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BPM- Zone 1- Asia Reports 1 Week # 89-90

SOUTH ASIA

No.89 BUSINESS AND POLITICS IN THE MUSLIM WORLD

South Asia Ghashia Kayani

Weekly Report: from 11 October 17 October 2009 Presentation: 21 October 2009.

Summary: In bangladesh at political front Prime Minister and ruling Awami League president Sheikh Hasina, and leader of the opposition and BNP Chairperson Khaleda Zia have agreed to attend the anti-poverty rally at Bangabandhu International Conference Centre. Amid huge table-thumping, parliamen passed a bill in about five minutes on lifetime security for independence architect Sheikh Mujubur Rahman's surviving family members, which includes Prime Minister Sheikh Hasina, her sister Sheikh Rehana and their children. At social front Prime Minister Sheikh Hasina asked the Ministry of Education to work on forming a trust fund in an effort to ensure free education in the primary and secondary level. At economic front Chairman of the Power Development Board (PDB) ASM Alamgir Kabir said the government has no option but to raise the electricity tariff to avert bankruptcy of the public companies in the business." Asian Development Bank (ADB) will provide Ban-gladesh with a credit of US$744 million to help the country overcome the impact of global economic crisis and implement public policy reforms. At geo-strategic front Government alert on Myanmar border troop buildup. In Srilanka at political front The proposed Vote on Account has been approved by the Sri Lanka’s Cabinet, Mass Media and Information Minister Anura Priyadarshana Yapa revealed, at the weekly press briefing which was held at the Government Information Department to reveal the Cabinet decisions. Sri Lanka has been unanimously elected for the Chairmanship of the Asian region at the 55th Annual General Conference of the Commonwealth Parliamentary Association which held from 28th September to 06th October in the City of Arusha in Tanzania. Sri Lanka President Mahinda Rajapaksa being greeted by covering with silk shawl Tamil Nadu MPs expressed satisfaction over the measures taken by Sri Lanka to resettle the IDPs in the Northern province. At social front The Texus Linen Private Limited was granted investment approval by the Board of Investment (BOI) Sri Lanka to commence operations immediately. At economic front The World Bank’s Investment Climate Advisory Service ranks the Board of Investment (BOI) of Sri Lanka, as the best in South Asia for investor promotion and facilitation, BOI Chairman Dhammika Perera told the media yesterday at the Government Information.At geo-strategic front The Democratic Party of Japan assures continuous support to Sri Lanka. In Nepal at political front President hopes that new constitution will help build a just society, vows to fight against poverty. The three major political parties - the Unified CPN (Maoist), Nepali Congress (NC) and CPN-UML- on Thursday agreed to form a committee to prepare a common resolution motion to bail the country out of the current political deadlock. At social front Eight more cases of pandemic influenza H1N1 (A) known as swine flu have been detected in Nepal. At economic front A government drive


to increase the number of poor Nepalis with legal identity documents, which are required to gain access to essential benefits and services, is to receive support from the Asian Development Bank (ADB).A $2 million grant from the ADB-administered Japan Fund for Poverty Reduction (JFPR) will fund awareness raising programs and intensive registration campaigns, states a press statement released by ADB. At geo-strategic front Chinese top political advisor vows to enhance ties with Nepal, dubs Dahal's visit 'positive and far-reaching'. In Bhutan at political front In the rush to endorse the bill, contradictions have emerged, further delaying LG electionsLocal Government Act 2009 19 October, 2009 - The election commission of Bhutan (ECB) has said that the current problem with the local government act 2009 could have been avoided if lawmakers and the government had heeded their concerns over flaws in the act before it was endorsed. At social front Three people were killed and two critically injured when the truck they were traveling in went off the road on the way to Phuentsholing from Thimphu. At economic front The economic affairs ministry has initiated a series of regulatory reforms to create a more enabling environment for business. One of them is drawing up an Enterprise Act that will require all types of businesses, where micro or large, to register and give recognition to various types of enterprises. In Myanmar at political front Myanmar’s prime minister, General Thein Sein, will attend the annual Association of Southeast Asian Nations summit in Thailand this week Detained Burmese democracy icon Aung San Suu Kyi met her legal counsels and went over plans to appeal at the High Court. At economic front China and Myanmar agreed to work together to ensure stability along their border, state media said, after violence erupted on the Myanmar side in August that pushed thousands of refugees into China. At geo-strategic front The Indian Ministry of Home Affairs has directed the Assam Rifles, a paramilitary force based in the North-eastern region, to move closer to the India-Burma border and to intensify operations in curbing illegal activities, including insurgency along the borderIndian. Detailed news report: Bangladesh: Political: • Hasina, Khaleda to be on the same dias tomorrow • Father of Nation Family Members Security Bill passed by Parliament Social: • PM asks ministry to form trust fund to make education free Economic:

• BD to send 5 lakh job-seekers abroad by yearend • Power sector needs $ 10 b investment to get rid of load shedding: PDB • DSE turnover hits Tk 11b mark in three months • ADB approves $744m credit to Bangladesh


Geo-strategic: • Government alert on Myanmar border troop buildup: Tuku Hasina, Khaleda to be on the same dias tomorrow Prime Minister and ruling Awami League president Sheikh Hasina, and leader of the opposition and BNP Chairperson Khaleda Zia have agreed to attend the anti-poverty rally at Bangabandhu International Conference Centre (transcending their usual bitter political animosities.A 3-day countrywide programme has been chalked out, including the Anti-poverty Rally, first of its kind, to stage the orchestrated campaign from Friday to Sunday (Oct 16-18) to mark the International Poverty Alleviation Day on Saturday.Bangladesh Parliament, All-Party Parliamentary Group (APPG), the Govern-ment of Bangladesh, and People's Empowerment Trust (PET) with the support of the United Nations Millennium Campaign (UNMC) have organized the mega-event. Speaker Abdul Hamid, also chairperson of the newly formed Anti-Poverty Campaign National Committee (APCNC), said synchronized calls would be made to the countrymen by the two top leaders of the two main political parties of the country Saturday from a same dais for fighting against poverty. The theme of the Anti-Poverty Rally is "Jatiya Oikya Rukhbe Daridra (National Unity will Face Poverty)"Speaker Abdul Hamid, who will preside over the event, will administer oath at the national-unity meet at BICC when all in the assembly, including PM Sheik Hasina and ex-PM Khaleda Zia, will pronounce the oath all together, the reporters were told. Chief Whip Abdus Shahid and Opposition Chief Whip Zainul Abdin Farroque, both co-chairpersons of the national committee, also spoke at the press conference.Replying to a question, Speaker Hamid said his initiatives and efforts to bring back the boycotting opposition BNP in parliament were on and would continue until they come back to the House. Father of Nation Family Members Security Bill passed by Parliament Amid huge table-thumping, parliamen passed a bill in about five minutes on lifetime security for independence architect Sheikh Mujubur Rahman's surviving family members, which includes prime minister Sheikh Hasina, her sister Sheikh Rehana and their children. State minister for home Shamsul Haq Tuku proposed adoption of the bill at around 5:15pm. It was passed by voice at around 5:20pm after adoption as Tuku urged the House to clear the bill. Hasina, also leader of the parliament, was present during the passage. Home minister Sahara Khatun tabled the controversial Father of the Nation Family Members Security Bill 2009 in parliament on Oct 5, and the House sent it to the standing committee for further scrutiny. The standing committee on Oct 11 okayed its recommendations in 10 minutes. The law will stipulate the government to provide them with protection by Special Security Force and accommodation wherever they want. Rehana along with her children live in London. The Awami League government has said the law is needed as Hasina, Rehana and their family members face threats to their


security. The main opposition BNP, now boycotting parliament, has termed the bill "unprecedented" anywhere in the world.Hasina's father and Bangladesh's founding father Sheikh Mujibur Rahman along with most of his immediate family were assassinated in a military putsch on Aug 15, 1975. The previous Awami League administration passed a similar bill in June 2001 giving Hasina and her sister special security. The subsequent BNP government coming to power in Oct 2001 repealed the bill in December of that year. PM asks ministry to form trust fund to make education free Prime Minister Sheikh Hasina asked the Ministry of Education to work on forming a trust fund in an effort to ensure free education in the primary and secondary level. "I want to make education free to ensure that nobody is deprived of education," she was quoted to have told a meeting of the Executive Committee of the National Economic Council (ECNEC) at the NEC conference room.The ECNEC chairperson, Sheikh Hasina, presided over the meeting that approved five development projects of Tk 1,486 crore, including a Tk 688 crore secondary education stipend project (SESP). Two other stipend projects are already in operation. Replying to a question at a press briefing after the meeting, Planning Secretary Habibullah Majumder said the Prime Minister has asked the Education ministry of making stipend for school students a permanent arrangement instead of the existing temporary ones.He said that the Prime Minister advised to pool all the funds from different projects dedicated to stipend for school students and form the trust fund so that the primary and secondary education could be made free.Of the three-year (2009-12) stipend project approved Tuesday, Tk 237.59 crore would be spent during the current fiscal year for poor students of 305 upazillas in 56 districts. "Both the amount of stipend and the number of beneficiaries have been increased under the project," said the Planning Secretary. He said the meeting also approved a project of Tk 241 crore to construct 139 new food godowns at 76 upazillas in 15 districts of Rajshahi Division during the 2009-11 periods to increase food storage capacity and facilitate emergency stock.Of the godowns, 81 will be of 1,000 ton capacity and the rest 58 will be of 500 tons each, making a total storage capacity of 110,000 metric tons. Around 70 percent of the country's annual food procurement target comes from the northern region of the country, according to a document placed at the meeting.

BD to send 5 lakh job-seekers abroad by yearend

Bangladesh is going to send some 5 lakh job-seekers abr-oad by this yearend, as new overseas job markets are being found out by the government. Expatriate Welfare and Overseas Employment Min-ister Engr Khandaker Mos-harraf Hossain said on Thursday, sounding a note of warning against any fraud on part of the manpower exporters."Of them, Saudi Arab will take some two lakh Bangl-adeshis after the beginning of their six mega-city projects and Iraq take more than 1 lakh," the Minister told a meeting at the


city's Bureau of Manpower, Employment and Training (BMET) building.Labour and Employment and Expatriate Welfare and Overseas Employment Mi-nistry organized the view-exchange meeting with Sramik-Karmachari Oikya Parishad (SKOP) leaders.State Minister for Labour and Employment Munnujan Sufian, BMET Director-General Khurshed Alam and SKOP leaders Shah Abu Zafar, Abdul Matin Master and Roy Ramesh were among others present at the meeting. Khandaker Mosharraf Hossain, also Labour and Employment Minister, said the government has taken a move to formulate a complete lobour-migration framework to curb illegal migration.He said in the last ten months, some 42 thousand labourers returned from abr-oad after completing their approved job tenures."Not a single labourer was made to return forcibly during the last 10 months," Mosh-arraf Hossain added. Terming manpower export a boom-sector, the Expatriate Welfare and Overseas Employment Minister said the government would take stern action against manpower businessmen if they tried to spoil the sector by doing any malpractice or illegal competition. "The government has made a move to sign an agreement with its labour-market countries to settle a minimum plane fare and other facilities with Bangladesh," the Minister told the leaders of the labour coalition.The Minister said Ban-gladesh will export its green vegetables to the expatriates under government-declared 'One Home, One Farm' project to promote local production on the international market. About the Bangladesh Labour Act 2006, the he said the law will be passed within six months after consulting stakeholders to ensure the proper labour rights and minimum wages.

Power sector needs $ 10 b investment to get rid of load shedding: PDB Chairman of the Power Development Board (PDB) ASM Alamgir Kabir said the government has no option but to raise the electricity tariff to avert bankruptcy of the public companies in the business."We have no option but to rationalizing the tariff, or else, our companies will become bankrupt," he told a workshop organized for journalists at the PDB headquarters.A petition of the PDB seeking permission to raise the electricity price by 24.31 percent at the retail-consumer level remains pending with the Bangladesh Energy Regulatory Commission (BERC).However, BERC will announce its decision by January next as it already held a public hearing on the issue. All the stakeholders, including business bodies, vehemently opposed the move. Alamgir Kabir said the state-owned body has to suffer a loss by Tk 0.24 per unit at the distribution level and Tk 1 per unit at the generation level. He told the journalists that the government moved to install a number of power plants with 530 MW-capacity each on rental basis by the private sponsors. The move was undertaken as an immediate measure to minimize the chronic power crisis.The PDB will purchase electricity from the plants at a relatively higher rate which will ultimately lead to increased losses. "To come to a breakeven point, we have to increase electricity tariff at least." He said the government has moved to add some 3,547 MW of electricity to the national grid by 2014 to bring the country to a zero load-shedding level.A good number of power plants will be set up in both the private and public sectors, and it will need about US$ 10 billion to invest in the power sector under short, medium and long-term plans. Of the amount, $ 7 billion will require to be invested in generation segment while the rest $ 3 billion in transmission and distribution segments. Speaking on the occasion, State Minister for Power and Energy Enamul Haque said the


government will maintain transparency in the power plant installation process.Power secretary Abul Kalam Azad said the media should play a positive role in motivating the people about the necessity of power tariff rationalization. DSE turnover hits Tk 11b mark in three months The turnover at Dhaka Stock Exchange (DSE) crossed Tk 11 billion on Tuesday, reaching the level of high transactions in over three months.It stood at Tk 11.03 billion during the day's trading, making the bourse's second highest level after Tk 11.49 billion recorded on July 2 this year. Stockbrokers said the investors had to pay higher prices for shares, causing increased turnover. Most shares registered gains on the day as investors took position on profit expectation as the market went through price correction Monday, they added. Of the total 239 issues traded on the day, 190 registered gains and only 49 incurred losses, dragging the DSE benchmark index (DGEN) to its new high of 3,280 points, with a gain of 43 points or 1.34 percent over previous day's 3,237 points.The All Share Price Index (DSI) rose 39 points or 1.43 percent to close at 2,750 and the DSE-20 of selective shares increased 44 points or 1.93 percent to close at 2,305 points. Bextex, Beximco, Jamuna Oil, Navana CNG, Titas Gas, Makson Spinning, Beximco Pharma, Meghna Petroleum, S Alam CRST, and Intech Online were the turnover leaders in terms of value. The day's volume leaders were Bextex, Aims 1st Mutual Fund, Makson Spinning, Intech Online, Beximco, Goldenson, Beach Hatchery, Quasem Dry Cell, Navana CNG and Jamuna Oil. Legacy Footwear, Intech Online, Miracle Industries, Dulamia Cotton, Desh Garm-ents, Quasem Dry Cell, Al-Haj Textiles, Sino Bangla, Gulf Foods and BD Welding were the top gainers of the day. ADB approves $744m credit to Bangladesh Asian Development Bank (ADB) will provide Ban-gladesh with a credit of US$744 million to help the country overcome the impact of global economic crisis and implement public policy reforms. ADB's Board of Directors at its meeting in Manila on Tuesday approved a credit of US$500 million under the "countercyclical support facility (CSF)" and three separate loans totaling US$244 million under the public expenditure support facility (PESF), according to a message received here on Tuesday. The $500 million CSF loan is to support the efforts to mitigate the worst effects of the global economic crisis in the short term and to continue the country's development programs. The three PESF loans ($244 million) are to support measures to introduce economic and social policy reforms essential for achieving higher and more inclusive long-term growth and strengthening social safety net programs. "The CSF loan will provide crucial support to the Government as it acts to stimulate Bangladesh's economic recovery and push ahead with its social safety net programs to cushion the impact of the crisis on the poor and vulnerable while maintaining macroeconomic stability," said Kunio Senga, Director General of ADB's South Asia Department. "The PESF is equally vital to help the Government deliver key public policy reforms to improve service delivery, enhance the efficiency of social safety net programs, especially for the poorest and most vulnerable, including women, promote public-private partnerships and improve the investment


climate, and strengthen management of scarce public resources." Sound economic management has enabled Bangladesh to weather major external shocks and sustain its growth momentum, even if it has not been spared from the adverse effects of rising petroleum and commodity prices, and natural disasters such as floods and cyclones, said a statement. Government alert on Myanmar border troop buildup: Tuku State Minister for Home Affairs Shamsul Huq Tuku ruled out reasons for getting worried but said there must be alert in place over the reported Myanmar security buildup on the frontier with Bangladesh.Talking to reporters at his ministry on Wednesday, he observed it is the duty of the government to protect the nation's sovereignty and maintain law and order in the country."The government is taking measures cautiously in this respect," said the State Minister for Home Affairs about the neighbor's reported military movements, apparently over the maritime-boundary disputes. The contentions compounded when Bangladesh is leasing out offshore hydrocarbon blocks to two foreign companies-one US and another Irish, for gas exploration within the country's territorial waters in the Bay of Bengal.On an intelligence report that some Myanmar Rohingyas sneaked into the country and might stage unwarranted incidents, he said the government would deal with the matter lawfully. Sri lanka: Political: • Sri Lanka: Cabinet Approval Sought for the Vote on Account • Commonwealth Parliamentary Association: Sri Lanka unanimously elected to

hold next Asian Region Chairmanship • President Rajapaksa to inaugurate the 8th Asia Cooperation Dialogue

Ministerial Meeting in Colombo • Tamil Nadu MPs expressed satisfaction over measures taken by Sri Lanka to

resettle IDPs Social:

• Sri Lanka to Manufacture Terry Towels and Bed Linen for Hospitality and Health Care Sectors

Economic:

• Sri Lanka’s BOI Ranks as the Best in South Asia Geo-strategic:

• The Democratic Party of Japan assures continuous support to Sri Lanka


Sri Lanka: Cabinet Approval Sought for the Vote on Account The proposed Vote on Account has been approved by the Sri Lanka’s Cabinet, Mass Media and Information Minister Anura Priyadarshana Yapa revealed, at the weekly press briefing which was held at the Government Information Department to reveal the Cabinet decisions.President Mahinda Rajapaksa as the Finance and Planning Minister of the United People’s Freedom Alliance government submitted the cabinet paper. The Cabinet spokesman Anura Yapa said that the Vote on Account will be tabled in Parliament by the middle of November.The Vote on Account is brought to finance the ongoing government expenditure for a period of four months commencing from the first day of January 2010, until the passing of the 2010 Appropriation Bill by a new government which succeeds after a parliamentary general election. The Vote on Account is brought to finance ongoing government expenditure for a period of four months commencing from the first day of January 2010, until the passing of the 2010 Appropriation Bill. Minister Yapa also said that the Vote on Account comprised of Recurrent Expenditure Rs.197, 478,109,000, Capital Expenditure Rs.158, 987,398,000 and advanced account activities of Rs.6, 222,467,000. Commonwealth Parliamentary Association: Sri Lanka unanimously elected to hold next Asian Region Chairmanship Sri Lanka has been unanimously elected for the Chairmanship of the Asian region at the 55th Annual General Conference of the Commonwealth Parliamentary Association which held from 28th September to 06th October in the City of Arusha in Tanzania.A delegation headed by the Minister of Power and Energy, John Seneviratne attended this conference held in Arusha, Tanzania. The Deputy Speaker Priyankara Jayaratne, Minister of Housing and Common Infrastructure Facilities Farial Ashroff, Edward Gunasekara MP, Namal Karunaratne, and Samansiri Herath were the other members of this delegation.The Chairmanship of the Commonwealth Parliamentary Conference is changed once in 3 year’s duration and Pakistan was functioning as the Chairman of this Association during the recent past. The explanations made by the Minister of Power & Energy, John Seneviratne and Minister of Housing and Common Infrastructure Facilities, Farial Ashroff that no considerable active programme was being implemented in the Asian Region Parliamentary Association during the recent past, Sri Lanka was awarded the Chairmanship at this 55th Annual General Conference of the Commonwealth Parliamentary Association” said Dhammika Dissanayake, Parliamentary Secretary of the Asian Region.Approximately 850 parliamentary representatives from 53 countries participated at this 55th Annual General Conference of the Commonwealth Parliamentary Association.The explanations made by the Minister of Power and Energy John Seneviratne on the success of the plans and strategies adopted by Sri Lanka in the recent past to combat terrorism, received much recognition at this Conference.Focus of this conference has been on violence against women, youth leadership, the future democracy and the prevention of terrorism. The Commonwealth Parliamentary Conference had its special admiration on the successful measures adopted by Sri Lanka to overcome


terrorism during the recent past.According to Dhammika Dissanayake, Parliamentary Secretary of the Commonwealth Parliamentary Association, it has brought a special glory to Sri Lanka when Housing and Common Infrastructure Facilities Minister, Farial Ashroff was appointed to represent the Women Empowerment of the Asian Region in this Conference and the appointment of the Speaker of Sri Lanka Parliament to the Executive Board of the South Asian Region added much grandeur. President Rajapaksa to inaugurate the 8th Asia Cooperation Dialogue Ministerial Meeting in Colombo Sri Lanka President Mahinda Rajapaksa will today inaugurate the 8th Asia Cooperation Dialogue (ACD) Ministerial Meeting in Colombo at the BMICH.Sri Lanka President Mahinda RajapaksaThe theme of this year’s meeting is ‘Spirit of Asia: Global Economic Recovery and Development Prospects’. Foreign Minister Rohitha Bogollagama will chair the Ministerial Meeting.A large number of Foreign Ministers, Deputy and State Ministers of Foreign Affairs from the 31 member countries are scheduled to attend this Meeting. Sri Lanka offered to host this prestigious grouping at the 6th ACD Ministerial Meeting held in Seoul, Republic of Korea and accordingly, at the 7th ACD Ministerial Meeting held in Astana in Kazakhstan, the member countries decided to hand over the Chair to Sri Lanka and to host the next Ministerial Meeting.Assumption of the Chair of the ACD is in addition to Sri Lanka holding the position of the Chair of the SAARC. Sri Lanka is also scheduled to chair the next G-15 meeting. It is perhaps the first time that Sri Lanka is holding the Chairmanship of three important international and regional organizations simultaneously. The Senior Officials Meeting of the ACD was held on 14th October 2009. Tamil Nadu MPs expressed satisfaction over measures taken by Sri Lanka to resettle IDPs Sri Lanka President Mahinda Rajapaksa being greeted by covering with silk shawl Tamil Nadu MPs expressed satisfaction over the measures taken by Sri Lanka to resettle the IDPs in the Northern province.The Tamil Nadu Parliamentarians, a total of 10 of them, who came to Sri Lanka on a fact finding mission, mostly about the Internally Displaced Persons, presently quartered in the welfare centres in Vavuniya, met yesterday Sri Lanka President Mahinda Rajapaksa and urged for the speedy resettlement of the IDPs, but they were also appreciative of the actions taken by the government so far, in this direction. Sri Lanka President emphasized that de-mining must be done first before any resettlement. The Tamil Nadu delegation thanked the Sri Lankan President for the invitation extended to them to visit Sri Lanka and appreciated the arrangements made for their visit and also the meeting with the President. With regard to discussions on a political settlement to the ethnic question, the President Mahinda Rajapaksa said that any settlement must be one that is accepted by all communities and by Sri Lanka's neighbor. This was the first time Sri Lankan President has openly said that the political solution has also to be satisfactory to ‘Sri Lanka's neighbor’ – which means India. The President emphasized the multiethnic nature of the Sri Lankan society referring to the 65% of Tamils who live in Colombo.The


delegation expressed fears about oncoming monsoon rains but they were assured that required steps have been taken to ensure that no hardships are caused to the IDPs.Senior advisor to the President, Mr. Basil Rajapaksa, MP, explained that within two days the crowding in the centres will begin to be reduced with increased resettlement. President also said that he is glad that the MPs came because it is important for people to assess the situation themselves as there were many misconceptions and false information being spread regarding Sri Lanka's IDPs. Sri Lanka to Manufacture Terry Towels and Bed Linen for Hospitality and Health Care Sectors The Texus Linen Private Limited was granted investment approval by the Board of Investment (BOI) Sri Lanka to commence operations immediately. The company is in the process of commencing operations in their plant in Panadura just 30 kilo meters away from Colombo.BOI Chairman Dhammika Perera at the agreement signing ceremony said that the Government of Sri Lanka has taken a policy decision to assist private sector companies which come forward to strengthen the country’s economy. The investment agreement signed with Texus Linen is a project to produce towels and bed linen for the local hospitality and healthcare industry and the BOI Chairman said that the project would cut the import cost of local hospitality and healthcare industry linen in a big way.The new business venture will be kicked off with an initial investment of Rs 35 million providing employment opportunities for 50 employees at the first stage. The Texus Linen hopes to double the number soon and they have also planned to offer value added services such as printing and embroidery of names, logos and designs as per the requirements of their clients. Sri Lanka’s BOI Ranks as the Best in South Asia The World Bank’s Investment Climate Advisory Service ranks the Board of Investment (BOI) of Sri Lanka, as the best in South Asia for investor promotion and facilitation, BOI Chairman Dhammika Perera told the media yesterday at the Government Information Department.The Chairman said that the BOI has been described as the only “Good” performing Investment Promotion Intermediary (IPI) in South Asia in the latest issue of Global Investment Promotion Benchmarking 2009.BOI having received a score of 64 out of 100 and has shown a remarkable progress out of 181 countries surveyed for the report. “Middle-income countries are showing immense progress in competing for mobile investment, particularly in Brazil, Botswana, Colombia, Lithuania and Turkey. Lower-income countries like Honduras and Sri Lanka, which offer strong facilitation services, are evidence that a country’s income is not linked to performance,” the BOI head added.Enterprise Development and Investment Promotion Minister Anura Priyadarshana Yapa speaking at the same press briefing said that Sri Lanka provides maximum facilities for the investment and they continue it as a government policy for the uplift of the


country’s economy. He also added that the World Bank’s ranking is a testimony to the various improvements made in recent years for expeditious and courteous investor facilitation and it is a major boost to Sri Lanka’s profile globally.BOI Chairman proudly said that the amount which the BOI has attracted in the last four years’ under the United People’s Freedom Alliance Government and President Mahinda Rajapaksa’s leadership exceeds the amount which the BOI had attracted in the past 27 years’ period from its inception. The BOI has succeeded in attracting US$ 2.8 billion in Foreign Direct Investment since 2006, as opposed to US$ 2.7 billion only, between 1997 and 2005. The report, Global Investment Promotion Benchmarking 2009, surveys the performance of national and sub-national IPIs in 181 countries, presenting one of the most comprehensive benchmarking tools ever. BOI’s Chairman Perera also pledged that he would study the present failures in the BOI facilitation system and by 2010 he would score 100 percent from the World Bank rankings. The Democratic Party of Japan assures continuous support to Sri Lanka Resettlement of Internally Displaced Persons (IDPs) is foremost on the Government of Sri Lanka’s agenda in the post-conflict phase, Foreign Minister Rohitha Bogollama said when he met with members of the All Party Parliamentary Delegation from Japan on 13th October 2009 at the Ministry.The delegation of Rules and Administration Committee of the House of Councillors, the National Parliament of Japan are currently in Sri Lanka on a two day good will visit, on an invitation extended by the Speaker of the Sri Lanka Parliament.Welcoming the Parliamentary delegation from Japan, the Foreign Minister recalled the historical links between Sri Lanka and Japan which date back to over a millennium and stated that these traditional bonds were developed have developed to be more valued political and economic ties during the latter part of the last century. Referring to the political process, Foreign Minister Bogollagama stated that the Government of Sri Lanka is fully committed to a political process that will lead to a lasting solution and devolution of power in a wider context. The Foreign Minister stated that the friendship with Japan was a “special one” and acknowledged that Japan continues to be a strong partner in Sri Lanka’s development process throughout the years. Foreign Minister stated that Sri Lanka is looking forward to engage with Japan in a more constructive manner with a view to enhancing the existing relations in areas of common interests, particularly in the field of investment.Referring to the longstanding relationship which exists between Sri Lanka and Japan, the Head of the Parliamentary delegation Mr. Shuji Ikeguchi, Member of Parliament representing the Democratic Party of Japan, stated that Sri Lanka has been included as a new focal point for Asia under the new government’s Foreign Policy and assured the continuation of development assistance. A representative from the Japan’s main opposition party, Liberal Democratic Party hailed Sri Lanka’s victory over terrorism after more than two decades and assured the Liberal Democratic Party’s support for Sri Lanka. While noting the concerns of some countries on human rights issues in Sri Lanka, the representative of the Liberal Democratic Party reiterated the party’s commitment to extend the same level of cooperation and support to Sri Lanka.


Nepal: Political:

• Prez hopes new constitution will help build a just society, vows to fight against poverty

• Big three form taskforce to give way out to political deadlock • Parties agree on flexible constitutional amendment procedures, but differ on

national symbols Social:

• Eight more cases of swine flu detected Economic:

• Govt to amend industrial, foreign investment policy • ADB pledges $ 2 million to give legal identity to poor Nepalis

Geo-strategic:

• Chinese top political advisor vows to enhance ties with Nepal, dubs Dahal's visit 'positive and far-reaching'

Prez hopes new constitution will help build a just society, vows to fight against poverty Chief of Army Staff (CoAS) Chhatra Man Singh Gurung (left) and immediate past president of Non-Resident Nepali Association Upendra Mahato jointly inaugurating a baily bridge constructed over Karra stream in Hetauda, Makwanpur, on Friday, October 16, 2009. Photo courtesy: DPR society through a new constitution while pledging commitment to achieve the millennium development goals chief among which is ending poverty."We are committed to build a just society through a new constitution. Let's all commit to achieve the millennium development goals not only for today but for every day," Dr Yadav said addressing a gathering of more than four hundred people including ministers, Constituent Assembly members, the diplomatic corps, UN Agency heads, media and civil society at Shital Niwas, the President's office.Those gathered at Shital Niwas were asked to stand up while the President read the pledge against poverty, "We are standing up today to express solidarity with people all over the world to fight against poverty and inequality. We want an end to poverty and inequality."He further said, "We want to create a society where mothers don't die while giving birth. Children will have the right to quality education. No one will die due to diseases. Overall environment justice and sustainable development will be ensured by conservation and proper use of natural resources. The decisions made by the policy makers will not be for their personal


gain but for the benefit of the poor and marginalized people as well."Speaking on behalf of the government of Nepal, Dr. Yubaraj Khatiwada, vice-chairperson of the National Planning Commission reiterated the government's commitment to end poverty in the country.He said that the government has taken efforts to streamline poverty alleviation in the national development planning process to meet the Millennium Development Goals.On the same occasion, the Resident and Humanitarian Coordinator of the UN System in Nepal, Robert Piper, addressed the gathering and highlighted the conscientious efforts of the UN system in adding value to Nepalis government's efforts in meeting the MDGs. Big three form taskforce to give way out to political deadlock The three major political parties - the Unified CPN (Maoist), Nepali Congress (NC) and CPN-UML- on Thursday agreed to form a committee to prepare a common resolution motion to bail the country out of the current political deadlock.The decision to draft the motion to be tabled at the legislature parliament was taken at the meeting between the three parties at the Parliamentary Party office of the UCPN (Maoist).The committee comprises Dev Gurung from UCPN (Maoist) and Yuvaraj Gyawali from CPN-UML while the NC is yet to select its member.Talking to media-persons after the meeting, Arjun Narsingh KC, who is also NC's spokesperson, said that the three parties are now closer to reaching a consensus on jointly addressing the present political deadlock.However, vice-chairman of UCPN (Maoist) Dr Baburam Bhattarai, who also participated in the meeting, said that the draft of the common resolution motion should mention as "unconstitutional" the President's move of reinstating former Army chief Rookmangud Katawal by overturning the decision of the erstwhile Maoist-led government to sack him.But the NC and UML are thoroughly against the Maoist demand, saying that it will be a disrespect of both the President and the Army if they include such language in the proposal. Parties agree on flexible constitutional amendment procedures, but differ on national symbols Lawmakers at the meeting of the Constitutional Committee (CC) of the CA demanded "easy and flexible provisions" to make amendments in the new constitution except those concerning its basic tenet and spirit. At the discussion on the constitutional amendment in the CC Thursday, lawmakers said that the flexible provisions will ease amendment procedure in the constitution except clauses pertaining to fundamental rights and press freedom.The lawmakers representing the spectrum of political parties said that a referendum can be held if any amendments needs to be made in the constitution regarding those two issues (fundamental rights and press freedom).Speaking at the meeting, Unified CPN (Maoist) leader Dev Gurung argued that the new constitution should not be drafted "very loosely" assuming that it should be flexible and not "very rigorously" also maintaining that it should be a precise document and hence unalterable.However, Nepali Congress vice-President and Parliamentary Party leader Ram Chandra Poudel said that his party won't tolerate provisions for amendments on the issue of republicanism, rule of


law and independent judiciary in the constitution.But we are in favor of easy provisions to make amendments in other issues pertaining the constitution excepts these three, he said.On the other hand, CPN-UML's leader Bhim Rawal said that the rights of the people should not be strictly regimented and that it needs to be defined anew with the changes of time.He further warned that the constitution might be a victim of 'status-quo' if a rigorous procedure is put in place for making constitutional amendments.On Wednesday, political parties differed over the issue of whether to retain or change the national flag, national song and national emblem. Eight more cases of swine flu detected Eight more cases of pandemic influenza H1N1 (A) known as swine flu have been detected in Nepal, the Health Ministry said Thursday.Ministry officials told journalists at a press conference organised in the capital that the flu has been detected in eight persons undergoing treatment in Kathmandu. Five of them are residents of Kathmandu, while three are from Chitwan.The samples were collected from patients undergoing treatment for flu in Bir Hospital, Patan Hospital, and Kanti Children’s Hospital.This is the first time swine flu has been seen within the community.Although, 36 swine flu cases were detected earlier, all of them were found in persons returning from foreign country and all of them have recovered fully. Govt to amend industrial, foreign investment policy With an aim to create investment-friendly atmosphere for Non-Resident Nepalis (NRNs) the government has decided to amend the Industrial as well as Foreign Investment and Technology Transfer Act.The draft of industrial policy was forwarded to cabinet on February 14 and the Foreign Investment and Technology Transfer Act was prepared on June 17.According to officials at the Ministry for Industry and Commerce, the industrial policy will be amended by giving priority to such provisions which will facilitate NRNs to invest in Nepal.Even though the ministry has not constituted a separate task force to amend the two different policies, it has assigned some officials to look after the amendment issue.The ministry has also initiated necessary discussion with stakeholders to determine the amendment module. It is understood while modifying the industrial policy, subjects like investment-friendly environment for NRNs, labour problem and small and medium scale industries will be accentuated. ADB pledges $ 2 million to give legal identity to poor Nepalis A government drive to increase the number of poor Nepalis with legal identity documents, which are required to gain access to essential benefits and services, is to receive support from the Asian Development Bank (ADB).A $2 million grant from the ADB-administered Japan Fund for Poverty Reduction (JFPR) will fund awareness raising programs and intensive registration campaigns, states a press statement released by ADB


on Wednesday. "The poor and vulnerable in Nepal have very little access to goods, resources, and opportunities such as social welfare benefits or free school textbooks, and one of the reasons for this is they don't have legal identity documents, such as birth, citizenship, migration, marriage, and death certificates," the statement quoted Jogendra Ghimire, counsel at ADB's Office of the General Counsel as saying. It is estimated that at least 75% of Nepal's population do not have a birth certificate, and that between 3 million and 5 million people eligible citizens have not acquired citizenship.An outdated and complex legislative framework, burdensome procedures, low awareness among government officials and the general public, high registration costs, discrimination, and low capacity have all contributed to the lack of legal documentation among the poor, according to the press statement.The ADB project will be implemented over four years in the districts of Kathmandu, Jhapa, Ilam, Bhaktapur, Latitpur, Palpa, Rupandehi, Mustang, Kailali, and Dang. It will aim to provide birth certificates and other identity documents to at least 80% of residents in the target areas, and ensure individual details are logged in a computerized civil registration system able to be accessed by relevant government departments. Registration training for civil servants and a public awareness campaign will also be conducted. Chinese top political advisor vows to enhance ties with Nepal, dubs Dahal's visit 'positive and far-reaching' The visit by Chairman of Unified Communist Party of Nepal (Maoist) Pushpa Kamal Dahal ' Prachanda' to China will have "positive and far-reaching" impact on relations between Nepal and China, said China's top political advisor on Monday. Jia Qinglin (R), chairman of the National Committee of the Chinese People's Political Consultative Conference (CPPCC), shakes hands with Chairman of Unified Communist Party of Nepal (Maoist) Pushpa Kamal Dahal 'Prachanda' in Beijing, capital of China, on Monday. Photo courtesy: Xinhua "Your visit to China will have positive and far-reaching impact on relations between the two countries as well as relations between the two parties," Jia Qinglin, chairman of the National Committee of the Chinese People's Political Consultative Conference (CPPCC) was quoted as telling Dahal at a meeting in the Chinese capital Beijing.Jia, who is also member of the Standing Committee of the Communist Party of China (CPC) Central Committee Political Bureau, further vowed to boost ties with Nepal, according to China's official news agency Xinhua.Jia said the relationship between China and Nepal has developed healthily with joint efforts of both sides since they established diplomatic ties."The two countries set an example for treating each other on an equal foot, friendly co-existence and mutually-beneficiary cooperation," he said.Jia also appreciated Nepal's firm support on issues concerning China's "core interests", saying China hopes relevant parties in Nepal could advance peace process."China is willing to work with Nepal in deepening substantial cooperation, enhancing party-to-party communication and pushing forward China-Nepal neighborly partnership," Jia said, adding that the UCPN-M will learn from the CPC's experience in governance through "inter-party exchanges to make joint contribution to our traditional friendship."


Bhutan: Political:

• Passed but flawed Social:

• Three killed in accident

• Bold plan to address nursing shortage Economic:

• Reforms to create a more enabling environment for business Geo-strategic: Passed but flawed In the rush to endorse the bill, contradictions have emerged, further delaying LG electionsLocal Government Act 2009 19 October, 2009 - The election commission of Bhutan (ECB) has said that the current problem with the local government act 2009 could have been avoided if lawmakers and the government had heeded their concerns over flaws in the act before it was endorsed. Recently the LG bill has come under scrutiny with the ECB saying that it is not in line with the Constitution and other electoral laws.Contrary to popular thinking that LG elections could be held after the Act was passed, it now emerges that one more session of Parliament is required to get approval for changing boundaries of LG government and a list of thromdes before the elections can be held.“In 2007 when the old local government bill 2007 was being drafted, we pointed out that there were inconsistencies between the bill and the draft Constitution, but they weren’t addressed and passed as the LG Act 2007,” said the chief election commissioner, Dasho Kunzang Wangdi. “Later it was mainly due to differences between the bill and the Constitution that lead to a new LG Bill being drafted.”While the drafting of the LG Bill, 2009 was going on by the ministry of home and cultural affairs (MoHCA), with consultations and input from MPs, Dasho Kunzang said that the ECB again pointed out constitutional problems in the bill to the committee.In a consultative session in Paro, ECB sent two election commissioners and two lawyers, who again pointed out the flaws in the bill to MoHCA officials and MPs from the Assembly’s legislative committee. “ECB also proposed that for the LG election to be held on time, Parliament, as a ‘one time measure,’ should include a proposal in the LG Bill that will enable the executive arm of the government to declare the boundaries of local governments,” said Dasho Kunzang.The reason was that only the Parliament through a three fourth majority could change the boundaries of local governments, which would mean a second session of Parliament to do so after the LG Bill is passed, delaying LG elections.ECB officials held one more sensitisation program for MPs just before the last Parliament session where the LG Bill, 2009 was presented in detail, the flaws pointed out and the ‘one time measure’ proposal made again to have LG elections on time.The LG Bill 2009 failed to secure


majority vote in the joint sitting, mainly on the constitutional issue of having 20 dzongkhag thromdes against the government argument that it was not practical having them. To avoid more delays in the LG elections, an extraordinary session of Parliament was convened to pass the LG Bill, 2009.However just before the special session, ECB, on September 8, sent a letter to the speaker Tshogpon Jigme Tshulthim, highlighting sections of the Constitution inconsistent with the LG Bill and proposing the ‘one time measure’ of Parliament empowering the executive to declare the boundaries of local governments in order that LG elections are not delayed.ECB’s concerns were again not addressed and instead a provision was included in the bill that declaration of thromdes rested with Parliament, since it would involve changing of boundaries.Acting director of the local government department under MOHCA, Karma Geley said, “ECB said that 20 dzongkhag thromde tshogdes were necessary as per the Constitution, but the government was of a different view”. Head of the Assembly’s legislative committee MP Ugyen Wangdi said, “Initially, when the LG bill was introduced it had a provision that the executive would declare thromdes, but this was changed after objections from NC.”Member of the joint legislative committee on the LG Bill MP Ugyen Tenzin said, “The delay in LG elections is affecting the people at the grassroots level.” Three killed in accident Three people were killed and two critically injured when the truck they were traveling in went off the road on the way to Phuentsholing from Thimphu on the evening of October 16 around 5.00 pm. The truck driver, Sonam Jamtsho, 30, died on the spot while Dawa, 23, and her three-year old girl succumbed to injuries on the way to the hospital. The 21-year old driver’s assistant and a 49-year old woman were referred to Thimphu’s referral hospital, said police.The assistant driver’s condition is said to be stable after undergoing surgery on October 17, according to hospital staff and the woman has been admitted with the Lungtenphu Military hospital.According to police, the accident occurred when the truck reached Makaibari, about 33 Km from Tsimasham towards Gedu, falling about 50 metres below the road. Bold plan to address nursing shortage After five years, the chronic shortage of nurses finally gets some attention 19 October, 2009 - By the beginning of 2013, the health ministry will have 90 more nurses working across the country. These 90, class XII students who left for India to be trained as general nurse midwives (GNM), auxiliary nurse midwife (ANM) and health assistants (HA) last month, were recruited as nurse assistants last year under the accelerated nursing program.This program, which is perhaps the first step initiated to address the chronic shortage of nurses in the country, was introduced only last year although Bhutan’s been facing this problem for more than five years.Bhutan today has 538 nurses and needs at least 1,538 nurses by 2013.But by 2013, even with the additional 90 nurses, Bhutan will still be short by 682 nurses. “We’ve felt the shortage of nurses


ever since we started increasing hospital beds and extending the capacity of hospitals around the country,” said the ministry’s officiating chief human resources officer, Mindu Dorji.He said that the ministry has been tying to address this issue by opening a nursing college, because the number of nurses graduating from the royal institute of health sciences (RIHS) was not enough. “The annual turnover is only about 30 nurses from RIHS and it’s very difficult to meet the requirement of nurses in the country with that,” he said.Mindu Dorji added that, without a nursing college in the country, it became even more difficult to get slots for nursing courses abroad.The first batch of nurses, who are now in India, comprise 36 males and 54 females. They were given a four-month crash course in basic health care before they were sent to the field and now studies. The ministry had initially recruited 100, but ten of them dropped while the crash course was underway.“We didn’t replace the ten nurses because by then the crash course had already begun,” said Mindu Dorji.They are studying at the royal educational institution and Cheraan’s institute of health sciences, in Coimbatore and at Sri Venkateswara school of nursing in Chittoor, Andhra Pradesh. Reforms to create a more enabling environment for business At the two-day workshop, entrepreneurs were reassured of the government’s best intentions Enterprise Act 18 October, 2009 - The economic affairs ministry has initiated a series of regulatory reforms to create a more enabling environment for business. One of them is drawing up an Enterprise Act that will require all types of businesses, where micro or large, to register and give recognition to various types of enterprises. “Existing rules and regulations does not recognise all types of enterprises,” said the ministry’s registrar of companies, Ugyen Dorji, who made a presentation at a two-day workshop in Thimphu yesterday. “For example, recognition of sole proprietorships and partnerships are missing in the existing regulations.”Such enterprises, at the moment, cannot exercise their rights and obligations because there is no legal basis to recognise its existence. “That is why there is a need for such an act,” he said. According to Ugyen Dorji, the act will also reduce the procedure of entry into business, a central database on businesses can be created and clear procedure, and roles and responsibility of different organisations can be established. “The basic idea is to simplify the process of starting up a business and move away from the licensing regime,” said Ugyen Dorji, who added that, in the process of drawing up the act, which would be done in consultation with the private sector and other relevant agencies, what is not necessary would be removed. At present, it takes 46 business days to obtain a license. Micro-business licenses take a day. Dr Marc Reichel, who presented an outline on how to go about drafting an enterprise registration act, said that it was important to consider the capacity of both the government and the private sector when drawing up the act. “There’s no point in drawing up a complex act that neither the government can implement nor the private sector follow,” he said, adding that Bhutan was the first country he had come across so far where businesses did not have to register. Representatives of the private sector who participated in the two-day workshop expressed concerns that, if the act reduces the administrative burden for starting up


business, it was well and good, otherwise it could just add to the never ending paperwork businesses have to go through. “While drafting the law, we must approach it with the axiom of facilitating businesses, especially for the cottage and small scale enterprises, and not create another regulatory impediment,” said the industry director, Sangay Wangdi. “Enabling more businesses to register will allow for the creation of a more organised sector that will result in institutionalising formal structures and globally accepted best practises in the management of business.” Myanmar:

Political:

• Myanmar PM to attend ASEAN summit • Detained Burmese democracy icon Aung San Suu Kyi met her legal counsels

and went over plans to appeal at the High Court. • Burmese civil society groups have urged ASEAN Peoples’ Forum •

Social: Economic:

• Myanmar builds more resorts to boost tourism industry Geo-strategic:

• China, Myanmar agree to work for border stability • Indian directed the Assam Rifles, a paramilitary force based in the North-

eastern region ss Myanmar PM to attend ASEAN summit Myanmar’s prime minister, General Thein Sein, will attend the annual Association of Southeast Asian Nations summit in Thailand this week, an official announced Monday.The official confirmed a state media report that Thein Sein would visit this weekend’s summit of regional leaders in the Gulf of Thailand.“General Thein Sein will attend the ASEAN summit,” said the official on condition of anonymity.His trip to Thailand comes as the junta appears to be opening up diplomatic channels abroad, with Thein Sein last month becoming the highest-ranking Myanmar official to attend the United Nations General Assembly in 14 years.The prime minister made a speech before the assembly on September 28, condemning Western economic sanctions against his country as the United States mulls greater engagement with the reclusive government.In 2007, Thein Sein caused a diplomatic furore at an ASEAN summit by forcing host Singapore to revoke an invitation to UN envoy Ibrahim Gambari.Gambari had been due to brief regional leaders after a bloody crackdown on street protests in Myanmar that caused international revulsion.Myanmar’s human rights record has caused constant problems for ASEAN since it joined the bloc in 1997. This year’s summit is due to officially launch a new body to help prevent rights abuses in the region.Leaders attending the 15th annual summit, being held in Hua Hin, where Thailand’s revered king often resides, are due to discuss closer economic ties and ways of coping with natural


disasters.The summit will be followed by talks between the 10 members of ASEAN and the leaders of China, South Korea, Japan, Australia, India and New Zealand.Thailand is mobilising an 18,000-strong security force and invoking a harsh internal security act to prevent protests at the meetings, which have been cancelled twice before because of anti-government demonstrationsASEAN groups Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. Detained Burmese democracy icon Aung San Suu Kyi met her legal counsels and went over plans to appeal at the High Court. Nyan Win and Khin Htay Kywe, two of Aung San Suu Kyi’s lawyers, who are drafting an appeal letter to be submitted to the High court, on Friday, visited her for one and-a-half hours at her lakeside villa on Rangoon’s University Avenue and discussed the appeal against the verdict of a district court. “I went along with Daw Khin Htay Kywe. Initially we discussed the appeal,” Nyan Win, who is also the spokesperson for her political party, told Mizzima. On August 11, the district court in Rangoon’s notorious Insein prison handed down a three year sentence to the Nobel Peace Laureate on charges of violating her previous detention regulations, by allowing an American into her house. But an executive order by the Burmese junta’s military supremo Snr Gen Than Shwe halved the sentence and allowed her to serve time at her home. Following the verdict, the Burmese pro-democracy leader’s legal team filed a petition at the divisional court. But the court decided that the verdict was in keeping with the law and found no reasons for it to be revised. Nyan Win said he and the National League for Democracy party leader held further discussions on the recent developments, including her meeting with diplomats from the United States, United Kingdom and Australia and also the meeting between the NLD leaders and European Union delegation on Wednesday. “Later we discussed her meetings with the government’s Liaison Minister Aung Kyi and her meeting with the three western diplomats. But she said so far there is no news to be released,” Nyan Win added. In an unexpected gesture, Burma’s military strongman Snr Gen Than Shwe responded toAung San Suu Kyi’s proposal last month offering to cooperate in working for sanctions to be lifted and gave in to her request to meet diplomats from US, UK and Australia. Following the meeting the diplomats also met NLD central executive committee members and briefed them on their meeting with Aung San Suu Kyi. In response to the Burmese democracy icon’s proposal the junta arranged meetings with the Liaison Minister Aung Kyi. On Wednesday, European Union delegates visited the NLD headquarters in Rangoon’s Shwegondine Street and asked them about their opinion on Aung San Suu Kyi’s talks with the regime and her offer to help lift sanctions and also the party’s reason behind demanding a revision of the 2008 constitution. In response, the NLD leaders said, they are not seeking power-sharing with the government but are asking for a revision of the 2008 constitution, which was drafted in a one-sided manner by the junta and their hand-picked representatives and approved in a referendum, which opposition groups said was ‘rigged’. Burmese civil society groups have urged ASEAN Peoples’ Forum


Burmese civil society groups have urged Thailand to put a stop to dam projects in neighbouring Burma, while other groups at the ASEAN Peoples’ Forum called on the regional bloc to address the Burmese regime’s breaching the newly drafted Charter, amidst confusion in finding a delegation to meet ASEAN leaders.Fifty one civil society organizations from Burma today called on the Thai government at the Association of Southeast Asian Nations (ASEAN) People’s Forum, demanding an immediate halt to dam projects on the Salween River to avoid being sucked into Burma’s escalating civil warThe groups, in their statement released on Monday, said military operations and human rights abuses by the Burmese regime have recently increased around the sites of the planned Hat Gyi dam in Karen State and Ta Sang dam in Shan State. It warned that the projects would never provide guaranteed energy security for Thailand.“The Salween dams will only mean more fighting and more refugees fleeing to Thailand,” said Sai Sai, Coordinator of the Salween Watch Coalition.“Building dams in Burma’s war zones makes no sense if Thailand wants stable power supply,” said Montree Chantawong of the Thai-based environmental group TERRA.Renewed fighting has also erupted in Shan State, as the regime attempts to bring the ceasefire armies under its control as “Border Guard Forces.” Imminent attacks on the United Wa State Army, which controls the access routes between the planned 7,110 megawatt Ta Sang dam and the Thai border, would lead to a massive fresh refugee influx into northern Thailand.Pianporn Deetes, an environmentalist from Living River Siam Project, who participated in the forum, told Mizzima that there is no representative from the Thai government at the forum; even though organizers have invited officials from the Ministry of Energy.However, the group will make a submission to ASEAN leaders through their representatives, who are scheduled to meet the leaders on October 23.Five large dams are being planned on the Salween River in Burma, four to export power to Thailand, and one to China. The regime’s military offensive on the Kokang in northern Shan State, which drove over 37,000 refugees into China in August, secured control of areas around the Upper Salween Dam, being planned by Chinese companies in Kunlong.Meanwhile, a delegation of Burmese civil society groups organized by the Task Force on ASEAN and Burma (TFAB) are calling on ASEAN to address the SPDC’s violations of the regional body’s Charter, according to their statement released on Monday.“The regime’s volatile approach to consolidating power in the run up to the 2010 elections, including attacks on ethnic groups and the democratic opposition, is a clear threat to regional peace and security. At the ensuing summit, ASEAN must address the junta’s serious breaches of the Charter. It can start by engaging in critical political dialogue with the regime and supporting the Burmese people’s efforts towards national reconciliation,” said Khin Ohmar, Coordinator of Burma Partnership and a member of TFAB.The Task Force on ASEAN and Burma is a network of Burma's civil society actors working to promote a people-centered ASEAN that is supportive of the cause of democracy, human rights, and peace in Burma. Myanmar builds more resorts to boost tourism industry


Myanmar has witnessed the development of more international resort hotels to attract foreign travellers to the country and boost tourism development.The Andaman Club, a travel and tour company, is expected to develop a US$3.5 million resort hotel, named St Luke’s Beach Resort Hotel, in New Palau Ganchar Beach on St Luke’s Island in the Andaman Sea.Another company, Amata Hotel Group, is also expected to develop an upscale hotel located in Myeik Archipelago, the southernmost part of Myanmar. Additionally, accessibility to Ngwe Saung Beach located at Myanmar’s southwestern Ayeyawaddy division is anticipated to be facilitated by a proposed airport project.This is envisaged to shorten the travelling time from Yangon, the former capital of Myanmar, to a short flight compared to a three-hour drive from Yangon.Upon completion of the airport, Ngwe Saung Beach will become the second beach to be accessible by air after Ngapali. According to tourism statistics, Myanmar’s tourist arrivals for the fiscal year 2008–09, which ended in March, exceeded approximately 255,000.

China, Myanmar agree to work for border stability China and Myanmar agreed to work together to ensure stability along their border, state media said, after violence erupted on the Myanmar side in August that pushed thousands of refugees into China. “China and Myanmar should make efforts together to strengthen exchanges and cooperation, as well as safeguard stability on the border areas for the sake of the fundamental interests of the two peoples,” Xinhua news agency quoted Chinese Vice-Premier Li Keqiang as telling a visiting Myanmar minister. Li added that China “would keep supporting Myanmar’s economic construction and sustainable development”. In August, Myanmar’s army overran Kokang, a territory that lies along the border with the southwestern Chinese province of Yunnan and was controlled for years by an ethnic Chinese militia that paid little heed to the central government. Many of the refugees were ethnic Chinese, some of them Chinese citizens, who complained their houses and businesses had been sacked and looted during the violence. Last month, China rapped the former Burma over the violence, demanding the government protect Chinese citizens and make sure such incidents did not happen again. But relations appear to be improving again. Xinhua said vice premier Li met the visiting Myanmar minister, Tin Aung Myint Oo, during a meeting in the southwestern Chinese city of Nanning. “Tin Aung Myint Oo extended thanks for China’s support during the meeting, saying that Myanmar appreciated its friendly relations with China,” the report said. Myanmar was willing to deepen the mutually beneficial cooperation and stabilise the border areas, Xinhua reported the minister as saying. The August crisis tested ties between two countries who view each other as strategic friends. Energy-hungry China is one of the few powers willing to do business with military-run Myanmar, and has invested more than $1 billion to get access to natural resources such as oil and gas. Resource-rich Myanmar has parried Western sanctions and pressure from its Southeast Asian neighbours over its shoddy human rights record by courting China. Indian directed the Assam Rifles, a paramilitary force based in the North-eastern region


The Indian Ministry of Home Affairs has directed the Assam Rifles, a paramilitary force based in the North-eastern region, to move closer to the India-Burma border and to intensify operations in curbing illegal activities, including insurgency along the borderIndian media reported on Sunday. In a report on Sunday, the Press Trust of India (PTI), said the Assam Rifles, which was recently stationed about 40 kilometres from the international boundary of India and Burma, has been directed by the Home Ministry to move closer to the porous 1,631 km-long border with Burma to prevent cross-border activities including militancy, drugs and arms trafficking. “We have directed the Assam Rifles to deploy forces closer to the border to stop militants and smugglers having a free run,” the report said quoting a Home Ministry official. The orders to India’s paramilitary force to move closer to the border came following Indian Army Chief General Deepak Kapoor’s three-day visit, October 11 to 14, to Burma, where he met junta supremo Senior General Than Shwe and Vice Senior General Maung Aye and discussed cooperation between the two armies. Before Kapoor’s visit to Burma, a meeting between Home Secretaries and Directors General of Police of India’s North Eastern states was held in Assam’s capital Guwahati, where it was agreed to formulate effective counter-insurgency operations. Meanwhile, sources on the border said, though there are no signs of increased military activity, Assam Rifles battalions have begun moving closer to the Burma border in Manipur and Mizoram states. They have repositioned themselves about five miles from the border. “Earlier, there were only about 20 soldiers in a camp near the border but now we notice there are at least 50 soldiers in one outpost,” the source said. “They have also increased patrols along the border,” he added. On Monday, the Assam Rifles, in a statement said, the troops detained a rebel belonging to the United National Liberated Front (UNLF) during a mobile operation on October 17, near Waikhong in Chandel district in Manipur near the border. The Indian government has frequently sought help from the Burmese Army to flush out North-east rebels from its soil. As a part of the two countries cooperation, both Indian and Burmese military also hold regular discussions on border security management including northeast insurgents. The 37th biannual military meeting between the two countries was held in Kalemyo in Sagaing Division, Burma in late August.

BUSINESS AND POLITICS IN THE MUSLIM WORLD

South Asia Ghashia Kayani

Weekly Report: from 18 October to 31 October 2009 Presentation: 4 November 2009

Summary: In Bangladesh at political front BNP secretary general Khandaker Delwar Hossain alleged country's parliament has become a character assassination centre where several sorts of fake and imaginary allegations are being lodged against opposition leaders and


activists intentionally. On social front WFP Bangladesh Representative John Aylieff drew attention to the challenge that the government and others have in addressing the affects of malnutrition in the country."Three million children are acutely malnourished and 41 percent of children under five are underweight. At a time when Bangladesh has experienced high levels of economic growth, the acute malnutrition rate has risen progressively and is now above the WHO emergency threshold. At economic front German investors are keen to invest in Bangladesh's gas exploration, renewable energy, bio-gas, coal mining and photovoltaic sectors. The interest was shown when a visiting German Business and Investment delegation led by Peter Clasen. At geo-strategic front As tension continues to mount on the Bangladesh-Myanmar border, Asian giant China, a common friend of the two neighbours has come forward with the suggestion for resolving the dispute between the two countries through negotiations saying ‘War or attack is no solution of any problem. In Srilanka at political front Resettlement and rehabilitation of IDPS will remain top priority of the Government of Sri Lanka. At economic front Deputy Finance Minister Ranjith Siymbalapitiya Loan interest rates of state banks was reduced with immediate effect under the directives of President Mahinda Rajapaksa. Rates have been reduced to a minimum of eight percent and a maximum of 12 percent. At geo-strategic front Sri Lanka Renews 51 Year Old Diplomatic Relationship with Russia TheRussian Foreign Minister pledged that the Russian Federation will be always on the side of Sri Lanka, if in case the international community initiate any covertious move to charge Sri Lanka on any war related crimes.The Russian Foreign Affairs Minister’s visit was expressed as a historic moment, as it was the first ever diplomatic level visit of a Russian Foreign Minister to Sri Lanka. In Maldives at political front The current government’s policies were daunting women’s rights says the main political opposition, Dhivehi Rayyithunge Party (DRP)This was revealed at a press conference held by the president of women’s wing. At economic front Minister of Family and Health Aminath Jameel has said that more than Mrf 13 million has been spent on IGMH development.Minister Aminath Jameel said during Question hour at People’s Majlis. She said that a lot has to be spent from this year’s budget to pay previous years’ unpaid bills. At geo-strategic front In his weekly radio address President Mohamed Nasheed has said Indian companies have expressed interest investing in the Maldives, more specifically in the northern region of the country. President Mohamed Nasheed has met with Prime Minister Manmohan Singh of India, in New Delhi..Discussions were focused on a range of issues, including climate change, economy, and security. Both leaders discussed the importance of a common regional approach on climate change. In Nepal at political front Minister for Irrigation Bal Krishna Khand on Friday said that the government would not remain mute if the Unified CPN (Maoist) continued to proceed with their unlawful and anarchical behaviour. At social front In conjunction with other stakeholders including the Nepal Tourism Board (NTB), the Pacific Asia Travel Association (PATA) is hosting an international conference on adventure travel and tourism on Feb. 1-5, 2010. The conference will feature multiple sessions with deliberations on adventure travel, responsible tourism, adventure sports tourism, zero waste challenge and other issues of sustainable tourism. At economic front The ministerial level meeting of the South Asian Free Trade Area (SAFTA) decided to incorporate service sector in SAFTA and facilitate intra-regional trade. Commerce Minister Rajendra Mahato said that the discussions were zeroed in on the removal of non-


tariff barriers. At geo-strategic front The Chinese government expressed commitment to increase its grant assistance to Nepal by 50 percent. "The current annual grant assistance to Nepal will be increased to Rs 1.5 billion," Chinese ambassador to Nepal Qiu Guohong said while speaking at programme entitled "The Role of China in Nepal's Economic Development" organized in the capital. In Bhutan at political front Bhutan hosted the three day international conference on “Deepening and Sustaining democracy” (12-14 Oct), jointly organized by the Center for Bhutan studies and UNDP. At geo-strategic front Bhutan is constructing over a dozen hydropower plants with targets to generate some 11,000 MW of power by 2020, all to be absorbed in Indian markets. To all these projects, it is only Indian companies who are investing. In Myanmar at political front A delegation of senior U.S. officials arrived in Myanmar for Washington's highest-level talks with the reclusive military regime in 14 years.The Obama administration's move to engage the junta appears focussed on pushing for free and fair elections next year, although analysts say the rapprochement is as much about geopolitics and the growing regional influence of China. At social front The Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) has honored persons who contributed to the winning of some exhibition-related awards in the recent China-ASEAN Expo held in Nanning, capital of Southwest China' Guangxi Zhuang Autonomous Region, sources with the UMFCCI. At geo-strategic front South Korea's Hyundai Heavy Industries, the world's largest shipbuilder, it has won a US$1.4 billion deal to build an offshore gas platform in Myanmar. It said it secured the order from Daewoo International, a South Korean trading company which is leading a consortium to develop the gasfield off Rakhine state near the border with Bangladesh. Detailed news report: Bangladesh: Political:

• Parliament has become character assassination centre: Delwar • Arrange roundtable of political parties for consensus

Social:


• 30,000 children born each year in BD with congenital heart disease • 61 million people living in poverty

Economic:

• Inflation likely to be double digits by summer: IMF Geo-strategic:

• EU to provide increased fund for CHT development programme • China for resolving Bangladesh-Myanmar dispute through talks • German investors keen to invest in gas, energy and coal sectors

Parliament has become character assassination centre: Delwar BNP secretary general Khandaker Delwar Hossain alleged country's parliament has become a character assassination centre where several sorts of fake and imaginary allegations are being lodged against opposition leaders and activists intentionally. He made this allegation while talking to reporters at his Armanitola residence in the capital on Friday.Khandaker Delwar Hossain said country's parliament has already been made dysfunctional by the ruling party due to the illegal interference on its usual procedure conducted. In order to oust Shaheed president Zia's family members from politics as well as from the country, the government is still hatching conspiracy and it is their main agenda. And thus, Zia's family members have become a target of bitter criticism in the parliament session. Basically, country's parliament has become a centre of character assassination of opposition leaders. He said the government is engaged in destroying the democratic practices in the country. As part of its destruction scheme, interference on country's transparent judiciary system is being made. The ruling party law makers through their speeches during the parliament session are trying to implicate BNP Chairperson and her family members in several sorts of allegations including attack on Awami League law maker Taposh.Khandaker Delwar quoted Awami League law maker Sheikh Fazlul Karim Selim, as saying in the parliament BNP Chairperson Begum Khaleda Zia is yet to make any comment protesting the attack on Taposh as she is involved with the incident. Conspiracy to destroy BNP and Zia's family members is still being hatched which has been proved through the remarks of the ruling party law maker. He said the ruling party has no trust in democracy. When Ershad had come to power through autocracy, the ruling party president Sheikh Hasina said at that time she was not unhappy. The ruling party is believer of dictatorship, whether it is BAKSAL or military backed.Replying to a query, he said BNP is still prepared to extend its helping hands to the ruling party if it stops its repression and oppression on opposition leaders and activists and making fake, baseless and imaginary allegation. "We do politics for the betterment of the countrymen as we believe in democracy," Delwar Hossain added. Arrange roundtable of political parties for consensus BNP secretary general Khandaker Delwar Hossain has urged President Zillur Rahman to arrange a roundtable talks with the participation of all political parties to reach a political


consensus that can resolve all sorts of crises in the country.He made the call while addressing a discussion meeting on "scrapping of the 5th amendment and caretaker government system: prospect of Bangladesh" organized by Nagorik Forum at the national Press Club on Wednesday."We are welcoming President Zillur Rahman's calls for consensus on national issues. For the greater interest of the countrymen, unity and consensus among all political parties in the country will have to be forged as it is a must to resolve country's various kinds of crises. If the President takes step to arrange a roundtable discussion openly with the participation of all parties only then a political consensus might be formed," Delwar Hossain expressed his hope. About the caretaker government system, he said the ruling party was very sincere to the system of caretaker government once but why its attitude about the system has been changed. With a view to enjoying state power for long, the ruling party is seeking foreign cooperation which will be resisted by the nationalist forces. He urged the government to stop corruption throughout the country and minimize the gap between rich and poor people, otherwise steps to eradicate poverty will not bring any good result for the nation.Former chairman of Transparency International Bangladesh Trustee Board Professor Mozaffar Ahmed said the 5th amendment of the constitution will never be erased as country's President and Prime Minister and all ministers are still saying Bismillahir Rahmaner Rahim before starting their speeches which are also being published through newspaper. UNB adds: Defending the 5th constitutional amendment, BNP leader said it was done to restore multi-party system and rule of law. If the amendment is annulled now, 4th amendment will be restored automatically to take the nation 38 years back to one-party system.The people will not accept restoration of the 72 constitution with secularism as state principle, he added. 30,000 children born each year in BD with congenital heart disease Prime Minister Sheikh Hasina is scheduled to open an international conference on child heart ailment in the city today (Saturday), in an attempt to focus more on ensuring child survival in achieving millennium development goal (MDG)-4.The conference, first of its kind in Bangladesh, is expected to bring together 650 pediatricians and cardiologists from the United Kingdom, Singapore, Saudi Arabia, Pakistan, India and China to discuss the existing treatment practices, innovations in the filed over the last few years and devise effective ways to cut child mortality and morbidity from birth defects.Pediatric Cardiac Society of Bangladesh (PCSB), the organizer of the three-day event, said an estimated 30,000 children born each year in Bangladesh with congenital heart diseases, 90 percent of them die, mainly due to low level of awareness among doctors and parents as well as lack of proper treatment in Bangladesh.He said the children of pregnant mothers, who have smoking habits, uncontrolled diabetes and are exposed to radiation and x- ray, were more susceptible to congenital heart disease, also a leading cause of heart problems when children become adults. Prof Manzoor Hos-sain, secretary general of PCSB, told BSS on Friday that 40 percent of perinatal deaths occur within one week of childbirth due to congenital heart disease, also a leading cause of the highest number of child deaths born with birth defects."Taking drugs from pharmacies or quacks at will during pregnancy is also jeopardizing the lives of many newborns in Bangladesh," added Prof Manzoor, who is also the head of Pediatric Cardiology Department of Dhaka Shishu Hospital (DSH), the


lone specialized child hospital in South Asia where only 10 beds are kept for heart treatment.Prof Manzoor said the cardiac treatment has progressed a lot in the country over the last two decades, but the facilities for childhood cardiac problem has remained almost the same. He said he himself could not do much for children with congenital heart ailment at Shishu Hospital as patients have to refer to the National Institute of Card-iovascular Diseases (NI-CVD) for any surgery.According to available sources, the NICVD and the Heart Foundation are the only places for treatment of such children in the public sector, while expensive services are available at some big hospitals in the private sector like Apollo. The surgery of a child requires a few hundred thousand Taka.BCSB sources, however, said the situation is likely to change in a couple of years as Prime Minister Sheikh Hasina has already instructed to introduce pediatric heart surgery facilities at all public medical colleges and medical university. Sheikh Hasina is likely to make a few more announcements on it today (Saturday), it hoped. Inflation likely to be double digits by summer: IMF The prices of essentials would continue to rise throughout the current fiscal year with a possibility to push up the inflation to double digits by the summer.The concern came from a preliminary assessment of a visiting mission from the International Monetary Fund on the country's economy. The mission concluded on Thursday. The mission, led by IMF Advisor for Asia and Pacific Department Masato Miyazaki, raised the concern in the wake of "ample availability of liquidity" in the money market.They also expressed concern over increased subsidy on energy and fertilizer, slowed down investment and poor ADP implementation. The mission appreciated the country's success in "remarkably" weathering the global economic recession due to strong exports and remittance, but apprehended that the GDP growth is likely to decelerate to around 5 percent at the end of the current fiscal year."We'll manage the inflation (as predicted by the IMF)," Finance Minister AMA Muhith told reporters after a meeting with the mission at the Finance Ministry. He expressed confidence that the GDP would strike a 6 percent growth or more. Prime Minister's Adviser on Economic Affairs Dr Mosihur Rahman, Bangladesh Bank Governor Dr Atiur Rahman and Finance Secretary Dr Mohammed Tareq were present. "Subsidy will continue where it's necessary. We'll not provide subsidy where it is not necessary," Muhith said. He added that investments have been slow, but would pick up soon. Replying to a question over subsidy on energy and power, he said: "It' s a problem. It'll have to be there on the table."Addressing a press briefing at the Bangladesh Bank after "Preliminary Conclusion of the IMF Mission" under the Article IV Consultation, IMF Advisor Miyazaki said the recovery trend of the global recession would not be too strong, which would slow down private sector credit and decelerate GDP to around 5 percent. He, however, said the Bangladesh economy would pick up and continue to grow better than other countries, particularly the regional ones. 61 million people living in poverty Staffan de Misture, deputy executive director of the United Nations World Food programme (WFP) will arrive on a three-day official visit.The purpose of de Mistura's visit is to meet the government and the donor community and discuss how best the WFP can support the government's efforts to meet the Millennium Development Goals and


address the most pressing development challenges, including the effects of climate change and high levels of malnutrition. Both the issues are having a crippling affect on the estimated 61 million people living in poverty and which struggle to meet their basic food requirements on a daily basis, said a press release on Friday.In announcing the visit, WFP Bangladesh Representative John Aylieff drew attention to the challenge that the government and others have in addressing the affects of malnutrition in the country."Three million children are acutely malnourished and 41 percent of children under five are underweight. At a time when Bangladesh has experienced high levels of economic growth, the acute malnutrition rate has risen progressively and is now above the WHO emergency threshold. Working with the government and other partners, WFP will contribute to bringing both acute, chronic and micronutrient malnutrition down for good". Said Aylieff. "De Mistura visits Bangladesh at a significant time in WFP's 35 year history in country, as the UN agency embarks on a process to develop a new country strategy to address the effects food insecurity in the country," he added.It is expected that WFP will build its new strategy around a vision that includes, a focus on livelihoods, an expanded school feeding programme, a high emphasis on nutrition focused programmes as well as assisting the population prepare and cope with the effects of climate change. "Bangladesh is widely recognised as one of the countries most susceptible to the effects of climate change. WFP has been assisting the government in climate change adaptation activities long before the term was even coined, making us natural adaptation partners. Over the last 35 years this partnership has built 43,000 km of roads and embankments, excavated 4,000 km irrigation canals and planted in excess of 38 million trees," said Aylieff. EU to provide increased fund for CHT development programme European Union will increase funding in Promotion of Development and Confidence Building including an additional 15.5 million euro in support of further improvements in health and education sector in the Chittagong Hill Tracts. According EU sources the EU has also committed 7.5 million euros for food security and agricultural support.The sources said the project has led the EU to increase the funding for the development of CHT. The development of confidence building in CHT was initiated four years back to help underpin the CHT peace accord by supporting the government and local institutions. The United Nations Development Programme (UNDP) is implementing the programme in all three hill districts with overall aim of promoting self reliance, decentralization and sustained peace. The EU, largest donor of the project, is contributing 23.5 million euro towards the project. The project completed its first [phase in December 2006 and expected to complete it second phase in November 2009. With successful implementation of the last five years of the programme basing on the upcoming evaluation it is expected that the programme will continue during the period of 2011 to 2015 through a contribution of 25 million euros by the EU.The sources said in addition to this the EU is also funding development work by local and international non government organisations in the CHT region including tribal children's education contributing 7,50,000 euros, vocational training for indigenous people 2,50,000 euros and a community-managed water supply and sanitation programme for the rural poor .


China for resolving Bangladesh-Myanmar dispute through talks As tension continues to mount on the Bangladesh-Myanmar border, Asian giant China, a common friend of the two neighbours has come forward with the suggestion for resolving the dispute between the two countries through negotiations saying ‘War or attack is no solution of any problem.’The Chinese views were expressed by its Ambassador in Dhaka Zhang Xianyi at a programme in the capital on Thursday. The envoy also assured Bangladesh of Chinese assistance for developing road and communications. He said China is looking to import tea to reduce trade gap.According to UNB: China wants Bangladesh to resolve its disputes and disagreements with Myanmar on issues such as maritime boundary through peaceful negotiations, new Chinese Ambassador Zhang Xianyi said here on Thursday."It's quite natural having disputes and disagreements with neighbours. We hope you will solve your problems through bilateral negotiations at the negotiation table," he said at Meet-the-Reporters program at Dhaka Reporters Unity (DRU).He said his observation is that Bangladesh and Myanmar did have negotiations on the issues this year. "I am confident that with good attitude from both the sides, all problems will be resolved." The Chinese envoy replied to a volley of questions on current developments in regional and international arenas as well as bilateral political and economic cooperation between Dhaka and Beijing during an hour-long interaction. DRU President Shamim Ahmad was in the chair while general secretary Pathik Saha made introductory remarks. German investors keen to invest in gas, energy and coal sectors German investors are keen to invest in Bangladesh's gas exploration, renewable energy, bio-gas, coal mining and photovoltaic sectors. The interest was shown when a visiting German Business and Investment delegation led by Peter Clasen, Head of the Bangladesh section of the OVA-Asia-Pacific Business Association, paid a courtesy call on Prime Minister Sheikh Hasina at her office here on Wednesday.During the meeting, the German delegation apprised the Prime Minister that they have special interests to invest in Bangladesh as favourable investment environment is presently prevailing in the country under the present democratic government. "Our interest to invest in Bangladesh is increasing day by day as there exists excellent business opportunity. We are ready to start business in Dhaka and Chittagong," they added. Briefing newsmen after the meeting, Prime Minister's Press Secretary Abul Kalam Azad described the meeting as "fruitful" where expansion of trade and business between the two countries was widely discussed. The German business delegation also expressed their willingness to impart training to the Bangladeshi farmers and agriculture experts on producing organic food, providing their support in communications and solar power generation. During the meeting, they lauded the Prime Minister's visionary leadership and her bold and prudent representation in different international fora. Reciprocating to German delegation's gesture, the Prime Minister urged the German entrepreneurs to invest more in Bangladesh, assuring them of providing all out support to this end.She urged Germany to import pharmaceuticals and


ceramics goods from Bangladesh saying these are quality Bangladeshi products with international standards. Srilanka: Political:

• Resettlement and rehabilitation of IDPS will remain top priority of the Government of Sri Lanka

Social:

• Northern Province Receives 41 IT Laboratories Economic:

• State Banks Reduced Loan Interest Rates with Immediate Effect Geo-strategic:

• Nepal Prez gets invite for Sri Lanka visit • UNHCR in Sri Lanka to work towards promoting Children’s future • Sri Lanka Renews 51 Year Old Diplomatic Relationship with Russia • India experts to help speed up demining in Lanka

Resettlement and rehabilitation of IDPS will remain top priority of the Government of Sri Lanka Children in Lumbini welcome President Mahinda Rajapaksa and First lady Shiranthi Rajapaksa when they visited the birth place of lord Buddha at Lumbini on 30thThe Nepalese leaders congratulated President Rajapaksa on the defeat of the LTTE and elimination of terrorism in Sri Lanka and re-affirmed their solidarity with the Government and People of Sri Lanka.Sri Lanka President Mahinda Rajapaksa undertook a 3 day Official Visit to Nepal from 29th – 31st, October 2009 at the invitation of his Nepalese counterpart Dr. Ram Baran Yadav. Sri Lankan leader appraised the Nepalese leaders the current developments in the country in particular on the ongoing rehabilitation and re-construction process.President said that the ongoing rehabilitation and re-construction process and has been and will be the priority of the Government of Sri Lanka. Mahinda Rajapaksa said that the number of IDP’s has been brought down to 180, 000 as of 27 October, 2009 from the original figure of 280,000 as a result of the commitment and the well coordinated resettlement programmes undertaken by the Government in collaboration with the UN according to international standards.President Mahinda Rajapaksa with Dr.Ram Baran Yadav President of Nepal Earlier, on arrival President Rajapaksa and the delegation were accorded an official welcome and received by the Deputy Prime Minister and Minister for Foreign Affairs of Nepal Sujata Koirala,


Minister for Constituent Assembly, Federal Affairs, Parliamentary affairs and Culture Dr. Minendra Rijal and the Nepalese Ambassador to Sri Lanka His Excellency Durga Prasad Bhattarai at the Tribhuwan International Airport.During the visit, President Rajapaksa held discussions with President Ram Baran Yadav and Prime Minister Madhav Kumar Nepal. Former Prime Minister and Chairman of Unified Communist Party-Maoist Puspha Kamal Dahal [Prachanda] and Deputy Prime Minister and Minister for Foreign Affairs of Nepal Sujata Koirala called on the President. Northern Province Receives 41 IT Laboratories Social Services and Social Welfare Minister Douglas Devananda and Northern Province Governor Major General (retired) G.A. Chandrasiri handing over a computer to a principal at the functionForty one computer laboratories have been set up in the Northern Province under the government’s accelerated infrastructure development process.These Information Technology laboratories were received under a project to set up 1000 IT Laboratories Island wide as President Mahinda Rajapaksa pledged in his Mahinda Chinthanaya. Further, the government has also named the year 2009 as the year of English and Information Technology.Thirty three IT laboratories out of 41 have been set up in the Jaffna district, whilst the rest are to be set up in the Vavuniya and Mannar districts, an official from the Education Ministry revealed. State Banks Reduced Loan Interest Rates with Immediate Effect Deputy Finance Minister Ranjith Siymbalapitiya Loan interest rates of state banks was reduced with immediate effect under the directives of President Mahinda Rajapaksa. Rates have been reduced to a minimum of eight percent and a maximum of 12 percent with effect from today.The previous interest rates applied was a minimum of 15 percent and a maximum of 22 percent.Deputy Finance Minister Ranjith Siymbalapitiya speaking to the Asian Tribune said that the Government’s aim is to make more opportunities for general public to attend to their day to-day activities with confidence, with the assistance of the state banks. “While people began to continue their transactions with the state banks, such banks could directly join in the process of strengthening the country’s economy, “ the Deputy Minister added. He said that the President has directed all state bank heads to cut down the interest rates applying the new rule even for the loans already issued. Also penalty payments imposed by state banks for non-payment of loan installments have also been cut with immediate effect. Nepal Prez gets invite for Sri Lanka visit and officials at Lumbini Development Trust had reached to Lumbini to welcome the Sri Sri Lanka President Mahinda Rajapaksa met Dr.Ram Baran Yadav President of Nepal at Rastrapathi BhavanThe visiting Sri Lankan President Mahinda Rajapaksa has invited his Nepali counterpart Dr Ram Baran Yadav to visit Sri Lanka.President Rajapaksa extended the invitation during his meeting with Dr Yadav on Friday afternoon. “President Rajapaksa has invited Dr Yadav to come to Sri Lanka at the time of convenience,” said his press advisor Rajendra Dahal.Mahinda Rajapaksa and the Sri Lanka delegation was


received by Nepal Prime Minister Madhav kumar President Dr Yadav has not gone for foreign visit yet even as he received invitation from neighboring India shortly after he was elected as president last year.Prior to the meeting with his Nepali counterpart, President Rajapaksa visited Lumbini, the birth place of Lord Buddha. He had reached Lumbini at National Standard Time 10:45 am through a Nepal Army helicopter and stayed there till NST 2:15 pm.Besides offering prayers in Maya Devi Temple, President Rajapaksa inaugurated a Vihar built by Sri Lankan government. The president also inspected Sri Lankan Pilgrims Rest House built there for visiting Sri Lankan pilgrims and planted a tree sapling in the temple premise.Talking briefly to media persons, President Rajapaksa said he had a long cherished desire to visit Lumbini since his childhood and that the desire had come true with the visit.President Rajapaksa said the responsibility for the development of Lumbini area was not of Nepal alone but also of other countries including Sri Lanka. He said that the number of Sri Lankan pilgrims visiting Lumbini will see sharp increase from the annual average of 40,000 now.On the occasion, the president donated USD 1 million for the developmentof Lumbini area.Local administration had made special security arrangement in and around the temple keeping in view of the president’s visit. Hundreds of Nepal Army (NA), Armed Police Force and Nepal Police personnel were mobilized in the area.Minister for Culture and Constituent Assembly Affairs Dr Minendra Rijal, senior government officials Lankan President.President Rajapaksa also held meeting with Prime Minister Madhav Kumar Nepal and attended a dinner hosted by the prime minister in his honor on Friday evening. UNHCR in Sri Lanka to work towards promoting Children’s future The new UNHCR representative to Sri Lanka assured to work towards promoting the welfare of the children.Mr. Michael James Zwack who recently assumed duties as the Representative for the UNHCR in Colombo called on Foreign Minister Rohitha Bogollagama at the Ministry of Foreign Affairs on 28th October 2009 and presented his letter of appointment. During the call on Minister Bogollagama, Mr. Zwack reiterated the commitment of the UNHCR to work in close coordination with the Government of Sri Lanka.Responding to Mr. Zwack, Foreign Minister Bogollagama stated that though it has only been a few months since the conflict came to a close, the Government of Sri Lanka first began the resettlement process of the IDPs within three months. The Minister also stated that the number of the IDPs had reduced to about 188,535 as at 27th October 2009 and pointed out that those being resettled were also provided with various assistance such as dry rations and cash benefits, in order to ease this process.He also mentioned the assistance provided by the Government of Sri Lanka to the children who were being resettled at the welfare villages to continue their education. Endorsing the views expressed by Minister Bogollagama, Mr. Zwack stated that children were the future and that the UNHCR would work towards such goals. Sri Lanka Renews 51 Year Old Diplomatic Relationship with Russia TheRussian Foreign Minister pledged that the Russian Federation will be always on the side of Sri Lanka, if in case the international community initiate any covertious move to


charge Sri Lanka on any war related crimes.The Russian Foreign Affairs Minister’s visit was expressed as a historic moment, as it was the first ever diplomatic level visit of a Russian Foreign Minister to Sri Lanka. The Russian Foreign Minister held discussions with President Mahinda Rajapaksa and his counterpart - Sri Lanka’s Foreign Minister Rohitha Bogollagama, before his departure last night.During the discussions, Foreign Minister Bogollagama conveyed the appreciation of the Government of Sri Lanka to the Russian Federation for the unstinted support during Sri Lanka’s fight against terrorism.The Foreign Minister stated that the Russian Federation had, throughout Sri Lanka’s challenge against terrorism, been one of the closest allies by being consistent with its support politically on the need to interdict and neutralize terrorist activities in Sri Lanka. He said this support was reflected not only in the condemnation of heinous terrorist acts by the LTTE but also through policy support and tangible measures. Foreign Minister Bogollagama pointed out that this was done despite the informal pressures which may have been exerted by some misguided entities in the international community against provision of such support to Sri Lanka. He also noted with thanks the Russian Federation’s assistance in addressing the post conflict challenges which includes the provision of relief items and US$500,000 through UNHCR. Foreign Minister Bogollagama also stated that in view of the importance human rights issues have gained in the international arena, Sri Lanka and the Russian Federation had a frank exchange of views and it was recognized that all countries were not equal players in the field of human rights, since the dictates of some countries get overriding positions to the point of creating double standards. This, the Foreign Minister said, could be a culmination of some members of the international community unwittingly becoming pawns of groups with misplaced vested interests. Foreign Minister Bogollagama further stated that the two countries were of the view that the international community should alleviate themselves from such machinations and act in accordance with ground realities.The two Ministers also addressed issues concerning the global economic downturn which has affected all the countries. In this context, the discussion of the two Foreign Ministers focused on the necessity for concerted coordinated partnerships, across regions, to overcome the current hiatus and to place structures in place to prevent a future repetition of what we have been experiencing for the past year. Foreign Minister Bogollagama also placed on record Sri Lanka’s appreciation to the offer made by the Russian Federation for the state credit line of US$.300 Million. The two Foreign Ministers also discussed ways and means of furthering economic cooperation and the possibilities of enhancing trade and economic relations while potential for the trade of products such as rubber and rubber based products, gems and jewellery, carbon, coconut and coconut based products, tea, steel, graphite, fisheries, wood based products and pharmaceutical products were recognised.Yesterday two agreements were also signed between Sri Lanka and the Russian Federation - one was on the ‘Cooperation to Suppress Illicit Traffic in and Abuse of Narcotic Drugs and Psychotropic Substances”, and the second one (MoU) on the “Prevention of Natural Disasters and Mitigation of their Consequences. ” The first one was signed by the two Foreign Ministers, while the second agreement was signed by the Russian Ambassador in Sri Lanka Vladimir P. Mikhailov and Acting Secretary of the Disaster Management and Human Rights Ministry G.D.K. Amarawardena. Foreign Minister Lavrov addressing the Sri Lankan media said that approximately 20 Russian based companies are established in Sri Lanka. He also said that Russia’s interest in oil


exploration in the Mannar bay and the rehabilitation of the Sapugaskanda oil refinery in the immediate future. The expansion of economic ties between two countries with several identified trade and investment fields were also noted by the Foreign Minister.Two Foreign Ministers also discussed ways and means of implementing and improving the Air services and tourist programs between two countries. Further, they have also discussed on the aspect of economic cooperation and the possibilities of enhancing trade and economic relations while potential for the trade of products such as rubber and rubber based products, gems and jewellery, carbon, coconut and coconut based products, tea, steel, graphite, fisheries, wood based products and pharmaceutical products. India experts to help speed up demining in Lanka Indian Prime Minister Manmohan SinghPrime Minister Manmohan Singh has directed the Defence Minister to send a team of experts to Sri Lanka to help in speeding up removal of mines in the war-ravaged Mannar, Killinochi and Mullaitivu districts to pave the way for speedy resettlement of uprooted Tamils now living in make-shift camps in Vavunia.This was stated here on Saturday by Tamil Nadu Congress Committee president K V Thangabalu who accompanied the team of DMk and Congress MPs from Tamil Nadu when they went to New Delhi last week to brief the Prime Minister and Congress president Sonia Gandhi about the outcome of their visit to Sri Lanka.Mr Thangabalu said that the team submitted a detailed report on Friday to Dr Singh and Mrs Gandhi, seeking India's help for the rehabilitation and resettlement of the displaced Tamils.Following the team's visit, Sri Lankan President Mahinda Rajapaksa agreed to send home 58,000 displaced Tamils in a fortnight. Already over 40,000 have been sent back. Mr Thangabalu said that soon after the team's meeting with him, Dr Singh asked the Defence Minister to send a team of demining experts to Sri Lanka. The Indian government also spoke to Basil Rajapaksa, advisor to President Rajapaksa, to send a team to India to discuss how to utilise the assistance given by India for the resettlement of internally displaced persons, he said. Maldives: Political:

• Government policies daunting women’s rights – DRP • MDP passes a resolution against DRP actions

Social:

• Over Mrf 13 million spent on IGMH development Economic:

• Law to be made on agricultural land • Indian companies to invest in Maldives – President

Geo-strategic:


• President meets diplomats from Uganda, Egypt • Egypt to assist Maldives in education sector • President Nasheed meets Indian PM • Maldives supports recommendation in Goldstone’s report on Gaza Conflict

Government policies daunting women’s rights – DRP The current government’s policies were daunting women’s rights says the main political opposition, Dhivehi Rayyithunge Party (DRP)This was revealed at a press conference held by the president of women’s wing of DRP Ms Azima Shukoor. Azima said that in the past a lot of successful work had been undertaken to protect and promote women’s rights in the country. She added that now, women’s rights were going backwards.She said that women’s position in the society and women’s rights was going backwards when a lot of work was done to promote women’s rights, and when a lot of developments were achieved in this direction in the past.Giving her reasons for saying this, Azima said that since present government came to power, Ministry of Gender was terminated. Besides this, she said that working women faced a lot of problem because working hours of civil service employees was changed and also increasing the visa fees of foreign maids created problems for women. In addition to this she pointed out the termination of 210 women employees of women’s mosques in the country was not about 210 women, but 210 families who were associated with these women would be affected by this decision. Azima said that this showed that women were not included in the priority list of the government. MDP passes a resolution against DRP actions Maldives Democratic Party’s (MDP) national council has passed a resolution on Tuesday to undertake a nationwide protest against the main opposition, Dhivehi Rayyithunge Party (DRP).The resolution was passed to undertake a nation wide protest against DRP and its political allies, who, MDP says, was abusing DRP’s power in the People’s Majlis and also was trying to threaten a cabinet minister by initiating a no- confidence motion against him in the Majlis. The purpose of this proposed nation wide protest, according to the resolution, was also to protect and maintain the government which was lawfully elected by the people of the country.In the emergency council meeting held on Tuesday evening, this resolution was submitted to the council by Madaveli constituency member of Majlis Mohamed Nazim. The resolution was passed with the unanimous support of all the members who attended the meeting.DRP/PA had submitted for a no confidence motion against Minister of Foreign Affairs Dr Ahmed Shaheed on Tuesday. According to the opposition alliance the main reason they were doing this was because Dr Shaheed was responsible for the government’s decision to normalize relations with Israel. Over Mrf 13 million spent on IGMH development


Minister of Family and Health Aminath Jameel has said that more than Mrf 13 million has been spent on IGMH development.Minister Aminath Jameel said during Question hour at People’s Majlis. She said that a lot has to be spent from this year’s budget to pay previous years’ unpaid bills.“More than Mrf 13 million has been spent for machinery. Last month we installed a CT scan machine. We have paid 50% of the payment for this machine which costs Mrf 9 million.”she said.Health Minister said that besides a CT scan machine, a machine for testing H1N1 virus has been brought to Maldives and because of this, test for H1N1 virus can be done in the country.Minister Aminath Jameel further noted that the Ministry was facing difficulties and obstacles due to inefficient policies practiced previously. She said that even now an anesthetic machine is sitting in a storage facility since 2006 and that a lot of many was spend for this machine as well. Law to be made on agricultural land Minister of Fisheries and Agriculture Dr Ibrahim Didi has said that work is in progress to compile a law on agricultural land.Speaking at a press conference held yesterday Agriculture minister Dr Didi said that to conduct this work, an expert from Food and Agriculture Organization (FAO) came to Maldives last week and had prepared a questionnaire for this purpose. In addition to this, discussions had been held with farmers, organizations and office officials of islands where agricultural activity is undertaken extensively. Minister Didi said that in order to acquire additional information on this matter, 4 teams from his ministry had been sent to 4 regions of the country, that is, Seenu, Alif Alif, Haa Alif and Haa Dhaal Atolls. Indian companies to invest in Maldives – President In his weekly radio address President Mohamed Nasheed has said Indian companies have expressed interest investing in the Maldives, more specifically in the northern region of the country.The President said he was very confident of one of those companies would invest in the work of upgrading Hanimaadhoo airport to an international airport. The President also revealed that another company was also interested in investing in a transshipment port in the northern region.The government was hopeful of reaching agreements with the interested companies in the near future.In his radio address, the President highlighted the excellent bilateral relationship between India and the Maldives.The President said: “Since the new government assumed office, we have been strengthening the relationship to the utmost benefit of the Maldivian people.”The President, in his radio address, said India was also ready to assist the Maldivian government in alleviating its dollar shortage.Earlier this year, the Indian government provided US$100 million credit facility to assist the Maldives meet budget difficulties.Prime Minister Manmohan Singh has also earlier assured Indian assistance in the Maldives’ effort to seek funds from the International Monetary Fund and the World Bank to address budget deficit and restructuring the public sector.The President also underscored India was ready to assist in the democratic consolidation process in the Maldives and that India has always given the assurance of protecting democracy in the


Maldives.Continuing his radio address, the President also spoke on the Indo-Maldives border-surveillance cooperation.He said Indian assistance in border patrolling and surveillance was crucial to free its waters of illegal fishers.“The government’s goal was to ensure that it is Maldivian fishermen who fish in its waters, and benefit from them,” said the President.This news comes at a crucial time when Somalian pirates hijacked a Chinese carrier between Seychelles and Maldives and also when two illegal Iranian fishing boats were seized in the Maldivian EEZ last week. Minister of State for Defense and National Security Mohamed Muiz Adnan said in an interview given to Miadhu Daily that these two illegal fishing boats were seized so easily because Maldivian Coast Guards had the assistance of Indian Navy. President meets diplomats from Uganda, Egypt The new High Commissioner of Uganda to the Maldives, Ms Nimisha Jayant Madhwani and the new Eyptian Ambassador to the Maldives, Mr Fawzi Mohammed El Said Gohar presented their credentials to President Mohamed Nasheed yesterday. The presentation of their Letters of Credentials was held this morning at the President’s Office.After the presentations, the President met with the two diplomats separately and discussed ways of strengthening bilateral ties between the Maldives and the respective countries.The diplomats noted and applauded the important role that President Nasheed has played in promoting awareness on environmental issues in the global arena.The Ugandan High Commissioner discussed with the President on ways of strengthening the relations between the Maldives and Uganda through enhanced cooperation in fields of trade and tourism. Egypt to assist Maldives in education sector Eyptian Ambassador to the Maldives, Mr Fawzi Mohammed El Said Gohar has said that Egypt will grant assistance to Maldives in providing education not only in Islamic studies but also in other educational fields.He said this speaking at a meeting held in Ministry of Islamic Affairs yesterday. Egytian Ambassador Gohar said that Egypt is not a country that teaches only Islamic education. That besides that Egypt offered study programs in engineering, medicine and agriculture as well. He said he will work to get placements for Maldivian students in Egyptian educational institutions.“I have spoken to President Nasheed today. I hope even the government of Maldives will try to use these opportunities provided in Egypt.”said the Egyptian Ambassador.Minister of State for Islamic Affairs Mohamed Shaheem Ali Saeed said that as usual Maldives has been given 6 placements in Azhar University even this year. Shaheem said that this was a small number and hoped that this will increase in the coming years. President Nasheed meets Indian PM


President Mohamed Nasheed has met with Prime Minister Manmohan Singh of India, in New Delhi..Discussions were focused on a range of issues, including climate change, economy, and security. Both leaders discussed the importance of a common regional approach on climate change.Earlier today Prime Minister Singh and President Nasheed addressed a climate conference in New Delhi.In the meeting, Dr Singh commended President Nasheed’s speech at the conference.The Prime Minister described President Nasheed as an “untiring champion of global cooperation to address the formidable challenge of climate change”.They also discussed the global economic recession and its impact on the Maldives. Prime Minister assured of Indian assistance for the Maldives’ budgetary and economic difficulties.India provided US$100 million to alleviate budget difficulties in the Maldives.During the meeting, Prime Minister Singh also assured the President of Indian support to consolidate democracy in the Maldives.President Nasheed underscored the importance of Indian assistance in coastal security and surveillance in the Maldives.He said piracy posed a threat to the Maldives and that the Maldives needed to free its waters from illegal fishing.India has already provided radars to the Maldives.After the talks, President Nasheed participated in a lunch hosted by the Prime Minister of India. Maldives supports recommendation in Goldstone’s report on Gaza Conflict Ms. Shazra Abdul Sattar, Chargé d’Affaires a.i. at the Maldives Mission to the UN in Geneva has welcomed the report compiled by Justice Richard Goldstone on recent Gaza Conflict and its findings. She also noted that the Maldives “supports the recommendation, contained in the Goldstone report, that all alleged violations by both sides in the conflict be independently investigated and that those investigations together with any subsequent prosecutions, be monitored by the Security Council”.The Maldives also used its statement during the Special Session to express concern at the rapid expansion in Israeli settlement activity in the West Bank and at reports of settler violence against the Palestinian population – violence which usually takes place with impunity. “The Maldives believes that settler activity in the Occupied Palestinian Territory not only represents a flagrant violation of international humanitarian and human rights law, but also represents a key obstacle to the achievement of long-term peace and security in the region. The Maldives therefore takes this opportunity to call for an immediate freeze in all settlement activity, as a vital precursor to the resumption of comprehensive peace talks” concluded Ms. Abdul Sattar.The United Nations Human Rights Council on Friday ended a Special Session on the situation of human rights in Palestine by adopting a Resolution welcoming the recent report of the UN Fact Finding Mission on the Gaza Conflict, and fully endorsing the recommendations contained therein including that all alleged violations by both sides in the conflict be independently investigated and that those investigations together with any subsequent prosecutions, be monitored by the Security Council.The United Nations Fact Finding Mission on the Gaza Conflict, led by Justice Richard Goldstone, was tasked by the Council “to investigate all violations of international human rights law and international humanitarian law that might have been committed at any time in the context of the military operations that were conducted in Gaza during the period from 27 December 2008 and 18 January 2009, whether before, during or after”. The conflict led to over 1,400 deaths – mainly civilian.The Goldstone


report concluded that serious violations of international human rights and humanitarian law were committed by both Israel and Palestinian armed groups during the Gaza conflict and that there is also evidence that both parties committed war crimes, as well as possibly crimes against humanity.Responding to the report, Palestine, with the support of the Organisation of Islamic Conference, and the Non-Aligned Movement, both of which include the Maldives as a member, convened a Special Session in order to agree next steps. The resolution tabled: “condemns the non-cooperation by the occupying power, Israel, with the independent international fact-finding mission; welcomes the report of the Independent International Fact-Finding Mission; fully endorses the recommendations contained in the report, and calls upon all concerned parties including UN bodies, to ensure their immediate implementation in accordance with their respective mandates”. The resolution was adopted by the Council with 25 in favour, 6 against and 11 abstentions. Nepal: Political:

• Govt ready to counter Maoists: Khand Social:

• Nepal to host int'l conference on travel and tourism Economic:

• NC CC fails to finalise statute draft before Mahasamiti meeting • SAFTA to incorporate service trade • NEPSE bans 19 companies • Finance Minister hopeful about budget getting approved from parliament

Geo-strategic:

• China to increase its assistance to Nepal by 50 pc Govt ready to counter Maoists: Khand Minister for Irrigation Bal Krishna Khand on Friday said that the government would not remain mute if the Unified CPN (Maoist) continued to proceed with their unlawful and anarchical behaviour.While talking to reporters, Khand, who is from the Nepali Congress, warned, "The government will launch stringent actions against the Maoists if they try to spread anarchy and act violently."Defence Minister Bidhya Bhandari has also already warned of army mobilisation to counter the Maoist protests if they grew violent during their protests beginning Sunday.Khand also warned that the Maoists would be wiped out if they were harbouring desire to impose totalitarianism through violence.


Nepal to host int'l conference on travel and tourism In conjunction with other stakeholders including the Nepal Tourism Board (NTB), the Pacific Asia Travel Association (PATA) is hosting an international conference on adventure travel and tourism on Feb. 1-5, 2010. The conference will feature multiple sessions with deliberations on adventure travel, responsible tourism, adventure sports tourism, zero waste challenge and other issues of sustainable tourism.PATA is said to have received important backing from two influential organisations - Adventure Travel Trade Association (ATTA) and the International Union for Conservation of Nature (IUCN) - for its 2010 Adventure Travel Mart.According to Prachanda Man Shrestha, CEO of NTB, the conference would act as an important platform for tourism stakeholders to discuss and promote environmental protection and social sustainability. NC CC fails to finalise statute draft before Mahasamiti meeting Nepali Congress (NC) Central Working Committee (CWC) did not finalise the amendment draft of the party statute before the Mahasamiti meeting, slated to begin Sunday, after CWC members failed to reach consensus.The CWC has decided to table the dispute at the Mahasamiti meeting for discussion. A CWC meeting held Saturday, one day before the beginning of the Mahasamiti meeting, failed to finalise the draft after some CWC members including acting president Sushil Koirala were adamant on their stance that the party President should be given authority to appoint some of the office bearers in the new statute.Most CWC members are for electing all the office bearers through election and making the president a ceremonial figure.NC Mahasamiti meeting is beginning Sunday in Kathmandu. The Mahasamiti meeting was called despite vehement opposition from party president Girija Prasad Koirala, to finalise the party's amended statute and clarify its position on some key issues of the new constitution.NC is preparing to transform itself to a multi-post leadership model scrapping the presidential model it had been following since decades ever since its inception more than fifty years ago. The statute will be tabled at the general convention next year for final approval. SAFTA to incorporate service trade The ministerial level meeting of the South Asian Free Trade Area (SAFTA) decided to incorporate service sector in SAFTA and facilitate intra-regional trade. Commerce Minister Rajendra Mahato said that the discussions were zeroed in on the removal of non-tariff barriers. The meeting has also fixed the timetable to shorten the list of sensitive products, reduction of customs duty and enforcement of service trade.The service sector will be officially included in SAFTA during the 16th SAARC summit to be held in Bhutan in April 2010. The experts group will finalise the preamble of the agreement on service trade, mode of services and the schedule of commitments before 16th SAARC summit. In a linear fashion, the meeting has also decided to cut the list of sensitive products banned by member nations for import by 20 percent. A temporary committee has been formed to monitor the reduction of the list and it will submit its report in September 2010. Member nations have banned the import of 20-25 percent of exportable


items terming them sensitive products. Trade between SAFTA members is less than 5 percent of their total trade. NEPSE bans 19 companies Nepal Stock Exchange Limited(NEPSE) has decided to de-list some 19 of its listed companies due to their failure to meet the requirement of paying annual renewal charge within the first three months of the current fiscal year."As these companies violated the concerned provision of the Stock Listing Regulation, 2053 (Second Amendment), we have decided to prohibit them from carrying out stock transaction by way of delisting," read a press release issued by NEPSE on Wednesday.The releases further stated that the de-listed companies will again be allowed to operate in the capital market if they adhere themselves to the related provision by paying annual renewal charge.The de-listed companies include Nepal Electricity Authority (Bond-2069), Nabil Bank Limited (Bond 2075), Raghupati Jute Mills, Jyoti Spinning Mill, Nepal Finance Limited, Yak and Yeti Hotels Ltd and Nepal Welfare Company Limited, among others. Finance Minister hopeful about budget getting approved from parliament Even as the continued disruption of the House proceedings by the Maoist lawmakers has shelved major legislative works including endorsement of the budget bill, Finance Minister Surendra Pandey on Friday claimed that the budget will be passed within the next seven days in the parliament.The Finance Minister was clearly hinting that the government ordinance is not required to see the budget through, as some leaders are saying.Talking to media-persons in Bhadrapur of Jhapa where he reached today to inspect the flood-affected areas of the district, Minister Pandey said that the budget has already entered the parliamentary process and that there is no other option left but to have it approved from the parliament.He said the Maoist demands are political and not at all related with budget and assured that this is why the controversy on the issue will be resolved in the next seven days.Minister Pandey also said that the constitution will be prepared by the stipulated time and that there is no alternative left for the political parties but to reach a consensus to end the prevailing political deadlock. China to increase its assistance to Nepal by 50 pc The Chinese government expressed commitment to increase its grant assistance to Nepal by 50 percent. "The current annual grant assistance to Nepal will be increased to Rs 1.5 billion," Chinese ambassador to Nepal Qiu Guohong said while speaking at programme entitled "The Role of China in Nepal's Economic Development" organized in the capital.China had been contributing Rs. 1 billion annually as aid to Nepal's development."In order to consolidate trade and economic ties between the two countries, we will release soft loans to such projects that are contributing to uplift the living conditions of poor people," he said.According to him, China is always willing extend


assistance to Nepal's hydropower, road and tourism sector."China will gradually grant more assistance to Nepal and in the future too we will give assistance and will encourage Chinese enterprises to make investment in Nepal," he added.Ambassador Guohong also focused on Nepal-China relations and urged both countries to work for mutual benefit and stronger bilateral relations. Bhutan: Political:

• Depening democracy: paradoxical Paro conference Social: Economic: Geo-strategic:

• India to connect Bhutan projects with roads • Nepal-Bhutan talks on the card

Depening democracy: paradoxical Paro conference Bhutan hosted the three day international conference on “Deepening and Sustaining democracy” (12-14 Oct), jointly organized by the Center for Bhutan studies and UNDP. It should be a matter of pride for the government of Bhutan to hold such magnanimous conference with a bit of experience on democracy. But for the SAARC region it is quite a surprise. UNDP’s regional director for Asia-pacific, Ajay Chhibber and Bhutan’s Prime Minister Jigmi Thinley should have shared even greater happiness to have realized their idea conceived far-off in New York a year back.Certainly enough, Bhutan is not a champion of democracy which is gifted by the palace to politicians-turned- bureaucrats to try. Another cautious step to transition, Bhutanese democracy is a top-down approach carefully planned and handled by the former royalists who pretended and advocated democracy to be an ill form of governance, at least in Bhutan. Although the conference aimed to initiate sufficient dialogue on the models and components of democracy; failures and success of democracy in the region, it did so very little for the Bhutanese people themselves. India to connect Bhutan projects with roads Bhutan is constructing over a dozen hydropower plants with targets to generate some 11,000 MW of power by 2020, all to be absorbed in Indian markets. To all these projects, it is only Indian companies who are investing.Bhutan plans to generate 11,000 MW by 2020.India stopped some mega projects in Assam and Sikkim to drill Bhutan’s hyro potentials. For this to happen, a smoother transport is necessary connecting all project sites.The projects in Bhutan are to start their construction from early 2010. However,


considering Bhutan’s road network, it would be very tough time for Indian constructors to deliver human resources and material resources to the project sites.To ease the situation, the two governments have signed an agreement to build more roads connecting all these project sites, to ensure works are not interrupted due to transport problem.Top on the list is to improve the Gelephu –Santabari (Assam) road, which links mega projects like Punatshangchu I and II, Chamkarchhu I and Mangdechu plants.Two governments during the second annual consultation of the Bhutan – India Development Talks held in Thimphu on October 28 – 30 finalized the road construction plans.The government of India agreed for timely release of the fund for the construction.Besides, both the governments agreed to hold the first Small Development Projects Committee meeting by the first week of November. The committee will consider and approve the projects, relating to rural development proposed by local governments.The agreement on this effect was signed by foreign secretary Daw Penjo and the Joint Secretary, (North) of the ministry of external affairs, India, Satish C Metha. Nepal-Bhutan talks on the card For the first time in two years the democratically elected government of Bhutan is opening its mouth on the refugee issue, for long labeled as the issue of the “people in the camps in Nepal”. There has been sequence of heavy pressures on the new government from various sides. Will there be revised hope of repatriation?The pressure started with the start of resettlement of ‘people from camps’ to different first world countries and visit to Bhutan by the Senator John McCain’s delegation, last year. The high level US delegation had given an assignment to the then recently elected government in Bhutan. The assignment included three major and six minor deeds Bhutan was expected to carry out within a given time frame. They were preparation for the repatriation of the people in camp who are willing to return to Bhutan, establishment of the US Embassy in Bhutan, transparency in the use of grants from the donors, improvement in the diplomatic relation with Nepal to solve the refugee crisis bilaterally, guarantee of freedom and security of the people in the opposition, change in the law to accommodate all section of the population, no more eviction on whatever reasons, etc.Last month Foreign Minister Ugyen Tshering traveled to Washington to hand over the assignment which carried the bulk but a little content. The long report had one thing half positive. That was willingness of Bhutan to open an educational and cultural consulate in Thimphu instead of a full fledged US embassy. The shy FM met with Senator John Mc Cain and requested him to forward the assignment to White House. It was refused. The ultimatum must have been renewed or extended, or even warning must have been issued, Ugyen delegation returned with heat strong enough to make the leaders go rest less.They sought help of south block in Delhi, India, to crack new ideas to fool US and prolong the tact. Indian Home Minister P. Chidambaram had to rush to assist Bhutan’s ministers in the new chase move. On his way to Bhutan he used the transit time in Tribhuwan International Airport in Kathmandu by calling an emergency meeting with Nepal’s Home Minister Bhim Rawal and cautioning him to prepare for an immediate bilateral talk with Bhutan on the issue of the exiled Bhutanese. This unusual meeting of two home ministers during the usual transit of Druk Air in TIA was sufficient indicator of heat in the rulers.Not a coincidence Prime Minister


Jigme Y Thinley rushed to Japan to meet Sadako Ogata, one of the former heads of UNHCR. During her leadership in the refugee organization, Jigme Thinly as a minister under the former Monarch Jigme Singye Wangchuck had developed a warm rapport with her. She was even invited to Bhutan to strengthen the intimacy. Now she is one of the most powerful figures who can be a right third person to suggest and influence on the issue of exiled Bhutanese and possible say to the pressurizing parties what Bhutan rulers want to say. It is noteworthy to recall that immediately after her visit to Bhutan; she visited the refugees in camps in Nepal and assured them that she would see all the refugees back in Bhutan during her tenure. What next? Now, out of many strategic moves designed, one would be to call for a positive dialogue with Nepal on the issue of exiled Bhutanese. The government in Nepal is right for the Bhutan to deal with, as Nepalese Prime Mnister Madhav Kumar Nepal is as good a friend of Bhutan’s rulers as Sher Bahadur Deuba who had agreed for Bhutan’s proposal to categorize exiled Bhutanese into four groups.If anything is possible, bendable, melt-able and strike-able, it is now. So let’s expect Bhutan and Nepal will sit for a new round of talk and give pretext to the world to say that the work is going on for repatriation of the citizens expelled two decades back. However, for the exiled Bhutanese, there is not much to get excited right now. Myanmar: Political:

• U.S. delegation in Myanmar for rare junta talks Social:

• Contributors to winning best exhibitor award in China-ASEAN expo honored in Myanmar

Economic: Geo-strategic:

• S. Korean shipbuilder wins US$1.4 bil. Myanmar order U.S. delegation in Myanmar for rare junta talks A delegation of senior U.S. officials arrived in Myanmar for Washington's highest-level talks with the reclusive military regime in 14 years.The Obama administration's move to engage the junta appears focussed on pushing for free and fair elections next year, although analysts say the rapprochement is as much about geopolitics and the growing regional influence of China.Assistant Secretary of State Kurt Campbell leads the delegation meeting the junta in its new capital Naypyidaw before travelling to Yangon for talks with detained Nobel laureate Aung San Suu Kyi and her National League for Democracy (NLD) party.The United States has said little ahead of the two-day visit, widely seen as exploratory dialogue to see how sincere the notoriously distrustful


generals are about democratic reforms."The U.S. wants to suss out whether or not they have a genuine dialogue partner," said Sean Turnell, a Myanmar analyst at Australia's Macquarie University."The overtures towards warming ties with the U.S. have come from officials lower down and the U.S. is trying to get a feel for how committed the generals are."Campbell met Myanmar's minister of science, technology and labour in New York in September after Washington announced it would pursue deeper engagement to try to spur democratic reform.Burma, insisting dialogue would "supplement rather than replace the sanctions regime."A government source in Naypyidaw said Campbell, the highest-ranking U.S. official to visit Myanmar since Madeleine Albright in 1995, was expected to meet with government ministers and senior junta figures, including Prime Minister Thein Sein."But he's not likely to meet the senior general," said the source, referring to Than Shwe, the junta supremo who has led the country for the last 17 years.Critics of the regime say it could be using the U.S. visit for its own gain, to try to give legitimacy to its democratic "road map" and show key ally China, its economic lifeline, that it is not its only friend.Than Shwe's snub is being seen as an indicator of the generals' commitment towards reforms and a sign of whether the U.S. engagement can really be effective."Avoiding Campbell means the senior general is not ready to compromise. I think he will fall short of the expectations of the new U.S. administration," said a retired civil servant in Yangon.Thakhin Chan Tun, a retired diplomat, added: "We can't expect any tangible immediate results...Than Shwe is the one who makes all the decisions on all important policy issues."Some analysts say that with ties strained between China andMyanmar - over instability along their border - the generals are keen to reduce their reliance on Beijing and have sought to shore up ties with India, Russia and their Southeast Asian allies."Burma's ties with China may have been exaggerated and it might want to show that it can function independently," said Christopher Roberts at the University of Canberra.Campbell is due to meet Suu Kyi, who has spent 14 of the last 20 years in some form of detention, on Wednesday. The junta last month allowed her to meet Western diplomats to discuss sanctions on the country. Contributors to winning best exhibitor award in China-ASEAN expo honored in Myanmar The Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) has honored persons who contributed to the winning of some exhibition-related awards in the recent China-ASEAN Expo held in Nanning, capital of Southwest China' Guangxi Zhuang Autonomous Region, sources with the UMFCCI said on Monday. UMFCCI is Myanmar's biggest private business organization. Myanmar won the best exhibitor award and best trade visitor organizer award in the 6th China-ASEAN Expo held from Oct. 20 to 24, attended by over 200 businessmen of 83 companies from the country. Persons honored on Sunday are those who contributed and drew designs for the national pavilion and the commodity pavilion, the sources said. According to the UMFCCI, Myanmar won some investment memorandums of understanding from Chinese companies during the recent China-ASEAN Expo held in Nanning. These prospective investments include those in the sectors of mining, hydropower, agriculture, value-added wood processing and gem production. Myanmar entrepreneurs, who attended the expo, were from such sectors as agriculture, fishery, industry, manufacturing, gems, traditional handicrafts,


forestry and hotel and tourism. Myanmar booth on display at the just-ended expo highlighted the Muse border town as a town of facilitating trade and cooperation in levying tariff. Since joining the China-ASEAN trade fair in 2004, Myanmar booth featured the commercial hub of Mandalay in the second trade fair, tourism site of ancient city of Bagan in the third fair, port city of the former capital Yangon in 4th fair and cyber city of Yadanarpon in the 5th fair. The country won the best booth, best design and best creativity awards in the 4th China-ASEAN trade fair in 2007 and best booth award again in the 5th China-ASEAN trade fair. Meanwhile, Myanmar will open a business representative office in Nanning, next year in a bid to promote business links between the two countries especially with the region. The Myanmar representative office, to be jointly set up by the Ministry of Commerce and the UMFCCI, will display gems and gem products, forest and marine products and agricultural produces. China's Nanning and Myanmar's Yangon established friendship city relationship in July this year. According to Chinese official statistics, China-Myanmar bilateral trade amounted to 2.626 billion dollars in 2008, up 26.4 percent. Of the total, China's export to Myanmar took 1.978 billion dollars. S. Korean shipbuilder wins US$1.4 bil. Myanmar order South Korea's Hyundai Heavy Industries, the world's largest shipbuilder, it has won a US$1.4 billion deal to build an offshore gas platform in Myanmar. It said it secured the order from Daewoo International, a South Korean trading company which is leading a consortium to develop the gasfield off Rakhine state near the border with Bangladesh.

EAST ASIA Business and Politics in Muslim World

South East Asia

Tatheer Zahra Sherazi

16 October to 23 October 2009

(Outline)

Summary Indonesia

• Political front: 10 • Indonesia’s Yudhoyono sworn in • Yudhoyono unveils cabinet


• Geo-strategic Front 10 • Indonesians "Threaten" To Close Border • Vessels in Malaysian and Indonesian waters in distress • Economic Front 11 • Indonesia targets 7% growth • Five Indonesian banks set to launch Islamic units • Social front 12 • Going down the road to meet South Asia? • Indonesia: Earthquake Situation Report No. 16 • Environmental Front

Malaysia • Political Front 15 • No Reason For Opposition To Disrupt State Assembly Sitting - Najib • Malaysia's ruling party has out-Islamized the opposition • Malaysia's Judiciary Should Look Beyond Own Borders, Says Raja Nazrin

Shah • PAS Faces Serious Leadership Problem, Says Muhyiddin • Foreign Relations • Economic Front 19 • ASEAN Leaders Says Free Trade Area Is On Track • Malaysian PM unveils budget with vow to cut deficit • Social Front 22 • Beyoncé postpones Malaysia show targeted by Islamic party • Recovery of economy expected next year, says Deputy Finance Minister • Malaysia hails Kuwait''s role in solving Muslim food shortage • Sodomy Case: Court Rejects Anwar's Objection(pol,social)

Philippine • Political Front • Foreign Relations 25 • US role in talks double-edged . • Economic Front 27 • World Bank sees economy picking up in Philippines • Social Front 28 • Philippines calls for help to address disease outbreak in storms' aftermath • Lupit weakens, keeps Philippines on edge • Disease threatens survivors of floods • Separatist groups seeks help in reaching peace deal . • Environmental front

Thailand • Political Front . 33 • Cambodia denies offering Thaksin home • PM tries to ease Democrat rifts • Foreign Relations 34


• Myanmar Won't Allow Thailand's Foe To Use Its Soil, Says PM(social,polirical)

• Economic Front 35 • Why the Thai king's health can panic markets • Promoting Peace Through Organic Farming in Thailand • ASEAN-Korean trade rises 23.4 per cent ahead of pact • Asian summit to tackle economic crisis • Thai cabinet approves investment projects worth $7 bln • SC Bank: GDP to rebound in 2010 • At Social Front 40 • Despite Outreach, Violence Is Up In Southern Thailand

Singapore • Political Front • Foreign Relations 41 • S'pore ready to resume talks with Indonesia on defence agreement • Economic Front 42 • MM Lee says China and India growth will result in new world order • Analysts say office rental slide a necessary correction • S'pore today is a result of effort put into building country: MM Lee • opportunities for more S'pore firms in Tianjin Eco-city projects • Social enterprises no different from normal businesses & must be viable • SBF says recent Iran business mission will attract sales of S$85m • Economic crisis an opportunity to push for green tech: Dutch minister • Environmental Front • At Social Front

Vietnam • Political Front 45 • Vietnam PM assures full cooperation • Foreign Relations • Geo-strategic front • Economic Front 47 • Survey shows govt, FIs need to boost efforts to help SMEs • Vietnam Targets Economy to Grow by 6.5% Next Year • Lawmakers want lower budget deficit target next year • Social Front 49 • Situation Report Vietnam – Typhoon Ketsana Oct 2009 • Vietnam to import additional 10,000 tons of sugar this year • Environmental Front

Cambodia • Political Front 50 • Cambodia parliament votes to limit mass demonstrations • Foreign Relations 51 • Cambodia will not extradite Thaksin on Thailand’s request • Economic Front 51


• Chinese loans to Cambodia • Social Front 52 • Hungry in Cambodia: Flood affected communities are still waiting for food

assistance • Environmental Front 53 • Cambodian PM blames wealth countries for climate change

Laos • Political Front • Foreign Relations 53 • Laos, China pledge deeper relationship • Economic Front 54 • Vietnam?s firm to explore copper ores in northern Laos • Laos, Thailand to double trade by 2010 • Savannakhet expects GDP rise by 13 % • At Social Front 55 • Laos just reports 17 dead victims from Ketsana, while welcoming emergency

aid • USAID gives US$320,000 to disabled people in Laos. • Japan grants relief aid to flood victims in southern Laos

Brunei

• At political Front 58 • Employment Order 2009 Passed • ‘Connectivity For An Asean Community' • At Economic Front 62 • Privatization Plan To Be Ready In A Year • Goal To Increase Awareness In Energy Efficiency & Conservation • At Social Front 64 • Ostrich meat gains popularity in Brunei(social, co)

Summary At political Front

• Indonesia Susilo Bambang Yudhoyono has become the first Indonesian president to be sworn in for a second term, consolidating political stability in the sprawling southeast Asian archipelago.


He was re-elected in July on a platform of reform and economic growth, and this could mean that his new cabinet would comprise more business professionals and fewer career politicians.

Indonesian President Susilo Bambang Yudhoyono unveiled his new Cabinet on late Wednesday night with much fanfare but few surprises.Many of the names had leaked out over the past few days, and have been summed up by analysts as a mixed bag .

• Malaysia In Malaysia’s current political climate, it is no longer possible to distinguish Islamic

radicals from Islamic moderates. Despite official boasting about the country’s diverse population and commitment to pluralism, Islam and the government have essentially merged. For two decades, the ruling United Malays National Organization (UMNO) government invested enormous public resources in building up a network of Islamic institutions. The government’s initial intention was to deflect radical demands for an extreme version of Islamic governance. Over time, however, the effort to out-do its critics led the UMNO to over-Islamicize the state. The proposal by PAS Spiritual Leader Datuk Nik Aziz Nik Mat for a PAS special general assembly to cleanse the party of pro-unity government leaders shows that PAS is facing a serious leadership problem, Deputy Prime Minister Tan Sri Muhyiddin Yassin said on Saturday. Acknowledging that the Nik Aziz proposal was a PAS domestic affair, he said it nevertheless showed an obvious clash of opinions in the opposition party.

• Thailand A senior Cambodian official yesterday denied that Cambodian Prime Minister Hun

Sen offered Thailand’s former prime minister Thaksin Shinawatra a home in Cambodia. Cambodian Information Minister Khieu Kanharith said Hun Sen had been misquoted by the media. “He didn’t say that,” Khieu Kanharith said. “Some people have said we would allow Thaksin to have a permanent home in Cambodia - it’s not true.”

Prime Minister Abhisit Vejjajiva has been called on to repair a potential rift over charter amendments threatening to cause chaos in his ruling Democrat Party.Mr Abhisit yesterday spoke to party MPs at a meeting called after several publicly voiced disagreement with the party's move to support the six-point constitution rewrite proposed by the government, opposition and senate whips. At Foreign Relations Front

The declaring bitter truth is that Moro Islamic Liberation Front (MILF) leaders want to establish an independent state made up of the majority of the Filipino Muslims (who see the Philippine Republic as their country) and the minority of militant Muslims here who, like the MILF leaders, despise our Republic. A less painful resolution of the conflict between the government and the various MILF bands and the MILF leaders (who seem incapable of enforcing discipline among their commanders and followers) is the formation of an autonomous Bangsamoro state, or two or several Bangsamoro states, within a new federal system of the Philippine Republic. At Economic Front

• Indonesia INDONESIAN President Susilo Bambang Yudhoyono said on Friday his new

economic team was aiming to achieve seven percent growth by the end of his final term in office.


On the first full day at the helm of his new cabinet, which was sworn in Thursday after July presidential polls, Mr Yudhoyono promised to return Southeast Asia's biggest economy to pre-crisis growth levels by 2014. He also promised 'growth that is inclusive and fair' and reduces poverty in the mainly Muslim archipelago of 234 million people. Five Indonesian banks including Bank Central Asia (BBCA.JK), the No. 3 lender, expect to launch standalone sharia units next year, boosting the sharia market in the world's most populous Muslim nation, officials said. Industry officials said the revised law on value added tax, which removed double taxation in the Islamic market, would encourage more banks to set up Islamic banking subsidiaries. The double taxation had made Islamic transactions more expensive than comparable conventional deals.

• Malaysia The 10 South East Asian countries have reiterated that the realisation of the Asean

Free Trade Area (AFTA) on Jan 1, 2010 is well on track, despite scepticism over some members' commitment in cutting tariff for major agricultural products. Malaysia’s prime minister unveiled his maiden budget yesterday, promising to slash the 2010 deficit from its highest level in more than 20 years, although he provided few clues as to how the cuts would be realised. Najib Razak, who is also finance minister, told parliament the budget deficit would fall to 5.6 percent of gross domestic product in 2010 from a forecast 7.4 percent this year in a move that is seen boosting domestic bonds as issuance slows. The country’s economy is expected to recover next year by recording a positive growth that will create employment opportunities, said Deputy Finance Minister Datuk Dr Awang Adek Hussin. He said the confidence and projection hinged on the growth of the world economy as it was heading towards recovery.“In the first and second quarters, the country’s economy had registered negative growth like the world’s economy. “However, the contraction of the country’s economy at the end of the second quarter was smaller at 3.9% against between 6% and 7% in the previous quarter,” he told reporters after opening the Islamic College of Science and Technology’s second convocation here on Sunday.Awang Adek said for Malaysia, the retrenchment experienced during the economic slowdown was a temporary experience. “As the economy picks up, the investment will increase, definitely more jobs will be created. Retrenched workers will be rehired.

• Philippine The World Bank said it no longer expected the Philippines to sink into recession in

2009, noting that the country’s macroeconomic fundamentals proved to be better than earlier anticipated.Bert Hofman, the bank’s country director for the Philippines, said in a speech before members of the business community yesterday that the multilateral lending institution was taking back its earlier pronouncements that the domestic economy would contract in 2009. Hofman said the World Bank saw the Philippines registering a minimal growth.

• Thailand Asian leaders meet in Thailand amid tight security this weekend to discuss ways to deepen economic ties and sustain the region’s rebound from the recent global downturn,


officials said.A long-awaited but controversial rights body is also set for its official launch, while leaders are expected to grapple with climate change and how to improve the way they deal with natural disasters. Thailand's cabinet approved on Tuesday more projects worth about 230 billion baht ($6.9 billion) under a three-year government investment plan to revive the economy, Finance Minister Korn Chatikavanij said.

• Singapore Singapore Minister Mentor Lee Kuan Yew said that the growth of twin giants China

and India will result in a new world order, even if in the absence of a global financial crisis.

• Vietnam Vietnam is targeting economic growth of 6.5% in 2010 against expected growth of

5.2% this year, aided by a flexible monetary policy that will also help contain inflation, Prime Minister Nguyen Tan Dung said.Gross domestic product is projected to be 1,931 trillion dong ($106 billion) in 2010,

• Cambodia China will provide 853 million US dollars in loans to Cambodia for infrastructure,

irrigation and dam projects to boost its economy and reduce poverty.Cambodia's foreign minister says the agreement was clinched on Friday when Chinese Premier Wen Jiabao met Cambodia's Prime Minister Hun Sen on the sidelines of an economy and trade fair in Sichuan.

• Laos Laos and Thailand have reached a consensus to double the volume of the two-way trade by 2010 as compared with this year?s figure, requiring Laos?s exports to Thailand to triple the current value. The two sides are preparing to draw up a plan to boost trade by 2010, which is seen to be feasible as Thailand has taken the lead among foreign investors in Laos over the past nine years. Thailand is currently investing in 216 projects representing USD 2.5 billion in Laos. China ranks second, with over USD 2.1 billion in 303 projects, followed by Vietnam with over USD 1.9 billion in 189 projects. At Social front

• Malaysia US singer Beyoncé Knowles has postponed her concert in Malaysia planned for this

weekend, organizers said, denying that the move was linked to threats of protests by Muslim groups. A Malaysian official on Sunday extolled Kuwait's role in the alleviation of food shortage in the Muslim world by creating a financial fund for the purpose. The fund was announced by Kuwait during the 4th World Islamic Economic Forum (WIFE) held in Kuwait in 2008. Datuk Seri Anwar Ibrahim on Friday failed to prevent the Court of Appeal from hearing the prosecution's appeal against the High Court's order for the prosecution to supply documents to him.This follows the Court of Appeal's dismissal of Anwar's preliminary objection to strike out the prosecution's appeal. Mohamed Yusof, in the prosecution's appeal, submitted that the High Court judge was wrong in his decision when he said Anwar had the right to know everything, prior to his sodomy trial.


He said Section 51 of the CPC did not allow Anwar access to the evidence in possession of the prosecution until the trial."Section 51 refers to the documents which the applicant (Anwar) already knows of, not for the purpose of a fishing trip," he said.The hearing continues on Oct 30.

• Philippine The WHO on Thursday said the Philippines is requesting "international help to fight a

deadly outbreak of an infectious disease following two devastating tropical storms," Agence France-Presse reports. Parts of Manila, which are still flooded almost four weeks after Tropical Storm Ketsana hit, are experiencing an outbreak of the bacterial infection, leptospirosis


Detailed News Monitoring Report

Indonesia

• Political front: • Indonesia’s Yudhoyono sworn in

Susilo Bambang Yudhoyono has become the first Indonesian president to be sworn in for a second term, consolidating political stability in the sprawling southeast Asian archipelago. He was re-elected in July on a platform of reform and economic growth, and this could mean that his new cabinet would comprise more business professionals and fewer career politicians.

• Yudhoyono unveils cabinet Indonesian President Susilo Bambang Yudhoyono unveiled his new Cabinet on late Wednesday night with much fanfare but few surprises.Many of the names had leaked out over the past few days, and have been summed up by analysts as a mixed bag. The line-up ranges from respected, hand-picked technocrats to political appointees from the President's six-party coalition who do not have the track record he will need to push much-needed reforms.Dr Yudhoyono called the 34-member team Kabinet Indonesia Bersatu Kedua (Second United Indonesia Cabinet). 'This is the team who will work hard in the next five years to enhance prosperity in the country,' he said at a press conference at the Istana Negara. One surprise was the new health minister, Dr Endang Sri Rahayu Sedyaningsih, the head of research and development at the Health Ministry. Prominent eye surgeon Nila Moeloek was widely reported earlier to have been slated for the post.

• Geo-strategic Front • Indonesians "Threaten" To Close Border

Timor-Leste born Indonesian citizens living in Atambua-Kupang-Indonesia, have threatened to set up checkpoints or sweeps vehicles with Timor-Leste white registration number plates because of the detention of the former Laksaur Militia Commander, Maternus Bere who is still detained at the Indonesian Embassy in Dili. "We will undertake sweeps (checkpoints) of cars belonging to Timorese who travel in and out of Indonesia. This action will be taken especially against the sons and daughters of FRETILIN leaders including FRETILIN cadres who live near the border," Francisco Soares Pereira told STL by telephone Friday (15/10).

• Vessels in Malaysian and Indonesian waters in distress The Australian Maritime Safety Authority (AMSA) is helping Malaysian and Indonesian agencies after two boats were reported being in distress, the Australian Associated Press (AAP) reports. Hundreds of people believed to be heading to Australia are reportedly aboard the vessels, but there is no confirmation at this stage that they are asylum seekers.Australia's Deputy Prime Minister Julia Gillard said on Sunday that the government was trying to strike a balance between deterring people smugglers and treating asylum seekers humanely.The AMSA is involved in the operation to assist about 270 people on board the two boats in


Indonesian and Malaysian waters. The operation is being led by search and rescue authorities from Malaysia and Indonesia.A spokesperson for Australia's Home Affairs Minister Brendan O'Connor said Canberra had been briefed on the situation."The Australian government is aware of reports of two vessels possibly in distress in waters close to Indonesia and Malaysia," AAP quoted the spokesperson as saying. "The Indonesian and Malaysian search and rescue authorities are the lead agencies. However, the Australian government through AMSA is providing assistance to these agencies."At the request of AMSA, HMAS Armidale has made contact with the vessel 296 nautical miles northwest of Christmas Island and 120 nautical miles from Sumatra."All the people on board the vessel are safe and no major medical problems have been identified. The intention of this group is not known at this point,' he said. One of the boats was reportedly sinking in Malaysian waters, the TV Nine Network reported Saturday. The second boat was spotted off the coast of Indonesia. The situation unfolds as a group of Sri Lankan asylum seekers in Indonesia ended a hunger strike.The boat, carrying more than 250 ethnic Tamils, was intercepted last weekend by the Indonesian navy en route to Australia and taken to the Javanese city of Merak. Prime Minister Kevin Rudd is reportedly seeking a new strategic agreement with Jakarta to halt the transit of asylum seekers through the Indonesian archipelago to Australia.

• Economic Front • Indonesia targets 7% growth

INDONESIAN President Susilo Bambang Yudhoyono said on Friday his new economic team was aiming to achieve seven percent growth by the end of his final term in office. On the first full day at the helm of his new cabinet, which was sworn in Thursday after July presidential polls, Mr Yudhoyono promised to return Southeast Asia's biggest economy to pre-crisis growth levels by 2014. He also promised 'growth that is inclusive and fair' and reduces poverty in the mainly Muslim archipelago of 234 million people. The government has predicted growth of 4.0-4.5 per cent this year, third only to China and India in the G-20 club of rich and major developing countries. The economy grew 6.1 per cent in 2008.Addressing the inaugural session of the new cabinet, Mr Yudhoyono said seven per cent growth could have been reached this year but for the impact of the global downturn on the domestic economy. Mr Yudhoyono's new coordinating minister for the economy, Hatta Rajasa, earlier said that while the government was aiming for seven per cent growth by 2014, a longer-term eight per cent target was 'achievable'.

• Five Indonesian banks set to launch Islamic units Five Indonesian banks including Bank Central Asia (BBCA.JK), the No. 3 lender, expect to launch standalone sharia units next year, boosting the sharia market in the world's most populous Muslim nation, officials said. Industry officials said the revised law on value added tax, which removed double taxation in the Islamic market, would encourage more banks to set up Islamic banking subsidiaries. The double taxation had made Islamic transactions more expensive than comparable conventional deals. "We hope that it would be easier for us to expand business and seek strategic partners. We also hope to grow faster and attract investors from Middle East," said Barno


Sudarwanto, head of planning and development at the sharia unit of Bank Negara Indonesia (BBNI.JK), the No. 4 bank, which will be spun off. Others due to set up separate sharia banking units include mid-sized lenders Bank Panin (PNBN.JK), Bank Victoria (BVIC.JK) and unlisted Bank Jabar Banten.Investor Daily newspaper on Friday reported that a U.S. insurance firm had met with central bank officials this week to discuss the possibility of

• Social front • Going down the road to meet South Asia?

On a weekend evening in Bangkok’s upmarket Nanauna area, a few Pakistani expatriates toasting scotch in a corner of Akbar Restaurant fiercely debate the future of their native country. A long bearded Pakistani supporting a skullcap – who could have been dismissed as a ‘maulana’ or a rector of a ‘madrassa’ but for the choicest whisky on his table – blames former president Pervez Musharraf for Pakistan’s ills. The debate gets shriller, with some siding with Musharraf, others charging President Asif Ali Zardari and some even going further into the past to target Gen Yahya Khan. But the owner of the restaurant – Muhammad Akbar, now a Thai national who recently visited his native city of Sialkot – ends the fiercely contested argument, blaming the Americans for the tribulations. All, highly inebriated heads nod in agreement. Asked if Muslims face discrimination, Akbar Ahmed – a resident of Bangkok for the last 40 years – says the 2002 Bali bombings in nearby Indonesia and the 9/11 attacks in America have changed their lives. “We feel piercing eyes looking at us with suspicion even after having spent the major part of our lives here,” he says. Another expatriate, Shahid, also agrees that things have changed for Muslims and Pakistanis the world over. However, he says that news of instability and terrorist attacks back home are even more disturbing. In the other, far end corner of the city, more than 30 Muslim activists and representatives from Thailand, Indonesia, Malaysia, Myanmar, the Philippines and Cambodia have gathered at the Bangkok Islamic Centre to discuss “military campaigns” against Muslims in Southeast Asia. The region may seem composed in comparison to Afghanistan, Pakistan, Kashmir and Iraq, but Muslim-dominated provinces in three countries – Arakan in Myanmar, Mindanao in the Philippines and the southern provinces of Yala, Narathiwat, Patani and Satun in Thailand – are reeling from insurgencies and daily rounds of gunbattles and bombings. In all three conflict zones, millions have been killed, displaced and made refugees either in their own countries or other countries. Generations of Rohingyas, Moros and South Thai Malays have been witness to violence, deprivation and tragedy. Like India, these governments – exploiting the war on terror – have, of late, sold these conflicts as part of terrorism and hardline Islamism, seeking sympathies and aid from the West. Speaker after speaker at the Bangkok Islamic Centre conference dismiss this analogy, saying all three conflicts stem from local grievances embedded in social, economic, political and civic dimensions. The executive director of Penag-based Citizens’ International, Mohideen Abdul Kader, told Daily Times that these conflicts – raging on for several years without any resolution – involve the right of self-determination to indigenous communities. He also pointed out


that unless the conflicts are tackled and redressed effectively and justly, the worsening spread of their impact could spill over national borders. These groups at the conference, in a “Bangkok Declaration”, called on ASEAN governments to engage with the governments of Myanmar, Thailand and the Philippines to end human rights abuses and find peaceful solutions to the problems. Last Monday, 200 Thai security personnel raided an Islamic school in the southern part of the country, detaining 60 students and religious teachers for questioning. At least 4,000 killings have been reported in the region since 2004. The emergency laws imposed in the region in July 2005 authorise military to detain suspects for interrogation for 30 days without charge. The raid came two days after a group of suspected Muslim insurgents opened fire on a high-ranking civil servant’s motorcade in the area. But in these areas too, insurgents have killed more fellow Muslims than rival Buddhists or security forces. They killed a 49-year-old Muslim cattle raiser and a butcher on suspicion of being informers. A tailor’s shop was bombed for selling police uniforms. Recently, insurgents killed a former 60-year old guerrilla leader, Waedolah Wae-u-Seng, along with his daughter, son-in-law and two grandchildren. The teacher-turned-leader had abandoned guns and mellowed down as a politician. As I leave Thailand, reports from Southern Yala provinces say soldiers have take up position in a marsh in a joint operation with police to flush out suspected insurgent leader Nurisan Wani along with his group hiding near Batan Mountain in Muang district. The news sounds familiar. We have it in abundance in Kashmir, Afghanistan and now in Pakistan.

• Indonesia: Earthquake Situation Report No. 16 This report was issued by OCHA New York, with inputs from OCHA Indonesia. It covers the period from 16 October 2009 to 20 October 2009. The next report will be issued on or around 23 October 2009.

• HIGHLIGHTS/KEY PRIORITIES Shelter remains the biggest unmet need. • Only 20 percent of the population in Padang city is connected to water

distribution network. • Latest official figures on the impact of the earthquake and the landslides to be

released on 21 October. • UNDP's Human Recovery Needs Assessment (HRNA) to be presented to the

National Disaster Management Agency (BNPB) on 21 October. • Education sector still requires further funding to carry out emergency operations.

II. Situation Overview The Government of Indonesia is expected to release village-level impact data on 21 October which will provide a detailed baseline for reviewing needs, priorities and the geographic distribution of relief agencies and activities. There are more than 2.5 million people living in the six most affected districts, although damage will be most severe in areas close to the epicentre, as shown in the map above. OCHA has prepared an extensive set of baseline village information to make full use of the damage data as soon as it is available. The National Disaster Management Agency (BNPB) reports that all isolated areas have now been reached but humanitarian organizations are still responding to reports from remote communities who say they have not received any assistance. Shelter remains the biggest need in affected areas. Distribution of emergency shelter continues to be the focus of the majority of agencies. The current lull in shelter distributions is due to pipeline


delays which are expected to be resolved next week. The upcoming rainy season could raise the risk of further landslides in some of the affected areas. The Government of Indonesia plans to commence recovery activities from 1 November, but as detailed in the Humanitarian Response Plan (HRP) emergency activities will continue for another two months. Once the recovery phase begins, all NGOs will need to be registered with the government to continue their operations.

• Environmental Front Malaysia

• Political Front • No Reason For Opposition To Disrupt State Assembly Sitting - Najib

Opposition State Assemblymen in Perak have no reason to disrupt the Perak State Legislative Assembly sitting scheduled for Oct 28, said Prime Minister Datuk Seri Najib Tun Razak. He said this was because the State Assembly sitting was being held by the Barisan Nasional (BN) state government in accordance with the law."Although there is a (legal) process which has yet to be completed, we must respect the sanctity of our constitution."So, there is no reason why there should be any disruption or any act that can create a negative situation in terms of the public perception on politics in Perak," he told reporters after having a closed-door meeting with the Perak Umno leaders at the Perak Umno building, here Sunday.He reminded opposition leaders in Perak that the change in the Perak state government in February was due to the 'game' played by the opposition themselves."Don't forget the starting point was when they stole one of our ADUN (State Assemblymen). That is their starting point, so they played the game actually... not us," he said.Najib, who is also the Umno president, explained that the closed-door meeting with the Perak Umno leaders today was a follow-up to the Umno general assembly which concluded on Friday where he had emphasised on several matters in the form of action that could be translated at the state, division and branch levels. He said he also launched the Perak Umno song at the closed-door meeting which he felt would inspire all Umno members in Perak.

• Malaysia's ruling party has out-Islamized the opposition In Malaysia’s current political climate, it is no longer possible to distinguish Islamic radicals from Islamic moderates. Despite official boasting about the country’s diverse population and commitment to pluralism, Islam and the government have essentially merged. For two decades, the ruling United Malays National Organization (UMNO) government invested enormous public resources in building up a network of Islamic institutions. The government’s initial intention was to deflect radical demands for an extreme version of Islamic governance. Over time, however, the effort to out-do its critics led the UMNO to over-Islamicize the state. The UMNO’s program has put Sharia law, Sharia courts, and an extensive Islamic bureaucracy in place, a collective effort that has taken on a life of its own. The number of Islamic laws instituted has quadrupled in just over 10 years. After Iran or Saudi Arabia, Malaysia’s Sharia court system is probably the most extensive in the Muslim world, and the accompanying bureaucracy is not only big but has more bite than the national Parliament.


