BUSINESS AND POLITICS IN THE MUSLIM WORLD

ASIA REPORT

First Quarter 2009

Volume: 3

Reports of March, 2009

Table of contents

Reports for the month of March

Week-1 March 04, 2009 03 Week-2 March 11, 2009 57 Week-3 March 18, 2009 169 Week-4 March 25, 2009 366

Country profiles Sources

2 BUSINESS AND POLITICS IN THE MUSLIM WORLD

ASIA REPORT

March 4, 2009

Nadia Tasleem: Report on Asia 04

Ashia Rehman: Report on Fertile Crescent 13

3 BUSINESS AND POLITICS IN THE MUSLIM WORLD SOUTH & EAST ASIA and GCC & Fertile Crescent Nadia Tasleem Weekly Report from 21 February 2009 to 27 February 2009 Presentation: 4 March 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, Fertile Crescent and GCC from 21 February 2009 to 27 February 2009 as have been collected by interns.

Summary

South Asia:

Political Front:

Government in Bangladesh seems to be struggling for the betterment of their country. In this regard various developments have been observed. Firstly new President Zillur Rahman expressed his desire to work neutrally for the welfare of his countrymen, on the eve of his oath taking as the country's 19th president. Secondly, Prime Minister Sheikh Hasina has announced to publish white papers on corruption. BNP Vice-chairman and lawmaker MK Anwar welcomed Prime Minister's idea and at the same time called upon the government not to restrain politicians in the name of curbing corruption. Government meanwhile has allowed all politicians to submit application at scrutiny panel for the cancellation of cases being filed against them to bring political harassment. Thirdly, government has started efforts to make village courts in order to lessen burden from formal courts. Fourthly, government claimed that territory of Bangladesh would no more be used for terrorist activities. Lastly, PM blamed military intervention for absence of true democracy in Bangladesh. She requested her public to stay dedicated to the cause of democracy in order to take Bangladesh to the height of dignity. Meanwhile, an alliance of leftist parties has demanded and an end to 'political interference' by the country's military intelligence agency, along with white papers on all actions of the past caretaker government. On the other hand BNP has announced to take grass root suggestions into notice to strengthen the party. All the while another significant issue emerged when Bangladesh was rattled by a fierce gun battle inside the headquarters of Bangladesh Rifles (BDR - paramilitary border security force); where junior officers have taken control and locked up senior officers in a mutiny. Gun and mortar shell firings were heard

4 and local media reported that 3 civilians and 2 BDR officials died. Government asked them to start negotiations in order to bring stability. Moving towards Srilanka political front remained occupied with issues regarding LTTE and Tamils civilians as well as stance of various states in this issue. Srilankan troops have even captured Tigers' most significant Sea base. Civilians have also started coming out of Tigers' controlled areas. Meanwhile members of Tamil National Alliance seem concerned about their future political role. Above all LTTE has also asked ruling regime to start negotiations to resolve ongoing crisis; government however has demanded release of civilians and total surrender from LTTE. US and UK urged Srilankan government to sort out political solution to Tamils issue. US Treasury even imposed sanctions against LTTE. India meanwhile asked government to suspend military campaign and asked Tigers to lay down arms. EU also asked LTTE to leave arms and participate in the process of democratization. Canadian Parliament also discussed Tamil genocide in their Parliament. Denmark also expressed concern regarding civilians trapped in LTTE controlled areas; government however clarified its position to Danish foreign minister. Russia however dismissed an attempt by Mexico to discuss in the Security Council the current military conflict in Sri Lanka. Srilankan government has agreed with UN to work in coordination to bring peaceful resolution to ongoing Tamils’ issue. UN has also announced to allocate $10 million to Srilanka in order to provide assistance to civilians caught in Tigers’ areas. Eelam National Democratic Liberation Front (ENDLF), a Tamils’ political party has asked India to play urgent role in solving civilians’ issue. The US President has sent message of congrats to newly elected President Nasheed of Maldives. President Nasheed has expressed satisfaction with first 100 years of his government by claiming that no act of revenge has been taken against any member of previous government. President has also appreciated role of defence forces in bringing democracy in their country. Various political parties in Nepal have started putting efforts to reach at a consensus regarding constitution making. Nepal Majdoor Kisan Party (NMKP) has also presented a draft of new constitution calling for executive power of the state to the President. Meanwhile former President has accused new government for its inability to deal with the issue of Nepali Army. Koirala has also asked new regime to stay isolated from religious politics. Likewise major seven parties have reached an agreement to form Integrated Service Centres (ISCs) only on the basis of recommendations made by an all-party committee and the necessity of the people's in the concerned districts. Various parties have expressed serious concerns regarding PM’s recent statement asking Maoists to stay ready for another revolution against those who try to topple Maoists’ regime. General strikes in Terai region also crippled country affairs.

India:

As far as election campaigns are concerned one of the most significant development had been VHP’s letters to various Muslim ulema asking them to declare India ‘Dar-ul-Aman’

5 hence asking Muslim Jihadis to stop war against India. They claimed that India is friendly towards Muslims and Islam hence Muslims should not fight against her. Besides that use of abusive language by Narendra Modi against Congress leader Rahul Gandhi and in response same thing being done by Congress against BJP, remained visible. Meanwhile Muslim Ulemas in UP have started accusing Mayawati to stop Anti-terror squad from victimizing Muslim youth. Besides all that killing of some high officials in Manipur has brought strong criticism against government hence opposition parties have given the proposal of implementation of Presidential rule in Manipur. They have infact accused government for its inability to control National Socialist Council of Nagaland- Isak-Muivah (NSCN-IM) rebels. NSCN-IM however has denied its role in recent killings in the region.

As far as issue of Mumbai attacks is concerned efforts are still on the way to find out real culprits. India and Pakistan both seem to be keen in resolving this issue peacefully.

As far as Jammu & Kashmir is concerned Chief Minister Omar Abdullah said that if the situation in the State continued to improve the way as in the recent past, the coalition government would withdraw laws such as the Armed Forces Special Powers Act (AFSPA) and the Disturbed Areas Act. Meanwhile an article by an American investigative Journalist, Steve Coll, published in Washington Post has revealed a secret deal between India and Pakistan regarding Kashmir that was under way during President Musharraf’s regime.

Social Front:

The only social development in Bangladesh is regarding alarmingly increasing number of drug addicts across the country. According to reports atleast 65 lakhs people including 1 lakh and 50 thousands women are drug addicted, 90 per cent of them are young people between ages of 18 to 25. At Maldivian social front, protest by a group of people asking government to free media remained potent. Meanwhile Maldivian President admired strong Islamic culture prevailing in the country. Above all Secretary-General of Amnesty International (AI) Irene Khan has said that the Maldives now has the best human rights record and has more freedom for press than any other country in South Asia. Flood victims in Nepal launched anti-regime protest in order to grab attention. Drug addiction has appeared to be the most potent issue at Bhutanese social front. Meanwhile a new human rights report by US department of state said the human rights situation in Bhutan has improved in the year 2007 but is not adequate for in a democratic nation.

India:

6 At social front the most significant development seems to be statement made by Mufti Shabbir Ahmed Siddiqui, the Imam of a Shia mosque in Ahmedabad; who declared Modi to be a good person hence asked Muslims to forgive him for Gujrat massacre. Meanwhile Lucknow University’s department of ancient Indian history and archaeology has unearthed a 2,000-year-old Shiva temple as part of its excavation project recently in Uttar Pradesh; that is being considered as one among the oldest brick shrines. Besides that sharp rise in human rights violation against minorities, increase in the number of hepatitis victims and growing poverty level mainly in rural areas remained key issues at social front. Lastly debates regarding ‘Slum-dog millionaire’, after its acquisition of 8 Oscar awards remained another hot issue.

Geo-strategic Front:

Bangladeshi government has announced to provide India with transit facility that has been under discussion for a long time; in case it benefits poor people of Bangladesh. Many within country however have started accusing AL for selling sovereignty and independence of Bangladesh at the hand of India. Meanwhile Pranab Mukherjee during his visit signed two trade pacts with Bangladesh. US Assistant Secretary of State for South Asia Richard Boucher paid a visit to Bangladesh during which he held meetings with Home Minister and opposition leader consecutively. He assured full US assistance to Bangladesh in war against terrorism as well as in order to persecute war criminals. Chinese delegation also paid visit to Bangladesh and discussed various issues including Bangladeshi maritime issue and installation of nuclear power plant with government officials. Srilanka and Iran have started negotiations to solidify their ties. New Maldivian government seems to be keen in enhancing relations with Muslim countries including Libya, Qatar etc. President has also paid a visit to Italy to enhance ties with her. Meanwhile Republic of Maldives and the Republic of Uruguay have established Diplomatic Relations. Nepal has reiterated its comitment to one-China policy while meeting with delegation of Chinese People’s Liberation Army (PLA). Meanwhile Japan has announced to extend a grant assistance of USD 6.818 million to Nepal for Food Aid. East Timorese President Jose Ramos-Horta has called on the United States to use the “international goodwill” generated by Barack Obama’s historic presidency to help end Burma’s political crisis. Meanwhile EU’s Presidency has asked Myanmar to bring political reforms. As India continues democratic sensitization of the Bhutanese leadership, 11 National Council members have been invited to New Delhi for parliamentary meeting with Indian lawmakers.

India:

7 India has expressed serious concerns regarding Pakistan’s deal with Talibans in Swat. They claimed that by recognizing Talibans Pakistan has clearly evinced its cooperation with terrorists. Meanwhile Pakistani President has asked China to play the role of an arbitrator to resolve Indo-Pak dispute. Besides that amidst rising unemployment, Britain is putting in place new immigration restrictions on professionals from India and other non-EU countries so that existing jobs are first offered to local workers.

Economic Front:

Bangladeshi Finance Minister has expressed his satisfaction with ongoing growth rate of his country hence claimed that his country has been able to sustain even amidst global economic recession as GDP remained at 6. Meanwhile in first month of the year a record $865 million remittance flowed into the country. On the other hand growing prices of gold and other commodities have added more to the miseries of common man. At economic front Maldives Monetary Authority’s (MMA) announcement to smooth ways for Islamic banking remained important. At economic front massive fall in share prices of development pulled down the Nepal Stock Exchange (NEPSE) index by 18.4 percent to 677.52 points. At Maldivian economic front officials and executives at a Vietnam-Myanmar trade fair have signed several deals to boost trade between the two countries.

India:

At economic front impact of global economic recession is visible. In this regard more than 2 lakh Indians lost jobs in gems & jewelry sector, almost 20,000 overseas had to return home after losing jobs there, stock exchange fell sharply and growth rate has reached at 5.3%. In the meantime, inflation has dropped to 3.36% amidst slowing economy.

East Asia:

Political Front:

At political front elections preparation in Indonesia as a whole and Aceh province particularly; where elections have to be held on April 9, remained the most significant development. Meanwhile concern of various groups regarding election expenditure amidst global economic crisis also remained important. A local opinion poll has claimed President Yudhoyono’s victory in upcoming elections. Besides that Hillary Clinton’s visit

8 to East Asia also grabbed attention of people belonging to different walks of life. Developments regarding upcoming elections in Malaysia also remained potent. In this regard Deputy Prime Minister Datuk Seri Najib Tun Razak filed his acceptance form for the Umno president’s post which he won uncontested ahead of the March party election. This completes the formality for him to take over the helm of the party during the Umno general assembly next month. Meanwhile government institutes are being blamed for lacking neutrality hence damaging democracy. Though Presidential elections in Philippines are due to be held in next year yet things are being shaped accordingly. Meanwhile 11 communist rebels have been killed by military troops in Southern region. At Thai political front thousands of anti-government protesters besieged the Thai prime minister’s office to demand his exit and snap elections as well.

Social Front:

According to a survey majority in Indonesia oppose killings of American civilians. Besides that Indonesia and have discussed issue of Rohingya refugees in order to settle them in both countries. Malaysia has expressed serious concerns regarding its disabled overseas workers. Democracy activists in Philippines came in streets to launch protest against Myanmar for its poor human rights record. Meanwhile moderate earthquake jolts have also been felt in the region. Thai PM has expressed serious concerns regarding Rohingya refugees. A large forest fire broke out near Tampines in . Human rights in communist Vietnam remained at an “unsatisfactory” level in the last year, according to the US State Department, citing police and government corruption and restrictions on political opposition. Laos has boosted educational ties with Vietnam and health ties with Brunei. Cambodian Finance Minister announced plan to spend US$1 billion mainly targeting transport, infrastructure and irrigation projects. The United States lamented 's “poor” human rights record in its annual human rights report, citing the abuse of detainees, the impunity of security forces and “endemic” corruption as the areas of most concern.

Economic Front:

Indonesia has announced to export super quality rice to Japan, Malaysia, Brunei Darussalam, China's Hong Kong and Timor Leste. Indonesia's trade minister has asked to back a proposal for the world's rich nations to support developing countries through the global financial crisis. Investments in Malaysia remained unaffected by economic recession. Tens of thousands more people are leaving the Philippines to work abroad despite the global economic downturn which was expected to hit overseas employment. Meanwhile President Arroyo hailed the ratification of the Japan-Philippines

9 Economic Partnership Agreement or JPEPA calling it another tool to combat the global financial crisis. Singapore has adopted an approach to free up banking in order to deal with ongoing economic crisis. Meanwhile Singapore and Vietnam have signed economic agreement to enhance their cooperation. Prices in Vietnam have risen 1.17 per cent in February, hinting at a return of inflation even as economic growth continues to slow. Lao PDR’s export has reached US$276 million for 2008-2009 fiscal year and risen by 7%, compared with the same period of last year. Government of Laos has been putting efforts to formulate strategies to counter economic crisis.

Fertile Crescent:

Political Front:

UN tribunal has been given the responsibility to find out culprits of Rafiq Hariri’s assassination, former Lebanese PM. During talks held in Cairo various factions of Palestine have agreed to sort out their differences in order to form unity government for the betterment of their people. In this regard Mahmood Abbas further claimed that Hamas, being representative of Palestinians, would surely be included in future government. Meanwhile Palestine has been accused by firing rocket in Israeli territory. Release of Ayman Nour, former President of Al-Ghad (tomorrow)-pro democracy party, after three years of detention has shocked almost everyone in Egypt, including his own wife. Meanwhile deadly blast occurred in Cairo killing 24 people. This act of terror has brought strong criticism by various countries. The suicide bombing inside the Iraqi parliament killed eight people. As a result the Iraqi parliament has lifted the immunity of an MP, Mr. Daini, leaving him liable to arrest over several fatal attacks. Sunni lawmaker Mohammed al-Daini was earlier on a flight to Jordan when the plane was made to turn around and return to Iraq. Allegations against Mr Daini include claims he was involved in the bombing of the Iraqi parliament in 2007. He says the claims are untrue and adds he was going to Jordan to visit his family and was not trying to flee.

Geo-strategic Front:

EU has expressed interest in developing cordial ties with Lebanon. Meanwhile Israel claimed that its one soldier and one boat have been missing from Lebanese border. Exchange of rocket fire also took place between Israel and Lebanon; Lebanese President however strongly condemned both sides for launching rockets against one another. Moving towards Israel & Palestine, the human rights group Amnesty International called on the United States to stop weapons sales to Israel and on all countries to impose an arms embargo on both Israel and the Palestinians. Turkey, Cairo, South Africa and Iran have extended full support to Palestine. Turkey in this regard has asked Israel to

10 recognize Palestine in order to bring peace in the region. Cairo has been focusing on boosting ties with Palestinians. South African solidarity with Palestinian cause seems to be significant. While Iran has asked the whole world to take action against Israel for its brutality; meanwhile Israel has also condemned Iran for supplying arms to Palestinians. Egypt has been trying to play key role in resolving existing conflict between Israel and Palestine hence have hold negotiations in Cairo to sort out their differences. All the while according to a recent US National Intelligence Council report, Saudi Arabia has replaced Egypt as the regional leader. Syrian efforts to enhance relations with Iran, EU, Kuwait, Saudi Arabia, Italy and Armenia remained significant at geo-strategic front. Meanwhile Israel has expressed hopes to bring peace with . Above all recent reports by IAEA claiming presence of nuclear material at Syrian site in Northeastern region, also grabbed attention. Besides that Syria said that presence of more than a million Iraqi refugees is stretching its strapped economic resources to the limit and has asked other Arab countries for help. At Iraqi geo-strategic front France has informed Iraqi authorities that it is still interested in the deals it signed with the country under the former regime of .

Social Front:

In order to avoid discrimination on religious basis Lebanese government has allowed its citizens to remove religious affiliation from their ID cards. PLO called for a general strike as a first step of actions to be taken by the Palestinians against the latest Israeli decision to evacuate the entire Silwan neighborhood and demolish 80 houses that is the home to 1500 people, in order to convert into a park. Delegation of Syrian doctors has gone to Gaza to provide them with humanitarian assistance. Meanwhile scarcity of food has been identified as a key challenge being faced by Syria.

GCC:

Political Front:

Members of Saudi Arabia's Shiite minority have held protests that included anti- government slogans rarely heard in public, escalating tensions with authorities sparked by a dispute at a cemetery in Madina.

Geo-strategic Front:

11 Saudi Foreign Minister recently claimed that differences with Syria have been buried in the past and now both countries are on the way to develop friendly ties. Iran has announced to send its envoy to Bahrain next week in a bid to defuse a row that has threatened relations between the two Gulf neighbours. Meanwhile the six-nation Gulf Cooperation Council (GCC) called on Iran to refrain from hostile remarks against its Arab neighbors, while also proposing a joint fund for the reconstruction of the Gaza Strip, during their joint meeting.

Social Front:

A two-year Saudi block against the -based Elaph online daily was lifted last week. The move came a few days after a major reshuffle in the government. The paper received 40,000 visitors to its website from the Kingdom on the first day the block was lifted. Meanwhile traffic authorities in Bahrain have enforced a ban on bumper stickers or any other colorful painting that change the appearance of cars. A former Cabinet minister in the United Arab Emirates has been sentenced to two years in jail after being convicted of fraud.

Economic Front:

Decline in oil prices reaching at $37 per barrel, has brought negative impacts for the economy of GCC mainly, Saudi Arabia & UAE. Meanwhile sharp decrease in Saudi stock exchange has also been observed. As far as UAE is concerned huge foreign assets and strong financial position have helped her to survive so far. In the meantime inflation has increased sharply but it is expected to decrease by mid of this year. Despite the global economic downturn, government officials and hoteliers in Qatar remain upbeat about the country's tourism prospects. Looking at the Gulf region, as a whole, few things seem to be significant at economic front. In this regard a report by Standard & Poor's Ratings Services claims that Gulf Islamic financial institutions and Takaful companies are feeling the repercussions of the current global financial market disruption less than most of their conventional counterparts because Sharia law prohibits interest-based financial products. Report further suggests that Islamic financial institutes will earn more profit if real estate prices continue to fall in the Middle East. Besides that it is generally being assumed that Islamic (Takaful) market will grow five fold over the next 10 years while the market for Sharia-compliant insurance will be worth $14 billion by 2015.

BUSINESS AND POLITICS IN THE MUSLIM WORLD

12 Fertile Crescent

Aisha Rehman

From 21st-27th February, 2009

Lebanon

Political front

• Assad unconcerned • Judge accuses Feb. 14 attackers of 'murder and sabotage' • Lebanon frees 3 suspects in Hariri's assassination Geo strategic front

• French FM regrets Syria didn't send an ambassador to Beirut yet • Lebanon's Palestinian refugees pose threat • US Senator Kerry meets with Syrian President • France, Saudi support Tribunal despite rapprochement with Syria • Vincent: Syrian witnesses could be tried in absentia • EU to work with any Lebanon government: Solana

Security front

• Israeli soldier disappeared near the border with Lebanon • 2 rockets fired from Lebanon and 8 from Israel • Suleiman: Israel has no pretext to launch war against Lebanon • Social front • Lebanon makes the right move on ID cards

ISRAEL AND PALESTINE

• Report of Amnesty international Political front

PALESTINIANS AGREE TO FORM UNITY GOV’T

• Olmert names two officials to replace Gaza pointman • Palestine still in good shape • PA bans Nablus panel on Palestine Liberation Organization • Palestine Abbas for Including Hamas Social front

• PLO Protests against Israeli Decision to Demolished Silwan Neighborhood

13 • • Turkish anti-Israel mini-series aired Security front

• ISRAEL'S LIVNI WARNS OF ANOTHER GAZA OPERATION • OLMERT SACKS LEAD NEGOTIATOR ON GAZA TRUCE • RAFAH CROSSING REMAINS OPEN BUT SECURITY TIGHTENED AFTER CAIRO BOMBING Geo strategic front

• TURKEY: ISRAEL SHOULD RECOGNIZE PALESTINE • SOUTH AFRICAN WORKERS’ SOLIDARITY WITH PALESTINE • IRAN URGES WORLD SUPPORT FOR PALESTINE • CUBA, PALESTINE FMS FOSTER LINKS • FAYYAD SAYS PA NEED 2.8 BILLION US DOLLARS FOR GAZA RECONSTRUCTION • HAMAS AND FATAH AGREE TO STOP ARRESTS, SMEAR CAMPAIGNS • PALESTINIAN ROCKET FIRED INTO ISRAEL: MILITARY • ISRAEL'S NEW IRAN POLICY: SWAY OBAMA ON TEHRAN TALKS EGYPT Political front • EGYPTIAN DISSIDENT 'SURPRISED' TO BE FREED, VOWS TO REBUILD PARTY Geo strategic front • Saudi Arabia replacing Egypt as regional leader, says report • Fatah and Hamas 'break the ice' in Egypt • EU MONITORS READY TO GET BACK TO WORK • HAMAS AND FATAH MEET IN EGYPT • MIDEAST STATES CONDEMN CAIRO BOMBING • EGYPTIANS HURT IN GAZA CONTRABAND FUEL BLAZE • African Union, US condemn deadly attack in Egypt • EGYPT: FM SPOKESMAN: EGYPT TO PURSUE EFFORTS IN PALESTINIAN RECONCILIATION Economic front • Egypt recalls trade delegation from Israel Social front • Egypt hints at compromise on ICC prosecution of Sudan president

Syria

14 • Boosting cooperation between Lattakia and a Turkish agricultural delegation on fighting fires and preservation of the forests discussed • Palestinian Groups and Follow-up Higher Committee stress that the success of Palestinian Dialogue is dependent on the participation of all groups • Honoring the participant doctors in Syrian Medical delegation sent to Gaza • President al-Assad and Emir Hamad Bin Khalifa Al Thani underline importance of realizing Palestinian reconciliation and Arab Solidarity • Lattakia escorts the late Abu Moussa to his final resting place in a dignified procession • Aleppo and Gaziantep universities to Enhance Scientific Cooperation • Kuwaiti Ambassador in Damascus describes Syrian-Kuwaiti ties as deep and strong • Patriarchs of Damascus condemn Israeli media offense of Christian symbols • Ottri in Iran Friday heading a Syrian delegation to the meetings of the Syrian- Iranian Higher Committee • President al-Assad Discusses with Solana the Syrian-EU Relations and Ways of Consolidating them in the Interests of Both Sides • President al-Assad issues law No. 4 on applying rules of E-Sign law • Journalists Union Calls for Establishing a Higher Media Council • Transport Minister Discusses with Italian Delegation Cooperation Possibilities in the Field of Constructing Roads and Bridges • Higher Education and CIEP Sign Agreement on Quality Assurance System in Institutes • Israeli Tribunal to Convene Next Week to Discuss Possibility of Releasing Syrian Captive Bushr al-Maqt • President al-Assad Receives Letter from Kuwait's Emir on Distinguished Relations and Preparation for Forthcoming Arab Summit • President al-Assad Discusses with Armenian Foreign Minister Boosting Bilateral Relations • US Sen. Kerry hopeful after Syria talks • SYRIA: Drought blamed for food scarcity • Katyusha Attack: Iranian Reaction or Message to Syria! • Syria takes cautious path on stocks • Syria, Yemen urge to lift blockade on Gaza • IAEA reports nuclear material found at Syria site • New Israeli government brings hope for peace with Syria • Rights group wants Syria to abolish security court • Syria urged to abolish Supreme State Security Court • Syria must abolish security court, says group • EU not to mediate in talks between Syria and Israel: EU special representative for Middle East • Syrian ambassador to meet senior U.S. diplomat • Tribunal on Lebanon assassination to open Sunday • Syria Discloses Missile Facility, Europeans Say

15 • Syria seeks to boost Riyadh ties • Hamas: Some prisoners freed for Shalit may be settled in Syria • Syria FM to attend Sharm meet on Gaza • Syria willing to help on Palestinian unity says Kerry

IRAQ

Political front

• Iraqi lawmaker's immunity lifted

Economic front

• Syria says Iraqi refugees turn into ‘unbearable’ economic burden • Iraq seeking contractor to revamp pipeline via Syria • France says it abides by former oil deal to develop Majnoon

Social front

• Former army generals snub government’s offer to return • Museum reopening tells story of a hijacked country • New jail opens at Abu Ghraib site

Lebanon

Political front

Assad unconcerned

During an interview by The British Guardian daily last week Assad said he was unconcerned by the opening on 1 March of the UN tribunal investigating the Hariri assassination. " Any request for the handover of to the tribunal would require Syria's agreement", he said. France a key supporter of the Tribunal is not amused by Assad's attitude towards the tribunal: French foreign minister Bernard Kouchner told Asharq al-Awsat daily last Friday that "French President Nicolas Sarkozy has made it clear to his Syrian counterpart Bashar Assad that there was no compromise on the court." "We believe that everyone should help the tribunal and cooperate with it. France's initial stance is to support international justice away from political pressure," Kouchner told

Judge accuses Feb. 14 attackers of 'murder and sabotage'

16 At least 16 suspects were officially charged with committing several crimes including murder, attempted murder and rioting following a national rally Feb. 14 with some facing the death penalty if proven guilty of killing. The suspects, including 10 in detention, are accused of mounting attacks on citizens returning from a rally to commemorate the anniversary of the assassination of former PM Rafik Hariri. Two people were killed from severely inflicted wounds and at least 30 were injured. Appeals deputy public prosecutor Judge Joseph Maamari charged the suspects with "forming an assembly of villains in Beirut on February 14, 2009 with the purpose of committing felonies against persons and businesses and to undermine the state's authority." The judge referred the file to first examining magistrate in Beirut Abdul Rahim Hammoud to complete the required legal procedures before trial. In addition to Zeineddine, Khaled Toaimeh, 20 from the village of al-Faour in East Lebanon's Bekaa Valley died late Monday

Lebanon frees 3 suspects in Hariri's assassination

Three men jailed for more than three years in the assassination of former Prime Minister Rafik Hariri were set free on bail, days before an international tribunal was to begin trying the case. The judge did not explain his decision to release two Lebanese brothers on a bail of 500,000 Lebanese pounds ($330) each and a Syrian man on a bail of just 100,000 Lebanese pounds ($67). The three could still be prosecuted in the case, although no one has been charged in the suicide bombing that killed Hariri and 22 others on a seaside street in Beirut on Feb. 14, 2005. Investigating judge Saqr Saqr's decision, carried by the official news agency, said four other suspects in the bombing — all pro-Syrian Lebanese generals — would remain jailed, which could allow them to be turned over to the international court. At the time of the assassination, the generals headed the police, military intelligence, a General Security agency, and the Presidential Guard Brigade.

The late Hariri had close ties with Western leaders and was credited with helping rebuild Beirut after the 1975-1990 civil war and trying to limit neighboring Syria's influence over Lebanon.

Two of the men freed Wednesday — brothers Mahmoud and Ahmed Abdel-Aal, are member of al-Ahbash a pro-Syrian Sunni Muslim fundamentalist group — were detained in 2005. A U.N. probe into the slaying said Mahmoud made "interesting" phone calls Feb. 14, including one to former President Emile Lahoud, just before a truck bomb killed Hariri, raising questions about the president. But the office of Lahoud, a Hariri rival and Syria's staunchest ally, denied the president received the call.

The third man freed, Syrian Ibrahim Jarjoura, was arrested in 2006 on suspicion he gave false evidence and misled the investigation.As the news of the release of the Abdel-Aal brothers filtered down, several hundred supporters gathered outside offices of Ahmed's faction in a Muslim neighborhood of Beirut to await their arrival. Some beat drums, others handed out candy, set off firecrackers or fired off pistols into the air in celebration.

Geo strategic front

17

French FM regrets Syria didn't send an ambassador to Beirut yet

French Foreign Minister Bernard Kouchner expressed regret that Syria didn't send an ambassador to Beirut, Lebanon yet, saying the head of mission should have been appointed last week. "We didn't understand why there was a delay," Kouchner told The ambassador "should have been appointed last week.""Many things have been achieved, including the establishment of diplomatic relations which is recognition of Lebanon … But it's a pity that Damascus did not yet send its ambassador," he said. The foreign minister also reiterated his country's support to the international tribunal that will try ex- Premier Rafik Hariri's suspected assassins. He revealed that French President Nicolas Sarkozy has made it clear to his Syrian counterpart Bashar Assad that there was "no compromise" on the court.

Lebanon's Palestinian refugees pose threat

The ongoing neglect of Palestinian refugees in Lebanon is fostering radicalism and could spark a conflict, a report from the International Crisis Group said. The Belgium-based independent non-governmental organization said in a report released that Lebanon's security-first policy has left the Palestinian population in the country marginalized and susceptible to recruitment by Jihadi militants, the Crisis Group reported. The report, titled "Nurturing Instability: Lebanon's Palestinian Refugee Camps," calls on leaders in Lebanon to address the neglect of hundreds of thousands of increasingly heavily armed Palestinians or face the possibility of a serious conflict that could spread throughout the region. "The camps are a tinderbox blend of socioeconomic deprivation, political marginalization, mistrust of the state, ineffective security, radicalization, weapons and divided leadership," Robert Malley, Crisis Group Middle East program director, said in a statement. The Crisis Group report calls for clarifying the status of the Palestinian refugees, a review of security at the Palestinian camps and a strengthening of Lebanese- Palestinian and inter-Palestinian cooperation.

US Senator Kerry meets with Syrian President

Senator John Kerry, who heads the Senate Foreign Relations committee, went into immediate talks with Syrian President Bashar Al-Assad to encourage him to curb support for Islamist militant groups in return for a new policy of dialogue with the Obama Administration. The Massachusetts Democrat, who is also set to meet with Foreign Minister Walid Mouallem and other officials, arrived in the Syrian capital for a two-day visit, the last leg of a five-stop regional tour that has taken him to Egypt, Jordan, Lebanon and Israel. He also paid a surprising visit to the isolated, battle-scarred Gaza Strip, the first in nearly a decade by a U.S. lawmaker since the second Palestinian uprising broke out. House Foreign Affairs Committee Chairman Howard Berman, (D-Calif.), also arrived in the Syrian capital earlier in the day, to discuss how both countries can have better ties. In a further sign of efforts in Washington to re-engage diplomatically with hostile regimes, Syrian Ambassador Imad Moustapha was set to meet with Jeffrey D.

18 Feltman, the acting Assistant Secretary of State for Near Eastern affairs ( and former US ambassador to Lebanon) next week, at Feltman's request.

Kerry made it clear on earlier stops of his trip that a U.S.-Syrian rapprochement will require Assad to stop meddling in Lebanese politics and to back away from support of the Lebanese Shi'ite militia Hezbollah, Palestinian Islamic Jihad, and Hamas, and - perhaps most important of all - prying Syria away from its three-decade alliance with Iran.

Syria has indicated that it seeks no further quarrel with Washington, even saying it would like the new administration to mediate stalled Syrian-Israeli peace talks to restore the Golan Heights, end sanctions, and allow the inflow of Western investment and technology.

France, Saudi support Tribunal despite rapprochement with Syria

France and Saudi Arabia will maintain their support for the Special International Tribunal for Lebanon regardless of efforts to improve ties with Syria, the French foreign minister said after talks with his Saudi counterpart in Paris. "Paris and Riyadh are in agreement over supporting the STL regardless of any attempts of rapprochement between France and Syria and between Saudi Arabia and Syria," French FM Bernard Kouchner told a press conference alongside his Saudi counterpart Prince Saud al-Faisal. Although the two officials did not discuss the tribunal during their meeting, but the French and Saudi positions "have not changed," Kouchner said. "Saudi Arabia and France both contributed in the financing of the tribunal since the beginning and we await the results."Kouchner voiced hope that the Special International Tribunal for Lebanon will "find the perpetrators of Hariri's assassination." He announced he will be visiting Saudi Arabia on March 22. For his part, Prince Saud said "the tribunal is in the hands of the United Nations."

Vincent: Syrian witnesses could be tried in absentia

Robin Vincent , the Registrar of the Special International Tribunal has said that failure by Syria to hand over witnesses to the assassination of Lebanon's former prime minister Rafik Hariri could compel the court to conduct trials in absentia.If Syria failed to cooperate in this regard, it will be a "blow" to the Security Council, Vincent said in remarks. Vincent warned that Syria's negative response could compel the court to conduct trial in absentia. He pointed to measures being considered for the protection of the witnesses. Vincent also spoke of "guarantees" to ensure the well being of the witnesses, stressing that Dutch police enjoy excellent experience in this respect. He said that the trials could last for more than six years.

EU to work with any Lebanon government: Solana

EU foreign policy supreme Javier Solana said that the Europeans will work with whatever government is formed in Lebanon following the June 7 general election. Asked during a visit to Beirut if the European Union is ready to deal with any parliamentary

19 majority group after the vote, Solana said: "Yes, of course." The election could produce a majority for the Iran- and Syria-backed faction led by Shiite group Hezbollah, which backs armed struggle against Israel and is classed by the United States as a "terrorist organisation."Solana, who met Syrian President Bashar al-Assad in Damascus, also said Syria will cooperate with the Special Tribunal for Lebanon. Asked if Syria has pledged to cooperate, he said: "Yes, yes, but let's see. The tribunal will be established this week and we will see how things go." Solana is on a regional tour before attending a conference in Egypt on the reconstruction of Gaza. Before then, he plans to visit Egypt, Israel, the West and the Gaza Strip.

Security front

Israeli soldier disappeared near the border with Lebanon

Israeli forces fired late bomb flares over Naqoura area where (UNIFIL) is located , near the Lebanese-Israeli border, shortly after news reports said an Israeli soldier went missing near Lebanon, according to the Lebanese police. Al-Arabiya television channel was the first to report that an Israeli soldier disappeared while doing physical exercise near the border with Lebanon. Israel notified UNIFIL Friday evening that an Israeli soldier went missing near the Lebanese border Israel also notified UNFIL that an Israeli boat disappeared in the Lebanese territorial waters . Israel did not explain what the boat was doing in Lebanese water Shortly after the news report, bomb flares lit the sky over the border area of Naqoura, where the United Nations Interim Forces in southern Lebanon (UNIFIL) is located.

UNIFIL spokesperson Yasmina Bouziane told VOL: So far we still have no reports about the disappearance of an Israeli soldier near the border with Lebanon. She did however confirm that flares were fired over Lebanese territorial waters, but gave no further details. Unconfirmed Lebanese reports indicated that the missing Israeli soldier might have drowned, explaining why flares were being dropped along the coastal area of Naquoura.

2 rockets fired from Lebanon and 8 from Israel

Two rockets were fired from south Lebanon at Israel, with one slamming into a mostly Christian Arab village and causing minor injuries to at least one Israeli, reported Lebanese and Israeli officials. Lebanese security said the rockets were fired from the Mansouri and al-Qulaila areas near the coastal town of Naqoura and said one rocket appeared to have landed in Israel. An Israeli army spokesman said a woman was injured and the military responded to the rockets. He did not elaborate. Israeli paramedics in Jerusalem said one rocket landed in northern Israel, causing minor injuries to three people who were taken to a hospital in the nearby coastal town of Nahariya. Israeli censorship rules do not allow media to report where, specifically, rockets fired from Lebanon land in Israel. The rocket exploded in a mostly Christian, Arab village in the Galilee region, leaving a large groove in the ground next to a house. The Lebanese officials said Israel

20 responded by firing at least six shells on villages in the area where the rockets had been launched. They spoke on condition of anonymity in line with military regulations. A Lebanese army spokesman said Israel fired eight artillery shells on villages in the area where the rockets had been launched. They spoke on condition of anonymity in line with military regulations. There were no reports of injuries in Lebanon.

Lebanese Prime Minister Fouad Siniora condemned both the rocket attack on Israel and the Israeli retaliation. In a statement Saturday, Siniora said the rockets fired from south Lebanon "threatened security and stability" in the region and violated a U.N. resolution that ended the Israel-Hezbollah war in 2006. He also condemned the Israeli firing of shells on Lebanese territory, calling it "an unjustified violation of Lebanese sovereignty." No one has claimed responsibility for the rocket firing.

Suleiman: Israel has no pretext to launch war against Lebanon

Lebanese President Michel Suleiman said that Israel has no right according to the international law to use the rocket launching from Lebanon as a pretext for a war against Lebanon. In an interview published Sunday by the local daily al-Balad, the Lebanese president said that he denounced any act of firing rockets from Lebanon into Israel, and considered such acts to be against the Lebanese "popular and official will." Tow rockets were fired Saturday from southern Lebanon towards northern Israel ( but one of them landed in Lebanon) , prompting an Israeli response of firing back eight rockets on southern Lebanon. Firing rockets is carried out by "uncontrolled elements, and not by states," Suleiman said, blaming Israel for such acts "due to its policy of confiscating Palestinian people's rights."He affirmed that the upcoming parliamentary elections in June will take place in one day, and the sporadic security flare-ups will not hamper it. General , a key member of the Iranian and Syrian backed Hezbollah - led has called for the elections to be held in 2 days instead of one day , claiming that the Lebanese internal security forces could not handle it in one day

Social front

Lebanon makes the right move on ID cards

A recent decree by the Lebanese government has allowed its citizens to remove their religious affiliation from the identity cards. The BBC's Natalia Antelava, in Beirut, considers how the move will affect a divided country. In a country that has lived through years of civil war, and that is still deeply divided along religious lines, many see this decision as a very symbolic, and a very important step towards much needed unity and national reconciliation. Plenty of people in Lebanon still remember the days when the ID cards they carried served as potential death warrants. During the civil war, which lasted through the 1970s and 1980s, different militias aligned with various religious groups would set up checkpoints and ask for the identity cards of those who tried to pass. People would often be shot on the spot if their documents revealed the "wrong" sort of religious affiliation.

21 ISRAEL AND PALESTINE

Report of Amnesty international

Amnesty urges arms embargo on Israel

The human rights group Amnesty International called on the United States to stop weapons sales to Israel and on all countries to impose an arms embargo on both Israel and the Palestinians. "As the major supplier of weapons to Israel, the USA has a particular obligation to stop any supply that contributes to gross violations of the laws of war and of human rights. The Obama administration should immediately suspend US military aid to Israel," said Malcolm Smart, Amnesty's Middle East director. He also called on the "UN Security Council to impose an immediate and comprehensive arms embargo on Israel, Hamas and other Palestinian armed groups." The London-based group, which operates in 150 countries, targeted both Israel and Hamas in the 38-page report it issued late Sunday night. In this report, Amnesty focused on the issue of arms sales, and explained that due to a 10-year agreement lasting until 2017, the US was due to provide $30 billion in military aid to Israel. Its use in Gaza was in violation of US and international law, the report charged. "Israeli forces used white phosphorus and other weapons supplied by the US to carry out serious violations of international humanitarian law, including war crimes. Their attacks resulted in the death of hundreds of children and other civilians, and massive destruction of homes and infrastructure," said Donatella Rovera, who headed Amnesty International's fact-finding mission to southern Israel and Gaza. Amnesty researchers found fragments and components of munitions used by the IDF - including many made in the US - littering school playgrounds, in hospitals and in people's homes, according to the report. They also found remnants of a new type of missile, seemingly launched from unmanned drones, which releases large numbers of tiny sharp-edged metal cubes, each between 2 and 4 square millimeters in size. Rovera also charged that Hamas and the Palestinians had committed war crimes against Israel by firing rockets at Israeli civilians along the southern border. Israel initially denied using white phosphorous during Operation Cast Lead but has since stopped denying it and is investigating the matter. The Foreign Ministry issued a sharp attack on the report prior to its publication and said it was a "tendentious description of reality that doesn't rest on objective and professional criteria." The statement stressed that the weapons Israel had

22 used during Operation Cast Lead were compatible with international law. The statement said Israel had never intentionally targeted civilians, and testimony to the contrary in the report had come from "interested parties, under Hamas influence." The ministry took Amnesty to task for its comparison of the supplying of arms to Israel to the supplying of arms to Hamas.

According to the Foreign Ministry, the report ignores the basic fact that Hamas is a terrorist organization that is so recognized by the US, the European Union and other countries. The statement also took Amnesty to task for not mentioning Hamas's uses of civilian shields, something it knew would lead to civilian casualties during combat. "Hamas openly and in an organized fashion uses women and children to protect military targets, and booby-traps homes and public buildings," the statement read. While mentioning the rocket fire on Israel, the ministry said the Amnesty report ignored its scope - the fact that some 10,000 rockets and mortars had been fired at Israel over the last eight years. In advance of the report, Gerald Steinberg, the executive director of NGO Monitor, said, "This report is clearly part of a campaign to deprive Israel of the means to defend itself. This is another example of Amnesty's double standards and anti-Israel bias exploiting the language of international law." "Amnesty's reports on Israel are often based on inaccuracies, half-truths and unverifiable allegations from so-called eyewitnesses, and reflect a lack of serious credible research capabilities," Steinberg said. "In 2002, an Amnesty 'expert' first confirmed the nonexistent Jenin 'massacre,' and in the 2006 conflict with Hizbullah, many of Amnesty's claims were later shown to be unsubstantiated. The factual errors are amplified by inaccurate statements using the rhetoric of international law, using terms such as 'disproportionate' and 'war crimes,' which they apply far more to Israel than to groups such as Hamas. This ideologically biased pattern was repeated in the recent Gaza conflict."

Political front

PALESTINIANS AGREE TO FORM UNITY GOV’T

Rival Palestinian groups agreed to set up a unity government by the end of March after reconciliation talks aimed at ending long-running factional feuding, Palestinian officials said. The agreement, which could lead to the creation of a Palestinian government acceptable to the international community, was announced by officials from two Palestinian factions involving in the Cairo-sponsored dialogue. Jamil Al-Majdalawi, an official with the leftist Popular Front for the Liberation of Palestine, told AFP the factions had formed several committees that would pave the way for the unity government. His comments were confirmed by Mohammed Al-Hindi, deputy leader of the Palestinian Islamic Jihad. The reconciliation talks opened after the main groups Fatah and Hamas

23 agreed on confidence-building measures to resolve the fate of prisoners detained by both sides and stop a war of words being played out in the media. The stakes are high as billions of dollars of funds to rebuild the Gaza Strip after Israel’s war on the territory may be available if terms set by international donors can be met before an aid meeting next week in Egypt.

Olmert names two officials to replace Gaza pointman

Outgoing Prime Minister Ehud Olmert has named two senior officials to replace Amos Gilad, who was suspended as Israel's pointman for Gaza truce talks, public radio said. Yuval Diskin, the head of the Shin Beth internal intelligence agency, and Shalom Turjeman, a senior Olmert aide, will now handle talks with Egypt on efforts to forge a Gaza truce and to stop arms smuggling, it said. The outgoing premier has faced criticism that firing Gilad will hamper efforts to conclude a long-lasting truce with Hamas following the December-January Gaza war. Gilad is an experienced senior defense ministry official who clinched a six-month truce between Israel and Hamas in June, and has been shuttling between Israel and Egypt for weeks to try to forge a lasting truce to replace the shaky Jan. 18 ceasefires that ended the 22-day offensive. On Sunday Olmert removed Gilad from his duties after he was quoted scathingly criticizing the premier for changing his position in the truce talks, by seeking the release of captured Israeli soldier Gilad Shalit in any ceasefire. Gilad said adding this condition to the negotiations at such late stage in an insult to Egyptians.

Palestine still in good shape

As bad as the economy may be in other areas, things are still going pretty well in Palestine, Mayor Carolyn Salter said during Monday night’s city council meeting.

“Our local economy is actually in fairly good shape, as is the State of Texas, considering the state of many other states, especially California, Florida, Nevada and New York,” Salter said. “They’re really going through some very difficult times. Probably the worst place to be is in Michigan.” In a brief slide presentation, Salter said that the diversity of the economy locally was better than in other areas currently feeling pinched. “We are fortunate to have a diverse economy,” Salter said. “East Texas is not in a bad position right now. There are still jobs available here for people with the training and the proper work ethic.”Most of the jobs locally are governmental, health care-related, Wal- Mart-related and small businesses, she said. In addition, the local sales tax revenues have remained stable and development has continued to go forward, she said, listing several construction projects such as the new dollar store being built at the corner of Crockett Road and Village Street, the Hampton Inn and Comfort Inn being built along the South Loop 256 corridor, the small shopping center going in on Old Elkhart Road by Wal-Mart and a new building for the Social Security office. Also on Monday, the council approved a deal to work with the Palestine Economic Development Corp. during the design and construction phases of a 12-inch water line on S. Sycamore Street that would help with water pressure issues along the South Loop area. PEDC will contribute up to $75,100 to pay for the design of the water line and will also help to find alternative funding sources,

24 such as grants, to help cover the cost of construction of the line itself and of further phases, including a one-million-gallon water storage tank to be built in the business park. The tank alone is projected to cost around $3.08 million and is needed to help alleviate water pressure concerns as growth continues in the area.

PA bans Nablus panel on Palestine Liberation Organization

The Palestinian Authority banned a planned symposium on the Palestine Liberation Organization scheduled for in the northern West Bank city of Nablus. The panel was scheduled to be held at the Hawwa Center for Culture and the Arts, in association with the Federation of Civil Society Organizations in Nablus, which is the largest city in the occupied West Bank. The decision to ban the panel came from the PA’s Interior Ministry, based in Ramallah, under the pretext that the federation is an “unlicensed entity.” According to the director of the Nablus Interior Minister Office, Ibrahim Salama, the decision “had no political dimensions at all, but had to do with [the federation] being an illegal entity.” He also said the Hawwa Center should not be organizing political activities, according to its own bylaws. But the head of Civil Society Organizations, Samir Anabtawi, said the decision to ban the panel amounted to “oppression of public freedom.”

Palestine Abbas for Including Hamas

The Palestinian National Authority (PNA) President Mahmud Abbas asserted in this capital that the Islamic Resistance Movement (Hamas) should be part of the future government of Palestine. Hamas is part of the people, and as such, it should be represented in the National Unity Government, said Abbas, who met today the Czech head of State Vaclav Klaus, on the second day of his visit to this country. Acording to the PNA president, the new Palestinian Executive will be in charge of organizing the legislative and presidential elections, planned to be held the current year after the summer. Abbas expects a unity Executive to be elected, able to resume the peace process with Israel, respecting the rules and international commitments. He also asserted that reconstruction of the Gaza Strip would not be possible without a united Palestinian administration. That coastal enclave was attacked from December 27, 2008 until January 18, 2009, with the objective of annihilating Hamas, with a high cost to the civil population.

Social front

PLO Protests against Israeli Decision to Demolished Silwan Neighborhood

The Palestinian Liberation Organization called on Monday for protests against the in Jerusalem. At a press conference yesterday in the central West Bank city of Ramallah, Yasser Abed Rabo, the head of the executive committee of the PLO called for a general stick next Saturday as a first step of actions to be taken by the Palestinians against the latest Israeli decision. Israeli announced on Sunday that it has plans to evacuate the entire

25 Silwan neighborhood and demolish 80 houses that is the home to 1500 people. A park of flowers and trees, breezeways and cafes: this is the Israeli blueprint to cover the ruins of Silwan, Israeli sources on Sunday said. The issue is not new as reported by Fakhri Abu Diab, a member of the Committee for the Defense of the Territory of Silwan and Director of Al Bustan Center. In 2000 Israel issued demolition orders for all of the houses on grounds of no licensing. However the popular resistance confronted the order including with a solidarity tent, media campaign and demonstrations. Abu Diab was among those who engaged in legal proceedings to stop the demolition. With a team of engineers all Israeli requirements were met yet they were still denied.

Turkish anti-Israel mini-series aired

A new Turkish television miniseries being broadcast throughout the Arab world depicts Israel supporting the Turkish mafia to spread prostitution and drugs throughout the country. The series comes a month after relations between Israel and Turkey hit a nadir after Prime Minister Recep Tayyip Erdogan, who has been a leading and vitriolic critic of Israel's recent military offensive against Hamas in Gaza, stormed out of a panel discussion with President Shimon Peres at the World Economic Forum in Davos, Switzerland. A clip of the miniseries was aired on Israel's Channel 2 TV news on Tuesday night. The Turkish Jewish community recently said there were several Turkish TV programs that contained "harshly anti-Semitic rhetoric." It also comes a little over a week after the Turkish Foreign Ministry called in Israeli envoy Gabi Levy to protest reports that IDF OC Ground Forces Command Maj.-Gen. Avi Mizrahi sharply criticized Erdogan in a newspaper interview for his harsh condemnation of Israel during the Gaza operation. IDF Chief of General Staff Lt.-Gen. Gabi Ashkenazi has since apologized to his Turkish counterpart for Mizrahi's criticism.

Security front

ISRAEL'S LIVNI WARNS OF ANOTHER GAZA OPERATION

Foreign Minister Tzipi Livni warned that Israel would launch another military "operation" in Gaza if the alleged smuggling of arms from Iran to the territory's Hamas rulers continues. "Iran must be made aware that the weapon smuggling to Syria, Lebanon and Hamas constitutes a severe violation of international agreements, and must cease," Livni said. "If the weapons smuggling to Gaza continues Israel will have no other option than to initiate another defensive operation," she said. Israel has long accused its arch- rival Iran of supplying weapons to Hamas via hundreds of smuggling tunnels beneath the

26 porous Gaza-Egypt border, charges Tehran has always denied. One of Israel's key conditions for ending the fighting was a complete halt to arms smuggling into Gaza, and in the past month its warplanes have repeatedly struck the border area in a bid to blow up tunnels.

OLMERT SACKS LEAD NEGOTIATOR ON GAZA TRUCE

Prime Minister Ehud Olmert has sacked his lead negotiator on a Gaza Strip truce for publicly criticizing the Israeli leader's handling of the talks, Olmert's office said a move that threatens to set back the already troubled contacts. The removal of Amos Gilad comes at a critical juncture. Olmert hopes to wind up a ceasefire deal and win the release of a captured Israeli soldier before his term ends within a few weeks. His designated successor, Benjamin Netanyahu, says Israel halted its Gaza offensive too soon and must topple the territory's Hamas rulers. Gilad, a veteran Defense Ministry official, objected to Olmert's recent demand that Palestinian Hamas free Sgt. Gilad Shalit before Israel signs a truce agreement cementing the shaky ceasefire that ended Israel's recent war on Gaza. Gilad made his opinions known in an interview last week with the Maariv newspaper. Officials in Olmert's office said a longtime adviser to the prime minister, Shalom Turgeman, would replace Gilad on the truce talks. Defense officials said veteran negotiator Ofer Dekel, who brokered a recent prisoner swap deal with Lebanese militants, would handle efforts to free Shalit, snatched by Hamas-affiliated fighters during a 2006 raid into Israel. The officials spoke on condition of anonymity because of the sensitivity of the talks. There was no immediate reaction from Gilad or Egypt. Olmert, who is the focus of corruption allegations, will step down after a new government is formed. The Egyptian-mediated negotiations would likely falter if they're not wrapped up by the time Netanyahu takes power within the next few weeks. Gilad's strategy had been to clinch a truce first, then strike a deal to swap Shalit for hundreds of Palestinian prisoners that Israel holds. But last week, Olmert abruptly announced that Israel would not reopen Gaza's long-blockaded borders — the main Israeli concession in any truce — until Shalit were freed. Hamas is desperate to reopen the borders to start repairing the vast destruction from the Israeli onslaught and end almost two-years of crippling blockade enforced by the Israelis. But it objects to linking the prisoner exchange to the truce negotiations.

RAFAH CROSSING OPENED FOR PALESTINIAN STUDENTS AND PATIENTS

The Rafah border crossing was opened Sunday to allow Palestinian students, patients and residents of other countries to cross through via Egypt, according to sources in the area. About 1,000 people were expected to pass through on Sunday, half students and the other half third-country residents, but the slow pace of the entry procedures at the gate meant that only 150 had passed through at press time. The crossing is due to be open until Tuesday, according to the Hamas official responsible for the crossing from the Gaza side, Adel Zoroub. Zoroub stated that there were about 800 patients due to cross into Egypt on Monday for treatment, although 200 of them had still not been issued passports by the Palestinian Authority (PA). Egypt had closed the crossing earlier this month after having

27 kept it open for humanitarian purposes during Israel’s 22-day offensive on the Gaza strip Dec. 27. During the attacks, Palestinian patients were allowed into Egypt and aid was sent to Gaza through Rafah. The sudden recent opening of the crossing may be related to Egypt’s intention to begin unity talks for Palestinian factions on Wednesday. The talks had been scheduled to begin Sunday but were postponed due to the setbacks in the truce talks between Israel and Hamas. Fatah spokesman Fahmi Az-Za’arir said, “The movement welcomed this development and will attend the meetings of the dialogue out of the belief that the huge challenges faced by the Palestinians need unity and the empowerment of the internal front,” recalling that Fatah had called for not linking the truce with dialogue so that Israel would not control the Palestinian dialogue indirectly. Hamas official Ayman Taha also welcomed the talks.

RAFAH CROSSING REMAINS OPEN BUT SECURITY TIGHTENED AFTER CAIRO BOMBING

The Rafah border crossing remained open for the third day running to allow Palestinians to come in from Gaza and others to return to the strip. About 1,153 Palestinians have entered Egypt since the crossing opened Sunday. They were mostly students heading to their countries of study, medical patients seeking treatment in Egypt and holders of residencies in other countries. Additionally, 380 Palestinians have been allowed to return to Gaza through the crossing since Sunday. Many of these are patients who have already been treated in Egypt, or stranded Palestinians who have been unable to return because the crossing was closed. On Monday, a European delegation headed by President of the European Parliament Hans-Gert Pottering entered Gaza through the Rafah crossing in a fact-finding mission on Gaza in the wake of the 22-day Israeli offensive on the Strip.

Geo strategic front

Turkey: Israel should recognize Palestine

Israeli prime minister-designate Benjamin Netanyahu should recognize Palestine as a state if Israel genuinely wants lasting peace in the Middle East, Turkish Prime Minister Recep Tayyip Erdogan said Monday night. Keeping up his fierce criticism of Israel's military operations in the Gaza Strip, Erdogan said the only solution to the problem is for Hamas to be brought to the negotiating table. "The answer is a two-state solution," Erdogan said in a panel interview including Deutsche Presse-Agentur dpa during a flight to Ankara, after local election campaigning in the south-eastern city of Mardin. "Hamas has to recognize Israel, but at the same time Israel has to recognize Palestine. Does Israel recognize Palestine? They still don't, but at the same time they expect Palestine to recognize Israel. Ask Netanyahu, will he accept this?" Erdogan repeated his accusation that Israel's actions in Gaza were a "crime against humanity" and again accused Israel of using overwhelming force in the operations.

28 South African workers’ solidarity with Palestine

We, the Palestine Solidarity Committee, believe the action by South African Transport and Allied Workers Union (SATAWU) members in Durban [by refusing to unload an Israeli ship--WW] indicates a new phase in Palestinian solidarity in South Africa. Workers have put international solidarity above their own interests and are determined to persist with this action. This action has also spurred other COSATU unions to consider their roles within COSATU’s Boycott, Divestment, Sanctions (BDS) call. Commercial workers, for example, are discussing how they might join in. BDS has now become a reality in South Africa, in a manner which will have a real impact on Israeli interests. Palestinian solidarity is the better for it; South Africa is the better for it. We salute the SATAWU members, and all the workers of COSATU for their determined support of the Palestinian people.

Iran urges world support for Palestine

Iran's Parliament Speaker calls for support on the Palestinian issue and criticizes what US officials call their policy change on Palestine. "It is a necessity for Islamic and non- Islamic countries to support the rights of the Palestinians," Ali Larijani said addressing members of the international conference in support of Palestine. The senior Iranian official further asked Islamic countries to follow the Palestinian issue prudently. The parliament speaker also criticized what US officials call their policy change on Palestine. "If you recognized the rights of the Palestinians and they settled in their own land, we can say your change was a real one, otherwise it is propaganda.” He also declared that the Islamic Republic adopted an established and unchanged strategy on Palestine after the Islamic Revolution in 1979. Larijani concluded that Iran will host an international conference in support of Palestine to help resolve the Palestinian's problems. The conference, will meet under the banner 'Palestine: Manifestation of Resistance, Gaza: Victim of Crimes' in Tehran on March 4-5.

Cuba, Palestine FMs Foster Links

Riad N. A. Malki, Minister of Foreign Affairs of the Palestinian National Authority, is to meet Thursday with his Cuban peer Felipe Perez Roque, to foster bilateral links. On his first stay in Cuba, Malki invoked world solidarity for Palestine in its struggle to become an independent state this year. In a solidarity act held at the Cuban Institute of Friendship with the Peoples (ICAP), the visitor denounced that the United Nations has not yet solved a problem it created 60 years ago when dividing Palestinian territory. Malki stated that the negotiation process with the Israelis started in 1991, although it is still stagnated because Tel Aviv manipulated it and imposes occupation conditions. ICAP president Jorge Marti called the UN to play its role so that Israel gives back the occupied territories, and praised Egypt's solidarity, offering a hand to alleviate pain of the Palestinian people. Malki arrived in Cuba Wednesday from Mexico, where he met with Secretary of Foreign Affairs Patricia Espinosa. According to a release from the Mexican

29 Foreign Affairs Ministry, both officials talked on the situation currently gripping Gaza Strip, and accords of the Annapolis Conference, held in 2007.

Fayyad Says PA Need 2.8 billion US dollars for Gaza Reconstruction

The Palestinian Authority (PA) must raise 2.8 billion US dollars at a donor conference in Egypt next month if it is to meet its goals in rebuilding the Gaza Strip, caretaker Palestinian Prime Minister Salam Fayyad said on Wednesday. Fayyad, speaking at a press conference at PA headquarters in the West Bank city of Ramallah, said that his government has prepared a document detailing all that is needed for reconstruction and economic recovery in the Gaza Strip.

Hamas and Fatah Agree to Stop Arrests, Smear Campaigns

The third session of talks between Hamas and Fateh movements ended in Cairo on Wednesday after the two movements agreed to resolve some of the conflicting issues between them, mainly releasing political prisoners held by the two sides in Gaza and the West Bank. Both movements said that there are some positive indications that would ensure the success of internal dialogue between all factions. Azzam Al Ahmad, head of the Fateh Parliamentarian bloc, and senior Hamas leader, Mahmoud Al Zahhar, held a joint press conference and confirmed that the two sides has agreed to stop all smear campaigns. Al Ahmad added that his movement wants to end the file of political prisoners, and stop all violations in the West Bank and the Gaza Strip in order to achieve national unity. Fateh leader, Ahmad Qurea’, and Hamas political bureau member, Mousa Abu Marzouq, headed the meeting. The talks, maintained and supervised by the Egyptian Intelligence Chief, Omar Suleiman, were focused on the release of all political prisoners and stopping smear campaigns. Izzat Al Rishiq, member of the Hamas political Bureau, said that the aim behind these talks is to create a momentum and a positive atmosphere between Hamas and Fateh. The Palestinian Authority in the West Bank released 42 Hamas prisoners and vowed to release more prisoners in the coming period. Hamas described the step as positive but also described it as insufficient.

Palestinian rocket fired into Israel: military

A rocket fired from the Gaza Strip by Palestinian militants exploded in southern Israel on Saturday, but caused no damage or injuries, a military source said. The rocket exploded in an industrial zone in the Israeli city of Ashkelon, the source said. Rocket attacks have occurred despite a ceasefire declared January 18 after a three-week Israeli offensive on

30 the Gaza Strip that killed 1,330 Palestinians. Earlier Saturday, Israel shelled southern Lebanon after a rocket slammed into its territory in a tit-for-tat exchange of fire across their tense border, sources on both sides said.

Israel's new Iran policy: Sway Obama on Tehran talks The latest International Atomic Energy Agency report was greeted with ennui by the Israeli media, deemed not especially exciting compared to the twists and turns of coalition talks or the tongue-lashing Prime Minister Ehud Olmert gave Defense Ministry official Amos Gilad. But the political and security echelons' attitude to the report, which states that Iran has managed to accumulate a ton of enriched uranium and is heading quickly toward a nuclear bomb, is a different story. The report confirms the assumption, shared for some time by the intelligence services of Israel, the United States and Europe, that Iran is closer to the bomb, with mid-2010 as the likely date it will reach its goal. Iran was a major topic of conversation between Defense Minister Ehud Barak, Israel Defense Forces Chief of Staff Gabi Ashkenazi, and U.S. senators John Kerry and Joe Lieberman on their recent visits to Israel. From Israel's perspective, President Barack Obama is a key player in the Iranian drama. Although Obama has more urgent things on his agenda - first and foremost among them the rehabilitation of the U.S. economy - Iran will be his first major foreign-policy test. Israel regards Obama's decision to talk to Tehran about its nuclear program as a done deal. What it is trying to do, in a low-profile way, is to impact the way the Americans reach the point of dialogue. In his lecture last week to senior IDF officers, Barak sketched the outlines of the Israeli approach in the coming months. Israel hopes that potential U.S.-Iranian talks will be relatively short-term, and harbors few illusions about a positive outcome. When and if talks fail, Israel would expect the U.S. to head an international move for immediate and harsher sanctions, this time effectively involving Russia, China and India. The assumption is that Obama will find it easier than Bush to urge the world to pressure Iran, especially after he shows he has taken dialogue as far as it can go. Israel would prefer for the Americans to condition their talks with Iran on freezing uranium enrichment during the talks. The oversight system now allows reasonable follow-up on whether Tehran is meeting this condition. In the 15 years of Tehran's contacts with the international community, it has proven itself a master of deception and delay and Israel is concerned that the Iranians will use the dialogue as a feint, while steadily moving closer to a bomb. But it is difficult to imagine Iran agreeing to this condition, similar to the one it rejected when the Bush administration proposed it. And if all efforts fail? Barak told the cabinet yesterday that "Israel will take no option off the table." The

31 commander of the Israel Navy, Maj. Gen. Eliezer Marom said in a rare statement yesterday: "An axis of evil coordinated between Iran, Syria, Hezbollah and Hamas will require Israel to wage a campaign against it that will require our best efforts and abilities." The General Staff is divided about the practical chances of such a campaign if Israel goes it alone, without coordination with and assistance from the United States. The Israeli statements illustrate that the Middle East is beginning to move according to a new schedule: elections in Iran and in Lebanon in June, U.S.- Iranian talks and perhaps sanctions. Attention in Israel is gradually being directed eastward and northward, toward the possibility of a renewed front with Hezbollah and perhaps even with Syria. That is one of the main reasons the General Staff supports a cease-fire with Hamas in the south that would also include the release of kidnapped soldier Gilad Shalit. Israel is about to have more pressing problems. EGYPT Political front

Egyptian dissident 'surprised' to be freed, vows to rebuild party

Egypt's best-known political dissident Ayman Nour said that the decision to release him from prison came as a surprise and that he hoped it was not the result of foreign pressure. "I was surprised by my release," Nour, 44, told a news conference a day after the authorities ordered his release from prison after more than three years behind bars. Nour said he did not know why he was set free on Wednesday. A judicial source had said Egypt's public prosecutor decided to release the diabetic Nour on health grounds. On Wednesday, hours after his release, Nour, in apparent good health, told a scrum of journalists at his Cairo home: "I was released today without agreements or conditions." During his time in prison, Egypt's reform movement has largely collapsed, security forces are cracking down heavily on political activists and no opposition parties are strong enough to challenge Mubarak. Nour's Al-Ghad party has fragmented in a leadership battle that turned violent last year, with one faction burning parts of the party headquarters in a clash.

Washington had been sharply critical of Nour's arrest and detention and repeatedly called for his release, although public US criticism of the case that raised tensions with key regional ally Egypt eased off in recent months. However, Nour's release came less than a week after Egyptian Foreign Minister Ahmed Aboul Gheit visited Washington as the first Arab foreign minister to meet Secretary of State Hillary Clinton since President Barack Obama took office. Asked if he thought his release was the result of US pressure, Nour said: "It would not please me if my release was because of foreign pressure." He also insisted that he had "no contact with any foreign group" during his time in jail, and said: "We are not US agents." Nour also urged Obama to ensure that his administration places the public interest over state relations.

32 Geo strategic front SAUDI ARABIA REPLACING EGYPT AS REGIONAL LEADER, SAYS REPORT

Saudi Arabia has replaced Egypt as the regional leader, according to a recent US National Intelligence Council report. The report, “Saudi Arabia, Egypt and Jordan: Policies on Regional Issues and Support for US Goals in the Middle East,” was issued based on a conference that brought together Middle Eastern scholars and specialists in June to discuss changes in regional dynamics and the views of Saudi Arabia, Egypt and Jordan regarding their alliances with the US. The National Intelligence Council sponsors conferences and workshops with nongovernmental experts to gain knowledge and insight and to sharpen debate on critical issues; however, the views expressed in their reports do not reflect official US government positions. Although the conference was held last summer, the report was only recently released after US President Barack Obama was elected and senior intelligence officials in his administration took office. Participants said the decline in Egypt’s leadership could be attributed to several reasons. Egypt does not enjoy the comparative advantage it once did, the report also said, as other states in the regional have massive revenues from oil and other regional economies have improved faster. Finally, the report finds that Egypt no longer has an attractive political or economic model to offer the rest of the region. On the other hand, participants noted that Saudi Arabia’s reluctant leadership has not been very effective, nor have Riyadh’s massive cash reserves done much to increase its influence.

FATAH AND HAMAS 'BREAK THE ICE' IN EGYPT

Palestinian rival groups Fatah and Hamas held a series of "icebreaking" meetings ahead of wider reconciliation talks aimed at repairing the gaping rift between the two groups, members said. The discussions, mediated by Egyptian intelligence chief Omar Suleiman, focused on releasing detainees and ending the negative media campaigns each side is waging against the other. Hamas politburo member Izzat Rashaq said the idea was to create a positive atmosphere between the two groups. Azzam Al-Ahmed, of Fatah delegation, described the talks as "very positive, deep and tackled all issues of conflict," and expressed hope they would end "the state of divisions." Distrust between Hamas and Fatah runs deep after a three-year power struggle, including a civil war that ended with Hamas' violent takeover of Gaza in 2007, leaving President ' Fatah only in charge of the West Bank. Hamas claimed Abbas' government ran a Gaza spy ring that fed Israel information about Hamas targets during the fighting. Fatah accused Hamas of killing and wounding dozens of Fatah activists under the cover of the war. Top Palestinian officials Ahmed Qureia of Fatah and Moussa Abu Marzouk of Hamas led the

33 preliminary meetings ahead of Thursday's main reconciliation discussions. In a goodwill gesture, Fatah released 42 Hamas detainees in the West Bank and promised to release more. Rashaq of Hamas hailed the step but described it as not enough. Palestinian representative in Egypt, Nabil Amr, said Abbas is considering releasing more Hamas detainees, but those being held in West Bank prisons are "security" detainees, rather than political prisoners.

EU monitors ready to get back to work

European monitors are ready to resume their assignment on the Gaza-Egypt border at a moment's notice, following an involuntary 20-month break, the head of the mission said. In the past two weeks, 20 monitors returned to the region amid reports of progress on a Palestinian power-sharing agreement and an Israel-Hamas prisoner swap — prerequisites for reopening the Gaza-Egypt border. For months, the European Union Border Assistance Mission (EUBAM) had operated with a scaled-back staff of 18. The European monitors were deployed at the Rafah passenger terminal between Gaza and Egypt as part of a 2005 agreement between Israel and the Palestinian Authority of moderate President Mahmoud Abbas. The monitors were to reassure Israel that weapons and militants wouldn't get into Gaza after its pullout from the territory in the fall of 2005.

Hamas and Fatah meet in Egypt

Fatah and Hamas, the rival Palestinian groups, have held unofficial meetings in Cairo, Egypt's capital, ahead of a reconciliation conference scheduled for Thursday this week.

Wednesday's meetings, the latest in a series held in the past few weeks, will help pave the way for national dialogue, Nabil Amr, the Palestinian ambassador in Cairo, said. The two groups agreed to resolve the fate of prisoners held by both sides "in a timeline not going beyond the end of the inter-Palestinian dialogue meetings," a joint statement they released said. "A certain number of detainees will be freed right at the beginning of the dialogue," said the statement from Azzam al-Ahmad, leader of the Fatah bloc in the Palestinian parliament, and Mahmoud Zahar, a senior Hamas official.

Hamas members freed

The statement said: "Other detainees will be freed successively so that this issue will be totally closed before the end of the national Palestinian dialogue.”Zahar said 80 Hamas members held in the West Bank, which is controlled by Fatah, have been released and that 300 were still being held. A planned unity government by Fatah and Hamas will deal with foreign governments, co-ordinate reconstruction in the Gaza Strip and prepare for Palestinian presidential and legislative elections.

Mideast states condemn Cairo bombing

34 Saudi Arabia and other nations in the Middle East on Monday joined France in condemning a deadly bombing at a famed Cairo bazaar that killed a French teenage tourist and wounded 24 people. Saudi Arabia also expressed its hope for stability and security in Egypt, a major tourist destination in the troubled Middle East which has been hit by a string of deadly attacks in recent years. French President Nicolas Sarkozy expressed "deep sorrow" over the attack, while Prime Minister Francois Fillon said the French government "strongly condemns this criminal act whose blind violence shows its absurdity." The Syrian foreign ministry called the bombing a "terrorist attack." Iranian foreign ministry spokesman Hassan Ghashghavi also denounced the attack and said it served Israeli interests. The head of Cairo's Al-Azhar University — Sunni Islam's highest religious authority —Sheikh Mohamed Sayyed Al-Tantawi said the bombing "distorted the image of Islam."

Egyptians hurt in Gaza contraband fuel blaze

Two Egyptians were injured when contraband fuel destined to be smuggled into the besieged Gaza Strip burst into flames, a security official said. About 2,000 liters of fuel had been stored in a house in Sarsuriya, near Egypt’s border with the impoverished Palestinian territory, the official said. The fuel was to have been smuggled through an underground pipe, he added. Goods are routinely smuggled into Gaza through tunnels from Egypt. Israel, which blockaded the Strip after Hamas seized power there in June 2007, has asked Egypt to end the traffic. Egypt denies arms are smuggled from its territory. The tunnels have been the lifeline to Gazans during the blockade, through which essential goods were smuggled into the territory. Earlier this month, Egyptian police raided a farm near the border with Israel that was used for storing goods including refrigerators, canned food and even motorbikes.

AFRICAN UNION, US CONDEMN DEADLY ATTACK IN EGYPT

African Union president Jean Ping and US officials have denounced the attack in Cairo that killed a French teenager and wounded 25 other people, most of them foreign tourists. Ping condemned the "blind violence" of the weekend attack in a statement issued from the African Union's headquarters in Addis Ababa late Monday. Meanwhile, US State Department spokesman Robert Wood said, "We strongly condemn this terrorist attack in Cairo." Sunday's bomb blast ripped through a square lined with cafes and restaurants in Khan El-Khalili, a market dating from the 14th century that is one of the Egyptian capital's main tourist attractions. Those wounded in the bombing included four Egyptians, 17 French tourists, a German national and three Saudis. Egyptian police on Monday arrested three suspects in connection with the attack.

Egypt: FM Spokesman: Egypt to pursue efforts in Palestinian reconciliation

Foreign Ministry Spokesman Ambassador Hossam Zaki told that both Fatah and Hamas movements are serious in ending their rivalry and reaching Palestinian national

35 reconciliation in the Egypt-hosted dialogue scheduled for Thursday 26/02/2009. Hossam Zaki called on major Palestinian factions to stand up for their responsibilities and believe their interest will be in their unity. "Egypt's painstaking efforts will prove futile unless the Palestinians realize the rivalry will damage their cause," Zaki said. "If this happened, they could not pay the compensation for the damage."Moreover, a senior Egyptian official said the Palestinian dialogue will kick off on Thursday 26/02/2009 with the participation of all Palestinian factions and some independent figures.

Economic front

Egypt recalls trade delegation from Israel

Egypt decided to recall a trade delegation that was visiting Israel Thursday in what was interpreted as a protest against tying the fate of captive Israeli soldier Gilad Shalit to the opening of the Rafah crossings into Gaza, the Israeli press reported. A delegation from the Egyptian foreign ministry in Israel to discuss commercial relations in Jerusalem with the Israeli Ministry of Trade and Industry was called back to Cairo. The Israeli cabinet had decided Wednesday against reopening any of the crossings into the Gaza Strip unless Hamas released Shalit. Israel’s insistence to include the fate of Shalit in Egypt’s arbitration efforts with Hamas has been met with resistance from Egypt and from within Israel itself. Foreign Ministry spokesman Hossam Zaki had said that linking Shalit’s fate to the prospects of a long-term truce with Hamas would “hinder any chances for a ceasefire.”Israeli defense Ministry official Amos Gilad who is responsible for liaising with the Egyptians over the ceasefire also stated that linking Shalit to the truce might alienate Egypt which he considered an ally Israel should not lose. The Israeli newspaper Haaretz reported that Egypt’s ambassador to Israel had contacted the Israeli foreign ministry and told them that recalling the delegation was not a politically motivated move, but rather a technical one. He had also said that the delegation would return next week. However, Haaretz had also reported that the Egyptian delegation said that they had to return, explaining “this is an order from up high, and we must abide.” He added that this could have been done to object against the Israeli cabinet’s decision.

Social front

Egypt hints at compromise on ICC prosecution of Sudan president

The Egyptian foreign minister Ahmed Aboul-Gheit today expressed concern over a possible arrest warrant issued by the International Criminal Court (ICC) for Sudanese president Omer Hassan Al-Bashir. Next week the ICC judges are set to decide on an application by prosecutor Luis Moreno-Ocampo filed last July requesting the issuance of an arrest warrant for Bashir on three counts of genocide, five of crimes against humanity and two of murder. Ocampo accused Al-Bashir of masterminding a campaign to get rid of the African tribes in Darfur; Fur, Masalit and Zaghawa.However the Egyptian official suggested that a compromise is possible between Sudan and the international community on the issue of Darfur crimes. Aboul-Gheit predicted that there will be “intense wrangling” towards an Article 16 resolution by the UNSC as well as “convincing the

36 Sudanese government to move so it can meet with the international community somewhere in the middle”. This is the first time an Egyptian official speaks publicly about the need for Sudan to undertake measures on the issue of Darfur war crimes.

Egyptian officials frequently referred to discussions made between President Hosni Mubarak and European leaders particularly French president Nicolas Sarkozy. The French government insisted that Sudan must remove Ahmed Haroun, state minister for humanitarian affairs who is wanted by the ICC for 51 counts of war crimes before any deferral of prosecution was to be considered. Sudan has refused to dismiss Haroun or investigate him but declared that it is working on prosecuting militia commander Ali Kushayb who is also wanted by the ICC. Many observers in Sudan believe that Egypt wants its southern neighbor to begin serious judicial proceedings to block intervention by the Hague based court. Egypt along with African and Arab countries are wary that ICC arrest warrant against Bashir will threaten fragile peace efforts in Darfur.

Syria

Boosting cooperation between Lattakia and a Turkish agricultural delegation on fighting fires and preservation of the forests discussed

Governor of lattakia, Khalil Mashhadia, and a Turkish agricultural delegation headed by Turkish Agriculture Minister's Advisor,Maher Kusuk, discussed ways of boosting cooperation in fighting fires , preserving forests and the project of building an advanced center for fighting fires . The Governer praised the Turkish experience in extinguishing fires which indicated an advanced methodology in dealing with forest fires stressing the readiness of the governorate to provide all required aid to build this center in Lattakia . For his part , the head of the Turkish delegation reviewed fields of agricultural cooperation between the two countries, particularly the signed agreements for combating desertification and cooperation in afforestation, expressing Turkey's readiness to exchange experiences with Syria . He talked about the Turkish experience that adopts the new technology using GPC system and the direct observation of the fire sites by cameras

Palestinian Groups and Follow-up Higher Committee stress that the success of Palestinian Dialogue is dependent on the participation of all groups

Palestinian Groups and Follow- up Higher Committee of Palestinian National Dialogue announced that the success of the Dialogue scheduled in Cairo is dependent on the participation of all Palestinian groups inside and outside Palestine, and that not inviting some groups does not serve the approaches to achieve real national unity and does not express the comprehensive representation of all Palestinian groups and movements. The plenary meeting of the Palestinian Groups and the Committee issued a statement on Tuesday which stressed that the Palestinian Dialogue should be based on clear policies away from betting on previous ones which constituted a violation of the national bases and a betrayal of the resistance option policy. The statement considered that releasing detainees from the Palestinian Cadres of the Resistance in West Bank and stopping security coordination and futile negotiations with Israel are essential steps for a

37 serious start of the Dialogue. The conferees stressed the need to speed up movement to take practical measures in order to open all crossings, break the unfair siege on Gaza, let in materials to rebuild the strip and life requirements for Palestinian People to enhance its resistance against Israeli aggression. The statement condemned the Israeli measures of Judaization of Jerusalem and attempt to demolish al-Aqsa Mosque. It also condemned the Israeli Media's offence against Jesus Christ and Virgin Mary considering it desecration of Christian and Islamic holy places.

Honoring the participant doctors in Syrian Medical delegation sent to Gaza

Doctors Union Branch in Deir Ezzor honored evening the doctors members of medical delegation sent to Gaza. Deputy Chairman of Doctors Union in Syria and Head of the delegation sent to Gaza, Dr. Safwan Kharabah, said that this participation is a national and pan-Arab duty and an attempt to support Gazan people emotionally and materially. Dr. Safwan underlined that the delegation made nearly 40 surgical operations including 20 major operations, and trained the medical and nursing staff on some emergency and medical measures. The acting Secretary of al-Baath Party Branch Taha al-Khalifa, and Deir Ezzor Governor Hussein Arnous , honored the members' delegation and highly evaluated their humanitarian roles.

President al-Assad and Emir Hamad Bin Khalifa Al Thani underline importance of realizing Palestinian reconciliation and Arab Solidarity

President Bashar al-Assad discussed with Emir Hamad Bin Khalifa al-Thani of Qatar bilateral distinguished relations between the two brotherly countries and the necessity of enhancing them in addition to the latest developments in the region, particularly the occupied Palestinians lands. During the meeting, the two Arab leaders stressed the importance of intensifying all efforts in order to realize the Palestinian national reconciliation. President al-Assad and Sheikh Hamad underlined determination to continue exerting every possible effort to achieve the Arab solidarity and consolidate it in order to protect the Arab people's interests and rights and discuss steps that should be taken before the Arab upcoming Summit due in Doha. Emir of Qatar who is on a short visit to Syria is accompanied by Premier and Foreign Minister Sheikh Hamad Bin Jassem Bin Jaber Al Thani. The visit of Emir of Qatar and his talks with President al- Assad come in the framework of boosting cooperation and coordination between the two countries towards Arab issues and activating the joint Arab action, leading to correcting the inter-Arab relations to face different challenges.

Lattakia escorts the late Abu Moussa to his final resting place in a dignified procession

Lattakia Governorate escorted on Tuesday Head of al-Baath Vanguards Organization Ahmad Abu Moussa, who passed away at the age of 70, to his final resting place. Lattakia's Governor Khalil Mashhadiya, Rector of Tishreen University Mohammad Yehia Maalla, top al-Baath Party members and a number the People's Assembly members participated in the funeral. The late Abu Moussa worked in Education and was elected as

38 an MP in the People's Assembly for six times. He was one of the founders of al-Baath Vanguards Organization and the head of the Organization till his death. The late also worked as a teacher of Andalusia Literature in Tishreen University and was a member of Writers' Union.

Aleppo and Gaziantep universities to Enhance Scientific Cooperation

Aleppo Governor, Dr. Tamer Al-Hejjeh discussed with Rector of Gaziantep University, Dr. MEHMET YAVUZ COŞKUN during a meeting held in Aleppo, aspects of cooperation between the two sides in the scientific, cultural, and medical fields and means of activating it within the framework of the regional cooperation between the two countries. The governor pointed out the social and cultural ties and the common denominators between the two friendly peoples, adding that there are new projects under study within the framework of the joint cooperation program concerning agricultural aspects for pistachio and olive oil corps and medical and scientific cooperation between Aleppo University and the University of Gaziantep.

For his part, Dr. COŞKUN reviewed the importance of the Syrian-Turkish regional cooperation program in activating the cultural and scientific relations between Turkey and Aleppo City, indicating that a joint project for medical cooperation with Aleppo University for receiving patients and offering them treatment services in the hospitals of the two cities is under study.

Kuwaiti Ambassador in Damascus describes Syrian-Kuwaiti ties as deep and strong

Kuwait, which celebrates its National Day on the 25th of February, has witnessed great achievements in development and construction process, consolidating a strong foundation for development that made Kuwait occupy a central place on the Arab and international arenas. Syrian and Kuwaiti people are bound by exceptionally historic and brotherly ties, made even more solid by the exchanged visits between senior officials in the two countries. In a statement to SANA, the Kuwaiti Ambassador in Damascus Fahad Ahmad al-Awadi underlined the importance of President Bashar al-Assad's participation in the Economic, Development and Social Summit held in Kuwait last month which gave a sense of relief to the Kuwaiti leadership. He also lauded the distinguished Syrian- Kuwaiti ties based on the mutual history, religion and friendly relations connecting the people of the two countries. The Ambassador also applauded the Kuwaiti officials' visits to Syria, particularly the participation of Emir of Kuwait Sheikh Sabah el-Ahmad al- Sabah in Damascus Summit last year, and the visit of Sheikh Nasser Muhammad al Ahmad al-Sabah , the Kuwaiti Prime Minister in February last year and the resulting agreements on the basis of consolidating bilateral cooperation in the best interests of the two brotherly countries and the Arab nation.

The Kuwaiti Ambassador also reiterated the Kuwaiti stances in support of Syria's right to restore the occupied Syrian Golan and of the Arab and Islamic causes, particularly the Palestinian cause and the necessity of ending the Israeli occupation of the Arab territories. The Ambassador described Syria as a promising country for economy and

39 investment, indicating that there is a focus on the Gulf States' investment in Syria. The Kuwaiti investment in Syria, which reached at nearly 6 billion dollars, reflects the deep Syrian-Kuwaiti relations, and the important development they witnessed at a time when Kuwait hosts a Syrian community of about 130 thousand citizens, working in the various private and public Kuwaiti institutions. Kuwait ranks third on the level of foreign investments in Syria following Saudi Arabia and Turkey. The Kuwaiti investment reached at 1.300 billion dollars.

Patriarchs of Damascus condemn Israeli media offense of Christian symbols

Patriarchs Ignatius IV Hazim of Antioch and all the East for Greek Orthodox, Zakka I Iwas of Antioch and all the East for Syriac Orthodox and Gregory III Laham of Antioch and all the East for Greek Catholic on Tuesday condemned the Israeli media offense of the Christian religious symbols, denouncing the offense of supreme religious values.

Spiritual leaders of churches and patriarchs in Damascus denounced in a statement the Israeli deliberate offense of Jesus Christ and Mary the Virgin, calling on the Israeli entity to put and end to such low behaviors which harm the feelings of Christians and the humanity as a whole.

Ottri in Iran Friday heading a Syrian delegation to the meetings of the Syrian- Iranian Higher Committee

On the invitation of the Iranian First Vice-President, Parviz Davoodi, Prime Minister Mohammad Naji Ottri pays an official visit to Tehran heading a Syrian delegation to the meetings of the Syrian-Iranian Higher Committee. Ottri is scheduled to hold talks with Iranian officials on cooperation relations and ways of developing and expanding their prospects in the economic and developmental domains. The Prime Minister will be accompanied by a governmental and economic delegation.

President al-Assad Discusses with Solana the Syrian-EU Relations and Ways of Consolidating them in the Interests of Both Sides

President Bashar al-Assad discussed with European Union High Representative for Foreign Policy and Security Javier Solana on Wednesday the Syrian-EU relations where stress was made on the necessity for moving forward in upgrading these relations and consolidating them for fulfilling the interests of the two sides and contributing to the establishment of peace and stability in the region. The latest developments on regional and international arenas , particularly the tragic situation in which the Palestinian people are living in Gaza Strip due to the latest Israeli aggression on Gaza, were discussed.

Talks focused on the combination of the Arab-European efforts for rebuilding Gaza Strip , lifting the Israeli siege, opening all the crossings , and achieving the Palestinian-Palestinian reconciliation . Solana described Syria's role as pivotal in finding solutions for the problems of the region. The meeting was attended by Foreign Minister, Walid Moallem , Presidential and Media Advisor , Boutheina Shaaban ,

40 Assistant Foreign Minister, Abdul –Fattah Ammora , and the two EU and Czech ambassadors to Syria. In this framework, Foreign Minister, Walid Moallem met Solana.

For his part, Minister al-Moallem said Mr. Solana held a constructive and fruitful meeting with President al-Assad, during which talks dealt with bilateral relations between Syria and the EU, latest regional developments following the Israeli aggression on Gaza and the necessity of confirming the cease fire, open crossing points and lifting the siege imposed on Gaza. Foreign Minister underlined the importance of realizing a Palestinian reconciliation and the importance of the currently-held dialogue in Cairo, wishing to make 2009 a fruitful year in the direction of the region's security and stability.

On the talks held yesterday with the Saudi Foreign Minister Emir Saud al-Faisal, Minister al-Moallem said "the dialogue was constructive and fruitful, and it was natural to deal with the situation in Lebanon," adding "viewpoints were identical on the importance of working to boost its security and stability and run the elections as schedule.

As for the EU's readiness to conduct a dialogue with HAMAS in light of the efforts exerted to achieve peace in the region, Minister al-Moallem said "we appreciate any possible effort exerted by the EU and we will cooperate with it in this role." On the possibility of making a progress in the dialogue with the US new Administration, the Minister said that the job of the Foreign Minister requires him to be optimistic, but the experiment has taught us to be always aware. As for the efforts of the Arab reconciliation, Minister al-Moallem said "we are going in the correct direction," underlining that President al-Assad exerts every possible effort to restore the Arab solidarity as he believes in the necessity of this solidarity to fortify the Arab stance.

Regarding his expectations on Syria's participation in the Palestinian dialogue during the coming stage, al-Moallem underlined that Syria will attend Sharm al-Sheikh conference and will be present at any conference to be held on Gaza reconstruction.

As for the possibility of achieving peace in the region in light of the coming of Obama Administration and a rightist government to the rule in Israel, the Minister said that any side who won't contribute to realizing a just and comprehensive peace according to the international legitimacy and the Land-for-Peace formula will eventually loss and fail.

Minister al-Moallem underlined the necessity of punishing Israel for its practices of genocide and war crimes that contradict the international human law. Whether his talks in Riyadh yesterday referred to the international tribunal or not, the Minister said "the issue of the international tribunal was not proposed during the talks with Saudi Minister al- Faisal, particularly because the two sides consider this issue a matter between Lebanon and the UN." On the European stance towards a Palestinian national unity government including HAMAS, Solana said "we support the efforts exerted to form a national consensus government which was referred to at Kuwait Summit and we hope this target will be achieved." As for the possibility of outlining a time for signing the Syrian-EU Association Agreement, Mr. Solana said "I couldn't give a specified time on the final date of signing the Agreement… there were very constructive talks on this agreement and a

41 number of EU officials have visited Damascus, lately the visit of Mrs. Waldner." Regarding Syria's participation in Sharm al-Sheikh conference, the EU official said "our cooperation with Syria is very constructive and I expect the Conference will come out with important commitments to rebuild Gaza."

President al-Assad issues law No. 4 on applying rules of E-Sign law

President Bashar al-Assad o Wednesday issued Law No.4 for 2009 on applying the rules of the E-Sign law and the net services. The law stipulates for establishing a general commission tilted the National Commission for the Net Services. It enjoys a body corporate status with a financial and administrative independence. The Commission has to organize activities of the E-Sign services and giving licenses to those who want to practice this work.

Journalists Union Calls for Establishing a Higher Media Council

Journalists Union Council on Wednesday Called for establishing a higher media council and accelerating the issuance of the new media law, amending the publications law, and using the modern mechanisms to develop the media and press. During a meeting held in its fourth round, Journalists Union Council members indicated the importance of holding rehabilitation and training courses and enhancing cooperation between the Union's branches and vocational committees.Chairman of the Union, Elyas Murad stressed the fact that the executive office is working to increase the Union's means in order to improve journalists' conditions and performance.

Transport Minister Discusses with Italian Delegation Cooperation Possibilities in the Field of Constructing Roads and Bridges

Transportat Minister, Dr. Yaroub Badr reviewed with Masimo Dalako, Director of Italian Tours Company and the accompanying delegation on Wednesday the fulfilled studied stages in the Damascus Metro project and the possibilities of making use of the advanced Italian experiences in this field. The Minister briefed the Italian delegation about investment projects of the Transport Ministry, calling on the Italian company to be part of these projects especially in constructing roads and bridges. For his part, Dalako pointed out to the possibility for the company to present its expectations about Damascus Metro project at the end of all related studies through launching a workshop about the project.

Higher Education and CIEP Sign Agreement on Quality Assurance System in Institutes

The Ministry of Higher Education and France's International Center for Pedagogic Studies (CIEP) with the support of the Tempus program signed a cooperation agreement for establishing a quality assurance system in the Ministry's technical institutes. The agreement stipulates for providing expertise and consultations regarding quality assurance by coordinating between the CIEP and the Ministry of Higher Education, with the participation of experts from France, Germany and Finland to develop the quality

42 assurance system. The three-year agreement aims to produce graduates with high levels of performance that meet the requirements of the job market. After signing the agreement, Minister of Higher Education Dr. Ghiath Barakat and the French Ambassador in Damascus Michel Duclos expressed hope for developing scientific relations between the two countries, affirming commitment to developing institutes through the quality assurance.

Israeli Tribunal to Convene Next Week to Discuss Possibility of Releasing Syrian Captive Bushr al-Maqt

The Captives and Detainees Committee in the Occupied Syrian Golan announced on Thursday that a tribunal will convene on Monday in Jalboa prison to discuss the possibility of releasing Syrian captive Bushr Suleiman al-Maqt die to the serious deterioration of his health.

In a statement, the Committee pointed out that al-Maqt suffered a heart attack in June 2007 causing him to lose consciousness, and didn't receive proper treatments for three days due to the lack of a doctor in the prison. He was later transported to a hospital where tests showed the gravity of his health condition and he underwent catheter-based cardiac surgery. The statement notes that doctors who reviewed al-Maqt's medical charts stated that he suffers from a critical health condition caused by deliberate neglect and that he is in desperate need for open-heart surgery which cannot be delayed, adding that the captive suffered a second heart attack and yet he wasn't transferred to a hospital to undergo the operation. The Committee expressed hope that the captive's defense attorney Yamen Zeidan will be able to convince the tribunal to release al-Maqt, who is currently spending his 24th year in captivity for charges of resisting Israeli occupation.

President al-Assad Receives Letter from Kuwait's Emir on Distinguished Relations and Preparation for Forthcoming Arab Summit

President Bashar al-Assad on Wednesday received a letter from Kuwait's Emir Sheikh Sabah Al-Ahmad Al-Jaber As-Sabah on the distinguished relations between the two countries and means of strengthening and developing them, following up the implementation of the Arab Economic Summit resolutions recently held in Kuwait and preparation for the forthcoming Arab summit scheduled in Doha. The letter was conveyed by Kuwaiti Prime Minister and Foreign Minister Shiekh Mohammed Al-Salem Al-Sabah during his meeting with President al-Assad. Talks during the meeting dealt with the latest developments of the situations in the region, particularly in the occupied Palestinian territories and means of supporting the Palestinian people in Gaza Strip in addition to the tireless efforts exerted to achieve the inter-Palestinian reconciliation.

President al-Assad Discusses with Armenian Foreign Minister Boosting Bilateral Relations

President Bashar al-Assad received Armenian Foreign Minister, Edward Nalbandian who handed him an invitation extended by Armenian President, Serzh

43 Sargsyan to visit Armenia. The president promised to visit Armenia as soon as possible. Talks during the meeting dealt with bilateral relations between the two friendly countries and ways of boosting them further. President al-Assad was briefed by Nalbandian on the Armenian-Turkish dialogue which aims at normalization of relations between Turkey and Armenia, reflecting positively on the region . The issue of Nagorno- Karabakh and the efforts exerted in this framework, were also discussed. The President reviewed the traces of the Israeli aggression on Gaza and the suffering of the Palestinian people due to the continuation of the Israeli blockade and the current Arab efforts for the achievement of the Palestinian- Palestinian reconciliation. The meeting was attended by , Foreign Minister ,Walid al- Moallem, Presidential Political and Media Advisor, Butheina Shaaban, Assistant Foreign Minister, Abdul-Fattah Ammoura the Armenian Ambassador to Syria , and Armenian Foreign Minister accompanying delegation. At the end of the meeting Nalbandian and al-Moallem inked an agreement on exemption all kinds of passports of the entry visas between Syria and Armenia. Later, in a joint press conference held at the Foreign Ministry, al-Moallem and Nalbandian stressed depth of the historic and cultural relations linking Syria and Armenia which form an important bridge for boosting relations between the peoples of the two countries at different levels. The Minister pointed out that the agreement signed with his Armenian counterpart is related to exempting all kinds of passports from the entry visas between the two countries. On the talks between Armenia and Turkey to resume relations between them, the Minister expressed Syria' satisfaction over the recent visit of the Turkish President Abdullah Gul to Yerevan and continuing talks between the two countries to resume diplomatic ties as soon as possible. We, in Syria, are satisfied with this positive atmosphere which closes the two friends and neighbors, Turkey and Armenia and with the development of the talks between them," al-Moallem said, noting that Syria would benefit from improving the relationship between them particularly through the link road between Syria and Armenia via Turkey. For his part, Nalbandian hailed the importance of the Syrian balanced position towards issues related to Armenia and the Syrian people good treatment and fraternal feelings towards the Armenian community in Syria. The Armenian Minister added that his talks in Damascus dealt with several issues related to consolidation of the friendly relations between Syria and Armenia in the future. He said that we exchanged viewpoints on enhancing and deepening the economic and commercial cooperation and cultural exchange and reviewed the developments regarding negotiations on Nagorny Karabakh relations and the possibility of settlement Turkish-Armenian relations as well as the latest developments in the Middle East and the Caucasus.

US Sen. Kerry hopeful after Syria talks

44 U.S. Sen. John Kerry said after talks with Syria's president Saturday that there are possibilities for "real cooperation" between the two nations, which have been at odds for years. Relations soured under the Bush administration, and Kerry and other members of Congress who have come to the Syrian capital in the last week explored the possibilities for better relations after President Barack Obama signaled he wanted to talk to opponents.

Kerry told a small group of reporters he was encouraged by the "very long, candid, open" discussion with President Bashar Assad Saturday and that he sees the possibility of progress ahead. U.S.-Syrian relations have long been tense. Syria's support for the militant organizations Hamas and Hezbollah has drawn the ire of Washington, which has also accused Syria of allowing foreign fighters to cross into Iraq. Syria, which staunchly opposed the 2003 invasion, insists it is doing all it can to safeguard its long, porous border. Kerry said there is an opportunity with Obama in the White House and a Democratic-controlled Congress "to put in place a different approach." Assad told Kerry and U.S. Rep. Howard Berman, whom he met with separately earlier in the day, that "the policy of dictation has proven useless and that dialogue is the only way" to solve problems, according to Syria's official news agency, SANA. Assad has sent signals he wants to work with Washington. In a newspaper interview published Wednesday, Assad said he was impressed by Obama's friendly gestures and welcomed the U.S. delegations to Syria. But he also said he is still waiting to see results.

SYRIA: Drought blamed for food scarcity

Two years of drought has left many farmers and herders without an income and has severely limited cereal production in Syria, pushing up local food prices and putting pressure on basic food supplies, according to UN and Syrian government officials. In 2008, Syria had to import wheat for the first time after a shortage caused by a second year of drought, which the Syrian government says has affected about a million people so far. Emergency wheat stocks have been depleted though adequate supplies remain. Syria usually keeps three years’ worth of wheat stocks, Mawazini said, but in 2008 it agreed to sell supplies to countries struggling with a lack of food, including Egypt and Tunisia. Syria is usually self-sufficient in providing food for its 21.6 million population. UN agencies warn that the country could become more food insecure if rainfall over the next two months remains as low as it has been at the start of 2009.

Katyusha Attack: Iranian Reaction or Message to Syria!

A weekend rocket attack on Israel from southern Lebanon was seen as an Iranian reaction to remarks by hawkish Likud leader Benjamin Netanyahu who has named Tehran as Israel's main threat. The daily An Nahar on Sunday quoted high-ranking officials up-to- date with Saturday's incident as saying that evidence show that the motive behind the rocket attack that injured three Israeli people was "an Iranian response to Netanyahu's remarks." Netanyahu's statement on Friday came after accepting the task of forming a new government in the wake of the tight elections. "Iran is seeking to obtain a nuclear weapon and constitutes the gravest threat to our existence since the war of independence," Netanyahu said at a ceremony at President Shimon Peres's official

45 residence. "The terrorist forces of Iran threaten us from the north," he said in reference to Lebanon and Syria, where Israel says Tehran supplies arms to Hizbullah and Hamas. The sources told An Nahar that the rocket attack could also possibly be a "message" to Damascus, which at the time of the assault was receiving U.S Senator John Kerry as the new U.S administration reviews its policies towards such states in the Middle East.

Syria takes cautious path on stocks

The Syrian authorities are hoping that the country's first stock exchange will boost the emerging private sector, although it could hardly have started up under more adverse market conditions. A three-week trial period of trading at the Damascus Securities Exchange, DSE, from the end of January tested the computer systems prior to the official inauguration scheduled for March 9. The trial also gave the Egyptian-trained brokers and other staff an induction period, including opportunities to practice dealing with emergencies such as systems breakdowns. As Syria attempts to shift from a centralized socialist system to a "social market economy", the authorities have introduced legal and regulatory reforms to get the financial sector into better shape. Private banking was legalized in 2001, and more recently private ownership rights were increased. The stock exchange is the latest step in this process, and there are hopes it will stimulate investment in the private sector. Syria, Yemen urge to lift blockade on Gaza

Syrian President Bashar al-Assad and his visiting Yemeni counterpart Ali Abdullah Saleh called Monday for lifting the Israeli blockade on the Gaza Strip and opening all the crossings, the official SANA news agency reported. "Both sides affirmed the need to support the Palestinian people and exert pressure to lift the injustice and siege imposed on them immediately and open all crossing points," said the report. Israel has imposed a tight blockade on the Hamas-ruled Gaza Strip since 2007. During their talks here, the two heads of state also stressed the need to combine efforts on the Palestinian arena to overcome difficulties and bolster Palestinian national unity in the interests of the Palestinian people and their just cause. Viewpoints were "identical" regarding the need to achieve Arab solidarity and good preparations for the upcoming Arab Summit in Doha in March with the aim of boosting Arab joint action, it added. Both sides stressed the importance of consultation between the two countries, pledging to improve bilateral ties in all fields, particularly in economy, the report said.

IAEA reports nuclear material found at Syria site

Inspectors for the International Atomic Energy Agency have found traces of processed uranium in Syria. The United Nations agency said the inspectors discovered uranium and graphite at a bombed site in Al Kibar, in the desert in northeastern Syria.

46 The report did not determine whether the graphite, used in the construction of nuclear reactors, was nuclear-grade. In September 2007, the Israel Air Force bombed a building in Al Kibar that was identified by Israeli and U.S. intelligence as a Syrian nuclear weapons facility. The agency was allowed to visit the destroyed site in June 2008.

New Israeli government brings hope for peace with Syria

Yoram Peri, head of the Chaim Herzog Institute for Media, Politics and Society at Tel Aviv University gave a lecture today at the Library of Congress titled, “A New Administration Israel and the U.S.: A New Hope for Peace?” He focused on the results of the recent Israeli election and what the likely repercussions will be concerning the peace process. One outcome of this election is an apparent shift to the right in Israeli voting, with the right-wing and center parties gaining the most seats, and the left-wing party lagging behind. Peri believes that this is based on a philosophy started by Ariel Sharon, that the Israeli government’s first priority should be security and tranquility within Israel, and peace talks should come as a secondary outcome. Therefore people vote for the parties that they believe will keep Israel’s safety first. This shift, therefore, does not mean that Israelis do not want to pursue peace, as public opinion polls show more people than ever supporting a two-state solution with the Palestinians.

Rights group wants Syria to abolish security court

International rights group Human Rights Watch has called on Syrian authorities to dissolve the country's State Security Court. The New York-based watchdog urges in a report that the US and Europe condition further progress in ties with Damascus on dissolving the court and improving . HRW described, in a report released Tuesday, the tribunal as a "kangaroo" court and "one of Syria's main pillars of repression." The report's release coincided with a visit to Syria by European Union foreign policy chief Javier Solana. Syria's relations with Western countries have been improving in recent months. Syria's Washington envoy will discuss with US diplomats this week bilateral ties and human rights in Syria.

Syria urged to abolish Supreme State Security Court

Syrian authorities should abolish the Supreme State Security Court (SSSC), a special court that exists outside the ordinary criminal justice system to prosecute those perceived as challenging the government, Human Rights Watch said in a report released Tuesday. In the 73-page report, "Far from Justice: Syria's Supreme State Security Court," Human Rights Watch documents how the SSSC has relied on sham trials to prosecute at least 153 defendants since January 2007 on the basis of vague charges that criminalize freedom of expression. Those prosecuted include 10 bloggers, 16 Kurdish activists, and eight citizens accused of "insulting the Syrian president" in private conversations.

47

The report is based on interviews with former defendants before the SSSC, their lawyers, and human rights activists in Syria, as well as an extensive review of trial notes taken by Western diplomats, who are the only outside observers to have had access to the court. "The State Security Court is one of Syria's main pillars of repression," said Sarah Leah Whitson, Middle East director at Human Rights Watch. "It's a kangaroo court providing judicial cover for the persecution of activists, and even ordinary citizens, by Syria's security agencies. Defendants have no chance of defending themselves, much less proving their innocence against the bogus charges brought against them." By decree, the SSSC is exempt from the rules of criminal procedure that apply in Syria's criminal courts. Defense lawyers play a largely ceremonial role in a charade of due process. They usually see their clients for the first time on the day of the trial and the court denies them the opportunity to engage in oral defense or call on witnesses. Most trials consist of four short sessions, often less than 30 minutes each. Defendants have no right to appeal their verdict to a higher tribunal.

Syria must abolish security court, says group

Syria should abolish its repressive security court that has tried thousands of people since 1992 who are perceived as a threat to the state, Human Rights Watch said. The New York-based watchdog said the Supreme State Security Court exists outside the ordinary criminal justice system and is accountable only to the Interior Minister "who acts as the delegated martial law governor". 24.3 Billion Barrels of Geological Reserve of Certain Oil in Syria

EU not to mediate in talks between Syria and Israel: EU special representative for Middle East

The European Union is prepared for cooperating on security presence during the indirect talks between Israel and Syria. But the EU should not mediate in the negotiations, Marc Otte, EU special representative for the Middle East, said. The principal mediator is Turkey in the indirect talks between Syria and Israel which resumed in May 2008. Despite four rounds of discussions, Damask and Tel Aviv failed to agree upon the direct talks. Disputable issue of the talks is return of Golan highlands occupied by Israel in 1967 and annexed in 1982. Amongst European countries, France displays great interest in the

48 talks. However, if the countries agreed on settlement of their dispute – border, water and cetera, we can offer guarantee of assistance in form of security presence, Otte said.

Syria requires Israel to return Kirenet lake situated on the border of Golan Highlands, Israel and Syria. However, Syria refuses fulfilling the main requirements of Israel, such as to slacken cooperation with Iran and cease military support for Hezbollah and HAMAS groups posing main threat for Israel’s security. The cooperation between the EU and Syria will not touch upon the talks with Israel and will be extended as part of the European Neighborhood Policy, Otte said. Relations between the EU and Syria aggravated after assassination of Lebanon Prime Minister Rafiq Hariri opposing Syrian policy in the region. The EU and the United States of America supported Beirut’s accusations of Damask’s organization of assassination.

However, Syria became the member of the Mediterranean Council in June 2008 established on the initiative of French President Nicolas Sarkozy to improve control over security and trade in basin of the Mediterranean Sea.

Syrian ambassador to meet senior U.S. diplomat

Signaling a possible thaw in relations, Syria's ambassador to Washington will meet a senior U.S. diplomat on Thursday, the highest-level contact between the two nations since the Obama administration took office. A State Department official said Syrian ambassador Imad Mustafa accepted a rare invitation to come to the department to meet acting head of the Near Eastern Affairs bureau, Jeffrey Feltman, who was U.S. ambassador to Lebanon. State Department spokesman Gordon Duguid said last Friday the United States also wanted to discuss Damascus' support for "terrorist groups" and its pursuit of nuclear and nonconventional weaponry. U.N. inspectors said last week that graphite and more uranium traces were found in samples taken from a Syrian site that Washington says was an almost built graphite nuclear reactor destroyed by Israel in September 2007, and this is expected to be raised by Feltman. But the meeting also offers a chance to find ways to improve relations as the Obama administration reviews U.S. policy towards Syria, including whether to return an ambassador to Damascus.

Tribunal on Lebanon assassination to open Sunday

49 A tribunal that will prosecute suspected assassins of former Lebanese Prime Minister Rafik Hariri will probably request the transfer of suspects from Beirut, an official said Tuesday. Robin Vincent, the tribunal's registrar, said the prosecutor has 60 days from the date the court formally opens on Sunday to request suspects be turned over for trial.

The court's Canadian prosecutor, Daniel Bellemare, has recently indicated he plans to request the transfer of suspects, Vincent said. He gave no further details of the suspects that could be sent to the Netherlands.

No one has been charged in the suicide bombing that killed Hariri and 22 others, although four pro-Syria Lebanese generals have been under arrest in Beirut for more than three years for alleged involvement.

Hariri, a billionaire businessman, had close ties with Western leaders and was credited with helping rebuild Lebanon's capital after the 1975-1990 civil war and trying to limit neighboring Syria's influence over Lebanon. The first U.N. investigator to investigate the assassination said the plot's complexity suggested that Syrian and Lebanese intelligence services played a role. Syria denies any involvement in Hariri's death. The tribunal, based in a former Dutch intelligence agency in a village just outside The Hague, formally opens for business on Sunday, even though no judges have yet been named and it still has no rule book for prosecutors and judges. The tribunal will use Lebanese law applied by a mixture of Lebanese and international judges. Unlike courts in Lebanon it does not have the death sentence. Its heaviest punishment is life imprisonment.

Syria Discloses Missile Facility, Europeans Say

Syria has built a missile facility on the ruins of a possible nuclear reactor that Israeli warplanes bombed in 2007, European diplomats quoted a Syrian official as saying

Ibrahim Othman, Syria’s nuclear chief, told a closed technical meeting of the International Atomic Energy Agency in Vienna about the missile facility, officials said. “He made a reference to a missile, one missile,” said a European diplomat, who spoke on the condition of anonymity under usual diplomatic protocol. Soon after the bombing, Syria raced to level the desolate site and build a structure there that resembled the site’s former main building. Syria conceded that the site was military in nature but denied conducting any nuclear activities there.

50 Last April, the Bush administration released detailed photographic images to support its assertion that the building that Israel destroyed was a nearly completed nuclear reactor constructed with years of help from North Korea. It said the reactor, once finished, would have been able to produce plutonium fuel for nuclear weapons. The new Syrian disclosure was made to the atomic agency’s 35-nation board, which is preparing for a quarterly meeting that begins next week. The agency has found traces of uranium at the site but has not been able to confirm or refute the claim that there had been a reactor there. Syria has insisted that the uranium came from Israeli bombs, but in a report made public last week, the agency said its analysis found that the shape and composition of the particles were “inconsistent with what would be expected from the use of uranium-based munitions.” Diplomats have said that the atomic agency also found at the site traces of graphite, a structural element used in North Korean reactors. But they added that it was too early to tell if the graphite was the highly specialized kind needed for atomic applications.

Syria seeks to boost Riyadh ties

Walid Muallem, Syria's foreign minister has visited Riyadh, the capital of Saudi Arabia, in a bid to improve relations with Saudi's King Abdullah. The visit on Tuesday comes ahead of an Arab League summit scheduled for late March in Qatar, amid criticism that Arab countries did not show a united front over the three week Israeli offensive on Gaza that ended in January. Muallem would bring suggestions on how rival Palestinian factions Fatah and Hamas could be reconciled, an Arab diplomat told the AFP news agency. During Israel's war, Syria was widely regarded to have supported Hamas while Saudi Arabia backed Fatah. Marwan Bishara, Al Jazeera's senior political analyst, said: "These two countries represent two different strategic political moods in the Arab world.

Relations have often been tense between the two countries. The assassination of Rafik al- Hariri, Lebanon's former prime minister, and friend of the Saudi royal family, in 2005, was widely blamed on Syria, although Damascus denied involvement. Relations got worse during Israel's 2006 war in Lebanon against Syrian and

Iranian-backed Hezbollah fighters. Efforts at mending relations improved last month after King Abdullah called for Arab reconciliation at an Arab summit in Kuwait, where he met with Bashar al-Assad, the Syrian president. This visit follows a trip to Damascus, the capital of Syria, earlier this month by Prince Muqrin bin Abdul-Aziz, Saudi's intelligence chief, who also brought a message on improving relations.

51 Hamas: Some prisoners freed for Shalit may be settled in Syria

Some Palestinian prisoners freed in a deal for abducted Israeli soldier Gilad Shalit may be settled in Syria, Hamas official Mahmoud Zahar was quoted by pan-Arab newspaper Al Hayat as saying Saturday. Zahar's statement could be interpreted as addressing Israel's fears that prematurely released convicted terrorists might take up arms once they return to the Hamas-ruled territory. A Popular Resistance Committee commander, meanwhile, was quoted by Al Hayat as saying that Shalit had been injured during the Israel Defense Forces assault against Hamas in Gaza last month, but refused to disclose his condition.

Jerusalem sources have said that Israel has prepared a new list of Palestinian prisoners it is willing to release and is ready to relay it to Hamas as quickly as possible. This is in order to advance a possible swap arrangement, after the cabinet decided Wednesday to make Shalit's release a precondition to any cease-fire agreement in the Gaza Strip.

Syria FM to attend Sharm meet on Gaza

Syria will participate in next week's conference in Sharm el-Sheikh, Egypt on rehabilitating the war-ravaged Gaza Strip, its foreign minister told reporters yesterday in Damascus. Tensions between Syria and Egypt reached a high during Israel's offensive in Gaza last month. Foreign Minister Walid Moallem said, "I will represent my country - Syria would never be absent from a meeting on the reconstruction of Gaza." The remarks came in a joint press conference with European Union foreign policy representative Javier Solana. U.S. Secretary of State Hillary Clinton will also be attending the conference in her first visit to the region. Whether she will meet with Moallem remains unclear, as such an encounter would indicate the willingness of the Obama administration to loosen isolation of the Syrian regime.

Syria willing to help on Palestinian unity says Kerry

Kerry, one of several Democratic lawmakers to visit Syria since President Barack Obama took office last month, said Syria had an opportunity to take advantage of the new administration in Washington. "I believe very deeply that this is an important moment of

52 change, a moment of potential transformation, not just in the relationship between the United States and Syria but in the relationship of the region," Kerry said. Assad had emphasised Syria's desire to have a dialogue with the Obama administration after years of tension with the United States when George W. Bush was in power. Damascus supports the Lebanese movement Hezbollah and Washington has accused Syria of allowing rebels to infiltrate Iraq. Diplomats in Damascus cautioned that any thaw in relations between Syrian and the United States might not be quick. They said Syria was showing no signs of abandoning support for Shi'ite group Hezbollah, or changing its relationship with Iran. Continued

IRAQ

Political front

Iraqi lawmaker's immunity lifted

The suicide bombing inside the Iraqi parliament killed eight people The Iraqi parliament has lifted the immunity of an MP, leaving him liable to arrest over several fatal attacks. Sunni lawmaker Mohammed al-Daini was earlier on a flight to Jordan when the plane was made to turn around and return to Iraq. Allegations against Mr Daini include claims he was involved in the bombing of the Iraqi parliament in 2007. He says the claims are untrue and adds he was going to Jordan to visit his family and was not trying to flee. Iraq's Shia-led government also accuses Mr Daini of ordering car bombings, mortar attacks and mass murders in Iraq. The suicide attack inside the parliament building in Baghdad killed eight people.

Economic front

Syria says Iraqi refugees turn into ‘unbearable’ economic burden

Syria says the presence of more than a million Iraqi refugees is stretching its strapped economic resources to the limit and has asked other Arab countries for help. It has asked a forthcoming Arab foreign ministers conference scheduled for March to place Iraqi refugees’ issue on their agenda, saying it can no longer bear paying for their stay on its territory. Syria has been spending up to $2 billion a year on Iraqi refugees and that its efforts to persuade donor countries and international aid organizations for help have almost gone unheeded. Syria cooperates with the U.N. refugee organization, UNHCR, and the U.N. Children’s fund, UNICEF, but both bodies’ budgets are highly limited. Syria is the world’s most tolerant country vis-à-vis the plight of Iraqi refugees. Unlike

53 states with claims to democracy and human rights, such as Sweden, it has never forced refugees back home. Sweden has mobilized its police force for a crackdown on nearly 5,000 Iraqi refugees it says they have failed the tests of its Migration Board to stay in the country. Parents with children, some of them born in Sweden, are rounded up, handcuffed and jailed before their deportation. In Syria Iraqis live anywhere they want and are not obliged to stay in separate quarters or camps. As a result they are entitled to social and public amenities which Syria says have cost up to $2billion every year since 2006.

Iraq seeking contractor to revamp pipeline via Syria

The Ministry of Oil is seeking foreign help to repair a rickety pipeline linking Iraqi oil fields to terminals in Syria, an official said. The ministry’s Information Officer Assem Jihad said sections of the pipeline have corroded and needed replacement. “The ministry has issued tenders for companies willing to do the repairs which will have to be carried out in coordination with the Syrian authorities,” Jihad said. The ministry had contracted a Russian firm for the repairs but Jihad said the Russians reneged on promises and agreements to do the job. If repaired, the pipeline should carry at least 200,000 barrels of Iraqi crude daily to international markets, the official said. The pipeline is the oldest in Iraq and was constructed several decades ago to ship crude from northern fields of Kirkuk to Europe via Syria. But the country’s domestic network is capable of ferrying crude produced in the north to the south and vice versa.

France says it abides by former oil deal to develop Majnoon

France has informed Iraqi authorities that it is still interested in the deals it signed with the country under the former regime of Saddam Hussein, Oil Ministry sources said.The sources, refusing to be named, said Paris was particularly interested in a multibillion oil deal it had struck with the former regime to develop the giant oil field of Majnoon. France has resumed intensive negotiations and visits with Iraq. Following a landmark visit to the country by President Nicolas Sarkozi early this month, Baghdad has been the venue for trips by several senior French officials. The product sharing deal was signed while Iraq was under punitive U.N. trade sanctions and it owed France billions of dollars. Due to the sanctions, the French could not start implementing the deal and vowed to do so once the trade curbs were lifted. The sanctions were removed once Saddam Hussein was removed from power in 2003, but oil majors have stayed away from the country due to mounting violence. It was not yet clear whether the Iraqi authorities would agree to the same product sharing conditions since they have repeatedly said they would now prefer service deals.

Social front

54 Former army generals snub government’s offer to return

Commanders of the former army have set several conditions for the government to meet before considering reconciliation. On top of their demands come the cancellation of a notorious law called debaathification and ridding the current armed forces of sectarian affiliations. Under debaathification members of the former Arab Baath Party which ruled the country are not allowed to assume public and government posts. Almost all senior army commanders were Baath party members.“The government is not serious. We fear there is a trap here, otherwise they (government) should have first scrapped their debaathification rules,” said General Nouri al-Ubaidi. The commanders also demanded the government pay their financial dues retroactively and in a way that matches what their comrades in the current armed forces earn. Lt. Gen. Talal al-Qaisi said it was important for the government to show due respect for the former army officers and pay them in the light of the ranks they held before the former army was disbanded. Lt. Gen. Qusay al-Adhami said he was not happy with the government’s conditions and advised former army officers abroad not to report to Iraqi embassies.

Museum reopening tells story of a hijacked country

Even the reopening of the Iraq Museum was a shock that reminded many in Iraq of a country that has been hijacked. Thousands of works were on show but Iraqis were nowhere to be seen enjoying the occasion. Prime Minister Nouri al-Maliki might have reveled as well as the few dignitaries he had invited for the highly restricted opening festivities. But ordinary Iraqis, who own the museum and the country, were kept several kilometers away by armed guards. Even the skies were cordoned off by helicopter gunships. Everything deemed precious and important still stands behind sandbagged redoubts as is the case with the Green Zone where the government and U.S. administration and military headquarters have cowered. The museum, one of the finest in the world, was looted – thanks to U.S. invasion troops – and still thousands of its magnificent pieces are missing. What have become real in Iraq are the chaotic conditions mired by sectarian and ethnic strife as well as the heavy boots of foreign troops. These have become the realities of the country and the reopening of the museum was an aberration. Even the officials in charge of antiquities were not happy with the showcase and most of them boycotted the reopening. Even our museum, which once UNESCO ranked as one of world’s richest in archaeological treasures, is being used as a ‘political tool.’ Those who claim to have the world’s most powerful army failed to protect it when their invasion troops landed in Baghdad in 2003. The current government reopens it but has no plans on how to protect and prevent a repeat of the looting. The helicopters that guarded the skies and the troops that kept the public several kilometers away will not be there for long. Instead of this showcase, the government should have first worked hard on how to protect ancient Iraqi treasures and sites that are still being looted.

55 New jail opens at Abu Ghraib site

Abu Ghraib, the Iraqi prison which became notorious for detainee abuse by US forces in 2004, is being officially re-opened in a new incarnation.

It has been handed over to the Iraqis and renamed Baghdad Central Prison.

The site has been extensively renovated, with upgraded facilities and amenities, including a hospital, rest rooms and visiting rooms. Work is continuing on the prison, which will eventually be the city's main jail, holding about 12,000 inmates. Initially, only one of its four sections will be used. There are already about 300 prisoners there to test it out and, once the prison has been officially inaugurated, that figure will rise to 3,500.

Torture allegations

Along with the change of name, the Iraqi justice ministry is trying to change both image and reality, billing it as a model prison, open to random inspection by the Red Cross and other humanitarian organisations. The Americans are still holding more than 14,000 Iraqi detainees in other facilities, in conditions that have been radically revised since the Abu Ghraib scandal.

Under the new status of forces agreement with Iraq, the prisoners are being released at a rate of about 50 a day. Those against whom there are pending charges will be handed over to the Iraqis as the Americans withdraw. There is much concern over the conditions in some Iraqi jails, where there is acute overcrowding and allegations of abuse and torture. American officials say the detainees they hand over are only going to prisons run by the justice ministry and which are up to international standards.

56 BUSINESS AND POLITICS IN THE MUSLIM WORLD

ASIA REPORT

March 11, 2009

Nadia Tasleem: Report on Asia 58

Ashia Rehman: Report on Fertile Crescent 65

Madiha Kaukub: Report on GCC 107

Sadia Khanum: Report on India 144

57 BUSINESS AND POLITICS IN THE MUSLIM WORLD

SOUTH & EAST ASIA and GCC & Fertile Crescent

Nadia Tasleem

Weekly Report from 28 February 2009 to 6 March 2009

Presentation: 11 March 2009

This report is based on the review of news items focusing on political, economic, social and geo‐ strategic developments in various regions namely; India, East Asia, GCC and Fertile Crescent from 28 February 2009 to 6 March 2009 as have been collected by interns. Summary

India:

Political Front:

Date of Lok Sabha elections has been announced hence various parties seem keener in running election campaigns. Elections are due to be held in five phases within a month as will start on 16 April and cover one month span. Last polling would be held on 13 May and vote counting is scheduled to be done on 16 May. Finally new government formation will take place on 28 May. Various parties’ efforts to form alliances and blame game against one another dominate the scene.

The Jamiatul Ulema‐i‐ Hind (JUH) registered its strong protest against Muslim youth being targeted in the name of terrorism. The “witch‐hunt” should end immediately if India was to be saved from falling prey to the designs of the divisive forces. Jamiat further warned government not to interfere in madrasas as it will bring severe repercussions for the state. As far as issue of Mumbai attacks is concerned, Pranab Mukherjee has reiterated that Pakistan should take strong measures to end terrorism and should cooperate with India in order to find out culprits of 26/11.

Social Front:

A Director of Slum dog millionaire, Danny Boyle, has announced to give all money, earned by the film, to people living in Indian slums.

58 Geo‐strategic Front:

Indian efforts to strengthen its navy, responsible for coastal security, and successful testing of a cruise missile grabbed attention. Meanwhile India expressed serious concerns regarding act of terror in Pakistan that targeted Srilankan cricket team. It is also said in various Indian circles that such acts would take Pakistan to total isolation. Many Pakistanis however have declared India as prime suspect in this regard. Besides all that Pranab Mukherjee has asked Srilanka to immediately resolve Tamils’ issue through political means.

Economic Front:

International major Morgan Stanley has recently released a research report. According to that Indian economic growth can reach at 3% because of ongoing economic crisis. Union Home Minister however claimed that economy is going well as it is still at 7%. Exports have fallen by 13% in the month of February.

East Asia:

Political Front:

Political crisis in Perak State Legislative Assembly in Malaysia has become serious source of concern for common public. The government in Philippines has dropped its demand for the arrest of three commanders of the Moro Islamic Liberation Front (MILF) as a precondition for the resumption of the stalled Mindanao peace talks; hence has expressed desire to open talks with rebels. Political turmoil has still surrounded Thailand. Recently thousands of protesters rallied in front of the prime minister's office demanding Thailand's parliament be dissolved and new elections held. The National Election Committee in Cambodia officially approved four political parties to contest the provincial, district and municipal council elections on May 17.

Social Front:

Decision of East Asian countries, during ASEAN Summit, regarding Rohingya Muslims to send them back to Myanmar has brought criticism by many analysts. Meanwhile Buddhists’ rally in front of ‘Buddha Bar’ in Indonesia, accusing it for defaming their religion, grabbed attention. Besides that more than 4000 people have become homeless amidst heavy floods in Indonesia. The number of women involved in decision making in Malaysian top management positions in the public sector has increased from 18.8 percent in 2004 to 22.8 percent in 2008. At least ten people have been killed during clashes between Muslim rebels and troops in two days of

59 fighting in the restive southern Philippines. Over 2,000 people took part in a special relay walkathon to spread the message of racial harmony in Singapore.

Geo‐strategic Front:

Indonesia has asked India to take part in maintaining security in the Malacca Strait. Thailand's armed forces chief has invited the Philippine military to join annual multinational war exercises in Thailand with four other countries, including the United States. Thailand and Laos have officially opened the first rail link connecting the two counties over a bridge spanning the Mekong River; that is being considered as a step towards a regional dream of connecting Asia by rail.

Economic Front:

ASEAN Summit kept prime focus on economic crisis in order to sort out ways to resolve that. East Asian states also seem keen to adopt and promote Islamic banking all across the globe. Indonesia, Thailand and Singapore have agreed to sign trade agreement with one another in order to cope with economic turmoil. Meanwhile Indonesia has asked Kuwait to cut down oil supply as alternative fuel sources are being utilized by government amidst economic decline. Malaysian government has expressed serious concern regarding economic crisis as it can prolong for yet another year hence has asked public to get united to counter ongoing crisis. Growth rate in Malaysia has reached at 0.1% while inflation has further increased. PM of Philippines has assured 500,000 overseas jobs for Filipino workers amidst global job cut down. The Thai government’s revenue collections in the first four months of fiscal 2009, dropped 16.2 per cent from its earlier target and it are now projected that revenue collections during the entire fiscal year will retreat even further. Economic crisis has also affected Singapore as its stock shares dropped to 3.85%, meanwhile GDP is also expected to shrink by 8%. Vietnam seems keen to attract foreign investments to cope with economic crisis.

Summary

GCC:

Political Front:

Members of the Islamic Constitutional Movement, the political wing of the Muslim Brotherhood, accused Kuwaiti Prime Minister of mismanagement, breach of the constitution

60 and failure to adopt a prudent economic policy. They therefore filed a request to quiz the prime minister over his performance; this can further strain their relations.

Social Front:

GCC Secretary‐General denounced the derogatory remarks made about the Prophet Muhammad (peace be upon him) in an Israeli television program, launched on channel 10. The chairman of the Dubai Department of Tourism and Commerce Marketing claimed that government will take new steps to mitigate the effects of the global economic downturn on the local tourism industry. Government of UAE has expressed serious concerns about fulfilling its domestic and international responsibilities in combating human trafficking. Meanwhile expatriates in UAE seem concerned about loosing jobs within next 12 months. Saudi Princess Adela bint Abdullah, vice president of the National Family Safety Program (NFSP), recently announced to mobilize its efforts to protect the rights of women and children in the Kingdom as well as in the Arab world. Meanwhile the Jeddah municipality has announced to issue a special license for any woman who wants to operate a business from her home. Bahrain’s Women Union has announced to launch signature campaign demanding equal nationality rights for women in the Kingdom. The second jet on Qatar Airways’ new Houston to Doha direct route will bear the name “Gaza” as a show of solidarity with the people in that war‐torn area.

Geo‐strategic Front:

Director General of Kuwait Institute for Scientific Research (KISR) Dr Naji Al‐Mutairi said that the GCC countries sought to establish a joint nuclear program to be used for peaceful purposes. All members of GCC seem keen to strengthen their ties. US President Barack Obama’s Middle East peace envoy George Mitchell discussed with Abu Dhabi Crown Prince Shaikh Mohammad bin Zayed Al Nahyan ways of achieving a lasting ceasefire in the Gaza Strip. Saudi Foreign Minister has called for a joint Arab strategy to deal with the ‘Iranian challenge’ at a meeting of Arab foreign ministers in the Egyptian capital. Meanwhile Saudi Arabia has condemned the Israeli plan to evict 1,500 Palestinians from Jerusalem’s Al‐Bustan neighborhood. Kuwait has announced to donate $200 million to the Palestinian authority as its contribution for rebuilding Gaza. Kuwaiti FM after his visit from Iraq claimed that border dispute between the two countries would be resolved soon. In order to resolve crisis with Bahrain, Iranian President has expressed his willingness to develop cordial ties with Kingdom of Bahrain. Qatar has signed MoU with Singapore to enhance bilateral ties. Meanwhile Pakistan has started considering Qatari LNG as an alternative to IPI gas pipeline project.

61 Economic Front:

Kuwait’s crude oil exports to Japan rose 26.6 percent in January from a year earlier to 10.31 million barrels, or 333,000 barrels per day. Besides that Bahraini money supply growth fell for a fourth month running to 16.4 percent in January, its slowest annual rise in almost two years. Economic turmoil has caused fall in shares of Kuwait, Qatar and Dubai.

Summary

Fertile Crescent:

Political Front:

Parliamentary session in Iraq was dominated by the issue of reduction of economic budget. A sharp divide has emerged within parliament over this issue. Rival political parties in Lebanon have announced to avoid sectarian clashes ahead of June 7 legislative elections. In Palestine the Fatah and Hamas organizations have agreed to form a new transitional government that will operate until presidential and parliamentary elections can be held. Efforts to form coalition among various parties in Israel are on the way.

Social Front:

A charter for political conduct under the teachings of the Church was launched in a joint initiative by Lebanese churches to regulate political life in Lebanon which has "deviated" from its rightful path. The charter was launched in Beirut at the end of a conference hosting representatives of Lebanon's various churches and political factions. The survey, conducted by Al Quds Centre for Political Studies, condemned government of Jordan for repressing journalists; government however denied these claims.

Geo‐strategic Front:

Chairman of Iran’s Expediency Council, Akbar Hashemi Rafsanjani, has recently visited Iraq in order to boost political and economic cooperation between the two countries. Meanwhile Iraqi PM has expressed his keenness to boost ties with Italy. In the mean time the US Department of justice has charged a US military officer with stealing hundreds of thousands of dollars in cash intended for relief and reconstruction efforts in Iraq and Afghanistan. Lebanese President Michel Suleiman claimed that Israel has no right according to the international law to use the

62 rocket launching from Lebanon as a pretext for a war against Lebanon. U.N. Under‐Secretary‐ General for Peacekeeping Operations denounced involvement of HezbAllah behind the firing of rockets into Israel. Meanwhile Britain has expressed her willingness to holds talks with HezbAllah. Jordan and the US agreed to framework paving the way for implementing several vital environmental projects over the next three years. Iran’s energy minister has recently announced that a quadripartite electricity network will be formed among Iran, Syria, Iraq, and Turkey. Syrian Minister of Information has accused Israel for ongoing crisis in Middle East. Meanwhile US asked Syria to stop backing Hamas and HezbAllah. Israel has accused Hamas for continuous rocket firing in Israel.

Economic Front:

Improved security situation in Iraq has opened ways for investment in the country. Hence German delegation has recently met with Iraqi officials to increase more investments over there. The Egyptian government announced probability of 70% increase in gas prices being sold to Israel. International Criminal Court’s order to arrest Sudanese President has raised serious concerns with Arab countries regarding growing chances of instability in Sudan. Egypt in this regard declared activation of Article 16 of the Rome statute of the International Criminal Court (ICC) to be the only way to halt measures against the Sudanese President. Foreign Secretary David Miliband has declared Egypt to be the best place for talks among various Palestinian factions. The US has announced to donate $900 million aid to Palestine.

63

BUSINESS AND POLITICS IN THE MUSLIM WORLD

Fertile Crescent

Aisha Rehman

From 28th ‐6th March, 2009

(OUT LINE) Iraq

Political front

¾ 17 ministers declare their financial status – official ¾ Political blocs meeting recommends reducing budget to ID 6.7 billion ¾ Parliament begins session to vote on 2009 budget ¾ Urgent / Parliament votes to reduce ID 5 trillion from budget ¾ Budget cut lessens deficit to 27% ‐ MP ¾ Parliamentary meeting to review final report on budget ¾ Health receives 6% of federal budget ¾ Iraqi government careless about its own refugees – minister ¾ Parliament divided on 2009 budget

Geo strategic front

¾ Rafsanjani’s visit to Iraq aims to boost political, economic cooperation ‐ Talabani ¾ Iraq keens to have best relations with Italy – PM

64 ¾ U.S. officer charged with stealing Iraq relief funds ¾ British troops’ role in stabilizing Iraq ‘negligible’

Economic front

¾ Security improvements create investment opportunities‐ VP ¾ German delegation in Iraq over investment ¾ Baghdad fire devours ancient quarter ¾ German firm to build 2,000 housing units in Missan

Lebanon

Political front

¾ Cabinet Postpones Discussion of MoU, Forms Follow‐up Committee ¾ Churches Launch Charter for Political Conduct ¾ Aridi Visits Dahieh, Denies Link to Elections ¾ Lebanon Tribunal: Bellemare vowed to seek the truth and justice ¾ Aoun: We Are Not the Target of Excommunication Threats

¾ Lebanese president: Israel has no pretext to launch war against Lebanon ¾ Tribunal opens to prosecute Hariri assassination suspects ¾ Lebanon factions pledge peaceful June election ¾ MoU with U.N. Tribunal Likely to Stir Up New Dispute ¾ National Dialogue Agrees: More Time for Defense Strategy Committee

Geo strategic front

¾ Sao Paulo's mayor visits Lebanon ¾ Report: Bellemare, Hizbullah Officials Met Before Tribunal's Launch ¾ U.N.: Hizbullah Not Behind Rocket Strikes against Israel ¾ Bellemare: We have Received Calls from Siddiq, but We Don't Know His Whereabouts ¾ Syrian Media on the Hariri Tribunal ¾ Lebanese Builder Kidnapped in Nigeria ¾ Britain Open to Talks with Hizbullah ¾ U.S. Law Could Hold Syria More Accountable for Meddling in Lebanon ¾ Qahwaji Returns With Promises of U.S. Military Support

Economic front

65

¾ Lebanon's Central Bank chief rings NYSE opening bell

Social front

¾ Cinema chain resumes screening movie about ethnic‐Lebanese gangs ¾ Hizbullah Receives $20 million Annually from Proceeds of Pirated Films, Report

Egypt

Political front

Economic front

¾ Egypt: Israeli gas prices could rise 70% ¾ Egypt: $4.4B raised for Gaza reconstruction ¾ PNA to reveal Gaza economic plan at Egypt conference

Geo strategic front

¾ Egypt calls for suspension of ICC arrest warrant against Sudan’s al‐Bashir ¾ Egypt urges suspension of Beshir warrant ¾ Egypt's Pachin signs deal with India's Micro Inks ¾ Somali Pirates Release Egyptian Ship ¾ US warns citizens in Egypt after spate of attacks ¾ UN chief presses US for stronger UN leadership ¾ Egypt best placed to talk to Hamas ‐ Miliband ¾ Al‐Beshir expels aid groups, Arab League to contest arrest warrant ¾ Egypt court summons Israeli envoy for torture ¾ Officials slam Egypt for Marzouk visit Social front

¾ Egypt reports 57th human case of bird flu

66 Jordan

Political front

¾ Government denies ‘soft containment’ of journalists Economic front

¾ Trans Global drops case against Jordan ¾ Advertising expenses hit 8‐year low in 2008

Geo strategic front

¾ Regions plan needs teamwork’ ¾ US, Jordan agree to three years of environmental cooperation ¾ Professional associations warn against potential Bashir arrest warrant ¾ 'Religion should surpass political authority in Jerusalem’ ¾ 'Jordan adheres to Arab consensus on Sudan’

Syria

Political front

¾ People's Assembly approves a draft law on the final account of 2007 Budget

Geo strategic front

¾ Iran‐Syria‐Turkey‐Iraq power network to be formed ¾ Iran‐Syria relations growing and exemplary: VP ¾ Iranian president Underlines Strong Relations with Syria ¾ International Criminal Court Arrest Warrant against al-Bashir Condemned ¾ Bilal: Israeli Occupation Causes Troubles for the Region ¾ Al-Baath Party strongly condemns the International Criminal Court arrest warrant against the ¾ U.S.: No normal Syria ties until it stops backing Hamas, Hezbollah

Nuclear Energy

¾ U.N. nuclear watchdog to consider Iran and Syria threat ¾ Syria Says Disputed Site Has Missiles

Economic front

Social front

¾ Lebanese journalist says President al-Assad has sought to boost Syrian-Lebanese relations

67 Israel and Palestine

Political front

¾ Palestine: Abbas: We Are Heading Toward Reconciliation Government ¾ Israeli PM Olmert Warns Palestine over Rocket Attacks ¾ Fatah, Hamas to Form Transitional Government ¾ Labor Chairman asks Israeli president to convince labor join coalition with Likud

Geo strategic front

¾ Lasting Peace for Palestine, ASEAN ¾ Iran's Foreign Ministry spokesman Hassan Qashqavi says Tehran welcomes Hamas‐Fatah reconciliation talks.

Economic front

¾ US Donates $900 Millions in Aid for Gaza

Conflict news

¾ The ruling Hamas party in Gaza welcomed Sharm El Shiekh donors' meeting, but warns of political extortion ¾ US Remains Committed to Dividing Israel ¾ The Rockets Keep Coming From Gaza

Iraq

Political front

17 ministers declare their financial status – official

Seventeen ministers submitted their financial status reports during the past couple of months, according to a senior anti-corruption official on Monday. “Minister of Municipalities & Public Works Riyadh Gharib was top of the list of minister who declared their financial status,” Judge Raheem Hassan al-Ekeili, the chief of the Anti- Corruption Board, was quoted in a release. “Also submitting their financial status reports the chiefs of the Christian, Shiite and Sunni endowments offices,” Ekeili added.

Political blocs meeting recommends reducing budget to ID 6.7 billion

68 The political blocs meeting which was held morning wrapped up with three recommendations, including reducing the 2009 general budget to 6.7 billion Iraqi dinars, according to a member of the parliament’s finance committee. “The meeting agreed on three agreements and will be presented to the Parliament to vote on them today (March 5), while the other two agreements are reducing the budget by 10 percent and the second reducing it by 75 percent,” MO Sami al‐ Atroushi told. Iraq’s 2009 federal budget, totaling $62 billion U.S. dollars, is based on an oil price of $50 a barrel.

Parliament begins session to vote on 2009 budget

The Iraqi Parliament started its session under First Deputy Speaker Sheikh Khaled al- Attiya to vote on the 2009 federal budget. Parliament completed the second reading of the 2009 federal budget during its regular session on (Feb. 24), and the first reading on (Feb. 18). Iraq has been forced to cut the 2009 budget twice already, from an initial $80 billion to $62 billion, as global oil prices slumped from a record high of $147 per barrel last summer. But the latest version of the spending plans is still dependent on a potentially optimistic average oil price during the year of $50 per barrel. Crude prices are closer to $40 now. Sami al-Atrushi, a member of parliament’s finance committee, had said the finance committee had decided to narrow down parliament’s options on budget cuts to three choices. The first called for a 10 percent reduction in the overall budget, or 7 trillion Iraqi dinars ($5.9 billion) in cuts. The second option was for cuts in operational spending of 6-7 trillion Iraqi dinars but would leave investment spending untouched. The third choice was to lop 10 percent off all spending by government ministries. That would result in total cuts of around 1 trillion Iraqi dinars, Atrushi said.

Urgent / Parliament votes to reduce ID 5 trillion from budget

The Parliament has voted by a landslide vote to reduce the 2009 general budget by ID 5 trillion, MP from the Fadhila party said. “Parliament decided with a landslide vote to decrease the 2009 general budget by ID 5 trillion,” MP Mohamed al‐Khazaali told. “The parliament agreed with the Fadhila party’s suggestion not to touch the retired people’s salaries,” he explained. The Iraqi Parliament had started its session under First Deputy Speaker Sheikh Khaled al‐Attiya to vote on the 2009 federal budget. Parliament completed the second reading of the 2009 federal budget during its regular session on (Feb. 24), and the first reading on (Feb. 18). Iraq has been forced to cut the 2009 budget twice already, from an initial $80 billion to $62 billion, as global oil prices slumped from a record high of $147 per barrel last summer. But the latest version of the spending plans is still dependent on a potentially optimistic average oil price during the year of $50 per barrel. Crude prices are closer to $40 now. Sami al‐Atrushi, a member of parliament’s finance committee, had said the finance committee had decided to narrow down parliament’s options on budget cuts to three choices. The first called for a 10 percent reduction in the overall budget, or 7 trillion Iraqi dinars ($5.9 billion) in cuts. The second option was for cuts in operational spending of 6.7 trillion Iraqi dinars but would leave investment spending untouched.

69 Budget cut lessens deficit to 27% ­ MP

The 2009 state budget cut by 5 trillion Iraqi dinars has helped lower the deficit from 32% to 27%, an Iraqi lawmaker said. “The cut decreased the deficit to from 21 trillion Iraqi dinars to 15.8 trillion Iraqi dinars. The appropriations for the presidency, parliament, ministers and supreme judiciary were cut by 20% while those of the ministers, legislators and advisors were cut by 10%,” Sami al-Atroushi, a member of the Iraqi parliament’s financial committee, told. Atroushi noted that the parliament was keen not to touch the investment allocations, which were maintained at $12.7 billion. Meanwhile, Sabah al- Saadi, a member of the parliament’s anti-corruption committee, said this is “the first time the budget was debated in a proper accurate way in line with the global financial crisis”.

Parliamentary meeting to review final report on budget

A lawmaker from the Kurdistan Alliance (KA) on Thursday said that the parliament is holding a meeting under First Deputy Speaker Khaled al-Attiya with some specialized parliamentary committees to discuss the final report on the general budget of 2009 in order to vote on it.“The meeting is considering two opinions: decreasing the budget by 10 percent of the spending or to leave the budget as it is hopefully the finance minister could present a complementary budget next June,” Nazneen Mindlawi told Aswat al-Iraq news agency.The meeting was attended by the financial, economic and services committees.

Health receives 6% of federal budget

The Ministry of Health will receive 6 percent of Iraq’s 2009 federal budget, the chairman of the parliamentary health and environment committee said. “The ministry’s share of the budget is good and enough to carry out its projects scheduled for this year,” Nozad Saleh told. “We were hoping for a 10 percent share of the general budget, but the drop in oil prices was an obstacle,” Saleh noted. Iraq’s 2009 federal budget, totaling $62 billion U.S. dollars, is based on an oil price of $50 a barrel.

Iraqi government careless about its own refugees – minister

The Iraqi ministry which is supposed to look after Iraqi refugees says its coffers are empty despite urgent needs. Displacement and Migration Minister Abdulsamad Sultan said he could not even afford paying the travel expenses of Iraqi refugees willing to return home. There are no exact figures on the numbers of Iraqis who had to flee the country or leave their homes in the aftermath of the 2003 U.S. invasion. The ministry estimates the number of Iraqi refugees in neighboring states to amount to 2 million people. Iraqi authorities have done almost nothing to help Iraqi refugees in neighboring states despite unprecedented oil revenues in the past two years. Legally, all Iraqis are entitled to subsidized food rations but it is not clear what the authorities are doing with the monthly share of fleeing families. The government has promised

70 to compensate returning families but the minister said the law regulating payments still remains on the shelf.

Parliament divided on 2009 budget

Budget deliberations have entered their third month in Iraq and 2009 allocation are still hold up at the Iraqi parliament. Certain government departments have already consumed all their 2008 money and the Migration and Displacement Ministry says it has stopped repatriation of Iraqi refugees from neighboring states due to lack of cash. But the deputies are still haggling and some have accused the government of presenting an unrealistic budget in which there is a huge gulf between revenues and expenditures. They have called on the government to slash unessential expenditures by at least 15% excluding pensions, salaries, social security and food rations. Oil price gyrations in the past two months have made many deputies skeptical about government’s revenue estimate for 2009. Iraq currently exports about 1.9 million barrels a day and there are no indication of any substantial hikes in the export volume. The government has presented the parliament with a $62 billion budget but the deputies say the figure is bloated and revenues, given the current volatility in international markets, may lead to a revenue deficit of more than $30 billion.

Geo strategic front

Rafsanjani’s visit to Iraq aims to boost political, economic cooperation ­ Talabani

Iraqi President Jalal Talabani said that the visit of the chairman of Iran’s Expediency Council, Akbar Hashemi Rafsanjani, to Iraq aims to boost political and economic cooperation between the two countries. Speaking at a joint press conference with Rafsanjani in Baghdad, the president said that “Rafsanjani’s visit has a great importance and aims to foster ties between the two countries.”Rafsanjani had arrived on Monday in the Iraqi capital Baghdad on a five-day official visit, according to a source from the Iranian embassy. “The visit comes in response to an invitation from Iraqi President Jalal al-Talabani,” the source told. “Rafsanjani will meet a number of Iraqi officials, including the president, the prime minister and others,” the source explained.

Iraq keens to have best relations with Italy – PM

Iraqi Prime Minister Nouri al-Maliki said that the government is keen to have the best relations with Italy on various domains, according to a statement from his office. “Al- Maliki (March 2) received at his office in Baghdad Italian Minister for Economic Development, Claudio Scajola, and discussed with them means to bolster bilateral relations,” said the statement received. “The premier instructed the concerned ministries

71 to speed up the work to achieve the signed agreements and protocols between the two countries,” it added. “The Italian minister lauded the recent provincial council elections which were held in a safe atmosphere,” it also said. “Al-Maliki called on the Italian companies to contribute in rebuilding Iraq as the rest of the international companies which entered the Iraqi market,” it said. The two discussed also and agreement to provide the Iraqi navy with military boats and choppers.

U.S. officer charged with stealing Iraq relief funds

A U.S. military officer has been charged with stealing hundreds of thousands of dollars in cash intended for relief and reconstruction efforts in Iraq and Afghanistan, the U.S. Department of Justice says. While stationed in Iraq between April 2007 and February 2009, Michael Dung Nguyen, 28, is alleged to have stolen more than $US690,000 ($1.1 million), sending it back to his home in north-western Oregon, the ABC News network quoted the department as saying in a statement. The funds were swiped from the Commander’s Emergency Response Program which was designed to empower local commanders in Iraq and Afghanistan to respond to humanitarian relief and reconstruction efforts. After his return from Iraq, Nguyen is accused of opening new accounts at numerous banks to deposit the cash. After making the deposits “in a manner intended to avoid detection”, according to the Justice Department, Nguyen allegedly attempted money laundering with the purchase of high-end goods. He bought a luxury BMW and a 2009 model Hummer truck, along with computers, other electronic equipment and furniture.

British troops’ role in stabilizing Iraq ‘negligible’

British occupation troops’ role in reinstating stability in Iraq and particularly in the southern Province of Basra has been useless, according to a senior provincial official. Basem al‐Mawsawi said it was much better for Britain and its troops to have stayed home than get involved in a miscalculated adventure. If the British troops had anything to learn from their Iraq experience was how to guard their garrisons against attacks, he added.

“The British troops have played no part in maintaining security in the province. Their only part has been how to protect themselves,” Mawsawi, a provincial council member said. He said Basra provincial council has been aware of “this fact long time ago and has been working and planning as if the troops were not there.”Britain is to withdraw its 4,000 troops from Iraq by June but there will be no festivities in Iraq to see them off.

Economic front

72 Security improvements create investment opportunities­ VP

Iraqi Vice President Tareq al-Hashemi on Sunday said that recent improvements in the security situation will open the door to investment opportunities in Iraq, according to an official statement. “The remark was made this morning during Hashemi’s reception of a delegation comprised of Japanese businessmen, large company owners and the Japanese ambassador to Iraq, Hisao Yamaguchi,” read the statement that was released by Hashemi’s office and received. “We need to turn to construction and development after the security file is closed. We need to rehabilitate our infrastructure and to provide more energy for projects carried out by Japanese companies…,” the statement added.

German delegation in Iraq over investment

A German economic delegation met with members of the Iraq National Investment Commission (INIC) to discuss prospects of investment in the country. “The delegation was acquainted with the Investment Law and the privileges and facilities granted to investors,” according to a statement released by the National Media Center and received. “INIC members called on German investment companies to seize the opportunity to invest in the industry, agricultural and housing sectors…,” the statement added.

