Hu calls on Chinese, Slovakian business people to step up co-op

Chinese President Hu Jintao speaks at a breakfast meeting for business people from China and Slovakia in Bratislava, capital of Slovakia, June 19, 2009. Slovakian President Ivan Gasparovic and Hu Jintao attended the breakfast meeting on Friday. (Xinhua/Lan Hongguang)

BRATISLAVA, June 19 (Xinhua) -- Visiting Chinese President Hu Jintao on Friday called on business people from China and Slovakia to join hands in promoting bilateral economic and trade cooperation.

At a breakfast meeting for business people from both countries, Hu put forward a five-point proposal for strengthening bilateral economic and trade cooperation.

Chinese President Hu Jintao (L) speaks at a breakfast meeting for business people from China and Slovakia in Bratislava, capital of Slovakia, June 19, 2009. Slovakian President Ivan Gasparovic and Hu Jintao attended the breakfast meeting on Friday. (Xinhua/Lan Hongguang)

First, both sides should further promote bilateral economic and trade cooperation with an eye to the future.

Second, they should strengthen communication and further improve governmental services so as to provide better facilities for bilateral business cooperation.

Third, they should explore their own advantages to push forward bilateral cooperation in some key areas.

Visiting Chinese President Hu Jintao (L) meets with Slovakian President Ivan Gasparovic for talks in Bratislava, capital of Slovakia June 18, 2009.(Xinhua Photo)

The Chinese government encourages Chinese enterprises to take part in Slovakia's infrastructural construction covering energy, highways, railways and telecommunications, Hu said.

He said the Chinese government also encourages both sides to conduct substantial cooperation in research and development, labor, project engineering and new energy.

Chinese President Hu Jintao (L) meets with Slovak Prime Minister Robert Fico in Bratislava, capital of Slovakia, June 19, 2009.(Xinhua/Lan Hongguang)

Fourth, both sides should give priority to enterprises to realize reciprocity and win-win results.

Fifth, they should further realize a sound growth of substantial cooperation with pragmatic coordination and oppose protectionism.

President Ivan Gasparovic said Slovakia will strengthen bilateral economic cooperation of mutual benefit and jointly fight the global financial crisis.

He said he hoped the two countries will strengthen cooperation in such fields as energy, agriculture, medicine, machinery, technologies, environmental protection and tourism, and make Slovakia a bridge linking China and the European Union, and an important destination for Chinese investment.

Gasparovic said he was convinced that the success of the two economies and bilateral traditional friendship would further promote the growth of bilateral reciprocal cooperation.

Chinese President Hu Jintao (2nd L) meets with Speaker of the Slovak National Council Pavol Paska (3rd R) in Bratislava, Slovakia, June 19, 2009.(Xinhua/Rao Aimin)

Hu is currently on a three-nation trip. He arrived in Bratislava on Thursday from Moscow after concluding a state visit to Russia.

Before that, he attended a summit of the Shanghai Cooperation Organization and a meeting of BRIC countries, namely Brazil, Russia, India and China, in central Russia's Yekaterinburg.

The Chinese president will also visit Croatia.

U.S. Fortifies Hawaii to Meet Threat From Korea

WASHINGTON -- The U.S. is moving ground-to-air missile defenses to Hawaii as tensions escalate between Washington and Pyongyang over North Korea's recent moves to restart its nuclear-weapon program and resume test-firing long-range missiles.


Associated Press

In anticipation of a North Korean missile test, the U.S. is positioning off Hawaii a floating radar, like this one shown in a 2005 Boeing photo.

Defense Secretary Robert Gates said on Thursday that the U.S. is concerned that Pyongyang might soon fire a missile toward Hawaii. Some senior U.S. officials expect a North Korean test by midsummer, even though most don't believe the missile would be capable of crossing the Pacific and reaching Hawaii.

Mr. Gates told reporters that the U.S. is positioning a sophisticated floating radar array in the ocean around Hawaii to track an incoming missile. The U.S. is also deploying missile-defense weapons to Hawaii that would theoretically be capable of shooting down a North Korean missile, should such an order be given, he said.

"We do have some concerns if they were to launch a missile...in the direction of Hawaii," Mr. Gates said. "We are in a good position, should it become necessary, to protect American territory."

In another sign of America's mounting concern about North Korea, a senior defense official said the U.S. is tracking a North Korean vessel, the Kang Nam, suspected of carrying weapons banned by a recent United Nations resolution.

The U.S. moves come as strains intensify between the U.S. and North Korea. Earlier this year, Pyongyang test-fired a missile that flew over Japan before crashing into the Pacific Ocean. On May 25, Pyongyang detonated a nuclear device at a test site near its border with China, drawing rare rebukes from Moscow and Beijing.

President Barack Obama and South Korean President Lee Myung-bak met earlier this week at the White House and agreed to launch a new effort to persuade North Korea to give up its nuclear arsenal. In a joint statement, the Obama administration also agreed to maintain the longstanding U.S. vow to defend South Korea from a North Korean attack.

Japan's Yomiuri newspaper reported Thursday that North Korea would launch a long-range Taepodong-2 missile at Hawaii from the Dongchang-ni site on the country's northwestern coast on or close to July 4. In his comments to reporters, Mr. Gates didn't directly address the Japanese report or say whether the U.S. had evidence that North Korea was preparing for a launch.

Some U.S. officials have said satellite imagery shows activity at a North Korea testing facility that has been used in the past to launch long-range missiles. On a trip to Manila earlier this month, Mr. Gates said the U.S. had "seen some signs" that North Korea was preparing to launch a long-range missile. But he cautioned, that "at this point, its not clear what they're going to do."

Getty Images

North Korean soldiers raise their fists in the air as they hold a rally to denounce the United Nations Security Council's resolution on sanctions at the Kim Il Sung square in Pyongyang on June 15, 2009.

The stakes would be high for both North Korea and the U.S. in the event of a missile launch.

North Korea would be attempting to demonstrate that it was capable of striking the U.S., but many U.S. defense officials are highly skeptical that North Korea has a missile capable of reaching Hawaii, which is more than 4,500 miles away from North Korea.

North Korean long-range missiles have failed three previous tests in the past 11 years. In the most notable North Korean misfire, a Taepodong-2 missile that Pyongyang launched on July 4, 2006, imploded less than 35 seconds after taking off.

The Obama administration, meanwhile, would have to choose whether to attempt to shoot down the missile, a technically complicated procedure with no guarantee of success. An American failure would embarrass Washington, embolden Pyongyang and potentially encourage Asian allies like Japan to take stronger measures of their own against North Korea.

Maj. Gen. Robert G.F. Lee, who as Hawaii's adjutant general directs the state's Army and Air National Guard, said the military "certainly has enough assets to protect the state of Hawaii."

Last week, the U.N. Security Council unanimously adopted a resolution expanding sanctions and inspections against North Korea in response to the nuclear test. The resolution bars North Korea from exporting a wide range of weaponry, and "calls upon" all U.N. states to search North Korean vessels, with their consent, for nuclear-related material and other contraband.

The senior defense official said the U.S. would seek to have the North Korean ship suspected of carrying banned arms searched before it reaches its final destination, believed to be Singapore. The ship left North Korea on Wednesday. The official said U.S. or allied personnel wouldn't board the ship by force and would search the ship only with the permission of its crew.

North Korea has said it would view any efforts at interdiction as an act of war, and some U.S. officials worry North Korean vessels would use force to prevent U.S., Japanese or South Korean personnel from searching their ships, potentially sparking an armed confrontation.

More broadly, the Obama administration has recently begun re-evaluating the entire premise of American diplomatic outreach to North Korea. Successive U.S. administrations dating back to the Clinton White House have struck deals with North Korea that traded financial assistance, food and power generators for North Korean promises to shut down its nuclear program. Each time, North Korea eventually backed out of the deals.

