News & Reports 2011-05-29

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In This Edition
 
US President Barack Obama visits Poland to stress missile defense 1 and energy security.
 
Japan and the European Union agree to begin negotiations 2 on a free trade agreement that will deepen economic ties between two of the world's largest economies.
 
Two German soldiers were killed and three others were injured in an attack on the compound in northern Afghanistan.
 
And Chinese experts call for more financing channels be established to ease funding problems faced by small enterprises as a result of the country's tightening 3 monetary 4 policy.
 
 
Hot Issue Reports
 
Obama Meets with Polish Leaders, Discussing Democracy and Defence
Visiting US President Barack Obama has met with Polish President Bronislaw Komorowski and Prime Minister Donald Tusk 5 in the Polish capital, Warsaw.
 
Obama's two-day visit to Poland will focus on missile defence, energy security and promoting democracy in eastern Europe.
 
Whilst meeting with Mr Komorowski, Obama praised Poland's progress over the past decades.
 
"This incredible transformation 6 that's taken place over the last 25 years in Poland is now making it a leader in Europe as we look forward to an EU Presidency 8 for Poland, that's an example of the leadership it's taking."
 
The president also elaborated on Washington's stance on missile defence in Europe.
 
"We believe that missile defence is something where we should be co-operating with the Russians because we share external threats and this would not be a threat to the strategic balance that Russia is concerned with but we think it's very important that NATO remains 9 in charge of NATO defence capabilities 10, that's one of the central principles."
 
Obama abandoned in 2009 the missile defence plan of his predecessor 11 George W. Bush, who intended to deploy 12 missile defence systems in Poland and the Czech Republic. Instead, Obama pushed forward a network of ship-based smaller and more modern missiles.
 
Obama's visit to Poland caps a six-day European tour that has also taken him to Ireland, Britain and France.
 
Japan and EU to Begin FTA Negotiations
Japan and the European Union have agreed to begin negotiations on a free trade agreement that will deepen economic ties between two of the world's largest economies.
 
Herman Van Rompuy, President of the European Council, hailed the move after a summit with Japanese Prime Minister Naoto Kan in Brussels.
 
"We have taken an important step in our trade relationship. By launching a scoping exercise we have set a course towards a free trade agreement between the European Union and Japan. We still have a long way to go but the objective is now clear."
 
Meanwhile, Jose Manuel Barroso, President of the European Commission, said the EU is willing to help with Japan's recovery from a catastrophic quake and tsunami 13 in March.
 
"We are standing 14 by Japan and this summit was an occasion to show that commitment. We firmly believe that Japan is safe and open for business. And I am sure that with the efforts of the government Japan will come back even stronger than before."
 
For his part, Naoto Kan said developing more stringent 15 international rules on nuclear safety is an important aspect of bilateral 16 cooperation.
 
"We agreed that it would be extremely important for us to bilaterally 17 cooperate in the betterment of nuclear safety. In regard to import restrictions 18 of Japanese products to the European Union, I have asked for a relaxation 19 of the measures based on scientific evidence."
 
A Japanese official has said that Japan and the International Atomic Energy Agency want to host an international conference on nuclear safety next year to share lessons from the latest nuclear accident in Japan.
 
Afghanistan Attack Killed Two German Soldiers
German Defense Minister Thomas de Maiziere confirmed that two German soldiers were killed and three others injured in an attack on the compound of northern Afghanistan's governor in Takhar province on Saturday.
 
General Dawood Dawood, police chief of north Afghanistan, was also killed in the attack.
 
But de Maiziere stressed the attacks will not stop the partnership 20 between German and Afghan forces.
 
"These assassins want to destroy these kind of partnerships 21. They must and will not succeed. Theses assassins and their leaders are criminal murderers and political criminals to the peaceful development process for the freedom of Afghanistan. They won't have the last word. We won't abandon our way of our partnership."
 
The Taliban claimed responsibility for the attack, saying they had targeted the meeting of senior leaders.
 
The killing 22 of Dawood is a big blow to a force which is struggling to professionalize and shake off a reputation for abuse and corruption 23 as foreign forces prepare to hand over security responsibilities in coming years.
 
It may also complicate 24 NATO efforts to prepare for the start of a security handover from foreign forces to Afghan soldiers and police in some parts of north Afghanistan.
 
Roadside Bomb Kills One Peacekeeper in Lebanon
A roadside bomb has ripped through a convoy 25 of United Nations vehicles carrying Italian peacekeepers in south Lebanon, killing one of the soldiers and wounding several others.
 
Italian Foreign Ministry 26 spokesman, Maurizio Massari, confirmed the peacekeeper's death and said the blast hit a vehicle carrying six Italian soldiers in the port city of Sidon.
 
Lebanese security and military officials, however, said six UN peacekeepers and two civilians 27 were wounded with one of the peacekeepers in serious condition.
 
Abu Tony, a passerby 28, described what he had seen.
 
"A United Nations Interim 29 Forces in Lebanon convoy was hit by a road side bomb as it was passing by here."
 
The UN peacekeeping force, known as United Nations Interim Forces in Lebanon, is deployed 30 in southern Lebanon to monitor the border with Israel.
 
