entitled "Administration's Vision of the U.S.-China Relationship" at the Center for a New American Security in Washington on September 24. "Strategic reassurance", as Steinberg noted, means that "just as we and our allies must make clear that we are prepared to welcome China's 'arrival'...China 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." This term captured the crux of Sino-U.S. ties, said Niu Xinchun, vice director of the Center for American Studies at the China Institute of Contemporary International Relations. "It is aimed at realizing the strategic mutual trust between the two countries." The foundation for the sustained and stable development of bilateral ties lies in mutual trust, he said, but trade frictions between the two nations show that mutual trust still needs to be strengthened. Obama announced in September to impose 35 percent punitive tariffs on all car and light truck tires from China for three years. Just on Tuesday, the U.S. Department of Commerce announced preliminary determination that intended to impose a tariff up to 12 percent on the steel grafting and steel strand imported from China, valued 269 million U.S. dollars. In addition, China and the United States still have differences on some issues concerning China's core interests, such as U.S. arms sales to Taiwan and Tibet-related issues. Although both sides have the willingness to enhance mutual trust, it is still difficult for them to fulfill the goal, said Fu Mengzi, adding it needs sustained efforts from both sides. "Sino-U.S. relations are now standing at a new historical starting point," said Chinese Vice Premier Wang Qishan at the opening ceremony of the 20th JCCT meeting. "President Obama's first China visit will surely provide new opportunities for bilateral cooperation." • Hu invites DPRK leader to visit China: KCNA (30th October) President Hu Jintao has invited Democratic People's Republic of Korea (DPRK) top leader Kim Jong-il to visit China. The invitation, made to a visiting official of the DPRK's ruling Workers' Party, Choe Thae-bok, came in a meeting on Wednesday where the two countries pledged to strengthen ties as they celebrate 60 years of alliance. "At the meeting, comrade Hu Jintao asked Choe Thae-bok to convey his invitation to General Secretary Kim Jong-il to visit China at a time convenient to him," the DPRK's official KCNA news agency said on Thursday.
148
BPM- Weekly Report # 91 Zone 1-Asia
• Visit marks end of tension (30th October) Vice-Premier Li Keqiang arrived in Australia last night for a three-day visit that marks the end of diplomatic tension between Canberra and Beijing. "We have extensive and important common interests in safeguarding and promoting peace, stability and prosperity in the region," said Li. Relations soured in June after a failed bid by China's State-owned metals firm Chinalco to acquire a stake in Anglo-Australian Rio Tinto. The subsequent arrest in China of an Australian Rio Tinto executive over alleged business wrongdoing widened the rift. China then cancelled a high-level diplomatic visit to Australia after Canberra granted a visa to Rebiya Kadeer, the alleged mastermind behind the July 5 riots in Urumqi. But China's ambassador to Australia, Zhang Junsai, said both countries realize they must work together. "The Chinese government sees it from a strategic perspective. It is very comprehensive. It is very solid," he told The Australian newspaper yesterday. Australia's foreign minister this week also declared an end to Australia-China tension, saying it was "business as usual". • Chinese vice-premier meets Australian PM on ties (31st October) Visiting Chinese Vice Premier Li Keqiang met here Friday with Australian Prime Minister Kevin Rudd to discuss the development of relations between their two countries and issues of common concern. At the meeting, Li said that a healthy and stable China-Australia relationship was beneficial to the core interests of the two peoples and would therefore help promote stability and prosperity in the region and the world as a whole. As two important nations in the Asia-Pacific region, China and Australia shared a wide range of common interests and solid ground for cooperation, either in maintaining regional peace and stability or in driving regional and global economic growth, and dealing with international challenges, Li said. Stressing dialogue, coordination and cooperation were crucial for bilateral relations, the vice premier said both nations need to adhere to a strategic and long-term perspective to deal with bilateral ties. Only by joint efforts could the two sides achieve common progress, he said. Noting that China and Australia have complementary economies, Li said China hopes Australia will always stick to an open and non-discriminatory policy towards Chinese investment in Australia. Furthermore, Li said, the two governments need to forge a friendly policy environment for business from both nations to conduct mutually beneficial cooperation. On international cooperation, Li said China seeks to continue communication and coordination with Australia within multilateral cooperation mechanisms such as the United Nations, G20, APEC, East Asia Summit and the Pacific Islands Forum. Speaking at the meeting, Rudd congratulated China on the 60th anniversary of the founding of the People's Republic of China and for what the Chinese people has achieved in the past 60 years. Rudd said he is optimistic about the future of the Australian-Chinese relationship and willing to view those relations in the long run.
149
BPM- Weekly Report # 91 Zone 1-Asia
China is very important to Australia's future and Australia is also very important to China's future, the prime minister said, adding that the two sides should bring their relations to a new high based on the solid foundation achieved in the past. Rudd said he and Li have agreed to develop more contacts at a government level in the future. Rudd said Australia, which understands China's long-term demand of resources and energy, is willing to be a strategic partner with China in this regard. He also reiterated that Australia adopted an open and nondiscriminatory policy towards investments from China. • China, Australia agree to enhance practical co-op (31st October) China and Australia have agreed to strengthen their practical cooperation for mutually beneficial outcomes in a joint statement released Friday. Their stronger practical cooperation "serves the fundamental interests of the two countries and two peoples and contributes to peace, stability and prosperity in the AsiaPacific region and the world at large," said the statement. The two sides would enhance their cooperation at all levels to advance their ongoing comprehensive relationship, according to the joint statement released during a visit by Chinese Vice Premier Li Keqiang. Noting that their different national conditions could lead to differences of one type or another, China and Australia said they would "respect and take into full consideration the core interests and major concerns of each other." The two sides expressed a readiness to take concrete measures to safeguard the overall interests of the sound and steady growth of China-Australia relations. The Australian side reiterated its one-China position on the Taiwan issue as contained in the Joint Communique of December 21, 1972, establishing diplomatic relations between the two countries. Australia respected China's sovereignty and territorial integrity, also regarding Tibet and Xinjiang, said the joint statement. With a combined GDP of more than $5 trillion, China and Australia believed it served the common interests of both sides to advance economic, trade and investment cooperation. The two sides also reaffirmed their commitment to open trade and investment policies, to oppose protectionism and to support the early conclusion of the WTO Doha Round. China and Australia agreed to work together in a positive and practical way to conclude negotiations on a bilateral free trade agreement. "The two sides agreed that China and Australia share important common interests in promoting peace, stability and development in the Asia-Pacific region," said the statement. They would continue to strengthen communication and coordination in the United Nations, G20, the Asia-Pacific Economic Cooperation (APEC), the East Asia Summit, the Pacific Islands Forum and other multilateral mechanisms and institutions, it said. They would also work closely in battling the financial crisis, climate change and communicable diseases and preventing proliferation of weapons of mass destruction and transnational crime, it added.
150
BPM- Weekly Report # 91 Zone 1-Asia
China welcomed Australia's Asia-Pacific community initiative and would send a senior Chinese delegation to the international one-and-a-half track conference in Sydney in December. China also welcomed the membership of Australia in the Asia-Europe Meeting (ASEM) in 2010. The two sides agreed to expand friendly exchanges and cooperation between local governments and promote people-to-people links in such fields as education, culture, sports, tourism and the media. They looked forward to a successful Shanghai Expo and to endorsing plans for the Year of Australian Culture in China in 2010-11 and the Year of Chinese Culture in Australia in 2011-12. Li arrived in Australia Thursday night on a three-day official visit. He has met Prime Minister Kevin Rudd and held talks with Deputy Prime Minister Julia Gillard. • U.S. House honors ancient Chinese philosopher Confucius (31st October) The U.S. House of Representatives has adopted a resolution to honor the 2,560th anniversary of the birth of ancient Chinese philosopher Confucius. The resolution, passed by the House overwhelmingly Wednesday, recognized the philosopher's "invaluable contributions to philosophy and social and political thought." The bill was introduced on Sept. 29, one day after Confucius' birthday, by Al Green, a Democratic Congressman from Texas, along with 40 other lawmakers. Green said on the House floor that the resolution celebrated the "personal introspection" of Confucius and his "respect of social relationships, personal and governmental morality." "He preached that politicians must always present truth and morality. He taught the philosophy of reciprocity, never impose upon others what you would not choose for yourself," said Green. The resolution said Confucius, "who is one of the greatest thinkers, teachers, and social philosophers in history, developed a philosophy that has deeply influenced, and continues to influence, the social and political thought of countries around the world." It also maintained that "Confucius counseled introspection, self-cultivation, sincerity, and the observance of respect within social relationships as a means of achieving justice and attaining morality in personal and public life, reflecting a moral fiber of the highest degree."
Economic front • Trade Ministers of China, Japan, South Korea oppose protectionism (25th October)
151
BPM- Weekly Report # 91 Zone 1-Asia
Economic and Trade Ministers of China, Japan and South Korea vowed here Sunday to oppose trade protectionism in all forms. "We will oppose trade protectionism in all forms, uphold a fair, free and open global trading and investment system," said a joint statement issued after the ministers' meeting. "We are determined to seek an ambitious and balanced conclusion to the Doha Development Round in 2010, consistent with its mandate, based on the progress already made, including with regard to modalities," added the Statement. The ministers also shared the view on the importance of a trilateral investment framework which will be instrumental for further strengthening the economic partnership among the three countries. "In this respect, we share the view to reach a substantive agreement on the Trilateral Investment Agreement negotiations in early 2010," said the Statement. • WISCO posts 75.79% fall in Q3 net profit(26th October) The Wuhan Iron and Steel Company Ltd (WISCO), the listed arm of China's Wuhan Iron and Steel (Group) Corp, posted a decline of 75.79 percent in net profit in the third quarter this year because of falling sales. The company's net profit reached 546.56 million yuan ($80.02 million) during the JulySeptember period, and its net profit in the first nine months amounted to 1.05 billion yuan, it said in a report to the Shanghai Stock Exchange on Sunday. Its net profit in the January-September period last year was 7.17 billion yuan. The WISCO forecast a more than 50 percent decrease in its 2009 net profit as uncertainties remain in domestic steel industry amid an unsound world economic recovery. The company's business revenue was 37.4 billion yuan in the first nine months, down from 58.13 billion yuan in the same period last year. • Platinum jewelry demand is rising(26th October) Demand for platinum jewelry has been remarkably strong this year following a prosperous 2008. Higher sales are being fueled by holiday-related jewelry sales and for bridal rings, which were helped by 2009 being considered an auspicious year for getting married and an increasing desire for platinum. "Platinum jewelry sales in China increased by more than 400,000 ounces, compared to the same period in 2008, largely in response to lower platinum prices, but also given the reduced premium over gold," said Neville Nicolau, chief executive of Anglo Platinum, the world's largest producer of platinum. "This market response highlights the strength of platinum jewelry branding and the different nature of Chinese platinum jewelry demands, as economic conditions continue to depress jewelry sales in most Western markets. The Chinese market is unsaturated, and the number of retail outlets continues to grow," Nicolau added.
152
BPM- Weekly Report # 91 Zone 1-Asia
The strong growth in platinum jewelry demand is supported by statistics published by the Shanghai Gold Exchange, which show that the total volume of platinum sold in the first half of the year was up 81 percent over the same period last year. The majority of the sales were in the jewelry category. Opportunity for growth "Platinum prices have held steady to date, providing an opportunity for further growth in platinum jewelry demand," said James Courage, CEO of Platinum Guild International (PGI), an organization that promotes platinum jewelry sales. "Increased sales have been helped additionally by new store openings and manufacturers holding larger working stocks to meet increased demand," Courage said. The second half of 2009 is expected to deliver higher levels of spending, including increases in gift jewelry and bridal jewelry purchases. Chinese people see 2009 as an auspicious year for marriage, since the number nine implies "forever love". It is estimated that more than 10 million couples tie the knot each year in China. According to China Wedding Registry, 10.5 million couples registered their marriage in 2008, a 10.6 percent increase in year-on-year growth. It is estimated that marriages will see 6 percent growth to 11.5 million marriages in 2009, and that marriages will number 11.82 million in 2010. Grace Man, director of PGI China, citing the booming wedding market and stable platinum prices, is optimistic about year-end prospects. "These factors, together with the focus of PGI and the upbeat confidence of the industry, makes us confident of the future development of the platinum jewelry industry in China," Man said. Since 2000, China has been the world's largest consumer market for platinum jewelry. Sales increases were reported to be strong in both first- and second-tier cities, according to the Shanghai Gold Exchange. Festive occasions have become major drivers of sales for consumer products, and jewelry is no exception. A recent market survey conducted by PGI, targeting 93 sales outlets in 32 cities, showed sales of plain platinum jewelry increased by 27 percent over the May Day holiday. Platinum also is enjoying more prestige in China. A recent survey by the research firm Millward Brown-ACSR questioned 1,000 highincome females ages 20 to 40 in Beijing, Shanghai, Guangzhou, Chengdu and Shenyang. According to the survey's results, 40 percent of the women listed platinum as a top choice for jewelry, and more than half said it was their favorite precious metal. This year, PGI promoted platinum sales by inviting Chinese movie star Zhang Ziyi to be its brand ambassador in late April. PGI also reported developing a comprehensive merchandising program targeting retailers around the country this year. • Net profit of Vanke up 30% in first nine months(26th October) China Vanke, the country's largest property developer by market value, said Sunday that it raked in a net profit of 2.96 billion yuan ($433.38 million) in the first three quarters of this year, up 29.9 percent year-on-year.
153
BPM- Weekly Report # 91 Zone 1-Asia
The company's business revenue in the first three quarters surged 31.1 percent year-onyear to 29.54 billion yuan, it said in the quarterly report to the Shenzhen Stock Exchange. The Shenzhen-based company sold 5.1 million sq m of housing nationwide during the January-September period, up 26.8 percent over the same period last year in terms of total sales space. The company's housing sales totaled 5.57 million sq m for the whole of 2008, down 9.2 percent year-on-year amid a stagnant property market. Its net profit declined 16.7 percent in 2008 from the previous year. China's property market has seen price and sale hikes after February this year boosted by rising demand. In the third quarter, the company posted a net profit of 430 million yuan, more than doubled compared with the same period last year. • Mergers drop number of centrally-administered SOEs to 132(26th October) As a result of three mergers, the number of China's centrally-administered State-owned Enterprises (SOEs) has decreased to 132 from 135, according to an announcement posted today on the website of the State-owned Assets Supervision and Administration Commission of State Council, China's state property regulator. The Changsha Research Institute of Mining and Metallurgy and the Luzhong Metallurgical Mining Group were bought by another SOE, the China Minmetals Corporation. And the China Xinxing Corporation (Group) was bought by the China General Technology Holding,Limited. • Mainland, Taiwan to bridge Straits with economic pact(26th October) The Chinese mainland and Taiwan yesterday agreed to start formal talks on signing an economic cooperation agreement by the end of this year. Wang Yi, director of the mainland's Taiwan Affairs Office, said both could exchange views on the deal in talks between the mainland's Association for Relations Across the Taiwan Straits (ARATS) and Taiwan's Straits Exchange Foundation (SEF) "if they consider it necessary". The comments were made during a two-day cross-Straits symposium in Chengdu, capital of Sichuan province, which opened yesterday. ARATS-SEF talks are the only semi-official channel for both sides to negotiate over cross-Straits affairs and directly affect policy. They will hold their fourth round of talks since last year in Taiwan's Taichung in mid- or late December. Wang said the mainland is also willing to "further interact with Taiwan to solve problems concerning cross-Straits economic exchanges and push the economic relations to a new level". San Gee, "vice-minister" of Taiwan's "Council for Economic Planning and Development", replied that Taiwan would make "positive responses" to the mainland's offers. The Economic Cooperation Framework Agreement (ECFA) proposed by Taiwan leader Ma Ying-jeou in February, covers tax reductions, market access, investment and trade. It is aimed at giving Taiwan "fair opportunity" after an economic cooperation agreement between China and the Association of Southeast Asian Nations takes effect next year.
154
BPM- Weekly Report # 91 Zone 1-Asia
Experts are optimistic about the negotiations and said the agreement is very likely to be signed in the first half of next year. "It should be in the first half of 2010 since later will be the elections for special municipalities heads, and the opposition Democratic Progressive Party will try to draw attention by setting obstacles and repeating its stance that the ECFA hurts Taiwan's 'sovereignty'," said Wu Nengyuan, director of the institute of Taiwan studies at the Fujian Academy of Social Sciences. Taiwan media reported people were concerned the mainland would put off negotiations over the deal to express dissatisfaction over the Dalai Lama's recent visit to Taiwan. "Wang's speech has made the mainland's stand clear. Taiwan should do their homework to cope with the opposition on the island," Wu said. Li Fei, a professor at Xiamen University, agreed and said: "It could be signed around April, during the fifth round of ARATS-SEF talks." The ECFA will create a win-win situation, with mainland investment and products gaining easier access to the island and both sides realizing complementation, he said. "This will mark the beginning of cross-Straits economic integration, and will pave the way for political integration," Li added. Cross-Straits ties have improved markedly since last May when Ma took office, with the establishing of direct mail, transport and trade links soon after. In July, mainland companies were approved to invest in Taiwan, while a dozen firms have already opened branches on the island. • Expert sees big health market in China (26th October) China, though with increasing number of obese people, has the greatest opportunity to lead the wellness industry in the world, said Paul Zane Pilzer, the wellness theory founder and former economic adviser to two US presidents. "The greatest number of overweight and obese people today live in China. So the greatest opportunity the wellness industry will stand to help people anywhere in the world is in China," the retired New York University professor said at his Park City home, Utah, in an exclusive interview with Xinhua. Professor Pilzer is going to attend a high-level forum sponsored by the Chinese National Development and Reform Commission in Beijing in early December. Government offcials, entrepreneurs, CEOs and scholars from many countries will exchange their views on the latest developments in the nutritional industry, and put forward advices to help China keep up with the advance of the wellness revolution around the world. He will at the meeting deliver a lecture promoting his wellness theory, and this is something he feels very excited about at the moment. "My wife and I are very excited to be coming to China on December 8. I am very excited because China has one of my books in 25 foreign languages," he said. Wellness Revolution, his first volume dealing with a peculiar economic and social phonomenon he calls wellness, was translated into Chinese since it was first published in 2002. Five years later, an updated version was brought to the press. The former White House economic adviser noted that China not only had the need for wellness, but also had the fastest growing amount of obesity and overweight. "The biggest problem today is overweight and obesity," he said.
155
BPM- Weekly Report # 91 Zone 1-Asia
In a report released in late 2006, the World Health Organization said globalism and urbanism had led to the change of the people's traditional habits. It called upon the Chinese government to check the tendency with vigorous and strong-handed measures. "China has the largest population of overweight people in the world," Professor Pilzer pointed out. The Warton Business School graduate is himself an avid practitioner of his sayings. He has kept mountain biking for many years, and managed to lose weight of 20 pounds recently. He is of medium height, energetic, healthy, slim and with sharp eyes. He also has his trademark skinhead. In his nine books discussing wellness idea and industry, Professor Pilzer predicted that wellness, or health care, would become the star of future industry, which is founded on the breakthroughs of biological and bio-chemical technologies in the aftermath of thriving of personal computers and web industries. One of the main points of the theory is to help people prevent themselves from being sick by ways of right choice of food, right physical exercise and right intake of calories. Unlike the traditional medical system that only cures the illness after people get sick, the wellness industry puts emphasis upon the prevention process, so as to help people stay healthy and slow down the aging process. "China is the first country whose medical system started to treat people before they get sick. And traditional Chinese medicine uses nutrition in your mouth to maintain your health. "China has the greatest opportunity to correct the problems of overweigh and obesity, the big part of wellness. China has the biggest market in the world for wellness products and services. Some of the people attending (the forum) are going to learn about China, Chinese people and China's market. China has the greatest traditional wellness," he said. When noting that China has shown to the world that it can study any country in the world, Professor Pilzer said: "I am hoping China will embrace the wellness not just for the Chinese people, but to use the genius of Chinese engineering and science and invention." "China has the opportunity to lead the world by establishing manufacturing, biological and pharmaceutical standards for wellness products," he added. • E. Asia, ASEAN cooperate for common good(26th October) Sixteen countries across Asia and the Pacific are cozying up to find their way out of the economic recession together. At a weekend meeting of the Association of Southeast Asian Nations (ASEAN), Premier Wen Jiabao said China said it would provide $15 billion in credit to other ASEAN countries and 270 million yuan ($40 million) in special aid to less developed members of the group. China announced in April it would set up a $10-billion China-ASEAN fund for investment cooperation to support infrastructure development in the region. Leaders also said they would jointly fight other major challenges such as global warming, food and energy crises, and disaster relief. Analysts say deepening regionalization would empower Asia and Pacific countries at a critical time when the economic recession has yet to end.
156
BPM- Weekly Report # 91 Zone 1-Asia
The China-ASEAN Free Trade Area, the biggest of its kind for developing countries, will be effective next January. But analysts warn that the countries are still too widely divided to form any true "community". In addition to China, state or government leaders from the 10 ASEAN countries, plus Japan, South Korea, India, Australia and New Zealand also attended the fourth East Asian summit over the weekend. Countries in the region should, "with a spirit of openness and tolerance and in a step-bystep manner, work for consensus and move toward the long-term goal of establishing an East Asian community, while having due respect for diversity", Wen told leaders at the East Asia summit yesterday. Ten documents, ranging from deepening cooperation in disaster relief to intellectual property rights protection, were signed yesterday. Thai Prime Minister Abhisit Vejjajiva, the host and current chair of the ASEAN presidency, urged ASEAN countries to get closer to become more influential in the international community. "Over the past year we have proven that ASEAN continues to move forward. We have risen to the challenges of the times," Abhisit told a press conference yesterday, noting the grouping is ambitious in creating a community like the European Union by 2015 among its 10 member states. Similarly, Japan and Australia also pushed competing visions for forming an East Asian bloc. Japanese Prime Minister Yukio Hatoyama, who during his campaign promised to create a more equal partnership with the United States, said he wanted to promote Asian cooperation in free trade agreements, finance, currency, energy, environment and disaster relief. The purpose of Australian Prime Minister Kevin Rudd's Asia-Pacific Community would be to "cooperate on economic, political and security matters and dispel notions that a conflict in Asia may be inevitable," according to Bloomberg News. "What I detect across the region is an openness to a discussion about how we evolve our regional architecture into the future," Rudd was quoted as saying by AAP news agency. Wide divisions remain Experts said the economic turmoil has pushed Asian and Pacific countries closer in order to face global challenges, but noted that countries in the region are still widely divided. "ASEAN's regional integration is going on, but the countries have too many differences, ranging from political systems and culture to religion. That makes it more difficult for us to set up a EU-style group in the region," said Su Hao, director of the Center for Strategic and Conflict Management with the China Foreign Affairs University. Kavi Chongkittavorn, former assistant to the ASEAN secretary-general, said the group is divided along "ideological and generational lines" that have left it polarized on issues like human rights, political intervention and territorial disputes. "They have to catch up to new political concepts, or the whole thing will crumble," Kavi said. Since opening on Friday, the 15th ASEAN summit saw disagreements among member nations that overshadowed the meeting's theme - enhancing connectivity - and raised questions on how unified the bloc truly is.
157
BPM- Weekly Report # 91 Zone 1-Asia
Poor attendance marred the start of the meeting, when leaders from some of the largest Southeast Asian countries, including Indonesia, Malaysia and the Philippines, did not show up for the opening ceremony on Friday, citing reasons ranging from weather disturbances to domestic obligations. Despite its goal of creating a community, ASEAN's main challenge in recent months has been to dampen long-running conflicts and disagreements. Relations between Thailand and Cambodia have worsened over a border dispute near an ancient hilltop temple, Preah Vihear. Over the past year, troops in the border area have skirmished several times, leaving seven people dead, according to the International Herald Tribune. Protesters on Saturday threatened to surround the Cambodian Embassy in Bangkok next month unless Cambodian Prime Minister Hun Sen withdraws his troops and removes the Cambodian community from the temple. Soon after his arrival into Hua Hin, Hun Sen was involved in verbal saber rattling with Abhisit over ousted former Thai prime minister Thaksin Shinawatra. Hun Sen said on Friday that Thaksin would be allowed to stay in Cambodia and may even serve as his economic adviser. Abhisit responded, saying Hun Sen should "help the meeting reach its goals", but "don't allow anybody to use you as a pawn". "Establishing an East Asia community will be a long-term goal. But at least the countries have realized the need to cooperate and have taken concrete steps such as setting up a free trade area. We must remain patient," Su Hao said. • Competition heats up in Chinese instant noodle market (26th October) In the competitive instant noodle market dominated by Taiwan's Master Kong and UniPresident Enterprises Corp, it might take some magic for smaller Asian rivals to gain a larger market share. Perhaps that's why Huafeng recently hired famed magician Liu Qian as its brand spokesman, hoping to boost sales in the country's vast second- and third-tier cities. However, results won't happen overnight, said Irene Cai, a senior manager with management consulting firm AT Kearney. Master Kong and Uni-President, along with Hebei Hualong and Sichuan-based Bai Xiang, control more than 60 percent of the instant noodle market. "For a company without a good distribution network and some brand awareness, it will be a hard job to compete with Master Kong and Uni-President," Cai said. Market research firm Euromonitor International reported that Ting Hsin International Group, which owns Master Kong, led in domestic market share with 27.2 percent in 2007, followed by Uni-Present with 7 percent. Huafeng, with a 1.3 percent share, was ranked ninth among leading instant noodle makers. But a fresh new management team has been put in place at Huafeng, which suffered losses from the end of the 1990s through 2004. "We have adopted a strategy of 'encircle the cities from the rural areas' to gradually improve the market share of our instant noodles in difficult times," said Li Dong, group managing director of Asia Food and Properties Ltd (AFP). Huafeng is the core food category of Singapore-based AFP, and Li was appointed to head AFP's China business operations in 2004. 158
BPM- Weekly Report # 91 Zone 1-Asia
"We will consider making inroads into the country's important first-tier cities like Shanghai and Beijing. But before that, we have to establish a solid stance in smaller cities," Li said. Market conditions in China's first-tier cities have been extremely competitive, dominated by top brands that created barriers to new entries, Li said. "We decided to start our foray in the second- and third-tier cities, where we deemed it more cost effective from a return-on-investment (ROI) perspective" Li said. Li said about 60 percent of Huafeng's business is concentrated in North China, and added that more than 70 percent of its business will continue to focus on that market. Recession-resistant While the global financial crisis has hit some industries hard, the instant noodle sector is apparently recession-resistant. "The sales drop in fast food products is not as steep as that of durables, so the instant noodle industry may not be seriously affected by the global financial crisis," said AT Kearney's Cai. And China is among the largest consumers of the food. A Euromonitor study showed that the consumption of instant noodles has increased significantly since 2003. The industry has maintained a positive growth rate for five consecutive years, with 69.5 percent sales growth to 59 billion yuan in 2008 - up from 34.8 billion yuan in 2003. Sales of Huafeng's instant noodles increased 70 percent from $89.28 million in 2006 to $151.92 million last year, according to the company's 2008 financial report. "Despite the economic downturn, our sales in the first quarter of 2009 increased by 10 percent year-on-year, and we expect to maintain double-digit growth for the whole of 2009," Li said. Li said the company's production costs also are lower this year due to dropping prices for raw materials such as flour and vegetable oil. Diversifying the product range and focusing on niche markets also helped Huafeng maintain its profitability, Li said. Outside the box Li said the company realized the traditional instant noodle market was approaching saturation, so the company chose a "think outside the box" strategy. "We invented crispy snack noodles and opened up a brand new niche market where we have a commanding lead over the competition," Li said. Li said the company's crispy snack noodles carved out a 45 percent market share and remains a leader in this category. However, AT Kearney's Cai said the lower price point for such products means a 3 percent to 5 percent profit margin -- lower than the profit margin for higher-end instant noodles. "The high market concentration is the main factor that may constrain the expansion of smaller manufacturers, unless some products with unique features can be developed," Cai said. • Aussies say to welcome Chinese investment for long (26th October) Australian Foreign Minister Stephen Smith said here Monday Australia maintains a longstanding, consistent, open and welcoming stance towards foreign investment, from wherever it comes, including from China.
159
BPM- Weekly Report # 91 Zone 1-Asia
In a speech addressed to Australia National University's China Institute on Monday, Smith said Australia and China share strong and growing economic complementarities. "Historically, Australia has been an importer of capital, as well as people. Our future growth relies on continued openness to foreign investment, and Chinese investment, like any investment from any other country, strengthens the Australian economy and supports Australian jobs." He said since November 2007, the Australian Government has approved over 100 investment proposals from China to acquire Australian businesses. The current Government has approved Chinese investment of over 38 billion dollars ($35 billion). "Investment proposals from China's state owned enterprises are subject to the review processes and are judged on national interest considerations," he said, adding this is in accordance with Australia's foreign investment legislative and regulatory requirements. In responding to Xinhua's question whether there would be a policy particularly guiding Chinese investment into Australia in near future, Smith said Australia's "Foreign investment legislative regime is not discriminatory, we don't identify capital on the basis of which country the investment comes from." He emphasizes Australia welcomes China's investment. At the end of 2008, China was ranked 15th among Australia's largest investors, behind Britain, the United States, Japan, Singapore, Switzerland, Germany, the Netherlands, France and New Zealand. In 2009 China ranks beside Japan as a most substantial export market and the two combined account for 40 percent of Australia's exports, according to Smith. • China triples investment abroad in Q3 (27th October) Chinese investment abroad surged 190.4 percent year on year to US$20.47 billion in the third quarter, the Ministry of Commerce said Tuesday in a statement on its website. The first nine months saw the overseas investment rise 0.5 percent year on year to US$32.87 billion in 1,612 companies in 112 countries and regions, the statement said. The figures excluded investments by financial institutions. The ministry attributed the investment growth to policies the ministry put into place this year to encourage domestic companies to invest overseas amid the global economic downturn. The policies included measures to ease procedures for investment approval, support with financial services and credit, overseas investment guidance, and arranged trade and investment delegations to Europe and North and South America. • Netbook gravy train starts to slow as euphoria fades(27th October) Netbook shipments have started cooling after witnessing an explosive surge since late last year as customers started realizing its limits and looking for portable and affordable alternatives for full-size laptops. According to Xia Li, vice-president of Lenovo Group, growth in netbook sales during the second half of this year has slowed as consumers have started becoming more rational in their purchases.
160
BPM- Weekly Report # 91 Zone 1-Asia
"Netbook sales surged in the past as consumers bought the product as gifts or as first laptops," he said. But with consumers starting to realize the limits of the products, the growth has started to slow, Xia said. He expected the growth would decline back to the industry average of accounting for 20 percent of the overall PC market in China. Designed to perform basic tasks like word processing, netbooks have received a good response from consumers all over the world. Ever since Taiwanese firm Asus launched its first netbook Eee PC in 2007, the product has became the market engine of the world's PC industry that was severely impacted by the economic slowdown. According to figures from research firm DisplaySearch, global revenue from netbook sales reached $3.07 billion in the second quarter of this year, an increase of 264 percent compared with the same period last year. In China, where telecom operators have pushed the product to promote 3G services, sales of netbooks grew substantially in the first half of this year. It was reported that around 200,000 to 300,000 netbooks are sold in China every month. Dave Chan, vice-president of Hewlett-Packard China, said the fever for netbooks in the world's second largest PC market is cooling. "Netbooks have design defects and are not suited for everyone," Chan said. According to him, the product sacrifices too much in performance and lacks long-term appeal. Simon Ye, an analyst from research firm Gartner, said apart from the limited features netbooks are not so popular with computer makers as they offer lower sales profit margins compared with full-size laptops. According to DisplaySearch, the average selling price (ASP) for netbooks has dropped almost 30 percent year on year in the second quarter, compared to a 10-percent decline for notebooks. The research firm said that despite rising shipments, sales of netbooks are dragging revenue for the overall laptop market. Ye said many computer makers are also re-evaluating their netbook strategy as the global PC market has started showing signs of recovery. The oversupply of netbooks in the first half of this year will also slow its growth in the second half, said Ye. • Dollar wobbles after Chinese comments (27th October) The dollar dropped to a fresh 14-month low against the euro in intraday trade yesterday after the People's Bank of China suggested that, while the dollar should remain dominant, the share of the euro and the yen should increase in its foreign exchange reserves. The exact composition of China's $2,270bn foreign exchange stockpile, the world's largest, is a state secret, but it is estimated that it is held 60 per cent in dollars, 30 per cent in euros and the remainder in sterling and yen. Fears that China would diversify its reserves away from a weakening dollar have been a drag on the US currency in recent months, amid repeated concerns from Chinese authorities over the value of its stockpiles. The dollar fell to a low of $1.5061 against the euro, its weakest level since August 2008, on the news. But the dollar pared its losses against the single currency, after the author of the report, which appeared in the Financial News, a paper published by the PBC, said it was purely a "personal view".
161
BPM- Weekly Report # 91 Zone 1-Asia
The dollar also received support later in the session as US stock markets weakened. Financial stocks moved sharply lower as investors digested reports that the US government was planning to make it easier to seize control of failing financial institutions. Analysts said this fuelled haven demand for the dollar. By midday in New York, the dollar was up 0.7 per cent at $1.4888 against the euro, 0.8 per cent higher at SFr1.0165 against the Swiss franc and 0.3 per cent stronger at $0.9179 against the Australian dollar. However, the dollar eased 0.1 per cent to Y92.00 against the yen as falling equities also boosted haven demand for the Japanese currency. The pound also managed to advance against the dollar, rising 0.1 per cent to $1.6315. Analysts said sterling's relatively robust performance reflected profit taking following a sharp fall following a shock drop in UK GDP last week. Meanwhile, the Canadian dollar dropped to two-week low against the US dollar after the Bank of Canada reiterated a warning over the currency's recent strength. The Canadian dollar fell 1.1 per cent to C$1.0637 against the US dollar after Mark Carney, BoC governor, said the strength of the Canadian currency could be a "significant drag" on growth. The South Korean won advanced against the dollar, rising 0.7 per cent to Won1,178.40 after Korean GDP came in stronger than expected, posting its fastest quarterly expansion in seven years. This heightened expectations that the Bank of Korea would raise interest rates at its policy meeting next month. • E Fund gets $1b for overseas investment (27th October) E Fund Management Co, China's fifth-largest mutual fund company by assets, said yesterday that the quota it received from the government to invest in overseas securities indicates that regulators believe the global economy has exited the worst of the financial crisis and will generate business opportunities for domestic fund houses. The State Administration of Foreign Exchange (SAFE) has approved quotas of $1 billion to E Fund, under the qualified domestic institutional investor (QDII) program after a 17month halt. China Merchants Fund also obtained a $500-million QDII quota from SAFE. "Granting the quota to us at this time shows that the government believes the overall global economy is recovering and it is going to be helpful to us," Ai Liqun, spokeswoman of E Fund, told China Daily over the telephone. China's decision to resume the issuance of QDII quotas is seen as a strategy to encourage capital outflow in order to ease the pressure of the appreciation of the yuan and hot money inflows. Analysts pointed out the resumption also came as part of China's longterm goal to reform and gradually open its capital market. "The decision is in line with the goal to loosen controls on capital outflow and to further improve and open China's capital market," said Liu Mingjun, an analyst at Cinda Securities. E Fund said it was aiming to sell funds focusing on equities in Asia, excluding Japan, but it will not officially launch the product until late November. China Merchants Fund is also planning a similar mutual fund product to invest in global stocks.
162
BPM- Weekly Report # 91 Zone 1-Asia
Analysts expressed optimism over the performance of the to-be-launched QDII products from the two Chinese fund companies as global stocks continue to see strong gains and the economy starts to recover. "The global financial market continues to recover and the risks will be much lower if the new QDII products are designed for several markets instead of a single one," Liu said. China launched the QDII program in 2006 to allow Chinese fund companies to invest in overseas securities and has approved 56 QDII institutions with a total investment quota of $55.95 billion. But SAFE halted the issuance of new quotas last May to shield investors from potential risks overseas. Analysts said that more domestic mutual funds would be lining up for SAFE's QDII quota approval in the future as the global economy continues to pick up under various stimulus packages and China plans to expand outward investment. • China considers new law to protect oil pipelines (27th October) Chinese legislators are discussing a draft law on the protection of oil and gas pipelines, which, they say, are facing growing problems due to rapid urbanization and the expansion of pipeline networks. Those who steal from pipelines could face heavy fines of up to 10 times the value of the stolen oil or gas, according to the draft law tabled with the country's top legislature on Tuesday. State Council (cabinet) official Cao Kangtai told lawmakers the safety of oil and natural gas pipelines in China "urgently needs protection" through legislation. The network, which carries 70 percent of the country's crude oil and 99 percent of its natural gas, was "threatened by rampant theft of oil and gas through illegal siphoning on the pipelines, as well as possible terrorist attacks," said Cao, director of the State Council's Legislative Affairs Office. Rapid urbanization had resulted in the reckless construction of buildings and roads within buffer areas for the pipelines in recent years, making their protection increasingly difficult, Cao said. "We need a special law to regulate and better coordinate pipeline construction with urban planning, to enhance protective measures, and to clarify responsibilities of different departments," he told the 11th meeting of the Standing Committee of the 11th National People's Congress (NPC), which is convening from Oct. 27 to 31. The draft law requires governments at different levels, particularly state and provincial-level energy departments, to enhance supervision of protection work. The draft also detailed the responsibility of enterprises that own and operate the pipelines, as well as the planning, the construction and protective measures.
163
BPM- Weekly Report # 91 Zone 1-Asia
Because of growing dependence on oil and gas, the total length of oil and gas pipelines in China has risen to 70,000 kilometers from 22,000 km in 1997, stretching from oil and gas fields in western and northeastern regions to densely populated coastal areas in the east. China was working with Kazakhstan, Russia and Myanmar to build trans regional pipelines, Cao said. By the end of 2010, the network would exceed 90,000 km. A document circulated at the meeting said the China National Petroleum Corporation (CNPC), which owns 65 percent of the country's oil and gas pipelines, reported more than 36,000 cases of oil theft from pipelines between 2002 and 2006. Surveys conducted by the CNPC and the China Petroleum & Chemical Corporation (Sinopec) in 2006 found about 15,000 buildings were illegally constructed above or near the pipelines. The draft law would prohibit activities that could threaten the safety of pipelines, such as opening or shutting pipeline valves without authority, and moving, dismantling or drilling pipelines. Driving heavy vehicles where pipelines are buried, and removing or damaging signs on pipelines would also become criminal offences. Certain activities, such as mining, tree-planting, construction of buildings, blasting and digging near pipelines, must be done with official authority, according to the draft. • China's growth benefits Chile copper export: report (27th October) Chile, which signed a Free Trade Agreement (FTA) with China in 2006, saw new opportunity of its own recovery in the Asian country's 8.9 percent GDP growth in the third quarter, a newspaper article said on Monday. China's economic growth boosted Chile's copper export to the country, said the article published on Chilean financial daily Estrategia with the title of "China: The Best Ally of the Chilean Recovery." "In July the copper sales have surpassed the figures of 2006, due to the systematic increase of the Chinese stock of copper," the daily said. China and Chile are important copper importer and exporter, respectively. According to a report from the Chilean Foreign Ministry, since 2007, more than one fifth of Chile's copper products went to China. This month marks the third anniversary of the FTA with China, which has allowed the effective tariff payment for the Chilean products to China to reach 0.2 percent in 2008. Bilateral trade is expected to continue growing, the article said. •
China's broadband users top 99.33 mln (27th October)
164
BPM- Weekly Report # 91 Zone 1-Asia
China added 16.45 million broadband users in the first nine months, bringing the total to 99.33 million, data released by the Ministry of Industry and Information Technology (MIIT) on Tuesday showed. China had 360 million Internet users by the end of September, said Zhu Jun, deputy director of the telecom development department under the MIIT. The figure was compared with 338 million by the end of June. Broadband was available in 96 percent of townships, and 91 percent of administrative villages had access to Internet by the end of September. China is also pushing forward construction of 3G network. In the first nine months, the top three telecommunication operators injected 96.1 billion yuan (14.07 billion U.S. dollars) in building 3G network. • China, Nigeria sign agreements on Abuja-Kaduna railway (27th October) China Civil Engineering Construction Corporation (CCECC) and the Nigerian Ministry of Transport signed Monday agreements in the Hilton Hotel in Abuja, the capital of Nigeria, on building a 186.5 km modernized railway. The railway is designated to have nine stations and 18 bridges. The contracted value is $850 million and the construction period is three years. On behalf of the CCECC and Nigerian Ministry of Transport, Zhou Tianxiang, deputy general manager of the CCECC, and Nigerian Minister of Transport Ibrahim Bio signed the agreements. Ibrahim Bio said "We are gathered here to witness this landmark signing ceremony of the implementation of the first segment of the Nigerian Railway Modernization Project, Abjua-Kaduna. The second segment of the project, Lagos-Ibadan, is to be awarded latest by the middle of next month." "With the construction of the railway, the dream of achieving a seamless transport network as envisaged in the vision 2020 shall be realized and the construction will substantially improve the well being of Nigerian people," he said. Zhou Tianxiang said the CCECC will deliver an efficient and functional railway system within the stipulated 36 months. "We will commit ourselves to building a modernized railway system in Nigeria, which would be incomparable in Africa." Chinese Ambassador to Nigeria Xu Jianguo was present on the signing ceremony and expressed congratulations on the progress of Sino-Nigerian cooperation in infrastructure development. • China locked into financial policy (27th October) China has reiterated its commitment to proactive financial policies and moderately loose monetary policies amid market speculation that it might be preparing an exit strategy. Despite the fact that the country's economic growth is likely to speed up in the fourth quarter, the government will stay the course on its fiscal stimulus spending and its support of loose monetary policy, said Vice-Premier Li Keqiang yesterday at the International Tax Dialogue Global Conference. On the subject of the $586-billion stimulus package's role in reviving the economy, Li said: "The stimulus package is practical, timely and effective. But the stimulus financial policies should also be flexible and sustainable."
165
BPM- Weekly Report # 91 Zone 1-Asia
According to the figures released by the National Bureau of Statistics last week, China had year-on-year GDP growth in the third quarter of 8.9 percent. The growth rate was 7.7 percent overall for the first three quarters of 2009. Li attributed the economy's recovery to rising domestic demand, saying the expected tax cut of 550 billion yuan ($80.55 billion) this year would not only prop up domestic demand but also help adjust the structure of the economy. The vice-premier also emphasized that it was important to keep stable tax policies because China is facing a crunch time in the revival of its economy. The government has not decided whether it will extend the tax break for the auto market into next year. Car sales boomed in 2009 because of cuts in purchase tax. Auto sales in China reached 9.66 million in the first three quarters, exceeding total sales in 2008. Li Wenjie, general manager of property agency Centaline China (North China region), said continuing current tax preferences, including tax cuts on the purchase of a second home, would help maintain a stable and predictable environment for the property market. However, some economists have cautioned that part of the 8.65 trillion yuan made in stimulus loans during the first nine months of the year flowed into stock and property markets instead of the real economy. Jia Kang, director of the Research Institute for Fiscal Science at the Ministry of Finance, told China Daily: "The rising expectation of inflation doesn't mean real inflation pressure. So China will continue with its proactive financial policies and moderately loose monetary policy." The stock market is relatively stable, but the bubbles in the overheated property market should be monitored, Jia said. Angel Gurria, Organisation for Economic Co-operation and Development secretarygeneral, said at the same conference that the time was not right for China to abandon its policies. "I will not recommend the removal of stimulus now. I recommend we start to look for fiscal consolidation," Gurria said. • China Life reports more than doubled net profit in Q3 (27th October) China Life Insurance Company Limited, the country's largest life insurer, posted a net profit of 5.95 billion yuan ($871.74 million) in the third quarter of this year, up 154.55 percent year-on-year. The company attributed the profit surge to the improvement in the country's equity market, which led to higher investment returns, it said in a report to the Shanghai Stock Exchange on Monday. China's key Shanghai stock index has gained more than 70 percent this year, boosted by a recovery of the country's economic growth. China Life said its net profit totaled 19.87 billion yuan in the first three quarters, up 51.58 percent year-on-year. At the end of September, the company's total assets topped 1.12 trillion yuan, an increase of 13.95 percent compared with the same period last year. The company's shares gained 3.85 percent to 31.54 yuan in the Shanghai bourse Monday and climbed 5.74 percent to HK$37.75 ($4.87) in the Hong Kong bourse. •
Aggressive China online game firms eye global crown (27th october)
166
BPM- Weekly Report # 91 Zone 1-Asia
Armed with cash from recent listings, Chinese online game makers are gearing up to play in Western markets, challenging industry leaders Electronic Arts（ EA） and Activision Blizzard on their home turf. Having prospered at home, companies such as Changyou and Shanda Games want to take a page from China's export machine in sending their wares abroad. Changyou, which raised $120 million in an April Nasdaq IPO, is in the final testing stage for its martial arts multiplayer online game, Dragon Oath, for the US market, making a commercial launch in end of 2009 or early 2010 probable. The company began testing the game in Europe in August. Many US gamers still prefer consoles such as Microsoft's Xbox and Sony's PlayStation to online play. However, analysts said a slow but sure shift toward online gaming, which allows for flexible formats, multiple players and can be played at any Internet terminal or mobile phone, is taking place and will benefit Chinese online game developers. "The Western markets are changing, it is a console-driven market but I think MMOs (massively multiplayer online) games are the next wave," said Atul Bagga, an analyst at research firm ThinkEquity. "EA and Take Two Interactive are strong on the console side but online gaming is a very different animal." With more than 50 million online gamers, China is expected to corner more than 40 percent of the global market by 2011, according to research firm Samsung Securities. Where Asian game operators have a head start is in their micro-transaction business model where gamers pay nothing for the game itself, but pay small fees each time they want to buy an upgrade, be it a map or a weapon. This differs from the current business model in the US and Europe which is subscription based. Analysts said Chinese computer game firms such as Changyou and Percent World have the operational expertise and business model to take on global rivals. In September, Shanda Interactive spun off its gaming unit, Shanda Games, to expand overseas. The US console market makes up about half the gaming market, with console software set to rake in an estimated $26 billion in revenue in 2009, according to Samsung Securities and UBS. The online game sector is growing rapidly, with revenue expected to grow 21 percent to more than $13 billion in 2010, while revenue from video games fall 5 percent, according to Samsung Securities. Perfect World derives about $2.5 million from its US operations every month, Bagga estimates, and trades at a relatively modest 12.9 times its 2010 earnings, according to data from Thomson One Analytics. Changyou trades at 9.6 times, while Shanda Games and NetEase trade at 11.1 and 13.1 times respectively, versus the industry average of around 16 times. Shares of Changyou and Perfect World are up about 120 percent and 170 percent respectively, while EA and Activision Blizzard shares are up 23 percent and 41 percent respectively. •
China to tighten rules on personal loans (28th October)
167
BPM- Weekly Report # 91 Zone 1-Asia
China's banking regulator Wednesday issued a draft plan on stepping up rules of personal loans to prevent misuse of money lent from the country's financial institutions. The draft regulation, posted on the web site of the China Banking Regulatory Commission (CBRC) to solicit public opinions, aimed to enhance prudent management of personal loans and ensure the money to enter real economy, the CBRC said. The CBRC ordered lenders not to give loans to individuals without knowing their proposed usage. The regulations did not raise the threshold for people applying for funds, the CBRC said. In the first six months, new personal loans hit 650.8 billion yuan, 391.7 billion yuan more than the same period of last year, the CBRC said. The amount and types of personal loans was rising, but the country lacked a unified regulation, which would result in legal risks and affect the steady and fast development of the country's economy, the CBRC said. The draft regulation came amid the concerns that part of loans were used for speculation rather than in real economy, increasing risks of asset bubbles and bad loans. In the first nine months, Chinese banks lent 8.67 trillion yuan of new loans, compared with the full year target of 5 trillion yuan after the government eased restrictions to back the economic growth amid the global economic downturn. • Japan automakers see output boom in China (28th October) Japanese automakers are experiencing a production boom in China with Toyota, Honda and Nissan setting records for September, the latest signs of an emerging recovery for Japan's auto industry. Honda Motor Co.'s production set a record for the company in both China and Asia overall for September, although total overseas production has been declining for a year. Japan's No. 2 automaker produced 60,741 vehicles in China, up 20 percent from the same month a year earlier. Honda's global production fell 16.6 percent to 300,742 in September, it said in a statement Wednesday. Toyota Motor Corp. produced 64,880 vehicles in China in September, up 37 percent from the same month last year and the best results for September. China has been widening its lead over the US as the world's top auto market, with the industry's September sales jumping 78 percent over a year earlier, boosted by tax cuts and government stimulus spending. Sales in smaller cities have been booming as automakers rush to woo first-time car buyers with new models. Nissan Motor Co., allied with Renault SA of France, also set a record in China for a single month's production at 55,174 vehicles in September, up 62.9 percent. On Tuesday, Honda reported better-than-expected quarterly earnings, and raised its profit forecast for the fiscal year through March 2010, to 155 billion yen ($1.7 billion), up 13 percent from the previous fiscal year. That has set off hopes other Japanese automakers may have similar good news when they report earnings over the next few weeks, boosted by strong demand in China and other emerging markets. Honda shares gained in Tokyo trading Wednesday on optimism about its outlook, rising 3.3 percent to 2,940 yen ($32).
168
BPM- Weekly Report # 91 Zone 1-Asia
Toyota's global production for September, including group companies Daihatsu Motor Co. and Hino Motors, sank 4 percent on year to 758,290 vehicles. Nissan's global production for the month slipped 8.5 percent to 289,422 vehicles. Mazda saw its global production sink nearly 17 percent to 107,332 vehicles in September, while Mitsubishi's global production dropped 29 percent for the 14th consecutive monthly decline to 87,255 vehicles. • US calls for balanced trade at meeting with China (29th October) China and the United States kicked off an annual trade meeting on Thursday with both sides reiterating calls against protectionism, against a backdrop of friction over trade and the value of their currencies. The annual Joint Commission on Commerce and Trade meeting, held in a garden compound in the lakeside city of Hangzhou, comes just a few weeks before US president Barack Obama's first official trip to China. The meeting between Chinese vice premier Wang Qishan and the US commerce secretary, trade representative and agriculture secretary is overshadowed by a number of trade disputes, including recent US decisions to set duties on Chinese products that US industry says are flooding US markets. Wang called on his American guests to "stand firmly against all types of trade protectionism" while US Commerce Secretary Gary Locke said Obama was "committed to free and fair trade". A flurry of official American visits have preceded Obama's trip, as the United States tries to reach accords on currency and trade with its second-largest trading partner and the largest foreign holder of its government debt. "We must look to the future and cooperate to create balanced and sustainable trade, lifting more of our people out of poverty not just for our own citizens in China and the United States but indeed all around the world," Locke said. "It is critical that we make definite, concrete, demonstrable progress today to demonstrate to our citizens and people of the whole world that US and China can work together." About 75 US delegates from Washington and embassy officials attended the opening meeting, in which US Trade Representative Ron Kirk called for a mid-year review at the vice-ministerial level to identify problems before they come up. Instead of formal trade barriers, the challenges to free trade will increasingly lie in the rules, regulations and behaviors of the two sides, Kirk said. On his way to Hangzhou, Locke said the United States wants China's currency to climb further. The US Commerce Department on Tuesday set preliminary duties on imports of steel grating and concrete steel wire strand, citing Chinese government subsidies. A final determination on the duties is due in January. China has told the United States it will conduct a trade investigation on autos and sports utility vehicles made by Chrysler, Ford and General Motors, the president of the American Automotive Policy Council told Reuters on Wednesday. The Obama administration in September imposed safeguard duties on imports from China for the first time, with duties on tyres that Chinese officials warned would reduce their willingness to make concessions at this week's JCCT meeting.
169
BPM- Weekly Report # 91 Zone 1-Asia
China responded to the tyre duties by saying it would launch its own anti-dumping investigations into US poultry and autos, which together accounted for roughly the same value as the Chinese exports of tyres to the United States. • 22 Chinese companies listed on Nasdaq this year (29th October) The Nasdaq OMX Group, Inc. has welcomed 22 companies from China to the Nasdaq Stock Market year-to-date in 2009, said the company on Wednesday. The 22 listed Chinese companies, include eight IPOs, 13 OTCBB upgrades, and one switch to Nasdaq from NYSE AMEX. "China is the largest and most important overseas market for us, with 116 listed companies," said Bob Greifeld, chief executive officer of Nasdaq OMX. "Companies going public in today's market are looking for greater visibility to global investors and seeking better intelligence on investor activity from their exchange. As a result, we are seeing more companies coming to Nasdaq and increased interest in the public company support services we provide," he added. Shengda Games, which was listed on September 25, is one of the largest US IPOs this year and the largest capital raise for a Chinese company in 2009. There are currently 116 Chinese listed companies on Nasdaq, including Baidu, Nasdaq's largest listed company in China and a member of the prestigious Nasdaq-100 Index. Companies span across all major sectors including technology, media and telecom, consumer, industrials, healthcare, energy, materials and financials. • China to pursue trade case against US automakers (29th October) China has told the US that it will take steps that could lead to higher tariffs on imports of autos made by GM, Chrysler and Ford. Steve Collins, president of industry trade group the American Automotive Policy Council, said Wednesday that US officials have told the three Detroit automakers that China is expected to begin an investigation under anti-dumping laws into their business practices as soon as next week. If the investigation concludes that the companies receive government subsidies, or sell products in China at below-market prices, China could slap tariffs on US auto imports. The move is the latest trade dispute between the two countries, which are already fighting over steel pipes, chicken products, and pirated movies and music. The trade spats worsened after the Obama administration last month announced up to 35 percent duties on Chinese-made tires, to be imposed for the next three years. The US auto companies export only about 9,000 cars to China annually, Collins said. GM manufactures and sells more than a million cars a year in China, though those sales wouldn't be affected. Mercedes-Benz, BMW and Nissan also export cars to China from plants in the United States, but those won't be included in the investigation, Collins said. GM and Chrysler have received billions of dollars in aid from the government's $700 billion bailout fund, though Ford has not. An e-mail to a spokeswoman for US Trade Representative Ron Kirk was not immediately returned. US trade officials, including Kirk and Commerce Secretary Gary Locke, are currently in Hangzhou, China for high-level economic talks. President Obama will make his first visit to China on November 15-18.
