News & Reports 2011-02-13

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Egypt's ruling military has reaffirmed the country's commitment to all its international treaties and laid out the first tentative steps to keep Egypt's economy and state functioning.

Taliban armed insurgents 1 Saturday attacked the provincial 2 police headquarters in southern Afghan city of Kandahar, killing 3 at least 21 and wounding dozens more.

Palestinian President Mahmoud Abbas has called for elections before September.

European Union and International Monetary 4 Fund inspectors 5 give the green light for a new 15 billion euros tranche of aid for Greece.

Hot Issue Reports

Egypt's Military Promises Country Will Abide 6 by Its International Agreements

Egypt's ruling military has reaffirmed the country's commitment to all its international treaties and laid out the first tentative steps to keep Egypt's economy and state functioning.

The military statement, read by a senior officer on state TV, confirms that the country's 1979 peace treaty with Israel will remain intact.

"Egypt's committed to all regional and international obligations and treaties. The High Command of the Armed Forces asks our great nation to cooperate with their brothers and sons in the civil police. There should be cooperation and peace amongst every one."

This is the first cautious attempt to define the next steps after President Hosni Mubarak handed over power to a council of his top generals and resigned in the face of an wave of popular protests.

"The present government and (district) governors shall continue their duties until the formation of a new government. Looking forward to the peaceful handover of power within the free democratic system which allows an elected civilian 7 authority to rule the country."

The statement also asked the public, particularly the millions in the government sector 8, to "work to push the economy forward," after the disturbances 9 of the past three weeks.

However, many protesters might be left disappointed as the statement left the key question unanswered as to how long the current government would stay in place.

Egypt's largest opposition 10 group, Muslim Brotherhood 11, said that they would not put forward a candidate for the presidency 12 and would not ask to participate in any transitional government.

Meanwhile, Israeli Prime Minister Benjamin Netanyahu has welcomed the announcement by Egypt's ruling military pledging its continued support of the peace treaty between the two countries. He said Egypt-Israel peace is a cornerstone of Mideast stability.

Taliban Insurgents Attack Police Headquarters Killing 21

Taliban armed insurgents Saturday attacked the provincial police headquarters in southern Afghan city of Kandahar, killing at least 21 and wounding dozens more.

Insurgents were armed with bombs, automatic rifles and rocket-propelled grenades. They first detonated a series of explosions that rocked the area before started battling with the provincial police force.

Abdul Hadi, is a shopkeeper and resident of Kandahar city.

"I was sitting in my shop when an explosion happened followed by shooting, then Afghan and American forces arrived there and we closed our shops and left the area. The explosion happened in a nearby wedding hall."

The interior ministry 14 said among the 49 wounded, 25 were police officers, 23 civilians 15 and one intelligence agent.

The police post is located in central Kandahar, not far from the governor's offices.

The raid showed that insurgents were still able to launch deadly strikes on heavily fortified 16 government institutions, despite the past year's influx 17 of US troops into Kandahar province, the Taliban's birthplace.

The attack was the fifth by suicide bombers 18 in Kandahar Province so far this year.

Hamas Rejects Palestinian Authority Call for Election

Palestinian President Mahmoud Abbas has called for elections before September.

Senior Abbas aide Yasser Abed Rabbo said a new legislative 19 council to be formed after elections would help to resolve the differences between the Abbas government and his rival group Hamas.

"The Palestinian leadership stresses that it is preparing for legislative and presidential elections within the next few months, in accordance with the will of the Palestinian people. And therefore, we invite all the sides to set aside all the reservations and all points of disagreements so that we would concentrate together on holding the elections on a date that does not exceed the coming September."

However, the move was quickly rejected by Hamas.

Hamas spokesman Fawzi Barhoum said the Western-backed Abbas, who has served as president since 2005, lacks the legitimacy 20 to make such a call.

"Hamas will not recognize these elections, will not participate in them and will not give them legitimacy in any way or form because they are illegitimate. Whatever is based on illegitimacy is in itself illegitimate."

Hamas won the last parliamentary election in 2006 and a year later routed Abbas's forces to seize control of the Gaza Strip.

