South Asia Moves to Bring Anti-terror Laws in Line with UN

South Asian officials have agreed to amend a regional convention to bring it in line with the tough anti-terror resolution of the United Nations, the foreign ministry here said Saturday. Senior officials from the seven-nation South Asian Association for Regional Cooperation (SAARC) met for three days here and by Friday agreed on a draft to be considered by their leaders, the ministry said. "Substantial progress was made at the meeting and agreement reached on a majority of the provisions on the draft text proposed by Sri Lanka," the ministry said in a statement. The additional protocol to SAARC's 1987 convention on suppression of terrorism will incorporate obligations for member states in line with UN resolution 1373 adopted after the September 11, 2001, attacks in the United States. SAARC groups Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka.

From http://www.haveeru.com.mv/ 09/01/2003

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China Urges Int'l Consensus on Nuclear Test Ban Treaty

It is imperative to further expand the international consensus on banning nuclear test explosions and speed up the ratification process so as to promote the early entry into force of the Comprehensive Nuclear Test Ban Treaty (CTBT), a top Chinese diplomat said Thursday in Vienna. It is imperative to further expand the international consensus on banning nuclear test explosions and speed up the ratification process so as to promote the early entry into force of the Comprehensive Nuclear Test Ban Treaty (CTBT), a top Chinese diplomat said Thursday in Vienna. Zhang Yan, China's ambassador to the Office of the United Nations and other international organizations in Vienna and head of the Chinese delegation to the ongoing 2003 CTBT conference, told the conference that multilateralism is now confronted with challenge, and that international non-proliferation is in an increasingly grave situation. "The conclusion of the CTBT represents a major step of milestone significance toward comprehensive and complete nuclear disarmament and a world free of nuclear weapons," Zhang said. Although the CTBT has not yet come into force, its purposes and objectives have increasingly become basic international norms and played an indispensable role in preventing nuclear weapons proliferation, he added. Zhang called on the international community to create a sound international security environment, to firmly uphold the purposes and principles of the CTBT, and to actively support and fully participate in the work of the CTBT preparation committee. As for China's stance on the test ban issue, Zhang said China has all along stood for the complete prohibition and thorough destruction of nuclear weapons, and worked hard to prevent proliferation of weapons of mass destruction. "The Chinese government supports and attaches importance to the treaty and has been working unswervingly for its early entry into force," he said. Zhang stressed that China, as a nuclear weapon state and one of the 44 states whose ratification is required for the treaty to come into force, firmly supports the CTBT and fully realize its special responsibility for the treaty's entry into force. At present, China's National People's Congress is performing its due ratification formalities in accordance with relevant constitutional procedures, said Zhang. The Chinese ambassador pledged that the Chinese government "will continue to do its utmost to have the ratification procedure completed by the NPC at an early date." The 2003 Conference on Facilitating the Entry into Force of the CTBT kicked off on Wednesday in the Austria Center in Vienna, with the participation of delegates from 71 countries and 19 non-governmental organizations. The three-day conference is expected to examine ways and means to facilitate the CTBT's entry into force, to renew global awareness of the treaty and to encourage countries which have not yet ratified it to do so. Drafted at the Conference on Disarmament in Geneva, and opened for signature on Sept. 24, 1996, the treaty bans all nuclear tests in any environment. To date, 168 states have signed the treaty and104 have ratified it. The treaty will come into force 180 days after all the 44 nuclear states deposit the documents of ratification to the United Nations. The conference is the third of its kind, with the two previous ones held in 1999 in Vienna, and in 2001 in New York.

From http://english.peopledaily.com.cn/ 09/04/2003

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ASEAN Army Chiefs Agree on Joint Cooperation Against Terror Threats

ASEAN army chiefs have said the terror threat must be dealt with jointly, and bilateral hiccups will not prevent them from working together to achieve common goals. At their annual forum held in Kuala Lumpur, they explored how best to enhance cooperation and foster better understanding among the region's defence forces. Advertisement Malaysia's army chief said occasional bilateral problems would not hinder efforts by ASEAN defence forces to forge closer cooperation. Agreeing, his Singapore counterpart said the web of bilateral relations is very strong, and added that the multilateral meeting enables discussions on issues of mutual concerns. The Indonesian chief of army believed by sharing intelligence information, terror operatives can be tracked down before they commit terrorist acts. He said through cooperation, terrorists will be prevented from fleeing to other countries. The ASEAN army chiefs will hold their next meeting in Indonesia. (by Zainudin Afandi)

From http://www.channelnewsasia.com/ 09/09/2003

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Cambodia and Nepal Win WTO Entry

The World Trade Organisation has agreed to admit Cambodia and Nepal as members. When the remaining legal procedures are completed they will be the first countries classified as least developed to join the organisation since it was founded in 1995. The decision was taken by WTO member countries' ministers at a meeting in Cancun in Mexico. The terms of Cambodia's accession have proved particularly controversial. A report by the Development Agency, Oxfam, says that Cambodia has made concessions that go far beyond what was made by least developed countries that were founder members of the organisation. It was the result, Oxfam says, of pressure from existing WTO members. In a speech to the meeting here, the Cambodian Commerce Minister, Cham Prasidh, said the Oxfam report does reflect the results of the negotiations, although he said he does not share all its views. He said Cambodia paid a heavy price for national reconciliation and peace and now is paying another heavy price to join the WTO. "We believe that the package of concessions and commitments that we have to accept certainly goes far beyond what is commensurate with the level of development of a least developed country like Cambodia," Mr Cham said. The Oxfam report says that Cambodia has had to agree to reduce tariffs on farm products to levels well below the highest applied by the European Union or the United States. It is also having to introduce patent protection on medicines many years earlier than other least developed countries. None the less, Mr Prasidh said the commitments are not beyond Cambodia's reach. He said he accepts the challenge because Cambodia sees the benefits of joining the world trading system. Cambodia and Nepal now have to ratify their accession agreements. Their membership is likely to take effect next year.

From BBC News 09/12/2003

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Asia Hub Plan Shanghaied by Island

China is currently developing a small island in the waters off Shanghai, called Yangshan, into what is says will be the world's largest port, leading some to fear that Busan Port, currently Korea's largest port, will lose up to 30 percent of its cargo business. The Korean consulate general in Shanghai reported the grandiose Chinese plan to Cheong Wa Dae and to concerned government offices in Korea, judging the plan to be a threat to the Korean government's much-touted plan to develop the country into the business hub for Northeast Asia. Facing the risk of being undercut by the Shanghai plan, the Korean government is expected to dispatch top officials to the city in order to get a better look at the plan to develop the island. Currently, the annual container treatment capacity of Shanghai stands at 7.8 million TEUs, surpassing Busan Port's 6.68 million TEUs. In addition, the Chinese city has 22 berths, one notch above Busan's 21 berths. Shanghai has also outrun Busan in the handling of containers, emerging as the world's third-largest port. The Shanghai port has an Achilles' Heel. The draft of the port is a shallow eight or nine meters, meaning container vessels in Shanghai cannot be fully loaded without hitting the seabed. Ships must leave with about half of their containers and get the rest in Busan or in Kobe, Japan, before heading out to ports in the United States, Canada or Europe. Other major Chinese ports, including Tianjin, Dalian and Tsingdao, also have drafts that are too shallow for large container ships. Ships there must also be serviced in Busan or Kobe, accounting for 20 percent of Busan's total cargo handling. The consulate's report said that once the new Chinese port is completed, Busan would lose that important block of business, bypassed by fully-loaded container vessels. According to the blueprint for the Yangshan development, the port is expected to handle 22 million containers a year, the largest treatment capacity in the world and about three times that of Busan Port. Korean logistics experts said Busan Port's attempt to compete in terms of container capacity with Shanghai is no longer feasible. They called for Busan to develop into a comprehensive logistics center for Korea, as well as for neighboring nations. (by Yoon Yeong-shin)

From Digital Chosun 09/14/2003

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Cancun Declaration Pushes Open Markets

CANCUN, MEXICO- The fifth ministerial conference of the World Trade Organization, where openings of agricultural markets under the Doha Development Agenda are being discussed, released a draft on Saturday (local time) that will sharply reduce tariffs on agricultural imports. Singapore's Trade Minister George Yeo Yong-Bon, the current facilitator of the Doha Agenda's agriculture sector, said that the draft's method of reducing agricultural tariffs is one that both the developed and the developing countries will follow. The draft was chosen as the ministerial declaration - or the final draft. Korea imposes 100 percent tariffs on agricultural imports, including rice; but with the issuance of this draft, Korea will be more likely to further open up its agricultural markets. Previously, Korea had issued a statement proposing the elimination from the final draft of the tariff ceiling system and low tariff rate quota. The tariff ceiling system sets upper limits for tariffs and the quota expands the amount of agricultural imports that are subject to low tariffs. Trade Minister Hwang Doo-yun said in a press conference that though the proposal was not reflected in the draft he will try his best to get it recognized. The draft will also enforce steep reductions of local farm subsidies, which may endanger Korean rice farmers. Meanwhile, 15 Korean anti-globalization protestors tried to march into the WTO conference hall but staged a demonstration for an hour after they were halted by Mexican police. (by Choi Woo)

From http://english.chosun.com/ 09/14/2003

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WTO Ministerial Conference Concludes

Ministers from the 146 members of the World Trade Organization have wrapped up their the five-day conference in Cancun, Mexico after failing to reach common ground on a free- trade declaration. Reports say the meeting broke down because of a huge gap in the positions between developed members and developing ones. Almost all sides found something to complain about in the draft declaration that was supposed to pave the way for negotiations towards a binding treaty on liberalizing international trade by the end of the next year. A statement issued by the Group of 21 developing nations says the draft plan has failed to set a timetable or put enough pressure on the United States and the European Union to slash the massive subsidies they give their farmers. The alliance includes China, India and Brazil. Developing countries were also upset that the draft proposes beginning talks in two new areas: trade facilitation and transparency in government procurement. The EU was also unhappy, saying it was being asked to do too much and was not getting much in return. The failure of the Cancun talks now threatens to postpone the implementation of the Doha Development Agenda, a roadmap for multilateral trade liberalization adopted by the WTO in the Qatari capital of Doha in 2001. The program calls for an end to the negotiating process by January 1, 2005, after which a new global trade regime was to be established under which goods and services could flow smoothly across national boundaries, raising incomes and living standards along the way. A ministerial statement, released by the WTO secretariat said officials will continue working on outstanding issues with a "renewed sense of urgency and purpose." A meeting of the General Council at the senior official level will be convened no later than mid-December this year. Mexican Foreign Secretary Luis Ernesto Derbez announced the next WTO ministerial conference will be held in China's Hong Kong.

From http://www.crienglish.com/ 09/15/2003

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Asia-Pac Virus Early Warning System Planned

SINGAPORE: South-East Asian information and communications ministers announced plans to establish a computer virus early-warning system and to form specialist emergency response teams to deal with cyber-attacks.Members of the Association of South-East Asian Nations (ASEAN) hope by next year to have a framework for sharing real-time information on computer threats and vulnerability assessments, the ministers said after a two-day meeting here. By 2005, all of ASEAN's 10 members are expected to have set up Computer Emergency Response Teams (CERTs) to deal with hacker or virus attacks. Each CERT will be linked to the regional framework to form an ASEAN-wide network, the ministers said. "The national CERTs of each ASEAN country will create a specialist group trained and equipped to deal with cyber-security threats," Singapore Information, Communications and Arts Minister Lee Boon Yang said. "The intention is that, having been alerted or having experienced such computer virus attacks, the CERTs will immediately be able to use this common framework to share experiences and alert ASEAN partners to the nature of the threats. "Everybody gets an early warning and begins to take action to prevent the spread of the virus." Philippines Transportation and Communications Under-Secretary Virgilio Pena said six of ASEAN's 10 members had already set up computer specialist teams. ASEAN members were at "various stages" of co-ordination with the private sector to develop CERTs, he said. The ultimate plan was to link an ASEAN-wide CERT network with similar frameworks in the Asia-Pacific region and globally, Mr Pena said. In his keynote address to the meeting on Thursday, Singapore Prime Minister Goh Chok Tong said South-East Asia must develop a "common and sustained" approach to protection of telecommunications and computer networks from virus and hacker attacks. Mr Goh said attacks by three computer viruses last month had cost an estimated $US800 million ($1.17 billion) in damages globally, underscoring the challenges facing modern technological societies. National CERTs swung into action during these virus attacks, but there had been no co-operation among ASEAN members, Mr Pena said. "We are trying to connect the CERTs of ASEAN countries so there will be international early-warning signals," he said. Mr Lee said lack of regional co-operation would make ASEAN "much weaker" in dealing with the problem". "The resilience of ASEAN depends very much on our ability to share information on a timely basis," he said. The ministers also agreed to expedite bilateral arrangements for regional recognition of tests on telecommunications products in the various countries, to save costs and spur trade flows. Mr Lee said Singapore would launch talks for mutual recognition arrangements with Brunei and Indonesia by next year, hoping to encourage other ASEAN members to begin their own initiatives leading to a regional network of MRAs Australia has been pushing for CERTs in Asia-Pacific countries, along the lines of AUSCERT, in an effort to combat hacking and virus attacks, and has provided AusAID funds for CERT training in Papua-New Guinea, the Philippines, Indonesia, Vietnam and Thailand. That funding followed a call by Communications Minister Richard Alston at an APEC meeting in Shanghai last year for co-operation on IT security issues. The APEC meeting identified security as a top priority for members. (by Martin Abbugao)

From http://australianit.news.com.au/ 09/23/2003

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CHINA: Adopts Law to Curb Government Power

A new law enacted by China's top legislature aims to remove much of the red tape associated with running businesses, and remove loopholes for corrupt officials to make money from issuing licenses and franchise rights. The Standing Committee of the National People's Congress adopted the law on administrative licenses Wednesday, which embodies the principle of rigorously restricting the power of government bodies, and will facilitate the country's uphill battle against corruption. The law of 83 articles in eight chapters, with a decree by President Hu Jintao, will take effect as of July 1, 2004. The new law covering the government's right to grant franchises, permits or certificates to businesses and individuals "will have an unprecedented impact on the relations between government bodies and common citizens," Professor Ying Songnian said. Ying, a member of the NPC Civil Affairs Committee and dean of the department of law of the State Administrative College, helped write the draft's first version. The State Council, or the Chinese cabinet, has found that its commissions and ministries used to empower themselves with as many as 3,000 kinds of special rights in granting franchises or permits. "On the one hand, the government bodies were managing many things that they couldn't manage or should manage," Ying said. He noted that government officials had found the right to granting franchises and permits very profitable for their departments, and themselves. "Government bodies are enthusiastic about expanding their power because they can collect fees from those who want the franchises or permits, and this is a major source of government corruption," Ying said. It was not strange to see a prospective entrepreneur become discouraged by too many visits to government departments just for permission to open a small restaurant. Ying went on to say that the State Council launched its massive reform measures in 2001 after it discovered a large number of problems in a survey for the legislation. So far, commissions and ministries of the State Council have given up rights to administer 1,195 franchise rights, and handed 82 items to industrial associations and other intermediate agencies. However, the legislation adopted Wednesday will ensure that such administrative reform continues in the right direction, lawmakers and legal experts said. Under the new law, commissions and ministries of the State Council will no longer have the right to empower themselves with franchising rights, and fee collection practices will be abandoned. A vital feature of the new law highlights "higher efficiency and convenience for ordinary common people," said Wang Yongqing, deputy director of the Legislative Affairs Office of the State Council. The law simplifies the procedures for administrative licenses and abolishes unnecessary restrictions against applicants, and makes the government administration the last option only after all other means have failed. A government license should only be required by a citizen if his business is related to national or economic security, public interest, personal rights and property of other citizens, exploitation of rare natural resources and the distribution of limited public resources, according to the law. To avoid the misuse of power by government bodies, franchises for the distribution of limited resources should be granted through bidding, auction or competition, it notes. The law says that the people who want to start a business or other enterprise will be required to go to far fewer government agencies for approval. Even if approval from different government bodies is required to get one thing done, for instance opening a restaurant, these bodies may also set up a special office dealing with restaurant certification so applicants do not have to go to different places. "We shouldn't cost people too much effort, time and money, even if it means more work for the government," said Wang Yongqing, the official with the Legislative Affairs Office of the State Council. Such stipulations are also in compliance with the rules of the World Trade Organization and are needed by China in accommodating itself to an ever more globalized economic structure, he acknowledged. The Chinese leadership has declared that "power should be used for the people, passion should be tied to the people and interests should be sought for the people." The new legislation can be seen as a new landmark for the Chinese leadership in enforcing its political manifesto, legal experts said.

From Xinhua net 08/28/2003

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Laws on Non-public Education, Environment Assessment Take Effect

A batch of newly-passed laws and regulations, including laws on the promotion of non-public educational institutions and on environmental impact assessment took effect Monday and are expected to have a long-lasting impact on people's lives. The law on the promotion of non-public educational institutions stipulates that such institutions serve the public welfare and thus enjoy the same legal status as public institutions. A law on environmental impact assessment is intended to eliminate the side effects of construction projects and promote the coordinated development among the economy, society and environment as a whole. A regulation on Sino-foreign co-operation in running schools encourages overseas high-quality educational sources to invest in vocational education and higher education in China. The regulation on bank settlement accounts in RMB, which brings the practices of Chinese banks closer to international standards, is aimed at better preparing them for competition with their Western rivals. Other laws and regulations that took effect Monday also include regulations on property management, on coastal beacons, on administration of printed publications and on the administrative punishment of copyright violators, as well as 30 measures on residence registration, driving and passport applications.

From Xinhuanet 09/01/2003

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Shanghai to Hire 10,000 Returned Students

China's largest metropolis of Shanghai is to offer ten thousand positions in technology and management for students returning from overseas in the next three years. A spokesman for the Shanghai municipal government says the move is aimed at further improving the city's human resources base. The spokesman adds that returned professionals could work for six months to three years, after which they could decide whether or not to stay. A series of preferential policies have been designed to attract overseas applicants.

From CRI 09/01/2003

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Disarmament to Cut 200,000

CHANGSHA: Another 200,000 troops will be cut from China's army by 2005, reducing the overall number to 2.3 million, it was announced yesterday. It follows the disarmament of 500,000 personnel from 1996 to 2000. The decision was jointly made by the Central Committee of the Chinese Communist Party and the Central Military Commission (CMC). It was announced yesterday by CMC Chairman Jiang Zemin during a celebration to mark the 50th anniversary of the founding of the National University of Defence Technology of the Chinese People's Liberation Army (PLA) in Changsha, capital of Central China's Hunan Province. Jiang said the reduction is not only in accordance with world military trends for reform, but also out of necessity for China's economic construction. With the development of modern science and technology, especially information technology, global competition in military affairs has been intensified, he said. During the current transformation from mechanized warfare to information warfare, the information capability of the army plays an increasingly decisive role. "Further reducing the scale of the army will help us concentrate our limited resources on speeding up the army's information technology construction," said Jiang. The chairman said it is a very significant decision which will promote the construction of the nation's army, accelerate the modernization drive of the army, stimulate national economic development and contribute to the peace and development of the whole world. The total force of the PLA, including both active and reserve components, has been maintained below the 2.5 million-strong mark. According to a white paper on China's national defence issued in December 2002, the Chinese Government has always been strict in its control, management and supervision of defence spending, and has formed a complete system of relevant laws and regulations for that purpose. Based on continuous economic growth, China's defence expenditure has increased at a fairly low level, and the increase is basically of a compensatory nature. According to a budget approved by China's legislature in March, the Chinese Government earmarked 185.3 billion yuan (US$22.3 billion) for national defence in 2003, a 9.6 per cent increase over the figure for the previous year. However, defence expenditure, which accounts only for 1.69 per cent of the country's budgetary expenditure, remains much lower than developed countries, neighbouring countries and also the world average, which stands at 3 per cent.

From China Daily 09/02/2003

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China Unveils Five-Year Target for Compulsory Education

The Chinese government has made a decision to guarantee the vast majority of school-age children to complete a nine-year compulsive education by 2007. Premier Wen Jiabao made the remark on the eve of China's 19th Teachers' Day, which falls on September 10. The premier said the State Council has made the decision to set a five-year goal of letting at least 85 percent of school-aged children in China's impoverished western region have access to the nine-year compulsive education, which includes six years of primary and three years of junior school education. Wen Jiabao promised efforts to raise the social status of teachers and improve their working and living conditions, while urging them to set good examples for their students and the society as a whole. He also called on governments at all levels to do their utmost to increase investment in education and create better conditions for education. According to the Ministry of Education, China had 11.5 million teachers across the country by 2002.

From CRI 09/10/2003

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Rules Set for Product Controls

Representative offices of foreign authentication organizations in China are now forbidden to engage in any authentication business, according to a State Council ordinance promulgated on Sep.9. The new regulation was released to establish clear rules for the product certification and accreditation activities of the watchdog and those organizations qualified to conduct certification, training and national accreditation for laboratories. The China Certification and Accreditation Administration (CNCA) said the unveiling of the regulation is an important step for China's certification reform. The regulation takes effect on November 1. The representative offices of foreign authentication organizations, after legal registration with the Chinese administration for industry and commerce, can only conduct business promotion, but cannot engage in actual authentication business. However, the ordinance allows the establishment of foreign-financed authentication organizations, with specific restrictions. China encourages the mutual recognition of authentication and certification standards among countries, based on the principles of equality and mutual benefit, according to the regulation, and such recognition should in no way damage national security and public interests. All authentication activities should be conducted under the principle of "objectivity, independence, openness, fairness, honesty and trustworthiness," states the ordinance. According to the regulation, the CNCA, established in 2001, is the only watchdog authorized by the central government to supervise certification in the market. The anonymous official with CNCA said the accreditation procedures included in the regulation are in line with international practices and World Trade Organization (WTO) rules, and create a fair environment for both domestic and overseas products. He also said China spent a long time forming its unified and standardized certification and accreditation system, which was set up before China's entry into WTO in 2001. There were previously two sets of quality authentication systems in China - one was established by the former State Administration for Quality and Technology Supervision, while the former State Administration for Exit-Entry Inspection and Quarantine set up the other.

From China Daily 09/10/2003

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New Healthcare Fund Planned

More than 11 billion yuan (US$1.3 billion) will be invested both this year and in 2004 to improve China's healthcare system and its emergency response capacity. Zhao Zilin, vice-director of the Planning and Finance Department under the Ministry of Health (MOH) made this remark at the two-day China Health Forum, which opened on Sep.10 in Beijing. The forum focuses on the construction of a public health and emergency healthcare system in the post-SARS (severe acute respiratory syndrome) period. The central government has already allocated 3 billion yuan (US$362 million) in treasury bonds to kick start the improvements, according to Zhao. The US$1.3 billion fund will be used to set up aid centres and hospitals for infectious disease treatment in cities and counties. Zhao said within three years the country will establish a public healthcare system covering both urban and rural areas which is multi-functional and responds swiftly to emergencies.

From China Daily 09/11/2003

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Procurement Policy Set Out

Foreign investors will soon be allowed to set up wholly owned sourcing centres in selected Chinese cities to help meet the growing procurement demand for Chinese-made products, a senior official at the Ministry of Commerce said on Sep.10. Foreign firms in the sourcing centres will be entitled to engage in the export-orientated sourcing business, entrusted product processing, as well as warehouse and information counselling services. Hu Jingyan, director of the Foreign Investment Administration Department under the ministry, revealed the move on Sep.10 at a seminar in the China International Fair for Investment and Trade being held in Xiamen, East China's Fujian Province. The State Council has given the go-ahead to the policy and the ministry is working on the practical regulations, which will be announced in the next few months, he said. The policy comes at a time when more and more multinationals are including China in their global procurement networks and gradually increasing their purchases of Chinese products. The value of products sourced by foreign companies in China reached US$30 billion last year. The global retail giants Wal-Mart, Carrefour and Metro alone purchased US$15 billion in the country last year, government figures showed. Hu said: "The lenient policy on the foreign-funded sourcing business aims to make China a more attractive global sourcing centre and actively promote quality and price-competitive Chinese-made products on the international market." Currently, foreign firms can establish Sino-foreign trade joint ventures and solely funded logistics companies in China to run import and export businesses. According to Hu, the minimum registered capital for a wholly foreign-owned sourcing centre will be about 30 million yuan (US$3.62 million). As for whether foreign firms can have tax refunds on the exported China-sourced products, a major concern of many investors, Hu said the new policy would refer to existing tax regulations for export-orientated foreign investment companies. "Generally speaking, foreign firms in the sourcing centres can have tax refunds on their exported products," he added.

From China Daily 09/11/2003

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Shanghai to Open up Its Legal Sector

Shanghai will further open its legal service sector to foreign companies as a lack of qualified lawyers is impeding the city's development, Vice Mayor Zhou Yupeng said on Sep.11. "A developed legal service is essential for Shanghai to attract foreign investment and help domestic companies expand abroad," Zhou told more than 30 representatives from overseas law firms with offices in the city at a round-table discussion on Sep.11. "The city will relax some of the restrictions ahead of other cities in the country," Zhou said. "We will gradually relax the restrictions," said Miao Xiaobao, director of Shanghai Justice Bureau. He added that the approval processes for foreign law firms looking to open offices in Shanghai will be simplified and cooperation between overseas and domestic law firms will be allowed in the future. "Domestic law firms will be allowed to act as a liaison or member office of an international law firm when conditions mature," he said. Miao also said overseas firms will eventually be allowed to hire local lawyers, and the city will make it easier for domestic companies to hire foreign law professionals. Foreign firms are pleased by the announcement, saying current regulations put too many restrictions on their activities. "If foreign law firms can cooperate with domestic counterparts in conducting business in the future as the city government promised, that could help us expand a large part of our business," said Danian Zhang, a partner with the Shanghai Office of Baker & McKenzie, a US-based law firm.

From China Daily 09/11/2003

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FM Spokesman: China's Military Policy Defensive

China's national defense policies and military deployments are aimed at safeguarding national security and territorial integrity, Foreign Ministry spokesman Kong Quan said Thursday. China's national defense policies and military deployments are aimed at safeguarding national security and territorial integrity, Foreign Ministry spokesman Kong Quan said Thursday. Kong Quan made the remark in response to a question relating to an annual report of the Pentagon on the military power of China, which was issued on July 30. He said China, as a sovereign state, had an independent foreign policy of peace and its national defense policy was defense-oriented. "We will keep on marching on the road of peace and development," he said. Some interest groups in the United States were attempting to create an excuse to sell weapons to Taiwan by overstating China's military force and expenditure and scare-mongering over the mainland's threat to Taiwan, he said. Taiwan was an inalienable part of China's territory and the Chinese government had always adhered to the basic principles of "peaceful reunification" and "one country, two systems", and would try its best to realize a peaceful reunification. "As we can see, the growth of the 'Taiwan independence' forces is precisely the greatest threat to stability across the Taiwan Strait," Kong said. Kong said the United States had repeatedly agreed to abide by the three Sino-US joint communiques, adhere to the one-China policy and to oppose Taiwan's independence. "We hope the United States would effectively honor its commitments," he said. "The facts speak for themselves: the international community regards China as an active force in maintaining world peace and promoting common development." China strongly opposes the United States allowing the Dalai Lama to visit the country and arranging visits for him with US leaders , the Foreign Ministry spokesman said. "The Dalai Lama is not simply a religious figure; he is a political figure living in exile who has long been committed to separatist activities and to undermining national unity,'' Kong told a regular press briefing. "We have lodged serious representations with the United States and urged the US side to abide by its promise that it recognizes Tibet as part of China and does not support Tibet independence,'' Kong said. He made these remarks in response to the Dalai Lama's three-week visit to the United States, which began on September 4, and his meeting with US President George W. Bush on Wednesday and US Secretary of State Colin Powell on Tuesday in Washington. The Chinese side has also urged the United States to stop interfering with the Tibet issue, which is China's internal affair, so as not to harm China-US relations, the spokesman said. He said the channel for contact between the central government and the Dalai Lama is unblocked as long as the Dalai Lama abandons his separatist activities, both verbally and with actions, and definitely acknowledges that Tibet and Taiwan are inalienable parts of China. Talking about the European Commission's new strategy document to guide European Union (EU) policy and action towards China, Kong said China appreciates and welcomes the EU's efforts to enhance China-EU relations. "The constantly expansion and deepening of comprehensive co-operation between China and the EU and the enhancement of co-ordination and consultation on international and regional affairs meet the interests of both sides and benefit world peace, stability and development under the current international situation,'' Kong said. Turning to the consultation among foreign ministers of the five permanent members of the United Nations Security Council on Iraq, Kong said the new UN resolution should be conducive to maintaining peace and order in Iraq, to promoting the Iraq's resumption of its sovereignty and to speeding up its reconstruction. "The full involvement of the UN role in the effort to reach this goal is indispensable,'' Kong said. He said China is seriously studying the proposal by the United States and supports some ideas proposed by France, Germany and Russia during the UN discussion. "We are willing to have in-depth exchanges of views with all parties and will take a constructive attitude in the consultations,'' he said, adding that China hopes consensus can be reached as soon as possible. At the invitation of United Nations Secretary-General Kofi Annan, Foreign Minister Li Zhaoxing will attend the consultations of the proposal in Geneva this weekend.

From http://english.peopledaily.com.cn/ 09/12/2003

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Beijing Urged to Act More Firmly Against Intellectual Property Theft

The US urged China yester-day to crack down more harshly on counterfeiters and other intellectual property thieves who may be costing foreign companies as much as $25bn (?22bn, ￡15.6bn) a year in stolen copyright, fake products and brand violations. William Lash, US assistant secretary of commerce, told senior Chinese officials Washington wanted to co-operate with Beijing in its efforts to curb rampant violations of intellectual property rights (IPR) rather than seek to sanction China at the World Trade Organisation. "We don't doubt the desire [of China] to enforce or make the arrests," Mr Lash said. "We did not threaten any type of WTO action." Nevertheless, China needed to expend greater efforts in tracking down criminals and punishing them more harshly if it was to make inroads into the problem, Mr Lash said. The US government has offered help in training of enforcement and court officials in China. One particular problem was that although much of the pirating - such as booming trade in fake digital versatile discs (DVDs) - incurs an economic cost, the sale of fake vehicle parts, aircraft components, pharmaceuticals and alcohol has led to a heavy loss of human life. "IPR crime is as problem atic as street crime," Mr Lash said. China's problem was not Beijing's awareness of the scale of the IPR problem but the willingness of local governments to crack down on an entrenched trade run by powerful organisations that Mr Lash described as having distribution systems that "would rival mini-Wal-Marts". The total cost to foreign companies in China of various forms of IPR violation was $20bn-$25bn, Mr Lash said. The issue has become one of several irritants in a bilateral trade relationship that many US manufacturers say is skewed in China's favour. China's trade surplus with the US rose to $103bn in 2002, surpassing that of Japan for the first time. Many American manufacturers say the imbalance stems from a renminbi that is up to 40 per cent undervalued.( by James Kynge)

From Financial Times 09/13/2003

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Finance Ministry Launches Budget Drafting for 2004

The budget layout for central government departments in 2004 has been launched. According to the Ministry of Finance, central government departments are drafting budgets for subordinate second-grade departments and also its departmental annual budget. The ministry expects only a minor increase of central financial revenue in 2004 and the imbalance of revenue and expenditure remains an acute problem. Thus, the budget authority has been committed to a "strict and prudent" principle in drafting budgets for central government departments. The Ministry of Finance hopes that not any new project will be funded in principle except the projects already set by the State Council, China's cabinet. The ministry will also select some prominent funding projects to "follow up and assess cost-efficiency" in a bid to establish a budget project cost-efficiency assessment index system. The year 2004 will hopefully be a watershed to China's central budgeting. The ministry will work to change the pattern of "highlighting distribution but ignoring management", improve basic expenditure budget for fixed number of personnel and fixed amounts and gradually cover government property management in budget management. More stand-by funds likely In the budget plan for central government departments in 2004, what deserves attention is the high probability of a 2 percent increase of stand-by funds for the departments so as to offset possible temporary adjustment in the budget implementation process. According to the established rules on departmental stand-by funds, the pilot units with a fixed number of personnel and a fixed amount of budgets can set their stand-by funds at a ceiling of 3 percent of public funds. Starting in 2004, such funds can be arranged. Meanwhile, stand-by funds set according to classes, grades and rules should be singled out and explained in the replying document. According to financing officials, the reason to raise stand-by funds is to "offer more flexibility in departmental budgets" so as to cover sporadic, temporary expenditure. Thus, the ratio of readjusting departmental budgets could be effectively lowered and the department could function better. "During the peak SARS period, we received a large sum of applications to purchase respiratory machines. And each case was so urgent that we had no time to review it before granting. I was wondering then that why we had no idea of the use and effectiveness of the substantial funds earmarked for medical devices procurement," said one official of the Ministry of Finance. "We must address the problem of 'highlighting allocation but ignoring management." Follow up budget projects and assess cost-effectiveness Sources form the Ministry of Finance said that the ministry would scan its "project database" in 2004 and redefine projects of common departments and institutes. Some basic expenditure projects unqualified as project budget expenditure will be excluded in the database. The ministry will review with a unified standard all key state projects, and special operation projects listed in departmental budgets. Some projects that are bound to be carried on to the next year will also be reviewed after consulting with the department. Traditionally, the number of projects and the sum of capital listed in budget draft applications to the Ministry of Finance are "too much to be fed up with current financial resources", according to financing officials. As a result, the ministry requires that all departments should select, research, preview and list in a rational sequence their application projects in terms of urgency and priority. The ministry will first fund those urgent, feasible projects in line with the year's financial situation. Special operation projects and those over-year projects will then be arranged while other common projects of central government departments follow suit according to the "project sequences". Additionally, departments are also required to attach a cost-efficiency report from 2003-2004 over-year long budget projects as an important reference to apply for the 2004 budget. The ministry will also select some prominent funding projects to "follow up and assess cost-efficiency" in a bid to establish a budget project cost-efficiency assessment index system.

From China.org.cn 09/17/2003

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Premier Proposes to Set Up a Free Trade Zone Within SCO

Premier Wen Jiabao Tuesday proposed to set up a free trade zone within the Shanghai Cooperation Organization (SCO). The proposal is one of three proposals to boost regional economic cooperation Wen made when he spoke to the talks attended by the prime ministers of the six SCO members Tuesday morning. The proposals are: -- To promote the facilitation of trade and investment in a bid to realize the smooth circulation of goods within the framework of the SCO as well as to reduce and eliminate non-tariff barriers like those in customs service, quarantine, standards and transportation. -- To set certain large projects on economic and technological cooperation and give priority to those in transportation, energy, telecommunication, agriculture, home appliances, light industry and textile. -- To set a long-term objective for regional economic cooperation and gradually set up a free trade zone within the SCO.

From http://www1.chinadaily.com.cn 09/23/2003

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JAPAN: Gov't to Launch Food Crisis Management Team

TOKYO - The Ministry of Agriculture, Forestry and Fisheries said Friday it will launch a new crisis management team next Monday to deal with food safety problems, such as large-scale food poisoning. The new team will consist of eight experts from bureaus and divisions within the ministry, including the bureau of food consumption and safety that was set up in July, ministry officials said.

From http://www.japantoday.com/ 08/29/2003

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Law to Be Revised to Promote Prefectural Mergers

TOKYO - The government has decided to submit a bill to the next regular Diet session starting in January 2004 to revise the Local Autonomy Law, with the aim of promoting prefectural mergers as part of its administrative reform plan, government sources said Friday.If the bill passes the Diet, it will be the first revision to the article on such mergers since the law was implemented in 1947.

From http://www.japantoday.com/ 08/30/2003

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Gov't Vows to Make Old Boy Agency Salaries More Transparent

The government is determined to make the murky finances of independent administrative agencies more transparent amid accusations that fat cats running former governmental bodies are getting fatter under a veil of secrecy, the Mainichi has learnt. A plan to disclose the amount these agencies pay to their employees, including severance pay for retiring executives, will be presented sometime Monday to a government reform panel. The information to be publicized is expected to include the salaries other organizations doing similar work pay their employees to prevent the former public bodies excessively rewarding their workers, especially retired mandarins occupying top jobs. Transforming money-draining governmental research institutes and public corporations into more budget-conscious independent administrative agencies was one of the top priorities of Prime Minister Junichiro Koizumi's reform agenda. Sixty-two such agencies have been created since April 2001 and they will be joined by 30 new entities next month following the abolition and merger of public corporations, many of which provide cushy post-retirement jobs for high-ranking national government bureaucrats, a practice known in Japanese as "Amakudari." The government hoped that the reforms would force the new agencies to restructure themselves and shed dead wood. However, several surveys conducted last year showed that the opposite was the truth. A Mainichi study conducted in November last year revealed that the number of senior officials at 59 administrative agencies has skyrocketed from 93 to a whopping 286. Another survey conducted at around the same time by the largest opposition party, the Democratic Party of Japan, showed that the heads of 11 independent administrative agencies receive an annual salary of over 20 million yen. Faced with these facts, the government was under pressure to introduce measures to make their cost-cutting efforts more effective before public corporations are transformed into independent administrative agencies in October this year. Under the government plan, the names of retiring executives won't be publicized alongside the amount of their severance payments. Instead, the periods of their employment will be disclosed to make it easy for observers to identify who collected how much. Moreover, salaries for employees will be published alongside corresponding figures for national government bureaucrats, fellow administrative agencies as well as private companies. The government intends to disclose the data through independent administrative agency publications and Internet homepages early next year.

