NPR 2009-05-13

From NPR News in Washington, I'm Jack 1 Speer.

The new US envoy 2 for Afghanistan and Pakistan told attendees at a Senate hearing today that while Pakistan faces an extremely difficult situation, the Muslim nation of 175 million people is not in danger of becoming a failed state or being taken over by Islamic extremists. Richard Holbrooke also said there were signs the situation there is improving.

"you can see the signs that Pakistan's political effort is knitting together somewhat compared to where it was a few weeks ago."

Pressing members of the Senate Foreign Relations Committee, Holbrooke said dealing 3 with issues of insurgency 4 there are crucial in terms of the situation in neighboring Afghanistan. The administration plans to implement 5 new aid plan in Pakistan that could call for $7.5 billion in development over the next five years, including spending money for new roads, schools and enhanced law enforcement.

The part of Medicare that pays for hospitals will run out of money just eight years from now. That's according to the annual report from its trustees. NPR's Julie Rovner has more.

The annual report on the state of Medicare's finances moved up the insolvency 6 date for the hospital insurance part of the program by two years from 2019 to 2017. That's the portion of Medicare that's financed by payroll 7 taxes. The remainder of the program is funded by general revenues and premiums 8. So technically 9 it can't go bankrupt. Still Health and Human Services Secretary Kathleen Sebelius said the new numbers are a wake-up call.

"It's another sign that we can't wait for real, comprehensive health reform."

Trustees attributed the change in the insolvency date largely to rising health care costs and a weakening economy. Congress and President Obama are hoping to include Medicare changes in the big health care bill they want pass this year. Julie Rovner, NPR News, Washington.

Commerce Department reported today the US trade deficit 10 in March rose. NPR's Tom Gjelten reports.

A slumping 11 global economy brings down US exports and imports alike. Foreigners buy less from the United States, fewer cars, fewer consumer goods, less equipment. But Americans also buy fewer goods from foreigners during a downturn. The trade balance depends on which changes the most. More exports relative to imports mean a trade surplus. When imports exceed exports, it’s a deficit. Over the previous six months, the trade deficit had fallen. Imports dropped even faster than exports. In March, the deficit rose to $27.6 billion. Sales of US products abroad fell more than US spending on foreign goods. That's largely because rising oil prices made petroleum 12 imports slightly more expensive. Economists 13 had actually predicted the trade deficit for March would rise even more than it did. Tom Gjelten, NPR News, Washington.

On Wall Street today, the Dow Jones Industrial Average gained 50 points closing at 8,469. The NASDAQ was down 15 points today.

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Officials in Arkansas say three contractors 14 are dead after an explosion at a fuel storage facility in the north central part of the state. The blast apparently 15 occurred while workers were examining an empty gasoline tank that had recently been cleaned as they were preparing to install new equipment. The facility owned by Houston-based Teppco Partners is just to the northeast of Little Rock, Arkansas. It has five fuel storage tanks. Still not clear what caused the explosion.

France's National Assembly has approved a so-called "three strikes" law that bans illegal Internet downloading of protected films and recordings 17. Frank Browning reports from Paris.

For the second time in a month, the Parliament's Lower House voted to approve of a law backed by filmmakers, musicians and the recording 16 industry. The law would ban people from access to Internet servers after they have committed a third illegal download. A similar law was passed then reversed in the French Parliament last month when the Socialist 18 oppositions 19 staged a surprise vote with many of the bill's supporters absent. They claimed the law is unenforceable and could even leave innocent Internet users victim to hackers 20 who gain access to their home computers. The law also defies a vote last week by the European Parliament in which it prohibits individual government from enacting 21 such laws, setting up a court battle between France and the European Union. For NPR News, I'm Frank Brown