Baghdad fire devours ancient quarter

A huge fire raged in the ancient Kadhimiya quarter of Baghdad and the blaze is said to have razed at least 50 shops, Baghdad fire fighting officials said. They said it took 300 fire fighters and scores of fire fighting vehicles more than five hours to extinguish the blaze. The shopping area most affect by the fire is a venue for traditional shopping where grocers sell mainly spices and antiques. Brigadier Waleed Hameed, who lead the efforts to put down the blaze, said Baghdad fire fighters showed “courage and determination” and have emerged as a successful fire fighting unit. Prime Minister Nouri al‐Maliki has ordered an immediate investigation, Hameed said.

German firm to build 2,000 housing units in Missan

The Investment Commission in the southern Province of Missan has signed a contract with a German construction firm for 2,000 new housing units. The commissions’ chairman, Ali Warid, said the housing units will be sold to both the private and public centers once completed. He said his commission was keen to lure German firms to the province. “The investment environment in Missan is very suitable to German firms. We have a lot of oil, cheap and abundant labor and besides we generally trust German firms,” he said. Warid said his commission was determined “to provide German firms willing to work in the province with all

73 the means and measures that will help them execute the contracts they sign.” He said his commission has already signed several contracts with German companies. He did not elaborate.

Lebanon

Political front

Cabinet Postpones Discussion of MoU, Forms Follow‐up Committee

The cabinet postponed discussion of a Memorandum of Understanding with the Special Tribunal for Lebanon till next week and agreed to form a committee to study the issue. Information Minister Tareq Mitri said after the cabinet session that Ministers Mohammed Fneish, Ibrahim Najjar and Khaled Qabbani were tasked with studying the MoU and making proposals for next week's session. The memorandum proposed by the Justice Ministry seeks to regulate relations between the Lebanese judiciary and the STL's general prosecutor. Last week, the cabinet delayed the decision to sign the MoU after March 8 cabinet ministers argued that a clause in the draft text of the memorandum would "expose Lebanon and make every Lebanese subjected to scrutiny." A March 8 minister told the daily An Nahar that the word "local authorities" under the MoU draft "could include all people, starting with the head of state all the way to the last politician." The third clause states that Lebanese authorities guarantee that the office of the tribunals' Attorney General is free from any interference during investigation in Lebanon and that it is provided with the necessary assistance to help its mission succeed.

Churches Launch Charter for Political Conduct

A charter for political conduct under the teachings of the Church was launched Thursday in a joint initiative by Lebanese churches to regulate political life in Lebanon which has "deviated" from its rightful path. The charter was launched in Beirut at the end of a conference hosting representatives of Lebanon's various churches and political factions. Former minister Roger Deeb told the conference that the document lists three commitments: to regulate ties between the government and the Palestinian authority in Lebanon; to ensure that all weapons are within state control; and to establish normal relations with Syria. Explaining the idea behind the charter, Bishop Beshara el Rai said: "The Lebanese political life has deviated from its role" as a tool to serve the public. Therefore, there is a need to educate and guide (the political) conscience back to the right track."

74 The charter described politics as "an honest form of art based on a set of principles and aimed to serve (the people)." It advised voters to "choose freely" the candidates who have a high sense of ethics and are most qualified to engage in political life. It cautioned against using "extremism" as a cursor to select candidates in the June 7 parliamentary elections. The document also called for the state and the Church to be "independent from one another." It also placed said both Christian and Muslim sects have a shared responsibility to preserve Lebanon's unique character and protect it from vanishing

Aridi Visits Dahieh, Denies Link to Elections

Public Works and Transportation Minister Ghazi Aridi toured the southern suburbs on Thursday to inspect progress in the "Waad Project" to rebuild the area, which was devastated in the 2006 war. Aridi brushed off a question on whether the trip was linked to election campaigning since he was the first government official to visit the constructions sites. "There is no electoral (agenda) behind any of the visits apart from the fact that I am voting for the best interest of the Lebanese citizen," Aridi added. Reminiscing on his memories in Dahieh, Aridi said: "I say, proudly, that my connection to this area is three decades old. Aridi said he experienced some of the toughest days of his life in the suburbs. "The connection is unbreakable and rises over all political disputes."

Lebanon Tribunal: Bellemare vowed to seek the truth and justice

The Head of the UN International Independent Investigation Commission and the Prosecutor Designate of the Special Tribunal for Lebanon, Danielle Bellemare, vowed Friday to see justice is done in the case of murdered former Lebanese premier Rafik Hariri, as the UN's investigative work in Lebanon comes to an end. The UN official said that on February 28, 2009, the mandate of the United Nations International Independent Investigation Commission will come to an end after almost four years of intensive work, to reveal the culprits behind the assassination of premier Rafik Hariri on February 14, 2005. The Special Tribunal for Lebanon is due to officially open in the Hague on March 1st. He assured the Lebanese people that his court will not be pressured in any way. The formation of the Special Tribunal for Lebanon was authorized by the UN Security Council in its resolution 1757 in May 2007. The tribunal will have 11 judges, including four from Lebanon. Canadian Daniel Bellemare, who currently heads the UN panel probing the Hariri assassination, will become the special tribunal's prosecutor.

Aoun: We Are Not the Target of Excommunication Threats

75 MP Michel Aoun said that recent remarks about excommunication were not targeted at his parliamentary bloc, adding that he is a faithful Catholic and knows his limitations when it comes to attacking the church. Aoun was referring to last week's comments by Maronite Bishop of Jbeil Beshara Rai, who said that those who slander Patriarch Nasrallah Sfeir will be punished by excommunication. Aoun had earlier attended the fifth round of national dialogue to discuss progress on the defense strategy and security‐related measures ahead of the July 7 parliamentary elections. The session was rescheduled for April 28. Aoun pointed out that President Michel Suleiman had the "sole right" to keep the meetings' minutes and to release them to the public.

On the elections, Aoun said the Free Patriotic Movement was drafting electoral lists of eight candidates in the northern Metn district.

Lebanese president: Israel has no pretext to launch war against Lebanon

Lebanese President Michel Suleiman said that Israel has no right according to the international law to use the rocket launching from Lebanon as a pretext for a war against Lebanon. In an interview published Sunday by the local daily al‐Balad, the Lebanese president said that he denounced any act of firing rockets from Lebanon into Israel, and considered such acts to be against the Lebanese "popular and official will." Suleiman, who was the Lebanese army commander before being elected president last May, said that "a nation is built by a military spirit and not by military rule." He affirmed that the upcoming parliamentary elections in June will take place in one day, and the sporadic security flare‐ups will not hamper it.

Tribunal opens to prosecute Hariri assassination suspects

An international tribunal to prosecute suspects in the assassination of former Lebanese Prime Minister Rafik Hariri was officially opened Sunday at a ceremony in a village outside The Hague. The court's registrar Robin Vincent asked for a moment of silence to commemorate Hariri and the 22 others killed in a Feb. 14, 2005, suicide bombing in Beirut. Court prosecutor Daniel Bellemare of Canada said Sunday in a television interview he expects to ask within weeks for Lebanon to transfer to the court four pro‐Syrian generals who are suspects in the assassination. The request, ''will be made as soon as possible,'' Bellemare told pan‐Arab al‐Arabiya satellite TV channel. The generals led Lebanon's police, intelligence service and an elite army unit at the time of the assassination. They are the only people in custody, though they have not been formally charged.

Lebanon factions pledge peaceful June election

76 Rival political parties vow to avid sectarian clashes ahead of June 7 legislative election. Lebanon's rival political factions on Monday pledged to refrain from violence in the run‐up to a crucial legislative election in June, the president's office announced after all the parties met. The promise came as the ruling majority in parliament and the Hezbollah‐led alliance held a fifth round of talks on a national defence strategy at the heart of which lies the thorny issue of Hezbollah's arsenal. The talks were adjourned to April 28 after a deal was struck by members of a commission set up by the two camps to continue working towards finding common ground on defence. Monday's talks focused largely on the need to avoid sectarian clashes ahead of the June 7 general election that will pit the parliamentary majority against the opposition. Participants pledged "not to resort to any kind of violence, including through media channels, speeches and declarations," President Michel Sleiman's office said in a statement.

MoU with U.N. Tribunal Likely to Stir Up New Dispute

Endorsing a Memorandum of Understanding with the Special Tribunal for Lebanon is likely to stir up a fresh dispute among Cabinet ministers. Local media said heated discussion is expected during a Cabinet meeting scheduled for Thursday over the MoU, as well as the establishment of office of the tribunal's attorney general in Beirut, a move supposed to take place soon. Meanwhile, the standoff over the state budget, between Parliament Speaker Nabih Berri and Prime Minister Fouad Saniora, dragged on with no signs of a breakthrough. Opposition Cabinet ministers argued that a clause in the draft text of the MoU would "expose Lebanon and make every Lebanese subjected to scrutiny until further notice, depending on the mood of the attorney general and his assistants, without any control."

National Dialogue Agrees: More Time for Defense Strategy Committee

After a fifth round of national dialogue, Lebanese leaders agreed to allow more time for military experts to reach a common understanding on a defense strategy, and pledged to refrain from provocations in the buildup to elections. The participants also agreed to meet for a sixth round on April 28. Notable absentees were Prime Minister Fouad Saniora, who is attending a donors' conference in Sharm el‐Sheikh on rebuilding Gaza, and MP Ghassan Tueni, who is currently abroad. Suleiman started the meeting with a reminder that a final agreement on a defense strategy "takes time and is dependant on a group of factors," including domestic and foreign political considerations.

In a final communiqué, the participants agreed that a committee of military experts will "continue to search for a common understanding to draw up a unified blueprint for a national defense strategy." The findings will be presented to the national dialogue roundtable. They also

77 vowed to "cooperate with the authorities in their efforts to achieve the highest degrees possible of security and political stability" in the buildup for the June 7 parliamentary elections, the statement said. To that end, the top politicians agreed "not to provide cover for any individual who might breach the law."

Geo strategic front

Sao Paulo's mayor visits Lebanon

President Michel Suleiman met at the Baabda palace Gilberto Kassab the mayor of Sao Paolo . Kassab, who is of Lebanese decent is heading a Sao Paolo delegation, on an official visit to Lebanon. Prior to departing to Beirut Kassab said at the city hall in Sao Paolo " it is very important for Brazil and especially for Sao Paulo to establish closer ties with the Arab countries. During a meeting with the Sao Paulo delegation, Suleiman said because of international confidence and the efforts and remittances of the emigrant community, Lebanon avoided the negative repercussions of the current world financial crisis. Suleiman reassured all the Lebanese emigrants that the financial and security situation, and their future investments in Lebanon are secure.Suleiman called for bolstering of former treaties signed between Lebanon and Brazil and the enhancement of relations by way of more frequent official visits.

Report: Bellemare, Hizbullah Officials Met Before Tribunal's Launch

The international tribunal's chief prosecutor, Daniel Bellemare, met with Hizbullah officials before traveling to The Hague for the start of the court's operations, As Safir daily reported Tuesday. The newspaper quoted sources from the U.N. commission investigating ex‐Premier Rafik Hariri's assassination as saying that last week's meeting was "fruitful and very positive." The sources lauded Hizbullah's "cooperation," and denied that the Shiite party "had refused to cooperate." The report did not give further details. As Safir said the sources also described as "untrue" reports that Dutch intelligence services had arrested several Hizbullah members who took photographs of the headquarters of the international tribunal that would try ex‐Premier Rafik Hariri's suspected assassins. France's Le Monde daily reported last week that Hizbullah members photographed the tribunal building. The Shiite party issued a denial. Meanwhile, U.N. Secretary‐General Ban Ki‐moon said the launching of the Special Tribunal for Lebanon "marks a decisive milestone" in efforts to bring Hariri's assassins to justice.

U.N.: Hizbullah Not Behind Rocket Strikes against Israel

U.N. Under‐Secretary‐General for Peacekeeping Operations Alain Le Roy said Hizbullah was not behind the firing of rockets into Israel. He said that one of the tasks of UNIFIL was to "look into who stands behind the rocket attacks" carried out in the border region, which falls under the

78 peacekeepers' area of control. Le Roy said that an investigation by U.N. peacekeepers, with the cooperation of the Lebanese army, is underway in the territory under UNIFIL's area of control, to pin down the perpetrators. Responding to a reporter's question, Le Roy said: "I don't think we cooperate with Hizbullah. However, we are happy that Hizbullah has condemned and denied any involvement in the rocket attacks." Lebanese Information Minister Tareq Mitri recently said that Hizbullah has made it clear to the government that it was not behind the rocket strikes.

Bellemare: We have Received Calls from Siddiq, but We Don't Know His Whereabouts

The international tribunal's chief prosecutor, Daniel Bellemare, said that the U.N. commission investigating former Prime Minister Rafik Hariri's assassination has received several phone calls from key witness Mohammed Zuheir Saddiq, but added that "we don't know his whereabouts." Siddiq, who was under an international arrest warrant requested by a Lebanese prosecutor, was detained in October 2005 in a Paris suburb in connection with the assassination. France refused to extradite him to Lebanon because it had not been guaranteed that he would not face the death penalty if convicted, and the former intelligence agent had since been living in the Paris suburb of Chatou. Siddiq was quoted in newspaper reports in 2006 as saying that Syrian President Bashar al‐Assad and his Lebanese counterpart at the time, Emile Lahoud, ordered Hariri's 2005 assassination in a massive Beirut car bombing.

Syrian Media on the Hariri Tribunal

With the commencement of the International Tribunal of the assassination of former Lebanese Prime Minister Rafik Al Hariri in The Hague yesterday, it was noticeable that the majority of Syrian media, both public and private, electronic and print, did not cover or report the Tribunal. The leading news stories reported by the official Syrian Arab News Agency [SANA] on Saturday, and Sunday morning, were regarding the global financial crisis, and the heavy rainfall and snow seen throughout the country.

The three official Syrian newspapers; Teshreen, Al‐Thawra, and Al‐Baath, did not focus the International Tribunal, rather their front page stories dealt with the visit of Syrian Prime Minster Muhammad Naji al‐Otari to Tehran, and the commencement of the Iranian‐ Syrian joint‐ committee. Privately‐owned Al Watan newspaper did report the International Tribunal, but not on its front page, and its articles questioned the tribunal's ability to achieve justice. The official state television channel did not mention the tribunal at all, although Al Dunya TV announced that the International Tribunal had officially begun in The Hague, but noted that "the actual trial is not scheduled to begin before the end of the current year." Al Dunya TV also made reference to the "March 14 alliance's campaign to promote political information on the tribunal's work"

79 and Hezbollah's demands to Judge Sakr Sakr not to succumb to political pressure and to release the 4 General [that are implicated in Al Hariri's assassination] saying that "their detention is…illegal." In addition to this, Syrian legal mediators expressed their satisfaction at Daniel Bellemare's pledge not to politicize the tribunal. Dr. Ammar Al Qurbi, a member of the International Coalition for the International Criminal Court [ICC] informed Asharq Al‐Awsat that "From a political point of view, we respect this tribunal and hope that it will not become politicized, or influenced by political polarization."

Lebanese Builder Kidnapped in Nigeria

Armed militants have kidnapped a Lebanese man working on a road construction project in Nigeria's southwestern oil‐producing state of Bayelsa, the military said on Thursday.

The military spokesman for a special patrol unit in the restive oil Niger Delta, Colonel Rabe Abubakar, said in a statement that the Lebanese was seized Wednesday by "fully armed" individuals. Nigeria's oil‐rich Niger Delta has seen an upsurge in kidnappings of local and expatriate workers in the past three years, mostly by criminal groups seeking ransom money. No group has claimed responsibility for the abduction of the Lebanese, only identified by his first name and his firm Elite Construction Company.

Britain Open to Talks with Hizbullah

Britain said Wednesday it is prepared to engage in direct contacts with Hizbullah's political wing, ever since the Shiite group became part of a national unity government last year. London has had no official talks with Hizbullah since 2005, and last July added its military wing to a blacklist of designated terrorist groups. "We have reconsidered the position," Foreign Office minister Bill Rammell told a parliamentary committee hearing.

The main reason was "in the light of more positive developments within Lebanon, the formation of the national unity government in which Hizbullah are participating, and for that reason we have explored establishing contacts." Rammell said there had already been a "first meeting" between a delegation of lawmakers from the main opposition Conservative party visiting Lebanon and a Lebanese parliamentary delegation, which included a member of Hizbullah. "We will look to have further discussions, and our overriding objective in that is to press Hizbullah to play a more constructive role and move away from violence," he said. However, Rammell stressed there would be no such change towards Hamas, the Islamist Palestinian movement, saying: "I don't think there's an analogy."

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U.S. Law Could Hold Syria More Accountable for Meddling in Lebanon

Several U.S. lawmakers have reportedly presented a draft law to the Senate that would hold Syria more accountable for meddling in Lebanon, including the possibility of international sanctions against it. The daily Al Mustaqbal, which carried the report on Wednesday, said the draft bill – titled "Accountability Law and Syria's Liberation" ‐‐ is a revision of the previously issued law against Damascus that dates back to October 2002.

It said the new draft suggests harsher sanction measures against Syria "for its continuous support for terrorism, upgrading long‐range missiles and meddling in Lebanese affairs."

The draft also calls on U.S. President Barack Obama to recommend that the U.N. Security Council adopts "international sanctions" against Syria as per Article 41 of the U.N. Charter.

Qahwaji Returns With Promises of U.S. Military Support

The United States has reaffirmed its unwavering support of the Lebanese military establishment during a ten‐day visit by Army Commander Gen. Jean Qahwaji, the Army said in a statement Thursday. Qahwaji, who returned to Beirut Wednesday, had met with senior State Department officials and top military leaders including U.S. Central Command Commander David Petraeus and the Chairman of the U.S. Joint Chiefs of Staff, Admiral Michael Mullen. The U.S. officials told Qahwaji that Washington " will continue to provide military aid to the army … boosting its ability to preserve internal security, fight terrorism, control the borders and ensure the implementation of Security Council Resolution 1701," the statement said. The United States last week said it will provide the military with "Raven" unmanned aircrafts.

Economic front

Lebanon's Central Bank chief rings NYSE opening bell

The American Lebanese Chamber of Commerce, NYSE Euronext, Auerbach Grayson, and The Bank of New York Mellon are delighted to host an inaugural Lebanon Capital Market Day today at The Palace Hotel in New York City. Officials representing Lebanese financial institutions and

81 governmental agencies will address various economic issues impacting Lebanon and the Middle East. Representatives of Lebanese public companies will be meeting with investors and other market participants.

The day will begin with Riad Salame, Governor of Banque du Liban, ringing The NYSE Opening Bell(SM) along with Mr. Salim Zeenni, President of the American Lebanese Chamber of Commerce, and Mr. Roger Nasnas, President of the Economic and Social Council. Governor Salameh was voted Central Banker of the Year for 2009 by The Banker Magazine, and will discuss:

‐ The development of the monetary system of Lebanon

‐ The prudent central banking which led to the ability of Lebanon to weather the financial storm

‐ Specific steps that are being taken to control monetary policy

Social front

Cinema chain resumes screening movie about ethnic‐Lebanese gangs

A major Australian cinema chain said Monday that it would resume screenings in Sydney of a gritty movie about Lebanese‐Australian gangs with increased security because of audiences' initial violent reactions. Greater Union suspended screenings of the low‐budget Australian‐ made independent movie "The Combination" in its four Sydney cinemas Sunday after violence broke out at its suburban Parramatta theater on Thursday and Saturday nights. Thirty young people attacked a security guard Thursday night, sending him to the hospital, police said. On Saturday night, police were called when four people began fighting during a screening. No arrests were made. The decision to suspend Sydney screenings outraged the makers and distributors of the critically acclaimed movie that premiered Thursday and strikes a sensitive racial chord in this city of 4 million.

The drama is spliced with television news footage of an alcohol‐fueled rampage at Sydney's Cronulla Beach in 2005 in which thousands of mostly ethnic‐European males randomly attacked anyone who appeared to be Middle Eastern.

Greater Union General Manager Robert Flynn said the screenings would resume on Wednesday in all four cinemas with increased security provided by the distributor, Australian Film Syndicate.

82 Hizbullah Receives $20 million Annually from Proceeds of Pirated Films, Report

A report by RAND Corp. said Hizbullah receives $20 million annually from proceeds of pirated films in the tri‐border area of Brazil, Argentina and Paraguay. According to the report released Tuesday, organized crime is taking on a larger role in film piracy. The report warned that the "terrorist connection" could increase in the future. It said that the tri‐border area, which is "an important financing center for Islamic terrorism," channels $20 million annually to Hizbullah. At least one transfer of $3.5 million was made by known DVD pirate Assad Ahmad Barakat.

Egypt

Political front

Economic front

Egypt: Israeli gas prices could rise 70%

The Egyptian government might raise the price of the natural gas it sells to Israel's gas supplier EMG by 70%, Egyptian Minister of Petroleum and Mineral Resources Sameh Fahmi suggested in an interview. Fahmi refused to tell the Cairo daily how much EMG, which exports the Egyptian gas to Israel, is paying. He said, however: "There is no fixed price, but foreign gas exportation companies in Egypt agreed that the price should be adjusted to reach between $2.5 and $2.65 per million British thermal units." It is thought that EMG now pays $1.5 per million BTU. Egypt and EMG signed a deal updating gas prices last week after six months of negotiations, as Egypt wanted to increase prices, which have risen greatly since the original agreement in 2000. The opposition in Egypt has harshly attacked the government for selling natural gas to Israel for below‐market prices, and even taken the issue to court. A month ago the Egyptian Supreme Court ruled in favor of continued sales to Israel. Israel's new National Infrastructure Minister, whoever that may be, will be allowed to require the partners in the Tamar‐1 gas discovery ‐ or in any other gas or oil well in Israel ‐ to sell all its production to Israel. The state can also control the rate of production as it sees fit, according to the Oil Law of 1952. Fahmi emphasized in the interview that it is not the Egyptian government that is selling the gas to Israel, but a private company, EMG.

Egypt: $4.4B raised for Gaza reconstruction

During Sharm el-Sheik Gaza aid conference, where donors pledged $4.4 billion, Clinton says Obama administration has no illusions when it comes to Tehran's willingness to negotiate atom work, Obama will push for two-state solution

US Secretary of State Hillary Clinton, who arrived in the Middle East for her first official visit Monday, expressed doubt that Iran would respond to the Obama administration's expressions of interest in engaging Tehran on nuclear and other issues, a senior State

83 Department official said. Clinton was in Egypt's Sharm el-Sheik to attend an international conference to raise money for the war-torn Gaza Strip, where donors pledged $4.4 billion in new funds, according to Egypt's foreign minister, Ahmed Aboul Gheit. He added that other nations recommitted themselves to funds they promised in the past but never delivered, bringing the total to $5.2 billion in pledges. Aboul Gheit said the figure is "beyond of our expectations." Clinton made the statement on Iran in a private meeting with the foreign minister of the United Arab Emirates, Abdullah bin Zayed Al Nahyan, who had expressed to Clinton a concern among Persian Gulf nations that Obama might make a deal with Iran without full consultation with US allies. The official who described the exchange spoke on condition of anonymity because the meeting was private. Clinton told her counterpart that the Obama administration is carefully calculating its moves and will consult fully with Gulf allies. On Monday, Iranian Foreign Ministry spokesman Hasan Qashqavi told reporters in Tehran, "We have said many times that a nuclear weapon has no place in Iran's defense doctrine." Clinton also told her UAE counterpart that Iran's "worst nightmare" is an international community united against Iranian nuclear ambitions, the US official said.

Clinton then went on to declare that the Obama administration is committed to pushing intensively to find a way for Israelis and Palestinians to exist peacefully in separate states.

PNA to reveal Gaza economic plan at Egypt conference

The Palestinian National Authority (PNA) will reveal an economic plan aimed to revive the economy of Gaza Strip which has been deteriorating for nine years, a Palestinian official said. The plan would be disclosed at an international Gaza reconstruction conference scheduled for early next month in Egypt in the aftermath of an Israeli offensive against the over‐populous Palestinian enclave, said Samir Abdullah, Palestinian minister of planning. "The plan is made up of 25 articles and it involves the establishment of projects for all sectors and its period is two years," said the minister of Salam Fayyad's government based in the West Bank city of Ramallah. "This plan is a prelude for implementing the wider reform and development plan that was prepared earlier," Abdullah added. The plan ignores the sacked Hamas administration which has been controlling the Gaza Strip since June 2007 when it routed security forces loyal to President Mahmoud Abbas.

Geo strategic front

Egypt calls for suspension of ICC arrest warrant against Sudan’s al‐Bashir

84 Egypt has called for activating of Article 16 of the Rome statute of the International Criminal Court (ICC) as the only way to halt measures against the Sudanese president Omar al‐ Bashir. A Foreign Ministry spokesman Hossam Zaki said in Cairo on Thursday that the only way possible to halt measures against President Omar al‐Bashir by the ICC was to activate Article16 of the ICC’s statute which gives the United Nations Security Council the power to suspend the court’s resolution for 12 months. Zaki said the aim is to give a chance for realizing stability in Sudan and reconciliation in Darfur.

On his part the former UN Secretary General Dr. Boutros Boutros Ghali, who is chairman of the National Council for Human Rights said that the main effort to resolve the problems in Sudan is to act now and ask the Security Council to postpone the implementation of the resolution for one year to give the Sudanese government a chance to work to correct conditions in Darfur, in particular. Dr. Ghali stressed the importance of solving the problems of Sudan in order to achieve peace and stability and “save the food basket of the Arab world, particularly since we face a severe economic crisis.”

On the other hand, the head of the rebel Justice and Equality Movement (JEM) office in Cairo, Mohamed Sharaf said the ICC has not indicted the Khartoum government but President Bashir.

Egypt urges suspension of Beshir warrant

Egypt said called for International Criminal Court to delay its arrest warrant for Sudanese President Omar al‐Bashir for war crimes in Darfur, the official MENA news agency said.

Foreign Minister Ahmed Abul Gheit "calls on the UN Security Council to convene an emergency meeting... with the aim of taking a decision calling for the activation of article 16 of the court's constitution to delay the indictment," MENA reported. It said Egypt was "greatly disturbed" by the warrant against Beshir and called on the Security Council to "assume its responsibility towards maintaining peace and security in Sudan."

Egypt's Pachin signs deal with India's Micro Inks

A subsidiary of Egyptian paintmaker Pachin (PACH.CA)(PCLDq.L) has signed a partnership deal with India's Micro Inks Ltd, part of German ink firm Huber Group, Pachin said. The deal will allow Pachin Inks to manufacture and sell offset printing inks using Micro Ink's technical expertise and Huber Group brand names and trademarks in Egypt and Libya, the firm said in a statement. It did not provide financial details of the deal. "This partnership fits well with the company's

85 strategy of establishing alliances with global manufacturers," Pachin's chairman, Sherif Shawki, said in a statement.

Somali Pirates Release Egyptian Ship

Egyptian officials say Somali pirates have released an Egyptian cargo ship and its 28‐member crew after more than two months in captivity. The officials say the cargo ship Blue Star was released Thursday following negotiations with the captors. It is not clear whether a ransom was paid. The officials say the ship was seized on New Year's Day by 15 pirates as it passed by the coast of Somalia. The vessel carried a cargo of 6,000 tons of fertilizer. Somali pirates hijacked more than 40 ships in 2008, sometimes getting millions of dollars in ransom for their release. The attacks have prompted a number of countries, including the United States and China, to begin conducting naval patrols near Somalia.

US warns citizens in Egypt after spate of attacks

The US embassy in Egypt urged its citizens take precautions following a deadly bombing in a tourist bazaar in Cairo last month, saying more attacks could be planned. A French teenage girl was killed and two dozen people wounded in the February 22 bombing in the famed Khan el‐ Khalili market, where five days later an American teacher suffered slight cuts when a man knifed him in the face. It listed a third incident on February 28 in the Cairo metro, in which a man threw an incendiary bottle that failed to explode.

French Consul General Marie Masdupuy said it was desirable for nationals "to avoid crowds, particularly in the souks" as well as peak visiting times at tourist sites.

And an alert on the British Foreign Office website said: "There is a high threat from terrorism in Egypt. Attacks could be indiscriminate, including in places frequented by expatriates and foreign travellers, such as hotels and restaurants."

UN chief presses US for stronger UN leadership

At his first meeting with U.S. Secretary of State Hillary Rodham Clinton, the U.N. chief pressed for more money and stronger American leadership on climate change, the Middle East, chaos in Somalia and justice in Darfur. U.N. Secretary‐General Ban Ki‐moon said he was encouraged by

86 Clinton's response to his request for additional cash for peacekeepers and other badly stretched U.N. priorities. They spoke on the sidelines of an international conference in Egypt on Monday that raised $5.2 billion in pledges for rebuilding Gaza, at the conclusion of the U.N. secretary‐ general's nine‐day, six‐nation African tour.

Egypt best placed to talk to Hamas ‐ Miliband

Foreign Secretary David Miliband said that talking to the Palestinian Islamist movement Hamas was "the right thing to do" but Egypt and other parties were best placed to do it.

In an interview with Reuters in Cairo, where Hamas and the rival Fatah group prepared on Wednesday for a national dialogue on a new Palestinian government, Miliband said Egypt was acting on behalf of the whole world in its dealings with Hamas. Britain, along with the United States and the European Union, calls Hamas a terrorist organisation and refuses to have talks with the group, which won Palestinian elections in 2006 and has controlled Gaza since 2007. Miliband said: "Egypt has been nominated ... to speak to Hamas on behalf of the Arab League but actually on behalf of the whole world. Others speak to Hamas. That's the right thing to do and I think we should let the Egyptians take this forward."

AL-BESHIR EXPELS AID GROUPS, ARAB LEAGUE TO CONTEST ARREST WARRANT

Sudanese President Omar Al-Beshir expelled 10 aid organizations in the wake of the arrest warrant issued by the International Criminal Court (ICC) Wednesday, which he labeled a “conspiracy.” “This is an attempt to get at Sudan,” he told a cabinet meeting Thursday, labeling the United Nations, the ICC and other organizations “tools of the new colonialism.” After the warrant was issued Monday, Al-Beshir ordered the expulsion of 10 aid groups in Darfur, including Oxfam, Save the Children and CARE.“These organizations are definitely a lifeline, so putting a halt on their activities directly affects the people of Darfur,” said journalist Lina Atallah who covered the Darfur crisis for a year and a half. UN Secretary-General Ban Ki-moon called it a “serious setback to lifesaving operations in Darfur.”This is the first arrest warrant issued against a sitting head of state. Egypt has voiced its concern over the court’s decision and is attempting to suspend the warrant for at least one year. “The court’s decision will hijack the potential peace deal in Darfur as now the rebel groups do not need to commit to it. It will also affect the Sudanese democratic process because of the internationally monitored elections that are due to be held this year,” said Sudan expert Hani Raslan from Al Ahram Center for Political and Strategic Studies.

Egypt court summons Israeli envoy for torture

87 The Israeli ambassador to Egypt, Shalom Cohen, has appeared in a Cairo court to hear charges of torture against an Egyptian war veteran. The court case was heard after Egyptian national, Abdul Rahman Mohammad Qadus, filed a lawsuit against the Israeli official, stating that Cohen had tortured him during his imprisonment in Israeli jails during and after the 1973 fourth Arab‐Israeli war, independent Egyptian daily newspaper Al‐Mesryoon reported on Monday. The 63‐year‐old Egyptian war veteran had stated that he was detained alongside 44 other Egyptian soldiers while serving in the Sinai Peninsula. He noted that Mossad agents subjected him to 'vicious torture' during his incarceration in Israeli custody ‐ 6 October 1973 till 15 November 1973 ‐ and Cohen injected him with Hepatitis C virus. Qadus has demanded a USD 100‐milllion recompense for the health problems he has sustained since being inflicted with the chronic disease, stressing that he has so far undergone numerous operations to treat the ailment. Israel occupied Sinai in the 1967 Middle East war and handed it back to Egypt under a 1979 peace treaty, the first between Israel and an Arab state. Many Egyptians still feel deep resentment and suspicion toward Israel because of its misdemeanors and the treatment of Palestinians seeking statehood in Gaza and the occupied West Bank.

Officials slam Egypt for Marzouk visit

Defense officials slammed Egypt for allowing Hamas No. 2 Moussa Abu Marzouk to enter the Gaza Strip last week following reconciliation talks the terror group held with Fatah in Cairo. One official told that Abu Marzouk, 58, spent nearly 24 hours in Gaza after entering from Sinai on Thursday night, visiting family and his parents' graves. It was his first visit to the Strip in 30 years. He was born in the Rafah refugee camp.

The officials said that while Egypt denied allowing Abu Marzouk into Gaza, he was in fact allowed to cross into Gaza above ground and not via a tunnel like some Hamas men have done in the past. "This is a slap in the face," a defense official said. "Abu Marzouk is a senior terrorist and Egypt is helping Hamas by allowing him into Gaza."

The decision to allow Abu Marzouk into Gaza was made without telling Israel and was understood in the Defense Ministry as Egypt's way of expressing its anger with Prime Minister Ehud Olmert's rejection last month of Cairo's proposal for a cease‐fire with Hamas as well as for using other channels to negotiate a deal with Hamas for the release of abducted soldier Gilad Schalit. "Egypt is upset at Israel for rejecting the proposal and for using others as mediators," the official said. Defense Minister Ehud Barak was working together with the IDF to formulate a response to the continued Kassam attacks, officials in the ministry said. According to defense officials, Hamas is continuing to smuggle weapons into the Gaza Strip at a rapid pace, despite last week's bombing by the IDF of several smuggling tunnels under the Philadelphi Corridor.

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Social front

Egypt reports 57th human case of bird flu

An Egyptian boy at the age of two years and eight months has contracted bird flu virus, bringing the number of human case of the avian influenza to 57 in the country, a Health Ministry spokesman said. The boy, Abdullah Nagy Amran, comes from the northern Egyptian governorate of Alexandria, some 220 km northwest of Cairo, the state MENA news agency quoted the spokesman Abdel Rahman Shahine as saying. The boy showed symptoms after contacting with dead birds on Wednesday, and he is in a stable condition after being admitted to a hospital and given the antiviral drug Tamiflu, said Shahine. This is the second human case of bird flu less than a week in Egypt, where millions of families raise poultry as a source of food and income.

Jordan

Political front

Government denies ‘soft containment’ of journalists

The government questioned the results of a study indicating that 49 per cent of media opinion leaders are subject to "soft containment", while a media activist confirmed the findings and placed blame on the Kingdom’s journalists. The survey, conducted by Al Quds Centre for Political Studies and released on Saturday, indicated that some 70 per cent of journalists and media personnel in the Kingdom believe to a "high and medium" degree that the government resorts to tactics such as awarding appointments in governmental or semi-governmental organisations and financial incentives to buy the allegiance of media personnel and avoid bad press, a claim the government denied. Minister of State for Media Affairs and Communications Nabil Sharif said the study misrepresented journalists, rejecting as baseless claims that the government resorts to “soft containment” methods. "I assert that the current government has not extended any privileges or financial incentives to shut journalists up or buy their allegiance. The government believes in positive criticism and is keen on allowing the freedom of expression," Sharif told The Jordan Times in a phone interview yesterday. However, Centre for Defending the Freedom of Journalists Director Nidal Mansour said the results of the study "were not a surprise", noting that all governments seek to win over journalists. Mansour also called for drafting a code of ethics at media outlets to identify acceptable standards in terms of receiving gifts and favours, adding that “soft

89 containment” methods are considered bribes. Meanwhile, the Jordan Press Association said it is looking into the study and will issue a statement today.

Economic front

Trans Global drops case against Jordan

The arbitration case between the government and US-based oil firm Trans Global Petroleum has been settled, after the company withdrew its claims that the government violated the 1997 US-Jordan Bilateral Investment Treaty. The case had been at the International Centre for Settlement of Investment Disputes (ICSID) since early last year, and both sides had presented written and oral arguments before Trans Global recently moved to withdraw the case, according the Natural Resources Authority (NRA). “We knew it from day one. Our procedures were right and we were sticking to the contract. We knew we were on the right track,” NRA Director Maher Hijazin told The Jordan Times yesterday. He stressed that there was no financial settlement or behind-the-door deals leading to Trans Global withdrawing the case, adding that each party will bear the cost of their respective lawyers. A statement from the company received by The Jordan Times yesterday confirmed the withdrawal of the case, adding that it was moved to settle outside the arbitration court “so as not to waste time and effort vital to paving the way to utilise oil prospects in the Dead Sea”. The government, in turn, approved settling the case provided that Trans Global drops all “direct or indirect” claims and cases against the government. Had the case proceeded, World Bank arbitrators would have determined whether NRA actions and treatment of Trans Global’s oil concession violated the US- Jordan agreement. The government had previously requested to have all of Trans Global’s claims made in an April hearing considered "manifestly without legal merit", under Rule 41 of ICSID Arbitration Rules. According to Trans Global’s legal representatives, two claims concerning discrimination and unfair treatment were considered legally sufficient by the ICSID to go forward. The third claim upheld by ICSID, concerning the right to consultation among parties to the Bilateral Investment Treaty, was later withdrawn by the oil firm.

Advertising expenses hit 8‐year low in 2008

Advertising expenditures in 2008 hit $303 million at rate card, registering a 10 per cent increase from 2007, according to the International Advertising Association - Jordan Chapter (IAA Jordan). Print media was still in the lead, as daily and weekly newspapers took the lion's share in 2008, attracting 76 per cent of the total funds spent by advertisers. They were followed by TV with 9 per cent, while radio stations came third with 8 per cent and outdoor advertising came fourth with 6 per cent, Naim Hourani, vice president of IAA Jordan, said Monday. Major players in the payout for ads last year were the telecommunications sector, which remained the top spending industry at $45 million, Hourani said, citing a study carried out by IPSOS Advertising Spend Monitoring System.

90 Geo strategic front

Regions plan needs teamwork’

His Majesty King Abdullah underscored the urgency of implementing the decentralisation programme that seeks to involve citizens more effectively in the Kingdom's decision-making process. At a meeting yesterday with several community leaders from across the country, the King said that in the upcoming stage, concerned state institutions will study strategies for completing the project, which has the support of all stakeholders. The King also called on all those involved to deal with the programme seriously in order for it to move forward. The bottom-up strategy of striving for better local governance is expected to have a positive impact, as it will involve local communities in the decision-making process and boost development in the Kingdom's three regions: northern, central and southern. During yesterday's meeting to discuss the domestic and regional challenges facing Jordan and policies the country has adopted to deal with them, King Abdullah voiced hope for the future and confidence in Jordan's ability to face challenges and boost achievements, provided that all stakeholders work in the spirit of one team. The meeting also covered political, economic and development issues, as well as ways to deal with regional developments to best serve Jordanian and Arab interests.

US, Jordan agree to three years of environmental cooperation

Jordan and the US agreed to framework paving the way for implementing several vital environmental projects over the next three years. After signing a work programme yesterday governing environmental cooperation for 2009-11, Minister of Environment Khalid Irani said the future partnership is of "great significance" to the Kingdom as it addresses several essential environmental issues such as rehabilitating phosphate mines, enhancing ecotourism training and protecting natural reserves. The long-term goals of the three-year work programme include improved protection and conservation of the environment, increased transparency and public participation in environmental decision making as well as the promotion of a culture of environmental protection, according to the US embassy in . Irani and visiting US Deputy Assistant Secretary for Environment and Sustainable Development Dan Reifsnyder signed the agreement at the conclusion of the US-Jordan Joint Forum of Environmental Technical Cooperation. Stressing his country's support for environmental projects in the Kingdom, Reifsnyder said the US will back a plan by the Environment Ministry to establish a ranger academy to improve enforcement of environmental laws and conservation efforts.

Professional associations warn against potential Bashir arrest warrant

The Professional Associations Council (PAC) condemned attempts by the International Criminal Court (ICC) chief prosecutor to take legal action against Sudanese president Omar Bashir as a "dangerous precedent in international relations". "At a time when the court is supposed to enjoy integrity and objectivity in dealing with international incidents related to crimes against human rights and human dignity, it has became biased towards

91 the US and its allies in their war against the Arab nation," PAC President Salam Falahat said in a statement received. "The council also rejects the court's position ignoring massacres committed by the Zionists against our people in Gaza," he added. Falahat claimed that the court turned a “blind eye” to Western powers violating human rights, highlighting Guantánamo Bay prison in which the US has detained scores of Muslims, many without trial or charges. In July last year, the ICC prosecutor general asked the court for an arrest warrant for Bashir on 10 charges of genocide, war crimes and crimes against humanity in Sudan's conflict-torn western region of Darfur.

'Religion should surpass political authority in Jerusalem’

HRH Prince Hassan emphasized the importance of addressing the issue of the disputed holy city of Jerusalem from a religious point of view. The Prince made the remarks during the opening of the Arab Thought Forum’s annual seminar, which addressed the significance of the holy city of Jerusalem from different perspectives, the Jordan News Agency, Petra, reported. In his address, Prince Hassan said religion should surpass political authority in the case of the holy city, which constitutes a principal issue in the Palestinian cause. Through setting up a moral authority for all the holy sites in Jerusalem, “we can draw up an objective perspective for the future of the city where all the houses of worship, mosques, churches and synagogues would be open to all nations”, he added. The Prince also reiterated the importance of efforts exerted by Islamic institutions to deal with poverty and enhance human dignity in order to change the distorted image of Muslims at the international level.

'Jordan adheres to Arab consensus on Sudan’

Jordan said it will adhere to the Arab consensus regarding an arrest warrant against Sudanese President Omar Bashir expected to be issued by the International Criminal Court (ICC), a senior official said. Minister of State for Media Affairs and Communications Nabil Sharif said the Kingdom will commit itself to “what Arab states agree on with regard to all issues concerning Arab affairs”. But the country will at the same time respect its commitments to all international conventions and treaties it is signatory to, Sharif told reporters following a Cabinet meeting on Tuesday. At a one-day emergency meeting, Arab foreign ministers said that only Sudanese courts have jurisdiction on such matters. Bashir was defiant towards the ICC on Tuesday, telling it to "eat" an expected warrant for his arrest. Bashir's comments were made at the opening of a hydroelectric dam in Merowe, north Sudan, a day before ICC judges were due to respond to a request by Ocampo for an arrest warrant for Bashir. The opening of the dam took place in a carnival atmosphere with confetti and music, and Bashir sought to dismiss the importance of the Hague-based court's decision. The answer, Bashir said, is Sudanese development, and he announced a raft of projects in the works, including more dams, highways and more cultivation of wheat.

Syria

92 Political front

People's Assembly approves a draft law on the final account of 2007 Budget

People's Assembly, during a session headed by Deputy Speaker Ridwan Habib, on Tuesday approved a draft law on settling the final account for the state's general budget for the fiscal year 2007 and became a law. On a different note, MPs stressed the need for adopting new marketing policies to guarantee good marketing for all products, tackling the problem of surplus employment with taking into consideration the social dimension. The MPs called for reconsidering taxes and fees imposed on the agrarian and animal products.

Geo strategic front

Iran‐Syria‐Turkey‐Iraq power network to be formed

Iran’s energy minister announced that a quadripartite electricity network will be formed among Iran, Syria, Iraq, and Turkey. IRNA quoted Parviz Fattah as saying that the energy ministers of the four countries will soon hold a meeting in this regard in Baghdad.

With the power generating capacity of 120,000 MW, the four countries are considered as powerful countries in the world in the field of generating energy. Fattah went on saying that Iran is establishing two thermal power plants in Iraq one with the neighboring country’s investment and the other one as a joint venture. Construction of Syria’s Tashrin power plant is another project underway by Iran that has been invested by Syria.

Iran‐Syria relations growing and exemplary: VP

Iranian First Vice President Parviz Davoudi stated in a meeting with Syrian Prime Minister Muhammad Naji Al‐Utri in Tehran that Iran‐Syria relations are growing and exemplary. The Syrian official is here to discuss ways for the expansion of bilateral ties with Iran particularly in the banking, transportation, energy, and telecommunication fields, the Mehr News Agency reported. “The Islamic Republic of Iran has some $1.5 billion worth of projects underway in Syria,” Davoudi said and added that 40 new joint ventures were being developed. He called for giving a boost to bilateral trade considering the existing capacities in the two sides. Naji Al‐Utri appreciated the warm welcome of Iranian officials and said that Iran and Syria can enhance their relations in oil, gas and power industries, as well as the tourism sector.

93

Iranian president Underlines Strong Relations with Syria

Iranian President , Mahmoud Ahmadinejad , has underlined the deep strong standing relations between Iran and Syria, and the necessity for boosting them to meet the national interest of both and for reinforcing their steadfastness in the face of the various challenges. During his meeting with Prime Minister , Mohammed Naji Otri today, Ahmadinejad expressed appreciation of Syria's stances under the leadership of President, Bashar al‐Assad , and of Syria's pivotal and important role on all regional and international levels. He indicated that the developments in the region and in the world have proven the correct stances of the two countries , as well as their righteous joint vision regarding these developments.

International Criminal Court Arrest Warrant against al-Bashir Condemned

Syrian Workers have expressed absolute rejection and denunciation of the International Criminal Court 's arrest warrant against Sudanese President Omar Hassan al-Bashir . During a mass rally organized Thursday by Damascus Workers Union, The workers stressed solidarity with Sudanese People and leadership and underlined rejection of the injustice and false accusations on which the ICC depended to issue the arrest warrant for President Al-Bashir, considering that as a blatant interference in the internal affairs of Sudan. The Syrian workers affirmed their support to the workers, people and leadership of Sudan and their efforts to preserve people's unity and territorial integrity of Sudan. " International Criminal Court's decision against the Sudanese president aims at affecting Sudan's unity, stability and security, development and violating its sovereignty due to his support for the resistance." Deputy Chairman of the General Federation of Trade Unions Ezzat al-Kinj said. He called on Arab workers to stand by Sudan to face the pressures and challenges that obstruct the march of progress and development in it, indicating that Syria is working to achieve Arab solidarity for confronting all the challenges facing the Arab nation. Other delivered speeches underlined that the ICC warrant against Sudanese President is a new chapter of conspiracy against the Arab nation and a blatant interference in internal affairs of a sovereign independent state. Speeches added that the court's decision is part of the scheme aims at weakening Sudan to facilitate the control over its wealth and vast territories and preventing the implementation of development projects which will attain prosperity, security and stability for Sudanese people. For his part, Secretary- General of the Council of Arab Economic Unity , Ahmad Geweili , said that International Criminal Court's issuance an arrest warrant against the Sudanese President al-Bashir threatens peace process, unity and development in Sudan

Bilal: Israeli Occupation Causes Troubles for the Region

Syrian Minister of Information Muhsen Bilal said that the main reason behind the region's problems lies in the Israeli occupation of Arab lands and its continuous aggressions and violations of the security and peace of the region's peoples. During his

94 meeting with the Chairman of the Vietnamese Federation of Workers, member of the Central Committee of the Communist Party of Vietnam Ngoc Tang Dunk, Bilal stressed that peace and stability are only possible through ending occupation and restoring all the occupied Arab lands and the legitimate rights of the Palestinian people. For his part, Tang expressed the Vietnamese workers' and people's solidarity with Syrian people to restore the occupied Golan. He also expressed their support to the just Arab causes and appreciation for Syria's principled stances toward the just causes of the world's peoples. The meeting was attended by Vice-Chairman of the General Federation of Trade Union Izatt al-Kinj, Chairman of Damascus Workers Union Jamal al-Kadiri and Head of International Relations at Vietnam's Labor Union Tran Van Li.

Al-Baath Party strongly condemns the International Criminal Court arrest warrant against the

Regional Leadership of al-Baath Arab Socialist Party strongly condemned the International Criminal Court arrest warrant against the Sudanese President Omar Hassan al-Bashir. In a statement, the Party's regional Leadership described this act as a new chapter in the series of the policies of intervention in the internal affairs of a sovereign and independent country. It expressed the party and the Syrian people's support to Sudan, underlining commitment to its sovereignty, security and stability and calling for intensifying the Arab efforts to defend Sudan in the face of this dangerous conspiracy that targets the Arabs as a whole. The statement added that the Court's decision underlines the repeated use of the double standard policy, in a reference to the crimes of the Zionist entity against the Palestinian people, without any reaction or move by the international community

U.S.: No normal Syria ties until it stops backing Hamas, Hezbollah

The United States reiterated on Friday that despite a meeting held by a State Department official with the Syrian envoy to Washington, there will be no normalization of ties with the Damascus regime until it meets key American demands, including an end to "interference in Lebanese issue issue," a State Department spokesman Robert Wood said on Friday. U.S. and Syrian diplomats met Thursday in an effort to improve strained ties, though Secretary of State Hillary Rodham Clinton said it was too soon to say whether relations would improve. Syria's ambassador to the United States, Imad Moustapha, met for nearly two hours Thursday with Jeffrey Feltman, the State Department's top diplomat for the Middle East. The first such high‐ level session since September came at the request of the Obama administration, which sought to discuss how to mend the relationship and possibly work together. Though hesitant to enunciate how the administration's policies towards Syria will differ from that of the Bush administration, Wood stressed that there are certain principles which Washington will not abandon. It seems that the U.S. was caught off guard upon hearing the news that Syrian Foreign Minister Walid al‐Moallem will take part in the donor conference for the Gaza Strip that is scheduled to take place in Egypt. Administration officials, however, issued no protests, admitting that Egypt organized the conference and therefore the identity of the participants is

95 at Cairo's discretion. It is unclear whether Clinton will meet with al‐Moallem during the conference. Special envoy to the Middle East George Mitchell is not expected to visit Syria anytime soon. Clinton had described the meeting as routine, and said the administration was committed to engagement in the Middle East and promoting Arab‐Israeli peace.

Nuclear Energy

U.N. nuclear watchdog to consider Iran and Syria threat

As the U.N. nuclear watchdog’s governing body prepares to meet for the first time since US President Barack Obama took office, concerns are growing over two would‐be nuclear states. The International Atomic Energy Agency reported last month that Iran had significantly increased its stockpile of low‐enriched uranium since November.

And some experts say Tehran has enough of the material to convert into one nuclear bomb. Iran says its atomic work is peaceful and aimed at generating electricity. It began testing at its newly opened nuclear power plant at Bushehr last week. But Iran has been enriching uranium at another facility in defiance of U.N. Security Council demands to stop. The IAEA will also consider calls for a rare mandatory “special” inspection in Syria after Damascus refused to give voluntary access to resolve allegations of covert atomic activity

Syria Says Disputed Site Has Missiles

A suspected Syrian nuclear site bombed by Israel has been converted to a military installation for firing missiles, a Syrian delegate told diplomats in Vienna at a Tuesday meeting of the United Nations' nuclear watchdog agency. The statement, which took many in the room by surprise, came during a discussion of inspections of the site by the International Atomic Energy Agency, said a Vienna‐based diplomat. IAEA investigators took soil samples in June in an effort to determine whether there was nuclear development at the site as Israel has alleged. An IAEA report last week said the samples has unexplained traces of low enriched uranium used in nuclear fuel. IAEA hadn't reported Syria's claim that the site has a missile‐related military function, which Syria says means it shouldn't be open to free inspection. The Vienna‐based diplomat said the IAEA believes the site's current function is irrelevant to the investigation. IAEA officials in Vienna could not be reached, and its office at U.N. headquarters in New York had no comment on the disclosure. Israeli diplomats in New York and Washington had no comment.

96 Economic front

Social front

Lebanese journalist says President al-Assad has sought to boost Syrian-Lebanese relations

Lebanese journalist and member of al‐Marada Movement Verra Yamin said President Bashar al‐ Assad has permanently sought to boost the historic, political and personal relations with Lebanese trustworthy figures away of private interests. "Syria and Lebanon are linked by distinguished ties, thanks to the common history, geography and destiny," Yamin said at a lecture given in Damascus University titled "the role of President al‐Assad in boosting the Syrian‐ Lebanese relations." She added that Syria has not abandoned Lebanon even during the most critical conditions and opened its borders to the Lebanese people during 2006 war. She concluded by saying that President al‐Assad has depended on a heritage of historic ties between the two countries.

Israel and Palestine

Political front

Palestine: Abbas: We Are Heading Toward Reconciliation Government

President Mahmoud Abbas said, Saturday, that “ we are determinedly heading toward national reconciliation and are looking to forming a national unity government.” In a joint press conference with the European Union's foreign policy coordinator Javier Solana, President Abbas said that for this national government to work properly, it should abide by certain obligations that include the two-state solution, and other singed international obligations. Presidnet Abbas demanded the Israeli government to commit to its obligations in respect of the two-state solution, stopping colonial operations, check point removal, and applying the Road Map regarding going back to boarders of October 29, 2000. Abbas also expressed hope to find a quick international support to the reconstruction of Gaza, emphasizing the necessity of a specific mechanism for the support that goes through the Palestinian National Authority and international organizations. Solana, on the other hand, said that they (EU) will work along with the Israeli government on the previous obligations, as they already signed it with the current Israeli government, and hope to continue with the new one.

Israeli PM Olmert Warns Palestine over Rocket Attacks

97 Israel's outgoing Prime Minister, Ehud Olmert, warned Palestine over continuing rocket attacks from the Gaza Strip into Israel, BBC informed Sunday. "If the rocket fire from Gaza continues, it will be answered with a painful, harsh, strong and uncompromising response from the security forces", Olmert said at his cabinet's weekly meeting in Israel's capital, Jerusalem. His warning came as international Middle East envoy visited Gaza to see the damage caused by Israel's recent offensive. Diplomats from around the world prepare for a Gaza reconstruction conference in Egypt starting Monday. Palestinians are seeking about USD 2, 8 B in aids.

Fatah, Hamas to Form Transitional Government

The Fatah and Hamas terrorist organizations have agreed to form a new transitional government that will operate until presidential and parliamentary elections can be held. Flanked by officials from 14 different terrorist groups at a press conference in Cairo, Hamas political leader Mussa Abu Marzuq said that they had reached agreement in principle on forming a transitional government. The factions are in Cairo in an effort to end nearly two years of Arab political disunity. Ahmad Qurei, the leader of the Fatah delegation at the Egyptian‐brokered talks, said, "This government could be formed approved by all of the Palestinian factions or could be technocrat government, or [another form of] government approved by the committees," referring to the panels overseeing the specifics of the reconciliation. Meanwhile, Hamas rejected Clinton's remarks that it must recognize Israel in order to be accepted as a representative of the Arab people. "This is an unacceptable interference in the Palestinian affair," said Ismail Radwan, a spokesman for Hamas which controls the Gaza Strip. Radwan made the statement in response to Clinton's remarks that Hamas must accept the Mideast Quartet conditions for a unified Arab ruling system. The Quartet (the United States, European Union, United Nations and Russia) asked Hamas to recognize Israel, accept peace deals and abandon violence in exchange for an international recognition. These conditions were imposed on Hamas when it won the Arab elections in 2006. The international community isolated Hamas since it rejected the Quartet's demands.

Labor Chairman asks Israeli president to convince labor join coalition with Likud

Israeli online daily, Haaretz, reported that Labor party chairman, Israeli Defense Minister, Ehud Barak, has asked the Israeli president, Shimon Peres, also from the Labor party, to convince labor party members to join a coalition government with the Likud party, headed by Benjamin Netanyahu. Haaretz quoted Israel’s Channel 10 as stating that Barak asked Peres to help in convincing Labor members to join a government headed by

98 Netanyahu. Meanwhile, Netanyahu also asked Peres to convince his party to join a collation headed by the Likud, Haaretz added. The Likud leader is currently attempting to persuade various parties in Israel to join a coalition under his leadership. The labor party seems to be determined not to join a government headed by Netanyahu, and said that the party prefers to be in the opposition. On the other hand, the Kadima party, headed by Israel’s Foreign Minister, Tzipi Livni, said that it will not join a coalition with Netanyahu. On Monday, Barak met Livni in the Knesset hallways, and told her that Netanyahu is not as firm in foreign policies as he claimed to be, Haaretz reported. According to Haaretz, Barak told Livni that Netanyahu is “more flexible”, and that he “gave away more lands to the Palestinians than any of us put together”.

Geo strategic front

Lasting Peace for Palestine, ASEAN

Leaders from the Association of South East Asian Nations (ASEAN) demanded Sunday a lasting peace in Palestine, during a presidential declaration issued at the end of the 14th Summit. "Renewal efforts must be carried out by all parties to reach peace in which Israel and Palestine can coexist," the document states. Israelis and Palestinians must live pacifically together with recognized borders, as the 1850 resolution of the UN Security Council and the Arab Peace Initiative establish. Both parties must hold talks with that aim. They also stressed that health and welfare of the Palestinian people of Gaza have an utmost importance. Reconciliation steps between different factors of the Palestinian people, particularly the last accord inked among different groups to create commissions to train a national unity government, have been warmly welcomed. The ASEAN ended an active participation of all countries involved in the Conference for the Reconstruction o f Gaza, organized by Egypt in Sharm El-Sheik last Monday.

Iran's Foreign Ministry spokesman Hassan Qashqavi says Tehran welcomes Hamas-Fatah reconciliation talks.

Iran welcomes reconciliation talks between rival Palestinian factions aimed at establishing a unity government by the end of March. "Iran always supports national unity and agreement between different political factions in Palestine. We call on Palestinians to remain united and guard the achievements of their resistance (against Israel)," Iranian Foreign Ministry spokesman Hassan Qashqavi said Saturday. "Discord will lead to the violation of the rights of the Palestinian people and will only serve the interests of Israel and its international allies," he added. During the two-day Egyptian- brokered talks in Cairo, the Hamas and Fatah movements agreed to form several committees that would pave the way for a unity government and pledged to continue negotiations and work toward the election of a new government. Egypt had initially asked for the Palestinian reconciliation dialogue in November. Hamas, however, pulled out of the talks in protest at the continued detention of Hamas members in the West Bank

99 by Fatah. Qashqavi warned against Israel's "illegal approach" to demolish Palestinian homes, calling on regional and international bodies including the Organization of the Islamic Conference (OIC), the UNESCO and the United Nations to adopt a firmer stance toward Israeli actions.

Economic front

US Donates $900 Millions in Aid for Gaza

The Obama administration is preparing to give more than $900 million dollars for the reconstruction of the Gaza Strip, according to a senior US official. The revelation comes less than a week before US Secretary of State Clinton is scheduled to attend a Gaza donors conference in Cairo. The Gaza Strip sustained heavy damage during a three‐week war between Israel and the Hamas terrorist organization that ran from late‐December till mid‐January. Since Hamas is the ruling authority in Gaza, Israel attacked symbols of power such as the local parliament building, and was also forced to fight in densely populated neighborhoods used as cover by Hamas rocket crews. The Obama administration's approach to Gaza is opposite that of the Bush Administration, which refused to give money to Gaza because it is ruled by Hamas, which it elected in 2006. Responding to United Nations Relief and Works Agency's (UNRWA) appeal for $345 million for its Quick Response Plan for Gaza, the government of Qatar has allocated $10 million for UNRWA out of $40 million which it is donating to the UN as a whole. The donation follows the visit to Qatar by the Commissioner‐General of UNRWA, Karen AbuZayd. Reacting to the donation AbuZayd said: "Following this and the earlier announcement of Kuwait's donation of $34 million we look forward to hearing more Arab expressions of support for UNRWA's plans for Gaza at next week's meeting of donors in Sharm Ash Shaikh." Arab leaders want to walk away from next week's donors' conference in Cairo with at least $2.8 million, according to PA/PLO Prime Minister Salam Faya'd. The Arab leader told reporters that the money represented estimated costs of reconstructing the Gaza Strip following the 22‐days of fighting between Israel and Hamas. Meanwhile, a senior Arab League official stated that Arab countries have not delivered any of the more than $1 billion they pledged to rebuild Gaza after Israel's devastating offensive. The official says the money pledged in mid‐January has been held up because of disagreements between rival Arab terrorist groups Fatah and Hamas about who should receive the donations. He says Arab countries are waiting to see whether a solution to the disagreement is reached at an international meeting on Gaza reconstruction in Egypt on

100 Monday. Saudi Arabia pledged $1 billion for Gaza reconstruction, Qatar $250 million and Algeria $100 million.

Conflict news

The ruling Hamas party in Gaza welcomed Sharm El Shiekh donors' meeting, but warns of political extortion

Hamas has stated that this conference should not be used as a means to achieve what the Israeli occupation could not achieve by force. Spokesperson Fawzi Barhum maintained that the Israeli occupation could not defeat his party during the last Israeli war on the region, therefore, the donors meeting should not work to that end, but strctly concerned with rebuilding Gaza, where thousands of people have been displaced. Barhum welcomed the international efforts, but believed that sidelining the Palestinian legitimacy in Gaza (Hamas) would be a move in the wrong direction, confirming that the blood of the Palestinian people can not be bargained for political gains. The United States, a major donor, asserted that any funds for rebuilding should be channeled by the Palestinian Authority in Ramallah, where the Palestinian President, Mahmoud Abbas of Fatah, holds power. The United States, western governments and Israel have boycotted Hamas since the party won the parliamentary elections of 2006. Such bodies have demanded that Hamas recognize Israel, renounce violence and accept past signed peace agreements with Israel to win recognition. Despite Hamas complying, on the record, with such demands, the boycott has not been lifted.

US Remains Committed to Dividing Israel

US Secretary of State Hillary Clinton stated on Shabbat that the United States remains committed to a two‐state solution, i.e., dividing Israel to create an Arab terrorist state in its midst. In an interview on the VOICE OF AMERICA, Clinton said "obviously, this is a sensitive time in Israeli politics as they seek to form a government, but I will take the opportunity to reaffirm the strength of the US‐Israel relationship and talk about the best way to move peace forward. We are still committed to a two‐state solution." Clinton went on to say that she would be working along with United States President Barack Obama's special Middle East envoy George Mitchell to "help make progress toward a negotiated agreement to end the conflict between Israel and the Palestinians [sic]; to create an independent, viable Palestinian state in both Judea and Samaria and Gaza; and to provide Israel with the peace and security that it has long sought and which the people deserve to have". Meanwhile, Clinton sent several messages this week to

101 Jerusalem warning the Israeli government against maintaining a blockade on Hamas‐ruled Gaza, according to a senior Israeli political source. Senior US officials reportedly told Israeli counterparts last week that they felt Jerusalem wasn't doing enough to speed up the flow of goods through the Gaza Strip border crossings. Israel responded that ongoing Arab attacks along the border and at some of the crossings, as well as Hamas' continued refusal to release an abducted Israeli soldier, are the primary reasons for the delays. The Obama Administration has made it clear that it does not intend to support the policy of its predecessor in isolating and blockading Hamas‐ruled Gaza. Clinton is scheduled to arrive in Israel next Tuesday to press the issue.

The Rockets Keep Coming From Gaza

Arab terrorists in Gaza fired seven rockets at Israel on Shabbat. No one was killed or wounded in the attacks, with two of the rockets striking near the Israeli town of Ashkelon, around 21 kilometers (13 miles) from Gaza. One rocket damaged a school, which was empty. Arab terrorists have fired more than 100 rockets and mortar rounds at Israel since the January 18 "truce" that ended Israel's defensive military action on Gaza. Israel has in turn responded with several air assaults targeting terrorists, weapons caches and smuggling tunnels beneath the Gaza‐Egypt border. On Friday, terrorists fired a Qassam rocket that hit an open area in the Sdot Negev region. No one was wounded and no damage was caused. A number of Sderot residents were treated for shock following Thursday's attack in which tragedy was narrowly averted when a rocket landed close to two houses. In response to that attack, IAF (Israel Air Force) aircraft hit smuggling tunnels in the southern Gaza Strip. Terrorist rockets also hit the Eshkol and Sha'ar Hanegev regions Thursday, causing no casualties or damage. Two Qassam rockets struck the Sha'ar Hanegev regional council in the western Negev on Wednesday, causing no injuries or damages. On Monday, an IAF helicopter assaulted a group of Arab terrorists in the Gaza Strip as they attempted to flee the border area where they had been planting explosives aimed against IDF (Israel Defense Forces) troops. Shortly after the incident, a Qassam rocket fired from Gaza exploded in an open field in the Sha'ar Hanegev Regional Council. Later Monday afternoon, another rocket was fired from the Gaza Strip into the same area. There were no casualties or damages reported in either incident.

102

BUSINESS AND POLITICS IN THE MUSLIM WORLD

Gulf Cooperation Council (GCC)

Madiha Kaukab

Weekly Report: from 28th Feb 2009 to 6th March 2009

Presentation Date: 11th March 2009

Following news monitoring report is based on the important political, social, economic and International events occurred in Gulf Cooperation Council States.

OUT LINE

GCC

King of Bahrain receives foreign ministers of UAE, Kuwait

GCC keen to establish peaceful nuclear programme, says Kuwait

Qatar, Kuwait, Dubai Shares Fall on Earnings Outlook, U.S. Drop

Israeli media denounced for insulting the Prophet

UAE

Social Desk

Education Reform Moves Reviewed as Student Project Gets Backing

Math Muddle? e‐Teacher

PlayStations, iPods as New Teaching Tools New Steps Planned to Improve Tourism

Media Council Launches UAE Yearbook, DVD

Bread Prices to be fixed

Unverified Articles Could Invite Penalties, Warns MoHAsma Ali Zain

103 Human Rights/ Trafficking Desk

UAE will do everything to eradicate Human Trafficking

Employer Must Pay Accommodation Allowance

Human dignity is major concern for UAE : envoy

Foreign Labor Desk 4 in 10 Expats Plan on ‘Leaving Next Year’Martin Croucher

Expats Unable to Cash in On Currency Rate

IR Desk Abu Dhabi to Host SAARC Film Festival

US envoy in UAE on Mideast peace mission

Obama Thanks UAE Leaders.

UAE voices concern over ICC's warrant on Sudan's stability

Economic Desk Financial Crisis Not Impacting Crimes in DubaiAmira Agarib

SAUDI ARABIA

Social Desk Uphold truth without fear: King Abdullah

We’ll work to protect Arab women and children

Jeddah legalizing informal economy

Industrial city for families planned

Friends of Jeddah’ join hands to clean up Red Sea IR Desk

Saudi urges joint Arab strategy on Iran

Saudi Arabia Flays Israel’s Plan to Evict 1,500 Palestinians

104 Editorial: Pledging aid for Gaza was the easiest bit

Pak CG meets prisoners

Chaudhary named Pak investment counselor in Kingdom

KUWAIT

Political Desk Kuwaiti MPs file new request to quiz PM

MPs remain split over bills to rescue Kuwait economy

Social Desk

Transparency Society holds discussion

New arrivals face obstacles

Blair opens consultancy, signs Kuwait

Expert hits out at lies - ‘Kuwait was always sovereign state’

IR Desk

Polish minister woos Kuwaiti investors

Kuwait gives $200m for Gaza reconstruction

‘Kuwait-Iraq border’ issue has been settled, says FM

Economic Desk

Kuwait’s Al-Kharafi Group to develop Saudi economic city

Kuwait oil exports to Japan surge 26.6 pc

BAHRAIN

Social Desk eGOVERNMENT AUTHORITY OF BAHRAIN JOINS HANDS WITH GULF MARCOM AND HILL & KNOWLTON Protesters burn Bahrain police car

105 Human Trafficking/ Rights Desk

Bahrain backs trafficking war Bahrain monitors medicine alert

Law to protect maids vowed

Bahraini Women Seek Equal Nationality Rights

IR Desk

Iran seeks closer ties with Bahrain

Spat erupts with Iran over cleric's boast

Bahrain to host first GCC Games

Economic Desk Bahrain money supply growth slows for 4th month

Bahrain central bank loosens bank lending curbs

Al Salam Bank ‐ Bahrain is the Golden Sponsor For 9th GCC Banking Conference

$30 Billion in Projects Underway in Bahrain

OMAN

Social Desk

Oman Joins Fight Against Fraud

IR Desk Confident Pakistan off to Oman looking for Davis Cup triumph

French president visits Oman

Omani Award Conferred on Lebanese President

Economic Desk Middle East, North Africa Destinations to See Decrease in Demand for 2009

Oman pursuing big port despite downturn

Oman to issue solar power tender

106 India's Bharat Oman defers share offer as mkts sink

Vale keen to invest in mining, gas exploration in Oman

OITE bags gold award in Oman Web Awards 2008

QATAR

Social Desk Qatar to set internet policy

Qatar to introduce premarital medical tests

Qatar Airways names jet “Gaza”

Parliament Speaker meets Qatar Crown Prince

IR Desk U.S. Files Charges against enemy combatant

Qatari Emir to visit Chad for talks on tension with Sudan

Parliament Speaker visits Qatar, Yemen

Qatar releases 3 Saudi boats

Qatar Singapore sign MOUs

Oil and Gas Indians to Set Up Petrochemical Complex in Qatar

Pakistan considering Qatari LNG over Iranian gas

Economic Desk Qatar must step up efforts to launch single regulator

Atlanta Companies Sought for Qatar Trade Conference

DETAILED REPORT

107

GCC

King of Bahrain receives foreign ministers of UAE, Kuwait King of Bahrain, Sheikh Hamad bin Isa Al‐Khalifa, received here Sunday evening UAE Foreign Minister, H.H. Sheikh Abdullah bin Zayed Al Nahyan and Kuwaiti Deputy Prime Minister and Foreign Minister, Dr. Sheikh Mohammed Sabah Al‐Salim Al‐Sabah.

Sheikh Hamad expressed profound happiness on the strong relations bonding all member states of the Gulf Cooperation Council (GCC). He expressed deep appreciation on the roles being played by Their Highnesses, leaders of GCC member states in support of the GCC drive, to achieve GCC objectives and aspirations for better future for their peoples.

The two ministers briefed the Bahraini monarch about the outcome of the GCC foreign ministers meeting which ended in Riyadh on Sunday. The meeting reiterated GCC's support and solidarity with Bahrain. They also briefed King Hamad about latest developments on the regional and Arab scenes, which the GCC ministers deliberated on during the meeting.

GCC keen to establish peaceful nuclear programme, says Kuwait Director General of Kuwait Institute for Scientific Research (KISR) Dr Naji Al‐Mutairi said Saturday the GCC countries sought to establish a joint nuclear program to be used for peaceful purposes. Al‐Mutairi, in a statement distributed here, praised keenness of His Highness the Amir of Kuwait Sheikh Sabah Al‐Ahmad Al‐Sabah to establishing the peaceful nuclear program in Kuwait. Authorities in Kuwait are “exerting serious and rapid efforts” to honor keenness of Sheikh Sabah, he said, which would be a “turning point” in the development of Kuwait. Kuwait was the GCC country which proposed, during the 2006 Riyadh Gulf Cooperation Council (GCC) summit, the establishment of a peaceful nuclear program. After the GCC leaders approved the proposal, explained Al‐Mutairi, studies were prepared to establish a “common and public” nuclear project. A Gulf team was formed in mid‐2007 working under the GCC Secretariat to prepare for the project.

KISR, he said, was part of this team, and was the liaison body with the Vienna‐based International Atomic Energy Agency (IAEA). KISR, said Al‐Mutairi, is contributing to preparing elaborated studies for the peaceful use of nuclear energy as well as discussing proposed projects sent by the IAEA. The Gulf team, said the KISR chief, has prepared an initial feasibility study in coordination with the IAEA. The study, he added, included many domains like electricity, water desalination by using nuclear energy, infrastructure, legislation and human resources for the common GCC project. KISR, he said, is working as a coordinator for an integrated national plan for safety and security. This plan aims at preventing and how to deal with radioactive threats, smuggling of radioactive and nuclear materials. IAEA’s experts, said Al‐Mutairi, agreed to help

108 the GCC countries to building the infrastructure of the nuclear‐related institutes including the storing of radioactive materials.

Qatar, Kuwait, Dubai Shares Fall on Earnings Outlook, U.S. Drop Qatari, Kuwaiti and Dubai shares retreated after the Standard & Poor’s 500 Index dropped to a 12‐ year low and as investors speculated regional companies may post declines in first‐quarter profit.

Industries Qatar fell for a second day after it recorded a 93 percent slump in fourth‐quarter net income. Al Ahli Bank of Kuwait KSC slid to its lowest in almost three years as full‐year profit tumbled 40 percent. Deyaar Development PJSC dropped after saying it won’t pay any dividend for 2008, while Union Properties PJSC fell as it halted construction of its Formula One theme park.

Al Ahli Bank of Kuwait lost 3.5 percent to 560 fils, its lowest close since April 2006. The fourth‐ largest lender by market value in the country said full‐year profit fell 40 percent to 46 million dinars ($157 million) as it made provisions for the impact of the global financial crisis.

Saudi Arabia’s Tadawul All Share Index added 0.7 percent, trimming this week’s decline to 2.8 percent. The Abu Dhabi Securities Exchange General Index gained 3 percent, bringing the eight‐ day rally to 11 percent. Oman’s Muscat Securities Market 30 Index rose 0.2 percent, while the Bahrain All Share Index advanced 0.7 percent.

Israeli media denounced for insulting the Prophet GCC Secretary‐General Abdul Rahman Al‐Attiyah yesterday denounced the derogatory remarks made about the Prophet Muhammad (peace be upon him) in an Israeli television program. “These ugly remarks made against the Prophet is part of a malicious campaign against Muslims launched by the Jewish state,” he said in a statement on the sidelines of a GCC foreign ministers’ meeting.

Al‐Attiyah accused Israeli Channel 10 of organizing a blasphemous campaign against Islam and Christianity, saying that “this outrageous act is nothing but part of a series of ferocious attacks

109 made by the state‐sponsored Israeli media on the Islamic value system, teachings and sanctities.”

The GCC ministers met under the chairmanship of Yusuf bin Alawi bin Abdullah of Oman and discussed a range of regional and international issues, including Palestine, Lebanon, Somalia, Darfur, Iran and Iraq. The peaceful use of nuclear technology was also addressed. The GCC ministers, however, reiterated their demand to make the Middle East a nuclear arms‐free zone. All the six foreign ministers attended the 110th ministerial session at the GCC General Secretariat. Prince Saud Al‐Faisal led the Kingdom’s delegation to the session.

UAE Social Desk

Education Reform Moves Reviewed as Student Project Gets Backing

The Education Ministry’s reform projects for a modern education system with national expertise, decentralised policies and practices for decision‐making, were reviewed on Monday.

The review was carried out by Dr Hanif Hassan, Minister of Education, and Heidi Stopper, HR Director of Astrium. It highlighted the importance of partnerships between the national education institutions and societal organisations.

Math Muddle? e‐Teacher

An online teaching facility has been launched to help Grade XII students in Math and Physics subjects. E‐teacher, initiated by the Ministry of Education (MOE), aims to boost learning of the two subjects by uploading model question papers and learning tips.

PlayStations, iPods as New Teaching Tools

PlayStations and iPods could soon be used to teach in public schools with the Education Ministry expressing keenness to experiment with different teaching methods.

110 Public schools can use popular gizmos if they helped pupils learn lessons, a senior Education Ministry official said on Sunday, ahead of an education forum to be held in Dubai next week. “We are open to any kind of development in schools. Our focus is centred on student‐learning approach. Our aim is to make public schools equal if not better than private schools. We want to open the floor for teachers to use technology like PlayStations and iPods,” Dr Abdalla Al Amiri, Advisor to Minister of Education Dr Hanif Hassan, told Khaleej Times after announcing the opening dates of the annual Global Education Forum (GEF).

New Steps Planned to Improve Tourism

The chairman of the Dubai Department of Tourism and Commerce Marketing said the government will take new steps to mitigate the effects of the global economic downturn on the local tourism industry.

DTCM will partner with the government‐supported Emirates Airline to bring 2,000 international reporters and tour operators to Dubai at the end of the month, Khaled Ahmed bin Sulayem said Tuesday on the sidelines of the World of Perishables expo at the Airport Expo Centre in Dubai. The new plan follows an earlier initiative in which the tourism body asked local hoteliers to cut room rates by 40 to 60 per cent.

Media Council Launches UAE Yearbook, DVD The National Media Council (NMC) on Monday launched the 2009 edition of the UAE Yearbook that provides a comprehensive analysis of developments in the country, a pocket-sized ‘UAE At A Glance’ and a DVD.

In the yearbook’s foreword, Saqr Ghobash Saeed Ghobash, Minister of Labour and Chairman of the NMC, writes, ‘The recording of recent events, in the form of the UAE Yearbook, and indeed of the many official reports issued by various government and private organisations on which much of the yearbook data is based, is a valuable tool in defining the latest developments in the country.

Bread Prices to be fixed The Ministry of Economy has set up a committee tasked with devising uniform standards and fixing prices of bread in all bakeries in the country, to prevent manipulation of weight and the quality of loaves.

111 Dr Hashim Al Nauimi, Director of the Consumer Protection Department, told Khaleej Times on Monday that the step was taken after the ministry found some bakeries manipulating the weight of bread loaves following its decision to reduce the prices of bread.

Unverified Articles Could Invite Penalties, Warns MoHAsma Ali Zain The Ministry of Health (MoH) can take action against journalists and media organisations if unverified medical services and products are highlighted through articles.

Action is taken only if the article specifically details a medical centre’s services and products and glorifies them without verification, which is a form of indirect advertisement. The ministry refers such articles to the National Media Council (NMC) for action that may include unspecified monetary fines depending on the severity of the violation.

In 2007, the ministry banned all kinds of medical advertisements in the local media without approval under the law regulating health advertisements. However, monitoring of indirect advertising is part of an internal ministerial decree.

Human Rights/ Trafficking Desk

UAE will do everything to eradicate Human Trafficking

The UAE is serious about fulfilling its domestic and international responsibilities in combating human trafficking, UAE Minister of State for Foreign Affairs Dr Mohammed Anwar Gargash said in Manama on Monday.

Dr Gargash is heading a UAE delegation to the two‐day conference, titled ‘Human trafficking at the crossroads: Private‐public partnership to fight human trafficking’, which is being held under the patronage of Shaikha Sabeeka bint Ibrahim Al Khalifa, wife of the King of Bahrain, and Suzanne Mubarak, Egypt’s First Lady.

112 Employer Must Pay Accommodation Allowance The employer must pay accommodation allowance if the employee is not provided housing, or else the Ministry of Labour will not issue a work permit for the expatriate worker, according to ministry officials on Monday.

The Disputes Committee clarified the condition at the open day on Monday and approved the work permit of a driver after verifying that he had been provided with suitable accommodation apart from his monthly salary.

Human dignity is major concern for UAE : envoy HE Obaid Salim Al Za'abi, UAE Permanent Representative at the UN Headquarters in Geneva, said today human dignity has been the main concern for the United Arab Emirates since its creation.

''The UAE has acceded to many international conventions and will continue doing so. The United Arab Emirates has achieved considerable progress in a short amount of time, for example an association for human rights has been set up in order to raise awareness on human rights issues, among other measures undertaken in that field, the ambassador told the tenth regular session of the UN Human Rights Council at the Palais des Nations in Geneva. The meeting will run up to 27 Match.

Foreign Labor Desk

4 in 10 Expats Plan on ‘Leaving Next Year’Martin Croucher

Four out of ten expatriates in the UAE say they are considering leaving the country in the next year, a survey has found.

Almost a fifth of respondents feel they are likely to lose their jobs over the next 12 months and eight per cent said that they were already unemployed. In addition, the survey found that 75 per cent of respondents are dissatisfied with the cost of living in the Emirates, and 45 per cent say they are “very dissatisfied”. In addition the survey found that 77 per cent of expatriates with children are dissatisfied with the standard of education relative to the cost. Some 34 per cent of expatriates say they are considering starting their own business over the next year. Healey said that the government has a role to play in the cost of setting up a company. Compared to other countries expatriates could also live in, the UAE was considered better by 58 per cent of

113 respondents. Healey said that the figure supported the 4 out of 10 ratio for those looking to leave.

Dan Healey, CEO of Real Opinions, the research company which conducted the survey, said that the recent Dh36 billion bond issue by the federal government could restore job security.

Expats Unable to Cash in On Currency Rate

The scene at the money exchanges was normal even as the Indian rupee value dropped to its lowest on Monday. A majority was disappointed about having insufficient funds to take advantage of the exchange rate.

The rush, which was common at the exchange houses earlier, was nowhere to be seen as many people had already repatriated their monthly quotas. According to the authorities of the UAE Exchange, one dirham fetched Dh13.94 till late evening on Monday.

IR Desk

Abu Dhabi to Host SAARC Film Festival

In an effort to strengthen cooperation among South Asian Association for Regional Cooperation (SAARC) nations, the embassies of SAARC countries in Abu Dhabi will hold the first “SAARC Film Festival” in the capital from March 7 to 11.

Six films from five SAARC nations will be screened at the film festival at the Abu Dhabi Authority for Culture and Heritage (ADACH). Entry is free and open to the public. Among the movies to be screened are Ahah (Bangladesh), Rang De Basanti (India), Caravan (Nepal), Khuda Kay Liye (Pakistan), Samanala Thatu and Nisalagira (Sri Lanka).

US envoy in UAE on Mideast peace mission

114

US President Barack Obama’s Middle East peace envoy George Mitchell discussed with Abu Dhabi Crown Prince Shaikh Mohammad bin Zayed Al Nahayan ways of achieving a lasting ceasefire in the Gaza Strip, the official WAM news agency reported.

Mitchell’s visit came as part of his second regional tour that included Israel and Jordan ahead of a donors’ conference on Gaza in Egypt’s Sharm el‐Sheikh on Monday.

Obama Thanks UAE Leaders

The President, His Highness Shaikh Khalifa bin Zayed Al Nahyan received a cable of thanks from United States President Barack Obama in reply to the greetings sent to him by Shaikh Khalifa.

His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice‐President and Prime Minister of the UAE and Ruler of Dubai, also received a similar cable from Obama. The two leaders also sent greetings to President Nebojsa Radmanovic on the Independence Day of Bosnia and Herzegovina.

UAE voices concern over ICC's warrant on Sudan's stability UAE voiced today its concern over the negative consequences of the warrant issued by the International Criminal Court (ICC) for the arrest of Sudanese President Omar Al Beshir on stability of Sudan and the ongoing political dialogue there.

A UAE Foreign Ministry source said the ''UAE is also worried about the ongoing political dialogue and efforts to reinvigorate the political process in Darfur in regards to the implementation of the peace agreement in Sudan. ''The UAE calls on the UN Security Council to activate article 16 of the ICC's statute for deferring the warrant for arrest, ''the source added.

Economic Desk

Financial Crisis Not Impacting Crimes in DubaiAmira Agarib

115 The global financial crisis has not had any impact on crimes in Dubai, according to Lieutenant‐ General. Dhahi Khalfan Tamim, Commander‐in‐Chief of Dubai Police.

During a forum, hosted by the police to promote Dubai as a luxury destination on Tuesday, Lt‐ Gen Tamim said disputes such as those involving dud cheques occur the world over. Marwan bin Ghalita, Real Estate Regulatory Agency CEO, said all countries should review their policies in view of the current financial crisis.

“Although workers are leaving Dubai, but Dubai will become stronger and the workers will come back,” he said. “In the past few years, Dubai focused on quality, but there has been a lack of planning,” he added.

SAUDI ARABIA

Social Desk Uphold truth without fear: King Abdullah

Custodian of the Two Holy Mosques King Abdullah yesterday urged the newly appointed members of the Supreme Judicial Council and the Council of Senior Scholars to uphold the truth in all their dealings. “Truth is above everything,” he said.

In an extempore speech during a reception at Al‐Yamamah Palace in Riyadh, King Abdullah urged the officials to work hard in serving humanity, Islam and morality. The reception was attended by Sheikh Abdul Aziz Al‐Asheikh, grand mufti and chairman of the Council of Senior Scholars, and Saleh Bin‐Humaid, chairman of the Supreme Judicial Council.

The king expressed happiness over the growth of Muslim populations all over the world. “It has been said that Muslims are the largest religious community in the world. This is a great blessing.”

He said Al‐Qaeda militants in the Kingdom and elsewhere have tarnished Muslims’ image. He said most people have now understood the reality of Islam being a religion of peace and justice. “They know that you are good people and you work to guide humanity to the right path. I can

116 tell you that Islam will remain powerful by the will of God and by the good work of its followers.”

King Abdullah, meanwhile, received Fahd Al‐Zaid, Abdul Aziz Turkistani and Hani Sindi, the newly appointed ambassadors to Jordan, Japan and Burkina Faso respectively, and urged them to work to improve relations with those countries.

We’ll work to protect Arab women and children

Saudi Arabia will mobilize its efforts to protect the rights of women and children in the Kingdom as well as in the Arab world, said Princess Adela bint Abdullah, vice president of the National Family Safety Program (NFSP).

The princess was speaking to Arab News on the sidelines of the Third Arab ISPCAN Regional Conference on Child Protection, which is under way in Riyadh. The conference is sponsored by the NFSP in collaboration with the International Society for Prevention of Child Abuse and Neglect (ISPCAN). Princess Adela said the NFSP would solicit the cooperation of lawyers, judicial bodies, police, government and nongovernmental organizations to safeguard the rights of women and children. “We want to put all concerned bodies on board to carry out this program successfully,” she said.

“We would also train young Saudi women to become specialists in counseling families against child abuse. Successful trainees would be in a position to attend to the social, medical and psychological needs of children and their families,” she said, pointing out that the NFSP would also organize awareness programs for parents and schoolchildren. She said a hotline would be set up for people to lodge complaints about abuse and violence against women and children. “Even victims would be able to complain directly through this telephone number,” she said. Princess Adela said the Kingdom’s experience in successfully implementing the program would be shared with other Arab states. She said the media in the Kingdom has to play a prominent role in disseminating information about this program. “Without the media support, we cannot carry out this program effectively.”

117 Jeddah legalizing informal economy Saudi women who make and sell homemade products are now able to legitimize their work. The Jeddah municipality will issue a special license for any woman who wants to operate a business from her home, according to a municipal official.

“Women who sell homemade cooking and handicrafts or intend to do any other business from their homes can obtain the license to make her work legal and flourishing,” said Mahmoud Kinsarah, head of the municipality’s Licensing and Commercial Monitoring Department. He was speaking at a press conference held yesterday to announce the launch of the 20th Environmental Health Forum, which will be held in Abruq Al‐Righama next Saturday.

Industrial city for families planned Efforts are under way to establish a small industrial city meant exclusively for productive families in the private sector in Yanbu, according to Hessah bint Abdul Rahman Al‐Aun, a businesswoman who promotes the project

“No obstacle will stop the plan as I already have agreements with various ministries and provincial governors to set up the project, which basically aims at supporting poor families. A Chinese company will undertake the training of women and other workers to work at the factories in the industrial city,” Hessah told several businessmen and members of the Yanbu Chamber of Commerce and Industry at a meeting yesterday. “Yanbu Gov. Ibrahim Al‐Sultan has promised the land for the SR200 million city occupying an area of 500,000 square meters,” Hessah said. She hoped that the city would provide employment for 6,000 families and support approximately 40,000 individuals.

The primary aim of the project is to help women who work at home and earn money to support their dependents. “This is a strategic national project as it aims at finding employment for the unemployed and helping them to make economic progress. All participants in the city’s activities will profit from it.”

Friends of Jeddah’ join hands to clean up Red Sea Volunteers remove underwater rubbish near the Fatimah Mosque at Jeddah’s northern seaside.

118 The Jeddah municipality recently formed a new department under the name Friends of Jeddah, which aims at supporting all types of volunteer work that concerns the development of the city, according to Jamal Al‐Mundhiri, head of the department.

IR Desk

Saudi urges joint Arab strategy on Iran

Saudi Foreign Minister Prince Saud Al Faisal called on Tuesday for a joint Arab strategy to deal with the ‘Iranian challenge’ at ameeting of Arab foreign ministers in the Egyptian capital.

‘In order to cement Arab reconciliation we need a common vision for issues that concern Arab security and deal with the Iranian challenge,’ including its nuclear drive, he said. The relationship between Sunni‐ruled Arab states in the Gulf, including oil kingpin Saudi Arabia, and Shia Iran has long been strained amid concern about Teheran’s nuclear program.

At the UN General Assembly last year, the Saudi prince urged Iran to comply with its nuclear obligations to spare the Middle East ‘devastating conflicts, futile arms races and serious environmental hazards.’ The West fears Iran is secretly trying to build an atomic bomb but Teheran insists its nuclear drive is entirely peaceful and aimed at generating electricity for its growing population.

Foreign ministers of the 22‐member Arab League are meeting at the group’s Cairo headquarters to discuss several issues including reconciliation moves by feuding Palestinian factions. A decision expected on Wednesday by the International Criminal Court on whether to seek the arrest of Sudanese President Omar Al Beshir for alleged war crimes in Darfur is also expected to be discussed.

Saudi Arabia Flays Israel’s Plan to Evict 1,500 Palestinians

Saudi Arabia has condemned the Israeli plan to evict 1,500 Palestinians from Jerusalem’s Al‐ Bustan neighbourhood.

119 The Council of Ministers, chaired by Custodian of the Two Holy Mosques King Abdullah, on Monday, said the continuing construction of Jewish settlements by Israel in the occupied territories represented a major obstacle to realising peace in the Middle East. The Cabinet statement comes after Jerusalem municipality served notices to the residents of Al‐Bustan to vacate their homes within 72 hours. The municipality claimed the houses in the area were built without permits, ignoring the fact that most of them were constructed before 1967. Referring to the international conference in Cairo to mobilise funds for the reconstruction of Gaza, the Cabinet said, “Saudi Arabia hopes the conference will realise its objectives.”

Editorial: Pledging aid for Gaza was the easiest bit The $4.48 billion that donors promised in Sharm El‐Sheikh on Monday for the reconstruction of Gaza will have to penetrate a labyrinth of barriers and conditions, wrote in its editorial yesterday. Excerpts: The money will be given to the Palestinian Authority, not Hamas, even though the PA’s writ does not run in Gaza. The aid will pass through crossings currently closed by Israel. It will be distributed in such a manner as to avoid ending up in the hands of its governors. But how? This is like trying to spoon a thin gruel into a dying man, without letting it touch any part of his throat.

Pak CG meets prisoners Pakistan Consul General Zaigham Uddin Azam yesterday interacted with his country’s prisoners at Breman Jail and advised them to undergo the confinement peacefully.

“Do not repeat such crimes in the Kingdom or in Pakistan,” he told them. Azam, who was accompanied by his welfare consul, assured them that he would take up their cases with the local authorities so that they can be release on the completion of their term of imprisonment.

Chaudhary named Pak investment counselor in Kingdom The Pakistan government has appointed Khalid M. Chaudhary, a Riyadh‐based businessman and social worker, as investment counselor for Saudi Arabia.

KUWAIT

120 Political Desk

Kuwaiti MPs file new request to quiz PM

Three Islamist MPs on Monday filed a request to quiz the Kuwaiti prime minister over his performance, in a move expected to further strain relations between parliament and the government.

Members of the Islamic Constitutional Movement, the political wing of the Muslim Brotherhood, accused Prime Minister Shaikh Nasser Mohammad Al Ahmad Al Sabah of mismanagement, breach of the constitution and failure to adopt a prudent economic policy. On Sunday, Islamist MP Faisal Al Muslim also filed a motion to question Shaikh Nasser on claims of misuse of public funds by the staff of his office.

It is the first time any Kuwaiti prime minister has faced two separate interrogation motions and the moves could trigger a new political crisis and a possible dissolution of parliament.

MPs remain split over bills to rescue Kuwait economy MPs pushing for the approval of the loans purchase bill are allegedly exerting tremendous efforts to convince their colleagues to support the proposal, while the advocates of the economic rescue draft bill are trying to find a common ground with the pro‐loans purchase bill MPs, reliable sources from the Parliament told Al‐Shahid daily.

Social Desk

Transparency Society holds discussion The Kuwait Transparency Society hosted MPs Khaled Al‐Sultan and Marzouk Al‐Ghanim at its office in Yarmouk to take part in a discussion that focused on the government bailout plan. Dr Amani Bou Resly also attended to provide his viewpoint on the roots of the crisis and the possible treatments. "We are in the middle of a crisis whose bottom is not known yet," said Al‐ Sultan, describing the effects of the global financial crisis which the country started to feel since the last quarter of 2008.

121 The economic downturn greatly affected large investment companies and banks. The Kuwaiti government arranged a controversial plan presented to the parliament at the end of January which aimed to cover debts of banks and investment companies. But MPs opposed the plan and said it would not stabilize the financial system and gave the Central Bank too much authority to spend public money.

Government spokesmen warned that if the plan wasn't implemented, the whole financial circle of the country would be negatively affected. By the time the government insisted the plan was the best solution to help the country's economy, both MPs, supported by another 14 members of parliament, opposed the opinion and said that the plan cannot protect the financial system in the country.

New arrivals face obstacles Domestic workers are not included in the Kuwaiti Labor Law and the Ministry of Social Affairs and Labor is not effectively organizing their work relations or affairs in general. Domestic workers are living in Kuwait based on Article 20 of the Residency Law for Foreigners, and a special committee consisting of different ministries, including the Ministry of Interior, Ministry of Social Affair and Labor and other ministries concerns itself with the domestic labor issue.

Some Members of Parliament proposed changes be made to the law after a number of problems occurred. Both laborers and sponsors are complaining about many problems with the recruiting agencies. This led MPs to come up with certain suggestions for the government to improve the situation; however, they have not been approved yet. Some suggested founding a shareholding company which would be responsible for maids in Kuwait instead of the 450 maid recruiting offices. This project has yet to be realized.

Blair opens consultancy, signs Kuwait Former British Prime Minister Tony Blair has turned international consultant and has already gained a seven‐figure deal, sources say.

Tony Blair Associates has signed the government of Kuwait as its first client in a lucrative deal to provide ongoing advice from the former prime minister, unnamed sources told Saturday's Daily Telegraph. Blair is advising the monarchy of the oil‐rich state on "good governance," a spokesman told the newspaper. Tony Blair Associates reportedly was established this month

122 after Blair secured the approval of the British Advisory Committee on Business Appointments and is operating from a suite of offices in Grosvenor Square, central London.

The Telegraph said Blair may face questions from critics in the Middle East who contend his already packed schedule of lectures, consultant jobs and charity efforts are affecting his effectiveness in his role as a peace envoy to the region.

Expert hits out at lies - ‘Kuwait was always sovereign state’ Documented evidence gathered by researchers and historians regarding Kuwait’s sovereignty are enough to puncture lies by enemies against the country, reports Al‐Dar daily quoting Dean of the College of Arts at Kuwait University (KU) Professor Maymouna Al‐Khalifa Al‐Sabah.

Maymouna made the declaration during a seminar entitled “Terminals of Kuwait’s History” organized by Gulf Studies Center at the American University of Kuwait recently. She said there are documents, books and evidences, confirming Kuwait’s existence since 1613 AD. She explained the first settlement took place with the construction of a fortress with 20 fences, which was named ‘Al‐Kout’.

According to history, Mubarak the Great refused the proposed construction of a rail line along Baghdad‐Berlin‐Kuwait in 1899, which is an indication that Kuwait was and will always be a sovereign state,” KU academician argued.

IR Desk

Polish minister woos Kuwaiti investors Although there are still 1,189 days to go before the UEFA 2012 Cup, Polish people are already emotionally prepared for the event, but on a physical level, "Poland still has more to be done." This was the view expressed by Miroslaw Drezenwiecki, Poland's Minister of Sports and Tourism, who was speaking during his visit to Kuwait, part of a three‐country tour of the Middle East region.

123 Kuwait gives $200m for Gaza reconstruction Kuwait is donating $200 million dollars to the Palestinian authority as its contribution for rebuilding Gaza, a senior official announced on Monday. Kuwait’s Deputy Prime Minister and Foreign Minister Sheikh Dr Mohammad Sabah Al‐Salem Al‐Sabah, addressing the donors conference for the reconstruction of Gaza, said Kuwait has earmarked $200 million, to be secured for the Palestinian authority, for the next five years.

‘Kuwait-Iraq border’ issue has been settled, says FM Deputy Prime Minister and Foreign Minister Sheikh Dr Mohammad Sabah Al‐Salem Al‐Sabah returned home on Friday wrapping up a diplomatic whirlwind tour aimed at delivering messages from His Highness the Amir to the Arab heads of state, concerning means of clearing strains in Arab‐Arab ties.

In remarks he made upon arrival at Kuwait International Airport, Sheikh Mohammad re‐ confirmed that contents of the Amir’s messages that he handed over and conveyed to the Arab leaders dealt with implementation of the resolutions of the January Arab economic summit and rallying support for Kuwait’s reconciliation efforts.

.

Sheikh Mohammad indicated that his mission has not been completed yet indicating that further efforts are needed to ensure success of the upcoming Arab summit, due in Doha, Qatar, late March.

On his visit to Iraq, Sheikh Mohammad said he was assured by the Iraqi leaders about Baghdad’s keenness on bolstering regional stability. “This is a significant and warranted matter for Iraq that has begun a new phase with the recently‐held elections of the governorates’ councils that practically affirmed the new approach for an open and democratic Iraq with multi‐ political trends, as well as supporter of regional stability and peace.” He confirmed that the Kuwaiti‐Iraqi committee would hold a meeting in March to thrashing out pending issues concerning the two neighbors.

He expressed satisfaction at the outcome of the inter‐Palestinian reconciliation, hoping “to remove that big bomb placed on the path of the Arab reconciliation and pave way for broader reconciliation in the Arab fold.” On reports that the US Secretary of State Hillary Clinton might visit Kuwait as part of a forecast regional tour, the minister said he could not comment on this topic.

124 In Lebanon, Dr Mohammad Sabah handed over on Thursday a written message from Sheikh Sabah to Lebanese President Michel Suleiman, contents of which deal with follow‐up on implementation of resolutions of the Arab economic summit hosted by Kuwait last January.

Economic Desk

Kuwait’s Al-Kharafi Group to develop Saudi economic city Kuwait’s Al‐Kharafi Group said Saturday winning a bid to develop Prince Abdulaziz bin Musa’ed Economic City in city of Ha’el in Saudi Arabia would be an added value to its investment business. Luai Jassem Al‐Kharafi, Group’s Vice‐Chairman, told KUNA the group signed a number of agreements with the Saudi authorities last Tuesday to develop the economic city. The USD‐ eight‐billion economic city, stretching over 156 million square meters, will be developed by a union of investors headed by Kuwait’s Al‐Mal Investment Company, Al‐Kharafi Group’s investment arm, he said. The development of the city will be supervised by the Saudi Public Authority for Investment.

Kuwait oil exports to Japan surge 26.6 pc Kuwait’s crude oil exports to Japan rose 26.6 percent in January from a year earlier to 10.31 million barrels, or 333,000 barrels per day, up for the second straight month, the concerned government agency said Friday.

Japan is Kuwait’s largest oil buyer, taking around 20 percent of its shipments annually.

Kuwait supplied 8.8 percent of the nation’s crude oil in January, compared with 5.6 percent in the same month of last year and 9.5 percent in December, the Japanese Natural Resources and Energy Agency, a unit of the Ministry of Economy, Trade, and Industry, said in a preliminary report.

BAHRAIN

Social Desk

eGOVERNMENT AUTHORITY OF BAHRAIN JOINS HANDS WITH GULF MARCOM AND HILL & KNOWLTON

125 The eGovernment Authority of Bahrain (eGA) has signed a marketing agreement with Gulf Marcom, the leading regional advertising and marketing group. The agreement was signed in Bahrain by Mohammed Al Qaed, CEO of the eGA, and Khamis Al Muqla, Chairman of Gulf Marcom and Chairman, Hill & Knowlton Middle East.

Protesters burn Bahrain police car

Bahrain's Interior Ministry says an unmarked police car has been attacked and burned by dozens of people wielding fire bombs.There were no injuries, however, in Friday night's attack, the statement said.

Also on Friday police fired tear gas at worshippers attempting to pray outside a mosque linked with one of the detained leaders.

Human Trafficking/ Rights Desk

Bahrain backs trafficking war

A CALL to arms for a long war against human trafficking went out from Bahrain yesterday. It is a scourge which will take determination and perseverance to stamp out, Bahrain's First Lady told an international conference.

Human trafficking is an affront to human dignity that must be stopped, said Her Highness Shaikha Sabeeka bint Ibrahim Al Khalifa, wife of His Majesty King Hamad and chairwoman of the Supreme Council for Women. A CALL to arms for a long war against human trafficking went out from Bahrain yesterday. It is a scourge which will take determination and perseverance to stamp out, Bahrain's First Lady told an international conference.

Bahrain monitors medicine alert

BAHRAINI health authorities are monitoring developments in the UK, where experts have cautioned against children aged under 12 taking certain over-the-counter cough and cold medicines. The warning was issued by the UK's Medicines and Healthcare Products Regulatory Agency (MHRA), but Bahraini officials said they were not taking action yet.

Law to protect maids vowed

HOUSEMAIDS are to get legal protection, to stamp out the trade in human misery, including forced prostitution. A law will regulate the working hours and living conditions of domestic staff such as housemaids, drivers, childminders and cooks, said Bahrain National Committee to Combat Human Trafficking head Shaikh Abdulaziz Mubarak Al Khalifa.

126

Bahraini Women Seek Equal Nationality Rights A signature campaign will soon be launched in Bahrain demanding equal nationality rights for Bahraini women.

An announcement in this respect was made by the Bahrain’s Women Union at a seminar held on Saturday to discuss the plight of around 2,000 stateless children of Bahraini women married to foreigners. Under the existing law, a child born to a Bahraini father is considered a national right from day one of his birth. In case the wife is a foreigner, she could become a national after five years of marriage. However, the same rights are denied to Bahraini women in case they marry a foreigner.

“The petition should be signed by all those who suffer because of the outdated law that goes against the Convention of Elimination equality between genders,” President of the Union, Maraim Al Ruwai, told the seminar. of Discriminations Against Women (CEDAW) and the Bahraini constitution that stresses.

IR Desk

Iran seeks closer ties with Bahrain Iran's president says the country wants closer ties with Bahrain during a visit by Bahrain's foreign minister seen as an effort to patch up shaky relations.

The Friday report by Iran's official news agency quotes Mahmoud Ahmadinejad as saying Iran respects the dignity of Bahrain and supports its progress. Bahrain's foreign minister was reported as saying relations with Iran are very important.

Spat erupts with Iran over cleric's boast

A huge spat has broken out between the Islamic Republic of Iran and the tiny Persian Gulf kingdom of Bahrain over comments made by an Iranian cleric earlier this month claiming dominion over the island nation.

Bahrain made it crystal clear that it did not tolerate any statements undermining its sovereignty. In the last few days, Bahrain suspended talks over the importation of natural gas from the Islamic Republic and barred Iranian ships from reaching its shores, according to media reports.

127 Meanwhile, Iranians backtracked by reaffirming their full recognition of Bahraini sovereignty. But the recent row between Manama and Tehran is deeply rooted. Bahrain is a predominantly Muslim Shiite nation ruled by a minority of Sunni Muslims. This small Arab state, which relies on tourism from more conservative neighboring countries, regularly accuses Iranians of stirring up opposition in the ranks of Bahraini Shiites.

Government opposition figures in Bahrain, home to the U.S. Navy's 5th Fleet, regularly assert that authorities have been clamping down on the political rights of Shiites in the country. Sectarian violence is repeatedly reported in Bahrain.

The German news agency Deutsche Presse‐Agentur reported Friday that Iranian shipping vessels had been asked to leave Bahraini territorial waters. A Bahraini official who spoke on condition of anonymity told DPA that “no Iranian vessel will be allowed in until further notice.” This comes after Bahrain decided to halt negotiations to import 1 billion cubic feet of gas per day from Iran through a new pipeline.

Bahraini newspaper Al Ayam wrote recently that, "the decision … shows Bahrain's vexation with the [Iranian] claims regarding Bahrain that are affecting bilateral relations and cooperation in various areas, mainly energy and economy.”

Iranian officials tried to underplay earlier comments in apparent attempts to save the lucrative gas deal with Bahrain. Iran’s envoy to Bahrain, Hussein Amir Abdullahyan, asserted on Friday that Iran was looking to strengthen relations with its neighbors, according to the Iranian Press TV website. Abdullahyan stressed that Bahrain is an independent country and that is the official stand of the Islamic Republic, the website said.

Bahrain may have no choice but to eventually make amends. The reason: It's got no natural gas, and its gas‐rich Arab neighbors have already committed their supplies to other countries. Bahrain needs Iran to keep its industries running.

Bahrain to host first GCC Games

128 BAHRAIN will host the first-ever GCC Games in 2011, it was announced yesterday after the 23rd GCC Sports Ministers' congress held in Muscat.

The proposal was presented by Supreme Council for Youth and Sports vice‐president and Bahrain Olympic Committee (BOC) president Shaikh Isa bin Rashid Al Khalifa who headed the Bahrain delegation.

Economic Desk

Bahrain money supply growth slows for 4th month

Bahraini money supply growth fell for a fourth month running to 16.4 percent in January, its slowest annual rise in almost two years, in the latest signal that inflationary pressures are easing in the Gulf region.

M3, the broadest measure of money circulating the Bahraini economy, was 7.79 billion dinars ($20.67 billion) at the end of January compared with 6.69 billion dinars a year earlier, the central bank said in a monthly report on its website.

Annual growth in money supply fell from 21 percent in December and was the slowest rise since March 2007.

As in other states in the world's biggest oil-exporting region, Bahrain's money supply surged as oil prices rallied to a peak last July above $147 a barrel. oil prices have since fallen more than $100 a barrel and rapid economic growth in the Gulf has come to an end as the region suffers the fallout of a global financial crisis that has sent much of the industrialised world into recession.

Bahrain central bank loosens bank lending curbs

Bahrain's central bank cut the amount of reserves banks are required to hold on Tuesday, citing a drop in price pressures, in the latest move in the oil-exporting Gulf region to help unlock credit markets.

States across the world's biggest oil exporting region, including Saudi Arabia, have slashed interest rates, set up emergency funding facilities for banks and easing banks' reserve requirements to help the financial sector weather the crisis. Bahrain's central bank said on Tuesday it had lowered the reserve requirement for banks to 5 percent from 7 percent.

Al Salam Bank ­ Bahrain is the Golden Sponsor For 9th GCC Banking Conference Al Salam Bank-Bahrain has recently announced its golden sponsorship of the upcoming 9th GCC Banking "A New Era in International Banking Practices:

129 Implications for the GCC Markets." The conference is organized by the Central Bank of Bahrain in cooperation with Gulf Cooperation Council (GCC) Secretariat General and will be held at the Ritz Carlton Hotel & Spa in the Kingdom of Bahrain from 24-25 March 2009 under the patronage of His Highness the Prime Minister Shaikh Khalifa bin Salman Al Khalifa.

The conference topics will focus on the GCC legislative regulatory Industry and provide participants the opportunity to discuss with regulators and legislators the most significant issues and its impact on regional markets. On this occasion, commented the Director and Chief Executive Officer of Al Salam Bank-Bahrain, Mr. Yousif Taqi: "We are proud to support this important conference for involving financial institutions in the process of formulating and decision-making especially at this critical stage the global financial markets in general and in the Gulf particular are facing. We are honored to be partners with the Central Bank of Bahrain and the Gulf Cooperation Council Secretariat General in the policy-shaping landmark of the conference.”

$30 Billion in Projects Underway in Bahrain More than $30 billion worth of major projects in property, infrastructure and other industries are underway, in spite of the global financial crisis, according to the latest edition of Bahrain “Who’s Who Directory.”

A spate of investor-friendly reforms and a privatisation drive have spurred Kingdom of Bahrain’s growth as a preferred investment destination within the Gulf region, according to a comprehensive report in the directory titled “Bahrain enters a vibrant new era of growth.”

OMAN

Social Desk

Oman Joins Fight Against Fraud

On Mar. 4, 2009, Oman's accession to the Hague Agreement Concerning the International Registration of Industrial Designs will be complete.

The agreement will formally enter into force in the country, marking this as just one of a number of recent moves taken to improve Oman's intellectual property protection.

In May 2008, Sultani Decree 67 brought into force the Law on Industrial Property rights, which accommodates industrial designs, trademarks, patents and geographical indications all under one law (previously, they were governed under separate decrees). Additionally, new ministerial decisions in December 2008 brought into force regulations to this law. What, if any, long‐term effect these measures, and particular accession to the Hague Agreement, will have on the country's general economic environment is a question worth asking, especially when one considers that Oman is the first in the GCC to accede to this agreement.

130

IR Desk

Confident Pakistan off to Oman looking for Davis Cup triumph

Pakistan will be banking heavily on their ‘Davis Cup experience’ when they begin the bid to regain a place in the Asia Oceania Group‐I by beating Oman in an away tie later this week, writes Khalid Hussain

French president visits Oman

French President Nicolas Sarkozy is welcomed by Oman’s Sultan Qaboos at the Alam Palace in Oman’s capital Muscat on Feb. 10, when Sarkozy started a two‐day official visit to Oman, Bahrain and Kuwait.

Omani Award Conferred on Lebanese President

His Majesty Sultan Qaboos bin Said conferred the Oman Military Order of the First Class on Lebanese President Michel Suleiman, who is currently on a two‐day visit to the Sultanate.

The Lebanese president was honoured at a special banquet hosted at Al Alam Al Amer Palace in Muscat. During his visit, Suleiman also met members of Oman‐Lebanon Business Council along with ministers accompanying him at Al Alam Palace. They discussed trade and economic relations between the two countries. The council hopes to enhance economic cooperation between the two countries to trigger growth in investment and bilateral trade.

Economic Desk

Middle East, North Africa Destinations to See Decrease in Demand for 2009

According to end‐of‐year results released by MKG Hospitality’s market monitor database, Hotel Compset, Oman was the most improved destination throughout the Middle East & North Africa (MENA) region in 2008, recording 34 percent Revenue per Available Room (RevPAR) increase. Oman’s performance included growth of nearly 40 percent in Average Daily Rate. Jordan had 26

131 percent growth in RevPAR, driven by a 17 percent increase in ADR and an 8.4 percent rise in Occupancy Rate (OR). Egypt, Qatar, Bahrain, Algeria and Tunisia also all recorded good results.

Oman pursuing big port despite downturn

Reuters cited Mr Ahmed Mekki national economy minister of Oman as saying that Oman will build OMR 692 million ports at Duqm as part of its economic development plan despite a global downturn and a projected drop in oil revenue. The government expects reasonable growth for 2009 despite the financial crunch in part because it aims to pursue all the major state led development projects it has launched, using surplus oil revenue or state reserves, if needed.

Oman to issue solar power tender

Oman is expected to issue a request for proposals to consultants for the country's first solar power plant project by the middle of March.

India's Bharat Oman defers share offer as mkts sink

Bharat Oman Refineries, a unit of state‐run Bharat Petroleum Corp (BPCL.BO), said on Tuesday it has put off its plan to raise funds through an initial public offering of shares due to market volatility.

It had filed with markets regulator Securities and Exchange Board of India in March last year to raise funds for its refinery in the central state of Madhya Pradesh, expected to commence commercial operations around January 2010. But the company said that after consulting its merchant bankers it decided at a Feb. 26 board meeting to suspend the plans for an equity offering "taking into consideration the current volatile markets." Bharat Oman, a joint venture between Bharat Petroleum and Oman Oil Company, which has a minority stake, is setting up a new refinery with a crude oil processing capacity of 6 million tonnes a year at a cost of 104 billion rupees ($2 billion), to be funded through a mix of debt and equity.

Vale keen to invest in mining, gas exploration in Oman

Global mining giant Vale, which is developing a world‐scale iron ore pelletising plant at Sohar at a cost of $1.356 billion, is actively exploring investment opportunities in mining, gas exploration and power generation in the Sultanate, the head of the Brazil‐based conglomerate said here yesterday. Addressing a press conference after attending the cornerstone‐laying ceremony for

132 the Sohar project, Roger Agnelli, President and CEO, said Vale was already in discussion with Oman's authorities, as well as partners here and in Brazil, to grow its portfolio of business investments in the Sultanate. .

OITE bags gold award in Oman Web Awards 2008

Oman International Trade and Exhibitions (OITE), the country's premier events management company announced that its official website won the Gold Award for media, media services and events management category in the prestigious Oman Web Awards 2008 held recently at Al Bustan Palace.

QATAR

Social Desk

Qatar to set internet policy

Qatar has announced it is in the process of developing a policy for governing internet services and is set to launch an online consultation seeking the public's opinion on how internet services within Qatar should be kept safe and secure, The Peninsula has reported. The policy covers filtering of internet content and how filtering errors will be rectified; what type of content can be hosted on servers; what type of data will need to be retained for law enforcement purposes; user identification and anonymity; public Internet access and hotspot security; ISP resiliency and protection; handling of malicious activity and national incident management.

Qatar to introduce premarital medical tests

Qatar's Ministry of Health is planning to launch premarital medical tests that will screen for hereditary diseases, infectious diseases such as AIDS and hepatitis, and chronic diseases. The tests, which will apply to nationals and residents getting married in the country, will be launched on a voluntary basis before being made mandatory.

133 Qatar Airways names jet “Gaza”

The second jet on Qatar Airways’ new Houston to Doha direct route will bear the name “Gaza” as a show of solidarity with the people in that war‐torn area.

The Boeing 777‐200 long range aircraft is the first of the airline’s 67 planes to be named for anything outside of Qatar’s borders. Qatar Airways customarily names each of its aircraft after place names within the State of Qatar,” Chief Executive Officer Akbar Al Baker said at a dedication ceremony last week in the country’s capital city, Doha. “But we have made an exception in this case.”

Parliament Speaker meets Qatar Crown Prince

Parliament Speaker Köksal Toptan yesterday met Qatar's Crown Prince Tamim bin Hamad Al Thani.

Al Thani issued an order to ease visa regulations for Turkish businessmen in line with Toptan’s request. He also promised to look into the situation of Turkish nationals Musa Nemez and Münif Temizkan, who were convicted in Qatar of selling outdated meat in the supermarkets they were employed.

IR Desk

U.S. Files Charges against enemy combatant

The government unsealed criminal terrorism charges against Ali al‐Marri, a Qatari man long held as an enemy combatant, but the bare‐bones indictment gave little hint of how prosecutors intend to build their case.

The Obama administration also asked the U.S. Supreme Court to dismiss Mr. Marri's pending case challenging the authority of the president to indefinitely hold without charge terrorism suspects arrested on American soil. U.S. officials have said they believe Mr. Marri was sent to the U.S. by al Qaeda to help carry out follow‐up attacks to 9/11. He was held without charge since 2003 in a Navy brig, drawing criticism from civil‐liberties groups.

134 Qatari Emir to visit Chad for talks on tension with Sudan

The Emir of Qatar, Sheikh Hamad bin Khalifa Al‐Thani, is expected to arrive tomorrow in a one‐ day visit to Ndjamena for talks with the Chadian President Deby on the shaky relations with Sudan and Darfur peace process.

Al‐Thani whose country brokered a goodwill agreement between Sudanese government and the rebel Justice and Equality Movement (JEM) announced last Saturday from Khartoum he would meet President Deby to discuss the chronic tension between the two neighboring countries. The Chadian information minister and government spokesperson confirmed the visit saying that his country welcomes efforts to ease the current tension and improve the relations with Sudan.

Parliament Speaker visits Qatar, Yemen

Parliament Speaker Köksal Toptan yesterday traveled to Qatar for an official visit. He will meet Qatar's Amir Hamad bin Khalifa Al‐Thani and Prime Minister Hamad bin Jasim bin Jabir al‐Thani today.

Qatar's parliament speaker, Mohammed bin Mubarak al Khuleifi, will host a luncheon in honor of Toptan on Tuesday. Toptan and an accompanying delegation will proceed to Yemen on Wednesday

Qatar releases 3 Saudi boats

The Qatari Coast Guard released three Saudi boats and 10 sailors who were arrested last week for illegally entering Qatari waters.

The three boats were released after their owners paid fines to the Qatari authorities. Six other Saudi boats and 30 sailors are still in Qatari custody.

Qatar Singapore sign MOUs

HH the Deputy Emir and Heir Apparent Sheikh Tamim bin Hamad al‐Thani and Singapore’s Deputy Prime Minister and Minister for Home Affairs Wong Kan Seng witness the signing of

135 three memorandums of understanding between the governments of Qatar and Singapore and the minutes of the third meeting of the Joint Committee yesterday.

Oil and Gas

Indians to Set Up Petrochemical Complex in Qatar

Indian GAIL and Reliance Industries Limited companies are due to set up a gas‐burning Petrochemical complex in Qatar.

The companies have negotiated about establishing the complex with Qatar Petroleum. Besides, there are some media reports that Petronet LNG Limited is discussing import of LNG to expand capacity in Dahej and for planned Kochi terminal with RasGas Qatar.

Pakistan considering Qatari LNG over Iranian gas

Pakistan may decide to import LNG from Qatar and not build the 2,700‐km Iran‐Pakistan‐India (IPI) natural gas pipeline if Pakistan and Iran fail to reach an agreement on gas pricing under the IPI project. The two countries have been negotiating the price for months (OGJ Online, Dec. 17, 2008).

Pakistan has asked Iran to link the gas price to 70% of the price of crude oil against Iran's demand of 78%. According to Pakistan's ministry of petroleum, LNG imports from Qatar may ultimately be cheaper, as the construction and maintenance of the $7.4 billion pipeline would not be required. The petroleum ministry said a presentation to the prime minister last month informed him that there was little difference between the price of Qatar's LNG and proposed gas imports from Iran under the Iranian gas pricing formula.

Economic Desk Qatar must step up efforts to launch single regulator

Qatar should speed up efforts to introduce a single financial regulatory regime to bolster its fledgling capital markets, according to experts.

The country should first develop a benchmark yield curve for rightly pricing debt and other financial instruments, a move that could greatly help the private sector, especially at this time of financial crisis, they said. Developing such a benchmark yield curve would also help the country to effective develop a corporate debt market, said Standard Chartered Senior Economist

136 Philippe Dauba‐Pantanacce. Finding that the government has started taking initiatives in reforming its capital market, he said the move by the Qatar Central Bank to issue certificate of deposits to banks was a positive step. He said not only it could suck out excess liquidity in the financial system, seen as a major reason for Qatar?s inflation, which is the highest in the GCC region, but also pointed towards the appetite for more instruments in the market.

Atlanta Companies Sought for Qatar Trade Conference

The World Trade Center Atlanta is recruiting local companies to attend a May trade conference in the Persian Gulf country of Qatar.

The Futurallia Conference will be held May 10‐12. It will feature a half‐day seminar on how to do business in the Persian Gulf followed by face‐to‐face meetings with up to a dozen business prospects. The conference, aimed at small‐to medium‐sized companies, provides a business matchmaking service, said Lilia Postolachi, World Trade Center Atlanta’s membership and international services director.

Business and Politics in Muslim World

India

Sadia Khanum

28th February 2009 to 6th March 2009

Presentation date: 11th March 2009

Political front:

• Lok Sabha elections from April 16 to May 13

137 • Lok Sabha polls: Partnerships key to 5‐day Test • We'll force netas to mend ways: Voters • BJP announces Lok Sabha poll alliance with Ajit Singh‐led RLD • Sonia insulted Telangana people: BJP • Advani is our alliance leader: Nitish • Congress, DMK ties perfect, says Azad • BJP‐JDU alliance in Jharkhand undecided • Cong scouts for more regional allies • BJP‐Sena ties at breaking point • BJP eyes ‘third front’ parties as post‐poll partners • Jharkhand Muslims to bargain for votes • Pawar attacks “communal politics” of Narendra Modi

Mumbai Attacks and Aftermath:

• ‘Pak should take stern action against terror’ • Pakistan yet to provide missing pieces of Mumbai puzzle

Domestic Situation:

• Godhra riots’ missing to be declared dead • IM suspect spills terror beans • Demand for separate state in Tripura • Jamiat resents arrest of Muslims as terrorists

Economic Front:

• Tainted Satyam's assets valued at Rs 4,000 crore • Recession may pull down India's GDP to 3%: Morgan Stanley • India lifts import ban on Chinese toys • Economy to bounce back, 7% growth seen in late FY'10: PC • Exports fall 13% in Feb

Geo‐strategic developments:

• ‘Navy to have full responsibility for coastal security’ • New BrahMos test successful

Kashmir:

Social front:

• Slumdog money being used to help Mumbai slum children: Boyle • Vijay Mallya buys Gandhi's items for $1.8m • Urdu litterateur visualises it's revival

138 Foreign Relations:

• Pakistan‐based terror a grave threat to entire world: India • In Pakistan, India is emerging as prime suspect • Lahore strike may spell total isolation for Pak • Pranab calls for political solution

Political front:

Lok Sabha elections from April 16 to May 13

The general elections to the 15th Lok Sabha will be held in five phases, on April 16, 23 and 30, and May 7 and 13. A total of 714 million voters an increase of 43 million over the 2004 elections will elect 543 members. Chief Election Commissioner (CEC) N. Gopalaswami, along with Election Commissioners Navin Chawla and S.Y. Quraishi, told a press conference here on Monday that counting of votes was scheduled for May 16 and the results would be announced the same day. The entire poll process would be completed by May 28. With the announcement of the poll dates, the model code of conduct comes into force with immediate effect. The delimitation process, undertaken in all States except Jammu and Kashmir, Arunachal Pradesh, Assam, Jharkhand, Manipur and Nagaland, has resulted in 499 constituencies being redrawn. For the first time, photo electoral rolls will be used in 522 out of the 543 constituencies. The Assembly elections in Andhra Pradesh, Orissa and Sikkim will be held simultaneously with the Lok Sabha poll. Polling will be held in 124 Lok Sabha constituencies on April 16; in 141 constituencies (including one in Manipur which will go to the polls on April 22) on April 23; in 107 constituencies on April 30; in 85 constituencies on May 7 and in 86 constituencies on May 13.While Jammu and Kashmir and Uttar Pradesh will have a five-day polling, it will be a four- day event in Bihar and a three-day exercise in Maharashtra and West Bengal. The election will be a two-day affair in Andhra Pradesh, Assam, Jharkhand, Karnataka, Madhya Pradesh, Manipur, Orissa and Punjab. The remaining 15 States and seven Union Territories will witness a one-day poll. The notification for the first phase will be issued on March 23. The polling in Kerala is on April 16; in Andhra Pradesh it will be on April 16 and 23; in Karnataka on April 23 and 30. Tamil Nadu will go to the polls on May 13.

139

The CEC said the Commission would put in place about 11 lakh electronic voting machines for the electoral exercise in 8.28 lakh polling stations. Around 40 lakh civil staff members and 21 lakh security personnel would be deployed. Mr. Gopalaswami said: “The possible cross‐border influences that could affect the peaceful conduct of elections in the constituencies located on either side of inter‐State boundaries have been mapped and this aspect has also been factored in, to the extent possible, while deciding on the phasing and sequencing options.” The model code “will be applicable to all political parties and to the Union and State and Union Territory governments.” He called upon them and candidates to strictly adhere to it. It was mandatory for all candidates to file, along with their nominations, two affidavits with information on their criminal antecedents, if any; assets (including the movable and immovable properties of the candidate, spouse and dependents), their liabilities and educational qualifications. Non‐filing of the affidavits would result in the rejection of the nominations by the Returning Officer. Mr. Gopalaswami said registration of new parties would remain suspended till the completion of the election process.

Lok Sabha polls: Partnerships key to 5‐day Test

The dance of democracy has begun. The Election Commission on Monday called the dates for the 15th Lok Sabha election, setting the stage for a month‐long gruelling battle among three

140 main contending blocs in five phases across the country. The five‐day test will be spread between April 16 and May 13 and climax on May 16 when the ballots will be counted to reveal the victor. The afternoon press conference where chief election commissioner N Gopalaswami and two election commissioners, Navin Chawla and S Y Quraishi, unveiled the poll timetable also sparked furious betting on prospects. Will it once again be the Congress‐led UPA? Or will the BJP‐led NDA return to government? Or will it be back to the Front the gathering of motley parties that get bound by the glue of power should neither UPA nor NDA are able to rachet up the requisite numbers, 272 in a House of 543? Already, everyone was talking to everyone to try and cobble together a winning team. Ajit Singh announced on Monday that he would go with BJP in UP, while indications became stronger that it would be a Congress‐Samajwadi tie‐up in that state. Mulayam Singh was expected to meet Sonia Gandhi but the meeting was put off not for any significant political reason. Old warhorse H D Deve Gowda hobbled out on Monday to announce that he was starting a Third Front, comprising Left Front parties, TDP, AIADMK, TRS and Gowda's JD(S). On Sunday, Sharad Pawar came out fishing for partners, while claiming that his NCP had presence in distant Andhra Pradesh and Haryana too. Many are reading this as Pawar's last gambit for the top job. These frantic moves are expected to go on until exactly 75 days later, we get to know the one who will be king. Will it be Manmohan Singh again or will L K Advani pip him to the post? Or will it be a dark horse a Front nominee or Pawar? Or, may be Mayawati? Any of them could take charge of the world's biggest democracy and second fastest‐ growing economy before June 2 the deadline for constituting the new Lok Sabha. For, the battle has begun without any clear favourite. But before that, there will be pulsating action. New friendships will be forged; fresh enmities will break out; sweat and unfortunately blood too will be shed as netas and their armies fan out across the land to campaign. The battle may be ugly at times but, overall, it will also be a reality check for our leaders as they beseech the aam aadmi for votes, minus their customary security surround. The battle will be different this time. As many as 499 of the 543 constituencies will be different because of the latest round of delimitation. Check out the contours of your constituency some parts of it might have disappeared and new parts added. The New Delhi and South Mumbai seats, for instance, are nothing like they used to be. That's not all. This will be first election since the first in 1952 in which a Dalit Mayawati will make a strong bid for the Delhi gaddi. And that too on the basis of her caste identity. For Jagjivan Ram, the last Dalit to have been projected as candidate for the top job in 1977, his caste was more of a handicap than a political plus. This is also the first election that you will have two declared prime ministerial candidates, Manmohan Singh and Advani. And that's not counting many more with known aspirations but who have not made their claims public as yet. Monday's announcement of poll dates will kick off a whirr of activity to complete other pending work from finalizing nominations to seats, fattening war chests in recession‐hit times, finessing poll manifestos that have been in the works for months, to working out the campaign schedule of the star campaigners. UPA partisans feel they have an edge but that's more because of the absence of any discernible hostility and because the NDA campaign has floundered since BJP crashed to an unexpected defeat in Delhi state polls. But as the last election showed, such a perceived “edge” can be illusory. With a month‐and‐a‐half to go

141 before the last vote is cast at 5pm on May 13, and with the consequences of the economic slowdown still to play out fully, things are likely to be unpredictable.

We'll force netas to mend ways: Voters

Containing terrorism, creating job opportunities and checking price rise are the aam admi's three biggest concerns as India prepares to hold an election to elect its new government. The man on the street, however, does not seem to believe that current political leadership is capable of addressing these concerns or is even interested in doing so. But, on a more heartening note, there is a new‐found confidence that the netas will have to mend their ways and that it is pressure from below that will force them to do so. These are some of the findings from two separate surveys done exclusively for TOI in the cities, towns and villages of India to determine what the voter wants and what he thinks of our political class. The first survey, done by IMRB, covering eight of the biggest states and the national capital territory which account for 337 of the 543 Lok Sabha seats threw up the burning issues. While terrorism, employment and inflation topped the charts with 25%, 21% and 15% respectively identifying them as most important, a surprise was that just 3% thought corruption was the most important issue. The second survey, conducted by Synovate across 10 major cities, confirmed the public disgust with netas. A whopping 60% blamed the politicians for the nation's sorry state, 48% said the main factor in the poor quality of our political class is corruption, and 59% felt the primary motive of most politicians is to make money. There is hope, though, in the proportion that believes this will be changed and that we–the voters of this great democracy–can change things for the better. In an earlier era, you might have expected most middle‐class respondents to voice dismay at the state of our politics and despair about the prospects of things ever changing. But now, the survey showed that a majority, 54% to be precise, were convinced that the netas will be left with no choice but to improve. Again, where in the past civil society may have looked primarily at the judiciary or at bodies like the EC to take on unrepentant politicians; today only 28% are depending on our judges or regulatory bodies to tame rampaging leaders. Another 18% hope that enlightened leaders will force others to follow suit, but the largest chunk, 54% again, are clear who the agents of change will be voters who punish non‐performance.

BJP announces Lok Sabha poll alliance with Ajit Singh­led RLD

BJP chose the day when the Election Commission announced the poll dates to declare that it had wrapped up a deal with Jat leader Ajit Singh. While details of seat sharing between the allies has not been announced, RLD is bargaining for seven seats in western UP where Singh's strength lies among Jat voters. According to sources, these are Amroha, Muzaffarnagar, Mathura, Bagpat, Nagina, Hathras and Sitapur. The announcement appeared to be timed to coincide with the announcement of poll dates, and designed, coming a day after Congress stiched up an alliance with Mamata Banerjee in West Bengal, to counter the perception that the BJP does not have many friends apart from the existing NDA partners. Party general secretary and in‐charge of the state Arun Jaitley said BJP and RLD will announce candidates for western UP seats in a couple of

142 days. They were waiting to see who the rival candidates from Congress and Samajwadi Party would be, he added. With RLD joining hands with BJP, the NDA has gained three new allies — Om Prakash Chautala's INLD in Haryana and AGP in Assam, while it lost its ally in West Bengal, Mamata Banerjee's Trinamool Congress, which agreed to a tie‐up with Congress. The alliance with Ajit Singh, along with the tie‐up with Chautala and the decision to retain Vasundhara Raje as the leader of the party in Rajasthan, can boost the BJP's appeal among Jats in the northern region. BSP's recent by‐election defeat in the Bhadohi assembly seat to SP has also lifted spirits for BJP, as it is an indication that Mayawati's magic with the Brahmin‐Dalit combination may not be working as well as it did in the last assembly polls in UP in 2007. That, BJP feels, may bring some of the upper caste voters back to the party's fold, where it traditionally belonged. BJP managed to pick up 14,000 votes, party leaders said. Ajit Singh, at a joint press conference with BJP chief Rajnath Singh and senior party leader L K Advani, claimed that the alliance would bring a change in government at the Centre and in UP, as BJP too looked at the tie‐up as an opportunity to reap electoral benefits in the state where it suffered huge losses in the 2004 polls. "With this addition, we are sure to bring an end to the suffering of the common man under the five‐year‐long UPA rule," Advani said. In the outgoing Lok Sabha, RLD had three seats while BJP had seven MPs from UP. Former BJP vice‐president Kalyan Singh, who had vociferously opposed the alliance with RLD, has quit the party. Welcoming the alliance, Rajnath Singh said, "This occasion is significant. It is a clear sign of the NDA's growing popularity." Rajnath has reason to favour the alliance also because he will be contesting the Ghaziabad Lok Sabha seat, where the RLD's Jat votes could help him.

Sonia insulted Telangana people: BJP

The BJP on Sunday took a dig at UPA chairperson Sonia Gandhi for failing to give reasons for the failure of the Pranab committee on Telangana and expressed dismay at the way she showered praises on chief minister Y S Rajasekhara Reddy, who is being accused of encouraging unabashed corruption. State BJP president Bandaru Dattatreya said the Congress party came to power riding on the Telangana slogan and is trying to hoodwink the people of the region yet again through false assurances. He said the way Sonia praised the chief minister indicated that corruption was very much centralized and the UPA chairperson was in the know‐how of things. Describing the Congress meeting at the Parade Grounds as a 'Congress mela' devoid of a political message, the BJP leader was critical of Sonia's attitude towards the state government saying, "It is sad that she praised YSR without questioning charges of corruption against the chief minister. It is certain that Sonia Gandhi is part of the large scale corruption that is prevailing in the state. She downgraded herself to suit to the chief minister. What a sad day? The high command is showering praises on the low command. It seems as if YSR has become the high command for Congress."

Advani is our alliance leader: Nitish Asserting that the NDA in Bihar had already geared up for the forthcoming Lok Sabha elections in Bihar, chief minister Nitish Kumar said the conjectures over senior BJP leader L K Advani's

143 candidature for the post of prime minister alienating minorities from favouring NDA nominees in the state were nothing but a facade. It is nothing but facade. The NDA government in Bihar is doing all‐possible for the uplift of the all sections of society, particularly the minorities, Kumar told reporters. Advani is leader of the alliance which is to take on the UPA in the coming lok sabha polls, he said,adding both the JD(U) and BJP were fully prepared to face the elections and defeat the UPA. Since we are in election mode, I cannot predict what will happen but it is almost sure that we will be pulling off a spectacular victory over our rivals, Chief Minister said. Kumar said issues relating to the development works the NDA government had delivered, UPA government's insincere and lackadaisical approach towards the development of the state and the Centre ignoring the state to provide required assistance for the victims affected by unprecedented floods in 2007 and 2008 would be highlights of the poll plank to be highlighted by the NDA leaders during electioneering.

Congress, DMK ties perfect, says Azad

Ghulam Nabi Azad, Congress general secretary in-charge of Tamil Nadu, on Monday held discussions with Chief Minister and Dravida Munnetra Kazhagam president M. Karunanidhi and Tamil Nadu Congress Committee (TNCC)’s functionaries as part of efforts to work out a seat- sharing arrangement for the Lok Sabha elections. Emerging from a 50-minute-long meeting with Mr. Karunanidhi at his Gopalapuram residence here, Mr. Azad told reporters that the relationship between the leadership of the Congress-led United Progressive Alliance and that of the DMK was “perfect” and “there is no need for any speculation.” Describing the DMK as a “very strong ally” of the UPA, he said the partnership with the DMK was one of the “most successful alliances.” The coordination between the Congress and the DMK was “total,” which would continue in future too. Noting that the DMK had constituted a committee for the purpose of holding negotiations with other parties for seat sharing, the Congress general secretary said his party too would form one such committee and the two panels would discuss the matter. He appealed to other like-minded parties to join the Congress-DMK alliance in the State. Responding to queries of the reporters on the possibility of DMK giving more seats to the Congress, Dayanidhi Maran, DMK Member of Parliament, who was present during the discussions, responded that every party wanted to contest more seats. “We will sit together and we will negotiate and try to get the best for each other.” He added that there were “spare seats.” Referring to the Election Commission’s decision to hold the polls in the State in May, Kanimozhi, another MP, said there was enough time to prepare for the elections. Pointing out that the DMK-Congress ties were good all through, she expressed the hope that this would continue. K.V. Thangkabalu, TNCC president, D. Sudarssanam, Congress Legislature Party leader, and T.R. Baalu, Union Minister for Shipping, Highways and Road Transport, were present at the meeting between Mr. Azad and Mr. Karunanidhi.

BJP‐JDU alliance in Jharkhand undecided

The Bharatiya Janata Party (BJP) is yet to decide on any seat‐sharing formula with the Janata Dal (United) in Jharkhand, Ms Sushma Swaraj said. Ms Swaraj, an MP and senior leader of the BJP, made the comments during her maiden visit to Ranchi as the BJP’s in‐charge of elections in Jharkhand. The JD‐U is an ally in the NDA led by the BJP. Ms Swaraj also flagged off 11 Vijay

144 Sankalp Raths (chariots) from Ranchi, which will be touring the state to garner support for BJP candidates in Jharkhand. Asked about the prospects of forming a pre‐poll alliance with the JD‐U, Ms Swaraj said: “Our leader Mr Arun Jaitley will soon be finalising the BJP's alliance partners in UP and Bihar.” Commenting on the candidature of Bollywood star Mr Sanjay Dutt on a SP ticket from Lucknow, Ms Swaraj said: “Mr Dutt is not a serious politician.”

Cong scouts for more regional allies

Notwithstanding some heart burning among key allies in UPA, the ruling Congress is on a hunt for new partners while retaining the existing ones in its bid to return to power at the Centre after the Lok Sabha elections. Seeking to keep the fissures from the present UPA constituents like Samajwadi Party and NCP in the back burner, the party’s strategy now revolve around getting new alliance partners like Mr H D Deve Gowda’s JD‐S in Karnataka, Trinamul Congress of Ms Mamata Banerjee in West Bengal and DMDK led by actor‐turned‐politician Mr Vijaykanth in Tamil Nadu.In Tamil Nadu, it has rejected albeit for the time being any drastic change in alliance having kept the open invitation from AIADMK chief Ms Jayalalitha in cold storage. At present the party faces problems in terms of consistent pressure to part way more seats from parties like Samajwadi Party in UP and NCP in Maharashtra. UP sends 80 MPs to Lok Sabha while Maharashtra has 48 seats. However, it is confident of ensuring a smooth working relations with parties like RJD and LJP in Bihar, JMM and RJD in Jharkhand The Congress is also in favour of not allowing much fissures in its existing alliance with the NCP in Maharashtra, RJD and LJP in Bihar, JMM and RJD in Jharkhand along with DMK and PMK in Tamil Nadu. The SP has already announced names for around 60 candidates so far out of 80 in the states, even as the Congress wants to contest in at least 25 seats, while the cold war with NCP has assumed new dimension with former PCC chief Govindrao Adik joining NCP today. AICC general secretary Ghulam Nabi Azad is on a trip to Karnataka to assess the ground realities and forge an alliance with JD‐S. He is also slated to visit Tamil Nadu and is likely to meet key DMK and PMK leaders. The Congress spokesman, Mr Veerappa Moily, did not rule out an alliance with JD‐S saying the “secular electorate needs it”. “An integration is taking place in the UPA ahead of the polls while the NDA is disintegrating,” he claimed on the larger scene. The UPA alliance was stable and the experience of the past five years in running the coalition government is there for all to see, he said. On seat share talks with Trinamul Congress leader Ms Banerjee, he said she was “definitely” not going with the BJP. He, however, did not reveal the progress of talks with her party. The Congress leader did not rule out an alliance with JD‐S saying the “secular electorate needs it”. Mr Moily also claimed that BJD in Orissa and JD‐U in Bihar were not in a “comfortable” position with their alliance with BJP. The party hopes to finalise all the alliances by second week of March.

145 BJP‐Sena ties at breaking point

The BJP‐Shiv Sena verbal dual over the latter’s increasing proximity to the Nationalist Congress Party (NCP) chief, Mr Sharad Pawar, is being interpreted as an ominous sign of a possible parting of ways by the two oldest partners in the NDA ahead of the Lok Sabha polls. The BJP, which has been unable to rope in new allies in its bid to capture power at the Centre, has continued to put up a brave front about its “strong” ties with the Shiv Sena. Party insiders, however, told The Statesman that relations between the two parties had almost reached a breaking point. The first salvo came from none other than the Shiv Sena chief, Mr Bal Thackeray, last week when he took exception to the senior BJP Maharashtra leader, Mr Gopinath Munde, advising the Sena against getting closer to the NCP. In an editorial in Saamana, the Sena mouthpiece, Mr Thackeray warned Mr Munde: “The fact of life is that danger comes from within, from our own people. Pramod Mahajan who was the closest BJP leader to me was killed by his own brother.” Mr Thackeray added: “Sitting on a Katta at Shivaji Park, Pawar had heard the speeches made by us when Shiv Sena was founded decades ago.” The BJP leadership is not amused by the Sena chief’s outbursts against Mr Munde. Reliable sources said the Shiv Sena had already asked its leaders and workers to prepare for an electoral fight along with the NCP even as the two parties gave final touches to their understanding for the coming polls. Sources also said the NCP chief had assured the Shiv Sena of supporting their candidate for the chief minister’s post in exchange for their support to him for the PM’s post.A senior BJP national executive member however rubbished these reports and instead claimed that there was a possibility of BJP‐ Shiv Sena and NCP reaching an understanding for the coming Lok Sabha polls. The BJP spokesman, Mr Prakash Javadekar, said NCP’s move to cosy up to the Shiv Sena was nothing but a pressure tactics to get more seats from the Congress for the ensuing polls. But sources said the present arrangement between the BJP and Shiv Sena that numerical superiority would decide which party would occupy the CM’s chair apparently did not go down well with the Sena.

BJP eyes ‘third front’ parties as post-poll partners

The Bharatiya Janata Party has said the so-called “third front,” is a “no front” that can only spell political instability. Janata Dal (Secular) leader H.D. Deve Gowda, preparing to host the launching of this front in Tumkur, has only to look back to see what happened to the polity when he was Prime Minister. BJP spokesperson Ravi Shankar Prasad made it clear that while the “third front” would spell disaster for the country, he would not rule out some help coming to the National Democratic Alliance from some of these parties in the post-poll situation. “The third front is no alternative to the United Progressive Alliance. That alternative is the National Democratic Alliance. The third front is a no front,” Mr. Prasad said. However, he was willing to concede that in the event of the NDA failing to get a majority on its own, “some of the parties in the third front would come towards us, provided we are ahead of the UPA in numbers.” While keeping up the stance of political correctness and refusing to name parties, Mr. Prasad threw enough hints to suggest that the Telugu Desam Party, which supported the NDA in 1999, and the All-India Dravida Munnetra Kazhagam, which “shares the BJP’s ideology on most issues,” could

146 come the NDA’s way. Several weeks earlier, BJP president Rajnath Singh also hinted that mandate 2009 might not be clear and “post poll alliances” might have to be made. Senior party leaders are hopeful that the three new alliances the BJP has made Asom Gana Parishad in Assam, the Indian National Lok Dal in Haryana and the Rashtriya Lok Dal in Uttar Pradesh could together take up the NDA tally by about 20 Lok Sabha seats, with the BJP gaining 10 and the three allies totalling 10 to 12 seats. But even these may not help the NDA cross the magic mark of 273 seats.

Jharkhand Muslims to bargain for votes Imarat Shariat, one of the oldest and most influencial socio‐religious Muslim organisations in Jharkhand, has been keeping a close watch on political parties in the run up to the Lok Sabha elections. In fact, the organisation is of the view that members of the community should vote for the party which gives tickets to Muslim candidates. "It is premature to say that Muslims will vote against the UPA. Unless the matter of tickets is decided we cannot declare our stand," said Imarat Shariat general secretary AR Qasim. Expressing similar views, state president of Anjuman Islamia Haji Nessar said the organisation was taking the parliamentary elections seriously given that the community's voters have played a major role in deciding the fate of political parties during elections. "Political parties have always cheated Muslims after using the community as vote banks. This time our demand is simple. The party which gives tickets to Muslim candidates will get the community's support," he said. "It is wrong to say that the Muslims will boycott the NDA and support the UPA or vice versa. Unless people from our own community are elected to the highest panchayat (Parliament), chances of improving the community's lot are bleak," Nessar said. As per official figures, Muslims constitute 14 per cent of Jharkhand's population and the community's votes often become decisive in some constituencies, including Ranchi. A Muslim organisation working under banner of Federal Anjuman Islamia in Gumla has decided to lodge complaint with Congress president Sonia Gandhi against sitting MP and Union minister Rameshwar Oraon. The community feels cheated after electing Oraon in the previous election. Anjuman Gumla district president Khurshid Alam said that they would fax a letter to AICC headquarters stating that if the party does not change its candidate for the Lohardaga seat (Gumla falls under Lohardaga constituency) this time, Muslims would vote for non‐UPA candidates. Most Muslim organisations in Jharkhand have been holding district‐level meetings to chalk out the community's strategy vis‐a‐vis the elections. One crucial meeting is slated for March 20 in Dhanbad which would be attended by over three dozen socio‐political Muslim organisations to discuss the voting strategy. All‐India Mushavarat member Khurshid Hassan Rumi said poor condition of Muslims in India has been revealed in the Sachchar committee report. "The lot of Muslims in India will never improve unless there is proper representation of the community in Parliament and state Assemblies. A forum of Muslim bodies has earmarked four out of 14 Lok Sabha seats and 22 out of 81 assembly seats in Jharkhand to be represented by members of the community. Which ever party abides by this will get our votes," Rumi said.

Pawar attacks “communal politics” of Narendra Modi

147 Nationalist Congress Party president and Union Agriculture Minister Sharad Pawar attacked the “communal politics” of Gujarat Chief Minister Narendra Modi and said there was no need for him to turn Maharashtra into Gujarat. A few days ago, Mr. Modi addressed a rally at Pimpalgaon near Nashik, where he extolled the virtues of Gujarat and criticised the pathetic situation of Maharashtra. Speaking at a rally to mark the launch of the NCP’s election campaign, Mr. Pawar said Gujarat for him was a State which embodied Mahatma Gandhi’s ideals of non-violence. It was not the Gujarat under Mr. Modi’s rule, which spread communal divide, resulting in violence and death of poor people. The NCP leader said there was bloodbath in Ahmedabad and even 60- year-old former Congress MP Ehsan Jaffri was killed in mob violence during 2002 riots, despite so many pleas for help. Mr. Pawar asked Mr. Modi to remember the prices of agricultural commodities like wheat during A.B. Vajpayee’s tenure as Prime Minister. Then the price of wheat was Rs.630 a quintal and now the United Progressive Alliance government had given Rs.1,080 a quintal. The NCP supremo referred to the need for a united fight to counter terrorism. Mr. Pawar lauded the UPA for its historic Rs. 71,000-crore loan farm loan waiver. The Centre’s policies had resulted in record food grains production and godowns were full with rice and wheat. He called upon the Congress to lead a joint fight to address various issues in the country and said that without the Congress, this battle would be weakened. Leading lights of the party, including the former Home Minister, R.R. Patil, who is now State NCP president, and Deputy Chief Minister Chhagan Bhujbal backed Mr. Pawar for Prime Minister. The NCP considers the Nashik area its stronghold and the huge crowd that had gathered to hear the speakers bore this out. As expected, the former Maharashtra Pradesh Congress Committee president, Govindrao Adik, joined the NCP along with several supporters. At the rally, Mr. Adik who had been a critic of Mr. Pawar in the past and a Congress loyalist, said it felt like a homecoming.

Mumbai Attacks and Aftermath:

‘Pak should take stern action against terror’

Mr Pranab Mukherjee said that Pakistan should take decisive action in rooting out terrorism from its territory, including bringing those responsible for 26/11 to justice. Speaking on the Mumbai terror attacks, Mr Mukherjee said it was not enough for the Pakistani government to accept Pakistani "elements" in the attacks, but that the persons involved should be brought to justice. The Union minister urged Pakistan to “dismantle the infrastructure of terrorism in its territory, in order to prevent a repeat of such attacks”. He added that unless Pakistan takes such a measure, the terrorist threat will persist in India and surrounding countries. Despite the tense climate in which dialogue between India and Pakistan is taking place, Mr Mukherjee said the government has decided against discontinuing road and rail links and will continue forging and sustaining contacts at the “person‐to‐person level”. Communication channels with Pakistan have been kept open, the union external affairs minister added. The Union minister urged governments of south and central Asian countries to take proactive measures to eliminate terrorism.