From Mainichi Shimbun 09/01/2003

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Japan Plans Biometric Passports

Japan will introduce biometric passports in about a year to work with the United States to combat terrorism, officials in Tokyo said this weekend. This is a response to Washington's decision not to grant visa waivers after October 2004 to people with non-biometric passports. It is not without political cost, because recent moves toward national IDs in Japan have drawn criticism and concern about Big Brotherism. The passports will be smart cards, the chips inside them holding fingerprints, retina scan data or other biometrics to confirm identity. Japan is one of 27 countries that do not require visas for its residents to enter the United States for short stays.

From http://pacific.bizjournals.com/ 09/01/2003

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Koizumi's Failings Linked to Inflexible Fiscal Policy

Some economists compare it to trying to lose weight by fasting when the real solution is exercise, while others talk about repairing an airplane's altimeter when it's the engine that needs attention. However you look at it, Prime Minister Junichiro Koizumi's economic policy has failed to turn around Japan's stagnant economy. When Koizumi became prime minister in April 2001, backed by record approval ratings, he promised to restrain the rapidly ballooning fiscal debt and pledged a clear departure from his predecessors' heavy dependence on huge public works spending. "The economy will not recover without structural reforms," he said, and promised to help spur new industries and introduce competition to areas that have long been strictly regulated -- such as education, medical services and social welfare. His efforts were largely unsuccessful, however, meeting with strong opposition from the old guard within his party and bureaucrats with influence over such sectors. Economists meanwhile say Koizumi has been shackled by the numerical goals he set to limit budget deficits. The lack of flexibility in his fiscal policy resulted in a failure to beef up the business sectors needed to act as the nation's main economic engine. "Koizumi has relied too heavily on the ideal of a balanced budget," said Kenji Yumoto, chief senior economist of Japan Research Institute Ltd. Japan's current fiscal debt has hit the dizzying height of 450 trillion yen -- equal to 11 years of tax revenue. If stacked in bundles of 10,000 yen bills, according to the Finance Ministry, the amount would tower 500 times higher than Mount Everest. To stop the red ink from flowing, Koizumi declared a cap on new government bond issues at 30 trillion yen for fiscal 2001. But he was forced to back down when the government compiled a supplementary budget in late 2002, announcing it would issue nearly 5 trillion yen in new government bonds, partly to finance economic stimulus measures. Due to dwindling tax revenues amid the ongoing recession and the increasing social welfare burden created by the nation's aging population, new bond issues are expected to reach 36.4 trillion yen in the current fiscal year -- almost half the size of the national budget. Koizumi's other numerical target also appears unreachable. The prime minister hopes to realize a primary budget balance -- a condition in which expenditures excluding debt-servicing costs are fully covered by tax revenues -- in the early 2010s. But Japan is expected to post a primary budget deficit of 19.6 trillion yen in fiscal 2003, up from a deficit of 18.9 trillion yen the previous year. In fiscal 2001, the deficit was 13.7 trillion yen. "Costs for social services grow about 1 trillion yen every year," Yumoto said. "So in reality, the government needs to cut public works and other spending by as much as 3 trillion yen each year to secure the primary balance in the early 2010s." The initial national budget slipped 1.5 trillion yen to 81.2 trillion yen in fiscal 2002, only to grow to 81.8 trillion yen this fiscal year. If the government continues to put off making drastic cuts to expenditures, economists have warned, it will eventually have to raise the consumption tax, a major source of tax revenue for the national budget. Hiroshi Okuda, chairman of the Japan Business Federation (Nippon Keidanren), expressed serious concerns about the nation's health in January. He proposed raising the consumption tax by 1 percentage point every year beginning in fiscal 2004 until it hits 16 percent in fiscal 2014. But Koizumi, apparently hoping to maintain his popular support, shrugged off the proposal. He has repeatedly said that a tax increase will not happen while he is in office. Naoyuki Yoshino, a professor of economics at Keio University, said the country's bond issues have almost reached the saturation point in terms of the future burden of interest payments. This could lead to a sharp tax increase in the future, he said. Japan Research's Yumoto said the government should not be so closely focused on limiting budget deficits with numerical targets while the country remains mired in the economic doldrums. "Basically speaking, the government should freeze a cap on budget deficits when the economy starts to shrink," he said. "But Koizumi has stuck to his fiscal goals, even while the economy is in a state of deflation. So the government failed to allocate enough budgetary funds for economic stimulus measures." Various economic data have turned south during the past 2 1/2 years. In response, Koizumi released three economic-stimulus packages, featuring steps to create jobs, support small and midsize businesses and promote information technology. These steps have had little effect on the economic data, however. Japan's real gross domestic product -- which stood at 3.2 percent in fiscal 2000, the year before the launch of Koizumi's first Cabinet -- sank to minus 1.2 percent in fiscal 2001. In fiscal 2002 it was 1.6 percent. Meanwhile, the unemployment rate on a monthly basis leaped to a record 5.5 percent twice last year and in January this year. And in April, stock prices on the Nikkei average tumbled to 7,607.88, the lowest level in more than 20 years. In August, the Nikkei had recovered to above 10,000 but remained below the level seen when Koizumi came into office. Economists have welcomed the fact that Koizumi has not resorted to economic-stimulus measures, blindly injecting money into public works projects such as highways, airports and bridges like his predecessors. Public works spending for fiscal 2003 stands at about 8 trillion yen, down more than 1 trillion yen from fiscal 2000. The current level is close to that of fiscal 1992. But Naohiko Jinno, a professor at Tokyo University, believes Koizumi's reduction in public works spending has received more credit than it deserves. "His stance (on public works) merely returned to what old leaders did in the 1980s," he said. Koizumi's moderate reduction in such spending was no different to what past leaders of the ruling Liberal Democratic Party had done for several years in the past, he said. In 1984, the government said it would balance the budget without tax increases and cut annual spending for public works by about 2 percent each year. This austere policy continued until 1990, when the asset-inflated bubble economy burst, Jinno said. He said the priority of any economic policy is to find the real cause of the ongoing recession and bring about economic recovery. This would result in an increase in tax revenue, he said. Jinno said that privatization, as Koizumi has advocated, will not lift the economy. The government must find new industries that can drive the economy, he said. As an example, Jinno said the government must boost investment to create value-added products, such as information technology and intellectual property rights, while allocating a greater proportion of the budget to promoting science and education. (by Hiroko Nakata)

From The Japan Times 09/02/2003

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Lawmaker Wants Transplant Law Revised

Six years after the implementation of the Organ Transplant Law, moves are afoot to alter one of its core conditions for using organs from brain-dead donors -- the donor's prior consent. Lawmakers (from left) Shunichi Yamaguchi, Taro Nakayama and Taro Kono announce the results of a survey of Diet members regarding the Organ Transplant Law on July 28. Heading the movement is Taro Kono, a member of the House of Representatives who made headlines by donating part of his liver to his father, former Foreign Minister Yohei Kono, in a transplant operation last year. Since the law took effect in 1997, there have only been 23 organ transplants from brain-dead donors. Some medical experts who say the legislation is meaningless unless the strict conditions are eased see Kono's actions as a chance for the law to be revised. "The fact is, in the world of Japanese medicine, there is no way to save a patient other than to slit open the belly of a perfectly healthy person and remove an organ," Kono told a nonpartisan gathering of Diet members studying bioethics issues in late July. The issue of transplants from brain-dead donors was so controversial that political parties allowed lawmakers to vote on the legislation based on their own conscience, rather than along party lines. Several stiff conditions were put in place to ensure that the process would be ethical and transparent. As a result, according to critics, the chances of receiving an organ from a brain-dead donor in Japan are very slim. But the alternative -- live donor transplants -- can hurt a healthy person, Kono said. Kono has submitted to the Liberal Democratic Party's committee on brain death, bioethics and organ transplants a draft of amendments to the Organ Transplant Law that would enable organs to be transplanted with the consent of the family of the deceased. The transplant operation would proceed only if there was no clear indication that the person did not want his or her organs to be donated. Also under the amendments, children could become organ donors. At present, the law bans organ donations from people under 15, effectively closing the door to children who require transplants and forcing them to seek medical help overseas. A government survey conducted last year showed that only 9 percent of people surveyed had cards indicating their consent to donating organs in the event of brain death. Under such circumstances, according to critics, it is unlikely that the number of organ transplants from brain-dead people will increase anytime soon. Easing the criteria so that familial consent would suffice would help make up for the small number of people who have expressed their willingness to make an organ donation, Kono said. But the idea has met with stiff opposition from lawmakers across the political spectrum. Many see the "personal consent" requirement as one of the major pillars of the law and are hesitant to review it. The LDP panel has not accepted Kono's proposal, and it has been put on the back burner. "Securing the consent of the individual is the foundation of the transplant law," said Takashi Yamamoto of the opposition Democratic Party of Japan. "If it is to be scrapped from the list of conditions, it should not be done through amendments to the law but should instead require the drafting of new legislation." Yamamoto, an opponent of transplants from brain-dead donors, said Japan's present medical environment does not allow patients to gain sufficient information regarding their condition. They are at a disadvantage compared to doctors, he said. "If the individual's intentions are not respected, they may be forced into donating organs even if it is not what they wish," he said. The health ministry has meanwhile made no active effort to study the issue, especially as the political schedule is unclear with a general election rumored for the fall. "Prior consent was one of the most pivotal issues when the law was enacted, and it would be difficult to change it," a Health, Labor and Welfare Ministry official said.

From The Japan Times 09/02/2003

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Nagano Bans Smoking in Public Facilities

NAGANO - Nagano Gov Yasuo Tanaka on Tuesday put into effect a plan to ban smoking at nearly all prefectural public facilities in the first such blanket prohibition in Japan. Tanaka told a press conference the ban would enter into effect at 2 p.m. Tuesday. He said he has asked the prefectural assembly to cooperate and expressed hope that boards of education will also ban smoking at public elementary and junior high schools.

From http://www.japantoday.com/ 09/10/2003

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Koizumi Makes Abe No. 2

Longtime ally Taku Yamasaki gets pushed aside in the political wheeling and dealing. Flush from his re-election victory as head of the Liberal Democratic Party, Prime Minister Junichiro Koizumi went into combat mode Sunday with a stunning political appointment. He picked Shinzo Abe, deputy chief Cabinet secretary, as LDP secretary-general. It makes Abe, 49, the second most powerful figure in the party even though he is only in his third term as a Lower House member. The appointment was seen as a strategic move ahead of the Lower House election expected in the fall. Abe will be at the center of decisions on who receives an official LDP endorsement and campaign funds for that election. The appointment amounted to a bombshell. Koizumi won re-election on Saturday. One thing Abe has in common with Koizumi is popularity among the public. Abe, point man for the government's dealings with North Korea, has advocated a tough stance against Pyongyang. With public opinion decidedly against North Korea over the abduction issue, Abe's hawkish stance should appeal to voters. Abe is a political thoroughbred. His father, Shintaro, was a former foreign minister often mentioned as a possible prime minister before his death in May 1991. His grandfather, Nobusuke Kishi, was prime minister from 1957 until 1960. To make way for Abe, Koizumi pushed his political ally Taku Yamasaki into the largely ceremonial post of party vice president. Koizumi had wanted to retain Yamasaki as secretary-general, but he could not ignore growing calls to remove him before the Lower House election, due to a scandal involving an alleged mistress, and because he failed to press the party's stand on policy to the government. Mikio Aoki, LDP Upper House caucus secretary-general, and former Prime Minister Yoshiro Mori met with Koizumi on Friday night and gave him an ultimatum-either Yamasaki goes or they would resign their posts and stop cooperating. Mori threatened to step down as faction leader if Koizumi did not listen. Koizumi did not want to appear as if he was bending to those in the party who may not be totally behind his structural reform policies. Aoki, for one, has openly criticized Koizumi's plan to privatize the postal system. As a compromise, Yamasaki was kept on as a party vice president and the selection of the much younger Abe likely threw many political heavyweights off balance. Koizumi also rounded out his top party picks on Sunday. He retained Mitsuo Horiuchi as chairman of the General Council and named Fukushiro Nukaga as chairman of the Policy Research Council. Horiuchi came out in support of Koizumi before the LDP campaign started even though some elements of his faction were opposed to Koizumi. While Nukaga is an up-and-coming member of the faction headed by former Prime Minister Ryutaro Hashimoto, he also has close ties with Aoki and supported Koizumi in his re-election bid. Nukaga's appointment strengthens the Koizumi-Aoki alliance.

From http://www.asahi.com/ 09/22/2003

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Koizumi to Extend Antiterror Law

TOKYO - Prime Minister Junichiro Koizumi will resolve in his policy speech to the Diet to have a law on Japan's cooperation in the U.S.-led fight against terrorism extended for two years before its Nov 1 expiration, government sources said Tuesday. In the speech to be given Friday on the opening day of the extraordinary parliamentary session, Koizumi will also pledge to provide his utmost support for the reconstruction of Iraq, including financial contributions, the sources said. (Kyodo News)

From http://news.japantoday.com/ 09/24/2003

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Ishiba Willing to Revise Defense Outline

TOKYO - Japan's defense chief Shigeru Ishiba expressed his willingness Wednesday to revise the defense plan outline, saying Prime Minister Junichiro Koizumi has instructed him to seek ways to deal with terrorists and ballistic missiles. "If the government as a whole is for reviewing the defense plan outline, we would like to provide materials for discussions and to review it," Defense Agency Director General Ishiba said. (Kyodo News)

From http://news.japantoday.com/ 09/25/2003

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Labor-Management Roadmap Issued

It will be easier next year for companies to respond to labor strikes with lockouts and for public businesses to employ substitute workers when their unions strike, the Ministry of Labor said Thursday. The ministry released its roadmap for improving labor-management relations Thursday and sent it to the Korea Tripartite Commission. The ministry said that if the commission failed to reach an agreement on the proposal by the end of this year, the related laws would be amended during the first half of next year. The roadmap will also make it easier for unions working in essential industries such as waterworks, power, communications and oil-refining to strike. The clause calling for arbitration by authorities before a strike will be removed, enabling the unions to start start legal strikes more easily, as long as they respect the minimum requirement prior to striking. Also, the workers who work full-time for the union will still be allowed to receive limited payment assistance. The ministry's roadmap will grant companies more flexibility in laying off workers. It deleted the regulation calling for companies to be subject to prosecution for wrongful discharges, and guaranteed expedited negotiations when companies discharge workers for management reasons. At the same time, the roadmap also guaranteed basic labor rights to union members. The ministry also announced three steps for reforming the labor-management relationship: minimizing the costs caused by labor disputes, constructing a stable labor market and alleviating the gap between the working classes. The ministry also said police forces will be mobilized once strikers occupy companies' major facilities or block their entrances. The Labor Ministry's announcement, however, is expected to stir up controversy until the roadmap is legislated, as both labor and management expressed strong opposition to it. The ministry officials who designed the roadmap said additional reformation plans will be reported to the government in the near future. (by Moon Gap-sik)

From http://english.chosun.com/ 09/04/2003

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Aging Population and Policy Shift

United Nations Secretary-General Kofi Annan says in his report to the UN Millennium Summit, ``Governments must review their policies to make sure they are not denying their people the opportunities offered by the digital revolution.'' Nitin Desai, UN under-secretary-general for economic and social affairs, states, ``It is in the interests of those who have the technology to transfer it... 80 percent of the world's population on the wrong side of the divide represents a huge untapped market for those on the right side.'' It is significant that the UN is seriously taking the issue of the global gap between the IT haves and have-nots. Despite the collapse of many dotcoms in 2000 that fuelled the techno-euphoria of the late 90s, the low period for the dotcoms industry is the correction process of the initial bubble in the high-tech industry and an adjustment to the financial market's infrastructure. The continuing productivity gains of dotcoms will generate economic growth. However, the consequential digital divide will increasingly widen between nations and within nations. Today's digital divide is certainly the risk that we face and must overcome. Of many socio-economic issues following the digital divide, an issue of implication from the ageing baby boom generation is serious indeed, as they began moving past the age group of 55 since 2001. In most industrialized nations, the number of people over the age of 60 will triple by 2030, creating a ``retirement crunch.'' Susan Jacoby writes in a column for the AARP Bulletin, ``Only a generation ago, many experts were predicting that the United States, with its rapidly aging population, might someday come to resemble a vast nursing home. Conventional wisdom held that increased longevity would inevitably produce a sicker and frailer population. But then the unexpected happened: disability rates among older Americans started declining dramatically _ and at an accelerating pace.`` A study by AARP's Public Policy Institute concludes that US nursing homes have roughly 500,000 fewer residents than would have been expected had rates of use held steady over the past 20 years _ a 26 percent decline roughly in line with the decline in disability rates.'' Dr T. Franklin Williams, the director of the American Federation for Aging Research, says in the same AARP Bulletin, ``Today's healthy 70-year-olds are doing what 50-year-olds did a generation or two ago. It's not about how long people live but about how well they're able to live.'' Another report from the Center for Retirement Research at Boston College claims about a 2 percent increase in the participation rate of the labor force among older workers this year, mainly due to the shrinking retirement savings of millions of older people. Average life expectancies have risen from 46 to 66 years over the past 50 years and there has been a steady drop in the retirement age in most Organisation for Economic Cooperation and Development countries. Consider the rapidly aging Korean society in general. The traditional pension plans in Korea are in their infant stage and individual savings and family support are the main means of income for the elderly. It is also increasingly difficult to find and keep a job for older workers in Korea. This places a tremendous burden on the nation's infant retirement pension and safety net welfare programs. The early retirement of an aging population and long life expectancies are causing a large-scale potential social cost and loss of economic productivity of the labor force. Korea is no exception to this and it must be prepared for the onslaught of change, ``a revolutionary shakeup within the economic structure.'' Policymakers of the Roh administration must be aware of this and need to implement a paradigm shift in its policies. All decision makers during the new phase of Korean democracy must be more pragmatic, more inquisitive in thinking and skeptical about the ``doctrinaire economic rationalism.'' A new range of social infrastructure must be established to accommodate revolutionary change in demographic composition. Both the government and community must attend to the negative impact from the digital divide that we have. The Korean government must take a serious approach in reshaping the quality of the labor force. The training and portable education to meet the change in the world would only make them adjust to new paradigms. A positive attempt to block the wasting of enriched human resources of the aging generation must be in place. The social infrastructure and economic environment must encourage them to stay on in the workforce as great users of technology. The impact of the digital divide must be absorbed by a national strategy of human resources. This demands a significant shift in policy. The new Korean government must firmly address the issue of the digital divide and reach out beyond the nation's boundaries. (by Sohn Hong-keun)

From The Korea Times 09/09/2003

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Security Law Violations Decrease

The number of South Koreans charged with violating laws prohibiting pro-North Korean activities dropped to 48 in the first half of the year from 506 in 1999, the Ministry of Justice said yesterday. In a report to the legislation and judiciary committee of the National Assembly, the ministry said the number of citizens who violated the National Security Law fell to 231 last year from 247 in 2001.The ministry expected the number to reach the lowest level this year since 1999.Under the law, South Koreans are strictly prohibited from taking part in pro-North Korean activities or making unauthorized trips to the North. The percentage of those accused of violations but not indicted dipped to 19 percent this year after staying at the 30-percent level from 1999 to last year. However, the percentage of violators taken into custody soared to 72.9 percent in the first half of the year from 56.7 percent last year, 51.1 percent in 2001, 45.5 percent in 2000 and 61.7 percent in 1999.

From The Korea Times 09/09/2003

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Bill on Merged Exchange to Be Submitted in Nov

The government plans to submit a bill on the establishment of a merged exchange to the National Assembly in November, as part of its move to consolidate the nation's three equity and futures exchanges. The Ministry of Finance and Economy said on Tuesday (Sept. 23) that it will make public the proposed bill on Wednesday and hold a public hearing on Oct. 10 at the Korea Stock Exchange. The Securities Trading Act and the Futures Trading Act are also expected to be revised under the new bill. The new unified exchange is to be based in the southern port city of Busan and will manage the operation of underlying securities, the Kosdaq market and the futures market. It will take up the current responsibilities of the Korea Stock Exchange, Korea Futures Exchange, Kosdaq Stock Market, Korea Stock Dealers Association and the Kosdaq Committee.

From http://www.kois.go.kr/ 09/23/2003

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INDONESIA: House Passes New Money-Laundering Legislation

The House of Representatives passed on Tuesday a new money-laundering law to help the country avoid financial sanctions from developed nations. "The new law is aimed at combating money laundering, as well as other related crimes," Minister of Law and Justice Yusril Ihza Mahendra told reporters. Yusril said that the new law was needed because the old one, issued last year, was deemed insufficient by the Paris-based Financial Action Task Force (FATF) to combat money-laundering crimes. FATF is a global money-laundering watchdog set up by developed nations of the Organization for Economic Cooperation and Development (OECD). Under the new law, for instance, there is no limit on the size of financial transactions that can be labeled as suspect. Under the previous law, only financial transactions involving more than Rp 500 million could be labeled as suspect, and had to be reported to the authorities. "Any transaction suspected to involve money laundering using a financial institution should be reported, even if it is only for one cent," Yusril said. The new law also reduces the reporting deadline for suspicious transactions to three days from 14 and widens the definition of money laundering to include gambling. Additionally, the law facilitates active cooperation with other countries to combat cross-border money laundering. Indonesia has been on the list of uncooperative countries and territories (NCCTs) of the FATF since June 2001. The FATF will convene early next month to decide penalties on uncooperative countries. Sanctions against NCCTs could include imposition of premium charges on transactions with foreign companies, halting correspondence between Indonesian banks and their counterparts in FATF countries and rejecting Indonesian letters of credit. The government hopes that Indonesia will not be penalized after approval of the new money-laundering law, although hopes for release from the blacklist could still take time, as the FATF would first wish to be convinced of the seriousness of the government in implementing the new law. The U.S. has been particularly aggressive in pressing Indonesia to adopt international standards in the fight against money laundering since the Sept. 11 terrorist attacks. Analysts have said, with rampant corruption and weak legal enforcement, Indonesia is a safe haven for money laundering. Indonesia has joined with Asian and Western countries to apply measures to cut financing for terrorist groups. The measures include the establishment of a financial transaction and report analysis center (PPATK). Such an agency is tasked with receiving and analyzing reports on suspicious financial transactions. Following the Bali bombings on Oct. 12 last year and the arrest of several terrorist suspects, the government has stepped up measures to tighten the country's financial system. The fight against money laundering is also included in the list of government post-International Monetary Fund economic reform programs, which was unveiled on Monday. According to a government White Paper, banks must implement a know-your-customer principle in a bid to detect suspicious transactions. The requirement will also be adopted by the country's small rural banks. Chairman of PPATK Yuinus Husein hoped that approval of the new money-laundering law would also pave the way for the FATF to remove Indonesia from the NCCT list. "We shall report progress on the money-laundering law to FATF and other foreign institutions," he said.

From http://www.thejakartapost.com 09/17/2003

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MALAYSIA: Kuala Lumpur Legalizes Rallies Ahead of Vote

A ban on election rallies in Malaysia imposed 25 years ago is being lifted ahead of a looming general polls, but the move has brought little cheer to opposition parties, officials said yesterday. The Malaysian government imposed a blanket ban on large, open-air election rallies in 1978, citing security concerns while authorities were trying to stamp out a communist insurgency that was finally defeated several years later. However, opposition party members have long accused the Malaysian government of imposing the ban to restrict their support, and complained that police permits will still be required to hold election rallies. The Election Commission said the ban would be revoked for the next general elections, expected to be held by early next year. Commission Chairman Abdul Rashid Abdul Rahman told The Star newspaper that the relaxation will ensure fair play in the elections, the first in 22 years in which the governing National Front coalition will not be led by Prime Minister Mahathir Mohamad. He is due to retire in coming weeks.

From http://www.etaiwannews.com/ 09/18/2003

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Singapore to Amend Maritime Laws to Meet International Security Guidelines

Singapore's Maritime and Port Authority (MPA) says it plans to carry out exercises to help prepare commercial ships deal with terrorist threats. It is amending the Merchant Shipping Act to meet security measures spelt out by the International Maritime Organisation. The measures have to be in place by next July. Even as the world prepares to commemorate the second anniversary of September 11 attacks, security analysts are not letting up on any terrorist scenarios. This include fears that ships could be used as a means of mass destruction. A sizeable portion of Singapore's international trade is seaborne, hence the urgent need for the MPA to quickly comply with enhanced security requirements spelt out by the International Maritime Organisation following September 11."Companies will need to have a company security officer. Ships will need to have a shipboard security officer. They must have their security plans in place. There must be procedures to check people going on board and so on," said MPA chief executive Lui Tuck Yew. "These are things we have made known to them through a process of dialogue. We have also approved certain recognised security organisations so that they can go and do the assessment on our behalf for some of the security plans being developed." "We hope to get all these in place well before July 2004 so that we can do some table top exercises and war gaming and ensure that everybody is on the same page," he added. MPA said that Singapore's ship owners and port operators are taking steps to comply with the requirements, and those who need help in identifying training providers will be given assistance. Besides cooperating with the local shipping community, MPA is also tapping the expertise of foreign partners. "We have been sharing our plans with what we are going to do in the United States regarding maritime security," said Rear Admiral Charles Wurster, US Coast Guard commander. "I visited your Police Coast Guard and saw some of their training facilities and saw some good examples that we might emulate in the US," he said. (by S Ramesh)

From http://www.channelnewsasia.com 09/09/2003

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ASEAN Unveils Action Plan to Protect Against Cyber Attacks

Southeast Asia's telecom and IT ministers have unveiled an action plan to help shield their countries' communication networks from attacks. This follows the recent spate of computer virus attacks that caused millions of dollars in damage. Each member of ASEAN will have a national Computer Emergency Response team in place by 2005 to handle cyber-attacks and share expertise with their neighbours. The ministers, who wrapped up a two-day meeting in Singapore on Friday, are also trying to make it easier for companies to exchange telecoms goods and services, and to invest in the region. So they will ease product testing requirements by 2005. As a start, Singapore will soon launch separate talks with Indonesia and Brunei on such testing arrangements. Dr Lee Boon Yang, Singapore's Minister for Information, Communications and the Arts, chaired this week's talks. On ASEAN's response to the specific cyber threat, he told Channel NewsAsia, "I look at it as a pre-emptive measure in the sense that the more we utilise ICT, the more the Internet gets involved in our daily life and work, the more vulnerable we are to any threats against our cyber-security. "The ministers also discussed market integration. Asked if progress was made on freeing up services, Dr Lee said, "Increasingly there's recognition, especially when WTO commitments come into operation, that services cannot be excluded and there's a consensus within ASEAN that we should also try to minimise -- in our context the services, like telecom services, looking at how we can further integrate our telecom sectors," Dr Lee said. "Having a common framework for telecom equipment could be the start, precursor of more liberalisation and more relaxation for telecom services within ASEAN countries. "The ministers also met with leaders from the private sector. "They highlighted for instance there should be relaxation as far as regulations are concerned, governments should be more pro-active in helping ICT industry leaders to reach out to their customers, to proliferate usage of technology," Dr Lee said. "One area I thought was particularly interesting, one industry leader point out that within ASEAN itself, there's a dearth of ASEAN content and if you want to proliferate, want greater usage of ICT, there should be efforts made to build up ICT content." (by Dawn Teo)

From http://www.channelnewsasia.com 09/19/2003

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THAILAND: TRT Pushes City Reform Bill

The ruling Thai Rak Thai party is pushing for its own draft legislative amendments to transform Bangkok's 50 districts into 10 metropolitan zones, each with an elected mayor to be picked by a metropolitan council via indirect election. Wattana Sengpairoh, a Thai Rak Thai MP who sits on a House sub-committee working on amendments to the 1985 Bangkok Metropolitan Administration Act, said the panel agreed the Bangkok governor and mayors should come from elections. Under the panel's draft amendments, the governor would be directly elected by Bangkok residents while the mayors would be picked by a 30-member metropolitan council via indirect election. The governor would make a shortlist of nominees for the metropolitan mayor post and send it to the council for selection, Mr Wattana said. The panel was assigned by Deputy Interior Minister Pracha Maleenond to draft amendments to the BMA Act. Another panel set up by former interior minister Purachai Piumsombun, was also working on similar draft amendments. Mr Wattana said the two panels had the same views about the elections of the city governor and mayors. The two panels would get together on Sept 1 to discuss their draft amendments.

From http://search.bangkokpost.co.th/ 2003/08/30

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Govt to Ban Firearms in 5-6 Yrs: PM

The sale of firearms to the public will be banned within the next five or six years, Prime Minister Thaksin Shinawatra said yesterday. "Thailand is a peaceful country that will no longer sanction the use of guns," he said. "Gun sellers should start choosing a new profession." Regarding the planned immunity for owners who surrender their illegal weapons, the prime minister said his government was negotiating with ranking senators to push for quick passage of a draft bill. The bill is expected to be up for Senate deliberation this month. In another development, nine senior government officials yesterday testified in court to defend the enactment of two anti-terrorism decrees. The Constitution Court heard the government's side of the story after hearing testimony from the decrees' opponents on Thursday. Lawmakers had petitioned for a judicial review, arguing that the government lacked the justification to issue the rules in the form of decrees rather than by an act of Parliament. Legal and security officials defended the government for bypassing the parliamentary scrutiny. Atchaporn Jaruchinda, a senior drafter of laws at the Council of State, said the government had rushed to enforce the decrees because of the growth in terrorist activity in the Southeast Asian region. "Thailand has detected the presence of suspected terrorists and urgently needs a special law in order to stem the influx of such people," he said. He said the government had decided to bypass parliamentary deliberation because it feared that lawmakers would stall enactment while mulling the legal definitions of terms relating to terrorism contained in the legislation.

From http://www.nationmultimedia.com/ 2003/09/06

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Haste in Issuing Land Deeds Causes Concern

The government's rush to issue land documents in some areas next week was likely an attempt to allow illegitimate ownership, academics said yesterday. Attajak Sattayanurak, a history lecturer at Chiang Mai University, said the current government's land distribution measures only addressed land tenure problems on a case-by-case basis. The government had yet to resolve the problem over land use as a whole and to address its root causes, he said. The Northern Farmers Network (NFN) and its academic allies organised a Bai Sri Soo Kwan ceremony yesterday for 109 landless farmers who had been released from jail after several people used their teaching positions to post bail. Some 500 farmers, scholars and sympathisers attended the merit-making ceremony held in Pa Sang district. The 109 farmers had been locked up on the charge of seizing idle land held by private investors. Thana Yasopha, an NFN member, praised the 109 farmers for their sacrifice and courage in the face of hardships in taking land reform into their own hands without waiting for the government. "Without them, the government might not have become interested in solving the plight of landless farmers," he said. Pairoj Ponphet, the secretary-general of the Union for Civil Liberty, said the government had failed to execute real land reform. Past policies only managed to convert several tracts of public land intended for poor farmers into private estates for investors, speculators and government officials. "The landless farmers, therefore, have the full right to initiate their own land reform and to check on land whose possession was unlawfully obtained," he said.

From http://www.nationmultimedia.com/ 2003/09/07

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Government Abolishes 47 Obsolete Laws

The government has abolished 47 ``obsolete and inefficient'' acts, to reflect changing society since the government took office two years ago. They include an act empowering law enforcement authorities to search for missing elephants, drafted in the early Rattanakosin period when the beasts were an important work force to Thais. Others to be abolished include a 1936 act to detain people who had ``inborn criminal characteristics'' and a 1913 law on getting rid of hyacinth. The government's move was approved by parliament after being forwarded by the Office of the Council of State. Deputy Prime Minister Visanu Krue-ngarm said the government would in future do away with more acts which were no longer worth enforcing. Such laws were currently being considered by the Office of the Council of State. ``There are currently about 600 acts being enforced in the country and many were found to be obsolete, inefficient and contradict the present situation of the country,'' said Mr Visanu, who chairs a committee to review the efficiency of acts. ``Making fewer laws is the best,'' he added. New laws to be enacted would serve the needs of the people and catch up with the present world, he said. ``They should be truly practical, efficient, easy to understand and enforceable. ``This is very necessary for the country during the second phase of the bureaucratic reform which will begin in October because the development of the Thai legal system should be conducted together with the bureaucratic reform.'' Meechai Ruchuphan, a law expert and former senate president, said most existing acts had been drafted by state officials without giving people a chance to voice their needs. Law drafters should pay more attention to public opinion. ``Most Thai acts have been drafted for the benefit of state officers who enforce them to oppress people,'' he said in calling for an end to that approach.

From http://search.bangkokpost.co.th/ 2003/09/21

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VIETNAM: Revising the Law on Credit Institutions

Revising the law on credit institutions led off discussions at the beginning on Monday of the National Assembly Standing Committee's 12th session. Revising the law's amendments on the institutions' organisation and operation is one of three legislative subjects to be reviewed by the committee in its scheduled nine-day session, presided over by NA Chairman Nguyen Van An. The other two are the sets of laws governing civil procedures, and the bankruptcy law. The meeting heard a Government report, delivered by Governor of the State Bank Le Duc Thuy, saying that five years of execution of the credit law had stabilised the national economy and helped sustain a high economic growth rate. However, much needs to be done to do away with loopholes in the establishment and operation of many credit institutions at various levels, Thuy said. He said the law has limitations and weaknesses which have become inappropriate to the new requirements of the country, in terms of raising resources for the cash-strapped national economy. Thuy said the changes would be indispensable to meet the rising demands for more investment resulting from the country's current process of economic restructuring. The second motive for the changes is to get rid of obstacles which have undermined the activities of credit institutions, he said. In the long run, Thuy said the changes would help form a legal framework that would facilitate the changing of State management over the State Bank in terms of its monetary and banking operations. The revision of the credit law would also help the Government carry out its overall administrative reform in the banking system, Thuy added. Thuy said the new law would abandon five articles in the existing law, while 33 articles would be subject to changes. The NA Economic and Budgetary Committee, which evaluates the Government's proposal, said the proposed changes were appropriate for the time being and that several more issues should be raised for the current discussions. They include the banking finance and accounting finance of various credit organisations. But an overall revision of the entire credit law must be done as quickly as possible to meet the country's present demands, the Economic and Budgetary Committee said. The NA Standing Committee is also scheduled to discuss some major issues relating to prolonged citizens' complaints and grievances; solving outstanding problems relating to policies governing land and housing reforms prior to July 1991; and a proposed law-making programme by the NA for next year. It will also hear reports on preparations for the construction of a new NA House and Ba Dinh Hall; the readjusting of the administrative boundaries of several provinces; adopting regulations governing external relation activities of the NA committees; and the Government's report on socio-economic and budgetary operations for 2003, and projections of budgetary spending and revenue collection for next year.

From http://vietnamnews.vnagency.com.vn/ 09/23/2003

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BANGLADAD: Price of Govt Lands to Be Reset

The government will soon reset the price of state-owned lands and assess its holdings under illegal occupation across the country. An inter-ministerial meeting took the decision on Saturday, with Finance and Planning Minister Saifur Rahman in the chair. The meeting discussed a proposal put forward by the Ministry of Housing and Public Works for revising government land prices and took the decision. Since the proposal dealt with the land owned by the Public Works Department (PWD) only, the meeting advised the ministry to rewrite the plan incorporating lands owned by other ministries and departments of the government. "First of all, we need a real assessment of how much of state-owned lands are illegally occupied," the Finance Minister told reporters after the meeting, noting that there is no such data so far in government's hand. The meeting directed the Railway, Roads and Highways, PWD, Land and other authorities concerned to conduct field surveys to detect illegally occupied government lands and assess their actual market rates. Ministers for Land, Law and Housing attended the meeting.