Pyongyang's refusal to honor its agreements has persuaded the Obama administration that North Korea was unlikely to ever voluntarily give up its nuclear weapons. That has led the administration to reject the idea of offering North Korea additional aid in exchange for new North Korean vows to abide by agreements it has repeatedly abrogated.

Many Obama administration officials are also skeptical of reopening the so-called six-party talks with North Korea, which also involve China, Japan, Russia and South Korea.

Instead, the administration is trying to persuade China to take a stronger line with North Korea, a putative ally that is deeply dependent on China. U.S. officials hope China will help search and potentially board suspicious North Korean vessels, but China has been noncommittal.

Asked if China had finally accepted U.S. assessments of the threat posed by North Korea, Mr. Gates demurred. "I think that remains to be seen," he said.

—Stu Woo contributed to this article.

理大：確保不再擺烏龍‧新生入學後對付失職者

（檳城）馬來西亞理科大學校長丹斯里祖基菲里說，理大優先處理新生入學的事宜後，才考慮採取適當的行動對付涉錄取學生擺烏龍的職員，確保事件不會重演。

他說，錄取新生的事宜從今日（週五，6月19日）開始，接下來的2週，校方接受報讀學生的上訴。

祖基菲里週五與大馬建築師公會簽署一項綠化建築物指標的合約備忘錄後，這麼說。

早前，高等教育部長拿督斯里莫哈末卡立說，理科大學入學系統出錯風波調查報告已完成，它是屬人為錯誤導致，高等教育部已指示理大對犯錯的職員採取適當行動。

祖基菲里說，馬來西亞理科大學正在等待高教部的調查報告書，以便採取適當的行動對付涉及的職員，不過，理大當務之急是處理新生入學的事宜。

讚成STPM改為單元式考試制

詢及教育部於2011年修改大馬高級學校文憑（STPM）制度，改為單元式考試制度時，祖基菲里說，這項制度可改變“教育只是為了考試”的觀念，進而落實教育的真正使命。

他歡迎大馬考試委員會作出上述的正確決定，事實上，教育並非以考試為主，因此採取新的制度符合教育的意義及用意。

他說，不過，教育部在實施上述制度時須謹慎，否則將引起了各項課題，如教育常被政治化。

國立大學新生名單公佈‧理大“落榜生”全錄取

（布城）高等教育局總監拿督拉丁烏馬宣佈，4574名在理科大學“烏龍招生”事件中受影響的學生中，有4424人（96.7%）已成功通過學生入學管理組（UPU）被其他國立大學錄取，其餘150名則會由理大重新吸納。

拉丁表示，學生入學管理組不是因為這4424名學生面對“烏龍招生”問題，而特別優待他們進入其他大學。

理大重新吸納150人

他在新聞發佈會上公佈學生入學管理組（UPU）處理的大學錄取的詳情時強調，這些學生都是符合入學資格的學生，而且是根據績效（merit）才被其他大學錄取。

他說，另外150名學生從一開始就沒有向學生入學管理組提出申請，因此他們無法通過此組被其他大學錄取。

“不過，由於他們原本已經過理大篩選出來的符合資格學生，因此，理大將會吸納他們，以填補空缺。”

他深信，這150名學生都會被理大重新吸納，因為一般上都會有一些已成功被錄取的學生，在最後一刻放棄學額而出現空缺。

國立大學錄取40366人‧土著69%華人25%印裔6%

今年共有4萬366名大馬高級學校文憑和大學預科班或同等資格學生被錄取進入本地國立大學，其中土著佔2萬7829人（68.9%）、華人佔1萬116人（25.1%）和印裔佔2421人（6%）。

拉丁烏馬指出，在成功被錄取的學生中，土著的成功錄取率達63%（2萬7829人）、華人的錄取率是80.4%（1萬166人）、印度人的錄取率是56.4%（4292人）。

他透露，今年提出申請的總人數是有6萬1027人，只有4萬8133人（78.9%）符合入學最低資格。

拉丁指出，學生可以從今日（週五，6月19日）早上11時開始通過網站http://jpt.uum.edu.my、http://www.jpt.utm.my和http://upu.mohe.gov.my，或者是熱線03-88835858及求助電話03-88835848，或者通過手機短訊方式，查詢錄取情況。

他也促請被錄取的學生在7天內（25日之前），回覆當局是否接受入學獻議。申請失敗的學生可在28日之前，必須通過電子上訴（e-rayuan）進行。

是否接受入學獻議‧成功申請者須25日前回覆

高等教育局總監拉丁促請那些已成功被各國立大學錄取的學生儘早回覆是否接受入學獻議，以便申請失敗的學生有機會填補他們留下的空缺。

只有申請失敗的學生才可以提出上訴，上訴期共10天。至於成功申請者只能答覆接受或拒絕入學獻議，他們不能因為對科系和大學分配感到不滿意而上訴。

他說，各國立大學將於週五開始發出正式入學獻議信給成功申請者，他們必須在截至25日的7天內給予答覆。學生可以從各國立大學網站上下載有關的入學獻議信。

他說，當局學生入學管理組也會從週五起至28日，在布城高等教育部E9座一樓設立一個查詢柜台，以方便學生作出查詢。

拉丁也指出，電子上訴將從週五中午12時開始操作。

他說，各大學是根據新生入學登記後所出現的科系或大學學額空缺，來決定一名上訴者的申請。若上訴者至31日都沒有收到答覆，意味著其上訴申請已失敗。

學額比去年增0.5%‧大學訂27及28日報到

拉丁表示，大學生向各國立大學報到的日期已訂在6月27和28日。

此外，拉丁也透露，今年各國立大學提供的學額比去年（4萬184個）提高0.5%，這主要是因為大學內已增加69個新科目如化學工程、教育、管理和企業、實用科學、衛生科學、英文文學、音樂和藝術等。

研究型大學預料增加

高等教育局總監拉丁透露，大馬的研究型大學預料會增加，因為目前已有2家大學即工大（UTM）和馬來西亞國際回教大學（UIAM）已向高等教育局申請提昇為研究型大學。

他說，此外，另有3政府相關公司的大學，即國油大學、國能大學及多媒體大學也正朝向提昇為研究型大學邁進。

他說，目前大馬已有四間研究型大學，它們是理大、馬大、國大和博大。

今年被錄取的男女學生比例是35%對65%，由於大學是以績效方式來錄取學生，因此平衡男女人數是不可能的。

以下管道可查詢大學錄取情況

●網站http://jpt.uum.edu.myhttp：//www.jpt.utm.myhttp://upu.mohe.gov.my

●熱線03-88835858

●求助電話03-88825848

●手機短訊服務UPU RESULT（NO.KP）傳至15888

女傭周休一天迴響‧代理協會：印尼若暫停輸出‧應准中國女傭來馬

（吉隆坡）針對印尼計劃暫時停止輸出印尼女傭到馬工作，大馬外國女傭代理協會認為，在沒有辦法的情況下，政府應開放其他國家包括中國女傭來馬。

女傭代理協會主席拉惹祖基菲里強調，他們不願看到類似情況發生，因此大馬政府和印尼當局應討論如何解決問題，因為暫停供應影響深遠。

“誰會成為受害者？是雇主本身，他們沒有女傭幫忙做家務、照顧孩子長者，大馬和印尼的代理公司也遭殃，因為大家都沒有生意可做。”

詢及國內有反對開放中國女傭來馬的聲浪，祖基菲里表示，華裔雇主無需過度憂慮，也不能假設中國女傭會破壞家庭和諧。

“很多馬來人家庭也聘請印尼女傭，如果擔心年輕女傭會引起問題，雇主可以選擇年齡35歲或以上的中國女傭來幫忙照顧家庭。”

此外，女傭代理協協會也希望政府積極取締那些沒有注冊的本地代理公司，和停止允許個人自行從印尼聘請女傭，避免素質參差不齊的女傭進入大馬。

“舉例說，一名女傭每月基薪約550令吉，這些非法公司可以壓低價格到450令吉左右，但女傭的素質可能會有問題，一旦在3個月試用期逃跑後，雇主要自行承擔所有費用，報警還要被罰款250令吉。”