Pakistan yet to provide missing pieces of Mumbai puzzle

148 Even as Federal Bureau of Investigations Director Robert Muller prepares to fly to Islamabad in the hope of pushing forward investigations into last November’s Lashkar-e-Taiba attack on Mumbai, the United States has received no word on its request to interrogate key suspects. Mr. Muller is due to arrive in Islamabad on March 4, at the head of a seven-member team that that is investigating November’s carnage. Indian government sources said the U.S has been pushing hard to question at least six Lashkar suspects arrested by Pakistan last month, but is yet to receive permission to do so. Pakistan’s course of action could determine whether the key perpetrators of the Mumbai carnage ever face trial. Barring Pakistani national Mohammad Ajmal Amir also known by the caste-appellation Kasaab none of the 10-member Lashkar fidayeen unit which attacked Mumbai on November 26 survived. Proceedings against Amir have now commenced in a Mumbai court but most of Pakistan-based commanders and support teams who facilitated the attack are still at large. Documents filed by Mumbai prosecutors last month show that investigations into the attack resemble a giant jigsaw puzzle with most of its key pieces missing. Of the 35 Pakistani nationals named as conspirators, all but five are identified only by code- names, in the main Arabic ‘kuniats’ pseudonyms drawn from the companions of the Prophet Mohammad, and used by jihadist groups as nom de guerre. Among them are Hafiz Mohammad Saeed, the head of the Lashkar’s parent political and religious organisation, the Jamaat-ud-Dawa; its overall military chief Zaki-ur-Rahman Lakhvi; and his Karachi-based lieutenant Zarar Shah. Islamabad had also named a fourth Pakistani national, Hamad Amin Sadiq, as a key Lashkar operator. It is unclear, though, what his precise role was. Indian prosecutors have also named Colonel R. Saadat Ullah, of the Pakistan Army’s Special Communications Organisation, as a conspirator. An internet protocol address registered to Colonel R. Saadat Ullah was among a set of 10 used by Lashkar commanders to communicate with the fidayeen unit. It is unclear whether this computer was used with the SCO’s consent, since several of the other IP addresses seem to have been hacked into. Key figures India has so far been unable to identify include the Lashkar’s commander of operations directed against India, who is known only by the code-names ‘Muzammil’ and ‘Yusuf’. Nor have the real names of the instructors and experts who trained the assault team at Lashkar camps in Punjab and Pakistan-administered Kashmir — Abu Fahadullah, Abu Mufti Saeed, Abu Abdur Rehman, Abu Muavia, Abu Anis, Abu Bashir, Abu Hanjla Pathan, Abu Saria, Abu Saif-ur-Rehman, Abu Imran, Hakim Saheb, Saeed, Kaahfa, and Abu Hamza — been established. Little more progress has been made on identifying the actual perpetrators. Named by prosecutors as Ismail Khan of Dera Ismail Khan, Imran Babar of Multan, Nasir of Faisalabad, Nazir Ahmad of also Faisalabad, ‘Chhota’ Abdul Rehman of Arafwala, Fahadullah of Dipalpur tehsil, Javed of district Okara and Shoaib of Narowal, the terrorists were identified on the basis of information provided by Amir. Independent corroboration of these sketchy details has not been possible. Islamabad has not been forthcoming, either, on its follow-up to evidence which showed that individuals in Pakistan set up e-mail and voice-over-internet links that facilitated the attack. Last month, Islamabad admitted that it lured home Javed Iqbal — a Barcelona resident, who was found to have travelled to Brescia in Italy to wire $238 to a US-based voice-over- internet service that was then used by the fidayeen’s handlers to guide their operations. It offered no information on whose request Iqbal made the transfer, nor on an individual calling himself Javed Ishfaq, who made a separate $250 transfer from Karachi into the same account. Nor has Pakistan made available details on the ownership of the merchant ship al-Husseini, which carried the terrorists from Karachi to mid-ocean, where they then hijacked an Indian fishing boat to travel on to Mumbai. Some Mumbai Police investigators suspect that the al-Husseini was owned by proxies for Karachi-based Indian ganglord Dawood Ibrahim Kaksar. However, efforts by the Mumbai Police to garner details on the al-Husseini through informants in the mafia have so far yielded no hard evidence. Islamabad has rarely stonewalled U.S. requests for counter-terrorism cooperation in the past, and has sometimes simply handed over al-Qaeda suspects to the Central Intelligence Agency in violation of its own laws. However, Islamabad has historically been reluctant to allow investigation of organisations like the Lashkar, which are believed to have

149 close links with the Pakistan Army’s Inter-Services Intelligence Directorate. Intelligence sources in New Delhi said that suspects on whom the U.S. has in the past sought information including some linked to Lashkar activity in Iraq have simply disappeared soon after their details were passed on to the ISI.

Domestic Situation:

Godhra riots’ missing to be declared dead

With the expiry of the seven years' stipulated time, authorities are set to declare 228 missing in the 2002 post‐Godhra riots as dead. The move would take the death toll in the communal carnage to 1,180 from 952. “We have prepared a list of missing people and sent it to the revenue department, which would declare the missing persons as dead,” Additional Chief Secretary (Home) Mr Balwant Singh told PTI. The State Revenue Department would send the details to the district collectorates for the subsequent process. Ahmedabad collector Mr Harit Shukla said the final list of missing people from the police is awaited. “Once we have the list, we will start the process of declaring them as dead, inform the civic authorities to prepare their death certificate and subsequently, compensation claims will be processed,” he added. In the aftermath of large scale communal carnage, a total 413 people had disappeared of which 185 people were found while 228 are missing. The 228 missing people also include 24 children and 27 women. “As per the procedure of law, we will have to revise the final figure of 2002 riots as missing persons are presumed as dead after seven years,” a senior official said. The official said that the process in this regard will be completed in the first week of March as most of the people went missing from 27 February to 5 March, 2002. Families of those, who are missing would be able to claim full compensation as paid to those who died during the riots.

IM suspect spills terror beans

Sadiq Sheikh, an alleged operative of the terror outfit Indian Mujahideen, has unravelled on camera the plotting of the October 2005 Delhi blasts as well as the 2006 Mumbai train bombings, a television news channel claimed. According to the channel CNN‐IBN, Sheikh, who is in the custody of the Maharashtra Anti‐Terrorism Squad (ATS), revealed on camera the modus operandi of the pre‐Diwali Delhi blasts 25 October, 2005, and the 11 July, 2006 explosions in Mumbai that together claimed nearly 250 lives. "All five of us arranged local train passes for the first class compartments beforehand. We also had local train timetables with us so that we could find out the train as per our convenience," the channel showed Sadiq as saying about the Mumbai explosions in a statement broadcast. "We purchased bags and pressure cookers in Mumbai. On the day of the blast, that is on 11 July, 2006, all five of us assembled and we filled seven cookers with explosives. We kept the bombs ready. We had planned the bombs to blast at 6.30 p.m.," he told the channel. Giving details of how the serial blasts were executed on Mumbai trains, Sadiq's chilling confession continues. "Atif (another IM operative) gave me a bag which I kept in one of the local trains," reads the confession. "Abu Rashid and Sajid then joined

150 me in keeping their bags in the other trains. Abu Rashid travelled till Dadar in the same train and then left for Sewree." "After a while, through the general public we were informed of the bomb blasts in the local trains," adds Sadiq. Sadiq, one of the key members who planted bombs on the Mumbai trains that day, was also assigned the "responsibility" of recruiting others into the IM fold. According to the channel, Sadiq's cold‐blooded confessions do not end with the Mumbai blasts. He has also confessed to masterminding the pre‐Diwali blasts in Delhi 29 October, 2005. But the channel did not say when the interview was conducted. "Sarojini Nagar, Paharganj, Govindpuri were the targets for the blast," Sadiq has confessed. "We used to stay in a flat at Jasola. Atif, Shadab, Aarif, Shakeel and Sakib were involved in the group. I used to accompany them in making bombs. I and Atif were now trained in making bombs." "I left for my native place before the Delhi blast and on the day itself I got the news of the blasts in the capital city," Sadiq adds. He was one of the first IM members to be arrested by Mumbai police in October 2008. His interrogation led to the arrests of 20 other IM operatives.

Demand for separate state in Tripura Indigenous People's Front of Tripura (IPFT) has demanded creation of a separate state for tribals in the state. The tribal leaders severed ties with Indigenous Nationalist Party of Tripura (INPT), Congress and National Conference of Tripura (NCT) last week and brought back the IPFT to its old form. Some leaders like Rabindra Kishore Debbarma and Nakshatra Jamatia had a stint in the CPM before joining ethnocentric outfits. They feel INPT was not in a position to protect the tribals' interests. "Self‐determination through a separate state is the only answer to socio‐ economic development of tribals in the state. We will launch a movement for creation of a separate state for tribals within the limit of ADC area," said IPFT president N C Debbarma. He added that they will move the Election Commission for registration after the party formed its constitution. Though IPFT apparently took the cue from Gorkha movement, it claimed it would resort to peaceful means of protest. Harinath Debbarma, who had once been the top functionary of IPFT before its merger with Tripura Upajati Juba Samity in 2002, has also joined the outfit. He has been made the chairman of INFT's advisory committee. "Out of the total population in ADC area, 70 per cent are tribals. So, the demand for a separate state for them within the ADC limits is justified," said Harinath. INPT general secretary Rabindra Debbarma said all the leaders, including NC Debbarma, were expelled from the party for their "anti‐party" activities. While most IPFT leaders had changed their party several times, some of them like Mulukchand Debbarma, Binoy Debbarma and Krishnakanta Jamatia had faced criminal and sedition charges in the past. They were known for their communal overtures and have been often accused of maintaining close relations with terrorist organizations like NLFT. In 2001, police cases were framed against some of them for allegedly sending tribal youths to NLFT camp in Bangladesh for training. The IPFT, which had come to power at the Autonomous District Council in 2000, also witnessed internal fights over alleged financial irregularities. As a result, the chief executive member was changed several times within a span of five years. In 2002, IPFT merged with Tripura Upajati Juba Samity (TUJS) reportedly under pressure from NLFT.

Jamiat resents arrest of Muslims as terrorists

151 The Jamiatul Ulema-i- Hind (JUH) on Sunday registered its strong protest against Muslim youth being targeted in the name of terrorism. The “witch-hunt” should end immediately if India was to be saved from falling prey to the designs of the divisive forces. The Jamiat warned that any interference in the autonomous functioning of the ‘madrasas’ (religious training schools) by constituting a Madrasa Board would not be tolerated as the move smacked of a design to deny ‘madrasa’ education to Muslim children. Making a forceful plea for saving the secular fabric of the country, the Jamiat said the apparent weakness of the secular parties to foil the agenda of the divisive forces posed a grave threat to the unity of the nation. The Jamiat’s strong line on issues galling the Muslim psyche was represented forcefully by JUH president Maulana Syed Arshad Madani, while addressing a ‘Jalsa-i-aam’ (open convention) here. Maulana Madani was particularly harsh on the UPA government. He said that in the last four years, the Muslims had been labelled as terrorists and the move to defame the minority community betrayed a pernicious design. The Maulana slammed the former Union Home Minister, Shivraj Patil, who was accused of implementing the RSS, Bajrang Dal and Shiv Sena agenda. He alleged that the game plan to brand the Muslims terrorists was executed by Mr. Patil. He said the Muslims had always been the loyal citizens of the country and no proof was needed for this. He assailed the practice of arresting Muslim youth, particularly from Azamgarh and Jaunpur in Uttar Pradesh, and branding them as HuJI or Lashkar-e-Taiba operatives after every terrorist attack. Referring to the 26/11 terror attack on Mumbai, the Maulana said Mumbai Anti-Terrorism Squad chief Hemant Karkare would have exposed the real players behind the series of bomb blasts and terror attacks in different parts of the country if he had not been killed. The Jamiat chief demanded a CBI probe into the Batla House encounter and said that the Muslims arrested on charges of terrorism should be released. The president of Jamiat’s U.P. wing, Maulana Syed Ashhad Rashidi, laid stress on strengthening the secular forces, while the Mufti-e-Hind, Maulana Mufti Manzoor Ahmed, said the controversy over Muslims sporting beard amounted to interfering in their personal affairs. Uttar Pradesh Congress Committee president Rita Bahuguna Joshi said the root cause of terrorism lay in injustice and mistrust. She lauded the role played by the Muslims in the freedom struggle.

Economic Front:

Tainted Satyam's assets valued at Rs 4,000 crore

The market value of the assets of tainted Satyam Computer Services has been estimated at around Rs 4,000 crore after netting out the current and long‐term liabilities. The company's fixed assets ‐ mainly land and property ‐ have been valued at around Rs 5,000 crore. This includes two prime properties in Hyderabad, valued at around Rs 2,500 crore. The major current assets and liabilities of the firm have been projected at Rs 700‐800 crore each. Current assets include receivables or payments due from clients, while liabilities include payments due to vendors and salary outgo as on date. Besides this, long‐term liabilities of Satyam have been estimated at around Rs 1,000 crore and the amount includes a bridge loan of Rs 600 crore for meeting working capital requirements. "Prospective bidders are set to be furnished with the gross market value of assets that is roughly around Rs 3,500‐4,000 crore," said a source. But potential bidders may have to independently estimate legal liabilities arising from the class action suits filed in the US. Satyam is facing a dozen class action suits in the US, after its

152 disgraced founder B Ramalinga Raju admitted to perpetrating a Rs 7,000 crore financial fraud in January this year. The company is also locked in a legal tussle with a UK‐based mobile services provider Upaid. "The valuation of Satyam will be a challenge for prospective bidders given that the actual amount of receivables and payables will remain uncertain till the time the accounts of the company are re‐stated. Besides, the uncertainty on liabilities arising from the US action suits could make it more difficult for potential bidders to come close to the actual valuation of the firm,” said Nishith Desai Associates head M&A Nishchal Joshipura. KPMG and Deloitte have been given the mandate to re‐state Satyam’s accounts over the seven years or so, but the process could take a while. It is reckoned that the board cannot wait for a re‐statement of the accounts to arrive at an enterprise valuation, as it could lead to further loss of clients and employees. The Satyam board is expected to invite Expression of Interest (EoI) from bidders after getting approvals from capital market regulator Sebi and the Company Law Board on the pricing guidelines for preferential allotment of shares to the strategic investor. The CLB has already authorised the Satyam board to make a minimum 26% preferential allotment of equity shares to a strategic investor.

Recession may pull down India's GDP to 3%: Morgan Stanley Continuation of the bearish phase in the global economy could pull down India's economic growth rate to a dismal 3 per cent in 2009, said international financial services major Morgan Stanley. Morgan Stanley's research report released said, depending upon the extent of economic recovery in the developed world, India's Gross Domestic Product (GDP) growth rate during 2009 could range between 3 per cent and 5 per cent. "Based on bull‐bear case outlook for G7 (club of developed countries), we see bull scenario growth for India at 5 per cent in 2009 and 7.4 per cent in 2010 and bear case at 3 per cent in 2009 and 4.5 per cent in 2010", it added. However, on an average, the report projected India's economic growth rate for 2009 at 4.3 per cent and for 2010 at 6.1 per cent. According to advance estimates of national income released by the government recently, the economic growth rate during 2008‐09 is expected to moderate to 7.1 per cent from 9 per cent in the previous fiscal. The third quarter growth (October‐ December 2008) rate has been estimated at 5.3 per cent, down from 8.9 per cent posted during the corresponding period last year. On the outlook for equity markets, Morgan Stanley said the outcome in 2009 would depend upon two key factors election results and global developments. "If the global economy turns around, India will likely start faring better. However, elections in May will still hold the key to a sustainable recovery," the report said. Making a case for a strong government following general elections in April, the report said, "a sustained turnaround in growth will need a fiscal response, which in turn depends on a strong government". On the other hand, it added, "a weak government could make a recovery tepid and long. It could also lead to a paralysis in the reforms process and damage medium term growth." The report added that non‐performing loans are already rising in various business segments like real estate, personal loans and exports. With industrial production having reached a 16‐year low of ‐2 per cent in December 2008 and cost of capital is still high, it said, "the non‐performing loans will rise further" and will make banks risk averse to lend to the corporate sector, resulting in a vicious slowdown".

153 India lifts import ban on Chinese toys India on Monday lifted the ban on importing toys from China provided they conform to international safety norms. India had earlier on January 23 banned the import of Chinese toys for six months on grounds of public health and safety. According to a public notice by the Commerce Ministry, the import of toys from China will be allowed if they conform to the standards prescribed in "ASTM F963" or "ISO 8124 (parts I ‐ III) or IS 9873 (parts I ‐ III)". These regulations primarily deal with safety and health hazards. The government further said that the imports from China will have to be accompanied by a requisite certificate from laboratories accredited to the International Laboratory Accreditation Cooperation. Following the restrictions on toys, the Chinese media had reported that Beijing was contemplating dragging India to the WTO challenging the ban. However, commerce and industry minister Kamal Nath had said the ban was WTO‐compatible. The toys market in India is estimated at Rs 2,500 crore while the volume‐driven, price‐competitive Chinese toys are estimated to control 70 percent of the global toys market.

Economy to bounce back, 7% growth seen in late FY'10: PC Union home minister P Chidambaram sought to hammer the point that domestic economy is well on its way to recovery by saying it will clock seven per cent growth by third‐fourth quarter of the next fiscal. "By the third and fourth quarter of next fiscal, I am confident that the economy will show an upturn and clock a seven per cent growth," Chidambaram, who was finance minister till January, told an international conference here. He said the economy would return to the nine per cent growth trajectory in 2010‐11. "The growth rate was at 5.8%, investment virtually at halt, inflation on rise and there was an uncertainty when we (UPA) came to power in 2004," he said, adding that the Government had a brilliant run during its tenure. The growth of 7.5%, 9.5%, 9.7% and 9% during the last four years were the best period ever and India became the second fastest growing economy after China, he said. "Our savings and investment rate went up and tax‐GDP ratio also moved up," Chidambaram said.

Exports fall 13% in Feb

Even the truncated exports target of $175 billion for the fiscal would be hard to meet as the country's overseas sales dipped by 13 per cent in February the fifth decline in a row. According to quick estimates of the government, imports also fell for the second consecutive month by about 18 per cent during the period. Exports in February contracted to $13.04 billion, while imports shrank by 18.1 per cent to $17.02 billion, reducing the trade deficit to $4 billion compared to $5.69 billion in the same period last year. The cumulative exports during April‐ February 2008‐09 stood at $157.3 billion compared to $142.85 billion in the corresponding period last year. While imports in the same period grew by 21 per cent to $260.35 billion from $215.22 billion in the year ago period. Even to touch the $175 billion exports target, the country

154 requires about $18 billion in the next three weeks, which appears a toll order. “By seeing the continuous dip in the exports, we expect that India's exports will end up on $168‐ 170 billion during the financial year,” the Federation of Indian Export Organisations (Fieo) president, Mr A Sakthivel said. He said that still the country requires over 18 per cent growth in exports to meet the scaled down target of $175 billion. After registering a handsome growth of over 30 per cent in the first half of the financial year, Indian exports entered into the negative territory and plunged by 12.1 per cent in October 2008. In November exports dipped 9.9 per cent dip, 1.1 per cent in December and 15.9 per cent in January 2009.

Geo‐strategic developments:

‘Navy to have full responsibility for coastal security’

In a major step towards strengthening coastal security, the government today decided to give the entire responsibility to the Navy while announcing a slew of measures to strengthen the Coast Guard. “The Indian Navy has been designated as the authority responsible for the overall maritime security which includes coastal security and offshore security,” defence minister Mr AK Antony said after the keel laying ceremony of the country’s first indigenous aircraft carrier. Elaborating on the new coastal security system which would give a thrust to strengthening coastal security, Mr Antony said four joint operation centres are to be set up in Mumbai, Visakhapatnam, Kochi and Port Blair under the charge of the existing Naval Commanders‐in‐Chief (C‐in‐Cs) which will be jointly manned and operated by the Navy and Coast Guard. The Navy has been given charge of joint operations of the Navy and Coast Guard so as to “ensure that the assets are optimally deployed and there is synergy between the two organisations”. A high‐level meeting here has favoured issuing of identity cards to fishermen and multi‐purpose national identity cards to other people in coastal villages, as part of efforts to strengthen coastal and maritime security of the country. The meeting, chaired by Cabinet secretary Mr KM Chandrasekhar and attended by representatives of the Navy, Coast Guard and various coastal states, also reached a broad agreement about putting in place a uniform system of registration of all types of vessels.

New BrahMos test successful

A new version of the BrahMos supersonic cruise missile meant to attack a particular target out of a cluster on land was successfully tested at the Army’s range at Pokhran, Rajasthan, on Wednesday. This was its 19th flight and the launch took place at 10.35 a.m. In its previous flight on January 20 it missed the target following a software glitch. This variant is called the Block II version. BrahMos is essentially an anti-ship missile. Informed sources described it as “a difficult mission” because the target was just 50 km away instead of the normal range of 290 km. Besides, the missile had to perform “a discriminatory role”: it had to hit the desired target out of a cluster of small targets, resembling “a factory-type situation.” The time given to the missile to perform manoeuvres and hit the target was much less than the normal flight. But these “constraints were overcome” with the Global Positioning System (GPS) update coming in correctly and the missile homed in on the desired target, sources said. The missile flew at a velocity of Mach 2, twice the

155 speed of sound. The normal version flies at Mach 3. Last time the missile failed to hit the target as the GPS did not have time to correct the error in the inertial navigation system (INS). So the GPS update did not come in. This time, the Defence Research and Development Organisation (DRDO) ensured that even if the GPS update did not flow in, the missile would hit the target. Modifications were made in the software and simulation runs conducted. The launch met different mission requirements.

Kashmir:

Social front:

Slumdog money being used to help Mumbai slum children: Boyle The Oscar‐winning director Danny Boyle has said that the money earned from Slumdog Millionaire was being channelled back to Mumbai to help the slum children. His comments come shortly after child actor Azharuddin Ismail's father demanded more money from the director, the Daily Mail reported. "They have received some money, which has disappeared, so we have put in place an educational plan. They will receive further payments when they have finished their education and we have also given them money to buy a house," said the director. Boyle and the producers had come under sharp criticism after some reports said that the child actors were still living in the slums despite film being a smash hit internationally. The producers denied such allegations by arranging a Los Angeles trip for the children to attend the Oscar ceremony. They have also promised to buy houses to the child actors.

Vijay Mallya buys Gandhi's items for $1.8m

Hours after high drama and frenzied bidding, Mahatma Gandhi's personal belongings were bought for USD 1.8 million by industrialist Vijay Mallya, who said he "bidded for the country" at the auction after last‐ditch attempts by India to stall the sale of the memorabilia fell through. Just before the auction, owner of the items James Otis had agreed to withdraw them from the auction but the auction house did not agree. It argued that it could have a big liability if it allowed the items to be withdrawn from the auction as more than 30 bidders had already registered for them and some have even sent in written bids. As soon as the auctioneer announced sold, a large number of Indian‐Americans who had come to witness the auction or to bid burst into loud round of applause. The auction activity was suspended for several minutes as the community leaders congratulated each other. The community leaders expressed relief that the promise of keeping Gandhi's iconic items, including his glasses, sandals, pocket watch, plate and a bowl, in India has been fulfilled. Tony Bedi, who bidded on behalf of Mallya said that he was "bidding for the country" and this sale means that Gandhi's items would now return to India.

156 Urdu litterateur visualises it's revival "Once the most spoken language of Bharat, `Urdu' is perishing. In the pre‐Independence era, `Urdu' was the official language which was widely used in the courts and other government departments. Therefore, India is `Mayka' to this language and Pakistan is `Sasural'. Save this language from dying," said Hamida Banu, a noted Urdu litterateur, on Thursday, who along with her husband, famous scientist Prof Anil K Chopra of University of California, Berkeley, USA, is currently on a visit to IIT‐Kanpur. `Urdu' has been accorded the status of second official language in the state of Uttar Pradesh. An Indian by birth, Hamida Banu has a vision for the revival of dying Urdu language in India. Talking about her Indian connections she explained that she was born and brought up in Udaipur, Rajasthan. An alumni of Aligarh University and University of California, Berkeley, Hamida has devoted herself to the cause of the revival of the fast fading Urdu language. Hamida who lives in California and has been conducting a campaign to spread the Indian language to western shores, added that it gives her a sense of contribution when she imparts the language to the Indians. "This will help in reviving the dying heritage of India, a widely spoken language by the people irrespective of their religion," she added. "It's a sweet language and has all its roots in India. Even our neighbouring country Pakistan has adopted the language from us. The first home of this language is India, I take class at my residence to ensure that this language spreads," said Hamida Banu. Hamida Banu added, "At times students drive for more than two hours to reach my home. This interest of the students gives me an impetus from inside to contribute more."

Foreign Relations:

Pakistan-based terror a grave threat to entire world: India

India has expressed shock at Tuesday’s attack on touring Sri Lankan cricketers in Lahore. “We are shocked at the audacious attack. Terrorism based in Pakistan is a grave threat to the entire world. It is in Pakistan’s own interest to take prompt, meaningful and decisive steps to dismantle the terrorist infrastructure once and for all,” an official spokesman said. India offered its sympathies to the Sri Lankan players and others caught up in the attack and wished them speedy recovery. Home Minister P. Chidambaram said: “We condemn the incident. We are sorry for the Sri Lankan team. We hope that players are safe and will recover.” Asked for the Indian response to the charge made by the Lahore Commissioner, the Minister asserted that India had nothing to do with it. Till the infrastructure and facilities available to terrorists in Pakistan were dismantled, this could happen again, he added. Minister of State for External Affairs Anand Sharma said the Lahore attack “underscores the enormity of the threat” that emerges from terrorism centred in Pakistan. India had been insisting on dismantling of the terror infrastructure in Pakistan and Tuesday’s attack once again highlighted this need. The Communist Party of India (Marxist) said the heinous attack highlighted the grave security situation in Pakistan and the extent to which terrorist activities had grown there. In a statement, the Polit Bureau said the people of Pakistan would surely realise how serious a threat terrorism was, and hoped that they would unitedly and resolutely take up the challenge of facing it. Echoing similar views, the CPI said the attack highlighted the grave security situation in Pakistan. Its central secretariat urged the people of Pakistan to realise the severity and savagery of terrorism operating from and in the territory of

157 their country. “We appeal to them to bring pressure to eliminate terrorism and join the secular- democratic forces of the subcontinent to root out this menace forever,” the party said. The Congress on Tuesday condemned the attack and asserted that Pakistan was not just a failed State but fast becoming the Somalia of South Asia. Talking to journalists, party spokesman Manish Tewari likened the attack to the killing of Israeli athletes during the 1972 Munich Olympics. What happened in Lahore once again pointed to the continuing chaos in Pakistan. Pakistan was surrendering its territory to terrorists. After engaging in export of terror for so many years, it was now finding itself at the receiving end, he said. Asked whether the Congress subscribed to Pakistan’s view that it too was a victim of terror, Mr. Tewari said there would not be any takers for such an argument. “It is a victim of its own policies and it would be erroneous to see it otherwise.” The terror attacks in Pakistan were a testimony to the fact that the writ of the government extended only to Islamabad. The international community should focus on finding new ways to dismantle the terror infrastructure in that country. Borrowing a quotation from the former U. S. Secretary of State, Madeleine Albright, who described Pakistan as a “migraine for the international community,” he said, “Now Pakistan is becoming a time-bomb.” The Bharatiya Janata Party said the attack was an indication of the “ugly reality” of Pakistan as the epicentre of terrorism. Party spokesperson Ravi Shankar Prasad noted that those who promoted terrorism as an instrument of state policy were now facing the fallout of that policy. “Yet, we see no change in the mindset in Islamabad,” Mr. Prasad added. Calling for a unanimous Indian response, Mr. Prasad warned that the government should take note of what happened in Lahore as well as recent developments in Bangladesh and strengthen border security and take other steps to ensure India’s safety. “The Taliban is now just 30 kilometres away from India,” Mr. Prasad said, and if Pakistan President Asif Ali Zardari’s intentions were honourable, as certified by External Affairs Minister Pranab Mukherjee recently, then that sincerity should be reflected in Pakistan paying heed to New Delhi’s demand to hand over wanted terrorists. Condemning the Lahore attack on the Sri Lankan team, Mr. Prasad noted that not for decades have terrorists specifically targeted sportsmen. The last time that happened was at the Munich Olympics.

In Pakistan, India is emerging as prime suspect

Despite an early statement by the Governor of Pakistan’s Punjab province, Salman Taseer, that “the same people who carried out the Mumbai attacks are behind the attack in Lahore,” India is emerging as a prime suspect in the eyes of many Pakistanis. In the hours following the Lahore attack, some in Pakistan’s influential electronic media said on air they did not want to mirror the finger-pointing by the Indian media following the Mumbai attacks. Even so, many discussions on several television channels with talking heads and politicians, both elected and un-elected, centred on speculation that Indian intelligence agencies were responsible for the brazen commando-style attack on the Sri Lankan cricket team as a revenge against the Mumbai attacks.Rehman Malik, who heads the Interior Ministry, only talked of a “foreign hand,” refusing to name the country. But at least two elected representatives of the Pakistan People’s Party Riaz Raja, a member of the Punjab provincial Assembly and Nabeel Gabol, who is in the National Assembly openly accused India for the attack. Jamat-i-Islami leader Qazi Hussain also accused Indian intelligence agencies of planning and carrying out the attack. Commentators are also not entirely ruling out the possibility of Pakistani militant groups hitting out against the state, with some bringing up the possibility that it could even be a retaliation for the action the government took against the Punjab-based Laskhar-e-Taiba following the Mumbai attack. But the Indian angle came up in different ways. In an apparent effort to link India with the attack, Geo Television played a clip of Congress president Sonia Gandhi saying at a public meeting that Pakistan should not mistake India’s desire for peace as a sign of its weakness, and that India was capable of giving a “fitting response.” Lt. Gen. (retd.) Hamid Gul, a former head of the Inter- services Intelligence, told one TV channel that the Liberation Tigers of Tamil Eelam, cornered by

158 the army in Sri Lanka, had carried it out at the behest of India’s Research and Analysis Wing. By Tuesday evening, rumours were doing the rounds that the weapons found at the site of the attack bore Indian markings. They persisted despite Mr. Malik’s remarks that only a forensic analysis would reveal the origins of the weapons. The blame game was kicked off by well-known TV anchor, Kamran Khan, who said the incident was directly linked to the Mumbai attacks. He grilled political leaders and ministers over who they thought was responsible for the attack. "For any small or big incident, it doesn't take seconds for India to blame Pakistan. But here we have spineless policy-makers, too afraid to point fingers towards the perpetrators of this cowardly attack," he frothed. Pakistan's parliamentary affairs minister Baber Awan said Indian intelligence agencies were behind the assault.

Lahore strike may spell total isolation for Pak

For Pakistan, Tuesday's terrorist attack on the Sri Lankan cricket team is the beginning of the kind of international isolation the civilian and military establishment fear, but the Taliban and other terrorist groups welcome. It will be a long time before anybody comes to play anything in Pakistan. It's a deeper blow because cricket is akin to religion in Pakistan as it is elsewhere in the subcontinent. It's also Pakistan's only claim to being a credible host. And Sri Lanka considers Pakistan to be a friend. Sri Lankan President Mahinda Rajapakse went against advice to send his players to Pakistan, after India had refused, in the name of South Asia solidarity. The Karachi stock exchange plunged on Tuesday, because, as a stockbroker said, this would spell the end of investment, foreign and domestic in Pakistan. In fact, Pakistan is heading towards becoming a "quarantine" state, where only the US and its drones will venture. It's the closest the world has seen Pakistan becoming a failed state, where terrorists and not the state is calling the shots. The Pakistani state has been staring at this reality for a while, but it was hit in the solar plexus on Tuesday. The attack also happened on the day when the Pakistan army claimed to have had some success against the Taliban in Bajaur agency in FATA, claiming to have beaten the Taliban back in Inayet Kali, a rare success. Yet, on March 1, US drones pounded a Baitullah Mehsud stronghold in Sararogha, South Waziristan, and it's still unclear whether he was hit. But certainly, it brought home the fact that the Pakistan government, aided by the US, is following its ill‐advised policy of good Taliban, bad Taliban. So Mehsud is bad Taliban and Maulana Fazlullah is good. It makes no sense, and Pakistan will have no respite from the Taliban trying to take over its sovereignty, because if one group does not do it, another will, epecially since there is no difference in their ruling ideologies. This is something the US has not realised, intent as it is on "stabilizing" Afghanistan. In fact, its search for "good" Taliban to arm in Afghanistan, a la the Anbar awakening, is destined to come to similar grief. The fundamental issue that Pakistan, nay the US, will have to confront is that Pakistan either walks back from its strategic ideology or risks an implosion and it's actually staring that in the face. The US too needs to take a serious look at its aid package to Pakistan, particularly after allegations that Maulana Fazlullah has been paid some $6 million by the Pakistani government. Senators John Kerry and Richard Lugar are pushing yet another aid package for Pakistan. The Kerry‐Lugar bill is expected to triple military aid to Pakistan to $1.5 billion, after more than $3.8 billion of $5 billion of US assistance to Pakistan has probably been diverted by Pakistan to fund terror. In April, Japan will be hosting a

159 donors' conference for Pakistan, which will be held alongside the next Friends of Pakistan meeting. It will be time for some serious steps by the world, and Pakistan itself.

Pranab calls for political solution

The military success of the Sri Lankan Army (against the Liberation Tigers of Tamil Eelam) should be “quickly followed” by a political solution involving a credible devolution that will meet the legitimate aspirations of all communities, including the Tamils, “within the framework of a united Sri Lanka,” External Affairs Minister Pranab Mukherjee said. In the interim period, India had appealed to the Sri Lankan government to work out “appropriate and credible procedures for the evacuation of internally displaced persons to safety.”

BUSINESS AND POLITICS IN THE MUSLIM WORLD

ASIA REPORT

March 18, 2009

Nadia Tasleem: Report on Asia 170

Ashia Rehman: Report on Fertile Crescent 177

Madiha Kaukub: Report on GCC 223

Tatheer Zehra: Report on South East Asia 254

Sadia Khanum: Report on India 342

160

BUSINESS AND POLITICS IN THE MUSLIM WORLD

India & East Asia and GCC & Fertile Crescent

Nadia Tasleem

Weekly Report from 7 March 2009 to 13 March 2009

Presentation: 18 March 2009

This report is based on the review of news items focusing on political, economic, social and geo‐ strategic developments in various regions namely; India, East Asia, GCC and Fertile Crescent from 7 March 2009 to 13 March 2009 as have been collected by interns. Summary

India:

Political Front:

161 Electoral campaigns dominated Indian political scene. All parties remained active in finalizing their alliances and seat share accordingly in various constituencies. The most promising development in this regard seems to be break up between BJP and BJD in Orissa. Meanwhile a Third Front has emerged comprising of nine parties namely; CPI, CPI‐M, Telangana Rashtra Samithi, Telugu Desam Party, AIADMK, Forward Bloc and RSP; BJD is also expected to join Third Front. BJP and Congress have accused Third Front for increasing communalization in the country. Besides this UP has been declared as the most important state for having highest number of voters, i.e. 11,64,24,101 out of 71,42,87,814 in the whole country. Lastly BJP has expressed satisfaction regarding its popularity in MP, Rajasthan and Gujrat.

Besides that killing of Dalits in Tamil Nadu over the issue of entry into temple, killing of four people by Naxalites in Bihar, two other reported deaths during communal clashes in Varnasi and injury of a Christ and five other women during an attack against church in Bihar; came up as some other significant developments. Meanwhile government imposed an undeclared curfew in most parts of Srinagar following protests over the death of a teenager in police firing.

As far as Mumbai attacks are concerned Pakistan has accused India for lack of cooperation regarding investigation into that case but India in response handed over some other documents to find out more details.

Social Front:

Different scholars have asked Muslims to vote for people in accordance with their performance and not on religious grounds. Besides that corruption cases have been filed against seven top bureaucrats in Jammu & Kashmir.

Geo‐strategic Front:

US has assured India that it will proceed with Indo‐US nuclear deal. Besides that India sent Central Industrial Security Force (CISF) commandos to Pakistan for security of Indian diplomats there amidst instability in the country. Meanwhile prominent Muslim leader of Jamaat‐e‐Ulema‐ i‐Hind, Mehmood Madani, asked former President of Pakistan, Pervaiz Musharaf, to avoid taking names of Indian Muslims in his discussions regarding any kind of Indo‐Pak dispute. He further added that all Muslims in India belong to the country and can resolve their issues at their own.

Economic Front:

India has lost over half a million jobs in the last three months of 2008 in the wake of global economic slowdown. Meanwhile the growth rate in industrial production has further declined. As far as inflation is concerned, it fell to more than a six‐year low of 2.43% for the week ended

162 February 28 against 3.03% in the previous week mainly on account of a fall in prices of manufactured products and some food items. Meanwhile the Investment Survey 2008 carried out by the United Nations Industrial Development Organisation (UNIDO) claims that despite the fact that not many large industrial projects for which memoranda of understanding have been signed have taken off, Orissa continues to attract more investments and investors are still keeping high hopes.

East Asia:

Political Front:

Election campaigns seem to be in full swing in Indonesia. One potent development in this regard is that for the first time candidates, who will win the upcoming parliamentary elections, will directly become members of Parliament. Meanwhile Indonesia has got 20.2 million U.S. dollars grants from multilateral and bilateral schemes to assist the country's parliamentary and presidential polls later this year. A recent survey being carried in Malaysia regarding UMNO declared the biggest party of the country to be the most corrupt political party. Peace advocates in Mindanao (Philippines) have announced to assemble at various points region wide on March 18 to call for the resumption of peace talks between the government and the Moro Islamic Liberation Front (MILF). Meanwhile armed forces in Philippines have accused MILF for harboring members of the Abu Sayyaf Group. Thailand’s leading opposition party filed an impeachment motion against Prime Minister to Senate President, for a debate in the House. PM in response claimed that he would answer all questions that would be raised against him in the House. The Minister of Energy in Brunei has asked job seekers in the country not to rely on government for employment.

Social Front:

New anti‐porn agenda being pursued by Indonesian government has brought criticism by many non‐Muslims, regarding creeping Islamization of the island. Indonesia's second largest Islamic organization, Muhammadiyah, has called on Islamic countries to build concrete solidarity networks to handle conflicts and poverty in predominantly Muslim countries. Meanwhile government has raised its volcano alert for Mount Semeru in East Java to maximum. Sultan of Malaysia has asked Muslims to unite to face different challenges and obstacles. According to the Grant Thornton International Business Report, female workers hold 47 per cent of top roles at private sector firms in the Philippines, the highest proportion of any country in the world. Government of Thailand seems concerned about the issue of Rohingya Muslims. The Archdiocese of Vietnam has held a series of seminars on evangelization in recent weeks, to address mounting concerns about the ineffectiveness of the Church's missionary efforts. Recent

163 reports of Bruneians involved with international drug smuggling syndicates have caused a stir in the relatively peaceful state of Brunei.

Geo‐strategic Front:

The Philippine president has signed a law affirming sovereignty over islands also claimed by China and Vietnam, sparking protests over the control of strategic South China Sea islands. Singapore's Foreign Affairs Minister has recently signed the maritime boundary agreement with Indonesia. Vietnam and Laos have agreed to develop a road link between the two countries to boost their bilateral ties. UNESCO officials have asked Thailand and Cambodia to start constructive talks to resolve their dispute.

Economic Front:

Indonesian President Susilo Bambang Yudhoyono asked the country's banking industry to drastically cut interest rates for lending, so as to ease business costs in order to boost economic growth. It is generally assumed that foreign shareholders would remain in the Malaysian market due to its stability despite the ongoing global financial uncertainty. Philippine's Central Bank claimed that country's consumer confidence on the local economy has improved. Thai economy has further deteriorated and main sufferers seem to be rural and urban poor. Meanwhile economic crisis has led many Burmese migrant workers to loose jobs. Singapore shares closed 3.71 per cent down, hitting their lowest level in nearly six years indicating negative impacts of economic recession upon country. Meanwhile Vietnamese stock market has also suffered a lot because of ongoing economic crisis. In order to boost economy Vietnam has been looking towards Qatar as well as EU to enhance economic collaboration with them. Cambodian government seems to be highly concerned about his task of poverty reduction amidst economic downfall. Meanwhile development of small and medium‐size businesses have been considered as key to drive economy towards recovery.

GCC:

Political Front:

Security forces in Bahrain have fired tear gas and rubber bullets at a crowd protesting the government's takeover of a stretch of coastline used by Shiite fishermen.

Social Front:

164 A Book Fair that has recently been arranged in Saudi Arabia has raised concerns of hardliners as it can pave way for mix gathering in the country. In the meantime a woman has been arrested in Mecca in Saudi Arabia for driving a car. Women are prohibited from driving on all public roads in Saudi Arabia, a ban that has triggered several high‐profile protests by women's rights activists. Meanwhile Brazilian presence in the Fair also seems to be a point of concern for many in the country. Similarly the sentencing of a 75‐year‐old widow to 40 lashes and four months in prison for mingling with two young men who were reportedly bringing her bread has sparked new criticism of Saudi Arabia's ultraconservative religious police and judiciary. Meanwhile Saudi columnists, unlike their own government and many others in the region, have accused Sudanese President and claimed that he has been rightly accused. The Bahrain Center for Human Rights (BCHR) expresses again its deep concern regarding the mounting dangerous role of the National Security Apparatus (NSA) at the expense of liberties and human rights in Bahrain. The Inter‐ Parliamentary Union (IPU) said the percentage of women in ministerial positions in Kuwait is higher than that in many much bigger countries. According to a 2008 analysis, that percentage is higher than in Egypt, Syria, Lebanon, Saudi Arabia, Turkey, Iran or Pakistan. Kuwait is considered as a moderate country and its Awqaf has been credited for that by government officials. Besides that severe sandstorm in Saudi Arabia and Kuwait disrupted oil exports in both countries. Despite sharp decline in need of migrant workers; Saudia, Kuwait and Qatar are still hiring Filipino workers.

Geo‐strategic Front:

The Saudi diplomat called on his fellow Arabs to join together to confront what he termed the "Iranian challenge" posed by the non‐Arab nation's nuclear program and its intentions pertaining to security in the Gulf. In response a prominent Iranian scholar has criticized Saudi Arabia's foreign minister. The United Arab Emirates has refused to grant a visa to Israel's representative on the International Chamber of Commerce's Banking Commission for a conference in Dubai. Morocco has cut diplomatic links with Iran, after an outcry in the Sunni Muslim world over a statement by an Iranian official questioning Sunni‐ruled Bahrain's sovereignty. Bahrain in response has expressed gratitude to Morocco. Kuwait seems keen to work on acquisition of nuclear energy. Qatari Minister of State for Foreign Affairs announced that the second round of talks on Darfur peace is expected to start within the next three weeks in Doha. Meanwhile Qatar and Albania have reiterated their resolve to strengthen relations in all fields, especially in the economic sector.

Economic Front:

According to the Minister of Foreign Trade, the UAE has succeeded in diversifying its sources of income despite being one of the world's top oil exporters and is now in a position of economic

165 strength. UAE has been declared as the best performing GCC market in February. Strong oil prices have brought major boost in Oman’s economic surplus. Persian Gulf stocks declined amidst global economic crisis.

Fertile Crescent:

Political Front:

Speaker of Iraq’s Kurdistan parliament said that the Independent High Electoral Commission (IHEC) could postpone the parliamentary elections in the region, scheduled in May, for one or two months because of the suggested amendments have yet to be completed. Meanwhile President of Iraqi Kurdistan region has asked government to resolve Kirkuk issue in accordance with the constitution. Hezbollah and AMAL Movement criticized the top judicial appointments, which has been approved by President of Lebanon. Avigdor Lieberman, of the Yisrael Beiteinu ultra right‐wing party in Israel (known for its extremist views against Arabs and Palestinians), has become the most likely candidate for foreign minister in Israel's forthcoming right‐wing government. Meanwhile corruption charges against Lieberman suggest that he probably would have to leave government after completion of investigation against him. The resigned Palestinian Prime Minister, Salam Fayyad, urged Palestinian president Mahmoud Abbas to back the formation of a national unity government. Meanwhile Mahmoud Abbas Mahmoud Abbas, asked him to remain at his post until the internal Palestinian talks achieve positive results. Hamas however denounced to accept Salam Fayyad as Palestinian PM.

Social Front:

A court convicted an Iraqi journalist who hurled his shoes at President George W. Bush of assaulting a foreign leader and sentenced him to three years in prison. In response the Iraqi journalists’ syndicate appealed to Iraqi President and Prime Minister to release him. A report by the International Committee of the Red Cross (ICRC) claimed that an estimated one to three million families in Iraq are supported by women who have lost their father or husband due to conflicts and wars. Being conscious about preservation of Arabic language, Bashar al‐Assad stressed that Syria has not and will not save any effort for the sake of preserving, supporting and attention given the Arabic language because it preserves history, heritage, culture, and the Arab identity. Human rights activists in Jordan highlighted the importance of public participation in elections as a key element in the political development process and a primary contributor to human rights.

166 Geo‐strategic Front:

Iraqi PM has recently paid a visit to Australia to boost ties with her. The senior U.S. government official, speaking on the condition of anonymity to a group of journalists in Washington, clearly expressed discomfort with the British decision to open low‐level contact with HezbAllah. Syrian Foreign Minister discussed ways to strengthen ties with Sudan during his meeting with Sudanese Ambassador. He has also condemned ICC for its decision regarding Sudanese President. Syria has recently signed agreements with India to boost ties with her. Efforts are also being made by USA and Syria to bridge gap between the two by enhancing ties in various sectors. Jordanian King sent a verbal message to Syrian President Bashar Assad concerning means to boost bilateral ties and the latest developments in the region. Jordanian and Egyptian Presidents underlined the need to realise Arab solidarity to serve broader Arab interests and deal with common challenges. Mauritania has announced to close Israeli Embassy because of Palestinian issue. All the while leaders of Hamas have reached Egypt for unity talks.

Economic Front:

Deputy PM of Iraq has discussed ways to boost economic and trade ties with Russia. Jordanian King underlined the urgent need to foster partnerships among business communities around the world to deal with the current global financial crisis. Meanwhile King also emphasized the need to proceed with efforts to attract more foreign investment and implement projects, particularly in the tourism sector.

BUSINESS AND POLITICS IN THE MUSLIM WORLD

Fertile Crescent

Aisha Rehman

From 7th‐ 13th March, 2009

IRAQ

Political front

• Al‐Mufti says parliamentary elections to be postponed • Foreign troops withdrawal depends on Iraqi forces’ capabilities - VP • Kirkuk behind all Kurds’ problems with Iraqi governments - Barzani

167 • Deputy premier, SRSG mull political situation after elections • Iraqi shoe attacker sentenced to 3 years in prison Geo strategic front

• British commander says forces accomplished Iraq mission • PM heads to Australia on Tues. for political, economic talks • PM lauds Australian forces’ role, urges similar efforts in reconstruction • After Iraq, more U.S. caution on preemptive attacks: Gates • Arab League chief to visit Baghdad next week

Economic front

• Ministry relies on state‐run engineering firm to boost oil exports • Iraqi‐Egyptian committee agrees to boost economic cooperation • Lebanese firm to construct 15 thousand residential units in Karbala • Iraqi, Australian premiers sign 6 MoUs • VP discusses with UAE amb. Economic ties • Deputy premier, Russian envoy take up economy, trade Social front

• Iraqi marshlands in danger once again • Government officials surrender 531 artifacts to Iraq Museum, among them gold and silver coins • Urgent / Iraq’s court upholds death sentence against 2 officials • Red Cross says millions of women‐headed families in Iraq • Iraqi press syndicate appeals to Talabani, Maliki to release Zaydi

LEBANON

Political front

• Hezbollah, Amal criticize Lebanon's judicial appointments • Lebanon's top three leaders broker deal on state budget • In other elections‐related news, the March 14 Forces announced Wednesday the alliance would hold its second annual conference on March 14, 2009. • Michel Murr: Aoun Is Main Symbol of Alliance With Syrian Regime

Economic front

Social front

Geo strategic front

• US envoy: Dialogue with Syria not at Lebanon's expense

168 • Feltman told Syria: Unity government is a Lebanese issue • Signs of U.S. Discontent Over British Contact with Hizbullah • Jumblat: Lebanon Still Requires 'Stabilization' and Keeps to Dialogue with Berri • Russian Expert: Iran Could Become Untouchable and Broaden its Support for Hizbullah • Saniora to Assad: Government Alone Can Monopolize Right to Negotiation

SYRIA

Political front

Geo strategic front

• Al‐Moallem Stresses Syria's Support to Sudan and condemnation of ICC's decision • President Bashar al‐Assad Receives a Verbal Message From King Abdullah of Jordan • Syria and India Sign Memo of Understanding for Establishing a Technological Excellence Center for Informatics • Normal Commercial Relations with America Conditioned by Removal of Syria's Accountability Act • Mikdad and Chief of Staff of UNTSO Discuss Cooperation between the Organization and Syria • Otri Discusses Cooperation with the Arab Health Ministers Economic front

• The 1st Edition of Economic Tishreen Weekly Kicks off • 4.250 Tons of Golan Apples received in al‐Quneitra Social front

• President al‐Assad Says that Syria has not Saved any Effort for Preserving Arabic • Otri Discusses Cooperation with the Arab Health Ministers • Sudanese Students in Damascus Condemn the ICC's Decision against al‐Bashir • Arab Solidarity Day with Arab Women labors in the Occupied Syrian Golan • President al‐Assad Meets WHO Director General and Stresses Priority Given to Health Sector

JORDAN

Political front

• Activists highlight importance of public participation in elections Geo strategic front

• Muslim Brotherhood calls for rescinding decision on charity society • Monarch sends message to Syria’s Assad • Arab commission set up to aid Gaza reconstruction • 'Arab, Palestinian unity vital’

169 • Jordan seeks no role in W. Bank’ • Germany to accept 500 Iraqi refugees from Jordan Social front

• Queen reviews Early Childhood Development strategy Economic front

• SSC to finance retirees’ small, medium projects • King: Businesspeople should unite in face of crisis • Loans grow in 2008, but banks more conservative now • ‘Banking sector safe and sound’ • ASEZ lures $14b‐worth investments

ISRAEL AND PALESTINE

Political front

• Lieberman; most likely to become Israel's new foreign minister • Lieberman may not join government due to corruption charges • Abbas asks Fayyad to resume duties until dialogue bears fruit • PM Fayyad urges President Abbas to back unity government • Mizhir: PFLP participation in unity government depends on its agenda • Hamas will not accept Fayyad as PM • Hamas says releasing its prisoners from West Bank jails important for unity talks • Rivals set to begin unity talks Geo strategic front

• Israel Closes Mauritania Embassy After Gaza Spat • Hamas delegates arrive in Egypt • Israel facing challenge of mending ties with Muslim world • ClintonIsraeli Ambassador to the US quits post • Hamas delegates arrive in Egypt • Israel facing challenge of mending ties with Muslim world • Clinton: U.S. to push for Israel‐Syria reconciliation • Israeli Ambassador to the US quits post Social front

• Dichter claims Palestinian Resistance obtained anti‐aircraft missiles

EGYPT

Political front

• Gamal Mubarak Is Egypt’s Successor, Says Cnn’s Fareed Zakaria Economic front

170 • International Report: Egyptian Cotton Production Declines by 50% Social front

• SCA Chairman: 95% of Tourists Will not Return to Egypt Geo strategic front

• Palestinian Factions Begin Unity Meeting in Cairo • Gamal Mubarak Discusses Economic Reform And Bilateral Relations On Us Visit • Egyptian Activists in the US Call For Democratic Reform • Israeli Official Holds Prisoner Swap Talks In Cairo • Egypt to Press Iraq For $2 Billion Debt • Yemeni court drops charges against Egyptian fishermen

IRAQ

Political front

Al‐Mufti says parliamentary elections to be postponed

Speaker of Iraq’s Kurdistan parliament, Adnan al‐Mufti, said that the Independent High Electoral Commission (IHEC) could postpone the parliamentary elections in the region, scheduled in May, for one or two months because of the suggested amendments on the elections law have not been completed. Speaking at a press conference at the parliament’s building, the speaker said “The IHEC could postpone the elections and we are in contact with it, despite it said it needs to three months since as of the day it received the elections law.” “Presenting the law will be delayed because of the required amendments and the demands made by ten lawmakers to adopt the open list system in the elections,” he said. “The Kurdish presidency presented several objections on the elections law in the region and suggested to give Kurds abroad the right to vote,” he continued.

Foreign troops withdrawal depends on Iraqi forces’ capabilities - VP

Iraqi Vice President Tareq al‐Hashemi said on Thursday that the withdrawal of foreign troops from Iraq depends on the ability of the Iraqi armed forces, expressing hope with the improvement in the forces’ performance, according to a statement of al‐Hashemi’s office. This came in his interview with the Azerbaijani news agency. Regarding the Turkish government’s cooperation with the federal or Kurdish governments to fight the Kurdistan Workers Party (PKK), al‐Hashemi said “it is necessary to coordinate with all parties to render all plans aimed to stop the terrorist operations on the border regions a success.”

Kirkuk behind all Kurds’ problems with Iraqi governments - Barzani

President of Iraq’s Kurdistan region, Massoud Barzani, said that the Kirkuk cause stood behind all Kurds’ problems with the Iraqi government, calling to solve it according to article 140 of the

171 constitution. In an interview with the Asharqalawsat newspaper in London within his European tour, the president said “situation in Iraq would not be stable without solving the Kirkuk cause.” Article 140 of the Iraqi constitution is related to the normalization of the situation in Kirkuk city and other disputed areas. Kurds seek to include the city in the autonomous Iraq’s Kurdistan region, while Sunni Muslims, Turkmen and Shiites oppose the incorporation. The article currently stipulates that all Arabs in Kirkuk be returned to their original locations in southern and central Iraqi areas, and formerly displaced residents returned to Kirkuk, 250 km northeast of Baghdad. The article also calls for conducting a census to be followed by a referendum to let the inhabitants decide whether they would like Kirkuk to be annexed to the autonomous Iraqi Kurdistan region or having it as an independent province. These stages were supposed to end on December 31, 2007, a deadline that was later extended to six months to end on June 30 2008.

The president had started a multi‐leg European tour on February 23 and arrived in London last Monday March 9 coming from Berlin.

Regarding the possibility to hold the next Arab summit in Kurdistan, he said “we will be glad to host such a meeting and will work to render it a success.”

Deputy premier, SRSG mull political situation after elections

Iraq’s Deputy Premier, Rafeaa al-Eissawi, received in Baghdad the Special Representative of the United Nations Secretary-General for Iraq (SRSG), Staffan de Mistura, with whom he discussed the political situation in Iraq after the local elections. “The premier asserted the Iraqi government’s support of the UN’s efforts to play a bigger role in Iraq and to implement programs to serve the Iraqi people,” said a statement of al- Eissawi’s office received by Aswat al-Iraq news agency. The statement gave no more details.Last January 31, 14 Iraqi provinces witnessed the provincial council elections, in a news experiment described by observers as successful.

Iraqi shoe attacker sentenced to 3 years in prison

A court convicted an Iraqi journalist who hurled his shoes at President George W. Bush of assaulting a foreign leader and sentenced him to three years in prison, unleashing bedlam in the courthouse that echoed the emotions the case had inspired across Iraq and the Middle East. In a case that bordered on both the farcical and poignant, Zaidi became a folk hero in the Arab world after hurling both shoes, with a mean swing, at Bush during a news conference Dec. 14. Bush nimbly ducked, in what immediately became a lasting image of the war that began when his administration ordered an invasion of Iraq in March 2003. Prosecutors had said his confession warranted his conviction, but Zaidi and his family maintained that he had been beaten and suffered electrical shocks in detention. Zaidi's lawyers argued that he was only expressing himself, without criminal intent.

Geo strategic front

172

British commander says forces accomplished Iraq mission

Major General Andy Salmon, the Commander of the Multinational Division in Basra, believes the war was worth the sacrifice of the 179 British servicemen and women who have died so far fighting in Iraq. He also believes that now is the time for the British military to return home. He believes that, with the right investment, Basra could become a major international city, like Dubai. “It’s close to Iraq’s only deep‐water port, it sits at the top of the Persian Gulf, and it has a rail link which extends to the Turkish border, so it’s knocking on the door of the EU. I’m very confident that in 10, maybe 20 years’ time, this place will be transformed – and a large part of that is down to the British troops who served here.

PM heads to Australia on Tues. for political, economic talks

Iraqi Prime Minister Nouri al‐Maliki on Tuesday will lead a high‐ranking delegation to Australia on a few day visit that aims to develop political and economic relations between the countries, according to an informed source.

“On Tuesday afternoon, Maliki will leave the country for Australia, leading a senior delegation that includes Foreign Minister Hoshyar Zibari, Trade Minister Abdelfalah al‐Sudani, Industry Minister Fawzi al‐Hariri and other officials,” a source close to the Iraqi government told Aswat al‐Iraq news agency.

Earlier today, an official government spokesperson, Ali al‐Dabbagh, said in a press conference held at Baghdad’s heavily‐fortified Green Zone that Maliki will soon visit Australia to discuss means of activating agro‐industrial and scientific cooperation, and to Russia, France and Britain in April to enhance bilateral relations.

PM lauds Australian forces’ role, urges similar efforts in reconstruction

Iraqi Prime Minister Nouri al‐Maliki said that the Australian forces had an important role in maintaining security and stability in Iraq, calling on Australia to play a similar role in reconstruction operations, according to a statement of the council of ministers. The statement quoted the premier as saying that “relations between the Iraqi and Australian government witness significant development and we hope to boost it on the parliamentary level.” He lauded the role played by the Australian forces in maintaining Iraq’s security and stability, expressing hope that the country would play the same role in reconstruction operations. “The door still open for the Australian companies to invest and work in Iraq,” he said.

173 After Iraq, more U.S. caution on preemptive attacks: Gates

U.S. presidents will likely take a more cautious approach before launching preemptive attacks after the intelligence failure of the Iraq war, U.S. Defense Secretary Robert Gates has said. “The lessons learned with the failure to find the weapons of mass destruction and some of the other things that happened will make any future president very, very cautious about launching that kind of conflict or relying on intelligence,” Gates told PBS television in an interview. Any future president is “going to ask a lot of very hard questions and I think that hurdle is much higher today than it was six or seven years ago,” he said. In the run‐up to the 2003 U.S.‐led invasion of Iraq, the Bush administration argued the regime’s alleged weapons of mass destruction posed an imminent threat. But no WMD stockpiles were ever found,” the BBC said. “I think one of the biggest lessons learned in this, is if you are going to contemplate preempting an attack, you had better be very confident of the intelligence that you have,” he said. He said there was no link between recent armed attacks in Iraq and Obama’s decision last month to withdraw most combat troops out of Iraq by the end of August, 2010.

Arab League chief to visit Baghdad next week

The secretary‐general of the Arab League, Amr Moussa, will pay a visit to Baghdad next week, where he will hold talks with senior Iraqi officials, according to a statement of the Kuwaiti information ministry. “Moussa will visit Baghdad nest week and will discuss several issues, including activating the joint Arab action in its effort to rehabilitate the Iraqi institutions and following up the national reconciliation efforts,” said the statement received by Aswat al‐Iraq news agency. “The Arab League chief will also discuss economic topics during his visit,” it added.

Economic front

Ministry relies on state‐run engineering firm to boost oil exports

The Ministry of Oil is contracting state‐owned firms to upgrade producing oil fields and facilities to increase output, a ministry statement said. The state‐run company for heavy engineering industries has won contracts worth more than $250 million to repair gas‐separating units at the Rumaila fields in the south. The company, Iraq's best engineering unit, has long experience in the manufacturing and repair of oil installations and was the former regime's engineering arm that kept the oil industry running despite U.N. trade sanctions. The contracts come as Oil Minister Hussain Shahristani says Iraq is seeking ways to accelerate oil output. The government had to slash its 2009 budget by billions of dollars due to sharp drops in oil prices in the past few months.

174 Iraqi­Egyptian committee agrees to boost economic cooperation

The joint Iraqi-Egyptian committee concluded its meeting at the Egyptian foreign ministry building by drafting a group of memorandum of understandings and agreeing to support cooperation in various domains. “Representatives of more than 20 governmental institutions took part in the committee’s work to discuss means to develop and strengthen ties,” the daily said. “The meeting is a preparatory step of the first meeting of the committee under the foreign ministers of the two countries,” it added. “The meeting was attended by a high-level delegation, including 35 officials headed by Undersecretary of foreign Affairs, Ambassador Labied Abbawi,” it reported.

Lebanese firm to construct 15 thousand residential units in Karbala

Karbala’s investment commission signed a Memorandum of Understanding (MoU) to construct 15 thousand residential units to the west of Karbala city, said the commission’s spokesperson. “The project will be finalized within around 5 years,” Ahmed al-Asali told. “The units’ areas will vary between 100 to 300 squared meters,” he said. Al-Asali did not mention how much the project would cost.

Iraqi, Australian premiers sign 6 MoUs

Iraqi Prime Minister Nouri al‐Maliki signed with his Australian counterpart Kevin Rudd on Thursday six memorandums of understanding in different fields of cooperation, according to a cabinet release. “The MoUs, focusing on cooperation in the domains of agriculture, trade, security, resources, energy, training and research & development, will be implemented during June 2009 at the most,” read the release as received by Aswat al‐Iraq news agency. Maliki had arrived in Australia on an official visit, leading a high‐ranking delegation comprising Foreign Minister Hoshyar Zebari, Trade Minister Abdulfalah al‐Sudani, Industry Minister Fawzi al‐Hariri and other Iraqi officials.

VP discusses with UAE amb. Economic ties

Iraqi Vice President Adel Abdul Mahdi discussed with UAE ambassador to Iraq facilitating Iraqis’ entry into the UAE and the development of economic ties between the two countries. “The vice president met with UAE ambassador in Baghdad, Abdullah al‐Shehi, (March 10) and discussed with him ways of facilitating Iraqis’ entry into the UAE and to boost the economic ties between the two countries,” said a statement released from Mahdi’s office. The United Arab Emirates (UAE) had sent its ambassador to Iraq last July 9, when Vice President Tareq al‐Hashemi received a copy of credentials of Ambassador Abdullah Ibrahim Abdullah.

Deputy premier, Russian envoy take up economy, trade

175 Deputy Prime Minister Rafie al‐Issawi discussed with the Russian ambassador to Iraq means of expanding economic and trade cooperation between the two countries. “The two officials discussed several issues of mutual concern, the most important of which is ways to expand economic, trade and service cooperation between Baghdad and Moscow in a way that boosts good relations between the governments of Iraq and Russia and serves the interests of the people of both countries,” according to a statement released by Issawi’s office.

Social front

Iraqi marshlands in danger once again

Thousands of families are fleeing the southern marshlands as water levels are receding at an alarming rated. The disaster this time is due to declining volume of water the rivers Tigris and Euphrates discharge into the wetlands. An Iraqi government official in the Province of Missan said at least 500 marsh Arab families have abandoned their villages in the district of al‐Jebayesh.

But when the authorities removed the dams and the sluices the regime had used to drain the area, it was reported that nearly 50% of the dried marshland was restored.

"In the past two years we have seen a drastic drop in the volume of water turning large swathes of wetlands into desert," Balad said. He said many more families were expected to flee and scores of more villages would be abandoned as there were no signs of any improvement in the volume of water in the future. The families now live in shanty towns and the authorities find it hard to cater for them, he said.

Government officials surrender 531 artifacts to Iraq Museum, among them gold and silver coins

The Iraq Museum has received 531 archeological pieces which were in the possession of senior government officials. The pieces were handed over to the Minister of Tourism and Antiquities Qahtan al‐Jibouri who in turn gave them to the Iraq Museum, according to the ministry's spokesman Abdulzahara al‐Talaqani. Talaqani said the first batch comprising a magnificent collection of numismatic coins was returned to the museum by Minister of National Security Shirwan al‐Waili. This batch included 366 gold and silver coins of various colors, Talaqani said. He said the second batch of 165 artifacts was kept by two members of parliament and included

176 mainly statues and cylinder seals. Talaqani said Iraqi scientists who have examined both collections have said they were of astounding beauty and great value. One magnificent piece, he said, was a pottery statue of a standing woman holding a beaker made of glass. It is the first time senior government officials are reported to have been in possession of so many artifacts. The officials say the pieces were passed to them by ordinary people.

Under a new law in Iraq holders of ancient relics whether stolen or dug up illegally cannot be prosecuted if they choose to hand them over to the authorities willingly.

In fact, the law makes it incumbent on the authorities to compensate and reward anyone returning antiquities by their free will.

Urgent / Iraq’s court upholds death sentence against 2 officials

The Iraqi Supreme Criminal Court handed down a death sentence to Watban Ibrahim al- Hassan and Sabaawi Ibrahim al-Hassan and upheld life sentence against Abdul Hamid Mahmoud in the Merchants execution case (1992). The court, presided by Justice Raouf Abdul-Rahman Rasheed, sentenced also Tareq Aziz, Ali Hassan al-Majid and Mezban Khedr Hadi to 15 years behind bars, while it sentenced Ahmad Hassan Haqi to six years behind bars. The court found Issam Rashid Houweish not guilty and released him. In 1992, Saddam Hussein ordered the execution of 40 Iraqi merchants, accusing them of destroying the national economy aggravated due to sanctions imposed on Iraq by the international community after the former regime invaded Kuwait in 1990. There are eight defendants in this case: who were members of the dissolved Baath party regional leadership in Iraq, Abdul Hamid Mahmoud, the presidency secretary, Ahmad Hussein Khudier, former finance minister, and Issam Rashid Houweish, governor of the Iraqi Central Baghdad between 1994 and 2003.

Red Cross says millions of women-headed families in Iraq

An estimated one to three million families in Iraq are supported by women who have lost their father or husband due to conflicts and wars, the International Committee of the Red Cross (ICRC) said in a report. “It was women who suffered most from the conflicts… Being a patriarchal society, Iraqi society has made it difficult for women to live without a man. Without a male relative, (Iraqi) women lack security and economic, financial and social support,” read the report. “Thousands of men have gone missing throughout the past decades, leaving behind wives and children to suffer…,” it added. According to the report, most of women-supported families in Iraq live in abject poverty with an average income of $125 U.S. dollars.

Iraqi press syndicate appeals to Talabani, Maliki to release Zaydi

177 The Iraqi journalists’ syndicate appealed to Iraqi President Jalal Talabani and Prime Minister Nouri al‐Maliki to release al‐Baghdadia channel correspondent Muntadhar al‐Zaydi, who was sentenced to three years in jail for throwing his shoes at former U.S. President George W. Bush. “While the syndicate respects the Iraqi judiciary’s decision and impartiality, it appeals for President Talabani and Prime Minister Maliki to show a fatherly mercy to colleague Zaydi,” read a syndicate release received by Aswat al‐Iraq news agency. Talabani and Maliki “are known for sublime and noble stands marked by pardon and tolerance. Hence, the syndicate hopes the president and prime minister should reconsider the imprisonment term and release Zaydi,” the syndicate added.

LEBANON

Political front

Hezbollah, Amal criticize Lebanon's judicial appointments

Hezbollah and Amal Movement criticized the top judicial appointments, which has been approved by President Michel Suleiman. While Hezbollah claimed the reshuffle has been "politicized," AMAL Movement official Ali Bazzi said that "it seems not all issues are agreed upon through consensus." It said the decision has "caused damage to human interests as well as to the principle of justice." Bazzi, in turn, said: "We were not informed about the reshuffle in the first place." "It seems that not all issues are agreed upon through consensus regardless of our opinion on this reshuffle," Bazzi said, adding that AMAL Movement has "some reservations on the details" of the appointments. Local media has said that the decree was issued after unanimity was reached among members of the Higher Judicial Council. But As Safir daily said several Council members had reservations about the names of some judges. According to observers , the Hezbollah led opposition considered the appointment of Judge Saqr Saqr , government commissioner of the military tribunal as a "reward" for not releasing from jail the four pro-Syrian generals accused of involvement in the murder of former PM Rafik Hariri

Lebanon's top three leaders broker deal on state budget

Lebanon's three top officials met in a bid to solve controversies surrounding the country's state budget which has yet to be ratified. President Michel Sleiman, Speaker Nabih Berri and Prime Minister Fouad Siniora held talks at Baabda Palace Wednesday evening and managed to broker a deal on the state budget, a well-informed ministerial source told

178 "The deal reached with regards to the budget satisfies all groups," the source added. Talks in Baabda were followed by a dinner, where the three top officials discussed recent developments on the Lebanese political scene. Describing Lebanese-Syrian ties as "excellent," Sleiman said in an interview with Qatari daily Ash-Sharq published on Wednesday, that after the June 7 parliamentary polls more efforts would be exerted to normalize ties with Syria. Discussing the issue of the centrist bloc, Sleiman said he did not support any candidates for the spring elections and was not in need of his own parliamentary bloc. "This does not mean I reject independent candidates," he added. Sleiman said that the cooperation between the Lebanese Armed Forces and the Resistance throughout the years was an example of what Lebanon's defense strategy should be. In other news, a visit to France by Sleiman on March 16-18 is intended to send a "message of confidence" to Lebanon. The sources said choosing the time of the visit ahead of the June 7 parliamentary polls in Lebanon "carries a French message of faith in Lebanon and its democracy." It is also a message to encourage Lebanon to restore its full role, the sources added. Separately, the opposition's top four leaders are expected to meet in the "next few hours to continue deliberations on the upcoming legislative elections," The Central News Agency (CNA) reported on Wednesday. It quoted sources from the opposition as saying the leaders would "place the final touches on the distribution of seats among the minority."

In other elections-related news, the March 14 Forces announced Wednesday the alliance would hold its second annual conference on March 14, 2009.

During a news conference Wednesday, MP Fares Soueid said the conference entitled "June 7: The Day the State Starts," would launch the electoral agenda and the alliance's campaign, adding that this was the first time that several Lebanese political forces run in the elections with one agenda and on unified lists. Media reports had said March 14 Forces would not announce their list of candidates during their second annual convention. the Lebanese Forces leader said any attempt for an Arab reconciliation must not neglect core issues such as cross-border weapons smuggling from Syria, the demarcation of Lebanese-Syrian borders and the armament of Palestinian refugee camps. Geagea's remarks coincided with a mini-Arab summit in Saudi Arabia between King Abdullah, Syrian President Bashar Assad and Egypt's President Hosni Mubarak, in the latest sign of Saudi-Syrian thaw in frosty ties. While assuring Kuwait's emir of his support to Arab rapprochement, Geagea advised against neglecting issues that touch upon Lebanon's sovereignty. Geagea criticized the disenchantment of "some Arab sides" with the Special Tribunal for Lebanon, set up to try the suspected killers of former Lebanese Prime Minister Rafik Hariri. He asked "how can we even speak of reconciliation when there is an Arab country that still refuses to demarcate its borders with Lebanon and refuses to release the hundreds of Lebanese prisoners in its jails?"

Michel Murr: Aoun Is Main Symbol of Alliance With Syrian Regime

MP Michel Murr said that Free Patriotic Movement leader Michel Aoun is "now a main symbol of alliance with the Syrian regime." "I'm neither close to March 14 (coalition) nor far from it.

179 Besides, I'm neither close to March 8 (alliance) nor far from it," Murr said in a live TV interview with late‐night political talk show Kalam el‐Nass aired by LBCI. He added that if his ticket won election, all MPs on his list would nominate Nabih Berri as parliament speaker and Saad Hariri as prime minister "because both men have patriotic positions." Murr said that his nomination at the Metn region aims to form a parliamentary bloc that would stand between both March 8 and 14 Forces at the legislature and seek to keep them from hindering government. He said President Michel Suleiman has nothing to do with the centrist bloc, but added that if this bloc were to back the president, Suleiman wouldn't object. He said he quit his alliance with the FPM because the party made no achievements over the past four years. He denied reports that his son, Defense Minister Elias Murr, had carried a message to him from Syrian officials during his recent visit to Damascus. "But he carried greetings from some (Syrian) officials to me." Murr said that he won't visit Damascus at this moment because Syrian officials are not interfering with the Lebanese legislative elections.

Economic front

Social front

Geo strategic front

US envoy: Dialogue with Syria not at Lebanon's expense

The United States sought to reassure Lebanon that its efforts to repair relations with that country's long-dominant neighbor, Syria, do not pose a threat. President Barack Obama is sending a senior U.S. diplomat and a White House official to Syria to evaluate the chances of opening a dialogue with the country, which former President George W. Bush had sought to isolate. That makes some politicians in Lebanon wary. In recent years, the country has succeeded in breaking away from nearly three decades of political and military domination by Syria, a break driven in large part by suspicions that Syria was behind the assassination of a former prime minister in Beirut in 2005. Syria denies any role in the killing. The two U.S. officials stopped in Beirut Friday to stress that the Obama administration stood beside Lebanon, whose pro-Western parliamentary majority has looked to America for support in its standoff with political rivals allied with Syria. The State Department's top envoy on the Middle East, Jeffrey Feltman, told a news conference that the visit was "to tell Lebanese officials, to tell the Lebanese people on behalf of President Obama's new administration in Washington that U.S. support for Lebanon will continue, that the U.S. strongly backs Lebanon's independence and sovereignty." By engaging Syria, Washington wants to try to persuade it to end its support for Hamas and Hezbollah militants and to pull it away from its alliance with Iran. It also wants Syria to stop what Washington calls its interference in Lebanese affairs. For its part, Syria is looking for U.S. help in starting up direct peace talks with Israel aimed at

180 winning the return of the Golan Heights, which Israel captured in the 1967 Mideast war. The U.S. withdrew its ambassador from Damascus, and anti-Syrian protests in Beirut as well as pressure from the U.S. and other nations forced Damascus to withdraw its army from Lebanon. That effectively ended Syria's 29-year dominance of its smaller Arab neighbor. The Bush administration regularly accused Syria of seeking to destabilize Lebanon and sought to isolate it. The Obama administration is seeking a different approach through dialogue.

Feltman told Syria: Unity government is a Lebanese issue

Damascus has reportedly told U.S. Acting Assistant Secretary of State for Near Eastern Affairs Jeffrey Feltman that it wants a national unity government following Lebanese elections. Feltman replied: This is a Lebanese issue. Al Hayat newspaper quoted high- ranking political sources as saying that Damascus "took the initiative" to discuss Lebanon during weekend talks with Feltman and fellow envoy Daniel Shapiro. The sources said Syrian officials conveyed to the U.S. delegation their country's keenness on holding Lebanese parliamentary elections on time. This was okay. But when it came to renewing their call for the establishment of a Lebanese national unity government following the June 7 elections, Feltman allegedly told the Syrian officials: "This is a Lebanese issue." The sources said the U.S. delegation discussed with Syrian officials the "principles of holding elections without Syrian meddling, not more." They said Hezbollah and Amal Movement leaders have recently been emphasizing the formation of a national unity government following Lebanese elections. Feltman and Shapiro held four hours of talks with Syrian Foreign Minister Walid al-Muallem and other officials. Feltman said he and Shapiro held the "view that Syria can play an important and constructive role in the region," in a conference call with reporters in Washington after talks with Mouallem and other Syrian officials.

Signs of U.S. Discontent Over British Contact with Hizbullah

A senior U.S. official said he was unhappy with a British decision to open low‐level contact with Hizbullah and suggested London only indirectly informed the new administration ahead of time.The remarks contrasted with those last week from the State Department which said U.S. officials had been informed about the move in advance and gave no sign of displeasure ‐‐ even if Washington was not ready to follow London's lead. The senior U.S. government official, speaking on the condition of anonymity to a group of journalists in Washington, clearly expressed discomfort with the British decision. He said he would like the British to explain to him "the difference between the political, military and social wings of Hizbullah because we don't see a difference between the integrated leadership that they see." In London, British Foreign Secretary David Miliband said March 6 that Britain had authorized low‐level contact with the political wing of Hizbullah to stress the urgency of disbanding militias.The U.S. government official, when asked if London consulted Washington ahead of time, replied: "I would say informed under a previous administration is a more

181 accurate description." He was apparently referring to the administration of President George Bush, which was succeeded January 20 by that of President Barack Obama. The official also objected to the glorification in the Hizbullah stronghold of south Beirut of Imad Mughniyeh, the Hizbullah military commander who was killed in a Damascus car bombing in Feb. 2008 that the movement blamed on Israel. When a journalist suggested he did not sound happy with the British decision, he replied: "No." Last week, Gordon Duguid, a State Department spokesman said "we are not ready to take the same step" that the British took, declining to either praise or criticize it. However, the Obama administration, which has talked about engaging states hostile to the United States, seemed interested in the results of the British contacts with Hizbullah when Duguid said "we will watch how that proceeds." And in sharp contrast to the senior government official, a State Department official told reporters on the condition of anonymity last week that Washington envisioned possible benefits from the British decision.

Jumblat: Lebanon Still Requires 'Stabilization' and Keeps to Dialogue with Berri

Democratic Gathering leader Walid Jumblat said that the improving political climate in Lebanon still requires "stabilization and fortification" and called for more dialogue among the Lebanese. The political atmosphere "needs additional effort for its stabilization and fortification," the head of the Progressive Socialist Party told As‐Safir daily in remarks published Friday. Jumblat also said he was pleased with the meeting between Prime Minister Fouad Saniora and Speaker Nabih Berri at Baabda Palace on Wednesday. Concerning his own talks with Berri, Jumblat told An‐ Nahar newspaper that he considered Lebanon's Shiites to be "partners."He also continued to praise regional developments by saying "the atmosphere that the Arab region has witnessed concerning the reconciliations is a positive thing," adding that "they should reflect positively on Lebanon."

Russian Expert: Iran Could Become Untouchable and Broaden its Support for Hizbullah

A Russian strategic arms control expert said Thursday that Iran could produce an atomic weapon in "one or two years," allowing Tehran to broaden its support for Hamas and Hizbullah. Officially, Russian diplomats have downplayed U.S. and Israeli fears that Iran is on the verge of building an atomic weapon, while Moscow has resisted calls for tougher sanctions on Tehran for its disputed nuclear program. Russia has also been helping Iran build a civilian nuclear power plant even as Western governments have expressed concern that Tehran's uranium‐enrichment program is aimed at building material for a bomb. Moscow has also however pointed out that Iran is geographically closer to Russia than to any Western country and has maintained that it is opposed to any effort by Tehran to obtain nuclear weapons.

182 Saniora to Assad: Government Alone Can Monopolize Right to Negotiation

Prime Minister Fouad Saniora hit back at Syrian President Bashar al‐Assad for considering including Hizbullah in a peace process with Israel. Saniora's remarks came during Thursday night's Cabinet meeting. In a recent interview, Assad emphasized the importance of including major parties in a peace process with Israel, adding that he would work to bring Hamas and Hizbullah to the table.The daily As Safir on Friday said Assad's statement was discussed during Cabinet's meeting. It quoted Finance Minister Mohammed Shatah as requesting inquiry into the issue.

SYRIA

Political front

Geo strategic front

Al‐Moallem Stresses Syria's Support to Sudan and condemnation of ICC's decision

Foreign Minister Walid al‐Moallem discussed on Thursday with Sudanese Ambassador in Damascus Abdul Rahman Dirar bilateral relations between the two countries and means of enhancing them. During the meeting, Minister al‐Moallem asserted Syria's support to Sudan, as leadership and people, in the aftermath of the International Criminal Court's decision, renewing Syria's condemnation of the decision as being a blatant violation of Sudanese sovereignty and a flagrant interference in its internal affairs. For his part, the Sudanese Ambassador appreciaited Syria's support to his country, hailing the Syrian diplomacy that is working with Sudan in full confidence. "The meeting with Minister al‐Moallem comes in the framework of the continuous consultation between Syria and Sudan, where the situation in Sudan was discussed," the Sudanese Ambassador said in statement. Ambassador Dirar voiced his appreciation for the stances of Syria and brotherly Arab countries in support of Sudan. "We, in Sudan, appreciate and are exactly aware of Syria's role in that it proposed the Arab initiative being applied now to reach peace in Darfur." He added that the Syrian diplomacy is moving by our side and working with Sudan in all directions. The Ambassador concluded by saying that Sudan relies on its Arab and regional countries in confronting the challenges imposed by other sides in an attempt to realize the scheme of dividing Sudan after situation calmed down in the south upon signing peace agreement .

President Bashar al‐Assad Receives a Verbal Message From King Abdullah of Jordan

183 President Bashar al‐Assad received this afternoon a verbal message from King of Jordan , Abdullah II , connected with the latest developments in the region , and with the development of bilateral relations on all levels in the interests of the peoples of both countries. The message was conveyed by Chief of the Jordanian Royal Court , Nasser alLawzi. Talks during the meeting dealt with the situation on the Arab arena in the light of the prevailing positive atmosphere with the approaching date of the convention of the forthcoming Arab summit in Doha, the situation on the Palestinian arena, and ways of boosting the Palestinian reconciliation. In this connection President al‐Assad stressed the necessity for the continuation of supporting the Palestinian people and of standing at the same distance from all the Palestinians , urging them to consolidate reconciliation in order to strengthening their position on the international arena. The president also stressed the necessity for moving up the level of Arab‐Arab relations , and for reaching agreement on the details and terms and good preparation of Doha Summit in order to unify the Arab position which protects the Arabs interests and rights. The meeting was attended by Jordanian Foreign Minister, Nasser Joudeh , Foreign Minister, Walid Moalem , Presidential Political and Media Advisor, Butheina Sahaaban, and Deputy Foreign Minister, Fayssal Mikdad.

Syria and India Sign Memo of Understanding for Establishing a Technological Excellence Center for Informatics

The Syrian Ministry of Communications and Technology and the Indian government signed a memo of understanding for establishing a technological excellence center for informatics in Syria. Minister of Communications and Technology Dr. Imad Sabouni pointed out that the center will be established at the Ministry's training center, stressing that training and rehabilitation are among the Syrian government's priorities, particularly in the fields of informatics and communications technology. The Minister underlined the fields of cooperation between Syria and India in information and communications technology, including the establishing of a web services center similar to the National Informatics Center in India, and cooperation in remote sensing, training and rehabilitation, and encouraging cooperation between the private sectors in Syria and India. For his part, India's Ambassador in Damascus V. P. Haran pointed out that what Syria requires at this stage is training and rehabilitation, which is why the excellence center will be established. He noted that the major technological leap in India that occurred in a short time which made its technology‐based exports to exceed USD 50 billion was mainly due to the reliance on the private sector, allowing for establishing infrastructure for technological establishments that produce highly qualified cadres. The memo stipulates for establishing a training center for communications and informatics technology and providing curriculums for training 500‐600 students each year for two years.

184 Normal Commercial Relations with America Conditioned by Removal of Syria's Accountability Act

Minister of Economy and Trade Amer Hosni Lutfi has stressed that it is too early to say that we will enter good economic partnerships or relations with the United States. In a statement to Tishreen Economic Weekly Monday to be published in its forthcoming issue, Lutfi said that "the US new President and administration stated that they wish to conduct dialogue with Syria but this dialogue has not begun yet and to talk about normal commercial partnerships and economic relations with the United States, the Syria's Accountability Act should be removed first. He added " as President Bashar al‐Assad said peace is Syria's strategic option and we are opened to dialogue and negotiations so let us listen to each other and negotiate with each other until we reach a normal and balanced situation in the region". He pointed out that Syria sent messages to the US but it is early to talk about the United State as a normal partner.

Mikdad and Chief of Staff of UNTSO Discuss Cooperation between the Organization and Syria

Deputy Foreign Minister Fayssal Mikdad and Chief of Staff of United Nations Truce Supervision Organization (UNTSO), Major‐ General Robert Mood discussed Thursday the organization work and its role in the framework of the mission it undertakes and cooperation between it and the Syrian competent authorities.

During the meeting, Mikdad stressed the importance of the organization work, and Syria's continuous support to it, calling on international community to press Israel to end its occupation and return rights to its owners. For his part, General Mood praised cooperation of Syria and its support to the organization to fulfill its work perfectly.

Otri Discusses Cooperation with the Arab Health Ministers

Prime Minister , Mohammed Naji Otri met with Arab Health Ministers participant in the 33rd Session of the Arab Health Ministers Council which is being held in Damascus. Discussion focused , during the meeting ,on ways of cooperation in the health sphere and on exchanging expertise and experiences on medical care level and issues of reproduction , and reaching harmony between the population growth , and socio‐economic development. During the meeting , Otri reviewed the indicators of health development in Syria , and the state plans and programs in building hospitals , and medical centers. Otri was briefed by Housami and his

185 counterparts on the topics so far discussed , and the approaches that have been adopted by the council with regard to health specializations and the requirements of good quality , food and medicine safety.

Economic front

The 1st Edition of Economic Tishreen Weekly Kicks off

Today, Minister of Information , Mohsen Bilal, inaugurated the issuance of 1st edition of specialized Tishreen Economic Weekly published by al‐Wahda Press and Publishing Foundation . In his address at the ceremony, Minister Bilal stressed the necessity of cooperation in order to produce the weekly in the required form and so to objectively convey the most important economic and developmental changes that Syria witnesses and also to shed light on various economic issues . For his part, Minister of Trade and Economy, Amer Mohsen Lutfi , underlined the importance of publishing such an economic weekly specialized in public sector having qualified cadres to convey reality , economic developments and economic experts' opinions and criticisms professionally and scientifically based on numbers and documents . Chairman of State Planning Commission, Tayseer al‐Radawi expressed hope that the weekly will be a means to shed light on economic life with its various fields and the impact of economic changes and its reflexives on social life . Tishreen's Editor‐in‐chief , Samira Musalemah said that Economic Tishreen is a specialized weekly aims at being a podium for specialized researchers in economic affair and a means to convey the opinions of those interested in economic changes, its reflexives on economic and social life in addition to its influence on economic decisions. She also drew attention that 70 thousand editions will be weekly published.

4.250 Tons of Golan Apples received in al‐Quneitra

General Establishment for Storage and Marketing received more than 4.250 tons of Golan apples via the International Committee of Red Cross. The Establishment will also receive Golan apples to reach the quantity of 8.000 tons, taking into consideration that the process of receiving Golan apples started on Feb.17, 2009.

Social front

186

President al‐Assad Says that Syria has not Saved any Effort for Preserving Arabic

President , Bashar al‐Assad has stressed that Syria has not and will not save any effort for the sake of preserving , supporting and attention given the Arabic language because it preserves history , heritage, culture , and the Arab identity. During his meeting this afternoon with a delegation representing Arab League Health Sciences Arabization Center, headed by Secretary General of the center, Abdul‐Rahman Awadi, the president reviewed the agenda of the 33rd session of the Arab Health Ministers Council which is scheduled to be held in Damascus the day after tomorrow and the efforts which are being exerted by the center with regard to the Arabization of medical teaching terms at all Arab universities. The delegation called on President al‐Assad , in his capacity as President of the Arab Summit , to present the issue of Arabization of medical teaching at the forthcoming Arab summit for the issuance of the necessary decision to start the application of Arabization at all the Arab Medicine faculties , particularly that President al‐Assad called on during Damascus Summit for the necessity to pay attention to Arabic .

Syria also proposed a project to upgrade Arabic during the summit and was adopted by all the Arab countries in addition to Syria's leading role in teaching medicine in Arabic at the Syrian universities.

Otri Discusses Cooperation with the Arab Health Ministers

Prime Minister , Mohammed Naji Otri met on Thursday with Arab Health Ministers participant in the 33rd Session of the Arab Health Ministers Council which is being held in Damascus. Discussion focused , during the meeting ,on ways of cooperation in the health sphere and on exchanging expertise and experiences on medical care level and issues of reproduction , and reaching harmony between the population growth , and socio‐economic development. During the meeting , Otri reviewed the indicators of health development in Syria , and the state plans and programs in building hospitals , and medical centers. Otri was briefed by Housami and his counterparts on the topics so far discussed , and the approaches that have been adopted by the council with regard to health specializations and the requirements of good quality , food and medicine safety.

Sudanese Students in Damascus Condemn the ICC's Decision against al‐Bashir

187 Sudanese students in Damascus on Wednesday condemned the International Criminal Court's decision against President Omar Hassan al‐Bashir, expressing their rejection of this decision which is considered a violation of the sovereignty of law and uncovers the double‐standards policy among countries. In a mass rally held at the Youth City Wednesday, speeches stressed unity, coherence and rejection of that decision which targets the unity of Sudan. Sudanese students' representative Areej Awad said, "The ICC basically aims at damaging our national unity and fragmenting Sudan."

Arab Solidarity Day with Arab Women labors in the Occupied Syrian Golan

The Committee of Arab Women Workers held a solidarity day with women in the Occupied Syrian Golan. Chairwoman of the Committee, Safa Maqsoud praised the Arab woman's steadfastness and struggle against the Israeli occupation and her adherence to the Arab identity. Chairwoman of the Yemeni Woman Worker Committee, Najat Mahmoud Mohammed expressed her confidence in Syria's ability to restore all its lands and usurped rights.

President al‐Assad Meets WHO Director General and Stresses Priority Given to Health Sector

President Bashar al‐Assad's meeting this morning with World Health Organization(WHO) Director General , Margaret Chan, focused on aspects of cooperation between Syria and the WHO and on what has been carried out of joint programs. The president stressed Syria's big attention given to the health sector, seeking to upgrade the health reality all over the country, and looking forward for more cooperation with the specialized international organizations in this regard.

For her part, Chan expressed happiness for what she touched of attention and improvement of the health situation in Syria , stressing that Syria has a serious will to achieve a distinguished health system. Dr. Chan affirmed that Syria is on the right path for developing its health system, stressing that Syria has the will for achieving this. She expressed satisfaction over the activities in Syria that reflect interest in the health sector, combating contagious diseases and smoking, and providing healthcare to all members of the society. She also expressed happiness for participating in the regional campaign for combating tuberculosis (the Million Youths March) in Damascus on Wednesday to increase awareness of the dangers of tuberculosis and curb it. Dr. Chan also discussed with Prime Minister Mohammad Naji Ottri cooperation between the WHO and Syrian health authorities and the possibility of exchanging expertise among them regarding

188 awareness, preventive health, reproductive health, pharmaceutical industries, and food safety. During a tour of the Strategic Health Studies Center, Dr. Chan said she discussed during her meetings with Syrian officials issues of women empowerment, combating smoking particularly among youths, manufacturing pharmaceuticals in Syria, developing health sectors and hospital, and providing healthcare services to all members of the community. In turn, Minister of Health Dr. Maher al‐Hussami pointed out that Dr. Chan's visit to Syria aims to review the work of the Ministry of Health regarding plans, projects and programs being carried out in cooperation with the WHO. He added that directors of cooperation programs at his Ministry and the WHO will review the results of these plans and strategies within the framework of the 10th five‐year plan. Dr. Raghad Takkidin of the Strategic Health Studies Center gave a presentation on the Center's work, pointing out that it provides training and rehabilitation, prepares studies and consultations, in addition to providing advanced talents. The Center also offers a number of Master's studies and courses.

JORDAN

Political front

Activists highlight importance of public participation in elections

Human rights activists highlighted the importance of public participation in elections as a key element in the political development process and a primary contributor to human rights. They made the remarks at the opening of the 5th Conference of National Human Rights Institutions (NHRI) in the Arab Region titled, "Elections in the Arab Region and their Impact on Human Rights", organised by the National Human Rights Centre (NHRC) in cooperation with the Office of the High Commissioner for Human Rights (OHCHR) in Geneva. Participants from across the region will discuss electoral legislation in the Arab world, “as it constitutes a major contributor in achieving democracy and overcoming problems and difficulties sustained by Arab communities due to current socio‐economic and political situations", NHRC Chairman Adnan Badran said at the conference. He said free elections are one of the most important legitimate means through which the public can practise their constitutional rights in selecting their representatives, highlighting that the future of democracy in the Arab world requires genuine popular participation in policy‐making decisions. Delegations from 16 Arab countries are taking part in the two‐day event in addition to representatives of several international and regional human rights organisations. Boutros Boutros‐Ghali, former UN secretary general and chairman of the Egyptian National Human Rights Council, said the meeting is an opportunity for participants to

189 exchange ideas on means to enlighten local communities on the importance of participating in free elections. Underscoring the importance of civil society institutions and media outlets in monitoring and supervising the electoral process, he highlighted the importance of equal opportunities as key to carrying out free elections. For his part, OHCHR Senior Human Rights Officer Gianni Magazzeni said the relevance of discussions on elections and strengthening the culture of democracy in Arab societies are even more timely today as the world celebrates International Women’s Day.

Geo strategic front

Muslim Brotherhood calls for rescinding decision on charity society

The Muslim Brotherhood called on human rights groups to pressure the government to rescind a 2006 decision to take over its Islamic Centre Charity Society. During a press conference yesterday, the Islamist group said the decision to dissolve the society's board of directors and appoint a government‐affiliated administrative body was meant to "drain its financial resources". In 2006, the Ministry of Social Development appointed a seven‐member ad hoc board to run the charity following a decision by the Amman prosecutor general to dissolve its administration on suspicion of fraud. In July that year, the government referred the charity’s file to the prosecutor’s office for legal action after a joint committee comprising officials from the Audit Bureau and the Social Development Ministry reportedly found discrepancies in the society’s records. In its report, the panel detailed “violations, reservations and comments”, on the financial performance of the society. But almost two years later, no one from the charity has been referred to court on related violations and its financial situation proved to be sound, according to Abdul Majid Thneibat, deputy president of the Muslim Brotherhood’s shura council, who cited a recent Audit Bureau report. The Islamist leaders called on civil society, particularly the National Centre for Human Rights, "to shoulder its responsibility and carry out its duty of protecting the rights of national institutions and basic rights granted by the Constitution".

Monarch sends message to Syria’s Assad

His Majesty King Abdullah on Tuesday sent a verbal message to Syrian President Bashar Assad concerning means to boost bilateral ties and the latest developments in the region, the Jordan

190 News Agency, Petra, reported. The message was delivered to Assad by Royal Court Chief Nasser Lozi, who, along with Foreign Minister Nasser Judeh, met with the Syrian president. The meeting was attended by Syrian Foreign Minister Walid Mouallem. In a statement to Jordan Television, Judeh said that the message focused on ways to boost relations between the two countries and to achieve Arab solidarity before the Doha summit at the end of this month. Judeh added that they discussed the current challenges in the region and the importance of a unified Arab stance. The top diplomat noted that both countries agree on many issues, particularly achieving a just and comprehensive peace settlement. Meanwhile, the Syrian presidential spokesperson said that Lozi conveyed to Assad an invitation from King Abdullah to visit the Kingdom, adding that the president promised to visit Jordan at the earliest opportunity.

Arab commission set up to aid Gaza reconstruction

Jordan Engineers Association (JEA) President Wael Saqqa said efforts are ongoing to help in the reconstruction of Gaza following the establishment of an Arab commission.

Saqqa was appointed as president of the commission which will establish a special fund to provide financial support to projects for rebuilding the war‐torn city. In a statement sent to The Jordan Times, the JEA president said he was confident popular efforts will help put the city back on its feet, noting that the commission will decide priority projects according to needs of Gazans and offer its suggestions during an upcoming reconstruction conference. Gaza was subjected to a 22‐day offensive by Israel in January, which killed 1,330 and injured thousands. The city’s infrastructure, including hospitals, schools and thousands of homes were completely destroyed by the onslaught. He said rebuilding Gaza is a daunting task under the current political conditions and the siege on the coastal enclave, calling on activists to exert all "efforts to lift the city from its current doldrums". Following the end of the Israeli aggression, Jordanian activists stepped up efforts to help rebuild Gaza, but their efforts were hampered by political obstacles, including the siege on Gaza. The JEA president said the commission will adopt a number of measures and launch an aggressive media campaign to collect as many donations as possible. Campaigns conducted by the association and the Islamist movement continue with the public giving cash and medical aid for the city, which is still reeling under the consequence of the attacks.

'Arab, Palestinian unity vital’

His Majesty King Abdullah and Egyptian President Hosni Mubarak underlined the need to realise Arab solidarity to serve broader Arab interests and deal with common challenges. At a bilateral

191 meeting in Aqaba, the two leaders agreed to continue coordination and consultation to foster joint Arab work and develop unified stances to address challenges the Arab nation faces, a Royal Court statement said. During a lunch banquet the King held in honour of Mubarak and the accompanying delegation, the Egyptian president briefed the Monarch on Egypt's efforts to realise Palestinian national reconciliation through dialogue involving different Palestinian groups which was recently launched in Cairo. The two leaders said such concord serves the Palestinian cause, which is “the core issue in the region”, and enhances Palestinians’ aspirations for obtaining their legitimate rights and building an independent state on their national soil. Mubarak also briefed King Abdullah on the summit that took place in Riyadh Wednesday bringing together Saudi King Abdullah, Syrian President Bashar Assad and Kuwait Emir Sheikh Sabah Al Ahmad Al Sabah in addition to the Egyptian president to launch a new era of pan‐Arab cooperation. Analysts quoted by Reuters said the effort was aimed to restore a semblance of Arab harmony before a summit later this month. The talks, they said, formalise the return of Damascus to the Arab fold and could help Cairo's efforts to mediate a reconciliation between Palestinian groups.

Jordan seeks no role in W. Bank’

The government reasserted that Jordan seeks no role in the West Bank. In remarks to reporters following a Cabinet meeting yesterday, Minister of State for Media Affairs and Communications Nabil Sharif said the Kingdom “does not aspire to have a security nor any other role in the West Bank”. He was responding to a question on statements made by Azzam Ahmad, chief of the Fateh bloc at the Palestinian Legislative Council, regarding a Jordanian security role in the West Bank during the coming stage, the Jordan News Agency, Petra, said. The US administration reportedly plans to boost security assistance to the Palestinian Authority, including funding for training conducted by Jordanian police at a base near Amman, by up to 70 per cent, from $75 million in fiscal year 2008 to as much as $130 million, Reuters reported. Jordan has staunchly rejected the so‐called “Jordan option”, which some Israelis and their supporters advocate, suggesting that Jordan takes over administration of the West Bank as an alternative to an independent Palestinian state.

Germany to accept 500 Iraqi refugees from Jordan

Germany will resettle 2,500 Iraqi refugees from Jordan and Syria, according to the UN High Commissioner for Refugees (UNHCR) office in Amman. UNHCR spokesperson Dana Bajjali told The Jordan Times on Thursday that upon Germany’s request, 500 Iraqis will be repatriated from

192 the Kingdom and 2,000 from Syria. She said that 17 cases involving 65 indivuals were accepted by the German government and the refugees are expected to leave Jordan soon, adding that there are 53,759 cases in Jordan registered at UNHCR. According to the Norwegian research institute Fafo, the number of Iraqis living in the Kingdom is estimated to be between 450,000 and 500,000, Bajjali said. The majority reside in Jordan as “guests” rather than refugees, yet they are offered free education and other services. On March 5, a senior Swedish official visited Syria and urged European nations to take in more Iraqi refugees, saying that Sweden will put the issue on the agenda when it assumes the European Union Presidency in July. According to the German broadcasting company Deutsche Welle, successful asylum applicants were required to have a clean criminal record and are not former members of the ruling Baath Party during the era of late president Saddam Hussein.

Social front

Queen reviews Early Childhood Development strategy

Her Majesty Queen Rania reviewed the Early Childhood Development (ECD) strategy during a visit to the Ruseifa Secondary School for Girls. At a meeting with 26 officials from the ministries of social development and education, UNICEF and the National Council for Family Affairs (NCFA), Her Majesty discussed how efforts exerted in the area of ECD benefit children, improve their learning process and raise ECD policies and standards. The meeting also focused on the importance of kindergarten in creating an enabling environment in which children improve their problem‐solving skills and increase their communications and ability to relate to other students, parents and teachers.

During a tour of classrooms, the Queen also met with a group of 13 mothers to discuss how the better parenting training programme, offered to 130,000 families by different service providers, generated a positive change in their relationships with their spouses and children. One mother told the Queen the course was especially beneficial to fathers as it increased their participation and involvement in school matters, as well as encouraged them to treat both their sons and daughters equally. Her Majesty also discussed the impact and influence of media and television on children and highlighted its potential as a learning tool, while encouraging mothers to be selective in their choice of programmes and monitor their children while watching TV. In addition, the Queen met with 20 kindergarten children and was briefed on the new ECD practices in the classroom, which include the KidSmart computer tool, the kitchen section, building blocks and painting.

193 The ECD strategy, which highlights the rights, needs and requirements of all children, will be launched by the NCFA, in coordination with UNICEF and the League of Arab States during a five‐ day workshop that opens on March 16.

Economic front

SSC to finance retirees’ small, medium projects

The Social Security Corporation (SSC) said it has begun a financing programme for its retirees in cooperation with the Development and Employment Fund (Reyada). The programme aims to support existing projects owned by the corporation’s retirees, as well as those under development, SSC Director Omar Razzaz told. Under the slogan: “We finance, and you pay in instalments at your convenience”, the corporation launched an advertising campaign encouraging the retirees to take advantage of this programme. The SSC realises its social responsibility, so it decided to “put part of its financial power at the service of its retirees”, particularly those who receive low and medium pension allowances, Razzaz said. The corporation intends to provide the pensioners with “easy to repay” loans ranging from JD2,000 to JD15,000 to “support the small‐ and medium‐sized projects owned by the corporation’s retirees”, Razzaz added. As the SSC’s figures show that 75 per cent of the corporation’s retirees receive less than JD200 in pensions and only 5 per cent receive more than JD500 a month, the corporation launched the programme to help relieve its retirees amid hard economic conditions, Razzaz said. The SSC has 100,000 retirees in addition to 107,000 beneficiaries (heirs), the SSC chief said, adding that “this is a very large segment of the population that needs support rather than just pensions”.

King: Businesspeople should unite in face of crisis

His Majesty King Abdullah met on Monday with chief executive officers and managers of international banks participating at an international monetary conference in Amman.

At the meeting, King Abdullah underlined the urgent need to foster partnerships among business communities around the world to deal with the current global financial crisis.

His Majesty also highlighted the economic and investment opportunities available in the Kingdom, stressing that enhancing economic performance is a priority to the Kingdom.

194 Discussions at the meeting also focused on financial and economic issues in the region and the world.

Loans grow in 2008, but banks more conservative now

Licensed banks’ credit facilities reached JD13.193 billion in the Kingdom in 2008, marking a 16 per cent increase over 2007, when the figure was JD11.295 billion. According to the Central Bank of Jordan (CBJ) figures, retail credit facilities extended in 2008 increased by JD545.6 million, accounting for 28.8 per cent of the total increase in the size of credit facilities. Credit facilities extended to the “general trade” sector increased by JD475 million, representing 25 per cent of the total increase in the volume of credit facilities, according to CBJ figures.

The construction and industry sectors, whose facilities increased by JD328.8 million and JD246.5 million respectively, accounted for 17.3 per cent and 13 per cent of the total increase in the volume of credit facilities, coming in third and fourth respectively. Bankers, however, acknowledge that the banking sector in Jordan is adopting a strict lending policy on personal loans due to “uncertainty in the job market”. A bank manager who preferred to remain unnamed said that since the world started to feel the impact of the global financial crisis, in the fall, the number of personal loans granted decreased. No official figures were available on the decline. Meanwhile, investors in the housing sector say banks are applying very strict criteria for accepting housing loan applications because they do not want to lend under the current economic circumstances. Director of the Association of Banks in Jordan (ABJ) Adli Kandah recently told The Jordan Times that the global financial crisis has prompted banks to review their credit strategies not only in Jordan but worldwide. Prime Minister Nader Dahabi said during a meeting with journalists in his office Thursday that banks have approved around 75 per cent of the JD5.4 billion credit facilities requested, which amounts to JD4 billion.

‘Banking sector safe and sound’

Prime Minister Nader Dahabi said that the banking system in Jordan is strong and sound. He attributed the favourable situation of the sector to the policies adopted by the Central Bank of Jordan, which, he said, have proved prudent, the Jordan News Agency, Petra, reported. During a meeting with chief executive officers and managers of international banks who are participating at an international monetary conference in Amman, Dahabi outlined the economic situation in the Kingdom and macroeconomic indicators in light of the global financial crisis. The premier said last week that economic outlook for Jordan is good with uncertainty, adding that the

195 government is keeping an eye on vital indicators to respond at the right time and with the right decisions.

ASEZ lures $14b‐worth investments

His Majesty King Abdullah emphasised the need to proceed with efforts to attract more foreign investment and implement projects, particularly in the tourism sector. King Abdullah made his remarks while chairing a meeting of commissioners of the Aqaba Special Economic Zone Authority (ASEZA). At the meeting, ASEZA Chief Commissioner Hosni Abu Gheida briefed the King on investments attracted so far in the zone and efforts to develop local communities and expand tourism, especially after Aqaba was selected as the Arab Tourism Capital for 2010. Abu Gheida said the volume of investments, projects and agreements signed in 2008 in the zone exceeded $14 billion, noting that they will be implemented over the next 10 years. Such projects include the Marsa Zayed project, a $10 billion real estate investment in Aqaba, the Aqaba Technological University and other tourism and industrial projects, said Abu Gheida. Also in 2008, the number of tourists to Aqaba rose to more than 442,000 and the number of cruise ships docking at the Red Sea town exceeded 89, Abu Gheida told King Abdullah.

ISRAEL AND PALESTINE

Political front

Lieberman; most likely to become Israel's new foreign minister

Avigdor Lieberman, of the Yisrael Beiteinu ultra right‐wing party in Israel, has become the most likely candidate for foreign minister in Israel's forthcoming right‐wing government, headed by Likud leader Benjamin Netanyahu. Israeli online daily Haaretz reported that Lieberman intends to demand “full autonomy” in his new post. Lieberman's party, known for extremist views against Arabs and Palestinians, and for exposing agendas of massive deportation, has become the third most popular party in Israel. On Thursday, Lieberman and Netanyahu met at the Knesset, but contents of their meeting were not made public. Haaretz stated from a source involved in the talks that Lieberman is poised to become foreign minister, but he does not simply want to just be foreign minster; he wants full autonomy, and for this to be included in any coalition agreement with the Likud party. Lieberman, Haaretz stated, does not want Silvan

196 Shalom, a former foreign minister, to be in charge of talks with Syria. Shalom is a member of Netanyahu’s Likud party, and some Israeli sources stated that he is also interested in this post in Netanyahu’s coalition government. Haaretz also reported that relations between Lieberman and Netanyahu were on the rocks after later talks between Netanyahu and Ehud Barak, the Labor party leader, in regards to a possible coalition. Israeli sources reported that the Labor party stated that it does not wish to be part of a government that includes Lieberman, due to his racist statements against Arabs and Palestinians. The Kadima party will most likely be in opposition. The Labor party, with slightly different policies, is also heading towards the opposition. This leaves the hard‐line party of Lieberman in a better position to press for demands to be accepted in a coalition with the Likud party.

Lieberman may not join government due to corruption charges

Israeli sources reported that the Yisrael Beiteinu leader, Avigdor Lieberman, will not last in the upcoming Israel government due to a criminal probe being undertaken by the police against him. The current coalition talks with the Likud party might lead Lieberman to the post of Israel's Foreign Minister. But, sources said Monday that Lieberman might have to resign after the Israeli police conclude their investigation. Israeli newspaper Haaretz reported that corruption evidence against Lieberman were not made public yet, and that the police will most likely file more charges against him. The Yisrael Beiteinu leader will most likely be interrogated by police in the coming days.

Abbas asks Fayyad to resume duties until dialogue bears fruit

Palestinian President, Mahmoud Abbas, asked the Palestinian Prime Minister, Dr. Salaam Fayyad, to remain at his post until the internal Palestinian talks achieve positive results, including an agreement for legislative and presidential elections. Dr. Fayyad and his government submitted their resignations, effective at the end of this month, in order to facilitate an agreement for a National Unity Government in the Palestinian territories. The government would be based on the outcome of national dialogue held in Cairo. At the opening speech of the Saturday meeting of the Executive Committee of the Palestinian Liberation Organization (PLO) in Ramallah, Abbas asked Fayyad to remain at his post until positive results are achieved in the near future. Abbas said that Fayyad submitted his resignation in order to push forward national unity talks, and efforts to form a unity government. The Palestinian President added that he hopes the upcoming internal dialogue sessions in Cairo would lead to unity, and to an agreement to form a national unity government. Abbas also said that the Palestinian government, headed by Fayyad, presented to the Sharm al‐Sheikh summit a comprehensive plan for rebuilding the Gaza Strip. He added that he hopes this plan would be implemented as soon as possible as the situation in Gaza cannot tolerate further delays due to the increasing suffering of the residents.

197 PM Fayyad urges President Abbas to back unity government

The resigned Palestinian Prime Minister, Salam Fayyad, urged Palestinian president Mahmoud Abbas to back the formation of a national unity government. Fayyad, who recently resigned to Abbas, asserted that the Palestinian Authority should back a unity government of both Hamas and Fatah to unify the two extremes of Palestinian politics. Fayyad also emphasized that the ongoing Israeli settlement activities in the occupied West Bank pose a stumbling block to the path of regional peace. The Palestinian Prime Minister's resignation comes as representatives of Fatah and Hamas hold talks in the Egyptian capital to achieve a unity government that could end the Israeli blockade of Gaza, and an internationally‐enforced embargo.

Mizhir: PFLP participation in unity government depends on its agenda

Jamil Mizhir, member of the Popular Front for the Liberation of Palestine (PFLP), reported that the optimism towards reconciliation, and the recent developments in unity talks still require strong political will to overcome ongoing difficulties. Mizhir added that optimism for a solution by the internal talks committees does not negate the fact that there are still obstacles and difficulties facing internal unity talks. He stated that resolving the difficulties requires strong political will from all factions. Commenting of the PFLP's participation in the unity government, Mizhir said that this depends on the formulation and agenda on the new government. He said that the PFLP wants a unity government that includes independent and public figures, and that its agenda should be based on the National Unity document.

Hamas will not accept Fayyad as PM

Islamic Resistance Movement, Hamas, rejected media reports stating that the Palestinian President, Mahmoud Abbas, suggested that Prime Minister, Dr. Salaam Fayyad, should remain in his post under a unity government Palestinian factions started the first round of unity talks on Egypt on Tuesday in an attempt to reach a unity deal that would end the Hamas‐Fateh rift. Hamas said that the Prime Minister's post and other government formations can only be set in internal dialogue. Ismail Al Ashqar of Hamas, member of the Security Committee, one of five committees running the internal talks, said that suggesting Fayyad cannot be accepted as PM as the new Prime Minister of a unity government should be determined by unity talks. He added that what president Abbas is doing is considered placing obstacles in front of unity talks and reconciliation efforts. Furthermore, Al Ashqar added that Hamas rejects any American intervention in internal Palestinian politics. The political leader said that Hamas delegates went to Cairo because they are seeking the best interests of the Palestinian people, and that they carry a strategic decision to end internal divisions.

Hamas says releasing its prisoners from West Bank jails important for unity talks

198 A Hamas leader in Gaza said on Wednesday that his party is determined to achieve success during current Cairo dialogue with the rival Fatah party and other political parties who are joining the talks. Ismail Redwan, in a statement emailed to media outlets, asserted that releasing Hamas political prisoners, being jailed by the Fatah‐dominated government in the West Bank is a top priority for Hamas now and that releasing them would give a momentum to the Cairo talks. Yesterday, 75 Palestinians, representing more than a dozen of Palestinian political parties and independent factions, participated in a Cairo‐hosted national unity dialogue that aims at forming a power‐sharing government of Hamas and Fatah. Participants are expected to go into details in five key issues, reformation of Palestine Liberation Organization, elections, reconciliation, security and the unity government.

Rivals set to begin unity talks

Palestinian President Mahmoud Abbas urged his Hamas rivals Sunday to move quickly toward a unity government able to rebuild Gaza after a devastating December-January Israeli military offensive. But he warned that any unity deal would have to include recognizing Israel’s right to exist which Hamas rejects. Abbas spoke as negotiators from his Fatah Party prepared to meet Hamas officials in Egypt beginning Tuesday for what are expected to be the most serious reconciliation talks since Hamas violently seized power in Gaza nearly two years ago.

Geo strategic front

Israel Closes Mauritania Embassy After Gaza Spat

Israel closed down its embassy in Mauritania, one of three Arab nations that have diplomatic ties with the Jewish state, the foreign ministry said, in the wake of a dispute over the Gaza war. "Following a Jan. 16 decision of the Mauritanian government to freeze ties with Israel, and at the request of Mauritania, Israel today closed its embassy in Nouakchott," a foreign ministry statement said. Mauritania called back its ambassador in Israel following the 22‐day offensive against the Hamas‐ruled Gaza Strip that was launched on Dec. 27. In Nouakchott, an AFP correspondent said the Israeli flag and security measures, including surveillance cameras, had been taken down overnight. A diplomatic source said embassy staff was expected to leave Mauritania on Friday or Saturday. An Israeli diplomatic official declined to comment on the matter. It was not clear if the embassy closure was temporary or permanent, signaling a break in diplomatic ties which date from 1999. Egypt and Jordan are the only other Arab countries to have formal diplomatic relations with Israel. Israel's attack on Gaza in response to rocket fire killed more than 1,300 Palestinians and 13 Israelis.

Hamas delegates arrive in Egypt

199 Izzat al‐Rishiq, member of the Political Bureau of Hamas, reported on Monday that Hamas delegates from Gaza and abroad had arrived in Egypt for National Unity talks. Hamas delegates from the West Bank are still unable to leave the West Bank due to Israeli restrictions on their movements. The Hamas team is headed by Mousa Abu Marzouq, deputy head of the Hamas Political Bureau. al‐Rishiq stated that Hamas had asked Egypt to urge Israel into allowing West Bank delegates to travel and participate in the upcoming unity talks. Hamas decided to send five of its West Bank members to participate in the talks. The five are, Ra'fat Nassif, Adnan Asfour, Khalid Tafish, Mahmoud Musleh and Nizar Ramadan. al‐Rishiq also stated that the Israeli occupation and its allies are not interested an internal Palestinian talks that would lead to unity among the Palestinian factions. He also said that the Palestinian Authority, headed by Mahmoud Abbas, in the West Bank, arrested 24 Hamas members and supporters since February 24.

Israel facing challenge of mending ties with Muslim world

In the wake of Mauritania's decision to close Israel's embassy in protest against the recent Israeli military operation in the Hamas‐ruled Gaza Strip, the Jewish state is now facing the challenge of mending ties with the Muslim world. On Friday, Mauritania, one of the three Arab countries to have diplomatic relations with Israel and have maintained the ties for more than a decade, ordered the Israeli ambassador to the West African country to leave within 48 hours. The development came after reports in January that Mauritanian Foreign Ministry spokesman Babah Ould Sidi Abdalla said the country's ambassador in Tel Aviv has been ordered to come back for consultation. Mauritanian State Council President Gen. Mohamed Ould Abdela Aziz declared a freeze on ties with Israel at a mini‐summit of Arab countries held in Qatar in January, in protest against the 22‐day‐long Cast Lead Operation in Gaza, which ended on Jan. 18. The devastating Israeli war with a declared aim of ending Palestinian rocket fires against its south has killed over 1,300 Palestinians and wounded 5,500 others. Israel was taken by surprise when Mauritania, which was highly critical of the Jewish state during the Gaza operation, announced its decision to shut down Israel's embassy in Nouakchott. After Mauritania recalled its ambassador to Israel for consultation, Israel assumed that was the end of the matter and that bilateral relations would pick up. Even before the decision, Mauritania, which followed Egypt and Jordan in becoming the third member of the Arab League to recognize Israel, was indicating things might change. Yet there is still room for some optimism. In Israel's corridors of power, there was a positive reaction to meetings between senior American diplomats and both Turkish and Syrian leaders over the weekend. Israel believes the apparent new direction taken by the U.S. administration led by Barack Obama in dealing with the Middle East could open up doors for the Jewish state.

ClintonIsraeli Ambassador to the US quits post

Sallai Meridor, the Israeli Ambassador to the United States, stated that he will be leaving his office soon to return to Israel, Israeli online daily Ynet News reported. Ynet News reported that Meridor informed Israel’s Prime Minister, Ehud Olmert, and Prime Minister‐designate Benjamin

200 Netanyahu, of his decision just before travelling to the Middle East with the U.S secretary of State, Hillary Clinton. After announcing his resignation, Meridor stated that the “Ambassador to the United States, the most important country in the World, and Israel’s strongest ally, should be appointed by the new Israeli government,” Ynet reported. Meridor added that he wishes success to Netanyahu in forming a new government, and also wished him success in what he described as “challenges facing Israel”. Meridor took office as ambassador in October of 2006.

Hamas delegates arrive in Egypt

Izzat al‐Rishiq, member of the Political Bureau of Hamas, reported on Monday that Hamas delegates from Gaza and abroad had arrived in Egypt for National Unity talks. Hamas delegates from the West Bank are still unable to leave the West Bank due to Israeli restrictions on their movements. The Hamas team is headed by Mousa Abu Marzouq, deputy head of the Hamas Political Bureau. al‐Rishiq stated that Hamas had asked Egypt to urge Israel into allowing West Bank delegates to travel and participate in the upcoming unity talks. Hamas decided to send five of its West Bank members to participate in the talks. The five are, Ra'fat Nassif, Adnan Asfour, Khalid Tafish, Mahmoud Musleh and Nizar Ramadan. al‐Rishiq also stated that the Israeli occupation and its allies are not interested an internal Palestinian talks that would lead to unity among the Palestinian factions. He also said that the Palestinian Authority, headed by Mahmoud Abbas, in the West Bank, arrested 24 Hamas members and supporters since February 24.

Israel facing challenge of mending ties with Muslim world

In the wake of Mauritania's decision to close Israel's embassy in protest against the recent Israeli military operation in the Hamas‐ruled Gaza Strip, the Jewish state is now facing the challenge of mending ties with the Muslim world. On Friday, Mauritania, one of the three Arab countries to have diplomatic relations with Israel and have maintained the ties for more than a decade, ordered the Israeli ambassador to the West African country to leave within 48 hours. The development came after reports in January that Mauritanian Foreign Ministry spokesman Babah Ould Sidi Abdalla said the country's ambassador in Tel Aviv has been ordered to come back for consultation. Mauritanian State Council President Gen. Mohamed Ould Abdela Aziz declared a freeze on ties with Israel at a mini‐summit of Arab countries held in Qatar in January, in protest against the 22‐day‐long Cast Lead Operation in Gaza, which ended on Jan. 18. The devastating Israeli war with a declared aim of ending Palestinian rocket fires against its south has killed over 1,300 Palestinians and wounded 5,500 others. Israel was taken by surprise when Mauritania, which was highly critical of the Jewish state during the Gaza operation, announced its decision to shut down Israel's embassy in Nouakchott. After Mauritania recalled its ambassador to Israel for consultation, Israel assumed that was the end of the matter and that bilateral relations would pick up. Even before the decision, Mauritania, which followed Egypt and Jordan in becoming the third member of the Arab League to recognize Israel, was indicating things might change. Yet there is still room for some optimism. In Israel's corridors of power, there was a positive reaction to meetings between senior American diplomats and both Turkish and Syrian

201 leaders over the weekend. Israel believes the apparent new direction taken by the U.S. administration led by Barack Obama in dealing with the Middle East could open up doors for the Jewish state.

Clinton: U.S. to push for Israel‐Syria reconciliation

Secretary of State Hillary Clinton stressed during her visit to Ankara that the United States would like to see a resumption of the talks between Israel and Syria. However, in closed talks Prime Minister‐designate Benjamin Netanyahu said he prefers to give priority to the Palestinian track over the Syrian one. The importance of indirect peace talks between Syria and Israel "cannot be overstated," Clinton said at the end of a meeting with her Turkish counterpart Ali Babacan. For his part, Babacan said that if Israel and Syria asked for Turkish assistance in mediating the talks, Ankara would be glad to oblige. The visiting American Secretary of State praised Turkey's mediation role, saying that "the importance of this track, the peace effort, cannot be overstated. Turkey has played a very important role." However, despite the declarations in Ankara about the importance of the Syrian track, Netanyahu does not appear to share this view. In talks with a number of foreign ministers and diplomats in the past two weeks, the prime minister‐designate said that he would give priority to the Palestinian track. However, once Netanyahu assumes office he might change his view, since the Syrian track is, in terms of internal party and coalition politics, easier for him and could be part of the broader international effort to contain Iran's nuclear program through closer ties between Washington and Damascus. Clinton also said that President Barack Obama will visit Turkey next month, thus fulfilling his election pledge to visit a Muslim state within the first 100 days of his presidency. "His decision was reached late yesterday in Washington and we are very excited that the president will be coming to Turkey. The exact date will be announced shortly," she said, adding the visit reflected the value the U.S. places on its ties with predominantly Muslim Turkey. Meanwhile, senior U.S. State Department officials held talks in Damascus yesterday with Foreign Minister Walid al‐Moallem, the highest‐ level meetings between representatives of the two countries since 2005. Syria, for its part, said the two sides were in agreement on the "importance of continuing the dialogue to achieve goals that serve common interests and bring about peace and stability to the region," according to the official news agency SANA. Feltman said an Israel‐Syria peace track is part of the Obama administration's vision for a comprehensive peace between Israel and its Arab neighbors, and promised "there will be a Syrian‐Israel track at some point," but that a new Israeli government must be formed before the United States decides its next steps.

Israeli Ambassador to the US quits post Sallai Meridor, the Israeli Ambassador to the United States, stated that he will be leaving his office soon to return to Israel, Israeli online daily Ynet News reported. Ynet News reported that Meridor informed Israel’s Prime Minister, Ehud Olmert, and Prime Minister‐designate Benjamin Netanyahu, of his decision just before travelling to the Middle East with the U.S secretary of

202 State, Hillary Clinton. After announcing his resignation, Meridor stated that the “Ambassador to the United States, the most important country in the World, and Israel’s strongest ally, should be appointed by the new Israeli government,” Ynet reported. Meridor added that he wishes success to Netanyahu in forming a new government, and also wished him success in what he described as “challenges facing Israel”. Meridor took office as ambassador in October of 2006. Social front

Dichter claims Palestinian Resistance obtained anti‐aircraft missiles

Israel's Internal Security Minister, Avi Dichter, claimed on Sunday that Palestinian resistance groups in Gaza managed in recent days to obtain anti‐aircraft missiles. He called for further strikes against the resistance. The statements of Dichter came during the weekly cabinet meeting. He warned that arms smuggling into Gaza is ongoing, and that Hamas is managing to store missiles and explosives, and continues to develop shells. The security chief slammed Egypt for what he described as “[a] lack of action against arms smuggling”. He also claimed that Hamas and other factions are continuing their attempts to attack Israeli targets, and that the resistance is firing at least five homemade shells into Israel every day. EGYPT

Political front

Gamal Mubarak Is Egypt’s Successor, Says Cnn’s Fareed Zakaria

Introduced as the potential successor to his father the Egyptian president, Gamal Mubarak steered clear of the inheritance of power scenario during an interview with CNN’s Fareed Zakaria on Sunday. He opted instead to discuss Islamic fundamentalism, Barack Obama’s election and Middle East conflicts. If there is any hope for the Arab World to become more open, prosperous and less prone to terror, Zakaria added, then it lies in Egypt. Mubarak said that the current Islamic revival in Egypt is rooted in the tensions between the West and the Arab world, which has in return given an opportunity for radicals “to try and fill gaps in society, to try and be more aggressive in convincing Islamic societies that they speak on their behalf, that they sort of understand their frustration and they, and they alone, have answers for their problems.” These, he continued, are usually confrontation and violence. Zakaria asked how the Egyptian‐ Israeli relationship is said to be “a very thin official relationship” while there seems to be a widespread anti‐Semitism among the people. Mubarak explained that this also exists on the Israeli side and there is no way of changing that until there is a settlement. Mubarak was on a visit to Washington DC during which he met with US congressmen and attended seminars at a

203 number of influential US think tanks, including the Council of Foreign Relations and the Center for Strategic International Studies.

Economic front

International Report: Egyptian Cotton Production Declines by 50%

The British Economist Intelligence Unit, Egypt, has said that Egypt's production of cotton during the last season slumped by 50% compared to the previous season, as cotton‐cultivated areas declined from 583,000 acres in the 2007/2008 season to 313,000 acres in 2008/2009. The report added that farmers refrained from planting cotton last season due in particular to the expected decline in its prices compared to other crops. Due to the 50% decline in the annual production of Egyptian cotton, the farmers have increased prices to a level that has been never expected by cotton traders. The report, which was released last Tuesday, added that export sales in the current season ‐ August 2008/July 2009 – reached 10% of the total 2.24 million kantars sold last year. In addition, domestic sales dropped by some 50% compared to the previous year, as they amounted to 830 thousand kantars. The Egyptian government is coming under pressure from Egyptian economic pressure groups. They are calling on the government to subsidy Egyptian cotton with LE150 per kantar within the framework of the government's announced plan to subsidize cotton and impose a temporary ban on imports. The Economist Intelligence Unit has also expected the world demand for Egyptian cotton to decline by 6% in the 2008/2009 season compared to the previous one. This decline may be more than 6% in case there was a higher world demand for Chinese textiles, which compete with the Egyptian ones.

Social front

SCA Chairman: 95% of Tourists Will not Return to Egypt

The Secretary General of the Supreme Council of Antiquities (SCA) Zahi Hawass has pledged to establish a union of archaeologists in Egypt before he leaves office. He also pledged to get back the bust of Nefertiti from Germany. This came during the inauguration of the program on archaeological awareness, which was organized by the SCA in cooperation with the Faculty of Arts of Ain Shams University. Hawass added that the SCA is re‐working to get back the bust of Nefertiti, especially after the Germans refused to lend Egypt the bust to be presented at the opening ceremony of the Great Museum in 2011. In addition, he said there are new documents showing that the German archaeologist Ludwig Borchardt deceived the Egyptians with regard to

204 the bust, as he intended not to show its historical and archaeological value. Hawass condemned the recent blast in Khan al‐Khalili district, describing the perpetrators as fools. Any threat to Egyptian tourism threatens Egypt with hunger, he said. He added that while he was in the city of Hurghada, he was disappointed to learn that 95% of tourists expressed their unwillingness to return again to Egypt, based on a questionnaire distributed to them by travel agencies. Hawass said he felt new hope, though, in the cafeteria where the ministers of higher education and investment were sitting, as he saw a group of young people distributing roses among tourists and calling on them to return again to Egypt. He also pledged to appoint the faculty's top ten students. Hawass, the country’s top antiquities official, said he hoped to contribute to the establishment of Suzanne Mubarak Museum for Children by selling his famous hat, the price of which has reached LE1.25 million ($250,000) so far. A student wearing niqab [full face veil] said Hawass rejected niqab‐wearing women working in the SCA, but he replied saying this was untrue as two niqab‐wearing women worked with him.

Geo strategic front

Palestinian Factions Begin Unity Meeting in Cairo

Rival Palestinian factions began a meeting in Cairo aimed at forming a national unity government and resolving major disputes between Hamas and Fatah, the two largest groups. Senior delegations from Hamas and Fatah and smaller factions were due to start work in five reconciliation committees which they agreed to form last month in the Egyptian capital. Omar Suleiman, Egypt’s intelligence chief who has been mediating between the factions, launched the meeting with an address calling on the factions to work hard toward a reconciliation, the Egyptian state‐news agency MENA reported. But lingering distrust between the Islamist Hamas rulers of Gaza and the Western‐backed Fatah threatens to complicate the talks. International donors pledged $4.5 billion for reconstruction aid for the impoverished coastal strip last month. But many donor countries, backed by Abbas’ government, have said they would not deal with the Hamas government in Gaza. Western governments have expressed their support for Palestinian Authority president Mahmud Abbas’s proposal for a government of independents and technocrats. Hamas and Fatah have been bitterly divided since the Islamists seized Gaza in a week of deadly fighting in June 2007, limiting Fatah’s powerbase to Abbas’ Palestinian Authority in the West Bank. The committees formed by the factions are to work on forming a unity government, reforming the security services and PLO, on new presidential and parliamentary elections, and cementing national reconciliation.

Gamal Mubarak Discusses Economic Reform And Bilateral Relations On Us Visit

Gamal Mubarak wrapped up his controversial visit to the United States this week where he participated in a number of meetings with US officials and experts addressing the global

205 financial crisis and its effects on Egypt. Mubarak also discussed bilateral relations between Egypt and the United States. According to a statement published by "America in Arabic" news agency, Mubarak participated in a closed session last week that comprised a number of experts in Washington and was organized by the Center for Strategic and International Studies (CSIS). Last Wednesday, Mubarak participated in a roundtable on the “Intelligence Community and the Transition to the New Administration,” organized by the Council on Foreign Relations. Mubarak also discussed measures adopted by Egypt to mitigate the impact of the financial crisis on the Egyptian economy and to maintain growth and employment rates. Concerning US aid, Abu Taleb said that Mubarak had discussed a diversified aid package which would include programs that would help stabilize the Egyptian pound in the midst of the financial crisis. Bi‐monthly US magazine Foreign Policy quoted a Washington pro‐democracy source who said Gamal’s trip had two purposes. “First, trying to lobby Congress against any sort of conditionality or earmarking in appropriations of US aid to Egypt. Second, he is also trying to feel out different audiences to get a sense of what kind of reception his father will receive when he comes next month,” the magazine said. Gamal Mubarak also addressed normalizing relations with Israel, explaining the difficulty of bringing the Egyptian people on board, given the conditions in Palestine and the “massacres committed by Israel.”

He also tackled Egypt’s relationship with Iran, saying there are deep differences in each country’s views. He said that based on previous experiences, the US should not resort to military force to achieve peace. In a meeting attended by Richard Haass, president of the council, and Middle East Envoy Tony Blair, Mubarak explained the strategies of the National Democratic Party — on which he serves as the assistant secretary‐general — when dealing with regional issues. Mubarak also met with Senator John Kerry, who chairs the Senate Foreign Relations Committee, and Republican Howard Berman, Kerry’s counterpart in the House of Representatives. Berman, chairman of the House Foreign Affairs Committee, said in a statement, “I don’t want to go into the substance of a private meeting [with Gamal Mubarak], but I can say that Mr Mubarak is highly intelligent and fully conversant in the issues affecting US‐ Egyptian relations and Middle East peace. He is a strong and sensible advocate of Middle East peace and of close cooperation with the United States.”

Egyptian Activists in the US Call For Democratic Reform

Egyptian political activists in the US sent a letter to President Hosni Mubarak last week requesting the implementation of five main democratic reforms, according to the website “The Alliance of Egyptian Americans.” The letter, which was signed by eight activists, called on the government to end the emergency laws, in force since 1981, release political prisoners, establish a common set of laws regulating the building of places of worship, creating a more democratic system of government, and assigning a committee to rewrite the constitution. The signatories included Muslim and Coptic democracy advocates and human rights advocates, including the exiled Saad El‐Din Ibrahim, Quranist Ahmed Mansour, and the head of the Coptic Assembly of America Cameel Halim. The letter was released on Feb. 28, three days after the US State

206 Department published a report citing Egypt’s poor human rights record. The Egyptian government has been continuously criticized by rights organizations for its stringent restrictions on freedom of expression, religious freedoms and its failing democracy. Yet, some progress has been made on the religious freedom and democracy fronts on the heels of the new Obama administration. The release of former Egyptian presidential candidate Ayman Nour was, to some, a first step. According to Ramsis El‐Naggar, a religious freedoms lawyer, the Egyptian government has already started to consider discussing a set of laws that will push the freedom of building places of worship.

Israeli Official Holds Prisoner Swap Talks In Cairo

Israeli negotiator Ofer Dekel has held talks in Cairo with Egyptian mediators on a prisoner swap with the Palestinian group Hamas, an Egyptian official said on Sunday. Dekel's visit, the second in as many weeks, was aimed at securing the release of Israel soldier Gilad Shalit, who was captured by Gaza fighters in June 2006. The official said Dekel left Cairo on Sunday but gave no further details. Egypt has brokered talks between Israel and Hamas over his release for months, with Hamas demanding the release of more than 400 Palestinian prisoners in return. Last month Israel's security cabinet said Shalit's release was a prerequisite for the reopening of border crossings into the Gaza Strip, as part of an Egyptian‐brokered truce with Hamas. Israel has sealed off the crossings to all but vital humanitarian goods since June 2007 when Hamas seized power in Gaza, where Israel waged a deadly three‐week war in December and January. Israeli newspaper Haaretz reported last month that Dekel had proposed to release 220 Palestinian prisoners during a visit to Egypt in February.Meanwhile Shalit's parents have moved into a tent outside the Jerusalem house of interim Prime Minister Ehud Olmert to pressure the Israeli government to do more to free him.

Egypt to Press Iraq For $2 Billion Debt

A top Egyptian diplomat says Egypt will press Iraq to repay some $2 billion in debt incurred during the reign of deposed leader Saddam Hussein. Deputy Foreign Minister Abdel‐Rahman Salah says the debt issue will top the agenda of talks this week aimed at boosting bilateral ties. Salah says before Egypt reopens its diplomatic mission in Baghdad it would like to resolve the debt issue and increase exports. Cairo closed its mission in Baghdad in 2005 after its chief envoy was kidnapped and killed by Al‐Qaeda. Iraq has at least $67 billion in foreign debt — most of it owed to fellow Arab countries Saudi Arabia and Kuwait. The United States has repeatedly urged Iraq's debtors for relief and to open embassies in the country.

Yemeni court drops charges against Egyptian fishermen

207 The Qashan Primary Court in the province of Mahara has cleared three Egyptian fishermen of illegal entering Yemen's territorial waters and fishing without official licenses. The court deemed on Saturday the arrests of the three Egyptians as unlawful and owing to insufficient evidence the court dropped convictions against the three. Moreover, the court dismissed a lawsuit filed by the Fisheries Office in the province against the Egyptians as unproved. The Egyptian fishermen have been released with their boats and fish onboard. On January20, the Yemeni navy seized an Egyptian boat that was fishing illegally in the country's territorial waters. The boat was captured in the Ras Eassa area of the Red Sea with twenty‐four Egyptian fishermen onboard seized as well. Earlier, the navy seized four Egyptian boasts while illegally fishing in Yemen's waters. Last year, a Yemeni court fined three Egyptian boats $ 150.000,which were held for fishing illegally in Yemeni waters. However, the boats were released, with the fish on board to the captains. Yemen and Egypt signed an agreement last year under which Egyptian fishing boats are required to obtain licenses from Yemeni authorities to fish in Yemeni waters. Before the signing, an Egyptian fishing boat attacked a Yemeni coastguard patrol in the Red Sea killing a coastguard and injuring another. In response to the attack, Yemen intensified measures to curb foreign fishing in its waters, imposing a ban on Egyptian boats in particular.

208

BUSINESS AND POLITICS IN THE MUSLIM WORLD

Gulf Cooperation Council (GCC)

Madiha Kaukab

Weekly Report: from 7th March 2009 to 13th March 2009

Presentation Date: 18th March 2009

Following news monitoring report is based on the important political, social, economic and International events occurred in Gulf Cooperation Council States.

GCC

Gulf Stocks Drop, Led by Real­Estate Companies; Arkan Tumbles Persian Gulf stocks declined, led by real‐estate and construction companies. Gulf markets continue to suffer contagion from international markets as risk aversion continues to persist.

The Abu Dhabi Securities Exchange General Index fell 1.5 percent and the Dubai Financial Market General Index lost 0.5 percent. Saudi Arabia’s Tadawul All Share Index declined 0.6 percent to 4,105.27 at 2:21 p.m. in Riyadh, bringing the four‐ day drop to 5.6 percent. Qatar’s second‐largest property developer by market value, declined 5.6 percent to 18.7 riyals. Samba, the second‐largest bank in Saudi Arabia by market value, lost 1.5 percent to 39.7 riyals. The Doha Securities Market Index retreated 1.4 percent after jumping the most in five months yesterday as the government said it will buy investment funds from banks. Oman’s Muscat Securities Market 30 Index fell 1.1 percent and the Kuwait Stock Exchange Index dropped 0.2 percent. Bahrain’s benchmark index gained 0.2 percent.

209 Iran faces shift in strategy from moderate Arabs Wednesday's meeting continues the process of inter‐Arab reconciliation that was launched by the Saudi king at the economic summit in Kuwait in January, analysts say. Divisions in the Arab world were brought to the fore during Israel's three week military offensive against Hamas in the Gaza Strip, which clearly pitted moderate countries like Saudi Arabia and Egypt against those who sided with the Islamist movement, such as Iran, Syria and Qatar.

A new Freedom House study examines women's rights in the Gulf States The title of the new Freedom House study sums up its major finding. It's called "Gaining Ground: Women's Rights in the Arab Gulf." Senior researcher Sanja Kelly says it updates a similar study the organization conducted five years ago in Bahrain, United Arab Emirates, Kuwait, Oman, Qatar and Saudi Arabia.

The Freedom House report follows up on a study conducted five years ago in Bahrain, United Arab Emirates, Kuwait, Oman, Qatar and Saudi Arabia. Some of the most visible changes for women have been made in Kuwait. Women there, she says, have gained many more rights and opportunities in terms of their economic empowerment.

Arab Women Gaining Rights in Gulf States Arab women in the Gulf States have made small but notable gains in the past five years, according to a new Freedom House study of women's rights in the region. The nongovernmental organization conducts studies and creates programs to promote freedom and democracy around the world.

There have seen 5 percent improvement in terms of workingwomen in Kuwait. In 2003, only 46 percent of workingwomen were employed, whereas now 51 percent of workingwomen in Kuwait are employed. Kuwaiti women have also made significant political gains. In 2005, after a three‐decade‐long struggle, Kuwaiti women finally won the right to vote.

210 Oman is another Gulf country where women have recently achieved basic rights according to journalist Rafiah Al‐Talei. She notes that despite ongoing discrimination, Omani women have still managed to make gains in higher education, the work force and the political arena. She herself was a candidate for Oman's Parliament in 2003 and lost by only 100 votes.

Women in other countries, notably Bahrain and the United Arab Emirates, are also enjoying new rights, says Sanja Kelly.

She says that while women in the UAE are still very restricted in terms of their political rights and civil liberties, the country has introduced a very limited voting process where women, for the very first time, were allowed to vote for elected bodies in the Federal National Council. This is especially true in Saudi Arabia, where women are still fighting to receive basic rights. Dr. Eleanor Doumato says the employment rate for women in Saudi Arabia is among the lowest in the world. Dr. Eleanor Doumato, a widely published expert on the country, says that while women in Saudi Arabia have made some progress over the past five years, they still have a long way to go.

SAUDI ARABIA

Social Desk

Cultural events on the rise in Saudi Arabia When word spread that Brazil was going to be the guest of honor at the Riyadh International Book Fair, a Saudi official had to reassure the public that the Brazilians wouldn't be dancing the Samba at the 11‐day event that opened recently. The question to Abdul Aziz Al‐Subeil, a senior Information Ministry official, at a news conference last week reflected the wariness with which cultural events are viewed by many here. For conservatives, book fairs, plays and movie screenings are a cause for concern because they allow for the mixing of the sexes, the playing of music and the introduction of books that they believe violate religious and moral values.

Still, despite the regular interruption of cultural activities by men who sometimes claim to belong to the religious police, there has been a marked increase in such events in the past few years. One of the most groundbreaking was a concert held by the German Embassy last year at a government‐run cultural center that broke many taboos in a country where public music is banned, public concerts are almost never heard of and the sexes are segregated even in lines at

211 fast food outlets. The other was the first Saudi film festival, held last year and attended by the information minister in a clear sign of official support for the event.

In a first this year, women have been given more access to the book fair, which opened Tuesday. In the past, female visitors were restricted to only two half‐days. Many hoped this move would correspond with less interference by the religious police to stop what they view as excessive mixing of the sexes. But well‐known columnist Haleema Muthaffar said she was shocked when the religious police stationed five security guards, six policemen and two religious police agents between her and the men and women who attended her book signing to prevent men from coming forward to have their books signed. She said the religious police detained three well‐ known Saudi writers for questioning after she tried to give one of them a signed copy of her book.

Many other conservatives have made headlines recently trying to stop the kind of cultural opening supported by many Saudis

Saudi columnists criticize signs of support for Sudan’s Bashir A number of prominent Saudi columnists have dissented from the popular view in that part of the world viewing the charges leveled by International Criminal Court (ICC) against Sudanese president Omer Hassan Al‐Bashir as part of a Western conspiracy.

“The regime in Sudan must admit the mistakes it committed and must realize that it is ignorant when it comes to understanding international system else he would not put himself in this corner” a columnists said before adding that Bashir should stand before the court to try and prove his innocence.

Similarly the editor in chief of Al‐Sharq Al‐Awsat newspaper Tareq Al‐Hamed echoed the same call in an article published today named ‘What does Islam has to do with Bashir?”. Al‐Hamed was responding to remarks made by Iran’s Parliament speaker Ali Larijani during his meeting with Bashir in which he said that the arrest warrant issued is an insult to Sudan and the Muslim world. “Are the people of Darfur not Muslims as well? Is it not an insult to Islamic Iran to accept this kind of injustice in Darfur” Al‐Hamed wrote.

212

The Saudi columnists also ridiculed Hamas Palestinian organization who warned Arab countries that their leaders could face the same fate of the late Iraqi president who was overthrown following a US led invasion and later prosecuted then executed. “What about the Iraqi victims of Saddam Hussein and what he did to Iraq all these years until he ended in his famous hole? What about his Arab victims?” he questioned. “The truth that should be told to president Bashir is that those who came to Khartoum kissing you and announcing that they are standing by you are the same people who pushed Saddam Hussein to commit mistakes” Al‐Hamed added.

Badriya Al‐Bashar, a Saudi female novelist said in the daily Al‐Hayat newspaper that Arabs accept international rulings from The Hague “only if it is in their favor”. “But if the decision came opposing to what we wished for we say ‘immerse it in water and drink it’” she added.

On Wednesday the ICC judges approved a request by prosecutor Luis Moreno‐Ocampo to charge Bashir on seven counts of war crimes and crimes against humanity, which include murder, rape and torture. The three‐judge panel said it had insufficient grounds for genocide.

Saudi raids 'break up drug gangs Saudi authorities say they have broken up four big drug smuggling operations and arrested 35 suspected drug dealers. Security forces seized more than 1,760kg of cannabis resin and more than 3m amphetamine tablets in raids across the country, officials said.

Saudi Arabia woman driver arrest A woman has been arrested in Mecca in Saudi Arabia for driving a car. Women are prohibited from driving on all public roads in Saudi Arabia, a ban that has triggered several high‐profile protests by women's rights activists.

The woman's name and nationality have not been announced. Only Muslims are permitted in the holy city of Mecca.

Still, King Abdullah is bidding to undermine Islamic hard‐liners

213 He recently dismissed a leading fundamentalist cleric and the head of the kingdom's religious police, Sheik Ibrahim Ghaith.

The monarch also removed Sheik Saleh Lihedan as chief of the country's highest religious tribunal. The man issued a fatwa in September saying it was permissible to kill TV executives for broadcasting "evil" and immoral programs.

Rising Criticism of Child Bride Marriages in Saudi Arabia The Saudi press has lately been discussing the custom of child bride marriage, especially cases of middle‐aged or elderly men taking prepubescent girls for their wives. The religious justification for this custom, which has been prevalent in Saudi Arabia and in many Muslim societies since the early Islamic era, is that the Prophet Muhammad married his wife 'Aisha when she was only six years old.

Saudi court sentences 75­year­old woman to lashes The sentencing of a 75‐year‐old widow to 40 lashes and four months in prison for mingling with two young men who were reportedly bringing her bread has sparked new criticism of Saudi Arabia's ultraconservative religious police and judiciary.

Khamisa Sawadi, who is Syrian but was married to a Saudi, was convicted and sentenced last week for meeting with men who were not her immediate relatives. The two men, including one who was Sawadi's late husband's nephew, were also found guilty and sentenced to prison terms and lashes.

Sawadi had told the court that she considered al‐Anzi is her son, because she breast‐fed him when he was a baby. But the court denied her claim, saying she didn't provide evidence. In Islamic tradition, breast‐feeding establishes a degree of maternal relation, even if a woman nurses a child who is not biologically hers.

Others have also spoken out against the case against Sawadi, accusing the religious police of going too far. "How can a verdict be issued based on suspicion?" Saudi doctor and columnist Laila Ahmed al‐Ahdab wrote in Al‐Watan on Monday. "A group of people are misusing religion to serve their own interests."

214 Last month, the Saudi king dismissed the chief of the religious police and a cleric who condoned killing of TV network owners that broadcast "immoral content" — as part of a shake‐up signaling an effort to weaken the kingdom's hard‐line Sunni Muslim establishment.

IR Desk

Tareen, Saudi finance minister discuss economic issues Finance Adviser Shaukat Tareen on Saturday called on Saudi Minister for Finance Dr Ibrahim Bin Abdul Aziz Al Assaf and discussed issues related to Pakistan’s economy. During the meeting, the two leaders discussed issues relating to Pakistan’s economic development and reforms and the role of the Saudi Development Fund in development projects in Pakistan. Trade and economic ties between the two countries were discussed at length. According to a press release by the Consulate General of Pakistan in Jeddah, Acting Ambassador of Pakistan to Saudi Arabia Sarfaraz Khanzada and the governor of Saudi Arabian Monetary Agency (SAMA) were also present. The adviser on finance would also meet the Islamic Development Bank head Ahmed Ali, the press release added.

Pak aide in ‘constructive’ talks with Saudi officials Senior Pakistani official Shaukat Tareen has held “constructive” talks with Saudi officials during his short stay in Riyadh and Jeddah.

Shaukat Tareen, financial adviser to the Pakistani prime minister, told reporters here on Sunday that his discussions with Saudi officials centered on providing economic and political stability to Pakistan. Tareen held talks with Dr. Ibrahim Al‐Assaf, Finance Minister, and Issa Bin Mohammad Al‐Issa, Saudi American Bank’s Managing Director and CEO, regarding delay in payment for oil and about the Saudi support for “Friends of Pakistan” conference set for next month. Tareen said his discussions also involved enhancing the volume of trade between the Kingdom and Pakistan especially the export of agricultural products such as rice, meat etc. to Saudi Arabia. “Pakistan can contribute in various fields in Saudi Arabia like manpower and skill development. Likewise, Saudi Arabia can open vocational training centers in Pakistan where Pakistani workers will get training in technical skills and language specifically to work in Saudi Arabia,” he said.