From http://nation.ittefaq.com/ 09/14/2003

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Anwar Stresses on Policy Framework on Agriculture

Agriculture Minister M K Anwar yesterday underlined the need for adopting a policy framework for the country's agriculture sector to cope with the higher subsidy in this field in the developed world. "We need to further develop our agriculture sector to ensure food security, alleviation of poverty and growth of agro-based industries in the country," he said while speaking at a seminar on "Bangladesh in a Globalised World: Choices and Future Challenges" here. Organised by Bangladesh Institute of Development Studies (BIDS) at its auditorium, the seminar was also addressed by Commerce Secretary Suhel Ahmed Chowdhury and BIDS Research Director M. Asaduzzaman. Director General of BIDS Quazi Shahabuddin was in the chair. Ashok Gulati, Division Director of Markets, Trade and Institutions of IFPRI, also spoke on the occasion. The researchers of BIDS submitted three separate papers in the seminar. M K Anwar said Bangladesh should devise its own policy to score progress in the agriculture sector as the recently concluded WTO ministerial meeting raised various questions regarding the future of world trade and development possibilities through globalisation in parts of Least Developed Countries (LDCs).Referring to subsidy in the agriculture sector, he said his ministry had asked the government to raise the agricultural subsidy to Taka 700 crore from the existing Taka 300 crore as the sector is playing an important role for the country's overall economic development. "According to WTO rules, Bangladesh can provide at least 10 per cent of product specific subsidy amounting to Taka about 19,000 crore for the agriculture sector at present day prices," he said. The agriculture minister, however, laid emphasis upon initiatives to increase bilateral trade as he said, "not only the multilateral trade, but regional and bilateral trading arrangements are becoming order of the day." From October next, Bangladesh is going to start talks with the neighbouring countries on bilateral trading arrangements with them," he informed at the seminar. M K Anwar said the agriculture sector was always kept outside the purview of the GATT negotiations until the Uruguay roundtable, which had a very long drawn out process of eight years mainly due to disagreement over the agriculture sector. "This was so because agriculture in all developed countries have been heavily protected either behind tariff walls or through heavy subsidy both in the input and the output markets," he observed. He said all the signatories to the GATT negotiations had agreed to cut down not only tariffs but also the agricultural subsidies according to rule based formula. "When there has been some progress in implementing the policy, subsidies gradually surfaced bypassing the rules. In the developed world in general, some trade distorting support has been re-categorised," he added. The agriculture Minister put special emphasis on increased trade and commerce between the developed and the developing countries side by side with special considerations for the LDCs to remove disparity between them. "In today's world, trade and commerce have become the integral part of development and it is well recognised that fair and free trade could generate benefits for the trading partners," he said.( BSS)

From http://www.bangladesh-web.com/ 09/22/2003

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BHUTAN: Agriculture Ministry to Use KR -II Accumulated Fund

The ministry of agriculture will use funds accumulated under the KR II grant scheme from Japan to support dzongkhag and geog agricultural programmes in the Ninth Plan say agriculture ministry officials. Lyonpo Sangay Ngedup hands over the cheque to Lyonpo Wangdi Norbu In total the ministry will use about Nu 370 million from the fund to build farm roads, protect forest resources and the environment, develop agriculture and livestock programmes and strengthen agriculture research facilities. Bhutan receives farm machinery and equipment under the KR - II scheme. The fund accumulated under the scheme comes from the farm machinery such as power tillers and threshers sold to farmers at a highly subsidised rate. KR-II is a grant of the Japanese economic cooperation programme which has contributed substantially in increasing food production in the country. The first grant was received in 1984. Till 2002, Bhutan has received a grant of 4.675 billion Japanese Yen. The grant supports agriculture mechanisation where machinery is sold to the farmers at a subsidised rate. Agriculture ministry officials said that the high demand for power tillers, threshers and reapers is expected to rise even further in the Ninth Plan. The power tiller in particular is very popular as it is used not only in land preparation but also in marketing and transporting of agricultural produce and farm materials. The ministry has drawn up two "Utilisation Plans" to use the fund that has been approved by the government of Japan and Bhutan. Nu 111.950 million has been approved under Utilisation Plan I and Nu II 257.113 million under Utilisation Plan II. On September 3, the agriculture minister, Lyonpo Sangay Ngedup handed over a cheque of Nu 164.070 million to the finance minister, Lyonpo Wangdi Norbu representing the first installment transfer to the finance ministry towards the approved programme.

From http://www.kuenselonline.com 09/05/2003

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New Credit Guarantee Scheme for Youths

Youths keen on starting small businesses can apply for loans of upto Nu 300,000 without any collateral under a new credit guarantee scheme signed today, September 15. The finance ministry, the trade ministry, the bank of Bhutan (BOB) and the Bhutan national bank (BNB) signed a memorandum of understanding (MOU) earlier today to create the new scheme. The Bank of Bhutan (BOB) and the Bhuan national bank (BNB) will give loans of Nu 200,000 to Nu 300,000 to youths who want to start small businesses. To qualify for loans, applicants will have to do a short business management course that will be conducted by the small business resource center (SBRC) under the trade ministry. "The SBRC will, with the support from various organizations, co-ordinate activities to assist school-leavers to start businesses as a means of self-employment," said the head of entrepreneurship promotion centre, Phub Dorji. Hair dressing, tailoring, photography, boiler-making are seen as possible businesses that could be taken up by school-leavers after completing the SBRC business management course. "This is designed to cover important aspects of managing a business in Bhutan," Phub Dorji said.

From http://www.kuenselonline.com/ 09/15/2003

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INDIA: New Revival Scheme for Textile Units

IN an attempt to revitalise the potentially viable textile units that are tending towards sickness, the Government on Tuesday announced a scheme that would permit banks and financial institutions to lend at 8-9 per cent per annum on their existing term loan exposure amounting to Rs 6,000 crore. The loan exposure of Rs 6,000 crore was contracted prior to 1999 by integrated textile units at interest rates ranging between 15 per cent and 17 per cent. The Secretary (Textiles), Mr S.B. Mohapatra, and the Secretary (Banking), Mr N.S. Sisodia, announced the salient features of the scheme at a press conference here. As per the scheme, which would be effective September 15, banks and financial institutions would be permitted to access external commercial borrowings (ECBs) and convert rupee term loans into foreign currency loans. ECB by banks/ FIs would be permitted for five years. The entire scheme would have a five-year tenure. All accumulated liquidated damages and penal interest would be waived. Mr Sisodia said that the accumulated interest liability would be frozen and converted into zero coupon bonds, payable after five years, in instalments, or at one time, as negotiated between the lender and the borrower. He also said that the eligibility of units would be determined on certain parameters, which include post-restructuring debt servicing coverage ratio of at least 1:1.33. Further, units should have positive earning before interest, depreciation, tax and amortisation (EBIDTA) in three out of last five years. The technical viability will be assessed by the designated technical agencies. Mr Sisodia made it clear that there would be no budgetary outgo for the Government on account of this scheme. He also clarified the policy makers in the Finance Ministry would factor in the current scheme while undertaking a review of the existing ECB policy. As regards the general guidelines of the scheme, Mr Sisodia said that a personal guarantee by the promoters, as in steel, would be a pre-condition for the restructuring. Once the restructuring is completed, the RBI will consider classifying such restructured accounts as standard assets. Further, wilful defaulters would not be eligible for the scheme. Mr Mohapatra said that healthy textile units that are paying dividends and are able to service their loans would be provided assistance under the technology upgradation fund scheme to become even more competitive. According to the Secretary (Textiles), about 350 integrated units may become eligible for availing of the benefits of the scheme. The Finance Ministry would monitor the implementation of the scheme. To induct technology in the decentralised powerloom sector, the TUF scheme has been enlarged for units wanting to take loans up to Rs 50 lakh. "The direct subsidy under the scheme for such units would be increased from 12 per cent to 20 per cent. The sources of credit has also been increased by inclusion of genuine NBFCs", Mr Mohapatra said. The Government has in all committed Rs 260 crore to the decentralised powerloom industry. A new group insurance scheme for the powerloom sector has also been started.

From http://www.thehindubusinessline.com/ 09/10/2003

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Lack of 'Flexibility' Led to Collapse of WTO Talks

India today said lack of "sufficient flexibility" and a desire for compromise from the developed countries led to the collapse of the just-concluded WTO round in Cancun. "Lack of flexibility and desire for compromise from developed countries who have insisted on pressing their agenda on agriculture and Singapore issues", led to the failure of the negotiations, Foreign Secretary Kanwal Sibal told reporters. Sibal said, however, India had succeeded in building a coalition of developing countries. Such a coalition has endured, he said.

From http://www.outlookindia.com/ 09/15/2003

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India to Continue to Engage Positively at WTO

Describing the Cancun meet as a historic turn in WTO, Commerce and Industry Minister Arun Jaitley today categorically said India will not blame anyone for the collapse of the meeting but will continue to engage in the future negotiations positively. "Now the blame game is on. India is not going to take part in it. We will continue to engage positively till the end. We will have to pick up the threads from where they have been left at Cancun and take the process ahead at WTO," Jaitley said after his felicitation at the BJP headquarters. Pointing out that the equilibrium at WTO had changed, he said for the first time in its history there were equitable negotiations with developing countries led by India, Brazil and China being able to make themselves heard forcefully ."This was a change which was visible in this meeting (Cancun). The combined voice of developing nations was being heard at par with rich nations like Us and EU," he said. Taking a dig at EU Trade Commissioner Pascal Lamy who called WTO a medieval organisation after Cancun collapse, he said it was only in ancient institutions that unilateral decisions were made and the multilateral organisation had become truly democratic now by listening even to developing countries' concerns. "This change would have to be accepted by the western world who always thought they could divide the developing nations' alliances by putting pressure," he said. Jaitley said WTO can move forward only by consensus and this had become very clear at Cancun when the alliances formed by developing nations, G-21 on agriculture and G-16 on Singapore issues of trade and investment, competition polices, trade facilitation and transparency in Government procurement, stayed together till the end. "Every time we were at the receiving end but this time we were on the offensive," Jaitley said, adding that the countries were almost close to an agreement when some of the African countries walked out leading to collapse of Cancun. He said the intense consultations with political parties, trade unions, non-governmental organisations, think tanks, industry and trade advisory bodies, held ahead of Cancun meet, made it clear that everyone was in favour of protecting national interests. Stating that while India had got isolated at Doha, he said at Cancun majority of WTO members were supportive of India's stand and stood by it. Earlier, felicitating Jaitley, BJP president Venkaiah Naidu said he had made India proud by leading the developing countries against the pro-developed agenda at WTO. Praising Jaitley's role, Naidu said he had carried forward what Murasoli Maran had started at Doha and made India's voice heard at WTO loud and clear by taking the initiative and forming alliances.

From http://www.outlookindia.com/ 09/19/2003

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PM Suggests Four-point Strategy to Combat Terrorism

Maintaining that the global war against terrorism which commenced after the 9/11 terror strikes were far from over, Prime Minister Atal Bihari Vajpayee today suggested a four-point, long-term strategy to combat the menace and warned against weapons of mass destruction falling into terrorists' hands. To win war against terror, he said "we have to win the war of ideas. We have to expand the constituency of democracy by promoting the ideals of freedom, democracy, rule of law and tolerance, which are our defining strength." Addressing the prestigious Asia Society here ahead of his speech at the United Nations General Assembly, Vajpayee said there should be consistency of approach in demanding from all countries the same high standards in combating terrorism and democracies should act in cohesion, with a threat against one being seen as a threat against all. Demanding continuity of resolve and clarity of purpose, the Prime Minister said "we should not be drawn into the grey zone of conflicting policy objectives, which condone ambiguous positions on terrorism." Observing that the post cold war era has seen a significant proliferation of weapons of mass destruction and their delivery systems, he said the threat of their falling into terrorists' hands looms large. "The existing regimes for non-proliferation rigorously audit the performance of responsible states, but do not touch the proliferators. An honest re-appraisal is required," he said. The Prime Minister said the end of the Cold War had kindled hopes of an enduring era of security and stability. "This has not happened. Instead, new political problems and security challenges have been thrust upon us." Many newly independent countries still suffer from weak political institutions, economic stagnation and a deficit of democracy and modernity. This threatens the security of their people and that of their neighbours." There may be differences on issues and disagreements on approaches, but conflicts and confrontations do not overshadow the relations among the great and emerging powers, he said. He said the structure of international political, security and economic institutions, established nearly 60 years ago, needed to be reviewed from the perspective of present day realities and future needs. "Our international trade negotiations should place the development agenda at the centre of attention. We should not let status quo tendencies sabotage the long-term gains of genuine change. Pointing out that Iraq and Afghanistan were two immediate test cases of the international efforts to build a world order based on cooperation and partnership, Vajpayee said, in both cases the way the world addresses these challenges would have far-reaching implications for the common future. "In Iraq we have to develop an international consensus, which accelerates the political, economic and security transformation in that country." In Afghanistan, we need to complete the work commenced by the Bonn process, and help its government to completely wipe out the remnants of Taliban, to establish full control over the entire country and to progress as scheduled towards national elections. The future of Iraq and Afghanistan is vital for their citizens but will equally have far-reaching implications for the region and for the world," he said.

From http://www.outlookindia.com/ 09/23/2003

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SRILANKA: Land Registration to Be Simplified

The Government has decided to simplify the land registration process in the country by introducing less complicated and comprehensive modes of title registration. Lands Minister Rajitha Senaratne said that the decision was taken to minimise land disputes and derive maximum benefits from the land available. He was addressing the Third Commonwealth Workshop on 'Land and Development'. The existing mode of land ownership registration is through a deeds registration system introduced by the British in 1860. Though the Government at that time allowed the system only as a temporary measure it is still in place today and is entrenched in the Sri Lankan law. The Minister said they hoped to change this system into a much easier and simpler form by amending the Registration of Titles Act enacted in 1998. Accordingly, a project has already been initiated to develop methodologies to convert land registration to title registration. "A more efficient system with fewer disputes will save the time spent on transacting or dealing with disputes. These benefits will encourage people to maximise the use of land and increase their productivity," Senaratne added. The workshop, attended by experts from commonwealth countries like Bangladesh, Brunei, India, Malaysia and Maldives was inaugurated in Colombo yesterday. (By Rajmi Manatunga)

From http://www.dailynews.lk/ 09/03/2003

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MALDIVES: President's Office Asks Government Authorities to Ensure Safety of Children and Adults from Fatal and Injurious Accidents

Noting the recent spate of accidents resulting in deaths and grievous injuries to a considerable number of children and adults, the President's Office has asked all government authorities to take extra safety measures to ensure that such accidents are prevented in future. In a circular sent to all government authorities, the President's Office asked the authorities to take all measures possible, be it a sports function or student trips, to ensure the safety of all people concerned. When organizing such events, availability of first aid and doctors on short notice, should be pre-arranged, the President's Office said in a press release on Monday. President Maumoon Abdul Gayoom had earlier on Aug 18, when inaugurating the new King Fahd building of the Institute of Islamic Studies, called on all government authorities to give special attention to ensure that there is no repetition of such fateful and injurious accidents. He had called for the safety of all individuals who fall under the direct care of any government authority.

From http://www.haveeru.com.mv/ 09/01/2003

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Cabinet Discusses National Policy on Gender Equality and the creation of a National Fund for Training and Skills Development

The Cabinet on Wednesday discussed the national policy on gender equality and the creation of a national fund for training and skills development. The discussion on national gender equality policy was based on a paper on the subject presented by the Ministry of Women's Affairs and Social Security. The policy paper was based on Islamic values, the principles generally found in similar policies in other countries and on the objective of realising the Maldives Vision 2020. In formulating the paper, the Ministry had canvassed widely and had consulted persons who were gender sensitive and active in promoting women's development, as well as those who were supporting activities for women's development in a variety of fields. After deliberating on the policy document, the Cabinet decided to refer the matter to the Cabinet Committee on Social Affairs. The discussion on the creation of a national fund for training and skills development was based on a paper submitted by the Ministry of Human Resources, Employment and Labour. With the objectives of developing the skills required for the job market, expanding the pool of trained people, and increasing the productivity of workers throughout the country, the proposed fund would facilitate the participation of nationals in training programmes conducted in the country and abroad, and give loan assistance for the establishment and development of training centres in the country. In formulating the paper, Ministry of Human Resources, Employment and Labour had consulted the Advisory Committee on Public Service Reform, the Ministry of Education, and the Maldives College of Higher Education. After discussing on the paper, the Cabinet decided that the proposal should be further examined by a Ministerial Committee.

From http://www.haveeru.com.mv/english/ 09/11/2003

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NEPAL: Government Extends Prohibitory Orders

The government has extended the previous prohibitory orders till September 26, 2003 which will effect the areas in three districts of Kathmandu, Lalitpur and Bhaktpur. Press statements issued by three district administration offices separately announced it today. According to the prohibitory orders the protest rallies, and congregation of more than five people at a place except for religious rituals are banned. This has come in the wake of increasing Maoist violence in the country. Earlier, the government had extended the prohibitory orders till September 23, 2003.

From http://www.kantipuronline.com/ 9/22/2003

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PAKISTAN: Govt Proposed Two-Phase Formula on LFO Issue

LAHORE: In the last round of talks, the government proposed two-phase talks for the resolution of differences on constitutional issues with the Muttahida Majlis-e-Amal (MMA), Daily Times learnt on Sunday. In the first phase, the disputed articles of the Legal Framework Order (LFO), except Article 41 (7) which pertains to the president's election, would be presented in parliament as a constitutional amendment bill. The issue of the president's military uniform would be negotiated in the second phase. Sources said National Security Council (NSC) Secretary Tariq Aziz had brought the proposal to MMA's two-member team on August 27 at a meeting in Lahore. "If the MMA accepts the formula, the government would accept their proposals on the NSC, Article 58 (2) b and the articles relating to the local governments and the president's power to dissolve the provincial assemblies. The government would also accept their proposals on articles pertaining to the appointment of provincial governors and generals of the armed forces," sources said. In return, they said the government had asked the MMA not to oppose the extension in judges' retirement age. The sources said the constitutional amendments package would be finalised after the president's approval. They said the MMA leadership was not satisfied and demanded a written agreement on Article 41 (7) and the president's uniform. They added that although the MMA leadership been flexible, it had certain reservations. "These matters will be discussed at the MMA Supreme Council meeting." Meanwhile, MMA deputy secretary general Liaqat Baloch told Daily Times that both sides had discussed all the disputed articles of the LFO in the talks. "If we reach an agreement, there are chances it might be presented in parliament in the form of a constitutional package". He refused to divulge details of the meeting. Sources said the next round of talks was expected on Tuesday (September 2). (by Amir Rana)

From http://www.dailytimes.com.pk/ 09/01/2003

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Musharraf Says He Has No Intention of Freezing Nuclear Program

President General Pervez Musharraf on Wednesday said Pakistan's nuclear programme would not be frozen or rolled back. "Such talk is irrelevant, outdated and baseless," the president said while chairing a meeting of the National Command Authority (NCA). Prime Minister Zafrullah Jamali also attended the meeting. The president said Pakistan believed in peaceful co-existence and reiterated its stance that it would not enter into an arms race with anyone. However, he said consolidation of Pakistan's minimum deterrence needs would be ensured. "Ensuring qualitative upgrades in the country's nuclear programme will fortify national security," he said. Foreign Minister Khurshid Mehmood Kasuri, services chiefs and other senior civil and military officers were also present. Mr Musharraf said Pakistan's nuclear programme had matured over the years and it would continue to be on the top of priorities. He condemned the "inspired and malicious" campaign in the international media regarding Pakistan's alleged nuclear assistance to Iran. "Pakistan believes in non-proliferation and it is committed to international universal non-proliferation goals," he said, adding Iran had also dismissed these reports saying there was no nuclear nexus between the two countries. The NCA meeting reviewed the progress of Pakistan's strategic programmes and expressed complete satisfaction with the operational readiness of strategic forces and pace of development work. The meeting approved a number of recommendations put forward by the NCA Secretariat and the Strategic Plans Division.

From http://www.dailytimes.com.pk 09/04/2003

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Islamabad Signs Concession Draft for WTO Meeting

Pakistan would on Wednesday seek the member countries' support on some basic WTO rules and would launch a campaign for maximising its exports of more than 80 agricultural and related products under the WTO regime at the Cancun ministerial meeting. An official source told Business Recorder that the Pakistani delegation is going to the Cancun ministerial meeting with an agenda to promote exports of agricultural products and seek market access to non-agricultural products. The ministerial meeting on the WTO will be started from Wednesday in Cancun (Mexico).The official said the agenda items for which Pakistan would try getting the member countries' support include: suitable amendments in dispute resolution understanding (DRU), WTO rules, trade and environment rules (TER), TRIPS, special and differential treatment (SDT), rules implementation concerns expression, Singapore issues, maximum facilities for agricultural and related products' export, and access to non-agricultural products market. The official maintained that Pakistan is set to launch campaign for maximising exports of agricultural and related products, like: live animals, meat and edible meat, fish and crustaceans, mollusks and other aquatic invertebrates, dairy produce, birds, eggs, honey, edible product of animal origin, live trees and other plants, bulb, roots and the like, cut flowers and ornamental foliage, edible vegetables and certain roots and tubers, edible fruit and nuts, peel of citrus fruit of melons, coffee, tea, mate and spices, cereals, products of the milling industry, malt, starches, insulin, with gluten, oil seeds and oleaginous fruits, fruits, miscellaneous grains, seeds and fruit, industrial or medicinal plants, straw and fodder, gums, resins and other vegetable saps and extracts, vegetable plaiting materials, vegetable products, molasses or other aquatic invertebrates, sugars and sugar confection, cocoa and cocoa preparation, preparation of cereals, flour, starch or milk, pastry cooks products, preparations of vegetables, fruit, nuts or other parts of plants, miscellaneous edible preparations, beverages, spirits and vinegar, residues and waste from the food industries, prepared animal fodder; tobacco and manufactured tobacco substitutes. In issues relating to the textile sector export, Pakistan would be campaigning for market opening through supportive rules and conducive consequent treatment for items that have been promoted in export manufacture through US$ 2.5 to 3 billion BMR carried out over the past couple of years, he said. The official pointed out that once the Cancun meeting takes up its maximum agenda of creating a consensus on parameters and modalities for implementation of WTO regime, Pakistan, like many other countries enjoying quota-based export facilities, would be deprived of all favours available under the Exceptional Flexibility Regime under which bilateral agreements can determine the export quotas by end-2004.

From http://www.brecorder.com/ 09/10/2003

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Government to Maintain Consistency in Its Policies

LAHORE, Pakistan - Federal Finance Minister Shaukat Aziz declared on Tuesday that consistency and continuity would remain the hallmark of Government policies to ensure the flow of investment and economic prosperity of the country. Addressing members of Lahore Chamber of Commerce and Industry this afternoon, the Minister gave the example of Malaysia and other Far Eastern countries where the continuity of Government policies brought economic success and paid rich dividends. He pointed out that Malaysia under Prime Minister Mahatir Muhammad had maintained its one direction for the last twenty years which brought tremendous economic boom for the country. Taking cue from Malaysia and other Far Eastern countries, he said President Pervez Musharraf and Prime Minister Mir Zafarullah Khan Jamali have decided to maintain continuity of policies for the economic benefit of the country. Aziz spoke eloquently about the economic progress achieved by the country during the last three years and said good results had been obtained. He noted that in the last financial year, the GDP stood at 5.1% while during the current year the target has been set at 5.3% . The Finance Minister said the agriculture which form 25% of the GDP has so far performed satisfactorily with crops like cotton, sugarcane and rice yielding good results. Stressing the role of private sector in the economic development of the country, he said it would be the 'main engine of growth.' He said the rational policies of the Government has led to the increase of foreign exchange reserves, now touching a mark of US $ 11 billion, balance of payment has stabilised while the rates of interest lowered. Pointing out that national economy was driving towards a new phase, the Finance Minister said Pakistan from next year would no longer be under the dictates of IMF. Under the new economic management schemes, he said the Government has launched US $ 500 million bond which has attracted the attention of leading world banks. He said these bonds are being floated to pay off big loans and already the burden of such loans has been reduced to US $ 35 billion from US $ 38 billion due to sound policies of the Government. Setting aside apprehensions about lack of investment in the country, Shaukat Aziz said the total amount of money invested in textile sector alone stood at US $ 4 billion. "Pakistan remain the second highest buyer of new textile machinery after China," he added. The Government, he said, was now concentrating on the construction activities to increase jobs opportunities and in this regard, he mentioned the recent decision of the Punjab Government to offer easy loans to its Government employees to help them construct their own houses.

From http://www.paknews.com/ 09/17/2003

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AFGHANISTAN: Afghan Leader Signs New Banking Law

Afghan Transitional Administration Chairman Hamid Karzai on 16 September signed a new banking code into law, Radio Free Afghanistan reported on 17 September. According to the new provisions, Afghanistan's central bank (Da Afghanistan Bank) will be separated from commercial banks and become an independent entity. In addition, the establishment of private commercial banks, both Afghan and foreign, will be allowed. Under the previous Afghan banking system, Da Afghanistan Bank was part of the Finance Ministry and all commercial banks were state-run. AT

From http://www.rferl.org/newsline/ 09/17/2003

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IRAQ: Donors Support Plan for Trust Fund

BRUSSELS, Belgium (AP) -- The United States and other donors pushed ahead Wednesday with plans to channel billions of dollars in reconstruction aid to Iraq through an international fund independent of the U.S.-led administration in Baghdad, officials said Wednesday. Donors said they were determined to get reconstruction projects up and running despite the security concerns stoked by last month's deadly bombing of the U.N. headquarters in Baghdad and other strikes on foreign targets. The new fund will be ``separate but coordinated'' with the work of the U.S.-led Coalition Provisional Authority, which is using Iraq oil revenues to pay for reconstruction, said Chris Patten, the European Union's external affairs commissioner. The creation of the fund, which is expected to be managed by the World Bank and the United Nations, should make it easier to raise contributions from, among others, France and Germany, which opposed the U.S.-led war to topple Saddam Hussein and were wary of bankrolling occupation authorities. ``We are prepared to help ... provided there is an adequate multilateral umbrella for our contribution,'' Patten told the EU's parliament in Strasbourg, France. The United States is seeking international contributions -- even at the cost of ceding some control over Iraq's rebuilding -- as the cost of its military mission approaches $3.9 billion a month and as sabotage stalls efforts to get Iraq's oil exports flowing. Washington also is seeking support for a new U.N. resolution giving the world body more authority in Iraq while clearing the way for military assistance from nations reluctant to participate in the current U.S.-led operation. During talks at EU headquarters, experts from a ``core group'' of donors -- including the United States, EU, Japan and World Bank -- discussed Iraq's needs and the trust fund plan. Those discussions will continue Friday in New York with a broader group of potential donors. A final decision on creating the fund is expected at an Oct. 23-24 conference in Madrid, Spain, where more than 50 nations and international organizations are expected to make cash pledges. No new figures were released at Wednesday's meeting, but officials believe tens of billions of dollars will be needed through 2004. L. Paul Bremer, the U.S. civilian administrator in Iraq, has estimated that rebuilding costs could reach $100 billion, including $16 billion for upgrading the water system and $13 billion for repairing the electrical grid. European nations want to see greater involvement in the reconstruction plans by the fledgling Iraqi authorities, believing that could help stabilize the country and reduce attacks on foreign targets. ``The sooner we can transfer real authority to Iraqis in government to manage their own affairs the better,'' Patten said. The donors meeting at EU headquarters stressed that adequate security was necessary to rebuild Iraq's economic infrastructure and allow for the transition to a democratic Iraqi government. But Patten stressed that the EU agreed with the United States that violence should not delay aid.

From http://www.iraqfoundation.org/ 09/03/2003

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IRAN: Iran Announces Antiterrorism Legislation

Iranian government spokesman Abdullah Ramezanzadeh announced on 8 September that legislation on eliminating financing of terrorist groups will be submitted to the parliament this week, AP reported. He said officials from the Central Bank of Iran, the Ministry of Foreign Affairs, and the Ministry of Economic Affairs and Finance spent a year drafting the bill, and if the legislature and Guardians Council approve it Iran will become a member of the 1999 International Convention for the Suppression of the Financing of Terrorism (see http://www.un.org/law/cod/finterr.htm and http://untreaty.un.org/English/Terrorism/Conv12.pdf). "The bill seeks to block any financing of groups Iran recognizes as terrorists," Ramezanzadeh said. He added that the Al-Qaeda network is on that list of terrorists but Hamas is not. There is little international agreement on which groups are terrorist organizations, and furthermore, the United Nations Office on Drugs and Crimes notes that "the lack of agreement on a definition of terrorism has been a major obstacle to meaningful international countermeasures" (http://www.unodc.org/unodc/terrorism_definitions.html). BS

From http://www.rferl.org/ 09/09/2003

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KAZAKHSTAN: UEA Concept Approved by the Government

The government of Kazakhstan has approved the draft agreements and the draft concept of the establishment of Unitary Economic Area between Russia, Ukraine, Belarus and Kazakhstan, KZ-today correspondent reports from Astana. This decision has been made today, on 9 September at a session of Kazakhstan government. According to Bolat Smagulov, vice minister of industry and trade, it is suggested that in Yalta in mid-September 2003 these documents will be signed by the heads of four states. It is planned that the draft statement by the presidents after signing of the documents will prolong the mandate of High Level Group (HLG) and provide it with a number of authorities. In particular, the HLG will receive authorities for a co-ordination of the work on the analysis of economic policy of the HLG member states, a provision of mutual advise on changes in the national legislation between the states, an establishment of appropriate working groups for the preparation of sector agreements that are planned to be adopted within the UEA.

From http://www.gazeta.kz/ 09/09/2003

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UZBEKISTAN: Law on Private Entrepreneurship Published in Press

Law "On private entrepreneurship" was published in the Uzbek national daily Narodnoye Slovo on 16 September for public consideration. The law was passed in August session of parliament. The law is aimed at regulating relations on creation, re-organisation and liquidation of private enterprises and their activity. The document also regulates relations between the employer and employees, and social protection of the latter. The law states that private enterprises cannot be nationalised, except for cases envisaged in the legislation. They also cannot be subject to requisition, except for cases of natural disasters like epidemics, accidents, etc., when the owner of a private enterprise is paid compensation. According to the document, controlling bodies have the right to check private enterprises once in three years.

From http://www.uzreport.com/ 09/17/2003

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Law On Anti-Dumping, Compensational Duties Published

The Law "On protective measures, anti-dumping and compensational duties", passed in the first reading at the last parliamentary session, has come into force. The law is aimed at regulation of relations in use of protection measures, anti-dumping and compensational duties to prevent serous damage or threat of damage to the economy. The documents gives the government the right to take measures on elimination of damage or threat to Uzbek economy due to increased imports of goods or services. The measures include import quotas, special duties and others to limit imports for the maximum term of four years, with possible prolongation by authorised body. The law also grants the government the right to establish anti-dumping duties to goods imported at dumping prices, to protect the economy of Uzbekistan. According to the document, the anti-dumping duties against goods can be used for the maximum period of five years, with possible prolongation after a special investigation. The compensational duties can be used against imported subsidised goods. The subsidised goods are goods produced, exported or transported due to funding of foreign company. The authorised body can set compensational duty for the term of five years, with possible prolongation. The law also establishes the order of organisation of investigations by authorised bodies to use any of about mentioned measures.

From http://www.uzreport.com/ 09/19/2003

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Australia is obliged to amend discriminatory legislation against same-sex couples following a landmark United Nations decision that is expected to have global ramifications. The UN human rights committee said Australia breached its international obligations by denying the gay partner of a deceased war veteran a pension and bereavement payment. Sydney man Edward Young took his case to the UN in 1999 after he was denied entitlements following the death of his partner of 38 years, World War II veteran Larry Cains. The Veterans' Entitlement Act limits the definition of "couple" to married and heterosexual de facto partners. The UN committee found the Government had breached the International Covenant on Civil and Political Rights, which guarantees equality before the law. It said the Government, a signatory to the covenant, was obliged to amend the law and ensure similar violations did not occur in other legislation. Australian National University law academic Wayne Morgan said the decision had ramifications for superannuation, taxation, social security and defence force laws. It would also apply to other signatory countries. "Globally it is the most significant statement that a UN body has ever made about the equality rights of same-sex couples," he said. Mr Morgan acknowledged the committee could not enforce the decision, but said if Australia ignored the ruling it would add to "Australia's ever-worsening human rights reputation". The Government has 90 days to respond. A spokeswoman for Attorney-General Daryl Williams said the Government took its human rights obligations seriously - both domestically and internationally. She said Mr Young's case was considered under Australian law and rejected by the Australian Repatriation Commission, the Veterans Review Board and the Human Rights and Equal Opportunity Commission. "The Government notes the committee is not a court and its views are not binding," she said. Australian Democrats justice spokesman Brian Greig said he would reintroduce the party's 1995 anti-discrimination bill following the ruling. Mr Young took his case to the UN as a matter of principle, justice and equality before the law. "The Government was refusing to honour Larry's war service and was refusing to treat him the same as heterosexual veterans," Mr Young said. "The Government seems to think it is okay for gay men and lesbians to fight and die for their country, but still wants to treat us like second-class citizens when it comes to recognising our relationships."

From http://www.theage.com.au/ 09/05/2003

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WATER bans will soon be in force in every mainland state after the NSW Government announced mandatory restrictions yesterday, the first time in nine years it has done so. With dam levels in the Sydney catchment area 14 per cent lower than at this time last year, the restrictions have been introduced early amid fears of a water crisis. "We're acting now before average temperatures start climbing, before water use starts rocketing, before the dams get any lower," NSW Premier Bob Carr said. Dams in the Sydney region are at 60.5 per cent capacity, but mandatory restrictions are generally invoked only when water levels fall to 55 per cent. "We've got to start valuing this resource in urban Australia a whole lot more than we have in the past," Mr Carr said. "Years from now you might all recall this announcement as the first time global warming affected our way of life." The restrictions are to begin on October 1 and will affect 4.2 million residents in Sydney, the Blue Mountains and the Illawarra. Hand-held hoses can be used for gardens but not for cars and concrete; sprinklers and watering systems can't be used at all. The bans will remain in place until dam levels rise to 70 per cent. From November 1 those ignoring the bans face a $220 fine. The new laws follow similar restrictions in nearly every other state. The ACT will almost certainly move to stage 3 water restrictions on October 1, with a formal decision to be made by the ACT Water and Energy Corporation next week. Despite recent rainfall, water capacity remains at below 50 per cent. Victoria's water stocks have also plunged after seven consecutive years of low rainfall. Victorian households have had stage 2 restrictions since August, under which watering private lawns is banned and cars and buildings can only be washed using a bucket or watering can. Bans also extend to most sports grounds and on filling swimming pools. While Brisbane's water storage is considered "acceptable", restrictions are in force on the Gold Coast, where the city's main storage facility, the Hinze Dam, is down to 47.8 per cent. Sprinklers are prohibited and hoses can be used to water gardens but not cars and boats. Residents in South Australia are also allowed to water by hand, but under present laws sprinklers can only be used between 8pm and 8am. Water cannot be used to clean a vehicle except with a bucket or a trigger hose for rinsing. Only in an emergency can roofs or paved areas be hosed and a permit must be sought to fill pools. In Western Australia, a two-day-a-week household sprinkler restriction has been imposed on Perth residents since 2001. On the two days allowed, they can only be turned on before 9am and after 6pm. With dams at virtually their lowest levels, it is unlikely any water restriction will be lifted for summer. Only Tasmania and the Northern Territory are free from household water bans. In Hobart, the second driest capital city, residents are charged a flat rate, with the Hobart City Council this week voting against a user-pays system. (by Drew Warne-Smith)

From http://www.theaustralian.news.com.au/ 09/12/2003

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The federal Government is investigating a plan for insurers to fund a safety net for policy holders in the event of another HIH-style disaster. Treasurer Peter Costello announced the study as part of the Government's final response to recommendations from the HIH royal commission released five months ago. The response included handing many of the 61 recommendations over to industry regulators and state and territory governments. The Insurance Council of Australia said it was disappointed that some of the key recommendations had not been automatically introduced to protect customers. ICA executive director Alan Mason said they included making the Australian Prudential Regulation Authority the sole regulator of insurance products, replacing several state and federal bodies - a recommendation referred to the states for consideration. Royal commissioner Neville Owen blamed mismanagement and incompetence for the $5.3 billion HIH disaster, making extensive recommendations for avoiding another collapse and identifying 56 possible breaches of the law by directors and executives of HIH and FAI. Mr Costello said yesterday those breaches had already been passed to prosecutors and the corporate watchdog, and APRA had been overhauled. He announced studies into two recommendations - the safety net scheme, and bringing insurance-like products under APRA's watch. In his report, Justice Owen said Australian law did not cover some insurance schemes because they were underwritten by foreign insurers or operated on a discretionary basis, such as mutual societies. Last year's collapse of the biggest medical indemnity insurer, UMP, was evidence of the dangers of discretionary cover, Justice Owen said. Mr Costello said former treasury executive Gary Potts would study the extent and nature of cover that foreign insurers and mutual societies provided. Professor of Finance at the University of Melbourne, Kevin Davis, would conduct the second study, examining the design and regulation of a safety net scheme. Justice Owen recommended a levy on the industry to fund such a scheme to protect individuals and small businesses from collapses in the future. A not-for-profit company would operate the scheme, which was common in other countries, he said. The Government gave emergency assistance after the HIH collapse in March 2001, paying out almost $245 million in two years to policy holders. The HIH Claims Support Scheme will cease taking applications from victims in February next year. Mr Mason said the AIC would make submissions for both studies. (by Trudy Harris)

From http://www.theaustralian.news.com.au/ 09/13/2003

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QUEENSLAND pool owners will be issued with on the spot fines of more than $500 if they fail to obey new fencing laws to come into effect next month. Queensland Local Government and Planning Minister Nita Cunningham said the laws would also require warning signs to be erected when pools were being built and for finished pools to have signs installed detailing procedures for cardiopulmonary resuscitation. Mrs Cunningham said the laws were aimed at strengthening Queensland's existing legislation on pool fences. Since 1991 all domestic pools in Queensland have been required to meet a prescribed standard with an amendment in February this year requiring fences around new pools to be inspected and certified before they were filled. A maximum penalty of $12,375 was introduced for failing to get certification. Mrs Cunningham said the move to give local councils the power to impose on-the-spot fines was an attempt to give them the impetus to initiate random pool inspections. "It is also designed to really raise the awareness of those who own swimming pools that having a pool is not just a right," Mrs Cunningham said. She said the most common cause of traumatic death for children under five in Queensland was drowning in domestic swimming pools, despite a 60-per-cent drop since pool fences were made law in 1991. "With almost 70 per cent of the deaths due to a defective latch, door or fence, all it takes is a little time and effort," Mrs Cunningham said. "New on the spot fines of up to $525 will apply in Queensland from November 1 where owners have not built or maintained a pool fence," she said.