The last such incident was in January 2008, when a roadside bomb struck a UN vehicle traveling along the coastal 31 highway south of Beirut, slightly wounding two peacekeepers.
 
No group has claimed responsibility for any of the attacks targeting the peacekeepers.
 
Egypt Opens Rafah Crossing for Gaza Residents
Egypt has opened the Rafah crossing for residents of Gaza, weakening a blockade of the Palestinian territory imposed by Israel to isolate 32 Hamas.
 
Palestinians hail the move as a manifestation 33 of a new era in relations after the ousting 34 of Egyptian president Hosni Mubarak, who helped preserve the blockade of Gaza.
 
Nearly 300 Gaza residents entered Egypt through the Rafah crossing in the first hours after it opened.
 
Many of them are joyous 35.
 
"We are victorious 36. Egypt has been returned to us. Egypt is not just the sister or father figure for the Arabs, but it is heart that beats for all Arab and Islamic countries. this is truly my feeling. I am so happy."
 
Under Egypt's new travel guidelines, women, minors 37 and men over 40 no longer require a visa to enter the country, meaning hundreds more passengers will be able to cross everyday.
 
Previously 38, the terminal could cope with no more than 300 outgoing passengers per day and officials said with streamlined co-ordination, the daily numbers are expected to triple.
 
Israel has been maintaining a tight blockade of the Gaza Strip and declined to comment on the opening of Gaza's only free exit point to the world.
 
US Envoy 39 Wraps up His N. Korea Trip
The United States human rights envoy to North Korea, Robert King, says the North has released a detained U.S. citizen, but the two sides did not agree to any food assistance during his visit.
 
King, speaking at Beijing airport upon returning from Pyongyang, confirmed that North Korea had released an American citizen Jun Young Su, detained there on unspecified charges for the past six months.
 
King's five-day trip was the first official U.S. visit to North Korea since 2009, and comes amid signs the U.S. is looking to revive multilateral talks on the country's nuclear program after a hiatus of more than two years.
 
But King stressed that his trip does not mean an imminent 40 resumption of aid.
 
"While there our team had three-and-a-half days and very serious and thoughtful talks with the Foreign Ministry. We were warmly welcomed. We were received at the highest levels, we discussed a number of issues. We will report back to Washington on our meetings. We did not negotiate or agree to any provisional food assistance. That is a decision that will have to be made in Washington."
 
The U.S. has come under mounting pressure to resume food aid to North Korea after a U.N. report said earlier this year that more than 6 million people urgently need help in that country.
 
The U.S. suspended food supplies to the North in 2008, over a monitoring dispute, which will only be resumed with the South's agreement.
 
Cuba Boosts Private Sector 41 Economy
Cuba will cut taxes for its growing private sector and allow private restaurants to expand as it tries to improve its socialist 42 economy and create more jobs.
 
Self-employed workers who hire between one and five employees will be exempt 43 from certain taxes this year, and some occupations, including home construction and transportation, will see temporary or permanent cuts.
 
Restaurant owner Guadalupe Herce said she plans on expanding and hiring more workers to take advantage of the tax break for adding jobs.
 
"Having more tables means I need more workers. They don't have to be cooks, they can do anything. There is no need to pay taxes this year."
 
The moves are part of an overhaul 44 of the Cuban economy that President Raul Castro has undertaken in the past year.
 
The reform aims to reduce the costs and the role of debt-ridden government, cut more than one million jobs from state payrolls 45 in the next few years, and introduce more incentives 46 to help the private sector.
 
Endeavour Astronauts Complete Final Spacewalk
Two astronauts made history on Friday as the final spacewalkers of NASA's 30-year shuttle program, completing construction of the International Space Station with the smooth addition of an extension boom.
 
Astronauts Gregory Chamitoff and Mike Finke Chamitoff teamed up with robot arm operator Gregory Johnson to accomplish this last construction job.
 
"This space station is the pinnacle 47 of human achievement and international cooperation. Twelve years of building and 15 countries and now it's the Parthenon in the sky and hopefully the doorstep to our future. So congratulations everybody on assembly complete."
 
The space station's newly attached boom was used by shuttle Endeavour's astronauts to survey their ship for micrometeorite damage.
 
The boom will remain permanently 48 at the space station and assist with future repairs, especially in hard-to-reach areas.
Endeavour and its crew of six will leave the space station late on Sunday night, and is set to land during the pre-dawn hours of Wednesday during a rare touchdown in darkness.
 
While NASA's role in space station construction is over, the Russian Space Agency may add another chamber 49 or two in years to come.
 
The Russians also will continue to provide rides to and from the orbiting lab for US astronauts until private companies in America are able to take over the job.
 
An Ancient Village Unearthed 50 in Yunnan
Chinese archaeologists have discovered an ancient village site that contains many relics 51, including grave and ruined buildings. The historic site is in Chengjiang County in Southwestern Yunnan Province.
 
According to experts, it's the first discovery of a large-scale village site in Yunnan province. The discovery also fills a gap in China's knowledge of village relics in ancient Yunnan culture.
 