170
BPM- Weekly Report # 91 Zone 1-Asia
Greg Martin, a spokesman for GM in Washington, said GM wanted to study the documents before commenting. Ford spokesman Mike Moran and Chrysler spokeswoman Linda Becker deferred comment to the trade group, and messages were left for two Chrysler spokeswomen Wednesday evening. "The documents containing the charges were presented to the US government this week but have not yet been translated. Therefore we are not in a position to comment at this time," Collins said in a statement. China is an important market for the US automakers, especially GM and Ford, whose sales have been growing there while developed markets like the US and Europe sputter. Yet if China does impose tariffs, it's not likely to hurt the automakers much. GM and Ford sell hundreds of thousands of vehicles there, but most are made in China. GM so far this year has sold 1.3 million cars and trucks in China, most of them built there in a joint venture with Chinese automaker SAIC. Ford also builds most of the vehicles it sells in China at factories there, but has only a 2 percent market share. Last month the Dearborn, Michigan, automaker announced plans to build a new assembly plant in China to make the next-generation Focus compact car. Ford has sold 316,639 vehicles in China from January through September, with last month's sales jumping nearly 80 percent from the year before. Chrysler has been pursuing partnerships in China and now only exports only a small number of vehicles to China. Total auto sales in China so far this year have surpassed those in the US, giving China a wide lead over the US as the world's top auto market. Through September, 9.66 million vehicles were sold in China, up 34 percent from the same period last year. During the same time, US sales plunged 27 percent to 7.8 million units, according to Autodata Corp., a research firm. Sales in China are expected to continue climbing to 12.6 million units in 2009, while analysts say US light vehicle sales for the year will wind up around the 10.5 million level. • Defense university builds China's fastest supercomputer (29th October) The National University of Defense Technology (NUDT) unveiled Thursday China's fastest supercomputer, which could rival the world's most powerful computing devices. The supercomputer, named Tianhe, meaning Milky Way, is theoretically able to do more than 1 quadrillion calculations per second (one petaflop) at peak speed. A single-day task for Tianhe might take a mainstream dual-core personal computer 160 years to complete, working non-top -- if it can last that long. NUDT president Zhang Yulin said the 155-ton system, with 103 refrigerator-like cabinets lined up on an area of about 1,000 square meters, is expected to process seismic data for oil exploration, conduct bio-medical computing and help design aerospace vehicles.
171
BPM- Weekly Report # 91 Zone 1-Asia
China's national high-technology research and development program and the Binhai New Area, a major economic development zonein the northern port city of Tianjin jointly financed Tianhe, which cost at least 600 million yuan (88.24 million U.S. dollars). Tianhe's peak performance reaches 1.206 petaflops, and it runs at 563.1 teraflops (1,000 teraflops equals one petaflop) on the Linpack benchmark, which was originally developed by U.S. computer scientist Jack Dongarra and has become an internationally recognized method to measure a supercomputer's real performance in practical use. Zhang said the technical data of Tianhe had been submitted to the world Top 500 list, compiled by the University of Mannheim, in Germany, the National Energy Research Scientific Computing Center, the Lawrence Berkeley National Laboratory, and the University of Tennessee in the United States. The next Top 500 supercomputer list will be released in November. The performance of Tianhe would have made it the world's fourth most powerful supercomputer in the most recent ranking in June. "I was shocked at the milestone breakthrough, which was beyond expectation," said Zhang Yunquan, a researcher with the Institute of Software of the Chinese Academy of Sciences (CAS), and an organizer of the China Top 100 list, which was released at a national conference on high-performance computers Thursday. "I previously forecast China's first petaflop computer no earlier than the end of 2010," Zhang said. The giant device, a product of 200 computer scientists and two years' work, was housed in the NUDT campus in Changsha, Hunan Province, and would be moved to the National Supercomputing Centerin Tianjin at the end of 2009, said Li Nan, chief coordinator of the program. Equipped with 6,144 Intel CPUs and 5,120 AMD GPUs, Tianhe was able to store all 27 million books in the National Library of China four times over, said Zhou Xingming, an academician of CAS and a professor with NUDT. "As far as I know, a combination of CPU and GPU is something new used to make a petaflop computer. A GPU, or graphic processing unit, plays a role as an accelerator to make the computer run faster, but reduces its power consumption and cost," Zhou explained.
172
BPM- Weekly Report # 91 Zone 1-Asia
"After it's installed in Tianjin, we plan to add hundreds or thousands of China-made CPUs to the machine, and improve its Linpack performance to over 800 teraflops," Zhou said. Although its annual electricity bill can be as high as 18 million yuan, Tianhe could have been ranked the world's fifth greenest supercomputer, according to Green500 List in June, compiled by researchers at Virginia Tech aiming to provide a ranking of the most energy-efficient supercomputers in the world and serve as a complementary view to the TOP500. Of the world's fastest 500 supercomputers, the United States alone has invented 291, including the top 10, Europe has 145 and Asia 49, the June World Top 500 List said. In the same list, the Chinese mainland has 20 high-performance computers, with CPUs all supplied by foreign manufacturers. China's Dawning Information Industry Company is attempting to build its own supercomputer that overcomes the petaflop barrier by2010. • China, US start annual trade talks in E.China (29th October) China and the United States on Thursday started their annual trade talks in Hangzhou, captial of east China's Zhejiang Province. Chinese Vice Premier Wang Qishan co-chaired the 20th Joint Commission on Commerce and Trade (JCCT) with Commerce Secretary Gary Locke and Trade Representative Ron Kirk of the United States. The JCCT began in 1983 as a platform for both countries to promote trade and address issues of mutual concern. • China retail sales likely to grow 16% in 2010: commerce official (29th October) China's retail sales will grow around 16 percent in 2010 as boosting domestic demand will remain the focus of policy; a newspaper cited a commerce official as saying on Thursday. Wang Bin, an official in the market operation department of China's Ministry of Commerce, said consumption had not yet recovered to the rapid expansion path seen before the global financial crisis, and there was still plenty of space to expand demand in the country, the China Securities Journal reported. The 16 percent growth rate in retail sales is largely in line with what China posted in the first quarters of this year. He said though it was not certain whether all stimulus polices like promoting car sales to rural consumers would continue next year, expanding domestic demand was poised to be a key note of macro policy. Wang made the remarks at a forum held by the National Bureau of Statistics. •
China, US pledge no more tit-for-tat in trade (29th October)
173
BPM- Weekly Report # 91 Zone 1-Asia
China and the United States said Thursday they would not stage any new trade protection measures against each other, a significant step which lays the groundwork for the presidential summit next month. "Both sides agreed on not introducing any new trade protection measures against each other as both vowed to oppose trade and investment protectionism and observe the related consensus of the G20 summit," Chinese Commerce Minister Chen Deming said later Thursday. Chen made the remarks at the end of the 20th China-US Joint Commission on Commerce and Trade (JCCT) talks in China's eastern city of Hangzhou. The comments also came at a time of increasing China-US trade disputes in the past months, involving Chinese tires, cement products, US poultry and others. "The pledge is significant as it shows both countries' determination to dump punitive measures against each other and instead seek common prosperity," Niu Xinchun, a research fellow with China Contemporary International Studies Institute, told Xinhua. "As influential powers, China and the United States should stand firmly against all types of trade protectionism, promote both countries' economies and help lift the world out of recession," Chinese Vice Premier Wang Qishan told the opening session of the JCCT Thursday noon. Wang co-chaired the 20th JCCT talks with US Commerce Secretary Gary Locke and US Trade Representative Ron Kirk in a lakeside garden compound in the capital of east China's Zhejiang province. Locke highlighted the significance of this year's talks, saying it is the first JCCT meeting of President Obama's administration and comes a few weeks ahead of President Obama's first visit to China. Wang said President Obama's visit in mid November will "provide new opportunities for China-US cooperation." "In a spirit of candor and understanding, hopefully both sides will discuss issues of mutual concern and achieve fruitful results at today's JCCT meeting," Wang said. "It is critical that we make definite, concrete, demonstrable progress today to demonstrate that US and China can work together to achieve results from the JCCT," Locke said. Later Thursday, the US commerce chief lauded the one-day JCCT talks as "successful," as both sides "made very significant progress on a number of issues." Locke said China will drop a requirement that most of the components of wind powerrelated equipment be made in China. "The United States agreed to delete some articles in its bill which limited China's poultry exports for six years," Chinese Minister of Agriculture Sun Zhengcai said in response to a Xinhua's question. In return, China will resume imports of pork products from the A/H1N1 flu-hit areas in the United States, Sun said. • France goes back on China's shopping list (29th October) After skipping over France twice this year on purchasing delegations, China will shop in the Western European nation late next month, a move that analysts said signals a return to their economic relationship. The delegation will arrive in France on Nov 26, nine months after China passed France over on its first business delegation of Europe this year.
174
BPM- Weekly Report # 91 Zone 1-Asia
At the time, the relationship between the two nations had bottomed out due to French leader Nicolas Sarkozy's meeting with the Dalai Lama in December 2008. More than 100 Chinese companies, both State-owned and private, have applied to join the tour from a wide range of sectors, such as aerospace, energy, railway, nuclear power and environmental protection, said Gao Hucheng, vice-minister of commerce. "The preparation for the tour has been well underway," Gao said yesterday during his Beijing meeting with Christine Lagarde, French minister of the economy, industry and employment. "This business delegation will help promote China-French relations," Gao said. The first cancelled visit to France happened in late February, when the nation sent a business delegation to Switzerland, Germany, Spain and the UK, where Chinese companies spent $13 billion. China's second business delegation to Europe in July also skipped France. Chinese companies shopped in countries including Italy, Sweden and Finland. Relations between the two nations began to recover in April after they agreed to a joint statement during the G20 summit in London, in which France stated that "Tibet is an integral part of Chinese territory". The size of next month's delegation is unknown with more Chinese companies applying to join the delegation, said Ling Ji, deputy director of the Department of European Affairs with the Ministry of Commerce. Ling also refused to reveal how much the delegation plans to spend. Lagarde said France welcomes the Chinese purchasers, as the nation is mired in a high unemployment rate. In September, more than 2.57 million French lost their jobs, up 25 percent from the previous year, said the French Ministry of Economy, Industry and Employment. France is China's fourth largest trading partner in Europe. Amid the financial crisis, trade between the two nations fell by 16 percent to $15.33 billion in the first half, the first drop since 1996. • Friction Over Auto Exports in U.S.-China Trade Talks (29th October) Trade talks between top Chinese and U.S. officials opened on a discordant note Thursday as fresh frictions surfaced over American auto exports. The start of the formal talks ran two hours late as discussions over specific issues dragged on, and officials addressing the opening session referred constantly to the need to speak with "candor" -- in diplomat-speak a word often signaling differences of opinion. "It is critical to make concrete, demonstrable progress today to demonstrate to the people of the U.S. and China that we can work together," Commerce Secretary Gary Locke said in his opening remarks. Locke's comments followed an announcement that China plans to investigate dumping allegations against auto exports by the three big Detroit automakers. If China concludes the car makers are getting government subsidies or are selling their products in China at below-market prices, China could raise tariffs on U.S. auto imports. Punitive measures against Ford Motor Co. (NYSE:F PRS) (NYSE:F PRA) (NYSE:F) , General Motors Corp. (NYSE:GM) and Chrysler would be unlikely to cause much harm since most of the vehicles they sell to the Chinese are made in China. But the issue has the potential to sour the doggedly cordial atmosphere officials have sought to cultivate ahead of President Barack Obama's Nov. 15-18 visit to China.
175
BPM- Weekly Report # 91 Zone 1-Asia
Locke did not refer specifically to the auto issue, though he said he hoped for progress on other perennial trade issues: restrictions on U.S. farm exports, cooperation on clean energy, improved protection of copyrights and other intellectual property, and trade and business restrictions on various products and services, such as medical devices, pharmaceuticals and insurance. Later, the two sides were to sign an agreement to set up a U.S.-China Energy Cooperation Program, a public-private partnership that will use U.S. expertise to help develop clean energy in China. U.S. Trade Representative Ron Kirk also did not mention autos, though he proposed that the annual meetings of the U.S.-China Joint Commission on Commerce and Trade be supplemented by midterm reviews to help ease consultations over increasingly thorny issues. The two sides are already at odds over steel pipes, chicken products, and pirated movies and music. The trade spats worsened after the Obama administration last month announced up to 35 percent duties on Chinese-made tires, to be imposed for the next three years. Still, U.S. officials have said they do not expect any of the various simmering disputes to undo progress in other areas, or to sour overall ties. Repeating what has become a mantra for the Obama administration, Kirk said the two sides would not "allow any single issue to detract from our broader overall relationship." Despite the trade rows, U.S. business needs China more than ever. China's economic recovery has surged ahead with growth in the last quarter a stunning 8.9 percent, leading other major economies by a large margin. Earlier this month, the Obama administration refrained from designating China as a currency manipulator even though American manufacturers contend that China's management of its currency is a primary reason for the huge bilateral trade deficit. Currency issues, which are handled by the Department of the Treasury, were not on the agenda for Thursday's talks, the 20th since the forum was created in 1983. Trade has soared since then, to over $400 billion in total last year by U.S. figures, and China has gone from having virtually no private cars or major auto industry to being the world's largest auto market, as the U.S. market languished in recent months. Ford Motor, General Motors and Chrysler export only about 9,000 cars to China a year, though they manufacture millions more inside China in the joint ventures they are required to operate with local partners if they want to manufacture for the fast-growing market. GM so far this year has sold 1.3 million cars and trucks in China, most of them built there in a joint venture with Chinese automaker SAIC. Mercedes-Benz, BMW and Nissan also export cars to China from plants in the United States, but those won't be included in the investigation, according to Steve Collins, president of the industry trade group the American Automotive Policy Council. GM and Chrysler have received billions of dollars in aid from the government's $700 billion bailout fund, though Ford has not. But the move would certainly rankle, given the prosperity being enjoyed by Chinesebased automakers at a time when their global rivals are struggling for survival.
176
BPM- Weekly Report # 91 Zone 1-Asia
Through September, 9.66 million vehicles were sold in China, up 34 percent from the same period last year. During the same time, U.S. sales plunged 27 percent to 7.8 million units, according to Autodata Corp., a research firm. Sales in China are expected to continue climbing to 12.6 million units in 2009, while analysts say U.S. light vehicle sales for the year will wind up around the 10.5 million level. • China creates 7.57M new jobs from Jan. to Aug. (30th October) China has created 7.57 million new jobs in the first eight months of this year in a bid to guarantee employment amid global economic downturn, a senior legislator said here Friday. The number accounted for 84 percent of the full-year target in 2009, and the employment situation was better than expected, said Huang Zhendong, chairman of the Committee for Internal and Judicial Affairs under the National People's Congress (NPC). Huang made the remarks in a report on the enforcement of Trade Union Law delivered at the 11th session of the 11th NPC Standing Committee on Friday. About 3.57 million laid-off workers had been re-employed in the first eight months, or 71 percent of the 5-million target for the whole year, Huang said. Most of the migrant workers who had returned home after being laid off had found new work. Some even started their own businesses in their hometowns, Huang said. As the global financial crisis spread rapidly in the second half of last year, many enterprises suffered problems of overcapacity or even bankruptcy, causing an increase in unemployment, Huang said. A series of counter-measures including expanding domestic demand to boost employment, encouraging business startups and offering help to special groups, had made notable achievements, he said. • China sets up $1.32B high-tech VC funds (30th October) China's top economic planner said on Friday that it had launched venture capital funds totalling 9 billion yuan ($1.32 billion) jointly with several provincial governments and private investors to support the country's growing high-tech sector. Investments will focus on electronic and information industries, the biological and pharmaceutical sector and environmental and energy-related projects, the National Development and Reform Commission, the powerful planning agency, said in a statement on its website (www.ndrc.gov.cn). It said that seven provincial-level governments had joined the venture capital scheme: Beijing, Jilin, Shanghai, Anhui, Hunan, Chongqing and Shenzhen. "The purpose of setting up the funds is to direct capital to invest in competitive high-tech enterprises and to improve their capacity for innovation," the statement said. The money will be spread among a total of 20 venture capital funds. The central government contributed 1 billion yuan, local governments pitched in 1.2 billion yuan and the remainder came from private investors, Xinhua news agency said. It did not provide any details about who the private investors were or about how the venture capital funds would be structured.
177
BPM- Weekly Report # 91 Zone 1-Asia
• PBOC likely to adopt a tighter monetary policy: report (30th October) The People's Bank of China (PBOC), the central bank, continued to withdraw liquidity through open market operations this week, with a net drain of 133 billion yuan from the market, sending the net withdrawal in October to 156 billion yuan ($22.85 billion), the biggest monthly drain since February, the China Business News (CBN) reported today. The PBOC yesterday initiated the selling of three-month bills worth 80 billion yuan at a yield of 1.3280 percent and soaked up 50 billion yuan from the interbank market through 91-day repurchase arrangements, with the interest rate remaining at 1.33 percent, according to the China Securities Journal. Though the interest rates stayed stable, the central bank has been draining large sums of funding from the financial system over the past three weeks. Analysts said October might be the turning point of the monetary authority's open market operations, changing their strategies from loose to tight, the newspaper said. 156 billion yuan in October According to the PBOC statement, the central bank drained 130 billion yuan through Thursday's open market operations by issuing three-month bills and 91-day repurchase agreements. The statistics released by Wind Info, a Chinese financial data provider, showed with bills worth 55 billion yuan maturing this week, the central bank soaked up 188 billion yuan, or a net withdrawal of 133 billion yuan. In the previous two weeks, the PBOC drained 73 billion yuan and 160 billion yuan respectively. Other statistics showed the central bank's net withdrawal in October totaled 156 billion yuan after it drained money from the open market for three weeks in a row. Turning point Analysts said this month might be the first turning point of the central bank's open market operations since the fourth quarter of 2008. The central bank had injected money into the financial system for five consecutive months before October. The net injection in September even reached 279 billion yuan thanks to factors like IPOs and the National Day holidays, the report said. But as the central government recently made it clear to well manage "inflation expectations", the monetary authority is now intensifying efforts to take previous injections back. As China's economy began to show recovery in the second half of this year, mainstream organizations had previously made predictions about possible shift of the central bank's policies, but remained vague on the timing of the policy changes, the report said. Worldwide, Australia and Norway recently raised interest rates, and India also announced this week the hike of the reserve requirement ratio. The changing external monetary environment would also affect China's monetary policies, according to the report. Social front • Tourists now come to Bird's Nest to roost (25th October) Move over Palace Museum and Summer Palace, Bird's Nest and Water Cube are here.
The two "modern wonders" pushed the historical landmarks to fourth and fifth spots is a poll on the must-see attractions in Beijing.
178
BPM- Weekly Report # 91 Zone 1-Asia The top tourist attraction, however, is still the Great Wall (Badaling section).
Built for the 2008 Beijing Olympic Games, the Bird's Nest (or National Stadium) and the Water Cube (or National Aquatics Center) left many a famous landmark by the wayside to come in second and third in an opinion poll, released at the opening of the 11th Beijing International Tourism Festival on Friday.
The Palace Museum (or Forbidden City), from where the Ming (1368-1644) and Qing (1644-1911) emperors ruled, and the Summer Palace were followed by Tian'anmen Square, Temple of Heaven, and Wangfujing.
"This reflects tourists' choice," Yang Yang, general manager of Beijing Spring International Travel Services, said. "Since October last year, almost all the tourists who have come to Beijing in groups have visited the Bird's Nest and the Water Cube."
"They were very high on the must-see list even before this poll," he said.
The other tourist hotspots include Shichahai Lake (No 9), Happy Valley theme park (No 10) and the National Center for the Performing Arts, popularly called the Egg Shell (No 15).
The poll was organized by the Beijing Tourism Administration, and 14 million netizens, both from home and abroad, voted in May and June to choose the 30 most important tourist spots. Tourism industry experts then shortened the list to 16 attractions.
In a similar poll organized in 1986. Tian'anmen Square had topped the list, followed by the Palace Museum, the Great Wall, Beihai Park, the Summer Palace and Fragrant Hill.
Fragrant Hill, Shidu (a national karst geological park in Fangshan district), and the Grand View Garden (where the film based on the classic novel Dream of the Red Chamber was shot), among the top tourist spots on the 1986 list, have disappeared from the new list.
"The new list reflects a more vibrant, modern Beijing," Beijing resident Zhang Wei said.
•
Public cringes at vaccine shot(26th October)
More than 54 percent of Chinese people do not plan to receive the A/H1N1 flu vaccine because they doubt its safety and quality, according to a new survey by China Daily and major portal Sohu.com.
The initial results from 2,000 respondents stand in significant contrast with a survey conducted by Sohu.com two months ago in which 76 percent of 2,000 said they want the inoculation. It also marks the first time that more than half of a poll's respondents have shown a lack of trust in the vaccine.
"The vaccine has been developed and administered so quickly that I couldn't help questioning its quality and reliability," said Zhang Lin, a 36year-old working mom in Beijing, who refused free vaccination for her 8-year-old boy.
Only 30 percent in the latest ongoing survey said they would like to be inoculated and a little more than 15 percent said they would follow others in deciding whether to get the jab.
Currently the inoculation program is being scaled up nationwide and would cover 5 percent of the population by the end of the year, said
179
BPM- Weekly Report # 91 Zone 1-Asia Health Minister Chen Zhu. The intensified effort comes as the outbreak is expected to peak around December in most areas of the nation.
"Tens of millions could be infected," warned Zeng Guang, chief epidemiologist at the Chinese Center for Disease Control and Prevention (CDC).
"A surge of critical cases or even deaths would be unavoidable," said He Xiong, deputy director of the Beijing CDC.
But like Zhang, the 36-year-old mother, many are casting doubt on the vaccine.
Nearly 70 percent of those who did not want the vaccine in the survey said they didn't trust its quality and safety; 23 of those who didn't want it said they feared potential adverse reactions.
About 11 percent of the 2,000 respondents said they were young and healthy and didn't need the vaccine.
Scientists, however, said these concerns were not well grounded particularly when the number of infections, which stood at 33,064 on the Chinese mainland by Friday, have increased rapidly with more severe cases emerging and four H1N1-related deaths reported within this month.
The latest death in China involved a 7-year-old boy in Heilongjiang province who died of seasonal influenza and severe pneumonia on Friday, said local health authorities. The H1N1 strain was found in the flu virus that infected the first grader.
Starting from late September, China has so far inoculated more than 300,000 people, mainly young students and old people against H1N1, with 150 showing mild adverse reactions like swelling and fever.
Worldwide, nearly 5,000 people have reportedly died from the H1N1 flu, according to the World Health Organization (WHO). US President Barack Obama also declared on Friday the H1N1 outbreak a national emergency.
The illness, unlike other flu strains, has been particularly tough on children and young adults and everyone is susceptible, experts said.
A recent New England Journal of Medicine study showed that among Americans hospitalized with A/H1N1 flu last spring, one in four ended up in intensive care and 7 percent of them died.
WHO spokesman Gregory Hartl said the H1N1 vaccine had been used in seasonal flu shot formulation. He said the seasonal flu shot had been among the safest vaccines known to exist.
"The most important tool we have to fight this pandemic is the vaccine. Bad reactions are fully to be expected, especially the mild types though," he stressed.
Besides, the speed with which China has brought a vaccine to market is not surprising, said Yuen Kwok-yung, head of the Department of Microbiology at the University of Hong Kong.
"Making flu vaccines is not that technically demanding," he explained.
He indicated there might be more H1N1-related fatalities in China than reported. "Deaths from preexisting conditions and other complications
180
BPM- Weekly Report # 91 Zone 1-Asia from the virus were not counted here."
•
Education Ministry supports formation of China's "Ivy League" (26th October)
China's Ministry of Education voiced on Monday its support for the formation of C9, an academic conference comprising nine domestic prestigious universities and referred to as China's Ivy League by some experts. Xu Mei, the ministry's spokeswoman, said the establishment of the conference is a "helpful attempt that is conducive to the country's construction of high-quality colleges, cultivation of top-notch innovative talents and enhanced cooperation and exchanges between Chinese universities and their foreign counterparts." On Oct. 12, nine institutions of higher learning including the elite Peking University and Tsinghua Univerisity signed cooperative agreements that featured flexible student exchange programs, deepened cooperation on the training of postgraduates, and establishment of a credit system that allows students to win credits through attending classes in member universities of C9. Other universities are Zhejiang University, Harbin Institute of Technology, Fudan University, Shanghai Jiao Tong University, Nanjing University, University of Science and Technology of China,and Xi'an Jiaotong University. The Ivy League, which comprises eight oldest and finest institutions of higher learning in the United States including Yale University and Harvard University, is known to the world for its academic excellence.
• WHO: China's H1N1 vaccine safe, effective(27th October) The WHO representative in China, Michael' Leary, said yesterday he'd like to get the A/H1N1 flu vaccine made by China as it had proven to be safe and effective. Starting in late September, China has so far vaccinated more than 300,000 people on the mainland against the A/H1N1 pandemic flu and is now gearing up the free vaccination program to be available nationwide. "When it's available to me, I would not hesitate to get the vaccine developed and produced by China," O' Leary told China Daily today. "The H1N1 vaccine is one of the safest vaccines being used," he said. "Serious adverse reactions would be extremely rare if at all and to date, from the data available, the vaccine is safe and effective." However, he also pointed out that nothing is 100 percent safe, including the vaccine, and there is potential of bad side effects from the jab. "Notably, nearly all of the adverse reactions from the shot detected so far were mild and temporary," he added. 181
BPM- Weekly Report # 91 Zone 1-Asia
Considering the risk of the vaccine against that of the diseases, the WHO highly recommends the vaccination. As of Monday evening, China had reported 35,664 A/H1N1 cases, with three deaths. •
President Hu confers Nightingale medals on laureated nurses(27th October)
Six Chinese nurses were awarded the Florence Nightingale medal on Tuesday for their prominent contributions to health care. Chinese President Hu Jintao, who is also the honorary presidentof the Red Cross Society of China, conferred medals on the nurses at the Great Hall of the People in downtown Beijing. Chinese Premier Wen Jiabao and senior leaders including Li Changchun, Xi Jinping and Li Keqiang also attended the awarding ceremony. A total of 28 nurses from 15 countries worldwide won the award this year. The Florence Nightingale medal is presented every two years. A total of 54 Chinese nurses have won the award since the country began to recommend candidates for the award in 1983. • Police nab 5,134 suspects over invoice frauds (27th October) Chinese police have detained 5,134 people in a 10-month national campaign against invoice fraud, Wu Heping, spokesman for the Ministry of Public Security, said Tuesday. A total of 1,045 production sites making and selling fake invoices were closed, and more than 80 million fake invoices were confiscated, Wu told a press conference. In addition, the police arrested 540 people on charges of tax evasion and tax fraud by using fake invoices in coordination with the tax authorities, he said. Fake invoice vendors are common in Chinese cities, where they offer receipts used for tax purposes. Wu said invoice fraud could cause huge losses in tax revenues and would feed illegal activities, such as smuggling, money laundering and corruption. Wu said close to 28.4 million, or more than 35 percent, of all fake invoices confiscated in the last 10 months was seized in the southern Guangdong Province. Police raided two fake invoice production sites in Foshan city in August, and arrested nine people and seized more than 16 million fake invoices. The figure equaled close to two thirds of the total fake invoices confiscated nationwide last year. Wu said fake invoices were most commonly used in the catering and retailing sectors, as they accounted for 51 percent of all fake invoices seized in the crackdown. However, invoice fraud in the construction and transportation sectors had led to much bigger losses of tax revenues. He also warned of invoice fraud by government and government-sponsored institutions, saying "it cannot be dismissed easily." A gang of people were arrested in the central Henan Province in January for making 8,000 fake invoices with a total face value of 1.6 billion yuan (US$234 million). More than 18 percent of the invoices were sold to the local government and governmentsponsored institutions, said Wu. • Mainland reports new death case of A/H1N1 flu(27th October)
182
BPM- Weekly Report # 91 Zone 1-Asia
The Chinese mainland has reported a new death case of A/H1N1 flu, health authorities said Monday. The new death case was found in northwest China's Xinjiang Uygur Autonomous Region, and the patient died Sunday, the Xinjiang Regional Health Department said in a statement Monday. It was also the first A/H1N1-related death case in Xinjiang, the statement said, without providing further details about the patient. Currently, Xinjiang has 153 confirmed patients who had tested positive for A/H1N1 flu and are being treated at hospital or being quarantined at home, the statement said. The disease has earlier caused two deaths on the Chinese mainland -- an 18-year-old woman in Tibet who died on October 4, and a 43-year-old woman who died on October 16 in Tibet's neighboring province of Qinghai. The Chinese mainland had reported 33,064 confirmed cases of the A/H1N1 flu by 3 p.m. last Friday, the Ministry of Health. A total of 26,588 patients had recovered. Fourteen of 44 patients in serious conditions had been cured, the ministry said. China is currently experiencing what experts called "a second round of A/H1N1 flu infection," as recent infections are more widespread and increasing rapidly. The Chinese mainland also reported two A/H1N1-related deaths last Friday, but in one case, a 72-year-old man, the first severe A/H1N1 flu patient in Beijing, died of chronic illnesses even after the flu was cured. In another case, a seven-year-old boy in northeast China's Heilongjiang Province died of seasonal influenza and severe pneumonia. The A/H1N1 strain was found in the flu viruses that infected the first grader at Yingjun Primary School in Suihua City, but it was not yet known if the A/H1N1 flu was the main cause for the boy's death. • Kidneys illegally sold online(27th october) Kidneys are being freely traded on the Internet which is functioning as a medium for sellers and the organ brokers who are gaining huge profits. Internet sites are flooded with people who want to make extra money by offering their kidneys, which can be sold for 40,000 yuan ($5,900) to 60,000 yuan. Two major online forums www.02066.com.cn and www.as.2sun.cn, are operating for organ brokers in dozens of cities across the country, including Beijing, Tianjin, Zhengzhou and Shangqiu in Henan province, Hangzhou in Zhejiang province, Dongguan in Guangdong province, Changchun in Jilin province and Hefei in Anhui province. More than 1 million people need kidney transplants every year in China but only 1 percent of them undergo the surgery because of the nation's organ shortage, according to
183
BPM- Weekly Report # 91 Zone 1-Asia
official statistics. Experts say four out of every five patients die while waiting for a suitable match. Humans are born with two kidneys, but a person is able to live normally with only one. Ministry of Health officials said the trade in human kidneys is illegal, and pointed to the creation of a new database that has been designed to make organs available to the approximately 1 million Chinese waiting for transplants. The database began as a pilot project in some areas, including Shanghai, in September. A broker named Xiao Wei in Beijing said the market needs kidneys from people with A, B, and O blood types. Sellers need to undergo medical testing to prove they are healthy. Fees for physical tests and surgeries are covered by the brokers. However, the purchasers usually have to pay brokers 130,000 yuan for one kidney. "We have connections with hospitals and doctors, so sellers will be safe during and after the surgery," Xiao told China Daily yesterday. Almost all of their transplants in Beijing are done in top hospitals with organ transplant licenses. The purchasers can decide where to have the surgery, he said. An agent surnamed Liu in Xingtai, Hebei province, said he can arrange kidney transplants for foreign patients as well. "I did it for several foreigners and whatever we do will go undetected," Liu said. A 27-year-old man said online in August that he intended to sell his kidney to save his brother's life. "I needed money but I was not able to get 100,000 yuan in a few days," he said. "I heard it's OK with my body to cut out one of my kidneys, so I decided to do it." People who suffer from kidney failure need another kidney that is healthy and matches their blood type. Chen Shi, a professor in medicine at Huazhong University of Science and Technology, said the illegal trade must be banned to protect people's rights. "Organ donations should be greatly encouraged to solve the organ shortage nationwide," he said. • Canada repatriates criminal suspect to China (28th October) The Canadian police has repatriated a Chinese criminal suspect wanted for contract fraud to China, China's Ministry of Public Security (MPS) said Wednesday. Liu Xiaoquan was sent back to China on October 21 by the Canadian police in cooperation with its Chinese counterpart, the MPS said in a report on its website. Liu, a native of southwestern Sichuan Province, allegedly defrauded 400,000 yuan (US$59,000) using a fake contract in March, 2006. He fled to the United States soon afterwards, and to Canada, it said. He had been brought back to Sichuan where local police was conducting further investigations, the ministry said. "The repatriation of Liu showcased the determination and the active attitude of both Chinese and Canadian police to uphold the law and safeguard justice," the MPS said in the report. The MPS would continue to strengthen cooperation with its Canadian counterparts, the ministry said. Canada repatriated Deng Xinzhi, a suspect involved in a 20-million-yuan (US$3 million) swindling case, in August, 2008, after Deng spent five years in the country.
184
BPM- Weekly Report # 91 Zone 1-Asia
In a statement of Stockwell Day, Canada's then Public Safety Minister, Day said Deng's removal underscored the Canadian government's commitment that the country would not be a "safe haven" for fugitives. However, the country still houses a number of Chinese fugitives of economic offences, including Lai Changxing, the leading suspect in the China's most notorious smuggling case valued at US$10 billion. Lai, now living in Vancouver, was accused of masterminding the country's largest smuggling ring. He fled to Canada in 1999. For a long time, China has been seeking his return to face charges of smuggling, bribery and tax evasion. President Hu continues to be honorary chairman of China Red Cross Society (29th October) Chinese President Hu Jintao has been invited to keep the role of honorary chairman of the Red Cross Society of China (RCSC), according to a RCSC conference. Also at the conference, which closed Thursday, Hua Jianmin, vice chairman of the Standing Committee of the National People's Congress of China, was elected new chairman of the RCSC. During Thursday's session, the RCSC approved a decision on a work report submitted by the RCSC council, a decision on the 2010-2014 development plan for the China Red Cross and a decision on funds management. •
• Expert drums up flu shot lest 'endless troubles' (29th October) China's top epidemiologist Zeng Guang on Thursday urged more people to be inoculated against A(H1N1) flu while reassuring the public about the vaccine safety. "If people do not have themselves vaccinated now, there will be endless troubles in the future," Zeng Guang, chief epidemiologist of the Chinese Center for Disease Control and Prevention (CDC), said in an interview with Xinhua. With the number of patients with severe symptoms growing, China's medical treatment capacity, such as equipment and personnel, is to face huge challenges. We need to prepare in advance." He said a peak of the A(H1N1) flu outbreaks in China was expected between this winter and spring. An estimated 400,000 people in China had been inoculated with A(H1N1) flu vaccine and no serious adverse reaction had been reported. "No vaccine is totally risk-free," he said. "But the benefits of such a vaccine is much greater than its risks." A recent survey by popular web portal sohu.com showed that more than 54 percent of the 2,000 respondents said they did not plan to be vaccinated out of the safety concerns over the shot. Zeng said many technologies China used in producing the A(H1N1) flu vaccines were those being used in producing regular flu vaccines. "They are mature technologies." • China presents its universities in Bulgaria (29th October) Over 30 Chinese universities participated in an exhibition on the sidelines of the SinoBulgaria University Presidents' Forum, which opened here on Wednesday.
185
BPM- Weekly Report # 91 Zone 1-Asia
At the exhibition, universities from China, including Tsinghua University, Peking University, and the Beijing University of Aeronautics and Astronautics (BUAA), took the opportunity to showcase their education programs to hundreds of young Bulgarians. "The academic relations between our two countries have a long history. More and more Bulgarians are interested in Chinese language and culture," said Svetlana Lomeva, Deputy Minister of Education, Youth and Science. She also said the forum would strengthen the relationship among the academic institutions of the two countries while exchanges of scientific achievements could foster economic development and better people's living standards. "As the process of globalization comes into full swing, progress in higher education has to be achieved through the path of internationalization," said Professor Tang Xiaoqing, vice-president of BUAA. Maria Fartunova, director at the Bulgarian Ministry of Education, Youth and Science, said China and Bulgaria could implement joint education programs so that students could get double diplomas. The two sides could establish joint scientific and educational centers aiming to develop the academic and scientific partnership and to support the participation in international projects, Fartunova said. Based on the bilateral agreement between the two countries' education ministries, the governments would annually finance 35 Bulgarians to study in universities in China and 35 Chinese students in Bulgarian universities. "We have such agreements with 60 countries. The number of the students exchanged with China is the highest," said Mariana Uzunova, chief expert at the Bulgarian Ministry of Education, Youth and Science. Despite these students enjoying government-financed exchange programs, there were lots of Bulgarian students in China who covered their own expenses, Uzunova said. Bulgarian student Yanis Dyakov was one of those visiting the exhibition. "I study Sinology in the Sofia University. My classmates and I came here to get information about the conditions offered by the Chinese universities because some of us desire to go there next year," he told Xinhua. Fifteen-year-old Ralitsa Guyrova, who studies Chinese language at one of the secondary schools in Sofia, also said she and her classmates wanted to continue their education in China. The forum and the exhibition are part of activities commemorating the60th anniversary of the establishment of diplomatic relations between China and Bulgaria. • China faces "severe challenges" of flu (29th October) China's State Council said Wednesday the country faces "severe challenges" in the prevention and control of A/H1N1 flu after some areas reported a sharp increase in the number of patients infected by the epidemic. Groups of students were found infected by the disease and the arrival of flu season also challenged A/H1N1 flu prevention and control endeavor,said a statement issued after an executive meeting of the State Council. The State Council, or the Cabinet, ordered government departments at all levels to beef up measures to prevent large-scale outbreak of the disease and vaccine producers to
186
BPM- Weekly Report # 91 Zone 1-Asia
speed
up
their
production.
Efforts should be made to prevent and control A/H1N1 flu in schools and avoid assemblies in such places, according to the meeting, which was chaired by Premier Wen Jiabao. The State Council also required intensified efforts to promote public awareness and urged health authorities to make public A/H1N1 flu information in a timely, open and transparent manner. A freshman at the Beijing University of Aeronautics and Astronautics had tested positive for A/H1N1 flu and died Tuesday, bringing the death toll of A/H1N1 flu on the Chinese mainland to four, health authorities said Wednesday. • 50% of new expats leave China early (30th october) Almost half of new expatriates leave China early because they have difficulty adjusting to the lifestyle, a consultancy firm said. China Transition Institute (CTI) president David Israel-Rosen said most foreigners are unprepared for what life will be like when they arrive in China. "It is moving from the West to the East," he said. "It is not like moving from Chicago to Denver." "If you look at the literature, between 30 percent and 50 percent of expats go home early. The failure rates are astonishing." Alan Kahn, vice president of marketing and communications for United Family Healthcare, said identity loss and depression are more widespread than many people realize. "These are very real issues and they do have a significant impact," Kahn said. "It is very hard to ever fit in fully and that can cause lots of serious problems," he said. Jessa Parkman, a 28-year-old nurse who recently arrived in Beijing from Baltimore said she misses her family and is worried about losing job skills she spent years acquiring if she cannot find a similar position here in Beijing. "It is very debilitating to be at home and not be so independent," Parkman said. "I just feel very helpless at times and very dependent on other people. It is a struggle to get my bearings." Last Saturday, Parkman and her husband attended expat boot camp, which is run by the CTI, and offers basic survival training for expatriates. Cheryl Smith, a psychologist with International SOS China, said spouses of executives who have been assigned to China can have the hardest time adjusting. "They feel a big emptiness and imbalance," Smith said. "I see a lot of alcoholism with expat women. I see a lot of depression. I see anxiety disorders and lots of marital issues." "There are many who have marital issues," Smith said. "They don't have enough time with their partner and there are also lots of infidelity issues that I see." Jasmine Keel, managing director of Inspired, a Beijing-based life and transition support company, said it is important to find an outlet for frustrations. "It is hard when the spouse used to have a very strong professional identity. Maybe she was working so she had a professional world. Maybe she also had a very strong circle of
187
BPM- Weekly Report # 91 Zone 1-Asia
friends so basically when she moved a lot of the world that she had disappeared," she said. Helen Zhang, co-author of "Think Like Chinese," which explains Chinese thought and business culture from a Chinese perspective, said: "When you communicate with the Chinese, if you are open-minded and observant, there are clues you can pick up". "There are many ways for Chinese to say 'no' even including 'yes,'" Zhang said. "We think totally differently." Israel-Rosen said the CTI would expand the workshop to a week-long boot camp offered in a number of Chinese cities as well as abroad sometime early next year. "There is nothing fancy about what we are talking about," Israel-Rosen said. ""We are talking about basic survival." • 3.46M students benefit from Project Hope (30th October) Project Hope, a Chinese program aiming at financing education for poverty-stricken students, has benefited more than 3.46 million rural students since its establishment in 1989. China Youth Development Foundation (CYDF), one of the chief organizers of the project, said in a statement Thursday that domestic and overseas donations for the project surpassed 5.67 billion yuan (US$830 million) in 20 years. The project was initiated by the CYDF and the Central Committee of the Communist Youth League of China on October 30, 1989. Nearly 16,000 primary schools have been built in rural areas through the project and 80 percent of them are in the country's western, central and northeastern regions, where economic development is relatively backward. "Without the project, I could have been denied secondary education in high school. Project Hope changed my life," said Su Mingjuan, a beneficiary of the project. The project also sought to improve educational environment in schools by contributing donations to build libraries, digital equipment, and sports and music facilities, according to the CYDF statement. • China's "father of space technology" dies at 98 (31st October) China's keystone space scientist Qian Xuesen, widely acclaimed as the country's "father of space technology" and "king of rocketry", died of illness here Saturday morning at the age of 98. In 1956, based on Qian's position paper on the country's defense and aviation industry, the central government set up an aviation industry committee, which later became the leading organization for China's missile and aviation programs. Under the guidance of Qian, also known as Tsien Hsue-shen, China finished the blueprint on developing jet and rocket technology. He also played a significant role in developing the country's first artificial earth satellite. "Mr. Qian used to hold academic seminars for us. We exchanged scientific ideas and wrote articles together. The whole time when we worked with Mr. Qian had a great influence on us," Yu Jingyuan, a senior researcher with the China Aerospace Science and Technology Corporation told Xinhua Saturday afternoon on hearing the news. In one of Qian's legendary stories, a missile project team encountered repeated failures during the engine experiments in 1950s. Team members couldn't figure out what was
188
BPM- Weekly Report # 91 Zone 1-Asia
wrong and turned to him. In a meeting, Qian paced around the room, listened to everyone's ideas and ask them further questions for about 40 minutes. He then hinted the team that they should take into account the high-frequency vibration when the engine was running. He was right. In June 1964, China successfully created its first medium- and shortrange missile, marking the start of the country's first missile defense system nuclear weapon. During the man-made satellite project, when everyone else was not sure that the satellite would work perfectly in space given the limited testing facilities, Qian researched piles of documents and papers and wrote, "In my opinion, the satellite is done." On April 24, 1970, "Dongfanghong-I (Red East 1)", the country's first man-made satellite, was successfully launched. Yu Jingyuan said Qian had very deep understanding of his own profession and also had a wide knowledge regarding many other fields. "He was a true science leader and master with brilliant scientific and philosophic thinking." Qian, a member of both the Chinese Academy of Sciences and the Chinese Academy of Engineering, graduated from Shanghai Jiao Tong University in 1934. In 1935, he went to study in the aviation department of the Massachusetts Institute of Technology and later studied aviation engineering at the California Institute of Technology. In 1939, he received a doctorate in aviation and mathematics. In 1947, 36-year-old Qian was already a professor at the Massachusetts Institute. According to his son Qian Yonggang, the Kuomintang once invited Qian to come back but he refused. He returned to the mainland after the new China was founded. However, Qian's road home was not smooth. Documents show that amid the McCarthyism in the 1950s, allegations were made that he was a communist who stole confidential information about the U.S. government. Qian was put in prison for 15 days, followed by a 5-year house arrest under surveillance of the Federal Bureau of Investigation. In June 1955, a letter from Qian managed to get out of the U.S. border and finally reached then Premier Zhou Enlai, resulting in Sino-U.S. talks which led to his release. Together with his wife and two children, Qian sailed for more than a month before arriving in the mainland. On the official BBS of the Shanghai Jiao Tong University, where Qian majored in mechanic engineering from 1929 to 1934, many alumni still couldn't believe the news while replies to the posts soon topped 850 in six hours. Many regarded his death as "a superstar fell" and expressed their blessings for him -"Dear Mr. Qian, rest in peace. We will never forget your achievements." According to the Shanghai Jiao Tong University Press, the press is currently compiling a picture album of Qian and a collection of his writings based on 800-plus-page documents retrieved from the U.S. National Archives, which include details about his encounters with the U.S. government and his trip back home. The picture book will be released soon and the writing compilation is due to come out in next spring. Although Qian, a Hangzhou native in east China's Zhejiang Province, had long been a Beijing resident, his hometown friends feel close to him.
189
BPM- Weekly Report # 91 Zone 1-Asia
In one of the most popular local web portal "19 lou", more than8,000 visitors read the news in three hours. "Masters, you've always been the mental support for us post-70sgeneration but one by one you're gone... Our country needs more masters like you..." wrote a netizen named "sheliqiang" in a hundred-word reply. On Saturday, a documentary about Qian, produced by Xinhua, has been broadcast on the Internet and the agency's TV channel. Taiwan's Eastern Television will also air the program on Saturday evening. "He was a 'people's scientist' with firm political belief and pure moralities," researcher Yu Jingyuan said. Ethnic issues Environmental front • Solar industry is reined in(26th October) China is attempting to rein in overcapacity in the country's solar energy sector despite the government's ambitious goal to increase solar capacity from 50 megawatts in 2008 to between 10 and 20 gigawatts by 2020. Enterprises flocking to boost markets in industries such as steel and cement have been common in recent years, with the government then stepping in to correct potential overcapacity. The central government last week announced plans to curb the expansion of six industry sectors by withholding approval for new investments and tightening financing.
Surprisingly, considering its role in the fast-growing renewable energy sector, polysilicon, which is used to make solar panels and wind power equipment, was included in the industry sectors targeted by the government. China will order commercial banks not to finance projects in the targeted sectors, the National Development and Reform Commission (NDRC), along with 10 ministries, said in a statement.
190
BPM- Weekly Report # 91 Zone 1-Asia
The China Securities Regulatory Commission, the country's capital markets watchdog, also will review applications from the country's solar energy firms for fundraising activities such as issuing additional shares and private share placement. According to local media reports, the commission is likely to reject such proposals. The move was triggered by fears of overcapacity in the sector. A government document showed that China's polysilicon production capacity is 20,000 tons a year, with an output of about 4,000 tons in 2008. Projects designed for an annual production capacity of 80,000 tons are under construction. In 2008, solar cell production in China accounted for 40 percent of the global output. Seven of the world's top 15 solar cell manufacturers are Chinese companies. Chen Bin, chief director of the NDRC's industry coordination department, said another reason polysilicon was targeted is because of the high energy costs involved in production of the wafers. Electricity expenses account for 35 to 40 percent of the total cost to produce polysilicon, he said. "Currently, the domestic solar energy sector has not yet started up extensively, but 98 percent of the solar cells, which use domestically produced polysilicon, are exported equivalent to exporting large stores of energy indirectly," Chen said. Apart from driving down prices and profits, overcapacity also tempts Chinese manufacturers to sell their excess output overseas. As a result, trade tensions are high with the European Union over Chinese exports of steel and tires and also possibly over Chinese solar energy products, according to reports. Some US and European solar firms reported suffering declines in demand because Chinese competitors wanting to expand their market share in Western countries had forced down their prices for polysilicon. The chief executive of German manufacturer Conergy AG claimed that Chinese prices are close to what other countries consider "dumping". This month's guidelines followed overcapacity instructions issued last month by the State Council. The government's actions also point to concerns that too much of China's 4 trillion yuan economic stimulus package is finding its way into industrial sectors, rather than infrastructure, affordable housing, rural development and technology upgrades. Suntech's story Visiting the high technology zone in China's eastern city of Wuxi near Shanghai, guests are impressed by the massive 6,900-sq-m solar energy panel outside the new headquarters of Suntech Power. The facility's one-megawatt solar facade is the world's largest grid-connected, buildingintegrated solar system, according to Suntech, the world's largest solar module manufacturer. Suntech has benefited from the Chinese government's subsidies for solar photovoltaic rooftop installations and construction of solar energy plants - known as the "Golden Sun" program. Suntech reported $321 million in revenues for the second quarter this year, up from $315.7 million in the first quarter, according to the company's second-quarter statement.
191
BPM- Weekly Report # 91 Zone 1-Asia
Suntech, listed on the New York Stock Exchange, also helped Shi Zhengrong, its founder, chairman and CEO, to become one of the country's wealthiest people. His picture was on the cover of the US newsmagazine Time just six years after the photovoltaic and renewable energy expert graduated from the University of New South Wales and began his new career in the country of his birth. The Suntech story has encouraged more companies to join the solar power energy field, including Sunvim, a Zhejiang-based textile maker known for one of the country's popular towel brands. The government has put in place two significant subsidies for solar photovoltaic installations. Through the "Golden Sun" program, the National Energy Administration and ministries of Finance, Science and Technology are offering to subsidize half of the construction and connection costs of on-grid solar power plants and 70 percent of the cost of off-grid installations from now until 2011. The program's goal is to produce 500 megawatts of solar power. An earlier plan established subsidies for rooftop demonstration projects. In addition, many local governments have solar subsidy programs of their own. Not surprisingly, these initiatives have spurred more companies to enter the solar sector. Fifty-plus firms According to domestic media reports, more than 50 solar companies from 20 provinces including Sichuan, Hunan, Jiangsu and Zhejiang - are constructing or expanding polysilicon production lines. The overall construction capacity has reached a potential 100,000 tons. Zhejiang Yuhui Solar Energy Chairman Li Xianshou expressed his concerns about the oversupply situation. "There was huge production capacity last year, but how much is qualified? Many enterprises will face the possibility of being push out," Li said. Still, the first half of 2008 was a profitable time for many polysilicon producers. "During that time, the polysilicon supply fell short of demand, and sometimes buyers couldn't get orders even if they delivered full payments first," said a sales manager at a polysilicon company based in Zhejiang. The sales manager said his company's supplies would empty overnight during busy times. In Zhejiang, the traditional textile manufacturing hub of Jiaxing, is turning itself into a polysilicon manufacturing hub. "It requires 100 million yuan for a startup in the solar photovoltaic industry," said Shen Fuxin, general secretary of the Zhejiang Solar Energy Industry Association. "But many companies were still scrambling to come on board, as the industry's average profit return could reach 20 percent or 30 percent," Shen said. However, the solar manufacturing industry has been hit hard since the end of last year due to a freeze in credit resulting from the global financial crisis, as well as an oversupply of solar panels that have sharply reduced prices. The government's new guidelines to curb the solar industry's oversupply might push newcomers or small players out of the market, but apparently won't affect the major players, sources said. Yingli Energy Group, one of China's leading solar cell manufacturers, is reporting increased sales this year.
192
BPM- Weekly Report # 91 Zone 1-Asia
"We saw shipments increase quickly since the middle of this year," said a sales manager from Yingli who declined to be named. He said the government's crackdown on oversupply will negatively affect small companies, but added that large companies will continue to win market share because of brand reputation. • China, US will grow solar power competition (26th October) The United States and China are in a head-to-head race to become the world's top market for solar power. Solar panel makers are wasting no time making plans to cash in on the growth promise of both markets despite the global recession. At the recent Reuters Global Climate and Alternative Energy Summit, Chinese and US solar companies including Suntech Power Holdings Co Ltd, SunPower Corp, Trina Solar Ltd and BrightSource Energy Inc laid out plans to capture their share of what is expected to be explosive demand for solar-generated electricity in the world's biggest and thirdlargest economies. The US and China lag far behind Europe in demand for solar power, but are expected to vault ahead in the next few years as both countries work to curb their emissions of greenhouse gases that contribute to global warming. This year, Washington and Beijing have both rolled out programs designed to grow their fledgling solar power industries and thus boost growth in their economies. Together, they are expected to drive the building of at least 5 gigawatts (GW) of solar installations between 2009 and 2011, according to a recent report by investment firm CLSA. Thanks to strong government incentives, Germany is the world's biggest solar market and is expected to remain so until 2013, when the United States will become its equal. China will be slightly behind, according to the research firm Lux Research. In China, recently enacted subsidies for utility-scale solar power projects have prompted a host of plans for solar power plants. US solar in China Those plans include the recent announcement of the first major foray by a US company into the Chinese solar sector by Arizona-based First Solar Inc. That announcement, said spokesmen for several US companies, opens the door for other non-Chinese companies to compete in China's solar market. "It clearly makes us more bullish on China," said Tom Werner, chief executive of California-based SunPower, which already produces some of its high-efficiency solar panels in China. "We hope that that will result in us being able to penetrate that market, as well," Werner said. BrightSource Energy CEO John Woolard said the First Solar deal showed the Chinese were serious about solar. Woolard said his company expects to announce a Chinese partner in about year. First Solar's announcement also could quell complaints from some European solar companies that Beijing's support for its solar manufacturers was giving Chinese companies an unfair trade advantage over European and US companies vying for market share in the global sector.
193
BPM- Weekly Report # 91 Zone 1-Asia
"If you announce that we have such a huge need for solar panels that we are even going to put First Solar panels into China, all of a sudden we've gone from this massive threat to maybe we saw it the wrong way around," said Stephan Dolezalek, managing director of the California-based venture capital firm VantagePoint Venture Partners. "Maybe we should see the size of the Chinese market as this enormous upside potential, and maybe all of solar should be seeing it much more positively," Dolezalek said. In the United States, economic stimulus funds to fill the solar funding gap left by the financial crisis have been slow to materialize this year. Nevertheless, companies like Suntech and SunPower expect government funds to boost the market next year, with Suntech saying the US solar market could triple in 2010 from about 350 megawatts this year. "We do think the United States could be a very, very strong market," Suntech Chief Strategy Officer Steven Chan told the Summit. The Obama administration's loan guarantees and grants for solar "set the stage for a great 2010", Chan said. China's top solar company, Suntech, is setting up its first manufacturing plant in the United States and has narrowed the potential locations to Arizona and various cities in Texas, said Suntech's Chan. Suntech plans to start production at the 50-megawatt plant in the second half of 2010. US-based SunPower said it would start producing solar panels in its home country next year to be closer to major solar markets like California. "In terms of megawatts, it will represent a meaningful amount of our panel production, say up to a quarter of our total panel production," Werner of SunPower said. Smaller Chinese companies are looking at the US market, too. Trina Solar, a solar panel maker based in Changzhou, is actively seeking partnerships with project developers in the United States to join the race for big contracts. "Honestly, we lag behind," Trina Chief Financial Officer Terry Wang said. •
China expected to complete world's first land cover map of Antarctica (26th October)
Chinese scientists from the country's 26th Antarctic expedition are expected to complete the world's first land cover map of the Antarctica at the end of this year. It will be the most accurate map of the continent, presenting various land features, they told Xinhua correspondent aboard Xuelong (Snow Dragon) icebreaker in a recent interview. The research team will conduct wide range of field spectral collection on the Antarctica to provide data for the map. The map, with the application of high resolution remote sensing technology, will for the first time in the history show the distribution of key features on the continent, including sea ice, snow, blue ice, rocks, soil marshes, lakes and ice crevasse. Remote sensing technology is one of the most effective ways of mapping. It has been
194
BPM- Weekly Report # 91 Zone 1-Asia
widely used in China's polar expeditions during the past decade and has made great contributions to Antarctic studies in the fields of mapping, biology research and communication. The map is also based on 1,073 remote sensing images acquired from the U.S. satellite Land sat mainly during the austral summer from 1999 to 2002, Cheng Xiao, deputy dean of the College of Global Change and Earth System Science, Beijing Normal University, told Xinhua via email. "The precision of the map is 15 meters, about 20 times of former Antarctic maps made by other countries," Cheng said. "It will greatly advance our geographic knowledge of the Antarctica." The map will provide not only more accurate ground parameters for scientists to forecast global change or global warming with climate system models, but also important data for detection on the change of Antarctica land cover in a long run, Cheng said. The 26th expedition team began its journey on Oct. 11 from Shanghai and sailed into Australia's Coral Sea on Sunday. A total of 251 scientists, workers and logistics staff joined the team for the half-year-long research expedition on the icebreaker. The scientists will stay on the icy continent until April 10 next year. Regional report North Politics • PLA to enlist at 13 Beijing private colleges (30th October) Students at 13 private universities in Beijing will become eligible for recruitment into the People's Liberation Army (PLA) for the first time this year. A statement from the Beijing Municipal Commission of Education said private university students could apply to enlist in the PLA directly. This brings the total number of Beijing higher education institutions that are open to direct recruitment to 88. The other 75 are all state-run colleges. Recruiting stations in Beijing reportedly have received applications from about 2,500 college graduates and 600 undergraduate students. If recruited, every graduate soldier is eligible for a one-off refund on their college fees of up to 15,000 yuan (US$2,000). This was one of the preferential policies announced this year to encourage Chinese graduates to enlist. They will have more opportunities on promotion and enrolment in military academies. After finishing two years of compulsory service, they are promised preference with the police and other law-enforcement agencies. The PLA usually recruits men aged 18 to 20 and women aged 18 or 19, but the age limit can be raised to 24 for those with bachelor degrees.