Islamic laws in Malaysia are based on religious doctrine but codified and passed as statutes by state parliaments. Not much debate attends their enactment, because a fear of heresy keeps most critics from questioning anything deemed Islamic. While the UMNO still trumpets its Islamic advocacy, the party is facing difficult choices, particularly as it wishes to maintain foreign investment in an increasingly polarized environment. For example, Minister of Home Affairs Hishamuddin Hussein recently held a press conference to support Muslims who demonstrated against the construction of a Hindu temple in their neighborhood. The protestors paraded a severed, bloodied cow’s head in the street, then spat and stomped on it. This was an offense to Malaysia’s Hindus, who consider the cow a sacred animal. Just a week earlier, a young mother by the name of Kartika was sentenced by Malaysia’s Sharia court to six lashes by cane and fined $1,500 after she was caught drinking beer at a hotel. Although the sentence is still in limbo, Hussein publicized his acceptance of the punishment by inviting the official floggers to his office to demonstrate how an Islamic caning would be carried out. They used a chair as a mock target, leaving him satisfied that Islamic caning can be appropriately used as a punishment for women. Ironically, Hishamuddin Hussein is far from an Islamic hardliner. The son of Malaysia’s third prime minister and a cousin of the current prime minister, Hussein is widely considered modern, moderate, and cosmopolitan. A true hardliner is Nik Aziz, the chief minister of Kelantan state, who is also the spiritual leader of Malaysia’s largest Islamic party, PAS, which now controls two state governments. However, Aziz opposed the anti-Hindu protest, even calling a group of anti-Muslim protestors in the United Kingdom more civilized in their approach. Hence, it is no longer accurate to think of the PAS as a fundamentalist party and the UMNO as moderate. Party strategies are leading them in unexpected directions. The UMNO’s more radical turn is being matched by the PAS’s attempts at moderation. The PAS is aiming for the most unlikely of voters: non-Muslims, who account for 40 percent of Malaysia’s population and are increasingly alienated from the UMNO.

• Malaysia's Judiciary Should Look Beyond Own Borders, Says Raja Nazrin Shah

Malaysia's judiciary should look beyond the national borders and adopt more international human rights thinking and standards in arriving at legal decisions, the Raja Muda of Perak, Raja Dr Nazrin Shah, said on Saturday. It was not about imitating others, he said when addressing scores of Malaysia's senior jurists and judicial administrators when opening the Judicial Colloquium on Human Rights, here."It is about seeking solutions to local problems by consulting universally accepted standards. It is about drawing on the experience of others who have faced similar problems," he said. Raja Dr Nazrin Shah said this was the normal practice in most advanced countries now and there should be no reason for Malaysia not do so as well.He said human rights commissions in other countries had undertaken the role of "amicus curie" or friends of the courts and offered expert opinions on human rights issues. When it came to upholding human rights, the buck stopped squarely on the steps of the Palace of Justice, he said, adding that there was no more important body than the


judiciary which, by virtue of its role and functions, upheld the constitution and the rights accorded to the citizens. However, he said, this was both an enviable and unenviable position to be in.On the positive side, he said the courts had the power to shape society by elevating social standards of behaviour and practice but on the negative side, the courts were quite often criticised for either not enforcing human rights or only doing so superficially."In my view, there is no more important body than the judiciary. Its role and function as the upholder of justice means that it can render new and continually relevant meanings to the fundamental liberties embodied in the constitution," he said. He said the issues of justice could only be resolved with a fair hearing and impartial and consistent application of the law and it required great boldness."People will not always take kindly to decisions; and there will be opposing views, based, I suppose, on where one's interests lie."As a result, we have today quite a number of social and political issues that, for one reason or another, become deadlocked and rendered virtually intractable," he said. The Raja Muda said human rights could not be a reality until all Malaysians respected and observed them. Raja Dr Nazrin Shah said that in the new environment today, governments were influenced by the global interconnectedness, by more educated and empowered citizens, and the need to be more responsive to their electorate. In regard to this, he said, new forms of human rights engagement within the governments should be made, such as between the executive and judiciary; between the government and the public; and between the country and the international community. He also said that those in government need to be made to understand and internalise fundamental human rights principles. He also said that it was critical for the courts, in interpreting the constitution, to try and uncover the original intent behind its articles.He added that the integrity, independence and impartiality of the courts were an absolute must, if they were to discharge their duties faithfully.He said the Human Rights Commission of Malaysia (Suhakam) should be co-opted in a much more vital and constructive manner."There is a growing list of human rights matters that require attention and Suhakam can play a proactive role in engaging with parliamentarians and government agencies in the formulation or review of laws and procedures," he said. The UMNO, meanwhile, is intent on dividing the opposition coalition, of which the PAS is a member. The coalition is currently led by former Deputy Prime Minister Anwar Ibrahim, and has picked up political momentum from real gains in last year’s general election. Concerned by its losses, the UMNO has staked a claim to the defense of Islam in Malaysia. The “cow head” protest, which was led by UMNO members, quickly fuelled racially-charged manipulation of public sentiment. The formula is simple: portray Islam as being threatened by infidels, and then have the UMNO ride to the rescue of the besieged Muslim community. The caning of Kartika, on the other hand, is not an example of political manipulation, and for this reason is perhaps even more worrisome. Her sentence was roundly supported by modernist Muslim intellectuals, who insisted that the punishment was justly applied and cannot be questioned because it has divine sanction. These are not politicians, but former


idealists who are happy that their goals of Islamicizing the state are being realized. Most are anti-UMNO and support the PAS. As a result, the UMNO finds itself squeezed between an Islamic lobby that presses for greater “Talibanization” of the country and the rising voices of international critics, who cannot be ignored, because the party needs both radical supporters and foreign investors to stay in power. Balancing these two constituencies is becoming increasingly difficult for the UMNO. Islamic politics has now taken on a life of its own. But the opposition will also be forced to figure out the role of religion in Malaysia, if ever they get an opportunity to form a government. As a young Islamic radical, Anwar Ibrahim used to ask: How does one Islamicize government? Now he has to figure out how one governs it.

• PAS Faces Serious Leadership Problem, Says Muhyiddin The proposal by PAS Spiritual Leader Datuk Nik Aziz Nik Mat for a PAS special general assembly to cleanse the party of pro-unity government leaders shows that PAS is facing a serious leadership problem, Deputy Prime Minister Tan Sri Muhyiddin Yassin said on Saturday. Acknowledging that the Nik Aziz proposal was a PAS domestic affair, he said it nevertheless showed an obvious clash of opinions in the opposition party. Muhyiddin, who is also Education Minister, was asked to comment on the proposal by Nik Aziz, who is the Kelantan menteri besar, in his blog http://www.blogtokguru.com calling for the special assembly to change "two or three" problematic party leaders. Nik Aziz had named the three leaders as PAS deputy president Nasharuddin Mat Isa, secretary-general Datuk Mustafa Ali and Selangor PAS commissioner Datuk Dr Hassan Ali, and said he was saddened that they did not heed the decision of the PAS general assembly in Ipoh last year which had rejected cooperation with Umno. Muhyiddin said PAS seemed to be united but it was actually not because of the two sides for and against the proposal for a unity government by PAS and Umno. Muhyiddin said Umno, as party president Datuk Seri Najib Tun Razak had said in his policy speech at the party's general assembly earlier this month, was concerned over the disunity of Muslims in the country but many in PAS did not heed Umno's efforts for a unity government. The deputy prime minister dismissed the statement by Opposition Leader Datuk Seri Anwar Ibrahim that the 2010 Budget was not comprehensive, saying the budget had taken into account all groups

• Foreign Relations • Economic Front • ASEAN Leaders Says Free Trade Area Is On Track

The 10 South East Asian countries have reiterated that the realisation of the Asean Free Trade Area (AFTA) on Jan 1, 2010 is well on track, despite scepticism over some members' commitment in cutting tariff for major agricultural products. In a chairman's statement released at the 15th Asean Summit here on Saturday, the leaders said that by Jan 1, all tariffs for products in the CEPT Inclusion List of the six original signatories to the CEPT Agreement would be eliminated for intra-ASEAN trade.These account for 87.2 per cent of total intra-Asean imports while the remaining Asean members would also not be far behind as 98.86 per cent of their products have tariffs within zero to five per cent.


" The effective implementation of this major milestone in AFTA brings Asean closer to the Asean Economic Community where free flow of goods is one of its major objectives," the statement said.Prime Minister Datuk Seri Najib Tun Razak is leading the Malaysian delegation to the Summit. Thailand, the world's largest rice exporter, had threathened that it would not sign the Afta liberalisation for the rice trade next year if the Philippines does not import at least 360,000 tonnes of rice, tariff-free, annually from Thailand. Manila, which classifies rice as a "highly sensitive good", has committed to reduce its import duty from 40 per cent to 35 per cent by 2015, and was only willing to import 50,000 tonnes at zero-free tariff. Malaysia and Indonesia will reduce tariff to 20 per cent and 25 per cent respectively.The leaders also said that they are looking forward to the implementation of the Asean Trade in Goods Agreement and urged member states to resolve the differences at the earliest opportunity. The issue of Myanmar was also raised in the statement, but unlike in previous meetings where the country's democracy and human rights issues were always the main focus, only one paragraph was mentioned. The leaders underscored the importance of achieving national reconciliation and that the general elections to be next year must be conducted in a fair, free, inclusive and transparent manner in order to be credible to the international community. In another statement on Asean connectivity, the leaders said as the region was located at the crossroads of an economically vibrant and growing region, it has the potential to physically anchor itself as the transportation, information and communication technology, and tourism hub of this region.They said it was vital to complete road, rail, air, and sea linkages within Asean, adding that the development of infrastructure and multi-modal transport projects such as the Asean Highway Network and the Singapore-Kunming Rail Link should be expedited.

• Malaysian PM unveils budget with vow to cut deficit Malaysia’s prime minister unveiled his maiden budget yesterday, promising to slash the 2010 deficit from its highest level in more than 20 years, although he provided few clues as to how the cuts would be realised. Najib Razak, who is also finance minister, told parliament the budget deficit would fall to 5.6 percent of gross domestic product in 2010 from a forecast 7.4 percent this year in a move that is seen boosting domestic bonds as issuance slows. The main spending cuts came from reduced “operating expenditure”, lower food and fuel subsidies, a sensitive political issue for an unpopular government, and less money for development spending. Najib became premier in April to try to rescue the fortunes of the National Front government that in 2008 stumbled to its worst ever losses in over 50 years of rule in national and state elections and alongside promises to privatise state companies, his budget also showed political pressures. It allocated 11 percent more money for state workers’ salaries in 2010, nearly one million people accounting for almost 10 percent of voters and a mainstay of government support. “The most controversial issue is likely to be the government’s method of achieving the target without significant cuts in government headcount or salaries,” said David Kiu, an analyst with Eurasia Group, a political risk consultancy.


Economists warned that while the targets appeared ambitious, Malaysia’s recent history of budget overshoots since 2007, during the global economic boom in which the country benefitted from high oil and commodities prices, meant delivery on the promised cuts would be watched closely. “It is good that we see now the government seems serious to address the budget deficit issue,” said Azrul Anwar Ahmad Tajudin, senior economist at Bank Islam. “But the problem is whether we can achieve it or not. It’s too huge a reduction.” The budget plans drew a mixed reaction from credit ratings agencies, although they boosted both the ringgit currency and Malaysian bonds. The ringgit gained 0.6 percent to 3.38 per dollar while the yield on the 3-yr debt fell 1 basis point (bps) to 2.90 percent and the 5-yr yield dropped 3 bps to 3.83 percent. While Moody’s Investors Service said it had a “strong degree of confidence” in the government’s ability to deliver on its budget promises, rival Fitch said that the planned deficit would merely “stem the deterioration” seen in recent years. While Malaysia’s banks have remained strong during the economic crisis that brought many of the world’s giants to their knees, its export dependent economy has been hit hard. The government forecasts that exports in Asia’s third most trade dependent economy will fall 20 percent this year and grow by just 5.3 percent in 2010. That means the economy will grow by just 2-3 percent in 2010 after an expected contraction of 3 percent this year, a far cry from the 6 percent growth that Najib wants to achieve. The government has tried to boost domestic demand with extra spending and loan guarantees worth 67 billion ringgit spread over 2009 and 2010. Najib said recently that additional government spending was running at a billion ringgit a month.

• Social Front • Beyoncé postpones Malaysia show targeted by Islamic party

US singer Beyoncé Knowles has postponed her concert in Malaysia planned for this weekend, organizers said, denying that the move was linked to threats of protests by Muslim groups. The R&B star was scheduled to perform on Sunday at a stadium on the outskirts of Kuala Lumpur, two years after she cancelled her debut concert here amid fears of protests by conservative Muslim groups."The postponement is solely the decision of the artiste and has nothing to do with other external reasons," the event organizer Marctensia said in a statement.It said a new date for the concert will be announced "shortly" and more details will be released this week. The conservative Pan-Malaysian Islamic party (PAS), which has called for a ban on Beyoncé’s performance, said the event should be cancelled outright rather than merely be postponed."We are not against entertainment, but it's the way she performs — her gyrating moves on stage and her sexy outfits. It will erode the moral values of our young people," PAS youth chief Nasruddin Hassan Tantawi told AFP. The concert was part of Beyoncé’s "I am..." world tour, which has seen her perform in North America and Europe. Marctensia had indicated the singer would tone down her dress for the Malaysian performance, saying earlier that "all parties have come to an amicable understanding on the matter".


Performances by foreign bands frequently come under fire in Malaysia — a multicultural country with a Muslim Malay majority and ethnic Chinese and Indian minorities — with PAS typically leading the charge. US hip-hop band the Black Eyed Peas played in front of a multiracial audience last month after a ban on Muslims was lifted, although front-woman Fergie was forced to cover up.PAS called for Danish band Michael Learns to Rock to be banned from performing in September, saying it was an insult to Muslims during the fasting month of Ramadan. It also held protests against Canadian rocker Avril Lavigne's concert last year after failing to have it banned, while a performance by Gwen Stefani went ahead despite allegations it would weaken youth "morally and mentally".

• Recovery of economy expected next year, says Deputy Finance Minister The country’s economy is expected to recover next year by recording a positive growth that will create employment opportunities, said Deputy Finance Minister Datuk Dr Awang Adek Hussin. He said the confidence and projection hinged on the growth of the world economy as it was heading towards recovery.“In the first and second quarters, the country’s economy had registered negative growth like the world’s economy. “However, the contraction of the country’s economy at the end of the second quarter was smaller at 3.9% against between 6% and 7% in the previous quarter,” he told reporters after opening the Islamic College of Science and Technology’s second convocation here on Sunday.Awang Adek said for Malaysia, the retrenchment experienced during the economic slowdown was a temporary experience. “As the economy picks up, the investment will increase, definitely more jobs will be created. Retrenched workers will be rehired. “The export earnings had declined by 20% but with factories resuming operations, they will re-employ the retrenched workers,” he said.Awang Adek said most of the retrenched workers attended skill courses conducted by the Human Resources Ministry during the period of their unemployment. A total of 568 students received diplomas in medical assistance, nursing, diagnostic radiography, psychology and syariah studies at the convocation.

• Malaysia hails Kuwait''s role in solving Muslim food shortage A Malaysian official on Sunday extolled Kuwait's role in the alleviation of food shortage in the Muslim world by creating a financial fund for the purpose. The fund was announced by Kuwait during the 4th World Islamic Economic Forum (WIFE) held in Kuwait in 2008. Speaking to KUNA, WIFE Secretary-General Ahmad Fawzi said His Highness the Amir of Kuwait Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah had put an unforgettable mark for overcoming economic crises, including the recent food shortage, by donating USD 100 million for the fund. This generous initiative reflected Kuwait's spirit of solidarity and cooperation, especially in humanitarian and social fields, he said, noting that Kuwait was the only Arab country to play host to the forum.The joint international program for guiding young leaders, which was launched during the Kuwait-hosted forum, is now bearing fruit, Fawzi said, pointing to the funding of small and medium-sized projects in the Muslim world.


Kazakhstan and Oman are going to play host to the seventh and eighth forum in 2011 and 2012 respectively, he noted. The World Islamic Economic Forum is a global conference that acts as an international business platform where the business sectors of the Muslim world meet for business opportunities and together with the government leaders, act as a hub where policy proposals on economic development can be formulated. (end)

• Sodomy Case: Court Rejects Anwar's Objection(pol,social) Datuk Seri Anwar Ibrahim on Friday failed to prevent the Court of Appeal from hearing the prosecution's appeal against the High Court's order for the prosecution to supply documents to him.This follows the Court of Appeal's dismissal of Anwar's preliminary objection to strike out the prosecution's appeal. Justice Datuk Hasan Lah, who led the panel comprising Justices Datuk Wira Abu Samah Nordin and Datuk Sulaiman Daud, unanimously dismissed Anwar's objection after ruling that the High Court's order in relating to document application, was final and therefore, appealable. The court, however, rejected Anwar's application through his counsel Karpal Singh, for a stay of the appeal proceedings, pending his appeal against today's decision (preliminary objection) at the Federal Court.Karpal is the new counsel in Anwar's defence team in his second sodomy case, replacing prominent lawyer Sulaiman Abdullah, who had excused himself on July 15, due to health reasons.Today, the court is scheduled to hear the prosecution appeal and Anwar's cross-appeal against the same High Court which rejected his application to get a sample of the specimen taken from the complainant, Mohd Saiful Bukhari Azlan. Hasan then proceeded to hear the prosecution appeal. After the decision, Karpal informed the media that he would file an appeal against the court's decision at the Federal Court on Monday.On July 16, High Court judge Datuk Mohamad Zabidin Mohd Diah granted the opposition leader's application to compel the prosecution to supply him with the recorded witness statements of Mohd Saiful, Dr Osman Abdul Hamid from Pusrawi, condominium owner Hassanuddin Abdul Hamid, the statements of three other witnesses and other documents. However, Anwar failed to get Mohamad Saiful's specimen sample after the High Court rejected his application. The court, on July 24, granted the prosecution's stay of execution of the order, pending the disposal of its appeal to the Court of Appeal.Anwar, 62, is charged with sodomising Mohd Saiful, 24, his former aide, at a condominium in Bukit Damansara, Kuala Lumpur, on June 26, last year.Karpal, in his preliminary objection's submission, said that the court had no jurisdiction to hear both the appeals (the prosecution's appeal and Anwar's cross-appeal) as it was not final and therefore, it was not appealable. Karpal said, after the amendment of Section 51 of Criminal Procedure Code (CPC) in July 31, 1998, the ruling made by the court in any application was not final but the final ruling would came after the final disposal of the trial. Solicitor-General II Datuk Mohamed Yusof Zainal Abiden, who led the prosecution team, submitted that the High Court order was final in the context of documents application.


Mohamed Yusof, in the prosecution's appeal, submitted that the High Court judge was wrong in his decision when he said Anwar had the right to know everything, prior to his sodomy trial. He said Section 51 of the CPC did not allow Anwar access to the evidence in possession of the prosecution until the trial."Section 51 refers to the documents which the applicant (Anwar) already knows of, not for the purpose of a fishing trip," he said.The hearing continues on Oct 30. Philippine

• Political Front • Foreign Relations • US role in talks double-edged

The declaring bitter truth is that Moro Islamic Liberation Front (MILF) leaders want to establish an independent state made up of the majority of the Filipino Muslims (who see the Philippine Republic as their country) and the minority of militant Muslims here who, like the MILF leaders, despise our Republic. A less painful resolution of the conflict between the government and the various MILF bands and the MILF leaders (who seem incapable of enforcing discipline among their commanders and followers) is the formation of an autonomous Bangsamoro state, or two or several Bangsamoro states, within a new federal system of the Philippine Republic. These Bangsamoro states will have allegiance to the Philippine Republic as the mother juridical entity and to the Constitution of the Philippines. They and their Muslim populations will have all the freedoms, rights and responsibilities to achieve their highest political, civic, economic and spiritual potential—short of declaring themselves independent of the Philippine Republic. Every non-Muslim Filipino that we have spoken to, even those in the military who have engaged in battles with MILF armies and have lost comrades in arms in these battles, agree to see the Moros happily and prosperously given their autonomous states within a Philippine federal republic. And many of the Muslim Filipinos, some of whom may not actually want to become “citizens” of the future Bangsamoro state or states, also wish to see that arrangement become a reality. The GRP and MILF panels in July signed an agreement to resume peace negotiations. They also agreed to have the talks, the Mindanao peace process, and the actual peace situation, monitored by an International Contact Group (ICG) to be made up of diplomatic representatives of Muslim countries assigned by the Organization of the Islamic Conference. The ICG is also to have non-Muslim countries that have been actively involved in Philippine government efforts to promote the economic and social development of Mindanao’s Muslim provinces. Foremost of these are the United States, the United Kingdom and Japan. All of a sudden, news broke on Monday that the MILF had called on America to be involved in the peace talks. That MILF’s Chairman Ebrahim Murad, the Vice Chairman Ghazali Jaafar, chief of the panel dealing with the Philippine government’s negotiators Mohagher Iqbal, and five others had met secretly with the US Embassy’s Charge d’Affaires Leslie Bassett in the Moro rebels’ Camp Darapanan in Sultan Kudarat.


The US Embassy spokesman, Rebecca Thompson, texted The Manila Times on Monday with the message that Washington continues to support a negotiated settlement between the Philippines and the MILF. But there is reason to wonder what the Americans are up to. One suspects that, although the latest news is that the Philippine government, Malacañang in particular, is supposed to “welcome the American participation in the Mindanao peace process,” the government was not privy to the preparations of the MILF-US Embassy meeting and is not really privy to the reason for the meeting. One can glean this from the words of Foreign Affairs Department Undersecretary Rafael Seguis, who is the government’s chief negotiator vis-à-vis the MILF (and Commander Mohagher Iqbal’s counterpart). He claimed to have been told of the meeting before it was held. We suspect he was told indeed but not consulted about it. In other words, the US diplomats had decided to give the MILF rebel group the status of equals of the Philippine Republic by having a meeting with the MILF leaders without asking the host government’s permission. The US Embassy spokesman told Agence France-Presse that Charge d’Affaires Basset “met with various leaders and officials in Cotabato as part of a familiarization visit.” Of course, the MILF chairman, vice chairman and cadres of the separatist rebel group are “leaders.” Even the Philippine military forces in charge of Cotabato did not know who the American diplomats were meeting. Undersceretary Seguis is still asking questions. What exactly do the MILF leaders want America’s role to be? Do they want the Americans to support their (the MILF’s) Malaysian friends in acting as peace broker? With considerable opinion in Philippine circles now seeing Malaysia’s role as questionable, does the MILF feel adding America’s weight behind that of the Malaysians will buttress their favored position in the peace talks. One cannot help but remember that the United States, in a way, betrayed the Philippines in Sabah, which belongs to the Philippines and which was leased from the Sultan of Sulu by the British and was transferred to Malaysia after a US and British-supported referendum that the Philippines bitterly objected to. Mindanao is not just an important and large piece of real estate. To us Filipinos it is an integral part of our homeland. But it is also an internationally strategic location in our region—from which the safety of the seas can be assured for international shipping and trade and for the geopolitical strength of the big powers, including our old friend, former colonial master and current source of aid, loans aid and jobs for overseas Filipino workers. Here’s a legitimate fear: If American interests will be advanced by having our Mindanao promised land fragmented through the creation of new Muslim states more dependably pro-American than the Philippine Republic—with its fractious and noisy democrats in the media, the legislature and youth organizations and its corrupt would-be dictators—Washington is most likely not going to think twice about balkanizing southern Philippines.If our government officials had been more worthy of respect, less known to be venal and more seen to be patriotic men and women who care for their own people’s good, maybe powerful friends like the Americans will go out of their way to preserve the Philippine Republic. But we have for the past many years exhibited all the weaknesses and the vices


of a failed state. And foreign countries, like cruel animals of the jungle, will not bother to save the dying. Internationalizing our domestic problems, like peace and development in Mindanao, can be a goods thing. If the officials of our republic were credible and awesome towers of moral strength and brilliance. With the inferior moral and intellectual qualities of our leaders, having the Mindanao peace process controlled by foreign friends who don’t have good reasons to respect our leaders, we should brace ourselves for the balkanization of Mindanao.

• Economic Front • World Bank sees economy picking up in Philippines

The World Bank said it no longer expected the Philippines to sink into recession in 2009, noting that the country’s macroeconomic fundamentals proved to be better than earlier anticipated.Bert Hofman, the bank’s country director for the Philippines, said in a speech before members of the business community yesterday that the multilateral lending institution was taking back its earlier pronouncements that the domestic economy would contract in 2009. Hofman said the World Bank saw the Philippines registering a minimal growth. “The Philippines performed much better than expected (in the first half). Many people in the Philippines (including officials from the central bank and other government economic managers) believed that the country would not fall into recession, and they were right,” Hofman said during the Philippine Business Conference 2009 held at the Manila Hotel. The event was organised by the Philippine Chamber of Commerce and Industry. Originally, the World Bank said the Philippines would likely post a 0.5% contraction in 2009, due to the ill-effects of the global economic turmoil. The bank said the worldwide crisis would likely lead to lower remittances due to layoffs in recession-afflicted countries, led by industrialised nations. The bank was earlier projecting a 4% to 5% contraction in remittances.However, Hofman said that major positive developments happened since the World Bank released its original forecast earlier in 2009. He cited remittances, which actually have still been growing by at least 3% in year-on-year terms.Economic managers said remittances continued to grow because many Filipinos abroad were working in sectors that were not badly hit by the recession in the developed world. These sectors include education and healthcare. They also said Filipinos who were laid off were outnumbered by the ones newly deployed to work in alternative labour markets.Remittances sent by the estimated 9mn overseas Filipino workers largely fuel the Philippines’ growth because these support household consumption.Besides the continued growth in remittances, Hofman said Filipino consumers have become more confident to spend in the second half of the year than in the first six months. Earlier, many Filipino households, despite receiving higher remittances, would not spend too much because of fear that their family members offshore may lose their jobs. However, in the recent months, Hofman said, more households were spending more amid the consensus that the worst of the global economic turmoil was over. Hofman also said the slight pick-up in exports would help the Philippines avoid a recession in 2009, although this year’s growth would be much slower than that in 2008.

• Social Front


• Philippines calls for help to address disease outbreak in storms' aftermath

The WHO on Thursday said the Philippines is requesting "international help to fight a deadly outbreak of an infectious disease following two devastating tropical storms," Agence France-Presse reports. Parts of Manila, which are still flooded almost four weeks after Tropical Storm Ketsana hit, are experiencing an outbreak of the bacterial infection, leptospirosis (10/22). The infection, which is "spread by water contaminated with the urine of rats, dogs and other animals," has added to "the problems faced by the Philippines after back-to-back storms since late last month killed more than 900 people and devastated northern regions," according to the Associated Press/GMANews.TV (10/22). So far, 1,963 cases of leptospirosis have been reported and 148 people have died, said Francisco Duque, the Philippines health secretary, Sky News reports (10/22). "A three-member team was flying into Manila 'in the next day or so' after the government sought help from the 140-nation Global Outbreak Alert and Response Network to fight the outbreak, Adam Craig, an official of the WHO Western Pacific regional office in Manila," said, AFP reports (10/22). To prevent the infection from further spreading, government health workers have given antibiotics to 1.3 million people, the AP/GMANews.TV writes. Leptospirosis is spread "through exposed cuts and bruises. The disease can cause high fever, headache, sore muscles and vomiting. In extreme cases, it can lead to kidney failure and internal bleeding that can cause death." "Peter Cordingley, WHO spokesman for the Western Pacific region, said many communities remain flooded and the number of infections could continue to grow, though number of fresh cases reported in government hospitals has begun to drop as waters recede in some communities," the news service reports (10/22). According to Sky News, "The country is now bracing itself for more bad weather as forecasters predict Typhoon Lupit is set to bring winds gusting at more than 120 miles. Soldiers and paramedics have been deployed with rescue boats, trucks and emergency supplies and over 100 government buildings are on standby as possible evacuation camps" (10/22).ABS-CBN News examines the government's response to the outbreak. "Health authorities earlier advised the public not to wade in flood waters and to use protective clothing in order to prevent flood-borne diseases like leptospirosis, typhoid fever, cholera, and hepatitis" (10/22). In related news, Reuters AlertNet examines relief efforts in response to natural disasters. "When a disaster strikes, international relief agencies receive the bulk of media attention and donor funding but experts say it is actually the people living in the damaged areas who save the most lives and help survivors long after foreign aid workers leave," according to the news service. The article includes interviews with people who provide aid during disasters. It also discusses findings from a Britain Overseas Development Institute report (Dmitracova, 10/23).

• Lupit weakens, keeps Philippines on edge Typhoon Lupit weakened into a tropical storm yesterday after zigzagging around the rain-soaked northern Philippines and living up to its name _ meaning cruel in Filipino -- by keeping weary residents on edge and forecasters guessing. The third successive storm in a month has been hovering for several days near the coast and inland mountains,


sending thousands to seek shelter following two back-to-back typhoons that killed nearly 1,000 people, most of them buried in dozens of mudslides. Lupit's err atic direction baffled forecasters and frustrated the local media who kept predicting its landfall every day. The weather bureau said in a nationally televised briefing Thursday evening that Lupit would ram into northeastern Cagayan province early yesterday. But as of late Friday, the tropical storm was almost stationary northeast off Cagayan, packing winds of up to 105 km per hour and gusts of up to 130 kph. Prisco Nilo, the head of the weather bureau, said Lupit was expected to remain almost stationary for the next 12 hours, causing rains, strong winds and possible storm surges along the Philippines' northern tip. Authorities said it was slowly drifting northward and may even spare the country. It may instead hit Taiwan, or it may not hit Taiwan and go straight to Japan, but its too early to say," chief forecaster Nathaniel Cruz said. After crawling for the last two days, Lupit barreled on course to hit shore, then stalled again Friday due to two high-pressure areas that sandwiched it from the South China Sea in the west and the Pacific Ocean in the east, each pulling the storm in its direction, Cruz added. Typhoons usually slice through the northern Philippines from the Pacific and exit throug h the South China Sea. The archipelago nation, known as the welcome mat for typhoons, gets about 20 a year during the rainy season from June to December.Despite losing strength, Lupit was still a dangerous system that could drench the north of the main island of Luzon on the heels of the worst flooding in the Philippines in 40 years. Tropical Storm Ketsana on Sept. 26 inundated much of the capital, Manila, and nearby areas, including the country's largest Lake Laguna, killing 464 people. It was followed by Typhoon Parma, which unleashed mudslides along the Cordillera mountain range Oct. 3, leaving 465 dead. For the past week, army troops and disaster-reli ef officials have ferried tons of canned food and clothes and moved rubber boats and helicopters along the coast and the interior. At least 1,500 residents living along the Cagayan River and its tributaries were moved to high ground, said provincial Gov. Alvaro Antonio. Another 1,000 people left their homes in Appari township, including some 200 after a wave surge collapsed a 20-meter high sea wall in San Antonio village early this week.

• Disease threatens survivors of floods More than a million flood survivors are getting antibiotics to help them resist a deadly bacterial outbreak, one of several diseases menacing crowded evacuation centres, Philippine officials said yesterday. After tropical storms Ketsana and Parma, which together killed 818 people according to the latest official count, the immediate threat is leptospirosis, caused by exposure to water contaminated with rat urine. The government said the disease has claimed an additional 89 lives.The health department has declared an outbreak of the bacterial disease in the Marikina section of Manila, one of the areas hardest hit by Ketsana, which flooded 80% of the capital on September 26. Health Secretary Francisco Duque has ordered drugs given to 1.3mn people as added protection against the disease, which if untreated could lead to kidney failure. “Even our staff have been ordered to take antibiotics,” said Bing Ramos, a doctor at the state-run Amang Rodriguez Medical Centre in the Marikina district.


Two of the hospital’s 68 leptospirosis patients are in serious condition, including one with symptoms of renal failure, Ramos said. The hospital, which the government said suffered 380mn pesos ($8.2mn) in damage from the floods, has converted its lobby into an extra ward to house the leptospirosis cases.The health department said in a statement that it has vaccinated children for measles in areas affected by the Ketsana floods, and given tetanus toxoid vaccines for all injured victims of the storm.Tap water supplied to evacuation centres, which still house more than 206,000 people, are being tested and five sites have tested positive for the E. coli bacteria, it said.Water disinfectants are being supplied to these facilities, it added. The department said it is also supplying vitamins to children at these centres.Respiratory tract infections, fevers, skin diseases, infected wounds and diarrhoea are among the most common ailments at the evacuation centres, it added.

• Separatist groups seeks help in reaching peace deal Leaders of the Philippines’ largest Muslim separatist group said yesterday they had met US diplomats and called for Washington’s involvement to help broker a peace deal. The meeting between Moro Islamic Liberation Front (MILF) chief Murad Ebrahim and US charge d’affaires Leslie Bassett took place on Friday at Darapanan, the rebel group’s main training camp on Mindanao island, an MILF statement said. US embassy spokeswoman Rebecca Thompson said: “Ms Bassett met with various leaders and officials in Cotabato as part of a routine familiarisation visit.” Darapanan is located in the Cotabato region of Mindanao, but the spokeswoman would not specifically say if these meetings included MILF representatives.Lieutenant-General Raymundo Ferrer, commander of Philippine military forces in Mindanao, said he instructed an army division in the area to provide security to the American diplomats, who had requested a military escort ahead of a visit to the region. But he added: “We were not informed about the meeting.” Lieutenant-Colonel Jonathan Ponce, spokesman for the Philippine Army’s Sixth Infantry Division, said: “We provided security, but we all know that they (soldiers) could not enter the MILF camp and join them (US diplomats).” He added: “We learned afterwards from intelligence reports about the meeting (with the MILF). We learned that they discussed development projects and probably also the peace process.” The MILF said the meeting was also attended by its vice chairman Ghazali Jaafar, chief negotiator Mohagher Iqbal and five other senior cadres, while the US side included three Manila-based US diplomats besides Bassett. During Friday’s meeting, according to the MILF statement, Jaafar told the US delegation: “We believe that the US can greatly help toward the peaceful resolution of the conflict.” Washington is a key aid donor to impoverished Muslim areas of Mindanao, and US Special Forces based on the island provide training and intelligence to Philippine troops fighting Islamist militants. The MILF statement said its chief Murad stressed the movement’s commitment to reaching a peace deal with the government of President Gloria Arroyo “through a negotiated political settlement”. The Arroyo government and the 12,000-member MILF have been taking tentative steps towards resuming formal negotiations in recent months.


Peace talks were halted last year after the MILF attacked Christian communities across the southern Philippines, killing more than 300 people and displacing around 750,000. The fighting came after the Supreme Court threw out a government proposal to give the rebels control over their so-called “ancestral domain,” which covers more than 700 towns and villages. Philippine authorities and church officials yesterday launched fresh appeals for the safety of an elderly Irish priest they fear may be in dire need of medical attention, a week after his abduction. Thousands of flyers were being handed out on the troubled southern island of Mindanao seeking help for Father Michael Sinnott, 79, whose abduction by gunmen was also highlighted by the Vatican. “We appeal to your kind heart that the medicines will be delivered to Father Sinnott, who currently has a serious heart ailment,” read one flyer released by the provincial government of Zamboanga del Sur. No group has claimed responsibility for the October 11 abduction of the Roman Catholic missionary and his superiors have had no contact with his abductors, said Patrick O’Donoghue, country head of the Irishman’s religious order, the Missionary Society of Saint Columban. During a service at the Vatican yesterday, Pope Benedict XVI praised Sinnott for his missionary work, and that of an Italian priest shot dead in Brazil last month. “I want us to remember the missionaries, priests, members of religious orders and those who are not religious who dedicate their lives to spread the gospel in the world,” the pope said during his weekly Angelus service. “I am thinking, among others, of Ruggero Ruvoletto, killed recently in Brazil and Michael Sinnott... kidnapped several days ago in the Philippines.” The Philippine military said a pirate had transferred Sinnott by boat to the Lanao coast east of Pagadian city, and may have turned him over to a leader of the Moro Islamic Liberation Front (MILF), a Muslim separatist group. The MILF leadership has denied any of its commanders were involved and says it is helping to secure Sinnott’s release. Allan Molde, spokesman for a government taskforce handling the Irishman’s case, said about 10,000 flyers had been distributed around Pagadian and nearby and more would be sent to coastal areas in the region. “We all know that the kidnappers used boats, and we hope somebody in these areas may know where they are,” he told reporters by telephone.

• Environmental front Thailand

• Political Front . • Cambodia denies offering Thaksin home

A senior Cambodian official yesterday denied that Cambodian Prime Minister Hun Sen offered Thailand’s former prime minister Thaksin Shinawatra a home in Cambodia. Cambodian Information Minister Khieu Kanharith said Hun Sen had been misquoted by the media. “He didn’t say that,” Khieu Kanharith said. “Some people have said we would allow Thaksin to have a permanent home in Cambodia - it’s not true.” The comments attributed to Hun Sen had earlier drawn a frosty response from Thailand with Deputy


Prime Minister Suthep Thaugsuban warning yesterday that Thaksin risked being extradited back to Thailand if he took up the reported offer of a home in Cambodia.

• PM tries to ease Democrat rifts Prime Minister Abhisit Vejjajiva has been called on to repair a potential rift over charter amendments threatening to cause chaos in his ruling Democrat Party.Mr Abhisit yesterday spoke to party MPs at a meeting called after several publicly voiced disagreement with the party's move to support the six-point constitution rewrite proposed by the government, opposition and senate whips. Mr Abhisit refused comment to reporters after the closed meeting.A Democrat source said the prime minister spent about 25 minutes talking to fellow Democrat MPs. It was thought to be his longest speech to party MPs since he was appointed prime minister. Deputy Prime Minister Suthep Thaugsuban, the Democrats' secretary-general, said after the meeting the MPs had understood the prime minister very well and any disagreements had been settled. Mr Suthep said it was normal for some MPs to view the process differently.Democrat spokesman Buranat Samutharak confirmed at a news briefing after the meeting that the party would abide by the resolution of the whips. However, the whips would meet again tomorrow as the opposition Puea Thai Party had decided not to support the amendment bid and demanded the resurrection of the 1997 constitution instead.The Democrats called the meeting yesterday after Nakhon Nayok MP Charnchai Issarasenarak held a news conference in the afternoon to oppose the party's move to support the amendment.He said the party had decided to support charter review in response to the demands of its coalition partners. He blamed Mr Suthep for trying to please the coalition parties and threatened to seek the party's support to dismiss the deputy prime minister as secretary-general.The source said Banyat Bantadtan, a former Democrat leader and a member of the party's advisory committee, warned Mr Charnchai and Mr Watchara at the meeting that their move would have a negative impact on the party.

• Foreign Relations • Myanmar Won't Allow Thailand's Foe To Use Its Soil, Says

PM(social,polirical) Myanmar Prime Minister General Thein Sein has assured his Thai counterpart Abhisit Vejjajiva that his country would not allow anyone opposing Thailand to use its soil as a springboard to attack the kingdom, according to the Thai News Agency (TNA). Thein Sein, who is now attending the 15th Association of Southeast Asian Nations (ASEAN) summit being held in the Thai resorts of Hua Hin and Cha-am, reportedly told Abhisit on the sidelines of the summit Friday, that Myanmar upheld the principle of living in harmony and that it would not allow anyone opposing Thailand wishing to use his country as springboard in attacking this country. Expressing his confidence that Southeast Asian countries, including Thailand, could sail through obstacles and negative challenges, Thein Sein told Abhisit that both Myanmar and Thailand share a long border and both countries have to depend with each other and good neighbourliness is, therefore, significant. Thein Sein's remarks were made after Abhisit and Cambodian Prime Minister Hun Sen traded words after the Khmer leader reasserted Friday on arriving for the ASEAN summit that his government would reject any Thai request to extradite former Thai prime


minister Thaksin Shinawatra if the self-exiled ex-premier accepts an invitation for refuge in Cambodia. Hun Sen told journalists to read the extradition treaty thoroughly to understand why the former Thai premier, whom he described as his friend, can stay in Cambodia as a guest of the Cambodian government. Ousted in a bloodless coup in September 2006, Thaksin jumped bail and fled sentencing to a two-year jail term for malfeasance in the controversial Bangkok's Ratchadapisek land purchase case.The toppled Thai premier now spends most of his time in the United Arab Emirates after his status as a visitor was rejected by a number of countries including both the United Kingdom and Germany.Thanking Myanmar for its support given to Thailand as chairman of ASEAN, Abhisit told Thein Sein that his government supports Japan's financial assistance bestowed to Myanmar on various projects, including developing hospitals and schools. Abhisit said his government, as a close neighbour to Myanmar and host of ASEAN, had told every country to strengthen ties with Myanmar and had requested the Myanmar government leader to "unofficially report" on progress on development projects in his country during the ASEAN summit on Saturday. Wishing Myanmar to successfully hold its general election next year, Abhisit also told Thein Sein that he hopes to officially visit Myanmar when he has the opportunity and to also meet Myanmar's opposition leader Aung San Suu Kyi to boost democracy for the world community.The leaders of ASEAN's 10 member countries--Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam-- are holding their three-day summit in the Thai resorts with their six dialogue partners--China, South Korea, Japan, India, Australia and New Zealand.

• Economic Front • Why the Thai king's health can panic markets

It is taboo for Thais to publicly voice their fears about what might happen when the reign of their ailing 81-year-old King Bhumibol Adulyadej ends. But the reaction of Thai markets this week spoke louder than words. Thailand's bourse tumbled on Wednesday and Thursday and the baht slid on concerns about the king's health. There was a recovery on Friday, but the fact that even vague rumours could spark a sharp sell-off showed just how worried Thais are about a change of monarch, and how badly Thailand's ma rkets will be hit. Don't believe the market rumours. Only believe the palace's statements," said a Royal Household Bureau spokesman. It is clear, though, that even if this health scare passes, investors are deeply concerned about what might lie ahead. The dangers are never discussed in public because Thailand has strict lese majeste laws that forbid talk of the monarchy's role and possible problems on the horizon. Frank analysis of the political outlook is a rarity, and so many foreign investors have only a hazy idea of the risks they face. But analysts say privately that there could be a prolonged period of turmoil and even significant civil unrest, and this is why markets are so vulnerable to rumours about his health. What makes the succession issue so dangerous now is that Thailand has been locked for years in a political and social conflict between supporters and opponents of populist former prime minister Thaksin Shinawatra, who was ousted in a military coup three years ago and now lives in self-imposed exile. Thaksin swept to power in 2001, promising a


raft of policies aimed at the poor, and won a second term with an even stronger majority in 2005. Thaksin's huge support from the rural poor meant he had a big enoughmajority to govern without the usual backroom deals and concessions to the bureaucracy and military. Thaksin's growing power and impregnable electoral base, plus accusations of corruption, alarmed the elite groups who have traditionally run Thailand, and the military launched a coup. Thailand is now divided into two bitterly opposed camps: the pro-Thaksin "red shirts" who are furious that successive governments they voted for were toppled by the military or judiciary; and the "yellow shirts" - royalists, the military and urban Thais, who back Prime Minister Abhisit Vejjajiva. The conflict has sparked several bouts of unrest that have damaged Thailand's economy and investment attractiveness. Last year, anti-Thaksin protesters blockaded Bangkok's two main airports, and in April "red shirt" protesters stormed an Asian summit in Pattaya, forcing its cancellation. A country once regarded as a haven of regional stability is increasingly viewed as a basket case. In 2002, the World Bank's World Governance Indicators rated Thai political stability at 59.1out of 100. By 2008, that rating had dived to 12.9. In theory, Thailand's monarchy is above the country's political divisions. Bhumibol is a constitutional monarch, with no formal political powers, and he is widely respected by Thais who regard him as a unifying force in a fractured country. Yet during his six decades on the throne, Bhumibol expanded his influence on politics, and explicitly intervened three times during periods of conflict between the military and elected officials. Furthermore, the palace is seen by many Thais as having taken sides against Thaksin over the past three years. The king's chief adviser, Privy Councillor Prem Tinsulanonda, was very close to many of the coup plotters, and is regarded as a key ally of the "yellow shirts". Bhumibol's wife, Queen Sirikit, also signalled support for the anti-Thaksin movement last year by attending the funeral of a female "yellow shirt" protester. So the palace has been drawn into the conflict, and in turn the conflict has become partly about the appropriate role of the monarchy. Thaksin's supporters want the ballot box to prevail, so governments they elect can rule without meddling by the elites. Many monarchists argue that the rural population are not well enough educated for democracy to work, so the military, bureaucracy and elites should have wide control over policy. Because Bhumibol is so widely respected in Thailand, most Thais are comfortable with the influence he wields, and all sides in the conflict stress their loyalty to the crown. But Bhumibol's son and presumed heir, Crown Prince Maha Vajiralongkorn, is regarded far less favourably by most Thais. The result will be a huge shift in the balance of power - the "red shirts" are likely to be bolder in their rejection of the monarchy's political influence, which could in turn provoke a crackdown by elites worried the monarchy is losing influence. The conflict that has already done so much damage would escalate. And the long-term stability that investors want to see would be further away than ever.

• Promoting Peace Through Organic Farming in Thailand The gourds grow heavy on the vine, and the catfish splash merrily in their ponds. At the Learning Center of Sufficiency Economy in Southern Thailand's Yala province, the vision of Thai agriculture as set out by the country's King Bhumibol Adulyadej has


reached its fecund best. Like many other parts of Thailand, villagers come to this agricultural laboratory to learn from the monarch's Sufficiency Economy philosophy, which bundles together concepts of sustainable development, rural self-reliance and equitable income distribution. But there's a difference to this vast botanical project: unlike others in the rest of Thailand, this one is located in the country's Muslim-majority south, where suspicion of the Buddhist-dominated state has spawned a bloody insurgency that has claimed more than 3,700 lives, both Muslim and Buddhist, since 2004.

• ASEAN-Korean trade rises 23.4 per cent ahead of pact Trade between the Association of South-East Asian Nations (ASEAN) and South Korea increased 23.4 per cent in 2008, even before a free trade agreement goes into effect next year, ASEAN leaders said Saturday. An ASEAN summit in Cha-am, 130 kilometres south-west of Bangkok, reconfirmed that an ASEAN-South Korean free trade agreement would be implemented January 1. A final statement issued at the end of the ASEAN summit Saturday noted the already impressive growth in trade between South-East Asia and South Korea. 'In 2008, ASEAN-Korea trade grew by 23.4 per cent compared with 9.5 per cent in 2007,' the statement said. 'ASEAN is now the third-largest trading partner of Korea and Korea is ASEAN's fifth-largest trading partner.' Although the summit among the 10 ASEAN leaders has wound up, bilateral summits between the group and its major regional trading partners - Australia, China, India, Japan, New Zealand and South Korea - are to be held at the Cha-am beach resort until Sunday. ASEAN has signed partial free trade agreements with all six partners. An ASEAN Free Trade Area, which is to slash import tariffs on regional trade to zero to 5 per cent in ASEAN's six most developed economies, is to go into full effect on January 1. 'We are pleased to note that the realization of the ASEAN-Free Trade Area on January 1, 2010, is well on track,' the ASEAN statement said. The free trade area is to cover 99.65 per cent of all tariff lines in the six original ASEAN countries - Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand. Newer members Cambodia, Laos, Myanmar and Vietnam are to be included in 2015

• Asian summit to tackle economic crisis Asian leaders meet in Thailand amid tight security this weekend to discuss ways to deepen economic ties and sustain the region’s rebound from the recent global downturn, officials said.A long-awaited but controversial rights body is also set for its official launch, while leaders are expected to grapple with climate change and how to improve the way they deal with natural disasters. Officials from the Association of Southeast Asian Nations (ASEAN) summit and key regional partners began to gather on Thursday at the elite beach resort of Hua Hin, with the leaders due to arrive on Friday. Dozens of armoured vehicles were stationed at key points in the town Thursday, backing up around 18,000 security personnel deployed under harsh laws invoked by the government. The meeting was originally due to be held in Pattaya in April but was called off after anti-government protesters stormed the venue and forced foreign leaders to flee. This weekend’s summit involving Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam will be followed by talks with China, Japan, South Korea, India, Australia and New Zealand.Asia’s quick rebound from the global recession compared with the United States and other Western economies


is expected to set the mood for talks on further freeing up the flow of trade, investment and people across the region. “Asia is poised to take on a bigger role on the global stage after the dust from the economic crisis has settled,” a senior Southeast Asian trade official told AFP. The official said that integration was the “key to unlocking Asia’s full potential”. Central to the integration efforts is ASEAN’s goal to establish an EU-style community by 2015 and expand trade and economic links to include regional giants such as China and India. A draft of a statement to be signed by leaders this weekend reaffirms their “commitment to support the establishment of an ASEAN community comprising three pillars, namely political and security cooperation, economic cooperation and socio-cultural cooperation.” The United Nations on Thursday urged leaders to make the new ASEAN Intergovernmental Commission on Human Rights ‘credible’. The body has been criticised for focusing on the promotion of rights rather than protection and for having no power to punish member nations. ASEAN and its partner nations are also expected to issue statements on food security cooperation and disaster management

• Thai cabinet approves investment projects worth $7 bln Thailand's cabinet approved on Tuesday more projects worth about 230 billion baht ($6.9 billion) under a three-year government investment plan to revive the economy, Finance Minister Korn Chatikavanij said. The government earlier approved 1.06 trillion baht ($32 billion) of projects as part of its 1.43 trillion baht, three-year 'Investment Strength' stimulus programme, of which 800 billion baht will be borrowed from the domestic debt market. Korn told reporters the cabinet also allowed the Finance Ministry to take 50 billion baht from the programme budget previously allocated for the ministry's treasury reserves. 'With the economic recovery, tax revenue has improved. So there is less need for boosting treasury reserves,' he said after a weekly cabinet meeting. Thailand's $260 billion economy emerged from its first recession in 11 years in the second quarter, growing 2.3 percent from the first quarter. Last month, Korn told Reuters he expected the economy to growth about 2 percent in the third quarter and pick up the pace in the final three months of the year as stimulus measures kicked in..

• SC Bank: GDP to rebound in 2010 Thailand's economy will likely expand by 2.8 per cent next year and 4.5 per cent in 2011, according to Standard Chartered Bank senior economist Usara Wilaipich.The bank's projection for the country's gross domestic product this year remained unchanged at negative 3.5 per cent, Ms Usara said on Tuesday. The global economy was gradually improving but the Thai economy would continue to be dependent on state investment, she said."The risk factors of the Thai economy are political instability and investment and export difficulties.''Liquidity in the financial system will likely decrease due to the state sector's capital mobilisation and the private sector's increasing loan demands," the economist said. She said the Administrative Court order suspending ne projects at Rayong's Map Ta Phut industrial estate would lower investor confidence and halt investment. The government should resolve the Map Ta Phut case quickly.

• At Social Front • Despite Outreach, Violence Is Up In Southern Thailand


The patch of garden in troubled Yala is the brainchild of the Fourth Army Region Commander Lieut. General Pichet Wisaijorn, who is the military officer in charge of Thailand's far south. The area was once a Malay Muslim sultanate, but Thailand, then known as Siam, annexed the region in the early 20th century. Since then some Muslim residents, who make up roughly 80% of the local population, have complained of feeling like second-class citizens in what elsewhere is a predominantly Buddhist land. Sporadic violence in the deep south bloomed into a full-scale insurgency in 2004. Overtly Buddhist targets like monks and teachers have been murdered by shadowy perpetrators, while Muslims thought to be collaborators with the government have been killed as well. In recent months, the Thai government has unleashed a troop surge to try to quell the violence, which has, in turn, spawned criticism of the military's heavy-handed tactics like torture and arbitrary detentions of Muslims, according to human-rights watchdog Amnesty International. But even as some 60,000 soldiers, police, paramilitaries and other government-backed militias patrol Thailand's three insurgency-wracked southern provinces, Lieut. General Pichet is focusing much of his personal effort on winning hearts and minds through the King's Sufficiency Economy project. The south is one of Thailand's poorest regions, and the Thai military says that thousands of villagers have willingly come to the center, mostly for one-day trainings on the merits of organic agriculture using a bio-fertilizer promoted by King Bhumibol. "Even within the military, some people believe I am wasting my time because they do not understand Sufficiency Economy," says Pichet, after showing off the benefits of composting to a group of local businesspeople. "But I believe that once villagers here understand that we are trying to help them help themselves, more and more will come over to our side." But will lessons in crop yields truly ease tensions in Thailand's south? In the year since the gardening project was unveiled, the number of violent incidents in Thailand's deep south has only increased, despite army protests that this is a last-ditch, desperate campaign of terrorism from the insurgents. And while any overtly Buddhist undertones of the King's Sufficiency Economy theory have been stripped away in the south, there's no question that the royal economic philosophy draws succor from the Buddhist concept of the Middle Path. (Indeed, one fish-breeding program at the center was recently suspended because a Buddhist monk had opined that killing catfish for their sperm was unspiritual.) Says a Muslim academic who declined to be named for fear of offending the government: "We need justice for abuses committed by the state against our people, not Buddhist teachings on agriculture." Unlike some of his more iron-fisted colleagues, Pichet has won grudging respect from some locals for attempting to promote sectarian harmony through military overtures. As he gave a rambling slide-show lecture on Sufficiency Economy to members of a local chamber of commerce (some of whom snoozed in the tropical heat), there was no doubting the commander's sincere belief that the project would promote the Thai nation's cause in the south. Meanwhile, elsewhere in the complex, young Buddhist army officers earnestly gave lessons on proper fertilizer use to groups of veiled Muslim women, some of whom were completely covered but for their eyes. (The area of Malaysia bordering Thailand's Yala province is among the most conservative in that Southeast Asian nation, and the local Kelantan state government draws inspiration from Islamic Shari'a law.) In


another area, under the shade of some trees, a group of young Muslim drug addicts underwent a Koranic-inspired rehabilitation program while Thai soldiers looked on. Pichet dismisses allegations that his men might be part of the problem in Thailand's south. When asked about the Amnesty International report released earlier this year documenting systematic military abuse of local civilians, the Fourth Army commander first says he has never heard of the report, then switches tactics and claims that the group's researchers didn't spend much time in the south collecting their information. Pichet acknowledges that the hearts and minds of suspicious Muslim villagers can't be won overnight. But the country still faces a tough battle in its bloody south, no matter how impressively the papaya and rubber trees grow. Singapore

• Political Front 43 • Foreign Relations • S'pore ready to resume talks with Indonesia on defence

agreement Singapore's Prime Minister Lee Hsien Loong was one of several leaders at Indonesian President Susilo Bambang Yudhoyono's inauguration in Jakarta on Tuesday. Mr Lee said Indonesia has seen stability, predictability and growth under President Yudhoyono and he hopes the country will continue along this path. The prime minister said: "I'm very happy to be here to congratulate him on his second term, (and to) witness his inauguration. "We look forward to cooperating with Indonesia bilaterally... and also within ASEAN because Indonesia is a key player in ASEAN, and in wider forums like APEC, which is about to take place in Singapore next month." Mr Lee added that Singapore is ready to resume talks on the stalled Defence Cooperation Agreement and Extradition Treaty between the two countries. However, Indonesia will have to determine when that would take place.

• Economic Front • MM Lee says China and India growth will result in new world order

Singapore Minister Mentor Lee Kuan Yew said that the growth of twin giants China and India will result in a new world order, even if in the absence of a global financial crisis. Speaking on Monday at a dialogue held at the National University of Singapore on the topic - "What will the next 50 years have in store for Singapore?" - Mr Lee said that the recent financial turmoil had possibly accelerated the pace of growth for the two countries. He pointed out that China was growing at between 8 and 11 per cent a year, while the United States was growing a mere 2 to 3 per cent. However, he stressed that it does not mean the US will take a back seat in the new world order. "I do not think the Americans are finished. I think they are still a dynamic economy. If we look at the past records, they are the most flexible, most entrepreneurial and willing to re-emerge in new forms," Mr Lee said. A special on the dialogue, called "Singapore - the next 50 years", will be aired on Channel NewsAsia at 8.30pm on Wednesday, October 21.

• Analysts say office rental slide a necessary correction Prime office rents may be on a downward trend, but analysts say there is nothing much to worry about as the decline is a necessary correction. An oversupply of office space and low demand has knocked down prime office rentals in the central business district (CBD). Rents have fallen as much as 40 per cent since the


beginning of 2008 but observers said that rents are not in a free fall. They said the slowdown in rental rates is a correction that was going to happen due to the unusually high prices resulting from the boom in 2007. "We could see office rentals return to a 2005 level. Office rentals have risen to such a high rate, so we must not take it that the 2007 rates are the norm," said Nicholas Mak, Independent Property Consultant. "For example, it was quite common before 2005 to find that Raffles Place rentals could be under S$6 (per square foot per month) in some places," he added. Experts said that prices should level out at between S$6 and S$10 per square foot per month in the CBD over the next year. This is down from an average of S$15 in 2007 and 2008. The oversupply of office space has also stalled the developments in the city. However, interest in affordable non-central locations for companies which do not need to be housed in the CBD, has resulted in new project interests outside of town. Thor Kerr, managing director, BCI Asian Construction Information, said: "If you talk about huge projects like the Marina Bay area, probably not as many, there is just an over supply right now. "But if you look at smaller projects, especially along the new MRT lines, that is going to be interesting because they have good infrastructure and have a competitive advantage because of pricing." Such projects include the new Fusionopolis Tower near Buona Vista, and mixed developments along South Beach Road. According to observers, this interest in non-prime properties is likely to keep rents down for prime office space until the global economy recovers and big tenants are once again interested in the CBD.

• S'pore today is a result of effort put into building country: MM Lee Singapore is where it is today because of the effort that was put into building the country, said Minister Mentor Lee Kuan Yew. Mr Lee made this point at a recently concluded dialogue with tertiary students at the National University of Singapore. He said without people with ruggedness and a do or die attitude, there will not be the Singapore that exists today. Mr Lee noted that unlike the older generation, most young Singaporeans do not know what it is like to be poor. But he said young Singaporeans can emotionally and intellectually understand that if one does not make the same effort, Singapore will regress. To illustrate the value of hard work, Mr Lee gave a personal insight into how he raised his children to become self-reliant and why the family decided not to live at the official residence at the Istana. Mr Lee said: "As Prime Minister, I was given a house at Sri Temasek. So I took them (our children) there one day to play and Sri Temasek was on high ground. They were playing with a ball, the ball rolled down, and the butler ran about 50 to 60 yards to pick up the ball and bring it back. "My wife and I watched and said if we stay here for five years, our children will grow up believing that life is like that - that somebody will always be there to be pick up balls for them, (so) we stayed at home."

• opportunities for more S'pore firms in Tianjin Eco-city projects More Singapore companies, including small and medium enterprises (SMEs), may soon have opportunities to be involved in projects in the Sino-Singapore Tianjin Eco-city in China. Senior Minister of State for National Development, Grace Fu, was replying to a question by Dr Ong Seh Hong in Parliament on Monday.


Ms Fu said the ministry has been working with IE Singapore and the Building and Construction Authority to organise awareness seminars and business missions to the eco-city. "These include architectural consultants, developers, contractors, education providers, solutions providers and service providers. Surbana International Consultants, for example, was involved in drawing up the masterplan as well as the design for the first public housing project for the eco-city," said Ms Fu. She also told Parliament that the development of the eco-city had made good progress despite the global financial crisis. Land reclamation works in the four-square-kilometre startup area have been completed, while other works such as landscaping and utility works are progressing well. Ms Fu said the startup area is on track to be completed by late 2013.

• Social enterprises no different from normal businesses & must be viable A new association was launched on Tuesday evening to support businesses that help the disadvantaged and needy. At the ceremony, the Minister for Community Development, Youth and Sports, Vivian Balakrishnan, said the Social Enterprise Association will provide opportunities for networking and mentorship to develop the sector. Dr Balakrishnan said this is important to help it succeed. His ministry has committed S$5.5 million to fund 73 social enterprises since 2003. But of these, one-third are no longer active. Dr Balakrishnan said social enterprises must be viable businesses and urged the public not to treat them as charities. He added: "We're not asking for special favours. Don't give the contract simply because it's a social enterprise. But be open-minded, look at what they're offering, if they offer good value for money, give them a chance. That's all we're asking." Some 130 businesses, entrepreneurs and organisations have joined the new association. The association was formed following recommendations made by a government-appointed Social Enterprise committee in 2007. Social enterprise Bridge Learning runs an education centre for children with learning disabilities. It sets aside funds to subsidise the programme fees of children from low-income families. Bridge Learning executive director, Areena Loo, said: "It can be a pretty lonely journey as a social entrepreneur. It's the less-travelled path, whereby people don't understand why you are so crazy. What makes you want to do that? Why do you earn money and then you give it away? It's not something everybody can understand." The business was started in 2003 with seed funding from the government. But it was self-sustaining after its first year and has grown at an average rate of 150 per cent yearly. It currently enrols about 220 students a year and has assessed more than 3,000 students since inception in 2003.

• SBF says recent Iran business mission will attract sales of S$85m The Singapore Business Federation (SBF) has said a recent business mission that it led to Iran will attract sales of about S$85 million over the next 12 months. Most of the business sales will be from the oil and gas industry. An 18-member delegation, including firms from the oil and gas, engineering, construction and IT solutions sectors, went on the mission earlier this month. The business delegation was also joined by Non-Resident Ambassador of Singapore to Iran, Mr Ong Keng Yong, and representatives from the Ministry of Trade and Industry. SBF said that business communities from both sides noted challenges concerning trade financing and visa issues. Moreover, both sides underscored their commitment to seek help from the relevant authorities to resolve the issues in a timely manner.


• Economic crisis an opportunity to push for green tech: Dutch minister The Dutch Minister of Economic Affairs, Maria Van Der Hoeven, who is in Singapore on a business visit, noted that there has been a change in attitude amid the global downturn - with a greater push now towards environmentally-friendly technology and practices. According to Ms Van Der Hoeven, this presents opportunities for economies with a hi-tech base like Singapore and the Netherlands. "This is an opportunity to rethink our way of life, to alter our production methods as well as our patterns of consumption," said Ms Van Der Hoeven. "We must aim for sustainable development - green investments, green technology and green jobs. We must turn this crisis into an opportunity for radical change," she added. The minister was speaking at a luncheon between Dutch and Singaporean business leaders. She said the two economies could work together in areas of shared expertise like membrane filtration technology to develop a green agenda, citing collaboration between a Dutch firm and local membrane maker Hyflux. "There is an immediate need and huge market potential for membrane separation technologies, in replacing very costly and high energy consuming distillation processes in petrochemical industries. In other words, collaborative projects significantly boost innovation and contribute to a low carbon economy," said Ms Van Der Hoeven. Dutch Prime Minister, Dr Jan Peter Balkenende, was also in Singapore to deliver a speech at the annual Singapore Lectures, organised by the Institute of Southeast Asian Studies.

• Environmental Front • At Social Front

Vietnam • Political Front • Vietnam PM assures full cooperation

President Mahinda Rajapaksa and the Sri Lankan delegation met Prime Minister of the Socialist Republic of Vietnam, Nguyen Tan Dung last evening during the three day state visit to Vietnam. Vietnamese Prime Minister, Dung during his discussions with the President and the delegation expressed Vietnam's keen interest for oil and gas exploration in Sri Lanka. President Rajapaksa told Prime Minister Dung that the proposal laid by the Government to engage in oil exploration will be taken into consideration and further examined. Prime Minister Dung also stressed that the Government of Vietnam will not allow any remnants of LTTE terrorism to raise its head again in the region and assured that Vietnam will always continue to stand by the Sri Lankan Government. The Vietnam Government expressed hope that the demining process would soon be completed for the early resettlement of the displaced persons and asserted willingness to help in the demining process claiming that Vietnam had much experience and expertise in that field. Following bilateral discussions the two sides signed five agreements on 'Protection and Promotion of Investments signed by Enterprise Development and Investment Promotion Minister, Anura Priyadarshana Yapa and Vietnam's Planning and Investment Minister Vo Hon Phuc, a Memorandum of Understanding on Cultural Cooperation between the Ministry of Culture, Sports and Tourism of Vietnam and the Ministry of Cultural Affairs and National Heritage of Sri Lanka signed by Minister of Foreign Affairs, Rohitha


Bogollagama and the Permanent Deputy Minister of Culture, Sports and Tourism, Nguyen Danh Thai. A work plan for the year 2010-2011 on Agriculture Development Cooperation between the Ministry of Agricultural Development and Agrarian Services of Sri Lanka and the Ministry of Agriculture and Rural Development of Vietnam was signed by Minister Bogollagama and Deputy Minister of Agriculture and Rural Development, Vu Van Tam. They also signed an agreement on 'Work Plan for the year 2010-2013 agreement pertaining to 'Technical Assistance from the Government of Vietnam for Aquaculture between the Ministry of Fisheries and Aquatic Resources of Sri Lanka and the Ministry of Fisheries of Vietnam. Both parties entered into an agreement on 'Cooperation Agreement on Prevention and Combating Crime' between the Ministry of Public Security of Vietnam and Ministry of Defence, Law and Order of Sri Lanka signed by Gamini Senerath, Additional Secretary and Chief of Staff to President and Permanent Deputy Minister of Public Security, Nguyen Khanh Toan. President Rajapaksa and his Vietnamese counterpart witnessed the signing of the agreements for cooperation between the two countries

• Foreign Relations • Geo-strategic front • Economic Front • Survey shows govt, FIs need to boost efforts to help SMEs

The ability for companies to get access to funding has been affected in recent months by the global financial crisis. But a recent survey has shown that some 62 per cent of small and medium-sized enterprises around the world have managed to survive the downturn by boosting cash flow through internal financing. The Access to Finance for the Small and Medium Enterprise report was commissioned by three major global accounting bodies - CPA Australia, CGA Canada and the ACCA. The research, conducted by the Economist Intelligence Unit, highlighted the needs of SMEs as the global economic climate begins to improve. SMEs represent roughly 99 per cent of enterprises around the world, produce 40 to 50 per cent of the economic output of affluent countries, and account for more than half of all private sector employment in the OECD. It is of no surprise that a sustained global economic recovery will depend heavily on the growth of the SME sector, which has struggled amid the current recession. The recent SME survey has indicated that SMEs need a helping hand in order to restart investing and hiring activities. Neil Stevenson, executive director, Brand, ACCA, said: "I think we've come to a critical juncture and I think our survey does illustrate that conditions have improved, and certainly if you look at the survey, SMEs are seeing good growth opportunities for the future. "We've seen in the survey that investment has been postponed (by SMEs), that SMEs are facing cost-cutting and saving, so now is the time for governments to look at where we have got to (help) and what will be required to take us to the next stage of development that we need." Some 82 per cent of SMEs surveyed believed that banks were not doing enough to pass on interest rate cuts. Experts said when it comes to access to funding, banks need to be less formulaic in their approach to SMEs, assess risk on an individual basis and reduce the risk of incorrect rejections.


While 44 per cent of SME respondents stated that the financial crisis had dented their ability to expand into new markets, many were optimistic about growth potential in the year ahead. . SMEs in the Asia Pacific, as well as in Africa and the Middle East, are expected to outperform the rest of the world as the global economic recovery unfolds.

• Vietnam Targets Economy to Grow by 6.5% Next Year Vietnam is targeting economic growth of 6.5% in 2010 against expected growth of 5.2% this year, aided by a flexible monetary policy that will also help contain inflation, Prime Minister Nguyen Tan Dung said.Gross domestic product is projected to be 1,931 trillion dong ($106 billion) in 2010,

• Lawmakers want lower budget deficit target next year House members discuss budget deficit at a session in Hanoi Friday Vietnamese legislators said the 2010 budget deficit should be kept at 6 percent of gross domestic product instead of 6.5 percent as projected by the government. Fiscal policies need to be tightened, Ho Chi Minh City representative Tran Du Lich said on Friday at a meeting of the National Assembly, the country’s highest lawmaking body. If public capital spending was not monitored closely, there would be a high risk of inflation, he said. Many lawmakers said it was necessary to tackle the growing deficit, which the National Assembly Finance and Budget Committee has forecast to stand at 6.9 percent of GDP this year, up from 4.1 percent in 2008. They wanted the government to cut the deficit to 6 percent next year. But Finance Minister Vu Van Ninh said the government was aiming to keep the budget deficit at 6.5 percent of GDP in 2010 because revenue sources were not expected to grow next year. Many tariff lines would be cut next year, reducing government revenue by around VND3 trillion, Ninh said. As a result, if the budget deficit next year had to be cut to 6 percent, the government would need to ask localities to contribute more, or investment, social welfare and salaries would need to be reduced, he said. “The important thing is government debt is still in the safe zone,” Ninh said, noting that many other countries also have budget deficits as they want to spend money for economic development. Vietnam’s government debt is forecast to stand at 40 percent of its gross domestic product this year, up from 36.5 percent in 2007, the National Assembly Finance and Budget Committee said earlier this month. The debt may continue to surge to 44 percent of GDP next year. However, Lich said Vietnam’s authorities were not excellent forecasters, implying that government revenue sources may not fall next year as expected by the government. The government set the 2009 budget deficit target at 7 percent of GDP after there were forecasts that government revenue would fall by as much as VND60 trillion this year, Lich said. But revenue has been on the rise so far this year, he said, asking why the full-year budget deficit was still expected to reach only 6.9 percent of GDP despite sharp revenue hikes. Lich said although the government had not successfully raised funds through bond sales but “there was still enough money for investment.”. Vietnam’s government reportedly aimed to raise up to US$1 billion from bond issuances on the domestic market in 2009, Standard & Poor’s said in a report last month. “However, the weak demand for its offerings in late August suggests that this target is unlikely to be met. The low interest rate that the government was willing to pay did little to attract investor interest.” Standard & Poor’s forecast government budget deficit to rise


to 6.7 percent of GDP this year. “This reflects both an expectation of weaker economic performance in the year as well as countercyclical measures the government is undertaking,” said the US-based provider of independent investment research. The forecast compares with an estimate of 10.3 percent of GDP by the Asian Development Bank last month. Vietnam’s GDP growth this year is projected to hit a decade-low of 5.2 percent, in line with a target of around 5 percent set by legislators, Prime Minister Nguyen Tan Dung said on Tuesday.

• Social Front • Situation Report Vietnam – Typhoon Ketsana Oct 2009

As it did with the Philippines and Cambodia, Typhoon Ketsana struck Vietnam in late September, causing serious damage. The storm hit on September 29, 2009 and killed 163 persons in 14 provinces in central Vietnam. More than 258,000 houses were destroyed or damaged; flooding affected nearly 295,000 others, more than 100,000 of them in the central province of Thua Thien Hue. Other infrastructure damage included roads, schools, health clinics, agricultural land, irrigation systems and dykes. Nonharvested crops and livestock were lost, and fruit trees and commercial forests were damaged. Another major concern is sand and salt damage to fragile rice and vegetable fields. PDA Response Presbyterian Disaster Assistance is responding in cooperation with our ecumenical partner and as a member of Action by Churches Together (ACT). The response effort, primarily in the central province of Thua Thien Hue, focuses on assisting 5,000 households in 10 villages and includes upgrading shelters; improving food security through strengthened livelihoods, including seed distribution; construction of wells and education on health and sanitation; and emergency preparedness training. Specific Response A priority of the response is disaster mitigation with the following objectives: Repair and/or upgrade of shelters to better protect families from annual floods and storms.

• Strengthening and restoring livelihoods to provide families access to and/or the ability to purchase sufficient quantities of food.

• Improvement of water and sanitation facilities and the practice of good hygiene to improve overall health.

• Improvement of local physical environment for increased resiliency to storms and floods, thus reducing risk of damage to livelihoods.

• Improvement of local emergency preparedness and response to recurring natural disasters, to reduce the number of deaths/injuries and the loss of property.

• Strengthening of community organization and action to help villages become more resilient to natural disasters.

What you can do You can stand in the gap for disaster survivors and help the church in this response. GIVE. The generous sharing of your financial blessings through the One Great Hour of Sharing offering and special designated giving provides resources to assist with emergency needs, clean up provisions and long-term and unmet needs .

• Vietnam to import additional 10,000 tons of sugar this year


Vietnam’s government allowed companies to import an additional 10,000 tons of sugar this year because of increasing demand, according to a statement on the government’s website, citing the Ministry of Industry and Trade. The decision was made after demand for sugar during the mid-autumn festival last month boosted prices to as much as VND16,000 (90 US cents) per kilogram, the statement said, without giving further details.

• Environmental Front Cambodia

• Political Front • Cambodia parliament votes to limit mass demonstrations

The Cambodian National Assembly [official website] approved legislation Wednesday banning demonstrations of more than 200 people. The bill, which passed [Phnom Penh Post report] Cambodia's lower house by a vote of 76-25, would also ban any gathering inside or outside the gates of factories or government buildings, and would require groups to obtain permission for planned demonstrations a minimum of 12 hours in advance. Officials from the ruling Cambodian People's Party (CPP) [party website] described the bill as an initiative to enhance security and public order. The opposition Sam Rainsy Party [party website] said that the legislation is a pretext to limit free speech [AFP report] and stifle dissent. The bill must be approved by the Cambodian Senate and King Norodom Sihamoni [official websites] before becoming law. Earlier this month, the National Assembly approved [Phnom Penh Post report] a measure criminalizing defamation and insult, which was also opposed on free speech grounds. In August, UN Special Rapporteur for Human Rights in Cambodia Surya Subedi [official profile] said that Cambodian restrictions on free speech were inconsistent [press release, PDF] with international standards. Subedi's comments came after the conviction [JURIST report] of opposition lawmaker Mu Sochua on charges that he defamed Prime Minister Hun Sen [official profile]. By way of contrast, the South Korean Constitutional Court [official website, in Korean] overturned a ban on nighttime assemblies last month, ruling it to be an unconstitutional [JURIST] violation of the right to free assembly. South Korea's Assembly and Demonstration law was enacted in 1962, also under the auspices of protecting national security and public order.

• Foreign Relations • Cambodia will not extradite Thaksin on Thailand’s request

Cambodia will not extradite former Thai Prime Minister Thaksin Sinawatra based on a request made by the Thai government, the Cambodian government has said. “The Royal Government of Cambodia likes to make it clear about its position that Cambodia will not extradite Thaksin on any request made by the Thai government if he decides to stay in the kingdom of Cambodia,” said a government statement issued on October 23.The Cambodian government’s statement comes a day after Thailand warned that it would request Cambodia to send Thaksin back to Thailand to serve his two-year jail term if he visits the country. Thailand had made the cautionary note after Cambodian Prime Minister Hun Sen said that Cambodia would warmly welcome Thaksin if he expresses his wish to stay in the country.Hun Sen had also said: "I consider Thaksin as my eternal friend. Cambodia will welcome him to stay here anytime. I will make a house available for him if he decides to visit Cambodia.”His statement had created a stir in Thailand, especially among pro-


government factions, prompting the government to play the ‘extradition’ card.The extradition treaty between the two country states that any party can refuse the extradition request if it considers the demand to be politically motivated, the Cambodian government statement said. The requested party also has a ground for the mandatory refusal if the requested party has well-founded reasons to suppose that the request for extradition made by the requesting party aims to institute criminal proceedings against or execute punishment upon the person, or that the position of the person sought in judicial proceedings will be prejudiced for any of the reasons mentioned above. The statement added that based on the two reasons the Cambodian government has a right to make an interpretation on whether the case against former Prime Minister Thaksin Shinawatra is politically motivated or not. However, the Cambodian government has said Cambodia will maintain its friendly relation and continue to cooperate in all fields with Thailand.

• Economic Front • Chinese loans to Cambodia

China will provide 853 million US dollars in loans to Cambodia for infrastructure, irrigation and dam projects to boost its economy and reduce poverty.Cambodia's foreign minister says the agreement was clinched on Friday when Chinese Premier Wen Jiabao met Cambodia's Prime Minister Hun Sen on the sidelines of an economy and trade fair in Sichuan. Hor Namhong says China continues to help Cambodia's infrastructure development, even though China itself faces problems from the global economic crisis. Reuters reports the money will be invested in new roads near the borders of Thailand and Vietnam and the expansion of existing links to the capital of Phnom Penh.At least 30 million dollars will go towards expanding the capacity of the Phnom Penh port to meet the increasing demand of cargo ships docked on Tonle Sap River.Cambodia is eager to develop new dams and irrigation projects to boost its agriculture sector, followed by the tourism and garment manufacturing sectors.

• Social Front • Hungry in Cambodia: Flood affected communities are still waiting for

food assistance The hunger period has been prolonged, and people in flood affected communities cannot wait any longer, international aid agency Oxfam warns. Food assistance is not being delivered quickly enough to the affected communities, and thousands of families who are in need of urgent food assistance are still marooned in floodwaters. Oxfam estimates that 15,000 households are waiting for immediate food assistance, and the number is increasing rapidly as floodwaters continue to recede slowly and many more families have used up their food stocks. Some households who received food assistance earlier were also running out of food for weeks. 'People in the flood affected regions needed food a month ago, and they are still waiting for food,' said Francis Perez, Country Lead of Oxfam International in Cambodia. 'Food insecurity is getting worse in the affected communities. Government bodies and international aid agencies concerned with the current situation must start delivering food assistance now.' About 100,000 people are affected by typhoon Ketsana which coincided with annual floods in late September and early October. The storm affected both farmers


who own farmlands and those who sell their labour to work on those farms, thus depriving both groups of their livelihoods. Normally people facing disruptions in their livelihoods in the provinces would have family members migrate to Phnom Penh and other provinces to look for work. But the cities are already flooded with unemployed workers due to the global financial storm that has ravaged the country's economy. So, that kind of coping strategy to stave off hunger may no longer be available as an option to those displaced by the floods. Oxfam has been distributing non-food items to about 5,000 families in three hard-hit provinces: Kampong Thom, Kratie and Stung Treng. Recognizing an eminent danger of food shortages among the affected communities, Oxfam has decided to urgently distribute food items to 1,000 families in addition to its non-food assistance. Oxfam continues to coordinate relief assistance with government authorities and other agencies at the national and local levels.

• Environmental Front • Cambodian PM blames wealth countries for climate change

Cambodian Prime Minister Hun Sen on Monday blamed the wealth and advanced countries for climatechange and global warming that pushed the planet to have weather change, irregular rainfall, flooding, disasters and storms. "The wealthy and developed countries produced too much greenhouse gases and carbon dioxide and they pushed this world into danger, have climate change and global warming," Hun Sen madethe remarks at the First National Forum on Climate Change opened here Monday afternoon. Calling those acts as "sins", the premier urged the wealthy countries to take more responsibility, to transfer modern technology and offer more aids to help poor countries who are veryvulnerable to climate change in order to cope with the climate change. However, the premier said that "we still have to have international cooperation to prevent and deal with the climate change and global warming." Cambodia is doing everything that contributes to reduce carbon dioxide emission and set up the policies to protect, conserve the forestry and replant the forestry in the country, he said, adding that currently, Cambodia had stopped exporting the woods to foreign countries even though it is the national income resource. He, meantime, asked wealth countries and developed countries to pour more fund to help poor countries and least developed countries. Hun Sen also said that Cambodia will continue to stand on own help in saving the climate without waiting the assistance from the wealthy and developed countries. Cambodia will respect the U.N. convention of climate change and Kyoto Protocols and will make its effort to follow these legal tools, he noted. "We also supported to use solar energy system for people and also support to use renewal of energy for local people," he added. "This event will help to share experience and expand the cooperation with other partners in climate change projects." Laos

• Political Front • Foreign Relations • Laos, China pledge deeper relationship

Prime Minister Bouasone Bouphavanh and Chinese Vice-Premier Li Keqiang pledged on Monday to strengthen economic exchanges and deepen the strategic relationship between the two nations, according to Xinhua report on 19 October.


They made the remarks during their meeting in Nanning, capital of the Guangxi Zhuang Autonomous Region, ahead of the 6th China-ASEAN Expo to be held from 20 to 24 October.Vice-Premier Li Keqiang said China and Laos enjoyed good-neighbourliness with mutual political trust, deep economic cooperation and mutual support in terms of international and regional affairs.China is willing to consolidate friendship with Laos and expand cooperation on such areas as agriculture, mining and infrastructure, Li said, adding China will seek new channels of cooperation for mutual benefits. Premier Bouasone hailed the achievements China has made in the process of modernisation, noting the comprehensive strategic partnership between Laos and China is conducive to the reform and opening up of both sides. Laos is willing to continue high-level visits, step up economic ties with China, and lift the relationship to a higher level, Mr Bouasone said.

• Economic Front • Vietnam?s firm to explore copper ores in northern Laos

The Green Indochina Development Joint Stock Company (GID) will cooperate with its Lao partner to explore for copper ores in Xiengkhouang and Houaphanh provinces, northern Laos. A contract to this effect was signed in Vientiane on Oct. 16 between the Lao Government, GID and the That Luang Development Joint Stock Company (TDC).Under the contract, GID will contribute 95 percent of the project?s preliminary investment of 20 million USD, while the TDC will cover the rest. The exploration will be conducted on a 500 sq.km area during 54 months. The two investors will set up a joint venture named the Indochina Mining Company to execute the project.

• Laos, Thailand to double trade by 2010 Laos and Thailand have reached a consensus to double the volume of the two-way trade by 2010 as compared with this year?s figure, requiring Laos?s exports to Thailand to triple the current value. The two sides are preparing to draw up a plan to boost trade by 2010, which is seen to be feasible as Thailand has taken the lead among foreign investors in Laos over the past nine years. Thailand is currently investing in 216 projects representing USD 2.5 billion in Laos. China ranks second, with over USD 2.1 billion in 303 projects, followed by Vietnam with over USD 1.9 billion in 189 projects. The trade between Laos and Thailand has grown considerably in recent years. Last year, the two-way trade reached nearly USD 2.4 billion, up by 34 percent as compared with 2007. Laos?s imports from Thailand increased by 30 percent last year to nearly USD 1.8 billion while its exports to the latter reached USD 613.7 million.Laos imported petroleum, motorbikes, spare parts and iron and steel from Thailand and exported minerals, garments, textile and wood-based products to its neighbouring country.

• Savannakhet expects GDP rise by 13 % Although facing unfavourable condition, Savannakhet province believes its economy and gross domestic product (GDP) will increase from 12.9 to 13.5 per cent this fiscal year, according to Deputy Head of the Planning and Investment Service of this central province, Ms. Khampin Phengmany.


Ms. Khampin made the statement at a meeting held locally between the service and its finance counterpart to discuss the socio-economic development in Savannakhet for the 2009-2010 fiscal year. She said the province would pay much attention to realising its plan to strive for 7.6 million kip GDP or (US$891) for this fiscal year. The province recorded US$799 GDP for the 2008-2009 fiscal year. The agriculture and forestry sector plans to share 41.8 per cent of the entire GDP of the province, up by 8 per cent, while the industry sector projects its share of 30.5 per cent of the province?s entire GDP, up by 18.76 per cent in the 2009-2010 period. The service sector aims a rise of 16.6 per cent and to share 27.6 per cent of the GDP of the province. Savannakhet plans to rake in 646.3 billion kip for the state coffer, up by 8.28 per cent over that of last year. The value of export is expected to exceed US$619 million while import is set at US$506 million. Ms. Khampin urged the participants to implement the province?s socio-economic development plan, mostly by addressing barriers of revenue collection and the shortcomings on budget expenditure. In addition, Ms. Khampin urged the provincial authorities to pay more attention to promoting the agricultural production of local farmers to meet the consumption demand in the province and for export.

• At Social Front • Laos just reports 17 dead victims from Ketsana, while welcoming

emergency aid The latest report from the Ministry of Labour and Social Welfare disclosed yesterday that Ketsana had killed 17 people, caused one missing, injured 91 others and affected at least 178,000 people. Meanwhile hundred thousands of victims of the tropical storm Ketsana need more emergency assistance such as rice, drinking water, medicine, temporary shelter, schools, household utensils and others. The Lao government?s poverty reduction strategy plans, which are projected to be basically achieved by 2015, seem to face prolongation by the recent tropical storm Ketsana Typhoon. In collaboration with the UN, foreign embassies, representatives of international organisations, non-government organisations( NGOs), state and private organisations, the Ministry of Labour and Social Welfare held an emergency meeting on 22 October at Vientiane?s Novotel Hotel to give information on the damage of the tropical storm, which hit five southern provinces from 29 September to 5 October 2009. The meeting was a venue to discuss possibilities of relief and mobilisation of funds for victims of Ketsana. During the meeting, Prasith Detphommatheth, Director General of the Social Welfare Department, Ministry of Labour and Social Welfare, reported that after the destructive sweep of the storm in five southern provinces of Laos, namely Attapeu, Saravane, Sekong , Savannakhet and Champassak provinces, at least 17 people died, 91 injured, one has gone missing, 27,836 household affected, 9,602 displaced. The damage has also been made to 4,085 hectares of rice fields,, 19,506 hectares of crop fields, killed 551 buffaloes, 1,948 cows, 2,032 pigs and 11,748 poultry. Besides, 32 schools, three local hospitals, 14 irrigation facilities and roads were damaged completely. Now the Lao government has provided at least 100 billion kip for victims of Ketsana. Meanwhile the Ministry of Labour and Social Welfare have mobilised more than 3


billion kip from companies, international and private organisations. However, the damage of the storm may need hundred thousands of billions kip to restore the basic infrastructure, schools, agriculture, hospitals as well as treatment of injured people, said Mr Prasith. A press release disclosed yesterday during the meeting that on 16 October 2009 the UN Disaster Management Team issued a Central Emergency Response Fund (CERF) appeal, under the rapid response window, for over US$ 3 million to help victims of Ketsana, 19 October the Inter-Agency Standing Committee (IASC) issued a Flash Appeal for US$ 10 million. On the same day, the Ministry of Labour and Social Welfare disclosed that out of 178,647 people affected, 115,000 or 64%, need more food. Their food stock is estimated to tide over for three months. 15,000 households need rice seeds. Now 21,300 primary school pupils and 579 teachers have been affected because their schools, education materials have been destroyed and clothes lost. Laos is one of least developed countries in the world, with a population of over 6 million. The majority of land is mountainous. Throughout the country, there are 47 poor districts.

• USAID gives US$320,000 to disabled people in Laos The Handicap International Belgium Programme would be giving 1,700 people with disabilities in Vientiane, Savannakhet and Vientiane provinces, increasing access to education and employment opportunities and this was made possible by a USD 325,600 grant from the United States Agency for International Development (USAID) to this body. The Handicap International Belgium (HIB) would be working with the Lao government on the Economic Inclusion of People with Disabilities (EID) project, which was designed by the Lao Disabled People?s Association (LDPA), albeit with technical assistance from HIB. A memorandum of understanding was signed last Friday in the premises of the Ministry of Labour and Social Welfare. The two signatories of this MOU were Country Director of HIB in Laos, Mr Luc Delneuville, and Director General of the Department of Pension, Invalids and Disabilities of the Lao Ministry of Labour and Social Welfare, Ms Bouaphanh Likaya. Ms Bouaphanh said that the new project would provide people with disabilities with expanded education, employment and other opportunities. The programme will run until March 2012 and would be operational in 16 districts: 7 districts in Vientiane Capital, 6 districts in Savannakhet and 3 districts in Vientiane province.Ms Bouaphanh said that under this project, the LDPA would get people with disabilities to acquire certain skills so that they can seek employment from state and private companies. This new project will empower people with disabilities to use community resources to get education and find work. The LDPA will develop small district offices where people with disabilities can get information and guidance about jobs, matching their interests and skills with employment opportunities.The U.S government, through USAID?s grant to HIB, will support the LDPA by providing technical advice on micro-finance and micro-enterprise training, as well as the provision of loans. Deputy Chief of Mission, U.S. Embassy to Laos, PeterM. Hamond, Acting Mission director of USAID?s Regional Development Mission for Asia, Ms Barbara, and LDPA President, Mr Bounvieng Luangyot witness the signing ceremony.


• Japan grants relief aid to flood victims in southern Laos The Japanese government has provided relief assistance worth USD 111,800 to flood victims in the southern provinces of Laos. Attapeu, Saravane and Sekong were hit by tropical storm Ketsana. The typhoon also hit some parts of Savannakhet.The hand-over of the relief took place at the Ministry of Labour and Social Welfare last Friday and was performed by Minister of Labour and Social Welfare, Ms. Onechanh Thammavong, and the Japanese Ambassador to Laos, Mr. Masaaki Miyashita. The relief package included blankets, plastic sheets, water tanks and water purifiers. Flood triggered by Typhoon Ketsana destroyed more than 15,000 households, damaged farmland and basic infrastructures including schools and hospitals in the southern provinces. Assistance from various sectors keeps flowing to the flood victims. Up to last Friday, the assistance to the victims amounted to over 2,771 billion kip totally.

Brunei

• At political Front • Employment Order 2009 Passed

His Majesty the Sultan and Yang Di-Pertuan of Brunei Darussalam, has consented to approve the Employment Order 2009 and Employment (Domestic Workers) Regulations 2009, said the Ministry of Home Affairs (MoHA). The new law has come into effect on Sept 3, 2009, replacing the previous Labour Act (Chapter 93) that was introduced on Feb 1, 1955. The Employment Order 2009 consists of numerous renewals in regulation, outlining rights and responsibilities of employers and employees in the public sector. These include security for employees' rights, upgrade in authority and investigation for the controlling enforcement officers, the introduction of sanctioned compounds for labour offences (under the Order), and the introduction of new provisions (under the Order) which include rights to annual leave, sick leave, beneficial payments, resignation and retirement benefits and security rights for part-time employees. Meanwhile, sterner punishment for labour offences under the law states that employers failing to pay their employees' wages can be fined an amount not exceeding $3,000 for each offence or imprisoned to not more than a year or both.For the offence of employing (with salary) a foreign worker without a licence is punishable by law to a fine not less than $6,000 and not exceeding $10,000 for each offence, or imprisoned not less than six months and not exceeding three years or both. MoHA said the Employment Order 2009 is His Majesty's initiative and endeavour to place the sultanate as one of the leading Asian nations in terms of employment stability and modernisation while at the same time, to promote corresponding relations in a conducive working environment. It added that the Order is expected to create reconciliation and security for an employee's rights to a higher level of standard in accordance with `good practices' acknowledged by the International Labour Organization (ILO).

• ‘Connectivity For An Asean Community' His Majesty the Sultan and Yang Di-Pertuan of Brunei Darussalam, yesterday attended a battery of meetings that included the 15th Asean Summit Retreat; Asean Summits with


Dialogue Partners namely the People's Republic of China, Japan, Republic of Korea (ROK), and India; and the Asean Plus Three Summit. The summits were chaired by Thai PM Abhisit Vejjajiva, at a leading hotel in Cha-am. Yesterday's events started with the Retreat of the 15th Asean Summit, which in a titah, His Majesty noted the importance of enhancing Asean "connectivity", where greater efforts to link the countries in the region together could play a vital role in building the Asean Community. His Majesty viewed that such connectivity would facilitate the movement of goods, services, capital and skilled labour, thus promoting economic growth and creates other opportunities. His Majesty believed .that this could become more evident as Asean moved further towards achieving its Economic Community, particularly when it substantially eliminates almost all tariffs in January 2010. His Majesty also stated that these linkages would continue to strengthen Asean's efforts in addressing global challenges such as climate change, natural disasters, and food and energy security. His Majesty highlighted the need to improve coordination and accessibility during emergency situations, and was -pleased to note that the Asean agreement on disaster management would come into effect soon. His Majesty further encourage Asean to cooperate with its dialogue partners in ensuring a mutually meaningful outcome of the 15th Conference of Parties to the United Nations Framework Convention on Climate Change (UNFCC) to be held in Copenhagen in December 2009. At the end of the session, the leaders adopted the "Chaam Hua Hin Declaration on Strengthening Cooperation on Education to Achieve an Asean Caring and Sharing Community", "Asean Joint Statement on Climate Change to the 15th session of the Conference of the Parties on the United Nations Framework Convention on Climate Change and the 5th session of the Conference of Parties serving as the meeting of Parties to the Kyoto Protocol", and "Asean Leader's Statement on Asean Connectivity". At the 12th Asean-China Summit, His Majesty highlighted the significant progress made in the dialogue relations, and expressed appreciation to China for its new initiatives to enhance cooperation in the areas of energy and law enforcement. His Majesty underscored the need for closer collaboration, particularly in the areas of maritime security and transnational crime. His Majesty welcomed the first formal Asean-China Ministerial Meeting on Transnational Crime, which would be held in Cambodia this November, and suggested that both sides enhance maritime cooperation to ensure the safety of regional trade. On the economic front, His Majesty stated that the global economic situation continued to threaten efforts in sustaining economic growth in the region and commented that the recent signing of the Investment Agreement would strengthen cooperation and bring prosperity. His Majesty added that the Memorandum of Understanding (MOU) on Intellectual Property and Standards would enhance the quality of Asean and China's goods and services. His Majesty expressed appreciation to China for its contribution to the region, particularly in establishing the Fund for Investment Cooperation, the Credit Facility, and for China's participation as a development partner in BIMP-EAGA.


With regard to social-cultural cooperation, His Majesty welcomed the on-going efforts in strengthening people-to-people contacts, and looked forward to signing the MOU on the Establishment of the Asean-China Centre to promote cultural, tourism, trade and investment ties between both sides. His Majesty concluded his titah by expressing appreciation to China for its cooperation and support throughout Brunei Darussalam's tenure as the country-coordinator for Asean-China dialogue relations.At the 12th Asean-Japan Summit, His Majesty welcomed Prime Minister Yukio Hatoyama who joined the summit for the very first time. In his titah, His Majesty encouraged Asean and Japan to continue efforts in implementing the bilateral and regional economic partnership agreements. His Majesty acknowledged Japan's leading role in energy efficiency and environmental management. In this regard, he expressed appreciation to Japan for the assistance to developing countries in addressing climate change.He underscored the importance of ensuring sufficient food reserves in the region. In light of this, His Majesty encouraged more investments in the field of agricultural industries, and the sharing of information and technology, as well as capacity building programmes to enhance sustainable food production. His Majesty observed that people-to-people exchanges were a distinct feature of Asean-Japan relations, and commended Japan's efforts in youth exchanges through the Youth Ship and the East Asia Youth Exchange Programmes.In conclusion, His Majesty stated the Asean attached importance to the dialogue relations, and looked forward to working closely with Japan in further strengthening the partnership. At the 12th Asean-ROK Summit, His Majesty stated that Asean and Korea celebrated its 20th anniversary last June in Jeju Island, where new ideas were introduced to further broadened and deepened the dialogue relations. His Majesty, in particular, recalled Korea's efforts to address climate change through its Green Growth Strategy and welcomed the recommendations of the Asean-TOK Eminent Persons Group (EPG) to enhance partnership on climate change through the sharing of expertise and technologies.His Majesty also acknowledged the EPG's recommendation to promote people-to-people exchanges, especially initiatives that involved youth exchange programmes, scholarship schemes, and activities that showcased the diverse culture and heritage. His Majesty then joined the Asean and Northeast Asian colleagues for the Asean Plus Three Working Lunch, hosted by the Prime Minister of Thailand. At the Working Lunch, leaders exchanged views on regional and international matters.In the afternoon, the leaders- of Asean, China, Japan and Korea proceeded to attend the 12th Asean Plus Three Summit. In that session, His Majesty expressed satisfaction on the progress of the Asean Plus Three process, in particular their involvement in the Chiang Mai Initiative as well as the Asean FTAS. His Majesty stated that climate change, natural disasters, pandemic diseases and the economic slowdown were issues of common concern, and reiterated the need to work together in addressing these challenges. His Majesty thanked the Plus Three countries for assistance in dealing with the outbreak of A H1N1 Influenza. His Majesty also expressed the view that climate change could affect every aspect of human life. In this regard, he encouraged Asean plus Three to ensure the meaningful outcomes of the 15th Conference of Parties to the UNFCC.


His Majesty viewed that Asean and Plus Three would continue to promote greater sharing of information, technology transfer and capacity building on climate change. He was pleased that disaster management and emergency response remained a priority area for the Asean Plus Three process. His Majesty was satisfied with efforts made to strengthen cooperation on food security, and looked forward to the establishment of the Asean Plus Three Emergency Rice Reserve. At the end of the Summit, the leaders issued the "Cha-am Hua Hin Statement on Asean Plus Three Cooperation on Food Security and Bio-Energy Development." At the 7th Asean-India Summit, His Majesty praised India for its achievements in all fields of development, and was particularly impressed with the vibrancy of its economy. His Majesty stressed the importance of working together to respond effectively to the current economic situation, and supported the efforts of emerging economies at the recent G20 Summit in Pitfsburgh to restore the global economy, market confidence and further growth in the region. His Majesty was pleased that Asean and India had concluded the Agreement on Trade in Goods. His Majesty thanked India for its contribution and assistance to Asean's community building activities, in particular the establishment of the Asean-India Green Fund to promote the sharing of technology and best practices on climate change.His Majesty concluded his titah by acknowledging India's contribution to the political and security cooperation such as through Asean Regional Forum, and emphasised the need for cooperation in counter-terrorism and transnational crime.In the evening, His Majesty attended a gala dinner hosted by the Prime Minister of Thailand and his spouse, in honour of leaders attending the 15th Asean Summit, at one of the leading hotels in Cha-am

• At Economic Front • Privatization Plan To Be Ready In A Year

A Master plan that will provide the blueprint and details on implementing privatisation policy in Brunei is scheduled to be completed in 12-month's time, said a senior government official yesterday. Acting Director-General of the Department of Economic Planning and Development (JPKE) Shahrom Hj Suhaimi said that this master plan will outline a clear vision, policies and strategies for building the foundation, as well as charting the strategic direction of Brunei's privatisation programme for the next 20 years. "Privatisation is recognized as an important government strategy particularly as the private sector has been perceived as the engine of growth for the future development of the Sultanate," he said during a signing ceremony between the department and PricewaterhouseCoopers (PwC) who will undertake the consultancy work in preparing a privatization plan for Brunei. He said that the initiative was in line with the Outline of Strategies and Policies for Development (OSPD) for Brunei Vision 2035 to see the private sector plays a larger role in the development of the economy.Shahrom stated that privatisation serves as a platform to realise the objectives of several economic and social policies such as improving efficiency and productivity of the public services and state-owned enterprises, to stimulate the development of entrepreneurs and the private sector, to encourage investment and streamline the public sector workforce.


The plan will also provide recommendations on regulatory framework, financial infrastructure, institutional set-up, human resources issues and legal framework required to execute the planning, coordination, implementation and monitoring of the privatisation programme in Brunei. "Therefore a privatisation master plan is pivotal for successful privatisation in the country," he said, adding that the corporatisation of the Telecommunications Department to Telekom Brunei Berhad (TelBru) in 2006 is seen as the "flagship" of the privatisation programme. Since the early 1990s, the government has taken several initiatives as part of the privatisation drive in the country including the establishment of the Special Committee on Privatisation in 1993, whose role is to guide and supervise the privatisation programme.For the Privatisation Master Plan, PwC has teamed up with both international and local legal advisers to ensure their advice incorporates international best practice with relevant, valuable local expertise. PwC has been providing leading-edge advice on privatisation to governments and the private sector for over 15-year, from steel and heavy manufacturing to utilities, public transport, health and education services.Signing the contract on behalf of Brunei's government was the acting director-general while PwC was represented by its partner, Mark Rathbone.Present to witness the signing was Permanent Secretary at the Prime Minister's Office Hj Murni Hj Mohamed

• Goal To Increase Awareness In Energy Efficiency & Conservation Energy situations surrounding Asean countries and Japan have been extremely tough with energy price now going upward again accompanied with the global economic crisis, said the representative of ACE in his opening statement at the seminar. Global warming is a continuing issue worldwide and its prevention is one of the most difficult challenges in this century and there is a need to preserve the limited energy for future generations. The representative of ACE also stated that, "Japan's decades of experiences have testified that Energy Efficiency Conservation is proven to be the most practical and effective means in terms of economical aspects. Therefore, we understand that it is very important to build common basis to implement and disseminate Energy Efficiency & Conservation measures through the multilateral cooperation in addition to the efforts by individual countries". The PROMEEC project realises this philosophy completely and the project activities share the benefit of the achievements while taking mutual responsibility for energy conservation and environmental protection. The current activities conducted by the PROMEEC project in Brunei Darussalam are very important towards future successes in Energy Conservation promotion. Since petroleum and gases are the most valuable natural resources in the sultanate, energy efficiency and conservation contribute greatly to conserving the petroleum and gases. Understanding that the Brunei Darussalam's government has been making great effort in promoting energy efficiency and conservation in the country, in particular they believe that the Prime Minister's Office continues to play an important role in implementing the promotion of energy efficiency and conservation in the country.


"We would like to report that the energy audit made in Brunei Shell Refinery & Seria Crude Oil Terminal has been conducted by local participants under the leadership of the Prime Minister's Office and successful results have come out", he further pointed. Meanwhile, Executive Director of ACE, Nguyen Manh Hungn, in his opening statement pointed out that since Asean is showing great increase in economic performance and growth, an increasing - ratio of high utilisation of energy is very visible.He also said, "It has been the goal of the governments of Asean members to promote energy efficiency and conservation awareness and we are very happy to see that people are starting to recognise that energy resources are fast depleting and extreme conditions of climate change are manifesting." Thus, he added, the continued pursuit to implement energy efficiency and conservation activities are of top priority and have been one ofthe ways forward to boost cooperation between Asean countries and Japan. He further pointed out that with the existence of the Asean Plan of Action for Energy Cooperation (APAEC) 2004-2009, Asean is continuously strengthening its cooperation to ensure energy security, adding that the APAEC is the blueprint of cooperation between the member countries to achieve the region's pursuit of sustainable energy development. One area of cooperation in the field of EE&C also aims to strengthen technical capacities and disseminate information.

• At Social Front • Ostrich meat gains popularity in Brunei(social,eco)

RESTAURANTS serving orchid meat are noting its rising popularity even as a Malaysian lecturer cast doubt whether the meat is halal. "Our meat is in fact halal, because we get it from the Brunei Meat Company in Brunei and it was certified by two religious department officers," said Mohd Nova Akbar, Rizqun Coffeehouse chef. The restaurant has an ongoing promotion for ostrich meat imported from Saudi Arabia. He said the birds were processed under the strict supervision of the Brunei Religious Department. "A lot of people who come in to try the ostrich meat, inquire about whether it is halal or not, but we tell them that it is because it has been certified by Brunei," he said. Mohd Nova said that on average, depending on the part of the ostrich, a kilo of ostrich meat costs about $17. In a recent report, Professor Dr Abdul Salam Babji from the Department of Chemical Science and Technology, Universiti Kebangsaan Malaysia, said an ostrich is considered a "bird of prey" and that under the Islamic context, "birds of prey" are not halal. Bi Yi, assistant supervisor at the Emperor's Court restaurant, said, "Before it wasn't so popular, and then we did not have stock of the ostrich meat but now that we have stock we are getting a lot of customers asking us about the ostrich meat." She added that customers who like ostrich meat like the taste because it is mostly meat without fat. Bi Yi said their supply of ostrich meat is halal. She said even with the pricing, ostrich meat is gaining popularity. "We charge the ostrich meat to be the same as venison and beef. It is about $18 for a small portion, $25 for a medium portion and $35 for a large portion," she said. Teo Poi Hoon Foodstall, one of the more popular restaurants serving ostrich meat, said they buy the meat from a local supplier and the meat has been certified halal. "We are


popular for our ostrich meat dishes ... I think it is popular because of its taste. It is like beef," said a restaurant assistant, who wished to remain anonymous. She said their ostrich meat side dishes are considered more reasonably priced, as a small dish is about $15. "We also have just ostrich meat and rice for one person and that will be about $8. For noodles with ostrich meat, it can go between $6 and $8," she said.She added that it is a popular meat in Brunei and that there will be more people who enjoy it.

Business and Politics in Muslim World

South East Asia

Tatheer Zahra Sherazi

23 October to 30 October 2009

(Outline)

Summary Indonesia

• Political front: 9 • SBY and the future of the presidency • Geo-strategic Front • Economic Front 11 • Indonesian consumers more optimistic about the future • economic policy • Indonesia sees rebound in 2010 worker remittances • Social front 15 • Questions over Indonesia asylum deal • Environmental Front 15 • Indonesia may get $400 million from Japan to combat warming

Malaysia • Political Front 15 • Najib: We’re still ready to talk with PAS • Malaysia's Pakatan Rakyat faces problems • Foreign Relations • Economic Front 17 • Malaysia hopes that Muslim countries can agree on which goods and products

are halal, • Malaysia Refrains From Rate Increase to Spur Recovery • Najib hopes FTA signing will encourage investments • Social Front 21 • The government has been spending measly amounts on flood control


Philippine • Political Front • Foreign Relations • Economic Front 22 • Philippines Says Talking with Thailand on Rice Deal • Social Front 23 • Church in Philippines ready to negotiate for kidnapped priest's release • Thai police may make arrests over stock rumours

• Environmental front 24 • 4 Luzon areas placed under storm alert.

Thailand • Political Front 25 • Thai Political Crisis Drags In Asean Neighbours • Abhisit backs south's autonomy • Geo Strategic Front. 26 • Thai ship hijacked by pirates • Thailand-Cambodia Dispute Overshadows Summit • Foreign Relations • Economic Front • At Social Front

Singapore • Political Front • Foreign Relations • Economic Front 28 • PM Lee warns of marginalised ASEAN if it does not stay relevant • S'pore & India to launch second round of free trade review • Singapore's manufacturing output falls 7.7% on-year in September • S'pore firms should create better balance in pay structures: study • S'pore firms invest in new economic zone in China's Fujian province • Customer satisfaction levels still declining in various sectors • Some firms in Asian markets still face lagging demand • Some firms in Asian markets still face lagging demand • Clinton meets MM Lee, says Singapore is a valued partner • KPE ranked among best managed tunnels in Europe in design, safety • Experts say Singapore's economic landscape must evolve • APEC summit likely to open many trade doors • Experts say carbon trading markets are picking up • Singapore improves overall score on gender equality • Survey ranks S'pore as world's No.2 best place to do business • Business sentiment among manufacturers improves for next 6 months: EDB • Environmental Front • At Social Front 38 • 1,500 more places allocated to Singapore for Haj season


• Singapore to receive first batch of H1N1 vaccine in 2 weeks Vietnam

• Political Front • Foreign Relations 39 • Vietnam, Cambodia discuss security, extradition pacts • Geo-strategic front • Economic Front 39 • Sri Lanka, Vietnam boost trade • Vietnam launches biofuel crop project boost • Pace of Vietnamese inflation slackens • Social Front 42 • Dengue outbreaks affecting the Philippines, Vietnam and India • US helps Vietnamese disaster victims • Environmental Front

Cambodia • Political Front 44 • Thailand-Cambodia Dispute Overshadows Summit • Foreign Relations 45 • FM: Cambodia, India to strengthen defense, anti-terrorism co-op • Cambodia will not extradite Thaksin on Thailand’s request • Cambodia becomes permanent member of World Heritage Committee • Economic Front 47 • Expanding Economic Horizons • Korea offers Cambodia more development aid • Social Front • Environmental Front 49 • Cambodia vows to crack down on safety violations by factory owners. • Typhoon warning for Cambodia and Vietnam

Laos

• Political Front 51 • Development of ASEAN civil service agreement expects to be signed • Foreign Relations 51 • Laos and China cooperates on human resource development • Laos, Vietnam achieve in Nam Kanh border demarcation • Economic Front 52 • China-ASEAN Free Trade Area to Set Example for Global Co-operation • At Social Front • private company further donates relief fund to flood victims

Brunei

• At political Front • At Economic Front 53


• Brunei Meat Exports Via Halal Brand Probable • Banks to publish true cost of financing • Greater transparency sought from TAP • At Social Front • At environmental Front 57 • Economics Of Climate Change Forum

Summary At political Front

• Indonesia Ben Anderson's The Idea of Power in Javanese Culture once was a very popular

analytical tool to explain modern Indonesian politics. In this regard, Soeharto's New Order government often served as the most favorite text and context. This is perhaps due to the fact that Soeharto was a politician who preserved and developed his power through, among other thing, spiritual endeavors. He was known to perform a certain spiritual purification ritual which affected his dealing with power. Power was therefore seen not only as a mundane or profane matter, but something which contained spiritual elements.

• Malaysia The split in PAS is very serious but Umno is still open to possible Malay and Muslim

unity talks with the party.Prime Minister Datuk Seri Najib Tun Razak however said it would be difficult to have formal talks if PAS was split. “So as long as PAS is not able to reach consensus, it will be difficult to hold talks with the party,” Najib told Malaysian journalists after attending the East Asia Summit here yesterday.PAS spiritual leader Datuk Nik Abdul Aziz Nik Mat had called for a special muktamar to rid the party of several problematic leaders including deputy president Nasharuddin Mat Isa and secretary-general Datuk Mustafa Ali.

• Thailand The prolonged domestic political crisis in Thailand is now taking on a new shape, with neighbouring countries being sucked into the conflict between rival parties. Just days after the leaders of Cambodia and Thailand clashed over treatment of ousted Prime Minister Thaksin Shinawatra that overshadowed the 15th Asean Summit in Hua Hin, other developments connected to Thaksin had somewhat brought Thailand's neighbours into the spotlight. An uncharacteristically edgy summit of the Association of Southeast Asian Nations (Asean) threatened to boil over yesterday as Thai-Cambodian relations took another turn for the worse. A visibly exasperated Thai Prime Minister Abhisit Vejjjiva hit back at his Cambodian counterpart Hun Sen, calling him “seriously misinformed” over the latter’s remarks comparing fugitive former Thai PM Thaksin Shinawatra with


Burmese pro-democracy leader Aung San Suu Kyi.Hun Sen had earlier offered Thaksin, who was deposed in a 2006 coup, a job as an economics advisor and said that if the exiled media mogul chose to come to Cambodia, he would not face extradition to Thailand to face corruption charges.

• Cambodia An uncharacteristically edgy summit of the Association of Southeast Asian Nations

(Asean) threatened to boil over yesterday as Thai-Cambodian relations took another turn for the worse. A visibly exasperated Thai Prime Minister Abhisit Vejjjiva hit back at his Cambodian counterpart Hun Sen, calling him “seriously misinformed” over the latter’s remarks comparing fugitive former Thai PM Thaksin Shinawatra with Burmese pro-democracy leader Aung San Suu Kyi.Hun Sen had earlier offered Thaksin, who was deposed in a 2006 coup, a job as an economics advisor and said that if the exiled media mogul chose to come to Cambodia, he would not face extradition to Thailand to face corruption charges. Cambodia will not extradite former Thai Prime Minister Thaksin Sinawatra based on a request made by the Thai government, the Cambodian government has said.

“The Royal Government of Cambodia likes to make it clear about its position that Cambodia will not extradite Thaksin on any request made by the Thai government if he decides to stay in the kingdom of Cambodia,” said a government statement issued on October 23.The Cambodian government’s statement comes a day after Thailand warned that it would request Cambodia to send Thaksin back to Thailand to serve his two-year jail term if he visits the country. At Foreign Relations Front At Geo Strategic Somali pirates on two skiffs have attacked and boarded a Thai-flagged fishing vessel north of the Seychelles and off the coast of Somalia, the European Union Naval Force says.The pirates were seen aboard the Thai Union 3 yesterday from a patrol aircraft when it was 370 kilometres north of the Seychelles, a statement on the force's website said. At Economic Front

• Indonesia Indonesian consumer confidence has seen a steady increase over the last six months.

Fuelled by optimism about the future, the Consumer Confidence Index by InsightAsia increased 8 points from 97 to 105, rising above the neutral point of 100. InsightAsia, one of Asia Pacific's leading market research groups - specializing in quantitative, qualitative research, brand development, business analytics and consultancy - surveys 9,200 people across five Asian countries on a yearly basis to produce.

Indonesia's President picked a strong team of technocrats to handle economic policy in his new cabinet but could have placed more professionals in other posts to accelerate reform, investors said on Thursday. President Susilo Bambang Yudhoyono, sworn in for a second, five-year term this week, appointed a mix of pro-reform technocrats as well as several political allies who lack reform credentials to his cabinet, announced late on Wednesday night. Indonesia expects remittances from its overseas workers to rise to around $10 billion next year as the global economy improves, the head of a state agency in charge of migrant workers told Reuters on Friday.

• Malaysia


Malaysia hopes that Muslim countries can agree on which goods and products are halal, or acceptable to Muslims, a move that would boost the $2 trillion industry, although politics and interpretation of islamic law may complicate the task. The Organisation of the Islamic Conference (OIC) is working on a single standard to be applied in its 57 member countries. Agreement to regulate the halal industry, which ranges from financial institutions to cosmetics and meat, would help trade and speed up the certification for makers of halal products."Malaysia's halal certification is recognised worldwide so perhaps we can play an important role in creating a global standard," Malaysia's religious affairs minister Jamil Khir Baharom said in an interview on Thursday. "We need a halal certification that everyone can use easily." Malaysia’s central bank refrained from raising interest rates, opting to keep borrowing costs at a record low to support a nascent economic recovery as the government prepares to cut spending to trim its budget deficit. Bank Negara Malaysia maintained its overnight policy rate at 2 percent for a fifth straight meeting yesterday, it said in a statement in Kuala Lumpur. The decision was predicted by all 21 economists surveyed by Bloomberg News. The benchmark is at its lowest level since it was introduced in April 2004. Malaysia hopes the signing of the Free Trade Agreement (FTA) with New Zealand will encourage more companies there to view Malaysia as a suitable investment hub and gateway to the Asean market, said Prime Minister Datuk Seri Najib Tun Razak. He said the signing yesterday was the highlight of New Zealand Prime Minister John Key’s short visit to Malaysia, marking a significant milestone in the trade links between the two countries. HUA HIN, Thailand: Prime Minister Lee Hsien Loong has warned that ASEAN risks becoming marginalised if it does not stay relevant. Speaking during the ASEAN leaders retreat on Saturday morning, he said it was vital for the grouping to strengthen cooperation, deepen integration and enable all its member countries to develop and prosper.

• Singapore As the global economy recovers, Singapore's economic landscape must continue to evolve if it wants to stay ahead of the competition. Academics and private sector economists at the Singapore Policy Forum on Tuesday said that this should include building a stronger base of local enterprises, as well as focusing more on the services sector rather than manufacturing.

The Economic Development Board (EDB) said business sentiment among manufacturers here has improved. Data from its latest Business Expectations Survey showed a weighted 22 per cent of firms predict an improvement in the business conditions in the next six months compared with 16 per cent last quarter.

• Vietnam US$ 100 m target set for two-way trade volume by 2012: President Mahinda Rajapaksa and Vietnamese President Nguyen agreed to encourage bilateral trade and set the target of US$ 100 million for two-way trade volume by 2012. President Rajapaksa who was on a State visit to the Socialist Republic of Vietnam from October 22 to 24 also discussed a range of matters of mutual interest which included trade and investment promotion, agriculture, cultural cooperation, air services and


defence and transnational crime prevention with President Nguyen. President Rajapaksa undertook the State visit at the invitation of Vietnamese President Nguyen Minh Triet. Lanka-Vietnam agreements

• Laos

The China-ASEAN Free Trade Area (CAFTA), to be established on Jan. 1, 2010, will set a good example for global cooperation, Lao Prime Minister Bouasone Bouphavanh said on Tuesday, 20 October.China and ASEAN have established strategic partnership, and it will attract much attention from the whole world, Bouasone said on the sideline of the 6th China-ASEAN Expo held from Oct. 20 to 24 in Nanning, capital of south Chinas Guangxi Zhuang Autonomous Region.ASEAN - the Association of Southeast Asian Nations, is a regional cooperation group founded in 1967. It groups Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam, with a total area of 4.5 million square kilometres.

• Brunei

Ghanim International Food Corp Sdn Bhd is keeping its doors open to the possibility of helping domestic poultry producers export their goods to Singapore using the premium Brunei Halal brand. In an interview with The Brunei Times yesterday, Noel Shield, Ghanim interim chief executive, said: "Poultry and fresh meat products are definitely a part of the products on the list of products to be included in the Brunei Halal brand for sure; however it will depend on what the market wants and needs." Ghanim International is the company appointed by His Majesty's Government to oversee the Brunei Halal brand. At Social front

• Singapore The Saudi Haj Authority has allocated an additional 1,500 places to Singapore for the coming Haj season. This brings the total number of places available for Singapore this year to 2,180 – the same as last year. The Islamic Religious Council of Singapore (MUIS) had earlier requested for 4,000 places for Singaporean Muslims to go on a pilgrimage to the holy city of Mecca, which is part of a religious tradition.

• Philippine Police may charge four or five people suspected of spreading rumours about the health of the country's 81-year-old king that triggered a slide in Thailand's stock market, a senior police officer said on Thursday. Thai stocks .SETI plunged a combined 7.2 percent on Oct. 14-15 as rumours circulated over the health of King Bhumibol Adulyadej, although they rebounded 3.5 percent the following day.


Detailed News Monitoring Report

Summary Indonesia

• Political front: • SBY and the future of the presidency

Ben Anderson's The Idea of Power in Javanese Culture once was a very popular analytical tool to explain modern Indonesian politics. In this regard, Soeharto's New Order government often served as the most favorite text and context. This is perhaps due to the fact that Soeharto was a politician who preserved and developed his power through, among other thing, spiritual endeavors. He was known to perform a certain spiritual purification ritual which affected his dealing with power. Power was therefore seen not only as a mundane or profane matter, but something which contained spiritual elements. Today, Anderson's analysis may no longer be relevant. Observers rarely use it as an analytical armory. But the chaotic transfers of power in 1998-2001 - reminiscent of the sorrowful events surrounding the transfer of power from Sukarno to Soeharto in 1966 - encouraged many to take into account the intangible or immaterial aspects of politics that may steer the course of Indonesia's political development. Many may not realize it, but when Megawati Soekarnoputri lost her bid for another presidential term to Susilo Bambang Yudhoyono in the 2004 elections, some observers could not restrain themselves from raising the question why was it that in the end, the fate of all presidents was always surrounded by unpleasant circumstances? Of course, as all the available scholarly works have indicated, this is something that can be explained rationally. Interplay between the economy and politics, which may involve domestic as well as international actors, is sufficient to provide an explanation of some kind.


Still, however, one can be easily intrigued by questions such as, why all? Were they all that bad when entrusted with the enormous power to manage the country? The answer is, of course, no. Sukarno was a person who spent all his adult life in the service of Indonesia's wellbeing. Not only that, he was the country's first president, but long before that, he was the most notable of the avant-garde to wage the archipelago's sense of nationalism to fight colonialism and bring Indonesia to independence. But in the end, only bitterness colored his life, even as a common citizen: He was implicated, directly or otherwise, with the 1965 failed coup, his power was stripped off him by the People's Consultative Assembly (MPR), he was put under house arrest - unable to communicate with the outside world. His successor, Soeharto, was more or less the same. That is, in the sense that, like Sukarno, Soeharto also dedicated his adult life for the betterment of Indonesia. For years he was in the military service, responsible, among other things, in making West Irian part of Indonesia' unitary state. For more than three decades he served as Indonesia's longest president, which enabled him to develop the country's economy. And yet his final years were severely unpleasant: being charged with corruption, tried, and, sadly, only his declining health saved him from undergoing further trials. B.J. Habibie did not suffer the humiliation experienced by Sukarno and Soeharto. But in the end, his devotion to Indonesia's technological and industrial development, his obsession to make the country a modern state in its truest sense, was met by the fact that his leadership was politically unwanted. His very short term in office was a relative success, but in the MPR meeting in 1999, his accountability speech was narrowly rejected. Abdurrahman Wahid's presidency was full of controversies. At the beginning of his presidency, hopes ran high - regardless of his physical limitations. He was considered as the only person who could heal the country and unite the fragmented elites. Poor political judgment on his part made him the second president ever to be impeached by the MPR. After less than two full years in office his presidency was nullified and handed over by the MPR to Megawati. Megawati did not experience political bitterness like Sukarno, Soeharto, or Wahid. But she was defeated twice, once by her minister, Yudhoyono. The latter beat her fairly and squarely in the 2004 and 2009 presidential elections - something that is normal in politics. But for some reason, and only the two know exactly why, since then their relationship has gone sour. These sad realities, especially in the course of the transfer of power from one president to the other, has encouraged many to see the power interplay in the light of the intangible aspect of politics. One speculation was that perhaps the timing of the birth of an independent Indonesia was not correct. Therefore, the country is in great need of being spiritually healed (ruwat). Of course, one need not take such speculation seriously. Muslims in particular would have a different perception with regard to the date of birth of the Republic of Indonesia. The country's independence was proclaimed on Friday, Aug. 17, 1945. This coincided with the holy month of Ramadan - a period when Muslims are obliged to fast. How could such time be considered as inappropriate for the declaration of independence of the Republic? What needs to be emphasized here is not whether the country requires some kind of spiritual energizing so that it will move in tandem with the cosmic law of nature. What is important is that the cycle of unpleasant circumstances, or perhaps even political destinies, experienced by all of our former presidents, be broken.


Yudhoyono has the chance to break that cycle. He has been able to avoid the cycle during his first term in office. Nobody knows what will happen to the second term of his presidency - something that resembled the experiences of both Sukarno and Soeharto where they could not predict what might happen, after the former being crowned as the president for life and the latter being the father of development. I think Yudhoyono will be able to break the cycle provided that he works solely for the interests of the people. In that respect, he should prioritize his agenda for the next five years. Three of his top agenda items seem to match with the public demands - economic development; democratic politics and law enforcement. What remains to be seen is whether his Cabinet members are able to understand those issues and put them in the context of policies that serve the interests of the people. Otherwise, history is waiting to repeat itself. The writer is the dean of the Faculty of Social and Political Sciences, State Islamic University (UIN) Jakarta

• Geo-strategic Front • Economic Front • Indonesian consumers more optimistic about the future

Indonesian consumer confidence has seen a steady increase over the last six months. Fuelled by optimism about the future, the Consumer Confidence Index by InsightAsia increased 8 points from 97 to 105, rising above the neutral point of 100. InsightAsia, one of Asia Pacific's leading market research groups - specializing in quantitative, qualitative research, brand development, business analytics and consultancy - surveys 9,200 people across five Asian countries on a yearly basis to produce The Asian Consumer Confidence Index. Consumers in Indonesia are very optimistic about the future of both the economy and their financial well-being. This optimism has become stronger since the second quarter. Nevertheless the feeling about the current state of the economy and current financial well-being is somewhat negative; consumers still think that this is a bad time to purchase major household products, although the perception of financial well-being is less negative than earlier in the year. The GDP growth of 4 percent in the second quarter was the lowest in six years and the government expects a similar number for the third quarter. Consumers are slightly negative about the current state of the economy. The perception of current financial well-being has improved, though the overall feeling is still somewhat negative. The index of current financial well-being has increased over the last three quarters from 71 to 78 to 89, a steady upward trend. Despite the less positive view of the current economy, consumers have become increasingly optimistic about the future of the economy. Most are confident that the economy will recover throughout the next 12 months. The index that reflects the outlook of the economy has moved up from 108 in the first quarter to 128 in the second and 142 in the third quarter. A more optimistic outlook is also found in recent predictions by the Ministry of Finance and Bank Indonesia. Both increased their full year growth forecast from 3.5-4.0 percent to 4.0-4.5 percent. The World Bank shares this optimism, naming their recent report about the Indonesian economy *Clearing Skies'. The positive news has boosted consumer morale. 67 percent of the surveyed Indonesians think that unemployment will decrease in the next 12 months. The outlook of financial well-being has also increased. The index increased from 126 to 154. 67 percent of surveyed consumers believe their financial well-being will get better in the next 12 months. In the first half of the year the confidence of Indonesian workers in


their ability to keep their job and increase their income has remained strong. Now that the signs of economic recovery have become stronger, this confidence has increased further. Despite the increased optimism about the future, consumers are still reluctant to do major purchases. The index that expresses this decreased from 52 to 45. 67 percent of the respondents indicated that this is a bad time to buy major household products. The Indonesian economy relies heavily on domestic consumption. This makes consumer confidence a key factor in economic development. Therefore the continued increase of the Consumer Confidence Index is a positive sign for the Indonesian economy, which is expected by the government to grow by 5.5 percent in 2010. But even though consumer confidence rose above the neutral level, satisfaction with current financial-well being and particularly the willingness to do major purchases is still low. If these aspects will improve in the coming months, economic growth could be accelerated. The third quarter measurement of consumer confidence in Indonesia took place in the first two weeks of September. The survey asks questions to 500 consumers in Jakarta, Surabaya and Medan regarding the economy and their financial well-being. The Consumer Confidence Index is based on consumers' opinions about the present state of the economy, the outlook of the economy, the current status of their financial well-being, the outlook of their financial well-being and willingness to buy major household items.

• economic policy Indonesia's President picked a strong team of technocrats to handle economic policy in his new cabinet but could have placed more professionals in other posts to accelerate reform, investors said on Thursday. President Susilo Bambang Yudhoyono, sworn in for a second, five-year term this week, appointed a mix of pro-reform technocrats as well as several political allies who lack reform credentials to his cabinet, announced late on Wednesday night. But many had hoped the president would take advantage of a strong mandate in this year's election to appoint more young professionals and technocrats who could inject fresh blood into policy-making. Although Yudhoyono needs support from other parties for a parliamentary majority, critics noted appointing senior politicians from coalition members in his first term had not always guaranteed legislative support, while some of the ministers had proved to be loose cannons.Yudhoyono "has avoided taking too many risks and in doing so, has disappointingly missed some obvious opportunities for institutional reform," said James Bryson, who runs investment firm HB Capital. "However the macro-economic direction will remain on course, and that is clearly a necessary condition for foreign investors." In Thursday morning trade the rupiah currency, which has steadily strengthened against the dollar this year, inched lower to 9,465 per dollar, while Indonesian stocks, which have climbed more than 80 percent since January, lost 1 percent. However, that was largely in line with regional trends rather than disappointment over the economic team, which was in line with expectations and includes Finance Minister Sri Mulyani Indrawati and Trade Minister Mari Pangestu, two economists who have raised the profile of Indonesia, a Group of 20 (G20) member. OBSTACLES TO GROWTH


Both have worked closely in the past with Yudhoyono's new vice president, Boediono, whose focus is on fixing the main obstacles to faster growth including poor infrastructure and bloated bureaucracy. However, even the economic team is something of a mixed bag. For example, Yudhoyono named a little-known politician from his own party, Darwin Saleh, as energy and mining minister. Investors had hoped for a big shake-up of this key ministry given Indonesia's failure to attract billions of dollars in investment for the oil, gas and mining sectors in recent years. Hatta Rajasa, one of the president's trusted aides and a politician with little economic experience, was appointed Co-ordinating Minister for the Economy. M.S. Hidayat, who heads the Indonesian Chamber of Commerce and Industry which represents the country's powerful tycoons and business interests, will be Industry Minister. Hidayat is a member of the Golkar Party, led by controversial businessman and politician Aburizal Bakrie. On the plus side, widely respected technocrat Kuntoro Mangkusubroto will head a new, presidential delivery unit to drive reform of the civil service and the judiciary, and push through infrastructure projects. Investors frequently cite corruption, red tape, legal uncertainty and shoddy infrastructure as the main deterrents to investment in Indonesia. But those are areas where cabinet members other than the economic team have considerable influence, and where analysts say more technocrats as ministers could have helped ensure changes. "(Kuntoro's) type of unit is highly promising in that it is precisely what the government needs to break through the deadlock that hampers investment, specifically bureaucratic structures, but it has no power in and of itself," said Kevin O'Rourke, a political risk analyst. "The idea is that everyone has to follow what the head of the unit says, but without the backing of the president, the various ministers and the department heads and agency heads can afford to ignore it," he said. Marcus Mietzner, an expert on Indonesian politics and lecturer at the Australian National University, saw hope for the new cabinet despite some shortcomings. "It's not a spectacular cabinet, there's lots of familiar faces from the political elite and from the political parties that he had to accommodate," he said."Yudhoyono has appointed his friends, people he trusts. He will have (Vice President) Boediono defining and hammering out economic policies and hand them over to (Co-Ordinating Minister) Hatta for implementation. That will work reasonably well because Hatta doesn't have economic ambitions himself so he will just implement them."

• Indonesia sees rebound in 2010 worker remittances Indonesia expects remittances from its overseas workers to rise to around $10 billion next year as the global economy improves, the head of a state agency in charge of migrant workers told Reuters on Friday. The head of the agency, Jumhur Hidayat, had said in February 2009 remittances could drop by 5-10 percent from an estimated $8.2 billion in 2008 due to the global crisis, "We expect remittances from about six million Indonesian worker to reach around $10 billion next year," Hidayat said.


He did not provide a figure for this year's remittances, although based on his estimate in February the figure could be $7.4-$7.8 billion. A recovery in the global economy should increase the number of migrant workers going to other countries, said Hidayat. The official said that the number of Indonesian workers going to South Korea, for example, had fallen to 3,000 this year from 12,000 in 2008, but that figure could rebound to around last year's figure in 2010. Some analysts and policy makers argue that the government should seek to increase the number of Indonesian workers earning abroad so that their currency remittances help reduce the volatility in the Indonesian rupiah.

• Social front • Questions over Indonesia asylum deal

The opposition will use the resumption of parliament today to press Labor about a deal with the Indonesian government on asylum seekers.The coalition claims the government has outsourced its border protection "policy failure" to the Indonesians. Deputy opposition leader Julie Bishop says taxpayers have the right to know how much the government's bid to stave off illegal people smuggling is costing. Prime Minister Kevin Rudd, who had discussions with other regional leaders at the East Asia Summit in Thailand at the weekend, is expected to be the focus of opposition attention during question time.

• Environmental Front • Indonesia may get $400 million from Japan to combat warming

HUA HIN, Thailand (Kyodo) Prime Minister Yukio Hatoyama said Sunday his administration is considering offering Indonesia a yen loan worth $400 million to help it address climate change, a senior Japanese official said.If implemented, it would be the first such arrangement as part of the "Hatoyama Initiative," under which Japan will provide financial and technical assistance to developing countries in fighting climate change. "I would like the yen loan to be used for measures to tackle climate change, and hopefully it would be used in a measurable and verifiable manner," Hatoyama was quoted as telling Indonesian President Susilo Bambang Yudhoyono when they met on the sidelines of ASEAN-related summits.Hatoyama also said Japan will "spare no effort to offer technical support," such as assistance for improving energy efficiency.Yudhoyono thanked Hatoyama for the offer while noting that Indonesia is working to reduce carbon dioxide emissions and would also like to address deforestation.Hatoyama revealed his initiative at a U.N. climate change summit in September. Malaysia

• Political Front • Najib: We’re still ready to talk with PAS

The split in PAS is very serious but Umno is still open to possible Malay and Muslim unity talks with the party.Prime Minister Datuk Seri Najib Tun Razak however said it would be difficult to have formal talks if PAS was split. “So as long as PAS is not able to reach consensus, it will be difficult to hold talks with the party,” Najib told Malaysian journalists after attending the East Asia Summit here yesterday.PAS spiritual leader Datuk Nik Abdul Aziz Nik Mat had called for a special


muktamar to rid the party of several problematic leaders including deputy president Nasharuddin Mat Isa and secretary-general Datuk Mustafa Ali. Asked if he was hurt at Nik Aziz’s refusal to have anything to do with Umno, Najib who is Umno president replied: “There are two groups in the party — one that is more political while the other is more sincere to work for the ummah.”He said there were some in PAS who acknowledged Umno’s contribution towards the Malays and Muslims and there were also others who were only interested in politics and ignored what Umno had done.“We are grateful that there are people who appreciate that Umno represents the Malays and Muslims. Umno has done a lot in terms of Islam and fighting for the rights of Malays and other races,” he added.In Putrajaya, Umno deputy president Tan Sri Muhyiddin Yassin said Nik Aziz’s call for the special muktamar was less about his objection to the proposed unity talks but more about ousting leaders who he felt were not aligned to him. “I think there is more to it than the issue of unity talks. There are differences of opinions among their leaders possibly due to other factors so there seems to be a clear split. “When Nik Abdul Aziz made the call for an EGM which is a clear step to remove sections that are not aligned to him, is that on the basis to reject the unity talks?” he said after attending the finals and prize giving ceremony of the RHB-The Star Mighty Minds 2009 competition here yesterday.Umno, he said, never dictated terms and was willing to work together with any party, not just PAS as its main concern was always the religion, the race and the country. “Umno is a party for all. That is why we have amended the constitution to make it easier for anyone to become members,” he added.In Kota Kinabalu, Umno vice-president Datuk Mohd Shafie Apdal said whatever problems facing PAS at the moment was due to the attitude of PAS leaders themselves. Umno, he said, had nothing to do with the latest leadership rift in PAS.“Umno is not bothered whether the EGM takes place or not. Our focus is working for the people.“The leadership problems in PAS shows the party is not even near ready to lead the country. How can they unite the people when there is disunity among themselves.”

• Malaysia's Pakatan Rakyat faces problems Prime Minister Najib Razak has been grappling with problems faced by parties in his ruling Barisan Nasional coalition. But he is not alone, as the opposition Pakatan Rakyat alliance is not faring any better. Its leader, Anwar Ibrahim, and his party PKR, are seen to be losing control. One of his lawmakers in the opposition-controlled state of Selangor left the alliance, citing loss of faith in his leadership. In addition, there was a revolt over the appointment of a new PKR leader in the East Malaysian state of Sabah. Some blame the ruling party, UMNO, for Pakatan's rising problems. "There's an attempt by UMNO to destabalise Pakatan Rakyat. This is one way to achieve their objective," said Azmin Ali, vice-president, PKR. Others dismiss the recent events as nothing more than growing pains. "There is always problem whenever we want to grow. We are now managing our success," said Tian Chua, information chief, PKR. The more cohesive opposition Islamist party, PAS, has not been spared from strife. Infighting has prompted the party's spiritual leader to call for an EGM to rid those in favour of forging a unity government with UMNO. At a central committee meeting, the PAS president said talks with UMNO will end, and the party will instead focus on strengthening the opposition alliance. "We have


decided to put an end to all talks on unity government and remain with the opposition alliance," said Abdul Hadi Awang, president, PAS. PAS vowed to take disciplinary action against problematic leaders, but not everyone is deterred by that threat. "I have been appointed or elected as deputy president with an overwhelming majority, the members speak for themselves, the results of the muktamar speaks for themselves," said Nasharuddin Mat Isa, deputy president, PAS. Many feel that the infighting and the politicking are not going to go away anytime soon. But party veterans are calling on all sides to look beyond their differences, and reach for the common goal of capturing Putrajaya. "The election could be held as early as 2011. Otherwise, we will not be ready for it. Pakatan is still intact. There are differences even in DAP itself. I hope these differences will be ironed out before the election," said Karpal Singh, chairman, DAP. Malaysians will be watching with keen interest as both sides of the political divide race against time to win their trust and support before the next general election that must be held before 2013.

• Foreign Relations • Economic Front • Malaysia hopes that Muslim countries can agree on which goods and

products are halal, Malaysia hopes that Muslim countries can agree on which goods and products are halal, or acceptable to Muslims, a move that would boost the $2 trillion industry, although politics and interpretation of islamic law may complicate the task. The Organisation of the Islamic Conference (OIC) is working on a single standard to be applied in its 57 member countries. Agreement to regulate the halal industry, which ranges from financial institutions to cosmetics and meat, would help trade and speed up the certification for makers of halal products."Malaysia's halal certification is recognised worldwide so perhaps we can play an important role in creating a global standard," Malaysia's religious affairs minister Jamil Khir Baharom said in an interview on Thursday. "We need a halal certification that everyone can use easily." The halal industry is based on a belief that Muslims should eat food and use goods such as cosmetics that are 'halalan toyibban', which means permissible and wholesome.But Muslim jurists do not always agree on what is halal. Islam prohibits the consumption of pork and prescribes how animals must be slaughtered, but there has been debate on the acceptability of non-alcoholic beer, collagen and vinegar.Rules are interpreted and enforced more strictly in some countries. Sudanese authorities have hauled up women for wearing trousers and a Malaysian woman has been sentenced to a beating for drinking beer, practices which are acceptable in some Muslim countries.Jamil said Muslims generally agree on what is halal although some issues should be left to countries to decide. "In general, we don't have many differences in terms of products and food." Some see politics as an obstacle as OIC members range from wealthy Saudi Arabia to poor countries like Somalia."Disagreement within the OIC is due to certain interests of certain countries," said Mohamad Akram Laldin, a religious scholar and legal expert. "Some people might have their own agenda and that might be the hindrance. They might want to push certain things from their view and not agree with others' views."

• Malaysia Refrains From Rate Increase to Spur Recovery


Malaysia’s central bank refrained from raising interest rates, opting to keep borrowing costs at a record low to support a nascent economic recovery as the government prepares to cut spending to trim its budget deficit. Bank Negara Malaysia maintained its overnight policy rate at 2 percent for a fifth straight meeting yesterday, it said in a statement in Kuala Lumpur. The decision was predicted by all 21 economists surveyed by Bloomberg News. The benchmark is at its lowest level since it was introduced in April 2004. “The international economic and financial conditions have improved further,” the central bank said. “Notwithstanding these improvements, the outlook for the global economy continues to be uncertain, with recovery likely to be slow and uneven in view of the ongoing adjustments.” Asian policy makers from India to South Korea have begun to signal they may be prepared to raise interest rates as inflation returns with economic recovery. Malaysia has less reason to follow Australia’s Oct. 6 move to increase borrowing costs anytime soon because consumer prices are declining and the nation is still in a recession, economists say. “Malaysia could be amongst the last to raise rates in Asia,” said Kit Wei Zheng, a Singapore-based economist at Citigroup Inc. who expects Bank Negara to increase borrowing costs in the fourth quarter of next year. “With policy needing to stay accommodative to offset the fiscal tightening implied by a smaller deficit, the risk is that rates are kept low for longer.” Policy ‘Appropriate’ The central bank said yesterday its current monetary policy stance is “appropriate” to support growth because price pressures should remain “contained” as the economy improves. The ringgit fell for a third day to 3.4450 a dollar as at 9:01 a.m. today, its lowest level in more than three weeks, and Malaysia’s benchmark stock index slid a second day as concern a global economic recovery is faltering hurt demand for emerging- market assets. Confidence among U.S. consumers declined for a second month in October, a report showed earlier this week. “Bank Negara still views growth concerns as the greater risk to macroeconomic stability,” said Matt Hildebrandt, an economist at JPMorgan Chase & Co. in Singapore. Inflation is “muted” and “uncertainties about the growth outlook are still high,” he said. The government expects Malaysia’s $195 billion economy to expand between 2 percent and 3 percent in 2010 after shrinking 3 percent this year, helped by a recovery in demand for Malaysian Pacific Industries Bhd. semiconductors, IOI Corp. palm oil and other exports. Budget Deficit Prime Minister Najib Razak plans to narrow the budget shortfall to 5.6 percent of gross domestic product next year, reducing spending after stimulus measures to revive economic growth pushed the deficit to a 22-year high of 7.4 percent of GDP in 2009. Malaysia will probably lag behind South Korea and India in raising interest rates because the Southeast Asian nation’s economic recovery isn’t as strong as the other two countries’, said Vishnu Varathan, an economist at Forecast Singapore Pte. India’s central bank, which expects Asia’s third-largest economy to expand 6 percent in the year through March 31, on Oct. 27 ordered lenders to keep more cash in government bonds as it raised its inflation forecast. The move followed Australia’s decision on Oct. 6 to raise its benchmark rate to 3.25 percent from a 49-year low of 3 percent. South Korea, India


South Korea’s economy expanded 2.9 percent in the third quarter from three months earlier, the fastest pace in seven years, and Bank of Korea Governor Lee Seong Tae said Oct. 23 that keeping rates at a record low may not be healthy. Malaysia’s economy, Southeast Asia’s third largest, shrank in the first two quarters of this year and the government doesn’t expect growth to resume until the final three months. Neighboring Singapore emerged from its recession in the second quarter and Indonesia and the Philippines have avoided economic contraction altogether. Governor Zeti Akhtar Aziz refrained from following other policy makers in raising interest rates last year when Malaysia’s inflation surged to as high as 8.5 percent amid soaring commodity costs, predicting that price gains would ease as world economic growth slowed. Consumer prices in Malaysia fell for a fourth straight month in September. The decline is expected to be “temporary,” the central bank said yesterday. ‘Subdued’ Inflation “Excluding further unanticipated price adjustments and external influences, inflation in 2010 is projected to be positive but remain subdued,” Bank Negara said. Interest-rate swaps signal the market is pricing in an eventual increase in borrowing costs in Malaysia in the second half of 2010, according to DBS Group Holdings Ltd., which cited the widening difference in yield, or spread, between the one- year swap rate and the Kuala Lumpur three-month interbank offered rate, or the Klibor. The one-year swap rate of 2.44 percent offered 28 basis points more than Klibor yesterday from 10 basis points on April 29, when Bank Negara ended its interest-rate cuts, according to data compiled by Bloomberg.