美國‧支持率下降‧奧巴馬蜜月期結束

（美國‧華盛頓）美國全國廣播公司（NBC）／《華爾街日報》週三（6月17日）公佈的民調顯示，雖然民眾對國家經濟的樂觀態度上揚至4年來新高，但對奧巴馬政策的疑慮也升高。

NBC首席白宮通訊員和政治編輯托德在NBC晚間新聞上直言：“奧巴馬總統的蜜月期已經結束，但這並不是個人問題，而是專業性問題，因為現在人民開始會對總統的一些政策行動作出評價。”

以下是一些調查數據：

●施政滿意度，較前次調查下跌5%至56%
●69%對聯邦政府在經濟上的干預感到不安
●53%不贊成政府接手通用汽車和克萊斯勒股權
●58%希望政府致力縮減預算赤字，而不是專注於刺激國家經濟
●46%對明年經濟展望表示樂觀

韓國‧韓報導：金正日健康惡化‧朝透過中國購醫療設備

（韓國‧首爾）韓國《朝鮮日報》今日（週五，6月19日）報導，朝鮮最高領導人金正日的健康急速惡化，平壤政府正嘗試透過中國，輸入昂貴的醫療儀器。

報導指出，朝鮮同時也想要買一架緊急直升機。

各界咸信金正日去年8月中風，但最新情況並未能證實。朝鮮的情治部門拒絕評論這一報導。

《朝鮮日報》報導稱，67歲的金正日正在平壤的峰火醫院接受治療。此院駐北京的人員，正在嘗試購買一些被禁入口的醫療儀器（這些可能因為與核子儀器有關而被禁）。

除了可能跟武器有關的設備之外，聯合國決議案並未禁止醫療設施。

此報引述一名北京消息人士稱，“金正日的病情顯然很嚴重”。

朝韓磋商開城問題

與此同時，朝鮮和韓國週五恢復磋商開城工業園區未來命運，首爾官員對會談將有正面進展表示樂觀。

韓國統一部韓朝會談常務代表金泳卓在通過軍事分界線前向記者說：“週五天氣非常好，因此會談也會順利。”

中國‧今年4千萬人失業‧中國訓練待業者幫傭

（中國‧北京）中國《新京報》今日（週五，6月19日）報導，中國政府估計，今年全國待就業人口將超過4千萬人。政府解決問題的方法之一是，訓練更多人成為家庭幫傭。

此前，政府已一再警告，全球金融危機對以貿易為主的中國經濟帶來重創。官方媒體報導，隨著中國在北美及歐洲的傳統市場萎縮後，今年初已經有2500萬民工失業。

首季成長率僅6.1%

中國表示，從2002年起一直達到雙位數經濟成長率的中國，去年的成長率下跌至9%，今年首季的成長率更僅有6.1%。

報導稱，為了因應持續增長的失業率，政府推出訓練大批家傭的計劃。

《新京報》報導，中國商務部、財政部、全總三部門因而計劃聯合推出“家政服務工程”，對待就業人口進行培養，並將其引入家政服務業。2009年是該工程實施的第一年，計劃幫助20萬人。

家傭短缺1千萬人

報導指出，據估計，中國的家傭短缺達到至少1千萬人。

與此同時，約60%的失業族是中年人，符合一般家傭的年齡層。

在中國，隨著中產階級家庭日益增多，加上這類家庭都是雙薪制，因此請得起家傭與需要家傭的家庭也與日俱增。

中國‧網民揭發‧浙江又有淫官姦少女

（中國‧北京）中國近期屢爆淫官醜行，繼貴州習水縣官員嫖幼女案、四川宜賓某局長嫖少女案及早前一審宣判的烈女殺淫官案後，浙江又傳出有地方官員強姦少女。

此案由網民揭發，已引起各界關注，各網民又再度展開人肉搜索。據悉當地警方已立案偵查，初步確定有兩名幹部涉案。據《今日（週五，6月19日）早報》報導，溫州論壇週三（6月17日）晚有網民發帖稱蒼南縣王姓副局長在賓館裡強姦少女，受害人僅14歲。因該網民未點出“王副局長”的任職單位，引起網民熱議，有網民爆料稱是縣統計局。

週三下午，此報派人到蒼南縣統計局求證，要求與當局王姓副局長會面，雖然其辦公室門口顯示其在 崗，但敲門無人應。後來當局另一位副局長說：“他請假了，說是母親生病，要去溫州照顧。這週就沒見他上班了。”據悉，王1個月前才調到該單位，主要負責農 調隊工作，之前曾任蒼南縣紀委黨風廉政室主任。

警方沒有證實王副局長是否涉案，但確認6月12日有宗涉及未成年人被強姦的案件。案情與網民爆料的部份內容吻合，如事發地點確實處於蒼南縣城某酒店，受害者也是未成年少女。此外，被警方查獲的涉案者有兩人，都是單位幹部，其中一人也姓王，另一人姓周。

台灣‧長榮客機廁所醜聞‧機長偷拍空姐換衣

（台灣‧台北）台灣長榮航空公司客機廁所傳出偷拍醜聞！

台灣媒體報導，長榮航空一名機長竟在客機廁所安裝微型攝影機，偷拍空姐換衣服，被人發現，遭公司解僱。

據悉，發生偷拍醜聞的班機編號為BR167，由日本大阪飛往台北，一名39歲的金姓機長週一執勤完畢，搭乘這班飛機返台，有5名空姐和這名機長同搭商務艙。

當時，空姐陸續前往廁所換衣服，但是機長進出廁所的頻率異常頻繁，如果有空姐停留在廁所時間內稍久一點，這名機長就會緊張的猛敲門。

面紙盒內發現攝影機

他怪異的行徑引起機警的空姐懷疑，立刻前往廁所仔細檢查，結果在廁所的面紙盒內，發現一台小型的數碼攝影機，空姐更從錄影資料當中，看出是這名金姓機長所有，立刻當場舉發偷拍惡行。

當時，還有9名旅客在商務艙，到底有沒有旅客受害，就等航空公司給個交代。長榮航空已勒令機長辭職，這起國內首次的機上偷拍事件，但台灣消基會和律師呼吁，長榮應完整查明事件，不應私了，而且要公開向社會大眾道歉。

美國‧金融海嘯動盪一年拖累‧15王室身家縮水779億

（美國‧華盛頓）美國《福布斯》雜誌公佈今年最新的王室富豪榜，全球15個最富有王室經歷金融危機動盪一年，身家共縮水220億美元（約馬幣779億令吉），榜首的泰王普密蓬身家就比去年少50億美元（約馬幣176億8300萬令吉）。

泰王連續第二年上榜

泰王普密蓬連續第二年登上王室富豪榜首位，他身家達300億美元，但由於旗下地產和股票出現雙位數跌幅，身家縮水50億美元，加上泰國政局不穩重挫旅遊業，亦影響其收入。

英女王伊麗莎白二世的身家達4億5000萬美元，比去年大幅縮水2億美元，原因是樓市和股市下跌，加上其珍藏的珠寶和藝術品跌價。

雖然部份王室身家疑因涉及馬多夫騙局而縮水，例如荷蘭女王貝婭特麗克絲和她的兒子就傳聞投資了1億美元在馬多夫的基金，但各王室的損失主要來自油價、地產和股市下跌。

相比去年金融海嘯前，全球15個富有王室身家今年共縮水220億美元，下降17%，至1090億美元，其中只有摩洛哥國王穆罕默德六世的身家有上升，他透過出售商品磷大賺一筆。