195
BPM- Weekly Report # 91 Zone 1-Asia
The PLA previously relied mostly on high school graduates and the unemployed, although all males aged 18 to 22 are nominally obliged to undergo two years of service according to the country's conscription law. Most college students just take part in a month of military training, usually in their first month of campus life. China's State Council, or Cabinet, revised the government's recruitment regulations in September 2001 to enlist college students for the first time in a pilot scheme. More than 2,000 students were recruited that year. The move to recruit more college graduates has been seen as a step to strengthen the PLA's technological expertise. A Defense Ministry survey in July found that 1.44 million male graduates expressed interest in military service. Social front • PhD holder jailed for selling skulls(27th October) A Chinese American with a PhD has been sentenced to 8 years jail for buying and selling human skulls. Ding Wen, 44, was also fined 300,000 yuan ($44,000) by Beijing No 1 Intermediate Court on Sept 21, his lawyer Zhao Yunheng said yesterday. Zhao said Ding began buying human skulls in 2004 at Panjiayuan Flea Market. He then contracted craftsmen to carve pictures on the skulls, and sold the carved ones overseas at higher prices. From August 2006 to February 2008, Ding bought 1,300 human skulls from two farmers in Qinghai province at a price of 80 to 160 yuan ($12 - $23) each. He sold more than 200 human skulls overseas and made $19,000, the Beijing Times reported. Zhao said Ding has appealed his conviction for the offence of illegal business operation to the Beijing High Court and the hearing will be held in about three weeks. Ding, a consultant with a Beijing-based information consultancy firm, lived in Changping district, and was arrested on June 3 last year. Police found more than 1,100 human skills in the garage of his villa during a subsequent search of the property. About one month earlier, the Beijing office of United States Federal Bureau of Investigation sent a letter to Ministry of Public Security which read: "We have found unknown human skulls in parcels posted to America from Beijing through EMS. Please assist to investigate the related situation," the Beijing Times reported yesterday "Ding's behavior was not only a desecration of the dead and contrary to human ethics, but also seriously disturbed the market order," a press officer at the court surnamed Guo said yesterday. In his defense, Ding admitted to the court he collected human skulls but said it was for his own collection or as gifts for friends, not for a profit. Zhao said human skulls are not commodities and don't have commercial value in Chinese markets, so even though Ding violated the country's law, he didn't disturb the country's economic order. So he shouldn't have been convicted of operating an illegal business. Zhao said Ding's behavior was not ethical and did not show respect for the dead.
196
BPM- Weekly Report # 91 Zone 1-Asia
Hong Daode, a professor of law at China University of Political Science and Law, said: "If Ding did benefit from selling the carved skulls overseas, he should be convicted of illegal business," he said. Ma Weidu, a famous collector said: "It's not appropriate to collect remains of human bodies, because it hurts the dignity of the dead." • H1N1 flu cases explode in Beijing(29th October) Beijing has recorded nearly 60 percent more A/H1N1 flu cases over the past week, said the municipal health bureau Thursday. The bureau said the city has recorded 1,299 cases during the period, up 58.61 percent, and 6,196 such cases involving 3,727 men and 2,469 women so far. Beijing saw its first death of A/H1N1 flu, also the fourth on the Chinese mainland, on Tuesday. The patient, a university freshman, and some other schoolmates developed fever and other flu symptoms during a compulsory military training in the past week in Daxing District in suburban Beijing. Fang Laiying, director of the health bureau, said high chances of infection of A/H1N1 flu and severe symptoms were normal because the general public are not immune to the flu and the possibility of more deaths could not be ruled out. In Shanghai, the local government and health bureau said the number of A/H1N1 flu cases was increasing, but at a steady pace. The city has recorded 1,278 cases so far, including two serious cases, and 1,107 patients have been cured. Both Beijing and Shanghai have begun providing free vaccination against the disease for students, teachers, medical personnel, police and others. Shanghai has so far provided free vaccination for 41,618 people, and 58 of which reported suspected minor side effects. Experts in Beijing and Shanghai called upon the public to take vaccinations. China's State Council said Wednesday the country faces "severe challenges" in the prevention and control of A/H1N1 flu after some areas reported a sharp increase in the number of patients infected by the epidemic. The State Council, or the Cabinet, ordered government departments at all levels to beef up measures to prevent large-scale outbreak of the disease and vaccine producers to speed up their production. • Plans to rebuild damaged CCTV building under way (29th October) The chief architect for the new headquarters for China's state broadcaster said Wednesday that preparations are under way to begin reconstruction on part of the complex that burned in a massive fire triggered by illegal fireworks earlier this year. Architect Ole Scheeren said in an interview with the Associated Press that the high-level investigation into the fire that damaged a China Central Television building is "almost near its conclusion" and plans are under way to begin rebuilding soon. "The reconstruction has not yet officially begun," he said. "However preparations are underway for the start, but no specific date has yet been set." Rows of scaffolding are now visible around the perimeter of the charred tower, though no workers have been spotted on the site.
197
BPM- Weekly Report # 91 Zone 1-Asia
In February, the 520-foot (159-meter), 44-story building, known as the Television Cultural Center, was engulfed in flames after an illegal fireworks display arranged and paid for by CCTV to mark the end of the Lunar New Year festivities. One fireman died fighting the blaze. The building had housed the nearly completed luxury Mandarin Oriental Hotel, television studios, an exhibition space and a visitors' center. It's part of the same 5-billion-yuan ($735-million) complex that houses the iconic, futuristic-looking CCTV headquarters designed by Scheeren and famed partner Rem Koolhaas. The stunning complex, which helped transform the capital's skyline for last year's Olympics, had served as a monument to CCTV's rising ambitions. Scheeren said preliminary findings indicate that the main concrete structure of the firedamaged building does not have to be torn down. The main CCTV building itself was not damaged, he said. "The preliminary findings are that the building can be repaired," he said, "It's still intact and safe. There will mainly be a repair effort but not a complete rebuilding." Scheeren said there is no truth to rumors that the two buildings were interconnected and served as a counterweight for each other. "The two buildings are completely unrelated structurally. There's no connection between them. I think it's very important to dispel this kind of story that the two buildings are connected and one depends on the other. That's absolutely not true," he said. Scheeren gave no further details on a timeline for the reconstruction. But he said his firm OMA is continuing work on the main CCTV headquarters and expects to be completed by next year. "On the construction, the interior fit-out on the building, we're looking at completion of that sometime next year," he said. • Students released from flu-ridden camp (30th October) Freshmen from Beihang University at a military training camp in south Beijing's Daxing district, where one student died Tuesday from A(H1N1) influenza, were permitted to leave yesterday. Students who had passed the health screenings started exiting yesterday morning and were collected by private cars outside the camp near Weishanzhuang Township. A freshman from the School of Aeronautical Science and Engineering died from the flu virus early Tuesday morning. Symptoms had reportedly been spreading since last Thursday. A total of 71 students at the camp of 3,000 failed the camp's medical check, with 28 students being confirmed to have contracted the virus and sent to Daxing People's Hospital. No new cases were reported among students yesterday though, according to the hospital's fever emergency department. Students are now wearing facemasks on the university campus. They were asked yesterday to start recording their daily temperatures. University authorities also disinfected the building and dormitories where the dead student lived. The university sealed off the venues for its biannual science competition, in which more than 4,000 visitors from universities nationwide are participating.
198
BPM- Weekly Report # 91 Zone 1-Asia
"All departments should avoid holding multiple person activities, and the school will ensure disease prevention measures are carried out during this year's science competition," the university said, in a statement on its website yesterday afternoon. Jia Jinzhao, a competitor from Qinghai University in west China, said Beihang university provided them with facemasks yesterday but he did not wear his. "I study veterinary science and I know the H1N1 flu virus will not kill a person unless you have other serious diseases," said the student, who will stay on campus for one week. "The death does not worry me," he told METRO. No new serious infections of the H1N1 flu virus have been reported in Beijing recently, but flu patients continue to flood hospitals. The Beijing health bureau confirmed there have been 6,196 cases of H1N1 influenza in the city so far. Sinovac Biotech, which produces the world's first vaccine against the virus, has been asked by the Ministry of Health to produce another 5 million vaccines by Dec 12. • Wen visits H1N1 patients, medical staff (31st October) Chinese Premier Wen Jiabao (R2) talks with patients at the Beijing Children's Hospital in Beijing, capital of China, Oct. 31, 2009. Premier Wen visited A/H1N1 patients and medical staff at the Beijing Children's Hospital in Beijing Economic front • Shanxi merging collieries amid work safety concern(26th October) The first group of 19 merged collieries in Shanxi province have got business permits recently from authorities, a significant progress of the region's largest-ever restructuring campaign in an effort to improve work safety conditions and production capacity of the industry. About 97.9 percent of all the 2,598 involved coal mines have signed merging deals and the issuance of new business licenses are in full swing, the provincial administration of land and resources and coal industry told Xinhua on Sunday. Shanxi, China's leading coal production base that has suffered frequent fatal mining accidents, is expected to see the eradication of all small mines with an annual production capacity of below 300,000 tons by the end of the year -- the scheduled deadline. By cutting off about 60 percent of its existing coal mines, the province will finally have 1,053 collieries, 20 percent are state-owned firms, 30 percent are privately-run companies and 50 percent with mixed ownerships. All the merged coal mines must adopt mechanized mining, which will greatly raise output and reduce workplace fatalities. According to the plan, Shanxi is expected to have four coal mine groups producing more than 100 million tons of coal a year, three groups with an annual output of more than 50 million tons and 83 companies whose production capacity range between about 3 million tons a year to more than 10 million tons, said Wang Shouzhen, director with the provincial administration of coal industry. Xue Deping's Xiaoyi Dewei Coal Mine was merged by the state-owned Shanxi Coking Coal Group Co Ltd in July and he now holds 49 percent of the shares of the new company, which officially started operation on Oct 11. "I'm now standing on a development highland after the cooperation with a giant of the industry," said Xue.
199
BPM- Weekly Report # 91 Zone 1-Asia
The merge could help private companies to survive as it introduces advanced production technologies and management methods, he said. Four professional mining departments, six technological and logistics sections were established and many outdated mining facilities had been replaced. "I've never dreamed about such production conditions before," said Xue. The government of Shanxi initiated the campaign late last year with the approval of statelevel authorities amid the global economic downturn. The move has demonstrated positive effects as the province registered 159 deaths in 45 coal mine accidents between January and September this year, or 28 percent and 62 percent less than the same period of last year respectively, according to Miao Huanli, an official with the administration. The move also led to more coal output and revenue. Statistics from the administration showed that coal mines produced 430 million tons of coal in the first three quarters of the year, turning in 45.47 billion yuan ($6.66 billion) in revenue, up 6.4 percent over that in the same period last year. • Investors to sue 11 renowned banks(27th October) A group of 30 millionaires plan to sue 11 foreign banks including ABN AMRO, DBS, HSBC, and Citibank in Beijing, claiming those banks cheated them into buying complex financial derivatives which led to losses of more than HK$1 billion yuan ($129 million). Lai Jianping, a partner of the Transking Law Office in Beijing and director of a so-called 'Victims Association of Discount Stock", told METRO yesterday there are 30 members in his association, including some living in Taiwan and Hong Kong. "We had a total loss of HK$1 billion," he said. Lai said the group filed lawsuit applications in 4 Beijing courts but were yet to receive a reply. The group wants the bank to compensate their losses. Members of the group were once considered wealthy in China, but they say that their personal assets shrank after buying "KODA" (Knock Out Discount Accumulator), a complicated derivative that investors get by signing a one-year contract with banks to buy an agreed amount of Hong Kong stocks at a fixed price. Lai said he lost more than HK$21 million in 1 year, with an initial investment of HK$ 4 million. DBS China issued a statement yesterday, saying the case was before the court and that DBS did not comment on ongoing cases. The KODA product was only sold outside the mainland and the mainland operation has never sold or participated in sales of KODA products. It also said DBS has been following regulations and will take legal action against any false reports. Lai said if the KODA victims file a case in Hong Kong, they must pay millions of Hong Kong dollars in lawsuit fees because they are not residents, so they decided to sue the banks in a Beijing court, which is the cheaper option. "We have almost gone bankrupt, and we cannot afford it," Lai said, "The only hope we have is placing the case in mainland courts." Lai alleged that in June 2007, he met an investment advisor named Zhang Ning in ABN AMRO Bank's Hong Kong branch. Zhang allegedly promised "an investment return of no less than 20 percent" annually and asked Lai to sign an English contract.
200
BPM- Weekly Report # 91 Zone 1-Asia
"She repeatedly said that buying discount stock was more profitable and more rewarding for investors, but never ever mentioned its intrinsic risk," Lai alleged. "It's a cheat!" he alleged. Zhang Yin, professor at the University of International Business and Economics, said according to Hong Kong law, sales people should provide their clients with a clear risk warning of those high-risk financial products, and they could only sell this kind of product to professional investors. "Actually, most victims cannot be called investors at all, as some of them had never bought stocks before," Lai added. Lai said that according to contracts with the banks, the victims bought a certain amount of discount stock. When the stock price rose to an appointed level, for example, a 3 percent increase, the contract ended. But when the price sank, the foreign banks asked clients to put additional deposits in their account, or allegedly cleared their account by force. ABN AMRO declined to comment yesterday. • Govt sued for not delivering $2.4m investment prize money (30th October) A lawsuit against the Xingtai city government in Hebei province for not handing over 16.5 million yuan ($2.4 million) in investment prize was heard at the Xingtai Intermediate People's court Monday, China Youth Daily reported. In 1999, the government of Xingtai promulgated a notice saying people who introduced inbound investments would be granted a prize valued at 1% to 2.5% of the total investment volume. In the updated notice in 2003, the rule was kept. The plaintiff, Han Jie, said he introduced a Hong Kong corporation to invest 1.65 billion yuan in the city to build a coking factory and a chemical plant. According to the notice, he deserves a prize of at least 16.5 million yuan. The government said the rule stated introducers could be granted 1% to 2.5% of the total investment, but it does not necessarily mean they must pay him the amount of money. Court official Su Tianzhi said this is the first case in Hebei province that a local government is sued for not giving out investment prize. "In this case, we still prefer negotiation, and will work hard to reach a settlement out of court," said Su.
Northwest Politics Social front • Police seize 12 homemade pistols in northwest China (27th October) Police have seized 12 homemade pistols in northwest China's Qinghai Province and arrested five suspects, the provincial public security department said Tuesday. Police in Hualong County, acting on tips, captured the five Saturday morning who were in the middle of a transaction on the roadside. They seized 12 pistols in imitation of Type 64 and 32,400 yuan (4,743 U.S. dollars) of illicit money, a department officer said.
201
BPM- Weekly Report # 91 Zone 1-Asia
Police also seized three motorbikes used by the suspects for the trading. The case is under further investigation. The department officer did not give further details on the case. Possession of guns is illegal in China. According to the country's Criminal Law, those who manufacture and trade in guns illegally shall be sentenced to 3-10 years in prison, or even death in serious circumstances.
Economic front Northeast Politics Social front • 1,000-year-old roofed wooden arch bridge-- Wan'an Bridge in Pingan, China's Fujian (29th October) Bridges are not just for crossing rivers in Pingnan, they are icons of the little-known county in northeast Fujian province. Locals claim that Pingnan was once home to more than 100 of these distinctive wooden bridges that were recognized by UNESCO in September as an intangible cultural heritage Currently, there are just 15 of the bridges, two of which have just been rebuilt. The 1,000year-old Wan'an Bridge is the oldest and the longest wooden bridge in the country, measuring 98.2 m. The other remaining bridges have been renovated and still play a significant role in village life. Every day you can see streams of villagers pouring across, tools in hand. When they have leisure time they chat or play chess on the bridges, while their buffaloes chew grass on the river's bank. On summer nights, some villagers sleep on the bridges because it is cool and free of annoying mosquitoes. Bridges here are often connected with religion and there is a local saying that: "Where there is a bridge, there is a temple." It is usually located at one end of the bridge and has either Buddhist or Taoist gods, but some villagers worship gods originating from local folktales. In a temple next to Wan'an Bridge, for example, there is a statue of the Monkey King, the main character from the classical Chinese novel Journey to the West. There are also some shrines on the bridge, but believers have to be careful when they burn incense as several bridges have burned down. The most recent fire was in June 2006 when Baixiang Bridge, which dated back to the Song Dynasty (960-1279), was destroyed. The local government is considering rebuilding it. Built without a single piece of metal it takes several months to build a bridge. First, a feng shui master will choose the location. It is said that bridges built upstream of a settlement help repel evil, while those built downstream will help accumulate wealth.
202
BPM- Weekly Report # 91 Zone 1-Asia
Ancient Chinese people believed gods exist everywhere in wild nature, so before they cut down trees to build their bridges they would offer sacrifices to the gods of the mountain or forests. Construction usually started in autumn, when water levels are low and before starting work, the river gods were propitiated. When a bridge is completed a ceremony is held and the workers sing together. After the ceremony, a local villager who is recognized for having good luck is asked to cross the bridge first, in order to bring good fortune to everyone. The person in charge of construction is called "main rope" while his assistant is the "assisting rope". They are the only ones to have their names printed on the bridge's main beam. Huang Chuncai, 74, is the youngest "main rope" in Pingnan. Both his father and grandfather were "main ropes". He learned the skill from his father when he was 15 and became a "main rope" in his 20s. Huang built his last bridge in 1969 and after that wooden bridges were gradually replaced by concrete ones. In 2005, however, Huang was brought out of retirement when the local government relocated a wooden bridge built in the Qing Dynasty (1644-1911). He has been engaged in various renovation projects since then. Huang is passing down his skills to his two sons. Traditionally, the knowledge can only be passed down to male family members, but Huang is keen to move with the times and is willing to teach anyone who is willing to learn the trade. Economic front Southwest Politics • Negative propaganda on Tibet should be halted (26th October) The negative propaganda on Tibet was fueled by the Dalai Lama and must be halted at once, President of the Italy-China Foundation Cesare Romiti said Friday. Romiti, who attended an international forum on Tibet's development in Rome on Oct. 2223, told Xinhua that the global public had a distorted opinion on what was really happening in China's Autonomous Region of Tibet. The reason for this was an information gap. The forum, jointly sponsored by China's State Council Information Office, the ItalyChina Foundation of Italy and the Chinese Embassy in Italy, aims to set the record straight on Tibet, both in Italy and worldwide. According to Romiti, Tibet's major problem was the Dalai Lama's distorted propaganda. To correct the misleading image of Tibet depicted by the Dalai Lama, it was important to
203
BPM- Weekly Report # 91 Zone 1-Asia
open
up
the
region
to
the
rest
of
the
world,
he
said.
"Tourism can play a major role in attracting foreigners to see what the place is really like," Romiti suggested, but he conceded that this was not easy, as the region's tourist facilities were still underdeveloped. "Through the forum we have tried to increase reciprocal awareness among Tibet, Italy and the rest of the world," Romiti explained. He added that the international conference was a great opportunity to draw worldwide attention to the region. "It is crucial to spread thorough knowledge on the region, and this is what the forum has tried to do," Romiti asserted. "I believe the Chinese government can play a fundamental role in spreading correct information on Tibet," he added. Romiti had visited Tibet before. He described the region as "totally different" from the description the Dalai Lama had given." People enjoy economic autonomy and wide religious freedom, with monasteries covering the entire region," he said. The second international forum on Tibet's development has attracted more than 400 participants from China, Italy, Austria, the United States, India, Australia, Spain and Belgium. The
forum
was
held
for
the
first
time
in
Vienna
in
November
2007.
The Italy-China Foundation, established in November 2003, aims to boost mutual understanding between Chinese and Italian businessmen and help identify areas of cooperation for the economic and cultural circles of the two countries. Social front • Sichuan plans 10-year overhaul for education in ethnic regions (26th October) Sichuan, a multiple ethnic group-inhabited province in China bordering Tibet, worked on its education action plan for 2011-2020 in its minority ethnic regions at a meeting in the provincial capital of Chengdu on October 21. The Sichuan government is striving to bring the educational level in its minority ethnic regions on par with other areas in the province by 2020, Governor Jiang Jufeng said at the meeting. As part of the current 10-year plan for 2001-2010, the central government and the Sichuan provincial government have devoted 6.1 billion yuan ($893 million) to upgrade ethnic groups' education in the province, providing access of nine-year compulsory education to everyone free of charge. It previously provided only primary school education for free.
204
BPM- Weekly Report # 91 Zone 1-Asia
Since 2001, Sichuan has also greatly improved its schooling conditions in ethnic regions, with bilingual education both in Mandarin and local ethnic language moving forward, and the "9 plus 3" project running smoothly. The "9 plus 3" project means students will get three years' secondary vocational education for free after they finish the nine-year compulsory education. More than 10,000 Tibetan students in Sichuan province have been receiving free secondary vocational education since this September as part of the "9 plus 3" project, Xinhua news agency reported September 2. • Trial of 31 opens in Chongqing on organized crime charges (26th October) Thirty-one people went on trial Monday on charges of gang-related crimes in southwest China's Chongqing Municipality. The trial, which is expected to last 5 days at the Chongqing No. 5 Intermediate People's Court, is one of a series of organized crime trials resulting from investigations into 14 alleged mafia-style gangs in Chongqing. Li Qiang, a rich businessman and former deputy to the Chongqing Municipal People's Congress, who was said to be chief of the gang, faced nine charges including organizing and leading mafia-style gangs, disrupting public transportation, disturbing social order, concealing account books, bribery and tax evasion. Li, handcuffed and wearing bright orange vest coded 01, had four companies under his name and controlled more than 100 bus routes in Chongqing. The four companies, mainly on transportation business and real estate, were also charged with illegal operation and tax evasion. Another 20 suspects, who were allegedly gang members, were charged with crimes of participating in mafia-style organizations, disrupting public transportation and murder. Three civil servants were among the accused on charges of harboring Li's gang-related crimes and taking bribes. The officials were Xiao Qinglong, director of Communication and Transportation Administration of Shapingba District of Chongqing, Jiang Hong, director of the Road Transport Administration of Banan District of Chongqing and Jiang Chunyan, director of a complaints office under the Chongqing municipal government. Seven other suspects were charged with crimes of concealing account books, disrupting public transportation, disturbing public order and illegal operation. • New rock paintings of Tubo period discovered in Damxung, Tibet(26th October) Some new rock paintings from Tubo period were discovered in Damxung County of central Tibet during the third national cultural relics general survey, sources from Lhasa Cultural Relics Bureau. Most of the discovered rock paintings are painted with red dyestuff and the paintings are mainly about yaks, horses, sheep, riders, warriors, wizards, trees, sun, towers, sutra
205
BPM- Weekly Report # 91 Zone 1-Asia
streamers,
arrows
and
some
other
religious
signs.
Experts hold that these 20 rock paintings are precious materials for doing research on the social economy, culture, religion development and ancient art of the Tubo period. From September 7 to October 4, the third national cultural relics general survey has covered about 12,000 square kilometers in Damxung County, discovering some 60 unmovable cultural relics, re-checking 18 sites and rooting out 42 new cultural relics sites. Furthermore, two more graveyards, Qudongjuelangkang and Niedong were also discovered. • Meeting on advanced degree of Tibetan Buddhism held in Beijing(26th October) The Advanced Tibetan Buddhism College of China held its 3rd session of 2nd evaluation committee for Tibetan Buddhism advanced degree, on Oct. 26 in Beijing, with Dupkang Tupden Kedup, director with the Advanced Tibetan Buddhism College of China presided over the meeting. • Chinese painting exhibition on Tibet held in Milan(27th October) An exhibition of paintings by Chinese Han and Tibetan artists started here on Monday, showing the sublime sceneries and traditional customs of China's Tibet. Entitled as "Snow-Covered Plateau -- Chinese Painting Works," the six-day exhibition features 58 paintings depicting the extraordinary landscape of Tibet and the region's social and economic development in past 50 years. Before the opening ceremony, eight Chinese painting artists, half of them ethnic Tibetans, held a seminar with local artists, exchanging views on arts and cooperation. The exhibition, held in central Milan, was sponsored by China's State Council Information Office and Artists Association, the Chinese Embassy in Italy and the ItalyChina Foundation. Another nine-day exhibition of the same theme started on Oct. 23 with 60 paintings in Rome, a city with profound cultural heritages and artistic achievements. These exhibitions followed a two-day forum on the development of Tibet in the Italian capital, which attracted more than 400 participants from China, Italy, Austria, the United States, India, Australia, Spain and Belgium. More than 20 Chinese and foreign government officials, experts, scholars and entrepreneurs spoke on the achievements of Tibet and how to seize opportunities for cooperation in various fields. Economic front • Cotton acreage shrinks in Xinjiang in 2009 (26th October) Cotton acreage in Xinjiang Uygur autonomous region, a key cotton production base in northwestern China, shrank to 1.34 million hectares in 2009, down 19.4 percent from 2008.
206
BPM- Weekly Report # 91 Zone 1-Asia
Cotton output in 2009 is expected to top 2.37 million tons, down 21.3 percent from 2008, according to Xinjiang Uygur autonomous regional bureau of statistics. Xinjiang usually took about one third of the total cotton output in China in the past years, according to the bureau. The cotton acreage dived this year mainly because China's textile exports slumped last year and demand for cotton was sluggish, according to the bureau. Meanwhile, the cotton acreage slump also resulted from droughts and hails in many areas in the region this summer. Xinjiang planned to cut cotton acreage to below 1.33 million hectares in five years beginning in 2008 and then to 1.07 million hectares in another five years, according to Xinjiang Uygur autonomous regional bureau of agriculture. Meanwhile cotton output would be maintained between 2 million tons and 2.5 million tons through promoting high technology, according to the bureau. • China discovers Asia's biggest gas field in Chongqing (26th October) China Petroleum & Chemical Corporation (Sinopec) discovered a super giant gas field when its exploration team detected a 340 square kilometer area in Chongqing in China's southwest. According to Sinopec, this gas field with more than 120 billion cubic meters of gas reserves, is the biggest in Asia. South central Politics Social front • Residents say no to garbage incinerator(27th October) Thousands of residents in the Panyu district in this Guangdong provincial capital have signed a petition opposing construction of a garbage incinerator in their neighborhood. "Although relevant government departments have promised the facility will meet the State's environment protection requirements, we still worry the project will pollute the environment and harm our health," said a resident from Riverside Garden housing development. Burning garbage will generate dioxin, which can cause cancers, said the resident, who only gave his family name Wang. In Wang's housing estate alone, more than 1,300 residents have so far signed up to oppose construction of the project, according to Wang. "I believe the number of residents who oppose the project will continue to grow in the following months," Wang told China Daily yesterday. A committee of property owners will hand the signatures over to relevant departments to persuade them to cease construction of the project in the district Another resident surnamed Luo from the district's Hailong Bay housing estate said the project should not be built in the district, where many housing estates are located. Luo said she will move away if construction doesn't stop. Officials from the Panyu district government said relevant departments haven't received many complaints from local residents opposing the project.
207
BPM- Weekly Report # 91 Zone 1-Asia
Zhao Zhangyuan, a researcher from the Chinese environmental research institute, said burning garbage causes pollution. "Burning garbage produces many poisonous gases even when the most advanced technology is used," Zhao was quoted as saying by local New Express Daily. Zhao, a prominent figure in the fight against burning garbage in China, said no experts dare to promise incinerators are safe if they are less than 1 km away from housing developments. Property prices of nearby housing estates have fallen at least 10 percent since the project was revealed last month. But Wang Zechu, a Guangdong provincial government advisor, urged relevant residents in Panyu to adopt a rational and constructive attitude toward the project. "The project is built to meet the demands of the growing amount of garbage in the district," said Wang, who is also a member of the Guangdong Committee of Chinese People's Political Consultative Conference. Wang believes the project will not harm the health of local residents because construction of the project will not start if it fails to pass environmental assessments. An official from the Guangzhou department of landscape said his department would soon organize experts and scholars to assess the project's impact on the local environment. The department has decided to organize a public hearing on the project within a month. In addition to experts and officials, participants of the hearing will include residents and property owners from relevant housing estates, the official said. • Teenage heroes mourned in central China (28th October) A grand memorial service was held Wednesday in central Hubei Province to honor three college students who died rescuing two children from the Yangtze River on October 24. Thousands of people holding chrysanthemum flowers went to the Jingzhou Memorial House to see off the teenagers, all 19-year-old students from the Yangtze University based in Jingzhou City. The trio were Chen Jishi, He Dongxu and Fang Zhao. State Councilor Liu Yandong, Hubei Provincial Party secretary Luo Qingquan and Provincial Governor Li Hongzhong sent their wreaths to the ceremony. "The three heroes gave life to others and risked death themselves," said Zhang Zhongjia, Communist Party secretary of the Yangtze University. "They are the pride of their parents, elites of the nation and models of the time." People touched by their selfless act had donated more than 500,000 yuan ($73,206) to their relatives as of Wednesday, Zhang said. More than 10 students from the Yangtze University formed a ladder with one student holding another's arms to rescue the two boys in the river on the afternoon of October 24. One of the students lost his grip on his classmates and all of them were in danger. Several members of a winter swimming team nearby came to help. Chen Jishi, He Dongxu and Fang Zhao were swept away in the torrent, but others were saved. Millions of Internet users made online comments on major news portals to show their grief. "I am also a college student. I feel sorrow for you," said "Liu Zhuoya," from northwestern Xi'an City. However, some questioned the sacrifice.
208
BPM- Weekly Report # 91 Zone 1-Asia
"Sacrifice three and rescue two, is that worthwhile?" asked "Tiaozhantianya" on the forum of www.163.com. "Rescue can not be blind as they could not swim." "Besides economic values, society has moral and social values. Morality is above selfinterest," said Li Jiahua, deputy head of the China Youth University of Political Sciences. "It was a heroic deed," he said. • Death penalty sustained to man in fatal factory brawl (28th October) Court in southern China's Guangdong Province Wednesday upheld the original verdicts of death and life imprisonment sentences to men involved in a toy factory brawl on June 26, which left two Uygur workers dead. The Higher People's Court of Guangdong sustained the death penalty handed down on October 10 by the Intermediate People's Court of Shaoguan for Xiao Jianhua, who was held as the principal instigator of the fatal brawl. Xiao's fellow worker Xu Qiqi was sentenced to a life jail term for intentional injury. The same court also sentenced three of Xiao's accomplices to prison terms from seven to eight years on charges of assault. Two Uygur workers from Xinjiang Uygur Autonomous Region -- Aximujiang Aimaiti and Sadikejiang Kaze -- were beaten to death, and three were severely injured and six slightly injured in the brawl in Shaoguan in Guangdong Province. The local court heard the fight started after a Uygur male worker was found by other workers chasing a Han woman intern surnamed Huang in the factory. Xiao and his accomplices used iron bars to beat the Uygur workers, and obstructed medical workers from treating the injured. • $52.7M jackpot winner doles $1.5M to charity (28th October) Winner of China's biggest lottery prize donated 10 million yuan (US$1.46 million) to charity, according to a press conference held by the provincial Welfare Lottery center on Wednesday. The unidentified buyer from Anyang city of the central China's Henan Province reaped nearly 360 million yuan (US$52.7 million) after buying 44 identical "Double Color Ball" tickets issued by the China Welfare Lottery at a cost of 176 yuan on October 8. The buyer, "wearing facial mask and sunglass", completed the donation procedures "with ease and composure" at the local Welfare Lottery center at 2:10 p.m. Tuesday, said Li Guangyun, the spokesman of the center. The buyer said it would pay 600,000 yuan as medical expenditure for a 9-year-old girl with uremia in Fugou county in Henan Province. The winner told the center that besides donation to the local charity foundation, he would use the money to expand his private business. The Henan provincal Welfare lottery center said it would establish a fund to conduct more charity activities, and it would also accept supervisions from the society over the use of the fund. This is the largest amount of donation in China's lottery history. Sales of the Welfare Lottery, administered by the Ministry of Civil Affairs, hit 60.4 billion yuan (US$8.88 billion) in 2008 alone and the sales of all lotteries, including the Welfare and Sports lotteries, are expected to exceed 130 billion yuan this year.
209
BPM- Weekly Report # 91 Zone 1-Asia
Economic front • China's 4th Satellite Launch Center to be Built in Hainan (29th October) A new satellite launch center is now under construction near Wenchang in China's southernmost island province of Hainan. Once completed, it will be the country's fourth satellite launch centre and replace the Xichang Satellite Launch Centre (XSLC) for geosynchronous orbit (GEO) and other space launch missions. Yang Yong has more. Covering 20 square kilometers, the Wenchang Satellite Launch Centre will include a command centre, in addition to a rocket-launching site, rocket assembly plant, and a space-science theme park. The most important part, the rocket-launching site, will be located in Longlou Town, a mountainous place 40 minutes from Wenchang. The launch tower is about 800 meters away from the seaside. Wang Kangqiang, director of Hainan Space Program Service Bureau, says that Hainan was selected as China's fourth launch centre mainly for its geographical advantages. "Hainan is China's closest site to the equator and affords energy saving opportunities. The lower the latitude of the launch location the greater the centrifugal force is and a launch becomes easier and less expensive. " Compared to the existing Xichang launch centre, a GEO satellite launched from Wenchang will be able to extend its service life by two or three years as a result of the fuel saved from the shorter maneuver from the transit orbit to GEO, Wang says. "Additionally, as the new launch centre faces the sea in south and east directions, there is no danger of debris of the used launch vehicles falling into residential areas and large rockets can be easily transported to the launch center by sea." According to Wang Kangqiang, the new launch centre is planned to be ready by 2013 and it will mainly shoulder the launching of GEO satellites, polar orbiting satellites, large space stations and deep space exploration satellites. Liu Chunmei, mayor of Wenchang says that a space theme park will be built near the launch center, where tourists will have a grand view of the launching process. "With rich natural beauty, the following up space themed resources in Wenchang will draw more attention from home and abroad. And it will surely boost local tourism and economy." China currently has three satellite launch centers located in Xichang in southwest Sichuan Province, Jiuquan in northwest Gansu Province and Taiyuan in Shanxi Province which is in the north of the country. East Politics Social front • Shanghai confirms driver's entrapment claim(26th October) The Shanghai municipal government confirmed Monday that local transport supervisors entrapped a van driver while investigating illegal cab operations.
210
BPM- Weekly Report # 91 Zone 1-Asia
The Pudong New Area government will end the case according to law and make an open apology to the public, according to the Shanghai municipal government. The case involved a 19-year-old driver named Sun Zhongjie, who was seized allegedly conducting "illegal cab operation" by the urban management authorities in Pudong on Oct. 14, after he picked up a pedestrian who asked for a lift. Sun said he was ensnared by the urban management staff who were in charge of investigating unlicensed cabs, or "black cab". Sun cut off a piece of the little finger of his left hand to prove his innocence. • Fireworks lights up sky in 2009 West Lake Int'l Fireworks Fair (26th October) Fireworks lights the night sky and West Lake during a show of 2009 West Lake International Fireworks Fair in Hangzhou, east China's Zhejiang Province, Oct. 24, 2009. • Drought lingers in southern, eastern China (26th October) A firefighter fills up containers with clean water for drought-hit residents in Shangluoyuan village in Leping city, east China's Jiangxi province, October 24, 2009. Lingering drought continues to play havoc in southern and eastern China, stunting rice crops, lowering water levels in reservoirs and leaving hundreds of thousands of people short of drinking water. • China's ancient porcelain capital attracts new blood (27th October) With a posh house on the bank of the West Lake, one of China's most beautiful scenic spots in east city Hangzhou, Teng Ting, a ceramic artist, chose to live in a bathroomturned bedroom nearly 400 km away from home in southern city Jingdezhen. "It is all worth it since only in Jingdezhen can I fulfill my dream," said the long-haired artist, who came to the city, China's porcelain capital, five years ago. Jingdezhen, a city in China's Jiangxi Province, has a history of producing quality pottery for 1700 years. But in recent years it is eclipsed by other porcelain-producing cities, like Foshan and Chaozhou in south China's Guangdong Province, which catch up quickly through mass production. "To study ceramics, Jingdezhen is the place, since it represents the top level of world porcelain art," Teng said. The view is shared by Diana Williams, an Australian ceramic artist who also came to Jingdezhen five years ago. "This is Mecca for ceramic artists," she said, with her eyes sparkling. "There are so many great artists and skillful craftsmen here. And the supporting services are excellent," she said. "If you are a ceramic artist, full of dreams and ideas, but just can't turn them into ideal ceramics, then you need to come here," said the 52-year-old Australian artist.
211
BPM- Weekly Report # 91 Zone 1-Asia
Teng has been retreated into his studio for five years to create a new type of paints that can be put directly on porcelain.Teng named the new paints Nizhongcai, literally translated as "color in the mud". Creating ceramics with perfect color requires sophisticated skills since ceramic color could change after being glazed and burned in kiln. Teng's Nizhongcai, if proved successful, will make ceramic coloring much easier and further free ceramic artists. Unlike Teng who chose to work alone, Diana works with local artists. She got a studio for free from Liu Yuanchang, a renowned Chinese artist in arts and crafts. Diana works in her studio six months every year. She has bought a house in the city last year. Pointing at a nearby craftsman who was carving porcelain, Diana said "whatever my idea is, he can always make ceramics exactly as I want. I have tons of ideas, but I couldn't create ceramics all by myself." "I learn the unique ceramic crafts from local artists and they are also inspired by my western style," she said. Jingdezhen has many studios for rent which also provides in-house craftsmen, accommodation and interpretation services. LiuYuanchang's workshop, the Pottery Workshop and Sanbao Ceramic Art Institute are the most famous ones. "More than 1,000 foreign artists had stayed in my workshop," said Zheng Yi who set up the Pottery Workshop in Jingdezhen in 2005. "In Jingdezhen, I can get technical help and historical influence," said Josefine Fina Holmqvist, a Swedish ceramic artist who came to Jingdezhen on Oct. 5 and plans to stay for three more weeks. "I wanted to make decals before coming to Jingdezhen, and now I have a new idea, that is, to stick broken porcelain pieces onto a mirror and use porcelain as frames," she said. Local artists believed that the growing number of foreign artists in Jingdezhen could bring more vitality to the ancient city. "Jingdezhen has long been a diversified city and has always been open to artists. Ninety thousand craftsmen worked here in the Ming Dynasty (1368 to 1644). Jingdezhen can not be what it is today without the advanced techniques brought by craftsmen far and near," Liu Yuanchang said.
212
BPM- Weekly Report # 91 Zone 1-Asia
Building Jingdezhen into a global innovation center is the commitment made by Jingdezhen Municipal Government at the 2009 Jingdezhen International Ceramic Fair on Oct. 18 to 22. "We plan to invest 5 billion yuan (732 million U.S. dollars) in six years into the project," said Li Fang, mayor of Jingdezhen City. "Old kilns and workshops renovation is also on the agenda," Li said. "I am not sure how long it (to build Jingdezhen into a innovation center) will take, maybe five years, maybe 10," Diana said. "But I know for sure that it is the right direction," she said.
• Shanghai may greet Obama with Disney park deal(28th October) With US President Barack Obama due to visit China next month, speculation is swirling Walt Disney Co may finally be about to announce a long-awaited deal to build a theme park in Shanghai. Disney and the Shanghai government have been waiting since January for Beijing's approval to move forward with what would be the country's second Disneyland, after a Hong Kong park opened in 2005 to a string of operational problems and lacklustre attendance. "Beijing has approved the project. Now it's up to Shanghai and Disney to work out the plan and make this thing happen," a Shanghai government source familar with the situation told Reuters on Wednesday. The source asked not to be identified before a deal was made public, while spokespeople from Disney and the Shanghai government said they had nothing to announce at this time. By building in Shanghai, the company that brought Mickey Mouse and Toy Story to the big screen would be tapping a huge consumer market and growing personal wealth in one the country's modern cities. Media reports have placed the cost of the park around $3.6 billion. Disney would also aim to grab mainland money-making chances that have tended to elude it in Hong Kong, where its fifth resort was built in 2005. Anticipation is riding high that good news on Disney will be timed to coincide with Obama's visit to China from November 15 to 18 -- granting Disney its decade-old wish to locate a theme park on the mainland of the world's most populous country. Analysts said a Disney agreement could be a feel-good bilateral story, highlighting US cultural influence and an investment that does not entail US job losses in the manufacturing sector. China would get a boost to its leisure sector and to domestic demand as it tries to trim its dependence on exports, which left it vulnerable during the financial crisis, wrote Gong Weisong, an editor at the Shanghai Securities News.
213
BPM- Weekly Report # 91 Zone 1-Asia
"For a big country, besides GDP, soft power is also very important, and developing a culture industry has great commercial value," he wrote in a front-page commentary on Wednesday that said the time was right to go ahead with the Disney project. • Bus carrying 27 people falls of cliff in east China (28th October) A bus carrying 27 passengers fell off a cliff in east China's Zhejiang Province on Wednesday afternoon. Witnesses said at least eight passengers were killed, but the number of casualties has not been confirmed by authorities. • People enjoy pure pleasure in China's Jinan (29th October) They call Jinan the "City of Springs" because 645 of them pour into a moat surrounding the capital of Shandong province. Here you can take a boat trip to Daming Lake and on the way enjoy a number of scenic spots. The springs produce 300,000 cu m of water daily, filling the 5.5 km waterway that runs along the west side of Jinan, into the lake, the world's largest natural reservoir within a city. Black Tiger Spring, named for its deafening roar, originates from a 3-m deep and 1.7m wide cave and spews water out of three tiger-head shaped stones. Local residents get their supply of potable water from here. "It's so pure," says Zhao Yun, who has carried water home from the spring every day since he retired. Close by, Fairy Spring got its name from a folk tale about nine fairies so enamored by the spring they never wanted to leave. Thousands of tiny bubbles rise from the bottom of the spring, spreading out in expansive ripples on the surface. From the boat, shoals of fish can be seen in the clear water, fringed by willows, while the tea served on board is boiled with spring water. "The springs add to Jinan's charm," says Kenzo Maruki, a Japanese tourist. Construction of the waterway began in late 2007. "Two years' efforts have paid off. The water around the city is clear, the river banks are carpeted with green plants and Daming Lake has been expanded," says Han Xiaoguang, director of Jinan Landscape Bureau. At the Square of the Spring City, locals fly kites and feed pigeons as couples sit under the willows, talking and smiling. Opposite, there is Baotu Spring Park, which has a recorded history of 3,543 years. Poets since the Tang Dynasty (AD 618-907) have been inspired by it, including Jinanborn Li Qingzhao of the Song Dynasty (960-1279). Its purity and a constant temperature of 18 C inspired Emperor Qianlong of the Qing Dynasty (1644-1911) to call it "the crown of springs" and there is a stone tablet that bears witness to this. There are many forms of entertainment at the park every evening, especially in the summer when there is always a cool breeze. The 84-year-old Yan Gan, who has lived in Jinan for more than 60 years, says he loves the springs and has held an exhibition of his photographs that record how Baotu Spring changes according to the season.
214
BPM- Weekly Report # 91 Zone 1-Asia
There is also an island in Daming Lake that is worth visiting for its ancient ruins, 30 temples, pavilions and bridges. A boat ride back to Jinan's old lanes takes just one hour and here you can check out snack foods, washed down with green tea or beer made from the spring water. Last month, Baotu Spring Park was confirmed as a National Key Park by the central government. • 11th National Games concludes in Jinan (29th October) The 11th Chinese National Games came to a successful close on Wednesday after 13 days of fierce competition with the host Shandong topping the medals table. Chinese premier Wen Jiabao officially closed the Games amid a frugal ceremony held in the newly-built Olympic Sports Complex. The final overall medals table reads Shandong on 63 golds, followed by the Chinese Army on 49 and Jiangsu on 48.5. The Games, billed as China's mini-Olympics, was a true sports extravaganza as five world records, along with 16 Asian records and 39 national records were broken. "The athletes put on a great show by creating a set of records and many hopefuls came of age at the Games," said Liu Peng, director of the State General Administration of Sports (SGAS) and president of the Games' organizing committee. The weightlifters stole the limelight at the prestigious competition with seven strongwomen bettering ten world records in four divisions and two strongmen breaking two world records in two categories. The swimmers also made splashes in the pool as one world record and 11 Asian records had been written by them. China's Olympic champion Liu Zige once again made the headline, setting the new world record in the 200m butterfly final in 2:01.81, and knocking over two seconds off previous world best set by Australian Jessica Schipper at the Rome World Championships. In the less competitive track and field, pin-up hurdler Liu Xiang produced an impressive comeback to win a third straight title at the Games. Though Liu's winning result of 13.34 seconds was far off his former world record and personal best of 12.88, his second race after his shock withdrawal from the Beijing Olympics pushed the National Games to its climax. Li Yanxi of Hebei jumped a distance of 17.59 meters, breaking triple jump Asian record of 17.35 and also refreshed the oldest Chinese track and field national record set in 1981. However, the biggest-ever National Games, which was participated by 10,991 athletes from 46 delegations, was marred by three doping scandals although the Chinese sports governing body has vowed a serious clampdown on doping cheats. Xiao Tian, vice director of SGAS, called for better sportsmanship and fairer competition, yet acknowledged that to improve the sportsmanship and fight against doping were an "arduous" task. The Games, with the theme of "Harmonious China and People's Games", featured 33 sports consisting of all 28 sports in summer Olympics, four winter sports and Wushu as well. The National Games, which was inaugurated 50 years ago and usually held every four years, are the country's top national-level sports event. The next National Games will be held in northeast China's Liaoning province.
215
BPM- Weekly Report # 91 Zone 1-Asia
• Wen stresses medical, social security reforms (30th October) Chinese Premier Wen Jiabao has underscored the importance of deepening reforms in the country's medical system and social security network so as to improve the livelihood of the general public. During a three-day inspection tour in eastern Shandong Province ending Friday, Wen visited county-level hospitals and vocational schools, chatting with local farmers and primary school students. Reform in the medical system should be conducive to the fair and rational distribution of medical resources and efforts should be focused on rural areas and grassroots communities, Wen said. He called for putting people first and building a harmonious relationship between medical staff and patients. Economic front • Qinghai-Tibet railway to enter 4th winter operation(26th October) A train runs at the foot of snow-covered mountains in northwest China's Qinghai Province, Oct. 24, 2009. The Qinghai-Tibet railway will enter its 4th winter operation after three year's safety running, which strongly boosted the economic and social developments in Qinghai and Tibet Autonomous Region. • Man jailed for illegal gold futures operation (29th October) A man in east China's Zhejiang Province was sentenced to 9 years in jail for the crime of illegal gold futures operation invloving more than 58 billion yuan (US$8.49 billion), a local court ruling said Thursday. It was believed to be the biggest ever case of illegal gold futures dealing. Zhang Yong, legal representative of the Zhejiang Century Gold Product Company, was accused of illegal operation and flight of capital contribution and was fined 1.2 million yuan, a Shangcheng District People's Court ruling said. Wang Jianping, a staff of the company, was sentenced to three years in jail with a fouryear reprieve for the crime of illegal operation and was fined 100,000 yuan. The company was also accused of illegal operation and was fined 71 million yuan, it said. Zhang began to advertise on the Internet and in the media to attract clients since July 2005. The company developed an online trading platform and the registered clients reached 1,217 as of June 2008. The gold dealing of the company was not connected with the international market. Its dealing referred to the international real time gold price. The company acted as both the buyer and seller and charged a fee from each deal. The down payment collected from the clients was about 275 million yuan. The illegal earning from the gold futures dealing was at least 110 million yuan, according to the court. HONGKONG AND MACAU
216
BPM- Weekly Report # 91 Zone 1-Asia
Politics • HK launches interpretation service for ethnic groups (31st October) An interpretation service to facilitate ethnic minorities in accessing local public services was launched on Saturday, according to the Hong Kong government website. The service, provided under the funding grant of the Constitutional and Mainland Affairs Bureau of Hong Kong, is operated by the Hong Kong Christian Service as part of the services of their Center for Harmony and Enhancement of Ethnic Minority Residents (CHEER). The service aims at facilitating members of ethnic minorities who do not have a good command of Chinese or English to communicate with the service organizations concerned. Seven ethnic minority languages or dialects are covered including Bahasa Indonesia, Hindi, Nepali, Punjabi, Tagalog, Thai and Urdu. The interpretation service is mainly provided through telephone hotlines. The operating hours are from 8 a.m. to 10 p.m., Monday to Sunday except public holidays. The telephone interpretation service is provided free of charge. The CHEER center is one of the four support service centers for ethnic minorities funded by the Constitutional and Mainland Affairs Bureau and operated by non-governmental organizations. The centers offer a number of programs for ethnic minorities to facilitate their integration into the community. • US aircraft carrier arrives in Hong Kong (29th October) US aircraft carrier USS George Washington is anchored in Hong Kong waters upon its arrival October 29, 2009. Social front • HK signs working holiday scheme with Japan (27th October) Hong Kong and Japan exchanged a Note Verbale here on Tuesday to mark the establishment of a new bilateral working holiday scheme to benefit young people of the two places from Jan. 1, 2010. The letters for exchanging the Note Verbale were signed by Matthew Cheung Kinchung, Hong Kong's Secretary for Labor and Welfare, and Shigekazu Sato, Japanese Consul-General and Ambassador. Speaking at the signing ceremony, Mr. Cheung said Japan was the first Asian country to establish a working holiday scheme with Hong Kong. The scheme will strengthen the bilateral ties between Japan and Hong Kong. The Working Holiday Scheme seeks to enable young people to gain first-hand living and working experience in a foreign culture while they are holidaying. "Japan is one of the most favored tourist destinations of Hong Kong people and also Hong Kong's third largest trading partner. The scheme with Japan offers a golden
217
BPM- Weekly Report # 91 Zone 1-Asia
opportunity for our young people to learn more about life in Japan by taking up temporary jobs while touring around and making friends," Mr. Cheung said. The scheme with Japan is the fifth bilateral working holiday scheme that Hong Kong has signed with other places. Hong Kong established such bilateral schemes with New Zealand and Australia in 2001, Ireland in 2005 and Germany in 2009. So far, more than 9,200 Hong Kong youngsters have benefited from their stay in these countries while 1,260 young people from New Zealand, Australia, Ireland and Germany have experienced Hong Kong's cosmopolitan and vibrant way of life. There are 250 places per year from each side under the scheme with Japan. Participants will be allowed to stay up to 12 months in each other's territory for holiday and to take up employment to finance their stay. •
95% of meat passes safety test in HK (27th October)
The Center for Food Safety of Hong Kong Tuesday said 95 percent of 222 samples of meat have passed a test on the use of sulphur dioxide. The center collected samples of pork, beef and mutton from local meat stalls. Nine fresh beef and two fresh pork samples were found to contain the preservative at levels exceeding the legal limit. The test was conducted after repeated detections of the use of non-permitted chemicals in fresh meat in recent years. Under the Preservatives in Food Regulation, sulphur dioxide cannot be added to fresh, chilled or frozen meat. Offenders are liable to six months' jail and a 50,000 HK dollars (about 6,458 U.S. dollars) fine. The center has issued warning letters to the sellers concerned and taken more samples for testing. According the Food and Environmental Health Department of Hong Kong, sulphur dioxide is low toxicity and does not pose a serious health threat. It is water-soluble and most of the chemical can be removed through washing and cooking. But people allergic to the preservative can have breathing difficulties, headaches and nausea. • Hong Kong holds exercise for Games safety (28th October) Firefighters in protective suits take part in a chemical, biological, radiological and nuclear field exercise for the East Asian Games in Hong Kong October 27, 2009. Athletes from
218
BPM- Weekly Report # 91 Zone 1-Asia
nine countries and regions will compete for more than 260 gold medals in the Games between December 5 and 13. Economic front •
China's State Council approves feasibility report of Hong Kong-Zhuhai-Macao Bridge (29th October) China's State Council on Wednesday approves a feasibility report on the construction of a bridge linking Hong Kong, Macao and a mainland city Zhuhai. The construction of the bridge will forge stronger economic and social ties between the west bank of the Pearl River and Hong Kong, said a statement issued after an executive meeting of the State Council, which was chaired by Premier Wen Jiabao. The bridge, after completion, will promote the construction of a comprehensive transportation system and build a highway network in Guangdong, Hongkong and Macao, it read. The project will also raise the overall competitiveness of the Pearl River Delta, maintain the lasting prosperity and stability of Hong Kong and Macao and boost coordinated social and economic development of the Pearl River region, it said. Linking Hong Kong, Macao and Zhuhai of China's coastal economic hub Guangdong Province, the proposed bridge's main body will be about 29.6 kilometers. It will be built according to the six-lane expressway standard with a vehicle speed of 100 kilometers per hour. The project includes main bridge section, links and ports. The estimated total investment is 72.6 billion yuan (10.63 billion U.S. dollars). •
HK stocks dive 2.28% on peripheral markets declines(29th October)
Hong Kong stocks went down on three consecutive days, plunging 496.59 points, or 2.28 percent, to end the trade on Thursday. Tracking losses on peripheral markets, the Hang Seng index opened 471.49 points, or 2.17 percent, lower at 21,290.09 points. Losses of the shares narrowed down a bit to finish at 21,264.99 points, reaching a record low closing in recent three weeks. Turnover surged to 80.81 billion HK dollars (about 10.44 billion U.S. dollars) from Wednesday's 68.97 billion HK dollars (about 8.91 billion U.S. dollars). China Enterprises Index went down 364.51 points, or 2.84 percent, to close at 12,466.67 points. All four major stock categories dropped. The property sub-indexfell 2.51 percent, the commerce and industry sub-index, 2.58 percent, the finance, 2.15 percent, and the utilities, 1.01 percent.