215 Sumitomo in Saudi silicon carbide venture Sumitomo Corp (8053.T) has reached an agreement to form a silicon carbide joint venture in Saudi Arabia, with most production to be shipped to Japan, the financial daily Nikkei said in its Tuesday edition.

The venture would build a plant in Jubail Industrial Park on Saudi Arabia's west coast at a cost of about 6 billion yen; the plant would be scheduled to start production in January 2011 at an initial level of 24,000 tons a year, or a little less than a fifth of Japan's annual demand of 13,000 tons.

Saudi 'disturbed' by Beshir arrest warrant Saudi Arabia said Monday it was "disturbed" by the arrest warrant for Sudanese President Omar al‐Beshir on charges of crimes against humanity and pledged to stand by Sudan over threats to its sovereignty.

"The council of ministers said the kingdom is concerned and disturbed by the International Criminal Court's decision to arrest his Excellency President Omar Hassan al‐Beshir," Information Minister Abdul Aziz al‐Khoja said following a cabinet meeting led by King Abdullah. “The kingdom will stand by Sudan in facing all that could threaten its sovereignty and territorial unity," he added.

The mini‐summit is part of King Abdullah's efforts to improve relations between the three Arab countries, an anonymous Saudi diplomat told The Associated Press on Tuesday. Saudi Arabia's official press agency said that Egyptian President Hosni Mubarak and Syrian President Bashar Assad will meet with the Saudi King on Wednesday, but did not specify whether they would meet together.

U.S. intelligence candidate pulls out after objections The Obama administration's candidate for a top U.S. intelligence post withdrew on Tuesday amid congressional objections over his past criticism of Israel and ties to China and Saudi Arabia.

216 The withdrawal of Charles Freeman, named to head the National Intelligence Council which produces formal U.S. intelligence assessments of security issues, is the latest personnel embarrassment for President Barack Obama as he struggles to staff his administration.

"Charles Freeman was the wrong guy for this position. His statements against Israel were way over the top and severely out of step with the administration," New York Democratic Senator Charles Schumer said in a statement. Freeman is a former ambassador to Saudi Arabia, who has also served as an assistant secretary of defense and a senior diplomat in China. He was also president of the Middle East Policy Council, a Washington think tank that received funding from Saudi Arabia.

Iranian Ayatollah Chides Saudi FM

A prominent Iranian cleric has criticized Saudi Arabia's foreign minister for his recent remarks about Iran.

During Friday prayers, Ayatollah Ahmad Khatami chastised Prince Saud al‐Faisal, saying his comments sounded like the foreign minister of Israel, Iran's arch‐foe.

The Saudi diplomat earlier this week called on his fellow Arabs to join together to confront what he termed the "Iranian challenge" posed by the non-Arab nation's nuclear program and its intentions pertaining to security in the Gulf. Ayatollah Khatami, in a sermon carried by Iranian state radio, said Israel is trying to "distract" Arabs. He added that Iran's nuclear program is an honor for the Islamic world.

Oil & Gas

Oil Advances on Signs OPEC Cuts are Depleting Crude Inventories Crude oil rose before a report forecast to show that U.S. stockpiles declined for a second week, reinforcing analysts’ views that OPEC output curbs are draining inventories.

The Organization of Petroleum Exporting Countries has lowered output three times since September to combat price declines and prevent a glut on world markets. Ministers will meet in Vienna on March 15. U.S. crude‐oil supplies probably fell 500,000 barrels last week, according to a survey before an Energy Department report this week.

217 Qatar’s oil minister said OPEC must comply fully with existing reduction agreements before making new ones. Saudi Arabia wants OPEC to comply with its existing output ceiling and opposes a further production cut, al‐Hayat newspaper reported, citing an unidentified person.

Saudi Aramco will reduce shipments to Japan in April for a fifth month, according to officials at three refineries that received notices.

Economic Desk

Arabtec sets up Saudi subsidiary DUBAI: Dubai's Arabtec Holding (UAE's largest construction firm) yesterday said it has set up a Saudi arm called Arabtec Saudi Arabia, with expected turnover in its first year of over 1.5 billion Saudi riyals ($400 million).

Human Rights/ Trafficking Desk

Sudan, North Korea among least free states: report Sudan, whose president has been charged with war crimes by the International Criminal Court, and North Korea are among the world's eight most repressive societies, a U.S. human rights body said Monday.

Close behind was a second group of nine countries with a similar level of political rights as the eight but scoring slightly better on civil liberties, including Belarus, China, Cuba, Saudi Arabia, Syria and Zimbabwe.

UAE Economic Desk

New source markets will make UAE financially strong: Euromonitor International The United Arab Emirates (UAE) are tipped by analysts to be in a strong position to recover from the global financial crisis. According to consumer market analyst, Euromonitor International, if the UAE shifts its focus to emerging tourism markets such as China and Brazil, they will have a new source of demand. “Real GDP (Gross Domestic Product) growth is expected to slow over

218 2009 with the region’s performance strongly linked to the Gulf and demand from China,” said Caroline Bremner, Global Travel and Tourism Manager, Euromonitor International.

UAE bank liquidity improves after emergency measures A series of counter‐measures taken by the UAE over in response to the global financial crisis has eased liquidity constraints at local banks but widened the deposit‐to‐loan gap, a key Saudi bank has said.

The Saudi American Bank (Samba) said there were signs that bank liquidity in the UAE has improved following decisions by the local and federal governments to inject massive funds into the local banking system. Samba was referring to a Dh50 billion emergency facility set up by the UAE Central Bank, the Dh70bn federal government deposit with banks and the Dh16bn capitalisation support for five banks in Abu Dhabi.

Trade, economic co­operation high on UAE­Armenia agenda The UAE has succeeded in diversifying its sources of income despite being one of the world's top oil exporters and is now in a position of economic strength, according to the Minister of Foreign Trade.

Speaking at an audience with the Armenian President Serzh Sargsian in Yerevan Sheikha Lubna Al Qasimi, Minister of Foreign Trade, said the UAE has very ambitious future development projects, including in the field of renewable energy, such as the initiative by the Abu Dhabi Future Energy Company to build the carbon‐free Masdar City.

Other UAE markets targeted to offset slowdown in Dubai THE DEPARTMENT of Labor and Employment (DoLE) said that it will be exploring other markets in the United Arab Emirates (UAE) to offset the slowdown in Dubai.

A MIGRANT WORKER rushes through an airport terminal to catch his flight. — JONATHAN L. CELLONALabor Secretary Marianito D. Roque told reporters that the department is currently going on marketing missions to the other UAE emirates in a bid to beef up deployment of overseas Filipino workers (OFWs).

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UAE a topper in ICT sector: TRA A report on the UAE’s performance in Information and Communication Technologies (ICT) sector laws, services, prices and growth ‐ released by the UAE Telecommunications Regulatory Authority (TRA) ‐ shows that the UAE is on the top of the list in several categories.

UAE best performing GCC market in February 2009 with over 6% gain Following a 10% loss in January, UAE markets gained more than 6% and were the best performing GCC market in February. Arabtec and DFM led the rally in Dubai ending the month higher by 32% and 43% respectively. Dubai listed real estate names also returned to the scene with Emaar and Union Properties gaining 5% and 15% respectively, while the banking sector’s performance was mixed as Emirates NBD lost 5% while Dubai Islamic Bank ended the month 18% higher.

UAE real estate market 'set to bounce back DUBAI: The UAE real estate market will bounce back within the next eight to 12 months, says a leading Dubai‐based real estate developer.

Memon Investments, has based its optimistic forecast on recent industry findings, which reflect a decline in the construction cost per square foot within the emirates by an average of 30 per cent since the onset of the economic crisis.

IR Desk

U.A.E. denies Israeli official visa for global trade summit The United Arab Emirates has refused to grant a visa to Israel's representative on the International Chamber of Commerce's Banking Commission for a conference in Dubai. The move comes only three weeks after the gulf state denied a visa to Israeli tennis star Shahar Peer.

Sarah Younger, the official, is also the manager of Bank Leumi's international trade section. She was meant to attend a meeting of the commission on the global financial crisis in Dubai

220 beginning Monday. The chairman of the ICC in Israel, Oren Shachor, requested the Foreign Ministry's intervention in the matter in an attempt to press the U.A.E. to reverse its decision.

UAE Men Take AGCC Cycling HonoursBy A Correspondent UAE men’s team produced an astonishing finish on the last day of the AGCC Cycling Championship claiming the top six places in the 140‐kilometre race in Manama, Bahrain, on Friday.

UAE won six medals — three gold, two silver and one bronze — in the six‐day championship. But despite their excellent performance in the men’s division, UAE failed to hold on to the overall title they won last year in Fujeirah. UAE gathered 17 medals — ten gold, four silver and 3 bronze at the time. But UAE’s superlative act on Friday was the talk on the last day as hosts, Bahrain, even could not match them. The championship was participated also by cyclists from Qatar, Saudi Arabia and Oman.

UAE Leads Gulf in Office Developments The UAE has 103 office developments underway worth a combined $10.62 billion, more than any other country in the Gulf Cooperation Council, a research report said on Saturday.

Approximately 50 per cent of these developments in the UAE are due for completion this year, while the rest are expected to be finished in 2010. Office projects worth $15.7 billion are progressing across the GCC, despite the global economic downturn.

UAE denies visa to Israeli bank rep The United Arab Emirates denied a visa to the chairman of Israel's International Chamber of Commerce.

Sarah Younger was denied a visa for a global bank conference scheduled to begin Monday in Dubai. Younger, the manager of Bank Leumi's international trade section, was invited to the conference as the Chamber of Commerce's Israel representative, Ynet reported. Some 50 participants were not able to get entry visas for the conference, the Jerusalem Post reported.

221

Social Desk

UAE women enter the third millennium with heads high: Sheikha Fatima WAM Abu Dhabi, March 08th, 2009 (WAM)‐‐HH Sheikha Fatima Mubarak, Chairwoman for UAE Women General Union and Supreme Chairwoman for the Family Development Foundation, said the UAE women have entered into the third millennium after obtaining the constitutional and political rights.

UAE gets committee to fight diabetes Humaid Mohammad Obaid Al Qutami, the Minister of Health in Dubai, has issued a ministerial decision reconstructing the national committee for fighting diabetes, the Ministry of Health announced in a press release.

The committee, chaired by Dr Ali Bin Shakr, will be responsible for following up the implementation of the national strategy for fighting diabetes in UAE in addition to updating the strategy and coordinating with competent authorities in GCC states, the world health organisation and other national and international bodies in this regard.

George Mason cuts UAE campus, cites cost As NYU builds its first satellite campus in the United Arab Emirates, George Mason University has announced the closure of its three‐year‐old campus there — one year short of graduating the site’s first group of students.

BAHRAIN

IR Desk

222 Morocco cuts ties with Iran over Bahrain Morocco has cut diplomatic links with Iran, the Moroccan Foreign Ministry said on Friday, after an outcry in the Sunni Muslim world over a statement by an Iranian official questioning Sunni‐ ruled Bahrain's sovereignty.

Rabat also criticised Iran for its efforts to spread its Shi'ite brand of Islam in Morocco, a move the ministry said it saw as threat to the North African country's moderate Sunni religious identity. "The Kingdom of Morocco has decided to break its diplomatic relations with the Islamic Republic of Iran beginning this Friday," the ministry said.

Bahrain grateful for Morocco's "brotherly, noble" positions Bahrain has expressed gratitude for Morocco's "brotherly and noble" stances, the Gulf country's news agency reported.

Bahrain Foreign Minister, Sheikh Khaled bin Ahmed bin Mohamed al‐Khalifa was reported to have made a phone call to his Moroccan counterpart, Taib Fassi Fihri, to voice his country's "gratefulness" to Morocco, under the leadership of King Mohammed VI, "for its brotherly and lofty positions, which offer full and unwavering support for Bahrain." The Bahraini FM also expressed "Bahrain's solidarity and total support for brotherly Morocco," and condemned “the acts committed by the Iranian diplomatic mission in Rabat."

U.S. firm to drill for new oil in Bahrain this year A U.S. energy major plans to explore for crude oil by late 2009. The U.S. firm Occidental intends to begin digging the first oil field in Bahrain in the fourth quarter of 2009.

The project has been part of an oil exploration deal that Bahrain has signed with Occidental and Thailand's PTT Exploration and Production.

Words alone won't defend Bahrain's sovereignty If you were to ask Ali Akbar Nateq Nuri, an adviser to Iran's supreme leader, Ayatollah Ali Khamenei, what the connection between Bushehr, Fars, Khorasan, Yazd, Qom and Bahrain is, he would respond that they are all provinces of Iran. Ask Hamad bin Isa al‐Khalifa and he will say

223 they are all provinces of Iran, except of course for Bahrain, which is a sovereign country of which he happens to be the king

Social Desk

Bahrain police fire rubber bullets at Shiite rally Witnesses say security forces in Bahrain have fired tear gas and rubber bullets at a crowd protesting the government's takeover of a stretch of coastline used by Shiite fishermen.

Bahrain's Shiite Muslims stage frequent protests fueled in part by economic disparities between their poorer community and the predominantly Sunni ruling elite. A member of the capital's city council who took part in Friday's demonstration says he was wounded. Sadiq Rabea says demonstrators were demanding the return of coastline south of the capital.

Mideast Bahrain Protest Injury Fires burn in front of rows of riot police vehicles Friday, March 6, 2009, in Sitra, Bahrain. Police used tear gas and rubber bullets to disperse residents protesting Defense Ministry reclamation of a coastal area previously open to fishermen and residents for military use. Opposition activists claimed many people were taken to area hospitals when police used ”overly aggressive measures.”

Man Sustains Head and Chest Burn Injuries in Bahrain Attack A Pakistani man sustained severe head and chest burns when masked men hurled Molotov cocktail at his vehicle when it was passing through the entrance to one of the disturbed villages in Bahrain in the late hours on Saturday.

A spokesperson for the interior ministry said in a statement that the man had to be pulled out from his burning car by security personnel. He is now receiving treatment at a hospital. The ministry spokesperson added that investigations had been launched to arrest those behind the terror attack and bring them to justice.

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Bahrain tourism push Culture and Information Minister Shaikha Mai bint Mohammed Al Khalifa will lead Bahrain's delegation to the International Tourism Bourse (ITB) in Berlin from tomorrow to Sunday.

Participants from more than 180 countries are expected to attend one of the world's largest travel trade shows held annually in Germany. Bahrain's delegation includes 14 participants from both the public and private sectors and representatives from tourism, travel and hotels industry. Shaikha Mai said the kingdom will showcase its cultural and heritage, pearl industry and tourist sites.

Human Rights /Trafficking Desk

Bahrain Authorities Back Global Hotline To Assist Trafficking Victims Sandeep Singh Grewal March 05, 2009 Manama‐ Bahrain government is working with global experts to set up an international hotline to assist victims of human trafficking.

The issue which is still in the infancy stage and was discussed during the Human Trafficking at crossroads Private‐Public Partnership conference which concluded this week. David Arkless, President of Manpower Inc. a world leader in the employment services industry said, " I am working with International Telecommunications Union(ITU) and British Telecom for the helpline. The basic idea is to set up a toll‐free number worldwide for trafficking victims."

Bahrain’s Journalist Faces Trial for Criticising CourtsSuad Hamada A popular female columnist of Bahrain will be the first journalist to be tried under the penal code law instead of press law since the kingdom launched political reforms in 2002.

225 Lamees Dhaif shocked the journalism community last week when she announced about a legal case filed by judicial authorities against her for writing a series of columns criticising courts and demanding speedy implementation of the family law to stop humiliation of women at Shariah Courts.

Drop Charges Against Rights Defender “Speaking out harshly against a country’s rulers should not be a crime. A government that claims to be promoting democracy and human rights, as Bahrain does, shouldn’t be putting people in jail for what they say and write.”

Joe Stork, deputy Middle East director at Human Rights Watch(New York, March 11, 2009) ‐ Bahraini officials should promptly drop the charges against the former president of the Bahrain Center for Human Rights, Abdul Hadi al‐Khawaja, and lift a travel ban against him, Human Rights Watch said today. Khawaja faces up to 10 years in prison on charges of "instigating hatred and disrespect" of the government following a speech he made on January 7, 2009.

Dangerous Facts about the National Security Apparatus The Bahrain Center for Human Rights (BCHR) expresses again its deep concern regarding the mounting dangerous role of the National Security Apparatus (NSA) at the expense of liberties and human rights in Bahrain. A list which the BCHR has obtained reveals that amongst the more than 1000 employees working for the NSA, 64% of them are non‐citizens, mostly of Asian nationalities. The king’s relatives occupy the highest posts in the NSA; Sheikh Khalifa bin Abdulla Al‐Khalifa heads it, in addition to three others from the King’s family.

Labor Desk

Task force idea to raid illegal Bahrain labour camps An inspections team could be set up to raid illegal labour camps in Bahrain. (AFP)A task force could be established next month to carry out raids on unlicensed labour camps in Bahrain.

The inspection team would support the checks of registered camps already made by the Labour Ministry and would have the power to fine landlords who endanger the safety of their tenants.

226 It would consist of representatives from a host of government bodies and has been proposed by Central Municipal Councillor Adnan Al Malki.

Oil & Gas

Noga plans output boost Bahrain is planning to increase oil and gas production, it was revealed yesterday.

The National Oil and Gas Authority (Noga) said it will introduce development plans to raise output at the 77‐year‐old Bahrain Oil Field. The total production at the field last year was 12.027 million barrels, at a daily rate of 32,861 barrels, against 12.552m barrels in 2007.

Economic Desk

Bahrain's Takaful sector to witness steady growth Nexus, the region's leading financial adviser, and Solidarity Family Takaful, launched a joint marketing agreement for Takaful product in Bahrain, designed to provide clients with a Sharia‐ compliant opportunity to protect wealth for the future.

Demand for Takaful products ‐ products which are compliant with key Islamic tenets and based on the concept of shared responsibility ‐ in the Middle East has increased sharply in recent months, with clients appreciating the benefits of the transparency and security of such products, as well as their adherence to Islamic ethical expectations.

Bahrain sets up panel to settle big­value disputes The panel will deal with disputes concerning financial institutions licensed under the law governing the Central Bank of Bahrain (CBB), pictured.Plans to set up an arbitration centre in Bahrain to settle big‐value commercial disputes have been given the go‐ahead.

227 Bahrain's Cabinet on Sunday gave its backing to the new panel which will be named the Bahrain Chamber for Settling Economic, Financial and Investment Disputes. "It will be legally authorised to deal with disputes exceeding BD500,000," Cabinet Affairs Minister Sheikh Ahmed bin Ateyatala Al Khalifa said in comments published by Gulf Daily News on Monday.

Gulf states need to revist FX union date Gulf Arab oil producers, including Saudi Arabia, have to revisit their 2010 target for monetary union, Bahrain's central bank governor said on Thursday.

"We will have to revisit this timing," Rasheed al‐Maraj told reporters on the sidelines of a conference in Dubai. Asked if Bahrain was still vying to host a regional central bank, he said the issue required further discussion.

Bahrain signs up to $1.2bn GCC power project Bahrain has signed up to an agreement to establish a GCC power grid. (Getty Images)Bahrain has followed Saudi Arabian in signing up to an agreement to establish a GCC‐wide power grid.

The deal will allow Bahrain to exchange power with other member countries once the first phase of the grid goes live in May, officials said. The power plan, which aims to give member states access to floating power capacity in the region consists of a North Grid ‐ Bahrain, Kuwait, Saudi Arabia and Qatar ‐ and a South Grid connecting the UAE and Oman, Bahrain's Works Minister Fahmi Al Jowder said in comments published by Gulf Daily News on Thursday.

228 KUWAIT

Social Desk

‘Pct of Kuwait women ministers higher than many bigger states The Inter‐Parliamentary Union (IPU) on Thursday said the percentage of women in ministerial positions in Kuwait is higher than that in many much bigger countries. According to a 2008 analysis, that percentage is higher than in Egypt, Syria, Lebanon, Saudi Arabia, Turkey, Iran or Pakistan. Rwanda still tops the list of 142 countries, followed by Sweden and Finland, where women representation in their respective parliamemts is the highest — 40 to 50 percent. The US ranked number 71 and Cuba ranked number 10. Although Kuwait was among the countries where women in parliaments are least represented, it was ranked before Yemen, Oman, Qatar and Saudi Arabia.

Kuwait’s Awqaf plays major role in promoting moderation’ Kuwait’s Ministry of Awqaf has played a major role in confronting negative phenomena in the Islamic societies and promoting moderation and dialogue, a Kuwaiti official affirmed here on Sunday. Dr Adel Al‐Falah, Ministry of Awqaf and Islamic Affairs Undersecretary, said in remarks to KUNA on sidelines of his participation in the 21st Annual Conference of the Higher Council for Islamic Affairs, that the department has exerted efforts for the promotion of moderate Islamic thoughts in line with guidelines, set by His Highness the Amir, Sheikh Sabah Al‐Ahmad Al‐Jaber Al‐Sabah, to transform Kuwait into an international minaret for spread of principles of moderation for sake of social stability.

Kuwait Crime News The security authorities in Oman have handed over to Kuwait, a Kuwaiti citizen identified only as HA, who had been arrested by the Omani security authorities in connection with forging Kuwaiti and US currencies, reports Al‐Rai daily quoting security sources.

Foreign Labor Desk

Kuwait could deport 11,000 expats’

Kuwait will deport 11,000 expatriate workers after the issuance of a decision to close files of sponsors involved in human trafficking and establishment of illusory companies, reports Al-Qabas daily quoting a reliable source from the Ministry of Social Affairs and Labor. According to the source, the ministry has prepared a comprehensive report about

229 the human trafficking cases in Kuwait, ahead of the US State Department Trafficking in Persons (TIP) Report, which will be released by the middle of this year.

Nuclear Energy Desk

Kuwait eying nuclear energy option Mr Naji Al Mutairi GD of Kuwait Institute for Scientific Research announced that his company is working with global chiefs on a nuclear energy project for the Gulf state.

Mr Al Mutairi said that Kuwait is working with the International Atomic Energy Agency on executing a project for using nuclear energy for peaceful purposes and on plans to deal with radiological disasters. Already, the UAE and Qatar have signaled their intentions to begin a nuclear energy program to help them meet future power demands. The institute was implementing its sixth strategic plan entitled New Development Opportunities and Challenges whose aims were derived from Kuwait's plans for economic and social development.

IR Desk

UCU­Kuwait honours 'Voice of Goa 2008'

Kuwait, March 8, 2009: The winner of 'Kingfisher Voice of Goa 2008' singer Keith Jack Antao was honoured by United Club of Utorda‐Kuwait for his great achievement, on 6th March 2009 in Kuwait City. Keith is on a short family visit to Kuwait. On behalf of the Utodd'dekar villagers, Konkani poet and writer, Nakhas Borkar congratulated Keith Antao for achieving this success and making his fellow Utodd'dekars proud and put forth his plans to Keith to organize special music classes in Utorda to promote this very precious talent which God has blessed in abundance.

Vietnamese PM starts tours to Qatar and Kuwait PM Nguyen Tan Dung, his spouse and a high‐ranking delegation of the Vietnamese Government on March 7 afternoon left Hanoi for official visits to Qatar and Kuwait at the invitations of Qatari PM Hamad Bin Jasim Bin Jabir al Thani and Kuwaiti PM Nasir Al‐Mohammed Al Ahmed Al Sabah.

230

The visits aim at further strengthening and expanding political and diplomatic relations, so as to create a favorable foundation for the development of multifaceted cooperation with these two countries.

Qatar and Kuwait are two countries with economic strength and big oil reserve. These are the first visits made by the Vietnamese PM to the State of Qatar and the State of Kuwait since Vi t Nam and the two countries established diplomatic ties.

Oil & Gas

The SPC is Kuwait's highest oil policy‐making body.

March 10 (Bloomberg) ‐‐ Proposed legislation prompted by legal hurdles facing a lawsuit against a Kuwaiti company over an Army officer’s accidental death would make it easier for U.S. citizens to sue some foreign companies in this country.

Foreign companies that accept U.S. government contracts would be required to accept American court jurisdiction over disputes arising from the contract, under a measure introduced by Senator Claire McCaskill, a Missouri Democrat.

Sandstorm halts Kuwait's oil exports

A Kuwaiti oil official said Tuesday that oil exports were suspended for less than two hours because of sandstorm. The temporary halt did not affect Kuwait's commitments to its clients. Mohammed al-Ajmi, spokesman for the state-owned Kuwait National Petroleum Co., said operations resumed at the country's three ports after the sandstorm subsided.

Fierce sandstorms in Kuwait, Saudi Arabia disrupt oil exports, air traffic Fierce sandstorms in the gulf states of Kuwait and Saudi Arabia Tuesday disrupted oil exports and forced seaports and airports to close.

Visibility was blurred at the international airports in Riyadh, capital of Saudi Arabia. The city's harbor was shut down and incoming flights to King Khalid International Airport were being diverted to Damman in the east and Jeddah in the west, as the storm raged for several hours.

231 Economic Desk

The development sent shares in both companies soaring.

Dow last year agreed to buy Rohm for $18.8 billion including debt. It later sought to delay the deal, which had a Jan. 27 closing deadline, citing the global financial crisis and the collapse of a joint venture with Petrochemicals Industries Co. of Kuwait that was to have helped Dow fund the deal.

Kuwait's Equate profits down 11.18% in 2008 Kuwait's Equate Petrochemical Co., which is partnered with Dow Chemical Co., says its 2008 profits were down 11.18 percent, but it has not been "largely" affected by the worldwide drop in demand.

The company said in a statement Sunday it recognizes global crisis would make for a tougher year and has implemented "strategic cost cutting programs" which would not affect employee benefits. Equate said it made $683 million in net profits last year, compared to $769 million in 2007. However, it says its total sales in 2008 were 5 percent higher, at over $1.21 billion.

OMAN

Economic Desk

Oman reports record fiscal surplus in 2008 Strong oil prices allied with higher crude output to boost Oman's fiscal surplus to a record high level in 2008 despite a sharp increase in actual expenditure, the Central Bank of Oman (CBO) reported yesterday.

The budget surplus totalled around RO1.58 billion (Dh15.2bn) and officials said it would allow the government to boost its reserves and cut debt. But it was sharply lower than the surplus during the first 11 months of 2008, when it exceeded RO1.8bn. The decline was apparently caused by lower oil prices in December and the Gulf country push to support its State Reserve Fund by chopping off part of its oil revenues.

232

QATAR

Social Desk

Occupational healths care a big challenge in Qatar It is still a big challenge for occupational health nurses to attend to the health and well‐being of hundreds of thousands of workers from different nationalities in Qatar, according to a consultant physician of the Ministry of Health.

Foreign Labor

Saudi, Qatar, Libya still hiring Filipinos As the world economy shrinks, so does the need for migrant workers. But recruiter Loreto Soriano, executive director of the Federated Associations of Manpower Exporters Inc., said the Kingdom of Saudi Arabia, Qatar, and Libya are still hiring overseas Filipino workers.

Soriano, who also owns the LBS E‐Recruitment Agency, said these three countries in the Middle East can provide sustained OFW employment, but not enough to counter the job cuts around the world.

Pinoys in Qatar look for fallback jobs to survive crisis Many Filipino overseas workers in Qatar are acquiring new skills to prepare themselves should the global economic crisis worsen in Qatar.

Domestic helper Fatima Usop decided to get a sideline to help the family. Usop is into direct‐ selling business of a clothing brand. "Ako'y nagtitinda ng Natasha. Pumasok ako para magpa‐ member ng Natasha para makatulong sa asawa ko. Syempre, dapat tayong magtulungan,” Usop said.

233 IR Desk

Indonesian Embassy to be open in Qatar The Consular Section and Labour Office of the Indonesian Embassy in Qatar will be open tomorrow from 8.30am to 12 noon to cater to people who need to get various documents processed but get time for this only on their day off.

Qatar­Vietnam trade ties get a boost Mohammed bin Towar Al Kuwari, Executive Committee Member, Qatar Chamber of Commerce and Industry, presenting a memento to Vietnamese Prime Minister Nguyen Tan Dung, during the Qatar‐Vietnam Business Forum held yesterday. (ABDUL BASIT)

DOHA: The signing of a number of Memoranda of Cooperation between Vietnamese and Qatari companies highlighted the second day of the four‐day visit of the Vietnamese delegation headed by Prime Minister Nguyen Tan Dung.

Qatar, Ukraine hold political consultations Qatar and Ukraine today held here political consultations at the Ukrainian Foreign Ministry. The consultations session was chaired by Qatar's Assistant Foreign Minister for Follow‐Up Affairs H.E. Mohammed bin Abdullah al Rumaihi and the Ukrainian Deputy Foreign Minister.

The Talks between the two sides covered a number of agreements between the two countries in the fields of investment, tourism, education, health, air transport in addition to signing a memorandum of understanding (MoU) for cooperation between the the two countries'' foreign ministries. Discussions also dealt with bilateral relations in economic spheres, regional and international issues as well as setting up of the Qatari‐Ukrainian friendship society. H.E. al Rumaihi also met a number of senior Ukrainian officials.

Nation to build multilateral co­operation with Qatar Viet Nam considers Qatar an important partner in the Gulf, Prime Minister Nguyen Tan Dung told Qatari Prime Minister Hamad Bin Jassem Bin Jaber Al‐Thani at a meeting in Doha yesterday.

234 PM Dung, who is on a three‐day visit to Qatar that ends today, said that multi‐faceted co‐ operation and relations between the two countries, especially in economy, were experiencing concrete, positive developmental steps since the Qatari Prime Minister’s previous visits to Viet Nam. They had aimed to turn the two countries’ cooperation potential into a reality for the common interest of the two peoples, he added.

Qatari minister: second round of Darfur talks to start in three weeks Qatari Minister of State for Foreign Affairs Ahmed Abdullah al‐Mahmoud Tuesday said the second round of talks on Darfur peace is expected to start within the next three weeks in Doha.

Al‐Mahmoud made the remarks to reporters following a meeting with the African Union and United Nations joint chief mediator forDarfur Djibril Bassole and the representatives based in Doha of the Sudanese government and the Justice and Equality Movement (JEM), one of the main rebel military organizations. The minister stressed the JEM's commitment to continuing its negotiation with the Sudanese government in order to find a permanent solution to the Darfur issue.

Qatar, Albania sign pacts to boost ties

Qatar and Albania yesterday reiterated their resolve to strengthen relations in all fields, especially in the economic sector.

Addressing a joint press conference with Prime Minister and Foreign Minister HE Sheikh Hamad bin Jassim bin Jabor al‐Thani, the visiting Albanian Prime Minister Sali Berisha said his country might get a loan from Qatar for infrastructure development. The Qatari premier said that the visit of the Albanian leader further strengthened the strong relations between the two countries.

Human Rights/ Trafficking Desk

235 Qatar Begins Human­Trafficking Awareness Campaign The Gulf state of Qatar has vowed to tackle the problem of human trafficking. A new anti‐ trafficking campaign began after a U.S. State Department report claimed Qatar was a destination country for traffickers.

Qatar has launched a human trafficking awareness campaign to highlight the threat of forced labor and abuse to the country's legion of foreign workers. A member of the National Human Right Committee, Mohammad Fouad, says the campaign hopes to reach migrant workers and local Qataris.

Oil & Gas

China to import more LNG from Qatar A senior official with China's largest state‐own gas company said here Saturday that China planned to import more liquefied natural gas (LNG) from Qatar in the coming years to feed the huge demand of domestic market.

Fu Chengyu, general manager of China National Offshore Oil Company (CNOOC), said in the opening ceremony for CNOOC's office in Doha that his company has secured LNG supply of 13 million tons a year up to date coming from the locally produced and import from Russia and Kazakhstan.

Qatar gas need ‘ever present’ No impact of global downturn on Qatar’s LNG industry.

Qatar has the “flexibility” to reach liquefied natural gas to any market where there is demand, chief economic advisor to the Emir, Dr Ibrahim B Ibrahim has said. “We are developing our capabilities to produce 77mn tons within a year or two. We have our own ships to ferry our LNG cargoes to markets worldwide,” Dr Ibrahim told Gulf Times in Doha.

236

BUSINESS AND POLITICS IN THE MUSLIM WORLD

SOUTH EAST ASIA

Tatheer Zahra Sherazi Monitoring Report From 6 March to 13 March

• Indonesia Political Front

• Myanmar PM to visit Indonesia, Singapore • Indonesia receives grants for elections • 'Obama Snacks' To Be Outlawed? • IT body to assist Indonesian general election this year • Indonesian President's Party Ahead In Polls • Indonesian voting change aims for cleaner politics • Workers prepare ballot boxes before distributing them to districts in Surabaya, • NO PANACEA FOR GRAFT Strategic Front

• Indonesia inaugurates 1st defense university Economic Front

• Islamic Development Bank to fund textile projects in Pakistan • East Asia's economic revenge • Seoul and Jakarta seek co-operation on financial crisis • UPDATE 2-Indonesia buys 3.7 mln bbls May crude, seeks more • Indonesia polls lack monitors’ • Forum calls for growth of Islamic finance • Indonesian president urges banks to cut rates • Official: Indonesia's industry to grow by 3.5% this year Social Front

237 • Indonesia Cracks Down on Offensive Hot Spot • Indonesia’s New Anti-Porn Agenda • MUHAMMADIYAH CALLS ON ISLAMIC WORLD TO FORM SOLIDARITY NETWORKS .

Environmental Front

• Java on highest volcano alert • Malaysia Political Front

• Anas rallies Malaysians to make politicians wake up to the real deal • Malaysia clears top figures in Anwar beating • Political impasse affecting Perak’s economy(economic) • Parallels between Razak and Najib • Movement 'not controlled by opposition parties' • Batang Ai by-election candidate to be revealed on Saturday • Umno corrupt: survey Strategic Front Economic Front

• Sabah, Sarawak pin hopes on stimulus plan • Malaysia to build budget air terminal • Palm Oil May Drop 23% on Higher Supply, Analysts Say (Update1) . • Foreign investors seen staying in KL bourse Social Front

• Face obstacles as one, Muslims told • Employers urged to review salaries of locals Environmental Front

• Philippine

Political Front

• Philippine Army-based coop holds first automated elections • Daughter of NPA leader found dead • Mindanao rally to urge talks resumption • MILF harboring Abu Sayyaf, says AFP official(Social) • Military to reduce insurgency to ‘irrelevance’ • Arroyo signs law claiming islands Strategic Front

• China in disupute with Malaysia, Philippines over Island

238 • Philippines enacts territorial law protested by China, Vietnam amid disputes over islands Economic Front

• EDITORIAL: Domestic borrowing and fiscal reforms • Global fiscal losses hit $50tr, ADB says • ADB: Global crisis slashed $50-T from financial assets in 2008 • Philippines expects bigger rice harvest amid global crisis • Consumer confidence up in Philippines amid global crisis Social Front

• UK 'behind the Philippines on workplace equality' • Female Migrants From Asia At An Increased Risk Of HIV, U.N. Report Says • Philippines closely monitoring immigration case in Japan(Strategic,Social) Environmental Front

• Thailand Political Front

• Thai premier faces impeachment complaint • Thai PM confident of answering all impeachment charges • Thai PM, ministers face no-confidence motion • ASEAN to be held at luxury beach resort Strategic Front Economic Front

• Thai economy comes under further downward pressure from the global recession, • Economic crisis causes thousands of Burmese migrants to lose jobs (Social) Social Front

• Thai minister meets UN on refugees • Thai FM meets UN on Rohingya refugeesMarch 7, 2009 . • Thailand: Resolve ‘Disappearance’ Case Environmental Front

• Singapore

Political Front Strategic Front

• Singapore, Indonesia to sign maritime boundary agreement Economic Front

• Singapore shares near six-year low • 26% increase in Singapore's dengue cases in first 9 weeks of 2009

239 • Singapore must be ready for post-crisis order • President Nathan takes final step to allow govt to draw on reserves(pol) • MM Lee urges new citizens to pull together with Singaporeans • S'pore family businesses have strong values to ride out economic crisis Social Front Environmental Front

• Vietnam Political Front Strategic Front Economic Front

• Vietnam keen to strengthen trade relations • Sri Lanka can be bridge to trade with South Asia -Vietnamese PM • Vietnam, Singapore cooperate on e-government strategy • Vietnam: a casualty of the crisis Mar 13, 2009 • Seminar fosters Vietnam-EU economic cooperation • Vietnam Increases Import Tariff For Dairy Products, Qatar, Vietnam in talks over $1bn fund

Social Front

• Viet Catholics look to revive evangelization efforts (Subscribe to RSS Feed) Environmental Front

• Int'l organization helps Vietnam in biosphere protection • Laos Political Front

• Thai Princess calls on Lao President • Laos-Vietnam National Assemblies establish close ties Strategic Front

• Vientiane to construct new road links Sayaboury Economic Front

• Hungarian Government gives Laos loan for agriculture • ADB Water Project to Ease the Strain on Women in Lao PDR • Laos confirms SEA Games events(Social) • Japan gives money to build a gymnasium to Laos(strategic,Socuial) • Laos, Thailand to boost power and energy cooperation(Eco,St,) Social Front Environmental Front

240 • Champassak to be the host of ASEAN+3 environmental meeting • Cambodia Political Front

• PP election a two-cart race • SRP worried by councillor delays Strategic Front

• Unesco official calls for more border talks Economic Front

• Progress made on energy training: Govt • 'Slow' development of island resorts to be completed by 2015: official • Crisis threatens poverty reduction • SMEs seen as key to growth • Diversify economy, says PM Social Front

• Tamil group not a threat in Cambodia • Temple Watch: Wat's in a name • ASEAN failing on human rights

Environmental Front

• Brunei Political Front

• Security, Agriculture, Education Likely To Top LegCo Agenda • 'Do not rely on govt to provide employment' • 5th Legislative Council Session Begins Today Strategic Front Economic Front

• drug smuggling syndicates(social) Social Front Environmental Front

241

Summary

This week there are mixed type of news in south East Asia because of many ups and downs in at political, economic and social front.

At political front In Indonesia parliamentary elections are going on ,it has get 20.2 million U.S. dollars grants from multilateral and bilateral schemes to assist the country's parliamentary and presidential polls later this year,. The Indonesian Technology Evaluation and Implementation Body (BPPT) will help the General Election Commission (KPU) by providing information technology (IT) service in this year's general election. Till now Indonesian President Susilo Bambang Yudhoyono's Democratic Party is leading its rivals ahead of elections next month according to an opinion poll.

But there is also criticism on these direct elections. Critics say that holding direct elections for members of parliament is unlikely to eliminate graft -- candidates will simply hand out bribes to voters instead of the party to secure their places in parliament.

In Malaysia Respondents also describe country's most powerful political party as out of touch UMNO has received a slap in the face just ahead of its key annual meeting, with many voters polled in a survey seeing Malaysia's biggest political party as corrupt and out of touch with the ground.

In Philippine Peace advocates in Mindanao will assemble at various points regionwide on March 18 to call again for the resumption of peace talks between the government and the Moro Islamic Liberation Front

In Thailand, Thailand’s leading opposition party the Puea Thai Party filed on Wednesday morning an impeachment motion against Prime Minister Vejjajiva to Senate President Prasobsook Boondech, for a debate in the House. Abhisit is confident he will be able to answer all of the impeachment charges filed against him by the opposition parties.

242 In Cambodia AMONG the four parties approved to compete in the upcoming May 17 council elections, just two parties - the ruling Cambodian People's Party and opposition Sam Rainsy Party - will compete for seats on 's municipal council,

At Geo-Strategic Front

In Philippine President Gloria Macapagal Arroyo has signed into law a bill defining the country’s territorial boundaries and laying claim to disputed areas in the South China Sea, a top aide said yesterday.

Cambodia THE chairman of UNESCO's executive board expressed support Wednesday for further discussions between the Cambodian and Thai governments related to the dispute over Preah Vihear temple.

At Economic Front The Islamic Development Bank is willing to finance up to 65 percent of a textile project in Pakistan, so said the President of the Bank, Mr Iftikhar Malik at the just concluded 5th Islamic Economic Forum in Jakarta, Indonesia.

South Korean President Lee Myung-bak (pictured) called yesterday for closer co- operation with Indonesia to help counter the impact of the global financial crisis on two of Asia’s biggest economies. Both nations have been suffering, with exports diving in the region this year.

Indonesian President Susilo Bambang Yudhoyono Tuesday asked the country's banking industry to drastically cut interest rates for lending, so as to ease business costs, spur loan demand from consumers, and push forward economic growth

Indonesia's industry is forecast to grow at a slower pace of between 2.5 to 3.5 percents this year due to the fallout of the global recession.

In Malaysia Palm oil futures may tumble as much as 23 percent this year because of lower energy prices and increasing vegetable oil supplies, according to analyst forecasts at an industry conference in Kuala Lumpur.

In Philippine, consumer confidence on the local economy has improved thanks to expectations of lower oil and food prices, the country's central bank said.

In Thailand, As the Thai economy comes under further downward pressure from the global recession, reports warn that the hardest hit from the downturn are the rural and urban poor.

243 Qatar and Vietnam, pictured, are in talks over setting up a $1bn fund.Qatar and Vietnam are in talks about setting up a $1bn fund to invest in sectors including agriculture and tourism,

In Cambodia Efforts to halve poverty by 2015, one of Cambodia's nine Millennium Development Goals could by stymied by low or negative economic growth and a lack of rural resources.

At Social Front

Philipine,Female migrants from Asia have become "highly vulnerable" to HIV during the global financial crisis, according to a United Nations Development Programme report released in Manila

Thailand's foreign minister Kasit Piromya met the United Nations' refugee chief to discuss the plight of migrants from Burma washing up on its shores.

Singapore's Minister Mentor said new citizens must pull together with Singaporeans to adjust to changes in the world economy.

At Environmental Front

INDONESIA has raised its volcano alert for Mount Semeru in East Java to maximum, warning of potentially dangerous lava flows, the head of the country's volcanology center said yesterday.

The Summary of News items is below: • Indonesia Political Front

• Myanmar PM to visit Indonesia, Singapore The prime minister of military-ruled Myanmar will make official visits next week to Southeast Asian neighbors Indonesia and Singapore, just two weeks after the three countries' leaders met at a regional summit.

• Indonesia receives grants for elections Indonesia has get 20.2 million U.S. dollars grants from multilateral and bilateral schemes to assist the country's parliamentary and presidential polls later this year, the Jarkata Post reported Saturday.

• 'Obama Snacks' To Be Outlawed?

244 The snacks, which some want to ban as demeaning to the prez, are especially popular in Indonesia because Obama, his mother, and his Indonesian stepfather lived in Jakarta for four years. Obama was not born in Indonesia, however.

• IT body to assist Indonesian general election this year The Indonesian Technology Evaluation and Implementation Body (BPPT) will help the General Election Commission (KPU) by providing information technology (IT) service in this year's general election.

• Indonesian President's Party Ahead In Polls Indonesian President Susilo Bambang Yudhoyono's Democratic Party is leading its rivals ahead of elections next month, an analyst said Thursday, citing a new opinion poll.

• Indonesian voting change aims for cleaner politics For the first time, candidates that win Indonesia's April 9 parliamentary elections will be the ones that actually become the MPs, a step towards more effective legislation and greater accountability among legislators.

• Workers prepare ballot boxes before distributing them to districts in Surabaya, Such change is badly needed, given parliament's reputation for corruption and its poor track record in passing key legislation -- factors that have deterred investors and curbed the growth and development of Southeast Asia's biggest economy.

• NO PANACEA FOR GRAFT Critics say that holding direct elections for members of parliament is unlikely to eliminate graft -- candidates will simply hand out bribes to voters instead of the party to secure their places in parliament. Strategic Front

• Indonesia inaugurates 1st defense university Indonesian President Susilo Bambang Yudhoyono on Wednesday inaugurated Indonesian Defense University (IDU), the first of its kind in the country, at the State Palace, the Jakarta Post reported.

Economic Front

• Islamic Development Bank to fund textile projects in Pakistan The Islamic Development Bank is willing to finance up to 65 percent of a textile project in Pakistan, so said the President of the Bank, Mr Iftikhar Malik at the just concluded 5th Islamic Economic Forum in Jakarta, Indonesia.

• East Asia's economic revenge

245 Following the 1997 financial crisis, Asia got screwed by the US-led IMF. With the housing bubble, Asia returned the favour

• Seoul and Jakarta seek co-operation on financial crisis South Korean President Lee Myung-bak (pictured) called yesterday for closer co- operation with Indonesia to help counter the impact of the global financial crisis on two of Asia’s biggest economies. Both nations have been suffering, with exports diving in the region this year.

• UPDATE 2-Indonesia buys 3.7 mln bbls May crude, seeks more Indonesia's Pertamina bought a hefty 3.7 million barrels of crude for May, the highest since September 2007, and issued another tender seeking more sweet grades to boost stockpiles, a company source and traders said on Friday.

• Indonesia polls lack monitors’ Volunteers sort ballot papers in preparation for the upcoming parliamentary elections at a subdistrict office in Jakarta yesterday

• Forum calls for growth of Islamic finance Islamic finance and banking must be developed as an alternative to the discredited Wall Street model of doing business, the World Islamic Economic Forum resolved as it wrapped up Wednesday in Indonesia.

• Indonesian president urges banks to cut rates Indonesian President Susilo Bambang Yudhoyono Tuesday asked the country's banking industry to drastically cut interest rates for lending, so as to ease business costs, spur loan demand from consumers, and push forward economic growth, the Jakarta Post reported on Wednesday.

• Official: Indonesia's industry to grow by 3.5% this year Indonesia's industry is forecast to grow at a slower pace of between 2.5 to 3.5 percents this year due to the fallout of the global recession, an senior official said Wednesday. Social Front

• Indonesia Cracks Down on Offensive Hot Spot Indonesian hipsters looking for a place to chill in steamy Jakarta didn't have to look much further than the Buddha Bar. Last year, the posh establishment opened as the first Asian branch of an international chain with outlets everywhere from Paris and Cairo to Kiev and Sao Paulo. But on March 10, the Jakarta Legislative Council ordered the nightspot shuttered because its use of religious iconography could be considered offensive to Buddhists. In addition to its religiously inspired name, the restaurant's dining area is dominated by a giant Buddha sitting in the lotus position.

246 • Indonesia’s New Anti-Porn Agenda The decision is just the latest religious controversy to make headlines in Indonesia in recent months. About 90% of the sprawling archipelago is Muslim — the world's largest Islamic population — but significant Hindu, Christian and animist communities live in places like Bali, Sulawesi and Papua. Despite the country's constitutional commitment to freedom of faith, religious minorities have complained in recent years of a creeping Islamization that they believe has strained Indonesia's social fabric.

• MUHAMMADIYAH CALLS ON ISLAMIC WORLD TO FORM SOLIDARITY NETWORKS Muhammadiyah, Indonesia's second largest Islamic organization, ended its four-day meeting here on Sunday with a call on Islamic countries to build concrete solidarity networks to handle conflicts and poverty in predominantly Muslim countries.

The organization also called on Muslims all over the world to increase their solidarity with their fellow Muslims who are falling victim to oppression like in Palestine, Irak and Sudan. Environmental Front

• Java on highest volcano alert INDONESIA has raised its volcano alert for Mount Semeru in East Java to maximum, warning of potentially dangerous lava flows, the head of the country's volcanology center said yesterday. • Malaysia Political Front

• Anas rallies Malaysians to make politicians wake up to the real deal On this first anniversary of Malaysia’s political tsunami, businessman Anas Zubedy has a dream.

• Malaysia clears top figures in Anwar beating Malaysia Wednesday cleared two top officials of allegations of manipulating evidence relating to a infamous beating inflicted on opposition leader Anwar Ibrahim in 1998.

• Political impasse affecting Perak’s economy(economic) Although the Perak government had stated that the state’s investment climate remained robust, manufacturers here said the state’s month-long political gridlock is further worsening its economic health.

• Parallels between Razak and Najib

247 TOWARDS the end of one of his meetings with editors a few weeks ago, Datuk Seri Najib Razak was casually asked how he felt about his impending ascension to the prime ministership with the country going through such a turbulent time.

• Movement 'not controlled by opposition parties' (*social not political Movement against the use of English in the teaching of Mathematics and Science (GMP) yesterday denied it was being directed by certain groups, including the opposition parties.

• Batang Ai by-election candidate to be revealed on Saturday The Barisan Nasional candidate for the Batang Ai by-election is expected to be known on Saturday.Chief Minister Tan Sri Abdul Taib Mahmud told reporters yesterday that the state Barisan would meet on that day to discuss who would represent the coalition in the coming by-election.

• Umno corrupt: survey Respondents also describe country's most powerful political party as out of touch UMNO has received a slap in the face just ahead of its key annual meeting, with many voters polled in a survey seeing Malaysia's biggest political party as corrupt and out of touch with the ground. Strategic Front

Economic Front

• Sabah, Sarawak pin hopes on stimulus plan Hopes are high in Sabah and Sarawak that the second economic stimulus plan, details of which are to be released today, will give attention to the needs of the rural people.

• Malaysia to build budget air terminal Malaysia’s government’s announced yesterday (Wednesday 11 March) that it will build a US$540 million low-cost air terminal by 2011. In a move to ease budget carrier AirAsia’s concerns about its ability to continue growing, Malaysia Airports Holdings’ managing director Bashir Ahmad said that the terminal will be built near the main Kuala Lumpur International Airport, with a capacity to handle 30 million passengers a year, and should be ready by the second half of 2011. “We’ve found the location and will be announcing it at the right time.”

• Palm Oil May Drop 23% on Higher Supply, Analysts Say (Update1) Palm oil futures may tumble as much as 23 percent this year because of lower energy prices and increasing vegetable oil supplies, according to analyst forecasts at an industry conference in Kuala Lumpur.

• Foreign investors seen staying in KL bourse

248 FOREIGN shareholders are expected to remain in the Malaysian market due to its stability despite the ongoing global financial uncertainty, Securities Commission (SC) market supervision executive director, Datuk Ranjit Ajit Singh, said today. Social Front

• Face obstacles as one, Muslims told Sultan of Kedah Sultan Abdul Halim Mu'adzam Shah has called on Muslims to unite to face challenges and obstacles.

• Employers urged to review salaries of locals The Ministry of Human Resources on Thursday urged private sector employers to review salaries offered to locals, making them more attractive, so that they can fill jobs vacated by foreigners. Environmental Front • Philippine

Political Front

• Philippine Army-based coop holds first automated elections(Strategic) A Philippine Army (PA) based cooperative implemented its first automated elections of its board of directors recently.The Philippine Army Finance Center Producers Integrated Cooperative or PAFCPIC Board of Directors (BODs) held its first automated elections on February 28, 2009.

• Daughter of NPA leader found dead Davao City, Philippines: A daughter of a senior communist rebel leader was found dead in the southern Philippines, a day after she was abducted by unidentified gunmen, a police report said yestterday. The body of Rebelyn Pitao, 20, was fished out of a river in Carmen town in Davao Del Norte province, 975km south of Manila, late on Thursday.

• Mindanao rally to urge talks resumption Peace advocates in Mindanao will assemble at various points regionwide on March 18 to call again for the resumption of peace talks between the government and the Moro Islamic Liberation Front (MILF).

• MILF harboring Abu Sayyaf, says AFP official(Social) The Armed Forces of the Philippines (AFP) on Monday accused the Moro Islamic Liberation Front (MILF) of harboring members of the Abu Sayyaf Group (ASG) after reports surfaced that an ASG member is allegedly hiding in MILF grounds..

249 • Military to reduce insurgency to ‘irrelevance’ THE military’s Southern Luzon Command is confident it will be able to accomplish the 2010 target to reduce insurgency problem in the country to “irrelevance” even before the target date a military official said Sunday.

• Arroyo signs law claiming islands Philippine President Gloria Macapagal Arroyo has signed into law a bill defining the country’s territorial boundaries and laying claim to disputed areas in the South China Sea, a top aide said yesterday. Strategic Front

• China in dispute with Malaysia, Philippines over Island China, which has a long standing dispute with Japan over an island, has now entered in a tiff with Malaysia and the Philippines over another island in the South China Sea.The Chinese foreign ministry said on Friday that China has indisputable sovereignty over the Nansha Islands and adjacent waters.

• Philippines enacts territorial law protested by China, Vietnam amid disputes over islands The Philippine president has signed a law affirming sovereignty over islands also claimed by China and Vietnam, an official said Wednesday, sparking protests over the control of strategic South China Sea islands.

Economic Front

• EDITORIAL: Domestic borrowing and fiscal reforms WHAT we've warned about in this space has come to pass. The government announced that it would raise its domestic borrowing program to bridge an expected widening in its budget deficit.

• Global fiscal losses hit $50tr, ADB says The global financial crisis slashed the value of financial assets worldwide by $50 trillion (Dh183.5 trillion) last year, a study commissioned by the Asian Development Bank (ADB) said Monday. Financial asset losses in developing Asia, which suffered more than other emerging markets, totalled $9.6 trillion, or just over one year's worth of developing Asia's gross domestic product, the study said.

• ADB: Global crisis slashed $50-T from financial assets in 2008 A study commissioned by the Asia Development Bank entitled "Major contagion and a shocking loss of wealth," said the global economic crisis had slashed the value of financial assets worldwide by a massive $50 trillion in 2008. it said developing nations in Asia, including the Philippines, experienced a $9.6 trillion drop in their stock and bond markets and in the depreciation of their currencies against the US dollar.

250 • Philippines expects bigger rice harvest amid global crisis The Philippine government has raised its allocation for agriculture to support the ambitious plan of rice self-sufficiency, but analysts said it remains debatable whether the increased budget can boost the rice production as expected this year and help realize the target to become self-sufficient by 2010.

• Consumer confidence up in Philippines amid global crisis Philippine consumer confidence on the local economy has improved thanks to expectations of lower oil and food prices, the country's central bank said on Thursday. Social Front

• UK 'behind the Philippines on workplace equality' The UK is lagging behind the Philippines when it comes to appointing women to senior management roles, it has been revealed. According to the latest Grant Thornton International Business Report, female workers hold 47 per cent of top roles at private sector firms in the Philippines, the highest proportion of any country in the world.

• Female Migrants From Asia At An Increased Risk Of HIV, U.N. Report Says Female migrants from Asia have become "highly vulnerable" to HIV during the global financial crisis, according to a United Nations Development Programme report released in Manila, the Philippines, on Tuesday,

• Philippines closely monitoring immigration case in Japan(Strategic,Social) The government said Thursday it was closely monitoring a contro-versial immigration row in Japan involving a Filipino couple and their daughter. Environmental Front • Thailand Political Front

• Thai premier faces impeachment complaint Thailand’s leading opposition party the Puea Thai Party filed on Wednesday morning an impeachment motion against Prime Minister Abhisit Vejjajiva to Senate President Prasobsook Boondech, for a debate in the House.

• Thai PM confident of answering all impeachment charges Thai Prime Minister Abhisit Vejjajiva said on Wednesday afternoon he is confident he will be able to answer all of the impeachment charges filed against him by the opposition parties.

• Thai PM, ministers face no-confidence motion

251 Thailand's opposition on Thursday filed a censure motion against Prime Minister Abhisit Vejjajiva and five government ministers, accusing them of corruption.

• ASEAN to be held at luxury beach resort THAILAND has again switched the venue of a long-delayed meeting of Southeast Asian leaders and key regional counterparts, saying it would now be held in the beach resort of Pattaya. Strategic Front

Economic Front

• Thai economy comes under further downward pressure from the global recession, As the Thai economy comes under further downward pressure from the global recession, reports warn that the hardest hit from the downturn are the rural and urban poor. Thai Prime Minister Abhisit Vejjajiva, has pressed his Cabinet members to go to the provinces to hear views from local people as the government prepares new measures to boost the economy.

• Economic crisis causes thousands of Burmese migrants to lose jobs (Social) The number of Burmese migrant workers in Thailand and Malaysia that are losing their jobs as a result of the global economic crisis is soaring, according to a -based migrant workers group. Social Front

• Thai minister meets UN on refugees Thailand's foreign minister Kasit Piromya met the United Nations' refugee chief Saturday to discuss the plight of migrants from Myanmar washing up on its shores. The United Nations' refugee agency (UNHCR) has expressed concern over the fate of hundreds of Rohingya migrants who were rescued in Indian and Indonesian waters in recent months claiming to have been abused by Thai authorities.

• Thai FM meets UN on Rohingya refugeesMarch 7, 2009 Thailand's foreign minister Kasit Piromya met the United Nations' refugee chief to discuss the plight of migrants from Burma washing up on its shores.

• Thailand: Resolve ‘Disappearance’ Case The new government of Thailand should ensure that those responsible for the enforced disappearance and presumed murder of prominent Muslim human rights lawyer, Somchai Neelappaijit, are finally brought to justice, Human Rights Watch said today, five years after his abduction.

252 Environmental Front • Singapore

Political Front Strategic Front

• Singapore, Indonesia to sign maritime boundary agreement Singapore's Foreign Affairs Minister George Yeo will visit Jakarta on Tuesday. There, he will sign the maritime boundary agreement between Singapore and Indonesia. The boundary delimits the western part of the Strait of Singapore. The maritime boundary treaty came to fruition after nearly four years of negotiations which started in February 2005.

Economic Front

• Singapore shares near six-year low Singapore shares closed 3.71 per cent down on Monday, hitting their lowest level in nearly six years on persistent worries over the economic outlook, analysts said.

The blue-chip Straits Times Index fell 56.17 points to 1,456.95 on a volume of 830.31 million shares worth S$667 million. Losers led gainers 318 to 118, with 785 issues unchanged.

• 26% increase in Singapore's dengue cases in first 9 weeks of 2009 Singapore had seen a 26 per cent jump in dengue cases in the first nine weeks of this year, compared to the same period in 2008. And authorities are taking a more concerted approach in the fight against the mosquito-borne disease, which can be fatal in its severest form. According to the National Environment Agency (NEA), there were 1205 cases of dengue in Singapore since the beginning of the year, an increase of 253 cases on- year.

• Singapore must be ready for post-crisis order Singapore must be ready when the economic slump ends and when the post-crisis order takes over. And to remain competitive, Education Minister Dr Ng Eng Hen said, the country must be known as an Intellectual and Information City, a Talent City and Global Node, a Future Model City and a Connectivity City.

• President Nathan takes final step to allow govt to draw on reserves(pol) President Nathan has taken the final step to allow the government to draw on Singapore's reserves as announced in this year's Budget Statement. He has written to the Speaker of Parliament, Abdullah Tarmugi, saying the Council of Presidential Advisors had approved

253 the draw on past reserves to fund the Jobs Credit Scheme and the Special Risk-sharing initiative. The risk-sharing initiative will see the government undertake up to 80 per cent of bank loan risks. President Nathan is approving the draw of up to S$4.9 billion on past reserves. It is the first time Singapore is dipping into the reserves

• MM Lee urges new citizens to pull together with Singaporeans Singapore's Minister Mentor Lee Kuan Yew said new citizens must pull together with Singaporeans to adjust to changes in the world economy. He was speaking at the Tanjong Pagar GRC Citizenship ceremony where 250 citizenship certificates were presented Saturday evening.

• S'pore family businesses have strong values to ride out economic crisis Singapore family businesses have leadership values and characteristics which are likely to put them in good stead to ride out the economic slump. This comment came in a report entitled "Family Business: In Safe Hands?", published by Barclays Wealth and the Economist Intelligence Unit. The study is based on a global survey, involving countries like China and the United States. Social Front Environmental Front • Vietnam Political Front Strategic Front

Economic Front

• Vietnam keen to strengthen trade relations HH the Emir Sheikh Hamad bin Khalifa al-Thani receiving Vietnam’s Prime Minister Nguyen Tan Dung at Doha Sheraton hotel yesterday. Bilateral relations and means of bolstering them as well as a number of issues of mutual concern were discussed during the meeting Vietnamese Prime Minister Nguyen Tan Dung resumed his meetings with a number of Qatari officials as part of his current visit to Qatar.

• Sri Lanka can be bridge to trade with South Asia -Vietnamese PM Vietnam Prime Minister Nguyen Tan Dung said he hoped Sri Lanka would serve as a bridge for Vietnam's economic, trade and investment cooperation with South Asian countries. Receiving Sri Lankan Foreign Minister Rohitha Bogollagama in Hanoi the Vietnam Prime Minister said, "Vietnam supported Sri Lanka's efforts to stabilise national

254 security and social order and fight terrorism in the name of national construction and development."

• Vietnam, Singapore cooperate on e-government strategy A seminar focusing on Vietnamese and Singaporean cooperation in the application of e- government technology was held in Hanoi on March 10. An official from the International Enterprise Singapore said that his country had launched six IT development programmes and strategies over the last 25 years, and that Singapore had implemented three general plans to develop its e-government system.

• Vietnam: a casualty of the crisis Mar 13, 2009 Vietnam's stock market was Asia's worst performer last year, sliding by 69% in dollar terms. This year it has fallen further and is set to keep struggling because "Vietnam's fundamentals are worsening", says Andrej Hrovat of the RH&P Global Value fund. GDP expanded by 6.8% last year – that sounds a lot, but was the slowest pace in a decade – and growth of just 5% is expected this year.

• Seminar fosters Vietnam-EU economic cooperation A seminar on Vietnam-European Union trade and economic relations was held in Hanoi on Mar. 11 to help domestic and European companies to find business partners and create long-term cooperative ties.

• Vietnam Increases Import Tariff For Dairy Products, Dairy farmers in Vietnam are set to benefit from an increase to the import tariffs on various milk products, the country's Ministry of Finance (MoF) has revealed.

• Qatar, Vietnam in talks over $1bn fund Qatar and Vietnam, pictured, are in talks over setting up a $1bn fund.Qatar and Vietnam are in talks about setting up a $1bn fund to invest in sectors including agriculture and tourism, it was reported on Monday. Social Front

• Viet Catholics look to revive evangelization efforts (Subscribe to RSS Feed) The Archdiocese of Ho Chi Minh City (formerly Saigon) has held a series of seminars on evangelization in recent weeks, to address mounting concerns about the ineffectiveness of the Church's missionary efforts. Environmental Front

• Int'l organization helps Vietnam in biosphere protection Two international organizations from Australia and Germany have decided to provide 1.6 million euros (about 2 million U.S. dollars) to help Vietnam conserve a key biosphere spot in southern Kien Giang province, Vietnam News Agency reported on Wednesday.

255 AusAID, the Australian government's overseas aid program, and Germany Technical Cooperation Organization (GTZ) will provide financial as well as technical assistance to the project, said the agency. • Laos Political Front

• Thai Princess calls on Lao President President Choummaly Sayasone of the Lao PDR received at Hor Kham, the Presidential Palace, on 6 March HRH Princess Maha Chakri Sirindhorn of the kingdom of Thailand.

• Laos-Vietnam National Assemblies establish close ties President of National Assembly, Thongsing Thammavong warmly welcomed a delegation of high ranking officials from Vietnam, led by Mrs Tong Thi Phong, Deputy President of National Assembly of Vietnam in Vientiane on 9 March. Strategic Front

• Vientiane to construct new road links Sayaboury The Public Works and Transport Service of Vientiane province signed an agreement with three constructed companies to pave asphalt roads and bridges in the province..

Economic Front

• Hungarian Government gives Laos loan for agriculture Hungarian government last week gave a loan of US$8.6 million to Lao government for agricultural development in Vientiane Capital and Luang Prabang province.

• ADB Water Project to Ease the Strain on Women in Lao PDR Women who spend up to two hours a day on the backbreaking task of water collection and storage will be key beneficiaries of a new water supply and sanitation project in the Lao People’s Democratic Republic.

• Laos confirms SEA Games events(Social) The SEA Games Federation (SGF) and the SEA Games host nation of Laos have confirmed that 25 sports, comprising 386 events, would be included in the 25th SEA Games, scheduled to take place in Vientiane, from Dec 9-18.

• Japan gives money to build a gymnasium to Laos(strategic,Socuial) Japanese Government gave almost US$100,000 to the construction of Multipurpose Gymnasium of the Physical Education Teacher Training School.

• Laos, Thailand to boost power and energy cooperation(Eco,St,)

256 Laos and Thailand have agreed to continued cooperation in power and energy affairs, although some projects need revision, according to acting Thai Government Spokesman Panithan Wattanayakorn. Social Front Environmental Front

• Champassak to be the host of ASEAN+3 environmental meeting The leading officials of Champassak province discussed on organizing ASEAN plus 3 environmental annual meeting in Champassak province at the end of this month. • Cambodia Political Front

• PP election a two-cart race AMONG the four parties approved to compete in the upcoming May 17 council elections, just two parties - the ruling Cambodian People's Party and opposition Sam Rainsy Party - will compete for seats on Phnom Penh's municipal council, according to party ballot draws conducted by the Provincial Election Committee (PEC) Tuesday.

• SRP worried by councillor delays Party says discrimination slowing approval of commune officials, who have a vote in May pollCPP supporters during the July election. The SRP claims political discrimination is impeding voter registration for the May poll. Strategic Front

• Unesco official calls for more border talks THE chairman of UNESCO's executive board expressed support Wednesday for further discussions between the Cambodian and Thai governments related to the dispute over Preah Vihear temple. In a move Thailand opposed, UNESCO listed the temple as a World Heritage site last July, triggering a troop buildup on both sides of the Thai- Cambodian border.

Economic Front

• Progress made on energy training: Govt CAMBODIA faces a significant challenge in finding qualified local engineers to work in the oil and gas industry, but has recently taken steps to ensure qualified personnel will be available, officials said.

• 'Slow' development of island resorts to be completed by 2015: official

257 Numerous island development projects have been stalled due to checks on environmental impact, but all will be finished within six years, says CDC

• Crisis threatens poverty reduction Efforts to halve poverty by 2015, one of Cambodia's nine Millennium Development Goals, could by stymied by low or negative economic growth and a lack of rural resources.

• SMEs seen as key to growth Members of the government and private sector urge development of small and medium- size businesses to drive economy towards recovery.

• Diversify economy, says PM Prime Minister called for economic diversification Thursday at the 2009 Outlook Conference at the Phnom Penh Hotel. WITH some analysts expecting Cambodia's economy to contract for the first time in recent memory, Prime Minister Hun Sen urged the private sector Thursday to diversify beyond traditional export markets and announced more government help for crisis-stricken families. Social Front

• Tamil group not a threat in Cambodia LOCAL and American officials in Phnom Penh have downplayed the threat posed to Cambodia of a nonprofit group with ties to Sri Lanka's separatist Tamil Tigers that has offices around the globe.

• Temple Watch: Wat's in a name For those curious about the meanings of the names of Angkor temples, here is a brief explanation for the most popular nomenclature: Angkor Wat literally means Temple City. The Thom in Angkor Thom means big. The meaning of Bayon is unclear, but a plausible translation is Leading Sacred Amulet. Prasat Bei near the south gate of Angkor Thom means Three Towers. Ta in Ta Prohm means grandfather or old man.

• ASEAN failing on human rights

The 10-member Association of Southeast Asian Nations wrapped up a two-day summit in Thailand under the theme "ASEAN Charter for ASEAN Peoples" on March 1. Topics under discussion included more effective community building, enhancing regional resilience against global threats and reinforcing ASEAN centrality in the evolving regional architecture. Environmental Front • Brunei

258 Political Front

• Security, Agriculture, Education Likely To Top LegCo Agenda The first meeting of the fifth session of parliament begins today with the opening ceremony being officiated by His Majesty the Sultan and Yang Di-Pertuan of Brunei Darussalam.

• 'Do not rely on govt to provide employment' JOBSEEKERS and employers should no longer depend on the government to provide employment, said the Minister of Energy at the Prime Minister's Office yesterday.

• 5th Legislative Council Session Begins Today Legislative Council proceedings get under way today at the Legislative Council building with the first sitting of the fifth session. The highlight of the opening today will be a Utah by His Majesty the Sultan and Yang Di-Pertuan of Brunei Darussalam Strategic Front

Economic Front

• drug smuggling syndicates(social) In An alarming state of events, recent reports of Bruneians involved with international drug smuggling syndicates have caused a stir in the relatively peaceful state of Brunei. Social Front Environmental Front

259

Detailed News Monitoring Report • Indonesia

Political Front

• Myanmar PM to visit Indonesia, Singapore The prime minister of military-ruled Myanmar will make official visits next week to Southeast Asian neighbors Indonesia and Singapore, just two weeks after the three countries' leaders met at a regional summit.

Diplomats said Prime Minister Gen. Thein Sein will depart Sunday for Indonesia and then travel to Singapore before returning home Wednesday. They spoke on condition of anonymity because they were not authorized to release information to the media.

The state-owned New Light of Myanmar newspaper said Thein Sein would make the visits in the near future, but gave no dates.Indonesia is the most populous member of the 10-member Association of Southeast Asian Nations, to which Myanmar and Singapore also belong.

ASEAN's members have generally good relations but faced tensions earlier this year when thousands of Muslim refugees, known as Rohingyas, fled Myanmar by boat. The Indian navy said hundreds were believed to have drowned after the Thai navy kept them from coming ashore.Others were detained after landing, and about 400 came ashore in Indonesia. Both Thailand and Indonesia refused to accept them as refugees, and Myanmar's government has agreed to accept them back only if they can prove their

260 nationality. The Rohingyas' status in Myanmar already is insecure because they do not hold full citizenship and are denied the right to vote and other privileges.

Indonesian Foreign Ministry spokesman Teuku Faizasyah said Thein Sein will discuss the need for closer bilateral ties with President Susilo Bambang Yudhoyono. He said the plight of the Rohingya boat people was not on the table because the issue was discussed at the ASEAN summit in Thailand two weeks ago.

Indonesia has in the past tried to take advantage of generally good relations with Myanmar to push it to implement democratic reforms, which some Southeast Asian nations have shied away from doing, pointing to ASEAN's founding tenet of noninterference in other members' internal affairs.

• Indonesia receives grants for elections Indonesia has get 20.2 million U.S. dollars grants from multilateral and bilateral schemes to assist the country's parliamentary and presidential polls later this year, the Jarkata Post reported Saturday.

The money will be used to strengthen the capacity of the General Elections Commission (KPU), the Supervisory Elections Body (Bawaslu) and to increase the role of women in politics. The fund was donated by the governments of Spain, Canada, the Netherlands, United Kingdom and Australia. Indonesia is to hold legislative poll at April and presidential election in July.

• 'Obama Snacks' To Be Outlawed? The snacks, which some want to ban as demeaning to the prez, are especially popular in Indonesia because Obama, his mother, and his Indonesian stepfather lived in Jakarta for four years. Obama was not born in Indonesia, however.

• IT body to assist Indonesian general election this year The Indonesian Technology Evaluation and Implementation Body (BPPT) will help the General Election Commission (KPU) by providing information technology (IT) service in this year's general election.

It will provide integrated system service and data center maintenance to publish vote results for public via Internet. He added that BPPT has formed a working team consisting of 25 staff as KPU's technical assistance. The KPU chief Hafiz Ashary said he hoped this cooperation will last longer than one year to make full use of the BPPT's system.

• Indonesian President's Party Ahead In Polls Indonesian President Susilo Bambang Yudhoyono's Democratic Party is leading its rivals ahead of elections next month, an analyst said Thursday, citing a new opinion poll.

261 The party, which the liberal ex-general founded in 2001, is on target to become the largest in the country after the April 9 general elections, according to the joint poll by four survey institutes released this week.The Democrats will sweep aside the more established Golkar and Democratic Party of Struggle, said analyst Sunny Tanuwidjaja of the Center for Strategic and International Studies which co-produced the survey.

The Democratic Party had 21.52% support in the survey, ahead of the opposition Democratic Party of Struggle of former president Megawati Sukarnoputri, which had 15.51%.The largest party in Yudhyono's parliamentary coalition, Golkar, won just 14.27% support.

Five other parties - including those which claim to base their policies on Islamic teachings - scored less than 5%.Yudhoyono's anti-corruption campaign, which has resulted in convictions against a number of senior lawmakers and officials in recent months, had pulled the rug from under the Islamic parties' claims to be more cleanHe said the Islamic parties' championing of a new anti-pornography law had also backfired, especially with their criticism of popular folk dances as too erotic.

The Islam-based Prosperous Justice Party, or PKS, had targeted 20% of the vote but its officials are now publicly talking about 10% at best, and have admitted they need to form a coalition with a nationalist party

• Indonesian voting change aims for cleaner politics For the first time, candidates that win Indonesia's April 9 parliamentary elections will be the ones that actually become the MPs, a step towards more effective legislation and greater accountability among legislators.

• Workers prepare ballot boxes before distributing them to districts in Surabaya, Such change is badly needed, given parliament's reputation for corruption and its poor track record in passing key legislation -- factors that have deterred investors and curbed the growth and development of Southeast Asia's biggest economy.

In the past, voters could pick a party or an individual but in practice, the parties chose who got the seats. Some analysts said the system was open to abuse, with some candidates suspected of donating generously to the party to ensure a seat.To help voters pick clean candidates, the National Campaign Against Voting for Rotten Politicians is drawing up blacklists of those involved in graft, environmental crimes or human rights abuses, to distribute at bus stations and other public places.

The resignation of former president Suharto in 1998 in a populist uprising after 32 years of autocratic rule paved the way for political, economic and social reforms and led to greater democracy and freedom of speech.But politicians and analysts say further change is needed.

262 In the 45-day session that ended in early March, only three bills were passed by parliament -- a tax bill, a law against human trafficking, and the ratification of the UN convention against transnational organised crime -- while other top priority bills on the health services and a corruption court still await attention, the Jakarta Post reported this month.Out of 550 members, less than 100 had bothered to show up for work while 300 or so just signed the attendance sheet, the Jakarta Post added, also noting the fact that MPs' salaries and perks, amounting to up to 100 million rupiah ($8,340) per month, are way above the national average.

The impact of such practices is that Indonesia struggles to pass legislation and underperforms economically because investors are put off by graft, red tape and poor infrastructure.The corruption court legislation, for example, would extend the lifespan of an institution that has played a particularly effective role in punishing corrupt officials. With so many politicians involved in corruption, it's no surprise that parliament is dragging its feet in passing the bill.Another critical piece of legislation that was only passed in late 2008, after being held up for years in parliament, was the mining law, which includes sweeping changes to the permit system.International mining companies delayed investing in the resource-rich archipelago until the law was passed, so Indonesia missed the chance to attract billions of dollars of much-needed funding at the height of the commodities boom.What is clear to many Indonesians is that parliament's decision- making processes can be influenced by personal greed rather than the needs or greater good of the country.

Several members of parliament have been arrested and charged with taking bribes in exchange for supporting bills, regulations or contracts that benefit particular business interests.When state energy firm Pertamina's new head was questioned in parliament in February, the media highlighted how rude the legislators were to her, noting that the tactics were intended to intimidate her into dishing out backhanders.

• NO PANACEA FOR GRAFT Critics say that holding direct elections for members of parliament is unlikely to eliminate graft -- candidates will simply hand out bribes to voters instead of the party to secure their places in parliament.

A recent poll also showed that Indonesians were more likely to vote for the party rather than the individual.But Indonesia's experience with regional autonomy over the past few years has shown that voters are capable of throwing out corrupt politicians and re- electing those who improve local services and infrastructure.

Several provinces and districts have established a strong record for relatively clean and effective governance.

263 Strategic Front

• Indonesia inaugurates 1st defense university Indonesian President Susilo Bambang Yudhoyono on Wednesday inaugurated Indonesian Defense University (IDU), the first of its kind in the country, at the State Palace, the Jakarta Post reported.

President Yudhoyono said at the launching ceremony that the institution was expected to help both military officers and civilian to advance knowledge on defense and security.

He added that Indonesia needs to improve the state's strategic defense capability with dynamic changes in global politic and economy, as well as more and more defense cooperation held with other countries.

Indonesia is the third in the region to establish such institution while Singapore and Malaysia had established similar ones in 2005 and in 2007 respectively.

Economic Front

• Islamic Development Bank to fund textile projects in Pakistan The Islamic Development Bank is willing to finance up to 65 percent of a textile project in Pakistan, so said the President of the Bank, Mr Iftikhar Malik at the just concluded 5th Islamic Economic Forum in Jakarta, Indonesia.

This was conveyed by Mr Malik to the 10 member visiting delegation at the Economic Forum from Pakistan. He assured of all help in financing sectors like agriculture, textiles, clothing, energy and food to foster economic development in the country

• East Asia's economic revenge Following the 1997 financial crisis, Asia got screwed by the US-led IMF. With the housing bubble, Asia returned the favour

Article history

In a matter of a few short weeks during the summer of 1997, the thriving countries of east Asia saw their economies overwhelmed by a financial tsunami. First Thailand and Indonesia, and then South Korea and Malaysia, saw investors panic and watched capital flee. Their currencies plummeted in value and their biggest companies wrestled with bankruptcy.

After being held up as models of successful development, these countries were suddenly denounced by the International Monetary Fund and prominent economists everywhere for their lack of transparency, poor accounting standards and crony capitalism. The IMF came into the region with a rescue plan that imposed harsh conditions. It demanded that

264 these countries impose austerity plans and allow foreign investors to buy up their businesses at depressed stock prices.

The other part of the story was that the IMF insisted that these countries repay their debts. The only way they could do so was to export like crazy. This route was opened to the Asian countries by the plunge in the value of their currencies, most significantly against the dollar. The result was that goods from the region became very cheap to American consumers, yielding a flood of imports to the United States.

There was a second route that the IMF could have followed for debt repayment. In recognition of the severity and extraordinary nature of the crisis, the IMF could have allowed for substantial write-downs of debt by the countries of the region. But it chose not to follow this route.

Of course the IMF was not an independent actor. The organisation takes its lead from the United States. At the time, the folks calling the shots were the trio that Time magazine dubbed the "Committee to save the World" (CSW): Alan Greenspan, Robert Rubin and Larry Summers.

The IMF "rescue" for east Asia had important ramifications for the rest of the developing world. The message that developing countries took away from the IMF's east Asia rescue was that they never wanted to be in a situation in which they were forced to turn to the IMF for help. The one way that they could prevent being forced to turn to the IMF was to accumulate massive amounts of foreign reserves as a defence. The only way to accumulate foreign reserves is to run a balance of trade surplus.

This effort by developing countries to accumulate reserves meant that it was not only the countries of east Asia who were exporting like crazy, but rather the whole developing world. Reversing the conventional view in economic theory, in the years after 1997 there was a massive flow of capital from the developing world to the wealthy countries, with the United States being the biggest recipient.

This capital flow from the developing world created the hothouse in which the US housing bubble could flourish. The jobs lost to imports created weakness in the labour market. Even though the 2001 recession officially ended in November of that year, the economy continued to shed jobs for nearly two more years, in part due to the loss of jobs to imports. Seeing this weakness in the labour market, the Federal Reserve continually pushed interest rates lower, reaching 1% in the summer of 2003.

Low interest rates in turn sustained the bubble far longer than otherwise would have been possible. The bubble itself helped to conceal many of the excesses and outright fraud perpetuated during these years. In a world where housing prices are rising by more than

265 10% a year, and generating enormous profits for the firms in the real estate and banking sector, many sins can be concealed.

But bubbles inevitably burst. The bursting of the housing bubble will erase $8tn in wealth (more, if prices overshoot) and will leave many of the country's pre-eminent financial institutions bankrupt. More important, it is throwing the US economy into its worst downturn since the Great Depression.

In history, we never get second chances, but it is still worth asking the question of what the world would look like if the CSW had taken the other path. Suppose Greenspan, Rubin and Summers had instead arranged for the IMF to write down a large portion of the east Asian debt so that they were not forced to place the same priority on exports.

Furthermore, a less onerous rescue would not have created the same rush to accumulate reserves across the developing world, as did the bail-out designed by the CSW. We can't know exactly how things might have turned out if the CSW had taken this alternative path, but it's likely that Rubin's shares in Citigroup would be worth considerably more money today.

• Seoul and Jakarta seek co-operation on financial crisis South Korean President Lee Myung-bak (pictured) called yesterday for closer co- operation with Indonesia to help counter the impact of the global financial crisis on two of Asia’s biggest economies. Both nations have been suffering, with exports diving in the region this year.

• UPDATE 2-Indonesia buys 3.7 mln bbls May crude, seeks more Indonesia's Pertamina bought a hefty 3.7 million barrels of crude for May, the highest since September 2007, and issued another tender seeking more sweet grades to boost stockpiles, a company source and traders said on Friday.

The volumes include a rare purchase of Algeria's Saharan Blend crude, at a time when it is economical for traders to move Brent-related crude from the West to Asia.

State-run Pertamina's latest tender for May-arrival crude closes on March 18, the company source said. Pertamina bought 1.8 million barrels of Asia-Pacific crude, including 600,000 barrels each of Malaysian Kikeh, Brunei's Seria Light and Vietnamese Bach Ho, up from 1.2 million barrels it bought from the region last month, he said.It also bought 950,000 barrels of Nigerian Qua Iboe crude and 950,000 barrels of Saharan Blend, he added.

Pertamina's purchase came after Indian Oil Corp (IOC) bought 1.0 million barrels of Kikeh crude for May loading via tender, the second time it bought regional grades in five months

266 • Indonesia polls lack monitors’ Volunteers sort ballot papers in preparation for the upcoming parliamentary elections at a subdistrict office in Jakarta yesterday

Indonesian parliamentary polls next month are unlikely to trigger widespread violence, but tensions are running high in former hot spots such as Aceh, a regional security analyst said yesterday. A further concern ahead of the April 9 ballot is that there will be fewer election monitors in place to observe voting in Southeast Asia’s biggest democracy, said Sidney Jones of the International Crisis Group (ICG).

Some of the risks stemmed from deep distrust between the Indonesian military and former supporters of the separatist Free Aceh Movement (GAM). Concerns remained that the former rebels were keeping stockpiles of weapons, while the GAM-backed Partai Aceh felt it was being targeted by the Indonesian military, Jones said. However, a recent visit to the province on the tip of Sumatra by Indonesian President Susilo Bambang Yudhoyono and the drafting in of a new police chief had calmed some tensions, she added.

Jones said other areas that should be monitored more carefully included places where they had been recent local election disputes such as East Java or North Maluku.

She also singled out the North Sumatran region of Tapanuli, where some have been agitating for the creation of a new province, triggering violence last month. The move towards greater decentralisation in Indonesia has at times fanned conflict as local areas attempt to gain control over resources or added to religious divides.

Indonesia’s parliamentary elections are followed by presidential elections on July 8, but there are not expected to be as many election monitors as in previous elections.

There have also been a range of concerns over the complexity of the voting system this year and confusing ballot papers. The head of a parliamentary delegation from the European Union said last week it could not send an election monitoring team to Aceh unless the Indonesian government extended a formal invitation.

• Forum calls for growth of Islamic finance Islamic finance and banking must be developed as an alternative to the discredited Wall Street model of doing business, the World Islamic Economic Forum resolved as it wrapped up Wednesday in Indonesia.

More than 1,550 delegates including prime ministers, presidents, princes and sheikhs from 38 countries issued a declaration calling on the Islamic Development Bank (IDB) to take the lead in promoting Islamic finance.

267 They also called for "effective regulations" in the conventional global financial industry to "mitigate risk and failure" in the aftermath of the Wall Street collapse triggered by a credit crunch in the US housing sector.

The declaration expressed support for the IDB Task Force for Islamic Finance and Global Financial Stability to "promote Islamic finance and banking as a viable alternative to the conventional financial system."It also called on "governments and Islamic banks to expand Sharia-compliant micro-credits" to small businesses in the developing world.

The fifth Islamic economic forum opened in Indonesia, the most populous Muslim country and the largest economy in Southeast Asia, on Monday.Other items on the agenda included the "global food crisis" triggered by last year's price spikes and falling production, alternative energy and the future of fossil fuels.

The delegates included corporate leaders from 87 companies as well as governmental and non-governmental organizations.More than $3 billion worth of agreements were signed on Monday, organizers said.The final declaration also contained a call to maintain the momentum for free trade in the face of protectionist tendencies triggered by rising unemployment and the global economic turmoil.

.Malaysian Prime Minister Abdullah Ahmad Badawi blamed "unbridled greed" for the global financial meltdown and called for a new financial system to replace the Wall Street model.He said Islamic finance — which shuns interest and avoids profiting from industries such as alcohol and gambling — was "gaining credibility as an alternative."The forum will next meet in Kuala Lumpur, Malaysia, on May 18-20 next year.

• Indonesian president urges banks to cut rates Indonesian President Susilo Bambang Yudhoyono Tuesday asked the country's banking industry to drastically cut interest rates for lending, so as to ease business costs, spur loan demand from consumers, and push forward economic growth, the Jakarta Post reported on Wednesday.

He said that although banks have to follow the "prudential" principle, they should start looking outward to help the business sector sustain the global crisis. Before that, Indonesian banks widely refused to adjust their rates following the central bank's cutting benchmark interest rate serially to 7.75 percent recently.

Statistics from Indonesian central bank show that the banks' average lending rates slid from 14.2 percent in the last week of December 2008 to 13.93 percent by the second week of March, while deposit rates declined from 8.75 percent to 8.32 percent.

268 "The decline isn't steep, but it shows a downward trend," said the central bank's director for banking research and regulation Halim Alamsyah, adding that banks would need two to three months to adjust to new benchmark rate under normal conditions

• Official: Indonesia's industry to grow by 3.5% this year Indonesia's industry is forecast to grow at a slower pace of between 2.5 to 3.5 percents this year due to the fallout of the global recession, an senior official said Wednesday.

"It shows that the industrial sector is hit by the global economic slowdown," Secretary General of the Industry Ministry Agus Tjahajana told reporters on the sidelines of the Annual Citi Indonesia Economic and Political Outlook Seminar here in Jakarta.

Tjahajana said that before the crisis the industry grew in the range of 5 to 7 percents, and now the textile and footwear industries, which highly depend on overseas sales, would be the most hit by the recession.

The textile sector sold 70 percent of its product to overseas and the footwear sector between 50 to 60 percent, he said. The global economic downturn has trimmed demand and slumped prices of Indonesia's export products, including textile, coal, palm oil, rubber and fabricated goods. Indonesia is the world's biggest palm oil producer and the world's second biggest rubber maker. The country has decided to rely much on its huge domestic market with over 230 million population following the slumping of its exports. Social Front

• Indonesia Cracks Down on Offensive Hot Spot Indonesian hipsters looking for a place to chill in steamy Jakarta didn't have to look much further than the Buddha Bar. Last year, the posh establishment opened as the first Asian branch of an international chain with outlets everywhere from Paris and Cairo to Kiev and Sao Paulo. But on March 10, the Jakarta Legislative Council ordered the nightspot shuttered because its use of religious iconography could be considered offensive to Buddhists. In addition to its religiously inspired name, the restaurant's dining area is dominated by a giant Buddha sitting in the lotus position.

• Indonesia’s New Anti-Porn Agenda The decision is just the latest religious controversy to make headlines in Indonesia in recent months. About 90% of the sprawling archipelago is Muslim — the world's largest Islamic population — but significant Hindu, Christian and animist communities live in places like Bali, Sulawesi and Papua. Despite the country's constitutional commitment to freedom of faith, religious minorities have complained in recent years of a creeping Islamization that they believe has strained Indonesia's social fabric.

269 In January, the nation's top Islamic body issued a fatwa, or religious edict, banning Muslims from practicing yoga if it involved chanting Hindu mantras. Late last year, Indonesia's parliament passed an anti-pornography bill that could criminalize certain folk dancing or traditional women's outfits. The bill was supported by hard-line Islamic groups, who believed its passage could counter moral degeneracy among Indonesian Muslims. Now, adherents of other faiths are looking to make their mark in the public sphere, too. In early March, Buddhist students armed with nothing more menacing than joss sticks staged a protest against the Buddha Bar. They argued that a place called Muhammad Bar or Jesus Christ Bar would hardly meet with approval. The students demanded that the hotspot's name be changed, something the Jakarta Legislative Council has agreed must be a prerequisite for the Buddha Bar to reopen. At the same time, Indonesian Corruption Watch, a local NGO, has raised questions about whether the dining lounge, which is located in a Dutch colonial building that was restored with public funds, is contravening a cultural-conservation regulation that prohibits historic buildings from being used for private gain.

The Buddha Bar is part of a French franchise that made its mark with popular albums that mixed world-music elements with a lounge-y vibe. The international eateries serve up a pan-Asian menu and aesthetic that clearly uses the Buddha more as a cultural marker than as a religious icon. Restaurant souvenirs for sale include a Buddha snow globe — not the kind of thing a member of the faithful would be likely to purchase. Indeed, the Buddhist reverence toward compassion notwithstanding, a Middle Way might not be so easy to reach in the current climate in Jakarta.

• MUHAMMADIYAH CALLS ON ISLAMIC WORLD TO FORM SOLIDARITY NETWORKS Muhammadiyah, Indonesia's second largest Islamic organization, ended its four-day meeting here on Sunday with a call on Islamic countries to build concrete solidarity networks to handle conflicts and poverty in predominantly Muslim countries.

The organization also called on Muslims all over the world to increase their solidarity with their fellow Muslims who are falling victim to oppression like in Palestine, Irak and Sudan.

It also urged the government to appoint religious affairs attaches at Indonesian embassies in the countries where Indonesian migrant workers are employed to nurture their religious life.It also asked the developed countries and developing nations to build a more civilized new world order capable of developing democratic principles on a world-wide scale, refraining from double standards, and putting emphasis on dialogs and mutual respect for each country's sovereignty in the spirit of justice and equality. Environmental Front

270 • Java on highest volcano alert INDONESIA has raised its volcano alert for Mount Semeru in East Java to maximum, warning of potentially dangerous lava flows, the head of the country's volcanology center said yesterday.

The 3,376-meter Semeru is one of the most active volcanoes on Java island. Seven people were killed by the mountain's heat clouds in 1994.

The alert status was raised on Friday afternoon after the number of volcanic quakes indicated there may be a bigger eruption, said Surono. • Malaysia Political Front

• Anas rallies Malaysians to make politicians wake up to the real deal On this first anniversary of Malaysia’s political tsunami, businessman Anas Zubedy has a dream.

Like American civil rights leader Dr Martin Luther King, who dreamt of seeing his countrymen united in spite of their differences, he too wishes for the day when political rivals in Malaysia can put aside their disagreements and work together.As he sees it, a truce from both sides would be the most meaningful gift they can give us today.Man with a dream: Anas hopes that Najib and Anwar would shake hands and go on with running the Government soon.

Anas, who stressed that he is no Dr King, said he was so worried about the state of the country that he decided to take it upon himself to send a message that many Malaysians want to convey to politicians: Stop the power quest and get on with the real work of governing.He did this by boldly taking out the now famous full-page advertisement – in the form of a letter – in The Star recently.Like many others, Anas said he was anxious about Malaysia’s future and beginning to fear the worst.Anas’ mission now is to rally Malaysians to demand for the two-year truce from political leaders.

• Malaysia clears top figures in Anwar beating Malaysia Wednesday cleared two top officials of allegations of manipulating evidence relating to a infamous beating inflicted on opposition leader Anwar Ibrahim in 1998.

Anwar Ibrahim

Anwar, a former deputy premier who was sacked and jailed on sodomy and corruption charges that he says were politically motivated, dismissed the decision as a "cover-up."

271 He had accused police chief Musa Hassan and attorney general Abdul Gani Patail of manipulating evidence into an investigation into the beating he received while in police custody after his arrest.The incident saw him brought into court with a black eye, in an image which was splashed on front pages worldwide.

On Wednesday, the minister in charge of legal affairs, Mohamad Nazri Abdul Aziz, told parliament that Abdul Gani and Musa had been cleared after an investigation by a panel of three former judges which began last July.

Anwar said he was "disgusted" with the finding and said the government did not provide full details of his complaint to the investigating panel.

The police chief has already taken action against Anwar for alleged slander over the allegations of manipulating evidence. A hearing into that case has yet to begin.At the time Abdul Gani was the prosecutor in the case against Anwar, and Musa was a police investigating officer.Anwar, who led the opposition to unprecedented gains in elections a year ago, now faces another sodomy trial after a former aide made new accusations which the opposition leader has dismissed as a plot to end his career.

• Political impasse affecting Perak’s economy(economic) Although the Perak government had stated that the state’s investment climate remained robust, manufacturers here said the state’s month-long political gridlock is further worsening its economic health.

The Perak branch of the Federation of Malaysian Manufacturers (FMM) chairman, Gan Tack Kong, said two multinationals that had earlier expressed interest in investing in the state were now reluctant due to the political uncertainties.He said both companies had approached the federation to enquire on the state’s political situation since the fall of the Pakatan Rakyat government.The two multinationals were expecting to invest tens of millions of ringgit in the state, he added.

Gan said the federation had reassured them, including other potential investors, that Perak was a safe place to invest in.

Even lawyers who depended on conveyance work have been affected by the gridlock.Echoing Gan’s sentiments, a legal adviser of a leading developer in the city said lawyers like him have been badly hit with fewer development projects due to the slowdown.Meanwhile, the state government has assured the public that new local councillors were being selected and that there was no standstill in the administration.State Health, Local Government, Consumer Affairs, Environment, Public Transportation and Non-Islamic Affairs Committee chairman Dr Mah Hang Soon said things would be back to normal in three weeks.He noted that delays in the appointment and swearing-in of local councillors had been due to internal problems within the previous government,

272 adding that normally all appointments would be finalised by December the year before.Former executive council member Nga Kor Ming expressed sympathy for businesses and the public for the political and economic situation of Perak.

He urged both parties to call it a day and to pave way for new elections as it was the only way to resolve the political crisis.

• Parallels between Razak and Najib TOWARDS the end of one of his meetings with editors a few weeks ago, Datuk Seri Najib Razak was casually asked how he felt about his impending ascension to the prime ministership with the country going through such a turbulent time.

Datuk Seri Najib Razak says his father took over during more challenging times In the thick of verbal activities going on around him at that moment, that question unfortunately got lost in significance. But the deputy prime minister, ever his cool self, somehow did manage a spontaneously succinct reply which I thought was noteworthy.He just smiled and said: "It's nothing compared with what my father went through because he took over the reins in far more challenging conditions. The country was reeling from May 13."

Then a distraction forced the subject to be abruptly cut off.But prevailing conditions do have a way of bringing out this kind of topic in conversations every now and then -- like in the chat I had with a minister a few days ago.

Yes. Tun Abdul Razak Hussein, Najib's father, first assumed the national commander's role as head of the National Operations Council in 1969 when the going was so rough and furious. The May 13 race riots had just broken out (till today it is dubbed the darkest period in the nation's history), and as a result of the disturbances, emergency rule was declared and the Constitution was suspended for more than a year with the NOC running the country.There was much tension in the air, the ruling Alliance did very badly in the May 11 general election, Penang fell to the opposition led by Gerakan (Kelantan remained under Pas), Umno was split following pressure on party president and prime minister Tunku Abdul Rahman to quit, race relations were at a very low ebb and the government was faced with subversive threats from communist insurgents.

Notice the parallels of some of the above with the present, the convergence extending even to a racially-charged funeral procession held for a chauvinistically-proclaimed martyr who had been shot by police just before May 13.

The similarities don't end there -- there were accusations that the MCA, then the only Chinese partner in the Alliance, was too pro-Malay; and, coincidentally, a few days before Razak formally took over the helm, Kuala Lumpur was strangely also paralysed by floods.

273 Though he was already running the country by virtue of his position as NOC head, Razak only officially became Umno president at the party's general assembly -- its first since the riots -- on Jan 23, 1971. With that he became Malaysia's second prime minister.

Razak, as Tunku always mentioned, was a workhorse. In the book K. Das and the Tunku Tapes compiled by Kua Kia Soong, Tunku had this to say about his successor:

Records show that this no-nonsense approach to prevent a recurrence of May 13 was quite evident when Razak took over as he immediately announced his priorities, including amending the Constitution to ensure that "sensitive issues" would not be challenged simply through blatant politicking and abuse of the democratic process.

And there lies the inevitability of lining up the similarities in the challenges and uncanny parallels faced by dad and son -- in different eras, of course -- with Najib well on the road to becoming the country's sixth prime minister 40 years on.

Which brings me back to the chat with the minister late last week which, given the current climate as well as the background of the person I was speaking to, was an eye- opener.

The senior politician said the challenges facing Najib seemed to be as difficult if not more demanding than those faced by his father despite the tribulations of May 13. But, like his father, Najib would sail through, he added.

In addition to all those parallels mentioned above, the minister said Najib would have to contend with not only MCA but also other senior Barisan Nasional partners losing support, particularly the MIC and Gerakan.Then, the minister said, Najib was also up against a concerted smear campaign by the opposition, bloated in proportion and viciousness by the huge strides in information and communication technology.

Then, of course, there is the looming global economic crisis which is said to be the worst in history. Najib is tackling that today by unveiling another stimulus package in Parliament.So I asked the minister how he sees Najib in the face of all these challenges.

• Movement 'not controlled by opposition parties' movement against the use of English in the teaching of Mathematics and Science (GMP) yesterday denied it was being directed by certain groups, including the opposition parties.

GMP chairman Datuk Dr Hassan Ahmad said the presence of members of opposition parties at Saturday's illegal gathering was "as an expression of their support".Hassan was commenting on the statement by Education Minister Datuk Seri Hishammuddin Hussein on Sunday that the gathering was masterminded by the opposition, based on the presence of several of their leaders at the demonstration.

274 The gathering organised by the GMP, which was originally aimed at handing over a memorandum to the Yang di-Pertuan Agong, was also joined by several opposition party leaders including Pas president Datuk Seri Abdul Hadi Awang, besides a small group of demonstrators who were seen carrying the logos of several opposition parties.

Hassan said the GMP was not a movement that was politically inclined but upheld the principle of reverting to the use of Bahasa Malaysia in the teaching of Maths and Science.

He said the GMP would hold a meeting with Prime Minister Datuk Seri Abdullah Ahmad Badawi before the Umno general assembly to explain the movement's stand.

He said the government should revert to the use of Bahasa Malaysia in the teaching of the two subjects, and the mother tongue in Chinese and Tamil schools besides improving the quality of English proficiency among teachers and students.

• Batang Ai by-election candidate to be revealed on Saturday The Barisan Nasional candidate for the Batang Ai by-election is expected to be known on Saturday.Chief Minister Tan Sri Abdul Taib Mahmud told reporters yesterday that the state Barisan would meet on that day to discuss who would represent the coalition in the coming by-election.

Asked whether he would announce the candidate after the meeting, he replied: “Yes.”Parti Rakyat Sarawak president Datuk Dr James Masing had last week submitted a name to the Barisan leadership for consideration.The name is widely speculated to be that of senior agriculture officer Malcolm Mossen Lamoh.The Batang Ai seat fell vacant with the death on Feb 24 of Datuk Dublin Unting Ingkot, PRS vice president and state assistant minister for sports and agriculture.In the 2006 state election, Unting defeated Nicholas Bawin Anggat, who stood on a Sarawak National Party ticket, by 806 votes in a straight fight.Bawin, now Sarawak PKR deputy liaison committee chairman, is one of two front-runners for the Opposition candidacy. The other is former Lubok Antu MP Jawah Gerang.Nomination for the by-election is on March 29 and polling on April 7.

• Umno corrupt: survey Respondents also describe country's most powerful political party as out of touch UMNO has received a slap in the face just ahead of its key annual meeting, with many voters polled in a survey seeing Malaysia's biggest political party as corrupt and out of touch with the ground.

Respondents to the survey also said that International Trade Minister Muhyiddin Yassin was the best choice for the deputy prime minister's position, a contrast from Umno pundits, who expect another leader to emerge as the new No. 2.

GENUINE CONCERN

275 '(The public) have strong views about the problems affecting the party (Umno) while at the same time harbour high hopes that those elected...will be able to fulfil their wishes.'

The 1,031 respondents also felt that the views of ordinary Malaysians should be considered while picking leaders in internal Umno polls, going against the conventional political wisdom that the leaders are picked only by party members.

The party's chiefs are currently elected by about 2,500 top Umno cadres in elections that are held every three years. The survey was conducted last month by independent pollster Merdeka Centre for Opinion Research. Respondents comprised 57 per cent Malays, 31 per cent Chinese and 12 per cent Indians based on random sampling.

The survey showed that a year after the watershed general election that empowered the opposition, voters were clamouring for a bigger say in how the country's leaders were picked. From March 24 to 28, Umno will hold its annual assembly, which incorporates the triennial party polls. Strategic Front

Economic Front

• Sabah, Sarawak pin hopes on stimulus plan Hopes are high in Sabah and Sarawak that the second economic stimulus plan, details of which are to be released today, will give attention to the needs of the rural people.

Members of parliament from these states are hoping for more allocations for infrastructure projects, especially in the interior. Hulu Rajang MP Datuk Billy Abit Joo said rural folk in Sarawak faced hardship despite getting development allocation and financial assistance.

For example, the people relocated because of the Bakun hydro-electric dam project were facing financial difficulties 10 years later, he said. Abit said he also hoped that projects would be carried out under the Ministry of Rural Development to provide the basic needs of the people.

Some MPs have suggested that the stimulus plan provide emergency allocation for urgent infrastructure projects, although they were aware that the plan was geared more towards stimulating the economy at the macro level. Sepanggar MP Datuk Eric Enchin Majimbun said he hoped that an allocation would be given for the construction of a new building for the Queen Elizabeth Hospital as the existing building had been declared unsafe.

Kapit MP Alexander Nanta Linggi said the government should allocate money for infrastructure projects in rural areas to stimulate the economy. Nanta said that while he understood that the stimulus package was designed to stimulate the economy at the macro

276 level nationwide, the government should ensure that its effects and benefits were spread out. For Baram MP Datuk Jacob Sagan, the two big floods which hit the interior areas in the northern region of Sara-wak showed that help was needed.

• Malaysia to build budget air terminal Malaysia’s government’s announced yesterday (Wednesday 11 March) that it will build a US$540 million low-cost air terminal by 2011. In a move to ease budget carrier AirAsia’s concerns about its ability to continue growing, Malaysia Airports Holdings’ managing director Bashir Ahmad said that the terminal will be built near the main Kuala Lumpur International Airport, with a capacity to handle 30 million passengers a year, and should be ready by the second half of 2011. “We’ve found the location and will be announcing it at the right time.”

AirAsia has said a new, bigger terminal is crucial to its survival with passenger traffic forecast to reach 30 million and its fleet to grow to 184 by 2013. The airline was worried because the existing terminal, also located near the main international airport, can accommodate only 15 million passengers annually and doesn’t have enough aircraft parking bays. Last month the government rejected AirAsia’s plan to build and operate a US$432 million budget terminal in southern Negeri Sembilan state.

The carrier’s long-haul sister company, AirAsia X, launched its first flight from Kuala Lumpur to London on Wednesday, marking a new stage in the group’s international expansion. The company said in a statement that the inaugural flight took off for London’s Stansted Airport with 286 passengers on board after almost a two-year delay.

• Palm Oil May Drop 23% on Higher Supply, Analysts Say (Update1) Palm oil futures may tumble as much as 23 percent this year because of lower energy prices and increasing vegetable oil supplies, according to analyst forecasts at an industry conference in Kuala Lumpur.

The commodity may drop to 1,500 ringgit ($407) a metric ton in the second half, said Dorab Mistry, a director of Godrej International Ltd., one of India’s largest buyers. The cooking oil may trade between 1,400 ringgit and 1,500 ringgit in the next six months, said James Fry, managing director of research company LMC International Ltd.

Palm oil, used in food and fuel, has already slumped 49 percent to 1,920 ringgit a ton in the past year on record output in Indonesia and Malaysia, the biggest producers. Crude oil has plunged 61 percent in the past year in New York to $43 a barrel as the worst financial crisis since the Great Depression curbed economic growth and slashed demand for energy.

277 The two commodities are the world’s most produced and consumed edible oils. Indonesia and Malaysia supply about 90 percent of the globe’s palm oil while the U.S., Brazil and Argentina are the largest growers of soybeans, crushed to make cooking oil and meal for livestock feed.

Biofuel Uncompetitive

Palm oil may trade at less than $350 a ton in the first half of this year if crude oil goes to $35 a barrel, Fry predicted Dec. 4. Analysts including Fry estimate biofuels are uncompetitive without government subsidies if crude oil stays below $70 a barrel.

Palm oil may trade between 1,700 ringgit and 2,300 ringgit a ton in the next four months as soybean oil may “see a new low this year in the May-June period with more planting,” Anne Frick, senior oilseed analyst for Prudential Financial in New York, said at the conference. Soybean oil may reach a low of 28 cents a pound in May or June, she said. Soybean oil was at 30 cents in Chicago today.

‘Huge Surplus’

Palm oil may trade between 1,550 ringgit and 2,000 ringgit for the next four months “as I struggle to assume a 1.5 percent gain in world demand for vegetable oils this year in this economic climate,” said Richard Kastilani, a director at Tropical Oils Products Pte.

Still, Thomas Mielke, executive director of the Oil World publication, said palm oil may average $640 a ton in Rotterdam, including insurance and freight, in the first half. Futures in Kuala Lumpur averaged $510 a ton so far this year and $601 in the second half of last year, according to Bloomberg data.

Argentina is the world’s biggest soybean oil exporter. The U.S. Department of Agriculture forecasts the country will ship 5.3 million tons in 2008-09, followed by Brazil with 2.1 million.

• Foreign investors seen staying in KL bourse FOREIGN shareholders are expected to remain in the Malaysian market due to its stability despite the ongoing global financial uncertainty, Securities Commission (SC) market supervision executive director, Datuk Ranjit Ajit Singh, said today.

He said the increase in the sales of shares by foreigners was typical of a market where there was a lot of deleveraging and repatriation of funds, especially in times like this.

The country's level of foreign shareholding stood at 16.6 per cent, down from over 19 per cent in early 2008.Ranjit said in the last 10 years, the lowest level of foreign shareholding was 15 per cent in 2002.Meanwhile, SC chairman, Datuk Seri Zarinah Anwar, said it would continue to sustain confidence through proper regulation and surveillance in

278 promoting foreign shareholding and investment in the market.On the issue of corporate bond market, Zarinah said, it was an important avenue for fund raising and it would be at a healthy level this year.

She said the SC has received five applications for initial public offerings (IPOs) this year and had approved only one, adding that the decline in IPO was reflective of global trend.Zarinah said in its bid to mitigate immediate effects of the economic downturn this year, the SC has outlined its focus on investor protection to strengthen confidence and would facilitate greater access to capital market.

She said the Main Board and Second Board would be unified board, entry requirements streamlined and listing of special-purpose acquisition companies would be allowed to promote private equity investments. Social Front

• Face obstacles as one, Muslims told Sultan of Kedah Sultan Abdul Halim Mu'adzam Shah has called on Muslims to unite to face challenges and obstacles.

Students of the Penggerak Dakwah Orang Asli taking part in the state-level Maulidur Rasul celebration at the Sultan Ahmad Shah Silver Jubilee Hall in Kuantan yesterday. The ruler said there was strength in being a united force instead of standing alone.

Also present were the Sultanah of Kedah Sultanah Haminah Hamidun and Raja Muda of Kedah Tunku Abdul Malek Mu'adzam Shah.They were joined by Menteri Besar Datuk Seri Azizan Abdul Razak and several state executive councillors from the Pas-led state government.The sultan called on Muslim civil servants in the state to adopt the Islamic way of life in carrying out their duties.He said this was to ensure that civil servants performed their duties with discipline and good manners.

• Employers urged to review salaries of locals The Ministry of Human Resources on Thursday urged private sector employers to review salaries offered to locals, making them more attractive, so that they can fill jobs vacated by foreigners.

Its minister Datuk Dr S. Subramaniam said if the salaries were not attractive enough, Malaysians would opt to work abroad where the remuneration was much better.

At the same time, he urged Malaysians who lost their jobs as a result of the current economic crisis "not to be too picky" as the government had lined up retraining programmes and other assistance for them.

279 He also said the increase in the foreign worker levy as announced in the mini budget on Tuesday would cause industries to lose more foreign workers because of the factor of affordability. The Manpower Department was also redoubling efforts to help jobless Malaysians find jobs, he said, adding that some 25,000 people had registered at its jobs portal in search of jobs.

He added that, to date, some 100,000 Malaysian workers had been temporarily laid off while from October last year to February, the work permits of 20,000 foreigners were cancelled. Environmental Front • Philippine

Political Front

• Philippine Army-based coop holds first automated elections A Philippine Army (PA) based cooperative implemented its first automated elections of its board of directors recently.The Philippine Army Finance Center Producers Integrated Cooperative or PAFCPIC Board of Directors (BODs) held its first automated elections on February 28, 2009.

The PAFCPIC did it to ensure that the results had no intervention, not tampered, reliable, and trustworthy.Lt. Col. Josefa Berbigal, elections committee chairman, said:?Voting started as early as 9:00 a.m. and lasted up to 3:00 p.m. In the manual system, members had to wait until the next day to know the election results. Now that the automated elections are implemented, it would only take a few minutes to know the results.? Berbigal said the automated elections were proposed two years ago and was only approved on September 2008.

Brig. Gen. Fernando Sabat, an Information Technology expert, the Assistant to the Vice President and Head of the IT Division facilitated its full implementation this year with the help of another IT expert.With a budget of more or less P400,000, PAFCPIC purchased 20 touch screen computers, which they used during the elections.Said computers were distributed to the PAFCPIC?s branches nationwide.More than 20,000 out of 64,000 regular members cast their votes last Feb. 28.Regular members are active military and civilian employees and PAFCPIC employees.But retired military personnel, members from other branch of services, or outsiders known as Associates are not qualified to vote.

The BODs acts as PAFCPIC?s policy making body. Half of the BODs are being elected every year for the continuity of the projects.

280 With the automated elections, members need only to touch the picture of their chosen candidates on screen. Votes are automatically computed.?But since the system is still new, we kept a hard copy for verification or double checking purposes, if someone asks for it. But we intend to implement this system of automated elections from now on since we conduct elections every year. It is efficient and accurate,? said Berbigal.(PNA)

• Daughter of NPA leader found dead Davao City, Philippines: A daughter of a senior communist rebel leader was found dead in the southern Philippines, a day after she was abducted by unidentified gunmen, a police report said yestterday. The body of Rebelyn Pitao, 20, was fished out of a river in Carmen town in Davao Del Norte province, 975km south of Manila, late on Thursday.

The victim, a teacher, was riding in a tricycle on the way to her home in the village of Bago Gallera when gunmen aboard a van blocked the tricycle and forcibly dragged her into the vehicle. Pitao’s family blamed the military for Rebelyn’s death, saying she had no enemies that would have a motive to abduct and kill her.

A local human rights group also alleged that the military has been targeting Parago’s relatives to get to the rebel leader. It noted that in June, a younger brother of Parago was shot dead by suspected government forces in Tagum City, also in Davao Del Norte.

But Major General Raymundo Ferrer, a regional military commander, said soldiers were not involved in the kidnapping and killing of Parago’s daughter.

• Mindanao rally to urge talks resumption Peace advocates in Mindanao will assemble at various points regionwide on March 18 to call again for the resumption of peace talks between the government and the Moro Islamic Liberation Front (MILF).

In a statement posted on the Catholic Bishops’ Conference of the Philippines’ website, the Mindanao People’s Caucus (MPC) said it would bring people of Mindanao to the streets on March 18 for the Mindanao Peace Power Day.

The MPC said the aims to educate the people about the ancestral domain struggles of the Bangsamoro and Indigenous Peoples of Mindanao to generate more support for the Mindanao peace process from Luzon, Visayas and the international community.

The MPC said an international conference on Mindanao will also be held on March 16 and 17.

Meanwhile, a cross-section of Southern Mindanao is optimistic of a fruitful March 11-13 tripartite review in Manila of the September 2, 1996 peace pact between the government and the Moro National Liberation Front (MNLF). Sayeed Kaseem El-Masry,

281 Organization of Islamic Conference special envoy to Southern Philippines, will preside over the tripartite meeting at the Heritage Hotel in Pasay City.

Avelino Razon, presidential adviser for the peace process, said part of the agenda of the three-day conference is the government-MNLF Joint Working Group proposal to amend certain provisions of Republic Act 9054, the Organic Act of the Autonomous Region in Muslim Mindanao (ARMM).

Five other major topics include the Shari’ah and judiciary; Special Regional Security Force and the Unified Command for the ARMM; natural resources and economic development issues; political system and representation in government and education, he added. Razon will lead the Philippine contingent, while Undersecretary Nabil Tan of the Office of the Presidential Adviser for the Peace Process (OPAPP) will be panel chairman for the MNLF.

• MILF harboring Abu Sayyaf, says AFP official(Social) The Armed Forces of the Philippines (AFP) on Monday accused the Moro Islamic Liberation Front (MILF) of harboring members of the Abu Sayyaf Group (ASG) after reports surfaced that an ASG member is allegedly hiding in MILF grounds.

According to AFP Western Mindanao Command (Wesmincom) spokesperson Lt. Steffani Cacho, the military has demanded that the MILF explain why Mulong Pula is allegedly hiding in an MILF-controlled area in Tuburan, Basilan.

Earlier, MILF spokesperson Eid Kabalu said that Pula is an Abu Sayyaf member and not MILF as alleged by the military.Kabalu, however, said that the MILF in Tuburan is not giving sanctuary to the ASG in the area. "They may be in Tuburan but definitely not inside [an] MILF area or community, we assure you," Kabalu said.

But military intelligence information allegedly revealed that Pula was seen hiding in an MILF camp together with three kidnapped public school teachers.Cacho said that the MILF must arrest Pula and rescue the teachers if they are sincere in helping the government.

The military last week reportedly confirmed that Mulong Pula is now holding three teachers from Zamboanga City, identified as Janette delos Reyes, Rafael Mayonado and Freires Quizon, who were abducted on the shore of Landang Gua on January 23 this year.

• Military to reduce insurgency to ‘irrelevance’ THE military’s Southern Luzon Command is confident it will be able to accomplish the 2010 target to reduce insurgency problem in the country to “irrelevance” even before the target date a military official said Sunday.

282 Lt. Gen. Delfin Bangit, chief of the Armed Forces Southern Luzon Command said that the assigned number of communist fronts that must be dismantled by 2010 is possible, in fact, he is confident that the command could accomplish it even before the end of 2009. .

Bangit explained that dismantling fronts doesn’t necessary mean that they would reduce the strength of the enemy to zero, but to a level that it could be handled by the police. Earlier, Armed Forces Officer chief Alexander Yano, expressed optimism that the problem of the country on communist insurgency can be achieved, and even with the some occasional encounters there is actually a steady decline on the communist rebels’ strength. The military for this year is targeting to dismantle 54 communist fronts out of the remaining 62 for them to accomplish the 2010 directive of President Gloria Arroyo.

Bangit is one of the ranking military generals included in the shorts list of candidates to succeed Yano this June. He said they are currently targeting the dismantling a total of four fronts this year and he is confident they would be able to achieve

• Arroyo signs law claiming islands Philippine President Gloria Macapagal Arroyo has signed into law a bill defining the country’s territorial boundaries and laying claim to disputed areas in the South China Sea, a top aide said yesterday.

Presidential Executive Secretary Eduardo Ermita said Arroyo signed the Baselines Law on Tuesday despite a protest by China. Aside from marking the Philippines’ maritime boundaries, the Baselines Law also identified a “regime of islands under the Republic of the Philippines” or areas over which the country exercises “sovereignty and jurisdiction.”

These areas include the Scarborough Shoal - a group of islets, atolls and reefs claimed by China - and the Kalayaan Islands, a part of the Spratlys, which are claimed in whole or in part by China, Brunei, Malaysia, Taiwan and Vietnam. China reiterated its “strong opposition and solemn protest” of the law, saying the disputed areas “have always been parts of Chinese territory,” according to a statement by the Chinese embassy in Manila.

“China has indisputable sovereignty over these islands and their adjacent waters, their claim is illegal and invalid” the statement said. DPA Strategic Front

• China in disupute with Malaysia, Philippines over Island China, which has a long standing dispute with Japan over an island, has now entered in a tiff with Malaysia and the Philippines over another island in the South China Sea.The Chinese foreign ministry said on Friday that China has indisputable sovereignty over the Nansha Islands and adjacent waters.

283 It was reacting to a statement from Malaysian prime minister Abdullah Haji Ahmad Badawi on Thursday claiming Malaysia's sovereignty over these areas. Chinese foreign ministry spokesman Qin Gang said Beijing was prepared to resolve the dispute through consultation.

The two houses of Philippines parliament adopted resolutions in late January and early February laying claim on the Nansha islands. China immediately reacted saying that the decisions taken in Manila were amounted to a violation of China's sovereignty. China regards all these islands as inalienable parts of Chinese territory.

The Nansha Islands is a group of more than 650 reefs, atolls, cays and islands in the South China Sea. Nansha has an uninhabited oceanic atoll called the Danwan Reef.

Beijing has been involved in a serious battle of words over Tokyo over the Diaoyu Islands. Japanese foreign minister Hirofumi Nakasone recently caused a lot of heart burning in China by saying that the Diaoyu islands are part of the Treaty of Mutual Cooperation and Security between Japan and United States. He meant that the existence of the treaty made it impossible for Tokyo to accept China's claims on the island.

Chinese foreign ministry spokesman reacted saying that any treaty between Japan and the US should not hurt the interest of China.

The Japanese foreign minister has also expressed concern over China's military build-up, which is evident in the recent hike in defense expenditure. The island dispute is also affected the talks between Beijing and Tokyo on joint exploration of oil and gas in East China Sea, sources said.

• Philippines enacts territorial law protested by China, Vietnam amid disputes over islands The Philippine president has signed a law affirming sovereignty over islands also claimed by China and Vietnam, an official said Wednesday, sparking protests over the control of strategic South China Sea islands.

The legislation, signed Tuesday by President Gloria Macapagal Arroyo, reaffirms Philippine sovereignty over the more than 7,100 islands in its archipelago, Executive Secretary Eduardo Ermita said. It also claims outlying islands in the Spratly chain and Scarborough Shoal — two regions in the South China Sea.China claims sovereignty over both chains. Vietnam and others have long laid claim to the Spratlys.

The Chinese Embassy issued a statement expressing its "strong opposition and solemn protest" over the signing of the law, and insisted China "has indisputable sovereignty over these islands and their adjacent waters."Earlier, China's Foreign Ministry summoned a Philippine Embassy official to protest the passage of the bill in the Philippine Congress.

284 Vietnam also urged the Philippines to refrain from taking action that might complicate the dispute.Foreign Affairs official Henry Bensurto said the Philippines passed the law not to reiterate its claims over the Spratlys and Scarborough Shoal but to define the baseline used to determine its extended continental shelf.The U.N. has asked the Philippines and other countries that signed the U.N. Convention on the Law of the Sea to submit the dimensions of their claimed continental shelf by May 13. The convention, which came into force in 1994, defines the maritime limits of its signatories.

The Spratlys, believed to be rich in oil, gas and fish, consist of about 100 barren islets, reefs and atolls dotting the world's busiest shipping lanes in the South China Sea.Vietnam, China, Taiwan, the Philippines, Malaysia and Brunei each claim all or part of the low-lying islands.

Economic Front

• EDITORIAL: Domestic borrowing and fiscal reforms WHAT we've warned about in this space has come to pass. The government announced that it would raise its domestic borrowing program to bridge an expected widening in its budget deficit.

From an original estimate of about one percent of the economy as measured by the country's gross domestic product (GDP), the ratio would double, indicating a worsening of its revenue position.Consequently, the Arroyo administration would fail to meet its promise of bringing the government's finances to a balance by the end of its term.

Its successor--provided an election was held next year as scheduled--would inherit a problem not of its own making.By their own estimates, the current set of economic managers programmed a revenue shortfall of 1.5 percent of GDP next year, one percent in 2011 and 0.5 percent in 2012.This means that the goal of putting the economy on a more sustainable track would be pushed back further.

A perennial fiscal deficit creates a number of dysfunctions, as public spending is crimped on account of the government's failure to raise enough money through its taxing powers.Its problems become more pronounced during an economic slowdown, such as the one the world is experiencing right now.

In these situations--when consumers are cautious about spending or have little money to spend and businesses are scaling down their operations--governments are called upon to pump-prime their domestic economies through massive infrastructure and social service spending.

Economists call this the Keynesian solution offered by the late economist John Maynard Keynes following the Great Depression and the subsequent world war.In the current

285 global slowdown, the Philippines is not alone in planning to undertake borrowings to enable it to finance its fiscal stimulus package. Bigger countries that have gone into recession such as the US have laid down their own stimulus plans, requiring huge borrowings on their part.

The scramble to raise money from investors obviously would jack up activity in the debt market, pushing up yields and squeezing out small-time borrowers like the Philippines from the action.

This perhaps explains why the government plans to raise its borrowing from domestic sources, since it doesn't take a genius to figure out that it would be locked out of the financial markets given its below-investment grade rating and the more sizeable issuances of other entities like Uncle Sam.The question now is whether the Philippines can borrow enough money--if at all--from domestic sources, especially with a string of debt issuances by blue-chip companies. Only this week, the Bureau of Treasury failed to borrow money through the auction of 10-year bonds or IOUs.

In ignoring the bureau's zero-coupon bond issuance, market players cited the higher yields (read: returns) they can get from issuers like Globe Telecom, San Miguel Brewery, among a growing number of publicly-listed companies planning to raise money through debt issuances.

But as the international creditor community has been urging, the Philippines must not put off its fiscal reform program. The pending tax legislation should be enacted into law so that remaining loopholes--and there are many--are plugged.

• Global fiscal losses hit $50tr, ADB says The global financial crisis slashed the value of financial assets worldwide by $50 trillion (Dh183.5 trillion) last year, a study commissioned by the Asian Development Bank (ADB) said Monday. Financial asset losses in developing Asia, which suffered more than other emerging markets, totalled $9.6 trillion, or just over one year's worth of developing Asia's gross domestic product, the study said.

Kuroda, ADB president, said Asia was hit harder than other parts of the developing world because its markets have expanded more rapidly.The ratio of financial assets to GDP rose to 370 percent of GDP in developing Asia in 2007 from 250 per cent in 2003, the study said.In comparison, Latin America's ratio only rose by modest 30 per cent with the result that estimated losses on financial assets were a much lower $2.1 trillion, or 57 per cent of GDP.Based on the study, the estimates measure the losses in equity and bond markets, including those based on mortgages and other assets, and the depreciations of currencies against the US dollar.

286 The estimates did not include financial derivatives such as credit default swaps that further multiplied the size of the financial markets. The data provides clear proof of the close connections between the markets and economies around the world, leaving few, if any, countries immune to financial or economic fallouts elsewhere, the study said.

Another ADB-commissioned study said South Asian countries could weather the financial crisis by taking both short- and long-term measures to stimulate their economies.

The subregion has been hit by capital outflows and weaker commodity prices, and faces a sharp slowdown in exports and remittances as global troubles worsen. The ADB study suggested a number of measures to cushion the impact of the crisis, including rate reductions in India and Sri Lanka. It also urged India and other countries to consider incentives to encourage overseas workers to remit money home, such as special savings instruments and possible currency swap arrangements to keep financial systems stable.

• ADB: Global crisis slashed $50-T from financial assets in 2008 A study commissioned by the Asia Development Bank entitled "Major contagion and a shocking loss of wealth," said the global economic crisis had slashed the value of financial assets worldwide by a massive $50 trillion in 2008. it said developing nations in Asia, including the Philippines, experienced a $9.6 trillion drop in their stock and bond markets and in the depreciation of their currencies against the US dollar.

• Philippines expects bigger rice harvest amid global crisis The Philippine government has raised its allocation for agriculture to support the ambitious plan of rice self-sufficiency, but analysts said it remains debatable whether the increased budget can boost the rice production as expected this year and help realize the target to become self-sufficient by 2010.

The Department of Agriculture forecasts a rice production to increase by 4.4 percent to 17.5 million metric tons this year, and expects to produce nearly 20 million tons in 2010.

Rice is the country's staple and its supply a key determinant of national inflation. The shortage of rice and soaring fuel prices in early 2008 pushed June inflation rate to a 14- year high of 11.4 percent. Rolando Dy, executive director of the Center for Food and Agribusiness at the University of Asia and the Pacific, welcomed the government's decision to increase investment in a long-neglected sector. But he didn't think that having money alone will boost rice yields.

A study published by the Berlin-based Transparency International noted what a huge amount of government money for irrigation were lost to corruption in the Philippines.

It is never too much to emphasize the role of irrigation, especially in a country which has been importing one million to two million metric tons of rice each year -- equivalent to

287 ten percent of its total consumption -- just to feed its growing population. Analysts said rice importation isn't the best way to attain food security. The global rice market is thin with only seven percent of harvested rice traded. Exporters like Thailand and Vietnam also have rice-eating populations and will not hesitate to stop exports to protect their domestic consumers. But the country's geographical limitations (i.e. it's an archipelagic country with a limited land base and is located at a typhoon belt) and the neglect of the farming sector over the years has made the Philippines the world's biggest rice importer. Data from the World Bank and the Asian Development Bank indicated that in 2000 to 2004, Thailand, the world's biggest rice exporter, spent 7.3 percent of total public sector on the agriculture sector. In contrast, the Philippines could spare only half that ratio for its agriculture sector.

Interestingly, it's the current global economic crisis that led to bigger investment in agriculture. Philippine economic planners, in their attempt to cushion the impact of the crisis, decided to raise the allocation of several government agencies, providing emergency employment opportunities for retrenched workers.

The Department of Agriculture, which received a 25.4 billion pesos (about 520 million dollars) budget last year, will be allotted 42.6 billion pesos (about 870 million dollars) this year. About 40 percent of this year's budget will go to irrigation, according to Philippine Agriculture Secretary Arthur C. Yap.

Building new infrastructure, such as dams, is expected to create jobs and a key component of the Philippine government' s stimulus package.

Jessica Reyes-Cantos, lead convenor of the advocacy group Rice Watch and Action Network said instead of constructing new dams, it's more efficient to just repair and rehabilitate existing ones. Domingo might get what she's wishing for. In a statement issued earlier, Yap said his department will implement a seven-point plan to boost productivity and create new jobs. Apart from funding irrigation projects, the department will also spend on education and extension programs; projects that will help farmers to produce organic fertilizer; strengthening of the Agricultural Guarantee Fund Pool; production of quality certified seeds; establishment of post harvest dryers and milling centers; and ensuring reasonable farm gate prices.

• Consumer confidence up in Philippines amid global crisis Philippine consumer confidence on the local economy has improved thanks to expectations of lower oil and food prices, the country's central bank said on Thursday.

Concerns that the global economic crisis may lead to more massive lay-offs continue to keep most consumers pessimistic, the central bank said in a statement. This is why the overall consumer confidence index remains negative. But the index in the first three months of the year, which at negative 25.7 percent, is 14.6 index points higher than that

288 registered in the fourth quarter of 2008 and 6.4 index points higher compared with the first quarter last year.

Philippine central bank deputy governor Diwa Gunigundo said in Thursday's press briefing that news that the Philippine economy is resilient amid the economic crisis helped in boosting consumer confidence.

There's a slight uptick in the buying intention. More consumers in the first quarter think that it's a good time to buy houses, cars and household appliances. Gunigundo attributed this to the local businesses' aggressive marketing of their products. Shopping malls offering discounts and interest-free installment packages are spurring consumer buying. The confidence index was computed based on a survey done by the central bank in January among 5,487 households. The central bank issues a consumer expectations survey every quarter. Social Front

• UK 'behind the Philippines on workplace equality' The UK is lagging behind the Philippines when it comes to appointing women to senior management roles, it has been revealed. According to the latest Grant Thornton International Business Report, female workers hold 47 per cent of top roles at private sector firms in the Philippines, the highest proportion of any country in the world.

By comparison, in the UK 21 per cent of such positions are held by women, below the global average of 24 per cent. Lily Linsangan, partner in the Grant Thornton International member firm in the Philippines, explained that the country now has a culture where equality in senior roles is seen as standard practice.

Recently, a study by leadership and development consultancy the Aziz Corporation suggested that a lack of female executives in the City of London led to a "macho" culture which was partly responsible for the recent crisis in the financial sector.

• Female Migrants From Asia At An Increased Risk Of HIV, U.N. Report Says Female migrants from Asia have become "highly vulnerable" to HIV during the global financial crisis, according to a United Nations Development Programme report released in Manila, the Philippines, on Tuesday, AFP/Nasdaq.com reports. According to the report, the economic crisis has resulted in widespread job cuts and the "situation of migrant workers is under threat." It added, "When demand for labor wanes, those in the weakest bargaining position, usually temporary migrant workers and particularly the undocumented, will accept almost any conditions to hold on to their jobs."

Between 70% and 80% of migrant workers from Sri Lanka and the Philippines to Arab states are women, and 60% of female migrants from Bangladesh were employed in the

289 region between 1991 and 2007, according to the report. It added that these women now face harsh conditions. Many are heavily indebted when they leave their home countries, and others experience sexual abuse by their employers or are kidnapped by human traffickers. "Conditions are expected to become harsher for even the employed migrant workers as they try to hang on to their jobs," UNDP country representative Renaud Meyer said, adding that undocumented workers are among the most vulnerable and might "accept almost any circumstances to hold on to their jobs." Meyer said, "Worst still, during the present turmoil, desperation for work may lead to migration under unsafe conditions, sexual exploitation and increased vulnerability to HIV infections"

Prasada Rao, regional director for UNAIDS, said that although "migration itself is not a risk factor to HIV infection, the conditions under which some workers migrate and their living conditions in the host countries make them highly vulnerable to HIV." Ajay Chhibber, UNDP regional director for Asia and the Pacific, said that migrants found to be HIV-positive often face deportation and that they are unable to find work and experience discrimination once they return to their home countries (AP/MSNBC.com, 3/10).

According to AFP/Nasdaq.com, although some countries require HIV/AIDS education for migrants prior to departure, many workers do not receive such education. For example, 96% of Bangladeshi domestic workers in the Middle East said that they did not receive HIV/AIDS orientation before departure. "While half of them have heard of HIV through the media or from co-workers, none had in-depth knowledge of HIV prevention" and safer-sex methods, the report said, adding that the combination of recruitment fees and low wages can force female migrants into "debt traps, which in turn, could lead to sexual exploitation." In addition, workers who "flee abusive working conditions are immediately rendered illegal by host countries, exposing them to greater risk of abuse, including sexual exploitation and increased vulnerability to HIV," the study said. It was based on more than 600 interviews with migrant workers from Bangladesh, Pakistan, the Philippines and Sri Lanka, which supply workers to countries such as Bahrain, Lebanon and the United Arab Emirates

• Philippines closely monitoring immigration case in Japan(Strategic,Social) The government said Thursday it was closely monitoring a contro-versial immigration row in Japan involving a Filipino couple and their daughter.

The couple face deportation because they entered Japan on fake passports 17 years ago. They are appealing their case so that their 13-year-old daughter, who was born in Japan and only speaks Japanese, can finish school. The Japanese government has said the girl may stay in Japan alone but told her parents to leave. When a deadline passed on Monday, authorities detained her father, Arlan Cruz Calderon, 36.

290 The 38-year-old mother was not detained but warned that the entire family would be deported next week unless the parents go voluntarily, with or without their daughter, the family’s lawyer said earlier this week. More than 20,000 people in Japan have signed a petition asking the government to allow all three to stay. The case has attracted the attention of Amnesty International as well as the UN Human Rights Council, which has asked for information about the case.

The embassy, he said, was prepared to “extend humanitarian assistance” to the family, including help with reintegration to the Philippines if they are sent home Environmental Front • Thailand Political Front

• Thai premier faces impeachment complaint Thailand’s leading opposition party the Puea Thai Party filed on Wednesday morning an impeachment motion against Prime Minister Abhisit Vejjajiva to Senate President Prasobsook Boondech, for a debate in the House.

The impeachment motion was handed to the Senate president by Puea Thai MP (member of the parliament) Peerapan Palusuk, who was accompanied by over 20 Puea Thai MPs.

The opposition parties’ impeachment charges against premier Abhisit include corruption and constitutional violations, accusing him of abusing his power and siding with protesters who gate crashed Bangkok’s airports.

The impeachment motion has alleged Abhisit of abusing his authority and had concealed allegedly unlawful donations given to his Democrat Party by listed companies in the stock market. Further, the complaint stated that Abhisit’s took office as prime minister has allegedly not been supported by a majority of the Thai people. It also claimed that Abhisit is guilty of supporting political activities of the People’s Alliance for Democracy (PAD), which is one of Thailand’s active political groups.

Late last year, the PAD-led rallies led to the closure of Suvarnabhumi and Don Mueang airports in the climax of the protests to topple the previous two governments, which caused great loss to the country’s tourism industry and international image.

Prior to the current Abhisit-led government, the two previous governments were led by Samak Sundaravej and then Somchai Wongsawat as the PAD group accused them as the proxies of ousted premier , the PAD’s declared enemy.

291 The impeachment motion is part of a no-confidence-debate plan against the premier as the country’s Constitution has required opposition parties to seek the impeachment against the premier, while it decides to hold the censure motion against the premier.

After Wednesday’s filing of the impeachment motion against the premier, on Thursday the Puea Thai Party will also submit a no-confidence motion against the Cabinet’s ministers to House Speaker Chai Chidchob, according to Puea Thai Party spokesman Prompong Nopparit.

• Thai PM confident of answering all impeachment charges Thai Prime Minister Abhisit Vejjajiva said on Wednesday afternoon he is confident he will be able to answer all of the impeachment charges filed against him by the opposition parties.

Earlier on Wednesday morning, Thailand's leading opposition party -- Puea Thai Party filed the impeachment motion against Prime Minister Abhisit to Senate President Prasobsook Boondech, for a debate in the House. Thailand's leading opposition party the Puea Thai MP Peerapan Palusuk (3rd L, front), accompanied by over 20 Puea Thai MPs, hands an impeachment motion to the Senate President Prasobsook Boondech (4th L, front) in Bangkok, Thailand, March 11, 2009. The Puea Thai Party filed an impeachment motion against Prime Minister Abhisit Vejjajiva to Senate President Prasobsook Boondech for a debate in the House on Wednesday morning

The Premier expresses his confidence even though he said he has not yet seen the impeachment charges against him submitted to the Senate President, INN news agency reported.

Thailand's leading opposition party the Puea Thai MP Peerapan Palusuk (L), accompanied by over 20 Puea Thai MPs, hands an impeachment motion to the Senate President Prasobsook Boondech (R) in Bangkok, Thailand, March 11, 2009. The Puea Thai Party filed an impeachment motion against Prime Minister Abhisit Vejjajiva to Senate President Prasobsook Boondech for a debate in the House on Wednesday morning. The impeachment motion was handed to the Senate President by Puea Thai MP Peerapan Palusuk, who was accompanied by over 20 Puea Thai MPs.

The leading opposition Puea Thai Party has asked the Senate to impeach Premier Abhisit on charges of corruption and constitutional violations.

• Thai PM, ministers face no-confidence motion Thailand's opposition on Thursday filed a censure motion against Prime Minister Abhisit Vejjajiva and five government ministers, accusing them of corruption.

292 The move by the Puea Thai party, which is allied to fugitive former premier Thaksin Shinawatra, is the second step in their bid to topple the government, following the launch of impeachment proceedings on Wednesday.

British-born Abhisit, the leader of the ruling Democrat Party is accused of incompetence and mismanagement, alongside Finance Minister Korn Chatikavanij, his deputy Pradit Patharaprasit and Foreign Minister Kasit Piromya.

Interior Minister Chavarat Charnveerakul and his deputy Boonchong Wongtrairat are also cited in the no-confidence motion.The measure is the latest twist in a bitter political dogfight that has divided the kingdom since Thaksin was toppled in a 2006 coup.

Wednesday's impeachment proceedings, a necessary precursor to the censure debate, accused Abhisit of offering "moral support" to royalist protesters who launched a week- long occupation of Bangkok's two airports last year.The blockade left hundreds of thousands of visitors stranded, severely dented the kingdom's tourist-friendly image and cost the economy billions of dollars.

The siege ended in December after the constitutional court disbanded the Thaksin- supporting People Power Party -- the predecessor to Puea Thai -- which had governed since winning the post-coup elections a year earlier.Abhisit was named prime minister in a parliamentary vote on December 15, angering Thaksin supporters who have since held a series of protests calling for snap elections.

• ASEAN to be held at luxury beach resort THAILAND has again switched the venue of a long-delayed meeting of Southeast Asian leaders and key regional counterparts, saying it would now be held in the beach resort of Pattaya.

The change comes just a week after the southern tourist isle of Phuket was named to host the April 10-12 summit of Association of Southeast Asian Nations leaders plus China, South Korea, Japan, Australia, New Zealand and India.

The conference was originally due to take place in Bangkok in December, but was postponed after anti-Government protesters besieged the capital's airports and has since been repeatedly rescheduled.

Another regional summit was held outside Bangkok last month due to fears of fresh demonstrations against the current government, led by Prime Minister Abhisit Vejjajiva.

Courier Mail, 3 Dec 2008 Abhisit came to power in December after months of protests against the previous government loyal to ousted former premier Thaksin Shinawatra, which peaked with the blockade of Bangkok's airports late last year. The airport siege and other political unrest cost Thailand billions of dollars in economic damage and also

293 harmed its status as a tourist destination. Pattaya, less than 150 kilometres (93 miles) south of Bangkok, is one of Thailand's most popular seaside resorts but has only just begun to cultivate a more family-friendly image after years as a magnet for sex tourists.

The town is also known as the venue for the annual Miss Queen International contest, a pageant to find the world's most beautiful transsexual -- although that too was postponed last year due to the political unrest. Strategic Front

Economic Front

• Thai economy comes under further downward pressure from the global recession, As the Thai economy comes under further downward pressure from the global recession, reports warn that the hardest hit from the downturn are the rural and urban poor. Thai Prime Minister Abhisit Vejjajiva, has pressed his Cabinet members to go to the provinces to hear views from local people as the government prepares new measures to boost the economy.

Thai government reports say the Thai economy faces its toughest year since the Asian financial crisis of a decade ago.A university study predicts the Thai economy will contract over the first and second quarters of 2009 by up to five percent.This stands in contrast to the earlier predicted forecast of up to four percent growth. Now there are warnings of unemployment reaching over one million people. Thai economists, in a paper to the United Nations this week, said the crisis would hit the "grassroots," low income populations, the hardest.

The economists, from the Thailand Development Research Institute, a private sector funded think tank, said up to 30 percent of the population of 63 million is either poor or vulnerable to economic shocks, with most living in provincial regions.

Thai Prime Minister Abhisit Vejjajiva this week called on cabinet members to visit all 76 provincial regions to gain 'feedback' as part of the government's economic strategy.

Traveling to the central province of Lopburi, 150 kilometers from Bangkok Saturday, Mr. Abhisit held informal talks and meeting with local community representatives.

Panitan Wattanayagorn, the government spokesman, said the policy was part of a more flexible strategy in the face of the economic recession.

The Thai government has already set out an economic stimulus package to underpin the sliding economy, with plans for two further packages in the wings in the months ahead.The government has already announced a package of over $3 billion to flow into

294 the economy in the coming months. Panitan said further spending by the government may be necessary.Economists are also warning that, in the absence of an effective social safety net, more people could be thrust into poverty in the months ahead.

But economists and business executives are hoping the Thai economy will show signs of recovery by the last quarter of 2009 as the economic stimulus packages elsewhere in the world start to impact the domestic economies.

• Economic crisis causes thousands of Burmese migrants to lose jobs (Social) The number of Burmese migrant workers in Thailand and Malaysia that are losing their jobs as a result of the global economic crisis is soaring, according to a Bangkok-based migrant workers group.

Thousands of migrant workers have lost their jobs in the last year and some factories have had to be closed down, said Kyaw Thaung of Burmese Association in Thailand.

A worker at a factory in Bangkok said that 25 workers were made jobless last weeAbout 60 Burmese workers were fired from a knitting factory on the pretext of lacking in skills.

Many of these workers are not going back to Burma, hoping that they will get a new job where they are, Thant Zaw Oo said.Malaysia has also seen cuts in employee numbers, and the Malaysian government is allowing some migrant workers to return to their countries without being prosecuted for not having legal status.

But many workers say that they will not return to Burma and will stay on by any means possible, an official in charge of workers from National League for Democracy - Liberated Areas (Malaysia branch) said.

Burmese PM General Thein Sein said that there are jobs at the ready for workers returning to Burma.Maung Maung, who is going back to Burma in the coming week, doubts however that there will be a job for him in Burma. Social Front

• Thai minister meets UN on refugees Thailand's foreign minister Kasit Piromya met the United Nations' refugee chief Saturday to discuss the plight of migrants from Myanmar washing up on its shores. The United Nations' refugee agency (UNHCR) has expressed concern over the fate of hundreds of Rohingya migrants who were rescued in Indian and Indonesian waters in recent months claiming to have been abused by Thai authorities.

But Kasit said he had reassured the High Commissioner for Refugees, Antonio Guterres, that Thailand would tackle the matter with its neighbours.

295 At the recent summit of the Association of Southeast Asian Nations in Thailand's coastal Hua Hin, members agreed to discuss a common approach to illegal immigration in a ministerial meeting to be held April 14-15. The talks will take place under the " Bali process" -- first convened in 2002 to tackle the influx of illegal migrants into the region from Iraq, Iran and Afghanistan.

Australia and Indonesia will co-chair the talks, to be attended by Thailand, Malaysia, Myanmar, Bangladesh, India and UNHCR, Kasit said. Photographs apparently showing the Thai army towing migrants in boats out to sea and lining Rohingya men up on a beach have been published in the international media this year. Rohingya rescued at sea said they had fled Myanmar for Thailand but were rounded up and taken out to open waters with limited supplies. Thailand has denied the accusations, while insisting the problem of illegal migration to its shores must be dealt with regionally. Guterres is now travelling to Myanmar, Kasit said, to ask for cooperation on the Rohingya Muslim minority, who say they are persecuted by authorities there.

• Thai FM meets UN on Rohingya refugeesMarch 7, 2009 Thailand's foreign minister Kasit Piromya met the United Nations' refugee chief to discuss the plight of migrants from Burma washing up on its shores.

The United Nations' refugee agency (UNHCR) has expressed concern over the fate of hundreds of Rohingya migrants who were rescued in Indian and Indonesian waters in recent months claiming to have been abused by Thai authorities.But Kasit said he had reassured the High Commissioner for Refugees, Antonio Guterres, that Thailand would tackle the matter with its neighbours.

At the recent summit of the Association of Southeast Asian Nations in Thailand's coastal Hua Hin, members agreed to discuss a common approach to illegal immigration in a ministerial meeting to be held April 14-15.The talks will take place under the "Bali process" - first convened in 2002 to tackle the influx of illegal migrants into the region from Iraq, Iran and Afghanistan.Australia and Indonesia will co-chair the talks, to be attended by Thailand, Malaysia, Myanmar, Bangladesh, India and UNHCR, Kasit said.

Photographs apparently showing the Thai army towing migrants in boats out to sea and lining Rohingya men up on a beach have been published in the international media this year.Rohingya rescued at sea said they had fled Myanmar for Thailand but were rounded up and taken out to open waters with limited supplies.Thailand has denied the accusations, while insisting the problem of illegal migration to its shores must be dealt with regionally.Kasit said Guterres was now travelling to Myanmar to ask for cooperation on the Rohingya Muslim minority, who say they are persecuted by authorities there.

• Thailand: Resolve ‘Disappearance’ Case

296 The new government of Thailand should ensure that those responsible for the enforced disappearance and presumed murder of prominent Muslim human rights lawyer, Somchai Neelappaijit, are finally brought to justice, Human Rights Watch said today, five years after his abduction.

On March 12, 2004, Somchai was assaulted and pulled from his car in Bangkok, allegedly by five police officers. He was never seen again. Somchai was chairman of Thailand's Muslim Lawyers Association and vice-chairman of the Human Rights Committee of the Lawyers Council of Thailand. At the time, he was investigating and reporting on widespread police torture of Muslims in the insurgency-ridden southern border provinces.

In a much-publicized attempt to demonstrate his commitment to human rights and the rule of law, Prime Minister Abhisit Vejjajiva on January 21, 2009, ordered the and the Justice Ministry to accelerate their investigation into the case.

Four Thai prime ministers in the past five years - Thaksin Shinawatra, Gen. Surayud Chulanont, Samak Sundaravej, and Somchai Wongsawat - have acknowledged that police and government officials were involved in Somchai's abduction and killing. But none of them brought the perpetrators to justice. Key questions remain unanswered, including who ordered the abduction and presumed killing of Somchai and who was involved in obstructing justice. Five police officers - Police Maj. Ngern Tongsuk, Police Lt. Col. Sinchai Nimbunkampong, Police Lance Cpl. Chaiweng Paduang, Police Sgt. Rundorn Sithiket, and Police Lt. Col. Chadchai Leiamsa-ngoun - were arrested in April 2004 in connection with Somchai's case and charged with coercion and robbery. None were charged with the more serious crimes of abduction or other offenses connected to the enforced disappearance.

On January 12, 2006, the Central Criminal Court found Police Maj. Ngern guilty of physically assaulting Somchai, and sentenced him to three years in prison. The other four police officers were acquitted.

The assistant national chief, Police Lt. Gen. Aswin Kwanmuang, who was hand-picked by Prime Minister Abhisit to supervise the investigation, was quoted in media reports on January 27 as saying: "Police involvement in this case has obstructed the investigation. With strong backing from the new government, the sky is now clearing up and progress can be made. First, we must find Somchai's body. After that, arrest warrants on additional suspects will be issued. No one will be spared, including senior police officers."

While efforts to investigate and prosecute the case have been extremely weak, Somchai's case is the only enforced disappearance that has led to any prosecution or has received significant attention from Thai authorities. In a March 2007 report, "It Was Like Suddenly My Son No Longer Existed," Human Rights Watch documented a pattern of

297 enforced disappearances and other abuses by the security forces. Successive governments have done nothing to hold abusive officers accountable for serious crimes.

Human Rights Watch called upon the Thai government to nullify the 2005 Emergency Decree on Government Administration in Emergency Situations (Emergency Decree) and repeal the 1914 Martial Law Act in order to protect the basic rights of all Thais and bring Thai law into conformity with international standards.

Human Rights Watch said that the Thai government has enforced laws and regulations in a way that increased the vulnerability of suspects in the southern border provinces, leaving them vulnerable to torture, "disappearance," and extrajudicial killing during pre- charge detention.