另外，汶萊和卡塔爾兩個王室身家僥倖能保持不變；日本和西班牙王室的財富則不入前15名。

新加坡‧質疑獅城買豪宅能力‧中國網友斥李連傑忘本

（新加坡）中國網友痛斥李連傑忘本，質疑他在獅城買豪宅的能力。

據《商業時報》報導，李連傑和妻子利智5月在武吉知馬一帶的明才坡，買下一棟價值1980萬元（約馬幣4800萬令吉）的優質別墅。

這棟永久地契豪宅面積2萬2723平方尺，即每平方尺871元。優質別墅屬本地高級私宅中的精品，本地大約只有2400棟這類產業。

另外，也有可靠消息指出，李連傑已經入籍新加坡。對此，移民與關卡局受詢時說，基於保護個人隱私的理由，不便證實消息。

李連傑買樓和入籍新加坡的消息一傳開，立刻引起中國網民的議論紛紛。

斥改變國籍對不起祖宗

對於李連傑入籍新加坡的傳言，中國網友紛紛譴責李連傑忘本，聲稱中國的明星有了名氣，就會嫌棄自己的祖國，移民到別處。

新浪網上出現許多類似的留言如︰“改變國籍猶如改姓，對不起祖宗！”，一名中國網友語重心長地寫道，李連傑之所以有今日的成就，也是得到國家的栽培和人民的支持，應該有責任宣傳愛國的精神。

儘管批評聲不斷，但在一則新浪網的調查中顯示，45%的網友認為這是李連傑的權利，42%認為會影響他在國人心目中的印象。

Decline in world economy moderating: IMF's Lipsky

BODRUM, Turkey, June 19, 2009 (Reuters) — The International Monetary Fund is likely to revise its 2010 growth forecast for the world economy up with signs the rate of decline in global output has moderated, a senior IMF official said on Friday.

Addressing a Turkish business conference in this southern Turkish resort, IMF First Deputy Managing Director John Lipsky, however, warned it was far too early to declare victory, with financial conditions far from normal and the world economy still in recession.

"While the latest data point to a slowing of the global contraction, there is still great uncertainty regarding the timing and pace of economic recovery," he said in prepared remarks to the Turkish Industrialists' and Businessmen's Association.

However, Lipsky said signs are emerging that the rate of output decline has moderated, financial conditions have improved, confidence is recovering gradually and indicators of future production and demand have firmed.

Given this backdrop, "I expect that in the coming weeks we will revise our growth projections modestly upward, mainly with regard to 2010," he said.

Turning to the economy of his hosts, Lipsky said Turkey may be on the verge of recovery but its rising fiscal deficit could hamper the rebound in growth.

He said consumer confidence in Turkey has rebounded strongly and manufacturing and employment have picked up, but Turkey's fiscal gap was a concern.

"The rising fiscal deficit and weakening loan quality could -- if not addressed forcefully -- cloud the growth outlook, including by curtailing banks' ability to extend credit," he said.

Lipsky and other IMF officials have met Turkish Treasury officials over the past two days, prompting market gains on hopes the country was close to an IMF loan accord. But an IMF official told Reuters on Thursday a deal had not been reached, reining in market optimism.

The IMF is scheduled to present updated forecasts for the world economy on July 7 in Washington. In its previous forecast in April, the Fund projected the world economy would contract 1.3 percent this year in the deepest recession since World War Two and then rebound to grow at 1.9 percent next year.

SLUGGISH RECOVERY

Lipsky said the recovery next year will be sluggish, with activity in the world's advanced economies likely to revive only gradually, weighed down by financial deleveraging, restrained credit growth and weak household income growth.

Meanwhile, emerging markets will be unable to return to trend growth while advanced economies are still underperforming.

"As a result, output gaps and unemployment rates in most economies should continue rising through 2010," Lipsky warned.

He emphasized that policies need to focus on a sustained recovery, starting with reviving the financial sector.

So far, progress overall in nursing banks back to health had been slow and uneven, while little had been done to resolve the problem of toxic assets on banks' balance sheets.

"In order to lay the ground for a revival of bank credit growth, the near-term focus of policies should continue to be on restructuring weakened financial institutions by cleansing banks' balance sheets of impaired assets, assessing bank viability, and ensuring bank recapitalization where needed," he said.

In addition, fiscal policy in advanced economies and in many emerging market countries should remain expansionary at least through 2010, and additional stimulus may become necessary, Lipsky said. Meanwhile, monetary policy should remain supportive until a sustained recovery takes hold, he added.

But Lipsky also said widening fiscal deficits in many industrial countries were a growing concern, especially with government costs expected to rise due to population aging and more people needing healthcare.

Still, even as policies are focused on ending the recession, authorities should start planning exit strategies, especially the extraordinary government intervention in the financial sector, he said.

Central banks will need to devise plans to exit from unconventional measures and forestall concerns that inflation pressures could be allowed to rise, Lipsky added.

Sony CEO says restructuring steps on track

TOKYO, June 19, 2009 (Reuters) — Sony Corp Chief Executive Howard Stringer said the loss-making Japanese electronics conglomerate's turnaround efforts, which include job cuts, plant closures and a management reshuffle, are advancing well.

Sony's TV sets are displayed at an electronic shop in Tokyo

Sony last month forecast a second straight year of losses as the global recession batters demand for electronics. To get back to growth, it is implementing far-reaching restructuring such as reducing its workforce by about 16,000 people and closing eight of its 57 manufacturing sites.

"We are seeing steady progress and are working to reduce costs throughout the Sony group by more than 300 billion yen ($3 billion)," Stringer told the company's annual shareholders' meeting on Friday.

He said the company was determined to fight back in the market for networked electronics, where it lags behind Apple Inc's iPod and faces stiff challenges from Microsoft Corp's Xbox 360.

Sony has set up a new business group focusing on network-oriented products and services, such as PlayStation video game operations and Vaio personal computers.

"In the 20th century, this company created great champion products ... In the 21st century, other companies took our hardware like the Walkman and added network capability and turned it into the iPod," Stringer said.

"We are not going to be beaten again in the network age."

Sony used to rule the portable music player market with its Walkman and the video game industry with PlayStation consoles. But 30 years after the launch of the Walkman and 15 years since the debut of the PlayStation, the iPod and the Xbox 360 are eroding Sony's market share.

In a bid to boost its products' appeal in the network age, in which gadgets are becoming interconnected and music and video content is delivered online, Sony said last year it aimed to make 90 percent of its electronic product categories network-enabled and wireless-capable by March 2011.

The company, which competes with Samsung Electronics Co Ltd in LCD TVs and Canon Inc in digital cameras, has also set up a business group to focus on TVs, cameras and camcorders.

Sony shares closed up 2 percent at 2,525 yen following Stringer's comments, outperforming a 0.9 percent rise in the benchmark Nikkei average.

Welsh-born Stringer took the helm at Sony in 2005 vowing to deliver growth and get its various divisions to work closely together to compete with new rivals.

His efforts have been hampered by a stronger yen and sluggish demand for its electronics products, which include Bravia LCD TVs and Cyber-shot digital cameras.

In response to a shareholder who asked whether Sony would be able to adapt to a changing world despite its size and avoid the fate of General Motors, Stringer pointed to the firm's ongoing restructuring as proof of its willingness to change.

"Be assured, all of you: Unlike GM, we have a solid balance sheet, and we are not burdened by a significant debt," Stringer said.

"One of the reasons we made these transformational changes is so that we can respond more swiftly to all that's happening around this, not just the economy, but in the competitive world."

(Additional reporting by Nathan Layne; Editing by Hugh Lawson)

Bailed-out banks' CEOs used jets for personal use: report

June 19, 2009 (Reuters) — Chief executives of some banks that received federal money, including Bank of America Corp, Morgan Stanley and Regions Financial Corp, used company jets for their personal use, the Wall Street Journal reported on its website.

Pedestrians walk past a Bank of America branch in New York May 8, 2009. REUTERS/Lucas Jackson

Flight records showed many occasions when banks receiving federal money flew their planes to destinations near resorts or executives' vacation homes in Europe, Mexico, the Caribbean, south Florida and Aspen, according to the paper.