From http://www.theaustralian.news.com.au/ 09/15/2003

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The Federal Government has backed down on a plan to cut a fortnightly students' pension for disabled people and sole parents after a revolt by backbenchers. Family and Community Services Minister Amanda Vanstone confirmed the Government had scrapped its plans to restrict the $62.40 fortnightly supplement to periods of study. The plan would have left these students without benefits during the summer break. Scrapping the supplement, which helps recipients with their study costs, would have saved the Government more than $39 million over four years. Nine backbenchers spoke out against the budget measure in the Liberal party room meeting yesterday, prompting Prime Minister John Howard to step in. The Government MPs were concerned that the cut would be a disincentive to study for the estimated 32,000 students who receive the supplement. Senator Vanstone yesterday rejected Opposition claims during question time that she had been forced into a humiliating backdown. "We had a meeting with a number of backbenchers who expressed some concerns about this, and we listened to those concerns and changed our mind," she said. "That is how government ought to run." Western Australia Liberal MP Don Randall was one of those who spoke out against what he said was "not good government policy". "I was happy to support the fact that those most likely to suffer the negative conse-quences of that part of the bill were the ones that could least afford it," Mr Randall said. "I think it was a sensible approach that the Government took to listen to members of the Government's party room and decide that they won't change the legislation." According to Senate estimates figures, full-time university students would have lost $374.40 a year under the changes, while those studying full time at TAFE or secondary school would have lost just under $250. Nearly 20,000 students receiving single parent payments and 12,560 disability support pensioners would have been affected. Opposition family and community services spokesman Wayne Swan congratulated the nine backbenchers who he said had supported struggling Australians striving to get an education. "(It was) a really mean and heartless cut that was going to set back these people who were struggling to stand on their own two feet, struggling to study and to move ahead, struggling to move from welfare to work," Mr Swan said. Australasian Network of Students with Disabilities, who mounted a letter campaign against the changes, also welcomed the decision. Network convenor Timothy Hart said: "People do need the supplement during the summer for the simple reason that they need to make education expenditures that don't just happen during term time." This material is subject to copyright and any unauthorised use, copying or mirroring is prohibited. (by Orietta Guerrera)

From http://www.theage.com.au/ 09/17/2003

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Mark Latham is seeking to emulate former prime minister Paul Keating with his new pro-market economic reform agenda, which calls for a "second generation of productivity and growth".Seeking to put his stamp on the future direction of Labor policy, the Treasury spokesman has ditched core elements of the party's economic manifesto - a move that has incensed sections of the Left. Declaring that the market economy was here to stay, Mr Latham argued Labor would strive for full "employability" through a "pro-competition, pro-productivity, pro-growth economic model"."We believe in an economy with the rigour of private-sector competition and the demands of corporate social responsibility," he writes in the draft ALP policy platform. Titled "A Strong Economy for a Fair Society", the Latham chapter is certain to generate robust debate in the lead-up to the party's national conference in Sydney next January. It stresses the need to beef up the Trade Practices Act to protect small business and consumers, while calling for a renewed commitment to boosting workforce productivity. "Australia now needs a second generation of productivity and growth", which would be achieved through greater spending on research and development, and developing a "serious agenda for lifelong learning". Mr Latham told The Australian the substantial redrafting was aimed at giving "strong emphasis to my key policy themes". These included market competition, corporate social responsibility, independent monetary policy and the smoothing out of housing's boom-and-bust cycles. He warned those on the party's Left against pursuing special-interest industry policies. "Picking companies, picking winners, playing favourites - it's a mug's game," Mr Latham said. But he rejected claims the draft policy represented a fundamental shift away from the party's policies of the 1980s and 1990s. "I don't see it as shift away from the Keating-ite approach to opening up markets," he said. One senior left-wing union official, Doug Cameron, is already warning that Mr Latham's attempts to rewrite economic policy will fuel a voter backlash. "I don't believe that adopting a conservative economic policy that is indistinguishable from the Liberals' dogma is a recipe for electoral success for Labor," said Mr Cameron, national secretary of the Australian Manufacturing Workers Union. But Mr Latham rejects this, claiming he wants to place a greater emphasis on education, training and R&D, which he describes as the "new form of security". "No one is going to have a job for life," he told The Australian. The political hardman, who is being groomed by some senior Right figures as a future Labor leader, insists he will not shy away from a robust policy debate on the ALP's economic direction. The debate over economic policy will come at Labor's national conference, to be held in Sydney in late January. Mr Cameron also is expected to spearhead a push for Labor to support a "fair trade" policy -- in a repeat of the robust debate on trade at the last national conference, in July 2000. The draft trade policy makes no mention of fair trade but instead reinforces the Opposition's support for free trade policies. (by Steve Lewis)

From http://www.theaustralian.news.com.au/ 09/26/2003

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THE FIJI Human Rights Commission believes the publication of the names of suspects sought in connection with recent armed robberies is a breach of Human Rights Laws. Commission Director Dr Shaista Shameem was commenting on last weeks publication of y police of the 'Ten Most Wanted' men in the country, home believed to be involved in series of armed robberies. Dr Shameem says section 29 of the constitution states that every person charged with an offence has the right to a fair trial before a court of law. "Section 29 is likely to be breached if the publication of the names will jeopardize their right to a fair trial," Dr Shameem says. Fijis' new Police Commissioner Andrew Hughes had named Fiji's ten most wanted criminals last week as part of Operation Strike Back, aimed at countering the drastic rise in the number of serious crimes in the country, but Dr Shameem says every person suspected of a crime is presumed innocent unless the court decides otherwise. She says if the suspects whose names have been published are found to be innocent than the state may be liable for compensation to the person. The Fiji Human Rights Commission says under the circumstances the right to privacy; section 37 of the constitution may also be relevant. Public announcement identified the men, however did not say they were necessarily guilty, but were being sought by police in their investigation.

From http://www.pacificislands.cc/ 09/03/2003

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Fiji Ministry of Public Enterprises has taken control of the Daily Post newspaper in which the state has a majority shareholding. The deputy secretary for public enterprises, Lenaitasi Korodrau, will become the acting chief executive until a permanent appointment is made. Daily Post chairman Malakai Naiyaga says board members would assume responsibility for the paper and manage the overall operations of the company. The information minister, Simione Kaitani, is quoted as saying the management contract of Associated Media Limited and its managing director, Yashwant Gounder, were terminated yesterday. No reason for the termination has been stated.

From http://www.pacificislands.cc/ 09/10/2003

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The South Pacific Regional Environment Program has established a taskforce to review its core functions after some island countries questioned the effectiveness of its work. The Fiji-based program's executive director, Asterio Takesy acknowledged the concern by member countries and said the taskforce will examine the program's core functions and change the way it implements projects. Takesy said Pacific member countries have agreed to increase their financial contributions to the program by 21 per cent to stabilise and expand the functions of its secretariat

From http://www.pacificislands.cc/ 09/17/2003

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A spate of drownings of children under five has prompted the New Zealand Recreation Association (NZRA) and the Water Safety New Zealand (WSNZ) to tighten up supervision policy for children at public swimming pools. The new policy unveiled today was developed after six children under the age of five drowned in public pools between June 1999 and November 2002. In future children under eight must be actively supervised by a caregiver aged 16 years or more. NZRA said active supervision meant the caregiver watching the child at all times and having the ability to provide immediate assistance. Previously caregivers only needed to be 14 years old and their supervision responsibilities were not clearly defined. NZRA president Nigel Cass said the revised policy was long overdue. "Pool lifeguards across the country are constantly having to deal with cases where young children are dropped off at pools and left to fend for themselves, or caregivers who are supposed to be looking after young children are busy doing their own thing," Mr Cass said. "Supervision of young children is a shared responsibility for all of the community…however, the end responsibility, and greatest overall impact if something goes wrong, lies with the caregiver." WSNZ executive director Alan Muir said a review of the six drownings had highlighted the lack of caregiver supervision as a common contributing factor. In comments on the drowning of four year old at Porirua earlier this year Wellington coroner Gerry Evans said while the boy's mother had not read pool supervision rules, the Porirua City Council-owned swimming centre had failed to make clear the rule that children under eight must be accompanied by a person 15 years and over. ACC is to fund promotional material and new signs for all public pools.

From http://www.nzherald.co.nz/ 09/11/2003

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Foreign students studying in New Zealand will no longer be able to get free or subsidised health care, when the Health Ministry brings in changes to eligibility criteria next month. The ministry said today it was changing the eligibility criteria for publicly funded healthcare from October 30. The Eligibility Direction sets out eligibility criteria for publicly funded personal health and disability services in New Zealand. Only people who meet the criteria defined in the Eligibility Direction can receive free or subsidised services. Eligibility settings are largely based on rights of citizenship, humanitarian and international obligations, and recognition of the contribution to New Zealand made by residents and long-term work permit holders. Key changes to eligibility include: * changing the eligibility settings for New Zealand citizens so they are eligible, regardless of how long they are in New Zealand; * increasing the age from under 16 years to under 18 years, that a dependant child may be deemed eligible via an eligible parent/legal guardian; * removing eligibility for student permit holders and visitor permit holders. Health Ministry deputy director general of clinical services Colin Feek said the changes were timely given the increasing number of international students. "Of the 82,000 FFP (foreign fee-paying) students in New Zealand last year, it's estimated that about 20,000 are currently eligible for publicly funded health services," Dr Feek said in a statement. "I don't consider the Government has an obligation to provide this second group of permit holders public funded health services, as they generally don't intend to remain here on a permanent basis. "Also, removing eligibility for FFP students it will eventually free up some of the funding for eligible people." However, the changes will not affect those who are currently eligible. Visitors and students who are granted consecutive permits and visas to re-enter New Zealand will retain eligibility. Compulsory medical and travel insurance provisions will apply to all international students enrolled or enrolling from January 1, 2004, regardless of how long they have been or intend to be in New Zealand. Dr Feek said many education providers already required international students to hold health insurance for the period of time they are studying in New Zealand. The amendments will not affect overseas visitors' eligibility for cover for personal injury under the Injury Prevention, Rehabilitation, and Compensation Act 2001. Acute health services provided by district health boards to ACC will remain available to everyone in New Zealand. Australian residents and British nationals will also retain eligibility for urgent treatment.

From http://www.nzherald.co.nz/ 09/24/2003

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PNG - An Australian academic says if Australia police are to be sent to Papua New Guinea they should be line officers, not advisors. The two nations have agreed in principle to send around 200 police to overcome what Canberra calls a law and order crisis? Dr Sinclair Dinnen, an academic with the Australia National University specialising in law and security issues in Melanesia, says there have been advisors working with the PNG police for some time. But he says they tend to be sidelined and it might be better if the Australian police could work as contracted line officers. I think there are issues of great sensitivity and no doubt there would be some degree of resistance within elements of the Royal Papua New Guinea constabulary. I suspect that the PNG government would be open to certainly discussing that and I also think that that way of delivering would be more effective than the current system,?Dinnen said. Meanwhile, PNG lawyer Powes Parkop from the organisation Melanesian Solidarity says if PNG police force is failing Australia should bear some of the responsibility for it. Australia has been running the police in Papua New Guinea all this time. It is on their advice that we have this type of police . What good is it to send more police when it's already been done, Parkop said.

From http://www.pacificislands.cc/ 09/20/2003

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Cabinet will soon finalize drafting instructions to allow for the drafting of a Federal Constitution for Solomon Islands. Deputy Prime Minister Snyder Rini yesterday revealed that the Commonwealth Secretariat in London has agreed to fund a constitutional lawyer to draft the federal constitution. He stressed that the federal constitution is NOT a manufactured document. Instead, he said, it is constitution that reflects the aspirations of the people of Solomon Islands, fulfilling the concept of a "Home Grown" Constitution. Rini said the planned constitutional change is a bipartisan effort and support between different parties, including the majority of the people of Solomon Islands and the government of the people is obliged to pursue what the majority of its people want, as indicated in the two rounds of country-wide consultations. He said there is overwhelming support to move away from the current centralist system of government. "The decision to do so is irrevocable. They are in support of the constitutional reform that will lead to the introduction of federalism in Solomon Islands, a component of which will be the introduction of state government system," Rini said.

From http://www.pacificislands.cc/ 09/19/2003

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Prime Minister Edward Natapei says he will resist pressure to curb media freedom. Earlier Mr. Natapei said he had been facing pressure since the beginning of the year to restrict the media.The issue has been heightened by a spat between the chairman of the Vanuatu Maritime Authority (VMA), Christophe Emele and the Vanuatu Daily Post newspaper. The VMA is under investigation for mismanagement and Emele has taken exception to some of the reports carried by the Daily Post. There have been allegations of assault against Daily Post staff and Mr. Emele won a short-lived injunction to stop it publishing stories concerning himself, his family, and the VMA. The Media Association had made a personal approach to the Prime Minister, who says the media plays vital role. "We have given them so much freedom that in some cases, our people are in fact saying that perhaps we should try to vet any news that comes in from the media. I have resist that because I believe its important we allow the media to be free to publish any information that is the truth about what's happening in the country."

From http://www.pacificislands.cc/ 09/17/2003

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A LEADING media figure in Samoa says the government should clean up laws which stifle freedom of information rather than worry about a code of ethics for the media. Savea Sano Malifa, the editor-in-chief of the Samoa Observer, says the code of ethics which the prime minister called for already exists and the journalists association keeps a close eye on what goes on. Savea says there is more of an issue over public opinion being stifled; think if the government really does think seriously about this sort of thing, I think it needs to clean up the laws in Samoa, which tend to stifle press opinion and thought, free thought in this country. For instance, there is a Publishers and Printers Act...This one requires publishers and editors to reveal their sources of information. Savea says the current administration has been tolerant of the private media in Samoa. He says he concerned at this new development because it appears to be an attempt by the government to control all media in the country.

From http://www.pacificislands.cc/ 09/04/2003

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Samoa - Prime Minister Tuilaepa Sailele has compared drug dealers to murderers at the launch of a campaign against the use of illegal substances. He said a child who used drugs was like a person who had died ?he says they were of no more use. He said this meant that dealers were in effect responsible for taking them from their families. Samoa Chief Justice has described the level of marijuana use in the country as at being at epidemic levels. The Supreme Court has a policy of imposing jail sentences on nearly all offenders, but numbers are still increasing. Samoa has also seen the appearance of a version of the drug methamphetamine, known as ice. The Commissioner of Police, Papalii Lorenese Neru, said the seriousness of the drug problem had not been acknowledged in the community. The Prime Minister says he is considering setting up a task force to help police combat illegal drugs.

From http://www.pacificislands.cc/ 09/23/2003

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ASEAN Lawmakers Demand Acceleration of Free Trade Area

Parliament members of the Association of Southeast Asian Nations (ASEAN) on Thursday urged member countries to accelerate the full implementation of a free trade area in the region through regulation reforms. The lawmakers, who are were to attend the 24th general assembly of ASEAN Inter-Parliamentary Organizations (AIPO), said in a statement they "call for ASEAN members to carry out economic reforms, including in taxation and customs systems, to accelerate the ASEAN free trade area." Headed by Imam Addaruquitni of Indonesia, the AIPO Economic Committee also urged member countries to implement various economic agreements that will renew regulations on regional investment and trade towards the ASEAN Vision 2020. The AIPO expressed full support for the "ASEAN plus Three cooperation," which includes Japan, China and South Korea, to create mutually beneficial cooperation in their efforts to establish East Asian economic integration in the future. The AIPO groups ten members of the ASEAN, namely Indonesia, Brunei, Malaysia, Thailand, the Philippines, Singapore, Laos, Cambodia, Myanmar and Vietnam. Brunei and Myanmar got the status of special observers in AIPO because they have no parliaments.

From Xinhuanet 09/11/2003

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Anti-Terror Center in Central Asia to Be Launched

The prime ministers of China, Russia and four Central Asian countries signed agreements yesterday that set plans in motion for a long-awaited regional anti-terrorism center in Uzbekistan. The leaders also agreed to give the Shanghai Cooperation organization a leading role in boosting economic ties among members China, Russia, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan with the goal of creating a free trade zone. Moves to found an anti-terrorism base in a volatile region long a focus of Muslim separatist movements opposed to rule by Communist parties and more recently by leaders seen as secular heads of one-party states gained momentum after the September 11 strikes on the United States. Plans for the center have been in the works for years but the SCO, set up seven years ago to solve border disputes and to fight terror, had done little more than discuss the idea until now. The center will be in the Uzbek capital, Tashkent, but the nature of its role was not made clear. "I am highly satisfied with the fruits of the meeting. These actions show that the SCO has entered a stage of overall development," Chinese Premier Wen Jiabao told reporters. "Economic development is an important area of cooperation for the SCO. The leaders signed six documents, including one authorizing the regional anti-terror body and its personnel arrangements and an outline of major points of regional economic cooperation. The SCO, set up as the Shanghai Five in 1996 to resolve Soviet-era border disputes, admitted Uzbekistan in 2001 and shifted focus to combating Islamic militants. One Western diplomat who follows the organization said the SCO had yet to prove itself as little more than a talk shop and was hard pressed to point to its achievements. "In terms of what they can achieve, it is still an ongoing process. They haven't done much," the diplomat said. In August, SCO members held joint military exercises in China in a sign cooperation was increasing. The anti-terrorism exercises would help China to tighten the noose on ethnic Uighur Muslim separatists in its wester Xinjiang region that borders Afghanistan and Pakistan as well as Kazakhstan.

From http://www.etaiwannews.com/ 09/24/2003

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CHINA: HKSAR Basic Law Committee Members Appointed

Wu Bangguo, chairman of the National People's Congress (NPC) Standing Committee on Wednesday issued certificates of appointment to the members of the Hong Kong Special Administrative Region (HKSAR) Basic Law Committee. There are 12 members, half from the mainland and half from Hong Kong, on the committee, a working organ of the NPC Standing Committee. They were appointed at the first session of the 10th NPC Standing Committee held on March 19 for a five-year term, to succeed the out-going 12 members of the committee, which was set up on Jul. 1, 1997. The committee has Qiao Xiaoyang as its director and Wong Po-yan as the deputy director. The appointment ceremony was presided over in the Great Hall of the People by Li Tieying, vice chairman of the Standing Committee of the NPC.

From http://news.xinhuanet.com/ 08/27/2003

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Academic New Curriculum Development Chief

City University Professor Wong Yuk-shan has been reappointed Chairman of the Curriculum Development Council for a two-year term starting today. Six new members have also been appointed. They are Cinda Chan, Professor Chan Wing-ming, Lai Shu-ho, Professor Albert Lee, Tsang Chi-hung and Yung Heung-hung. Secretary for Education & Manpower Professor Arthur Li welcomed their appointment. "With their professional knowledge in curriculum reform in various stages of education, I am confident they will be able to make positive contributions and provide effective support to the development of the council," Professor Li said. He also thanked out-going members Chan Yuk-kai, Cheng Wai-fung, Chow Luk Ying-pui, Ho Kit-ching, Dr George Hung, Maggie Koong, Professor Lee Wing-on, Leung Pui-han, Ng Hok-ling, Wong Mak Kit-ling and Professor Yip Din-yan for their contributions. The council advises the Government on all matters relating to curriculum development for the local school system from kindergarten to the sixth form. All appointments are for a period of two years with effect from September 1. Full membership is: Professor Wong Yuk-shan, Chairman; Education & Manpower Bureau Principal Assistant Secretary Dr Chan Ka-ki, Vice-Chairman; Anthony Au; Alex Cheung; Joseph Lee; Eddy Lee; Eric Leung; Dr Leung Sai-wing; Lo Lee Oi-lin; Ng Sui-kou; Professor Amy Tsui; Tsui Kwai-king; Cinda Chan; Professor Chan Wing-ming; Lai Shu-ho; Professor Albert Lee; Tsang Chi-hung; Yung Heung-hung; HK Examinations & Assessment Authority Secretary General Choi Chee-cheong; and, Education & Manpower Bureau Principal Inspector Wai Pui-wah.

From http://www.news.gov.hk/ 09/01/2003

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Chinese Government Urges Transparency in Village Administration

The Chinese government is urging village level authorities to rule in a transparent and democratic way. In a televised nationwide address, Vice-Premier Hui Liangyu says publicizing village administrative work is a most important part of setting up a democratic system at grassroots level. Chinese law stipulates that issues relating to villagers' interests must be made public and the state of village finances must be reported every six months.

From CRI 09/02/2003

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Governors to Care More for Common People

Chinese President Hu Jintao is urging party organizations and local governments at all levels to try their best to work on the issues of most concern for the common people. In a meeting with these governors and officials at the ministerial level in Beijing, Hu Jintao emphasized that government and Party authorities of all levels should work and make decisions in line with common people's interests and will. Hu Jintao asked them to care more about people's living standards and go to places where the economy is backward and people's are suffering hardships in their daily lives.

From CRI 09/03/2003

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CPC Watchdog to Unify Management over Branch Offices

The Central Commission for Discipline Inspection, the Chinese Communist Party's chief watchdog, is unifying its supervision of government departments and major state-owned enterprises, in an effort to ensure its inspectors are free from the influence of those under their supervision. Based on experiments with the Ministry of Health, the State Food and Drug Administration and the State Administration for Industry and Commerce in 2002, the scheme has expanded this year to five other commissions and ministries, according to the latest issue of the Beijing-based "Outlook" weekly. The five new departments under the scheme are: the State Development and Reform Commission, the Ministry of Commerce, the Ministry of Labor and Social Security, the Ministry of Land and Resources and the State Press and Publication Administration. "The experiments have been going smoothly and we ultimately aimto cover all the central authorities' commissions and ministries and major SOEs," an official with the Discipline Commission said. According to the existing decades-old practices, many of the discipline inspectors in ministries and commissions are under the leadership of, or even on the payroll of, the department they supervise. Analysts say this situation has created complications in the relations between the watchdogs and their targets. "Unification of all the watchdog's subsidiaries and managerial separation between the inspectors and their working target will ensure inspectors better fulfill their duties and curb corruption inside the Party," the report said. Under the new trial mechanism, the party discipline inspectors sent by CPC's Central Commission for Discipline Inspection to government organs will directly report to the commission and follow its orders, instead of the prior reporting to both the watchdog and the institutions under inspection. The commission will have the exclusive power to check and decide the working merits of all its branches instead of sharing the power with government organs, so as to effectively enhance thecommission's control over the agencies, according to the watchdog. Such a bid will help the inspectors avoid the influence of the ministries or commissions they are responsible for, analysts said. Though the trial has so far been smooth and fruitful, the commission admitted it suffers a lack of prior practices or experiences to draw help or lessons from and has to be cautious enough, given the political, policy and professional nature of thereform. The right method should be to "try, check and improve", it said. Though the other more than forty agencies of the commission notunder the trial will for now remain under the dual leadership, thenew management system will finally spread to all the commission's more than 50 agencies in ministries, commissions, organizations and institutions connected to the State Council and some state enterprises, according to the watchdog.

From Xinhua net 09/05/2003

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HK Government Withdraws Draft Security Bill

Hong Kong Special Administrative Region (SAR) Chief Executive Tung Chee Hwa said Friday that the SAR government has decided to withdraw the drafted National Security (Legislative Provisions) Bill, known as Article 23 of the Basic Law. Addressing the media at noon after a special Executive Council meeting, Tung noted that Article 23 of the Basic Law stipulates that Hong Kong must legislate on its own to ban actions that would threaten national security. "This is a representation of the Central Government's trust of the Hong Kong people," he said. "Legislating on Article 23 is a constitutional obligation and one that should be fulfilled by the citizens of Hong Kong. Judging from the results of consultations done earlier on, on this particular point there has been a consensus in the community," Tung said. He said that concerning the detailed legislative provisions, there is still doubt and there are still questions remaining in the community. "To afford more time for the community to ponder over the issue, we have decided to withdraw the bill, and within the Security Bureau we will set up an internal task force to review and take stock of the entire legislative project," he said. The Chief Executive and his Council believe that after another round of consultation, Article 23 legislation will win consensus from the community that the Hong Kong government will eventually be able to put it through. Tung noted Hong Kong is in a painful economic adjustment, especially after SARS. "We have been hit hard by SARS and we all the more require all quarters of society and all sectors of society to come together to revitalize the economy," he said. "The Hong Kong government has pushed ahead with a range of measures to revitalize the economy and there have been good results coming out of these measures, so we must grasp this very valuable opportunity to continue to push our economy further," said Tung.

From http://news.xinhuanet.com/ 09/05/2003

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Big Cities Joint to Crack Down on Pirated Software

Big cities such as Beijing, Shanghai and Guangzhou have joined together to fight the making and selling of pirated software. Launched by the Chinese Copyright Administration, the four-month-long campaign will crack down on the trade in pirated software and thereby cut off its marketing channels. Officials from the administration say they will expose and severely punish those found guilty of dealing in pirated software, prevent the spread of such software via the Internet and clamp down on related illegal activities so as to foster an orderly, well-regulated software market.

From CRI 09/08/2003

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Supreme People's Court Vows to Standardize Court Procedures

China's Supreme People's Court has vowed to further protect rights of the people who seek justice through courts. A high official from the top level court says procedures will be further standardized in 12 aspects to avoid possible losses by parties filing lawsuits.This standardization also declares that people will have a clear understaning their rights and responsibilities during the legal process .

From CRI 09/10/2003

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Beijing Establishes SARS Alert System

A three-level emergency alert system has been in place in Chinese capital Beijing to prevent the possible comeback of severe acute respiratory syndrome, or SARS, in the coming winter. The alert system is part of the municipal government's SARS emergency prevention plan released Thursday. When the city reports one SARS case, the third-level alert will be instituted and school access would be strictly controlled. The alert will be raised to the second level when the capital reports six or more SARS cases and has three or more outbreak locations. Quarantine measures would be taken. When the city sees 30 or more diagnosed cases, the first level alert would be sounded. Health checks will be strictly imposed at accesses to the city. And a health condition report system will be put into use in hotels.

From CRI 09/12/2003

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Hong Kong: 53 Arrested in Election Bribery Claims

The ICAC has so far arrested 53 people over the Rural Committee Election for Shap Pat Heung allegedly involving corrupt and illegal conduct. Twelve of the arrestees are being detained by the ICAC, while 41 have been released on bail. They are 52 village representatives and a businessman. The inquiry concerns allegations in relation to corrupt conduct in bribing electors, providing refreshments and entertainment at the election, using force or duress against electors, and illegal conduct over election expenses. Meanwhile, the ICAC is appealing for information on the whereabouts of election agent Kam Chi-shing to assist its investigation. Anyone with information on Kam's whereabouts are urged to call the ICAC 24-hour hotline 2526 6366. Information received will be treated in the strictest confidence.

From http://www.news.gov.hk/ 09/17/2003

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JAPAN: Koizumi Half Way Toward Reforming Public Firms

Can Prime Minister Junichiro Koizumi live up to his pledge to save the nation's ailing economy by reforming monstrous public corporations? Masaharu Ikuta, president of Japan Post, speaks at an April 1 ceremony marking the entity's launch. After 2 1/2 years in office, the answer is anything but clear. Many say that the reforms he promised are only half-complete at best. Therefore, whether Koizumi can keep his word will depend on what he does after -- or if -- he wins the Liberal Democratic Party's presidential election on Sept. 20 for a second term. Koizumi's long-held theory for curing Japan's economic malaise involves privatizing special government-backed corporations -- now totaling 163 -- as well as the postal savings and insurance systems, which provide huge amounts of funding to the debt-ridden public firms. Economists and business leaders support Koizumi's basic idea, but the prime minister has often disappointed them by reaching compromises with veteran LDP lawmakers who are trying to protect their vested interests. For the LDP leadership poll, Koizumi is planning to run on a platform of privatizing the postal savings and insurance systems, as well as four semigovernmental expressway firms. The highway firms are all typical examples of inefficient public corporations born of pork-barrel politics. Koizumi wants to privatize the road corporations by 2005 and postal services by 2007. However, his postal privatization plan has drawn strong protests from within the LDP, and it looks uncertain if the plan will remain on the party's agenda even if Koizumi is re-elected as its chief. Many LDP lawmakers are also opposed to the scheme mapped out last year by an advisory panel on the privatization of the expressway firms. "If he fails to include (privatization pledges) in the LDP's manifesto (for the next general election)," you can expect little change, as in his first term, said Satoru Matsubara, a professor of economics at Toyo University in Tokyo. The combined size of the postal saving and insurance systems dwarfs that of any of the nation's private-sector financial institutions. The 300,000 workers at Japan Post -- which operates mail, postal savings and insurance services -- act as one of the strongest vote-gathering machines for both ruling and opposition parties. The postal savings system, which offers interest rates higher than those in the private sector, and the postal insurance system have now accumulated a stunning 360 trillion yen, or roughly 25 percent of the estimated 1.4 quadrillion yen total individual assets in Japan. According to an estimate of the government's Council on Economic and Fiscal Policy, households withdrew 65 trillion yen from the stock market between fiscal 1990 and 2001, while they boosted assets in the postal savings and insurance systems by 180 trillion yen over the same period. Through the "zaito" fiscal loan and investment program, much of the money entrusted to these systems ends up at inefficient, debt-ridden public corporations, most notably Japan Highway Public Corp. and three other road-building firms. The four firms are now saddled with a total of 40 trillion yen in debts. "Delays in deregulation and privatization (of government-backed firms) have stagnated the flow of Japanese funds and exhausted the economy," Matsubara said. After a lengthy battle with his LDP opponents, Koizumi transferred jurisdiction over all postal-related services from the Public Management, Home Affairs and Posts and Telecommunications Ministry to Japan Post, a semigovernmental body created on April 1. Koizumi praised Japan Post as "the first step" toward his goal of privatizing postal services, although he was merely walking the /trail blazed in 1997 by then Prime Minister Ryutaro Hashimoto. However, the postal savings and insurance systems under Japan Post are still by far the top suppliers of funds to the zaito program. At the end of fiscal 2001, contributions from the postal savings and insurance schemes accounted for 208 trillion yen of the 370 trillion yen in a special government account managing zaito funds. The government plans to give Japan Post some autonomy on investing assets in fiscal 2008. But with debate still raging over privatization issues, the government hasn't decided how much investment policy should remain under government control, including the minimum amount to be injected into the zaito program. Even Koizumi's promised reforms of public corporations are floundering. "(The prime minister) should be more tenacious. He gives things up so easily," said an official at the Land, Infrastructure and Transport Ministry. Under a plan announced in December 2001, only 17 of the 163 special government-backed corporations will be abolished, while 38 will be reorganized into "independent administrative bodies" -- a move criticized as a mere name change. Forty-five others will either be fully or partly privatized, but specifics on how their operations will be streamlined have not been given in most cases, including those of the four expressway firms. There is also the question of whether the privatized road corporations will be shielded from political pressure to build more unprofitable toll roads in rural areas. A final report submitted in December by an expert panel on the privatization of the road firms strongly recommended that a merged privatized road firm should put its priority on repayment of snowballing debts, not on construction of new highways. The fate of pending road construction plans should be decided based upon such criteria as their economic and social impact, rather than political interest, members of the panel argued. But some LDP lawmakers and bureaucrats at the transport ministry are strongly opposed to the recommendations and have said they will not heed the report as they draft legislation for privatizing the firms. Koizumi has also failed to clarify whether he will follow the recommendations, apparently to avoid a clash with his opponents within the LDP. The land ministry will draft legislation on the privatization by the end of the year, so it can be submitted to the Diet next year, said Kazuaki Tanaka, a professor at Takushoku University and a key member of the privatization panel. "In half a year, you'll see how serious the government is about the privatization. A glance at the bills will make it crystal clear." Tanaka lauded Koizumi for raising public awareness of the problem of the debt-ridden expressway firms. "(Privatization of the road firms) has been an untouchable, sacred area, but we have come to a point where it is being discussed," he said. But Tanaka also has criticism for Koizumi, for failing to select the right people to do the job. Nobuteru Ishihara, minister in charge of administrative reforms, has often been criticized for being a mouthpiece for LDP lawmakers with vested interests in the road firms, while land minister Chikage Ogi has refused to sack Japan Highway President Haruho Fujii despite repeated demands from the advisory panel. Tanaka noted that the fate of Koizumi's reform initiatives will depend on his picks for a new Cabinet -- if he is re-elected as LDP chief. (by Reiji Yoshida)

From The Japan Times 09/04/2003

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Record High Number of Candidates Pass Civil Service Exam

TOKYO - National university graduates who passed this year's level-2 civil service exam for local administrators hit a record high number of 3,616, exceeding those from private universities for the first time, the National Personnel Authority said Thursday. The personnel authority believes a tough labor market in the private sector pushed more national university graduates to take the level-2 exam, which is generally required for appointment to senior administrative positions at regional offices of government ministries and agencies.

From http://www.japantoday.com/ 09/04/2003

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A Chance to End Faction Politics

Factional dissension in the Liberal Democratic Party is probably the most significant aspect of the party's presidential election set for Sept. 20. Factions critical of Prime Minister Junichiro Koizumi are so deeply divided that they have failed to field a single candidate. The group headed by former Prime Minister Ryutaro Hashimoto, by far the largest faction, is no longer monolithic. This almost certainly means that Mr. Koizumi's chances of winning re-election have greatly increased. LDP factions have suffered a gradual erosion of influence over the past decade. They received a major setback when a new Lower House election system of single-seat districts was introduced in 1994. Koizumi's debut in April 2001 -- which defied intraparty dynamics -- seems to have accelerated the decline of factional influence. Now the LDP has a good opportunity to overhaul the way it selects its leader. The forthcoming election, campaigning for which begins next Monday, should be an occasion to conduct a vigorous policy debate, instead of playing the factional numbers game. An LDP leadership poll is effectively a contest to select a prime minister, since the party holds a majority in the Lower House of the Diet. Past presidential races were almost always marked by a fierce factional struggle -- except in rare cases in which the outgoing president handpicked his successor or the incumbent was re-elected unopposed. A faction's raison d'etre was to put its leader in power, and its fortune depended largely on the leader's ability to raise funds and secure posts for his loyalists. That is no longer true, as shown by the turmoil in the Hashimoto faction. The group, which boasts a following of 100 members, has its roots in the powerful faction founded by former Prime Minister Kakuei Tanaka in 1974. Hashimoto and three former prime ministers were all one-time students of the "Tanaka class." But it is now painfully clear that the largest faction is not necessarily the most influential one. Divisions in the Hashimoto faction surfaced recently as its leading members disagreed over whether to support Mr. Koizumi. Mr. Hiromu Nonaka, former LDP secretary general and a vocal critic of the prime minister's reform agenda, argued that either the anti-Koizumi camp should unite behind a single candidate, or the Hashimoto group should field its own candidate. But Mr. Mikio Aoki, who heads 42 LDP legislators in the Upper House, sided with Mr. Koizumi, saying that the prime minister's high popularity would be a big asset to the party in next year's Upper House election. The Hashimoto group was dealt a further blow when three of its key members announced their intention to run -- something unprecedented in its long history. The episode displayed a loss of factional leadership. Although the faction has finally settled on a single candidate, former Transportation Minister Takao Fujii, whether all of the faction's Lower House members will actually vote for him seems moot. Also in disarray is the Horiuchi faction, which, along with the Hashimoto group, belongs to the conservative mainstream. Its leader, Mr. Mitsuo Horiuchi, chairman of the party's Executive Council, was until recently an anti-Koizumi stalwart. Now, though, he is throwing his weight behind the prime minister. Other key members who remain opposed to Mr. Koizumi are poised to put up a candidate of their own. So the field is wide open, adding an air of confusion to the contest. Already in the running is Mr. Shizuka Kamei, former chairman of the Policy Affairs Council and leader of the Eto-Kamei faction, the spearhead of anti-Koizumi forces. Former Foreign Minister Masahiko Komura, who heads his own faction, is expected to join the race. All of this makes it uncertain whether Prime Minister Koizumi will be able to win a majority on the first ballot. If he does not, a runoff will be held between Mr. Koizumi and the runner up. In that case, the second-place faction could join hands with the third-place group to prevent Mr. Koizumi from winning. A similar scenario played out once before -- in the 1956 runoff -- when the top candidate lost to a rival backed by the second- and third-place groups. Such an "unholy" alliance seems unlikely now, however, in part because factional affiliation carries little weight in party-led elections for single-seat districts. What is more, Prime Minister Koizumi is committed to removing factional influences not only in presidential polls but also in Cabinet reshuffles and appointments of party executives. It is a commitment that must be firmly maintained in order to rid the LDP of factionalism. First and foremost, its leader must be elected on the basis of individual, not factional, decisions.

From The Japan Times 09/05/2003

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Gov't to Improve Treatment of HIV Patients in Detention

KYOTO - The Justice Ministry has said it will send written instructions to all detention centers across Japan to improve their treatment of HIV patients held in custody and eliminate discrimination, a lawmaker said Thursday. Etsuko Kawada, 54, a House of Representatives member, and her 27-year-old son Ryuhei Kawada, who is a hemophiliac infected with HIV through tainted blood products, had urged the ministry to educate its staff on human rights in light of discrimination suffered by an HIV-infected male defendant held at the Kyoto detention house.