• Najib hopes FTA signing will encourage investments Malaysia hopes the signing of the Free Trade Agreement (FTA) with New Zealand will encourage more companies there to view Malaysia as a suitable investment hub and gateway to the Asean market, said Prime Minister Datuk Seri Najib Tun Razak. He said the signing yesterday was the highlight of New Zealand Prime Minister John Key’s short visit to Malaysia, marking a significant milestone in the trade links between the two countries. He said his discussions with Key touched on where the two countries stood in terms of economic relations, especially as trade between them had almost doubled between 2006 and 2008.Warm welcome: Najib greeting Key at his office in Putrajaya yesterday. — Bernama“Our bilateral trade in 2008 stood at RM6.15bil and although this year the numbers have fallen, we both believe it is a short-term phenomenon.“With the current global economic recovery, the total trade should be in an upswing in 2010 and beyond,” he said at a joint press conference with Key after their meeting at the Prime Minister’s office here yesterday.Najib said the two countries also had strong educational links and this was expected to be a key area to explore, along with tourism, which remained encouraging despite the economic downturn.Some 56,000 New Zealanders visited Malaysia last year.Meanwhile, Najib received a courtesy call yesterday from the first Malaysian to be awarded a scholarship by Harvard University.Tunku Dr Sharifah Elizah Cornelia Jamalullail, 29, was offered the scholarship under the auspices of the Mahadevan Travelling Fellowship at Harvard University, to undertake a study in psychiatry for one month.This will enable her to continue her studies at the Psychiatry


Department of the Massachusetts Hospital, recognised as the world’s best for 13 consecutive years.

• Social Front • The government has been spending measly amounts on flood

control(Philippian) The government has been spending measly amounts on flood control despite the fact that it more than doubled the public works budget since 2002, which experts have described as a failure to invest in infrastructure that could have at least mitigated the worst flooding in Metro Manila in 40 years. Analysis by a watchdog group showed that while the Department of Public Works and Highways (DPWH) budget ballooned to P129.89 billion this year from just P48 billion in 2002, funds for flood control were barely augmented and in fact went down in proportion to the total outlay.In 2002 the nationwide flood control budget was P5.34 billion, 11% of the total. This year it stood at P6.21 billion, not even 5% of the entire DPWH budget, figures from the Center for National Budget Legislation showed. This was even reduced by a tenth to just P4.5 billion in 2004 from P5.05 billion in 2003; by nearly 5% to P5.9 billion in 2006 from P6.2 billion in 2005, and by a fifth to P6.6 billion in 2008 from P8.2 billion in 2007.From 2002-2009, an aggregate P48 billion was allocated for flood control and drainage projects as well as various structures and facilities — including expenses for salaries, operations, and actual capital investment. "We’ve spent nearly P50 billion on flood control and the problem has even worsened. If in a matter of six hours flood waters have gone up, can you justify your performance? When you look around and see that drainage systems are clogged, we have to ask ’what happened to rehabilitation?’," said Joseph A. Rañola, president of the budget watchdog. The center’s analysis also showed a slowdown in foreign-funded flood control projects. After reaching a peak of P6.1 billion in 2007 from only P3.5 billion in 2002, these went back to P3.5 billion in 2008 and P3.4 billion this year. Even Metro Manila’s flood control budget — control of which was transferred by Malacañang to the Metropolitan Manila Development Authority (MMDA) from the DPWH in 2007 — has barely been augmented. The total went up by 4% to P329.6 million this year from P316.8 million, but money for "urgent disaster flood control works under the Pasig-San Juan-Marikina River System" was kept at just P50 million, while funds for flood control and drainage projects for Metro Manila were pared to P58 million from P61 million in 2008. The city of Manila has a yearly share of P12 million out of that budget, while that for other cities is much smaller: Marikina has P4 million while Pasig, Taguig, and Muntinlupa have just P2 million each."Everybody is talking about the problem but nobody is pointing to the solution to the problem, which is the budget," Mr. Rañola said. Sought for comment, MMDA Chairman Bayani F. Fernando claimed his agency’s appeals had been ignored. "Every year we ask for a higher budget for flood control projects. The problem is it is never given. We have to work with whatever amount is given to us." "For 2010, we are asking for around P2 billion for flood control projects in Metro Manila. We think that should be enough for the pumping stations needed in the area."The Arroyo administration did not really invest as much in public infrastructure despite repeated


policy pronouncements, said UP economist Benjamin E. Diokno, budget chief under the Estrada administration. "A big chunk of that measly budget for flood control went to the [Japanese-funded Caloocan-Malabon-Navotas-Valenzuela flood control and drainage system improvement project]. But that project was initiated and funded by the Estrada administration under the Obuchi Plan," he added, referring to the Japanese economic package for east Asia following the 1997 Asian financial crisis.Asked if the amounts allocated over the years meant that the government did not prioritize flood control, House appropriations committee chairman and Quirino Rep. Junie E. Cua said, "Not exactly." The focus, however, was on implementing President Gloria Macapagal-Arroyo’s roads, bridges and ports project.Mr. Cua added that the budget for capital outlay in 2010 had also decreased due to a need to maintain the deficit at a manageable level. Under the DPWH’s proposed flood control budget for 2010, money for actual projects was trimmed to P2.68 billion from this year’s P2.71 billion, although the agency’s total flood control project will go up by a tenth to P6.9 billion. Philippine

• Political Front • Foreign Relations • Economic Front • Philippines Says Talking with Thailand on Rice Deal

The Philippines, the world's biggest rice buyer, is currently in talks to purchase 200,000 tonnes rice from Thailand under a government-to-government (G-to-G) deal, a senior state official said on Monday. "The Philippines and Thailand are negotiating a certain volume for G-to-G," Agriculture Secretary Arthur Yap told reporters, adding the initial volume Manila was willing to grant Bangkok is 200,000 tonnes.On Sunday, Thai Commerce Minister Porntiva Nakasai said an agreement between Manila and Bangkok on rice import tariffs would be delayed by a month or two as negotiations continued.

• Social Front • Church in Philippines ready to negotiate for kidnapped priest's release

Church officials in the Philippines report that they expect to open negotiations immediately with the kidnappers who now hold Father Michael Sinnott, the Irish missionary who was seized on October 11. The kidnappers have made contact with Church officials, and Father Sinnott has been seen alive. But the health of the captive priest is a major concern, because Father Sinnott suffers from a heard condition and efforts to send his medication to the kidnappers have been unsuccessful.

• Thai police may make arrests over stock rumours Police may charge four or five people suspected of spreading rumours about the health of the country's 81-year-old king that triggered a slide in Thailand's stock market, a senior police officer said on Thursday. Thai stocks .SETI plunged a combined 7.2 percent on Oct. 14-15 as rumours circulated over the health of King Bhumibol Adulyadej, although they rebounded 3.5 percent the following day. Police Major General Panya Mamen, a deputy chief at the Central Investigation Bureau, told Reuters the police were focusing on four or five people who may have spread the rumours, which caused the biggest two-day drop this year on the bourse.


"We're now gathering all the evidence and next week the police will be applying for warrants from the Criminal Court," Panya said.The court could issue arrest warrants or may order the individuals to turn themselves in for questioning."These people will be charged with violating Article 14 of the 2007 Computer Offence Act covering the posting of false computerised information that causes harm to national security and the general public," he said.The health of the king is a sensitive topic in financial markets because he is seen as the sole unifying figure in a politically polarised country with a long history of coups and upheaval.Thai Prime Minister Abhisit Vejjajiva said he understood four people were involved. "Police have information on this issue and if the evidence is clear, they would likely have to proceed with the case," he told reporters.The king was admitted to hospital on Sept. 19 with a lung infection and fever and has been seen only once in public since then, on Friday, Oct. 23, when he visited royal monuments in the hospital.The Department of Special Investigation (DSI), which comes under the Justice Ministry, is also conducting an inquiry into possible stock trading irregularities, which it expects to complete in late November. DSI Secretary-General Tarit Pengdit told Reuters it had received information involving trading irregularities from the stock regulator on Monday and its Bureau of Financial and Banking Crime was now investigating."We're trying to get to the bottom of it. We hope we can conclude this case within 30 days. We want it to be fast because investors and the public are interested," he said.Finance Minister Korn Chatikavanij said on Wednesday he would meet with the Securities and Exchange Commission (SEC) and the Stock Exchange of Thailand (SET) on Nov. 2 to look at ways of managing volatility on the stock market. SET President Patareeya Benjapolchai said it was possible that the "circuit breaker" that triggers a half-hour halt in trading could kick in when the index falls 5 percent rather than 10 percent as at present.The SEC has said it was seeking trading information on two accounts from two foreign brokers, Credit Suisse in Hong Kong (CSGN.VX) and UBS in Singapore (UBSN.VX), in connection with this month's market plunge and was also looking at one domestic account. [

• Environmental front • 4 Luzon areas placed under storm alert

Four areas were placed under storm signal No. 1 as typhoon Santi (international name Mirinae) intensified as it continued its movement towards Central Luzon on Thursday, the Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA) reported.PAGASA said the storm was located 1,080 kilometers east of Casiguran, Aurora, packing center winds of 150 kilometers per hour and gusts of up to 185 kph. The storm was moving west toward Central Luzon at a speed of 26 kph, the bureau said.Storm signal No. 1 has been hoisted over Isabela, Aurora, northern part of Quezon and Polilio Islands."Santi" entered the Philippine territory on Wednesday night as a typhoon. It was expected to strengthen further as it moves closer to Luzon. The National Disaster Coordinating Council (NDCC) has placed all units in the central and northern parts of Luzon ahead of the typhoon's expected landfall on Saturday night.. Defense Secretary Gilberto Teodoro Jr., concurrent NDCC chairman, has advised the public to go to cemeteries a day before or after the storm passes for the annual observance of All Saints’ and All Souls’ Days.


Thailand • Political Front • Thai Political Crisis Drags In Asean Neighbours

The prolonged domestic political crisis in Thailand is now taking on a new shape, with neighbouring countries being sucked into the conflict between rival parties. Just days after the leaders of Cambodia and Thailand clashed over treatment of ousted Prime Minister Thaksin Shinawatra that overshadowed the 15th Asean Summit in Hua Hin, other developments connected to Thaksin had somewhat brought Thailand's neighbours into the spotlight. Surapong Towijakchaikul,a Pheu Thai member of parliament linked to Thaksin, made a claim that one of the Asean leaders had stayed in a house belonging to Thaksin while attending the summit. The Thai government did not deny or confirm the allegation. But government spokesman Panithan Watanayakorn told the local media that the host had prepared accommodation for all leaders, but it was up to them to decide on their private arrangements.The same leader was also said to have skipped the opening ceremony of the summit and the launching of the region's first human rights body, despite arriving in the seaside resort a day earlier.Foreign Minister Kasit Piromya had played down the particular leader's absence from the opening ceremony, saying that he needed to rest after his long visits to far away countries prior to the Hua Hin summit.Newly-elected Pheu Thai chairman and former prime minister Chavalit Yongchaiyudh also announced that he would visit Malaysia soon and planned to meet Malaysian leaders as well as travel to Myanmar. Last week, Chavalit's visit to Phonm Penh and his subsequent meeting with Cambodian Prime Minister Hun Sen caused consternation in Thailand when the latter alleged that Thaksin had been treated unfairly.Hun Sen also shocked the media here when he said that he would offer Thaksin the post of economic advisor to Cambodia. The infamous pro-government yellow shirt movement in Thailand has vowed to demonstrate in front of the Cambodian embassy here next week.Nattawut Saikua, a leader of the red-shirted anti-government United Front for Democracy against Dictatorship (UDD), said Chavalit's visit would help forge closer ties between Malaysia and Thailand."This visit is good for Thailand, especially in finding solutions to the southern Thai problem," he said. Thai Foreign Ministry's deputy spokesman, Thani Thongpakdi, said he believed that the Malaysian government would know that Chavalit's trip was a private one.Pheu Thai, formed late last year by Thaksin supporters after their previous People'sPower Party (PPP) was dissolved by the court for election fraud, has intensified its campaign to oust Prime Minister Abhisit Vejjajiva or at least force him to call for fresh elections. The red-shirted UDD plans to hold another rally in the capital probably next month after its planned concert in Khao Yai to raise funds for the movement.

• Abhisit backs south's autonomy THAILAND'S prime minister backed on Tuesday a suggestion by his Malaysian counterpart to grant autonomy to the insurgency-hit Thai south, as five more people were killed in the Muslim-majority region. Abhisit Vejjajiva said he would discuss the plan for the restive southern provinces on the Malaysian border when Malaysia's Prime Minister Najib Razak visits Thailand in December.Mr Razak said in a newspaper interview published on Monday that Thailand


should offer 'some form' of autonomy to the region, where more than 3,900 people have been killed since separatist violence erupted in January 2004.In response, Mr Abhisit said: 'That's the right approach. My government is working to make it materialise and in early December I and my Malaysian counterpart will visit the southern region.' Malaysia's Mr Razak told Thai English-language daily The Nation that 'you may not want to call it autonomy but there could at least be some form of involvement'. 'It is Thailand's decision to consider how far such autonomy in the deep south should go, and Malaysia, as a neighbour, would not intervene in the matter,' he was quoted as saying

• Geo Strategic Front. • Thai ship hijacked by pirates

Somali pirates on two skiffs have attacked and boarded a Thai-flagged fishing vessel north of the Seychelles and off the coast of Somalia, the European Union Naval Force says.The pirates were seen aboard the Thai Union 3 yesterday from a patrol aircraft when it was 370 kilometres north of the Seychelles, a statement on the force's website said. The fishing vessel appeared to be headed for the Somali coast.An EU naval force plane spotted the fishing boat and confirmed the pirates were on board. "Skiffs used by pirates have been sighted on board the fishing vessel," the force said in a statement. Thiraphong Chansiri, president of Thai Union Frozen Products Plc, the country's largest producer and exporter of canned and frozen seafood products, confirmed yesterday the Thai Union 3 seized by the Somali pirates was one of four vessels in its fleet north of the Seychelles.The four vessels account for only 5% of the group's total shipping capacity. Mr Thiraphong said damage was likely to be marginal, and an insurance firm would handle negotiations with the pirates and take care of any losses incurred. However, he was most concerned about the safety of the 25 crew members, none of whom are Thais. The Thai Union 3 is the third ship from Thailand seized in the area. Last year a Thai fishing vessel flying the Kiribati flag and the MV Thor Star owned by Thoresen Thai Agencies Plc were hijacked.The hijacking of the Thai vessel takes the number of ships now being held by pirates off the Somali coastline to eight, the EU force said. Pirates have plagued busy shipping lanes off the coast of Somalia for several years. Foreign warships from 16 nations are in the area to try and prevent hijacks, but the sea gangs now hunt for ships far into the Indian Ocean.

• Thailand-Cambodia Dispute Overshadows Summit An uncharacteristically edgy summit of the Association of Southeast Asian Nations (Asean) threatened to boil over yesterday as Thai-Cambodian relations took another turn for the worse. A visibly exasperated Thai Prime Minister Abhisit Vejjjiva hit back at his Cambodian counterpart Hun Sen, calling him “seriously misinformed” over the latter’s remarks comparing fugitive former Thai PM Thaksin Shinawatra with Burmese pro-democracy leader Aung San Suu Kyi.Hun Sen had earlier offered Thaksin, who was deposed in a 2006 coup, a job as an economics advisor and said that if the exiled media mogul chose to come to Cambodia, he would not face extradition to Thailand to face corruption charges. “Thaksin can stay in Cambodia as the guest of Cambodia and also be my guest as my adviser on our economy,” said Hun Sen. His remarks comparing the former Thai prime minister with Aung San Suu Kyi raised many eyebrows among summit delegates, as he attempted to capitalize on the


international media attention on Asean this weekend to highlight his view that Thaksin’s plight is politically driven. “Hun Sen’s comments are being seen as an attempt to intervene in Thailand’s precarious domestic political situation,” said Thitinan Pongsudhirak, the director of the Institute of Security and International Studies (Thailand) at Chulalongkorn University in Bangkok. Last week, Hun Sen gave a pointedly high-profile reception to former Thai prime minister and Thaksin ally Gen Chavalit Yongchaiyuth. Chavalit said “Mr Hun Sen is my old friend and I am visiting him at his invitation.” Last month, Cambodian opposition leader Sam Rainsy was in Bangkok, where he addressed the Foreign Correspondents’ Club of Thailand on press freedom in Cambodia. Rainsy slammed the Hun Sen administration, saying that it gives token assent to freedom of speech but uses state resources to hit critics with defamation suits, backed by a pro-government judiciary. Thitinan said he thinks that Hun Sen has taken umbrage at Rainsy using his time in Thailand to attack the Cambodian government. Speaking to The Irrawaddy on the sidelines of the Asean summit, Cambodian opposition MP San Cchay said that Hun Sen’s reaction shows that he does not understand how a liberal democracy works. “Just because Sam Rainsy talks in critical terms while in Thailand does not mean it has anything to do with the Thai government. Hun Sen merely betrays his own anti-democratic leanings with such an assumption,” he said. Yesterday, the anti-government and pro-Thaksin United Front for Democracy against Dictatorship (UDD) called on Asean to withdraw support for Abhisit as the bloc’s chairman. The UDD is seeking a royal pardon to enable Thaksin return to Thailand without having to face jail time on corruption charges. The UDD is also seeking a general election and deems the Abhisit government as illegitimate. Thaksin is regarded as the most popular yet divisive head of government in recent Thai history, implementing pro-poor policies and developing the northeastern Isaan region, but periodically clamping down on media, launching a draconian war on drugs and seeking a military solution to the southern Thailand Muslim rebellion. Interestingly, Hun Sen’s comparison of Thaksin’s situation to that of Suu Kyi comes as the Nobel Peace Prize laureate marks a total of 14 years in detention today. She was first arrested in July 1989, ahead of a landslide electoral victory by her party, the National League for Democracy, in May 1990. The comparison was made even as five Asean member states, including Cambodia, refused to allow NGO representatives other than those handpicked by the governments to attend a scheduled “civil society” meeting with regional heads of government. Nay Vanda of the Cambodian Human Rights and Development Association—selected by the Asean People’s Forum as his country’s representative at the meeting—said he was disappointed with the outcome.

• Foreign Relations • Economic Front • At Social Front

Singapore • Political Front • Foreign Relations • Economic Front


• PM Lee warns of marginalized ASEAN if it does not stay relevant HUA HIN, Thailand: Prime Minister Lee Hsien Loong has warned that ASEAN risks becoming marginalised if it does not stay relevant. Speaking during the ASEAN leaders retreat on Saturday morning, he said it was vital for the grouping to strengthen cooperation, deepen integration and enable all its member countries to develop and prosper. This is why ASEAN is pursuing the Connectivity Masterplan to enhance trade, investment and tourism development. Mr Lee added that ASEAN should also act in a coordinated manner internationally. He noted that it is good that the ASEAN Chair and the Secretary General were invited for the G20 meeting in addition to Indonesia as this gave ASEAN a precious seat at the deliberations. Mr Lee added that ASEAN must take part actively and constructively at the G20 to ensure that the grouping's interests are safeguarded.

• S'pore & India to launch second round of free trade review Singapore's free trade agreement with India, the Comprehensive Economic Cooperation Agreement, will undergo a second review. This was agreed upon by the prime ministers of the two countries, Singapore's Lee Hsien Loong and India's Manmohan Singh, during their bilateral meeting in Hua Hin on the sidelines of the East Asia summit. Mr Lee said the trade ministers of both countries had discussed the matter earlier and Dr Manmohan Singh supports the review of the agreement as this would further enhance ties between the two nations. The Singapore premier said the republic's relations with India are very good as both sides have close cooperation bilaterally. Singapore has also played a small part in helping India to become a dialogue partner with the ten-member ASEAN grouping.

• Singapore's manufacturing output falls 7.7% on-year in September Singapore's manufacturing output declined by 7.7 per cent on-year in September, snapping two straight months of growth. The pharmaceutical sector had worked like a magic pill, driving up Singapore's economy in the last two quarters. However, economists said the fourth quarter could be a different story given the volatility of the sector. Latest numbers showed that biomedical output fell 13.9 per cent in September, after almost doubling the previous month – making it one key reason for the decline in Singapore's manufacturing output. In the electronics sector, output declined by a marginal 1.1 per cent, and the total manufacturing output in the first nine months of this year contracted by 6.9 per cent from 2008. However, observers said the data is unlikely to set off a bearish outlook for Asian economies going forward. Mr Tai Hui, regional economist, Standard Chartered Bank said: "If you look at the data for Korea, China, Japan, etc, they are all on a gradually recovering path. So inventory restocking may have some influence over the coming months. "But don't forget the base effect from last year - where output and exports just collapsed in November and December. That is going to give Asian data a very huge boost in terms of year-on-year comparison. Economists added that the decline in Singapore's biomedical cluster masks the underlying improvement in other manufacturing sectors, like electronics and precision engineering segments. But it does not mean that there are no downside risks ahead.


"Another key issue to watch out for is the currency market - where comments from China as well as market speculation on the role of the US dollar going forward, continues to create a lot of volatility. So, that in itself will have an impact on Asian financial markets." Barring any major shocks, experts believe the outlook for the Singapore manufacturing sector in 2010 is good - due to new plant capacity and more foreign direct investments.

• S'pore firms should create better balance in pay structures: study Singapore firms should move towards having more long-term incentives in their pay practices. Ernst & Young, which has just released its first study on executive pay in Singapore, said on Tuesday that this will create better balance in pay structures. It added that it is important that rewards are geared towards encouraging prudent risk-taking, especially as the economy emerges from the financial crisis. The study also noted that with signs of an economic recovery, many companies are expecting upward pay revisions in the next financial year. CEOs were among those whose salaries were hardest hit by the global financial crisis. According to Ernst & Young's study on senior management salary in Singapore, the number of chief executives with salaries above S$5 million last year fell to 15 per cent of the total, compared to 23 per cent in 2007. CEOs and business unit heads also took home lower bonuses. However, the trend was different for chief financial officers who appeared to be earning more, with no CFOs earning less than S$250,000 for FY2008, compared to 15 per cent in 2007. Julia Smith, practice leader, Performance and Reward, Ernst & Young, said: "The CFO role has taken on a much bigger profile during the economic crisis and we've even seen cases within the organisation where the CFOs were sort of the unsung heroes of this whole economic crisis. "By anticipating the shortage of cash... they were able to secure credit lines. Some even put their companies in position to acquire and grow during these difficult times, and that was very much rewarded in terms of what we saw in the data." Pay practices in Singapore were also observed to be less dependent on bonuses awarded for a company's performance, compared to the United States. Ernst & Young estimated that pay practices here lean heavily towards short-term incentives, with only about 15 per cent in long-term incentives. Pay practices in the US are believed to comprise about 90 per cent in terms of long-term incentives. According to Ernst & Young, pay practices around the world should emulate those in Britain and Australia, and move towards a more balanced model. "(It should be) done in a way that is actually going to drive the right behaviour for the executive, making sure that... you're providing the amount of pay that is in line with the shareholder interest. "Whether or not that's done through equity plans or stock, or done through cash, remains to be seen. But the idea is that you can't take all your money this year and have your company fall apart two or three years down the road," said Smith. The study also noted that the pay levels for senior executives in Singapore are comparable to those in Hong Kong, although they are marginally behind those in the West.

• S'pore firms invest in new economic zone in China's Fujian province China is developing a new economic zone to transform southern Fujian province. Together with the Pearl River Delta and the Yangtze River Delta, the hub will form an economic powerhouse in the region.


Tourism plays an important role in Fujian's economy and the government is hoping to tap into this with the recent development of a new economic zone in the province. Some Singapore companies are capitalising on this and have started projects in Fujian. One of these firms is Straco Corporation, developer of tourism attractions. Earlier, the senior minister was briefed on current and future expansion plans of YCH, a logistics and supply company, which was one of the first few Singapore firms to enter the China market in 1992. Bilateral trade between Singapore and Fujian hit US$1.37 billion last year, making Singapore the 4th largest foreign investor in Fujian and top investor among Southeast Asian countries. Fujian is hoping that this figure will continue to rise and more investors will be attracted to start projects in the province, with the development of the new economic zone.

• Customer satisfaction levels still declining in various sectors Customer satisfaction levels here have continued to drop despite efforts to boost service standards. The latest customer satisfaction survey conducted by the Singapore Management University's Institute of Service Excellence, showed on Tuesday that five out of six sectors covered in the survey saw a decline in satisfaction scores. Customers' satisfaction in the retail sector suffered the biggest drop this year. The tourism, hotel and accommodation services sector was the next worst-performing sector, but its decline was not as bad as last year's. Satisfaction scores in the education, info-communication and food & beverage sectors also dipped, while the transport and logistics sector was the only one which remained unchanged. The institute said findings since 2007 have shown that customers, at least within the retail and F&B sectors, are now placing more importance on service over product quality. In response to the results, the Singapore Tourism Board (STB) said on Tuesday that the bulk of Singapore-based SMEs were not represented in the survey. STB, which was responding on behalf of the GEMS Up movement, said all businesses face the challenge of attracting new customers and keeping current ones. The challenge is greater now as consumers have higher expectations. It added that customers can also play their part by showing their appreciation for service providers who have delivered good service. Developing a culture of service excellence is what the GEMS Up movement aims to achieve over the next three years. Close to 10,500 households and some 3,500 tourists took part in the survey, which also showed that when it comes to tipping in the F&B industry, some 40 per cent of tourists practised it, while only about half as many locals did so.

• Some firms in Asian markets still face lagging demand The global credit crunch appears to be easing, with many banks becoming more willing to lend again. But experts said on Tuesday that companies in Asian markets, such as Singapore, may face a new challenge in slow demand growth. Speaking at a CPA Australia congress, some said many firms are still grappling with over-capacity, even as the economy shows signs of improvement. Economies in Asia have not been as badly hit as their Western counterparts by toxic assets, which were among the root causes of the global financial crisis. Experts said this will help firms in countries like Singapore to focus on streamlining their businesses and restructuring for a rebound as the world economy recovers. Chaly Mah, CEO of Deloitte, said: "Clearly, things seemed to have bottomed out and business confidence has come, but the real demand hasn't gone back to pre-crisis levels.


If you look at some of the manufacturing levels in this part of the world, they are getting some new orders, but the orders are not at the pre-crisis level yet. "And if you look at those manufacturing companies that are manufacturing for the Christmas sales, most of the orders typically come in during September in order to ship them for the Christmas season, but the level of orders have not come back to pre-crisis levels, so it is still a challenge and still pretty fragile." Going forward, experts said companies need to prepare for the withdrawal of government stimulus packages which will reveal the true state of global, regional and local economies. Richard Petty, president and chairman of CPA Australia, said: "I don't think it's going to be across the board that we are going to see a pick-up in demand, we are going to see it in particular industries in the near term. I think that we can see certain sectors of the economy that will likely do better in the short term than others." The financial sector, for example, is expected to do relatively well as companies are likely to need advice on financial, business and tax issues, as well as core banking services as they make their way out of the recession.

• Some firms in Asian markets still face lagging demand The global credit crunch appears to be easing, with many banks becoming more willing to lend again. But experts said on Tuesday that companies in Asian markets, such as Singapore, may face a new challenge in slow demand growth. Speaking at a CPA Australia congress, some said many firms are still grappling with over-capacity, even as the economy shows signs of improvement. Economies in Asia have not been as badly hit as their Western counterparts by toxic assets, which were among the root causes of the global financial crisis. Experts said this will help firms in countries like Singapore to focus on streamlining their businesses and restructuring for a rebound as the world economy recovers. Chaly Mah, CEO of Deloitte, said: "Clearly, things seemed to have bottomed out and business confidence has come, but the real demand hasn't gone back to pre-crisis levels. If you look at some of the manufacturing levels in this part of the world, they are getting some new orders, but the orders are not at the pre-crisis level yet. "And if you look at those manufacturing companies that are manufacturing for the Christmas sales, most of the orders typically come in during September in order to ship them for the Christmas season, but the level of orders have not come back to pre-crisis levels, so it is still a challenge and still pretty fragile." Going forward, experts said companies need to prepare for the withdrawal of government stimulus packages which will reveal the true state of global, regional and local economies. Richard Petty, president and chairman of CPA Australia, said: "I don't think it's going to be across the board that we are going to see a pick-up in demand, we are going to see it in particular industries in the near term. I think that we can see certain sectors of the economy that will likely do better in the short term than others." The financial sector, for example, is expected to do relatively well as companies are likely to need advice on financial, business and tax issues, as well as core banking services as they make their way out of the recession.

• Clinton meets MM Lee, says Singapore is a valued partner Singapore's Minister Mentor Lee Kuan Yew on Monday met US Secretary of State Hillary Clinton in Washington. During the meeting at the state department, Mrs Clinton said Singapore is a long and valued partner of the US on many important issues. Mr Lee


said it is time America renews and resumes engagement with Southeast Asia and East Asia, as Asia will alter the shape of the 21st century. The minister mentor is on a visit to New York and Washington DC. On Tuesday evening, Mr Lee will deliver a speech and receive the inaugural Lifetime Achievement Award from the US-ASEAN Business Council during the Council's 25th Anniversary Gala Dinner.

• KPE ranked among best managed tunnels in Europe in design, safety Singapore's Kallang-Paya Lebar Expressway is ranked among the best managed tunnels in Europe both in design and safety, according to the prestigious European Tunnel Assessment Programme, EuroTap. EuroTAP examines the preventative, detection, mitigating and self-rescue features of a tunnel as well as its risk and safety potentials. An independent benchmarking exercise conducted in July this year, ranked the KPE in the band of "very good". That is the top rating under the European Union Directive on Safety Requirements for Road Tunnels in Europe. There is no mandatory requirement for tunnels in Singapore to benchmark against any international safety standards. But the Land Transport Authority said it has undertaken this assessment to ensure that the design and operations of KPE are able to meet the same rigorous international standards that are required of European tunnels.

• Experts say Singapore's economic landscape must evolve As the global economy recovers, Singapore's economic landscape must continue to evolve if it wants to stay ahead of the competition. Academics and private sector economists at the Singapore Policy Forum on Tuesday said that this should include building a stronger base of local enterprises, as well as focusing more on the services sector rather than manufacturing. Many economists believe that the global economic landscape will look very different in the aftermath of the economic crisis. External demand may not return to pre-crisis levels anytime soon, due to unresolved financial issues in Europe and the US, coupled with potential asset bubbles. And so, experts said Singapore needs to develop a more diversified corporate eco-system. "Currently we have a very strong presence of multi-national companies and government-linked companies, which I think is good and has been very positive for Singapore. But what we lack is sufficiently strong private local enterprise, and I think we need to do a lot more to try and help develop this," said Manu Bhaskaran, CEO, Centennial Asia Advisors. "The government through SPRING Singapore and other agencies are already doing quite a bit. But I think one of the problems we have for local enterprise is the capacity to grow quickly by accessing larger markets, gaining economies of scale and the like," he added. According to other experts, another way to gain access to a larger market is to leverage on technology and carve out a niche by offering unique services. Jimmy Koh, treasury economist, UOB said: "It is no longer about products, it is about services. It is no longer about just services, but it is the unique services that no one can duplicate. "We (Singapore) moved from electronics to bio sciences. We are moving from the traditional services to tourism, in terms of educational tourism, medical tourism and the


two Integrated Resorts that will kick in next year. So it is trying to create something - the niche that in the short term will be difficult to be duplicated by any country." Singapore is already a "service economy" with two thirds of the nation's total output generated through services. "Many types of services are well known to be recession-proof in the sense that they are not so much affected during bad times - for example, education and even healthcare," said Choy Keen Meng, professor, Economic Growth Centre, NTU. Going forward, experts are hopeful that the Economic Strategies Committee, announced by Prime Minister Lee Hsien Loong earlier this year, will look at Singapore's growth model and review its viability in a post-crisis world.

• APEC summit likely to open many trade doors Leaders from the Asia-Pacific Economic Cooperation (APEC) will be meeting in Singapore for a summit in two weeks, and the spotlight will be on US President Barack Obama, as he spearheads US efforts to promote trade with the region. According to former Deputy US Trade Representative Peter Allgeier, APEC is an important forum for the US. "First of all, there has been a lot of work within APEC to promote regional economic integration and good policies. It has been able to continue and build on that work. The other thing is that it is a very collaborative kind of organisation, it is not a confrontational one," said Mr Allgeier. Speaking at a seminar in Singapore, he singled out the services sector as one key area of cooperation, especially in sectors such as financial services, telecoms, energy, environment and information technology. The US is in the process of working out a free trade pact with South Korea, and when passed by Congress, it is likely to signal the beginning of stronger US involvement in the Asia Pacific. "The next step really, is for ratification by both governments. Carrying that final step would be a sign that the United States is going to be increasingly engaged in Asia, and I think frankly, it is very much in our economic interests to approve that agreement," Mr Allgeier said. Looking ahead to the APEC summit, Mr Allgeier said that the meeting between President Obama and ten ASEAN leaders would likely open many trade doors. However, it would be premature to expect any talk about an FTA between the US and this region at the summit.

• Experts say carbon trading markets are picking up Experts have said that as global financial markets begin to pick up, so are carbon trading markets. Carbon trading allows countries to buy carbon credits from green initiatives to balance out global carbon emissions. While such carbon trading projects may have been put on hold as a result of the financial crisis, experts said things are starting to look up. In the past 12 months, carbon projects have taken a hit as financials tightened investment into the market due to the global credit crunch. This caused prices of carbon to drop by some 75 per cent in the eight months leading up to February this year. Carbon credits are mainly traded via clean development mechanism (CDM) projects, a certification under the Kyoto Protocol aimed at global emission reduction. With signs that the global economy is picking up, life is returning to the carbon trading market.


"So prices are coming up again, more projects are also being put on the market... China is (still) the biggest project offerer - about 60 per cent of the entire CDM market is taking place in China at the moment." CDM's typically hold themes of sustainability such as clean energy generation projects. For businesses coming out of the crisis, experts added that carbon trading is a great alternative source of finance for clean energy-related projects. Mr Dreyer said: "CDM is offering an alternative way and an additional way to get funding to realise projects. "You can use future savings in emissions to basically pay for the investment you are going to do, and of course that is a very good mechanism which is helping to bring projects on the ground a bit faster then traditional financing methods." Experts said that going forward, while there may be concerns over shifts in the carbon trading market post-2012 when the Koyoto Protocol comes to an end, now is still an opportune time to gain first mover experience as carbon emissions and climate change will continue to be top issues in the years to come.

• Singapore improves overall score on gender equality It has improved on its overall score on equality between the sexes, but Singapore has slipped again in the world gender gap index by the World Economic Forum. The Lion City ranks 85th out of 134 countries, down a spot from last year. Its score, however, improved marginally to 0.666 (on a scale where 1 indicates full equality). Topping the list again were Iceland (0.827 high score), Finland, Norway and Sweden. Near the bottom were Iran, Saudi Arabia and Pakistan, while Yemen (0.46) took last place. In terms of women's economic participation and opportunities relative to men's, Singapore did all right, ranking 58th. The proportion of women to men in the ranks of professional and technical workers was close to equal, at 0.82. But estimated earned income was far below parity (0.52) while the female-to-male ratio of those who worked as legislators, senior officials and managers was 0.44. In the "political empowerment" category, Singapore scored a mere 0.1 - but this failed to register that there is now a female Cabinet minister, Mrs Lim Hwee Hua. As for literacy rates and educational enrolment, female Singaporeans were nearly on par with their male counterparts. In terms of healthy life expectancy, they fared better. When contacted, parliamentarian Madam Halimah Yacob said the results would have to be analysed carefully. "From our perspective, there seems to be no widening of the gender gap ... But we will always be mindful of gaps. For example, the lack of women representation in top echelon of companies needs to be addressed." Meanwhile on Wednesday, the NTUC Women's Development Secretariat launched a new publication to inspire more local firms to look at work-life innovations based on some companies' experiences. Mdm Halimah, the secretariat's director, said this could help boost the female workforce participation rate from 56 per cent, which is well below the Scandinavian countries' 76 per cent.

• Survey ranks S'pore as world's No.2 best place to do business Singapore overtook London as the investors' preferred place for doing business in a Bloomberg Global survey. Singapore was chosen by 17 per cent of respondents who said it was the second best place for financial services two years from now. New York, despite being battered by the financial crisis, remained the world's leading financial centre, with 29 per cent of the votes. London was in third place, garnering 16


per cent of the votes. Analysts said Singapore is growing in popularity as companies look for ways to tap the wealth accumulated in China and the rest of Asia. Respondents also favoured Singapore because it is well organised and efficient. Private wealth management, in particular, is growing in Singapore - which has no capital-gains tax. Shanghai was also popular, with 11 per cent of the votes, largely due to China's huge growth potential. Meanwhile, Tokyo - which was once considered a global hub - received the nod from only one per cent of respondents. The quarterly survey, which was conducted in early October, polled over 1,400 Bloomberg subscribers in six continents.

• Business sentiment among manufacturers improves for next 6 months: EDB The Economic Development Board (EDB) said business sentiment among manufacturers here has improved. Data from its latest Business Expectations Survey showed a weighted 22 per cent of firms predict an improvement in the business conditions in the next six months compared with 16 per cent last quarter. A weighted 13 per cent of companies foresee worse business conditions over the next six months, lower than 18 per cent a quarter ago. Meanwhile, a weighted 65 per cent expect the situation to remain the same. Almost all clusters within the manufacturing sector expect an improved business environment as the global economy shows signs of recovery. The electronics cluster is the most optimistic with a net weighted balance of 22 per cent of firms expecting business conditions to improve. This is followed by the general manufacturing industries with a net weighted balance of 20 per cent. Business expectations for the precision engineering and chemical clusters have turned positive for the first time since the onset of the financial crisis last year. However, the chemicals cluster is still concerned about excess supply of petrochemicals and petroleum refined products in the region. EDB said the transport engineering cluster is the least upbeat about business conditions for the period October 2009 to March 2010, compared to a quarter ago. Despite an improvement in business sentiments in the next six months, a net weighted three per cent of manufacturers expect output to decline in the fourth quarter of this year, compared to the third quarter. The improved outlook has had a knock-on effect on recruitment. A weighted 92 per cent of manufacturers project a similar or higher level of employment in the fourth quarter. This compared to a weighted 87 per cent recorded in the survey conducted a quarter ago. Meanwhile, business sentiment has also improved in the services sector. The Statistics Department said an overall weighted balance of 28 per cent of firms in the services sector forecast a favourable business outlook for the next six months. This is higher than the 21 per cent of firms who recorded a positive outlook in the previous Business Expectations Survey a quarter ago. In particular, hoteliers and firms in the catering industry were the most optimistic in the hope of better business in view of the year-end festive period and school holidays. Department stores as well as retailers of clothing and footwear and jewellery and watches also foresee higher sales in anticipation of the festive shopping season in the coming months. Banks & finance companies, brokerages, fund managers and insurance companies are also expecting higher levels of business activity during this period.


However, firms in the real estate industry expect the demand for services to remain the same in the next six months.

• Environmental Front • At Social Front • 1,500 more places allocated to Singapore for Haj season

The Saudi Haj Authority has allocated an additional 1,500 places to Singapore for the coming Haj season. This brings the total number of places available for Singapore this year to 2,180 – the same as last year. The Islamic Religious Council of Singapore (MUIS) had earlier requested for 4,000 places for Singaporean Muslims to go on a pilgrimage to the holy city of Mecca, which is part of a religious tradition. The request is based on demands this year which number around 3,700, including 820 Muslims who were unable to go on their pilgrimages last year. This group of Muslims will be given priority for this year's Haj. Singaporean Muslims have to apply to the religious council to be short-listed for their pilgrimages. MUIS has advised successful applicants to select their Haj package early from approved travel agencies so as to settle the necessary arrangements and documentations without problems.

• Singapore to receive first batch of H1N1 vaccine in 2 weeks Singapore will receive its first batch of the H1N1 flu vaccine in two weeks, with one million doses due to arrive by Christmas, Health Minister Khaw Boon Wan said on Sunday. This will be enough to satisfy the country's immediate needs, Mr Khaw told reporters at a community event. He also advised travellers to get vaccinated against the new flu strain, and urged those who want to have the jab before Christmas to notify their general practitioner as soon as possible. "I'll keep about 20 per cent for my frontline staff, and the rest will be distributed to the general practitioners," said Mr Khaw. "That's why we need to get from them what are their expected orders." Vietnam

• Political Front • Foreign Relations • Vietnam, Cambodia discuss security, extradition pacts

Vietnam and Cambodia on Thursday discussed an agreement to strengthen public security ties as well as an extradition treaty to deal with crimes along their border areas. Police said border crimes have become more complex and serious than previous years. Since the beginning of last year, more than 1,890 smuggling cases were detected involving goods worth US$6.2 million. Other crimes, including drugs, arms and human trafficking, have also thrived along the Vietnam-Cambodia border, which stretches for nearly 1,200 kilometers. Vietnam has 10 provinces bordering Cambodia with a total population of 12.65 million.

• Geo-strategic front • Economic Front • Sri Lanka, Vietnam boost trade

US$ 100 m target set for two-way trade volume by 2012: President Mahinda Rajapaksa and Vietnamese President Nguyen agreed to encourage bilateral trade and set the target of US$ 100 million for two-way trade volume by 2012.


President Rajapaksa who was on a State visit to the Socialist Republic of Vietnam from October 22 to 24 also discussed a range of matters of mutual interest which included trade and investment promotion, agriculture, cultural cooperation, air services and defence and transnational crime prevention with President Nguyen. President Rajapaksa undertook the State visit at the invitation of Vietnamese President Nguyen Minh Triet. Lanka-Vietnam agreements At the conclusion of the official talks between the two Presidents, a number of agreements were signed between the two countries. They included: * Agreement between the Democratic Socialist Republic of Sri Lanka and the Socialist Republic of Vietnam on Protection and Promotion of Investments * Cooperation Agreement between the Sri Lankan Defence, Public Security, Law and Order Ministry and Vietnam’s Public Security Ministry on Preventing and Combating Crimes; * Work Plan for 2010-2011 on Agriculture Development Cooperation between the Agricultural Development and Agrarian Services Ministry and VietnamAgriculture and Rural Development Ministry. * Agreement on the Work plan for 2010-2013 between the Fisheries and Aquatic Resources Ministry and Vietnam’s Agriculture and RuralDevelopment Ministry on the field of Fisheries Cooperation; * Memorandum of Understanding on Cultural Cooperation between the Cultural Affairs and National Heritage Ministry and Vietnam’s Culture, Sport and Tourism Ministry. The President was accompanied by Foreign Minister Rohitha Bogollagama, Export Development and International Trade Minister Prof. G. L. Peiris, Enterprise Development and Investment Promotion Minister Anura Priyadarshana Yapa, Western Province Governor Alavi Mowlana and senior officials and a group of business personnel. President Rajapaksa was accorded an official welcome at the Presidential Palace in Hanoi on October 22. President Nguyen Minh Triet held official discussions and hosted a State Banquet in his honour. President Rajapaksa also met Secretary General Communist Party of Vietnam Nong Duc Manh and Vietnamese Prime Minister Nguyen Tan Dung. During his stay in Hanoi, President Rajapaksa placed a wreath at the Ho Chi Minh Mausoleum in honour of the leader of Vietnam. The bilateral discussions were held in an atmosphere of friendship, warmth and close understanding. The Heads of State noted the excellent state of the relations between Vietnam and Sri Lanka. The Vietnamese President congratulated President Rajapaksa on the defeat of the LTTE in Sri Lanka and reaffirmed Vietnam’s support for the sovereignty and territorial integrity of Sri Lanka. President Nguyen Minh Triet expressed support for President Rajapaksa’s efforts to build a peaceful and prosperous nation. In response President’s request for assistance in clearing mined areas in the Northern province, the Vietnamese side agreed to consider cooperation with Sri Lanka in demining process. President Rajapaksa thanked the President and the Government of Vietnam for their steadfast support to combat the LTTE in Sri Lanka, and in this context, for extending support to Sri Lanka at the UN Security Council and the Human Rights Council. The two leaders also exchanged views on a number of regional and multilateral issues of mutual concern and agreed to continue to work together for the mutual benefit of the two countries based on the principle of non interference.


President Rajapaksa congratulated Vietnam for her impressive economic development recorded during the renovation process and expressed Sri Lanka’s felicitations for Vietnam’s achievements in foreign affairs, including its successful assumption of the role as a non permanent member of the UN Security Council and its forthcoming ascend to the Chairmanship of ASEAN in 2010. The President of Vietnam felicitated President Rajapaksa for the important contribution made by Sri Lanka as Chair of the South Asian Association for Regional Cooperation (SAARC), Asia Cooperation Dialogue (ACD) and G-15, and as a member of ASEAN Regional Forum (ARF). The discussions covered a wide range of matters of mutual interest which included trade and investment promotion, agriculture, cultural cooperation, air services and defence and transnational crime prevention. Both leaders agreed to encourage bilateral trade and set the target of 100 million US$ for two-way trade volume by 2012. The two leaders welcomed the successful conclusion of the Second Session of the Joint Commission between the two countries which was held in August 2009 in Sri Lanka. The Joint Commission was recognized as an effective mechanism to further enhance bilateral relations between the two countries in many spheres of cooperation. The Vietnamese President nnounced his country’s decision to reopen a resident Embassy in Colombo. President Rajapaksa welcomed this announcement and expressed confidence that a resident Vietnamese Mission in Colombo would help to further strengthen the friendship between the two countries in developing a comprehensive partnership with Vietnam. The President and the delegation also visited Ho Chi Minh City, the main commercial centre of Vietnam and were received by Chairman of the People’s Committee of Ho Chi Minh City Le Hoang Quan. President Rajapaksa inaugurated the Vietnam - Sri Lanka Business Forum which was jointly organized by the Vietnam Chamber of Commerce and Industry and the Foreign Investment Agency of the Ministry of Planning and Investments together with Foreign Ministry and the Board of Investment of Sri Lanka in Ho Chi Minh City. The Business Forum was attended by business leaders of the two countries together with dignitaries of the two Governments. The Forum acknowledged the increase of the trade volume between the two countries. President Rajapaksa extended an invitation to Vietnamese President Nguyen Minh Triet, to undertake a State visit to Sri Lanka in a convenient time. President Nguyen Minh Triet accepted the invitation. The specific dates for the visit would be discussed through diplomatic channels.

• Vietnam launches biofuel crop project boost The first stage of a project focusing on vegetable and biofuel crops has kicked off with the inauguration of a Vegetable Component Office at Vietnam's Fruit and Vegetable Research Institute (FAVRI).

• Pace of Vietnamese inflation slackens Vietnam's consumer price index rose 0.37 per cent in October from the month before, down from September's 0.62 per cent, the General Statistics Office said Tuesday. Prices were up 7.2 per cent year-on-year, agency official Pham Tien Nam said. Credit growth stemming from Vietnam's billion-dollar, anti-recessionary stimulus package has led to fears of rising inflation, but the new figures showed little sign of it. The statistics office said the rise in the index was led by transportation, telecommunications, education and construction prices. Food prices fell 0.32 per cent month-on-month and 2.54 per cent


year-on-year. Exports rose 1.5 per cent in October to 4.7 billion dollars while imports were up 7.25 per cent to 6.7 billion dollars. Vietnam's trade deficit in the first 10 months of the year hit 8.8 billion dollars, down from 16.4 billion dollars over the same period last year.

• Social Front • Dengue outbreaks affecting the Philippines, Vietnam and India

CDCThe mosquito borne virus, dengue fever, is being seen in increased numbers in many parts of Southeast Asia and India. In the Philippines, an Iloilo City newspaper reports 190 cases so far this year in the Capiz province alone. According to the Provincial Health Office in Capiz the majority of those infected are children, 97 boys and 93 girls. In addition there have been 3 deaths.The Prime Minister of Vietnam,Nguyen Tan Dung issued instructions on measures to be taken promptly against dengue fever in the wake of a surge in infections from the disease which is likely to evolve into a large-scale outbreak. Localities nationwide have reported 72,155 dengue fever cases so far this year -- a 7.1 percent rise from the same period last year. The disease took the lives of 58 people. And finally in the Indian capital of New Delhi, twenty four fresh cases of dengue fever were reported from the capital Tuesday in an outbreak that has killed two and infected 280 people.Although the sudden surge in positive cases is a cause for concern, the civic authorities state that the situation is under control and there is no need for panic. According to them, the figures are much lower than the previous year when the capital recorded 1,321 cases and two fatalities from the ailment. However, precautionary measures are being put into place to prevent escalation.Dengue fever is an infectious disease carried by mosquitoes and caused by any of four related dengue viruses. This disease used to be called “break-bone fever” because it sometimes causes severe joint and muscle pain that feels like bones are breaking. Dengue fever of multiple types is found in most countries of the tropics and subtropics particularly during and after rainy season.There are four types of dengue virus: DEN-1, DEN-2, DEN-3 and DEN-4. People get the dengue virus from the bite of an infected Aedes mosquito. It is not contagious from person to person.There are three types of dengue fever in order of less severe to most: the typical uncomplicated dengue fever, dengue hemorrhagic fever (DHS) and dengue shock syndrome (DSS).

• US helps Vietnamese disaster victims US Ambassador to Vietnam Michael Michalak on October 29 handed over US$500,000 to the Vietnam Red Cross (VRC) to support victims of storm Ketsana in the four provinces of Quang Nam, Quang Ngai, Gia Lai and Kon Tum. The money which was donated by the US government, the US Red Cross and the US Agency for Cooperation and Development is under a supporting project to help 35,000 people in the four provinces overcome the damage and handle their economic situation. The project, launched from October 29 this year to January 20, 2010, will provide assistance for households in the storm-hit areas to buy safe water, food, medicine, agricultural equipment, repair their houses and pay children's tuition fees. VRC Chairman Tran Ngoc Tang said the emergency aid project is part of the association's prioritised activities to support the storm victims and is a practical activity in response to the appeal of the International Federation of Red Cross and Red Crescent Societies.


For many years, the US has helped the VRC to launch many support programmes and projects in 22 Vietnamese provinces and cities such as those on sanitation education and school nutrition in northern mountainous and central provinces, a flu prevention project and an HIV/AIDS treatment project. To respond the appeal of the International Federation of Red Cross and Red Crescent Societies, many international Red Crosses, foreign governments and international organisations in Vietnam have donated around VND82 billion to disaster victims.

• Environmental Front Cambodia

• Political Front • Thailand-Cambodia Dispute Overshadows Summit

An uncharacteristically edgy summit of the Association of Southeast Asian Nations (Asean) threatened to boil over yesterday as Thai-Cambodian relations took another turn for the worse. A visibly exasperated Thai Prime Minister Abhisit Vejjjiva hit back at his Cambodian counterpart Hun Sen, calling him “seriously misinformed” over the latter’s remarks comparing fugitive former Thai PM Thaksin Shinawatra with Burmese pro-democracy leader Aung San Suu Kyi.Hun Sen had earlier offered Thaksin, who was deposed in a 2006 coup, a job as an economics advisor and said that if the exiled media mogul chose to come to Cambodia, he would not face extradition to Thailand to face corruption charges. “Thaksin can stay in Cambodia as the guest of Cambodia and also be my guest as my adviser on our economy,” said Hun Sen. His remarks comparing the former Thai prime minister with Aung San Suu Kyi raised many eyebrows among summit delegates, as he attempted to capitalize on the international media attention on Asean this weekend to highlight his view that Thaksin’s plight is politically driven. “Hun Sen’s comments are being seen as an attempt to intervene in Thailand’s precarious domestic political situation,” said Thitinan Pongsudhirak, the director of the Institute of Security and International Studies (Thailand) at Chulalongkorn University in Bangkok. Last week, Hun Sen gave a pointedly high-profile reception to former Thai prime minister and Thaksin ally Gen Chavalit Yongchaiyuth. Chavalit said “Mr Hun Sen is my old friend and I am visiting him at his invitation.” Last month, Cambodian opposition leader Sam Rainsy was in Bangkok, where he addressed the Foreign Correspondents’ Club of Thailand on press freedom in Cambodia. Rainsy slammed the Hun Sen administration, saying that it gives token assent to freedom of speech but uses state resources to hit critics with defamation suits, backed by a pro-government judiciary. Thitinan said he thinks that Hun Sen has taken umbrage at Rainsy using his time in Thailand to attack the Cambodian government. Speaking to The Irrawaddy on the sidelines of the Asean summit, Cambodian opposition MP San Cchay said that Hun Sen’s reaction shows that he does not understand how a liberal democracy works. “Just because Sam Rainsy talks in critical terms while in Thailand does not mean it has anything to do with the Thai government. Hun Sen merely betrays his own anti-democratic leanings with such an assumption,” he said. Yesterday, the anti-government and pro-Thaksin United Front for Democracy against Dictatorship (UDD) called on Asean to withdraw support for Abhisit as the bloc’s chairman. The UDD is seeking a


royal pardon to enable Thaksin return to Thailand without having to face jail time on corruption charges. The UDD is also seeking a general election and deems the Abhisit government as illegitimate. Thaksin is regarded as the most popular yet divisive head of government in recent Thai history, implementing pro-poor policies and developing the northeastern Isaan region, but periodically clamping down on media, launching a draconian war on drugs and seeking a military solution to the southern Thailand Muslim rebellion. Interestingly, Hun Sen’s comparison of Thaksin’s situation to that of Suu Kyi comes as the Nobel Peace Prize laureate marks a total of 14 years in detention today. She was first arrested in July 1989, ahead of a landslide electoral victory by her party, the National League for Democracy, in May 1990. The comparison was made even as five Asean member states, including Cambodia, refused to allow NGO representatives other than those handpicked by the governments to attend a scheduled “civil society” meeting with regional heads of government. Nay Vanda of the Cambodian Human Rights and Development Association—selected by the Asean People’s Forum as his country’s representative at the meeting—said he was disappointed with the outcome.

• Foreign Relations • FM: Cambodia, India to strengthen defense, anti-terrorism co-op

Cambodian Foreign Minister Hor Namhong said on Sunday that India and Cambodia will strengthen the cooperation on the fields of national defense and anti-terrorism between the two countries. Cambodian Prime Minister Hun Sen and his Indian counterpart, Manmohan Singh, held bilateral talks on a sideline of ASEAN summit in Thailand and their talks focused on working together to strengthen the defense and anti-terrorism cooperation between the two countries, Hor told reporters at a press conference at Phnom Penh airport after Cambodian delegation arrived from ASEAN Summit in Thailand. India agreed to provide 15 million U.S. dollars concessional loan for building electricity power networks from Kratie and Steung Treng provinces in Cambodia, Hor added. Moreover, Hor Namhong said that Indian Prime Minister will visit Cambodia in an appropriate time at the invitation of Hun Sen. Hun Sen, at the same, also requested the Indian side to help restore and maintain other Cambodian temples because Indian side used to assist Cambodia in the past, Hor said.

• Cambodia will not extradite Thaksin on Thailand’s request Cambodia will not extradite former Thai Prime Minister Thaksin Sinawatra based on a request made by the Thai government, the Cambodian government has said. “The Royal Government of Cambodia likes to make it clear about its position that Cambodia will not extradite Thaksin on any request made by the Thai government if he decides to stay in the kingdom of Cambodia,” said a government statement issued on October 23.The Cambodian government’s statement comes a day after Thailand warned that it would request Cambodia to send Thaksin back to Thailand to serve his two-year jail term if he visits the country.Thailand had made the cautionary note after Cambodian Prime Minister Hun Sen said that Cambodia would warmly welcome Thaksin if he expresses his wish to stay in the country.Hun Sen had also said: "I consider Thaksin as my eternal friend. Cambodia will welcome him to stay here anytime. I will make a house available for him if he decides to visit Cambodia.”


His statement had created a stir in Thailand, especially among pro-government factions, prompting the government to play the ‘extradition’ card. The extradition treaty between the two country states that any party can refuse the extradition request if it considers the demand to be politically motivated, the Cambodian government statement said. The requested party also has a ground for the mandatory refusal if the requested party has well-founded reasons to suppose that the request for extradition made by the requesting party aims to institute criminal proceedings against or execute punishment upon the person, or that the position of the person sought in judicial proceedings will be prejudiced for any of the reasons mentioned above.The statement added that based on the two reasons the Cambodian government has a right to make an interpretation on whether the case against former Prime Minister Thaksin Shinawatra is politically motivated or not. However, the Cambodian government has said Cambodia will maintain its friendly relation and continue to cooperate in all fields with Thailand.

• Cambodia becomes permanent member of World Heritage Committee Cambodian Prime Minister on Tuesday expressed his warmly welcome as Cambodia becomes the permanent member of the World Heritage Committee (WHC) of UNESCO in 17th general assembly in France. "It is a new pride for our country that became fully permanent member of the world heritage committee," Hun Sen told over 2,000 students in graduation ceremony of a university in Phnom Penh. "Itwill promote the image and prestige of the Kingdom of Cambodia on the world arena," he added. On behalf of new permanent member of the WHC, Cambodia will implement its mission with high responsibility and will strengthen the cooperation with other countries, he said. "We will enhance capacity building and study multi experiences with the world heritage committee, UNESCO, and other international forums," he stressed. Moreover, Hun Sen said that Cambodia will do more to follow the common purposes in the WHC that has been working on conservation, culture and heritage development. "We have to enhance more international cooperation to move forward of conservation and heritage development." The Kingdom of Cambodia was elected as a member of the WHC thanks to her richness in cultural properties and history including intangible cultural properties, several of which were inscribed on the World Heritage List, namely the Royal Ballet, the Shadow Theater, Angkor area, and the Temple of Preah Vihear, the premier said. Cambodia becomes one of 21 permanent members which represent 186 countries in the world in the 17th general assembly of world heritage committee that is held from Oct. 23 to 28, 2009 in Paris, France at UNESCO Headquarters. Cambodia became a member of UNESCO in 1951.

• Economic Front • Expanding Economic Horizons

President Lee Myung-bak in his Southeast Asia tour upgraded bilateral ties with Vietnam to a “strategic cooperative partnership” and got assurance from Hanoi to allow South Korean participation in infrastructure construction projects. In Phnom Penh, President Lee and Cambodian Prime Minister Hun Sen agreed to expand two-way cooperation to include areas such as mineral resources and broadcast content production and extend the business visa period for South Koreans. At the summit of the Association of Southeast Asian Nations, President Lee and ASEAN leaders reaffirmed close cooperation on the financial crisis, climate change, cultural exchanges and food security and concurred to


upgrade bilateral relations to a strategic partnership. In his weeklong tour of Southeast Asia, the president has paved the way for further cooperation with nations in the region. Vietnamese Prime Minister Nguyen Tan Dung called President Lee “brother” and Hun Sen showed him the ancient Cambodian temple of Angkor Wat. These actions were affirmations of Seoul’s strengthened ties with the two countries. In March, President Lee announced a “new Asia initiative” to transform his country into a regional leader. The plan seeks to have Seoul speak for Asian countries on the international stage by looking at the continent from a new perspective and raising Asian awareness of Korea. His Southeast Asia tour has helped South Korea take the first step toward this goal by improving ties with nations in the region. With China and Japan maintaining their influence on the region, South Korea might find it tough to emerge as an Asian leader and face setbacks in achieving its goal. The country’s diplomacy, however, should pursue a plus-sum game instead of a zero-sum game. While strengthening trust-based cooperative relations with Beijing and Tokyo, Seoul needs to employ a win-win strategy with other governments in Asia. The International Herald Tribune said yesterday that South Korea has enough confidence and money to exert influence in Asia. South Korean diplomacy has focused on the United States, China and Russia due to its territorial division and the geopolitical situation of being surrounded by powerful countries. In the 21st century, countries face the same challenges such as the global economic crisis and climate change, so a shift in diplomacy to embrace diverse issues and interests is directly linked to South Korea’s survival. The diversification of diplomacy is also critical to resolve the North Korean nuclear program and human rights abuses, which have been dealt with by the United Nations, and for Seoul to raise its voice in the international community. With abundant natural resources, 52 percent of the world’s population, 21 percent of global GDP and 26 percent of world trade, Asia is comparable to North America and the European Union in economic power. For further economic development, South Korea must make the most of Asia’s potential. To make President Lee’s new Asia initiative a success, Seoul must devise sophisticated strategies and pull wisdom from all sectors. This goal cannot be achieved by government efforts alone. Active participation from the private sector is also necessary.

• Korea offers Cambodia more development aid Korea will provide a further $9.25 million to Cambodia in new development assistance in 2010 and 2011 to fund a road construction project in Siem Reap, best known for its proximity to Angkor Wat, according to the Blue House.Korea gave $5.9 million between 2005 and 2009 to build the road in an effort to help conserve the cultural heritage site. The Korea Ring Road will help disperse traffic in the area, contributing to protecting the 800-year-old temples, the Blue House said in a press release. Following a visit to Angkor Wat to discuss the road project and cultural preservation, Lee departed for Hua Hin, Thailand, yesterday to attend a series of regional summits. Today and tomorrow, Lee will attend the Korea-Asean summit and the Asean Plus Three summit where leaders of 10 Southeast Asian nations, China and Japan will join him. In the regional summits, Lee will seek the participating leaders¡¯ support to resolve North Korea¡¯s nuclear crisis, the Blue House said. Measures to fight climate change and promote green growth will also be addressed. After the Asean Plus Three summit, the


leaders are expected to adopt a statement on food security and bio energy development cooperation. Tomorrow, the South Korean president will also attend the annual East Asia summit, in which the leaders of the Asean Plus Three and India, Australia and New Zealand will sit down to discuss regional and global issues.According to the Blue House, the Lee administration will concentrate its efforts on cementing trust between Korea and Asean. During a cabinet workshop last Sunday, Foreign Minister Yu Myung-hwan said Korea will use the Group of 20 summit that it will host in November next year as an opportunity to promote Lee¡¯s New Asia Initiative, the Blue House has said. Lee announced a new diplomatic initiative to engage Asia-Pacific nations in March, marking a shift in focus for Seoul¡¯s foreign policy, from the four global powers to relations with its regional neighbors. Lee said Seoul¡¯s foreign policy concentration on Washington, Tokyo, Beijing and Moscow last year was successful and that the time had come to reach out to countries in the region. Under his ¡°New Asia Initiative,¡± Lee¡¯s goal is to speak for Asian nations in the international community. According to the Blue House, Korea seeks to cooperate with Asia-Pacific neighbors while playing a leading role in resolving transnational tasks such as the financial crisis and climate change. Seoul will focus on diplomacy to encourage free trade and investment within the region. According to the Blue House, Lee¡¯s initiative gained momentum over the past seven months after he attended the Asean Plus Three summit in Thailand in April, visited Central Asia in May and hosted the Korea-Asean special summit in June. For stronger ties with Asean, Lee has also promised to increase the Korea-Asean cooperative fund from the annual $3 million to $5 million after 2010. Korea¡¯s official development assistance toward Asean nations will be increased from $155 million of last year to $395 million by 2015. The Asean summits in Thailand later this week and the APEC summit in Singapore next month will be used as key opportunities to promote Lee¡¯s vision, the Blue House said

• Social Front • Environmental Front • Cambodia vows to crack down on safety violations by factory owners.

Officials have vowed to crack down on safety violations that endanger factory workers after toxic fumes in a garment factory in Cambodia’s capital sickened hundreds of workers.The Cambodian Ministry of Labor & Vocational Training allowed World Best Cambodia Co. Ltd. Garment Factory to reopen at its Phnom Penh factory Oct. 14 after more than 400 workers fainted days earlier from inhaling a pesticide.But Uk Vantha of the Department of Health, Ministry of Labor & Vocational Training, said that the continued operation of the factory depends upon a substantial overhaul of working conditions. “The factory used a chemical substance in the cloth warehouses, workplace, on the exterior of the factory, workers’ residences, and bathrooms,” Uk Vantha said.“Additionally, the working environment is inadequate. Water containers are not clean. Toilets at the back of the complex give off a bad smell and the wind blows it into the factory,” he said.Uk Vantha said factory management must clean the building’s interior, upgrade toilet facilities, ensure no deductions from workers’ salaries, and allow workers who have not fully recovered from the poisoning to rest.


He said the factory will be subject to inspections from the Ministry of Health, Ministry of Labor, Ministry of Environment, and local authorities going forward, adding that any factory that disregards Ministry of Labor regulations on the use of toxic substances will be fined. Fainting from fumes On Oct. 12, more than 400 workers, mostly women, lost consciousness after inhaling the pesticide at the World Best garment factory in Phnom Penh’s suburban subdistrict of Chaom Chau, in Dangkao district. The two-year-old factory, which says it employs around 1,500 garment workers, was forced to suspend operations for one day after the incident to rid the premises of remaining chemical vapors. Factory worker Nou Mom, 36, who received emergency treatment at a hospital in Phnom Penh, said she had recovered. Unknown substance Workers from the World Best Cambodia Co. Ltd. Garment Factory are treated at a Phnom Penh hospital after inhaling toxic fumes, Oct. 12, 2009. Credit: RFA Another worker who identified herself as Nary, 21, said that even while she was recovering, she still experienced side effects.

• Typhoon warning for Cambodia and Vietnam The UK Foreign Office is warning travellers in South East Asia of weather forecasts stating that Typhoon Mirinae is likely to hit Vietnam and central and northern Cambodia around 1 – 2 November 2009. The typhoon is currently approaching westwards across the South China Sea. Current projections show that the area it could hit includes Siem Reap, one of Cambodia's main tourist destinations, and the main base for visiting the nearby temple complex of Angkor Wat. The FCO advises travellers visiting the area to continue to monitor the FCO Cambodia travel advice and follow their advice on the tropical cyclones page and at www.tropicalstormrisk.com. Laos

• Political Front • Development of ASEAN civil service agreement expects to be signed

An agreement on the development of ASEAN civil service is expected to be signed today at the end of the 15th ASEAN Conference on Civil Service Matters in Laos.Second day of the 15th ASEAN Conference on Civil Service under the theme of �Public Sector Capacity Development: towards Improved Service Delivery has been seen the progress.The second day meeting had two main events. The first meeting involves the Heads of ASEAN delegations of 10 countries including Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore Thailand and Vietnam, which was chaired by Mr. Khammoune Viphongxay, Deputy Head of the Public Administration and Civil Service Authority, and ASEAN Head of Lao Civil Service.The objective of this meeting was to exchange comments and view regarding cooperation on civil service management in the future and to discuss and approve the ACCSM work plan 2008-2015.Furthermore, the meeting discussed a means of developing cooperation between ASEAN and +3, namely China, Japan and Republic of Korea, in civil service


management and human resource development. This is the first occasion the +3 countries are involved in the ACCSM and the inaugural meeting will take place on 30 October 2009. The proposed cooperation will focus on three areas: E-governance, Human Resources Management (HRM) and Human Resources Development (HRD) and Productivity improvement in the civil service.The second meeting was the technical meeting which was held at the same time. The meeting was chaired by Mr. Nisith Keopanya, Director General of the Civil Service Management Department.The objectives of this meeting are to exchange and report on the progress of civil service activities from each of the ASEAN member countries. The Lao delegation delivery a report on Strengthening Capacity of local Executive Management. The Lao delegation also shared the achievements of training programmes on public administration and civil service management which were delivered to managers and technical staff at local level in 2008-2009.The result of these two meetings will lead to an agreement and the signing of a letter of transmittal at the closing ceremony of the 15th ACCSM conference, according to yesterday press release.

• Foreign Relations

• Laos and China cooperates on human resource development

The Personnel Organization Department of Prime Ministers Office and the Kunming University of Science and Technology, Yunnan province, China signed an agreement on a joint effort to fine tune human resource development in Laos.An aspect of this agreement was that this Chinese university would be teaching the Chinese language to the officers of the Personnel Organization Departments of Prime Ministers Office of Laos, from March 2010.

The Chinese government also said it would provide 15 scholarships to selected officers of the Personnel Organization Department for masterate and doctorate courses.The two sides also agreed to exchange experiences on matters relating social-economic and personnel development.The agreement was signed in Vientiane by representatives of the two bodies, Mr Khamphone Keosavanh, Director General of the Personnel Organization Department of Prime Ministers Office and Professor Dr Gang Deng,

Director of Division of International Cooperation of Kunming University of Science and Technology.The other people at this signing event on 22 October were Dr Boviengkham Vongdara, Head of Office of the Prime Minister�s Office and concerned officials of the two sides.

• Laos, Vietnam achieve in Nam Kanh border demarcation

The leading officials of Lao and Vietnamese Border Demarcation Committee last week gathered at the Nam Kanh 405 border mark between Xiengkhouang province of Laos and Nghe An province of Vietnam to express satisfaction with the success of boundary demarcation.Taking part in the event were Mr Phoukhao Phommsavongsa, Head Office of Lao National Border Committee of the Ministry of Foreign Affairs, Mr


Viengthamoum Phommachanh, Xiengkhouang Acting Governor, leading officials of Vietnam and Laos Border Committee and Nghe An province core officials.

They have celebrated the achievement of 405/1 and 405/2 boundaries at the Nam Kanh border checkpoint.Leading officials of Xiengkhouang province of Laos and Nghe An province of Vietnam have exchanged delivering remarks at the rally, which hosted by Laos.

Mr Phoukhao said that the two national leaders have wished to build peace and friendship border lines between Laos and Vietnam under the convention of border demarcation signed by two countries in 1977 and additional convention on border demarcation in 1986.Two sides were able to succeed in border demarcation with a total length of 2,067 km.Presently, Laos and Vietnam have established 605 border marks, which is located at the Densavanh crossing border checkpoint. The demarcation at the Densavanh crossing border checkpoint was in coincides with the celebration of 46th anniversary of diplomatic relation between Laos and Vietnam

• Economic Front • China-ASEAN Free Trade Area to Set Example for Global Co-operation

The China-ASEAN Free Trade Area (CAFTA), to be established on Jan. 1, 2010, will set a good example for global cooperation, Lao Prime Minister Bouasone Bouphavanh said on Tuesday, 20 October.

China and ASEAN have established strategic partnership, and it will attract much attention from the whole world, Bouasone said on the sideline of the 6th China-ASEAN Expo held from Oct. 20 to 24 in Nanning, capital of south Chinas Guangxi Zhuang Autonomous Region.ASEAN - the Association of Southeast Asian Nations, is a regional cooperation group founded in 1967. It groups Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam, with a total area of 4.5 million square kilometres.CAFTA is the first free trade area agreement signed by China, which will provide zero tariff on 90 percent of products traded between China and the ASEAN and other favourable policies on trade and investment. The establishment of CAFTA is both an opportunity and a challenge for China and ASEAN countries. In the future, a lot more issues concerning all aspects will need discussion, Bouasone said. CAFTA is expected to create a combined GDP of nearly 6 trillion US dollars to become the third largest FTA in the world, only next to the North American FTA and European FTA.Laos is on its way to improve infrastructure and kick off construction projects, such as building railways and highways between Laos and China and other ASEAN countries, to jump into the China-ASEAN trade and investments cooperation as soon as possible, Bouasone said.

He also mentioned China, as the worlds largest developing country, was a key player in the regional development and that China was of much help to ASEAN countries. From the Asian financial storm in 1997 to the global financial crisis starting in 2008, China has


offered 10 billion US dollars worth of financial aid to ASEAN countries, Bouasone said. PM Bouasone Bouphavanh and his delegation returned home on 21 October.

• At Social Front

• private company further donates relief fund to flood victims

The Sengvixay Construction Road-Bridge and Irrigation Company yesterday provided 50 million kip to relieve the flood victims in three southern provinces of Sekong, Attapeu and Saravane.The hand-over was held at the Ministry of National Defence, on 27 October.The money was given by the President of Sengvixay Construction Road-Bridge and Irrigation Company, Mr. Thongla Sengvixay to the Supreme Commander of the People�s Security Defence Force, Lieutenant General Douangchay Phichit, who is also Deputy Prime Minister and Minister of National Defence.On this occasion, Mr. Douangchay expressed thanks to the Sengvixay Construction Road-Bridge and Irrigation Company for assisting the flood victims

Brunei

• At political Front • At Economic Front

• Brunei Meat Exports Via Halal Brand Probable Ghanim International Food Corp Sdn Bhd is keeping its doors open to the possibility of helping domestic poultry producers export their goods to Singapore using the premium Brunei Halal brand. In an interview with The Brunei Times yesterday, Noel Shield, Ghanim interim chief executive, said: "Poultry and fresh meat products are definitely a part of the products on the list of products to be included in the Brunei Halal brand for sure; however it will depend on what the market wants and needs." Ghanim International is the company appointed by His Majesty's Government to oversee the Brunei Halal brand. Recently, the Agriculture Department said it was looking forward to facilitating poultry exports by private growers via the premium brand. Mulaut Abattoir is also confident it could get licence to use the brand to case its entry in export markets for its processed meat products. Should their studies show that there is an opportunity in foreign markets, like the Middle East, Shield said they will definitely consider the intention of interested companies who wish to be represented by the brand. "The whole thing is market driven, even if we see an opportunity to export to Singapore or Hong Kong, then we will do it, however, there is no specific date on when this will happen," he told The Brunei Times. Shield emphasised that the reason Ghanim is particular about overseas market potential is because it is not eyeing the domestic market for distribution of products bearing the premium brand. Aiming for the Brunei market will only add competition to the local small and medium enterprises (SMEs), he said


"We do not want to compete with the local SMEs because that is not part of our plan," said Shield.In an earlier interview, Dr Dabeding Hj Dullah, assistant director of the Agriculture Department, said his office is positive domestic poultry producers will be able to ship to Singapore next year. hopefully under theBrunei Halal brand, as Brunei is currently 100 per cent self-sufficient in poultry. Dr Dabeding said exporters will be making use of the Brunei Halal brand and that this will hopefully lead to exports to the Middle East and other markets with high demand for poultry."The Brunei Halal brand should come not only as a halal product, but a product of quality," he said. Islamic markets for beef products, said the company's acting deputy general manager. "Mulaut Abattoir has been trying to export Mulaut-Haoyue beef to Islamic countries under the Brunei Halal brand," Pg Imran Pg Hj Sabli said. "We are confident that the Brunei Halal brand is a strong brand, and given time and publicity, the Halal brand will penetrate the global halal market," he said of the recently launched seal, which the Sultanate deems will make a splash in Islamic markets chiefly due to its reputation for strict adherence to principles governing food preparation under Islamic teachings.However, at the moment, Ghanim International Food Corp Sdn Bhd has yet to consider Bruneian companies in the initial batches that will carry the seal.We are not concentrating on local production and nearly all of the companies we are working with now are all international companies, about 90 per cent," said Shield, in a previous interview.Once the brand's marketing strategies get on stream though, it should be easier for high-cost SMEs to get on board. Ghanim is the Brunei firm that handles and manages the marketing of the Sultanate's premium halal brand which takes advantage of the country's reputation in selling goods to a growing Muslim market. The firm is looking at major retailers such as Tesco and Carrefour to help sell products registered under the Brunei Halal brand to its target markets. Among some of the objectives for the Brunei Halal brand are giving local firms a platform at gaining a slice of the global halal market, which is estimated at US$580.9 billion and growing rapidly.

• Banks to publish true cost of financing ALL banks will publish annual percentage rates when advertising rates for any financing products and in all financing quotations and agreements in a move to be more transparent, a press statement from the Brunei Association of Banks yesterday said. The annual percentage rate or the effective rate is the true cost of financing to the customer, reflecting all financing costs, including any fees charged by a bank for the financing. Costs incurred for payment of third-party services such as actual legal costs for preparing the documentation or valuation fees payable for professional valuation of properties are excluded from this calculation, the industry group said. The move is aimed at helping banking customers compare the actual cost of financing from one institution to another, thereby enhancing transparency and encourage fair competition, the industry group said."We are also committed to ensure all banking advertising and promotional literature is clear and not misleading and that customers are given clear information about banking products and services," said Javed Ahmad, acting


chairman of the industry group and also the acting managing director of Bank Islam Brunei Darussalam. The objective is to allow competition and market forces to work and encourage higher standard of banking products and services for the benefit of all banking customers, the group added.The statement said the move is in line with the Ministry of Finance and the Brunei Association of Banks's drive for greater transparency to encourage competition."The Financial Institution Division of the Ministry of Finance and the Brunei Association of Banks are committed to set standards of good banking practice when dealing with customers in Negara Brunei Darussalam," the statement read.

• Greater transparency sought from TAP THE Employees Trust Fund (Tabung Amanah Pekerja or TAP) should exercise greater transparency in the way it conducts business to assure contributors their money is safe, said some financial planners and business executives. Contributors have the right to know the details on TAP's investments and retention policy because these affect their retirement fund, said one financial planner who is familiar with the pension fund concept. TAP also owes it to contributors to disclose their operations cost to prevent speculations that monthly contributions are being used to pay for the salaries of the fund's employees, he said.An executive from an information technology (IT) firm said that TAP's transparency on its investments are also important so the public will understand the reasons for any drop or non-distribution of dividends. A TAP representative, requesting not to be named, said: "We have been holding financial roadshows and basically, we have been sharing with our contributors in terms of where we invest our money."Another financial planner said most people think they should have a retention policy, which includes how much they make and disclose it, so when everything is stated, the public will know how much will be re-distributed."There could be a (TAP) retention policy for all we know, but they have never mentioned one, so how would the public know about it?" he asked. He said TAP's investments are "rather unknown" because nothing specific has ever been disclosed.Another matter is how TAP does not disclose their operations costs.A business executive, who wished not to be named, agreed that the pension fund should be more transparent. Contributors are taking risks with TAP by allowing it to invest their money, but when it makes losses people don't get dividends and when profits are reaped, people don't get extra dividends, the financial planner said. The TAP representative said that the funds will still be intact even though there are no dividends for the fiscal years 2008 and 2009."Decrease in returns is basically due to the global financial crisis experienced by everyone. It's not a normal crisis, but faced by all global enterprises," the official said, adding that on their website they have the rate of dividends that were increased since the trust fund's inception in 1993. He said data shows a growth of dividends over the years and there are no fixed dividends. In 1993 it was 1.5 per cent and it increased to 4.25 per cent in 2007/8."What happens next year depends on the performance of markets, it could be higher or lower than the previous dividends. We won't know," said the TAP representative. The financial planner added that the representation of the annual statement shows that contributors are not getting dividends from monthly contributions but only from the


previous year."Representation of the statement is unclear, we are contributing monthly and even if we were getting dividends, the statement does not show," he explained.TAP encourages anyone who has questions about the statements to approach their counters, where staff will be more than willing to help.During TAP's appreciation night 2009 on October 3, the Minister of Energy at the Prime Minister's Office, in his capacity as the chairman of the TAP Board, said that they made the decision to not issue any dividends after taking into account the financial crisis and the global recession which have affected the performance of the fund's investments

• At Social Front • At environmental Front • Economics Of Climate Change Forum

Efforts to increase the level of public awareness of climate change are likely to bear fruit if economic incentives are put in place and policies that condone wasteful consumption are reexamined, Dato Paduka Timothy Ong, acting chairman of the Brunei Economic Development Board (BEDB), said yesterday. In a speech on the economics of climate change, Dato Paduka Ong said the key to meeting climate change challenges is to have economic incentives that may or may not be socially acceptable.He noted that it is clear there are many positive things happening in Brunei with different organisations in the country doing their part in responding to climate change. But in order to efficiently respond to climate change issues, everyone including private individuals and government executives must play their part, he told The Brunei Times. He suggested that creative incentives would help because at public fora, everyone expresses his support but soon forgets it."If there are incentives in place, it can give a higher level of awareness," he said, noting that if there were incentives to re-use plastic bags while shopping it would reduce its usage. Dato Ong said he believed that all human beings are the same and that should there be incentives it would lead to change."Water and electricity are cheap and to move to the next level, there needs to be some form of encouragement to get a more responsible behaviour," he said.He also talked about the possibility of Brunei playing a unique role in exploring hydrocarbon energy because of our forest conversation."It is all up to policy choices, we have plans for self-sufficiency in rice or to build houses for every Bruneian. There needs to be a framework for this (climate change) and the first step is to understand the issue," he said. Dato Ong said it is cheaper to act today than tomorrow."Unfortunately human nature will cause delays which lead back to the point why today, incentives need to come in and give them a push," he added. Investment spent now will lead to more savings in the future and "economy plays a very important part in this", he said. In his speech at the forum entitled "The Economics of Climate Change in Southeast Asia: What is at stake?" organized byBEDB at The Empire Hotel & Country Club, he said: "As long as cars are easy to own and public transportation is inefficient. electricity is cheap and only plastic bags are available at supermarkets," it is unlikely that there will be any change in this area.It all comes down to choices people make government and personal policy choices where each choice involve costs and benefits, he added


CHINA Business and Politics in Muslim World

China Fareeha Sarwar

1st to 17th October 2009

Presentation Date: 21ST October 2009

Outline: China’s 60th anniversary (1st October)

• Chinese president addresses grand rally • Grand national day military parade • French friends under spell of China's red letter day • Pakistani president greets Chinese all over the world • Premier of Ontario hosts reception marking China's National Day • Chinese, Brazilian officials celebrate PRC's 60th anniversary, reiterate

strategic alliance • Castro gives thumbs up to China's national day celebrations • Worldwide media hail China's National Day celebration • Nuclear-capable intercontinental missiles bring climax to China parade

Political front

• China's central government to recruit 15,000 staff • Senior CPC leader visits Harvard University • China reacts to Al-Qaida threat

Foreign relations

• Chinese PM Meets DPRK Counterpart (4th October) • China ready to contribute more to United Nations (7th October) • Chinese vice president Xi Jinping visit 5 European nations October 7-21 • China, Belgium vow to seek stronger ties (8th October) • China’s Vice president Jinping meets European Commission President(8th

October)

• China urges neighbors, US to talk to DPRK(10th October)

• Trade, climate top US-China agenda (10th October)


• Chinese vice president arrives in Germany(10th October) • Chinese top political advisor pledges closer ties with Nepal(13th October)

• China voices "strong dissatisfaction" over Indian leader's visit to disputed region.(13th October)

• China's premier calls for closer co-op within SCO members (14th October) • Premier: China to maintain high-level exchanges with Iran (15th October) • China, Pakistan pledge to strengthen ties(15th October) • Bloc looks to boost cross-border trade (15th October) • Chinese vice president pledges to further bilateral ties with Bulgaria(15th October) • Beijing urged to do more to help with terror fight(16th October) • Chinese vice president, Hungarian PM meet on bilateral ties(17th October)

• Neighbors vow to settle border issues(17th October) Economic front

• China retail sales boom in National Day Holiday (1st october) • China attracts $853 billion FDI in three decades • China's largest oil producer vows to maintain prominence for 50 more years • Tourism industry income during National Day holiday forecast to grow 25% • China to develop Iraq's super-giant oilfield (9th October) • Chinese, Japanese optimistic about China's economic prospect • Chinese premier stresses autumn, winter grain production (13th October)

• Chinese, Russian PMs urge G20's role in tackling global financial crisis(14th

October)

• Zhu elevation step toward top role at IMF(14th October)

• Hong Kong, China shares rise amid strength in oil(15th October)

• US says China not currency manipulator(16th October)

• U.S. Criticizes China for Lack of Yuan ‘Flexibility’(16th October)

• China's US-debt holdings drop (17th October)

• Fiscal revenue rises 33%(17th October)

• Iron ore talks get off to a bad start (17th October)

• China to launch its Nasdaq-style GEM on Oct 23(17th October)

Social front


• Float demonstrates Chinese cultural prosperity

• President of ACWF Chen Zhili visits Jordan • Premier's candor on rock error rocks China(14th October) • China reports first death of A(H1N1) flu

• Chinese, African women pledge cooperation in addressing challenges Ethnic issues

• Chinese wish for national unity, reunification in festive parade(1st October) • Al-Qaida threatens to attack China (8th October)

Environmental front

• Solar panels at National Day parade highlight changes in China's energy use

Regional report North Politics

• President Hu calls for further efforts to protect public stability in Beijing Social front

• Chinese State Councilor urges university faculty, students to embrace innovation (October 14)

• China urges int'l co-op, dialogue for "green" development

Economic front • Hydroelectric project (7th October)

• Old business street gets a new makeup in Beijing(15th October)

Northwest Politics

• Politics108 stand accused in Urumqi riot (9th October) • China sentences six to death over Xinjiang riot (Urumqi) 15th October

Social front • Xinjiang to strengthen education on national unity among youth (12th

October) Economic front Northeast Politics


Social front Economic front Southwest Politics Social front Economic front South central Politics Social front

• 15,000 living near lead smelters will be relocated soon(17th October) • VIP classes halted in Hubei(17th October)

Economic front

• Subway line to traverse Yangtze River in central China(17th October)

Environmental front • Drought leaves 250 ships stranded in south China

East Politics Social front

• Seniors' home must move, govt says(15th October) • 11th Chinese National Games opens in Jinan(16th October)

Economic front

• Shanghai marks 200-day countdown to World Expo HONGKONG AND MACAU Politics

• Hong Kong celebrates national anniversary(2nd October) • HK chief delivers 2009-10 policy address (14th October)

Social front

• HK report 28th death of A(H1N1) flu (5th October) • HK to enhance regional education hub status: CE(14th October)

Economic front • Macao eyes curbs on its booming gambling industry • HK to enhance competitiveness as global financial center(14th O


National report China’s 60th anniversary (1st October 2009)

• Chinese president addresses grand rally

Chinese President Hu Jintao on Thursday called on the Chinese people to unite more

closely to build a "rich, strong, democratic, civilized, harmonious and modernized

socialist country."

History reveals that China's development has never been a plain sailing, Hu said,

adding, "But the people who have their destiny in their own hands and are united will

overcome all difficulties and obstacles and continuously make great historic

achievements."

Looking into the future, China has "infinitely bright prospects," he told a rally

celebrating the 60th anniversary of the founding of the People's Republic of China.

He called on the whole Party, the armed forces and people of all ethnic groups to unite

more closely and make unremitting efforts for the grandiose goal of building a rich,

strong, democratic, civilized, harmonious and modernized socialist country, realizing the

great rejuvenation of the Chinese nation and making new contributions to mankind.

• Grand national day military parade

Chinese army presented the nation and the world its latest armaments and establishments

at the heart of Beijing Thursday morning in a grand military parade marking the 60th

founding anniversary of the People's Republic of China (PRC). Military personnel and

equipment of the Army, Navy, Air Force and the Second Artillery Corps (SAC), or

strategic missile corps, which make up of the People's Liberation Army (PLA), joined the

parade on Tian'anmen Square.


Dressed in the PLA's 2007 Style Uniforms, most of the parading personnel in 56

phalanxes belong to generations born in the 1980sand 1990s, symbolizing the country's

56 ethnic groups marching along the road of socialism with Chinese characteristics. The

one-hour great show televised live worldwide gave the world a chance to watch the

ongoing transformation of the PLA from a labor-intensive force to technology-intensive

might capable of joint operations in modern warfare.

• French friends under spell of China's red letter day

The tour de force parade to mark the 60th anniversary of the founding of the People's

Republic of China has impressed many watching it in France.

The parade was "magnificent in that so many people were celebrating," said Yannick

Benichou, a member of the France-China Friendship Association at ParisTech, told

Xinhua.

"Since New China was founded in 1949, so many great events have taken place in the

land," Benichou said.

Benichou studied at China's Tsinghua University for two years, and witnessed great

changes in Beijing before returning to France in 2008.

"During the Beijing Olympic Games in 2008, the world noted spectacular changes in

China. But they don't know the country has been undergoing changes for years," he said

in fluent Chinese.

"Oct. 1 is a grand festival for China," Dr. Pierre Picquart, a professor of geopolitics

and a specialist on the Chinese diaspora at Paris University, told France 24 radio.

The past 60 years in China were a record of six decades' economic development,

Picquart said.

The Chinese society was becoming more and more harmonious, democracy and social

reform had advanced, and the environment had improved during these years, he added.


In an editorial on Saturday, French daily Le Monde said the spectacular military parade

on Tiananmen Square provided the Chinese people with reasons to be proud.

During the military parade, fifty kinds of China's homemade weapons were displayed

for the first time, the editorial said.

The modernization of the People's Liberation Army was based on the concept of

"active defense" for now, it noted.

China, no longer restrained within the traditional fronts, was participating in

multinational operations to maintain world peace under the leadership of the United

Nations, the editorial said.

• Pakistani president greets Chinese all over the world

Pakistani President Asif Ali Zardari said here Friday that he is proud of Pakistan's

brotherly relationship with China and wishes the Chinese around the world well.

Zardari was the chief guest at the National Day reception hosted by Chinese

Ambassador Luo Zhaohui at the Chinese embassy.

Replying a question by Xinhua on his arrival, Zardari said, "For the Chinese around

the world, I wish them well. I wish them their independence and I applaud the success."

He also said, "I'm proud of the friendship which we have with China. And I'm proud of

our brotherly relationship. And I'm with them in this moment of happiness. The people of

Pakistan share the moments of happiness with the people of China."

Chairman Joint Chiefs of Staff Committee General Tariq Majid, Chief of Army Staff

General Ashfaq Parvez Kayani, Chief of Naval Staff Admiral Noman Bashir, Chief of

Air Staff, Air Chief Marshal Rao Qamar Suleman, government officials and senior

diplomats from other embassies based in Islamabad were present at the reception.


The guests watched dances, songs and acrobatics performed by Chinese troops. At the

end of the performance, chief guests and the Chinese ambassador went on the stage to

greet the performers and had a group photo with them.

• Premier of Ontario hosts reception marking China's National Day

Premier of Ontario, Canada Dalton McGuinty on Thursday hosted a flag raising

ceremony and a reception to celebrate the 60th anniversary of the founding of the

People's Republic of China.

"It is a pleasure to welcome all of you to Queen's Park for this historical occasion, the

60th anniversary of the founding of the people's republic of China," McGuinty said at the

ceremony. "Congratulations to everyone!"

Ontario and Jiangsu Province of China are sister provinces. Mcguinty has been to

China for three times.

• Chinese, Brazilian officials celebrate PRC's 60th anniversary, reiterate strategic alliance

Chinese and Brazilian officials celebrated the 60th anniversary of the People's Republic

of China (PRC) on Wednesday and Thursday, and repeated their willingness to further

strengthen cooperation between the two nations.

Chinese Ambassador to Brazil Qiu Xiaoqi told Xinhua Thursday that at a ceremony on

Wednesday night to celebrate the PRC's diamond jubilee, he and Roberto Jaguaribe,

Brazilian Deputy Foreign Minister, discussed ways to further reinforce the cooperation

between the two countries.

The friendly bilateral ties serve to uphold world peace and guarantee a fair

international order, Qiu said.

Representatives of Brazil's government, congressmen, military officials as well as

civilians attended the ceremony to celebrate China's red-letter day, he added.


Jaguaribe said the current cooperation between Brazil and China has exceeded the

trade level, and has now reached an international level. Brazil and China share many

concerns on major international issues, including climate change, the establishment of a

multi-polar world, and earning more respect for developing countries.

Brazil and China have also intensified cooperation in scientific and energy areas,

including the China-Brazil Earth Resources Satellite program (CBERS) and the state-

owned Petrobras' exploitation mission for oil reserves under the pre-salt layer, he said.

• Castro gives thumbs up to China's national day celebrations

Former Cuban leader Fidel Castro gave the thumbs up to the 60th National Day

celebrations in Beijing in an article entitled "History Cannot Be Ignored," which appeared

in the Cuban daily Juventud Rebelde on Wednesday.

Castro, who left office in 2006 due to an extended illness, cheered the enormous

progress achieved by China in the past 60 years.

He spoke highly of the National Day military parade at Tiananmen Square in China's

capital Beijing, saying the armored vehicles and civilian floats that paraded at Tiananmen

Square were extremely impressive.

Castro also said President Hu Jintao's speech had clearly revealed that during the last

60 years of development and progress, "only reform and openness can allow China to

develop."

• Worldwide media hail China's National Day celebration

Worldwide media have lauded the massive celebration on Tiananmen Square

commemorating the 60th anniversary of the founding of the People's Republic of China

(PRC).


Singapore's leading newspaper, the Straits Times, said on Friday that China's 60th

anniversary was a shining moment and an act which marked China's transformation into a

global power.

The newspaper said in its front page story that China rolled out its sophisticated

weaponry, backed by 8,000 goose-stepping soldiers and an eye-catching formation of

sub-machine gun toting women volunteer troops in pink uniforms set off by white berets

and boots.

"The weapons showed China's dramatic progress in the last 10 years. The People's

Liberation Army is a modernized force now," BoZhiyue, analyst of Singapore's East

Asian Institute was quoted as saying in the report.

Vietnamese newspaper Labor commented on Friday that the unprecedented large-scale

military parade, part of China's grand National Day celebration, confirmed the position of

China as a global power and the world's third largest economy.

The newspaper said the speech of Chinese President Hu Jintao delivered at the

ceremony had shown that Chinese people were confident about a bright future and the

country's strong development.

Vietnamese newspaper People's Army reported that the modern weapons China

displayed at the parade had drawn wide attention. The newspaper The Youth said China

showed it had a large and powerful army.

Greek newspapers printed extensive stories on the 60th anniversary of the founding of

the PRC on Thursday, showing the intense interest in China and the "new position of

Beijing as a world superpower."

The daily Eleftherotypia noted that "China demands a stronger international role,"

which was expressed in the Beijing Olympics and was boosted by its role in tackling the

global financial crisis.


The Greek newspaper Vima added that "the celebrations surpass the spectacular

ceremonies in 2008 for the opening and closing of the Olympic Games... and in a way

prove the 'formula' for the Chinese Communist Party state and rapid development."

Quoting a line from the editorial of the People's Daily, "stepping from poverty to the

general prosperity, China has never been so strong", Greek daily Ethnos underlined that

the military parade attracted great interest by foreign military analysts.

French daily Le Figaro said on Thursday the massive parade in China had shown an

image of a country that was rising and had decided to play a more significant role in the

international community.

Romanian daily Adevarul said "this is a perfect military parade," saying that every

detail was impeccable.

China had shown its most modern weapons to the world through the grand, ordered

and perfect parade, the paper said.

The Togolese newspaper Togo-Presse Thursday said China and its leaders had realized

great progress in every field in the past six decades.

The historic reform in the fields of economy, society, science and technology, and

culture has made China become an influential power, which has attracted global

attention, it said.

Saudi Arabian media said the unprecedented parade had fully shown that China was

returning to the international scene as a world power.

As a country of abundant resources, China's strength was growing, the media said,

adding that the People's Liberation Army had become a high-tech and modern military.

Publishing a Xinhua picture of the celebration, the official Syrian daily as-Saoura

described the celebration as "unprecedented," saying "it aroused Chinese people's

patriotism."


The whole celebration highlighted China's strength in the new century, the paper

added.

The media in Cuba, Finland, Russia, Cambodia and the Philippines also reported and

hailed the celebration and achievements made by China during the past 60 years.

• Nuclear-capable intercontinental missiles bring climax to China parade

China's National Day military parade culminated in the final staging of giant nuclear-

capable intercontinental ballistic missiles. The camouflaged nuclear weapon rode on 18

launch vehicles. Each vehicle had 20 wheels, carrying the "remarkable symbol" of

China's defense muscle.

Political front

• China's central government to recruit 15,000 staff The Chinese central government will start its annual recruitment of new staff in mid

October, offering about 15,000 positions, said the Ministry of Human Resources and

Social Security here Monday.

About 130 departments of the central government and affiliated institutions will recruit

new staff, said a statement issued by the ministry.

The ministry will start taking in applications from Oct. 15 to 24 and an examination will

be held on Nov. 29 at the capitals of provinces, autonomous regions, municipalities and

several big cities, the statement said.

The departments prefer people with grassroots working experience, it said. "About 70

percent of the positions will be taken by people with at least two years of working

experience at the grassroots level."

A quota will be provided for young people who finish their service in the government

programs of working at remote and less developed regions and villages after college

graduation, it said. But the statement did not release how much it will be.


"We hope high quality talents with adequate grassroots experience will work for the

central government," said a ministry official in charge of the recruitment.

The application will be done on Internet.

• Senior CPC leader visits Harvard University Li Yuanchao(L), head of the Organization Department of the Central Committee of the Communist Party of China (CPC), also a member of the Political Bureau and Secretariat of the CPC Central Committee, meets with President of Harvard University Drew Gilpin Faust in Boston of the U.S., on Oct. 16, 2009.

• China reacts to Al-Qaida threat (10th October) China rejected Saturday Al-Qaida accusations of the suppressing of the Muslims in the

country and vowed to work with other countries to deal with terror threat.

"Xinjiang has fully implemented the policies of equality of all ethnic minorities and

religious freedom," said foreign ministry spokesperson Ma Chaoxu in a written

statement.

Xinjiang's economy has realized sustainable, rapid and healthy development, and people

of all ethnic groups in the region have shared the achievements in the social and

economic development, said Ma.

The remarks came after Abu Yahya al-Libi, a prominent Al-Qaida militant, threatened to

attack Chinese targets in "reprisal" for the July 5 riots in Urumqi, Xinjiang Uygur

autonomous region and for the suppressing of Muslims.

"China has the confidence and capability to secure national security, and protect the

safety of people's lives and properties," said the statement.

China will continue to cooperate with international community to deal with the threat of

terrorism, said the spokesperson.

Foreign relations

• Chinese PM Meets DPRK Counterpart


Chinese Premier Wen Jiabao held talks with his Democratic People''s Republic of Korea

(DPRK) counterpart Kim Yong Il here Sunday. The Chinese Premier arrived here Sunday

on a three-day "anticipated state" visit at the invitation of the Workers'' Party of Korea

Central Committee and the DPRK government, China''s News Agency (Xinhua) stated.

During the visit, Jiabao is scheduled to discuss with his North Korean counterpart the

possibility of resuming six-party talks on North Korean nuclear issue in addition to views

on furthering China-DPRK ties, including Chinese support for North Korea. China is the

most important source of economic aid and diplomatic support for the reclusive

communist regime in Pyongyang, and has hosted stalled six-nation nuclear disarmament

talks that also involve the U.S., Japan, South Korea and Russia. Under the six-nation

framework, North Korea pledged in September 2005 to dismantle its nuclear programs in

exchange for pledges of energy assistance and diplomatic concessions. Washington has

earlier said it is prepared to talk directly with Pyongyang in order to bring it back to the

six-nation talks, which are hosted by China.

"The two sides will sign a number of cooperative documents during Premier Wen's visit," Foreign Ministry spokeswoman Jiang Yu said at a regular briefing on Tuesday.

Wen will pay an official goodwill visit to the DPRK from October 4 to 6 at the invitation of the DPRK Workers' Party Central Committee and the government.

Wen is set to meet with DPRK leaders on bilateral relations and other issues of common concern. He will also attend commemorative events for the China-DPRK Friendship Year, which coincides this year with the 60th anniversary of the two countries' bilateral diplomatic relations.

"Premier Wen's visit is an important part of the programs marking the 60th anniversary of bilateral relations and it is also a return visit following DPRK Premier Kim Yong Il's Beijing tour in March," Jiang said.

She said the aims of Wen's visit are "summarizing the past and mapping out the future."

The DPRK was among the first countries to establish diplomatic relations with China -- on Oct 6, 1949, only days after the People's Republic of China was founded.

Jiang said China has always provided assistance to the DPRK to help the country with its economy and peoples' livelihoods.


On the Korean Peninsula situation, Jiang said it is in the shared interest of relevant parties to achieve a denuclearized Korean Peninsula.

China, as always, maintains the issue be resolved through dialogue and negotiation, Jiang said.

"The six-party talks are an effective and practical way to realize the denuclearization of the Peninsula," Jiang said, calling for positive efforts from all concerned parties.

Initiated in 2003, the talks involve China, the DPRK, the United States, the Republic of Korea, Russia and Japan. The last round took place in Beijing last December.

• China ready to contribute more to United Nations (7th October)

China has stressed the importance of following a "capacity to pay" principle, amid

considerations by the United Nations (UN) to determine member states' dues to its

budget.

Liu Zhenmin, China's deputy permanent representative to the UN, made the statement at

the meeting of the Fifth Committee of the 64th Session of the UN General Assembly for

determining member states' dues to the organization's budget in 2010-12.

"China stands ready to make an even greater contribution to the UN on the basis of the

capacity to pay, as our economy continues to grow," Liu said.

China's contribution to the UN has risen from 0.995 percent before 2000 to 2.667 percent

in the 2007-09 period. According to current methods of calculation, that figure may rise

to 3.189 percent in the 2010-12 period, which is about a 20-percent increase over the

previous three-year period.

Still, despite its rapid economic development and impressive gross domestic product

figures, China has the world's largest population and faces enormous challenges at home,

Liu said.

In 2008, China's per capita gross domestic product stood at $3,000, ranked about 100th in

the world and still far from the average per capita gross national income of $7,119 (the

threshold), he said.

"By the standard of the World Bank, which considers those living on less than $1.25 a

day as poor, the Chinese population living at the poverty level will total 250 million, the

second largest number in the world," he said.


"Economic development, poverty eradication and the realization of modernization remain

daunting challenges for China," Liu said.

"The evaluation of China's capacity to pay should not be conducted without taking into

account China's specificities."

On Monday, China's UN Ambassador Zhang Yesui also underscored the importance of

women's participation in the peace-building process of their own post-conflict countries.

"Peace in post-conflict countries is often fragile. Without the effective participation of

women, there cannot be lasting peace and long-term social stability," Zhang told an open

debate of the UN Security Council.

"Women should fully enjoy the right to decision-making and participation in post-conflict

peace-building and development of their countries," he said.

"They can provide staunch support for hard-earned peace."

Post-conflict countries are often faced with numerous tasks and difficulties, Zhang said,

urging the international community to provide "generous financial and technical support

and help enhance capacity-building".

"While providing external support, the international community and donors should

respect the will of the recipient countries, rely on local governments, fully tap the

enthusiasm of local women and girls and encourage them to engage in the peace-building

process as masters of their countries," the ambassador said.

At Monday's meeting, the Security Council also unanimously adopted resolution 1889,

urging all countries and international bodies to take further steps to ensure the full

participation of women in conflict resolution and peace-building

• Chinese vice president Xi Jinping visit 5 European nations October

7-21 Chinese Vice President Xi Jinping on Wednesday departed for tours to five European

nations. The fortnight visit will take Xi to Belgium, Germany, Bulgaria, Hungary and

Romania, according to China''s News Agency (Xinhua). During his stay in Belgium, Xi

will attend a "Europalia-China" art festival. He will also be present at China''s guest of

honor events at 2009 Frankfurt Book Fair when he visits Germany. During his tours,

Chinese Vice President will hold talks with senior officials in the countries he will visit


on bilateral relations and a number of international issues of common concern. Xi is

making the visit at the invitations of Belgian Prime Minister Herman Van Rompuy,

German Chancellor Angela Merkel, Bulgarian Vice President Angel Marin, Hungarian

President Solyom Laszlo and Romanian President Traian Basescu.

• China, Belgium vow to seek stronger ties China will work with Belgium to improve political trust and substantial cooperation to

make new progress in bilateral ties, Chinese Vice President Xi Jinping said in Brussels

Wednesday.

During talks with Belgian Prime Minister Herman Van Rompuy, Xi put forward a four-

point proposal to cement bilateral ties:

-- To maintain high-level contacts and political dialogues. China welcomes King Albert

II to participate in the 2010 Shanghai Expo and hopes the governments, parliaments and

political parties of the two countries to increase exchanges for more understanding and

trust;

-- To consider the core interests and concerns of each other. China hopes the two sides

would deal with the bilateral relations from a strategic and long-term perspective,

properly handle disputes based on principles of mutual respect, equal treatment and

noninterference in each other's internal affairs, to enhance the development of the

bilateral ties in a healthy and stable way;

-- To actively boost tangible cooperation, including investment and technological

cooperation. China welcomes Belgian companies to invest in China and encourages its

own entrepreneurs to do business in Belgium;

-- To increase human and culture exchanges. China will further promote exchanges with

Belgium in various sectors including culture, education and tourism. Van Rompuy said

Belgium would work with China to push forward exchanges and cooperation in all areas.


He spoke highly of China's stance in handling the current global financial crisis and the

climate change, and pledged to strengthen coordination with China on regional and

international issues.

He reaffirmed that Belgium would always adhere to the one-China policy and the

principle of noninterference in other country's internal affairs, and would not support any

separatist activities.

Following the talks, Xi and Van Rompuy attended the signing ceremony of a number of

agreements on science, finance and trade cooperation.

Xi arrived here Wednesday afternoon for an official visit to Belgium, the first leg of his

European tour. He will also visit Germany, Bulgaria, Hungary and Romania.

• China’s Vice president Jinping meets European Commission President(8th

October)

Chinese Vice President Xi Jinping met Thursday with European Commission President Jose Manuel Barroso on bilateral ties, vowing to enhance cooperation between the two sides. Xi, who congratulated Barroso for his reelection, said China appreciated his efforts in the past five years on boosting development of the comprehensive and strategic partnership between China and the European Union. China believes, too, that the bilateral ties would advance further in a healthy and stable way within the new term of Barroso, Xi said.

Xi said China and the EU, who have formed a pattern of comprehensive, wide-range and multilevel cooperation, have become two important forces to help shape the future international structure into a multipolar world.

Xi put forward a three-point proposal to further strengthen bilateral relations between China and the EU.

First, to firmly stick to the strategic direction of their bilateral ties. Xi said that to promote the growth of China and the EU’s comprehensive and strategic partnership accords with the common interests of both sides and is a right choice benefiting the peoples of China and the EU and the international community as a whole.


Second, to always adhere to the belief of mutual benefit and win-win cooperation. The two sides should mull over tangible ways to properly handle disagreements, to foster new cooperation and to firmly stem the torrent of trade and investment protectionism, Xi said.

Third, to always adhere to the principle of equality and mutual trust. The Sino-EU relations will remove various obstacles and make progress as long as both sides stick to the principle of “mutual respect and mutual trust, consultation on an equal footing, and seeking common ground while shelving differences,” Xi said. It will also be important to bear in mind the overall interests of bilateral relations and respect each other’s major concerns, Xi said.

China is ready to work with the EU to build Sino-EU relations into a model of peaceful coexistence and friendly exchanges between countries that transcend civilizations, social systems and development models, Xi said.

Barroso offered congratulations on the success of China’s impressive National Day celebrations on October 1, speaking highly of the great achievements of China in the last 60 years.

Sino-EU relations have seen remarkable achievements, he said, adding that the past five years have witnessed frequent top-level exchanges, fruitful personnel and cultural exchanges, and rapid development of economic and trade cooperation.

China and the EU have seen increasing common ground on global issues, including the international financial crisis and climate change, and both sides oppose protectionism and champion a just international order, Barroso said.

In the next five years, the EU will continue developing and promoting the EU and China’s comprehensive and strategic partnership and strive to handle disagreements in a mature and responsible spirit so as to further develop bilateral ties, he said.

Barroso also wished the forthcoming Europalia Chinese Art Festival a great success.

Xi arrived in Brussels Wednesday for an official visit to Belgium, the first leg of his five-nation European tour. He will also visit Germany, Bulgaria, Hungary and Romania.

• China urges neighbors, US to talk to DPRK(10th October)

The Democratic People's Republic of Korea (DPRK) wants to ease a standoff with the

United States, Japan and the Republic of Korea (ROK), Chinese Premier Wen Jiabao told

East Asian neighbours at a summit focused on Peninsula nuke issue and on regional

integration.

At the meeting on Saturday, China, Japan and the ROK vowed to seek an early restart to

six-party talks aimed at ending the DPRK's nuclear weapons ambitions, and to push an


ambitious idea to eventually create an "East Asian community", promoted by Japan's new

prime minister, Yukio Hatoyama.

Wen, who was in the DPRK last Sunday to Tuesday, said Pyongyang wanted to ease

strains, following sanctions and months of contention sparked by its second ever nuclear

test in May.

"The DPRK does not only hope to improve relations with the United States, it also hopes

to do so with the ROK and Japan," Wen told a news conference after the meeting in

Beijing with Hatoyama and the ROK's President Lee Myung-bak.

Wen said the chance to revive six-party nuclear disarmament talks including Pyongyang

would not last.

"If we miss this opportunity, then we may have to make even more efforts further down

the road," he said.

The three East Asian leaders also vowed to work together for closer regional economic

integration, aiming eventually for a bloc something like the European Union.

"The three countries remain committed to the development of an East Asian community

based on the principles of openness, transparency and inclusiveness as a long term goal,"

said a joint statement the leaders issued at the meeting's end.

They underscored the growing pull for the three Asian powers to set aside some of their

friction and rivalry as they struggle to surmount the global economic slump.

The joint show of unity may also increase pressure on DPRK to restart nuclear

negotiations.

Wen said the three nations would "join hands to address the international financial crisis,

climate change and other global challenges".

The combined GDP of Japan, China and the ROK accounts for 16 percent of the world's

total output, with Japan and China respectively the world's second- and third-biggest

economies.

In April, a month before its second nuclear test, the DPRK said the six-party talks

between the two Koreas, China, Japan, Russia and the United States were defunct. It

walked away from the talks last December.

• Trade, climate top US-China agenda (10th October)


The White House announced on Thursday that President Barack Obama's first trip to

Asia as president will begin in Japan and take him to Singapore, China and the Republic

of Korea. But the US president will not visit Indonesia, his home for four years when he

was a child.

Obama will be in Beijing and Shanghai between Nov 15 and 18.

During the China leg, President Hu Jintao will likely urge his US counterpart to abandon

trade protectionism, said Chinese experts yesterday. Obama is expected to push China to

reach a bilateral climate change agreement.

Obama's four-country Asian tour will include the third round of talks between the

Chinese and US presidents. The pair met in London in April and in New York in

September.

In the wake of an increasing number of anti-dumping cases against China in the US,

"anti-protectionism is a priority that Hu would like to talk about with Obama," said Yuan

Peng, head of the institute of US studies affiliated to China Institute of Contemporary

International Relations.

During his recent meeting with Obama in New York, Hu warned the US that "similar

cases should not happen again", referring to Obama's approval of a 35 percent tax on

Chinese tire exports to the US.

The US is understood to be seeking other punitive measures against China's exports.

"Beijing will voice clearly its concerns at this time," said Yuan, adding that Washington

and Beijing will probably also address such topics as nuclear nonproliferation, regional

security and the global financial crisis.

Zhou Qi, a senior US expert with the Chinese Academy of Social Sciences, said the US

will continue to prod China toward a bilateral agreement on climate change.

"The US will push China to set a carbon-emissions cap, but it's hard for the Chinese

government to do so as a developing country," Zhou said.

But Zhou predicted China and the US may reach a consensus on a more ambitious carbon

emission schedule and cooperation mechanism with the international community.

"That will help Obama persuade politicians and opposition parties in the US to announce

even more radical emission-cut plans," said Zhou. "The US is hoping for a concrete

emission-cut goal from China."


"At this historic juncture, the world is expecting China and the US to take the lead," said

Zhou, adding that the international community will reach a deal after the world's two

biggest greenhouse emitting nations have forged an agreement of their own.

She said China can clearly identify its national interests in any agreement.

Pang Zhongying, a professor with Renmin University of China, expects climate change

will top the agenda when Obama meets Hu.

"So, during the coming weeks, their colleagues should work around the clock to iron out

any differences. Then, I think, the two sides will be able to announce a consensus on

climate change," said Pang.

He said the scheduled four-country Asia tour in November will showcase Obama's Asian

policy after months of consideration since he took power.

Pang said Obama does not want too much focus placed on the fact that he lived in

Indonesia as a child, so skipping that country makes sense.

Obama and his mother moved from Hawaii to Jakarta, Indonesia, when he was 6. They

returned to the US when he was 10.

Obama's tour kicks off in Japan on Nov 12 and 13, where he will meet twice with new

Prime Minister Yukio Hatoyama. The White House said the visit with "this key ally" will

cover economic, security and other issues.

After Tokyo, Obama will fly to Singapore to attend the annual Asia-Pacific Economic

Cooperation meeting, between Nov 13 and 15.

Following Singapore, Obama will travel to China, where he will visit both Beijing and

Shanghai between Nov 15 and 18.

Obama's final stop will be in the Republic of Korea on Nov 18-19 where he will meet

President Lee Myung-bak for the third time. The Democratic People's Republic of Korea

will be among items on the agenda, said the White House.

• Chinese vice president arrives in Germany(10th October)

Chinese Vice President Xi Jinping arrived in the eastern German city of Dresden

Saturday morning to continue his Europe tour. In a written statement released upon his

arrival at the airport, Xi said China and Germany have enjoyed long-term friendship, and

the relations have made new progress in recent years with fruitful cooperation in the


fields of politics, trade and education as well as coordination on international and

regional issues. He said Sino-Germany relations are facing new opportunity for further

development.

"I am looking forward to exchanging views with German leaders on bilateral ties and

other issues of common concern, and trying to have a better understanding of Germany

and pushing forward the relationship," he said.

Xi will arrive in Berlin later in the day. In the German capital, he will hold talks with

Chancellor Angela Merkel and meet with President Horst Koehler.

He will also attend the opening ceremony of the Frankfurt Book Fair.

Germany is the second leg of Xi's tour. He will also visit Bulgaria, Hungary and

Romania.

• Chinese top political advisor pledges closer ties with Nepal

(13th October)

China's top political advisor Jia Qinglin on Monday vowed to boost ties with its neighbor

Nepal as Nepal's opposition party chief visits Beijing. Your visit to China will have

positive and far-reaching impact on relations between the two countries as well as

relations between the two parties," said Jia, chairman of the National Committee of the

Chinese People's Political Consultative Conference (CPPCC).

Jia made the remarks while meeting with Prachanda, chairman of the Unified Communist

Party of Nepal (Maoist) (UCPN-M). Jia is also member of the Standing Committee of the

Communist Party of China (CPC) Central Committee Political Bureau.

The relationship between China and Nepal has developed healthily with joint efforts of

both sides since they established diplomatic ties, said Jia, adding that the two countries


set an example for treating each other on an equal foot, friendly co-existence and

mutually-beneficiary cooperation.

Jia appreciated Nepal's firm support on issues concerning China's core interests, saying

China hopes relevant parties in Nepal could advance peace process.

China is willing to work with Nepal in deepening substantial cooperation, enhancing

party-to-party communication and pushing forward China-Nepal neighborly partnership,

Jia said.

Prachanda spoke highly of China's foreign policy of independence and peace, saying his

party would support the efforts China has made to safeguard sovereignty and territorial

integrity.

The UCPN-M will learn from the CPC's experience in governance through inter-party

exchanges to make joint contribution to our traditional friendship, he said.

• China voices "strong dissatisfaction" over Indian leader's visit to disputed region.(13th October)

China on Tuesday expressed its "strong dissatisfaction" over an Indian leader's visit to a

disputed border region.

"China is strongly dissatisfied with the visit to the disputed region by the Indian leader

disregarding China's serious concerns," said Chinese Foreign Ministry spokesman Ma

Zhaoxu.

Ma said China and India had never officially settled demarcation of their border, and

China's stance on the eastern section of the China-India border was consistent and clear-

cut.

"We demand the Indian side address China's serious concerns and not trigger disturbance

in the disputed region so as to facilitate the healthy development of China-India


relations," Ma said.

Indian media reports said Prime Minister Manmohan Singh toured and addressed an

election rally in the so-called "Arunachal Pradesh".

• China's Hu meets Russia's Putin, painting rosy future(14th October)

Chinese President Hu Jintao on Wednesday met with visiting Russian Prime Minister

Vladimir Putin, hailing fresh development of bilateral relationship and vowing closer

collaboration. "Russia is one of the top agenda on China's diplomacy as we pay much

attention to relations with Russia," Hu told Putin in their half an hour meeting in

Diaoyutai State Guesthouse.

Hu said this year was significant for China-Russia relations as both countries

celebrated their 60th anniversary of the establishment of diplomatic ties.

Russia was the first country to establish diplomatic relations with China, days after the

People's Republic of China was founded on Oct. 1, 1949.

As an important milestone in deepening relations, both countries established strategic

partnership of coordination in 1996.

Hu said this partnership had reaped substantive benefits to both peoples and worked

for the world peace, stability and prosperity.

He underscored the mutual support both countries offered to each other on issues

concerning their core interest and close coordination and cooperation on international and

regional affairs.

"China would like to work more closely with Russia to enhance political trust and

strategic coordination," Hu said.

Chinese President particularly called for both countries to boost cooperation in energy,

high-tech and culture.


"Let's work together to take strategic partnership of coordination to a higher level," Hu

said.

Putin said his China visit was very successful, marking "an important step forward" in

bilateral cooperation.

He said close exchanges between leaders of both nations contributed a lot to bilateral

relations, which witnessed rapid progress in trade, energy and culture.

Putin said the "Year of Russian Language" went on well in China and looked forward

to the "Year of Chinese language" in Russia next year.

During the "Year of Russian Language" in China, the two nations held more than 200

cultural exchange activities in about 20 provinces, autonomous regions and

municipalities in China.

Putin said he was satisfied with Russia's ties with China and would like to advance the

relations.

On Tuesday, Chinese Premier Wen Jiabao hosted a red-carpet welcome ceremony for

Putin, who is on his first official visit to China since taking office in May 2008. They

held closed-door talks and witnessed the signing of 12 agreements, including the

agreements on natural gas and oil.

• China's premier calls for closer co-op within SCO members (14th

October)

Chinese Premier Wen Jiabao said here Wednesday China is ready to work with other

member states of the Shanghai Cooperation Organization (SCO) to address challenges

and share opportunities to advance regional peace and stability in a sustained way. Wen

made the remark at the eighth prime ministers' meeting of the SCO, which groups China,

Russia, Uzbekistan, Tajikistan, Kyrgyzstan and Kazakhstan. Mongolia, India, Iran and

Pakistan are observers to the regional organization.


In his speech at the meeting, Wen spoke highly about the positive results the SCO

members achieved in their joint response to the international financial crisis. Wen pointed

out the world is currently undergoing enormous development, changes and readjustment.

The international financial crisis, the "three forces" of separatism, terrorism and

extremism, drugs and cross-border crimes were threatening peace, stability and

development of the region, Wen said. He said in face of these challenges, countries in the

region had shown greater impetus to deepen cooperation and unite for self development.

"The Shanghai Cooperation Organization should play an even bigger role in enhancing

solidarity and mutual support of its member states and advancing regional cooperation,"

Wen said.

Wen emphasized that China will adhere to the policy of treating its neighbors as partners.

China will stick to the open-up strategy based on mutual benefit and win-win and

continue to contribute to regional development through its own growth.

Wen said China attaches high priority to the development of the SCO and regards other

member states as good neighbors, good friends and good partners.

The eighth SCO prime ministers' meeting was held in the Great Hall of the People in

Beijing Wednesday. Prime ministers from the six SCO member states and representatives

from the observers states attended the meeting. Representatives from Afghanistan also

attended as guests of the host country, China.

The meeting reviewed the progress SCO had made in economic and cultural cooperation

over the past year. The leaders exchanged views on implementing the treaty of long-term,

good-neighborly friendship and cooperation of the SCO member states and the

Yekaterinburg summit consensus. They also exchanged views on deepening practical

cooperation in various areas and jointly addressing the international financial crisis.

Wen said the leaders of SCO member states had reached broad consensus at the meeting,

which he called a total success.

• Premier: China to maintain high-level exchanges with Iran (15th October)

China would maintain high-level exchanges with Iran, said Premier Wen Jiabao Thursday

in a meeting with visiting Iranian First Vice President Mohammad Reza Rahimi in


Beijing after the eighth prime ministers' meeting of Shanghai Cooperation Organization

(SCO).

"The Sino-Iran relationship has witnessed rapid development, as the two countries'

leaders have had frequent exchanges, and cooperation in trade and energy has widened

and deepened," Wen said at the Great Hall of the People.

Wen said China would maintain high-level exchanges with Iran, enhance mutual

understanding and trust, promote bilateral pragmatic cooperation and coordinate closely

in international affairs.

China would continue playing a constructive role in seeking a peaceful solution to the

Iranian nuclear issue, Wen said.

Rahimi said developing the bilateral relationship was the will of both the Iran

leadership and people.

Iran hoped to further deepen the cooperation in trade and energy, strengthen

coordination with China in international affairs and promote healthy and steady bilateral

relations, he said.

• China, Pakistan pledge to strengthen ties (15th October)

Chinese Premier Wen Jiabao and Pakistani Prime Minister Yousuf Raza Gilani met Thursday in Beijing and pledged further efforts to enhance bilateral ties.

Wen said the China-Pakistan friendship had weathered the changes on the world stage and the strategic cooperative partnership was maintaining a good momentum.

China understood and supported the Pakistani government in framing and carrying out security and development strategies in line with its state interests and circumstances, said Wen.

China was willing to boost cooperation in finance, hydro-electricity, education, culture, railway, road transport and the fishing industry.


China considered ties with Pakistan one of the priorities in foreign relations and it hoped to continue high-level exchanges and increase coordination on major international and regional issues of common concern, such as terrorism.

Gilani said China was Pakistan's most reliable friend and strategic cooperative partner.

Pakistan was willing to work with China to boost cooperation in economy and trade, agriculture, rail and road transportation, he said.

Gilani reiterated Pakistan's firm stand in supporting China on issues relating to Taiwan, Tibet and Xinjiang.

At the invitation of Wen, Gilani arrived in China Monday 13th October for a four-day official visit. This is Gilani's first visit to China as Pakistani prime minister.

• Bloc looks to boost cross-border trade (October 15th)

A bloc of nations that includes China and five Eurasian countries pledged to boost cross-

border trade yesterday and explore the shared use of each other's currencies.

At the 8th annual prime ministers' summit in Beijing, the Shanghai Cooperation

Organization (SCO) member states - China, Russia, Kazakhstan, Kyrgyzstan, Tajikistan

and Uzbekistan - broadly discussed enhancing economic ties.

Though the summit included representatives from observer nations Mongolia, Pakistan

and Iran as well as guest country Afghanistan, Premier Wen Jiabao did not mention the

ongoing wars in Afghanistan and Pakistan. Chaired by Wen, the meeting created "a

unique opportunity for exchanging opinions and working out a specific plan", he said.

He said all member states agreed to open a "special SCO bank account to resolve the

financing problem of cooperation on large projects".

The agreement also called for finance ministers and central bank governors from the

countries to meet later this year in Kazakhstan to explore the use of each member states'

currencies in intergroup trade.

"All parties agreed to make trade easier, complete infrastructure at each country's borders

and improve work efficiency at customs to facilitate commodity flow within the region,"

Wen said.

Russian Prime Minister Vladimir Putin urged the SCO, established in 2001, to "use the

potential of our cooperation for post-crisis development".


Experts said one key aspect that needs to be improved for an efficient cross-border trade

within the bloc is the "bottleneck in transportation".

China's trade volume with Tajikistan, for example, reached $470 million in the first half

of 2009. It was only about $69 million five years ago, according to the Ministry of

Commerce.

But the figure could rise if the two countries were connected by a rail-line, said Zhang

Ning, an analyst at the Institute of Russian, East European & Central Asian Studies of the

Chinese Academy of Social Sciences. Zhang added that China has one railway link with

Kazakhstan, the only connection to all SCO Eurasian member states.

One footnote to the summit was a letter posted on www.alemarah.info by the Taliban that

urged the SCO to help the radical Islamic movement "liberate" the country from US

troops.

It called on summit participants "to render assistance ... (for) the liberation of the people

(Afghans) and countries of the region from the claws of the colonialists and take a

decisive stand regarding the West's invasion of Afghanistan," Reuters reported.

Masood Khan, Pakistan's ambassador to China, on Friday also called for the SCO to "stay

engaged" in the issue of Afghanistan.

Experts have said the SCO would never become a military alliance, though combating

terrorism was one of its original missions. They said pursuing economic development is

the organization's top issue.

Chen Yurong, director of the SCO Research Center of the Institute of International

Studies, said economics was the "major issue" for the organization, although she had

previously predicted that yesterday's summit would discuss regional peace.

Meng Xiangqing, a professor of the Beijing-based National Defense University, said:

"Anti-terror is one of the most important topics."

But he also pointed out that it is "impossible to establish a military alliance like NATO".

• Chinese vice president pledges to further bilateral ties with Bulgaria(15th October) Visting Chinese Vice President Xi Jinping said here Thursday that China values its friendship with Bulgaria and wishes to build bilateral ties. Xi made the comments during a meeting with Bulgarian President Georgi Parvanov.


Noting that Bulgaria was the second country in the world to forge diplomatic ties with China, Xi spoke highly of China-Bulgaria relations over the past six decades. Xi said reasons why the two countries could share a long-term friendship included maintaining mutual respect and mutual benefit, non-interference in each other's internal affairs, and bridging differences through consultation and dialogue. He also said both leaders viewed the bilateral relationship from a strategic and long-term perspective and exchanges were promoted between parties, local provinces and peoples. Regarding relations between China and the European Union, Xi said it benefited the both peoples and helped safeguard world peace and development. "As long as the two sides take a strategic and long-term perspective and keep an objective and inclusive attitude, the relationship would reach new heights," he added. Parvanov agreed with Xi and pledged to work with China to enhance cooperation and further the relations between the two sides. He reaffirmed that Bulgaria would adhere to a one-China policy. The president also confirmed his participation in the opening ceremony of the Bulgarian Hall during 2010 Shanghai Expo'. On the same day, Xi met with Bulgarian Prime Minister Boiko Borisov. During their meeting, Xi said the two countries have seen expanded cooperation in recent years and enhanced coordination in regional affairs. Xi expressed gratitude to Bulgaria for its adherence to a one-China policy and its support for China on issues concerning Taiwan, Tibet and Xinjiang. He also thanked the Bulgarian side for its invitation last year to Chinese children from the earthquake-stricken Sichuan province for recuperation. "China takes Bulgaria as a sincere and reliable partner, and this stance will never change whatever the international situation," Xi said. He encouraged the enterprises of the two countries to increase contacts and investment, and explore new channels and areas for further cooperation. Hailing the 60th anniversary of bilateral diplomatic ties, Borisov said Bulgaria and China shared traditional friendship, and no matter which party in Bulgaria took power, the country would not change its friendly policy on China. It was a good time for cooperation with China and Chinese entrepreneurs should be encouraged to invest in Bulgaria, he said.


The Chinese vice president arrived here on Wednesday for the third leg of his five-nation European tour. He has visited Belgium and Germany, and will also visit Hungary and Romania

• Beijing urged to do more to help with terror fight(16th October) Afghanistan and Pakistan yesterday appealed for more help from China and the

Shanghai.Cooperation Organization (SCO) to support their ongoing struggle against

terrorism.

Capacity building, reconstruction, poverty-relief and intelligence exchange are the areas

in which China and the SCO can help, Afghan Second Vice-President Mohammad Karim

Khalili and Pakistani Prime Minister Yousuf Raza Gilani told China Daily.

Experts agreed that China should offer more support in those areas but urged Beijing to

keep away from military engagement, because dispatching more troops will not resolve

the problem.

"The western countries are working to train the security forces in Afghanistan and help

the Afghans have the ability to help themselves. The SCO can play a role in building

capacities" in training national police and national security forces, Khalili said.

He added that fighting terrorism in Afghanistan "has always been" a shared responsibility

and task of the world, because, without the effort, the "whole region (Central Asia) will

be affected".

Khalili, 59, said ensuring peace and security depends most on building civilian

infrastructure and increasing military and civil reconstruction efforts.

The vice-president said Afghanistan needs the SCO to help eliminate poverty, the "root

cause of rampant terrorism".

Gilani, who became the Pakistani prime minister in March 2008, also called for more

help from China in intelligence work.

"There should be more exchange of intelligence and information between the two

countries," the 57-year-old said.

Islamabad started a major anti-terror mission in the Swat Valley region in northern

Pakistan in May.


Even though the mission claimed some significant achievements, such as the killing of

former Taliban leader Baitullah Mehsud in August, some major cities in the area have

seen a rise in terror attacks.

Militants yesterday launched several attacks on police, in Lahore in the Pakistani

heartland and in the troubled northwest, killing 24 people.

"One thing I will show you (that) we have the ability, we have the will to fight against

terrorism," Gilani said. He stressed anti-terrorism was his "priority number one".

Gilani said the death of Mehsud signaled a "new thrust" for his government's effort.

"The SCO can play an extremely important role in combating terrorism and extremism,"

Gilani added.

The SCO - whose members include China, Russia, Tajikistan, Kyrgyzstan, Kazakhstan

and Uzbekistan - had its eighth prime ministers' meeting in Beijing on Wednesday. Both

Gilani and Khalili attended - as representatives from an observing country and a guest

nation.

Chinese experts said China should have a comprehensive plan to help neighboring

countries combat terror.

Dong Manyuan, an anti-terror expert at China Institute of International Studies, said

Beijing could help Pakistan improve the armament of government forces and strengthen

collaboration in intelligence exchange.

"The Chinese government should offer help to settle war refugees in Pakistan," Dong

said, noting Islamabad's anti-terror mission had displaced about three million people.

He said Beijing should discuss the issue with SCO member states.

But he too cautioned against China getting involved militarily in Afghanistan.

"Relying solely on sending more troops to the region won't work because the key is to

resolve the problem of development," Dong said.

The top US and NATO commander in Afghanistan, General Stanley McChrystal, has

recommended sending at least 40,000 additional troops and trainers as part of a beefed-up

counterinsurgency strategy.

Washington already has 65,000 troops there, a figure expected to reach 68,000 later this

year. Other nations, mainly NATO allies, have some 39,000 troops in the country,

Reuters reported.


Wang Shida, an expert on Afghanistan studies at China Institute of Contemporary

International Relations, said the SCO "has no consensus on sending troops" to Kabul.

The SCO is a regional mechanism framework, which offers mainly non-military help to

Afghanistan, he said, although fighting terrorism was originally the prime mission of the

SCO.

China is engaged in reconstruction efforts in Afghanistan, but has no military

involvement.

• Chinese vice president, Hungarian PM meet on bilateral ties(17th October)

Visiting Chinese Vice President Xi Jinping met here Friday with Hungarian Prime

Minister Gordon Bajnai on bilateral ties.

Xi said the year 2009 is of great significance for both China and the Chinese-

Hungarian relations, as it marks the 60th anniversary of the founding of the People's

Republic of China as well as the establishment of diplomatic ties between the two

countries.

Xi expressed the hope that his visit would further strengthen the traditional friendship,

upgrade mutually beneficial cooperation and push forward the friendly and cooperative

partnership between the two countries.

Since the establishment of the friendly and cooperative partnership between China and

Hungary in 2004, bilateral ties have turned to a new page, marked with frequent high-

level contacts, enhanced mutual political trust, fruitful economic and trade cooperation,

strengthened personnel and cultural exchanges, and close coordination on international

and regional issues, said the vice president.

The friendship between China and Hungary has stood the tests oftime and the two

countries are good friends and partners joined together in sincere cooperation, Xi added.

The Chinese side appreciates the fact that the new Hungarian government treasures its

ties with China and makes developing these ties one of the priorities in its foreign policy,

he continued.

Xi said China also values its relations with Hungary, and is willing to take the

opportunity of the 60th anniversary of bilateral diplomatic relations, to push forward the

bilateral mutually beneficial cooperation in various fields so as to bring benefit to the

people of both countries.


The Chinese government will continue encouraging Chinese enterprises to invest in

Hungary and welcomes Hungarian companies to exploit the Chinese market, so as to

further promote the mutually beneficial cooperation in fields like finance, tourism,

agricultural technology and infrastructure construction, he said.

The Chinese side welcomes Hungary's decision to set up a consulate general in

southwest China's Chongqing city and Hungarian companies to take part in the China

High-Tech Fair scheduled for November in Shenzhen. China also appreciates Hungary's

support for and active participation in the Shanghai World Expo 2010, he said.

Xi also voiced China's appreciation to Hungary's efforts to enhance the relations

between China and the European Union, and expressed hope that the Hungarian side

would continue to play an active role within the European Union to push forward the

China-EUrelations.

Bajnai said the two countries have enjoyed good relations in the past 60 years, which

he said has laid a solid foundation for further development of bilateral ties.

The prime minister said China is currently Hungary's most important economic partner

in Asia, and that amid the current complicated global financial and economic situation,

Hungary is ready to become a firm partner of China and to join hands with China in

opposing trade and investment protectionism.

The Hungarian government is willing to provide conveniences for Chinese companies

which intend to invest in Hungary and Europe, he said.

Following the talks, the two leaders attended the signing ceremony for documents on

bilateral cooperation.

Xi, who arrived in Budapest on an official visit to Hungary on Thursday, also met

Friday with former Hungarian Prime Minister Medgyessy Peter.

Hungary is the fourth leg of Xi's Europe tour. He has already visited Belgium,

Germany, Bulgaria and will also visit Romania.

• Neighbors vow to settle border issues Premier Wen Jiabao and Vietnamese Prime Minister Nguyen Tan Dung on Friday promised to properly handle the border and South China Sea issues. China attaches great importance to its ties with Vietnam, Wen said.


Economic front

• China retail sales boom in National Day Holiday

China's retail sales hit 14 billion yuan (about 2 billion U.S. dollars) during the first three

days of the National Day Holiday, up 15 percent from the same period of last year, the

Ministry of Commerce said Sunday.

The country's National Day Holiday this year, eight days long, starts on Oct. 1.

From Oct. 1 through Oct. 3, China's 1,000 key retailers reported a total of 14 billion

yuan in sales revenues, with household electrical appliances, jewelry, autumn and winter

clothing, and cars leading the consumption.

Suning Appliance, a leading chain retailer of home appliances, reported a 91.7 percent

increase in sales revenues on Oct. 2 year on year, and up 25.8 percent for the first three

days of the Holiday.

This was partly due to a policy approved by the State Council, the Cabinet, in June this

year, aiming to spur domestic consumption by subsidizing buyers of cars and household

appliances, according to the ministry.

For example, consumers can first sell their old household appliances to recycling

companies and obtain a certification card from the recyclers. Card holders then can

purchase new appliances with a 10 percent cut in prices when showing retailers the card.

Meanwhile, sales of unpacked moon cakes of more flavors, such as coffee, chocolate,

and even icecream are selling well, and at lower prices, when Chinese enjoy their Mid-

Autumn Festival on Oct.3, which overlapped with the holiday, according to the ministry.

• China attracts $853 billion FDI in three decades


China attracted a total amount of 852.6 billion U.S. dollars of foreign direct investment

(FDI) from1979 to 2008, making it the number one target for FDI among developing

countries, according to latest figures released by the National Bureau of Statistics.

The FDI flowing to China stood at merely 80,000 U.S. dollars in1979. The country has

endeavored to improve the foreign investment environment since the reform and opening

up three decades ago and the FDI began to surge into the world's most populous nation,

said the bureau.

The annual FDI increased to 40.7 billion U.S. dollars in 2000 and to 92.4 billion U.S.

dollars in 2008.

• China's largest oil producer vows to maintain prominence for 50 more years

Daqing Oilfield, China's largest oil producer wants to retain its prominence in the

country's petroleum industry for another 50 years.

Wang Yongchun, general manager of Daqing Oilfield Co. Ltd, said Tuesday the

oilfield would remain an important energy base and continue to contribute a large

proportion of China's energy supplies up to 2060.

Wang said factors such as adequate underground fossil resources, scientific progress

and well-trained personnel would help achieve this end.

In accordance with the overall sustainable development plan for the oilfield, it will be

capable of producing crude and gas equivalent to between 20 million tonnes and 25

million tonnes from its wells annually by 2060.

This future output will be supplemented by extra crude and gas equivalent totaling

between 15 million tonnes and 20 million tonnes from international trade and cooperative

development.


Discovered in 1959, development of Daqing Oilfield began in the next year. It has so

far produced more than 2 billion tonnes of crude, accounting for 40 percent of the

national total for the same period.

The oilfield produced 40.2 million tonnes of crude oil and 2.76billion cubic meters of

gas (equivalent to 2.76 million tonnes of oil) last year. The oilfield's accumulated proven

oil reserves total 6.36 billion tonnes.

An important subsidiary of China National Petroleum Corporation(CNPC), Daqing

Oilfield Co. Ltd. is one of the world's rare large sandstone oilfields and consists of 52

separate oil and gas fields, with the oil-bearing area extending 6,000 sq km. The current

oil recovery rate of major oilfields at Daqing exceeds 50 percent.

In addition to oil and natural gas exploration and development, Daqing Oilfield Co.

Ltd' s other businesses include engineering services and equipment manufacture. Its gross

assets total 207.2 billion yuan (30.47 billion U.S. dollars).

Fast expansion of the oilfield, which celebrated its 50th anniversary of discovery

Tuesday, during past years led to the founding of a totally new city bearing the same

name as the oilfield in Heilongjiang Province.

Daqing Oilfield stabilized an annual crude output of greater than 50 million tonnes

from 1976 to 2002, which was heralded as "a miracle" in the world history of oilfield

development, said Wang.

Along with other old oilfields, Daqing Oilfield has faced shrinking oil resources in

recent years, and was forced to adjust its oil and gas production goal early last year by

planning to stabilize its output of crude and gas equivalent at 40 million tonnes in years to

come, said Wang.

Wang is, however, upbeat about Daqing's oil resource potential. "Apart from the fossil

reserves at its headquarters in Songliao Basin, western Heilongjiang, Daqing Oilfield has

expanded its prospecting domain to other areas, including Hailar Basin in Inner


Mongolia, and has been blessed with an additional 200 million tonnes in proven

petroleum reserves in the basin alone since 2002.

"I hope that Daqing Oilfield Co. Ltd will have an extra 80 million to 100 million

tonnes added to its proven petroleum reserve total annually before 2060," said Wang.

"That is the most important resource foundation for Daqing to realize a sustainable

development."

Sun Zhi, chief of the technological development department of Daqing Oilfield Co.

Ltd, echoed Wang's opinion and emphasized the role of scientific progress.

"In the next 50 years, Daqing Oilfield will largely rely on scientific achievements to

realize pre-set targets for sustainable development," he said. "I believe triple oil

extraction technology based on polymers and microbe-based oil extraction technology

which is still being researched will help raise the current oil recovery rate to 60 percent,"

said Sun.

Given Daqing Oilfield's proven oil reserves, the increase of a percentage point in

recovery rate will mean an additional output of 50 million to 60 million tonnes of crude,

said Sun.

"Alongside improved oil recovery rate, it is also imperative for us to speed up the

tapping of deep reserves of natural gas and other non-conventional gases such as methane

in order to meet the pre-set target for sustainable development," said Sun.

A meeting was held in Daqing city Tuesday in commemorating the 50th anniversary of

the discovery of the oilfield. While addressing the meeting, Chinese Vice President Xi

Jinping called for increased efforts to tap China's oil resources to meet rising energy

demands.

He said the spirit of patriotism and dedication, which had nourished the development

of Daqing oilfield in the past five decades, must be followed in the oil production sector

generally.


• Tourism industry income during National Day holiday forecast to grow 25%

China's tourism sector is expected to reap a golden harvest during the upcoming National

Day holiday in early October.

Industry income for the holiday is forecast to increase 25 percent year on year.

Figures from China Tourism Academy (CTA) said Tuesday the sector's income is

expected to top 100 billion yuan (14.64 billion U.S. dollars) during the eight-day holiday

starting Oct. 1.

Domestic tourist population this year is expected to top 200 million, representing an

increase of 13 percent over the same period last year.

The tourists' average consumption is expected to be about 500 yuan, up from 448 yuan

in 2008, said the CTA.

The gradual recovery of China's economy coupled with government efforts to expand

domestic consumption has boosted the development of the sector.

China's tourism industry on average makes up 4 percent of the country's gross

domestic product, said the National Tourism Administration.

• China to develop Iraq's super-giant oilfield (9th October)

Iraq had signed a deal in Baghdad with British Petroleum (BP) and China National

Petroleum Corp (CNPC) to develop its super-giant Rumaila oilfield, according to Iraq's

oil ministry on Thursday.

The program, worth more than 15 billion U.S. dollars of investment, is a milestone in

Iraq's efforts to renew its struggling oil sector, said Asim Jihad, a ministry spokesman.

According to the 20-year contract, BP holds a 38 per cent stake in the venture, while

CNPC has a 37 per cent share. Iraq's State Oil Marketing Organisation controls the rest.


Currently, Rumaila has a capacity of 1.1 million barrels per day, almost half Iraq's total

output of 2.4m bpd. BP and CNPC aim to boost output to 2.85m barrels per day.

• Chinese, Japanese optimistic about China's economic prospect

Chinese and Japanese are optimistic about China's economic prospect in spite of the

financial crisis, according to a survey released here on Wednesday.

The survey showed that over half of the participants of the poll expected to see China's

further economic growth.

Jointly sponsored by China Daily and Genron NPO, a Japanese think tank, the survey

asked 1,589 lay people from China's five major cities and 1,008 Chinese university

students about issues concerning China-Japan relations. A thousand Japanese lay people

and 500 academics also took part.

The survey found perceptions of economic and trade relations between the two

countries had improved. About 47.5 percent of ordinary Japanese said China had been

"helpful" this year in fighting the global financial crisis. The percentage of Japanese

intellectuals who said Chinese economic growth was beneficial to Japan increased to 81.4

percent this year.

Cooperation on trade, investment and energy top the list of common concerns that

people in China and Japan want their leaders to discuss in the bilateral meetings.

Most respondents from each country said China-Japan relations were "important".

Among ordinary Chinese polled, 32.6 percent said they had "very good" or "relatively

good" impressions of Japan, and 45.3 percent of Chinese students had a positive

impression of Japan.

An overwhelming majority of the participants attached great importance to

governmental and non-governmental exchanges to improve bilateral relations.


Non-official exchanges were regarded by most people from both countries as an

essential way to strengthen relations. About 90.7 percent of the students and 86.2 percent

of the ordinary people in China as well as 95.8 percent of Japanese intellectuals and 74.8

percent of the Japanese ordinary citizens viewed it as "important" or "relatively

important".

Chinese and Japanese both learned about each other's country mostly through

television news and newspapers, the survey found.