Excavation 52 of the relics started last November. So far, archaeologists have cleared an area of 1,900 square meters and uncovered more than 20 houses and several column caves.
 
Jiang Zhilong, a researcher at the Yunnan Archaeology 53 Research Institute, explains the significance of the discovery.
 
"From these excavated 55 relics, we can preliminarily estimate that their age dates back to around 2500 BC earlier than what we already knew about Yunnan culture. Therefore, this archaeological excavation helps us make some progress in mapping the origins and development of Yunnan culture."
 
Pottery 56 and items made of bone, stone and copper 57 were also found at the site.
 
Research about the site continues at a steady pace.
 
Ancient Tombs Found in Xinjiang
Meanwhile, in China's Xinjiang Uygur Autonomous 58 Region, Archeologists have found a group of ancient tombs in Aletay.
 
Archeologists have found 61 tombs so far, with internal structures varying from each other.
 
About 60 pieces of funerary items dating back to 2000 to 3000 years ago were also unearthed.
 
Yu Jianjun is leader of the excavation team and associate researcher in the Institute of Archaeology of the Xinjiang Uygur Autonomous Region.
 
"This site is the first of its kind to be found in this area. These findings are of great importance to the research into the nomadic 59 culture of Aletay area, including ancient grassland 60 culture. It is certain that we will find something amazing as we explore and excavate 54 deeper."
 
Archeologists say the unearthed pottery pots and bronze wares 61 shared many similar characters with those used in central China, thousands of kilometers away from the excavation site.
 
Small and Medium Enterprises Face Difficulties
Small and medium enterprises in southern and eastern China are finding that severe financing problems are making them difficult to survive. Experts have called for the establishment of more financing channels to put investment directly in the struggling enterprises.
 
Xiangwei has more.
 
China's Ministry of Commerce revealed in its latest survey that 25% of small and medium enterprises sampled in east China's Wenzhou City are running in the red. Another survey conducted in 16 provinces says the situation is even worse than that during the 2008 financial crisis.
 
Luo Zhongwei, Director of the Small and Medium Enterprise Research Center under China's Academy of Social Sciences, says these enterprises are more fragile than the large ones during the current period of tight monetary policy.
 
"With the change of the market and the overall economic condition, small and medium enterprises are more likely to fall down without sufficient capital turnover 62. At this time I think commercial banks should give more support, but the reality runs counter to this."
 
According to media reports, commercial banks have raised the borrowing rate for state-owned companies and large private ones by around 10% since January, while for small and medium ones the rate has increased by 50% or more.
 
Still, it's difficult for small and medium enterprises to get credit. And some of them have to turn to private loan companies, which may demand an aggressive interest rate of 100%.
 
Luo Zhongwei says the problem could result in more severe conditions if not properly addressed.
 
"It would stir up the financial market, and threat social stability."
 
Ninety-nine per cent of enterprises in China are small and medium sized, numbering around 10 million. They provide 75% of jobs in cities and towns, and 66% of inventions. They also account for 60% of the country's gross domestic product and 50% of tax revenue.
 
Experts say it's time for small and medium enterprises to abandon the traditional mode of development, which is to enlarge production scale and output, but instead focus more on innovation. However, that also means more investment.
 
Lin Ying is General Manager of a knitting company in Wenzhou.
 
"We can't afford any major innovations. It's too risky 63. Instead, we have to keep the cash flow in hand and wait for favorable policies. I don't think the government would let so many small and medium enterprises down."
 
Local governments in Zhejiang Province, where Wenzhou is located, are trying to help by building an online platform connecting banks, guarantee companies and the small and medium enterprises in need. But whether this will produce the desired effect is still unknown.
 
Meanwhile, experts have called for the establishment of more financing channels, such as venture capital, trust fund and private equity 64 fund, which can invest directly in small and medium enterprises.
 
For CRI, this is Xiangwei.
 
Water Shortage Poses Grave Concern
 
Statistics show that the seasonal 65 water levels in the middle and lower reaches of the Yangtze River have dropped to historical lows. This year, it is at the lowest level in recorded history. Water shortage in more than 1,000 reservoirs in Central China's Hubei Province has made drinking water difficult for half-million people.
 
An article from China Daily argues that the government should attach strategic importance to the water problem in this region as it is the country's most developed area, and one of the most important grain production bases with the densest 66 population.
 
The author suggests it is high time that the government organized experts to find out the real cause of the problem and ascertain 67 whether or not the situation will deteriorate 68. If so, the government needs to pool resources for solutions.
 
The article goes on to say that it will be impossible for North China to rely on the south to quench 69 its thirst if seasonal lack of water further expands or becomes permanent in southern China.
 
The article suggests cities along the Yangtze River to think of other long-term options, such as desalination 70 of seawater and more efficient use of existing water resources, to meet the increasing demand for water consumption.
 
The article sites an example of desalinated seawater supply in the coastal city Tianjin in North China. The cost is high but much lower compared to that of diverting water from the south to the north.
 
The article reaches the conclusion that water consumption efficiency and water saving measures should be taken into consideration in urban planning, so urban planners and decision-makers at all levels must be visionary and act at once. The central government must consider a national strategy to ward 7 off an approaching water crisis.