The Martial Law Act allows seven days of pre-charge detention. After that, suspects can be detained for another 30 days under the Emergency Decree, which was issued by the government of Thaksin Shinawatra. Suspects are also prohibited from having access to family and lawyer visits during the first 72 hours of their detention.

Resentment against human rights abuses by Thai authorities is among the factors fueling an increasingly brutal insurgency in southern Thailand in which separatist militants have carried out a string of deadly attacks on civilians and security forces - shooting, bombing, beheading, and arson attacks - over the past five years.

A policy statement Prime Minister Abhisit delivered to Parliament on December 30 stressed that justice will be integral to resolution of the conflict in the southern border provinces, which has claimed more than 3,500 lives since January 2004.

Human Rights Watch urged Prime Minister Abhisit to take all necessary steps to stop the practice of enforced disappearances, including making enforced disappearance a specific criminal offense and ratifying the International Convention for the Protection of All Persons from Enforced Disappearance. In addition, Thai authorities should ensure that all persons detained by law enforcement and security forces are held at recognized places of detention, and are not subjected to torture or cruel, inhuman, or degrading treatment. Authorities should immediately make the whereabouts of detainees known to family and lawyers. Environmental Front • Singapore

298 Political Front Strategic Front

• Singapore, Indonesia to sign maritime boundary agreement Singapore's Foreign Affairs Minister George Yeo will visit Jakarta on Tuesday.

There, he will sign the maritime boundary agreement between Singapore and Indonesia. The boundary delimits the western part of the Strait of Singapore. The maritime boundary treaty came to fruition after nearly four years of negotiations which started in February 2005.

During his visit, Mr Yeo will also officiate at the opening of the new Chancery of the Singapore Embassy in Jakarta. According to a statement from the Foreign Affairs Ministry, Mr Yeo will also meet prominent Indonesian academics and media personalities during his visit.

Economic Front

• Singapore shares near six-year low Singapore shares closed 3.71 per cent down on Monday, hitting their lowest level in nearly six years on persistent worries over the economic outlook, analysts said.

The blue-chip Straits Times Index fell 56.17 points to 1,456.95 on a volume of 830.31 million shares worth S$667 million. Losers led gainers 318 to 118, with 785 issues unchanged.

The index closed at its lowest point since July 2003. United Overseas Bank fell 62 cents to S$8.20, DBS shed 45 cents to S$6.45 and Oversea-Chinese Banking Corp closed 19 cents down at S$3.95. Among property stocks, City Developments dropped 19 cents to S$4.07, CapitaLand eased seven cents to S$1.79 and Keppel Land was down five cents to S$1.14. Singapore Telecommunications dipped 10 cents to S$2.44 and Singapore Airlines shed 10 cents to S$9.80. Motor vehicle firm Jardine Cycle and Carriage fell 47 cents to S$8.53 and oil rig-maker Keppel Corp eased eight cents to S$4.08.

• 26% increase in Singapore's dengue cases in first 9 weeks of 2009 Singapore had seen a 26 per cent jump in dengue cases in the first nine weeks of this year, compared to the same period in 2008. And authorities are taking a more concerted approach in the fight against the mosquito-borne disease, which can be fatal in its severest form. According to the National Environment Agency (NEA), there were 1205 cases of dengue in Singapore since the beginning of the year, an increase of 253 cases on- year.

299 This is a 26 per cent increase, compared to the 952 cases registered in the same period last year. The rising trend of dengue was also being seen across the Asia Pacific region.

The World Health Organization (WHO) said the Aedes mosquito, which transmits dengue fever, was spreading to areas that were once unaffected. Coordinator, Communicable Diseases Control, WHO Southeast Asia Region, Chusak Prasittisuk, said:

Recognising that dengue poses a serious public health threat, Singapore's NEA and the Foreign Affairs Ministry worked together to co-host the first Asia Pacific dengue workshop with the WHO..

Director, Programme on Emerging Infectious Diseases, Duke-NUS Graduate Medical School, Dr Gubler, said: "The principal drivers of the re-emergence or emergence of epidemic dengue and dengue hemorrhagic fever are a combination of uncontrolled urbanisation and movement of viruses and vectors not necessarily in this region, but around the world by people in airplanes." The workshop attracted 42 participants from the Western Pacific and Southeast Asia

• Singapore must be ready for post-crisis order Singapore must be ready when the economic slump ends and when the post-crisis order takes over. And to remain competitive, Education Minister Dr Ng Eng Hen said, the country must be known as an Intellectual and Information City, a Talent City and Global Node, a Future Model City and a Connectivity City.

Dr Ng was speaking at the second ministerial forum at the Singapore Management University (SMU). Due to the financial crisis, Dr Ng said Singapore must re-evaluate its strategic priorities and if need be, re-order them to maintain its strength.

The minister added that the basic fundamentals that give Singapore the edge must be focused on as well. He said Singapore must be known as a place for new discoveries and an environment that is suitable for talent. But Dr Ng warned that if the recession is prolonged, it will be a litmus test for the current generation.

He also addressed concerns about job prospects, especially for undergraduates studying financial-related courses. Asked about the brain drain problem, the minister said Singapore must constantly develop opportunities to retain talent.

The minister added that over the next decade, Singapore's education system will have to evolve, as students become more articulate and become part of a generation that is more questioning.

• President Nathan takes final step to allow govt to draw on reserves(pol) President Nathan has taken the final step to allow the government to draw on Singapore's reserves as announced in this year's Budget Statement. He has written to the Speaker of

300 Parliament, Abdullah Tarmugi, saying the Council of Presidential Advisors had approved the draw on past reserves to fund the Jobs Credit Scheme and the Special Risk-sharing initiative. The risk-sharing initiative will see the government undertake up to 80 per cent of bank loan risks. President Nathan is approving the draw of up to S$4.9 billion on past reserves. It is the first time Singapore is dipping into the reserves

• MM Lee urges new citizens to pull together with Singaporeans Singapore's Minister Mentor Lee Kuan Yew said new citizens must pull together with Singaporeans to adjust to changes in the world economy. He was speaking at the Tanjong Pagar GRC Citizenship ceremony where 250 citizenship certificates were presented Saturday evening.

With the economic downturn, some developed countries are restricting immigration. But not Singapore, which accepted 20,513 new citizens last year, up from 17,334 in 2007. Mr Lee said: "Singapore treats all our citizens equally, (both) Singapore-born and new citizens. What each of you earn or make in business depends upon your effort." Mr Lee also urged the new citizens to get involved in civil organisations such as Residents' Committees, and Voluntary Welfare Organisations. He said: "That we have done well in the last 40, 50 years does not guarantee that we will continue to do so. We must pull together. To play a full part, you must embrace Singapore’s society. It is a two-way process. Make the effort to meet Singaporeans more than halfway. Singaporeans will respond positively." The government had previously estimated that with the current low total fertility rate and without new immigrants, Singapore's population would be halved by around 2070.

To help new citizens integrate into Singapore’s society and bridge the local-foreign divide, a National Integration Council would be set up this year.

It would have four sub-committees focusing on the community, school, media and workplace, and each is supposed to devise ways to help foreigners settle in and mingle with Singaporeans.

• S'pore family businesses have strong values to ride out economic crisis Singapore family businesses have leadership values and characteristics which are likely to put them in good stead to ride out the economic slump. This comment came in a report entitled "Family Business: In Safe Hands?", published by Barclays Wealth and the Economist Intelligence Unit. The study is based on a global survey, involving countries like China and the United States.

The findings showed that Singapore's family business owners placed a strong emphasis on family relationships. As a result, they were less motivated by money. This was also evident among other Asian survey respondents. Just 30 per cent of family business members from Asia said an important motivation was the enjoyment of making money,

301 compared with 43 per cent from Europe and 48 per cent from North America. Asian family business owners were also most likely to cite the ability to help others through philanthropic activities as one of the key motivations to making money. This could be due to the strong family structures that characterise many Asian societies.

According to the survey, Singapore family businesses also received strong support from other family members. That is seen as the biggest advantage of the family business model. But about half of the Singapore respondents felt that the top disadvantage for running a family business was the potential for conflict among family members. As for the most important characteristic for building a successful family business, about 48 per cent of the Singapore owners cited the need for clear succession plans as their topmost priority. Chief executive of Barclays Wealth Asia Pacific, Didier von Daeniken, said: "Family firms play an essential role in Asia, including Singapore. Social Front Environmental Front • Vietnam Political Front Strategic Front

Economic Front

• Vietnam keen to strengthen trade relations HH the Emir Sheikh Hamad bin Khalifa al-Thani receiving Vietnam’s Prime Minister Nguyen Tan Dung at Doha Sheraton hotel yesterday. Bilateral relations and means of bolstering them as well as a number of issues of mutual concern were discussed during the meeting Vietnamese Prime Minister Nguyen Tan Dung resumed his meetings with a number of Qatari officials as part of his current visit to Qatar.

The Vietnamese premier met at the Four Seasons hotel with the Chief Executive Officer of Qatar Airways, Akbar al-Baker and Ali Sherif al-Emadi, the executive officer of Qatar National Bank (QNB). In remarks to QNA, al-Baker said the meeting featured the close relations between Qatar Airways and Vietnam Airlines and ways to further strengthen them.

Talks during the meeting also dealt with ways to augment Vietnam Airlines’ new fleet via exchange of resources between Qatar Airways and Vietnam Airlines.

302 Akbar al-Baker added that the two sides discussed prospects of Qatar Airways investing in Vietnamese airport infrastructure. He affirmed that Qatar Airways is seeking to realise such a co-operation. In similar remarks to QNA, Vietnam’s Deputy Minister of Foreign Affairs Doan Xuan Hung praised the close economic relations between the two countries and noted that the trade volume between the two sides had reached $40mn in 2007 and exceeded $80mn in 2008. It is expected to grow further in future, he said.

Doan Xuan Hung, meanwhile, called upon the Qatari businessmen to invest in Vietnamese enterprises, including the oil and gas sector.

He said the Vietnamese delegation had received a promise from the Qatari businessmen to visit Vietnam with a view to enhancing ties of joint co-operation.

• Sri Lanka can be bridge to trade with South Asia -Vietnamese PM Vietnam Prime Minister Nguyen Tan Dung said he hoped Sri Lanka would serve as a bridge for Vietnam's economic, trade and investment cooperation with South Asian countries. Receiving Sri Lankan Foreign Minister Rohitha Bogollagama in Hanoi the Vietnam Prime Minister said, "Vietnam supported Sri Lanka's efforts to stabilise national security and social order and fight terrorism in the name of national construction and development."

Trade circles hope that the trade and investments between Sri Lanka and Vietnam would open the huge Indian and Pakistani markets to the Vietnamese products due to the very liberal trade agreements Sri Lanka has established with the two South Asian giants, India and Pakistan. The Vietnam Prime Minister further said, Vietnam and Sri Lanka should intensify co-operation to reap more practical benefits for both sides.

PM Dung said he was pleased to see good development in the two countries' rapport and said he hoped the visit would help boost bilateral co-operation. Citing recent growth between the two countries the PM added that both bilateral trade and co-operation in other fields had grown in recent years, but the potential of the two countries had not been fully tapped.

Bilateral trade topped US$61 million in 2008, marking a 4 per cent year-on-year increase. The Vietnamese leader said he appreciated Sri Lanka's socio-economic development achievements, particularly its high economic growth rates over the recent years, which helped raise the country's per capita income to the highest level in South Asia.

Vietnam supported Sri Lanka's efforts to stabilise national security and social order and fight terrorism in the name of national construction and development, the PM said.

303 He added that he hoped Sri Lanka would serve as a bridge for Vietnam's economic, trade and investment co-operation with South Asian countries.

FM Rohitha Bogollagama told the PM about the results of his talks with Deputy PM and FM Pham Gia Khiem, during which they agreed to boost relations in trade and investment to match the two countries' potential, and expand co-operation to other fields such as agriculture, education, culture, sports and tourism for the mutual benefit of both countries.

They also agreed to further co-operation between the two countries at international and regional fora, including the ASEAN Regional Forum (ARF) and the United Nations.

• Vietnam, Singapore cooperate on e-government strategy A seminar focusing on Vietnamese and Singaporean cooperation in the application of e- government technology was held in Hanoi on March 10. An official from the International Enterprise Singapore said that his country had launched six IT development programmes and strategies over the last 25 years, and that Singapore had implemented three general plans to develop its e-government system.

According to a representative of the Vietnam IT Application Department, the Vietnamese government was currently launching several programmes and projects to develop the country's e-government capacity, such as digitising all of the governments management tasks and activities by 2010, and establishing an integrated information system to study national databases, as well as launching a series of web-based public services by 2015.

• Vietnam: a casualty of the crisis Mar 13, 2009 Vietnam's stockmarket was Asia's worst performer last year, sliding by 69% in dollar terms. This year it has fallen further and is set to keep struggling because "Vietnam's fundamentals are worsening", says Andrej Hrovat of the RH&P Global Value fund. GDP expanded by 6.8% last year – that sounds a lot, but was the slowest pace in a decade – and growth of just 5% is expected this year.

The sharp drop in global demand has hit the export-driven economy. Electronics goods exports fell by an annual 13.7% in the first two months of 2009, says The Economist.

Half a million workers lost their jobs last year, and 400,000 jobs are likely to go this year – "daunting numbers" in a country that needs to add one million jobs a year just to absorb its burgeoning workforce. Car sales have fallen by 68% since last year as the middle classes have stopped spending. The government, which is already running a budget deficit, plans to boost spending by $6bn, or 6% of GDP. That means it will have to tap global markets, says Lex in the FT.

That won't come cheap: Vietnam is now "another bedraggled casualty" of the global crisis rather than a "hot emerging market".

304 • Seminar fosters Vietnam-EU economic cooperation A seminar on Vietnam-European Union trade and economic relations was held in Hanoi on Mar. 11 to help domestic and European companies to find business partners and create long-term cooperative ties.

The seminar is part of a Mar. 10-13 visit to Vietnam by a delegation of businesspeople representing 60 companies from Belgium, Denmark, Greece and Spain.

During the course of the event, jointly organised by the Ministry of Industry and Trade and the Vietnam Chamber of Commerce and Industry, delegates discussed a wide range of issues, including commercial policies and business opportunities in Vietnam, transport infrastructure development and planning, and Vietnam’s tax reforms, necessary to meet WTO requirements.

Speaking at the workshop, the Vietnamese Deputy Minister of Industry and Trade, Le Danh Vinh, said that political and economic ties between Vietnam and Belgium, as well as the EU, have been continually strengthened and expanded.Vinh said he hoped that, with the help of dynamic foreign businesses, Vietnam’s cooperative relations with Belgium and the EU, particularly in economy, trade, maritime shipping, tourism and culture, will develop rapidly in the years to come.

The Belgian Ambassador to Vietnam, Hubert Cooreman, said that Belgium-Vietnam cooperative ties have, over the past three decades, been consolidated in both scope and depth, laying a firm foundation for a sustainable partnership.To bolster bilateral cooperation, Vietnam should play to its internal strengths to take a step forwards whenever the world economy bounces back, Cooreman said.

Statistics released by the Ministry of Industry and Trade reveal that Vietnamese-Belgian trade exceeded 1.3 billion USD last year, of which more than 1 billion USD came from Vietnam’s exports.However, Belgian investment in Vietnam remains at a modest level, as the country had, by the end of 2008, poured just 77.6 million USD into 32 projects. Its investment has focused on heavy industry, food processing, agriculture-forestry, transport, services and construction.

• Vietnam Increases Import Tariff For Dairy Products, Dairy farmers in Vietnam are set to benefit from an increase to the import tariffs on various milk products, the country's Ministry of Finance (MoF) has revealed.

According to the MoF, the decision to raise the import tariffs on certain types of milk has been made to help the country's local milk producers - many of whom are struggling to remain competitive.

Under the new regime:

305 Fresh milk will have its import tariff raised from 7 to 20%;

A 10% increase on tariffs will be applied to uncondensed and sweet-free milk and cream, taking them from 5 to 15%; and Import tariffs for sweet-free raw materials will rise from 3 to 10%. Milk powder and finished canned milk will not see their import tariffs adjusted, however.

• Qatar, Vietnam in talks over $1bn fund Qatar and Vietnam, pictured, are in talks over setting up a $1bn fund.Qatar and Vietnam are in talks about setting up a $1bn fund to invest in sectors including agriculture and tourism, it was reported on Monday.

The proposal was announced as the Gulf state's Prime Minister and Foreign Minister Sheikh Hamad bin Jassem bin Jabor Al Thani and Vietnam’s Prime Minister Nguyen Tan Dung signed three agreements and two Memoranda of Understanding (MoUs).As well as the $1bn fund plan, agreements were reached on encouraging and protecting investment while MoUs between Qatar Diar Company and Vietnamese Foreign Investment Agency on fishing and agricultural cooperation were also signed, The Peninsula reported on Monday. Social Front

• Viet Catholics look to revive evangelization efforts (Subscribe to RSS Feed) The Archdiocese of Ho Chi Minh City (formerly Saigon) has held a series of seminars on evangelization in recent weeks, to address mounting concerns about the ineffectiveness of the Church's missionary efforts.

Although Catholicism is relatively widespread in Vietnam and the Church has a strong corps of devoted lay activists, in recent decades the growth of country's Catholic population has lagged significantly behind the overall population growth. The latest official statistical figures from the Church in Vietnam show that the Catholic population in 2007 was 6,087,700 among 85,154,900 people, or a rate at about 7.15% of national population,” said Father Anthony Nguyen Ngoc Son, a key speaker at the seminars. “This indicates a decline in number of registered Catholics comparing to 7.2 % in 1933 or 7.5% in 1939,” he warned. ??

It is even more alarming, conference speakers noted, that while the proportion of Catholic population in Vietnam has decreased over the last 50 years, other Christian denominations have enjoyed a surge in people joining their churches. In 1999, non- Catholic groups had 400,000 members. This number quadrupled to reach 1,500,000 in 2008 according to the latest report. ??“These figures are a clear indication of the ineffectiveness of the Church’s mission in Vietnam during the last 50 years,” Father Anthony Nguyen lamented.??

306 Seminar attendees raised a pressing concern about the alarming number of adult converts who do not keep up the practice of their faith after Baptism. Within the past 7 years, there have been approximately 35,000 adult conversions to Catholicism annually-- 80-90% of these coming into the Church at the time of marriage. Unfortunately, the number of these converts who remain active has dropped dramatically. This decline can be attributed at least in part to the complications many people have to face after converting to Catholicism-- such as losing privileges and promotions at certain jobs, or facing subtle discrimination from the atheist government.??

While various external factors can be cited to help explain the problems the Church has faced in her missionary efforts, seminar speakers said that an indifferent attitude toward the missionary duty among the faithful has been noticeable. Many lay people, the speakers said, assume that the clergy is solely responsible for evangelization. In addition, many Catholics have not been living their lives in ways that bear witness to Christ. Their personal and religious lives have not made any good impression on their non-Catholic neighbors and friends.??Furthermore, “the clergy has not assumed the much-needed responsibility for the mission ad gentes in the country,” said Father Anthony Nguyen. "Missionary efforts seem to be a personal, sporadic crusade for volunteering individuals and religious orders." he explained. Sister Marie Nguyen of Saigon added: “Dioceses and the Church in Vietnam as whole lack zeal, a comprehensive missionary strateg,y and investments of means and tools for evangelical mission, especially in the rural or remote areas.”

Government oppression of the Church-- which at times amounts to outright persecution-- exacerbates the problem. In many remote areas of the Central Highlands and in northern mountainous provinces, pastoral activities are hindered by governmental bureaucracy and harassment. In these areas, missionary activity has often been described as an “offense against national security,” and the local officials have made no effort to hide their hostility toward the Church's efforts.??

A persistent propaganda campaign against the Church at all levels of education makes young people confused about the real purpose of Catholic activity, and discourages them from showing their Catholic identity. “Faith is often limited to something within a personal sphere that many Catholic youth try to make it as invisible as possible," reports Sister Marie Nguyen, a sociologist. "They try to avoid religion-oriented debates, hence losing chances to bear witness to Gospel."

The seminar participants, having explored the obstacles that the Church now faces, next turned to practical questions about the evangelizing mission. In a country full of social, political, and economic bad news, speakers asked, how should Catholics bring the "Good News" to their neighbors? In the midst of a pervasive tendency toward despair, how can they convey the hope and optimism that spring from the Gospel? How can the image of

307 the Church as a family of God be built? How can Christian families become authentic domestic churches? What efforts will be necessary to bring the Gospel message into culture of Vietnam? Environmental Front

• Int'l organization helps Vietnam in biosphere protection Two international organizations from Australia and Germany have decided to provide 1.6 million euros (about 2 million U.S. dollars) to help Vietnam conserve a key biosphere spot in southern Kien Giang province, Vietnam News Agency reported on Wednesday. AusAID, the Australian government's overseas aid program, and Germany Technical Cooperation Organization (GTZ) will provide financial as well as technical assistance to the project, said the agency.

The Kien Giang biosphere reserve was officially recognized by the United Nations Educational, Scientific and Cultural Organization (UNESCO) in 2006. The reserve, covering 1.1 million hectares, includes the U Minh Thuong National Park, which is one of Vietnam's few remaining wetland forests. The project, running until 2011, aims to enrich local forest resource, increase local residents' income, and improve the management capacity of rangers in this area. • Laos Political Front

• Thai Princess calls on Lao President President Choummaly Sayasone of the Lao PDR received at Hor Kham, the Presidential Palace, on 6 March HRH Princess Maha Chakri Sirindhorn of the kingdom of Thailand.

Welcoming her, the Lao President hailed the visit by the Thai princess and considered it a contribution to the strengthening and expansion of the friendly ties of good neighbourliness between the two countries. President Choummaly Sayasone conveyed greetings and best wishes to His Majesty King Bhumibol Adulyadej of the kingdom of Thailand. President Choummaly Sayasone expressed thanks to Princess Maha Chakri Sirindhorn for attending an opening of 3.5km railway, which runs from the Vientiane- Nongkai Friendship Bridge to Vientiane’s Thanalaeng train station.

The Thai princess was in Laos for a two day official visit during which HRH Princess Maha Chakri Sirindhorn visited a number of places including Thailand’s TOA Paint Factory and the Lao National Library in Vientiane. The princess also attended a ground breaking ceremony for the Thakhek-Nakhon Pranom Bridge on Friday in Khammouane province.

308 • Laos-Vietnam National Assemblies establish close ties President of National Assembly, Thongsing Thammavong warmly welcomed a delegation of high ranking officials from Vietnam, led by Mrs Tong Thi Phong, Deputy President of National Assembly of Vietnam in Vientiane on 9 March.

Mr Thongsing said he highly valued the visit to Laos of the Deputy President of National Assembly of Vietnam, who is doing all she could to promote friendship and all around cooperation between Laos and Vietnam and in particular the two National Assemblies of the two countries.On the same day, the Vice President of National Assembly, Pany Yathotou, also received Mrs Tong Thi Phong and her delegation, at her office.

During the meeting, Mrs Pany, Vice-President of the Lao National Assembly informed the delegation about the state of the socio-economic development of Laos and then the two sides exchanged information on how their National Assemblies function.

Mrs Tong said she has a four-day field study programme to get to know more about the economy and culture of Vientiane Capital and Vientiane province. Strategic Front

• Vientiane to construct new road links Sayaboury The Public Works and Transport Service of Vientiane province signed an agreement with three constructed companies to pave asphalt roads and bridges in the province.

The road construction project was the World Bank’s loan amounting to over 4,255 million kip, which this road links Vientiane Capital, Vientiane province and Paklay district, Sayaboury province.

The signing ceremony took place in Vientiane province on 4 March. Signatories to document, Head of Public Works and Transport Service of Vientiane province, Mr. Thavone Phengsengsaya and representatives from three local constructed companies respectively Panyathitlath, Keophosy and Thavisok.

The Panyathitlath Road and Bridge Construction Company will construct a 45 km road stretches from Sanakham district to Kokkhaodor area costing 3 billion kip.

Keophosy Company is to build a 11 km road long from Ban Houay Ilert, Hinheub district to border of Nasaythong district, Vientiane Capital with worth of 772 million kip and Thavisok company to build a road No11 from Sengthong district, Vientiane Capital to Vientiane Capital and repair bridges along the road No.13 north worth 367 million kip.

Economic Front

• Hungarian Government gives Laos loan for agriculture

309 Hungarian government last week gave a loan of US$8.6 million to Lao government for agricultural development in Vientiane Capital and Luang Prabang province.

The signatories at the signing ceremony were the Minister of Planning and Investment, Dr. Sinlavong Khoutphaythoun and the Hungarian Government’s Commissioner for International Economic Affairs and State Secretary of the Ministry for National Development and Economy, Mr. Abel Garamhegyi.

Another two signatories of the Loan Facility Agreement were the Vice-Minister of Finance , Miss Viengthong Siphandone and ECO of Exim Bank , Hungary, Mr Bodnar Zoltan. Under the terms of the agreement the Hungarian government would provide an interest free loan for aquaculture, rearing of livestock and modernisation of small scale farms.The agricultural orientation of the Framework Agreement is not a coincidence: Lao-Hungarian cooperation in the field of agricultural development has a long history, dating back to several decades.

Present activities are based on a Memorandum of Agreement signed in 2005 by the two ministries of the two countries, Laos’ Ministry of Agriculture and Forestry and

Hungarian Ministry of Agriculture and Rural Development.

• ADB Water Project to Ease the Strain on Women in Lao PDR Women who spend up to two hours a day on the backbreaking task of water collection and storage will be key beneficiaries of a new water supply and sanitation project in the Lao People’s Democratic Republic.

According to the source from ADB Manila office, the Asian Development Bank (ADB) Board of Directors approved a $23 million grant from its Asian Development Fund for the Small Towns Water Supply and Sanitation Sector Project.

The project will provide piped water and sanitation services for about 137,000 residents in over 120 villages in Lao PDR. Cofinancing of US$5.3 million will be provided by the Government of Australia and $500,000 from the Gender and Development Cooperation Fund, which is administered by ADB with contributions from Norway, Canada and Denmark.

The project supports the Government’s push to expand access to safe piped water to 80% of the urban population by 2020. In 2006, piped water coverage in small towns was just 21%, with sanitation coverage at 69%. At present many people rely on shallow wells, ponds and streams for water, which is often contaminated, causing ill health, lost income, increased child mortality rates and school absenteeism.

Together with the health and income benefits for the poor, the project will also build capacity of water supply utilities and oversight agencies. In 2006, water supply utilities

310 posted losses estimated at over KN30 billion ($3.53 million) - more than the total amount spent by the government on health in the same period.The project will seek to help the utilities become self-sustaining corporate entities by setting tariffs that allow them to recover their overheads, and at the same time keep supplies affordable through a three- tier charging system that spreads the cost of piped water over the entire customer base.

“The move to improve water supply utilities’ business model will be accompanied by measures to increase the capacity of key oversight agencies, enabling them to plan, regulate and manage the water and sanitation sector more effectively,” said Anupma Jain, Social Sector Specialist in ADB’s Southeast Asia Department. The project also offers scholarships for women to train and work in water supply and environmental engineering.Other gender initiatives include setting a minimum target for female representatives in the project implementation unit and in village committees, who will help oversee the project.

Lao PDR is one of the world’s least developed countries but in recent years it has become increasingly connected to the Greater Mekong Subregion through cross border highways, interregional trade and increased tourism. Many of the project towns are in key transport corridors, and improving water and sanitation will boost their role as market and service centers for surrounding rural areas. In turn this will result in more economic opportunities, jobs and reduced poverty levels. The project will also give tourism a push by making towns more attractive to visitors.

• Laos confirms SEA Games events(Social) The SEA Games Federation (SGF) and the SEA Games host nation of Laos have confirmed that 25 sports, comprising 386 events, would be included in the 25th SEA Games, scheduled to take place in Vientiane, from Dec 9-18.

The Olympic Council of Malaysia’s (OCM) honorary secretary, Sieh Kok Chi, was quoted by Bernama news agency as saying that the final number was determined after Laos decided to drop soft tennis from the list at the SGF council meeting in November.

“The OCM was given to understand that the host nation would not consider any more appeal for the inclusion of additional sports or events, although a number of countries had come forward to request the inclusion of a range of events.

With the latest development, The 25th SEA Games in Laos will encompass athletics, archery, aquatics, badminton, billiards & snooker, boxing, cycling, football, golf, judo, karate, sepak takraw, shooting, table tennis, taekwondo, tennis, volleyball, wrestling, weightlifting, wushu, muay thai, petanque, silat, shuttlecock juggling and fin swimming.

The 25 sports in Laos, which is hosting the Games for the first time, pales in comparison to the 43 sports included at the 2007 Korat SEA Games in Thailand.

311 • Japan gives money to build a gymnasium to Laos(strategic,Socuial) Japanese Government gave almost US$100,000 to the construction of Multipurpose Gymnasium of the Physical Education Teacher Training School.

The Grant Contract signing ceremony of the Japanese cultural grant assistance project for the construction of Multipurpose Gymnasium of Physical Education Teacher Training School took place on 11 March, at Mai Thi Chit Guest House, Vientiane Capital, between Mr. Masaaki Miyashita, Ambassador of Japan to Lao PDR and Mr Intong Leusinsay, Director of School.

The government of Japan provides the Physical Education Teacher Training School with financial assistance amounting to US$ 88,495 to construct a new multipurpose gymnasium on the school premises. This school is the only physical education teacher training college in the country and has long been suffering from shortage of proper facilities and equipment, although increasing number of Lao people are interested in various kinds of sports, there is a general lack of human resources engaging in physical education and sport training in this country, the new multipurpose gymnasium will address this situation and produce as many high quality physical education teachers as possible in this country.At the signing ceremony Ambassador Miyashita state that physical education and sport promotion are vital for the country, people need to maintain good health so that can contribute to national development of this country.Mr. Lytou Bouapao, Vice Minister of Education, along with the senior official of the Ministry of Education, and the diplomats from the Embassy of Japan also attended the ceremony.

• Laos, Thailand to boost power and energy cooperation(Eco,St,) Laos and Thailand have agreed to continued cooperation in power and energy affairs, although some projects need revision, according to acting Thai Government Spokesman Panithan Wattanayakorn.

Thailand News Agency quoted the spokesman as saying that the policy regarding power and energy affairs was discussed between Thai Prime Minister Abhisit Vejjajiva and Lao Deputy Prime Minister Somsavat Lengsavad, with both parties shari ng the view that cooperation should continue, and expand.

Currently five projects are covered by agreements, he said, including the purchase and sale of electrical power from hydroelectric power stations at dams in Laos will be revised as some contracts are due to expire, and others will be unchanged.

The spokesman added that construction and labour costs, as well as the demand for power, had changed along with changing global economic conditions, making it necessary for the governments of both countries to review the terms and conditions of contracts thoroughly before the contracts are renewed.It is expected the terms of the

312 project revisions would be completed before the Lao prime minister officially visits Thailand in May, he said./. Social Front Environmental Front

• Champassak to be the host of ASEAN+3 environmental meeting The leading officials of Champassak province discussed on organizing ASEAN plus 3 environmental annual meeting in Champassak province at the end of this month.

The discussion was attended by Deputy Governor of Champassak province Mr Somsanith Bouttivong, the representatives of 10 districts and heads of concerned sectors around the province, held on 4 March, in Champassak province.

The participants have reviewed on preparing for the ASEAN+3 environmental meeting to offer services to delegation of ASEAN member countries relevant to health and security.

All 10 districts were appointed as organizing sub-committees that would be responsible for decorated conference, dissemination information on meeting, security safeguarding for tourism sites, cleaning campaign in city.

The participants also discussed on preparing the trade fair of agriculture and handicrafts production during the ASEAN+3 environmental meeting. • Cambodia Political Front

• PP election a two-cart race AMONG the four parties approved to compete in the upcoming May 17 council elections, just two parties - the ruling Cambodian People's Party and opposition Sam Rainsy Party - will compete for seats on Phnom Penh's municipal council, according to party ballot draws conducted by the Provincial Election Committee (PEC) Tuesday.

Funcinpec and the Norodom Ranariddh Party, which lack significant numbers of commune councillors in the capital, will be unable to participate in the municipal council poll, which is only open to Cambodia's 11,353 sitting commune councillors.

Tach Setha, the first of the SRP's eight candidates, said that although the municipal elections would be a foregone conclusion, he was optimistic the party's policies would encourage CPP councillors to cast their ballot for the opposition.

313 The ruling party confirmed it would run 45 candidates in the elections, although it had not yet finalised its candidate lists. But party representative Nuth Chea dismissed the idea that ruling party councillors would cast their vote for the opposition.

NRP spokesman Suth Dina said Wednesday that although his party held four of Phnom Penh's 664 commune council positions, the party's small representation in the capital meant it was not worth taking part in the elections.Puthea Hang, executive director of local election monitor Nicfec, said that even though the SRP had decent commune representation in Phnom Penh, the poll would reflect the numbers, which show the CPP holding 394 commune council seats to the opposition's 266. In Tuesday's ballot draw, the SRP was drawn to appear ahead of the CPP on municipal council ballots.

• SRP worried by councillor delays Party says discrimination slowing approval of commune officials, who have a vote in May pollCPP supporters during the July election. The SRP claims political discrimination is impeding voter registration for the May poll.

A SPOKESMAN for the opposition Sam Rainsy Party on Wednesday expressed concern that the party would not be able to fill all of its commune councillor positions in time for municipal, district and provincial council elections scheduled for May, citing a high number of current vacancies and a slow approval process.

The elections - which involve the Cambodian People's Party, the SRP, the Norodom Ranariddh Party and Funcinpec - will see 11,353 commune councillors vote to determine representation of their respective parties at the higher-level district councils and the municipal and provincial councils.

In order the fill a councillor seat, party officials must submit an application and wait for it to be approved by district and provincial officials, the Ministry of Interior, and finally the National Election Committee.

The NEC reported in February that it would accept applications up to March 10. Reached on Wednesday, however, NEC Secretary General Tep Nytha said the body was still accepting applications and would hold off on releasing a preliminary voter list until March 24. He said he knew of 50 applications that had yet to be approved by the Ministry of Interior. Yim Sovann said he had appealed to district and provincial officials to expedite the approval of applications by processing forms more quickly.

He said the SRP made a similar request in a letter sent last month to the Ministry of Interior and the NEC. Strategic Front

• Unesco official calls for more border talks

314 THE chairman of UNESCO's executive board expressed support Wednesday for further discussions between the Cambodian and Thai governments related to the dispute over Preah Vihear temple. In a move Thailand opposed, UNESCO listed the temple as a World Heritage site last July, triggering a troop buildup on both sides of the Thai- Cambodian border.

During a meeting at the Council of Ministers, Olabiyi Babalola Joseph Yai, who is visiting Cambodia for one week, commended Cambodian officials for their "patience" in ongoing border talks and encouraged them to continue to work towards a peaceful resolution to the dispute, which led to clashes that claimed four lives last October. Because of the temple's designation as a World Heritage site, he said, the talks concern not only Cambodians but people the world over.

Deputy Prime Minsiter Sok An said during the meeting that the Royal Cambodian Armed Forces would defend the temple and the border. He also said Cambodian officials would strive to keep negotiations productive and amicable and to strengthen ties with the Thai government. In addition to visiting Preah Vihear, the UNESCO official said he would visit Siem Reap and other provinces during his visit to the Kingdom, which ends on Tuesday next week. He said he was excited to visit many of the Kingdom's "wonderful" temples.

Economic Front

• Progress made on energy training: Govt CAMBODIA faces a significant challenge in finding qualified local engineers to work in the oil and gas industry, but has recently taken steps to ensure qualified personnel will be available, officials said.

Pen Ngoeun, an adviser to the Council of Ministers told the Post this week that US oil giant Chevron would need a minimum of 600 qualified Cambodian engineers for its offshore operation once production begins.

"They will need to have the highest technical skills - these are not manual workers but engineers," Pen Ngoeun said of the employees, adding that Deputy Prime Minister Sok An told a group of American business people Friday that some talented students were being sent abroad to train to meet the expected demand from oil companies.An official at the Ministry of Education, who asked not to be named, said that none of the country's universities offers oil and gas engineering studies. And he said fewer Cambodians were now graduating from Russian universities - which do offer such courses - than in the past two decades..

Chevron and the Finance Ministry are reportedly close to finalising agreement on the royalty share for offshore Block A in the Gulf of Thailand.

315 • 'Slow' development of island resorts to be completed by 2015: official Numerous island development projects have been stalled due to checks on environmental impact, but all will be finished within six years, says CDC

Royal Group CEO Kith Meng at the Hotel Cambodiana in Phnom Penh in August last year. Royal Group – one of the many companies to build on Cambodia’s islands – is developing a resort on Koh Rong. COMPANIES granted development licences for Cambodia's many islands will complete their resorts by 2015, an official said Tuesday.

Cham Prasidh, commerce minister and vice chairman of the Council for the Development of Cambodia (CDC), told the Post that once plans to minimise environmental impact are completed, the process will speed up.

He explained that each island development takes about two to three years to finish, but if each master plan does not comply with environmental standards, the government will not allow construction.

Yun Heng, director of the evaluation and incentives department of the Cambodia Investment Board (CIB), said on Wednesday that the government has granted 20 licences to companies to develop islands in Preah Sihanouk, Koh Kong and Kampot provinces, but so far only the master plans for three projects have been successfully completed.

He said that CDC has rejected the master plan for Koh Ses island off the coast of Kampot due to environmental concerns, asking them to redesign their plans. He added that island development would cost around US$2 billion for initial investment, most of which was coming from foreign companies.

Meas Morin, undersecretary of state at the Ministry of Environment in charge of island environmental impact evaluation, could not be reached for comment Wednesday. According to Yun Heng, CIB has inspected the investment capital of each development group. Developers of Cambodia's islands include Royal Group, which is building on Koh Rong, and Brocon Group of Australia, which plans to open resorts on Koh Oun and Koh Bong.

• Crisis threatens poverty reduction Efforts to halve poverty by 2015, one of Cambodia's nine Millennium Development Goals, could by stymied by low or negative economic growth and a lack of rural resources.

Last year marked the midway point for achieving the Millennium Development Goals, benchmarks for developing countries established in 2000 that cover everything from poverty to environmental sustainability. Last year also marked the five-year anniversary of the adoption of Cambodia's Millennium Development Goals, the localised versions of the global goals. In a four- part series, the Post looks at the progress made and the challenges that remain in achieving targets set for 2010 and 2015, drawing on government data as well as interviews with officials, NGO workers and Cambodians who stand to benefit from the effort. Part Four focuses on MDG No 1: Eradicate extreme poverty and hunger.

316 The poverty MDG

Combating poverty in the provinces is at the heart of Cambodia's effort to achieve Millennium Development Goal No 1: Eradicate extreme poverty and hunger.

On the strength of rapid economic growth, Cambodia reduced the proportion of people living below the national poverty line from an estimated 45 to 50 percent in 1994 to 34.7 percent in 2004, according to the Ministry of Planning's 2005 assessment of MDG progress. Though higher than the 2005 interim target of 31 percent, the Ministry of Planning termed the 2004 statistic "commendable". By 2007, the rate had fallen further, to 30 percent, according to that year's Cambodian Socio-Economic Survey (CSES).

In recent interviews, though, experts emphasised that poverty reduction largely has been limited to urban and accessible rural areas, excluding whole sections of the population and contributing to the nation's growing income inequality, which is high for the region.

Moreover, they said, the economic crisis casts serious doubt on whether poverty will fall fast enough for Cambodia to meet its 2015 MDG target of 19.5 percent, which some considered ambitious even when high growth seemed inevitable.

In 2006, for instance, the World Bank concluded that Cambodia would not meet the goal even with a 7 percent growth rate unless sectoral growth patterns changed.

Since then, growth projections have plummeted, with the International Monetary Fund predicting last week a 0.5 percent contraction in 2009 and warning that the actual contraction could be even more severe.

Rural poverty

Regardless of the economy, Conway said, poverty reduction efforts should target remote rural areas, where the poverty rate stood at 45.6 percent in 2005, according to the Ministry of Planning assessment.

Citing the high rural poverty rate as one of the chief shortfalls of the entire MDG effort, the ministry reported that more than 90 percent of the Kingdom's poor lived in rural areas. By 2007, according to the CSES, the concentration of the poor had been exacerbated. Conway called for rural poverty-reduction efforts that would increase the agricultural productivity of small landholders and reduce their vulnerability to the vagaries of the weather.

He also stressed the need for policies that would clarify land ownership and protect land titles held by the poor, echoing a point made by every expert interviewed for this article.

Chhith Sam Ath, executive director of the NGO Forum, said the rising number of economic land concessions in rural areas in recent years posed a grave threat to security of tenure.

An urban issue, too

317 A large part of Phnom Penh's appeal, notes the most recent Cambodia Human Development Report provided by the Ministry of Planning, stems from the fact that it has benefited from a high rate of public and private investment.

The report - which calls for "a substantial increase" in funding for rural irrigation, electricity and roads projects - argues that much of the Kingdom's recent growth "has been urban-based and narrowly focused on surging garment exports that may be vulnerable, record levels of tourism and a boom in the construction industry".

But to view the capital as strictly wealthy and the provinces as strictly impoverished, said Friends Executive Director Sebastien Marot, is to overlook the plight of the urban poor.

While the CSES found Phnom Penh's poverty rate to be less than one percent, Marot said poor city dwellers often face greater risks than their rural counterparts, citing the higher prevalence of drugs, HIV/Aids and violent crime in the capital.

Nevertheless, he said, "an increasing number of children" from the provinces, many inspired by mass media depictions of "wealthy families with beautiful homes and cars", have opted to move to the capital in recent years without fully thinking through how they would survive once they arrived.

The effect of the crisis

Looking ahead, Conway said the global economic slowdown posed the biggest challenge to meeting the poverty MDG. Continuing improvements to aid effectiveness - a component of MDG No 8: Develop a global partnership for development - could in part mitigate the effects of the slowdown on poverty reduction, he said, though he added that analysts were not yet able to project what those effects might be.

As analysts wait on the results of the 2008 national household survey, which Conway said would provide "a better picture" of recent trends, anecdotal evidence suggests a potentially grim outlook. Dennis Barbian, a business adviser for Friends, said international orders for the NGO's products were down. But he said he believed this was "not a real result" of the slowdown.

Marot said the effects of the crisis had not been severe enough to cause migrants to leave the city, even those who had been laid off.

Conway, however, found some cause for optimism, saying that the initial effects of the crisis could spur the government into adopting more effective policies designed to help the poor.

• SMEs seen as key to growth Members of the government and private sector urge development of small and medium-size businesses to drive economy towards recovery.

CAMBODIAN economists and trade officials have urged the government to focus on small and medium-sized entreprises rather than foreign investment to boost the economy during the global

318 downturn. He said that the size of the small business sector meant it was also able to absorb thousands of the 20,000 garment workers who have been laid off this year.

He said that SMEs mainly use domestic resources - raw materials and villagers who keep income circulating within the local economy.Mao Thora, a secretary of state at the Ministry of Commerce, said the government is working with the United Nations Development Program to promote small businesses by seeking markets for processing factories, and evaluate agricultural products.

He estimated that 90 percent of Cambodian businesses are SMEs, adding that the Ministry of Commerce had plans to send representatives to China in May to find buyers for cassava products and to seek out experts to train local producers on standard packaging.

Heng Heang, president of the Phnom Penh SME Association, told the Post on Wednesday that the global downturn was starting to affect small businesses, but not as severely as the real estate sector.

Nguon Meng Tech, director general of the Cambodia Chamber of Commerce (CCC), echoed the call to focus on SMEs, adding that such business owners are better paid than garment workers.

However, he blamed some officials at the Ministry of Commerce who usually discourage local entrepreneurs by asking them to pay a fee for opening businesses.

He also called on Cambodian tycoons to give US$2 million in loans to the CCC to lend to Cambodian entrepreneurs at a low interest rate.

Opposition lawmaker Son Chhay said between 600,000 and 700,000 Cambodians have left the country to seek jobs in Thailand and other countries, many of whom would usually have ended up opening SMEs in Cambodia had they not gone.

• Diversify economy, says PM Prime Minister Hun Sen called for economic diversification Thursday at the 2009 Outlook Conference at the Phnom Penh Hotel.

WITH some analysts expecting Cambodia's economy to contract for the first time in recent memory, Prime Minister Hun Sen urged the private sector Thursday to diversify beyond traditional export markets and announced more government help for crisis- stricken families.

He said the government would make more funding available to unemployed urban workers looking to relocate to the countryside. He also announced further support for small and medium-sized enterprises in rural areas.

Commerce Minister Cham Prasidh said he believed the crisis would soon come to an end, but he pressed the private sector to diversify and expand into sectors other than tourism and agriculture.

319 He said that the crisis had led to 5 percent drop in Cambodian exports and the loss of 51,000 jobs. He also said that the value of exports had dropped 50 percent since January 2009. But he added that some sectors, including tourism were still putting in strong performances.

But Tith Chantha, director general at the Ministry of Tourism, said he expects the tourism sector to decline further. According to ministry figures, 218,691 tourists visited Cambodia in January, down 2 percent compared with 2008.

The ministry is predicting that tourist arrivals will stay flat or decline as much as three percent, Tith Chantha said. He added that a 3 percent drop in tourist arrivals could cost Cambodia US$50 million and 10,000 jobs. Each job in the tourism sector, he said, supports three people living in the provinces. Last week the International Monetary Fund predicted that the economy would contract 0.5 percent this year. Social Front

• Tamil group not a threat in Cambodia LOCAL and American officials in Phnom Penh have downplayed the threat posed to Cambodia of a nonprofit group with ties to Sri Lanka's separatist Tamil Tigers that has offices around the globe.

Spokesman John Johnson said the US government had sent a generic message to all its embassies indicating that the US Treasury had designated the Tamil Foundation, a charity based in the US, as a terrorist group and frozen its assets. He downplayed the threat of the group operating in Cambodia.

Foreign Ministry Secretary of State Long Visalo had forwarded the US embassy notice, delivered on February 18, to the Ministry of Interior as a matter of protocol, said Koy Kuong, who is also a secretary of state at the ministry. Long Visalo could not be reached for comment Tuesday.

• Temple Watch: Wat's in a name For those curious about the meanings of the names of Angkor temples, here is a brief explanation for the most popular nomenclature: Angkor Wat literally means Temple City. The Thom in Angkor Thom means big. The meaning of Bayon is unclear, but a plausible translation is Leading Sacred Amulet. Prasat Bei near the south gate of Angkor Thom means Three Towers. Ta in Ta Prohm means grandfather or old man.

Prohm refers to the four-headed Hindu god Brahma. The original Sanskrit name Rajavihara means Royal Monastery. Preah Khan refers to the sacred sword used only by the king. The Sanskrit original name Nagara Jayashri means City of the Victor. Banteay in Banteay Srey means citadel. Srey originally meant wealth in Sanskrit, and the modern

320 translation of the Khmer term means women. Banteay Kdei means Citadel of the Cells, referring to the monks' cells in the temple close to Ta Prohm. The name of the brick temple of Pre Rup on the Grand Circuit translates as the turning of the body to ash. Pre Rup is considered to be a funeral temple dedicated to the Hindu god Shiva. The exact origin of Ta Som is unknown, but possibly means Old Man named Som.

• ASEAN failing on human rights The 10-member Association of Southeast Asian Nations wrapped up a two-day summit in Thailand under the theme "ASEAN Charter for ASEAN Peoples" on March 1. Topics under discussion included more effective community building, enhancing regional resilience against global threats and reinforcing ASEAN centrality in the evolving regional architecture.

This 14th summit was viewed as one of the most covered events by both regional and foreign media. The past 42 years of ASEAN's existence have been dominated by economy and security. Human rights issues were either ignored or evaded.

Five important issues contributed to the popularity of the gathering: It was the first summit after signing a landmark charter that made ASEAN a legal entity; it came amid a deepening global financial meltdown; it was delayed by dramatic political turmoil in the host country; it coincided with ongoing human rights violations in Burma [Myanmar] and the abuse of Rohingya refugees in Thailand; and it came amid renewed interest in the region by the United States. There has been considerable cooperation and progress on different fronts, excepting human rights. Too much emphasis on economy has overshadowed the brutality of a regime like the Burmese military junta.

Human rights issues represent one fundamental area where ASEAN has failed. The charter calls for greater participation by youths and civil society groups to make the bloc stronger, but the fact is that millions of people from these countries are still afraid to voice their opinions freely.

On February 27, foreign ministers applauded the introduction of the ASEAN Human Rights Body. The final document, which is to be released in July, is designed to promote and protect human rights. It is, however, not empowered to enforce stringent measures to the extent of punishing a member country.

There is a reason behind why a repressive regime like Burma's State Peace and Development Council welcomes such a human rights initiative. For any decision to be taken, it will have to be "based on consultation and consensus", which is similar to veto power in the UN Security Council.

On the opening day of the summit, ASEAN leadership was tested on the very issue they applauded. Two democracy activists from Burma and Cambodia, who were selected to

321 represent their own countries, were barred from attending the meeting when leaders of the two countries threatened to walk out. This is an example of how ASEAN has acted in the past. Whether it will continue to choose appeasement over human rights remains an open question.

In his summit-opening speech, Thai Prime Minister Abhisit Vejjajiva said: "ASEAN will put people first - in its vision, in its policies and in its action plans." This statement has to involve a concerted approach by all ASEAN members. The establishment of the Human Rights Body should be the beginning of an end to rights abuses and a new era of freedom in line with the universal declaration of human rights. By removing trade barriers and integrating on matters of economy, politics and security, ASEAN looks forward to becoming a European Union-like community in 2015. If this comes to a reality, ASEAN will have a greater leverage in international politics.

In order for the bloc to become a vibrant and responsible body, it needs to protect the welfare of the ruled and not just the rulers. The association needs to review its policy on Burma. Will ASEAN leaders continue to say that it is not our business when neighbours' houses are on fire, women are raped, thousands of villages are destroyed and thousands of people are forced to flee across borders?

The association needs to start addressing human rights problems - the issue on which the body has consistently failed. Environmental Front • Brunei Political Front

• Security, Agriculture, Education Likely To Top LegCo Agenda The first meeting of the fifth session of parliament begins today with the opening ceremony being officiated by His Majesty the Sultan and Yang Di-Pertuan of Brunei Darussalam.

Among topics that are likely to be on the agenda for this year's session apart from the budget allocation, are the state of national security, agricultural development, religious education and education as a whole as these were the major issues that came into focus and which need attention throughout the year.

Brunei's 1959 Constitution provided for a 33-seat State Legislative Council, or Majlis Mesyuarat Negeri, with 16 directly-elected members, which was disbanded in 1962 by His Majesty's -father, Al-Marhum Sultan Haji Omar 'Ali Saifuddien Sa'adul Khairi Waddien, following a state of emergency.

322 Revived five years ago, the State Legislative

Council, has since then been actively involved in the nation's current development and progress. Having demonstrated its significance in bringing together matters raised by the public and the government's policies, the council has seen fruitful results from its meetings over the years.

During a session in 2006, council members requested for more efficient application procedures for business licences, which resulted in simplification of the procedure to apply for certain licences. This among others, have helped to shape the country's current business policies and promoted greater transparency among the government and the private sector dealings opening avenues to the international arena.

The ceremony, which will first hear a review of the minutes of meeting for last year's session, will then begin with the arrival of all council members, prominent state leaders, businessmen and invited guests. From here, the council will then await for the arrival of His Majesty the Sultan and Yang Di-Pertuan of Brunei Darussalam.

From here, on the date of the postponement, the national agenda items to be discussed will he disclosed. As representatives of the nation, the nation's leaders and statesmen will hopefully be able to conduct business with more transparency through the State Legislative Council and not only speak for the masses but hear the voices of the people regarding their concerns.

Last year, the public also called for more news and television coverage of the proceedings as this would benefit the people.

• 'Do not rely on govt to provide employment' JOBSEEKERS and employers should no longer depend on the government to provide employment, said the Minister of Energy at the Prime Minister's Office yesterday.

Strong commitment from all parties concerned is important to overcome the problem of unemployment among youths, said Pehin Orang Kaya Seri Dewa Major General (Rtd) Dato Seri Pahlawan Hj Mohammad Hj Daud, adding that entrepreneurship is an area that youths can pursue.

The Business Micro Grant initiative by Brunei Economic Development Board (BEDB), Youth Development Centre and Alcoa Inc, to encourage entrepreneurship is a good example of overcoming the employment issue, the minister said.

He said that recipients of the business start-up programme are hoped to decrease the rate of unemployment and shoulder the responsibility to help realise the Vision 2035, where His Majesty's Government aims to develop a dynamic and sustainable economy that has one of the world's highest per capita income.

323 It is also hoped that recipients of the assistance programme would realise their dreams in developing their business, albeit small, to achieve better and quality living standards, Pehin Dato Hj Mohammad said.

The micro grant which came in the form of equipment, were given to 16 recipients from the Youth Development Centre, aged from 21 to 40 years, who are interested to venture into various industries.

The micro grant, which is part of the Youth Skills Development Programme, is under the purview of BEDB, who also facilitates the flow of grants which were contributed by several private companies, namely the Alcoa foundation and Bank Islam Brunei Darussalam .

• 5th Legislative Council Session Begins Today Legislative Council proceedings get under way today at the Legislative Council building with the first sitting of the fifth session.

The highlight of the opening today will be a Utah by His Majesty the Sultan and Yang Di-Pertuan of Brunei Darussalam

According to the itinerary, the first day will also see the approval of the minutes of last year's sitting before awaiting the arrival of the members of the royal family, royal salute and guard of honour. Traditionally in the past, the meetings have included the tabling of the annual budget, to table the motion of thanks and highlight issues pertaining to people's interest, current issues, economy, social and so on in an environment where the Legislative Council members are requested to oblige with the standing orders and rules.

Economic Front

• drug smuggling syndicates(social) In An alarming state of events, recent reports of Bruneians involved with international drug smuggling syndicates have caused a stir in the relatively peaceful state of Brunei.

Last month, the Narcotics Control Bureau (NCB) confirmed that a 26-year-old Brunei an woman had attempted to smuggle heroin into Shanghai and has since been detained at a corrections centre in China.

While the amount of heroin she tried to smuggle remains undisclosed, it was reported that the woman claimed to have been deceived by an African man whom she had met online. In September last year, a Bruneian man was detained in Santiago Chile for trying to smuggle drugs.

324 Meanwhile, in neighbouring Singapore, AFP reports have detailed similar cases with over a dozen Singaporean women arrested for drug smuggling after apparently being seduced by West African men.

These reports bear a striking similarity to the accounts of local drug runners caught red handed by foreign and local authorities. In Singapore alone, 12 arrests have been made in just four months, the Straits Times reported. In Brunei, the local bureau revealed last month that several Bruneians have been detained in suspicion of their involvement with these syndicates as drug smiles for the distribution of illegal drugs in foreign countries.

In a press statement, the NCB warned members of the public that locals may also have been recruited to find more victims through their own friends and families, luring them with promises of jobs, all-expenses paid vacations or even money and gifts.

Social networking web sites and online chatting rooms have been identified by the local bureau as well as Singapore's Central Narcotics Bureau (CNB) as one of the syndicates' point of contact with their would-be victims.

Meanwhile, the Narcotics Control Bureau has advised the public to be wary of overseas job offers and warned locals travelling abroad not to accept packages whose recipients are unknown to them

Business and Politics in Muslim World

India

Sadia Khanum

7th March 2009 to 13th March 2009

Presentation date: 18th March 2009

Political front:

• BJP‐BJD ties break down, NDA shaken • Ahamed in Malappuram, Basheer in Ponnani • 'Muslims shouldn't vote on basis of religion' • BJD keeps options open for post‐poll alliance • 9 political parties come together to form Third Front • NCP‐led Meghalaya government loses majority • Cong, Trinamool reach seat‐sharing agreement in WB • 2009: Advani, 2014: Modi? • Muslim vote will count here • Safe for saffron, MP isn't going Cong way

325 • Every sixth voter is from Uttar Pradesh • Third Front will help only communal forces: Congress

Mumbai Attacks and Aftermath:

• 26/11: Pak investigators may stop probe • 26/11 trial to begin on March 23 • India hands over replies to Pak

Domestic Situation:

• 2 Dalits killed in TN over temple entry • Naxalites slaughter four of a family in Bihar village • Church attacked in Bihar, priest injured • Two killed in communal clash

Economic Front:

• India Inc plans cost‐cutting, says study • 5 lakh lose jobs • Inflation rate falls to 2.43% • Six‐hour daily power cut for industries in Andhra Pradesh • Orissa continues to attract investors, says survey • Industrial growth shrinks

Geo‐strategic developments:

• U.S. assures India it will proceed with nuclear deal

Kashmir:

• Curfew‐like situation in Srinagar • J‐K Govt swoops down on 'corrupt' bureaucrats • “No U.S. mediation” • PDP decides to go it alone

Social front:

• Over 3,000 still in Orissa camps • Those unsung artists of Slumdog • Unruly lawyers started violence, police exceeded limits: Srikrishna • Go vote, India Inc tells employees

Foreign Relations:

326 • Hindu families from Pak seek refuge in India • Musharraf: let’s move beyond burden of history • We don't need your advice: Muslim leader to Musharraf • CISF commandos to protect Indian diplomats in Pak • CCS reviews situation

Political front:

BJP­BJD ties break down, NDA shaken

In what is a major setback to the NDA campaign, the BJP‐BJD ties broke down on Saturday night with Orissa chief minister Naveen Patnaik announcing that he would go to polls on his own and his 11‐year understanding with the saffron camp was off. The talks between Patnaik and BJP ended on an abrupt note when the BJD leader made a "humiliating" offer of just about half a dozen Lok Sabha seats of the 21 seats in Orissa. While BJP kept mum after the talks ended, the party's senior leadership will take stock of the situation in Delhi on Sunday. It is clear that Patnaik was not really keen to continue his alliance with BJP as he set out terms that the safrron party, even if its stretched itself, would not have been able to agree to. The BJD boss appears to be convinced that he is better placed to win the Lok Sabha and assembly elections without the BJP. "We were stressing on the Winn ability factor but this did not work out. It is now clear that we will face the elections on our own," said Patnaik after the talks failed. The BJP has been taken off guard despite the evidence on the ground suggesting that the party has been steadily in decline. Even in western Orissa's tribal belt, BJD has begun to win more seats in the local body elections. BJP has missed the point that its appeal has become increasingly restricted to only its core cadres and incidents like Kandhamal have only created a surge amongst the faithful. The view of BJP leaders is that Patnaik has taken a calculated decision that may enhance his status as a regional leader but could still be open to a post‐election deal with NDA if the numbers work out. The BJD could also go with a "third front" formation if such a situation arose. Yet, the ruthless streak that Patnaik has dispalyed surprised BJP even though he has shown it in dealing with inconvenient elements in his own party. It is felt that BJD's bold strike is also based on its assessment that the party was gaining not just at the expense of BJP but also eating into Congress support. Both Congress and BJP suffer the drag of uninspiring leadership and this has accrued to the benefit of the BJD over the years. Patnaik kept the BJP on tenterhooks through the day.

Ahamed in Malappuram, Basheer in Ponnani

The Indian Union Muslim League (IUML) became the first major party in the Malappuram to announce its candidates for the 15th Lok Sabha elections to be held on April 16. Party’s national president E. Ahamed will seek mandate from the Malappuram constituency. IUML State secretary E.T. Mohammed Basheer will contest from Ponnani. IUML State president Syed Mohammedali Shihab Thangal announced the candidates in a two-sentence media briefing after a meeting of the party’s parliamentary committee at his Kodappanakkal house at Panakkad, near

327 here, on Friday evening. Apart from the candidates, several IUML leaders, including State general secretary P.K. Kunhalikutty, Malappuram district president Syed Hyderali Shihab Thangal, district general secretary P.K. Abdu Rabb, M.P. Abdussamad Samadani, K.N.A. Khader, M.K. Muneer, P.V. Abdul Wahab, MP, and K.P.A. Majeed, were present at the media briefing. Mr. Ahamed and Mr. Basheer later told presspersons that they were entrusted with a huge responsibility and who they would face in the electoral battle would not matter to them. Mr. Ahamed has been representing the Muslim League in Parliament since 1991. He was elected to the Lok Sabha from Manjeri in 1991, 1996, 1998, and 1999. In the last general elections held in 2004, Mr. Ahamed was elected from Ponnani with a margin of 102,758 votes. For Mr. Basheer, who represented the party in the Assembly for three consecutive terms till he tasted defeat in the 2006 elections in Tirur, this will be the maiden electoral battle to the Lok Sabha. Both seats from Malappuram district were known as IUML bastions till the 2004 general elections. The IUML suffered the biggest shock in its parliamentary history when T.K. Hamza of the CPI(M) defeated K.P.A. Majeed by 47,743 votes in Manjeri in 2004, virtually disrupting the part juggernaut. Manjeri has vanished in the recent delimitation, which has given birth to Malappuram. In Ponnani too, the supremacy of the IUML has begun to be challenged, although the party has been winning from there with huge margins.

'Muslims shouldn't vote on basis of religion' A prominent Islamic body has issued a decree asking Muslims to exercise their franchise but said one should not vote for a party or leader just on the basis of religion. "The vote should not be kept back," leading Islamic seminary Darul Uloom Deoband said in a fatwa in response to a question whether Muslims should vote in the elections. "One should vote for the party and the leader that is better and works in favour of Muslims and the country," the fatwa said, adding, "India is a democratic and secular country. Hence it is out of place to look at its politics in Islamic perspective and test the parties and political leaders on Islamic principles." Deoband seminary's Darul Ifta, which issues fatwa or religious decrees on different issues, declined to favour any particular party or candidate and left it to the people to decide whom to vote. "The status of vote is as testimony and witness; so it is the responsibility of every Muslim to utilise it as much as possible correctly," the fatwa said. Echoing similar views, Jamiat Ulema‐e Hind spokesman Maulana Abdul Hameed Nomani said "Everyone, who has a voting right, must come out to vote." "The voters should keep in mind about their and nation's welfare while casting their valuable votes," Ilyasi said. Maulana Umer Ahmed Ilyasi, Secretary General of All India Organisation of Imams of Mosques, said: "Voting is a fundamental right. It must be exercised by every Muslims." "It is their responsibility. If someone is not voting then he or she is doing wrong," he said.

BJD keeps options open for post­poll alliance Keeping its options open for the post‐election scenario, the ruling BJD in Orissa on Tuesday said that it was not part of any front or political formation at the moment despite its new‐found bonhomie with the Left. "We are neither part of the NDA, UPA nor Third Front," BJD Secretary General Damodar Rout told reporters here on the eve of the Naveen Patnaik‐led government's trial of strength in the assembly on Wednesday following the snapping of the party's 11‐year‐old alliance with the BJP. "Neither the Congress nor BJP is our enemy. They are political opponents and we will campaign against them during elections," he said. The BJD would take a stand on

328 joining any front only after the elections, he said. "We will support the group which promises to protect the interest of the state," Rout said while not ruling out the possibility of backing NDA again or supporting UPA in forming a government at the Centre. Denouncing BJP's withdrawal of support to the Patnaik government barely an hour after seat‐sharing talks failed, the BJD leader alleged that the saffron party "betrayed" the trust of the people who had chosen Naveen Patnaik as the chief minister.

9 political parties come together to form Third Front The first rally of the Third Front, which is seeking to emerge as an alternative to the combines spearheaded by the Congress and BJP, began in Tumkur near Bangalore on Thursday. The Third Front, an amalgamation of CPI, CPI‐M, Telangana Rashtra Samithi, Telugu Desam Party, AIADMK, Forward Bloc and RSP, besides founding member JD(S), was formally launched in this BJP‐ruled state which has seen many a watershed in the country's political history since the formation of non‐Congress government at centre in 1988. Gowda had claimed on Wednesday that BJD led by Orissa CM Naveen Patnaik, which had broken ties with BJP, had agreed to join the Front. But BJD had made it clear that it had not made up its mind on the issue. The JD(S) chief, who is playing a key role in cobbling up the third front, had said that the BJD would not take part in the rally. Another major absence is likely to be that of AIADMK chief Jayalalithaa. Party sources said she would depute AIADMK parliamentary party leader V Maitheriyan to attend the rally on her behalf but did not cite any reason for staying away.

NCP­led Meghalaya government loses majority The NCP‐led Meghalaya Progressive Alliance (MPA) government on Wednesday lost majority in the state assembly after the lone MLA from Khun Hynniewtrep National Awakening Movement (KHNAM) withdrew support, a day after two independents pulled out of the alliance. KHNAM MLA and state Urban Affairs Minister Paul Lyngdoh tendered his resignation to Chief Minister Donkupar Roy.” I have learnt through reliable sources that one of the chief architects of MPA, P A Sangma, has been holding parleys with Congress for the formation of an alternative government, thereby violating the spirit of the alliance," Lyngdoh said in his resignation letter. "In the light of the developments, I deemed it fit to be in liberty to walk out of the coalition," he said. The ruling coalition now has 30 seats in the 60‐member house even as there are indications that more MLAs could shift allegiance. Two Independent MLAs, one of whom had joined the alliance two weeks back, had withdrawn support to the MPA on Monday. While the two independents are in the Congress camp, it is not clear whether Lyngdoh has joined the Opposition Congress. The 12‐month‐old five‐party ruling coalition of MPA now has 30 MLAs ‐‐ NCP 15, UDP 10, Hill State Peoples Democratic Party 2, BJP 1 and two Independents. The Congress is, however, the single largest party with 26 seats.

329

Cong, Trinamool reach seat­sharing agreement in WB Congress and Trinamool Congress on Wednesday night reached a seat‐sharing accord for Lok Sabha polls in West Bengal to put up a joint fight against the state's ruling Left Front, a day after the Mamata Banerjee‐led party had served a 48‐hour ultimatum for the agreement to be clinched. Capping weeks of hard bargaining, Congress finally accepted Trinamool Congress' seat‐sharing formula and will contest 14 of the 42 seats while Trinamool Congress would be in fray in 28. "The alliance has been finalized. Congress will contest in 14 seats", senior Congress leader Kesava Rao said. He said a formal announcement about the seat‐sharing agreement would take place any moment. Sukhendu Sekhar Roy, an emissary of WBPCC president and External Affairs Minister Pranab Mukherjee, met TC chief Mamata Banerjee at her south Kolkata office to convey Congress' decision to accept her party's seat‐sharing formula. Roy said he met Banerjee on behalf of Mukherjee to convey the PCC chief's best wishes to her "to give leadership to the important political fight (Lok Sabha poll) and beyond." Banerjee had on Tuesday given the ultimatum to Congress to communicate its decision on seat‐sharing accord proposed by TC between the two parties. She said TC will contest 28 seats leaving 14 to Congress.

2009: Advani, 2014: Modi?

In November 2007, when Gujarat last faced Assembly elections, it is reported that the BJP leadership cleared a list of 182 BJP candidates submitted by Chief Minister Narendra Modi in just 15 minutes. It was a sort of carte blanche given to the Gujarat CM by his mentor LK Advani. The stakes are higher for Advani this time. As the BJP’s prime ministerial candidate, he would want 20 or more BJP MPs from Gujarat to have a realistic chance to bid for the top job. And there is only one person he can trust. Modi, then the BJP’s organisational secretary of Gujarat BJP, was seen as the architect of the party’s ascendance to power in 1993 for the first time on its own strength. That was the period when Advani’s popularity was at its peak. The subsequent years didn’t augur too well for Modi. He was seen as the unconstitutional power behind the throne of Keshubhai Patel, the CM. Shankersinh Vaghela’s rebellion had more to do with Modi’s behind‐the‐scene machinations than Keshubhai’s style of functioning. When the compromise deal was struck to save the government, Modi found himself banished from Gujarat, but not entirely in political wilderness because Advani ensured he had important roles to play in Himachal Pradesh and Madhya Pradesh. It is well known that when Keshubhai lost two by‐ elections in 2001, and several claimants tried to topple him from power, it was Advani who swung the selection in Modi’s favour. At that time, he appeared as a surprise choice — not having contested any election ever. he 2002 riots saw even the then prime minister Atal Bihari Vajpayee and Gujarat governor Sundar Singh Bhandari baying for Modi’s blood. But Advani

330 stood by him through this worst crisis of his political career. Modi paid him back when Advani made the famous comments in support of Mohd Ali Jinnah, while on a visit to Pakistan in 2005, and even though the Gujarat CM disapproved of his mentor’s comments, he played a crucial role in silencing the Sangh Parivar which questioned Advani’s patriotism. Many in the BJP now believe that while Advani may not have clearly anointed his successor, he would like to pass on the baton to Modi. The guru‐shishya deal could well be a quid pro quo: Advani in 2009 and Modi in 2014. Modi will pray Advani is around as the father figure when his turn comes.

Muslim vote will count here

A new entity on Delhi's political map, North‐East parliamentary constituency includes nine assembly segments of former East Delhi and Timarpur of the erstwhile Sadar Bazar LS seat. With SC, OBC and Muslim voters together comprising almost 55% of the total electorate, the outcome will heavily depend on the voting pattern of these groups. The presence of unauthorized colonies and villages can also tilt the balance. The middle and upper middle class are restricted to posh areas in Mukherjee Nagar and Delhi University campus but their impact on electoral results remains questionable. Even as the Congress and the BJP are neck and neck at the assembly level with five and four seats respectively Gokalpur is with BSP experts point out that the support of unauthorized colonies may give the Congress an edge. The political power in the new constituency seems to rest with Brahmins as three and 11 members from the community are present legislators and councillors respectively. But the overall result may depend on caste alliances and voting patterns in different areas. Though the Brahmin factor can not be shrugged aside, parties will work overtime to woo the Muslim, OBC and SC voters. Contrary to the assembly results, the MCD elections saw a saffron sweep in this constituency with BJP winning 28 of the 40 seats while Congress could manage only four. But this hardly any indicator of things to come. With no clear trend available, many startups would want to stake their claim on this political greenfield. With Congress MP Sandeep Dikshit reported to be opting for the new East Delhi post delimitation, many aspirants are eying North‐East. The screening committee has also recommended Dikshit's name from East. Shahdara MLA Dr Narendra Nath's name has been proposed for North‐East. MP Jagdish Tytler is also reported to be targeting this seat after his Sadar Bazar constituency was dissolved in delimitation. With Muslim votebank playing a key role here, Seelampur MLA Mateen Ahmed and Mustafabad MLA Hasan Ahmed also want to contest from this seat. Youth Congress general secretary Nadeem Javed wants to play the Rahul card to get the ticket from the seat. From the BJP, the names of ex‐cricketer Kirti Azad and former MP Lal Bihari Tiwari are doing the rounds.

Safe for saffron, MP isn't going Cong way

331

Among the three ‘big' states where RSS‐backed Jana Sangh/BJP aimed to create their own state government was Madhya Pradesh the other two being Gujarat and Rajasthan. The result has been edifying for Congress in all the three states, with MP having voted Shivraj Singh Chouhan back to power in December 2008 the first time BJP bucked anti‐incumbency in the state with an impressive 144 out of 230 assembly seats. For BJP, therefore, MP is a ‘‘safe'' state. Even in the face of adversity in 2004, the saffron party swept 25 out of 29 Lok Sabha seats. Opposed to this, Congress was at its lowest ebb winning only Chhindwara, Guna, Gwalior and Jhabua (now Ratlam after delimitation) in 2004. The party has been hamstrung by factionalism and the fact that it has a chief in Suresh Pachauri who is dismissed as a feather‐weight by other Congress bigwigs. True, with just four seats in the outgoing Lok Sabha, things can only look up for Congress, but for that to happen, the party's top state leaders, Digvijay Singh, Kamal Nath and Arjun Singh, will have to marshal their resources against BJP instead of deploying these to undercut each other. At the moment, Congress has three sure shot winners in Chhindwara, Jhabua and Guna it announced the names of 12 candidates on Thursday. While Chhindwara in south MP looks set to re‐elect Kamal Nath, tribal dominated Ratlam (previously Jhabua) is also a traditional Congress base, from where Kantilal Bhuria will contest. Despite Jhabua's proximity to Gujarat, BJP has failed to alter the voting pattern of Bhil tribals here. Guna, on the other hand, understands no political ideology: Rajmata Vijayaraje Scindia stood from here the first time in 1957 as a Congress candidate and won. In 1962, she was on a Jana Sangh ticket and won. In 1989, ‘91, ‘96 and ‘98 she was re‐elected as a BJP candidate whereas her son Madhavrao, a Congressman, was victorious in 1980 and 1999. A BJP source said, ‘‘It's futile trying to hold these three seats. If we focus on winning Guna, Chhindwara and Ratlam, it would mean shifting focus from at least 22 seats where we have an advantage.'' If Congress is strong in Guna, BJP is playing palace politics in Gwalior by fielding Vijayaraje's youngest daughter, Yashodhara. Guna and Gwalior have both been Scindia strongholds, and there's a tradition that family members never contest against each other. This continues with nephew Jyotiraditya fielded by Congress from Guna and aunt Yashodhara for BJP from Gwalior. But Yashodhara could be on unsure ground. She won Gwalior bypoll in 2007 with a slim 36,474 margin. In two assembly segments, she lost to Congress's Ashok Singh. Gwalior has repeatedly showed it's not as loyal to Scindias as Guna. In 1998, Madhavrao scraped through with 26,279 votes as the maharaja's town seemed to prefer Jaibhan Singh Pavaiyya, a farmer's son fielded by BJP. Madhavrao did not contest from Gwalior again. While Sushma Swaraj is safe in Vidisha, Union minister Arjun Singh's son Ajay might contest from Sidhi, which was, until the delimitation, reserved for Scheduled Tribes. Although Congress won Sidhi bypoll in 2007, it was by a wafer thin margin of 1,586 votes. It might go down to the wire again: in the assembly polls three months ago, BJP won seven out of Sidhi's eight segments. Arjun Singh, who won from Satna in 1991 but lost in ‘96, may get his daughter Veena fielded this time. Hoshangabad is in focus because PCC chief Suresh Pachauri is going to bite the bullet here. Sadly, Pachauri's fight will be more against his party rivals than BJP. He has contested elections only once, in 1999, when he was up against a rampaging Uma Bharati in Bhopal and lost by 1.68 lakh votes. Pachauri's problem is that none of the state's

332 factions led by Arjun, Kamal Nath, and Digvijay accept him as their leader. If Pachauri gets a leg‐up from the factions, he stands a chance. Else, he might have Arjun for company who lost Hoshangabad in ‘98 by 69,000 votes.

Every sixth voter is from Uttar Pradesh

Uttar Pradesh, the largest populated State in the country with 80 Lok Sabha seats, will have the distinction of having every sixth of the Indian voter from that State in the ensuing Lok Sabha elections. The State, which will have polling on all the five phases April 16, 23, 30, May 7 and 13 has a total electors of 11,64,24,101 out of 71,42,87,814 voters in the country. They are eligible to exercise their franchise through 1,28,112 polling stations in the State. The Unnao Lok Sabha constituency in U.P. will have the highest number of 18,97,474 electors. Lakshadweep seat will have the lowest number of 44,424 electors, who will use 40 polling stations.The Election Commission plans to appoint 1800 observers for the polls to ensure free and fair elections and also to monitor the election expenditure of the candidates and political parties. As many as 10.5 lakh electronic voting machines will be used.

Third Front will help only communal forces: Congress

The Congress and the Bharatiya Janata Party (BJP) were one on Thursday in criticising the launch of the “Third Front” near Bangalore. While the BJP described it as a political ‘nautanki’ (comic drama), the Congress said it was a ghost that put in an appearance every once in a while; only to help communal forces. Making a suo motu statement on the latest “incarnation” of the Third Front, Congress spokesman Manish Tewari said this was not a in Indian politics but just an attempt by some regional parties along with other national parties to remain afloat in national politics. Had this been a proper third alternative then the parties would have come together way ahead of the elections and evolved a common programme to display to the electorate how they were different from the United Progressive Alliance (UPA) and the National Democratic Alliance (NDA). The Congress also sought to point out that the Third Front had among its members the All‐India Dravida Munnetra Kazhagam, which till yesterday was sending feelers to it. Referring to the infighting within the Left Democratic Front in Kerala, Pradesh Congress Committee president Ramesh Chennithala said that while they were putting up a united face in Karnataka, the Janata Dal (Secular) and the Communist Party of India (Marxist) were wrestling over a seat in Kerala. The beneficiaries of the contradictions within the Third Front, according to Mr. Tewari, had always been the communal forces which had grown stronger with every failed Third Front experiment. “In 2009, when the NDA is looking weakened

333 and the entire politics of this country is revolving around the UPA, the effort to forge a third front will only fuel communal forces,” the Congress said. It urged voters to further cement the secular foundations of the country that was reinforced by the UPA. While describing the Third Front as a “nautanki,” the BJP said some realignment of political forces could be expected after the elections. “The election itself has five phases, and the sixth phase would be after the results are out,” BJP spokesperson Prakash Javadekar said, clearly indicating that parties in one front or the other could be looking for greener pastures elsewhere after the results. However, he maintained that the Third Front did not have the capacity or the capability of giving the country a cohesive government. “The Third Front has no leader there are many prime ministerial aspirants it has no ideology and no policy. The NDA is the only trustworthy and credible alternative to the UPA and Indian polity is essentially bi‐polar with the BJP and the Congress leading the two political formations.”Mr. Javadekar also lashed out at the Left parties for using their energies to collect a motley group of parties under the Third Front umbrella. Instead, he said, they would be better advised to focus their time and energy on maximising their seats in Kerala and West Bengal or “face defeat” in their two bastions.

Mumbai Attacks and Aftermath:

26/11: Pak investigators may stop probe Pakistani investigators have informed the government that they may have to stop their probe into the Mumbai attacks due to lack of cooperation by authorities in India and several other countries. The Federal Investigation Agency, which is probing the Mumbai terror attacks, has informed the interior ministry in a letter that it would have custody of some suspects only for a few more days and it was thus imperative to get cooperation from the other countries, Dawn News channel quoted its sources as saying. The FIA said it "may have to stop further investigations" against the suspects due to the lack of cooperation by India and other countries, the sources said. There was no immediate word from the interior ministry on the issue. The investigators told the interior ministry that they had not received the Indian police's charge sheet against Ajmal Amir Kasab, the lone terrorist captured for the Mumbai attacks, and other suspects. There was also no response from the FBI and the intelligence agencies of Spain, United Arab Emirates, Kuwait and Saudi Arabia for requests from Pakistan for information related to the terrorists involved in the attacks.

26/11 trial to begin on March 23

From March 23, the Arthur Road jail, Mumbai, will witness the most famous trial on its premises till date. That day, the special sessions court set up at the jail will convene for the first hearing of the November 26, 2008 Mumbai terror attack case. Metropolitan magistrate N. Shrimangale gave the order on Monday and committed the case to the sessions court. The magistrate also spoke to the lone surviving gunman, Mohammad Ajmal Amir ‘Kasab,’ who addressed the court through video-conferencing. Ajmal told the court that he had received the charge sheet but did not understand its contents. He demanded the charge sheet in Urdu, according to Special Public Prosecutor Ujjwal Nikam. Ajmal and the magistrate communicated in Hindi. The other two

334 accused, Fahim Ansari and Mohammad Sabahuddin, were also part of the video-conference. They too demanded that the copies of the charge sheet be translated into Urdu. Defence lawyer Ejaz Naqvi submitted an application for the same, which the court rejected. The magistrate accepted Mr. Nikam’s contention that as Marathi is the official language in subordinate criminal courts, the charge sheet conformed to the norm.

India hands over replies to Pak

Responding to Pakistan's questions on Mumbai attacks, India provided more evidence, including forensic reports, to Islamabad and asked it to proceed fast in prosecuting those behind the 26/11 carnage on the basis of the "very comprehensive" and "solid" material. The 400‐page dossier, containing replies to Pakistan's questions, was handed over by foreign secretary Shivshankar Menon to Pakistan's High Commissioner Shahid Malik here, a month after Islamabad posed the queries. The second dossier include telephone conversations of the 10 attackers and their Pakistan‐based handlers, fingerprints and other details of the terrorists who struck in Mumbai besides forensic analysis of GPS, ammunition and other equipment used by the terrorists. Earlier, home minister P Chidambaram said the answers to Pakistan's questions are "very comprehensive" and adequate for it to act fast against the perpetrators of the terror strikes. Chidambaram, who handed over the document along with evidence to external affairs minister Pranab Mukherjee for on‐passing it to Pakistan, said each and every question posed by Islamabad had been answered adequately. "We have put together answers to 30 questions submitted by Pakistan. It is a very comprehensive document, answering each of the 30 questions," he told reporters after emerging from a meeting with Mukherjee.

Domestic Situation:

2 Dalits killed in TN over temple entry A year‐long feud between two caste groups over a local village temple festival culminated in violent clashes and the killing of two Dalits at Senthatti near Sankarankoil in south Tamil Nadu's caste‐sensitive Tirunelveli district. The villagers had been conducting the festival at Muppidariamman (Durga) temple at Senthatti peacefully for many years. But last year, after the temple was expanded, trouble erupted with Dalits and non‐Dalits clashing over temple rights. The two were killed in separate attacks on Friday night. In the first attack Easwaran (60) was killed while returning home on a two‐wheeler from a hospital along with his relative Suresh (27). A gang attacked them with sharp‐edged weapons. Suresh escaped but Easwaran was killed on the spot. "Assailants sliced off his head," a police officer said. The gang then hid themselves behind the bush and later hacked another Dalit Paramasivam (25) to death. "Temple dispute resulted in the attack," the police officer said. Earlier the feud was resolved briefly after a peace committee meeting. The two communities had decided to conduct the festival separately at the end of this month. But all hell broke lose on Friday morning when some Dalits attacked non‐ Dalits. Two women sustained injuries in the clashes between the two communities. A police

335 team was rushed to the spot to bring the situation under control. The same night, two Dalits were attacked and killed.

Naxalites slaughter four of a family in Bihar village Two women and two children of a family were slaughtered by suspected Naxalites in a bloody intervention by the rebels in a land dispute in Bihar's Arwal district, police said on Tuesday. Pluleshwari Devi, mother of Nageshwar Mahto, his wife Lakhmani Devi and daughters Ritu (3) and Mitu (5) were killed by alleged CPI(Maoist) activists at Pachubigha village in the district late on Monday night, superintendent of police G P Sinha said. The rebels slit the throats of the victims and left them to bleed to death. Mahot, police said, had a dispute over a piece of land with his distant cousin Avadhesh Singh, who was suspected to have hired the rebels to eliminate the former. The Naxalites had come looking for Mahto, but on not finding him home, killed the women and children. Nageshwar was not at home when the incident took place. A leaflet left by the Naxalites threatened Nageshwar with eliminating others in his family if he did not settle the dispute in favour of Avadhesh Singh.

Church attacked in Bihar, priest injured

A church was attacked with bombs and guns during a mass, injuring its priest and five women devotees at Badhia village of Bihar’s Rohtas district on Sunday.

Two killed in communal clash Two people were killed and at least seven injured as the police opened fire on clashing groups of two communities in Varanasi town of Uttar Pradesh on Wednesday, an official said here. The police opened fire to quell communal violence that broke out during Holi celebrations near the Gauriya Masjid in Bazaridiha locality under the Bhelpur police station in the heart of town, a home department spokesman said. "The trouble erupted after a group of Hindu revelers went about splashing colours on some Muslims coming out of a madrassa," Varanasi city superintendent of police Vijay Bhushan said. "What began as a verbal duel flared up into a violent clash, as both sides refused to calm down," he said. "With the rioters taking to brick‐ batting and even firing, the police were left with no option but to use force. Initially, we tried to control the violence by lobbing teargas shells but when some people opened fire, we were compelled to retaliate," Bhushan said. "We have detained at least 10 people from each side and intensified security in the locality where we will maintain a round‐the‐clock vigil to prevent any recurrence of violence." He described the situation as "well under control".

Economic Front:

India Inc plans cost­cutting, says study A majority of Indian Corporates have lowered their revenue forecasts for this year and are aggressively looking at slashing their operational expenses through cost‐cutting measures,

336 including lower salary hikes, a study by Watson Wyatt said. The survey stated that 57 per cent of the respondents have lowered their revenue forecast for 2009, while 13 per cent are contemplating a downgrade. However, 27 per cent are still maintaining their earlier estimates but only a meagre 3 per cent have raised their estimates for the year, the Watson Wyatt study said. Watson Wyatt is a global firm, which specializes in dealing with people and financial issues. The study, which polled 146 decision‐makers from top Indian corporates, found that over 70 per cent of the respondents felt that the current economic slowdown would last between 6 months and 18, while 20 per cent felt that it would last beyond 18‐months. Only 5 per cent estimate the slowdown to be over within six‐months, the study said. "The Asia‐Pacific region is now looked as the driver of growth and India is expected to contribute substantially next to China," Watson Wyatt India Managing Director Dhritiman Chakrabarti said.

5 lakh lose jobs

India has lost over half a million jobs in the last three months of 2008 in the wake of global economic slowdown, the World Bank has said. “Cambodia... has lost 30,000 jobs in the garment industry, its only significant export industry. More than half a million jobs have been lost in the last three months of 2008 in India, including in gems and jewellery, autos and textiles,” the multilateral agency said.

Inflation rate falls to 2.43% Inflation fell to more than a six‐year low of 2.43% for the week ended February 28 against 3.03% in the previous week mainly on account of a fall in prices of manufactured products and some food items, justifying the RBI's rate cuts. The wholesale price index stood at 6.21% during the corresponding week a year ago. During the week, prices of steel ingots, batteries and nylon yarn declined. Prices of maize, arhar and moong declined by one% each. However, prices of fuel remained unchanged at the previous week's level.

Six-hour daily power cut for industries in Andhra Pradesh

Industries and large commercial establishments all over Andhra Pradesh received a shock on Wednesday as the power utilities began enforcing a daily power cut for six hours. This step was taken by the four power distribution companies in compliance with orders issued by AP Transco to conserve power for agriculture and domestic sectors. The timings of the cut, however, varied from place to place, though it is mostly in the evening. The discoms have been given freedom to exempt the industries in their respective jurisdiction if they can manage the situation within their allocated quota. The companies also started implementing supply-holiday for two consecutive days in a week where industries chose this option and where dedicated feeders were available exclusively to serve the industries. The supply is being switched off for six hours (6 a.m. to 12 p.m.) to software establishments, including those at Madhapur, Hyderabad, as opted by them in preference to two-day weekly power holidays. Bulk consumers in the commercial sector like big hotels/restaurants and malls have also been brought under the six-hour cut. Before going ahead with the cut, the discoms, at the instance of the Transco, informed industries and commercial establishments that they could choose two-day power holiday or six-hour daily load-shedding.

337 Orissa continues to attract investors, says survey

Despite the fact that not many large industrial projects for which memoranda of understanding have been signed have taken off, the State continues to attract more investments and investors are still keeping high hopes. The Investment Survey 2008 carried out by the United Nations Industrial Development Organisation (UNIDO) says so. Aiming to have a good insight about business climate prevailing in Orissa, UNIDO interviewed 309 establishments, including micro and small to large industrial units across 14 districts. The survey report was released recently. The UNIDO has found overall satisfaction level on investment facilitation in clearance process. However, there was relative dissatisfaction in the overall land allotment clearance processes, for example, in water connection, pollution control and electricity clearances, says the UN agency. Around 93 per cent of the respondents expressed satisfaction over the facilities available in the State. Maharastra leads the table with 94 per cent satisfaction level against the national average of 76 per cent. About 52 per cent establishments are of the view that they will definitely continue business in the State whereas 43 per cent said they ‘probably will’. Importantly in respond to a question on their expansion plans 30 per cent answered in affirmative while 36 per cent said ‘they probably will’. Interestingly 40 per cent of the surveyed units said they would go on to recommend Orissa as an investment destination, T. Tilhan, coordinator, the UNIDO survey team, said.He said the main sources of dissatisfaction appeared to be lack of adherence to timelines, unavailability and ineffectiveness of computerised process for clearance system and unavailability of modern communication. Alejandro Vera Casso of investment promotion unit for Asia-Latin America under UNIDO said Industrial Policy Resolution-2001 of Orissa was a major turning point in attracting investments. Orissa has been a land of rich mineral resources. During last 50 years, there have been steel booms on three occasions. But, never before the State had capitalised on that. But this time the case was different, Mr. Casso said. Commenting on progress of South Korean Steel major POSCO’s project in Orissa, he said although there had been not much development in ground level, the company had made good development in policy matters. The company was gearing up to start the project, Mr. Casso said. Orissa has a per capita income about 250 US dollar, which was less than the national average and close to half of its population below the official poverty line.

Industrial growth shrinks

For the second month in a row and the third time in four months, the growth rate in industrial production slipped by 0.5 per cent in January mainly owing to shrinking output by manufacturing and mining sectors as compared to a relatively robust 6.2 per cent growth achieved in January last year. According to the IIP data released here on Thursday by the Central Statistical Organisation (CSO), the manufacturing sector, having a weight of nearly 80 per cent in the index, clocked a fall of 0.8 per cent in January, while mining output also shrank by 0.4 per cent. Electricity generation, however, reported a much lower growth rate of 1.8 per cent as compared to 3.7 per cent in January 2008. The lower industrial growth for two consecutive months for the first time in a span of 16 years appears to be a clear reflection of the fact that the spurring effects of the stimulus packages are yet to percolate down to the two major sectors of the Index of Industrial Production (IIP). “All three stimulus packages have not picked in. The industrial production figures would not reflect their impact,” Chief Statistician Pronab Sen said. In the event, with industrial growth declining during October, December and January, the partial recovery witnessed in November 2008 is being dubbed as an aberration. For the first ten

338 months (April‐January) of the current fiscal, industrial growth works out to three per cent as compared to a growth of 4.8 per cent for the whole of 2008‐09, as per the official advance estimates. In such a scenario, achieving a GDP (gross domestic product) growth of 7.1 per cent during the fiscal year is under question. Another silver lining, as per the revised data for December, is that the fall in industrial production was by a mere 0.63 per cent and not a steep two per cent as was initially estimated. In effect, the revised numbers for January too could be better than projected now. “Given the last three‐four months’ trends, it [January data] could result in upward [movements] after revised estimates come [in],” Mr Sen said.

Geo‐strategic developments:

U.S. assures India it will proceed with nuclear deal

The new Obama administration on Wednesday assured India that it will proceed with the landmark India-U.S. nuclear deal, signed during George W. Bush’s tenure, and said the two countries needed to ramp up cooperation in counter-terrorism and global issues such as climate change. Senior State Department officials gave the assurance to Foreign Secretary Shiv Shankar Menon, who is on a four-day official visit. Mr. Menon on Monday met Secretary of State Hillary Clinton and discussed the nuclear deal, counter-terrorism cooperation, bilateral issues, Sri Lankan conflict and bringing the situation under control in war-torn Afghanistan. During his talks with Under-Secretary for Political Affairs Nicolas Burns on Wednesday, Mr. Menon discussed the landmark civil nuclear deal and other bilateral issues. Ms. Clinton told Mr. Menon that the two countries needed to ramp up their cooperation in bilateral and global issues. “The India-U.S. civilian nuclear deal, its current status and the way forward too were discussed during the meeting,” State Department Acting Spokesman Robert Wood told reporters. “I think there was a bit of a discussion on the additional protocol that was just worked out with the IAEA [International Atomic Energy Agency],” Mr. Wood said. The deal, initiated by Prime Minister Manmohan Singh and the then U.S. President George W. Bush in 2005, was signed in October 2008 after it was approved by the Congress. President Barack Obama last year indicated that his administration will take forward the deal. On Afghanistan, Ms. Clinton listened to the Indian viewpoint and did not ask India to do something specific. “It wasn’t so much that we were asking India to do anything specifically. But the Secretary wanted to hear the Foreign Secretary’s views on the best way forward in Afghanistan, from the Indian point of view. That was, in essence, the basis of the discussion,” Mr. Wood said.

Kashmir:

Curfew-like situation in Srinagar

Normal life was hit on Saturday as authorities imposed an undeclared curfew in most parts of Srinagar following protests over the death of a teenager in Friday’s police firing. In Jammu, the Opposition People’s Democratic Party (PDP) forced the Speaker to adjourn Assembly proceedings. Thousands of police and Central Reserve Police Force personnel imposed tight security restrictions in Nowhatta and adjoining areas. The civilian was killed and another injured when CRPF personnel opened fire in the area on Friday, as stone-throwing protesters were demanding the release of separatists jailed last year. A police officer said: “We have imposed security restrictions to prevent violent protests.” In Srinagar, a strike was observed as shops

339 remained closed and transport services were partially affected. Hurriyat leader Mirwaiz Umar Farooq condemned the firing. The Assembly witnessed an uproar as the PDP members accused the government of being responsible for the killing of innocents. As the members trooped into the well, the Speaker adjourned the House for half hour. After it reassembled, Rural Development Minister Ali Muhammad Sagar made a statement. Finance Minister Abdur Rahim Rather later told journalists that a probe would be ordered.

J­K Govt swoops down on 'corrupt' bureaucrats In a bold move, J‐K government’s top anti‐corruption body State Vigilance Organisation (SVO) has registered a case against seven top bureaucrats for “misuse of official position for illegal transfer of state land” at Gulmarg Kashmir’s famous health resort to influential private parties. The officers, according to the Vigilance Organisation, violated the provisions of Roshni Act which was introduced during the Ghulam Nabi Azad led J‐K coalition to give ownership rights of Government land occupied by farmers across the state. The land transferred to private parties at Gulmarg, however, was earmarked for development of tourist infrastructure under master plan of Gulmarg Development Authority (GDA). According to the Vigilance Organization, a case under prevention of corruption Act was slapped against Mehboob Iqbal, then Divisional Commissioner, Kashmir, Baseer Khan, District Collector, Garib Singh, then Tehsildar, Tangmarg, Farooq Ahmed Lone, then Chief Executive Officer, Gulmarg Development Authority, Farooq Ahmed Shah, then Additional Deputy Commissioner (now retired), Sarmad Hafiz, Joint Director, Tourism Department, Rafi Ahmad, then Assistant Commissioner, Revenue, Baramula and Ghulam Mohi‐u‐Din Shah, Naib Tehsildar, Kunzar for misuse of official position for illegal transfer of State land at Gulmarg worth crores of rupees by misusing the provisions of Roshni Act. Sources in Vigilance, however, said that the Sarmad Hafiz, Joint Director, Tourism Department and Farooq Ahmed Lone, then Chief Executive Officer, Gulmarg Development Authority have been included in the list of officers only because they participated in a meeting. In fact, the minutes of the meeting clearly suggest that the then Chief Executive Officer, Gulmarg Development Authority Farooq Ahmad Lone had categorically raised the issue of the applicability of Roshni Act in the meeting but he was assured by the Revenue officers that they have the requisite clearances. The Tourism official especially the then Joint Director Sarmad Hafeez, according to the minutes, was a silent spectator as his department had no role in the transfer of land. The Vigilance Organisation, however, took a strict line and booked every officer present in the meeting where the decision to transfer the land was taken, irrespective of the quantum of their involvement. The Vigilance Organisation has registered a Case FIR No 8/2009 P/S VOK following a verification conducted into allegations of abuse of official position and illegal vesting of ownership on the land in Gulmarg estate to private parties by the officials of Revenue Department/Tourism Department, as members of the committee constituted under J&K State Land (Vesting of Ownership rights to the Occupants) Act, 2001 during the year 2008.

“No U.S. mediation”

The Obama administration is unlikely to mediate on the Kashmir issue and the U.S. policy of non-interference will continue despite calls for greater American involvement, according to a latest Congressional report. The Indo-U.S. ties appear all set to deepen under Obama’s presidency notwithstanding apprehensions in some quarters about “potential friction” on issues like Kashmir and nuclear non-proliferation, said the 83-page report on ‘India-U.S. Relations’ by the Congressional Research Service (CRS). “Upon the seating of a new U.S. President in 2009, most experts expected general policy continuity with regard to U.S.-India relations,” it said. Referring

340 to some apprehensions that the Obama administration may mediate between India and Pakistan on the Kashmir issue, the report said this is unlikely to happen as the U.S. would continue with its policy of non-interference. “Secretary of State Clinton recognises the dangers of rising tensions in Kashmir while also deferring calls for greater U.S. involvement in the situation, saying the U.S. role will continue to be as it was under the previous Administration: settlement facilitation, but no mediation.”

PDP decides to go it alone

The Opposition People’s Democratic Party will fight the Lok Sabha polls on its own in all six constituencies in Jammu and Kashmir. “We have our own agenda of political resolution of Kashmir and that doesn’t suit any party,” the former Chief Minister, Mufti Mohammad Sayeed, said here on Thursday. Calling for efforts to ensure sustainable peace, Mr. Sayeed said that unless the Armed Forces Special Powers Act was withdrawn, the situation could not become normal. Asked why he did not revoke the Act when he was in power, he said that at that time situation was bad. Now, the number of militants as well as level of violence had gone down drastically.

Social front:

Over 3,000 still in Orissa camps

More than seven months after Orissa’s tribal-dominated Kandhamal district experienced widespread anti-Christian violence, 3,100 people belonging to the minority community are still living in relief camps being run by the administration. About 25,000 people took shelter in 19 relief camps when communal violence was at its peak in the district in the aftermath of the killing of Vishwa Hindu Parishad leader Lakshmanananda Saraswati and four others on August 23 last. The number of people living in the camps has decreased slowly but the 3,100 people in six camps are not willing to leave as they are being told by the communal forces that they can return to their homes only as Hindus. The camps are at Raikia, Tikabali, K. Naugaon, Mandasar, Mandakia and Tiangia, according to Kandhamal District Collector Krishan Kumar. “We are not forcing anyone to return to their villages. People are returning to their homes following the process of peace building and reconciliation,” Mr. Kumar told The Hindu over phone on Saturday. The district administration has sought additional forces for the smooth conduct of the Lok Sabha and Assembly elections to be held simultaneously next month. “We are hopeful that the district will witness a free and fair poll,” Mr. Kumar said. Meanwhile, an independent fact-finding team, comprising prominent social activists, has urged the State government to keep the relief camps open till normality was restored in the affected villages. Observing that the victims should be able to return to their homes with dignity, peace and security, the former Special Rapporteur to the National Human Rights Commission and one of the members of the team, K.R. Venugopal, has written to the State government that “there can never be any dignity if people practising a particular religion here Christianity are told that they can return to their homes only as Hindus.” “Such threats are unconstitutional and the State has a duty to intervene proactively to put a stop to that and guarantee peaceful residence to the citizens with a right to their religious conviction,” Mr. Venugopal said in a letter to G.V. Venugopala Sarma, Secretary in the State government’s Revenue and Disaster Management Department.

Those unsung artists of Slumdog

341 Zakir Mohammed, 11, jumped again and again in a gooey pool of chocolate and peanut butter. These rehearsals made the unforgettable scatological scene in the Oscar-winning movie Slumdog Millionaire. Mohammed, a resident of Garib Nagar, a grubby Mumbai slum, was the stand-in for Ayush Mahesh Khedekar, the youngest Jamal, who emerges out of a pit full of faeces and gets Amitabh Bachchan’s autograph in the movie. “We had day players to stand in for the entire cast everyday, to check light readings and for camera rehearsals. It’s a common practice, said Slumdog’s co-director Loveleen Tandan. Mohammed did not like his task. “They mixed Cadbury and water. I felt icky, but was too scared to say so.” He was paid Rs. 50 a day. No one knows him. He remains as faceless and anonymous as many of the Garib Nagar children who played minor roles in the movie. For the past months, they have seen actors Azharuddin Ismail and Rubina Ali be part of a fantasy story, as they remained bystanders. Over 15 children from Garib Nagar have begged, limped, hobbled, ran, jumped and played cricket in the movie. Many even despised the roles they played, but needed the money. “Who likes to play a beggar? My one hand was tied at the back and with the other I had to beg,” says Nazeem Baddruddin Sheikh, 11. For Rs.50, they had to forgo their education. Going to school is not a part of growing up in Garib Nagar. There are dropouts galore. Even those who do got to seek an education, mostly in Urdu medium, are not regular at school. Most of the children, who missed school for over two months while working for Slumdog, have missed an entire academic year. Since there was a gap, the teacher told us to come the next year directly, says Ayaz Hakim Khan, 14. Everyone in the slum knows Parvez Ahmed, the man who gives small roles to the slum children and pays them Rs.50 for a day’s work and Rs.100 for a night’s work. For 25 years, he has given countless child extras to the movie industry. The work he brings is a source of earning for the children and their families in these impoverished and wasted quarters. Perhaps the youngest extra in Slumdog was two-year-old Ebad Umar Sheikh. When he starred in the movie, he was eight months old, says his mother Najma Umar Sheikh, who begs for a living. She was paid Rs.300 a day for her baby. Azhar and Rubina’s stardom has fuelled the aspirations of the children to become actors and to become famous. Acting may rule the roost for now, but some have dreams untouched by the latest fad for glamour. Mohammed wants to become a scientist. Why? Because they make new things, he replies. The educational prospects of this aspiring scientist, who jumped in that pool of mock excreta for a paltry sum, are on shaky grounds. He is eking out a living, like the rest of the children. When there is no role to be played, he goes to school.

Unruly lawyers started violence, police exceeded limits: Srikrishna

Justice B.N. Srikrishna, retired Supreme Court judge, has blamed lawyers for behaving as “hooligans and miscreants” and provoking the police to resort to a lathicharge on the Madras High Court premises on February 19, and also strongly indicted the police for exceeding the limits in controlling the situation. In his interim report submitted to a three-judge Bench headed by Chief Justice K.G. Balakrishnan, Justice Srikrishna said: “In my view, the circumstances facing the police on the fateful day without doubt justified quelling the unruly and rioting mob of lawyers by use of force, but the police went beyond what was permissible use of force.” The report said: “There is no doubt that the violence was started by the unruly mob of lawyers, some of whom were even dressed in robes and bands, but once the police got into action, there was no stopping them. It was as if the police force, as a body, went berserk. The lathicharge continued irrespective of whether a lawyer was a miscreant or otherwise.” Though the Srikrishna Committee was asked to name the police officers who had given orders for the lathicharge, the report says: “Unless a detailed inquiry is made into the role played by each of the lawyers in the rioting mob as well as each of the constables and/or officers of the police force, it will be difficult

342 to pinpoint the responsibility on the individuals.” Justice Srikrishna said: “The agitated lawyers whom I interviewed were demanding the scalp of the DGP and other senior police officers.” He pointed out that as a result of the Supreme Court order on February 26, four officers were already transferred from Chennai. “As far as the Commissioner of Police [K. Radhakrishnan] is concerned, I do not think that any blame can be laid at his door. He was actually present at the spot only after 17.14 hours.” Justice Srikrishna said: “My view, albeit prima facie, is that the soft-pedalling policy followed by the Madras High Court judges has led to the present piquant situations. The lawyers appear to have been encouraged by the wrong signals sent out and seemed to think that they could do anything and get away within the court premises. Regretfully, far from being the upholders of the rule of law, the lawyers seem to have behaved as hooligans and miscreants.” The incidents that transpired over the last month or so “make it clear that the lawyers seemed to be under the impression that, because they are officers of the court, they are immune from the process of law and that they could get away with any unlawful act without being answerable to the law enforcing agency. It is most unfortunate that the soft policy adopted by the Acting Chief Justice of the Madras High Court and its administration sent out clearly a wrong message that encouraged and emboldened the lawyers into becoming lawbreakers.” Tracing the sequence of events, the report pointed out that a large number of police officers were present in the court apprehending some untoward incident in view of the presence of Janata Party president Subramanian Swamy (in connection with a case). Around 2.20 p.m., some of the accused advocates, who claimed to have come to the B-4 Police Station on the court campus, refused to surrender and allow themselves to be taken into custody, and entered into an argument with the police officers insisting that Dr. Swamy be arrested first, after which alone they could be arrested. This led to a wordy duel. The report said that when the police started pushing the accused advocates into a police van, the mob of lawyers swelled. They started shouting derogatory and provocative slogans and making aggressive gestures at the police. At 5.30 p.m., the unruly mob of lawyers was seen breaking open the police station and setting it on fire. “At this time there appears to have been an order for lathicharge and the policemen are seen chasing the mob with their lathis and charging at them. Once the policemen were given the order to lathicharge the unruly mob of lawyers to quell them, it would appear that the police interpreted it as a licence to unleash mayhem at will. The policemen behaved in the same fashion as the unruly mob of lawyers.” The report said: “The policemen, who undoubtedly had lawful authority to subdue the rioting mob, are seen using force disproportionate to the occasion and even after some of the rioters had actually been overpowered and apprehended. I noticed extensive damage to the court’s properties. The court staff was unanimous that all this damage was inflicted by the policemen.” The report said: “It would be ideal if the Advocates Act is amended to ensure a better disciplinary mechanism of the profession of law, since it affects not only lawyers but also litigants, the administration of justice in the country and finally the rule of law itself.”

Go vote, India Inc tells employees Corporate India, among the worst hit by the 26/11 terrorist attacks in Mumbai, is using the emotional momentum that tragedy generated to get its employees to go out and exercise their franchise. From informal gatherings around water coolers, overflowing with conversations underlining the importance of one’s right to vote, to mailers being sent out to demystify the electoral process, all attempts are being made to encourage employees to cast their votes during the upcoming general elections. FMCG major Hindustan Unilever (HUL) has internally sent out mailers, providing information on the electoral process and detailed FAQs list like how to get registered, what forms to fill up, where to collect voter identity cards, among other things. At informal gatherings and unit head meetings, sources said, employees are being

343 encouraged to do their bit as part of the world’s largest democracy. An official from a leading corporate firm said: “Post 26/11, people have become very vocal about a lot of things. We tell them informally that they should vote if they so firmly believe in what they say.’’ Tata group company Tata Tea, which has been running a brand promotion campaign called ‘Jaago Re’ built around the theme of voter rights for over a year, has been actively taking the campaign to various IT and telecom companies like Infosys, Wipro, TCS and Tata Teleservices. Since IT companies house a large number of employees, the idea is to target a base of young techies. TCS, for instance, is the largest employer with 1.14 lakh employees on its rolls. The ‘Jaago Re’ campaign carries a social message and promotes voter registration. It targets the younger generation of first‐time voters. Said Sushant Dash, associate president, marketing at Tata Tea: “Various IT companies have been approached to create an awakening among the youth on the importance of exercising their right to vote as a means to bring about the change they seek.’’ According to Bangalore‐based NGO Janaagraha, with which Tata Tea has tied up for the campaign, only 10% of the country’s youth votes. The Aditya Birla group will notify its employees on how they could take time out on election day to cast their votes. “That itself will be an encouragement for them to go out and vote,’’ said Santrupt Misra, director (HR & IT), Aditya Birla Management Corporation. Larsen & Toubro chairman A M Naik, however, said: “We will not tell our staff anything like this (to vote). This is a fact that people should know. At L&T, all our staff is educated. There are no illiterates. Unless they are out of town, 95% of our staff votes.’’ Videocon International chairman Venugopal Dhoot said: “We will mail all our staff that they should cast their votes. We will allow employees to take a 4‐hour break any time on election day. If some employees are out of their domicile town, we will give them a day’s off so that they can exercise their voting rights.’’

Foreign Relations:

Hindu families from Pak seek refuge in India Stating that they do not wish to return to Pakistan due to Taliban's tyranny in the tribal areas, a group 35 Hindus, nearly half of them women, from the neighbouring country have crossed over to India and asked the government to allow them to settle in the country. "We were living in Pakistan under extreme fear due to the domination of a strong group of Taliban who are running a parallel government," Jagdish Sharma, a resident of tribal area near Peshawar in Pakistan, said. Recounting their ordeal, he said "Hindus and Sikh families are not safe, especially our women. We preferred to migrate in India, at least here in India we know that our families will be safe." The four families comprising 16 men, 16 women and three children crossed over to India during the last few days through the Attari check post and later went to Delhi where they got a one‐year visa and permission to stay in Amritsar. "We strongly urge the Government of India to allow us to stay here in India permanently, since we don't want to move back in that hell where there is no life security," said Sharma. Hardwari Lal, resident of Orkzai nearly 180 km

344 from Peshawar, said, "I was running my grocery shop there which was forcibly taken over by the fundamentalists who also took possession of our entire property".

Musharraf: let’s move beyond burden of history

Making a pitch for lasting peace, the former Pakistan President, Pervez Musharraf, on Saturday asked the leadership of both India and Pakistan to overcome the burden of history by grasping the fleeting opportunity to resolve key disputes like Kashmir. Calling for an attitudinal change among people and the governments for better relations, he exhorted the two countries to move beyond the burden of history and jointly combat common problems like extremism and terrorism. “We must overcome the burden of history and move forward. The path of peace is the right course to adapt for India, Pakistan, the region and the world,” the retired General Musharraf said. Gen. Musharraf, who ruled Pakistan for nine years, was speaking on “Challenge of Change” at a conclave organised here by India Today.

“Key dispute”

“We have to resolve Kashmir. Kashmir remains a key dispute. The resolution of dispute means give and take.” Linking the festering Kashmir dispute with terrorism, Gen. Musharraf said: “There is an emotional involvement of Pakistan people with the people of Kashmir. Therefore, this has given rise to dozens of freelance Mujahideen groups and increasing militancy in Pakistan society. It certainly needs to be controlled but the task of controlling these groups is very difficult and dispute resolution is the only permanent solution. We must go for it. We have to show the courage to reconcile and compromise. “We should also address the core issues of terrorism and extremism together. We have to have a clear and realistic understanding of the root causes of terrorism. Addressing the root causes of terrorism holds the key,” the former Pakistan President said. “We have to adopt a holistic approach to eliminating terrorism and extremism. We should have the courage and wisdom to write a new chapter in peace and mutually beneficial cooperation. Pakistan can’t be coerced; they can’t live with coercion. India has to show magnanimity and humility. One can’t be a large country with a small heart,” he said. “We must stop meddling in each other and we should start back channel. I stand for peace, for the sake of the whole world which considers our region a nuclear flashpoint. I stand for peace in the South Asian region where progress and development are tied to harmony between India and Pakistan,” he said. “I stand for peace for the sake of our future generations to whom we owe a better life and a better environment.” Pointing to the curse of extremism and terrorism that afflicted both countries, Gen. Musharraf said he had come to India to prove a point that extremists would not be allowed to create obstacles in the path of peace between the countries. “I was advised against coming to India and against the negative reaction of extremists on both sides. I came here to prove a point that extremists must not have their way. Gen. Musharraf accused Indian agencies of fomenting trouble in his country. He claimed that India’s Research and Analysis Wing was helping militants based in Afghanistan to spread trouble in Pakistan. “We have to accept the reality. Your RAW does exactly what the ISI does. My request is let us tackle RAW and ISI stop this confrontation.” He also claimed that the Kashmir issue was not created by Pakistan. “It started in 1947 as a peaceful struggle. It was not started by Pakistan in 1989,” Gen. Musharraf said. He evaded a direct reply to a query on shielding underworld don Dawood Ibrahim in Pakistan as also the presence of terror camps in his country.

345 We don't need your advice: Muslim leader to Musharraf "Indian Muslims are capable of solving their problems... We don't need your advice... Don't try to alienate Indian Muslims by your remarks, here or in Pakistan." This blunt message was conveyed to former Pakistan President Pervez Musharraf by a prominent Muslim leader Mehmood Madani at a function in India. Madani, member of Rajya Sabha and leader of Jamat‐e‐ Ulema‐i‐Hind, made it clear to the Pakistani leader that he or his country need not bother about the condition of Muslims in India. "Don't start your politics of Pakistan from here," Madani told Musharraf after the latter claimed that Muslims in India were alienated and suggested that this was one of the reasons for terrorism here. Virtually retorting the former Pakistani military ruler, Madani said, "Pakistan ki jitni total population hai , us se zyada population hai Indian Muslims ki . (Population of Muslims in India is more than that total population of Pakistan). You should be knowing this." When Musharraf said he was aware of it, Madani said "If you know this, then you should also know that Indian Muslims have the capability to solve their problems. We don't need your advice. Don't try to alienate Indian Muslims by your remarks, here or in Pakistan."

CISF commandos to protect Indian diplomats in Pak

The Government has sent a special unit of trained commandos to Pakistan to protect top diplomats of the Indian Embassy there. The batch of 16 personnel, trained in commando skills and unarmed combat, from the Central Industrial Security Force (CISF) was sent to the neighbouring country last month. "They will perform VIP security duties after assessing the situation there," CISF Director General N R Das told reporters here on the sidelines of the force's 40th raising day. The team includes few drivers who are trained in VIP security drills. Das said the security of the Indian Embassy is looked after by the Pakistan government. The actual role of the CISF commandos would be finalised after an assessment report is prepared. Some of the members of the team will also perform technical support duties. The CISF commandos protect diplomats at the Indian Embassy in Kathmandu while the ITBP earlier guarded the Indian Embassy officials in Afghanistan.

CCS reviews situation

Prime Minister Manmohan Singh on Thursday reviewed the situation in Pakistan in the wake of political instability prevailing there.At a meeting of the Cabinet Committee on Security (CCS), which Dr. Singh chaired for the first time since his surgery in January, the implications of the situation in Pakistan were assessed. The meeting was also attended by External Affairs Minister Pranab Mukherjee, Defence Minister A.K. Antony and Home Minister P. Chidambaram. Mr. Mukherjee described the developments in Pakistan as its “internal matter,” but added that India wanted to see the government in the neighbouring country stable so that it could tackle terrorism emanating from there. “We do hope these issues will be resolved by their own system and by their own mechanism,” the External Affairs Minister told journalists after the CCS meeting. “Pakistan is an important neighbour. I hope that all [its] internal matters will be resolved by its leadership amicably and peacefully, in its best interests,” he said. “It is for the

346 people of Pakistan and the authorities to decide how they resolve their own internal problem.” He stressed that India had always been interested in seeing strong and stable regimes, more so in its neighbourhood, so that the entire region could grow and develop together, for the common good of its people.

BUSINESS AND POLITICS IN THE MUSLIM WORLD

ASIA REPORT

March 25, 2009

Nadia Tasleem: Report on Asia 367

Ashia Rehman: Report on Fertile Crescent 375

Madiha Kaukub: Report on GCC 441

Tatheer Zehra: Report on South East Asia 479

Sadia Khanum: Report on India 577

347

BUSINESS AND POLITICS IN THE MUSLIM WORLD

India & East Asia and GCC & Fertile Crescent

Nadia Tasleem

Weekly Report from 14 March 2009 to 20 March 2009

Presentation: 25 March 2009

This report is based on the review of news items focusing on political, economic, social and geo‐ strategic developments in various regions namely; India, East Asia, GCC and Fertile Crescent from 14 March 2009 to 20 March 2009 as have been collected by interns. Summary

India:

Political Front:

One of the most significant developments regarding seat sharing among various political parties has taken place in Bihar; where Lalu Prasad (RJD) and Ramvilas Paswan (LJP) have announced their seat sharing for Lok Saba polls. They have divided 37 seats among them and have left just 3 seats out of 40 for their major ally Congress. This announcement has been declared as shocking for main stream leadership of the Congress; however its outcomes have yet to be seen. Meanwhile Mayawati has announced to contest elections at her own without joining any major alliance. Besides that anti‐Muslim speeches made by a BJP contestant in UP, Varun Gandhi, brought strong condemnation for him by various parties. Ultimately Court’s decision has barred

348 him from contesting elections. During election campaigns BJP has launched its ‘IT Vision’ document that is based on the idea of ‘Governance at people’s door step’. Lastly, Presidential rule has been imposed in Meghalaya on the ground of maintenance of law & order. Political parties within the region however have called it ‘un‐constitutional’. In the meantime Chief Minister of Jammu and Kashmir, Omar Abdullah, has promised to end the Armed Forces Special Powers Act (AFSPA) during his tenure.

To address Pakistan's queries regarding Mumbai attack, India gave textual response of a few pages followed by five compact discs and over 400 pages of primary documentation. With all this India demanded tangible action by Pakistan to complete investigations. Pakistani FIA has started close monitoring of Indian reports.

Geo‐strategic Front:

The Indian Navy has drawn up ambitious plans of indigenously designing and constructing warships and is building seven ships in the country’s ship building yards. Meanwhile Indian Chief of Air Staff assured that MiG‐29 aircrafts, being used by Indian Air force are safe, amidst Russian claims to ground these aircrafts on the basis of internal defects. India has asked Srilanka to resolve Tamil issue by negotiations. Meanwhile the US has reiterated its comitment to enhance ties with India. US also asked India to de‐escalate on borders with Pakistan. Lastly Pranab Mukherjee appreciated Pakistani keenness for democracy however added that strong institutions need to be built in the country for true democracy.

Social Front:

A recent report by the National Human Rights Commission (NHRC) claims that Uttar Pradesh has topped the list of states with maximum number of complaints relating to human rights violation and New Delhi follows a close second. Other states have also filed complaints of human rights violation. However, the Commission did not receive a single complaint of human rights violation from Lakshadweep.

Economic Front:

According to the IMF forecast, India's gross domestic product growth would slow to 6.3% in the 2008‐2009 fiscal years, ending in March, and to 5.3% the following year. Meanwhile according to a survey, the corporate sector claimed that the period of downturn in the Indian economy will continue till May 2010 before bouncing back in response to the fiscal and monetary policy stimulus and abatement of recession in the international economy. Inflation has also reached at

349 its lowest level ever in the country. The Centre for Monitoring Indian Economy (CMIE) however still seems optimist as according to it India's real GDP is projected to grow by seven per cent in financial year 2010.

East Asia:

Political Front:

Parliamentary elections in Indonesia are due to be held on April 9 that would be contested by more than 11000 candidates from 44 political parties. All parties therefore have started political campaigns. Yudhoyono’s party i.e. People’s Democratic Party, seems hopeful to win along with their likely coalition partners i.e. Indonesian Democratic Party of Struggle (PDI‐P) and the Golkar Party. Indonesian polls also evince popularity of President Yudhoyono. Lastly, one of the founders and leading figures of the Free Papua Movement (OPM), held meeting with Coordinating Minister for People's Welfare, to help ending more than 40 years of hostility between the country and the separatist group. Transfer of power by elections seems to be an important issue in Malaysia. Many analysts reiterate the fact that Barisan National seize to enjoy popular support yet they are optimist regarding its chance to restore image by taking public voice into consideration. After two days of talks with a group of former separatist guerrillas officials claimed that Philippines is open to amend a law in order to create a Muslim autonomous region on a restive southern island. The anti‐government group, United Front of Democracy against Dictatorship's (UDD) in Philippines, has announced to hold another mass rally around the Government House on March 29. Meanwhile amid the ongoing no‐confidence debate, a group of Thai anti‐government protesters staged a rally at the Democrat Party's headquarters in Bangkok.

Geo‐strategic Front:

Hillary Clinton’s visit to Indonesia has been considered as a major development by many within the country. Vietnam protested against a bill signed into law in the Philippines, saying that it lays claim to parts of the disputed Spratlys Islands in the South China Sea; and asked her to maintain peace and stability in the region.

Social Front:

A strong 6.0‐magnitude earthquake struck in the ocean between the Indonesia and Philippines. The Selangor Islamic Religious Council (MAIS) in Malaysia has decided to take legal action against the Malaysian Bar Council for using the word "Allah" in a poll published in its website.

350 Previously MAIS also banned the song Allah Peduli by Indonesian singer Agnes Monica. Kidnapping in Mindanao has become a serious source of concern for government of Philippines and for OIC as well. At Thai social front two potent developments came into notice. A new group calling itself the Al‐Qaeda in South‐East Asia has tried to mobilize support from the region for jihad in Pattani, where insurgents continue to battle the Thai government in the Muslim‐ majority south. Meanwhile drought has affected Thailand's 39 provinces and over 4 million people in 12,517 villages. At least 10 people were killed when a bus carrying mostly Russian tourists plunged off a cliff in southern Vietnam. In Brunei the delay by local Islamic Bank institution in submitting the Zakkat to relevant authorities were the main reason for the significantly poor Zakkat contributions which has prompted the Ministry of Religious Affairs to launch an investigation to the matter.

Economic Front:

US president Barack Obama has discussed the global economic crisis with Indonesian president Susilo Bambang Yudhoyono. Japanese carmaker Honda said that it was confident of increasing sales in Malaysia this year, one of the rare regional markets to cash the downtrend amid the global economic gloom. Thailand's prime minister said that the world's largest countries must maintain spending commitments and coordinate their fiscal and monetary policies to combat a worsening economic downturn. Meanwhile he declared US and Europe to be key trade markets for his country. A Reuters Poll said that Singapore will be Southeast Asia's weakest economy, shrinking nearly 5 per cent this year. In the meantime Singapore shares closed 1.72 per cent lower after the government said exports fell by 24 per cent in February, further confirming the bleak economic outlook. Vietnam has attracted foreign direct investment pledges of 5.3 billion dollars so far this year, down 30 per cent from the same period last year. All the while between 300,000 and 400,000 people are likely to lose their jobs in Vietnam this year, and some 6,000 Vietnamese workers have already been sent home from abroad due to the global slowdown. The current global financial turmoil has minimal impact on the trade in gold and silver products in Laos as these two precious metal products are not export oriented.

Fertile Crescent:

Political Front:

A national reconciliation conference has recently been held in Iraq at the Baghdad‐based Conferences Palace with the participation of the minister of state for national reconciliation affairs and several parliamentarians. Two other significant developments at political front include Iraqi PM’s denial of any chances to make alliance with Baath Party and President’s urge to PKK to lay down arms in order to bring stability in the region. In Lebanon, leader of the Free

351 Patriotic Movement General Michel Aoun's accused ruling party of paying for transporting Lebanese expatriates to vote in the upcoming elections. The ruling majority however has discovered that infact Aoun's party has started putting efforts to develop contact with expatriates in order to bring them back home, just for elections. This development can be linked with recently launched political campaigns by various parties for upcoming parliamentary elections. Tarek El‐Zomor, member of the Jihad organization in Egypt and allegedly one of late president Anwar Sadat’s assassins, has recently demanded moral compensation to salvage his image in society after being imprisoned for his involvement in the 1981 parade shooting. Egypt has announced to open its Rafah border with the Gaza Strip for two days, so students and the sick can cross. Meanwhile Egyptian Foreign Minster also voiced concern for Middle East peace hopes after an ultra‐nationalist party signed up to be part of Israel's new government. At the same time Palestinian unity talks in Cairo were deadlocked after factions failed to agree on the composition and obligations of a unity government. Israeli and Palestinian lawmakers failed to agree on a draft joint declaration aimed at promoting cooperation, peace and reconciliation, at a meeting with European parliamentarians in Paris. Israeli Prime Minister‐designate Benjamin Netanyahu has made initial agreements with Yisrael Beiteinu as an effort to form coalition government. The Muslim Brotherhood in Jordan has recently called for "a serious and honest dialogue” amongst all political actors regarding political reform in the Kingdom. Elections at the Jordan Bar Association (JBA) ended with a surprise victory for independent Ahmad Tbeishat who managed to beat his Islamist and nationalist rivals.

Geo‐strategic Front:

Arab League Secretary General Amr Moussa during his visit to Iraq said that the interest and stability of Iraq lies in two main things; overcoming sectarianism and the withdrawal of foreign troops from Iraq. Meanwhile Iraqi President asked Arab countries to open embassies in Iraq. Iraq also seems keen to boost ties with Washington, Italy and Korea. Moving towards Lebanese geo‐ strategic front the most significant development is that HezbAllah spokesman Ibrahim Moussawi has been denied a visa to visit Britain, despite initial news reports indicating that he had been granted permission to enter the county. It is generally assumed that the Conservative opposition called for him to be refused entry to the country because of anti‐Semitic comments he is alleged to have made. Meanwhile US unhappiness with Britain's decision to go ahead with HezbAllah can be yet another potent factor in this regard. In the meantime Saudi Arabia's top diplomat has recently urged Iran to stay out of internal Arab disputes, particularly in Lebanon and among the Palestinians. Lebanon's president has accused Israel of continually violating its nation's territory. Syrian President told an Italian TV channel that former Israeli Prime Minister Ehud Olmert agreed to withdraw from all of the Golan Heights during indirect peace talks with Damascus. He further added that if new regime follows same path then peace with Israel would be considerable. All the while Syrian President Bashar al‐Assad said he hoped to meet U.S. President Barack Obama and expressed his willingness to help mediate between the West and

352 Iran. A delegation of British politicians pressing their government to hold direct talks with Hamas has met with the Palestinian group's exiled leader, Khaled Mashaal, in Syria. Jordan seems keen to boost ties with Canada, South Korea, Sudan and Egypt. Above all a Lebanese flag flew over Beirut, hoisted atop the first‐ever Lebanese Embassy in Damascus.

Social Front:

Prince Hassan of Jordan has called for reviving the tradition of Waqf (religious endowment) for education in order to support research and critical thinking in the Arab world. Corruption has been regarded as main drawback in Syrian society.

Economic Front:

The Trade Ministry of Iraq has signed several deals with Iran for the purchase of a wide range of goods. The deals are expected to propel value of imports from Iran to nearly $5 billion. Meanwhile Australia has announced to supply Iraq with four million tons of wheat a year that will cost Iraq more than 400 million dollars hence would be the largest by Iraq with one single country. The World Bank granted $4 million to Lebanon to implement administrative reforms at the Finance Ministry aimed at improving the management of funds and resources. Egypt has seen a wave of labour strikes in recent weeks by workers in a range of professions from lawyers to truck drivers. Although strikers' specific demands vary, commentators generally attribute the phenomenon to increasingly difficult economic circumstances.

GCC:

Political Front:

While condemning the new wave of violence against expatriates a leading Bahraini opposition scholar called upon the protesting youths to use peaceful ways for demanding more political rights rather than indulging in acts of violence. The small emirate of Kuwait witnessed a blow to its struggling democracy when the ruler of the oil‐rich nation decided to disband the parliament last week, proving that the implementation of a Western‐style democracy in a Persian Gulf region dominated by feudal mentalities remains a challenge. The decision to dissolve the legislature for the second time in less than a year and call for early elections in two months was the result of an ongoing political crisis between the legislative powers and the Cabinet, at a time when the nation is facing the woes of the economic crisis and falling oil prices.

Geo‐strategic Front:

353 The U.S. president recently discussed the economic crisis and the upcoming Group of 20‐ summit of developed and developing nations with King Abdullah of Saudi Arabia. King Abdullah also held wide‐ranging talks with Iranian Foreign Minister Manouchehr Mottaki, who made an unannounced visit to Riyadh, last week. From Saudi Arabia, Iranian FM also paid visit to UAE. Just according to agreement between UAE President Sheikh Khalifa bin Zayed al Nahyan (right) and his French counterpart Nicolas Sarkozy, France would soon open its military base in Abu Dhabi. Kazakhstan has been declared as an important partner of UAE in terms of its political as well as economic ties with her. UAE also seem keen to boost ties with Malaysia. Bahriani Prime Minister Sheikh Khalifa bin Salman al‐Khalifa told Mottaki that nothing can damage Tehran‐ Manama ties. Kuwait is looking forward to develop nuclear cooperation with France. Oman enjoys cordial ties with Singapore and Tunisia.

Social Front:

The Arab League and Qatar have both rejected a request from the International Criminal Court (ICC) to execute an arrest warrant against Sudanese president Omer Hassan Al‐Bashir. In a recent statement Saudi Interior Minister denied that Shiite pilgrims were specially targeted by security forces in the ultra‐conservative Sunni kingdom last month. Meanwhile a Saudi man has filed a formal complaint against the kingdom's ultraconservative religious police in another sign of mounting frustration directed at Saudi Arabia's powerful religious authorities. The UAE has the largest number of date palm trees among the countries of the world with 42 million trees hence has again been included in Guinness Book of World record.

Economic Front:

The trade within the GCC has been increasing. Hence it is assumed that the GCC monetary union would soon be the second largest (in terms of combined GDP) in the world. In this regard a recent study by the Middle East Economic Survey (MEES), a Cyprus‐based economic publication, said while Saudi Arabia accounts for 52 per cent of the GDP of the GCC, UAE accounts for 22 per cent. Kuwait and Oman, which are expected to initially opt out of the monetary union, account for 12 per cent and 6 per cent, respectively, of the total GDP of the region. Saudi King has expressed high hopes regarding his Kingdom’s economic capabilities. Chairman of the Sharjah Commerce and Tourism Development Authority (SCTDA) claimed that the UAE has one of the world's most successful models in the tourism sector, and Sharjah has been always committed to making a significant contribution to the UAE's growth in the tourism sector. Meanwhile the UAE earned around $6 billion from oil exports in the first two months of 2009. Prudent economic policies made by Bahrainian government have saved her from being much effected by ongoing economic decline. In case of Oman inflation has dropped remarkably.

354

BUSINESS AND POLITICS IN THE MUSLIM WORLD

REPORT ON FERTILE CRESENT

Aisha Rehman

March 25, 2009

IRAQ

Political front

• Talabani hopes PKK will lay down arms • Talabani meets Amr Moussa • Presidential divan denies returning budget law to parliament • Baath can never be political partner, says PM • VP says Iraq could play role in stabilizing region • National reconciliation conference launched in Baghdad

Geo strategic front

• EU foreign policy chief, Barazani meet on European support • VP urges AL, Arab countries to handle pending issues • Overcoming sectarianism, troops’ withdrawal key for Iraq’s stability – Moussa • Talabani urges Arabs to open embassies • Pentagon: No surprise Iran using UAV over Iraq • Committees to be formed to activate Iraqi‐Arab diplomacy – Moussa • Amr Moussa will not visit Kurdistan as Barzani absent – official • AL chief stresses support for Iraqi political process • Burham Saleh calls for fostering economic cooperation with Washington

355 • FM calls for boosting Iraqi‐Korean relations • Zebari meets former Italian foreign minister

Economic front

• Iraq’s hard cash reserves estimated at more than $70 billion, minister says • Trade Ministry signs deals to expand imports from Iran • Iraq to purchase 4 million tons of wheat from Australia • French contribution to Iraqi power stations in ministry meeting • Deputy FM, British official take up reconstruction, relations • Government rejects demands for further funding • MP demands government to improve investments by amending laws • 7 billion ID for reclamation of 15,000 donums in Babel • Provinces’ urban designs sent to investment commissions – ministry • Parliamentary committee working on revising investment act – MP • Agricultural initiative loans reach 200 billion ID • Senior MP visits Japan over investment Social front

LEBANON

Political front

• Outraged Lahoud tells Aoun: Stop misleading the Lebanese • Lebanon's 2009 elections: Is Aoun crying wolf ? • Lebanon's March 14 alliance launches its 2009 election campaign

Geo strategic front

• Britain bars Hizbullah spokesman from entry: US shows discontent over UK's contact with party • Saudi Arabia urges Iran to stay out of Lebanon, Palestine • Lebanon President accuses Israel of continued violations • Fneish, Filipino envoy discuss need to protect workers • Saudi ambassador to Pakistan to take Lebanon post • Hariri: Syria-Israel peace would benefit Lebanese

Social front

• Italy Funds Project To Boost Gender Equality In Education

Economic front

• Lebanese cell operators deny curtailing phone-card supplies • Beirut has 33rd highest office occupancy cost in the world

356 • Lebanon swaps $2.1 billion in eurobonds to finance debt • Lebanon finance ministry gets $4 million grant for reforms • Harb seeks to grill tabourian over 'mismanagement' of energy, water • Uae red crescent to help build shelters for refugees • Lebanese finance ministry's 8th progress report on the paris iii donors conference • Lebanese government aims to reduce 'public-debt-to-gdp ratio' • Lebanon cuts delayed-tax fines by 90 percent • Microsoft launches small business initiative for lebanese entrepreneurs, bizspark • Iraqi embassy in beirut promotes shopping center

EGYPT

Political front

• Zomor Calls For Moral Compensation • Government Appeal On Gas Exports Verdict Adjourned Till April

Geo strategic front

• Sudan Chose To Resist, Says Ambassador • Egypt To Open Border With Gaza For Two Days • Egypt Concerned About Future Israeli Government • Palestinian Unity Talks In Cairo Hit Deadlock • British National Claims He Was Tortured In Egypt, Says The Guardian • Us Aid Cut Result Of Conditions Rejected By Egypt, Says Presidential Spokesman • Egypt Reopens Border With Gaza For Two Days

Economic front

• Egyptian economic growth set to slow • Egypt: Labour Strikes Point to Economic Pain • Business Beat: A Look At Green Car Technology In Egypt • One On One: Gm Egypt Goes For A Bigger Piece Of The Pie Social front

• Hamas Members Stopped From Smuggling Cash To Gaza

ISRAEL AND PALESTINE

357 Political front

• Israeli, PA lawmakers can't agree on peace declaration • • Barak: Labor must 'seriously consider' Likud coalition offer • Israel rejects revised draft of Durban II statement • Likud and Yisrael Beiteinu initial coalition deal • Hamas and Fatah agree to hold elections by January 2010 • Imprisoned Fatah and Hamas leaders stress need for success of internal talks • Al Ahmad: No agreement on political agenda of unity government • Barhoum: Factions agree on transitional unity government • Internal talks approach an agreement • Factions agree to hold elections by January 25, 2010 • New group in Israel vows to target released detainees • Palestinian unity talks failing

Economic front

Geo strategic front

• Assad: Olmert agreed to give up all of the Golan • Palestinian delegates leave Cairo without resolving all major issues • Egypt says it detained Hamas officials concealing money at Rafah terminal • Syrian president says peace with Israel still possible Social front

JORDAN

Political front

• Ahmad Tbeishat elected president of Jordan Bar Association • Muslim Brotherhood calls for political dialogue • Committee formed to draft Red‐Dead Canal law Geo strategic front

• 'Majali to take over presidency of Euro‐Med Parliamentary Assembly’ • Ban on Chinese dairy products extended • 'Canadian parliament likely to okay FTA’ • S. Korea PM due in Kingdom today • Kingdom seeks renewal of agriculture deal with Sudan • Egyptian officials invited to discuss ‘worries’ over canal Economic front

• 67 per cent of projects lured in four years did actual business – survey • Financial closure deadline likely to be extended • Revolving credit fund to finance tourism‐related projects

358 Social front

• Prince Hassan calls for reviving tradition of waqf for education • Labour Ministry, private sector work to address nursing sector unemployment • Jordan engineers invite public to buy ‘Gaza reconstruction shares’ • Interpol, PSD officer ‘to take part in Syria murder probe’ • Ministry to launch nationwide mental health strategy • 'Jordan’s national early childhood development strategy successful’ • Unemployment fund included in proposed SSC law – official SYRIA

Political front

Geo strategic front

• Syria's Assad praises Obama, wants meeting • European lawmakers meet Hamas leader in Syria • British politicians meet Hamas leader in Syria • Lebanese PM Recognizes Syria's Key Role in the Region • MIDEAST: Israel and Syria Step Closer • Assad ready to mediate with Iran • Assad: US could mediate Syria‐Israel talks • Saudi king breaks ice with Assad • First Lebanese Embassy Opens In Syria Economic front

• Syria opens Damascus Securities Exchange Social front

• Corruption remains sky‐high in Syria

Iraq

Political front

Talabani hopes PKK will lay down arms

Iraqi President Jalal al-Talabani has expressed his hope that Kurdistan Workers Party (PKK) fighters will respond to an upcoming appeal to lay down arms, the Hurriyet Daily News said on Wednesday. “The terror organization PKK is expected to heed a forthcoming appeal to lay down their arms, Talabani also said in remarks published Wednesday,” according to the Turkish newspaper. “I believe the PKK will accept the wishes of all Kurdish parties; laying down arms and bringing an end to the violence,” the

359 newspaper quoted Talabani, himself a Kurd, as telling the Sabah daily. “It will be an important step. I hope Turkey would later take measures to persuade them to return from the mountains,” Talabani noted. “The terrorists, however, are not expected to disband the PKK, Talabani told the daily.” “‘I do not think they are ready for that at present,’ he said.”

Talabani meets Amr Moussa

Iraq’s President Jalal Talabani received Arab League Secretary General Amr Moussa Thursday at his premises in Sulaimaniya, according to a media source. “The two officials held a meeting attended by Kurdish Prime Minister Negervan Barzani,” the source told Aswat al-Iraq news agency, noting a joint press conference will be held after the meeting. Moussa had visited Najaf today where he met with top Shiite cleric Sayyid Ali al-Sistani. On Monday (March 16), Moussa arrived in Iraq and met with Deputy Prime Minister Burham Saleh, Defense Minister Abdelqadir Mohammed Jassem, Interior Minister Jawad al-Bulani, and Minister of State for Foreign Affairs Mohammed al-Dulaymi.

Presidential divan denies returning budget law to parliament

Iraq’s presidential divan said that the presidency did not return the 2009 budget law to the Iraqi Parliament, according to the state-run al-Iraqia channel. Some media sources had reported on Wednesday (Mar. 18) that the presidential council returned the budget law to the parliament. On March 5, the Iraqi Parliament approved a cut of 5 trillion Iraqi dinars, or around $4.3 billion, off the general budget, which was brought down to $58 billion.

Baath can never be political partner, says PM

Iraqi Prime Minister Nouri al-Maliki said the dissolved Baath Party can never be a partner in the country’s political process, adding the Iraqi people should not be alarmed or concerned. “There were some mass media that attributed statements to the prime minister he did not give,” according to a statement by Maliki’s office clarifying his position on Baath as received by Aswat al-Iraq news agency. The statement pointed out that the Baath had forced many Iraqis to join it. “We draw a line between those who were forced to join it under pressure and those who believed in its racist and sectarian ideologies. Based on this, we reiterate our call for those people forced to join Baath to return to the nation as citizens, not as members of the dismantled Baath,” it noted.

VP says Iraq could play role in stabilizing region

Iraqi Vice President, Adel Abdul Mahdi, said on Tuesday that Iraq could play an important role in achieving stability and balance in the region, according to a statement released by his media office. This came during his meeting with former foreign minister, Gianni De Michelis, in Baghdad. “The two officials discussed during the meeting, attended by the Italian ambassador in Baghdad, the latest political and security developments in Iraq,” said the statement received by Aswat al-Iraq news agency.

360 For his part, the Italian official expressed happiness over visiting Iraq, pointing out the important role played by Iraq in stabilizing the Middle East region. He voiced his country’s readiness to support the democratic operation in Iraq and to include Iraq in the Union for the Mediterranean (UFM).

National reconciliation conference launched in Baghdad

A national reconciliation conference on Monday was held at the Baghdad-based Conferences Palace with the participation of the minister of state for national reconciliation affairs and several parliamentarians. “The conference was held this morning under the auspices of the International Institute for Sustained Dialogue (IISD) and an Italian institute,” an MP from the United Iraqi Alliance (UIA), Abbas al-Bayati, told Aswat al-Iraq news agency. The conference is the fifth of its kind following meetings in Beirut, Amman, Istanbul, and Washington.

Geo strategic front

EU foreign policy chief, Barazani meet on European support

President of Iraq’s Kurdistan region Massoud al-Barazani is scheduled to meet with the High Representative for the European Common, Foreign and Security Policy, Javier Solana, in Brussels to discuss European support for the Iraqi political process. “The two officials will discuss the current situation in Iraq and the Kurdistan region and the European role…,” a senior Kurdish official, Fouad Hussein, said in a press release received by Aswat al-Iraq news agency. The Kurdish Khabat newspaper, a mouthpiece of the Kurdistan Democratic Party (KDP) which is led by Barazani, said in its today’s issue that Barazani’s visit to Brussels as part of his European tour aims to garner international support for the Iraqi political process and to encourage foreign companies to invest in Iraq, particularly in the Kurdistan region. Barazani began his European tour on February 23, 2009, during which he visited Britain, Germany and Italy.

VP urges AL, Arab countries to handle pending issues

Iraqi Vice President Tareq al-Hashemi called on the Arab League and Arab countries to deal with the unresolved issues that Iraq is still unable to handle. During a joint press conference with Secretary General of the Arab League Amr Moussa, Hashemi said that many pending issues, including the interference in Iraq’s domestic affairs, need to be addressed by the Arab organization. The 2005 Cairo Declaration has laid down the foundations of a genuine reconciliation among Iraqis, according to a statement released by Hashemi’s office and received. Hashemi has expressed his appreciation for the Arab League’s role and interest in Iraqi affairs. On Monday (March 16), Moussa arrived in Iraq and met with Deputy Prime Minister Burham Saleh, Defense Minister Abdelqadir Mohammed Jassem, Interior Minister Jawad al-Bulani, and Minister of State for Foreign Affairs Mohammed al-Dulaymi.

361 Overcoming sectarianism, troops’ withdrawal key for Iraq’s stability – Moussa

Arab League Secretary General Amr Moussa said in Baghdad that the interest and stability of Iraq lies in two main things; overcoming sectarianism and the withdrawal of foreign troops from Iraq. Speaking at a press conference after having met with top Shiite cleric Sayyid Ali al-Sistani in Najaf, Moussa said “we discussed several issues, mainly the president and the future of Iraq and its role in the Arab and Islamic worlds.” Responding to a question from an Aswat al-Iraq news agency correspondent regarding whether the Iranian role in Iraq and the Arab-Iranian relations were discussed during the meeting, Moussa said, “We have not tackled these issues. There is a tension in the Arab- Iranian relations, but there are many officials who demand to discuss this issue and differences between Arabs and Iranian because as a principle, we are neighbors and brothers and should not be enemies.” He called for overcoming sectarianism which cause chaos in the country, highlighting the importance of the withdrawal of foreign troops from Iraq. Another question from Aswat al-Iraq news agency on the Baathists and their return to the political life, the Arab diploma said “I listened to the suggestions presented by Iraqi officials regarding the Baathists and there is a significant shift from an orientation to uproot the Baath, to another to attract it.” He considered it an internal Iraqi affair and should be handled within this framework.

Talabani urges Arabs to open embassies

Arab League Secretary General Amr Moussa said that the issue of reconciliation figured high on the agenda of his talks with Iraqi President Jalal Talabani, who called on Arab countries to come to Iraq and open their embassies there. “The great development I have seen in Sulaimaniya was amazing and I really congratulate President Talabani over that. We have reviewed a host of issues including national reconciliation and Iraqi national accordance,” Moussa said during a joint press conference he held with the Iraqi president after their meeting in the Kurdish city of Sulaimaniya. Talabani, for his part, said he appreciates the role played by the Arab League and its secretary general, Moussa, in support for Iraq and its march.

Pentagon: No surprise Iran using UAV over Iraq

An Iranian unmanned aircraft shot down by the U.S. military over Iraq was operating illegally and unsafely, but its presence should not come as a shock, a Pentagon spokesman said Tuesday. “The drone shot down last month was the first of its kind discovered over Iraq,” the Navy Times newspaper quoted Pentagon spokesman Geoff Morrell as saying. He would not speculate on what the drone was looking at. U.S. jets shot down the Iranian surveillance aircraft about 60 miles northeast of Baghdad, the U.S. military said. That puts the drone well inside Iraq’s borders.

Committees to be formed to activate Iraqi­Arab diplomacy – Moussa

Arab League Secretary General Amr Moussa said that he agreed with Iraqi officials to form committees to activate the Iraqi-Arab diplomacy. This came during a meeting with

362 Deputy Prime Minister Rafeaa al-Eissawi, attended by Foreign Minister Hoshyar Zebari and Higher Education Minister Abd Ziyab al-Ujeili as well as a number of senior Iraqi officials, according to a statement released from al-Eissawi’s media office on Wednesday received by Aswat al-Iraq news agency. “Moussa declared at the joint press conference after the meeting that the AL is resolved to hold its next conference in Baghdad in 2010 under Iraq’s chairmanship.” The statement added. “We have agreed with Iraqi officials to form a group of political and technical committees to activate the Iraqi-Arab diplomacy and to map ou the Arab strategy ti support development in Iraq,” Moussa said.

Moussa arrived in Baghdad on Monday evening (Mar. 16) and was received by Zebari at Baghdad airport. His visit was aimed at strengthening the Arab presence in Iraq. He held meeting with Prime Minister Nouri al-Maliki, Foreign minister Hoshyar Zebari, Defence Minister Abdul Qader Mohamed Jassem and Interior Minister Jawad al-Boulani.

Amr Moussa will not visit Kurdistan as Barzani absent – official

The Arab League Secretary General, Amr Moussa, will not visit Iraq’s Kurdistan region with the absence of President Massoud Barzani, who is in a foreign tour, the official of the foreign relations of the Kurdish government said. “Moussa will not visit Iraq’s Kurdistan region because the visit’s demands, presented by the Arab League through its envoy in Baghdad and the Iraqi Foreign Ministry, came while President Barzani was on a foreign tour,” Falah Mustafa told Aswat al-Iraq news agency. Kurdish President Massoud Barazani started a European tour on February 23. On Monday (March 16) evening, Moussa arrived in Iraq and met with Deputy Prime Minister Burham Saleh, Defense Minister Abdelqadir Mohammed Jassem, Interior Minister Jawad al-Bulani and Minister of State for Foreign Affairs Mohammed al-Dulaymi.

AL chief stresses support for Iraqi political process

Secretary General of the Arab League Amr Moussa on Tuesday stressed his support for the political process in Iraq, highlighting the progress that Iraq has made towards a stable state. “We hope that this progress will continue…,” Moussa said today in a joint press conference with Iraqi Foreign Minister Hoshyar Zibari in Baghdad. Commenting on the scheduled withdrawal of U.S. troops from Iraq, Moussa said that Iraq should be ready to take over full security responsibilities from the coalition forces. On Monday (March 16) evening, Moussa arrived in Iraq and met with Deputy Prime Minister Burham Saleh, Defense Minister Abdelqadir Mohammed Jassem, Interior Minister Jawad al-Bulani and Minister of State for Foreign Affairs Mohammed al-Dulaymi.

Burham Saleh calls for fostering economic cooperation with Washington

Iraqi Deputy Prime Minister, Burham Saleh, discussed with the individual responsible for economic affairs at the U.S. embassy in Baghdad ways of fostering economic cooperation between the two countries, according to a source from the council of ministers. “Saleh discussed with Marc Wool, the person responsible for economic affairs at the U.S. embassy in Baghdad, and his accompanying delegation means to foster trade cooperation

363 between the two sides and to encourage investment and develop the Iraqi economy,” the source told Aswat al-Iraq news agency. “The two sides also discussed the joint action to implement the security agreement’s articles,” he added.