The China-Japan joint opinion poll, launched in 2005 and conducted each year, aims to

facilitate communication and understanding between the two countries.

• Chinese premier stresses autumn, winter grain production (13th October)

Chinese Premier Wen Jiabao on Monday stressed the growing of autumn and winter

crops at an executive meeting of the State Council.

The Central Committee of the Communist Party of China and the State Council would

continue to strengthen the fundamental status of agriculture and boost the support for

agriculture and grain output, according to the meeting.

All provincial areas and departments should put into practice the central government's

policies, especially policies for the benefits of farmers, according to the meeting.

Despite uncommon droughts and the global economic recession, China was expected to

have a big harvest this year, underpinning the country's stable and fast economic growth,

according to the meeting.

Although China reported grain output increase for continuous years, the relationship

between grain demand and supply would be strained in the long run as China's

infrastructure for grain output was not stable, the grain planting efficiency was relatively

low and natural disasters were frequent, according to the meeting.


Autumn and winter planting was key to next summer's harvest and even next year's

harvest and measures should be taken to promote grain output, according to the meeting.

The measures should include promoting subsidy policies and stabilizing autumn and

winter planting acreage, stabilizing market prices to protect farmers' interests and

promoting technology services for farmers, according to the meeting.

• China welcomes foreign investment in publishing

Foreign publishing groups are welcome to invest in the Chinese publication industry,

China's General Administration of Press and Publication minister, Liu Binjie, said at the

Frankford book fair on Thursday, the People's Daily reported.

As of the end of 2008, the Chinese government has approved over 2,500 joint ventures

and foreign-invested companies in the country's print industry.

China has also started experiments to cooperate with foreign companies on book

publishing, and on newspaper and magazine production, in part because domestic

publishers are being corporatized and need more capital and business expertise.

• Chinese, Russian PMs urge G20's role in tackling global financial crisis(14th

October)

Chinese Premier Wen Jiabao and his Russian counterpart Vladimir Putin Wednesday

urged the role of the Group of 20 summit in tackling the global financial crisis and

improving world economic management.

They said in a joint communique inked following a regular meeting on Tuesday that

the G20 summit should support international cooperation and promote the reform of the

international financial system.


• China, Russia pledge to strengthen finance and banking cooperation

China and Russia pledged to enhance communication and cooperation concerning

finance, taxation and banking to deal with the global financial crisis, said a joint

communiqué released Wednesday by the two countries.

The communique was a fruit of the 14th regular meeting the prime ministers of the two

countries in Beijing on Tuesday. During the meeting, Chinese Premier Wen Jiabao and

his Russian counterpart Vladimir Putin witnessed the signing of 12 agreements, including

agreements on natural gas and oil.

• Zhu elevation step toward top role at IMF(14th October)

Bank of China Vice-President Zhu Min may soon take up a senior position at the nation's

central bank, in a move that will eventually prepare him for a crucial post at the

International Monetary Fund (IMF), people with knowledge of the matter said.

Though Zhu personally denied knowledge of his appointment as the vice-president of the

nation's top monetary authority - the People's Bank of China - the source confirmed that

the central bank had been officially informed about Zhu's new position.

The 56-year-old Zhu, a senior banker with ample international experience, might just

become the second person after Justin Lin, the current World Bank chief economist, to

play a key role at an international financial institution.

If it happens, his elevation as the deputy managing director at the IMF is expected to help

China have a bigger say in the process of reshaping the post-crisis global financial order.

Conventionally, officials recommended by the Chinese government to the IMF should

first take up a transitional position at the central bank, while the ones suggested for a role

at the World Bank usually assume a post at the Ministry of Finance at first, the source,

who declined to be named, told China Daily.


The likely appointment comes as China, together with other emerging markets, is calling

for a better hearing at international financial institutions so as to better reflect their

growing economic power.

"Zhu's appointment at the IMF will be a significant step toward breaking up the US and

Europe's dominant position in the international financial stage," said Pang Zhongying,

professor of international relations at Renmin University of China.

In response to mounting calls for reforming the governance structure at these multilateral

institutions, world leaders have reached a consensus that the emerging markets deserve a

louder voice that would match their growing clout.

At the IMF-World Bank annual meeting held in Turkey earlier this month, the IMF

promised to shift its quota shares toward dynamic emerging markets and developing

countries by at least 5 percent, from the over-represented to the under-represented

countries, before January 2011.

"Zhu taking up the post as the IMF deputy managing director on behalf of the Chinese

monetary authority will no doubt be a significant progress for the international financial

institutions' reform effort, and will play an active role in enhancing developing countries'

status in the global order," Fu Lichun, an analyst with Southwest Securities, said.

• Hong Kong, China shares rise amid strength in oil(15th October)

Shares in Hong Kong and China headed higher in early trading Friday, with oil-related

shares adding support to the market as crude prices climbed past $78 per barrel on

Globex. Hong Kong's Hang Seng Index was up 0.3% at 22,063.16. Shares of Cnooc Ltd.

• US says China not currency manipulator(16th October)

The U.S. government said on Thursday that China did not manipulate its currency against the U.S. dollar and has made significant contribution to the world economic recovery during the first half of 2009. "No major trading partner of the United States" met the standards identified by a U.S. act of manipulating their rates of exchange against the U.S. dollar to gain unfair competitive


advantage in international trade, the Treasury Department said in its Semi-Annual Report to Congress on International Economic and Exchange Rate Policies. Based on a 1988 law, the Treasury is required to submit to Congress twice a year a report identifying whether its major trade partners manipulate their currencies to boost their exports to the United States or make U.S. products more expensive in overseas markets. "Since the end of the dollar peg in July 2005, the renminbi has appreciated a cumulative 21.2 percent against the dollar and 15.7 percent on a real effective basis, based on the BIS (Bank for International Settlements) measure, said the report. According to the BIS index, China's real effective exchange rate appreciated 13.3 percent between June 2008 and February 2009, it said. The report also said China has made notable contributions to the world economic recovery. China's "timely and aggressive fiscal and monetary policy stimulus has resulted in a strong domestic economic recovery and a decline in its current account surplus, and as a result contributed significantly to the recovery in global demand," it said. China's real GDP rose by 7.1 percent on a year-over-year basis in the first half of 2009, as fixed investment and consumption contributed 6.2 percentage points and 3.8 percentage points to growth, respectively, said the report. Reflecting the decline in China's trade surplus, net exports in the first half of 2009 subtracted 2.9 percentage points from growth, the report added. In October, the International Monetary Fund (IMF) forecasted that China's real GDP would increase by 8.5 percent in 2009, up from its April forecast of 6.5 percent growth. The IMF predicted that in 2010 China's economy will grow 9.0 percent and account for 28 percent of the anticipated 3.1 percent global growth. China has managed an economic growth amid dwindling export. The report said China's exports fell by 31 percent between the third quarter of 2008 and the first quarter of 2009, while imports fell 30 percent. The report observed that in the second quarter of 2009, the country's imports recovered strongly over its stimulus measures. However, exports increased only slightly. "As a result, China's trade surplus narrowed to a three-year low of 35 billion dollars (3.2 percent of the GDP) in the second quarter. China's current account surplus narrowed to 6.7 percent of the GDP in the first half of 2009, from an 11 percent high in 2007." Notably, China's trade surplus with the United States in the first half of 2009 fell 13 percent from the same period of 2008, said the report. As one of the most important countries in the world, China provides a key force in the worldwide coordinated actions against the worst recession since the Great Depression of the 1930s, it said. "China's overall policies played an important role in anchoring the global economy in 2009 and promoting a reduction in its current account surplus," it added. It said that the U.S. government will continue to work with China both in the Group of 20 (G20) and their bilateral Strategic and Economic Dialogue to pursue policies that permit greater flexibility of the exchange rate and lead to more sustainable and balanced trade and growth.


• China's US-debt holdings drop (17th October)

China cut its US Treasury-bill reserve by $3.4 billion to $797.1 billion in August, though

it remained the largest foreign holder of US T-bills. Japan, the second largest holder of

the US government debt, however, has boosted its Treasury securities from $724.5 billion

in July to $731 billion. The overall demand for long-term US financial assets rose in

August, with foreigners buying $28.6 billion more in assets than they sold.

• Fiscal revenue rises 33%(17th October)

China's fiscal revenue in September increased by a whopping 33 percent year-on-year,

but officials and economists are still cautious about the full year's fiscal balance as the

country raises expenditure to boost the economy.

The country's fiscal revenue rose to 560.9 billion yuan ($82.1 billion) last month, while

its expenditure increased by 32.9 percent year-on-year to reach 657.7 billion yuan, the

Ministry of Finance said on Friday.

September saw the second consecutive monthly revenue hike of more than 30 percent

year-on-year.

"It's a bit surprising given the relatively weak economy," said Liu Shangxi, senior

researcher with the Research Institute for Fiscal Science, affiliated to the ministry.

This is the fifth consecutive month that the fiscal revenue has registered a year-on-year

growth since rising 4.8 percent in May and reflects that the economy has recovered from

the global economic recession, analysts said.

"The relatively low base of last year is also a factor (in the revenue increase)," said

Zhuang Jian, senior economist of the Asian Development Bank in Beijing.

The Ministry of Finance said increase in fuel and tobacco taxes was a major contributor,

too, while Liu contended that proceeds from land sales for property development could

be another important source of the increased revenue.

But Reuters cited a ministry official as having said that uncertainties remain. "The

economy is still recovering it's impossible to have new tax sources and (some) one-time

tax revenues are not to continue."

In March, the ministry submitted to the National People's Congress a fiscal revenue target

of 6.623 trillion yuan for 2009, or an annual increase of 8 percent. The projected fiscal

expenditure is 7.624 trillion yuan, or 22.1 percent more than last year.


The country's fiscal revenue reached 5.152 trillion yuan in the first three quarters,

accounting for about 77.8 percent of the yearly target. "It's possible that the target will be

met this year," Liu said.

Based on the ministry's data, the fiscal expenditure in the first three quarters accounted

for about 60 percent of the target, but experts said expenditure in the second half would

far exceed that in the first.

Liu said the fiscal expenditure could jump sharply in the coming months to pinch the

fiscal balance as the country continues its economic recovery, carries out medical reform,

raises subsidies for the poor and farmers, creates more jobs and enhances environmental

protection.

• Iron ore talks get off to a bad start (17th October)

The debate over the next year's iron ore benchmark prices has got off to an acrimonious

start with China seeking to separate its negotiations from other countries while global

giant miners refuse to budge downwards on prices.

Shan Shanghua, secretary-general of China's top iron ore negotiator China Iron and Steel

Association (CISA), said on Friday that iron ore contracts should run for a calendar year

instead of beginning on April 1, according to the Japanese financial year.

"We will not insist on other countries taking China's iron ore price as a reference," he

said at an iron ore conference in the coastal city of Qingdao

The iron ore conference is usually regarded as the unofficial start of benchmark price

negotiations for the next contract year.

"There may be another failure in agreeing a benchmark price next year, as happened this

year, if CISA sticks to its position," a mining executive familiar with the negotiations told

China Daily on the sidelines of the conference on Friday.

"BHP prefers to use spot prices, which are market-oriented and index-linked," he said. "If

both sides are not happy with the benchmark price negotiation, the next year ore trading

might again be based on spot rates."

Iron ore is the only commodity that is negotiated with a benchmark price system. Other

commodities such as copper and oil are linked to an index.


This year's iron ore price negotiations became deadlocked in June when China insisted on

a 45-percent discount on 2008-09 prices after a 33-percent cut in benchmark iron ore

prices had been set with other Asia steel mills.

Shan said Chinese steel mills would not be able to make money at the current price that

iron ore producers are demanding because an oversupply is causing steel prices to fall

sharply.

"If the demand side is always losing money while the supply side is always making huge

profits, can that relationship survive long?" he asked, insisting that global miners should

offer better terms.

Chinese iron ore imports rose 36 percent to 469.4 million tons in the first nine months

from a year earlier, the Customs said on Oct 14. Shipments have exceeded real demand

by 50 million tons, the steel association said on Oct 12.

But mining executives from iron ore producers said the iron ore price was driven by

demand, even if the demand side suffers lower profits. As long as the demand is there,

there will always be possibility of rising prices.

Miners are optimistic because the economic recovery is leading to increased demand for

steel.

Samarco Mineracao, an iron ore pellet joint venture between miners BHP Billiton and

Vale, expects to produce at full capacity next year as demand recovers, its chief

commercial officer, Roberto Lucio Nunes de Carvalho, said on Friday.

"Our expectation is to produce at full capacity of 22 million tons in the next year," he

said. "Industry demand is improving. Next year will be much better than this year."

However, some Chinese steel mills are not optimistic about next year's steel demand.

China's steel industry may end up losing money next year as oversupply weighs on

prices. That might force steel companies to cut production next year, said Han Weidong,

deputy chief of the market section of Hebei Iron and Steel Group Co Ltd.

"China's domestic steel demand is unlikely to reach 600 million tons next year, while

tight bank lending next year could hurt both demand for steel and expansion at steel

mills, restraining growth in iron ore consumption," he said.

A sales representative from a Hebei-based private steel company also said his company

felt times were hard now because steel prices have fallen sharply since August and the


iron ore spot prices remained at a high level. If the situation continues for a month, they

may make cutbacks, he said.

• China to launch its Nasdaq-style GEM on Oct 23(17th October)

The Chinese securities regulator said in Beijing Saturday that trading on the Nasdaq-style

Growth Enterprises Market (GEM) will be launched on Oct 23.

Shang Fulin, chairman of the Chinese Securities Regulatory Commission, released the

above information at a forum on GEM Saturday morning.

That means, the first batch of 28 companies will get listed and be open for trading next

Friday, a timing earlier than expected.

Overly high IPO prices expose investors to higher risks because near future value of the

stocks are unpredictable based on little historical data of the companies, analysts say.

Though beneficial to both economic development and employment creation, the GEM

companies are more likely exposed to market manipulation, Shang warned, adding these

companies are still less capable in face of market risks as they are relatively small

compared with the main board companies.

Social front

• Float demonstrates Chinese cultural prosperity(1st October)

A float with a shining fan-shaped picture of traditional Peking opera performer on a

civilian parade formation showcased Chinese cultural prosperity since the founding of the

People's Republic of China six decades ago.

Paraders dressed in long-sleeved shirts and white pants marched past the Tian'anmen

Rostrum. A banner on the float reads "promoting the socialist cultural development and

prosperity".

• China reports first death of A(H1N1) flu

China has reported its first death of A/H1N1 influenza on Tuesday, according to a Health

Ministry statement on its website.


An 18-year-old woman in Maizhokunggar County, Lhasa City died of the A/H1N1 virus

at about 3:20 a.m. on Sunday at the county hospital. She was taken to the hospital on

Saturday for coughing, sore throat and muscular stiffness. Her body temperature was as

high as 40 degrees, a Tibetan regional health department official said Tuesday.

The case has been confirmed by the Chinese Center for Disease Control and Prevention,

he said.

The Health Ministry sent 200,000 doses of vaccine to Lhasa by air on Tuesday to help

contain the virus from spreading in the region. More vaccines will be sent to the western

and plateau provinces soon.

The national capital Beijing reported its first A/H1N1 case with heavy sysptoms on

Tuesday, a municipal health bureau official said.

The 72-year-old man is receiving treatment with breathing machine at the Beijing Ditan

Hospital. He had suffered the chronic obstructive lung diseases for about 20 years. He

was confirmed to be infected with the A/H1N1 on Friday with a body temperature as

high as 38.5 degrees, he said.

Beijing had reported 2,181 confirmed cases of A/H1N1 influenza by Monday afternoon,

about 83.6 percent of which had recovered, according to the municipal health bureau.

The Chinese mainland had reported 21,453 confirmed cases of A/H1N1 influenza by

Tuesday, about 78.7 percent of which had recovered, according to a notice on the website

of the Ministry of Health.

A total of 13 cases with heavy symptoms had been reported, of whom eight has

recovered, the notice showed.

The ministry held a tele-conference on Tuesday, asking the local health authorities to

strengthen the monitoring and control of the virus outbreak, especially in the remote and

border areas.


• President of ACWF Chen Zhili visits Jordan

Chen Zhili (R), vice chairwoman of the Standing Committee of the National People's

Congress and president of All-China Women's Federation, meets with Jordan Queen

Rania al-Yassin in Amman, capital of Jordan, Oct. 11, 2009. Chen, who headed a

Chinese women delegation, made a three-day visit to Jordan from Oct. 10 to 12.

• Premier's candor on rock error rocks China(14th October)

It was a small mistake that many people would never have noticed, but Chinese Premier

Wen Jiabao felt the need to atone with a public apology.

In a Xinhua story featuring his comments after inspecting lessons at a middle school,

Wen, who has a postgraduate degree in geological structure, mixed up his rock types.

Wen was quoted as saying, "Teachers should give positive feedback to students' answers

even if they are not relevant to the lesson -- instead of just ignoring them and focusing on

the class agenda."

In one lesson, the teacher had raised a discussion on "what makes a perfect classroom."

However, a student wandered off topic and said, "I like rocks and want to study rocks in

the future."

Wen suggested the teacher should have responded by asking how many kinds of rocks

the boy knew and inspired his passion by talking about the types of rocks: "sedimentary,

magmatic and volcanic."

However, the third type should have been metamorphic rocks and Wen spotted the error

in the story released by Xinhua on Sunday.

In a letter written Monday evening to Xinhua's editor-in-chief office, Wen said: "The

three main types of rocks should be sedimentary rocks, magmatic rocks (also called


igneous rocks) and metamorphic rocks. Please correct my mistake and send my apology

to all readers."

Wen's move prompted a mass of comments on the Internet and most expressed respect

for the 67-year-old premier's attention to detail and honesty.

"Our premier's serious attitude towards science set an example for scholars; his sense of

responsibility set an example for officials; his sincerity set an example for all of us," said

a comment by "tjljzh" on Sohu.com.

"Everybody makes mistakes. My respect for our premier is stronger after this," said

Professor Wang Wei, of the National School of Administration.

"It shows Chinese public figures are paying more attention to communication with the

media, which is really a good thing for society. It also reflects how social and

government organizations are responding quickly to the public," Professor Zhang Yiwu,

of Peking University, told Xinhua.

"Facing problems with an honest attitude will only help solve them. What Premier Wen

did should inspire both government officials and ordinary people," Zhang said.

Wen has gained a reputation as a man of the people over the years.

• Chinese, African women pledge cooperation in addressing challenges (15th October)

A declaration stressing cooperation between Chinese and African women in addressing challenges of economic crisis and gender equality in political life was passed Wednesday when the China-Africa Women's Forum closed in Cairo.

As an activity affiliated with the Forum on China-Africa Cooperation, the Women's Forum is jointly sponsored by the All-China Women's Federation (ACWF) and Egyptian National Council for Women with the aim of enhancing the role of women in


consolidating the Sino-African ties and the cooperation between the two continents of Asia and Africa.

Given the theme of "Chinese and African women working together to address challenges and seek common development," more than 110 representatives from some 29 African states and China, including female governmental officials in charge of women's development and heads of women organizations joined the forum to explore new approaches to deepen friendship and cooperation and share the progress and experience of each country concerning gender equality and women's development.

During the forum, the discussion was separated into three panels, discussing topics on women's role in promoting Sino-African political and social dialogues, cooperation in response to the current global economic crisis, as well as women and the Millennium Development Goals.

The draft declaration went through a heated discussion among women delegates in Wednesday's meeting before it was approved by acclamation. The forum decided to submit the final declaration to the Fourth Ministerial Conference of the Forum on China-Africa Cooperation, which is scheduled for Nov. 6 to 9 in Egypt, with the expectation that the voices of women can be fully listened to.

The final declaration notes with satisfaction that China has maintained a friendly and cooperative relationship with the women and women's organizations in African countries for over half a century. Women are playing a vital role in deepening the friendly ties between China and African countries.

It emphasizes the importance of women's equal participation in legislation, decision-making and public life, noting the under-representation of women in public and political life as well as decision-making institutions. It also recognizes that women are more affected by the global financial crisis, with their job opportunities and labor rights challenged more than ever.

The declaration recommends that special measures should be implemented to create a favorable environment where women can be better engaged in political life, while providing them with more leadership training, to gradually narrow the gender gap in political participation.

In response to the financial crisis, the declaration states that governments should give full consideration to the interests of both men and women with regard to developing economic recovery plans, and avoid the risk of aggravating the gender gap and gender inequality by applying a gender perspective.


The declaration also condemns the aggression and the hostile actions women face in armed conflicts especially in Africa and stresses women's vital role in achieving peace and security.

The Chinese delegation to the forum is led by Chen Zhili, president of the All-China Women's Federation (ACWF) and vice chairwoman of the Standing Committee of the 11th National People's Congress.

During her meeting with Speaker of the People's Assembly of Egypt Ahmed Fathi Sorour on the sidelines of the forum, Chen said the forum set up a new platform for women's cooperation between China and Africa.

While Sorour said African countries and China should discuss how to raise women's

status through social and political reform, and only real reform can prevent women's

development from falling into empty talk.

Ethnic issues

• Chinese wish for national unity, reunification in festive parade(1st October) Chinese people expressed their desire for national unity and reunification Thursday

morning in a mass procession celebrating the 60th founding anniversary of the People's

Republic of China.

Following a grand military parade, the mass procession, in 35 formations with different

themes, began at around 11:20 am in front of the famous Tian'anmen Rostrum at the

heart of Beijing.

About 8,500 people joined the formations unfolding achievements of the country, turning

Tian'anmen Square into a stage for a great show of their floats' catwalk.

A gorgeous float with colossal Chinese characters "tuan jie fen jin", or "March in Unity",

marched from east to west along the Chang'an Avenue, leading the parade into the theme

of national unity.

The 34 floats forming the array "Splendid China" eulogized the great changes in the

country during the past 60 years and expressed the desire for national unity and

reunification of the country.

Decorated with landmarks of the 31 provinces, autonomous regions, municipalities, and

Hong Kong, Macao and Taiwan, the 34 floats focused on economic achievements while

highlighting local characteristics.


The five floats from the automous regions of Inner Mongolia, Xinjiang Uygur, Ningxia

Hui, Tibet and Guangxi Zhuang offered a distinctive flavor of ethnic minority groups

with dancers dressed in ethnic costumes toeing and heeling it to the music.

It took about 18 days for nine art designers of Han, Uygur, Tajik and Hui ethnic groups to

decorate the Xinjiang float.

"It feels good to draw all the float paints by ourselves," said Arsin, a Tajik ethnic art

designer. "From the bottom of my heart, I hope all brothers and sisters of different ethnic

groups in our country can live together in solidarity and prosperity."

Special floats featuring Hong Kong and Macao special administrative regions highlighted

their city landmarks and their return to the motherland.

China resumed the exercise of sovereignty over Hong Kong in 1997 and Macao in 1999.

The float representing Taiwan drew applause and cheers when it pulled into Tian'anmen

Square.

It featured the Taipei 101 Tower model, colorful local fruits and other landmarks.

"My feelings were mixed," said Lin Cheng Weng, chairman of the Taiwan-based China

Association of Planning. "It took about 60 years for me to turn the black-and-white image

of the mainland in my mind to a color one."

It was the first time for Weng to watch such a parade in the mainland.

"We have the same skin color and the same bloodline, thus let us lay aside our historical

grudge and look forward together," said Weng, who has been engaged in mainland-

Taiwan exchanges for 20 years and was among the Taiwan compatriots invited to watch

the parade.

Weng said he wished for a greater unity of the Chinese people across the Taiwan Straits

based on mutual understanding.

The mainland and Taiwan, with a long feud after the civil war 60 years ago, have been

cementing ties in recent years, seeing financial cooperation, disaster relief donations and

exchanges between the Communist Party of China and the Kuomintang and other

political parties on the island, in addition to the breakthroughs in transport links.


• Al-Qaida threatens to attack China(8th October) A prominent Al-Qaida militant on Wednesday threatened to attack Chinese targets in

"reprisal" for the July 5 riots in Urumqi, capital of the Xinjiang Uygur autonomous

region.

He urged Uygurs in Xinjiang to "make serious preparations" for a "holy war" against the

Chinese government and called on fellow Muslims for support.

Abu Yahya al-Libi, in a video posted on an Islamist website yesterday, called for "a true

return to their (Uygurs) religion and ... serious preparation for jihad in the path of God the

Almighty and to carry weapons ..."

He urged the Muslim world to "support them (the Uygurs) with all they can".

It was not the first time a terrorist group has threatened to attack Chinese targets after the

July 5 riots, in which nearly 200 civilians, most of them Han Chinese, were killed.

In mid-July, Al-Qaida's Algerian-based offshoot, Al-Qaida in the Islamic Maghreb

(AQIM), issued a call for "reprisals".

AQIM pledged to target the 50,000 Chinese workers in Algeria as well as Chinese

projects and workers across northwest Africa, said the London-based international

consultancy Stirling Assynt.

The Chinese embassy in Algeria then issued a statement on its website urging Chinese

organizations and citizens in Algeria to be on alert.

Justin Crump, head of terrorism and country risk with Stirling Assynt, told China Daily:

"Although AQIM appears to be the first arm of Al-Qaida to officially state they will

target Chinese interests, others are likely to follow".

In August, the leader of a group calling itself the Turkistan Islamic Party (TIP) urged

Muslims to attack Chinese interests worldwide.

TIP has claimed violent attacks in the past, including the bombing of two public buses in

Shanghai in May last year.

Environmental front

• Solar panels at National Day parade highlight changes in China's energy use


Solar panels held by a formation of energy workers at the National Day parade on

Thursday demonstrated China's determination to shift to renewable energy in handling

climate change.

Surrounded by energy workers, a float carrying the sculptures of windmills and oil

reserve containers, as well as a banner reading "Striving to develop clean energy,"

moving past Tian'anmen Square at the magnificent pageant marking New China's 60th

anniversary of founding.

Regional report North Politics

• President Hu calls for further efforts to protect public stability in Beijing

Chinese President Hu Jintao on Wednesday called on police in Beijing to continue efforts

in protecting public stability in the capital city, especially in areas near the Tian'anmen

Square.

Hu, also general secretary of the Communist Party of China (CPC) Central Committee,

made the remarks when meeting with representatives from Beijing's special police forces,

traffic police, and armed police who were stationed in the Tian'anmen Square. The

president noted the police had made outstanding contributions to the success of the

country's National Day celebrations, which included a military parade, a grandiose

pageant and an evening gala in the Tian'anmen Square, by maintaining public order in

Beijing.

The police should further improve their working capabilities as well as their equipment

in order to better protect public stability in Beijing and in areas near the Tian'anmen

Square, he said.

President Hu also took the city's newly completed subway to the Summer Palace in

northwestern Beijing.


Social front

• Chinese State Councilor urges university faculty, students to embrace innovation (October 14)

Chinese State Councilor Liu Yandong on Wednesday called for teaching faculty and

students of a mining university to promote its fine traditions and embrace innovation.

In a meeting with teachers and students of the China University of Mining and

Technology upon its 100th founding anniversary, Liu said the university has made

outstanding contribution in personnel training, scientific research and social services.

She called for efforts to build the university into a world-class institution of higher

learning, deepen its educational reform, embrace innovation in its mode of personnel

training so as to provide support for national development of energy industry and

environmental protection.

She also stressed the importance of make breakthrough in important theories and key

technologies of the mining industry and promotes technologies that are highly energy-

efficient, have low carbon emission levels and are conducive to the prevention of

accidents.

Efforts should also be made to facilitate the construction of a natural resources-

efficient and environmental friendly society, she said.

• China urges int'l co-op, dialogue for "green" development

Chinese top political advisor Jia Qinglin Friday called for international cooperation,

shared responsibility and dialogue to promote sustainable development worldwide.

"Green development should be a common cause for the world," said Jia, chairman

of the National Committee of the Chinese People's Political Consultative Conference

(CPPCC) at the opening ceremony of the first Caofeidian Forum held in Tangshan,

northern Hebei Province.


He suggested that the government of all countries should develop their own roadmap

of green development based on the reality of their countries and adopt effective

policies.

"It is a shared responsibility for the world to improve energy efficiency and reduce

greenhouse gas emission," he said.

He called for developed countries to lead the cause and provide financial and

technical support for developing countries to cope with climate change.

New technologies in energy saving, environmental protection and new energy

application should be widely used, he said. "The international society and

governments of all countries should strive to set up a new mechanism that smoothes

international technological exchange while protecting intellectual rights."

Jia also suggested that the world should explore sustainable development through

dialogue.

"China will stick to the sustainable development," he said. "We will work to build a

resource-saving, environmentally-friendly and innovative country."

The three-day forum was the first permanent international forum themed on the

sustainable development initiated by China. It will be held every two years.

Economic front

• Hydroelectric project (7th October)

Ecuadorian President Rafael Correa on Monday signed a contract with representatives of

China's Sinohydro Corporation to build a $2-billion hydroelectric plant in the country.

The Coca-Codo-Sinclair hydroelectric project, to be built along the Ecuadorian Amazon

River, about 75 km from the capital of Quito, will have a total capacity of 1,500

megawatts and an annual output of 8.8 billion kilowatts. The project will reportedly

create about 4,000 direct jobs and 15,000 indirect jobs.


• Old business street gets a new makeup in Beijing(15th October)

People walk on the renovated Dashilaxijie Street in Dashila, Beijing's old business

district in Qianmen, October 15, 2009. The 323-meter-long traditional business

thoroughfare reopens to customers and tourists after a seven-month preservation project.

• Automobile numbers could be capped (19th October)

As many as 5.5 million cars will be on Beijing's roads by 2015, although the growth rate

will stabilize in the next five years, a senior local transport official said.

Beijing's car community will hit 4 million by the beginning of next year and will then

grow by an average of 300,000 cars a year, compared to the present rate of 400,000, to

reach 5.5 million in 2015, Liu Xiaoming, director of the Beijing municipal committee of

communications, said.

Liu said the municipal government would not restrict the number of cars on the road at

the moment, but would not rule out doing so in the future.

"But efforts would be made to reduce public needs for cars and restrict their use and

parking through overall traffic planning and related policies," he said.

By next year, Beijing's car community will have grown by 1 million in only two-and-a-

half years. It took cities like Tokyo 12 years to reach that rate of growth.

Authorities have tried to ease persistent traffic jams and reduce emissions with an on-

going car ban in the city, which stops motorists from driving one day every week based

on their license plate number.

They have also attempted to enlarge and enhance the city's public transport system.

Official estimates show public transport would make up to 50 percent of the total

passenger trips in the central urban areas by 2015, while 20 percent of journeys will be

made on bicycles.

Liu said that less reliance on private cars would ensure that vehicle emissions do not

exceed that of 2008, despite increasing vehicles.

But Jia Yuanhua, a transportation professor at Beijing Jiaotong University who is a

proponent for car controls, said the government should control the number of vehicles

since the road resources are limited.

"The government would not restrict the purchase of cars because they need to support the

growth of the industry and increase GDP during the financial crisis," he said.


"But that is not sustainable and we have to take into consideration the traffic capacity."

Lu Huapu, director of the institute of transportation engineering, Tsinghua University,

also expressed concern over the city's infrastructure capacity.

"The Chinese people like to use their cars frequently once they have one and I really

doubt whether we can support such an enormous need," Lu said.

Northwest Politics

• 108 stand accused in Urumqi riot (9th October) Accusations have been brought against 108 suspects allegedly involved in the riot in Urumqi in July, the capital of the Xinjiang Uygur autonomous region, the city's deputy chief procurator said. Among accused suspects connected with 55 cases, only 21 suspects involved in six cases were charged with homicide, arson and robbery and will be prosecuted in the Intermediate People's Court of Urumqi. The 21 will be the first batch of riot suspects to stand trial, Liu Bo, the city's deputy chief procurator, told Xinhua. "The police and procuratorate have made a lot of effort to collect solid and legitimate evidence against each suspect allegedly involved in criminal activities in the riot. The effort includes crime scene investigation, collection and analyzing evidence as well as identifying victims," Liu said. "It's a time-consuming task for the police force due to the number of people and the amount of evidence involved," Liu said. "That's why we have only instituted public prosecutions against 21 suspects so far, but the procuratorate will speed up the process of public prosecution for the rest of the suspects." In response to the July 5 riot, which left 197 people dead and more than 1,600 injured, local police have so far requested the procuratorate approve the arrests of 575 suspects thought to have been involved in 366 cases. Among the 575 requests, 430 have been granted, Liu said. Police have previously said that 825 people have been detained so far in connection with the riot. The procuratorate also published brief details of the first six prosecuted cases, which left 25 people dead. All 21 suspects involved are charged with intentional homicide, which could lead to death sentences. In one case, Abdukerim Abduwayit is charged with intentional homicide and arson for kicking and stabbing five people to death at Tuanjie Road and torching several buildings. In another case, four suspects, led by Gheni Yusup, were alleged to have beaten five people to death in four different locations. The group also torched a grain and oil distribution center, which caused five people who were trapped inside to burn to death. They are charged with intentional homicide, arson and robbery.


Liu also cleared the rumor that suspect Han Junbo's wife was brutally killed in the riot and that was why Han killed one person as revenge. "Han's wife and three children are safe and sound," said Liu. Han is charged with intentional homicide. Police have also confirmed the arrest of the suspect who killed armed police Wan Jingang during the riot. The suspect was detained on Sept 19 and will be prosecuted as soon as possible, said Su Yanbing, the vice-chief of Urumqi public security bureau. Meng Jianzhu, state councilor and public security minister, has urged no leniency in the punishment of those who took part in the Urumqi riot.

• China sentences six to death over Xinjiang riot (Urumqi) 15th October

Six people were sentenced Thursday to death for murder and other crimes in three court

cases regarding the deadly July 5 riot in Urumqi, capital of the far western Xinjiang

region.

In the first case, Ahmatjan Moming and Tohti Pazil were given the death penalty while

Ainiwa'er Aikepa'er and Xi'erzhati Maimaititusong were sentenced to death with a two-

year reprieve.

Moming and Pazil were found to have beaten two people to death and were convicted

of murder at the Urumqi Intermediate People's Court, said a statement from the court.

Moming also stole mobile phones and bracelets. Four defendants -- Pazil, Aikepa'er,

Ruzi Imam and Aikebai'er Aishan -- with others set fire to and smashed more than 40

cars in a dealer shop, incurring losses of 1.6 million yuan (234,400 U.S. dollars), the

court found.

Ruzi Imam, Tusongjiang Maimaiti and Tu'ersong Abulizi were sentenced to life

imprisonment for their involvement in attacks on members of the public and setting fire

to and smashing private property.

The statement said the remaining four of the 11 in the case were given jail terms

ranging from five to 18 years for arson and assaulting people with stones, bricks and

clubs.


In the second case, Aizezijiang Yasin was sentenced to death with a two-year reprieve

on a charge of murder after he was found guilty of beating an innocent person to death

with others and stealing a mobile phone.

Yasin was given the lesser punishment as his confession helped uncover the criminal

case, the statement said.

In the third case, Han Junbo and Liu Bo were found guilty of attacking Rouzhahong

Ahmad and Kurban Ahmad "on rumors," the statement said, without elaborating.

Rouzhahong Ahmad died of injuries and Kurban Ahmad was slightly injured after

jumping from a building to escape.

Han was sentenced to death while Liu was jailed for 10 years.

The court also deprived the nine defendants who were given death penalty or jailed for

life of their political rights.

The statement gave no other details of the three cases.

On Monday, six defendants also were given death penalty for murder, arson and

robbery, the first to be sentenced in relation to the July 5 Urumqi riot that left almost 200

dead.

Social front • Xinjiang to strengthen education on national unity among youth (12th

October) Xinjiang Uygur Autonomous Region, whose capital suffered a deadly riot three months ago, plans to enhance education on ethnic solidarity among youngsters, local officials said here Monday. New curricula about China's national unity will be added to all primary and middle schools and universities in the region, said Ashat Kerimbay, chairman of the Regional Committee of the Chinese People's Political Consultative Conference. In addition, grassroots cadres are required to pay more attention to people's daily life and guide people to go out of scare from horrible scenes in the riot, said Kerimbay. The top political adviser of Xinjiang made the remarks at a Party conference held Monday to commend 41 organizations and 52 individuals that were conferred awards on September 29 in Beijing for their role in promoting ethnic harmony.


A total of 739 organizations and 749 individuals from across the country won awards from the State Council at a ceremony for major contributions to ethnic harmony. At Monday's conference, Wang Lequan, secretary of CPC Xinjiang regional committee, called for implementation of the government decision and concrete measures taken as soon as possible. The July riot left 197 people dead and more than 1,600 injured in Urumqi, badly hurt people's feelings and undermined social stability. The municipal government of Urumqi decided to exempt taxi drivers from road tolls for three months beginning from mid-October, a move to compensate their economic losses from the riot, said Mei Haibo, an officer with the city's passenger transportation administration office. More than 7,000 qualified local cab drivers will benefit from the measure, earning 305 yuan ($44.7) more each. Economic front Northeast Southwest South central Economic front

• Subway line to traverse Yangtze River in central China(17th October) China's first subway tunnel traversing the Yangtze River is expected to begin construction this month in Wuhan, capital of central China's Hubei province, local officials said Saturday. The 3,100-meter-long tunnel is located between the country's first bridge on the river, the Wuhan Yangtze River Bridge, and its first road tunnel beneath the river, officials said. The subway tunnel is expected to undertake 50 percent of the city's traffic flow across the river. And it is designed to withstand a 6.0-magnitude earthquake and a flood that occurs once every 300 years, they said. The tunnel is part of the city's No 2 metro line with a length of 27.98 km, which is expected to be completed in 2012. About 14.9 billion yuan ($2.2 billion) will be invested in the construction of the metro line, officials said. The first road tunnel was built in Wuhan, and opened for traffic since last December. Another two road tunnels under the Yangtze River in Shanghai and Nanjing, captial of East China's Jiangsu Province, are expected to open for traffic respectively at the end of this year and in July, 2010. The 6,300-km-long Yangtze River, which originates in Northwest China's Qinghai province and flows through 10 provinces and municipalities before emptying into the East China Sea, is a major transport link between the west and east China. More than 100 bridges across the river are in use.


Social front

• 15,000 living near lead smelters will be relocated soon(17th October) About 15,000 residents in 10 villages around lead smelters in Jiyuan, China's biggest lead smelting base, are going to move away from the threat of lead poisoning, after more than 1,000 children were found to have excessive lead in their blood, officials said yesterday. Zhao Suping, mayor of the city in central Henan province, said on Friday the mass relocation would cost 1 billion yuan ($146 million). About 70 percent of the cost will be paid by the government and the smelters, and the other 30 percent will be funded by local residents. The government is now looking for sites for the new settlements, he said. The health bureau of Jiyuan initiated blood tests for children on Aug 20 in the wake of a lead poisoning scandal in neighboring Shaanxi province. The mass lead poisonings in Henan, and earlier this year in Shaanxi, Hunan and Yunnan, sickened thousands of children. The poisonings shed light once again on the dilemma facing many parts of China as industrial development poses threats to the environment and people's health.

• VIP classes halted in Hubei(17th October) Primary schools in a city of Hubei province that have been offering VIP classes for extra tuition payments have been ordered to stop the classes and return the tuition, so as to ensure equal compulsory education for all, officials in the city said. In Huangshi, an industrial city in central China's Hubei province, many primary schools had created two kinds of classes for students. The fee for an "experimental class" is much higher than the cost for an ordinary class. These experimental classes cost from 4,000 yuan to 14,000 yuan ($2,050), China National Radio (CNR) reported. In Zhongshan Primary School and Yanhulu Primary School, experimental classes have about 20 students, and are equipped with air conditioners, TV sets, water dispensers, newly painted walls and good-quality desks and chairs. These classes also have the best teachers, the report said. The ordinary classes do not have all these luxuries, and they often have as many as 50 students - more than twice the enrollment of the VIP classes. "Senior officials of Huangshi government have ordered relevant schools to stop organizing experimental classes immediately," Ding Yuanshi, an official with the city's Party committee's publicity department, told China Daily yesterday. Zhongshan Primary School and Yanhulu Primary School were asked yesterday to return the tuition fee to parents, and school officials are under investigation, he said. The local education bureau also has organized a special team to crack down on the "luxury" classes in citywide public primary schools. China's nine-year compulsory education law, launched in 1986, enables students older than 6 nationwide to have free education at both primary and secondary schools. The schools operate with government funds.


The law stipulates that primary and secondary schools cannot charge students tuition and incidental expenses, Gao Xuegui, a senior official with basic education department of the Ministry of Education, was quoted by CNR. "Primary schools in Huangshi provide better education conditions to students who pay more, which apparently goes against the compulsory education law," he said. According to the law, schools should ensure students' equal access to compulsory education, and those schools that do not should be punished, he said, without elaborating how the schools' officials would be punished. "What the schools did with the VIP classes is improper and might hinder some children's growth," Zhao Guanghua, an expert with the education administration branch of the Chinese Association of Education, told China Daily yesterday. Environmental front

• Drought leaves 250 ships stranded in south China Ships are seen stranded at a section of Bei Jiang (North River) in Qingyuan, in south China's Guangdong province, October 15, 2009. The local government has organized an emergency management team to ensure the safety of 250 ships stranded due to the low water level amid continuous drought, Xinhua reported. East Economic front Shanghai

• Shanghai marks 200-day countdown to World Expo The itinerant exhibition on history of World Expos came back to Shanghai Tuesday with new updates to mark the 200-day countdown to the 2010 Expo, which is set to open on May 1, 2010 in the largest metropolis of China. The exhibition, which made its debut 26 months ago in Shanghai, has been held in 26 provinces, autonomous regions and municipalities across China, attracting over 2.3 million visitors. The newly updated exhibition features progress in ongoing preparations for the 2010 Shanghai Expo, including infrastructures being built and services to be provided during the impending six-month event. In comparison with the 600-day countdown, Shanghai made remarkable progress towards a 'better city' over the past 400 days. The city has finished a project to modify a total space of more than 48 million square meters of slope roofs and more than 91 million sq. m of external walls of buildings re-decorated.


During the 400 days, Shanghai increased green plots, including gardens, by 3,582 hectares, 20 percent larger than the plan, 18,700 public parking areas for motor vehicles and another 143,000 for non-motor vehicles, 172 percent and 372 percent, respectively, more than those planned. The removal of illegal facilities is also well under way. Nearly 30,000 illegal ad boards and 80,000 commercial signs have been removed. A total of 2.8 million sq. m of illegal structures have been dismantled. Despite the inconvenience from the construction and removal efforts, a survey conducted recently by the city government showed 93 percent of 5,700 citizens surveyed thought the public management and city environment have been improved. About 94.6 percent are satisfied with the public services in the preparations for the expo and 96.9 percent thought it's beneficial to the civilization of the city. Approximately 88 percent of 345 environmentally-friendly toilets planned for the expo have been newly built, and 1,220 toilets were upgraded for the handicapped over the past three months. Bilingual hot-line services have been launched for 47,000 taxi cabs in the city. So far, 242 countries, regions and organizations have signed contracts to participate in the Shanghai Expo. Construction work has begun on 40 out of the 42 pavilions to be built by participants themselves, and half of the 42 rented pavilions have handed over to participants. Construction on 3 of the 11 joint pavilions have finished. All the construction work will be completed by the end of this year. Social front:

• Seniors' home must move, govt says(17th October) Nearly 300 senior citizens face an uncertain future after government officials mandated that their home will be relocated within a month, apparently to make way for a property development. Zhang Minsheng, director of Shanghai Minsheng Home for the Elderly, told China Daily that Zhabei district government officials told him on Friday afternoon the home must be relocated. He said officials told him the order was based on a court ruling that said Zhang's lease was invalid and that the government plans to use the land for development. "I was told, if we relocate within one month, we will be compensated with 6 million yuan ($882,000). Otherwise, they will force the relocation of the home and we have to pay all the relocation fees," he said. Zhang fears that the 6 million yuan compensation will be insufficient to rent another building. Typically, buildings of the size needed in that area rent for around 33 million yuan for 15 years, said Zhang.


Zhang believed his lease was valid for 15 more years. It was signed in 1993 at 40,000 yuan a year with a 10 percent increase every three years. According to the verdict from the district court, the land that the building is on is collectively owned by local villagers and should not have been rented out in the first place. Therefore, the contract is illegal. Two local government-run companies, Tangnan Warehouse Company Ltd and Tangnan Industry Company, now own the land and will compensate Zhang, the verdict said. Du Yueping, a lawyer who has helped deal with property disputes for 20 years, said the rental agreement is likely illegal, just as the court ruled. "According to Chinese law, a lease cannot be longer than 20 years," he said. "But the compensation should be at least close to the market price." Hu Changchun, deputy director of the district justice bureau, is in charge of the relocation talks. He confirmed that talks were ongoing but declined to give details. Calls to the publicity department of the local government were not answered. According to a notice on Zhabei district's official website, the home for the elderly is part of a 75,400 sq m parcel slated for development. No further details were offered. By Friday, the two buildings comprising the seniors home were the only units left standing in the area. Apartments in the north of Shanghai sell for between 18,000 yuan and 20,000 yuan per sq m. Dao Shuqin, 53, whose 93-year-old mother lives at the home, wishes she could be left alone. "We all work and she is paralyzed and needs care all the time," she said. "She came here three years ago and has finally adapted to the place. I don't think she will be able to adapt to another change because she is so old and weak." Dao said people started to scramble to find new homes after the village government provided residents with a list of alternate retirement facilities. "But they are all expensive and many of them don't take old people who are so sick and in need of 24-hour care," said Dao. By the end of last year, Shanghai had 3 million people aged 60 or older, accounting for more than 20 percent of the city's population.

• 11th Chinese National Games opens in Jinan(16th October) One year after the hosting of the exceptional Beijing Olympic Games, the 11th National Games, billed as China's mini-Olympics, opened amid a splendid ceremony here Friday evening. Chinese President Hu Jintao officially opened the Games at the ceremony held in the newly built Olympic Sports Complex in this capital city of east China's Shandong province. With 55 of all 63 Chinese Beijing Olympic champions expected to compete, the quadrennial national meet is set to stage another sports gala for the country which just celebrated its 60th birthday. Among those present at the ceremony are President of International Olympic Committee (IOC) Jacques Rogge, who was re-elected at the 121st IOC Session held in Copenhagen just one week ago, and a dozen of IOC members.


When addressing the full capacity of 60,000 at the ceremony, Liu Peng, director-general of State General Administration of Sports and President of the Organizing Committee of the 11th National Games, said a successful staging of the National Games will be a perfect gift dedicated to the country's 60th birthday. "The National Games has contributed a lot to the development of Chinese sport in the past 50 years. We must build on what we have achieved since the Beijing Olympics, make our country much stronger in sport and promote the national fitness program as well," Liu added.

• Industrial salt in food poisons 26 in Shanghai(18th October) Shanghai authorities said Sunday that they found industrial salt in food that sickened 26 people at a local delicatessen. One of the poisoned patients died in the Pudong District People's Hospital and 10 were still receiving treatment there. Those with light symptoms have left hospital, according to a health department official in Pudong District, on Saturday. The patients were diagnosed with nitrite poisoning, according to the hospital. The people showed symptoms of nausea, vomiting and rapid heartbeat, after eating food at "Zhibin Delicatessen" in Pudong. The local administration for industry and commerce has shut down the shop, which was found to operate without valid business license, and confiscated more than 26 kg of processed food and processing facilities. The administration said that they will send the food sample for further test, and traced the sales links that sold the industrial salt to the food shop. The owner of the delicatessen has been detained by police HONGKONG AND MACAU Politics

• Hong Kong celebrates national anniversary(2nd October) It started out looking much like any other day in Hong Kong, except that the city that usually sleeps late is sleeping later, because it's a holiday. Another thing that was different was all the colored banners rippling in the morning breeze. There were already thousands of early birds in Golden Bauhinia Square at 8 am, who came to watch the flag-raising ceremony, joining in celebration of the 60th birthday of the People's Republic of China. "I was born on October 1, 1949, the founding day of our motherland. I am very proud that I am celebrating my birthday with our country all along, and I regard the national anthem my birthday song as well," a woman in the crowd said. Some students from the mainland came to watch. They're in Hong Kong taking part in some cultural exchange programs. To them Hong Kong's observance of National Day had a Western flavor.


"It's my third day in Hong Kong, and I love the city. I've been to the flag-raising ceremony in Beijing. The ceremony in Hong Kong is so different. It's a bit westernized, just like the city itself," a student said. One spectator brought his 5-year-old son. The boy would not understand the meaning of the ceremony, but the dad wanted him to see it anyway. Father and son were going to witness something important this day, the raise of the flag. Brian Frier, a physician professor from the UK, said he was in Hong Kong for a conference and deliberately got up early to attend the flag-raising ceremony yesterday morning. "It is very impressive. The ceremony is well-organized and people seem enthusiastic about it. China developed rather quickly these years. After the handover, Hong Kong remains the present system and it works very well," said Frier. Some of the plasma TV screens in Causeway Bay were not showing the live broadcast of the 60th anniversary celebrations in Tian'anmen Square, starting at 10 am. Grumbling about that, the spectators moved on to find a screen that was carrying the live broadcast. Then they stood rooted in place, joining millions upon millions all over China watching the spectacular show. Luo Yanzhen, a woman who was a naval officer in the South China Sea Fleet back in the 1950s and 1960s, said that the parade brought back a lot of memories from half a century ago. "It's hard to describe the feelings that arose when watching the magnificent procession. I was a soldier but never got the chance to march in the National Day parade. But I don't want to miss the chances to watch the parade," she said. "The past can not be compared with the present," she sighed as she watched the men and women in their naval uniforms passing by. Miniature flags were given out and spectators waved them at the big screen. Tourists from overseas joined the crowd. Shannon Kerry and Robert Hart are from the US, with their two kids settled down in Hong Kong just a few months ago. Attracted by the military parade, they stopped to watch the ceremony in front of the big plasma screen. "The parade is amazing! I've never seen this before in the States," said Kerry. Crowds started gathering around Victoria Harbor at noon hours before the annual fireworks display at 8 pm. Families, couples, and groups of friends crowded tightly along both shores, waiting to be dazzled by the explosions and the galaxy at lights that lit up the night sky. The 23-minute fireworks show to the accompaniment of familiar background music seemed to ignite a passion in everyone. At the finale, the characters "China Sixty" were illuminated sixty times, evoking exclamations of joy among the spectators. One woman recalled the uncertainties she felt back in 1997 when the handover took place. "We had doubts about life after 1997 at the beginning. Luckily the doubts proved to be wrong. Hong Kong is still a free and developed society. Beijing has always been very supportive of Hong Kong when we were in trouble. I believe the mainland will always back Hong Kong," she said.

• HK chief delivers 2009-10 policy address (14th October)


Hong Kong Special Administrative Region (HKSAR) Chief Executive Donald Tsang delivered on Wednesday a policy address at the Legislative Council, outlining the policy direction in the coming year. In the annual policy address titled "Breaking New Ground Together," Tsang said Hong Kong was hit hard by the global financial turmoil and the economic downturn but the Hong Kong people "has done a great job in keeping the ship afloat." "I am confident that, for the rest of the year, our economy will improve further and gradually recover," he said. Hong Kong, one of the world's freest economy, recorded sharp declines in its GDP and external trade during the downturn. The economy reversed four quarters of contraction in the second quarter to record a quarter-on-quarter growth of 3.3 percent, boosted by forceful stimulus measures and benefiting from the strength of the mainland economy. Tsang said challenges remained ahead for Hong Kong to maintain its status as a global financial center and increase its competitiveness as a trade center. "Hong Kong must constantly enhance its competitiveness and continue to evolve into a high value-added, knowledge-based economy to maintain its leading edge over global competitors and create more quality jobs," he said. Tsang outlined plans to promote the innovation and knowledge-based industries, including the six industries recommended earlier by a task force, such as education services, medical services, testing and certification, environmental industries, innovation and technology, and cultural and creative industries. Tsang said the innovation and knowledge-based industries also included the traditional pillar industries such as financial services, tourism, trading and logistics, and professional services. "In order to sustain their development, we must try every means to enhance the flow of people, goods, capital and information that are related to the four pillar industries," he said. Economic front

• Macao eyes curbs on its booming gambling industry Macao may curb the growth of its booming casino industry with limits on the number of gambling tables and other restrictions, the government said. The southern Chinese city's government met Monday with executives of six casino operators, including the local units of Las Vegas Sands and Wynn Resorts, to discuss a review of the industry, according to a government statement. The companies all agreed the city's gambling sector shouldn't expand unlimitedly, the statement said. The government said it would examine the local industry's scale, including the number of gambling tables, as well as move to bar slot machines from residential areas and raise the age limit to enter casinos from 18 to 21. Macao has boomed in recent years, surpassing the Las Vegas Strip as the world's more lucrative gambling market. Growth fell with the onset of the economic crisis, but recovered thanks to a robust Chinese economy and the relaxing of visa restrictions on Chinese mainland tourists.


Macao's growth has helped provide a cushion for Las Vegas Sands and Wynn at a time when the US gambling market is down sharply. In August, the enclave had its best month ever, raking in almost 11.4 billion patacas ($1.4 billion).

• HK to enhance competitiveness as global financial center(14th October) Hong Kong Special Administrative Region (HKSAR) Chief Executive Donald Tsang on Wednesday pledged to take a series of measures to enhance Hong Kong's competitiveness as a global financial center. "We should fully grasp the opportunities presented by 'One Country, Two Systems'," said Tsang when delivering his annual policy address at the Legislative Council. "We will continue to develop Hong Kong as a global financial center, asset management center and offshore RMB business center attracting capital and talent from within and outside the country," he said. In the process, Hong Kong will endeavor to meet the overall development needs of the country and achieve a win-win situation, and contribute to the country's financial security. As a prime global financial center in the Asian time zone, Hong Kong enjoys many advantages, including a highly open and internationalized market, a regulatory regime aligned with major overseas markets, the rule of law, and the free flow of information and capital. Tsang said that the Financial Secretary of the HKSAR government will formulate specific plans along the following direction: -- To build on Hong Kong's strength as an international market and enhance the quality and competitiveness of its market to attract international talent, capital, financial institutions and products; --To strengthen Hong Kong's role as the testing ground for the liberalization of China's capital account and the regionalisation and internationalization of the RMB, and to build a market offering a broad range of RMB products and services; --To leverage on the "early and pilot implementation" policy to enhance the two-way flow of financial institutions, financial products, capital and talent between Hong Kong and the Pearl River Delta (PRD) region; -- To serve as Mainland enterprises' preferred capital raising center outside the Mainland, providing equity listing, bond issuance, international asset management and hedging services. In this regard, Hong Kong can act as the bridgehead for Mainland enterprises to go international; and --To strengthen the links between the Mainland and Hong Kong financial markets in the areas of financial market infrastructure, information sharing, and regulatory co-operation to enhance the financial security of cross-border capital flows. Social front

• HK report 28th death of A(H1N1) flu (5th October)


A 52-year-old man who tested positive for the A (H1N1) influenza died Sunday in Hong Kong, bringing the death toll of the disease in the city to 28, Hong Kong's Hospital Authority announced Monday. The man, who was diagnosed with diabetes mellitus and hypertension, developed flu symptoms on September 25 and attended the Accident and Emergency Department of Kwong Wah Hospital on September 29. The patient was admitted for clinical treatment. Positive result of HSI was confirmed on the same day and he was prescribed with Tamiflu and antibiotics. The condition of the patient deteriorated on September 30 and he died Sunday. The case has been reported to the Hospital Authority Head Office and the Centre for Health Protection.

• HK to enhance regional education hub status: CE(14th October) Authorities will enhance Hong Kong's status as a regional education hub, Hong Kong Special Administrative Region (HKSAR) Chief Executive Donald Tsang said in the policy address on Wednesday. "Our objective is to enhance Hong Kong's status as a regional education hub," he said, adding that efforts will be made to further boost Hong Kong's competitiveness and complement the future development of the Chinese mainland. Tsang noted that developing Hong Kong's education services will bolster the pluralistic, international and professional outlook of Hong Kong, and make the best use of social resources in the non-government sector to provide more opportunities for local students to pursue degree education. In recent years, the HKSAR government has introduced a series of measures to internationalize local schools and institutions. The number of non-local students in Hong Kong reached 9,200 in the 2008-09 school year, representing a rise of 16 percent over the previous year. The education authority will explore the possibility of allowing Chinese mainland's senior secondary students to study in Hong Kong. They may be allowed to take short-term courses offered by Hong Kong's degree-awarding tertiary institutions, or pursue senior secondary education at non-public schools in Hong Kong. Apart from targeting Chinese Mainland students, the local education authority will also encourage local higher education institutions to step up exchange and promotion in Asia. The government also considers that the self-financing higher education sector has room for further expansion and is an important component of education services. At present, there are three self-financing degree-awarding tertiary institutions in Hong Kong, providing some 9,000 places in total.

CHINA REPORT # 2 Outline National report: Political front

• CPC, KMT signal goodwill as Ma takes chairmanship(18th October)


• Election Law to be amended next week (19th october)

• Taiwan leader won't rule out Hu meeting(20th October)

• Hijacked Chinese bulk carrier heading northwest (20th October) • EU naval force says Chinese hostages taken by Somali pirates seem to be

fine(20th october • China voices opposition to Dalai Lama's visit to so-called "Arunachal Pradesh"

(20th October) • China vows to save crew held by Somali pirates(21st October)

Foreign relations

• Chinese vice president arrives in Bucharest to start visit to Romania(18th October)

• Chinese vice president puts forward four-point proposal to further China-Romania

ties(19th October)

• Trade between China, Russia down 34.9% in first nine months(20th October)

• Chinese vice president meets leaders of Romanian parliament(20th October)

• Chinese vice president back to Beijing after European visit (21ST October)

• China looking to use stake in PoK as bargaining chip?(21st October)

• US envoy on DPRK sanction visits Beijing(21st October)

• Chinese, U.S. presidents in phone link on ties, climate change(21st October)

•

Economic front

• Follow-up Supply to Determine Growth Potential for Chinese Real

Estate Companies (18th October)

• Cooperation to help lure tourists back(19th October)

• Chinese airline set to fly in by year-end (19th October)

• China's economic recovery to pick up momentum in 2010(19th

October)

• The Three Gorges Project Months From Completion (19th October)

• China to Comply with WTO Auto Parts Ruling(19th October)

• China's GDP growth to top 7% in first three quarters(19th October)

• ADB grants $500,000 for China's rural pension system (20th

October)


• BOC Vice-President Zhu Min leaves post for job change(20th

October)

• China's larger IMF role poses questions(20th October)

• SOEs see Jan-Sept profits down 17.6%(20th October)

• Hanlong Mining invests $200m in Australian firm(20th October)

• Promotion of Shanghai World Expo 2010 held in New York(20th

October)

• Construction of Taipei pavilion for Shanghai Expo to start next

month (20th October)

• China's water aircraft to take off in 2013 (20th October)

• China's automotive output hits 10 mln mark(20th October)

• China Rare Earth, Siemens to set up joint venture (20th October)

• Baidu, China Unicom in wireless search pact(20th October)

• China Mobile Q3 net increases 2.6%(21st October)

• Chinese shares down 0.17 pct at midday(21st October)

• Copper vaults to new high(21st October)

• Equities soar on robust indicators(21st October)

• Experts beware Yuan rise as hot money risk brews(21st October)

• FACTBOX: China's investment in ASEAN countries(21st October)

• Gold producer eyes fresh overseas deals(21st October)

• Allianz, Amex retain ICBC stake(21st October)

• Auto industry drives past major milestone(21st October)

• Central govt T-bonds see triple subscription in Hong Kong(21st

October)

• China's first 'overseas' bond attracts strong demand(21ST October)

• Trade fair sends strong signal of export upturn(21st October)

• Minsheng sees Jan-Sept net profit up 18%(21st October)

• China to scrutinize state-owned firms' hedging deals(21st October)

• New-type explosive detectors used for Shanghai World Expo(22nd October)


Social front • President, premier stress energy resource tech education(18th

October) • 'Experience China in Israel' cultural event kicks off (18th October)

• Surge in returning Chinese experts(19th October)

• Relic hunters descend on US, European museums (19th October)

• China, EU focus on social security schemes (19th October)

• PRC 60th anniversary film becomes best seller(19TH October) • Second wave of H1N1 infections hits China(20th October)

• A Copyright Complaint From China(21st october) • Chinglish to get the axe in Shanghai for World Expo (23rd october)

Ethnic front

• China "dissatisfied" with Uygur separatist's Japan visit(20th October)

Environmental front

• Experts map out low carbon city strategy(20th October)

Regional report North Politics Social front Economic front

• World's top urban planners envision new Beijing CBD (19th October)

Northwest Politics Social front Economic front

• Xinjiang imports coal from Mongolia (21st October)


Northeast Politics Social front Economic front Southwest Politics Social front

• China courts sentence six to death over organized crimes(21st October) Economic front South central Politics Social front

• China jails 8 for protests over mystery death(18th October) • China's biggest ever lottery win shrouded by mystery, suspicion(20th October) • Chinese city holds trade fair in Vietnam(20th October) • Stunt keeps 91-year-old man young(20th October)

Economic front

Environmental front East Politics

• President Hu makes inspection tour in Shandong Province(19th October) Social front Economic front

• Chinese president stresses development of renewable energy(19th

October)

• China's Minsheng net profit up 18% in first 9 months (20th

October)

HONGKONG AND MACAU Politics Social front

• 1,000-m-long painting kicks off HK wetland events(18th October) • Macao kicks off music festival with gala concert

Economic front

• Hong Kong stocks close higher(20th October)


• HK's total export volume down 14.1% on year in August(20th October) • HK unemployment rate records first drop(20th October) • Minsheng bank to be listed in HK within 2009(23rd October)

NATIONAL REPORT

Political front

• CPC, KMT signal goodwill as Ma takes chairmanship(18th October) The Communist Party of China (CPC) and Kuomintang (KMT) both expressed wish to

promote cross-Strait trust and common understanding as Ma Ying-jeou took the position

as the KMT chairman on Saturday.

The CPC Central Committee Saturday congratulated the Kuomintang(KMT) on the

convocation of its18th congress, expecting the two parties to deepen mutual trust,

increase exchanges and expand common understanding.

In a reply, the KMT Central Committee said they will work with the CPC for improving

trust and mutual benefits, in a bid to improve the welfare of people on both sides.


At the congress, the KMT again included the "common aspirations and prospects for

peace and development across the Taiwan Strait, "reached between the CPC and KMT in

2005, in its political guideline.

Wu Yongping, deputy director of the Institute of Taiwan Studies, Tsinghua University,

told Xinhua that this gave a positive signal that the KMT pledged again to further

development of cross-Strait relations , which is helpful for further dialogues between the

CPC and the KMT.

At the congress, Ma appointed Lien Chan and Wu Poh-hsiung as KMT honorary

chairmen. They would assist Ma on cross-Strait affairs and external exchanges, according

to Ma.

Hu Jintao, general secretary of the CPC Central Committee, congratulated Lien Chan on

continuing to be KMT honorary chairman and Wu Poh-hsiung on taking the position as

honorary chairman.

The two responded with commitments to peaceful development of cross-Strait relations.

Lien said in a statement that since the two sides resumed systematic talks based on the

1992 Consensus, peace and stability across the Strait have been greatly enhanced and

people's welfare improved.

"We should work even harder to consolidate the five-point common aspirations and

prospects," Lien said.

Wu also noted that the two parties should work together for peace and development with

"sincerity and goodwill."

Zhu Weidong, deputy director fo the Institute of Taiwan Studies, Chinese Academy of

Social Sciences, said, "Through the congress, we can see the KMT will not change its

stance on easing cross-Strait relations, promoting exchanges with the CPC and carrying

on the platform between the two parties."

• Election Law to be amended next week (19th october)

China's top legislature, the National People’s Congress Standing Committee, will

consider amending China's Election Law at a bi-monthly legislative session from Oct 27-

31.The amendment is expected to grant equal election rights to people in the rural and


urban areas.The session will also conduct the third review of the draft amendment of the

State Compensation Law.

• Taiwan leader won't rule out Hu meeting(20th October)

Taiwan leader Ma Ying-jeou said Monday he will not rule out meeting mainland leaders

such as Communist Party of China chief Hu Jintao. "I won't exclude that possibility, but

there's no timetable for that yet," Ma said when asked if he would meet Hu. "At the

moment, we have our hands full with economic issues."

Ma, 59, became chairman of the ruling Kuomintang over the weekend.

Hu previously met Ma's two predecessors, Lien Chan and Wu Poh-hsiung, a major sign

of closer ties across the Taiwan Straits.

Analysts said the most appropriate time could be 2012 or 2013, if Ma gets re-elected.

"There is a lot of uncertainty as to when leaders on both sides can meet. I would say the

best time is in 2012 if Ma gets re-elected," said Lin Cheng-yi, research fellow at the

Academia Sinica's Institute of European and American Studies.

"It looks like cross-Straits relations are the most important of Ma policies," Lin said.

Despite political differences, commercial ties have flourished. The mainland is Taiwan's

largest trading partner with two-way trade worth more than $130 billion, while Taiwan

businesses have poured more than $100 billion into the mainland.

Taiwan's economy has begun depending so much on the mainland that some Taiwan

politicians and analysts worry the mainland could take over the island through economic

means.

Ma said the island needs to diversify its exports to stay competitive and he forecast 4

percent economic growth next year. He also said the island expects to sign a deal similar

to a free trade agreement with the mainland next year that would cut tariffs.

Ma hopes more of the exports to the mainland will be sold in the domestic market,

instead of being re-exported to economies such as the United States and Europe, which

have been harder hit by the steep global downturn.

"It's not possible for us to change the economy based on exports, but we could diversify

the export market, not focusing entirely on the United States or Europe," Ma said.

He said Taiwan will no longer treat the mainland as a factory, but rather as a market.

• Hijacked Chinese bulk carrier heading northwest (20th October)


The seajacked Chinese bulk carrier DE XIN HAI is heading northwest and is now 650 nautical miles off the east coast of Somalia, the EU anti-piracy military organization EU NAVFOR said on Tuesday. Daniel Auwermann, an official of the organization's media center, said the ship is expected to head toward pirate strongholds based in Somalia. The pirates are likely to contact the owner of the ship after they arrived in Somalia and obtained supply, Auwermann said. The ship, carrying about 76,000 tonnes of coal from South Africa to India, was hijacked in the Indian Ocean on Monday, 350 nautical miles northeast of the Seychelles and 700 nautical miles off the east coast of Somalia. British media reported that pirates threatened on Tuesday to kill the 25 Chinese crew members on board if any rescue operation was attempted.

• EU naval force says Chinese hostages taken by Somali pirates seem to be

fine(20th October)

Spokesman of the European Union (EU)naval force John Harbour confirmed on Monday that 25 Chinese people were taken hostages by Somali pirates in the Indian Ocean and they seem to be fine.

Harbour said "the total number held hostages along Somali coastis 146. I can confirm on board the carrier, there are 25 Chinese personnel."

He said: "I know that the UK Maritime Trade Office has spoken to the owner of the ship, to confirm the figure and they are trying to get in touch with the pirates, at the moment to see what their next intentions are. As far as I am aware the ship is heading to the northwest, which would be towards the Somali coast."

Harbour said they send a helicopter to investigate the event. It has detected the bulk carrier and has taken photographs that "there were a number of other people seeing on the dock, and these were clearly crew and they seem to be fine."

A bulk carrier "De Xin Hai" from China was hijacked in the Indian Ocean around noon local time, the EU anti-piracy military organization EU NAVFOR said in a statement on Monday.

EU NAVFOE said in a statement that the ship was hijacked 550 nautical miles North East of the Seychelles and 700 nautical miles off the East coast of Somalia.


"On indication of an attack an EU NAVFOR Maritime Patrol Aircraft, operating from the Seychelles was launched to investigate the incident," the statement said.

The aircraft located the ship and has reported that there are four pirates visible and 2 small pirate craft being towed by the ship.

The statement also said that the bulk carrier was not registered with the Maritime

Security Center Horn of Africa.

• China voices opposition to Dalai Lama's visit to so-called "Arunachal Pradesh" (20th October)

China was firmly opposed to the Dalai Lama's visit to the so-called "Arunachal Pradesh", a Foreign Ministry spokesman said here on Tuesday. China was gravely concerned with reports on the Dalai Lama's visit to the region, Ma Zhaoxu told a regular news briefing. "We believe that this further exposes the Dalai Lama clique's anti-China and separatist nature," said Ma. He reiterated that China's stance on the so-called "Arunachal Pradesh" was consistent and China firmly opposed the Dalai Lama's visit to the region.

• China vows to save crew held by Somali pirates(21st October)

China said on Tuesday it will "make every effort" to free the crew of a cargo ship held by

Somali pirates in the Indian Ocean, something experts said will be best done through

bargaining and diplomatic efforts.

The De Xin Hai ship and its 25-member crew was carrying about 76,000 tons of coal on

its way from South Africa to the port of Mundra, in Gujarat, India, when it was seized by

pirates about 700 nautical miles off the Somali coastline on Monday.

It was the first time a Chinese ship had fallen into the hands of pirates in the Indian

Ocean.

The hijacking happened about 1,000 nautical miles away from a fleet of Chinese

warships escorting merchant vessels through the waters.

Foreign Ministry spokesman Ma Zhaoxu said Tuesday the government had launched an

"emergency response procedure" in the wake of the hijacking and instructed Chinese

embassies and consulates to gather and review information about the incident.


It has also issued warnings to Chinese ships to stay away from the area.

Ma said China will "watch closely developments and make every effort to rescue the

crew and carrier".

On Monday, the European Union's counter-piracy force said an EU maritime patrol

aircraft had located the vessel and counted at least four pirates on the deck. The ship is

now heading northwest and is now 650 nautical miles off the east coast of Somalia.

Daniel Auwermann, an official of the organization's media center, said the ship is

expected to head toward pirate strongholds based in Somalia.

China's Central Television reported that phone calls the ship owner made to the ship and

faxes were not responded to.

The pirates are likely to contact the owner of the ship after they arrived in Somalia and

obtained supply, Auwermann said.

Experts estimate that a reponse from the hijackers will probably come in two days' time

when the pirates have taken the ship to a place where they fell in control.

China's maritime safety administration said it was coordinating with international

maritime agencies to send the escorting fleet into the region to be ready to mount a rescue

operation.

The company that owns the De Xin Hai, which is based in eastern Shandong province,

said on Tuesday it had notified the relatives of the 25 crew about the hijacking.

Twenty-two members of the crew were from Shandong and the other three were from

Liaoning, Hebei and Jiangsu provinces, a company spokesman told Xinhua.

The last time a Chinese ship was attacked by pirates was in December. So far, no

casualties have been reported from the latest incident.

The pirates threatened Tuesday to execute the 25 Chinese crew members if a rescue

operation was mounted.

"We tell China not to endanger the lives of their people with any rescue operation,"

Hassan, an associate of the gang, told Reuters by phone from the pirate stronghold

Haradheere.

De Xin Hai could be brought to Haradheere, or Hobyo, both in the central portion of

Somalia's coastline, Reuters was told.


Foreign relations

• Chinese vice president arrives in Bucharest to start visit to Romania(18th October)

Chinese Vice President Xi Jinping arrived here on Sunday to start his official visit to

Romania after he concluded a visit to Hungary.

In a written statement upon his arrival at the airport, Xi said China and Romania have

enjoyed long-term friendship, and they have enhanced political trust, cooperation in

various areas, and coordination in dealing with international affairs since they forged

diplomatic ties six decades ago.

Noting that the Chinese government values relations with Romania, Xi said his visit

was to cement traditional friendship and reciprocal cooperation by taking the chance of

60th anniversary of bilateral ties.

"I expect to exchange views with the Hungarian leaders on bilateral relations and

international and regional issues of common concern," he said.

He also voiced his belief that the visit would promote traditional friendship and push

forward the comprehensive, friendly and cooperative partnership with Romania.

Romania is the last leg of Xi's five-nation European tour. He already visited Belgium,

Germany, Bulgaria and Hungary.

• Chinese vice president puts forward four-point proposal to further China-Romania

ties(19th October)

Visiting Chinese Vice President Xi Jinping put forward a four-point proposal to boost

China-Romania relations when meeting with Romanian President Traian Basescu here on

Monday.

The proposal includes maintaining the consistency of high-level exchanges, promoting

economic and trade cooperation, increasing exchanges in the areas of education, science,

culture and health, and enhancing coordination and cooperation on the international

arena.

Xi said the Chinese government encouraged Chinese enterprises to invest in Romania's

infrastructure and explore cooperation opportunities in tourism and agriculture.

Romania is welcome to establish a cultural center in China and participate in the 2010

Shanghai World Expo, he said.


Romania was the third nation in the world to forge diplomatic ties with the People's

Republic of China following the Soviet Union and Bulgaria.

China-Romania relations have developed steadily over the past six decades despite

drastic changes in the international situation, Xi said.

Chinese President Hu Jintao's visit to Romania in 2004 lifted the bilateral relations to a

comprehensive, friendly and cooperative partnership, he emphasized.

"Looking back at the past 60 years, friendship and cooperation have been the

mainstream of China-Romania ties all the time," said Xi.

He said China-Romania relations were able to stand the test of time because the two

countries had stuck to the principle of mutual respect, equity and mutual benefit, their

leaders viewed and developed the relations from a long-term and strategic perspective,

and the deep-rooted friendship between the two peoples constituted a solid foundation for

friendly cooperation.

For his part, Basescu said Xi's visit, which coincided with the60th anniversary of the

establishment of Romania-China diplomatic relations, attested the Chinese government

and people attaching importance to the development of Romania-China relations.

Under the new circumstances, Romania is ready to enhance relations with China and

expand economic and trade cooperation with China, he said, reiterating that Romania's

president would attend the Shanghai World Expo no matter what political changes could

occur in Romania by that time.

He reaffirmed that Romania would continue to adhere to the one-China policy and

support China's stance on issues relating to Taiwan, Tibet and Xinjiang.

• Chinese vice president meets leaders of Romanian parliament(20th October)

Visiting Chinese Vice President Xi Jinping on Monday held separate talks with Mircea

Geoana, speaker of Romania's Senate, and Roberta Anastase, speaker of the Chamber of

Deputies of Romania.

During his meeting with Geoana, Xi said the establishment of diplomatic ties between

China and Romania 60 years ago was a milestone in the development of bilateral

relations.


Despite the changing international situation the two peoples have always respected

each other, treated each other equally and valued each other's interests and concerns

during the past six decades, Xi said.

The history of the friendly exchanges between the two countries in the past 60 years

indicates that the two peoples are reliable all-weather friends and all-around partners, he

said.

Xi said his visit is aimed at taking the 60th anniversary of the establishment of

diplomatic ties between China and Romania as a new starting point to consolidate

friendship, deepen cooperation and push forward China-Romania relations in the next 60

years.

Geoana said that Xi's visit to Romania on the occasion of the 60th anniversary of

Romania-China relations is of great importance and will definitely promote the

development of the all-round friendly cooperative partnership between the two countries

and lift the bilateral ties to a new height.

All Romanian political factions are highly consistent in developing Romania-China

relations and are willing to strengthen the all-round pragmatic cooperation with China, he

said, noting that the Romanian parliament is ready to make contributions in this respect.

During his meeting with Anastase, Xi said China-Romania relations have maintained

steady development since the two countries forged diplomatic ties 60 years ago.

China highly appreciates Romania's support on major issues relating to Taiwan, Tibet

and Xinjiang which concerns China's sovereignty and territorial integrity, he said.

The recent years have witnessed frequent exchanges of high-level visits, growing

political mutual trust, fruitful economic and trade cooperation, and various cultural and

educational exchanges, he added.

China highly values the bilateral friendly relations with Romania and expects to work

with Romania to expand their pragmatic cooperation and push the bilateral ties to a new

height, Xi said.

Anastase said that the past 60 years have seen frequent exchanges between the two

countries' parliaments.


The Romanian parliament hopes to further strengthen exchanges with China's National

People's Congress and is ready to help promote economic and trade cooperation between

the two countries, she said.

Both Geoana and Anastase reaffirmed that the Romanian parliament would never

change its stand on the one-China policy.

The Chinese vice president arrived here on Sunday on an official visit to Romania,

which was the last leg of his five-nation European tour.

• Trade between China, Russia down 34.9% in first nine months(20th October)

Trade between China and Russia in the first three quarters topped $28.04 billion, down

34.9 percent from the same period last year, said a report from the General

Administration of Customs of China Monday.

Chinese exports to Russia in the first nine months stood at $12.01 billion, down 48.9

percent year-on-year, and imports stood at $16.03 billion, down 17.9 percent year-on-

year.

Trade between the two countries topped $4.07 billion in September, down 25.8 percent

from the same period last year, but up 19.9 percent from August.

Chinese exports last month stood at $1.77 billion, down 45.6 percent year-on-year, and

imports stood at $2.3 billion, up 3.2 percent year-on-year.

"The month-on-month trade increase in September indicates trade between China and

Russia has finished an adjustment period and is ready for recovery," said Zheng

Yuesheng, director of the administration's Department of Statistics.

Trade between China and Russia topped $56.83 billion in 2008, up 18 percent from the

previous year, according to the administration.

• Chinese vice president back to Beijing after European visit (21ST October)

Chinese Vice President Xi Jinping concluded his trip to five European nations and

returned to Beijing Wednesday morning.

The fortnight visit had taken Xi to Belgium, Germany, Bulgaria, Hungary and

Romania.


During his stay in Belgium, Xi attended an "Europalia-China" art festival. He was also

present at China's guest of honor events at 2009 Frankfurt Book Fair when he was

visiting Germany.

Xi made the visit at the invitation of Belgian Prime Minister Herman Van Rompuy,

German Chancellor Angela Merkel, Bulgarian Vice President Angel Marin, Hungarian

President Solyom Laszlo and Romanian President Traian Basescu.

• China looking to use stake in PoK as bargaining chip?(21st October)

The Chinese foreign ministry on Tuesday did nothing to justify its decision to invest in the Neelam-Jhelum hydroelectric project in Pakistan Occupied Kashmir, which has drawn India's ire. The Chinese foreign ministry spokesman Ma Zhaoxu evaded a directly reply to questions on why China was investing in the disputed area. Indications are that China does not want the issue to come in the way of a smooth dialogue when the foreign ministers of the two countries meet in Bangalore on October 27. "The Kashmir issue has been left over from history. Pakistan and India should properly handle it. We hope there will be peace and stability in South Asia," Ma said responding to a question about India's protest over the proposed Chinese investment. Ma was asked by another reporter how Chinese investment will help India and Pakistan to resolve the Kashmir problem. He repeated more or less the same words without trying to explain Beijing's decision. The ministry spokesman's refusal to justify a decision taken during the recent meeting between Chinese president Hu Jintao and Pakistan prime minister Yousuf Raza Gilani may suggest that Beijing is taking a second look at its move to invest in POK. India had earlier reacted to the move saying: "The Chinese side is fully aware of India's position and our concerns about Chinese activities in Pakistan-occupied Kashmir. We hope that the Chinese side will take a long term view of the India-China relations, and cease such activities in areas illegally occupied by Pakistan." The issue is expected to come up when Indian foreign minister S.M.Krishna meets his Chinese counterpart Yang Jiechi on October 27. The Chinese foreign ministry today confirmed that Yang will attend the trilateral meeting between the foreign ministers of India, Russia and China in Bangalore. Yang and Krishna will will hold a separate meeting to exchange views on bilateral ties and regional and international issues of common concern, Ma said.


China is also putting pressure on India to stop the proposed visit of the Dalai Lama to Arunachal Pradesh ahead of the forthcoming meeting between the Indian and Chinese foreign ministers. China was firmly opposed to the Dalai Lama's visit to what he described as "the so-called Arunachal Pradesh". Beijing claims that Arunachal Pradesh is part of its own territory and describes it as "South Tibet". "We believe that this further exposes the Dalai Lama clique's anti-China and separatist nature," Ma said. China seems to suggest that Dalai Lama's visit to Arunachal Pradesh will further the cause of separatists seeking an independent Tibet. He said India and China have agreed to further advance their strategic cooperative partnership by holding a series of commemorative activities, including a "country festival" to mark the 60th anniversary of establishing official diplomatic ties in 2010.

• US envoy on DPRK sanction visits Beijing(21st October)

A United States envoy charged with sanctions on the Democratic People's Republic of Korea (DPRK) is visiting Beijing from Monday to Tuesday, a Chinese Foreign Ministry spokesman said here Tuesday.

"During his stay in Beijing, Philip Goldberg, the U.S. coordinator for United Nation Security Council Resolution 1874, met with Chinese officials and they exchanged views on the implementation of the UN resolution," spokesman Ma Zhaoxu told a press briefing.

The resolution, adopted in June, imposed a broad range of strict financial and trade sanctions on the DPRK.

Ma said it was in the fundamental interests of all parties to press denuclearization on the Korean Peninsula, safeguard peace and stability in northeast Asia and resume the six-party talks.

"China will keep close consultation and contacts with all parties to fulfill the goals,"

Ma said.

• Chinese, U.S. presidents in phone link on ties, climate change(21st October)

Chinese President Hu Jintao and his U.S. counterpart, Barack Obama, exchanged views

on bilateral ties and climate change during a phone conversation Wednesday morning.

Obama expressed appreciation over China's contribution to the success of the G20 Pittsburgh summit in September, saying that he looked forward to visiting China in


November and discussing with Hu issues of mutual concern. Looking forward to exchanging views on their bilateral relations and important regional and international issues with Obama, Hu said, "China is ready to work with the U.S. side to ensure a successful visit by President Obama and further promote the positive, cooperative and comprehensive relationship between the two countries."

On climate change, Hu said the Copenhagen Conference to be held in December would be an important meeting of the international community in efforts to tackle climate change.

It conforms to the interests of all parties concerned, including China and the United States, to strive for a wide consensus and a successful Copenhagen Conference on the basis of the U.N. Framework Convention on Climate Change and the Kyoto Protocol, under the principle of "common but differentiated responsibilities" among developed and developing countries, and in line with the Bali Roadmap, Hu said.

"Although problems remain in talks for a final deal, there are hopes for a positive result at the Copenhagen Conference as long as the convening parties work together closely," he said.

It is essential that any result of the conference should embody the basic principles of the U.N. Framework Convention on Climate Change and the Kyoto Protocol, and lock on the achievements of the Bali Roadmap, he added.

"With shared challenges and interests in dealing with climate change, cooperation between China and the United States not only benefits collective global efforts against the problem, but also is highly significant for the progress of their relations," said the Chinese president.

China was ready to work with all sides concerned, including the United States, to enhance coordination and cooperation for a positive result at the Copenhagen Conference, a better collective fight against climate change and a greater contribution to sustainable development worldwide, he said.

For his part, Obama said as the Copenhagen Conference is imminent, the United States

is willing to work with all parties concerned to push for achievements of the meeting.

Both the Untied States and China have taken important measures in dealing with climate

change. The two sides should make concerted efforts to push for the adoption of concrete

and meaningful steps in facing up to the challenges of climate change at the Copenhagen

Conference, and to make the conference a success, he said.

• Chinese VP's Europe tour of great significance: senior diplomat(21st October)


A senior foreign ministry official on Wednesday described Chinese Vice President Xi

Jinping's visit to five European countries as one that not only promotes country-to-

country relations, but also pushes for cooperation in dealing with the global economic

crisis.

Xi paid a visit to Belgium, Germany, Bulgaria, Hungary and Romania between Oct. 7

and Oct. 21.

Deputy Foreign Minister Zhang Zhijun summed up the significance of the visit to

reporters who went on the trip to Europe.

PROMOTING BILATERAL, SINO-EU RELATIONS FOR STEADY, HEALTHY

DEVELOPMENT

Zhang said that during talks with leaders of the five European countries, Xi reiterated

the willingness and preparedness of the Chinese government and people to further

relations with these five countries on the basis of mutual respect, equal treatment and

non-interference in each other's internal affairs.

Xi exchanged views with these leaders on the status quo and future of bilateral and

Sino-EU relations which China aspires to further develop.

One of the topics raised during Xi's meetings with these leaders was to look further

into the future and see where China and these countries could strike cooperation for

sustainable development.

He also pointed out areas of cooperation that could bring tangible benefits to people

from cooperation in their respective countries.

PROMOTING ECONOMIC COOPERATION IN FACE OF GLOBAL

FINANCIAL CRISIS

Zhang said leaders of the five European nations paid much attention to the measures

China had adopted to fight the global financial crisis and its effects, and spoke highly of

the good momentum of China's economic growth, which would boost global economic

recovery.

During his meetings with political and business leaders of the five countries, Xi

reiterated China's firm opposition against protectionism and its willingness to jointly

tackle the global financial crisis with Europe, calling on countries to strengthen

cooperation and expand trade.


Xi attended the signing ceremonies of five economic and trade agreements and six

exchange activities with business communities, including economic and trade forums and

symposiums with local entrepreneurs. These indicated a great desire for cooperation

between Chinese and European businesses.

In addition to the five intergovernmental agreements, Chinese entrepreneurs in the

delegation and the business communities of the five European nations signed 93

cooperation agreements and agreements of intent worth 7.4 billion U.S. dollars. These

highlighted the great potential and prospects of mutually beneficial cooperation between

China and Europe.

PROMOTING CULTURAL EXCHANGES TO ENRICH CHINA-EU

RELATIONS

Zhang said to encourage cultural exchanges was the highlight of Xi's visit. During his

visit, Xi attended two grand cultural events, the "Europalia- China" art festival in

Belgium and the 2009 Frankfurt Book Fair in Germany.

China, being the guest of honor at the two cultural events, actively participated in the

activities to introduce traditional Chinese culture and China's great cultural achievements

since the founding of the People's Republic of China in 1949, Zhang said.

This was another opportunity for China to showcase the splendid, subtle power of the

Chinese culture following the 2008 Beijing Olympic Games, Zhang added.

Xi's presence at the two events indicated that China attached great importance to

encouraging cultural exchanges, promoting Chinese culture on the world stage and

building soft power, Zhang continued.

While speaking at the opening ceremony of the Frankfurt Book Fair, Xi said China

was willing to take part in international cultural exchanges and to work together for

building a harmonious world of lasting peace and common prosperity.

Building a harmonious world meant enhancing cultural exchanges among countries

across the world and promoting communication among peoples from different cultural

backgrounds, Xi said in the speech.

Cultural exchanges needed mutual understanding, respect, and overcoming biases, Xi

explained, adding that differences between ideologies, social systems and development

models should not become hurdles for cultural exchanges.


Xi added that China was willing to learn from various cultures and civilizations in the

world while carrying forward the country's own splendid national culture to further

enrich the spirit of the Chinese people.

German media observed that Xi's speech, which won warm applause at the ceremony,

reflected China's self-confidence.

Zhang said Xi, who visited a number of institutes related to Chinese culture and

bilateral cultural exchanges during his trip, also paid much attention to the future

development of China-EU cultural exchanges.

Xi's visit was a great contribution to the development of China-EU relations, bilateral

cultural exchanges and mutual understanding, Zhang concluded.

Economic front

• Follow-up Supply to Determine Growth Potential for Chinese Real

Estate Companies (18th October)

The "Sales Rankings of Chinese Real Estate Companies for Q3 2009" report released on

October 9 by CRIC (China) Information Technology Co., Ltd. in cooperation with the

China Real Estate Appraisal and Shanghai E-house R&D Institute shows that both the

"No.1"Chinese real estate company in terms of Q3 sales and the "No.1" Chinese real

estate company in terms of other results for the quarter have changed. Privately owned

Chinese developers, best represented by Evergrande Real Estate Group, are posing

challenges for their traditionally advantageous public rivals by rapidly expanding their

market share while the "traditional No.1"Chinese real estate company is faced with great

challenges. Sina Leju was the first media source to announce the release of this report.

What the new rankings reveal is not merely the quantitative growth, said Dr.

Shengping Long, director of China Real Estate Appraisal. As follow-up supply

determines potential for a company's growth, huge reserves of land that meets market

requirements are expected to give a strong push to real estate developers' growth or even

reshape the Chinese property market.

The CRIC (China) report indicates that with low-priced land reserves of more than 51

million sqm, Evergrande deservedly became China's largest "landlord". Evergrande was

followed by Country Garden Holdings Company Limited, the previous largest Chinese


"landlord". Country Garden's land reserves were maintained at 43.6 million sqm. Agile

Property ranked third with land reserves of 29.5 million sqm.

The CRIC (China) Research Center believes the capacity of selling fast and high levels

of land reserves at Evergrande, Country Garden and Agile Property will be conducive to

their development, allowing these major real estate companies to enjoy huge potential for

long-term growth.

Analysts note that land reserves are a major measurement for real estate developers.

As one focusing on provincial capitals with the highest potential for growth, Evergrande

entered major Chinese provincial capitals each with a population of at five million plus

and their suburbs early, acquiring a huge amount of cost-effective, quality land reserves.

Currently, Evergrande is conducting property development in 17 Chinese provincial

capitals andmunicipalities across China, including Tianjin, Chongqing, Guangzhou,

Shenyang, Chengdu and Wuhan. In these cities, Evergrande operates 44 projects, or

more than 80 percent of its total number of development projects.

Last year, when its IPO plan was suspended, Evergrande was criticized for its

excessive land reserves. However, value of the huge reserves has now beenrecognized

by the market and these low-priced reserves are making Evergrandethe envy of its rivals

that once again have to scramble for high-priced landat any cost.

In addition, as the Chinese property market has widely recovered since Q22009, real

estate developers across China are aggressively acceleratingdevelopment of new projects.

Among them, Evergrande's floor space underconstruction totals 17 million sqm, the

highest of its kind in China, while Vanke has raised its development target for the full-

year 2009 from 4.03million sqm to 5.85 million sqm, representing a rise of up to 45

percent. Inthe short term, newly started projects and floor space under

constructionperfectly reflect those real estate companies' short-term growth potential.

Continued increases in newly started projects and floor area underconstruction are

bound to drive up real estate companies' results in the shortrun, and rankings of Chinese

real estate companies for the full year of 2009will be even more worth looking forward

to, Long added.

• Cooperation to help lure tourists back(19th October)


Slowly rebounding from a plunge in tourist numbers in the wake of the global economic

crisis and the H1N1 flu, the tourism industries of China and the United States are hoping

that collaboration will bring many happy returns.

Through joint efforts, the two countries can embark on a "win-win" journey because

they are major sources of tourists to each other, Shao Qiwei, head of the China National

Tourism Administration (CNTA), said in an interview with China Daily.

The United States is China's fourth largest tourist source market, and the biggest

among distant countries.

China is forecast to be the world's fourth-largest source of outbound tourists by 2020,

with 100 million Chinese tourists traveling abroad, according to the United Nations

World Tourism Organization.

Since Chinese tour groups were allowed to travel in the U.S. in June last year - thanks

to an easing of U.S. visa policy - the number of mainland tourists to the U.S. has grown

quickly.

According to the statistics released by the U.S. Department of Commerce, the number

of tourists from the Chinese mainland and Hong Kong Special Administrative Region

soared by nearly 28 percent, year on year. In January, 70,987 mainland tourists visited the

U.S., becoming the only international group to register growth that month.

But since last year, both countries' tourism industries have suffered from the financial

recession and the H1N1 flu.

According to the CNTA, the number of foreign visitors to China dropped 6.8 percent,

to 24 million last year compared to 2007. Among them, the number of US visitors to

China has dropped by 6.04 percent to 1.79 million last year.

Growth did not resume until July. The number of American tourists to China grew by

10.3 percent over the same period last year, partly due to a low base because of the 2008

Beijing Olympic Games.

Struck by rampant fears about the flu, the U.S. also saw fewer Chinese tourists since

May, when many Chinese tourists abandoned U.S.-bound tour plans. Those

disadvantages make bilateral cooperation in tourism critical, Shao said.

"China has not changed its policy of encouraging Chinese citizens to travel abroad

even during the global economic recession," he said.


On Thursday, a third meeting between China's 26 provincial tourism chiefs and their

counterparts from 50 U.S. states will be held in Orlando, Florida. Both sides will discuss

increased cooperation to promote tourism and sign cooperation agreements, he said.

The extended cooperation would not only help build stable, longstanding relations

between the two countries, but also balance and further explore cooperation in trade and

culture, he said.

"Looking ahead, the two countries' tourism cooperation will have broad prospects and

a profound influence," he said.

Shao will attend a gala dinner in New York on Oct. 19 promoting the Shanghai 2010

World Expo. The event, which opens next May and will run for six months, will give

China's tourism industry a strong boost amid the effects of the economic slowdown, he

said.

More than 70 million tourists, exhibitors and media representatives are expected to

attend the expo. The CNTA has named the year 2010 as the Year of World Expo and has

organized a series of promotions in China's major source markets, including Japan, the

Republic of Korea, the US, Russia and Southeast Asia.

Major media and large travel services in these markets will be invited to China for the

fair promotions.

• Chinese airline set to fly in by year-end (19th October)

With Kolkata airport on the verge of being modernized, several international airlines are showing interest to start new flights from the city. Air China is all set to start direct services by the end of this year. It will be the seventh international carrier to start operation in the city in the last two years. Kolkata airport director R Srinivasan said Air China delegates are expected to chalk out the details of their schedule and announce the launch of their new flights on Monday. At present, Air China operates from Delhi to three Chinese destinations Bejing, Shanghai and Chengdu. Low-cost Chinese carrier China Eastern already connects Kolkata with Kumling four days a week. Last week, Air Asia announced its direct flight from Kolkata to Kuala Lumpur from November 19. The other airlines that started operations in the last two years are


Kingfisher, Jet, Air India Express, Best Airline and United Airways. Two major airlines British Airways and Gulf Airline withdrew their operations and others reduced their frequencies three years ago. After this lull, travel agents say its encouraging to see that international airlines are showing interest in the city again. Even Etihad Airways and Qatar Airways are planning to restart some flights. "We held talks with the officials of these two airlines last year. Hopefully before the new airport is constructed, few other airlines will start services from the city," said Travel Agents' Federation of India regional chairman Anil Punjabi. The good response received by China Eastern motivated Air China to show interest in Kolkata, said a senior airline official. Figures indicate more than 90% bookings on an average. The aircraft remains chock-a-block during the peak seasons.

• China's economic recovery to pick up momentum in 2010(19th October)

China's economy has passed the worst and recovery will pick up momentum next year, according to a prominent Chinese economist. Yao Jingyuan, chief economist at the National Bureau of Statistics, identified November 2008 to February 2009 as the trough for the recession. But he believed that China's current economic recovery is gaining speed, which will set the stage for faster growth in 2010. China's GDP is expected to grow by about 8.3 percent year on year for 2009, according to a report released earlier by the Chinese Academy of Social Sciences. China's premium income in the first nine months rose 8.1 percent from a year earlier to $125.63 billion, fiscal revenue rose 33 percent from a year earlier to $82.13 billion in September, new yuan-denominated loans in September rose to $75.68 billion from August's $60.1, and foreign exchange reserve hit a new high of $2.27 trillion by the end of September, up 19.26 percent year on year, according to statistics released by the government last week.

• The Three Gorges Project Months From Completion (19th October) The last stage of the Three Gorges Project will be finished at the end of 2009 after 17

years of work. Upon the completion of construction, the power plant will be able to

generate 100 billion kWh annually. Up to the end of June 2009, RMB 184.9 billion had

been invested in it, generating more than 320 billion kWh. Ocean-going vessels had

traversed the shiplock nearly 50,000 times, transporting over 300 million tons of cargo.

Its initial design called for the installation of 26 generators with an annual capacity

equivalent to 50 million tons of raw coal. Cheap and clean energy generated by the

project has fueled central, eastern and southern China. To date, about 1.27 million


people have been relocated to make way for the project, and the relocation work for the

final stage has been basically completed.

• China to Comply with WTO Auto Parts Ruling(19th October) According to the Ministry of Industry and Information Technology (MIIT), China will

revise its tariffs on imported auto parts. As a result, beginning September 1 China

reduces its auto part duties from 25 percent to 10 percent. China had argued that its

original high tariffs on auto parts imports were needed to prevent automakers in China

from evading vehicle import duties, which can be done by importing cars in component-

by-component shipments. At the end of last year the WTO made its ruling that China

should revise the tariffs within a certain period. Officials of the MIIT have announced

the tariff has been revised and published by the relevant department.

• China's GDP growth to top 7% in first three quarters(19th October)

China's gross domestic product (GDP) growth in the first three quarters should exceed 7

percent, Xiong Bilin, deputy director general of the Industry Department of the National

Development and Reform Commission (NDRC), said Monday.

The specific GDP growth figure in the first three quarters is scheduled to be released

Thursday.

Few difficulties stood in the way of China realizing its annual target -- made early this

year -- of 8 percent GDP growth year on year, said Xiong at a press conference

highlighting production overcapacity.

The government's 4-trillion-yuan ($586 billion) stimulus package, rolled out in

November last year, contributed much to China's economic recovery, Xiong said.

China's GDP growth was 7.1 percent in the first half over the same period last year with

6.1 percent in the first quarter and 7.9 percent in the second.

The NDRC would mainly redress production overcapacity in six sectors, including steel,

cement, plate glass, the coal-chemical industry, polycrystalline silicon and wind power

equipment, said Xiong.

The NDRC also warned of obvious production overcapacity in sectors like electrolytic

aluminum, ship manufacturing and soybean oil extraction.


• ADB grants $500,000 for China's rural pension system (20th

October)

The Asian Development Bank (ADB) is providing a technical assistance grant of

$500,000 to help China establish an effective rural pension scheme that can help the

country meet its goal of universal coverage by 2020.

In a press release, the Manila-based ADB said the grant will be used to improve the

policy and regulatory framework for a government-run pilot pension scheme to be carried

out this year in 200 rural counties across the country.

The government is targeting full participation in urban and rural pension systems by

2020.

The need for comprehensive pension coverage has been heightened by the rising age of

the rural population, the sharp slump in the number of farmers, and the return of millions

of migrant workers to their rural hometowns due to the financial crisis, the ADB said, and

a universal social security system is crucial for bridging the urban-rural divide.

The pilot scheme will apply a new formula that combines a basic government-funded

'subsistence' pension with individual account contributions, which has shown signs of

promise as the government sets to overhaul the lagging rural pension system.

• BOC Vice-President Zhu Min leaves post for job change(20th

October)

Zhu Min, vice-president of the Bank of China (BOC), one of the country's top four

lenders, has resigned because of job change, BOC announced in a statement to the

Shanghai Stock Exchange Monday.

The Beijing-based lender said it received the letter of resignation from Zhu on Oct 16.

The lender did not mention Zhu's new post in the statement.

• China's larger IMF role poses questions(20th October)

New rights often bring new responsibilities and, with China set to take on a larger

decision-making role at the International Monetary Fund (IMF), experts warn it may be

pressured to shoulder a heavier burden.


Daisuke Kotegawa, IMF senior resident representative in Japan, said on Friday the

organization was bringing in reforms that would mean China's voting power at the IMF

table would be second only to that of the United States.

Some countries have said that with the additional power, China should take on more

"responsibilities" and "duties".

"China must know what are the duties it should have and what are not," replied Zhao

Xijun, a finance professor at Renmin University of China. "It should not shoulder

responsibilities that are unaffordable for it."

Neither Kotegawa nor Zhao could be sure when China's share of voting power might

increase.

"It's something to be discussed and decided at the negotiating table," said Zhao. "A deal

could be struck soon, but it could also take a very long time everything is possible."

Currently, at the IMF table, the US holds about 17 percent of votes and, consequently,

has the de facto veto on decisions because, to make a decision, the organization requires

85 percent of overall votes.

At the moment, Japan, with more than 6 percent of votes, is the second-most influential

voting block, with China holding just 3.72 percent. EU member states as a whole have 32

percent of voting rights.

Experts have also warned that even if China gets a larger share of the votes, it may not

necessarily get more say around the IMF board table.

Zuo Xialei, chief economist with China Galaxy Securities, said that as a developing

country, China must continue to enhance its overall national standing and learn to explain

its position in a more effective way if it hopes to persuade other countries to support it.

China has taken on a larger role on the world stage since the start of the world financial

crisis, in part because the country has continued to enjoy relatively strong economic

growth and maintained an unscathed financial system. Some in the international

community have pinned hope on China helping to construct an improved global

economic order through major international organizations, such as the World Bank and

IMF.

China agreed to buy a new type of bond issued by the IMF, investing about $50 billion,

in a bid to help the organization tackle financial challenges.


And Bank of China Executive Vice-President Zhu Min, a former World Bank economist,

is reportedly being tipped as a future vice-president of the IMF.

Joining the call for reforming the voting mechanism of the IMF, Yi Gang, China's central

bank vice-governor, said early this month that China supports a "reasonable automatic

quota adjustment process" to "reflect changes in the relative economic positions of its

members and avoid serious quota share misalignment".

• SOEs see Jan-Sept profits down 17.6%(20th October)

Profits of China's State-owned enterprises (SOEs) continued to fall in the first nine

months from a year earlier, but the decline was smaller than those of the first eight

months.

Profits in the country's SOEs fell 17.6 percent year-on-year in the first nine months to

936.61 billion yuan ($137.13 billion), two percentage points lower compared with the

Jan-Aug period, the Ministry of Finance (MOF) announced Monday.

The MOF statement did not give the September figure alone but said it was 12 percent

lower than the August profits.

Profits of central SOEs totaled 679.68 billion yuan from January to September, down 13

percent from a year earlier. Central SOEs covered 133 centrally-administered SOEs and

82 SOEs affiliated to central departments.

Business revenue of SOEs fell 1.7 percent year-on-year to 15.84 trillion yuan in the first

nine months.

• Hanlong Mining invests $200m in Australian firm(20th October)

Hanlong Mining Investment Pty Limited signed in Hong Kong Monday a subscription

agreement with Australia's Moly Mines Limited to become the controlling shareholder of

the Australian company.

Hanlong Mining Investment Pty Limited is an Australian subsidiary company wholly

owned by a privately run Chinese corporation -- Sichuan Hanlong Group Ltd.

Following a $200-million investment into Moly Mines' stock, Hanlong will become the

controlling shareholder with a 55.3 percent shareholding in the company.

Hanlong will also provide $500 million in the form of project finance for the

development of the world class SpinifexRidge Molybdenum Copper mine, which is

wholly owned by Moly Mines.


The investment will require final approval from the Australian Foreign Investment

Review Board and relevant Chinese authorities prior to completion.

This acquisition is the second major overseas acquisition for Hanlong Group, which

previously invested in mining development in Africa.

Hanlong Group Board of Directors Representative Liu Han said it is extremely

meaningful for a privately held Chinese company to have gained authority to develop a

mine in Australia.

Liu said that they have already communicated with Australian government and he is

confident that the project will be carried out successfully.

Moly Mines's Chief Operating Officer Collis Thorp said the project is ready to develop as

most of the engineering and budget work have been done.

"It would take us 18 months to 21 months to construct the mine and this agreement will

facilitate that," Thorp said that in two years the project should be in full production.

Sichuan Hanlong Group Limited has a wide portfolio of investments including electricity

production, infrastructure development, mining resources development, pharmaceutical

production, food and alcoholic beverages and some other ones.

The Chinese private enterprise has got more than 12,000 employees and the current assets

of the company are in excess of several tens of billions yuan.

Moly Mines Limited is dual listed on the Australian Stock Exchange and the Toronto

Stock Exchange and wholly owns the Spinifex Ridge Molybdenum Project located in

Western Australia.

The project is the only large-scale molybdenum and copper resource to be discovered

worldwide since 1982. Currently confirmed reserves are 350,000 tons of molybdenum

and 500,000 tons of copper with further potential for increasing these figures.

• Promotion of Shanghai World Expo 2010 held in New York(20th

October)

• Construction of Taipei pavilion for Shanghai Expo to start next

month (20th October)

Construction of the Taipei Pavilion at the 2010 Shanghai World Expo will start next

month, the Taipei city government announced Tuesday.


The exhibition venue was expected to showcase the city to global visitors during the

expo from May to October, Taipei Mayor Hau Lung-pin said at a press conference.

The Taipei pavilion was divided into several areas, including ahuge three-dimensional

theater where visitors can have a virtual tour of tomorrow's Taipei via short movies and

light-and-sound shows.

Two projects, Wireless Taipei and Taipei Infinity, will be demonstrated at the Taipei

pavilion. They are among some 50 "urban best practices area" expo projects, which are

designed to display solutions to urban issues, including energy efficiency to waste

treatment, under the theme of "Better City, Better Life."

Visitors would see Taipei as an international metropolis defined by advanced

technology, cultural diversity and a high quality of life, Hau said.

The construction of the Taipei Pavilion was scheduled to be completed in March, next

year.

The 2010 Shanghai World Expo will remain open from May 1 to Oct.31. It is expected

to attract 70 million visitors, of whom 95 percent will be domestic visitors.

A total of 242 countries and international organizations had confirmed participation as

of last month, according to the official Expo website.

• China's water aircraft to take off in 2013 (20th October)

The first Chinese-made large amphibious aircraft is scheduled to take off in 2013, and ready for mass production in 2015, China Daily reported Tuesday.

The amphibious aircraft, about the size of an Airbus 320, will handle emergency services and military tasks that are difficult or impossible with current aircraft in China today, the newspaper quoted a senior engineer of the manufacturer as saying.

Previously, China has developed large hydroplanes and small amphibious aircraft, said Chen Zhengguo, the project's chief engineer.

But large amphibious aircraft will be more useful in putting out forest fires, carrying out long-range air-sea rescues, and taking on anti-submarine missions, according to the news release by the Aviation Industry Corporation of China (AVIC).

The Chinese-made amphibious aircraft can take off on both land and water.


As it flies at a height of 30 to 50 m over the treetops, the success rate of spreading water over a fire could reach 98 percent.

According to the State Forestry Administration, at least 10,000wildfires occur in the country's forests each year.

Engineers also aimed to develop the amphibious aircraft into one that can help rescue more people on the sea.

Equipped with turboprop engines, it has a maximum take-off weight of 49 tonnes, able to carry up to 50 people at one time. Its longest range is 5,150 km, and its highest speed is 560 kph. Emergency medical equipment will be available on board.

Russia, Japan, Canada and the United States already have developed their own

amphibious aircraft.

• China's automotive output hits 10 million mark(20th October)

-- China's production of automobiles since the beginning of this year hit 10 million units

on Tuesday, making it the third country in the world to surpass the annual output mark,

according to the China Association of Automobile Manufacturers (CAAM).

Only the United States and Japan have previously passed the annual production figure

of 10 million.

Chinese Vice Premier Zhang Dejiang referred the achievement as a "milestone in the

Chinese history of auto industry development" in a congratulatory letter to industry

representatives at a celebration sponsored by the CAAM and China Society of

Automotive Engineering at the First Automobile Works (FAW) Group Corp.

headquarters in Changchun, capital of northeast China's Jilin Province.

Participants watched the 10 millionth vehicle -- a new model Jiefang (or Liberation)

truck -- roll off from the assembly line in FAW, China's oldest automotive group founded

in 1953. The company produced China's first domestic model under the Jiefang brand in

1956.


Zhang said in the letter that by meeting the production mark, China had become one of

the world's largest auto manufacturing countries. The achievement was important in

bolstering the country's overall economic growth.

Miao Yu, vice minister of Industry and Information Technology, said at the ceremony

that China was still marching towards its goal of becoming a heavyweight player in the

world's auto market.

"A heavyweight auto manufacturing country has to meet three requirements:

internationally competitive auto brands, considerable global market share and a grasp of

core and new technology development trends in the industry," he said.

China's automotive industry has sustained a robust growth despite the global economic

slowdown this year, thanks to the government support package for the sector at the

beginning of the year.

Under the package, the government lowered the purchase tax on cars with engines

under 1.6 liters from 10 percent to 5 percent, allocated allowances to farmers to upgrade

farm vehicles and to mini-truck and mini-van owners to upgrade their vehicles.

As a result, the country's auto output surged 78.85 percent year-on-year to 1.36 million

units in September, while total sales hit a new monthly high of 1.33 million units, up

77.88 percent from a year earlier, the CAAM announced in a release on Oct. 13.

Dong Yang, vice chairman of the CAAM, said China was under far more pressure

from the global auto emissions control than the circumstances faced by the U.S. and

Japan, when their manufacturers hit the 10-million mark.

"The Chinese government is encouraging the sales of vehicles with small engine

displacements and using new alternative energies to reduce auto emissions," he said.

He said "We expect the government to keep the stimulus policies in effect next year.

"Policies like promoting auto sales in the rural sector are effective in sustaining the

growth momentum of auto sales in China," he said.

He forecast China's auto output this year would surpass 12 million units.

• China Rare Earth, Siemens to set up joint venture (20th October)

China Rare Earth Holdings Ltd. will set up a joint venture in China with Siemen's

OSRAM to produce and sell phosphor products for the lighting industry, China Daily

reported Tuesday.


The joint venture involving an investment of 43.5 million euros(about 64.8 million

U.S. dollars) will be 49.9 percent owned by Silver Mile Holdings Limited, an indirect

wholly-owned subsidiary of China Rare Earth, and 50.1 percent by OSRAM, China Rare

Earth said in a statement.

The joint venture will have an annual production capacity of up to 2,000 tonnes of tri-

band phosphor when it is in full operation, with the products to be sold in China and the

international market.

The investment of approximately 83.2 million Hong Kong dollars (about 10.7 million

U.S. dollars) will be funded by internal resources and bank financing, China Rare Earth

said in the statement.

• Baidu, China Unicom in wireless search pact(20th October)

Chinese search engine Baidu Inc said yesterday that it has signed a partnership with

China Unicom to provide wireless search for the carrier's 3G mobile subscribers, in a

move to fend off Google Inc's increasing presence in the world's largest mobile

population.

Baidu will preinstall its services, including text, image, MP3 and news search, in China

Unicom's 3G mobile phones, according to the agreement. It will also provide search

services for mobile Internet websites run by the carrier, which plans to launch the iPhone

in China this month.

"We hope that Baidu's cooperation with major telecom providers in China will

accelerate the development of 3G services and allow us to provide the rapidly growing

population of mobile search users better access to information," said Ren Xuyang,

Baidu's vice-president, in a statement yesterday.

But a China Unicom spokesman said the deal with Baidu was not exclusive. He said

Google's services preinstalled in the iPhone would not be impacted by the partnership.

As China launched its 3G service, which enables cell phone users to surf the Internet

via mobile phones, mobile search has become one of the most promising markets for

search engines to expand their service beyond personal computers.

Google has been striving to promote its mobile search service such as Google Maps to

Chinese mobile phone users in recent years.


In 2007, the company announced a partnership with China Mobile to provide mobile

search for the country's largest cell phone carrier. It also said last week that it plans to

launch Chinese-language voice search service to Chinese smart-phone users in the next

several weeks.

According to figures from domestic research firm Analysys International, Google is

still lagging behind market leader Baidu, which takes over 60 percent of the search

market share. But in China's mobile search market, Google's share reached 26.6 percent

in the second quarter of this year, higher than the 26 percent that Baidu clinched.

In May, Baidu reached a deal to provide search service in a value-added service

platform run by China Telecom. The company also announced last month it would launch

mobile search services in Japan, where the 3G market is more mature.

Compared to its deal with China Telecom, which only had 41.73 million mobile phone

users by July, Baidu's partnership with China Unicom seems to be more likely to help the

search engine to ride China's 3G market boom.

China Unicom is the country's second largest cell phone operator, with mobile users

reaching 141 million by July. Although the number is not comparable to the 450-million

cell phone users of China Mobile, the company is believed to be getting wider support

from mobile phone vendors including Nokia, which dominates about 35 percent of

China's handset market.

Zhou Liqian, an analyst from Everbright Securities, said in an earlier research note that

China Unicom might take up over half of China's 3G market by 2011.

According to CNNIC, China's Internet users totaled 338 million by the end of June, of

which mobile Internet users increased 32.1 percent to 155 million

• China Mobile Q3 net increases 2.6%(21st October)

China Mobile Ltd, the world's biggest phone company by market value, posted a 2.6-

percent increase in quarterly profit after reduced prices helped the company attract

customers.

Third-quarter net income rose to 28.6 billion yuan ($4.19 billion) from 27.9 billion yuan

a year earlier, according to figures derived from nine-month earnings reported by the


Beijing-based company yesterday. The carrier was expected to post profit of 29 billion

yuan, the median of seven analysts' estimates in a Bloomberg survey.

China Mobile, the third-worst performing stock on Hong Kong's benchmark index this

year, cut call fees and raised handset subsidies to stem the 29-percent drop in user

additions.

Chairman Wang Jianzhou plans to sustain the company's expansion in lower-income

rural areas as China Telecom Corp and China Unicom (Hong Kong) Ltd focus on high-

speed services in cities.

"For the company's profit to grow, it has to really work on keeping operating costs down

because revenue growth will be slower," Steven Liu, who rates China Mobile shares

"buy" at DBS Vickers Ltd in Hong Kong, said before the earnings announcement.

China Mobile fell 0.7 percent to close at HK$78.75 in Hong Kong yesterday before the

earnings announcement. The stock has advanced 1.2 percent this year, compared with a

56-increase in the Hang Seng Index.

Profit at China Mobile declined for the first time since 1999 in the second quarter as the

economic slowdown weighed on demand and the government reorganized the industry to

raise competition.

Fixed-line operator China Telecom acquired a network from Unicom to enter the wireless

market, while China Unicom bought a landline business.

China Mobile is the worst performing stock among the three Chinese phone companies

this year.

Shares of China Telecom, the country's biggest fixed-line carrier, have climbed 32

percent, while Unicom, the country's second-largest mobile-phone company, has gained

19 percent.

China Mobile's third-quarter sales rose 9 percent to 114.1 billion yuan, according to

derived figures.

Earnings before interest, tax, depreciation and amortization, a measure of operating

profit, increased 5 percent to 57.8 billion yuan, compared with the 58.1-billion-yuan

median estimate of four analysts in the Bloomberg survey.

China Mobile added 15.24 million users in the third quarter for a total of 508.4 million at

the end of September, according to its website.


• Chinese shares down 0.17 pct at midday(21st October)

Chinese shares edged down 0.17 percent by midday Wednesday on profit-taking, fuelled

by losses on Wall Street overnight, dealers said.

The Shanghai Composite Index, which covers both A and B shares, was down 5.24

points at 3,079.22.

"Quick gains in the last two sessions technically need some correction and investors are

cautious before China releases major economic data Thursday, Capital Securities" analyst

Jacky Zhang told Dow Jones Newswires.

Among the economic data to be released by China on Thursday is industrial output and

third-quarter gross domestic product.

The Shanghai A-share index shed 5.60 points, or 0.17 percent, to 3,231.59, while the

Shenzhen A-share index rose 2.59 points, or 0.23 percent, to 1,130.36.

• Copper vaults to new high(21st October)

Shanghai copper rose to near six-week highs yesterday as the dollar fell to its weakest

level in 14 months, boosting the appeal of commodities.

The dollar index, a gauge of its performance versus six major currencies, fell as low as

75.103 yesterday on the view rising unemployment will keep US interest rates near zero,

making dollar-based commodities cheaper for local currency holders.

The greenback's slide lifted oil above $80 a barrel and gold to near record levels, while

global stocks climbed to one-year highs after strong sales numbers from Apple Inc

suggested US consumers are spending more.

"The dollar will continue to move lower in the short term, and that's going to support the

whole commodity market in terms of the price outlook," said Bonnie Liu, analyst at

Macquarie.

While the greenback remains the main catalyst, a slew of US data due later yesterday,

including housing starts and building permits for September and weekly retail sales could

provide some trading cues.

Shanghai's benchmark third month copper SCFc3 climbed 710 yuan ($103.99) to 50,210

yuan a ton at the close, after rising as high as 50,570 yuan earlier, its loftiest since Sept 9.


Three-month copper on the London Metal Exchange MCU3 rose $12 to $6,477 a ton in

early trade, adding to Monday's $225 gain.

The market mood after the LME was generally optimistic with low consumer stocks, a

weaker dollar and Chinese demand seen supporting industrial metals prices into the next

year.

"The Chinese seemed to be most bullish, as they see little evidence that demand for metal

in the country is slowing, while supply is also becoming a problem," MF Global analyst

Edward Meir said in a note. Meir said many of the Western producers were "cautiously

optimistic" given the economic uncertainties.

"The merchants and trading companies were, on balance, more negative on the outlook,

viewing prices to be quite overbought short-term and overly reliant on Chinese buying

instigated mainly by the government," he said.

• Equities soar on robust indicators(21st October)

Chinese stocks rose yesterday, driving the Shanghai Composite Index to a two-month

high, after Vice-Premier Li Keqiang said the nation's economic growth is rebounding.

The benchmark index gained 46.18, or 1.5 percent, to 3,084.45, the highest close since

Aug 13. The CSI 300 Index added 1.5 percent to 3,377.57.

"Exports are likely to recover slightly in the next six months and this should be able to

sustain economic growth," Peter So, head of research at CCB International Securities Ltd,

said in a Bloomberg Television interview in Hong Kong. "We expect consumption in

China to continue to maintain at a higher level."

The Shanghai index is up 69 percent this year as a $586-billion stimulus package and

record lending drove China's rebound from the deepest economic slump in almost a

decade. Data due Oct 22 will show the economy expanded 9 percent in the third quarter,

the fastest pace since September 2008, according to the median estimate of economists

surveyed by Bloomberg.

Economic growth is rebounding month by month, Vice-Premier Li told a conference of

the Association of South East Asian Nations yesterday in Nanning, Guangxi Zhuang

autonomous region.


"Stable government policy and the September economic numbers should boost the

market," said Citic Securities Co analysts led by Yu Jun, in a report. The brokerage

recommended insurers, banks and property developers.

Jiangxi Copper Co, the nation's biggest producer of the metal, climbed 1.3 percent to

41.73 yuan ($6.11). Yunnan Copper Industry Co added 3.2 percent to 31.80 yuan.

China Merchants, the nation's fifth-biggest bank by value, gained 4.7 percent to 16.73

yuan. The bank won approval to raise as much as 22 billion yuan in a right offer. More

than 99 percent of investors voted for the proposed sale at a shareholder meeting on

Monday, Merchants Bank said.

Hang Seng up

Hong Kong stocks rose as higher commodity prices and better-than-estimated earnings

from Apple Inc boosted confidence in the global economic recovery.

Rising commodity prices and earnings that beat estimates should boost confidence in the

economy and the market," said Castor Pang, a research director at CINDA International

Holdings Ltd, a Hong Kong-listed brokerage. "A continued rise in commodity prices

could trigger inflation and prompt some monetary tightening. That may hinder the

market."

The Hang Seng Index rose 0.8 percent to 22,384.96 at the close, with the city's biggest

developers.

The Hang Seng China Enterprises Index, which tracks so-called H shares of mainland

companies, rose 0.7 percent to 13,039.96.

• Experts beware Yuan rise as hot money risk brews(21st October)

Chinese exporters should brace themselves for a steady rise in the value of the yuan while

the steep hiking of asset prices looks set to continue, say analysts studying the

movements of "hot money."

Although the value of the yuan, China's currency, has hovered at around 6.83 to the US

dollar for the past several months, analysts say the rush of international short-term

speculative funds has already begun with China's economy showing signs of

improvement.


The country saw a massive exodus of hot money because of the global financial crisis in

the fourth quarter of last year and the first quarter of this year, said Zhang Ming, an

economist with the Institute of World Economics and Politics under the Chinese

Academy of Social Sciences.

From the second quarter, the situation reversed with an influx of hot money, he said.

No official figures concerning hot money have been released, but analysts have compiled

a scratchy picture from the unusual coincidence of China's increasing foreign exchange

reserves and declining trade surplus and reduced expenditure of foreign investment in

China.

Zhang estimated the amount of hot money inflow at US$88 billion from the second

quarter.

Analysts normally calculate hot money by deducting foreign direct investment and a

trade surplus from the country's foreign exchange reserve increase.

"The shrinking trade surplus and expanding forex reserves in the third quarter this year

indicate hot money influx is rising again," said Sun Mingchun, chief China economist of

Nomura Securities.

"The inflow will not only put further appreciation pressure on the currency, but also

create more liquidity and fuel inflation of the country's asset prices," he said.

"With a large hot money inflow, China will have no choice but to let the yuan appreciate

or to create more liquidity in order to maintain a stable foreign exchange rate," said

Zhuang Jian, a senior economist with the Asian Development Bank.

Once the yuan appreciated, profit margins of China's exporters, already suffering from

falling orders, would be further squeezed as their products would become more expensive

and less competitive, Zhuang said.

Hot money flows into China through multiple channels, including falsified international

trade with over-invoiced exports and underground private banks.

Zhang said hot money would continue flowing into China this year and in the first half of

2010 as the attractions remained: strong liquidity, soaring asset prices, increasing

anticipation of yuan appreciation and recovery of the US economy.

• FACTBOX: China's investment in ASEAN countries(21st October)


China and the member states of the Association of Southeast Asian Nations (ASEAN)

pledged here Wednesday to enhance economic ties at a forum of the ongoing 6th China-

ASEAN Expo held from Oct. 20 to 24.

The following are facts about China's investment in some of the ASEAN members:

Direct investment from China to ASEAN countries in 2008 totaled 2.18 billion U.S.

dollars, up 125 percent from 2007.

By the end of 2008, Chinese enterprises had invested 2.75 billion U.S. dollars in

Singapore, and almost 300 Chinese enterprises had been established there.

By the end of 2008, China had directly invested 590 million U.S. dollars in Vietnam,

of which 200 million was newly invested in2008.

By the end of June, 2009, contracted investment from Chinese enterprises to Laos had

amounted to 2.14 billion U.S. dollars over the years and went into 303 projects.

Currently, China is the third biggest foreign investor in Laos, and Chinese enterprises

have mainly invested in hydroelectric exploitation, mining and agriculture.

By the end of 2008, China had invested a total of 1.33 billion U.S. dollars in Myanmar

and become the fourth biggest foreign investor of the country.

• Gold producer eyes fresh overseas deals(21st October)

State-controlled China National Gold Group Corporation is planning to step up presence

in Central Asia, Russia and Africa as part of its plan to scout for new investment

destinations.

"We are considering two new precious metals projects in these regions and expect to

finalize the deals early next year," said Tong Junhu, overseas business manager of China

Gold.

The nation's largest gold producer also said it has achieved breakthroughs in Russia and

Mongolia but declined to divulge any details.

Traditionally Chinese mining companies prefer investing in Australia and Canada.

According to figures from Ernst & Young (China) Advisory Ltd, nearly 60 percent of

China's outbound transactions this has been in Australia, while Canada accounted for 32

percent.


Though resource-rich developed economies like Australia and Canada enjoy

sophisticated infrastructure and legal systems, the volatile prices and rising protectionism

have made it difficult for Chinese investors to clinch deals in these regions.

"There is still a valuation gap between buyers and sellers, and good deposits are

impossible to find," said Mike Elliott, global mining & metals sector leader of Ernst &

Young.

"With regard to investment, the acceptable risk level has also changed. The screening

processes has now become more rigorous and most of the projects are being discarded at

the due diligence stage."

In October, Baosteel Group Co, China's largest steelmaker, was asked by the Australian

government to resubmit its application to invest $240 million for a 15-percent stake in

iron ore explorer Aquila Resources Ltd.

In September, the Australian Foreign Investment Review Board (FIRB) asked Yanzhou

Coal Mining Co Ltd to resubmit its takeover application for Felix Resources. In the same

month, China Nonferrous Metal Mining Group was blocked from investing $222 million

in rare earth miner Lynas Corp.

Australian media cited a senior FIRB official as saying that the board preferred not to see

foreign majority stakes in new mining projects.

About half of the 30 mergers in Australia's mining and metals sector failed in 2009.

Elliott said: "Foreign regulatory restrictions on Chinese buyers of assets require greater

flexibility."

He suggested that Chinese companies should shorten the decision-making procedure and

opt for minority stakes instead of looking to control the target company to clinch the

deals in a timely manner.

"If companies do not purchase at a good price in the short term, then they will lose the

opportunity and the door will not remain open forever."

Outbound investment often accompanies higher risks and only full control of the project

will help minimize risks, said a domestic mining executive who declined to be named.

• Allianz, Amex retain ICBC stake(21st October)


Allianz SE and American Express Co plan to keep their Industrial & Commercial Bank

of China Ltd stakes, which have a combined value of about $3.1 billion, past a lockup on

the holdings that expired yesterday.

Allianz and American Express have no immediate plans to sell, the companies and

Beijing-based ICBC said in statements. Allianz has 3.22 billion Hong Kong-traded ICBC

shares, worth HK$19.9 billion ($2.57 billion), while American Express owns 638 million

shares with a value of HK$3.95 billion.

The agreement "is an indication that key shareholders are optimistic about ICBC's

business and growth potential and will lend some support to its shares", said Victor

Wang, an analyst at UBS AG in Hong Kong who rates ICBC a "buy".

ICBC is the world's biggest bank by market value and profit. It has more than 16,000

outlets nationwide, 112 branches overseas, and 190 million individual customers --

equivalent to the combined populations of Japan and France.

The Beijing-based bank's profit may rise 16 percent to a record 128.4 billion yuan

($18.81 billion) this year, according to analysts surveyed by Bloomberg.

ICBC shares advanced 2.4 percent to HK$6.34 yesterday in Hong Kong trading, taking

this year's gain to 55 percent.

Reevaluating holdings

"In case of a potential disposal in the future, Allianz will explore all potential methods of

sale that would maximize value and minimize market impact, with a preference for a

private sale to investors," the companies said.

American Express "will reevaluate its shareholding from time to time depending on

market conditions" and "has no current plans to sell its shares", ICBC and the New York-

based company said in a separate statement.

Allianz would have a profit of $2 billion and American Express a $400-million profit if

they sold their stakes, bought in April 2006, at the current market price.

Goldman Sachs Group Inc, Allianz and American Express purchased a total of 24.2

billion shares in ICBC at that time for about $3.8 billion, six months before the Chinese

bank's initial public offering. They agreed to hold half their shares for three years, and the

remainder for six months more.

Previous sale


Munich-based Allianz, Europe's second-biggest insurer by market value, and American

Express immediately sold half their original investments in ICBC after the first lockup

period ended on April 28. Goldman Sachs extended the period it must hold 80 percent of

its stake to April 2010 under a revised agreement. The New York-based bank sold some

of its ICBC shares in June.

Allianz, which booked a gain of 658 million euros on the sale of the first half of its stake

in ICBC in the second quarter, has provided the bank with expertise in asset and risk

management, while American Express issued co- branded credit cards with the Chinese

lender.

Our partnership with ICBC offers a platform for expansion in our strategic growth market

China and gives us access to a huge number of Chinese customers," said Christoph John,

a Singapore-based spokesman at Allianz.

Chinese banks "offer probably the clearest earnings visibility" for 2010 among the

nation's major industries, JPMorgan Chase & Co analysts led by Samuel Chen wrote in

an Oct 11 report. They forecast 32 percent average earnings growth for Chinese lenders

next year, driven by loan expansion and a recovery in lending profitability.

• Auto industry drives past major milestone(21st October)

China's auto industry yesterday sped past an impressive milestone as the 10-millionth

vehicle - a heavy-duty "Jiefang" truck - rolled off the production line.

The unit, which was produced at FAW Group Corp's factory in Changchun, made China

the third country - after the United States and Japan - to produce 10 million vehicles this

year. Auto output in both the US and Japan has geared down this year because of the

global economic slowdown but, in China, the industry is booming.

Industry officials and executives attending the ceremony marking the milestone predicted

that China will produce more than 12 million units in 2009, up from 9.35 million last

year.

Miao Wei, vice-minister of Industry and Information Technology, said the production of

10 million vehicles means China is becoming a global player in the auto industry.

"To be a strong player, China has to meet three requirements - it must have

internationally competitive automakers and brands that use resources at home and abroad,

it must grab significant market share abroad, and it must grasp core and new technology,"


said Miao, who was previously president of the Dongfeng Motor Corp, one of China's

largest auto makers.

Foreign brands, including Volkswagen, General Motors and Toyota, currently account

for two-thirds of China's passenger car market.

Despite the global financial crisis, China's vehicle market has been growing rapidly this

year, being driven forward by the government's stimulus spending.

Sales in China surged by 34.24 percent year-on-year to 9.66 million units in the first nine

months, according to the China Association of Automobile Manufacturers.

In January, China halved the purchasing tax - to 5 percent - on vehicles with an engine

capacity less than 1.6 liters. The central government also earmarked a total of 5 billion

yuan ($735 million) this year to subsidize rural buyers of minibuses and trucks.

Dong Yang, vice-chairman of the auto association, said the industry is "strongly" hoping

the government will keep the incentives in place next year to continue to promote auto

sales.

• Central govt T-bonds see triple subscription in Hong Kong(21st

October)

The Ministry of Finance (MOF) said Tuesday the 6 billion yuan ($879 million) of

treasury bonds issued in Hong Kong has got a subscription of 18 billion yuan since Sept

28.

The total subscription amount is three times of the 6 billion yuan, a great success for the

treasury bonds issuance, said the MOF on its website.

It is the first time that the central government has issued yuan-denominated treasury

bonds outside the Chinese mainland, which also marks China's further efforts in

internationalizing yuan, or renminbi.

The sales period of the bonds runs from Sept 28 to Oct 20. An annual interest rate of 2.25

percent will be paid for the two-year bonds, 2.7 percent for the three-year ones, and 3.3

percent for the five-year ones.

• China's first 'overseas' bond attracts strong demand(21ST October)

LOS ANGELES (MarketWatch) -- The Chinese Foreign Ministry said late Tuesday that

its first-ever yuan-denominated bond sale outside mainland China was three times

oversubscribed.


The sale in Hong Kong amounted to 6 billion yuan ($880 million) worth of two-, three-

and five-year issues, the ministry said in a statement.

It attracted about 18 billion yuan worth of orders, including close to 150,000 applications

from individual investors, it said.

Bank of Communications senior fixed-income dealer Midas Chu was quoted in a Dow

Jones Newswires report as saying the "very satisfactory" results demonstrate yuan bonds'

popularity in Hong Kong.

"This would encourage [mainland] China to issue more on a regular basis in the future,"

Chu was quoted as saying.

Chu said previous corporate yuan-bond issues were usually two-times subscribed or less,

according to the report, though those sales aren't necessarily comparable to this inaugural

sovereign issue.

The coupons on the issues were 2.25% for the two-year, 2.7% for the three-year and

3.3% for the five-year, the ministry said. Secondary trading levels weren't immediately

available.

• Trade fair sends strong signal of export upturn(21st October)

An important barometer of China's foreign trade, the Canton Fair reported late Tuesday a strong rebound in foreign purchase and buyers compared with the last session in April, an encouraging sign of the country's export amid the continuing global recession. The first phase of the biannual 106th China Import and Export Fair from October 15 to 19 saw an export volume of about 15.6 billion U.S. dollars. That's up by 19.6 percent over the last session, said Chen Chaoren, spokesman of the fair in the southern Guangzhou City. More than 90,000 buyers participated in the fair, an increase of 11.4 percent against the last session. Those from the United States and Europe grew by 18 percent and 38 percent despite the shrinking markets in the two regions, Chen said. Orders in home appliances, electronics, hardware, tools, transporting vehicles and building materials, which took up at least 60 percent in China's export every year, reported an increase of 20 percent. The numbers indicate that some international buyers are not holding their purses as tight as before, and China's export industry is showing signs of an upturn after suffering the negative impact of the financial crisis for a year, Chen said.


Du Yuanyuan, board chairman of the Leiyang Electronics Technology Co., Ltd , said the company mainly producing liquid crystal TV received large long-term orders at the fair. "The situation is expected to be better next year." While some booths were vacant in April, the autumn fair's 50,000 booths fell short of more than 80,000 applicants. Buyers carrying suitcases crowded exhibition halls. They wanted to collect as many company brochures as possible for information before setting deals. Wang Zhiping, vice director of the fair, said there was an "obvious" increase of orders that were each worth more than 10 million U.S. dollars. "Some companies even set deals worth 70 million dollars at the fair. This is a sharp contrast with the small and short-term orders in April," he said. Yao Wenping, vice president of the China Chamber of Commerce for Import and Export of Machinery and Electronic Products, said she is confident of the international market for Chinese products, although the demands have tumbled due to lowering buying capabilities and remaining stocks in the western markets. "The demands, including those from the U.S. and Europe, are expected to increase largely next year," she said. "I am glad to see that many companies have found the root of their problems and tried to improve," she said. "Instead of competing with low prices, lots of companies are adopting a strategy of creating new products and own brands to defend against the financial maelstrom," she said. Tao Jianxing, board chairman of the Chunlan (Group) Company, a major producer of home appliances, said the company has been making efforts to attract buyers with innovation instead of a low price. "The large orders we have received at the fair show our strategy is a success," Tao said. Despite the signs of recovery, Chinese exporters and officials remain cautious. They said they do not expect the global trade to reach the level in 2007 in the near future as the trend of the world economy is still uncertain. Zhu Baorong, an official in charge of export in east China's Jiangsu Province, said the sharp rise of trade volumes was based on the drop in the recent year and the sustainability of the growth is still unsure.


The export recovery still depends on the government's stimulus measures, and the tentative rebound will be affected if the favorable policies are due, said Xiao Yaofei, professor with the Guangdong University of Foreign Studies. China's export industry is also under huge pressure of protectionism. The Weihai-based Triangle Tyre Co. Ltd is one of the victims of an up-to-35-percent tariff levied on the made-in-China tyres by the U.S. government. Its exports to the United States were slashed by two thirds to 100,000 units a month after the punitive tax was added. Yi Xiaozhun, deputy minister of the Ministry of Commerce warned exporters to be alert of the tough conditions and urged them to prepare for the difficulties. But he also assured exporters that the government's stimulus policies will remain "consistent" in the days ahead as they are "very important" to a solid recovery.

• Minsheng sees Jan-Sept net profit up 18%(21st October)

China Minsheng Banking Corp, the nation's first listed non-State-owned lender, announced Tuesday that it posted a net profit of 10.2 billion yuan ($1.49 billion) in the first three quarters, up 18.11 percent year-on-year. The net profit in the third quarter alone stood at 2.83 billion yuan, up 8.9 percent from a year earlier, the lender said in a statement to the Shanghai Stock Exchange, the first third-quarter report from banks listed in China's A-share market. The lender attributed the net profit rise to the increasing income from net interest margin. The non-performing loan rate of the bank dropped to 0.82 percent at the end of September from 0.86 percent at the end of June, according to the Beijing-based lender. Equities of the Shanghai-listed bank rose 2.42 percent to 7.63 yuan per share on Tuesday.

• China to scrutinize state-owned firms' hedging deals(21st October)

China's state-owned firms looking to hedge their losses from rising crude oil prices will be supervised more stringently, China Daily reported Wednesday. The State-owned Assets Supervision and Administration Commission (SASAC) has required companies under its control to scrutinize hedging deals more closely while signing financial derivatives contracts. The move follows rising book losses from hedging contracts suffered by such state-owned firms as China Eastern Airlines and Air China, who have only recently begun to narrow down such losses-on-paper from former hedging deals. SASAC tightened the rules during a recent budget meeting convened by state-owned enterprises. The futures trading volume should not exceed 90 percent of the spot volume. The percentage for those who are inexperienced in such trades or those who have reported significant losses previously will be no higher than 50, the newspaper said, citing Shen Ying, director-general of the SASAC Statistics Evaluation Bureau.


SASAC also clarified that it would defend the legal interests of hedging firms through negotiations with investment institutions in case there are misleading clauses in previously signed deals.

• New-type explosive detectors used for Shanghai World Expo(22nd October)

New-type explosives detectors have begun to serve at some major stations of the urban rail transport system in Shanghai to help ensure security for the World Expo scheduled for May 1 next year, developers said on Thursday. The detectors, dubbed SIM 07 and SIM 08, have passed tests by the Ministry of Public Security. The new products were produced on the basis of the fluorescent polymer sensing technology that was jointly developed by the Shanghai Institute of Microsystem and Information Technology under the Chinese Academy of Sciences and Shanghai Sanco Instrument Co.,Ltd. The new detectors are more sensitive than experienced police dogs, and would do no harm to operators and those being investigated and produce no pollutants, according to the developers. SOCIAL FRONT

• President, premier stress energy resource tech education(18th October)

President Hu Jintao congratulates Sunday on the 100th founding anniversary of the China University of Mining and Technology (CUMT) in a letter, urging more talents in the country's energy resource industries. Hu said in the letter that energy resources are the basis and guarantee of the country's economic and social development. As a key base for the country's education on the science and technology of energy resources, the university shoulders great responsibilities and has a bright future, Hu said. Hu called upon the university to stick to the Scientific Outlook on Development and foster more talents to achieve more research fruits and contribute to the sound and fast development of the country. In his reply to a letter from the university's new graduates who are working in the country's western regions, Premier Wen Jiabao encouraged them to devote themselves to the development of the regions where they work. State Councilor Liu Yandong Sunday attended the celebration that marked the university's founding anniversary. She noted that the scientific exploitation and clean use of energy resources is a major issue for countries across the world and is also a key factor that is restricting China's modernization. She called on teachers and students to attach individual values to the country's construction and go to the places where they are most needed. The CUMT, one of the key national universities under the direct administration of the Ministry of Education, is based in Xuzhou of east China's Jiangsu Province.


In 1997, the university's second campus was established in Beijing.

• 'Experience China in Israel' cultural event kicks off (18th October)

Experience China in Israel" cultural event formally kicked off Saturday evening in Tel

Aviv Opera House, in the presence of Israeli President Shimon Peres and a senior

Chinese official. The event, jointly held by the State Council Information Office of China

and Israeli Foreign Ministry, is dedicated to the 60th anniversary of the founding of the

People's Republic of China and the 17th anniversary of the establishment of diplomatic

relations between the two countries.

Composed of a series of activities including performances, photo exhibitions, a film week

and a symposium on China, Israel and the world economy, the event, which began earlier

this week and will conclude at the end of this month, is expected to allow the Israelis to

see Chinese culture and China's development and achievements over the past 60 years

and promote Sino-Israeli friendship.

Following the opening ceremony, the performance "My Dream" was staged by China

Disabled Peoples' Art Troupe, which was well received by Israelis.

At the opening ceremony, Peres said in his speech that "your dream is our dream," and

that he had watched the performance on TV, which has unbelievable beauty.

The president continued that China is a large country, and Israel is a small one, but in

terms of dream, "we are of the same size."

Shortly after Peres' speech, Wang Chen, Minister of the State Council Information Office

of China, told the audience that since China and Israel established diplomatic relations in

1992, which turned over a new leaf in the bilateral ties, Sino-Israeli relations have been

developing fast and sound, including in the field of culture.


"It is reported that more and more Israelis begin to admire the Chinese culture, start to

learn Chinese, and want to learn more about the Chinese development," said the senior

Chinese official.

"Therefore, this great event 'Experience China in Israel' not only reflects the two

governments' concerted efforts in promoting China-Israel relations, but also reflects the

two peoples' earnest aspiration to increase understanding and deepen friendship," he

noted.

The event will open a new window for Israelis to get a closer look at China and perceive

China from different angles and perspectives, he said.

Wang expressed his hope that the event will present an old and new, a traditional and

open China more vividly to Israelis.

"It is also our hope that the Israeli people will feel the profound friendship among the

Chinese people for the Israeli people, and the Chinese people's sincere wishes to build a

harmonious world with lasting peace and common prosperity together with peoples all

over the world." he said.

Since 1999, China has held the event of "Experience China" in many countries including

Germany, the US, Russia and South Korea to promote cultural exchanges. These events

have been well received by overseas governments, news media and the general public.

• Surge in returning Chinese experts(19th October)

China's booming economy, favorable policies and excellent research environments are

resulting in a surge in talent returning from the West, helping the nation to compete in

global innovation, a top education specialist said yesterday.

"They are being attracted by the policies aimed at enticing skilled overseas Chinese to

return home to develop their careers and build an innovative country," said Lu Yucheng,

chairman of the China Overseas-Educated Scholars Development Foundation.


He was speaking at the launch of the Western-Return Scholar Entrepreneur "Teng Fei"

Award, which he added aims to "encourage returned elites to share successful

experiences with more overseas Chinese".

The foundation has allocated more than 1 million yuan ($140,000) to the prize fund,

which will be shared between 10 elite entrepreneurs and 50 corporations on Dec 18.

Around 1.4 million Chinese have studied abroad since China's opening-up policy in

1978, with 390,000 already returned, said Lu.

• Relic hunters descend on US, European museums (19th October)

China will send an expert team to trace and document relics taken from the Old Summer

Palace that are now in foreign countries, a park official said Sunday.

The team of experts will visit museums, libraries and private collectors next year in the

United States, the United Kingdom, France, Japan and other countries for photos,

documents and archives of relics plundered from the Old Summer Palace, according to

Chen Mingjie, director of the park's management office.

"We hope to build a complete database of the Old Summer Palace's lost relics so we can

have a clearer view of the historical royal garden, then known as the 'Garden of Gardens'

before it was looted and burned down in 1860 by invading British and French armies,"

said Chen.