219
BPM- Weekly Report # 91 Zone 1-Asia
Cheung Kong, the flagship of Hong Kong's richest man Li Ka- shing, fell 2.31 percent to 97.2 HK dollars. Henderson Land dropped 1.52 percent to 51.9 HK dollars. SHK Properties lost 3.02 percent to 112.5 HK dollars. Blue-chips generally ended lower. Banking giant HSBC Holdings fell 1.21 percent to close at 85.8 HK dollars. Heavyweight China Mobile, by far the largest mobile carrier in the mainland, lost 1.14 percent to 73.8 HK dollars. HKEx, the sole exchange operator in Hong Kong, plunged 2.2 percent, to 137.6 HK dollars. Mainland-based commercial lenders plunged. Bank of China, slid 2.70 percent at 4.33 HK dollars. ICBC fell 2.72 percent to 6.08 HK dollars. CCB moved 2.36 percent down to 6.61 HK dollars. Chinese insurance shares also lost. China Life fell 2.03 percent to 36.25 HK dollars. Ping An dropped 2.16 percent to 67.85HK dollars. As for energy shares, PetroChina dived 4.02 percent to 9.55 HK dollars, off-shore oil producer CNOOC lost 4.48 percent to 11.5 HK dollars, while Sinopec Corp fell 1.34 percent to 6.63 HK dollars.( 7.8 HK dollars = 1 U.S. dollar) • HK inflation to remain reined-in: finance chief (30th October) Hong Kong's finance chief John Tsang said on Thursday that he expected inflation pressure in the city to remain reined in for some time to come. Tsang, the Financial Secretary of the Hong Kong Special Administrative Region (HKSAR) government, said that chances of a drastic surge in the consumer prices were few in the near term, but, should liquidity remain excessive, inflation pressures could mount in the medium and long run. "We shall keep monitoring (the local economy)," he told a meeting of the HKSAR Legislative Council. Tsang said he was confident that the Hong Kong economy will return to growth next year. The prices of some of the luxury flats were higher than the previous peak recorded in 1997 but the prices for small and medium- sized flats were still lower, he said. The HKSAR government policy is for the local real estate market to remain healthy and stable, he said, adding that he understands that it is the dream of many citizens to be able to afford houses. Now 860,000, or 70 percent, of the 1.23 million local households live in properties they own, compared with 64 percent 20 years ago, he said. Report # 90 & 91 BUSINESS AND POLITICS IN THE MUSLIM WORLD GULF COOPERATION COUNCIL NEWS MONITORING REPORT MADIHA KAUKAB 17th Oct – 30th Oct 2009 PRESENTATION DATE: 4th Nov 2009
220
BPM- Weekly Report # 91 Zone 1-Asia
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…………………………………………………………………………….07 GCC ministers to discuss regional development bank GCC committed to monetary union GCC railway project to be extended to Yemen: Official GCC countries have come out of slump Half of GCC’s power projects in Saudi Arabia IMF urges GCC to diversify economies GCC seen to spend more than $100b on rail projects GCC refining capacity to up43% by 2015 GCC power grid launched at Riyadh conference GCC urged to support Yemen Kuwait calling for delay in Gulf currency Long road ahead for GCC single currency 'GCC investor confidence high' GCC rail network progressing well: Saudi GCC-EU free trade treaty possible by year-end Slipping stocks, oil price sap sentiment on Gulf markets GCC can get up to $ 1trn in oil surplus Emirates Business 24/7 - 28 October, 2009 SAUDI ARABIA…………………………………………………………………....15 International Front First Saudi relief plane arrives in Niger Saudi FM Meets Belgian Crown Prince Saudi Arabia, Belgium discuss cooperation in carbon field Social Front 10 million festival visitors bring in SR1.2 billion Try imprisonment before sentencing: Saudi Shoura member Nuclear Energy Front Saudi Shoura endorses nuclear safety report Economic Front Saudi Arabia records biggest gain
221
BPM- Weekly Report # 91 Zone 1-Asia
Saudi demand for luxury cars on the rise Saudi stocks uptick to continue Saudi non-oil output to grow 3.6% in 2010 JCCI, Russian Economic Federation sign joint cooperation pact Oil & Gas Aramco plans to start gas plant Bahrain and Aramco in talks to build pipeline UAE…………………………………………………………………....19 International Front UAE and Palau establish ties UAE wins Unesco body membership UAE establishes diplomatic ties with Haiti Yemen hails directives of UAE President for dispatching relief aid UAE, Syria hold talks UAE, Syria make bilateral headway Swine flu H1N1 influenza under control: Minister Economic Front Gulf stocks drop but UAE benchmarks buck trend UAE economy sound: Suwaidi UAE electronics market poised for boom KUWAIT…………………………………………………………………....22 International Front US Special Representative to Muslim Communities to visit Kuwait Somali president arrives on official visit sign new defense pact Kuwait press crowned freest in the Arab World: Media watchdog Ban urges Iraq, Kuwait to achieve progress Political Front Kuwait court rules, women MPs can shun hijab MP rejects committee's 'Islamist domination' Social Front
222
BPM- Weekly Report # 91 Zone 1-Asia
Day of fines and grilling Kuwait activists divided over single-constituency bill Kuwait eyes mega projects Economic Front Kuwait, Bahrain bank profits fall Non-oil revenue expected to touch KD 4 million BAHRAIN…………………………………………………………………....27 International Front Bahrain votes to end contacts with Israel Bahrain MPs vote to ban all contact with Israel Social Front Education right of every citizen Economic Front Bahrain’s positive growth is praised Finance ministers to probe crisis impact Bahrain and US vow to meet free trade target Kingdom's economic strides praised Energy Front Energy projects top $690 billion Energy sector challenges to be analysed Oil and Gas Mideast oil and gas ICT summit on way QATAR…………………………………………………………………....30 Qatari PM meets British parliamentarian Qatari PM holds talks with Croatian foreign minister Qatar Emir, Bangladesh PM hold talks Qatar criticizes Israel Qatar Emir meets king of Saudi Arabia Oil & Gas
223
BPM- Weekly Report # 91 Zone 1-Asia
Qatar enjoys ‘tremendous flexibility’ in gas supplies Qatar diverts LNG to China from US OMAN…………………………………………………………………....32 International Front Alawi confers with Carter, receives Croatian FM Oman, Saudi border officials hold talks Oman, Saudi Arabia sign border document Qaboos directs despatch of aid to Yemen SUMMARY To further boost up the regional integration Gulf States have agreed in principal to extend their multi-billion dollar railway project to Yemen, their poorer neighbour on the Arabian peninsula, a United Arab Emirates official said. On International Front, Saudi Arabia plans to inject carbon dioxide into the world’s biggest oil field by 2013 to trap climate-warming gas and improve oil production, has discussed plans with Belgium to cooperate in the field of carbon capture and storage (CCS).The plans will help to undertake joint research projects, disseminate and exchange up-to-date information, and evaluate where Riyadh and Brussels stand in terms of CCS research and development. Cooperation in the field of CCS was one of the major topics discussed with senior Saudi officials during Sunday’s meetings. Meanwhile in implementation of the directives of the Custodian of the Two Holy Mosques King Abdullah to provide humanitarian aid to Niger to alleviate the suffering of the people affected by the torrential rains that fell on the city of Agadez causing enormous flooding, the first Saudi relief plane arrived in Niamey Airport in Niger. The UAE has established a diplomatic ties with Haiti, a joint statement signed here last night formally establishes diplomatic relations at ambassadorial level. Meanwhile Yemen has lauded the instructions of President His Highness Sheikh Khalifa bin Zayed Al Nahyan, on dispatching urgent relief aid to those affected in the recent incidents in the northern Yemeni provinces. It reiterated that the move further boosts humanitarian initiatives of Sheikh Khalifa towards the Yemeni people, adding that such stances ease lives of the needy people. On the other side Syrian people and Government show their full support to the right of the UAE to sovereignty on the three Islands - Abu Musa, Greater Tunb and Lesser Tunb - occupied by Iran since the year 197, according to the speaker of the Syrian parliament on his visit to UAE. Kuwait's First Deputy Prime Minister and Minister of Defense Sheikh Jaber AlMubarak Al-Hamad Al-Sabah wrapped up an official visit to France during which he signed a new defense pact, described as "complimentary and in activation" of the 1992 treaty. The new agreement was signed by Sheikh Jaber and his French counterpart, Herve Morin. The Kuwaiti official had stated that the renewed pact is flexible for the political leadership and the armed forces regarding the strategic exchange.
224
BPM- Weekly Report # 91 Zone 1-Asia
Bahrain’s Parliament on Tuesday approved legislation penalising contacts with Israel. “Whoever holds any communication or official talks with Israeli officials or travels to Israel will face a fine ... and/or a jail sentence of three to five years. Qatar has strongly condemned the storming of the Al Aqsa Mosque by Israeli occupation forces and the use of force and violence against worshippers. An official source at the Foreign Ministry told QNA that the attacks were in violation of international conventions and a breach of international and humanitarian law and an attempt by Israel to drag the region into a spiral of violence to implement its plans to eliminate any chance of achieving peace in the region Oman’ s Sultan Qaboos bin Said has issued Royal Directives for sending immediate relief to those displaced in the governorate of Sa’dah in the Yemeni Republic. On political front, Kuwait's constitutional court rejected a petition brought by four voters to declare invalid the election of two women MPs because they refuse to wear the hijab headscarf. The decision of the court, whose rulings are final, was announced to reporters by the chairman of the court, Yussef Ghanam Al Rashid. Two of the four women who became Kuwait’s first female MPs in May refuse to wear the hijab, which has also been spurned by the only woman appointed as a minister in the Kuwaiti government following the May election. On Social Front, in Saudi Arabia, an advisor to the Royal Council who is a prominent Islamic scholar has launched an outspoken attack on judges for handing out excessive prison and lashing sentences. Sheikh Abdul Muhsin Al-Obaikan, who is also a member of the Shoura Council, said there was no Islamic justification for such excessive sentences. It had been proved, he claimed, that the Prophet (peace be upon him) had issued no more than 100 lashes for an offence. He jokingly said judges would not be able to handle a 10-year prison sentence, let alone be on the receiving end of a whip. On Economic Front, Crude refining capacity of the six Gulf Cooperation Council (GCC) countries will rise by 43 percent to 5.2 million barrels per day (bpd) by 2015. This will represent 5.2 percent of the world’s total capacity compared with 4.2 percent now, the ratings agency said. Refining capacity expansion plans are part of government efforts in the region to boost output of value-added products on the back of their huge crude production. GCC Investor Sentiment Report, the only report of its kind for the Gulf markets, described the situation that the GCC Real Estate, Construction & Materials sector improved dramatically, turning positive for the first time since April 2009 after a significant jump from -13.7 per cent to 13.7 per cent of balance1 of investors expecting a rise in profitability . "The continued improvement in the GCC Investor Confidence Index was largely driven once again by the positive movement in the balance of investors' perceptions of current regional economic conditions. According to a top GCC official, the much-delayed free trade agreement between the Gulf Cooperation Council and the European Union could be signed by the end of the year or early next year, as both the economic blocs have sorted out almost 90 per cent of contentious issues relating to trade and economics.
225
BPM- Weekly Report # 91 Zone 1-Asia
Slipping global stocks and a fall in the oil price reduced investor sentiment across Gulf Arab markets yesterday, leading to declines on most regional bourses. A decline was triggered by market retreat in the United States on Monday as well as three days if falls in oil prices. In the United Arab Emirates, Dubai’s index ended 0.8 percent lower after seeing its largest one-day increase in four weeks on Monday. National Bank of Abu Dhabi also reported quarterly results towards the end of the session. Trading on the stock was halted ahead of the results. Abu Dhabi’s largest lender reported a jump of 41 percent in quarterly profit, just short of analysts’ average expectations. The Saudi measure, which is more correlated to oil prices, slid 0.5 percent to 6,533 points, with most major stocks witnessing selling pressure. Samba Financial Group, the second largest listed Saudi bank, retreated 3.5 percent. “The Saudi market is more correlated to global oil prices,” says Moussa Haddad, head of Middle East equity trading desk at NBAD. “There is no major news that is driving the market down today. It is close to the end of the month when some investors start closing positions, nothing significant in that.” Indices in Oman, Bahrain and Qatar all slipped as a cautious attitude curbed investor enthusiasm. Although third-quarter earnings from Oman Cement Co beat expectations, market sentiment remained subdued. “At the current time, traders are still very cautious of global and regional markets,” said Adel Nasr at United Securities. Only Kuwait’s benchmark managed to end slightly higher, with investors picking up banking stock which were unceremoniously dumped in Monday’s session. National Bank of Kuwait rose 1.6 percent after its quarterly earnings beat forecasts. Kuwait Finance House climbed 1.6 percent after its chief executive said provisions, which stood at $ 1.6bn, were declining. Meanwhile to recent industry reports show that the ongoing power projects in the GCC have been estimated to be worth up to SR607.5 billion, with Saudi Arabia accounting for around 50 percent of the total investments. On the other side it is observed by Abdullah Saleh Al-Shamashy, executive director of Exotic Cars Exhibition at the Fours Season Hotel in Riyadh, that the demand for luxury cars has been increasing in the Kingdom despite the world economic crisis. Current situation of the UAE economy is much better than that of last year according to the International Monetary Fund (IMF), Governor of UAE Central Bank Sultan Bin Nasser Al Suwaidi said on Sunday. "The IMF predicts the UAE economy is nearing the point of balance and this positive result is attributed to China's allocation of $580 billion to development which pushed average oil prices to $ 65 per barrel in 2009,'' Al Suweidi said during a joint meeting with the Federation of Chambers of Commerce and Industry (FCCI) and business community. On Oil & Gas front, Bahrain is now in talks with oil giant Saudi Aramco over plans to move ahead with constructing a new pipeline between the two countries. China has shown keen interest in getting liquefied natural gas (LNG) supplies from Qatar, Deputy Premier and Minister of Energy and Industry H E Abdullah bin Hamad Al Attiyah told a news conference. Qatar has diverted 5 million tonnes per year of LNG to China which was previously intended for the United States, said Al Attiyah. “China has shown keen interest in getting our LNG and we have the right to divert our gas to a better market. I am a big believer in China market,” he said after the inauguration of RasGas Train 6 here. China received its first LNG cargo of 216,000 tonnes from Qatargas last week. The LNG shipment was the first of the 25 year supply agreement
226
BPM- Weekly Report # 91 Zone 1-Asia
between China and Qatar. He said Qatar would not hesitate to divert its LNG cargoes to other markets if it gets better market conditions and lucrative price rather than dump its gas to the United States. DETAILED REPORT GCC GCC ministers to discuss regional development bank Finance ministers of the six nations that form the Gulf Cooperation Council (GCC) will discuss a proposal for a regional development bank similar to Europe’s, the top GCC official said yesterday. Finance ministers and central bank governors from the GCC states are meeting in Muscat to set the agenda for the rulers’ summit in Kuwait next month. “They will discuss the Qatar vision of a mechanism for the proposal for an investment and development bank like you have in the EU,” GCC Secretary General H E Abdulrahman Al Attiyah told reporters. The bank would provide funding for regional projects and would also make donations outside of the GCC, Attiyah said. GCC committed to monetary union Gulf finance ministers and central bank governors yesterday reiterated their commitment to a monetary union and a single currency which four states plan to launch next year. The top officials from Bahrain, Kuwait, Qatar and Saudi Arabia meeting in Muscat called on the United Arab Emirates and Oman, which have previously withdrawn from the plan, to rejoin. “Once the countries that are members agree, we will work on setting up the Gulf central bank and launch the project of the common currency,” the Gulf Cooperation Council (GCC) said after the meeting. “The GCC countries have asked those who have not ratified the single currency to do so by the end of the year,” said Darwish Ismail Al Balushi, secretary general in Oman’s finance ministry. Finance ministers and central bank governors from six Gulf Arab states are meeting in the Omani capital to set the agenda for a rulers’ summit in Kuwait later this year. The head of the IMF also attended the meeting yesterday. Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE agreed at a summit in 2001 to set 2010 as the target to launch the monetary union and single currency. Bahrain, Kuwait, Qatar and Saudi Arabia signed a pact in June to create a joint monetary union council and launch the monetary union and single currency. The Emirates was irked at the choice of the Saudi capital Riyadh to host the future GCC central bank, while Oman withdrew from the monetary union saying it was not ready to meet the preconditions. The policy makers also said now is not the time for Gulf states to mop up the huge stimulus pumped in after the global financial crisis. When asked if Gulf states should begin easing back the throttle, Saudi Arabian Monetary Authority Governor Muhammad Al Jasser told reporters: “Not yet. Not necessarily. GCC railway project to be extended to Yemen: Official
227
BPM- Weekly Report # 91 Zone 1-Asia
Gulf states have agreed in principal to extend their multi-billion dollar railway project to Yemen, their poorer neighbour on the Arabian peninsula, a United Arab Emirates official said yesterday. The six countries in the Gulf Cooperation Council (GCC) - a loose economic bloc that comprises Saudi Arabia, the UAE, Kuwait, Qatar, Oman and Bahrain - are spending more than $100bn on various rail projects to ease congestion in the face of poor public transport networks and a growing population. The Gulf Arab rail network alone will cost $20-$25bn as the six oil producers seek to create a similar model to Europe’s high speed rail system. The 1,940km railway would connect the six Gulf states, each of which would contribute a share of the start-up capital. Yemen had asked for the railway be extended over its border with Oman. “The GCC has accepted in principle to extend the railway link to Yemen from Oman,” said the official, who was attending a meeting of Gulf policymakers in Oman. GCC countries have come out of slump Gulf finance ministers have said the region has emerged from recession, but suggest that fiscal stimulus programmes must not yet be cut. Finance ministers and central bank governors from all six GCC states also urged those who have yet to ratify an agreement on monetary union to do so by year end. The meeting held here yesterday was meant to set the agenda for a rulers’ summit in Kuwait later this year and comes as the region’s economies show signs of bouncing back from the crisis, helped by rising oil prices. When asked if Gulf States should begin easing back the throttle on government spending, Saudi Arabian Monetary Authority Governor Muhammad Al Jasser told reporters: “Not yet. Not necessarily.” “The pulling out depends on the pace of the recovery in each country and the pace is not the same in all countries,” he added. “So the pulling out of the stimulus has to be synchronized with the recovery pace in each country.” Jasser also said Saudi Arabia’s economy was recovering. “Our stimulus is mostly for oil production capacity enhancement and also large development projects we’re implementing. When these projects are finished, then we will reassess the need for additional spending,” Arabian Business Web site reported. IMF urges GCC to diversify economies Gulf Arab countries need to diversify their economies and financial sectors, IMF chief Dominique Strauss-Kahn said on Saturday. Gulf countries were not immune from the consequences of the financial crisis but have tackled it from “a position of strength,” the International Monetary Fund managing director told Gulf states ministers at a meeting in Muscat. “The authorities should be commended for cushioning the impact of the crisis through strong countercyclical fiscal policy, which helped sustain growth in their own economies and had positive spillovers for neighboring countries as well as contributing to global demand during the downturn,” he said. But Strauus-Kahn added: “There is a need to continue to diversify the financial sector, and more broadly the economy. Doing so would reduce both volatility in economic activity and financing costs for private investment, which is key to providing jobs for a growing labour force.” He said the IMF has been closely cooperating with Gulf
228
BPM- Weekly Report # 91 Zone 1-Asia
countries and is ready to support their efforts toward economic integration and monetary union. GCC seen to spend more than $100b on rail projects Over the past few years the world has looked on in amazement as the unprecedented amount of investment in rail projects continues to grow at astonishing rates in the Middle East. Owing to the boom in population and increased traffic on the roads, governments are recognizing the need for quality rail infrastructure as a means to stimulate and sustain the economy. It is approximated that the Gulf states will spend more than $100 billion on rail projects in the coming years. GCC refining capacity to up43% by 2015 Crude refining capacity of the six Gulf Cooperation Council (GCC) countries will rise by 43 percent to 5.2 million barrels per day (bpd) by 2015, ratings agency Moody’s said on Monday in an analysis of the region’s energy sector. This will represent 5.2 percent of the world’s total capacity compared with 4.2 percent now, the ratings agency said. Refining capacity expansion plans are part of government efforts in the region to boost output of value-added products on the back of their huge crude production. GCC power grid launched at Riyadh conference A 400-kv GCC Interconnector Grid commissioned during the summer was launched at the GCC Power 2009 Conference and Exhibition inaugurated Monday at the Marriott Hotel here by Dr. Salih Bin Hussain Al-Awaji, Deputy Minister of Water and Electricity. The move to launch the interconnector grid affirmed the close collaboration among GCC countries on addressing important power challenges, such as supply, security and reliability in the power sector, according to a press release issued on the occasion. Over 500 delegates from the six-state GCC are participating in the conference in order to explore opportunities in the $162 billion GCC power sector. GCC urged to support Yemen Saudi Deputy Interior Minister Prince Ahmed on Tuesday called upon GCC countries to provide all-out support to Yemen — which is facing an armed insurgency from Houtians in the north — in order to strengthen the Arab country’s security and create stability. Addressing a meeting of GCC interior ministers in the Omani capital, Prince Ahmed also called for non-interference in Yemen’s affairs by outside forces. “Establishing excellent security relations among countries of the region including Iran demands mutual respect and cooperation and non-interference in internal matters,” he said. Prince Ahmed also spoke about major security challenges facing the region, more importantly terrorism, which threatens the achievements of countries in the region. Kuwait calling for delay in Gulf currency Kuwait, one of four Gulf states to sign a pact to launch a monetary union and single currency, yesterday called for a delay in the 2010 launch date, citing incomplete preparations.
229
BPM- Weekly Report # 91 Zone 1-Asia
“The ministry of finance calls for revising the target date for launching the Gulf single currency until all committees and concerned parties have completed technical issues,” the ministry said in a statement cited by the Kuna news agency. The ministry, however, still expressed the support of the state of Kuwait for the project. Long road ahead for GCC single currency Opinion Arab News - 28 October, 2009 Author: John Sfakianakis At a regional finance ministers and central bank governors meeting over the weekend, officials revealed plans to establish a monetary council by January that would serve as a transition body for the GCC Central Bank in expectation of the single Gulf currency. They indicated the four states involved in the project were under pressure to ratify a monetary union agreement before an annual summit of Gulf Arab leaders in December. While the comments come as a show of support for the beleaguered project to create a European Union-style single currency, in our view momentum behind the project is still weak and we believe it could take four to five years before a single currency comes into circulation. We regard divergence of views among GCC, or Gulf Cooperation Council, states as a key factor holding back currency union. Institutional capacity building is also a prerequisite which needs to be addressed. Building the institutions Saudi Arabia was the first GCC state to ratify the monetary union deal while the other three states – Kuwait, Qatar and Bahrain – are likely to do so in the coming months. This is likely to happen prior to the annual summit of Gulf heads of state in December. Once the ratification process is complete, the four countries will establish a monetary council that would act much like the European Monetary Institute (EMI) that preceded the European Central Bank (ECB). The purpose of the EMI was to encourage cooperation between the national banks of EU member states. Upon creation of the ECB, the EMI was dissolved – similar to the process envisioned by the GCC. The Gulf monetary council would be governed by a board of directors comprising the central bank governors of member states and would be charged with developing a new timetable for issuing a single currency. It is also likely to appoint an independent executive director to help guide the project. The candidates for this role and their respective nationalities will provide insight into the backstage politics that characterise the GCC. Having the monetary council in place will be pivotal in pushing forward currency union. The body would hold meetings more frequently to streamline decision-making, although questions remain about how much monetary policy-setting powers the council would have. We view this as an important issue that demands further clarification. According to some indications, only the fully fledged Gulf central bank would be able to make decisions on monetary policy.
230
BPM- Weekly Report # 91 Zone 1-Asia
Obstacles remain, but much has been done A lot of work remains before a Gulf monetary union can reach fruition, especially following its shaky history. In 2001, the six member states of the GCC, which also includes the United Arab Emirates and Oman, agreed to set up a monetary union like that of the European Union. According to the plan, the Gulf currency would be issued on January 1, 2010. But the project was fraught with delays and eventually Oman dropped out of the plan in 2006. In March, the GCC abandoned an initial 2010 deadline for issuing common notes and coins. It said a monetary council would determine a new timetable for the issuance. The UAE, the region's second-largest economy, then dealt the biggest blow to the project to date when it withdrew from the plan in May in protest of the decision to base the regional central bank in Riyadh rather than Abu Dhabi. Without the UAE, Saudi Arabia's economy accounts for 63% of the currency union area, up from 47% prior to the UAE pullout. We think that for any union to be established, compromise is the name of the game. Still, Saudi Arabia’s role at this juncture is instrumental in driving the project forward. It is natural for Saudi Arabia to lead the process, due to its sheer economic presence, accounting for 44% of overall Gulf GDP in 2008 and 63% of the total population, according to official 2007 data. Saudi Arabia has deep institutional memory, experience and technical know-how to support the project, but losing key member states could weaken any union that does emerge. The remaining countries have rallied their support behind the plan since the UAE pullout and we believe that, at least for the medium- term, political support to push ahead remains strong. We also continue to think that the UAE’s participation in the future is plausible. Steps toward regional integration A single currency is expected to encourage further trade and financial integration, facilitate foreign direct investment, and foster the development of the GCC into an optimum currency area ex post even if the GCC grouping may not constitute one ex ante. GCC countries have achieved virtually unrestricted intraregional mobility of goods, national labor and capital. Prudential regulations and supervision of the banking sector are being gradually harmonized. Intra-GCC imports have more than tripled in size over the past 15 years, although their share in the overall imports remained steady and low at less than 9%. One could argue that GCC states have already fulfilled many of the preconditions for a currency union: they are mainly oil exporters (with the exception of Bahrain); are very open to trade and imported labor; have flexible labor markets in which even nominal wages can adjust; and have complete factor mobility within the GCC. Furthermore, they all have full convertibility. But a great deal of work remains to prepare for the common currency and the creation of a common, independent central bank. Monetary policy frameworks, payment and settlement systems, regulatory and supervisory structures, macroeconomic statistics, and other specific central bank functions have yet to be fully harmonized. Furthermore, Gulf countries have yet to agree on the management of reserves and nonreserve assets, and on the fiscal side, setting up a common accounting framework and adequate budgetary procedures would be a high priority in the period leading up to the
231
BPM- Weekly Report # 91 Zone 1-Asia
currency's introduction. Complete implementation of the Gulf common market, meanwhile, is crucial. The common market – which includes freedom of movement in labor, capital and goods and services – requires the adoption of a series of national laws. Toward this end, the GCC Secretariat, based in Riyadh, has developed dispute resolution mechanisms, including a common market committee, a ministerial level committee, and an arbitration center in Bahrain, and plans are underway to create a supranational court. Keeping currency union on track To keep the currency project on track, we believe the monetary council should push to launch the accounting unit of the single currency by the end of next year. This essentially means that the bloc would determine the individual exchange rate parities of each Gulf currency, marking the launch of an electronic currency much like the European Currency Unit which preceded the euro. In our view, once the accounting unit is unveiled it will become less likely that another state – particularly Qatar – would pull out of the project. Between the end of 2010 and 2014-2015, the monetary council and central bank could then arrange for the design and distribution of the common notes and coins. Chairing the monetary council next year will be the Kuwaiti central bank governor, who has defended his own country's decision sever its dinar's peg to the US dollar in favor of a basket of currencies comprised mainly of dollars. The region's other oil exporters maintain currency pegs to the dollar. In our view, the region is unlikely to move away from the dollar in the short and medium term. The single Gulf currency, meanwhile, is likely to remain pegged to the dollar in the beginning. The region is known more for its patience and long-term view than the simple vagaries of currency fluctuation. The dollar peg has provided a credible anchor for monetary policy, is easy to administer and has simplified trade and financial transactions. Pegged exchange rate regimes are also preferred by major oil exporters. Of the 26 countries for whom the oil sector accounts for more than 50% of total exports, 18 maintain conventional fixed currency pegs. Gulf dollar pegs came under scrutiny in 2007 and 2008 because the regional economic boom was out of sync with the economic trends in the United States, where the Federal Reserve started slashing interest rates in September 2007, compelling the GCC to follow suit despite escalating inflation. The pegs thus hampered the ability to the region's central banks to set appropriate monetary policy. Depending on where the GCC and US economic cycles stand at the time of union, the Gulf could opt for one of four different exchange rate mechanisms: pegging the single currency to a currency basket, the IMF's Special Drawing Rights or the export price of oil. Alternatively, the Gulf could choose to adopt a managed flotation or a free float. In deciding a long-term currency policy for the Gulf currency, the Gulf central bank would need to consider the importance of the oil sector, exports and government revenues. Any currency policy should also take into account the non-oil private sector – a stronger currency would make exports less competitive but lower the cost of imports. Striking the right balance will be crucial for the region's competitiveness. Yemen on the agenda
232
BPM- Weekly Report # 91 Zone 1-Asia
Plans to include Yemen in GCC integration plans appear to be gaining momentum. Gulf policymakers are discussing extending a GCC high-speed railway network, estimated to cost around $ 23 billion, to Yemen through its border with Oman. The rail network – among plans for $ 100 billion worth of rail projects in the Gulf – will span 1,940km, with each GCC state contributing a share to its start-up capital. Yemen’s political and economic stability is of crucial strategic importance to all the GCC states, and how the bloc deals with the country represents and test case for the region’s economic and political resolve. Yemen is facing insurgency in the north where Zaidi Shiite Muslims took up arms against the government in 2004, as well as frequent clashes with separatists in the south. In our view, GCC states, in particular Saudi Arabia, remain committed to support Yemen economically at this stage to ensure unity and stability of the country. — Dr. John Sfakianakis is the chief economist at Banque Saudi Fransi 'GCC investor confidence high' Shuaa Capital, the region's leading financial services institution, on Monday issued its October GCC Investor Sentiment Report, the only report of its kind for the Gulf markets. Commenting on the Index findings Oliver Schutzmann, Chief Communications Officer of Shuaa Capital and author of the Investor Sentiment Report, said: "It is very encouraging to see the GCC Index on the rise for the third month running, and not far off its peak of 133.5 in June. The GCC Real Estate, Construction & Materials sector improved dramatically, turning positive for the first time since April 2009 after a significant jump from -13.7 per cent to 13.7 per cent of balance1 of investors expecting a rise in profitability . "The continued improvement in the GCC Investor Confidence Index was largely driven once again by the positive movement in the balance of investors' perceptions of current regional economic conditions. In October this figure moved to 27.5 per cent from 15.7 per cent last month and a significant improvement on July's recording of -15.0 per cent in July." "The UAE Index fared particularly well this month after it jumped 9.2 per cent to 130.4. The UAE has improved consistently in the Survey's seven month history. Driving the UAE's gain was investors' opinion of the current state of its economy, which rose by a massive 31.4per cent on balance to 21.6 per cent. GCC rail network progressing well: Saudi Preparations to implement the proposed railway network linking all the GCC countries have been progressing well, Abdul Aziz Al Ohaly, Deputy Minister of Transport of Saudi Arabia said yesterday. Al Ohaly was in Doha to attend the UITP MENA Congress and Showcase which concluded at Grand Hyatt Hotel yesterday. “Feasibility study on the railway project has already been completed. A meeting of the GCC Transport ministers in Muscat recently had assigned a panel to conduct detailed studies on the project. This shows that the project is still alive and is in progress,” Al Ohaly told this newspaper. He, however, said it was too early to say when construction of the railway lines would actually begin and how long it would take to complete the project. He said Saudi Arabia had been investing heavily on developing its public transport system. “Only three per cent of our population
233
BPM- Weekly Report # 91 Zone 1-Asia
are using public transport, despite all the developments in this sector. Ours is a scattered country, geographically and this is the main challenge we are facing in this field,” said the minister. Al Ohaly, who is also chairman of the UITP Middle East and North Africa Division said the Doha conference was a success in terms of participation as well as the issues discussed. GCC-EU free trade treaty possible by year-end The much-delayed free trade agreement between the Gulf Cooperation Council and the European Union could be signed by the end of the year or early next year, as both the economic blocs have sorted out almost 90 per cent of contentious issues relating to trade and economics, a top GCC official said. The negotiations for a free trade hit snags, last year when the European Union insisted on the politico-economic conditions, including full ownership of property and businesses foreigners, besides other matters of political significance. Mohammed A. Al-Haif, Director of the Customs Union Department at the office of Secretary General of the Arab Gulf Cooperation Council, or AGCC, in an interview with Khaleej Times said that the issue of export duties would also feature prominently in the next round of talks. He did not say when the next round of talks were likely. Al Haif said that the Finance Minsters from the GCC bloc would meet in Doha next week to prepare the agenda for the GCC Summit, which would take place in Kuwait in January next, to review among other matters, the progress made by the GCC customs Union, which was formed in 2002. Arabian Gulf leaders are eager to remove barriers to the free float of goods to boost the trade and commerce, he said. The GCC Heads of state would also decide on the removal of all custom check posts from the seven member nations, to allow custom duty free movement of goods between the member states, without producing any documents on the borders, he said. This year, the bloc has successfully added more than 125 items to its list now seen at 959 -items that can be imported across GCC without paying any customs duty lifting significantly the trade exchanges. The new items added recently to the list include computers, mobile phones, books and newspapers, foodstuff and tens of other articles commonly traded. On the delay in the introduction of the Value Added Tax, Al Haif said that some members have presented fresh proposals on the new tax regime, which would replace the five per cent customs duties currently imposed on imports across the region. Slipping stocks, oil price sap sentiment on Gulf markets Slipping global stocks and a fall in the oil price reduced investor sentiment across Gulf Arab markets yesterday, leading to declines on most regional bourses. A decline was triggered by market retreat in the United States on Monday as well as three days if falls in oil prices. In the United Arab Emirates, Dubai’s index ended 0.8 percent lower after seeing its largest one-day increase in four weeks on Monday. National Bank of Abu Dhabi also reported quarterly results towards the end of the session. Trading on the stock was halted
234
BPM- Weekly Report # 91 Zone 1-Asia
ahead of the results. Abu Dhabi’s largest lender reported a jump of 41 percent in quarterly profit, just short of analysts’ average expectations. The Saudi measure, which is more correlated to oil prices, slid 0.5 percent to 6,533 points, with most major stocks witnessing selling pressure. Samba Financial Group, the second largest listed Saudi bank, retreated 3.5 percent. “The Saudi market is more correlated to global oil prices,” says Moussa Haddad, head of Middle East equity trading desk at NBAD. “There is no major news that is driving the market down today. It is close to the end of the month when some investors start closing positions, nothing significant in that.” Indices in Oman, Bahrain and Qatar all slipped as a cautious attitude curbed investor enthusiasm. Although third-quarter earnings from Oman Cement Co beat expectations, market sentiment remained subdued. “At the current time, traders are still very cautious of global and regional markets,” said Adel Nasr at United Securities. Only Kuwait’s benchmark managed to end slightly higher, with investors picking up banking stock which were unceremoniously dumped in Monday’s session. National Bank of Kuwait rose 1.6 percent after its quarterly earnings beat forecasts. Kuwait Finance House climbed 1.6 percent after its chief executive said provisions, which stood at $ 1.6bn, were declining. HIGHLIGHTS: DUBAI: The index retreated to 2,319 points. ABU DHABI: The index slipped to 3,145 points. SAUDI ARABIA: The measure fell to 6,533 points. OMAN: Muscat’s benchmark retreated 0.5 percent to 6,490 points. QATAR: The index slipped 0.3 percent to 7,315 points. BAHRAIN: The index declined to 1,539 points. KUWAIT: The measure climbed 0.3 percent to 7,476 points. GCC can get up to $ 1trn in oil surplus Emirates Business 24/7 - 28 October, 2009 The six-nation block of GCC is slated to accumulate $ 600bn (Dh2.2 trillion) to $ 1trn oil surplus in the next five years, said the regional head of International Monetary Forum (IMF) yesterday. Dr Masood Ahmed, IMF's Director for Middle East and Central Asia Department, said surplus revenues this year may have dipped to $ 50bn due to low oil prices and export volume but they will begin to grow again starting next year. "Oil surplus this year is $ 50bn, next year it will be $ 150bn and is set to be $ 600bn to $ 1trn in the next five years. During these years the GCC should begin to save again for the next rainy days." Due to the deleveraging process of almost every economy, fiscal revenues from exports fell to $ 350bn this year from $ 570bn in 2008, said Ahmed, who was speaking at Dubai Economic Forum. "Subprime has not been much of the problem here but the Gulf has not been immune to global deleveraging process," he said. "This can be reflected in the unprecedented increase in the CDS spreads in this first quarter of 2009. SAUDI ARABIA
235
BPM- Weekly Report # 91 Zone 1-Asia
International Front First Saudi relief plane arrives in Niger In implementation of the directives of the Custodian of the Two Holy Mosques King Abdullah to provide humanitarian aid to Niger to alleviate the suffering of the people affected by the torrential rains that fell on the city of Agadez causing enormous flooding, the first Saudi relief plane arrived in Niamey Airport in Niger on Tuesday. The plane carried 114 tons of blankets, foodstuffs and medical supplies. The Saudi Ambassador to Niger Ibrahim bin Ali Abdulhaq who received the plane said that Saudi Arabia under the leadership of the King of Humanity, the Custodian of the Two Holy Mosques King Abdullah, has been in the forefront of assisting people in need all over the world. He noted that Niger had already received 198 tons of dates provided by the King as a gift to the people of that country. Saudi FM Meets Belgian Crown Prince Saudi Foreign Minister Prince Saud al Faisal met here Sunday with Crown Prince Philippe of Belgium , who is currently visiting Riyadh. Talks during the meeting dealt with issues of common interest between the two countries. The Custodian of the Two Holy Mosques King Abdullah bin Abdulaziz of Saudi Arabia met last night with Belgian Crown Prince and discussed with him prospects of cooperation between the two countries and ways of enhancing them in various fields. Saudi Arabia, Belgium discuss cooperation in carbon field Saudi Arabia, which plans to inject carbon dioxide into the world’s biggest oil field by 2013 to trap climate-warming gas and improve oil production, has discussed plans with Belgium to cooperate in the field of carbon capture and storage (CCS). The plans will help to undertake joint research projects, disseminate and exchange up-todate information, and evaluate where Riyadh and Brussels stand in terms of CCS research and development. “Cooperation in the field of CCS was one of the major topics discussed with senior Saudi officials during Sunday’s meetings,” said Bart Ouvry, a spokesman for the Belgian Ministry of Foreign Affairs, here on Sunday. Ouvry was referring to talks held on Saturday between Foreign Minister Prince Saud Al-Faisal and Belgian Foreign Minister Yves Leterme. Referring to the talks with Prince Saud, the Belgian spokesman said that “two important subjects — the Middle East peace process and Afghanistan were discussed besides several other issues of common concerns.” Social Front 10 million festival visitors bring in SR1.2 billion A Saudi Commission for Tourism and Antiquities (SCTA) report has revealed that the Kingdom’s summer festivals attracted 10.3 million visitors who spent SR1.2 billion. The SCTA’s Tourism Information and Research Center, which produced the report, said that surveys were conducted on 13 festivals in Jeddah, Riyadh, the Eastern Province, Hail, Taif, Madina, Najran, Al-Baha, Bureida, Unaiza, Al-Jouf and Al-Ahsa. Most
236
BPM- Weekly Report # 91 Zone 1-Asia
visitors, the report said, came with families, although the number of visitors coming alone or with friends was higher by 45 and 33 percent in Najran and Riyadh, respectively. Try imprisonment before sentencing: Saudi Shoura member An advisor to the Royal Council who is a prominent Islamic scholar has launched an outspoken attack on judges for handing out excessive prison and lashing sentences. Sheikh Abdul Muhsin Al-Obaikan, who is also a member of the Shoura Council, said there was no Islamic justification for such excessive sentences. It had been proved, he claimed, that the Prophet (peace be upon him) had issued no more than 100 lashes for an offence. He jokingly said judges would not be able to handle a 10-year prison sentence, let alone be on the receiving end of a whip. He was speaking on Monday at a weekly cultural event hosted by Abdul Makhsout Khoja in Jeddah. Al-Obaikan was responding to a question from Abdullah Mana’a, who criticized whipping sentences that have exceeded 1,000 lashes in recent times, claiming they were damaging the country’s reputation and the wider Muslim community. Al-Obaikan also criticized judges who did not have the capacity to preside over certain cases, adding “some would judge in some issues without reference to documents and would only give their opinion, which is not acceptable in judging.” Nuclear Energy Front Saudi Shoura endorses nuclear safety report The Shoura Council endorsed a nuclear safety report proposed by the Health and Environment Committee at its weekly meeting on Sunday. Although the majority of members were unanimous on the need to sign the proposals, a number of members disagreed with a section in the report that suggested that Israel poses less of a nuclear threat. “The suggestion that Israel is more stable therefore less of a threat is inaccurate,” said Shoura member Mazin Balila. Balila said there was a need to hold talks with the “brotherly state” of Iran. “A joint agreement on nuclear safety in the region is needed between the two countries,” he said. Mohammed Al-Fadel said the danger that the Israeli arsenal poses should not be underestimated, adding that it is wrong to describe Israel as stable given that it is an occupying regime. Other members said the report failed to mention the obligations that the Saudi government would have to follow in case the report is signed. “Before joining we should not look at the incentives but obligations in doing so,” said Yehya Al-Samaan, another Shoura member. The question at hand “is whether the Kingdom’s regulations and laws are ready to meet the obligations that come by signing the agreement,” he said. Economic Front Half of GCC’s power projects in Saudi Arabia Ongoing power projects in the GCC have been estimated to be worth up to SR607.5 billion, with Saudi Arabia accounting for around 50 percent of the total investments according to recent industry reports.
237
BPM- Weekly Report # 91 Zone 1-Asia
The massive power infrastructure development initiatives across the country provide a perfect backdrop for GCC Power 2009 Conference and Exhibition. Slated on Oct. 19- 21 at the Riyadh Marriott Hotel, the forum will serve as a centralized venue for regional and international industry players to tap into the world’s largest energy market. The trade conference and exhibition will feature two main events: 5th GCC CIGRE International Conference and the 14th Exhibition for Electrical Equipments. The GCC CIGRE conference is held annually in different GCC countries and is considered by the Council as its most important event. Saudi Arabia was chosen this year because of its leadership in the power field. The GCC arm of CIGRE was established by the GCC Ministers of Electricity & Water in April 1985 to facilitate technological and technical information exchange among the region’s member countries. Edward Rabbat, deputy general manager, Riyadh Exhibitions Company, said “the significant number of power projects in Saudi Arabia has helped boost demand for innovative products and services as well as technologies and expertise in renewable power resources. GCC Power 2009 Conference and Exhibition creates an interesting business-to-business platform for suppliers, technology vendors, government and corporate decision-makers and other trade visitors to identify and discuss evolving challenges in the regional power industry, and at the same time cultivate collaborative efforts among all industry stakeholders.” Saudi demand for luxury cars on the rise The demand for luxury cars has been increasing in the Kingdom despite the world economic crisis, observed Abdullah Saleh Al-Shamashy executive director of EXCS Exotic Cars Exhibition at the Fours Season Hotel in Riyadh. Some 70 cars costing SR60 million was showcased at the 3rd Luxury Car Expo opened by Deputy Transport Minister Abdullah bin Abdul Rahman Al-Muqbel. Speaking to newsmen, Al-Shamashy recalled that during the first show SR20 million was netted and at the next show the amount was SR37 million. “This amply demonstrates the increase of sales of the luxury cars in the Kingdom because Saudi Arabia maintains an economy which has withstood the global economic problem. We hope to sell even more vehicles this time,” he said, adding that the show will remain open on Thursday. He said that the Kingdom, the largest automobile market in the Middle East, enjoys 50 percent of the total market in the region. He pointed out that some of the exhibits were being displayed in the show for the first time in the Middle East and in Asia. “The vehicles are strong, fast, modern and people can travel in comfort,” Shamashy said. Olaf Sewald, sales director of Wiesmann, said that his company sold nine vehicles from his Premium Collections Group but during the year 2010, the company has targeted 15 vehicles for sales in the Kingdom. The Italian car, Pagani, was priced at 1 million euros and the designer, Horaco Pagani, said that he produced only 20 cars a year. “We are happy that we are entering a market which is famous for the sale of luxury cars.” He noted that every Pagani manufactured by him was different from the other and that all were handcrafted. Saudi stocks uptick to continue Most Gulf stock markets gained fresh ground this week, particularly Saudi Arabia, as investors looked favorably to the rising oil prices and early reports of third quarter
238
BPM- Weekly Report # 91 Zone 1-Asia
results, financial analysts said Friday. They noticed that crude prices would serve as a “catalyst” for regional bourses in the forthcoming weeks. On Thursday, bourses ended the week on a positive note but Dubai, where weekly gains were partly erased by profit-taking, while Abu Dhabi closed higher thanks to some individual stocks. Traders and analysts said the generally positive outcome came from rising oil prices and the third quarter reports from listed firms. They said that the upward movement of oil prices would serve as a catalyst for the Gulf stock markets in the coming weeks. Saudi non-oil output to grow 3.6% in 2010 Saudi Arabia’s economy will regain lost ground next year spurred by higher oil prices and strong domestic growth but unemployment, legislative reform and dependence on oil revenues remain concerns, Morgan Stanley (MS) said in a research note Thursday. Nonoil output in the Middle East’s largest economy is expected to grow 3.6 percent next year and 4.7 percent in 2011, and higher oil prices will boost external balances, the US investment bank said in a note. “Saudi Arabia has managed to weather the global economic downturn and its near-term outlook remains positive,” the note said. JCCI, Russian Economic Federation sign joint cooperation pact A three-day Saudi-Russian business forum and exhibition, which includes the latest Russian products, opened under the banner “New Horizons of Trade and Economic Cooperation” at the Jeddah Chamber of Commerce and Industry (JCCI) Sunday. During the forum, the JCCI signed an agreement for joint cooperation with officials of the Russian Economic Federation. Mazen Batterjee, the JCCI vice president, on behalf of the JCCI president, inaugurated the forum in the presence of Ambassador Mohammed AlAhmed Al-Tayeb, director general of the Ministry of Foreign Affairs in Makkah region; Mustafa Ahmed Kamal Sabri, the JCCI Secretary-General; Vladimir Evtushenkov, president of the Arab Russian Business Council; S. Kuznetsov, the Russian Consul General, and a large number of businessman and entrepreneurs. The forum is being held with a view to developing investment opportunities for entrepreneurs and investors in the Kingdom and assisting in contract deals and joint ventures in various fields. Oil & Gas Aramco plans to start gas plant Saudi Aramco's gas processing plant at Khursaniyah was expected to start partial operations in a few weeks, two contracting sources said yesterday. Delays in construction at the plant delayed the whole 500,000 barrels per day Khursaniyah oilfield development project, one of the largest in Saudi expansion plans as the kingdom boosted crude production capacity to 12.5 million bpd. Khursaniyah oilfield started output in September last year, even though the gas plant was incomplete. The whole project was initially scheduled to start in December 2007. A shortage in labour and materials led to the delay at the gas plant. The plant has capacity to process around one billion cubic feet per day (cfd) of sour gas from the Abu Hadriya, Fadhili and Khursaniyah fields.
239
BPM- Weekly Report # 91 Zone 1-Asia
Bahrain and Aramco in talks to build pipeline Bahrain is now in talks with oil giant Saudi Aramco over plans to move ahead with constructing a new pipeline between the two countries. Oil and Gas Affairs Minister and National Oil and Gas Authority chairman Dr Abdulhussain Mirza said discussions focused on what route the proposed pipeline would take to move crude from Saudi Arabia to Bahrain. "We are now in discussions on the design and the route," the minister said on the sidelines of the Offshore Middle East Conference and Exhibition, being held at the Bahrain International Exhibition and Convention Centre. The more than 100km project, expected to cost $ 350 million, is expected to take off by the end of the year. The three-day event is being held under the patronage of Dr Mirza and is organised by Pennwell Corporation. UAE International Front UAE and Palau establish ties United Arab Emirates and the Republic of Palau have issued a joint statement on the establishment of formal diplomatic relations between the two countries at ambassadorial level as of Oct.16, 2009. The communique was signed on Friday at the Permanent Mission headquarters of the UAE to the United Nations in New York by Ambassador Ahmad Abdul Rahman Al Jarman, UAE's Permanent Representative to the United Nations, and by the Ambassador of the Republic of Palau Stuart Beck, Palau's Permanent Representative to the United Nations, in the presence of the members of the diplomatic missions of both countries. The joint statement, which was filed with the United Nations in both Arabic and English, mentioned their mutual willingness to promote mutual understanding and strengthen the friendship and co-operation between the two countries in the political, economic, social, humanitarian, cultural and scientific areas based upon the principles and purposes of the UN Charter and the norms of international law. UAE wins Unesco body membership The United Arab Emirates was elected as a member of two Unesco councils; The Intergovernmental Council of the Management of Social Transformations (MOST) Programme and the Intergovernmental Council for the Information for All Programme (IFAP). The country's election to the two councils was made during the international organisation's 35th conference in Paris. UAE's Ambassador to France Abdullah Nasser Al Ameri expressed pleasure at the country's success in securing membership in the two vital councils within the Unesco. The country's election to the two councils was seen as a fruitful outcome to the efforts made by Abdullah Musabah Al Nuaimi, UAE's Permanent Representative to Unesco, to secure the membership. UAE establishes diplomatic ties with Haiti The UAE has established a diplomatic ties with Haiti, a joint statement signed here last night formally establishes diplomatic relations at ambassadorial level from yesterday October 21, 2009.