"We are implementing a new policy in 2009, under which personal use of aircraft will not be permitted," a Bank of America spokesman told the paper, but declined to comment on specific trips.

In some cases, it was clear that bank executives were traveling for personal reasons; for other flights, many of which were over weekends or holidays, the passengers and purpose couldn't be established, the paper added.

A spokesman for Morgan Stanley declined to comment to the paper on individual flights, but said its policy was to allow CEO John Mack personal use of corporate jets, with the cost "fully disclosed" in annual proxy filings.

A Regions spokesman also declined to comment to the paper on the trip or the cost estimate, but said all travel on company jets "either for personal or business was within our policy."

The banks could not be immediately reached for comment by Reuters.

(Reporting by Chakradhar Adusumilli in Bangalore, Editing by Ian Geoghegan)

Air France to compensate crash victims' families

PARIS, June 19, 2009 (Reuters) — Air France will compensate the families of the victims of a June 1 crash in which 228 people died, the company's chief executive said on Friday.

Flight AF 447 from Rio de Janeiro to Paris crashed into the Atlantic after flying into stormy weather. The causes of the crash are not known. Brazilian and French ships are still searching the ocean for debris and bodies.

"For now we are going to concentrate on the first advance that will be paid for each victim, approximately 17,500 euros ($24,420)," Air France CEO Pierre-Henri Gourgeon said on RTL radio.

"The lawyers of our insurers in every country are talking to the victims' families to try and organize this advance payment," he said.

Gourgeon presented the payments as a compassionate gesture from the airline, not an admission of liability.

Passengers from 32 nationalities died in the crash of the Airbus 330. Among them were 61 French people and 58 Brazilians.

Asked how the probe into the causes of the disaster was going, Gourgeon echoed words of caution from French investigators who said this week they were getting closer to understanding what happened but had no certainties yet.

The investigators said it was not possible at this stage to know whether unreliable speed readings from the aircraft's sensors had contributed to the crash.

The aircraft's flight data recorders or "black boxes" have not been found. Gourgeon said he had not lost hope that they would be located.

China's Money Tide Not Rolling Out Yet

BEIJING -- Chinese policy makers will soon need to start thinking about how to rein in their extraordinary stimulus measures, some economists say, as evidence mounts that it is succeeding in keeping growth going amid the global slowdown.

Governments around the world have been pushing cash through their economies, and China is no exception. In recent weeks, that global flood of money has started to raise investor worries about future inflation and official debt, forcing the U.S. and others to explain how they will unwind enormous injections of liquidity.

Unilever Indonesia Rides to First Place

JAKARTA, Indonesia -- PT Unilever Indonesia, the publicly traded local arm of the Anglo-Dutch consumer-goods giant, knows how to make money in Indonesia through good times and bad. And thanks to its ability to satisfy consumers' needs in this nation of 240 million people even as economic growth slows, it took top honors as the most-admired company in Indonesia in the Asia 200 survey of subscribers of The Wall Street Journal Asia and other businesspeople.

Unilever regained the top spot in the list of most-admired Indonesian companies, edging out PT Astra International, a diversified group that distributes Toyota Motor Corp. vehicles. In the prior survey, Astra International had ranked most-admired overall, with the consumer-goods company close behind in second place. Readers in the current survey gave third place to processed-food maker PT Indofood Sukses Makmur.

In the prior survey, Unilever was praised for innovation during a booming economy, coming up with products like shampoo for color-treated hair -- a new trend among Indonesia's middle classes.

Now, Unilever, which says it has 40% of the Indonesian market for consumer goods like toiletries, cosmetics, shampoos and detergents, is looking for ways to battle the duller economic picture. Unlike many Asian nations that rely heavily on exports, Indonesia's economy is somewhat shielded by the fact that about two-thirds of its gross domestic product comes from local demand. The International Monetary Fund expects the economy to grow by between 3% and 4% in 2009 as interest rates fall, one of the healthiest clips in the region, although down from a 6.1% expansion last year.

Still, consumer confidence has taken a hit, especially in areas that depend on commodity exports like palm oil and coal, which, despite a recent pick-up in prices, are still well down from last year's highs. Of Indonesia-based respondents to the Asia 200 survey, about 12% said they would spend significantly less this year, and 54% said they would spend somewhat less. About a quarter said they wouldn't change their spending, while 8% said they would spend more.

Unilever is looking for ways to meet that spending challenge by offering value for money, said Eka Sugiarto, head of marketing for the company's skin-cleansing-products division. For instance, the company has reformulated its popular Molto fabric conditioner to need only one rinse, rather than the usual three, allowing Indonesia's poorer households to save on water costs, Ms. Sugiarto says. Unilever is also positioning itself to benefit from the switch away from premium skin-care products. A recent marketing campaign has promoted Unilever's Ponds face cream, cheaper than rivals' offerings, as still high-quality. "This is the time when people will be re-evaluating their choices," Ms. Sugiarto said.

Unilever is also looking ahead to building markets for products that aren't yet popular with most Indonesian consumers, about a third of whom live on less than $2 per day. The company recently launched small sachets of deodorant, considered a premium product in Indonesia. The sachets, which last a week or two, cost 1,500 rupiah, or about 15 U.S. cents, much cheaper than a full roll-on or spray. Unilever also finds it easier to transport these sachets over the nation, a string of 17,000 islands that stretches across the equator over the equivalent distance of that between London and Saudi Arabia. Unilever products can be found in modern shopping malls in Jakarta but also, more commonly, in the small road-side wooden shacks where a majority of Indonesians still do their shopping across the island nation.

Last year, the company paid $40 million to take over the popular Buavita fruit-juice brand from a local company, its first move into juices. Unilever has been building its food business in Indonesia, which also includes Lipton tea, after acquiring a soy-sauce maker earlier this decade. The company's success comes down to effective market research combined with a great distribution network and a wide range of products for different economic segments, said Sarah-Jane Wagg, president of UBS Securities Indonesia. "It's a world-class company operating in Indonesia," she said.

One potential threat to Unilever's dominant market position is the emergence of PT Wings Surya, a non-listed consumer-goods maker set up 60 years ago by Indonesia's Katuari family. Wings has been successful recently in building market share for cheaper detergents and other household products. Unilever has responded to the slower economic growth by bringing the price for its detergent, Rinso, back below 500 rupiah, or 50 U.S. cents, a sachet, after prices increased last year in line with higher material costs, Ms. Sugiarto said.

Founded in 1933 during the Dutch colonial era, the unit of Unilever Group is Indonesia's largest consumer-goods company by sales. Despite the slowdown, sales in the first quarter grew 18% compared with the previous year, to 4.48 trillion rupiah ($448 million), while net profit rose 9% to 769 billion rupiah ($76.9 million). One of the challenges last year was keeping prices down despite high costs for materials like palm oil and higher transportation costs. While raw material costs have fallen recently, Unilever is now under pressure to lower prices.

The company's Bango soy sauce, Lifebouy soap and Pepsodent toothpaste brands are a major part of everyday life for Indonesians. In some areas, the company has huge market shares: It claims 80% of the nation's toothpaste sales and 50% of its shampoo sales. Other foreign consumer-goods companies like U.S.-based Procter & Gamble Co., which slimmed down its presence in Indonesia after the 1997-98 Asian financial crisis, have grown here in recent years to benefit from strong consumer spending. Nestlé SA said last weekend it would spend $240 million in 2009 to develop factories in Southeast Asia, including a small investment in Indonesia.

But Unilever is making the largest outlays here, including the opening of a $50 million factory near Jakarta, the capital, in 2008 to produce skin-care products.

In the Asia 200 survey, subscribers and businesspeople ranked Unilever No. 1 in three of the five categories they are polled on, and they ranked it second in a fourth. The first-place rankings came in the categories of "high-quality services and products," "innovation in responding to customer needs" and "management's long-term vision." It took second in "corporate reputation."