"We don't really know how many relics have been plundered since the catalogue of

treasures stored in the garden was burned during the catastrophe. But based on our rough

calculations, about 1.5 million relics are housed in more than 2,000 museums in 47

countries."

Some of them are being showcased in the British Museum and the Fontainebleau Art

Museum in France, Chen added.


The expert team has contacted several museums and libraries so far without encountering

resistance, according to Chen.

"We have clarified that this is an attempt to document rather than to seek a return of those

relics," said Chen, "even though we do hope some previously unknown relics might

surface and some might be returned to our country during our tracing effort."

A camera crew from China Central Television will follow and document the team's effort

to keep the domestic audience posted about their progress, but possibilities exist that

video or photography might not be allowed.

"We will get as much as we can," said Chen.

Like other ancient civilizations, China saw many cultural relics taken overseas when the

country was subjected to wars and occupation.

According to the Chinese Cultural Relics Association, more than 10 million Chinese

cultural relics were taken from the country between 1840 and 1949, a large number of

which are now stored at major public museums in Europe and the US.

China has been actively seeking the return of overseas relics during the past decade

through purchases at international auctions, donations by private collectors or overseas

Chinese and increasingly through diplomatic means based on international conventions.

Last February, two looted fountainheads from the Old Summer Palace were sold at

auction giant Christie's for 14 million euros ($17.9 million), which roused opposition

from the Chinese and international communities.

• China, EU focus on social security schemes (19th October)

Establishing a multi-tier pension system may be better at reducing investment risks of

pensioners, especially during a financial crisis, experts at the two-day European Union-

China high-level roundtable on social security concluded on Friday. The roundtable,


organized by the EU-China Social Security Project, is one of the flagship cooperation

projects between the two sides.

At the fourth roundtable talks in Stockholm last week, officials and experts discussed

how to manage social security in periods of economic uncertainty, especially the impact

of the global economic downturn on the labor markets and on individual pension

accounts.

"Social polices should be seen as a productive factor, not as a luxury we can afford only

during the good years," said Xavier Prats Monne, Director for Employment, Lisbon

Strategy and International Affairs, European Commission.

"The current financial crisis has seriously hit the global social society system and the

total loss of various pension funds is about $ 5.5 trillion," Hu Xiaoyi, vice minister of the

Ministry of Human Resources and Social Security (MHRSS) said at the meeting.China

started to establish a social security system in 1996. It is expected to cover all Urban and

rural residents by 2020.

• PRC 60th anniversary film becomes best seller(19TH October) The star-studded film, "The Founding of a Republic," has become the box office champion of China's domestically-made films after taking 406 million yuan ($58.4 million) since its premiere on September 16. "It has far exceeded our expectations," Weng Li, spokesman with the state-owned China Film Group Corporation (CFGC), said Monday. "We initially expected the box office to hit 200 million," he said. The movie recounts Chinese history from 1945 to 1949. About 200 established Chinese actors and directors, including Jet Li and Chen Kaige, participated in the film. It was made to commemorate the 60th anniversary of the founding of the People's Republic of China (PRC), said director Han Sanping, also the chairman of the CFGC. "We are planning to bring the prints of the film to poor and mountainous areas to accommodate people there," Weng said. "And they will enjoy it free of charge." The previous champion in the Chinese film box office is "If You are the One" directed by Feng Xiaogang, released on December 18, 2008, which took in about 340 million yuan as of January 24. Weng attributed the success of the epic film to the blend of mainstream political values and marketing. "The gathering of stars played the historical roles vividly," he said.


Prof Yin Hong, of the School of Journalism and Communication of Tsinghua University, said the film could be considered an example of a politically-themed movies attempting to reach a wider audience through marketing. "More stars mean more attention, which will attract the public, " he said.

• Second wave of H1N1 infections hits China(20TH October) China is experiencing a second round of H1N1 flu infection. Recent infections are more widespread and are increasing rapidly, said Zeng Guang, chief epidemiologist at the Chinese Center for Disease Control and Prevention. China has reported two deaths from H1N1 influenza - an 18-year-old woman in Tibet who died on Oct 4 and a 43-year-old woman who died last Friday in Xining, capital of Northwest China's Qinghai province. Zeng said as seasons change, H1N1 infections slow in the southern hemisphere, while they rocket in the northern hemisphere. The number of H1N1 cases reported daily now equals the number of cases reported during 10 days of last month, he said. The Chinese mainland had reported more than 26,300 cases of H1N1 influenza as of last Friday. About 86 percent have already recovered. More than 17,000 of the cases were reported in September alone. H1N1 infections are spreading to small and medium-sized cities, as well as central and west China, Zeng said. He said the fight against H1N1 should shift from preventing imported H1N1 cases to strengthening the response capabilities of small cities in less-developed regions. Zeng is concerned that if there are too many critical cases in one region, hospitals will not be able to provide sufficient care. An epidemiological study directed by Zeng shows airborne particles of saliva are the prime suspect for H1N1 infection, while no evidence exists to show the air itself can spread the virus. He said people do not need to wear thick masks or sterilize the air. They should wash their hands and change clothes frequently, cover their mouth and nose when sneezing, and avoid close face-to-face conversations (the safe distance is two meters between two people). So far, more than 300,000 people have been vaccinated against H1N1, with 150 showing adverse reactions, including local swelling and pain, fever, vomiting and fatigue. The Beijing Health Bureau said free vaccination of all the primary and middle school students will begin today. "Most of the reported adverse drug reactions were mild," said Health Ministry spokesman Deng Haihua. "Generally speaking, our inoculations have been successful." As of Friday, 17.6 million doses of the vaccine had been approved for release, the State Food and Drug Administration said. The administration has issued vaccine production licenses to eight domestic firms.

• A Copyright Complaint From China(21st october) Chinese writers are planning group action aginst Google for digitizing their books without paying them. A Chinese writers' society accused Google of infringing on the copyrights of at least 570 Chinese authors by scanning and uploading their books into Google's digital library without seeking consent. The society is soliciting all Chinese


writers to voice their opposition before a U.S. court finalizes a settlement at a hearing scheduled for Nov 9. In a notice posted on chinawriter.com.cn, China Written Works Copyright Society (CWWCS), advised Chinese writers to search for their own writings on the Google eBooks web site and to be prepared to take further action to protect their legal rights. Infuriated by Google's apparent copyright infringement, the copy right society pledged it would fight on behalf of individual authors in potential legal action. Zhang Hongbo, deputy director-general of the China Written Works Copyright Society, said the National Copyright Administration and other Chinese authorities should push the U.S. government to handle the issue properly, China Daily reported Wednesday. According to the figures from China Written Works Copyright Society, nearly 18,000 books from 570 Chinese writers have been scanned and included in Google's eBooks archive. So far, Google has not informed or paid most of these Chinese writers, China Daily added. This was the first time Chinese writers joined western authors in a movement against Google's abuse of their copy rights. German Chancellor Angela Merkel said earlier this month that copyrights have to be protected both in the real world and on the Internet. Before the opening of Frankfurt Book Fair, Merkel appealed for more international cooperation on copyright protection and said her government opposed Google's plan to scan libraries full of books.

• Chinglish to get the axe in Shanghai for World Expo (23rd october)

Shanghai is looking to get rid of poorly translated English signs as it readies to welcome 4 million foreign visitors to next year's World Expo. Shanghai Media Group's International Channel Shanghai (ICS) earlier this week launched a campaign called "Write It Right" to help correct improperly translated English signs in the city's public areas. High school student volunteers would take pictures of wrongly translated English signs and billboards in the Expo Park, as well as in the city's downtown areas, ICS told Xinhua. Experts will then discuss such mistakes and make recommendations. Earlier this month, the municipal government released a new series of guidelines and more than 300 English translations based on international standards. In the coming months, these will replace existing public signs that are inadvertently humorous or insensitive. The correction moves follow a similar action taken by Beijing prior to its hosting of the Olympic Games last year. The efforts were good, especially coming from a place in China like Shanghai, which is interacting with the rest of the world, Musebu Sichula from Zambia, a 33-year-old doctorate student who studies at the University of Shanghai Finance and Economics, was quoted as saying by Friday's China Daily. She remembers coming across a large rock in Shanghai with a sign below it that read "Caution, overhead hazard". She could not help but let out a laugh over what should have been translated as "Watch your head". Mardapittas, the creative director of a Shanghai-based media marketing firm, characterized the city's attempt to correct improper English signs as a natural progression in is modernization.


"The way the city is choosing to change reflects the behavior of Chinese people," he said. "With more and more Chinese making the effort to learn English and shaping themselves toward a more international way of life, so is the city." ETHNIC FRONT

• China "dissatisfied" with Uygur separatist's Japan visit(20th October)

China on Tuesday expressed "strong dissatisfaction" with Japan for its allowing a visit by Uygur separatist Rebiya Kadeer.

"Some forces in Japan have planned for and facilitated Kadeer go to Japan to engage in separatist activities against China," Foreign Ministry spokesman Ma Zhaoxu said at a press briefing.

"Despite China's resolute opposition, Japan still allows Rebiya in. China expresses strong dissatisfaction," Ma said.

Ma reiterated that the Chinese government stands firmly against national separatism and is firm in safeguarding China's national unity. "Any attempt to separate China will be doomed to fail."

Rebiya Kadeer is leader of the World Uygur Congress, which was widely blamed for the deadly riot killing nearly 200 people in Urumqi, capital of northwest China's Xinjiang Uygur Autonomous Region, on July 5. ENVIRONMENTAL FRONT

• Experts map out low carbon city strategy(20th October)

China's urban planning experts Monday called for a substantial implementation of low carbon concept in city development strategy to avoid environmental crisis amid rapid urbanization. It will be hard for the country to achieve its goal of sustainable development if measures were not taken to improve energy efficiency and to cut carbon emission, the experts warned, citing the fact that a 75 percent of urbanization by 2050 means much more energy consumption and carbon dioxide emission. They sounded the alarm in a report, China's Low Carbon Eco-city Development Strategy, which was launched in Beijing Monday based on a research by the Chinese Society for Urban Studies (CSUS). The report predicted that even in the best "low-carbon development" scenario, the rise of the emission of carbon dioxide, a major greenhouse gas (GHG), would likely be halted only by 2035. Cities will be the dominant energy consumer and GHG emitter. By 2050, between 70 percent and 75 percent of the Chinese will live in cities, while the urban economy contributes 90 percent of the national economy, according to the report. Li Xun, CSUS's senior urban planner, said the fast urbanization put great strain on China's sustainable development.


"Even though China adopts the strict emission standard, the situation is still not optimistic," Li said. The "low-carbon development" scenario requires China, now the world's third largest economy, to raise the use of renewable energy from about 9 percent of total energy use at present to 30 percent in the next 20 years. The efficiency of energy use in power plants must be improved by 20 percent in the same period and "strict" energy-saving policies must be adopted. The report cited undated United Nations figures as saying that urban residents currently accounted for only half of the world's population, but cities emit 75 percent of the world's total CO2. Yang Fuqiang, director of Global Climate Solutions, a program sponsored by World Wide Fund for Nature (WWF), said the low carbone co-city development strategy is a must-do option for China, a country facing multiple challenges of city sprawling, energy strain and fast economic growth. "Lacks of clear goal and evaluation criteria also hinder the building of low carbon eco-cities," Yang said. The report listed the vision of policy makers, technology support and fiscal stimulation as major solutions. It will be eventually provided to lawmakers and government officials in some 600 Chinese cities. According to the report, city planners should set clear vision on urban functions in light with the city's capacity for environmental sustainability. Integrated public transport systems, green building technology and clean production technology are among options to promote low-carbon cities. Besides calling for developing and applying energy-efficiency technology, it also suggests greater fiscal stimulation to local governments in the development of clean energy programs. "The goal is a tough task to achieve, but it gives constructive suggestions," Li said. "China's urbanization will have a defining impact on this century's human development," Li said. "It is inevitable to embrace low-carbon concept if we want the urbanization more sustainable."

Regional report North Politics Social front Economic front

• World's top urban planners envision new Beijing CBD (19th October)

Ten years after Beijing's famed Central Business District (CBD) was founded, the 4-sq-km cluster of modern highrises and international office buildings is set for an expansion eastward that will almost double its size after the Beijing municipal government approved the move in May.


The public got its first view of possible plans for the new area at the opening ceremony of the 10th Beijing CBD International Business Festival on October 12, when seven urban planning and design firms unveiled their visions. The municipal blueprint calls for the boundaries of the CBD be extended to the East Fourth Ring Road, an expansion of about 3 sq km. The existing business zone is bordered by Jianguomenwai Street on the south, Chaoyang Road on the north, Dongdaqiao Road in the east and West Dawang Road in the west. Developed for industries such as finance and media, the expanded area is intended to further consolidate Beijing CBD's position as a leading international business hub in China. Firms and partnerships whose plans made it to the finals of the selection process included Skidmore, Owings and Merrill LLP (SOM) from the US, Foster & Partners from Britain, a joint team comprised of US-based Kohn Pedersen Fox Associates (KPF), Beijing Institute of Architectural Design and Zhonghong Design, ADP-i from France, as well as a joint team of China Academy of Urban Planning and Design and Space Syntax from Britain, the Tsinghua Urban Planning and Design Institute and Guangzhou City Planning and Design Institute. A panel of experts from home and abroad announced their decision on October 16, when SOM took first place honors, followed by the team of KPF, Beijing Institute of Architectural Design and Zhonghong Design. Third-place went to the team of China Academy of Urban Planning & Design and Space Syntax Ltd. "The competition marks the start of Beijing CBD's eastward expansion," said Cheng Lianyuan, head of the Chaoyang district where the CBD is located. "We will make a final blueprint based on proposals from the seven participants while considering suggestions from other experts and the concerns of the public," he added. Experts said they were "very impressed with the wisdom and innovative ideas in the proposals" Northwest Politics Social front Economic front

• Xinjiang imports coal from Mongolia (21st October) Northwest China's Xinjiang Uygur Autonomous Region has for the first time imported about 260 tonnes of coal from Mongolia, according to local frontier station authority Wednesday. Xinjiang is expected to annually import more than 2 million tonnes of resources, mainly coal, from Mongolia through the Takixken port, which will help promote the border trade and the region's economic development, local officials said. In 2008, the import and export volume through the port, which is located in northeastern Xinjiang's Altay area, reached 250 million yuan (36.6 million U.S. dollars). The 260 tonnes of coal arrived in Xinjiang Monday


Northeast Politics Social front Economic front Southwest Politics Social front

• China courts sentence six to death over organized crimes(21st October) Six people convicted in connection with organized crime gangs were sentenced Tuesday to death at two courts in southwest China's Chongqing Municipality. The No. 1 Intermediate People's Court handed down death sentences to Yang Tianqing and Liu Chenghu, who were convicted of organizing a nine-member criminal gang and murder, a court statement said. Yang, the 35-year-old gang leader, was also fined 500,000 yuan, it said. Two other members of the gang, Jian Shaokun and Zeng Chuan, were sentenced to death with a two-year reprieve, the document said. The other five members received jail terms from 11 years to life. The court statement said the gang's crimes spanned the past eight years and involved killings of four people and intentionally injuring at least six. They were also convicted of illegally possessing guns or ammunition, false imprisonment, robbery and extortion and forging resident identity cards, it said. Meanwhile, Chongqing's No. 3 Intermediate People's Court handed down death penalty to Liu Zhongyong on charges of organizing criminal gangs and murder. Liu was also accused of running illegal coal mines in the suburbs of Chongqing and was held responsible for two cave-ins in 2006 and 2008 that together killed three workers. His 22-member gang was responsible for the killing of one person and the injuring of at least four others in Chongqing last year, a court statement said. Liu's right-hand man Zheng Xin received death penalty with a two-year reprieve. The other 20 members were jailed for one to 17 years. Courts in Chongqing began hearing the cases last week. Another 23 suspects were on trial on similar charges Monday and Tuesday at the Chongqing No. 2 Intermediate People's Court. The court will hand down sentences on a separate occasion.


Twin brothers Zhang Bo and Zhang Tao, aged 23, were accused of running the 24-member gang that ran an illegal casino in Wanzhou District, injured six people over the past two years and illegally detained a man for more than 24 hours. Gang member Deng Dexiang, the casino manager, is still at large Economic front South central Politics Social front

• China jails 8 for protests over mystery death(18th October) A local court Saturday sentenced eight people to jail terms ranging from five years to two years and a half for disrupting public order in Shishou City, central China's Hubei Province, in June after the death of a chef. Ten people stood on trial at the People's Court in Shishou Saturday. The court announced leniency to two of the accused by exempting them from criminal punishment. The eight sentenced people included cousin and brothers of 24-year-old Tu Yuangao, a chef whose body was found lying at the gate of the Yonglong Hotel in Shishou in the evening of June 17. An autopsy and X-rays and tests for poisons carried out by experts from the Ministry of Public Security and Tongji Medical Institute showed Tu committed suicide. The court found that Tu's cousin Tu Xiaoyu and brothers seeked compensation from the hotel, and stirred up the unrest by blocking traffic, which left 62 security guards and policemen injured, and 16 police vehicles damaged. Tu Xiaoyu was held as principal in the unrest. She was sentenced to five years in prison.

• China's biggest ever lottery win shrouded by mystery, suspicion(20th October) First came shock and envy. Then speculation on the identity of China's biggest-ever lottery prize winner. And finally came suspicion over the credibility of the country's lottery industry. Public sentiment had made a dramatic turn two weeks after lottery officials announced on October 8 that the winning ticket worth almost 360 million yuan ($52.7 million) was bought in Anyang City, central China's Henan Province. The unidentified buyer has yet to come forward to claim the gigantic "Dual-colored Ball" jackpot of the China Welfare Lottery. Calls from the public and the media have poured into the Henan provincial Welfare Lottery center, asking for the identity of the winner. When lottery officials released the address of the outlet that sold the winning ticket in Anyang's Yindu District, reporters from across the country swarmed into the small store, trying to dig up details of the winner. "I vaguely remembered that a man in his 30s or 40s bought that ticket," recalled the vendor, Chen Guixia. "He spoke with a local accent. "The player is not a regular customer in my shop. I can't remember exactly how he looked and dressed," she said.


Before selling the record jackpot winning ticket, Chen had sold second prizes in the Welfare Lottery twice since opening for business in 2001. Rumors circulating among the media and local community pointed to different versions on the winner's identity, including a truck driver, a security guard, a steel products store owner and a pool of four people. According to the provincial Welfare Lottery center, the buyer chose two lines of the same seven numbers, printed on a single ticket with a 44-draw spread, at a cost of 176 yuan ($25.8) at 2:55 p.m. on October 8. The ticket's total number of top prize stakes came to 88. The Dual-colored Ball lottery consists of six red ball numbers from 1 to 33 plus one blue ball number from 1 to 16. A maximum of five bets can be printed on one ticket and players can spread the bet over multiple draws using the same set of numbers. The jackpot numbers drawn that evening were 05, 12, 16, 25, 26, 27 and 31. The winner must pay 20 percent of the win in a personal windfall income tax, or about 72 million yuan ($10.5 million). The previous single-ticket lottery record was held by a player in Jiayuguan, in northwest China's Gansu Province, who won 113.8 million yuan ($16.7 million) in the Dual-colored Ball in November 2007 by spreading a set of numbers over 20 draws. Members of the public used the popular website, Baidu.com, to allege the record win could be the result of manipulation of the draw. They cited a post dated September 21 on the website showing how to win a lottery jackpot of 300 million yuan by playing in an identical way. The IP address of the anonymous person who lodged the post was also from Henan Province, a coincidence that fueled suspicions of fraud. Another post by an unidentified "insider of China's lottery industry" alleged on the Tianya BBS website on October 12 that the "Dual-colored Ball" lottery was used by lottery issuing institutions to "cheat money out of lottery players" as the video of the draw was pre-recorded. The "insider" said the lottery issuing agencies could use the two-hour time gap between last-minute sales and the draw to manipulate the results. The Welfare Lottery's Dual-colored Ball is drawn three times a week: on Sunday, Tuesday and Thursday. The insider said the lottery issuing agency used a super computer to analyze sales data and the draw team pre-taped several versions of each high-jackpot draw. Higher officials of the lottery issuing agencies then allegedly decided which set to broadcast. Lottery officials, however, have not commented on the allegation. Lottery frauds and scandals have been reported in different cities in China over the past five years. A software-design engineer surnamed Cheng broke into a database of the Welfare Lottery center in Shenzhen, Guangdong Province, on June 9 this year in an attempt to win 33 million yuan ($4.83 million) on the "Dual-colored Ball" lottery. Employed by a high-tech company contracted with the lottery management center to work on a system upgrade, Cheng hacked into the system and falsified entries for five winning tickets. Those tickets were among nine that won the top prize in the "Dual-colored Ball" lottery on June 9. Each ticket was worth roughly 6.6 million yuan ($1 million).


The management center detected the fraud shortly after it was announced there were nine winning tickets. After an investigation, they concluded the computerized sales system had been hacked and data changed. They contacted police at 2 a.m. on June 10. Police assigned specialist on-line crime investigators, who staked out the prize collection center and arrested Cheng on June 12.

• Chinese city holds trade fair in Vietnam(20th October) A trade fair to showcase products made in the Zhongshan city of South China's Guangdong province was held in Hanoi, capital of Vietnam, on Monday. The fair aims to promote trade links between Zhongshan, a booming city known for manufacturing, and Vietnam, said Li Qihong, mayor of Zhongshan city at the opening ceremony on Monday. More than 100 Zhongshan companies selling home appliances, electronics, toys, food, chemical products and machinery participated in the trade fair, said Li. Le Danh Vinh, deputy industry and trade minister of Vietnam, said the fair is expected to provide a good opportunity for Zhongshan and Vietnamese businessmen to meet and discuss cooperation. Bilateral trade between China and Vietnam has seen fast growth in recent years with intensified trade promotion activities at different levels, said Vinh. The fair, running till Wednesday, is expected to see the signing of more than 200 contracts with the value of $1.8 billion, according to the organizer.

• Stunt keeps 91-year-old man young(20th October) The 91-year-old Xiao Qinglian performs his stunt show of handstand with both legs over shoulder while picking up a coin with mouth by lowering his head to the ground, in a park of Wuhan, central China's Hubei Province, Oct. 19, 2009. The nonagenarian man has kept on the extraordinary physical exercises over the past 27 years to keep body fit. Economic front

Environmental front East Politics

• President Hu makes inspection tour in Shandong Province(19th October) Chinese President Hu Jintao (C), who is also general secretary of the Central Committee of the Communist Party of China and chairman of the Central Military Commission, talks with staff members of Shandong Dongyue Chemical Co. Ltd (SDC) in east China's Shandong Province, Oct. 17, 2009. Hu Jintao made an inspection tour in Shandong Province from Oct. 16 to 19. Social front Economic front


• Chinese president stresses development of renewable energy(19th

October)

Chinese President Hu Jintao has urged the country's companies to reduce operation costs

by speeding up the development of renewable energy and help improve the country's

energy structure. "Developing renewable energy vigorously is necessary for taking up

the front line in the new round of global energy revolution," said Hu while visiting a wind

energy project besides the Bohai Sea during his inspection tour in Shandong Province

from Oct. 16 to 19.

The project, when finished, will produce more than 95 million kw of electricity every

year and will play an important part in improving the local energy structure.

After attending the opening ceremony of the 11th Chinese National Games in Jinan,

capital city of Shandong, Hu inspected the province on local economic development and

Communist Party building.

Hu called upon companies to focus on technical innovation and scientific management

to improve their sustainable development.

While visiting the country's large oil base Shengli Oilfield, Hu climbed onto a well

drilling platform to meet with the workers. He praised the workers for their hard work

and outstanding professional skills.

During an inspection in a paper making company, Hu asked about the methods for

emission reduction and encouraged the company to continue to improve recycling

economy and put more efforts in environmental protection.

Hu also visited a village called Liujihou in the city of Dongying. The village set up its

Communist Party branch in 1925 --one of the four oldest Party branches in the province.

Hu urged Party members in the village to seek benefits for villagers, solve their

problems and encourage them to develop modern agriculture in a scientific way.

• China's Minsheng net profit up 18% in first 9 months (20th

October)


China Minsheng Banking Corp., the nation's first listed non-State lender, announced Tuesday that it posted a net profit of 10.2 billion yuan (1.49 billion U.S. dollars) in the first three quarters, up 18.11 percent year on year. The net profit in the third quarter alone stood at 2.83 billion yuan, up 8.9 percent from a year earlier, the lender said in a statement to the Shanghai Stock Exchange, the first third-quarter report from banks listed in China's A-share market. The lender attributed the net profit rise to the increasing income from net interest margin. The non-performing loan rate of the bank dropped to 0.82 percent at the end of September from 0.86 percent at the end of June, according to the Beijing-based lender. Equities of the Shanghai-listed bank added 2.42 percent to 7.63yuan per share on Tuesday. HONGKONG AND MACAU Politics Social front

• 1,000-m-long painting kicks off HK wetland events(18th October) More than 2,000 people created a 1,000-meter-long painting with the theme of birds and wetlands in Hong Kong on Saturday, in a bid to set a Guinness world record and kick off an event series for World Wetlands Day 2010. Hong Kong's World Wetlands Day events for 2010 would be in the form of a bird-watching festival that runs from October to February next year, said sources with the Hong Kong Wetland Park, which co-organized the events with local authorities and organizations. From October 2009 to February 2010, a series of events would be rolled out to raise public awareness of wetland ecology and the effects of climate change on the bio-diversity of wetlands, according to the Park sources. Highlights of the events series would include bird-watching guided tours, thematic exhibitions, the premiere of a short film on the black-faced spoonbill, the launch of a guide to birds of Hong Kong, public lectures, among others. The World Wetlands Day has been celebrated internationally each year on February 2 since 1997 to commemorate the signing of the Convention on Wetlands of International Importance in Ramsar, Iran, on February 2, 1971. The international theme for World Wetlands Day 2010 is "Wetlands, Bio-diversity and Climate Change." Many migratory birds fly to Hong Kong from mid-October to the following February. The Hong Kong Wetland Park, located in northern Hong Kong, has recorded over 230 bird species, accounting for about 50 percent of those found in Hong Kong.

• Macao kicks off music festival with gala concert


The 23rd Macao International Music Festival (MIMF) started here on Friday night, as the Macao Orchestra staged the month-long event's first performance. This year's festival embraces opera, symphonic, choral and chamber music, as well as contemporary, folk, pop, fusion and jazz music, which will be presented by artists from the United Kingdom, Germany, Austria, Italy, Portugal, the United States, Chinese mainland, Macao, etc. Being the festival's opening program, the Butterfly Lovers Violin Concerto was presented by the Macao Orchestra, which was joined by Chinese violinist Yu Lina, at the Macao Cultural Centre Grand Auditorium Friday night. The concerto, drawing on themes from the ancient Chinese tragic romance "The Butterfly Lovers," remains until now China's most representative national symphonic work, enjoying a great reputation both at home and aboard. Violinist Yu Lina, who was the premiere performer of this symphonic work, was invited to play it in Macao 50 years after the concerto was firstly performed in China. Following Friday night's program, the Academy of Ancient Music (AAM), an orchestra of world-class excellence from the United Kingdom, will stage their performance Saturday with their instruments that were constructed or in use during the very historical period when the music itself was composed. Organized by Macao's Cultural Affairs Bureau, the festival will last from October 9 to November 8, which will be accompanied by workshops and conferences with the aim of stimulating public interest in the arts. Economic front

• Hong Kong stocks close higher(20th October) Hong Kong stocks gained 184.50 points, or 0.83 percent, to close at 22,384.96 on Tuesday. Turnover rose to HK$74.18 billion ($9.58 billion) from Monday's HK$60.63 billion ($7.8 billion).

• HK's total export volume down 14.1% on year in August(20th October)

Hong Kong's total exports volume fell 14.1 percent in August compared with the same month last year, the Census and Statistics Department of Hong Kong Special Administrative Region government said on Tuesday.

The Census and Statistics Department said the volume of imports dropped 7.4 percent, while domestic exports dropped 33.5 percent and Hong Kong's re-exports fell 13.5 percent.

Comparing the first eight months this year with the same period last year, the volume of Hong Kong's re-exports fell 15.6 percent, while that of domestic exports dropped 39.2 percent. The volume of total exports of goods decreased 16.4 percent and the volume of imports fell 15.5 percent.

Prices of re-exports of goods rose 1.3 percent in this year's first eight months compared with the same period last year, while those of domestic exports rose 0.2 percent.


Compared with the same month last year, double-digit decreases were recorded for the total export volume in August to Germany at 23.8 percent, the UK at 21.6 percent, the United States at 12.8 percent and the Chinese mainland at 12.1 percent but the decrease for Japan was only 4.8 percent.

The import volume from all main suppliers decreased, such as the United States at 17.9 percent, Japan at 15.1 percent, the Chinese mainland at 8.9 percent, China's Taiwan at 5.2 percent and Singapore at 2.2 percent.

• HK unemployment rate records first drop(20th October) Hong Kong's labor market has begun to improve as the latest seasonally adjusted unemployment rate recorded its first drop since the outbreak of the global financial turmoil last year, said the Hong Kong Special Administrative Region government on Monday. Hong Kong's seasonally adjusted unemployment rate fell from 5.4 percent in the June-August period to 5.3 percent in July-September. The underemployment rate remained unchanged at 2.4 percent, the Census and Statistics Department said on Monday. Secretary for Labor and Welfare Matthew Cheung said as business conditions gradually improve and the labor market stabilizes, employers may adopt a more positive attitude towards recruitment. "This is expected to ease the pressure on the unemployment rate in the near term," Cheung said. Total employment in July-September was 3,495,500, about the same as June-August which stood at 3,495,300. The labor force fell 7, 400 to 3,704,700 in July-September. The number of unemployed fell 7,700 to 209,100 in July- September while the number of underemployed rose 1,700 to 89,900. Falls in the unemployment rate were mainly observed in the construction, information and communications, arts, entertainment and recreation sectors. The unemployment rate of people aged 15 to 19 fell 2.7 percent to 25.7 percent, showing that the local government's efforts to boost youth employment have begun to take effect. Cheung also noted that the recovery path may still be uneven as overseas markets have yet to show visible improvement. He said the government will promote employment on all fronts through training, retraining and skills upgrading.

• Minsheng bank to be listed in HK within 2009(23rd October) China Minsheng Banking Corp, the nation's first privately owned lender, won the overwhelming approval vote by its shareholders Monday to revive an initial H-share sale after shelving the plan for four years and is likely to be listed in Hong Kong by the end of the year. "Minsheng's initial public offering on the H-share market has done with important technical obstacles and the move will be completed by the end of the year if... The full text is available in the June Issue of China Banking.


CENTRAL ASIA Business & Politics in the Muslim World

Weekly Report Central Asia

October 10, 2009 to October 16, 2009 Uzma Siraj

Table of Contents Azerbaijan Political Front………………………………………………………………...4 Geo Strategic Front…………………………………………………………..5 Economic /Energy Front……………………………………………………..5 Social Front…………………………………………………………………..6 Kazakastan Political Front………………………………………………………………..6 Geo Strategic Front…………………………………………………………..7 Economic /Energy Front……………………………………………………..7 Social Front…………………………………………………………………..7 Kyrgyzstan Political Front………………………………………………………………...8 Geo Strategic Front…………………………………………………………..8 Economic /Energy Front……………………………………………………..8 Social Front…………………………………………………………………..9 Tajikistan Political Front………………………………………………………………...9 Geo Strategic Front………………………………………………………….10 Economic /Energy Front…………………………………………………….10 Social Front………………………………………………………………….10 Turkmenistan Political Front………………………………………………………………..10 Geo Strategic Front…………………………………………………………..11 Economic /Energy Front……………………………………………………..11 Social Front…………………………………………………………………..12 Uzbekistan Political Front………………………………………………………………..12 Geo Strategic Front…………………………………………………………..12 Economic /Energy Front……………………………………………………..12 Social Front…………………………………………………………………..13 Outline Azerbaijan Political Front

• Azerbaijani Opposition Under Attack As Campaigning Begins • Azerbaijani opposition parties to hold next Karabakh forum • OSCE holds workshop on election monitoring in Baku


• OSCE Baku office comments on Azerbaijan's Electoral Code • Azerbaijani left party proposes to discuss Turkey-Armenia protocols in

parliament Geo Strategic Front

• Azerbaijan Rejects Armenia-Turkey Deal • Turkey will never do anything that will dissatisfy Azerbaijan: Turkish minister • Turkish foreign minister to visit Azerbaijan • Protest action held in front of Turkish embassy in Azerbaijan • Cooperation between Turkey, Armenia encourages continuation of Armenian

occupation: Azerbaijani deputy FM Economic /Energy Front

• Azerbaijan and Russia should continue efforts to create stable and diversified relations: deputy minister

• Azerbaijan will always be reliable gas supplier to Europe: Hungary's Special Envoy for Nabucco

• EBRD announces amount of investments in Azerbaijani economy in 2010 • World crisis slightly affected Azerbaijan: CIS executive committee chief • Azerbaijani, Uzbek Auditor Chambers sign cooperation agreement • SOCAR, Gazprom sign gas deal

Social Front • Only Caucasus Muslims Office to organize pilgrimage from Azerbaijan: Sheik-ul-

Islam • Azerbaijani president sends a message to participants of VI Conference of Culture

Ministers of Islamic countries Kazakhstan Political Front

• Kazakh Opposition Parties Announce Merger • Kazakhs not yet ready to see Nazarbayev president for life – poll • United opposition has chances to get into parliament – experts

Geo Strategic Front • Kazakh delegation departs for Athens to participate in OSCE Parliamentary

Assembly Fall Meetings • Kazakh president expected at Global Nuclear Security Summit in Washington

Economic /Energy Front • OSCE organizes workshop in Kazakhstan on oil spills response • Halyk Bank places 67.5 million common shares • Areva and Kazatomprom established joint venture • Kazakhstan invites France to invest $6.5 billion in power generation sector • Kazakhstan, USA sign joint action plan in energy sphere

Social Front • Kazakh Police Search Jewelry Firm On Smuggling Suspicions • Margulan Mukhambetov, pictured at a refugee camp in the Czech Republic. • Regional TV Director Alleges Kazakh Pressure • Kazakhs parliament concerned with long working hours of Kazakh state officials

Kyrgyzstan


Political Front • At least 12 Hizb ut-Tahrir members detained in Kyrgyzstan • MP: Political persecutions could end up with religious opposition

Geo Strategic Front • Kyrgyz PM flies to China for SCO summit • Kyrgyzstan to host next SCO Council meeting • Kyrgyz, Kazakh premiers to talk security at SCO Council meeting • CSTO: Russia to establish united military base in Kyrgyzstan

Economic /Energy Front • Kyrgyzstan’s tax debt hits 1,293bln. • Kyrgyzstan faring well in economic crisis, IMF says • Kyrgyzstan pays out $3.5M of its gas debt to Uzbekistan • K Kyrgyz PM, Chinese Railways Minister to discuss construction of China-

Europe railway • Uzbekistan resumes full gas supply to Kyrgyzstan • Uzbekistan demands Kyrgyz PM to sign gas debt repayment schedule • Kyrgyz MPs endorse draft agreement on renting pasture areas to Tajikistan

Social Front • Kyrgyz Supporters Of Jailed Kazakh Rights Activist Get Warning • Pension’s insurance component to increase by 15 percent in 2010 • Rightists nabbed near Kazakh Embassy in Bishkek • Kyrgyzstan raises family income supplements

• Bishkek to hold anti-global warming campaign

Tajikistan Political Front

• Political parties in Sughd discuss ways how to make parliamentary elections democratic

• Parliament passes new criminal procedural code Geo Strategic Front

• CIS summit in Chisinau ends with signing of documents, chairmanship transfer • Rahmon invites Berdymukhamedov to pay official visit to Tajikistan in 2010 • President Rahmon departs for Kazakhstan to attend 3rd stage of military exercise

for COFR Economic /Energy Front

• Central Asian trade ministers look to boost ties with U.S. • Tajikistan’s external trade turnover amounts to $2.4701 bln in Jan-Sept 09 • CSTO interstate commission for military and economic cooperation meets in

Dushanbe on Oct 16 Social Front

• Tajik president, Aga Khan inaugurate The Ismaili Center in Dushanbe • US$14.15 mln worth of humanitarian aid delivered to Tajikistan in Jan-Sept 09

Turkmenistan Political Front

• Minister of Health and Medical Industry of Turkmenistan severely reprimanded


• President of Turkmenistan replaces heads of several ministries and departments Geo Strategic Front

• Turkmenistan Denies Entry To Peace Corps Volunteers • Rahmon invites Berdymukhamedov to pay official visit to Tajikistan in 2010 • Presidents of Turkmenistan and Tajikistan hold talks in Caspian resort Avaza

Economic /Energy Front • Turkmen President Reshuffles Key Energy Officials • Turkmenistan to continue developing oil and gas industry despite global crisis • Turkmenistan reports 2,4 time increase in trade turnover with Russia's Astrakhan • Turkmenistan's GDP up 10.8 per cent in first nine months of 2009 • First International Investment Forum begins in Ashgabat • Turkmen fuel and energy sector undergoes major personnel reshuffle

Social Front • Citizens of Turkmenistan propose awarding title of national hero to head of state • Foundations of green park zones of future Caspian Sea resort laid

Uzbekistan Political Front

• The leader of Birdamlik movement goes back to Uzbekistan Geo Strategic Front

• Activists Urge EU Not To Lift Uzbekistan Arms Embargo • President of Uzbekistan receives US Assistant State Secretary

Economic /Energy Front • Azerbaijani, Uzbek Auditor Chambers sign cooperation agreement • Uzbekistan resumes full gas supply to Kyrgyzstan • Uzbekistan not going to quit Central Asia’s power system, Uzbek officials say

Social Front • Uzbekistan: Film Industry Flourishes After a Decade of Post-Soviet Decline • Uzbekistan: The Bukhara Students are forced to work at cotton fields

Summery Azerbaijan Political Front

• Azerbaijani Opposition Under Attack As Campaigning Begins Two high-ranking officials from the Musavat opposition party have been attacked after force was used to disperse a party meeting in the central city of Barda, RFE/RL's Azerbaijani Service reports.

• Azerbaijani opposition parties to hold next Karabakh forum The union including Azerbaijani opposition parties will hold next Karabakh forum. "There is necessity in next broad discussions taking into account that the protocols signed between Turkey and Armenia will delay settlement of Nagorno-Karabakh conflict," said Ahmad Oruj, chairman of Azadlig party represented in the Union for Democracy.

• OSCE holds workshop on election monitoring in Baku The OSCE Office in Baku launched workshops on election monitoring for political parties on Oct. 13. Representatives of 12 political parties represented in the Milli Mejlis


(Parliament) will participate in workshops to be held in Baku and ten regions of Azerbaijan till Nov. 1.

• OSCE Baku office comments on Azerbaijan's Electoral Code Azerbaijan's electoral legislation allows conducting democratic elections, head of OSCE office in Baku, ambassador Ali Bilge Jankorel told reporters. Azerbaijan will hold municipal elections Dec. 23.

• Azerbaijani left party proposes to discuss Turkey-Armenia protocols in parliament

Azerbaijani People's Socialist Party sent a proposal to Milli Majlis (parliament) to hold discussions on signing of the protocols on normalization of relations between Turkey and Armenia. Geo Strategic Front

• Azerbaijan Rejects Armenia-Turkey Deal Azerbaijan has sharply criticized Turkey for agreeing to normalize ties with Armenia. AFP news agency quotes the Azerbaijani Foreign Ministry as saying in a statement that the normalization of relations between Turkey and Armenia before the withdrawal of Armenian forces from occupied Azerbaijani territory would be "in direct contradiction with the interests of Azerbaijan

• Turkey will never do anything that will dissatisfy Azerbaijan: Turkish minister "We believe peace in the region will benefit everyone." "Turkey is one of the powerful countries of the region. The peace atmosphere in the region is interesting for Azerbaijan and Armenia mostly because peace and stability leads to the economic development, but tensions between the countries forces them to spend their resources to the armament," Turkish Culture and Tourism Minister Ertugrul Gunay said.

• Turkish foreign minister to visit Azerbaijan Turkish Foreign Minister Ahmet Davutoglu will visit Azerbaijan next week, said Spokesman for the Turkish government Cemil Chichek.

• Protest action held in front of Turkish embassy in Azerbaijan Azerbaijan National Democratic Party staged a protest action in front of Turkish embassy in Azerbaijan on Oct. 14 in a protest against the protocols on normalization of relations signed between Turkey and Armenia

• Cooperation between Turkey, Armenia encourages continuation of Armenian occupation: Azerbaijani deputy FM

“Azerbaijan has already announced position on the signing of Turkish-Armenian protocols in the statements issued by the Ministry of Foreign Affairs of Azerbaijan on August 30 and October 10, 2009 and President Ilham Aliyev’s interview to Azerbaijan Television in Chisinau on October 9, 2009”, Economic /Energy Front


Russia still remains one of the major trade partners of Azerbaijan, and exports to Azerbaijan occupies a leading position with a percentage of 17.5 percent, said the trade representative of Russia in Azerbaijan Yuri Shedrin at the meeting of Azerbaijan-Russia Chamber of Business Cooperation on Oct 2.



Partners on the implementation of the European pipeline project doubt in Iran's readiness to start exporting its gas through Nabucco. Hungary's Special Envoy for Nabucco Mihály Bayer said that "in principle" Nabucco may transport [...] Iranian gas, but the question is: May Iran transport its gas and if it has any power to become a gas supplier for this project."

• EBRD announces amount of investments in Azerbaijani economy in 2010 The European Bank for Reconstruction and Development (EBRD) plans to invest over $200 million in Azerbaijani economy in 2010, head of EBRD office in Azerbaijan Francis Daley said.

• World crisis slightly affected Azerbaijan: CIS executive committee chief The plan of joint action to overcome consequences of the global financial and economic crisis is planned to be approved at the council of CIS participant countries' heads in Yalta on November 20, chairman of the CIS Executive Committee Sergey Lebedev said at II International Banking Conference of the Commonwealth of Independent States (CIS)

• Azerbaijani, Uzbek Auditor Chambers sign cooperation agreement Head of the Azerbaijan Chamber of Auditors Vahid Novruzov and his Uzbek counterpart Ravshan Haydarov signed a cooperation agreement on Oct. 13. Speaking to the signing ceremony, the chief of the Azerbaijan Chamber of Auditors spoke of President Ilham Aliyev`s attention towards developing audit in the country.

• SOCAR, Gazprom sign gas deal On Oct. 14, the State Oil Company of Azerbaijan Republic (SOCAR) and Russia's Gazprom signed a medium-term contract to supply of Azerbaijani gas to Russia. From Azerbaijan, the contract was signed by SOCAR President Rovnag Abdullayev and from Russia by Gazprom CEO Aleksei Miller. Social Front

• Only Caucasus Muslims Office to organize pilgrimage from Azerbaijan: Sheik-ul-Islam

The pilgrimage from Azerbaijan will be organized only by the Caucasus Muslims Office (CMO), Chairman of the CMO Sheik-ul-Islam Haji Allahshukur Pashazade told reporters.

• Azerbaijani president sends a message to participants of VI Conference of Culture Ministers of Islamic countries

Azerbaijan is ready to continue efforts to promote intercultural dialogue, said the welcome letter from President Ilham Aliyev to the participants of VI Conference of Culture Ministers of the Organization of the Islamic Conference member states that began in Baku on Oct. 13. Kazakhstan Political Front

• Kazakh Opposition Parties Announce Merger The leaders of two major opposition parties in Kazakhstan have announced a merger between their parties, RFE/RL's Kazakh Service reports.

• Kazakhs not yet ready to see Nazarbayev president for life – poll


Around 42% of Kazakh citizens interviewed as part of a recent survey have named President Nursultan Nazarbayev their nation's leader. "Kazakh citizens of all ethnicities, genders and age groups view Nazarbayev as their leader," said Gulmira Ileulova, director of the Strategy center of social and political studies

• United opposition has chances to get into parliament – experts Almaty. October 15. Interfax-Kazakhstan – The Kazakh political analysts are actively discussing the merger of the two opposition parties and believe that the united opposition has all chances to get into the parliament . Geo Strategic Front

• Kazakh delegation departs for Athens to participate in OSCE Parliamentary Assembly Fall Meetings

Kazakh delegation led by the Senate Speaker Kasymzhomart Tokayev departed for Athens on Thursday to take part in OSCE Parliamentary Assembly Fall Meetings to discuss “Energy Security and Environment from 9 to 12 October.

• Kazakh president expected at Global Nuclear Security Summit in Washington Kazakhstan president Nursultan Nazarbayev is expected to take part in the Global Nuclear Security Summit in the USA in spring 2010. Economic /Energy Front

• OSCE organizes workshop in Kazakhstan on oil spills response Experts from countries on the Caspian Sea shore, international organizations, private sector and civil society will discuss how to best deal with oil spills during an OSCE workshop that starts in Atyrau, western Kazakhstan, today.

• Halyk Bank places 67.5 million common shares Almaty. October 9. Interfax-Kazakhstan – Kazakhstan-based Halyk Bank is placing 67,533,545 authorized but unplaced common shares (the Shares), the bank says in a statement.

• Areva and Kazatomprom established joint venture Àstana. October 6. Interfax-Kazakhstan - French Areva and Kazakhstan’s national nuclear company Kazatomprom has established a joint venture for fuel marketing, Integrated Fuel Asia Star (IFASTAR).

• Kazakhstan invites France to invest $6.5 billion in power generation sector Astana. October 6. Interfax-Kazakhstan – Power generating facilities in Kazakhstan require $6.5 billion in investments, managing director of Samruk-Kazyna, Aidan Karibzhanov, said inviting the French companies to join the power generating projects in Kazakhstan."In order to meet the rising demand for electricity, Kazakhstan needs new generating facilities and modernization of the operating ones.

• Kazakhstan, USA sign joint action plan in energy sphere Kazakhstan and the United States have signed the joint action plan in energy sector during the session of joint Kazakh-USA energy partnership commission on Thursday Social Front

• Kazakh Police Search Jewelry Firm On Smuggling Suspicions Kazakh financial police have searched the offices and shops of the Altyn Jewelry company, RFE/RL's Kazakh Service reports. Murat Zhumabay, a spokesman for the financial police, told journalists in Astana that all of Altyn's shops and offices in Kazakhstan are being searched because the company is suspected of jewel smuggling

• Margulan Mukhambetov, pictured at a refugee camp in the Czech Republic


Relatives of a Kazakh man deported from the Czech Republic to Kazakhstan over the weekend are concerned about his whereabouts, RFE/RL's Kazakh Service reports.

• Regional TV Director Alleges Kazakh Pressure The director of a Central Asian satellite TV channel says Kazakh authorities began pressuring his company after it interviewed a former presidential son-in-law who'd fallen out of favor with President Nursultan Nazarbaev, RFE/RL's Kazakh Service reports.

• Kazakhs parliament concerned with long working hours of Kazakh state officials Majilis members, Zhakip Asanov and Bakhyt Syzdykova expressed their deep concern with the lifestyle and work environment of Kazakh state officials. Kyrgyzstan Political Front

• At least 12 Hizb ut-Tahrir members detained in Kyrgyzstan At least 12 active members of the extremist organization Hizb ut-Tahrir have been detained in course of the joint operation of the National Security Committee and the Interior Ministry in Kyrgyzstan

• MP: Political persecutions could end up with religious opposition Continuing political persecutions could result in establishment of a religious opposition in five years in Kyrgyzstan, Roza Otunbaeva, a parliament member from the Social Democratic fraction told reporters in Bishkek, Tuesday. Geo Strategic Front

• Kyrgyz PM flies to China for SCO summit The Prime Minister of Kyrgyzstan has left for China to take part in summit of the Shanghai Cooperation Organization’s Heads of Government Council to run in Beijing

• Kyrgyzstan to host next SCO Council meeting Next meeting of the Shanghai Cooperation Organization Council of Heads of Government will take place in Kyrgyzstan in 2010, the Prime Minister Igor Chudinov said in Beijing Wednsday. “I will be glad to welcome all participants of the current session on the hospitable Kyrgyz land in 2010

• Kyrgyz, Kazakh premiers to talk security at SCO Council meeting Prime Ministers of Kyrgyzstan and Kazakhstan will hold bilateral discussion over energy security. Igor Chudinov and Karim Masimov will meet in Beijing later Wednesday after official meetings of the SCO Heads of Governments Council.

• CSTO: Russia to establish united military base in Kyrgyzstan A military base to unite all Russian military objects in Kyrgyzstan, including Kant airbase, will be established in the republic, Nikolai Bordyuzha, Secretary General for the Collective Security Treaty Organization told Russian mass media on October 14. Economic /Energy Front

• Kyrgyzstan’s tax debt hits 1,293bln State Committee for Taxes and Dues said Monday the tax payable has hit 1,293 billion soms in Kyrgyzstan. As of January 1, 2009 the amount made up to 3,487 billion soms.

• Kyrgyzstan faring well in economic crisis, IMF says Kyrgyzstan, Tajikistan and Georgia are reportedly faring better in the global recession than other Central Asian countries, Regional economic outlook: Middle East and Central Asia-2009, by the International Monetary Fund said

• Kyrgyzstan pays out $3.5M of its gas debt to Uzbekistan


Kyrgyzstan has paid out $3.5 million of its gas debt to Uzbekistan, Kyrgyzgas company informed the news agency 24.kg Monday.

• K Kyrgyz PM, Chinese Railways Minister to discuss construction of China-Europe railway

Igor Chudinov the Prime Minister of Kyrgyzstan and Liu Zhijun the Railways Minister of China will discuss construction of China-Europe railway in Beijing later Wednesday.

• Uzbekistan resumes full gas supply to Kyrgyzstan Uzbekistan resumes full gas supply to all regions of Kyrgyzstan, director of the Kyrgyzgas Company Salamat Aitikeev told 24.kg Thursday morning. Aitikeev left for Tashkent Wednesday to bargain with the neighbors about possible continuation of gas relations between the two countries.

• Uzbekistan demands Kyrgyz PM to sign gas debt repayment schedule Uzbekistan to resume gas supply to Kyrgyzstan only on a condition that the Prime Minister, Igor Chudinov, signs a debt repayment schedule, informal sources in government informed 24.kg.

• Kyrgyz MPs endorse draft agreement on renting pasture areas to Tajikistan On Tuesday October 13, the Zhogorku Kenesh (Kyrgyzstan’s parliament) Committee on Regional Development and Local Government considered and endorsed a draft agreement on renting pasture areas in the Batken region to Tajikistan, Kyrgyzstan’s news agency AKIPress reported. Social Front

• Kyrgyz Supporters Of Jailed Kazakh Rights Activist Get Warning Three Kyrgyz activists have been detained for supporting jailed Kazakh human rights activist Yevgeny Zhovtis, RFE/RL's Kyrgyz Service reports.

• Pension’s insurance component to increase by 15 percent in 2010 It is planned to increase insurance component of pensions by 15 percent in Kyrgyzstan starting from March 1, 2010, Tajikan Kalimbetova, Chairwoman of the Social Fund said at the Migration, Labor, Social Policy and Health Care Committee’s session on Monday

• Rightists nabbed near Kazakh Embassy in Bishkek A group of local human rights activists was held near the Kazakh Embassy in Bishkek, Monday morning.

• Kyrgyzstan raises family income supplements Kyrgyz government will raise family income supplements for unemployed citizens with no right for retirement benefits from 200 to 240 soms, press service of the Kyrgyz Finance Ministry reported.

• Bishkek to hold anti-global warming campaign Peaceful ecologic anti-global warming campaign with a symbolic name "350" will be held at the central Ala-Too Square in Bishkek on October 24, organizers of the event told the news agency 24.kg Tajikistan Political Front


On Wednesday October 14, representatives of political parties and public associations functioning in the Sughd province gathered in Khujand to discuss ways how to make the parliamentary elections due in February 2010 more democratic.


• Parliament passes new criminal procedural code Deputies of the Majlisi Namoyandagon (Tajikistan’s lower chamber of parliament) have endorsed a draft law on adoption of a new criminal-procedural code of the country. Geo Strategic Front

• CIS summit in Chisinau ends with signing of documents, chairmanship transfer The CIS summit in the Moldavian capital Chisinau ended with the signing of several documents and the CIS chairmanship transfer from Moldova to Russia. According to Russia’s Itar-Tass, CIS Executive Committee Chairman Sergey Lebedev said, “

• Rahmon invites Berdymukhamedov to pay official visit to Tajikistan in 2010 During his visit to Turkmenistan on October 9-10, President Emomali Rahmon invited his Turkmen counterpart, President Gurbanguly Berdymukhamedov, to pay an official visit to Tajikistan in 2010, according to presidential press service.

• President Rahmon departs for Kazakhstan to attend 3rd stage of military exercise for COFR

President Emomali Rahmon departed for Kazakhstan today afternoon. Tomorrow, along with other heads of member nations of the Collective Security Treaty Organization (CSTO) President Emomali Rahmon will attend the third stage of the military exercise for the new Collective Operation Reaction Forces (COFR) created within the framework of the CSTO Economic /Energy Front

• Central Asian trade ministers look to boost ties with U.S. Trade ministers from five Central Asia countries and Afghanistan are in Washington this week for talks on expanding trade and investment, Raio Liberty reported on October 9.

• Tajikistan’s external trade turnover amounts to $2.4701 bln in Jan-Sept 09 -- Over the first nine months of this year, Tajikistan’s external trade turnover including electrical power and natural gas, has amounted to 2.4701 billion U.S. dollars, which was 71.9 percent of the January-September 2008 level or 966..5 million dollars fewer, the head of the Customs Service Nemat Rahmatov told reporters in Dushanbe today. According to him, Tajikistan had trade relations with 96 countries of the world, including 11 CIS states over the report period.

• CSTO interstate commission for military and economic cooperation meets in Dushanbe on Oct 16

The seventh session of the Interstate Commission for Military and Economic Cooperation of the Collective Security Treaty Organization (CSTO) will be held in Dushanbe on October 16. Social Front

• Tajik president, Aga Khan inaugurate The Ismaili Center in Dushanbe President Emomali Rahmon and His Highness the Aga Khan, the Spiritual Leader of the Shia Ismaili Muslims, officially opened The Ismaili Center in Dushanbe today afternoon.

• US$14.15 mln worth of humanitarian aid delivered to Tajikistan in Jan-Sept 09 In January-September 2009, 14.16 million U.S. dollars worth of humanitarian aid has been delivered to the Sughd province, which is 2.99 million U.S. dollars more than in the same period of last year, the first deputy head of the Sughd customs service, Turkmenistan Political Front

• Minister of Health and Medical Industry of Turkmenistan severely reprimanded


During the October 14 expanded government meeting, Turkmen President Gurbanguly Berdimuhamedov criticized the activities of the Ministry of Health and Medical Industry of the country.

• President of Turkmenistan replaces heads of several ministries and departments On October 14, at the enlarged meeting of the Cabinet of Ministers of Turkmenistan, President Gurbanguly Berdimuhamedov relieved Environment Minister Magtymguly Akmyradov of his duties "in connection with his transfer to another job." Geo Strategic Front

• Turkmenistan Denies Entry To Peace Corps Volunteers Turkmenistan has denied entry to dozens of U.S. Peace Corps volunteers, RFE/RL's Turkmen Service reports. Acting Country Director Christopher Leal told RFE/RL that 47 Peace Corps volunteers scheduled to come to Turkmenistan on September 30 were told the day before boarding a plane in Philadelphia that they would not be allowed to enter Turkmenistan if they traveled there.

• Rahmon invites Berdymukhamedov to pay official visit to Tajikistan in 2010 During his visit to Turkmenistan on October 9-10, President Emomali Rahmon invited his Turkmen counterpart, President Gurbanguly Berdymukhamedov, to pay an official visit to Tajikistan in 2010, according to presidential press service.

• Presidents of Turkmenistan and Tajikistan hold talks in Caspian resort Avaza President of Turkmenistan Gurbanguly Berdimuhamedov and President of Tajikistan Emomali Rakhmon held talks in the Caspian Sea resort "Avaza". A number of bilateral documents were signed as a result of talks. Economic /Energy Front

• Turkmen President Reshuffles Key Energy Officials Turkmenistan's President Gurbanguly Berdymukhammedov has reshuffled the gas-producing Central Asian country's senior energy officials, accusing some of negligence and inefficiency, state media said. Berdymukhammedov demoted Oil and Gas Minister Annaguly Deryaev, naming him the head of state oil firm Turkmenneft.

• Turkmenistan to continue developing oil and gas industry despite global crisis During the October 12 field meeting on the issue of further development of the fuel and energy sector of Turkmenistan, President Gurbanguly Berdimuhamedov urged the industry managers to be more active in further modernizing the infrastructure, developing and strengthening the raw material base of the oil and gas industry,

• Turkmenistan reports 2,4 time increase in trade turnover with Russia's Astrakhan In 2009, trade turnover between Turkmenistan and Astrakhan region of Russia increased 2,4 times year-on-year. This was reported by the press-service department and information policy of the administration the Governor of Astrakhan region.

• Turkmenistan's GDP up 10.8 per cent in first nine months of 2009 All branches of the national economy of Turkmenistan reported high growth for the period of January-September 2009, Chairman of the State Committee on Statistics Ashirguly Gurbangulyev said at a government meeting on 14 October.

• First International Investment Forum begins in Ashgabat An International Investment Forum kicked off at the Exhibition Center in Ashgabat on October 15. The forum brought together over 600 heads of major foreign companies, stock exchanges, commercial banks, representatives of consulting and rating agencies from more than 50 countries.


• Turkmen fuel and energy sector undergoes major personnel reshuffle On September 12, President of Turkmenistan Gurbanguly Berdimuhamedov held a field meeting on the issues related to development of the fuel and energy sector and the state of affairs in the industry. Social Front

• Citizens of Turkmenistan propose awarding title of national hero to head of state Speaking at a government meeting on October 14, chairman of the Central Commission on Elections and Referenda of Turkmenistan Murad Karryev reported on "numerous requests from citizens and labor collectives of enterprises, institutions and public organizations from all over the country to confer the title of Hero of Turkmenistan on President Gurbanguly Berdimuhamedov.

• Foundations of green park zones of future Caspian Sea resort laid A tree planting campaign was held on October 9 in the Caspian Sea coast with the participation of President of Turkmenistan Gurbanguly Berdimuhamedov. During the action, future park zones were laid in the territory of the national tourist zone Avaza. Uzbekistan Political Front

• The leader of Birdamlik movement goes back to Uzbekistan Bakhodir Choriev, Uzbek political emigrant and the leader of Birdamlik (Solidarity) movement, decided to go back to Uzbekistan and continue his political activity at home. This is indicated in his letter, directed to Ferghana.Ru. Geo Strategic Front

• Activists Urge EU Not To Lift Uzbekistan Arms Embargo Rights activists from the Independent Civil Society of Uzbekistan in Germany are calling on the European Union not to lift its last sanction against Tashkent, RFE/RL's Uzbek Service reports.

• President of Uzbekistan receives US Assistant State Secretary President of Uzbekistan Islam Karimov received US Assistant State Secretary for South and Central Asian Affairs Robert Blake on 12 October in Tashkent. Uzbekistan and the US had been developing relations in various spheres, which, among others, cover a wide range of issues of international policy, Islam Karimov stated. Among them are combating transnational threats and strengthening regional security and stability, President's press service reported. Economic /Energy Front

• Azerbaijani, Uzbek Auditor Chambers sign cooperation agreement Head of the Azerbaijan Chamber of Auditors Vahid Novruzov and his Uzbek counterpart Ravshan Haydarov signed a cooperation agreement on Oct. 13. Speaking to the signing ceremony, the chief of the Azerbaijan Chamber of Auditors spoke of President Ilham Aliyev`s attention towards developing audit in the country.

• Kyrgyzstan pays out $3.5M of its gas debt to Uzbekistan Kyrgyzstan has paid out $3.5 million of its gas debt to Uzbekistan, Kyrgyzgas company informed the news agency 24.kg Monday.

• Uzbekistan resumes full gas supply to Kyrgyzstan Uzbekistan resumes full gas supply to all regions of Kyrgyzstan, director of the Kyrgyzgas Company Salamat Aitikeev told 24.kg

• Uzbekistan not going to quit Central Asia’s power system, Uzbek officials say


Uzbekistan is not going to quit Central Asia’s power system, Uzbek state-run joint-stock company Uzbekenergo stated yesterday, according to Kazakhstan’s news agency Kaz TAG. Social Front

• Uzbekistan: Film Industry Flourishes After a Decade of Post-Soviet Decline Film industry is flourishing in Uzbekistan as low-budget movies starring famous singers and utilizing heart-wrenching plots are gaining popularity with the Uzbek audiences. However, widespread copyright piracy and shortage of investment remain major roadblocks for the industry’s development.

• Uzbekistan: The Bukhara Students are forced to work at cotton fields Over a thousand students of the Bukhara State University were sent to cotton fields. Ferghana.Ru found the document, proving the fact of blackmail and threat that force students to work at cotton fields. Detailed Report Azerbaijan Political Front

• Azerbaijani Opposition Under Attack As Campaigning Begins BAKU -- Two high-ranking officials from the Musavat opposition party have been attacked after force was used to disperse a party meeting in the central city of Barda, RFE/RL's Azerbaijani Service reports. Musavat Deputy Chairman and parliamentarian Arif Hajili told RFE/RL that he and parliament deputy Ikram Israfilov were attacked by local members of the ruling Yeni Azerbaijani Party on October 8 during a campaign event. The local branch of Yeni Azerbaijani denied participating in any attack. The incident occurred two days after the beginning of campaigning for local elections. Barda city official Mazahir Gasimov described the incident as a "mob's reaction," saying that the Musavat party "irritated the population" when they were in power from 1992-1993. Because "we live in a democratic society," Gasimov said, people wonder why it is necessary for opposition parties to continue their activities. After the attack, Musavat tried to move its meeting to the nearby town of Yevlakh but its supporters were confronted by a road blockade set up by police. Mustafa Hajibeyli, a journalist who witnessed the confrontation with police, said there were 10 police cars surrounding the group. He said one police car followed them all the way back to Barda. In Baku, Internal Affairs Ministry spokesman Ehsan Zahidov told RFE/RL that he was unaware of the incident and said that even if the event took place it would be "absolutely legal." He added that Musavat tried to hold an "unsanctioned meeting" in Yevlakh and "it is a duty of law-enforcement agencies to prevent illegal actions."

• Azerbaijani opposition parties to hold next Karabakh forum The union including Azerbaijani opposition parties will hold next Karabakh forum. "There is necessity in next broad discussions taking into account that the protocols signed between Turkey and Armenia will delay settlement of Nagorno-Karabakh conflict," said Ahmad Oruj, chairman of Azadlig party represented in the Union for Democracy. Armenian and Turkish Foreign Ministers Edward Nalbandyan and Ahmet Davutoglu signed Ankara-Yerevan protocols in Zurich on Oct. 10. Turkey and Armenia achieved the agreement to launch 'internal political consultations' concerning signing of 'Protocol on establishment of diplomatic relations' and 'Protocol on development of bilateral relations'


during the talks under Switzerland's mediation late August. Oruj said that major topic of discussions at the forum to be held on Oct. 19 will be the way of these protocols' conformity with Azerbaijani interests. "We think that in case the border is opened and intensified efforts by Turkey, there will be no serous changes in solving Nagorno-Karabakh problem within Azerbaijani territorial integrity," chairman of the party said. The Nagorno-Karabakh conflict is a national problem. Thus, they want representatives of all opposition parties, as well as ruling party and the government to participate in this forum, Oruj said. "So, we will send invitations to the Azerbaijani foreign ministry and presidential administration," he said. The Union for Democracy was established by opposition parties the Classic People's Front, Azadliq and the National Democracy, the Great Azerbaijani Party and the Party of National Salvation. The union is an body of cooperation and consultation.

• OSCE holds workshop on election monitoring in Baku The OSCE Office in Baku launched workshops on election monitoring for political parties on Oct. 13. Representatives of 12 political parties represented in the Milli Mejlis (Parliament) will participate in workshops to be held in Baku and ten regions of Azerbaijan till Nov. 1. The event aims to inform the representatives of political parties on the key OSCE commitments for democratic elections, study methodology, international experience in this area and instructions to prevent interference of observers from political parties in the electoral process. Municipal elections in Azerbaijan will be held on Dec. 23. In previous elections, there were some problems, said the head of OSCE Office in Baku, Ambassador Ali Bilge Cankorel. "Basically, the problems were related to the lack of dialogue between political parties, issues such as the formation of election commissions, voting of military personnel, intervention of the heads and bodies of executive power in the electoral process, intervention of the executive bodies in the press during the election campaign and during the elections, the participation of independent observers, and observers from political parties," said the ambassador. Such seminars will enhance credibility of the electoral process for all parties, as well as relations between the representatives of political organizations in the regions. The OSCE Office in Baku will also hold training sessions for long-term and short-term independent observers. Workshops will be held on the basis of OSCE commitments for democratic elections and the electoral legislation of Azerbaijan. Volunteer observers can use hotline services and legal

• OSCE Baku office comments on Azerbaijan's Electoral Code Azerbaijan's electoral legislation allows conducting democratic elections, head of OSCE office in Baku, ambassador Ali Bilge Jankorel told reporters. Azerbaijan will hold municipal elections Dec. 23. Electoral Code of the Azerbaijani Republic was adopted in 2003. It was designed together with the Venice Commission of the Council of Europe, as well as the OSCE Office for Democratic Institutions and Human Rights. Jankorel said that it is possible to make amendments in electoral legislation on several issues. OSCE office in Baku plans to discuss electoral legislation with heads of political parties during 'round table' on the eve of elections, he said.

• Azerbaijani left party proposes to discuss Turkey-Armenia protocols in parliament

Azerbaijani People's Socialist Party sent a proposal to Milli Majlis (parliament) to hold discussions on signing of the protocols on normalization of relations between Turkey and


Armenia. Turkish and Armenian foreign ministers Ahmet Davutoglu and Edward Nalbandian signed the Ankara-Yerevan protocols in Zurich on Oct. 10. Diplomatic relations between Armenia and Azerbaijan have been severed since 1993 due to occupation of Azerbaijani lands by Armenia and Armenia's claims of so-called "genocide."Azerbaijani People's Socialist Party proposes to hold discussions in the parliament before ratification of the protocols in the Turkish legislative body, chairman of the party Rovshan Huseynov told reporters. The party also proposes to recall Azerbaijani ambassador to Turkey and reconsider participation of the country in the international projects with Ankara's participation. Huseynov said that signing of the protocols was advantageous for neither Azerbaijan nor Armenia which lost such an ally as Russia. Only Turkey gained in this issue, he said Geo Strategic Front

• Azerbaijan Rejects Armenia-Turkey Deal U.S. Secretary of State Hillary Clinton speaks with Armenian Foreign Minister Eduard Nalbandian after the signing ceremony on October 10 BAKU -- Azerbaijan has sharply criticized Turkey for agreeing to normalize ties with Armenia. AFP news agency quotes the Azerbaijani Foreign Ministry as saying in a statement that the normalization of relations between Turkey and Armenia before the withdrawal of Armenian forces from occupied Azerbaijani territory would be "in direct contradiction with the interests of Azerbaijan. The statement continues to say that this action "casts a shadow over the spirit of brotherly relations" between Azerbaijan and Turkey, which it says are built on deep historical roots. It says Azerbaijan believes that the unilateral opening of the Turkish-Armenian border would call into question the architecture of peace and stability in the region. The Azerbaijani reaction comes after Turkey and Armenia on October 10 signed accords to restore diplomatic ties and open borders after almost a century of enmity. Officials said Armenian Foreign Minister Edouard Nalbandian and his Turkish counterpart Ahmet Davutoglu inked the two protocols in a ceremony in Switzerland. The bitterness between Turkey and Armenia has centered on the deaths of more than 1 million Armenians under the Ottoman Turks during World War I. Armenia says the deaths were genocide, which Turkey denies.

• Turkey will never do anything that will dissatisfy Azerbaijan: Turkish minister "We believe peace in the region will benefit everyone." "Turkey is one of the powerful countries of the region. The peace atmosphere in the region is interesting for Azerbaijan and Armenia mostly because peace and stability leads to the economic development, but tensions between the countries forces them to spend their resources to the armament," Turkish Culture and Tourism Minister Ertugrul Gunay said. "Azerbaijan is a state of same nation with us. We respect the independence of Azerbaijan, but we don’t see Azerbaijan disintegrated from us. We say “One nation and two states” in Kazakhstan and Kyrgyzstan too, but we feel it better in Azerbaijan and Turkey. I see warm welcoming in Baku and Azerbaijani minister of culture is also welcomed in Turkey warmly. We are two states with same language, same ethnic roots and same religions. It is impossible for us to do something not paying attention to the Azerbaijan’s sensibility," he said. "We want our every action to bring benefits to Azerbaijan. Armenia has occupied part of Azerbaijani lands. We are making Armenia to understand it and to withdraw its forces. Our prime minister immediately visited Baku when he saw Azerbaijan’s concern and addressed the Azerbaijani parliament. Prime Minister Erdogan said that we would never


make a step making Azerbaijan to hesitate. We are keeping our promise. But it needs to realize that there is no solution of problem without discussing it at the negotiation table," he said. "The protocol of goodwill signed between Turkey and Armenia will bring benefit to the region, particularly to Azerbaijan. If Armenia wants to overcome poverty, it must to work to normalize its relations with us and with Azerbaijan. Let everyone not to worry, we will never do anything that will dissatisfy Azerbaijan," he said.

• Turkish foreign minister to visit Azerbaijan Turkish Foreign Minister Ahmet Davutoglu will visit Azerbaijan next week, said Spokesman for the Turkish government Cemil Chichek. On Oct. 21, Davutoglu is expected to brief the Turkish parliament about the protocols signed with Armenia. Ahmet Davutoglu will attend the meeting of foreign ministers of the Black Sea Economic Cooperation Organization in Baku on Oct. 21-22.

• Protest action held in front of Turkish embassy in Azerbaijan Azerbaijan National Democratic Party staged a protest action in front of Turkish embassy in Azerbaijan on Oct. 14 in a protest against the protocols on normalization of relations signed between Turkey and Armenia. ANDP members raised the Turkish and Azerbaijani flags and chanted “AKP, Armenian, the enemy of Turk”, “Bozkurtlar are immortal, Motherland is indivisible”, Down with Armenia”, “Forever Turkic Union”. A resolution was read out at the end of 10-minute protest action, which condemned the Turkish government’s stance. The party called on the Turkish parliament not to ratify the protocols. After the resolution read out, police dispersed the protesters. Six ANDP activists were detained and taken to police office

• Cooperation between Turkey, Armenia encourages continuation of Armenian occupation: Azerbaijani deputy FM

“Azerbaijan has already announced position on the signing of Turkish-Armenian protocols in the statements issued by the Ministry of Foreign Affairs of Azerbaijan on August 30 and October 10, 2009 and President Ilham Aliyev’s interview to Azerbaijan Television in Chisinau on October 9, 2009”, Deputy Minister of Foreign Affairs of Azerbaijan Araz Azimov said. The deputy minister said Azerbaijan understood the importance of Turkey’s efforts to solve its historical problems and to normalize relations with Armenia. “Establishing of relations is a sovereign right of each country. Turkey closed its borders with Armenia in a response to the occupation of Azerbaijani lands by Armenia. The decision was made in this context and it couldn’t be disaffirmed out of relevant context. We are sure that while the situation remains unchanged and the lands are under the occupation, the opening of the Turkish-Armenian borders will negatively impact not only Azerbaijan and solution to Nagorno Karabakh conflict, but whole South Caucasus as well," Azimov said. "It will deal a strong blow to international efforts to force Armenia to fulfill norms and principles of international law, to respect territorial integrity and inviolability of borders of Azerbaijan, to withdraw troops from Nagorno Karabakh and other occupied territories and to create necessary conditions for internally displaced persons to return home. We have witnessed in the past two months that the opening of borders stimulated Armenia’s non-constructive position in the peace talks. Even one statement by Turkey, Armenia and Switzerland on the prospects of Turkish-Armenian talks enabled Armenia to toughen its position in the negotiations with Azerbaijan. “We can surely say that opening of borders and starting of Turkish-Armenian economic cooperation will help Armenia to continue occupation. It will prevent


Azerbaijani people, including the Azerbaijani community of Nagorno Karabakh to return to their homeland”, Azimov said. The deputy minister said the normalization of Turkey-Armenia relations will not produce positive results for the region if Armenia does not withdraw its forces from the occupied Azerbaijani territories. “The reopening of Turkey-Armenia border can play an important role as an element of the settlement, in case the withdrawal of Armenian forces from the Azerbaijani territories and reopening of Lachin corridor for the use of all sides happen within the same time frame. After all this, Turkey, Armenia and Azerbaijan may have more favorable opportunities for economic cooperation. Such an approach, as a part of the settlement of the conflict, will be in line with the concept on reopening of all borders and communications in the region. Otherwise, peace and security will hardly be established in the region,” he said. Azimov said Azerbaijan will not review any economic cooperation with Armenia unless Armenian troops free Azerbaijan’s occupied territories, including Nagorno Karabakh. “If Armenia is ready to recognize Turkey’s territorial integrity, we also have a right to demand similar attitude towards other states of the region, including Azerbaijan,” he said. Economic /Energy Front


Russia still remains one of the major trade partners of Azerbaijan, and exports to Azerbaijan occupies a leading position with a percentage of 17.5 percent, said the trade representative of Russia in Azerbaijan Yuri Shedrin at the meeting of Azerbaijan-Russia Chamber of Business Cooperation on Oct 2. "Azerbaijan-Russia trade turnover continues to include a wide range of commodities," Shedrin said. "But the global financial crisis was the main reason for the reduction of indicators of Azerbaijan-Russia trade turnover since it affected the economies of both countries."According to statistical data of Russia, in January-August, the trade turnover between Russia and Azerbaijan fell 21.7 percent to $967.5 million compared to the same period of last year, he said. According to the statistics of Azerbaijan, the trade turnover between the countries amounted to 91 percent from last year's volume. Deputy Minister of Economic Development of Azerbaijan Niyazi Safarov said the crisis affected the trade turnover between the two countries, but at the moment it is important to use the potential, which is large enough."Efforts should be made to create stable and diversified relations between Russia and Azerbaijan," Safarov said. As noted at the meeting, the trade turnover between the countries began to grow, and there are plans to bring it up to $2 billion during the year. The agenda of the meeting included issues such as discussing the current situation and prospects of trade and economic cooperation between the two countries, measures taken in Azerbaijan in the field of state regulation of foreign economic activity, investment policies, including state-private partnership, forming a favorable environment for entrepreneurship. The agenda also included meeting of business circles of Azerbaijan and Russia, which will be held in the first half of 2010 in Moscow.


Partners on the implementation of the European pipeline project doubt in Iran's readiness to start exporting its gas through Nabucco. Hungary's Special Envoy for Nabucco Mihály Bayer said that "in principle" Nabucco may transport [...] Iranian gas, but the question is: May Iran transport its gas and if it has any power to become a gas supplier for this


project." Bayer said Iran faces the difficulties to meet gas demand in the domestic market, not mentioning the export. According to BP, in 2008 the Iranian gas consumption reached 117.6 billion cubic meters (per year) compared to 51.8 billion cubic meters in 1998. "Now, the situation in Iran is that the political situation does not allow international companies to participate in the development of the fields in this country," Bayer said at the Center for Strategic Studies under the Azerbaijani President in Baku on Oct.6. According to the Envoy, Azerbaijan and Iraq are expected to supply the first gas for the Nabucco pipeline. The Turkmen gas will be connected at the second stage. Azerbaijan will become an important partner for the EU and will always be a reliable gas supplier to Europe. The Nabucco project will bring significant benefits to Azerbaijan, Bayer added. The Nabucco project worth 7.9 billion euro will deliver Azerbaijani and Central Asian gas to the EU. Nabucco shareholders are the Austrian OMV, Hungarian MOL, Bulgarian Bulgargaz, Romanian Transgaz, Turkish Botas and German RWE with 16.67 percent each. Construction of the pipeline is expected to begin in 2011 and the first supplies - in 2014. Its maximum capacity will be 31 billion cubic meters per year. An investment solution on the project will be made in the first quarter of 2010. The Nabucco Gas Pipeline International will invest 30 percent of the project on basis of its share. The remaining 70 percent will be provided by international institutions.

• EBRD announces amount of investments in Azerbaijani economy in 2010 The European Bank for Reconstruction and Development (EBRD) plans to invest over $200 million in Azerbaijani economy in 2010, head of EBRD office in Azerbaijan Francis Daley said. "The bank plans to finance a large project in corporative sector and 10 projects in finance sector in 2010," Daley said. He said that about 50 percent of the bank's projects cover energy sector, 25 percent - financial, 9 percent is connected with banks, 6 percent - with micro-financial institutes, 3 percent - non-bank loan organizations and 5 percent - corporative sector. "This year the bank will invest over $200 million in Azerbaijani economy and the same amount is envisaged for 2010," Daley said. Presently, the bank's portfolio is $911 million. The bank invested about $114 million in realization of 19 Azerbaijani projects in 2008. EBRD implemented 90 projects in Azerbaijan by investing $1.5 billion given financing from other commercial banks.

• World crisis slightly affected Azerbaijan: CIS executive committee chief The plan of joint action to overcome consequences of the global financial and economic crisis is planned to be approved at the council of CIS participant countries' heads in Yalta on November 20, chairman of the CIS Executive Committee Sergey Lebedev said at II International Banking Conference of the Commonwealth of Independent States (CIS) "Enhancing the stability of the financial and banking systems of the Commonwealth" in Baku on Oct. 14. He said that preparation of the plan was result of three meetings of CIS finance ministers held in 2009. The Executive Committee also participated in preparation."We think that the plan will be effective instrument to overcome consequences of crisis," Lebedev said. The plan envisages specific proposals and signing of agreements regulating financial and banking relations and use of several countries' experience in other CIS countries. "Each country has good examples how to act during crisis. One of them is Azerbaijan which was slightly affected by crisis," Lebedev said. The plan envisages the agreement on legal regime of mutual admission to CIS countries' banking systems, regulation of currency control, common principles among the Central


Banks and measures in monetary policy. The working group of CIS experts is planned to be established to create mutual calculations in national currency in CIS.

• Azerbaijani, Uzbek Auditor Chambers sign cooperation agreement Head of the Azerbaijan Chamber of Auditors Vahid Novruzov and his Uzbek counterpart Ravshan Haydarov signed a cooperation agreement on Oct. 13. Speaking to the signing ceremony, the chief of the Azerbaijan Chamber of Auditors spoke of President Ilham Aliyev`s attention towards developing audit in the country. He also noted the Azerbaijan Chamber of Auditors signed 17 agreements and protocols of intentions with 13 foreign counterparts over the last 10 years. Novruzov said the two countries enjoy high level cooperation in various fields, including politics, economics and culture. He underlined “Uzbekistan has always supported Azerbaijan`s fair position on the settlement of Armenia-Azerbaijan conflict over Nagorno-Karabakh”.The Uzbek chairman stressed relations between Azerbaijan and Uzbekistan were “rapidly developing”. Haydarov also spoke of his organization`s activities.

• SOCAR, Gazprom sign gas deal On Oct. 14, the State Oil Company of Azerbaijan Republic (SOCAR) and Russia's Gazprom signed a medium-term contract to supply of Azerbaijani gas to Russia. From Azerbaijan, the contract was signed by SOCAR President Rovnag Abdullayev and from Russia by Gazprom CEO Aleksei Miller. The contract envisages supplying at least 500 million cubic meters of own gas of SOCAR per year beginning from 2010. Medium-term contract signed between SOCAR and Gazprom envisages prolongation as well, the head of Gazprom Alexei Miller said after signing the document in Baku. "That's why, we call it [contract] long-term," said Miller. During the signing ceremony, SOCAR President Rovnag Abdullayev said that signing the contract provides great opportunities to develop relations between Azerbaijan and Russia in this sphere, deepen cooperation both in their own markets and the markets of Europe and Asia. Abdullayev said the contract involves the sale of "any gas produced in Azerbaijan." "There are plans to transport 500 million cubic meters of gas in 2010, but "this figure could be higher," said Abdullayev. Azerbaijan has four directions of gas transport - Turkey, Georgia, Iran (swap), and after the signing of a contract between SOCAR and Gazprom today, SOCAR will be able to quickly export the excess volumes of gas to Russia, said Abdullayev. He said that gas exports to Russia will create a possibility for SOCAR to expand its own gas program, as well as develop gas infrastructure. "The cost of gas [for Gazprom] is determined on the basis of a formula that is available for SOCAR," said Abdullayev. Miller said the cooperation between the sides will contribute to the economic development of Azerbaijan. Social Front

• Only Caucasus Muslims Office to organize pilgrimage from Azerbaijan: Sheik-ul-Islam

The pilgrimage from Azerbaijan will be organized only by the Caucasus Muslims Office (CMO), Chairman of the CMO Sheik-ul-Islam Haji Allahshukur Pashazade told reporters. Those who applied to travel agencies will not make hajj to Mecca. "While it is not too late, the people should contact the CMO till Oct. 25," Pashazade added. About 1,400 people have already passed registration. A total of 600 pilgrims will travel to Hajj by air and 800 by buses. The quota for Azerbaijan is 2,000 pilgrims.


• Azerbaijani president sends a message to participants of VI Conference of Culture Ministers of Islamic countries

Azerbaijan is ready to continue efforts to promote intercultural dialogue, said the welcome letter from President Ilham Aliyev to the participants of VI Conference of Culture Ministers of the Organization of the Islamic Conference member states that began in Baku on Oct. 13. "Azerbaijani society is highly tolerant. We are ready to continue constructive dialogue, which is a tradition for Azerbaijan today,” the message says. The President noted that as Baku has been declared capital of Islamic culture in 2009, events at various levels are held here and the Head of State appreciates this conference as an event that promotes development in the cultural sphere. The message says "well-known fact of occupation of Azerbaijani territories by Armenia led to the destruction of mosques and other cultural and historical monuments in the occupied territories."The president expressed hope that the conference will identify ways of cultural cooperation among Islamic countries. In turn, ISESCO Secretary General Abdulaziz Othman Altwaijri appreciated the attention of the President of Azerbaijan to the conference and the activities of his organization as a whole. Noting that earlier the organization discussed program of development of cultural sphere for 2010-2012, he stressed strengthening of the tourism in the Organization of Islamic Conference member states. "This sphere is maintained by the governments of our countries. We will take a strategy for tourism development,” Altwaijri said. He is convinced that cooperation between countries in the cultural sector will provide an impetus for economic development. Kazakhstan Political Front

• Kazakh Opposition Parties Announce Merger ALMATY -- The leaders of two major opposition parties in Kazakhstan have announced a merger between their parties, RFE/RL's Kazakh Service reports. Azat party leader Bolat Abilov and Social Democratic Party chairman Zharmakhan Tuyaqbay said at press conference in Almaty that the new united opposition party will be called the All-National Social Democratic Azat Party. They said the founding congress of the new party will be held in Almaty on October 24. The two parties merged in 2007 but decided to split later the same year after they failed to win seats in parliament.

• Kazakhs not yet ready to see Nazarbayev president for life – poll Around 42% of Kazakh citizens interviewed as part of a recent survey have named President Nursultan Nazarbayev their nation's leader. "Kazakh citizens of all ethnicities, genders and age groups view Nazarbayev as their leader," said Gulmira Ileulova, director of the Strategy center of social and political studies. The results of the poll were published in the Liter newspaper on Wednesday. Thirty-two percent of respondents said they regard Nazarbayev as "the founder of their state", and over 30% as "an international-level leader". A total of 23.4% of those polled referred to Nazarbayev simply as Kazakhstan's "first president", 17% as "a democrat", and about 10% as "a reformer". The idea of making Nazarbayev Kazakhstan's president for life has drawn a mixed reaction from the country's citizens. Depending on the republic's region, this initiative received support from 20.7% to 63% of respondents. Forty percent of those polled were undecided.

• United opposition has chances to get into parliament – experts


Almaty. October 15. Interfax-Kazakhstan – The Kazakh political analysts are actively discussing the merger of the two opposition parties and believe that the united opposition has all chances to get into the parliament . As reported, on October 13 the National Social and Democratic Party (NSDP) and the Azat Party (Freedom) announced their intent to merge. The leader of NSDP called on the other opposition parties to join the new organization. The Kazakh President’s Political Advisor Yermukhamet Yertysbayev believes that NSDP Azat may win about 11-12% of the votes in the parliamentary elections. “If the other opposition parties, such as the unregistered Alga! Party, the two communist parties with all their resources and electorate, join the united party they will form a real force, which may win as much as 20% of the votes,” he told in an interview with the weekly Svoboda Slova published on Thursday. In this case, he thinks, Kazakhstan will have a two-party parliament. “A two-party parliament is a cherished dream of the president. He has visited a lot of countries, got familiarized with their political systems and arrived at a conclusion that a two-party parliament is very efficient,” Mr Yertysbayev said. According to him, the central authorities would very much like to have a two-party parliament. “Everything depends on the opposition parties. We can’t do their work for them,” he said. The president’s political advisor is sure that the united opposition will not be able to become a real rival for the ruling party Nur Otan. The director of the Risk Assessment Group, Dosym Satpayev, reckons that “the merger of the opposition parties at a time of economic crisis should give an impetus to the consolidation of the protest electorate.” He believes that the united opposition party may win about 30-40% of the votes, provided that the elections are fair and impartial. “Here is another question: will the state authorities allow a hooligan to join the noble family of the Nur Otan parliament? Of course, the president may be talking about the necessity of creating a two-party parliament. However, given the existing political technologies the parliament may be turned into a two-party one without the opposition. Here our state authorities are consistently unpredictable,” Mr Satpayev summed up. Nikolai Kuzmin, a political analyst, also thinks that fair elections would enable the united opposition “to compete with the ruling party as the community always needs alternative options.” He expressed a hope that the unregistered Alga! Party and the Communist Party of Kazakhstan would support NSDP Azat and that the united party would become a strong rival for the Nur Otan Party. However, he doubts that the state authorities will let the opposition parties enter the parliament. “I am sure that today the parliament will not let in anyone from outside,” Mr Kuzmin said. In case of parliamentary elections, he thinks, the Nur Otan Party will get about 50% of the votes. “The other 50% will be split between the parties which will run for the parliament and the united opposition, in my opinion, may win 20-30% of the votes,” he reckons. In Kazakhstan, the population of which is about 16 million people, there are 10 political parties and half of them are in opposition. The Nur Otan Party led by Kazakh President Nursultan Nazarbayev won all 98 seats in the Majilis (the lower chamber of the Kazakh parliament) in 2007. In September last year Nursultan Nazarbayev said that there would not be early parliamentary elections but only in 2012 as required by the law. However, the opposition think that there will be early parliament elections in connection with Kazakhstan’s forthcoming chairmanship in OSCE next year, the main argument being that the one-party parliament of the Republic of Kazakhstan will hardly help improve the image of the country.


Geo Strategic Front • Kazakh delegation departs for Athens to participate in OSCE Parliamentary

Assembly Fall Meetings Kazakh delegation led by the Senate Speaker Kasymzhomart Tokayev departed for Athens on Thursday to take part in OSCE Parliamentary Assembly Fall Meetings to discuss “Energy Security and Environment from 9 to 12 October. In three focused sessions, the parliamentary conference will address Regional Co-operation in Energy Security; Climate and Environmental Policy – the Road to Copenhagen; and Optimal Utilization of Natural Resources for Human Security. Tokayev will be delivering a speech at the third session on Saturday. The Fall Meetings also include a Mediterranean Forum, which will consider prospects and challenges for the OSCE Mediterranean dimension, as well as a meeting of the Assembly’s Standing Committee. OSCE PA President Joao Soares will be closing the OSCE Parliamentary Assembly Fall Meetings Tokayev is expected to have talks with Carlos Papoulias, President of Greece, President of the Greek Parliament, Dimitrios G. Sioufas. Greece has been chairing the OSCE since 2009.

• Kazakh president expected at Global Nuclear Security Summit in Washington Kazakhstan president Nursultan Nazarbayev is expected to take part in the Global Nuclear Security Summit in the USA in spring 2010. The issue of preparing Nazarbayev’s participation in the summit was discussed by Kazakhstan's Secretary of State and Foreign Minister, Kanat Saudabayev, and U.S. Deputy Secretary of Energy Daniel B. Poneman on Wednesday in Astana. "Talking about the cooperation in the energy sector, the sides were pleased to confirm positive dynamics and a huge potential in developing alternative energy sources,” Kazakh Foreign Affairs Ministry says. Saudabayev met with Swiss Foreign Minister Micheline Calmy-Rey to discuss prospects of bilateral cooperation, review the status of the joint legal basis, collaboration within the world organizations and exchange opinions on the situation in Central Asia. Economic /Energy Front

• OSCE organizes workshop in Kazakhstan on oil spills response Experts from countries on the Caspian Sea shore, international organizations, private sector and civil society will discuss how to best deal with oil spills during an OSCE workshop that starts in Atyrau, western Kazakhstan, today. Oil and gas. Wood Mackenzie says Kazakhstan Pipeline Decisions Imperative to Secure expanded Oil Production."This workshop aims to help countries around the Caspian co-operate in their responses to oil spills," said Marc Baltes, Senior Adviser in the OSCE Office for Economic and Environmental Activities. The three-day event is organized by the OSCE Centre in Astana, the Office of the Co-ordinator of OSCE Economic and Environmental Activities and Kazakhstan's Ministry of Emergency Situations with financial support from Finland. The workshop aims to identify key areas related to oil spill preparedness, response and co-operation to strengthen Caspian countries' national response systems and to help them interact within the regional framework for the Caspian Sea. "The Caspian Sea is an ecologically sensitive area and its enviornmental security is under threat due to the expansion of oil drilling operations," said Nurslyam Dusekenov, Deputy Chair of Committee on State Control for Emergency Situations and Industrial Safety of the


Ministry of Emergency Situations. "Therefore, we have to pay close attention to oil-spill response mechanisms, and we must use reliable equipment and technologies, reduce man-caused pollution of the marine ecosystem and enforce the legislative base to ensure Caspian Sea security." The workshop follows earlier OSCE work to help the Caspian region deal with oil spills conducted following the 2008 OSCE Economic and Environmental Forum that focused on maritime waterways.

• Halyk Bank places 67.5 million common shares Almaty. October 9. Interfax-Kazakhstan – Kazakhstan-based Halyk Bank is placing 67,533,545 authorized but unplaced common shares (the Shares), the bank says in a statement. “The Shares were authorized by an Extraordinary General Shareholders Meeting of the Bank on 19 December 2008 pursuant to the Memorandum of Understanding signed among the Government of Kazakhstan, the Agency for Regulation and Supervision of Financial Market and Financial Organizations, the National Bank of Kazakhstan, JSC Sovereign Wealth Fund Samruk-Kazyna ("Samruk-Kazyna"), JSC Holding Group ALMEX, and the Bank on 1 December 2008,” the statement says. The Shares were offered for purchase on a pre-emptive basis to existing shareholders, including holders of global depository receipts representing the bank's common shares (GDRs), as part of the global offering of 326,673,000 common shares (equivalent to 81,668,250 GDRs) (Global Offer) from 20 February to 24 March 2009 (the Pre-emption Period) at a price of KZT 102.02 per share (equivalent to USD 2.75 per GDR at the then current exchange rate), according to the bank. After the Pre-emption Period, 259,064,909 common shares (equivalent to 64,766,227 GDRs) from the Global Offer were placed with Samruk-Kazyna at a price of KZT 104.03 per share (equivalent to USD 2.75 per GDR at the then current exchange rate) (the "Placement Price") for a total consideration of KZT 26.9 billion. “The Shares represent authorized but unplaced common shares from the Global Offer which the existing shareholders, including holders of GDRs, waived their rights to purchase on a pre-emptive basis during the Pre-emption Period,” the bank says. As part of the Bank's capitalization program launched at the beginning of 2009 the Shares will be placed at the Placement Price in Kazakhstan in accordance with the legislation of the Republic of Kazakhstan and the internal procedures of the Bank. The placement of the Shares will complete the 2009 capitalization program for the Bank and will also satisfy the requirements of Kazakhstan law with regard to authorized but unplaced shares. As at September 1, 2009 the number of placed common shares was 1,239,159,502, of placed preference shares 390,084,652. The major shareholder of Halyk Bank is JSC Holding Group Almex, which owns 41.35% of the common and preference shares, and the National Welfare Fund Samruk-Kazyna, which holds a 27.85% stake. In 2008 Halyk Bank was ranked 15th by assets among the CIS banks and 3rd among the Kazakh banks according to the Interfax-1000: CIS Banks ranking prepared by the Interfax Center of Economic Analysis.

• Areva and Kazatomprom established joint venture Àstana. October 6. Interfax-Kazakhstan - French Areva and Kazakhstan’s national nuclear company Kazatomprom has established a joint venture for fuel marketing, Integrated Fuel Asia Star (IFASTAR). Areva chief executive officer Anna Lauvergeon and Kazatomprom president Vladimir Shkolnik signed the agreement on Tuesday in Astana. Under the terms of the agreement, the newly created Paris-based IFASTAR will be owned jointly by Areva (51%) and Kazatomprom (49%). "This agreement follows the


signature of a Framework Agreement in September 2009, and reinforce the partnership between both companies in the front-end cycle. It confirms AREVA and Kazatomprom strategy to develop their positions in Asia, producing together the most important uranium production in the world: almost 30% produced in 2008 came from both companies,” according to a joint press release. “The mission of IFASTAR is to perform a Feasibility Study consisting of two parts: The assessment of the Asian market in view of selling integrated fuel packages (including all front-end segments and combining Kazatomprom’s uranium resources and AREVA’s fuel technology) to electric utilities operating in Asia. The assessment of the technical and economical feasibility of the construction of a dedicated fuel manufacturing line (400 tU/year) located at Kazatomprom‘s Ulba Metallurgical Plant (UMP) site in Ust-Kamenogorsk (Kazakhstan),” reads the press release. Depending on the results of the assessment, and after decision of the partners, IFASTAR would run the sales of the products from this line while the fuel manufacturing itself would be performed by another joint venture, owned jointly by KAZATOMPROM (51%) and Areva (49%). Kazatomprom President Vladimir Shkolnik told the journalists that the dedicated fuel manufacturing line would produce fuel assemblies for the Areva-made reactors. “The value of the project is about $100 million. The feasibility study will be completed in six months and then the design will be prepared,” Vladimir Shkolnik said. “The fuel manufacturing line will be able to produce fuel for at least 20 reactors,” he said. The building, which will house the line, will be designed and constructed so that the manufacturing capacity can be increased in the future, Shkolnik added. According to the head of Kazatomprom the partners will be investing in the project proportionally to their holdings in the JV. Areva is a global largest manufacturer of equipment for the nuclear power stations. The company also produces enriched uranium. Kazatomprom is the national operator of the Republic of Kazakhstan for export of uranium and its compounds, rare metals, nuclear fuel for nuclear power plants, special equipment, technologies and double-use materials. The main activities of the company are: geological exploration, uranium production, manufacture of nuclear fuel cycle products, reactor construction, nuclear power plants, non-ferrous metallurgy and production of construction materials, electric energy sector, science, social welfare and staff training. Kazatomprom is among the leading uranium production companies of the world.

• Kazakhstan invites France to invest $6.5 billion in power generation sector Astana. October 6. Interfax-Kazakhstan – Power generating facilities in Kazakhstan require $6.5 billion in investments, managing director of Samruk-Kazyna, Aidan Karibzhanov, said inviting the French companies to join the power generating projects in Kazakhstan."In order to meet the rising demand for electricity, Kazakhstan needs new generating facilities and modernization of the operating ones. Kazakhstan needs to raise nearly $6.5 billion in investments for those projects," Karibzhanov, said at the Kazakhstan and France business forum in Astana on Tuesday. Karibzhanov addressed the potential business partners in French. "We see big prospects for cooperation in this sector, moreover Samruk-Kazyna has the operating facilities, sufficient resources and affiliates such as Samruk-Energy and KEGOC,” Karibzhanov said at the business forum.


He also said that the Kazakh government has made a few steps towards liberalization of the local market and creating favorable conditions for investors. He also named a few competitive advantages Kazakhstan enjoys in the power generation sector: an access to energy resources due to abundance of coal, oil and gas and the availability of sufficient renewable energy sources.

• Kazakhstan, USA sign joint action plan in energy sphere Kazakhstan and the United States have signed the joint action plan in energy sector during the session of joint Kazakh-USA energy partnership commission on Thursday. According to the joint statement of the commission, the joint action plan outlines cooperation of two countries in sphere of nuclear security, atomic energy, oil and gas, renewable energy, energy efficiency and electric energy. " In sphere of nuclear security and atomic energy countries are willing to cooperate on the prevention of the danger of the nuclear weapon proliferation, provision of physical security of sensitive nuclear materials, minimization the usage of highly enriched uranium, prevention of illegal transportation of nuclear materials, strengthening of the control over the export of nuclear materials and implementation of international regimes of guaranties," said in the joint statement."We will exchange the experience between our national laboratories and scientific organizations, which would boost development of commercial and nuclear technologies in Kazakhstan," said in the document. According to the statement, cooperation in oil and gas sphere will include development of the partnership among Kazakh international companies in exploration, development and transportation of hydrocarbon resources of the republic. "We agreed to foster joint efforts aimed to increase world energy supply and support of the willingness of Kazakhstan to find alternative ways of delivery of energy resources to international markets," said in the document. Social Front

• Kazakh Police Search Jewelry Firm On Smuggling Suspicions ASTANA -- Kazakh financial police have searched the offices and shops of the Altyn Jewelry company, RFE/RL's Kazakh Service reports. Murat Zhumabay, a spokesman for the financial police, told journalists in Astana that all of Altyn's shops and offices in Kazakhstan are being searched because the company is suspected of jewel smuggling. The Altyn Holding Company was established in 1990 and has jewelry factories and gold vendors in Kazakhstan, Kyrgyzstan, Russia, Turkey, China, and the United Arab Emirates. Its stores are known for selling jewelry at discount prices. Russia's Federal Security Service (FSB) launched investigations into Altyn's activities last week. Its offices in Moscow, St. Petersburg, Novosibirsk, and Omsk were searched by police, their employees interrogated, and several of its top managers were arrested. Deported Kazakh’s Relatives Concerned About His Whereabouts

• Margulan Mukhambetov, pictured at a refugee camp in the Czech Republic Relatives of a Kazakh man deported from the Czech Republic to Kazakhstan over the weekend are concerned about his whereabouts, RFE/RL's Kazakh Service reports. Czech authorities brought Margulan Mukhambetov, 26, to Almaty by plane and handed him to Kazakh border guards at the airport in Almaty on October 12. Mukhambetov is originally from Atyrau in western Kazakhstan. His mother, Kalima Mukhambetova, told RFE/RL that her son has not contacted her yet. She said she is very concerned about his safety. Margulan's brother, Erkulaban, says that he was living outside of Kazakhstan for many


years and therefore has no friends or relatives in Almaty with whom he could stay. The deported man is one of some 200 Kazakhs who have been trying to receive asylum in the Czech Republic since 2006. They say they are followers of the "pure faith" branch of Islam, also known as Salafism. The group in the Czech Republic says its members will face persecution if they are returned to Kazakhstan. Czech authorities are hesitant to give them refugee status, saying that Kazakhstan will chair the Organization for Security and Cooperation in Europe (OSCE) soon and, as such, the country would not persecute its citizens for their religious views. Mukhambetov was the first Kazakh asylum seeker deported to Kazakhstan.

• Regional TV Director Alleges Kazakh Pressure PRAGUE -- The director of a Central Asian satellite TV channel says Kazakh authorities began pressuring his company after it interviewed a former presidential son-in-law who'd fallen out of favor with President Nursultan Nazarbaev, RFE/RL's Kazakh Service reports. Bakhytzhan Ketebaev heads the "K+" television company, which broadcasts news about Central Asia. During a visit to Prague, Ketebaev told RFE/RL that he thinks recent Kazakh government pressure on K+ stems from a series of interviews with Rakhat Aliev, Nazarbaev's former son-in-law, who also served as Kazakh ambassador to Austria. Ketebaev said Aliev's case made "many rich Kazakhs" realize the dangers of the current political system in Kazakhstan, which "protects neither rich nor poor, but one particular person in the government." Ketebaev claimed that some people within Nazarbaev's policy-making circles want to establish the rule of law supported by a free media and an independent judiciary. Ketebaev -- a former director of the independent Kazakh television and radio broadcasting company Tan -- added that Nazarbaev's government would be surprised to find out who sponsors his channel and how freedom of expression is developing in Central Asia. In 2002, Tan was sold to a pro-governmental media holding company and turned into an entertainment channel. Ketebaev established K+, which combines Internet and satellite broadcasting, in 2007. Aliev has lived in Austrian exile since 2007, when investigations were launched into his alleged involvement in the kidnapping of two bank managers in Almaty. In 2008, he was tried in absentia by a Kazakh court and sentenced to 40 years in jail for kidnapping, extortion, and treason.

• Kazakhs parliament concerned with long working hours of Kazakh state officials Astana. October 14. Interfax-Kazakhstan – Majilis members, Zhakip Asanov and Bakhyt Syzdykova expressed their deep concern with the lifestyle and work environment of Kazakh state officials. Presenting the letter to the Prime Minister at the Majilis on Wednesday, Asanov compared the working schedules of three young office employees who work for the Kazakh Ministry of Economy, Shell office in Astana and a state service establishment in Beijing. "An employee of the Energy Ministry stays in office from 9 a.m to 9 p.m and sometimes works extra hours until midnight. Such working schedule is unlikely to allow for any gym exercises, as a young man lacks both time and stamina. Paying for the gym seems an impossible task either, as the clerk spends half of its monthly salary at the Ministry’s canteen,” Asanov said. At the same time a Shell employee, the Majilis member said, leaves the office at 6 p.m sharp and can afford to go to a gym, due to a prepaid annul membership fee provided by the company.


"A Chinese state official works in office from 8 a.m. till 5 p.m and twice a day has a 10-minute break for invigorating exercises in a conference hall with his collogues,” Asanov said. A sedentary lifestyle contributes to cardiovascular disease, diabetes and high blood pressure, he said, while asking the Prime Minister “to find ways to ensure a healthier life style” for 10,000 of Astana state officials. Kyrgyzstan Political Front

• At least 12 Hizb ut-Tahrir members detained in Kyrgyzstan At least 12 active members of the extremist organization Hizb ut-Tahrir have been detained in course of the joint operation of the National Security Committee and the Interior Ministry in Kyrgyzstan. A computer, copy machines, large number of electronic media, religious literature and booklets have been confiscated from the activists. Security officers have also terminated activity of an illegal printing office of the organization. At least eight criminal cases have been initiated on Public calls to forced change of the constitutional order, Article 297 and Fueling of national, racial, religious and interregional conflicts, Article 299 of the Kyrgyz Criminal Code. At least eight of the detained have been charged and taken prisoners, while the others have been officially cautioned.

• MP: Political persecutions could end up with religious opposition Continuing political persecutions could result in establishment of a religious opposition in five years in Kyrgyzstan, Roza Otunbaeva, a parliament member from the Social Democratic fraction told reporters in Bishkek, Tuesday. The authority creates conditions for dissolution of the Kyrgyz parliament. “There is no doubt that SDPK fraction grows weaker and social democrats get all the blows. Nevertheless, the Kyrgyz opposition will survive,” Otunbaeva said. “A multiparty parliament in Kyrgyzstan is a total fiction. In fact, none of the parties, except Ak-Zhol, has seats in the parliament. All chairmen and their assistants are from the governing party. We are not going to vacate our seats, as it is the easiest way out of the situation. We have an aim to strive for,” the parliament member said. Geo Strategic Front

• Kyrgyz PM flies to China for SCO summit The Prime Minister of Kyrgyzstan has left for China to take part in summit of the Shanghai Cooperation Organization’s Heads of Government Council to run in Beijing. In course of his official visit Igor Chudinov plans to meet with Hu Jintao, the Chairman of China, Wen Jiabao, the Premier of the State Council and Wu Bangguo, Chairman of the Standing Committee of the National People’s Congress.

• Kyrgyzstan to host next SCO Council meeting Next meeting of the Shanghai Cooperation Organization Council of Heads of Government will take place in Kyrgyzstan in 2010, the Prime Minister Igor Chudinov said in Beijing Wednsday. “I will be glad to welcome all participants of the current session on the hospitable Kyrgyz land in 2010. The Shanghai Cooperation Organization unites countries with huge economic, natural and human potential, large and prospective markets. Membership in the SCO gives its members good opportunities for mutually profitable cooperation and strengthening of its authority in the world. Usage of available opportunities and competitive benefits of the SCO is our main task and an important step in joint counteraction to the world financial and economic crisis effects,” Chudinov said.


• Kyrgyz, Kazakh premiers to talk security at SCO Council meeting Prime Ministers of Kyrgyzstan and Kazakhstan will hold bilateral discussion over energy security. Igor Chudinov and Karim Masimov will meet in Beijing later Wednesday after official meetings of the SCO Heads of Governments Council. Kyrgyzstan and Kazakhstan consider parallel operation of both republics’ energy systems with regard to Uzbekistan’s step-out form the unified system, prospects for water consumption and energy security cooperation.

• CSTO: Russia to establish united military base in Kyrgyzstan A military base to unite all Russian military objects in Kyrgyzstan, including Kant airbase, will be established in the republic, Nikolai Bordyuzha, Secretary General for the Collective Security Treaty Organization told Russian mass media on October 14. “Memorandum signed between the Kyrgyz and Russian presidents provides for establishment of a single united airbase of the Russian Armed Forces to unite all the units, including the military base in Kant,” mass media quoted as Bordyzha said. Regulations for the base presence in the republic will be worked out in the nearest future, while duration of its deployment comes to 49 years, the memorandum details. “Besides, the document provides for possible establishment of educational training center in Kyrgyzstan,” the CSTO secretary general added. Economic /Energy Front

• Kyrgyzstan’s tax debt hits 1,293bln State Committee for Taxes and Dues said Monday the tax payable has hit 1,293 billion soms in Kyrgyzstan. As of January 1, 2009 the amount made up to 3,487 billion soms. “Territorial administrations of the State Committee for Taxes and Dues carried out work on collection and reduction of entrepreneurs’ tax debts in January-September 2009. So, the debt reduced by 2,193 billion soms for the period,” the committee reported.

• Kyrgyzstan faring well in economic crisis, IMF says Kyrgyzstan, Tajikistan and Georgia are reportedly faring better in the global recession than other Central Asian countries, Regional economic outlook: Middle East and Central Asia-2009, by the International Monetary Fund said. The global crisis has severely impacted the Caucasus and Central Asia (CCA), with growth for the region projected to drop from 6.6 percent in 2008 to 1.5 percent in 2009. Most CCA energy exporters are projected to record solid growth in 2009, given limited linkages to international markets, long-term energy export contracts, and supportive policies. The energy importers, however, are facing a marked slowdown in growth and deteriorating living standards as a result of a sharp drop in remittances from Russia. A modest recovery for the region as a whole is expected in 2010. Kazakhstan, however, is in the midst of a banking crisis and is likely to see negative growth of about 2 percent in 2009. With global energy demand increasing again, the energy exporters should continue to see solid growth rates in 2010. CCA energy importers are being hit to varying degrees. The recovery in 2010 is projected to be slow and gradual. “Policymakers have responded to the downturn by easing fiscal and monetary policies and strengthening social safety nets. In the energy importers, where governments have little space to implement such measures, donors, including the neighboring states of Russia and China,” the IMF experts said. In 2010, where possible, fiscal policy should continue to be supportive of growth and prioritize social protection. Additional donor support on concessional terms will be needed for the energy importers to prevent a buildup of unsustainable debt levels. The


energy exporters should use part of their anticipated increase in revenue from rising energy prices to push ahead with structural reforms.

• Kyrgyzstan pays out $3.5M of its gas debt to Uzbekistan Kyrgyzstan has paid out $3.5 million of its gas debt to Uzbekistan, Kyrgyzgas company informed the news agency 24.kg Monday. Other $2 million will be reportedly transferred to Uzbekistan this week. Salamat Aitikeev, the Director General of Kyrgyzgas will leave for Tashkent on October 13 to resume talks over gas supply to Kyrgyzstan in 2010. Exclusively of the repaid sum, Kyrgyzstan’s gas debt amounts to $15.5 million.

• Kyrgyz PM, Chinese Railways Minister to discuss construction of China-Europe railway

Igor Chudinov the Prime Minister of Kyrgyzstan and Liu Zhijun the Railways Minister of China will discuss construction of China-Europe railway in Beijing later Wednesday. Possible construction of the railway from China through Kyrgyzstan to Europe has been discussed for the past ten years. The project seems to be profitable as for China, Kyrgyzstan so for other countries. Previously, Akylbek Japarov, the Economic Development and Trade Minister of Kyrgyzstan outlined that construction of the railway could be financed by the Shanghai Cooperation Organization. The parties will supposedly proceed to building of the railway in the nearest future.

• Uzbekistan resumes full gas supply to Kyrgyzstan Uzbekistan resumes full gas supply to all regions of Kyrgyzstan, director of the Kyrgyzgas Company Salamat Aitikeev told 24.kg Thursday morning. Aitikeev left for Tashkent Wednesday to bargain with the neighbors about possible continuation of gas relations between the two countries. Earlier, official Tashkent had refused any talks with Kyrgyzstan and cut off supplies to the South Kyrgyzstan. As of October 14 2009, Kyrgyzstan paid off only $4.6 million of its $19 million debt, but Aitikeev reportedly persuaded the Uzbeks to resume gas supply to Kyrgyzstan and lift all the restrictions.

• Uzbekistan demands Kyrgyz PM to sign gas debt repayment schedule Uzbekistan to resume gas supply to Kyrgyzstan only on a condition that the Prime Minister, Igor Chudinov, signs a debt repayment schedule, informal sources in government informed 24.kg. Friday. Kyrgyzstan reportedly has the means to pay the debt off. However, the Uzbeks set a number of impossible conditions. Therefore, the Prime Minister has no say in the matter of a commercial entity and can not sign a debt repayment schedule. Uzbek authorities recommend repaying the debt by means of a Russian loan or Kazakhstan’s electricity fee. Kyrgyzstan, in turn, does not agree to such terms as that would break other international obligations.

• Kyrgyz MPs endorse draft agreement on renting pasture areas to Tajikistan DUSHANBE, October 13, 2009, Asia-Plus -- On Tuesday October 13, the Zhogorku Kenesh (Kyrgyzstan’s parliament) Committee on Regional Development and Local Government considered and endorsed a draft agreement on renting pasture areas in the Batken region to Tajikistan, Kyrgyzstan’s news agency AKIPress reported. Under this document, Kyrgyzstan rents 17,800 hectares of summer-autumn pastures on the territories of the Batken and Leilek districts of the Batken region to Tajikistan. Speaking at the meeting, the Minister of Agriculture Iskenderbek Aydaraliyev noted that regional administrations of the Batken, Osh and Jalal-Abad regions proposed to rent the pasture areas to Tajikistan for the period of one year. Under the agreement, the cost for one conventional animal – sheep – is US$3.00 per year and a total pasture rental is 267,000


U.S. dollars, the minister said. It is possible to extend a rent term with reviewing the rental, Aydaraliyev noted. Social Front

• Kyrgyz Supporters Of Jailed Kazakh Rights Activist Get Warning BISHKEK -- Three Kyrgyz activists have been detained for supporting jailed Kazakh human rights activist Yevgeny Zhovtis, RFE/RL's Kyrgyz Service reports. Sardar Bagishbekov of the Voice of Liberty Foundation, Nadira Eshamtova of the Youth Rights Group, and Almaz Esengeldiev of the Human Rights Defenders Council organized a protest in front the Kazakh Embassy in Bishkek, demanding Zhovtis's immediate release. Zhovtis, the head of Kazakhstan's Bureau for Human Rights, was sentenced to four years in jail for his role in a deadly traffic accident last month. His colleagues consider his case to be politically motivated and Western organizations and governments have called for his case to be reviewed. The verdict in his case has been appealed. The three Kyrgyz activists were detained in front of the Kazakh Embassy and brought to Bishkek's Lenin District police department. They told RFE/RL they were warned about holding an "unsanctioned protest action" and later released.

• Pension’s insurance component to increase by 15 percent in 2010 It is planned to increase insurance component of pensions by 15 percent in Kyrgyzstan starting from March 1, 2010, Tajikan Kalimbetova, Chairwoman of the Social Fund said at the Migration, Labor, Social Policy and Health Care Committee’s session on Monday. “As for basic component of pension, it is traditionally raised at the beginning of each year,” Kalimbetova added. The chairwoman pointed, if electricity tariffs were to grow in 2010, the retirement benefits would increase consequently12/10-2009 16:05, Bishkek – News Agency “24.kg”, By Aizada KUTUEVA It is planned to increase insurance component of pensions by 15 percent in Kyrgyzstan starting from March 1, 2010, Tajikan Kalimbetova, Chairwoman of the Social Fund said at the Migration, Labor, Social Policy and Health Care Committee’s session on Monday. “As for basic component of pension, it is traditionally raised at the beginning of each year,” Kalimbetova added. The chairwoman pointed, if electricity tariffs were to grow in 2010, the retirement benefits would increase consequently

• Rightists nabbed near Kazakh Embassy in Bishkek A group of local human rights activists was held near the Kazakh Embassy in Bishkek, Monday morning. “Sardar Bagishbekov, Nadira Eshmatova and Almaz Esengeldiev were reportedly getting ready to stage a picket in support of a known human rights advocate – Eugeny Zhovtis, when were detained by the Lenin district police officers and took to the department for questioning,” one of the activists informed 24.kg on the phone. The situation is developing.

• Kyrgyzstan raises family income supplements Kyrgyz government will raise family income supplements for unemployed citizens with no right for retirement benefits from 200 to 240 soms, press service of the Kyrgyz Finance Ministry reported. Today the guaranteed consumption level of Kyrgyzstan is a social minimum calculated out of the state budget in view of the current economical situation. The previous raise of the family income supplement occurred in 2008, when the amount was raised from 175 to 200 soms.

• Bishkek to hold anti-global warming campaign


Peaceful ecologic anti-global warming campaign with a symbolic name "350" will be held at the central Ala-Too Square in Bishkek on October 24, organizers of the event told the news agency 24.kg. Timed to the International Day of Climate Action, the campaign will include exhibition of decorative trash bins, screening of The Age of Stupid film. Environmental specialists plan to inlay with apples the inscription 350 at the National Historical Museum for a photo to be placed at www.350.org website. Tajikistan Political Front


KHUJAND, October 14, 2009, Asia-Plus -- On Wednesday October 14, representatives of political parties and public associations functioning in the Sughd province gathered in Khujand to discuss ways how to make the parliamentary elections due in February 2010 more democratic. The meeting brought together senior representatives from local authorities and 50 representatives from organizations of political parties in the province and public associations functioning here. Mr. Frank Johansen, Political Officer, OSCE Office in Tajikistan, also attended the meeting. Issues related to a role of political parties in the parliamentary elections and improvement of election mechanisms were among major topics of the meeting. Ghufron Rustamov, the head of the organization of the Communist Party (CPT) for Sughd, noted that candidates of political parties should seriously prepare themselves for work with parliament. The deputy head of the Islamic Revival Party (IRPT) for Sughd Mirzoqul Hojimatov raised the issue of criticism and perception of it. “If we criticize something, it does not mean that we are enemies of people,” said Hojimatov, “We just want our country and our people to live better.” The chairperson of the organization of the Social-Democratic Party (SDPT), Ms. Dilbar Samadova, noted that during the previous parliamentary elections their party had had problems with access to the final protocol of the elections. “At some polling stations, we had been feeling pressure of administrative levers,” Ms. Samadova said, noting all political parties should have equal access to media, including the state-run ones.

• Parliament passes new criminal procedural code DUSHANBE, October 14, 2009, Asia-Plus -- Deputies of the Majlisi Namoyandagon (Tajikistan’s lower chamber of parliament) have endorsed a draft law on adoption of a new criminal-procedural code of the country. A regular sitting of the sixth session of the Majlisi Namoyandagon of the third convocation, presided over by its speaker, Saydullo Khairulloyev, was held o October 14. Presenting the bill, Minister of Justice Bakhtiyor Khudoyorov noted that the new criminal-procedural code provided for raising a role of judicial system in protecting constitutional rights of citizens. The minister stressed that “international conventions on human rights ratified by Tajikistan’s and the country’s Constitution “bind us to adopt this law.”Under the new criminal-procedural code, warrants for house arrest, sequestration, bank account attachment and telephone tapping will be issued by courts. Speaking at the meeting, MP Shodi Shabdolov said that the law was of crucial significance for the country and called on parliamentarians and media to take adequate measures to explain its essence to the public. MP Yusufjon Ahmadov also underlined the significance of the law, noting that it was one the most important laws adopted by the parliament over the past ten years. Parliamentarians unanimously approved the bill that will be sent for consideration to the upper house of the parliament.


We will recall that the current criminal-procedural code was adopted in 1961 already. If the upper house of the parliament seconds the law, the new criminal-procedural code will come into effect on April 1, 2010. Geo Strategic Front

• CIS summit in Chisinau ends with signing of documents, chairmanship transfer DUSHANBE, October 10, 2009, Asia-Plus -- The CIS summit in the Moldavian capital Chisinau ended with the signing of several documents and the CIS chairmanship transfer from Moldova to Russia. According to Russia’s Itar-Tass, CIS Executive Committee Chairman Sergey Lebedev said, “A key document signed by delegation heads is a joint action plan of anti-crisis measures presented by Russian Vice-Premier and Finance Minister Aleksey Kudrin.” The chiefs of state also decided the pronounce 2010 the Year of Veterans and to prepare for celebrations of the 65th anniversary of VE-Day. In all, 22 documents were summit at the Chisinau summit. “The signed documents aim to enlarge multifaceted cooperation in the CIS and to promote practical results of the decisions made in the economy, migration, energy and other spheres,” Lebedev said. The CIS leaders agreed to deepen humanitarian integration and security cooperation and to continue optimization of CIS activity. They approved additional measures for strengthening border security and signed some other documents. Prime Minister Oqil Oqilov represented Tajikistan at the CIS summit that was held in Chisinau on October 9. We will recall that the leaders of Kazakhstan, Turkmenistan and Uzbekistan have also sent their regrets and these countries will be represented by lower-level delegations. In the meantime, the October 9 October "RFE/RL News" article “Russia Facing Resistance with Allies on CIS’s Southern Flank” by Bruce Pannier noted that Russia's relations with the three states that make up the southern flank of the Commonwealth Of Independent States -- Uzbekistan, Tajikistan, and Turkmenistan -- have suffered severe setbacks of late. Uzbekistan has annoyed the Kremlin by scaling back its participation in Russian-led security organizations, and by passing a customs law that promises to heavily tax Russian companies involved in production-sharing agreements that deal with the export of Uzbek natural gas. According to the article, Tajikistan allegedly wants Russia to pay rent on military bases Kremlin forces have used since the closing days of World War II and recent incidents involving some of those Russian troops have angered Tajik communities. Turkmenistan is unhappy with the state of its natural-gas dealings with Moscow and is awaiting the reopening of a key gas pipeline that exploded in early April and for which it blames Russia's Gazprom. The decision not to attend by Kazakh President Nursultan Nazarbayev -- who is perhaps the biggest booster of the CIS, after Russia -- came as a complete surprise in Astana and his office offered no explanation for the move.

• Rahmon invites Berdymukhamedov to pay official visit to Tajikistan in 2010 DUSHANBE, October 12, 2009, Asia-Plus -- During his visit to Turkmenistan on October 9-10, President Emomali Rahmon invited his Turkmen counterpart, President Gurbanguly Berdymukhamedov, to pay an official visit to Tajikistan in 2010, according to presidential press service. In the course of bilateral talks in the Turkmen city of Turkmenbashi on October 9, the two leaders pointed to the necessity of opening of aerial and rail communications between the two countries. According to Russian media, Tajik leader stated during the negotiations that Tajikistan invited Russia and Central Asia’s states to join an international consortium on completing the construction of the Roghun hydroelectric power station (HPS). Hydroelectricity projects in Tajikistan were reportedly


among major topics of the talks. President Rahmon, in particular, noted that the hydroelectricity projects being implemented in Tajikistan have become “a subject misunderstanding and incorrect interpretation.” “Construction of hydropower plants in Tajikistan does not pose threat to interests of the downstream countries,” said Rahmon, “Moreover, they are being constructed on the inner rivers.”According to him, the reservoir of the Roghun HPS and the Kambarata reservoir in Kyrgyzstan will allow mitigating effects of low-water seasons in the region. Regulation of volumes of waters at the Roghun reservoir will allow providing more than 90 percent of the irrigated lands on an area of more than 4.5 million hectares in the Amudarya basin with water. Tajik leader expressed confidence that construction of the Roghun HPS is of significance for providing Turkmenistan, Uzbekistan and southern parts of Kazakhstan with energy and water resources during low-flow periods.

• President Rahmon departs for Kazakhstan to attend 3rd stage of military exercise for COFR

DUSHANBE, October 15, 2009, Asia-Plus -- President Emomali Rahmon departed for Kazakhstan today afternoon. Tomorrow, along with other heads of member nations of the Collective Security Treaty Organization (CSTO) President Emomali Rahmon will attend the third stage of the military exercise for the new Collective Operation Reaction Forces (COFR) created within the framework of the CSTO that is currently going on at the Matybulak training ground, presidential press secretary Abdufattoh Sharifzoda said. According to him, Tajik leader will return to Dushanbe Friday evening. We will recall that the initial stage of the military exercise marking the first official testing of COFR was held in Moscow on August 26-28. The first stage involved command-staff planning linked to the military-political aspects of coalition interaction. The second stage was held in Belarus in late September and the third stage was launched in Kazakhstan this month. Military units joined the second and third stages. According to the Ministry of Defense (MoD), the main purpose of third phase, involving some 7,000 military personnel, is in rehearsing preparation and joint use of COFR and the operational command troops Yug (South) in the region of the collective security. The MoD operational group is representing Tajikistan in the third stage of the exercise in Kazakhstan. The CORF was initiated by the Russian Federation in order to transform and expand by three to four times the existing CSTO rapid reaction dimension into a permanently ready, combat-capable force designed for intervention in crisis situations on the territory of CSTO member states. Economic /Energy Front

• Central Asian trade ministers look to boost ties with U.S. DUSHANBE, October 10, 2009, Asia-Plus – Trade ministers from five Central Asia countries and Afghanistan are in Washington this week for talks on expanding trade and investment, Raio Liberty reported on October 9. Deputy U.S. Trade Representative Demetrios Marantis said the United States is drafting a plan for Kyrgyzstan, Kazakhstan, Turkmenistan, Uzbekistan, and Tajikistan to supply more goods and services to operations in Afghanistan as a way of boosting their economies. In a speech at a conference on October 7 in Washington on U.S. trade with Central Asia, Marantis said the region's logistical support for U.S. and NATO forces is helping to build a stable Afghanistan. But he said more can be done. Marantis said his office is working with the Department of Defense and other U.S. agencies on a new initiative "aimed at increasing


opportunities for the [Central Asian countries] to supply goods and services to U.S. operations." He said the effort could create new opportunities for investment and job creation in the region, as well as help the United States and its NATO allies attain their security objectives. The United States signed a Trade and Investment Framework Agreement (TIFA) with all five Central Asian republics in 2004. The partners meet at annual meetings to find ways of promoting trade and investment between the United States and Central Asia. Marantis said the Obama administration is strengthening that agreement in two new ways. First, by adding a mid-year working-group meeting that will follow up on the issues and initiatives raised during the annual meeting. And second, by establishing bilateral channels for dialogue to complement the regional approach. Senior U.S. Defense Department officials briefed the Central Asian ministers at a TIFA meeting on October 8.

• Tajikistan’s external trade turnover amounts to $2.4701 bln in Jan-Sept 09 DUSHANBE, October 12, 2009, Asia-Plus -- Over the first nine months of this year, Tajikistan’s external trade turnover including electrical power and natural gas, has amounted to 2.4701 billion U.S. dollars, which was 71.9 percent of the January-September 2008 level or 966..5 million dollars fewer, the head of the Customs Service Nemat Rahmatov told reporters in Dushanbe today. According to him, Tajikistan had trade relations with 96 countries of the world, including 11 CIS states over the report period. The main trading partners for Tajikistan’s imports were Russia (553 million U.S. dollars), Kazakhstan (187 million U.S. dollars) and China (186.3 million U.S. dollars), the customs service chief said Rahmatov noted that primary aluminum and cotton fiber remained the main items of Tajikistan’s exports and China (US$265 million), Turkey (US95 million) and Russia (US$67 million) were the main trading partners for Tajikistan’s exports. Over the same nine-month period, customs service has transferred 1.0392 billion somoni to the country’s budget, he added.

• CSTO interstate commission for military and economic cooperation meets in Dushanbe on Oct 16

DUSHANBE, October 13, 2009, Asia-Plus -- The seventh session of the Interstate Commission for Military and Economic Cooperation of the Collective Security Treaty Organization (CSTO) will be held in Dushanbe on October 16. The session, presided over by Russian Deputy Minister of Industry and Trade, Ivan Materov, will discuss measures to stimulate military-economic cooperation, press release issued by the CSTO Secretariat said. The session will consider draft proposals on development of the military-economic cooperation program for the period till 2015, draft agreement on cooperation in elaborating, producing, exploiting, modernizing and utilizing military products. Besides, the session participants will also consider agreements on the procedure of providing the CSTO states with Russian technical standard-legal acts and cooperation on military traffic management and carriage of special cargos and military products, as well as regulations on interstate system of cataloging items of military logistics for armed forces of the CSTO member nations, press release said. The session in Dushanbe will also discuss the concept and regulations on advertising and exhibition activities of the CSTO states in the field of the military-economic cooperation. The CSTO Interstate Commission for Military and Economic Cooperation was founded in line with the decision of the CSTO Collective Security Council on June 23, 2005. The major goals of


the commission are the development of recommendations to secure all-round military and economic cooperation between the CSTO member nations, development and implementation of long-term programs on military and economic cooperation, preparation of proposals on joint R&D activity in the military area and others. Social Front

• Tajik president, Aga Khan inaugurate The Ismaili Center in Dushanbe DUSHANBE, October 12, 2009, Asia-Plus -- President Emomali Rahmon and His Highness the Aga Khan, the Spiritual Leader of the Shia Ismaili Muslims, officially opened The Ismaili Center in Dushanbe today afternoon. The opening ceremony was attended by high-ranking Tajik state officials. Speaking at the opening ceremony, President Rahmon expressed hope that the Center would promote further mutually beneficial cooperation between the Government of Tajikistan and the Aga Khan Development Network (AKD). His Highness the Aga Khan, for his part, hailed policy of Tajik leader aimed at strengthening of religious pluralism in the country. Opening of The Ismaili Center that is built in the center of the Tajik capital is evidence of that, His Highness the Aga Khan noted. The Ismaili Center Dushanbe is the sixth such institution in the world and the first in the Central Asian region. Beginning in 1984, major Ismaili Centers have been established in London, Vancouver, Lisbon, Toronto and Dubai. Like other Ismaili Centers, The Ismaili Center in Dushanbe is dedicated to enhance the process of understanding and exchange. We will recall that the groundbreaking ceremony for construction of the Ismaili Center in Dushanbe was held on August 30, 2003. Calling it "a place where people will come together to share their creativity and their wisdom," the Aga Khan said on August 30, 2003 that through the facilities, which they offer for lectures, presentations, conferences, recitals and exhibitions, alone or in collaboration with other national or international entities, the Ismaili Centers have become important cultural institutions. His Highness the Aga Khan arrived in Tajikistan on October 9 and is leaving the country today evening.

• US$14.15 mln worth of humanitarian aid delivered to Tajikistan in Jan-Sept 09 KHUJAND, October 14, 2009, Asia-Plus -- In January-September 2009, 14.16 million U.S. dollars worth of humanitarian aid has been delivered to the Sughd province, which is 2.99 million U.S. dollars more than in the same period of last year, the first deputy head of the Sughd customs service, Sulton Erboyev, told reporters in Khujand today. According to him, the aid has been delivered to the province mainly through the Sughd health directorate (medicines), UNDP CO in Tajikistan (food products), international organization Save the Children (wheat flour), and Dushanbe’s Children Protection Association (foodstuffs). Turkmenistan Political Front

• Minister of Health and Medical Industry of Turkmenistan severely reprimanded During the October 14 expanded government meeting, Turkmen President Gurbanguly Berdimuhamedov criticized the activities of the Ministry of Health and Medical Industry of the country. The head of state severely reprimanded Minister Ata Serdarov for shortcomings in the work, weakening of control over the course of construction of health facilities and omissions in the personnel matters. The president also "criticized rector of the Institute of International Relations Baba Zahyrov for unethical behavior which is inappropriate for a senior executive of the high-rank state agency, the State News Agency


of Turkmenistan (TDH) said. By the decree of the President, deputy governor of the city of Ashgabat Atamyrat Seyitgulyev was reprimanded for poor performance of official duties, weakening of monitoring the construction works in the capital.

• President of Turkmenistan replaces heads of several ministries and departments On October 14, at the enlarged meeting of the Cabinet of Ministers of Turkmenistan, President Gurbanguly Berdimuhamedov relieved Environment Minister Magtymguly Akmyradov of his duties "in connection with his transfer to another job." Babageldi Annabayramov, formerly head of the department of agricultural branch of the Cabinet of Ministers of Turkmenistan, was appointed to this post. Chairman of the Association of Bread Products "Turkmengallaonumleri" Atamyrat Altybaev was also relieved from his post in connection with the transfer to another job. Under the decree of the President, he was appointed deputy governor of Balkan province. Yeldash Ashyrov, who held the post of Deputy Minister of Water Resources of Turkmenistan, was appointed chairman the Association, the State News Agency of Turkmenistan (TDH) said. President Gurbanguly Berdimuhamedov dismissed the chairman of the State Commodity and Raw Materials Exchange of Turkmenistan, Myrat Berdimyradov, for inaptitude. Shaberdi Meredov was appointed new chairman of the exchange. Geo Strategic Front

• Turkmenistan Denies Entry To Peace Corps Volunteers ASHGABAT -- Turkmenistan has denied entry to dozens of U.S. Peace Corps volunteers, RFE/RL's Turkmen Service reports. Acting Country Director Christopher Leal told RFE/RL that 47 Peace Corps volunteers scheduled to come to Turkmenistan on September 30 were told the day before boarding a plane in Philadelphia that they would not be allowed to enter Turkmenistan if they traveled there. Leal said the organization did not receive an official explanation from the Turkmen government about the decision. He said all of the volunteers had letters of invitation, visas, and plane tickets. Leal said the volunteers have been invited by the Turkmen government to come next year, but that Turkmen officials were reportedly "not able to accommodate [them]" this year. The Peace Corps has been operating in Turkmenistan since 1993 and currently has 70 volunteers in the country. The decision to bar the Peace Corps workers from entering Turkmenistan comes after Turkmen students were prevented from traveling to U.S.-linked universities in Kyrgyzstan and Bulgaria last week. Leal said a meeting between officials from the Peace Corps and Turkmen officials in Turkmenistan was canceled. But he said he hopes corps officials will be able to meet next week.

• Rahmon invites Berdymukhamedov to pay official visit to Tajikistan in 2010 DUSHANBE, October 12, 2009, Asia-Plus -- During his visit to Turkmenistan on October 9-10, President Emomali Rahmon invited his Turkmen counterpart, President Gurbanguly Berdymukhamedov, to pay an official visit to Tajikistan in 2010, according to presidential press service. In the course of bilateral talks in the Turkmen city of Turkmenbashi on October 9, the two leaders pointed to the necessity of opening of aerial and rail communications between the two countries. According to Russian media, Tajik leader stated during the negotiations that Tajikistan invited Russia and Central Asia’s states to join an international consortium on completing the construction of the Roghun hydroelectric power station (HPS). Hydroelectricity projects in Tajikistan were reportedly among major topics of the talks. President Rahmon, in particular, noted that the


hydroelectricity projects being implemented in Tajikistan have become “a subject misunderstanding and incorrect interpretation.” “Construction of hydropower plants in Tajikistan does not pose threat to interests of the downstream countries,” said Rahmon, “Moreover, they are being constructed on the inner rivers.” According to him, the reservoir of the Roghun HPS and the Kambarata reservoir in Kyrgyzstan will allow mitigating effects of low-water seasons in the region. Regulation of volumes of waters at the Roghun reservoir will allow providing more than 90 percent of the irrigated lands on an area of more than 4.5 million hectares in the Amudarya basin with water. Tajik leader expressed confidence that construction of the Roghun HPS is of significance for providing Turkmenistan, Uzbekistan and southern parts of Kazakhstan with energy and water resources during low-flow periods.

• Presidents of Turkmenistan and Tajikistan hold talks in Caspian resort Avaza President of Turkmenistan Gurbanguly Berdimuhamedov and President of Tajikistan Emomali Rakhmon held talks in the Caspian Sea resort "Avaza". A number of bilateral documents were signed as a result of talks. During the meeting, the sides confirmed their intention to continue cooperation on regional security and stability, especially in the field of efficient use of hydropower resources of Tajikistan and the Central Asian region as a whole. Emomali Rakhmon also noted that the Tajik side considers it appropriate to take further measures to expand the range of traded goods and increase trade turnover in order to more fully utilize the economic potential of neighboring countries. On their part, Tajikistan expressed willingness to increase imports of products of Turkmen construction and agriculture industries Economic /Energy Front

• Turkmen President Reshuffles Key Energy Officials ASHGABAT (Reuters) -- Turkmenistan's President Gurbanguly Berdymukhammedov has reshuffled the gas-producing Central Asian country's senior energy officials, accusing some of negligence and inefficiency, state media said. Berdymukhammedov demoted Oil and Gas Minister Annaguly Deryaev, naming him the head of state oil firm Turkmenneft. Engineer and geologist Oraznur Nurmyradov, 50, has become the new minister. Analysts say Turkmenistan has lost billions of dollars this year due to a row with Russia which used to be the main buyer of its gas. Moscow halted imports in April after a pipeline explosion and demanded a review of supply terms. The two sides have said they are close to an agreement but supplies have yet to restart. Berdymukhamedov also sacked the head of state gas company Turkmengaz, Dovlet Mommaev, "due to health concerns" and fired the head of another state firm, Turkmenneftegazstroy, which focuses on construction in the oil and gas sector. Commenting on the reshuffle on state television, Berdymukhamedov accused the officials of "total negligence." "One should not ask: Why boost oil and gas output when demand is falling due to the global recession?" he said. "Quick recovery will follow the downturn...Energy will be in great demand." Following the row with Russia, Turkmenistan has stepped up efforts to diversify gas exports. It will boost export capacities to Iran and launch a pipeline to China in December. But analysts say the former Soviet republic needs to open up its potentially huge onshore gas fields to foreign investors if it wants to significantly increase output and secure access to the European market.

• Turkmenistan to continue developing oil and gas industry despite global crisis


During the October 12 field meeting on the issue of further development of the fuel and energy sector of Turkmenistan, President Gurbanguly Berdimuhamedov urged the industry managers to be more active in further modernizing the infrastructure, developing and strengthening the raw material base of the oil and gas industry, increasing exploration, reducing the number of inactive wells and production losses. As the press service of the head of state, reports the president stressed that the industry leaders bear personally responsibility for a full-fledged solution to the tasks posed for them and will report regularly on the progress made. "Turkmenistan is planning to increase gas production to 250 billion cubic meters, and oil - up to 100 million tons per year. There is no reason to look back at the world economic crisis. The period of recession in the global economy is invariably followed by a period of rapid expansion, which is usually associated with an increase in energy consumption. Given this factor, we now need to create reserve funds for the future, attract more foreign investment, stake on the development of industrial science, introduce the most advanced technologies, including nanotechnology in the energy sector," the president said.

• Turkmenistan reports 2,4 time increase in trade turnover with Russia's Astrakhan In 2009, trade turnover between Turkmenistan and Astrakhan region of Russia increased 2,4 times year-on-year. This was reported by the press-service department and information policy of the administration the Governor of Astrakhan region. It is noted that a range of commodity product supplied from Astrakhan region to Turkmenistan expanded greatly. The list of exported goods includes complex steel structures, machinery, power cables, glass, and food. The Turkmen community residing in the territory of Astrakhan region is the third largest in Russia and this fact defines a particular interest in cooperation with Turkmenistan and sustained action to promote such cooperation, the press service said.

• Turkmenistan's GDP up 10.8 per cent in first nine months of 2009 All branches of the national economy of Turkmenistan reported high growth for the period of January-September 2009, Chairman of the State Committee on Statistics Ashirguly Gurbangulyev said at a government meeting on 14 October. "In particular, good growth was achieved in processing industry, including power generation, chemical and food industries, as well as construction materials industry," the State News Agency of Turkmenistan (TDH) quoted him as saying. In his turn, Deputy Chairman of the Cabinet of Ministers Tuvakmammet Djaparov said that Turkmenistan's GDP growth for the first nine months of the year amounted to 10,8 per cent. According to him, high GDP growth accounted largely "for rapid development in the spheres of construction, agriculture and service industries. Thus, the grain harvest this year rose 1,5 times year-on-year, while investment in construction grew by 300 percent compared to the same period last year. According to the official statement, after hearing the reports, Turkmen President Gurbanguly Berdimuhamedov "expressed general satisfaction with the pace of socio-economic development of Turkmenistan." "Life has shown how correct and timely were the decisions to diversify the economy, to create the Stabilization Fund that made it possible to achieve good results as a whole," the head of state stressed.

• First International Investment Forum begins in Ashgabat An International Investment Forum kicked off at the Exhibition Center in Ashgabat on October 15. The forum brought together over 600 heads of major foreign companies,


stock exchanges, commercial banks, representatives of consulting and rating agencies from more than 50 countries. The forum was organized by the Chamber of Commerce and Industry of Turkmenistan jointly with British company "IC Energy Limited." The forum participants will discuss a strategy and investment opportunities in the oil and gas and chemical industries of Turkmenistan, as well as prospects for investment projects in a wide range of areas. These include real estate, construction, social sphere, engineering and transport infrastructure, textiles, banking, healthcare and pharmaceutical industry, agribusiness, telecommunications and advanced information technology, electricity, and alternative energy sources. According to the official press release, there will be also held presentation of the National Tourist Zone Avaza and Exhibition of Economic Achievements of Turkmenistan on the final day of the forum to mark the 18th anniversary of Turkmenistan's independence. President of Turkmenistan Gurbanguly Berdimuhamedov sent a welcome message to the participants of the International Investment Forum. The text of the messages was published in the central press of the country, the Turkmenistan.ru correspondent reports from Ashgabat. "Viewing the economic context an essential component of international cooperation, we are building and strengthening mutually beneficial partnerships with big companies, and conducting an active dialogue with investors," the head of state stressed. The President expressed confidence that "such a high-level forum will demonstrate investment opportunities in Turkmenistan and contribute to enhancing cooperation between business circles of different countries

• Turkmen fuel and energy sector undergoes major personnel reshuffle On September 12, President of Turkmenistan Gurbanguly Berdimuhamedov held a field meeting on the issues related to development of the fuel and energy sector and the state of affairs in the industry. As the Turkmenistan.ru correspondent reports from Ashgabat quoting the press service of the head of state, during the meeting the President expressed serious concerns with the performance of certain managers of the fuel and energy sector, noting a number of shortcomings and deficiencies caused by their irresponsible attitude to official duties. The Turkmen leader sharply criticized the State Concern "Turkmennebitgazgurlushik", noting the lack of labor discipline in the State Concern's subsidiary organizations and poor quality of facilities under construction. "If last year the task under the Programme of gasification of settlements throughout the country was fulfilled by 30%, this year it hardly reached 25%," the head of state said. He dismissed the chairman of the State Concern "Turkmennebitgazgurlushik", Atamyrad Durdiyev, and appointed Akmyrat Egeleyev in his place. According to the president, the State Concern "Turkmennebit" also failed to meet the requirements. "The State Concern has not taken necessary measures to increase oil production, while its subsidiary organizations do not pay proper attention to the introduction of innovative technologies and modern equipment, and failed to fulfill the plan for drilling oil exploration wells," the president said. Gurbanguly Berdimuhamedov dismissed the head of the State Concern "Turkmennebit", Orazdurdy Hadzhimyradov, due to the transfer to another job. Annaguly Deryaev was appointed new chairman of the concern. He was relieved of the post of minister of oil and gas industry and mineral resources of Turkmenistan. Oraznur Nurmyradov succeeded him as new minister. President of Turkmenistan appointed Nury Muhammedov chairman of the State Concern "Turkmengaz". The President relieved Dovlet Mommayev of the post of acting chairman of the concern.