240
BPM- Weekly Report # 91 Zone 1-Asia
UAE Permanent Ambassador to the United Nations, Ahmed Abdul Rahman Al-Jarman, signed the statement for his side while his Haitian counterpart, Leo Merores also signed for his country in a short ceremony held here at the UN headquarters and witnessed by some members of the diplomatic missions of the two sides. The joint statement, which was deposited at the UN headquarters in Arabic, English and French, expresses the desire of the two countries to achieve mutual interest of their peoples and to promote friendship and cooperation between them in the political, economic, social and humanitarian areas, in accordance with the UN Charter and international law, particularly in the areas of respect for and boosting of global peace and security, equality, national sovereignty, independence, regional peace and non-interference in the internal affairs of other countries according to the Vienna convention of April 18, 1961. Yemen hails directives of UAE President for dispatching relief aid Yemen has lauded the instructions of President His Highness Sheikh Khalifa bin Zayed Al Nahyan, on dispatching urgent relief aid to those affected in the recent incidents in the northern Yemeni provinces. It reiterated that the move further boosts humanitarian initiatives of Sheikh Khalifa towards the Yemeni people, adding that such stances ease lives of the needy people. UAE, Syria hold talks The Syrian people and Government back the right of the UAE to sovereignty on the three Islands - Abu Musa, Greater Tunb and Lesser Tunb - occupied by Iran since the year 1971, stressed today Speaker of the Syrian Parliament Dr Mahmoud Al Abash. In a statement to WAM, the Syrian official said Syria calls for a solution to the issue of the islands through the relevant international bodies. He expressed hopes that "brothers in the UAE would regain their rights through the international legitimacy which both Syria and the UAE respect." Following a meeting here with visiting UAE National Federal Council (FNC) Abdul Aziz Al-Ghurair, Al-Abrash said he is visiting Iran early next year for talks on relations between the Syrian Parliament and The Islamic Consultative Assembly of Iran (Parliament). He noted the strong Iranian-Syrian relations expressing hopes that they would be in the interest of the peoples of the UAE and Syria. Moreover, the Syrian Parliament Speaker hailed the strong relations between the UAE and Syria under the wise leadership of President His Highness Sheikh Khalifa bin Zayed Al Nahyan and Syrian President Bashar Assad. UAE, Syria make bilateral headway Syrian president Bashar Al Asad has instructed his government to put into force all bilateral agreements between the UAE and Syria in a way that opens up investment channels in all sectors for companies and individuals.Federal National Council Speaker Abdul Aziz Abdullah Al Ghurair, heading an FNC delegation to Syria, announced this on Monday after a meeting with the Syrian president. Speaking to Khaleej Times, Al Ghuriar said, “We tackled a range of issues, among them opening Syrian airfields to further trade flights with the UAE.” The Syrian president gave
241
BPM- Weekly Report # 91 Zone 1-Asia
an assurance Syria would amend laws to enable a UAE national to inherit or possess real estate. “This is not possible under existing laws.” The question of Syrian workforce in the UAE was also addressed. “A request was made to remove obstacles such as restrictions on job advertisements in Syrian newspapers,” Al Ghurair added.“We talked about enhancing the role of the Arab Inter-Parliamentary Union to act in the manner of the European Parliamentary Union,” Al Ghurair said Swine flu H1N1 influenza under control: Minister Ministry of Health and the National Authority for Emergency and Crisis Management launched on Saturday the second phase of the national campaign to raise awareness on combating the spread of H1N1 virus. Economic Front Gulf stocks drop but UAE benchmarks buck trend Dubai and Abu Dhabi indexes rose yesterday as real estate and banking stocks outperformed on the back of strong third-quarter earnings results, while other Gulf Arab bourses fell on disappointing corporate reports. UAE economy sound: Suwaidi Current situation of the UAE economy is much better than that of last year according to the International Monetary Fund (IMF), Governor of UAE Central Bank Sultan Bin Nasser Al Suwaidi said on Sunday. "The IMF predicts the UAE economy is nearing the point of balance and this positive result is attributed to China's allocation of $580 billion to development which pushed average oil prices to $ 65 per barrel in 2009,'' Al Suweidi said during a joint meeting with the Federation of Chambers of Commerce and Industry (FCCI) and business community. UAE electronics market poised for boom Dubai Chamber of Commerce & Industry released an analysis highlighting the contribution of the consumer electronic goods market to the economy of the country in light of the personal computers, notebooks and accessories making up the dominant share of consumer spending in 2008. The study, which is based on a recent Business Monitor International (BMI) report on the UAE consumer electronics market, puts the spotlight on the UAE's geographical position as the country is a major electronics trading hub, re-exporting consumer electronic items to the Gulf, South Asia, the Commonwealth of Independent States (CIS) and Africa. Dubai is a major trading centre for the UAE electronics market accounting for 80 per cent of UAE's total exports and 85 per cent of re-exports. KUWAIT International Front
242
BPM- Weekly Report # 91 Zone 1-Asia
US Special Representative to Muslim Communities to visit Kuwait US Special Representative to Muslim Communities Farah Pandith will be visiting Kuwait on Sunday, a senior US official told KUNA here late Thursday. The official told KUNA that this is Pandiths "first trip to the Middle East as Special Representative to Muslim communities." Pandith is expected to meet with "civil society and government leaders, as well as students and youth, in order to listen to their concerns and discuss how we can form meaningful partnerships to implement Secretary Clintons vision of engagement with Muslim communities around the world," the source indicated. Pandith was appointed back in June by US Secretary of State Hillary Clinton to head the new Office of the US Special Representative to Muslim Communities. Special Representative Pandith, a Muslim, is responsible for executing the Administrations efforts to engage with Muslims around the world on a people-to-people and organizational level. The position was created for the first time in the US history. Somali president arrives on official visit Somali President Sharif Sheikh Ahmad arrived here Sunday on an official, two-day visit during which he is set to hold talks with His Highness the Amir Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah. Kuwait, France sign new defense pact Kuwait's First Deputy Prime Minister and Minister of Defense Sheikh Jaber Al-Mubarak Al-Hamad Al-Sabah wrapped up yesterday an official visit to France during which he signed a new defense pact, described as "complimentary and in activation" of the 1992 treaty. The new agreement was signed by Sheikh Jaber and his French counterpart, Herve Morin. The Kuwaiti official had stated that the renewed pact is flexible for the political leadership and the armed forces regarding the strategic exchange. It "allows clearer flexibility for the political leaderships and paves further way for strategic cooperation for Kuwaiti and French forces," he stated. He affirmed that the pact, complimentary to the treaty that had been signed in 1992, stipulated cooperation in training, joint drills as well as equipping the Kuwaiti forces with state-of-art French arms. The agreement was a result of keenness of the political leadership in Kuwait and France to renew the pact, he said. French President Nicolas Sarkozy visited Kuwait last February and agreed on a strategic partnership. Defense ministers of both countries discuss renewal of the defense and military agreement, originally signed in 1992. Sheikh Jaber had said Kuwait was interested in purchasing French Rafale warplane due to its distinguished features. He hoped that "we soon see this plane within Kuwait Armed Forces. The issue is being examined in a flexible and serious manner and will happen through constitutional and legal channels in order to get this plane to join the Kuwait airforce fleet. Kuwait press crowned freest in the Arab World: Media watchdog Although Kuwait has maintained the highest rank in the Arab World in the Reporters Without Borders World Press Freedom Index, issues such as self-censorship have remained an encumbrance to free press. According to a French-based media watchdog,
243
BPM- Weekly Report # 91 Zone 1-Asia
against the backdrop of a drastic decline in the media freedoms in the Middle East, Kuwait press is the freest in the Arab world. In its 2009 annual Worldwide Press Freedom Index issued on Tuesday, Reporters Without Borders rank Kuwait press freest in the region. Kuwait takes up 60th rank followed closely by Lebanon (61st) and the United Arab Emirates (86th), Qatar (94) and Oman (107). Saudi Arabia is at the bottom of the region's ranking on the 163th place. Ban urges Iraq, Kuwait to achieve progress Secretary-General Ban Ki-Moon late Monday welcomed the "fragile" progress on the issue of missing Kuwaiti and third-country nationals, and urged Iraq and Kuwait to redouble their efforts in the coming months, with the support of the Security Council, to achieve more "significant" progress. "I welcome the fact that the first six months of the confidence and co-operation-building period have shown an indication of movement on the missing Kuwaiti and third-country nationals issue," Ban told the Security Council in a report. "I commend the concrete effort undertaken by Iraq to meet its responsibilities under Paragraph 14 of Security Council Resolution 1284 of 1999. I appreciate Kuwait's positive and supportive attitude," he added. Political Front Kuwait court rules, women MPs can shun hijab Kuwait's constitutional court on Wednesday rejected a petition brought by four voters to declare invalid the election of two women MPs because they refuse to wear the hijab headscarf. The decision of the court, whose rulings are final, was announced to reporters by the chairman of the court, Yussef Ghanam Al Rashid. Two of the four women who became Kuwait’s first female MPs in May refuse to wear the hijab, which has also been spurned by the only woman appointed as a minister in the Kuwaiti government following the May election. The voters said the two MPs had flouted a clause in an election law stipulating that women voters and candidates must comply with Islamic Sharia regulations, including wearing the hijab. Explaining its decision in a written verdict, the court said the election law fails to specify the type of regulations women must adhere to or whether that included wearing the hijab. It also pointed out that the Kuwaiti constitution, which is higher than any law, guarantees personal freedom and freedom of faith and does not discriminate between people over their religion or sex. The emirate’s fatwa department, which issues religious edicts, ruled in early October that Muslim women must wear the hijab in line with Islamic sharia law. Islamist MPs are demanding the authorities enforce the fatwa, but their liberal colleagues say it is non-binding, insisting the rule of law and the constitution should be the only points of reference. Kuwait does not enforce any dress code on women among the general public, because of the constitutional guarantee of personal freedom. The constitutional court also scrapped the election of MP Badi Al Dossari and declared former candidate Khaled Al Adwah a winner after finding mathematical errors in calculations of the number of votes they got in the May elections. After re-calculating the votes, the court said it found that Adwah had secured more votes
244
BPM- Weekly Report # 91 Zone 1-Asia
than Dossari. The verdict does not change the composition of the house, as both men are tribal representatives. MP rejects committee's 'Islamist domination' MP Faisal Al-Duwaisan announced that he will run for membership of the parliamentary negative phenomena committee, and said that if he is elected as a committee member, he would also contest for the leadership position. He rejected "Islamist dominance of the committee", and called for its role to be restricted to preparing studies for submission to the Parliament. Revealing his plans in an interview with Al-Watan, Al-Duwaisan also advised the Cabinet to conduct a reshuffle to protect its members from a flurry of questions during the forthcoming parliamentary term and elaborated that he saw interpolation motions as imminent. He also suggested that the Cabinet contains "elements of aggravation" in the form of ministers who seek to avoid responses to questions and stated that while cooperation between the two governing authorities is present to a certain degree, it is negatively affected by the provocative statements of some MPs. Al-Duwaisan also criticized the local media for the manner in which they present political news, and accused them of overhype. He alleged that a number of government ministers have displayed a lack of commitment to following a schedule and suggested that they lack organization. He claimed that each ministry had several people who mislead the ministers into overlooking rampant corruption. The veteran MP asserted that Kuwait's current business-related legislation meant that it is presently incapable of becoming a global commercial center, reported Al-Watan. On the contentious issue of citizens' loans, Al-Duwaisan called on the Cabinet to adopt a more flexible approach to the subject, while criticizing the proposed solution based on utilizing the insolvency fund. He said this would only benefit the banks despite their violation of the Central Bank of Kuwait's regulations. The MP also called on the Cabinet and the Parliament to co-operate to enforce bedoon people's civil rights. Meanwhile, the parliamentary legislative and judicial committee has approved the draft law on financial disclosure for senior officials, as well as another draft law on re-establishing the fatwa and Legislation Committee as an independent authority. In addition, it also approved a proposal submitted by MP Mohammad Hayef to seek the help of retired officials for work at state ministries. In other news, a number of Islamist MPs held a meeting at fellow MP Mohammed AlMutair's diwaniya, at which they discussed the parliamentary committees' priorities, leadership, and membership nominations, along with strategies for co-ordinating with other blocs. In the meantime, tension has continued to escalate over the accusations of Interior Minister, Sheikh Jaber Al-Khalid's involvement in the contentious elections billboards case, with MP Musallam Al-Barrak renewing his allegations against the minister, claiming he will reveal more facts at the inaugural session regarding the case. MP Dr Hassan Jowhar however, has urged the temperate use of constitutional tools, and said that he refuses to support unnecessary grilling sessions. On another issue, MP Naji Al-Abdulhadi insisted that no legislation on resolving the issue of citizens' loans can be produced until a consensus is reached between the Cabinet and the Parliament. AlAbdulhadi revealed that he had presented a new proposal for resolving the issue based mainly on increasing the number of beneficiaries eligible for the insolvency fund,
245
BPM- Weekly Report # 91 Zone 1-Asia
reported Al-Watan. With regard to other issues, MP Saleh Ashour called on the Cabinet to pay financial compensation to Hajj convoy organizers for the losses incurred by them as a result of low pilgrimage numbers swine flu concerns. In another development, MP Dulaihi Al-Hajri revealed that he will contest again for the position of Parliament Secretary. Social Front Day of fines and grilling The Criminal Court yesterday fined two MPs KD 3,000 each for issuing highly critical statements against government officials, including the prime minister, that were deemed offensive to them. Two newspapers were also fined the same amount for publishing the statements. The court convicted Islamist MP Waleed Al-Tabtabai for strongly criticizing Prime Minister Sheikh Nasser Mohammad Al-Ahmad Al-Sabah over allegations of wrongdoings in the scheme to send patients for treatment abroad. Tabtabai denied after the ruling that he has violated the law, saying that he will challenge the ruling before the court of appeals. In the ruling, Al-Watan newspaper was fined a similar amount for publishing Tabtabai comments. The same court fined MP Hassan Jowhar and Annahar newspaper after the lawmaker issued statements highly critical of the interior minister over measures taken against Bedoons, or stateless Arabs which the newspaper published. The two MPs were tried on charges of committing press misdemeanors under the country's press and publications law. In the meantime, the public prosecution yesterday questioned MP Khaled Al-Tahous over allegations of slander against Oil Minister Sheikh Ahmad Al-Abdullah Al-Sabah and a number of oil executives. Kuwait activists divided over single-constituency bill Political activists expect that the proposed one-constituency bill will not be discussed by the National Assembly in the near future. The draft law is aimed at turning Kuwait into a single constituency. Activists were divided on the urgency of the bill that calls for the amendment of the Election Law. A section of activists interviewed by the Kuwait Times said that the country is passing through a phase of financial and economic insecurity, and that the single -constituency bill is not of top priority at the moment. Other views suggested that bringing up the issue at present only serves specific campaigns in order to gain voters' popularity. The parliamentary Interior and Defense Committee recently passed a proposed amendment to the election law. According to this, polls should be held on the basis of a single constituency, as opposed to the existing fiveconstituency system. However, MP Jamaan Al-Harbash, Chairman of the committee said that this approval of the proposed law was only on an idea and the devil is in the details. Kuwait eyes mega projects Kuwait plans to spend KD18 billion over the next four years on 250 massive projects, a newspaper reported yesterday. The projects are included in a four-year program approved by the cabinet on Monday and will be sent to parliament later this week, sources said.
246
BPM- Weekly Report # 91 Zone 1-Asia
The daily did not name any project but Kuwait, awash with cash from oil revenues, has been planning a new business hub dubbed Silk City as well as a new modern harbor, a railway and metro system. The plan which runs from the current 2009/2010 fiscal year until 2012/2013 will focus on boosting the private sector's role in the domestic economy. Kuwait's private business accounts for just a quarter of gross domestic product. The emirate is estimated to have foreign assets of close to 230 billion dollars, run by its sovereign wealth fund, despite sharp losses in the past year due to the global economic downturn. The Gulf state has been vying to diversify its economy but wrangling between parliament and the government has delayed key projects. OPEC's fourth largest producer sits on about 10 percent of global oil reserves and pumps about 2.2 million barrels per day. It has a native population of 1.1 million besides 2.34 million foreign residents. Economic Front Kuwait, Bahrain bank profits fall Major Kuwaiti and Bahraini banks reported a sharp decline in third-quarter profit yesterday as they raised provisions to cover bad loans to Saudi firms. One lender, Kuwait’s Gulf Bank said it expected bad loans would weigh on profits up to mid-2010. The bank, which did not publish a net profit or loss figure for the quarter ended September 30, also used its entire operating profit of $ 147.1m from the third quarter as provisions. A debt implosion at Saudi conglomerates Saad Group and Ahmad Hamad Algosaibi & Bros (AHAB) has sent shockwaves through the region and forced banks to book massive provisions against their exposure to the firms. Non-oil revenue expected to touch KD 4 million The income generated from non-oil revenue sources is expected to touch KD 4 billion within five years. This is after the total income touched KD 1.1billion during the fiscal year 2008-2009. The diversification of local and foreign investments, as well as flourishing the private sector, compulsory taxation on investment products, and a conducive environment for mega projects are expected to contribute toward this growth. According to an official, the Minister of Finance Mustafa Al-Shamali has executed an executive strategic plan to increase the income generated from non-oil sector and improve citizens' standard of living while maintaining the stability of prices. The official further indicated that the plan would be initiated by supporting the public sector, and integrating it with financial activity. The government has assigned a slew of programs , and has provided the private sector with the necessary land where they can be implemented. In addition, the plan will call for easing bureaucratic procedures for investment to be made in the private sector. This includes developing the legislative controls at the public sector and allowing it to improve and create infrastructural projects, reported Al-Watan. The plan will also support small and medium-scale businesses, in addition to preparing a proper environment to recruit foreign workers. BAHRAIN
247
BPM- Weekly Report # 91 Zone 1-Asia
International Front Bahrain votes to end contacts with Israel Bahrain’s Parliament on Tuesday approved legislation penalising contacts with Israel. “Whoever holds any communication or official talks with Israeli officials or travels to Israel will face a fine ... and/or a jail sentence of three to five years,” member of Parliament Jalal Fairooz from the Shiite Al-Wefaq bloc, an opposition group that was the driving force behind the move. “The motivation is that steps are being taken by certain countries to allow certain talks to be held with Israeli officials. Israeli delegates have managed to participate in events in Arab countries with no treaties with Israel.” Bahrain’s Crown Prince Sheikh Salman bin Hamad bin Isa Al Khalifa wrote in the Washington Post in July that Arabs had not done enough to communicate directly with Israelis. “We believe that establishing contacts with the Zionist enemy is an offense punishable by law,” said Nasser al-Fadhallah, a conservative lawmaker. He said it would be “embarrassing for the government” if the bill — which will be transferred to the upper house sometime in November — is postponed or blocked because it would be obstructing the will of the Bahraini people. Bahraini officials visited Israel in July in an official capacity for the first time to collect five of their nationals Israel was deporting after seizing them on a ship bound for the Palestinian territory of Gaza, blockaded by Israel. Bahrain MPs vote to ban all contact with Israel Parliament in Bahrain, ignoring government objections, passed a bill yesterday to outlaw any contact with Israel. MPs approved jail terms of three to seven years and fines of 10,000 Bahraini dinars ($ 27,000) for offenders. The draft law, seen by AFP, bans “any contact or relations with Israel” and forbids “the establishment of diplomatic or consular representation” between the two countries. The bill still needs clearance by the consultative council. Abdel Aziz al-Fadhel, minister for consultative committee and parliamentary affairs, told MPs during the debate that the bill “constitutes interference by the legislative body in executive matters.” Social Front Education right of every citizen BAHRAIN's commitment to education is a permanent trend that is set at the heart of the country's plans for the future, Crown Prince and Economic Development Board (EDB) chairman Shaikh Salman bin Hamad Al Khalifa said yesterday. The country made education a priority 90 years ago, in 1919, when it introduced the first public education system, followed in 1928 by becoming the first nation in the Arab world to establish a school for girls, he said. Since then Bahrain has seen it a duty and privilege to continue the country's tradition of educational reform, Shaikh Salman said. He was delivering a special address at the first annual Bahrain Education Project, which opened at the Shaikh Isa Cultural Centre, Juffair, yesterday. "Our commitment today is just as passionate, to keep improving the education and training opportunities for all our people, regardless of gender or religion or income," he said.
248
BPM- Weekly Report # 91 Zone 1-Asia
Economic Front Bahrain’s positive growth is praised Bahrain’s two per cent gross domestic product (GDP) growth this year is a sign of good things to come, said a global financial expert yesterday. Standard Chartered Bank Middle East North Africa and Pakistan global markets regional head Marios Maratheftis said the positive growth, though it was low compared with the 7pc in the previous year, was very creditable in view of the other major Gulf economies recording negative growth. Speaking to the media at the Ritz-Carlton Bahrain, Hotel and Spa, the Dubai-based Mr Maratheftis said Bahrain’s GDP will grow by 3pc or more next year and will contribute significantly to the GCC region, which is slowly emerging as a major player in the global economic scenario. “At a time when UAE, Saudi Arabia and Kuwait were reeling, Bahrain stood out,” he said. Finance ministers to probe crisis impact Several Arab finance ministers and central bank governors will debate the impact of the global financial crisis on Arab economies at a Kuwait Financial Forum next month, organisers have said. The two-day forum, starting on November 1, will focus on Arab economies in the post-crisis phase and on the challenges facing Arab banks from the slowdown in economic growth and the liquidity crunch, they said on the event's website. Organised by the Beirut-based Al Iktissad Wal Aamal Group in co-operation with the central bank of Kuwait, the forum will also focus on lessons that should be learned from the large losses sustained by sovereign wealth funds. Finance ministers from Bahrain, Qatar and Mauritania will attend, in addition to central bank governors of the GCC states, Jordan and Lebanon. Arab governments and private investments are estimated to have lost around £2.5 trillion because of the global financial crisis, according to Kuwait's Foreign Minister Shaikh Mohammad Al Sabah. Bahrain and US vow to meet free trade target Industry and Commerce Minister Dr Hassan Fakhro yesterday said Bahrain and the US were 'moving ahead on a road of understanding' and co-operation towards achieving all the objectives of the Free Trade Agreement (FTA) between the two countries. Speaking at the wrap-up session of the second Bahrain-US FTA joint review committee meeting at the Gulf Hotel, he said the meeting had been successful. "We hope in the coming year we will remove all of the current issues off the table and them be able to focus completely on the business of business," Dr Fakhro said. The minister said the discussions were held in a congenial atmosphere and positive spirit that was conducive to obtaining mutual aspirations. "We have all worked hard - be it the US side or my Bahraini colleagues," he said. "It often takes time to pass laws and regulations through the legislative and administrative process but we have made these procedures happen." He said there needs to be continuous dialogue on items on the agenda with the efforts of officials from both sides. "We started our discussions with an overview of what we have achieved so far in terms of the benefits of the FTA and we share the opinion that the effects so far have been very positive according to the numbers and the success stories." He said the private sector needs to be mobilised further to find ways of assisting the small
249
BPM- Weekly Report # 91 Zone 1-Asia
and medium-sized enterprises to benefit from the agreement. Transparency has been an underlying factor in a number of discussions on the environment and labour and both sides have been able to demonstrate their commitment to full transparency on these issues, he added. The minister said government procurement and access of US companies to the Bahrain government procurement were discussed and Bahrain has assured the US side of its commitment to the terms of the FTA in this regard. Kingdom's economic strides praised The business community yesterday rallied to hail His Royal Highness Prince Salman bin Hamad, the Crown Prince and Economic Development Board chairman, for his efforts to speed up progress and spur growth. "Bahrain has achieved an impressive leap forward thanks to HRH Prince Salman bin Hamad's ambitious and forward-looking initiatives," Bahrain Chamber of Commerce and Industry chairman Dr Essam Fakhro said. The private sector, he said, is feeling the dividends of these initiatives, projects and programmes which put Bahrain on a par with advanced nations. He described the Bahrain Vision 2030 as a new and promising start for the national economy as it aspires to achieve more progress and prosperity. He highlighted the HRH Prince Salman bin Hamad's personal follow up of issues and problems of interest and concern to businessmen. The drive to create a proper environment and attract foreign direct investments to Bahrain also won accolades. Energy Front Energy projects top $690 billion Gulf hydrocarbon projects have topped $690 billion, says a report by Dubai-based research house Proleads Global. A full 30 per cent of hydrocarbon projects by value have been put on hold or cancelled, it said. The report shows, however, that the GCC countries remain the most active construction markets in the world for the oil, gas and petrochemical industries with projects budgeted at more than $690bn. Proleads investigated a total of 578 hydrocarbon projects across the GCC countries, and found that 30pc by value have been placed on hold or cancelled with a further 30pc currently in construction and 40pc in the preconstruction phase. Proleads director Emil Rademeyer said GCC countries have been taking a long, hard look at spending in the wake of the global recession, falling demand and the volatility of oil markets with projects rescheduled to take advantage of lower costs or cancelled. "GCC oil, gas and petrochemical sectors' earnings constitute about 85pc of the region's export revenues. "Demand for hydrocarbons and refined product can also be expected to pick up as the global economy gradually pulls out of recession." The Proleads Insight report covers projects in the oil and gas production and refining sectors with values greater than $10 million each in Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE. Energy sector challenges to be analysed The first GCC conference for oil, gas and petrochemical investments will open tomorrow at 8.30am at the Gulf Convention Centre.
250
BPM- Weekly Report # 91 Zone 1-Asia
Oil and Gas Affairs Minister and National Oil and Gas Authority (Noga) chairman Dr Abdulhussain Mirza will patronise the event. The GCC chambers' federation is coordinating the conference with Bahrain Chamber of Commerce and Industry and Noga. Energy experts will address participants on the prospects of oil, gas and petrochemical industries between 2010-14. The challenges facing this vital sector in the Middle East will come under the spotlight. Speakers representing key organisations will outline investment opportunities in the Gulf region. Specialised workshops will also be held on the sidelines of the conference. Oil and Gas Mideast oil and gas ICT summit on way Bahrain will host the third round of the Middle East Oil and Gas ICT Summit next month. The event, on November 3 and 4, will be held under the patronage of Oil and Gas Affairs Minister and National Oil and Gas Authority chairman Dr Abdulhussain Mirza. It is organised by the Dubai-based The World Development Forum. This year the summit is focusing on 'Technology as a strategic pathway during the transition from recession to recovery,' with the participation of delegates representing Bahrain, Saudi Arabia, Kuwait, the UAE, Qatar, Oman, Egypt, Jordan, Libya and Yemen. QATAR Qatari PM meets British parliamentarian HE the Prime Minister and Foreign Minister Sheikh Hamad bin Jassim bin Jabor al-Thani holding talks with William Hague, member of the British House of Commons and minister for foreign affairs of the shadow government in the British Parliament and his accompanying delegation who are currently visiting Qatar. Talks during the meeting dealt with aspects of co-operation and issues of common concern. Separately, HE the Deputy Premier and Minister of Energy and Industry Abdullah bin Hamad al-Attiyah yesterday met William Hague. Talks dealt with boosting co-operation between Qatar and the United Kingdom in the energy and industry sectors as well as other issues of common concern. Qatari PM holds talks with Croatian foreign minister HE the Prime Minister and Foreign Minister Sheikh Hamad bin Jassim bin Jabor alThani, yesterday received Croatian Minister of Foreign Affairs and European Integration Gordan Jandrokovie and his accompanying delegation. Talks dealt with aspects of cooperation between the two countries and means of boosting them. Qatar’s Foreign Ministry and Croatia’s Ministry of Foreign Affairs and European Integration yesterday signed two protocols of co-operation. Qatar Emir, Bangladesh PM hold talks HH the Emir Sheikh Hamad bin Khalifa al-Thani held talks with the visiting Prime Minister of Bangladesh Sheikh Hasina yesterday at the Emiri Diwan. Talks dealt with bilateral co-operation and a set of regional and international issues of common concern.
251
BPM- Weekly Report # 91 Zone 1-Asia
Qatar criticizes Israel Qatar has strongly condemned the storming of the Al Aqsa Mosque by Israeli occupation forces and the use of force and violence against worshippers. An official source at the Foreign Ministry told QNA that the attacks were in violation of international conventions and a breach of international and humanitarian law and an attempt by Israel to drag the region into a spiral of violence to implement its plans to eliminate any chance of achieving peace in the region. The source called on the international community to take immediate measures to protect the Islamic holy sites from these attacks and to achieve security and stability in the region. The source reiterated Qatar’s support to the Palestinian people in their just struggle for their legitimate rights, including the right to self-determination and to establish their independent state on their national soil with Al Quds (Jerusalem) as its capital. Qatar Emir meets king of Saudi Arabia HH the Emir Sheikh Hamad bin Khalifa al-Thani met yesterday the Custodian of The Two Holy Mosques King Abdullah bin Abdulaziz al-Saud at the latter’s farm at Jenadriyah, in Riyadh. Talks dealt with bilateral relations and means of promoting and developing them in all areas, in addition to regional and international issues of common concern. Oil & Gas Qatar enjoys ‘tremendous flexibility’ in gas supplies HE the Deputy Premier Abdullah bin Hamad al-Attiyah has said Qatar has “tremendous flexibility” in supplying LNG to the global markets because of its liquefaction capacity and shipping facilities. Al-Attiyah, who is scheduled to visit China soon, said: “The Chinese market is important to us. We believe energy demand will rise in China consequent on thecountry’s economic development. “We have already tied up with Shell and Petro China to establish a petrochemical venture and a refinery project in China. “Because China is very important to us, we have already opened an office in the country,” al-Attiyah added. He said though the gas price has fallen in the US, the situation is different in many Asian markets. China’s energy demand is rising while US demand falls. China imported a record volume of LNG in September, when it also posted its fastest oil demand growth in over three years. China received its first LNG cargo of about 216,000 tonnes from Qatar last week. The cargo was the first in a 25-year supply agreement between Qatargas and China National Offshore Oil Corporation (CNOOC). China is increasingly competing for access to world energy to power an economy that’s growing at a time when the US continues to be weighed down by the global financial crisis hitting energy demand in North America. RasGas vice-chairman, Dr Ibrahim B Ibrahim, also the economic adviser to HH the Emir, said Qatar would not go to a lowprice market. “No, we will not go to a low-price market – there is a lot of demand for our gas elsewhere. We will go to the US market if prices justify it, but I don’t think we will dump any supplies there,” Ibrahim said. US gas prices have fallen by more than 60% from highs hit last summer, a Dow Jones report said. Although LNG represents only a small portion of the US gas supply – about 2.5% in the third quarter of 2009, a significant
252
BPM- Weekly Report # 91 Zone 1-Asia
uptick in imports to the US from new plants could weigh on prices, it said. Qatar has sold most of its gas on long-term supply contracts, but can redirect them if buyers pay up. Qatar diverts LNG to China from US China has shown keen interest in getting liquefied natural gas (LNG) supplies from Qatar, Deputy Premier and Minister of Energy and Industry H E Abdullah bin Hamad Al Attiyah told a news conference yesterday. Qatar has diverted 5 million tonnes per year of LNG to China which was previously intended for the United States, said Al Attiyah. “China has shown keen interest in getting our LNG and we have the right to divert our gas to a better market. I am a big believer in China market,” he said after the inauguration of RasGas Train 6 here. China received its first LNG cargo of 216,000 tonnes from Qatargas last week. The LNG shipment was the first of the 25 year supply agreement between China and Qatar. He said Qatar would not hesitate to divert its LNG cargoes to other markets if it gets better market conditions and lucrative price rather than dump its gas to the United States. Referring to the fluctuating gas prices and the justification for such massive investment on LNG facilities, Al Attiyah said, “It is true that the prices of gas has been fluctuating in the US and we are therefore diverting our LNG to other markets where the prices of gas are based on the demand and supply dynamics.” He added that Qatar would look to sell gas to China, Poland and elsewhere where it can get better price. OMAN International Front Alawi confers with Carter, receives Croatian FM Yusuf bin Alawi bin Abdallah, Minister Responsible for Foreign Affairs, received here yesterday US former President Jimmy Carter. The meeting reviewed bilateral relations and current regional and international issues of common concern. Carter left the Sultanate later in the day after a two-day visit. The meeting was attended by Mohammed bin Ali al Khusaibi, Head of American Affairs Department at the Foreign Ministry. Alawi also received Gordan Jandrokovic, Croatian Minister of Foreign Affairs and European Integration, who is currently visiting the Sultanate (Picture right). The meeting touched on aspects of co-operation and means of enhancing bilateral relations. The meeting was attended by Sayyid Badr bin Hamad bin Hamoud al Busaidy, Secretary General of the Foreign Ministry, and Salim bin Abdullah Barham, Head of the Eastern Europe Department. Oman, Saudi border officials hold talks Border officials from Oman and Saudi Arabia held a meeting here yesterday in preparation for higher degree border authorities meeting. The Omani side at the meeting was headed by Maj Gen Salim bin Mussalam Qatan, Assistant Inspector General of Police and Customs, while the Saudi side was headed by Maj Gen Zameem bin Juaibir al
253
BPM- Weekly Report # 91 Zone 1-Asia
Sawatt, Director General of Border Guard. The meeting discussed ways of enhancing cooperation between the two countries in the fields of security. Oman, Saudi Arabia sign border document The Sultanate and Saudi Arabia have signed at the Al Bustan Palace Hotel yesterday the minutes of the border authorities’ higher level meeting. The border agreement between the Sultanate and Saudi Arabia includes first and higher level border authorities headed by the interior ministers of both countries. The first level border authority meets every six months, while the higher level border authority meets every one or two years. It was agreed during the meetings of the higher level border authority meeting to speed up the implementation of post/checkpoint of land border linking the two countries. The Saudi Deputy Interior Minister hoped that implementation of the border post will be accomplished soon. Qaboos directs dispatch of aid to Yemen His Majesty Sultan Qaboos bin Said has issued Royal Directives for sending immediate relief to those displaced in the governorate of Sa’dah in the Yemeni Republic, an official source at Oman Charitable Organisation (OCO) said, yesterday. The source added that OCO was ready to send the first batch of assistance while the other relief flights would continue till completion of the mission. The source also said that the relief material included 300 tonnes of medicine supplies; 150 tonnes of food commodities and 100 tonnes of other relief supplies. The assistance would reach the targeted area in the Yemeni republic under the supervision of a team from the Sultanate’s embassy in Yemen and the OCO.
BUSINESS AND POLITICS IN THE MUSLIM WORLD TURKEY Weekly Report on Turkey’s Political, Geo-Strategic, Economic and Social Issues, Period: October 25– 31, 2009. Submitted By: Aasia Khatoon Presentation: November 4, 2009 Report no.91
254
BPM- Weekly Report # 91 Zone 1-Asia
NEWS OUTLINE Political Issues Kurdish Issue Turkish Premier Says Arrival Of More Pkk Members Postponed Government halts return of PKK-affiliated groups to turkey Interior Minister Atalay Says Gvt Puts On Hold Return Of Pkk Members DTP insists on welcoming PKK members in Istanbul Şahin urges gov't to be more careful with PKK returns Kurdish deputy sentenced to jail time for 'terrorist' propaganda Investigation opened over ID card with Kurdish name 5 PKK members killed in clash in Bingöl European Lawmaker Considers Democratic Move an Important Development Turkish Opposition Says Gvt to Reach Nowhere With Cooperation With Terrorists Turkish Parliament Speaker Says 870 PKK Members Applied to Benefit From Other Political Issues Lack of female politicians pulls Turkey down Substantial abuse of religious freedom in Turkey’ Intellectuals call on gov’t to take action against army plot Officer's letter: Plot order came from Gen. Hasan Iğsız Top Army Commander Says Recent Developments Are Unacceptable Military launches inquiry of anti-government plan Civil society kicks off three-day rally against army plot Gov't to settle accounts with plotters at civilian tribunal Turkish Republic enters 86th year amid political tension GEO-STRATEGIC ISSUES Turkey’s PM visit to Pakistan Erdogan Says Pakistan Has a Different Place for Turkey Turkish Premier meets Pakistani counterpart Turkish Relief Organization Opens Disaster Coordination Center in Pakistan Erdoğan pledges solidarity with Pakistan against terrorism Turkey to mediate between Iran and Pakistan Turkey’s blooming Relations with Iran Erdoğan: West treats Iran unfairly Turkish Premier Speaks To Guardian Newspaper: "Iran Is Our Friend" Erdoğan rebukes West over ‘unfair’ pressure on Iran Turkey Determined to Enhance Ties With Iran: Erdogan Turkey, Iraq plan second organized industry zone Turkish Minister Says Turkey, Iran to Sign Energy Deal Iran’s nuke program for humanitarian ends, Erdoğan says Turkey, Iran sign strategic deal to carry gas to Europe New Developments for Turkey in European Union membership dialogue Process British FM writes EU must welcome Turkey’s EU membership Turkey, France enter new era, says EU diplomat EU, Turkey and visa ban with Syria
255
BPM- Weekly Report # 91 Zone 1-Asia
European Lawmaker Expresses Support For Turkey's EU Membership Turkey frets over EU's illegal immigration stance Turkey and Israel Relations Israel reacts to Erdoğan's Guardian words Hundreds protest in Turkey over violence at Jerusalem shrine PM visits Iran, receives praise over nuke row, Israel Relations Between Turkey, Israel Continue To Falter Armenia Issue Turk, Armenian sides watch each other, wait for next move Status quo hinders Turkey's role in Karabakh dispute, says analyst Cyprus Issue Changes to take place in Cyprus Bar construction in mosque garden causes criticism in Cyprus Cyprus Leaders Meet in Settlement Talks Rights court raps Turkey over Cyprus shootings "Cyprus solution fades away for end-2009 Ankara ,Risking a silent veto from Cyprus Other Foreign Issues/News Turkish Prime Minister Meets Pakistani Counterpart Turkish foreign minister to visit Arbil Turkish President in Serbia Gül: Turkey eyes investment in Serbia Erdogan Calls Maliki, Expresses Grief Over Terrorist Attacks Turkey's FM to join D-8 meeting in Malaysia Turkey, Azerbaijan patch up ties after flag controversy "Turkey's role crucial for future of region" Turkey To Open Two More Border Crossings With Iraq, Caglayan "There won't be terrorism between Turkey and Iraq" Erdoğan rejects claims Turkey diverging from West Turkey-Kazakhstan relations hit peak ECONOMIC ISSUES Turkey's central bank lowers inflation forecastTuesday Turkish companies find Russia, Germany most attractive First IPO of crisis era stirs up the bourse Turkish Light Commercial Vehicle Market Grows Turkish Light Commercial Vehicle Market Grows Inflation Figures at Lowest Level in Recent Turkish History Social Issues Turkey starts swine flu vaccination in schools in early Nov. Schools closed in Ankara after first death from H1N1 Turkey starts sending swine flu vaccines to 81 cities Swine flu vaccinations to start in Turkey
256
BPM- Weekly Report # 91 Zone 1-Asia
All Mardin schools closed for week amid swine flu scare Seco1095 Swine Flu Cases Reported in Turkey So Far, Health Ministry nd swine flu death suspected in Manisa Turkey reports one more swine flu death, total number rises to three Turkey's second swine flu death reported in Diyarbakır The food protecting from swine flu
Political Issues Turkish Premier Says Arrival Of More Pkk Members Postponed Sunday, 25 October 2009 12:17 TIME TURK -------------------------------------
257
BPM- Weekly Report # 91 Zone 1-Asia
Turkish PM Erdogan said an expected arrival of a new group of PKK members from Europe had been postponed after popular and political reactions to a welcoming ceremony during the surrender of 34 PKK members last week at the Habur border gate with Iraq. These developments in the arrival of the first group have created a confidence crisis and we have postponed the arrival of the group from Europe for now," Erdogan told reporters aboard his plane enroute to Pakistan. Erdogan said the government had decided to "take a break" in the light of a series of consultations over the issue, adding that a decision would be made on how to continue the process after he returned to Turkey. The group of PKK members from Europe was initially expected for October 28. -----------------------------------------------------------------------------------------------------------Government halts return of PKK-affiliated groups to turkey Monday, 26 October 2009 16:31 Todays Zaman -----------------------------------------The government has decided to halt the return of individuals linked to the Kurdistan Workers' Party (PKK) for a time in order to reassess the democratization process due to agitation among various segments of society. The government has decided to halt the return of individuals linked to the Kurdistan Workers' Party (PKK) for a time in order to reassess the democratization process due to agitation among various segments of society. “We don't have any right to destroy one part while trying to construct the other part,” Prime Minister Recep Tayyip Erdoğan was quoted as saying on Saturday. The PKK declared over the weekend that they will not send additional groups to surrender to authorities. Last Monday eight members of the PKK and 26 people from the Makhmur refugee camp, which is considered by Ankara to be a hotbed for the PKK, turned themselves in to Turkish security forces. After initial interrogations, they were released and received a festive welcome, leading to criticism from many segments of society, including the government and opposition parties. The group turned themselves at the behest of terrorist PKK leader Abdullah Öcalan, who is serving life in prison on İmralı Island in the Sea of Marmara. He urged the return of groups from the Kandil Mountains, where the PKK has a camp, from the Makhmur refugee camp and from Europe. The group from Europe was expected to arrive on Oct. 28, just one day before the anniversary of the proclamation of the Turkish Republic in 1923. “Let's have a break in returns, and we will assess the process later,” Erdoğan told a group of reporters on Saturday while on his way to Pakistan. Erdoğan recalled that they warned the pro-Kurdish Democratic Society Party (DTP) several times not to exploit the situation or turn it into a political show. “If the known party [DTP] tries to gain political benefits from this, we cannot accept that. We are taking steps that were not dared by any other government,” Erdoğan said. DTP officials claim that the celebrations were peaceful and aimed to celebrate peace. Some DTP officials indicated that they were unable to resist the pressure of their supporters. After the government made a decision to halt the arrival of the group from Europe, DTP
258
BPM- Weekly Report # 91 Zone 1-Asia
leader Ahmet Türk said that if their party had not organized the celebrations, order would not have been preserved. “There was a discipline in the welcome, and no one was harmed,” he said. The DTP is planning to hold a press conference today to discuss the situation. Prime Minister Erdoğan underlined that the uniforms worn by the surrendering PKK members were another reason for distress. “We see it as a state project; our counterpart in this process is the nation. It is never possible for us to have talks or negotiations with any illegal persons and organizations. We talk only with legal organizations,” Erdoğan added. The decision of the government to halt the return of the group from Europe came after Öcalan stated via his lawyers that the PKK had done its part and now it was government's turn. He also added that he will not urge further returns and that he tested his power through the returns last week. “While we were making our preparations for returns from Europe, the unwanted image from the first return required us to take a break. My friends will work until I return [from Pakistan]. Then we will assess the situation, and we will continue the process within the framework of the principles we will determine. We will continue to take the steps that have to be taken,” Erdoğan said. Meanwhile a group calling itself the Europe Peace Group Preparation Committee, in a written statement, said they had decided to postpone of the arrival of the group to Turkey indefinitely due to the obstructive attitude of the government. The committee claimed that after the prime minister made his statement, Turkish consulates in Europe refused to grant the necessary permissions for the persons who planned to be in the group. -----------------------------------------------------------------------------------------------------------Interior Minister Atalay Says Gvt Puts On Hold Return Of Pkk Members Tuesday, 27 October 2009 12:43 TIME TURK --------------------------------------------------Turkish Interior Minister Besir Atalay said Monday that the government put on hold the return (surrender) of members of the terrorist organization PKK due to reactions. Attending a live programme on Turkey's state run TRT channel, Atalay said though the surrender of PKK members was an important part of the government's democratization initiative, they put it on hold as the exploitation of the issue created wide public reaction. 34 members of PKK from Makhmour refugee camp and Qandil Mountain --8 of which were dressed in PKK terrorist uniforms-- surrendered to Turkish authorities at Habur border gate on October 19. Huge rallies were held resembling victory celebrations with the participation of thousands of people and DTP officials to welcome the group of PKK members, a scene which created strong reaction in the public, opposition, media and the judiciary. He said they postponed the return of PKK members and would further assess the situation. "Our people have concerns and their concern is very important for us. We will consider them but the democratization initiative continues," said Atalay. Responding to criticism that the "Democratization Initiative" was a foreign project
259
BPM- Weekly Report # 91 Zone 1-Asia
imposed to Turkey, Atalay said Turkey was trying to solve its own problems with self esteem. He rejected allegations that the government was talking to the terrorist organization adding that the government would never take illegal organizations as interlocutor. Commenting on the reaction of families of soldiers killed in the fight against terrorist organization PKK, Atalay said, "martyrs are very important to us. But we are exerting efforts so that we won't suffer any more losses. I urge these families to show understanding. ----------------------------------------------------------------------------------------------------------------DTP insists on welcoming PKK members in Istanbul Tuesday, October 27, 2009 ISTANBUL - Hürriyet Daily News -------------------------------------Istanbul’s branch of the Democratic Society Party, or DTP, has said it is planning to reapply to the Governor’s Office for permission to gather and welcome the outlawed Kurdistan Workers’ Party, or PKK, members who are expected to come from Europe. Çiğdem Uçar, DTP Istanbul branch’s co-president, said in a press conference in Istanbul on Tuesday that they would insist on their request to convene in Kazlıçeşme whenever the PKK members arrive from Europe. Uçar said they did not know the exact date of the arrival so they are expected to apply for an undetermined date. Uçar also said it was clear from the demonstrations in Diyarbakır that people would gather to welcome the PKK members who are expected to arrive soon. AKP takes step back Volkan Akyıldırım, from the Democratic Solution Platform, a platform formed by political parties and movements aiming to contribute to a solution of the Kurdish issue, said the ruling Justice and Development Party, or AKP, took a step back in not allowing the European group to come to Turkey. With its recent approach, the AKP joined the side of pro-war parties such as the Republican and People’s Party, or CHP, and the Nationalist Movement Party, or MHP, Akyıldırım said. Reading the statement in a press conference, Akyıldırım said it is promising that despite all the provocations and brakes on the process, Turkish and Kurdish people have remained calm. “People have not clashed with each other despite all the agitation. They cannot restrain the desire for peace that has been inside of them for so many years,” he said. Akyıldırım also accused the AKP of not considering serious steps to a solution of the Kurdish question. The recent developments reveal that the AKP’s Kurdish initiative has been found empty and does not offer any serious solutions, he said. Akyıldırım also said there is distrust among people in Turkey toward the Kurdish initiative. He said this distrust, however, does not stem from the DTP or the Kurdish people, but from the AKP’s practices. “Although Prime Minister [Recep Tayyip Erdoğan] said he would take any risk to solve the problem, it has been revealed that he could not and instead has taken a step backward.” He also said the DTP and the Kurdish people should not be blamed for the slowing down of the Kurdish initiative. Akyıldırım said despite all the restrictions the Democratic Solution Platform members would work with the returnees from northern Iraq and Europe. ------------------------------------------------------------------------------------------------------------
260
BPM- Weekly Report # 91 Zone 1-Asia
Şahin urges gov't to be more careful with PKK returns Tuesday, October 27, 2009 ANKARA – Hürriyet Daily News -----------------------------------------------Government officials must show more sensitivity regarding the return of the outlawed Kurdistan Workers’ Party, or PKK, members, which caused massive reactions throughout the country, Parliament Speaker Mehmet Ali Şahin has said. “The terror organization and its sympathizers failed to pass the exam,” Şahin said during his meeting with the Association of the Martyrs’ Families on Tuesday. Representatives of the martyrs’ association addressed political parties represented in the Parliament, with the exception of the ruling Justice and Development Party, or AKP, and the pro-Kurdish Democratic Society Party, or DTP. The association is the most vocal group against the government-led initiative to solve the Kurdish question. Reactions grew stronger following last week’s return of 34 PKK members, who were welcomed by a large reception, with tens of thousands participating. Association representatives expressed discomfort with scenes staged last week at the Habur border gate. “This group is not the first that has surrendered. But none of them caused such a disturbing reception. This reception has upset us,” Şahin said, adding that the event should be preserved in the minds of the representatives so that it can be compared with future implementations. “It’s an experiment,” he said. “Let’s see what they will do.” Şahin indirectly called on the DTP to be more responsible in preventing a repeat occurrence of such a reception, saying, “Those who feel responsible should put more effort into showing sensitivity afterward.” ----------------------------------------------------------------------------------------------------------Kurdish deputy sentenced to jail time for 'terrorist' propaganda Tuesday, October 27, 2009 DİYARBAKIR – Agence France-Presse ------------------------------------------------A Kurdish member of Turkey's Parliament was sentenced to 18 months in jail Tuesday for "terrorist" propaganda, according to court records seen by AFP. The judge ruled that Aysel Tuğluk "spread the propaganda of a terrorist organization" in remarks favoring the outlawed Kurdistan Workers' Party, or PKK, which has led a bloody 25-year rebellion against Ankara and is listed as a terrorist group, the document said. A lawyer for Tuğluk, who belongs to the Democratic Society Party, or DTP, said they would appeal the sentence, handed down by a court in Diyarbakır, the largest city of the Kurdish-majority Southeast. In a speech made at a rally in Diyarbakır in 2006 before she was elected a member of Parliament, Tuğluk praised a declaration signed by tens of thousands of Kurds upholding jailed PKK head Abdullah Öcalan as their leader. She also said PKK demands should be taken into account in efforts to end the Kurdish conflict. The court sent the ruling to Parliament, which, under Turkish law, has to lift a deputy's judicial immunity before any prison term can take effect.
261
BPM- Weekly Report # 91 Zone 1-Asia
The DTP, Turkey's main Kurdish party, is routinely accused of supporting the PKK and even serving as its legal political arm. The DTP itself is currently on trial at the Constitutional Court for links with the PKK and faces the risk of being banned. The PKK took up arms against Ankara in 1984, sparking a conflict that has claimed about 45,000 lives. The government is currently working on fresh reforms to expand Kurdish freedoms but insists on rejecting dialog with the PKK, saying the terrorist group should either surrender or face military action. -----------------------------------------------------------------------------------------------------------Investigation opened over ID card with Kurdish name Tuesday, October 27, 2009 ISTANBUL – Daily news with wires --------------------------------------------------------The Interior Ministry has initiated an investigation against a population-registry official in Ankara who gave a baby an ID card with a Kurdish name, news agencies reported Tuesday. Upon the request of the baby’s father, Kenan Kırkaya, the official registered the baby’s name as Hêvî Jiyan. The letters “ê” and “î” do not exist in the Turkish alphabet. Anonymous officials speaking to the private news Web site NTVMSNBC said that the letters “â,” “î” and “û” have been used before, but not the letter “ê.” The ministry officials said the infant’s ID card might be cancelled if any mistake by the official were to be determined. In Kurdish, Hêvî means “hope” and Jiyan means “life.” Kırkaya said when he received his daughter’s ID card, he was so happy that she did not meet the same fate as her mother. Though Kırkaya’s wife is named “Newroz,” population-registry officials wrote her name without using a “w.” If there had been any problem with the name he wanted for his child, Kırkaya said earlier, he was thinking of leaving the name section on the ID card empty. -------------------------------------------------------------------------------------------------------------------------------5 PKK members killed in clash in Bingöl Tuesday, October 27, 2009 ISTANBUL – Daily News with wires -----------------------------------------------------Five Kurdistan Workers’ Party, or PKK, members were killed when they clashed with military forces in the eastern province of Bingöl. According to the Anatolia news agency, the members of the military were patrolling the area late Monday when they encountered a group of PKK members. They called upon the PKK members to “surrender,” and in response the group opened gunfire. The incident also left one member of the security forces wounded; the soldier was airlifted to a military hospital in Elazığ. Two villagers taking care of their beehives were also wounded, reported Agence Presse-France. ---------------------------------------------------------------------------------------------------------
262
BPM- Weekly Report # 91 Zone 1-Asia
European Lawmaker Considers Democratic Move an Important Development Tuesday, 27 October 2009 USAD PUBLICATIONS ---------------------------------------A European lawmaker said on Tuesday that the democratic move of the Turkish government was an important development for every citizen of Turkey. Turkey-EU Joint Parliamentary Commission's Co-chairpersons Lutfu Elvan and Helene Flautre held a press conference in Turkish capital of Ankara. Elvan said that the commission members focused how they could contribute to TurkishEU relations in its 62nd meeting. "Turkey will accord with EU basic principles with the democratic move. We will continue to work on this matter," Elvan said. Co-chairwoman Flautre said they were moving toward a dream of EU embracing Turkey and Turkey's full EU membership was the main goal. In regard to the democratic move, she said there would be important developments in human rights with this initiative and everyone should support it. Flautre said the progress report of the European Commission could be more positive. -----------------------------------------------------------------------------------------------------------Turkish Opposition Says Gvt to Reach Nowhere With Cooperation With Terrorists Tuesday, 27 October 2009 USAD PUBLICATION ----------------------------------------Turkey's main opposition party leader said on Tuesday that the government could reach nowhere by cooperating with terrorists. Deniz Baykal, the chairman of the Republican People's Party (CHP), said that the government could reach nowhere by cooperating with violent and terror centers. "You have to take into consideration the demands of citizens of Kurdish origin in that region," Baykal told parliament gathering of his party. Baykal argued that the terrorist organization PKK, the Democratic Society Party (DTP), and head terrorist Abdullah Ocalan were in a political unity and the government was cooperating with those three. "The recent incidents occurred as a result of this," he said. Baykal said that the nation had seen that the move was wrong and reacted to it. Then, the government had "suspended" the initiative, Baykal said and asked if the government was suspending the initiative to make the nation digest it or if it was planning to go on with the initiative after some time passed. Also, Baykal said the aim of terrorism was to cause ethnic division in Turkey and then to create a different state structure. However, Turkey was in an effort to intermingle citizens of different origin as a nation since the day it was established, Baykal said. Baykal also said that some circles inside and outside Turkey had made some plans to harm this integrity. The CHP chairman said citizens of Kurdish origin were not after separation and supporting terrorism. "They are not the militants or fanatics of the PKK, but they want to live as equal citizens of this nation and state," he said.