FM calls for boosting Iraqi­Korean relations

Iraqi Foreign Minister, Hoshyar Zebari, on Monday said that the Iraqi-Korean relations developed in economic and investment fields, calling to deepen ties for the good of the two people, said a Foreign Ministry’s statement. “The minister received the copy of credentials of the new South Korean ambassador in Baghdad,” said the statement received by Aswat al-Iraq news agency. “The minister welcomed the new ambassador, expressing the Iraqi government’s readiness to facilitate his mission in the country,” the statement added. “The diplomat voiced happiness to work in Iraq and conveyed the South Korean minister’s greetings to Zebari, asserting he would do his utmost for the development of ties between the two countries,” he noted.

Zebari meets former Italian foreign minister

Iraqi Foreign Minister, Hoshyar Zebari, on Monday discussed during his meeting with former Italian foreign minister the latest political developments, according to a statement from the Foreign Ministry. “Zebari reviewed the latest political developments in Iraq during his meeting with former Italian foreign minister and European parliament member, Gianni de Michelis, who is visiting Iraq to take part in the reconciliation forum, held under the auspices of the European Union and supported by the Italian government,” said the statement received by Aswat al-Iraq news agency. “Visits made by several Iraqi officials to different countries and visits made by Arab and foreign officials to Iraq indicate that Iraq is open to the Arab, Islamic and international world,” Zebari said.

Economic front

Iraq’s hard cash reserves estimated at more than $70 billion, minister says

Iraq could stash away up to $70 billion dollars from its oil sales in the past two years, Finance Minister Baqer Jaber Solagh said. The minister said the money was saved when oil prices surged and hovered at $150 for several months. Iraq’s exports have averaged 1.9 million barrels a day and despite the sharp drop in prices recently the country is working hard to boost output and exports. He said Iraq has hard cash deposits of about $44 billion in the Central Bank and up to $30 billion in a fund the finance ministry administers. The minister made the remarks in response to reports that Iraq was facing a severe financial crisis due to the drop in oil prices. “Our conditions would have been similar to other oil‐producing countries such as Venezuela if we had not set this money aside,” the minister said. Oil revenues make up 94% of Iraq’s hard cash revenues.

Trade Ministry signs deals to expand imports from Iran

364 The Trade Ministry says it has signed several deals with Iran for the purchase of a wide range of goods. The deals are expected to propel value of imports from Iran to nearly $5 billion, a statement by the ministry said. Most of these imports will be destined to the state‐run shopping centers which have almost turned into stores for Iranian goods. The countries have expanded bilateral ties and since 2003 Iran has emerged as Iraq's top trading partner. An Iraqi trade delegation was in Tehran early this month to see what it needs to be done to carry through the $5 billion target officials have predicted for value of Iranian goods destined to the country. Iraqi industrialists have criticized the deals saying Iran has been flooding Iraqi markets with cheap goods to the extent that they find it hard to compete.

Iraq to purchase 4 million tons of wheat from Australia

Australia has agreed to supply Iraq with four million tons of wheat a year, according to the Trade Ministry. In a statement, the ministry said the deal will cost Iraq more than 400 million dollars and is the largest by Iraq with one single country. The deal was signed during the recent visit by Prime Minister Nouri al‐Maliki to Australia. The sides, the statement said, have also signed another agreement under which Australia will build three hospitals in the outskirts of Baghdad. Iraq currently imports most of its food needs and the wheat deal with Australia is not sufficient to meet all domestic requirements despite its huge volume. Iraq needs up to six million tons of wheat a year while its grain yields have been receding to lowest levels in the past few years. Its domestic harvest of both wheat and barley barely hits one million tons. Rice yields, another staple, of which about 1 million tons are needed every year, are currently negligible due to persistent drought. Iraq’s food import bill consumes up to 5 billion dollars every year.

French contribution to Iraqi power stations in ministry meeting

A senior Electricity Ministry official on Wednesday met with French officials to discuss French companies’ role in the establishment of power generating stations and the rehabilitation of natural gas stations. “A senior under secretary of state in the ministry, Raad al-Haris, received in his office the head of the economic missions to the Middle East in the French Ministry of Finance and Economy,” according to a ministry statement received by Aswat al-Iraq news agency. The meeting tackled the readiness of the French side to send representatives of energy companies to Baghdad to discuss ideas in greater depth.

Deputy FM, British official take up reconstruction, relations

Iraq’s Deputy Foreign Minister Labid al-Abbawi on Wednesday met with the deputy British ambassador in Baghdad to discuss the readiness of British companies to contribute to reconstruction efforts in the country. Abbawi’s meeting with John Tuknut also tackled the development of relations with Iraq’s neighboring countries, according to a ministry statement received by Aswat al-Iraq news agency. Means of boosting mutual relations between Iraq and the Arab and international communities were also raised during the meeting, the statement noted.

365 Government rejects demands for further funding

The Iraqi cabinet issued an order addressed to all ministries and state-owned institutions that it should not be contacted for any further funding, after the parliament passed the federal budget of 2009. “Any additional funding requires a special law for it,” the cabinet said in the order that Aswat al-Iraqi news agency received a copy of it. “The ministry of finance can be contacted directly for any urgent circumstances in this regard,” it added.

MP demands government to improve investments by amending laws

Member of the Iraqi parliament’s financial committee, Sami al‐Attroshi, on Tuesday called on the government to encourage investments by amending laws, according to a press statement issued by al‐Attroshi. “The amendments can be submitted to the parliament as proposed bills,” al‐Attroshi said in the statement that was received by Aswat al‐Iraq news agency. “The amendments should aim at convinceing investors that Iraq deserves a priority in investments,” he said.

7 billion ID for reclamation of 15,000 donums in Babel

The Iraqi Ministry of Water Resources on Tuesday said that it finalized a project of reclamation that encompassed 15 thousand donums (1 donum = 2500 square meters) of agricultural lands in Babel province, at a total cost of seven billion Iraqi diners (ID), according to a release issued by the Ministry. “The exact cost of the project is 7.04 billion ID,” said the release that was received by Aswat al-Iraq news agency. “The project embraced the agricultural lands of Hilla-Kifil’s irrigation system,” it added.

Provinces’ urban designs sent to investment commissions – ministry

Iraqi Minister of Municipalities and Public Works on Monday said that his ministry sent the urban designs of all the provinces and cities to investment commissions, as a preliminary step toward starting investment and construction projects in the country. “This issue will facilitate the missions of investors, and both local and foreign companies,” Riyadh Ghareeb told Aswat al‐ Iraq news agency. “Our ministry is currently drafting the designs for suburbs and districts,” he added.

Parliamentary committee working on revising investment act – MP

The Iraqi Parliament’s economic committee is working on a revision to the investment law number 13 of 2006, to solve all the problems and obstacles that are facing investments and investors in the country, a member of the committee said on Monday. “The committee is working to revise some of the act’s items,” lawmaker Amira al‐Baldawi told Aswat al‐Iraq news agency. “The amendments will be submitted to the Iraqi council of representatives during the coming legislative term,” he said.

366 Agricultural initiative loans reach 200 billion ID

An estimated 200 billion Iraqi dinars has been awarded in loans to 11,297 persons under the agricultural initiative, the director of the Agricultural Bank said on Sunday. “The director called on producers to benefit from these loans in accordance with the terms set out in the initiative,” according to a statement received by Aswat al-Iraq news agency. There are 72 branches of the Agricultural Bank throughout the country.

Senior MP visits Japan over investment

The head of the Iraqi Parliament’s foreign relations committee, Sheikh Humam Hamoudi, is visiting Japan’s capital, Tokyo, on an official trip that aims to encourage Japanese companies to invest in Iraq, according to a release issued by Hamoudi’s office. “Hamoudi arrived in Tokyo on Sunday (Mar. 15), leading a parliamentary delegation, in response to an invitation from the Japanese government,” said the release that was received by Aswat al-Iraq news agency.

Social front

Lebanon

Political front

Outraged Lahoud tells Aoun: Stop misleading the Lebanese

Lebanon's Minister Nassib Lahoud responded to the attacks of the Free Patriotic Movement leader MP Michel Aoun's during a press conference on Tuesday, by telling the retired general "to stop cheating and misleading the Lebanese people." Lahoud, who appeared to have had enough with Aoun told reporters : Aoun has reached a new low, which does not suit the Lebanese and the Christian communities. In response to Aoun's allegations that he was with Saiqa Lahoud said He continued " General [Michel] Aoun’s rhetoric is based on rumors. Misleading information cannot fool the Lebanese." In response to Aoun's attacks against the Church Lahoud said : " Who forgets the campaigns against Maronite Patriarch Nasrallah Boutros Sfeir, the Maronite bishops and the Patriarchy?" Lahoud stressed that : "The March 14 alliance would be unified in the Metn district and a unified list will be announced in the forthcoming weeks" Lahoud criticized Aoun's campaign style : " Attacks and campaigns are Aoun’s style to run in the elections. Aoun’s campaigns also targeted prominent journalists, the spirit of the martyrs." Lahoud warned: " We will not remain silent to these attempts."With regards to Aoun's former ally MP Michel Murr Lahoud said : "There used to be a disagreement with MP Michel al- Murr in the past, but I previously announced that there are some common points between us." Lahoud concluded: "I remind Aoun that I was within the opposition for 15 years. If he wants to hold me accountable for participating in governance, this would be for the past six months when I became minister of state."

367 Lebanon's 2009 elections: Is Aoun crying wolf ?

General Aoun has been accusing the March 14 alliance of paying for transporting Lebanese expatriates to vote in the upcoming elections. The question is why is Aoun making these accusations ....is Aoun crying wolf ? According to the following revelation it is March 8 that is paying for transporting Lebanese expatiates to vote. The ruling majority has been able to determine that the General has been accusing them of the irregularities his Free Patriotic Movement party has been conducting . To prove it, the Lebanese Forces , a key member of the ruling March 14 alliance were able ( according to their website ) to obtain a recording of the conversation of an FPM expatriate in Paris with the March 8 office that handles the transportation of the March 8 expatiates who want to come and vote in Lebanon in the upcoming elections. Apparently there are special land phone numbers that March 8th supporters call in France for help with transportation to Lebanon in addition to 2 cellular numbers for Hezbollah representative in Paris: Ali Gibawi

Lebanon's March 14 alliance launches its 2009 election campaign

"On the 7th of June you have a date with the upcoming parliamentary elections that are being conducted under a major transformation and this election is a referendum on the future of Lebanon and the state-building project," Soueid , told the attendees during the launching of the March 14 election campaign. Former MP Faris Soueid is the March 14 Secretariat General Coordinator and a key member of the Cedar Revolution alliance The conference at the Biehl ceneter marking the launching of the March 14 election campaign was attended by the leaders of the Cedar Revolution Soueid listed the main issues of the campaign as follows :

1- To protect Lebanon against Israeli aggression and regaining Shebaa via UNSCR 1701.

2- To impose the authority of the state on all its territories. There should be no arms other than those of the Lebanese state.

3 - To end the dispute with Syria and build normal, friendly relations based on the Taef accord, to complete our diplomatic relations, with border control and demarcation, to end the issue of Lebanese detainees.

4- To provide harmony between Lebanon and the international community, not to place Lebanon in confrontation with the international community.

5- We will work to regain Lebanon's Arab role, commit to supporting the Palestinian people and Authority’s struggle in establishing an independent state with its capital Jerusalem.

6- we will pursue our strict commitment in not settling Palestinian refugees in Lebanon and adopting a draft law presented by March 14 MPs 6 months ago to amend the constitution on the issue

368 7 - We are committed to state building through the implementation of the Taef accord and securing the free and just presence of all sects.

8- To commit to the requirements of the Special Tribunal for Lebanon in a manner that guarantees Lebanon’s safety and stability.

9- To provide the necessary commitments for returning displaced citizens and to finally close this issue once and for all.

10 - To protect Lebanon and the Lebanese internally and externally from the ramifications of the international financial crisis, to put in place an effective program regarding our national debt.

11- To implement economic, social and development policies.

12 - To secure wider participation of women in Lebanon’s political, economic and social life and in the decision making process

13- To commit to the cause of the Lebanese Diaspora, in securing them with equal rights and duties particularly in their right to vote.

14 - To put an end to the environmental deterioration in Lebanon via a strategy of sustainable development.

Soueid concluded his speech by stressing that March 14 alliance forces" undertake to cooperate in the spirit of solidarity throughout their campaign in the upcoming elections and in all the electoral districts of country "

Soueid stressed that "The March 14 Forces strongly belief that political stability and security are the foundations for job creation, providing proper health services , and education and for this reason one of its first priorities is to call for a socio-economic conference " According to An Nahar daily the March 14 majority alliance conducted in- depth and extensive deliberations before finalizing the election campaign charter and that MP Walid Jumblatt was very instrumental refining the language of the charter "by including a reference to Lebanon's Arab identity and toning down demands for Lebanon's neutralization." Supporters of Lebanon's anti-Syrian "March 14" parliamentary majority coalition watch as they announce their political general election programme in Beirut March 14, 2009.

Geo strategic front

Britain bars Hizbullah spokesman from entry: US shows discontent over UK's contact with party

369 Hizbullah spokesman Ibrahim Moussawi has been denied a visa to visit Britain, despite initial news reports indicating that he had been granted permission to enter the county. The Daily Star understands that Moussawi's application has been turned down by British Home Secretary Jacqui Smith following a campaign to ban him from the country. A spokesman for the British Home Office said that he could not comment on individual visa applications. Moussawi was due to speak at the School of Oriental and African Studies (SOAS) in London later this month, but the Conservative opposition called for him to be refused entry to the country because of anti‐ Semitic comments he is alleged to have made. Moussawi, who has been allowed to speak in Britain on at least two occasions in the past, and holds a doctorate from an English university, has consistently denied making the comments. But the British government has clamped down on allowing controversial speakers to visit the country in recent months. In February an anti‐ Islamic Dutch MP, Geert Wilders, was refused entry to Britain where he had planned to screen a controversial film attacking Muslims. Campaigners argued it would be "beyond hypocrisy" if Moussawi was allowed into the country in the wake of the decision.

He had been invited to speak about Hizbullah's "history, strategy and ideology," at SOAS, who described him as an "expert on Hizbullah and Islamist political theory." But such was the opposition to Moussawi's trip that some campaigners pledged to seek a warrant for his arrest if he was granted the visa. Media reports early on Thursday said that Moussawi had been granted the visa, but informed sources in London told The Daily Star that his application had been denied. The decision comes just days after Britain confirmed that it had established low‐level contacts with Hizbullah's political wing, a move which has apparently divided the Obama administration in Washington. Foreign Office minister Bill Rammell said that the reason for the shift in policy was "to press Hizbullah to play a more constructive role and move away from violence."

The initial response from the US government was muted. Secretary of State Hillary Clinton declined to comment on the matter, and the State Department simply confirmed that Britain had informed the US of its decision in advance and that Washington would watch to see how the policy proceeded. But several days later US Ambassador Michele Sison reiterated Washington's assessment of Hizbullah as a terrorist organization, and on Thursday, the US government hinted that it was unhappy with Britain's decision to engage with the group.

Saudi Arabia urges Iran to stay out of Lebanon, Palestine

Saudi Arabia's top diplomat urged Iran to stay out of internal Arab disputes, in particular in Lebanon and among the Palestinians. Iran's foreign minister made a surprise visit to Saudi Arabia amid rising tensions between the Islamic Republic and the Arab world. Manouchehr Mottaki was met by his Saudi counterpart, Prince Saud al-Faisal, at Riyadh Air Force base and met later with the Saudi monarch.The visit comes after Saudi Arabia, Egypt and Syria held a mini-summit in Riyadh last week to patch up their differences, which largely revolve around the role of Iran in the region. Iran supports

370 Islamist movements Hamas and Hezbollah and is often at odds with U.S.-allied Arab regimes in the region. Arab nations such as Egypt and Saudi Arabia are also wary of Iran's nuclear program. Saudi Arabia backs the parliamentary majority in Lebanon, where Iranian and Syrian backed Hezbollah leads the opposition alliance. Hamas took control of the Gaza Strip in June 2007 after deadly battles with the mainstream Fatah organization of Palestinian President Mahmoud Abbas At a news conference Sunday, Saud al-Faisal called for "mutual respect" between his nation and Iran. Egypt's Foreign Minister Ahmed Aboul Gheit accused Iran last week of "manipulating" Arab states to increase its influence, and Saudi Arabia has called for a "unified Arab" approach to Iran. Syria is Iran's closest Arab ally, something Saudi Arabia and Egypt would like to change.

Lebanon President accuses Israel of continued violations

Lebanon's president is accusing Israel of continually violating his nation's territory. Michel Suleiman told a news conference Wednesday in France that Israel still occupies Shebaa farms which he says violates a U.N. Security Council resolution 1701 adopted in 2006, Kuwait's Kuna news agency reports. In his talks with Sarkozy, Suleiman said he pointed out to Israel's repeated violations of Lebanon's airspace. Suleiman was unwavering on Lebanon's position regarding the occupied Shebaa Farms saying that another Security Council Resolution 425 "clearly calls for an unconditional withdrawal from all occupied Lebanese territories." In addition, Suleiman said Israel has refused to hand over maps showing where the land mines and cluster bombs were placed during a 2006 incursion into southern Lebanon. Suleiman said he pointed in his talks with Sarkozy the fact that "Israel is reneging on promises to hand over maps of landmines and cluster bombs in Lebanon." Suleiman said that he asked Sarkozy to help "ensure the full implementation of (Security Council) Resolution 1701, which Israel has so far failed to observe." He accused Israel of waging an "economic war" on Lebanon by "its flagrant breaches" of the resolution. Suleiman also accused Israel of taking advantage of Arab disagreements. "If the world wants peace it must work for reconciliation" among Palestinians and Arabs, Suleiman said. Sarkozy has accepted an invitation to visit Lebanon on an official trip along with the first French lady, Suleiman said Suleiman called on Sarkozy to adopt "a comprehensive approach to the Arab-Israeli conflict and to host an international peace conference based on international resolutions. For his part, Sarkozy pledged France's support for the reconciliation process and for "efforts to consolidate the independence and unity of Lebanon," Suleiman said On regional developments, Suleiman said a future resolution to the Middle East conflict "must not come at the expense of Lebanon or harm Arab interests." Suleiman said he assured Sarkozy that Lebanese-Syrian bilateral ties "were progressing on the right track for both countries."

Fneish, Filipino envoy discuss need to protect workers

Filipino ambassador to Lebanon Gilberto G. B. Asuque met with Lebanese Labor Minister Mohammad Fneish early last week to discuss a protocol on the rights of Filipinos working in the country, the Philippines Foreign Ministry said on Thursday. Asuque offered Fneish copies of a Philippine proposed memorandum of

371 understanding on bilateral labor cooperation earlier submitted to the Foreign Ministry. According to the website of the Philippines Foreign Ministry, the memorandum is in line with Manila's Protocol on the Deployment of Filipino Household Service Workers, aimed at ensuring the legal and financial protection of Filipino domestic workers. There has not yet been any word from the Lebanese authorities on whether they intend to adopt the agreement, but Fneish "assured" Asuque that his ministry would study the proposal with General Security and the Justice and Foreign Ministries, the website said. The Philippines was meanwhile ready to send a technical team to Lebanon to discuss details of the memorandum with Lebanese officials, Asuque told Fneish. The Philippines has cause to push for the memorandum..

In addition, Lebanon has not yet signed up to the UN Convention on the Protection of the Rights of All Migrant Workers and Members of Their Families. Although Manila has maintained a deployment ban for Lebanon since the July 2006 war, Asuque told The Daily Star in an interview last month that his government was reviewing the policy, specifically around "how to promote the welfare and labor rights" of its citizens. Asuque's meeting with Fneish followed an official visit to Beirut by Philippines Foreign Affairs Secretary Alberto G. Romulo in mid-February. After meetings with President Sleiman, Premier Fouad Siniora and Foreign Minister Fawzi Salloukh, Romulo announced enhanced bilateral partnership through the mutual visits of MPs, negotiation of agreements in the areas of labor, trade and culture, and engagement in the Organization of the Islamic Conference and other organizations. Diplomatic relations between Lebanon and the Philippines were established in 1946, but Manila did not open an embassy in Beirut until 1996.

Saudi ambassador to Pakistan to take Lebanon post

Ali Awaad Assiri, Saudi Arabia's ambassador to Pakistan, who is also dean of the Saudi diplomatic corps, has been appointed as ambassador to Lebanon, Saudi media reported over the weekend. Assiri will replace Abdel-Aziz Khoja, who was appointed as Information and Culture Minister in the recent major Cabinet reshuffle made by King Abdullah. When contacted by telephone by the Saudi Gazatte newspaper, Assiri neither denied nor confirmed the appointment. But he said he was proud of the confidence placed on him by the kingdom's leadership. He expressed his readiness to work in any position for the country. Sources told the Saudi Gazette that the present Saudi ambassador to Turkmenistan, Abdel-Aziz al-Ghadair, would replace Assiri in Islamabad. Assiri is expected to assume his new position in Beirut within the next few months, according to the Saudi Gazette.

Hariri: Syria-Israel peace would benefit Lebanese

Future Movement leader MP Saad Hariri said on Saturday Lebanon would be the first to benefit from a Syrian‐Israeli peace deal, adding that Syrian‐Saudi rapprochement is needed in order to unite the Arab stance on the Arab Peace Initiative. In an interview with Radio France International, Hariri said that Western openness toward Syria would not occur at Lebanon's expense adding: "We would be the first to benefit from the peace, because when Syria signs, a

372 lot of things would change." Hariri explained that Syrian‐Saudi rapprochement is "a needed Arab process" in light of the existing tensions in the region, particularly when "the new Israeli government is not a centrist one." He also stressed the need for a united Arab stance regarding the Arab peace initiative. Regarding the issue of the parliamentary elections in Lebanon on June 7, Hariri said that he does not mind the emergence of a national unity government similar to the 2005 government. However, he prefers to refer matters to the Lebanese Constitution rather than submit to the veto concept, as is the case now. The majority leader added that the dispute between his movement and Hizbullah is political in nature and not sectarian, saying dialogue with Hizbullah "does not mean that we approve of its policies." In an interview with Reuters earlier this month, Hariri said he would not share power in a unity government if Hizbullah and its allies won the election. Hariri said a victory for the Hizbullah‐led coalition would increase the influence of Iran in the country. Asked if he would consider sharing power with Hizbullah and its allies in the next government if they won the majority of seats in Lebanon's parliament, Hariri told Reuters: "No we would not take part. I am talking about myself. Me as Future Movement would not take part in the government.

Social front

Italy funds project to boost gender equality in education

The director of the UN Education, Scientific, and Cultural Organization (UNESCO) Regional Bureau for Education in the Arab States, Abdel‐Moneim Osman, and the ambassador of Italy, Gabriele Checchia signed an agreement on Friday for the implementation of the project "Supporting Gender Equality in education, Lebanon," funded by the Italian government for a total amount of 480,000 euros.

The signing ceremony took place at the UNESCO Office in Beirut, in the presence of the director general of the Ministry of Education Higher Education, Fady Yarak, the director general of the Ministry of Social Affairs, Randa Bou Hamdan and a number of representatives of UN Organizations. "This project aims at achieving gender equality in the respect of fundamental human rights for all by ensuring equal opportunities in the access to quality education," according to a statement by the embassy. "The objective of the initiative is the promotion of the active and responsible citizenship grounded on the respect of differences and the encouragement of concrete, effective and long‐lasting improvements in the lives of Lebanese women, men and children," it added.

Economic front

Lebanese cell operators deny curtailing phone‐card supplies

373 Lebanon's two cellular operators denied Friday that they are refraining from supplying sufficient prepaid mobile‐card numbers to retailers. MTC Touch and Alfa said in separate statements that they have shipped sufficient prepaid card numbers to retail shops. Some merchants claimed on Thursday that the Telecom Ministry and the two cellular operators have cut back on the number of prepaid cards to the market, prompting some dealers to charge more for these cards. The companies said they have shipped enough prepaid cards to meet the market demand, adding that they will make sure no merchant tries to sell the cards above the official rate. The government agreed to cut the rates of both postpaid and prepaid cellular cards as of April of this year. According to the new scheme, the monthly subscriptions for the postpaid cellular cards will fall to $15 from the current $25, a 40‐percent drop. The per‐minute rate for the postpaid cards will also fall to $0.11 from the current $0.13, a drop of 16 percent. In addition, the price of a prepaid car with a duration of one month will fall from the current $45 to $25, while the cost of a one‐minute call will drop to $0.36 from the current $0.50. The consumers will have the choice to buy up to three‐month prepaid cards for $75. An official from the ministry told the paper that the new cards will be available in the first month of April.

Beirut has 33rd highest office occupancy cost in the world

The 2009 survey of the world's most expensive office locations in 57 cities around the world by property consultants Cushman & Wakefield ranked Beirut as the 33rd most‐expensive city worldwide and the third‐most expensive among six cities in the Middle East & Africa region included in the rankings, as reported by Lebanon This Week, the economic publication of the Byblos Bank Group. Beirut was the 37th most expensive city globally and the third most expensive in the region in the 2008 survey. The study evaluates 202 key office locations in 57 countries and includes in its annual rankings the location with the most expensive occupancy cost in each country. Globally, Beirut ranked right behind Brussels, Sydney, Vienna and Copenhagen and was considered more expensive than Kuala Lampur, Budapest, Vancouver and Bucharest. The cost of office space in Beirut was 398 euros ($514.5) per square meter in 2008, significantly higher than the global average of 331 euros and the regional average of 268 euros. According to Cushman & Wakefield, the rates reflect rent in addition to municipal tax, service charges and value‐added tax. It said there was little change in the Lebanese market during 2008 due to the political problems earlier in the year. But it added that there was a shortage of good quality office accommodation within the Beirut Central District (BCD), which has led to rent values in the capital to grow by 14 percent over the year. The increase in office‐space rent in the BCD was higher than the region's rental growth of 9 percent and above the global increase of 3 percent worldwide in 2008. The BCD also ranked 4th among the top 10 most expensive locations in the Middle East & Africa region in 2008. It also, ranked among the top 10 best performing locations in the region with an annual rental growth of 14 percent last year, behind Abu Dhabi with 33 percent, Durban in South Africa with 30 percent, Cape Town with 20 percent and

374 Johannesburg with 18 percent. Hong Kong is the world's most expensive city for office space at 1,743 euros per square meter a year.

Lebanon swaps $2.1 billion in Eurobonds to finance debt

The Lebanese successfully swapped $2.1 billion in Eurobonds to finance the public debt, the Finance Ministry said. "The Lebanese Republic launched a voluntary debt exchange offer for any-or-all of selected notes maturing in 2009 for new longer-dated notes. The exchange offer is now successfully closed," a statement by the ministry said. The aggregate participation rate for the exchange offer was 82.8 percent, $1,655,324,000 and 211,097,000 euro face value of notes maturing 2009 were exchanged into new longer- dated notes. The exchange offer and additional notes have resulted in aggregate new issues of $2,100,000,000 and 211,097,000 euro. The ministry explained that the purpose of the exchange offer was to proactively conduct liability management operations, increase the republic's financial flexibility and extend its debt maturity profile. In addition to the new notes being issued pursuant to the voluntary exchange offer, Lebanon will also issue additional notes for cash in US denominated currency. All successive Lebanese governments since 1994 have been taping the local and international markets in an attempt to reduce the mounting public debt which is now more than $47 billion. Finance Minister Mohammad Shatah said that the last issue of Eurobonds was very successful in all terms. He added that the swapping of the bonds maturing in 2009 was replaced with bonds maturing in 2012 and 2017.

Lebanon Finance Ministry gets $4 million grant for reforms

The World Bank granted Lebanon $4 million on Monday to implement administrative reforms at the Finance Ministry aimed at improving the management of funds and resources and making sure they are fairly invested. "This donation is very important because it will be used in the designing of financial administrative reforms and specifies some of the flows in the expenditure system in Lebanon," said Finance Minister Mohammad Shatah. The minister stressed that one of the most apparent flaws in the government's draft budget was that it only revealed the spending of a small amount of public funds in Lebanon. The $4 million is only a small part of a $70 million donation that the World Bank granted Lebanon following the July 2006 war for the reconstruction of the country. Another $30 million of the grant was used for the reconstruction of infrastructure in the areas that have been severely damaged; $5 million were allocated to Electricite du Liban, the country's ailing power company, to provide technical assistance to this sector; $15 million to the drinking‐water project in Bekaa; $1 million to the implementation of reforms in the social and health sectors; and finally $15 million to the International Finance Corporation (IFC), the private arm of the World Bank. He revised the budget deficit in the 2009 draft budget from LL4.8 trillion to LL6 trillion due to the rise in spending in the public departments.

375

Harb seeks to grill Tabourian over 'mismanagement' of energy, water

MP Boutros Harb requested on Thursday that Energy and Water Minister Alain Tabourian be questioned on the grounds of his poor management of the energy and water sectors. In a petition calling for Tabourian's interrogation that Harb submitted to Speaker Nabih Berri on Tuesday, the MP said, "If Tabourian continues to be the minister of the Energy and Water Ministry, it would pose a danger to citizens and their health, and violations of their right to state services and public resources would continue." Harb asked for a Parliament session be held as soon as possible and the "vote of confidence for Tabourian be withdrawn," in order to avoid the continued "build-up of damage that he has inflicted."

UAE Red Crescent to help build shelters for refugees

Chairman of the board of the United Arab Emirates Red Crescent (UAERC) Ali Abdullah al-Kabi and Peter Ford, representative of UNRWA's commissioner general, signed Tuesday two agreements for the rehabilitation of shelters and relief activities in Palestinian camps in Lebanon. UAERC has pledged $ 5 million to rehabilitate shelters in the Burj al-Shemali camp in South Lebanon. The project will improve the physical condition of 343 shelters identified as the most structurally unsound, hazardous and unhygienic among the many dilapidated shelters in Burj al-Shemali. The project comes under the Camp Improvement Initiative, an initiative launched by the Lebanese government and UNRWA in 2006, to improve the living conditions of Palestine refugees in Lebanon's 12 refugee camps. The UAERC is also contributing $ 1 million toward UNRWA's relief work for refugees affected by the Nahr al-Bared conflict. The funds will allow UNRWA to construct 149 temporary housing units for Palestinian families who were displaced from the camp during summer 2007, and who are still hosted by relatives or friends or in unsuitable places. The UAERC is a long standing supporter of UNRWA and the Palestine refugees. The UAERC has funded major construction projects including Khan Younis in Gaza, Jenin in the West Bank, and more recently Neirab in Aleppo, Syria. Some 4.6 million Palestine refugees in UNRWA's five fields of operations - Jordan, Lebanon, Syria, Gaza and the West Bank, including East Jerusalem - are eligible for agency services, including education, health care, social services, shelter, micro-credit loans and emergency aid. UNRWA employs nearly 30,000 staff, the vast majority of whom are Palestinian refugees. UNRWA's operations are financed almost entirely by contributions from donors. Its regular budget for 2008-09 is $1.1 billion, which covers the recurrent costs of the agency's education, health and relief and social-services activities.

Lebanese Finance Ministry's 8th progress report on the Paris III donors conference

The Finance Ministry released Wednesday the 8th progress report on the Paris III donor conference. The following is the summary of the report. Paris III Pledge Update: By end- 2008, 71 percent ($5.384 billion) of the Paris III pledges were signed into agreements, of

376 which 58 percent ($3.122 billion) were received by the private and public sectors. Main progress was achieved in the categories of budget support and private-sector support. Budget-support agreements exceeded budget-support pledges made at Paris III; disbursements reached 70 percent of commitments. The remaining disbursements will be released in 2009, subject to implementation of agreed reform initiatives. Private-sector support agreements reached 98 percent of pledges and disbursements were estimated at 55 percent of commitments. Pledges for project support ($3.491 billion) progressed at a slower rate due to the long pipeline of projects at the Council for Development and Reconstruction (CDR) and the time lag resulting from preparation, signature and then ratification by Parliament of any loan agreement covering project financing. Social Cluster: Key achievements were registered in 2008 in the social cluster. The Social Affairs Ministry launched the pilot targeting program and the Education and Higher Education Ministry made steady progress in consolidation of its "Policy, Planning, Monitoring and Information Management Unit" with the implementation of the Education Management Information System, and the School Information System. In addition, a program to train teachers added to the improvements in the efficiency and effectiveness of the teaching workforce. Economic Cluster: Several steps were implemented to improve the fiscal and business environment. The Finance Ministry issued the 2009 budget circular with a medium-term expenditure framework, a global expenditure ceiling and ceilings for line ministries. The Tax Procedure Code and the Debt Management Law were ratified. In addition, progress was achieved on the system for electronic filing and payment. Trade facilitation measures were pursued with the implementation of the remote manifest registration and the initial "Asycuda World" application. The Economy and Trade Ministry was successful in putting in place measures to streamline business registration and to increase awareness on intellectual property. The Finance Ministry is expected to launch the e-filing of taxes by the end of 2009. Both the Economy and Trade Ministry and Office of the Minister of State for Administrative Reform will focus on: (i) the submission to Parliament of all draft laws (11) pertaining to the business and regulatory environment and the draft law for a one- stop-shop business registration at "Liban Post"; (ii) mobilizing funds to improve governance within the public sector and to implement "e-government" and anti- corruption initiatives.

Lebanese government aims to reduce 'public-debt-to-GDP ratio'

Finance Minister Mohammad Shatah on Wednesday said the government's objective is to reduce the public‐debt ratio to the country's GDP. "The measures which were raised in the Paris III donor conference paper may not be sufficient to cut the public debt quite drastically. But this strategy could at least reduce the public‐debt ratio to the country's GDP," Shatah said after a luncheon in his honor hosted by Lebanon Opportunities. At present, the public debt stands at more than $47 billion, or 162 percent of the GDP.

377 The minister admitted the debt-to-GDP ratio was still very high although it fell from 180 percent to 162 percent. Lebanon has one of the highest public debt-to-GDP ratios in the world. Shatah repeated the argument of many economists that a bigger GDP will make the public-debt less dangerous. But even the country's GDP seems to be a matter of opinion, with some officials estimating the GDP at $25 billion and others at $30 billion. The donor states, which pledged nearly $7.6 billion in grants and soft loans to Lebanon, are pressing the Lebanese government to keep its promise to cut the budget deficit through, privatization, reducing spending and raising the value-added tax ratio gradually. But successive governments failed to meet these conditions under the pretext that the delicate political and social nature of Lebanon does not allow the authorities to implement such ambitious goals. Shatah said the recent debt swap was successful by all measures. Lebanon successfully issued nearly $2.3 billion in Eurobonds in dollar and euro currencies, the largest single issue in the Middle East. The aggregate participation rate for the exchange offer was 82.8 percent; $1,655,324,000 and 211,097,000 euro face value of notes maturing in 2009 were exchanged into new longer-dated notes. The exchange offer and additional notes have resulted in aggregate new issues of $2,100,000,000 and 211,097,000 euro. Shatah said the banks which managed the launch of the Eurobonds expected 50 to 55 percent of the issue to be swapped in the market due to the international market conditions, "but 83 percent of this issue was snapped up by local and foreign investors and this is a vote of confidence in Lebanon."

Lebanon cuts delayed-tax fines by 90 percent

The Lebanese Finance Ministry issued a statement declaring a 90-percent decrease in the fines imposed on delayed tax payments collected by the ministry's directorate general. The fines should be paid by April 30, 2009, at the latest with a monthly 1.5 percent interest to be imposed starting February 1, 2009, in case the amounts were not fully paid. "Fines that were collected before the implementation of this law are considered to be a legitimate right to the Treasury and cannot reclaimed unless there was a mistake in the collection," a ministry source said.

Microsoft Launches Small Business Initiative for Lebanese Entrepreneurs, BizSpark

Microsoft is partnering with Lebanese firms Berytech and BIAT to reach out to young entrepreneurs, seeking to support their efforts in launching or further developing small- business technology and software startups. "BizSpark," an event on Tuesday March 10th, at the Berytech Building, kicked off the initiative, and was well attended by Microsoft executives, members of the Ministry of Economy, Chambers of Commerce, universities, associations (IT) NGOs, and entrepreneurs. The program, a global initiative, allows local technology startups to use full-featured Microsoft development tools and production licenses with no up-front cost. During the BizSpark launch event, Khalil Abdel Massih, Microsoft Country Manager, said "It is during these times in particular, as we face the challenges of the economic downturn that we must reach out to startups; we understand how difficult it is to maintain a business in these prevailing conditions... Young startups today could be the next successful business of tomorrow, and we believe Lebanon has the

378 right talent and potential to build a promising and fruitful future." Nicolas Rouhana, Director of Berytech Technology Pole - a Lebanese incubator for technology companies, stated: "This [partnership] reinforces our continuous commitment to provide outstanding support and opportunities to technology companies in Lebanon." He also stated that many startups in Berytech have expressed interest in entering this program. Eligible candidates must be privately-held companies that build software-based products or services, are three years old or younger, and have less than USD$1 million in annual revenue.

Iraqi Embassy in Beirut promotes shopping center

The commercial office at the Iraqi Embassy in Lebanon organized a meeting with representatives of the various economic sectors to introduce them to the commercial shopping center that is going to open this July under the supervision of the Iraqi Union for Development and Investment in Baghdad. The center aims at marketing the Arab and international products in the Iraqi market. Ghazi Koraytem, president of the Chamber of Commerce and Industry of Beirut and Mount Lebanon, believes this event is important because it opens the way for new jobs opportunities in Iraq. He added that the Lebanese private sector has a competitive edge over many companies in Iraq as the value of trade with this country reached $284 million in 2008, adding that Iraq is considered to be the third market for Lebanese‐made goods.

Egypt

Political front

Zomor Calls For Moral Compensation

Tarek El‐Zomor, member of the Jihad organization and allegedly one of late president Anwar Sadat’s assassins, is demanding moral compensation to salvage his image in society after being imprisoned for his involvement in the 1981 parade shooting. In a memo presented yesterday by his lawyer Nizar Ghorab to the Attorney General of South Giza, El‐Zomor said: “The legal punishment faced by a convict stands in the face of fair and honest social integration [upon release] and their entitlement to certain rights of which they have been stripped during the sentence execution.” The moral compensation will act as a reminder to society of the convict’s achievements before detainment, according to the memo. El‐Zomor received an undergraduate degree in law, degrees in Quranic recital and Sharia as well as a doctorate in constitutional law. El‐Zomor and his cousin Abboud El‐Zomor, believed to be the leader of the outlawed Jihad

379 movement, have been imprisoned since their conviction in 1984, although they were only sentenced to 20 years. They have been in constant struggle with both the interior ministry and the Prosecutor General demanding their release.

Government Appeal On Gas Exports Verdict Adjourned Till April

The Appeals Circuit of the Supreme Administrative Court has decided to adjourn the hearing of the government’s appeal on the Cairo Administrative Court’s decision to ban gas exports to Israel and other countries until April 6. The court will examine the report of the State Commissioner’s Authority of the State Council which was submitted in a session. Though the report was not released to the lawyers present at the session or to the press, Ibrahim Yousri, who had initiated the case, told Daily News Egypt that the report concluded that the government’s appeal should be refused and the initial verdict of the Administrative Court to ban gas exports to Israel and other countries at lower than market prices, should be upheld. The report also indicated that millions were being wasted on gas deals which, at times, represented a mere fifth of market prices. The popular campaign to prevent the export of Egyptian gas had filed an appeal to rescind the ruling of the Supreme Administrative Court that the government could continue exports of natural gas to Israel and other countries. The campaign is attempting to put a stop to the export of Egyptian gas because the prices agreed in the contracts are lower than market prices for natural gas. The Supreme Administrative Court had ruled in February that gas exports could continue, while the Cairo Administrative Court had ruled that the government should stop exporting the gas last November because parliament had not been consulted. However, as the government appealed, the gas continued to flow through the intermediary company, Eastern Mediterranean Gas, that directly pumps the gas to Israel.

Geo strategic front

Sudan Chose To Resist, Says Ambassador

Sudan has been a victim of international conspiracies for the last 20 years, Sudanese ambassador to Egypt said Friday in reference to the International Criminal Court (ICC) warrant issued for the Sudanese president. "The ICC’s decision to arrest President Omar Al Beshir for committing crimes against humanity is a serious development in international relations and politicizing justice that targets Sudan in its president and authority,” ambassador Abdel Moniem Mabrouk said in a conference held in solidarity with Sudan. "They wanted to achieve what they couldn't do through military force and economic blockade, overlooking international laws and conventions," he added. These conspiracies target Sudan’s administration, integrity, unity and isolate it from its Arab, African and Muslim allies, in spite of the strides the country has taken in the realm of development, the ambassador explained. The United Nations says up to 300,000 people have died since conflict broke out in Darfur in 2003, when ethnic minority rebels took up arms against the Arab-dominated regime for a greater share of resources and power. A ceasefire has been agreed between the government and opposition groups but deadly clashes go on in the

380 western region. The ICC prosecutor says 2.7 million people have been uprooted from their homes, of whom 100,000 died of causes related to their displacement, such as starvation. Mabrouk stresses that the warrant is an attempt to counterfeit the truth, explaining that Darfur has always witnessed tribal conflicts over water resources but it doesn’t threaten world peace. This conflict, he added, is used as an entrance point to destabilize Sudan.

Egypt To Open Border With Gaza For Two Days

Egypt will open its Rafah border with the Gaza Strip for two days from Wednesday so students and the sick can cross, the state-run MENA news agency reported on Sunday. "The Rafah border will be open on Wednesday, for two days, in order to allow the passage of Palestinian students and the sick who are stuck on the Egyptian side," MENA said, quoting an unnamed official. The Rafah crossing between Gaza and Egypt is only one that bypasses Israel. The Strip has been under Israeli blockade since June 2007. Most of the 1.4 million inhabitants survive on foreign aid in the impoverished enclave. Egypt opens the crossing periodically to allow humanitarian assistance to enter Gaza, where more than 1,300 Palestinians were killed in a three-week Israeli onslaught in December and January.

Egypt Concerned About Future Israeli Government

Egyptian Foreign Minster Ahmad Aboul Gheit voiced concern Monday for Middle East peace hopes after an ultra-nationalist party signed up to be part of Israel's new government. "We have a negative, possibly damaging factor, which is the emergence of an extreme right government in Israel," he told members of the European Parliament in Brussels. Earlier Monday, Israeli prime minister designate Benjamin Netanyahu took the first step toward forming a right-wing government by inking a coalition deal with the Yisrael Beitenu party of Avigdor Lieberman. Lieberman, a controversial firebrand slammed as a "racist" by critics, is due to become the foreign minister in the new government. Aboul Gheit expressed fears about the new government, saying that "if they would implement what they've been talking about over the last few years, we would all of us face dire difficulties and face the most extreme of situations." However Netanyahu's Likud and Yisrael Beitenu included a clause in their agreement that stressed their preference for a broader unity cabinet and said the portfolio distribution would change if such a union were formed. A narrow right-wing government is likely to put Israel at odds with its main ally the United States because it would probably put the brakes on the already hobbled peace negotiations with the Palestinians. EU foreign policy chief Javier Solana said Europe "would be ready to do business as usual with a government in Israel that is prepared to continue talking and working for the dual state solution." "If that is not the case, the situation will be different," he said. French Foreign Minister Bernard Kouchner said the European Union had no choice but to work with whatever government is in power if the EU wants to have an influence on Middle East peace moves.

Palestinian Unity Talks In Cairo Hit Deadlock

381 Palestinian unity talks in Cairo were deadlocked after factions failed to agree on the composition and obligations of a unity government, officials said. Senior delegations from the Islamist Hamas and the Western‐backed Fatah faction of Palestinian president Mahmoud Abbas began work five days ago in committees formed to resolve their differences."The difficulties are, first, what kind of commitments the government ought to give to gain international acceptance and, second, whether (the government) is composed of (representatives of) the organizations or independents," he told AFP. Palestinian officials said the committees would wrap up their work on Saturday and submit the outcome of their discussions to a steering committee, that would include Egyptian officials, for arbitration.Wasil Abu Yusef, from the Palestine Liberation Front, told state news agency MENA that an agreement, if reached, would be announced on March 22. Abbas is expected to attend, he said. Fatah and Hamas have been bitterly divided since Hamas, which won a majority in a 2006 parliament election, seized the Gaza Strip in a week of deadly fighting in June 2007, thus limiting Abbas's authority to the West Bank. Hamas spokesman Fawzi Barhum said negotiators had narrowed the choice of government to either one that would be decided by a cross‐faction agreement or one that would reflect the size of blocs in parliament, where Hamas enjoys a majority. Barhum stressed that Hamas would not agree to abide by previous commitments either by Fatah‐led governments or the Palestine Liberation Organization, which reached the Oslo accords with Israel in 1993 that led to increased autonomy and the creation of the Palestinian Authority. Hamas also accused the Fatah‐ dominated Authority of continuing to arrest its members in the West Bank. "Since we've come to Cairo there have been 49 more arrests," said Hamdan. The PA denied it arrests Hamas members for political reasons. "That is grossly exaggerated," said Shaath, adding that 29 were released on Friday. Hamas had boycotted unity talks in Cairo last November over the arrests.

British National Claims He Was Tortured In Egypt, Says The Guardian

A British national is alleging that he was tortured in Egypt in collusion with UK intelligence agencies, British daily the Guardian reported Sunday.Twenty-six-year-old Azhar Khan says that he was detained at Cairo Airport when he and a friend flew to Egypt on July 9, 2008 for a holiday. While Khan's friend was not detained, Khan was held for 24 hours before being hooded, handcuffed and bundled into the back of a vehicle, the newspaper says. Khan alleges that he was taken to a building a short distance away with barred windows where he was stripped naked, handcuffed and the hood placed on his head again. Sounds of other people being tortured were audible, Khan claims, including the voice of one man who spoke English with a British accent. The Guardian says that it has been informed by a reliable source that MI5 “had an interest in another person who was in detention in Egypt at the same time as Khan”. Khan was arrested in connection with a plot to blow up a nightclub and shopping center in the UK in March 2004 but released without charge. The British Foreign Ministry reportedly admitted it knew that Khan has been tortured. The British government is currently embroiled in controversy surrounding the rendition and torture of terrorism suspects, after British resident and former Guantanamo detainee Binyam Mohamed alleged that British security

382 agencies were complicit in his torture. Rights groups have long alleged that terrorism suspects are surreptitiously sent to Egypt and other countries in the region by the United States for interrogation.

Us Aid Cut Result Of Conditions Rejected By Egypt, Says Presidential Spokesman

Presidential spokesman Suleiman Awad said that the $213 million decrease in US economic aid to Egypt this year was a result of conditions that were rejected by Egypt. Awad said it was a unilateral decision by the United States to cut economic assistance to Egypt from $413 million to $200 million as a result of Egypt’s refusal to adhere to certain conditions attached to the aid. Awad pointed out that the US government operations package for 2009 was put out by the previous US administration and thus the conditions attached to the aid had been set by the administration of former President George Bush. He added that there had been no time to coordinate with the current US administration over this year’s aid package. $1.5 billion was the total earmarked for aid to Egypt this year, $1.3 billion in military aid and the rest in economic assistance. Egypt is the second biggest recipient of annual aid from the US after Israel. Egypt has been receiving aid annually from the United States under the Camp David Peace accords but under the terms of the agreement, the aid depreciates by five percent every year. Military aid has remained constant, with the cuts being in the area of economic assistance. The conditionality on aid was a source of tension between Egypt and the previous American administration and at one point $100 million of US assistance to Egypt was frozen by the Senate. The freeze was later rescinded by then Secretary of State Condoleezza Rice.

Egypt Reopens Border With Gaza For Two Days

Egypt reopened its Rafah border with the Hamas-ruled Gaza Strip on Wednesday for two days to enable students and the sick to cross, a security official told. Border official Ghazi Hamad says more than 40 trucks carrying medicine and mineral water have crossed into Gaza so far. He says 120 Palestinians who were stranded in Egypt were also able to cross. The border will remain open until Thursday. About 350 Palestinian patients were also to cross from Gaza into Egypt Wednesday for treatment. The Rafah crossing is the only one that bypasses Israel but has been largely closed since June 2007, following Israel’s decision to impose a blockade on the Strip after Hamas took it over. Since then, Israel has tightened its blockade on the impoverished enclave where most of the 1.4 million inhabitants survive on foreign aid. Foreign passport holders, students studying outside the Palestinian territories and humanitarian cases will also cross into Egypt, Arafat said. Egypt opens the crossing periodically to allow humanitarian assistance to enter Gaza, where more than 1,300 Palestinians were killed in a three-week Israeli onslaught in December and January.

Economic front

383 Egyptian economic growth set to slow

Egyptian Finance Minister Youssef Boutros-Ghali said on Monday he expected his country's economic growth to slow to between 4 and 4.5 percent in the 2008/09 fiscal year, from 7.2 percent a year earlier. The economy of the most populous Arab country is already reeling under the weight of the global financial crisis, with a decline in revenues from the Suez Canal and tourism. Foreign direct investment fell to $4 billion between July and December 2008 from $7.7 billion in the same period a year earlier. In December, Prime Minister Ahmed Nazif said that the Egyptian government had set its target for economic growth at 5.5 percent for the two years starting July 2008. Egypt's gross domestic product (GDP) grew 7.2 percent in the 2007/08 fiscal year, the fastest pace in decades. But in the second quarter of the current fiscal year it grew 4.1 percent compared to 7.7 percent in the same period a year earlier. Boutros-Ghali said last month that the Egyptian economy faced a "serious contraction" in growth, with companies reducing their activities or cutting jobs. Reham El-Desoki, a senior economist at investment bank Beltone Financial, said Boutros-Ghali's forecast implies that "growth is more resilient than our expectations". The economy was expected to grow by 2.4 percent in 2009/10, she added in a statement to Reuters. Simon Kitchen, a senior economist at EFG-Hermes, Egypt's largest investment bank, said a decline in car sales were among signs that private consumption was also weakening. Ghabbour Auto, Egypt's largest publicly traded car assembly and retail company, this month reported a 4 percent decline in net profit for 2008. Kitchen said demand for steel, however, appeared to be holding up "which suggests construction and investment are still fairly strong". EFG-Hermes forecast an economic growth of 3.3 percent this year and 1.4 percent in 2009/10, he added. The government has approved a stimulus package worth 15 billion Egyptian pounds ($2.7 billion) to be spent mainly on infrastructure projects to create jobs, which could be followed by another 15 billion pounds in the 2009/10 fiscal year.

Egypt: Labour Strikes Point to Economic Pain

Egypt has seen a wave of labour strikes in recent weeks by workers in a range of professions from lawyers to truck drivers.Although strikers' specific demands vary, commentators generally attribute the phenomenon to increasingly difficult economic circumstances. "Recent strikes were called chiefly for economic reasons, not least of which has been the steadily increasing inflation seen in the last two years," Hamdi Abdelazim, economist and former president of the Cairo-based Sadat Academy told IPS. In mid-February, lorry drivers declared a five-day strike over provisions in a new traffic law banning articulated trailers. Days later, more than 40,000 privately owned pharmacies also staged a strike for several days to protest a government decision to apply taxes to pharmacies retroactively. Late February and early March saw more workers' actions. Lawyers called a strike protesting proposed legislation in parliament that called for increased court fees, while administrators employed by the ministry of education also declared a strike over unpaid bonuses. Most recently, on Mar. 5, employees at a newly privatised textile factory announced a strike after a dispute over profit-sharing. Education ministry administrators are still awaiting an official response to their demands. The other workers' actions, however, have succeeded in prising some limited gains from the

384 government. After intervention by President Hosni Mubrak, truck drivers were given a longer grace period to comply with required safety standards. Pharmacists received promises from the state that the offensive tax regime would be reconsidered. Lawyers, too, received government assurances that the new draft law on court fees would be subject to re-evaluation. Textile workers have kept up their strike, although they received a degree of satisfaction after the new owner of the formerly state-owned company, citing financial losses, offered to return the firm to Egyptian public ownership.

While specific demands may vary, local economists say the recent spate of workers' actions can be attributed to the increasingly difficult economic circumstances faced by the general public. Indeed, the global economic crisis - a de facto worldwide depression - has led to a recent bout of deflation on international markets. But Abdelazim says that prices in Egypt have declined only slightly relative to global price declines. According to Abdelazim, local inflation rates have now fallen to somewhere between 14 and 18 percent. "But for the bulk of Egypt's teeming population - some 40 percent of which currently lives on the poverty line - this is still much too high," he said.

Business Beat: A Look At Green Car Technology In Egypt

In a city with over 2 million vehicles and rampant pollution problems, it’s easy to assume that green car technology is non‐existent. However, while it may be a while before the streets of Cairo are crawling with hybrid and electric cars instead of smoke‐belching buses and gas‐ guzzling SUV’s, green automotive technology has begun to make subtle inroads in the city’s driving culture. Between the growing popularity of natural gas technology and the introduction of environment‐friendly features into new models of conventional vehicles, it seems that Egypt is well on the way to eliminating the “black cloud” of pollution. The largest area of growth in green vehicle technology has been in the use of compressed natural gas (CNG) as an alternative fuel. Besides being the cleanest burning fossil fuel, at about a third of the price of regular gas, CNG is also quite economical. In fact, the technology surged in popularity, particularly with taxi drivers, after 2008’s fuel subsidy cut, which caused fuel prices to soar as much as 57 percent for the highest grade of gasoline and 35 percent for lower grades. It has been easy for drivers to convert to this up and coming technology: Cairo hosts the first CNG service station in Africa and the Arab world. There, car owners can have their vehicles converted to run on natural gas for about LE 400 with the option of payment in installments for lower‐income drivers. Over 100,000 vehicles in Cairo run on this technology currently, with government‐owned natural gas company Egas pushing to have 300,000 by 2012. Accompanying this rise in natural gas fuel usage, there are plans for a three‐fold increase in the number of NGV fueling stations to 390 locations around the country. While about 70 percent of the vehicles run on natural gas are taxis, about 17 percent are privately owned vehicles, indicating a broad trend towards natural gas usage across income groups and vehicle models.

385 One On One: Gm Egypt Goes For A Bigger Piece Of The Pie

Even though car sales are down, General Motors Egypt (GME) is going forward with plans to launch five new vehicles this year, has just signed a sponsorship deal with Al‐Ahly and is apparently recruiting employees. While that may seem overly aggressive given the current economic environment, GME’s Chairman and Managing Director Rajeev Chaba said it’s all part of a strategy to combat the slowdown. Consumers can expect to see a locally produced SUV called the Chevrolet Captiva come September. GME is also launching the Chevrolet Cruise in May, an imported unit set to become the company’s “image maker in the car segment.” This model will come to Egypt before some of General Motor’s “bigger markets like Saudi Arabia and Dubai,” a first for local consumers, he said. The Opel Corsa will be launched by the end of the year as well as another vehicle that will supplement their pick up truck in Egypt by the third quarter of 2009. This, he said, is giving GME “new niche areas,” which may explain why the company’s market share is up while sales are going the opposite direction. GME already has the largest chunk of the market, and it’s confidently eyeing an even bigger piece of the pie. The carmaker ended 2008 on top with a 23 percent share of the market, up from 18 percent the year before. That figure has jumped to more than 26 percent in the first two months of this year, according to company figures. The growth was spurred by an expanded network of sales points, several new products and higher production capacity thanks to a new paint shop. GME locally produced 42,000 units last year, up from 27,000 in 2007.

Social front

Hamas Members Stopped From Smuggling Cash To Gaza

Two Hamas officials returning from Egypt were caught trying to cross the Gaza border Tuesday with nearly $850,000 stuffed into candy tins, an Egyptian security official said. Gaza's Hamas rulers are dependent on the smuggling of cash and goods to keep their government afloat because the coastal territory has been subject to an embargo since the group took control there in June 2007. The two Hamas members were in Egypt with a delegation taking part in Egypt-mediated reconciliation talks with rival Palestinian factions. The talks have so far failed to produce an agreement on the formation of a unity government that would include Hamas and the more moderate Fatah movement that it ousted from Gaza. In response to the Hamas takeover of Gaza, Israel and Egypt have kept the territory's borders sealed to all but a trickle of aid and supplies, forcing Hamas to smuggle cash across the border. Under Egyptian law, it is illegal to leave the country with more than $10,000 in cash. Authorities also confiscated two generators, a night vision scope and mobile phones, the official said. Hamas will be allowed to deposit the money into an account in Egypt, but likely won't be able to access the funds from Gaza. Arab

386 banks have generally refused to transfer money to Gaza for fear of running afoul of the United States, which considers Hamas a terrorist organization. The two men stopped Tuesday were not arrested and denied knowing what was in the candy tins, saying they were just told to carry the goods into Gaza by Hamas leaders in Egypt, the official said. There was no immediate comment from Hamas.

Israel and Palestine

Political front

Israeli, PA lawmakers can't agree on peace declaration

MKs and Palestinian lawmakers failed to agree on a draft joint declaration aimed at promoting cooperation, peace and reconciliation, at a meeting with European parliamentarians in Paris. The discussion was part of a forum launched in Rhodes last June by a Middle East subcommittee of the Council of Europe and its Parliamentary Assembly to facilitate the peace process without interfering in negotiations. The forum is meant to create a climate of confidence at the parliamentary level, define areas where cooperation is possible and identify obstacles to peace that can be removed immediately.

MK Danny Ayalon (Israeli Beiteinu) represented the Knesset at the meeting, while Palestinian MP Abdullah Abdullah (Fatah) was among those who represented the Palestinian Legislative Council. The actual members of the new Knesset's delegation will be chosen in the coming weeks. Ayalon said the two sides disagreed about the content of the declaration. The Palestinians wanted to introduce a clause that said that a settlement would be based on the pre‐1967 borders, but the Israeli side rejected this, he said. Abdullah said that the borders should be based on the pre‐1967 demarcations. Because no declaration was adopted, the issue would be revisited at a meeting next month in Strasbourg, officials said. The current proposed declaration says the participants affirm their conviction that only a two‐state solution based on previous signed agreements would put an end to the Israeli‐Palestinian conflict.

Barak: Labor must 'seriously consider' Likud coalition offer

Defense Minister Ehud Barak said that his Labor Party should "seriously consider" Likud Chairman Benjamin Netanyahu's offer to join the coalition.

"The diplomatic, security, economic and social challenges facing Israel make it imperative the Labor Party's hierarchy seriously consider [Netanyahu's invitation]," Barak's statement read. Agriculture Minister Shalom Simhon on Wednesday urged Barak to assemble the party's central

387 committee to reevaluate Netanyahu's offer. Nevertheless, Simhon said, he was "aware of the problematic aspects of serving alongside Avigdor Lieberman," referring to the rightist chairman of Yisrael Beiteinu, who has raised the ire of Israeli Arabs with his 'no loyalty, no citizenship' campaign. But Labour's secretary‐general, Eitan Cabel, said most members would likely oppose joining a coalition including far‐right parties Netanyahu has teamed up with, who have opposed U.S.‐sponsored talks with Palestinians for a two‐state solution. Likud and Labor officials said earlier Wednesday that Netanyahu and Barak were in the midst of secret coalition negotiations. It appeared as though Netanyahu offered Barak the defense portfolio as well as four other ministerial positions in the incoming government. Barak's covert talks have been stirring discontent within the party ranks. MK Shelly Yachimovich said Wednesday that her fellow "Labor members do not need Netanyahu's assurances or 'Rabbi' Avigdor Lieberman's kashrut approval. Netanyahu's statements were obviously meant to sanction membership in the worst coalition in the country's history." On Wednesday morning Netanyahu's office released an announcement urging the

Labor Party to join a national unity government.

Israel rejects revised draft of Durban II statement

A senior Foreign Ministry source said that Israel rejects the latest draft of the closing statement for the "Durban 2" anti‐racism conference, despite revisions aimed at dropping direct criticism of Israek. While all direct references to Israel and the Israel‐Palestinian conflict have been removed in an attempt to keep the European Union from boycotting, it still implicitly singles out Israel. "The first clause in the new document reaffirms the declaration of Durban 1,' which calls Israel a racist state and the change is cosmetic only. The essence remains the same," the official said. "This is a diplomatic ruse intended to blur matters and introduce criticism of Israel by the back door."The statement will be issued at the end of the second United Nations sponsored World Conference Against Racism, Racial Discrimination, Xenophobia and Related Intolerance, to be held in Geneva on April 20.

The previous version of the "Durban 2" closing statement led the United States, Canada and Italy to announce they would be boycottingt the conference. Other EU countries, as well as Australia and New Zealand, also threatened to boycott. The edited version was crafted by a committee headed by Russia, with the goal of preventing the boycott.

While all direct references to Israel and the Middle East have been eliminated, the Foreign Ministry says it references the closing statement from Durban 1, which was held in 2001 in Durban, South Africa. That document presented Israel as an "apartheid state," and singled out Israel as racist. Israel and the United States walked out of the 2001 Durban conference to protest draft conference texts branding Israel as a racist and apartheid state language that was later dropped. The Foreign Ministry on Tuesday instructed its envoys to continue asking their host countries to boycott the conference

388

Likud and Yisrael Beiteinu initial coalition deal

Prime Minister‐designate Benjamin Netanyahu was speeding up his coalition negotiations and, close to midnight Sunday, initialed an agreement with Yisrael Beiteinu.

Yisrael Beiteinu's Avigdor Lieberman is expected to be appointed foreign minister, while the party's MK Yitzhak Aharonovitch is due to become internal security minister. Yisrael Beiteinu will also receive the tourism, infrastructure and immigrant absorption portfolios, as well as chairmanship of the Knesset Constitution, Law and Justice Committee, which will headed by MK David Rotem.

Lieberman backed down on his earlier condition that Prof. Daniel Friedmanm remain justice minister, and compromised by agreeing to the appointment of Yaakov Neeman to the post. Neeman and Lieberman were said to share a "long‐time mutual appreciation" of each other. Yisrael Beiteinu is seen to have agreed to considerable compromises on many of the issues it had championed during its campaign, including civil unions, a solution to Jewish conversion problems and changes in the system of government.

The agreement with Netanyahu is to include a clause saying that it is valid only for a narrow government, the expansion of which would necessitate a new arrangement.

The negotiations were conducted on two tracks, one involving personal daily telephone conversations between Netanyahu and Lieberman, the other through negotiating teams. The latter contacts were particularly helpful in smoothing out differences on matters of religion and state that might have caused a rift with Shas. Meetings were scheduled to take place Monday with the Shas negotiating team, to flesh out the final details of an agreement, including allocation of portfolios to the religious party.

As the initial deadline allowed to Netanyahu to form a government was fast approaching, speculation was rife whether a national unity government was still possible. Sources close to the prime minister‐designate said he intends to complete negotiations by Thursday or next Monday at the latest; some sources believe the rush to form a right‐wing government might be another means to pull Kadima, and possibly even Labor, into the coalition.

Hamas and Fatah agree to hold elections by January 2010

389 Rival Palestinian groups agreed Sunday that general elections in the West Bank and Gaza should be held by January 2010, but remained at odds over the terms of a joint government, a negotiator said. Fatah and Hamas, the largest two Palestinian groups, differ fundamentally on how to deal with Israel. Hamas believes in armed struggle, though it is willing to consider a truce, while Abbas backs negotiations Israel The talks, mediated by Egypt, had aimed to lay the groundwork for a transitional government followed by presidential and legislative elections. Delegates to the talks were trying to end divisions that deepened when the

Islamic militants of Hamas violently took control of Gaza in June 2007, leaving the more moderate Fatah movement in charge only of the West Bank. The formation of a unity government would also clear the way for desperately needed aid to be delivered to the Gaza Strip. The disagreements between the rivals has held up some $5 billion in international aid for Gaza, which was devastated by Israel's three‐week offensive to stop Hamas rocket fire. Hamas and Fatah had been talking in Cairo since last Tuesday. But when the talks ended last night, significant differences remained, especially on the timing and supervision of elections and whether a power‐sharing deal would see Hamas become part of the Fatah‐led Palestine Liberation Organization. The PLO is the body that has signed previous agreements with Israel, and the inclusion of Hamas could give it a say over the future of negotiations. Several delegates to the talks detailed the main sticking points earlier Sunday. They agreed to speak only on condition of anonymity because the talks were then still in progress. Fatah wanted to form a government of technocrats under a political program that stated clearly that it fully complies with past PLO agreements with Israel. That would amount to Hamas' recognition of Israel. Hamas, however, refused to abandon the call in its founding charter for Israel's estruction. It was willing only to say it respects PLO agreements with Israel. This disagreement was confirmed by Hamas spokesman Fawzi Barhoum and Samir Ghosheh, a member of the PLO's executive committee. The two sides have tried to solve this thorny issue through different wordings before, including in the short‐lived unity government of 2006, but the results fell short of demands by the international community that Hamas clearly recognize Israel.

There were also disagreements over how to organize presidential and legislative elections, the delegates said. Hamas wanted a new, more independent electoral commission that represents all Palestinian factions.

Imprisoned Fatah and Hamas leaders stress need for success of internal talks

Jamal Huwail, deputy member of the Legislative Council of the Fatah movement, stated from prison that no choices have been presented to the reconciliation committees. Only a comprehensive national agreement will end the problems and lay the foundations to begin a new phase in the process of achieving goals and rights that depend on national unity and ending divisions. In an interview from an Israeli prison in the Negev, Deputy Huwail stated that Hamas has a clear message to the negotiators, in particular the forces of the Fatah movement; that we have all the assurances needed for success in unity talks, and that he hopes the Hamas

390 movement can work together with other Palestinian factions to overcome obstacles and find solutions to issues drawing on a united spirit of Palestinian people's rights and struggles. Representating prisoners for Palestinian parliamentary reform, he said that Palestinian people dream of achieving national reconciliation to strengthen its internal front, enabling it to maintain strength in the face of the occupation with challenging policies rather than increasing dissent between Palestinian factions and groups.

Al Ahmad: No agreement on political agenda of unity government

The Palestine New Agency, WAFA, reported that the head of Fateh bloc at the Palestinian Legislative Council, head of Fetah delegates to internal dialog, Azzam Al Ahmad, stated that talks on the political agenda of the upcoming unity government did not lead to an agreement”.Al Ahmad added that the only issue that was achieved is that the government should be a unity government, and that this government will be transitional until new elections are conducted and a new government ifs formed. He also said that this government would be formed by the factions and independent figures. But the political section of the agreement remains unsolved as the issue of the government's agenda and its political program are considered the most important factors, yet need further talks to be settled. The issues of elections and elections law, in addition to the security file remained unresolved in spite of extended talks. Al Ahmad also stated that a committee was formed to prepare for further comprehensive talks, and that this committee prepared a statement detailing the points of agreement and disagreement, but Hamas demanded the remove a phrase which referred to the Palestinian Liberation Organization as the sole representative of the Palestinian people.

Barhoum: Factions agree on transitional unity government

The Palestinian Information Center, affiliated with Hamas, reported on Wednesday at night that Fawzi Barhoum, spokesperson of Hamas, said that Palestinian factions managed to agree on forming a transitional unity government which will be operative until elections are held. He said that the government would be based on the basic Palestinian law, and would be performing its duties until a new government in elected and formed. Yet, Barhoum also said that talks are still ongoing regarding the political agenda of the government and its ministerial composition. He explained that the higher committee of the Palestinian factions, continued its talks in Cairo after the five committees that ran the internal dialog submitted a report on the points of agreement and disagreement. The talks aim at attempting to find a solution to the unresolved issues, especially on reforming the Palestinian Liberation Organization (PLO), the government, security and the elections. Barhoum thanked all parties who helped in the talks, and thanked Egypt

391 for hosting the dialog and for and for its ongoing efforts to achieve Palestinian national unity.

Internal talks approach an agreement

Palestinian sources reported morning that internal Palestinian talks, held under Egyptian mediation in Cairo, are nearing a decisive stage. The sources added that Egypt is currently consulting with a number of Arab, regional and International countries in order to support the outcome of the talks to achieve reconciliation, and to move towards a truce, rebuilding Gaza, transitional government and other issues. Egypt is hoping that talks would end by Thursday in order to declare a deal on March 22, before the Arab summit is held in Qatar. Egyptian president, Hosny Mubarak, will most likely sponsor an event celebrating the agreement. The celebration would include president Mahmoud Abbas, members of the Quartet, secretary‐ general of the Arab League, secretary‐generals of Palestinian factions, and several other local and foreign officials. Dr. Nabil Shaath, member of the Central Committee of Fatah, and member of Fatah's team in Cairo, said that Palestinian leaders will hold extensive meetings in order to agree on a number of issues, mainly government agenda, elections law, and the means to enable Hamas and the Islamic Jihad to join the Palestinian Liberation Organization (PLO). Shaath added that another meeting will take place on Tuesday at night between delegates of Hamas and Fateh, and will be followed by a meeting with factions that are members of the PLO. He also said that if all issues were not resolved on Tuesday, the factions would meet again on Wednesday. Shaath stated that there are two main issues that remain unsolved: first, the government, and whether it should it be formed by the Palestinian factions, or independent figures named by the factions; and second, the agenda of the government, and whether it should be committed to PLO agreements or the Mecca deal. Furthermore, Hamas prefers a government formed by factions, but also includes independent figures.

Factions agree to hold elections by January 25, 2010

Palestinian factions holding internal talks mediated by Egypt agreed on Sunday to hold legislative and presidential elections by January 25, 2010. Talks were described as positive, yet some issues remain unresolved. Dr. Ali Jarbawi, an independent member of the Palestinian Liberation Orgzniation (PLO) committee in charge of internal talks, and Waleed al-Awad, member of the political bureau of the leftist Palestinian People party, said that a comprehensive agreement on the remaining issues will be reached sooner or later. In an interview with the Maan News Agency, Jarbawi stated that some issues regarding the new government and its political agenda, as well as other issues, still need further talks to be resolved. He denied reports claiming that internal talks had reached a dead-end, and added that all factions are willing to garner a deal on all the relevant issues. Jarbawi also said that the new government needs to adopt an agenda that its acceptable to Palestinians and the international community. As for the security devices, Jarbawi stated that some issues remained unsolved, but added that the issues in question are still subject

392 to negotiations, and will eventually be resolved. Hanai al-Masry, a member of the government's committee in charge of Cairo talks, told Maan that Hamas expressed a willingness to give up its demands on the agenda of the new government, as long as the government remains committed to national unity. Hamas also insists to have the right to name 10 ministers who are not members of the movement, while Fatah would name eight ministers. This is in addition to six ministers who would be named by the rest of the factions. Al-Masry added that the proposal of Hamas was rejected.

He further said that the government agenda includes seven main points, some of them already approved:

1- Shape of the upcoming government: unresolved;

2- Responsibilities of the government: resolved;

3- Government agenda: unresolved;

4- Resolving all issues that caused internal divisions and conflicts: resolved;

5- Achieving an agreement on reopening institutions shut down in Gaza and the West bank: resolved;

6- Determining real measures to unite Gaza Strip and West Bank institutions: unresolved; and

7. Resuming the work of the Palestinian Legislative Council and to resume all of its duties: unresolved.

As for the security devices agenda, al-Masry said that the main obstacle now is regarding the Higher Security Committee, which will be in charge of the security devices during the transitional period.

New group in Israel vows to target released detainees

Israeli sources reported on Monday that a new group formed by relatives of Israelis who died in Palestinian attacks is preparing to target Palestinian detainees who would be freed by a prisoner exchange. Israeli newspaper, Yedioth Ahronoth, reported on Monday that the group is preparing for what it calls “the day after the release of Shalit”, when they would attempt to locate and target freed Palestinian detainees. The paper added that the group has already held several meetings and is formulating what it calls “eye for an eye” policy. The paper also said that the group is led by Attorney Meir Schijveschuurder and his brother Shvuel. They lost their parents and three siblings in a suicide bombing that took place at the Sbarro pizza parlor in Jerusalem in 2001. They have contacted relatives of Israelis who died in Palestinian attacks, and collected donations from donors in Israel and abroad. They said that they want to collect

393 intelligence information on “detainees with blood on their hands” in order to pursue them wherever they are, even if they are abroad. Schijveschuurder stated that, for instance, the group knows that the parents of a Palestinian involved in the Sbarro bombing own a pizzeria in Jenin and knows their address. The Yedioth Ahronoth quoted Schijveschuurder stating that a female detainee, who is believed to be in charge of organizing an attack in Israel is on the list. He also said that the freed detainees who will remain in the Palestinian territories would be targeted “under the customary law there; eye for an eye”, Yedioth Ahronoth said. He stated that the moment Israel releases those detainees, his group will start targeting them. One of the organizers of the group said that $5 million is needed to complete the tasks at hand, and added that detainees who leave the country would by subject to lawsuits in the countries they chose to live in.

Palestinian unity talks failing

Reconciliation talks between rival Palestinian factions Hamas and Fatah in Cairo this week yielded an agreement to hold national elections early next year. The two sides, however, remain deadlocked over the proposed terms of a national unity government.

"Talks are at a standstill on the issue of the government," a member of the Palestinian delegation was quoted as saying Sunday on 15 March. The latest round of talks began late last month in Cairo with preliminary meetings between Fatah and Hamas representatives, although it was later broadened to include 11 additional Palestinian factions. Five committees were devoted to core issues of reconciliation and goodwill, formation of a unity government, national elections, Palestine Liberation Organization (PLO) reform and the restructuring of Palestinian security services. Ever since Hamas won an outright majority in 2006 Palestinian parliamentary elections, the two factions have pursued bitter rivalry that has brought intermittent fighting and tit‐for‐tat arrests. Mutual hostility reached the boiling point in the summer of 2007, when Hamas seized control of the Gaza Strip from the Fatah‐led Palestinian Authority (PA) in a pre‐emptive coup. Since then, Hamas has governed the Gaza Strip, while the US‐backed PA has continued to control the West Bank from Ramallah under PA President Mahmoud Abbas. Further complicating the situation, Israel and Egypt ‐‐ with the PA's blessings ‐‐ have both closed their borders with the Hamas‐run enclave, geographically isolating it from the rest of the world. The new round of talks has seen some breakthroughs. On 12 March, compromise was reportedly reached on the issue of the Palestinian security services. And on Sunday (15 March), officials close to the negotiations announced that factions had agreed to hold Palestinian presidential and legislative elections by 25 January 2010. "There has been relative progress on a number of issues," Hamas spokesman Fawzi Barhoum was quoted as saying Tuesday, 17 March. "Achievements have been made on essential questions." On the terms of a national unity government, however, the two sides have

394 reportedly hit an impasse. Fatah insists on a government comprised of independent "technocrats," which will adhere to political conditions laid down by the so‐called quartet (the US, EU, Russia, and the UN). These conditions include recognition of Israel, compliance with past agreements signed by the PLO, and renunciation of violence, that is, armed resistance. "Hamas is being asked to support a government of independents that would meet the quartet's demands, including recognition of Israel," Mohamed Bassyouni, former Egyptian ambassador to Israel and current head of the committee for Arab affairs in the Shura Council (upper house of parliament) told IPS. Hamas, for its part, wants a majority share in any new government reflective of its sweeping parliamentary victories in 2006. The Islamist group also wants to appoint the prime minister, but is not insisting he be a Hamas member. More importantly, Hamas adamantly refuses to recognize the self‐proclaimed Jewish state, which it views as illegitimate, and cleaves instead to a policy of armed confrontation. Although described as a "terrorist organization" by the US and Israel, Hamas ‐‐ and its commitment to resistance ‐‐ received a robust mandate from the Palestinian public in the last parliamentary election. Fatah, by contrast, is committed to holding negotiations with Israel in hope of reaching a viable, mutually acceptable Israeli‐Palestinian peace agreement. Until now, however, Abbas's frequent "peace talks" with Israeli counterparts, mandated by the 2007 US‐sponsored Annapolis Summit, have failed to yield any gains whatsoever for the Palestinian side. According to Muslim Brotherhood, which represents Egypt's largest opposition movement and is ideologically close to Hamas, there is little chance of Hamas consenting to recognize Israel ‐‐ particularly in the wake of Israel's recent three‐week assault on the Gaza Strip. "After the failure of the war on Gaza to destroy Hamas, the notion of armed resistance ‐‐ as opposed to fruitless negotiations ‐‐ was vindicated among the Palestinian public," leading Muslim Brotherhood member Essam al‐ Arian told IPS. "As it now stands, the resistance factions, especially Hamas, will never recognize the Zionist state without exacting an extremely heavy price in return." "Even if Hamas did acknowledge the state of Israel, other factions would spring up to take its place to reject the notion of recognition," he added. According to al‐Arian, the idea of a government program based on negotiations with Israel ‐‐ after the failure of Abbas's peace talks to produce any results ‐‐ remains a nonstarter for Hamas. "The team in Ramallah and its program of negotiations had its chance, and failed," he said. "The Palestinian people and factions will absolutely never repeat the PA's experiment of recognizing Israel without receiving major concessions in return." "Ramallah needs to respect the choice of the Palestinian people, who overwhelmingly support Hamas and its policy of resistance, according to all recent opinion polls," said al‐Arian. Despite these fundamental differences, commentators say that the imminent rise of a hard‐right ‐‐ some would say extremist ‐‐ Israeli government has made the need for Palestinian unity all the more pressing.

Economic front

395 Geo strategic front

Assad: Olmert agreed to give up all of the Golan

Prime Minister Ehud Olmert agreed to withdraw from all of the Golan Heights during indirect peace talks with Damascus, Syrian President Bashar Assad told the Italian newspaper La Repubblica. In an interview which appeared in the newspaper's Wednesday edition, Assad said Israel and Syria were within "touching distance" of clinching a peace agreement.

The Syrian premier told La Repubblica that during the Turkish‐mediated peace negotiations, Olmert indicated to Turkey's Prime Minister, Reccep Tayip Erdogan, that he is ready to relinquish all of the Golan Heights to Syria. Assad added that both sides were very near an agreement, and that all that remained was to finalize last details over the precise route of the 1967 line which would serve as the future border between the two countries. As both sides reached the final stages of talks, Olmert requested a pause in the talks so as to consult with his government. Shortly afterwards, Israel launched its offensive in the Gaza Strip. The Syrian leader said he was concerned over the future of peace talks given the make‐up of Israel's next government, which in all likelihood will be formed by Benjamin Netanyahu. "I see the finish line moving further away," Assad said. "I am not fearful of Netanyahu, but from the fact that Israel voted for a rightist government. This is the biggest hurdle to peace." Assad also said he hoped to meet U.S. President Barack Obama and expressed his willingness to help mediate between the West and Iran. Asked about meeting Obama, Assad said: "Yes, in principle. It would be a very positive sign. But I'm not looking for a photo opportunity. I want to see him, to talk".

Obama has been reviewing U.S. policy toward Syria, including whether to return an ambassador to Damascus. Earlier this month he sent two envoys to Damascus earlier this month, where in a change of tone after years of animosity with Syria, one of the officials said they had found "a lot of common ground".

Palestinian delegates leave Cairo without resolving all major issues

Palestinian and Arab sources reported morning that most of the Palestinian delegates holding Egyptian‐mediated internal talks have left Cairo without resolving some major issues obstructing a unity deal among the Palestinian factions. The delegates decided to transfer the unresolved issues to the Higher Committee in hope that it could bridge the gaps on major issues. The talks were held by five committees formed by officials of 13 Palestinian factions and independent figures who held marathon talks over the past seven days. One of the positive outcomes of the talks was agreeing to form a Legal Administrative Committee that would be in charge of follow‐

396 up and preparing a report within four months. The committee will be in charge of attempting to resolve unresolved issues, and will examine all legal and administrative aspects that might make a breakthrough. One of the main issues that remain unresolved is Hamas' stance of rejecting the Palestinian Liberation Organization (PLO), which remains central to all political activities. Meanwhile, member of Fateh's Central Committee and its representative to Cairo talks, Nabil Shaat, said that the Government Committee managed to achieve positive developments. Shaath added that representatives of several Palestinian factions will hold a meeting later on in order to overcome the remaining obstacles that obstruct the forming of a unity government. According to the Fatah official, conflicting issues surround the agenda of the upcoming government, the elections system and finding a formula that would enable Hamas and the Islamic Jihad to join the PLO. But some sources say this does not mean halting the talks, especially considering senior Egyptian sources stated that serious talks would be resumed directly after the Egyptian Intelligence Chief, Omar Suleiman, returns from Washington. The Maan News Agency reported that Suleiman met with the US Middle East Envoy, George Mitchell, and the acting Deputy Assistant Secretary of State for Near Eastern affairs, Jeffrey Feltman in Cairo. The meeting came in an attempt to convince the United States to ease its stance regarding the anticipated Palestinian unity government. The US and Israel have repeatedly said they will not recognize a Palestinian government that includes Hamas. On the ground, a government that excludes Hamas will not succeed even if supported by the United States. In the last Palestinian legislative elections, Hamas won the majority of the seats of the Palestinian Legislative Council, in addition to an overwhelming victory in municipal elections. Later on, Israel kidnapped most of the elected legislators and officials. Most of them, including the head of the Legislative Council, Dr. Aziz Dweik, remain imprisoned.

Egypt says it detained Hamas officials concealing money at Rafah terminal

Israeli newspaper Haaretz reported that Egyptian security men detained two Hamas officials at the Rafah border terminal as they were heading back to Gaza while concealing nearly $850,000 USD in candy boxes. Haaretz reported that the two officials were heading back to Gaza after participating in internal Palestinian unity talks. The security forces stopped a bus carrying the two officials and officials of other Palestinian factions and discovered the concealed money after searching the bus. According to Egyptian law, the amount of cash allowed through the border cannot be more than $10,000 USD. Thus far Hamas has not commented on the report. Last month, a Hamas official was stopped at the border carrying bags that contained $12 Million USD. The money was confiscated, the Maan News Agency reported.

Syrian president says peace with Israel still possible

Syrian president, Bashar Asad, stated in an interview with the Italian newspaper, La Repubblica, that indirect Turkish-mediated talks with Israel managed to bring the two countries very close to an agreement, especially after Israel's outgoing Prime Minister, Ehud Olmert, stated that he is willing to withdraw from the Golan Heights. Asad added

397 that the recent Israeli elections brought an extreme right wing government to Israel, a reality that will likely have negative implications for future peace talks. The Syrian president stated that Olmert told the Turkish Prime Minister, Recep Tayyip Erdogan, that Israel would be willing to withdraw from the Golan Heights, and added that the remaining issue is agreeing on details regarding the border line. He stated that the two leaders were very close to having direct talks, especially when Asad was on the phone with Erdogan while Olmert was having dinner with the Turkish official in another room. Commenting on the possibility of resuming talks with Israel, Asad said that this issue is possible in principle, but Syria will not rely on the incoming right-wing government in Israel. The Syrian president further said that Israel must implement the related UN resolutions, must accept the Land for Peace principle and the agreement of the Madrid Conference. Referring to the role of the U.S in the region, Asad said that the country plays an important role, but, so far, has not been willing to put any significant pressure on Israel. Asad praised US president, Barack Obama, and said that he managed to take some encouraging steps, and added that Obama still needs to work on restoring the reliability of the United States in foreign affaris. He praised the decision of Obama to shut down Guantanamo, and the US President's statements regarding a withdrawal from Iraq.

Social front

Jordan

Political front

Ahmad Tbeishat elected president of Jordan Bar Association

Elections at the Jordan Bar Association (JBA) ended with a surprise victory for independent Ahmad Tbeishat who managed to beat his Islamist and nationalists rivals, association figures showed. Tbeishat garnered 1,461 votes, while the Islamist candidate Ameen Khawaldeh came second with 1,371 votes and veteran lawyer Hussein Mjalli, who is supported by the nationalists, secured 1,048 votes in a second round of voting. The polls were held on Friday, with voters returning to the ballots for a second round, in accordance with the association’s bylaws, after none of the five candidates for the presidency managed to secure a majority of the total number of votes. Two other candidates for the presidency, Bashar Khalifa and Fathi Abu Nassar, withdrew before the second round started. Meanwhile, the final results for elections of the association's 10- member council indicated that none of the three female candidates were successful. Although the Islamist movement lost the presidency, they have five council seats, compared to three seats for the nationalists and two for the independents, according to association officials.

398 JBA council members

Name Votes Yahya Abu Aboud 1,857

Ibrahim Abu Ghareibeh 1,843

Abdul Wahab Ajawi 1,818

Samih Khreis 1,667

Nasser Kamal Nasser 1,654

Bassam Freihat 1,637

Rami Shwawrah 1,609

Samir Kharfan 1,663

Mutasem Abu Ruman 1,500

Iyad Albu 1,440

Muslim Brotherhood calls for political dialogue

The Muslim Brotherhood on Monday called for "a serious and honest dialogue” amongst all political actors regarding political reform in the Kingdom. "Political reform is a necessity that cannot wait. The path to reform is a comprehensive national dialogue at the popular and official levels, and on the basis of political partnership," said the statement, released at the end of a two-day regular meeting of the movement's shura council. The shura council, which includes 51 members and the movement’s overall leader, is considered the most influential body in the Muslim Brotherhood. "Dialogue will strengthen the nation against all conspiracies that target Jordan and its people," the Islamist movement said in the statement made available to The Jordan Times yesterday. Late last month, the Cabinet announced that it will launch a dialogue with all political, economic and media segments of society. In parallel with the dialogue, the government said it will revisit all laws governing political work in the Kingdom as part of the political reform process. Also in the meeting, the shura council approved internal reform regulations regarding the movement’s operations in a bid to "achieve gradual reform". During the council assembly, which was held March 12-13, the Islamist movement also discussed reconstruction efforts in Gaza and called for further humanitarian support to the coastal enclave.

Committee formed to draft Red‐Dead Canal law

The government has formed a committee to draw up a draft law pertaining to the multimillion-dollar Red-Dead Canal Project, a source at the Ministry of Water and

399 Irrigation said. The committee was formed in light of questions about whether the project should be governed by the Jordan Valley Authority (JVA) law or that of the Aqaba Special Economic Zone Authority (ASEZA), said the official, who requested anonymity, given that the proposed canal will run through both authorities' jurisdictions. Citing the JVA law, an official at the agency said the Dead Sea area currently falls under the jurisdiction of the JVA. But Wadi Araba, the route of the canal, falls under ASEZA’s jurisdiction. Deputy Hazem Al Nasser (Balqa, 1st District) lauded the government's decision, saying a draft law is a good step forward for the national venture and will help focus attention on it. If the project has its own law, the lawmaker said, it will be ensured the attention and independence it needs. However, MP Mubarak Abu Yameen, who chairs the Lower House Legal Committee, differed, saying there was no need for a separate law for the scheme. The project, currently undergoing a feasibility study as well as assessments of its social and environmental impact, is among the country's top priorities in the water sector. The multipurpose project is part of international efforts to raise water levels of the Dead Sea, which has been shrinking at the rate of one metre per year, largely due to the diversion of water from the Jordan River for agricultural and industrial uses. In addition, the project proposes to help the Kingdom close its annual water deficit of about 400 million cubic metres, and may also generate electricity, pending the results of the feasibility study.

Geo strategic front

'Majali to take over presidency of Euro‐Med Parliamentary Assembly’

Lower House Speaker Abdul Hadi Majali will preside over the Euro-Mediterranean Parliamentary Assembly (EMPA) until March 2010, taking over from Hans-Gert Pottering, a parliamentary official said. The announcement will be made at a meeting for EMPA members scheduled to take place in Brussels today, according to Lower House Media Adviser Hamdan Hajj. “Jordan’s participation will focus on some local issues in addition to the suffering of Gazans following the devastating Israeli attacks,” Hajj told The Jordan Times, adding that Middle East issues will also be on the agenda. He added that the Jordanian delegation will also urge EMPA members to help find solutions for key economic, political and social issues in the region. EMPA, which replaced the Euro- Mediterranean Parliamentary Forum, was set up in 2003 to monitor the Barcelona Process and the implementation of Euro-Mediterranean association agreements. The purpose of the EMPA is to provide parliamentary stimuli for the development of cooperation between countries of the EU and the Mediterranean region, adopt stances on the Mediterranean partnership and implement association agreements, as well as issue recommendations and declarations for deliberation at Euro-Mediterranean ministerial conferences.

Ban on Chinese dairy products extended

400 The Jordan Food and Drug Administration (JFDA) on Monday extended a ban on the import of Chinese dairy products. Last year, the administration suspended the import of Chinese milk products after tainted milk powder was found to be linked to the deaths of two infants and the illnesses of more than 1,200 others in China, JFDA general director, Mohammad Rawashdeh, told The Jordan Times yesterday. He added that the under decision, which went into effect in mid-September, the entry of Chinese dairy products into Jordan was suspended for a three-month period, pending safety assurances from China. The US Food and Drug Administration (USFDA) issued an advisory last September alerting Asian and ethnic markets across the United States that infant formula produced in China may have been contaminated. The source of contamination was linked to a chemical substance called melamine used in the production of the formula, which has been linked to kidney problems and kidney stones in babies in China. The industrial contaminant, a byproduct of plastic manufacturing that can be used to mimic high-protein additives such as wheat and rice gluten, was also linked to the death of thousands of dogs and cats in the US in 2007.

'Canadian parliament likely to okay FTA’

The Jordan-Canada Free Trade Agreement (FTA) is expected to be endorsed by the Canadian parliament soon, a senior Canadian parliamentarian said. The deal, which is to be the first between an Arab country and Canada, is expected to be ratified by both parliaments this year and represents a sign of growing relations between the two countries, according to Canadian Liberal MP and foreign affairs critic Bob Rae. When finalised, the FTA is expected to secure Jordan preferential trade conditions including full exemption from customs duties for goods of Jordanian origin entering the Canadian market, except for a list of 97 agricultural products. In return, Jordan will reduce customs duties on Canadian products over a transitional period of five years. Rae, who is currently on a two-week tour of the region, met with Prime Minister Nader Dahabi yesterday to discuss the impact of the global financial crisis on the two countries. He also met with key parliamentarians and Minister of State for Media Affairs and Communications Nabil Sharif. Despite fallout from the global economic turmoil, Rae said “huge” opportunities exist for trade between Jordan and Canada, which he said could increase “tenfold” with the passing of the FTA. Jordanian exports to Canada currently stand at $15 million annually. Canada offers expertise in infrastructure, mining, services and higher education, while opportunities exist for greater cooperation in agriculture and food production in addition to investments in the Kingdom’s pharmaceutical industry.

S. Korea PM due in Kingdom today

An official South Korean delegation headed by Prime Minister Han Seung-soo was due to arrive in the Kingdom early today for bilateral talks. The visit is aimed at enhancing cooperation between the two countries, the South Korean embassy said in a statement. The delegation, which includes 40 government officials in addition to six Korean businessmen, will meet with Prime Minister Nader Dahabi to discuss cooperation in the nuclear energy field, the Red-Dead Canal Project and the latest political developments in the region, South Korean Ambassador to Jordan Bongkil Shin said in the statement,

401 which was e-mailed to The Jordan Times. Dahabi met on Thursday with a parliamentary delegation from South Korea and discussed Korean contributions to the Red-Dead Canal Project and the planned nuclear power plant. During the meeting, the premier proposed establishing a joint committee chaired by the prime ministers of both countries to ensure active collaboration on these projects. The parliamentarians said they would urge the Korean government to help Jordan in implementing major water projects, including the Disi Water Conveyance Project and the Red-Dead Canal Project.

Kingdom seeks renewal of agriculture deal with Sudan

A government delegation will visit Sudan in mid-April to discuss extending the 2009 deadline for the implementation of the stalled Jordanian agricultural megaproject. Agriculture Minister Saeed Masri, who will head the delegation, told The Jordan Times on Tuesday that the government is keen to complete the project, which would help address the Kingdom’s food security needs, adding that the delegation will also include private sector representatives who have shown interest in the project. The Jordanian side hopes to renew the deal for another 15 years, the official said. In 1998, the government signed an agricultural protocol with the Sudanese government which entitles Jordan to utilise vast fertile lands on the banks of the Nile to rear livestock and grow crops. In early 2008, the governor of the Nile River State distributed more than half the land included in the agreement to the locals in the area as the plan did not materialise a decade after the deal was signed, leaving Jordan with around 87,000 dunums to utilise. However, due to the government’s reluctance to go ahead with the project, the Sudanese government set 2009 as the deadline for the implementation of the agreement. He added that the other track will involve holding talks with Chairman of the Joint Chiefs-of-Staff General Khaled Sarayreh over the involvement of the Jordan Armed Forces in implementing the project and setting up its infrastructure. The minister pointed out that his talks with the Sudanese government will also include the prospect of increasing the land area included in the project to around 250,000 dunums, as well as assurances from the Sudanese government on the project's safety once it is started. Earlier last year, an Agriculture Ministry official said that the government will sign an agreement with a private company, which comprises four Jordanian firms that decided to implement the project and benefit from the customs exemptions and other incentives provided by the Sudanese government.

The company founders had a firsthand look at the situation of the project in Sudan during a self-initiated, four-day visit that started on August 5, 2008 and met with Sudanese officials who facilitated their access to the location.

Egyptian officials invited to discuss ‘worries’ over canal

Jordan has invited Egyptian officials to visit the Kingdom to address concerns regarding the impact of the Red-Dead Canal Project on Egypt's ecosystems and interests, the project director said. The Ministry of Foreign Affairs sent an invitation to officials from the Egyptian ministry of water resources and irrigation to inform them of the “importance and the goals” of the multimillion-dollar project, Red-Dead Canal Project Director Fayez Tarawneh told The Jordan Times on Monday. The water official said “it seems Egyptians

402 are not well acquainted with the details and goals of the Red-Dead Canal Project, so much so that some think it will be a replacement for the Suez Canal”. Despite several attempts made by The Jordan Times to contact the Egyptian ministry of water resources and irrigation, officials were not available to comment on the visit. Egyptian Minister of Water Resources and Irrigation Mahmoud Abu Zeid has said in previous statements to the press that "Egypt has no official objection over the Red-Dead Canal Project”. Abu Zeid, however, said some Egyptian environmentalists are concerned that the project might affect the marine life and coral in the Red Sea.

Economic front

67 per cent of projects lured in four years did actual business – survey

The total registered capital of investments benefiting from investment laws in Jordan between 2004 and 2007 amounted to JD1.1 billion with accumulative assets of JD4.7 billion, Jordan Investment Board (JIB) CEO Maen Nsour announced. Of the total volume of investments registered in the 2004-2007 period, about 67 per cent have already materialised and started operations or are under establishment and will be opened soon, said Nsour, outlining the results of a field study to follow up on projects benefiting from the Investment Promotion Law. The 33 per cent of the projects registered in the period that were not realised include ventures that did not take off “for various reasons”, others that were frozen “after they were productive for a period of time” and those falling in a third category including investment the JIB could not keep track of “due to the lack of an address or telephone number”, according to Nsour. According to the study, which was

403 conducted in cooperation with the Central Bank of Jordan (CBJ) and the Department of Statistics (DoS) and prepared by Dajani Consulting, a large majority of these projects were in the manufacturing sector with projects in this field accounting for 79 per cent, including the mining, chemical, food, plastic and weaving industries among others. Agriculture, said Nsour, ranked second among sectors benefiting from the law between 2004 and 2007, accounting for 7.2 per cent of the investments tracked by the study. Third on the list was the hotel sector with 2.6 per cent of the projects, followed by the IT sector with 1.7 per cent and the hospital sector with 1.2 per cent. Of the 1, 937 projects benefiting from investment laws between 2004-2007, Amman took the lion's share with 67.6 per cent of the projects located in the capital. Zarqa Governorate came second with 8.8 per cent, followed by Irbid (7.4 per cent), Balqa (4.8 per cent), Mafraq (4.4 per cent), Karak (2.3 per cent), Madaba (1.7 per cent), Maan (1 per cent), Jerash (0.7 per cent), Tafileh (0.7 per cent), Ajloun (0.4 per cent) and Aqaba (0.3 per cent). The study indicated that the number of employees in all projects between 2004-2007 stood at 54,300, of whom 75 per cent are Jordanians with most of the jobs created in the manufacturing and hospital sectors, said Nsour. A total of 75 per cent of the projects registered in the period are owned by Jordanians, he added. CBJ Deputy Governor Kholoud Saqqaf stressed the importance of the study and its results for decision makers, noting that it constitutes a national database of investments.She said that similar studies will be conducted in the future to ensure that information remains up-to-date.

The study also measured investors' impressions of JIB services and the Kingdom's investment environment. Findings indicated that 70 per cent of the investors covered by the study implemented their projects in Jordan in order to enter the local and neighbouring markets.

Financial closure deadline likely to be extended

The deadline for the financial closure of the Disi Water Conveyance Project is likely to be extended to April instead of late this month, a senior water official said. Meanwhile, the European Investment Bank (EIB) agreed to finance the project with $100 million, thus providing the necessary funds to start construction on the project. The official, who asked to remain unnamed, said the project, to be implemented by Turkey’s GAMA company, “may not meet its deadline as more procedures still need to be finalised and will likely be completed in April”. He confirmed reports that the EIB approved during its meeting on Thursday a loan of $100 million to the government, thus raising Jordan’s equity in the project to $400 million. The source told The Jordan Times that the government will keep $100 million of its equity as a “standby amount”, which will be used in case prices of steel and other construction materials priced on the international market increase. The project’s stakeholders requested that the EIB take over the share previously allocated to the International Finance Corporation, which suspended its financial contribution to the project.

Revolving credit fund to finance tourism‐related projects

404 Local communities in the Wadi Rum area are receiving a boost to breathe life into their income-generating projects and tourism-related ventures in the Southern Badia. The USAID/Jordan Tourism Development Project (JTDP) recently conducted a two-day training workshop for board members of the Productive Village Cooperative to benefit from the Development and Employment Fund (DEF). In order to qualify to receive a JD50,000 revolving credit fund to finance microloans for small projects implemented by local residents, 10 board members of the cooperative were trained on managing and applying a credit scheme fund. Under the initiative, funds are loaned to the cooperatives, which are in turn extended to small projects and initiatives in the Wadi Rum and Disi areas to support several tourism-related projects, according to JTDP chief of party Ibrahim Osta. The JD50,000 revolving fund is expected to finance up to 20 products and services ranging from handicrafts and campsites to weaving and jewellery manufacture, as part of the paid interest from the loans go to the cooperative to sustain their activities, he noted.

Social front

Prince Hassan calls for reviving tradition of waqf for education

HRH Prince Hassan has called for reviving the tradition of waqf (religious endowment) for education in order to support research and critical thinking in the Arab world. In a keynote speech at the opening of a conference on “University Development and Critical Thinking” in Kuwait last week, he pointed out that “for centuries in Islamic history, education was financed by religious and charitable endowments and by munificent patrons”. “Al Azhar University, which gave free education and support to countless generations of students, not only from Arabia but from all over the Muslim world, did it all by using funds from awqaf. This came to an end only recently when some governments appropriated the awqaf and the educational system, and people no longer feel that there is any point in donating to education,” the Prince added. “The objectives of a university education should be to instil essential intellectual traits and curiosity in the minds of students and researchers so that they may have intellectual courage instead of intellectual cowardice; intellectual humility instead of intellectual arrogance; intellectual empathy not intellectual closed-mindedness; intellectual autonomy not intellectual conformity; intellectual integrity not intellectual hypocrisy; intellectual perseverance not intellectual laziness; confidence in reason not distrust of reason and evidence; fair- mindedness and not intellectual unfairness,” the Prince said. Prince Hassan also stressed the need for “lateral thinking”, “the kind of thinking that students in liberal arts institutions are encouraged to learn. It is how, and not what, students are taught which shapes the way they understand the world around them”. The Prince also visited several scientific and cultural institutions and met a number of intellectuals and scholars.

Labour Ministry, private sector work to address nursing sector unemployment

405 The Labour Ministry and the Private Hospitals Association (PHA) are working to tackle unemployment in the nursing sector, which currently stands at 5.9 per cent. In order to offset joblessness in the sector, the ministry is implementing a two-year training programme to provide nurses with career experience to better prepare them for future employment opportunities, Labour Minister Ghazi Shbeikat told The Jordan Times in a recent interview. Under the scheme which was initiated in May 2008, the ministry pays half the trainees’ salaries which amount to JD270 for staff nurses and JD180 for assistant nurses, while hospitals pay the remaining amount as well as social security subscriptions, Shbeikat said. After two years of training with selected hospitals, trainees have the opportunity to work full-time at their post or look elsewhere for employment, he added. So far 1,156 nurses have registered in the programme, the minister said, adding that 23 private hospitals agreed to participate in the initiative. According to PHA President Fawzi Hammouri, 400 staff nurses and 100 assistant nurses received training under the programme in its first year. In addition to unemployment, the sector is suffering from a shortage of female nurses, who currently constitute around 56 per cent of the Kingdom’s 17,000 nurses, Jordan Nurses Association (JNA) President Mohammad Hatamleh told The Jordan Times yesterday. To address the shortage, the association agreed with the Ministry of Higher Education to allocate 76 per cent of university seats in nursing faculties for women. Currently, nurses must apply for jobs through the Civil Service Bureau (CSB), he said, noting that by the time the ministry addressed the CSB for the names of 800 job seekers, less than half were available.The annual unemployment rate among nurses in the country stands at around 5.9 per cent, some 1,000 nurses, while 4,000 currently work in Gulf countries, according to the JNA.

Jordan engineers invite public to buy ‘Gaza reconstruction shares’

The Jordan Engineers Association (JEA) on Saturday launched "Gaza reconstruction shares" as part of an ongoing campaign to collect funds necessary for rebuilding the coastal enclave. Launched under the motto "We will get it back more beautiful and powerful", the campaign allows individuals or groups to purchase “shares” as a donation for Gaza reconstruction projects. According to JEA President Wael Saqqa, each JD100 share is equivalent to the cost of building one-half square metre, while a half-share (JD50) would fund a quarter-square metre of construction.

Saqqa called on local institutions and individuals to contribute to the fundraising efforts, noting that at least 5,000 families were left homeless after their houses were destroyed during the 22-day Israeli military offensive. Saqqa, who was appointed last week as president of an Arab commission which seeks to establish a special fund for rebuilding Gaza, said the reconstruction shares aim to support projects deemed urgent by Palestinian Engineer Association officials. The JEA will receive donations at its branches across the Kingdom, Saqqa said in a statement issued yesterday.

Interpol, PSD officer ‘to take part in Syria murder probe’

Officers from Interpol and the Public Security Department (PSD) are expected to arrive in Syria within 48 hours to help investigate the murder of a Jordanian citizen in

406 Damascus last Saturday. Brigadier General Mutaz Abu Jaber, the Interpol director in Amman, told The Jordan Times on Sunday that two Interpol officers and a PSD criminal investigation officer will take part in the investigation of the killing of Alaa Ziod. The Syrian interior ministry’s public relations director Brigadier General Talal Asad said that authorities are following up on the case closely with their Jordanian counterparts. Syrian police on Friday arrested a 26-year-old man suspected of murdering Ziod, a Jordanian translator and English teacher who was killed in a rented apartment in Damascus. The suspect, a Syrian national, was apprehended in the Maliha area in the Reef Damascus province, according to Asad. He was tracked by a phone call he made from one of the two mobile phones stolen from the 28-year-old victim.

Ministry to launch nationwide mental health strategy

Jordan will soon launch a national strategy for mental health to guarantee the inclusion of psychological illnesses in primary health services, Minister of Health Nayef Fayez said. Through the strategy, the ministry aims to address the lack of qualified human and financial resources and improve mental health services in the Kingdom, he noted. The national strategy, set to be launched soon, seeks to allocate adequate financial resources for mental health services, develop human resources and increase community involvement in treatment. It also aims to guarantee the availability and distribution of essential psychotropic drugs, according to the ministry. Currently there are no statistics on the prevalence of mental diseases in the Kingdom, according to health officials. A recent study conducted by the Higher Council for Science and Technology, however, revealed that Jordan suffers from a shortage in mental health services. Meanwhile, the ministry recently started training medical staff on providing mental healthcare in cooperation with WHO, and has already provided training for 15 nurses, 12 general practitioners and a number of social workers in Irbid Governorate. WHO will also soon train 32 general practitioners in Amman, according to Hashim Elmousaad, WHO representative for Jordan.

'Jordan’s national early childhood development strategy successful’

Jordan is the only country in the Middle East and North Africa region with a national Early Childhood Development (ECD) strategy, according to a report recently released by UNICEF. The “Jordan’s Early Childhood Development Initiative: Making Jordan Fit for Children” report, which was discussed in a regional workshop on Monday, stated that Jordan “stands proudly in the region for making a serious commitment not only to ensuring that it is a safe, welcoming homeland fit for all children, but also to making sure that it gives a head start to the underprivileged”. The national ECD strategy, which was developed in 2000, highlights the rights, needs and requirements of all Jordanian children in educational, social, psychological, physical and health-related fields, according to UNICEF. According to Anne Skatvedt, UNICEF representative in Jordan, the Kingdom achieved several ECD goals, such as providing better parenting training to some 130,000 families in urban and rural areas.

407 In addition, Jordan succeeded in increasing the rate of kindergarten enrolment to 51 per cent last year, compared to 28 per cent in 1990, she noted. Minister of Education Tayseer Nueimi said the Kingdom has focused on the ECD strategy to improve children’s services, such as setting licensing criteria for kindergartens and nurseries.

Unemployment fund included in proposed SSC law ‐ official

A new fund will be established this year by the government to financially support those who lose their jobs, a top official said. "The projected fund will support those who lose their jobs, but not those who are already unemployed," Minister of Labour Ghazi Shbeikat said on Monday. "The new plan to face unemployment will be part of the Social Security Corporation [SSC] draft law," which will be discussed by Parliament during its upcoming extraordinary session, expected to convene in May, he added. The minister said the plan is still under discussion to resolve issues such as whether or not the benefits will be available to foreign workers, but emphasised that the government is determined to carry it out. He also denied any differences between the ministry and the SSC over the fund. The unemployment fund will aid those who become unemployed for “unavoidable reasons”, a source from the SSC told The Jordan Times yesterday. As part of a government plan to lower the Kingdom's unemployment rate, the SSC will establish the fund to compensate subscribers who are laid off, but not those who deliberately resign, the source added. The official, who asked to remain unnamed, confirmed Shbeikat's statement that the government will establish the fund under the SSC draft law. Economists expect the unemployment rate to rise to 15 per cent in 2009, due to the consequences of the global economic slowdown. The country managed to reduce its unemployment rate from 13.7 per cent in 2007 to 13.1 per cent in 2008, according to official figures. The SSC seeks to expand its coverage by developing new compensation programmes such as the unemployment fund, according to SSC Director Omar Razzaz.

SYRIA

Political front

Geo strategic front

Syria's Assad praises Obama, wants meeting

408 Syrian President Bashar al‐Assad said he hoped to meet U.S. President Barack Obama and expressed his willingness to help mediate between the West and Iran. Assad, in an interview with Italian newspaper La Repubblica published on Wednesday, also confirmed he was ready to resume peace negotiations with Israel but expressed concern about the political climate there. "With the pullout in Iraq, the will for peace, the closing of Guantanamo, (Obama) has shown himself to be a man of his word," he said, referring to the U.S. naval base in Cuba where hundreds of suspected Islamist militants have been held, most for years without trial. But Assad said it was too soon to speak of a "historic shift" in U.S. foreign policy.Asked about meeting Obama, Assad said: "Yes, in principle. It would be a very positive sign. But I'm not looking for a photo opportunity. I want to see him, to talk." Obama has been reviewing U.S. policy toward Syria, including whether to return an ambassador to Damascus. Earlier this month he sent two envoys to Damascus earlier this month, where in a change of tone after years of animosity with Syria, one of the officials said they had found "a lot of common ground." Washington pulled its ambassador out of Syria after the 2005 assassination of former Lebanese Prime Minister Rafik al‐Hariri. Syria, which is on the U.S. list of state sponsors of terrorism, denies any involvement in Hariri's murder but the United States pointed fingers at Damascus. Assad said the United States under Obama could play an important role bringing peace to the region. Although he voiced confidence about the growing diplomatic roles of countries like Turkey and France in the area, he said "only Washington can press Israel."

European lawmakers meet Hamas leader in Syria

A European delegation met with Hamas leader Khaled Meshaal in Damascus in the first announced visit of a European delegation to meet with Hamas leaders, Democracy Now! reported Monday. Members of the delegation included British Parliamentarian Clare Short. “We’re very clear that to make progress we need to talk to Hamas, because they represent a big proportion of the Palestinian people," said Clare Short. "So we’re trying, by our visit, to bring more and more parliamentarians to open up discussion with Hamas in order to move things forward in the hope that we can, in the end, get a just peace,” she added. Israel's war on Gaza killed 1,330 Palestinians, mainly civilians, and wounded 5,450 others. The war also left tens of thousands of houses destroyed, while their residents remained homeless in the winter cold. Israel, which wants to crush any Palestinian liberation movement, responded to Hamas's win in the elections with sanctions, and almost completely blockaded the impoverished coastal strip after Hamas seized power in 2007, although a ‘lighter’ siege had already existed before. Human rights groups, both international and Israeli, slammed Israel’s siege of Gaza, branding it “collective punishment.” A group of international lawyers and human rights activists had also accused Israel of committing “genocide” through its crippling blockade of the Strip.

409 British politicians meet Hamas leader in Syria

Six‐member delegation meets Khaled Mashaal in effort to urge British government to talk to Hamas A delegation of British politicians pressing their government to hold direct talks with Hamas has met with the Palestinian group's exiled leader, Khaled Mashaal, in Syria. Britain, along with the United States and the European Union, considers Hamas a terrorist organization and refuses to have talks with the group, which has controlled the Gaza Strip since 2007. The six politicians include Labor Party member Clare Short and Jenny Tonge, a parliamentarian who was fired as her party's spokeswoman on children's issues after expressing understanding for Palestinian suicide bombers in 2004. Short told reporters in Syria that the aim of the visit was to urge the British government to talk to Hamas in the interest of peace. Recently, Britain softened its stance on dialogue with another Arab group. The British government announced that it is open to talks with the political wing of Lebanon's Iranian‐backed Hizbullah.

Lebanese PM Recognizes Syria's Key Role in the Region

Lebanese Prime Minister Fouad Seniora has stressed that "Syria's role in the region can not be ignored," local daily Al‐safier reported Monday. Syria plays a key role in the region and any "Lebanese‐Syrian reconciliation would benefit Lebanon," Seniora was quoted as saying in an interview with the Qatari TV al‐Jazeera on Sunday night. "Syria embraces Arab causes, and Lebanon in turn should embrace Syria," Seniora said, stressing however that Lebanon does not need "chaperone" regarding peace talks with Israel. He promised that Lebanon was committed to UN resolutions 425 and 1701, and the Arab peace initiative. Resolution 425 called for the withdrawal of all foreign forces form Lebanon, while resolution 1701, which ended the 34‐day war between Israel and Lebanese Hezbollah in 2006, called for the cease of aggression between Israel and Lebanon. Seniora, meanwhile, welcomed the recent Arab attempts towards rapprochement between Syria, Egypt and Saudi Arabia, stressing that such a step would benefit Lebanon as well. He ruled out any political influence over the Special Tribunal for Lebanon (STL) which was launched in the Hague on March 1 to try suspects in the assassination of former Prime Minister Rafik Hariri in 2005.

MIDEAST: Israel and Syria Step Closer

As reconciliation talks between the various Palestinian factions continue to falter, and peace between Israelis and Palestinians seems even more remote, the chance of Syria and Israel

410 reaching an agreement remains a real possibility. Several weeks ago Israel's chief patron, the U.S., sent two top envoys to Damascus to discuss strengthening ties, in a significant sign that relations between the two countries could be thawing. The U.S. withdrew its ambassador to Syria in 2005 following the assassination of former pro‐U.S. Lebanese president Rafiq Hariri. Syria was said to be behind the murder ‐ a charge it denies. Now indirect peace negotiations between Syria and Israel under the mediation of Turkey have been taking place on a regular basis following Israel's 2006 Lebanese war. Syria suspended talks several months ago in protest against Israel's bloody military offensive on Gaza. However, hitherto the U.S. actively discouraged Israel from negotiating with the Syrians. Former U.S. president George Bush said Syria was too close to what he described as the "Axis of Evil" which included Iran, Iraq and North Korea. There has long been a political divide between the two chief protagonists in the Middle East and their support of regional proxies as they sought to enforce a policy of divide and conquer in pursuit of their geopolitical interests. The U.S. and Iran have not only been involved in a war of words but have been fuelling tensions in the area by supplying their regional clients military and political aid.

Besides Syria wielding influence with Hamas and Hizbullah, any peace agreement between Israel and Syria would also put pressure on Lebanon to reach an agreement with Israel. This would free the Jewish state from being hemmed in by hostile neighbours.

The U.S. also needs Syria to prevent anti‐U.S. Islamic militants from crossing its border into Iraq ‐ something the U.S. has accused Syria of failing to do in the past.

Syria for its part wants U.S. sanctions against its Baathist regime removed. The sanctions have stifled bank transfers, technology imports and grounded some jets for lack of spare parts. But Syria's biggest priority is for Israel to return the Golan Heights, which were captured during the 1967 six‐Day Arab‐Israeli war, and it sees U.S. involvement as crucial for their return. Israel regards their possession as strategically important and will only consider returning them on condition that Syria first ceases support of Hamas and Hizbullah. There are also more than 15,000 Israeli settlers living and farming on the Golan and more than 70 percent of the Israeli public rejects a territorial compromise. Israel is also dependent on the Golan's water resources. However, the Israeli elite recognises the value of an accord with Syria which would not only weaken Iran's regional influence but also deprive local resistance groups of their military and economic support.

The fundamentals of the conflict between Israel and Syria have largely been resolved on paper during previous negotiations. But the finalisation and implementation of any deal, particularly Israel's withdrawal from Syrian territory, could take years, and would probably have to be done in several stages. This is where the new U.S. support for rapprochement would come into play.

Assad ready to mediate with Iran

411

Syrian President Bashar al‐Assad is ready to act as a mediator with Iran provided western countries come up with a clear plan to submit to Tehran, he said in an interview published Wednesday. And he praised US President Barack Obama as a man of his word for having honoured promises over a pull‐out from Iraq and shutting down the detention centre at Guantanamo Bay, in comments to the Italian daily La Repubblica. Tthe United States has clashed with Iran over a number of issues including its role in neighbouring Iraq and its nuclear programme. Assad insisted that dialogue was essential to clear up these disputes. He described the early moves by US President Barack Obama as encouraging. Obama would have to restore the credibility of the United States, he added. Iran insists it has the right to develop nuclear technology, which it says is aimed at generating energy for its growing population. Israel is the only country in the Middle Ease that actually has nuclear weapons. Observers say due the strong Jewish and pro‐Israel lobbies in the US and some European countries, these countries have taken a hypocritical stance in relation to nuclear issues in the region.

Assad: US could mediate Syria‐Israel talks

Syrian President Bashar al‐Assad said his country could hold direct peace talks with Israel if the United States acted as an arbitrator, according to an interview published on Wednesday. Assad also told Japan's Asahi Shimbun that he welcomed US President Barack Obama's new administration and wants to engage in dialogue for regional peace, but he also insisted on the return of the Israeli‐occupied Golan Heights. "We need the United States to act as an arbitrator when we move from the current indirect negotiations to direct negotiations (with Israel)," he was quoted as saying in an interview with the Japanese‐language newspaper. Syria held exploratory contacts with Israel through Turkish mediators last year about resuming peace negotiations that broke off in 2000 over the fate of the strategic Golan plateau. Assad cautioned that possible progress of such talks would "depend on the next Israeli administration," the Asahi said.

US‐Syrian ties were especially tense under former president George W. Bush, who accused Damascus of supporting terrorism, helping Iran and of turning a blind eye to the flow of arms and supplies to insurgents in Iraq. Washington has not yet taken a decision about returning its ambassador to Syria, a senior US envoy said this month after visiting Damascus to mend ties. Assad harshly criticised the US‐led wars in Iraq and Afghanistan, and hit out at Bush for putting pressure on Syria, the Asahi said. But he also stressed his willingness to help work toward regional peace. Assad welcomed the Obama administration's active engagement with Syria through sending envoys and US senators for meetings, the Asahi said.

412 To achieve regional peace, the Syrian president emphasised the importance of including major parties in the peace process, adding that he would work to bring Hamas and Hezbollah to the table.

Saudi king breaks ice with Assad

Syrian President Bashar al‐Assad and his Egyptian counterpart Hosni Mubarak are to meet with Saudi Arabia's King Abdullah in Riyadh on Wednesday, the government announced, as efforts to smooth over Arab differences intensified. The three would be discussing mutual issues and preparing the ground for the Arab League summit in Doha expected to take place on March 30, according to Riyadh diplomatic sources. "Bilateral relations... and ways of strengthening them in various fields in addition to regional and international issues of common concern" will be on the agenda, according to the Saudi state news agency SPA. Assad's visit to Saudi Arabia would also mark a tentative rapprochement between Riyadh and Damascus. Saudis were angered by Syria's alleged complicity in the 2005 bombing assassination of former Lebanese premier Rafiq Hariri, a Saudi citizen and protege. Syria has steadfastly denied it was involved in the murder. But with the Hariri case in the hands of a special tribunal in The Hague since March 1, Saudi Arabia now hopes to forge a united front at the Doha summit after Arab nations split over Israel's Gaza assault at a gathering in Kuwait in January. The 22‐day war that ended January 18 killed more than 1,300 mainly civilian Palestinians and wreaked damage totalling billions of dollars on the territory's infrastructure. The initiative, closely tied to the Saudi king himself but mostly ignored by Israel, offers Israel blanket recognition from all the Arab states in return for establishing a Palestinian state based on pre‐1967 borders and the principle of right of return for Palestinian refugees. In repeated statements this year, the Saudis have called on Washington and Israel to buy into the initiative, toughly warning that its offer of Arab recognition of Israel has a looming expiration date. The visits to Riyadh also come as Egypt, with Saudi backing, brokers talks in Cairo between rival Palestinian factions, including Hamas and Mahmud Abbas's Fatah. The talks, which aim at forming a national unity government that can eventually engage in peace negotiations, opened in Cairo on Tuesday. Egypt's intelligence chief Omar Suleiman, acting as a mediator, called on the various sides to work hard toward a reconciliation, the Egyptian state‐ news agency MENA reported. Those negotiations could also be high on the list of issues for Abdullah, Mubarak and Assad, given Syria's close relations with Hamas.

First Lebanese Embassy Opens In Syria

413 A Lebanese flag flew over Beirut Monday, hoisted atop the first‐ever Lebanese Embassy in Damascus. There were no festivities to accompany the final, long‐awaited step in the establishment of full diplomatic relations between the two countries for the first time in their 60 year history. Charge d'affaires Rami Mourtadaha drew back a curtain to reveal the plaque: "The Embassy of the Lebanese Republic." The building sits near the U.S. Embassy on the Syrian capital's upscale Abu Rummaneh street. Michel el‐Khoury, currently Lebanon's Ambassador to Cyprus, was expected to start his new mission in Damascus in the middle of April. No Syrian officials attended the opening ceremony and no speeches were made. Syrian media took very little notice of the opening. State‐run news agency SANA — which generally reflects the thinking of the government — mentioned the inauguration, but in few words. Syrian Foreign Minister Walid al‐Muallem blamed the notable official absence on a scheduling conflict. Later Monday night, Syrian Vice‐Foreign Minister Faisal Miqdad paid a courtesy visit to the embassy. Syria, which withdrew its forces from Lebanon in 2005, after a 29‐year presence, opened an embassy of its own in West Beirut last December, as ties between the two long‐feuding neighbors slowly improved. Damascus has not yet named an envoy. Politicians in Beirut, along with the U.S. and other Western nations, have been pressing Lebanon hard to establish diplomatic ties with Syria. The two countries have not had diplomatic relations since Britain and France carved them out of the remnants of the old Ottoman Empire in the 1940s. Lebanese Foreign Minister Fawzi Salloukh told the Assafir newspaper the opening of the embassies would help, "organize and legalize bilateral relations, and become a guarantee for Lebanese citizens in Syria and Syrian citizens in Lebanon." Syria dominated Lebanese politics for 30 years, until the assassination of former Lebanese Prime Minister Rafik al‐Hariri in 2005. His murder sparked days of massive protests in Lebanon and led to the eventual withdrawal of Syrian forces. Some countries suspect that elements in Damascus were behind the killing. Syria has consistently denied any involvement.

Economic front

Syria opens Damascus Securities Exchange

Syria launched its first stock exchange in decades last week in a bid to upgrade its financial system and attract much‐needed foreign investments to its growing economy. The country, which is seeking to privatize its once‐heavily state‐owned economy is shifting from decades of socialist policies toward a more market‐oriented system. The Damascus Securities Exchange, which will be indirectly supervised by the government, began with six listed companies, including banking, publishing and transport firms, and will be open two days a week. "The bourse will constitute an important turning point in the Syrian economy," Finance Minister Mohammed Husayn said after the opening, according to the official Syrian news agency. About 20 companies are expected to be listed by the end of the year, officials said. Four brokerage companies have been licensed to operate. Daily fluctuations in

414 share prices will be limited to 2 percent. Investors won't be allowed to buy and resell on the same day, according to the bylaws regulating the market. "We want the [exchange] to function as an investment market rather than a speculation market, as we aim to attract long‐term investment that will contribute to the growth of the economy," the executive director of the exchange, Mohammed Jlelati, told the Syria Report, a business publication. Earlier this year, an official said the country was considering giving foreign investors a chance to buy controlling stakes in companies in the financial sector.

Social front

Corruption remains sky‐high in Syria

The recent dismissal of a high‐ranking official accused of embezzlement is seen by many as a token move by authorities reluctant to seriously address corruption. Last month, Prime Minister Naji al‐Otari sacked the head of customs Brigadier General Hafez Makhlouf after it emerged that he had been the subject of a graft probe. But some analysts argue that in removing the official, the authorities have merely scratched the surface of the much wider problem of corruption at the highest levels of government. After Makhlouf was dismissed, the official newspaper al‐ Thawra reported that the authorities had seized all his financial assets and those of his family, including 137 properties all over Syria. The possessions of ten other customs employees were also expropriated, according to the daily. There has been little official comment on the case.

In recent weeks, the government had indicated its desire to stamp out crooked practices. During a conference in Damascus in February, Haytham Satayhi, an official from the ruling Ba’ath party, said the country’s leaders were serious about fighting corruption.

But a Damascus‐based economist, who preferred not to be named, argued that Makhlouf had been made a scapegoat, like other officials before him. According to the economist, the likes of Maklouf work as “agents” for powerful government officials who ultimately reap most of the benefits from the misuse of public funds. Damascus‐based lawyer Michel Shammas said the authorities had been monitoring Makhlouf for more than a year before deciding to expose his alleged involvement in corruption. About a year and a half ago, an official investigator assigned to look into customs records uncovered evidence that officers there were implicated in bribery and embezzlement of public funds, he explained. The investigator was attacked in the state‐run media and soon taken off the case, said Shammas. A finance ministry committee was then put in charge of scrutinising the inspector’s allegations, he added. By sacrificing Makhlouf, he said, the government was looking to gain public confidence by trying show that it was serious about

415 rooting out corruption. Some have suggested that the authorities’ latest pronouncements and actions on graft might be linked to efforts to woo the European Union. Syria is pursuing a raft of reforms in several areas because it is eager to sign an association agreement with the EU, pointed out a political analyst, who also asked to remain anonymous. Technical negotiations on the accord between the EU and Syria were carried out in October 2004.

Under the deal, Damascus will benefit from trade and investment, if it pushes forward on economic, social and democratic reforms. However, the EU appears to have concluded that there’s not been sufficient progress. While the government promised to carry out public sector reforms at a national Ba’ath party conference in June 2005, little has been done since then. Many ordinary Syrians agree. “It’s all about replacing one thief with another thief,” said a Damascus trader, expressing a widely‐held view. “It is impossible to get any document processed at customs without paying a bribe.”

BUSINESS AND POLITICS IN THE MUSLIM WORLD

Gulf Cooperation Council (GCC)

Madiha Kaukab

Weekly Report: from 14th March 2009 to 20th March 2009

Presentation Date: 25th March 2009

416 Following news monitoring report is based on the important political, social, economic and International events occurred in Gulf Cooperation Council States.

OUT LINE

GCC

The trade within the GCC has been increasing

Qatar, Arab League reject ICC cooperation request on Bashir arrest: report

Arab League says it won't arrest Bashir

SAUDI ARABIA

Social Desk

Saudi denies Shiites targeted in Sunni kingdom

Royal Saudi family attends pilot training graduation

Human Rights/ Trafficking Desk

Saudi man complains of religious police abuse

IR Desk

Obama talks to Indonesia, Saudi leaders on economy

King, Mottaki discuss bilateral ties

Pro-Saudi militia being recruited in Gaza

Freeman imbroglio splits liberal US Jewish NGOs Certain Israel advocacy groups, such as the Zionist Organization of America,

U.S. and Saudi Forces Extend Hands in Friendship One 2009

Nigeria: NAHCON Doesn't Owe Saudi - Chairman

Economic Desk

Saudi economy is robust, says King Abdullah

417 Oil & Gas

Saudi’s Naimi Says OPEC Cut Compliance Can Be Better

Fossil fuel vital for decades: Saudi oil minister

OPEC wants higher oil prices: Saudi oil minister

Saudi Arabia Urges Caution On Climate Change Goals-Saudi Aide

Special Reports

The Saudi Arabian Government Has All But Admitted It Cannot Finance A Sustainable Healthcare Sector

Study cautions against relying on Arab kingdom

UAE

Social Desk

Foreign Governments Paid for Fenty's Trips

Human Rights/ Trafficking Desk

YouTube ban in UAE

IR Desk

France to open first Persian Gulf base in May

CA delays signing MoU for PCB series in UAE

418 Kazakh President arrives UAE

UAE keen to double Kazakhstan investments

UAE is important strategic partner of Kazakhstan: President Nazarbayev

UAE FM meets his Iranian counterpart

EDC partners with MATRADE to bolster trade between the UAE and Malaysia

UAE, Malaysian Businesses Urged To Boost Strategic Links

UAE Red Crescent to help build shelters for refugees

Economic Desk

UAE capable of counterng impacts of global economic crisis

UAE Travel '&' Tourism Sector Ranks "1st" in the Middle East '&' Africa Region 35 big hotels to open in UAE by 2010

UAE has a date with new Guinness world record

Sheikh Khalifa defends UAE response to economic crisis

Malaysian Companies Show Competitiveness In UAE, Says Minister

Canada, UAE sign trade pact

UAE is biggest market in Mena for US exports

Oil & Gas

Libya, UAE group to upgrade Ras Lanuf refinery

UAE, Korea to set up 1,000MW power plant

UAE oil earns $6bn in 2009

UAE output falls to 2.25m bpd in February

BAHRAIN

Social Desk

Bahraini Scholar Slams Violence Against ExpatsSuad Hamada

A police patrol was also set on fire.

419 Recession Forces Dowry to Go Up in BahrainSuad Hamada

Bahraini set for Belfast conference

IR Desk

Bahrain to set up $500m Manila agri JV

Iran to blame for Morocco's severing of ties: minister

Tehran-Manama friendly relations guarantee regional tranquility

Nothing can damage Iran-Bahrain ties: PM

Economic Desk

The impact of global crisis in Bahrain has been minimal

Bahrain 'poised for quick economic recovery'

Oil & Gas

Bahrain Oil and Gas Report Q1 2009

KUWAIT

Political Desk

Political, moral, leadership crises enveloping Kuwait’

KUWAIT: Emir dissolves parliament amid bickering

Kuwait dissolves parliament, set for $5 billion plan

Moody's: Kuwait on review after assembly dismissed

Human Rights/ Trafficking Desk

Kuwait committed to all human rights: diplomat

Nuclear Energy Desk

Kuwait says eyes nuclear cooperation with France

Oil & Gas

420 Kuwait says all options open ahead of OPEC meet

India ONGC JV to bid for Kuwait oil spill contract

OMAN

IR Desk

Singaporeans in Oman urged to uphold country's brand name

IRAN AND UZBEKISTAN TO LINK CHINA WITH GULF OF OMAN

Tunisia , Oman ink MoU on digital certification

Economic Desk

Oman inflation doubled to 12.4% in 2008

Oman Set to Introduce MVNOs by April

QATAR

IR Desk

Iran Calls for Multilateral Cooperation to Resolve Regional Problems

ICC urges Qatar to cooperate with Beshir arrest warrant

UN chief to visit Moscow, Qatar and Europe

Economic Desk

Qatar fund to target food and energy

Vodafone Qatar to launch IPO

16 firms head to Qatar

Oil & Gas

OPEC must meet previous cuts before acting again: Qatar

421 DETAILED REPORT

GCC

The trade within the GCC has been increasing

Kuwait may join Oman to opt out of the GCC monetary union next year and both the countries could join the union later, a senior economist close to the matter said.

Jarmo T Kotilaine, Chief Economist of Bahrain‐based NCB Capital Fund (a subsidiary of National of Saudi Arabia), said the decision to form a monetary union and introducing a common currency is now hinged on two questions. First being the name of the common currency. And second, where will the central bank be located? "For all that we know, discussions are currently being carried out on these issues. All the GCC countries are lobbying to have the central bank located on their soil," Kotilaine said.

Oman and Kuwait have had divergent views with regards to the GCC union. While Oman has been reluctant to accept a common currency, Kuwait has de‐pegged its currency to the dollar (to which all the GCC currencies are pegged) and has pegged it to a basket of currencies. "Other GCC countries may therefore go ahead and form a union. These two countries may join later," said Kotilaine, who has been researching on the monetary union and had also published a report on it.

The GCC monetary union once formed will be second largest (in terms of combined GDP) in the world. A recent study by the Middle East Economic Survey (MEES), a Cyprus‐based economic publication, said while Saudi Arabia accounts for 52 per cent of the GDP of the GCC, UAE accounts for 22 per cent. Kuwait and Oman, which are expected to initially opt out of the monetary union, account for 12 per cent and 6 per cent, respectively, of the total GDP of the region. "That the economies of GCC countries are increasingly divergent in nature will be a challenge for the union."

Qatar, Arab League reject ICC cooperation request on Bashir arrest: report

The Arab League and Qatar have both rejected a request from the International Criminal Court (ICC) to execute an arrest warrant against Sudanese president Omer Hassan Al‐Bashir, Sudan official news agency (SUNA) reported.

422

SUNA quoted the Arab League Secretary General Amr Moussa from the Syrian capital as saying that his organization as well as Qatar received the cooperation request but turned it down.

Arab League says it won't arrest Bashir

Iran's President Mahmoud Ahmadinejad (R) and Sudanese President Omar al‐Bashir are seen in an April 26, 2006 file photo in Tehran, Iran. The International Criminal Court issued an arrest warrant March 4, 2009 for Sudanese President Omar al‐Bashir on charges of war crimes and crimes against humanity in Darfur. (UPI Photo/Mohammad Kheirkhah)

SAUDI ARABIA

Social Desk

Saudi denies Shiites targeted in Sunni kingdom

Saudi Interior Minister Prince Nayef bin Abdul Aziz denied on Saturday that Shiite pilgrims were specially targeted by security forces in the ultra-conservative Sunni kingdom last month.

"It is not a matter of targeting Shiites or others as much as it is a matter (of dealing with) anyone who goes against the law or tries to offend anything in the nation," Prince Nayef said in remarks published by the Okaz newspaper.

According to accounts from Shiite Muslims, the pilgrims were angered when Sunni religious police made videos of Shiite women in their group and the dispute later boiled over into violence. Prince Nayef said the incident involved people gathering sand from tombs of companions of Prophet Mohammed, in defiance of the doctrine of Sunni Islam known as Wahhabism which is practised in Saudi Arabia. "We completely reject the clash of sects in our country," he said, adding that Saudi Arabia's Sunni doctrines "should not be tampered with."

Royal Saudi family attends pilot training graduation Members of the royal family of Saudi Arabia visited Columbus Air Force Base March 13 to participate in the graduation ceremony of Specialized Undergraduate Pilot Training Class 09‐06.

423

Human Rights/ Trafficking Desk

Saudi man complains of religious police abuse

A Saudi man has filed a formal complaint against the kingdom's ultraconservative religious police in another sign of mounting frustration directed at Saudi Arabia's powerful religious authorities.

Mohammed al‐Kahtani said Thursday he was dropping his wife off at a shopping mall Tuesday in the Saudi capital of Riyadh when members of the religious police accosted him. They accused him of being with a woman who was not his wife _ prohibited in the kingdom _ and dragged him into the street, beating him around the face and back, he said. They also forced his wife to leave the mall, showering her with insults, al‐Kahtani said. "My wife cried, screamed and fainted," al‐ Kahtani, 27, told The Associated Press by phone. "I saw the worst day of my whole life. That day I felt I am not a human being but a sheep." The incident was widely reported in Saudi newspapers.

Al‐Kahtani said he showed the religious police his marriage certificate, but they weren't convinced and took him in the trunk of their car to the religious police office. There he was eventually given an apology and let go. But al‐Kahtani said that wasn't enough so he decided to file a complaint, accusing the religious police of abuse and humiliation. "I don't believe what they do to people. I am not the only one. There are so many stories," al‐Kahtani said.

IR Desk

Obama talks to Indonesia, Saudi leaders on economy

The U.S. president discussed the economic crisis and the upcoming Group of 20 summit of developed and developing nations in phone calls with King Abdullah of Saudi Arabia and President Gloria Arroyo of the Philippines, the White House said in a statement.

The U.S. leader has stressed his wish to improve ties with the Islamic world and has promised to give a major speech from the capital of a Muslim country during his first year in office. His first interview after becoming president was with al-Arabiya, the Dubai-based Arabic television station, and he will travel to Turkey after the G20 summit

424 in early April. Obama spoke with King Abdullah about the need to coordinate international efforts to restore economic growth, the White House said. "The president and King Abdullah also reaffirmed the importance of a strong U.S.-Saudi relationship in promoting peace and security in the region," it said.

King, Mottaki discuss bilateral ties

Custodian of the Two Holy Mosques King Abdullah held wide-ranging talks with Iranian Foreign Minister Manouchehr Mottaki, who made an unannounced visit to Riyadh yesterday.

“The consultations covered a range of topics, especially focusing on the need to boost Saudi-Iran relations,” said a diplomatic source. “The visit of the Iranian foreign minister is extremely important keeping in view the current regional situation and the forthcoming Doha summit.” The talks also dealt with the recent Israeli war on Gaza and the obstacles that hamper plans to create a sovereign Palestinian state.

Pro-Saudi militia being recruited in Gaza A new pro-Saudi militia is being recruited in three Palestinian towns in the southern Gaza Strip with Egypt's blessing, say military sources.

More than 1,000 Palestinians have joined the group in the past two weeks in the towns of Deir al Balakh, Khan Yunis and Rafah, Debkafile reported Wednesday.

The military intelligence Web site said it has learned from sources that the new Gaza group is promising greater militancy against Israel than Hamas and Islamic Jihad combined. Debkafile said the Saudis have been pumping weapons, cash and dozens of military instructors into the area through Egyptian territory, a move that couldn't take place without Cairo's knowledge.

The new Gaza organization is reportedly intended to complement a pro‐Saudi group established in southern Lebanon in January. Dubbed the Arab Islamic Resistance Organization, that group has staged war games near the Israeli border, Debkafile said.

Freeman imbroglio splits liberal US Jewish NGOs As the controversy over Charles Freeman's withdrawal from the chairmanship of the US National Intelligence Council continues to roil, with Freeman's supporters and members of the

425 Arab media pointing to his exit as proof of the power of the "Israel Lobby," it has also provoked debate in the progressive Jewish community about their own role and response.

Freeman, a former ambassador to Saudi Arabia appointed NIC chair by Director of National Intelligence Dennis Blair, stepped aside last Tuesday amid outcry from several members of Congress, media figures and pro‐Israel activists about statements he made criticizing Israel, praising Saudi Arabia after 9/11 and seeming to favor China over democracy advocates, as well as questions over his business ties to China and Saudi Arabia.

Certain Israel advocacy groups, such as the Zionist Organization of America, welcomed his withdrawal and highlighted their role in the decision. Freeman himself made a lengthy statement blasting the "Israel Lobby" for costing him the job. In response, liberal Jewish blogger Richard Silverstein took left‐wing Israel groups to task for "turning tail and running from this fight as fast as their little feet would carry them," rather than speaking out for Freeman, enabling a precedent that he painted as dangerous for other administration appointees who question Israeli policies.

U.S. and Saudi Forces Extend Hands in Friendship One 2009 Over the next few weeks, National Guard Soldiers from the U.S., along with U.S. Army Central service members, will work side by side with Royal Saudi Land Forces to strengthen military interoperability and relations between the two nations through a field training exercise called Friendship One 2009.

“[Friendship One] has multiple facets to it. But most important, it’s a great opportunity to help with interaction with a foreign army to be able to build a friendship with them and a relationship that will be long lasting,” said Lt. Col. Anthony Mohatt, battalion commander, 2nd Battalion 137th Combined Arms Battalion, Kansas National Guard.

Nigeria: NAHCON Doesn't Owe Saudi - Chairman Following recent publications in national dailies that the National Hajj Commission of Nigeria (NAHCON) owes Saudi Arabian authorities $13.9m which may affect this years' hajj operation, the Commission says it does not owe the Saudi Arabians any debt.

426 Economic Desk

Saudi economy is robust, says King Abdullah

Custodian of the Two Holy Mosques King Abdullah yesterday emphasized the strength of the Saudi economy and its ability to face the current global financial crisis.

He hoped that next month’s G‐20 meeting would contribute to achieving global economic recovery and solving international economic problems.

The Cabinet endorsed the revised Arab Anti-Terror Accord that considers encouraging people to commit terrorism as well as financing and collecting funds to commit such crimes as terrorist acts. “Terrorism is any crime that is committed with the intent of creating terror in any allied country or against its properties or interests and its citizens and their properties,” Article 1 of the accord said. The article warned against praising terrorist acts or printing publications or writing articles or producing audio and videocassettes in favor of terrorism, saying such acts would be considered acts of terrorism. During the Cabinet meeting, King Abdullah briefed the ministers on the outcome of his talks with Egyptian President Hosni Mubarak, Syrian President Bashar Assad, and Kuwaiti Emir Sheikh Sabah Al‐Ahmad Al‐Jaber Al‐Sabah in Riyadh. “We discussed all outstanding issues frankly and transparently in a positive way. The leaders were convinced of the importance of achieving unity in joint Arab action and solving problems through dialogue,” the king said. King Abdullah said the four‐way summit talks had discussed the need to expand the area of Arab interests and prevent regional and international interference in Arab problems. “There was unanimity on putting higher Arab interests at the top of all considerations and protecting the interests of Arab nations and peoples.”

Oil & Gas

Saudi’s Naimi Says OPEC Cut Compliance Can Be Better

Saudi Oil Minister Ali al‐Naimi said the oil market is not yet balanced and compliance with OPEC production cuts could be better.

427 The 12 members the Organization of Petroleum Exporting Countries, supplying about 40 percent of the world’s oil, meets tomorrow in Vienna to review compliance with production cutbacks set last year and to decide whether more reductions are needed.

Fossil fuel vital for decades: Saudi oil minister Fossil fuels will be vital for the world's energy for decades to come and must be made cleaner and more efficient, Saudi Arabian Oil Minister Ali al‐Naimi said on Monday.

"Given their massive scale, non‐renewables will remain the world's energy workhorse for many decades to come," he told an energy and environment conference. The minister had attended OPEC's Sunday meeting in Vienna which had agreed to hold oil output steady. Naimi reiterated the group's view that investment in future energy projects was under threat due to the world economic downturn and low oil prices.

OPEC wants higher oil prices: Saudi oil minister

OPEC has made enough cuts to balance the market and has succeeded in "putting a floor" to oil price falls but would like to see higher prices to sustain investment, Saudi Oil Minister Ali al‐ Naimi told CNN.

Naimi, whose country is the world's top oil exporter, said that oil prices of $40‐45 a barrel may eliminate some investment by marginal producers and tighten long‐term supply. "I think the purpose of our meeting on May 28th is to really look at what we have done and look at what's projected in the future," he said, according to a transcript of the interview on CNN's Quest Means Business.

Saudi Arabia Urges Caution On Climate Change Goals- Saudi Aide

Saudi Arabia, which has many decades worth of oil to pump out of the ground, on Thursday urged developed nations like the United States not to pursue overly aggressive measures to cut carbon emissions because of the potential financial impact on oil states. Oil producers like Saudi Arabia stand to suffer the most from climate change mitigation policies.

428 Special Reports

Social Desk The Saudi Arabian Government Has All But Admitted It Cannot Finance A Sustainable Healthcare Sector The Saudi Arabia Pharmaceuticals and Healthcare Report provides independent forecasts and competitive intelligence on Saudi Arabia's pharmaceuticals and healthcare industry.

In a clear sign that Saudi Arabia's government is looking to offload some of its financial burden from health expenditure, Manar Al‐Moneef of the Saudi Arabian General Investment Authority (SAGIA) described the current funding model as 'unsustainable' in an interview with the in October 2008. Al‐Moneef pointed to population growth and the growing disease burden as key reasons for the strain on funding.

The Saudi Arabian government has recognized that as the population is projected to increase to 27.6mn people by 2013, and has all but admitted it cannot finance a sustainable healthcare sector. It has proposed to restructure the management of the existing 218 government hospitals into private enterprises.

Furthermore, any additional hospitals or clinics built will be private. The Saudi Ministry of Health authorities are progressing toward regulating medical services instead of financing the provision of healthcare. It is believed that eventually, this will reverse the trend for patients to travel abroad for treatment as privatization will raise the quality of medical care offered.

In October 2008, the Dr. Soliman Fakeeh Hospital (DSFH) was officially accredited with the Australian Council of Healthcare Standards International (ACHSI). This represents a significant achievement for the first private hospital in the western region and marks the development of Saudi Arabia's commitment to raising the quality of healthcare. The ACHSI criteria is not restricted to specific countries and therefore is used a means of objective comparison. It is hoped that an increase in the number of Saudi hospitals that attain approval from the body will increase the confidence of patients who choose to be treated there. Health insurance companies are more likely to extend their cover if the hospital in question has gained ACHSI accreditation. This development may lead to improved quality of care delivered at other hospitals, in order to mirror the achievement of DSFH. Overall, it points to a trend of increasing

429 awareness of the importance of quality of care and the commitment to maintaining international alliances to continue improve standards.

A shortage of nurses in the country has initiated an international recruitment drive to make up the deficit. Over 2,000 specialist nurses are to be recruited from the Philippines in cooperation with the Saudi Ministry of Health. However, long term ambitions to decrease dependence on foreign staff will still be the main focus, with places on specialist nursing courses reserved for Saudi women.

In an encouraging development for Saudi Arabia's R&D sector, researchers have successfully mapped the Arab genome. It is believed that understanding the genetics of certain populations will support further investigations into predisposed illnesses. The development will provide strong indicators for predicting the spread of certain diseases, as well as creating opportunities for more specific research into preventive measures.

IR Desk

Study cautions against relying on Arab kingdom By BARRY SCHWEID WASHINGTON (AP)

U.S. policymakers should not assume Saudi Arabia will "act in lockstep" with the United States in countering Iran's influence in the Arab world, a Rand Corp. report said Tuesday.

While the Saudis often are viewed as a "confrontational proxy" against Iran, the Saudi government in Riyadh has demonstrated a tendency to hedge its bets, the research organization said. Instead of lining up against Iran, the Saudi kingdom is pursuing a nuanced approach that incorporates elements of accommodation and engagement, the report said. There is a rivalry between Saudi Arabia and Iran but they also work together on various issues, including economic issues and regional security, Alireza Nader, one of the authors, said in an interview."It is not a black and white relationship," Nader said.

While Iranian President Mahmoud Ahmadinejad has vowed to erase Israel from the map, the Saudis have won widespread Arab support for a peace plan offering Israel recognition in exchange for all Arab land lost in the 1967 Mideast war. Iran is challenging the Saudis' claim to leadership on Arab issues, particularly Palestine, the report said, while Saudi King Abdullah is

430 trying to isolate Iranian rejection of Israel. Overall, the report said, the United States should encourage Saudi outreach to Iran while working to resolve the two countries' differences, particularly on the Arab‐Israeli front. Tensions between Iran and Saudi Arabia are long‐standing. Iran continues to regard Riyadh as America's principal local proxy while Saudi Arabia harbors a deep distrust of Iran, the report said. But when necessary, the two countries have cooperated when their interests intersect.

"Both sides are careful not to create too much instability in the Persian Gulf," Nader said. And, he added, as Iran's nuclear program continues to generate U.S. opposition, while they are opposed to the program "the Saudis are concerned about a military conflict that could further destabilize the region.

" Research for the study was conducted between 2006 and 2009 by the Rand Corp., an independent institute that does much of its work for the Defense Department. In this case, it was produced with financing by the Smith Richardson Foundation.

UAE

Social Desk

SPORTS

Foreign Governments Paid for Fenty's Trips Mayor Adrian M. Fenty traveled to China for the Summer Olympics and to Dubai last month.

D.C. Mayor Adrian M. Fenty accepted a total of $36,300 from foreign governments to pay for his trips to China and the United Arab Emirates, the city's attorney general said last night. In a memo released to reporters, Peter J. Nickles said Chinese officials paid $11,300 for hotels, food, travel and incidentals for the mayor's week in Beijing and Shanghai for the Summer Olympics in August. The UAE government spent $25,000 for Fenty's one‐week trip to Dubai last month, during which the mayor attended a professional women's tennis tournament.

Human Rights/ Trafficking Desk

YouTube ban in UAE We heard these rumors in the past, but more and more people seem to be confirming that these aren’t just false alarms anymore and that YouTube will actually be banned officially in the UAE. We can’t be totally sure yet until the site is totally inaccessible for our friends and members there, and according to them no action has been taken yet (despite thousands of other sites being blocked) however many are expecting it.

431

IR Desk

France to open first Persian Gulf base in May UAE President Sheikh Khalifa bin Zayed al Nahyan (right) and his French counterpart Nicolas Sarkozy signed the pact for a French military base in Abu Dhabi in 2008.

French President Nicolas Sarkozy is set to formally open his country's first permanent military base in the Persian Gulf, reports say. French diplomatic sources on Saturday revealed the scheduled date for the opening of the base, adding that Sarkozy would attend the inauguration ceremony, AFP reported. Under a pact penned in 2008, United Arab Emirates agreed to host the French military base in Abu Dhabi, the wealthiest and largest of the seven emirates that form the Sheikhdom.