Apart from this, Batyr Tekayev was relieved from the post of chairman of the State Committee for Fisheries of Turkmenistan. Amanmyrad Sahadov was appointed in his place. Gurbanguly Berdimuhamedov relieved Charygeldy Movlamov of his post as director of "Tedzhenkarbamid" plant of the State Concern "Turkmenhimiya" for serious shortcomings in the work, and appointed deputy director, Charyyar Tushiev, acting director of the plant. "Turkmenistan pays much attention to modernization of the oil and gas industry. Investing heavily in the development of the industry, we expect adequate efficiency," the Turkmen leader noted. Social Front

• Citizens of Turkmenistan propose awarding title of national hero to head of state Speaking at a government meeting on October 14, chairman of the Central Commission on Elections and Referenda of Turkmenistan Murad Karryev reported on "numerous requests from citizens and labor collectives of enterprises, institutions and public organizations from all over the country to confer the title of Hero of Turkmenistan on President Gurbanguly Berdimuhamedov. As the State News Agency of Turkmenistan (TDH) said, the chairman of the Central Election Commission made a proposal to support a nationwide initiative to award the high title to the Turkmen leader. The proposal was welcomed with the standing applause. Thanking for the high evaluation of his work and concluding the meeting, Gurbanguly Berdimuhamedov wished those present great success in their work for the good of the motherland, the official statement says.

• Foundations of green park zones of future Caspian Sea resort laid A tree planting campaign was held on October 9 in the Caspian Sea coast with the participation of President of Turkmenistan Gurbanguly Berdimuhamedov. During the action, future park zones were laid in the territory of the national tourist zone Avaza. As the State News Agency of Turkmenistan (TDH) said, the Turkmen leader planted a young pine in a specially prepared section. Deputy Chairmen of the Cabinet of Ministers of Turkmenistan, the leaders of the Mejlis, ministries and departments, heads of diplomatic missions accredited to Turkmenistan and international organizations, guests from abroad, as well as young people of Turkmenistan took part in the action together with the president. It should be recalled that under a decision of the head of state, a total of 145,640 trees will be planted in Avaza by the end of this year as part of the planting campaign Uzbekistan Political Front

• The leader of Birdamlik movement goes back to Uzbekistan Bakhodir Choriev, Uzbek political emigrant and the leader of Birdamlik (Solidarity) movement, decided to go back to Uzbekistan and continue his political activity at home. This is indicated in his letter, directed to Ferghana.Ru. Reminding that Birdamlik movement started its activity in Uzbekistan on October 10, 2004 Choriev says that "today, the organization is officially registered in USA, Norway, Sweden as well as functions in Russia, Kazakhstan, Kyrgyzstan, Turkey, Ukraine and Uzbekistan, including autonomous Republic of Karakalpakstan". The political emigrant is complaining that Birdamlik was not able to organize the congress, scheduled to December of 2008. The congress of the active members was cancelled due to the fact that, according to Mr. Choriev, the leaders of the movement received threatening messages from authorities. It has to be mentioned that the attempt of


Birdamlik to organize mass demonstrative of people in white dresses in several cities of Uzbekistan also failed. The authorities never stopped persecuting the Birdamlik members and "in this challenging time", Choriev, the leader of Birdamlik, "made a decision to continue struggle abreast his comrades in Uzbekistan".The news about the return of Choriev reminds the recent story with well-known Turkmen dissident Gulgeldy Ananniyazov, which decided to come back home last year in order to help newly elected President improve the life in the country. His best endeavors failed: entering the country he was immediately arrested by Turkmen special services and sentenced to 11 years of prison. Nonetheless, it seems like Bakhodir Choriev is not lost in this situation. "Today, prior to my return home I have clear action plan, but I have no clue about the reaction of the government. It may come out that I will be accused of something. On the other hand, I may also safely arrive home, start executing my rights and political activity under the current law", says Birdamlik leader. "Having the air ticket for October 16, I realized that not only I am missing it so much but I must support my partners". The conflict between Choriev and the government of Uzbekistan started once the authorities took his business away. Bakhodir Choriev left Uzbekistan after feeling that his family is threatened: on June 1, 2004 interior ministry officers kidnapped his son in order to force the dissident stop his activity and, specifically, to prevent the meeting, demanding the resignation of President Islam Karimov. In May of the same year, Choriev was seized and assaulted. He was dropped off in the remote region and the assaulters took away his Daewoo Nexi, the only source of income. "It took me long time to make a decision to leave the country, where I felt as a slave, but believed this would be unfair in relation to my partners, friends and Motherland. However, when it got really touch and dangerous for my family to stay in the country, I made uneasy decision to leave", he shared in the interview to Ferghana.Ru. Today, Bakhodir Choriev resides in USA where he got political asylum. Geo Strategic Front

• Activists Urge EU Not To Lift Uzbekistan Arms Embargo Rights activists from the Independent Civil Society of Uzbekistan in Germany are calling on the European Union not to lift its last sanction against Tashkent, RFE/RL's Uzbek Service reports. The activists, members of the Uzbek diaspora, and Andijon refugees issued an open letter to the EU in advance of the decision about the arms embargo against Uzbekistan. The EU is expected to make the decision later this month. Lejla Medanhodzic, an Uzbek-German Forum for Human Rights official, told RFE/RL that the EU's decision to lift the last remaining sanction against Uzbekistan's government "would be a big mistake." The activists' open letter stresses that suspending the last of the sanctions -- which were made following the 2005 mass killings of protesters in the southern Uzbek city of Andijon -- would signal to the Uzbek authorities that the EU is prepared to accept the country's "atrocious human rights record." The letter also draws attention to the fact that the Uzbek authorities did not fulfill their obligations by refusing to conduct an independent international investigation into Andijon, denying entry to Human Rights Watch researchers, and convicting human rights activists "on trumped up charges" because of their civic activity. The EU imposed an arms embargo on Uzbekistan and a travel ban on 12 high-ranking Uzbek officials in November, 2005, in the aftermath of the Andijon events. In October 2008, the EU and Uzbekistan appeared to have normalized their relationship after the EU


dropped its visa ban on top Uzbek officials. In exchange, Uzbekistan agreed to hold some human rights meetings every year and to allow the United Nations, the Organization for Security and Cooperation in Europe (OSCE), and selected nongovernmental organizations greater access to the country. The rescinding of the travel ban came as EU officials said Tashkent had made progress in human rights, including abolishing the death penalty, releasing some political prisoners, and instituting habeas corpus. Rights organizations said that the human rights situation in the country has not improved and protested the EU decision.

• President of Uzbekistan receives US Assistant State Secretary President of Uzbekistan Islam Karimov received US Assistant State Secretary for South and Central Asian Affairs Robert Blake on 12 October in Tashkent. Uzbekistan and the US had been developing relations in various spheres, which, among others, cover a wide range of issues of international policy, Islam Karimov stated. Among them are combating transnational threats and strengthening regional security and stability, President's press service reported. The two states cooperate in establishing peace and stability in Afghanistan and the economic renewal of this country. Delivery of non-military and humanitarian cargo to Afghanistan is carried out through the territory of Uzbekistan. Robert Blake said the US administration was interested in further development of mutually beneficial relations with Uzbekistan. The sides considered issues of expansion of Uzbek-American relations and other topics of mutual interest. Economic /Energy Front

• Azerbaijani, Uzbek Auditor Chambers sign cooperation agreement Head of the Azerbaijan Chamber of Auditors Vahid Novruzov and his Uzbek counterpart Ravshan Haydarov signed a cooperation agreement on Oct. 13. Speaking to the signing ceremony, the chief of the Azerbaijan Chamber of Auditors spoke of President Ilham Aliyev`s attention towards developing audit in the country. He also noted the Azerbaijan Chamber of Auditors signed 17 agreements and protocols of intentions with 13 foreign counterparts over the last 10 years. Novruzov said the two countries enjoy high level cooperation in various fields, including politics, economics and culture. He underlined “Uzbekistan has always supported Azerbaijan`s fair position on the settlement of Armenia-Azerbaijan conflict over Nagorno-Karabakh”.The Uzbek chairman stressed relations between Azerbaijan and Uzbekistan were “rapidly developing”. Haydarov also spoke of his organization`s activities.

• Kyrgyzstan pays out $3.5M of its gas debt to Uzbekistan Kyrgyzstan has paid out $3.5 million of its gas debt to Uzbekistan, Kyrgyzgas company informed the news agency 24.kg Monday. Other $2 million will be reportedly transferred to Uzbekistan this week. Salamat Aitikeev, the Director General of Kyrgyzgas will leave for Tashkent on October 13 to resume talks over gas supply to Kyrgyzstan in 2010. Exclusively of the repaid sum, Kyrgyzstan’s gas debt amounts to $15.5 million.

• Uzbekistan resumes full gas supply to Kyrgyzstan Uzbekistan resumes full gas supply to all regions of Kyrgyzstan, director of the Kyrgyzgas Company Salamat Aitikeev told 24.kg Thursday morning. Aitikeev left for Tashkent Wednesday to bargain with the neighbors about possible continuation of gas


relations between the two countries. Earlier, official Tashkent had refused any talks with Kyrgyzstan and cut off supplies to the South Kyrgyzstan. As of October 14 2009, Kyrgyzstan paid off only $4.6 million of its $19 million debt, but Aitikeev reportedly persuaded the Uzbeks to resume gas supply to Kyrgyzstan and lift all the restrictions.

• Uzbekistan not going to quit Central Asia’s power system, Uzbek officials say DUSHANBE, October 13, 2009, Asia-Plus -- Uzbekistan is not going to quit Central Asia’s power system, Uzbek state-run joint-stock company Uzbekenergo stated yesterday, according to Kazakhstan’s news agency Kaz TAG. The Uzbekenergo representative said that the Uzbek side had notified relevant bodies of Kazakhstan and Kyrgyzstan that it intended to discuss changes to the terms of transit of electricity to Kyrgyzstan via Uzbek power systems. “We want to impose payment for transit of electricity to Kyrgyzstan; earlier, power deliveries to Kyrgyzstan [via Uzbek power systems] had been considered power interchange and had been free,” the Uzbekenergo representative said. We will recall that some media in late September reported that Uzbekistan allegedly intend to quit the Central Asian common power system. Speaking in an interview with Asia-Plus, Tajik MP Shodi Shabdolov, who is power engineering specialist, said on October 1 that Uzbekistan’s intention to quit the Central Asian common power system is unrealizable. According to him, this is unrealizable for technical and economic reasons. “Most likely, Uzbekistan has made this statement for the purpose of raising rates of its electricity and transit fees for supplying electricity via its power systems,” Shabdolov said. He also added that it could not be ruled that the statement was also politically motivated. “All know Uzbekistan’s attitude to construction of large hydropower facilities in Tajikistan and Uzbekistan, and most likely, this statement released through media is another instrument of Uzbeks to make pressure n their neighbors,” the expert said. Social Front

• Uzbekistan: Film Industry Flourishes After a Decade of Post-Soviet Decline Film industry is flourishing in Uzbekistan as low-budget movies starring famous singers and utilizing heart-wrenching plots are gaining popularity with the Uzbek audiences. However, widespread copyright piracy and shortage of investment remain major roadblocks for the industry’s development. According to the 2008 statistics of UzbekKino, the state agency overseeing the Uzbek film industry, there are close to fifty private film studios in the country. In 2008 they produced 48 films, compared with 30 in 2006, 20 in 2005, and a dozen produced between 1991 and 2000. Uzbek TV soap operas modeled after Latin American and Korean ones are also becoming popular across Uzbekistan. In November 2008, Uzbek filmmakers instituted an annual ceremony to award best films and actors. The current trend marks a stark contrast to the early 1990s, a period when the Uzbek film industry was on the verge of collapse as lavish Soviet state subsidies abruptly ended. Most Uzbek films rely on low budgets and heart wrenching plots to attract viewers. The 2005 box-office hit, "An American Groom," fits this genre. A young Uzbek-American visits his grandfather’s village in a remote part of Uzbekistan only to fall in love with an Uzbek girl from a conservative family. The girl rejects his charms and refuses to marry


him. The American wins her over only after he masters nuances of Uzbek traditions and his affluent grandfather generously gifts one million dollars to her family. “Super Kelinchak,” (Super Daughter-in-Law), a 2008 box office hit, tells the story of a posh city woman who falls for and marries a man from a family where conservative values run strong and wives are subordinated to their in-laws. In the course of the ensuing power struggle with her feisty mother-in-law, the city woman learns how to wear traditional clothes, milk cows and respect family traditions. Sobirjon Rahimov, an assistant film producer based in Tashkent, told Ferghana.ru that film directors often pay out-of-pocket to produce such movies. “It costs about 30 to 50 thousand [US] dollars to make [a film], but the return can be three time bigger.” According to Rahimov, it takes less then three months to complete a film in Uzbekistan. Rahimov said that directors often invite famous pop singers, comedians and TV personalities to star in major roles because their popularity attracts viewers. An A-list actor is paid $3000 for a major role, while people who have acting aspirations pay cash themselves to play supporting roles. Uzbek film critics say that in seeking quick profits, most films lack quality. In February 2009, Jahongir Kasymov, deputy director of UzbekKino, told Uzbek state newspaper Xalk Suzi journalists: “Not all films deserve high awards. Sometimes, the authors pay attention to the form, but not to the content… Unfortunately, the level of their art and professionalism is quite low.”According to Rahimov, one reason for low quality is that large investments in good quality movies do not pay. Rahimov suggested that movie producers lose a large share of their profits to movie piracy – an endemic problem in Uzbekistan. Across Uzbekistan, bootleg stands selling pirated movies abound. According to Rahimov, Uzbek film producers appeals to the state to crack down on movie piracy have been largely unsuccessful. The Uzbek government has shown some willingness to support film industry. Each year, the government provides UzbekKino funds for six feature films and several documentaries. However, according to Rahimov, these funds do not reach private studios. Instead, UzbekKino tends to spend these funds for costly projects that promote Uzbek state ideology. For example, “Tamerlane,” a 2003 UzbekKino production depicting a medieval conqueror – Uzbekistan’s current flavor for national hero - flopped at the box office despite its big budget. In 2002, several film directors sent a letter to Uzbek government, accusing the UzbekKino leadership of mismanagement and corruption. The change in UzbekKino leadership did not resolve problems of the film industry. Movie theaters too are inaccessible for the country’s primarily rural population.“They used to play Indian movies in our theater in the Soviet days. But nobody goes to see movies. People watch movies at home,” a resident in the central city of Jizzah told Ferghana.ru. Many Uzbek viewers seem to prefer watching films at homes on TV or on DVD players to save costs. One can buy a pirated DVD disk containing 10 films for less than two dollars at any street newspaper stand. A movie ticket for a theater in Tashkent costs four thousand sums. Cheap Chinese DVD players fill bazaars. But there is some hope that things may change. Small makeshift movie theaters for ten or fifteen people are popping up in some Uzbek towns. Some of these theaters feature Dolby Surround systems and popcorn stands. Although still playing pirated movies, they are attracting young viewers.

• Uzbekistan: The Bukhara Students are forced to work at cotton fields


On September 27, 2009. Over a thousand students of the Bukhara State University were sent to cotton fields. Ferghana.Ru found the document, proving the fact of blackmail and threat that force students to work at cotton fields. According to the presidential decree on August 20, 2008 «On organization and implementation of cotton harvesting campaign» and appropriate decrees of local authorities, the student participation in cotton harvesting considered as «field internship». The students, missing the field work without reasons, are dropped from university. In this concern, I kindly ask you to urgently show up for field work. Other, we inform that you might be dismissed. Raupov S.S., the Dean of Humanities, Bukhara State University. The students, missing the cotton campaign, received such notifications with seal and signature of dean. Those, missing the field work due to poor health conditions, were carefully examined by doctors. Nonetheless, that does not mean that only sick students missed the cotton campaign. Some were able to buy off for 200 US dollars while others preferred to send mardikor (hired workers), paying them 100-200 thousand sums (about $70-140 according to official rate). The students, missing the cotton works due to reasonable excuses, had to daily show up in the schools, where they are «trusted» to dig the ground in the campus area or clean the rooms.

Business and Politics in the Muslim World Weekly Report

Central Asia October 16, 2009 to October 23, 2009

Uzma Siraj Table of Contents Azerbaijan Political Front………………………………………………………………………….4 Geo Strategic Front……………………………………………………………………5 Economic/Energy Front……………………………………………………………….5 Social Front……………………………………………………………………………6 Kazakhstan Political Front………………………………………………………………………….6 Geo Strategic Front…………………………………………………………………….6 Economic/Energy Front………………………………………………………………..6 Social Front…………………………………………………………………………….7 Kyrgyzstan Political Front………………………………………………………………………….7 Geo Strategic Front…………………………………………………………………….8 Economic/Energy Front………………………………………………………………..8 Social Front…………………………………………………………………………….8 Tajikistan Political Front…………………………………………………………………………..8 Geo Strategic Front…………………………………………………………………….8 Economic/Energy Front………………………………………………………………..9 Social Front……………………………………………………………………………10 Turkmenistan Political Front………………………………………………………………………….10


Geo Strategic Front…………………………………………………………………….10 Economic/Energy Front………………………………………………………………..10 Social Front…………………………………………………………………………….11 Uzbekistan Political Front…………………………………………………………………………..11 Geo Strategic Front……………………………………………………………………..12 Economic/Energy Front………………………………………………………………...12 Social Front……………………………………………………………………………..12 Out Line Azerbaijan Political Front

• Azerbaijan Democratic Party refuses to participate in municipal elections • Azerbaijan’s opposition party nominates candidates for municipal • A total of 915 people nominated for municipal elections in Azerbaijan • Azerbaijani parliament to debate Turkey-Armenia protocols • Azerbaijani opposition faces difficult situation: leader of opposition movement

Geo Strategic Front • Azerbaijan president receives chief of Iranian presidential office • Azerbaijan's growing role in region and world will never enable Armenia to move

away from isolation: Azerbaijani president • U.S. Deputy Assistant Secretary of State for European and Eurasian Affairs to pay

first visit to Azerbaijan Economic/Energy Front

• World Bank managing director will trip to Azerbaijan • Interconnection of Azerbaijani, Iranian and Russian energy systems is under a

design stage: Azerenergy chief • Assets of State Oil Fund of Azerbaijan increases almost 20 percent in 2009 • Azerbaijani Central Bank director announces inflation forecast for 2010

Social Front • Azerbaijani 9-year pupils to take centralized exams: education minister • Azerbaijani president decrees to establish Science Development Fund • Azerbaijani president decrees to establish Science Development Fund

Kazakhstan Political Front

• President of Kyrgyzstan names new prime minister • Kazakhstan Court rejects Jailed Journalist's Appeal • Kazakhstan opposition calls for social justice at a meeting in Astana

Geo Strategic Front • Khalifa on visit to Kazakhstan • Kazakhstan not a nuclear threat, official says • President of Romania to pay official visit to Kazakhstan

Economic/Energy Front • Kazakhstan willing to pump Oil into Pipeline via Turkey


• Japan wants to expedite Agreement with Kazakhstan on Peaceful use of Atomic Energy

• Chinese investments in Kazakh energy worry Europeans • Kazakhstan’s economy to decline 1.3 percent in 2009 - EBRD • Nazarbayev says he is eager to supply oil for BTC pipeline • Russia, Kazakhstan, Belarus to start customs union on Jan. 1 • Kazakhstan ready for BTC • Kazakhstan and Russia to seal agreement on parallel operation of the energy

systems by yearend Social Front

• Kazakh court rejects jailed activist's appeal Kyrgyzstan Political Front

• Bakiyev reshapes Kyrgyzstan's Government to suit His Interests • Kyrgyzstan launches large-scale government reform • Social Democrats support new PM’s structure of government • New cabinet to respect opposition views, new PM says

Geo Strategic Front

• Kyrgyzstan partially seals border with Tajikistan • Two alleged Hizb ut-Tahrir activists held in Kyrgyzstan

Economic/Energy Front • Swiss government invests in trade promotion in Kyrgyzstan

Social Front Tajikistan Political Front

• Majlisi Namoyandagon board considers amendments constitutional law on the government of Tajikistan

• President signs number of laws adopted by parliament this year Geo Strategic Front

• Zarifi receives Russian deputy foreign minister • Tajik speaker, Kazakh envoy discuss cooperation issues • Tajik FM, France’s envoy for Afghanistan and Pakistan discuss the present

situation in Afghanistan • President Rahmon departs for Moscow for three-day visit tomorrow • Tajik speaker, U.S. ambassador discuss cooperation issues • Medvedev, Rahmon adopt joint statement • No problems with Russian military base in Tajikistan, says Russian defense

minister Economic/Energy Front

• Iranian vice-governor holds talks in Dushanbe to establish cooperation with Tajik enterprises

• Tajikistan tops CA states in economic use of water, says minister


• Tajikistan exports 3.763 bln kWh of electricity in Jan-Sept 09

Social Front

• Tajikistan begins Central Asia's Biggest Mosque • Corruption costs Tajikistan at some 56 mln somoni in Jan-Sept 09 • Third international human rights documentary festival comes to Khujand

Turkmenistan Political Front Geo Strategic Front

• Turkmenistan denies entry to Peace Corps • New border crossing checkpoint opens on Turkmen-Uzbek border in Farap

district • Turkmen president receives Russian interior minister • Russian Minister of Internal Affairs Rashid Nurgaliyev arrives in Turkmenistan • Ministers of Internal Affairs of Turkmenistan and Russia sign protocol on

cooperation for 2010-2011 Economic/Energy Front

• Turkmenistan: New Pipeline to start Pumping Gas to Iran on December 20 • Turkmen president sacks several energy chiefs • Turkmenistan and Astrakhan region to continue expansion of trade and economic

ties • Turkmen President, head of Gazprom hold talks • Ministry of Trade and Industry of Tatarstan discusses cooperation with

Turkmenistan • Turkmenistan completes construction of its section of pipeline to China

Social Front • Traditional exhibition of economic achievements of Turkmenistan kicks off in

Ashgabat Uzbekistan Political Front

• Preparations for the elections: consistent work is carried out • Parties approved for participation in elections • Election Commission holds session

Geo Strategic Front • Uzbekistan: European Union looks Likely to lift Arms Embargo • New border crossing checkpoint opens on Turkmen-Uzbek border in Farap

district • President of Uzbekistan receives Indian Foreign Minister • Council of SCO Anti-Terrorist Structure holds session

Economic/Energy Front • International industrial fair and cooperation exchange continues in Tashkent


• IMF commends economic policy of Uzbekistan • Uzbekistan’s GDP grows 8% in Jan-Sep

Social Front • Week of beauty and elegance


• Azerbaijan Democratic Party refuses to participate in municipal elections Azerbaijan Democratic Party refused to participate in the municipal elections to be held on on Dec. 23. The party’s press office said the decision was passed at the extraordinary meeting of the ADP Management Board. ADP issued a statement about it. • Azerbaijan’s opposition party nominates candidates for municipal Azerbaijan Liberal Democratic Party (ALDP) has held its next meeting, ALDP chairman Fuad Aliyev said. He said the meeting discussed the participation of LDPA in the upcoming municipal elections to be held on Dec. 23. • A total of 915 people nominated for municipal elections in Azerbaijan The district election commissions have approved 915 candidates for municipal elections so far in Azerbaijan • Azerbaijani parliament to debate Turkey-Armenia protocols The Azerbaijani parliament will debate the Turkey-Armenia protocols. "I and my counterparts who have just returned from Turkey will put forward proposals to prevent discussion of the protocols signed at the Turkish parliament," • Azerbaijani opposition faces difficult situation: leader of opposition movement Leader of the Azerbaijani opposition movement admits that the opposition faces a very difficult situation. "It is necessary to maintain the unity in a situation when our resources are extremely limited,"

Geo Strategic Front • Azerbaijan president receives chief of Iranian presidential office President of Azerbaijan Ilham Aliyev received head of the Iranian Presidential Office Esfandiar Rahim Mashaie on Oct. 15. President Ilham Aliyev stressed the importance of the visit for discussing current state and prospects of bilateral relations between the two countries • Azerbaijan's growing role in region and world will never enable Armenia to move

away from isolation: Azerbaijani president President of Azerbaijan Ilham Aliyev on Friday presided over a meeting of the Cabinet of Ministers on the outcomes of socio-economic development for nine months of 2009. In his opening remarks, the President said Azerbaijan’s economy had developed successfully through nine months of the current year • U.S. Deputy Assistant Secretary of State for European and Eurasian Affairs to pay

first visit to Azerbaijan U.S. Deputy Assistant Secretary of State for European and Eurasian Affairs Tina S. Kaidanow will pay the first visit to Azerbaijan on Oct.22 -23, the U.S. embassy in Baku said.

Economic/Energy Front • World Bank managing director will trip to Azerbaijan


The World Bank Managing Director, Ms. Ngozi Okonjo-Iweala, will arrive in Baku on Oct. 20 as part of her tour to the region, said the World Bank’s Office in Baku. She has already held meetings in Armenia and Georgia and since October 17 • Interconnection of Azerbaijani, Iranian and Russian energy systems is under a

design stage: Azerenergy chief Overhaul of 500 kV electricity transmission line between Azerbaijan and Georgia will complete in 2010-2011, head of Azerenergy Etibar Pirverdiyev said on Oct. 20. "At present, there is a 330 KV transmission line between the two countries, which does not ensure export-import operations sufficiently," said Pirverdiyev • Assets of State Oil Fund of Azerbaijan increases almost 20 percent in 2009 Budget revenues of the State Oil Fund of the Republic of Azerbaijan (SOFAZ) reached 5 465.2 million manats in January-September, 2009, while budget expenditures constituted 3 954.1 mln. manats, SOFAZ executive director Shahmar Movsumov said to press conference on outcomes of the nine months. • Azerbaijani Central Bank director announces inflation forecast for 2010 Anticipated rate of inflation for 2010 is 3 to 5 percent in Azerbaijan. It is not ruled out that this figure will fall to even lower levels, Central Bank Director Elman Rustamov said on Oct. 21."

Social Front • Azerbaijani 9-year pupils to take centralized exams: education minister -year pupils will take the centralized examinations in Azerbaijan. "This year, for the first time, the Education Minister will organize centralized examinations for 9-year pupils," • Azerbaijani president decrees to establish Science Development Fund President Ilham Aliyev decreed on establishment of Science Development Fund under the President of the Republic of Azerbaijan to ensure stimulation of fundamental scientific researches in Azerbaijan, strengthen exploration of the country`s natural resources and cultural and historical heritage,

Kazakhstan Political Front

• President of Kyrgyzstan names new prime minister President of Kyrgyzstan Kurmanbek Bakiev has signed a decree to appoint Daniyar Usenov to the prime minister's post, after a solid vote of the major parliament fraction supported his candidacy, "24.kg" news agency reported. • Kazakhstan Court rejects Jailed Journalist's Appeal A Kazakhstani court on Thursday upheld a three-year prison sentence for a journalist in a case that has sparked international criticism from rights groups, ahead of Kazakhstan's chairmanship of a European human rights body. • Kazakhstan opposition calls for social justice at a meeting in Astana A block of opposition forces For a Just Kazakhstan (FJK) held an authorized meeting demanding social justice."This protest campaign iss held to draw attention to the crisis in the social sphere that adversely affect the health of the nation and income of every resident,” head of Astana branch of the Communist Party of Kazakhstan in Astana Tota Yelyubayeva said at the meeting.

Geo Strategic Front • Khalifa on visit to Kazakhstan


Sheikh Khalifa bin Zayed, President of the UAE and Ruler of Abu Dhabi, this week began a private visit to Kazakhstan that will last several days. • Kazakhstan not a nuclear threat, official says A US intelligence report on concerns about Kazakhstan's nuclear deals is misleading, said the Kazakh government Monday. A Kazakhstan government official says that, contrary to recent reports, his country is not looking to do nuclear deals with countries that have a mixed record on proliferation. • President of Romania to pay official visit to Kazakhstan The President of Romania, Trajan Basesku, will pay an official visit to Kazakhstan next week. The official representative of the Ministry of Foreign Affairs of Kazakhstan, Yerzhan Ashikbayev, informed at a weekly briefing in the Ministry for Foreign Affairs of Kazakhstan, the agency reports.

Economic/Energy Front • Kazakhstan willing to pump Oil into Pipeline via Turkey Kazakhstan's president confirmed Thursday that his country is willing to pump crude into a planned $1.5-billion pipeline, to bring Caspian oil to the Mediterranean via Turkey. Addressing Turkey's parliament, Nursultan Nazarbayev said: • Japan wants to expedite Agreement with Kazakhstan on Peaceful use of Atomic

Energy Japan ‘s Vice Minister of Economy, Trade and Industry Hiroyuki Ishige has announced Japan wants to speed up the signing of an agreement on the peaceful use of atomic energy with Kazakhstan. • Chinese investments in Kazakh energy worry Europeans China Investment Corporation’s acquisition of a stake in KazMunaiGas Exploration Production and the opening of a pipeline linking oil-rich western Kazakhstan to the Chinese border meant it was inevitable that China’s grasp of Kazakh natural resources would be the hot topic at this year’s Kazakhstan International Oil and Gas Exhibition • Kazakhstan’s economy to decline 1.3 percent in 2009 – EBRD

The European Bank for Reconstruction and Development (EBRD) has revised its economic growth forecast for Kazakhstan in 2009-2010, the bank said in a statement. “In 2009, Kazakhstan’s economy is expected to decline by 1.3 percent, while in 2008 it recorded a 3.2-percent increase. The economy will show positive growth of 1.6 percent in 2010,” the statement said.

• Nazarbayev says he is eager to supply oil for BTC pipeline Kazakh President Nursultan Nazarbayev gathered with a small group of Turkish journalists last week in Astana ahead of his upcoming official visit to Turkey. • Russia, Kazakhstan, Belarus to start customs union on Jan. 1 Russia, Kazakhstan and Belarus will launch their Customs Union on January 1, 2010, Russian Foreign Minister Sergei Lavrov said on Friday. • Kazakhstan ready for BTC Kazakhstan positioned itself as a potential supplier to the Baku-Tbilisi-Ceyhan oil pipeline ahead of a meeting in Ankara with Turkish officials. Kazakh President Nursultan Nazarbayev hailed the bilateral ties between his country and Turkey, saying he would like to expand cooperation in the energy sector, Turkish daily Today's Zaman reports.


• Kazakhstan and Russia to seal agreement on parallel operation of the energy systems by yearend

By the end of this year Kazakhstan and Russia will have signed an agreement on parallel operation of their energy systems, Kazakh Minister of Energy and Mineral Resources Sauat Mynbayev told last Friday press conference in Astana after the 13th meeting of the Kazakh-Russia governmental commission.

Social Front • Kazakh court rejects jailed activist's appeal A Kazakh court on Tuesday rejected an appeal by a human rights activist who was jailed last month over a road accident in a trial criticised by rights campaigners as politically motivated."Leave the sentence... unchanged," judge Yerkhan Totybai-tegi said in court

Kyrgyzstan Political Front

• Bakiyev reshapes Kyrgyzstan's Government to suit His Interests The resignation of the Kyrgyz Prime Minister Igor Chudinov on October 19 and, consequently the entire government should not be confused with any attempt to reform the country’s political system • Kyrgyzstan launches large-scale government reform Kyrgyzstan launches a large-scale reform of all governmental bodies. As the news agency 24.kg earlier reported, the republican meeting of leaders of all ranges under chairmanship of the Kyrgyz president will take place in the White House on Tuesday • Social Democrats support new PM’s structure of government Social Democratic fraction of Kyrgyzstan supported structure of the government, suggested by the new prime minister of the republic on Wednesday. The fraction congratulated Daniyar Usenov on his appointment to the post, voiced approval of his candidacy and wished success. • New cabinet to respect opposition views, new PM says The newly-appointed Prime Minister of Kyrgyzstan, Daniyar Usenov, said the new cabinet would respect the opposition’s views.

Geo Strategic Front • Kyrgyzstan partially seals border with Tajikistan Separate parts of Kyrgyz-Tajik border have been sealed, public relations department of the Kyrgyz Border Service reported. Batken border unit tightened security on the state border following penetration of armed criminals from the territory of Tajikistan. • Two alleged Hizb ut-Tahrir activists held in Kyrgyzstan Two alleged activists of the banned extremist party of Hizb ut-Tahrir were held in the Chui oblast of Kyrgyzstan, press service of the Kyrgyz Interior ministry reported.

Economic/Energy Front • Swiss government invests in trade promotion in Kyrgyzstan The government of Switzerland allocates funds for promotion of trade in Kyrgyzstan, the Swiss Agency for Development and Cooperation reported.

Social Front




The board (Shuro) of Tajikistan’s lower chamber (Majlisi Namoyandagon) of parliament considered a bill requiring amendments to the Constitutional Law “On the Government of the Republic of Tajikistan” at an October 19 meeting presided over by its speaker • President signs number of laws adopted by parliament this year On Saturday October 17, President Emomali Rahmon signed a number of laws adopted by the parliament over the past several months, according to presidential press service.

Geo Strategic Front • Zarifi receives Russian deputy foreign minister Saydullo Khairulloyev, Chairman of the Majlisi Namoyandagon (Tajikistan’s lower chamber of parliament), today received Kazakhs Ambassador to Tajikistan Abutalibp Akhmetov. • Tajik speaker, Kazakh envoy discuss cooperation issues On Monday October 19, Foreign Minister Hamrokhon Zarifi met here with Mr. Thierry Mariani, Special Envoy of France for Afghanistan, Pakistan and Central Asia • Tajik FM, France’s envoy for Afghanistan and Pakistan discuss the present

situation in Afghanistan President Emomali Rahmon is departing for Moscow for a three-day visit tomorrow, according to presidential press service. Tajik leader will visit Moscow and St. Petersburg and hold talks with high-ranking Russian state officials to discuss cooperation issues. • President Rahmon departs for Moscow for three-day visit tomorrow Saydullo Khairulloyev, Chairman of the Majlisi Namoyandagon (Tajikistan’s lower chamber of parliament) today met with the U.S. Ambassador to Tajikistan, Kenneth E. Gross. • Tajik speaker, U.S. ambassador discuss cooperation issues Resident of Russia Dmitry Medvedev and the President of Tajikistan Emomali Rahmon signed a joint statement in Moscow, Itar-Tass reports • Medvedev, Rahmon adopt joint statement On Thursday October 22, the Resident of Russia Dmitry Medvedev and the President of Tajikistan Emomali Rahmon signed a joint statement in Moscow, Itar-Tass reports. The two leaders have charged co-chairmen of the Tajik-Russian intergovernmental commission for economic cooperation • No problems with Russian military base in Tajikistan, says Russian defense

minister There are no problems with Russian military base deployed in Tajikistan and the sides are currently discussing the issue of payment for the use of a military in Tajikistan only starting from 2014, Russian Minister Anatoly Serdyukov told reporters in Moscow on October 22.

Economic/Energy Front



On Friday October 16, the first deputy head of Tajikistan’s Chamber of Commerce and Industry, Odil Sangov, met with visiting Iranian delegation, led Hamid Ali Mobaraki, vice-governor of Iran’s Sistan-Beluchistan province, and Mohammad Nishati, the head of the Chamber of Commerce and Industry of this province, according to the CCI press service. • Tajikistan tops CA states in economic use of water, says minister Tajikistan tops Central Asia’s states in terms of economic use of water, Minister of Land Reclamation and Water Resources Said Yoqubzod announced at a news conference in Dushanbe on October 16. • Tajikistan exports 3.763 bln kWh of electricity in Jan-Sept 09 Electricity and cotton fiber remain main items of Tajikistan’s exports. In January-September this year, Tajikistan has exported 3.763 billion kWh of electricity for 55.9 million U.S. dollars, according to the State Committee for Statistics.

Social Front • Tajikistan begins Central Asia's Biggest Mosque The mosque will hold 150,000 worshippers when completed On what now looks like an enormous car park in Tajikistan's capital, Dushanbe, work has begun on a gigantic new mosque. • Corruption costs Tajikistan at some 56 mln somoni in Jan-Sept 09 In a report released at a press conference in Dushanbe, Director of the Agency for State Financial Control and Combating Corruption Fattoh Saidov revealed on October 15 that according to findings by the anticorruption agency, corruption has cost Tajikistan at some 56 million somoni over the first nine months of this year. • Third international human rights documentary festival comes to Khujand The Third International Human Rights Documentary Festival started at the Faculty of Art of Khujand State University on October 16


• Turkmenistan denies entry to Peace Corps The reclusive Central Asian nation of Turkmenistan has denied entry to dozens of Peace Corps volunteers, the organization’s country director said Friday. Turkmenistan denies entry to Peace Corps Isolated Turkmenistan denies entry to Peace Corps volunteers

• New border crossing checkpoint opens on Turkmen-Uzbek border in Farap district

A new Turkmen border crossing checkpoint called Farap, which is located in the territory of Farap district on the border with Uzbekistan, was ceremonially opened in the city of Turkmenabat. This state-of-the-art facility meets international standards and has all necessary conditions for the efficient work of staff and quality of border-crossing operations, including luggage and vehicles examination. • Turkmen president receives Russian interior minister


On October 19, President Gurbanguly Berdimuhamedov received Minister of Internal Affairs of Russia Rashid Nurgaliyev, who is in Turkmenistan on a working visit. "The meeting was very constructive. • Russian Minister of Internal Affairs Rashid Nurgaliyev arrives in Turkmenistan Minister of Internal Affairs of Russia Rashid Nurgaliyev arrived in Turkmenistan on a visit. During the visit, the head of the Russian Interior Ministry will hold bilateral talks with his Turkmen counterpart Isgender Mulikov. • Ministers of Internal Affairs of Turkmenistan and Russia sign protocol on

cooperation for 2010-2011 Minister of Internal Affairs of Turkmenistan Isgender Mulikov and his Russian counterpart Rashid Nurgaliyev, who arrived in Ashgabat on a working visit, signed a Protocol on Cooperation between the two ministries for 2010-2011.

Economic/Energy Front • Turkmenistan: New Pipeline to start Pumping Gas to Iran on December 20 Turkmen gas exports to Iran via a new pipeline are slated to begin on December 20. According to Iranian news sources, northern Iran will receive gas supplies originally earmarked for purchase by the Russian energy giant Gazprom." • Turkmen president sacks several energy chiefs - The president of resources-rich Turkmenistan has sacked several top officials in the energy sector, denouncing their “irresponsible approach” to their jobs, the official news agency reported. • Turkmenistan and Astrakhan region to continue expansion of trade and economic

ties Astrakhan Region is interested in purchasing agricultural products from Turkmenistan and products of its processing, as well as increasing purchases of various construction materials, said Governor of Astrakhan Region Alexander Zhilkin during a meeting with Turkmen President Gurbanguly Berdimuhamedov on October 15. • Turkmen President, head of Gazprom hold talks Turkmen President Gurbanguly Berdimuhamedov received Chief Executive of OAO Gazprom Alexei Miller in Ashgabat on October 19. During the meeting, they discussed issues of long-term strategic cooperation in the gas sphere. • Ministry of Trade and Industry of Tatarstan discusses cooperation with

Turkmenistan Promising areas of cooperation with Turkmenistan were discussed yesterday during a meeting with Plenipotentiary Representative of Tatarstan to Turkmenistan Kamil Galiyev at the Ministry of Trade and Industry of the Republic of Tatarstan. Turkmen President Gurbanguly Berdimuhamedov received Chief Executive of OAO Gazprom Alexei Miller in Ashgabat on October 19. • Turkmenistan completes construction of its section of pipeline to China According to the state concern Turkmengaz, Turkmenistan has completed building its secion of the international gas pipeline Turkmenistan - Uzbekistan - Kazakhstan - China with a total length of more than 7000 km. The new 188-km gas artery with a diameter of 1420 mm connected the Malay gas field with the beginning of the TransAsian gas pipeline on the Turkmenistan-Uzbekistan border, creating a unified gas transportation corridor..


Social Front • Traditional exhibition of economic achievements of Turkmenistan kicks off in

Ashgabat The Exhibition of Economic Achievements of Turkmenistan dedicated to the 18th anniversary of Turkmenistan's independence started at Sergi Kosgi Exhibition Center in Ashgabat. Uzbekistan Political Front

• Preparations for the elections: consistent work is carried out On October 20, the press center of the Central Election Commission of Uzbekistan held a regular press conference for domestic and foreign journalists. Chairman of the Central Election Commission M. Abdusalomov informed journalists about the work on the formation of electoral districts, the formation of district electoral commissions for the elections of deputies of Legislative Chamber of Oliy Majlis of the Republic of Uzbekistan and the admission of political parties to participate in the forthcoming elections. • Parties approved for participation in elections The Central Election Commission of Uzbekistan considered the applications and other documents of the country’s political parties regarding their participation in the December elections to the Legislative Chamber of the Oliy Majlis of Uzbekistan. • Election Commission holds session The Central Election Commission of Uzbekistan held a session on 16 October, chaired by the head of the commission Mirzo-Ulugbek Abdusalomov.

Geo Strategic Front • Uzbekistan: European Union looks Likely to lift Arms Embargo The European Union appears poised to lift its four-year arms embargo against Uzbekistan. EU officials say strategic necessity is exerting pressure on Brussels to fully engage Tashkent. • New border crossing checkpoint opens on Turkmen-Uzbek border in Farap

district A new Turkmen border crossing checkpoint called Farap, which is located in the territory of Farap district on the border with Uzbekistan, was ceremonially opened in the city of Turkmenabat. • President of Uzbekistan receives Indian Foreign Minister President of Uzbekistan Islam Karimov received Indian Foreign Minister Somanahalli Krishna in Tashkent on 23 October. • Council of SCO Anti-Terrorist Structure holds session The Council of the Regional Anti-Terrorist Structure (RATS) of the Shanghai Cooperation Organization (SCO) held its 15th session in Tashkent on 16 October. The representatives of Kazakhstan, China, Kyrgyzstan, Russia, Tajikistan and Uzbekistan participated in the session

Economic/Energy Front • International industrial fair and cooperation exchange continues in Tashkent

Uzbekistan Industrialists Forum, carried out at the initiative of President Islam Karimov, aims to promote the real sector enterprises to provide free access to necessary raw


materials and credit resources, facilitate the creation of market infrastructure to build and expand long-term business relationships based on intra and inter-sectoral cooperation.

• IMF commends economic policy of Uzbekistan The mission of the Executive Directors of the International Monetary Fund (IMF), which consisted of Meg Landseyger, Agee Bakker, Amboise Faiola, Ho Jian Xiong, Thomas Moser and Klaus D. Stein, following the visit to Uzbekistan, held a press conference for local and foreign journalists, • Uzbekistan’s GDP grows 8% in Jan-Sep The gross domestic product of Uzbekistan showed an 8% growth in the first nine months of 2009, it was announced at the session of the Cabinet of Ministers on 16 October.

Social Front • Week of beauty and elegance During Independence years under the leadership of President Islam Karimov extensive work on the development of national culture and art, creating the necessary conditions to familiarize them with the best samples, the effective activity of representatives of these areas is conducted.

Detailed Report Azerbaijan Political Front

• Azerbaijan Democratic Party refuses to participate in municipal elections Azerbaijan Democratic Party refused to participate in the municipal elections to be held on on Dec. 23. The party’s press office said the decision was passed at the extraordinary meeting of the ADP Management Board. ADP issued a statement about it. According to the statement, the party members will put forward their candidacy on their own initiatives. The statement says that the official status of the municipalities is not line with the European Charter of Local Self-Government, the role and authorities of municipalities is restricted, citizens are not interested in the local elections because of the imperfect election experience.“ADP expresses its regret that it will not participate in the local elections together with the other political parties because of the crisis in the Movement for Karabakh and Republic. ADP does not consider it expedient to participate in the elections as a party, as there are serious technical difficulties in the Electoral Code concerning the participation as a party," the party said. So, to increase political activeness in the country, involve the citizens in the political life of the society the party passes a decision on individual participation in the local elections and calls on its members and supporters to take active part in the forthcoming local elections,” the party said.

• Azerbaijan’s opposition party nominates candidates for municipal elections Azerbaijan Liberal Democratic Party (ALDP) has held its next meeting, ALDP chairman Fuad Aliyev said. He said the meeting discussed the participation of LDPA in the upcoming municipal elections to be held on Dec. 23."LDPA at a high level preparing to participate in municipal elections and is currently conducting educational work among the candidates. Party has identified a list of candidates. It is envisaged that the elections will involve 1,000 candidates from the party,” he said. LDPA chairman also said the party plans to hold meetings in country’s regions soon.

• A total of 915 people nominated for municipal elections in Azerbaijan


The district election commissions have approved 915 candidates for municipal elections so far in Azerbaijan. The lists for the collection of signatures were provided to 765 of them, the Central Election Commission said. Azerbaijan will hold municipal elections on Oct. 23.

• Azerbaijani parliament to debate Turkey-Armenia protocols The Azerbaijani parliament will debate the Turkey-Armenia protocols. "I and my counterparts who have just returned from Turkey will put forward proposals to prevent discussion of the protocols signed at the Turkish parliament," Member of the Azerbaijani Parliamentary Security and Defense Committee Zahid Oruj said.Oruj said appeal to the Turkish parliament will depend on the discussions."Azerbaijan takes certain diplomatic actions. I believe we can use different influence tools," the parliamentarian said. Oruj added that they should not only discuss the policy pursued to normalize relations between Turkey and Armenia, but also regional issues."We should determine profit and losses of Azerbaijan in these processes, because Azerbaijan's future is too important as a result of a change in a power balance in the region. Exchange of views should be held on this issue, as the parliament as a legislative body is a branch of the government," Oruj added.

• Azerbaijani opposition faces difficult situation: leader of opposition movement Leader of the Azerbaijani opposition movement admits that the opposition faces a very difficult situation. "It is necessary to maintain the unity in a situation when our resources are extremely limited," Leader of the National Unity Movement (NUM) Lala Shovkat said. Musavat Party, represented in the Movement for Karabakh and Republic, has put condition before the Umid Party that the latter must withdraw its representatives from the election commissions. Umid Party stated that it will fulfill this requirement if members of Musavat group of MPs give up their mandates. The difference between the two parties caused serious crisis within the movement. Shovkat said it is not right time for the parties represented in the Civil Movement for Karabakh and the Republic to set conditions to each other."When establishing the movement, we took as a basis the fact that the situation developed around the Nagorno-Karabakh conflict is not in Azerbaijan's favor. Karabakh is our national problem and in the current period, I'm against the collapse of the movement connected with Karabakh," Shovkat added. The position of the government and opposition on the Karabakh problem should be the same, she added."In such situation the movement should collapse. I strongly appealed Musavat party and Umid party to refrain from conditions and to compromise each other," Shovkat said. Shovkat expressed regret that unions established by the Azerbaijani opposition are short-term in nature. "I do not want to bring an accusation against any particular party, which played a role in the decay of these unions. But we cannot allow the movement connected with Karabakh to collapse in the current period. I once more appeal Musavat and Umid to come to a compromise. Otherwise, the activity of the movement will be suspended. There is no need to keep the movement if the two parties, which are the founders of the movement, cannot find a common language," Shovkat added. Geo Strategic Front

• Azerbaijan president receives chief of Iranian presidential office President of Azerbaijan Ilham Aliyev received head of the Iranian Presidential Office Esfandiar Rahim Mashaie on Oct. 15. President Ilham Aliyev stressed the importance of the visit for discussing current state and prospects of bilateral relations between the two countries. The President stressed Azerbaijan and Iran enjoy successful cooperation in


various fields. President Ilham Aliyev said he believes “the visit and meetings you will hold during it will contribute to strengthening cooperation between our countries”. Mashaie conveyed Iranian President Mahmoud Ahmadinejad `s greetings to the Head of State. He also presented Mahmoud Ahmadinejad `s letter to President Ilham Aliyev. President Ilham Aliyev asked Mashaie to deliver his greetings to the Iranian leader. Azerbaijan's growing role in the region and world will never enable Armenia to withdraw from the isolated situation.

• Azerbaijan's growing role in region and world will never enable Armenia to move away from isolation: Azerbaijani president

President of Azerbaijan Ilham Aliyev on Friday presided over a meeting of the Cabinet of Ministers on the outcomes of socio-economic development for nine months of 2009. In his opening remarks, the President said Azerbaijan’s economy had developed successfully through nine months of the current year. Despite the global financial crisis and economic regression in many world countries, our national economy did not face the crisis seriously, on the contrary, we watch positive tendencies in rise of economy, the President noted. The President pointed out gross domestic product (GDP) increased by 6, 1 percent, while industrial production grew 5 percent in the country through nine months of the year. He stressed the agricultural sector in the country saw 3 percent increase. The President also noted “this year for the first time three million tons of grain have been produced in Azerbaijan”, and described this figure as a record. The Head of State linked this to the ongoing reforms in the country`s agricultural sector. President Ilham Aliyev said the population`s incomes have raised approximately by 10 percent while monthly wages increased by 15 percent. “We are completely sure that our policy serves the Azerbaijani people`s interest”. According to the President, 824 thousand work places have been created in the country since 2003. He underscored through the period, works on army building had been continued. He said Azerbaijan`s army is the most powerful one in the region and has the greatest military potential. “Because our country has been under the war conditions, the Nagorno-Karabakh conflict still remains unresolved and the only reason for this is Armenia`s unconstructive position”.The President said “now Armenia uses the tactics of extending time in the negotiation process,” adding “Azerbaijan does not intend to step back from its principal stance”. “The status-quo in the region must change in favor of Azerbaijan, otherwise the country will not reconcile with the situation. Because without Azerbaijan's participation, no initiative can be realized in the region,” the President said. "Azerbaijan's growing role in the region and world will never enable Armenia to withdraw from the isolated situation. The Armenian leadership is itself guilty for this. Azerbaijan will fight for its national interests till the end. Because this is a fight for justice," he said. The President`s remarks followed by reports of Minister of Economic Development Shahin Mustafayev, Minister of Education Misir Mardanov, Minister of Transport Ziya Mammadov and Minister of Industry and Energy Natig Aliyev who covered social and economic works done by their departments through nine months of 2009. In his final remarks, President Ilham Aliyev stressed the necessity of keeping the speedy economic growth in the coming months. He added the economic development in 2003-2008 creates good opportunities for the future. He expressed assurance that economic successes in the country will continue in 2010. “Our works are assessed by international organizations, as well”, the President underlined.


He pointed out the state budget for the next year had been defined in according with well-balanced economic policy with $45 per barrel oil price forecast. The Head of State also gave certain instructions on intensification of construction in the republic. He said next year ecological measures will be strengthened. The President initiated declaring 2010 the year of ecology. The Head of State expressed satisfaction with the outcomes of nine months and stressed the necessity of continuation of the work “to ensure national interests of our people”.

• U.S. Deputy Assistant Secretary of State for European and Eurasian Affairs to pay first visit to Azerbaijan

U.S. Deputy Assistant Secretary of State for European and Eurasian Affairs Tina S. Kaidanow will pay the first visit to Azerbaijan on Oct.22 -23, the U.S. embassy in Baku said. Currently Kaidanow is on visit in Yerevan where she meets with Armenian Foreign Minister Edward Nalbandian. Diplomat Tina Kaidanow replaced Matthew Bryza as U.S. Deputy Assistant Secretary of State in Aug. 2009. Economic/Energy Front

• World Bank managing director will trip to Azerbaijan The World Bank Managing Director, Ms. Ngozi Okonjo-Iweala, will arrive in Baku on Oct. 20 as part of her tour to the region, said the World Bank’s Office in Baku. She has already held meetings in Armenia and Georgia and since October 17. The aim of her visit is to discuss with the respective governments, development partners and civil society the impact of the financial crisis in the South Caucasus and to find ways to help ease the crisis and enable sustainable economic growth. The World Bank is actively engaged in helping these countries address the challenges facing them. In all three countries Ms. Okonjo-Iweala will meet with the country leadership, senior government officials, civil society and private sector representatives, and visit World Bank supported project sites. She will make a field trip to IDA Fast-Track Operation sites and meet with project beneficiaries in Armenia. As part of her program in Georgia, she will visit an IDP settlement, a road construction site and a primary healthcare facility. In Azerbaijan, she will co-chair a high level Economic Policy Forum, visit a cultural heritage site and meet with women leaders.

• Interconnection of Azerbaijani, Iranian and Russian energy systems is under a design stage: Azerenergy chief

Overhaul of 500 kV electricity transmission line between Azerbaijan and Georgia will complete in 2010-2011, head of Azerenergy Etibar Pirverdiyev said on Oct. 20. "At present, there is a 330 KV transmission line between the two countries, which does not ensure export-import operations sufficiently," said Pirverdiyev.He said a number of projects should be implemented in the territory of Georgia, after which it will be possible to export electricity produced in Azerbaijan to Turkey. Pirverdiyev said the process of interconnection of energy systems of Azerbaijan, Iran and Russia is under a design stage. "The issue of a united power system among the three countries is technically difficult. It is not difficult to create a system with Iran. The difficult is a united power system of the three countries," he said. Electricity transmission system in Russia - in the territory of Dagestan is weak, there is only one 330 KV power transmission line. At present, the energy exchange between Azerbaijan and Russia continues."The surplus is on the side of Azerbaijan," said the head of Azerenergy. He said the construction of the electricity transmission lines between Azerbaijan and Iran should finish soon.


• Assets of State Oil Fund of Azerbaijan increases almost 20 percent in 2009 Budget revenues of the State Oil Fund of the Republic of Azerbaijan (SOFAZ) reached 5 465.2 million manats in January-September, 2009, while budget expenditures constituted 3 954.1 mln. manats, SOFAZ executive director Shahmar Movsumov said to press conference on outcomes of the nine months. Revenue of 5 191.6 mln. manats was received from implementation of oil and gas agreements, including 5 107.2 mln. manats from the sale of profitable oil and gas, 6.8 mln. manats as transit payments, 75.6 mln. manats from state share in the Heydar Aliyev Baku-Tbilisi-Ceyhan (BTC) Main Export Pipeline, 1.1 mln. manats as acreage payments, 0.8 million manats as bonus payments and 0.1 mln. manats from sale of assets received from foreign companies. The revenues from managing assets of the Fund for the reporting period amounted to 273.6 mln. manats. The Fund's extra-budgetary revenues related to the revaluation of foreign exchange totalled 218.4 million manats. As per 2009 budget of the Fund, 3 685.0 mln. manats were transferred to the state budget. The expenditures in the amount of 69.6 mln. manats were directed to financing of improvement of social condition of refugees and internally displaced persons, 92.4 mln. manats and 94.1 mln. manats were accordingly used for financing the reconstruction of the Samur-Absheron irrigation system and financing construction of the Oghuz-Gabala-Baku water supply system. 4.1 mln. manats were directed to financing Baku-Tbilisi-Kars railway and 3.2 mln. manats to financing "The state program on the education of Azerbaijan youth abroad in the years 2007-2015". The Fund's administrative and operational expenses in this period were 5.7 mln. manats. According to Movsumov, the assets of SOFAZ as at October 1, 2009 has grown by 19.24 % compared to the beginning of the year and stood at 10 716.2 mln. manats (USD 13 337.5 mln.).

• Azerbaijani Central Bank director announces inflation forecast for 2010 Anticipated rate of inflation for 2010 is 3 to 5 percent in Azerbaijan. It is not ruled out that this figure will fall to even lower levels, Central Bank Director Elman Rustamov said on Oct. 21."There will be stable inflation at low level in Azerbaijan in 2010, that is, 3-5 percent or lower level is possible as we will continue discussions on this forecast," Rustamov said. He said according to WB forecasts, inflation will total 2-2.5 percent in Azerbaijan by late 2009. "We will maintain inflation at the same level in future," Rustamov added. Social Front

• Azerbaijani 9-year pupils to take centralized exams: education minister 9-year pupils will take the centralized examinations in Azerbaijan. "This year, for the first time, the Education Minister will organize centralized examinations for 9-year pupils," Education Minister Misir Mardanov told reporters. In 2008, the centralized exams will be held at secondary schools of Baku, Sumgayit, Ganja, Shirvan and Mingachevir cities of Azerbaijan, as well as, in Ujar, Imishli and Ismayilli regions of the country.

• Azerbaijani president decrees to establish Science Development Fund President Ilham Aliyev decreed on establishment of Science Development Fund under the President of the Republic of Azerbaijan to ensure stimulation of fundamental scientific researches in Azerbaijan, strengthen exploration of the country`s natural resources and cultural and historical heritage, increase effectiveness of researches in various spheres of science and represent Azerbaijan`s science worthily among the world scientific community. On another Presidential Decree, Elchin Safaralı Babayev was


appointed executive director of the Science Development Fund under the President of the Republic of Azerbaijan. Kazakhstan Political Front

• President of Kyrgyzstan names new prime minister President of Kyrgyzstan Kurmanbek Bakiev has signed a decree to appoint Daniyar Usenov to the prime minister's post, after a solid vote of the major parliament fraction supported his candidacy, "24.kg" news agency reported. The new prime minister is expected to form a new government later today.

• Kazakhstan Court rejects Jailed Journalist's Appeal A Kazakhstani court on Thursday upheld a three-year prison sentence for a journalist in a case that has sparked international criticism from rights groups, ahead of Kazakhstan's chairmanship of a European human rights body. Ramazan Yesergepov, the owner and editor of the Alma Ata Info newspaper, was arrested in January for divulging state secrets, after publishing a letter he said revealed links between a businessman and the country's National Security Committee (KNB). Rights campaigners are questioning the credibility of the Central Asian state as next year's chairman of the Organisation for Security and Cooperation in Europe (OSCE), a security and human rights body. Earlier on Thursday, the United States criticised a tough sentence for a Kazakhstani human rights activist. Yesergepov had challenged an August verdict sentencing him to three years in jail."Unfortunately, the court has upheld an earlier verdict," his wife Raushan Yesergepova told Reuters by telephone from the city of Taraz, 500 km (300 miles) southwest of Kazakhstan's financial capital Almaty, where the trial had taken place. Following Yesergepov's initial conviction, the OSCE representative on freedom of the media urged Kazakhstan to overturn the sentence, saying it violated international standards and OSCE commitments on media freedom. Kazakhstan has also come under fire for jailing prominent human rights activist Yevgeny Zhovtis, who killed a pedestrian on a highway in July. Zhovtis' supporters say the trial, which led to a four-year prison sentence, was politically motivated, and had not allowed Zhovtis to mount a proper defense and prove he was unable to prevent the accident, according to Reuters.

• Kazakhstan opposition calls for social justice at a meeting in Astana Astana. October 19. Interfax-Kazakhstan – A block of opposition forces For a Just Kazakhstan (FJK) held an authorized meeting demanding social justice."This protest campaign iss held to draw attention to the crisis in the social sphere that adversely affect the health of the nation and income of every resident,” head of Astana branch of the Communist Party of Kazakhstan in Astana Tota Yelyubayeva said at the meeting. The protesters, a total of 300 people, bearing slogans “Fight for social justice ” and “No to social genocide!" urged Kazakhstan residents to fight against corruption and disregard of the law by state officials and courts, and demand the authorities to take steps to enhance social protection and welfare of residents. The meeting joined by the National Social and Democratic Party (NSDP), the Azat Party (Freedom) and the Alga! Party (Go Ahead!) spoke about the problems of co-investors in housing construction, utility prices and public transport fees. FJK announced plans to organize a series of such meetings in all regions of the republic. As reported, in June the National Social and Democratic Party (NSDP) and the Azat Party (Freedom) announced their intent to revive the bloc “For a Just Kazakhstan” on the


terms of co-chairing the organization. The Alga! Party (Go Ahead!) stepped aside. Recently NSDP and Azat announced their plans to merge into a single party. The leader of NSDP called on the other opposition parties to join the new organization Geo Strategic Front

• Khalifa on visit to Kazakhstan Sheikh Khalifa bin Zayed, President of the UAE and Ruler of Abu Dhabi, this week began a private visit to Kazakhstan that will last several days. He was seen off by Sheikh Mohammed bin Rashid, Vice President of the UAE and Ruler of Dubai, Sheikh Sultan bin Zayed, Representative of the President, Sheikh Mohammed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, and several sheikhs and senior officials.

• Kazakhstan not a nuclear threat, official says A US intelligence report on concerns about Kazakhstan's nuclear deals is misleading, said the Kazakh government Monday. A Kazakhstan government official says that, contrary to recent reports, his country is not looking to do nuclear deals with countries that have a mixed record on proliferation. Roman Vassilenko, chairman of the Committee for International Information at Kazakhstan's Ministry of Foreign Affairs, says that his country does see itself as a potential nuclear power – but a "peaceful and responsible" one that has no interest in nuclear weapons or nuclear commerce with potential proliferators. On October 15, The Christian Science Monitor published an article on a US intelligence report that expressed concerns about the geopolitical implications of some of Kazakhstan's nuclear deals. Both the article and the report "seem utterly misleading", says Mr. Vassilenko. Kazakhstan, formerly part of the Soviet Union, returned 1,000 nuclear weapons soil to Russia following the dissolution of the USSR. It shut down a former weapons test site where the Soviets detonated 650 nuclear bombs, points out Mr. Vassilenko in an e-mailed response. "Kazakhstan has clearly seen enough of nuclear horrors to be firmly committed to peaceful nuclear energy," he says. Under a US government covert operation named "Project Sapphire," Kazakhstan handed over half a ton of weapons-grade uranium to the US, for down-blending it into a form useful for civilian purposes. Kazakhstan "politically stable" and "dynamically developing", says Vassilenko. It is indeed planning to build more nuclear power plants, but all will be fully under International Atomic Energy Agency (IAEA) safeguards, he adds. President Nursultan Nazarbayev has offered to host an international nuclear fuel bank under IAEA auspices – an offer the US has officially welcomed. "If all that is not a vote of confidence, then I don't know what is," says Vassilenko.

• President of Romania to pay official visit to Kazakhstan Astana. October 19. Kazakhstan Today - The President of Romania, Trajan Basesku, will pay an official visit to Kazakhstan next week. The official representative of the Ministry of Foreign Affairs of Kazakhstan, Yerzhan Ashikbayev, informed at a weekly briefing in the Ministry for Foreign Affairs of Kazakhstan, the agency reports. "The President of Romania, Trajan Basesku, will pay an official visit to Kazakhstan on October 26 - 27, 2009," Y. Ashikbayev informed. "During the visit, the Romanian leader will hold meetings with the leadership of Kazakhstan to discuss a wide range of questions of bilateral cooperation within the


international organizations and associations." "Following the results of the negotiations, the officials are expected to sign some bilateral documents." Economic/Energy Front

• Kazakhstan willing to pump Oil into Pipeline via Turkey Kazakhstan's president confirmed Thursday that his country is willing to pump crude into a planned $1.5-billion pipeline, to bring Caspian oil to the Mediterranean via Turkey. Addressing Turkey's parliament, Nursultan Nazarbayev said: "We along with Russia are ready to join the Samsun-Ceyhan oil pipeline project." His statement came after a video conference between St. Petersburg and Ankara earlier on Thursday, when Russian Prime Minister Vladimir Putin told his Turkish counterpart, Tayyip Erdogan, of Kazakhstan's possible role." Our Kazakh colleagues have expressed readiness for joint work to fill this oil pipeline system," Putin said at the conference, also involving Italian Prime Minister Silvio Berlusconi, who met with his Russian counterpart in St. Petersburg for talks focusing on cooperation in car manufacture and agriculture. Three Russian oil companies - state-run Rosneft, oil pipeline monopoly Transneft and shipping firm Sovcomflot - signed a deal in Milan on Monday with Turkey's Calik Enerji and Italy's Eni S.p.A. on the pipeline with projected capacity of 60-70 million metric tons a year (1.2-1.4 million bbl/d) Russian Deputy Prime Minister and Rosneft chairman Igor Sechin said other producers, including LUKoil, have also shown an interest in supplying oil via the pipeline. The pipeline is designed to reduce the oil transportation load on the Bosporus Strait liking the Black and Mediterranean and the Dardanelles on the Marmara Sea, which handles some 150 million tons (1.1 billion bbl) annually. The Kazakh leader said his country is willing to contribute to Turkey's drive to strengthen its role as a transit hub for oil and gas. Turkey, which sits at the energy crossroads of Russia, Europe, Central Asia and the Middle East, signed two more energy deals with Russia and the EU earlier this year, fueling concerns in Moscow and Brussels of growing dependence on Ankara. In August, Turkey allowed Russia's Gazprom to use its sector of the Black Sea for the South Stream gas pipeline to Europe, bypassing Ukraine. In July, the country signed a deal on the EU-backed rival pipeline Nabucco. Speaking to Putin and Berlusconi on Thursday, Erdogan thanked them for contribution to energy security in Turkey and Europe, according to Ria Novosti.

• Japan wants to expedite Agreement with Kazakhstan on Peaceful use of Atomic Energy

Japan ‘s Vice Minister of Economy, Trade and Industry Hiroyuki Ishige has announced Japan wants to speed up the signing of an agreement on the peaceful use of atomic energy with Kazakhstan. "Kazakhstan and Japan have negotiated on the agreement for cooperation in atomic energy. We started talks in July 2007, and we want to agree on it in the near future," said Ishige during the first session of the Joint Commission of the Private and State Sectors of Kazakhstan and Japan. The Japanese Ambassador added that the Convention on the Prevention of Double Taxation and the Agreement on the Mutual Protection of Investments are being discussed and are awaiting ratification on part of Kazakhstan, according to

• Chinese investments in Kazakh energy worry Europeans China Investment Corporation’s acquisition of a stake in KazMunaiGas Exploration Production and the opening of a pipeline linking oil-rich western Kazakhstan to the


Chinese border meant it was inevitable that China’s grasp of Kazakh natural resources would be the hot topic at this year’s Kazakhstan International Oil and Gas Exhibition Kioge week, as it is known in Almaty, also saw major deals being concluded with French and Azeri companies that will help open up western export routes. But the spotlight was on Kazakhstan’s relations with China. The previous week, on September 30, China’s sovereign wealth fund, the CIC, bought an 11% stake in London-listed KazMunaiGas EP through the purchase of around $939m of its global depositary receipts. In another important development, commercial operation of the Kenkiyak-Kumkol pipeline, part of the Kazakhstan-China Pipeline, started commercial operations ahead of schedule. The pipeline, with initial capacity of 10m tonnes of oil a year, connects the eastern and western part of Kazakhstan’s oil transport network, allowing oil to flow from the Caspian Sea to China. With oil prices hovering around $70 per barrel, speakers at the conference were already looking ahead to when demand will resume its strong upward trend as the world emerges from the crisis. In Kazakhstan, where the economy is heavily dependent on energy prices, a mood of cautious optimism has returned. The country is expected to become one of the top three non-Opec oil producers by 2030. Some 110 years since the birth of the oil industry in Kazakhstan, mega-projects such as Tengiz and Kashagan are set to boost production. State oil and gas company KazMunaiGas this year adopted an ambitious expansion programme spanning exploration, production, pipeline construction and related activities, as outlined by the company’s president, Kairgeldy Kabyldin. However, questions of how and where the oil will be exported have yet to be answered. In 2009, around 80% of total oil exports are expected to go through Russia. By 2030, the volume of oil being transported to Russia is expected to rise, but its share of total exports is expected to drop below 60%, according to research from Wood Mackenzie presented at the conference. Europe, and in particular China, are expected to increase their imports of Kazakh oil and gas. While none of the major Chinese oil companies had speakers at the conference, the Europeans were vocal in their pleas for access to Kazakh energy resources. Vaclav Bartushka, the Czech Republic’s ambassador for energy security, forcefully put the case for Central Asia to cooperate with the EU on the Southern Corridor and other energy export projects. “We have plenty to offer you and you have nothing to fear from us,” he told delegates. Asking rhetorically what the EU can offer to Central Asia when diversification has already been offered by China, Bartushka continued: “Europe has something precious to offer, that goes beyond being rich and paying our bills on time: we don’t threaten anyone, we don’t scare anyone.” Bartushka stressed that the EU is “firmly behind the Southern Corridor project,” which was echoed by Angus Miller, Caspian energy adviser at the UK’s Foreign and Commonwealth Office. Miller also advocated the idea, currently being mulled in Brussels, of creating the Caspian Development Corporation - a single company that would be mandated to buy gas on behalf of the EU member states. “This would put Europe as a buyer on the footing as CNPC or Gazprom. It’s a response to the China dilemma,” Miller said. Europe has scored some successes in Kazakhstan recently. A €1bn deal signed during French President Nicolas Sarkozy’s visit to Astana on October 2 gives Total and GDF Suez a 50% stake in the Khvalynskoye project. KazMunaiGas has also signed a set of deals with Azerbaijan’s state oil company Socar that will facilitate transport of oil across the Caspian and indicates the two companies long-term aim of linking Kazakhstan’s oil


to Azerbaijan’s oil transport systems. But China got there first. As Bartushka admitted, China started building pipelines while the Europeans were still debating routes. Julia Nanay, senior director at advisory firm PFC Energy, pointed out that China started building relationships with Central Asia’s oil-rich republics in the late 1990s. Since then, Chinese companies have taken a monopoly board approach to Kazakhstan, buying up assets when they become available. CNPC first took control of the 100,000 barrel per day Uzen oilfield back in 1997, and later completed the $4.5bn acquisition of PetroKazakhstan. In addition to these and other mega-deals by CNPC, CITIC, Sinopec and a number of smaller Chinese companies have also invested into Kazakhstan. “Chinese companies are not adverse to heavy oil fields, or put off by a lack of infrastructure. They are just building whatever is needed,” Nanay said. The most recent deal, CIC’s investment into KazMunaiGas EP, Nanay says, is a way of building its relationship with the Kazakh company and ensuring sufficient supplies to fill the new pipeline. “We think enough oil will be supplied by Gazprom and TNK-BP to fill the pipeline this year, but from 2010 it may be filled with Kazakh oil. Once they complete the MangistauMunaiGas acquisition, China will have access to more than 300,000 barrels per day.” Kazakhstan is just starting to emerge as an important player on world energy markets. For all the talk from Europe about the importance of its relation with the Caspian Sea region countries, most of the action has been from China. With Russia set to remain the primary exporter of Kazakh oil and gas, and China shooting into second place, as European representatives made abundantly clear, they will have to fight hard for a slice of Kazakhstan’s resources.

• Kazakhstan’s economy to decline 1.3 percent in 2009 - EBRD The European Bank for Reconstruction and Development (EBRD) has revised its economic growth forecast for Kazakhstan in 2009-2010, the bank said in a statement. “In 2009, Kazakhstan’s economy is expected to decline by 1.3 percent, while in 2008 it recorded a 3.2-percent increase. The economy will show positive growth of 1.6 percent in 2010,” the statement said. Earlier, EBRD predicted a decline of 2 percent.“Although this is already the third year of the banking crisis for Kazakhstan, there is light at the end of the tunnel. Some major banks have successfully restructured their debt, and we expect that growth will once again be positive next year or even later this year,” EBRD’s senior economist Ralph de Haas was quoted in the statement. Nonetheless, Kazakhstan’s financial system will need to undergo rapid development in order to reduce its dependence on foreign financing and expand its financial sector through the development of fixed income and derivative markets and private equity, according to de Haas.

• Nazarbayev says he is eager to supply oil for BTC pipeline Kazakh President Nursultan Nazarbayev gathered with a small group of Turkish journalists last week in Astana ahead of his upcoming official visit to Turkey. While hailing the current course of affairs in bilateral relations between Kazakhstan and Turkey, Kazakh President Nursultan Nazarbayev has expressed his country's willingness to supply oil to a pipeline transporting Caspian crude oil to Western markets through Turkey's Mediterranean port of Ceyhan. Nazarbayev's remarks came in Astana where he gathered with a small group of Turkish journalists last week ahead of his upcoming official visit to Turkey later this week at the invitation of his Turkish counterpart, Abdullah Gül.“Even before one hour passed after we declared our independence, your


then-president, late Turgut Özal, had directly called and congratulated me,” Nazarbayev told Turkish reporters, without being able to hide his strong emotions, speaking with a shaky voice when talking of Özal. Turkey recognized Kazakhstan on Dec. 16, 1991, on the same day Kazakhstan declared its independence. Diplomatic relations between the two countries were established in March 1992. The two sides have constantly expanded the areas for cooperation and achieved satisfactory results since the independence of Kazakhstan. Common historical and cultural ties significantly contributed to rapid development of bilateral relations and cooperation between the two countries.“Overall, Turkey and Kazakhstan are engaged in strategic cooperation both in international and regional arenas. In other words, the two countries have been supporting the policies of each other. I believe that this relationship will further increase to a higher level upon my visit,” Nazarbayev said, citing Turkish construction companies' investments in Kazakhstan, 28 Kazakh-Turkish high schools in his country and the Conference on Interaction and Confidence-Building Measures in Asia (or CICA), to which Kazakhstan and Turkey are members, as some of the concrete examples of bilateral cooperation between Astana and Ankara. “In the near future, we want to lend support to the Baku-Tbilisi-Ceyhan [BTC] pipeline,” Nazarbayev added, referring to the pipeline that currently brings crude oil from Azerbaijan's Caspian fields to Turkey's Ceyhan port via Georgia. Upon these remarks, Nazarbayev was reminded of French President Nicolas Sarkozy's visit to Astana, which took place in the first week of October. During the visit, Kazakhstan awarded a consortium of French companies a deal to take part in building a crucial $2 billion oil pipeline linking the vast Kashagan field to the Caspian. Energy supplies through the route will be transported across the inland sea by tankers to Azerbaijan and pumped by the pipeline westward to Europe, circumventing Russia. Kashagan has been hit by delays and soaring development costs and is not expected to begin production until 2012. “This is an extremely important project that will become the main artery to transport Kazakh oil to Europe,” Nazarbayev told reporters at the time. When asked by Turkish journalists whether the deal between Kazakhstan and France was retribution at the probable supply of Kazakh oil to the BTC pipeline, Nazarbayev said: “As you know, when the BTC was not yet prepared, Kazakh oil was being transferred to the Black Sea via the north Caucasus, being sent to the global market from there. But now the BTC pipeline is completed and agreements are signed between Azerbaijan and Turkey. We have made a decision to transport 10 million tons of oil to the BTC from our port-city of Aktau.” In order to transport the vast amount of oil in Kashagan field, Kazakhstan will need alternative routes, Nazarbayev added, noting that the deal with the consortium of French companies stemmed from such a need. “Five years later, the BTC pipeline itself will expose its own strategic agenda. However, there is a point that should be taken into consideration here, which is the fact that the Baku oil will be diminished five years later. And in this situation, there will be more need for Kazakh oil in the BTC pipeline,” he said. Critics say the BTC pipeline, launched in 2005, would lose its economic profitability if it is not supplied with oil from Kazakhstan. “We will start drilling oil in Kashagan in 2013, and the total amount of annual reserve of this oil will reach 120 tons. That's why we need new corridors and new routes. One of these routes is the Samsun-Ceyhan route via the Black Sea and the oil refinery to be built in Ceyhan; we want to take part in the construction of this refinery,” Nazarbayev said. In response to a question, the


Kazakh president said a resolution of the Nagorno-Karabakh conflict would shorten the distance through which Kazakh oil would be transported to the BTC pipeline. Nazarbayev is scheduled to arrive in Turkey on Wednesday for a four-day official visit. While in Ankara, in addition to holding talks with Gül, Nazarbayev will also address Parliament. The Kazakh president, who will be accompanied by 200 businesspersons, will discuss bilateral relations and cooperation in tourism, education, trade and industry with Turkish officials. He will also attend the Turkish-Kazakh Business Forum, which will be held in İstanbul. Kazakhstan is an important economic partner of Turkey, and cooperation between the Turkish and Kazakh authorities has played a major role in the development of Kazakhstan. Earlier this month, a memorial for the founder of the Turkish Republic, Mustafa Kemal Atatürk, was inaugurated in Astana at a ceremony with the participation of Nazarbayev. “The inauguration ceremony of the Atatürk Memorial in Astana is considered to be a sign of the satisfactory level of cooperation and the friendly and brotherly relations between Turkey and Kazakhstan emanating from our common history, and all the efforts of the Kazakh side in this respect are greatly appreciated by the Turkish side at all levels,” the Foreign Ministry said at the time in a written statement.

• Russia, Kazakhstan, Belarus to start customs union on Jan. 1 MOSCOW, October 16 (RIA Novosti) - Russia, Kazakhstan and Belarus will launch their Customs Union on January 1, 2010, Russian Foreign Minister Sergei Lavrov said on Friday. The three post-Soviet countries agreed in early June to form a customs bloc. Its Customs Code will be presented for approval to the heads of the three states in November. Unified customs regulations are due to come into effect at the start of 2010. "The customs union is ready to begin its work, and is due to be launched on January 1," the minister said during an interview with RIA Novosti, the Russia Today TV channel and The Voice of Russia radio station. "The Customs Union is here to stay and we will soon benefit from it," Lavrov said. The three countries earlier announced that they would seek to join the World Trade Organization simultaneously, with a joint bid through their Customs Union. Russia's chief WTO negotiator, Maxim Medvedkov, said the date of the next round of talks on joining the global trade body would be made by chairmen of the three countries' working groups following consultations with the WTO members. "We expect the decision to be made by the end of this year. The necessary materials will be submitted to the WTO in the next two or three weeks," he said. Kyrgyzstan has said it would also like to join the union.

• Kazakhstan ready for BTC Kazakhstan positioned itself as a potential supplier to the Baku-Tbilisi-Ceyhan oil pipeline ahead of a meeting in Ankara with Turkish officials. Kazakh President Nursultan Nazarbayev hailed the bilateral ties between his country and Turkey, saying he would like to expand cooperation in the energy sector, Turkish daily Today's Zaman reports. "In the near future, we want to lend support to the Baku-Tbilisi-Ceyhan pipeline," he said. A conflict between Russia and Georgia over the breakaway republics of South Ossetia and Abkhazia in August 2008 complicated transits through BTC. The current capacity is 1 million bpd. Observers point to Kazakh oil as a vital resource for the viability of BTC. Nazarbayev said his country would start production at its massive Kashagan field in 2013. "That's why we need new corridors and new routes," he said. He pointed to a recent deal with French companies to build a $2 billion oil pipeline to link his country to the


Caspian Sea. Development is expected on that project in 2012, though Nazarbayev said it was an "extremely important" project to transport Kazakh oil to European markets. Nazarbayev is expected in Ankara later this week.

• Kazakhstan and Russia to seal agreement on parallel operation of the energy systems by yearend

Astana. October 19. Interfax-Kazakhstan – By the end of this year Kazakhstan and Russia will have signed an agreement on parallel operation of their energy systems, Kazakh Minister of Energy and Mineral Resources Sauat Mynbayev told last Friday press conference in Astana after the 13th meeting of the Kazakh-Russia governmental commission. The agreement will also deal with such issues as power redundancy of the two countries’ grids, payments and electricity transmission, he remarked. As reported, in September this year Russian President Dmitry Medvedev told the regional cooperation forum in Orenburg that Russia and Kazakhstan should speed up preparation of agreements to ensure parallel operation of their power grid. "The tragic accident that occurred at the Sayano-Shushenskaya hydropower plant made it particularly urgent to ensure parallel operation of the power grids, and I believe it would be right for us to prepare documents approving these positions on a compromise basis as quickly as possible. I think all matters could be solved within a one-month period," said Medvedev at the forum. Kazakh President Nursultan Nazarbayev said in Orenburg that Kazakhstan could provide electricity supplies to regions in Siberia affected by the August 17 accident at the Sayano-Shushenskaya Hydroelectric Power Plant. "It is possible to provide aid in power supplies in connection with the accident at the Sayano-Shushenskaya HPP, not only coal but electricity. As I've been told, about 500 megawatts of electricity," Nazarbayev said. The accident at the Sayano-Shushenskaya HPP on August 17 led to the complete or partial destruction of nine hydropower units out of ten and more than 70 human casualties. Currently, Russia's biggest hydropower plant is shut down. Restoring it could take three or five years and could cost 40 billion rubles. Social Front

• Kazakh court rejects jailed activist's appeal ALMATY (Reuters) - A Kazakh court on Tuesday rejected an appeal by a human rights activist who was jailed last month over a road accident in a trial criticised by rights campaigners as politically motivated."Leave the sentence... unchanged," judge Yerkhan Totybai-tegi said in court. Activist Yevgeny Zhovtis was sentenced to four years in prison last month after his car hit a pedestrian who then died. Rights groups said he was denied the right to present a proper defence at the trial. Kazakhstan's human rights record has come under close scrutiny this year because the ex-Soviet nation will take over the rotating chairmanship of the Organisation for Security and Cooperation in Europe (OSCE) in 2010. Kyrgyzstan Political Front

• Bakiyev reshapes Kyrgyzstan's Government to suit His Interests The resignation of the Kyrgyz Prime Minister Igor Chudinov on October 19 and, consequently the entire government should not be confused with any attempt to reform the country’s political system. President Kurmanbek Bakiyev has indeed promised to change the way Kyrgyzstan’s government functions in order to eliminate corruption and promote more efficient decision-making. Nonetheless, recent changes indicate his wish to


maximize his power over the government. The collective resignation was masterminded beforehand, with members of parliament ordered to support the new Prime Minister Daniyar Usenov, who had previously served as the chief of the presidential staff. Bakiyev wants to reduce the number of ministries and government committees. He explains this as a necessity aimed at increasing governmental efficiency and purging incompetent officials (www.24.kg, October 21). But judging from Usenov’s appointment, this will represent a mere cadre reshuffle. The maneuver will further centralize the president’s control, who has shown that he is the only one able to sack and appoint government officials. Usenov promised to consider opposition leaders to fill government positions (www.akipress.kg, October 21). Although the new prime minister is trying to show his willingness to collaborate with the opposition, this will only mean that both the opposition and the regime have found a basis for cooperation despite their political differences. The reshuffle allows both the president and his allies to benefit politically and financially from redistributing government posts, while the opposition leaders continue functioning as political and business actors. In short, whoever is allowed to enter the government from the opposition camp will likely have business interests coinciding with his or her political ambition. The situation may allow the most ardent opponents of Bakiyev and even contenders in the presidential election on July 23 to obtain important government posts. Indeed, for Kyrgyz opposition leaders it is important to be part of the larger political process, especially since most are pressured by the government. Since Bakiyev came to power an unexpected number of politicians and journalists have either been killed or threatened with being violently removed. To survive in such conditions one must be either willing to compromise on personal political views and join the regime or escape Kyrgyzstan altogether. Indeed, the number of Kyrgyz political dissidents has grown in recent years.Interestingly, however, the views of local politicians are remarkably fluid. Some former political dissidents are willing to return home and try their luck once again with the new government. Yesterday’s anti-government activists abroad are now eager to become the key promoters of Bakiyev’s regime. “To me this all is just very confusing,” one Kyrgyz dissident told Jamestown regarding his former friends who now want to return to Kyrgyz politics. For all the supporters of the Bakiyev regime residing in Kyrgyzstan or abroad, it became convenient to argue that he is actually pursuing genuine political reform and not exercising political authoritarianism.“Maybe we underestimated the influence of the Russian and Kazakhstani political systems on Kyrgyzstan. As long as the government controls the media and is able to support political rent-seekers –authoritarianism encounters little objection,” one Kyrgyz scholar explained to Jamestown. In the political environment that Bakiyev has created in Kyrgyzstan, it is very easy for the president to dissolve the parliament and government whenever he chooses (www.parus.kg, October 21). Bakiyev’s more direct control of the security and military structures promoted by his “reforms” will further allow the president to stamp out any political dissent. Meanwhile, like its display of immediate support towards Usenov, the parliament will back any directive from the president. Former Prime Minister Chudinov is likely to earn another high-level post within the government or private sector. Usenov is among the most well known and successful entrepreneurs and politicians in Kyrgyzstan. He occupied various posts since the early 1990’s. His political impunity allegedly helped him to promote his business interests. During the early 2000’s


he was pressured by the former president Askar Akayev’s regime, but his political and entrepreneurial activity has gathered momentum under Bakiyev since 2005. He has also occupied the posts of deputy prime minister and Mayor of Bishkek (www.centrasia.ru, October 21). According to Kyrgyz observers, Usenov might have been the mastermind behind Bakiyev’s bargaining with the United States on the status of the US Manas airbase earlier this year. Thanks to its geopolitical maneuvering from February to July this year, the Kyrgyz government was able to increase US rent for the base and obtain 25 percent of Russia’s $2 billion credit, according to The Jamestown Foundation

• Kyrgyzstan launches large-scale government reform Kyrgyzstan launches a large-scale reform of all governmental bodies. As the news agency 24.kg earlier reported, the republican meeting of leaders of all ranges under chairmanship of the Kyrgyz president will take place in the White House on Tuesday. Kurmanbek Bakiev will voice the program of the state administration system reform. Presidential chiefs-of-staff, secretariat, parliamentary deputies, chairmen of the Constitutional and the Supreme Courts, members of the Kyrgyz government , chiefs of the central and local government agencies, administrative departments, state enterprises and other institutions have been invited to the meeting, the presidential press service reported. The meeting will be broadcasted live on the National TV and Radio stations.

• Social Democrats support new PM’s structure of government Social Democratic fraction of Kyrgyzstan supported structure of the government, suggested by the new prime minister of the republic on Wednesday. The fraction congratulated Daniyar Usenov on his appointment to the post, voiced approval of his candidacy and wished success. Usenov, in his turn, informed the deputies that the new government has ambitious plans on cardinal enlargement of the budget. He outlined that the new ministers’ cabinet would be formed later Thursday. “Majority of the former government’s staff will form the new cabinet. We will take the best,” the prime minister said.

• New cabinet to respect opposition views, new PM says The newly-appointed Prime Minister of Kyrgyzstan, Daniyar Usenov, said the new cabinet would respect the opposition’s views. “We will definitely support any ideas of the opposition if they are favorable for the country and its economy,” Usenov said visiting the session of Social-Democratic fraction of Parliament, and stressed that he had never actually divided the Parliament into Ak Zhol or SDPK representatives. Usenov has also promised to take any criticism positively. Geo Strategic Front

• Kyrgyzstan partially seals border with Tajikistan Separate parts of Kyrgyz-Tajik border have been sealed, public relations department of the Kyrgyz Border Service reported. Batken border unit tightened security on the state border following penetration of armed criminals from the territory of Tajikistan. The Kyrgyz Border Service jointly with the Interior and Defense Ministries, the National Security Committee are carrying out sweep operation at the time. The criminals supposedly went into hiding in Tajik enclave of Vorukh. Meanwhile, a fight broke out in the city of Isfana (Tajikistan) last night. Security officers have revealed six armed members of an organized criminal group approximately at 7:00 PM, who maintained active resistance. At least four criminals were killed in course of hours-long shout-out.


According to preliminary information of the Kyrgyz Border Service, four suspect associates of the criminal group have been detained on the territory on enclave

• Two alleged Hizb ut-Tahrir activists held in Kyrgyzstan Two alleged activists of the banned extremist party of Hizb ut-Tahrir were held in the Chui oblast of Kyrgyzstan, press service of the Kyrgyz Interior ministry reported. The extremists have been noticed near the Don-Aryk village, outside the town of Tokmok with 14 thematic DVDs, books, brochures and handwritings in different languages. The investigation is on going. Economic/Energy Front

• Swiss government invests in trade promotion in Kyrgyzstan The government of Switzerland allocates funds for promotion of trade in Kyrgyzstan, the Swiss Agency for Development and Cooperation reported. The Industry, Energy and Fuel Resources Ministry and the International Trade Center officially announced beginning of the third stage of the trade promotion project in Kyrgyzstan. Its main aim is support and development of export sectors of the Kyrgyz economy, in particular textile and sewing industry. The Swiss government finances the third stage of the projects which is meant for 3.5 years with the total budget of $1.8 million. The project will be implemented by the International Trade Center (ITC) in cooperation with the Kyrgyz Industry, Energy and Fuel Resources Ministry. Social Front Tajikistan Political Front


The board (Shuro) of Tajikistan’s lower chamber (Majlisi Namoyandagon) of parliament considered a bill requiring amendments to the Constitutional Law “On the Government of the Republic of Tajikistan” at an October 19 meeting presided over by its speaker Saydullo Khairulloyev. Muhammadato Sultonov, a spokesman for the Majlisi Namoyandagon, said that the board also considered amendments to the laws on scientific and scientific-technical examination, Tajikistan’s Red Crescent Society (RCS), environmental protection, and some other laws. Some of these issues will be considered at the next sitting of the sixth session of the Majlisi Namoyandagon of the third convocation, Sultonov said.

• President signs number of laws adopted by parliament this year DUSHANBE, October 19, 2009, Asia-Plus -- On Saturday October 17, President Emomali Rahmon signed a number of laws adopted by the parliament over the past several months, according to presidential press service. The president, in particular, signed the laws on preservation of soil, and amendments to the laws on the national budget for 2009, protection of the atmosphere, energy and state symbols of the country. The main purpose of the amendments proposed to the law on energy is in supporting local and foreign investments in development and use of electric power resources, the press service said. Geo Strategic Front

• Zarifi receives Russian deputy foreign minister


DUSHANBE, October 16, 2009, Asia-Plus -- Preparation of the upcoming visit of President Emomali Rahmon to Russia was a major topic of a meeting of Tajik Foreign Minister Hamrokhon Zarifi with visiting Russian Deputy Foreign Minister Grigory Karasin that was held here on October 15, according to the MFA information department. In the course of the talks, the two also discussed a broad range of issues related to state and prospects of further expansion of bilateral cooperation between Tajikistan and the Russian Federation as well as the situation in the region. We will recall that Grigory Karasin is attending the third two-day regional conference of Russian fellow-countrymen living in Central Asia’s that is concluding in Dushanbe today.

• Tajik speaker, Kazakh envoy discuss cooperation issues DUSHANBE, October 19, 2009, Asia-Plus -- Saydullo Khairulloyev, Chairman of the Majlisi Namoyandagon (Tajikistan’s lower chamber of parliament), today received Kazakhs Ambassador to Tajikistan Abutalibp Akhmetov. According to Muhammadato Sultonov, a spokesman for the Majlisi Namoyandagon, the two discussed prospects of further expansion of parliamentary cooperation between Tajikistan and Kazakhstan, noting that expansion of cooperation between the parliaments would promote strengthening of friendly relations between the two countries. Ambassador Akhmetov, in particular, noted that he will do all in his power to promote expansion of bilateral mutually beneficial cooperation between the two fraternal states in all directions, the spokesman said.

• Tajik FM, France’s envoy for Afghanistan and Pakistan discuss the present situation in Afghanistan

DUSHANBE, October 20, 2009, Asia-Plus - On Monday October 19, Foreign Minister Hamrokhon Zarifi met here with Mr. Thierry Mariani, Special Envoy of France for Afghanistan, Pakistan and Central Asia. According to the MFA information department, the two discussed a broad range of issues related to bilateral cooperation between Tajikistan and France, providing regional security, water-and-energy problems, and the present situation in Afghanistan. They also discussed a number of international issues being of mutual interest. The sides underlined the necessity of political stabilization and economic rehabilitation of Afghanistan, especially through implementation of regional projects aimed at construction of highways, railways, hydropower plants, power transmission lines, etc. In this connection, Mr. Mariani noted that Tajikistan played a key role in providing support for reconstructing Afghanistan’s economy and providing stability in Afghanistan.

• President Rahmon departs for Moscow for three-day visit tomorrow DUSHANBE, October 2009, 2009, Asia-Plus - President Emomali Rahmon is departing for Moscow for a three-day visit tomorrow, according to presidential press service. Tajik leader will visit Moscow and St. Petersburg and hold talks with high-ranking Russian state officials to discuss cooperation issues. A number of cooperation documents are expected to be signed during Rahmon’s visit to Moscow. According to local experts, the Russian military base in Tajikistan and the level of participation of Russia in completion of construction of the Roghun hydroelectric power station (HPS) will be among major topics of Rahmon’s discussions with Russian officials.

• Tajik speaker, U.S. ambassador discuss cooperation issues


DUSHANBE, October 23, 2009, Asia-Plus - Saydullo Khairulloyev, Chairman of the Majlisi Namoyandagon (Tajikistan’s lower chamber of parliament) today met with the U.S. Ambassador to Tajikistan, Kenneth E. Gross. Muhammadato Sultonov, a spokesman for the Majlisi Namoyandagon, said that in the course of the talks, Tajik speaker had expressed satisfaction with the present level of cooperation between the parliaments of the two countries, noting that Tajik MPs had visited the United States Senate twice and got acquainted with work of their U.S. collages. For his part, Mr. Gross noted that his country highly appraised Tajikistan’s role in combating modern challenges and threats such as terrorism, extremism and drug trafficking and would do all in its power to help Tajikistan tackle those problems. The sides also discussed the current situation in Afghanistan and ways to solve the Afghan problems, the spokesman said.

• Medvedev, Rahmon adopt joint statement DUSHANBE, October 23, 2009, Asia-Plus – - On Thursday October 22, the Resident of Russia Dmitry Medvedev and the President of Tajikistan Emomali Rahmon signed a joint statement in Moscow, Itar-Tass reports. The two leaders have charged co-chairmen of the Tajik-Russian intergovernmental commission for economic cooperation – Russia’s Energy Minister Sergey Shamtko and Tajikistan’s Vice-Premier Asadullo Ghulomov – to develop a draft program of economic cooperation between Russia and Tajikistan for 2010-2012. Medvedev and Rahmon noted that the present stage of development of relations between the two countries offered prospects for further expansion of cooperation between the two countries in all fields. They charged their relevant ministries to speed up a joint work on exploration and development of oil-and-gas fields in Tajikistan. The sides intend to implement projects in the fuel-energy sector in the future as well. The two leaders spoke for speedy singing of a government-to-government agreement between Russia and Tajikistan on interaction in exporting military goods to the third countries. They also declared for expansion of military and military-technical cooperation for providing national and regional security. Medvedev and Rahmon also spoke for taking measures to expand bilateral cooperation in regulating the labor migration processes in terms of protection of rights of Tajik labor migrants in Russia and protection of rights of Russian labor migrants in Tajikistan. Both presidents expressed satisfaction with the results of the negotiations and decided to continue conducting them “on the regular basis of bilateral meetings at the highest level.” President of Tajikistan invited President of the Russian Federation to pay a sate visit to Tajikistan at any time of convenience. The invitation was accepted with gratitude and the dates for the visit will be decided through diplomatic channels. Speaking at a news conference following the negations, President Medvedev stressed that both sides had agreed to expand cooperation in the oil-and-gas sector. He added that relations between the two countries in other sectors were also good. “Even under the conditions of the crisis, we are continuing to cooperate in such important directions as hydropower engineering,” he said, noting that substantial results were reached. Now, preparations are made for construction of small hydropower plants on the inner rivers of Tajikistan. According to him, in the course of the talks they also discussed priorities of work for the next year and other integration events.“We have agreed to develop interaction within the framework of the Shanghai Cooperation Organization (SCO) and consider it as an effective mechanism of providing stability and security in Central Asia,”


Medvedev said. He added that they had also discussed the current situation in Afghanistan and ways to normalize the situation in that country.

• No problems with Russian military base in Tajikistan, says Russian defense minister

DUSHANBE, October 23, 2009, Asia-Plus – There are no problems with Russian military base deployed in Tajikistan and the sides are currently discussing the issue of payment for the use of a military in Tajikistan only starting from 2014, Russian Minister Anatoly Serdyukov told reporters in Moscow on October 22. “In our opinion, there are no any difficulties with the deployment and presence of base to this day,” Serdyukov told reporter following the negotiations between the delegations of Russia and Tajikistan.According to Russian media, the Russian minister noted that the issue of paying for the use of the military base on the territory of Tajikistan before the expiration of the current agreement was not discussed during the negotiations. “We considered two issues – whether the base will function in a regime, in which it functions now or it will function on the basis of payment. It is still premature to say about any specific figures. We do not yet know how to calculate them,” he said. Economic/Energy Front


DUSHANBE, October 17, 2009, Asia-Plus -- On Friday October 16, the first deputy head of Tajikistan’s Chamber of Commerce and Industry, Odil Sangov, met with visiting Iranian delegation, led Hamid Ali Mobaraki, vice-governor of Iran’s Sistan-Beluchistan province, and Mohammad Nishati, the head of the Chamber of Commerce and Industry of this province, according to the CCI press service. The purpose of the visit is for the Iranian delegation to establish cooperation with Tajik enterprises, seek business partners for investment in joint projects and launch of joint ventures. The sides, in particular, discussed opportunities of expansion of cooperation, especially in sectors like hydropower engineering, road building and food industry. They also discussed cooperation in processing farm produce and semi-precious stones. Sangov noted that construction of new highways in Tajikistan gave Iranian entrepreneurs an opportunity to export their products to China, Kyrgyzstan and Afghanistan via Tajikistan. He added that the bridge across the Panj River joining Tajikistan and Afghanistan built in Nizhny Panj could be used for exporting goods to Iran. The same day, members of the Iranian delegation met with a number of Tajik entrepreneurs. Tajik side at the meeting was represented by top managers of the following enterprises: Sultoni Kabir; Gahlla; Rukhom; Tojikcement; Zioyratsho Corp; Dushanbetext; Khurokvori; Vakhsh HPPs Cascade; and Kulob diary factory.

• Tajikistan tops CA states in economic use of water, says minister DUSHANBE, October 17, 2009, Asia-Plus - Tajikistan tops Central Asia’s states in terms of economic use of water, Minister of Land Reclamation and Water Resources Said Yoqubzod announced at a news conference in Dushanbe on October 16. According to him, Tajikistan’s annual quota in the Amudarya River amounts to 9.5 billion cubic kilometers of waters, while the country actually uses up to 5.5 billion cubic kilometers of the Amudarya waters per year and “only during the dry years, Tajikistan uses up to 6 billion cubic meters of waters from this river.” The minister noted that since Tajikistan does not have reservoirs for unused water, it flows to neighboring Uzbekistan and from


there to Turkmenistan and only after that it reaches the Aral Sea. “Unfortunately, the unused 4 billion cubic kilometer of waters of our quota do not reach the Aral Sea, while the interstate coordinating commission determined that 6 billion cubic kilometers of water should come to the Aral Sea from each of the Central Asian states every year.” It happens because the neighboring countries use water in excess of the determined rate, he noted. “International organizations had recommended our neighbors long ago that they should plant and cultivate crops that do not require much moisture, use water in accordance with the rates determined and economize water in order to rehabilitate the Aral Sea,” the minister stated.

• Tajikistan exports 3.763 bln kWh of electricity in Jan-Sept 09 DUSHANBE, October 19, 2009, Asia-Plus -- Electricity and cotton fiber remain main items of Tajikistan’s exports. In January-September this year, Tajikistan has exported 3.763 billion kWh of electricity for 55.9 million U.S. dollars, according to the State Committee for Statistics. Over the report period, Tajikistan has imported 3.653 billion kWh of electricity for 66.2 million U.S. dollars, which is 109.4 million kWh fewer in the overall volume of the imported electricity but 10.3 million U.S. dollars more in terms of the amount paid. Over the same nine-month period, Tajikistan has purchased 177.1 million cubic meters of natural gas for 42.5 million from Uzbekistan, which is 23.2 percent fewer than in the same period of last year. Over the report period, Tajikistan has exported 54.5 tons of cotton fiber 57.5 million U.S. dollars, which is 6,400 tons fewer than in January-September 2008. The main trading partners of Tajikistan in regard to its cotton fiber were: Russia – 40.7 percent; Iran – 26.3 percent; Belarus – 5.8 percent; Uzbekistan – 5.7; and Latvia – 5.1 percent. An average price of one ton of cotton fiber for January-September 2009 amounted to $1,057. Social Front

• Tajikistan begins Central Asia's Biggest Mosque The mosque will hold 150,000 worshippers when completed On what now looks like an enormous car park in Tajikistan's capital, Dushanbe, work has begun on a gigantic new mosque. One square block of stone has been laid by President Emomali Rakhmon to signal the start of construction. When completed in five years, Central Asia's poorest state will be home to the region's largest mosque, dwarfing the Turkmenbashi mosque in neighbouring Turkmenistan, which can hold 10,000 people It will include tall minarets and painted columns that are to symbolise the world and the seven gates to paradise. There will be fountains to represent Tajikistan's large water reserves as well as a museum, library and conference halls. But with the capacity to hold 150,000 worshippers in a city of just over 700,000 people, critics are saying the mosque is an extravagance and that the money would be better spent on poverty reduction. Tajik state media say that the multi-million dollar project will not cost the cash-strapped country anything, because the government of Qatar has agreed to foot the bill as part of what it calls its commitment to Islam. So many people are homeless and barely making ends meet. Why don't they build several houses for those needy people? On the streets of Dushanbe, one resident said he liked the idea of having the biggest mosque in the region, especially if it is free. Sobit Valiev, 70, says the country may as well be a record breaker in some field. "Why shouldn't we", he says. "At the end of the day, it's not our money, is it? If I am alive in five years time, sure I will go there and pray." Ismail, a driver, thinks the mosque is a good idea, but he is worried that there will


be corruption. "I am sure there will be a few officials who are going to get richer. It is a big project and big money." While some Tajiks seem to welcome the plan, others are more critical. Salohiddin, a 34-year-old from Dushanbe says helping the many poor would be a better way to spend the money. "It's one of the biggest values of Islam, isn't it? So many people are homeless and barely making ends meet. Why don't they build several houses for those needy people?" Some analysts say the aim of the mosque is to give the government more control over the way people practise their faith. The Tajik authorities admit that they are hoping to build more than a beautiful mosque. They want it to be seen as part of their effort to tackle extremism in a region which is struggling to contain the rise of radical groups such as Hizb-ut Tahrir or Wahabbi sects which have been gaining popularity in the Central Asian nation. The government has accused radical sects and renegade Islamic opposition groups of planting several bombs in Dushanbe in recent years. On 19 October the authorities confirmed that four suspected members of the banned Islamic Movement of Uzbekistan (IMU) were killed in a shootout with police in the north of the country and one person was arrested. The IMU is a militant group with links to the Taliban. Security forces have also been fighting militants in the east, close to the Afghan border, raising fears that the instability in Afghanistan could be spilling over into Tajikistan. The authorities have also closed down dozens of what they call "unauthorised" mosques and have begun registering all places of worship. Speaking at the start of construction of the mosque, President Rakhmon said "this must be a place that unites people in the service of God and clean ideas. "It should not be a platform for non-traditional and alien ideas."

• Corruption costs Tajikistan at some 56 mln somoni in Jan-Sept 09 DUSHANBE, October 16, 2009, Asia-Plus -- In a report released at a press conference in Dushanbe, Director of the Agency for State Financial Control and Combating Corruption Fattoh Saidov revealed on October 15 that according to findings by the anticorruption agency, corruption has cost Tajikistan at some 56 million somoni over the first nine months of this year. Over the report period, the agency has conducted 892 inspections at state-run economic entities and other federally funded organizations. Overall, 666 officials and managers have been implicated in wrongdoing, and disciplinary and administrative actions have been imposed upon them; 28 of them have been sacked. Besides, inspections of activities of 69 private companies have revealed tax evasion cases for a total amount of more than 11.8 million somoni, Saidov added.

• Third international human rights documentary festival comes to Khujand KHUJAND, October 17, 2009, Asia-Plus -- The Third International Human Rights Documentary Festival started at the Faculty of Art of Khujand State University on October 16. Organized by the Human Rights Center “Citizens against Corruption” and Bir Duyne (Common World), both Kyrgyz organizations, under financial support of the European Union and international organization Hivos International, the festival seeks to promote to promote the ideals of open society, democracy, rule-of-law, tolerance, political and cultural pluralism. The festival coordinator, Ms. Diana Mekembayeva, told Asia-Plus on October 16 that festival will last in Khujand for three days. Twenty documentaries on rights of children, women, sexual minorities as well as environmental protection problems, made by representatives of Great Britain, Kazakhstan, the United States, Mongolia, India, Russia, Germany, China, Kyrgyzstan and Tajikistan, are being


screened in Khujand. According to Mekembayeva, the festival was launched in Bishkek on September 22 and then continued in Naryn, Osh, Isfara and now it came to Khujand. Turkmenistan Political Front Geo Strategic Front

• Turkmenistan denies entry to Peace Corps (AP) - The reclusive Central Asian nation of Turkmenistan has denied entry to dozens of Peace Corps volunteers, the organization’s country director said Friday. Turkmenistan denies entry to Peace Corps Isolated Turkmenistan denies entry to Peace Corps volunteers The reclusive Central Asian nation of Turkmenistan has denied entry to dozens of Peace Corps volunteers, the organization's country director said Friday. The decision to bar 47 volunteers from the U.S. government-run program from the former Soviet state comes amid fears energy-rich Turkmenistan is reneging on commitments to open up after years of isolation under an eccentric autocrat. "We had the paperwork in place, and they were approved to come, but the day before they were due to leave the U.S., we received a diplomatic note from the embassy saying that they would be invited next year, but not for this year," Leal said by telephone from the Turkmen capital, Ashgabat. Leal said it was unclear what provoked the decision, but that his organization is waiting to meet with government officials for an explanation on the matter. The Peace Corps, whose operations in Turkmenistan are devoted to teaching English and health education, is often viewed with suspicion by governments in former Soviet states. In 2002, Russia expelled the organization and accused some of its volunteers of spying. The next scheduled group of Peace Corps volunteers is not slated to travel to Turkmenistan until late next year, which Leal said could hamper the organization's operations. "It is going to have a big effect. Many of the volunteers are completing their service here, so in late December, we will be about half what we currently have," Leal said. He said the group's numbers would drop to about 35 volunteers, as opposed to the usual 70 or 80. The Peace Corps has sent around 700 volunteers to serve in Turkmenistan since starting operations there in the early 1990s. Turkmenistan's leadership has made tentative moves to open up the country since the December 2006 death of Saparmurat Niyazov, the autocract who had ruled since before the 1991 Soviet collapse. His successor, President Gurbanguli Berdymukhamedov, has repealed some of Niyazov's most idiosyncratic policies, including banning opera and the circus for being insufficiently Turkmen. In education, Berdymukhamedov's government has increased basic education to 10 years from to nine years, and higher education has been extended from two years to five. He has also increased contacts with the West, which is eager for access to Turkenmnistan's natural gas riches. But fears are mounting that the government is reverting to Niyazov's draconian style of rule. Last week, the United States criticized efforts by Turkmenistan to prevent students from traveling to U.S.-linked universities. Over the past few months, Turkmenistan has stopped hundreds of students from leaving the country to take up courses at the American University of Central Asia, in Kyrgyzstan, and the American University in Bulgaria. U.S. criticism of Turkmen government policy came just weeks after a high-profile meeting in the United States between Berdymukhamedov and U.S. Secretary of State Hillary


Rodham Clinton. Turkmenistan has long been subject over intense rivalry between the West and Russia for access to its vast natural gas reserves, which the government estimates may total more than 700 trillion cubic feet (20 trillion cubic meters).


A new Turkmen border crossing checkpoint called Farap, which is located in the territory of Farap district on the border with Uzbekistan, was ceremonially opened in the city of Turkmenabat. This state-of-the-art facility meets international standards and has all necessary conditions for the efficient work of staff and quality of border-crossing operations, including luggage and vehicles examination. This will raise the level of services of traffic passing through the Turkmen-Uzbek border, and put a firm barrier to trafficking in contraband, including drugs. According to Public Affairs Section of the US Embassy in Turkmenistan, Farap border crossing checkpoint is the third checkpoint the construction and equipment of which was funded by the United States Government. The first border checkpoint "Altyn Asyr" was opened in 2006 on the border with Iran and the second border checkpoint "Imamnazar" was opened in 2007 on the border with Afghanistan. In her opening remarks, the U.S. Charg d'Affaires, a.i., Sylvia Curran emphasized that "these checkpoints represent the continuing efforts between the United States and Turkmenistan to work together to battle against those forces which threaten the peace and stability of our countries." The ceremony was also attended by the Director of the Central Asia Office, Bureau of South and Central Asian Affairs at the U.S. State Department Mr. Tom Hushek, Rear Admiral Michael Franken representing the United States Central Command and Colonel Wroblewski representing the Nevada National Guard.

• Turkmen president receives Russian interior minister On October 19, President Gurbanguly Berdimuhamedov received Minister of Internal Affairs of Russia Rashid Nurgaliyev, who is in Turkmenistan on a working visit. "The meeting was very constructive. The president of Turkmenistan is interested in problems of law enforcement agencies, and feels their concerns," Rashid Nurgaliyev said after the meeting, ITAR-TASS reported "We have discussed at length issues related to the fight against transnational organized crime, drug trafficking, cybercrime and illegal migration." According to the Russian minister, issues of training and retraining of staff were also touched on at the meeting with the Turkmen leader. Rashid Nurgaliyev shared with President Gurbanguly Berdimuhamedov his impressions of the visit to an automated motordrome, where candidates pass driving examinations, as well as the duty unit of the Turkmen Ministry of Internal Affairs.

• Russian Minister of Internal Affairs Rashid Nurgaliyev arrives in Turkmenistan Minister of Internal Affairs of Russia Rashid Nurgaliyev arrived in Turkmenistan on a visit. During the visit, the head of the Russian Interior Ministry will hold bilateral talks with his Turkmen counterpart Isgender Mulikov. "The heads of law enforcement agencies are going to discuss topical issues of interaction, and identify priorities for joint action for the near future," the press-center of the Russian Interior Ministry said. The ministers will also raise the issue of joint training and retraining, and discuss measures aimed at curbing the illegal migration channels. On the results of talks, the sides are expected to sign a protocol on the interaction of the Interior Ministries of Russia and Turkmenistan for 2010-2011. As the press center reported, under this document, the


ministries will continue the practice of coordinated joint action for the prevention, detection, suppression and exposure of transnational crimes, elimination of channels of illegal migration, as well as joint countering of international terrorism. The sides will also continue to work together to strengthen the legal base of cooperation, including in the sphere of equipment and research.

• Ministers of Internal Affairs of Turkmenistan and Russia sign protocol on cooperation for 2010-2011

Minister of Internal Affairs of Turkmenistan Isgender Mulikov and his Russian counterpart Rashid Nurgaliyev, who arrived in Ashgabat on a working visit, signed a Protocol on Cooperation between the two ministries for 2010-2011. The document envisages strengthening cooperation in several areas, including combating transnational crime, illegal migration, international terrorism, ITAR-TASS reported. In addition, the protocol provides for conducting joint investigation and search operations and prevention activities, as well as joint work as part of active criminal cases. "Today, we have common threats, and they are global in nature, and therefore we have to fight them together," Rashid Nurgaliyev said after the talks. He noted that "there is a relevant legal basis in place." The Russian minister expressed hope that the protocol will give new impetus to cooperation between the law enforcement agencies of Russia and Turkmenistan. According to him, it is also necessary to intensify the exchange of information between the two ministries. It is also reported that the Interior Minister of Russia invited his Turkmen counterpart to take part in several events to be held in Russia such as the anti-terrorist exercises in Krasnodar region late October and the First International Ministerial Conference on Road Safety "Act Now" to be held November in Moscow 19-20. Economic/Energy Front

• Turkmenistan: New Pipeline to start Pumping Gas to Iran on December 20 Turkmen gas exports to Iran via a new pipeline are slated to begin on December 20. According to Iranian news sources, northern Iran will receive gas supplies originally earmarked for purchase by the Russian energy giant Gazprom."The decision to turn the gas flow south was taken in April 2009 after Gazprom halted gas imports from Turkmenistan because of the gas pipeline explosion the CAC-4 (pipeline) on the border with Uzbekistan," news site Iran.ru reported on October 22. The new export pipeline will carry fuel from the Dovletabat gas field to Iran. Iranian officials say consumers could need up to 20 billion cubic meters of Turkmen gas a year. "The two sides made considerable efforts to ensure that gas from Turkmenistan, using the new pipeline, could flow to Iran before winter," Reza Kasaeizadeh, the managing director of National Iranian Gas Export Company, is quoted as saying, according to Eurasianet

• Turkmen president sacks several energy chiefs (AFP) - The president of resources-rich Turkmenistan has sacked several top officials in the energy sector, denouncing their “irresponsible approach” to their jobs, the official news agency reported.

• Turkmen president sacks several energy chiefs The president of resources-rich Turkmenistan has sacked several top officials in the energy sector, denouncing their "irresponsible approach" to their jobs, the official news agency reported. At a meeting with the central Asian republic's heads of oil and gas companies, President Gurbanguly Berdymukhamedov "noted with regret that an


irresponsible approach by certain leaders to their jobs caused a number of deficiencies and negligences" in their work, the agency said Monday. Berdymukhamedov dismissed the head of public company Turkmenneftegazstroy along with the chiefs of the country's state gas and oil enterprises, Turkmenneft and Turkmengaz. The president criticised the "poor construction quality" of Turkmenistan's energy installations, delays in providing gas to towns and villages, and the absence of "needed measures to increase oil production." Turkmenistan, a reclusive country on the Caspian Sea which has huge gas reserves, has been wooed by Western nations, China and Russia in their race for new resources.

• Turkmenistan and Astrakhan region to continue expansion of trade and economic ties

Astrakhan Region is interested in purchasing agricultural products from Turkmenistan and products of its processing, as well as increasing purchases of various construction materials, said Governor of Astrakhan Region Alexander Zhilkin during a meeting with Turkmen President Gurbanguly Berdimuhamedov on October 15. Alexander Zhilkin arrived in the Turkmen capital at the head of the delegation of government and business structures of the region. As the Turkmenistan.ru correspondent reports from Ashgabat quoting the press service of the Turkmen leader, Alexander Zhilkin informed the President of Turkmenistan about Astrakhan shipbuilders' interest in taking orders for construction of bulk carriers and tankers, as well as Astrakhan region willingness to render assistance to Turkmenistan in training of staff for the national fleet and key sectors of the national economy on the basis of specialized educational institutions of Astrakhan. The Governor also spoke about intention of Russian companies to take active part in projects on construction of bridges, subways, overpasses implemented throughout the territory of Turkmenistan, as well as modernization of the seaport. "Turkmenistan is always open to reliable partners with whom it maintained not only long-term fruitful cooperation but also the relations of sincere friendship rooted deep into centuries," Gurbanguly Berdimuhamedov said. The president also announced the country's intention "to continue building up direct links with the regions and major industrial, educational and cultural centers of Russia, including Astrakhan region.

• Turkmen President, head of Gazprom hold talks Turkmen President Gurbanguly Berdimuhamedov received Chief Executive of OAO Gazprom Alexei Miller in Ashgabat on October 19. During the meeting, they discussed issues of long-term strategic cooperation in the gas sphere. According to the press center of Russia's holding company, Alexei Miller was on a working visit to the Turkmen capital leading a delegation of Gazprom.

• Ministry of Trade and Industry of Tatarstan discusses cooperation with Turkmenistan

Promising areas of cooperation with Turkmenistan were discussed yesterday during a meeting with Plenipotentiary Representative of Tatarstan to Turkmenistan Kamil Galiyev at the Ministry of Trade and Industry of the Republic of Tatarstan. The meeting discussed prospects for bilateral cooperation, the press service of the Ministry said. In particular, there were discussed proposals made by OAO "PO ELAZ", OAO "UK KER-Holding" and OOO "Mendeleevskazot", whose representatives attended the meeting. The meeting also looked at organizational issues of the forthcoming visit of a high-profile delegation of Tatarstan to Turkmenistan.


• Turkmenistan completes construction of its section of pipeline to China According to the state concern Turkmengaz, Turkmenistan has completed building its secion of the international gas pipeline Turkmenistan - Uzbekistan - Kazakhstan - China with a total length of more than 7000 km. The new 188-km gas artery with a diameter of 1420 mm connected the Malay gas field with the beginning of the TransAsian gas pipeline on the Turkmenistan-Uzbekistan border, creating a unified gas transportation corridor. The project is implemented by Russia's Stroytransgaz. Much of the Turkmen section of the pipeline Malay - Bagtyyarlyk passes through the Karakum Desert, Turkmengaz said. The most difficult part of it was the construction of an underground passage across the Amudarya River, which was carried out for the first time. The official commissioning of the pipeline, which will transport up to 40 billion cubic meters of natural gas to China for 30 years annually, is scheduled for mid-December. At present, gas workers are preparing for the pipeline testing. Social Front

• Traditional exhibition of economic achievements of Turkmenistan kicks off in Ashgabat

The Exhibition of Economic Achievements of Turkmenistan dedicated to the 18th anniversary of Turkmenistan's independence started at Sergi Kosgi Exhibition Center in Ashgabat. The forum was organized by the Ministry of Economy and Development of Turkmenistan, the Chamber of Commerce and Industry of Turkmenistan and the Ashgabat city administration. Over one hundred representatives of economic entities operating in all sectors of the national economy demonstrate their capacities at the exhibition. Turkmen businessmen and private companies also participate. President of Turkmenistan Gurbanguly Berdimuhamedov sent a welcome message to the forum participants. The head of state expressed confidence that the festive exhibition will allow the world community and foreign partners to get acquainted with the multifaceted potential of Turkmenistan and large-scale socio-economic programs and international projects being implemented in the country. "The exhibition will also provide an opportunity for representatives of enterprises and organizations to exchange views and experiences, discuss issues of interest, establish long term business relationship," he stressed. Uzbekistan Political Front

• Preparations for the elections: consistent work is carried out On October 20, the press center of the Central Election Commission of Uzbekistan held a regular press conference for domestic and foreign journalists. Chairman of the Central Election Commission M. Abdusalomov informed journalists about the work on the formation of electoral districts, the formation of district electoral commissions for the elections of deputies of Legislative Chamber of Oliy Majlis of the Republic of Uzbekistan and the admission of political parties to participate in the forthcoming elections. CEC Chairman reported that in accordance with Article 7 of the Law “On elections to the Oliy Majlis”, the elections for the Legislative Chamber of Parliament shall be held by one hundred and thirty-five geographical constituencies. The Central Electoral Commission, considered the proposals of public authorities in the field, at its meeting on 9 October and agreed on the formation of constituencies for the elections to the Legislative Chamber of Oliy Majlis. List of constituencies, including their names,


serial numbers, boundaries and the number of voters published in the press. At a press conference, the CEC Chairman M. Abdusalomov told reporters that at its meeting on 16 October in accordance with Article 11 of the Law “On elections to the Oliy Majlis of the Republic of Uzbekistan” the Central Election Commission agreed on the formation of district electoral commissions on elections of deputies of Legislative Chamber of Oliy Majlis. It was noted that under Article 12 of the Act the district election commission formed by the Central Election Commission consist of a chairman, deputy chairman, secretary and at least six other members of the commission. In approving the personal staff of district election commissions of the Central Election Commission, special attention was drawn to the fact that, in accordance with Article 16 of the law, the district commissions includes respected members of the public. Lists of members of district commissions, indicating addresses and telephone numbers of committees are published in the press. For members of the newly formed election commission CEC organized a series of seminars and training sessions on the fundamentals of the electoral law. At the press conference It was also informed that under Article 21 of the Law of the Republic of Uzbekistan “On elections to the Oliy Majlis of the Republic of Uzbekistan” for the nomination of candidates, each of the four of the country’s operating political parties need to submit to the Central Election Commission necessary documents for the nomination of candidates – a declaration of participation in elections, signed by the head of the Party, a certificate of the Ministry of Justice that the political parties registered not later than four months prior to the announcement of the beginning of the campaign, and the subscription lists of voters in support of its participation in the elections for the lower house of parliament. In accordance with Article 231 of the Law “On elections to the Oliy Majlis of the Republic of Uzbekistan” working group was formed in Central Election Commission to verify the compilation of subscription lists submitted by political parties. authorized representatives of political parties attended during the consideration of the subscription lists. This is – a new institution introduced by the national electoral law, which aims to ensure even greater transparency and democratic electoral process. At a press conference, the CEC Chairman M. Abdusalomov said that the results of examination of materials by the political parties indicate that the collection of voter signatures was conducted in full accordance with the requirements of electoral law. In this regard, the Central Election Commission adopted a resolution on admission to participate in the elections for the Legislative Chamber of Oliy Majlis of the People’s Democratic Party of Uzbekistan, Social-Democratic Party of Uzbekistan Adolat, the Movement of Entrepreneurs and Businessmen – Liberal Democratic Party of Uzbekistan and the Democratic Party of Uzbekistan “Milliy Tiklanish” at a meeting October 17 and 18. It was noted the decision of the Environmental Movement of Uzbekistan to participate in elections to the Legislative Chamber of Parliament. At a press conference the Chairman of the Central Election Commission, M. Abdusalomov answered all questions of domestic and foreign media concerning the organization of elections in Uzbekistan.

• Parties approved for participation in elections The Central Election Commission of Uzbekistan considered the applications and other documents of the country’s political parties regarding their participation in the December elections to the Legislative Chamber of the Oliy Majlis of Uzbekistan. The commission has issued permissions for the participation in the elections of the People’s Democratic


Party, “Adolat” (“Justice”) Social Democratic Party, Liberal Democratic Party (Movement of Entrepreneurs and Businessmen) and the “Milliy Tiklanish” (“National Revival”) Democratic Party. The Central Election Commission also received the decision of the Environmental Movement of Uzbekistan about its participation in the December elections to the lower chamber of the parliament.

• Election Commission holds session The Central Election Commission of Uzbekistan held a session on 16 October, chaired by the head of the commission Mirzo-Ulugbek Abdusalomov. The commission considered the issue of forming the district electoral commissions for the elections of the deputies of the Legislative Chamber. The number of the district electoral commissions is 135, which is equal to the number of the electoral districts in the country. The commissions consist of the representatives of the public, whose candidacies were recommended by the regional councils of people’s deputies. The Central Election Commission adopted a resolution on the forming of the district electoral commissions and approved the list of the members of these commissions, which will be published in the local press. Geo Strategic Front

• Uzbekistan: European Union looks Likely to lift Arms Embargo The European Union appears poised to lift its four-year arms embargo against Uzbekistan. EU officials say strategic necessity is exerting pressure on Brussels to fully engage Tashkent. Critics, however, contend that by compromising on principles, the European Union is sacrificing long-term interests for immediate, but likely fleeting gains. According to a report appearing October 22 in the EU Observer, a draft statement has been prepared concerning the lifting of the arms embargo, the last sanction still in place from among several imposed on Tashkent shortly after the Andijan massacre of 2005. The draft, which appears headed for approval at the next meeting of the EU’s General Affairs and External Relations Council on October 26, states; "With a view to encouraging the Uzbek authorities to take further substantive steps to improve the rule of law and human rights situation on the ground, and taking into consideration their commitments, the Council decides not to renew the remaining restrictive measures set out in the Council Common Position (of 2008)." Some human rights advocates deride the draft statement as cynical. The EU is not so concerned about democratization in Uzbekistan as it is with advancing economic interests and improving security cooperation, they say. Any belief that lifting the sanctions will provide a boost for civil rights in Uzbekistan is delusional, rights advocates add. "Uzbekistan has not done anything at all to deserve the sanctions to be lifted," said Veronika Szente Goldston, Human Rights Watch’s Advocacy Director for Europe and Central Asia. The EU never seemed interested in the sanctions strategy since its inception in 2005, Goldston added. Germany and other EU members, she noted, undermined the intended effect of the sanctions via bilateral diplomacy. "There’s been a lot of mixed messaging during high level meetings over the past four years," she said. "It’s the final blow to a longstanding and disappointing trend of the EU not giving the sanctions the political backing that they deserved." Observers warn by letting the sanctions expire the EU risks sending the wrong message not only to Uzbekistan, but to other countries in the region with dubious human rights records. When it imposed the sanctions in 2005, the EU set conditions for their removal. Tashkent has not met those requirements. Thus, EU credibility throughout Central Asia


could be severely damaged by the unconditional lifting of the Uzbek arms embargo. Such action would tacitly encourage authoritarian-minded regimes in the region, including President Islam Karimov’s administration in Tashkent, to continue acting with a sense of impunity, some rights advocates contend."After Andijan, there were conditions attached to the sanctions calling for an independent and international investigation, and that has not happened," said Jacqueline Hale, policy officer responsible for Central Asia and the Caucasus at the Open Society Institute (OSI) in Brussels. "We would urge the EU to stick to its principles." (Editor’s note: OSI Brussels is part of the Soros Foundations Network. EurasiaNet operates under the auspices of OSI in New York, another component of the network). "The Uzbek government’s record in international relations is not good, inter-regionally or internationally. Their relations with their neighbors swing all over the place. You can buy favor for a short time but is that worth selling out on your principles?" Hale continued. "It’s not only about what Uzbekistan thinks of the EU, it’s about what Kyrgyzstan, Turkmenistan and Russia sees the EU doing, and what messages it sends." In practical terms, the arms embargo is not seriously squeezing Tashkent, which obtains the bulk of its arms from Russia and Ukraine. The EU sanction that stung the most was a travel ban that was imposed on top Uzbek officials, a restriction that was lifted in 2007. (For background see the Eurasia Insight archive). Nevertheless, the arms embargo carries with it a lot of "symbolic" weight, according to a Tashkent-based rights activist, who spoke to EurasiaNet on condition of anonymity. Hale noted that Germany seems to have "an ideological problem with sanctions," with Berlin convinced that economic punishments are not effective in bringing about desired political change. Hale, however, defended sanctions in the Uzbek case as the best available option for achieving desired results. "The Uzbek regime is unreformed and unresponsive, so in the short term neither engagement nor lifting sanctions will make a difference to them," Hale said. "While people often question sanctions and ask ’do they work?’ no one ever turns the question around and asks ’what has 18 months of engagement brought us?’" she said, according to Eurasianet.org.


A new Turkmen border crossing checkpoint called Farap, which is located in the territory of Farap district on the border with Uzbekistan, was ceremonially opened in the city of Turkmenabat. This state-of-the-art facility meets international standards and has all necessary conditions for the efficient work of staff and quality of border-crossing operations, including luggage and vehicles examination. This will raise the level of services of traffic passing through the Turkmen-Uzbek border, and put a firm barrier to trafficking in contraband, including drugs. According to Public Affairs Section of the US Embassy in Turkmenistan, Farap border crossing checkpoint is the third checkpoint the construction and equipment of which was funded by the United States Government. The first border checkpoint "Altyn Asyr" was opened in 2006 on the border with Iran and the second border checkpoint "Imamnazar" was opened in 2007 on the border with Afghanistan. In her opening remarks, the U.S. Charg d'Affaires, a.i., Sylvia Curran emphasized that "these checkpoints represent the continuing efforts between the United States and Turkmenistan to work together to battle against those forces which threaten the peace and stability of our countries." The ceremony was also attended by the Director of the Central Asia Office, Bureau of South and Central Asian Affairs at the U.S. State


Department Mr. Tom Hushek, Rear Admiral Michael Franken representing the United States Central Command and Colonel Wroblewski representing the Nevada National Guard.

• President of Uzbekistan receives Indian Foreign Minister President of Uzbekistan Islam Karimov received Indian Foreign Minister Somanahalli Krishna in Tashkent on 23 October. Welcoming the guest, the head of Uzbekistan said that the relations between the two states were developing successfully. They are based on historical, cultural and spiritual closeness of the people of the two countries. The Uzbek-Indian relations are based on the principles of mutual trust and respect. The two states have established close and constructive contacts on the highest level. Uzbekistan and India support each other on the international arena and are developing cooperation in the framework of such regional and international organizations like the UN and the SCO. At the meeting in Tashkent, Somanahalli Krishna expressed India’s interest in further development of the mutually beneficial bilateral cooperation with Uzbekistan. The sides exchanged views on the further expansion of cooperation between the countries, as well as on other issues of mutual interest.

• Council of SCO Anti-Terrorist Structure holds session The Council of the Regional Anti-Terrorist Structure (RATS) of the Shanghai Cooperation Organization (SCO) held its 15th session in Tashkent on 16 October. The representatives of Kazakhstan, China, Kyrgyzstan, Russia, Tajikistan and Uzbekistan participated in the session. The meeting participants considered the report of the RATS Executive Committee director M.Subanov on the implementation of the decisions of the SCO RATS Council and the Program of cooperation of SCO member states in fighting terrorism, separatism and extremism for 2007-2009. Other issues on the agenda were improvement of cooperation in the field of combating terrorism, separatism and extremism. The participants noted that the RATS activity corresponded to the modern threats and challenges. In the framework of the implementation of the above-mentioned program, the participants supported the proposal of China about holding the SCO meeting on exchange of information in the field of terrorism, separatism and extremism in this country in December. The complex measures of the SCO states in assisting China and Kazakhstan in ensuring security of the international exhibition EXPO 2010 in Shanghai, Guangzhou Asian Games of 2010 and Kazakhstan Asian Winter Games in 2011 were approved. The activity of the SCO RATS Executive Committee was positively evaluated and the plan of this body’s work in 2010 was approved. The council adopted a number of decisions on the organizational issues, financial provision of the Executive Committee’s activity and further development of the legal basis of SCO states’ cooperation in fighting terrorism, separatism and extremism. The representative of Kazakhstan – the first vice chairman of the Kazakh National Security Committee Adil Shayakhmetov – was elected chairman of the SCO RATS Council. The sides agreed to hold the next session of the SCO RATS Council in April 2010 in Tashkent. Economic/Energy Front

• International industrial fair and cooperation exchange continues in Tashkent Uzbekistan Industrialists Forum, carried out at the initiative of President Islam Karimov, aims to promote the real sector enterprises to provide free access to necessary raw materials and credit resources, facilitate the creation of market infrastructure to build and expand long-term business relationships based on intra and inter-sectoral cooperation.


Since this year the third fair and exchange is given an international status. This event is attended by representatives of over 650 foreign companies from 46 countries, including Germany, Italy, Great Britain, Korea, China, Poland, Russia, Turkey and other countries. They have something to look for at the stands of more than 360 domestic enterprises and companies of our country as potential customers for the most variety of products and services. Leading industries of the republic and companies are displaying products on the manufacturing sectors. Processing of mineral resources, high technology, automotive, agricultural, electrical, chemical, pharmaceutical, light industry, food industry, building materials, printing, transport and transport engineering are widely represented at the fair. To date, the presentation of a number of industries and enterprises took place, which had shown their technical and technological capabilities. They certainly helped participants to establish new and expand existing relationships between producers and consumers. Agreements were signed for the supply or purchase of materials, components and finished goods. If last year the volume of the concluded agreements amounted to more than 1.4 trillion sums, then today this figure according to preliminary estimates have totaled 1.5 trillion sums. All activities are conducted with the participation of specialists from ministries and departments, insurance companies, banks, organizations, specializing in the field of standardization and certification, which provide expert advice.

• IMF commends economic policy of Uzbekistan The mission of the Executive Directors of the International Monetary Fund (IMF), which consisted of Meg Landseyger, Agee Bakker, Amboise Faiola, Ho Jian Xiong, Thomas Moser and Klaus D. Stein, following the visit to Uzbekistan, held a press conference for local and foreign journalists, at which they noted the successes of the economic development of Uzbekistan in the conditions of the global financial crisis. Speaking on behalf of the delegation, the executive director from Germany Klaus Stein said that the delegation had arrived in Tashkent from Istanbul, where the main theme of the annual meeting of the IMF and the World Bank Group was the world economic crisis. According to him, the study and comparison of the impact of the crisis on the economies of different countries was one of the objectives of this mission’s visit to Uzbekistan. Klaus Stein expressed appreciation for the opportunity to meet a variety of stakeholders in the country, including representatives of the public and the private sector. Answering the reporters’ question on how the IMF assessed the anti-crisis program in Uzbekistan, Klaus Stein noted that “Uzbekistan has remained largely unaffected by the global economic crisis as a result of prudent policies, allowing the government to accumulate substantial resources required for growth in this period and be resistant to the crisis”. “This is also the result of a conscious policy of participation in global financial markets, pursued by the authorities,” he said. The IMF representative added that the government had developed a wide range of measures to stimulate the domestic demand. “We welcome these steps,” he said. Regarding the forecasts of economic growth in 2009-2010, the executive director from Switzerland Thomas Moser said that according to the latest publication of the IMF about the world economic outlook, the expectations of the economic growth in Uzbekistan this year are 7-8%, and in 2010 this figure is projected at a level no lower than in 2009. Klaus Stein also admitted that the view of the IMF in relation to Uzbekistan on a number of positions had changed, as the country could demonstrate the correctness of the pursued economic policies in the difficult conditions of the global financial crisis. “The IMF’s


view in terms of assessment of the economic policy in Uzbekistan, the pace of reforms, the policy of foreign borrowing, the state’s role in economic management and banking supervision in the recent years has largely changed. Undoubtedly, the global economic crisis, during which Uzbekistan has managed to prove the correctness of its economic policy, has contributed to this,” he stressed. Concluding the press conference, Klaus Stein on behalf of the delegation said: “We support the continuation of the excellent relations of the IMF with the official authorities of Uzbekistan.”

• Uzbekistan’s GDP grows 8% in Jan-Sep The gross domestic product of Uzbekistan showed an 8% growth in the first nine months of 2009, it was announced at the session of the Cabinet of Ministers on 16 October. The industrial production increased by 9.1%, agricultural production grew by 3.3%, services sector expanded by 15.8% and construction works increased by 33.5% in January-September. The state budget was implemented with a surplus of 0.2% to the GDP and the inflation levels did not exceed the forecast parameters, it was noted. The government said the anti-crisis program implemented in the country helped to successfully neutralize the negative influence of the world economic crisis on the economy and ensured its balanced and dynamic growth. The active investment policy and the speed-up of the most important projects have led to increase of the capital investments by 28.3%, including 2.1-times growth of foreign direct investments. A total of 156 technical modernization projects were implemented and 371 industrial objects (including 139 in food industry, 122 in construction materials sector, 71 in light and textile industry and 13 in machinery sector) were commissioned in the nine months. The measures of stimulation of the local producers like additional tax and customs preferences and expansion of the preferential crediting have resulted in growth of the consumer goods production by 13.7%. In the framework of the industrial localization program, production of more than 100 new types of production was launched and the volumes of production of localized goods increased twice, with sales of localized production reaching USD 2.6 billion. According to the government data, 743,500 new workplaces were created in the three quarters of this year, which is 36.4% more than in the same period of last year. Of that number, 311,100 workplaces were created in the small business sector, including 203,000 in the service sector and 77,900 in the home-based work sector. The Cabinet approved the draft Program of creation of workplaces and employment of the population for 2010, which should be approved by the Oliy Majlis (parliament). The document envisages creating 950,000 new workplaces next year, including 282,000 in the service sector, 208,000 in the home-based work sector and 61,300 in the field of social infrastructure development. The implementation of the state program “The year of rural development and improvement”, 4.7 million square meters of individual housing was built, and 577 km of gas and 1,680.8 km of water pipes were laid in January-September. 42 areas have been selected in the rural regions, where the construction of the new housing will be launched in the fourth quarter of 2009. The 2010 rural housing construction program envisages building 8,500 individual houses with the living area of 955,000 square meters. Of this, the construction of 840 houses with living area of 95,000 square meters will be started this year. A total of UZS 588.7 billion will be allocated for the financing of this program, including UZS 284.9 billion of preferential credits provided by Qishloq Qurilish Bank (Rural Construction Bank).


Social Front • Week of beauty and elegance

During Independence years under the leadership of President Islam Karimov extensive work on the development of national culture and art, creating the necessary conditions to familiarize them with the best samples, the effective activity of representatives of these areas is conducted. Public organizations along with the various ministries and departments, agencies and creative associations are actively involved in this process. This is evidenced by the activities of the Fund “Forum of Culture and Arts of Uzbekistan”. It is focused on the preservation of national heritage, the restoration of the ancient traditions of applied arts and crafts, providing assistance to artists to create conditions for the activities of young talent, support and promotion, the promotion of creative young talents at national and international scale. Competitions, national craft fairs, exhibitions and concerts, such as “Asrlar sadosi”, “New generation”, “Navkiron Uzbekistan”, “Kelajak ovozi», «Bazar Art» are striking examples. Huge cultural and educational value of these creative projects and their social orientation, are known not only in our country but also abroad. Week of Art – Art Week Style.uz – 2009 is one of the activities that attract the attention of connoisseurs of beauty industry not only from our country, but also from foreign countries. The peculiarity of the week of this year was that it demonstrates the achievements aimed at promoting and popularizing national heritage and values, culture, crafts, development of the traditions of “master-disciple”. During the week, the exhibition handicrafts and craftsmanship was organized, unique pieces of art were donstrated. Great interest among fans caused a special exposition of the Association of Antiquaries of Uzbekistan «Meros», exhibition of rarities. Art Week Art Week Style.uz – 2009, has become truly a holiday of beauty and elegance, was evidence of tremendous care provided in our country to the development of national art.

Business and Politics in the Muslim World Weekly Report

Central Asia October 24, 2009 to October 30, 2009

Uzma Siraj

Table of Contents Azerbaijan Political Front……………………………………………………………………….4 Geo Strategic Front………………………………………………………………….4 Economic /Energy Front…………………………………………………………….5 Social Front………………………………………………………………………….5 Kazakastan Political Front………………………………………………………………………..5 Geo Strategic Front………………………………………………………………….6 Economic /Energy Front…………………………………………………………….6 Social Front………………………………………………………………………….6


Kyrgyzstan Political Front………………………………………………………………………..7 Geo Strategic Front………………………………………………………………….7 Economic /Energy Front…………………………………………………………….7 Social Front………………………………………………………………………….8 Tajikistan Political Front………………………………………………………………………..8 Geo Strategic Front…………………………………………………………………..8 Economic /Energy Front……………………………………………………………..8 Social Front…………………………………………………………………………..9 Turkmenistan Political Front………………………………………………………………………...9 Geo Strategic Front…………………………………………………………………..9 Economic /Energy Front……………………………………………………………..9 Social Front…………………………………………………………………………10 Uzbekistan Political Front……………………………………………………………………….10 Geo Strategic Front………………………………………………………………….10 Economic /Energy Front…………………………………………………………….11 Social Front………………………………………………………………………….11 Outline Azerbaijan Political Front

• People do not believe having won municipal elections, an oppositionist could change something: Azerbaijan Liberal Democratic Party chief

• Any elections are very important for political parties: Azerbaijani parliamentarian Geo Strategic Front

• Turkish Parliamentary Delegation Arrives In Baku • Top U.S. Official Meets With Azerbaijani Officials, NGOs • Foreign Ministers of Azerbaijan and Armenia will meet OSCE Minsk Group Co-

Chairs in Luxembourg • Security in region requires combined efforts of Caspian littoral states: Azerbaijani

deputy FM • Azerbaijan to increase number of peacekeepers in Afghanistan • Palestine to open embassy in Azerbaijan

Economic /Energy Front • Turkey is ready to discuss payment of difference in cost of Azerbaijani natural

gas • Azerbaijan ranks third for volume of operations with WB in Europe and Central

Asia • Turkey will buy Azerbaijani gas at a new price • Azerbaijan not intends to pay off IMF loans ahead of time: minister

Social Front • Polish Awards For Azerbaijani Officials Attacked


• Statistics of human trafficking-related crimes released in Azerbaijan Kazakastan Political Front

• Jailed Kazakh Uranium Company Chief Requests Hospitalization • Two major opposition parties merge in Kazakhstan

Geo Strategic Front • Turkey-Kazakhstan relations hit peak • Kazakhstan to promote OSCE common vision of security issues

Economic /Energy Front • Kazakhstan will be a part of the Nabucco Project: Turkish president • Samsun-Ceyhan Pipeline Project Designed to Divert Kazakhstani Oil • Kazakhstan prepares for return of good old commercial banking • Kazakhstan may supply gas for Nabucco – energy ministry

Social Front • Kazakh Rights Activist Sent To Remote Labor Camp • U.S. Says Concerned With Kazakh Activist Verdict • Kazakhstan’s journalism goes through crisis, survey • Kazakh language development must not be discriminating against residents,

Nazarbayev Kyrgyzstan Political Front

• Kyrgyz Police Seeking Second Suspect In Journalist's Killing • President’s institute formed in Kyrgyzstan • New Foreign Minister appointed • Opposition criticizes presidential reforms

Geo Strategic Front • Hizb ut-Tahrir activists nabbed in Osh

Economic /Energy Front

• Kyrgyzstan To Pay Gas Debt To Uzbekistan • State-owned privatization to get through stock exchange in Kyrgyzstan • Kazakhstan to step out of Central Asian energy system

Social Front • At least 88% of Kyrgyz internal migrants move in search for jobs • Child social security system is disintegrated in Kyrgyzstan


• President promises to take efforts to ensure holding parliamentary elections at high level

Geo Strategic Front • Tajik President's Moscow Talks Inconclusive • President Rahmon holds a number of meetings in Moscow • Tajikistan will not get money from Russia for military base until 2014 • U.S. CENTCOM commander visits Tajikistan

Economic /Energy Front


• Russia to build three small power plants in Tajikistan • Iranian energy official gets acquainted with implementation of Iran-supported

projects in Tajikistan • Tajikistan, Poland to sign economic cooperation agreement

Social Front • EU-UNDP Project helps to reduce drug addiction in prisons • WEF’s Global Gender Gap Report 2009 ranks Tajikistan 87th out of 134

economies • A number of events dedicated to Unite Nations Day held in Dushanbe today


• Diplomatic corps of Turkmenistan meets on Caspian Sea coast Economic /Energy Front

• Turkmenistan completes section of gas line to China • Turkmenistan appoints representatives to IFAS and COMCEC • Members of Turkmen-American Business Council outline plans for cooperation

Social Front • Turkmen Environmental Activist Given Five-Year Jail Term • Moscow Protest Over Turkmen Environmentalist's Arrest • Turkmen Police Arrest Green Activist, HRW Says • Barack Obama congratulates President and people of Turkmenistan on

Independence Day • Ashgabat hosts XII Conference of World Turkmens • Turkmenistan celebrates 18th anniversary of independence

Uzbekistan Political Front

• Uzbekistan: The number of deputy Prime-Ministers is down to six Geo Strategic Front

• Pakistani Troops Capture Town Used By Uzbek Militants • Uzbekistan: Authorities take 27 suspected Islam militants into custody • European Union dropped last sanctions against Uzbekistan

Economic /Energy Front • Uzbekistan: The parliament promises to create one million jobs in 2010 • Uzbekistan: LG refrigerators to be produced in Samarqand

Social Front • Another Uzbek Student Dies During Cotton Harvest • EU Lifts Uzbek Sanctions Despite Rights Concerns




“Currently, our party is nominating candidates and collecting signatures,” Azerbaijan Liberal Democratic Party Chief Fuad Aliyev said commenting on his party’s preparation for the coming municipal elections.