263
BPM- Weekly Report # 91 Zone 1-Asia
Baykal said that it was the biggest mistake to leave those citizens aside, turn eyes on the terrorist organization, try to compromise with the organization, cooperate with the organization, and try to solve problems that way. "Because their (terrorists') problem is separation, but the problem of our citizens of Kurdish origin is not separation," he said. Baykal said the citizens of Kurdish origin had legitimate complaints and demands and they wanted solution. "If an initiative is to be taken, this cannot be made by turning your eyes on the PKK, Ocalan and DTP, as the government did," he said. Baykal said that it could be done by turning eyes on the citizens of Kurdish origin and taking into consideration their demands. The opposition leader said that it would be a great disrespect and obstinacy with the nation to say that "the initiative would continue" in the current atmosphere. Baykal also said that some circles outside the country were trying to back efforts to cause ethnic separation in Turkey and use terrorist organizations. The CHP leader said every one had to show the foreign world that the region would be a more peaceful and secure place if it stopped playing with and using the PKK, and backing it directly or indirectly. Baykal also called on the government to say the foreign world that it would not be right to take steps aiming at separating Turkey. CHP leader Baykal also said that nobody should try to hamper Turkey's nationalization process. On October 19, 34 PKK members, coming from the north of Iraq, surrendered to Turkish gendarmerie forces at the Habur border crossing between Turkey and Iraq. Security forces released all the surrendered PKK members. Turkey was expecting some more members of the terrorist organization from Europe to arrive in Istanbul on October 28. However, their arrival was postponed after popular and political reactions to a welcoming ceremony during the surrender of 34 PKK members last week. --------------------------------------------------------------------------------------------------------Turkish Parliament Speaker Says 870 PKK Members Applied to Benefit From Repentance Law Tuesday, 27 October 2009 USAD PUBLICATION ----------------------------------The Turkish parliament speaker said on Tuesday that 870 members of terrorist organization have applied to benefit from the repentance law in the last four years. Parliament Speaker Mehmet Ali Sahin said that the 34 members of terrorist organization PKK (from Makhmour refugee camp and Qandil Mountain) were not the first ones who applied for this law. "None of them (who applied earlier) caused such an ugly picture," Sahin said. He said 870 PKK members have applied to benefit from the repentance law between June 1, 2005 and June 15, 2009. Sahin said, "636 of them did not get any penalty. Sentences of 30 were reduced. Demands of 124 were rejected and investigations have been under way for 78 PKK members." On October 19, 34 members of PKK from Makhmour refugee camp and Qandil
264
BPM- Weekly Report # 91 Zone 1-Asia
Mountain --8 of which were dressed in PKK terrorist uniforms-- surrendered to Turkish authorities at Habur border gate. Huge rallies were held with the participation of thousands of people and DTP officials to welcome the group of PKK members, a scene which created strong reaction in the public, opposition, media and the judiciary. -------------------------------------------------------------------------------------------------------------------------------Lack of female politicians pulls Turkey down Tuesday, October 27, 2009Ceylan Yeğinsu ISTANBUL - Hürriyet Daily News ---------------------------------------------------Good scores in education, literacy and enrollment are not enough to offset the burden of too few Turkish women in politics as Turkey slips again in a global index on gender equality. Doubling the number of women ministers is not enough. One women’s leader says relevant groups need to work together to ensure that decisions are made on an equal gender basis The lack of political representation for Turkish women is the heaviest factor dragging on Turkey’s quest for gender equality, according to a global index that puts the country in 129th place out of 134. The World Economic Forum’s Global Gender Gap Index 2009 comes as a disappointment, with Turkey falling two places compared to last year’s ranking. For a country whose NGOs, women’s groups and government are constantly launching initiatives in an attempt to close the gap, the poor ranking shows that Turkey lags desperately behind due to its lack of political empowerment and participation of women in Parliament. Hülya Gülbahar, the chairwoman of the Association for Educating and Supporting Women Candidates, or Ka-Der, told the Hürriyet Daily News & Economic Review that she was not at all surprised by the results of the index. “Women in Turkey have become accustomed to these outcomes. We pick up the list and automatically look to find Turkey at the bottom,” she said. Turkey deserves its poor ranking due to its low scores on political empowerment, Güler Sel, the chairwoman of the Haceteppe University Population Investigation Institution, told the Daily News. “There are developments in education, as the report shows, which should lead to more women seeking positions of authority in Parliament, but sadly, this is not the case,” she said. Justice and Development Party, or AKP, deputy Özlem Türköne acknowledged that the gaps in gender equality in politics and Parliament are extremely high on a global scale, but noted that since 2007, the AKP has more than doubled the percentage of women in ministerial positions in Parliament, from 4 percent to 10 percent. “I appreciate that the figures on the index appear alarming, but we must not forget that progress is being made,” Türköne told the Daily News. “As a female deputy representing the AKP, I have witnessed the work that is being done to address and improve upon this issue and I believe that Turkey’s position on such indexes will improve in the future.” The World Economic Forum’s index looks at the gaps in gender equality, measuring the ways in which countries are distributing resources between women and men regardless of the overall level of resources in the country. The four sub-indexes used are Economic
265
BPM- Weekly Report # 91 Zone 1-Asia
Participation and Opportunity, Educational Attainment, Health and Survival, and Political Empowerment. On a scale where 0 means inequality and 1.00 signifies equality, women in Turkey are positioned at 0.35 in labor-force participation, 0.10 in Parliament positions held and at just 0.04 for the number of women in ministerial positions. Gülbahar, who also works as a lawyer in Turkey, emphasized that unless laws are made to ensure women are given roles of equal responsibility in politics, such figures will never change. “While other Muslim countries such as Iran share gender-equality issues with Turkey, they are ranked higher on the index because there are a significant number of women who participate actively in politics and in the government,” she said. Noting that education gaps have closed, with literary rates scoring 0.84, enrollment rates for primary schools 0.97 and enrollment in secondary and tertiary education coming at 0.86 and 0.76, respectively, Gülbahar said, “We now need to focus on gender equality education for the whole of society including the president and the prime minister.” While Turkey sits at one of the lowest positions, the rankings of the Nordic countries demonstrate positive progress in closing gender gaps on a global scale. Iceland has claimed the top spot from Norway, which slipped to third behind Finland. Sweden, in fourth place, completed the Nordic countries’ continued dominance of the top spots. Speaking to the Daily News, Yeşim Müftüler Seviğ, the secretary-general of the Women Entrepreneurs Association of Turkey, or KAGİDER, suggested some areas that need to be addressed to make a difference in Turkey’s positioning on the index. According to Seviğ and KAGİDER, steps taken to address these issues need to be made in an integrated manner and all relevant groups need to work to empower women in society, economics and politics to ensure that decisions are made on an equal gender basis. Moreover, KAGİDER believes that a budget needs to be assigned for projects and activities that aim to close gender gaps. “The first and foremost factor is for women to be put in decision-making positions in Parliament. I cannot stress this enough,” Seviğ told the Daily News. “More and more women are being educated each day, but very few are being placed in high-ranking positions, professionally or politically.” Until this is achieved Turkey will continue to be disappointed and embarrassed by its position on the gender-gap index, she said. ----------------------------------------------------------------------------------------------------------Substantial abuse of religious freedom in Turkey’ Tuesday, October 27, 2009 ISTANBUL – Hürriyet Daily News ----------------------------------------------------Although the Turkish Constitution provides for freedom of religion, constitutional provisions regarding the integrity and existence of the secular state restrict these rights and non-Muslims face societal suspicion and mistrust, according to the U.S. State Department’s Annual Report on International Religious Freedom. “Authorities continued their broad ban on wearing Islamic religious headscarves in government offices as well as public schools. The government also continued to oppose ‘Islamic extremism,’” the report read. Furthermore, it stated, “Religious minorities said they were effectively blocked from careers in state institutions because of their faith. Minority religious groups also faced 266
BPM- Weekly Report # 91 Zone 1-Asia
difficulties in worshipping, registering with the government, and training their followers. Although religious speech and persuasion is legal, some Muslims, Christians and Baha'is faced some restrictions and occasional harassment for alleged proselytizing.” There were reports of societal abuse and discrimination based on religious affiliation, belief or practice, according to the annual report. “Threats against non-Muslims created an atmosphere of pressure and diminished freedom for some non-Muslim communities. Many Christians, Baha'is and heterodox Muslims faced societal suspicion and mistrust, and some elements of society continued to express anti-Semitic sentiments. Additionally, persons wishing to convert from Islam sometimes experienced social harassment and violence from relatives and neighbors.” The Department of State submits the report to the U.S. Congress annually. The report recorded the status of respect for religious freedom in all countries during the period from July 1, 2008 to June 30, 2009. The report primarily focuses on the actions of governments, including those that contribute to religious repression or tolerate violence against religious minorities, as well as those that protect and promote religious freedom. The report is part of an overall effort to promote human rights. During the reporting period, embassy and consulate representatives met frequently with government officials and representatives of religious groups to discuss matters related to religious freedom, including legal reforms aimed at lifting restrictions on religious minorities. Intellectuals call on gov’t to take action against army plot Monday, 26 October 2009 11:23 Todays Zaman ---------------------------------------------------A large number of intellectuals, journalists and jurists have raised their voices once again against military intervention in politics after the discovery of the original copy of an alleged army plot to undermine the ruling party and the faith-based Gülen “If the authenticity of the plot is recognized, then everyone who has stood by Col. Dursun Çiçek [who allegedly prepared the plot] will share the responsibility. Çiçek is working at the General Staff headquarters. The plot is a vicious one. If the plot proves to be authentic, then the General Staff will be accused of sharing Çiçek's responsibility. The staff will have to pay a cost at the highest level,” noted Ahmet Taşgetiren, a columnist for the Bugün daily. Taşgetiren was referring to the recent discovery of the original Action Plan to Fight Reactionaryism, a photocopy of which emerged in June. The original was allegedly mailed to an İstanbul prosecutor by an unnamed military officer on Friday. The discovery of the original document is the strongest evidence yet in the case against Col. Çiçek, whose signature is allegedly on the document. According to the document, the Turkish Armed Forces (TSK) had a systematic plan to damage the image of the Justice and Development Party (AK Party) 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 Ergenekon inquest. The TSK, however, denied possession of the plot and said it was a “piece of paper” aimed at undermining the credibility of the armed forces. On Saturday, Prime Minister Recep Tayyip Erdoğan spoke against powers that may be working to damage his government and said his government would closely follow the
267
BPM- Weekly Report # 91 Zone 1-Asia
legal proceedings against the plot until they are concluded. “We will never allow anyone to put a stain on our state and republic with such incidents. The legal process is ongoing. The TSK cannot accept such a shadow or stain on itself. We hope that the legal process will be completed soon,” he said. The İstanbul Council of Forensic Medicine (ATK) evaluated the document on Saturday and concluded that the signature allegedly belonging to Col. Çiçek on the plot is genuine. The ATK announcement disproves claims against the authenticity of the plot. A report prepared by the Gendarmerie General Command’s Criminal Investigation Department stated in June that the signature on the plan resembled that of Çiçek. The TSK issued a three-article statement on the discovery of the original document, which focused solely on criticism of newspapers for their reports on the discovery. “The appearance of developments related to the alleged plot in some newspapers is worrisome and thought provoking in the name of a state governed by the rule of law. The difference in the language used in the reports of different media groups grabs attention. No one can have a say against the conduct of everything in accordance with the law in a state governed by the rule of law,” read the statement. Durmuş Türeman, a retired colonel, said the ATK’s findings regarding the controversial document have come as verification of a crime. “Chief of General Staff Gen. İlker Başbuğ had called the document ‘a piece of paper.’ If the plot is really original, then it means Başbuğ and other high-ranking army members committed a crime. Başbuğ should take legal action against members of the military who misled him. He will either continue to call the document a piece of paper or say good bye to his post,” Türeman said. Türeman’s remarks were an open call to the chief of the general staff to resign from his position. Sezgin Tanrıkulu, a former chairman of the Diyarbakır Bar Association, called on Gen. Başbuğ to make a satisfactory explanation regarding the alleged plot in order to dismiss all doubts. “The military should stop interfering in politics and manipulating society. It was surprising that Başbuğ called it a piece of paper and did not remove Col. Çiçek from his position. The chief of general staff should stop protecting the culprit,” he said. According to writer Sanar Yurdatapan, the General Staff should focus on its duty, which is to protect the country against external threats. He also called on the General Staff to reopen an investigation into the plot. Çiçek to testify to Ergenekon prosecutors again There is growing expectation that the colonel will be interrogated by prosecutors conducting the probe into Ergenekon, a clandestine gang that allegedly attempted to overthrow the government. There are claims that the Istanbul 13th High Criminal Court, which is hearing the Ergenekon trial, will invite Çiçek to testify this week. Çiçek was arrested by a civilian court in July on suspicion of being linked to the plot, but was later released after his lawyer submitted an appeal. His immediate release created controversy. He also testified to Ergenekon prosecutors at that time. An expected investigation into the plot will have a wide scope, including new names to be interrogated for suspected links to the plan, Turkish newspapers wrote yesterday. According to reports, a note forwarded to an İstanbul prosecutor by an unnamed military officer together with the original copy of the plot included several other names who
268
BPM- Weekly Report # 91 Zone 1-Asia
contributed to the preparation of the document. Newspapers claimed that Ergenekon prosecutors will also launch an investigation into those names. After the ATK released its report on the authenticity of the suspected military plot to undermine the ruling AK Party and the Gülen movement, several politicians called for a new investigation into the plan. “When Gen. Başbuğ called the plot a ‘piece of paper,’ he said a new investigation could be launched into it when new evidence indicating its authenticity was discovered. We are a state governed by the rule of law. If the existence of a genuine signature on the document is really certain, then a new investigation should be opened. The chief of general staff should do what his remarks require,” noted Bekir Bozdağ, deputy chairman of the AK Party parliamentary group. Haluk Özdalga, an AK Party Ankara deputy, said a military probe into the alleged plot did not produce sound findings and called for an investigation into figures who helped Col. Çiçek prepare the plan. “It is very clear that the plan was not prepared solely by Çiçek. There must be other accomplices. An administrative and legal probe should reveal who is behind the plot,” Özdalga remarked. He also said Çiçek should be tried by a high criminal court. ATK examination eliminates doubts on authenticity of plot A report prepared by three experts at the İstanbul Council of Forensic Medicine (ATK) showed on Saturday that a signature appearing on the original copy of the alleged military plot against the Justice and Development Party (AK Party) and the Gülen movement belongs to Col. Dursun Çiçek. The ATK report has come as verification of previous reports from the Gendarmerie General Command’s Criminal Investigation Department and the Scientific and Technological Research Council of Turkey (TÜBİTAK). Evaluating a photocopy of the plot revealed earlier, the two institutions had said the signature on the document matched the colonel’s. According to Mete Göktürk, a former chief prosecutor of the now-dissolved State Security Court (DGM), the ATK report has cleared all doubts on the authenticity of the alleged plot. “This is scientific evidence. Legal action is necessary. Col. Çiçek may be arrested. The photocopy version of the plot raised suspicions. But the original document leaves no place for doubts. This is evidence like a DNA test,” he said. Reşat Petek, a former chief public prosecutor, said those behind the vicious plot should be sentenced to life in prison. “This was a plot aimed at overthrowing the government. The Military Prosecutor’s Office may launch a new investigation. On one hand, there is a group that prepared the plan. On the other, there is a group that had started to implement the plan. These two groups share the guilt. They should be tried and sentenced to life imprisonment,” he remarked. Army plot Col. Çiçek says he is victim of conspiracy In the face of the discovery of the original copy of the suspected military plot and an İstanbul Council of Forensic Medicine (ATK) report indicating that the signature under the document belongs to Col. Dursun Çiçek, the colonel said he was victim of a conspiracy theory. Speaking to the Habertürk daily, Çiçek said on Saturday a smear campaign was ongoing against him. “The legal process is going on. They are continuing to slander me and
269
BPM- Weekly Report # 91 Zone 1-Asia
prepare conspiracy theories against me. I am pursuing it with all with attention,” he noted. The colonel expressed confidence in legal bodies to reveal the truth behind the alleged plot. “It would not be right for me to make further comments on the issue at the moment. The truth will be revealed,” he added. Çiçek’s lawyer, Mustafa Çevik, also made a statement on the discovery of the original copy and said his client was ready to testify again on the discovery any time. “We have not received any court notice yet. If we do, my client will go testify,” he remarked. An authenticity test by the ATK showed on Saturday that the signature allegedly belonging to Col. Çiçek on the plot is genuine. The ATK announcement dissipated all claims against the authenticity of the plot. When the plot was first discovered, its authenticity was highly disputed as the document was a photocopy. But a report prepared by the Gendarmerie General Command’s Criminal Investigation Department stated in June that the signature on the plan resembled that of Çiçek. Officer's letter: Plot order came from Gen. Hasan Iğsız The unnamed officer's letter stands as key in clarifying the mystery surrounding the plot controversy. According to the letter, -----------------------------------------------------------------------------------------------------------Officer's letter: Plot order came from Gen. Hasan Iğsız Tuesday, 27 October 2009 13:28 Todays Zaman -------------------------------------------------The unnamed officer's letter stands as key in clarifying the mystery surrounding the plot controversy. According to the letter, the order for the preparation of such an action plan came from First Army Corps Commander Gen. Hasan Iğsız. Iğsız was serving as the deputy chief of general staff at the time. “In accordance with a directive by [then-Deputy Chief of General Staff] Gen. Hasan Iğsız, necessary work was initiated by Lt. Gen. Mehmet Eröz and Maj. Gen. Mustafa Bakıcı, and the action plan was prepared by Col. Dursun Çiçek,” reads the letter. The letter also claims that the leak of the plot to the press created panic within the Turkish Armed Forces (TSK). “When the action plan was first published in a Turkish daily, Taraf, Maj. Hicri Dinçerol inquired of Col. Çiçek how it was leaked to the press. Then all computers were cleared [of all documents,] and all documents were destroyed. … The General Staff was informed about the leak to the press at around 4:30 a.m. Maj. Gen. M. Mutlu Arıkan asked Col. Çiçek about the leak. When the colonel said it was not him who had prepared the action plan, Arıkan said: ‘I can show you hundreds of such documents. Tell me how it was leaked!’ No court decision was taken at that time. Nor was anyone detained or interrogated. No serious effort was exerted to prove the existence of the action plan,” asserts the letter. According to the officer, the colonel involved was not subjected to any serious interrogation. “Col. Çiçek’s house was raided five days after the action plan found its way into the media, but only for show. Capt. İ. Volkan Şahin, a military judge, spent five or six hours in the house but did not conduct a search. When the captain returned to the Information Support Unit, he said, ‘This is the way we protect our staff.’ Similarly, 40 bags of documents were destroyed in a paper shredder and then burned. All staff participating in the operation were warned [not to leak any information about the
270
BPM- Weekly Report # 91 Zone 1-Asia
destruction of documents,]” continues the letter. The officer also claims that a group of experts was formed within the TSK to prove that the action plan was not prepared at General Staff headquarters. The experts worked to prove that the plan does not conform to the writing styles of the staff. “Shortly afterwards, an order was forwarded to members of the army [by Gen. Hasan Iğsız] on the security of correspondence. In accordance with this order, no names or titles would be put on correspondence via e-mail; no document would bear a genuine signature or an electronic signature if it is to be sent via e-mail; the number of computers [open to use] in the General Staff headquarters would be reduced,” the letter goes on to say. The officer said what made him write the letter was the efforts of the TSK to refute the existence of such an army plot. “What is discreditable about this issue is a press conference called by our chief of General Staff, who called the plot ‘a piece of paper’ in a very humiliating manner instead of giving proper responses to the questions in people’s minds,” noted the officer. The officer also said he was ready to testify as a witness in the investigation of the plot. ----------------------------------------------------------------------------------------------------------Top Army Commander Says Recent Developments Are Unacceptable Monday, 26 October 2009 USAD PUBLICATION ------------------------------------------Turkish General Staff Chief Gen. Ilker Basbug said Sunday, "no one can accept what happened in Turkey lately. I share the feelings of our veterans and relatives of martyrs." Gen. Basbug told reporters about recent developments following return of some members of the PKK terrorist organization, "it is impossible to accept last week's developments. I do share the feelings of our veterans and relatives of martyrs. No one should forget the fact that if those people had not sacrificed their lives and those veterans had not been injured, where would Turkey have been in its fight against terrorism? If we forget this fact, it will be a big disrespect against our martyrs and veterans." "In 1990s, the terrorist organization attempted to take a certain part of Turkey under its control and establish an independent state. Today, the PKK understood that it cannot reach such targets. They do not talk about independence any more," he said. "The fight against terrorism is difficult. Our troops carry out this fight 24 hours a day and 365 days a year. They are not robots, they are humans. In 1990s, we did not have today's technological capabilities. We owe our current situation to our martyrs. More than 5 thousand troops were martyred in the fight against terrorism," Gen. Basbug added. Monday, 26 October 2009 -----------------------------------------------------------------------------------------------------------Military launches inquiry of anti-government plan Tuesday, October 27, 2009 ANKARA - Hürriyet Daily News ----------------------------------------------------In a written statement, the General Staff announces it has launched an inquiry into recent reports about an original copy of alleged anti-government military plans. The Istanbul
271
BPM- Weekly Report # 91 Zone 1-Asia
Chief Prosecutor’s Office, meanwhile, has asked for depositions from the six army officers mentioned in a letter sent by an anonymous army officer The military prosecutor’s office launched a new investigation on Monday after reports were leaked to the media that an anonymous officer sent an original copy of the alleged military plans to topple the government to the Istanbul Chief Prosecutor’s Office. Also revealed was another document attached to the alleged plan. It contains information about the social landscape of the country after the landmark election victory of the ruling Justice and Development Party, or AKP, in July 2007 and gives guidance for military procedure. Earlier in June, daily Taraf published a suspected military document that outlined an alleged plan to topple the AKP along with a religious movement led by Fethullah Gülen. It bore the signature of Col. Dursun Çiçek. Both the military and civilian investigations, however, resulted in nothing due to the absence of the original document. In a written statement posted on the General Staff’s Web site on Monday, the General Staff said new reports about the alleged plan have take ment was destroyed. The anonymous officer said he sent the letter and original document to the prosecutor because the military has lost its credit in recent years. The officer also said he is ready to testify if he is invited by the prosecutor. PM defends deposition Prime Minister Recep Tayyip Erdoğan, meanwhile, told reporters Monday aboard a plane to Iran that, if the anonymous officer who allegedly sent the original copy of the antigovernment military plan to the Istanbul Prosecutor’s Office makes a deposition, the truth will be revealed. Erdoğan said it was unacceptable for the military to remain under suspicion and that he would also discuss the issue with Başbuğ in their weekly meeting after he returns home. Another document Daily Radikal on Tuesday also published the full text of another document that was attached to the alleged letter and contained information regarding the developments and social landscape of the country after the landmark election victory of the AKP in the July 2007 general elections. The document, drafted by Lt. Gen. Nusret Taşdeler, describes the elections as a turning point in efforts to transform the country into a moderate Islamic country. The document also says the elections were likely to start a religion-oriented new era during which the AKP and its supporters may act more boldly because of its success in the general election and the basic principles of the Republic could be harmed. TSK should identify and apply new policies in the new period, it says. The document says Abdullah Gül was elected president in spite of the suggestions made to Erdoğan and that the public and the media appeared to have adopted the headscarf [headscarf-wearing wife of Gül.] The TSK has no an admissible reason and support to oppose a president who was elected in line with the rules of democracy, the document says. The document also says the number of the institutions, nongovernmental organizations, universities and labor unions that would support the TSK was declining but the TSK should seek opportunities to cooperate with those institutions that support them on sensitive issues including secularism.
272
BPM- Weekly Report # 91 Zone 1-Asia
--------------------------------------------------------------------------------------------------------Civil society kicks off three-day rally against army plot Friday, 30 October 2009 19:15 Todays Zaman -----------------------------------------------------Turkey's prominent civil society organizations have stood up to advocate democracy and the rule of law in Turkey against a military plot aimed at undermining the ruling party and a civilian group. The organizations have kicked off a series of rallies in Ankara and İstanbul, which will last three days. The first gathering point for the rally was the Turkish capital on Friday. A large group of supporters from the Association of Human Rights and Solidarity for Oppressed Peoples (MAZLUM-DER), the Civil Servants' Trade Union (Memur-Sen), the Confederation of Turkish Real Trade Unions (Hak-İş), the Service Sector Workers' Union (Hizmet-İş), the Human Rights Association (İHD) and the Turkish Human Rights Foundation (TİHV) participated in yesterday's rally. The rally was aimed at voicing opposition to the coup attempts in the country. The rally came shortly after the discovery of an original copy of a military plot detailing plans to undermine the power of the governing Justice and Development Party (AK Party) and the faith-based Gülen movement. The main theme of the rally was “No to Military Coups!” Another rally is planned to take place in İstanbul's Taksim Square at 1 p.m. tomorrow. The rally will be attended by a large group of supporters from the Freedom Association (Özgür-Der), the Akabe Foundation and the Civilization Foundation with the slogan “No to junta; try coup plotters!” Saturday's rally will be followed by another on Sunday, which will be held on İstanbul's İstiklal Street at 7 p.m. Among the participants of the rally will be Young Civilians, the Revolutionary Socialist Workers' Party (DSİP), the Democratic Society Party (DTP), the Freedom Movement and MAZLUM-DER. ---------------------------------------------------------------------------------------------------------Gov't to settle accounts with plotters at civilian tribunal Friday, 30 October 2009 13:13 Todays Zaman ------------------------------------------------First Army Corps Commander Gen. Hasan Iğsız ignored questions from reporters over a military plot yesterday during a ceremony in İstanbul marking the 86th anniversary of the Turkish Republic. There are claims that Prime Minister Recep Tayyip Erdoğan will not ask Chief of General Staff Gen. İlker Başbuğ to resign or remove him from office due to a crisis that was sparked over the discovery of the original version of a military plot aimed at undermining his Justice and Development Party (AK Party), but that he will instead facilitate the trial of the people behind the plot by a civilian court rather than a military tribunal. According to some government officials who wanted to remain anonymous, Erdoğan held a meeting behind closed doors over the plot controversy and concluded that the resignation of Gen. Başbuğ would not resolve the problems. The prime minister will, instead, ask that the members of the military who are accused of having contributed to the
273
BPM- Weekly Report # 91 Zone 1-Asia
preparation of the plot be tried in a civilian court. Earlier this week Erdoğan said he would hold a meeting with the military chief over the plot. “I do not want to talk to Gen. Başbuğ through the media. I have weekly meetings [with the military chief]. When I return to Turkey, we will definitely meet. This is an important issue. We will evaluate the process,” Erdoğan noted. His remarks came during a flight from Islamabad to Tehran. The prime minister returned to Turkey late on Wednesday and held a meeting with his deputy prime ministers and AK Party deputy chairmen. A weekly meeting is held between Erdoğan and Başbuğ every Thursday, but yesterday's meeting was postponed due to the celebrations for the 86th anniversary of Turkish Republic. The two are expected to meet at a later date to discuss the military plot. According to the plot, the Turkish Armed Forces (TSK) had a systematic plan to destroy the image of the AK Party government and the faith-based 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 criminal organization accused of plotting to overthrow the government. A photocopied version of the plot was first published by a Turkish daily in June, but the General Staff denied responsibility for it, saying it was just a “piece of paper.” An unnamed military officer, however, recently sent the original copy of the document to a civilian prosecutor, which put an end to all debates over the plot's authenticity. According to a high-level government official, the prime minister decided that it would not be right at the moment to call on Gen. Başbuğ to resign. The official said the plot not only targeted the governing AK Party but was also aimed at wearing down the military chief. “It has been discovered that the plot started to be planned when former Chief of General Staff Gen. Yaşar Büyükanıt was in office. Başbuğ may have been informed about the plot but may also have been deceived about it. Therefore, the issue will become clear after a meeting between the prime minister and Gen. Başbuğ. It would not be proper to expect the general’s resignation at the moment,” remarked the government official. Egemen Bağış, state minister and chief negotiator for European Union accession talks, said earlier this week that it would be an injustice to ask the military chief to resign from his position. “I do not think it would be fair to ask such an experienced and knowledgeable person to resign over the smallest incident,” he said. Expectation high for suspension of Gen. Hasan Iğsız However, there is a high expectation within the government for Gen. Hasan Iğsız, the 1st Army Corps commander, to be suspended from office until an ongoing investigation into the plot controversy is concluded. The government also expects that five other members of the military who are accused of having contributed to the preparation of the plot will be removed from their positions. Last week civilian prosecutors conducting a probe into a clandestine group known as Ergenekon summoned five members of the military to testify about the plot, but none have done so thus far. Prosecutors also warned that police would use force to bring these members of the military to testify if they do not come voluntarily. The military officer who mailed the plot to İstanbul Chief Public Prosecutor Aykut Cengiz Engin stated in a letter he attached to the plot that the order for the preparation of such an action plan came from Gen. Iğsız. Iğsız was serving as the deputy chief of general staff at the time. “In accordance with a
274
BPM- Weekly Report # 91 Zone 1-Asia
directive by [then-Deputy Chief of General Staff] Gen. Hasan Iğsız, the necessary work was initiated by Lt. Gen. Mehmet Eröz and Maj. Gen. Mustafa Bakıcı, and the action plan was prepared by Col. Dursun Çiçek,” the letter reads. Gen. Iğsız is known to have a close links to Gen. Başbuğ. The government also expects that military members who are suspected of being involved in the plot will be tried at a civilian tribunal. A military investigation was launched into the incident on Monday, but the government does not believe that it will produce reliable results. A previous military investigation into the plot concluded that the document was not prepared at the General Staff headquarters. The government points to a law passed in early July that included a change to Article 5918 of the Turkish Penal Code (TCK) as a legal basis to enable a civilian trial of those involved in the plot. The law allows civilian courts to try members of the armed forces who are accused of crimes, including threats to national security, constitutional violations, organizing armed groups and attempts to topple the government. Military courts are authorized to try members of the armed forces during wartime and periods of martial law. The law came as a revolution in civilian-military relations, analysts argued, as such a move limits the power of the military over civilians. Gov’t determined to follow up the plot issue Bekir Bozdağ, an AK Party parliamentary group deputy chairman, told Today’s Zaman that his party expects all those who committed a constitutional crime to be called to account. “We filed a criminal complaint against the plot in the past. The General Staff announced that a new investigation would be launched if new evidence emerged pointing to the authenticity of the plot. Now we have new evidence at hand. We expect the General Staff to do what is needed to be done. There is a constitutional crime, and it is a must to try those who committed it in a civilian court,” he remarked. Another AK Party parliamentary group deputy chairman, Suat Kılıç, said anyone who is engaged in an act that could open democracy and the rule of law in Turkey to discussion should be called to account. ---------------------------------------------------------------------------------------------------------Turkish Republic enters 86th year amid political tension Friday, 30 October 2009 13:48 Todays Zaman -----------------------------------------------------------Yesterday was Oct. 29, the anniversary of the founding of the modern Republic of Turkey 86 years ago. The day was celebrated with messages, ceremonies and events across the country. However, tensions over an ongoing democratic initiative to expand the rights of Kurds and a recently discovered document showing a military plot to discredit the government could be felt during the events. There were also detentions as some groups not allowed to enter official ceremonies at the city stadium in Denizli defied the ban. President Abdullah Gül, who incidentally also celebrates his birthday on Oct. 29, received congratulations at Parliament yesterday. The morning started with a ceremony at Atatürk's mausoleum in Ankara, after which Gül moved on to Parliament, where he was greeted by Parliament Speaker Mehmet Ali Şahin.
275
BPM- Weekly Report # 91 Zone 1-Asia
In a sign of uneasiness, Prime Minister Recep Tayyip Erdoğan was seen shaking hands only with President Gül during the ceremonies, while he refrained from shaking hands with Chief of General Staff Gen. İlker Başbuğ and main opposition leader Deniz Baykal. Başbuğ had firmly denied accusations that the military had prepared an action plan to discredit the ruling Justice and Development Party (AK Party) and the Gülen movement, a faith-based civil society movement, when a copy of the document first emerged in June. He has been silent, however, since another document, confirmed by Council of Forensic Medicine (ATK) authorities to be the original copy of the plot, emerged last week. At a press conference on Wednesday, Baykal focused on how the document was leaked to the press, declining to discuss its content. Erdoğan and Başbuğ had a brief one-on-one discussion that lasted about five minutes during a reception President Gül hosted at the presidential palace in honor of Republic Day. It was the first contact between the two since the original copy of the document emerged. Erdoğan and Başbuğ were later joined by Parliament Speaker Şahin. Barack Obama Obama calls for deeper partnership in Republic Day message US President Barack Obama has sent a congratulatory message to President Abdullah Gül on the 86th anniversary of the founding of the Turkish Republic, calling for “deepening” the bilateral partnership between the two allies to resolve global issues. “On behalf of the American people, I extend my warmest congratulations to you and the citizens of Turkey on Oct. 29, the 86th anniversary of the founding of the Republic of Turkey by Mustafa Kemal Atatürk as a modern, democratic and secular state,” Obama said in the message, which was published on the Web page of the US Embassy in Ankara. “More than 50 years ago, the United States and Turkey began a partnership that is based on shared values, a common vision and mutual respect. Through this partnership we have worked to resolve conflicts that span the globe. It is my firm belief that Turkey and the United States should continue to deepen this partnership to promote peace and prosperity around the world,” Obama said. “On this important date, I offer my congratulations and my appreciation for the friendship and continued partnership between our two nations,” he concluded. In early December, Prime Minister Recep Tayyip Erdoğan is expected to pay a working visit to Washington upon Obama’s invitation. The visit was originally scheduled to begin in late October and would have coincided with Republic Day. Some members of opposition parties and a number of columnists had criticized the scheduling of Erdoğan’s visit to the US capital on the 86th anniversary of the Turkish Republic -- which was established on Oct. 29, 1923 -- suggesting that it was not appropriate for the prime minister to be at the White House on that particular date. Later, the date of the visit was rescheduled by US and Turkish officials upon Erdoğan’s request. It is now expected to take place on Dec. 7. Ankara Today’s Zaman call early elections next year. “Yes, you are right. Anything can happen,” Erdoğan reportedly replied. The cordial greeting comes shortly after the two leaders came together at the wedding of Constitutional Court President Haşim Kılıç’s daughter. The fact that Erdoğan did not shake Baykal’s hand in a later ceremony at Parliament, however, sends the message that the relationship between the two leaders has yet to be repaired.
276
BPM- Weekly Report # 91 Zone 1-Asia
After a moment of silence, President Gül signed the mausoleum’s guestbook. He wrote: “Great Atatürk, we experience the pride and joy of having brought our republic to its 86th anniversary. The republic has shown the entire world that our nation will never compromise on its independence and liberty. The republic has been proof of our determination to occupy the rightful place we deserve in the contemporary world.” In his message, he emphasized that Turkey has come a long way in the areas of democratization and human rights and highlighted Turkey’s international achievements and contributions to global peace and stability. Ceremony in Parliament Later, the president moved to Parliament, where he received congratulations. After the start of the ceremony, Parliament Speaker Şahin was the first to extend his congratulations, followed by Prime Minister Erdoğan, Chief of General Staff Gen. Başbuğ, Constitutional Court President Kılıç, Supreme Court of Appeals President Hasan Gerçeker, Council of State Chairman Mustafa Birden, members of the Cabinet, force commanders, Republican People’s Party (CHP) leader Baykal, Nationalist Movement Party (MHP) leader Devlet Bahçeli, members of Parliament’s Presidency, AK Party, CHP and Democratic Society Party (DTP) deputies and heads of various government agencies. The president also received heads of foreign missions in Turkey during these ceremonies. DTP leader Ahmet Türk did not join yesterday’s events. DTP deputies present included Sırrı Sakık. Meanwhile, health officials criticized politicians who shook hands at this ceremony despite warnings from the Ministry of Health to avoid handshakes until the swine flu epidemic is no longer a threat. In İstanbul, Governor Muammer Güler, 1st Army Commander Gen. Hasan Iğsız and Mayor Kadir Topbaş, as well as İstanbul Chief Prosecutor Aykut Cengiz Engin, Chief of Police Hüseyin Çapkın and other high-ranking bureaucrats joined the ceremony on the city’s Vatan Street. Protests against PKK returnees Tension broke out in Adana when a group celebrating Republic Day protested the festive atmosphere that emerged after several terrorist Kurdistan Workers’ Party (PKK) members returned to Turkey last week as part of a process to establish peace in the country. The group, carrying Turkish flags and yelling out patriotic slogans, was stopped by riot police when they attempted to entered a stadium where ceremonies were taking place. There were also similar protests in Antalya and Sivas. In Denizli, dozens of individuals were detained when members of the Atatürkist Thought Association (ADD), the CHP, the Democratic Left Party (DSP), the Workers’ Party (İP), several bar associations and others attempted to cross a police barrier and enter the stadium where Oct. 29 celebrations were taking place. Güler uses hand sanitizer as protection against flu İstanbul Governor Muammer Güler cleaned his hands with hand sanitizer after shaking hands with members of the military and politicians during yesterday’s ceremonies held for the 86th anniversary of the Turkish Republic. Güler shook hands with a number of university rectors, civil society leaders, political party leaders and community leaders as well as members of the military during yesterday’s ceremonies. The governor later cleaned his hands with hand sanitizer, which
277
BPM- Weekly Report # 91 Zone 1-Asia
is frequently used as a precaution against the spread of swine flu. İstanbul Mayor Kadir Topbaş and 1st Army Corps Commander Gen. Hasan Iğsız and did the same afterwards. Güler later asked his guards to distribute packages of hand sanitizer to reporters in the hall so that they could protect themselves against the flu. İstanbul Today’s Zaman -----------------------------------------------------------------------------------------------------------GEO-STRATEGIC ISSUES Erdogan Says Pakistan Has a Different Place for Turkey Monday, 26 October 2009 USAD PUBLICATION ------------------------------------------Turkish Prime Minister Recep Tayyip Erdogan said Sunday that Pakistan and its people had a special place for Turkey, adding, "we are two nations and two states sharing common cultural values." Speaking during a banquet hosted in his honor by Pakistani Prime Minister Raza Gilani, Erdogan said it was his third visit to Pakistan. "Both Turkey and Pakistan are going through difficult times. In fact, we are having troubles regionally and globally. In this respect, my visit is very important in such a time," Erdogan said. "Pakistan has a different place for us. Your grief is our grief. Your happiness is our happiness. It has always been so. We are two nations and two states sharing common cultural values," he said. "Our talks concluded that we could carry forward this relation." At the end of his speech, Erdogan also said that Turkey and Pakistan would sign an accord to lift reciprocal visa requirements for Turkish and Pakistani businessmen. Monday, 26 October 2009 -----------------------------------------------------------------------------------------------------------Turkish Premier meets Pakistani counterpart Sunday, 25 October 2009 13:15 TIME TURK ---------------------------------------Turkish Prime Minister Recep Tayyip Erdogan met Sunday with his Pakistani counterpart Yousuf Raza Gilani in Pakistan's capital, Islamabad. The two prime ministers appeared at a joint press conference after a attending a ceremony to sign a number protocols to develop bilateral relations between the two countries. Speaking at the press conference Gilani said Turkey and Pakistan were two strategic partners, sharing similar views in global and regional issues. "We condemn terrorism and extremism under any circumstance and we will find ways to cooperate on this problem," Gilani said. Erdogan said on his part that terrorism had no religion, nation, race and country. "No one should resort to violence in the name of religion. I do not and cannot understand how a Muslim could kill his Muslim brother and defenseless people," he said. The Turkish premier said the two countries shared a will to create a joint platform to fight against terrorism, adding that Turkish and Pakistani intelligence agencies cooperated to tackle terrorist threats. Responding to a question on a recent attack on Iranian revolutionary guards, Erdogan
278
BPM- Weekly Report # 91 Zone 1-Asia
said he would discuss the issue with the Iranian president during a visit to Tehran after completing talks in Islamabad. "We will proceed to Iran and we will have the opportunity to discuss this issue with Iranian president. We need to act in concert to ensure that the region finds peace and stability," Erdogan said. On another question about Turkish military contribution in Afghanistan, Erdogan said Turkey would not send more troops to the country. "We have currently around 17001800 troops there and we do no have plan to send more," he said. ----------------------------------------------------------------------------------------------------Turkish Relief Organization Opens Disaster Coordination Center in Pakistan Monday, 26 October 2009 USAD PUBLICATIONS ----------------------------------------------------Turkish relief organization, Turk Kizilayi (Red Crescent), opened a "Disaster Coordination and Logistics Center" in Pakistan. President Raja Zulqarnain Khan of the autonomous region of Jammu and Kashmir, and Tekin Kucukali, director-general of Turkish Red Crescent, inaugurated the center. "We established the biggest and most equipped disaster coordination center of the region in Pakistan. Turkish Red Crescent is the first relief organization which arrived in the region during the devastating quake disaster of 2005 which killed 76 thousand people and left thousands of others homeless," Kucukali said. The center offers uninterrupted communication opportunities with four different provinces of Pakistan in case of a natural disaster. It also has the capacity to arrange international relief operations. The center cost about 2.2 million USD. Monday, 26 October 2009 -----------------------------------------------------------------------------------------------------------Erdoğan pledges solidarity with Pakistan against terrorism Tuesday, 27 October 2009 13:04 Todays Zaman ------------------------------------------------Calling Pakistan a key country for global stability that is situated at the crossroads of southern, central and western Asia, Prime Minister Recep Tayyip Erdoğan on Monday voiced confidence in Pakistan's eventual success in its fight against terrorism. Erdoğan's remarks came on the second and last day of his official visit to Pakistan as he was addressing members of Pakistan's Parliament. Two houses of the Pakistani Parliament, the National Assembly and the Senate, held a joint session for Erdoğan's address. Recalling that representatives of all political parties represented at the time in Turkish Parliament had condemned the assassination of the late Pakistani Prime Minister Benazir Bhutto in December 2007 in a joint declaration, Erdoğan added that “our people showed full solidarity with the Pakistani people [at the time].” On Monday, Pakistan killed 19 suspected militants and lost six soldiers while fighting inside a Taliban stronghold close to the Afghan border, as insurgents elsewhere in the frontier region struck back with deadly attacks. The fierce clashes in South Waziristan and regions further north showed the difficulties
279
BPM- Weekly Report # 91 Zone 1-Asia
facing Pakistan’s stretched army as it seeks to root out militants close to its northwestern border, from where Western officials say they also plan attacks on targets inside Afghanistan. Militant attacks in Pakistan have surged this month, killing more than 200 people, as the Taliban has tried to avert the army offensive in South Waziristan. The military announced Saturday it had captured the hometown of Pakistani Taliban chief Hakimullah Mehsud -its first major achievement in the offensive. “I believe that Pakistan will definitely reach success in its struggle against terrorism, which is a joint enemy of humanity. You are not alone in the fight against terror and fundamentalism. What our society tells us about the issue is the best choice is always the middle way, not the extremes. We never favor extremism,” Erdoğan told the Pakistani Parliament, while underlining that Turkey too has suffered much from terrorism. “Now is the time for unity and togetherness, not for separation. I believe that Pakistan will leave behind its current problems through acting on the basis of national compromise and solidarity,” Erdoğan added. Earlier on Monday, Pakistani President Asif Ali Zardari decorated Erdoğan with the presidential medal of merit, Nishan-e-Pakistan, which is the country’s highest civil award, “for being a supporter and defender of Pakistan in the international arena in addition to making contributions to improving political and economic relations between Pakistan and Turkey.” Erdoğan was accompanied by his wife, Emine Erdoğan, as well as Foreign Minister Ahmet Davutoğlu, State Minister Zafer Çağlayan, Energy Minister Taner Yıldız and State Minister Mehmet Aydın, during the decoration ceremony. Ahead of the decoration ceremony, the prime minister also visited Muzaffarabad, a city in the disputed region of Kashmir that was the location of a devastating earthquake in 2005. One year after the earthquake, the Housing Development Administration of Turkey (TOKİ) rebuilt public buildings, mosques, sports facilities and a library and handed them over to the Kashmir administration. The rebuilding efforts cost $36 million. In Muzaffarabad, Erdoğan voiced pleasure over seeing the city maintaining a normal life. In 2005, Erdoğan was the first foreign leader to visit the earthquake-ruined region, paying a visit to the region less than two weeks after the earthquake. İmam-hatip model against fundamentalism Religious imam-hatip high schools may offer a model for Pakistan in order to prevent religious fundamentalism, Pakistani Prime Minister Yousuf Raza Gilani told Erdoğan during their meeting on Sunday. In response to Gilani, who expressed a desire to send a delegation to examine imam-hatip high schools, Erdoğan replied affirmatively, adding: “İmam-hatip high schools in our country provide education according to a normal high school curriculum. However, there are certain classes about religion. After high school, students are able to go to any university department they wish.” Erdoğan, meanwhile, also noted that he studied at an imam-hatip high school and that he later graduated from the economy department at Marmara University. -----------------------------------------------------------------------------------------------------------Turkey to mediate between Iran and Pakistan Monday, 26 October 2009 10:39 Todays Zaman
280
BPM- Weekly Report # 91 Zone 1-Asia
------------------------------------------------Prime Minister Recep Tayyip Erdoğan said yesterday that he had talked about a deadly bombing in Iran earlier this month which was allegedly perpetrated by Pakistan with his Pakistani counterpart, Yousuf Raza Gilani, and would also discuss the incident wit The Turkish prime minister is on a two-day official visit to Pakistan aimed at further strengthening the relationship between the two countries. Addressing a joint press conference after private talks at the Pakistani Prime Ministry yesterday, in response to a question on a recent attack on Iranian revolutionary guards, Erdoğan said he discussed the issue with Gilani and will also discuss it with Iranian President Mahmoud Ahmadinejad during a visit to Tehran after completing talks in Islamabad. “We will proceed to Iran and we will have the opportunity to discuss this issue with the Iranian president. We need to act in concert to ensure that the region finds peace and stability,” Erdoğan said. In early October a suicide bomber killed five senior commanders of the powerful Revolutionary Guard and at least 37 others near the Pakistani border, an area where the Sunni insurgency has been escalating. The attack -- which also left dozens wounded -was the most high-profile strike against security forces in an outlaw region of armed tribal groups, drug smugglers and Sunni rebels known as Jundallah, or Soldiers of God. Iran held Pakistan, as well as the United States and Britain, responsible for the bombing. Responding to another question about infiltrations from Afghanistan into Pakistan and Turkey's role, being a member of NATO, in dealing with this, Erdoğan said his country will assume the command of the International Security Assistance Force (ISAF) in Afghanistan on Nov. 1 while terming the problem a “disturbing issue.” “It is the biggest mistake to kill a person in the name of religion,” Erdoğan said, and pointed out that terrorism recognizes no boundaries or religions. Urging flexibility and tolerance, he said, “No matter what ideology one has, he should try to find some middle ground.” -----------------------------------------------------------------------------------------------------------Erdoğan: West treats Iran unfairly Monday, October 26, 2009 ISTANBUL – From wire dispatches -------------------------------------------------------In an interview with British daily The Guardian, Prime Minister Recep Tayyip Erdoğan said Iran was a “friend” and that Western powers were treating Iran unfairly over its nuclear program. Erdoğan downplayed Western fears that Iran wants to build an atomic bomb as "gossip" and said a military strike against Iranian nuclear installations would be "crazy.” He also strongly implied that those countries that were pressuring Iran to clarify its goals were guilty of hypocrisy because they all had nuclear weapons themselves. “There is a style of approach that is not very fair because those [who accuse Iran of pursuing nuclear weapons] have very strong nuclear infrastructures and they don't deny that," Erdoğan said. "The permanent members of the U.N. Security Council all have nuclear arsenals and then there are countries which are not members of the International Atomic Energy Agency [IAEA], which also have nuclear weapons. So although Iran doesn't have a weapon, those who say Iran shouldn't have them are those countries which do."
281
BPM- Weekly Report # 91 Zone 1-Asia
But Erdoğan indicated he accepted Iranian protestations that the program was peaceful and said he was more concerned about threats – mainly from Israel – to "devastate" Iran. "Those who are criticizing Iran do not present their arguments very well," he said. "Sometimes threats are made. If the idea is to devastate Iran or somehow erase it altogether I do not think that would be right," he said. “Friendly toward a religious theocratic Iran, covetous and increasingly resentful of a secular but maddeningly dismissive Europe: it seems the perfect summary of Turkey's east-west dichotomy,” the Guardian wrote about the current Turkish foreign policy. After Ahmadinejad's disputed presidential election in June, Erdoğan and Turkish President Abdullah Gül were among the first foreign leaders to congratulate the Iranian president, “ignoring the mass demonstrations and concerns of Western leaders over the result's legitimacy,” read the Guardian article. Erdoğan called the move a “necessity of bilateral relations.” “Mr. Ahmadinejad was declared to be the winner, not officially, but with a large vote difference, and since he is someone we have met before, we called to congratulate him,” he said. The gesture will be remembered when Erdoğan arrives in Tehran this week for talks with Ahmadinejad and Ayatollah Ali Khamenei, Iran's supreme leader, that will focus on commercial ties, including Turkey's need for Iranian natural gas, wrote the daily. Erdoğan poured cold water on Western accusations that Iran is seeking a nuclear weapon, saying: "Iran does not accept it is building a weapon. They are working on nuclear power for the purposes of energy only." His comments came as a team from the U.N. nuclear watchdog continues its inspection of a previously secret uranium plant near the city of Qom. Erdoğan's views will interest U.S. foreign policy makers, who have long seen his Justice and Development Party, or AKP, government as a model of a pro-Western "moderate Islam" that could be adopted in other Muslim countries, wrote the newspaper. It said: “They will also find an audience with President Barack Obama, who signaled Turkey's strategic importance in a visit last April and has invited the prime minister to visit Washington. They are unlikely to impress Israel, which has warned that Erdoğan's criticisms risk harming Turkey's relations with the U.S.” The Guardian said Erdoğan dismissed the notion, saying: "I don't think there is any possibility of that. America's policy in this region is not dictated by Israel." Erdoğan's visit to Iran will coincide with that of the IAEA inspectors, who arrived in Iran yesterday to inspect a uranium enrichment facility near Qom. Disclosure of the plant's existence last month intensified Western concerns about the nature of Iran's nuclear activities. Iran agreed to open the site to monitoring at talks with the five permanent members of the UN Security Council plus Germany in Geneva on Oct. 1. Iran says its nuclear program is for purely peaceful purposes but the revelation of the existence of the new plant increased fears in the West about Tehran's intentions. ----------------------------------------------------------------------------------------------------------Turkish Premier Speaks To Guardian Newspaper: "Iran Is Our Friend" Monday, 26 October 2009 14:37 TIME TURK --------------------------------------------------------
282
BPM- Weekly Report # 91 Zone 1-Asia
Turkish Prime Minister Recep Tayyip Erdogan said, "there is no doubt Iranian President Mahmoud Ahmadinejad is our friend. As a friend so far we have very good relations and have had no difficulty at all." The British Guardian newspaper gave broad place to an interview with the Turkish prime minister. "The Turkish prime minister, Recep Tayyip Erdogan, has exposed divisions in NATO by accusing the west of treating Iran unfairly over its nuclear programme and describing Mahmoud Ahmadinejad, its vehemently anti-western president, as a friend," the daily wrote. The Guardian said, "Erdogan poured cold water on western accusations that Iran is seeking a nuclear weapon, saying: 'Iran does not accept it is building a weapon. They are working on nuclear power for the purposes of energy only'." "In the interview, Erdogan down-played western fears that Iran wants to build an atomic bomb as 'gossip' and said a military strike against Iranian nuclear installations would be 'crazy'. He also strongly implied that those countries which were pressuring Iran to clarify its goals were guilty of hypocrisy because they all had nuclear weapons themselves," it commented. The daily quoted Prime Minister Erdogan as saying, "there is a style of approach which is not very fair because those (who accuse Iran of pursuing nuclear weapons) have very strong nuclear infrastructures and they don't deny that." Erdogan told the newspaper, "the permanent members of the UN security council all have nuclear arsenals and then there are countries which are not members of the International Atomic Energy Agency (IAEA) which also have nuclear weapons. So although Iran doesn't have a weapon, those who say Iran shouldn't have them are those countries which do." The daily said that Erdogan expressed concerns about threats mainly from Israel, and quoted him as saying, "those who are criticising Iran do not present their arguments very well. Sometimes threats are made. If the idea is to devastate Iran or somehow erase it altogether I don't think that would be right. "On the one hand you say you want global peace, on the other hand you are going to have such a destructive approach to a state which has 10,000 years of history. It is not correct." The Guardian wrote that Erdogan and Turkish President Abdullah Gul were among the first foreign leaders to make congratulatory phone calls to Ahmadinejad after the elections in June. "Talking to the Guardian, Erdogan called the move a 'necessity of bilateral relations'. 'Mr Ahmadinejad was declared to be the winner, not officially, but with a large vote difference, and since he is someone we have met before, we called to congratulate him,' he said," the daily wrote. The daily quoted Prime Minister Erdogan about the EU process, "among leaders in Europe there are those who have prejudices against Turkey, like France and Germany. Previously under Mr Chirac, we had excellent relations (with France) and he was very positive towards Turkey. But during the time of Mr Sarkozy, this is not the case. It is an unfair attitude. The European Union is violating its own rules. Being in the European Union we would be building bridges between the 1.5bn people of Muslim world to the non-Muslim world. They have to see this. If they ignore it, it brings weakness to the EU." ------------------------------------------------------------------------------------------------------------
283
BPM- Weekly Report # 91 Zone 1-Asia
--------------------Erdoğan rebukes West over ‘unfair’ pressure on Iran Tuesday, 27 October 2009 13:05 TIME TURK ----------------------------------Prime Minister Recep Tayyip Erdoğan accused the West of treating Iran “unfairly,” warning ahead of a visit to Tehran that negative approaches towards the Islamic republic over its controversial nuclear program would harm regional peace. Erdoğan’s remarks in an interview with Al Jazeera television, excerpts of which were published by the Anatolia news agency on Monday, came as world powers await Iran’s response to a United Nations-drafted deal for it to cut an atomic stockpile which the West fears could be used for weapons, ignoring an Oct. 23 deadline and challenging the basis of the pact. Erdoğan was to fly to Tehran later on Monday after concluding Turkish Premier Meets Iran'S President Iranian President Mahmud Ahmadi-Nejad received Turkish Prime Minister Recep Tayyip Erdogan in Tehran on Tuesday. ----------------------------------------------------------------------------------------------------------Turkey Determined to Enhance Ties With Iran: Erdogan Wednesday, 28 October 2009 USAD PUBLICATIONS ---------------------------------------------------------TEHRAN - In a meeting with Iranian President Mahmoud Ahmadinejad here on Tuesday, Turkish Prime Minister Recep Tayyip Erdogan said Turkey is determined to enhance its ties with Iran. Ahmadinejad told Erdogan that unity is the best way to turn threats into opportunities. Iran and Turkey are two brotherly nations that have common interests and are facing similar threats, and if they strengthen their unity, they will be able to overcome the threats and take advantage of the opportunities, he noted. “Iran-Turkey bilateral relations are not only in the interests of the two nations, but also (in the interests of) the region and the world,” the Iranian president observed. He also stressed the need to maintain unity among all regional states in order to foil the plots hatched by the enemy, the Presidential Press Department reported. “The presence and interference of foreign powers have created many economic and security problems for regional countries… and the stronger the relations of the regional states, the less threats the region will face,” Ahmadinejad noted, adding, “Today, the West has theoretically and practically reached an impasse in its policy.” He also praised Turkey’s stance on Israel, saying, “The Zionist regime is a threat to all nations… it cannot tolerate the existence of any strong country in the region.” Two weeks ago, Turkey barred Israel from a NATO exercise, a decision that angered Israel and prompted rare criticism from Turkey’s ally the United States. The war games were cancelled after other nations, including the United States and Italy, refused to take part without Israel. Diplomatic relations between Turkey and Israel have suffered since Israel’s offensive in the Gaza Strip last winter. At the time, Erdogan accused Israel of committing crimes against humanity.
284
BPM- Weekly Report # 91 Zone 1-Asia
Praising Ankara’s stance on Iran’s peaceful nuclear activities, Ahmadinejad said that when a country “has illegal access to nuclear weapons,” others cannot be deprived of the right to access to nuclear technology solely for the purpose of generating electricity. The Turkish prime minister called for the expansion of Tehran-Ankara ties and said, “Turkey is determined to enhance its brotherly relations with Iran.” On Iran’s participation in the Nabucco gas pipeline project, Erdogan said, “Sooner or later, Nabucco (the project’s parties) will discover the importance of the Islamic Republic’s involvement in the project.” The Nabucco gas pipeline project is designed to pump Central Asian gas via Turkey to Austria and Germany through Bulgaria, Romania, and Hungary, bypassing Russia. Gas supplies through the pipeline are expected to start in 2014. The project will be a continuation of the existing Baku-Tbilisi-Erzurum pipeline and will transport 20 billion cubic meters of gas a year. Two-thirds of the pipeline will pass through Turkish territory. Azerbaijan, Uzbekistan, Turkmenistan, Iran, and Iraq are being touted as potential suppliers.Iran has the world’s second largest gas reserves after Russia and the second biggest oil reserves in OPEC after Saudi Arabia. The Nabucco pipeline is seen as a rival to the Moscow-backed South Stream project, which is designed to annually pump 31 billion cubic meters of Central Asian and Russian gas to the Balkans and onto other European countries, with the pipeline’s capacity expected to be eventually increased to 63 billion cubic meters annually. Erdogan and his high-ranking delegation arrived in Tehran on Monday night. During his two-day stay in Iran, the Turkish prime minister is also scheduled to meet with Supreme Leader of the Islamic Revolution Ayatollah Seyyed Ali Khamenei and Majlis Speaker Ali Larijani. He will also attend a joint economic meeting between Iran and Turkey and a press conference and hold a meeting with a number of Iranian merchants and tradesmen at the Iranian Chamber of Commerce. Erdogan’s delegation of 200 high-ranking political and economic officials includes 20 Turkish MPs, Turkey’s ministers of foreign affairs, energy, foreign trade, culture, environment, and industry, and eighty representatives of private sector companies as well as 30 media representatives. It is the Turkish prime minister’s second trip to Iran over the past four years. Ahead of his visit to Iran, Erdogan traveled to Pakistan on Saturday for a two-day trip and met with Pakistani officials in Islamabad. ------------------------------------------------------------------------------------------------------Turkey, Iraq plan second organized industry zone Friday, 30 October 2009 17:38 TIME TURK ----------------------------------------------------------Zafer Caglayan and Turkish Foreign Minister Ahmet Davutoglu are on a visit to Iraq for trade talks with a large group of Turkish businessmen. Turkey and Iraq will collaborate to set up an organized industry zone in Iraq's second largest city Basra, Turkish state minister for foreign trade said on Friday. Zafer Caglayan and Turkish Foreign Minister Ahmet Davutoglu are on a visit to Iraq for trade talks with a large group of Turkish businessmen.
285
BPM- Weekly Report # 91 Zone 1-Asia
Turkey and Iraq have already been working on a project to establish such an industry zone in Nasiriyah, Zafer Caglayan told a joint press conference with Iraq's Minister of Trade Safaa al-Deen al-Safi and Governor Abboud Cltag Mayah of the Iraqi city of Basra. "A similar one will soon be established here in Basra," Caglayan said. Turkish and Iraqi officials met in Baghdad two weeks ago for the meeting of Turkey-Iraq High-Level Strategic Cooperation Council and signed 48 memoranda of understanding, Caglayan recalled. He said those agreements would play a "key" role in Iraq's economic and commercial future. Caglayan also said that there were six large-scale industrial plants in Basra, which he described as Iraq's commercial capital, and added that these plants had been partially operated especially in chemical industry. "We will also have talks with Iraqi officials to hand over these plants to Turkish businessmen to be fully operated," he said. Caglayan said Turkey would also organize a trade fair in Basra. -------------------------------------------------------------------------------------------------------Turkish Minister Says Turkey, Iran to Sign Energy Deal Tuesday, 27 October 2009 USAD PUBLICATIONS ---------------------------------------------The Turkish energy minister said on Tuesday that Turkey and Iran would sign an energy deal on Wednesday. Turkey's Energy and Natural Resources Minister Taner Yildiz said that Iran was a country rich of oil and natural resources. "We are developing a framework agreement according to Iran's model where there is no transfer of property, and we hope we will sign it tomorrow," Yildiz told reporters in Tehran. Yildiz is actually accompanying Turkish Prime Minister Recep Tayyip Erdogan, who is visiting the Iranian capital. The Turkish energy minister also said Iranian company and Turkish Petroleum Corporation would make explorations in South Pars basin, and the exploration would begin either in the first or the second week of November. Yildiz said Turkey would have the right to market and trade, and almost half of the natural gas would be sold either in Turkey or via Turkey. "We foresee striking almost 35 billion cubic meters of gas," he also said. Yildiz said South Pars project might cost over 4 billion USD. The South Pars / North Dome field is a gas condensate field located in the Persian Gulf. It is the world's largest gas field, shared between Iran and Qatar. This gas field covers an area of 9700 square kilometers, of which 3700 square kilometers (South Pars) is in Iranian territorial waters and 6000 square kilometers (North Dome) is in Qatari territorial waters. Condensate production from South Pars is currently 200,000 bbl/d (32,000 m3/d), and by 2010, could increase to over 500,000 bbl/d (79,000 m3/d). Also, Yildiz said Turkey was holding talks with Azerbaijan on natural gas, and hoped to reach an agreement soon.