"It will be the first such French base in the gulf and it will face the Strait of Hormuz," a French presidential source said at the time. The strategic Strait of Hormuz, an important channel dividing Iran and Oman, serves as a vital artery for the oil industry. An estimated 40 percent of the world's sea‐transited oil supplies pass through its waters. French officials said last year that the base will eventually host 400‐500 security personnel from all three elements of the French military: army, navy and air force. Abu Dhabi and Paris are linked by a 1995 defense pact and carry out regular joint maneuvers in the UAE.

CA delays signing MoU for PCB series in UAE

Cricket Australia has delayed signing the Memorandum of Understanding for the one‐day series in UAE with Pakistan until it is satisfied with the security plan of the Emirates Board.

Sources in the Pakistan Cricket Board have confirmed that the reason for the Australians not signing the MOU as yet for the series of five one‐day internationals and a Twenty20 match is the security arrangements in host cities Abu Dhabi and Dubai. "Since the matches are being hosted in the UAE, we are coordinating with the Emirates Cricket Board, which is meeting local authorities to secure a proper security plan for the two teams," one source told PTI.

Kazakh President arrives UAE President of Kazakhstan Nursultan Nazarbayev arrived here today on a private visit to the UAE.

432 Staring a state visit on Monday, President Nazarbayev will hold talks with President H.H. Sheikh Khalifa bin Zayed Al Nahyan over ways of boosting bilateral relations of cooperation and friendship and a host of issues of mutual concern.

UAE keen to double Kazakhstan investments The UAE has Dh15 billion capital investments in Kazakhstan and is keen to double these this year, said a top official from Abu Dhabi Chamber of Commerce and Industry (ADCCI).

Salah Salem bin Omeir Al Shamsi, Chairman of ADCCI, said economic ties between the UAE and Kazakhstan are set for further growth as they have opened their doors for two‐way investments.

UAE is important strategic partner of Kazakhstan: President Nazarbayev President of Kazakhstan, Nursultan Nazarbayev, has praised President H.H. Sheikh Khalifa bin Zayed al Nahyan for his wise leadership. He said Sheikh Khalifa is a leader who commands great wisdom and vision.

In an exclusive interview to the Emirates News Agency (WAM), The Kazakh President praised the UAE for achieving comprehensive development and attributed those achievements to the wise leadership of Sheikh Khalifa. He said with these great achievements and development, the UAE had become the attraction of major international companies looking for the right investment opportunities. He noted that his country was trying to emulate the UAE's experience in economic diversification and diversification of its sources of revenue, adding that the incentives and facilities being offered by the UAE were unmatched by those on offer in other countries in the region.

UAE FM meets his Iranian counterpart Foreign Minister H.H. Sheikh Abdullah bin Zayed Al Nahyan received today at the Emirates Palace his Iranian counterpart Manouchehr Mottaki.

433 The two top diplomats reviewed relations between the two countries. Foreign Minister Manouchehr Mottaki said in the UAE on Tuesday that Iran and the UAE should hold more consultations for stronger economic cooperation regarding the high volume of their trade. Mottaki further told UAE President Sheikh Khalifa bin‐Zayed an‐Nahyan that all countries should take new strategies to offlay negative effectives of the ongoing financial crisis. Commenting on present oil prices, Mottaki said the prices are "unreal and unjust" and the oil producing countries should take initiatives beyond traditional norms of OPEC.

The UAE President said, for his part, that all regional states should try to serve the interests of their nations and ensure fair pricee for oil.

EDC partners with MATRADE to bolster trade between the UAE and Malaysia In the presence of Her Excellency Sheikha Lubna Bint Khalid Al Qasimi, UAE Minister of Foreign Trade and The Honourable Tan Sri Dato’ Haji Mhiydin Haji Mohd Yassin, Minister of International Trade and Industry of Malaysia; Dubai Export Development Corporation (EDC) and the Malaysia External Trade Development Corporation (MATRADE) have signed a three‐year Memorandum of Understanding to strengthen the trade between Malaysia and the UAE.

UAE, Malaysian Businesses Urged To Boost Strategic Links The United Arab Emirates' (UAE) Foreign Trade Minister Sheikha Lubna Al Qasimi has urged Malaysian and local businesses to look beyond the threats of the global economic slowdown and identify the opportunities for growth and innovation.

UAE Red Crescent to help build shelters for refugees Chairman of the board of the United Arab Emirates Red Crescent (UAERC) Ali Abdullah al‐Kabi and Peter Ford, representative of UNRWA's commissioner general, signed Tuesday two agreements for the rehabilitation of shelters and relief activities in Palestinian camps in Lebanon.

Economic Desk

434 UAE capable of counterng impacts of global economic crisis The UAE has one of the world's most successful models in the tourism sector, and Sharjah has been always committed to making a significant contribution to the UAE's growth in the tourism sector, said Sheik Sultan bin Ahmed Al Qassimi, Chairman of the Sharjah Commerce and Tourism Development Authority (SCTDA).

"The UAE is capable of countering the impacts of the current global economic crisis", he stressed "The impact of the global economic crisis on Sharjah's tourism sector since the beginning of the year has been slight, as evidenced by the SCTDA's statistical report issued at the end of January, proving the resilience of the emirate's tourism sector", he added in statements on the sidelines of the SCTDA's participation in the International Tourism Bourse (ITB), being held in Berlin from 11 to 15 March 2009.

UAE Travel '&' Tourism Sector Ranks "1st" in the Middle East '&' Africa Region HE Hani Rashid Al Hamli Secretary‐General of Dubai Economic Council, pointed to the vital role played by the travel and tourism sector (T'&'T) in promoting economic growth and development at the global level, where the sector contributes to raising employment rates, increases national income, and improves the balance of payments, as well as value‐added for this sector at the level of social development and quality of life.

The T'&'T Competitiveness Report 2009 revealed that Switzerland, Austria and Germany were the top three countries in the Travel '&' Tourism Competitiveness Index (TTCI) whereas UAE ranked (33) among (133) countries in the overall ranking. UAE ranked (1st) in the Middle East and Africa region (including Gulf countries) moving up seven places since last year overtaking Qatar and Tunisia.

Although UAE is not enriched with natural and cultural resources, it has other competitiveness advantages in T'&'T sector. UAE ranked (1st) in destination‐marketing campaigns, and ranked (3rd) in government prioritizing the sector. Moving up one place since last year UAE ranked (4th) in air transport infrastructure and ranked (10th) in having a positive attitude toward foreign travelers. Likewise UAE is characterized and famous of being very safe from crime and violence where it ranked (14th) out of all countries.

35 big hotels to open in UAE by 2010

435 More than half of the dozens of planned hotel openings in the Gulf over the next two years will be in the UAE, creating thousands of new hotel rooms that will put pressure on rates amid a global travel business decline.

UAE has a date with new Guinness world record The UAE has been officially recognised as the leading cultivator of date palms in the world with 42 million trees, it was announced on Sunday.

"The UAE has the largest number of date palm trees among the countries of the world with 42 million trees," Jenny Karampoiki, records manager of the Guinness World Records, said at a presentation ceremony held at the Emirates Palace Hotel to honour the winners of the inaugural Khalifa International Date Palm Awards.

Sheikh Khalifa defends UAE response to economic crisis Khalifa has every confidence that the UAE will be able to counter any temporary burdens resulting from the economic crisis. People had got the wrong idea about the relationship between the Abu Dhabi and Dubai governments, with the former having no desire to acquire companies owned by the latter, the UAE president said on Monday.

Malaysian Companies Show Competitiveness In UAE, Says Minister Malaysian companies which have won contracts in the United Arab Emirates (UAE) have something to be proud of as they are dealing with a highly competitive environment.

According to UAE's Foreign Trade Minister Sheikha Lubna Al Qasimi, many companies would come with the intention of doing business in this Gulf nation. But only those who were competitive could be successful, she told a news conference at the opening of the Malaysia Services Exhibition (MSE) 2009 at the Dubai Airport Expo here Tuesday.

Canada, UAE sign trade pact

Canada's Trade Minister Stockwell Day on Wednesday signed a trade, cooperation and investment pact with the United Arab Emirates, his office said.

436

"The United Arab Emirates is Canada's most important export market in the Middle East," Day said in a statement. Two‐way trade totaled 1.8 billion dollars in 2008. Canadian exports to the Emirates increased 28.8 percent over the previous year.

UAE is biggest market in Mena for US exports

US exports to the UAE have grown multifold since the beginning of the century and placed the country as the top list of America's importers in Middle East and North Africa (Mena) region, US ambassador to the UAE Richard Olson said Wednesday.

Oil & Gas

Libya, UAE group to upgrade Ras Lanuf refinery Libya's National Oil Corp. and the Trusta group, a UAE energy consortium, agreed to establish a joint venture to improve the output and product quality of the 220,000 b/d Ras Lanuf refinery in Libya. The two companies will be equal partners in the $375 million Libyan Emirates Refinery Co. venture.

UAE, Korea to set up 1,000MW power plant Sindh Chief Minister (CM) Qaim Ali Shah held a meeting with an eight‐member delegation of UAE’s Bin Din Group and Korea’s Petroleum Development Corporation (PEDCO) on Saturday to discuss the working on development blocks of the Thar Coal Project and considered the details of the Letter of Intent. According to details, PEDCO would work for three years in Block 4 and 8 and start drilling and boring for coal mining where after power generation will start. The Korean company will setup a 1000MW mine‐mouth thermal power plant by using Thar coal reserves.

UAE oil earns $6bn in 2009 The UAE earned around $6 billion from oil exports in the first two months of 2009.

Official US figures showed Opec's total crude export earnings were $61bn in January and February, far below its average monthly income last year, when the revenues climbed to their

437 highest ever level. The figures by the Energy Information Administration (EIA) of the US Department of Energy showed the UAE and Iran were the second largest earners in the 12‐ nation Opec, as Saudi Arabia remained on top of the list despite a steep fall in its earnings.

The UAE's income in the first two months was lower than its average monthly earnings of around $7.5bn in 2008, when its oil exports peaked at nearly $89bn because of a surge in crude prices globally and its increased output.

UAE output falls to 2.25m bpd in February The UAE produced 2.25 million barrels per day (bpd) of crude oil in February, after complying with the supply cuts earlier announced by the Organisation of Petroleum Exporting Countries (Opec) that saw its output drop from 2.36 million bpd in January, latest estimates by the International Energy Agency (IEA) show.

"The UAE reduced production by 110,000 bpd from January levels in February. Target adherence is now pegged at 93 per cent and expectations are that the Emirates will near full compliance in March due to field maintenance work and cutbacks in customer nominations," said the Paris‐ based IEA, which advises 28 industrialised nations of the world on energy policy.

IEA said the UAE's sustainable oil production capacity is 2.85 million bpd. A global financial crisis which took the world into its grip in the second half of 2008, wiped out more than $25 trillion (Dh91.83 trillion) from the financial system and slowed the oil demand worldwide as economies slowed. The crisis crashed the oil market.

BAHRAIN

Social Desk

Bahraini Scholar Slams Violence Against ExpatsSuad Hamada

While condemning the new wave of violence against expatriates a leading Bahraini opposition scholar called upon the protesting youths to use peaceful ways for demanding more political rights rather than indulging in acts of violence.

While addressing a seminar in Karzakan — a village hit by such violence — Shaikh Abdulajalil Muqdad condemned violent acts like attacks on security forces or setting fire to public utilities by the unruly youth. “I’m urging those who seek violence to come to their sense not as a

438 political leader but as a religious scholar who is responsible of highlighting the clashing of such acts with Islam and its peaceful calling,” the opposition scholar said.

A police patrol was also set on fire.

On Tuesday, a stolen minibus was set on fire to block traffic in Al Seef district that is considered an important tourism destination in Bahrain and is frequented by families.

Recession Forces Dowry to Go Up in BahrainSuad Hamada

A marriage bureau official in Bahrain has said that the current global recession has not affected the number of marriages in the kingdom as yet but doubled the amount of dowry paid to brides.

Talking to Khaleej Times, Hisham Al Rumathi said that he was expecting a decline in the number of marriages in the wake of ongoing financial crunch but contrary to his fears the number of people tying the knot has increased. “The average amount of dowries earlier was used to be BD3,000 ($7,500), but it has gone up to BD6,000 ($15,000) in less than a year.”

Bahraini set for Belfast conference

BAHRAIN will be represented at a major education conference taking place in Northern Ireland later this year.

Bright Beginnings Day Care Centre founder Anisa Asad has received a grant to attend the World Forum on Early Care and Education (ECE) in Belfast. She is believed to be the first Bahraini woman taking part in the event and will join more than 600 early childhood administrators, trainers, caregivers, public officials and advocates from more than 70 countries.

IR Desk

439 Bahrain to set up $500m Manila agri JV

Bahrain and the Philippines have signed an agreement to set up a $500 million joint agricultural company to help achieve food sufficiency in the kingdom and the GCC states.

The Philippines government has allocated about 10,000 hectares of arable land to grow rice, corn, sugar plants and pineapple in addition to vegetables. The total investment in the project would amount to about $500 million, starting with $50 million for the first year. It will also provide job opportunities for 100,000 Filipino nationals.

Iran to blame for Morocco's severing of ties: minister

Iran is wholly to blame for Morocco's decision to sever ties with the Islamic republic in a spat over Bahrain as it had shown lack of respect for the North African kingdom, Rabat's foreign minister said Saturday.

Morocco broke diplomatic relations with Iran on March 6, after leaping to Bahrain's defence when a senior Iranian official questioned the sovereignty of the Gulf state.

Moroccan Foreign Minister Taieb Fassi Fihri told AFP in an interview that Iran had singled out Morocco by calling in its representative in Tehran. Rabat had accused Tehran of seeking to impose Shiite Muslim ideology on the Sunni‐ruled Gulf Arab kingdom, and Fihri said it had been similarly "active" in Morocco. Iran denied any interference in Morocco's religious affairs.

Tehran-Manama friendly relations guarantee regional tranquility

Bahriani King Hamad bin Issa al‐Khalifa said on Tuesday that Tehran‐Manama friendly relations guarantee regional tranquility, stability and prosperity.

He made the remarks in a meeting with visiting Iranian Foreign Minister Manouchehr Mottaki who arrived in the Bahraini capital on Monday on the third leg of his regional tour which had

440 already taken him to Kuwait and Saudi Arabia. He reiterated that Manama’s policy is based on convergence with Tehran, adding that the two countries enjoy good neighborly relations. Bahrain will never let foreign countries make use of it as a means to interfere in the regional domestic affairs, the King said.

Nothing can damage Iran-Bahrain ties: PM

Bahriani Prime Minister Sheikh Khalifa bin Salman al‐Khalifa told Mottaki that nothing can damage Tehran‐Manama ties.

In a meeting on Tuesday, the Bahraini premier said that Manama’s policy is based on convergence with Tehran, adding that the two countries enjoy good neighborly relations. He added that the two nations enjoy ancient, amicable and consolidated relations in all areas. The Bahraini PM reiterated that expansion of bilateral relations between the two states is to the interest of both nations as well as the entire region. “We would not let enemy damage the existing amicable ties between the two nations,” he added. Mottaki reiterated that consolidation of unity and solidarity among Islamic states would disappoint enemies.

Economic Desk

The impact of global crisis in Bahrain has been minimal

Not even one financial institution in Bahrain has gone "bust" thanks to the country's prudent economic policies, a top official from the country's economic development board said.

And although affected by the crisis, the impact has so far been minimal, said Trevor Stokes, Executive Director, Business Development, Bahrain Economic Development Board. "None of Bahrain's more than 400 financial institutions has gone bust," Stokes told Emirates Business on the sidelines of the World CEO Forum held in Dubai yesterday. He added: "Bahrain has been very prudent and has conducted business with a high degree of control and good leadership from the government to ensure that it's economy did not overheat, that is why inflation is controlled below three per cent last year at a time when the rest of the region was in double digit figures.

441

Bahrain 'poised for quick economic recovery'

Bahrain will bounce back stronger than ever from the impact of the global recession, say experts.

"Bahrain is as well‐placed as any country to benefit as the world recovers," Economic Development Board executive director of business development Trevor Stokes told 250 chief executive officers and business leaders at the World CEO Forum in Dubai, yesterday. "Bahrain is already ready, it's open, it's up and running for business. Bahrain has been an established business centre, particularly in financial services. It is a country that has seen downturns before, learnt lessons and come back stronger.

Oil & Gas

Bahrain Oil and Gas Report Q1 2009

Bahrain Oil and Gas Report Q1 2009

In this report, we forecast that Bahrain will account for 0.39% of Middle East regional oil demand by 2013, while providing just 0.11% of supply. Regional oil use of 8.24mn b/d in 2001 rose to 10.61mn b/d in 2007. It should average 10.86mn barrels per day (b/d) in 2008 and then rise to around 12.10mn b/d by 2013. Regional oil production was 22.87mn b/d in 2001, and in 2007 averaged 25.24mn b/d. It is set to rise to 29.87mn b/d by 2013. In terms of natural gas, in 2007 the region consumed 370bn cubic metres (bcm), with demand of 574bcm targeted for 2013, which represents 55% growth. Production of 363bcm in 2007 should reach 618bcm in 2013 (+70%), which implies net exports rising to 44bcm by the end of the period. Bahrain´s share of gas consumption in 2007 was 2.43%, while its share of production is put at 3.17%. By 2013, its share of gas consumption is forecast to be 2.78%, with the country accounting for just 2.10% of supply.

442 KUWAIT

Political Desk

Political, moral, leadership crises enveloping Kuwait’

Kuwait is currently suffering from political, moral and leadership crises, since the concept of parliamentary work for the benefit of the nation and its citizens is just an illusion, reports Al‐Rai quoting MP Saleh Al‐Mulla. Al‐Mulla made the statement in a seminar organized Thursday by an independent party from the Gulf University for Science and Technology (GUST) at the Bodi Diwaniya in Al‐Salam area. “Before joining the Parliament, I had a notion that it is an institution keen on protecting the welfare of Kuwait and its people, but it turned out to be a false impression,” Al‐Mulla lamented. He also claimed there are puppets in the Parliament, who are being controlled by political blocs outside the Assembly that seek personal gains at the expense of the nation and its citizens. He asserted the main feature of the incumbent Parliament is the misuse of the constitutional tools to impede development, but he reaffirmed his respect for the constitutional rights of the MPs. Al‐Mulla opined the interpellation request of the Islamic Constitutional Movement (ICM) is a grilling from one government to another, while that of Dr Faisal Al‐Muslim is nothing but a ‘sentimental’ move. He also accused some MPs of concealing their other nationalities.

KUWAIT: Emir dissolves parliament amid bickering

The small emirate of Kuwait witnessed a blow to its struggling democracy when the ruler of the oil‐rich nation decided to disband the parliament on Wednesday, proving that the implementation of a Western‐style democracy in a Persian Gulf region dominated by feudal mentalities remains a challenge.

The decision to dissolve the legislature for the second time in less than a year and call for early elections in two months was the result of an ongoing political crisis between the legislative powers and the Cabinet, at a time when the nation is facing the woes of the economic crisis and falling oil prices. "The persistence of deference and disputes in the parliamentary life [exposes] national unity and the higher interests of the country to grave risks,” Sheik Sabah al Ahmed al Jabbar al Sabah, Kuwait’s ruler, said in an address to the nation, according to the official news agency, KUNA.

443 The decision came after the Cabinet resigned this week in protest of lawmakers’ attempts to question the prime minister for allegedly misusing public funds and mismanaging the country. Members of parliament theoretically have the authority to oversee ministers’ performance and impeach them on suspicion of corruption or mishandling of public budgets.

But in practice, the last word belongs to the country’s ruler, who holds the power to suspend the constitution. The current prime minister is the emir's nephew, and other members of the ruling family are on the Cabinet.

Kuwait remains an odd exception among autocratic Arab kingdoms in the Persian Gulf where elected parliaments do not even exist. Observers say, however, that the continuous bickering between parliament members and the government has been hindering economic development. Some members of parliament abuse the democratic tools given to them, said Mohammed Rumaihi, editor in chief of the Kuwaiti daily Awan.

Since its establishment after the nation’s 1961 independence from Britain, the parliament has been dissolved five times, including a suspension for almost six years between 1986 and 1992. Even if the new elections bring in new names to the parliament, nothing guarantees that a new row between lawmakers and ministers won't drive the country into a new political crisis anytime soon.

Kuwait dissolves parliament, set for $5 billion plan

Kuwait's ruler dissolved parliament on Wednesday, setting elections within two months to end a long‐running political crisis in the Gulf Arab country.

The second dissolution of parliament in a year could allow the government to pass an economic $5 billion rescue plan by decree before the elections. But a row with the assembly might flare up again as Islamists are expected to dominate once more.

Lawmakers said Emir Sheikh Sabah al‐Ahmad al‐Sabah was expected to appoint his brother, Crown Prince Sheikh Nawaf al‐Ahmad al‐Sabah, as the new prime minister after the vote. Kuwait's ruler did not reveal his plans for the premiership after accepting the resignation of the cabinet led by his nephew Sheikh Nasser al‐Mohammad al‐Sabah, on Monday. Sheikh Nasser's earlier cabinet resigned in November after a similar row.

444 The ruler, who has the last say in the OPEC country, did not say when the vote would be held but under the constitution it has to be within two months. "Regrettable practices (in parliament) tarnished the freedom and democracy in Kuwait, and it was obvious that these practices ruined cooperation between the legislative and executive authorities and spread atmospheres of tension and chaos," the emir said in a televised speech. Islamist, tribal and liberal deputies have been criticizing ministers over the past three years, which have seen five cabinets come and go, many preferring to resign rather than face extensive questioning or a no‐confidence vote.

The ruler said he would act again if necessary: "Everybody should know that based on my national responsibility, I will not hesitate to take any step to maintain the security and stability of the nation, protecting its interest and principles." Local media had speculated the emir would suspend the assembly for several years like predecessors did in the past.

UNDERLYING CONFLICT

The crisis reflects an underlying conflict between the pro‐Western government and Islamist lawmakers who wanted to question the caretaker prime minister on his management of an economic crisis and alleged misuse of public funds.

The crisis has delayed economic reforms, including the stimulus plan to deal with the global economic crisis, which includes bank guarantees to help the battered financial sector. The caretaker government could issue the stimulus package without parliament and some analysts say the next assembly would then approve it since implementation would have started.

Moody's: Kuwait on review after assembly dismissed

Moody's Investors Service on Thursday placed Kuwait's sovereign rating under review for a possible downgrade, citing concerns about a political crisis that led to the dissolution of the oil‐ rich nation's parliament.

But in one the Middle East's most vibrant — and rare — democracies, the booting of the legislature a day earlier by Kuwait's emir was greeted as a chance to break free from the infighting that has halted a much-awaited $5.15 billion economic stimulus bill and led to the scrapping of two major projects all in the span of around three months.

445 Human Rights/ Trafficking Desk

Kuwait committed to all human rights: diplomat

The State of Kuwait said Friday that it was committed to fulfilling all human rights, which it described as indivisible. Kuwaiti diplomat Alia Al‐Muzaini, when commenting on the report on freedom of religion or belief presented to the 10th Session of the Human Rights Council, thanked the Special Rapporteur and added that with regard to a call made by the Secretary‐ General on attacks on religion, everyone needed to look at their respective responsibilities in this context, and specifically with the recent discrimination facing Islam. Kuwait, she said, called on the international community to seek moderation and to combat discrimination in this context. She added that His Highness the Amir of Kuwait said, while addressing the General Assembly last November, that combating discrimination was inherent in the very essence and preaching of religions.

Nuclear Energy Desk

Kuwait says eyes nuclear cooperation with France

Kuwait will cooperate with France in the field of nuclear power, the deputy prime minister of the Gulf nation said on Friday, hinting it could take a stake in French nuclear group Areva (CEPFi.PA).

Speaking after a meeting with President Nicolas Sarkozy, Sheikh Jaber Moubarak Al‐Hamad Al‐ Sabah said the two leaders had discussed the possible purchase of French military material and the issue of energy and nuclear reactors. Asked if Kuwait would cooperate with France in the domain of nuclear energy for civilian use, he said: "Yes."

Oil & Gas

Kuwait says all options open ahead of OPEC meet

446 Kuwaiti Oil Minister Sheikh Ahmad Abdullah al‐Sabah said on Friday that all options were open ahead of a weekend OPEC meeting that will discuss possible oil output cuts amid falling crude prices.

"OPEC's decision will be taken collectively and not individually," the oil minister told the official KUNA news agency ahead of Sunday's meeting in Vienna. "The discussions and the data that will be highlighted during the meeting will determine whether there will be a decision to keep the current quota or whether there is an increase in supply that requires more production cuts."

India ONGC JV to bid for Kuwait oil spill contract

A joint venture of India's top explorer, Oil & Natural Gas Corp's (ONGC.BO), will bid for a $3 billion contract to clean up oil spills in Kuwait from the Gulf War in 1991, a company executive said on Thursday.

ONGC‐TERI, a joint venture between ONGC and The Energy and Resources Institute (TERI), will submit a techncial bid by April 1 for the first phase of the contract offered by Kuwait Oil Co, A.K. Hazarika, the chairman of ONGC‐TERI, told Reuters by telephone.

OMAN

IR Desk

Singaporeans in Oman urged to uphold country's brand name

Singaporeans in Oman play an important role in strengthening the friendship between both countries, said President S R Nathan at a gathering of Singaporeans on the second day of his state visit to the Gulf country.

Although there are only about 50 Singaporeans living here, he said Singapore is counting on them to uphold its brand name. He also urged more Singapore companies to seek out opportunities here.

447 IRAN AND UZBEKISTAN TO LINK CHINA WITH GULF OF OMAN

Iran and Uzbekistan want to up open new regional transit routes linking Iran with China.

"Tehran and Tashkent should benefit from their common interests and deepen their ties in different fields," Iranian Foreign Minister Manouchehr Mottaki said following a meeting with Uzbek Deputy Foreign Minister Anvar Solihbaev in Tehran, March 14. Topping the agenda are plans to expand the rail network between Iran’s Chabahar Port and China via Uzbekistan, Afghanistan and Tajikistan, The Tehran Times reported March 16.

Energy and the fight against terrorism also deserve increased cooperation, the ministers said, adding that growing extremism in the region was due to the West’s "inappropriate behavior" and "wrong approaches."

Tunisia , Oman ink MoU on digital certification

Oman Information Technology Authority (ITA) signed a memorandum of understanding with the National Digital Certification Agency (Agence Nationale de Certification Electronique‐ANCE of Tunisia) to undertake cooperative efforts to establish the Digital Certification system for the Sultanate.

The main objective of this MoU is to strengthen the cooperation between the two countries in the field of security and validation of electronic exchanges and to exchange experience and expertise in the field of secure digital signatures and the role of a certification authority.

Economic Desk

Oman inflation doubled to 12.4% in 2008

The inflation dropped to 9.4 per cent in January this year. A surge in food prices and rents allied with higher public spending to more than double inflation in Oman in 2008 but the rate is projected to decline sharply in 2009, official figures showed yesterday.

448 Experts said inflation would likely plunge in 2009 as is the case with other Gulf oil producers mainly due to a steep fall in global commodity prices, a slowdown in the domestic economy because of low oil prices and an expected slower growth in public spending. The rate has already started to climb down, with data released yesterday by the Omani Ministry of National Economy showing inflation dropped to 9.4 per cent in January from around 11.8 per cent in December.

Oman Set to Introduce MVNOs by April

Oman is set to become the first country in the Middle East to introduce Mobile Virtual Network Operators (MVNOs), with two mobile reselling companies ready to launch their services by April.

QATAR

IR Desk

Iran Calls for Multilateral Cooperation to Resolve Regional Problems Iranian Foreign Minister Manouchehr Mottaki called on the Persian Gulf states to adopt a collective approach towards settlement of regional problems.

"Iran has always laid emphasis on the policy that regional problems can merely be solved via a multilateral approach," Mottaki said, in a meeting with Qatari officials on Tuesday. The Iranian foreign minister arrived in Qatar on the last leg of a 4‐day tour of the Persian Gulf Arab states and met with Qatari Prime Minister Hamad bin Jasim bin Jabir al‐Thani who also serves as the country's Foreign Minister.

Mottaki started his regional tour on Sunday and, besides Qatar, he has so far visited Saudi Arabia, Kuwait, Bahrain and the UAE.

Also during the meeting, the two sides discussed possible mechanisms for fixing real and fair prices for oil supplies to consumer countries.

ICC urges Qatar to cooperate with Beshir arrest warrant

The International Criminial Court urged Qatar on Saturday to cooperate with its arrest warrant against Sudanese President Omar al‐Beshir when he visits Doha later this month.

449

Qatar, which is not a signatory to the Rome Statute that established the court, has invited Beshir to an Arab summit on March 30 despite an international warrant for his arrest on charges of war crimes in Darfur.

"The court counts on the cooperation of states and therefore of Qatar, but it does not have its own police force," ICC spokeswoman Laurence Blairon told AFP. "Qatar is not a state member of the Rome Statute, the founding text of the ICC, but it is a member of the United Nations," Blairon said. "The (UN) Security Council resolution that requires all states to cooperate with the court therefore applies to Qatar," she added.

UN chief to visit Moscow, Qatar and Europe

Secretary‐General Ban Ki‐moon leaves on a six‐nation trip next week that will focus on the global financial crisis, the conflict in Afghanistan, Middle East peace efforts and religious tensions, the U.N. said Thursday.The U.N. chief will visit Moscow, Qatar, The Hague, London, Paris and Istanbul during the trip, U.N. spokeswoman Michele Montas said.

Economic Desk

Qatar fund to target food and energy

Qatar’s sovereign wealth fund will turn its focus to commodities, particularly food and energy, in the second half of the year, a senior official said on Thursday.

Hussein al‐Abdullah, executive director of the Qatar Investment Authority, which is estimated to have assets of about $60bn (€46.6bn, £43.1bn), said the fund would do “nothing” until the beginning of the second half of the year, when it will review its strategy.

Vodafone Qatar to launch IPO

450 Vodafone Qatar, which won the country's second mobile telephone licence last year, said on Sunday it plans to sell a 40 percent stake to the public and list the shares on the Doha stock exchange.

16 firms head to Qatar

SIXTEEN Singapore organisations are heading to Qatar to explore business opportunities in the Gulf state's healthcare sector.

The 25‐member delegation will be in Qatar from Monday to Thursday, said International Enterprise Singapore (IE Singapore), which expects healthcare demand in the Gulf Cooperation Council (GCC) region to rise by 240 per cent over the next 20 years.

Oil & Gas

OPEC must meet previous cuts before acting again: Qatar

OPEC countries must make sure that previous cuts in output are being adhered to before deciding further reductions, Qatar’s Energy Minister said yesterday.

“We should have full compliance and then we can talk in the future about what we should do,” the Deputy Premier and Minister of Energy and Industry H E Abdullah bin Hamad Al Attiyah told reporters. “I’m not going to propose for any new cut before we’ve first checked compliance. Even if (compliance) is 80 percent, that means there are 800,000 barrels out,” the Minister said.

451

BUSINESS AND POLITICS IN THE MUSLIM WORLD

SOUTH EAST ASIA

Tatheer Zahra Sherazi

Monitoring Report

From 13 March to 20 March

• Indonesia Political Front

• Indonesia kicks off election season • Indonesian President Yudhoyono's party to seek coalition • Last week, former president Megawati Sukarnoputri and Yudhoyono’s vice president, Jusuf Kalla, met amid growing speculation their respective parties, • Wish for peaceful Indonesian election • Yudhoyono well placed in Indonesian polls • Indonesian parties call for peaceful campaign • More than 11,000 candidates contesting for parliamentary seats in Indonesia: • UPDATE 2-INDONESIA ELECTION EYE-Megawati to talk with PPP • Indonesia: Political Islam under threat, analysts say – • US gives a long overdue nod to Indonesia • Indonesian electoral lists in dispute before polls(Reuters) • Clinton in Indonesia: What She Missed • Free Papua founder to hold 'peace talk' with govt Strategic Front

• Separatists attack Indonesia's Papua, killing one solider • Letters: Singapore-Indonesia defense talks • Dive the Nusa Tenggara islands, Indonesia • Located between the Flores and Savu Seas, in East Nusa Tenggara, Alor island sits in the Pantar Strait, a world-class destination for deep-sea diving. • A small island with many faces Economic Front

• Obama discusses economic crisis with Indonesia's presidentLast Social Front Environmental Front

• Strong quake between Philippines, Indonesia • Malaysia

452 Political Front

• BN Election: Better to visit at night, says Khairy • PM will contribute to Islam even upon retirement • Malaysia is roiled by a crisis of democracy • Malacca CM will attend assembly • Khir: Umno Youth can be people's voice • EDITORIAL: Cleaning up Umno Strategic Front Economic Front

• Global meltdown hurt performance, says EPF • Malaysian firm joins Microsoft to release e-payment solution • -Malaysia's IOI sees palm oil at 2,000 rgt/ • Investors Optimistic Of Global Economy But Hesitating • China uses vouchers to spur consumer spending • Japan's Honda sees rising sales in Malaysia in 2009 despite economic gloom • Malaysia Aims To Be Among Top 10 Trading Nations • Economic crisis brings attractive property deals Social Front

• Action against Bar for using 'Allah' • Food technology research center inaugurated in Hanoi Environmental Front

• Philippine

Political Front

• Obama Calls Arroyo, Talks To Her About VFA • Manila open to changes in Mindanao law Strategic Front

• Vietnam protests Philippine maritime law: report. Economic Front

• Philippine bourse seen rising • Most corrupt govt agencies in Pulse poll issue reactions • Slow growth of earnings alarms ADB Social Front

• Three more kidnapped in Mindanao • Philippines hostage crisis enters third month(AFP) • Kidnappings worry OIC • European Parliament resolution of 12 March 2009 on the Philippines • Abu Sayyaf IN two fierce encounters in Indanan

453 • Philippine Rebels Threaten to Behead Hostage • Filipino woman who accused US Marine of rape changes testimony, emigrates to US • Militants to free Red Cross hostage in Philippines Environmental Front

• Thailand Political Front

• Thai anti-gvt group to hold mass rally on March 29(Xinhua) • Ex-PM, deputy face charges in Thailand • Ex-Thai PM could be charged for protest crackdown • Restricted zone for Thai anti-gov't protestors to be created • Thai anti-gov't protesters rally amid no-confidence debate . • Army to root out 'Taksin plan' • Puea Thai hopes to dent government's clean image • Thailand Explores Greater Autonomy for Largely Muslim Provinces Strategic Front Economic Front

• A time to reform the economy • Thai PM says countries must commit to fiscal boost Abhisit calls on US, Europe to reject trade protectionism

• Thailand cannot afford to lose export markets • The US and Europe are the key markets for Thai exports. Social Front

• New 'Al-Qaeda' in SE Asia Millions affected by drought across Thailand

Environmental Front

• Singapore

Political Front Strategic Front Economic Front

• Cracks appear in Lee's mantle • Singapore worst-hit in southeast Asia • Singapore, Oman bilateral ties set to grow stronger • Singapore goes on a million deeds challenge • Singapore shares close down 1.72%

454 Social Front

• Number of dengue cases in S'pore down in last few weeks • Three religious landmarks receive first grants from Nat'l Monuments Fund • Physically disabled volunteers offer e-filing tax service to taxi drivers Environmental Front

• Vietnam Political Front Strategic Front

• Vietnam protests Philippine maritime law: report Economic Front

• Vietnam's Agent Orange Victims Feel Cheated by U.S. Court • Vietnam growth seen at 0.3% • Vietnam's exports would fall in value this year by 31 per cent, he said. Social Front

• Vietnam bus plunge 'kills 10' • Vietnam foreign investment lower but still strong • Analysts say Vietnam must boost infrastructure spending • Vietnam experts calm despite clashing growth estimates • Vietnam GDP growth to slump to 0.3 percent: UK research firm • IMF downgrades growth forecast for • Bird flu kills child in VietnamLast Updated: 9 hours 11 minutes ago • Vietnam govt sees up to 400,000 more jobless in '09 Environmental Front

• Laos Political Front Strategic Front Economic Front ¾ Lao-Vietnam trade to reach US$ 1 billion by 2010 ¾ Financial turmoil has minimal impact on gold transactions ¾ Russia to help Laos build three hydropower plants ¾ Govt speeds up establishment of one door service Social Front ¾ US gives medical aids to Laos ¾ Thai People’s Supreme Prosecutors delegation on two–day working visit to ¾ Five youths countries exchange cultures ¾ Sekong water supply plant construction kicked off

455 ¾ Belgium gives four million Euro to health care Environmental Front

• Cambodia Political Front Strategic Front Economic Front Social Front

• Comfrel criticises CPP over Rainsy • Khmer Krom released • PM warns of riverbank collapse • New construction technology now in Cambodia Environmental Front

• Brunei Political Front

• Singapore delegation in Brunei for 14th exchange visit Strategic Front

• Brunei denies it has dropped claim over Sarawak Economic Front Social Front

• Women's role in progression of Islam • Local Islamic bank cause of zakat delay. Environmental Front

456

Summary

This week there are mixed type of news in south East Asia because of many ups and downs in at political, economic and social front.

At political front Southeast Asia's biggest democracy holds parliamentary elections on April 9. The polls will also determine which parties can field candidates for presidential elections on July 8.

In Indonesia political parties have begun their campaigns for the upcoming general elections. Local and parliamentary elections will be held in April, followed by presidential elections in July. Representatives of the 38 political parties fielding candidates met in Jakarta to sign a declaration calling for a peaceful campaigning.In these elections the Indonesian President Susilo Bambang Yudhoyono's Democratic Party (PD) remains seemingly unworried about a possible coalition between the two largest winning parties, namely Indonesian Democratic Party of Struggle (PDI-P) and the Golkar Party. As the large number of undecided voters makes the outcome hard to predict but largely Muslim voters are expected to clear the way for the re-election of Susilo Bambang Yudhoyono as president.

In Malaysia Umno Youth should become the voice of the people if Barisan Nasional wants to regain the confidence of the people. While opinion of independent newspapers is different as the expressions of displeasure, charges of selective prosecution and insinuations of hatchet jobs over the disciplinary board's decisions on Tuesday show how complex and combustible the task of lancing the boil of endemic vote-buying in Umno is going to be.

The Philippines is open to amending a law creating a Muslim autonomous region on a restive southern island officials said yesterday, after two days of talks with a group of former separatist guerrillas.

Thailand, A former prime minister of Thailand and his deputy should face criminal charges for last year's deadly dispersal of anti-government protesters blocking parliament, an official commission said.

While resent Thai provincial governors have been directed to create a restricted zone for the anti-government group to demonstrate during an official visit to provincial areas.

There is a further improvement regarding Muslims that Thai government policy review of the largely Muslim southern provinces is considering granting greater local autonomy

457 with reforms including introduction of Sharia Law through Islamic courts. The strategy is part of efforts to bring to an end a five-year insurgency that has cost more than 3,000 lives.

At Geo-Strategic Front

Vietnam protested against a bill signed into law in the Philippines, saying that it lays claim to parts of the disputed Spratly Islands in the South China Sea, state media said Friday."Vietnam protests against the act and calls on the Philippines to refrain from undertaking similar actions so as not to affect peace and stability in the region and the growing ties between the two countries", foreign affairs spokesman Le Dung was quoted as saying in Vietnam News daily

At Economic Front

Malaysia's IOI Corp , the world's third-largest listed palm oil producer, said the price of crude palm oil could rise 20 percent due to falling domestic stockpiles. While Malaysia aims to be among the world's top 10 trading nations by 2020, International Trade and Industry Minister Tan Sri Muhyiddin Yassin said

Investors want to believe in an economic recovery but the prolonged financial crisis and caution on banks seems to be stopping them from putting cash into equities, according to Meryll Lynch Survey of Fund Managers for March.

Philippine, The Asian Development Bank (ADB) said the sluggish growth in earnings of Filipino workers over the last decade is “alarming,” particularly because the figures did not expand faster than the economic growth rate.

Singapore will be Southeast Asia's weakest economy, shrinking nearly 5 per cent this year, while Thailand faces its worst recession in 11 years, reflecting a collapse in exports across Asia, a Reuters poll shows.

Vietnam, Vietnam has attracted foreign direct investment pledges of 5.3 billion dollars so far this year, down 30 per cent from the same period last year, a government official said but The International Monetary Fund has downgraded its growth forecast for Vietnam to 4.75 per cent this year. It had earlier predicted a 5 per cent increase in real gross domestic product.

At Social Front

Philippine, Three Red Cross workers abducted by Muslim militants enter their third month in captivity in the southern Philippines on Sunday with no sign of progress in negotiations. And A rebel leader in the Philippines has threatened to behead a Red Cross worker being held hostage if Philippine troops pursue rebels fighters.

458 (OIC) yesterday expressed concern over an upsurge of kidnappings in the southern Philippines. Other western powers like EU ,Australia, US have also their concerned over the situation

Thailand, There is one strong criticism of the Government’s stimulus package – it just did not do enough to put money in the hands of the people and to cushion the impact of those affected and who will be affected by the crisis.

Drought has affected Thailand's 39 provinces and over 4 million people in 12,517 villages have been suffering from the disaster, a senior official at the Interior Ministry said

Vetnam, At least 10 people were killed when a bus carrying mostly Russian tourists plunged off a cliff in southern Vietnam, state media report. Nine of the dead were Russian; the other was a Vietnamese guide.

Between 300,000 and 400,000 people will lose their jobs in Vietnam this year, and some 6,000 Vietnamese workers have been sent home from abroad due to the global slowdown, the labour minister sai

At Environmental Front

The Summary of News items is below: • Indonesia Political Front

• Indonesia kicks off election season The Democratic Party supporters marching during an opening ceremony marking the start of the 20-day political campaign in Denpasar, Bali, Indonesia, yesterday.

• Indonesian President Yudhoyono's party to seek coalition The Indonesian President Susilo Bambang Yudhoyono's Democratic Party (PD) remains seemingly unworried about a possible coalition between the two largest winning parties, namely Indonesian Democratic Party of Struggle (PDI-P) and the Golkar Party.

• Last week, former president Megawati Sukarnoputri and Yudhoyono’s vice president, Jusuf Kalla, met amid growing speculation their respective parties, PDI-P and Golkar, may team up against Yudhoyono’s Democrat Party. But the large number of undecided voters makes the outcome hard to predict. New election rules, under which only parties or coalitions that won 20 percent of the votes or 25 percent of the seats can field presidential candidates, could turn minor parties into kingmakers as the main parties seek alliances

459 • Wish for peaceful Indonesian election THIS week saw the opening of the general elections for our neighbour Indonesia with participants agreeing to hold as its initial stage, the so-called kampanye damai or peaceful campaign rallies. The expression probably sounds strange to our ears, though very telling because Indonesia, with its population of more than 240 million people, has a history of election-related violence and disputes.

• Yudhoyono well placed in Indonesian polls Formal campaigning opened on Monday in Indonesia for elections to national, provincial and local legislatures in which 171m largely Muslim voters are expected to clear the way for the re-election of Susilo Bambang Yudhoyono as president.

• Indonesian parties call for peaceful campaign In Indonesia political parties have begun their campaigns for the upcoming general elections. Local and parliamentary elections will be held in April, followed by presidential elections in July. Representatives of the 38 political parties fielding candidates met in Jakarta to sign a declaration calling for a peaceful campaign. The traditional mass political rallies will begin on Tuesday.

• More than 11,000 candidates contesting for parliamentary seats in Indonesia: Monday marks the start of open campaigning for Indonesia's parliamentary elections. Mass rallies will be held across the country ahead of the polls on April 9. All 44 political parties contesting in the elections have pledged to hold peaceful campaigns, including the six local parties which are fighting for seats in Aceh - a provision of the peace deal struck between Aceh rebels and the government in 2005. Polls so far have predicted that the two biggest winners in the last election - Golkar and PDI-P - will still dominate this year's proceeding, but by a smaller margin.

• UPDATE 2-INDONESIA ELECTION EYE-Megawati to talk with PPP The following is a snapshot of recent developments in Indonesia's election campaign.

Southeast Asia's biggest democracy holds parliamentary elections on April 9. The polls will also determine which parties can field candidates for presidential elections on July 8.

• Indonesia: Political Islam under threat, analysts say – Once considered an imminent danger by some, political Islam in Indonesia, the world's largest Muslim country, is now under threat analysts say, as Islamic parties may find themselves impaled by their own expectations ahead of the country's legislative elections scheduled for 9 April. • US gives a long overdue nod to Indonesia Hillary Clinton deserves credit for making Indonesia the second country she visited as secretary of state. Indonesia may be the world's fourth most populous country, third largest democracy, and home to the world's largest community of Muslims, but it is also the most important country Americans know virtually nothing about. Clinton's visit sends

460 an early signal to Jakarta that Washington recognizes Indonesia's growing international clout and builds a firm foundation for future cooperation.

• Indonesian electoral lists in dispute before polls(Reuters) A dispute over a local election in one of Indonesia’s key provinces has raised fears about the validity of the country’s electoral lists just three weeks before Indonesians vote in national and local elections.The parliamentary elections on April 9, followed by the key presidential election on July 8, will determine the extent to which Southeast Asia’s biggest economy presses ahead with reforms to attract investment and drive economic growth, and are seen as a test of Indonesia’s commitment to democracy.

• Clinton in Indonesia: What She Missed She came to Indonesia as the new Secretary of State, and she came, she said, as a friend. Hilary Clinton met Indonesian President Susilo Bambang Yudhoyono and later told the press that she "wanted Jakarta's advice and counsel about how to reach out not only to the Muslim world but to Asia and beyond." This overture from Barack Obama's administration signaled the direction U.S. policy will take toward the fourth most populous nation on Earth.

• Free Papua founder to hold 'peace talk' with govt One of the founders and leading figures of the Free Papua Movement (OPM), Nicolas Jouwe, is visiting Indonesia for a meeting with Coordinating Minister for People's Welfare Aburizal Bakrie on Friday to help ending more than 40 years of hostility between the country and the separatist group. Strategic Front

• Separatists attack Indonesia's Papua, killing one solider The Liberation Army of separatist Free Papua Movement (OPM) had launched attacks on security posts in Tingginambut area, Puncak Jaya district, Papua province in Indonesia, since Friday and killed an Indonesian Army soldier on Saturday, the Antara news agency reported.

• Letters: Singapore-Indonesia defense talks I refer to your article Singapore-Indonesia Defense Talks at Stalemate (The Jakarta Post online, March 11, 2009) in which Minister Juwono Sudarsono was reported to have said that Singapore had "ceased" further discussions on the Defense Cooperation Agreement (DCA)

• Dive the Nusa Tenggara islands, Indonesia In sight of the tourist hotspot of Bali lies a chain of islands that will dazzle the most jaded travellerMy first experience of the bounties of the rather obscure Nusa Tenggara came about ten years ago when I dragged myself away from the world-famous waves of Bali

461 and travelled to the lesser-known island of Lombok. Ditching the surfboard, I headed to Indonesia's third-highest peak, Mount Rinjani, an active volcano located about three hours' drive from the island's capital, Mataram.

• Located between the Flores and Savu Seas, in East Nusa Tenggara, Alor island sits in the Pantar Strait, a world-class destination for deep-sea diving. Unlike many other parts of Indonesia, the Pantar Strait has avoided the ravages of cyanide and blast fishing. Instead the locals still practise traditional fishing methods, so the unique and incredibly diverse species of fish and coral remain both virgin and accessible.

• A small island with many faces For a small island (87 miles across and 50 miles wide), Bali encompasses an amazing diversity of terrain. And a great many of its communities display distinct personalities, so seeing one definitely does not mean you have seen them all.

Economic Front

• Obama discusses economic crisis with Indonesia's presidentLast US president Barack Obama has discussed the global economic crisis with Indonesian president Susilo Bambang Yudhoyono. Social Front Environmental Front

• Strong quake between Philippines, Indonesia A strong 6.0-magnitude earthquake struck in the ocean between the Philippines and Indonesia Monday, geologists said, but there were no immediate reports of injuries or damage. • Malaysia Political Front

• BN Election: Better to visit at night, says Khairy The three Umno Youth chief aspirants want fewer visits by ministers and their deputies to the three constituencies having by-elections.

• PM will contribute to Islam even upon retirement Prime Minister Datuk Seri Abdullah Ahmad will continue advocating the progress of Islam and the ummah even upon his retirement. The degree was conferred on him by Sultan Ahmad Shah of Pahang.

462 • Malaysia is roiled by a crisis of democracy A slew of political scandals gripping Malaysia and a transfer of power fraught with uncertainty have embroiled the elite here with exquisitely poor timing.

• Malacca CM will attend assembly Embattled Umno vice-president Datuk Seri Mohd Ali Rustam will attend the party's general assembly next week. Ali said, however, he has stopped campaigning following the disciplinary board's decision to bar him from contesting the deputy presidency.

• Khir: Umno Youth can be people's voice Umno Youth should become the voice of the people if Barisan Nasional wants to regain the confidence of the people.

• EDITORIAL: Cleaning up Umno THE expressions of displeasure, charges of selective prosecution and insinuations of hatchet jobs over the disciplinary board's decisions on Tuesday show how complex and combustible the task of lancing the boil of endemic vote-buying in Umno is going to be. Strategic Front

Economic Front

• Global meltdown hurt performance, says EPF The Employees Provident Fund (EPF) has declared a dividend of 4.5 per cent for 2008, its lowest since 2003, and warned members not to expect more than that for this year.

The EPF's dividend was 5.8 per cent for 2007, 5.15 per cent in 2006, five per cent in 2005, 4.75 per cent in 2004 and 4.50 per cent in 2003.

• Malaysian firm joins Microsoft to release e-payment solution A Malaysian financial software firm has released an e-payment solution for local SMEs using Microsoft Excel that will reduce business costs.

• -Malaysia's IOI sees palm oil at 2,000 rgt/ Malaysia's IOI Corp , the world's third-largest listed palm oil producer, said the price of crude palm oil could rise 20 percent due to falling domestic stockpiles.

• Investors Optimistic Of Global Economy But Hesitating Investors want to believe in an economic recovery but the prolonged financial crisis and caution on banks seems to be stopping them from putting cash into equities, according to Meryll Lynch Survey of Fund Managers for March.

• China uses vouchers to spur consumer spending For an oil-rich country with a gleaming, cosmopolitan capital and a large, well-educated middle class, the pessimism may seem hyperbolic. But analysts say the current political

463 woes strike at the heart of the functioning of government, damaging core institutions like the royalty, the judiciary, the police and the news media.

• Japan's Honda sees rising sales in Malaysia in 2009 despite economic gloom Japanese carmaker Honda said Thursday it was confident of increasing sales in Malaysia this year, one of the rare regional markets to buck the downtrend amid the global economic gloom.

• Malaysia Aims To Be Among Top 10 Trading Nations Malaysia aims to be among the world's top 10 trading nations by 2020, International Trade and Industry Minister Tan Sri Muhyiddin Yassin said Thursday.

• Economic crisis brings attractive property deals VISITORS to the Penang International Property Expo 2009 (PIP09) can look forward to attractive deals from developers in view of the tough competition caused by the property market meltdown.Developers will be geared to explore winning strategies and opportunities at the expo, said event director Ong Ban Seang. Social Front

• Action against Bar for using 'Allah' The Selangor Islamic Religious Council (MAIS) has decided to take legal action against the Malaysian Bar Council for using the word "Allah" in a poll published in its website. MAIS chairman Datuk Mohamad Adzib Mohd Isa said in a statement that the publication of the word had affected the sensitivities of Muslims.He said the use of the word "Allah" was sub judice as the the matter was still a subject of legal proceedings.MAIS also banned the song Allah Peduli by Indonesian singer Agnes Monica, said Adzib.

• Food technology research center inaugurated in Hanoi A research and training center for food technology worth US$1.9 million built with official development assistance (ODA) from Italy was inaugurated at the Hanoi University of Technology Monday.

The center is equipped with state-of-the-art production lines of milk, cheese, fruits and vegetables and will help students keep up with the latest automatic technologies in the food industry.It will also serve research in the field by providing tests and technology demonstrations. Environmental Front • Philippine

Political Front

464 • Obama Calls Arroyo, Talks To Her About VFA TV on Saturday evening reported under the headline “Obama finally calls Arroyo” that “US President Barack Obama finally called her up Friday morning [US time, Friday evening Manila time] and voiced support for the RP-US Visiting Forces Agreement [VFA].”

• Manila open to changes in Mindanao law The Philippines is open to amending a law creating a Muslim autonomous region on a restive southern island officials said yesterday, after two days of talks with a group of former separatist guerrillas. Strategic Front

• Vietnam protests Philippine maritime law: report Vietnam protested against a bill signed into law in the Philippines, saying that it lays claim to parts of the disputed Spratly Islands in the South China Sea, state media said Friday."Vietnam protests against the act and calls on the Philippines to refrain from undertaking similar actions so as not to affect peace and stability in the region and the growing ties between the two countries", foreign affairs spokesman Le Dung was quoted as saying in Vietnam News daily. Economic Front

• Philippine bourse seen rising Philippine share prices should gain next week, led by Philippine Long Distance Telephone, analysts said Friday. For the week to March 13, the composite index lost 64.06 points or 3.3 percent to 1,856.10. Average daily volume rose to 1.3 billion shares but value fell to 1.8 billion pesos ($36.8 million) compared to 854.6 million shares worth 1.935 billion pesos the previous week.

• Most corrupt govt agencies in Pulse poll issue reactions It’s “unfortunate” that its efforts are being “overshadowed by the controversies arising from recent issues,” the Department of Public Works and Highways (DPWH) said in a statement after being named as the “most corrupt” Philippine agency by the Pulse Asia 2009 Survey.

• Slow growth of earnings alarms ADB The Asian Development Bank (ADB) said the sluggish growth in earnings of Filipino workers over the last decade is “alarming,” particularly because the figures did not expand faster than the economic growth rate. Social Front

• Three more kidnapped in Mindanao

465 The spate of kidnappings in Mindanao remains unabated. Three more teachers in Naga, Zamboanga-Sibugay were abducted by a group of armed men. The victims were identified as Noemi Mandi, Jocelyn Enriquez, and Jocelyn Inion.

• Philippines hostage crisis enters third month(AFP) Three Red Cross workers abducted by Muslim militants enter their third month in captivity in the southern Philippines on Sunday with no sign of progress in negotiations.

• Kidnappings worry OIC A senior official of the Organisation of the Islamic Conference (OIC)yesterday expressed concern over an upsurge of kidnappings in the southern Philippines. Sayed El Masry, a special envoy of the OIC secretary general, said the kidnappings create instability and hamper social and economic development in the insurgency-wracked southern region of Mindanao.

“We are viewing this development with grave alarm because all our effort is to have stability in Mindanao,” he told a press briefing in Manila, where he attended a three-day review on the implementation of a 1996 peace agreement between the government and the MNLF.

El Masry hailed the MNLF for helping in efforts to free the kidnap victims, including three personnel of the International Committee of the Red Cross (ICRC) who were seized on January 15 by the Abu Sayyaf rebel group on Jolo island.

• European Parliament resolution of 12 March 2009 on the Philippines having regard to the Declaration of 15 September 2008 by the Presidency on behalf of the EU on the situation in Mindanao, having regard to the appeal issued by the Ambassadors of the European Union and the United States of America and the Australian Embassy's deputy head of mission on 29 January 2009,

• Abu Sayyaf IN two fierce encounters in Indanan Two separate clashes occurred on Monday between the Abu Sayyaf Group (ASG) and elements of the Philippine Marines, where according to a source in Jolo Commander Albader Parad was seriously wounded from sniper bullets. The whereabouts of the International Committee of the Red Cross (ICRC) hostages are still unknown as of press time.

• Philippine Rebels Threaten to Behead Hostage A rebel leader in the Philippines has threatened to behead a Red Cross worker being held hostage if Philippine troops pursue rebels fighters.

The leader of Abu Sayyaf rebels, Albader Parad, made the threat in a radio interview Wednesday, saying he would harm one of three Red Cross workers being held. He made the comment after clashes that killed at least three soldiers and two militants.

466 • Filipino woman who accused US Marine of rape changes testimony, emigrates to US A Filipino woman whose accusations of rape led to the high-profile conviction of a U.S. Marine has altered her testimony, saying in an affidavit that she may have led him to believe she wanted sex.

• Militants to free Red Cross hostage in Philippines Map of the Philippines locating Indanan, where the Islamic militant group Abu Sayyaf and their three Red Cross hostages are located.

Environmental Front • Thailand Political Front

• Thai anti-gvt group to hold mass rally on March 29(Xinhua) The anti-government group -- United Front of Democracy against Dictatorship's (UDD) will hold another mass rally around the Government House on March 29, UDD core leader Jatuporn Prompan announced Monday.

• Ex-PM, deputy face charges in Thailand A former prime minister of Thailand and his deputy should face criminal charges for last year's deadly dispersal of anti-government protesters blocking parliament, an official commission said yesterday....

• Ex-Thai PM could be charged for protest crackdown A former prime minister of Thailand and his deputy should face criminal charges for last year's deadly dispersal of anti-government protesters blocking Parliament, an official commission said Monday.

• Restricted zone for Thai anti-gov't protestors to be created Thai provincial governors have been directed to create a restricted zone for the anti- government group -- United Front of Democracy against Dictatorship's (UDD) supporters to demonstrate during an official visit to provincial areas by cabinet members, Interior Minister Chaovarat Chanweerakul said on Monday.

• Thai anti-gov't protesters rally amid no-confidence debate Amid the ongoing no-confidence debate, a group of Thai anti-government protesters staged a rally at the Democrat Party's headquarters in Bangkok Thursday afternoon demanding Abhisit Vejjajiva, who is the Party head, to resign as the country's Prime Minister.

467 • Army to root out 'Taksin plan' The army is investigating the so-called Taksin plan, a conspiracy aimed at creating chaos in the country, army chief Anupong Paojinda said on Thursday.

• Puea Thai hopes to dent government's clean image It has been determined that the no-confidence debate will be mounted a week sooner than planned, after the opposition heavyweights agreed to disagree over the targets they deem "censurable".Chalerm Yubamrung: the public will be expecting fireworks.

• Thailand Explores Greater Autonomy for Largely Muslim Provinces A Thai government policy review of the largely Muslim southern provinces is considering granting greater local autonomy with reforms including introduction of Sharia Law through Islamic courts. The strategy is part of efforts to bring to an end a five-year insurgency that has cost more than 3,000 lives. Strategic Front

Economic Front

• A time to reform the economy There is one strong criticism of the Government’s stimulus package – it just did not do enough to put money in the hands of the people and to cushion the impact of those affected and who will be affected by the crisis.

• Thai PM says countries must commit to fiscal boost Thailand's prime minister said on Saturday the world's largest countries must maintain spending commitments and coordinate their fiscal and monetary policies to combat a worsening economic downturn.

Abhisit calls on US, Europe to reject trade protectionism

• Thailand cannot afford to lose export markets The United States and Europe need to make their positions clear on where they stand on trade protectionism, said Prime Minister Abhisit Vejjajiva.

• The US and Europe are the key markets for Thai exports. In a bid to tackle the economic downturn in the country and an export slump, the government has deployed measures to boost local spending, including extra allowances for the elderly and bonuses for civil servants and workers with salaries under 15,000 baht a month. Social Front

• New 'Al-Qaeda' in SE Asia

468 A NEW group calling itself the Al-Qaeda in South-east Asia has tried to mobilise support from the region for jihad in Pattani, where insurgents continue to battle the Thai government in the Muslim-majority south.

• Millions affected by drought across Thailand Drought has affected Thailand's 39 provinces and over 4 million people in 12,517 villages have been suffering from the disaster, a senior official at the Interior Ministry said Monday. Environmental Front • Singapore

Political Front Strategic Front

Economic Front

• Cracks appear in Lee's mantle While a populist backlash against perceived corrupt bankers and financiers mounts in the United States, all is comparatively calm in financial hub Singapore, where the state and finance sector are virtually one and the same.

• Singapore worst-hit in southeast Asia Singapore will be Southeast Asia's weakest economy, shrinking nearly 5 per cent this year, while Thailand faces its worst recession in 11 years, reflecting a collapse in exports across Asia, a Reuters poll shows.

• Singapore, Oman bilateral ties set to grow stronger Singapore's President, S R Nathan, said bilateral ties between Singapore and Oman are set to grow stronger as both countries mark their 25th anniversary of diplomatic ties next year. President Nathan was speaking to Singapore media at the end of his visit to Oman.

• Singapore goes on a million deeds challenge Small acts add up to big leaps and with this in mind Singapore is embarking on a challenge to do a million deeds. Organised as part of the Singapore 2010 Youth Olympic Games movement, the event aims to celebrate the spirit of excellence, friendship and respect.

• Singapore shares close down 1.72% Singapore shares closed 1.72 per cent lower on Tuesday after the government said exports fell by 24 per cent in February, further confirming the bleak economic outlook.

469 The blue-chip Straits Times Index fell 27.29 points to 1,559.03 on a volume of 996 million shares worth S$804 million (US$524 million). Losers led gainers 207 to 173, with 851 stocks unchanged. Social Front

• Number of dengue cases in S'pore down in last few weeks Dengue killed three times more victims in 2008 than in recent years in the Asia Pacific region. With the dengue season set to begin in Singapore in May, health authorities are keeping close tabs on the number of reported cases.

• Three religious landmarks receive first grants from Nat'l Monuments Fund Three religious landmarks are the first to be awarded grants for urgent repair works under the National Monuments Fund.

• Physically disabled volunteers offer e-filing tax service to taxi drivers It is that time of the year again to submit income tax returns. And proving that they too can contribute to society and return a favour, a group of physically disabled volunteers is helping taxi drivers e-file their taxes. Twelve volunteers from the Society for the Physically Disabled (SPD) are providing this service till April 17 to thank those who had helped drive them around. Last year, about 1,100 cabbies sought help from these volunteers. those who want to get help can do so at Tiong Bahru's SPD Ability Centre, No. 2, Peng Nguan Street, Mondays to Fridays, from 11am to 3pm. Environmental Front • Vietnam Political Front Strategic Front

• Vietnam protests Philippine maritime law: report Vietnam protested against a bill signed into law in the Philippines, saying that it lays claim to parts of the disputed Spratly Islands in the South China Sea, state media said Friday.

Economic Front

• Vietnam's Agent Orange Victims Feel Cheated by U.S. Court Vietnamese victims of the notorious Agent Orange have condemned a U.S. court's decision to dismiss their legal action against manufacturers of the highly toxic defoliant used to deprive communist forces of forest cover during the Vietnam War.

• Vietnam growth seen at 0.3%

470 Vietnam recorded 6.2 per cent growth in 2008, the lowest level in almost a decade and a sharp drop from 8.5 per cent in 2007.

• Vietnam's exports would fall in value this year by 31 per cent, he said. Prime Minister Nguyen Tan Dung, who is to address the conference on Tuesday, was quoted last month as saying Vietnam's economic slowdown would end by May. Social Front

• Vietnam bus plunge 'kills 10' At least 10 people were killed when a bus carrying mostly Russian tourists plunged off a cliff in southern Vietnam, state media report. Nine of the dead were Russian, the other was a Vietnamese guide. Most of the victims died at the scene. Fourteen other people were injured in the accident near the highland resort of Da Lat. Vietnam has a poor record on road safety; more than 12,000 people were killed in traffic accidents last year. An initial investigation suggested the bus was speeding down a hill before veering off the cliff late on Friday, police official Nguyen Van Lam was quoted as saying by the Associated Press news agency. There were up to 26 people on board at the time of the accident

• Vietnam foreign investment lower but still strong Vietnam has attracted foreign direct investment pledges of 5.3 billion dollars so far this year, down 30 per cent from the same period last year, a government official said Thursday.

• Analysts say Vietnam must boost infrastructure spending Vietnam is falling dramatically short of the infrastructure spending it needs to sustain high economic growth rates, experts told a gathering of business executives Tuesday. 'If you look at World Bank standards, infrastructure investment should be double GDP growth,' said Andrew Hong, director of corporate finance at PriceWaterhouseCoopers Capital in Malaysia. In Vietnam, 'investment in infrastructure should be about 15 per cent' of the gross domestic product, but instead amounts to less than 10 per cent.

• Vietnam experts calm despite clashing growth estimates International analysts in recent days have presented wildly varying estimates for Vietnam's 2009 GDP growth, but local economists said Wednesday they were not worried. 'The global situation is volatile, and international experts cannot forecast the current situation,' said Tran Dinh Thien, director of the Vietnam Institute of Economics. 'So how can they do that for Vietnam?'

• Vietnam GDP growth to slump to 0.3 percent: UK research firm A migrant worker at a construction site in the suburbs of Ho Chi Minh City on February 25, 2009. Vietnam’s gross domestic product (GDP) growth is expected to be

471 just 0.3 percent this year, down from around 6.2 percent in 2008, according to British research and advisory firm Economist Intelligence Unit.

• IMF downgrades growth forecast for The International Monetary Fund has downgraded its growth forecast for Vietnam to 4.75 per cent this year.It had earlier predicted a 5 per cent increase in real gross domestic product.

• Bird flu kills child in VietnamLast Updated: 9 hours 11 minutes ago A three year old Vietnamese boy has died from bird flu becoming the country's third human victim of the disease this year.A doctor in southern Ho Chi Minh City says the boy was admitted to the city's Tropical Diseases Institute on Monday.He says the child tested positive for the deadly H5N1 strain of the avian influenza virus.The boy's condition deteriorated on Thursday morning and he died in the afternoon.Vietnam has the world's second highest bird flu death toll after Indonesia, with 55 deaths

• Vietnam govt sees up to 400,000 more jobless in '09 - Between 300,000 and 400,000 people will lose their jobs in Vietnam this year, and some 6,000 Vietnamese workers have been sent home from abroad due to the global slowdown, the labour minister said on Friday. Environmental Front • Laos Political Front Strategic Front

Economic Front ¾ Lao-Vietnam trade to reach US$ 1 billion by 2010 Lao government expects the trade between Laos and Vietnam to increase from US$ 423 million in 2008 to US$1 billion by 2010, after the two nations signed a new agreement in Vientiane last week.

¾ Financial turmoil has minimal impact on gold transactions The current global financial turmoil has minimal impact on the trade in gold and silver products in Laos as these two precious metal products are not export oriented. The transactions in gold products are with locals and in fact only a small portion is exported, just two to three per cent, said Chairman of Lao Gem and Jewelry Traders’ Association, Mr Phouvong Phamisith, last Friday.

¾ Russia to help Laos build three hydropower plants

472 Russia will help Laos build three hydropower plants in the south of the country to supply domestic demand and exports.

¾ Govt speeds up establishment of one door service Lao government is accelerating the establishment of one door service aiming at boosting economic growth amid economic turndown. So the government has decided to adjust the gross domestic products to decrease from 8 per cent to 6.9 per cent of GDP this year. Social Front ¾ US gives medical aids to Laos United States of America provided a number of lives saving equipment worth US$6,525 to five hospitals.

¾ Thai People’s Supreme Prosecutors delegation on two–day working visit to Two top officials of the Lao’s Party-State, Mr Thongsing Thammavong, President of National Assembly (NA) and Mr Somsavat Lengsavad, Standing Deputy-Prime Minister, received a courtesy call from a delegation of the Peoples’ Supreme Prosecutors’ of Thailand, led by Mr Chaikasem Nitisiri, President of People’s Supreme Prosecutors of Thailand and Her Royal Highness Princess Bajrakittiyabha, in Vientiane and they were on a two-day working visit to Laos, from 17 to 18 March.

¾ Five youths countries exchange cultures Twenty youths from Thailand, the Republic of Korea, Japan, United States of America and Lao PDR gathered in Vientiane this week to exchange cultures. The activities started from 17 to 19 March, supported by Service for Peace, a non-benefit organization.

¾ Sekong water supply plant construction kicked off The Bank of Lao PDR has released US$ 1.2 million loan to the construction of second water supply plant in Sekong province. The signing ceremony was held last week between the Water Supply Enterprise of Sekong province and a Chinese Construction Company.

¾ Belgium gives four million Euro to health care Improvements were made to the health care systems in two Lao districts, Vangvieng district, Vientiane province and Sepone district, Savannakhet province, because of the four million Euro technical assistance given by Belgium. Environmental Front • Cambodia Political Front

473 Strategic Front

Economic Front Social Front

• Comfrel criticises CPP over Rainsy Election monitor Comfrel criticised the stripping of Sam Rainsy's (right) immunity. ELECTION monitoring NGO Comfrel on Wednesday stated that the stripping of opposition leader Sam Rainsy's parliamentary immunity earlier this year was both controversial and politically motivated.

• Khmer Krom released NINETEEN Khmer Krom refugees were released from detention in Bangkok Monday following an intervention from the United Nations High Commissioner for Refugees (UNHCR). Ang Chanrith, head of the Khmer Kampuchea Krom Human Rights Organization, said the asylum seekers, who held refugee documents from the UNHCR, were released after the UN office petitioned Thai officials to recognise their status as legitimate asylum seekers.

• PM warns of riverbank collapse AS the 2009 wet season approaches, Prime Minister Hun Sen has said that authorities in Kandal province should advise riverside residents to remove their homes in anticipation of the seasonal collapse of riverbanks, prompting the opposition to claim the government is shielding licensed sand-dredging operations which are, it says, exacerbating the problem.

• New construction technology now in Cambodia Canadia Tower is one of the new developments using innovative building techniques to tackle Phnom Penh’s floodwaters. Cambodia may be a developing country, but in terms of land use and construction it has developed remarkably well over the past five years. Environmental Front • Brunei Political Front

• Singapore delegation in Brunei for 14th exchange visit Foreign Affairs Minister George Yeo and a delegation of Singapore ministers and senior civil servants are in Brunei for the 14th Singapore-Brunei Exchange Visit.

474 The visit started with a welcome dinner on Friday for the Singapore delegation hosted by Brunei's Second Minister for Foreign Affairs and Trade Lim Jock Seng. Strategic Front

• Brunei denies it has dropped claim over Sarawak Brunei has denied that it has dropped its claim on Limbang in Sarawak. It says the issue was not even discussed at last Monday's (March 17)deliberations between the two ocuntries.

Economic Front Social Front

• Women's role in progression of Islam HER Majesty Raja Isteri Pengiran Anak Hajah Saleha graced the Special Convention for Women yesterday, held to mark Maulidur Rasul celebrations at the International Convention Centre (ICC).

• Local Islamic bank cause of zakat delay THE delay by local Islamic Bank institution in submitting the zakat to relevant authorities were the main reason for the significantly poor zakat contributions which has prompted the Ministry of Religious Affairs to launch an investigation to the matter, said the Minister of Religious Affairs. Detailed News Monitoring Report • Indonesia Political Front

• Indonesia kicks off election season The Democratic Party supporters marching during an opening ceremony marking the start of the 20-day political campaign in Denpasar, Bali, Indonesia, yesterday.

JAKARTA: Indonesia kicked off its busy election season yesterday for two ballots that will determine the extent Southeast Asia’s biggest economy presses ahead with reforms to attract investment and lift growth.

Hundreds of thousands of people are expected to join colourful, flag-waving rallies in the run-up to a parliamentary election on April 9. That will be followed by a presidential vote on July 8. President Susilo Bambang Yudhoyono — who has partly delivered on promises to create jobs, tackle corruption and maintain security — and his Democrat Party are well ahead of rivals in opinion polls.

475 “During his presidency, Indonesia has enjoyed stability and the economy has not been too bad,” said political analyst Syamsuddin Haris, explaining Yudhoyono’s lead in the polls. Indonesia, where economic growth has topped 6 percent in the last two years, had also avoided major fallout from the global financial crisis so far, added Haris of the Indonesian Institute of Sciences (LIPI).

A Yudhoyono-led government, particularly one in which the Democrat Party wins the biggest share of seats, could help lead to further reforms, with policies focused on growth and job creation. But if he has to again rely on a broad coalition of parties for support, that could hamper his ability to drive reforms, pitting his technocrats against various vested interests.

Street rallies are not officially set to begin until today, but representatives of dozens of political parties gathered in Jakarta yesterday to sign a declaration for a peaceful campaign. The politicians, linking arms on a stage at a Jakarta convention centre, pledged a disciplined and peaceful campaign.

Supporters, dressed in blazers matching party colours and waving flags, stood and sang the national anthem.

Yudhoyono, who founded the Democrat Party, did not attend but leaders from some of the 38 parties taking part were present. “I invite all Indonesians to actively participate in the 2009 election. Let us advance the democratic process well and campaign peacefully,” Yudhoyono said in a separate televised address. The election season is typically a time of mass rallies across the archipelago of more than 17,000 islands, and provides an important economic boost as political parties hand out cash, T-shirts and other goodies to voters. This year, about 170 million voters will pick representatives for national and local parliaments. With so many parties and thousands of candidates, the ballot papers are as big as a broadsheet newspaper. Some analysts are concerned about security, warning that in some resource-rich areas such as Aceh province, which has seen renewed tension between supporters of the military and backers of former rebels, as well as Papua, which has a secessionist movement, there could be outbreaks of violence.

Four members of the Democrat Party were badly hurt at the weekend in Bali after being attacked by a group wielding machetes while on party business, according to media reports. The outcome of the parliamentary election will determine which parties or alliances can field a candidate for the presidential election.

• Indonesian President Yudhoyono's party to seek coalition The Indonesian President Susilo Bambang Yudhoyono's Democratic Party (PD) remains seemingly unworried about a possible coalition between the two largest winning parties, namely Indonesian Democratic Party of Struggle (PDI-P) and the Golkar Party.

476 He said that his party would continue to coalesce with other parties currently backing the current administration of President Yudhoyono. "We hope Golkar is still in the coalition with us," he said, reiterating that PD has no reason for over concerning Megawati-Kalla talks.

On Thursday, PDI-P chairwoman Megawati Soekarnoputri held a rare talk with Vice President and Golkar chairman Jusuf Kalla to explore the possibility of forming a coalition, in an opening salvo aimed at denting Yudhoyono's bid for a second term in office. The meeting came at a time when the latest opinion polls showed the PDI-P and Golkar slipping in popularity against the Democratic Party.

• Last week, former president Megawati Sukarnoputri and Yudhoyono’s vice president, Jusuf Kalla, met amid growing speculation their respective parties, PDI-P and Golkar, may team up against Yudhoyono’s Democrat Party. But the large number of undecided voters makes the outcome hard to predict. New election rules, under which only parties or coalitions that won 20 percent of the votes or 25 percent of the seats can field presidential candidates, could turn minor parties into kingmakers as the main parties seek alliances

• Wish for peaceful Indonesian election THIS week saw the opening of the general elections for our neighbour Indonesia with participants agreeing to hold as its initial stage, the so-called kampanye damai or peaceful campaign rallies. The expression probably sounds strange to our ears, though very telling because Indonesia, with its population of more than 240 million people, has a history of election-related violence and disputes.

After more than 30 years of Soeharto's New Order regime when general elections were not much more than rigidly choreographed affairs where voters were told to vote for the late presidents party Golkar, these days Indonesians are treated to a vast array of political parties vying for sympathy. Under Soeharto's New Order, Indonesians had three political parties (one was United Development Party/PPP which was described as Islamic, another was Indonesian Democratic Party or PDI which was described as nationalist) but all voters knew they were expected (if not intimidated) to vote for Golkar. Non-voting or abstention was not a choice; the act (or non-act, as the case might be) was at one time twisted by Golkars so-called ulama and described as a "sin" but apathy used to be enough of a reason for Indonesians to take that risk. Nowadays, non-voting has become a regular part of the discourse for Indonesians; for some it is a necessity to save them from the confusion because of the presence of so many new political parties, new issues being promoted and new election regulations being introduced; for others, abstention remains an expression of apathy because they believe things have not changed that much politically and economically since the 1998 reformasi.Take, for instance, the Indonesian women voters; in the previous general election they were given a promise that they would

477 have at least a 30 per cent representation in the legislative bodies. The promise was not kept. This year again they were promised the same thing, but the result of the balloting of 9 April would determine how well this promise would be upheld now.Another example is the question of the establishment of Islamic values and laws in the predominantly- Muslim countries. An increasing number of Muslim voters have wished to see political parties promote Syariah, but this hope has been dashed when even the more prominent so-called Islamic parties declared they would not seek to implement it and instead formed alliances with "secular" parties in response to various pressures. Poverty of the masses, "money politics", tensions created by frictions and encounters in campaign rallies manipulated by scrupulous, power-hungry parties had in the past led to bloody conflicts among voters in Indonesia.

We certainly would not wish to see the same situation again this year in Indonesia. It is in the interest of our country as well as that of other countries in the region that elections in Indonesia proceed peacefully and safely, and a new and better stage in its nations life begins. Any missteps toward reaching that stage will impact on Indonesia's neighbours including Brunei Darussalam.

It is also in the interest of the region that one of its biggest members will do well in whatever decision-making mechanism it chooses so that its new administration will have the support of the Indonesians to begin work improving the welfare of its people.

No less important for the new Indonesian government would be to contribute better to the neighbourhood, such as through Asean, of which Indonesia is one of the founding members. There are so many issues to be dealt with by Asean nations, from poverty to environmental degradation to human rights abuses. The fact that Indonesia and the other Asean nations have ratified their own pact, the Asean Charter, highlights even further that they are duty-bound to resolve the issues.In the face of such challenges, it is natural to hope that each nation will first put its own house in order before assuming the responsibility of tackling neighbourhood problems. Hence, our wish for a safe and peaceful election in Indonesia.

• Yudhoyono well placed in Indonesian polls Formal campaigning opened on Monday in Indonesia for elections to national, provincial and local legislatures in which 171m largely Muslim voters are expected to clear the way for the re-election of Susilo Bambang Yudhoyono as president.

Mr Yudhoyono is not a candidate in the April 9 legislative election, but candidates for the July 8 direct presidential election must be backed by parties that win 20 per cent of the 560 seats in parliament, or 25 per cent of the popular vote in what is the world’s third largest democracy

EDITOR’S CHOICE

478 Indonesia poll’s family ties - Aug-01Bribery conviction raises pressure on Jakarta - Jul- 30Tactical change to draw Indonesia voters - Jul-13Suharto’s son faces $440m corruption lawsuit - May-05Indonesia bank governor held in graft probe - Apr-10Civil suit against Suharto family dismissed - Mar-27After eight months of initial canvassing restricted largely to the media, Mr Yudhoyono’s Democrat party, with more than 20 per cent support, is leading the Indonesian Democratic Party of Struggle, led by Megawati Sukarnoputri, Mr Yudhoyono’s predecessor, which is registering support in the mid- teens.A percentage point or so behind is Golkar, the political machine of the former dictator Suharto and the largest party in parliament. Islamic-oriented parties, which won more than a third of the vote at the last election in 2004, are now polling about half that level.The wildcard is the new Great Indonesia Movement party led by Prabowo Subianto, a former Suharto son-in-law whose military career was cut short in 1998 after his involvement in the kidnapping of some two dozen activists, 13 of whom disappeared.

Up to a dozen parties are expected to pass the 2.5 per cent popular vote threshold required to win parliamentary seats.Some 20 per cent of voters remain undecided, but analysts believe that a sizeable proportion of these will back the Democrat party because Mr Yudhoyono’s popularity and record are likely to decide the campaign in the absence of a meaningful policy debate. According to Roy Morgan International, a market research company, he is one of only three democratically elected leaders whose job approval rating exceeds 60 per cent – the others being Barack Obama of the US and Australia’s Kevin Rudd.

In presidential election surveys Mr Yudhoyono, a taciturn former general known as SBY, is polling in the mid-40s and rising. He is at least 20 percentage points ahead of Mrs Megawati, with all other potential candidates in single digits.Speculation is mounting that if the Democrat party does very well, securing more than 25 per cent of the parliamentary seats, Mr Yudhoyono could create enough momentum to win a majority in the first round of the presidential election in July and so avoid a September run-off between the top two candidates, which was required at the last election.

Mr Yudhoyono has announced a Rp71,300bn ($5.9bn, €4.6bn, £4.2bn) package of tax cuts and infrastructure projects due to be rolled out later this month.

Indonesia’s three elections since the fall of Suharto in 1998 have been largely free and fair and observers are confident this one will be no different.The only big change in the proportional representation multi-member constituency system that Indonesia uses is that voters will this time be allowed to select individual candidates, rather than simply nominating a party. This innovation is intended to remove from the parties the power to decide which candidates end up sitting in parliament.

• Indonesian parties call for peaceful campaign

479 In Indonesia political parties have begun their campaigns for the upcoming general elections. Local and parliamentary elections will be held in April, followed by presidential elections in July. Representatives of the 38 political parties fielding candidates met in Jakarta to sign a declaration calling for a peaceful campaign. The traditional mass political rallies will begin on Tuesday.

Opinion polls put incumbent President Susilo Bambang Yudhoyono and his Democratic Party in the lead. The Democratic Party of Struggle of former president Megawati Sukarnoputri and the Golkar Party of Vice President Jusuf Kalla are considering joining forces against President Yudhoyono.Hundreds of thousands of police have been deployed to keep the peace during the mass rallies in the lead up to the election

• More than 11,000 candidates contesting for parliamentary seats in Indonesia: Monday marks the start of open campaigning for Indonesia's parliamentary elections. Mass rallies will be held across the country ahead of the polls on April 9. All 44 political parties contesting in the elections have pledged to hold peaceful campaigns, including the six local parties which are fighting for seats in Aceh - a provision of the peace deal struck between Aceh rebels and the government in 2005. Polls so far have predicted that the two biggest winners in the last election - Golkar and PDI-P - will still dominate this year's proceeding, but by a smaller margin.

Golkar is led by Vice President Jusuf Kalla and PDI-P is headed by former president Megawati Sukarnoputri. Hadar N. Gumay, Executive Director of the Centre for Electoral Reform, said: "There will be new parties in the fray. Big established parties will see their votes decreased. One or two middle-sized parties may see their share of votes increased."

President Susilo Bambang Yudhoyono's Democrat Party is expected to win big, even though it took just 6 per cent of the votes in 2004.

A party or coalition of parties will only be eligible to nominate a presidential candidate if they get 20 per cent of the seats in parliament or 25 per cent of the votes.

There are 560 seats up for grabs in the national parliament, excluding seats in each of the 33 provincial parliaments. More than 11,000 candidates are contesting - up from around 7,000 in the last election.

And for the first time, winners are determined by popular votes, unlike previous polls when parties decide who will take the winning seats. Hadar N. Gumay said: "This will make our parliament consist of not only party leaders, there will be personalities, academics and celebrities. This will change the future of our parliament.

Observers also warned that money politics might become more rampant as the competition gets stiffer. Surveys revealed that out of the country's 170 million voters, more than 60 per cent said they are still undecided. Observers said the more

480 knowledgeable voters will pay attention to political debates on television before making their choices on April 9.

• UPDATE 2-INDONESIA ELECTION EYE-Megawati to talk with PPP The following is a snapshot of recent developments in Indonesia's election campaign.

Southeast Asia's biggest democracy holds parliamentary elections on April 9. The polls will also determine which parties can field candidates for presidential elections on July 8.

The sources of reports are in brackets.

MEGAWATI'S PDI-P AND PPP TO DISCUSS CLOSER CO-OPERATION

Megawati Sukarnoputri's Indonesian Democratic Party of Struggle (PDI-P) and the chairman of United Development Party (PPP) will meet on Thursday to discuss closer co- operation in the wake of the parliamentary elections, Pramono Anung, PDI-P's secretary general told reporters on Wednesday.

The talks with PPP, an Islamic party, in Jakarta could pave the way for joint campaigning in the elections, similar to the agreement between PDI-P and Golkar Party.

BANDUNG RALLY AGAINST "NO VOTE" CAMPAIGN

About a hundred people rallied against the "No Vote" campaign and against bad politicians in West Java's capital, Bandung. (Elshinta radio)

YUDHOYONO'S PARTY AND PAN MET FOR TALKS President Susilo Bambang Yudhoyono's Democrat Party held a meeting with the National Mandate Party (PAN) aiming to "strengthen a sense of understanding" between the two parties to pave a way towards an alliance, Democrat Party deputy chairman Anas Urbaningrum said. The party had also met officials at the National Awakening Party (PKB) on Monday. (Jakarta Post)

KALLA PROMISES TO IMPROVE WELFARE

Vice President Jusuf Kalla promised to improve social welfare and the livelihood of all struggling people at his debut campaign rally for the Golkar party in Medan, North Sumatra.

GUS DUR BACKTRACKS ON SUPPORT FOR GERINDRA

Former president Abdurrahman Wahid denied he had asked his supporters to back the Gerindra Party of Prabowo Subianto in legislative elections, although he said he was committed to supporting the former general in the presidential elections (Jakarta Post)

ELECTIONS TO GIVE A LIFT TO AIR TRAVEL

481 The parliamentary election campaign is expected to give a boost to air travel with the number of passengers increasing 10 percent from the same period a year ago, an official at Garuda Indonesia said.

SPENDING ON FOOD, DRINKS TO RISE 10-12 PCT ON POLLS

The elections are expected to help boost the food and beverage sector, with producers targeting a rise in spending of 10-12 percent this year, the chairman of the Indonesian Food and Beverage Association, Thomas Darmawan, said. (Jakarta Post)

• Indonesia: Political Islam under threat, analysts say – Once considered an imminent danger by some, political Islam in Indonesia, the world's largest Muslim country, is now under threat analysts say, as Islamic parties may find themselves impaled by their own expectations ahead of the country's legislative elections scheduled for 9 April. Studies by the Centre for Strategic & International Studies and the Indonesia Survey Institute suggest a dry harvest for the nine competing Islamic parties, with optimistic projections at 23 percent, or worse dropping to 15 percent of votes.

There is a waning interest in political piety unseen since the final year of former Indonesian president Soeharto’s repression of the 1997 election.

“Either [religious] fanaticism is declining or voters are more rational,” National Awakening (PKB) party chairman Muhaimin Iskandar replied when asked by Indonesian daily The Jakarta Post about the falling popularity of Islamic parties.Grand speeches are unlikely to save the United Development Party (PPP), the Prosperous Justice Party (PKS) or the National Mandate Party (PAN) from sliding to 5 percent or less, as haughty divisions halve the PKB's 10.5 percent returns from the previous election.

The giddy heights of Indonesia’s first election in 1955 are a fading memory of Islamic parties surging toward 43 percent of votes.When former president Soeharto “simplified” the party system, the amalgamation of Islamic parties under the PPP still received 29 percent of votes in the 1977 election. That marked the highest turnout ever for a single Islamic party.The first democratic election in four decades saw political Islam return in force by winning 34 percent of total votes in 1999.However, the absolute numbers told a more nuanced story, said the studies.Only by combining the 24.5 million votes of the two biggest Islamic parties of 2004, the PKB and the PPP, could it be comparable to second placed Golkar’s 23.3 million votes, and far behind election winner the Indonesian Democratic Party Struggle (PDI-P)’s 35.4 million.Five years later, Islamic parties again raised their tally to 38 percent.

But the spectacular rise of the PKS in 2004 — jumping from 2 percent under the Justice Party in 1999 to 7.3 percent — concealed the diffusion of support for Islamic parties.

482 Apart from the PKS, the support base for Islamic parties became thinner.The PKB, the PPP and the PAN saw their collective votes drop by 3.4 million, in a deficit caused by the PKS’s rise, the emergence of new Islamic parties such as the Reform Star Party (PBR) and an appealing nationalist option in Indonesian president Susilo Bambang Yudhoyono’s Democratic Party.

Despite the fear of a religiously conservative Indonesia over the past 10 years, these developing trends lend credence to the view that Muslims across the archipelago are too syncretic and moderate to opt for right-wing politics, the studies revealed.The rise of political Islam in 1999 and 2004 served as a surrogate for political dispossession rather than the birth of fundamentalism.

Although the country has the largest number of Muslims in the world, Indonesia has substantial Christian, Buddhist and Hindu minorities. The country's constitution recognises five religions and allows all its citizens to run for public office. At the same time of the six presidents that have been elected since independence , all were Muslims and all the candidates running in the forthcoming elections are Muslim. Indonesia has a population of 235 million people and 90 percent of them are Muslim. Most practise a moderate form of the faith.

• US gives a long overdue nod to Indonesia Hillary Clinton deserves credit for making Indonesia the second country she visited as secretary of state. Indonesia may be the world's fourth most populous country, third largest democracy, and home to the world's largest community of Muslims, but it is also the most important country Americans know virtually nothing about. Clinton's visit sends an early signal to Jakarta that Washington recognizes Indonesia's growing international clout and builds a firm foundation for future cooperation.

Clinton's trip had multiple goals: to highlight the example Indonesia's transition to democracy sets for the broader Muslim world; to reinforce US interest in Southeast Asia by visiting the

Secretariat of the Association of Southeast Asian Nations (ASEAN) and to lay the foundation for a strategic partnership with Indonesia. Indonesian officials welcomed US attention to their country and recognition of its achievements over the past decade.

Much of the commentary on Clinton's visit has focused on the example that Indonesia sets as a political democracy in a majority Muslim nation. Clinton praised Indonesia's political transformation for illustrating that "Islam, democracy and modernity cannot only coexist but thrive together." Such statements ignore Indonesia's religious pluralism. Yes, Indonesia is home to the world's largest community of Muslims. Eighty-eight percent of its 245 million people profess the Islamic faith, which means that Islam has more adherents in Indonesia than in all Arab states combined. But it is not an Islamic state.

483 Indonesia recognizes Islam, Catholicism, Protestantism, Hinduism, Buddhism, and Confucianism as official religions. Most Americans are surprised to learn that Christmas and Good Friday are national holidays in Indonesia.

Clinton noted that Indonesia could help the Barack Obama administration by serving as a bridge to the Muslim world. Many Indonesians believe that their experience with economic development, political reform, and Islamic terrorism gives it the authority to speak to the challenges facing the Islamic community such as poverty, oppression, and "Islamophobia". In a speech in Saudi Arabia, Indonesian President Susilo Bambang Yudhoyono stressed that Islam was once not only a religion of peace, but also one of progress. He argued that Muslims should respond to current challenges by embracing technology, modernity, and a culture of excellence. US interests are clearly served when the leader of the world's largest Muslim country makes such statements. Indonesia, however, has never played a large role in the broader Islamic world, and many Arabs view Indonesians as second-class Muslims. Whether Indonesia can influence its Islamic brethren remains to be seen.

Divergent stances toward Middle East peace also complicate Indonesia's ability to serve as a bridge to the Muslim world. The US supported Israel's 2006 war against Lebanon and its recent invasion of Gaza; Indonesia loudly condemned both. In Jakarta, Clinton acknowledged Indonesian anger over the actions in Gaza. She stated that the Barack Obama administration favored a two-state solution to the crises and would work hard to resolve what she termed a painful and difficult issue. Many Indonesians have high hopes that the Obama administration will move away from what they viewed as the Bush administration's knee-jerk support of Israel and adopt a more even-handed approach. This may reduce tensions between Washington and Jakarta, but it will remain a thorn in the relationship until some comprehensive solution is reached.

Indonesia has also taken steps to promote democracy abroad. It insisted that a commitment to democracy and human rights be included in the new ASEAN charter. Jakarta has pressured the Myanmar junta, albeit unsuccessfully, to reform politically. In December 2008, Indonesia launched the Bali Democracy Forum, which will bring together over 30 Asian countries for annual meetings to share experience and work out best practices on political reform.

While a boon to US interests, democracy promotion Indonesian style differs greatly from its US counterpart. Most Americans have never lived under anything but a democratic system, so democracy promotion is often an ideological crusade by people who lack an appreciation of the difficulties involved in building viable democratic regimes. Indonesians, in contrast, lived through decades of authoritarianism before embarking on a transition to democracy in 1998. Indonesia's efforts to promote democracy, therefore, are based not only on ideology, but also on a pragmatic appreciation of the benefits. Many

484 Indonesian diplomats claim that what gives their democracy promotion efforts credibility is their ability to tell others, "if we can do it with all of our problems, you can do it too".

Clinton's trip to Indonesia also underscores the Obama administration's intention to pay more attention to Southeast Asia. In Jakarta, Clinton visited the ASEAN Secretariat - the first by a US Secretary of State. Her announcement that the US would begin the process of signing ASEAN's Treaty of Amity and Cooperation, the organization's regional code of conduct, was widely welcomed in Asia. Ratification of the treaty, however, must be approved by the US Senate, and it is far from clear whether that support will be forthcoming.

The US and Indonesia both signaled a desire to forge a "comprehensive partnership" that would expand and deepen all aspects of the bilateral relationship and create a framework to advance common interests, such as environmental protection, climate change, trade and investment, democracy, health, education, counter-terrorism, and regional security issues. Precisely how this might evolve is unclear. Despite strong Indonesian opposition to the Bush administration's military invasions of Iraq and Afghanistan, relations improved dramatically during Bush's second term. Washington lifted the military embargo against Indonesia, extended US$157 million of educational aid, rescinded its travel ban, and supported the Aceh Peace Process. Officials on both sides agree that US- Indonesian relations are the best they have been in decades.

In a December 2008 speech in Washington, President Yudhoyono called for a "strategic partnership" with the US, but Indonesian officials have backed away from this term in favor of "comprehensive partnership". Indonesians remember with gratitude US relief efforts in the wake of the devastating 2004 tsunami. US restrictions on military-to- military relations and on sales of equipment in earlier years, however, have created a perception among Indonesian defense officials that the US is unreliable and made them wary of over-dependence on the US as a supplier of military equipment. Moreover, Indonesians are staunchly nationalist, guard their national sovereignty jealously and would never permit foreign military bases on Indonesian soil. These factors place limits on future security cooperation.

Environmental concerns, particularly climate change, are issues that both sides see as a basis for strategic cooperation. Indonesia is an archipelagic state that has lost a number of its 17,000 islands to climate change and is one of the world's largest emitters of greenhouse gases due to deforestation. But there are significant domestic obstacles in both countries to environmental cooperation. For Indonesia, grappling effectively with deforestation will entail cracking down on illegal logging and plantation building, both of which are backed by powerful interests. The Obama administration will likely face significant hurdles attempting to secure congressional support for his environmental

485 initiatives. In the absence of significant domestic support, it is difficult to envision how the US and Indonesia can embark on ambitious cooperation on environmental issues.

Obama is widely popular in Indonesia, and his inauguration has created a new opening for US-Indonesian relations. This is not only because he lived in Indonesia as child, but also because of what his election signals about the US. An America willing to elect a man whose father was a Muslim immigrant from Africa and who had an Indonesian stepfather is a country tolerant of diversity and one that lives up to the ideals of equal opportunity it espouses abroad. It is a country that Indonesians can identify with.

Clinton was wise to seize the opportunity Obama's election created to enhance relations with Indonesia, despite the obstacles already discussed. What makes Indonesia a unique international actor is its membership in a number of important global communities: it resides physically in Asia but is part of the broader Muslim world, the developing world, and the community of democracies. Its ability to navigate between these important constituencies in the service of international peace and prosperity makes Indonesia a potentially valuable international player. American attention to Indonesia is long overdue.

• Indonesian electoral lists in dispute before polls(Reuters) A dispute over a local election in one of Indonesia’s key provinces has raised fears about the validity of the country’s electoral lists just three weeks before Indonesians vote in national and local elections.The parliamentary elections on April 9, followed by the key presidential election on July 8, will determine the extent to which Southeast Asia’s biggest economy presses ahead with reforms to attract investment and drive economic growth, and are seen as a test of Indonesia’s commitment to democracy.

President Susilo Bambang Yudhoyono, a reformist ex-general who was directly elected in 2004, and his Democrat Party are well ahead of rivals in the opinion polls.Allegations that the electoral register in East Java province contains fictitious names have led to concerns that the problem could be more widespread, potentially affecting the legitimacy of elections. The dispute could also hurt the Democrat Party if investigations show that fraud has occurred.Syamsul Bahri, a commissioner from the General Election Commission, told Metro TV that names found to be fictitious would be deleted from the electoral rolls.

Yudhoyono’s main rival, also told Metro TV. “We from PDI-P want the election commission to really pay attention to this.” When no clear winner emerged in the election last year for the post of governor of East Java province, one of the most populous provinces in the country, it went to a second round.

Soekarwo and Saifullah Yusuf, the governor and deputy jointly fielded by the Democrat Party, National Mandate Party (PAN) and Prosperous Justice Party (PKS), were declared the winners after the second round by a narrow margin. But the losing candidates

486 challenged the results, alleging fraud.Khofifah Indar Parawansa and Mudjiono, who lost, were backed by Megawati’s PDI-P, together with the Golkar Party and several other small parties.

The head of the Democrat Party, Anas Urbaningrum, was quoted in local media as saying he believed the lists were correct, but more oversight was needed in the field.

Herman Sumawiredja, the former head of East Java police, told Reuters on Thursday that his team had found many thousands of fake names on the electoral registers when two of the province’s districts were ordered to hold a third vote in January 2009.

Sumawiredja said he was moved from his job in East Java in February before his investigation was completed and before he was due to retire.He said his investigation had found that 345,000 names out of 1.2 million on the computerised version of the electoral register for the two districts were false. When his team cross-checked this with a sample of the printed lists of names, they found that 29,000 names in the sample were false

• Clinton in Indonesia: What She Missed She came to Indonesia as the new Secretary of State, and she came, she said, as a friend. Hilary Clinton met Indonesian President Susilo Bambang Yudhoyono and later told the press that she "wanted Jakarta's advice and counsel about how to reach out not only to the Muslim world but to Asia and beyond." This overture from Barack Obama's administration signaled the direction U.S. policy will take toward the fourth most populous nation on Earth.

Indonesia was an obvious stop on Clinton's four-country tour of Asia. Less clear were Clinton's comments. Clinton "praised the democratization process in Indonesia, which is a model for Islam." But then she added: "As I travel around the world over the next years, I will be saying to people: If you want to know whether Islam, democracy, modernity and women's rights can coexist, go to Indonesia."

That is, of course, exactly what the Indonesian political establishment, religious leaders, and the great majority of Indonesian people wanted to hear. But it couldn't be further from the truth.In her remarks in Indonesia, Clinton made no mention of genocide in Papua. She neglected to speak of how political and militant Islam is openly defying the constitution of Indonesia and taking control of several parts of the country. And she was silent about how the business and political elite treats the impoverished, uneducated, and unrepresented majority of the people.

Religious Intolerance

In direct contrast to Clinton's words, Indonesia and its largest religion have become increasingly intolerant. As Clinton praised moderate Islam, less than a one-hour drive from the center of Jakarta, at an ASEAN scout jamboree site in the Cibubur suburb,

487 hundreds of girls are still living in makeshift conditions more than six months after a brutal attack against their SETIA Evangelical School of Theology in East Jakarta. The attackers cried "Jihad, Allahu Akbar, attack, kill them, burn them," and the crowd that gathered shouted similar slogans. During and after the attack, the police did practically nothing. More than 20 students suffered injuries, some from machetes. Instead of protecting the children and their right to stay on the campus, the authorities evacuated them to avoid confrontation with the Islamists.

In June 2008, members of the Islamic Defenders Front (FPI) attacked secularists commemorating Sukarno's relatively tolerant Pancasila state ideology at the national monument in the very center of Jakarta, which resulted in at least 70 people injured. More than 1,000 police officers stood by and watched the violence. The radical Islamist FPI, wearing long white robes not unlike those of the KKK, regularly attack bars, cafes and pork-selling establishments and other haram establishments. It almost always gets away with its actions, with the state either indirectly supporting the actions or not daring to intervene.

Ahmadiyah is one of the oldest Muslim sects in Indonesia, with 500,000 members and over 80 years of history. Yet it has suffered from countless attacks, their houses of worship burned down. The fundamentalist mainstream has pressured the Indonesian government to ban Ahmadiyah from preaching in public.

In August 2007, more than 70,000 members from around the Muslim world descended on Jakarta to call for a caliphate — or Islamic rule — in Southeast Asia. The government authorities allowed them to use biggest stadium in Central Jakarta, despite the fact that the group is banned in most of the countries in the Middle East.

The government's recent Electronic Information and Transactions Law bans pornographic websites. But it also bans the spread of "false news" and "racial and religious hate messages." The government could very well interpret these phrases to include any news or comment not approved by the establishment, as well as criticism of the religion. In December 2008, the government ratified the law and thereby criminalized any sex-related materials deemed to violate public morality, including traditional and modern music and dances, as well as dresses worn by women in different parts of archipelago.

Finally, several parts of Indonesia, most notably West Java and North Sumatra, are now controlled by Sharia law, which imposes religious justice and dictates the dress code for women. The current administration has done nothing to stop this trend.

Political Intolerance

Political killings and gross human rights violations take place regularly throughout the Indonesian archipelago. However, the international press has only covered the most

488 extreme cases, such as the murder of human rights and anti-corruption activist Munir Said Thalib in 2004, onboard a Garuda Indonesia Airlines flight bound for Amsterdam via Singapore, allegedly by a Garuda pilot and an Indonesian intelligence officer.

In December 2008, for instance, police officers and hired guns for the Arara Abadi Corporation attacked a peasant community in Riau province to gain control of the land, arresting 200 peasants, destroying 700 houses, and forcing 400 people to hide in the forest.

This year, once again, Fadjroel Rachman tried to run as an independent presidential candidate. The Constitutional Court rejected his candidacy, upholding the rule that a presidential candidate must be from a party or coalition of parties that won at least 20% of the votes. This rule effectively disqualifies anyone not deeply rooted in the regime.

Rachman is critical of the current government's pornography law and its intolerant approach to religion. "The fight for democracy and democratic Islam has deep roots in Indonesian society, but it has nothing to do with the present administration," he says, zeroing in on a specific piece of legislation the government has failed to back. "Right now Susilo Bambang Yudhoyono isn't willing to even issue a government decree introducing affirmative action for women in parliament, a plan that would set aside 30% seats in the Parliament for women. The hard work of all those who fought for this affirmative action goes to waste."

Economic Intolerance

The gap between the rich and the poor is greater in Indonesia than almost anywhere else. Jakarta is a city of luxury hotels and malls, with children playing in open sewers nearby. By the international poverty living standard of $2 dollars a day, more than half the population of Indonesia is poor.

In 2006, a mining accident left more than 50,000 people homeless in Porong. Lapindo Brantas, the company responsible, is owned by the family of welfare minister Aburizal Bakrie. Last year, Forbes listed Bakrie as Indonesia's richest man with a total fortune of about $9 billion. Bakrie retained his job and refused, until very recently, to pay any compensation to the victims. "The victims not only lost land, schools, houses, and other buildings," says Lubis. "They lost a collective identity - the place they belonged to for a very long time. The fact that Bumi (one of the Bakrie's close associates) bought three oil companies after the disaster should show the government that they do have money, just that they don't want to spend it on compensating the victims."

Ethnic Intolerance

489 Indonesia has occupied West Papua in much the same way that it occupied East Timor. "An estimated 100,000 Papuans, or 10% of the population, have been killed by the Indonesian military. This is a fraction of the true figure, according to refugees," wrote journalist John Pilger. He quoted a refugee who made it to Australia after a harrowing trip by canoe: "They treat West Papuans like animals. They kill us like animals. They have created militias and jihadis to do just that. It is the same as East Timor."

The United States, like other countries, has economic interests in West Papua, and so have looked the other way at Indonesia's conduct there. These oil and mining interests supply the Indonesian government and U.S. with companies billions of dollars annually. Meanwhile, the economic conditions in West Papua are appalling, with health indicators considerably below the Indonesian average.

A new nonviolent movement is taking shape in West Papua, largely replacing an armed struggle that failed to achieve its objectives or international support.

U.S. Policy

The United States and Australia helped plan the 1965 coup that sidelined progressive leader Sukarno and brought in the military clique of General Suharto. Around 2 million people died — communists, union leaders, teachers, artists, and members of the Chinese minority. The United States also supported Indonesia's invasion of East Timor in December 1975, which resulted in one-third of the population either killed or starved to death.

Indonesia is once again important for the United States. There are still plenty of raw materials in Papua and elsewhere, as well as untapped oil resources. There is, of course, China, which the United States tries to isolate militarily. And there is Indonesia's connection to the Muslim world. "Indonesia has a larger Muslim population than any other country," says Nursyahbani Katjasungkana. "The United States thinks that Indonesia can control or at least influence Muslim population all over the world – under the U.S. leadership, of course!"

Obama lived in Indonesia as a child, shortly after the 1965 coup. He was known as "Barry from Menteng," after the neighborhood where he lived. His step-father was an Indonesian army officer. If Obama wasn't aware of this history as he grew up, he certainly should know it by now.

To break with the shameful past the United States played in this part of the world, the Obama administration should finally tell the truth, instead of showering the Indonesian establishment with sweet bouquets of clichés. He should speak the truth about what happened in 1965, about East Timor, about Papua and the role that big business played

490 and still plays in this unfortunate country. It's his obligation, both as "Barry from Menteng" and as the president of the United States.

• Free Papua founder to hold 'peace talk' with govt One of the founders and leading figures of the Free Papua Movement (OPM), Nicolas Jouwe, is visiting Indonesia for a meeting with Coordinating Minister for People's Welfare Aburizal Bakrie on Friday to help ending more than 40 years of hostility between the country and the separatist group.

"He had refused to meet with Indonesian officials for dozens of years... But, finally, he is willing to come to Indonesia. He even said he wanted to be President Susilo Bambang Yudhoyono's adviser for Papua matters," Indonesian Ambassador to the Netherlands J.E. "Fany" Habibie said in a press conference here Thursday. According to Fany, Nicolas changed his stance after their meeting in the Netherlands, in which they were engaged in light and serious talks, and even shared jokes and exchanged quatrains in Ambonese.

The ambassador added, however, this seemingly significant step toward peace was still fragile, and warned that the Indonesian government should handle the matter very carefully.Fany held his meeting with Nicolas in late February, following the sending of an Indonesian delegation to lobby the separatist leader. The President, he said, instructed the delegation sending because of military operations’ failures to oppress the separatist movement. Strategic Front

• Separatists attack Indonesia's Papua, killing one solider The Liberation Army of separatist Free Papua Movement (OPM) had launched attacks on security posts in Tingginambut area, Puncak Jaya district, Papua province in Indonesia, since Friday and killed an Indonesian Army soldier on Saturday, the Antara news agency reported.

The news agency quoted local police chief Cris Rihulay as saying that the security officers were now trying to take the victim to Mulia city, district capital of Puncak Jaya.

Meanwhile, Puncak Jaya district head Lukas Enembe said that besides launching attacks on security posts, the OPM also destroyed and set fire on the Gurage bridge which linked the area with the rest parts of Puncak Jaya.

He said that he had instructed local authorities to put a curfew into effect in an effort to prevent undesired happening following rumors that several members of the OPM's armed wing had entered Mulia city.

• Letters: Singapore-Indonesia defense talks

491 I refer to your article Singapore-Indonesia Defense Talks at Stalemate (The Jakarta Post online, March 11, 2009) in which Minister Juwono Sudarsono was reported to have said that Singapore had "ceased" further discussions on the Defense Cooperation Agreement (DCA)

This is misleading. There has been no progress on the DCA because Indonesia insisted on substantive changes to the implementing Arrangements (IAs) for the DCA despite having earlier agreed to the IAs. Singapore stands ready to proceed with the agreed and signed package of the DCA and Extradition Treaty (ET) when Indonesia is prepared to do so.

• Dive the Nusa Tenggara islands, Indonesia In sight of the tourist hotspot of Bali lies a chain of islands that will dazzle the most jaded travellerMy first experience of the bounties of the rather obscure Nusa Tenggara came about ten years ago when I dragged myself away from the world-famous waves of Bali and travelled to the lesser-known island of Lombok. Ditching the surfboard, I headed to Indonesia's third-highest peak, Mount Rinjani, an active volcano located about three hours' drive from the island's capital, Mataram.

On offer was a fairly rigorous, three-day/two-night guided trek, leaving from the village of Senaru, gateway to the huge Mount Rinjani National Park. A 3am start on the second morning brought me tired and elated to the summit for a dramatic sunrise. It was at this point,

3,762 metres (12,340ft) above the newly lit Indian Ocean, with the whole Nusa Tenggara stretched and dotted below me as far as the eye could see, that I had the first inkling of what this part of the world could offer.

Following that revelation, there was a two-hour descent to Segara Anak, the crater lake of Mount Rinjani. At 2,500 metres above sea level, the breathtakingly beautiful lake is is an important ceremonial site, utilised for various rituals by both the local Wetu Telu Islamic people and by nearby Hindu communities

And all this within reach - heck, within sight - of Bali, a favourite tourist paradise since the early 1970s. Nusa Tengarra refers to an area containing the 550 or so islands that lie to the east of Bali, stretching from the lush, mountainous Lombok all the way to the desert-like Timor. Smack bang in the middle and bisecting the island chain is what is known as the Wallace Line, named after Alfred Russel Wallace, the 19th century naturalist. His studies in this area in the 1850s led him to devise a dividing line that marked the transition between the flora and fauna of western and eastern Indonesia. We could go into the huge significance of this imaginary evolutionary halfway line, but for the visitor it is sufficient to know that this huge range of unique flora and fauna is what makes Nusa Tenggara such a fascinating place to visit.

492 Elsewhere in Lombok, in the far south, Kuta's great waves, stunning bays and hotels attract a steady stream of visitors, many coming for the annual ritual of the Bau Nyale, held on the second full moon of the year. And if you cannot celebrate a sea worm's annual reproduction cycle, what can you celebrate? For more standard tourist fare, the coral reefs, white sandy beaches and beach bars of the Gili Islands, just off Lombok's northwest coast, offer a variety of accommodation and excellent diving.

Moving east from Lombok, Nusa Tenggara is dominated by its largest island of Sumbawa. This is drier than Lombok and its southern coastal flank, with dramatic cliffs and wild oceans, and is a favourite for thrill-seeking surfers. Sumbawa's biggest tourist attractions, however, lie with its offshore islands on the northern, more sheltered side.

Perhaps the most well known of these is Komodo, made famous by its Komodo dragons. While not known to breathe fire, the dragons are in fact giant monitor lizards that can grew up to four metres long. These reptilian throwbacks are considered to be the only examples of their kind left in the world and have been gorging on Komodo's rare bird species, deer and wild pigs, not to mention each other, for half a million years.

The whole island is a designated national park and offers only rudimentary accommodation, meaning most visitors are day trippers from nearby Sumbawa or Flores. While you will often see the dragons close to the accommodation huts (mostly dozing under a tree if my experience is anything to go by), a guided tour to see them in the wild is the key to a) seeing their primitive table manners and b) not getting devoured by an animal who can date his family tree back to the Triassic age.

From Komodo it is a short boat trip to Flores, an untouched, volcano-strewn island that straddles the Wallace Line and provides one of the world's most dynamic marine environments, in addition to being a famous “biodiversity hotspot”.

With infrastructure pretty crude on most of the island, the best bet is to stay in the town of Maumere. Using this as a base, you can take advantage of the great diving and snorkelling nearby. (It was in Maumere harbour that the marine photographer Rudie Kuiter catalogued more than 1,200 species of fish, including some new to science, in 2005.) In addition there are the picturesque, coloured, cratered lakes of Keli Mutu, about half a day's drive away.

Crossing Wallace's marker and into East Nusa Tenggara, the island of Sumba does not offer much for anyone except the most intrepid of explorers or those willing to make a little effort to see an authentic, ancient culture with none of the layers of Hinduism or Islam found elsewhere in Indonesia.

Sumba, which was once known as Sandalwood Island after its most valuable commodity, can be reached by sea, including ferries from nearby islands, and air (the only airport is

493 situated at Waingapu on the northeast of the island). Among its offerings there is access to mind-boggling fishing and diving, some world-class surf breaks, and a glimpse into the past through tours of ancient tribal villages. In fact, this place may just sum up the experience of travelling through Nusa Tenggara. It is a unique mix of natural beauty and incredible culture which, for the most part, is untouched by the ravages of tourism. I've been there many times and only scratched the surface, but as old Wallace discovered, this is a unique part of the world that demands close inspection.

• Located between the Flores and Savu Seas, in East Nusa Tenggara, Alor island sits in the Pantar Strait, a world-class destination for deep-sea diving. Unlike many other parts of Indonesia, the Pantar Strait has avoided the ravages of cyanide and blast fishing. Instead the locals still practise traditional fishing methods, so the unique and incredibly diverse species of fish and coral remain both virgin and accessible.

Perhaps the best-known site is “Kal's Dream”, an underwater mountain named after Kal Muller, a famous Hungarian-born ethnologist who studied the tribes in West Papua, Indonesia. Muller was an experienced diver who called the area his dream site. The marine life here includes two-metre long dogtooth tuna, eagle rays, silvertip sharks, grey reef sharks, barracudas and Napoleon wrasse.

While this site may be for expert divers, beginner sites exist that offer perfectly vertical coral walls dropping to 50 or 60 metres with more than 30 metres of visibility (most common during the best months of May till November) and the area is an ideal place for snorkelling.

• A small island with many faces For a small island (87 miles across and 50 miles wide), Bali encompasses an amazing diversity of terrain. And a great many of its communities display distinct personalities, so seeing one definitely does not mean you have seen them all.

SOUTH

Some travelers never venture beyond the beaches lining Bukit Peninsula, the Bali resort capital. In Jimbaran, sedate, widely spaced resorts face west. At the beachside restaurant strip, patrons crowd in to view the bright-orange sunsets. That's about the only part of the Jimbaran shoreline where traffic noise out-shouts the roaring surf.

Slightly inland from the beach, the town of Jimbaran--still a fishing village at heart-- bustles with an early morning market. Cows roam free, having learned to avoid the motorbikes, taxis and trucks on the main road to Kuta.

Kuta attracts the surfing crowd and the surfing, beach-blanket lifestyle. Funky hotels outnumber the luxurious kind. Away from the beach (always alive with hawkers of

494 souvenirs and roving masseuses), Kuta will appeal to those who love a scruffy, tacky and energetic scene where the designer labels cannot be believed.

Sanur and Nusa Dua resemble high-end Hawaiian resort areas. Hotels sit discreetly in manicured compounds lined with coconut palms. They bristle with Balinese temple-style architecture. Unlike Maui, however, waves roll in from Badung Strait without much zest, due to outlying coral reefs. It's pricey. A morning at the golf course costs more than $200, including rental clubs, caddie and tips.

CENTRAL

Denpasar, the capital, is also in the south, but it's on the way north and worth a stop for the culturally rich collection of artifacts at the Museum Negeri Propinsi. It's also good for a dose of big-city life, Asian style, complete with shop houses, noise and motorcycles.

The capital of the "real Bali" (or at least the one we had fondly imagined) would be the town of Ubud, a showcase for Balinese artistry of every kind. Roads flare out from the magnificent central palace, and most are lined with shops, markets and galleries. Even the humblest restaurants and hostels will show off something exquisite: a flowered courtyard, a family temple, a treasured carving of the Rice Goddess, or a statue of a spirit with a fresh hibiscus on its ear.

The "vacant lots" of Ubud are rice paddies, brilliant green and a preview of rice paddies on a grander scale in the fields outside town.

NORTH

Up toward the central mountains, (the northernmost point of Bali as far as the majority of visitors are concerned), roads climb through terraced rice fields that spread out like concentric puddles of green on the foothills of Mts. Batur and Batu Kau. Picturesque temples with pagoda towers enhance the mountain lakes.

EAST

One intriguing village after another, each with its own artistic specialty and unique character, lead to Klungkung and its Court of Justice. That complex, comprises a beautiful collection of highly decorated buildings (including a museum) set off by a lily pond and statuary. To the north, the slopes of Mt. Agung hold the most sacred of all Balinese temples, Besakih.

WEST

While the far west is mostly protected wilderness, the part that slopes gently westward north of Kuta shouldn't be ignored. A must stop between exploring still more villages and admiring the green, terraced countryside is the temple of Tanah Lot. Its pagoda tower and

495 other buildings thrust out to meet the Indian Ocean in spectacular fashion. At sunset the temple can be seen at its most dramatic--hence the crowds. But even on a rainy afternoon, it speaks of beauty and mystery as it stands silhouetted in the mist.

Economic Front

• Obama discusses economic crisis with Indonesia's presidentLast US president Barack Obama has discussed the global economic crisis with Indonesian president Susilo Bambang Yudhoyono.

The US administration says that in a wide-ranging telephone conversation, Mr Obama spoke of the need for close cooperation in confronting the economic crisis.

The two leaders also agreed to advance the partnership with a focus on issues, including education, health care, climate change and counterterrorism.

They also discussed regional and international issues, including Mr Obama's commitment to a new and different kind of relationship with Islamic communities.

The U.S. president also discussed the economic crisis and the upcoming Group of 20 summit of developed and developing nations in phone calls with King Abdullah of Saudi Arabia and President Gloria Arroyo of the Philippines Social Front Environmental Front

• Strong quake between Philippines, Indonesia A strong 6.0-magnitude earthquake struck in the ocean between the Philippines and Indonesia Monday, geologists said, but there were no immediate reports of injuries or damage.

The U.S. Geological Survey said the epicentre was about 296 kilometres south-southeast of General Santos in the Philippines.The quake, which struck at 10:15 p.m., was around 35 kilometres below sea level.It was followed around 10 minutes later by an aftershock with a magnitude of 5.0.No tsunami warning was immediately issued • Malaysia Political Front

• BN Election: Better to visit at night, says Khairy The three Umno Youth chief aspirants want fewer visits by ministers and their deputies to the three constituencies having by-elections.

496 Deputy Umno Youth chief Khairy Jamaluddin said the Barisan Nasional election machinery could be disrupted by welcoming functions. Sharing his views were his rivals for the top Youth post, Datuk Mukhriz Mahathir and Datuk Seri Dr Mohd Khir Toyo. Khairy said it would be better if the VIP guests only went at night as party workers would be busy canvassing for support during the day.Dr Khir said the ministers could help to campaign from house to house at night.Mukhriz, who was also at the meet-the-delegates gathering here, said the BN parties should start working on the by-elections now instead of waiting for the Umno elections to be over.

Meanwhile, Gerakan Youth has rated BN as the underdog in Bukit Selambau and Bukit Gantang by-elections.Its chief, Lim Si Pin, said the change in government in Perak would be the key issue, not the economic downturn.He added that the BN component parties must work hand-in-hand to get the support of voters.

• PM will contribute to Islam even upon retirement Prime Minister Datuk Seri Abdullah Ahmad will continue advocating the progress of Islam and the ummah even upon his retirement. The degree was conferred on him by Sultan Ahmad Shah of Pahang.

One of the contributions he had made while in office was to re-emphasise the centrality of Islam in the lives of believers through Islam Hadhari.Abdullah also emphasised on the need to promote tolerance between civilisations

He called on Muslims not to allow irresponsible talk about an impeding clash between civilisations to become a "self-fulfilling prophecy"."The challenge that faces us is to let moderate voices from the west and the Islamic world prevail in a meaningful dialogue that will serve the needs of all." He said this was not a time to bemoan the injustices of the past, to point the finger at anyone or to apportion blame among any religion

Earlier, Sultan Ahmad Shah, in conferring the degree on Abdullah, said the recognition given to the prime minister was due to him promoting good governance in societies and goodwill between people and cultures internationally.

Abdullah has clamped down on corruption, giving more power to the Malaysian Anti- Corruption Commission and make it easier for the public to reveal corrupt practices.

Present at the convocation at the university were Sultanah Kalsom of Pahang, Higher Education Minister Datuk Seri Mohamed Khaled Nordin and university president Tan Sri Mohd Sidek Hassan.

• Malaysia is roiled by a crisis of democracy A slew of political scandals gripping Malaysia and a transfer of power fraught with uncertainty have embroiled the elite here with exquisitely poor timing.

497 As a major trading nation, Malaysia is being slammed by the global downturn, its exports collapsing by nearly one-third and current projections showing that its economy will shrink by as much as 5 percent this year.Yet the main preoccupation of the government and opposition parties appears to be what analysts are describing as an increasingly dysfunctional political system: The man who is in line to become prime minister is linked to the murder of a Mongolian woman whose body was obliterated with military-grade explosives. The opposition leader awaits trial on sodomy charges in a highly politicized case. The government is using draconian laws, including those against sedition, to prosecute opposition figures, and this week it banned a member of Parliament for one year after he called the prime-minister-in-waiting a murderer.

Meanwhile, the Legislature of one of the largest states in the federation has been paralyzed for six weeks over a dispute over who should govern

• Malacca CM will attend assembly Embattled Umno vice-president Datuk Seri Mohd Ali Rustam will attend the party's general assembly next week. Ali said, however, he has stopped campaigning following the disciplinary board's decision to bar him from contesting the deputy presidency.

The Malacca chief minister yesterday attended the Umno management committee meeting chaired by deputy president Datuk Seri Najib Razak at the latter's office in Parliament's tower block.

Ali arrived at 12.30pm and left at 1.45pm.Ali refused to divulge any details.Ali said he had also not met Prime Minister Datuk Seri Ab-dullah Ahmad Badawi over his case.

• Khir: Umno Youth can be people's voice Umno Youth should become the voice of the people if Barisan Nasional wants to regain the confidence of the people.

Umno Youth chief aspirant Datuk Seri Dr Mohamad Khir Toyo said for the movement to remain relevant, it should no longer be the mouthpiece of the government.

Dr Khir, 43, is facing two contenders in the race for the Umno Youth chief post -- current Youth deputy chief Khairy Jamaluddin, 33, and Youth executive committee member Datuk Mukhriz Mahathir, 44.Dr Khir said he would carry out a political education programme and strengthen BN Youth if elected to office.Dr Khir, who is also an Umno supreme council member, said Umno Youth should pressure the government to make changes in the administration and economic policies to ensure fairness to all races

• EDITORIAL: Cleaning up Umno THE expressions of displeasure, charges of selective prosecution and insinuations of hatchet jobs over the disciplinary board's decisions on Tuesday show how complex and combustible the task of lancing the boil of endemic vote-buying in Umno is going to be.

498 To suggest the possibility that some of the principal actors in the drama have been sacrificed on the altar of political expediency may be seen as casting aspersions on the board's motives. Nevertheless, there is little point in pretending that this thought has not crossed people's minds. However, since the board seems to have grounds to believe that their "agents" have acted improperly, its decisions must be supported. Given that unethical practices involve the tacit, if not explicit, support of a cast of others, if there is to be blame, then it should certainly be shared. Moreover, if Umno wants to be seen as a clean party, as its future president says it must, it is in the best interests of the party as a whole that the highest standards of probity be seen to apply.

The first steps on the road to redemption are always the steepest, and there is the risk that all that dirt and filth from the clean-up could sink the party's standing even lower in the public eye. There is also the double jeopardy of the personal cost to those who have been tainted and the risk of deepening the party's internal fissures. But these are risks that have to be taken, because the bigger risk for the party is rejection by the people, as Datuk Seri Najib Razak has observed. It is in light of this honest and realistic assessment that his appeal to make sacrifices and to clean up the party must be noted. It is no longer a matter of restoring personal honour but of rebuilding public trust in the party. It may not be something that those who believe in their own innocence, and those who have doubts that those who have been investigated and punished have done anything wrong, may want to hear. Nevertheless, it is something that they need to hear, lest they have forgotten that all power ultimately come from the people, not just from party delegates.

Umno has no choice but to make the strategic decision to take strong and decisive remedial action on its own. Otherwise, the hope of rebuilding its credibility will be forlorn. Failure to match the rhetorical promises with appropriate action would only invite the public to prescribe even more bitter pills at the next polls. Strategic Front

Economic Front

• Global meltdown hurt performance, says EPF The Employees Provident Fund (EPF) has declared a dividend of 4.5 per cent for 2008, its lowest since 2003, and warned members not to expect more than that for this year.

The EPF's dividend was 5.8 per cent for 2007, 5.15 per cent in 2006, five per cent in 2005, 4.75 per cent in 2004 and 4.50 per cent in 2003.

"Up until September last year, the EPF was doing well in equities. However, with the global financial meltdown, our performance in equity investments recorded a drop of less than 20 per cent, which impacted our dividend pay-out. "This, however, compares better with that of the Kuala Lumpur Composite Index, which was down approximately 40 per

499 cent from the end of December 2007 to December 2008," EPF chairman Tan Sri Samsudin Osman said in a statement.

Net income for the year was RM14.26 billion, after deducting allowances for the diminution in value of equities and doubtful debts, dividends for withdrawals, investment expenses, operational expenses, and death and incapacitation benefit payments. This represented a decrease of 15.47 per cent over 2007's net income of RM16.87 billion. EPF made allowances of RM4.69 billion for the diminution in value of both overseas and local equities, compared to only RM520 million in 2007. Of the 2008 provision, RM3.20 billion was allocated for overseas equities.

As at Dec 31 2008, the EPF's total investment funds had grown by RM28.99 billion to RM342 billion compared to RM313.01 billion a year ago. The three main contributors to EPF's record gross income of RM20 billion in 2008 were loans and bonds (RM6.78 billion), equities (RM6.67 billion), and Malaysian Government Securities (RM4.94 billion). Dividends will be credited to members' accounts on March 23.

• Malaysian firm joins Microsoft to release e-payment solution A Malaysian financial software firm has released an e-payment solution for local SMEs using Microsoft Excel that will reduce business costs.

“MaxPaygate is a state-of-the-art e-payment product that links to Microsoft Excel (MXL), and aims to improve efficiency and reduce the cost of doing business for SMEs (small medium enterprises) throughout the country,” said Abdul Mushir Che Chik, MSC (Multimedia Supercorridor) status company T-Melmax chief executive officer.

“MXL, targetted at SMEs, is a plug-in which runs on Microsoft Excel 2007 that enables companies to easily make payments for their staff salary, statutory payments and supplier payments to the bank via the Internet,” said Tyson Dowd, Microsoft Malaysia senor director, local software economy.

T-Melmax is an online payment gateway services provider, offering bulk payment and collection solutions to SMEs and corporates. Established in 2002, it is an award-winning ICT company registered with the ministry of finance and an active MSC status company.

Open standards and SME needs

“The software, made possible through the interoperability elements of the ISO standard known as Office Open XML, is available to SMEs without upfront licensing costs and customers will only be charged based on usage,” said Dowd. “Originally developed by Microsoft, the Office Open XML format is a standard for word-processing documents, presentations and spreadsheets that is intended to be implemented by multiple applications on multiple platforms.”

500 T-Melmax’s Mushir said the company’s market surveys indicated that a large portion of SMEs have not adopted ICT due to costs and lack of IT expertise. “Most SMEs we talk to are familiar with Microsoft Windows and Excel, thus developing our e-payment solution on this industry-standard platform makes a lot of business sense to our customers. There’s no re-learning needed,” he said. “Our partnership with Microsoft to introduce innovative technologies such as MXL will strengthen our brand and we hope to be listed on Bursa Malaysia in one year.”

Made possible by local funding

This solution was developed by T-Melmax, an investee company of venture capital firm Malaysia Venture Capital Management (MAVCAP). “We must be consistent with the changing environment. Staying abreast with change and competition means streamlining processes to become more efficient. E-payments can vastly improve productivity and reduce the cost of doing business,” said MAVCAP chief executive officer, Husni Salleh. “These benefits become even more apparent during these challenging economic times, and we believe T-Melmax and this pioneering solution will be of great assistance to SMEs,” he added.

• -Malaysia's IOI sees palm oil at 2,000 rgt/ Malaysia's IOI Corp , the world's third-largest listed palm oil producer, said the price of crude palm oil could rise 20 percent due to falling domestic stockpiles.

"We see prices trading within a range of 2,000 ringgit to 2,300 ringgit, averaging about 2,000 ringgit a tonne. This should be the fair value of palm oil for the time being," said IOI Group Executive Chairman Lee Shin Cheng, without providing a timeframe for the forecast.Lee's view on palm oil are closely followed by traders and industry analysts

Malaysia's crude palm oil inventories fell 15 percent to a 16-month low in February, a bigger than expected drop, as production of the vegetable oil declined faster than the drop in exports, industry data showed last week. Malaysia is the world's second largest palm producer in the world after Indonesia.

The benchmark palm oil futures contract on the Malaysian derivatives exchange is currently hovering slightly above 1,900 ringgit a tonne.

CPO prices have gained nearly 13 percent this year as stocks in Indonesia and Malaysia dropped to an average of 4 million tonnes from a record 5 million in December on good Asian demand.But industry analysts last week predicted that palm oil prices will suffer from selling pressure in the second half of 2009 due to weaker commodity markets, slowing demand and an uptick in output. For a factbox on the forecasts, click on

501 IOI's Lee is maintaining his relatively bullish view, which he has held since the fourth quarter last year, even as the global economic outlook has significantly worsened over the past few months

• Investors Optimistic Of Global Economy But Hesitating Investors want to believe in an economic recovery but the prolonged financial crisis and caution on banks seems to be stopping them from putting cash into equities, according to Meryll Lynch Survey of Fund Managers for March.

Michael Hartnett, Banc of America Securities-Meryll Lynch co head of international investment strategy, said how the investors resolve the anomaly between growth optimism and risk reluctance would determine the fate of equity markets this spring.

In a statement issued in New York and London, the survey said that for the first time in more than three years, investors do not predict lower global economic growth over the next 12 months, with renewed optimism about China's economy at the heart of it.It said that just two months ago, a net 70 percent of respondents thought China's economy would worsen in the year ahead, but it fell to a net one percent this month.

However, risk appetite has dropped with investor pessimism towards banks at a record high, with respondents noticeably bearish about Japanses and eurozone equities.

A net 48 percent of asset allocators said they were underweight banks this month, up from a net 39 percent in February while 22 percent said they were aggresively underweight banks versus 17 percent in the same period.

Meanwhile, a net 40 percent of respondents were now underweight eurozone equities and a net 39 percent were underweight Japanese equities.Hartnett noted that optimism on growth has been expressed with higher weightings in emerging markets equities and commodities.

• China uses vouchers to spur consumer spending For an oil-rich country with a gleaming, cosmopolitan capital and a large, well-educated middle class, the pessimism may seem hyperbolic. But analysts say the current political woes strike at the heart of the functioning of government, damaging core institutions like the royalty, the judiciary, the police and the news media.

Much of the anxiety in Malaysia is focused on the rise of Najib Razak, a veteran politician in line to become prime minister sometime after the governing party’s annual general assembly next week. No date has been set, and some Malaysians speculate that the current prime minister, Abdullah Badawi, will hold onto power, although he has said repeatedly that he would step down.

502 Mr. Najib’s supporters say he will reverse the sagging fortunes of the governing party, the United Malays National Organization, and offer decisive leadership, a contrast to the languid style of Mr. Abdullah, who is from the same party. But Mr. Najib lacks popular support, and many expect further crackdowns on his opponents if he becomes prime minister.Both Mr. Najib and his spokesman, Tengku Sariffuddin Tengku Ahmad, declined to comment for this article.

In a speech on Wednesday, Mr. Zaid, the former law minister, called on Malaysia’s king to reject Mr. Najib if the party puts him forward as prime minister and to appoint someone who would ‘‘bring us back from the brink.’’

The most high-profile scandal to tarnish Mr. Najib’s reputation is the murder of the Mongolian woman, Altantuya Shaariibuu, the mistress of Mr. Najib’s foreign policy adviser. Her life and death, a mix of soap opera and horror movie, have captivated and shocked the public.Prosecutors say Ms. Shaariibuu was killed in October 2006 by government commandos who also serve as bodyguards to the country’s top leaders.

Mr. Najib has not been charged with any crime, but lawyers say the handling of the case has been irregular and criticize the prosecution for failing to call Mr. Najib to testify.

When she was murdered, Ms. Shaariibuu was reportedly seeking her share of a commission — the opposition calls it a bribe — worth €115 million, or $155 million, paid by a French company as part of the government’s deal to buy submarines. Mr. Najib, who is defense minister as well as deputy prime minister, handled the submarine purchase.

The huge size of the commission — about 10 percent of the total cost of the submarines — is not being investigated despite an official acknowledgement by the Malaysian government that it was made to a company linked to Mr. Najib’s aide, who was acquitted in connection with Ms. Shaariibuu’s murder.

Perhaps more worrying for the country is the standoff in Perak, a state where since early February the police have barred lawmakers who oppose the governing party from entering government buildings.

Mr. Najib spearheaded an effort to install a new chief minister in Perak by claiming that he had enough defectors from the opposition coalition, the Pakatan Rakyat, which last year took control of the State Assembly for the first time since independence from Britain in 1957.

• Japan's Honda sees rising sales in Malaysia in 2009 despite economic gloom Japanese carmaker Honda said Thursday it was confident of increasing sales in Malaysia this year, one of the rare regional markets to buck the downtrend amid the global economic gloom.

503 Japanese carmaker Honda said Thursday it was confident of increasing sales in Malaysia this year, one of the rare regional markets to buck the downtrend amid the global economic gloom.

Honda Malaysia President Azman Idris said the company hopes to sell 35,000 cars this year in Southeast Asia's largest passenger car market, up about 8 percent from 32,477 units in 2008.Despite a sharp drop in overall sales in the domestic market in January, Honda managed to increase Malaysian sales to capture a 10 percent market share — more than its 7 percent market share for 2008, he said.

Unlike Honda factories globally which had cut production, output at its Malaysian factory has been ramped up as demand for its four main models — the City, Civic, Accord and the CRV — remained robust, he said.

The mid-sized sedan City remains its best-selling model, accounting for half of its sales.The Malaysian Automotive Association forecast domestic sales to drop 12.4 percent to 480,000 units this year from 548,115 units last year.But Azman said Honda is more conservative and estimated total industry sales at only 400,00 units as the Malaysian economy faces its first possible recession in a decade.Honda is the second best selling foreign brand in Malaysia, trailing rival Toyota.Honda's biggest production hub in Southeast Asia is in Thailand, which makes a wider range of cars for exports largely to the region and Australia. But production there has been cut by half to 120,000 units last year and will remain at the same level this year, officials said.

• Malaysia Aims To Be Among Top 10 Trading Nations Malaysia aims to be among the world's top 10 trading nations by 2020, International Trade and Industry Minister Tan Sri Muhyiddin Yassin said Thursday.

"This is our new target at the ministry. Now we are in the 19th position, and we are working towards rising to be in the top 10," he told Bernama after an interview with Radio 24.Muhyiddin said though it appeared to be a high target for Malaysia, it was not impractical and the country was capable of achieving the target.

In an effort to achieve the aim, the ministry has made plans such as developing the domestic investment sector and diversifying value-adding activities, he said.He said the ministry was also in discussions with trade and industry associations to draw up an effective strategy to achieve the objective.To maintain foreign direct investment, the ministry planned to offer customised incentives to foreign investors for a two-year period to attract their interest during the current economic downturn.

Muhyiddin said, adding that the incentives included tax, extension of pioneer status, permanent resident status for managers and chief executive officers, competitive land prices and provision of required infrastructure."The government will have to bear the cost

504 and looking from the returns aspect, we spend RM1 billion to get possibly RM30 billion in investment

• Economic crisis brings attractive property deals VISITORS to the Penang International Property Expo 2009 (PIP09) can look forward to attractive deals from developers in view of the tough competition caused by the property market meltdown.Developers will be geared to explore winning strategies and opportunities at the expo, said event director Ong Ban Seang.

About 70 projects will be featured by 46 exhibitors at the expo, he added.The three-day expo, scheduled from March 27, will be held from 11am to 9pm at the Penang International Sports Arena (PISA).Ong said the expo, in its fourth year, would also see the launch of the inaugural PIP Property Network Evening which would be attended by the who’s who in the property scene and trade professionals such as architects, engineers, surveyors, planners and invited lawyers, bankers and the business community.

A series of talks and forums including a feng shui talk entitled ‘Creating Opportunities in Difficult Times’ and forums on Malaysia My Second Home (MM2H) and ‘Implications of George Town World Heritage Listing on the Real Estate Market’ will be held during the expo.Ong also said that between 60 to 70 property lots were expected to go under the hammer.In conjunction with the expo, a PIP Property Treasure Hunt will be held on March 21 where participants in 50 cars will scout for treasures at selected project sites and offices of the participating exhibitors.

The flag-off will be at 10am at the Aquatic Centre in PISA and forms are available at the Penevents office at PISA.The expo is organised by PIP Creation Sdn Bhd with the co- operation of Penevents, Raine & Horne and supported by the State Housing Committee. Social Front

• Action against Bar for using 'Allah' The Selangor Islamic Religious Council (MAIS) has decided to take legal action against the Malaysian Bar Council for using the word "Allah" in a poll published in its website. MAIS chairman Datuk Mohamad Adzib Mohd Isa said in a statement that the publication of the word had affected the sensitivities of Muslims.He said the use of the word "Allah" was sub judice as the the matter was still a subject of legal proceedings.MAIS also banned the song Allah Peduli by Indonesian singer Agnes Monica, said Adzib.

• Food technology research center inaugurated in Hanoi A research and training center for food technology worth US$1.9 million built with official development assistance (ODA) from Italy was inaugurated at the Hanoi University of Technology Monday.

505 The center is equipped with state-of-the-art production lines of milk, cheese, fruits and vegetables and will help students keep up with the latest automatic technologies in the food industry.It will also serve research in the field by providing tests and technology demonstrations. Environmental Front • Philippine

Political Front

• Obama Calls Arroyo, Talks To Her About VFA TV on Saturday evening reported under the headline “Obama finally calls Arroyo” that “US President Barack Obama finally called her up Friday morning [US time, Friday evening Manila time] and voiced support for the RP-US Visiting Forces Agreement [VFA].”

It was the US Office of the Press Secretary that publicized Obama’s call to the Mrs. Arroyo and the two leaders’ reaffirmation of their commitment to the long-standing US- Philippine alliance. “The President called President Arroyo of the Philippines this morning. They reaffirmed their commitment to the long-standing US-Philippines alliance, including the Visiting Forces Agreement, which remains critical to the bilateral relationship and our strategic interests,” GMANews.TV quoted the US press secretary’s office as saying. Mr. Obama apparently also com-mended Mrs. Arroyo, GMANews said, “on Philip-pine efforts in countering terro-rism and modernizing the Armed Forces of the Philippines.” Groups critical of the United States have been calling for the Philippine government to move for the abrogation of the VFA following the conviction of Lance Corporal Daniel Smith in 2006 for the rape of a Filipino woman in Subic in 2005. Those calls became sharper last month when the Supreme Court ordered Smith placed under Philippine custody, while still upholding the validity of the VFA.

The US press secretary’s office also said “the two leaders discussed the need to “work closely together on the global economic crisis as well as on other areas of common concern, including climate change, education and inter-faith dialogue.

• Manila open to changes in Mindanao law The Philippines is open to amending a law creating a Muslim autonomous region on a restive southern island officials said yesterday, after two days of talks with a group of former separatist guerrillas.

Manila also won pledges from members of the Organisation of Islamic Conference (OIC) to pour more development assistance into Muslim areas affected by 40 years of conflict

506 that has killed 120,000 people, said Nabil Tan, the government’s deputy peace adviser. Tan said the government and the Moro National Liberation Front (MNLF) would work together to draft a new law.

In 1996, the Philippine government and the MNLF signed a peace deal, brokered by the Organisation of the Islamic Conference and Indonesia, to end a separatist rebellion that has displaced 2 million in the south. The larger Moro Islamic Liberation Front (MILF), also a rebel group, however did not accept the agreement and continued the struggle for an independent Mulsim homeland in the southern Philippines. In 1978, a group of Islamic fundamentalist rebels split from the more secular MNLF. They did not agree with the autonomy deal between Manila and the MNLF, brokered by Libya. Six years later, the MILF was formally organised in Muslim rebels on mainland Mindanao, drawing more support from Muslims not happy with the MNLF’s political deal with the government. Last year, the government agreed to expand the ancestral homeland for Muslims in the south after talks with the MILF, but negotiations were suspended when violence escalated in six southern provinces.

Tan said the joint legal panel with the MNLF will have until the end of April to propose amendments. He said the OIC was also eager to get a copy of the proposed legislation ahead of its annual ministerial meeting in Damascus late in May and could serve as a basis for asking Islamic states to contribute to a “peace and development fund”. Strategic Front

• Vietnam protests Philippine maritime law: report Vietnam protested against a bill signed into law in the Philippines, saying that it lays claim to parts of the disputed Spratly Islands in the South China Sea, state media said Friday."Vietnam protests against the act and calls on the Philippines to refrain from undertaking similar actions so as not to affect peace and stability in the region and the growing ties between the two countries", foreign affairs spokesman Le Dung was quoted as saying in Vietnam News daily.

Earlier this week, President Gloria Arroyo signed into law a controversial bill defining the Philippines' maritime boundaries, a move already denounced by China.

Arroyo's chief aide, Executive Secretary Eduardo Ermita, said the "baselines law" did not openly claim the Spratly islands, but added the Philippines' claim to the area was already covered by existing laws and did not have to be covered by the new legal document.

The Spratlys sit astride important sea lanes and may contain significant oil and gas deposits. The islands are claimed in whole or in part by the Philippines, China, Brunei, Malaysia, Taiwan and Vietnam.On Friday, Vietnam also protested against an authorisation given by China to a tourism firm to begin tours to an island in the Paracel,

507 another disputed archipelago in the area over which China and Vietnam claim sovereignty. Economic Front

• Philippine bourse seen rising Philippine share prices should gain next week, led by Philippine Long Distance Telephone, analysts said Friday. For the week to March 13, the composite index lost 64.06 points or 3.3 percent to 1,856.10. Average daily volume rose to 1.3 billion shares but value fell to 1.8 billion pesos ($36.8 million) compared to 854.6 million shares worth 1.935 billion pesos the previous week.

• Most corrupt govt agencies in Pulse poll issue reactions It’s “unfortunate” that its efforts are being “overshadowed by the controversies arising from recent issues,” the Department of Public Works and Highways (DPWH) said in a statement after being named as the “most corrupt” Philippine agency by the Pulse Asia 2009 Survey.

The statement released Wednesday said the department views the Pulse Asia Survey as an “indicator of public perception on the work we have done to address the issue of anomalies and systemic weaknesses in the public bidding and procurement processes.”

According to the DPWH, it would continue its effort in expanding “infrastructure networks” through partnerships with various institutions such as the World Bank, AusAid and Bantay Lansangan.

It also enumerated in its statement the various measures being undertaken by the department to combat corruption that includes the adoption of post-qualification procedures to ensure the participation of more bidders in each projects, full participation of its non-sectoral partners, presence of additional observers and the use of independent audit and evaluation technologies to guarantee transparency in each bidding process.

Meanwhile, the leadership of the Philippine National Police (PNP), ranked second most corrupt government agency in the survey, focused on the positive finding that the image of the police has been improving.

National police spokesman Chief Supt. Nicanor Bartolome said that the PNP Integrated Transformation Program has been slowly rebuilding the values of policemen, which showed in the surveys.

In 2006, the national police was viewed as “very bad” in terms of corruption, but in 2007 the national police slightly improved with its rating going to “bad,” Bartolome said, adding that the national police was rated as “poor” the following year.

508 In its February 2 to 15 surveys with 1,200 respondents, Pulse Asia said that 32 percent of Filipinos view the DPWH as the most corrupt government agency followed by PNP with 21 percent. The Department of Agriculture, Bureau of Internal Revenue, Department of Education and the Bureau of Customs were also perceived as corrupt by 15 percent to 19 percent of the respondents. On the other hand, on the list of the least corrupt government agency, DepEd is followed in closely by the Department of Health with 13 percent, followed in by the Department of Social Welfare and Development which was viewed by 11 percent of the respondents as least corrupt

• Slow growth of earnings alarms ADB The Asian Development Bank (ADB) said the sluggish growth in earnings of Filipino workers over the last decade is “alarming,” particularly because the figures did not expand faster than the economic growth rate.

In a report titled, “Quality of Jobs in the Philippines: Comparing self-employment with wage employment,” the Manila-based lender said the growth of wages in the Philippines has been “remarkably lackluster.” “Despite average gross domestic product [GDP] growth of 4 percent between 1994 and 2006, real wages have grown on average by only 1.12 percent,” the ADB said. GDP is the total cost of all goods and services produced in the country in a year. Because of the sluggish growth, most Filipino workers are opting to be self-employed rather than salaried workers.

Data from the National Statistics Office showed that there were about 10.5 million informal sector operators last year. Informal sector operators are either self-employed people who do not have any paid employee or an employer in a family-owned and operated farm or business. The number of self-employed Filipinos is about 9.1 million, while the small employers are about 1.3 million.

The ADB said wages of permanent workers grew by only 1.2 percent; for casual workers, 1 percent; wages of those with a college education, 0.94 percent; those less educated, 0.27 percent; and those with just primary education, 0.46 percent.

Entrepreneurial activity

But poor Filipino households’ reliance on entrepreneurial activity also went down from 1994 to 2006. The bank reported the share of wage earnings in household income has increased by an average of 3 percentage points for those belonging to the bottom half of the distribution of household per capita income. And household income from entrepreneurial activities declined by an average of nearly 6 percentage points.

Joblessness in the Philippines has risen to 7.7 percent with more than nine million people—about one in 10—out of work or underemployed, the government said Tuesday, blaming the global downturn. The unemployment rate rose from 7.4 percent a year

509 earlier, with another 180,000 people without jobs pushing the total to 2.855 million, the National Statistics Office reported Social Front

• Three more kidnapped in Mindanao The spate of kidnappings in Mindanao remains unabated. Three more teachers in Naga, Zamboanga-Sibugay were abducted by a group of armed men. The victims were identified as Noemi Mandi, Jocelyn Enriquez, and Jocelyn Inion.

• Philippines hostage crisis enters third month(AFP) Three Red Cross workers abducted by Muslim militants enter their third month in captivity in the southern Philippines on Sunday with no sign of progress in negotiations.

Swiss national Andreas Notter, 38, Italian Eugenio Vagni, 62, and Filipina Mary Jean Lacaba, 37, were snatched by an Al Qaeda-linked group on the restive island of Jolo on January 15 while on a humanitarian mission.The military says it knows where they are being held and has cordoned off the area of rugged jungle terrain on Jolo.

But it has ruled out complying with the kidnappers’ demand that it withdraw troops from the island, and is reluctant to use force for fear of harming the hostages.After almost three weeks of silence, the hostages called the local Red Cross office on March 11 to say they were alive and had not been separated, as had been feared.Initially, the hostages were allowed to call people on their mobile telephones and a government envoy delivered medicines to them, but such contacts ceased last month.The kidnappers belong to the Abu Sayyaf, a group of Islamic militants known to have received financing from the Al-Qaeda terror network.The group has been kidnapping Westerners and Christians since the 1990s, only letting them go in return for ransom.

It has said it is fighting for a separate Muslim state in the southern Philippines, but officials say its members have become mere bandits.The government has imposed a news blackout on the search for the hostages, making it virtually impossible to get accurate information.Regional governor Abdusakur Tan said in a television interview that only informal talks are being held with the kidnappers, and negotiations have not been smooth.