Deflation lurks around corner, economists say

WASHINGTON, June 18 (Xinhua) -- While many economists chatter about inflation, others are now turning their heads toward another goblin -- deflation.

While inflation remains a long term concern, the more immediate,short term fear is deflation, economists say. "Of the two, deflation is a bigger concern," said Justin Yifu Lin, World Bank chief economist and vice-president, at a recent news conference.

Lin said current capacity utilization -- the extent to which nations are using their production capacity -- is in many large economies running at a lowly 50 percent to 60 percent, he said.

That is evidence that deflation could emerge in the near term, he said.

"When capacity is underutilized, deflation becomes a risk," Lin told reporters.

While inflation is more commonplace, deflation, when it occurs, can be like quicksand, sucking the economy in deeper and deeper. First, declining demand drive prices down. That impacts profits and leads to layoffs. Then unemployment further saps demand.

"And down you go in a vicious cycle," said Ben Carliner, director of research at the Economic Strategy Institute, a Washington, D.C. think tank.

Many economists say deflation could start to take hold once the economy rebounds.

Brian Fabbri, chief U.S. economist at BNP Paribas -- one of Europe's largest banks -- told reporters at the Reuters Investment Outlook Summit in New York on Tuesday that while the United States may soon emerge from the current recession, it will sink into deflation next year and slog through a period of sluggish growth that could linger for years.

Bill Beach, director of the center for data analysis at the Heritage Foundation, a Washington D.C. think tank, said that in this economy, consumers are wary of spending because of worries about layoffs or pay cuts.

Indeed, the U.S. savings rate has shot up from zero at the start of last year to a current 8 percent of personal income -- an unusual occurrence in a nation that typically spends more than it saves, he said.

"My guess is that (savings rates) will continue to climb as people become worried about the future and want to have more money in the bank," Beach said.

History has shown that deflation can be devastating.

Japan's economy was mired in a deflationary sandpit in the 1990s and took more than a decade to climb its way out, Beach noted.

Worried about the slow economy, the Japanese spent frugally. As a result, companies lowered their prices to entice consumers to buy products. That caused the Japanese to spend even less, putting off purchases for weeks or months in anticipation of further price cuts, he said.

Profits declined and companies could not afford to hire new workers, causing a rise in unemployment and leading to yet further declines in spending, he said.

Governments typically battle deflation by lowering interest rates, but once they reach zero, they can not be lowered any further, leaving policy makers at a loss, experts said.

While governments and central banks use a certain set of tools to curb inflation, Fabbri told Reuters TV that policymakers -- from the Great Depression to Japan's "lost decade" in the 1990s --have had difficulty finding solutions to deal with deflation.

Beach said the United States could see near term deflation in non-essential products purchased by the middle and upper middle class, such as high-end clothing and luxury cars.

While deflation could hurt such industries, it could harshly impact developing nations, as many depend on just a handful of export products to provide employment, grow their economies and rake in foreign currency. Many workers could find themselves unemployed, Beach said.

Iraq's economy, for example, pulls in 80 percent of its foreign currency from oil and 20 percent from rugs, Beach noted.

China's surging growth, however, may offset this, as the country is buying massive amounts of raw materials from developing nations in a bid to spur domestic demand, experts said.

Carliner said serious global deflation would look like the Great Depression -- with entire industries folding and whole nations going bankrupt -- although he does not foresee it getting that bad.

Luckily, demographics will prevent such gloom and doom scenarios.

Beach said developing nations in Asia and Africa are seeing surging population growth, which means that more people are buying food. That keeps demand up and creates jobs producing, transporting and selling rice and other such products. Nations in regions such as Asia and Africa, where population is on the rise, grow even in the worst of economic times, Beach said.

Still, that will not prevent some degree of economic pain in such countries, as prices lower and demand lags in the United States, said Barry Bosworth, former presidential advisor and senior fellow at the Brookings Institution.

He predicts that the current U.S. recession will be long lasting and that emerging economies could feel the sting.

Indeed, Carliner said, "U.S. consumers are tapped out -- they have too much debt and they're not spending anymore."

That makes deflation not only a threat in the United States but also globally, he said.

"Deflation is the immediate threat the world over," he said.

That is why G-20 nations are trying to coordinate stimulus spending -- to boost demand and prices so the world can get back on track to solid economic growth again, he said.

Some economists also believe Japan is once again experiencing deflation, which could affect its developing world trading partners.

Meanwhile, Carliner said a key question is whether the global economy will rebalance -- it can no longer rely on U.S. and European consumers to keep borrowing more money to buy more consumer goods from export nations, he said.

by Matthew Rusling

U.S. Senate OKs war funding bill

WASHINGTON, June 18 (Xinhua) -- The U.S. Senate approved a 106-billion-U.S.-dollar bill Thursday for funding the wars in Iraq and Afghanistan through this September.

After earlier passage by the House, the legislation now goes to President Barack Obama for his signature.

The approved funding include 80 billion dollars to support war efforts in Iraq and Afghanistan.

Meanwhile, the measure, passed by the Senate on a 91-5 vote, contains several items unrelated to war funding.

They include 5 billion dollars to help the International Monetary Fund boost its lending capacity.

There are also 7.7 billion dollars for pandemic A/H1N1 flu preparation and 10.4 billion dollars for aid to Iraq, Afghanistan, Pakistan and other countries.

The bill was once bogged down after a earlier Senate version of the legislation banned public release of photos showing abuse of detainees by the U.S. military in Iraq and Afghanistan.

Obama broke the deadlock last week by offering to "continue to take every legal and administrative remedy available to me to ensure the photos are not released."

The final version of the bill does not include the 80 million dollars which Obama seeks for closing the military prison at U.S. naval base in Guantanamo Bay, Cuba.

It also prohibits current Guantanamo detainees from being transferred to U.S. soil, except they are to be prosecuted and only after the Congress receives a plan detailing risks involved.

Billionaire Stanford, chairman of the troubled Stanford Financial Group, surrenders

DALLAS: Texas billionaire R. Allen Stanford, chairman of the troubled Stanford Financial Group, surrendered to FBI agents in Virginia on Thursday afternoon, his attorney said.

Law enforcement officials said Stanford is in custody after surrendering in Stafford, Virginia.

Authorities plan to unseal an indictment charging Stanford on Friday, the officials said, speaking on condition of anonymity because they were not authorized to discuss the case.

Stanford is to appear in federal court in Richmond, Virginia, on Friday morning, they added.

A grand jury in Houston has been investigating Stanford Financial Group.

The Securities and Exchange Commission filed civil charges earlier this year accusing Stanford and his top executives of conducting an US$8 billion fraud by advising clients to buy certificates of deposit from the Antigua-based Stanford International Bank.

Dick DeGuerin, Stanford's attorney in Houston, told The Associated Press that Stanford "surrendered this afternoon to some FBI agents who were hiding out in black SUVs outside the residence where he was staying in Virginia."

"He walked out and asked if they had a warrant," DeGuerin said.

He said Stanford told them to arrest him if they had a warrant and said if they didn't he would go back to Houston Friday to turn himself in.

FBI spokesman Richard Kolko declined to comment.

Laura Pendergest-Holt, chief investment officer of Stanford's parent company, faces criminal charges of obstructing the SEC's investigation by lying about her knowledge of the firm's activities and omitting key details.

Jeff Tillotson, her attorney, told the AP that they "fully expect a superceding indictment in our case."

He has said she was "set up" by Stanford.