From http://www.japantoday.com/ 09/05/2003

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The First Ministerial Meeting Concerning Measures Against Crime

The First Ministerial Meeting Concerning Measures Against Crime was held at the Prime Minister's Official Residence. This meeting was held in light of the current situation with frequent occurrence of juvenile and heinous crimes which pose an immediate threat to the people's daily lives. Aiming for the re-establishment of Japan as "the safest country in the world," the meeting seeks to secure a close cooperation with related headquarters and administrative organizations and also to comprehensively and actively promote efficient and appropriate anti-crime measures. At the meeting, decision was made to compile the "Action Plan for the Realization of a Society Resistant to Crime (tentative name)" by the end of 2003. It was also determined to discuss the strengthening of measures against various crimes including the shoreline measures as its pillars; the promotion of measures to develop a social environment where crime is less likely to occur; and assistance of activities for the people to secure their own safety. At the beginning of the meeting, Prime Minister Junichiro Koizumi said, "There is a need for the Government as a whole to work together to regain the trust of the people that `Japan is the safest country in the world.' I would like to ask for the cooperation of the related ministers."

From http://www.kantei.go.jp/ 09/05/2003

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Japan's PM Koizumi Expected to Be Re-Elected LDP President

Japanese Prime Minister Junichiro Koizumi is on track to win re-election on September 20 as president of his Liberal Democratic Party (LDP), according to the latest poll. Mr Koizumi is pitted against three others but all bets seem to be on the popular leader keeping his top job and leading the party in a nationwide election that must be held by mid-2004. Stylish, a nice hairdo, and speaks in a clear, direct language - just some of the traits Mr Koizumi possesses which many Japanese say appeal to them. But also known as a loner, he was never considered a favourite among some of his Liberal Democratic Party members. Yet, in the April 2001 LDP presidential election, he clinched a surprising landslide victory. According to public opinion polls, when Mr Koizumi took office, he had more than 80 percent public support. This number has halved ever since. But according to public opinion poll released by NHK recently, Mr Koizumi's approval rating has reached 60 percent. Candidates running for this year's LDP presidential race took turns to speak in front of the Shinjuku train station. And Mr Koizumi was the main reason why so many have turned up. "At his age he can still look good. That's cool." The other candidates, realising that looks count, had all gone for a make-over. Conservative Shizuka Kamei updated his wardrobe and glasses. And Takao Fujii, a heavy smoker, had his teeth whitened. But many Japanese also wanted to hear what they had to say. "With so many people today suffering from the recession, I'd like to know how the candidates plan to handle the situation." Mr Koizumi expressed confidence that Japan's economy will get back into shape soon. "We'll find a way to effectively make use of the talent of our people. This is part of my structural reform," he said. But his critic says Mr Koizumi's structrual reform will destroy Japan's economy. Mr Shizuka Kamei, former LDP chief policymaker, said: "I announced my candidacy to bring an end to Koizumi politics." It's questionable if the candidates would be able to take away votes from Mr Koizumi. Already, even those who never favoured Mr Koizumi's policies, have made it clear, he's the man they want. (by Michiyo Ishida)

From http://www.channelnewsasia.com/ 09/09/2003

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Shoo-in Koizumi Eyes October Diet Dissolution

Attention shifts to the Cabinet reshuffle and the election date. Prime Minister Junichiro Koizumi, certain to win the Liberal Democratic Party leadership race, is set to dissolve the Lower House in October and call a snap election by the end of November, sources said. Koizumi seems to have secured a majority for his party's Sept. 20 election in the first round, findings by The Asahi Shimbun indicate, meaning there would be no need for a second ballot. Koizumi has three challengers-former party policy chief Shizuka Kamei, former transport minister Takao Fujii and former Foreign Minister Masahiko Komura. LDP Diet members and local party members select the leader. The Asahi Shimbun found that about 60 percent of the 357 votes held by LDP Diet members will go to Koizumi, while most of the 300 votes to be cast by the local chapters are also likely to be for the incumbent. Now that Koizumi is certain to win, the focus of attention in the political arena has moved to the new Cabinet lineup and party posts and the date for the Diet dissolution. Koizumi told LDP lawmakers from the Kansai region Sunday that he preferred an election in the fall. The same night, an influential party member close to Koizumi told The Asahi Shimbun: ``The prime minister has made up his mind. Diet dissolution is sure to take place in the fall.'' Meanwhile, Mikio Aoki, leader of the LDP Upper House caucus, and ex-Prime Minister Yoshiro Mori-both supporters of Koizumi-have called for financial affairs minister Heizo Takenaka, an advocate of Koizumi's reform plans, to be replaced. Koizumi would, therefore, be forced to choose between harmony in his party and maintaining his reformist agenda. It became clear Koizumi would gain a majority of the Diet members' votes when the Hashimoto and Horiuchi factions, failing to endorse candidates from their own factions, decided to let faction members vote freely, with many backing Koizumi. The Asahi finding of prefectural chapters shows Koizumi enjoys ``overwhelming support'' in Tokyo and 10 prefectures, including Kanagawa and Ishikawa. In 29 prefectures, it was found that ``many support Koizumi, although there are also quite a few nonsupporters.'' In three prefectures, including Hiroshima, Kamei's constituency, and Gifu, Fuji's constituency, support for Koizumi is weak.

From http://www.asahi.com/ 09/15/2003

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Koizumi Hints at October Election

Prime Minister Junichiro Koizumi suggested Tuesday he may dissolve the House of Representatives next month because holding simultaneous Lower and Upper House elections in summer "is not a good idea." Prime Minister Junichiro Koizumi holds an interview at the Liberal Democratic Party's headquarters in Chiyoda Ward, Tokyo. With Koizumi's re-election in Saturday's Liberal Democratic Party presidential race all but certain, political attention has shifted to whether Koizumi will dissolve the Lower House in October, as most Diet members expect. The Upper House is scheduled to hold its triennial election in June, and a Lower House election must be held by that time, before members' four-year terms expire. Many LDP members in the Upper House reportedly hope the elections for both chambers will be held simultaneously, but New Komeito, a partner in the ruling coalition, is against such a plan. "It's not just New Komeito," Koizumi said in response during an interview with The Japan Times and foreign media, "but many in the LDP also feel that holding two elections together would be burdensome because each house has a different election system. "I've always thought that it's not a good idea to hold the elections of both houses on the same day." Based on the Diet schedule, the earliest date the prime minister could dissolve the Lower House is Oct. 10. If it does happen then, an election is most likely to be held Nov. 9. Koizumi declined to comment on specific timing, saying only, "I know that many people are thinking" the election will be held in the fall. Referring to the first anniversary of his historic visit to Pyongyang on Sept. 17, 2002, Koizumi said he might visit Pyongyang again during his three-year term, under the right circumstances. He would not say whether he planned to visit before the two countries reach an agreement to normalize ties. "I would do anything to push for normalization if the timing is ripe," he said. Pyongyang must allow the American husband and seven North Korean-born family members of five abductees who returned home last year to come to Japan before normalization talks can resume, he said. Some in the government, including Chief Cabinet Secretary Yasuo Fukuda, have said that the case of Hitomi Soga, who is married to the American, will be treated differently to the other returnees, Kaoru and Yukiko Hasuike and Yasushi and Fukie Chimura. Koizumi said the government has a firm policy of trying to bring all eight family members to Japan. "We will continue to do so," he said. The prime minister said Japan and North Korea might hold a bilateral meeting on the abduction issue before the next six-nation talks are held. "It's possible, and we will talk on any occasion," he said. Asked about the Cabinet reshuffle, widely expected to take place Sunday if he is re-elected, Koizumi said he would appoint private sector personnel to Cabinet posts "if appropriate." There are strong calls from within the LDP to select ministers from the ranks of Diet members. Financial Services Minister Heizo Takenaka's position in the Cabinet has been the focus of attention; many LDP members are calling for his removal. But Koizumi only reiterated that Takenaka's cooperation is "indispensable" in his structural reform drive. He refused to say, however, whether he would reappoint Takenaka. Koizumi has made comments suggesting he will keep Takenaka while maintaining that he will decide for sure after the presidential election. "Of course, I will name someone who would cooperate with my (reform) track," he said. Koizumi was vague about specific measures to implement two of his key election pledges: the privatization of postal services and four debt-ridden expressway public corporations. Last year, an expert panel under Koizumi drew up a radical report that prioritized the establishment of privatized road firms that would focus on the repayment of growing debts, now totaling 40 trillion yen, instead of building new, unprofitable roads. Such a plan would deal a severe blow to many ruling party lawmakers who favor boosting road construction in their constituencies. But Koizumi only said he will "basically respect the report," and failed to touch on any details on the privatization scheme. (by Junko Takahashi, Reiji Yoshida)

From The Japan Times 09/17/2003

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Ogi to Eliminate `Unfair' Discount Toll System

The transport minister questions why this hotbed of misconduct still exists. A discount toll system operated by the Japan Highway Public Corp. and riddled with questionable practices will be eliminated. The discount system has cost Japan Highway about 220 billion yen a year. The money saved through the elimination of the system will be used to offset planned reductions in expressway tolls. Those reductions, of about 12 percent, are to coincide with the privatization of the expressway public corporations. ``The (discount toll system) is extremely unfair to the general driver,'' Chikage Ogi, minister of land, infrastructure and transport, said Friday. ``I decided to eliminate the system so that honest drivers would not be left holding the bag.'' The discount toll system was introduced in 1966 to encourage companies to use the expressways more. Under the system, companies that rack up total monthly tolls of 14,000 yen receive a 5 percent discount. The rate increases as the amount of the monthly tolls rises. The maximum discount rate is 30 percent, for monthly tolls exceeding 7 million yen. Since the late 1980s, a number of companies have taken advantage of the system by forming ``cooperatives.'' The more members of a cooperative, the higher the accumulated tolls-and the bigger the discount. Some cooperatives even invited member firms to act as ``agents'' to recruit new cooperative members on a commission basis. There have also been reports of questionable business practices and tax fraud at some of the current 1,200 cooperatives in the nation. Between 1997 and 2001, cooperatives accumulated total discounts of about 1.08 trillion yen, a huge burden on Japan Highway, which had been hit hard by declining toll revenue. ``This is a system that would have led to a boycott in foreign countries, and I am surprised that no move was made until now to eliminate it,'' Ogi said at a meeting Thursday. ``The cooperatives should be thoroughly investigated and the proper disciplinary action taken.'' According to Ogi's plan, the discount system will be phased out by not renewing the three-year contracts signed by the cooperatives. In the meeting Thursday, Ogi instructed Haruho Fujii, president of Japan Highway, and senior ministry officials to look into improprieties with the discount toll system. She said cooperatives found to have taken advantage of the system should have their discount privileges rescinded immediately and pay compensation to cover the losses.

From http://www.asahi.com/ 09/20/2003

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`New Face of the LDP': Youthful Abe Key to Election

At a comparatively young 49, the appointment of hawkish Shinzo Abe to the No. 2 spot in the Liberal Democratic Party adds an unbeatable ticket when the Lower House election comes around. Party insiders say popular Prime Minister Junichiro Koizumi's surprise choice of LDP secretary-general was made with an eye on the election expected in the fall. Abe is popular with voters because of his young, fresh image as well as his hard-line stance on North Korea. The appointment breaks much new ground. Abe can hardly be considered a hardened political veteran, having been elected only three times to the Diet. Nor has he held a Cabinet post. As deputy chief Cabinet secretary, he had a high public profile through his frequent television appearances on issues concerning North Korea. His popularity was the decisive factor when Koizumi, re-elected Saturday as party leader, scoped out the political landscape to replace Taku Yamasaki in the LDP's second most powerful post, sources said. Abe accompanied the prime minister during his historic summit meeting in Pyongyang with North Korean leader Kim Jong Il in September 2002. When Koizumi learned that eight of 13 suspected abductees were said to have died, Abe advised him not to sign the Pyongyang Declaration. Abe is also a strong critic of the Foreign Ministry, saying it doesn't have the stomach to do the job. Repeated surveys by the media show that Abe is perennially regarded as having leadership potential. Because of his enduring popularity, LDP candidates fighting elections around the nation often seek his endorsement through public appearances during campaign speeches. The opposition Minshuto (Democratic Party of Japan) is also trying to present a youthful image to voters ahead of the Lower House election expected in November. Compared with the LDP, which in years past has been viewed as geriatric, Minshuto appointed 50-year-old Katsuya Okada as its secretary-general, Yoshihiko Noda, 46, as chairman of the party's Diet Affairs Committee, and Yukio Edano, as chairman of the party's Policy Research Committee. Edano is only 39. Koizumi is trying to counter Minshuto's youthful look with the 49-year-old Abe, sources said. When Koizumi was mulling whom to appoint for important posts in the LDP and the government after his re-election as party president, lawmakers close to him begged him to utilize Abe's popularity since the all-important Lower House election is looming. They told Koizumi that Abe and Chief Cabinet Secretary Yasuo Fukuda were the only suitable candidates to replace Yamasaki. On the other hand, Minshuto's Noda, who like Abe has been elected to the Diet only a few times, said: ``Abe as the LDP's `face' is a threat to our party. We must work hard for the next Lower House election.'' Another Minshuto member, who asked not to be named, said that if Yamasaki, now embroiled in scandal over an alleged mistress, had been retained as LDP secretary-general, ``it would be easier for us (Minshuto) to fight in the election.'' After one television program in which the brand of ice cream Abe has liked since he was a child was mentioned, the product sold out in many stores. He turned 49 on the day he was appointed secretary-general. Abe lives with his 41-year-old wife, Akie, and a pet dog, Roi. He does not drink.

From http://www.asahi.com/ 09/23/2003

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Cabinet Support Jumps to 65% Following Reshuffle

TOKYO - The support rate for the cabinet of Prime Minister Junichiro Koizumi following Monday's reshuffle surged to 65%, recovering levels seen nearly a year ago, three national newspapers reported Wednesday. The rise reflects public backing for Koizumi's appointment of younger cabinet members as well as making Shinzo Abe secretary general of the ruling Liberal Democratic Party (LDP), the party's de facto No. 2 post, the papers said. (Kyodo News)

From http://news.japantoday.com/ 09/24/2003

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Ex-Finance Minister Shiokawa Calls It Quits As Lawmaker

TOKYO - Veteran lawmaker Masajuro Shiokawa, replaced as finance minister in Monday's cabinet reshuffle, said Thursday he will not seek reelection in the House of Representatives general election expected in November."I'll retire from political activities on resignation as finance minister," Shiokawa, 81, told colleagues in the ruling Liberal Democratic Party in a meeting. (Kyodo News)

From http://news.japantoday.com/ 09/25/2003

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Koizumi Names 26 Lawmakers As Parliamentary Secretaries

TOKYO - Prime Minister Junichiro Koizumi on Thursday named 26 lawmakers as parliamentary secretaries at 11 ministries and one agency to wrap up a series of appointments in a cabinet reshuffle Monday. Of the 26, 22 are from Koizumi's Liberal Democratic Party, while three are from the New Komeito party and the remaining one is from the New Conservative Party. (Kyodo News)

From http://news.japantoday.com/ 09/25/2003

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Party Plans to Purge Bureaucratic Power

Minshuto (Democratic Party of Japan) will advocate shifting policy-making power to the prime minister by eradicating the current government structure led by bureaucrats and rife with collusion, party sources said. The opposition party's proposals will be included in its policy manifesto when the party pits itself against Junichiro Koizumi and his Liberal Democratic Party in the Lower House election expected in November. A formal announcement on Minshuto's policy outline for government administration will be made later this week. Specifically, a Minshuto in power would form a ``new government'' that includes the party's secretary-general and policy chief in the Cabinet. Minshuto's basic policy will call for a turnaround of the government's basic structure once it is in power. It says bureaucracy-led policy planning under the LDP rule has created a collusive structure among special-interest politicians, bureaucrats landing post-retirement jobs in related industries, and businesses. To break the structure, the No. 1 opposition party seeks unity between the prime minister's office and the ruling party by having the party secretary-general and policy chief in the Cabinet. Key ministers will have offices in the Prime Minister's Official Residence, which will take the initiative in policy planning. In a clear division of roles, government ministries and agencies would faithfully carry out the prime minister's policies, according to the Minshuto plan. The party will also pursue reform in the bureaucracy by using political appointees-politicians and private-sector people at senior ministry and agency posts-and by promoting reform-minded younger officials to key positions. All current administrative vice ministers and other mandarins will be asked to resign once Minshuto is in power. Only those who support the party's policies will be reappointed, the sources said. A conference of politicians acting as senior vice ministers will review bills before they are submitted to the Cabinet, according to the party's plan. That task is currently in the hands of administrative vice ministers, the top bureaucrats in the ministries and agencies. The budget will also be compiled under the prime minister's initiative, according to the Minshuto sources.

From http://www.asahi.com/ 09/25/2003

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SOUTH KOREA: Civil Servants to Get 5-Day Workweek in 2005

The government yesterday decided to exclude April 5, Arbor Day from the list of public holidays from 2005.Civil servants will also work five days a week beginning in 2005, the same as workers in private sectors. These are the main points of the follow-up measures arranged by the government ahead of the introduction of a shorter workweek. From July, next year, government officials will take two Saturdays off in addition to their Sundays. Currently, they take one Saturday off each month. The shorter workweek will be also introduced for government-financed companies with more than 1,000 workers. Policemen, firefighters, prison facility workers, emergency services personnel and soldiers are not to be affected. The government also stated that the exclusion of Arbor Day as a public holiday was decided on to meet international standards about the number of annual paid day leaves for public servants. At present, there are 17 national holidays. ``It is best to take out at least two public holidays now that the five day workweek will be introduced. The other likely candidate is Children's Day on May 5,'' an official at the Ministry said. The five-day workweek bill was passed at the National Assembly late last month in the face of strong opposition from the labor sector. The bill is expected to trigger a major change in the daily lives of the Korean people who reportedly work the longest working hours among advanced countries. (by Sung Tae-kyung)

From The Korea Times 09/03/2003

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Kim Jong-il Re-elected Head of Nat'l Defense Commission

SEOUL -- In what appeared to be a mere formality, North Korea's new parliament on Wednesday re-elected leader Kim Jong-il as chairman of the National Defense Commission, the communist country's seat of power. Announced in urgent reports by all of the North's media outlets, the election had been anticipated since the general elections of country's Supreme People's Assembly in early August. The election of the 60-year-old Kim means that he has the mandate to lead the country for the next five years. The commission controls the North's 1.1-million-member military, the world's fifth largest. The military is the main support base of Kim, who rules the country with an intense personality cult similar to the one for the northern leader's late father. His main state goal is building an army-centered powerful country. North Korea's media, including the Korean Central News Agency (KCNA), said the re-election shows the military's absolute support for the leader." It is also an epoch-making event in which our army and people manifested their determination and belief to build a powerful nation and to fight against all the challenges and (the U.S.) hostile policy against our country," the KCNA said. Kim Jong-il holds no official government title but rules the country unchallenged in his capacity as the commission's chairman. Kim Yong-nam, head of the Presidium of the Supreme People's Assembly, serves as the North's ceremonial head of state. Kim Jong-il was first elected to head the commission in 1993 when his father, Kim Il-sung, was in power. He was re-elected to the post in 1998, four years after the elder Kim died at age 82. Wednesday's re-election is expected to strengthen the northern leader's power base and grant him more power to determine his successor. The candidates to be his heir include his eldest son Jung-nam, 32, and technocrats, including his brother-in-law Jang Song-thaek, 57.The biggest challenge of the new Kim Jong-il era appears to be the North's standoff with the United States over its nuclear weapons program. Six countries -- the two Koreas, the United States, China, Russia and Japan -- held a three-day meeting in Beijing from last Wednesday to defuse the 10-month-old crisis. The talks failed to yield any tangible results except for an agreement to continue dialogue on the issue. The revitalization of the economy is another tough task facing the North's leader. North Korea, which launched a series of economic reforms last July, has had trouble controlling prices and its reforms are in danger. The impoverished country scrapped its socialist rationing system while simultaneously raising wages and prices. In another move last year, the North designated the northwestern city of Sinuiju as a special economic enclave to resuscitate its moribund economy. However, the project faltered after China arrested Yang Bin, the Chinese-Dutch entrepreneur appointed by the North as the enclave's first governor, for bribery, fraud and host of other offenses. The growth national income of the communist country stood at US$17 billion last year, while South Korea's stood at $477 billion, according to the Bank of Korea. The North has relied on outside handouts to feed its 22 million people since the mid-1990s, when a series of floods and other natural disasters devastated its economy. Baek Seung-joo, head of North Korea research operations at the Korean Institute for Defense Analyses, said, "The biggest challenge for Chairman Kim is to resolve the nuclear issue and put the economy back on course."

From http://www.yonhapnews.co.kr/ 09/03/2003

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Big Business and Corruption

On Friday, the Federation of Korean Industries declared that its membership had decided to become "nonpolitical" and prohibit members from giving political money illegally. It made similar promises in February of 1999, however, when it announced a "Corporate Ethics Charter," and as everyone knows, it was shortly thereafter that the relationship between the government then and the Hyundai Group got underway. Similar declarations were made in 2001 and 2002, and now events are such that another is needed. The repetition comes with reason. It's because companies find it hard to rid themselves of ideas about giving bribes to politicians to score an advantage. It's easy to think of the less-than-transparent relationship between business and politics as being a problem with the politicians, but actually it's hard to tell just who's the main culprit and who's the accomplice. Hyundai's secret funds are a living example. Hyundai, on behalf of the government, sent $500 million to North Korea right before the intra-Korean summit of 2000. It gave ruling party figures at least W20 billion ($17 million) right ahead of the National Assembly elections of 2000, and one among them was given a separate W15 billion, according to what the prosecution has announced so far. The conglomerate received tens of trillions of won in financial support of various forms in return. Ultimately they were taking the people's money and dividing it up among themselves. Hyundai surely can't be the exception. When scandals surfaced under previous presidents and involved astronomical amounts of cash, the list of companies involved included most of the country's big business entities. Lately, SK Shipping has been overtaken by a political money scandal. Corruption within the business community is also serious, as recognized in FKI's declaration. The corrupt behavior along the chain of subcontractors and suppliers permeates the whole of our society. It would have to be bad to hear the expression "the root of Korean social corruption is the companies." Declarations that no one believes will have to be made time and time again unless big business stops giving bribes to politicians in return for favors and taking bribes from subcontractors and giving them favors in return as well.

From Digital Chosun 09/05/2003

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Top Ruling Party Officials Resign

Ruling party Secretary-General Lee Sang-soo and floor leader Chung Sye-kyun resigned yesterday ahead of a complete breakdown of the Millennium Democratic Party as sparring factions are poised to cement plans for a new party. Four other top party executives including party spokesman Rep. Moon Seok-ho also submitted their resignations as in-house calls for the resignation of party Chairman Chyung Dai-chul are emerging. The lawmakers excluding Moon are core members of the preparatory panel set up Thursday by the pro-Roh Moo-hyun faction to unilaterally launch a new party. They said they were stepping down in order to take responsibility for the violent meeting of party executives that rocked the MDP Thursday. The crucial meeting fell apart as the pro-Roh faction and its rival the old guard failed to reach a compromise over how to revamp the scandal-ridden party. The Roh loyalists led by Rep. Kim One-ki announced their unilateral push to create a new party by establishing a preparatory committee within the house. As the MDP tears itself apart, the competition among rival factions to secure the party's majority support is heating up, while outside reform-minded political forces are speeding up their alliance-building efforts to create a new party. More conservative mediators are aligning with the old guard to devise ways to restrain the activities of the pro-Roh group, such as by conscripting party memberships for districts participating in the one-sided new party launch, they said. "We are still calling for a new party without disbanding the current MDP and Chairman Chyung promised he will continue to work on this plan," said Rep. Chough Soon-hyung in a telephone conversation with the Korea Herald. "We oppose the preparatory committee and ask for the pro-Roh group to halt any activities regarding party reform until the National Assembly sessions are completed," he added. The preparatory panel held its first working-level meeting yesterday and decided to open district meetings at 16 municipalities and 53 constituency chapters that are expected to join the new party drive within a week after the Chuseok holiday next week. After that, the committee will form district meetings for 174 outside-parliament district chapters by Oct. 11 and hold a convention with 100,000 party members around Oct. 28. The group will then report to the National Election Commission its official establishment of the new party launch committee, which will in turn require their defection from the MDP. The working-level meeting was attended by 33 lawmakers, including Rep. Kim Tae-hong and Rep. Song Seok-chan in the role of mediators. Some 10 more mediators including Rep. Kim Geum-tae, who is currently staging a hunger strike, are expected to join them, the insiders said. "An absolute majority of the MDP will participate in the preparatory panel and we will accelerate our move to recruit figures with extensive work experience," said Kim One-ki. Kim added that the panel will release a policy direction and the specific date of the launch of the new party next Monday. Meanwhile, auxiliary political forces geared toward reform including five former Grand National Party members held a meeting yesterday and decided to launch a new party-promoting organization within this month, in addition to discussing an alliance with the promotional panel of whatever new party may replace or ultimately challenge the MDP. (by Lee Joo-hee)

From http://www.koreaherald.co.kr/ 09/06/2003

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Local Governments Line Up for SEZs

An indicator of how local governments are trying to stimulate their economies emerged Monday as 189 cities, counties, and districts applied to host special regional development zones. The Ministry of Finance and Economy said that a judging committee would be formed early next year to select the final special zones. The special regional development zones are designed so that the government can lift the regulations or support economically or regionally competitive products in the zones. The government said that a special regional development zone law will be formed within this year and the project to promote local economies will begin next year. The government also changed its previous decision to limit the number of special zones near the national capital region, and decided to permit special zones in less-developed metropolitan areas. The final number for the first set of special zones to be selected early next year will be decided after a meeting with related ministries, said a Finance Ministry official. The ministry said that it is currently expecting to award about 40-50 special zones. The zones will facilitate tourism and leisure industries, as well as sectors related to agriculture and forestry, culture, education, environment and medical services. (by Yoon Young-shin)

From Digital Chosun 09/08/2003

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Public Distrust in Government

Lawmakers returning from last week's Chusok holidays in their constituencies around the nation have expressed in unison that restlessness prevails among the people, warning the government against further alienating the public. The tragedy wrought by Typhoon `Maemi' during the nation's most festive holiday season is adding to the disaffection of the public. Setting aside the legislators' views, South Korea is now in a major crisis with serious splits in public opinion on various pending questions such as the dispatch of combat troops to Iraq requested by the United States, the construction of a nuclear waste dump on Wido, a tiny island off Puan County, and the farming market opening, just to name a few. Responsible for the crisis are the government's incompetence, a lack of leadership by President Roh Moo-hyun, the prolonged economic downturn, ceaseless conflicts in the political world, particularly the power struggle in the ruling camp over the issue of founding a new political party by supporters of Roh. In short, public distrust in the Roh administration and the political world has reached a dangerous level. It is imperative that Roh and the government grasp the seriousness of the crisis. Unfortunately, they don't seem able to do so. In particular, it is worried that the issue of sending combat troops to Iraq may create a major confrontation and further divide society. It appears to be hard for the government and the political world to get through the difficult situation even with their concerted efforts. No doubt, the obstinate fight between the president and his opponents to seize political hegemony will only worsen the crisis and further estrange the public. Roh should maintain a sense of urgency and thus take the initiatives to find a way out of the crisis with the full support of the people by persuading them and showing consideration for opposing forces. For this, Roh should win the full cooperation of the National Assembly, especially the opposition Grand National Party (GNP). He should not treat the GNP and his opponents as enemies. They must be recognized as partners with whom he should make joint efforts to solve the difficult questions the nation is now faced with. People ardently want to see a president who uses this crisis as an opportunity.

From http://times.hankooki.com/ 09/15/2003

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BRUNEI: Labour Department Clarifies on Cambodian Amahs

The Labour Department wishes to clarify that, to date, there has been no work passes issued for Cambodians to work as domestic helpers (Amahs) in Brunei. The reason stated by the Department is that no employer has applied to the Department to recruit the Amahs exclusively from Cambodia. However, any applications or request of such nature by prospective employers would have to go though the normal process for consideration, in accordance to the prevailing rules and regulations of the Department. The Department further stated that, with respect to recruitment agencies, so far there is no law formalising their existence. Under the current Labour Law, it is still the employer with the labour license who is made responsible in bringing in the Amah, provided of-course all the necessary requirements and paperwork are complied with. (by Azlan Othman)

From http://www.brunei-online.com/ 09/26/2003

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INDONESIA: House to Allow Independent to Contest Elections

Independent candidates should be allowed to contest local elections provided they have not been affiliated to a political party for four years, the House of Representatives legislation committee says. The proposal was adopted by the committee on Tuesday in revisions to Law No. 22/1999 on regional administrations. The draft revision will be sent to a plenary meeting for further deliberation as will government-sponsored revisions of the law. "We hope the amended law will take effect in October next year, three months after the inauguration of legislative councils," committee chairman Zein Badjeber said Tuesday. Zein, of the United Development Party (PPP) faction, said amendments to the 1999 law aimed to improve the elections of regents and governors and the composition of the legislative councils in regencies and provinces. Patrialis Akbar of the Reform faction said the draft would pave the way for an overhaul of the regional administration law, which many say has given too much power to regional administrations. "Other issues, such as borders between regions and relations between regional administrations and central government will be discussed later," Patrialis said. Earlier, Ferry Mursyidan Baldan of Golkar said legislators were planning to revise all the articles in the law, which was implemented in 2000. There has been concerns among the public over practices of money politics in the election of governors or regents by local legislative councils in several provinces. The practices encourage the elected officials to abuse their powers during their terms in office in order to recover the money they spent to bribe councillors to vote for them. Article 38 of the draft revision states that gubernatorial and regental candidates and their running mates are elected directly by the people. The candidates can be nominated by political parties, a group of parties or individuals, the article says. Names of the candidates shall be submitted to the respective regional general elections commission (KPUD). Individual candidates must enjoy support from a certain number of people and will be decided on by the regional general elections commissions, the draft says. Individuals contesting the elections must not hold positions in or have been affiliated to political parties for at least four years before they register for the election.

From http://www.thejakartapost.com/ 09/03/2003

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Commercial Dispute Center Opened by Minister

Coordinating Minister for the Economy Dorodjatun Kuntjoro-Jakti officially opened on Thursday an independent mediation center which is intended to help businesses reach out-of-court settlements in commercial disputes. Dorodjatun, in his opening speech, blamed commercial disputes among businesspeople for creating uncertainty in the country's business environment, which contributed to the slowdown in the country's economic growth. Many such cases have occurred because the parties misinterpreted the existing laws, he said. "Therefore, the role of a mediation center to settle commercial disputes is important," Dorodjatun said in his speech to inaugurate the Indonesian Mediation Center (PMN). A speedy settlement of commercial disputes is expected to eventually boost the real sector, he asserted. Indonesia has become notorious for its corrupt judicial system, a situation which has frustrated the business community and created legal uncertainty. Denaldy M. Mauna, the chairman of PMN said the center was established in line with an increasing need from the public for a fast, effective and efficient settlement of commercial disputes. "Based on experience, such cases have a better chance for settlements when the parties use the service of mediators," he told The Jakarta Post on Friday. "In mediation, settlement comes from parties involved. What they get is a win-win solution," he said, adding that disputing parties can also save time and money when using the service of mediators. PMN is open to any party who wants to resolve a commercial dispute. It offers mediation services for a wide range of commercial disputes, including wage issues, debt restructuring and big business transactions. Members of PMN are professional mediators, most of whom have been working at the Jakarta Initiative Task Force (JITF), which has received praise for its success in mediating disputes between foreign creditors and the country's private sector. Established in 1998 upon the request of the International Monetary Fund (IMF), JITF was tasked to help restructure huge dollar-dominated debts owed by the private sector to their creditors, mostly outside of Indonesia. JITF has successfully helped restructure over US$20 billion in private debts.

From http://www.thejakartapost.com/ 09/05/2003

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House Lacks Priority in Bill Deliberation

The lack of priority in bill deliberations by the House of Representatives (DPR) has resulted in the endorsement of only a few bills, most of which suffers a number of shortcomings and will thus be subject to further debate, a legal affairs watchdog says. Worse still, the deliberation of bills has become the battle ground for political parties to further their own short-term interests, instead of the interests of the people. The Center for Law and Policy Study (PSHK) said recently in a statement that during the first half of this year, the House was too busy with political wranglings between factions to pursue their own interests, as was evident in the Sukhoi probe and the horse trading that marred the deliberation of the presidential election bill. It also said the lack of priority had thus made the House susceptible to following agendas brought forth by interested parties. PSHK Executive Director Bivitri Susanti said the House had no such thing as a priority list, and instead had only a to-do list for short-term objectives. "It indicates that the House has no integrated view on the improvement of the country's legal system," she said at a seminar here. House Speaker Akbar Tandjung said earlier that due to an obligation to fight for their own constituents, it was impossible for factions and legislators to put aside their political interests in deliberating bills. Bivitri said at times, the House and in particular, the government, were subject to foreign interference in the deliberation of bills. "It is very clear that strong pressure from certain countries and powerful financial organizations were involved in the deliberation of the bills on intellectual property rights and money laundering," she said. The U.S. government had put pressure on Indonesia over the widespread infringement of intellectual property rights. It had also considered imposing economic sanctions on the country if it failed to curb the unchecked piracy. The government also moved quickly to revise Law No. 15/2002 on money laundering to meet the Sept. 30 deadline set by the European Union-backed Financial Action Task Force on Money Laundering. The same holds true for the Antiterrorism Law, which was drafted while the Indonesian government was riding on the coattails of the U.S.-led campaign against terrorism. The House has frequently been under fire for its sluggishness in producing laws, always missing its legislation target since Jan. 2002. Of the targeted 41 bills in the April-July 2003 session, the House only endorsed five bills. Legislators and the government had to work while in recess to meet the deadline for the establishment of the Constitutional Court. Among the bills to be finished during the current session -- from Aug. 15 to Sept. 26 -- are bills on Batam's free trade and open port, agriculture, medical professionals, the protection of overseas workers and sports. Didi Supriyanto, a legislator from the Indonesian Democratic Party of Struggle (PDI Perjuangan) faction, offered the excuse that the poor legislation record was due to the lack of resources at the House's disposal. "Only 20 percent of House members have adequate legislative skills. And some of them work on two or three special committees to deliberate bills," he said, and that 80 percent of legislators of Commission II on legal affairs were also members of several special committees. He also said the House Legislation Body was not provided with enough expert staff to help with the legal drafting, while blaming the government for its tardiness in appointing relevant ministers to deliberate House bills.

From http://www.thejakartapost.com 09/06/2003

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Observers Slam KPU for Lack of Transparency

A number of organizations criticized on Tuesday the General Elections Commission (KPU) for its failure to consult the public in many of its roles. "We respect KPU members who are independent and credible. But they have so far issued a number of questionable policies without the participation of the public," Laode Ida of the Center for Regional Development Studies (PSPK) told a discussion to evaluate the performance of the current KPU since its establishment last year. Criticism also came from the Elections Supervisory Committee (Panwaslu) and the Center for Indonesian Law and Policy Studies (PSHK). KPU is preparing for the direct elections of legislative members and the president next year. Laode said that examples of KPU's poor performance included, traces of a mark-up in the distribution of population census forms, the extension of the population census period and its controversial decision to procure operational cars without a tender. KPU also seems to be unaware of the unrest caused by its proposal to allocate Rp 649 billion (US$76.3 million) of its budget, which comes from taxpayers' money, to construct houses for its members, Laode said. The absence of transparency in KPU, he added, was proven by its failure to make public all information via its website, including the process of some tenders, as claimed by several KPU members. KPU was also considered weak in dealing with political parties, according to Laode, as apparent in its failure to punish parties that held election rallies under the mask of cadre gatherings. KPU had said earlier it could not take action against the parties as such activities could not be considered election campaigns until the parties were declared eligible. The commission will announce eligible parties on Dec, 2. "We have seen KPU emerge as a super and overconfident institution that produces policies without public participation," Laode concluded. He warned KPU that it could no longer rely on the confidence of the public if it maintained its current standards. Saut H. Sirait of Panwaslu and Bivitri Susanti of PSHK shared Laode's view. However, Saut said it was difficult for Panwaslu to discover any violations committed by KPU as the supervisory commission fell under KPU's auspices. He said it was the House of Representatives' jobs to supervise the KPU, but this was not the case due to various political interests. In the absence of the House's control, Saut expected nongovernmental organizations (NGOs), such as PSPK, PSHK, and monitoring agencies including the Independent Committee for Election Monitoring (KIPP) and the Rector Forum, to take initiative. Meanwhile, Bivitri suggested that the NGOs alliance promote public monitoring of KPU, and should file lawsuits against KPU for issuing policies that were not beneficial to the public.