• Any elections are very important for political parties: Azerbaijani parliamentarian "The list of candidates for municipal elections was defined at the meeting of political council of our party,” Chairman of the opposition Azerbaijan Democratic Reforms Party (ADRP) and member of the Azerbaijani Milli Majlis (parliament) Asim Mollazade said. Geo Strategic Front

• Turkish Parliamentary Delegation Arrives In Baku A Turkish parliamentary delegation has arrived in the Azerbaijani capital, Baku, for a visit aimed at easing tensions over Turkey's rapprochement with Armenia, RFE/RL's Azerbaijani Service reports.

• Top U.S. Official Meets With Azerbaijani Officials, NGOs Visiting U.S. Assistant Secretary of State for European and Eurasian Affairs Tina Kaidanow met with Azerbaijani officials and representatives of nongovernmental organizations in Baku, RFE/RL's Azerbaijani Service reports

• Foreign Ministers of Azerbaijan and Armenia will meet OSCE Minsk Group Co-Chairs in Luxembourg

The Co-Chairs of the OSCE Minsk Group, Ambassadors Yury Merzlyakov of Russia, Bernard Fassier of France, and Robert Bradtke of the United States will meet Azerbaijani Foreign Minister Elmar Mammadyarov and Armenian Foreign Minister Edward Nalbandian in Luxembourg on October 25-27, says the statement by the Co-Chairs, released at the official Web site of organization on Friday.

• Security in region requires combined efforts of Caspian littoral states: Azerbaijani deputy FM

Today the chief aim of Caspian littoral states is to combine efforts to ensure security in the region amid the world globalization, said Deputy Foreign Minister of Azerbaijan Khalaf Khalafov. • Azerbaijan to increase number of peacekeepers in Afghanistan

The number of the Azerbaijani servicemen serving in International Security Assistance Force (ISAF) in Afghanistan will be increased, sources in the government told said.

• Palestine to open embassy in Azerbaijan Palestine will open embassy in Azerbaijan. The decision in this respect was made during Azerbaijani and Palestinian foreign ministers’ meeting in Baku. Palestinian Foreign Minister Riyad al-Maliki payed a two-day visit to Azerbaijan on Oct. 29. Economic /Energy Front

• Turkey is ready to discuss payment of difference in cost of Azerbaijani natural gas

Turkey will pay difference in price for the natural gas it bought from Azerbaijan after 2008, Turkey’s Energy and Natural Resources Minister Taner Yildiz, who is visiting Iran together with Prime Minister Recep Tayyip Erdogan, said.

• Azerbaijan ranks third for volume of operations with WB in Europe and Central Asia

Agreements on financing of 50 projects totaling $2.607 billion were signed during the period of the World Bank operations in Azerbaijan, Azerbaijani Vice Prime Minister Abid Sharifov said.


• Turkey will buy Azerbaijani gas at a new price Turkey will pay the difference between the old price it has paid for Azerbaijani gas since April 2008 after the gas agreement expired and the new price to be agreed on with Azerbaijan, said Turkish Energy Minister Taner Yilldiz.

• Azerbaijan not intends to pay off IMF loans ahead of time: minister The Azerbaijani Ministry of Finance does not consider it necessary to premature pay off the loans of the International Monetary Fund. Finance Minister Samir Sharifov said that the Central Bank of Azerbaijan on schedule pays off IMF loans. Social Front

• Polish Awards For Azerbaijani Officials Attacked Poland's decision last week to award a number of Azerbaijani officials with Poland's highest orders has provoked critical reactions both there and in Azerbaijan, RFE/RL's Azerbaijani Service reports.

• Statistics of human trafficking-related crimes released in Azerbaijan A total of 71 human trafficking cases were registered and 18 groups and one organized group was neutralized and totally 65 criminals were unmasked in Azerbaijan in the past period of 2009, a report by the National Coordinator on Combating Human Trafficking said. Kazakastan Political Front

• Jailed Kazakh Uranium Company Chief Requests Hospitalization The former president of Kazakhstan's Uranium-producing giant KazAtomProm says he needs to be hospitalized, RFE/RL's Kazakh Service reports

• Two major opposition parties merge in Kazakhstan The delegates to a congress of the two major Kazakh opposition parties, the National Social-Democratic Party and Azat (Freedom), have decided to merge into one party called National Social Democratic Party Azat.National Social Democratic Party leader Zharmakhan Tuyakbai and Azat leader Bulat Abilov announced the unification plans several days ago. Geo Strategic Front

• Turkey-Kazakhstan relations hit peak Following an almost decade-and-a-half stall in Turkey's active engagement in brethren Turkic countries in Central Asia during the late Turkish president Turgut Özal's tenure, Turkey has started to build strong and lasting political and economic relations with Central Asian countries

• Kazakhstan to promote OSCE common vision of security issues Kazakhstan plans to promote a common security vision in its chairmanship of the Organization for Security and Cooperation in Europe (OSCE) in 2010, Kazakh Deputy Defense Minister Lt. Gen. Bulat Sembinov told a Monday press briefing. Economic /Energy Front

• Kazakhstan will be a part of the Nabucco Project: Turkish president . Turkish President Abdullah Gul said Friday there were strong reasons for Turkey and Kazakhstan to work together, Anadolu Agency reported. Speaking at the Turkish-Kazakh Business and Investment Forum in Istanbul, Gul said that he invited the businessmen of the two countries to cooperate more.

• Samsun-Ceyhan Pipeline Project Designed to Divert Kazakhstani Oil


Russia and Turkey, with Italy in tow, have seemingly struck a grand oil and gas bargain in the Black Sea. On October 19 in Milan, government ministers and corporate officials from the three countries signed agreements to move ahead with the Russian South Stream gas pipeline on the seabed and, concurrently, a Novorossiysk-Samsun-Ceyhan oil transport system centered on a pipeline across Anatolia.

• Kazakhstan prepares for return of good old commercial banking . Now that Kazakhstan’s economy is starting to revive, the country’s major banks are preparing for a resumption of growth in the sector - but a period of more cautious and conservative growth.

• Kazakhstan may supply gas for Nabucco – energy ministry Kazakhstan may supply gas for Nabucco project if there are available gas volumes, said Meiram Kanapyanov, the director of the multilateral cooperation department of the Kazakh Ministry of Energy and Mineral Resources. Social Front

• Kazakh Rights Activist Sent To Remote Labor Camp Leading Kazakh human rights activist Yevgeny Zhovtis has been transferred from Almaty to a labor camp in northeastern Kazakhstan, RFE/RL's Kazakh Service reports. Zhovtis, director of the nongovermental organization Bureau of Human Rights, was sentenced to four years in prison last month for accidentally striking and killing a man with his car.

• U.S. Says Concerned With Kazakh Activist Verdict The United States has criticized a tough sentence for a Kazakh human rights activist handed down months ahead of Kazakhstan's chairmanship of a European human rights body.

• Kazakhstan’s journalism goes through crisis, survey The international center of journalism, MediaNet, after surveying 350 reporters, editors-in-chiefs and media owners concluded that the development of Kazakhstan’s journalism has frozen. "Over 50% journalists believe that the Kazakh media is stagnating,” MediaNet director Vyacheslav Abramov said at a press conference on Thursday at the Interfax-Kazakhstan press center in Almaty on Thursday.

• Kazakh language development must not be discriminating against residents, Nazarbayev

The international center of journalism, MediaNet, after surveying 350 reporters, editors-in-chiefs and media owners concluded that the development of Kazakhstan’s journalism has frozen. "Over 50% journalists believe that the Kazakh media is stagnating,” MediaNet director Vyacheslav Abramov said at a press conference on Thursday at the Interfax-Kazakhstan press center in Almaty on Thursday. Kyrgyzstan Political Front

• Kyrgyz Police Seeking Second Suspect In Journalist's Killing Kyrgyzstan's Interior Ministry says that a second suspect is being sought in the 2007 murder of independent journalist Alisher Saipov, RFE/RL's Kyrgyz Service reports.

• President’s institute formed in Kyrgyzstan The President of Kyrgyzstan has signed a decree on establishment of government bodies, forming the president’s institute. The following government bodies have been established to “create condition for formation of national and state ideology, rational balance


between innovations and traditions, state government bodies and interests of groups, conduction of dialogue and securing of partnership between the state authority and civil society:”

• New Foreign Minister appointed Kadyrbek Sarbaev was again appointed a Kyrgyz Minister of Foreign Affairs as the President Bakiev signed a relevant decree in Bishkek on Monday.

• Opposition criticizes presidential reforms Kyrgyz opposition has spread an official statement, harshly criticizing the just-started governmental reforms pushed by the president Bakiev. “Despite the large-scale propaganda the reform is just a cover for consolidation of power in the president’s hands. Geo Strategic Front

• Hizb ut-Tahrir activists nabbed in Osh Three Hizb ut-Tahrir activists have been nabbed in Osh (Kyrgyzstan), press service of the Interior Ministry of Kyrgyzstan reported. Economic /Energy Front

• Kyrgyzstan To Pay Gas Debt To Uzbekistan Kyrgyzstan plans to pay its debt for Uzbek natural gas by December 1, RFE/RL's Kyrgyz Service reports. Deputy Prime Minister Akylbek Japarov told RFE/RL that the gas debt will be discussed by the Kyrgyz parliament on October 30.

• State-owned privatization to get through stock exchange in Kyrgyzstan Privatization of state-owned stakes will get through the Kyrgyzstan stock exchange for the first time in years, one of the Bishkek finance companies said. The Kyrgyz Stock Exchange officially informed about the auction sale of three companies’ state-owned stakes to run on October 30, 2009.

• Kazakhstan to step out of Central Asian energy system Kazakhstan intends to step out of the Central Asian energy system, the Kazakh media reported. According to the Kazakhstan Electricity Grid Operating Company (KEGOC), Kazakh energy system is able to provide the internal suppliers and support Kyrgyzstan Social Front

• At least 88% of Kyrgyz internal migrants move in search for jobs About 88% internal migrants of Kyrgyzstan move in search for jobs, the American University in Central Asia’s survey said

• Child social security system is disintegrated in Kyrgyzstan Analytical study Evaluation of Child Protection System, held by an international expert Irina Malanchuk, with assistance of UNICEF in Kyrgyzstan says that child social security system in our country is disintegrated. Tajikistan Political Front


President Emomali Rahmon who is also leader of ruling People’s Democratic Party (PDPT) has promised to take efforts to ensure holding of the upcoming parliamentary elections at the high level and within the framework of law. Geo Strategic Front

• Tajik President's Moscow Talks Inconclusive


Tajik President Emomali Rahmon's talks with Russian counterpart Dmitry Medvedev near Moscow have produced no significant results, RFE/RL's Tajik Service reports.

• President Rahmon holds a number of meetings in Moscow President Emomali Rahmon’s state visit to Russia concluded and he returned to Dushanbe Friday evening, according to presidential press service. On October 21, President Rahmon and his Russian counterpart, President Dmitry Medvedev, had an informal meeting at the Moscow regional presidential residence Barvikha.

• Tajikistan will not get money from Russia for military base until 2014 Under an agreement signed between Tajikistan and Russia in October 2004, Russian military base 201 in Tajikistan will work here on an unpaid basis until 2014, Tajik Foreign Minister Hamrokhon Zarifi told reporters in Dushanbe today.

• U.S. CENTCOM commander visits Tajikistan , General David H. Petraeus, Commander, U.S. Central Command (CENTCOM), met with President Emomali Rahmon and a number of Tajik military officials during his October 26 visit to Tajikistan. According to presidential press service, in the course of the talks, President Rahmon noted that Tajikistan was interested in establishment of lasting peace in Afghanistan and ready to expand its cooperation with the United States in that and other directions. Economic /Energy Front

• Russia to build three small power plants in Tajikistan Russia plans to build three small hydropower plants in Tajikistan and hopes to obtain a controlling stake in the project, the Russian energy minister said Sunday (October 25), RIA Novosti reported.

• Iranian energy official gets acquainted with implementation of Iran-supported projects in Tajikistan

-- Iran’s Deputy Minister of Energy, Hamid Chitchian, heading an Iranian delegation, paid a two-day visit to Tajikistan on October 22-23. According to the Iranian Embassy in Dushanbe, the purpose of the visit was for to hold discussions with a number of Tajik officials and get acquainted with the process of implementation of the Iran-sponsored projects in Tajikistan.

• Tajikistan, Poland to sign economic cooperation agreement Tajik-Polish political and economic consultations will begin in Tajikistan next week, Slavomir Stsalkowski, the Counselor of Polish Embassy in Tajikistan, told reporters in Dushanbe yesterday. Social Front

• EU-UNDP Project helps to reduce drug addiction in prisons Today, the EU-UNDP Central Asia Drug Action Programme (CADAP) handed over computers, office and household equipment, and sport inventory to the “SPIN Plus” organization for further use at the “Half-Way House” for drug addicts at the Prison Central Hospital located in Dushanbe, according to the Delegation of the European Commission in Tajikistan.

• WEF’s Global Gender Gap Report 2009 ranks Tajikistan 87th out of 134 economies

The World Economic Forum’s (WEF) Global Gender Gap Report 2009 ranks Tajikistan 87th out of 134 economies. According to the report, Tajikistan gains two places in the rankings improving its scores on the labor force participation subindex.


• A number of events dedicated to Unite Nations Day held in Dushanbe today A number of events dedicated to the United Nations Day are being held in Dushanbe today. According the UNDP CO in Tajikistan, a concert of classical music, conducted by the Italian director Gerardo Collela is being held at the Opera and Ballet Theatre in Dushanbe today afternoon. An exhibition of activities of the UN agencies in Tajikistan has also been organized at the theatre. Turkmenistan Political Front Geo Strategic Front

• Diplomatic corps of Turkmenistan meets on Caspian Sea coast The enlarged meeting of the diplomatic corps of Turkmenistan tool place in the coastal town of Turkmenbashi on October 29. Heads of diplomatic missions and consulates of Turkmenistan abroad and representatives of the Humanitarian Association of World Turkmens participated in the meeting. Economic /Energy Front

• Turkmenistan completes section of gas line to China Turkmenistan has completed construction on its 188-km section of a 7,000-km natural gas pipeline that extends from Turkmenistan to China, according to official media.

• Turkmenistan appoints representatives to IFAS and COMCEC President Gurbanguly Berdimuhamedov signed a decree according to which Vice Premier Myratgeldy Akmammedov has been appointed member of the Board of the International Fund for Saving the Aral Sea from Turkmenistan.

• Members of Turkmen-American Business Council outline plans for cooperation A meeting of the Turkmen-American Business Council (TABC) was held in Ashgabat. It was attended by a high-profile delegation of the U.S. business elite led by executive director of TABC Eric Stewart. Social Front

• Turkmen Environmental Activist Given Five-Year Jail Term Prominent Turkmen environmental activist Andrei Zatoka has been sentenced to five years in prison for hooliganism, RFE/RL's Turkmen Service reports. Zatoka, 53, was found guilty in a court in Dashoguz of attacking a man in a market in the northern Turkmen city on October 20.

• Moscow Protest Over Turkmen Environmentalist's Arrest -- Activists demonstrated at the Turkmen Embassy in Moscow to protest the arrest in Turkmenistan of environmentalist Andrei Zatoka, RFE/RL's Turkmen Service reports. On October 27, some 20 protesters held signs saying "Freedom For Zatoka," "No to repression in Turkmenistan," and "Eight-day investigation reminds us of the Stalin era!"

• Turkmen Police Arrest Green Activist, HRW Says Police in the Central Asian state of Turkmenistan have arrested a prominent environmental activist in what appeared to be a politically motivated action, Human Rights Watch (HRW) has said. Andrei Zatoka was arrested in the city of Dashoguz this week after being attacked by a stranger at a market, HRW said in a statement on October 23.

• Barack Obama congratulates President and people of Turkmenistan on Independence Day


President of Turkmenistan Gurbanguly Berdimuhamedov received a message from U.S. President Barack Obama. As the Turkmenistan.ru correspondent reports from Ashgabat, the message was published today in the central print media of the country.

• Ashgabat hosts XII Conference of World Turkmens The XII Conference of the Humanitarian Association of World Turkmens (HAWT) was held in Ashgabat on October 23. The conference brought together representatives of the Turkmen diasporas from 18 states and delegates from all parts of Turkmenistan.

• Turkmenistan celebrates 18th anniversary of independence Turkmenistan marks the main national holiday - Independence Day. By tradition, the day began with a flower-laying ceremony at the Monument of Independence, which was attended by President of Turkmenistan Gurbanguly Berdimuhamedov Uzbekistan Political Front

• Uzbekistan: The number of deputy Prime-Ministers is down to six 27 Rustam Kasymov, the deputy Prime-Minister of Uzbek government in charge of social issues, science, education, healthcare, culture and contacts with CIS partners, was released from his position, Uzmetronom.com reports. Geo Strategic Front

• Pakistani Troops Capture Town Used By Uzbek Militants Pakistani troops have surrounded Kaniguram, a key base for Uzbek Islamic militants in Pakistan's South Waziristan region, RFE/RL's Uzbek Service reports. The town overlooks Karama, a city reportedly being used as a training base for foreign terrorist groups like the Islamic Movement of Uzbekistan (IMU).

• Uzbekistan: Authorities take 27 suspected Islam militants into custody Twenty-seven individuals have been arrested in Uzbekistan on suspicion of religious extremism. A source tells EurasiaNet the authorities are building a case that connects the detainees to a series of murders in Tashkent during the summer. Economic /Energy Front

• Uzbekistan: The parliament promises to create one million jobs in 2010 On October 29 the legislative house of Olyi Mazhlis (the parliament) of Uzbekistan approved jobs creation and public employment program for 2010, according to which 950 thousand new jobs will be created in the republic, Gazeta.uz reports. Specifically, over 280 thousand jobs are to be established in service sector, 210 thousand jobs – in outwork and over 60 thousand jobs – in development of production and social infrastructure.

• Uzbekistan: LG refrigerators to be produced in Samarqand By the end of 2009 OJSC SINO, based in Samarqand (Uzbekistan), will start the production of LG Electronics refrigerators. At this point, the final installation of refrigerators assembly line, based on the technology of famous South Korean company, is in progress. Social Front

• Another Uzbek Student Dies During Cotton Harvest A 10th young person has died in Uzbekistan while involved in compulsory work on the cotton harvest, RFE/RL's Uzbek Service reports. A witness told RFE/RL that a bus filled with students overturned as it was driving into a cotton field near the western city of Urgench, and one boy died as a result.


• EU Lifts Uzbek Sanctions Despite Rights Concerns The European Union has lifted sanctions on Uzbekistan, despite concerns about human rights in the former Soviet republic. Although many EU states are concerned about the rights situation, the 27-country bloc wants to boost relations with a country that could be an important energy supplier and a route for supplies for the Western military mission in Afghanistan. Detailed Report Azerbaijan Political Front


“Currently, our party is nominating candidates and collecting signatures,” Azerbaijan Liberal Democratic Party Chief Fuad Aliyev said commenting on his party’s preparation for the coming municipal elections. “Our party will nominate about 1,000 candidates, that is, for more than half of municipalities,” he said. He said the party is in the first stage of election campaign and collection of signatures proceeds with difficulty. "The fact is that voters do not trust the candidates, no matter from what party. They basically do not believe in the municipalities which is a big problem. Theoretically, when the creation of the first municipalities in1999, they should have granted opportunities. But over the years, on the contrary, they have diminished opportunities. Therefore, voters hardly give signature,” Aliyev said. "The population of the country have distrust in the municipalities. People do not believe that having won municipal elections, an oppositioner can make a difference, can somehow have influence the regional level. But I think that our candidates still gather the required number of signatures,” he added. ALDP chief said that once the registration of candidates completes, "we will try to increase public confidence in the candidates, tell about the candidates and will issue their platforms - in this area we can work and convince the public".Azerbaijan will hold municipal elections on Dec. 23. Elections will be held for 15, 682 places in the 1, 718 municipalities. All voters besides those with the status of internally displaced persons are illegible to participate in the municipal elections. Voting will take place in 118 constituencies. Starting from Oct. 8 individuals participating in the municipal elections can nominate for the elections. The campaign to collect signatures will continue till Nov. 13. Those who nominate themselves as candidates must submit signatures of voters to the election commissions no later than Nov. 13. Lists with signatures received after this date will not be accepted According to the schedule, the registration of observers in the CEC will continue until Dec. 13 and in the district electoral commissions - till Dec. 18. Organizations willing to hold “exit poll” are required submit documents to the CEC till Dec. 3.

• Any elections are very important for political parties: Azerbaijani parliamentarian "The list of candidates for municipal elections was defined at the meeting of political council of our party,” Chairman of the opposition Azerbaijan Democratic Reforms Party (ADRP) and member of the Azerbaijani Milli Majlis (parliament) Asim Mollazade said. He said presently candidates design signature sheets. "I think a few more candidates will be added to the total number of candidates nominated by us, and their total number will


be several hundred people. We will try to cover half of all urban municipalities. The exact number of our candidates will be determined after the registration completes,” the MP said. Mollazade said that after this the party will continue to prepare for the participation of candidates in municipal elections. "We have already held several workshops and trainings for our regional organizations in Baku. We will continue to conduct joint training with international organizations,” he said. The ADRP chairman also noted importance of the upcoming municipal elections."I think any elections are very important for political parties to be in the form they need. Also, I think municipalities are foundation of democracy, because in any society, democracy does not begin from the top, but vice versa,” Mollazade said. Azerbaijan will hold municipal elections on Dec. 23. Elections will be held for 15, 682 places in the 1, 718 municipalities. All voters besides those with the status of internally displaced persons are illegible to participate in the municipal elections. Voting will take place in 118 constituencies. Starting from Oct. 8 individuals participating in the municipal elections can nominate for the elections. The campaign to collect signatures will continue till Nov. 13. Those who nominate themselves as candidates must submit signatures of voters to the election commissions no later than Nov. 13. Lists with signatures received after this date will not be accepted According to the schedule, the registration of observers in the CEC will continue until Dec. 13 and in the district electoral commissions - till Dec. 18. Organizations willing to hold “exit poll” are required submit documents to the CEC till Dec. 3. Geo Strategic Front

• Turkish Parliamentary Delegation Arrives In Baku BAKU -- A Turkish parliamentary delegation has arrived in the Azerbaijani capital, Baku, for a visit aimed at easing tensions over Turkey's rapprochement with Armenia, RFE/RL's Azerbaijani Service reports. The Turkish Embassy in Baku told RFE/RL that the delegation consists of 10 members of Turkey's Grand National Assembly and will hold talks with several key Azerbaijani officials, including President Ilham Aliyev and parliament speaker Oktay Asadov. The Turkish lawmakers will also take part on October 29 in a special event in Baku's Gulistan Palace devoted to Turkish independence day, which was established on October 29, 1923. Turkish-Azerbaijani relations became tense after Turkish-Armenian protocols that could lead to improved relations were signed in Zurich on October 10. Aliyev made very critical comments about Turkey during a cabinet session on October 16.

• Top U.S. Official Meets With Azerbaijani Officials, NGOs BAKU -- Visiting U.S. Assistant Secretary of State for European and Eurasian Affairs Tina Kaidanow met with Azerbaijani officials and representatives of nongovernmental organizations in Baku, RFE/RL's Azerbaijani Service reports. Baku-based political observer Hikmet Gadjizade told RFE/RL that at the meeting with NGOs on October 23 Kaidanow discussed democratization, human rights, and freedom of speech and the media, as well as the case of the detained Azerbaijani bloggers. According to Gadjizade, Kaidanow stressed at the meeting that Washington is monitoring the democratization process and will be assisting with any problems. Kaidanow also held talks with Azerbaijani President Ilham Aliyev.


This is Kaidanow's first visit to Azerbaijan since taking her post in August. Kaidanow also visited Armenia this week, where she held talks with Armenian President Serzh Sarkisian and Foreign Minister Eduard Nalbandian.

• Foreign Ministers of Azerbaijan and Armenia will meet OSCE Minsk Group Co-Chairs in Luxembourg

The Co-Chairs of the OSCE Minsk Group, Ambassadors Yury Merzlyakov of Russia, Bernard Fassier of France, and Robert Bradtke of the United States will meet Azerbaijani Foreign Minister Elmar Mammadyarov and Armenian Foreign Minister Edward Nalbandian in Luxembourg on October 25-27, says the statement by the Co-Chairs, released at the official Web site of organization on Friday. "The Co-Chairs will also travel to Luxembourg on October 25-27 to meet Armenian Foreign Minister Nalbandian and Azerbaijani Foreign Minister Mammadyarov. They will address plans for their next trip to Baku and Yerevan in November and preparation for discussion of the Nagorno-Karabakh settlement at the OSCE Ministerial Council in December 2009", the statement says. According to statement, the Co-Chairs attended a "Retreat on OSCE Mediation Activities" hosted on October 22-23 by the OSCE Conflict Prevention Center in Vienna, Austria. After the retreat, the Co-Chairs provided a quarterly briefing to the OSCE Minsk Group. "On the margins of the retreat, each Ambassador individually participated in different bilateral meetings with a variety of interlocutors, including, among others, Greek Ambassador Marinaki, representing the OSCE Chairman-in-Office; OSCE Secretary General Perrin de Brichambaut; Armenian Ambassador Hovakimian; Azerbaijani Ambassador Ismayilov; Kazakh Ambassador Abdrakhmanov; Swedish Ambassador Bard-Bringeus, representing the EU presidency; and Turkish Deputy Undersecretary Cevikoz", the statement says.

• Security in region requires combined efforts of Caspian littoral states: Azerbaijani deputy FM

Today the chief aim of Caspian littoral states is to combine efforts to ensure security in the region amid the world globalization, said Deputy Foreign Minister of Azerbaijan Khalaf Khalafov. "We're in a way of new cooperation, at this meeting we developed a general concept for the realization of common goals in a specific project," Khalafov said to press conference on the results of the meeting on security in the Caspian region. The deputy minister said that Azerbaijan had developed a draft agreement, which was presented to the representatives of the Caspian states. He said the project envisages significant collaboration in combating terrorism, organized crime, arms trafficking and human trafficking, drug trafficking and smuggling. This project is planned to be discussed in Baku in the first quarter of 2010, Khalafov said, expressing hope that at future meetings this project will be approved. "I believe that there are great prospects for this cooperation, which will be used for turning the Caspian Sea into a peaceful water area," said Khalafov. He noted that the meetings in Baku discussed only security issues. The question of the status of the Caspian Sea was not discussed, Khalafov said. "There are many issues to be discussed at the experts' level," he said.

• Azerbaijan to increase number of peacekeepers in Afghanistan The number of the Azerbaijani servicemen serving in International Security Assistance Force (ISAF) in Afghanistan will be increased, sources in the government told said. According to the source, taking into account the request of NATO and Afghanistan government, the related bodies are doing paperwork. The necessary documents will be


possibly submitted to the parliament soon. It is reported that at the meeting of NATO defense ministers and ISAF defense ministers in Bratislava (Slovakia) last week Azerbaijan gave an oral agreement to increase its military contingent. According to the agreement, NATO will assume the expenses of the personnel and material-technical provision. Member of Azerbaijani parliament’s committee for security and defense Zahid Oruj said number of Azerbaijani peacekeepers in Afghanistan may be increased.“Azerbaijan may increase its forces in Afghanistan. As far as I know, NATO and Afghanistan requested it. Such a proposal must be made by the head of state to the parliament,” he said.

• Palestine to open embassy in Azerbaijan Palestine will open embassy in Azerbaijan. The decision in this respect was made during Azerbaijani and Palestinian foreign ministers’ meeting in Baku. Palestinian Foreign Minister Riyad al-Maliki payed a two-day visit to Azerbaijan on Oct. 29. Al-Maliki discussed cooperation on international arena, ways to resolve Middle East and Nagorno-Karabakh problems at a meeting with Azerbaijani counterpart Elmar Mammadyarov The ministers also decided to open Palestine’s embassy in Azerbaijan. The Palestinian diplomat will also meet Speaker of Azerbaijani Milli Majlis (parliament) Ogtay Asadov. Economic /Energy Front

• Turkey is ready to discuss payment of difference in cost of Azerbaijani natural gas

Turkey will pay difference in price for the natural gas it bought from Azerbaijan after 2008, Turkey’s Energy and Natural Resources Minister Taner Yildiz, who is visiting Iran together with Prime Minister Recep Tayyip Erdogan, said. Yildiz said Azerbaijani delegation will arrive in Ankara to continue the talks on natural gas on Oct. 28. Yildiz also said that Turkey will sign natural gas contract will be signed with Iran as well. Under the contract, Iran will deliver 35 bn cu m gas to Europe via Turkey.

• Azerbaijan ranks third for volume of operations with WB in Europe and Central Asia

Agreements on financing of 50 projects totaling $2.607 billion were signed during the period of the World Bank operations in Azerbaijan, Azerbaijani Vice Prime Minister Abid Sharifov said. "Today Azerbaijan has already completed realization of 26 projects for financing of which the Bank has allocated $585 million. Currently 24 projects worth 2.022 billion are under implementation,” Sharifov said. The Bank issued 54 percent of funds for transport sector, 22 per cent - water supply and sewerage system, 8 percent - environmental protection, 7 percent - social sector, 4 percent - institution building and three percent for the education and agriculture. "In recent years the World Bank portfolio in Azerbaijan has more than doubled, and the country has successfully implemented funding from the International Bank for Reconstruction and Development,” the vice prime minister said. Under the current strategy on bank operations in the country, it was decided to allocate more than $200 million to finance road construction and to boost capacity in formulating public investment programs in 2009. "Currently Azerbaijan has the third largest WB portfolio in Europe and Central Asia after Turkey and Kazakhstan,” Sharifov said. “It is not surprising that the government consultations on the definition of long-term prospects of socio-economic development of Azerbaijan is being held with high-rank WB officials,” he said.

• Turkey will buy Azerbaijani gas at a new price


Turkey will pay the difference between the old price it has paid for Azerbaijani gas since April 2008 after the gas agreement expired and the new price to be agreed on with Azerbaijan, said Turkish Energy Minister Taner Yilldiz. He said Turkey has continued to import natural gas from Azerbaijan although the gas supply agreement expired in April 2008. "Today we no longer buy low-priced gas from Azerbaijan. In accordance with the new price to be agreed upon, we will pay the difference", he said, adding that Turkey is continuing talks with Azerbaijan’s SOCAR on natural gas, and hopes to reach an agreement soon. Turkish media report that Turkey will have to pay at least $1.1 billion to Azerbaijan as price difference compensation if the new gas price is around $250 per 1,000 cubic meters, compared to the current price of $120.

• Azerbaijan not intends to pay off IMF loans ahead of time: minister The Azerbaijani Ministry of Finance does not consider it necessary to premature pay off the loans of the International Monetary Fund. Finance Minister Samir Sharifov said that the Central Bank of Azerbaijan on schedule pays off IMF loans. "The Central Bank manages these loan resources. A small amount of debt remained. We do not consider it necessary to prematurely pay them off," minister said. Sharifov said that Azerbaijan does not intend to appeal to IMF for credit support in future. Social Front

• Polish Awards For Azerbaijani Officials Attacked BAKU -- Poland's decision last week to award a number of Azerbaijani officials with Poland's highest orders has provoked critical reactions both there and in Azerbaijan, RFE/RL's Azerbaijani Service reports. Polish President Lech Kaczynski on October 17 presented Azerbaijani Interior Minister Ramil Usubov and National Security Ministry head Eldar Mahmudov with the Officer Grand Cross. Foreign Minister Elmar Mammadyarov and Energy and Industry Minister Natiq Aliyev received the Medal of Commander Grand Cross. Isa Qambar, the head of the oldest Azerbaijani opposition party, Musavat, told RFE/RL that Poland has honored an authoritarian regime out of political and economic considerations. Pawel Wosik, director of the Eastern Foundation in Poland and coordinator of the eastern program at the Forum of Young Diplomats, told RFE/RL that he received "this information with embarrassment and disbelief." "The awarded ministers are part of the regime that acts against the democratic opposition and independent media," Wosik said. The Polish presidential press office supplied RFE/RL with a written statement about the honors."During official visits of presidents, it is a common and globally accepted practice to award state decorations to distinguished individuals who contributed to developing relations between certain countries," the statement reads.

• Statistics of human trafficking-related crimes released in Azerbaijan A total of 71 human trafficking cases were registered and 18 groups and one organized group was neutralized and totally 65 criminals were unmasked in Azerbaijan in the past period of 2009, a report by the National Coordinator on Combating Human Trafficking said. The report said 47 of 82 human trafficking victims, including one child were sent to the rehabilitation centers where they received legal, medical and psychological assistance. Most of them were reintegrated into the society; 17 were provided with jobs and 32 were sent to the different vocational courses where they received certificates. Azerbaijan Owners Confederation supported 9 of them“Children received relevant assistance and one of them was placed to the boarding school by the Ministry of


Education and three – to the kindergartens. Significant measures were taken to improve work toward legal, medical and psychological aid to the human trafficking victims and additional health centers were created to provide them with medical aid. Most of the victims were checked up and received necessary aid. A total of 76 human trafficking victims received single money compensations, 43 received aid from the Human Trafficking Victims Support Fund and according to the court decisions 11 people received compensation for material damage they suffered as a result of crimes. Eight of 5,163 calls received on hotline were about human trafficking, 27 – about immoral places and involvement in prostitution. Other calls were about the job searches and education in foreign countries, marriages with foreigners and etc. About 160 people were brought to justice for 217 criminal cases, including 72 involvements in prostitution, 134 keeping the immoral places. As many as 749 women involved in prostitution were administratively punished; 1,185 people were brought to justice for 1298 human trafficking facts found out in 2005-2008 and in the past period of this year. A total of 192 criminal groups, including 15 organized groups were neutralized. Kazakastan Political Front

• Jailed Kazakh Uranium Company Chief Requests Hospitalization ASTANA -- The former president of Kazakhstan's Uranium-producing giant KazAtomProm says he needs to be hospitalized, RFE/RL's Kazakh Service reports. Mukhtar Dzhakishev was released from the hospital and returned to the National Security Committee's (KNB) detention center in Astana on October 21. His lawyer, Nurlan Beisekeyev, told RFE/RL that he saw his client on October 26 and that he looked very sick. Dzhakishev told Beisekeyev that detention center officials had to call an ambulance for him because he had high blood pressure. Last week, Dzhakishev passed out and again an ambulance was called. Beisekeyev says he is not able to obtain his client's medical files with more information about his health problems. KNB officials told RFE/RL that Dzhakishev does not need hospitalization. Dzhakishev and a number of his associates were sacked from their positions and officially charged with financial mismanagement and corruption in May. He has been kept in a cell at a KNB detention center since then. His relatives and other supporters say the case against him is politically motivated.

• Two major opposition parties merge in Kazakhstan Almaty. October 26. Interfax-Kazakhstan – The delegates to a congress of the two major Kazakh opposition parties, the National Social-Democratic Party and Azat (Freedom), have decided to merge into one party called National Social Democratic Party Azat.National Social Democratic Party leader Zharmakhan Tuyakbai and Azat leader Bulat Abilov announced the unification plans several days ago. The Saturday congress in Almaty, which was attended by more than 440 delegates, unanimously supported the decision. The delegates also decided that Tuyakbai and Abilov will be co-chairmen of the unified party. Amirzhan Kosanov, a first deputy chairman of the National Social Democratic Party, was elected the general secretary of the unified party. The new party's political council will be comprised of 53 people. After the consolidation, the new party will number about 400,000 members. Tuyakbai earlier served as a prosecutor general and later as a parliamentary speaker. Abilov is a successful businessman and a former parliamentarian representing the ruling party Otan, which is now called Nur Otan.


Geo Strategic Front • Turkey-Kazakhstan relations hit peak

Following an almost decade-and-a-half stall in Turkey's active engagement in brethren Turkic countries in Central Asia during the late Turkish president Turgut Özal's tenure, Turkey has started to build strong and lasting political and economic relations with Central Asian countries. It was during Turkmenistan's President Gurbanguly Berdimuhamedov's visit to Turkey when Turkey took the first step to establish good relations with Central Asia's pro-Russian countries. President Abdullah Gül and Kazakh President Nursultan Nazarbayev signed a strategic partnership agreement on Thursday to boost political and economic relations between Turkey and Kazakhstan, a long-expected and belated deal according to some observers. Turkey was the first country to recognize Kazakhstan when it got its independence from the former Soviet Union in late 1991. President Özal called Kazakh President Nazarbayev an hour after its declaration of independence and congratulated him. Turkey established diplomatic relations between the two countries in four months' time. Turkish contractors and investors have made substantial progress in the past two decades and have contributed considerably to the economic development of Kazakhstan. Turkey's contribution to education in Kazakhstan is also noteworthy; there are two Turkish universities and 28 Turkish schools in the country. During his joint press conference with Turkish President Gül after the signing of the strategic agreement, Nazarbayev said the strategic aspect of the partnership between Ankara and Astana has always been there. Noting that this is an important effort, a famous expert on Kazakhstan, Abdulvahab Kara, said in an interview with Sunday's Zaman that this is the first time Turkey has signed a strategic partnership agreement with any Turkic country. “I view this as a huge step. We may collect the fruits of such agreements in the future. It could have productive implications with regard to economic and cultural relations,” said Kara. In contrast, Hüseyin Bağcı, a professor of international relations at Middle East Technical University (ODTÜ), said it is not healthy to use the term strategic partnership every time. “The term has been widely used, and it has been watered down. It is impossible to have strategic relations with every country; we selectively use this term in international relations,” Bağcı said. “However,” he continued, “it is positive what has been done with Kazakhstan.” Mentioning Turkey's swift recognition of Kazakhstan's independence, Bağcı said the two countries have experienced ups and downs in bilateral relations. “Kazakhstan is a rich country with abundant natural resources and is a significant trade partner of Turkey,” Bağcı noted.

• Kazakhstan to promote OSCE common vision of security issues Almaty. October 26. Interfax-Kazakhstan - Kazakhstan plans to promote a common security vision in its chairmanship of the Organization for Security and Cooperation in Europe (OSCE) in 2010, Kazakh Deputy Defense Minister Lt. Gen. Bulat Sembinov told a Monday press briefing. The briefing was dedicated to a visit of foreign military observers to Kazakh military sites. "It is no secret that OSCE member countries have certain disagreements about security issues, so our chairmanship will target for the rapprochement of positions on many items of the organization's agenda. Such positions have been invariable for many years," he said. "The profound political changes of recent years show that there is no European or Asian security. Instability in a particular country or a region endangers the security for the whole of Eurasia, and security is the key


activity of the OSCE," he said. The Kazakh chairmanship "is bound to enhance the Asian agenda of the OSCE and to increase the organization's activity in the dialog between the West and the East," he said. "My country wishes to strengthen arms control, solve the problem of small firearms and the stock of conventional armaments. We have ensured over 50 inspections on the national territory within the framework of the Vienna document," he said. Forty-five military observers from 25 OSCE member states will visit an airbase and a paratrooper brigade stationed in the Almaty region in southeastern Kazakhstan on October 26-30 in the course of Kazakhstan's preparations for chairing the OSCE and in fulfillment of the Vienna document on confidence building measures and security adopted in 1999. Kazakh representatives took part in similar inspections in Austria, Norway, the Czech Republic and Germany this year. Economic /Energy Front

• Kazakhstan will be a part of the Nabucco Project: Turkish president Turkish President Abdullah Gul said Friday there were strong reasons for Turkey and Kazakhstan to work together, Anadolu Agency reported. Speaking at the Turkish-Kazakh Business and Investment Forum in Istanbul, Gul said that he invited the businessmen of the two countries to cooperate more. We have signed a strategic cooperation agreement with Kazakhstan yesterday (Thursday). Prior to this agreement, we acted together as strategic partners, Gul said. We are two brotherly countries. We are two separate parts of the same nation. The home of our forefathers is Kazakhstan. We have never forgotten the lands of our forefathers. I witnessed great hospitality during my two separate visits to Kazakhstan, Gul indicated. It is a reality that Kazakhstan has become the shining star of Asia. Kazakhstan has succeeded in establishing national unity, Gul said. When I look at the participants of the Turkish-Kazakh Business and Investment Forum, I see representatives of Turkish companies who have well succeeded abroad. Our businessmen would like to work with their Kazakh counterparts in Turkey, Kazakhstan and third countries, Gul stressed. Kazakhstan expressed an interest to be a part of the Nabucco Project while relevant countries signed an agreement. Kazakhstan will be a part of the Nabucco Project. Kazakh natural gas will be transferred to Europe, Gul said. It is our wish to cooperate more with our Kazakh brothers. There are strong reasons for Turkey and Kazakhstan to work together. We invite the businessmen of our respective countries to work more together and make use of the potential, Gul also said.

• Samsun-Ceyhan Pipeline Project Designed to Divert Kazakhstani Oil Russia and Turkey, with Italy in tow, have seemingly struck a grand oil and gas bargain in the Black Sea. On October 19 in Milan, government ministers and corporate officials from the three countries signed agreements to move ahead with the Russian South Stream gas pipeline on the seabed and, concurrently, a Novorossiysk-Samsun-Ceyhan oil transport system centered on a pipeline across Anatolia. Italy’s state-controlled energy conglomerate ENI is involved in both projects, thanks to its close relations and those of Prime Minister Silvio Berlusconi with Moscow. The agreements just signed, however, amount to a bilateral quid-pro-quo between Russia and Turkey (Interfax, Anatolia News Agency, October 19, 20). The Turkish government authorized Russia’s Gazprom to conduct exploration work on the seabed in Turkey’s Black Sea exclusive economic zone, in preparation (or so it seems) for laying the South Stream pipeline’s seabed section. In return, Russia agreed to supply oil into the Samsun-Ceyhan pipeline, to run through Turkish territory from the Black Sea to the Mediterranean. This line, with a proposed


capacity of the same magnitude as the Baku (Azerbaijan)-Ceyhan pipeline, would mainly carry Kazakhstani oil, to be delivered by Russia through the port of Novorossyisk into the Black Sea. This quid-pro-quo was first outlined publicly during Russian Prime Minister Vladimir Putin’s August 6 visit in Ankara (EDM, August 7, 8, 9). It does not entail any promise of South Stream gas supplies to Turkey. This would be unnecessary, since Russia already covers three quarters of Turkey’s gas consumption, in a saturated market. Turkey’s reward is the Samsun-Ceyhan oil transport project in return for cooperating with South Stream. Russia’s gain is two-fold. In a virtual sense it maintains an appearance of movement on the South Stream project, despite the lack of gas supplies and financing for that project even at the declarative level. Russia is trying to generate an artificial bandwagon effect with South Stream in order to cast doubt on the viability of the European Union-backed Nabucco project. In a material sense, however, Russia stands to gain major advantages in the contest for the transportation of Caspian oil, if the Samsun-Ceyhan pipeline is built and operates as intended. This line would enable Russia to consolidate its control over the transportation of Kazakhstani oil to international markets via Russian territory, adding to Moscow’s already strong leverage on Kazakhstan and on Western oil companies operating there. Nearly 80 percent of oil exports from Kazakhstan flow through Russian pipelines and ports at present (a share basically unchanged for the last decade). Western companies extract most of that oil and have also built the largest export pipeline: the Caspian Pipeline Consortium (CPC) line from Tengiz via Russia to Novorossiysk. Oil production in Kazakhstan is set to increase dramatically in the decade ahead, as currently operating fields approach the peak phase and the world-class Kashagan offshore field comes on stream. That production requires outlets and Moscow insists that these are, again, Russian outlets, primarily Novorossiysk on the Black Sea.

• Kazakhstan prepares for return of good old commercial banking Now that Kazakhstan’s economy is starting to revive, the country’s major banks are preparing for a resumption of growth in the sector - but a period of more cautious and conservative growth. The rising oil price has given rise to a new mood of optimism in Kazakhstan. In the latest forecast from the government (which admittedly tends to err on the side of optimism), Prime Minister Karim Massimov said on October 19 that the economy would return to 2.4% growth in the 2010 financial year, based on oil prices of just $50 per barrel (today, prices are bouncing around $70). Bankers, too, say they are starting to see the light at the end of the tunnel. Serik Akhanov, chairman of the Association of Financiers of Kazakhstan (AFK), cites recent increases in assets, liabilities and retail deposits. On a less positive note, non-performing loans (NPLs) have continued to increase, rising from 33.8% to 34.7% of all loans during September, although the high percentage of bad loans at BTA Bank and Alliance Bank skew the data. Timur Ishmuratov, managing director of Bank CenterCredit’s international department, agrees that we have started to see some kind of recovery, including an improvement in NPL levels at some of the banks and an increase in the recovery of previously written-off loans. However, he warns that there are still several factors that could cause a setback. “The best-case scenario is that the sector will hit bottom by the end of this year and there will be some improvements in 2010,” he says. “It’s possible that the current situation could continue through 2010, but we believe that the optimistic scenario is more realistic.”


Most of the major banks introduced stricter lending criteria as the crisis hit, if they had not already done so. Now, some face the problem of having funds to lend, but no suitable loan candidates. “To maintain the quality of our loan portfolio at a reasonable level, the bank has toughened requirements for borrowers and implementation of risk management. In addition, we have increased our liquid assets as a cushion against potential volatilities,” says Zareena Taimagambetova, executive director of Eurasian Bank. “There are also very few good corporate projects in Kazakhstan, and faced with this lack, most banks have a high level of liquidity.” ATF Bank plans to increase its lending activity, but the bank’s CEO, Alexander Picker, has a different take on the situation. “The main obstacle to increasing lending is not that there are no suitable companies, but that there needs to be a general change in the relationship between banks and borrowers,” he says. “Previously, banks acted like pawn shops, in that when deciding to whether to make a loan they focused on the collateral rather than the company’s repayment capacity. The problem is that most of the collateral was real estate, and prices have gone down.” Although Kazakhstan didn’t have a banking bubble on the scale of those in western financial hubs, there were widespread breaches of classical commercial banking rules, in particular those about not making loan decisions purely on collateral and not making speculative transactions. The AFN has already introduced new regulations for commercial banks, intended to prevent a repeat of the current crisis. Meanwhile, a high-level concept for post-crisis development of the banking sector is being drawn up. This is expected to be signed by President Nursultan Nazarbayev by the end of 2009. With BTA and Alliance out of the picture, other major banks are looking to increase their market share in the new competitive landscape. Halyk Bank’s chairwoman, Umut Shayakhmetova, tells bne in a recent interview that the bank views 2009 as a year of opportunity. ATF and BCC, both of which have strong foreign investors, have benefited from recent developments, while Eurasian leaped from 7th to 10th place among Kazakh banks in terms of assets in the first half of this year. But while the larger banks may be looking to increase their share of the market, they also expect to play a more modest role in the development of the economy as a whole. No one expects a return to the explosive, debt-fueled growth of the pre-crisis years. “The crisis has been a cold shower for banks. I am sure they have learned many lessons,” Akhanov tells bne. “Before the crisis, banks had asset growth of up to 70% a year, while GDP was growing by just 10% on average. Now they have learned first that the correlation of GDP growth to banking sector growth is important. Second, risk assessment needs to be improved. And third, economies are cyclical - bankers had forgotten that growth cannot be constant.” ATF’s Picker agrees: “Banks used to be the driver for the economy. If they can’t return to that function in future, I don’t know that it would be a bad thing.” “Banks should have an important role in any economy, providing loans and support for the real economy, but they should have a more humble role,” he says. “It’s time for a return to good old commercial banking.”

• Kazakhstan may supply gas for Nabucco – energy ministry Astana. October 28. Interfax-Kazakhstan – Kazakhstan may supply gas for Nabucco project if there are available gas volumes, said Meiram Kanapyanov, the director of the multilateral cooperation department of the Kazakh Ministry of Energy and Mineral Resources.“As far as Kazakh gas deliveries for the Nabucco project is concerned,


everything will depend on gas availability as a lot of large gas projects, that are being implemented now, require considerable gas volumes,” he told an international press conference entitled “Kazakhstan’s Chairmanship in OSCE: Challenges and Possibilities” in Astana on Wednesday. “We also have to build a gas pipeline through the Caspian Sea, the legal status of which has not been defined yet. So, Kazakhstan won’t be able to deliver gas for the Nabucco system unless these projects (TransCaspian gas pipeline – Interfax-Kazakhstan) have been completed,” he said. In the future, he added, when other large fields come into operation and there are available gas resources Kazakhstan may be considered as potential gas supplier for Nabucco. Turkey, Bulgaria, Rumania, Hungary and Austria made a decision to build a gas pipeline, known as Nabucco project, to transport gas from the Caspian region round Russia directly to Europe. It is expected that the construction of the pipeline will be finished by 2014. The project for the construction of this 3300 km gas pipeline is valued at 7.9 billion euro. Social Front

• Kazakh Rights Activist Sent To Remote Labor Camp Leading Kazakh human rights activist Yevgeny Zhovtis has been transferred from Almaty to a labor camp in northeastern Kazakhstan, RFE/RL's Kazakh Service reports. Zhovtis, director of the nongovermental organization Bureau of Human Rights, was sentenced to four years in prison last month for accidentally striking and killing a man with his car. On October 19, an Almaty Oblast appeals court in the city of Taldy-Qorghan upheld his conviction and sentence, which has been condemned by international human rights groups as too long for his alleged crime. The labor camp OV-156/13, where Zhovtis was transferred, is located about 1,000 miles from his native Almaty. His supporters say the fact that Zhovtis was transferred so far away from his family and colleagues to serve his term confirms their belief that the case against him is politically motivated.

• U.S. Says Concerned With Kazakh Activist Verdict ALMATY (Reuters) -- The United States has criticized a tough sentence for a Kazakh human rights activist handed down months ahead of Kazakhstan's chairmanship of a European human rights body. A Kazakh court this week upheld a four-year prison sentence for human rights campaigner and government critic Yevgeny Zhovtis who was jailed for manslaughter after a road traffic accident in a trial rights groups say was flawed. Kazakhstan's human rights record has come under scrutiny as the former Soviet republic prepares to chair the Organization for Security and Cooperation in Europe (OSCE) next year. Zhovtis hit a pedestrian on a highway in July causing his death. Zhovtis said he had not been able to prevent the accident and called the verdict politically motivated. Rights groups say his brief trial was unfair and did not allow him to mount a proper defense. Zhovtis was not allowed to attend the appeal. On October 22, the U.S. Embassy in Kazakhstan noted "with concern" the appeals trial ruling. "After the original trial in September, there were credible allegations of procedural flaws in that trial, and the appeal hearing failed to address those concerns," a statement said. "We urge the government of Kazakhstan to pursue the upcoming procedural review of the case fully in accord with Kazakhstani law and its commitment to international judicial standards." Western rights groups such as Human Rights Watch have said Zhovtis's case undermined Kazakhstan's credibility as the future leader of the OSCE, Europe's main


security and human rights body. The government has denied any political motivation behind the case and said the trial had taken place in line with the law.

• Kazakhstan’s journalism goes through crisis, survey Almaty. October 29. Interfax-Kazakhstan - The international center of journalism, MediaNet, after surveying 350 reporters, editors-in-chiefs and media owners concluded that the development of Kazakhstan’s journalism has frozen. "Over 50% journalists believe that the Kazakh media is stagnating,” MediaNet director Vyacheslav Abramov said at a press conference on Thursday at the Interfax-Kazakhstan press center in Almaty on Thursday. "Nearly 20% respondents are witnessing that the media is regressing. Only 10% observe some progress,” he said. The majority of surveyed responders named a global economic crisis that holds back new media projects as the key reason behind stagnation of the media market. He also said that "many reporters and editors of periodical publications noted an increasing pressure on the media by the state agencies in an attempt to take control over the media outlets.” According to MediaNet director, “over 70% of the surveyed media representatives believe that Kazakh media outlets are not free, 20% said that media outlets are relatively free.” Despite the above-mentioned hurdles the Kazakh mass media still has its influence on the public opinion, but practically leaves the state officials unaffected. "In other words, people that make decisions don’t pay attention to media reports. They respond to a harsh criticism only, and do it in a very aggressive manner,” Abramov said. The survey showed that getting access to information is a major concern for journalists. “It’s hard to get any information or reach someone for comments. It’s fair for both state officials and businessmen alike, as they are all interested in presenting themselves in a favorable light,” he said. The survey demonstrated that Russian and Kazakhs journalists have recently warmed to each other, he said. Abramov said that the initial goal of the survey was to identify the real owners of the media outlets in Kazakhstan. “This information is still officially a mystery, but journalists all know -- who is behind what,” he said, but added that such information is still officially unavailable.

• Kazakh language development must not be discriminating against residents, Nazarbayev

Astana. October 27. Interfax-Kazakhstan – Kazakh President Nursultan Nazarbayev believes that the development of the state Kazakh language must be carried without infringing upon residents’ rights."The Assembly of Peoples of Kazakhstan must take the lead in promoting the Kazakh language learning, but on new terms. It means a more extensive coverage of the population with the language learning process by expanding a network of language centers in every city, regional centers and education establishments,” the resident said. “We need to be consistent in realizing a series of steps without discriminating or disparaging anyone," the president said at the 15th session of the Assembly of Peoples of Kazakhstan (APK) on Monday in Astana. “Innovative learning methods must be more vigorously introduced, the share of TV broadcasting in Kazakh must be increased but with subtitles, more Kazakh translation of business guides, fiction and other literature must be published and Kazakh language internet sites must be increased," the head of state said. The president stressed that the government allocates sufficient funds, but they must be properly managed. The Assembly of Peoples of Kazakhstan is a consulting and advisory agency at the head of nation that embraces representatives of almost all 120 ethnic groups that reside in Kazakhstan.


President Nazarbayev came up with the Assembly creation in 1992. He chairs the Assembly. Resolutions supported by APK has no legal force, but in many cases they create precedents for adopting important regulations and documents having the force of law. Kyrgyzstan Political Front

• Kyrgyz Police Seeking Second Suspect In Journalist's Killing Kyrgyzstan's Interior Ministry says that a second suspect is being sought in the 2007 murder of independent journalist Alisher Saipov, RFE/RL's Kyrgyz Service reports. Interior Ministry spokesman Oljobay Kazybaev told RFE/RL that Abdufarit Rasulov was detained shortly after the killing, and the search for another suspect -- identified only as Sharakhmatullaev -- was recently launched as the investigation continues. Last week, the New-York based Committee to Protect Journalists (CPJ) called on Kyrgyz authorities to make public the findings of their investigation into Saipov's murder. Saipov, 26, was the editor of the local Uzbek-language newspaper "Siyosat" (Politics) and had previously reported for RFE/RL and Voice of America. He was shot dead by an unknown assailant on October 24, 2007, as he left his office in the southern Kyrgyz city of Osh. Saipov's colleagues suspect he may have been killed by agents of neighboring Uzbekistan since he often wrote critical articles in Uzbek about the situation in that country. Kazybaev told RFE/RL last week that the "opinions" about the alleged involvement of Kyrgyz or Uzbek security services into the murder are wrong because the main suspect in Saipov's killing, Rasulov, has been arrested and his case will begin soon. But Rasulov's lawyer, Zina Alymbekova, told RFE/RL that her client never met Saipov and has nothing to do with the crime. She said he only confessed to being involved in the killing under duress and torture during the investigation.

• President’s institute formed in Kyrgyzstan The President of Kyrgyzstan has signed a decree on establishment of government bodies, forming the president’s institute. The following government bodies have been established to “create condition for formation of national and state ideology, rational balance between innovations and traditions, state government bodies and interests of groups, conduction of dialogue and securing of partnership between the state authority and civil society:” -Presidential apparatus, - Presidential secretariat, -Central Development, Investments and Innovations Agency. The decree has formed the following coordinating and consultative bodies, included in the president’s institute: -Presidential council -Development council. The document appoints officials of the institute - the State Defense, Security and Law Order Advisor to the president, the Foreign Minister of Kyrgyz Republic. The Presidential Secretariat, Apparatus, the Central Development, Investments and Innovations Agency are established on the basis of presidential administration. The State Defense, Security and Law Order Advisor to the President and his office are formed on the basis of the Kyrgyz Security Council. Strategic Analysis and Estimation Institute under the Kyrgyz president is functionally subordinated to the presidential secretariat.


The document details posts, structures and maximum number of state officials of the mentioned bodies.

• New Foreign Minister appointed Kadyrbek Sarbaev was again appointed a Kyrgyz Minister of Foreign Affairs as the President Bakiev signed a relevant decree in Bishkek on Monday. With another decree Bakiev named Oxana Malevanaya and Kanybek Joroev as heads of the Presidential Secretariat and Staff respectively

• Opposition criticizes presidential reforms Kyrgyz opposition has spread an official statement, harshly criticizing the just-started governmental reforms pushed by the president Bakiev. “Despite the large-scale propaganda the reform is just a cover for consolidation of power in the president’s hands. The cabinet has lost its key ministries, which significantly weakens the government and tightens the president's grip on power,” the statement released by the Joint People’s Movement (JPM). It has to be noted that opposition in Kyrgyzstan repeatedly criticized the oversized cabinet in such a ‘small Kyrgyzstan’ and claimed that the president should not deal with politics. In its latest statement JPM complains that now such issues as culture, tourism, and environment are out of the government’s responsibility. The ministry of economic development and trade was degraded to the ministry of economic regulation, which is a substantial setback. On the contrary, the irrelevant State Property Fund became a ministry. The Prime Minister status became purely technical. The opposition believes that the long-awaited reform is nothing but a change of door signs in the officials’ offices. Geo Strategic Front

• Hizb ut-Tahrir activists nabbed in Osh Three Hizb ut-Tahrir activists have been nabbed in Osh (Kyrgyzstan), press service of the Interior Ministry of Kyrgyzstan reported. Officers of the Osh Internal Department have arrested 62, 29 and 27-year-old citizens with CDs, video cassettes, booklets, notebooks, posters, newspapers and invitations to religious events of the extremist organization. The detained individuals have been previously brought to trial for fueling of religious conflict. Investigation is ongoing Economic /Energy Front

• Kyrgyzstan To Pay Gas Debt To Uzbekistan BISHKEK -- Kyrgyzstan plans to pay its debt for Uzbek natural gas by December 1, RFE/RL's Kyrgyz Service reports. Deputy Prime Minister Akylbek Japarov told RFE/RL that the gas debt will be discussed by the Kyrgyz parliament on October 30. Kyrgyzstan's unpaid debt for Uzbek gas amounts to some $14 million. Uzbekistan suspended the flow of gas to the southern part of Kyrgyzstan on September 22, including to the regional capitals of Osh, Jalalabad, and Batken. In October, the Kyrgyz government paid some $5 million of the debt. Kyrgyzstan currently buys Uzbek gas for $240 per 1,000 cubic meters, up from $145/1,000 cubic meters that Kyrgyzstan paid the previous year. Uzbekistan provides energy resources to Kyrgyzstan, while the Uzbeks are dependent on Kyrgyz water supplies. Uzbekistan has on several occasions in previous years stopped exporting energy to Kyrgyzstan, souring relations. Ties between the two have worsened over Kyrgyz plans to build hydroelectric power plants that might reduce the amount of water Uzbekistan would receive from Kyrgyzstan. Russia's state-controlled Gazprom owns 75 percent of KyrgyzGaz.


• State-owned privatization to get through stock exchange in Kyrgyzstan Privatization of state-owned stakes will get through the Kyrgyzstan stock exchange for the first time in years, one of the Bishkek finance companies said. The Kyrgyz Stock Exchange officially informed about the auction sale of three companies’ state-owned stakes to run on October 30, 2009. The Bulgary Company has put up 703 or 0.18 percent of its shares for sale, with a starting price of 46.23 soms per share. Thereto, the whole holding will be sold no less than for 32,500 thousand soms. The Orgtechstroy Company plans to trde 2.56 percent of the total amount of shares. At least 21.30 thousand securities will be sold for no less than 999.4 thousand soms, i.e. 47.52 soms each. The BASO Company will be the third enterprise to privatize its state-owned stake through the stock exchange. The number of listed for sale shares comes to 163 that is 0.37 percent of the total amount. The starting price of one share is 369.84 soms, while the minimum price for the whole holding amounts to 60,284 thousand soms.

• Kazakhstan to step out of Central Asian energy system Kazakhstan intends to step out of the Central Asian energy system, the Kazakh media reported. According to the Kazakhstan Electricity Grid Operating Company (KEGOC), Kazakh energy system is able to provide the internal suppliers and support Kyrgyzstan. “Energy is constantly taken out of the Common CA energy system, namely by Tajikistan. Imbalance of energy production and consumption may overburden the transit line of the North-South. This, in turn, may lead to electricity rationing and possible cascade failure of the system, affecting both Kazakhstan and Russia,” KEGOC said. Social Front

• At least 88% of Kyrgyz internal migrants move in search for jobs About 88% internal migrants of Kyrgyzstan move in search for jobs, the American University in Central Asia’s survey said. The survey shows that up to 95 percent of internal migrants in Kyrgyzstan work without contacts, over 40 percent suffer from negative attitude of medics and about 20 percent have to refuse any medical aid due to negative attitude of doctors. Therewith 40 percent of the survey participants admit that they have given bribes for receiving medical assistance and about 55 percent struggle to put children to schools, due to lack of official registration.

• Child social security system is disintegrated in Kyrgyzstan Analytical study Evaluation of Child Protection System, held by an international expert Irina Malanchuk, with assistance of UNICEF in Kyrgyzstan says that child social security system in our country is disintegrated. The system is controlled by several central and local governmental structures and it literally tears the system apart. “Besides, the new structures with unclear functions have been recently established in the sphere,” the report said. Two parallel systems function in the country - the Child Protection Department without potential at places (in regions, districts and rural areas) and all previously existed central structures (ministries) with services at the local level. Tajikistan Political Front



DUSHANBE, October 26, 2009, Asia-Plus -- President Emomali Rahmon who is also leader of ruling People’s Democratic Party (PDPT) has promised to take efforts to ensure holding of the upcoming parliamentary elections at the high level and within the framework of law. A plenum of the PDPT Central Committee, presided over by President Rahmon, was held in Dushanbe last Saturday (October 24). Usmon Soleh, the head of the PDPT propagation and information department, told Asia-Plus today that the meeting considered issues related to preparations for the upcoming parliamentary elections due in February 2010 and holding of the 10th congress of the party. On the upcoming parliamentary elections, Emomali Rahmon noted that as the head of state he would ensure holding of transparent and free elections. The elections should be held at the high level and within the framework of law, he stressed. Rahmon called on all political parties and movements participating in the elections to act within the framework of law, Soleh said. The plenum also adopted decision on convocation of the 10th congress of PDPT in Dushanbe on December 28 this year. The People's Democratic Party of Tajikistan was founded in 1993 and registered the same year. It is the biggest political party in Tajikistan, boasting some 120,000 registered members. The party chairman is President Emomali Rahmon. PDPT now controls more than 70 percent of the seats in parliament. Geo Strategic Front

• Tajik President's Moscow Talks Inconclusive MOSCOW -- Tajik President Emomali Rahmon's talks with Russian counterpart Dmitry Medvedev near Moscow have produced no significant results, RFE/RL's Tajik Service reports. Medvedev told journalists after the closed-door talks that Russia and Tajikistan would develop cooperation in defense and military exports to third countries to improve national and regional security. Medvedev and Rahmon confirmed their interest in hydropower projects in Tajikistan while taking other Central Asian countries' interests into account. Tajik analysts tell RFE/RL that Russia was not ready to discuss the main issues concerning Dushanbe: the rent for a Russian military base in Tajikistan and Russian participation in the Roghun Hydroelectric Plant project. Experts in Tajikistan say Russia's involvement in construction of Roghun would likely irritate neighboring Uzbekistan, which considers the new plant a threat to its regional monopoly on water.

• President Rahmon holds a number of meetings in Moscow DUSHANBE, October 24, 2009, Asia-Plus -- President Emomali Rahmon’s state visit to Russia concluded and he returned to Dushanbe Friday evening, according to presidential press service. On October 21, President Rahmon and his Russian counterpart, President Dmitry Medvedev, had an informal meeting at the Moscow regional presidential residence Barvikha. On October 22, the presidents held talks in the Kremlin. A welcome ceremony of the Tajik president at the St. George Hall at the Grand Kremlin Palace envisaged under the format of Rahmon’s state visit in Moscow preceded the negotiations of the presidents. After the ceremony the presidents had an eye-to-eye meeting and then the negotiations continued involving the delegations of the countries. Speaking at a news conference after the talks in the Kremlin, Dmitry Medvedev called bilateral ties "friendly" and "those of allies." "We have analyzed the results of the development of our relations recently, and discussed economic projects, military cooperation, and humanitarian projects," he said. Medvedev also pledged measures to facilitate migration rules for hundreds of thousands of Tajiks working in Russia. The presidents issued a joint statement after the talks pledging to step up military cooperation, highlighting the


Russian base's role for security in the region, and ordering agencies in the two countries to accelerate natural gas prospecting in Tajikistan. Presidential press service reported that on October 23, President Rahmon met with staff teaching and students at M.V Lomonosov Moscow State University. The same day, Emomali Rahmon met with 300 fellow-countrymen living and working in the Russian Federation. The meeting participants exchanged views on ways of solving problem facing Tajik labor migrants in the Russian Federation. It was already the fifth meeting of President Rahmon with Tajiks staying in Russia, the press service said. During his previous visits to Russia, Tajik leader had held similar meetings in Kazan, Moscow, Chelyabinsk and Yekaterinburg.

• Tajikistan will not get money from Russia for military base until 2014 DUSHANBE, October 26, 2009, Asia-Plus -- Under an agreement signed between Tajikistan and Russia in October 2004, Russian military base 201 in Tajikistan will work here on an unpaid basis until 2014, Tajik Foreign Minister Hamrokhon Zarifi told reporters in Dushanbe today. “During an official visit of Russian President Dmitry Medvedev to Tajikistan in August 2008, the Russian side offered us to discuss a number of organizational issues regarding further presence of its military base on our territory,” said Zarifi, “In October 2008 at our request, Russia presented its proposals on this issue in a written form and we sent our reply to Moscow in January this year.”According to him, the presidents of the two countries have charged relevant ministries of their countries to study the issue. “A working group comprising representatives from Tajik MFA and the defense ministries of the two countries has been set up for studying the issue and presenting the necessary option. This group consists of four subgroups,” said the minister, “During recent state visit of President Rahmon to Moscow, Russian President Dmitry Medvedev orders Russian foreign minister to join this process.” He noted that during the negotiations the sides had taken into consideration national interests of each other. “The working group has considered the issue of payment for Russia’s military base 201 along with the issue on unpaid presence of it and I think the negotiations may last until 2014,” Zarifi said. He added that additions to the agreement proposed by the Russian side were aimed at improvement of conditions of Russian military personnel staying in Tajikistan. We will recall that Russian Defense Minister Anatoly Serdyukov told reporters in Moscow on October 22 that the issue of paying rent for a Russian military base in Tajikistan was still being discussed. "We have considered two issues - either to continue using the base in the current form or on a paying basis," Anatoly Serdyukov told reporters after talks between the countries' presidents, adding that it was too early to discuss specific figures, according to RIA Novosti.

• U.S. CENTCOM commander visits Tajikistan DUSHANBE, October 27, 2009, Asia-Plus -- Yesterday afternoon, General David H. Petraeus, Commander, U.S. Central Command (CENTCOM), met with President Emomali Rahmon and a number of Tajik military officials during his October 26 visit to Tajikistan. According to presidential press service, in the course of the talks, President Rahmon noted that Tajikistan was interested in establishment of lasting peace in Afghanistan and ready to expand its cooperation with the United States in that and other directions. For his part, General Petraeus highly appraised Tajikistan’s role in providing stability in Central Asia and appreciated Tajikistan’s support for international antiterrorist forces in Afghanistan and reconstruction of Afghanistan’s economy. U.S. general also expressed satisfaction with the level of cooperation between the U.S. specialists and


Tajikistan’s border troops, customs officers and other services, the press service said. Speaking to reporters following the meeting, General Petraeus stated that along with issues of bilateral cooperation between Tajikistan and the United States, he discussed joint cooperation in promoting stability in Afghanistan, including combating drug trafficking, preventing terrorism, ensuring border security with Tajikistan and supporting humanitarian and infrastructure projects in Afghanistan, according to the U.S. Embassy in Dushanbe. General Petraeus also discussed transporting U.S. commercial goods via Tajikistan to support rehabilitation efforts in Afghanistan. General David H. Petraeus assumed command of the United States Central Command in October 2008, after serving for over 19 months as the Commanding General, Multi-National Force-Iraq. Prior to his tour as MNF-I Commander, he commanded the U.S. Army Combined Arms Center and Fort Leavenworth. Before that assignment, he was the first commander of the Multi-National Security Transition Command-Iraq, which he led from June 2004 to September 2005, and the NATO Training Mission-Iraq, which he commanded from October 2004 to September 2005. Economic /Energy Front

• Russia to build three small power plants in Tajikistan DUSHANBE, October 26, 2009, Asia-Plus – Russia plans to build three small hydropower plants in Tajikistan and hopes to obtain a controlling stake in the project, the Russian energy minister said Sunday (October 25), RIA Novosti reported. Sergey Shmatko told journalists: "We count on a controlling stake in these plants and hope for the Tajik side's understanding," adding that Russia will account for most part of the investment into the project. We will recall that Tajik President Emomali Rahmon and his Russian counterpart, President Dmitry Medvedev, met on October 22 during President Rahmon's visit to Moscow and pledged, among other things, to settle differences on energy projects. Shmatko earlier said the two countries have overcome differences on a $30 million debt for electricity supplied to Tajikistan by the Sangtuda-1 hydropower plant, and are set to sign documents on the repayment schedule.

• Iranian energy official gets acquainted with implementation of Iran-supported projects in Tajikistan

DUSHANBE, October 26, 2009, Asia-Plus -- Iran’s Deputy Minister of Energy, Hamid Chitchian, heading an Iranian delegation, paid a two-day visit to Tajikistan on October 22-23. According to the Iranian Embassy in Dushanbe, the purpose of the visit was for to hold discussions with a number of Tajik officials and get acquainted with the process of implementation of the Iran-sponsored projects in Tajikistan. On Friday October 23, Chitchian met with Sharif Rahimzoda, Chairman of the National bank of Tajikistan (NBT), and Safarali Najmididnov, Minister of Finance of Tajikistan. The process of implementation of the project for construction of the Sangtuda-2 hydroelectric power plant (HPP) in Tajikistan was a major topic of talks of Najmiddinov and Chitchian. The Sangtuda-2 HPP has been constructed by the Iranian company, Sangab. The project is expected to solve many problems of Tajikistan in generating electricity and providing power in cold seasons. According to Iran’s news agency IRNA, Mr. Najmiddinov said that Tajikistan attaches significance to the project, which is planned to be inaugurated in two years' time. During his stay in Tajikistan, Iranian official also visited the site for construction of the Sangtuda-2 HPP and the Istiqlol


Tunnel that has also been built with help of Iranian specialists, the source at the Iranian Embassy said.

• Tajikistan, Poland to sign economic cooperation agreement DUSHANBE, October 30, 2009, Asia-Plus -- Tajik-Polish political and economic consultations will begin in Tajikistan next week, Slavomir Stsalkowski, the Counselor of Polish Embassy in Tajikistan, told reporters in Dushanbe yesterday. According to him, Polish deputy foreign minister heading a dignified delegation, which includes representatives of ten large companies of Poland, will arrive in Tajikistan. “A meeting of representatives from Polish and Tajik business communities will be held in Dushanbe on November 3 on sidelines of the consultations,” said Polish diplomat, “On November 4, Polish entrepreneurs will visit some regions of Tajikistan to get acquainted with work of their Tajik colleagues, study their needs and define how they could establish cooperation.” Stsalkowski noted that a government-to-government agreement on economic cooperation between the two countries would be singed in Dushanbe. “It is the first step and a clear signal for Polish entrepreneurs that the governments support economic and trade relations between our countries,” he said. Polish diplomat added that a Polish-Tajik intergovernmental commission would be established under the mentioned agreement. “Working groups will be set up within the commission,” said he, “I know that working groups for agriculture and mechanical engineering affairs will be set up. These groups will consider not only general issues, they will also consider issues related to attracting concrete firms and entrepreneurs.”On the trade and economic relations between Poland and Tajikistan, Stsalkowski noted that last year, a trade between the two countries valued at only 26.3 million U.S. dollars, which was 12.7 percent fewer than in 2007. Over the first nine months of this year, the Polish-Tajik trade has decreased even more. Only four enterprises with participation of Polish capital now operate in Tajikistan; one of them, is Polish construction company, Budmex, which opened its representative office here this year, Polish diplomat said.“One of the main reasons for this situation is shortage of information about opportunities and needs of the two countries” Stsalkowski said, noting that the Polish Embassy is working on attracting Polish entrepreneurs for working in Tajikistan. “Tajikistan Market Guide” has been published in the Polish language for our businesspeople wanting to work in Tajikistan,” he added. As it had been reported earlier, Polish Deputy Foreign Minister Andrzej Kremer will pay a visit to Tajikistan in early November this year. During his stay in Tajikistan, the Polish deputy foreign minister will hold talks with senior representatives of the Tajik MFA and attend the Tajik-Polish business forum. Social Front

• EU-UNDP Project helps to reduce drug addiction in prisons DUSHANBE, October 30, 2009, Asia-Plus – Today, the EU-UNDP Central Asia Drug Action Programme (CADAP) handed over computers, office and household equipment, and sport inventory to the “SPIN Plus” organization for further use at the “Half-Way House” for drug addicts at the Prison Central Hospital located in Dushanbe, according to the Delegation of the European Commission in Tajikistan. The total cost of the equipment is about € 16 000. Under its "Prisons" project, CADAP helps introduce the rehabilitation and counseling program "Atlantis" in the five Central Asian countries by featuring a 12-step therapy program on the treatment and rehabilitation of drug-addicts in prisons. The project also provides continuing support for


prisoners by the creation of “Half-Way Houses” after their release from prison. “Half-Way Houses” provide assistance (temporary housing, renewals of documents, vocational training etc) for ex-prisoners to adjust to life after their release from prison. In all Central Asian countries non-governmental organizations were contracted to provide renovation/reconstruction works and install equipment in prisons for providing social support. In Tajikistan, this job was performed by the NGO “SPIN Plus”. The overall objective of the EU-UNDP CADAP Programme is the gradual adoption of EU and international good practices on drug policy covering both supply and demand reduction aspects by beneficiary authorities. CADAP is funded by the European Union and implemented by UNDP.

• WEF’s Global Gender Gap Report 2009 ranks Tajikistan 87th out of 134 economies

DUSHANBE, October 28, 2009, Asia-Plus -- The World Economic Forum’s (WEF) Global Gender Gap Report 2009 ranks Tajikistan 87th out of 134 economies. According to the report, Tajikistan gains two places in the rankings improving its scores on the labor force participation subindex. There is also a smaller perceived wage gap for similar work, according to the Executive Opinion Survey. The four Nordic countries that have consistently held the highest positions in previous editions of the Global Gender Gap Index continue to flourish, but the top rankings have been reallocated. Iceland (1) has claimed the top spot from Norway (3) which slipped to 3rd position behind Finland (2). Kyrgyzstan is ranked 41st, occupying the highest rank among Central Asia’s states, followed by Kazakhstan (47) Uzbekistan (58). Russia (51) loses 9 places in the rankings as compared to 2008 due to decreasing labor force participation of women and a perceived widening of the wage gap, although the overall ranking of the Russian Federation on the economic participation and opportunity category remains relatively strong at 24th position. However, in terms of political empowerment, the Russian Federation is far below average, holding the 99th position in the rankings for this subindex. The Global Gender Gap Report was first published in 2005. The 2009 report covers 134 major and emerging economies. The Report’s Gender Gap Index ranks economies according to their gender gaps and their scores can be interpreted as the percentage of the gap between women and men that has been closed. The three highest ranking countries have closed a little over 80% of their gender gaps, while the lowest ranking country has closed only a little over 45% of its gender gap. It assesses countries on how well they are dividing their resources and opportunities among their male and female populations, regardless of the overall levels of these resources and opportunities. By providing a comprehensible framework for assessing and comparing global gender gaps and by revealing those countries that are role models in dividing these resources equitably between women and men, the Report serves as a catalyst for greater awareness as well as greater exchange between policymakers. The Report examines four critical areas of inequality between men and women in 130 economies around the globe, over 92% of the world’s population: 1) economic participation and opportunity – outcomes on salaries, participation levels and access to high-skilled employment; 2) educational attainment – outcomes on access to basic and higher level education; 3) political empowerment – outcomes on representation in decision-making structures; and 4) health and survival – outcomes on life expectancy and sex ratio.


• A number of events dedicated to Unite Nations Day held in Dushanbe today DUSHANBE, October 24, 2009, Asia-Plus -- A number of events dedicated to the United Nations Day are being held in Dushanbe today. According the UNDP CO in Tajikistan, a concert of classical music, conducted by the Italian director Gerardo Collela is being held at the Opera and Ballet Theatre in Dushanbe today afternoon. An exhibition of activities of the UN agencies in Tajikistan has also been organized at the theatre. The United Nations Charter entered into force on October 24, 1945, after being ratified by the five permanent members of the Security Council – the republic of China (later replaced by the People’s republic of China), France, the Soviet Union (later replaced by the Russian Federation), the United Kingdom, and the United States – and a majority of the other signatories. The UN Charter is the treaty that forms the United Nations. It was signed at the Herbst Theatre of the San Francisco War Memorial and Performing Arts Center (part of the Civic center) in San Francisco, the United States on June 26, 1945 by 50 of 51 original member countries (Poland, the other original member, which was not represented at the conference, signed it later). The UN News Center reports that in his message on the United Nations Day, the UN Secretary General Ban Ki-moon noted, “On this United Nations Day and every day throughout the year, the United Nations is at work — for the planet, for jobs, for “we the peoples”.He noted that the UN delivers more humanitarian aid than anyone — and to the toughest places. The UN vaccinates 40 per cent of the world’s children. It feeds more than 100 million people and is helping more than 30 million refugees, most of them women and children fleeing war and persecution. “We are deploying more peacekeepers than ever — more than 115,000. In the last year alone, we provided electoral assistance to almost 50 countries. And the entire UN system has mobilized to face global economic turmoil and the social unrest it threatens” According to him, people look to the United Nations to defeat poverty and hunger, to keep the peace, to expand education and stand up for human rights in every corner of the globe. “They look to us to stop the spread of deadly weapons and disease, and to protect people and families hit by disasters. In December, they will look to us to seal a comprehensive, equitable and ambitious deal on climate change that will protect us all and pave the way toward a greener, more sustainable economy.” The UN Secretary General stressed that this is a unique moment in world affairs. Multiple crises — food, fuel, financial, flu — are hitting at once. Climate change looms larger every day. Each illustrates a 21st-century truth: we share one planet, one home. As people, as nations, as a species, we sink or swim together. The United Nations is doing its utmost to respond — to address the big issues, to look at the big picture, he noted. “We are forging a new multilateralism that can deliver real results for all people, especially those most in need. But I am also painfully aware of the distance to go and the gap between commitment and action,” said ban Ki-moon, “On this UN Day, let us resolve to redouble our efforts on behalf of the vulnerable, the powerless, the defenseless. Let us stand more united than ever – united in purpose and united in action to make the world a safer, better place.” Turkmenistan Political Front Geo Strategic Front


• Diplomatic corps of Turkmenistan meets on Caspian Sea coast The enlarged meeting of the diplomatic corps of Turkmenistan tool place in the coastal town of Turkmenbashi on October 29. Heads of diplomatic missions and consulates of Turkmenistan abroad and representatives of the Humanitarian Association of World Turkmens participated in the meeting. The meeting discussed new approaches to structuring the country's foreign policy strategy, the priorities of which were put forward by President Gurbanguly Berdimuhamedov at the 64th session of the UN General Assembly, the Turkmenistan.ru correspondent reports from Ashgabat quoting the press service of the Foreign Ministry of Turkmenistan. The meeting stressed that the main objective of the foreign policy of Turkmenistan was providing assistance to the international community in maintaining and strengthening the global security system, preventing and neutralizing the threat of conflict, ensuring conditions for stable and sustainable development of nations and peoples, as well as broad and constructive international cooperation. The meeting noted that "Turkmen President Gurbanguly Berdimuhamedov's statement is a programmatic document for the whole nation, and that Turkmen diplomats will devote all their knowledge, strength and experience to implement it." Economic /Energy Front

• Turkmenistan completes section of gas line to China LOS ANGELES, Oct. 23 -- Turkmenistan has completed construction on its 188-km section of a 7,000-km natural gas pipeline that extends from Turkmenistan to China, according to official media. “Work on the Turkmen section of the Turkmenistan-Uzbekistan-Kazakhstan-China gas pipeline…is complete,” said the state-owned Neutral Turkmenistan newspaper. Construction of the Turkmen section of the line, at a cost of $400 million, was carried out by Russia’s Stroytransgaz. The whole line, which will transport gas from the Caspian Sea across Central Asia to China, is scheduled to start up by yearend. The pipeline starts from Turkmen gas fields near the Amu Darya river. It then enters Uzbekistan at Olot, then flows on to southern Kazakhstan, and on to Alashankou in China, where it will be connected to the West-East Gas Pipeline. In addition to gas from Turkmenistan and Uzbekistan, the $7.3 billion line is to be supplied from Kazakhstan’s Karachaganak, Tengiz and Kashagan gas fields. China National Petroleum Corp. has already signed a 30-year agreement for the supply of 30 billion cu m/year of gas through the new line. The new development comes at an opportune moment for Turkmenistan, whose gas historically has been piped to Russia. But the Central Asian country has been seeking to diversify its export markets away from Russia. The importance of its strategy was underlined earlier this year after a pipeline explosion sparked a disagreement with Russia’s OAO Gazprom that saw Turkmen gas exports almost completely cut off. Since then, the two sides have been unable to agree on a new export arrangement. The Turkmen government, noting the significance of the new pipeline, said, “Getting gas supplies to China will mark another important milestone in the successful implementation of Turkmenistan's strategy of diversifying energy export routes to world markets.”

• Turkmenistan appoints representatives to IFAS and COMCEC


President Gurbanguly Berdimuhamedov signed a decree according to which Vice Premier Myratgeldy Akmammedov has been appointed member of the Board of the International Fund for Saving the Aral Sea from Turkmenistan. Under another decree of the head of state, State Minister for Economy and Development of Turkmenistan Byashimmyrat Hodzhamammedov will take part in the 25th meeting of the Standing Committee on Economic and Commercial Cooperation (COMCEC) of the Organization of Islamic Conference to be held in Istanbul on 5-9 November 2009. The texts of the decrees were published today in the central mass media, the Turkmenistan.ru correspondent reports from Ashgabat.

• Members of Turkmen-American Business Council outline plans for cooperation A meeting of the Turkmen-American Business Council (TABC) was held in Ashgabat. It was attended by a high-profile delegation of the U.S. business elite led by executive director of TABC Eric Stewart. The delegation consisted of Vice-Presidents of major U.S. companies such as Chevron, Boeing, Case New Holland, John Deere and others, the State News Agency of Turkmenistan (TDH) said. The meeting was attended by members of the Turkmen government, heads of ministries and departments, heads of diplomatic missions accredited in Ashgabat, Turkmen diplomats and members of the Humanitarian Association of World Turkmens who participated in the XII Conference of HAWT. Opening the forum, executive director of the Turkmen-American Business Council Eric Stewart noted the enormous potential of Turkmenistan, its rapid growth and successful advancement along the path of reforms. He stressed that the U.S. businesses were prepared to put at the service of common interests their rich experience and high technologies that are now widely used in the world. According to the official report, there was held a constructive exchange of views on the prospects for building mutually beneficial cooperation in the oil and gas sector, energy sphere, development of the Turkmen part of the Caspian Sea, agriculture, communications and telecommunications, industry and transport infrastructure. Social Front

• Turkmen Environmental Activist Given Five-Year Jail Term DASHOGUZ, Turkmenistan -- Prominent Turkmen environmental activist Andrei Zatoka has been sentenced to five years in prison for hooliganism, RFE/RL's Turkmen Service reports. Zatoka, 53, was found guilty in a court in Dashoguz of attacking a man in a market in the northern Turkmen city on October 20. His supporters say he was attacked by the man and attempted to detain him until police arrived. However, police detained Zatoka instead of the man. His supporters in Moscow held a protest in front of the Turkmen Embassy on October 27 and again on October 29, demanding his immediate release. They said they consider Zatoka's case to be politically motivated and connected to his professional activities. Zatoka, a biologist, has run an environmental-protection group shut down by the government in 2003. The co-founder of the group, Farid Tukhbatullin, now lives in exile in Europe and monitors human rights abuses in Turkmenistan. Zatoka was also detained in December 2006 and charged with possessing and dealing with in arms and dangerous substances, which Human Rights Watch said were trumped-up charges. In January 2007, he was finally released under pressure from the international community when a court granted him a conditional release upon his pledge not to leave the country for three years.


His wife has been living in Russia since that time • Moscow Protest Over Turkmen Environmentalist's Arrest

MOSCOW -- Activists demonstrated at the Turkmen Embassy in Moscow to protest the arrest in Turkmenistan of environmentalist Andrei Zatoka, RFE/RL's Turkmen Service reports. On October 27, some 20 protesters held signs saying "Freedom For Zatoka," "No to repression in Turkmenistan," and "Eight-day investigation reminds us of the Stalin era!" Demonstration organizers told RFE/RL that they will protest again on October 29 when hearings into Zatoka's case are scheduled to begin. Zatoka was arrested in the northern Turkmen city of Dashoguz on October 20. He has officially been charged with hooliganism and assault on an unnamed person. Zatoka and his supporters said they consider the case against the environmentalist to be politically motivated because of his activism.

• Turkmen Police Arrest Green Activist, HRW Says ALMATY (Reuters) -- Police in the Central Asian state of Turkmenistan have arrested a prominent environmental activist in what appeared to be a politically motivated action, Human Rights Watch (HRW) has said. Andrei Zatoka was arrested in the city of Dashoguz this week after being attacked by a stranger at a market, HRW said in a statement on October 23. He was himself accused of causing bodily harm to a passerby. "Zatoka's arrest appears to be a clear move by Turkmen authorities to stifle his activism," U.S.-based HRW said. "Authorities should let him go at once and drop any charges against him."Zatoka, a biologist, has run an environmental protection group shut down by the government in 2003. The co-founder of the group, Farid Tukhbatullin, now lives in exile in Europe and monitors human rights abuses in Turkmenistan. Rights groups say the government of the reclusive ex-Soviet republic tolerates no dissent and routinely locks up activists, a charge it denies. In 2006, a Turkmen court handed down a suspended sentence to Zatoka for possessing and dealing in arms and dangerous substances, which HRW said were trumped-up charges. He has also been barred from leaving the country. Human Rights Watch called on Western governments to put more pressure on Turkmenistan over human rights. "International actors have placed high hopes on Turkmenistan's government as committed to reform. But Zatoka's arrest and other steps backward in recent months unfortunately prove them wrong and call for redoubled efforts to press for urgent improvements."

• Barack Obama congratulates President and people of Turkmenistan on Independence Day

President of Turkmenistan Gurbanguly Berdimuhamedov received a message from U.S. President Barack Obama. As the Turkmenistan.ru correspondent reports from Ashgabat, the message was published today in the central print media of the country. "On behalf of the people of the United States of America I am honored to send best greetings and wishes to you and the people of Turkmenistan on the occasion of Turkmenistan's independence. We greatly appreciate our good relationship with the people of Turkmenistan and looking forward to the further expansion of cooperation between our countries," the U.S. President's message said.

• Ashgabat hosts XII Conference of World Turkmens The XII Conference of the Humanitarian Association of World Turkmens (HAWT) was held in Ashgabat on October 23. The conference brought together representatives of the


Turkmen diasporas from 18 states and delegates from all parts of Turkmenistan. As the Turkmenistan.ru correspondent reports from Ashgabat, Turkmen President Gurbanguly Berdimuhamedov, who is also president of HAWT, spoke at the conference. "Turkmens, wherever they live, will never forget their native land, their traditions, and we believe that the Turkmens all over the world are a one big family, the president said. We have inherited from our ancestors such wonderful qualities as openness, friendliness, ability to get along with neighbors and help them in difficult moments of life. We are always ready to lend a hand of friendship to our compatriots living in different countries."The president expressed confidence that the work of the conference will contribute to the revitalization of the Humanitarian Association of World Turkmens and to the further unity of compatriots. A ceremony of awarding membership cards to the newly elected members of the association was held as part of the forum. In a festive atmosphere, valuable gifts were also awarded to the winners of the contest "The era of the great Renaissance and the Turkmens of the world", which is traditionally held by HAWT among creative art workers. As the State News Agency of Turkmenistan (TDH) said, the World Turkmens will hold a lot of meetings with youth and public associations of Ashgabat in these days.

• Turkmenistan celebrates 18th anniversary of independence On October 27, Turkmenistan marks the main national holiday - Independence Day. By tradition, the day began with a flower-laying ceremony at the Monument of Independence, which was attended by President of Turkmenistan Gurbanguly Berdimuhamedov. A military parade and festive parade of workers started at 10 a.m. on the central square of Ashgabat. It was broadcast live on the national television. The parade was opened by young drummers - students of the military schools under the Military Institute of the Ministry of Defense of Turkmenistan. Then, representatives of all branches of the Armed Forces of the country marched past the square. They were motorized infantry, paratroopers, pilots, air defense units of soldiers, sailors, marines, the border guards. Among the parade participants there were also cadets of the Military Institute, Military Academy of Turkmenistan, as well as officers of the Ministry of Interior and the Police Academy cadets. Modern military equipment adopted the National Army passed the stands in the square. Columns of latest tanks, infantry fighting vehicles, armored personnel carriers, self-propelled guns, anti-aircraft missile systems, rocket launchers, anti-tank batteries, air defense systems followed. The "air parade" was performed by groups of combat helicopters MI-8 and Mi-24, attack aircraft squadrons Su-25 and the supersonic MiG-29 fighters piloted by Turkmen pilots. The parade, which was inspected by the President of Turkmenistan, Supreme Commander-in-Chief of the Armed Forces, Army General Gurbanguly Berdimuhamedov, wrapped up with performances of a separate battalion of guards of honor and combined military orchestra. The parade of workers of Turkmenistan was preceded by the dance performance of graceful Akhal-Teke horses. Accompanied by artists two Akhal-Teke horses performed the ancient Turkmen dance Kushtdepdi. Uzbekistan Political Front

• Uzbekistan: The number of deputy Prime-Ministers is down to six On October 27 Rustam Kasymov, the deputy Prime-Minister of Uzbek government in charge of social issues, science, education, healthcare, culture and contacts with CIS


partners, was released from his position, Uzmetronom.com reports. Rustam Kasymov took over the position of President of University of World Economy and Diplomacy (UWED) whereas Kasymov’s functions were transferred to Abdulla Aripov, another deputy Prime-Minister for information systems and telecommunications as well as former Head of Uzbek Agency for communications and information (UACI). Therefore, the number of deputy Prime Minister chairs in the Uzbek government is down to six from seven. Ad notam, Hakim Muhitdinov, the first deputy of Aripov, became new General Director of UACI. Geo Strategic Front

• Pakistani Troops Capture Town Used By Uzbek Militants TASHKENT -- Pakistani troops have surrounded Kaniguram, a key base for Uzbek Islamic militants in Pakistan's South Waziristan region, RFE/RL's Uzbek Service reports. The town overlooks Karama, a city reportedly being used as a training base for foreign terrorist groups like the Islamic Movement of Uzbekistan (IMU). The Pakistani Army launched an offensive into South Waziristan two weeks ago, aiming to root out militants. General Athar Abbas, a Pakistani Army spokesman, told RFE/RL that "the first achievement is that [Kaniguram] has been surrounded." But he said the Uzbeks living there -- some estimates say as many as 1,000 -- are "really ferocious fighters." Abbas said he is hopeful that they will be defeated. He added that the army has "credible" information that IMU leader Tohir Yuldashev, who was reported killed on October 2, is dead and the group has chosen a "second leader," someone who worked closely with Yuldashev. Abbas said Uzbeks are still in "complete command" of the area and "quite a number of them have been killed," though he did not give a specific number. Abbas said that civilians will not be harmed by the Pakistani army during the fighting, but said he would not discuss the military's tactics until the operation is completed.

• Uzbekistan: Authorities take 27 suspected Islam militants into custody Twenty-seven individuals have been arrested in Uzbekistan on suspicion of religious extremism. A source tells EurasiaNet the authorities are building a case that connects the detainees to a series of murders in Tashkent during the summer. The 27 men, who are all said to come from Syr Darya Province, were reportedly taken into custody in early October. Their detention is believed to be related to the murder of Abror Abrorov, an assistant at Tashkent’s Kukeldash Mosque on July 16; a knife attack on Anvar-qori Tursunov, the chief Imam at the same mosque on July 31; and the murder of Hasan Asadov, an Interior Ministry anti-terrorism and anti-corruption officer who was investigating the crimes at the time of his death on August 9. "Parents and relatives of the arrested men say they know absolutely nothing about [the detainees’] fate. When the relatives went to the local police department, they were told that a couple of days before [October 2] a bag full of explosives was found in front of the provincial prosecutor’s office and that’s also why the men are being detained," the source said on October 26. Economic /Energy Front

• Uzbekistan: The parliament promises to create one million jobs in 2010 On October 29 the legislative house of Olyi Mazhlis (the parliament) of Uzbekistan approved jobs creation and public employment program for 2010, according to which 950 thousand new jobs will be created in the republic, Gazeta.uz reports. Specifically, over 280 thousand jobs are to be established in service sector, 210 thousand jobs – in


outwork and over 60 thousand jobs – in development of production and social infrastructure. The program developers affirm that it is based on the results of current job market analysis, its development forecast until the end of 2009 and program of national economic development, scheduled to 2010. Meanwhile, Uzmetronom.com reports that "basic arithmetic calculations prove inconsistency of governmental program. Assuming that each created job will pay twice as less as official average salary in the republic ($160) one will learn that the government needs to find $1 824 000 000. This is utopian and impossible amount for the state and business".Uzmetronom.com believes that the deputies of Uzbek parliament are far away from reality and strive to implement presidential program on creation of additional jobs. According to the web site, governmental program manipulates the faked numbers.

• Uzbekistan: LG refrigerators to be produced in Samarqand By the end of 2009 OJSC SINO, based in Samarqand (Uzbekistan), will start the production of LG Electronics refrigerators. At this point, the final installation of refrigerators assembly line, based on the technology of famous South Korean company, is in progress. The plan says that the first item will be produced in December of this year. In the next year the plant is planning to produce 50 thousand LG refrigerators per year. LG consumer electronics will be produced at OJSC SINO that has been operating in the industry for few years. Today, the plant produces 7 types of household refrigerators and freezing installation for shops. Since recently the compressors of Italian Zanussi were added to the refrigerators. The Samarqand market is a recognized and attractive market for refrigerators and air conditioners. Today, over a dozen of foreign producers offer their products through local retailers. Social Front

• Another Uzbek Student Dies During Cotton Harvest URGENCH, Uzbekistan -- A 10th young person has died in Uzbekistan while involved in compulsory work on the cotton harvest, RFE/RL's Uzbek Service reports. A witness told RFE/RL that a bus filled with students overturned as it was driving into a cotton field near the western city of Urgench, and one boy died as a result. Earlier this year, two young women died in an accident while attempting to leave a cotton field in the Ferghana Valley, and last year a student was killed by wolves while working in a cotton field. The death from the bus accident is the 10th official death of a student during the cotton harvest season, when schoolchildren are required to take part in the harvest. Uzbekistan is the second-largest cotton exporter in the world. Several major clothing companies have called for a boycott of textiles made with Uzbek cotton because of the government's use of child labor.

• EU Lifts Uzbek Sanctions Despite Rights Concerns LUXEMBOURG (Reuters) -- The European Union has lifted sanctions on Uzbekistan, despite concerns about human rights in the former Soviet republic. Although many EU states are concerned about the rights situation, the 27-country bloc wants to boost relations with a country that could be an important energy supplier and a route for supplies for the Western military mission in Afghanistan. EU foreign ministers said in a statement during talks in Luxembourg there had been progress on human rights. "To encourage the Uzbek authorities to take further substantive steps to improve the rule of law and the human rights situation...and taking into account their commitments, the


council [of EU foreign ministers] decides not to renew the remaining restrictive measures," the statement said. The decision removes an arms embargo, the last of the sanctions imposed over a crackdown on protesters in the town of Andijon in 2005, in which witnesses say government troops killed hundreds of protesters. The EU decided a year ago to lift visa bans on top Uzbek officials to reward what it said was progress in human rights but kept in place the arms embargo for another year. Human rights groups have urged the EU not to end sanctions, saying there has been insufficient progress on human rights in the Central Asian state, a potential source of EU natural-gas imports. "If the arms embargo is lifted without an investigation, the EU will be making a mockery of its own demands and the only form of international pressure over Uzbekistan will be gone," Amnesty International said last week. The EU has been trying to improve ties with Central Asian states to help secure future energy supplies and diversify away from Russian gas and oil. Uzbekistan, which borders Afghanistan, has shown signs of wanting better relations with Europe and allowed the transit of nonmilitary supplies for U.S. troops in Afghanistan this year. But it rebuffed calls to do more to protect human rights during talks with the EU last month, when it told Brussels to improve its own rights record. Rights groups say Uzbekistan has jailed thousands of dissidents and political foes of President Islam Karimov, a charge the government denies.

GCC- GULF COOPERATION COUNCIL


GULF COOPERATION COUNCIL NEWS MONITORING REPORT

MADIHA KAUKAB 10th – 16th Oct 2009

PRESENTATION DATE: 21st Oct 2009

Following news monitoring report is based on the important political, social, economic and Geo-strategic events occurred in Gulf Cooperation Council States along with a short summary of the report.

OUTLINE

SUMMARY………………………………………………………………….....06 GCC…………………………………………………………………...............07 Law of Gulf anti-drug center approved GCC civil service ministers meet in Muscat Gulf regulators to tighten corporate governance


SAUDI ARABIA………………………………………………………………18 International Front Saudi King, Jordanian Monarch discuss regional developments Praise for outcome of Saudi-Syria summit UN plans to send aid from Saudi King Abdullah congratulates Obama on winning Nobel Media response towards Obama's noble prize Situation in Yemen worrying Kingdom, Egypt sign a host of cooperation agreements Naif urges Arab action to save Iraq Political Front Saudi activists rush to launch rights group to escape ban Social Front 700 cast vote in JCCI election Focus on businesswomen in JCCI poll Most online criminals young’ 6,000 health workers recruited by MOH Judicial project to usher in new era Strategic plan to make Jeddah a world-class city Online criminals risk jail sentences, fines Swine Flu No swine flu cases found in Jeddah schools KAUST Sudais commends opening of KAUST KAUST focused on water desal and reuse research Economic Front SAMA policies help banks weather crisis UAE………………………………………………………………….............20 International Front UAE, Russia discuss judicial cooperation Lebanese speaker in UAE amid Shiite expulsion row


UAE Foreign Ministry discusses bilateral cooperation with Greece Social Front UAE does not target any nationality: president Nuclear Energy Front UAE Reaffirms Stand on Peaceful Use of Nuclear Technology KUWAIT………………………………………………………………….......23 International Front Israel's intransigence encourages other nations to follow suit: Kuwait Syrian Vice President expected in Kuwait Monday Kuwait praises rich Bahraini judicial system Kuwait condemns Israeli "systematic criminal acts" against Palestinians Political Front Kuwaiti MP seeks to scrap Sharia controls in election law Social Front Govt discusses implementation of UN anti-corruption treaty BAHRAIN………………………………………………………………….......23 Political Front Bahrain Government vows bridges of co-operation Nuclear Energy Front Bahrain urges steps to solve nuclear crisis Economic Front Crown Prince hails economic vision QATAR………………………………………………………………….......24 International Front Saudi-Qatar committee on borders begins meeting


Qatar, Malaysia hold talks Qatar Keen on Srengthening NPT Amir of Qatar meets with Hamas leader Khaled Meshaal 'Darfur workshop calls for seizing opportunity' Qatar, Turkey discuss bilateral relations OMAN………………………………………………………………….......26 Sultan Qaboos among most influential Arab leaders International Front Oman, Algeria hold talks Social Front Sultanate renews plea for peace in region Nuclear Energy Front Oman calls for a nuclear-free region Oman supports a nuclear free middle east

SUMMARY The Council of Ministers approved Monday the basic law of the Gulf Center for Criminal Intelligence set by the Gulf Cooperation Council (GCC) as part of the six-member group’s efforts to combat drug trafficking. The regional center based in Qatar strengthens cooperation and coordination among member states in fighting drug trafficking and organized crime related to it. GCC leaders endorsed the plan to set up the center last December. Custodian of the Two Holy Mosques King Abdullah, who presided over the Cabinet meeting, briefed the ministers on the outcome of his recent visit to Syria. Meanwhile the Eighth Meeting of the GCC Civil Service Ministers kicked-off at Barr Al Jissah Resort here on Tuesday with GCC Secretary-General Abdulrahman Al-Atiyyah attending. The meeting, chaired by Omani Minister of Civil Service Sheikh Mohammed Bin-Abdullah Al-Harthi, will discuss a host of important issues and projects including the guidelines of the GCC strategy for development of human resources. International Front SAUDI ARABIA: Lebanese newspapers yesterday welcomed the outcome of the Saudi-Syrian summit that encouraged the formation of a unity government in Beirut and stressed that it was now up to the Lebanese to settle their differences. Meanwhile, the UN refugee agency plans to send aid supplies for the first time from Saudi Arabia into northern Yemen today to help some 2,000 people stranded near the border after fleeing fighting. Its aid convoy carrying tents, mattresses, blankets and other items was delayed this week while UNHCR officials sought security clearances from all sides. On the other side, Custodian of the Two Holy Mosques King Abdullah on Saturday congratulated US


President Barack Obama on winning the Nobel Peace Prize. Saudi Ambassador to Washington Adel Al-Jubeir conveyed the greetings of the king and Saudi people to the president. In a statement on the occasion, Al-Jubeir said the world was pinning great hopes on the US president’s continuous efforts to settle the Palestinian-Israeli conflict. He also praised Obama’s Cairo address to reach out to the Muslim world. Second Deputy Premier and Minister of Interior Prince Naif said that Saudi Arabia was deeply concerned with developments in neighboring Yemen. “We are cooperating with our Yemeni brothers at maximum levels to ensure Yemen’s security,” he said, along with this he urged Iraq’s neighbors to stand together with Iraq in its fight against terrorists who destabilize the country. UAE: The UAE and Russia have concluded the second round of discussions on the judicial cooperation in Abu Dhabi. Abdul Rahman Murad Al Balochi, Director of the Department of International Cooperation at the ministry of Justice, said the talks covered the judicial cooperation, seizure and confiscation of tools used in crimes. OMAN: His Majesty Sultan Qaboos bin Said has been ranked among the top 10 of the 500 most influential leaders in the contemporary Arab and Islamic world by a prominent international encyclopaedia. The World Islamic Encyclopaedia (WIS) described Sultan Qaboos as a leading global personality who followed “a policy of political partnership in his regional and international relations”. QATAR: The joint Saudi-Qatari technical committee on land and sea borders began a meeting where the two sides focused on the issues concerning the demarcation of borders between Saudi Arabia and Qatar. In the same week, HE the Prime Minister and Foreign Minister Sheikh Hamad bin Jassim bin Jabor a-Thani received the Turkish President’s senior adviser and special envoy Ersat Hurmuzlu yesterday. Bilateral relations and issues of mutual concern were reviewed during the meeting. The meeting was attended by HE Director of the Premier and Foreign Minister’s Office Abdullah bin Eid al-Sulaiti. Meanwhile Amir of Qatar Sheikh Hamad bin Khalifa Al-Thani met with the President of the political bureau of Hamas, Khaled Meshaal on the latest Palestinian developments. Qatar news agency said the meeting with the Amir of Qatar came on the occasion of Mishaal’s visit to Doha. Meeting was attended by President of the Amiri Diwan Sheikh Abdurrahman bin Saud Al-Thani and secretary of the Amir’s office Saad Rumaihi. In the last week Qatar again reaffirmed that it is keen on strengthening the Non-Proliferation Treaty and activating the pillars underlying it, namely non-proliferation, disarmament and peaceful uses of nuclear energy. Political Front SAUDI ARABIA: A group of veteran Saudi activists challenged the government yesterday by announcing a new association to push for human and political rights, saying the rights situation has deteriorated in the kingdom. Eleven activists said they rushed out their announcement on the creation of the Association for Civil and Political Rights because the government was already trying to stifle the move by questioning potential signatories. Elections for four-year terms on the new board of directors of the Jeddah Chamber of Commerce and Industry (JCCI) were held Saturday in the towns of Rabigh, Laith and Qunfuda. The three constituencies account for about 10 percent of the chamber’s entire membership of some 40,000. Businesswomen in Jeddah who are members of the


chamber will cast their votes on Sunday. Male members will vote for three days beginning Monday. A total of 62 candidates, including 50 traders, 12 industrialists and seven women, are competing for 12 of the 18 seats. Six members will be appointed by the minister of commerce and industry. Observers described the election atmosphere in the three towns as “calm” and said the voting was taking place amid promises from the contestants to support businesswomen, young businessmen and small and medium enterprises (SME). The elections are expected to attract a number of eligible voters since the old system of lists has been changed into a one-man-one-vote system. Social Front SAUDI ARABIA: Most online criminals, in the kigdom, are young, aged between 14 and 38, and are motivated by psychological and financial reasons into committing cybercrime. On the other side the Ministry of Health has recruited over 6,000 health workers, including doctors, nurses and paramedics, Great Britain, Ireland, Nigeria, Azerbaijan and South Africa to work in the Ministry of Health. KAUST: Sheikh Abdul Rahman Al-Sudais, imam of the Grand Mosque in Makkah, on Friday commended the establishment of the King Abdullah University of Science and Technology (KAUST) in Thuwal, 80 km northwest of Jeddah, as a major cultural and historic achievement. “Everyone who loves science and knowledge will support this great qualitative development in (education),” said Al-Sudais while delivering his Friday sermon to thousands of worshippers who thronged the Grand Mosque. UAE: The UAE president told Lebanon’s parliament speaker that his country had the right to act against foreigners “violating the law,” in reference to expelled Lebanese Shias, Swine Flu SAUDI ARABIA: No cases of swine flu have been found in any of Jeddah’s schools yet though so many concerns have been showed for the infectious disease. Nuclear Energy Front UAE: The UAE recently passed a resolution for the peaceful use of nuclear energy stating that it was an important step to embody a peaceful nature to all aspects of its programme, which will come into commercial operation in 2017, the nation’s Permanent Representative to the UN, Ahmed Al Jarman said at the 64th session of the UN General Assembly, Economic Front SAUDI ARABIA: Despite the global financial crisis, the Kingdom’s banking sector has shown overall resilience, benefiting from the Saudi government’s continued commitment to support the economy through infrastructure projects and planned expansion. The Saudi Arabian Monetary Agency’s (SAMA’s) prudent policies have helped banks weather the crisis.

DETAILED REPORT

GCC


Law of Gulf anti-drug center approved The Council of Ministers approved Monday the basic law of the Gulf Center for Criminal Intelligence set by the Gulf Cooperation Council (GCC) as part of the six-member group’s efforts to combat drug trafficking. The regional center based in Qatar strengthens cooperation and coordination among member states in fighting drug trafficking and organized crime related to it. GCC leaders endorsed the plan to set up the center last December. Custodian of the Two Holy Mosques King Abdullah, who presided over the Cabinet meeting, briefed the ministers on the outcome of his recent visit to Syria. The two countries expressed their desire to strengthen their political, economic, commercial, media and cultural relations. Speaking about a number of Arab and international events being held in Saudi Arabia, King Abdullah said: “The Kingdom will exert all possible efforts to boost cultural movement in the Arab world.” The Cabinet congratulated King Saud University and King Fahd University of Petroleum and Minerals for winning the first and second positions in the Arab world in the Times Higher Education-QS World University Rankings. The Cabinet expressed its satisfaction over the presence of 90 percent of students when schools reopened last Saturday despite the H1N1 scare. It stressed that primary schools and kindergartens would reopen next Saturday. Culture and Information Minister Abdul Aziz Khoja said the Cabinet approved the aviation agreement with Oman and authorized the foreign minister to hold talks with his French counterpart to reach an agreement on exempting holders of diplomatic and special passports from entry visas. The Cabinet also approved the marine transport cooperation accord with Turkey and the memorandum of understanding signed with China on quarantining individuals at entry points for health reasons. GCC civil service ministers meet in Muscat The Eighth Meeting of the GCC Civil Service Ministers kicked-off at Barr Al Jissah Resort here on Tuesday with GCC Secretary-General Abdulrahman Al-Atiyyah attending. The meeting, chaired by Omani Minister of Civil Service Sheikh Mohammed Bin-Abdullah Al-Harthi, will discuss a host of important issues and projects including the guidelines of the GCC strategy for development of human resources. The strategy has been developed by Bahrain Civil Service Bureau (CSB), Oman News Agency (ONA) quoted Al-Harthi as saying in the opening speech. "The meeting will probe the proposed web portal for the Gulf civil service institutions and administrative development institutes," the minister said. The agenda of the meeting also includes a proposal of the Custodian of the Two Holy Mosques to accelerate the performance of civil service institutions and remove obstacles hindering the Gulf joint action. "Any country's wealth is not only based on the natural resources it has, but also on its ability to benefit from these resources," he said. "This prompts us to always seek the means and alternatives that secure human resources development, increase its efficacy and maximize benefit of sustainable development in our countrie," he added. Meanwhile, Al-Atiyyah voiced hope that the meeting would be a step towards full equality among the GCC citizens. "The


GCC public and private sectors have to work together to improve the standards of living of the GCC citizens through creation of more jobs and facilitation of movement of workers," the GCC chief underscored. Gulf regulators to tighten corporate governance Regulators in the Gulf Arab region hit by a number of corporate scandals-are pushing for stricter corporate governance standards in the banking industry, an expert said yesterday. Kuwait, Saudi Arabia and Oman are pressing for stricter enforcement of existing corporate governance guidelines, according to Nikolai Nadal, director at think-tank Hawkamah Institute of Corporate Governance, which is working with authorities to improve governance standards. Calls for improvement in standards come as a number of scandals involving lawsuits in the broader corporate sector hit the region since the credit crisis. "The central bank of Kuwait and SAMA (Saudi Arabian Monetary Authority) are considering introducing mandatory reform of corporate governance guidelines. The UAE (United Arab Emirates) is still in draft stages," Nadal told Reuters on the sidelines of a conference. Measures will vary from country to country. We're suggesting certain proposals to be mandatory... The framework is there. Now SAMA is starting to tighten the bolts... make sure enforcement measures are in place and sending strong messages to companies. Prominent Saudi business groups Saad and Ahmad Hamad Algosaibi & Bros (AHAB) shocked the Middle Eastern banking community when they defaulted on some of their debt in May.

SAUDI ARABIA International Front Praise for outcome of Saudi-Syria summit Lebanese newspapers yesterday welcomed the outcome of the Saudi-Syrian summit that encouraged the formation of a unity government in Beirut and stressed that it was now up to the Lebanese to settle their differences. Summit of consensus in Damascus: for a national unity government in Lebanon," said the front-page headline in the daily As-Safir, which is close to the Hezbollah-led opposition supported by Syria and Iran. The Syrian-Saudi summit shows no Lebanese can overpower another," read the headline in Al-Akhbar, another pro-opposition daily. Analyst Saadallah Mazraani dubbed the two-day visit to Syria by Saudi King Abdullah as "the first US failure" in his column for Al-Akhbar. Abdullah and Syrian President Bashar al-Assad after meeting in Damascus on Thursday urged the formation of a national unity government in Lebanon, saying it would be the "basis for stability, unity and strength. Dailies close to the Saudi-backed majority, too, welcomed the joint Saudi-Syrian call. "The majority welcomes the summit and hopes for an end to obstacles in forming the government," read a headline in the daily Al-Mustaqbal, which is run by the family of prime minister-designate Saad Hariri.


Hariri has endeavored to form a national unity government since June, when his Western- and Saudi-backed coalition clinched victory in a general election over a Hezbollah-led alliance. However it was widely believed that barring a thaw in relations between regional powerhouses Saudi Arabia and Syria, his efforts were bound to fail. Syria was the main powerbroker in Lebanon for nearly 30 years until the 2005 assassination of Hariri's father Rafiq, a five-time premier who was close to the Saudi monarchy and held Saudi nationality. There were widespread suspicions that Syria was behind the killing, an allegation Damascus has consistently denied. Hariri's assassination all but froze relations between Damascus and Riyadh, which were already at odds over the 2003 US invasion of Iraq. Saudi Arabia also disapproves of the Syrian regime's close ties to Iran and Hezbollah. Syrian Foreign Minister Walid Muallem was quoted by As-Safir on Friday as saying that this week's summit between the two countries was "a success on all levels. The goal of both Syria and Saudi Arabia is the stability of Lebanon, and we feel that forming a national unity government is the key," he told the Lebanese daily. "It will be formed by the Lebanese and we support all consensus," he added. "The ball is now in the Lebanese court." "The results of the summit will not be immediately apparent, but ... we have overcome our differences and they are behind us now." UN plans to send aid from Saudi The UN refugee agency plans to send aid supplies for the first time from Saudi Arabia into northern Yemen today to help some 2,000 people stranded near the border after fleeing fighting. Its aid convoy carrying tents, mattresses, blankets and other items was delayed this week while UNHCR officials sought security clearances from all sides. “Our cross-border operation to deliver assistance from Saudi Arabia to the internally displaced persons near the border is scheduled for tomorrow, Saturday,” spokesman Andrej Mahecic of the UN High Commissioner for Refugees told a news briefing. UN agencies say Yemen’s conflict has displaced about 150,000 Yemenis since it first flared in 2004. But limited access to the war zone means they have no clear idea how many have fled their homes since the army began a major offensive against Shia rebels on Aug. 11. Saudi Arabia and the United States have contributed $ 1m and $ 1.2m, respectively, towards UNHCR’s emergency appeal of $ 5m for Yemen this year, he said. Every day scores of Yemeni civilians straggle into the scorching, sandblown Al-Mazraq camp near the Saudi border, fleeing raging battles. New arrivals reaching the camp in Hajjah governorate have told the UNHCR the fighting in Saada had spread to southern districts as more and more displaced are fleeing from these parts, particularly from Haidan district. Nearly 200 people arrive at Al Mazraq each day while others stream into the capital Sanaa, Mahecic said. King Abdullah congratulates Obama on winning Nobel Custodian of the Two Holy Mosques King Abdullah on Saturday congratulated US President Barack Obama on winning the Nobel Peace Prize. Saudi Ambassador to Washington Adel Al-Jubeir conveyed the greetings of the king and Saudi people to the president. In a statement on the occasion, Al-Jubeir said the world was pinning great hopes on the US president’s continuous efforts to settle the Palestinian-Israeli conflict. He also praised Obama’s Cairo address to reach out to the Muslim world.


US Ambassador to Saudi Arabia James B. Smith said he was delighted over Obama winning the most coveted prize. “We are honored that our new president has been chosen for an award that captures the desire of the world for peace,” he said. He added: “This desire and vision was first shared by President Obama with Custodian of the Two Holy Mosques King Abdullah in June and then publicly expressed in his seminal address to the world in Cairo entitled ‘A New Beginning.’” In that speech, Obama said that the US seeks a new start with the Muslim world that is based on mutual interest and mutual respect — “one based upon the truth that America and Islam are not exclusive and need not be in competition. Instead, they overlap, and share common principles, principles of justice and progress, tolerance and the dignity of all human beings.” Media response towards Obama's noble prize That US President Barack Obama yesterday was awarded the Nobel Peace Prize has taken everyone by surprise. The initial reaction was: Peace prize for what? The absurdity indeed is made clear in the citation produced by the judges of the $1.4 million prize. “Only very rarely has a person to the same extent as Obama captured the world’s attention and given its people hope for a better future.” That is absolutely true. Not since John F. Kennedy entered the White House has any US president come to office on such a tidal wave of international hope. Nevertheless, the Nobel prizes, including the peace prize are awarded for outstanding achievement, not glittering hope. Obama has been in office for just nine months of his four-year term. America is not at peace. Its troops are still fighting and dying in Iraq and Afghanistan. Indeed very shortly Obama may announce a ratcheting up of the US military effort in Afghanistan. His talks with Russian President Dmitry Medvedev and Premier Vladimir Putin have led to the abandonment of the ill-conceived Bush European missile shield and paved the way for a renewal of Strategic Arms Limitation Treaty (SALT) negotiations. But nothing substantive has yet been achieved. The trilateral meeting he hosted September at the White House between Palestinian President Mahmoud Abbas and Israeli Premier Benjamin Netanyahu has not yet borne any fruit; rather the Israeli government continues to back the expansion of existing illegal settlements on the West Bank and in East Jerusalem. Nothing substantive has yet been achieved. Obama’s speech in Cairo after he had come to Saudi Arabia during his Middle East visit in May was an inspiring address to the Arab world, very much in the mold of the speeches he made to US electors during his run for the Oval Office. True, it inspired hope. But it has not yet translated into achievement. His peace laureateship at this time is therefore entirely inappropriate. It belittles some past winners of this important and prestigious award and in a way will diminish the impact of his success if he does achieve peace in the Middle East, if he does bring about a meaningful new SALT deal and if he does even bring an end to violence in Afghanistan. No one would award a gold medal to a highly promising athlete when he was less than a quarter of the way down the track. So therefore Obama’s political race has to be run right through to the line, so his political achievement in terms of peace, can be judged properly and fairly. It is hard to resist the


temptation to wonder if the opinion of the Nobel Peace Prize judges may not have been hugely influenced by the apparently radical change the Obama administration represents over its predecessor. To what extent was their decision driven by the fact that Obama was not the gun-totting, tongue-tied Texan George W. Bush? At the moment the only people who could conceivably deserve this award are the Obama speechwriters. They have delivered the golden words. Now the president has to deliver the golden deeds. Situation in Yemen worrying Second Deputy Premier and Minister of Interior Prince Naif said Sunday that Saudi Arabia was deeply concerned with developments in neighboring Yemen. “We are cooperating with our Yemeni brothers at maximum levels to ensure Yemen’s security,” he said. Prince Naif’s statement comes in the backdrop of a major campaign launched by the Yemeni government to crack down on Houthi insurgents in Saada province in the north of the country, adjacent to the Saudi border. Speaking to reporters before leaving for Cairo on a four-day official visit, Prince Naif said he was carrying a message from Custodian of the Two Holy Mosques King Abdullah to President Hosni Mubarak of Egypt. Prince Naif is on his first visit to Egypt after becoming the second deputy premier in March 2009. The royal visit comes in response to an invitation from Egyptian Prime Minister Ahmed Nazif. “This is an opportunity to discuss ways of strengthening cooperation between the two countries in light of growing demands to develop our deep-rooted relations in various fields,” he said. Educational and security cooperation will figure high in Prince Naif’s talks in Cairo with Egyptian officials. “The visit will witness the signing of economic and educational agreements,” he said. Prince Naif is accompanied by a high-level delegation including Commerce and Industry Minister Abdullah Zainal Alireza, presidents of two Saudi universities and senior security officers. On arrival in Cairo, Prince Naif was received at the airport by Premier Nazif and other top Egyptian officials. Speaking to reporters there, the prince said he considered Egypt his second home. “Egypt is always in our hearts,” he said. On his part, Nazif said he expected Prince Naif’s visit to take Saudi-Egyptian relations to new heights. “A number of bilateral agreements will be signed during the visit,” he added. Saudi Arabia and Egypt enjoy strong relations under the leadership of King Abdullah and Mubarak. The two countries have identical views on major regional and international issues. Earlier this year, the two leaders launched two high-speed passenger ferries to operate between the Saudi port of Dhuba and Egypt’s Safaga. The ferries will reduce travel time between the two countries from eight hours to two hours and 15 minutes. Kingdom, Egypt sign a host of cooperation agreements Second Deputy Premier and Minister of Interior Prince Naif held talks here on Monday with President Hosni Mubarak on major regional and international issues. “My meeting with President Mubarak was successful and fruitful,” Prince Naif told reporters, adding that Mubarak spoke highly about Saudi leaders and people. He also disclosed plans to sign two agreements with the Egyptian Interior Ministry regarding extradition of prisoners and combating drugs. “People in the two countries will benefit


from these two accords,” he said. “Saudis will receive special care and cooperation from Egyptian authorities to solve their problems,” the prince said, adding that Egyptians working in the Kingdom would receive the same care. The meeting with Mubarak was also attended by Prince Fahd bin Naif, State Minister Musaed Al-Aiban, Commerce and Industry Minister Abdullah Zainal Alireza, Saudi Ambassador to Cairo Hisham Nazer, and Gen. Abdul Rahman Al-Rubaian, supervisor of Prince Naif’s office. Saudi Arabia and Egypt, meanwhile, signed a series of agreements to promote cooperation in education, scientific research and industry. The agreements were signed following a meeting between Prince Naif and Egyptian Prime Minister Ahmed Nazif. The two leaders explored prospects of expanding cooperation between the two Arab countries. Prince Naif highlighted the historic relations between Saudi Arabia and Egypt. “The agreements that were signed today reflect the continuing strong cooperation between the two countries,” he added. Naif urges Arab action to save Iraq Second Deputy Premier and Minister of Interior Prince Naif on Wednesday urged Iraq’s neighbors to stand together with Iraq in its fight against terrorists who destabilize the country. He also told a meeting of interior ministers from countries neighboring Iraq to identify problems facing the war-torn country and adopt appropriate decisions to solve them, without interfering in its internal affairs. “The changes and developments that are taking place in Iraq, the region and the world, call for all to double efforts and evaluate matters without bias to identify problems,” he said. The meeting was attended by interior ministers from Iraq, Iran, Egypt, Syria, Turkey, Kuwait and Jordan in addition to representatives of the Organization of the Islamic Conference (OIC) and the Arab League. He described terrorists as Khawarij who fought against the fourth Caliph Ali bin Abitalib. “We have to stand together with Iraq against these killers who tarnish the image of Islam. They are ignorant and are working against Islam. They are the enemies of the Arab and Islamic Ummah,” he said. Prince Naif emphasized the need for a campaign to prevent militants from giving expression to their destructive thoughts and ideas. “We have to reach an agreement that none of us should give refuge or passage to these militants, and we should implement this agreement,” he said. Prince Naif said Al-Qaeda terrorists were waging a war against Saudi Arabia, the land of Islam and the Two Holy Mosques. “We should protect Iraq seriously and sincerely without making our countries a passage or headquarters for those who work against Iraq and we should do this for all our countries,” the minister said Political Front Saudi activists rush to launch rights group to escape ban A group of veteran Saudi activists challenged the government yesterday by announcing a new association to push for human and political rights, saying the rights situation has deteriorated in the kingdom. Eleven activists said they rushed out their announcement on the creation of the Association for Civil and Political Rights because the government was already trying to stifle the move by questioning potential signatories.


The idea is to form a society to defend civil and political rights," Mohammed Al-Qahtani, co-founder and a politics professor, said. "They have started interrogating people who might sign this document," he said, without offering details. The group, including professors and law experts, sent their announcement to Saudi King Abdullah on Sunday night together with a call for the government to complete legislation that would permit the formation of private or non-governmental organizations. Saudi Arabia is an absolute monarchy and prohibits all political parties, unsanctioned private associations and NGOs. The declaration says the group wants to address an increase in violations of human rights and political freedoms in Saudi Arabia in recent years. They also want to study the causes of violent attacks inside the kingdom, such as those carried out by Al-Qaeda and other radical Islamist groups since the 1990s, they said. Pro-democracy activists in the kingdom often face arrest and detention without charge or trial, though new arrests have dwindled in the past two years, according to activists. Since 2001, however, several thousand people have been arrested and held without charge or trial on suspicion of involvement in radical Islamist groups like Al-Qaeda. The activists said that groups like theirs were necessary in the fight against extremist violence. "Depriving people of being able to express peacefully their views will push them to forming secret violent organizations," they said in a statement. "Despite a promising start to reforms in the reign of King Abdullah... these reforms have stalled," the statement said. "The country is open now, rhetorically at least," Qahtani explained. He cited Abdullah's program of regular "national dialogues" on important social issues, and the opening of a new science university last month that for the first time allows men and women to mix openly. Qahtani said the association wants to foster research on political and social issues and publicize problems in the political and human rights areas. "Whatever goes wrong in our society is related to the political regime," he said. They sent the declaration to King Abdullah, he added, because he "holds all the authority. Qahtani said the activists were no longer waiting for the government to pass a long-awaited law on NGOs that would give legal basis to their association. A draft law has sat without movement in the Council of Ministers since approval by the consultative Shura Council nearly three years ago. Ibrahim Mugaiteeb, who runs the unsanctioned Human Rights First Society, said this is a stalling measure of anti-reformists and that activists should not wait for government permission. The only way to receive recognition from the government is for the government to see that they are persisting," he said. "I am hoping that the Saudi authorities will look positively at these types of movements and organizations because we are all pro-reform, and we are actually fighting an ideological battle for the regime," Mugaiteeb said. "When it comes to fundamentalism you cannot only fight it by security," he said. Besides the independent Human Rights First, Saudi Arabia has two officially sanctioned rights organizations, both created in 2004: one fully controlled by the government and another which operates more independently. Terrorism Front US may transfer up to 100 detainees to Saudi Arabia - Pentagon


The Pentagon said Wednesday it is considering releasing roughly 100 detainees from the US Guantanamo military prison to Saudi Arabias rehabilitation program. "The Saudis have shown that they have an effective rehabilitation program that theyve been executing," said Pentagon spokesman Geoff Morrell at a press briefing. "We have been exploring the possibility of having some of these detainees released into that program and transferred from Gitmo and placed into that program," Morrell confirmed. He told reporters that talks between the US, Saudi Arabia and Yemen have been for sometime to figure out a way to move 100 or so mostly Yemeni detainees out of the military prison in Guantanamo Bay, Cuba while ensuring they "dont return to a life of terror." The Obama administration has pledged to close the infamous prison by early 2010, and release or bring to trial the remaining suspected terrorists detained there. Congress has sought to block any Guantanamo detainees being resettled in the United States. Social Front 700 cast vote in JCCI election Amid a feverish race, the supporters and campaigners of the candidates for a new term of the board of directors of the Jeddah Chamber of Commerce and Industry (JCCI) all gathered together in a tent in front of the polls center at the Jeddah Exhibition and Convention Center. Monday saw the first of the three consecutive days dedicated for males to cast their votes. There was a medium turnout of 1,000 people but only 700 were allowed to vote, as the rest did not have proper identification. The balloting was done in morning and evening sessions. Voters usually prefer to come in the evening due to cooler temperatures and because they would have finished their work in the morning. Many candidates had established luxurious air-conditioned tents with comfortable seating. They also served various kinds of food and drinks including sweets, chocolates, dates, tea and coffee in an open buffet. All 55 male candidates were present at the polls center. The balloting process went smoothly with no mistakes or violations. Deputy Secretary of the JCCI Othman Basaqr stressed the neutrality of the chamber in the election process. “The JCCI stands at the same distance from all the candidates,” he said. However, there were complaints about the apparent lack of precautionary measures against the swine flu pandemic. “This is a real tragedy. The tent is 30 meters by 10 meters with no air-cooling system. The heat was unbearable and an epidemic could easily spread among the hundreds of people cramped there due to over-crowding and lack of ventilation,” a campaigner said. Focus on businesswomen in JCCI poll Elections for four-year terms on the new board of directors of the Jeddah Chamber of Commerce and Industry (JCCI) were held Saturday in the towns of Rabigh, Laith and Qunfuda. The three constituencies account for about 10 percent of the chamber’s entire membership of some 40,000.


Businesswomen in Jeddah who are members of the chamber will cast their votes on Sunday. Male members will vote for three days beginning Monday. A total of 62 candidates, including 50 traders, 12 industrialists and seven women, are competing for 12 of the 18 seats. Six members will be appointed by the minister of commerce and industry. Observers described the election atmosphere in the three towns as “calm” and said the voting was taking place amid promises from the contestants to support businesswomen, young businessmen and small and medium enterprises (SME). The elections are expected to attract a number of eligible voters since the old system of lists has been changed into a one-man-one-vote system. Competition has been fierce among candidates who were keen to present their platforms to voters during the campaign. Observers described some programs as “theoretical” which were felt to be unrealistic and others as “rational” which had more achievable aims. “Most of the platforms were similar. They all focused on the same issues: supporting businesswomen and ensuring them a proper atmosphere, supporting young businessmen and supporting SMEs. Ali Barshaid, the owner of an SME, described most of the programs as “impractical” and said this was because many of the candidates lacked experience in the work of the chamber and had no idea about the problems businessmen faced. Ali Hassan Nagoor, a candidate, said many of those running were new faces not known to the business community in Jeddah. Abdullah Dahlan, another candidate, said the large number of candidates would divide the voters and not be conducive to a good election process. “Many of the candidates have no clear-cut election platforms while the JCCI, one of the most important chambers in the Middle East, needs new and creative ideas,” he said. Most online criminals young’ Most online criminals are young, aged between 14 and 38, and are motivated by psychological and financial reasons into committing cybercrime, said Mansour Al-Juhani, professor at the Naif Arab University for Security Sciences. Al-Juhani made the statement on Monday during the opening of a three-day conference on combating cybercrime. The event has been organized by the Bureau of Investigation and Public Prosecution (BIPP) in cooperation with Naif Arab University for Security Sciences. The first session, chaired by Ibrahim bin Ali Dakheel, started at 9 a.m. Al-Juhani said perpetrators are individuals with excellent IT skills with particular expertise in dealing with computer networks. He added that they are, however, not violent. In his presentation, Nasser Al-Mashari said that online criminals can commit their crimes in a matter of minutes sitting at home. As many as 25 experts representing 14 countries will present various papers on combating cybercrime during the forum. Academics from GCC countries, Egypt, Jordan, Lebanon, US, Britain, France, and Pakistan will discuss various issues in nine sessions during which a number of workshops will also take place. The conference will also discuss contemporary cyber crime, its occurrence in the Arab world, experts’ opinions on the issue and how they can positively interact with each other. The second session started at 10 a.m. 6,000 health workers recruited by MOH


Over 6,000 health workers, including doctors, nurses and paramedics, have been recruited from Great Britain, Ireland, Nigeria, Azerbaijan and South Africa to work in the Ministry of Health (MoH). “These personnel... possess good track records in their relevant fields in their respective countries,” said Dr. Mohammed Hashim, assistant deputy minister of health for strategy and development. He added that this is the first time that the Ministry of Health has employed such a large number of health workers, adding that the recruitment drive has been undertaken to fulfill the Kingdom’s growing demands. He added that 3,000 health workers, including 1,000 doctors and 2,000 nurses, have already been posted to various hospitals throughout the Kingdom. “The remaining 1,600 doctors and 2,600 nurses will be arriving soon in the Kingdom to take up their positions at hospitals and clinics,” he said. Dr. Hashim said that Health Minister Dr. Abdullah Al-Rabeeah set up a special committee to screen applicants before their appointment. “The ministry has been particularly keen to appoint suitable persons to maintain international health standards in hospitals and clinics,” he added. Meanwhile, the Ministry of Health is making arrangements to host, on Wednesday, the first international gathering of heads of scientific societies. The forum, which is to be held at Riyadh’s Marriott Hotel, will focus on the role of societies in training health officials to disseminate health messages to members of the public. Judicial project to usher in new era The inauguration by Custodian of the Two Holy Mosques King Abdullah of the first phase of a major project to upgrade judicial facilities early next year will open a new era for the Kingdom’s judicial system, said Justice Minister Muhammad Al-Eissa on Tuesday. “The Ministry of Justice is committed to carrying out its responsibilities in the best possible manner and overcoming all difficulties that obstruct the speedy grant of rights and justice,” the minister said while announcing the quick implementation of the project. He said the project, which was initiated by King Abdullah, aims at mobilizing knowledge, expertise, technology and manpower in the service of Shariah. “The speeding up of the judicial process and ensuring justice are the hallmarks of development,” he added. Al-Eissa spelled out his ministry’s efforts to develop the Kingdom’s judiciary in line with modern developments, accommodating the best practices of other countries, such as the pleading of cases in courts through lawyers and the publication of court verdicts. He said Saudi judges were highly qualified to do their jobs. Al-Eissa said King Abdullah would also open an international conference entitled “The Diversity of Criminal Verdicts: Toward Developing a Scientific Basis for Punishments.” He said the conference would focus on setting out the basic principles for punishments in order to avoid different verdicts in similar cases. At the same time, the courts will consider the backgrounds of defendants, especially those with previous criminal records. He said international experts would take part in the conference and their recommendations would be presented to King Abdullah for his approval. “We at the Ministry of Justice are working to implement the king’s vision for the Kingdom’s judiciary in order to achieve a high level of efficiency. This can be done by facilitating the judicial process,” he said.


Strategic plan to make Jeddah a world-class city An agreement has been signed between the Jeddah municipality and Jeddah Chamber of Commerce and Industry (JCCI) to realize the strategic vision of making Jeddah a world-class city capable of hosting major international events. Makkah Gov. Prince Khaled Al-Faisal presided over the signing ceremony at his office on Wednesday as Jeddah Mayor Adel Fakieh and JCCI Chairman Muhammad Al-Fadhl signed the memorandum of understanding (MoU). “The MoU aims at strengthening the relations between JCCI and the municipality to improve services required for the city’s development plans and investment projects,” said Fakieh. “This is the first practical step toward implementing the strategic plan for the development of Jeddah,” the mayor said, adding the chamber would organize seminars and workshops and contract consultancy offices in order to achieve the agreement’s objectives. The MoU includes a number of important aspects for enhancing Jeddah’s facilities in terms of building new roads and utility services, to meet the requirements of the city’s growing population. The MoU identified the role of the private sector in economic, social and construction projects for the Makkah province in general and Jeddah in particular. “The MoU provides a framework for the participation of businessmen in implementing small, nonprofitable projects for the benefit of society,” the mayor said. He added it also aims to protect the city’s environment and eradicate pollution. In a similar statement, Al-Fadhl said the agreement would contribute to making Jeddah an international city, hosting major forums and events. He also disclosed plans to establish a fund for this purpose. “The JCCI representing the private sector and the municipality representing the public sector would work together to make Jeddah an important city on the economic map and play a significant role in achieving sustained progress for the Kingdom,” he said. In a previous statement, Al-Fakieh highlighted the municipality’s efforts to make Jeddah a beautiful haven for coming generations. “The city plans to attract more people for education, tourism, work, residence and entertainment in an atmosphere of exuberance and security.” Fakieh said the city, being at a crossroad between the holy cities of Makkah and Madinah, had a great responsibility toward the Muslim world. “It remains the focal point for pilgrims and visitors to Islam’s two most sacred mosques,” he added. According to the mayor, Jeddah will also become an international commercial center characterized by dynamism and flexibility. “Jeddah has a diversified economic base and deep-rooted trade traditions that will make it a unique international trade and tourist center. The city is determined to achieve and maintain its sustainable development,” he said. Meanwhile, Prince Khaled set up an executive team to implement the Prince Sultan Community Center project in Jeddah. During a meeting with the prince, the company assigned to carry out the project gave its preliminary concept of the center and its contents. Online criminals risk jail sentences, fines Criminals who break Internet laws could face 12-month jail sentences, fines of around SR50,000, or both, said Soroor Mohammad Al-Abdulwahab of the Bureau of Investigation and Public Prosecution (BIPP).


Al-Abdulwahab made the comments while delivering a paper at a three-day conference on combating cybercrime. The event, which is being held at Riyadh’s Al-Faisalia Hotel and which ended on Wednesday, was organized by BIPP in cooperation with Naif Arab University for Security Sciences. Al-Abdulwahab said the above punishments could be increased if the crime is committed by an organized gang, or if a perpetrator abuses his authority or influence in corrupting minors. Al-Abdulwahab also detailed 16 articles of a law created by Royal Decree over two years ago to combat online crime. These articles include the listening or accessing of illegal material by e-mail or via a website, using the net to threaten or blackmail someone, invasion of privacy, defamation, theft, Internet hacking, and distribution of pornography, terrorism-related material and data that could adversely affect the Kingdom’s security or economy. He also said that the authorities need to uphold suspects’ human dignity when arresting them, and not to physically or morally harm them, adding that people arrested should be given the right to contact a lawyer and told why they are being arrested. Meanwhile, Dr. Ibrahim Abdullah Al-Howaimel, deputy president of the Commission for the Promotion of Virtue and the Prevention of Vice, said that, according to the commission’s experience, mixed-working environment is the cause of most cases of women being blackmailed, and that this is one of the negative effects of the Internet. Runar Dominic from the French Ministry of Interior talked about computer- related crimes on the second day of the forum. Dr. Mohamed Abdul Karim Abdullah, an international expert and legal adviser to the United Nations, talked about the use of computers in money laundering. The third session on the second day included a lecture by Patrick Carney, entitled “Information Crimes Worldwide”. Syed Noor Al-Hussein from Pakistan’s Ministry of Defense shed light on “international experience in combating computer-related crimes Swine Flu No swine flu cases found in Jeddah schools No cases of swine flu have been found in any of Jeddah’s schools, said Raja Allah Al-Sulami, spokesman of the province’s Education Department, on Sunday. Al-Sulami made the announcement as all of the Kingdom’s intermediate and secondary boys and girls schools opened on Saturday following a two-week extension of the summer holiday to allow schools to take measures against the pandemic. “There is no truth to reports carried by some Internet sites and via SMS text messages that a pupil at Al-Siddiq Secondary School in Jeddah has got swine flu,” said Al-Sulami. Al-Sulami said that one pupil at the school had a high temperature, but this turned out not to be swine flu when he was examined by the school’s health unit. He added that the pupil was given medicine. Al-Sulami said that doctors have visited all of Jeddah’s schools, including Al-Siddiq Secondary School as a precautionary measure to detect any cases of swine flu. None have been found to exist so far. Dr. Adil Turkistani, director of preventive medicine in Jeddah, said that one or two cases of H1N1 in any school would not be indicative of a spread of the virus. He added that any student found to have swine flu would be sent home to rest for seven days and would not be allowed to return unless all symptoms were clear. Dr. Turkistani said his department has designated all doctors of school health units as well as finalists of medical colleges to deal immediately with


suspected cases of swine flu. He added that all of the 40 health centers in Jeddah city and the 22 other centers in the suburban areas outside the city have been instructed to examine pupils referred to them, and to administer medicine if anyone is found to have swine flu. KAUST Sudais commends opening of KAUST Sheikh Abdul Rahman Al-Sudais, imam of the Grand Mosque in Makkah, on Friday commended the establishment of the King Abdullah University of Science and Technology (KAUST) in Thuwal, 80 km northwest of Jeddah, as a major cultural and historic achievement. “Everyone who loves science and knowledge will support this great qualitative development in (education),” said Al-Sudais while delivering his Friday sermon to thousands of worshippers who thronged the Grand Mosque. Al-Sudais described the international research university as a lofty scientific fort and a giant bastion of scientific knowledge. He said the new university would contribute to restoring the past glory of the Islamic Ummah. Custodian of the Two Holy Mosques King Abdullah established this university with noble intentions, he said, adding that it would bring happiness not only to the king but to the whole Muslim world. “It is the duty of leaders, scholars, writers, media persons and youths to support this great effort and historic achievement,” the imam said and cautioned against those who create doubts about the university and its programs. King Abdullah inaugurated KAUST on Sept. 23, on the Kingdom’s National Day, in the presence of several heads of state, global business leaders, Nobel laureates and celebrated academics. KAUST focused on water desal and reuse research The King Abdullah University of Science and Technology’s (KAUST) Water Desalination and Reuse Center is very much focused on contributing to research and development toward provision of fresh water supplies across the Kingdom. This pledge was made at the three-day Saudi Water and Power Forum (SWPF 2009) which opened at the Jeddah Hilton on Sunday. In fact, the mission of the center is to contribute research and development toward the integrated and sustainable exploitation of impaired-quality sources with a minimization of energy use, chemical use, waste residuals, environmental impact and carbon footprint. This mandate will serve the Kingdom, deprived of sufficient fresh water supplies and already heavily involved in desalination, as well as the proximate region spanning the Gulf, the Middle East, northern and eastern Africa, and South Asia. “The center will help the Kingdom to reach the global forefront of desalination or reuse technology research, development, adaptation and dissemination,” Gary Amy, director of the Water Desalination and Reuse Center and professor of environmental science and engineering at KAUST, said in the opening session of the SWPF 2009. Participating in a discussion on “KAUST: A new partner for research and industrial collaboration in water and membrane technologies,” Amy said constraints of impaired quality sources and corresponding water


treatment challenges ranged from high salinity to organic micropollutants and emerging pathogens (wastewater effluent) to trace metals and anthropogenic chemicals (urban storm water runoff). Drinking water treatment processes potentially targeting these and other contaminants include both separation and transformation processes, with process selectivity being a key attribute. Economic Front SAMA policies help banks weather crisis Despite the global financial crisis, the Kingdom’s banking sector has shown overall resilience, benefiting from the Saudi government’s continued commitment to support the economy through infrastructure projects and planned expansion. The Saudi Arabian Monetary Agency’s (SAMA’s) prudent policies have helped banks weather the crisis, said Faisal H. Alsayrafi, managing director & CEO of the Jeddah-based Financial Transaction House (FTH) in an interview with Arab News. While the Saudi banking sector was able to absorb most of the initial impact of the crisis, the challenge now is how to deal with the second round effects owing to slowing domestic demand, consumer consumption and the effects of the oil prices, Alsayrafi said.