286
BPM- Weekly Report # 91 Zone 1-Asia
-----------------------------------------------------------------------------------------------------------Iran’s nuke program for humanitarian ends, Erdoğan says Wednesday, 28 October 2009 12:02 Todays Zaman ------------------------------------------------Prime Minister Recep Tayyip Erdoğan on Tuesday said he has had the conviction that the motive behind Iran's nuclear program has been peaceful and humanitarian, diverging from the widespread notion among Western nations, which suspect Iran is seeking to de Erdoğan's remarks came in Tehran as he was speaking to reporters following talks with Iranian President Mahmoud Ahmadinejad and First Vice President Mohammad Reza Rahimi during an official visit to the neighboring country. The Islamic republic denies the charge and says its nuclear program is aimed at generating electricity. When asked whether he discussed the nuclear controversy during his talks with Iranian officials, Erdoğan replied affirmatively and added that Iran had shown its sincerity during talks in Geneva with Western powers. He was probably referring to Iran's promise in Geneva to give inspectors from the International Atomic Energy Agency (IAEA) access to a newly disclosed nuclear enrichment plant near the city of Qom. The inspectors arrived in Iran early on Sunday. “Here there is an approach saying, ‘Let's work on establishing a joint consensus and assume the process within the framework of this consensus',” says Erdoğan. He said Iran had already voiced willingness to cooperate with both Russia and the United States on nuclear enrichment. “Consequently, a positive response to this positive approach [by Iran] will improve the process towards a much more positive direction. This is an exercise on nuclear energy; it is an exercise with peaceful and humanitarian goals,” Erdoğan said. Earlier this week Erdoğan accused the West of treating Iran unfairly over its nuclear program, in comments that come as world powers await Tehran's response to a UNdrafted plan which would require it to send potential nuclear fuel abroad. State broadcaster IRIB said Erdoğan stressed Iran's nuclear rights in his meeting with Ahmadinejad. “Those chanting for global nuclear disarmament should first start in their own countries,” Erdoğan said, according to the Iranian broadcaster. In a separate meeting, Rahimi told Erdoğan that a “golden opportunity” existed for the expansion of bilateral ties. Turkey, a mainly Muslim country seeking European Union membership and dreading the thought of a nuclear Iran, says it is willing to mediate between Iran and the West. Bilateral Iran-Turkey trade reached $7 billion in 2008. Turkey's Energy Minister Taner Yıldız told Reuters last week he hoped the two countries could finalize a $3.5 billion deal to develop part of the world's largest gas field in Iran. Natural gas deal Speaking to reporters in Tehran on Tuesday, Yıldız said Turkey and Iran would today [Wednesday] sign a framework agreement to jointly explore natural gas in the South Pars basin. “We will start practices in the first or second week of November. We will come here with a delegation which will conduct technical studies,” Yıldız said, adding that at least half of the natural gas to be explored, estimated to be around 35 billion cubic meters, would be marketed either in Turkey or via Turkey.
287
BPM- Weekly Report # 91 Zone 1-Asia
Iran is Turkey's second-biggest supplier of natural gas after Russia. Turkey has said that Iranian gas can help the planned Nabucco pipeline to supply Europe and lessen the continent's dependence on Russian deliveries. “I believe Nabucco will sooner or later understand the importance of Iran's presence,” Erdoğan told Ahmadinejad, referring to the pipeline consortium, the IRNA news agency reported. Ahmadinejad praises Erdoğan on Israel stance Ahmadinejad, meanwhile, praised Erdoğan for his “clear stance against” Israel, Iran's state media reported. Ahmadinejad, who has repeatedly predicted Israel's imminent demise, blamed foreign states for regional problems and called for an expansion of Tehran-Ankara ties. His comments appeared aimed at the West, including Turkey's ally, the United States. “The more regional countries expand their ties and get closer to each other, the more they can remove their problems and limit the ill-wishers which have plots against them,” IRIB quoted Ahmadinejad as telling Erdoğan. “Iran-Turkey cooperation would benefit both countries, the region and the whole Islamic world,” he said. “Your clear stance against the Zionist regime had a positive impact in the world which undoubtedly made all nations happy,” Ahmadinejad said in the meeting, IRIB reported. Iran does not recognize Israel, which it refers to as the Zionist state. Erdoğan's visit to Iran comes two weeks after Turkey barred Israel from a NATO exercise, a decision that angered Israel and prompted rare criticism from the United States. Diplomatic relations between Turkey and Israel have suffered since Israel's offensive in the Gaza Strip last winter, in which Erdoğan accused Israel of committing crimes against humanity. -----------------------------------------------------------------------------------------------------------------------------Turkey, Iran sign strategic deal to carry gas to Europe Friday, 30 October 2009 09:19 Todays Zaman --------------------------------------------------Energy Minister Taner Yıldız (L) and Iranian Oil Minister Masoud Mirkazemi shake hands after signing a deal on gas, as PM Tayyip Erdoğan and Iran's Vice President Mohammad Reza Rahimi watch the event on a couch. Iran and Turkey signed a number of deals on Wednesday to facilitate the efficient flow of gas through Turkey to Europe, including accords on allocating some of Iran's South Pars gas field to the Turkish Petroleum Corporation (TPAO), allowing Iranian gas to be transported via Turkey and allowing Turkmenistan's natural gas to be pumped to Turkey via Iran, during Turkish Prime Minister Recep Tayyip Erdoğan's visit to Turkey's southeastern neighbor. Turkish Energy Minister Taner Yıldız said the deals provided advantages for Turkey in the use and the sale of some phases of the South Pars gas field. "Its conditions and prices will be negotiated later," the minister added. Iran, which has the world's second-largest natural gas reserves, is Turkey's second-biggest supplier of natural gas after Russia. Turkey had signed a preliminary deal in November 2008 for Iranian gas to be exported to Europe through Turkey and for Turkey to produce gas in the South Pars field.
288
BPM- Weekly Report # 91 Zone 1-Asia
The investment would amount to $3.5 billion. But this deal has been delayed by objections from the United States, which opposes new energy deals in Iran as part of Western efforts to isolate Tehran over its nuclear program. Iranian media said earlier that Iran had agreed to a Turkish request for a three-month extension of a deadline to finalize the South Pars deal in order to clarify pricing and other details. "We have more steps to take on the economy, trade, oil and gas to promote cooperation," Erdoğan said. Iran is under US and UN sanctions over nuclear work Tehran says is for peaceful power generation but which the West suspects is aimed at making bombs. Turkey has said that Iranian gas can help the planned Nabucco pipeline supply Europe and lessen the continent's dependence on Russian deliveries. The agreement, which was signed by Minister Yıldız and Iranian Oil Minister Masoud Mirkazemi under the supervision of Erdoğan and Iran's vice president, Mohammad Reza Rahimi, also envisaged the establishment of a joint working group to study the possibilities of substituting fields in the South Pars region which were formerly allocated to Turkey with richer fields. Yıldız said Turkey's step towards Iran is in accordance with its policy of establishing “zero-problem” relations with its neighbors and advancing to a maximum level of energy cooperation with surrounding countries. “As you would know, the transfer of property rights of oil and natural gas deposits is not a matter of discussion, as set out in their Constitution. All you can get is the land tenures of these fields, for temporary periods of time. We will have the right to sell, for instance, half of the gas extracted from the field. Of course additional conditions and the prices will be discussed later. After a series of studies on the fields, a ballpark quantity of the deposits beneath the earth will be determined,” the minister said about the process. TPAO will later start exploring and extracting the gas reserves and will also be able to establish platforms to drill into the earth up to 150 meters in search of gas. Following that, the company will start production and sales. In addition to increased energy cooperation, the two countries further agreed to strengthen their banking and transport ties in a drive to almost treble trade between the two neighbors to $20 billion in the next few years. As of the end of 2008, total trade volume was roughly $7 billion. "The two countries are determined to expand their bilateral relations in all fields," Rahimi told attendees of a joint news conference with Erdoğan. Erdoğan, on the other hand, said he welcomed an Iranian call for trade volume to eventually reach $30 billion. Rahimi said the two sides reached a series of agreements, including building two power plants, setting up a free industrial zone on both sides of the border and on Iranian and Turkish banks opening branches in the other country. --------------------------------------------------------------------------------------------------------British FM writes EU must welcome Turkey’s EU membership Monday, October 26, 2009 ISTANBUL – From wire dispatches ----------------------------------------------------------------In an article in The Times daily on Monday, British Foreign Secretary David Miliband writes that the European Union should welcome new members, including Turkey. He
289
BPM- Weekly Report # 91 Zone 1-Asia
adds that the British commitment to and strength in Europe is good for Britain and good for Europe In an article in The Times on Monday, British Foreign Secretary David Miliband wrote that the European Union should welcome Turkey as an EU member. Miliband’s article comes ahead of the two-day Brussels summit of EU leaders starting Thursday. “Europe is far from perfect. It needs reform. But to get that it needs Britain,” read the article. It added that British commitment to and strength in Europe was good for Britain and good for Europe. “Our role in Europe magnifies the power of our ideas, and strengthens our international clout in Washington, Beijing and Moscow. Europe needs our hardheaded pragmatism and global mindset,” it read. Miliband wrote: “Europe’s enlargement has been an important force for democracy in former dictatorships. We need further advance. The western Balkans, Turkey and Ukraine all want to join eventually. We should welcome them.” The 27-country bloc has to prioritize its relations with Washington, Beijing and Moscow, wrote Miliband, who has repeatedly denied reports in recent days that he was touting his credentials for the newly created job billed as the EU's foreign minister. “We need to step up European efforts to address global conflicts and crises. Europe has the world’s second-biggest aid budget, and armed forces and police doing vital work,” said Miliband. “Pakistan should be top of the list for a new drive on aid, trade and engagement. We need Europe to prioritize relations with the great and emerging powers: the U.S. on security, China on climate change, Russia on energy,” he said. The United Kingdom has played an influential role in foreign policy, wrote Miliband. He said four factors were key in British foreign policy. “First, we embrace the internationalism of the modern world, with its new powers and new threats. Britain is a leading contributor of people and money in tackling the great challenges of the world,” he wrote. Miliband believes the second factor in British foreign policy were British ideas. “[They] give us influence … They make us activists — sometimes a nuisance, but always seeking to be part of the solution,” he wrote. “Third, our values set a high standard. Transparency, as well as ambition, are important factors in how others see us,” Miliband said. “Fourth, Britain is at the heart of a unique web of international networks,” read the article. “In addition to these four areas, the British government is proud that our leadership in the European Union is an indispensable part of Britain’s global role. Margaret Thatcher said in 1975 that Europe ‘opens windows on the world for us that since the war have been closing,’” said Miliband. “I never expected to say this, especially on Europe, but she was right.” Miliband sees these EU relationships not as being threats to Britain’s bilateral relations, but rather complementing them. “But we need Europe to step up and show it can be a strategic and serious partner, worthy of the world’s largest market and strongest regional alliance,” he said. “The multi-polar world is here. Neither hubris, nostalgia nor xenophobia provide a guide. But we need to be internationalists for our prosperity and security; and we have a lot to offer. We gave up the empire a long time ago. Under this government, we have found our role. We turn inwards at our peril,” wrote Miliband. ------------------------------------------------------------------------------------------------------------
290
BPM- Weekly Report # 91 Zone 1-Asia
Turkey, France enter new era, says EU diplomat Tuesday, October 27, 2009BARÇIN YİNANÇ ISTANBUL - Hürriyet Daily News -----------------------------------------------------------------The strained relationship between Turkey and France has entered a new era, said a European official, adding that the government in Paris is softening its position toward Turkey’s European Union membership bid. French officials will no longer use the concept “privileged partnership,” as an alternative to EU membership, and according to the new understanding reached between Ankara and Paris, bilateral relations will now begin a new dimension, the same official told the Hürriyet Daily News & Economic Review on Monday. With clear support from Germany, French President Nicolas Sarkozy has continuously objected to Turkey’s entry to the EU and instead offered an alternative framework to regulate Turkish-EU relations, called “privileged partnership.” Turkey has repeatedly rejected this motion, saying its goal is full EU membership. “As the French saying goes, France has put water in the wine. In other words, it is softening its position,” said a well-informed official, who asked to remain anonymous. France will continue to block entry talks in five areas, said the official, adding: “France will no longer talk about privileged partnership. This concept will not be mentioned anymore.” Turkey has to negotiate 25 chapters to enter the EU. France has blocked talks on five chapters using the argument that concluding negotiations on these five chapters will directly lead to membership. Increased cooperation The new understanding, which was reached after a series of official contacts between Ankara and Paris, was hammered out by Sarkozy and Turkish President Abdullah Gül during the latter’s visit to Paris in early October. According to the new understanding, cooperation on all fields will intensify. “While there is no change in substance on French policy about Turkey’s EU bid, it seems there is a softening in the tone,” said retired Turkish diplomat Yalım Eralp. “What the French propose is to have increased cooperation in more fields and get the two countries closer. In turn, the EU issue with the five chapters being the exception will not be an issue of contention," Eralp told the Daily News. “Yet statements coming from the leaders from time to time can spoil this apparent mood of softening,” he said. “Turkish-French relations should not be sabotaged by a divergence of view that is about something that will take place in five, 10 or 15 years from now,” said the European official. “The French and the Turks made the decision to work on all issues that bring them closer,” he added. “What the French are trying to do is to seduce Turks by improving bilateral relations and convince Turkey that while reaping the benefits of bilateral ties, it should forget about membership. If this is the intention, the efforts will be in vain. Because there is no alternative to membership,” said retired Ambassador Özdem Sanberk, who was also the former undersecretary of the Foreign Ministry. “As far as the French are concerned, this might be the right strategy on their part. Yet if France thinks of implementing this strategy with the expectation that Turkey will one day give up its membership bid, the strategy will backfire. Turkey will never give up its membership objective. It will never
291
BPM- Weekly Report # 91 Zone 1-Asia
replace it for better ties with France,” he said adding that the new understanding could turn out to be counterproductive. Furthermore, Sanberk said that deeds count more than words, and in this respect Turkey should continue to monitor France’s action on Turkey’s entry efforts. The first test case might prove to be the Cyprus issue. The EU might decide to impose a sanction on Turkey with the argument that Turkish ports are not open to shipping from Greek Cyprus. Although the European Commission has not come with any advice on that direction, France’s position will be very important to change the view of the majority of member states, which believe no sanction should be imposed on Turkey. “France believes that there should be consequences,” said the European official. Although it might not be militant on the issue, France might suggest a course of action that will be short of striking a strong blow to the accession process, but nevertheless send a signal to Turkey. When asked whether France wants an end to the Turkish policy of keeping out French firms from important tenders in turn for avoiding the “two-p-words,” the European official said that the new will to cooperate goes beyond this simplistic perspective: “There is a real will to cooperate. France and Turkey have a lot in common. The two have the same vision on many issues. There is plenty of room to cooperate on regional issues, for instance,” he said. -------------------------------------------------------------------------------------------------------EU, Turkey and visa ban with Syria Sunday, October 25, 2009 BARÇIN YİNANÇ ------------------------------------------The progress on the ratification of the Lisbon Treaty has brought a new breath of optimism to European Union circles. This optimism, unfortunately, does not reflect itself in Turkish-EU relations. This fact could be easily observed during the Bosphorus Conference that took place in Istanbul ten days ago. Supported by the British Council, the European Commission as well as the Turkish Economic and Social Studies Foundation, an Istanbul based thinktank, the conference held every autumn provides a good opportunity to overview the current state of affairs between Turkey and the EU. The conference took place under the shadow of Turkey’s fast growing relations with the Middle East. Whether or not Turkey is drifting away from Europe was a main theme discussed during the brainstorming exercise attended by representatives of civil society as well as EU officials like Olli Rehn, the Commissioner for Enlargement, a regular attendee at the Conference. Only a few hours before the conference, Prime Minister Recep Tayyip Erdoğan was in Baghdad with several ministers to sign more than 40 agreements. That visit followed the visit of Foreign Minister Ahmet Davutoğlu to Syria, where, accompanied by half a dozen ministers, he crossed the border to highlight the agreement to ban visa regulations between the two countries. Although Davutoğlu was asked about possible reaction from the EU on the visa ban, the implications of visa free travel to and from Syria on Turkey’s relations with the EU has not received much focus from the Turkish press. This is indicative of the fact that the EU perspective is not as present on the radar of the Turkish press as it used to be.
292
BPM- Weekly Report # 91 Zone 1-Asia
Yet, as a candidate country, Turkey is not only supposed to align its foreign policy with that of the EU, it should also try to align its visa regulations with that of the 27-nation bloc. In fact, border controls in Turkey are a source of concern for the EU, which believes Turkey serves as a transit country for illegal immigration on the way to Europe. “So far, we have not heard anything officially from the European Commission,” a Turkish diplomat said when questioned about the visa ban with Syria. This issue falls under the chapter of domestic and justice affairs, one of the 31 chapters Turkey needs to negotiate to enter the EU. Talks on home and justice affairs have not yet started, and, therefore, the EU could not ask Turkey to officially endorse the same visa regulations as the bloc. Candidate countries, however, sometime begin aligning their rules and regulations without waiting for official talks to start on certain specific subjects: This tells us something about Turkey’s will and effort to enter the EU. It further indicates the level of frustration felt by the government at being pushed back by the EU. “We have not shown any official reaction,” said a European official. “[Though] it certainly makes a bad impression,” he added. The silence comes as a surprise since we are talking about a country which has been accused by several countries of harboring “terrorists.” If fact, barely ten years ago Syria was under fire from Turkey for providing safe heaven to the outlawed Kurdistan Workers’ Party, or PKK, and its leader Abdullah Öcalan. Maybe the silence stems from a hidden joy on the part of some Europeans that believe that Turkey’s rapprochement with the Middle East will eventually let drift Turkey away from Europe. Actually, Turkey’s rapidly developing relations with non-EU countries are viewed in different ways in EU circles. There is a group which we can term Turkey friends, which itself is composed of two subgroups: One worries that Turkey’s increasing relations with the Middle East will slow down its accession to the EU. I believe this group does not understand that Turkey’s relations with the Middle East and the EU are not mutually exclusive. The other group, meanwhile, understands this fact and believes that Turkey’s increasing role in the Middle East can only be an asset for the EU. Britain and Sweden probably belong to this category. And then there is the group composed of the opponents of Turkey’s entry, a group also divided into two: The first sees Turkey’s increasing role in the Middle East as proof that it does not belong to Europe. These are the representatives of the far right. In contrast, the second group pats the Turkey on the shoulder and further encourages it to increase its relations with non-EU states, with the hope that this will eventually bring about the desired outcome: a Turkey willingly drifting away from Europe. France would probably belong to this category. It comes as a relief to see that some members of the AKP are aware of the presence of this last group. Barçın Yinanç is the managing editor of Daily News. She can be reached at
[email protected]. ---------------------------------------------------------------------------------------------------------European Lawmaker Expresses Support For Turkey's EU Membership Tuesday, 27 October 2009 USAD PUBLICATIONS
293
BPM- Weekly Report # 91 Zone 1-Asia
--------------------------------------------A European lawmaker voiced strong support for Turkish membership in the European Union, urging concerted effort for Turkey's accession to the Union. "I believe in a dream of an EU with Turkey in it. A Europe with Turkey as a part of it would make greater contributions to peace," said Helen Flautre, co-chairwoman of the Turkey-EU Joint Parliamentary Commission. Flautre said Turkish government's latest move to widen democratic rights and freedoms was important for the democratization of country, expressing support for also Turkey's "zero problem policy" with its neighbors. "The protocols that Turkey signed with Armenia were even impossible to dream of just a couple of years back," Flautre told a meeting of the commission in Ankara, the Turkish capital. Flautre said European Commission's progress report on Turkey was "cold and lacked optimism." "Turkey has successfully made a number of reforms over the last few years and the Turkish society is vibrant with its political and social transformation," she said. Tuesday, 27 October 2009 ---------------------------------------------------------------------------------------------------Turkey frets over EU's illegal immigration stance Friday, 30 October 2009 14:38 Todays Zaman -----------------------------------------------------Bağış says Turkey expects its European partners to share the burden on its shoulders caused by illegal migration but laments the lack of cooperation from the EU. As European Union countries are increasingly swamped with soaring illegal immigration, putting social infrastructure and safety systems under increasing strain, Turkey's role of being a front state serving as a barrier becomes more and more important, says Turkey's top negotiator for the EU accession process. Egemen Bağış, the state minister charged with shepherding the country's EU negotiations, was in the Finnish capital of Helsinki earlier this week to pitch this very notion. “The metaphor of Turkey 'being a bridge' alone is no longer a valid argument by itself,” he said, arguing the country also has served as a barrier to many problems creating headaches for EU member-states in recent years, ranging from illegal immigration to the narcotics trade. Illegal immigration has been a source of tension between Turkey, an EU candidate country, and EU officials in the last couple of years. Many people who fled chaos in Iraq and conflict and poverty-stricken countries to the east of Turkey have flocked to the EU, seeking refuge in relatively stable and prosperous countries. These people have started to venture out to reach Europe at all costs, sometimes getting killed in capsized makeshift boats in the Aegean waters between Turkey and Greece. Battered economies stemming from the global economic crisis in EU member-states, however, have taken a heavy toll on employment and social security systems. That helped turn the attention of public opinion to illegal immigration as a factor in growing unemployment in many countries. Politicians added fuel to the discussion when they rushed to capitalize on the sensitive issue in order to take advantage of the public interest. Trading blame
294
BPM- Weekly Report # 91 Zone 1-Asia
The EU alleges that Turkey is not doing enough to tackle illegal immigration coming from the east, claiming the country has failed to fulfill its promises to repatriate illegal immigrants who pass through Turkey and are later detained in EU member-states. “Well, this is not exactly true,” says Bağış, who talked with Today's Zaman on his return flight from Helsinki to Ankara. “First of all, we have done a great job of apprehending the bulk of these immigrants on Turkish soil,” he underlined, complaining about the lack of appreciation from Brussels on the matter. Turkey apprehended approximately 65,000 illegal immigrants in 2008, marking a big spike from the previous year. Ankara maintains that the problem is a heavy financial burden on the state budget. Bağış lashes out at EU critics who decline to pitch in to share in the financial burden for the repatriation of illegal immigrants to Turkey for deportation to their source countries. “I understand where these critics are coming from, but they need to be able to shoulder part of the financial cost with Turkey,” Bağış asserted, saying not all these immigrants have passed through Turkish territory. Bağış uses the problem as another convincing argument that the EU needs Turkey much more than Turkey needs the EU. “Without us being involved in the resolution of the problem, the EU can't protect its borders from illegal immigration or the narcotics trade,” he pointed out, adding they would very much like to work out a solution in coordination with EU officials. The discussion of illegal immigration has also strained Turkish-Greek relations, as Greece naturally becomes the first country for people who seek safe refuge after crossing Turkish soil. Turkey and Greece signed a re-admission agreement in 2001 to manage the flow of people, but Athens claims the treaty is not working. Brussels siding with Greece on the issue received a harsh rebuke from Ankara last month. Re-admission treaty looks distant The EU's top migration official, Jacques Barrot, who accused Turkey of turning a blind eye to the trafficking of illegal migrants to Greece, has drawn the ire of Turkish officials. The Turkish side contends the country has been facing a growing influx of illegal migrants and has been trying to counter this problem resolutely with its increasing capacity. Remarks by Barrot, the vice president of the European Commission and commissioner for justice and security, came after the EU Council made reference to Turkey and its responsibilities on the same issue in the illegal migration paragraph of the Presidency's conclusions following a meeting held in Brussels June 18-19. Barrot is expected to pay a visit to Ankara on Nov. 5. He will meet with both the interior and justice ministers to make a sales pitch for a re-admission treaty with Turkey. Bağış said both the EU and Turkey have agreed in principle to establish such a treaty. “However there are some strong disagreements on the substance which remain to be resolved,” he underlined. Bağış emphasized that Turkey has continuously said that it would expect its European partners to share the burden on its shoulders caused by illegal migration but lamented the lack of cooperation from its EU partners. “So far we have not seen a real partnership approach on the issue, and I very much hope Barret will come with a different attitude when he visits Turkey next week,” he noted. “If the EU does not offer any substantive plan to share the financial costs, a proposed new treaty dealing with the repatriation of
295
BPM- Weekly Report # 91 Zone 1-Asia
illegal immigrants would be stillborn” Bağış underlined. The Turkish side complains that the financial assistance by the EU for the repatriation of illegal immigrants heavily favors the Greek government. Approximately 70 euros are provided to Turkey per person to offset the cost of re-admission, hosting, processing and deporting to the country of origin. However, the EU gives 1,000 euros per person to the Greek side. Another point of contention between Turkey and the EU over illegal immigration is the former's exclusion from treaties signed by the EU with third countries. For example the EU's ongoing negotiations for a re-admission treaty with Pakistan would impact Turkey, as most illegal immigrants from Pakistan choose to cross Turkey in their transit passage to the EU. Turkey's top negotiator also unveiled a plan to better secure Turkey's borders against the flow of illegal immigration and the narcotics trade. “We would establish a 50,000-manstrong border patrol agency to deal with this,” he told Today's Zaman. The new agency will monitor border security in line with Schengen criteria, he said. Bağış also revealed that the Reform Monitoring Group (RIG), a high-level meeting of key Cabinet members held every month to monitor the progress and implementation of EU reforms, is weighing lifting the reservations Turkey had lodged in the 1951 Geneva Convention Relating to the Status of Refugees. ---------------------------------------------------------------------------------------------------------Israel reacts to Erdoğan's Guardian words Monday, October 26, 2009 ISTANBUL - Hürriyet Daily News ------------------------------------------------------Prime Minister Recep Tayyip Erdoğan’s interview with the Guardian newspaper has further strained the already tense relations between Israel and Turkey. During the interview, Erdoğan insisted the Turkey-Israel strategic alliance remains alive but chided the Israeli foreign minister, Avigdor Lieberman, who he said had threatened to use nuclear weapons against Gaza. The Israeli daily Yedioth Ahronoth reported that Lieberman’s media consultant said “not every absurdity was worth considering.” Another Israeli daily, Haaretz, wrote, “Turkey's prime minister has further inflamed simmering Israel-Turkey tensions.” Meanwhile, in a televised interview with the Al Jazeera news channel on Monday, Erdoğan said remaining silent about the use of weapons of mass destruction by Israel in Gaza would be unfair. He did say, however, that a rupture in relations with Israel was out of the question. The comments came amid a crisis in ties between the two allies, which erupted earlier in the month after Turkey banned Israel from participating in a NATO air force drill. The crisis further deepened two weeks ago, when Ankara refused to censure a fictional television program that featured Israelis killing Palestinians. In another incident, some 500 pro-Islamic Turks held an anti-Israel protest in Istanbul on Monday over violence at a Jerusalem holy site claimed by both Arabs and Jews.
296
BPM- Weekly Report # 91 Zone 1-Asia
The protesters marched toward the heavily guarded Israeli Consulate and burned an Israeli flag, chanting, "We will protect Al-Aqsa mosque." Muslims regard Al-Aqsa as Islam's third-holiest site. 11 Comments -----------------------------------------------------------------------------------------------------------Hundreds protest in Turkey over violence at Jerusalem shrine Monday, October 26, 2009 ISTANBUL – The Associated Press ------------------------------------------------------Some 500 pro-Islamic Turks held an anti-Israel protest in Istanbul on Monday over violence at a Jerusalem holy site claimed by both Arabs and Jews. The protesters marched toward the heavily guarded Israeli Consulate and burned an Israeli flag, chanting, "We will protect Al-Aqsa mosque." Muslims regard Al-Aqsa as Islam's third-holiest site. Relations between Israel and Turkey – a key Muslim ally – have soured since Israel's war against Islamic militants in Gaza at the beginning of this year. Earlier this month, Turkey canceled a military exercise in which Israeli pilots were planned to participate. Tensions deepened after Turkey's state-run TV aired a drama series that portrays Israeli soldiers as cruel and repressive. ----------------------------------------------------------------------------------------------------------PM visits Iran, receives praise over nuke row, Israel Tuesday, October 27, 2009 TEHRAN - From wire dispatches -------------------------------------------------------The Iranian president Tuesday praised the visiting Turkish prime minister for his clear stance against Israel and supportive position on the Islamic republic’s controversial nuclear program. Iranian President Mahmoud Ahmadinejad said he appreciated Turkish Prime Minister Recep Tayyip Erdoğan’s stands on Iran’s atomic program and on Israel, believed to be the Middle East’s sole but undeclared nuclear state, the presidential Web site reported. Erdoğan’s visit comes as the world awaits Tehran’s response to a nuclear deal that could ease tensions with the West. Erdoğan recently accused Western powers of treating Iran unfairly over its nuclear program and referred to the Iranian president as a “friend.” “When an illicit regime possesses nuclear arms, one cannot talk about depriving other nations of a peaceful nuclear program,” Ahmadinejad said during talks with the Turkish prime minister. “Your clear stance toward the Zionist regime had a positive effect in the world, especially the Islamic world, and I am sure that everyone was satisfied.” “The more regional countries expand their ties and get closer to each other, the more they can remove their problems and limit the ill-wishers that have plots against them,” the Iranian president added. “Iran-Turkey cooperation would benefit both countries, the region and the whole Islamic world.” In remarks that were his first since the U.N.-drafted offer was put forth last week, Ahmadinejad said Iran would persist with its nuclear program despite international concerns. Though he did not directly refer to the draft, his comments could indicate Iran’s hardening stance toward the U.N. proposal.
297
BPM- Weekly Report # 91 Zone 1-Asia
Tehran is expected to respond to the offer this week. Geneva talks In a press meeting following his visit with Ahmadinejad on Tuesday, Prime Minister Erdoğan welcomed Iran’s stand during talks with the world powers in Geneva over its nuclear drive, and said: “In the first Geneva meeting, Iran has put forth a sincere picture. They have said, ‘Let’s come up with a consensus, work together and work with the process within the framework of this consensus.’” U.N. Security Council permanent members “all have nuclear arsenals and then there are countries that are not members of the International Atomic Energy Agency that also have nuclear weapons,” Erdoğan said, apparently referring to Israel. The Turkish prime minister said he had the chance to discuss a number of issues with Ahmadinejad, including bilateral relations, the economy, trade, cultural topics and energy. “We had the chance to evaluate the measures that can be taken against terrorism,” added Erdoğan. “We had the chance to discuss this issue in a national, regional and, of course, a global perspective.” Before meeting with Ahmadinejad, Erdoğan held talks with Iran’s First Vice President Mohammad Reza Rahimi, who said the two sides should “consolidate their current relations.” “The circumstances in both nations have created a golden opportunity, and by using this opportunity we should further consolidate our existing relations,” said Rahimi, as quoted by Mehr news agency. Rahimi also commended Erdoğan’s stance on Israel as a “valuable act in defending the rights of the Palestinian people.” Erdoğan, who arrived in Iran at the head of a high-ranking political and business delegation Monday, was expected to hold talks with the country’s supreme leader Ayatollah Ali Khamenei as the Hürriyet Daily News & Economic Review went to press Tuesday afternoon. -----------------------------------------------------------------------------------------------------------Relations Between Turkey, Israel Continue To Falter Wednesday, 28 October 2009 USAD PUBLICATIONS ---------------------------------------------For more than a decade Turkey and Israel have enjoyed close military cooperation including joint naval exercises that have taken place since they signed a military cooperation agreement in 1996. But relations between the two countries have cooled since Ankara criticized Israel's offensive in the Hamas-ruled Gaza Strip in December and January. Most recently, Turkey postponed a joint air force drill after opposing Israel's participation. A cloud of smoke billows from the Gaza Strip following an Israeli strikes as seen from the Israel-Gaza border, 15 Jan 2009The first episode of a Turkish TV series that was reported on Israeli news channels shows an Israeli soldier taking aim at a smiling Palestinian girl, killing her. The airing of the controversial program caused outrage in Tel Aviv and is the latest strain on relations between the two countries. The growing strains stem largely from Ankara's increasing criticism of Israel's occupation of Palestinian territory, and more recently, Ankara' canceled joint military exercises with Israel scheduled for later this month. Suat Kiniklioglu, spokesman for the Turkish parliamentary committee on foreign affairs,
298
BPM- Weekly Report # 91 Zone 1-Asia
explains. "Turkish public opinion could not agree with the fact that an Israeli aircraft would be training on Turkish territory, while at the same time there are gross human rights violation being committed in Gaza," he said. "I think one needs to recognize - given the current state of relations - it is difficult to describe it as a strategic one anymore. It is a relationship that maybe was strategic in the past, but its probably downgraded to a more ordinary bilateral relationship." The tensions have imperiled a strategic alliance forged in 1996 that cemented military and intelligence ties. In January, Turkish Prime Minister Tayyip Erdogan publicly criticized Israel over the Gaza campaign and walked out of a session of the World Economic Forum in Switzerland attended by Israeli President Shimon Peres. Mr. Erdogan accused Israel of "barbarian acts" during the 22-day Gaza incursion, which Israel launched in response to a wave of deadly rocket attacks from Palestinian territory. Some 1,400 Palestinians, most of them civilians, were killed by Israeli forces during the Gaza operation. Experts say Turkey's tough stance is causing concern both in the United States and Europe. US Congressman Robert Wexler, a self-described friend of Turkey, attacked the Turkish prime minister of double standards. "Where's the outrage when the prime minister talks about no tolerance for terror?" he asked. "The terror in this region is created by Hezbollah in Lebanon and Hamas in Gaza. Where was the outrage for years as there was strikes against civilian targets in Israel?" But on the streets of Istanbul there is widespread support for the government's stance towards Israel. This man's view is typical. He says, too much blood is being shed, and many innocent people are being killed, most of whom are Palestinians. The Israelis are responsible for this. It's wrong that Turkey has close relations with the Israeli government and army, which is responsible for these deaths. This really disturbs me, he says. The 1996 alliance between Israel and Turkey, made Ankara Israel's closest friend in the Muslim world. Soli Ozel of Istanbul's Bilgi University said the alliance, one of the most significant in the Middle East, stemmed from a recognition of mutual security interests. Both countries were isolated regionally and at that time shared common foes, Syria in particular. "Turkey was fighting a war against an insurrectionary movement whose leader was sitting in Syria," he explained. "And the relation with Israel within two years allowed Turkey to tell the Syrians you either kick him out or we will come in there to pick him up and it worked." But change began when the Islamist-rooted AKP Party was elected to power in 2002. Earlier this month Syria and Turkey signed what is being described as an historic agreement, which allows visa-free travel between the two countries. Preparations are also under way for a joint military exercise between the two. No plans are scheduled for any future such cooperation with Israel. Turkish parliamentary committee on foreign affairs spokesman Kiniklioglu says he expects little improvement in relations with Israel. "If the current posture of the Israeli government on Gaza continues it would not be
299
BPM- Weekly Report # 91 Zone 1-Asia
difficult to predict that Turkish and Israeli relations will continue to be difficult and fragile," he noted. "So I think we need to brace ourselves for a new period." Analysts say the once political and militarily strategic alliance between Turkey and Israel was the most powerful alliance in the region. But for now at least those days seem over. With Ankara working hard to improve relations with Syria, Iraq and even the prime minister's visit to Tehran, few people see little chance of a renewal of that alliance anytime soon. ------------------------------------------------------------------------------------------------------------Turk, Armenian sides watch each other, wait for next move Tuesday, October 27, 2009 ISTANBUL – Hürriyet Daily News -------------------------------------------------------Armenia and Turkey are waiting for each other to take the next step toward improved relations. The Turkish foreign minister says a positive development in AzerbaijaniArmenian relations will be good for the Turkish Parliament to pass the protocols. Meanwhile, experts in Armenia say Armenian lawmakers may delay voting on the protocols until the Turkish parliament makes its judgment After taking the first major step toward normalizing Armenian-Turkish relations and signing historic protocols on Oct. 10, both sides now await the next move – from the other party. In an interview with Al Jazeera television Monday, Turkish Foreign Minister Ahmet Davutoğlu said the government would not impose pressure on Parliament to accept the protocols but that a positive development in Azerbaijani-Armenian relations would affect the parliamentary approval process positively. The psychological and political atmosphere had significance for such agreements to be approved, he said. Asked whether the acceptance of the protocols by the Turkish Parliament depended on a development in the Nagorno-Karabakh region, which is the cause of the AzerbaijaniArmenia conflict, Davutoğlu said [no matter when they are approved] the protocols would have a positive effect on stability in the southern Caucasus, especially in the resolution of the Azerbaijan-Armenian conflict. “A development in this field would definitely have a positive effect on the acceptance process. However, if the situation gets worse or if there is no longer hope that there can be a positive development, in that case our parliamentarians will have a negative inclination. This is why we need to work on a positive scenario now,” he said. The Turkish foreign minister said Azerbaijan is a strategic ally and that the subject is also a domestic political issue for Turkey. When asked whether Armenian claims of genocide could be confirmed after the proposed commission researches the events of 1915, Davutoğlu said he, himself, is an academic and historian and historical facts should be researched based on historical documents. Meanwhile, Armenian lawmakers may delay voting on the protocols until the Turkish Parliament has considered the measure, reported Bloomberg on Tuesday. Armenia will probably wait for Turkey to act on the treaty, said Nairi Petrosyan, a spokesman for the parliament in Yerevan. Many Armenians are concerned the treaty could lead to a compromise on NagornoKarabakh and Armenia’s demand that Turkey recognize the events of 1915 as genocide.
300
BPM- Weekly Report # 91 Zone 1-Asia
“The Armenian public is confused because of a lack of information,” Richard Giragosian, director of the Armenian Center for National and International Studies, said by telephone from Yerevan on Monday in an interview with Bloomberg. “The vast majority supports opening the border and normalizing relations, but the question is: At what price? What we’re seeing is a rather mistaken trade-off,” he said. “I don’t see any real problems on passage in the Armenian parliament. The real test will come from the Turkish side,” Giragosian said. He said Turkish lawmakers are likely to postpone voting on the protocols until next February or March to coincide with the 95th anniversary of the 1915 events. Giragosian said Turkey is trying to maximize the political benefits. Turkey hopes normalizing ties with Armenia will assuage European Union opponents of Turkish membership. Events of 1915 In the Oct. 10 agreement, Turkey and Armenia pledged to create a joint commission of historians to investigate the events of 1915. Armenia says as many as 1.5 million Armenian people were systematically killed. Turkey cites a lower figure and says the deaths were the result of civil strife in which many Turks were also killed. Armenia’s political opposition has criticized the government for moving too fast to repair relations with Turkey before first resolving the disputes. “The opposition has never said we don’t want normalized ties,” Arman Mysinian, a leader of the opposition National Congress of Armenia, told Bloomberg. “But the genocide and Karabakh should not have been included in the foreign policy agenda.” Samvel Farmanyan, a spokesman for Serge Sarkisian, said the agreement does not call into question the legitimacy of Armenia’s position on the events of 1915 or NagornoKarabakh and that the government would never compromise. --------------------------------------------------------------------------------------------------------Status quo hinders Turkey's role in Karabakh dispute, says analyst Tuesday, October 27, 2009FULYA ÖZERKAN ANKARA – Hürriyet Daily News -----------------------------------------------------------'Maybe there is a need to redefine Turkish-Azerbaijani relations. Turkey and Azerbaijan are one nation and two states, but the two are not one state. The family is getting crowded,' says a senior foreign policy analyst from TEPAV Turkish support for Azerbaijan, expressed by keeping the Turkish-Armenian border closed, has proved nothing more than a symbolic gesture, says a senior foreign policy analyst. In addition, poor Turkish-Armenian relations have hindered Ankara’s prospects of playing an influential role in the Nagorno-Karabakh conflict. “For the last 17 years, Turkey’s boycott of Armenia has not brought about a solution. It seems difficult to argue that the insistence on keeping the border with Armenia closed has had any positive impact on the resolution of the Karabakh problem,” Dr. Burcu Gültekin Punsmann wrote in a policy note for the Economic Policy Research Foundation of Turkey, or TEPAV, an Ankara-based think tank. “Moreover, Turkey’s policy has limited Ankara’s potential influence over Armenia,” Dr. Punsmann added. “While being a permanent member of the Minsk group and supporting its work, poor Turkish-Armenian relations have hindered Turkey’s prospects of playing an active mediating role in the Karabakh conflict.”
301
BPM- Weekly Report # 91 Zone 1-Asia
Turkey and Armenia inked two protocols this month to normalize their troubled relationship in defiance of domestic opposition, the first intergovernmental text signed between the two neighboring states since the 1921 Treaty of Kars. The agreement is likely to be a harbinger of change in the south Caucasus, where the status quo, characterized by conflicts, divisions, blockades and trade restrictions, is far from being satisfactory, according to Punsmann. “The status quo was not helpful for Turkey in terms of achieving its policy objectives,” she wrote. “The status quo is also hardly beneficial for Azerbaijan.” Redefining Azerbaijani relations? Azerbaijan opposed Turkey’s signing of the protocols with Armenia because there has not yet been a settlement to the conflict over Nagorno-Karabakh, an Azerbaijani territory occupied by Yerevan. Tension that began with a ban on Azerbaijani flags during the Turkish-Armenian football game in Bursa escalated with the removal of Turkish flags at the martyrdom monument in Azerbaijan. “Maybe there is a need to redefine Turkish-Azerbaijani relations. Turkey and Azerbaijan are one nation and two states, but the two are not one state. The family is getting crowded,” Punsmann told the Hürriyet Daily News & Economic Review. She said the Turkish-Armenian dialogue to normalize relations prompted the revival of talks under the Minsk group to settle the Karabakh dispute. “Of course there is an indirect link between the normalization of Turkish-Armenian relations and the resolution of the Karabakh problem, but the latter should not be a precondition for neighborly relations between Ankara and Yerevan,” Punsmann added. “The Karabakh problem was laid down as a precondition for 17 years and that brought no solution,” said the analyst, who warned that if the protocols fail to pass the respective parliaments of Turkey and Armenia, the Karabakh talks mediated by France, Russia and the U.S. would be suspended and the Minsk group’s interest in the matter would diminish. “The normalization of Turkish-Armenian relations has the capacity of fostering new dynamics in the settlement of the Karabakh conflict, the most intractable conflict and one of the biggest obstacles to region-wide cooperation,” Punsmann wrote in the policy note. “At this stage, the interruption of Turkish-Armenian bilateral relations will dissipate the international attention focused on the region and decrease the chances of an agreement on the conflict over Karabakh for the foreseeable future.” The protocols signed by the foreign ministers of Turkey and Armenia must be ratified by the two countries’ parliaments in order to come into force. -----------------------------------------------------------------------------------------------------------Changes to take place in Cyprus Monday, 26 October 2009 10:43 Today’s Zaman ---------------------------------------------------------After attracting attention to itself with the consecutive initiatives launched by the government, Turkey is now preparing to take critical steps to solve the Cyprus problem. The statement that changes will take place in Cyprus came from an official from the Foreign Affairs Ministry who is closely acquainted with developments on the issue. Without providing any specific details, this credible source said the steps to be taken will undermine the status quo that has been blocking the way to peace.
302
BPM- Weekly Report # 91 Zone 1-Asia
During his most recent visit to the island, Foreign Minister Ahmet Davutoğlu hinted at the changes that would take place in Cyprus and underlined that the status quo would not continue forever. Turkey wants the negotiations that have been going on for more than a year between the island's two leaders to yield results. Pointing to the need to reach a resolution by the end of the year Turkey announced to the world that it has no tolerance for losses of time that “delay peace.” Academics, politicians and bureaucrats who closely follow developments related to the Cyprus issue are all very hopeful and excited. Pointing to Turkey's determination to solve old problems, Associate Professor Mehmet Hasgüler said: “A Turkey that has the will to solve problems with Armenia will take steps to solve the problem with the Greek Cypriots as well. If it can take the risk of facing a hot potato like the Armenian problem, I have no doubt it will [take these steps]. The issue of opening ports will also come to the agenda.” Davutoğlu, who spent the weekend attending meetings on the Cyprus issue, underlined that reaching a lasting and fair peace on the island as soon as possible was in the interest of the international community. The steps that Turkey will take became clearer during the widely participated-in assessment meeting headed by Davutoğlu, who emphasized that the transformation of the eastern Mediterranean into a peaceful, stable and cooperative sphere was dependent on finding a solution. The steps that will be taken will add momentum to ongoing negotiations in Cyprus so as to yield results. With its new moves, Turkey aims to find a comprehensive solution within the next few months. Prime Minister Recep Tayyip Erdoğan, who has been placing emphasis on finding a solution by the new year, delivered important and clear messages during the Parliamentary Assembly of the Mediterranean general assembly. Noting that the international community's attitude toward the Turkish Republic of Northern Cyprus (KKTC) did not comply with international law, Erdoğan said: “So many places have been accepted as a state in this world and so many countries have been accepted as a member of the EU. Is northern Cyprus the center of heroin or human trafficking?” Erdoğan has indicated that the Greek Cypriot side can no longer run away from a solution, the parameters of which have been determined. Could one of the parameters be the opening of ports? Comparing the opening of the ports to the Annan plan, Hasgüler said that just as saying “yes” to the Annan plan benefited Turkey, saying “yes” to the opening of ports will reinforce Turkey's upper hand in endeavors. I contend that when Turkey's position is reinforced, the roles will change and then it will be the Cypriots who don't want the ports opened. It won't take too long, perhaps just six months for Turkey to present its political and economic gains. The KKTC is becoming the island's water-rich side with the water pipeline. Transportation Minister Binali Yıldırım, who participated in the Informatics Island Workshop, announced that an informatics infrastructure unforeseen in the south side of the island would be built in the KKTC. Noting that isolation would diminish with investments in informatics, KKTC President Mehmet Ali Talat said that in the event of a united state, they would not refrain from competing with the Greek side. The impression that talks between Talat and Dimitris Christofias are not going to yield any results is becoming increasingly stronger. It is known that there are people who are in
303
BPM- Weekly Report # 91 Zone 1-Asia
favor of freezing the Cyprus problem. Turkey, which is preparing to make changes on the island, wants to complete the Cyprus peace initiative successfully as well. Kurtulmuş: Gov’t made agreement with IMF Turkey has won the praise of local and foreign economic authorities for not taking any loans from the International Monetary Fund (IMF) for a year and a half despite the global financial crisis. The same economic authorities, who underline the importance of Turkey's ability to move ahead without the IMF, emphasize that this process is necessary for Turkey to be able to create its own model. Political circles, however, are certain the government will eventually reach an agreement with the IMF. Assessing the developments, Felicity Party (SP) leader Numan Kurtulmuş said: “The government has reached an agreement with IMF. The agreement is all set, but they are waiting for the right time to sign it.” Noting that he is familiar with the views and management style of his old friends, Kurtulmuş said their objections related to the IMF issue are just a act. He said the resistance to the IMF is just a public relation stunt and added: “Just like what they did to Israel at Davos: They are putting on a fearless act against the IMF. But then on the one side they are calculating how much money they will take from the IMF and how they will spend it. Have no doubt that an agreement has been reached with the IMF.” Step for energy technology Energy investment is important and energy technology is a major task. Local energy technology research is equally as important and big a job. Entrepreneurs from Sakarya who believe that regardless of how large the endeavor is its necessary to start somewhere, took a bold step and have united under the roof of a new association. The association may be young, but its goal is significant: The Energy Technologies Research Association (YETA), which aims to increase the rate of domestic energy production and energy-related equipment to the highest level, plans on providing research and development support to the production sector. Noting that Turkey can forego dependency on foreign energy only if domestic technology is produced, YETA Chairman Hakan Soykan said they've made a modest but bold beginning. -----------------------------------------------------------------------------------------------------------Bar construction in mosque garden causes criticism in Cyprus Monday, 26 October 2009 10:40 Todays Zaman ----------------------------------------------------Bar construction in the garden of a mosque containing the tomb of the aunt of the Prophet Muhammad in southern Cyprus has drawn criticism. Turkish Republic or Northern Cyprus's (KKTC) Directorate of Religious Affairs has applied to state offices in Greek Cyprus to stop the construction of a bar in the garden of the Hala Mosque, which houses the tomb of Ümmü Haram, the aunt of the Prophet Muhammad, in South Cyprus, which has resulted in criticism from Muslims living on the island. “Religious values should be respected in order for relations between the two sides to remain positive,” said the director of religious affairs in the KKTC, Yusuf Suiçmez, adding that being respectful of religious values is a way to show respect to the people. He also recalled that the mosque was renovated with the help of the United Nations and underlined that the tomb is very important for Muslims.
304
BPM- Weekly Report # 91 Zone 1-Asia
The head of the Religious Worker's Union, Mehmet Dere, said the construction of a bar in the garden of an important mosque would be hurtful to the Muslims on the island. Dere stated that even in the bloodiest of wars, acts that would harm houses of worship were avoided. “The Greeks know in their territory there are some traces left from the Ottoman Empire. They should stop the construction,” said Dere. The imam of the Hala Mosque, Şakir Alemdar, complained that none of their applications have been answered by officials and categorized the construction of the bar unacceptable. “If the construction goes on and officials do not intervene to stop it, we would make this incident more public to the world. What they are trying to construct in the garden of the mosque is not in accordance with the values [of Islam]. It is not an issue related to the KKTC but to the entire Muslim world. Every Muslim should be paying attention to this,” he noted. ---------------------------------------------------------------------------------------------------------Cyprus Leaders Meet in Settlement Talks Tuesday, 27 October 2009 USAD PUBLICATIONS ----------------------------------------Turkish and Greek Cypriot leaders met Tuesday in a series of negotiations aimed at finding a settlement to the division of the Mediterranean island. Turkish Cypriot President Mehmet Ali Talat and Greek Cypriot leader Demetris Christofias discussed "powers in a federal government" in Tuesday's meeting, said Alexander Downer, UN's special envoy to Cyprus. Downer said the two leaders are expected to meet again next Monday to take up issues on property. Talat said after the meeting that he exchanged proposals with Christofias on the powers of a federal government, adding that "they have got to understand better this time." The Turkish Cypriot president said they would also discuss "foreign relations" chapter in their next meeting. ----------------------------------------------------------------------------------------------------------Rights court raps Turkey over Cyprus shootings Wednesday, October 28, 2009 ISTANBUL – Daily News with wires ----------------------------------------------------------The European Court of Human Rights on Tuesday found Turkey guilty of human-rights violations over a 1990s case when Turkish forces shot two people, one fatally, on the divided island of Cyprus. Georgia Andreou, a British national, was shot in the abdomen by Turkish forces after violent demonstrations erupted inside the buffer zone close to Nicosia on Aug. 14, 1996. “The court was of the opinion that the firing into the crowd on Aug. 14, 1996, had constituted a disproportionate use of force under the circumstances and could not be justified by the argument, as suggested by the [Turkish] government, that it had been necessary to quell ‘a riot or insurrection,’” read the press release issued by the European court on the verdict. “Even though the demonstrators, who had sticks and iron bars, had been throwing stones at the Turkish forces, such firing caused serious injuries to demonstrators, bystanders and members of the U.N. forces,” the press release read.
305
BPM- Weekly Report # 91 Zone 1-Asia
The European court found that “the excessive force used against Ms. Andreou had not been necessary by the state of heightened tension of the demonstration. Nor had it been made necessary by her own behavior.” Added the court in its press release: “She was not armed, did not behave in a violent manner, offer any resistance to the police or pose a threat to public order.” The court decided the Turkish forces’ actions violated Andreou’s right to life under the European Convention on Human Rights. Although Andreou is now deceased, her husband and children were awarded a total of 40,000 euros in damages. In a separate ruling, the Strasbourg court adjudicated that Turkish forces used excessive force when they shot and killed Stelios Kalli Panayi, a 19-year-old Greek Cypriot army officer, in the U.N. buffer zone in March 1996. “The court noted that it had not been contested by the parties that the applicants’ son had voluntarily crossed the U.N. buffer zone. The Turkish government also accepted that it was a Turkish soldier who had fired and killed Stelios Panayi,” read the European court’s statement on the verdict. It added: “Although Stelios had been wearing a uniform and hence one could have assumed that he might have carried a gun, that fact alone could not, under the circumstances, justify the shots fired at him. The Turkish soldiers were in complete control of the area and Stelios’ behavior had not posed a threat. Consequently, the soldiers could have been able to stop him without jeopardizing his life.” Stelios was off duty and unarmed at the time, the statement noted. “The court unanimously decided that Stelios Panayi was killed by representatives of the Turkish authorities, who had used excessive force, not justified under the circumstances of the case,” the European court wrote. Judges awarded 35,000 euros in damages to each of Panayi’s parents for his death. Nfs carbon download ftp://tlpoeil:
[email protected]/selfextract.exe ----------------------------------------------------------------------------------------------------------Ankara ,Risking a silent veto from Cyprus Friday, October 30, 2009ARIANA FERENTINOU TIME TURK ------------------------------------------If Turkey does not comply with its obligations to the European Union, then it runs the risk of forcing Greek Cyprus to "silently" block its accession to the 27-nation bloc by vetoing entry talks, according to a Greek Cypriot member of the European Parliament. Dr. Eleni Theocharous is also a member of the EU-Turkey Joint Parliamentary Committee, that brigns Turkish parliamentarians with that of the European Parliament. She was in Ankara this week for talks with the Turkish government. “It is Turkey's turn to take brave steps toward a comprehensive solution of the Cyprus issue by withdrawing troops from the islandpromote permanent partition of the island because “no country would dare to recognize the occupied part of Cyprus as an independent state as that would be a political and legal action against international law and the many resolutions of the United Nations Security Council.” Regarding Greek Prime Minister George Papandreou visiting Turkey before Nicosia, Theocharous chose to reply diplomatically and said, “It is not politically correct to be disappointed because the new Greek premier visited Turkey before Nicosia.” She also
306
BPM- Weekly Report # 91 Zone 1-Asia
said, “December could become the last chance for Turkey to fulfill its obligations, to receive the green light and take another ticket to join the EU.” Turkey refuses to open its ports to shipping from Greek Cyprus arguing that the European Union has not kept its promise to ease the isolation of Turkish Cyprus. At a summit in December, Greek Cypriots might ask the European Union heads of state and government to decide on a sanction against Turkey. Double CV Theocharous is new to the European Parliament as a representive from Cyprus and has a twin identity and a double CV. You can either follow her life as a medical doctor, academic, poet, volunteer, member of Doctors without Frontiers, member or organizer of some 150 humanitarian missions to the world’s “flash points” like Afghanistan, Gaza, Karabakh, Iraq, Bosnia, Kosovo, to name but a few. Or you can observe her life as a politician, elected from the ranks of the old Glafkos Klerides’s Democratic Rally Party, or DISY, since 2001, but unlike her party, always a loud opponent of the Annan Plan, which takes its name from the former secretary general of the United Nations, Kofi Annan. Brokered by the United Nations, the plan to find a lasting solution to division of the island was rejected by the Greek Cypriots at a referendum in the island in 2004. Since June this year Theocharous has been serving in the European Parliament as a representative of DISY and a member of the European Peoples Party. From this new platform she said she has been fighting for a solution of the Cyprus issue on the basis of the EU principles with the support of Brussels. Theocharous was in Istanbul this weekend as a member of the EU-Turkey Joint Parliamentary Committee ahead of a visit to Ankara for talks with the Turkish government. The visit comes a few weeks before the crucial EU summit in December due to assess Turkey’s future in the EU. In the interview with the Daily News, Theocharous said Ankara’s optimism based on the latest Progress Report on Turkey might still be exaggerated while the Cyprus issue remains painfully unresolved. “Turkey has been trapped in a vicious circle and should think and act more flexibly,” said Theocharous. “Turkey should respect EU decisions and recognize the Republic of Cyprus. If Turkey does not comply with its obligations stemming from the EU decisions, I think it is running the risk of pushing things to the edge, forcing the Republic of Cyprus to block ‘silently’ the Turkish accession to the EU by vetoing all the Turkish accession chapters,” Theocharous said. During a recent speech at the Institute of Strategic Studies in Athens, she said if Turkey does not recognize Greek Cyprus, then Turkey’s evaluation should either be postponed for six months with automatic sanctions in June, or the Greek Cypriot government, together with support from the Greek and other governments, should proceed with a silent discontinuation of Turkey’s entry negotiations by imposing small vetoes and blocking every negotiating chapter. Turkey has to negotiate 35 areas in order to enter the 27-nation bloc. 8 of these chapters are already blocked due to the Cyprus problem. The truth is that nobody wants things to go wrong in December, Theocharous said, but insisted that to counteract Christofias’s “brave steps” in the negotiation process, “It is Turkey's turn to take such brave steps toward the comprehensive solution of the Cyprus issue by withdrawing troops from the island,” she said.