From http://www.thejakartapost.com/ 09/17/2003

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Governors Call for Greater Role in Autonomy

Governors from 29 provinces went ahead with their first working meeting here on Wednesday, in an apparent show of support for the ongoing joint operation against the separatist movement in the province. Security was tight, with the Aceh martial law administration deploying some 1,200 police and military officers, several tanks and three helicopters to guard the three-day event organized by the Indonesia Provincial Administrations Association (APPSI). Minister of Home Affairs Hari Sabarno also attended the meeting that began on Tuesday. "The government's decision to impose martial law on Aceh on May 19, 2003 to destroy separatism here is the best solution, although not a popular one," APPSI chairman and governor of Jakarta Sutiyoso said without elaborating. Aceh Governor Abdullah Puteh noted in his speech that the tight measures were "the Aceh military administration's way to welcome the guests." During the meeting, the governors collected some Rp 15 billion (US$1.7 million) in donations for Aceh's education budget. "We'll give a priority to education, either to rebuild schools, to procure stationary or to pay for the school fees," Sutiyoso told reporters. Hundreds of school buildings in the province were burnt down shortly after martial law was declared. Puteh welcomed the donation, saying that over 15,000 students who had lost their parents in the conflict could not afford to pay for their education. He said that the funds would be used to rebuild some schools. "Each school building will be named after a province that donated the money," Puteh said, adding that some 549 out of 607 schools had been rebuilt. Sutiyoso said that the association's first meeting in conflict-torn Aceh, would be followed by its second meeting in Maluku, which is just now recovering from a bloody religious conflict in recent years. Meanwhile, the meeting has produced several recommendations, including a recommendation that the central government revise Law No. 22/1999 on regional autonomy. "The revision should not be aimed at withdrawing autonomy in substantial matters," Sutiyoso cautioned. Association members bemoaned the autonomy law, which they said had obscured their roles. Following the issuance of Law No. 22/1999 on regional autonomy, the central government tends to deal directly with regency and municipal administrations, bypassing provincial administrations, leaving the latter in the dark about many policies or interactions between the central government and regency and municipal administrations. The same is true concerning the flow of funds from the central government to regencies and municipalities. The association has therefore demanded that the government draw a clear guidance on their roles and status. Andi Mallarangeng, a member of APPSI's board of advisers, told reporters that the demand for a revision of the autonomy law was understandable. "Since the law took effect, governors feel they have been bypassed," he said, adding that there must be a way to synchronize the distribution of power between the central government and regional administrations. (By Nani Farida)

From http://www.thejakartapost.com/ 09/25/2003

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Laos and Japan Share Local Administration' Role

"Local administration' s role in the Lao PDR and Japan at present and in the future" was the title of the technical seminar held here on 24 September. An opening ceremony of the seminar, the first of its kind, was co-chaired by Dr. Phankham Philavanh, Deputy Minister to the Prime Minister' s Office, in charge of the administration and civil service and Ambassador of Japan to Laos H.E. Mr. Hashimoto Itsuo. The seminar is aimed at sharing experiences of the state administration at local level in the Lao PDR and Japan. The seminar presented previous development of the state administration and the trend of state administration development in the future. Participants heard experiences of the state administration at local level that presented by a Japanese lecturer Prof. Tamura from Niigata University, and Lao lecturer Mr. Khammoun Viphongsay, Deputy Director of the Department of Administration and Civil Service. Hosted by the Department of Administration and Civil Service under the Prime Minister' s Office in conjunction with Japan' s Local Administration Agency, the seminar was attended by representatives from local administrations (Deputy Governors, and Chiefs of districts), line ministries, state organisations at the central level and local administration's representatives of Japan. The Local Administration Agency of Japan has launched the project of technical seminar in ASEAN member countries since 1995 under the theme "ASEAN-Regional Local Administration Forum". The Local Administration Agency of Japan was set up in 1988 under the guidance of the Ministry of Public Management, Home Affairs, Posts and Telecommunication and its headquarters is located in Tokyo, in addition to other branches in New York, London, Singapore, Beijing, Sidney, Paris and Soul. The Local Administration Agency' s branch in Singapore is responsible for its relations and cooperation with ASEAN member countries, particularly Cambodia, Laos and Vietnam. Item ends

From http://www.kplnet.net/ 09/24/2003

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BURMA: Measures for Promotion of Cooperative Functions Coordinated

The Central Cooperative Society and cooperative syndicates met to promote their functions at the Ministry of Cooperatives on Bogyoke Aung San Street yesterday afternoon. Present on the occasion were Minister for Cooperatives Maj-Gen Htay Oo, departmental heads, chairmen and members of the Central Cooperative Society and the cooperative syndicates, and officials. At the meeting, the minister delivered a speech, saying that the ministry is taking systematic measures for elevating the cooperative role, discharging of cooperative businesses which provide the State, successful implementation of socio-economy tasks in the interest of the State and the people, and promotion of socio-economy in cooperation with international cooperative societies. The cooperative syndicates including the central cooperative society are to make concerted efforts in order to improve the cooperative image through cooperation, he added. Officials of the cooperative syndicates reported on organizational set-up of the syndicates and arrangements for boosting production. Afterwards, the minister made concluding remarks.

From http://www3.itu.int/ 2003/09/16

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Mass Rally in Support of Prime Minister's Clarification on Seven-Stage Roadmap Held in Mandalay

A mass rally, organized by the Union Solidarity and Development Association, was held in support of the Prime Minister's clarification on the seven policies and programmes of the State (roadmap) in Bahtoo Sports Ground, Chan Aye Thazan Township, Mandalay Division this morning. Present on the occasion were CEC members of USDA, members of USDA in Mandalay Division, Myanmar Maternal and Child Welfare Association, Myanmar National Working Committee for Women's Affairs, Mandalay Division War Veterans Organization, Red Cross Society, Auxiliary Fire Brigade, Myanmar Music Asiayon, Myanmar Thabin Asiayon, Myanmar Floriculturists Association, Myanmar Medical Society (Mandalay), Mandalay Photographers Association, Traditional Medicine Practitioners Association, Hoteliers and Tour Operators Association, Industrialists Association, Myanmar Rice and Paddy Merchants Association, Video Association, Mandalay Division All Bus Lines Control, trainee nurses, service personnel, farmers and local people totalling over 15,500 of Chanayethazan, Pyigyitagun, Amarapura, Maha Aungmyay, Chanmyathazi, Aungmyay Thazan and Patheingyi Townships.

From http://www3.itu.int/ 2003/09/23

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PHILLIPINES: Healing the Fracture

THE most pressing and critical problem the country faces is the deep fracture in the country's politics. The fracture is so deep that no rules, not even Constitutional ones, are respected. The struggle is so fierce that respect for the country's institutions be damned. The Supreme Court, the Armed Forces, the Philippine National Police, the NBI, the entire judicial system, the Senate, the Bangko Sentral, the Ombudsman, etc. have been used as instruments or targets of this struggle, and all have been diminished by it. Both the economy and the war against terrorism have been put at risk because of this fracture. Investors have been holding off, fearful of political instability and that rules will once again be changed. The government seems distracted, a fact that criminal elements exploited when they pulled off a daring robbery at the Citibank headquarters in Makati. The atmosphere is so heated that some elements in the opposition can't even wait for elections in a few months. They are demanding snap elections or the resignation of President Arroyo. Meanwhile, the administration has been accusing opposition figures like Horacio "Boy" Morales of plotting destabilization moves on the basis of intelligence reports. Perhaps realizing that the political fracture is threatening to bring the whole country down (and cause grave embarrassment to her when she faces US President George W. Bush in October), President Arroyo has called for a political summit. The political summit is a good idea to try to reduce tensions between her government and the opposition. But for the summit to succeed, she must categorically disavow any ambitions for 2004. Otherwise, the summit will be seen as political gimmickry, meant to boost her popularity in the polls rather than a genuine attempt at reconciliation with the opposition. She must also try to reach out to the more moderate members of the opposition, such as Sen. Edgardo Angara and Sen. Nene Pimentel, and demonstrate, not merely through empty gestures, that she's willing to work with them. She must win them as allies in defending the Constitutional order and in pushing through much needed reform bills. It may even be a good idea to offer some form of "coalition government" to the opposition, although some die-hards in her camp may object strenuously. A coalition government may take the form of some positions in the Cabinet for the opposition and a reasonable understanding about power sharing in the Senate and the House. At the very least, the opposition's inputs should be solicited, say, in naming the successor to former defense secretary Angelo Reyes. The hard-liners in her camp may cry that a coalition government would be a capitulation to the opposition. But it's important at this point for President Arroyo to isolate the more extreme members of the opposition-those who are trying to destroy her at all costs. A coalition government would also help reduce the perception of political instability and calm investors' fears. By having a coalition government preside over the elections in May 2004, there is a better than even chance that the opposition will accept the results of the coming elections, and deny a chance for the "extra-Constitutionalists" to foment disorder after the elections. A coalition government would also be a good first attempt at bringing back party politics into government. I have this theory that the country's politics is being hijacked by extremists on both sides and they are usually the people with no political accountabilities-the NGOs, the Church, relatives, dealmakers, including shadowy lawyers and political investors. The politicians who are causing trouble to the administration are less a product of party politics than media hype. They are usually lone rangers who eschew party politics and discipline. If President Arroyo's husband has assumed a political role than just being married to the President, it's because the party system in the country is so weak. President Arroyo couldn't rely on Lakas where she's the nominal chairperson because her own party's president, Vice President Teofisto Guingona, opposes her on many policies. Also, because there's no government financing for political parties, it's easy to look the other way while campaign contributions are raised in your behalf. Healing the fracture is the most urgent and important task of President Arroyo. She could be part of the problem, or be part of the solution. She has shown, when she gave the surprise announcement in Baguio in December 2002, renouncing her option to run, that she's capable of rising above self-interest and embracing the demands of history. How she handles the political summit will determine whether the political weather will turn stormier or not.

From http://www.manilatimes.net/ 09/02/2003

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National Governance Center Launched in Manila

The Manila Center of the Hills National Governance Centers located at the Asian Institute of Management (AIM) was launched today in Makati. Present at the launching ceremonies were former U.S. Securities and Exchange Commission chairman and founder of the Hills Program on Governance at the Center for Strategic International Studies (CSIS), Roderick M. Hills, AIM President Robert De Ocampo, World Bank East Asia Pacific Region Chief Economist Homi Kharas and Philippines Country Director Robert Vance Pulley. Lilia Bautista, Chair of the Securities and Exchange Commission, was the guest speaker. The Hills Governance Centers seek to promote good governance across the private, public, and civic sectors by addressing institutional sources of corruption and promoting transparency and accountability within and among those sectors. Several centers are planned to be established in East Asia by the Hills Program on Governance, in partnership with the World Bank. "The World Bank welcomes this partnership with the Hills Program and fully supports these efforts to improve governance across East Asia - an issue of key importance to policymakers and public alike. We look forward to seeing the Program achieve its goals through its emphasis on rigorous research and analysis, dissemination of results, facilitating regional dialogue, advocating in-country policy dialogue, and developing educational tools," said World Bank Vice President for East Asia and the Pacific Region, Mr. Jemal-ud-din Kassum. Robert Vance Pulley, World Bank Country Director for the Philippines, added, "Corruption undermines investor confidence and therefore adversely affects a country's economic performance. The Hills Governance Center in Manila is another indication of the widening initiative by the Philippines to pursue governance reforms, as shown by the considerable effort already under way both in the public and in the private sectors. As we all know, governance is one of the four pillars of the Philippine Medium-Term Development Plan. This Center therefore supports a national priority." The Centers' short-term objective is to focus on corporate governance challenges, and norms governing the interactions between private sector actors and public sector agencies. With a target audience of corporate directors, executives, accountants, and auditors, the Center will seek to facilitate research and dialogues - through national websites and training programs - in order to improve governance practices, including business ethics, in various countries; identify the costs of misgovernance; and develop benchmarks for corporate governance reform. Later on, the Centers' focus will expand to include broader governance issues - including public sector governance - and will be aimed at government officials, business and public policy graduate school students, and possibly high school students. The Manila Center's Advisory Board is chaired by Justice Florentino Feliciano. Washington Sycip, founder of SGV & Co., Roberto de Ocampo, President of AIM, Juan "Johnny" Santos, Chair and CEO of Nestle Philippines, Vicky Garchitorena, President of the Ayala Foundation, Cesar Virata, Former Prime Minster, and Nieves Confessor, Dean of AIM are the Board members. The Advisory Board is tasked with setting the strategic direction of the Center and overseeing the work of the Center. Homi Kharas, World Bank Chief Economist for the East Asia Region, said, "Each center should recognize the importance of accountability, transparency, locality, and mutuality. I want to stress that we do not believe that corporate governance rules can simply be imported from one country to another. Therefore, the Centers need to take into account how cultural traditions and values shape institutions and rules." National Governance CenterGuiding Principles General Principles Accountability- Good governance requires the absence of corruption and the presence of strong and effectively enforced internal checks and balances. Transparency - Effective governance structures are best monitored in an environment where existing conditions, decisions, and actions are made visible and understandable to all market participants. Locality- Lasting governance solutions are not imposed from outside but rather built from within countries and their businesses/ governments, taking into account how cultural traditions and values shape institutions and rules. Mutuality - No governance problem can be solved in isolation; the negative effects of poor governance in one sector (private, public, civic) are shared by all other sectors. Functional Principles Institutional Reform- Improving governance practices by strengthening systems of accountability and removing institutional incentives for misgovernance, enables improved professional ethics in every sector. Capacity Building - The training of executives, government officials, and accountants results in active incorporation of best practices into institutions.

From http://web.worldbank.org/ 09/04/2003

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Leader Pushes for Security Council Seat

President Gloria Arroyo vowed yesterday to press a Philippine bid to become a non-permanent member of the United Nations Security Council when she travels to New York later this month. Arroyo is to fly to the U.S. city on September 25 to address the 56th session of the assembly and meet with U.N. Secretary General Kofi Annan, after which she is due in the Vatican and Paris. Yesterday, Arroyo debunked local press reports that Manila's bid for a seat in the security council could be jeopardized by her government's close association to the United States, which this year elevated Manila to a major non-NATO ally. "The Philippines has been aiming for a seat at the U.N. Security Council for some time now and this has nothing to do with our strategic partnership with the United States," Arroyo said. "It is erroneous and unfair to say that our support for the U.S. campaign versus terrorism would hamper our bid," she said. She noted that the U.N. had passed a resolution supporting a campaign against terrorism shortly after the September 11 terrorist attacks in the United States in 2001. "Our strategic partnership with the U.S. is part of our involvement in global security. The U.N. itself is a non-partisan body," Arroyo said. "These are factors that support, rather than impair our bid for a UN Security Council seat."

From http://www.etaiwannews.com 09/10/2003

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Country Also Needs Strong Institutions

The country needs strong government institutions, not merely a strong leader, Malaca?ang said on Sunday. Presidential spokesman Ignacio Bunye, in a rejoinder to an observation made by Sen. Robert Barbers, said it was important to strengthen institutions of the government that provide basic services to the people. If the institutions were not strong, the perceived strengths of people in the government would not amount to anything. "I think we should modify a little the observation of Senator Barbers-what we really need are strong institutions. As the President said, we need a strong republic, we have to strengthen our institution that would push for the development programs of the government," he said. "It would be better if we concentrated more on institutional development rather than personal or individual development." Over the weekend, Barbers said the country needed a strong "benevolent" leader like the late dictator Ferdinand Marcos to address the perceived instability of the country. Barbers said except for the declaration of martial law, the traits of the late strongman-backed by a team of competent officials and others with patriotic idealism-are needed by the country. During the Marcos regime, Filipinos experienced a cultural revolution and the country became a leader in agricultural technology, economic viability and tourism, Barbers noted. Even as President Arroyo is sincere in instituting reforms in government, her administration is still beset by graft, corruption and too much politicking, he added. However, like the President, Barbers called on members of the political opposition to set aside politics and work to carry out programs that would help Filipinos as a whole. The Arroyo administration has been at the receiving end of a series of controversies like the July 27 failed mutiny of disgruntled soldiers, the escape from detention of the Indonesian terrorist Fathur Rohman al-Ghozi, the continued reports of destabilization plots and the allegations of corruption against the President's husband, Jose Miguel Arroyo.

From http://www.manilatimes.net/national/ 09/22/2003

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President Seeks Divine Guidance for '04 Poll Bid

Despite President Arroyo's promise not to run in 2004, Malaca?ang on Monday said she is now having doubts about her ironclad stance. Presidential spokesman Ignacio Bunye revealed that President Arroyo is seeking "divine guidance" on whether she should live up to her December 30, 2002, promise. "The President is mulling this [decision] very seriously. She is praying very hard for guidance," Bunye said. He said the President has been receiving encouragement to seek a full six-year term not only from members of the Lakas-Christian and Muslim Democrats (Lakas-CMD) but from other sectors, including some civil-society and business groups. "On this matter we respect the President's prerogative to think things over. Whatever decision she will make, I am sure it will be for the benefit of our country and our countrymen," Bunye said at his regular press briefing. On December 30, 2002, President Arroyo declared she would rather concentrate on pushing for reforms during her remaining term than engage in politics. She said she would no longer run to make it easier for her to make difficult decisions. Until the middle of this year, Malaca?ang remained unruffled by the "clamor" for the President to reconsider her decision. Observers note, however, that it is starting to shift from its earlier stand as May 2004 approaches. "Let us just wait for the President to decide. All we can say right now is that she is thinking very carefully about this matter," Bunye said. Other world leaders have been encouraging President Arroyo to reconsider her decision.

From http://www.manilatimes.net/ 09/23/2003

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THAILAND: Govt Faces New Accusation

The Democrat party has accused the government of planning to misuse 1.55 billion baht of the state budget to build broadcasting towers to accommodate its pre-election ``air war'' against the opposition. Deputy party spokesman Narit Khamnurak said the Local Administration Promotion Department had added a project to build 36,000 broadcasting towers nationwide costing 1.55 billion baht in its 2004 budget request without explaining why they were so badly needed. Checks have revealed the department would have each of the 400 constituency MPs name 70 villages in his or her constituency as the sites for the 28,000 broadcasting towers which would have to be constructed by next year. Mr Narit said he doubted the government would allow opposition MPs to propose the sites for the other 8,000 towers. He said some members of the budget scrutiny committee had told him that some government MPs had heavily lobbied the panel for its endorsement by claiming the towers would be useful for the Election Commission in promoting clean and fair elections. Mr Narit said he does not believe the government would allow the towers to be used for purposes other than to publicise its policies and achievements. ``The government has a hidden agenda. This is its real air war. It wants to control the grassroots media and use them for its own political gain,'' he said. The government was already in firm control of state-run radio stations as statistics show that Radio Thailand had broadcast 3,100 news stories about the government in 2002 and only 272 about the opposition, he said. Ekkaparb Polseu, a Thai Rak Thai MP and spokesman of the budget scrutiny panel, said the towers were only being built at the poll agency's request in villages that still did not have them.

From http://search.bangkokpost.co.th/ 2003/09/02

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BANGLADAD: False Statement Sayedee Unseated from Parliament

The High Court on Sunday unseated Maulana Delwar Hossain Sayedee of Jamaat from Parliament for submission of false statement of his election expenses. The High Court found him guilty of providing false statement of sources of fund to meet his election expenses in the return submitted to the Election Commission. The verdict came after nearly two years?of hearing by the bench designated for dealing with cases of election disputes. Justice Mohammad Iman Ali of the one member bench declared void the election of Maulana Sayedee election from Pirojpur. The valididty of election of Maulana Sayedee was challenged by his nearest rival Sudangshu Shekhar Halder of Awami League. The court, however, turned down Halder plea for declaring him elected for he polled the next highest votes in the October 1, 2001 general elections. He had lost to Maulana Sayedee by a wide margin of 33,337 votes from Pirojpur-1 constituency. During the long hearing the court found Maulana Sayedee guilty on several counts. He suppressed the sources of election fund and spent more money than prescribed by law in electioneering. He did not even submit affidavit along with the return to the Election Commission. All these tantamount violation of the rules of the Representation of Peoples Order, 1972. The verdict of the court will now be communicated to the Election Commission for taking necessary action. Maulana Sayedee is likely to move the Supreme Court against the verdict. This is for the first time the High Court dealing with cases of election disputes unseated a member of Parliament. Earlier, all election disputes dealt with by the Election Tribunals that hardly could dispose of any case during the whole tenure of Parliament. Sudangshu Shekhar Halder, a veteran lawyer and former MP, appeared before the court for his own case while Barrister Abdur Razzak defended Maulana Sayedee.

From http://nation.ittefaq.com/ 09/15/2003

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BHUTAN: National Judicial Commission Established

His Majesty the King, through a royal kasho issued on August 30, commanded the establishment of a national judicial commission to strengthen the judiciary system of Bhutan. The chief justice of Bhutan was appointed chairman of the commission. The other members are two justices of the high court, the head of the office of legal affairs, and the secretary of the national assembly. His Majesty commanded that the members must discharge their responsibilities with the utmost sincerity and dedication. The establishment of the national judicial commission, as required by the civil and criminal procedure code of Bhutan 2001, is seen as a historic move to professionalise and strengthen the system of appointing, censuring, suspending, or removing judges of the high court and dzongkhag courts. "It involves the participation of all three branches of the state in making recommendations," explained the chief justice, Lyonpo Sonam Tobgye. "It will greatly increase the responsibility and accountability of the judges." The national judicial commission is an integral component for the preservation of the independence of the judiciary, said the chief justice.

From http://www.kuenselonline.com/ 09/08/2003

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INDIA: Human Resources Minister Resigns Over Decision on Ayodhya Demolition Prosecution

Ignoring pleas of party leaders including Deputy Prime Minister L.K. Advani, HRD Minister Murli Manohar Joshi on Friday resigned from the Union Cabinet shortly after a special court in Rae Barelli pronounced that charges would be framed against him and six others in the Babri masjid demolition case. "I have sent my resignation to the Prime Minister. I had said yesterday that I will resign if charges are framed against me", Joshi, who looked a bit upset, said at his residence. Joshi's action came even as Advani and BJP President M Venkaiah Naidu spoke to him over phone and told him there was no need for him to resign. "I congratulated Advaniji", Joshi said when asked about the court order in which the Deputy Prime Minister was the lone accused to be discharged. Asked as to how the court had decided to frame charges against him and six others but spared Advani, the HRD Minister said that he would not comment on the wisdom of the court. To a question as to what he would do if the Prime Minister rejected his resignation, Joshi said so far he had not received any response from the Prime Minister. "I am neither happy nor sad", he said when asked whether the verdict had saddened him. To a question whether the Ayodhya issue would be the party's main plank in the coming elections, Joshi merely said the party would decide on it in the coming days.

From http://www.expressindia.com/ 09/19/2003

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SRILANDA: Civil Servant Files Rights Plea in SC Challenge Appointments of District Secretaries

A senior civil servant has filed a Fundamental Rights plea in the Supreme Court challenging the appointments of District Secretaries to 8 districts. The petitioner also claims a sum of Rs. 500,000 as damages. In this petition, the petitioner Anton Tissera Warnakulasuriya of the Sri Lanka Administrative Service has cited the Prime Minister and Minister of Policy Development Ranil Wickremesinghe, 31 Cabinet Ministers and the Attorney General as respondents. The petitioner, among other things, states that he had served in the Sri Lanka Administrative Service and held many important positions in various capacities including the Secretary Provincial Public Service Commission of the North Western Province. He further states that the predecessor of the present Acting Secretary of Ministry of Home Affairs and Provincial Councils K. P. M. Speldewinde had called for applications for the post of Divisional Secretary or Government Agent for the Districts of Hambantota, Kegalle and Matale in a paper advertisement published in the "Dinamina" of September 17,2002. The petitioner had submitted an application and was called for an interview by a fax, dated November 15,2002.Later the said interview was held on November 21, 2002 and the petitioner faced the interview with few others. The petitioner also states that seniority in service, Training and Educational Qualifications and personality of the candidates were among the criteria adopted for the interview. Later, the petitioner received a fax dated April 10, 2003, requesting him to nominate six districts where he wishes to serve in the order of priority. The petitioner nominated Trincomalee, Kegalle, Kurunegala, Polonnaruwa, Moneragala and the Galle districts as his priorities and expected that he be called for an interview for the post. However, later 1-32 respondents had appointed 23-42 respondents either as Divisional Secretaries or GAs to the Districts of Hambantota, Trincomalee, Kurunegala, Matale, Kegalle, Ampara, Polonnaruwa and Anuradhapura The petitioner further states that out of eight appointments, 37-42 respondents are junior in service to the petitioner and that the decisions by 1-32 respondents to make said appointments are irregular, arbitrary and unreasonable and violated the petitioner's Fundamental Rights in terms of the Section 12 (1) of the Constitution. Therefore, he prayed that the petition be granted leave to proceed. He also urged the court to state that his Fundamental Rights were violated by the action and to declare the appointments of 35-42 respondents as null and void. He further prayed that 1-34 respondents be directed to hold afresh interview for the post and claims a sum of Rs 500,000 as damages. (By Indeewara Thilakarathne)

From http://www.dailynews.lk/ 09/01/2003

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Stress on Strengthening Parliamentary Democracy

The second Commonwealth Parliamentary Association (CPA) Asia Region Conference concluded in Colombo yesterday further emphasising on strengthening the Parliamentary democracy. Addressing the concluding session at the Hilton Hotel, Colombo, Speaker Joseph Michael Perera said the conference has played an important role in discussing strengthening the Parliamentary democracy system in the Asian region. " Many important matters were discussed and decisions were reached at the Executive Committee on August 30, "the Speaker added. The conference commenced on August 31 and was held under the theme 'Strengthening democracy in South Asia'. While the main plenary session discussed Strengthening democracy in the Asia Region, the panel sessions focused on Strengthening the Committee System, Parliamentary Sovereignty and Judicial Independence, Increasing the participation of women in South Asian Politics and Technology and its use in Parliament. Referring to the topics in discussion, the Speaker said: "I am sure the ideas and experiences shared will be of much use for Parliamentarians in their Parliamentary activities." The Speaker requested the Regional Secretariat to distribute the report of the Conference among Parliamentarians of the region. Deputy Speaker of Lok Sabha Shri P.M. Sayeed and Secretary General of Lok Sabha and Secretary CPA Asia Region G.C. Malhotra also spoke. (By Bharatha Malawaraarachchi)

From http://www.dailynews.lk/ 09/04/2003

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MALDIVES: President Establishes "Telecommunications Authority of Maldives"

President Maumoon Abdul Gayoom has established the "Telecommunications Authority of Maldives", and signed the decree, under the powers vested in him by Article 42 of the Constitution of the Maldives, to authorise the implementation of the "Maldives Telecommunications Regulation 2003", which was compiled by the Authority. The "Telecommunications Authority of Maldives" was established on 4 September. The new Authority was created because it was deemed necessary, after due deliberations in the Cabinet, that a separate entity should be set up as a regulatory body and also to promote an open and competitive operating environment in the telecommunications sector and to encourage and accelerate the development of the sector. The "Telecommunications Authority of Maldives" will function under the Ministry of Communication, Science and Technology, and will be administered by a Regulatory Board. The principal objective of the Authority is to promote the best interests of the people of the Maldives, and to create an environment conducive to investment, by ensuring that telecommunications services are accessible to all the people in the Maldives, and are supplied as efficiently and economically as practicable and at performance standards that reasonably meet the social and commercial needs of the Maldives.

From http://www.haveeru.com.mv/ 09/07/2003

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The Commissioner of Elections Announces the Names of Candidates Who Meet the Qualifications Stipulated in Article 34 of the Constitution for Election as President

The Commissioner of Elections on Tuesday announced the names of the candidates who satisfied the qualifications stipulated in Article 34 of the Constitution for election as President. Prior to Tuesday's announcement, the credentials of those who had lodged nomination papers to become candidates for the Presidential election had been checked against official records on the advice of the Advisory Committee constituted by the Commissioner as provided for in Article 5(a) of Law 1/98 (Law on Presidential Elections). After the verification of the information provided in the nomination papers, and on the advice of the Advisory Committee, the Commissioner has determined that the following applicants satisfy the qualifications stipulated in Article 34 of the Constitution for persons who wish to become prospective candidates. Maumoon Abdul Gayoom of Machchangolhi Kinbigasdhoshuge Abdul Ghafoor Hussain of Maafannu Iramaabageechaa Mohamed Shareef of Galolhu Winterhouse Nazeer Ahmed Jamaal of Machchangolhi Thinadhooge (Second Floor)

From http://www.haveeru.com.mv/ 09/24/2003

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NEPAL: Govt Committed to Health Sector

KIRTIPUR, Sept 18 - Health Minister and Pro Chancellor of BPKoirala Institute of Health Sciences Kamal Thapa has said that the government is fully committed to carry out health services to the people and produce skilled manpower in the health sector. Speaking from the chair of the 24th council meeting of the Institute here, the other day, he said there should be united efforts of government and the private sector medical colleges to carry out health education to the general public. He informed that the institute has been providing special facility including the reservation to the Dalits, ethnic communities and women in health education in accordance with the policy of the government. Thapa said that the government would help in the work of providing health services through insurance to the people of the rural areas. He said that the Institute would provide health services to the people of all the 16 districts of the Eastern Development Region and the government has adopted a policy of providing health services to the people of all the five development region. Vice Chancellor Prof Shekhar Koirala presenting progress report of the Institute said the Institute has the policy of producing skilled manpower, provide quality services to the people of rural community and resolve health related problem of the country. Rector of the Institute Dr Sudhanshu Sharma Khanal, Director Dr Narayan Kumar, Registrar Dr Bhogendra Prasad Upadhyaya presented papers on concept of health education, social health insurance programme and income and expenditure of the Institute respectively.

From http://www.kantipuronline.com/ 09/18/2003

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Dr. Sainju Appointed Vice Chairman of PAF

The government has appointed Dr. Mohan Man Sainju to the position of vice chairman of the Board of Directors of Poverty Alleviation Fund. A press release by the National Planning Commission Secretariat Monday states that the appointment is in accord with Poverty Alleviation Fund Ordinance 2003. Dr. Sainju, a renowned economist has also served as the vice chairman of National Planning Commission from 1982-1988.br>

From http://www.kantipuronline.com/ 09/22/2003

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AFGHANISTAN: Afghan Ministry to Aid Women

A new department has been established within the Afghan Commerce Ministry to help women set up businesses, the BBC reported on 1 September. "Nearly two years after the fall of the Taliban, most Afghan women, who faced draconian restrictions on their every move, have seen little or no improvement in their lives," according to the report. "While some girls are attending schools and some women have been able to go back to work, most still face discrimination in their everyday lives." The new government department aims to encourage women to enter the world of commerce. It will offer women small loans, teach them basic business skills, and help them to exhibit their handicrafts. But while many countries have expressed support, so far the department has received very little funding. TG

From http://www.rferl.org/ 09/03/2003

AZERBAIJAN: Azerbaijani Servicemen Are to Take Part in NATO Actions

A working group "Peace and information exchange on technical plan and equipment modernization programs" is to be held between September 2 and 4 in the capital of Bulgaria, Sophia within the frames of he NATO Partnership for Peace Program. The courses on "Information exchange and release system" within the "ANT (PRIME)" framework are to be held on September 2-5 in Brussels, Belgium, and the Conference of conceptional planning of training "Combined Endeavor - 2004" in Berlin, Germany, press-release of the Ministry of Defense reads. According to the individual program, signed between NATO and the Republic of Azerbaijan, representatives of Armed Forces of Azerbaijan are to take part in these actions.

From http://www.bakutoday.net/ 09/02/2003

IRAQ: Council Picks a Cabinet to Run Key State Affairs

BAGHDAD - The Iraqi Governing Council appointed a 25-member cabinet today to begin taking over day-to-day control of the government, as tension grew between American officials and the council over steps taken to protect its members against assassination. The formation of an Iraqi cabinet is regarded an important first step in the effort to transfer authority to the Iraqis from the Americans, who have been intimately involved in running the country since Saddam Hussein's government collapsed in April. The Iraqi ministers appointed today are to take over important portfolios like foreign affairs, finance, internal security and oil. The group largely reflects the ethnic and religious makeup of the country, with a majority of cabinet posts going to Shiite Muslims, the largest religious group. "The Iraqis are going take over these ministries and run them," said Ahmad Chalabi, the council chairman. "These are very independent people, and they are going to start issuing orders and conducting the affairs of state." Yet even as the Iraqi officials began taking over the government, they clashed with American administrators over the issue of security. In a meeting today with L. Paul Bremer III, the top civilian administrator for the occupying forces, council members complained that the Americans were failing to adequately protect them. The complaints followed three car bombings in August, which killed well over 100 people. Some who attended the meeting said the Iraqi council members told Mr. Bremer that they had become obvious targets for assassination attempts and that some of them were not being properly protected. One council member warned that several of his colleagues could be killed. "The Governing Council could become a morgue," the council member told Mr. Bremer, said two people with knowledge of the meeting. The meeting of council members and senior American officials was called to discuss security issues - for Iraq's sacred sites and for the country as a whole, as well as for the council members. Even in the aftermath of the deadly car bombings, some council members said, they are being left to protect themselves. Officials of the occupying powers here have said they are providing security to any council member who has requested it. But some members say the Americans have ignored their requests and left them dangerously exposed. In a recent interview, Charles Heatley, a spokesman here for the Coalition Provisional Authority, the occupying powers' civilian administration, said any council member who asked for security had been provided with it. Aides to Mr. Chalabi said today that they had been sending their own bodyguards to jittery council members who did not have protection. Efforts to reach Mr. Heatley tonight were unsuccessful. Dr. Raja Habib Khuzai, a Governing Council member, said today that she had been pleading for days with American officials to provide her with cars and bodyguards, but that so far, they had failed to respond. In an interview, Dr. Khuzai said her brother had volunteered to become her bodyguard, along with three other men who have no training. She said she was paying them out of her own pocket. Dr. Khuzai said the Americans had provided her with bodyguards several weeks ago, but had later taken them away. Lately, she said, she has been asking the Americans to train her guards if they cannot provide her with any of their own. "They keep telling me they will train my men, but I have given them their names on 10 occasions, and they told me they lost the list," Dr. Khuzai said. "We are targets, you know. We could be next. I told the Americans I am very scared." In the interview, Dr. Khuzai said she was making the two-hour drive to Baghdad from her home in Diwaniya in a car borrowed from the hospital where she used to be the director. American officials said they had recently taken delivery on a number of vehicles that they intended to give to council members. But Dr. Khuzai said the cars had not yet been delivered because they did not have license plates. She said she had jokingly told a senior American administrator to go to the "thieves market," a local bazaar known for its stolen goods, to buy a few license plates there. Dr. Khuzai said she had been given security for her home by Iraqi security officials, four Iraqi men who had received one day each of training. Her requests for additional security, she said, have gone ignored. "The guards sleep most of the time," she said. Other council members have expressed concern that they could be targets of assassination. Aides to Mr. Chalabi said, for instance, that they had recently apprehended a man near Mr. Chalabi's compound who was carrying a rocket launcher. The man, they said, turned out to be a member of the fedayeen, the militia sent by Mr. Hussein during the war to carry out guerrilla attacks against American forces. Among the other issues discussed at the meeting today was the possible formation of a large Iraqi militia to help bring order to the country and to hunt down die-hard supporters of Mr. Hussein's government. In addition, a committee to work on security issues was formed. Iraqi officials said today that they would probably wait until Wednesday to make the official announcement of the formation of the cabinet, after the completion of the funeral for Ayatollah Muhammad Bakr al-Hakim, who was killed in the car bombing on Friday. In addition to the 13 Shiites, the cabinet is composed of 5 Sunni Muslims, 5 Kurds, a Turkmen and a Christian. The most important ministries were distributed among the country's largest ethnic and religious groups. Hoshyar Zebari, a Kurd, was named foreign minister; Kamel Kilani, a Sunni Muslim Arab, was appointed finance minister; Nouri Badran, a Shiite Muslim, is the new interior minister; and Dr. Ibrahim Bahr al-Uloum, a Shiite and the son of an influential cleric who sits on the Governing Council, was named oil minister. The Information Ministry, famous for its distortions under Mr. Hussein's leadership, was abolished, while the council created a new Ministry for Human Rights. Also today, the Arabic-language television station Al Jazeera broadcast an audiotape it said was from Mr. Hussein, in which he denied responsibility for the bombing in Najaf. The attack killed more than 80 people, including Ayatollah Hakim. "Many of you may have heard the snakes hissing, the servants of the invaders, occupiers, infidels, and how they have managed to accuse the followers of Saddam Hussein of responsibility for the attack on al-Hakim without any evidence," said the voice on the tape. "The agents who hastened to level accusations should answer the people about the details of this accusation and about the truth of what they know." While denying a role in the Najaf bombing, the voice on the tape did not mention the other deadly car bombings last month, the attack on the Jordanian Embassy on Aug. 7 and the bombing of the United Nations headquarters on Aug. 19. Investigators here suspect that both may have been the work of supporters of Mr. Hussein. It was impossible to verify whether the voice on the tape was Mr. Hussein's. (by Dexter Filkins)

From http://www.iraqfoundation.org/ 09/03/2003

KYRGYZSTAN: Government-Sponsored Media Council Set Up

A national conference on the media and civil society organized by the presidential press service took place on Lake Issyk-Kul on 12-13 September and ended with the creation of a media council, RFE/RL's Kyrgyz Service and akipress.org reported on 14 September and 15 September, respectively. The declared objective of the council is to settle conflicts arising from the professional work of journalists before they reach the courts. It comprises parliamentarian Zaynidin Kurmanov, television presenter Tamara Valieva, university professor Kadyr Omurkulov, BBC correspondent Tolkunbek Turdubaev, correspondents Yevgenii Denisenko of the pro-government daily "Vechernii Bishkek" and Vadim Nochevkin of the independent newspaper "Delo No," "Osh Sadosi" Editor in Chief Abdugani Abdugafarov, independent Pyramid TV Vice President Murat Kaipov, and media producer Aktan Abdykalykov. Opposition journalists at the conference said the media council will likely play the role of media overseer for the president's office. BB (by Timur Onica)

From http://www.eurasianet.org/ 09/16/2003

KAZAKHSTAN: New Minister of the Interior Appointed

By order of the president of RK Nursultan Nazarbayev Zautbek Turisbekov has been appointed as a new minister of the interior of RK, KZ-today has been advised in the government press service. Z. Turisbekov was born in December, 1951, in South Kazakhstan oblast. Graduated from Kazakhstani Institute of Chemistry and Technology. He started his work activities as a lecturer. Lately he was heading the Agency for migration and demography of RK, worked as a deputy head of the presidential administration of RK. Since August 2000 he was the chairman of the Agency of RK for state service affairs. Kairbek Suleimenov, who previously occupied the position of the minister of the interior, has been relieved from his duties due to a transfer to another work.