There are conflicting reports on whether the kidnappers are demanding a ransom.Tan said a man claiming to be Abu Sayyaf commander Al-Bader Parad called him to demand 50 million pesos (1.03 million dollars), but Parad has denied this.

Both the ICRC and the government have refused to pay any money, saying this would only encourage more kidnappings.Military spokesman Brigadier General Gaudencio Pangilinan has said he still hopes to use non-violent means to free the captives, but that “the military option is there.”The government has also brought in former Muslim

510 separatist rebel leader Nur Misuari to bargain with the kidnappers.But so far, he has reported little progress.

• Kidnappings worry OIC A senior official of the Organisation of the Islamic Conference (OIC)yesterday expressed concern over an upsurge of kidnappings in the southern Philippines. Sayed El Masry, a special envoy of the OIC secretary general, said the kidnappings create instability and hamper social and economic development in the insurgency-wracked southern region of Mindanao.

“We are viewing this development with grave alarm because all our effort is to have stability in Mindanao,” he told a press briefing in Manila, where he attended a three-day review on the implementation of a 1996 peace agreement between the government and the MNLF.

El Masry hailed the MNLF for helping in efforts to free the kidnap victims, including three personnel of the International Committee of the Red Cross (ICRC) who were seized on January 15 by the Abu Sayyaf rebel group on Jolo island.

• European Parliament resolution of 12 March 2009 on the Philippines having regard to the Declaration of 15 September 2008 by the Presidency on behalf of the EU on the situation in Mindanao, having regard to the appeal issued by the Ambassadors of the European Union and the United States of America and the Australian Embassy's deputy head of mission on 29 January 2009,

– having regard to the third session of the Tripartite Review of the implementation of the 1996 Peace Agreement between the Moro National Liberation Front (MNLF) and the Government of the Republic of the Philippines (GRP) from 11 to 13 March 2009,

– having regard to the Hague Joint Declaration by the GRP and the National Democratic Front of the Philippines (NDFP) of 1 September 1992 and the First and Second Oslo Joint Statements of 14 February and of 3 April 2004,

– having regard to the Commission's Country Strategy Paper 2007-2013 for the Philippines, the programme of support to the Peace Process under the Stability Instrument and the negotiations for a Partnership and Cooperation Agreement between the EU and the Philippines,

• Abu Sayyaf IN two fierce encounters in Indanan Two separate clashes occurred on Monday between the Abu Sayyaf Group (ASG) and elements of the Philippine Marines, where according to a source in Jolo Commander Albader Parad was seriously wounded from sniper bullets. The whereabouts of the International Committee of the Red Cross (ICRC) hostages are still unknown as of press time. Police Senior Supt. Disodado Valeroso, chief of staff and Police Chief Supt.

511 Bensali Jabarani, regional director of the Philippine National Police (PNP) at the Autonomous Region in Muslim Mindanao (ARMM), furnished The Manila Times with a police spot report that confirmed the two encounters of the ASG and the Marines on Monday.

According to Valeroso, the first encounter of the Abu Sayyaf with the Marines occurred on Monday morning at the vicinity of Subah Timahoh, Barangay Andihi, Indanan. The firefight lasted for an hour, Valeroso added.

Another fighting ensued between the Abu Sayyaf and also with the Marines at the vicinity of Bud Kapok, Indanan also on Monday at about 1:30 p.m. As of this writing, the firefight was still in progress, according to the PNP-ARMM that has administrative supervision over PNP-Sulu.

However, the monitoring team of the PNP-ARMM noted that there was no reported casualty. In one unconfirmed report, it stated that Commander Albader died in the fighting. But a retired PNP colonel in Sulu told The Manila Times, that Albader was alive although seriously wounded in the firefight.

Regarding the three ICRC hostages composed of Swiss Andreas Notter, Italian Eugenio Vagni and likewise with the only Filipino Mary-Jean Lacaba, their whereabouts were still unknown. Another source in Jolo said there was no news that the three ICRC hostages were wounded. The source, a teacher in downtown Jolo, said she was optimistic that the three hostages are safe. She presumed that Abu Ali, the titular head of the Abu Sayyaf who has custody of the three ICRC workers brought the three to safer areas. A source at the ICRC in Makati main office who asked not be identified, said the humanitarian group is very much worried regarding the safety of the hostages. He said the families of the hostages are always in panic and very much worried every time news of an encounter of the Abu Sayyaf and military happened. “We hope the Philippine government will resolve this problem soon so that our colleagues can be released already and resumed their humanitarian duties for the people in need,” he said.

• Philippine Rebels Threaten to Behead Hostage A rebel leader in the Philippines has threatened to behead a Red Cross worker being held hostage if Philippine troops pursue rebels fighters.

The leader of Abu Sayyaf rebels, Albader Parad, made the threat in a radio interview Wednesday, saying he would harm one of three Red Cross workers being held. He made the comment after clashes that killed at least three soldiers and two militants.

The Red Cross is calling for the immediate and unconditional release of Mary Jean Lacaba, Eugenio Vagni, and Andreas Notter, who were taken hostage on January 15. A

512 statement says Red Cross staffers are "extremely worried" about the safety of the hostages

The head of the local Red Cross, Philippines Senator Richard Gordon, said he spoke with Parad on Wednesday. He said Parad told him the three hostages are alive and unharmed, but very tired.On Tuesday, a military spokesman, Gaudencio Pangilinan, said troops recovered tents and other equipment belonging to the three captives.Abu Sayyaf gunmen have asked the Philippines military to withdraw from the area before they would enter into negotiations for the aid workers' release.Philippine media said the kidnappers have demanded a $1 million ransom. The government has said it will not pay.

Abu Sayyaf is believed to be linked to al-Qaida and is on the U.S. list of terrorist organizations. It has been involved in numerous kidnappings, bombings and some of the bloodiest attacks in the region.

• Filipino woman who accused US Marine of rape changes testimony, emigrates to US A Filipino woman whose accusations of rape led to the high-profile conviction of a U.S. Marine has altered her testimony, saying in an affidavit that she may have led him to believe she wanted sex.

The woman moved to the U.S. this week and is no longer willing to talk about the case, her lawyer said Wednesday. Lance Cpl. Daniel Smith, convicted in 2006 of raping the woman and sentenced to 40 years in prison, remains detained at the U.S. Embassy while he pursues an appeal.The case strained U.S.-Philippine military relations and became a rallying point for anti-American protesters who have called for the scrapping of a pact that allows U.S. troops to train Filipino soldiers.

Smith's accuser submitted a five-page affidavit to an appeals court Tuesday saying she now doubts her own version of events.

She described the two were drinking, kissing and dancing at a bar at the former U.S. Naval base at Subic Bay before moving to a van, where she originally told the court she was raped while she passed out. Smith had insisted the sex was consensual.The turnabout has shocked her supporters, including lawyer Evalyn Ursua, who said her client terminated her services this week then moved to the U.S. to start a new life and was no longer willing to talk.Justice Secretary Raul Gonzalez said the woman could be charged with perjury. The U.S. Embassy in Manila is consulting with American government legal experts in Washington on the case, embassy spokeswoman Rebecca Thompson said, without elaborating. She refused to comment on reports that the woman had gone to the United States.

513 Smith, 23, from St. Louis, Missouri, is appealing his conviction. Last month, the Philippine Supreme Court ruled he should be serving his sentence in a Philippine jail but left it to the government to negotiate his transfer with Washington.

• Militants to free Red Cross hostage in Philippines Map of the Philippines locating Indanan, where the Islamic militant group Abu Sayyaf and their three Red Cross hostages are located.

Islamic militants in the Philippines have agreed to free one of three Red Cross hostages and the military has agreed to "reposition" its troops to allow a transfer, a local Red Cross official said.Senator Richard Gordon, the head of the local Red Cross chapter, told AFP that he had secured the commitment from Abu Sayyaf leader Albader Parad late Wednesday.

He then held emergency meetings with top defence and military officials.He said it was not clear who among the ICRC workers -- Mary Jean Lacaba of the Philippines, Andreas Notter of Switzerland and Eugenio Vagni of Italy -- would be first out, but it would be the one in most need of medical attention.Previous reports have said Vagni, 62, has a heart condition.Gordon said it was also unclear when the actual handover would take place, but stressed troops were now preparing to move out.As soon as one hostage is freed, a former Muslim separatist leader will act as a negotiator for further talks to get the other two out, Gordon added. Environmental Front

• Thailand Political Front

• Thai anti-gvt group to hold mass rally on March 29(Xinhua) The anti-government group -- United Front of Democracy against Dictatorship's (UDD) will hold another mass rally around the Government House on March 29, UDD core leader Jatuporn Prompan announced Monday.

The number of the UDD-led supporters during the planned mass rally on March 29 will be much more than its previous anti- government rallies, said Jatuporn, who is also an MP of the leading opposition party -- Puea Thai Party, the website by Bangkok Post said. The UDD-led protestors, who are also known as the red-shirted people, will gather at Sanam Luang in central Bangkok prior to marching to the Government House in the afternoon, said Jatuporn."The UDD announced on February 26 the group will take a

514 month to assemble more people, and the UDD supporters in different provinces have voiced their disapproval against the government of Prime Minister Abhisit Vejjajiva," the website quoted Jatuporn as saying.Jatuporn said the red-clad group still demands the government to dismiss Foreign Minister Kasit Piromya, prosecute People's Alliance for Democracy leaders for occupying the Government House and Don Mueang and Suvarnabhumi airports, amend the 2007 Constitution and dissolve the House of Representatives.However, the upcoming UDD-led demonstration will be peaceful and without arms, he said.

• Ex-PM, deputy face charges in Thailand A former prime minister of Thailand and his deputy should face criminal charges for last year's deadly dispersal of anti-government protesters blocking parliament, an official commission said yesterday....

• Ex-Thai PM could be charged for protest crackdown A former prime minister of Thailand and his deputy should face criminal charges for last year's deadly dispersal of anti-government protesters blocking Parliament, an official commission said Monday.

An investigation into former Prime Minister Somchai Wongsawat and former Deputy Prime Minister Chavalit Yongchaiyudh showed they were criminally negligent in overseeing the Oct. 7 police action, the National Counter-Corruption Commission said. Two protesters were killed and more than 500 people were injured.Clashes broke out after police tried to clear the street around Parliament to allow in lawmakers. The most serious casualties were caused by poor-quality tear gas canisters that sent shrapnel flying after exploding.Five senior police officers should also be disciplined for "dereliction of duty and negligence," the commission said.

• Restricted zone for Thai anti-gov't protestors to be created Thai provincial governors have been directed to create a restricted zone for the anti- government group -- United Front of Democracy against Dictatorship's (UDD) supporters to demonstrate during an official visit to provincial areas by cabinet members, Interior Minister Chaovarat Chanweerakul said on Monday.

The protesting zone for the UDD-led protestors has been initiated by Deputy Interior Minister Thavorn Senniam, according to Chavarat, Thai-language news agency INN reported. The restricted area's measure for the UDD-led protestors is to prevent them from trying to blame a third party in case of incidents, the Interior Minister said.

In the past, some cabinet members were pelt with eggs by the UDD-led protestors. On Friday, Deputy Prime Minister 's motorcade was pelt with eggs by the anti-government protestors, while he was visiting a province next to Bangkok.

515 Meanwhile, separately on Monday, Thai Prime Minister Abhisit Vejjajiva denied to make a comment after he was asked by reporters about the recent encouragement by ousted former premier Thaksin Shinawatra to his supporters to participate in a mass rally on this March 29 in the central of capital Bangkok, according to the INN's report.

• Thai anti-gov't protesters rally amid no-confidence debate Amid the ongoing no-confidence debate, a group of Thai anti-government protesters staged a rally at the Democrat Party's headquarters in Bangkok Thursday afternoon demanding Abhisit Vejjajiva, who is the Party head, to resign as the country's Prime Minister.

Some 30 protesters are from the group representing middle classes for democracy, development for institutional politic, and the red-shirted people, Thai-language news agency INN reported.

Thai Prime Minister Abhisit Vejjajiva listens to debate on a vote of no confidence in the House of Representatives in Bangkok, Thailand, March 19, 2009. The debate on a vote of no confidence in Prime Minister Abhisit Vejjajiva and his five cabinet ministers started on Thursday morning, as opposition Puea Thai Party MP Chalerm Yubamrung is leading the attack on the Democrat Party-led government

They handed in an open letter to the Party's official, demanding that the prime minister resign, the government not to borrow both domestic and foreign loans and the People's Alliance for Democracy's (PAD) leaders be prosecuted for shutting down two Bangkok airports late last year.

The mini rally at the Party's headquarters is seen to dampen the political situation of the Democrat-led coalition, which has been grilled by the opposition's no-confidence debate starting from Thursday to Friday. Abhisit and his five cabinet members have been attacked by the opposition partners, led by the Puea Thai Party on charges of malfeasance, corruption and the Constitution's violations. Among the strong allegations launched by the opposition include the Democrat Party's concealing several millions worth of Thai baht donations from the Party members and a listed company in the Thai stock market. During the debate, the opposition also claimed that about two decades ago Prime Minister Abhisit dodged conscription. A Thai man is legally required to register for the military conscription as he is at 20-year old, but Abhisit dodged the draft, according to the opposition allegation. They also attacked a decision by the government of lessening a penalty for protesters, who occupied Don Mueang and Suvarnabhumi airports late last year from a death sentence to a fine between 500 baht (14 U.S. dollars) and 10,000 baht (280 U.S. dollars).

516 The opposition said this would benefit the People's Alliance for Democracy's leaders, who led the protesters to shut down Don Mueang and Suvarnabhumi airports late last year in the climax of their protests to topple the previous government.

But, Prime Minister Abhisit denied all of the opposition charges against his Party, the coalition government, and himself. Concerning the allegation that Abhisit dodged the conscription, Abhisit said he did serve the military service for one year in line with the legal requirement for a university graduate. It has remained uncertain when the debate will end for Thursday. The no-confidence vote is to take place on Saturday.

• Army to root out 'Taksin plan' The army is investigating the so-called Taksin plan, a conspiracy aimed at creating chaos in the country, army chief Anupong Paojinda said on Thursday.

Gen Anupong said he knew of the existence of the plan, which was exposed by the Democrat party, but he did not know the details.The Taksin plan is said to be a conspiracy aimed at overthrowing the government, the army leadership and important institutions in the country.The conspirators are said to have appropriated the name of a former king, Taksin the Great, for their plan.Gen Anupong said those who had thoughts of doing anything bad to the nation, its religion, the royal institution or the people were certanly not good people.They should immediately put a stop to their plans and actions for the sake of the country, he added.However, the army commander-in-chief said these people would not find it easy to fuel further conflict, because the majority of Thais were already tired of politics.Gen Anupong then called on the silent majority to join hands in ensuring the restoration of peace and unity.United Front of Democracy against Dictatorship (UDD) core leader and former government spokesman Nattawut Saikua said he had no knowledge of any Taksin plan.He did not undestand why the claimed plot should be be linked to the UDD and its red-shirt supportersHe also questioned Gen Anupong's investigation of the so-called conspiracy.He wondered just why the army commander-in-chief was taking so much interest in the plot when there was so still no information at all about it.

• Puea Thai hopes to dent government's clean image It has been determined that the no-confidence debate will be mounted a week sooner than planned, after the opposition heavyweights agreed to disagree over the targets they deem "censurable".Chalerm Yubamrung: the public will be expecting fireworks.

Instead of March 26-27, the first grilling of cabinet ministers in many years will kick off today. Although it will still be a two-day affair, the opposition promises it will be a suspenseful prelude to the government's downfall.

The debate schedule was moved up, much to the understandable chagrin of the opposition. But advancing the date should not soften the bluster surrounding the motion,

517 given that the opposition, as the party on the offensive, is expected to always be geared up for the game.Of course, the new timing resulted in a fair degree of commotion from the opposition, which complained to Prime Minister Abhisit Vejjajiva and House Speaker Chai Chidchob. Surprisingly, though, the chief debater Chalerm Yubamrung established that Mr Chai had not bent the rules by hurrying the debate along and neither would the government be at an advantage due to the rushed motion.Mr Chalerm declared he has never felt more confident heading a censure onslaught against a government, not least one led by his perennial enemy the Democrat party.

Today's debate will jog Mr Chalerm's memory back to 14 years ago, when he was among the star speakers on the floor exposing the Democrat-led administration under prime minister Chuan Leekpai, over its alleged shady distribution of the Sor Por Kor 4-01 land papers to the undeserving and ineligible rich. The Democrats were disgraced, resulting in a House dissolution and the party's subsequent defeat in the general election that followed.MrChalerm is banking on a similar outcome this time around but admits he does not expect a sufficient show of no-confidence hands to sink the government. It would be the public sentiment and the extra-parliamentary pressure that deliver the final blow.

Mr Chalerm knows his opposition Puea Thai party will never win the battle of numbers. The party has 187 MPs under its wing and reluctant allies to contend with: 12 MPs from the split-up Puea Thai party have said they will stay neutral, while Sanoh Thienthong, the veteran leader of the five-MP Pracharaj party, does not favour Mr Chalerm being ushered into the prime minister's seat in the event Mr Abhisit is defeated by the no-confidence votes

The opposition also cannot expect a miracle - that the government's own disenchanted MPs will commit political treason by casting no-confidence votes against Mr Abhisit and the five cabinet ministers being censured.

The bottom line for Mr Chalerm is that he must sway the public with his oratorial finesse, presentation skills, and accuracy and precision of debate information. He insists that, when all is said and done, the Democrats will be unmasked and lose the legitimacy to govern. It will be condemned to repeat its sorry legacy brought on by the Sor Por Kor fiasco.

The opposition itself, however, has had to struggle, trying to wind down the list of target ministers while brushing aside remarks that it was ill-timed to go after any corruption trail of a government that has assumed office barely three months ago.

The opposition was constantly revising its censure target roll, triggering allegations of an arrangement being struck whereby certain cabinet ministers whom the opposition had worked with during previous governments, would be spared the grilling.

518 The censure motion was finalised a mere hour before it was presented to the House Speaker. Mr Abhisit tops the censure list, followed by Foreign Minister Kasit Piromya, Finance Minister Korn Chatikavanij, Deputy Finance Minister Pradit Phataraprasit, Interior Minister Chavarat Charnvirakul and Deputy Interior Minister Boonjong Wongtrairat.

The opposition, however, has suffered disunity in trying to agree on the target list. Mr Chalerm stuck to his guns that he would only debate Mr Abhisit, Mr Kasit and Mr Pradit, against whom he felt he had watertight censure evidence.

On the other hand, Mr Chalerm has nothing on either Mr Chavarat or Mr Boonjong. The two ministers were included supposedly because of heavy lobbying by some of the 111 former executives of the dissolved Thai Rak Thai party who are currently serving a five- year political ban, but who nonetheless wield considerable influence in Puea Thai.

The politicians may be seeking retribution against the two ministers aligned with the Friends of Newin group, which broke ranks with the present opposition to join the Democrat-led government.

A source in Puea Thai said the banned politicians, including Khunying Sudarat Keyuraphan, do not see eye to eye with Newin Chidchob, the group's mentor.

Mr Chalerm caved in to pressure from the banned politicians and agreed (although with one condition) to put Mr Chavarat and Mr Boonjong on the censure list: Mr Chalerm maintained he would only "scrape the surface" debating the two ministers and leave them to fellow Puea Thai members who want to settle scores with the two.

Mr Chalerm has often chided the government as being run by a team of "novice schoolboys" who are young and inexperienced at national administration. Among them are Mr Korn and PM's Office Minister Sathit Wongnongtoey. Mr Sathit is off the censure radar, while Mr Chalerm concedes his information on Mr Korn is rather flimsy.

Mr Korn is facing the onslaught by virtue of his commanding a vital ministry. Former commerce minister Mingkwan Sangsuwan has been enlisted to grill Mr Korn.

Mr Mingkwan has been less than willing to step up to the plate, arguing that debating against a government with a relatively short stint would make the opposition look unreasonable.But he accepted the debater's seat in the end, to avoid criticism of appearing too friendly towards the Democrats.Whatever the outcome of the censure debate, the moment of truth for the government will come not from the people inside the House chamber, but from those who will be watching the proceedings on television at homeNattaya Chetchotiros is former President of the Thai Journalists Association, andAssistant News Editor, Bangkok Post.

519 • Thailand Explores Greater Autonomy for Largely Muslim Provinces A Thai government policy review of the largely Muslim southern provinces is considering granting greater local autonomy with reforms including introduction of Sharia Law through Islamic courts. The strategy is part of efforts to bring to an end a five-year insurgency that has cost more than 3,000 lives.

Prime Minister Abhisit Vejjajiva at Foreign Press Club in Bangkok, 14 Jan 2009

The policy review began soon after the government of Prime Minister Abhisit Vejjajiva came to office in December. Speaking to foreign correspondents earlier this year, Mr. Abhsit set out the government's policy goals.

The government plan includes setting up a special office headed by a minister in charge of affairs in the Southern provinces. An interim committee of ministers has examined what the government calls a 'total development concept' directed to the three provinces of Pattani, Narathiwat and Yala.The region is among the poorest in Thailand, heavily reliant on agriculture, especially rubber, as well as mining.While Thailand's 63 million population is overwhelmingly Buddhist, there are more than six million Muslims, largely living in these provinces bordering Malaysia. A Thai government review paper, an English translated copy of which was obtained by VOA, says people in the region consider themselves Pattani Malays rather than Thai.The review paper calls on government to adopt a strategy that is largely peaceful and suggests a military solution will fail to win local community support, even if it succeeds in imposing control.Insurgencies in the 1970s and 1980s came to an end through a process of military action, negotiation and amnesty.

Thai police officers and soldiers examine the wreckage of cars that was exploded after insurgents detonated a bomb hidden inside in Narathiwat province, southern Thailand, 04 Nov 2008 The paper says policy changes in 2002 under the government of Prime Minister Thaksin Shinawatra, with the disbanding of joint military, police and civilian commands, had led the way open for the insurgency to resurface. The first major attack occurred in January 2004 on an army depot. Since then the violence has escalated.Thai government spokesman, Panitan Wattanyagorn, says the new proposals are part of a coordinated approach to the Southern border regions. A state economic think tank, the National Economic and Social Development Board - or NESDB - has completed a master plan for development.

'Southern cabinet' policy

Policy review options include a specially elected local chamber of government, the partial application of Islamic Sharia Law through Islamic Courts and local administrative organizations based on Muslim community leadership. It also calls for security forces and

520 government officials to be selected from the local Southern community or have language, cultural and knowledge of local customs and traditions before being posted.

Panitan says the empowerment of local communities and application of Sharia law is an option under consideration.

Angkhana Neelapaichit and Kraisak Choonhavan at the Foreign Correspondents Club of Thailand (FCCT)

A member of the governing Democrat Party, Kraisak Choonhavan, has been an outspoken critic over the militarization of the Southern Provinces where up to 40,000 troops have been stationed to curb the violence.

Escalating violence

Violence has escalated during the five years. More brutal attacks by the insurgents; drive by killings, beheadings of victims to spread fear through local communities, the torching of schools, killing of teachers, state officials and Buddhist monks, as well as Muslims.

The response by the military has often led to accusations of extrajudicial killings, disappearances, and heavy handed security crackdowns into villages. Kraisak says the government must take action to end state-backed violence.

Justice for all

Angkhana Neelapaichit, chairs a group that monitors human rights abuses in Southern Thailand. She says rather than autonomy as a priority the people of the southern provinces are seeking justice.

The Thai Cabinet this week endorsed a plan to streamline the judicial processes in Southern Thailand concerning the legal treatment of suspected insurgents. The overnment says the changes are designed to ensure fairness and boost confidence in the justice system and a further step towards ending the five-year cycle of violence. Strategic Front

Economic Front

• A time to reform the economy There is one strong criticism of the Government’s stimulus package – it just did not do enough to put money in the hands of the people and to cushion the impact of those affected and who will be affected by the crisis.

521 Yes, yes, RM60bil is a lot of money and together with the first stimulus package of RM7bil, it makes up 10% of gross domestic product (GDP), the sum total of goods and services produced in the economy.

But one must remember that it is not the total amount of money that the Government is injecting into the economy and/or is foregoing in taxes – that figure is just RM18bil, comprising RM15bil as direct fiscal stimulus and just RM3bil as tax breaks.The other major items include RM25bil in Government guarantees for loans and bonds to ensure that credit to smaller, less creditworthy borrowers does not stop. This really should not be included as part of the stimulus package. The US for instance has a stimulus package of almost US$800bil, but guarantees already given amount to over three times that.

But that is not to say that the guarantees are not useful. They will be, especially in an atmosphere where banks are really getting jittery about lending and less creditworthy borrowers are finding it difficult to go to the bond market for loans. The guarantees (80% government and 20% banks) will certainly help banks to mitigate risks.A sum of RM10bil is given to government investment company Khazanah Nasional to take equity stakes in local projects with high multiplier effects. Again, this is not a direct stimulus, and especially since it is in the form of equity interests, it will take time for it to work its way through the system.

Likewise, the sum of RM7bil listed as private finance initiatives (PFI) and off-budget initiatives, will take a while to materialise. There is a long approval process for such initiatives, especially for PFIs which have been talked about endlessly for years, with little having been actually done to date.

At the end of the day then, the direct stimulus package comes out to under one third of RM60bil, at RM18bil, comprised of direct fiscal or budgetary injection of RM15bil and RM3bil in tax breaks.That amounts to 2.7% of GDP. Including the earlier package of RM7bil, the total figure comes up to about 3.7% of GDP, which is low when compared to other countries. But then our situation is not as dire as many other countries.On the positive side, this is certainly something that is easily affordable for the Government, which clearly has decided to be fiscally more prudent by using other measures to try and prop up growth.

Eventually, the effects of the global crisis can only be mitigated and we cannot hope to insulate ourselves fully from the impact. The adjustment process must take its course and it needs time. Too much stimulus is an overkill and can result in considerable wastage.

But the adjustment process should give us some time to think about and put in place a major reform of the economy so that it is on better footing for growth. Among the things to consider would be to increase reliance on the domestic sector by cutting export dependence

522 For the domestic sector to become the engine of growth, all kinds of disincentives, including New Economic Policy quotas and unnecessary bureaucracy and licensing, should be removed to encourage entrepreneurship.Small businesses in all sectors will be the key to such a move. The Government’s role should be to provide the infrastructure such as broadband, efficient transport, an efficient and equitable bureaucracy, etc, to boost the sector.It’s a pity that the Government seems to be losing the opportunity to make reforms in these directions.

• Thai PM says countries must commit to fiscal boost Thailand's prime minister said on Saturday the world's largest countries must maintain spending commitments and coordinate their fiscal and monetary policies to combat a worsening economic downturn.

"We hope to see clear-cut coordination of fiscal and monetary policies for all the major economies, preferably clear targets," said Prime Minister Abhisit Vejjajiva, on a visit to Britain, which is hosting a meeting of the finance ministers of the G20 group of big developed and emerging economies.Officials at the G20 finance ministers' meeting south of the British capital have tried to play down reports that there is a rift between the United States, which favours more global fiscal stimulus, and European countries favouring tougher financial regulation.

In their closing statement, the G20 countries pledged to take all necessary action to restore growth in the face of the worst crisis in the global economy since the 1930s.

Abhisit, speaking at the London School of Economics, also said he wanted countries to step up efforts to reach a new free trade agreement under the auspices of the World Trade Organisation.Thailand is not part of the G20 group of leading and emerging economies. However, Abhisit is scheduled to return to Britain at the time of the G20 leaders' summit on April 2 to represent the southeast Asian grouping ASEAN.He added that he hoped to achieve price stability in Thailand this year. Analysts expect inflation in Thailand to be below zero for at least the first half of the year.

Abhisit calls on US, Europe to reject trade protectionism

• Thailand cannot afford to lose export markets The United States and Europe need to make their positions clear on where they stand on trade protectionism, said Prime Minister Abhisit Vejjajiva.

The prime minister, just back from a visit to Britain, urged US and European leaders to condemn protectionism and formulate an accord to cement their commitment to free trade.As the world economy heads towards recession, many countries, especially countries in the developing world including Thailand, which is an export-driven economy, are worried about rich nations protecting their industries by discouraging

523 imports.The view was shared by leaders of the Association of Southeast Asian Nations (Asean), who released a statement after their summit in Cha-am district, Phetchaburi, earlier this month, calling for the pulling down of trade barriers during the economic crisis.Mr Abhisit and British Prime Minister stood united on the protectionism issue during his recent visit to London.The two will join other leaders in a summit next month in London.

Mr Abhisit said after returning to Bangkok yesterday there was no clear signal from the US and other European countries on efforts to curb the free flow of trade.

• The US and Europe are the key markets for Thai exports. In a bid to tackle the economic downturn in the country and an export slump, the government has deployed measures to boost local spending, including extra allowances for the elderly and bonuses for civil servants and workers with salaries under 15,000 baht a month.

The prime minister said more measures were in the pipeline, including plans to help make villagers self-reliant and better budget allocations for projects in provinces to meet the demands of people there. Social Front

• New 'Al-Qaeda' in SE Asia A NEW group calling itself the Al-Qaeda in South-east Asia has tried to mobilise support from the region for jihad in Pattani, where insurgents continue to battle the Thai government in the Muslim-majority south.

The group is the second to use terror network Al-Qaeda's name in the region, after escaped militant mastermind Noordin Top formed a Jemaah Islamiah (JI) splinter group, called the Al-Qaeda for the Malay Archipelago, about three years ago.

The existence of this new terror outfit became known when its leader - who identified himself as Abu Ubaidah - was interviewed last May by a Khattab Media Publication, though little is known about it. Analysts have described the setting up of the group as a feeble attempt by hardliners to use the conflict in southern Thailand to rally jihadists in South-east Asia. They note that two hardline Islamist magazines in Indonesia - the Jihadmagz and the Sabili - had also recently published articles on southern Thailand. The interview, which was posted online, was picked up by five Malaysian blogs and four Indonesian websites, said Ms Pacharapun Tinnabal from the United States Embassy in Bangkok. The official, who was speaking in her personal capacity, mentioned the new terror group at a Singapore conference on the insurgency in southern Thailand, which was organised by the Institute of Southeast Asian Studies this week. Security experts are aware of the group, but say there was not much to suggest a real threat. In the interview,

524 Abu Ubaidah urged Muslims in Indonesia and Malaysia to join the struggle in Pattani, which he described as a legitimate jihad and not a nationalist insurgency.

Among websites where the interview could be found was the hardline Islamist Arrahmah website, which is manned by Indonesian Muhammad Jibril Abdul Rahman. He is the son of Abu Jibril, a hardline JI preacher who mentored escaped terrorist Mas Selamat Kastari. Terror experts have tried to identify Abu Ubaidah's origin, but it remains unclear.

• Millions affected by drought across Thailand Drought has affected Thailand's 39 provinces and over 4 million people in 12,517 villages have been suffering from the disaster, a senior official at the Interior Ministry said Monday.

The 39 drought-hit provinces include 14 provinces in the North, 18 provinces in the Northeast, three provinces in the Central, and four provinces in the South, said Anucha Mokhawes, director-general of the Civil Disaster Prevention and Mitigation Department of Interior Ministry, the website by The Nation newspaper reported.

Anucha said the government has distributed 135.49 million liters of water to the affected people, adding that each provincial administration can also use 50 million baht (1.39 million U.S. dollars) worth of emergency fund to help the affected people. Environmental Front • Singapore

Political Front Strategic Front

Economic Front

• Cracks appear in Lee's mantle While a populist backlash against perceived corrupt bankers and financiers mounts in the United States, all is comparatively calm in financial hub Singapore, where the state and finance sector are virtually one and the same.

Yet some analysts wonder whether the deepening downturn could eventually spark popular calls for political change to the People's Action Party (PAP)-led government, similar to the mass mobilizations that ousted Indonesia's and nearly toppled Malaysia's entrenched authoritarian regimes amid the 1997-98 Asian financial crisis.

525 Prime Minister Lee Hsien Loong faces Singapore's worst economic crisis since it achieved independence in 1965 andsome analysts believe his handling of the downturn will determine largely his future staying power as premier once his influential 85-year- old father, Minister Mentor and national founder Lee Kuan Yew, eventually passes from the scene.

The senior Lee warned earlier this month that gross domestic product (GDP) growth could contract by as much as 8% this year. As one of Asia's most open economies, where exports of goods and services last year accounted for around 145% of GDP, Singapore has been especially hard hit by the collapse in global trade. Investment bank Credit Suisse estimates every 10% lost in goods and services exports will through first round effects shave 7.2% off Singapore's GDP.

But it's Lee's government's financial management, particularly its role in running the Government of Singapore Investment Corp (GIC), Temasek Holdings PTE, and, perhaps most crucially, the Central Provident Fund, which is drawing more critical attention. Earlier this month the Straits Times reported that GIC's assets, often roughly estimated at US$300 billion, had fallen by around 25% off their peak of last year.

The state-controlled newspaper quoted the senior Lee saying that GIC had invested "too early" when it took stakes in early 2008 in Swiss investment bank UBS and now diminished US banking giant Citibank. Until a recent preferred to common stock swap, GIC had lost 80% on its Citibank gambit.

Singaporean eyebrows also rose earlier this year when Temasek chief executive officer Ho Ching, the wife of Prime Minister Lee, announced she would step down from her post in October and be replaced with an Australian national. Temasek executives have said that her resignation is not related to the investment company's recent financial performance, which in historical terms has tanked.

The sovereign fund shed 31% of assets' value between April and November 2008, driving its portfolio down to US$127 billion, according to a Ministry of Finance report made to parliament. Some analysts expect even worse when the sovereign fund announces its total annual results, expected in the weeks ahead. The senior Lee was quoted saying in the local press that there was "no equal" inside Temasek to the outside Australian national candidate appointed to the post, but later backtracked on the comment.

The mentor minister's flip-flop about Temasek's top management capabilities struck some as odd, considering the sovereign fund had until recently claimed to have earned an average 18% in total annual shareholder returns. It's notable in retrospect that the International Monetary Fund (IMF), in a 2006 report, inquired Temasek managers whether they "took into account the impact of its investment on the overall economy's exposure to sectors and countries".

526 The IMF said in an August 2008 report that GIC's and Temasek's operations "do not appear to undercut the formulation or conduct of domestic policies", though this assessment was made before government officials revealed the extent of their recent losses. Pension questions

Opposition politician and political scientist James Gomez, for one, believes that the mounting crisis has exposed flaws in the government's economic management. He says that while Temasek's and GIC's losses have not overtly affected the day-to-day lives of most Singaporeans, they could eventually impact on the Central Provident Fund (CPF), a state-run compulsory social security program.

The CPF board has consistently said it only invests funds in "risk-free" government bonds and bank deposits, but both opposition and PAP politicians have contradicted those claims. Opposition politicians, including Low Thia Khiang, have questioned whether the funds paid into the CPF actually provide a de facto cheap source of finance for GIC in particular to invest abroad.

GIC officially acknowledges that it invests overseas some of the proceeds raised from government bonds. However, the government does not publicly release information on assets held abroad or data on the position of the consolidated public sector, according to the IMF. That's historically raised criticisms that could intensify in the months ahead as the economy weakens. Opposition MP Low was quoted in the Straits Times in September 2007 asking in parliament whether the "government short-changes Singaporeans by giving CPF members 3.5% of the interest rate while the GIC makes 9% and pockets the balance of 5.5%".

Gomez says that because there is no clear evidence to show that CPF funds have disappeared with GIC's and Temasek's recent losses, there has not yet been a public reaction against the two investment funds' management. However, he contends there is a growing "disquiet" about the various mechanisms the government has since 2007 put in place to delay CPF disbursements to the population, including a rise in the minimum retirement age. Those measures are a reflection, some believe, of the CPF's weak financial position, which analysts say has been hampered by a pro-business government policy in recent years to substantially reduce employers' payments into the scheme. The IMF said in 2006 that "steps are needed to increase income replacement rates for retirees relying on their [CPF] savings". It's not apparent - three years later and amid the country's worst ever economic crisis - that those recommended steps have been taken.

There are other areas of potential popular agitation, including a nagging perception, expressed on blogs and among the political opposition, that top government officials are grossly overpaid. In April 2007, ministers received a 60% pay hike, bumping their pay to

527 an average of US$1.2 million per year. Prime Minister Lee's salary jumped at the time to the Singapore dollar equivalent of US$2 million. The official pay hikes were justified by a compensation system created in 1994 by the senior Lee, then premier, that pegged top officials' salaries to what they might earn at the same level in the private sector.

Then, the senior Lee strongly defended the hefty pay hikes, warning the previous month that without them "your jobs will be in peril, your security at risk and our women will become maids in other people's countries". With the global downturn, at least the first of those dire warnings has come a cropper for many Singaporeans, though there are no indications yet government ministers' salaries will be cut back in line with rising global discontent over perceived corruption in top level corporate compensation packages.

Prime Minister Lee has responded to the mounting economic crisis through vigorous fiscal pump priming. The government's 2009 budget entails fiscal measures, including a heavy dose of off-budget loan guarantees, which amount to 8% of GDP, the largest such percentage in Asia. Underscoring the potential depth of Singapore's crisis, the fiscal package is nearly twice the amount as a percentage of GDP the government mobilized in the wake of the 1997-98 Asian financial crisis. Half of the fiscal cash is expected to be injected into the economy this year, according to Credit Suisse.

Whether this will be enough to keep rising social discontent from morphing into calls for political change and greater government transparency is still unclear. Opposition politician Gomez contends that most Singaporeans are "too fearful too express their desire for political change" in light of the government's notoriously harsh handling of its critics, including the use of crippling defamation suits to bankrupt opposition politicians.

He believes that the government's fiscal strategy amounts to "cash handouts to mitigate criticism", which, he concedes could still work in Singapore's materialistic society. But Singapore's wealth has recently greatly diminished, perhaps more than many realize, and as the global economic crisis bites deeper at home, it's possible that desperate Singaporeans look to pin the blame on Lee's government.

• Singapore worst-hit in southeast Asia Singapore will be Southeast Asia's weakest economy, shrinking nearly 5 per cent this year, while Thailand faces its worst recession in 11 years, reflecting a collapse in exports across Asia, a Reuters poll shows.

The Philippines and Indonesia will be the only economies in Southeast Asia to record growth this year but that growth will be sharply slower than in previous years with Indonesia hit by falling prices of commodities, the bulk of its exports.

528 Singapore's gross domestic product, or the value of all goods and services produced, is set to shrink 4.9 per cent in 2009, according to the median forecast of the Reuters quarterly poll.

It would be city-state's worst-ever economic slump and mark a sharp a turnaround after averaging 6.4 per cent annual growth over the past five years.

As a small, open economy Singapore is being badly hit by the downturn although analysts foresee it rebounding 3.9 per cent in 2010 as fiscal stimulus kicks in.

In contrast, Southeast Asia's biggest economy, Indonesia, is poised to expand by 4.0 per cent this year, and 5.1 per cent in 2010, as exports contribute only about a third of GDP, making it much less dependent on trade than its neighbours.Still, the growth forecast is well down from a 4.8 per cent estimate in a poll three months ago.Weak exports and falling commodities prices weigh on growth, and analysts said the government needs to take further steps to support the economy on top of last month's $6.1 billion (Dh59 billion) fiscal stimulus package.

In Malaysia and Thailand, demand is hurt by crumbling exports. Thailand's economy is set to shrink 1.5 per cent this year while Malaysia will see a 1.2 per cent contraction. Malaysia launched a $16-billion stimulus after January exports fell 28 per cent, the biggest drop in nearly 30 years.

• Singapore, Oman bilateral ties set to grow stronger Singapore's President, S R Nathan, said bilateral ties between Singapore and Oman are set to grow stronger as both countries mark their 25th anniversary of diplomatic ties next year. President Nathan was speaking to Singapore media at the end of his visit to Oman. He will proceed to Qatar as part of his visit to the Middle East. Reflecting on the friendship on Sunday, the president said while Oman's leaders had expressed interest in learning from Singapore's development, there was also much that they could teach Singapore. President Nathan said: "They're rich in oil and gas. They're weathering the present crisis much better than the others. But yet they address it with such humility, and I think it's a lesson that many of us can learn." He also expressed admiration for the Omani people's preservation of their rich cultural heritage, whether it's through the clothes they wear, or the houses they live in.

Mr Nathan said: "We have a rich heritage which we cannot ignore, whether it is Chinese, Malay, Indian or Indonesian. And even though we are educated in the English language, (and) interacting with the world, we must not forget our heritage." Earlier on Sunday, the president visited the Jewel of Muscat, a joint project between Singapore and Oman. The boat is a faithful reconstruction of a traditional ninth century West Indian Ocean dhow, or trading vessel, that is believed to have sailed between the Arab world and the Far East through an ancient maritime Silk Route. It is modelled based on archaeological evidence,

529 on the wreck of a ninth century Arab vessel discovered off Indonesia's Belitung Straits in 1998. The Jewel of Muscat will set sail early next year when it catches the monsoon winds eastward to Singapore. The journey may not be smooth sailing all the way, but the crew will still go ahead in a spirit of goodwill and exploration.

• Singapore goes on a million deeds challenge Small acts add up to big leaps and with this in mind Singapore is embarking on a challenge to do a million deeds.

Organised as part of the Singapore 2010 Youth Olympic Games movement, the event aims to celebrate the spirit of excellence, friendship and respect.

Singaporeans are encouraged to post their deeds online so as to share them with others. The website is designed to resemble a virtual Torch Relay. Every deed posted will move the virtual Youth Olympic flame a step closer from Greece to Singapore. The idea for the "Million Deeds Challenge" was inspired by students of Holy Innocents' High School who shared their thoughts on how young people could make a positive impact on their community by expressing the Olympic values. The challenge was launched by Ms Grace Fu, Senior Minister of State for National Development and Education, at the Jurong Regional Library on Tuesday.

• Singapore shares close down 1.72% Singapore shares closed 1.72 per cent lower on Tuesday after the government said exports fell by 24 per cent in February, further confirming the bleak economic outlook.

The blue-chip Straits Times Index fell 27.29 points to 1,559.03 on a volume of 996 million shares worth S$804 million (US$524 million). Losers led gainers 207 to 173, with 851 stocks unchanged.

The 24 per cent decline in February non-oil domestic exports followed the record 35 per cent year-on-year plunge in January. Banking stocks were down. United Overseas Bank fell 53 cents to S$8.82, DBS shed 30 cents to S$7.25 and Oversea-Chinese Banking Corp slid 15 cents to S$4.37. Among property stocks, Keppel Land was unchanged at S$1.24, while City Developments closed 26 cents lower at S$4.88 and CapitaLand fell nine cents to S$2.07. Singapore Telecommunications eased a cent to S$2.43 and Singapore Airlines slid 27 cents to S$9.87. Agricultural products supplier Olam International gained six cents to S$1.36, while marine engineering group Sembcorp Marine closed down a cent at S$1.48. Social Front

• Number of dengue cases in S'pore down in last few weeks

530 Dengue killed three times more victims in 2008 than in recent years in the Asia Pacific region. With the dengue season set to begin in Singapore in May, health authorities are keeping close tabs on the number of reported cases.

Experts said 1.8 billion people in the Asia Pacific region are at risk of getting dengue fever. Dengue is the most widespread tropical disease after malaria and about 3,000 people died from it in Southeast Asia last year.

The problem is currently being discussed at a ten-day workshop attended by Asian dengue specialists in Singapore. Singapore saw a 26 per cent jump in number of dengue cases in the first nine weeks of the year, compared to the same period the year before. But in the past few weeks, the number of cases has been dropping.

136 cases were reported in the second week of February, but in the first week of March, the figure went down to 88. Right now, there are 13 dengue clusters on the island. One of them – Ang Mo Kio Avenue 10 – has already seen 19 cases reported. To spread the dengue prevention message, the National Environment Agency (NEA) will be working closely with Community Development Councils (CDCs). Senior Parliamentary Secretary Amy Khor, Environment & Water Resources Ministry, said: "To make the programmes and campaigns more effective, the CDCs, together with the NEA, are planning to target the programmes with specific groups of people – the young, the elderly, the students living in the hostels and even the foreign workers living in the dormitories." There are also plans to provide better designed bamboo pole covers to needy residents to prevent rainwater from collecting in the pole holders where mosquitoes can breed.

• Three religious landmarks receive first grants from Nat'l Monuments Fund : Three religious landmarks are the first to be awarded grants for urgent repair works under the National Monuments Fund.

The Church of Our Lady of Lourdes, Sri Mariamman Temple and Hong San See temple will receive a total of S$619,170 out of the initial S$1 million set aside last year. According to the Preservation of Monuments Board, the Church of Our Lady of Lourdes at Ophir Road will receive S$449,000 for urgent roof and structural repairs to the belfry and roof. Singapore's oldest Indian temple, the Sri Mariamman Temple along South Bridge Road, has been granted S$136,420 for waterproofing and strengthening of its main roof to prevent water damage to its frescoes. The Hong San See Temple along Mohamed Sultan Road will get S$33,750 to repair the retaining wall along the slope behind it. The Preservation of Monuments Board (PMB) said the remaining funds of S$380,830 will be rolled over to the next financial year. Eligible national monument owners who wish to tap the fund to prevent loss or damage to the structure's architectural or historical features can file their applications for the second year of funding by 31 October 2009.

531 • Physically disabled volunteers offer e-filing tax service to taxi drivers : It is that time of the year again to submit income tax returns. And proving that they too can contribute to society and return a favour, a group of physically disabled volunteers is helping taxi drivers e-file their taxes. Twelve volunteers from the Society for the Physically Disabled (SPD) are providing this service till April 17 to thank those who had helped drive them around. Last year, about 1,100 cabbies sought help from these volunteers. those who want to get help can do so at Tiong Bahru's SPD Ability Centre, No. 2, Peng Nguan Street, Mondays to Fridays, from 11am to 3pm. Environmental Front • Vietnam Political Front Strategic Front

• Vietnam protests Philippine maritime law: report Vietnam protested against a bill signed into law in the Philippines, saying that it lays claim to parts of the disputed Spratly Islands in the South China Sea, state media said Friday.

"Vietnam protests against the act and calls on the Philippines to refrain from undertaking similar actions so as not to affect peace and stability in the region and the growing ties between the two countries", foreign affairs spokesman Le Dung was quoted as saying in Vietnam News daily.

Earlier this week, President Gloria Arroyo signed into law a controversial bill defining the Philippines' maritime boundaries, a move already denounced by China.Arroyo's chief aide, Executive Secretary Eduardo Ermita, said the "baselines law" did not openly claim the Spratly islands, but added the Philippines' claim to the area was already covered by existing laws and did not have to be covered by the new legal document.The Spratlys sit astride important sea lanes and may contain significant oil and gas deposits. The islands are claimed in whole or in part by the Philippines, China, Brunei, Malaysia, Taiwan and Vietnam.On Friday, Vietnam also protested against an authorisation given by China to a tourism firm to begin tours to an island in the Paracel, another disputed archipelago in the area over which China and Vietnam claim sovereignty.

Economic Front

• Vietnam's Agent Orange Victims Feel Cheated by U.S. Court

532 Vietnamese victims of the notorious Agent Orange have condemned a U.S. court's decision to dismiss their legal action against manufacturers of the highly toxic defoliant used to deprive communist forces of forest cover during the Vietnam War.

On Mar 7, a federal court in New York dismissed a legal action brought by Vietnamese plaintiffs over the use of the defoliant agent by U.S. forces from 1961 to 1971 where large quantities of Agent Orange were sprayed across parts of Vietnam. The plaintiffs had sought compensation from the firms that manufactured the chemical, which allegedly caused birth defects, miscarriages and cancer. They said use of the defoliant - to strip away forest cover during the war - was a war crime against millions. But U.S. Judge Jack Weinstein ruled there was no legal basis for their claims.

Delivering a 233-page ruling, Weinstein said ''there is no basis for any of the claims of plaintiffs under the domestic law of any nation or state or under any form of international law.''

Vietnamese victims of Agent Orange filed their suit last January in a New York federal court, accusing 37 U.S. chemical firms including Monsanto, Dow Chemical, Hercules, Occidental Chemical, Ultramar Diamond Shamrock, Maxus Energy, Uniroyal Inc and Wyeth, of producing and supplying toxic defoliants used by the U.S. army in Vietnam.

The lawsuit won mass support in Vietnam where 11.5 million people signed a petition. This is the first time that Vietnamese citizens have ever sought legal compensation for the effects of Agent Orange, which contains the toxic chemical dioxin linked to cancer, diabetes and birth defects among Vietnamese soldiers and civilians and U.S. veterans. Exposure to Agent Orange can result in chronic lymphocytic leukemia (CLL), the U.S. National Institute of Medicine said in a 2003 report. The report, based on a reassessment of six studies of herbicide exposure, concluded there was ''enough data to support an association of exposure to these chemicals and the development of CLL'', a form of cancer of the blood.

About 44 million litres of these defoliants were Agent Orange with close to 170 kilogrammes of dioxin, affecting as many as two million Vietnamese.

In 1984 in a class action settlement manufacturers agreed to pay 180 million U.S. dollars to U.S. war veterans who died or became ill after exposure to defoliants. Ironically the judge who decided on this matter was Weinstein. Linguist Nhan said there were some contradictions in Weinstein's arguments.

Many international observers agree with Nhan and point out that the case is a test of the reach of U.S. courts as it considers the power of the U.S. president to authorise the use of hazardous materials during a time of war.

533 But as remarked John McAutiff, executive director of the New York-based Fund for Reconciliation and Development (FRD), in a statement, ''Judge Weinstein has made it easier for our country to continue to evade moral responsibility for the consequences of its action.'' FRD Hanoi representative Andrews Wells-Dang also said the U.S. should practice what it preaches in accepting responsibility. In theory, Weinstein's Mar. 7 decision can be appealed and then taken to the U.S. Supreme Court. When asked about her impression about the ongoing lawsuit, Nguyen Thi Oanh, a mother of a boy and a girl deformed by dioxin, in Ho Chi Minh City, told IPS: ''I hope it would come to something. Someone should be responsible of the toxic chemical that ruins my children's lives.''

This is also the hope of VAVA vice president Nguyen Trong Nhan when he met other VAVA members over the weekend in Hanoi to discuss further steps to take in their quest for justice.

• Vietnam growth seen at 0.3% Vietnam recorded 6.2 per cent growth in 2008, the lowest level in almost a decade and a sharp drop from 8.5 per cent in 2007.

VIETNAM'S economy will show almost zero growth this year, well below the government's target of 6.5 per cent expansion, the Economist Intelligence Unit said on Monday. The analysts' forecast of 0.3 per cent growth still leaves Vietnam as one of just four Asian economies seen growing this year, said Justin Wood, a South-east Asian expert at the global research and advisory firm. Mr Wood was speaking to reporters ahead of a two-day conference of business and government leaders discussing Vietnam's development. He presented data that showed China, India and Indonesia as the only other regional economies seen expanding this year. Vietnam recorded 6.2 per cent growth in 2008, the lowest level in almost a decade and a sharp drop from 8.5 per cent in 2007. The government has announced a stimulus package of spending and tax cuts to boost the economy, which the International Monetary Fund has predicted could grow at five per cent. Mr Wood said the expected slow growth rate was mostly due to external factors as the economies of the United States, Europe and Japan, the main markets for the country's exports, are expected to contract.

• Vietnam's exports would fall in value this year by 31 per cent, he said. Prime Minister Nguyen Tan Dung, who is to address the conference on Tuesday, was quoted last month as saying Vietnam's economic slowdown would end by May. Social Front

• Vietnam bus plunge 'kills 10' At least 10 people were killed when a bus carrying mostly Russian tourists plunged off a cliff in southern Vietnam, state media report. Nine of the dead were Russian, the other was a Vietnamese guide. Most of the victims died at the scene. Fourteen other people

534 were injured in the accident near the highland resort of Da Lat. Vietnam has a poor record on road safety; more than 12,000 people were killed in traffic accidents last year. An initial investigation suggested the bus was speeding down a hill before veering off the cliff late on Friday, police official Nguyen Van Lam was quoted as saying by the Associated Press news agency. There were up to 26 people on board at the time of the accident

• Vietnam foreign investment lower but still strong Vietnam has attracted foreign direct investment pledges of 5.3 billion dollars so far this year, down 30 per cent from the same period last year, a government official said Thursday.

Le Hai Van, deputy head of the Statistics and Policy Division of Vietnam's Foreign Investment Agency, said that amid the current global economic downturn, the figure was an encouraging sign despite its drop. About 1.5 billion dollars of the money involved 68 new investment projects. The other 3.8 billion dollars came from increases in the registered capital of 10 already existing projects. Local media said most of the new foreign investment was in industrial production, in contrast to 2008 when it was concentrated in real estate and services. The top destinations for the new investment were the two southern provinces of Ba Ria Vung Tau and Binh Duong. Vietnam attracted 64 billion dollars in new foreign direct investment pledges in 2008, tripling the previous year's figure. Foreign investment funds disbursed in 2008 was a record 11.5 billion dollars.

• Analysts say Vietnam must boost infrastructure spending Vietnam is falling dramatically short of the infrastructure spending it needs to sustain high economic growth rates, experts told a gathering of business executives Tuesday. 'If you look at World Bank standards, infrastructure investment should be double GDP growth,' said Andrew Hong, director of corporate finance at PriceWaterhouseCoopers Capital in Malaysia. In Vietnam, 'investment in infrastructure should be about 15 per cent' of the gross domestic product, but instead amounts to less than 10 per cent.

Paul Hoogwaerts, Vietnam representative of Maersk, the world's top shipping firm, said underinvestment in infrastructure had caused severe bottlenecks in Vietnamese ports in 2008, and that only the global economic slowdown was relieving the pressure.

'Last year in April and May, the lack of infrastructure really hit us,' Hoogwaerts said. 'We had major congestion in the ports, because importers were buying into Vietnam like there was no tomorrow.' Hoogwaerts said the drop in Vietnam's exports and imports since last autumn afforded the country a window of opportunity to catch up to infrastructure needs. Vietnam expects nine new container ports to come online over the next few years, but will need to start a new round of port construction in 2012 to meet future demand.

535 Vietnam's economy is heavily dependent on exports, which accounted for 70 per cent of GDP in 2008. Exporters have long complained that inadequate transportation infrastructure makes it difficult for their goods to reach customers in Europe and the US. Because Vietnam has no deep water ports that can handle the current generation of large container ships, goods must first be shipped to bigger ports such as Singapore and Hong Kong for transshipment. The country's first port that can handle 80,000-ton container vessels, the new Tan Cang-Cai Mep facility south of Ho Chi Minh City, is scheduled to open in June. Vietnam has been particularly inefficient at integrating infrastructure investments. The new ports in Ho Chi Minh City and at Tan Cang-Cai Mep are served by four-lane highways that are frequently clogged with motorbikes. The country's freight rail network is minimal. Hoogwaerts said government decisions to build nine small container ports rather than one large one seemed misguided. More recently, the government has developed plans for a deep water transshipment port at Van Phong Bay in the centre of the country, far from any airport and hundreds of kilometres from the manufacturing centers around Ho Chi Minh City.

But Hong said private investment, not government funding, would be required to fund the needed infrastructure. By 2010 the government's share is expected to decline to 23 per cent of total infrastructure spending, while private investment will rise to 44 per cent.

• Vietnam experts calm despite clashing growth estimates International analysts in recent days have presented wildly varying estimates for Vietnam's 2009 GDP growth, but local economists said Wednesday they were not worried. 'The global situation is volatile, and international experts cannot forecast the current situation,' said Tran Dinh Thien, director of the Vietnam Institute of Economics. 'So how can they do that for Vietnam?'

At a business roundtable that concluded Wednesday, the only thing economic forecasters could agree on was that the government's growth target for 2009 was too optimistic.

Justin Wood, director of The Economist Intelligence Unit's Southeast Asia Corporate Network, forecast growth for 2009 at just 0.3 per cent, down from 6.2 per cent last year. Lim Chuan Poh, CEO of Singapore Telecommunications International, said growth would likely come in at 3 per cent. JP Morgan Chase Chief Economist David Fernandez agreed with an International Monetary Fund forecast that put growth at 5 per cent. All the estimates were lower than the official government target of 6.5 per cent. Lack of information about Vietnam's economy is the main reason for the different estimates,' said Tran Duc Nguyen, former head of the Prime Minister's Research Commission, an economic advisory council that was abolished in 2006. 'If they had sufficient data, the figures would not be varying by a factor of twenty times.' Nguyen said The Economist Intelligence Unit's low estimate was due to excessive reliance on Vietnam's export economy, not domestic demand, which he claimed constituted a large portion of

536 Vietnam's GDP. According to official statistics, however, exports account for 70 per cent of Vietnam's GDP. The economists also said they felt GDP growth was overrated as a measure of economic well-being. 'Emphasizing the rate of economic growth is very biased,' Nguyen said. 'It does not help to raise the quality of people's lives.'

Since the 1990s, Vietnam's government has championed the success of its 'doi moi' policies of economic reform in delivering greater wealth to its people. The country cut its poverty rate by more than half between 1991-2005, and per capita income topped 1,000 dollars per year in 2008. Economists warn that falling export revenues due to the global economic slowdown are leading to large-scale layoffs and threatening the government's ability to raise enough revenue to meet its budget needs. Some observers worry that economic setbacks may lead to rising social and political tension.

• Vietnam GDP growth to slump to 0.3 percent: UK research firm A migrant worker at a construction site in the suburbs of Ho Chi Minh City on February 25, 2009. Vietnam’s gross domestic product (GDP) growth is expected to be just 0.3 percent this year, down from around 6.2 percent in 2008, according to British research and advisory firm Economist Intelligence Unit.

But, in the context of the global economic recession, it is not very serious compared with other countries in the region, said Justin Wood, director of Corporate Network and Southeast Asia expert at the London-headquartered Economist Intelligence Unit.Wood was speaking to reporters Monday ahead of a two-day conference of business and government leaders to discuss Vietnam’s development.He said global economic growth is estimated at only 2 percent.

The country’s three biggest export markets, the EU, the US and Japan, are expected to see economic declines this year, hitting its exports.This would increase the unemployment rate to 8.2 percent, he said, from 4.7 percent last year.Equally, though, the government must not lose sight of the longer-term challenges in Vietnam, namely upgrading infrastructure, stamping out corruption and improving the policies and institutions that oversee the country's economy and financial system, he said.The two-day Business Roundtable with the Government of Vietnam 2009 will open in Hanoi today.Business leaders from Vietnam and abroad will meet with top government officials to discuss the impact of the global crisis on the country and the administration’s response, as well as the country’s longer-term path.Prime Minister Nguyen Tan Dung, who is to address the conference today, was quoted last month as saying Vietnam’s economic slowdown would end by May.

• IMF downgrades growth forecast for

537 The International Monetary Fund has downgraded its growth forecast for Vietnam to 4.75 per cent this year.It had earlier predicted a 5 per cent increase in real gross domestic product.

Vietnam's government has set a target of 6.5 per cent.The IMF says the once-soaring economy faces considerable challenges and could slow further on the back of weaker domestic and external demand.Earlier this month, the World Bank also lowered its growth forecast for the country, to between 5.0 and 5.5 percent.The government says Vietnam's economy should begin to bounce back from a period of slower growth by the end of this year.

• Bird flu kills child in VietnamLast Updated: 9 hours 11 minutes ago A three year old Vietnamese boy has died from bird flu becoming the country's third human victim of the disease this year.A doctor in southern Ho Chi Minh City says the boy was admitted to the city's Tropical Diseases Institute on Monday.He says the child tested positive for the deadly H5N1 strain of the avian influenza virus.The boy's condition deteriorated on Thursday morning and he died in the afternoon.Vietnam has the world's second highest bird flu death toll after Indonesia, with 55 deaths

• Vietnam govt sees up to 400,000 more jobless in '09 - Between 300,000 and 400,000 people will lose their jobs in Vietnam this year, and some 6,000 Vietnamese workers have been sent home from abroad due to the global slowdown, the labour minister said on Friday.

Nguyen Thi Kim Ngan told a parliamentary meeting the job losses this year would be mostly in export processing sectors such as garments and footwear.

At the end of 2008, Vietnam's workforce stood at 45 million, with roughly half employed in agriculture, forestry and fishery. Unemployment was 4.65 percent, the ministry said, implying just over 2 million people were without a job.Vietnam's parliament officially forecasts economic growth this year of 6.5 percent, but economists widely view that number as unattainable, given falling exports, remittances and foreign direct investment.

Many, including the International Monetary Fund and the World Bank, expect growth to be between 4.5 percent and 5.5 percent.

Ngan said about 6,000 Vietnamese Vietnamese working abroad had been sent home after being laid off by foreign employers. The government was still aiming to send some 90,000 workers overseas this year, up from 85,000 last year.Vietnam sent nearly 18,000 workers abroad in the first two months of 2009, mainly to South Korea, Taiwan, the United Arab Emirates, Bahrain and Japan. Environmental Front

538 • Laos

Economic Front ¾ Lao-Vietnam trade to reach US$ 1 billion by 2010 Lao government expects the trade between Laos and Vietnam to increase from US$ 423 million in 2008 to US$1 billion by 2010, after the two nations signed a new agreement in Vientiane last week.

The new agreement on cross-border procedures was signed by Minister of Industry and Commerce of Laos, Dr Nam Viyaket and Vietnamese Minister of Commerce, Dr Vu Huy Hoang in Vientiane on 13 March 2009.

This agreement is part of the two nations effort to enhance and increase trade and to reduce to the minimum the many existing documentary inspecting processes.

As part of the revised agreement between Laos and Vietnam, only a single goods declaration form is needed by the owners of goods to be shown to inspectors to verify that the shipment is destined to third countries and 10 ASEAN nations and not meant for Laos and Vietnam.

The purpose of this new agreement is to remove the possibility for any inspector to impose taxes on the goods.

Over the years, Laos faced difficulties with export goods in cross-border areas because inspectors took a long time to process the documents and the business people complained of wastage of time and loss of money, said the commerce officials of Laos.

¾ Financial turmoil has minimal impact on gold transactions The current global financial turmoil has minimal impact on the trade in gold and silver products in Laos as these two precious metal products are not export oriented.

The transactions in gold products are with locals and in fact only a small portion is exported, just two to three per cent, said Chairman of Lao Gem and Jewelry Traders’ Association, Mr Phouvong Phamisith, last Friday.

He said that the transactions, during this economic downturn, decreased by 10 to15 per cent but this figure is lower than a neighbouring country, Thailand and this is because it exports a certain percentage of its gold products.

Presently, the price of gold hovers around the US$900 per ounce mark in the world’s gold markets and this is a drop from its high of around US$1,000 per ounce in February this year.In the local context, the price of gold is priced in accordance to the price in the

539 gold markets in the world and presently it is 3.8 million kip or US$400 for one baht weight or 15.16 grammes.

However, Mr Phouvong, who has been in the gold business for 30 years, believed that the gold price in 150 jewelry shops in Talat Sao or Morning Market in Vientiane might correct further to 3.3 million kip and 3.5 million kip per one baht in the future.

He also said that the gold products were not well selling like hot cakes during the last Vietnamese Tet and Chinese Lunar New Year festive season because many gold customers had already retrenched or were out of town.In order to stimulate the trade in gold in Laos the government should get the foreign gold miners in Laos to sell a portion of their newly mined gold, in the form of gold ingots, in the local market, and at prices that are lower than the price of gold in the international gold markets,” said Mr Phouvong to KPL News last Friday.

¾ Russia to help Laos build three hydropower plants Russia will help Laos build three hydropower plants in the south of the country to supply domestic demand and exports.

Currently, the Region Oil Company of Russia is working on documents to sign with the Lao government and developers, Xinhua news agency quoted the Laos’ English-language daily as saying.The documents include a shareholder agreement, a project financing scheme, power purchase agreements (PPA), an operation and maintenance agreement, and concession agreement for the projects of three hydropower plants, namely Nam Kong 1 in Attapeu province, Xekong 4 and 5 in Xekong province.

The company has carried out all necessary surveys and prepared drawings with approval from the Lao Ministry of Public Works and Transport.The selection of contractors to carry out construction of the projects is also in process, said the Russian company Deputy General Director Vasily Morgun.The three hydropower plants are estimated to cost more than 17. 1 trillion kip (about two billion USD) and have an installation capacity of 1,200 megawatts. They are expected to start operation in 2014, 2015, and 2016, respectively

¾ Govt speeds up establishment of one door service Lao government is accelerating the establishment of one door service aiming at boosting economic growth amid economic turndown.

So the government has decided to adjust the gross domestic products to decrease from 8 per cent to 6.9 per cent of GDP this year.

Minister to Prime Minister’s Office Mr Chueang Sombounkhan said, “The latest estimation exposed that this year economy would grow only 6.9 per cent. This figure is lower than the annual fiscal year.”He said that the Government issued a number of measures to deal with current global financial crisis and to promote the economic growth

540 which was approved by the National Assembly with its attempt to stimulate the economic growth.

For the foreign investment, the government would set up the one door service, which expected to be completed soon in order to attract more foreign investment. “This is a key to achieve the government plan of economic growth, he disclosed at a recent meeting between Government and governors held in Vientiane, last month.

The government will also mobilize more foreign investors by focusing sectors using a lot of work force so as to create jobs for local people. Social Front ¾ US gives medical aids to Laos United States of America provided a number of lives saving equipment worth US$6,525 to five hospitals.

The hand-over ceremony took place at Ministry of Public Health on 12 March, between Head of Therapy Department of the Ministry of Public Health, Dr. Sommone Phoomsavath received grant assistance from an US consultant in the presence of relevant officials of both sides.The aids were supported by the US Air Force to five central hospitals of Laos for giving first aid to patients.

The aid includes five wheelchairs, five oxygen tanks and 15 mattress and the others. This assistance is to further relation between Laos and United States of America.

¾ Thai People’s Supreme Prosecutors delegation on two–day working visit to Laos Two top officials of the Lao’s Party-State, Mr Thongsing Thammavong, President of National Assembly (NA) and Mr Somsavat Lengsavad, Standing Deputy-Prime Minister, received a courtesy call from a delegation of the Peoples’ Supreme Prosecutors’ of Thailand, led by Mr Chaikasem Nitisiri, President of People’s Supreme Prosecutors of Thailand and Her Royal Highness Princess Bajrakittiyabha, in Vientiane and they were on a two-day working visit to Laos, from 17 to 18 March.

The leading officials of the Lao Party-State expressed their warm welcome to the visitors and they also said that they had contributed to cooperation between the Peoples’ Prosecutors of Laos and Thailand and also fostered closer relations between the two neighbouring countries.

When the two sides met they discussed the need to take appropriate measures to alleviate cross-border crimes and they agreed there is an urgency to this issue as such crimes would have serious repercussions on the socio-economic development of the two economies.

541 ¾ Five youths countries exchange cultures Twenty youths from Thailand, the Republic of Korea, Japan, United States of America and Lao PDR gathered in Vientiane this week to exchange cultures.

The activities started from 17 to 19 March, supported by Service for Peace, a non-benefit organization.

They gathered in Vientiane to join study tour in a number of schools in Vientiane which the first day they helped to paint the Tanmixay Secondary School, in Saythany district, Vientiane.

During three days activities, they have visited a number of tourism site namely Hor Phakeo, Sisaketh temples, That Luang stupa, Patouxay (Victory gate) and other places in Vientiane.They have met Vice Secretary General of Lao Youth Union, Mr Vanna Duangpasith. They gave more than 2 million kip grant aid to the Lao Youth Union.

This is the first time of the youths from four countries visited Laos in cooperation with Lao youths

¾ Sekong water supply plant construction kicked off The Bank of Lao PDR has released US$ 1.2 million loan to the construction of second water supply plant in Sekong province.

The signing ceremony was held last week between the Water Supply Enterprise of Sekong province and a Chinese Construction Company.

New water supply plant with a capacity of 3,000 m3 is located at Beng Village, Lamane district, Sekong province.

Director General of Water Supply Enterprise of Sekong, Mr. Khamsing Southammakosane said that the new water supply plant will supply clean water to 896 households in five villages all around year.

The five villages will benefit from this water supply plant are Ban Nongbong-Huaikhiew, Nonnongva, Honglay, Beng and Phon.The contracted company expected that the construction work will complete within five months after signing contract.Mr. Khamsing said that the local people in 13 villages need water supply for consumption at least 3,000 cubic metre per day from two plants.

¾ Belgium gives four million Euro to health care Improvements were made to the health care systems in two Lao districts, Vangvieng district, Vientiane province and Sepone district, Savannakhet province, because of the four million Euro technical assistance given by Belgium.

542 This was considered to be a success in Lao-Belgium cooperation, according to a report that was read out during a final review workshop on public health cooperation between the two countries in Vientiane on 12 March.

This event was organized by the Ministry of Public Health in cooperation with Belgium Technical Cooperation and the Deputy Minister of Public Health, Prof Dr. Aksavang Vongvichit and 80 officials attended this meeting. Laos-Belgium cooperation on public health project began in 2004 and it is scheduled to end in May 2009.

Over the past five years, the project, based entirely in the Vangvieng and Sepone districts, provided basic health care and trained officials on public health administration.

The most outstanding work of this project was the repair of the Vangvieng hospital and the building of a number of dispensaries in the two provinces.

The project supported the integrated health development in communities, where 30 dispensaries were located and 200,000 people were able to benefit from this project. • Cambodia Social Front

• Comfrel criticises CPP over Rainsy Election monitor Comfrel criticised the stripping of Sam Rainsy's (right) immunity.

ELECTION monitoring NGO Comfrel on Wednesday stated that the stripping of opposition leader Sam Rainsy's parliamentary immunity earlier this year was both controversial and politically motivated.

Sam Rainsy's immunity was removed after he refused in February to pay a US$2,400 fine levied by the National Election Committee for insulting senior members of the ruling Cambodian People's Party while campaigning in last year's general election.

Last month, Prime Minister Hun Sen called for parliament to strip him of his immunity, something the Permanent Committee - whose 12-person membership is entirely composed of CPP lawmakers - did within days. Sam Rainsy subsequently paid the fine, and his immunity was restored last week.Koul Panha, the executive director of Comfrel, told the Post Wednesday that parliamentary immunity should not be removed because of minor mistakes in expressing opinions.Criticism is democratic

The report noted that criticism of political candidates during election campaigns was commonplace in democracies, and said those that criticised should not face penalties.During campaigning in Kratie and Kampong Cham provinces last year, Sam Rainsy told his supporters that the three leaders of the CPP - Chea Sim, Hun Sen and

543 Heng Samrin, who appear together on the party's billboards - had been "stealing the nation".

Yim Sovann, SRP spokesman and lawmaker, said the ruling by the NEC and the Constitutional Council - both of which ruled against Rainsy - was illegitimate. He said the matter was a penal one and should have been ruled on by the courts. He said the fact that the CPP had a majority in the National Assembly meant it should prioritise resolving problems such as unemployment and the financial crisis.

NA denies intimidation claim

But Nguon Nhel, the vice president of the National Assembly and a CPP lawmaker, said that was untrue. He said the suspension was conducted according to due legal process and denied criticisms of political intimidation.

• Khmer Krom released NINETEEN Khmer Krom refugees were released from detention in Bangkok Monday following an intervention from the United Nations High Commissioner for Refugees (UNHCR). Ang Chanrith, head of the Khmer Kampuchea Krom Human Rights Organization, said the asylum seekers, who held refugee documents from the UNHCR, were released after the UN office petitioned Thai officials to recognise their status as legitimate asylum seekers.The group leaves behind in detention seven Khmer Krom who were recent arrivals to Bangkok and had not yet been registered with the UNHCR, he said. Ang Chanrith, who has been working on the case with UN officials in Phnom Penh and Bangkok, said Khmer Krom asylum seekers in Thailand have been experiencing delays in being recognized by the UNHCR, putting them at risk of being rounded up by police. He said all 26 of those detained had fled Vietnam after they feared imprisonment at the hands of authorities there following public demonstrations against limits on their freedom of culture, religion and speech.

Contacted by phone, the UNHCR office in Bangkok said it had a policy of not discussing individual cases. The UNHCR office in Phnom Penh could not be reached for comment. Rights groups and Khmer Krom activists have accused the Vietnamese and Cambodian governments of engaging in a persistent and often violent campaign to stifle the rights and distinct identity of the Khmer ethnic group originating from what is now Vietnam's southern Delta.

• PM warns of riverbank collapse AS the 2009 wet season approaches, Prime Minister Hun Sen has said that authorities in Kandal province should advise riverside residents to remove their homes in anticipation of the seasonal collapse of riverbanks, prompting the opposition to claim the government is shielding licensed sand-dredging operations which are, it says, exacerbating the problem.

544 Kandal Governor Chhun Sirun said that the river collapses were not only a concern in Kien Svay, but were also a frequent occurrence in Muk Kampol and Ksach Kandal districts.

Ly Thuch, second deputy president of the National Committee for Disaster Management, said similarly that people living along the Mekong, Tonle Sap and Bassac rivers were routinely informed by local authorities prior to collapses. But although such collapses are an annual occurrence on the Mekong, Tonle Sap and Bassac rivers, opposition lawmakers say the premier should instead crack down on sand-dredging operations it claims are worsening the problem. Sam Rainsy Party spokesman Yim Sovann said riverbank collapses had become more severe recently as a result of legal and illegal sand-dredging operations in rivers across the country.

Conservation International could not comment about the specifics of river dredging operations, but said that the removal of sand - even of small amounts by local villagers - could force riverbanks to collapse. But Yim Sovann said that it was not enough to issue warnings to villagers while allowing sand-dredging operations to continue, and called on the PM to take more direct responsibility for those displaced by collapses.

In August last year, Veng Sakhon, a secretary of state at the Ministry of Water Resources, told the Post that officials would investigate dozens of potentially illegal sand-dredgers operating on the Mekong. In the same month, local developer Brothers Investment Group (BIG) was also granted permission to dredge the river as part of a $300 million project to make the waterway navigable by larger vessels. At the time, environmentalists criticised the deal, which they said lacked the proper public consultation due for a project of its size.But Mao Hak, director of the Department of Hydrology and River Works at the ministry, said that it was also working hard to prevent the unexpected landslides along the edges of rivers.

• New construction technology now in Cambodia Canadia Tower is one of the new developments using innovative building techniques to tackle Phnom Penh’s floodwaters. Cambodia may be a developing country, but in terms of land use and construction it has developed remarkably well over the past five years.

Companies involved in the sector have been improving their designs and using the most recent technologies, materials, methods and machinery in an effort to boost consumer trust and confidence in their buildings still under construction.

Developers are also investing in the areas where they build to mitigate some of the infrastructural problems that still plague Cambodia, including narrow roads, traffic congestion, a lack of inner-city parking spaces, and an underdeveloped sewage and drainage system that often results in flooding during rainy season.

545 With much of the land in Phnom Penh shaped by river and floodwater ecology, preparing foundations before building poses a unique challenge. Korean company Hanil Engineering and Construction, which is building CamKo City on behalf of developer World City, has used rc pile machines to ensure a solid foundation on which to construct.

Canadia Tower, being built by the Overseas Cambodian Investment Corp to serve as headquarters for the related Canadia Bank, used a bore-piling technique to dig through unstable strata and lay foundation pillars up to 12 metres below the building in solid bedrock. Once the foundations were set, construction began at the lowest basement level, proceeding upwards through the three basement floors to the ground floor. The technique ensures that the three underground levels in the building remain debris- and water-free and that the foundation is solid enough to support the 30 storeys above.

The 32-storey De Castle Royal condominium tower in the Boeung Keng Kang I area of Phnom Penh's Chamkamorn district, which has three storeys underground, uses a different construction technique again, and one that is new to the country.

Using the barrette piling system and slurry wall technique, a pit 45 metres deep was dug and the walls sprayed with bentonite powder to prevent soil collapsing into the hole. Each foundation pillar was set in place using an H-beam core before concrete was poured to cement it in place.

The so-called top-down method of construction was used to build the high-rise superstructure and its sub-basement simultaneously, speeding up the development process. A similar method is being used in the Gold Tower 42 project.

As Cambodia continues to develop and new buildings are erected, the country will continue to benefit from these new construction techniques, machinery and materials introduced by private developers. These latest innovations in construction will ensure buildings go up faster, stronger and safer. They will also ensure that lower levels remain water free, despite Phnom Penh's floodplain ecology. • Brunei

Political Front

• Singapore delegation in Brunei for 14th exchange visit Foreign Affairs Minister George Yeo and a delegation of Singapore ministers and senior civil servants are in Brunei for the 14th Singapore-Brunei Exchange Visit.

The visit started with a welcome dinner on Friday for the Singapore delegation hosted by Brunei's Second Minister for Foreign Affairs and Trade Lim Jock Seng.

546 On Saturday afternoon, the Singapore group had an audience with Sultan Hassanal Bolkiah, in the presence of the Crown Prince and Senior Minister at the Prime Minister's Office, Prince Al-Muhtadee Billah; Brunei Minister of Foreign Affairs and Trade, Prince Mohamed Bolkiah; several ministers and senior officials. Following that, senior officials from both sides met to discuss ways to enhance ties and improve bilateral cooperation. They also exchanged views on the current global economic situation. In addition, a Memorandum of Understanding on Food, Agri-technology, Agriculture, Fisheries and Nature, and Biodiversity Conservation Cooperation was signed between Singapore's Ministry of National Development and Brunei's Ministry of Industry and Primary Resources. The two delegations also played golf and badminton.

Brunei's Minister of Foreign Affairs and Trade, Prince Mohamed Bolkiah, hosted the Singapore delegation to dinner to mark the end of the visit on Saturday night. The Singapore delegation will return to Singapore on Sunday. Strategic Front

• Brunei denies it has dropped claim over Sarawak Brunei has denied that it has dropped its claim on Limbang in Sarawak. It says the issue was not even discussed at last Monday's (March 17) deliberations between the two ocuntries.

Both the Brunei-based papers, The Borneo Bulletin and the Brunei Times yesterday (March 18) quoted Pehin Orang Kaya Pekerma Dewa Dato Seri Setia Awg Lim Jock Seng, minister of foreign affairs and trade II, as saying claims on

Limbang were never discussed during Monday's deliberations between Brunei and Malaysia.He was responding to YB Dato Paduka Hj Puasa bin Orang Kaya Seri Pahlawan Tudin's query on the contents of the "Letter of Exchange" signed between Brunei and Malaysia, which also touched on Brunei's claims over Limbang at the Legislative Council meeting Tuesday (March 17).Pehin Lim said there were certain press reports yesterday (March 18) claiming that Brunei has dropped claims over Limbang.The Sultan of Brunei Darussalam and Malaysian Prime Minister Abdullah Haji Ahmad Badawi held a four-eye meeting at the Istana Nurul Iman on Monday and signed the Exchange of Letters to mark the successful conclusion of negotiations.

The negotiations have been ongoing for many years on outstanding bilateral issues between the two countries with regard to historical, legal and other relevant criteria involving both sides, the reports said.The reports said that both sides noted the agreement of their respective governments on the key elements contained in the Exchange of Letters, which included the final delimitation of maritime boundaries between Brunei

547 Darussalam and Malaysia, the establishment of Commercial Agreement Area (CAA) on oil and gas, the modalities for the final demarcation of the land boundary between Brunei Darussalam and Malaysia and unsuspendable rights ofmaritime access for nationals and residents of Malaysia across Brunei's maritime zones en route to and from their destination in Sarawak, Malaysia provided that Brunei's laws and regulations are observed.In a separate report, the Borneo Bulletin said local media was not allowed into the press conference called by the Malaysian Prime Minister.

Social Front

• Women's role in progression of Islam HER Majesty Raja Isteri Pengiran Anak Hajah Saleha graced the Special Convention for Women yesterday, held to mark Maulidur Rasul celebrations at the International Convention Centre (ICC).

Her Majesty was accompanied by Her Royal Highness Pengiran Isteri Azrinaz Mazhar, Her Royal Highness Princess Hajah Rashidah Sa'adatul Bolkiah, Her Royal Highness Princess Hajah Majeedah Nuurul Bulqiah, Her Royal Highness Princess Hajah Hafizah Sururul Bulqiah, Her Royal Highness Princess 'Azemah Ni'matul Bolkiah, Her Royal Highness Princess Fadzilah Lubabul Bulqiah, Her Royal Highness Princess Hajah Masna and Her Royal Highness Pengiran Anak Isteri Pengiran Anak Hjh Zariah.

Upon arrival, the Royal entourage was greeted by Hjh Zasia Sirin, co-chairperson of the event, as well as other committee members accompanied by a hadrah performance.

The ceremony also featured a special forum entitled "Maturity as a Zikir Nation" by Mohd Farid Ravi Abdullah, an invited speaker from Malaysia.The highlight of the celebration was the announcement of the recipients for the Anugerah Bakti Hijrah Khas Wanita. The award, annually given to selected women since its establishment in 1992, was given in appreciation for the women's active involvement and contribution to society, particularly in religious aspects.Her Majesty presented the awards to two of the four recipients; Datin Hjh Masni Hj Mohd Ali and Pg Hjh Salmah Pg Hj Ismail, while Her Royal Highness Pengiran Isteri Azrinaz Mazhar presented the award to the other two recipients; Pehin Manteri Bini Datin Paduka Hjh Aminah Hj Mohd Yassin and Datin Hajah Salmah Pehin Dato Imam Hj Mokti.

Prior to the end of the ceremony, a dikir marhaban was performed by officers and staff of the Ministry of Religious Affairs, Ministry of Development and members of the Women's Council. The Royal entourage and guests, consisting of female students from secondary schools and colleges, government officers as well as female staff from private agencies and members of women associations, stood up and joined in the dikir recital.After the recital, the Royal entourage toured the exhibition booths, which was featured at the event to provide government institutions the opportunity to disseminate their roles and

548 functions and offer local entrepreneurs the chance to promote their products.The State Mufti Department, Islamic Da'wah Centre and the Language and Literature Bureau were among those at the exhibition featuring their latest publications.A donation box for the Palestinian Humanitarian Fund was also set up at the exhibition for those wishing to contribute to the fund. A contribution was also collected from the sales of booths and space at the exhibition.Yesterday's event marked the 15th year of the convention, jointly organised by the Ministry of Religious Affairs, Ministry of Development and the Women's Council as well as associations under it. The Brunei Times

• Local Islamic bank cause of zakat delay THE delay by local Islamic Bank institution in submitting the zakat to relevant authorities were the main reason for the significantly poor zakat contributions which has prompted the Ministry of Religious Affairs to launch an investigation to the matter, said the Minister of Religious Affairs.

Pehin Jawatan Luar Pekerma Raja Dato Seri Utama Dr Ustaz Hj Awg Mohd Zain Hj Serudin said this during the fifth day of the Legislative Council Meeting yesterday.

His Majesty the Sultan and Yang Di-Pertuan of Brunei Darussalam in his 2007 titah during Aidil Fitri urged authorities to undertake intense research to find out the cause of the $10 million shortfall.

His Majesty referred to the recent statistics from relevant authorities which have shown the amount of tithe or zakat collected last year had dropped dramatically by $10 million from that of the previous year. Only $8.8 million was collected last year as compared to the $18.9 million collected in 2005.The Minister explained that the delay caused the zakat to be forwarded to next year thus the combination of both saw an excess for the next year while it saw poor contribution for this year. Dato Paduka Hj Puasa Orang Kaya Seri Pahlawan Tudin raised the issue of halal-haram as several shops which carries packaged food products are being queried for their halal label as it is sold to members of the public.In response the Minister said that strict restriction has been imposed for the importation of raw meat while tin food products are in the process of following similar direction.He advised shopkeeper to separate non-halal food products from the halal brands, as a process is being devised and steps taken to ensure that the halal labels are not being abused. "Talks are currently on the way between neighbouring country on how to identify the halal brand which could be used between us," said the Minister.Other issues that were raised during the meeting and was being considered by the Ministry of Religious Affairs included raising the rates of the government Haj Pilgrimage, obtaining visa for Haj Pilgrimage, building up new religious schools and mosques as well as clarifications on new converts who have missed attending the introductory courses to Islam.

549 Business and Politics in Muslim World

India

Sadia Khanum

14th March 2009 to 20th March 2009

Presentation date: 25th March 2009

Political front:

• Government on your doorstep is BJP slogan • No alliance with other parties: Mayawati • Lalu‐Paswan seat sharing pact in Bihar • Congress humiliated by best friend Lalu • FIR against Varun for communal speech • Battlefield Maharashtra for Pawar, Modi • Varun communalising situation: Congress • Seeking Congress support a post‐poll issue: Yechury • Communalism, casteism nation’s foes: Manmohan • Delhi HC grants anticipatory bail to Varun Gandhi • Meghalaya brought under Central rule • No time for seat‐sharing talks with SP: Congress • Congress can support us: Karat • RJD may get more seats in Jharkhand • BJP distances itself from remarks • Third Front's "consensus" PM candidate after polls: Deve Gowda

Mumbai Attacks and Aftermath:

• India’s 26/11 response packed with primary documents • Tangible action by Pakistan called for • Pakistan’s FIA taking close look at Indian response

Domestic Situation:

• Army orders probe into Purohit's `activities'

Economic Front:

• India may slip into deflation by April: D&B • IMF sees India's growth rate slowing dramatically • Downturn till May 2010: Assocham • 2.6 billion WB loan for India soon

550 • India, S Korea to ink FTA soon • Tatas’ total debt to cross Rs 1 trillion • GDP growth to stabilise at 7% • Inflation plunges to 30‐year low

Geo‐strategic developments:

• India's MiG‐29s are safe, says Air Force chief • Navy has ambitious warship construction plans • ISRO gearing up to put Israeli satellite in orbit

Kashmir:

• AFSPA to end during my Govt's tenure: Omar

Social front:

• Human rights violation maximum in UP, Delhi: Survey • BJP activists attack 'Christian' Chaplin statue • 'India short of 10 lakh docs' • Make leaders of agitations pay for vandalism: SC • India says Gandhi items belong to Trust, auction is illegal

Foreign Relations:

• No military solution to Tamil issue in Sri Lanka: Mukherjee • Sino‐Indian border tranquil: Menon • People of Pakistan love democracy: Pranab • U.S. wants India to de‐escalate on border with Pakistan • U.S. keen on ‘very positive’ ties with India

Political front:

Government on your doorstep is BJP slogan

Unveiling its new vision for an India governed with the help of the Internet and information technology, the Bharatiya Janata Party on Saturday promised to bring its administration to people’s doorstep. Mr. Advani said national security was a prime concern and if the National Democratic Alliance were to form a government after the Lok Sabha election, work would begin on a project to give a multipurpose national identity card to every citizen. This was especially important as the number of illegal Bangladeshi immigrants in India ran into crores, he said. Mr. Singh pointed out that, among political parties, the BJP was the first to have its own website. The IT vision document promises Internet-enabled education in all schools, broadband connectivity in all towns and villages, creation of IT-enabled jobs, free mobile telephone for every poor family below the poverty line, telemedicine through internet connections in primary health centres and a

551 Rs. 10,000 laptop for 10 million students with a loan to go with it. But, above all, the party promised an e-governance plan that would effectively connect the government to every panchayat and citizen.Party leaders L.K. Advani and Rajnath Singh unveiled the party’s ‘IT vision document’ and launched its refurbished website. The slogan is: ‘Sashan janta ke dwar’ government on people’s doorstep.

No alliance with other parties: Mayawati The Bahujan Samaj Party (BSP) will not form an alliance with any other political party for the general elections this time, BSP supremo and Uttar Pradesh chief minister Mayawati said on Sunday. "This time the Bahujan Samaj Party will fight the elections on its own. It will not align with any other political party," Mayawati told reporters at a function here on the birth anniversary of BSP founder Kanshi Ram. "BSP believes in doing much and talking less... we hope to get good results in these elections," she added.

Lalu­Paswan seat sharing pact in Bihar In a joint press conference, RJD chief Lalu Prasad Yadav and LJP leader Ramvilas Paswan announced their seat‐sharing arrangement for Lok Sabha polls in Bihar. The RJD will contest 25 seats, and the LJP will contest 12 out of the 40 seats. Lalu Prasad said three seats have been left for the Congress, “We’re fighting to form a secular government,” Lalu told reporters. “We’re with the UPA and will remain with the UPA,” he added. Lalu also said both parties would fight together in Jharkhand. The agreement marks a major concession on Lalu's part, as well as a confirmation that he is finding himself on a weak turf. Last time, Paswan's LJP contested 8 seats losing half of them. But due to the changed political situation with Nitish Kumar‐led NDA consolidating its political gains, Lalu seems to have been forced, going by the version of LJP sources, to acquiesce in the terms set by Paswan. Interestingly, no Congress leader was present at the press conference. When asked about the absence of Congress leaders, the railway minister said "We have not called them to the press conference." Asked whether Congress was hurt, the railway minister said "My brother in law (Sadhu Yadav) is also angry." Paswan said the matter of how many seats Congress will get was between RJD and Congress. In the last elections, the three parties RJD, Congress and LJP had contested under a pre‐poll agreement in which CPI and NCP were also a part. CPI is now no longer with the UPA and NCP has already announced that it would contest 14 seats. Of the four constituencies from where it had contested in 2004, Congress had won Aurangabad, Madhubani and Sasaram seats. During the seat sharing talks with LJP, Prasad was under tremendous pressure from its MPs as well as senior leaders not to contest less than 24 seats, two more than what it had won last time. The tussle for seats was mainly between Prasad, who wanted 26 seats, and Paswan, who had threatened to go it alone if his party was not given 16 seats, double of the 8 it contested last time. This time Congress had sought six seats.

552 Congress humiliated by best friend Lalu After BJP, it was Congress's turn to scream betrayal on Tuesday. The party was stunned when its partners ‐ railway minister and RJD chief Lalu Prasad and steel minister and LJP chief Ramvilas Paswan ‐ did a Naveen Patnaik to it, parcelling out 37 of the 40 Lok Sabha seats in Bihar among them, humiliating the lead player of the ruling coalition with a measly three. The ruthless hand dealt by Lalu, who fancied himself as the oldest and all‐weather ally of Congress, marked a blow to Congress's plan to re‐take power at the Centre and could potentially lead to the reconfiguration of UPA as well as Third Front's expansion, besides starkly bringing out the RJD boss's vulnerability on his home turf. In contrast, Paswan was a clear winner, forcing Lalu to acquiesce to his tough terms for a seat‐sharing pact. The LJP, which had contested eight seats in 2004 and lost four, has walked away with 12 seats. In the last Lok Sabha election, the Lalu‐ Paswan‐Congress alliance had swept 29 of the 40 seats from the state, derailing the calculations of NDA which was banking on Bihar for a bagful of seats. Congress, which was happy playing third fiddle the last time, had upped its ante this time. Feeling more confident of its chances and because of the widespread perception about Lalu's diminished clout, the party was insisting on improving its share from the measly four it had to do with the last time. Naturally, the meagre three seats left for it came as a shocker. Lalu's cold‐blooded pronouncement that the shares of partners were worked out on the basis of each's strength as determined by the number of seats they won last time, when he used a different playbook for Paswan, could have hardly salved the hurt. Paswan's teaming up with Lalu must have added insult to the injury inflicted on Congress by the RJD boss. Congress had to take up cudgels for the steel minister whenever he was at the receiving end of Lalu's strongarm politics. Writhing in embarrassment, Congress launched an attack on Lalu, calling the deal unacceptable. It made its intent known by playing host to the railway minister's brother‐in‐law, Sadhu Yadav, when he revolted against being pushed out of the new RJD‐LJP equation. "Three seats in Bihar are not acceptable to us; the matter will be taken up with our allies," party spokesperson Jayanthi Natarajan told reporters, rejecting the call for "sacrifice for secular unity". Senior party leader Sushil Kumar Shinde also talked about anger among the cadre in Bihar. But the deal also served to validate the widespread and growing perception on Lalu being up against a resurgent challenge from Nitish Kumar‐led NDA. He conceded more seats for the sake of Paswan votes, over whom the LJP leader has got a lock, and can transfer them at will. Considering that Paswans make up 5% of the electorate, the extra yard travelled by the RJD strongman may be seen as only pointing to the ground he had lost. The steel minister had started off with 16 seats, but that was more of a bargaining ploy rather than the bottomline. His supporters were jubilant over the outcome. The Bihar shocker was the first stumble for the UPA which seemed to be ahead of the rival combine, the NDA, in stitching up alliances. Coming after the failure to wrap up an alliance with Samajwadi Party in Uttar Pradesh, it has not just exposed the geographical limitations of the party; it may also weaken its hand in negotiations with allies like Jharkhand Mukti Morcha and those in Tamil Nadu.

553 FIR against Varun for communal speech

BJP nominee from Pilibhit Varun Gandhi's debut in electoral politics has seriously embarrassed the party and could well invite a serious rap on his knuckles if the charge of his making a communally inflammatory speech deriding Muslims is proved. The Election Commission left no room for the son of late Sanjay Gandhi and BJP leader Maneka Gandhi as it asked UP chief electoral officer Anuj Bishnoi to file an FIR against Varun under sections 153A (inciting communal hatred) and 188 (unlawful assembly) of the Indian Penal Code and section 125 of the Representative of People's Act. Soon after, station officer of Barkhera in Lakhimpur district registered an FIR against the young leader who is standing from a seat nurtured by his mother. EC has separately issued notice to Varun and BJP, transferred two officials and suspended another two. The charge of inciting enemity between communities can result in three years in jail a sentence of two years can bar a person from contesting polls. Though Varun claimed he stood by secular values, invoked his Nehru‐Gandhi lineage and alleged the CD has been tampered with, EC sources said prima facie the CD did not look tampered. Two of BJP's Muslim leaders Shahnawaz Hussain and Mukhtar Abbas Naqvi, both contesting Lok Sabha polls severely criticised Varun for his offensive remarks. Hussain demanded an "unconditional apology" from Varun. Seizing an opportunity, Congress threatened to file a legal case against him in EC. Senior leader Digvijay Singh in his complaint to the EC said the speech was "highly deplorable and deserves proper action". This is the third FIR against Varun the constituency that Maneka has vacated for him after deciding to move to neighbouring Aonla. Under Section 153A of IPC, a person can be held guilty for promoting enmity between different groups on ground of religion, race, place of birth, residence, language, etc, and doing acts prejudicial to maintenance of harmony. A person held guilty can be imprisoned for three years. Section 125 of RPA is equally stringent. It says that any person who promotes enmity between classes on grounds of religion, race, caste, community or language, feelings of hatred shall be punishable with imprisonment for a term which may extend to three years, or with fine, or with both. According to RPA, any person convicted and sentenced to imprisonment for over two years shall be disqualified from contesting elections.

Battlefield Maharashtra for Pawar, Modi

A war of words has already broken out between the fiery BJP campaigner Mr Narendra Modi and Maharashtra’s most seasoned politician Mr Sharad Pawar, as both these leaders have hit the campaign trail quite in earnest and well before the political parties have officially named their candidates for up coming Parliament elections next month. The campaigning for Parliament elections as their initial utterances suggest is certain to escalate into a no holds barred mud slinging match between these two leaders. The Gujarat chief minister, who is his party’s campaign chief for the state chose Pune, Mr Pawar’s home district, to remind the Prime Ministerial aspirant that the Congress had virtually snuffed his ambition last year when it purposely installed a Maharashtrian ~ Mrs Pratibha Patil as President which left little or no room for another leader from the state to become a Prime Minister using the same regional

554 card. Mr Modi wondered how the experienced politician has yet not reali\sed that he has been foxed by the Congress. Mr Modi has so far addressed over six major rallies but Shiv Sena leaders were neither seen nor heard at any of these, although the seat sharing pact between BJP and Shiv Sena has been announced. The Nationalist Congress Party president, Mr Pawar, however, hit back at another rally in western part of the state, asking voters not to give credence to Mr Modi’s claims about his Gujarat’s progress. He said: “We valued Gujarat of Mahatma Gandhi and Sardar Patel" and not of a “frontline communalist.” At an earlier rally in Thane, Mr Modi had invited the NCP president to visit his state and understand the progress especially in agriculture sector which had been traditionally ignored by the business community of the state. The NCP president is a much revered politician in the state and has always been prime campaigner for the Congress‐NCP alliance but he had in previous elections seldom encountered bitter criticism. For him to tackle the present BJP leaders in the state, like President Mr Nitin Gadkari or general secretary Mr Gopintah Munde, has been as easy as dealing with flickers of dissidence within his NCP’s ranks. But the Congress‐NCP alliance a tougher rival campaigner in Gujarat CM who, if BJP‐Shiv Sena alliance truly project themselves as a strong Hindutva allies, would come close enough to fill the void left by aging Shiv Sena chief Mr Bal Thackeray. Mr Pawar had already addressed over 40 election meetings in his new Madha constituency. At every poll he is always in demand by both the Congress and NCP candidates. His campaigning skills will now be tested in a bigger battle as the BJP in Maharashtra is depending a lot on Mr Modi to attract voters. The Congress and Shiv Sena in the state do not possess such crowd pullers. The Gujarat CM who addressed a well‐attended rally in Pune cited a report by the Comptroller and Auditor General of India to allege that the Union government had failed to account for Rs 50,000 crore that had gone missing from its treasury. The Gujarat CM has asked the prime minister to giver proper account of the missing funds to the voters. He wondered whether the UPA would clandestinely spend it on its election campaign.

Varun communalising situation: Congress

The alleged communal remarks of the BJP’s Pilibhit candidate Varun Gandhi in his constituency have drawn criticism from political parties. Terming them “highly deplorable,” the Congress said it was preparing to lodge a formal complaint with the Election Commission. “The kind of statement Varun Gandhi has come out with is highly deplorable and deserves proper action. He has not only communalised the situation but [also] used abusive words against the minorities,” All India Congress Committee general secretary Digvijay Singh told journalists here after leading a party delegation to the Commission. The Congress also took note of the young BJP leader’s statements “belittling” Mahatma Gandhi, Mr. Singh said. It was obtaining the CDs of Mr. Gandhi’s speeches for legal examination. Once that was done, “we will put up a complaint formally.” Asked about BJP leader Mukhtar Abbas Naqvi’s statement that Mr. Gandhi’s remarks came owing to his “past Congress connection,” Mr. Singh retorted, “What rubbish.” “Ever since L.K. Advani took out the Ram Rath Yatra, he has totally communalised the Indian polity. We have seen communal riots. Every time election comes, Ram mandir becomes an issue,” he said. Congress spokesperson Jayanthi Natarajan told journalists that Mr. Gandhi’s remarks were “inflammatory” and “provocative.” To a query whether the Congress filing a complaint against Mr. Gandhi meant an end of his relationship with party president Sonia Gandhi, she said, “This

555 has no connection with any relationship.” “The fact is that the BJP candidate made provocative statements as shown in news reports. As a political party, we had to bring it to the notice of the Election Commission,” she said. In Lucknow, Uttar Pradesh Chief Minister Mayawati said: “The speech by Mr. Gandhi against the minorities is a planned conspiracy to spoil the law and order situation in the State and the Election Commission should take a stern view and initiate proper action in this connection.” The BJP candidate unsuccessfully tried to vitiate the atmosphere but the State government was committed to maintaining communal harmony and it would not tolerate any such attempt, she warned in a release. The BSP chief claimed that Mr. Gandhi’s utterances only indicated the sentiments and ideology of his party towards Muslims and exposed its real face. “Perturbed at the waning public support, the BJP leaders are issuing irresponsible statements to divide the people on religious lines,” Ms. Mayawati said, adding she warned last month itself that the BJP and other communal parties would make an attempt to create communal tension before the Lok Sabha polls. Samajwadi Party chief Mulayam Singh dismissed the controversy surrounding Mr. Gandhi’s “hate” speech, saying “such” people wanted only attention. “I don’t want to say anything on Arun...Varun. Leave it. Why do you [media] give importance to him... ,” he told journalists. Asked whether he was aware of what Mr. Gandhi said, he said, “Leave the topic.” SP general secretary Amar Singh said Mr. Gandhi had not said anything new. “He has only uttered what Mr. Advani had been saying all the time.”RJD president and Railway Minister Lalu Prasad said Mr. Gandhi had “only spoken the language of the BJP and the sangh parivar” and that party was again trying to rake up Hindu-Muslim tensions. He said Mr. Advani could never become Prime Minister. Lok Jan Shakti Party president and Union Minister Ram Vilas Paswan demanded that the BJP candidate be disqualified for “spreading hatred.” Mr. Gandhi, however, denied making any anti-Muslim comment. “I strongly refute the charge of making any communal or divisive statements as part of my election campaign. In this climate of terrorism, I have spoken only about standing firm against anti-national and anti-social forces that threaten this nation,” he said in a statement.“I categorically reiterate my family’s and my own unwavering commitment to the ideals of secularism.” Mr. Gandhi invoked his family legacy to convey the message that he stood for service and sacrifice for the nation and working for a peaceful and prosperous India. His “frustrated electoral rivals” were making “a crude and vicious attempt” to malign him by doctoring his speech. “I unequivocally state that that [what is contained in the CD] is neither my voice nor my language.“These are purportedly two weeks old. None of what I actually said was either intended or taken to be communal, which is testified to by the fact that in this intervening period there has been no communal tension or untoward incident,” he said.He was confident that the authorities would get to the bottom of this conspiracy and “severely punish those who malign and thwart a young person willing and able to contribute to the process of building a strong yet just, tolerant and inclusive society,” Mr. Gandhi said.

Seeking Congress support a post-poll issue: Yechury

The Communist Party of India (Marxist) will consider seeking the support of other political parties, including the Congress, to the proposed alternative after voters deliver their verdict in the next elections. CPI (M) Polit Bureau member Sitaram Yechury said on Thursday the party’s central committee had resolved to work for the formation of a non-Congress and non-BJP alternative at the Centre and efforts were underway in that direction. “We are fighting a battle and no soldier will entertain questions about losing it,” he said, answering queries on the course that would be adopted if the alternative did not get the required majority. Mr. Yechury said he was ‘not aware’ when asked about CPI (M) general secretary Prakash Karat’s reported remarks that the party would not hesitate to seek the support of the Congress for the third alternative. “I am here at present and I am not aware of what statement he gave,” he said. The senior CPI (M) leader said there were no problems with the Bahujan Samaj Party and said BSP chief Mayawati had announced her intention to support a non-Congress and non-BJP front after the elections.

556 Recalling that the coalitions including the United Front, the National Democratic Alliance and the United Progressive Alliance were all formed post elections, he hoped that the alternative supported by the Left parties would come to power as the people were seeking a change in the policies. He replied in the negative when asked about senior CPI (M) leader Jyoti Basu’s reported claim that the alternative would not come to power. Mr. Yechury demanded that the BJP withdraw the candidature of Varun Gandhi, who was facing charges of making inflammatory speeches, if it had some respect for “political morality” and secular/democratic values.

Communalism, casteism nation’s foes: Manmohan

Prime Minister Manmohan Singh on Thursday said communalism and casteism were enemies of the country and everyone had to contribute in the fight against the twin evils. He was reacting to a question on BJP Pilibhit candidate Varun Gandhi’s alleged inflammatory remarks against Muslims during his campaign. This was Dr. Singh’s first informal interaction with the media after his heart surgery. The Prime Minister said that while Mr. Varun Gandhi had clarified that he had not made such remarks, if they had been, “it is unfortunate.” Earlier Dr. Singh attended the Defence Investiture Ceremony at the Rashtrapati Bhavan. To a question, he said differences among the United Progressive Alliance partners would be sorted out.

Delhi HC grants anticipatory bail to Varun Gandhi

The Delhi High Court on Friday granted anticipatory bail to BJP Lok Sabha candidate Varun Gandhi restraining the police from arresting him till the Allahabad High Court decides on his petition in connection with his alleged communal speeches. Justice Reva Khetrapal granted Varun's plea, while rejecting the submission of Delhi Police that the court had no jurisdiction to entertain the petition as the FIR against him was lodged in Uttar Pradesh. Varun, in his petition before the Allahabad High Court, sought quashing of the FIR registered against him in Philibit for his alleged inflammatory and communal speeches. The Court granted the bail and asked the politician to pay a personal surety of Rs 50,000. The Court issued notices to Delhi and Uttar Pradesh governments on Varun's plea and listed the matter for further hearing on the question of jurisdiction on March 27. Apprehending arrest for allegedly making communal speeches during his election campaign in Uttar Pradesh, the BJP candidate had yesterday moved the Delhi High Court for anticipatory bail alleging he has been falsely implicated. Varun approached the court as there is no provision of anticipatory bail in Uttar Pradesh where he has been booked under Sections 153 A (promoting enmity between different groups on ground of religion) and 188 (disobedience to order duly promulgated by a public servant) of the Indian Penal Code and Section 125 of the Representation of the People Act. The 29-year-old politician, making his electoral debut, had pleaded that the police are restrained from taking any action against him on the basis of the FIR lodged in Uttar Pradesh. The politician contended in his petition he is being falsely implicated as he is likely candidate from Pilibihit constituency and the FIR is an attempt to derail his campaign for the upcoming elections.

Meghalaya brought under Central rule

Meghalaya was brought under President’s rule on Thursday and the Assembly kept under suspended animation. According to a Rashtrapati Bhavan spokesperson here, President Pratibha Devisingh Patil approved the decision taken by the Union Cabinet on Wednesday. “The President has signed the proclamation for imposing Central rule in Meghalaya,” the spokesperson said. The Cabinet had agreed with the recommendation sent in his report by Governor R.S. Mooshahary who said that Meghalaya was undergoing a spell of political uncertainty and

557 instability and the Constitutional machinery had broken down. Senior NCP leader P.A. Sangma, the architect of the Meghalaya Progressive Alliance (MPA), rushed to the capital from Shillong with seven other alliance leaders. He said the alliance would move a petition in the Supreme Court on Friday challenging the Centre’s decision. Briefing mediapersons, Mr. Sangma described the government’s decision as “unconstitutional and unethical,” tantamount to defacing the Constitution.He announced plans to launch a “non-stop” agitation of all non-Congress parties in the North-East against the Centre’s move.

No time for seat-sharing talks with SP: Congress

The Uttar Pradesh Congress Committee (UPCC) president, Rita Bahuguna, Joshi on Wednesday ruled out a seat-sharing arrangement with the Samajwadi Party, stating that there was no time for negotiations now. However, she clarified that the Congress would field candidates only in constituencies where it was certain of coming at least third. “Congress president Sonia Gandhi has asked us to pick candidates carefully so that there is no division of the secular vote in the State,” Ms. Joshi said at a press briefing here.

Congress can support us: Karat

In a reversal of roles, the CPI(M) on Wednesday said the Congress could help it to form an alternative secular government after the Lok Sabha elections. “Well, we can do business with them [Congress]. We can ask them to support an alternative secular government. It is possible,” CPI(M) general secretary Prakash Karat told NDTV. Asked whether he considered the Congress a political untouchable, Mr. Karat said it was not a question of untouchability. “We will do business with all parties but that business will be circumscribed by the nature of the mandate.” On whether he agreed with CPI(M) patriarch Jyoti Basu’s opinion that the decision not to join the United Front government in 1996 was a historic blunder, Mr. Karat said the party discussed the issue in its 1998 Congress and felt it was a correct decision not to join the government at that time.

RJD may get more seats in Jharkhand

Though the Congress and the Jharkhand Mukti Morcha had agreed on seat-sharing for the Lok Sabha elections in Jharkhand there were indications on Wednesday that the final word had still not been said on it. Accommodating the Rashtriya Janata Dal, which had now been allotted two seats, further in the State might be part of ongoing efforts to salvage the alliance in Bihar. The agreement between the RJD and Lok Jan Shakti Party of Ram Vilas Paswan in Bihar on Tuesday gave only three seats for the Congress.Mr. Paswan, at a separate press conference, said his party would contest six seats in Jharkhand if the UPA arrangement did not work out in the State.

BJP distances itself from remarks

The BJP has dissociated itself from the alleged communal comments of its Pilibhit candidate Varun Gandhi, but left the action to be taken, if any, to the Election Commission. “The BJP disapproves of and dissociates itself with the comments attributed to Varun Gandhi,” party spokesperson Ravi Shankar Prasad said on Wednesday. Asked whether the party was thinking of cancelling the allotment of ticket to Mr. Gandhi, he replied in the negative. “Mr. Gandhi has said that the tapes of his election speeches were doctored.” Other party leaders indicated that the party would first hear the tapes and then decide. It was pointed out that Mr. Gandhi had met senior RSS

558 leaders recently and tried to get close to them. Janata Dal (United) leader and Bihar Chief Minister Nitish Kumar has reportedly criticised Mr. Gandhi’s “communal” speech.

Third Front's "consensus" PM candidate after polls: Deve Gowda

Former Prime Minister H D Deve Gowda, a key force behind cobbling up of the Third Front, said today the new grouping would come out with a "consensus" Prime Ministerial candidate once the Lok Sabha election results are out. The JDS supremo reiterated that the Third Front is not projecting any leader as its Prime Ministerial candidate before the elections. "Once election results come out, we are going to sit across the table and work out a consensus candidate", he told reporters here. Gowda indicated that the Third Front has shelved plans to come out with a national policy document to avoid possible conflict with manifestos of individual parties in the grouping. Instead, similar to what NDA and the UPA did after their governments came into being in 1999 and 2004, respectively, the Third Front would come out with its common minimum programme after the Lok Sabha elections, he said.

Mumbai Attacks and Aftermath:

India’s 26/11 response packed with primary documents

India’s response to a Pakistani questionnaire on November’s attacks in Mumbai runs to over 400 pages almost six times as long as a dossier of evidence released in January. Prepared in response to 30 investigation-related queries prepared by Pakistan’s Federal Investigation Agency, India’s textual response runs to just a few pages and follows the contours of details published earlier this week in The Hindu. However, the document contains voluminous appendices, which include five compact discs and over 400 pages of primary documentation. Bar a copy of arrested Lashkar terrorist Mohammad Ajmal Amir’s confessional statement to a Mumbai judge a document that India says can only be obtained through legal processes Pakistani investigators have been given every primary investigative document available with the Mumbai police. Most significant among them, from the point of view of Pakistan’s Federal Investigation Agency, are compact disks containing the conversations between the Lashkar fidayeen and their controllers in Pakistan. Rather than provide a transcript, India has chosen to hand over full audio in the hope the FIA will match the voices with those of Lashkar commanders held by Pakistan. In addition, the appendices to India’s response contains a detailed forensic analysis of the Thuraya satellite phone recovered from the terrorists, which runs into over a hundred pages. The response also contains an appendix detailing the call data records of the mobile phones used by the terrorists during the assault. Electronic headers of an e-mail sent by the Lashkar, claiming responsibility for the attack on behalf of a fictitious group have also been provided. Delivered to the television station India TV, the e-mail has been established to have been sent by the Lashkar using a hacked Moscow- registered server. Digital maps and data obtained from the Global Position System units used by the terrorists are also provided in appendices to the response. Pakistan’s queries on batteries used to power the GPS sets have been met with a detailed list of the internal and external batteries found by the Mumbai police. India’s response also provides a wealth of information on the perpetrators themselves. Four compact discs of closed-circuit video tape are annexed to the response, which will allow FIA investigators to gain a sense of the actual modalities of the attack. Photographs of nine of the 10 perpetrators are also attached, with a note stating that one body was too badly mutilated during the fighting to enable a clear facial image to be obtained. Tailoring labels on the perpetrators’ clothes, as requested by Pakistan, as well as a Mumbai police documentation of material recovered from the terrorists, are contained in the annexures. No effort

559 has been made to conceal gaps in the forensic trail. For example, India’s response contains the fingerprints of only eight of the 10 terrorists involved in the Mumbai attack. Two bodies, the response states, were too badly burned for fingerprints to be recovered. However, one full annexure is devoted to the DNA profiles of the terrorists, which the FIA will be able to match with their next-of-kin in Pakistan. Mumbai police forensic experts were also unable to recover fingerprints from the weapons used by the terrorists, because of contamination during their recovery after their fire-engagements with the National Security Guard. But the response does contain the details of a fingerprint recovered from the hijacked fishing boat used by the terrorists to land in Mumbai. In addition, the appendices include photographs of the weapons used by the terrorists and engravings on an outboard engine used to power a dinghy used by one group of terrorists. Although India’s response avoids polemical language, it does rebut two un-numbered queries added to the end of the 30-point questionnaire drafted by FIA detectives. Pakistan had asked for details on the death of Maharashtra Anti-Terrorism Squad chief Hemant Karkare, linking it to an ongoing investigation of the Hindutva terror group Abhinav Bharat and the firebombing of the Samjhauta Express. In response, India has made available testimony from Mumbai police officer Arun Jhadhav (spelt Jugdev in Pakistan’s questionnaire), which records in minute details of the firefight which led to Mr. Karkare’s death. India’s response flatly rejects claims that Mr. Karkare’s death was linked either to the ongoing trial of Lieutenant-Colonel Prasad Purohit for his alleged role in bombing a mosque in Malegaon, or the Samjhauta Express investigation. Perhaps the only sharp words in India’s response to the questionnaire have been made in response to a second un-numbered claim, which asked for details of “linkages between a diamond merchant firm of Surat and some Hindus in Pakistan [and] alleged sponsoring of the Malegaon blast by the diamond merchant.” India’s response dismisses the claimed linkage as a “figment of imagination.”

Tangible action by Pakistan called for

External Affairs Minister Pranab Mukherjee on Saturday said he expected Islamabad to follow up on its commitment with “tangible action.” India on Friday handed over to Pakistan more evidence regarding the Mumbai terror attacks. “Words and commitments should be followed by tangible action,” Mr. Mukherjee told journalists here to a question whether he was satisfied with Pakistan’s handling of the investigation. India had been demanding that Pakistan dismantle terror infrastructure on its soil, hand over fugitives under the Indian law and bring the perpetrators of the Mumbai terror strikes to justice, Mr. Mukherjee pointed out. “It is not a question about objective satisfaction or dissatisfaction. It is a question of certain hard facts.” Right from the beginning, during his conversation with his Pakistani counterpart Shah Mahmood Qureshi, Mr. Mukherjee had said India wanted the infrastructure available to terrorists in Pakistan dismantled. “The evidence of dismantling of terror facilities should be shared not only with India but also with the international community.”

Pakistan’s FIA taking close look at Indian response

Pakistan’s Federal Investigation Agency is said to be closely examining the 400-page Indian response to its questions on the Mumbai attack and has obtained an additional two days remand for three suspects in its custody to question them in the light of the additional material.Unidentified officials of the Interior Ministry were quoted by several Pakistani newspapers expressing their “dissatisfaction” at the information from New Delhi to the FIA’s 30 questions, and describing it as “irrelevant” and “away from the target.” These sentiments were apparently expressed following a meeting of Interior officials at which the Indian response was discussed. Interior Ministry head Rehman Malik, Secretary Kamal Shah and the FIA Director-

560 General were in the meeting along with other officials. But those familiar with the investigation said the meeting had only noted that India had not provided replies to four or five of the 30 questions. One unanswered question, according to a source, pertains to the details of the local SIM cards that the Mumbai attackers had obtained. Also unanswered is a question about how the attackers refuelled on their sea journey to the Mumbai coast. India has also not provided the DNA samples of two of the dead attackers. With regard to the FIA’s request for a copy of the confessional statement of Mohammad Ajmal Amir, the surviving gunman, to a Mumbai magistrate, India has said that this can be obtained only through a legal process. The FIA team, the source said, was taking the voluminous Indian response “very seriously” and was going throughall the material that has been included in it “minutely.” On Tuesday, an anti-terror court judge granted FIA’s request for two extra days remand for three Lashkar-e-Taiba operatives who are in its custody for their suspected involvement in the Mumbai attacks. The maximum permissible police remand under Pakistan’s anti-terrorism law is 30 days, which ended on Tuesday, but the investigators asked for an extension in order to question the three suspects further using the additional information from India. The three are Zaki-ur-Rehman Lakhvi, Zarar Shah and Mazhar Iqbal alias Abu al-Qama. The judge, who held the proceedings in the high- security Adiala Jail in Rawalpindi, sent the fourth suspect, Hamad Amin Sadiq, to judicial custody for 14 days. He will be held at Adiala Jail.Geo TV was reporting on Wednesday that the FIA would move the court for an additional seven days remand of the suspects on Friday.

Domestic Situation:

Army orders probe into Purohit's `activities' The army has ordered a three‐member panel to conduct a departmental inquiry into the "activities'' of Lt Col Prasad Purohit, arrested by the ATS for his alleged involvement in the September 2008 Malegaon bomb blast case. "An officer of the rank of brigadier has been asked to preside over the inquiry,'' a defence department statement stated on Tuesday. "The inquiry (not a court martial) will be like an internal audit to identify lapses in the existing system that will enable the authorities to institute preventive measures.'' The inquiry will run concurrent to the probe under way and custody of Purohit has not been sought. "The time, place and date for commencement of inquiry has not yet been fixed,'' said a Southern Command official."Witnesses could be cross‐questioned by Purohit, which is the army procedure.''

Economic Front:

India may slip into deflation by April: D&B India may go into deflation by the beginning of April this year due to weak consumption demand and a higher base effect, research firm Dun & Bradstreet said on Sunday. "There will be negative inflation for a few weeks in the first quarter of next fiscal, driven largely by higher base effect but we do not expect a pronounced deflationary trend in the economy," Dun and Bradstreet Chief Operating Officer Kaushal Sampat said. Deflation is a general decline in prices, that is often caused by a reduction in the supply of money or credit. The deflationary phase, wherein there is a decrease in general price level and demand conditions drop significantly are likely to last only for a few weeks as the recent fiscal as well as monetary measures of the government is likely to

561 boost demand. "Consumption demand is expected to receive a boost once the lagged effects of the aggressive policy responses by the Government and the RBI start unfolding," Sampat added. Inflation fell to more than six‐year low of 2.43% for the week ended February 28 mainly on account of fall in prices of manufactured products and some food items. The wholesale price index stood at 6.21% during the corresponding week a year ago.

IMF sees India's growth rate slowing dramatically India's economy is slowing dramatically and uncertainty surrounding the outlook is unusually large, the International Monetary Fund Financial crisis said. The IMF forecast that India's gross domestic product growth would slow to 6.3% in the 2008‐2009 fiscal year, ending in March, and to 5.3% the following year. That would be well below the 9% growth rate in the 2007‐2008 year. "Policy measures to stimulate the economy and a good harvest should support domestic demand," the IMF said. "The uncertainty surrounding the forecast is unusually large, with significant downside risks. The main upside risk stems from a larger‐than‐anticipated impact of the stimulus measures that the authorities have already implemented." The Fund cautioned that India's debt as a percentage of GDP was already high, so a big expansion of the deficit could raise concerns about fiscal sustainability. Any additional stimulus should be focused on "high‐ quality infrastructure and poverty‐related spending" or to recapitalize banks if needed. The IMF said given the budget constraints, monetary and structural policies would have to do the heavy lifting. But directors were split on whether there was scope for more interest rate reductions or if a wait‐and‐see approach was preferable. They supported India's flexible exchange rate policy, and said currency market intervention "should be consistent with the goal of ensuring sufficient domestic liquidity." IMF staff concluded that India's exchange rate appeared to be close to its equilibrium level.

Downturn till May 2010: Assocham

The corporate sector expects the period of downturn in the Indian economy will continue till May 2010 before bouncing back in response to the fiscal and monetary policy stimulus and abatement of recession in the international economy, an Assocham Business Barometer (ABB) survey of 237 CEOs has revealed. In the ABB survey, 84 per cent of the CEOs polled across various business segments were unanimous about the view that poor business confidence in India might continue till the middle of the next year. Around 77 per cent of the industry heads believed that the growth rebound would be faster and sooner in India than the developed economies like the USA and Europe, said the Assocham president, Mr Sajjan Jindal, while quoting findings of the survey. The ABB survey 'Economic Outlook for India' was based on the responses from 237 CEOs and managing directors across 15 sectors in small, medium and large scale level companies. The survey was done during the month of February.

562

2.6 billion WB loan for India soon

World Bank, which has decided to step up its exposure to India to $14 billion in the next three years, will soon clear a $2.6 billion special loan package. Under the package, India Infrastructure Finance Company is expected to get $1.2 billion, Sidbi $400 million and Power Grid Corporation $1 billion. The bank was in advanced stages of approving this special package, World Bank's economic adviser (India) Mr Giovanna Prennushi told reporters. World Bank is also working on a $3 billion loan for recapitalisation of public sector banks. In December last, the World Bank had decided to step up its exposure to India beginning 2009 to $14 billion from about $8.1 billion during the previous three years. Till February this year, World Bank has approved five projects in India with a total commitment of $1.34 billion. World Bank had sanctioned a $400 million loan earlier this year to Power Grid Corporation, the third largest transmission utility in the world. World Bank's increasing exposure to the Indian infrastructure sector is in line with its thinking that such investments would help developing nations to tide over the global recession.

India, S Korea to ink FTA soon

India and South Korea are expected to sign a free trade agreement (FTA) soon after three years of negotiations, Ambassador of the Republic of Korea to India, Mr Paek Young Sun said today. “Korea and India Comprehensive Economic Partnership Agreement (CEPA) is expected to be signed soon,” Mr Sun said at the opening ceremony of Korea Business Support Centre (KBSC) in New Delhi. However, the Prime Minister, Dr Manmohan Singh is believed to have directed the commerce ministry not to sign any trade pact till the new government assumes power in New Delhi. Mr Sun said that at a time when protectionist sentiments are growing around the world, CEPA represents a landmark agreement and perhaps the way to work. The trade pact involving free trade of goods and services was concluded in September 2008. The trade between the nations has increased from $4.1 billion in 2003 to $15.6 billion in 2008, making South Korea the 12th largest trading partner of India. India exports petroleum products, gems and jewellery, cotton yarn and textile products to South Korea. Petroleum products constitute about 55 per cent of India's exports to South Korea.

563

Tatas’ total debt to cross Rs 1 trillion

Tata Group's total debt is set to exceed Rs 1,00,000 crore in the current financial year, but it appears comfortable on the liquidity front, a report has said. “We expect the total debt of the Tata Group to surpass Rs 1 trillion mark by the end of the current financial year, of which Rs 117 billion is due through March 2010,” analysts at domestic brokerage unit of financial major Kotak group said. When contacted, Tata Sons spokesperson said: “We are not in a position to comment on such reports. As you are aware, Tata Sons does not aggregate the debt of individual group companies as each company is a standalone legal entity and is evaluated accordingly.” Increase of more than Rs 30,000 crore in group's overall outstanding debt position from year‐ ago level of about Rs 70,000 crore was primarily due to its aggressive capital expenditure plans and past acquisitions, the report stated. Analysts, however, noted that Tatas' funding challenges were manageable and debt obligations could be met through free cash flow generated at various group companies and proceeds from the stake sale by holding company Tata Sons. “We believe the group's liquidity position is comfortable at an aggregate level,” Kotak Institutional Equities Research analysts said, adding that possible fund‐raising options included monetizing Tata Motors' commercial vehicle division and stake sale by Tata Sons in TCS and Tata Tele Services. “We believe the Tata Group of companies (represented by five largest listed entities) would generate Rs 10,000 crore in free cash flows in FY 2010, against Rs 11,700 crore in debt coming due for repayment/refinance, implying a funding gap of Rs 1,700 crore,” the report noted. Total debt of these five entities Tata Motors, Tata Steel, TCS, Tata Power and Tata Communications which account for 90 per cent of the group's revenues, would stand at Rs 91,000 crore (estimated) in FY 2010, the analysts said.

GDP growth to stabilise at 7%

India's real GDP is projected to grow by seven per cent in financial year 2010, which can be partly seen in the signs of recovery in the data available for January 2009, the Centre for Monitoring Indian Economy (CMIE) said in its monthly review here. Economic think‐tank CMIE expects the growth rate to climb slowly from around six per cent in the first half to about eight per cent in the second half of the financial year. The global liquidity crisis in late September 2008 has suddenly brought the economy's story of nine per cent growth to a grinding halt. Financial year 2010 would gradually recover from this jolt. Signs of recovery are already evident in the little data that is available for January 2009. While the global economy seems to be getting into a deep crisis, the domestic Indian economy is likely to see a smarter and quicker recovery in the financial year, it said. The agricultural sector has traditionally been

564 the principal source of volatility in the overall growth of the Indian economy. A decline in GDP growth is usually the result of a fall in agricultural production. In the last 10‐year period ending 2005, the agricultural sector recorded a fall in output in every alternate year. CMIE pointed out that this seriously debilitating trend seems to have been reversed. The agriculture sector has registered positive growth for four consecutive years from 2006 to 2009. CMIE expects the sector to register a positive growth rate again for the fifth consecutive year in 2010. “We expect the growth rate to slow down to 2.4 per cent. Nevertheless, a fifth consecutive year of positive growth in agriculture would contribute directly to the growth in year 2010 and would have a positive impact on domestic demand,” the CMIE report said. The agricultural sector registered a 2.2 per cent fall in output in the third quarter of 2009. This decline was not expected, although it comes after a 2.4 per cent fall in kharif sowing and, it comes over a high base since the corresponding quarter a year ago had seen a growth of 6.9 per cent. “We believe that at least a part of the fall may get corrected with revisions in agricultural production data. This is likely to happen in the case of cotton and to a small extent in the case of rice.” The fall of October‐ December 2008 does not dilute the new confidence in agriculture because production is increasingly shifting in favour of the rabi season.

Inflation plunges to 30-year low

For the first time in 30 years, the rate of inflation plummeted to its lowest level at 0.44 per cent for the week ended March 7 from 2.43 per cent in the previous week, giving rise to fears that the economy is headed towards a more severe slowdown with the onset of a deflationary phase in the next few months. Even as the Wholesale Price Index-based inflation plunged by 199 basis points and is almost certain to move into negative territory by the end of this fiscal, the prices of food articles continued to rule at high levels while those of manufactured goods witnessed a sharp decline. In its analysis of the WPI data, the Finance Ministry said: “The drop of 199 basis points in inflation is the steepest since the week ended November 1, 2008. In the last 30 years, there is no record of inflation falling this low since 1977-78.” With the slump in WPI inflation mainly accounted for by the plunge in prices of manufactured items, India Inc. expressed serious concern and sought immediate and adequate monetary steps from the Government and the Reserve Bank of India (RBI) to induce consumer demand and thereby ensure growth. On the contrary, while

565 bankers felt there was no further scope for rate cuts by the RBI, the Government sought to allay apprehensions over the likelihood of the economy entering a phase of deflation. Attributing the fall in inflation to slackening demand, CII Director-General Chandrajit Banerjee said: “We see that there is a lack of demand with high levels of inventory that has led to downward pressure on commodity prices... We need more credit flow [for] industry.” The Government, on its part, sought to argue that the economy could be entering a deflationary phase. Speaking at a FICCI function here, Cabinet Secretary K. M. Chandrasekhar said: “I do not see any signs of deflation right now. Probably, the decline in inflation is more due to the higher base last year than any significant drop in prices.” Speaking on the WPI slump, Planning Commission Deputy Chairman Montek Singh Ahluwalia said: “For one week if it [inflation] goes a little bit below, you can’t call that deflation. But it is true that it has gone down sharply and I think it should remain at a low level.” The drop in price rise, he said, was “good” for the economy.

Geo‐strategic developments:

India's MiG­29s are safe, says Air Force chief Chief of Air Staff, Air Marshal Fali Homi Major, assured that the MiG‐29 aircraft used by the IAF were safe, amidst media reports that Russia had grounded a large number of its MiG‐29 fleet because of structural defects. "I have read the report. But you must understand that MiG‐29s are of various series. I don't know the details of what series of aircraft the Russians are talking about. We had carried out checks with our aircraft and we have no problem with them," Major told newsmen here. He said the induction of new aircraft into the Air Force was going on "wonderfully well" as per schedule. "We are getting everything that we had asked for. There is government support and things are falling in place as per our plans." Asked to comment on the crash of the indigenous Saras aircraft near Bangalore on March six, Major said an enquiry was on and only after its completion could it be ascertained what went wrong. "But you must understand that this is a development aircraft. Such things do happen." On the situation prevailing in Pakistan, he said it would affect India if it worsened. "But we are at a level of preparedness which is very high and there is nothing to worry about."

Navy has ambitious warship construction plans

The Indian Navy has drawn up ambitious plans of indigenously designing and constructing warships and is building seven ships in the country’s ship building yards in Mazagon Dock Limited, Mumbai and Garden Reach in Kolkata, said a senior Naval official. Briefing reporters on the ship building projects undertaken by the Directorate of Naval Design (DND) here today, the director general, Rear Admiral M K Badhwar said three of these belong to the P‐17 Shivalik class of stealth ships at Mazagon Dock Limited (MDL) in Mumbai, three P‐15A Kolkata class which is the follow‐on of the highly successful Delhi class at MDL and a new ASW Corvette at Garden Reach Shipping and Engineering in Kolkata. The DND has made major strides in ship designing though “warship design is becoming more and more complex,” he said but admitted that the biggest difficulty being faced in the area of naval ship construction is “it is not attracting the right kind of talent because of mismatch between private and government. However, we are looking into this aspect and in the last few years we have reorganised the Directorate of Naval

566 Design”. As part of modernising the functioning of DND, Rear Admiral Badhwar said: “Plans are on to have model testing in the country itself even though it is costly. This would help Indian Navy to test its indigenously made warships. We also have state‐of‐the‐art standard software which is being used for Indian ship designs”. He said due to these technological developments, “despite shortage of manpower, the Navy is able to manage designing of ships”. Due to evolving technologies and need for sophistication in future naval combatants, there is a demand for considerable expertise in the core areas of hydrodynamics, hull form design, structures, propulsion and stealth and automation, he added. Over the last two years a number of specialist groups have been created in the DND to consolidate, nurture and enhance expertise in these core areas of design, Rear Admiral Badhwar said.

ISRO gearing up to put Israeli satellite in orbit

A Polar Satellite Launch Vehicle (PSLV) of the Indian Space Research Organisation (ISRO) is getting ready to put in orbit Israeli satellite RISAT in the first week of April. The vehicle integration has already begun at the spaceport at Sriharikota in Andhra Pradesh. The launch campaign is gathering speed. The vehicle, PSLV-C12, will also deploy a mini-satellite called Anusat, built by Anna University, Chennai. RISAT is a radar-imaging satellite used for remote- sensing. It can take pictures of the earth 24 hours of the day, through rain and cloud. The satellite has already reached Sriharikota from Israel.Anusat, an amateur communications satellite weighing 38 kg, was integrated at the Madras Institute of Technology, Chennai, of Anna University. It is undergoing tests at the ISRO Satellite Centre, Bangalore. It will reach Sriharikota soon. Its integration helped the students to get a hands-on experience in understanding the complexities in building a satellite. This is the second time that the ISRO will be putting in orbit a satellite from Israel. On January 21, 2008, a PSLV deployed in orbit Tecsar, also a radar-imaging, remote-sensing satellite. The launch was executed under a commercial contract between the Israel Aerospace Industries (IAI) and the Antrix Corporation, the commercial wing of the Department of Space.India may use the radar images from the Israeli RISAT because the integration of India’s own RISAT had been delayed, an ISRO official said. However, another ISRO official said, “We do not know the end-user.” The Indian version of RISAT will be launched later this year or next year.The PSLV that will put RISAT and Anusat in orbit in April from Sriharikota’s second launch pad is a “core-alone” version without the six strap-on booster motors that form part of the standard PSLV. The core-alone vehicle weighs 230 tonnes while a normal PSLV weighs 295 tonnes. The PSLV is 44 metres tall.

Kashmir:

AFSPA to end during my Govt's tenure: Omar The Armed Forces Special Powers Act (AFSPA), which has been in force for nearly two decades in militancy-hit Jammu and Kashmir, will come to an end during the tenure of his government, Chief Minister Omar Abdullah said on Friday. Talking to journalists in Srinagar after the Army submitted its report on the killing of two youths in Bomai-Sopore last month, Omar said, "I am the first chief minister who has assured on the floor of state assembly that AFSPA will be withdrawn. “Things are changing fast towards normalisation and I can assure that this Act will come to an end during the tenure of National Conference-Congress government," Omar said. The

567 Army earlier submitted its report into the February 21 killing of two youths at Bomai village near Sopore town in North Kashmir.A junior commissioned officer and two soldiers were indicted for 'various lapses' in connection with a firing incident and the Army ordered 'disciplinary action against the three...which will commence with immediate effect'. Omar said his government did not believe in only ordering a magisterial probe and then forget about them. "I only ensured that the Army probe and investigations by the police were completed in a time-bound manner. This has happened," he said. Earlier in the day, a court of inquiry had found three Indian Army personnel guilty of killing civilians in Jammu and Kashmir last month and court martial proceedings will be initiated against them soon. The court of inquiry was conducted by a brigadier of the Srinagar-based 15 Corps. "One JCO (Junior Commissioned Officer) and two jawans (soldiers) have been held guilty of not exercising adequate command and control and also not exercising restraint in using their weapons," an army official said.

Social front:

Human rights violation maximum in UP, Delhi: Survey Uttar Pradesh has topped the list of states with maximum number of complaints relating to human rights violation and New Delhi follows a close second, according to NHRC statistics. The statistics reveal that out of the total 94,559 cases of human rights violation last year, the National Human Rights Commission (NHRC) received 55,216 from Uttar Pradesh alone. This accounts for about 58.39 per cent of the total complaints received by the Commission from across the country, followed by Delhi from where a total of 5,616 such complaints were filed till December last year. Gujarat, which stands third in the list, accounts for a total of 3,813 complaints of human rights violation. The NHRC received a total of 3,672 such complaints from Bihar. Haryana too was close with 3,493 complaints, followed by Maharashtra (3,483), Rajasthan (2,640), Madhya Pradesh (2,246) and Punjab (1,082). However, the Commission did not receive a single complaint of human rights violation from Lakshadweep, while only seven such complaints were filed from Dadar and Nagar Haveli last year.

BJP activists attack 'Christian' Chaplin statue The last laugh may be on Charlie Chaplin, cinema's funny man who mocked prejudice and fascism. The Left‐leaning, suspected communist sympathizer was called many names during his eventful life, but `Christian' wasn't one of them. But the new tag comes courtesy BJP activists in Baindur, near Udupi. They have blocked installation of Chaplin’s statue saying it would hurt Hindu sentiment. The statue was being put up by Karnataka film director Hemant Hegde for the shoot of his movie `Housefull' and was meant for a song sequence. On Friday, local BJP leader Suresh Batwadi stopped the film unit from going ahead with the project, claiming that the land on which the statue was to be erected belonged to the Someshwara temple and the crew lacked the requisite permissions. Hegde said he had obtained all the clearances and had discussed the

568 shoot with the officials. "I had apprised the gram panchayat and the Udupi deputy commissioner. The BJP activists questioned me as to why I was not installing Vivekananda's statue," he said. He said he planned to shift the shoot elsewhere. While condemnation poured in from artistes, the local authorities said they couldn't do anything because there was "no complaint registered". The government is backing the protesters. Home minister V S Acharya, who is in Udupi, told TOI that locals had every right to show their concern. He dismissed reports that BJP workers had objected because Chaplin was a "Christian and not Indian". "It is all fabrication, and a communal colour is being given to it. The local people have valid objections that a statue of 67 feet and of a permanent nature cannot be established." He also claimed permissions had not been obtained. But the police chief had a different take. "As the location is near a temple, the local people are against installing a Chaplin statue and instead want one of Vivekananda. We will wait for the deputy commissioner's opinion and take suitable action based on that," said Gopal B Hosur, deputy inspector general of police. Udupi's deputy commissioner of police Hemalatha admitted that Hegde and his team had discussed the shooting schedule and had sought permission for the statue. "I accorded oral permission for a permanent statue at the place where they were constructing on Friday. The official allotment of land was made at the lower level of the revenue department." "In the last year, episodes of communal intolerance have been shameful events for Karnataka. It's not only because Chaplin's statue is being opposed, it's because these elements are unconstitutional. The constitution allows you the freedom to express your religion. Then how can these extra‐constitutional bodies take over?" asked Girish Kasaravalli, noted Kannada film‐maker. Added Jayamala, actress and president of the Karnataka Film Chamber of Commerce, "How can anyone discriminate against an artist on the basis of religion or caste? Chaplin belongs to all." Rajeev Gowda, IIM‐B professor and Congress politician, said, "These people must be crazy. Chaplin was an artiste who made movies against dictatorship, against the oppression of workers. He united workers and doesn't belong only to the West."

'India short of 10 lakh docs' India's present healthcare scenario is nothing short of a nightmare. According to officials, this country needs 10 lakh more doctors to cater to our healthcare needs. This was the focus at the 3rd National Conference on healthcare leadership with the theme Healthcare Globalisation: Challenges in Healthcare Worldwide, organized by Padmashree College of Hospital Administration and Rajiv Gandhi University of Health Science. "Healthcare services are still inadequate in India," said Vishal Bali, CEO, Wockhardt Group of Hospital. "There is a need for 10 lakh more doctors, 2 million nurses, 50,000 healthcare professionals and 8 million more beds if we have to provide healthcare to all." With $2.8 trillion in sales, healthcare is the largest industry in the world but combating infectious diseases is still a challenge in most of countries including India, he stated. Experts at the conference stressed the need for increased utilization of information technology by healthcare service providers.

569 Make leaders of agitations pay for vandalism: SC This will chastise leaders of trade unions, political parties and organisations who lead agitations that many a times turn violent causing extensive damage to public and private property (buses and cars). For, the Supreme Court on Tuesday said it would pass a direction asking them to compensate the property owner, be it the government or a private individual. Convinced that the woefully inadequate law Prevention of Damage to Public Property Act, 1984 has been unable to stop violent agitations like repeated damage to railway tracks and other public properties during Gujjar agitations, a Bench comprising Justices Arijit Pasayat and A K Ganguly resolved that it's time for the apex court to step in with elaborate guidelines till the Centre came out with an appropriate amendment to give teeth to the present law. It asked amicus curiae Rajeev Dhawan and Solicitor General G E Vahanvati to give suggestions for the guidelines that needed to be put in place immediately to deter extensive damage to public and private property during agitations that turn violent. The court had earlier set up a committee under retired SC judge K T Thomas and accepted its recommendations, which included holding leaders of violent agitation responsible for the damage, videography of all demonstrations and protest marches, making bail a little difficult for the mischief mongers among the demonstrators and fast tracking of their trial. The Bench went a little beyond these recommendations by suggesting that damage to private properties should also be taken into account while assessing the compensation and fastening accountability on leaders of agitations. It said that jailing the violent demonstrators did not solve any problem for the property owners who have lost it all. The owner has to move a civil court seeking damage, the Bench said. It suggested setting up of damage assessment boards at the district level under the supervision of high courts in the states for speedy compensation to the victims of violence. To vent its anguish at the remorseless acts of violence during agitations by participants, the Bench said the report pointed out that real perpetrators or the brains behind such wanton destruction of property were sitting somewhere else and the hirelings are caught on camera. "What is made out from their facial expression is as if they have done a national service through their heroics, but actually what they do is indeed a national shame," the Bench said.

India says Gandhi items belong to Trust, auction is illegal Dispelling doubts over the ownership rights of Mahatma Gandhi's memorabilia which went under the hammer in New York, India has told the US government that these articles belong to the Navjivan Trust and their auction was illegal. Responding to the US Justice Department's queries, a senior cultural affairs ministry official said, "there has been no change in our stand and we have reiterated that these Gandhi articles belong to the Navjivan Trust and the auction is illegal." US Justice Department had raised queries to the Indian government about the auctioned items of Gandhi. Industrialist Vijay Mallya won the bid for $1.8 million. However, he could not acquire them because of the legalities involved with the auction. The items on sale were Gandhi's metal‐rimmed glasses, a pocket watch, a brass plate, a bowl and a pair of sandals used by the Mahatma. "We have responded to the queries through the Ministry of External Affairs and we have maintained that all these items are owned by the Navjivan Trust, founded

570 by Gandhi himself. “No one has the right to utilise it for commercial purpose including auctioning or sale," he said.

Foreign Relations:

No military solution to Tamil issue in Sri Lanka: Mukherjee External affairs minister Pranab Mukherjee said that India was deeply concerned at the sad plight of the Tamil civilians in Sri Lanka who have been the victims of crossfire but insisted that there was no military solution. "We are deeply concerned at the sad plight of the Tamil civilians who have been caught in the crossfire between the Sri Lankan government and the LTTE...," Mukherjee told reporters at the AICC here. The minister, however, said that "military solution was not the solution" and the issue has to be addressed politically. He said that he had visited Sri Lanka and had long discussions with the leaders and asserted the solution has to be found with devolution of power "without altering the territorial integrity and constitutional sovereignty of Sri Lanka". "India will provide all facilities for the rehabilitation of internally displaced Tamilians," the minister added.

Sino-Indian border tranquil: Menon

The Sino-Indian border is tranquil and both sides are maintaining the status quo, Foreign Secretary Shivshankar Menon said here on Thursday. Pointing out that both sides had their own perceptions about the boundary, Mr. Menon said each side treated the other’s crossing over as an incursion. But the important thing was whether there had been a change in the pattern of incursions and whether it was taking place in new places. The answer to both was in the negative, he said, while taking questions at the release of the book “India-China relations the border issue and beyond” co-authored by Mohan Guruswamy and Zorawar Daulet Singh. “Both sides maintain the status quo. We don’t see changes in the pattern by either side,” Mr. Menon added. While there was a border issue there was no border dispute with China unlike with Pakistan. The last casualty that took place was in October 1975 and even that was an accident. The Foreign Secretary did not subscribe to the idea of publicly discussing the issue by pointing out that as was the case in the 50s and 60s, there would be less chance of coming to a reasonable solution.Although China had emerged as India’s largest trading partner, overland trade had been slow to take off despite New Delhi having pushed hard for reopening the routes since the late 80s. This was due to socio-economic changes over nearly four decades when the traditional trade routes had been closed following the 1962 hostilities. Asked why India did not open up its archives just as China had done, albeit selectively, Mr. Menon said the Ministry of External Affairs was willing to open up and had been making available part of the diplomatic correspondence with China to “bonafide scholars.”

People of Pakistan love democracy: Pranab

The people of Pakistan love democracy but the institutional framework that can strengthen the democratic system in that country is not adequately strong enough.” This was stated by External Affairs Minister Pranab Mukherjee on Thursday. “The root cause of the trouble in Pakistan is that the country has had long periods of militarism and only in between has there been democracy,”

571 he said, expressing the hope that the people of that country get the democracy they so much cherish. Mr. Mukherjee was talking to journalists while taking time off his election campaign in the Jangipur constituency of Murshidabad district. On the relations between India and Pakistan, he said there was no particular tension between the two countries. Referring to 26/11 attacks in Mumbai, he said the incident was not “India-Pakistan centric.” “Our objection was that terrorists were using parts of Pakistan to launch terror attacks on India and other parts of the world,” Mr. Mukherjee asserted. “It is the responsibility of the Pakistan government to dismantle the terrorists’ infrastructure and bring those perpetrating terror attacks to justice,” he reiterated.

U.S. wants India to de-escalate on border with Pakistan

South Block may have successfully fought off the initial drive to formally extend Richard Holbrooke’s ‘AfPak’ mandate to India but the Obama administration’s Special Representative for the region drew first blood last week, asking New Delhi to draw down its own troop presence on the Pakistan border so that Islamabad can beef up its presence on the Afghan front. The request that India de-escalate its forces on the border was conveyed to Foreign Secretary Shiv Shankar Menon during the latter’s visit to Washington last week, well-placed sources said. In response, India told the U.S. that any escalation which had taken place on the border in the wake of last November’s terrorist attacks in Mumbai was entirely on the Pakistani side. Mr. Holbrooke was also told that India had not deployed additional forces that could now be withdrawn to other locations. Indian officials believe the redeployment of Pakistani troops to the Indian border in December 2008 was prompted by the military establishment’s desire to talk up the prospect of war with India and thereby divert attention from the complicity of Pakistani elements in the Mumbai incidents. The Obama administration was thus told that Pakistan’s unwillingness to revert to the pre-Mumbai troop deployment pattern had nothing to do with any increased military threat from India. Though there has been no major redeployment of Indian troops to the border, the Army did extend the duration of its winter exercises in December, in part as a contingency for any unexpected developments. But the situation now, say officials, is completely normal on the Indian side. A number of American officials and analysts have made a link between tension on the India-Pakistan border and the war in Afghanistan. Last year, Barnett Rubin and Ahmed Rashid wrote an article in Foreign Affairs proposing a grand bargain aimed at incentivising greater Pakistani contribution to the Afghan war by offering a more sustained international effort at resolving the Kashmir dispute with India in exchange. Both Mr. Rubin and Mr. Rashid have reportedly been hired as advisers by Mr. Holbrooke.

U.S. keen on ‘very positive’ ties with India

Although the new U.S. administration is yet to complete its global strategic review, it has conveyed its intention to develop a “very positive” relationship with India, said highly placed sources. In meetings with Indian interlocutors, the U.S. Secretary of State Hillary Clinton expressed her government’s intention to “develop a true standalone global partnership which would take the relationship to new levels.” Apart from attempting a convergence of views on the regional situations, India is keen on developing ties in education. With the civil nuclear agreement in the bag, it is hoping for the removal of many older restrictions on high-technology transfers. On climate change, both sides have discussed the prospects of working together on developing clean emission technologies. On the military front, Indian officials have interacted with the U.S. Central Command chief, Gen. David Petraus, with both sides expressing satisfaction over the military-to-military links in the form of high-level visits and joint exercises. The two sides also discussed the defence equipment relationship as also the situation in the region. The Central Command currently oversees U.S. military operations in Iraq, Afghanistan

572 and Pakistan. With the U.S. keen on opening additional supply routes to Afghanistan because of attacks on its convoys in Pakistan, both sides also touched upon the issue of utilising the Chabar port in Iran which could take the supplies into Afghanistan via the recently India-built road from Zaranj to Delaram. “Our approach is to create an area of peace where those who have laid down their arms are welcome. Development work must be undertaken in this area of peace. We can’t choose good and bad Taliban ab initio,” said the sources. “There is a fair degree of convergence the way they see it now,” they added while pointing out that other countries will deliberate on the future course of action with respect to Afghanistan at a string of conferences over the next fortnight. The first is the meeting of the Shanghai Cooperation Organisation in Moscow on March 27 which will be followed by an international meeting at The Hague on March 31. India is likely to be represented at both the meetings. The North Atlantic Treaty Organisation will also discuss Afghanistan at its summit meeting slated after the G-20 meeting in London on April 2.

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