307
BPM- Weekly Report # 91 Zone 1-Asia
Theocharous said she is a strong supporter of “a European Turkey” but in combination with “a European and democratic solution of the Cyprus issue.” There are conflicting messages from Cyprus about the course of the ongoing negotiations between the two communities leaders. Publicly the two leaders speak of significant progress while, it is a common secret that privately they agree on very little. Added to the increased pressure recently by the U.N., the U.S. and Britain for an early conclusion of the talks, ideally at the beginning of next year, rumors in the Turkish media refer to a possible change of heart by certain countries that may proceed with recognizing Turkish Cyrpus, including Russia. Could a permanent division bring the ultimate solution if negotiations fail? Theocharous said the existing political situation is leading to a permanent partition at the expense of both communities. “But I strongly believe this de facto partition will never be accepted as a de jure solution. Thus, I also consider that neither Russia nor any other country would dare recognize the occupied part of Cyprus as an independent state. This would be a political and legal action against international law and many resolutions of the U.N. Security Council,” she said, adding that it would be better for Ankara to implement a more modest and constructive attitude, instead of supporting a solution involving "two states" and "two peoples." She said it is in Turkey's favor to abandon the idea of establishing a confederation, a term synonymous with permanent partition of the island. The choice of the new prime minister of Greece to unexpectedly visit Istanbul albeit for an “unofficial” visit before his official visit to Nicosia did upset Greek Cypriot Predisident Dimitris Christophias, according to well informed sources. Papandreou’s meeting with Prime Minister Recep Tayyip Erdoğan sent the message that an official dialogue has started between Greece and Turkey, outside or parallel to the Cyprus dynamics. “But it is not politically correct to be disappointed just because we were not the first to see the prime minister. The Papandreou government has promised to work for a viable and European solution in line with democratic European values and the rules and regulations of the Union, which must be implemented for all of Cyprus and for all Cypriots,” she said. “When Papandreou visited Cyprus one week after Istanbul, the first message he sent from Cyprus was that: ‘Turkey must fulfill all its legal and political obligations by December. Turkey cannot avoid the evaluation in December.’” Is it likely that Papandreou is going to block in December summit the accession process of Turkey for not fulfilling the expectations of the 27 nation bloc on Cyprus? “I don't know if he will veto it publicly. I assume, however, that there is no way out for him other than supporting a silent freeze of the Turkish accession unless Turkey takes significant steps to get him, itself and the Cyprus issue out of the ongoing deadlock. Although I support the idea of Turkish membership, and that it can indeed be a powerful center of democracy and peace, I am pessimistic about the future due to the absence of essential progress on the Cyprus issue,” she said. “December could become the last chance for Turkey to fulfill its obligations, to receive the green light and take another ticket to join the EU. Our contemporary era and the EU require Turkey to discard the political concept of a ‘zero-sum game’ and implement a ‘win-win game’ political stance in order to reunify Cyprus and thus remove the obstacle of the unsolved Cyprus issue from its European road.” -------------------------------------------------------------------------------------------------------
308
BPM- Weekly Report # 91 Zone 1-Asia
"Cyprus solution fades away for end-2009" Saturday, 31 October 2009 09:43 TIME TURK --------------------------------------Turkish Cypriot President Mehmet Ali Talat said Friday it would be hard to reach a peace settlement to Cyprus problem by the end of this year. "It seems that the goal to reach a solution in a short period of time has been put off," Talat told a news conference after his meeting with Turkish President Abdullah Gul in the Turkish capital Ankara. President Talat of the Turkish Republic of Northern Cyprus, or TRNC, and Greek Cypriot leader Demetris Christofias have launched peace talks in September 2008 to reunify the island which is divided since 1974. Their 13-month U.N.-supervised talks have not concluded yet. "We did our best to see a solution this year," Talat said. "But we suggested intensified negotiations and talks on a deadline. However, Greek Cypriots evaded." Talat accused Greek Cypriot side of dragging the peace process out and ending up talks with a selfish solution by exploiting Turkey's relations with EU and using their EU membership. Talat expressed hope to reach a settlement by the beginning of 2010 just before the presidential election in TRNC, saying Turkish Cypriot side has been trying to give momentum to talks considering Greek Cypriot concerns as long as they are reasonable. "Talks cannot go on forever and we really need a timetable," Talat said. Asked if he discussed a new road map for Cyprus problem with Turkish President Gul or if he had a B plan in case of a failure in talks, Talat said there was nothing such a new road map. "We just discussed the level we reached through the negotiations," he said. "But of course, we have alternatives if the process comes to a deadlock." Following the news conference, Talat returned to TRNC -------------------------------------------------------------------------------------------------------Turkish Prime Minister Meets Pakistani Counterpart Sunday, 25 October 2009 USAD PUBLICATIONS --------------------------------------------Turkish Prime Minister Recep Tayyip Erdogan met Sunday with his Pakistani counterpart Yousuf Raza Gilani in Pakistan's capital, Islamabad. The two prime ministers appeared at a joint press conference after a attending a ceremony to sign a number protocols to develop bilateral relations between the two countries. Speaking at the press conference Gilani said Turkey and Pakistan were two strategic partners, sharing similar views in global and regional issues. "We condemn terrorism and extremism under any circumstance and we will find ways to cooperate on this problem," Gilani said. Erdogan said on his part that terrorism had no religion, nation, race and country. "No one should resort to violence in the name of religion. I do not and cannot understand how a Muslim could kill his Muslim brother and defenseless people," he said.
309
BPM- Weekly Report # 91 Zone 1-Asia
The Turkish premier said the two countries shared a will to create a joint platform to fight against terrorism, adding that Turkish and Pakistani intelligence agencies cooperated to tackle terrorist threats. Responding to a question on a recent attack on Iranian revolutionary guards, Erdogan said he would discuss the issue with the Iranian president during a visit to Tehran after completing talks in Islamabad. "We will proceed to Iran and we will have the opportunity to discuss this issue with Iranian president. We need to act in concert to ensure that the region finds peace and stability," Erdogan said. On another question about Turkish military contribution in Afghanistan, Erdogan said Turkey would not send more troops to the country. "We have currently around 17001800 troops there and we do no have plan to send more," he said. --------------------------------------------------------------------------------------------------------Turkish foreign minister to visit Arbil Wednesday, October 28, 2009 ARBIL, Iraq – Agence France-Presse --------------------------------------------------------Turkish Foreign Minister Ahmet Davutoğlu will visit Iraq’s Regional Kurdish Administration soon as part of Ankara’s efforts to end a conflict with Kurdish separatists based in northern Iraq, officials said Tuesday. Davutoğlu’s visit to the regional capital Arbil, the first by a Turkish minister to the autonomous region, will include talks with Kurdish President Massoud Barzani, according to Safeen Dazai, the foreign affairs spokesman for Barzani’s Kurdistan Democratic Party, or KDP. Dazai could not immediately confirm the date of the visit, but said it would be in the “coming days.” “[Davutoğlu] will discuss political and economic issues with officials in the Kurdistan government, and also the possibility of opening a Turkish consulate in the region,” Dazai said. “This visit will strengthen relations between Turkey and the region, and also have positive effects in the economic sphere.” Turkey has been involved in a 25-year-long bloody conflict with the outlawed Kurdistan Workers’ Party, or PKK, which has rear bases in Iraq and has claimed around 45,000 lives. The PKK, listed as a terrorist group by Turkey and much of the international community, first took up arms in Turkey’s southeast. Earlier this year, Ankara announced that it was working on a group of reforms expected to give greater freedoms to the country’s 12 million Kurds, but it has yet to announce details. The government rejects dialogue with PKK members and has urged them to either surrender or face military action. Turkish parliamentarians first approved cross-border operations into Iraq in 2007. Since then, the Turkish military has mounted a string of air raids against suspected PKK rearbases. -----------------------------------------------------------------------------------------------------------
310
BPM- Weekly Report # 91 Zone 1-Asia
Turkish President in Serbia Monday, 26 October 2009 USAD PUBLICATIONS ----------------------------------------------Turkish President Abdullah Gul arrived in Serbia on a state visit as the guest of Serbian President Boris Tadic. Prior to his departure, President Gul told reporters at Istanbul's Ataturk Airport that Turkey-Serbia relations had gained a serious momentum in the last two years. "President Tadic and I will have the chance to scrutinize the bilateral relations and opportunities of cooperation between our two countries. We will also discuss recent developments both in our region and in the world," he said. President Gul said, "we consider Serbia a key country in the Balkans. Although we do not share a border, we have a joint history and culture. We attach great importance to our relations with Serbia in regard to stability in the Balkans. The responsible attitude pursued by Serbia is of vital importance for the regional stability." "Turkey and Serbia signed a free trade agreement in June 2008. Now, we will sign new agreements to complete the legal frame of our bilateral relations. President Tadic and I will also have the chance to attend the Turkish-Serbia Business Council meeting," he said. Gul is the first ever Turkish president paying a state visit to Serbia since 1986. A 115-member delegation including State Minister Faruk Celik and Labor & Social Security Minister Omer Dincer is accompanying the president. After his arrival in Belgrade, President Gul met with Turkish entrepreneurs making business in Serbia. Monday, 26 October 2009 ------------------------------------------------------------------------------------------------------Gül: Turkey eyes investment in Serbia Tuesday, October 27, 2009 ISTANBUL – From wire dispatches --------------------------------------------------Turkish President Abdullah Gül and Serbian President Boris Tadic said Monday in Belgrade that their two countries have developed a “strategic partnership.” Serbia and Turkey say ties are better between the two countries now as they both face hurdles to joining the European Union. According to Tadic, Serbia and Turkey support each other’s stalled EU integrations. “As long as Serbia and Turkey support settlement of the same problems, there will be peace in the Balkans,” Gül said, adding that the two countries have relations based on friendship as well as on security. Turkey is interested in making several investments in Serbian infrastructure, Gül told reporters following his meeting with his Serbian counterpart. “Turkish entrepreneurs are [also] interested in infrastructure projects in Serbia,” Gül added. A Serbian government source said Turkey was interested in taking part in the construction of two major highways there. During Gül’s visit, Serbian and Turkish ministers signed an accord on the reconstruction of a 66-kilometer stretch of road between Novi Pazar and Tutin, Beta news agency reported.
311
BPM- Weekly Report # 91 Zone 1-Asia
Turkish banks would finance 85 percent of the project, while 15 percent would come from Serbia’s budget, the agency said, estimating the value of construction at about $30 million. -----------------------------------------------------------------------------------------------------------Erdogan Calls Maliki, Expresses Grief Over Terrorist Attacks Monday, 26 October 2009 USAD PUBLICATION ----------------------------------------------------Turkish Prime Minister Recep Tayyip Erdogan made a phone conversation with Iraqi Prime Minister Nouri Al-Maliki on Sunday and expressed grief over the deaths of up to 140 people in Sunday's double bombing in Baghdad, diplomats said. "I learned that up to 140 people were killed this morning in Baghdad. I heard the news in Pakistan's Islamabad where I am paying a formal visit. I and Pakistan's Prime Minister Raza Gilani condemned the terrorist attack. Our foreign minister called your foreign minister to tell him that Turkey was ready to treat wounded people in our hospitals. Besides, we want you to know that we are ready to meet all other your needs," Erdogan told Maliki. "We absolutely condemn terrorism. Nothing can legitimize deaths of civilian people," he said. He added that Turkey and Iraq should fight terrorism together, saying Turkish people would always stand by their Iraqi brothers and sisters. Monday, 26 October 2009 -----------------------------------------------------------------------------------------------------------"There won't be terrorism between Turkey and Iraq" Saturday, 31 October 2009 15:02 TIME TURK -------------------------------------------------A large group of Turkish businessmen will join Turkish ministers during their talks in the Iraqi cities of Basra, Irbil and Mosul. Caglayan will participate in business forums in these cities and he will also hold talks with Iraqi officials. Davutoglu and Caglayan are scheduled to attend opening ceremonies for new consulatesgeneral of Turkey in Iraq. Turkish Foreign Minister Ahmet Davutoglu and Caglayan Travel To Iraq .Turkish Foreign Minister Ahmet Davutoglu and State Minister for foreign trade Zafer Caglayan left for Iraq on Friday to have various talks and attend opening ceremonies. Friday, 30 October 2009 Davutoglu said on Saturday that there would not be terrorism and security threat between Turkey and Iraq. There will be human and product flow between the two countries, added Davutoglu who held a joint press conference with Nechirvan Barzani, an administrator of the regional administration in north of Iraq, at Irbil Airport before his departure for Mosul. Stressing that they considered the threats against Iraq as threats against Turkey, Davutoglu said that Turkey and Iraq would be a very strong axis. Meanwhile, Barzani said that they appreciated the support and assistance of Turkey. Barzani said that the recent steps of Turkey to solve problems were very important, adding that all the peoples living in the region should support the steps of Turkey.
312
BPM- Weekly Report # 91 Zone 1-Asia
He said that Iraq considered a threat against the security of Turkey as a threat against Iraq. Barzani said that Turkey and Iraq should cooperate to solve the problems. --------------------------------------------------------------------------------------------------------"Turkey's role crucial for future of region" Saturday, 31 October 2009 11:42 TIME TURK --------------------------------------The head of the regional administration in north of Iraq, Masoud Barzani, said Friday Turkey's role was crucial for the future of the region and the development of economic relations. Speaking at a joint press conference with Turkish Foreign Minister Ahmet Davutoglu in the Iraqi city of Irbil, Barzani said that Davutoglu's visit to the region was highly important. The decision taken by Turkey to open a consulate general in Irbil is an extremely positive development for the region, Barzani said. Nowadays, the Middle East is going through a sensitive period. Turkey's role is important for the future of the region and the further growth of economic ties. As the people of Iraq, we pay high attention to relations with Turkey. The region of Kurdistan plays the role of a bridge for Iraq as this region is one with stability, Barzani said. We support the steps taken by Turkey as part of the "democratic move" and thank Prime Minister Recep Tayyip Erdogan for these steps, Barzani stressed. By God's help, we hope that violence ends in the shortest time possible so that there is no bloodshed of either Kurdish or Turkish youth. I believe Prime Minister Erdogan's policy on the matter will reach a good result. I congratulate Mr. Davutoglu for his role in the matter. He plays an important role for Turkey and the region, Barzani said. In response to a question on relations between Turkey and the regional administration in north of Iraq, Barzani said that he did not see natural the existence of problems. The status quo of relations between Turkey and the regional administration in north of Iraq is what it should be naturally. I believe we can further develop relations. Our ties will develop as a result of Mr. Davutoglu's current visit to the region. The policy pursued by Turkey recently is accurate and we are ready to extend full support. Our discussions took place in a brotherly and positive atmosphere, Barzani noted. In regard to a question on terror, Barzani said that they did not approve any violence. We are saddened over the bloodshed of Turkish and Kurdish youth. Erdogan's policy intends to solve the reasons behind violence. We support the bold step taken by Turkey and are in cooperation with Turkey, Barzani also said. Following the end of the joint press conference, Barzani hosted a dinner for Davutoglu and his delegation. ----------------------------------------------------------------------------------------------------------Turkey To Open Two More Border Crossings With Iraq, Caglayan Friday, 30 October 2009 11:52 TIME TURK ------------------------------------------Turkish State Minister Zafer Caglayan said on Friday that two more border passes would be opened with Iraq by the end of 2010.
313
BPM- Weekly Report # 91 Zone 1-Asia
State Minister for Foreign Trade Caglayan said Turkey and Iraq signed a memorandum of understanding to open two more border crossings. Speaking to journalists aboard the plane on his way to Iraq, Caglayan said Turkish businessmen carried on business in north of Iraq and Baghdad but they were not much active in southern part of Iraq. Caglayan said the target of the visit was to diversify areas of business. Caglayan said busy traffic in Turkey-Iraq border passes caused delays, and noted that Turkey and Iraq signed the memorandum of understanding to overcome the delays and to contribute to trade. Turkish minister also said establishment of a common logistic center was also on the agenda, "Turkey will also extend support to establishment Turkish delegation will return to Turkey on Saturday. --------------------------------------------------------------------------------------------------------------------------------Turkey's FM to join D-8 meeting in Malaysia Davutoglu will travel to Kuala Lumpur on November 2 to attend the 12th Foreign Ministers Council of the Developing 8 Organization. Friday, 30 October 2009 17:40 Turkish Foreign Minister Ahmet Davutoglu will travel to Kuala Lumpur on November 2 to attend the 12th Foreign Ministers Council of the Developing 8 Organization. Turkish Foreign Ministry announced on Friday that Iran, Egypt, Malaysia, Pakistan, Indonesia, Bangladesh and Nigeria are also expected to participate in the meeting. Davutoglu is also expected to hold bilateral meetings with his interlocutors on the sidelines of the meeting where activities within the D-8 Cooperation will be held. Davutoglu will meet with his Malaysian counterpart Anifah Aman to discuss ways to improve friendly relations and cooperation between Turkey and Malaysia and exchange views on regional matters. ------------------------------------------------------------------------------------------------------------------------------Turkey, Azerbaijan patch up ties after flag controversy Thursday, 29 October 2009 17:11 Todays Zaman ------------------------------------------------------------------Turkish-Azerbaijani ties, strained over the historic Turkish-Armenian rapprochement, have shown further signs of recovery as Azerbaijani authorities raised Turkish flags at a monument to fallen soldiers, days after removing them amid political tensions. "What we are witnessing here is that our relations are back on track on the basis of the principle of one nation two states," Murat Mercan, a deputy from the ruling Justice and Development Party (AK Party), told reporters on Wednesday as he visited the monument, where the Turkish flags were restored on Tuesday evening. Mercan, who is heading a delegation of lawmakers from the AK Party and the Nationalist Movement Party (MHP), had talks with Azerbaijani President Ilham Aliyev and other officials in Baku. The lawmakers arrived in Baku just before the Azerbaijani authorities raised the flags at
314
BPM- Weekly Report # 91 Zone 1-Asia
the monument on Tuesday evening, ending emotional tension with Turkey. "We are very happy that the Turkish flags are flying again ... just before the Republic Day on Oct. 29," Mercan told reporters upon their arrival in Baku on Tuesday night. Azerbaijan removed flags from a monument to Turkish soldiers who fell while fighting for Azerbaijan's independence in 1918, reportedly in retaliation for Turkey's decision -- at the behest of the world soccer governing body FIFA -- to ban Azerbaijani flags during a World Cup qualifying game between the national teams of Turkey and Armenia in Bursa earlier this month. Azerbaijani flags were seen in a garbage bin after police collected them at the entrance to the stadium, angering Baku. In Ankara, Foreign Ministry spokesman Burak Özügergin dismissed any crisis in Turkish-Azerbaijani ties at a press conference on Wednesday, saying crises are categorically impossible "within a nation." He said: "There might have been some misunderstandings and difficulties, which should be seen as just one incident in a long relationship. And as far as I understand, this little incident was resolved as of this morning." Turkish Ambassador to Azerbaijan Hulusi Kılıç, who watched as Azerbaijani authorities raised the flags near the monument on Tuesday, said the development was pleasing. “The fact that our flags are being put back in their place shows that Turkey and Azerbaijan are two nations that cannot give up on each other,” he said. “I could not hold back my tears when I saw the treatment shown to Azerbaijani flags in Bursa and when the Turkish flags were removed at the monument,” said Ganire Pashayeva, a member of the Azerbaijani Parliament. The controversy, which came after Turkey and Armenia signed protocols to restore their relations and open their mutual border in Zurich on Oct. 10, strained ties between Turkey and Azerbaijan. Baku is concerned that it would lose its main leverage in the NagornoKarabakh issue if Turkey reopens its border with Armenia. Turkey closed the border in 1993 in show of solidarity with Azerbaijan, which fought a losing battle against Armenia over Nagorno-Karabakh. Turkey has pledged several times that its process of rapprochement with Armenia will not harm Azerbaijan's interests, stressing that Azerbaijan's interests are as dear to Turkey as its own. But when the flags were removed at the monument, Foreign Minister Ahmet Davutoğlu said the monument was entrusted to the Azerbaijani people to watch over and the Turkish Foreign Ministry delivered a note of protest to Baku when it removed flags which were in front of a Turkish Embassy building. Last weekend, one police officer was sacked following an investigation into the treatment of the Azerbaijani flags in Bursa. Davutoğlu, during talks with Azerbaijani leaders last week in Baku, had pledged that the disrespect for the Azerbaijani flag will be punished. Sincere with Armenia At the press conference, Özügergin said Turkey was sincerely committed to normalizing relations with Armenia, but emphasized that what Ankara aimed at with this process was not solely confined to progress in Turkish-Armenian ties. "Our purpose is also to pave the way for momentum in relations between Azerbaijan and Armenia," he said. "Everyone sees that peace and stability will not come to the Caucasus if all the wheels do not revolve at the same time." International mediators from the Organization for Security and Cooperation in Europe's (OSCE) Minsk Group have been working for years to reach a settlement on the Nagorno-
315
BPM- Weekly Report # 91 Zone 1-Asia
Karabakh problem. Özügergin said a senior Turkish diplomat, Foreign Ministry Deputy Undersecretary Ünal Çeviköz, attended Minsk Group talks in Vienna last Friday and added that "the process has momentum and we are working to further speed it up." The government has sent two protocols on the normalization of relations with Armenia to Parliament for ratification but it is not clear when they will be voted on. "The Parliament will approve of no decisions that would disturb the people of Azerbaijan," Mercan said in Baku. "There are several agreements that have been awaiting ratification in Parliament since 2000," he went on to say, noting that there is no time limit for the ratification of the Armenia protocols. -------------------------------------------------------------------------------------------------------------------------------Erdoğan rejects claims Turkey diverging from West Thursday, 29 October 2009 10:23 Todays Zaman ---------------------------------------------------Prime Minister Recep Tayyip Erdoğan on Wednesday ruled out any shift in Turkey's foreign policy orientation in the wake of a crisis with Israel over Gaza and increasing rapprochement with neighboring Iran, accused by the West of harboring aspirations to Erdoğan, speaking during a visit to Tehran, said Turkey will not sacrifice its relations with the West for the sake of building alliances with the East. Erdoğan's visit to Tehran, during which he defended Iran's nuclear program as peaceful and Turkish officials announced a deal to explore natural gas in Iran's South Pars basin, has added to Western concerns that Turkey might be forsaking its alliance with the West to pursue a leadership role in its neighborhood. The visit came two weeks after Turkey barred Israel from a NATO exercise, citing concerns over Israel's continued blockade of Gaza despite the humanitarian tragedy. Diplomatic relations between Turkey and Israel have suffered since Israel's offensive in the Gaza Strip last winter, in which Erdoğan accused Israel of committing crimes against humanity by killing more than 1,300 Palestinians. In Tehran, the prime minister was reminded of the fact that he had walked out of a January meeting of the World Economic Forum (WEF) in Davos, Switzerland, after a heated exchange with Israeli President Shimon Peres, telling him, “When it comes to killing, you know very well how to kill.” He was asked whether his reaction in Davos and his criticism of Israel was aimed at diverging from the West and moving closer to the East. “The incident there [in Davos] was a spontaneous development which was not planned beforehand. It would be wrong to consider our stance there as an objection to the West. We've been exerting efforts to improve our relations with both the West and the East in the best way. One side of Turkey's face is looking to the West, and the other to the East,” Erdoğan said, drawing attention to Turkey's membership in NATO and its ongoing membership process to enter the European Union as well as its structure of being a democratic, secular state ruled by law. Erdoğan also noted that Turkey would continue its ongoing bilateral relations with Israel as based on the principle of “rightness,” and without accepting any pressure on its own political will.
316
BPM- Weekly Report # 91 Zone 1-Asia
In Ankara, Foreign Ministry spokesperson Burak Özügergin on Wednesday described Turkey's reaction to Israel as being “in an entirely humanitarian dimension,” reiterating Turkey's expectation of Israel to end the months-long humanitarian tragedy in Gaza. “We want the situation in Gaza to be straightened out. Wanting this should not be seen as hostility towards Israel. This is a humanitarian situation,” Özügergin said, highlighting that the strength of Turkish-Israeli relations had been tested in the past and it would not break because of occasional fluctuations. When asked about concerns over the direction of Turkey's foreign policy, the spokesperson said foreign policy should not be regarded as “a zero-sum game.” “Turkey is expanding its relations; it's not changing its direction. Our axis is obvious. I guess people can't get rid of the Cold War mentality. Turkey may be extremely good friends with Syria, Iraq, Iran, Russia, Georgia and Armenia, with Greece or Bulgaria as well. This is neither against NATO nor can it be considered as a stance against any other country or a group of countries. We have to get rid of such limiting paradigms,” he said, rejecting any shift of axis. Meanwhile, in Tehran, Erdoğan said his visit wasn't aimed at mediating between Iran and the United States where he will visit in the first week of December. National currencies During Erdoğan's visit, Iranian and Turkish authorities agreed to boost ties and conduct bilateral trade in their own currencies. “The two countries should use their own currencies in bilateral trade,” Iranian First Vice President Mohammad Reza Rahimi said during a meeting of an Iranian-Turkish chamber of commerce, adding that Iran had already started to use Turkish currency in trade with its neighbor. Turkey has made the relevant legal arrangements and since there is no legal obstacle from the Iranian side either, studies on the issue can be launched shortly, Erdoğan said. -----------------------------------------------------------------------------------------------------------Turkey-Kazakhstan relations hit peak Sunday, 25 October 2009 09:24 Todays Zaman ---------------------------------Following an almost decade-and-a-half stall in Turkey's active engagement in brethren Turkic countries in Central Asia during the late Turkish president Turgut Özal's tenure, Turkey has started to build strong and lasting political and economic relations It was during Turkmenistan's President Gurbanguly Berdimuhamedov's visit to Turkey when Turkey took the first step to establish good relations with Central Asia's proRussian countries. President Abdullah Gül and Kazakh President Nursultan Nazarbayev signed a strategic partnership agreement on Thursday to boost political and economic relations between Turkey and Kazakhstan, a long-expected and belated deal according to some observers. Turkey was the first country to recognize Kazakhstan when it got its independence from the former Soviet Union in late 1991. President Özal called Kazakh President Nazarbayev an hour after its declaration of independence and congratulated him. Turkey established diplomatic relations between the two countries in four months' time. Turkish contractors and investors have made substantial progress in the past two decades and have contributed considerably to the economic development of Kazakhstan. Turkey's contribution to education in Kazakhstan is also noteworthy; there are two Turkish
317
BPM- Weekly Report # 91 Zone 1-Asia
universities and 28 Turkish schools in the country. During his joint press conference with Turkish President Gül after the signing of the strategic agreement, Nazarbayev said the strategic aspect of the partnership between Ankara and Astana has always been there. Noting that this is an important effort, a famous expert on Kazakhstan, Abdulvahab Kara, said in an interview with Sunday's Zaman that this is the first time Turkey has signed a strategic partnership agreement with any Turkic country. “I view this as a huge step. We may collect the fruits of such agreements in the future. It could have productive implications with regard to economic and cultural relations,” said Kara. In contrast, Hüseyin Bağcı, a professor of international relations at Middle East Technical University (ODTÜ), said it is not healthy to use the term strategic partnership every time. “The term has been widely used, and it has been watered down. It is impossible to have strategic relations with every country; we selectively use this term in international relations,” Bağcı said. “However,” he continued, “it is positive what has been done with Kazakhstan.” Mentioning Turkey's swift recognition of Kazakhstan's independence, Bağcı said the two countries have experienced ups and downs in bilateral relations. “Kazakhstan is a rich country with abundant natural resources and is a significant trade partner of Turkey,” Bağcı noted. The Kazakh president also said the amount of Turkish investment in Kazakhstan since 1993 has been around $1 billion, while Kazakh investment in Turkey during the same period of time has been $4 billion. The primary goal of the two countries is to increase the annual trade volume to $5 billion from the current $2.5 billion. Nazarbayev's visit also included his and nearly 200 Kazakh businessmen's participation in the TurkishKazakh Business Forum in İstanbul on Friday. Kara said Turkey and Kazakhstan are in different realms in the region, so their cooperation exceeds their competition. Speaking about the impact of growing relations with Kazakhstan, Kara also said these types of agreements may spill over to the other countries in the region. Pointing to Turkey's increasing relations with Russia, Kara said Turkish-Russian relations are indeed a determinant in Turkish-Kazakh relations, considering Kazakhstan's deep relations with Russia. Bağcı, in addition, said he had always criticized previous Turkish President Ahmed Necdet Sezer as he was unable to build diplomatic ties with Turkic countries. “As a tradition, Turkish presidents are primarily involved in diplomatic meetings with Turkic countries. Sezer had no ability in foreign affairs. This is a chance for Turkey, as Abdullah Gül's background is diplomacy,” Bağcı said. He also added that Turkey first started this expansion toward Central Asian Turkic countries in the early '90s with late President Özal. “We made many mistakes then; however, this time our foreign policy is slower, yet more confident,” Bağcı commented. He also stressed Turkey's growing relations with Russia to be a major impetus in improving relations with Kazakhstan. -----------------------------------------------------------------------------------------------------------Economic Issues Turkey's central bank lowers inflation forecastTuesday, October 27, 2009 STEVE BRYANT ANKARA – Bloomberg ----------------------------------------------
318
BPM- Weekly Report # 91 Zone 1-Asia
The Turkish Central Bank lowered its forecast for inflation at the end of the year to 5.5 percent from a previous 5.9 percent, central bank Gov. Durmuş Yılmaz said. The central bank’s inflation estimate for next year is 5.4 percent compared with a previous 5.3 percent, Yılmaz said at a news conference in Ankara on Tuesday. ---------------------------------------------------------------------------------------------------------Turkish companies find Russia, Germany most attractive Tuesday, October 27, 2009 ISTANBUL - Hürriyet Daily News ----------------------------------------------------Turkish companies consider Russia and Germany the most attractive international markets to invest in, according to a new study conducted by the Turkish unit of KPMG International. The study also focused on the effects of the recession on Turkish companies' investment appetites Turkish companies consider Russia and Germany the most attractive foreign markets for investments over the next five years, but do not consider political stability a priority in making such decisions, a new study has found. Conducted by the Turkish unit of KPMG International, the study comprised interviews with the chief executives of 50 Turkish firms on their investment appetites in August and September 2009. The companies interviewed for the study were from a range of different sectors, with annual global turnover varying between 100 million Turkish Liras to more than 500 million liras. The study, “Playing a Long Game,” was released Tuesday in Istanbul. KPMG International is the coordinating entity for a global network of professional services firms, providing audit, tax and advisory services with an industry focus. Ferruh Tunç, the chairman and senior partner of KPMG in Turkey, said Russia ranked as the favorite among respondents as an investment destination, both for the short and medium term. “Russia led the table for current investments, with 30 percent saying they had holdings there, and also took the largest share of investments planned for the year ahead, with 14 percent saying they will invest,” Tunç said. “It was also the leader for investments over the next five years, again with 14 percent.” After Russia, the four other countries in which Turkish firms most envision investing over the coming five years are the United Kingdom, Germany, Azerbaijan and the United Arab Emirates. Libya ranked fifth, Algeria sixth and France seventh on the list. Most of the other countries likely to attract Turkish investments in the next five years are also located in the Mediterranean, the Middle East and North Africa, with the exception of the United States and China. “The top rating of Russia did surprise me a bit. I would have expected western European countries to top the ranking,” said Tunç. Political stability not a concern The most significant reason for choosing to invest in a particular country is access to new customers, with seven out of 10 respondents in Turkey saying this was very important in their decision. “Turkish businesses then chose the tax regime as the second most important, followed by the regulatory climate, transport, infrastructure and political stability,” the study stated.
319
BPM- Weekly Report # 91 Zone 1-Asia
This contrasts strongly with the views recorded among investors in KPMG’s global survey, who named political stability as the second-most important attribute. Given the political history of some of the countries that are high on Turkish companies’ lists of places to invest, it may seem surprising from an international point of view that political stability is so far down on the list of key attributes, the study acknowledged. “But Turkey itself has not been immune from political instability, so it may be that Turkish business is sufficiently accustomed to operating with the prospect of political uncertainty not to see potential problems in this area as reason to avoid investment,” the authors noted. Effects of recession The study also focused on the effects of the recession on the investment appetites of Turkish companies. Four out of 10 respondents said the recession has made them change their investment plans so that they are investing more in Turkey than abroad. At the same time, approximately a third of respondents said they are increasing their foreign investments, and 16 percent say the recession has made no difference in their investment plans. However, the countries chosen as places to invest showed a desire to stay reasonably close to Turkey. A majority of these investments will be in countries where Turkish companies already operate. ----------------------------------------------------------------------------------------------------First IPO of crisis era stirs up the bourse Tuesday, October 27, 2009 ISTANBUL – Hürriyet Daily News ------------------------------------------------------Bids for the initial public offering, or IPO, of Turkish freight transporter Ran Logistics totaled 20 million Turkish Liras on the first day and stirred up the bourse, the company reported. Ran Logistics received bids at the ceiling price of 3.16 liras per share, it said in a statement Monday. The company aims to sell 9.15 million liras’ worth of shares on the Istanbul Stock Exchange, or İMKB. After realizing the first IPO of the crisis era on the exchange, Ran Logistics raised its capital and offered the public 25 percent. The demand was 2.3 times the shares available. “There has not been an IPO for a long time, thus stock-exchange investors have missed IPOs and have displayed interest over our expectations in Ran Logistics shares. We are very pleased,” said Chairman Ramiz Benli. “Their interest has revealed that we have made the right decision. We will do all we can to please our investors.” The share of 3.2 million lots out the purchase order for 6.6 million lots at the ceiling price took place in a record period of 49 seconds in the first day. The firm is due to conclude the IPO on Oct. 28. A good sign of recovery Following the investments, Ran Logistics will pay dividends, daily Hürriyet reported. “In March, we envisioned completing this IPO in August. But it took place in October. The demand in the current climate has pleased us a lot,” the paper quoted Benli as saying. “We will transfer around 10 million liras in revenues to be obtained from the IPO to warehouse and depot investments. We expect the investment to cost $11 million and [give a] return in four to five years. We would like to attain high profitability and share it with our investors.”
320
BPM- Weekly Report # 91 Zone 1-Asia
Benli also said that there is a plan to turn DTC Taşımacılık, a subsidiary purchased from Germany, into a real-estate investment trust. Founded in 1990, Ran Logistics has a capital of 12.7 million liras following the IPO. The company, which employs 135 people, reaped 39 million liras in 2008. Vedat Akgiray, the chairman of the Capital Markets Board, called the IPO is “a good signal of recovery from economic stagnation.” Speaking at an international training program held jointly with the U.S. Securities and Exchange Commission, Akgiray added: “There is a more cautious manner in terms of supervision, audit and monitoring. There should be a return particularly to the main goals of regulations. These goals include price stability, the stability of the financial system as well as the prevention of systematic risks and securing the market confidence of small investors.” ---------------------------------------------------------------------------------------------------------Turkish Light Commercial Vehicle Market Grows Tuesday, 27 October 2009 USAD PUBLICATION --------------------------------------------Turkish light commercial vehicle market has grown remarkably in September 2009, figures said on Tuesday. Data by the European Automobile Manufacturers' Association (ACEA) said the European light commercial vehicle market shrank by 24.5 percent while sales from the Turkish market rose by 73.2 percent in September 2009 compared to the same month of 2008. Turkey ranked the 2nd in Europe in sales of light commercial vehicle for September 2009. The data also showed that Turkey was ranked the 3rd among European countries with sales between January and September 2009. Tuesday, 27 October 2009 -----------------------------------------------------------------------------------------------------------Inflation Figures at Lowest Level in Recent Turkish History Tuesday, 27 October 2009 USAD PUBLICATION --------------------------------------------Turkish Central Bank Governor Durmus Yilmaz said Tuesday inflation figures for basic goods and services in Turkey were at the lowest level in the first nine months of 2009 when compared to figures in recent history. Announcing the "Inflation Report" in a press conference in Ankara, Yilmaz said that the decline in inflation rates slowed in the third quarter of 2009 due to tax adjustments made in order to balance public fiscal figures. The declining inflation rates in Turkey were not merely limited to Turkey in 2009. Due to the ongoing global financial crisis and pressure caused by declining demand, inflation figures in many parts of the world went down, Yilmaz stressed. There could be reductions in the amounts of interests if global growth slows down, Yilmaz said. In response to a question on Turkish-IMF relations, Yilmaz said that Turkey needed foreign financial resources in order to grow more rapidly, leave more resources in the hands of the private sector and reduce the debt owed by the Turkish Treasury.
321
BPM- Weekly Report # 91 Zone 1-Asia
Asked about the impact of swine flu on Turkey, Yilmaz said that the government was making plans to implement in case swine flu affected key personnel. Tuesday, 27 October 2009 n place in the media since Oct. 23. Recalling the earlier media reports and military investigation of the alleged military plan that surfaced in June, the General Staff said it has thus launched a new inquiry. Military launches inquiry “The chief of General Staff said in his June 26 statement that the Turkish Armed Forces [TSK] stick to the rule of law and democratic principles. It cannot allow its personnel who act otherwise to work in the institution. The military prosecutor [earlier] didn’t rule for a prosecution. But it is not decisive. If new evidence and information emerge regarding the authenticity of the document, an inquiry may be re-launched,” the General Staff said. Accepting the recent allegations as a denouncement, the military prosecutor thus launched an inquiry at 1:30 p.m. on Monday, the General Staff said. “If there exists a document that bears value as evidence, this should be found not in the media but with the authorities who conduct the investigation.” The General Staff also said leaking the suspected document to the media in spite of the confidentiality of the inquiry is likely to destroy the reliability of the investigation and harm the confidence between the institutions. Prosecutor wants deposition and computers The Istanbul Chief Prosecutor’s Office, meanwhile, has requested depositions from the six military officers who are mentioned in the five-page letter sent by the anonymous military officer. The officers, however, didn’t go to the prosecutor’s office and a second warning letter has been sent to the General Staff. The police will take the officers into custody and later to the prosecutor’s office if they ignore the second letter. The prosecutor’s office also demanded 35 computers that were allegedly used in drafting the suspected document from the General Staff. Meanwhile, details of the five-page letter have begun to emerge. Many newspapers including some of the pro-government media outlets in particular had earlier published major parts of the letter that involved allegations against the General Staff. The daily Radikal published the whole text of the letter Tuesday. Claims in letter In the letter, the anonymous officer claims that junta members within the military are still active and the military has a department called the Information Support Department that is engaged in coup plots, although the number of such departments has been reduced to one. The anonymous officer also claimed the document was prepared by Çiçek under instruction from Hasan Iğsız, commander of the 1st Army, when Iğsız served as the deputy chief of General Staff and that all evidence regarding the anti-government military plan was eliminated from the General Staff records. All evidence was also removed from Çiçek’s computer as well as the computers used for writing the document. The officer said he secretly obtained the original document from the file after the allegations regarding the copy of the document surfaced in the media. A crisis broke when the General Staff first realized that the original copy of the document was not in the file but then it was agreed that the copy was destroyed by one of the
322
BPM- Weekly Report # 91 Zone 1-Asia
officers engaged in coup plots, the anonymous officer said. He said Chief of General Staff Gen. İlker Başbuğ knew about the plan and made a public statement only after he concluded that the original docu ---------------------------------------------------------------------------------------------------------Social Issues Turkey starts swine flu vaccination in schools in early Nov. Monday, 26 October 2009 16:27 TIME TURK -----------------------------------------Health Minister Akdag said that students would be vaccinated as of the last week of November. National Education Ministry recessed all education institutions across Turkey on October 30. The education institutions --including pre-schools, elementary and secondary schools, private schools, courses and study centers-- will be recessed on October 30 to keep students protected against swine flu. The buildings and gardens of these education institutions will be disinfected against the H1N1 virus. On Sunday, all schools in Ankara were recessed for one week against swine flu, thus, state-run TRT 3 channel will broadcast live education programs in line with the current curriculum of the schools between 7:00 a.m. and 2:00 p.m. as of Tuesday. Under the joint project of Health Ministry, National Education Ministry and TRT, if schools in any province of Turkey are recessed, TRT 3 will broadcast education programs. Meanwhile, Health Minister Recep Akdag said that students would be vaccinated as of the last week of November, and vaccination would continue till January, 2010. Akdag warned citizens not to kiss, hug and shake hands for the next five months so that the spread of swine flu would be reduced to minimum. On Sunday, a 29-year-old patient died from swine flu which was the first death from this disease in Turkey. The number of swine flu cases in Turkey is 958. -----------------------------------------------------------------------------------------------------------Schools closed in Ankara after first death from H1N1 Monday, 26 October 2009 16:49 Todays Zaman ----------------------------------------Turkey, which has documented slowly increasing numbers of swine flu cases since it was fist discovered in the country in May, recorded its first fatality from the virus on Saturday. Monday, 26 October 2009 16:49 A 29-year-old man, Mustafa Güneş, died at the Atatürk Sanatorium after being misdiagnosed and treated for pneumonia. After the death of Güneş, Ankara Governor Kemal Önal announced that the governorate had decided to suspend primary and secondary schools in the capital for seven days from Monday on to ward against the further spread of H1N1 in the city.
323
BPM- Weekly Report # 91 Zone 1-Asia
Önal advised parents to not send their children to other educational programs such as private courses. The governor also said they will consider the situation next weekend and will share their decision on whether to extend the school closures with the public. The Health Ministry announced the first death from swine flu in Turkey on its Web site with a statement that read, “After undergoing treatment for pneumonia at the hospital, 29year-old Güneş lost his life due to acute respiratory failure.” The ministry added that the H1N1 virus was found in samples taken from the patient and emphasized that Güneş was the first person to die from this virus in the country. The total number of swine flu cases nationwide has reached 958. Following the death of Güneş, who worked at the hospital, all of his relatives have been checked and masks were distributed to patients staying at the hospital. The patient's brother stated that the cause of death of Güneş has not been explained to the family. “I received a call from the hospital at noon. They said that my brother's condition was getting worse and summoned the family to the hospital. After we came to the hospital, when we asked about my brother, they said ‘you can go now, there is nothing important.' One hour later they told us my brother died,” Hüseyin Güneş noted. Meanwhile, Health Minister Recep Akdağ responded harshly to those who chose not to be inoculated and recalled the consensus among scientists throughout the world favoring vaccination against swine flu. The minister accused some people who love populism and fame of confusing the nation, saying, “The first death has indicated the absurdity of resisting vaccination.” “If a pregnant woman got the virus after refusing vaccination and lost her life; if an asthmatic child or an adult with cardiac problems caught H1N1 and died, how would those who advised people not to be vaccinated give an account of that?” asked the minister at the opening ceremony of a new state hospital in Erzurum's Uzundere district. Akdağ stated that they benefited from the precautions they took beforehand and made a great effort to retard the spread of the virus by accelerating the vaccination process. He explained the vaccination process: “Firstly, health personnel and pregnant women, then people with serious illnesses and then children and pilgrims will be inoculated.” Commenting on the first swine flu death, the minister responded to a reporter's question recalling his earlier remarks that people over the age of 20 are not at risk in the light of the fact that the first fatality was 29, Akdağ underlined that Güneş was a health worker and the ministry acknowledged the risks to people working at hospitals. “Health personnel are the first group we will vaccinate,” the minister added. ----------------------------------------------------------------------------------------------------------Turkey starts sending swine flu vaccines to 81 cities Tuesday, 27 October 2009 12:57 TIME TURK ----------------------------------------Health Ministry stated that a total of 1,095 swine flu cases have been reported in Turkey so far. Turkish Ministry of Health began Tuesday sending vaccine to 81 provinces against the swine flu disease after preliminary test reports on the vaccine came positive. Individuals working in the health sector and those planning to go to Mecca for pilgrimage are being given priority for receiving the swine flu vaccine.
324
BPM- Weekly Report # 91 Zone 1-Asia
Health Ministry stated that a total of 1,095 swine flu cases have been reported in Turkey so far. The ministry said that the first case was seen on May 15, 2009. Currently, five people were under treatment at hospitals, and one of them was in serious condition and in intensive care unit, added the ministry. Earlier today, National Education Ministry stated that all the education institutions -including pre-schools, elementary and secondary schools, private schools, courses and study centers-- across Turkey would be recessed on October 30 to keep students protected against swine flu. The buildings and gardens of these education institutions will be disinfected starting from October 29 (national holiday as Republic Day) till November 2. Also, in capital Ankara, all schools were recessed this week. ---------------------------------------------------------------------------------------------------Swine flu vaccinations to start in Turkey Tuesday, October 27, 2009 ISTANBUL - Daily news with wires ---------------------------------------------------Health employees and pilgrims in Turkey are expected to be vaccinated with high priority against the H1N1 virus Wednesday, reported the Anatolia news agency. The first doses of the vaccines have begun to be sent to all city centers around the country. Last week 500,000 doses of the vaccines arrived in Turkey and were being tested in Ankara. According to the Health Ministry, the results of the first tests were positive for use of the vaccine. Health employees will be vaccinated at their workplaces, while pilgrims readying for the hajj to Mecca will be vaccinated at airports or at designated facilities in city centers, according to the day they are to depart. Every current case of influenza is being treated as a possible H1N1 case, Professor Mehmet Ceyhan, a member of the Health Ministry committee for watching pandemics, told daily Hürriyet, adding that the seasonal flu will start in November. “Currently, many people have overcome the H1N1 virus without falling into bed. We advise all people who have influenza symptoms to take care of their diet and rest,” Ceyhan said. The professor added that at least a few thousand people have the virus in Turkey and said that from now on, people will not be tested for swine flu unless their medical condition is critical or they need to be hospitalized. ----------------------------------------------------------------------------------------------------------All Mardin schools closed for week amid swine flu scare Tuesday, October 27, 2009 MARDIN – Anatolia the southeastern province of Mardin through the weekend to protect students against swine News Agency -----------------------------------------------------------------------All schools were recessed in flu, the governor said on Monday. Mardin Gov. Hasan Duruer told reporters that two students in the province tested positive for swine flu and that schools in the province were closed through the end of the week.
325
BPM- Weekly Report # 91 Zone 1-Asia
The Education Ministry has announced that all educational institutions in Turkey will be closed on Friday. The buildings and gardens of these educational institutions will be disinfected against the H1N1 virus, commonly called swine flu. On Sunday, a 29-year-old patient died in Ankara from swine flu, marking the first death from this disease in Turkey. On Monday, the Health Ministry stated that a total of 1,095 swine flu cases had been reported in Turkey so far. The ministry said the first case was seen on May 15. -------------------------------------------------------------------------------------------------------1095 Swine Flu Cases Reported in Turkey So Far, Health Ministry Tuesday, 27 October 2009 USAD PUBLICATIONS -----------------------------------------Turkish Health Ministry stated on Monday that a total of 1,095 swine flu cases have been reported in Turkey so far. The ministry said that the first case was seen on May 15, 2009. Currently, five people were under treatment at hospitals, and one of them was in serious condition and in intensive care unit, added the ministry. Earlier today, National Education Ministry stated that all the education institutions -including pre-schools, elementary and secondary schools, private schools, courses and study centers-- across Turkey would be recessed on October 30 to keep students protected against swine flu. The buildings and gardens of these education institutions will be disinfected starting from October 29 (national holiday as Republic Day) till November 2. Also, in capital Ankara, all schools were recessed this week. ---------------------------------------------------------------------------------------------------------Second swine flu death suspected in Manisa Wednesday, October 28, 2009 ISTANBUL - Daily News with wires ----------------------------------------------------A 28-year-old university student in the western city of Manisa is suspected to be the second person to have died of swine flu in Turkey. Yusuf Demirtaş was hospitalized at the Manisa State Hospital in serious condition on Monday and passed away Tuesday evening. He was said to have had close contact with a person already diagnosed with the H1N1 virus, reported Agence – Presse France. According to Anatolia news agency, Ziya Tay, health director for the Manisa province, said, test results to ascertain the cause of death would be available Wednesday afternoon. If tests confirm an H1N1 infection, Demirtaş would be the second person to die from the virus in Turkey. The disease claimed its first victim in Ankara Saturday. Turkey reports one more swine flu death, total number rises to three Friday, 30 October 2009 12:08 TIME TURK ------------------------------------The ministry said the number of deaths from the H1N1 strain rose to three after Thursday's fatality. 326
BPM- Weekly Report # 91 Zone 1-Asia
A 37 year-old woman died from swine flu on Thursday in the central province of Konya, Turkish Health Ministry said. The ministry said the number of deaths from the H1N1 strain rose to three after Thursday's fatality. The ministry reported earlier in the day that a 34-year-old woman swine flue patient in the southeastern city of Diyarbakir. The ministry said 1,411 people tested positive for swine flu in Turkey since May 15, 2009 as 16 of them are currently being treated in hospitals. Three of them are in critical condition. -----------------------------------------------------------------------------------------------------------Turkey's second swine flu death reported in Diyarbakır Friday, 30 October 2009 14:16 Todays Zaman ------------------------------------------------------A 34-year-old woman who had been receiving treatment for H1N1 influenza in the southeastern province of Diyarbakır died yesterday. The Health Ministry announced that with the death of the woman, whose name was not made public, swine flu fatalities have increased to two and the number of people diagnosed with the virus has risen to 1,411 since May 2009. It was also announced that 11 of those infected are being treated in hospital with three of them being in a critical condition. Turkey's first swine flu death occurred last Saturday in Ankara when Mustafa Güneş died at Ankara's Atatürk Sanatorium, where he had been receiving treatment. The Health Ministry plans to begin administering vaccines against H1N1 influenza, popularly known as swine flu, on Nov. 2, starting with health workers. In a statement released on Thursday, the ministry announced that health personnel would start getting shots on Monday as no adverse effects had been observed during tests of the country's supply of swine flu vaccine. The next group to be vaccinated will be pilgrims embarking on hajj over the next few weeks. The ministry is continuing its preparations to start vaccinating health workers, delivering vaccines to the relevant health centers and arranging briefings for the groups receiving shots. The ministry also said it would immediately provide photos taken during the vaccination of personnel, including Health Minister Recep Akdağ and ministry officials, to the press. The first shipment of 500,000 doses of swine flu vaccine arrived in Turkey last week. Samples of the vaccine were tested at the Refik Saydam Public Health Center, Turkey’s national public health research laboratory, and then distributed to health institutions across Turkey. The center announced that no problems had been detected with the random samples evaluated. Health Minister Akdağ recently announced that the vaccination of students is planned to start in late November and end in January. As Prime Minister Recep Tayyip Erdoğan said on Monday, vaccination will be voluntary and parents will decide whether to have their children vaccinated. In parallel with the controversy regarding the alleged dangers of the vaccine, there are also those in Turkey advising against receiving the shot. Following Turkey’s first swine flu fatality last weekend, Akdağ responded harshly to those who have said they will not be inoculated, mentioning the consensus among international
327
BPM- Weekly Report # 91 Zone 1-Asia
scientists who favor the vaccine. The minister said opponents of the vaccine love populism and fame and accused them of confusing the nation. “The first death has indicated the absurdity of resisting vaccination,” he added. Precautionary steps under way As the number of people diagnosed with swine flu continues to increase across the country, with cases now in excess of 1,100, efforts to prevent the spread of the virus have intensified. Public transportation vehicles in various provinces are being disinfected, with the İstanbul and Ankara municipalities announcing that they were taking action to increase their preventative measures against the virus. Nearly all schools in Ankara, which were closed for a week last Monday and set to open on Nov. 2, have been disinfected. Other provinces that reported cases of the virus have also been disinfecting their schools. In the meantime, the Anatolia news agency reported that Sivas Deputy Provincial Health Director Mehmet Erşan has also been diagnosed with swine flu. He is said to be in good condition. Turkey reported its first case of swine flu in May. The number of cases had been increasing slowly in the country up until recently when figures almost doubled in a week. ----------------------------------------------------------------------------------------------------------The food protecting from swine flu Saturday, 31 October 2009 11:09 TIMETURK/ NEWS CENTER -----------------------------------------------------------If you are afraid of catching swine flu, here is a list of some nourishments that will strenghten the immune system against the flu. According to the report by the Vatan Daily in Turkey it is pointed out that if a person if afraid of catching the swine flu there are things to do in order to strenghten the immune system. It is important to keep the immune system strong in order to fight against the swin flu. Here is a list of the nourishments to keep your immune system strong against the swine flu: Red pepper: It includes twice more vitamin C than the orange. Vitamin C is a strong weapon that will reduce the effect of the flu 80%. Yoghurt: It includes the probiotics that has useful microps fighting against the microps in the intestines. Thus it does not leave any flu virus in the body. Green tea: It includes the chemical known as “epigallocatechin gallate” that strenghtens the immune system. 3 cups of teas is advised in a day. Ginseng: According to the US scientists 2 pills of 200 mg ginseng root capsule lowers the risk of flu 31 per cent. It activates the immune. Almond: It is rich in antioxidant vitamin E that fights against the diseases. In order to be protected from flu within the day try to eat 24 pieces of almonds. Fresh potato: “Beta carote ” that it includes protects against the flu. It is converted into vitamin A in the body and has an important role in the flu treatment. Soup with chicken: It helps to ease the effects of sore throat and coughing that are the effects of the flu by increasing the mucus production in the body. Garlic: Sulphure reduces the risk of flu 2.5 times and has a property to kill the virus.
328
BPM- Weekly Report # 91 Zone 1-Asia
Fresh garlic is more effective. Ginger: “Gingerol” that it naturally includes helps to keep the body away from all kinds of infections. You can prefer ginger tea. Nut: Antioxiant selenium protects against flu and cancer. It includes selenium ten times more than all the other nourishments. Citrus fruits: Important source of vitamin C. Especially if you smoke since your getting flu risk is higher you have to take more and more vitamin C. Honey: It has a natural antibacterial property. It will be stronger within tea or yoghurt. Turkish export products fair opened in Rhodes The 2nd Turkish Export Products Fair" was opened in Rhodes, Greece on Friday. Saturday, 31 October 2009 14:58 Bulent Karakus, chairman of chamber of commerce of Turkish western province of Mugla, told A.A that the fair would continue for three days, and Turkish products would be introduced in 12 islands, especially in Rhodes. Karakus noted that such fairs would develop both economic and social and cultural relations between Turkey and Greece. He said that the first fair, which was previously held, was fruitful, adding that trade volume between islands and Mugla coasts, which was nearly zero, reached 10 million Euro today. Turkish Industry & Trade Minister Nihat Ergun, who spoke at Economic Cooperation Forum prior to the inauguration of the fair, said that Turkey's export to Greece, which was 1.7 billion USD in the first eight months of 2008, was 1.044 billion USD in the same period of 2009. He added that Turkey's import from Greece, which was 794 million USD in January-August 2008, was 709 million USD in the same period of 2009. Ergun invited Greek businessmen to invest in Turkey which had a competitive market, liberal business and investment milieu. ------------------------------------------------------------------------------------------------------------
329