From http://www.gazeta.kz/ 09/15/2003

TURKMENISTAN: Justice Ministry Renamed

Turkmen President Saparmurat Niyazov announced at a 1 September cabinet meeting that he is renaming the Justice Ministry and appointing a new minister, turkmenistan. ru and Interfax reported on 2 September. The new name, Adalat ministrligy, using the Turkic word for justice instead of the international term, is meant to convey fairness, honor, and order, in addition to strict justice, Niyazov said. He said the renamed ministry will be given additional responsibilities, including carrying out an inventory of all property -- both state-owned and private -- in the country and checking on how it is being used. It is also supposed to assume responsibility for lawyers, notaries, and civil-registration offices. Taganmyrat Gochyev was appointed minister. He has been running the Justice Ministry for the last six months as first deputy minister. The post of justice minister has been vacant for more than three years. BB (by edward weihman)

From http://www.eurasianet.org/ 09/03/2003

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AUSTRALIA: On Alert for SARS

The federal government was today on standby to reactivate surveillance and containment systems as the world held its breath about a possible return of the killer SARS virus. Singapore health authorities yesterday reported the first probable case of Severe Acute Respiratory Syndrome since the World Health Organisation declared the global epidemic beaten on July 5. Australia scaled down measures to detect and respond to SARS on July 28, including phasing out nurses at airports and no longer requiring SARS-free landing clearance from airlines. A government spokesman today said the reported case was currently being treated as an isolated incident and no immediate response was necessary. However, confirmation of the infection by the WHO or evidence of a new SARS outbreak would trigger an Australian response. "We're keeping a watching brief on it at the moment but it's only an isolated case and confirmatory tests are still pending," the spokesman said. "One of the things we built into the plan to shut down (the surveillance and response system) was the ability to ramp it up again very fast." Meanwhile, medical experts said Australians should be alert but not alarmed. "Laboratory testing for SARS is difficult ... and I think one would want to be very, very sure that this is a real result," senior Sydney virologist Dominique Dwyer told AAP. "We assume that SARS has gone but nobody knows - we don't have enough experience to know whether it could come back, whether there are people that might be carrying the infection and are not sick and are a source. "I would be just watching and waiting now - alert but not alarmed." The WHO also said the man in Singapore could not yet be considered the first new SARS case until the next round of test results were in. "We're not calling it a SARS case. It's not even probable SARS, it's suspected SARS," WHO regional spokesman Peter Cordingley said. Singapore General Hospital today sealed off three wards after the ethnic Chinese man tested positive for SARS - the country's first suspected victim of the potentially deadly respiratory illness since May. The man, a Singaporean citizen, had worked in a virology laboratory and had not travelled to China or Hong Kong recently, the Straits Times newspaper reported. He had checked into the accident and emergency department at Singapore General before being rushed late yesterday to Tan Tock Seng Hospital. The Ministry of Health said a first round of tests had returned positive results. A second round of tests had been carried out but the results have not yet been publicly released. Ministry officials were expected hold a news conference later today. SARS originated in southern China and was spread early this year to 30 countries by travellers. It infected nearly 8,500 people globally and more than 800 died. Australia reported six cases to the WHO, including one laboratory-confirmed case, but there was no local transmission of the disease. News of the latest case came just hours after the WHO warned health specialists meeting in Manila of a possible resurgence of SARS.

From http://www.theage.com.au/ 09/09/2003

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Review of Defence to Target Costs

Cabinet's National Security Committee will consider a major restructuring of the Defence organisation this week, including the creation of a new three-star post to oversee capability development for the defence force. At stake is the future of the Defence Materiel Organisation, with cabinet expected to accept the main findings of a government review into the 7000-staff body by Adelaide industrialist Malcolm Kinnaird. The new three-star defence post - equivalent ranking to the chiefs of the navy, army and air force - would be responsible for refining all proposals for major new equipment before contract signing. The aim is to avoid big cost overruns associated with defence projects, such as the Collins-class submarine, the Jindalee over-the-horizon radar and the Seasprite helicopter. Historically the defence acquisition process has seen a litany of cost blow-outs due to poor contract management or capability changes long after agreement on contract prices. The specially funded post of Chief of Capability Development would not be part of the DMO but would report directly to the Secretary of Defence, Ric Smith, and defence force chief Peter Cosgrove. Cabinet is expected to accept the Kinnaird report's view that the next chief executive of the DMO be drawn from the private sector, with a salary package determined by the Remuneration Tribunal on the advice of the Defence Minister. The DMO has been without a chief executive since the retirement last month of Mick Roche, its head since its creation in July 2000. Defence Minister Robert Hill is yet to nominate a successor to Mr Roche. A global search for a new chief executive is expected to begin within weeks. The Government wants to "professionalise" the DMO and turn defence project management into a genuine career stream, steadily moving away from the present practice of rotating military officers through the DMO. About 2000 defence personnel serve in the DMO, most of them on two or three-year postings. A key option still to be resolved is whether the DMO, which manages $25 billion worth of major defence equipment projects, becomes a more autonomous defence agency reporting direct to Senator Hill, rather than through the Secretary of Defence and the Chief of the Defence Force. One model for consideration is Britain's defence procurement agency, which is only responsible for acquisition of major capital equipment, unlike the DMO, which also manages defence logistics. While the Government accepts that the DMO's management of multi-billion-dollar projects has improved recently, it continues to have concerns over the cost blowouts in long-term projects, principally the submarines. Another priority is to forge a better relationship with the nation's defence industry, which has long recommended an overhaul of the way major military contracts are managed. (by Patrick Walters)

From http://www.theaustralian.news.com.au/ 09/15/2003

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Row Threatens Labor Reforms

A bitter factional stoush has broken out in the Labor Party that is threatening to engulf its peak governing body and undermine efforts to prepare MPs for a snap federal election. Labor's national president, Greg Sword, a close ally of Simon Crean, is challenging a ruling by the party's National Appeals Tribunal that would weaken his left-wing power base in Victoria. If Mr. Sword's campaign is successful "this will be World War III," said one senior right-wing figure. It represents a challenge to the reforms championed by Mr. Crean to make the party more democratic. The factional brawl, which will come to a head at Friday's national executive meeting, could not have come at a worse time for Mr. Crean, whose leadership remains under intense pressure. Several right-wing figures believe the factional war could be the catalyst to try to further undermine Mr. Crean. Others are speculating the Opposition Leader, who is aligned to the Right, will be gone by Christmas, despite an attempt to revive his fortunes by appointing a new chief of staff, Mike Richards. Opposition MPs have been spooked by speculation that John Howard will exploit Labor disarray and call an early election for December. Federal Tourism Minister Joe Hockey yesterday suggested the Government had every right to call an early double-dissolution election, citing the Senate's refusal to pass key budget measures. "If they're going to continue to impede structural reform, which is good for the Australian people, then we've got a right to test it," the Tourism Minister told the Ten Network's Meet the Press. But senior government sources last night downplayed the prospect of an early election. The election talk reinforces the need to sort out the factional brawl involving Mr Sword. The union powerbroker split from the dominant Right faction last year, causing a realignment within the Victorian branch, which is now controlled by the Left. Former NSW Premier Barrie Unsworth, a member of the appeals tribunal, was asked to rule on a series of rule changes, which the Right claimed had prevented 2000 rank-and-file members from voting in party ballots. Mr. Unsworth handed down his ruling almost a month ago, but Mr. Sword and the Victorian Left are challenging its validity. Mr. Sword last night rejected suggestions he was trying to outmuscle the appeals tribunal. (by Steve Lewis and Alison Crosweller)

From http://www.theaustralian.news.com.au/ 09/15/2003

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Bureaucrat Backpeddles on Housing Warning

The Government's top economic bureaucrat has described the housing boom as a "bubble", suggesting it could burst and threaten economic prosperity. After previously playing down concerns about feverish borrowing and housing activity, Treasury secretary Ken Henry yesterday warned that the debt-fuelled speculative property boom could cause problems. "We have been surprised by the continuing strength of dwelling investment in particular," he told an Australian Food and Grocery Council conference in Canberra. "We have been a little surprised, too, I would have to say, by the continuing growth in real house prices." Dr Henry, a member of the Reserve Bank's nine-member interest rate board, argued for an interest rate cut as recently as June to ward off the effects of drought and global weakness. But he was overruled by other board members, who feared that a rate cut would fuel the already overheated market for investment properties. Yesterday Dr Henry said the "housing bubble" - along with weak global conditions - was a key threat to the economy. He immediately tried to back away from the term, telling the public forum it was "not for quotation outside of this room". The term "bubble" is used by economists to describe a situation in which irrational exuberance pushes prices to unrealistic heights, followed by a burst. The term came to prominence in 1720, when rumours pushed shares in the British South Sea Company up by 670 per cent before the bubble burst. More recently, it was applied to the ill-fated dot.com boom. Since the early 1990s, borrowing by households has been rising at double-digit annual rates. The average household now owes a record $129 for every $100 earned - one of the highest debt-to-income ratios in the developed world and more than double the $56 owed for every $100 earned a decade ago. Average house prices in capital cities increased by 18 per cent over the year to June. But Real Estate Institute of Victoria chief executive Enzo Raimondo denied the housing boom was a bubble. "To have a bubble bursting would require some major changes in the economy, like much higher unemployment. There is no evidence that is going to happen." Economists now believe the Reserve could lift its official interest rate before Christmas to calm the housing boom. Dr Henry said the debt surge could trigger a sharp drop in spending, although he said this was the least likely outcome. "Consumption could fall dramatically, and that's a risk (but) the more likely outcome is that GDP growth will lift, and as GDP growth lifts incomes will lift, and the household savings ratio will correct." He said the international outlook remained the key risk. "The short to medium-term challenges are in these areas: the drought, the housing bubble... consumer debt, the international outlook, the exchange rate and, of course, national security and defence." This material is subject to copyright and any unauthorised use, copying or mirroring is prohibited. (by Josh Gordon)

From http://www.theage.com.au/ 09/17/2003

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FIJI: World Heritage Committee Established

The cabinet has greed to the setting up of a world heritage committee that will assist the National Trust of Fiji towards this process.?The decision follows efforts to declare the old national capital of?Levuka a world heritage site. In his submission to Cabinet on efforts to have Levuka listed as a world heritage site, Prime Minister, Laisenia Qarase said efforts to list Levuka as a historic town began in 1987, but various factors contributed to the delay in achieving that aim. Meanwhile, Qarase said with the establishment of the world heritage committee, national policies will be developed to support Fiji's obligations under the world heritage convention.

From http://www.pacificislands.cc/ 09/24/2003

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NEW ZEALAND: National, Act Will Try to Restore Privy Council

National and Act will try to restore appeals to the Privy Council if they become the government. Act MP Stephen Franks said his party would also consider sacking any Supreme Court judges his party thought were "activist" and creating law rather than applying it. The Labour-led Government intends to have a new Supreme Court running by the middle of next year, which will replace the London-based Privy Council as New Zealand's final appeal court. Only New Zealand judges will be able to sit on the court, and they will be appointed after recommendations from a panel which will comprise the Chief Justice, the Solicitor-General and former Governor-General Sir Paul Reeves. The select committee which heard public submissions on the Supreme Court Bill reported this week that most people were opposed to the change. But Labour, Green Party and United Future MPs on the committee voted for the Supreme Court Bill to go ahead. Attorney-General Margaret Wilson said yesterday that it was the Government's intention to have legislation passed abolishing Privy Council appeals by the end of the year, and the Supreme Court operating by July. National, Act and New Zealand First have launched a petition to try to get a referendum held on the change, and Mr. Franks said that work would continue despite the legislative timetable. About 340,000 signature would be needed to force a referendum, although its results would not be binding on the Government. Mr Franks said yesterday that if the public had been able to debate the change properly, they might have supported the new court. He said Act had failed to get a provision inserted in the new law indicating it was a judge's job only to apply and interpret the law, not to make it. "We're saying if we get judges who decide that is their role - they're activists - we'll sack them. Even if we can't reverse the court, we'll sack them and put in judges who will apply the law." National MP Richard Worth said: "The judges of the new court have the potential to reshape the legal and social landscape . . . and it is entirely wrong that they should be appointed through a limited political process." Labour has secured only the backing of the Progressive Coalition and Green Party for the change, meaning the bill may pass only by 63 votes to 57. (by Helen Tunnah)

From http://www.nzherald.co.nz/ 09/18/2003

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Call for Action on Corruption from PM

THE GOVERNMENT has been urged to dismiss immediately or at least stand down ministers of the crown and senior public servants who have seriously broken their oath of office. Advisor to the Solomon Islands Development Trust Dr John Roughan said, for instance, the Minister of Fisheries should resign out right or at least step down while investigations take place about his officers helping themselves to eleven-thousand dollars each for ex gratia payments from public money. Dr Roughan adds that the officers don't deny embezzlement charges, saying their excuse is that other public officers had received such payments, even larger ones. He says they saw themselves as unjustly treated by cabinet and rewarded themselves by taking the money and were actively searching for more. He also said the minister who sent his personal thugs down to a Honiara newspaper demanding a five-thousand dollars compensation payment for printing up the truth about him must be dismissed. Dr Roughan also called on the Prime Minister to terminate the minister who led the charge for Solomon Islands to import millions of tons of toxic waste to be dumped on Makira's Weather Coast. He adds that the leading ministers and the Prime Minister's senior advisers who thought that the bogus Royal Assembly of Nations and Kingdom's billions would actually save the nation must also leave for making the nation a mockery in the eyes of many, a laughing stock for other countries. He said let the law take its course but the PM must make a quick decision to return a bit of dignity to the office of the Cabinet. Dr Roughan called on the Prime Minister saying it is time to show real leadership by standing down or dismissing those ministers and public servants who destroyed Solomon Islands.

From http://www.pacificislands.cc/ 09/16/2003

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Public Servants Seek Guarantees Over RAMSI's Role

THE SOLOMON Islands Public Employees Union says it will seek a written agreement with members of the Australian-led intervention, RAMSI. SIPEU General Secretary Clement Waiwori says he has concerns about the 13 RAMSI appointees that have been placed in key government departments. Waiwori says there has been no consultation with his union and some of his members are worried about job security. He says he will be requesting a memorandum of understanding from RAMSI stating that their consultants will only be placed in supervisory roles. And If it doesn't happen, then we will take the matter further. This could cause problems, it may have some legal implications as well, because most of the appointments, were appointed under the public service regulations, the labour laws in the Solomon Islands and RAMSI cannot just come here and do like Rambo was doing in the movies, we are not at all in a position to accept that, he said. Mr Waiwori says industrial action could follow if no agreement is reached.

From http://www.pacificislands.cc/ 09/16/2003

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9 Asian Cities Hold Crisis Management Meeting in Tokyo

TOKYO - Crisis management officials from nine Asian cities gathered in Tokyo for a one-day meeting Tuesday to discuss measures against terrorist attacks made with nuclear, biological or chemical weapons. A total of 24 officials from Bangkok, Beijing, Delhi, Hanoi, Jakarta, Seoul, Singapore, Taipei and Tokyo are participating in the meeting, the first Asian Crisis Management Conference to discuss antiterrorism measures.

From http://www.japantoday.com/ 09/02/2003

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Manila Declaration on Strengthening Participation in Sustainable Youth Employment

WE, the Ministers Responsible for Youth, of the ten (10) ASEAN member countries: Brunei Darussalam, Kingdom of Cambodia, Republic of Indonesia, Lao People's Democratic Republic, Malaysia, Myanmar, Republic of the Philippines, Republic of Singapore, Kingdom of Thailand, and the Socialist Republic of Vietnam; HAVING gathered in Manila on 3-4 September 2003 for the Fourth ASEAN Ministerial Meeting on Youth (AMMY IV); DESIROUS TO strengthen the gains brought about by and consistent with the Jakarta Declaration of the First AMMY in 1992, the Kuala Lumpur Agenda on ASEAN Youth Development of the Second AMMY in 1997; and the Yangon 2000 Declaration on Preparing ASEAN Youth for the Challenges of Globalization of the Third AMMY in 2000; FURTHER AFFIRMING the UN Millennium Summit Declaration, particularly the resolution to implement strategies to give young people everywhere a real chance to find decent and productive work; RECALLING the Youth Employment Network initiated by the UN Secretary General, in collaboration with the ILO and the World Bank during the Youth Employment Summit in Alexandria, Egypt; EMPHASIZING the importance of youth as a vital human resource of ASEAN nations and the need to formulate and implement youth development policies and programs to realise the potential of this segment of ASEAN's population; UNDERSCORING our commitment towards empowering the ASEAN youth so that they are fully confident and capable of meeting the challenges of globalisation; RECOGNISING that continued support through policies, programs, and technical interventions is necessary to sustain the strength and vitality of the youth sector within ASEAN societies; MINDFUL of the Hanoi Plan of Action, priorities calling for implementation of the ASEAN Work Programme on Skills Training on Out-of-School Youth, to strengthen their capacity to obtain gainful employment, and to foster small and medium-sized enterprises which constitute the majority of industries in ASEAN and play a significant role in the over-all economic development of ASEAN nations; SEEKING to address unemployment and underemployment as an emerging major area of concern for the youth of ASEAN within the context of globalisation; DO HEREBY DECLARE to strengthen participation in sustainable youth employment through the following: Improve the availability and quality of human resources training and leadership development programs designed specifically for ASEAN youth so that they are better equipped to participate in the growth and development efforts of their respective countries; Ensure that all youth subsectors, particularly the out-of-school youth, youth with special needs, youth-at-risk, are given appropriate access to policy and program development both as beneficiaries and partners in sustainable employment; Prioritise entrepreneurship and sustainable employment on ASEAN's development agenda to open new opportunities for the young people that would allow them to create a better future for themselves and their ASEAN community; Create a nurturing environment conducive for the development of young entrepreneurs with access to education, skills-training, and capacity-building that is essential for increased productivity and self-employment; Promote the spirit and the culture of entrepreneurship among the ASEAN youth and facilitate the establishment of small and medium-sized enterprises that would create jobs and address the unemployment issue of young people so that they would become productive partners for a strong ASEAN region; Establish a network of young entrepreneurs at the national and ASEAN level so that they could link up and together build their capacities and skills for better competitiveness in the global market place; Strengthen the participation of youth volunteer groups and organisations in the socio-economic development process so that they would be able to augment and complement government and non-government resources and efforts directed at youth development; Enhance and strengthen international, regional, and national partnerships with educational institutions so that these can perform an active role in improving the skills, competence, and employability of ASEAN youth, as well as help in developing an integrated and systematic enterprise development and youth employment program for the region; Encourage closer linkages between ASEAN and other like-minded organisations addressing youth employment concerns to further pursue innovative approaches in jointly addressing the global challenge of youth employment; and Implement the ASEAN Work Programme on Preparing ASEAN Youth for Sustainable Employment and Other Challenges of Globalisation, adopted by the 4th ASEAN Ministerial Meeting on Youth. DONE in Manila, Philippines, this Fourth Day of September in the Year 2003, in one single copy in English.

From http://www.aseansec.org/ 09/03/2003

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ADB Establishes Clean Development Mechanism Facility

Asian Development Bank (ADB) President Tadao Chino announced Wednesday that the bank has established a facility aimed at promoting the utilization of clean and cost-efficient energy generation. Through this Clean Development Mechanism (CDM) facility, the multilateral lending institution will assist its developing member countries to "explore new opportunities for generating resources through the sale of emission credits," Chino told a regional forum here.　　The market for CDM projects in Asia is "very promising" due to a huge potential for investments in low-cost greenhouse gas emission abatement options, he said at the opening session of the three-day Southeast Asia Forum on Greenhouse Gas Mitigation, Market Mechanisms and Sustainable Development. The CDM, defined in the Kyoto Protocol to the United Nations Framework Convention on Climate Change, is a flexible financing instrument that enables developing countries to benefit from reductions of emissions of harmful greenhouse gases and promote sustainable development. A typical CDM project produces a marketable commodity, namely emissions reduction credits. The sale of this kind of credits to developed countries and companies with emission reduction targets can help generate additional revenue for a CDM project in the developing country. Chino appealed for active participation of the private sector in the CDM facility. "Although compliance with the Kyoto Protocol is a government responsibility, the private sector, both in developed and developing countries, is an integral participant in the market for emission credits, as well as in the development of new technologies to reduce greenhouse gas emissions," he said. The ADB president also called for more efforts by the international community to address both the causes and the effects of global warming, saying developing countries and the poor will suffer the most from the global climate change. Some 300 representatives from government, private and nongovernmental organizations in the region as well as from members of the Organization of Economic Cooperation and Development are attending the forum, co-hosted by the ADB and the Philippine Department of Environment and Natural Resources.

From Xinhuanet 09/10/2003

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Conference on Energy Co-operation in Central Asia

A two day international conference "Regional energy co-operation in Central Asia and the role of Energy Charter process" has concluded its work in Tashkent, a KZ-today correspondent has learnt from a report by the Energy Charter Secretariat. The conference organised together by the Energy Charter Secretariat and the government of Uzbekistan with an additional financial support of the Ministry of Foreign Affairs of Great Britain, gathered representatives of governments of five Central Asian states, as well as representatives of Russia, China, Mongolia, Japan, Turkey and Iran. Representatives of international organisations and business circles also participated in the conference. During the conference its participants discussed the necessity to create an attractive investment climate in the energy sector of Central Asian states, pay more attention to the strategy of increasing energy efficiency in the region and to establish a more stable legal regime for the transit of oil, gas and electric power in Central Asia and beyond to the foreign markets. Also issues related with the domestic gas and electric power market restructuring in Central Asia were discussed. On each of these directions a special attention was paid to the role of Agreement on Energy Charter (AEC) - a multilateral frame agreement, promoting the interstate co-operation in energy - as a legal basis for the protection of investor rights, lowering political risks, related with energy transit and trade, as well as for the development of competitive energy market. All five Central Asian states today are parties to the AEC.

From http://www.gazeta.kz/ 09/25/2003

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CHINA: To Introduce "Chief Legal Officer" to Major SOEs

The Chinese central government is to introduce a "Chief Legal Officer" (CLO) system to the managerial groups of all major state-owned enterprises (SOEs) next year. According to the State Assets Supervision and Administration Commission (SASAC) under the State Council, the drafting of the legal counsel system in SOEs is speeding up. A senior SASAC official Wednesday told a conference attended mainly by legal staff members of SOEs that a document titled LegalCounsel Management Methods for SOEs will come out around the end of this year, so as to pave a way for the expansion of the CLO system to all SOEs from the current 24 trial ones. While it is common practice for a Western investor to take at least two persons when starting a new project: a chief accountant to calculate the economic risk and a CLO to calculate the legal risk, legal staff in China's SOEs stay at relatively lower level, and mainly deal with the company's routine legal affairs. Advice from legal staff is becoming increasingly important to acompany's operation now that China has entered the World Trade Organization and China's new government is determined to govern the country based on law, the official said, noting that SASAC, designated by the State Council as the owner of the state assets, is trying to raise SOEs' capability to deal with legal risks by promoting the CLO system. 　　The CLOs in the 24 trial SOEs, which started to establish the CLO system late last year, are leading members of their enterprises, being directly responsible to the representatives of the enterprises, and have the duty to offer legal advice on the company's major operational decisions. Through the CLO system, SASAC means to strengthen legal supervision over SOEs as well as financial supervision through thegeneral accountant, to help them avoid legal risks, said the official. SASAC is currently summing up the experience of the trial enterprises, and will set out the CLO's major duties and methods when evaluating an enterprise's capacity to avoid legal risks, he said.

From http://news.xinhuanet.com/ 08/28/2003

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Banks to Adopt Five-Category Loan Classification System in 2004

China's wholly state-owned commercial banks (SCB) and joint shareholding commercial banks (JSCB) will adopt the international five-category loan classification system as of 2004. Sources with the China Banking Regulatory Commission (CBRC) said on Sep.5 that the existing parallel four-category loan classification system will be phased out by that time. The five-category system classifies bank loans according to their inherent risks as pass, special-mention, substandard, doubtful and loss. "Pass" indicates that borrowers are able to honor the terms of the contracts and there is no reason to doubt their ability to repay the principal and interest of loans in full and in a timely manner. "Special-mention" means that borrowers are able to serve their loans currently, although repayment may be adversely affected by specific factors. "Substandard" means that borrowers' abilities to service their loans are in question. Borrowers cannot depend on their normal business revenues to pay back the principal and interest so losses may ensue, even when guarantees are invoked. "Doubtful" indicates that borrowers cannot pay back the principal and interest in full and significant losses will be incurred, even when guarantees are invoked. "Loss" means that the principal and interest of loans cannot berecovered or only a small portion can be recovered after taking all possible measures and resorting to necessary legal procedures. The current four-category system categorizes loans as pass, past-due, idle and loss.

From Xinhuanet 09/05/2003

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Government Focuses on Technical Innovation

Vice-Premier Zeng Peiyan yesterday said the government will continue to support technological innovation and co-operation in the cement industry, so as to speed up the sector's modernization and restructuring. Speaking at the INTERCEM Asia conference - an important gathering for the cement industry in the Asia-Pacific region, which opened yesterday in Beijing, Zeng said China's cement sector has dramatically improved its technological level as its development has been fuelled by the country's rapid economic growth. "In terms of production lines employing the new dry process and construction engineering service, China has basically reached the world's advanced level," Zeng told more than 500 participants from 50 countries and regions at the meeting. Technological advancement will speed up the industry's restructuring, he said. China has led the world in annual output of cement since 1985. But the backward vertical kiln cement production technology was used in 70 per cent of total cement output, which hit 725 million tons last year, according to industrial insiders. Zeng said the use of the new dry process in cement production in China has substantially resolved the dust pollution problem, and is making the industry more environmentally friendly. The vice-premier said the Chinese Government will lend continuous support to continued technological innovation and international co-operation in the industry. Tan Zhongming, president of the China National Non-Metallic Materials Industry Corp, said at the meeting that the cement industrial restructuring also means opportunities for global cement investors.

From China Daily 09/05/2003

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Applying for a Passport in China No Longer a Bureaucratic Nightmare

The first step towards an overseas vacation - getting a passport - has become increasingly convenient for many in Beijing. But applying for a passport in China used to be an uphill task. Advertisement Not too long ago, applying for a passport in China was a bureaucratic nightmare, involving countless paperwork and endless visits to the Public Security Bureau. But now, authorities have promised all these have become a thing of the past. In the past, you needed a letter of invitation from a foreign organisation or individual, and a letter of approval from your work unit. This was followed by an extensive interview and a thorough investigation into your background. Up to two years ago, passport applicants had to have at least US$4,000 in the bank. This was to ensure they would return to China after their visit overseas. From this month, all it takes to apply for a passport is one's identity and residence cards, and a simple form. Next, a payment of about US$24 and the passport can be picked up within 10 days, or delivered by courier. Said Wen Yi, a passport applicant: "I want to go to Australia and visit my son. In the past I would need an approval letter from my work unit. That's a very complicated process which requires my boss' approval. Now it's definitely more convenient." Application forms can even be downloaded from the internet. Zhang Yindi, Deputy Director, Exit-Entry Administration, Public Security Bureau, said: "In the past, if private individuals wanted to visit Hong Kong on business, they could only apply for tourist visas. Now they can apply for business visas using their business registration certificates." The changes are in line with Beijing's efforts to improve the efficiency of government departments. A passport applicant, Yu Jin said: "Officials at the Public Security Bureau now have a better attitude and are more patient. They tell us where to go and what the procedures are." The move also caters to the growing number of affluent Chinese who want to take holidays abroad. Li Ying, another passport applicant, said: "I'm here to apply for passports for my parents as I would like to take them for a vacation in the Maldives." But while most Chinese will benefit from the relaxed policy, some including civil servants will continue to undergo stricter scrutiny because of national security concerns.

From http://www.channelnewsasia.com/ 09/09/2003

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CBRC to Strengthen Risk Management over Small and Medium-sized Banks

Responsible persons of the China Banking Regulatory Commission (CBRC) expressed, in the second half of this year, CBRC will strengthen risk management over small and medium-sized commercial banks from the following 6 aspects: While continuing to promote and improve the 5-level classification system for loans, efforts will be made to supervise and urge small and medium-sized commercial banks to foster the concept and notion of scientific risk management, strictly implement loan risk classification, improve risk management system and precisely measure risk extents; Stress will be placed on the supervision of asset quality, earning capacity, fluidity and capital ratio, and risk checks will be expanded to include non-credit assets and off-the-statement businesses; Small and medium-sized commercial banks will be prompted to make use of the credit registration and consulting system to acquire knowledge about the financial status of borrowers, and at the same time, small and medium-sized commercial banks will be encouraged to make concerted efforts with the trade association to learn about the overall status of loans granting and loan structures, in an aim to prevent and correct overcentralization of loan placing and excessive competition in interests; Small and medium-sized commercial banks will be supervised and urged to give priority to development of big customers and key customers, and to make efforts to discover and cultivate SMEs and good customers with high technological content, and marketable and profitable products in the private sector, optimize loan orientation and loan structures, and decentralize and reduce credit risks; In accordance with the business development status of small and medium-sized commercial banks, the principle of classified guidance will be adopted to urge them to implement various requirements on supervision to nip risks in the bud; In light with the prudent accounting principle, efforts will be made to standardize related names of account to reflect the real performances, and speed up accrual of reserve funds. In addition, small and medium-sized commercial banks will be demanded to place intensified efforts on clearance and collection so as to cancel losses on bad debts after verification.

From FDI 09/10/2003

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Transparency Urged in Restructure Plans

As listed Chinese companies gather pace in restructuring, the authorities are being urged to come up with more detailed and easy-to-follow regulations to make the exercise more transparent and fair. Many domestic listed companies are hurrying with restructuring plans, skirting around existing policies before the regulators set up a comprehensive legal framework in the sector, a report in yesterday's Shanghai Securities News said. The pricing of State-owned holdings, for example, is one common concern. To fix fair and transparent prices for such holdings during mergers and acquisitions would require the authorities to design clear standards for the deals. The State-owned Assets Supervision and Administration Commission (SASAC) is currently drafting a regulation on the transfer of property rights owned by the State. "The sooner such rules are released, the less losses the State will shoulder," said an analyst in Beijing, who did not want to be named. The restructuring of the listed companies is a complicated matter and there are many grey areas where existing laws and regulations do not cover or specify, such as management buy-outs, he said. So some people would make use of the loopholes to seek personal gains. Meanwhile, there is a lack of coordination between different government departments on the approval and supervision of such State share transfers in listed companies. The government of Hunan Province recently announced a massive plan to sell State holdings in local listed companies. In Wuhan, capital of Hubei Province, a similar plan is in the offing. The city plans to divest State holdings in 90 per cent of enterprises in the next two years, according to a document issued by the municipal government in May on SOE reform and development. SASAC, set up to provide unified management of State-owned assets, needs to move faster to set up local supervisory agencies to take over the power from local governments, a SASAC spokesman said. Otherwise, the local moves will make central bodies and regulations irrelevant; and it would be hard to monitor risks and curb fraud when SASAC takes over the powers. To ensure efficiency, the restructuring would need sound macro planning, such as in what sectors should the State force withdraw, the timetable, and how to deal with critical issues, said Zhang Junkuo, a researcher with the Development and Research Centre of the State Council. Transparency is another essential to ensure fairness during the reshuffle. The China Securities Regulatory Commission has issued a series of regulations on information disclosure of listed companies. It also announced a long-expected regulation last weekend on fund flows between listed companies, the major shareholders and affiliates to curb misuse of funds in listed companies and protect the interest ofs the minority shareholders. But in practice, there are still avenues for listed companies to evade supervision and information disclosure and find new methods to misappropriate the funds, said Zhang Mingxing, a researcher with the State Information Centre. He urged the government to come up with liquidity plans for non-tradable State shares and let the market price reflect the real worth of listed firms.

From China Daily 09/10/2003

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China to Establish Motivation system in Financial Sector

The Governor of the People's Bank of China, Zhou Xiaochuan says the country is to set up a motivation system within its financial sector. Speaking at a forum in Beijing Friday, Zhou Xiaochuan said there's long been a lack of motivation in China's financial sector, particularly in the banking system. Beforehand, well-performing financial institutions were encouraged to take over those under-performing ones. However, this became a burden for them, and the practice can no longer be continued. Zhou Xiaochuan believes that, with an effective motivation system, healthy institutions will gain a larger share of the market, along with ample opportunities for expansion.

From CRI 09/13/2003

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China Sets Out Airport Management Reform Plan

China's aviation sector has been back in the headlines in recent days after a major airport transfer plan was revealed this week by the Civil Aviation Administration of China or CAAC. The body formally announced that most of the country's domestic airports would be transferred to the control of local governments. The State Council, or the central government, passed measures authorizing all civil airports to be handed over to the control of local governments, with the exception of international airports, the Tianjin Binhai Airport, and all airports in Tibet. The transfer involves a total of 93 airports and is planned to be completed before the end of this year. The move is largely seen as a follow-up measure to the restructuring of major domestic airlines into six large groups. Accompanying the transfer move, the aviation authority is going to withdraw its bureaus from 23 provinces across the country. According to the aviation authority, new airport management companies will be established at the provincial level, and the CAAC will no longer be entitled to interfere in the affairs relating to local airport management. In addition, all the security affiliates of the airport will also be transferred to local control.

From cctv.com 09/16/2003

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International Standards to Be Set for TCM

The World Federation of Chinese Medicine Societies (WFCMS), founded yesterday in Beijing, will establish and publish an international standard for Traditional Chinese Medicine (TCM). The lack of a globally-accepted international standard has long been a headache for TCM, said Li Zhenji, vice-director of State Administration of TCM. The top priority in the WFCMS constitution is to establish such an international standard and push forward development of TCM in other countries and regions, Li said at the organization's founding conference. Headquartered in Beijing, the WFCMS will have legal status for setting and spreading the international standards of TCM, said Li Zhonghai, director of Standardization Administration of China. Currently, TCM is not legally recognized by most of international community, partially due to the shortage of an international standard and the lack of understanding of the TCM, said Li. Other objectives of the organization are to promote understanding and co-operation for TCM among the academic sector, to strengthen international academic exchanges, and improve the level of TCM according to the constitution of the WFCMS. The organization will also assist Chinese medicine in getting access to the mainstream medical community to make contributions to healthcare. About 150 representatives from 118 TCM academic communities and organizations from 43 countries and regions are attending the conference. A chairperson and other members of the WFCMS executive council will be elected today. TCM has spread to many countries, including Britain, where more than 3,000 TCM clinics have opened in recent years. During last spring's outbreak of severe acute respiratory syndrome (SARS), more than 50 per cent of the SARS patients in China received TCM treatment, said She Jing, director of the State Administration of TCM.