Its opposition to Abbas's peace moves with Israel is one of the issues keeping the factions 21 apart.

The U.S.-sponsored peace negotiations 23 between Palestinian and Israeli teams have faltered 24 since being relaunched last year.

Senior Abbas aid Abed Rabbo confirmed that Saeb Erekat, the chief Palestinian negotiator in the recent round of talks, has tendered his resignation, but Abbas has yet to accept it.

Russian and Japanese FMs Meet, amid Tension over Disputed Islands

Talks between Russian Foreign Minister Sergey Lavrov and visiting Japanese foreign minister Seiji Maehara has failed to ease the tension over the status of a disputed island chain.

Lavrov describes the government-sponsored rally in Tokyo earlier this week as "unacceptable."

"I have brought to my Japanese colleague's notice the fact that the excesses that followed the so-called Day of Northern Territories are of course marring the general atmosphere of our relations and are not contributing to their constructive 25 development."

Meanwhile, Japan is closely monitoring the heightened Russian military activities near the islands after Russian President Dmitry Medvedev's announcement of sending more weapons to protect the islands as an "inalienable part of Russia."

"The Northern Territories are time-honoured territories of Japan. This point of view is based on history and is recognised in the international arena 26."

Relations have been strained by the long-running dispute over the four islands in the Pacific Ocean, called the Southern Kuriles in Russia and the Northern Territories in Japan.

The former Soviet 27 Union troops seized the islands off northern Japan at the end of World War II, and the row has kept the two countries from signing a formal peace treaty.

The prospects 28 of the two foreign ministers' talks remain uncertain, but they agreed on further talks to solve the dispute.

Iran's Ahmadinejad Says in New Middle East "No Room" for U. S., Israel

Iranian President Mahmoud Ahmadinejad said Friday that the new Middle East is being carved out that will be free of the United States and Israel.

Ahmadinejad made the remarks when addressing a large crowd that was celebrating the 32nd anniversary of the Islamic Revolution.

"Shortly a new Middle East -- without the U.S. and the Zionist regime -- will be created and the oppressors will not have a place in the Middle East."

Ahmadinejad also said Iran will never slacken in pursuing its nuclear rights, and the country will send the first Iranian astronaut to space before year 2022.

In Qom, as elsewhere in Iran, people poured out on to the streets to mark the anniversary of the Islamic Revolution, which ended with the toppling of the U.S.-backed regime of the Shah.

Ali Jahanbakhsh, a 63-year-old baker 29, said Egypt, Tunisia and Yemen had taken inspiration from Iran's Islamic Revolution 32 years ago.

"Fortunately, after 32 years of revolution, day by day our revolution holds strong against Islamic enemies and the message of the great Khomenei 30 years ago, when he said 'Our revolution is to be exported - and that has started to happen now in Egypt, Tunisia and Yemen."

The marchers chanted slogans in support of the Egyptian uprising.

Pakistan International Airlines Staff Clash with Police

A four day strike at Pakistan International Airlines, PIA, has forced the state-owned airline to ground the last of its planes, leaving thousands of passengers stranded 30 and raising concerns that a prolonged standoff could spark serious unrest.

In addition there were clashes between strikers and police at the Karachi airport.

Aisha Bibi is a PIA flight attendant.

"Today they were beating us, and shut us into rooms. It is our demand that they change the managing director, otherwise we will continue our protest."

A spokesman for Pakistan International Airlines said police must drive the strikers out of Karachi airport so that those willing to work can.

At least 250 domestic and international flights have been cancelled since the strike began earlier this week. Moreover, the carrier has closed its main booking office in Karachi.

Pilots and support staff went on strike over a proposed route-sharing deal with Turkish Airlines.

PIA managers say the route-sharing idea will reduce financial losses, but strikers fear it will lead to job and pay cuts.

The strike is costing the airline roughly 6 million dollars a day.

Prime Minister Yousuf Raza Gilani ordered his defense 31 minister to resolve the strike "urgently," calling for negotiation 22 between staff and management.

However, there has been no sign of compromise so far.

PIA is Pakistan's largest carrier and the main operator of domestic flights, but it has been struggling with bad management and declining profits for years.