泰國‧泰一天111宗本土感染‧短短8天激增40倍

（泰國‧曼谷）泰國於週四（6月18日）警告，國內本土A型流感傳染病例激增，比8天前的本土病例激增近40倍。

公共衛生部週四說，當天再增113宗確診病例，使該國確診病例增至518宗。

公共衛生部長維塔雅說：“化驗證實週四增加113宗病例，只有兩宗是海外感染，其餘全為本土感染。”

他說，目前沒有人死亡，只有12人仍住院。

該部表示會“坦誠”向公眾公佈所有新病例，並會與世衛密切合作。

曼谷病例占全國三分二

副公共衛生部長馬尼特表示，曼谷病例占全國近三分之二，大部份患者為學生，有21人為芭堤雅夜總會職員。

目前全國有18府共60個教育機構因A型流感停課。曼谷23所學校週三（6月17日）暫時關閉。

馬尼特指出，國內59所學校和一所大學自5月出現流感病例。

當局說，他們本週分發100萬份防範流感指導手冊，首相阿比希也敦促人民不要恐慌。

China’s Got a New Currency….. and It Sure AIN’T the Dollar

Let’s talk about China.

China is the US’s largest creditor. All told, the People’s Republic has $700+ billion in US Treasuries. However, if you account for other dollar denominated investments, China is believed to have 70% of its $1.7 trillion in foreign reserves sitting in green backs.

That’s an unbelievable amount of money invested in the US dollar. Needless to say, the Chinese are not too happy about our Central Bank’s decision to print TRILLIONS of dollars propping up the US financial system.

Indeed, the initial rumblings of what will eventually turn into outright conflict (either economic or war) have already begun. China’s Premier Wen Jiabao recently commented, "We have lent a huge amount of money to the US…Of course we are concerned about the safety of our assets. To be honest, I am definitely a little worried."

Other, former Chinese officials have been less polite in their public statements. Yu Yongding, a former Chinese central bank adviser, recently referred to the US Federal Reserve “as the world’s biggest junk investor… ridden with rubbish assets,” and to Chairman Ben Bernanke as “helicopter Ben.”

The situation has gotten intense enough that Secretary of the State Hillary Clinton flew to Asia to plead with China and other US creditor nations to continue buying US Treasuries. “By continuing to support American Treasury instruments the Chinese are recognizing our interconnection. We are truly going to rise or fall together," Clinton said at the US embassy there.

In simple terms, China owns a TON of dollar denominated assets. And the Fed is doing everything it can to devalue the dollar. Thus China has a few options:

1) Openly sell the dollar, thereby destroying the value of its reserves and inviting open war with the US.

2) Quietly shift away from the dollar without openly attracting attention or threatening the US publicly.

The Chinese government, particularly its Premier, has been floating option #1 in the media, discussing the potential for dropping the dollar standard along with Russia and Brazil.

However, this boils down to nothing more than grandstanding. The Chinese are not idiots. And they know that dropping the dollar standard would destroy a HUGE portion of their foreign reserves, since everyone and their mother would follow suit.

Indeed, abandoning the dollar for another currency (say the yen or euro) would serve no benefit from an economic standpoint. It would crush China’s Treasury denominated reserves as the dollar plunged. It would also be akin to trading one problematic investment for another: no major world currency is backed by gold or any asset of real value.

No, to my way of thinking, the Chinese are merely posturing with these statements, trying to draw attention away from the fact that they’re already begun pursuing option #2 (diversifying away from the dollar in private). Indeed, China has already begun moving into a new currency, one that is neither fiat nor flawed. And they did it in their usual manner: under the radar with great focus and determination.

That new currency is natural resources.

Throughout 2009, China has been buying up natural resources, commodities, and other real assets at a break-taking pace: copper imports hit a record 329,000 tons in February, only to be eclipsed by a new record of 375,000 tons in March.

The copper story is just the latest and most obvious display of China’s new currency binge. The Chinese have been buying up mines, metal ore (57 million tons of iron in April alone), and other resources for years now. The headlines were right under the world’s collective nose, but no one was thinking “diversification away from the dollar.” Instead they were thinking, “purchases needed to fuel economic growth.”

Truly, it wasn’t until the world noticed that China was still buying commodities in record amounts even after its economy took a hit that the media began to connect the dots.

Here’s a few dots to consider…

Feb.10, 2009: China buys Oz Minerals, the world’s second largest zinc miner for $1.7 billion

Feb. 12, 2009: China buys $20 billion worth of Rio Tinto, one of the three largest iron ore producers, giving it the potential to raise its stake to 19%.

Feb. 24. 2009: China buys 16% of Fortescue Metals an Australian iron ore company.

April 1, 2009 China buys $46 million worth of Terramin Australia’s lead and zinc supplies in Algeria.

April 15, 2009: China buy 51% of Ontario’s Liberty Mines: a nickel producer.

One should also consider that these are merely the transactions that are publicly displayed. The Chinese government has proved adept at buying assets below the radar via foreign holding companies and other complicated business structures. Informal accounts posit that China has in fact scooped up even more natural resources and mines via these methods today.

The reasoning here is simple. Unlike paper currencies, natural resources and commodities cannot be reproduced ad infinitum by central banks. Thus they are inflation proof. In addition, natural resources actually offer a direct benefit to China’s economy whereas an investment in a foreign currency (the dollar or otherwise) is merely a means of parking cash for a return.

Finally, and most notably, natural resources allow the Chinese to diversify away from the dollar without damaging their current dollar holdings: or their relationship with the US: if word got out that the Chinese were dumping Treasuries, the Treasury market would implode, destroying the value of China’s current investment.

Make no mistake, the Chinese have already begun diversifying away from the dollar. They just haven’t advertised the fact openly. Chinese students openly laughed at our Treasury Secretary Tim Geithner when he gave a talk there promising that “Chinese assets were safe” in the dollar. If Chinese STUDENTS can figure the Fed’s moves out, what do you think the Chinese GOVERNMENT is doing?

I think we both know the answer to that.

Best Regards,

Graham Summers

美國‧重返月球‧發射2探測器

（美國‧華盛頓）美國太空總署週四（6月18日）成功發射兩個月球探測器，向人類在2020年重返月球的漫長旅程邁出第一步。

這兩個探測器將對月球進行重大探測任務，分別搜尋這個地球衛星上的水源和降落地點。

當地時間下午5時32分（大馬時間今日（週五，6月19日）凌晨4時32分），太空總署在佛達州卡納維拉爾角空軍基順利發射“宇宙神-5”火箭，一舉將“月球勘查軌道號”（LRO）和“月球隕坑觀測與傳感衛星”（LCROSS）兩枚探測器送上太空。

運行1年收集數據太空總署稱，此次發射“完美無缺”。月球探測器約在4天後接近月球，並將圍繞月球運行1年以收集並傳回有關數據，為美國下一步載人探月以及探索太陽系提供依據。

第一位在月球漫步的是美國太空人，人類最近一次探月是在1972年。

發射月球探測器是美國“重返月球”戰略計劃的第一步。太空總署表示，啟動“重返月球”計劃將有助於瞭解一些基本問題，如地球、太陽系和宇宙的形成。

“星座計劃”總工程師托德‧梅本週向記者說：“這兩個探測器將提供必要的資訊，讓我們決定是否再送人登月。”

“月球隕坑觀測與傳感衛星”將是美國太空總署歷年來最炫目的探月活動。

U.S., Europe Try Good-Cop, Bad-Cop Approach

European states are taking a considerably more aggressive line toward Tehran's clerical leaders than the Obama administration as Iran's postelection crisis deepens, fueling the ire of U.S. Republicans and some democracy activists.

The approach suggests an unusual reversal among the Americans and Europeans from recent history, with Washington emerging as a relatively passive voice and the European Union assuming the role of Tehran's chief scold. But the dynamic also is being welcomed by many European officials involved in Iran diplomacy as an effective approach against Tehran.

The pressure being applied by European states with substantial diplomatic and economic ties to Iran will be more difficult for Supreme Leader Ayatollah Ali Khamenei to shrug off in coming months, said these officials.

Meanwhile, a measured position by President Barack Obama could rob Tehran's leaders of a foil to use against the growing reformist movement, though the government this week nevertheless accused the U.S. of helping to foment unrest.