From http://www1.chinadaily.com.cn/ 09/26/2003

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JAPAN: Berkeley Professors Sought in Japan Constitution Tweak

A group of prominent Japanese officials sought advice from UC Berkeley professors yesterday about a possible overhaul to Japan's long-standing constitutional block on maintaining an aggressive military force. Three members of a Japanese constitutional review commission, including two Diet members and a former foreign minister, lectured on these changes at the Alumni House. Their visit is part of a whirlwind North American tour to study other countries' constitutions. "The current Japanese prime minister upholds rights for individual defense but denies existence of a collective defense," said Taro Nakayama, former foreign minister and current chair of the commission. The Japanese constitution stems from the country's unconditional surrender to the United States after World War II. U.S. officials drafted the constitution, including a well-known provision, Article 9, which declared an end to Japan's military prowess. "Aspiring sincerely to an international peace based on justice and order, the Japanese people forever renounce war as a sovereign right of the nation," the article stated. Adhering to this principle, Japan has not maintained a military force since 1947 when the constitution was in effect. Japan only holds a relatively powerless defense force. Despite the more than 50-year-old tradition, many Japanese legislators are calling for a reformulation of their nation's sovereign rights, following the heightened security concerns after the Sept. 11, 2001 attacks. "If we create a new constitution, it should reflect the reality of the changing world with a basis in the tradition, culture and history of Japan," Nakayama said. Nakayama evoked the United Nations Charter promise that each nation is entitled to defend itself. Part of the inertia behind the possible overhaul of this constitutional provision is the hope that it will incorporate more Japanese traditions, boosting national pride, Nakayama said. Even today, Japan's defense force is still supported by U.S. funding. American tax dollars cover 23 percent of Japan's air bases, Nakayama said. Following the talk, the Japanese delegation interviewed UC Berkeley professors, asking questions about the dynamics between the U.S. and California constitutions. "It was like a learning mission," said political science professor Steven Vogel, who specializes in Japan. (by Regina Chen)

From http://www.dailycal.org/ 09/03/2003

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289 Teachers Found Incompetent in 2002, 3 Dismissed

TOKYO - Local education boards found 289 teachers at public elementary, junior high and high schools in Japan were not competent enough to instruct or supervise students in fiscal 2002, the education ministry said Friday. The ministry said 19 teachers were punished during the period and three of the 19 were dismissed due to incompetence. Shortcomings included an inability to converse with students and conducting lessons without much interaction. Also reported were cases in which teachers made too many mistakes in mathematics and kanji characters, some teachers who could not grasp the status of students' proficiency, or teachers continuing with lessons even when the entire class had left them.

From http://www.japantoday.com/ 09/13/2003

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SOUTH KOREA: Minister Talks about Three Labor Reform Goals

In a briefing session on Thursday (September 4), Labor Minister Kwon Ki-hong identified three goals in the government labor reform endeavor: minimizing the social costs incurred by management-labor disputes, achieving a flexible and stable labor market, and narrowing the gap among the strata of labor classes. Minister Kwon said, the government will first make all the efforts necessary to build a firm system of law and order affecting the labor sector. In so doing, the government will streamline related laws and systems, so that it could avoid forcefully restricting strikes and enhance the basic rights of workers as well as those of management to the level of international standards, in a bid to deter indiscrete strikes. The minister also stressed that the government will strongly respond to all illegal activities, including forceful occupation of production and other major facilities, blocking entry to workplaces, obstructing the work activities of non-union members, engaging in violent/destructive acts and making threats, which would harm the fundamental order in labor-management relations. At the same time, the minister said, the government will promptly deal with the illegal labor-related activities by management, deploy labor-superintendents to workplaces where such illegal activities are frequently reported to conduct special auditing. Secondly, the minister said, the government will focus on establishing a trust-based, close partnership between management and labor. To bring about the desired result, the government will seek to activate management-labor consultation channels and develop them as a forum to share information as well as build a relationship of cooperation. There will also be an effort to prepare action plans drawn for better utilization of the consultation channels, led by the labor-management-labor tripartite committee. The government will also support prominent labor organizations in their effort to develop policies for better labor-management relations, and streamline the operations of government committees and fund-deliberation committees so as to allow labor and management a larger role in the labor policy decision-making process of the government. Thirdly, the government will make further efforts to reform the public sector, so that the sector would exemplify in establishing autonomous patterns between labor and management in their efforts to resolve differences. Fourthly, the government will prepare and implement specific measures designed to stabilize the labor market and expand the nation's social safety network for workers. The government will come up with employment stability measures tailored for each disadvantaged labor class, seek to boost the labor market, help workers to develop individual job abilities under a Life-long Job Ability Improvement Program, and expand the coverage of employment/industrial insurance to part-time laborers and construction-site workers. The Ministry of Labor said it plans to submit to the National Assembly before the end of this year the bills regarding the formation of government labor groups, the eliminating of abuse on "irregular jobs," and severance-pension plans.

From http://www.korea.net/ 09/05/2003

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Seoul Takes Tougher Steps to Curb Property Speculation

RISING REAL ESTATE -- Built in 1979, the Eunma apartment complex in Daechi-dong is at the center of the recent sharp surge in apartment prices in southern Seoul. The prices of this apartment complex with 4,424 households and other decades-old apartment houses have gained more than 30 percent since a year ago, as reconstruction projects sparked speculation. In a surprise move, the Korean government has announced tough, new measures to halt real-estate speculation, targeting the property redevelopment market. These measures are part of the administration's ongoing efforts to curb soaring apartment prices in southern Seoul, a trend that is showing signs of spreading to other areas. The Ministry of Construction and Transportation yesterday issued new regulations that require apartment redevelopers to build more small-sized apartments. The rules also ban trading on the exclusive rights to buy apartments. Under the new rules, redevelopers of old apartment complexes in the densely-populated Seoul metropolitan area are required to build at least 60 percent of new apartment units no bigger than 85 square meters, compared with the current minimum requirement of 20 percent. Beginning next year, current dwellers in apartments in government-designated "highly speculative areas" will not be allowed to sell their rights to buy redeveloped units. The Construction Ministry said that once implemented, the toughened regulations would increase the supply of new apartments and dampen speculation. The stricter rules follow a round of anti-speculative measures that were initiated in May and designed to keep apartment prices from rising. The May 23 measures helped curb soaring home prices for a while. Since July, however, apartment prices have staged a sharp rebound, led by those in the Gangnam area of southern Seoul. The latest move targets the redevelopment market because the prices of old apartments to be rebuilt have fueled home price inflation. According to Dr. Apart, a price survey agency, the prices of nearly 9,900 apartment units in the Gangnam area jumped by more than 100 million won ($85,251) per unit in August alone. Experts say that redevelopment projects are the main culprit behind home price inflation because most of the new apartment supply in the Gangnam area comes in the form of reconstruction due to a lack of available, undeveloped land. In Seoul, 36 percent of the 521,150 new apartments offered over the last five years were rebuilt ones, while nearly 80 percent of the new apartments in the Gangnam area were actually redeveloped during the same period. Experts say that what inflates redeveloped apartment prices in the Gangnam area is builders' practice of offering newly-built apartments to existing owners at lower-than-market prices and making up the price differences by selling other units to new buyers at astronomical prices. Meanwhile, the National Tax Service said that it would launch tax probes Monday into 448 people who were suspected of having made speculative real-estate transactions using money from unclear sources. The tax bureau also plans to investigate builders and real-estate agencies that are suspected of having fueled apartment price hikes by selling homes at "outrageously high prices." (by Kim Hyun-chul)

From http://www.koreaherald.co.kr/ 09/06/2003

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Political Strategist Advocates Personnel Change in GNP

When Yoon Yeo-joon, a first-term lawmaker, was picked to head the majority Grand National Party's think tank last week, few party members raised objections to the nomination. This is because the party leadership said he was suitable for the top post of the Yeouido Research Institute, which mainly deals with election strategies for the party. Yoon has been widely known as a "strategist" in the political world. He stepped into party politics in January 1998, when he was environment minister for the outgoing Kim Young-sam government. Following his defeat in the 1997 December presidential election by former President Kim Dae-jung, opposition leader Lee Hoi-chang was searching for a political strategist, and his aides recommended Yoon. Yoon helped Lee tighten control of the GNP by replacing opponents to the opposition leader during the 2000 general elections. Lee's party succeeded in winning a majority position in the elections, but Lee retired from politics after his second unsuccessful run in the 2002 presidential polls. Ahead of the next parliamentary elections slated for April next year, Yoon is now calling for the replacement of the party's old guard with reform-oriented politicians to change the party's image as a group of aged people. His call comes at a time when the rivalry between young liberals and old conservatives over generational change has been rocking the nation's largest political group. Junior lawmakers call for the retirement of old politicians: Their targets are those who basked in favors during past military regimes from the 1960s to the 1980s. Yoon stressed on a fair system to sort out old politicians. "Even those who participated in military regimes contributed to the country," he said in a recent interview with The Korea Herald. Yoon, a reporter-turned-lawmaker, however, underscored the need for the GNP to carry out a sweeping personnel shake-up in order to win the next national elections. "No one can deny the need to liquidate old-fashioned politics, (characterized by) nominees buying their tickets with bribes, regionalism, and chairmen exercising authoritarian party rule," Yoon said. But Yoon denied any role in the upcoming party's nomination process for the general elections, saying, "Only party members and the public will select parliamentary candidates." On the possibility of Lee Hoi-chang returning to politics, Yoon indicated that the former party leader will not make a political comeback, in accordance with his promise to the public. "Former party leader Lee doesn't make promises he cannot keep, and makes good on promises once he makes them," Yoon said. Yoon explained that general elections in Korea are retrospective, in the sense that they evaluate the incumbent government. Despite Roh's approval rating of below 40 percent, Yoon was wary of any complacency, as he said the election environment can never be easily predicted. He rather said, "the manifestation of change or will to change for political reform will determine the winner of the national elections."

From http://www.koreaherald.co.kr/ 09/14/2003

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MONGOLIA: Training on Management to Be Held

The Education, Culture and Science Ministry has organized a training entitled '' Function Management to raise Teachers' Profession ''. The Ph. Doctor. B. Erdenesuren made a report named '' State Policy on Improving Teachers' Profession '', the Ph. Doctor. J. Narantuya '' Methods of Management of Training Organization '' and the Japanese scholar, T. Koide -- ''Training Structure and Current Situation of Japanese Teachers' Profession Improvement ''. Also they organized a group work with the theme of '' Plan to raise Teachers' Profession in 2003-2006 '' and exchanged views on it.

From http://www.montsame.mn/ 09/11/2003

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INDONESIA: Official Detained, Development Delayed

The arrest of Mentawai administration secretary Ridwan Siritubui in the province of West Sumatra, who is charged in a corruption case, has been blamed for the suspension of development programs in the newly created regency. "It's really worrying. If Mentawai is not managed well from now, local people will surely be increasingly left behind," M. Bakri Tasirebeb, chairman of the Mentawai People's Consultative Body (BMMM), said on Tuesday. He said the disruption in development projects in the regency was related to the detention by the West Sumatra Prosecutor's Office of Ridwan who is in charge of many local development projects. Citing an example, Bakri said the planned building of Rokot Airport, which is a vital transportation facility for Mentawai -- around 180 kilometers from the West Sumatra capital Padang, had been called off. The plan to build a military district office in the Mentawai capital of Tua Pejat also remains unclear, he said. Also the development of a public hospital, which was planned to be finished by this year, was halted. "Other vital projects, such as the development of asphalted roads, have also suffered a similar fate," Bakri said. Bakri urged West Sumatra Prosecutor's Office head Holius Hosen to suspend the detention of Ridwan to facilitate the Mentawai development programs. Support for the temporary release of Ridwan came from the Mentawai regent, the regency's legislative council speaker, the local branch of the Indonesian Chamber of Industry and Commerce (Kadin) as well as student groups. In response, Hosen said on Tuesday his office would consider accepting the demand for the suspension of Ridwan's arrest. Ridwan was arrested on July 9 as a key suspect in a graft case involving Rp 24 billion (US$2.8 million) from Mentawai's 2002 budget. Six other officers were also charged in the case.

From http://www.thejakartapost.com/ 09/03/2003

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Govt Berated for Budget Abuse

A legislator and an academic lashed out on Friday at the government and the House of Representatives for the morally reprehensible, and perhaps illegal, budget spending in the midst several crises. Aberson Marle Sihaloho of the Indonesian Democratic Party of Struggle (PDI Perjuangan) berated government and House leaders for lacking a conscience when it came to caring about the people's suffering as evidenced in the way they had spent trillions of rupiah of reserve funds on the military and other projects instead of natural disasters, which they are supposed to be used for. He was commenting on the controversial approval of reserve fund allocations by the House's budgetary committee. Following a long discussion, the committee allowed the government to take Rp 1.6 trillion from the fund to finance the war in Nanggroe Aceh Darussalam (NAD), and other things that it was not supposed to. The committee also approved the proposed usage of Rp 1.4 trillion to finance an extension of the military operation in Aceh and that of almost Rp 3 trillion to finance development projects conducted by the Regional Settlement and Infrastructure Ministry. "This is a violation the 2003 state budget law that says the reserve funds should be used for natural disasters and emergencies such as riots and drought," he told The Jakarta Post here on Friday. "What we are seeing now is that the government misuses the general reserve funds to finance activities outside its mandate and unbelievably, the budget committee approves these misuses," he said. He also lamented the government's unwillingness and lack of concern to pay adequate attention to the millions of people adversely affected by the current drought, the Acehnese refugees, and the millions of children who will be uneducated because they cannot afford government school fees. Of the Rp 1.6 trillion spent in the first phase, none was used to handle natural disasters. Aberson, also a member of the budgetary committee, accused other factions of colluding with the government to allow these irregularities. "Many projects with no relation to disasters are financed and not audited. The government and regional administrations don't offer public bidding for projects, so it is no secret that many legislators collude with regional heads," he lamented. Meanwhile, Revrisond Baswir, an outspoken economist from Gadjah Mada University said the use of the funds was "a vicious conspiracy." "This is not the first time the government and the House have betrayed the public with state funds. It happened before in the dubious settlement of the Bank Indonesian Liquidity support fund (BLBI) where taxpayers were given the bill," he said, referring to write-off of Rp 144.5 trillion (about US$17.6 billion) in emergency loans given out in 1997 and 1998 to a few tycoons. He said what they had done was administrative manipulation to cover excessive non-budgetary spending. Revrisond said there was little recourse for the public in the scandal as the House, which should keep the government accountable for such mismanagement had bowed down and joined in. General reserve funds in 2003 state budget Reserve funds Rp 8,239,570,000,000 A. Expenditures: 1. National Games Rp 25,000,000,000 2. Military operation in Maluku Rp 12,500,000,000 3. Military operation in NAD Rp 1,477,600,000,000 4. Handling of Iraqi crisis impacts Rp 27,000,000,000 B. Expenditure planning 1. Handling of natural disasters Rp 2,102,000,000,000 2. Rice-for-poor Rp 134,000,000,000 3. Handling of refugees Rp 161,000,000,000 4. Military operation in NAD Rp 1,452,400,000,000 5. Russian Sukhoi purchase Rp 698,130,000,000

From http://www.thejakartapost.com/ 09/06/2003

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Govt Paying 109,000 Absentee Civil Servants

A minister disclosed on Monday that the government has been paying salaries to about 109,000 civil servants whose whereabouts are unknown, indicating the poor state of data on public employees nationwide. State Minister of Administrative Reforms Feisal Tamim said that his office was investigating the case. He claimed that some of the people who drew a salary turned up at the office only on payday, while others no longer worked for the government but their former offices kept their pay packets. "We are still scrutinizing the data on all civil servants because we suspect that these people no longer work for the government. We never heard of such cases in the past," Feisal said. The minister said, for example, that many civil servants had left for overseas to study, but after completing their studies had decided not to return to their civil service jobs. "They continue receiving a monthly salary from the state after completing their studies even though they no longer work for the government," he said. By law, civil servants who study overseas are required to return to their jobs and remain at them for at least five years upon the completion of their studies. Only those who have worked as civil servants for at least five years are allowed to study abroad. The government has been paying more than Rp 111.7 billion a month (US$13 million) for the absentee employees. Each absentee employee is paid an average of Rp 1 million per month. The government employs four million civil servants, most of whom work in rural areas. Feisal said the 109,000 absentee civil servants had been detected during the updating of data on all civil servants in the government's attempt to revamp the bureaucracy, especially public offices in regions with a view to streamlining. "So far, we have updated data on 95 percent of civil servants across the country," he added. Feisal has complained several times that 60 percent of the country's civil servants are unproductive and unskilled and had proposed laying off 40 percent of them. His proposal was turned down due to a lack of funds to cover severance payments. Feisal said it was shameful that those who had received a better education had chosen to leave the civil service and work in the private sector. "It is also shameful that they have received a better education but are unwilling to dedicate themselves to give better services to the public," the minister said. Feisal said the government would continue to evaluate the performance of civil servants in an effort to encourage them to improve public services.

From http://www.thejakartapost.com/ 09/16/2003

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BURMA: SARS Control Working Committee Meets

The SARS Control Working Committee held the second quarterly meeting to review work and to coordinate future work programmes at the meeting hall of Ministry of Health on Pyidaungsu Yeiktha Street, Dagon Township this morning, with an address by Chairman of the Working Committee Deputy Minister for Health Dr Mya Oo. Also present on the occasion were the Chairmen of the SARS Control Working Sub-Committees, the Secretaries and members, the medical superintendents and physicians. In his address, Deputy Minister Dr Mya Oo said that the instructions of Chairman of National Health Committee Prime Minister General Khin Nyunt given at the ninth meeting of the NHC will have to be implemented, adding task for controlling and monitoring of SARS is meeting with success. Continued efforts are to be made with added momentum. In case of recurrence of SARS, the sub-committees are to take the respective measures for control of SARS. Knowledge about SARS are to be given to the public through mass media and school health activities. Preventive measures are to be taken in anticipation of influenza that occurs in the cold season. Next, the Secretary of the Committee reported on tasks being implemented by the Working Committee in the first three months, followed by a general round of discussions. The meeting ended with the concluding remarks by the deputy minister.

From http://www3.itu.int/ 2003/09/17

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PHILLIPINES: 'Leadership Crisis' in RP

Saying that the country is suffering from a "crisis of leadership," a Church leader on Thursday scored politicians for engaging in endless squabbles instead of looking into the welfare of their constituents. Presiding over a Mass at the St. Ignatius Cathedral in Camp Aguinaldo Thursday, the Auxiliary Bishop of Manila, Socrates B. Villegas, stressed in his homily the confusion prevalent among the citizenry as a result of latest political events, particularly the controversy involving the President's husband, Jose Miguel Arroyo. Politicians, according to Villegas, should emulate the biblical good shepherds, "who lead their flock to green pastures, where they can develop, grow and live in peace." "The crisis of our country today is the crisis of leadership. Looking at our country today, we can sometimes feel that there is a short supply of general loving and caring. We usually expect this kind of concern for our welfare from our leaders. It is they who are tasked to show the primary, and the most, concern. That is why they are leaders," Villegas said. Villegas added: "The worst that a shepherd could do to his flock is to lead them astray, away from the sources of their food and water, into the wilderness where they could be prone to hunger and to the attack of wolves and other wild animals." Instead of uniting the citizenry, Villegas said the politicians, through their selfish politicking, are becoming one in causing massive division among the people. "These are not true shepherds, true leaders, and thus we, in our country, are at a loss as to who to follow," he said. Without directly mentioning names, Villegas alluded to opposition senators when he said that the shepherds "are babbling, squabbling, quibbling" among themselves over who makes the most sensational exposé. Sen. Panfilo M. Lacson, in two privileged speeches, disclosed the alleged secret multimillion bank accounts of the President's husband, which is now the subject of an exhaustive Senate investigation. "The shepherds of our country are scattering the flock with the noise of self-interest, of vested interest, of selfish politicking, because for them to divide is to conquer," Villegas said. In his homily, Villegas noted his greatest fear: that the youth is beginning to think that these politicians are their shepherds. He also expressed sympathy with the military when he said that a soldier's job becomes meaningless "especially when you are fighting the enemy within, and not without." （by Karl B. Kaufman）

From http://www.manilatimes.net 09/12/2003

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Senate Free From Restraint, Claims Palace

Malaca?ang will not intervene in the Senate inquiry into the Jose Pidal accounts, Secretary Gabriel Claudio said Saturday, denying the allegation of Sen. Sergio Osme?a III that the Palace is pressuring senators to stop the probe. Presidential spokesman Ignacio Bunye agreed, saying President Arroyo respects the Senate as an independent body and leaves it to the chamber to resolve the issue. At a press conference Friday Osme?a said Malaca?ang is making a "fast break and man-to-man guarding" to pressure the Senate into stopping its investigation into the charge of Sen. Panfilo M. Lacson that the President's husband, Jose Miguel Arroyo, had maintained questionable bank accounts under the fictitious name "Jose Pidal." Mr. Arroyo denied ownership and pointed to his brother, Ignacio "Iggy," as the real Jose Pidal. Iggy, however, refused to provide details of his alleged ownership, invoking his right to privacy. Osme?a said he had received calls from Malaca?ang officials urging him to stop the Senate investigations and let the courts take over. "Senator Osme?a must be fair and forthright. If he claims officials from Malaca?ang called him to seek the termination of the Senate hearings on the Pidal case, he should name them," Claudio said. Osme?a has said he would not name the officials, because they would deny it anyway. Claudio said that as the President's legislative adviser and liaison officer, he should be the logical person to get in touch with the senators on matters about legislation and other official activities. The last time he talked to Osme?a was in the afternoon after Iggy testified in the Senate blue-ribbon committee hearing. Claudio said Osme?a called him on the telephone to remind him to facilitate the constitution of the House bicameral panel for the farmland-as-collateral bill. "That was all we talked about, and the conversation was very brief, so who are the Palace officials he was referring to?" Claudio asked. Bunye reiterated that the President would let Mr. Arroyo handle the Jose Pidal issue, since this is a private matter. "[The President's husband], Jose Miguel Arroyo, has already attended the Senate hearings, and we see no reason why the Senate should stop the proceedings," he said. He stressed, however, that before the Senate investigating committees dispose of the case, Senator Lacson must first prove his charges and not just provide photocopies. Sen. Joker Arroyo, chair of the blue-ribbon committee, said no proof has yet been produced to substantiate Lacson's charges. He has received no calls from Malaca?ang and declared that nobody could pressure him on the Jose Pidal issue. (by Efren L. Danao)

From http://www.manilatimes.net/ 09/14/2003

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THAILAND: Suriya Orders Port to Stop Rampant Bribery

Transport Minister Suriya Jungrungreangkit has ordered the port authority to clean up its house in three months or face a drastic corruption crackdown. The minister said he knew that bribe-taking was still rife at the Port Authority of Thailand. When he was still a businessman, he himself had to pay extra cash for quick service when he went to claim imported machinery from the PAT. During his visit to port authority headquarters yesterday, the minister showed a video recording of a port official taking a bribe. He ordered PAT executives to launch an investigation without delay. PAT must clean up its house within three months or all its corrupt officials would face arrest, Mr Suriya warned. ``After taking office nearly a year ago, I have received many bribe complaints. For instance, some port authority service staff would deliberately go slow so as to demand kickbacks. This must be corrected,'' he said. Port management must make sure no business operators would be forced to pay kickbacks, he added. The end of bribe-taking would help reduce cargo transport costs. Meanwhile, PAT labour unionists asked the minister to halt a plan to privatise the state enterprise. Mr Suriya said if the PAT management could improve its work efficiency the privatisation plan might be reviewed. The union also protested against Trailer Transport (1974) Co, housed in Thawit building located on port authority land in the Klong Toey area. The union said the company has refused to vacate the building despite the expiry of its lease since 1991. The firm had also failed to pay PAT more than 200 million baht in of rent and compensation, the port authority union said.

From http://search.bangkokpost.co.th/ 2003/09/16

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Cabinet Member 'S' Faces Probe

The anti-graft agency has started an investigation of "S", a Cabinet member, for allegedly receiving Bt30 million in kickbacks. The case was triggered by statements made during a Senate debate on the 2004 budget, National Counter Corruption Commission Secretary-General Klanarong Chantik said yesterday. In the last week's debate, Senator Prasit Pithoonkijja alleged that a minister with the initial S had received kickbacks in exchange for awarding a contract for a nine-storey building in the central region. Prasit was elected from Nakhon Sawan. Klanarong said the NCCC's investigation was aimed at establishing whether "S" had committed graft violations. Prime Minister Thaksin Shinawatra urged Prasit to submit evidence of any wrongdoing to him, promising to punish the culprit. "I don't see why Prasit has to cite an initial rather than a full name," Thaksin said. "I want the whole truth on the matter and not just hearsay." Thaksin said past allegations of corruption had often been based on rumours rather than evidence. He said politicians should not make groundless accusations in order to attract attention to themselves, because their comments tarnished the country's image. Thai Rak Thai Party MP Kriang Kalptinant said Prasit lacked the credibility to make graft charges as he had raised a number of false alarms in the past few years. "It is Prasit's style to make wild allegations by using initials to gain attention and then to retreat into the background without backing them up with evidence," Kriang said. The current Cabinet has three ministers with the initial S - Public Health Minister Sudarat Keyuraphan of the Thai Rak Thai Party, Labour Minister Suwat Liptapanlop of the Chat Pattana Party and Tourism and Sports Minister Sontaya Kunplome of the Chat Thai Party.

From http://www.nationmultimedia.com/ 2003/09/23

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VIETNAM: One-Door Rules Now Apply Across Country

Regulations for one-door administrative management, already tested in some cities and provinces, have been approved for use throughout Viet Nam by Prime Minister Phan Van Khai. The regulations - to become effective in 15 days from their publication - are designed to: Reduce cumbersome procedures; Combat corruption and any authoritarian attitudes among State officials and employees; and Further improve the effectiveness and efficiency of the country's administrative system. The regulations are part of the effort to substantially change State governance for the better and will affect relations between State administrative offices and the way in which they deal with either organisations or individuals. The one-door mechanism applies to all the activities of central, provincial and municipal administrative offices. It includes having applications and documents from either organisations and individuals dealt with by a single administrative entity. The new regulations require that all administrative procedures, fees and time tables are simple, clear, transparent and convenient for all. Provincial and municipal administrations are to observe the one-door mechanism when assessing all domestic and foreign investment projects, approving the local budget for capital construction, and licensing either production or business enterprises. They are also authorised to issue permits for the building of houses and certificates for house ownership and land-use rights and leasing as well as handling social policy-related matters. Urban, rural district and provincial town administrative offices will license household-based production and business enterprises, issue permits for housing construction, certificates for house ownership and land-use rights; residency registration, notary work and other such social affairs. Administrative offices of rural communes, urban wards and district towns will deal with affairs relating to housing construction, housing and land use, residency registration and notary work.

From http://vietnamnews.vnagency.com.vn 09/08/2003

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BHUTAN: Finance Minister to Attend World Bank / IMF Annual Meeting

The finance minister Wangdi Norbu and four other Bhutanese officials are scheduled to leave for Dubai, United Arab Emirates (UAE), to attend the annual world bank/international monetary fund meeting to be held from September 23 to September 25. The World Bank has been a major development partner of Bhutan and has received concessional loans for the education, forestry and communications sector with the IMF having provided technical assistance in the financial sector. Bhutan joined the IMF and World Bank in 1981.It is hoped that Bhutan would be included as a member of the international finance corporation (IFC) in the forthcoming meeting. Bhutan had applied for the IFC membership early this year. IFC is the largest multilateral source of loan and equity financing for private sector projects in the developing world.It seeks to bring together investment opportunities, domestic and foreign private capital, and experienced management. IFC participation is solely based on market conditions and does not require government guarantee for repayment.If the membership is approved, then it is expected to act as a catalyst for private investment, enhance investor confidence and attract other shareholders for business ventures in Bhutan.

From http://www.kuenselonline.com/ 09/18/2003

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SRILANKA: Development Boards to Improve Standards of Schools

The Government has made arrangements to form Development Boards to improve the standards of schools, and as a trial, 80 National Schools have been selected to form these Development Boards, said the School Education Minister Suranimala Rajapakse. He was addressing a meeting after laying the foundation stone for a new three storeyed building at the Sapugaskanda Visaka Balika Vidyalaya on Monday. The Education Ministry's Navodhya project will construct the building. He said the assistance of the people would be expected for the progress of these Development Boards irrespective of political parties, so that these Development Boards could help to improve the schools. It is hoped to implement this in schools through the island. Minister Rajapakse also said, even though the Government was prepared to assist the schools, the conflicts of the Local Government have prevented this. So far the Government has been seeking the help to overcome this problem and to help them to continue with this. The Kelani Raja Maha Vihara Chief incumbent Ven. Kollupitiy Mahinda Sangarakkitha Thera, Zonal Education Director, Kelaniya Jayaweera Delpagoda, Principal Sapugaskanda, Visaka Balika Vidyalaya Mrs. D.L. Padmaseelee and Keerthi Indrajith also spoke.

From http://www.dailynews.lk/ 09/03/2003

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MALDIVES: Customer Service Training Programme for Government Employees Begins

A customer service training programme for government employees has begun. The programme is part of a series of training programmes aimed at government employees. This is the second such customer service training programme for this year. The objectives of this programme are setting customer service standards, improving service delivery, communication skills and handling of customer complaints in government offices. These training programmes are being conducted by the members of the Public Service Training Group, formed jointly by the Public Service Division of the President's Office and the Faculty of Management and Computing of the Maldives College of Higher Education. In addition to the two Customer Service Training Programmes that have been held in Male this year, similar programmes have also been held in five atolls.

From http://www.haveeru.com.mv/ 09/04/2003

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NEPAL: Home Ministry Ruling on CDOs' Evaluation

With the go ahead nod from the Prime Minister, who is also the home minister, the Home Ministry has issued directives relating to evaluation of the works performance of Chief District Officers (CDO). As per the 'Work Performance and Evaluation Directives 2060 BS approved by Prime Minister Surya Bahadur Thapa on Friday, CDOs will be punished and awarded on the basis of their job performance. The CDOs receiving a less than 50 per cent marks based on their duties on maintaining law and order and co-ordinating administrative and development endeavours of the government will be punished while the official who secures the highest points in performance evaluation will be awarded as the 'best CDO of the year'. The Regional Administration Office will carry out preliminary evaluation of the CDOs whereas the Home Ministry will be the final authority to evaluate their performance. According to a source at the Home Ministry, the preliminary evaluations will be based on different 50 parameters.

From http://www.kantipuronline.com/ 09/21/2003

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KYRGYZSTAN: President Lays Out Country's Major Goals

Speaking to the World Congress of Kyrgyz in the resort of Cholpon-Ata on 29 August, Askar Akaev laid out Kyrgyzstan's three major goals for the next stage of the country's development, akipress.org reported on 1 September. Those goals are to complete constitutional and administrative reform and the reform of the courts and the law enforcement system by 2010, creating the basis for a country that respects human rights. Next, Akaev said, will come reforms directed toward solving concrete social problems. By 2010, poverty in the country should be cut by half. The third goal is to lay the foundations for Kyrgyzstan to become part of the information age, a country with high technology and highly educated citizens. Akaev said these goals will not be achieved in the next five years, but the experiences of the country's first 12 years of independence have shown that there are no problems that are insurmountable. BB (by edward weihman)

From http://www.eurasianet.org/ 09/02/2003

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KAZAKHSTAN: Government Holds NGO Grant Competition

The Kazakh government is holding a competition among nongovernmental organization for grants funded by the Ministry of Culture, Information, and Public Harmony, khabar. kz reported on 3 September. On that day, independent experts began evaluating the 109 grant applications submitted, including proposals to disseminate legal information in rural areas, to monitor the environment, and to create a center to monitor elections. According to khabar. kz, this is the first competition among NGOs for government grants held in Kazakhstan. A representative of a Pavlodar women's group was quoted as saying the competition represents a big step on the part of the government toward establishing a more constructive relationship with Kazakhstan's nongovernmental organizations. Kazakhstan reportedly has about 3,500 officially registered NGOs, although NGO sources say only about half of them are active. BB

From http://www.rferl.org/ 09/04/2003

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New Mechanism for the Transfer of Funds to the National Fund

The draft budget code "introduces a new mechanism for the transfer of funds to the National Fund, by which all official transfers, being a source of the National Fund establishment, will be made directly from the national budget", - Natalia Korzhova, vice minister of economy and budget planning, said today, on 4 September, speaking at an open session of the committee for legislation and court reform. Besides, according to the vice minister, the draft law "proposes to establish volumes of official transfers for three years so that the maslikhat could have resources for the region in the case that the income part is overfulfilled for 3 years". "The region will be able to make certain manoeuvres and direct money received apart from the planned incomes for the organisation of higher quality healthcare and education", - she stressed that it was "a new phenomenon in the budget relations". The draft law proposes to establish a vertical system of interior control over the execution of national and local budgets. According to N. Korzhova, when the budget code is introduced, norms regulating budget relations will be brought in order, the number of normative and legal decrees will diminish, a reduplication and a contradiction will be excluded from the current budget law. Besides, the authorities of budget process participants will be clearly defined, the stability of budget relations provided, the system of control will be developed and results and efficiency of budget funds spending will be increased. Nursultan Nazarbayev, president of RK, announced that the draft budget code of RK was a priority.

From http://www.gazeta.kz/ 09/04/2003

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TAJIKISTAN: NGO Coalition Set Up in Tajikistan

A Civil Democratic Forum held in Dushanbe on 22 September under the sponsorship of the National Democratic Institute, a U.S. party-based foundation, ended with the setting up of a Coalition of Nongovernmental Organizations, Asia Plus-Blitz reported on 23 September. The report quoted participants at the forum as saying the objective of the coalition is to expand the role of NGOs in the process of democratization, including the independent monitoring of elections. The Tajik coalition is patterned on a similar NGO coalition in Kyrgyzstan. Two representatives of the Kyrgyz Coalition for Democracy and Civil Society -- coalition founder Tolekan Ismailova and coalition member Dinara Ashurkhanova -- attended the Tajik forum to explain how their association works. More than 60 members of Tajik NGOs, Tajik journalists, and representatives of international organizations participated in the forum. BB (by Timur Onica)

From http://www.eurasianet.org/ 09/24/2003

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UZBEKISTAN: IFC's Leasing Initiative Holds Seminars for Uzbek Lessors

International Financial Corporation′s Central Asia Leasing Project Development in Central Asia organised seminars entitled "Leasing as a tool to support development of small and medium business in Uzbekistan" and "Financial analysis of leasing operations" on 3, 4, 5 and 8 September. After the President of Uzbekistan signed a Decree "On measures of further stimulation of leasing development" on 28 August 2002, a number of new leasing companies and commercial banks started rendering leasing services. The seminar on leasing as a tool to support small and medium business, held on 3-4 September, was attended by the new participants of the Uzbek leasing market like Asaka Bank, UzPromStroyBank (Uzbek Industrial and Construction Bank) and two new leasing companies. The seminar participants considered such issues as leasing basics, legal, accounting and taxation aspects and methods of analysing of financial conditions and business plans of potential lessees and others. One-day seminars on financial analysis of leasing operations, organised on 5 and 8 September, was designed for lessors that have worked on the market for some time. Representatives of such commercial banks as UzJilsberBank (Uzbek Housing Savings Bank), Pakhta Bank (Cotton Bank), Ipak Yoli Bank and others, as well as the Business Fund and Small Entrepreneurship Assistance Fund (SEAF) and Uzinvestproyekt (Uzbek Investments Project) engineering company participated in the event. According to IFC representation in Uzbekistan, experts of PriceWaterHouseCoopers Italy were invited as lecturers. IFC′s leasing development project is part of the corporation′s technical assistance programme, which aims to promote leasing as a unique investment facility and an important tool of medium- and long-term financing of enterprises in many countries. The project was launched in January 2002 to render technical assistance to creation of favourable investment climate in Central Asian states for further development of leasing services. The initiative is carried out at financial support of the Swiss Secretariat for Economic Affairs (seco). Organisation of trainings and seminars on different aspects of leasing is one of the main parts of the project. The project′s education programme is aimed at attraction of businesses, financiers and state structures to leasing development. About 1,620 specialists have been trained in Uzbekistan during the project′s activity.

FROM http://www.uzreport.com/ 09/11/2003

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NZ, Australia to Discuss Relaxing Rule of Origin Thresholds

The Australian and New Zealand Governments have agreed to review the rules of origin provisions of the closer economic relations pact - an area of the 20-year-old agreement thought to be showing its age. The rules of origin require 50 per cent local content in order for goods to qualify for tariff-free entry into the other CER partner. But since that threshold was set globalisation has tended to increase the imported content of manufactured products. Trade Minister Jim Sutton and his Australian counterpart Mark Vaile said that as well as the overall review of the regime, due to be completed in June next year, officials had been given the task of drawing up "incremental improvements". One would ensure that imported intermediate goods would be "appropriately" disregarded from the total cost of the finished good for the purposes of calculating local content. Statisticians define intermediate goods as those that are used up or transformed in industrial production processes. Reducing the denominator of the rules of origin ratio in this way would make the threshold easier to meet. A joint Customs committee will be set up to ensure consistency in the way both countries administer rules of origin. The ministers emphasised the need for consistency in the treatment of outsourcing and equitable treatment of integrated and outsourced manufacturing operations. "It's about time," said Business NZ chief executive Simon Carlaw. But he warned that the review of tariffs under way in New Zealand, impacting particularly on the textiles, clothing and footwear sector, had the potential to create a new rules of origin problem. If New Zealand moved to reduce tariffs in that sector while Australia was more circumspect its textiles could have access to our market while the reverse would not apply. (by Brian Fallow)

From http://www.nzherald.co.nz/ 09/01/2003

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AUSTRALIA: E-tolls Spread, Fares Jump in Transport Shift

Most country passenger rail services could be axed, pensioner fares increased and parents slugged $30 a year for school bus passes under a plan that envisages the biggest shake-up to NSW transport in decades. Any rail services that can be more cheaply and effectively replaced by buses - such as those to Armidale and Murwillumbah - could be scrapped under the radical options paper to be released by the Carr Government today. In Sydney, the costly Manly