Inspectors Say Financial Reforms Face Critical Test over Next Few Months in Greece

European Union and International Monetary Fund inspectors have given the green light for a new 15 billion euros tranche of aid for Greece.

Servaas Deroose, EU's Deputy Director General for Economic and Financial Affairs at the European Commission, said Greece's ambitious program to overcome its debt crisis has made progress.

But he urged Athens to speed up economic reforms to meet the targets of its bailout deal.

"Broadly speaking, the program is on track. There remain a number of important challenges to overcome to secure both fiscal 32 sustainability and economic recovery. Indeed, Greece has achieved considerable progress in fiscal adjustment to date but more needs to be done to secure lower deficits 34 and debts and to put public finances on a sustainable path."

The 15 billion euros are one tenth of a loan package from the IMF and other EU countries that use the euro, that saved Greece from bankruptcy 35 last May.

The country has pledged to reduce its budget deficit 33 to below the EU limit of 3 percent of gross domestic product by 2014.

IMF mission chief, Poul Thomsen, said the Greek reform program was at a critical juncture 36.

"The focus will now in the second phase shift to structural 37 reforms - the structural reforms that will be needed, to restore growth, to increase employment, and to be sure that further stabilization 38, further reduction in the deficit in a socially sustainable manner is possible."

Ending their inspections 39 that started late last month, the officials have called on the government to carry out a massive privatization drive worth 50 billion euros though 2015.

Turkey Flotilla Raid Report: 5 Victims Shot at Close Range

A Turkish government inquiry 40 into Israel's raid on the Gaza-bound flotilla that killed eight Turks and a Turkish-American disclosed that Israeli soldiers shot five victims at close range.

The report said two of the victims were killed even before soldiers boarded the Turkish ship last May.

Chairman of the inquiry, Mithat Rende, told a news conference in the capital, Ankara, that Israel "violated the Geneva Convention and all basic human rights agreements."

"A huge attack with weapons was made against a convoy 41 containing people from 37 nations. We have detailed 42 the accounts in our report. Another thing we concluded is that Israel could have intercepted 43 the convoy without the use of weapons. Israel is responsible for the compensation of damages and loss of life. They need to compensate 44 and apologies. By requesting these things we are actually providing a way out for Israel."

Israeli commandos raided the flotilla as it sought to break Israel's Gaza blockade.

Israel claimed the commandos were defending themselves.

An Israeli inquiry last month cleared its military and government of any wrongdoing, which sparked Turkish protests.

The incident further aggravated 45 relations between the former allies, which are already tense over Turkish criticism of Israel's treatment of Palestinians.

Julian Assange's Lawyer Says Sweden's Prime Minister Has Made Fair Hearing Impossible

A lawyer for WikiLeaks founder 46, Julian Assange, has accused Sweden's prime minister of damaging his client's chances of a fair trial for alleged 47 sex crimes.

Assange's lawyer, Geoffrey Robertson, said Swedish Prime Minister Fredrik Reinfeldt had created a "toxic 48 atmosphere" by portraying 49 his client as "public enemy number one."

"His attempt to vilify 50 and prejudge this matter before even Julian Assange has been charged. It's wholly exceptional, wholly inappropriate, in this country the matter would be dropped as a result of it."

The three-day hearing at the top-security Belmarsh Magistrates 51' Court in London was adjourned 52 until February 24 when Judge Howard Riddle 53 is expected to rule whether Assange should be extradited to Sweden.

After the hearing, Assange told reporters he felt he was not able to present his side of the story.

"In this case, what we have not been able to present is any evidence of the allegations. We have been confined to procedural arguments about some abuses of process, the validity of a warrant on its face, but not what props 54 it up. And that is something that seems to me like an injustice 55 as someone who is going through this matter."

The Australian is wanted in Sweden to face allegations of sexual misconduct. Assange denies the allegations.

Assange's lawyers argue that transfer to Sweden could be a stepping stone to extradition 56 to the United States, where they say he could end up facing execution for leaking secrets.