"The Europeans have been out very vociferously defending the rights of Iranians and protesting the irregularities. To me, that makes better sense," said Suzanne Maloney, a Brookings Institution Iran analyst and former State Department official. "They have the presence on the ground, they have the relationships with the Iranians, they can potentially make a difference."

Since charges of electoral fraud emerged last week, some EU states have openly challenged the results, while Mr. Obama has chosen his words carefully.

French President Nicolas Sarkozy this week called the election a "fraud." German Chancellor Angela Merkel condemned a "wave of arrests" by the government and cited "signs of irregularities." After a meeting on Monday, EU foreign ministers called on Tehran to "address and investigate" allegations of vote fraud.

Iran shot back Thursday with ire usually reserved for the U.S. "Foreign support for these trouble-makers and anarchists under the cover of supporting democracy and the voice of the Iranian people raises questions and cannot be justified," said a statement from Iran's Embassy in Brussels.

At a Brussels summit Thursday, EU diplomats said they saw it as their turn to take a stand while the U.S. handles the delicate negotiations with Tehran that they expect in coming months over the nuclear issue. "This time around, we know that it's Obama's problem to deal with," said a French diplomat. "That frees us up to be a bit more critical than usual."

U.S. and European officials said that there wasn't any concerted decision between them to develop a good-cop, bad-cop scenario. But they stressed that they discuss Iran every day. "There are regular contacts, we talk all the time," said French spokeswoman Marine de Carne. For the moment, she says, "we are respecting the outcome of the elections."

The real fault line in international diplomacy, said U.S. and European officials, pits on one side Washington and the EU, which have complained about freedom-of-speech restrictions in Iran, and on the other Russia and China, which have refrained from criticizing Iranian authorities in recent days.

To be sure, France has been outspoken on Iran for some time. As far back as 2007, then-President Jacques Chirac caused a stir by warning Iran that if it were ever to use a nuclear weapon against Israel, Tehran would be wiped out within seconds.

Britain, which shared responsibility with the U.S. for the 1953 coup that brought the Shah to power, has mostly taken a similar line to Washington's, judging that any attempt to side with defeated challenger Mir Hossein Mousavi would backfire.

When the U.K., France and Germany began talks with Tehran over its nuclear program, the U.S. administration opposed the effort, which offered Tehran civilian nuclear technology and trade privileges if it would abandon its efforts to produce nuclear fuel. With no alternatives available, Washington became supportive.

Though years of negotiations produced no result, U.S. officials said the cooperation with Europe contributed to a unified stance on the electoral crisis. "We are pretty close together on substance and tone," said a senior U.S. official working on Iran.

As they arrived at the Brussels summit, EU foreign ministers were expected to draft a new policy statement on Iran. But after dishing out their criticism earlier in the week, "everybody's being prudent, and waiting for a recount or some other development," says Delphine Colard, a spokeswoman for the Belgian ministry of foreign affairs.

By JAY SOLOMON, JOHN W. MILLER and STEPHEN FIDLER

Japan warns that North Korea may fire missile at U.S. on Independence Day 日本‧《讀賣新聞》推測在7月初‧朝或向夏威夷發射導彈

North Korea may launch a long-range ballistic missile towards Hawaii on American Independence Day, according to Japanese intelligence officials.

The missile, believed to be a Taepodong-2 with a range of up to 4,000 miles, would be launched in early July from the Dongchang-ni site on the north-western coast of the secretive country.

Intelligence analysts do not believe the device would be capable of hitting Hawaii's main islands, which are 4,500 miles from North Korea.

Details of the launch came from the Japan's best-selling newspaper, Yomiuri Shimbun.

Both Japanese intelligence and U.S. reconnaissance satellites have collated information pointing to the launch, according to the report.

（日本‧東京）日本《讀賣新聞》週四（6月18日）報導，朝鮮可能7月初往美國夏威夷海域發射一枚長程彈道導彈。

報導指出，朝鮮最有可能發射“大浦洞-2”長程導彈。美國偵測衛星已掌握到朝鮮東倉基地內有導彈發射台，但導彈進行組裝、注入燃料到發射之間最少約需10天。

報導稱，2006年7月4日，朝鮮曾發射“大浦洞-2”，正值美國獨立紀念。7月8日是朝鮮主席金日成逝世紀念日，因此日本防衛省推測，“朝鮮可能於4至8日之間發射”。

日韓拒評報導

日本防衛省發言人拒絕對《讀賣新聞》的報導置評。韓國國防部和局也拒絕予以證實。

不過《讀賣新聞》同時指出，夏威夷距朝鮮有7000公里之遙，即使新型的“大浦洞-2”改良型，射程也只是4000至6500公里左右，若通過日本青森縣上空的最短捷徑，也無法抵達夏威夷。

朝鮮發出禁航警告

此外，日本海上保安廳表示，再次接聽到朝鮮向沿岸船隻發出的航行警告。日本正密切注意，是否與發射導彈有關。

朝鮮此次劃定的禁航區域，為東部元山沿岸長約263公里、最寬約54公里範圍的日本海。

This is North Korea's Taepodong-2 missile which has a range of 4,000 miles. Intelligence analysts do not believe it would be capable of hitting Hawaii which is 4,500 miles away

Enlarge

North Korean leader Kim Jong Il inspecting the command of the 7th Infantry Division of the North Korean Peoples Army

It is understood the communist state is likely to fire the missile between July 4 and 8. A launch on July 4 would coincide with Independence Day in the States.It would also be the 15th anniversary of North Korean president Kim Il-Sung's death.

The Japanese newspaper also noted that North Korea had fired its first Taepodong-2 missile on July 4, 2006.

Officials had initially believed that North Korea might attempt to launch a similar device towards either Japan's Okinawa island, Guam or Hawaii.

But the ministry concluded launches toward Okinawa or Guam were 'extremely unlikely' because the first-stage booster could drop into waters off China, agitating Beijing, or hit western Japanese territory.

If the missile were fired in the direction of Hawaii, the booster could drop in the Sea of Japan.

News of the launch would put 'enormous military pressure on the United States,' the Yomiuri said, citing the ministry report.

Enlarge
A missile fired from North Korea would have to travel 4,500 miles before it reached the U.S. state of Hawaii

A spokesman for the Japanese Defense Ministry declined to comment on the report.

South Korea's Defense Ministry and the National Intelligence Service - the country's main spy agency - said they could not confirm it.

Tension on the divided Korean peninsula has risen markedly since the North, led by Kim Jong-il, conducted two nuclear tests this year in defiance of repeated international warnings

The first rocket, fired in April, was widely seen as a disguised long-range missile test. A second launch came on May 25.

U.S. satellite intelligence has shown that a missile launch pad had been erected at Dongchang-ri on North Korea's north-west coast.

General James Cartwright, vice chairman of the Joint Chiefs of Staff, said it would take at least three to five years for North Korea to pose a real threat to the U.S. west coast.

The UN Security Council last week authorised member states to inspect North Korean sea, air and land cargo, requiring them to seize and destroy goods shipped that violate the sanctions against arms export.

On Saturday, in response to this declaration Pyongyang said it would bolster its nuclear programs and threatened war.

Growing tensions come as arms-watchdog the International Crisis Group (ICG) claimed North Korea has several thousand tonnes of chemical weapons it could mount on missiles.

The report from the non-government organisation said they believed the North's army have about 2,500 to 5,000 tonnes of chemical weapons which include mustard gas, sarin and other deadly nerve agents.

ICG also also warned South Korea may become a target.

'If there is an escalation of conflict and if military hostilities break out, there is a risk that they could be used. In conventional terms, North Korea is weak and they feel they might have to resort to using those,' said Daniel Pinkston, the ICG's representative in Seoul.

The North has been working on chemical weapons for decades and can deliver them through long-range artillery directed on Seoul which is home to about half of South Korea's 49 million people and via missiles that could hit all of the country.

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