Nokia Shares Falls after Announcement to Team up with Microsoft

Nokia's shares have fallen sharply after an announcement to team up with Microsoft in an attempt to regain 57 ground lost to the iPhone and Google's Android.

Nokia shares tumbled 10 percent.

It is indicative of investors 58' doubts about the financial impact of Nokia's new chief executive, Stephen Elop's strategy, which will use the Windows phone operating system for its smartphones.

Elop, on the other hand, says "the game has changed from a battle of devices to a war of ecosystems 59."

"Nokia is facing challenging and very dynamic times right now. We have fierce competition from many different directions, whether it's different ecosystems at the high end, in the mid 13 range, at the low end - all of those types of things. The entire smartphone market is growing rapidly and we should be setting the pace."

The deal marks a potential breakthrough for Microsoft, which should get its software into more than 30 million smartphones sold by Nokia every quarter.

However, analyst 60, Ben Wood, says the announcement went much further than anticipated.

"I think there is uncertainty 61 around this announcement at the moment because it's gone much further than people anticipated. Yes, there was a lot of speculation 62 that Nokia would licence the Microsoft Windows Phone 7 platform, but no one realized the depth of partnership 63 with Nokia gifting its services to Microsoft and trying to add value to the platform and staking its whole future on this platform was going to come to fruition. And therefore there is a lot of risk."

According to the deal, Microsoft's Bing will power Nokia's search services, while Nokia Maps will become a core part of Microsoft's mapping services.

But, the partnership will mean thousands of job cuts at Nokia around the world.

China Daily: Fighting Inflation Is in Urgent Need and Calls for More Concrete Measures

For the third time since last October, the People's Bank of China raised its benchmark one-year deposit rate by a quarter of a percentage point, to 3 percent, and its one-year lending rate by a similar amount, to 6.06 percent.

A commentary on the China Daily says the interest rate hike reflects the urgency of accelerating inflation, and Chinese policymakers must take more measures to prevent inflation from escalating 64 further.

The article says the consumer price index is expected to reach a new high in January, after reaching a 28-month record of 5.1 percent last November.

Also, the author of the article points out that the prolonged drought has hit northern China hard and called for extra tightening 65 measures to ensure overall price stability.

Besides domestic factors, the author points out the overseas threats, especially the super-loose monetary policies that major developed economies have adopted, which are undermining the country's efforts to curb 66 inflation, as a large amount of capital flows are driven into emerging economies, including China.

The U.S. Federal Reserve Chairman Ben Bernanke has called China's interest rate hike a "surprising" way to tackle inflation, urging Beijing to let its currency rise, instead.

The commentary says such remarks indicate the United States is far from recognizing the danger of too much cheap money, which, to a certain extent, led the world into the worst global financial crisis in more than 70 years in the first place, and now threatens to fuel runaway 67 inflation in many emerging economies.

The author concludes that China's fight against inflation will determine its chances of maintaining sound and stable growth without risking either over-heating or a hard landing.

As the world's second largest economy, China's success is important for a lasting 68 global recovery that seems to hinge more than ever on the solid growth of emerging economies.

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Eastday.com : More Social Powers Should Be Involved in the Crackdown of Children Abduction

A micro-blog dedicated 69 to information about children forced into begging by people traffickers is getting nationwide attention.

The blog was started by a scholar with the Chinese Academy of Social Sciences. The micro-blogging campaign calls on concerned citizens to post snapshots of underage beggars to facilitate their rescue.

Within days, numerous photos were posted from across the country. As of Wednesday reports say six children have been reunited with their parents.

A commentary on Eastday.com applauds the move, but also points out that this phenomenon reflects the need for social powers to assist government work.

The article says there are specific government departments in charge of children's and women's abduction. But more NGOs charity organizations as well as individuals should be allowed to get involved in this campaign. The article goes on to say social powers can not only serve as active monitors, but also help to improve the moral standard in society.

The article also raises the point that the current legal system is not comprehensive enough in defining child abduction. And the government should make long-standing efforts in this cause instead of periodic crackdowns as a result of media exposures.

The author of the article suggests that the government should further strengthen the social assistance system and boost the development of philanthropy, which can also help to tackle this criminal act at its root.