UAE International Front UAE, Russia discuss judicial cooperation The UAE and Russia have concluded the second round of discussions on the judicial cooperation in Abu Dhabi. Abdul Rahman Murad Al Balochi, Director of the Department of International Cooperation at the ministry of Justice, said the talks covered the judicial cooperation, seizure and confiscation of tools used in crimes. He added that the draft of extradition agreement regulates provisions of the judicial cooperation between the two countries. Al Balochi said the talks were good and successful and the draft agreements would help the two countries to combat crime and facilitate exchange of criminals, adding that it has been agreed that talks would continue to reach consensus over remaining issues. Lebanese speaker in UAE amid Shiite expulsion row Lebanese parliament speaker Nabih Berri on Monday began a visit to the United Arab Emirates, which has been accused of expelling Lebanese Shiites thought to have links to Hezbollah. The official WAM news agency reported that Berri met officials in Abu Dhabi, but it did not specify the subject of the talks. In Beirut, parliament spokesman Ali Hamdan told AFP on Thursday that Berri would discuss the deportation of hundreds of Lebanese Shiites in recent months. The Lebanese, who have lived in the UAE for years, were expelled on suspicion of having links with the Shiite militant group Hezbollah, their


representative Hassan Alayan charged last month. The UAE authorities have not commented on the allegations. According to Alayan, the expulsions began after Lebanon’s June 7 parliamentary elections which were won by the Western-backed Saad Hariri camp at the expense of a Hezbollah-led coalition supported by Iran and Syria. Some 100,000 Lebanese currently live in the mainly Sunni Muslim UAE. UAE Foreign Ministry discusses bilateral cooperation with Greece Foreign Minister's Assistant for Political Affairs Dr. Tariq Ahmed Al-Heidan today met H.E. Zois Bionissios, Ambassador of Greece to the UAE. During the meeting, they discussed relations between the two countries and ways of enhancing them especially in the economic and commercial fields. The UAE is one of the main trade partners to Greece in the Middle East. Also discussed were the results of the visit made by HH Sheikh Abdullah bin Zayed Al Nahyan, the UAE Foreign Minister, to Greece in June where he held talks with president of Greece and speaker of the parliament. Social Front UAE does not target any nationality: president The UAE president told Lebanon’s parliament speaker that his country had the right to act against foreigners “violating the law,” in reference to expelled Lebanese Shias, the state Wam news agency said yesterday. In a meeting with Nabih Berri, Sheikh Khalifa bin Zayed al-Nahyan reiterated the commitment of the United Arab Emirates to support Lebanon, Wam reported. “The UAE was exercising its sovereign right in taking decisions it saw as necessary and, in so doing, the country does not target any nationality, religious sect or faction,” he told Berri. “Whatever measures the country took was limited to only those violating the laws of the state,” Sheikh Khalifa said. Nuclear Energy Front UAE Reaffirms Stand on Peaceful Use of Nuclear Technology The UAE recently passed a resolution for the peaceful use of nuclear energy stating that it was an important step to embody a peaceful nature to all aspects of its programme, which will come into commercial operation in 2017, the nation’s Permanent Representative to the UN, Ahmed Al Jarman said at the 64th session of the UN General Assembly, The move is aimed at benefiting from nuclear programme for peaceful purposes, particularly in generating electricity and improving medical and industrial services, he added. Addressing the First Committee on “Disarmament and International Security” he said, “Other positive developments included the joint understanding reached between the Governments of the USA and Russian Federation last July on the Strategic Offensive Reductions Treaty, which was reflected in the two historical addresses given by the American President Barack Obama before this General Assembly and the Security


Council Summit held?few days ago.” He said his country is optimistic about the two initiatives recently announced by President Obama and aimed at holding an international conference next April on securing vulnerable nuclear materials, and its endeavors to reach an agreement with the Russian Federation on reducing nuclear warheads and their launchers at the two countries. “In this context, we reiterate that all these important efforts and endeavours cannot replace the required reductions in nuclear weapons in the two countries in complete transparency and in order to achieve their ultimate goal of total elimination,” he added. “We therefore, call upon all states, particularly nuclear states, to demonstrate the necessary flexibility and political will and abide by the principle of multilateralism in their current negotiations on disarmament and on the work of the 2010 Review Conference on the non-proliferation Treaty, which coincides with the fortieth anniversary of opening the door for the signature of this Treaty,” he said.

KUWAIT International Front Israel's intransigence encourages other nations to follow suit: Kuwait Israel's adamant rejection of joining the Nuclear Non-Proliferation Treaty (NPT) and disallowing international inspection of its nuclear sites entice other nations to stockpile or manufacture these lethal arms, a ranking Kuwaiti representative has affirmed. The head of the permanent Kuwaiti mission at the United Nations, the First Secretary, Salah Hamdan Al-Seif, said in a statement addressed to the arms disarmament and security commission of the UN General Assembly, that despite optimism of the international community, Israel has remained the sole state that adamantly rejects the NPT and international inspection of its nuclear facilities. Israel's intransigence in this respect constitutes a major obstacle in the face of the efforts "to internationalize" the treaty and nudge other nations to produce or possess the nuclear weapons, Al-Seif said. The Israeli unwavering stance is a source of concern because it obstructs the efforts to render the Middle East free of the nuclear arms. As to the Iranian nuclear issue, Al-Seif praised the talks that were held between Iran and the five permanent members of the Security Council in Geneva early this month, affirming that the issue of the Iranian nuclear program should be resolved on the basis of a diplomatic settlement. Kuwait encourages Iran to continue cooperation with the Internatioal Atomic Energy Agency (IAEA) and implement all relevant resolutions for sake of maintaining security and stability of the Arab Gulf region, Al-Seif added. The representative of Kuwait expressed regret that although the 50th anniversary of the adoption of the General Assembly's resolution 1378 that calls for global proliferation of the nuclear arms, "this target has not been attained." He also regreted that nations have been allocating huge budgets for military spending despite a pile-up of crises, namely the financial meltdown. Syrian Vice President expected in Kuwait Monday Syrian Vice President Farouk Al-Sharaa and his accompanying delegation are expected here on Monday on a two-day official visit for talks with the Kuwaiti leadership on means of bolstering bilateral relations and the latest developments in the region. A


Mission of Honor was formed headed by Minister of Communications and State Minister for National Assembly Affairs Dr. Mohammad Al-Busairi to accompany the guest. Kuwait praises rich Bahraini judicial system A Kuwaiti judicial delegation hailed Saturday rich Bahraini judicial experience and the hi-tech used when examining legal cases. Bahrain "achieved a tremendous development though hiring trained Bahraini personnel and the use of hi-tech," Head of Kuwaiti delegation Prosecutor Hamad Al-Muasib told KUNA. The Kuwaiti delegation was briefed on the latest Bahraini regulations concerning judicial system, he said, adding that the team will present a report on the possible implementation of the "positive" regulations taken by Bahrainis and apply them on Kuwait's prosecution system. He thanked Bahraini officials for their hospitality and for facilitating the delegation's visit through briefing them on their judicial experience. This visit falls within the Gulf Cooperation Council (GCC) expertise' exchange program in prosecution and judiciary domains. The delegation met with Bahraini Supreme Judicial Council deputy chief Khalifa bin Rashid Al-Khalifa, Attorney General Ali Al-Boeinein and toured a number of Bahraini law institutions. Along with Al-Muasib, prosecutors Abdulaziz Al-Otaibi and Saleh Al-Rifaei represented the Kuwaiti judicial delegation to Bahrain. Kuwait condemns Israeli "systematic criminal acts" against Palestinians uwait on Sunday condemned the Israeli criminal acts against the Palestinian people in Al-Quds, occupied Jerusalem, on Sunday and called on the international community to live up to its responsibilities and protect the Palestinians. The government of Kuwait "condemns the (Israeli) systematic criminal acts against the Palestinian people" in Al-Quds, Deputy Prime Minister, Foreign Minister and Acting Minister of State for Cabinet Affairs Sheikh Dr. Mohammad Sabah Al-Salem Al-Sabah said in a statement after a cabinet meeting. The cabinet, chaired by His Highness the Prime Minister Sheikh Nasser Mohammad Al-Ahmad Al-Sabah, called on the international community and sponsors of the Middle East peace process to live up to their responsibilities and protect the Palestinian people from the Israeli policies to ultimately achieve just and lasting peace in the region. The Israeli army has been assaulting the Palestinians in the holy city of Jerusalem and banning hem from praying in Al-Aqsa mosque. Political Front Kuwaiti MP seeks to scrap Sharia controls in election law Kuwaiti female lawmaker Rula Dashti on Sunday submitted an amendment to the Gulf state electoral law that aims to scrap a requirement that women must comply with Islamic Sharia law guidelines. The guidelines were introduced four years ago when parliament voted to grant women full political rights but added a precondition that both women voters and candidates must comply with regulations dictated by Sharia law. The law does not explain the nature of


the regulations, but last week the emirate’s Fatwa Department ruled that under Islamic law, it is an obligation for Muslim women to wear the hijab head cover. Although the fatwa, or religious edict, was general in nature and did not specifically refer to Kuwait’s election law, it triggered conflicting reactions from Islamist and liberal lawmakers and activists. Islamist lawmakers called on female MPs and a minister to comply with the ruling while liberal and female legislators stressed the fatwa is not binding since it did not come from the constitutional court. “The fatwa is not binding to the Kuwaiti society. The only reference for us is the constitution,” issued in 1962, she told AFP. Dashti said that including Sharia regulations in the electoral law is a breach of the constitution. “The regulations clearly violate articles in the constitution which call for gendre equality and make no refernce to Sharia regulations,” she said. Four Kuwaiti women made history in May when they won seats in parliament for the first time. Two of the women MPs wear the hijab while Dashti and Aseel Al-Awadhi do not. Education Minister Mudhi al-Hmoud also does not wear the hijab. Social Front Govt discusses implementation of UN anti-corruption treaty The Kuwaiti cabinet discussed measures to implement the UN Anti-Corruption Treaty, including the disclosure of personal financial position of government employees. Cabinet members discussed a draft law that will oblige government employees to disclose their financial positions in order to make Kuwait honor its commitments listed in the UN Anti-Corruption Treaty, Deputy Prime Minister, Foreign Minister and Acting Minister of State for Cabinet Affairs Sheikh Dr Mohammad Sabah Al-Salem Al-Sabah said in a statement after the Cabinet meeting. He said Sheikh Mohammad Abdullah Mubarak Al-Sabah, who heads a team following the implementation of governance and anti-corruption programs in collaboration with the World Bank (WB), briefed the Cabinet on how the UN treaty was important in boosting transparency in government administration. The Cabinet meeting was chaired by His Highness the Prime Minister Sheikh Nasser Mohammad Al-Ahmad Al-Sabah. Sheikh Mohammad Abdullah Al-Sabah explained that the UN Anti-Corruption treaty also called for backing the participation of civil society organizations in addressing all types of corruption. The ministers, said Sheikh Dr Mohammad, also discussed proposals by the team on how to deal with the organization of the exchange of information. The team leader also touched on penalties that will be leveled if classified information is disclosed. The Cabinet then referred the draft law related to the UN Anti-Corruption treaty to the ministerial finance and legal committee. Meanwhile, the Cabinet congratulated US President Barack Obama for receiving the Nobel Prize in recognition of his relentless efforts toward world peace and global cooperation through bolstering diplomacy and world peace. The Cabinet praised the exceptional bilateral relations between Kuwait and the US and said that such a relationship will boost prosperity, peace and world stability.


Later it reviewed a letter received by His Highness the Amir from the President of the Republic of Poland, Lech Kaczynski, which highlighted bilateral relations and an invitation to His Highness the Amir to make an official visit to Poland. The Cabinet welcomed the upcoming visit by the President of the Republic of Georgia, Mikheil Saakashvili, and his accompanying delegation. The Cabinet also welcomed the upcoming visit by Syrian Vice President Farouq Al-Shara and his accompanying delegation. Meanwhile, officials said a new consultation committee was formed at the Ministry of Foreign Affairs that will be assigned to discuss issues pertaining to foreign policy. These issues include the Iraqi debts and border issue, Al-Watan reported.

BAHRAIN Political Front Bahrain Government vows bridges of co-operation The government yesterday vowed to build bridges of co-operation with the National Assembly. The Prime Minister made the pledge as he chaired the weekly Cabinet meeting at Gudaibiya Palace. "The Premier instructed ministers to co-operate fully with the legislative authority," Cabinet Affairs Minister Shaikh Ahmed bin Ateyatala Al Khalifa said. "The vow reflects the government's keenness to consolidate national achievements," he said. Co-operation, the Premier said, is the sole path to meet His Majesty King Hamad's aspirations and people's wishes. The National Assembly was also wished success as it embarked on its fourth legislative session. In another development, the Premier updated the Cabinet on his visit to Paris to address the United Nations Educational, Scientific and Cultural Organisation's (Unesco) annual meeting. He will also hold talks with senior French officials on bilateral co-operation. The Cabinet hailed the growing relations between Bahrain and France, highlighting Unesco's crucial role in building bridges between cultures, preserving national heritage and promoting technologies, sciences and telecommunications in the world. Nuclear Energy Front Bahrain urges steps to solve nuclear crisis Bahrain has urged serious steps to make the Middle East free of nuclear weapons and weapons of mass destruction. The call came as the kingdom's permanent representative to the UN Tawfeeq Ahmed Al Mansoor addressed the First Committee (Disarmament and International Security) in New York. The world is witnessing positive steps towards disarmament and non-proliferation and certain setbacks within national and international systems were not obstacles to the creation of a safer world, he said.


Economic Front Crown Prince hails economic vision Crown Prince and Deputy Supreme Commander Shaikh Salman bin Hamad Al Khalifa ascribed Bahrain's economic success to the goals set by the leadership in attributing the outcome of development to citizens. The leadership of His Majesty King Hamad, combined with the efforts of Prime Minister Shaikh Khalifa bin Salman Al Khalifa, setting growth and advancement of national economy as the main target, are essentials factors of this success, he said. The clear vision, discipline and intellectual advancement that went hand in hand with the vision and strategic plan set by the Kingdom of Bahrain defined the financial and economic policy of the kingdom and protected it from many of the difficulties that faced the region during the global financial crisis, said the Crown Prince. Shaikh Salman was speaking as he met Raja Nazrin Shah, the Crown Prince of the State of Perak, Malaysia and his delegation in the presence of Deputy Prime Minister Shaikh Mohammed bin Mubarak Al Khalifa. The Crown Prince emphasised the importance of the global financial crisis in highlighting the strength of Islamic economic systems, considering that a historical opportunity awaits Bahrain and Malaysia in nurturing it and giving it an international identity making it a key player in global economy.

QATAR International Front Saudi-Qatar committee on borders begins meeting The joint Saudi-Qatari technical committee on land and sea borders began a meeting here Saturday. According to the Saudi Press Agency (SPA), the two sides focused during the committee's seventh meeting on the issues concerning the demarcation of borders between Saudi Arabia and Qatar. The Committee's sixth meeting was held in Doha, Qatar. Qatar, Malaysia hold talks HE the Prime Minister and Foreign Minister Sheikh Hamad bin Jassim bin Jabor al-Thani receiving the visiting Crown Prince of the Malaysian State of Perak Raja Dr Nazrin Shah. They reviewed bilateral relations as well as a number of issues of common concern. The meeting was attended by Director of HE the Premier and Foreign Minister’s Office HE Abdullah bin Eid al-Sulaiti and Acting Director of Asian and African Affairs Department at the Foreign Ministry Ambassador Ibrahim Abdulaziz al-Sahlawi. Qatar Keen on Srengthening NPT The State of Qatar has said it is keen on strengthening the Non-Proliferation Treaty and activating the pillars underlying it, namely non-proliferation, disarmament and peaceful uses of nuclear energy.


It also emphasized the inviolability of the inalienable right of states parties to the treaty to access nuclear technology for peaceful purposes, and that no obstacles should be placed in the way of non-nuclear states parties in their quest to develop nuclear capabilities for peaceful purposes. "We call for resolving the dispute over the Iranian nuclear issue through peaceful means under the Charter of the United Nations and international law," said Mr. Tariq Ali Al-Ansari, Counselor of the Permanent Mission of the State of Qatar to the United Nations. before the 64th session of the first committee of the UN General Assembly at the General debate on all disarmament and international security agenda items. He said the success of the NPT requires the implementation of the resolution on the Middle East adopted by the 1995 conference, and confirmed in the 2000 conference , in order to extend the NPT indefinitely for that resolution was adopted in this framework of a deal that allowed the indefinite extension of the NPT. It is also necessary to to agree on specific, practical steps towards the establishment of the zone free of nuclear weapons in the Middle East and for Israel to accede to the NPT and subject its nuclear facilities to the comprehensive safeguards regime of the International Atomic Energy Agency especially after the adoption at the summit level of the Security Council resolution 1887 2009 , which recalled the decision of the 1995 and 2000 Review Conference. "We in the State of Qatar, announce our full support for the Comprehensive Nuclear-Test Ban Treaty and the early implementation of the Treaty and its effective verification regime, which has proved its success, effectiveness and credibility in monitoring nuclear tests over the past three years. We eagerly look forward to the day what the Treaty will enter into force''''in This regard, the State of Qatar spares no effort to persuade states that have not signed or ratified the Treaty to accede soon". Al Ansari said the state of Qatar hopes that the remaining nine countries of the Group of 44 do so as soon as well, as was called for at the ministerial meeting to facilitate the entry into force of the CTBT as soon as possible which was held in New York on 24 and 25 Sept 2009. Another challenge in the field of disarmament is the proliferation of small arms and light weapons and the failure to revive this problem in a professional manner because a blind eye is turned to the responsibility of countries of origin which export millions of such weapons without restrictions on sufficient control on exports. Another matter of deep concern is the proliferation of landmines and cluster munitions such as those planted by Israel in southern Lebanon and which continue to Kill and maim civilians and there "we have signed the Wellington Declaration on cluster munitions of the Dublin Conference. And we are considering accession to the Convention banking cluster munitions", Al Ansari said. "We share the concern of the international community about the gravity of conventional weapons and their continued development, but dealing with this issue must be equitable and must not target individual countries to expose their defense capability when other countries are developing their arms capabilities , resulting in a catalyst for arms race and a waste of resources at a rates that jeopardize development and environmental standards", Al Ansari said. Amir of Qatar meets with Hamas leader Khaled Meshaal Amir of Qatar Sheikh Hamad bin Khalifa Al-Thani met here Tuesday with the President of the political bureau of Hamas, Khaled Meshaal on the latest Palestinian developments. Qatar news agency said the meeting with the Amir of Qatar came on the occasion of Mishaal's visit to Doha. Today's meeting was attended by President of the Amiri Diwan


Sheikh Abdurrahman bin Saud Al-Thani and secretary of the Amir's office Saad Rumaihi. 'Darfur workshop calls for seizing opportunity' Qatar's Minister of State for Foreign Affairs Ahmad bin Abdullah Al-Mahmoud said on Wednesday that the technical workshop convening here focuses on Darfur's peace effort and the opportunity it provides to boost consensus and intellectual discussion. Al-Mahmoud called, in the final communique at the conclusion of the workshop, on all the relevant parties, especially the parties to the conflict and segments of the Darfur society to seize the window of opportunity available through the Doha peace process in order to reach a consensus to redress the causes of conflicts and achieve a final and comprehensive agreement that realizes reconciliation and development at the socio-economic level in Darfur. The Qatari minister also welcomed the contribution to the proceedings of the workshop by the participating experts and the subsequent recommendations which were primarily based on the real states of affairs on the ground in Darfur. The Qatari minister co-chaired the workshop along with the AU-UN Joint Chief Mediator Djibrill Bassole. Participating in the workshop were experts from the United Nations, African Union, Arab League, Organization of the Islamic Conference and the European Union. Representatives of the five permanent members of the UN Security Council, member states of the Darfur contact group and representatives from community of Sant Egidio in Rome and Centre of Humanitarian Dialogue in Geneva also took part in the workshop. The Minister also announced that due to the convening of the meeting of the African Council of Peace and Security at the summit level in Abuja on 29th of October, which will discuss among the topics on its agenda the issue of peace process in Darfur and also due to the fact that an invitation to attend that meeting is being addressed to the AU-UN Joint Chief Mediator, it has been decided that the commencement of the Doha peace process be postponed to 16 November 2009 instead of 28 October 2009. The Qatari official called on parties to the conflict to take the necessary steps towards rebuilding confidence among them and creating an atmosphere conductive to the achievement of a just and comprehensive solution. Qatar, Turkey discuss bilateral relations HE the Prime Minister and Foreign Minister Sheikh Hamad bin Jassim bin Jabor a-Thani received the Turkish President’s senior adviser and special envoy Ersat Hurmuzlu yesterday. Bilateral relations and issues of mutual concern were reviewed during the meeting. The meeting was attended by HE Director of the Premier and Foreign Minister’s Office Abdullah bin Eid al-Sulaiti.

OMAN Sultan Qaboos among most influential Arab leaders His Majesty Sultan Qaboos bin Said has been ranked among the top 10 of the 500 most influential leaders in the contemporary Arab and Islamic world by a prominent international encyclopaedia.


The World Islamic Encyclopaedia (WIS) described Sultan Qaboos as a leading global personality who followed “a policy of political partnership in his regional and international relations”. WIS compiles the list of renowned figures based on several criteria and after surveying Arab and Islamic personalities for their contributions in the political and economic spheres and in promoting tolerance and dialogue among people belonging to different cultures and thought, encouraging science and technology and adopting sound management and development policies. The encyclopaedia was distributed at an international seminar at the Washington-based Georgetown University this week. A group of international organisations hosted the event to discuss the values of tolerance and dialogue among peoples belonging to various cultures and civilisations. The book underlined Sultan Qaboos’ far-sighted vision in international policy which, it noted, had made the Sultanate a stable ?regional country. It highlighted the Omani ruler’s tolerance towards other religions. International Front Oman, Algeria hold talks On behalf of His Majesty Sultan Qaboos, His Highness Sayyid Fahd bin Mahmood al Said, Deputy Prime Minister for the Council of Ministers, received here yesterday Al Tayeb al Saadi, the Ambassador of Algeria to the Sultanate, who bade him farewell at the end of his tour of duty. HH Sayyid Fahd and the ambassador discussed ways of enhancing bilateral co-operation and reviewed current Arab and global issues. HH Sayyid Fahd expressed the appreciation of the Omani Government for the progress achieved in Oman-Algeria relations and the great attention accorded by their leadership to developing joint co-operation. HH Sayyid Fahd thanked the ambassador for his fruitful efforts during his term of duty. The ambassador expressed his delight over his stay in the Sultanate and gratitude for the assistance he received while carrying out his duty. He also hailed Oman’s comprehensive progress, thanks to the wise vision of His Majesty Sultan Qaboos. Social Front Sultanate renews plea for peace in region The Sultanate yesterday renewed its plea at the UN to make the Middle East free of nuclear and other weapons of mass destruction. “Meeting this objective will assist in creating a positive environment for cooperation, reducing weapons race and establishing trust and peaceful atmosphere, which will reflect positively on global peace,” Mohammed bin Aqail Ba’Omar, Sultanate’s deputy permanent representative to the UN, said during his address before the first committee of the UN General Assembly during its 64th session held here. He said establishing weapons-free zone in the region is important and needs to be supported and achieved. In its speech, the Sultanate has also stressed the legitimate rights of all countries — without exceptions — to use nuclear technologies for peaceful purposes as per the provisions of the treaty and consideration of international criteria and regulations which is supervised


by the IAEA. The Sultanate also welcomed the existing cooperation between the Islamic Republic of Iran and IAEA and the UN security council’s five permanent members plus Germany on the Iranian nuclear file. It called for the necessity to solving this issue through peaceful and diplomatic means. The Sultanate also showed its full commitment to the UN work programme on unlawful trade in small and light weapons for 2001. It hoped that the revising conference on the nuclear proliferation ban treaty for 2010 due to be held in New York during May 2010 will be successful in achieving the already agreed upon objectives and commitments. Nuclear Energy Front Oman supports a nuclear free middle east Oman has reiterated its plea to rid the Middle East of nuclear and other weapons of mass destruction and urged Israel to sign the Non-proliferation Treaty (NPT). It said this would help in creating a positive environment for cooperation among countries of the region, check the arms race and establish trust and a peaceful atmosphere here. “The Sultanate, as it is the case with all Arab countries, renews its call to make the Middle East region free of nuclear and other mass destruction weapons due to its conviction that achieving this goal will create a positive atmosphere for cooperation among countries of the region and limit the armament race,” Mohammed bin Aqail Ba’Omar, Sultanate’s Deputy Permanent Representative to the UN, said. This, in turn, will reflect positively on the whole world, global peace and security, he added. He was addressing a meeting of the 1st Committee of the UN General Assembly, held on the sidelines of the current 64th Session of the Assembly. He said establishing zones free of nuclear weapons and other weapons of mass destruction in the Middle East region was of “great importance and needs to be supported and achieved by the international community.” Ba’Omar called on Israel to join NPT and subject its nuclear facilities to the International Atomic Energy Agency’s monitoring system. mbers plus Germany on Teheran’s nuclear issue.

Report # 90 & 91

BUSINESS AND POLITICS IN THE MUSLIM WORLD GULF COOPERATION COUNCIL

NEWS MONITORING REPORT MADIHA KAUKAB

17th Oct – 30th Oct 2009 PRESENTATION DATE: 4th Nov 2009

Following news monitoring report is based on the important political, social, economic and Geo-strategic events occurred in Gulf Cooperation Council States along with a short summary of the report.

OUTLINE SUMMARY………………………………………………………………….....04


GCC…………………………………………………………………………….07 GCC ministers to discuss regional development bank GCC committed to monetary union GCC railway project to be extended to Yemen: Official GCC countries have come out of slump Half of GCC’s power projects in Saudi Arabia IMF urges GCC to diversify economies GCC seen to spend more than $100b on rail projects GCC refining capacity to up43% by 2015 GCC power grid launched at Riyadh conference GCC urged to support Yemen Kuwait calling for delay in Gulf currency Long road ahead for GCC single currency 'GCC investor confidence high' GCC rail network progressing well: Saudi GCC-EU free trade treaty possible by year-end Slipping stocks, oil price sap sentiment on Gulf markets GCC can get up to $ 1trn in oil surplus Emirates Business 24/7 - 28 October, 2009 SAUDI ARABIA…………………………………………………………………....15 International Front First Saudi relief plane arrives in Niger Saudi FM Meets Belgian Crown Prince Saudi Arabia, Belgium discuss cooperation in carbon field Social Front 10 million festival visitors bring in SR1.2 billion Try imprisonment before sentencing: Saudi Shoura member Nuclear Energy Front Saudi Shoura endorses nuclear safety report Economic Front Saudi Arabia records biggest gain Saudi demand for luxury cars on the rise Saudi stocks uptick to continue Saudi non-oil output to grow 3.6% in 2010 JCCI, Russian Economic Federation sign joint cooperation pact Oil & Gas


Aramco plans to start gas plant Bahrain and Aramco in talks to build pipeline UAE…………………………………………………………………....19 International Front UAE and Palau establish ties UAE wins Unesco body membership UAE establishes diplomatic ties with Haiti Yemen hails directives of UAE President for dispatching relief aid UAE, Syria hold talks UAE, Syria make bilateral headway Swine flu H1N1 influenza under control: Minister Economic Front Gulf stocks drop but UAE benchmarks buck trend UAE economy sound: Suwaidi UAE electronics market poised for boom KUWAIT…………………………………………………………………....22 International Front US Special Representative to Muslim Communities to visit Kuwait Somali president arrives on official visit sign new defense pact Kuwait press crowned freest in the Arab World: Media watchdog Ban urges Iraq, Kuwait to achieve progress Political Front Kuwait court rules, women MPs can shun hijab MP rejects committee's 'Islamist domination' Social Front Day of fines and grilling Kuwait activists divided over single-constituency bill Kuwait eyes mega projects Economic Front


Kuwait, Bahrain bank profits fall Non-oil revenue expected to touch KD 4 million BAHRAIN…………………………………………………………………....27 International Front Bahrain votes to end contacts with Israel Bahrain MPs vote to ban all contact with Israel Social Front Education right of every citizen Economic Front Bahrain’s positive growth is praised Finance ministers to probe crisis impact Bahrain and US vow to meet free trade target Kingdom's economic strides praised Energy Front Energy projects top $690 billion Energy sector challenges to be analysed Oil and Gas Mideast oil and gas ICT summit on way QATAR…………………………………………………………………....30 Qatari PM meets British parliamentarian Qatari PM holds talks with Croatian foreign minister Qatar Emir, Bangladesh PM hold talks Qatar criticizes Israel Qatar Emir meets king of Saudi Arabia Oil & Gas Qatar enjoys ‘tremendous flexibility’ in gas supplies Qatar diverts LNG to China from US OMAN…………………………………………………………………....32


International Front Alawi confers with Carter, receives Croatian FM Oman, Saudi border officials hold talks Oman, Saudi Arabia sign border document Qaboos directs despatch of aid to Yemen

SUMMARY To further boost up the regional integration Gulf States have agreed in principal to

extend their multi-billion dollar railway project to Yemen, their poorer neighbour on the Arabian peninsula, a United Arab Emirates official said.

On International Front, Saudi Arabia plans to inject carbon dioxide into the world’s biggest oil field by 2013 to trap climate-warming gas and improve oil production, has discussed plans with Belgium to cooperate in the field of carbon capture and storage (CCS).The plans will help to undertake joint research projects, disseminate and exchange up-to-date information, and evaluate where Riyadh and Brussels stand in terms of CCS research and development. Cooperation in the field of CCS was one of the major topics discussed with senior Saudi officials during Sunday’s meetings. Meanwhile in implementation of the directives of the Custodian of the Two Holy Mosques King Abdullah to provide humanitarian aid to Niger to alleviate the suffering of the people affected by the torrential rains that fell on the city of Agadez causing enormous flooding, the first Saudi relief plane arrived in Niamey Airport in Niger.

The UAE has established a diplomatic ties with Haiti, a joint statement signed here last night formally establishes diplomatic relations at ambassadorial level. Meanwhile Yemen has lauded the instructions of President His Highness Sheikh Khalifa bin Zayed Al Nahyan, on dispatching urgent relief aid to those affected in the recent incidents in the northern Yemeni provinces. It reiterated that the move further boosts humanitarian initiatives of Sheikh Khalifa towards the Yemeni people, adding that such stances ease lives of the needy people.

On the other side Syrian people and Government show their full support to the right of the UAE to sovereignty on the three Islands - Abu Musa, Greater Tunb and Lesser Tunb - occupied by Iran since the year 197, according to the speaker of the Syrian parliament on his visit to UAE.

Kuwait's First Deputy Prime Minister and Minister of Defense Sheikh Jaber Al-Mubarak Al-Hamad Al-Sabah wrapped up an official visit to France during which he signed a new defense pact, described as "complimentary and in activation" of the 1992 treaty. The new agreement was signed by Sheikh Jaber and his French counterpart, Herve Morin. The Kuwaiti official had stated that the renewed pact is flexible for the political leadership and the armed forces regarding the strategic exchange.

Bahrain’s Parliament on Tuesday approved legislation penalising contacts with Israel. “Whoever holds any communication or official talks with Israeli officials or travels to Israel will face a fine ... and/or a jail sentence of three to five years.

Qatar has strongly condemned the storming of the Al Aqsa Mosque by Israeli occupation forces and the use of force and violence against worshippers. An official source at the Foreign Ministry told QNA that the attacks were in violation of international conventions and a breach of international and humanitarian law and an attempt by Israel


to drag the region into a spiral of violence to implement its plans to eliminate any chance of achieving peace in the region

Oman’ s Sultan Qaboos bin Said has issued Royal Directives for sending immediate relief to those displaced in the governorate of Sa’dah in the Yemeni Republic.

On political front, Kuwait's constitutional court rejected a petition brought by

four voters to declare invalid the election of two women MPs because they refuse to wear the hijab headscarf. The decision of the court, whose rulings are final, was announced to reporters by the chairman of the court, Yussef Ghanam Al Rashid. Two of the four women who became Kuwait’s first female MPs in May refuse to wear the hijab, which has also been spurned by the only woman appointed as a minister in the Kuwaiti government following the May election. On Social Front, in Saudi Arabia, an advisor to the Royal Council who is a prominent Islamic scholar has launched an outspoken attack on judges for handing out excessive prison and lashing sentences. Sheikh Abdul Muhsin Al-Obaikan, who is also a member of the Shoura Council, said there was no Islamic justification for such excessive sentences. It had been proved, he claimed, that the Prophet (peace be upon him) had issued no more than 100 lashes for an offence. He jokingly said judges would not be able to handle a 10-year prison sentence, let alone be on the receiving end of a whip.

On Economic Front, Crude refining capacity of the six Gulf Cooperation Council (GCC) countries will rise by 43 percent to 5.2 million barrels per day (bpd) by 2015. This will represent 5.2 percent of the world’s total capacity compared with 4.2 percent now, the ratings agency said. Refining capacity expansion plans are part of government efforts in the region to boost output of value-added products on the back of their huge crude production.

GCC Investor Sentiment Report, the only report of its kind for the Gulf markets, described the situation that the GCC Real Estate, Construction & Materials sector improved dramatically, turning positive for the first time since April 2009 after a significant jump from -13.7 per cent to 13.7 per cent of balance1 of investors expecting a rise in profitability . "The continued improvement in the GCC Investor Confidence Index was largely driven once again by the positive movement in the balance of investors' perceptions of current regional economic conditions. According to a top GCC official, the much-delayed free trade agreement between the Gulf Cooperation Council and the European Union could be signed by the end of the year or early next year, as both the economic blocs have sorted out almost 90 per cent of contentious issues relating to trade and economics. Slipping global stocks and a fall in the oil price reduced investor sentiment across Gulf Arab markets yesterday, leading to declines on most regional bourses. A decline was triggered by market retreat in the United States on Monday as well as three days if falls in oil prices. In the United Arab Emirates, Dubai’s index ended 0.8 percent lower after seeing its largest one-day increase in four weeks on Monday. National Bank of Abu Dhabi also reported quarterly results towards the end of the session. Trading on the stock was halted ahead of the results. Abu Dhabi’s largest lender reported a jump of 41 percent in quarterly profit, just short of analysts’ average expectations. The Saudi measure,


which is more correlated to oil prices, slid 0.5 percent to 6,533 points, with most major stocks witnessing selling pressure. Samba Financial Group, the second largest listed Saudi bank, retreated 3.5 percent. “The Saudi market is more correlated to global oil prices,” says Moussa Haddad, head of Middle East equity trading desk at NBAD. “There is no major news that is driving the market down today. It is close to the end of the month when some investors start closing positions, nothing significant in that.” Indices in Oman, Bahrain and Qatar all slipped as a cautious attitude curbed investor enthusiasm. Although third-quarter earnings from Oman Cement Co beat expectations, market sentiment remained subdued. “At the current time, traders are still very cautious of global and regional markets,” said Adel Nasr at United Securities. Only Kuwait’s benchmark managed to end slightly higher, with investors picking up banking stock which were unceremoniously dumped in Monday’s session. National Bank of Kuwait rose 1.6 percent after its quarterly earnings beat forecasts. Kuwait Finance House climbed 1.6 percent after its chief executive said provisions, which stood at $ 1.6bn, were declining. Meanwhile to recent industry reports show that the ongoing power projects in the GCC have been estimated to be worth up to SR607.5 billion, with Saudi Arabia accounting for around 50 percent of the total investments. On the other side it is observed by Abdullah Saleh Al-Shamashy, executive director of Exotic Cars Exhibition at the Fours Season Hotel in Riyadh, that the demand for luxury cars has been increasing in the Kingdom despite the world economic crisis.

Current situation of the UAE economy is much better than that of last year according to the International Monetary Fund (IMF), Governor of UAE Central Bank Sultan Bin Nasser Al Suwaidi said on Sunday. "The IMF predicts the UAE economy is nearing the point of balance and this positive result is attributed to China's allocation of $580 billion to development which pushed average oil prices to $ 65 per barrel in 2009,'' Al Suweidi said during a joint meeting with the Federation of Chambers of Commerce and Industry (FCCI) and business community. On Oil & Gas front, Bahrain is now in talks with oil giant Saudi Aramco over plans to move ahead with constructing a new pipeline between the two countries.

China has shown keen interest in getting liquefied natural gas (LNG) supplies from Qatar, Deputy Premier and Minister of Energy and Industry H E Abdullah bin Hamad Al Attiyah told a news conference. Qatar has diverted 5 million tonnes per year of LNG to China which was previously intended for the United States, said Al Attiyah. “China has shown keen interest in getting our LNG and we have the right to divert our gas to a better market. I am a big believer in China market,” he said after the inauguration of RasGas Train 6 here. China received its first LNG cargo of 216,000 tonnes from Qatargas last week. The LNG shipment was the first of the 25 year supply agreement between China and Qatar. He said Qatar would not hesitate to divert its LNG cargoes to other markets if it gets better market conditions and lucrative price rather than dump its gas to the United States.

DETAILED REPORT

GCC


GCC ministers to discuss regional development bank Finance ministers of the six nations that form the Gulf Cooperation Council (GCC) will discuss a proposal for a regional development bank similar to Europe’s, the top GCC official said yesterday. Finance ministers and central bank governors from the GCC states are meeting in Muscat to set the agenda for the rulers’ summit in Kuwait next month. “They will discuss the Qatar vision of a mechanism for the proposal for an investment and development bank like you have in the EU,” GCC Secretary General H E Abdulrahman Al Attiyah told reporters. The bank would provide funding for regional projects and would also make donations outside of the GCC, Attiyah said. GCC committed to monetary union Gulf finance ministers and central bank governors yesterday reiterated their commitment to a monetary union and a single currency which four states plan to launch next year. The top officials from Bahrain, Kuwait, Qatar and Saudi Arabia meeting in Muscat called on the United Arab Emirates and Oman, which have previously withdrawn from the plan, to rejoin. “Once the countries that are members agree, we will work on setting up the Gulf central bank and launch the project of the common currency,” the Gulf Cooperation Council (GCC) said after the meeting. “The GCC countries have asked those who have not ratified the single currency to do so by the end of the year,” said Darwish Ismail Al Balushi, secretary general in Oman’s finance ministry. Finance ministers and central bank governors from six Gulf Arab states are meeting in the Omani capital to set the agenda for a rulers’ summit in Kuwait later this year. The head of the IMF also attended the meeting yesterday. Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE agreed at a summit in 2001 to set 2010 as the target to launch the monetary union and single currency. Bahrain, Kuwait, Qatar and Saudi Arabia signed a pact in June to create a joint monetary union council and launch the monetary union and single currency. The Emirates was irked at the choice of the Saudi capital Riyadh to host the future GCC central bank, while Oman withdrew from the monetary union saying it was not ready to meet the preconditions. The policy makers also said now is not the time for Gulf states to mop up the huge stimulus pumped in after the global financial crisis. When asked if Gulf states should begin easing back the throttle, Saudi Arabian Monetary Authority Governor Muhammad Al Jasser told reporters: “Not yet. Not necessarily. GCC railway project to be extended to Yemen: Official Gulf states have agreed in principal to extend their multi-billion dollar railway project to Yemen, their poorer neighbour on the Arabian peninsula, a United Arab Emirates official said yesterday. The six countries in the Gulf Cooperation Council (GCC) - a loose economic bloc that comprises Saudi Arabia, the UAE, Kuwait, Qatar, Oman and Bahrain - are spending more than $100bn on various rail projects to ease congestion in the face of poor public transport networks and a growing population. The Gulf Arab rail network alone will cost $20-$25bn as the six oil producers seek to create a similar model to Europe’s high speed rail system. The 1,940km railway would connect the six Gulf states, each of which would contribute a share of the start-up capital. Yemen had asked for the railway be extended


over its border with Oman. “The GCC has accepted in principle to extend the railway link to Yemen from Oman,” said the official, who was attending a meeting of Gulf policymakers in Oman. GCC countries have come out of slump Gulf finance ministers have said the region has emerged from recession, but suggest that fiscal stimulus programmes must not yet be cut. Finance ministers and central bank governors from all six GCC states also urged those who have yet to ratify an agreement on monetary union to do so by year end. The meeting held here yesterday was meant to set the agenda for a rulers’ summit in Kuwait later this year and comes as the region’s economies show signs of bouncing back from the crisis, helped by rising oil prices. When asked if Gulf States should begin easing back the throttle on government spending, Saudi Arabian Monetary Authority Governor Muhammad Al Jasser told reporters: “Not yet. Not necessarily.” “The pulling out depends on the pace of the recovery in each country and the pace is not the same in all countries,” he added. “So the pulling out of the stimulus has to be synchronized with the recovery pace in each country.” Jasser also said Saudi Arabia’s economy was recovering. “Our stimulus is mostly for oil production capacity enhancement and also large development projects we’re implementing. When these projects are finished, then we will reassess the need for additional spending,” Arabian Business Web site reported. IMF urges GCC to diversify economies Gulf Arab countries need to diversify their economies and financial sectors, IMF chief Dominique Strauss-Kahn said on Saturday. Gulf countries were not immune from the consequences of the financial crisis but have tackled it from “a position of strength,” the International Monetary Fund managing director told Gulf states ministers at a meeting in Muscat. “The authorities should be commended for cushioning the impact of the crisis through strong countercyclical fiscal policy, which helped sustain growth in their own economies and had positive spillovers for neighboring countries as well as contributing to global demand during the downturn,” he said. But Strauus-Kahn added: “There is a need to continue to diversify the financial sector, and more broadly the economy. Doing so would reduce both volatility in economic activity and financing costs for private investment, which is key to providing jobs for a growing labour force.” He said the IMF has been closely cooperating with Gulf countries and is ready to support their efforts toward economic integration and monetary union. GCC seen to spend more than $100b on rail projects Over the past few years the world has looked on in amazement as the unprecedented amount of investment in rail projects continues to grow at astonishing rates in the Middle East. Owing to the boom in population and increased traffic on the roads, governments are recognizing the need for quality rail infrastructure as a means to stimulate and sustain the economy. It is approximated that the Gulf states will spend more than $100 billion on rail projects in the coming years.


GCC refining capacity to up43% by 2015 Crude refining capacity of the six Gulf Cooperation Council (GCC) countries will rise by 43 percent to 5.2 million barrels per day (bpd) by 2015, ratings agency Moody’s said on Monday in an analysis of the region’s energy sector. This will represent 5.2 percent of the world’s total capacity compared with 4.2 percent now, the ratings agency said. Refining capacity expansion plans are part of government efforts in the region to boost output of value-added products on the back of their huge crude production. GCC power grid launched at Riyadh conference A 400-kv GCC Interconnector Grid commissioned during the summer was launched at the GCC Power 2009 Conference and Exhibition inaugurated Monday at the Marriott Hotel here by Dr. Salih Bin Hussain Al-Awaji, Deputy Minister of Water and Electricity. The move to launch the interconnector grid affirmed the close collaboration among GCC countries on addressing important power challenges, such as supply, security and reliability in the power sector, according to a press release issued on the occasion. Over 500 delegates from the six-state GCC are participating in the conference in order to explore opportunities in the $162 billion GCC power sector. GCC urged to support Yemen Saudi Deputy Interior Minister Prince Ahmed on Tuesday called upon GCC countries to provide all-out support to Yemen — which is facing an armed insurgency from Houtians in the north — in order to strengthen the Arab country’s security and create stability. Addressing a meeting of GCC interior ministers in the Omani capital, Prince Ahmed also called for non-interference in Yemen’s affairs by outside forces. “Establishing excellent security relations among countries of the region including Iran demands mutual respect and cooperation and non-interference in internal matters,” he said. Prince Ahmed also spoke about major security challenges facing the region, more importantly terrorism, which threatens the achievements of countries in the region. Kuwait calling for delay in Gulf currency Kuwait, one of four Gulf states to sign a pact to launch a monetary union and single currency, yesterday called for a delay in the 2010 launch date, citing incomplete preparations. “The ministry of finance calls for revising the target date for launching the Gulf single currency until all committees and concerned parties have completed technical issues,” the ministry said in a statement cited by the Kuna news agency. The ministry, however, still expressed the support of the state of Kuwait for the project. Long road ahead for GCC single currency Opinion Arab News - 28 October, 2009 Author: John Sfakianakis


At a regional finance ministers and central bank governors meeting over the weekend, officials revealed plans to establish a monetary council by January that would serve as a transition body for the GCC Central Bank in expectation of the single Gulf currency. They indicated the four states involved in the project were under pressure to ratify a monetary union agreement before an annual summit of Gulf Arab leaders in December. While the comments come as a show of support for the beleaguered project to create a European Union-style single currency, in our view momentum behind the project is still weak and we believe it could take four to five years before a single currency comes into circulation. We regard divergence of views among GCC, or Gulf Cooperation Council, states as a key factor holding back currency union. Institutional capacity building is also a prerequisite which needs to be addressed. Building the institutions Saudi Arabia was the first GCC state to ratify the monetary union deal while the other three states – Kuwait, Qatar and Bahrain – are likely to do so in the coming months. This is likely to happen prior to the annual summit of Gulf heads of state in December. Once the ratification process is complete, the four countries will establish a monetary council that would act much like the European Monetary Institute (EMI) that preceded the European Central Bank (ECB). The purpose of the EMI was to encourage cooperation between the national banks of EU member states. Upon creation of the ECB, the EMI was dissolved – similar to the process envisioned by the GCC. The Gulf monetary council would be governed by a board of directors comprising the central bank governors of member states and would be charged with developing a new timetable for issuing a single currency. It is also likely to appoint an independent executive director to help guide the project. The candidates for this role and their respective nationalities will provide insight into the backstage politics that characterise the GCC. Having the monetary council in place will be pivotal in pushing forward currency union. The body would hold meetings more frequently to streamline decision-making, although questions remain about how much monetary policy-setting powers the council would have. We view this as an important issue that demands further clarification. According to some indications, only the fully fledged Gulf central bank would be able to make decisions on monetary policy. Obstacles remain, but much has been done A lot of work remains before a Gulf monetary union can reach fruition, especially following its shaky history. In 2001, the six member states of the GCC, which also includes the United Arab Emirates and Oman, agreed to set up a monetary union like that of the European Union. According to the plan, the Gulf currency would be issued on January 1, 2010. But the project was fraught with delays and eventually Oman dropped out of the plan in 2006. In March, the GCC abandoned an initial 2010 deadline for issuing common notes and coins. It said a monetary council would determine a new timetable for the issuance. The UAE, the region's second-largest economy, then dealt the biggest blow to the project to date when it withdrew from the plan in May in protest of


the decision to base the regional central bank in Riyadh rather than Abu Dhabi. Without the UAE, Saudi Arabia's economy accounts for 63% of the currency union area, up from 47% prior to the UAE pullout. We think that for any union to be established, compromise is the name of the game. Still, Saudi Arabia’s role at this juncture is instrumental in driving the project forward. It is natural for Saudi Arabia to lead the process, due to its sheer economic presence, accounting for 44% of overall Gulf GDP in 2008 and 63% of the total population, according to official 2007 data. Saudi Arabia has deep institutional memory, experience and technical know-how to support the project, but losing key member states could weaken any union that does emerge. The remaining countries have rallied their support behind the plan since the UAE pullout and we believe that, at least for the medium- term, political support to push ahead remains strong. We also continue to think that the UAE’s participation in the future is plausible. Steps toward regional integration A single currency is expected to encourage further trade and financial integration, facilitate foreign direct investment, and foster the development of the GCC into an optimum currency area ex post even if the GCC grouping may not constitute one ex ante. GCC countries have achieved virtually unrestricted intraregional mobility of goods, national labor and capital. Prudential regulations and supervision of the banking sector are being gradually harmonized. Intra-GCC imports have more than tripled in size over the past 15 years, although their share in the overall imports remained steady and low at less than 9%. One could argue that GCC states have already fulfilled many of the preconditions for a currency union: they are mainly oil exporters (with the exception of Bahrain); are very open to trade and imported labor; have flexible labor markets in which even nominal wages can adjust; and have complete factor mobility within the GCC. Furthermore, they all have full convertibility. But a great deal of work remains to prepare for the common currency and the creation of a common, independent central bank. Monetary policy frameworks, payment and settlement systems, regulatory and supervisory structures, macroeconomic statistics, and other specific central bank functions have yet to be fully harmonized. Furthermore, Gulf countries have yet to agree on the management of reserves and non-reserve assets, and on the fiscal side, setting up a common accounting framework and adequate budgetary procedures would be a high priority in the period leading up to the currency's introduction. Complete implementation of the Gulf common market, meanwhile, is crucial. The common market – which includes freedom of movement in labor, capital and goods and services – requires the adoption of a series of national laws. Toward this end, the GCC Secretariat, based in Riyadh, has developed dispute resolution mechanisms, including a common market committee, a ministerial level committee, and an arbitration center in Bahrain, and plans are underway to create a supranational court. Keeping currency union on track To keep the currency project on track, we believe the monetary council should push to launch the accounting unit of the single currency by the end of next year. This essentially


means that the bloc would determine the individual exchange rate parities of each Gulf currency, marking the launch of an electronic currency much like the European Currency Unit which preceded the euro. In our view, once the accounting unit is unveiled it will become less likely that another state – particularly Qatar – would pull out of the project. Between the end of 2010 and 2014-2015, the monetary council and central bank could then arrange for the design and distribution of the common notes and coins. Chairing the monetary council next year will be the Kuwaiti central bank governor, who has defended his own country's decision sever its dinar's peg to the US dollar in favor of a basket of currencies comprised mainly of dollars. The region's other oil exporters maintain currency pegs to the dollar. In our view, the region is unlikely to move away from the dollar in the short and medium term. The single Gulf currency, meanwhile, is likely to remain pegged to the dollar in the beginning. The region is known more for its patience and long-term view than the simple vagaries of currency fluctuation. The dollar peg has provided a credible anchor for monetary policy, is easy to administer and has simplified trade and financial transactions. Pegged exchange rate regimes are also preferred by major oil exporters. Of the 26 countries for whom the oil sector accounts for more than 50% of total exports, 18 maintain conventional fixed currency pegs. Gulf dollar pegs came under scrutiny in 2007 and 2008 because the regional economic boom was out of sync with the economic trends in the United States, where the Federal Reserve started slashing interest rates in September 2007, compelling the GCC to follow suit despite escalating inflation. The pegs thus hampered the ability to the region's central banks to set appropriate monetary policy. Depending on where the GCC and US economic cycles stand at the time of union, the Gulf could opt for one of four different exchange rate mechanisms: pegging the single currency to a currency basket, the IMF's Special Drawing Rights or the export price of oil. Alternatively, the Gulf could choose to adopt a managed flotation or a free float. In deciding a long-term currency policy for the Gulf currency, the Gulf central bank would need to consider the importance of the oil sector, exports and government revenues. Any currency policy should also take into account the non-oil private sector – a stronger currency would make exports less competitive but lower the cost of imports. Striking the right balance will be crucial for the region's competitiveness. Yemen on the agenda Plans to include Yemen in GCC integration plans appear to be gaining momentum. Gulf policymakers are discussing extending a GCC high-speed railway network, estimated to cost around $ 23 billion, to Yemen through its border with Oman. The rail network – among plans for $ 100 billion worth of rail projects in the Gulf – will span 1,940km, with each GCC state contributing a share to its start-up capital. Yemen’s political and economic stability is of crucial strategic importance to all the GCC states, and how the bloc deals with the country represents and test case for the region’s economic and political resolve. Yemen is facing insurgency in the north where Zaidi Shiite Muslims took up arms against the government in 2004, as well as frequent clashes with separatists in the south. In our view, GCC states, in particular Saudi Arabia, remain committed to support Yemen economically at this stage to ensure unity and stability of the country.


— Dr. John Sfakianakis is the chief economist at Banque Saudi Fransi 'GCC investor confidence high' Shuaa Capital, the region's leading financial services institution, on Monday issued its October GCC Investor Sentiment Report, the only report of its kind for the Gulf markets. Commenting on the Index findings Oliver Schutzmann, Chief Communications Officer of Shuaa Capital and author of the Investor Sentiment Report, said: "It is very encouraging to see the GCC Index on the rise for the third month running, and not far off its peak of 133.5 in June. The GCC Real Estate, Construction & Materials sector improved dramatically, turning positive for the first time since April 2009 after a significant jump from -13.7 per cent to 13.7 per cent of balance1 of investors expecting a rise in profitability . "The continued improvement in the GCC Investor Confidence Index was largely driven once again by the positive movement in the balance of investors' perceptions of current regional economic conditions. In October this figure moved to 27.5 per cent from 15.7 per cent last month and a significant improvement on July's recording of -15.0 per cent in July." "The UAE Index fared particularly well this month after it jumped 9.2 per cent to 130.4. The UAE has improved consistently in the Survey's seven month history. Driving the UAE's gain was investors' opinion of the current state of its economy, which rose by a massive 31.4per cent on balance to 21.6 per cent. GCC rail network progressing well: Saudi Preparations to implement the proposed railway network linking all the GCC countries have been progressing well, Abdul Aziz Al Ohaly, Deputy Minister of Transport of Saudi Arabia said yesterday. Al Ohaly was in Doha to attend the UITP MENA Congress and Showcase which concluded at Grand Hyatt Hotel yesterday. “Feasibility study on the railway project has already been completed. A meeting of the GCC Transport ministers in Muscat recently had assigned a panel to conduct detailed studies on the project. This shows that the project is still alive and is in progress,” Al Ohaly told this newspaper. He, however, said it was too early to say when construction of the railway lines would actually begin and how long it would take to complete the project. He said Saudi Arabia had been investing heavily on developing its public transport system. “Only three per cent of our population are using public transport, despite all the developments in this sector. Ours is a scattered country, geographically and this is the main challenge we are facing in this field,” said the minister. Al Ohaly, who is also chairman of the UITP Middle East and North Africa Division said the Doha conference was a success in terms of participation as well as the issues discussed. GCC-EU free trade treaty possible by year-end The much-delayed free trade agreement between the Gulf Cooperation Council and the European Union could be signed by the end of the year or early next year, as both the economic blocs have sorted out almost 90 per cent of contentious issues relating to trade and economics, a top GCC official said.


The negotiations for a free trade hit snags, last year when the European Union insisted on the politico-economic conditions, including full ownership of property and businesses foreigners, besides other matters of political significance. Mohammed A. Al-Haif, Director of the Customs Union Department at the office of Secretary General of the Arab Gulf Cooperation Council, or AGCC, in an interview with Khaleej Times said that the issue of export duties would also feature prominently in the next round of talks. He did not say when the next round of talks were likely. Al Haif said that the Finance Minsters from the GCC bloc would meet in Doha next week to prepare the agenda for the GCC Summit, which would take place in Kuwait in January next, to review among other matters, the progress made by the GCC customs Union, which was formed in 2002. Arabian Gulf leaders are eager to remove barriers to the free float of goods to boost the trade and commerce, he said. The GCC Heads of state would also decide on the removal of all custom check posts from the seven member nations, to allow custom duty free movement of goods between the member states, without producing any documents on the borders, he said. This year, the bloc has successfully added more than 125 items to its list now seen at 959 -items that can be imported across GCC without paying any customs duty lifting significantly the trade exchanges. The new items added recently to the list include computers, mobile phones, books and newspapers, foodstuff and tens of other articles commonly traded. On the delay in the introduction of the Value Added Tax, Al Haif said that some members have presented fresh proposals on the new tax regime, which would replace the five per cent customs duties currently imposed on imports across the region. Slipping stocks, oil price sap sentiment on Gulf markets Slipping global stocks and a fall in the oil price reduced investor sentiment across Gulf Arab markets yesterday, leading to declines on most regional bourses. A decline was triggered by market retreat in the United States on Monday as well as three days if falls in oil prices. In the United Arab Emirates, Dubai’s index ended 0.8 percent lower after seeing its largest one-day increase in four weeks on Monday. National Bank of Abu Dhabi also reported quarterly results towards the end of the session. Trading on the stock was halted ahead of the results. Abu Dhabi’s largest lender reported a jump of 41 percent in quarterly profit, just short of analysts’ average expectations. The Saudi measure, which is more correlated to oil prices, slid 0.5 percent to 6,533 points, with most major stocks witnessing selling pressure. Samba Financial Group, the second largest listed Saudi bank, retreated 3.5 percent. “The Saudi market is more correlated to global oil prices,” says Moussa Haddad, head of Middle East equity trading desk at NBAD. “There is no major news that is driving the market down today. It is close to the end of the month when some investors start closing positions, nothing significant in that.” Indices in Oman, Bahrain and Qatar all slipped as a cautious attitude curbed investor enthusiasm. Although third-quarter earnings from Oman Cement Co beat expectations, market sentiment remained subdued. “At the current time, traders are still very cautious of global and regional markets,” said Adel Nasr at United Securities. Only Kuwait’s


benchmark managed to end slightly higher, with investors picking up banking stock which were unceremoniously dumped in Monday’s session. National Bank of Kuwait rose 1.6 percent after its quarterly earnings beat forecasts. Kuwait Finance House climbed 1.6 percent after its chief executive said provisions, which stood at $ 1.6bn, were declining. HIGHLIGHTS: DUBAI: The index retreated to 2,319 points. ABU DHABI: The index slipped to 3,145 points. SAUDI ARABIA: The measure fell to 6,533 points. OMAN: Muscat’s benchmark retreated 0.5 percent to 6,490 points. QATAR: The index slipped 0.3 percent to 7,315 points. BAHRAIN: The index declined to 1,539 points. KUWAIT: The measure climbed 0.3 percent to 7,476 points. GCC can get up to $ 1trn in oil surplus Emirates Business 24/7 - 28 October, 2009 The six-nation block of GCC is slated to accumulate $ 600bn (Dh2.2 trillion) to $ 1trn oil surplus in the next five years, said the regional head of International Monetary Forum (IMF) yesterday. Dr Masood Ahmed, IMF's Director for Middle East and Central Asia Department, said surplus revenues this year may have dipped to $ 50bn due to low oil prices and export volume but they will begin to grow again starting next year. "Oil surplus this year is $ 50bn, next year it will be $ 150bn and is set to be $ 600bn to $ 1trn in the next five years. During these years the GCC should begin to save again for the next rainy days." Due to the deleveraging process of almost every economy, fiscal revenues from exports fell to $ 350bn this year from $ 570bn in 2008, said Ahmed, who was speaking at Dubai Economic Forum. "Subprime has not been much of the problem here but the Gulf has not been immune to global deleveraging process," he said. "This can be reflected in the unprecedented increase in the CDS spreads in this first quarter of 2009.

SAUDI ARABIA International Front First Saudi relief plane arrives in Niger In implementation of the directives of the Custodian of the Two Holy Mosques King Abdullah to provide humanitarian aid to Niger to alleviate the suffering of the people affected by the torrential rains that fell on the city of Agadez causing enormous flooding, the first Saudi relief plane arrived in Niamey Airport in Niger on Tuesday. The plane carried 114 tons of blankets, foodstuffs and medical supplies. The Saudi Ambassador to Niger Ibrahim bin Ali Abdulhaq who received the plane said that Saudi Arabia under the leadership of the King of Humanity, the Custodian of the Two Holy Mosques King Abdullah, has been in the forefront of assisting people in need all over the world. He


noted that Niger had already received 198 tons of dates provided by the King as a gift to the people of that country. Saudi FM Meets Belgian Crown Prince Saudi Foreign Minister Prince Saud al Faisal met here Sunday with Crown Prince Philippe of Belgium , who is currently visiting Riyadh. Talks during the meeting dealt with issues of common interest between the two countries. The Custodian of the Two Holy Mosques King Abdullah bin Abdulaziz of Saudi Arabia met last night with Belgian Crown Prince and discussed with him prospects of cooperation between the two countries and ways of enhancing them in various fields. Saudi Arabia, Belgium discuss cooperation in carbon field Saudi Arabia, which plans to inject carbon dioxide into the world’s biggest oil field by 2013 to trap climate-warming gas and improve oil production, has discussed plans with Belgium to cooperate in the field of carbon capture and storage (CCS). The plans will help to undertake joint research projects, disseminate and exchange up-to-date information, and evaluate where Riyadh and Brussels stand in terms of CCS research and development. “Cooperation in the field of CCS was one of the major topics discussed with senior Saudi officials during Sunday’s meetings,” said Bart Ouvry, a spokesman for the Belgian Ministry of Foreign Affairs, here on Sunday. Ouvry was referring to talks held on Saturday between Foreign Minister Prince Saud Al-Faisal and Belgian Foreign Minister Yves Leterme. Referring to the talks with Prince Saud, the Belgian spokesman said that “two important subjects — the Middle East peace process and Afghanistan were discussed besides several other issues of common concerns.” Social Front 10 million festival visitors bring in SR1.2 billion A Saudi Commission for Tourism and Antiquities (SCTA) report has revealed that the Kingdom’s summer festivals attracted 10.3 million visitors who spent SR1.2 billion. The SCTA’s Tourism Information and Research Center, which produced the report, said that surveys were conducted on 13 festivals in Jeddah, Riyadh, the Eastern Province, Hail, Taif, Madina, Najran, Al-Baha, Bureida, Unaiza, Al-Jouf and Al-Ahsa. Most visitors, the report said, came with families, although the number of visitors coming alone or with friends was higher by 45 and 33 percent in Najran and Riyadh, respectively. Try imprisonment before sentencing: Saudi Shoura member An advisor to the Royal Council who is a prominent Islamic scholar has launched an outspoken attack on judges for handing out excessive prison and lashing sentences. Sheikh Abdul Muhsin Al-Obaikan, who is also a member of the Shoura Council, said there was no Islamic justification for such excessive sentences. It had been proved, he claimed, that the Prophet (peace be upon him) had issued no more than 100 lashes for an offence. He jokingly said judges would not be able to handle a 10-year prison sentence, let alone be on the receiving end of a whip. He was speaking on Monday at a weekly


cultural event hosted by Abdul Makhsout Khoja in Jeddah. Al-Obaikan was responding to a question from Abdullah Mana’a, who criticized whipping sentences that have exceeded 1,000 lashes in recent times, claiming they were damaging the country’s reputation and the wider Muslim community. Al-Obaikan also criticized judges who did not have the capacity to preside over certain cases, adding “some would judge in some issues without reference to documents and would only give their opinion, which is not acceptable in judging.” Nuclear Energy Front Saudi Shoura endorses nuclear safety report The Shoura Council endorsed a nuclear safety report proposed by the Health and Environment Committee at its weekly meeting on Sunday. Although the majority of members were unanimous on the need to sign the proposals, a number of members disagreed with a section in the report that suggested that Israel poses less of a nuclear threat. “The suggestion that Israel is more stable therefore less of a threat is inaccurate,” said Shoura member Mazin Balila. Balila said there was a need to hold talks with the “brotherly state” of Iran. “A joint agreement on nuclear safety in the region is needed between the two countries,” he said. Mohammed Al-Fadel said the danger that the Israeli arsenal poses should not be underestimated, adding that it is wrong to describe Israel as stable given that it is an occupying regime. Other members said the report failed to mention the obligations that the Saudi government would have to follow in case the report is signed. “Before joining we should not look at the incentives but obligations in doing so,” said Yehya Al-Samaan, another Shoura member. The question at hand “is whether the Kingdom’s regulations and laws are ready to meet the obligations that come by signing the agreement,” he said. Economic Front Half of GCC’s power projects in Saudi Arabia Ongoing power projects in the GCC have been estimated to be worth up to SR607.5 billion, with Saudi Arabia accounting for around 50 percent of the total investments according to recent industry reports. The massive power infrastructure development initiatives across the country provide a perfect backdrop for GCC Power 2009 Conference and Exhibition. Slated on Oct. 19- 21 at the Riyadh Marriott Hotel, the forum will serve as a centralized venue for regional and international industry players to tap into the world’s largest energy market. The trade conference and exhibition will feature two main events: 5th GCC CIGRE International Conference and the 14th Exhibition for Electrical Equipments. The GCC CIGRE conference is held annually in different GCC countries and is considered by the Council as its most important event. Saudi Arabia was chosen this year because of its leadership in the power field. The GCC arm of CIGRE was established by the GCC Ministers of Electricity & Water in April 1985 to facilitate technological and technical information exchange among the region’s member countries. Edward Rabbat, deputy general manager, Riyadh Exhibitions Company, said “the significant number of power projects in


Saudi Arabia has helped boost demand for innovative products and services as well as technologies and expertise in renewable power resources. GCC Power 2009 Conference and Exhibition creates an interesting business-to-business platform for suppliers, technology vendors, government and corporate decision-makers and other trade visitors to identify and discuss evolving challenges in the regional power industry, and at the same time cultivate collaborative efforts among all industry stakeholders.” Saudi demand for luxury cars on the rise The demand for luxury cars has been increasing in the Kingdom despite the world economic crisis, observed Abdullah Saleh Al-Shamashy executive director of EXCS Exotic Cars Exhibition at the Fours Season Hotel in Riyadh. Some 70 cars costing SR60 million was showcased at the 3rd Luxury Car Expo opened by Deputy Transport Minister Abdullah bin Abdul Rahman Al-Muqbel. Speaking to newsmen, Al-Shamashy recalled that during the first show SR20 million was netted and at the next show the amount was SR37 million. “This amply demonstrates the increase of sales of the luxury cars in the Kingdom because Saudi Arabia maintains an economy which has withstood the global economic problem. We hope to sell even more vehicles this time,” he said, adding that the show will remain open on Thursday. He said that the Kingdom, the largest automobile market in the Middle East, enjoys 50 percent of the total market in the region. He pointed out that some of the exhibits were being displayed in the show for the first time in the Middle East and in Asia. “The vehicles are strong, fast, modern and people can travel in comfort,” Shamashy said. Olaf Sewald, sales director of Wiesmann, said that his company sold nine vehicles from his Premium Collections Group but during the year 2010, the company has targeted 15 vehicles for sales in the Kingdom. The Italian car, Pagani, was priced at 1 million euros and the designer, Horaco Pagani, said that he produced only 20 cars a year. “We are happy that we are entering a market which is famous for the sale of luxury cars.” He noted that every Pagani manufactured by him was different from the other and that all were handcrafted. Saudi stocks uptick to continue Most Gulf stock markets gained fresh ground this week, particularly Saudi Arabia, as investors looked favorably to the rising oil prices and early reports of third quarter results, financial analysts said Friday. They noticed that crude prices would serve as a “catalyst” for regional bourses in the forthcoming weeks. On Thursday, bourses ended the week on a positive note but Dubai, where weekly gains were partly erased by profit-taking, while Abu Dhabi closed higher thanks to some individual stocks. Traders and analysts said the generally positive outcome came from rising oil prices and the third quarter reports from listed firms. They said that the upward movement of oil prices would serve as a catalyst for the Gulf stock markets in the coming weeks. Saudi non-oil output to grow 3.6% in 2010 Saudi Arabia’s economy will regain lost ground next year spurred by higher oil prices and strong domestic growth but unemployment, legislative reform and dependence on oil revenues remain concerns, Morgan Stanley (MS) said in a research note Thursday. Non-


oil output in the Middle East’s largest economy is expected to grow 3.6 percent next year and 4.7 percent in 2011, and higher oil prices will boost external balances, the US investment bank said in a note. “Saudi Arabia has managed to weather the global economic downturn and its near-term outlook remains positive,” the note said. JCCI, Russian Economic Federation sign joint cooperation pact A three-day Saudi-Russian business forum and exhibition, which includes the latest Russian products, opened under the banner “New Horizons of Trade and Economic Cooperation” at the Jeddah Chamber of Commerce and Industry (JCCI) Sunday. During the forum, the JCCI signed an agreement for joint cooperation with officials of the Russian Economic Federation. Mazen Batterjee, the JCCI vice president, on behalf of the JCCI president, inaugurated the forum in the presence of Ambassador Mohammed Al-Ahmed Al-Tayeb, director general of the Ministry of Foreign Affairs in Makkah region; Mustafa Ahmed Kamal Sabri, the JCCI Secretary-General; Vladimir Evtushenkov, president of the Arab Russian Business Council; S. Kuznetsov, the Russian Consul General, and a large number of businessman and entrepreneurs. The forum is being held with a view to developing investment opportunities for entrepreneurs and investors in the Kingdom and assisting in contract deals and joint ventures in various fields. Oil & Gas Aramco plans to start gas plant Saudi Aramco's gas processing plant at Khursaniyah was expected to start partial operations in a few weeks, two contracting sources said yesterday. Delays in construction at the plant delayed the whole 500,000 barrels per day Khursaniyah oilfield development project, one of the largest in Saudi expansion plans as the kingdom boosted crude production capacity to 12.5 million bpd. Khursaniyah oilfield started output in September last year, even though the gas plant was incomplete. The whole project was initially scheduled to start in December 2007. A shortage in labour and materials led to the delay at the gas plant. The plant has capacity to process around one billion cubic feet per day (cfd) of sour gas from the Abu Hadriya, Fadhili and Khursaniyah fields. Bahrain and Aramco in talks to build pipeline Bahrain is now in talks with oil giant Saudi Aramco over plans to move ahead with constructing a new pipeline between the two countries. Oil and Gas Affairs Minister and National Oil and Gas Authority chairman Dr Abdulhussain Mirza said discussions focused on what route the proposed pipeline would take to move crude from Saudi Arabia to Bahrain. "We are now in discussions on the design and the route," the minister said on the sidelines of the Offshore Middle East Conference and Exhibition, being held at the Bahrain International Exhibition and Convention Centre. The more than 100km project, expected to cost $ 350 million, is expected to take off by the end of the year. The three-day event is being held under the patronage of Dr Mirza and is organised by Pennwell Corporation.


UAE

International Front UAE and Palau establish ties United Arab Emirates and the Republic of Palau have issued a joint statement on the establishment of formal diplomatic relations between the two countries at ambassadorial level as of Oct.16, 2009. The communique was signed on Friday at the Permanent Mission headquarters of the UAE to the United Nations in New York by Ambassador Ahmad Abdul Rahman Al Jarman, UAE's Permanent Representative to the United Nations, and by the Ambassador of the Republic of Palau Stuart Beck, Palau's Permanent Representative to the United Nations, in the presence of the members of the diplomatic missions of both countries. The joint statement, which was filed with the United Nations in both Arabic and English, mentioned their mutual willingness to promote mutual understanding and strengthen the friendship and co-operation between the two countries in the political, economic, social, humanitarian, cultural and scientific areas based upon the principles and purposes of the UN Charter and the norms of international law. UAE wins Unesco body membership The United Arab Emirates was elected as a member of two Unesco councils; The Intergovernmental Council of the Management of Social Transformations (MOST) Programme and the Intergovernmental Council for the Information for All Programme (IFAP). The country's election to the two councils was made during the international organisation's 35th conference in Paris. UAE's Ambassador to France Abdullah Nasser Al Ameri expressed pleasure at the country's success in securing membership in the two vital councils within the Unesco. The country's election to the two councils was seen as a fruitful outcome to the efforts made by Abdullah Musabah Al Nuaimi, UAE's Permanent Representative to Unesco, to secure the membership. UAE establishes diplomatic ties with Haiti The UAE has established a diplomatic ties with Haiti, a joint statement signed here last night formally establishes diplomatic relations at ambassadorial level from yesterday October 21, 2009. UAE Permanent Ambassador to the United Nations, Ahmed Abdul Rahman Al-Jarman, signed the statement for his side while his Haitian counterpart, Leo Merores also signed for his country in a short ceremony held here at the UN headquarters and witnessed by some members of the diplomatic missions of the two sides. The joint statement, which was deposited at the UN headquarters in Arabic, English and French, expresses the desire of the two countries to achieve mutual interest of their peoples and to promote friendship and cooperation between them in the political, economic, social and humanitarian areas, in accordance with the UN Charter and international law, particularly in the areas of respect for and boosting of global peace and security, equality, national sovereignty, independence, regional peace and non-interference in the internal affairs of other countries according to the Vienna convention of April 18, 1961.


Yemen hails directives of UAE President for dispatching relief aid Yemen has lauded the instructions of President His Highness Sheikh Khalifa bin Zayed Al Nahyan, on dispatching urgent relief aid to those affected in the recent incidents in the northern Yemeni provinces. It reiterated that the move further boosts humanitarian initiatives of Sheikh Khalifa towards the Yemeni people, adding that such stances ease lives of the needy people. UAE, Syria hold talks The Syrian people and Government back the right of the UAE to sovereignty on the three Islands - Abu Musa, Greater Tunb and Lesser Tunb - occupied by Iran since the year 1971, stressed today Speaker of the Syrian Parliament Dr Mahmoud Al Abash. In a statement to WAM, the Syrian official said Syria calls for a solution to the issue of the islands through the relevant international bodies. He expressed hopes that "brothers in the UAE would regain their rights through the international legitimacy which both Syria and the UAE respect." Following a meeting here with visiting UAE National Federal Council (FNC) Abdul Aziz Al-Ghurair, Al-Abrash said he is visiting Iran early next year for talks on relations between the Syrian Parliament and The Islamic Consultative Assembly of Iran (Parliament). He noted the strong Iranian-Syrian relations expressing hopes that they would be in the interest of the peoples of the UAE and Syria. Moreover, the Syrian Parliament Speaker hailed the strong relations between the UAE and Syria under the wise leadership of President His Highness Sheikh Khalifa bin Zayed Al Nahyan and Syrian President Bashar Assad. UAE, Syria make bilateral headway Syrian president Bashar Al Asad has instructed his government to put into force all bilateral agreements between the UAE and Syria in a way that opens up investment channels in all sectors for companies and individuals.Federal National Council Speaker Abdul Aziz Abdullah Al Ghurair, heading an FNC delegation to Syria, announced this on Monday after a meeting with the Syrian president. Speaking to Khaleej Times, Al Ghuriar said, “We tackled a range of issues, among them opening Syrian airfields to further trade flights with the UAE.” The Syrian president gave an assurance Syria would amend laws to enable a UAE national to inherit or possess real estate. “This is not possible under existing laws.” The question of Syrian workforce in the UAE was also addressed. “A request was made to remove obstacles such as restrictions on job advertisements in Syrian newspapers,” Al Ghurair added.“We talked about enhancing the role of the Arab Inter-Parliamentary Union to act in the manner of the European Parliamentary Union,” Al Ghurair said Swine flu H1N1 influenza under control: Minister Ministry of Health and the National Authority for Emergency and Crisis Management launched on Saturday the second phase of the national campaign to raise awareness on combating the spread of H1N1 virus.


Economic Front Gulf stocks drop but UAE benchmarks buck trend Dubai and Abu Dhabi indexes rose yesterday as real estate and banking stocks outperformed on the back of strong third-quarter earnings results, while other Gulf Arab bourses fell on disappointing corporate reports. UAE economy sound: Suwaidi Current situation of the UAE economy is much better than that of last year according to the International Monetary Fund (IMF), Governor of UAE Central Bank Sultan Bin Nasser Al Suwaidi said on Sunday. "The IMF predicts the UAE economy is nearing the point of balance and this positive result is attributed to China's allocation of $580 billion to development which pushed average oil prices to $ 65 per barrel in 2009,'' Al Suweidi said during a joint meeting with the Federation of Chambers of Commerce and Industry (FCCI) and business community. UAE electronics market poised for boom Dubai Chamber of Commerce & Industry released an analysis highlighting the contribution of the consumer electronic goods market to the economy of the country in light of the personal computers, notebooks and accessories making up the dominant share of consumer spending in 2008. The study, which is based on a recent Business Monitor International (BMI) report on the UAE consumer electronics market, puts the spotlight on the UAE's geographical position as the country is a major electronics trading hub, re-exporting consumer electronic items to the Gulf, South Asia, the Commonwealth of Independent States (CIS) and Africa. Dubai is a major trading centre for the UAE electronics market accounting for 80 per cent of UAE's total exports and 85 per cent of re-exports.

KUWAIT International Front US Special Representative to Muslim Communities to visit Kuwait US Special Representative to Muslim Communities Farah Pandith will be visiting Kuwait on Sunday, a senior US official told KUNA here late Thursday. The official told KUNA that this is Pandiths "first trip to the Middle East as Special Representative to Muslim communities." Pandith is expected to meet with "civil society and government leaders, as well as students and youth, in order to listen to their concerns and discuss how we can form meaningful partnerships to implement Secretary Clintons vision of engagement with Muslim communities around the world," the source indicated. Pandith was appointed back in June by US Secretary of State Hillary Clinton to head the new Office of the US Special Representative to Muslim Communities. Special Representative Pandith, a Muslim, is responsible for executing the Administrations


efforts to engage with Muslims around the world on a people-to-people and organizational level. The position was created for the first time in the US history. Somali president arrives on official visit Somali President Sharif Sheikh Ahmad arrived here Sunday on an official, two-day visit during which he is set to hold talks with His Highness the Amir Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah. Kuwait, France sign new defense pact Kuwait's First Deputy Prime Minister and Minister of Defense Sheikh Jaber Al-Mubarak Al-Hamad Al-Sabah wrapped up yesterday an official visit to France during which he signed a new defense pact, described as "complimentary and in activation" of the 1992 treaty. The new agreement was signed by Sheikh Jaber and his French counterpart, Herve Morin. The Kuwaiti official had stated that the renewed pact is flexible for the political leadership and the armed forces regarding the strategic exchange. It "allows clearer flexibility for the political leaderships and paves further way for strategic cooperation for Kuwaiti and French forces," he stated. He affirmed that the pact, complimentary to the treaty that had been signed in 1992, stipulated cooperation in training, joint drills as well as equipping the Kuwaiti forces with state-of-art French arms. The agreement was a result of keenness of the political leadership in Kuwait and France to renew the pact, he said. French President Nicolas Sarkozy visited Kuwait last February and agreed on a strategic partnership. Defense ministers of both countries discuss renewal of the defense and military agreement, originally signed in 1992. Sheikh Jaber had said Kuwait was interested in purchasing French Rafale warplane due to its distinguished features. He hoped that "we soon see this plane within Kuwait Armed Forces. The issue is being examined in a flexible and serious manner and will happen through constitutional and legal channels in order to get this plane to join the Kuwait airforce fleet. Kuwait press crowned freest in the Arab World: Media watchdog Although Kuwait has maintained the highest rank in the Arab World in the Reporters Without Borders World Press Freedom Index, issues such as self-censorship have remained an encumbrance to free press. According to a French-based media watchdog, against the backdrop of a drastic decline in the media freedoms in the Middle East, Kuwait press is the freest in the Arab world. In its 2009 annual Worldwide Press Freedom Index issued on Tuesday, Reporters Without Borders rank Kuwait press freest in the region. Kuwait takes up 60th rank followed closely by Lebanon (61st) and the United Arab Emirates (86th), Qatar (94) and Oman (107). Saudi Arabia is at the bottom of the region's ranking on the 163th place. Ban urges Iraq, Kuwait to achieve progress Secretary-General Ban Ki-Moon late Monday welcomed the "fragile" progress on the issue of missing Kuwaiti and third-country nationals, and urged Iraq and Kuwait to redouble their efforts in the coming months, with the support of the Security Council, to achieve more "significant" progress. "I welcome the fact that the first six months of the


confidence and co-operation-building period have shown an indication of movement on the missing Kuwaiti and third-country nationals issue," Ban told the Security Council in a report. "I commend the concrete effort undertaken by Iraq to meet its responsibilities under Paragraph 14 of Security Council Resolution 1284 of 1999. I appreciate Kuwait's positive and supportive attitude," he added. Political Front Kuwait court rules, women MPs can shun hijab Kuwait's constitutional court on Wednesday rejected a petition brought by four voters to declare invalid the election of two women MPs because they refuse to wear the hijab headscarf. The decision of the court, whose rulings are final, was announced to reporters by the chairman of the court, Yussef Ghanam Al Rashid. Two of the four women who became Kuwait’s first female MPs in May refuse to wear the hijab, which has also been spurned by the only woman appointed as a minister in the Kuwaiti government following the May election. The voters said the two MPs had flouted a clause in an election law stipulating that women voters and candidates must comply with Islamic Sharia regulations, including wearing the hijab. Explaining its decision in a written verdict, the court said the election law fails to specify the type of regulations women must adhere to or whether that included wearing the hijab. It also pointed out that the Kuwaiti constitution, which is higher than any law, guarantees personal freedom and freedom of faith and does not discriminate between people over their religion or sex. The emirate’s fatwa department, which issues religious edicts, ruled in early October that Muslim women must wear the hijab in line with Islamic sharia law. Islamist MPs are demanding the authorities enforce the fatwa, but their liberal colleagues say it is non-binding, insisting the rule of law and the constitution should be the only points of reference. Kuwait does not enforce any dress code on women among the general public, because of the constitutional guarantee of personal freedom. The constitutional court also scrapped the election of MP Badi Al Dossari and declared former candidate Khaled Al Adwah a winner after finding mathematical errors in calculations of the number of votes they got in the May elections. After re-calculating the votes, the court said it found that Adwah had secured more votes than Dossari. The verdict does not change the composition of the house, as both men are tribal representatives. MP rejects committee's 'Islamist domination' MP Faisal Al-Duwaisan announced that he will run for membership of the parliamentary negative phenomena committee, and said that if he is elected as a committee member, he would also contest for the leadership position. He rejected "Islamist dominance of the committee", and called for its role to be restricted to preparing studies for submission to the Parliament. Revealing his plans in an interview with Al-Watan, Al-Duwaisan also advised the Cabinet to conduct a reshuffle to protect its members from a flurry of questions during the forthcoming parliamentary term and elaborated that he saw interpolation motions as


imminent. He also suggested that the Cabinet contains "elements of aggravation" in the form of ministers who seek to avoid responses to questions and stated that while co-operation between the two governing authorities is present to a certain degree, it is negatively affected by the provocative statements of some MPs. Al-Duwaisan also criticized the local media for the manner in which they present political news, and accused them of overhype. He alleged that a number of government ministers have displayed a lack of commitment to following a schedule and suggested that they lack organization. He claimed that each ministry had several people who mislead the ministers into overlooking rampant corruption. The veteran MP asserted that Kuwait's current business-related legislation meant that it is presently incapable of becoming a global commercial center, reported Al-Watan. On the contentious issue of citizens' loans, Al-Duwaisan called on the Cabinet to adopt a more flexible approach to the subject, while criticizing the proposed solution based on utilizing the insolvency fund. He said this would only benefit the banks despite their violation of the Central Bank of Kuwait's regulations. The MP also called on the Cabinet and the Parliament to co-operate to enforce bedoon people's civil rights. Meanwhile, the parliamentary legislative and judicial committee has approved the draft law on financial disclosure for senior officials, as well as another draft law on re-establishing the fatwa and Legislation Committee as an independent authority. In addition, it also approved a proposal submitted by MP Mohammad Hayef to seek the help of retired officials for work at state ministries. In other news, a number of Islamist MPs held a meeting at fellow MP Mohammed Al-Mutair's diwaniya, at which they discussed the parliamentary committees' priorities, leadership, and membership nominations, along with strategies for co-ordinating with other blocs. In the meantime, tension has continued to escalate over the accusations of Interior Minister, Sheikh Jaber Al-Khalid's involvement in the contentious elections billboards case, with MP Musallam Al-Barrak renewing his allegations against the minister, claiming he will reveal more facts at the inaugural session regarding the case. MP Dr Hassan Jowhar however, has urged the temperate use of constitutional tools, and said that he refuses to support unnecessary grilling sessions. On another issue, MP Naji Al-Abdulhadi insisted that no legislation on resolving the issue of citizens' loans can be produced until a consensus is reached between the Cabinet and the Parliament. Al-Abdulhadi revealed that he had presented a new proposal for resolving the issue based mainly on increasing the number of beneficiaries eligible for the insolvency fund, reported Al-Watan. With regard to other issues, MP Saleh Ashour called on the Cabinet to pay financial compensation to Hajj convoy organizers for the losses incurred by them as a result of low pilgrimage numbers swine flu concerns. In another development, MP Dulaihi Al-Hajri revealed that he will contest again for the position of Parliament Secretary. Social Front Day of fines and grilling The Criminal Court yesterday fined two MPs KD 3,000 each for issuing highly critical statements against government officials, including the prime minister, that were deemed offensive to them. Two newspapers were also fined the same amount for publishing the statements.


The court convicted Islamist MP Waleed Al-Tabtabai for strongly criticizing Prime Minister Sheikh Nasser Mohammad Al-Ahmad Al-Sabah over allegations of wrongdoings in the scheme to send patients for treatment abroad. Tabtabai denied after the ruling that he has violated the law, saying that he will challenge the ruling before the court of appeals. In the ruling, Al-Watan newspaper was fined a similar amount for publishing Tabtabai comments. The same court fined MP Hassan Jowhar and Annahar newspaper after the lawmaker issued statements highly critical of the interior minister over measures taken against Bedoons, or stateless Arabs which the newspaper published. The two MPs were tried on charges of committing press misdemeanors under the country's press and publications law. In the meantime, the public prosecution yesterday questioned MP Khaled Al-Tahous over allegations of slander against Oil Minister Sheikh Ahmad Al-Abdullah Al-Sabah and a number of oil executives. Kuwait activists divided over single-constituency bill Political activists expect that the proposed one-constituency bill will not be discussed by the National Assembly in the near future. The draft law is aimed at turning Kuwait into a single constituency. Activists were divided on the urgency of the bill that calls for the amendment of the Election Law. A section of activists interviewed by the Kuwait Times said that the country is passing through a phase of financial and economic insecurity, and that the single -constituency bill is not of top priority at the moment. Other views suggested that bringing up the issue at present only serves specific campaigns in order to gain voters' popularity. The parliamentary Interior and Defense Committee recently passed a proposed amendment to the election law. According to this, polls should be held on the basis of a single constituency, as opposed to the existing five-constituency system. However, MP Jamaan Al-Harbash, Chairman of the committee said that this approval of the proposed law was only on an idea and the devil is in the details. Kuwait eyes mega projects Kuwait plans to spend KD18 billion over the next four years on 250 massive projects, a newspaper reported yesterday. The projects are included in a four-year program approved by the cabinet on Monday and will be sent to parliament later this week, sources said. The daily did not name any project but Kuwait, awash with cash from oil revenues, has been planning a new business hub dubbed Silk City as well as a new modern harbor, a railway and metro system. The plan which runs from the current 2009/2010 fiscal year until 2012/2013 will focus on boosting the private sector's role in the domestic economy. Kuwait's private business accounts for just a quarter of gross domestic product. The emirate is estimated to have foreign assets of close to 230 billion dollars, run by its sovereign wealth fund, despite sharp losses in the past year due to the global economic downturn. The Gulf state has been vying to diversify its economy but wrangling between parliament and the government has delayed key projects. OPEC's fourth largest producer sits on about 10 percent of global oil reserves and pumps about 2.2 million barrels per day. It has a native population of 1.1 million besides 2.34 million foreign residents.


Economic Front Kuwait, Bahrain bank profits fall Major Kuwaiti and Bahraini banks reported a sharp decline in third-quarter profit yesterday as they raised provisions to cover bad loans to Saudi firms. One lender, Kuwait’s Gulf Bank said it expected bad loans would weigh on profits up to mid-2010. The bank, which did not publish a net profit or loss figure for the quarter ended September 30, also used its entire operating profit of $ 147.1m from the third quarter as provisions. A debt implosion at Saudi conglomerates Saad Group and Ahmad Hamad Algosaibi & Bros (AHAB) has sent shockwaves through the region and forced banks to book massive provisions against their exposure to the firms. Non-oil revenue expected to touch KD 4 million The income generated from non-oil revenue sources is expected to touch KD 4 billion within five years. This is after the total income touched KD 1.1billion during the fiscal year 2008-2009. The diversification of local and foreign investments, as well as flourishing the private sector, compulsory taxation on investment products, and a conducive environment for mega projects are expected to contribute toward this growth. According to an official, the Minister of Finance Mustafa Al-Shamali has executed an executive strategic plan to increase the income generated from non-oil sector and improve citizens' standard of living while maintaining the stability of prices. The official further indicated that the plan would be initiated by supporting the public sector, and integrating it with financial activity. The government has assigned a slew of programs , and has provided the private sector with the necessary land where they can be implemented. In addition, the plan will call for easing bureaucratic procedures for investment to be made in the private sector. This includes developing the legislative controls at the public sector and allowing it to improve and create infrastructural projects, reported Al-Watan. The plan will also support small and medium-scale businesses, in addition to preparing a proper environment to recruit foreign workers.

BAHRAIN International Front Bahrain votes to end contacts with Israel Bahrain’s Parliament on Tuesday approved legislation penalising contacts with Israel. “Whoever holds any communication or official talks with Israeli officials or travels to Israel will face a fine ... and/or a jail sentence of three to five years,” member of Parliament Jalal Fairooz from the Shiite Al-Wefaq bloc, an opposition group that was the driving force behind the move. “The motivation is that steps are being taken by certain countries to allow certain talks to be held with Israeli officials. Israeli delegates have managed to participate in events in Arab countries with no treaties with Israel.” Bahrain’s Crown Prince Sheikh Salman bin Hamad bin Isa Al Khalifa wrote in the Washington Post in July that Arabs had not done enough to communicate directly with Israelis. “We


believe that establishing contacts with the Zionist enemy is an offense punishable by law,” said Nasser al-Fadhallah, a conservative lawmaker. He said it would be “embarrassing for the government” if the bill — which will be transferred to the upper house sometime in November — is postponed or blocked because it would be obstructing the will of the Bahraini people. Bahraini officials visited Israel in July in an official capacity for the first time to collect five of their nationals Israel was deporting after seizing them on a ship bound for the Palestinian territory of Gaza, blockaded by Israel. Bahrain MPs vote to ban all contact with Israel Parliament in Bahrain, ignoring government objections, passed a bill yesterday to outlaw any contact with Israel. MPs approved jail terms of three to seven years and fines of 10,000 Bahraini dinars ($ 27,000) for offenders. The draft law, seen by AFP, bans “any contact or relations with Israel” and forbids “the establishment of diplomatic or consular representation” between the two countries. The bill still needs clearance by the consultative council. Abdel Aziz al-Fadhel, minister for consultative committee and parliamentary affairs, told MPs during the debate that the bill “constitutes interference by the legislative body in executive matters.” Social Front Education right of every citizen BAHRAIN's commitment to education is a permanent trend that is set at the heart of the country's plans for the future, Crown Prince and Economic Development Board (EDB) chairman Shaikh Salman bin Hamad Al Khalifa said yesterday. The country made education a priority 90 years ago, in 1919, when it introduced the first public education system, followed in 1928 by becoming the first nation in the Arab world to establish a school for girls, he said. Since then Bahrain has seen it a duty and privilege to continue the country's tradition of educational reform, Shaikh Salman said. He was delivering a special address at the first annual Bahrain Education Project, which opened at the Shaikh Isa Cultural Centre, Juffair, yesterday. "Our commitment today is just as passionate, to keep improving the education and training opportunities for all our people, regardless of gender or religion or income," he said. Economic Front Bahrain’s positive growth is praised Bahrain’s two per cent gross domestic product (GDP) growth this year is a sign of good things to come, said a global financial expert yesterday. Standard Chartered Bank Middle East North Africa and Pakistan global markets regional head Marios Maratheftis said the positive growth, though it was low compared with the 7pc in the previous year, was very creditable in view of the other major Gulf economies recording negative growth. Speaking to the media at the Ritz-Carlton Bahrain, Hotel and Spa, the Dubai-based Mr Maratheftis said Bahrain’s GDP will grow by 3pc or more next year and will contribute significantly to the GCC region, which is slowly emerging as a


major player in the global economic scenario. “At a time when UAE, Saudi Arabia and Kuwait were reeling, Bahrain stood out,” he said. Finance ministers to probe crisis impact Several Arab finance ministers and central bank governors will debate the impact of the global financial crisis on Arab economies at a Kuwait Financial Forum next month, organisers have said. The two-day forum, starting on November 1, will focus on Arab economies in the post-crisis phase and on the challenges facing Arab banks from the slowdown in economic growth and the liquidity crunch, they said on the event's website. Organised by the Beirut-based Al Iktissad Wal Aamal Group in co-operation with the central bank of Kuwait, the forum will also focus on lessons that should be learned from the large losses sustained by sovereign wealth funds. Finance ministers from Bahrain, Qatar and Mauritania will attend, in addition to central bank governors of the GCC states, Jordan and Lebanon. Arab governments and private investments are estimated to have lost around £2.5 trillion because of the global financial crisis, according to Kuwait's Foreign Minister Shaikh Mohammad Al Sabah. Bahrain and US vow to meet free trade target Industry and Commerce Minister Dr Hassan Fakhro yesterday said Bahrain and the US were 'moving ahead on a road of understanding' and co-operation towards achieving all the objectives of the Free Trade Agreement (FTA) between the two countries. Speaking at the wrap-up session of the second Bahrain-US FTA joint review committee meeting at the Gulf Hotel, he said the meeting had been successful. "We hope in the coming year we will remove all of the current issues off the table and them be able to focus completely on the business of business," Dr Fakhro said. The minister said the discussions were held in a congenial atmosphere and positive spirit that was conducive to obtaining mutual aspirations. "We have all worked hard - be it the US side or my Bahraini colleagues," he said. "It often takes time to pass laws and regulations through the legislative and administrative process but we have made these procedures happen." He said there needs to be continuous dialogue on items on the agenda with the efforts of officials from both sides. "We started our discussions with an overview of what we have achieved so far in terms of the benefits of the FTA and we share the opinion that the effects so far have been very positive according to the numbers and the success stories." He said the private sector needs to be mobilised further to find ways of assisting the small and medium-sized enterprises to benefit from the agreement. Transparency has been an underlying factor in a number of discussions on the environment and labour and both sides have been able to demonstrate their commitment to full transparency on these issues, he added. The minister said government procurement and access of US companies to the Bahrain government procurement were discussed and Bahrain has assured the US side of its commitment to the terms of the FTA in this regard. Kingdom's economic strides praised The business community yesterday rallied to hail His Royal Highness Prince Salman bin Hamad, the Crown Prince and Economic Development Board chairman, for his efforts to speed up progress and spur growth.


"Bahrain has achieved an impressive leap forward thanks to HRH Prince Salman bin Hamad's ambitious and forward-looking initiatives," Bahrain Chamber of Commerce and Industry chairman Dr Essam Fakhro said. The private sector, he said, is feeling the dividends of these initiatives, projects and programmes which put Bahrain on a par with advanced nations. He described the Bahrain Vision 2030 as a new and promising start for the national economy as it aspires to achieve more progress and prosperity. He highlighted the HRH Prince Salman bin Hamad's personal follow up of issues and problems of interest and concern to businessmen. The drive to create a proper environment and attract foreign direct investments to Bahrain also won accolades. Energy Front Energy projects top $690 billion Gulf hydrocarbon projects have topped $690 billion, says a report by Dubai-based research house Proleads Global. A full 30 per cent of hydrocarbon projects by value have been put on hold or cancelled, it said. The report shows, however, that the GCC countries remain the most active construction markets in the world for the oil, gas and petrochemical industries with projects budgeted at more than $690bn. Proleads investigated a total of 578 hydrocarbon projects across the GCC countries, and found that 30pc by value have been placed on hold or cancelled with a further 30pc currently in construction and 40pc in the pre-construction phase. Proleads director Emil Rademeyer said GCC countries have been taking a long, hard look at spending in the wake of the global recession, falling demand and the volatility of oil markets with projects rescheduled to take advantage of lower costs or cancelled. "GCC oil, gas and petrochemical sectors' earnings constitute about 85pc of the region's export revenues. "Demand for hydrocarbons and refined product can also be expected to pick up as the global economy gradually pulls out of recession." The Proleads Insight report covers projects in the oil and gas production and refining sectors with values greater than $10 million each in Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE. Energy sector challenges to be analysed The first GCC conference for oil, gas and petrochemical investments will open tomorrow at 8.30am at the Gulf Convention Centre. Oil and Gas Affairs Minister and National Oil and Gas Authority (Noga) chairman Dr Abdulhussain Mirza will patronise the event. The GCC chambers' federation is co-ordinating the conference with Bahrain Chamber of Commerce and Industry and Noga. Energy experts will address participants on the prospects of oil, gas and petrochemical industries between 2010-14. The challenges facing this vital sector in the Middle East will come under the spotlight. Speakers representing key organisations will outline investment opportunities in the Gulf region. Specialised workshops will also be held on the sidelines of the conference. Oil and Gas Mideast oil and gas ICT summit on way


Bahrain will host the third round of the Middle East Oil and Gas ICT Summit next month. The event, on November 3 and 4, will be held under the patronage of Oil and Gas Affairs Minister and National Oil and Gas Authority chairman Dr Abdulhussain Mirza. It is organised by the Dubai-based The World Development Forum. This year the summit is focusing on 'Technology as a strategic pathway during the transition from recession to recovery,' with the participation of delegates representing Bahrain, Saudi Arabia, Kuwait, the UAE, Qatar, Oman, Egypt, Jordan, Libya and Yemen.

QATAR Qatari PM meets British parliamentarian HE the Prime Minister and Foreign Minister Sheikh Hamad bin Jassim bin Jabor al-Thani holding talks with William Hague, member of the British House of Commons and minister for foreign affairs of the shadow government in the British Parliament and his accompanying delegation who are currently visiting Qatar. Talks during the meeting dealt with aspects of co-operation and issues of common concern. Separately, HE the Deputy Premier and Minister of Energy and Industry Abdullah bin Hamad al-Attiyah yesterday met William Hague. Talks dealt with boosting co-operation between Qatar and the United Kingdom in the energy and industry sectors as well as other issues of common concern. Qatari PM holds talks with Croatian foreign minister HE the Prime Minister and Foreign Minister Sheikh Hamad bin Jassim bin Jabor al-Thani, yesterday received Croatian Minister of Foreign Affairs and European Integration Gordan Jandrokovie and his accompanying delegation. Talks dealt with aspects of co-operation between the two countries and means of boosting them. Qatar’s Foreign Ministry and Croatia’s Ministry of Foreign Affairs and European Integration yesterday signed two protocols of co-operation. Qatar Emir, Bangladesh PM hold talks HH the Emir Sheikh Hamad bin Khalifa al-Thani held talks with the visiting Prime Minister of Bangladesh Sheikh Hasina yesterday at the Emiri Diwan. Talks dealt with bilateral co-operation and a set of regional and international issues of common concern. Qatar criticizes Israel Qatar has strongly condemned the storming of the Al Aqsa Mosque by Israeli occupation forces and the use of force and violence against worshippers. An official source at the Foreign Ministry told QNA that the attacks were in violation of international conventions and a breach of international and humanitarian law and an attempt by Israel to drag the region into a spiral of violence to implement its plans to eliminate any chance of achieving peace in the region. The source called on the international community to take immediate measures to protect the Islamic holy sites from these attacks and to achieve security and stability in the region. The source reiterated Qatar’s support to the Palestinian people in their just struggle for their legitimate rights, including the right to self-determination and to establish their independent state on their national soil with Al Quds (Jerusalem) as its capital.


Qatar Emir meets king of Saudi Arabia HH the Emir Sheikh Hamad bin Khalifa al-Thani met yesterday the Custodian of The Two Holy Mosques King Abdullah bin Abdulaziz al-Saud at the latter’s farm at Jenadriyah, in Riyadh. Talks dealt with bilateral relations and means of promoting and developing them in all areas, in addition to regional and international issues of common concern. Oil & Gas Qatar enjoys ‘tremendous flexibility’ in gas supplies HE the Deputy Premier Abdullah bin Hamad al-Attiyah has said Qatar has “tremendous flexibility” in supplying LNG to the global markets because of its liquefaction capacity and shipping facilities. Al-Attiyah, who is scheduled to visit China soon, said: “The Chinese market is important to us. We believe energy demand will rise in China consequent on thecountry’s economic development. “We have already tied up with Shell and Petro China to establish a petrochemical venture and a refinery project in China. “Because China is very important to us, we have already opened an office in the country,” al-Attiyah added. He said though the gas price has fallen in the US, the situation is different in many Asian markets. China’s energy demand is rising while US demand falls. China imported a record volume of LNG in September, when it also posted its fastest oil demand growth in over three years. China received its first LNG cargo of about 216,000 tonnes from Qatar last week. The cargo was the first in a 25-year supply agreement between Qatargas and China National Offshore Oil Corporation (CNOOC). China is increasingly competing for access to world energy to power an economy that’s growing at a time when the US continues to be weighed down by the global financial crisis hitting energy demand in North America. RasGas vice-chairman, Dr Ibrahim B Ibrahim, also the economic adviser to HH the Emir, said Qatar would not go to a low-price market. “No, we will not go to a low-price market – there is a lot of demand for our gas elsewhere. We will go to the US market if prices justify it, but I don’t think we will dump any supplies there,” Ibrahim said. US gas prices have fallen by more than 60% from highs hit last summer, a Dow Jones report said. Although LNG represents only a small portion of the US gas supply – about 2.5% in the third quarter of 2009, a significant uptick in imports to the US from new plants could weigh on prices, it said. Qatar has sold most of its gas on long-term supply contracts, but can redirect them if buyers pay up. Qatar diverts LNG to China from US China has shown keen interest in getting liquefied natural gas (LNG) supplies from Qatar, Deputy Premier and Minister of Energy and Industry H E Abdullah bin Hamad Al Attiyah told a news conference yesterday. Qatar has diverted 5 million tonnes per year of LNG to China which was previously intended for the United States, said Al Attiyah. “China has shown keen interest in getting our LNG and we have the right to divert our gas to a better market. I am a big believer in China market,” he said after the inauguration of RasGas Train 6 here. China received its first LNG cargo of 216,000 tonnes from Qatargas last week. The LNG shipment was the


first of the 25 year supply agreement between China and Qatar. He said Qatar would not hesitate to divert its LNG cargoes to other markets if it gets better market conditions and lucrative price rather than dump its gas to the United States. Referring to the fluctuating gas prices and the justification for such massive investment on LNG facilities, Al Attiyah said, “It is true that the prices of gas has been fluctuating in the US and we are therefore diverting our LNG to other markets where the prices of gas are based on the demand and supply dynamics.” He added that Qatar would look to sell gas to China, Poland and elsewhere where it can get better price.

OMAN International Front Alawi confers with Carter, receives Croatian FM Yusuf bin Alawi bin Abdallah, Minister Responsible for Foreign Affairs, received here yesterday US former President Jimmy Carter. The meeting reviewed bilateral relations and current regional and international issues of common concern. Carter left the Sultanate later in the day after a two-day visit. The meeting was attended by Mohammed bin Ali al Khusaibi, Head of American Affairs Department at the Foreign Ministry. Alawi also received Gordan Jandrokovic, Croatian Minister of Foreign Affairs and European Integration, who is currently visiting the Sultanate (Picture right). The meeting touched on aspects of co-operation and means of enhancing bilateral relations. The meeting was attended by Sayyid Badr bin Hamad bin Hamoud al Busaidy, Secretary General of the Foreign Ministry, and Salim bin Abdullah Barham, Head of the Eastern Europe Department. Oman, Saudi border officials hold talks Border officials from Oman and Saudi Arabia held a meeting here yesterday in preparation for higher degree border authorities meeting. The Omani side at the meeting was headed by Maj Gen Salim bin Mussalam Qatan, Assistant Inspector General of Police and Customs, while the Saudi side was headed by Maj Gen Zameem bin Juaibir al Sawatt, Director General of Border Guard. The meeting discussed ways of enhancing cooperation between the two countries in the fields of security. Oman, Saudi Arabia sign border document The Sultanate and Saudi Arabia have signed at the Al Bustan Palace Hotel yesterday the minutes of the border authorities’ higher level meeting. The border agreement between the Sultanate and Saudi Arabia includes first and higher level border authorities headed by the interior ministers of both countries. The first level border authority meets every six months, while the higher level border authority meets every one or two years. It was agreed during the meetings of the higher level border authority meeting to speed up the implementation of post/checkpoint of land border linking the two countries. The Saudi Deputy Interior Minister hoped that implementation of the border post will be accomplished soon.


Qaboos directs dispatch of aid to Yemen His Majesty Sultan Qaboos bin Said has issued Royal Directives for sending immediate relief to those displaced in the governorate of Sa’dah in the Yemeni Republic, an official source at Oman Charitable Organisation (OCO) said, yesterday. The source added that OCO was ready to send the first batch of assistance while the other relief flights would continue till completion of the mission. The source also said that the relief material included 300 tonnes of medicine supplies; 150 tonnes of food commodities and 100 tonnes of other relief supplies. The assistance would reach the targeted area in the Yemeni republic under the supervision of a team from the Sultanate’s embassy in Yemen and the OCO.

TURKEY

No.89

TURKEY

Weekly Report on Political, Geo-Strategic,Social and Economic Issues

Period: October 11– 17, 2009.

Submitted By: Aasia Khatoon

Presentation: October 21, 2009

NEWS OUTLINE

• POLITICAL ISSUES

KURDISH ISSUE PM to speak on Kurdish initiative in 50 cities, Europe CHP to lend conditional support to Kurdish initiative

Turkey's PM says Europe shelters PKK militants Turkey's PM says Kurdish opening to be debated at open session

Turkey's opposisiton leader replies to gov't Kurdish opening letter

Turkey to start regional diplomacy within "Kurdish opening" Report: PKK to send 'peace groups' to Turkey

• GEO-STRATEGIC ISSUE


President Stresses Importance of Making Caucasus A Cooperation Zone

Turkey urges to take Bosnia's territorial integrity under guarantee Turkey's FM says EU should consider Bosnia in enlargement strategy

Turkey urges to take Bosnia's territorial integrity under guarantee EU's problems cannot be solved without Turkey"

Turkey's EU process to "never be interrupted" Bagis says Turkey still pays gih efforts for EU bid German parties won’t rule out Turkey’s EU bid

The EU Publishes Turkey's Progress Report

Turkey's PM praises EU progress report as "best" "Close friends" Turkey, Macedonia boost ties Turkey rejects Israel Nato exercise TV row brings new twist to mounting Turkey-Israel tension Davutoğlu: Turkey is not a country that censors Turkey not severing ties with Israel, Deputy PM says Turkey: Israel must end humantarian crisis in Gaza for better ties Turkey's General Staff meets Pakistani top officials in Swat Turkish police searches TV channel in chairty fraud case Kazakh President to visit Turkey to meet leaders Turkey's PM: Armenia deal approval linked to Karabakh pullout Turkey's Gul makes first comment after Armenia deal

Turkey's FM tells crisis moments in Armenia deal

Turkey to send Armenia protocols to Majlis next week

Turkey's PM urges soccer fans to keep politics away from Armenia game Turkey's PM says to make detailed statement on Armenia protocol Sunday Occupied Karabakh will affect Turkey-Armenia ties: senior MP

Turkey's National Security Council to meet in Ankara on Oct 20 Syria says to hold military exercises with Turkey Turkey's FM leaves for Syria for first strategic meeting Turkish Cyprus irritiated by Cyprus article in Progress Report

• ECONOMIC ISSUES Turkey to help Iraq on natural gas Turkey, Pakistan sign protocol, Erdogan's visit set Turkey says wants to boost trade with Pakistan

Turkey's Central Bank reduces interest rate

Foreign exchange reserves in Turkey's CB rises Turkey's finance ministry says budget deficit 40.8 bln TL Turkey's stock market hits 2009's new record high Turkey says to sign over 40 protocols with Iraq Italian sector representatives to meet Turkish business circles


Turkey says to form special country desks for foreign trade Turkey, Syria to complete Arab natural gas pipeline in 18 months

Turkey calls on Islamic states to set up common economic zone

Turkish Minister in Pakistan for joint economic meeting

Turkey sacks head of state pipeline company Botas • SOCIAL ISSUES

Turkey TV series tells Palestinian drama under Israeli guns / PHOTO Mevlana's Masnawi to be Published in Chinese, Kazakh, and Greek Officials on alert as swine flu cases rise to 15 in capital Swine flu cases in Turkey rise to ten in Ankara school The school will be closed for a week.


POLITICAL ISSUES

PM to speak on Kurdish initiative in 50 cities, Europe Tuesday, 13 October 2009 09:44 Todays Zaman ------------------------------------------------------------ Prime Minister Recep Tayyip Erdoğan, who is trying to win the support of opponents of the Kurdish initiative, is planning to speak about the initiative in 50 Turkish provinces as well as in some European capitals. A government source said the government will not speak with representatives of the outlawed Kurdistan Workers' Party (PKK) to ensure that the separatist organization, which has been attacking Turkey from its bases across Turkey's southeastern border,


abandons its armed struggle. And if the PKK insists on using violence in the face of the government's initiative to grant the country's Kurdish people broader rights and freedoms, Turkey will respond with cross-border operations. The leader of pro-Kurdish Democratic Society Party (DTP) Ahmet Türk stated recently that the government should not expect the DTP to tell the PKK to lay down its arms. “If you want the PKK to lay down its arms, go and have the PKK do it. Don't expect us to do it,” Türk said. A government official stated that Türk's words illustrate that the DTP has no power over the PKK, adding that Türk indirectly alluded to the idea that the PKK should considered a counterpart in negotiations on the initiative. The source noted that the government would not consider the PKK a counterpart in discussing the issue. In recent weeks, Interior Minister Beşir Atalay has met with various political parties and civil society organizations to discuss the scope of the Kurdish initiative. However, the opposition Republican People's Party (CHP) and Nationalist Movement Party (MHP) have refused to schedule an appointment with the minister. CHP leader Deniz Baykal received a long-expected letter from Prime Minister Erdoğan last week asking for his support for the government's Kurdish initiative. Erdoğan's letter included information on a series of meetings Atalay had with various civil society groups, intellectuals and academics as part of the Kurdish initiative and recalled two comprehensive reports on the Kurdish question prepared by the CHP in 1989 and 2004, pointing to suggestions the CHP made in these reports for a settlement. Meanwhile, after examining the results of public opinion surveys in various parts of Turkey where 20-30 percent of the ruling Justice and Development Party's (AK Party) supporters oppose the initiative, Erdoğan decided to visit the people in these areas to tell them more about the initiative. Since Erdoğan plans to visit 50 provinces in Turkey to convince the public about the benefits of the initiative, he asked his ministers to do the same. Erdoğan will concentrate especially on provinces where the MHP has increasingly received more support, such as Hatay, Mersin, Antalya, Balıkesir, Manisa, Tekirdağ, Zonguldak and Kastamonu. The prime minister will also ask the governors of the provinces to have private talks with family members of PKK members to ask for their support in convincing their children to come down from the mountains. The government is also planning to gather support from the community and religious leaders in the country's predominantly Kurdish southeastern region. Erdoğan will also visit some European capitals, partly because Europe is a major source of financial support for the PKK. Erdoğan's European tour is expected to include Germany, Belgium, the Netherlands, Sweden, Denmark and Austria. The prime minister will tell European officials that people who were stripped of their Turkish citizenship following the Sept. 12, 1980 military coup in Turkey will be granted Turkish citizenship. Erdoğan will also address Kurdish people from Turkey living in Europe and tell them that they can be Turkish citizens again if they were stripped of their citizenship. --------------------------------------------------------------------------------------------------------------------- CHP to lend conditional support to Kurdish initiative


Monday, 12 October 2009 17:21 Todays Zaman ----------------------------------------------------------- The main opposition Republican People's Party (CHP) will support the government's Kurdish initiative, a democratic process that will include expanding the linguistic and cultural rights of Kurds with the hope of putting an end to separatist terrorism, sou Baykal is expected to announce his party's stance on the Kurdish question at a press conference, according to CHP Deputy Chairman Onur Öymen. Speaking to Today's Zaman in Bursa, where he traveled to commemorate the 87th anniversary of the Armistice of Mudanya, Öymen said the party had reviewed a letter sent by Prime Minister Recep Tayyip Erdoğan last Friday to CHP leader Baykal seeking support for the government's Kurdish initiative. “We will announce our decision to the public early this week. We have no intention of keeping our prime minister waiting any longer. The CHP's stance on the Kurdish issue is clear, anyway,” he said, adding that the CHP's reply will not necessarily be negative. He recalled, however, that the CHP has “red lines” the party will never be willing to cross, such as formulas that might change Turkey's unitary form of government and the introduction of Kurdish in schools as a language of instruction. Öymen implied that the CHP would be willing to meet with Erdoğan to talk about the initiative as long as the Justice and Development Party (AK Party) guarantees that it will not push the red lines. A third “red line” for the CHP is issuing a “general amnesty” for Kurdistan Workers' Party (PKK) terrorists that might include the PKK's jailed leader, Abdullah Öcalan. Currently, the democratization package being worked on by the government abides by these red lines. The package makes clear that any development will conform to the first three articles of the Constitution, which clearly state that Turkey is a unitary state and that the language of instruction is Turkish. The government has been opposed to a general amnesty that might include Öcalan from the start. In other words, there appears to be nothing preventing Prime Minister Erdoğan and CHP leader Baykal from getting together to discuss the Kurdish initiative. Öymen on the Armenian protocol Öymen also criticized an agreement between Turkey and Armenia that was signed on Saturday night despite a last-minute glitch, saying the pact was going to cause irrevocable damage. On a related note, the Turkish and Armenian soccer teams are slated to playing a World cup qualifying game this Wednesday. “With the protocol signed in Zurich, Turkey has made important concessions. Ahead of the game, Armenia has demanded that Turkey open its border unconditionally. And while Turkey has promised to do so, it hasn't demanded anything in return. It has not forced Armenia to recognize the Treaty of Kars. It is also not certain whether the Armenian Parliament will ratify this. For years, Turkey was an unforgivable country for the Algerian people because of its pro-France stance during the French-Algerian war. The people of Algeria have still not forgiven Turkey, despite an apology from Özal. The Armenian protocol will lead to similar damage in Turkish-Azerbaijani relations,” Öymen said. ------------------------------------------------------------------------------------------------------------


----------- Turkey's PM says Europe shelters PKK militants Friday, 16 October 2009 16:14 WORLD BULLETIN ----------------------------------------- Turkey's premier urged Friday European countries to crack down on the financing of the PKK. Turkey's premier urged Friday European countries to crack down on the financing of the PKK. Prime Minister Recep Tayyip Erdogan's remarks came after the U.S. Treasury announced it froze the assets of three top members of PKK. "There is more than that in Europe. Although we explained it to European leaders several times, they are still deaf to it," Erdogan said. "They say they are against terrorism, they talk about joint fight against terrorism but they do not crack down on it (the terrorist organization) although we have given them names and documents." The PKK was labeled as a terrorist organization by the United States and the European Union. Turkey, Iraq and the United States have formed a tripartite mechanism to combat PKK militants in the north of Iraq where PKK has camps and uses the region as a base to attack Turkey. Turkey has repeatedly said EU was not doing enough to cut PKK activities and financing in Europe. "I would like to speak clearly. They even give shelter to those (PKK militants) who have been sought with red notice. They harbor those who escaped from my country and they even give them residence permit. Whatever happened to democracy and its understanding of advocacy for freedom?" --------------------------------------------------------------------------------------------------------------------- Turkey's PM says Kurdish opening to be debated at open session Tuesday, 13 October 2009 14:29 WORLD BULLETIN Erdogan said an open session on Kurdish opening would take place at the parliament. Justice & Development (AK) Party chairman and Prime Minister Recep Tayyip Erdogan on Tuesday thanked Republican People's Party (CHP) chairman Deniz Baykal for his affirmative response to his request for appointment. "This is a positive step for me. I will give necessary reply after assessing the matter," Erdogan said at his AK Party group meeting. "I will absolutely not assess the content of the letter now. We will do it when we meet," Erdogan said. Erdogan said an open session would take place at the parliament, "we will have the opportunity to share the developments regarding the initiative process with the parliamentarians and the nation. Every step will be carried out with the implicit approval of the public. This is not a secret process." Deniz Baykal sent a letter to Turkish Prime Minister Recep Tayyip Erdogan on Monday, expressing his pleasure to host Erdogan in the following week to discuss the democratic move. On October 8, Erdogan sent a letter to Baykal, requesting a meeting with the main


opposition leader regarding the democratic move. Baykal also enclosed three reports in his response letter to Erdogan. These three reports were entitled "Approach to East and Southeast Problems and Solution Proposals-1989", "Bill on Using Different Languages than Turkish-1991", and "Parts of CHP Program on East and Southeast Problems-2008". On July 22, Erdogan announced that his government initiated a move to deal with Kurdish issue and the Ministry of Interior was assigned with coordination of this task. A week later, Interior Minister Besir Atalay said their government believed the so-called "Kurdish issue" would be solved with an egalitarian approach through democratization. Also, on October 9, Erdogan said that he wanted to set a date for debating the government's "democratic move" after he got a response to his letter to the opposition party leader. ---------------------------------------------------------------------------------------------------------------- Turkey's opposisiton leader replies to gov't Kurdish opening letter Monday, 12 October 2009 15:48 World Bulletin / News Desk ----------------------------------------------- The chairman of Turkey's main opposition party expressed willingness to meet Erdogan regarding Kurdish opening. The chairman of Turkey's main opposition party expressed willingness on Monday to meet the Turkish premier regarding the government's democratic move in an official word that refers to Kurdish opening. Deniz Baykal, the chairman of the Republican People's Party (CHP), sent a letter to Turkish Prime Minister Recep Tayyip Erdogan in which he expressed his pleasure to host Erdogan in the following week to discuss the democratic move. Baykal refused to back the opening. "I will be pleased to host you at the CHP headquarters at any time you would like next week," Anadolu news agency quoted Baykal as saying in his letter. On October 8, Erdogan sent a letter to Baykal, requesting a meeting with the main opposition leader regarding the democratic move. Baykal also enclosed three reports in his response letter to Erdogan. These three reports were entitled "Approach to East and Southeast Problems and Solution Proposals-1989", "Bill on Using Different Languages than Turkish-1991", and "Parts of CHP Program on East and Southeast Problems-2008". On July 22, Erdogan announced his government initiated a move to deal with Kurdish issue and Ministry of Interior was assigned with coordination of this task. A week later, Interior Minister Besir Atalay said their government believed the so-called "Kurdish issue" would be solved with an egalitarian approach through democratization. Also, on October 9, Erdogan said that he wanted to set a date for debating the government's "democratic move" after he got a response to his letter to the opposition party leader. "Regional diplomacy" Interior Minister said Turkey would start regional diplomacy within the opening to stop PKK violence and cut the support of local Kurds, developing the walfare of Kurds in these countries.


Atalay underlined that the matter has security, intelligence, diplomatic and economic dimensions. "Terror in Turkey to end, worry and fear of terrorism to go away, we take necessary steps to do this. There are many other dimensions. There are meetings with countries of the region and diplomacy. The coming weeks, the work will be intensive. There are foreign travels and meetings. There would be some contacts with Iran, Iraq and Syria in stopping the violence coming in from the North of Iraq. The visits also include northern Iraq as well. Prime Minister Recep Tayyip Erdogan's visit to Iraq on Thursday comes amid these developments. He will be accompanied by ministers and businessmen and will meet Iraqi President Jalal Talabani, Iraqi vice presidents and Prime Minister Nuri al-Maliki. Also, the First Council of Ministers Meeting of the Turkey-Syria High Level Strategic Cooperation Council will be held in Damascus, Syria on October 13. Turkish Foreign Minister Ahmet Davutoglu, Energy and Natural Resources Minister Taner Yildiz and Interior Minister Besir Atalay are among the Turkish ministers who will attend the meeting. A signature ceremony will take place at the Turkish-Syrian border on mutual visa exemption. -------------------------------------------------------------------------------------------------------------- Turkey to start regional diplomacy within "Kurdish opening" Friday, 09 October 2009 16:31 World Bulletin / News Desk ------------------------------------------------------------ Minister Atalay met with representatives of civil society organizations in mainly Kurdish of Diyarbakir to explain the government's Kurdish opening. Interior Minister said Turkey would start regional diplomacy within "Kurdish opening" to stop PKK violence and eradicate the underlying problems of local Kurds in these countries to make it easier to return to normal life. Specifying the government efforts to work with all sections of society for "Kurdish opening" initiative, Interior Minister Besir Atalay said "the responsibility falls to everyone who are rational and reasonable." Minister Atalay met with representatives of civil society organizations in mainly Kurdish of Diyarbakir for breakfast to explain the government's "democratic opening," an official word that refers to "Kurdish opening". In his speech, Atalay said they have been working on the democratic initiative for a while and AK Party government is taking steps forward for increasing standards of democracy in the country. Saying they took an initiative and the Assembly gave an overwhelming support to this project, Atalay stated the initiative is a step further for establishing a "fraternal atmosphere". Atalay was assigned with the coordination of government's "democratic opening" task and he visits Diyarbakir as an effort to explain the plans and listen to opinions of different sections. Talking about his previous meetings with experts and NGOs, Atalay said in order to


listen all opinions, he will talk to civil society organizations, experts and citizens on the streets in Diyarbakir and other cities. Atalay said they seek a broad consensus and the government has the responsibility for the execution of this initiative. Atalay continued as follows: "(It is a) sincere, determined and brave work. We, as the government, show our commitment, but we also make a call; "everyone, lets assume responsibility." "This is not only the AK Party's, or our government's problem. This is a problem for our country, for everyone who lives here, for each organization and party. Let's finish this. Responsibility falls to everyone," he said. "Our people yearn for peace, want a normal life." Two main targets Indicating that democratic opening task has "two special primary goal", Interior Minister Besir Atalay said: Atalay also said that the matter has security, intelligence, diplomatic and economic dimensions. "Terror in Turkey to end, worry and fear of terrorism to go away, we take necessary steps to do this. There are many other dimensions. There are meetings with countries of the region and diplomacy. The coming weeks, the work will be intensive. There are foreign travels and meetings. There would be some contacts with Iran, Iraq and Syria in stopping the violence coming in from the North of Iraq. The visits also include northern Iraq as well. "The expansion of democracy inside the country ... Turkey became a more open society. Turkey became a country that everyone is more free, a country where human rights are expanding. Many steps have been taken in 7 years. New ones are added to these steps." Atalay said they seek "big support" from the society and the General Assembly. The meeting betwwen NGOs and Minister Atalay continued closed to the press after the speech. Meanwhile, Prime Minister Recep Tayyip Erdoğan sent a letter to the Republican People's Party leader Deniz Baykal for arranging a meeting on the democratic drive. Baykal refused to back the opening. Main opposition leader's answer is being awaited. ----------------------------------------------------------------------------------------------------------------------- Report: PKK to send 'peace groups' to Turkey Friday, October 16, 2009 HURRIYAT DAILY NEWS ANKARA – Agence France-Presse -------------------------------------------------------- The outlawed Kurdistan Workers' Party, or PKK, will send “peace groups” to Turkey to show a desire to end the 25-year Kurdish conflict without violence, a news agency close to the group reported Friday. A similar initiative failed in 1999 when two groups of PKK militants from Iraq and Europe were arrested and then jailed for belonging to the PKK, which Ankara considers a terrorist organization.


Following a proposal by its jailed leader Abdullah Öcalan, the PKK has decided to send two "peace groups" from northern Iraq, where the PKK has bases, and one from Europe, PKK leadership said in a statement, according to the Firat news agency. The purpose is "to help the advancement of the democratic peace process in Turkey … and prepare a psychological atmosphere for genuine peace," it said. The statement did not say when the groups would arrive. Ankara is preparing fresh reforms to expand the freedoms of the Kurdish community and try to erode support for the PKK, which has waged an armed campaign in the Southeast since 1984. The government, however, rejects dialogue with the terrorist group and has vowed to pursue military action against them. ---------------------------------------------------------------------------------------------------------------------

GEO-STRATEGIC ISSUES President Stresses Importance of Making Caucasus A Cooperation Zone Thursday, 15 October 2009 USAD PUBLICATIONS ------------------------------------------------ Turkish President Abdullah Gul stressed the importance of making the whole region (Caucasus) a cooperation zone. Everybody is exerting efforts to carry Turkish-Armenian relations to an unreturnable process, added Gul who held a reception in honor of Armenian President Serzh Sargsyan after the soccer game between national teams of the two countries in the northwestern province of Bursa on Wednesday. Gul said that they recorded an important development in Turkey-Armenia relations in the last two years. When recalled of the problems in the region, Gul said that it was necessary to consider Caucasus as a whole, and he stressed the importance of cooperation. Commenting on Upper Karabakh issue, Gul said that the issue was taken up on the highest level, adding that it was not like it one year ago. Regarding the same issue, Sargsyan said that Turkish-Armenian relations were more important than Upper Karabakh issue. Following the reception, Sargsyan departed from Bursa for Armenia. Armenian Foreign Minister Eduard Nalbandian also left with Sargsyan. -----------------------------------------------------------------------------------------------------------------------

Turkey urges to take Bosnia's territorial integrity under guarantee Saturday, 17 October 2009 10:38 WORLD BULLETIN ------------------------------------------- Turkish FM underlined late the importance of a strong and stable Bosnia-Herzegovna. The Turkish foreign minister underlined late on Friday the importance of a strong and stable Bosnia-Herzegovna. Turkey's Foreign Minister Ahmet Davutoglu said that a strong and stable Bosnia-Herzegovina was important for both the Balkans and the global stability.


"Election of Bosnia-Herzegovina as a non-permanent member of the United Nations (UN) Security Council is a good example of how strong Bosnia-Herzegovina has become and how much it can contribute to global peace," Davutoglu told Bosnian and Turkish reporters after holding talks in Sarajevo. Davutoglu said he was visiting Bosnia-Herzegovina for three reasons, and enumerated them as bilateral relations, Turkey's assuming the rotating presidency of the Southeast European Cooperation Process, and Bosnia-Herzegovina's undergoing a significant reform process. The minister said Turkey was eager to further improve bilateral relations, and also wanted to exert many efforts to ensure peace and stability in Southeast Europe and the Balkans during its presidency of the Southeast European Cooperation Process. Davutoglu underscored importance of Bosnia-Herzegovina's having a strong political structure taking its territorial integrity and political unity under guarantee, and improving its relations with the European Union (EU) and NATO for this country's security and stability. The Turkish minister said that establishing a political structure that would take the political unity under guarantee, bringing forth a democratic structure in which all ethnic and religious elements would participate, ensuring cultural and ethnic peace, creating an efficient and functional state structure, and establishing relations with NATO and EU would make Bosnia-Herzegovina's unity stronger. "Turkey supports every effort that takes Bosnia's territorial integrity under guarantee," he said. Also, Davutoglu said Turkey thought it was early to close the high representation in Bosnia-Herzegovina. "Of course, we want the representation to be closed as soon as possible and Bosnia-Herzegovina's people to take over all sovereignty, however it is Bosnia-Herzegovina's people who will decide on this matter and the leaders I have met said it is still early for that," Davutoglu also said. Davutoglu later delivered a speech in a conference on "Ottoman Heritage and Muslim Societies in Today's Balkans." ------------------------------------------------------------------------------------------------------------------------ Turkey's FM says EU should consider Bosnia in enlargement strategy Friday, 16 October 2009 15:13 WORLD BULLETIN -------------------------------------------------- Davutoglu arrived in Bosnia-Herzegovina on Friday to hold formal talks Turkish Foreign Minister Ahmet Davutoglu arrived in Bosnia-Herzegovina on Friday to hold formal talks. Davutoglu will meet Haris Silajdzic, member of the presidency of Bosnia and Herzegovina, and EU's Special Representative for Bosnia and Herzegovina Valentin Inzko, as well as leaders of political parties. Before his departure for Sarajevo, Davutoglu told reporters at Esenboga Airport in Ankara that he was paying a series of visits to Balkan countries. "Balkan region is of great importance for Turkey," he said. "We have busy schedule for Balkan countries," Davutoglu said.


EU Commissioner for enlargement Olli Rehn was expected to visit Turkish capital of Ankara next week to hold talks on Bosnia-Herzegovina, Davutoglu said. "This country is the key one for security of Balkans," he said. Davutoglu said EU's last visa policy disappointed Bosnia-Herzegovina. The EU proposed on July 15 to lift visa procedures for Western Balkan countries including Serbia, Montenegro and Macedonia by the end of this year, but excluded Bosnia-Herzegovina, Albania and Kosovo out of this process. Davutoglu said Turkey always advocated that EU should review its enlargement strategy by considering Bosnia- Herzegovina. --------------------------------------------------------------------------------------------------------------------- Turkey urges to take Bosnia's territorial integrity under guarantee Saturday, 17 October 2009 10:38 WORLD BULLETIN ---------------------------------------------- Turkish FM underlined late the importance of a strong and stable Bosnia-Herzegovna. The Turkish foreign minister underlined late on Friday the importance of a strong and stable Bosnia-Herzegovna. Turkey's Foreign Minister Ahmet Davutoglu said that a strong and stable Bosnia-Herzegovina was important for both the Balkans and the global stability. "Election of Bosnia-Herzegovina as a non-permanent member of the United Nations (UN) Security Council is a good example of how strong Bosnia-Herzegovina has become and how much it can contribute to global peace," Davutoglu told Bosnian and Turkish reporters after holding talks in Sarajevo. Davutoglu said he was visiting Bosnia-Herzegovina for three reasons, and enumerated them as bilateral relations, Turkey's assuming the rotating presidency of the Southeast European Cooperation Process, and Bosnia-Herzegovina's undergoing a significant reform process. The minister said Turkey was eager to further improve bilateral relations, and also wanted to exert many efforts to ensure peace and stability in Southeast Europe and the Balkans during its presidency of the Southeast European Cooperation Process. Davutoglu underscored importance of Bosnia-Herzegovina's having a strong political structure taking its territorial integrity and political unity under guarantee, and improving its relations with the European Union (EU) and NATO for this country's security and stability. The Turkish minister said that establishing a political structure that would take the political unity under guarantee, bringing forth a democratic structure in which all ethnic and religious elements would participate, ensuring cultural and ethnic peace, creating an efficient and functional state structure, and establishing relations with NATO and EU would make Bosnia-Herzegovina's unity stronger. "Turkey supports every effort that takes Bosnia's territorial integrity under guarantee," he said. Also, Davutoglu said Turkey thought it was early to close the high representation in Bosnia-Herzegovina. "Of course, we want the representation to be closed as soon as possible and Bosnia-Herzegovina's people to take over all sovereignty, however it is Bosnia-Herzegovina's


people who will decide on this matter and the leaders I have met said it is still early for that," Davutoglu also said. Davutoglu later delivered a speech in a conference on "Ottoman Heritage and Muslim Societies in Today's Balkans." --------------------------------------------------------------------------------------------------------------------- EU's problems cannot be solved without Turkey" Saturday, 17 October 2009 15:59 TIME TURK ---------------------------------------------------- Turkey's European Union (EU) chief negotiator said on Saturday that the EU could not solve its problems without Turkey. Turkish State Minister Egemen Bagis said that the problems EU was facing today could not be solved without Turkey's membership. "Turkey's EU membership process cannot last for 20-30 years," Bagis told reporters after meeting Pierre Lellouche, the French Secretary of State for European Affairs, in Istanbul. Both ministers are participating in the Sixth Bosphorus Conference on "Turkey and the EU: Regaining Momentum." The British Council, Delegation of the European Commission to Turkey, and the Foundation for Economic and Social Studies of Turkey (TESEV) are jointly organizing the high-level conference on October 16-17. "If Turkey gets prepared for this big appointment, the political conjuncture will make Turkey's membership obligatory because the problems the EU is facing today cannot be solved without Turkey's membership," Bagis said. Bagis defined the recent progress report, released by the European Commission, as the most comprehensive report that appreciated Turkey's reforms so far. Also, Bagis said that he would visit the Greek capital of Athens on November 5 under the instruction of Prime Minister Recep Tayip Erdogan and hoped that Turkish-Greek relations would be revived. Bagis said that Turkish and Greek governments were backed by their peoples, which he defined as an opportunity to boost bilateral relations and friendship. Also speaking to reporters, Lellouche said that France told Turkish President Abdullah Gul during his visit to Paris that it had mobilized for fighting against the terrorist organization PKK together with Turkey. Lellouche also said that France had caught many links of the terrorist organization PKK, which enhanced Turkish-French relations. The French secretary said Egemen Bagis and he decided to set up a working group to boost bilateral relations.Lellouche said Turkey should go on its membership negotiations with the EU. Eight chapters related with Cyprus were under Turkey's responsibility, except the five chapters blocked by France, he said. Lellouche also said France was a friend of Turkey, and there was no Turkish enmity in France. The secretary said one million French people were visiting Turkey every year, and France was the second country investing in Turkey. Also, Lellouche defined Gul's visit to France as a turning point, and suggested that two


countries should cooperate more. Lellouche said that no one could guess about the day when Turkey's EU accession process would be completed.The French secretary said there was an independent institution in France that was dealing with asylum request of Turkish businessman and politician Cem Uzan. Lellouche said France was a state of law, and a decision about individual asylum should not be regarded and perceived political. Turkey became an EU candidate country in December 1999. The union launched accession talks with Turkey on October 3, 2005 ------------------------------------------------------------------------------------------------------------------------ Turkey's EU process to "never be interrupted" Saturday, 17 October 2009 10:22 WORLD BULLETIN ------------------------------------------------------ The Turkish finance minister said latethat Turkey's EU process would never be interrupted. Saturday, 17 October 2009 10:22 The Turkish finance minister said late on Friday that Turkey's European Union (EU) process would never be interrupted. Turkey's Finance Minister Mehmet Simsek said even if reforms were decelerated, Turkey's EU process would not be interrupted. "Our government is obsessively committed to EU membership," Simsek said during the gala dinner of the Sixth Bosphorus Conference in Istanbul. The British Council, Delegation of the European Commission to Turkey, and the Foundation for Economic and Social Studies of Turkey (TESEV) have jointly organized the Sixth Bosphorus Conference on "Turkey and the EU: Regaining Momentum." Simsek said Turkish society believed it deserved EU membership, and Turkey was a richness, not a burden for the union. The minister said there were steps to be taken in human rights and rule of law, but also the EU should assume a role to speed up the accession process. Simsek said he could say that reforms had slowed down, but assured the participants that Turkey would close the gap. "The EU should be more encouraging, so that we can convince Turkish public to adopt the changes," he said.Simsek said Turkey was still heading to the EU despite negative development, and defined the journey as a long one.The minister also said that what was important was the result of the game, the final score. Turkey became an EU candidate country in December 1999. The union launched accession talks with Turkey on October 3, 2005.This high-level conference is taking place in Istanbul on October 16-17. The main seminar on the 17th will emphasise frank, off-the-record discussion of some of the most important and controversial aspects of EU-Turkey relations. Among the participants of our previous five highly acclaimed conferences were Abdullah Gul, Ali Babacan, Mehmet Simsek, Olli Rehn, Carl Bildt, Maxime Verhagen, Lord Kinnock, Geoff Hoon, Peter Mandelson, Joost Lagendijk, Lord Hannay, Ahmet Davutoglu, Dominique Moïsi, Andrew Duff and many other senior figures to discuss the politics and economics of Turkish accession.


------------------------------------------------------------------------------------------------------------------------ Bagis says Turkey still pays gih efforts for EU bid Saturday, 17 October 2009 09:25 WORLD BULLETIN ------------------------------------------ Turkish State Minister said the recent EU Progress Report on Turkey affirmed progress in at least 11 chapters. Turkish State Minister and Chief Negotiator for EU talks, Egemen Bagis, said Friday the recent EU Progress Report on Turkey affirmed progress in at least 11 chapters. "The waves are currently high but we continue to swim," Bagis stressed. Speaking at the inauguration of the Sixth Bogazici Conference in Istanbul, Bagis said that in its history of around 1,000 years, Turkey has always turned its face towards the west. We came from Central Asia and went up to the gates of Vienna. Now, we are at Brussels' gates but for a peaceful goal, Bagis said. The EU is the engine of change in Turkey. There are still many things to be done and many are being done presently, Bagis noted. Touching on the issue of Cyprus, Bagis said that Turkey expects the EU to begin direct trade with Northern Cyprus after which Turkey would open all of its ports (for Greek Cypriot vessels). We should support and encourage both presidents (Mehmet Ali Talat and Demetris Christofias) in Cyprus, Bagis also said. ----------------------------------------------------------------------------------------------------------------------------------------------- German parties won’t rule out Turkey’s EU bid Thursday, October 15, 2009 HURRIYAT DAILY NEWS BERLIN - From wire dispatches ------------------------------------------------------------------ With preparations to form a coalition government are ongoing, German parties have agreed not to include an article ruling out Turkey’s EU accession bid. It is expected that the deal will contain language similar to that included in Merkel's 2005 coalition agreement with the Social Democrats As the coalition negotiations for the next government heat up in Germany, a tiny conservative party’s bid to insert an article in the new agreement expressing opposition to Turkey's EU aspirations has faced objection from business-friendly partners. Merkel’s conservative camp and the Free Democrats, or FDP, have agreed not to rule out Turkish membership in the European Union in their coalition agreement, sources from both camps said Thursday. The sources said the deal between the parties was likely to contain language similar to that included in Merkel's 2005 coalition agreement with the Social Democrats, or SPD, Der Spiegel, Germany’s weekly magazine, reported. “If the EU is not in a position to take on new members or Turkey cannot fully meet all the criteria necessary for membership, Turkey must be bound closely to European structures in a way that allows its privileged relationship with the EU to develop further,” the parties said in the document.


The EU unanimously agreed to open official accession talks with Turkey in 2005, shortly before Merkel took office. Her conservative bloc opposes the bid and she has said repeatedly that Ankara should be offered a “privileged partnership” that stops short of full membership. Turkey has long rejected this notion, saying its ultimate goal is to become a full member in the 27-member club. The previous German government – called the Grand Coalition – had been openly sympathetic to Turkey’s EU bid due to the participation of the Social Democrat Party, or SPD. Conflicting remarks: Meanwhile, the deal between the center-right parties that won a parliamentary majority in last month's German election represents a defeat for Merkel's Bavarian allies, the Christian Social Union, or CSU, the staunchest opponents of the Turkish bid. “For us it is clear: The new coalition agreement must state explicitly that full EU membership for Turkey cannot be approved,” CSU General Secretary Alexander Dobrindt told the Munich paper Münchner Merkur just before the compromise was reached. Chairman of the Bundestag committee for foreign affairs from CDU, Ruprecht Polenz, defended the stance against the CSU and said, “In a coalition treaty, you cannot just walk away from a process that the previous administration has legally initiated – in this case the open ended negotiations with Turkey towards EU membership.” The FDP, whose leader Guido Westerwelle is likely to take over as Germany's foreign minister, does not strictly oppose the bid, even if his party has cited "major deficits" in Turkey's efforts to meet EU criteria. “The question [of Turkey’s accession] won’t be decided within the next four years, therefore we do not need to negotiate it at this point,” Westerwelle was quoted as saying by Die Zeit. Still, the CSU has pushed for stronger language in the coalition text, which will serve as a blueprint for the new government, expected to be in place by next month. ------------------------------------------------------------------------------------------------------------------------ The EU Publishes Turkey's Progress Report Thursday, 15 October 2009 USAD PUBLICATION --------------------------------------- On 14 October 2009, the Commission published its 2009 Progress Report for Turkey. The report covers a review of the progress made by Turkey in the last 12 months and the main political reviews of Turkish domestic issues are given a general framework to understand what has happened in Turkey for 12 months in terms of accession process. While the investigations into Ergenekon, the alleged criminal network, are seen as a positive development by the Commission, which says that "[t]his case is an opportunity for Turkey to strengthen confidence in the proper functioning of its democratic institutions and the rule of law," the case for closure of the Democratic Society Party, which is still pending before the Constitutional Court, is criticized in terms of democracy and the rule of law. According to the report, the political and societal debate on constitutional reform should be continued, but a consensus, which is important to go a step further, is needed. Another point in the report is the efforts of the President in the confrontational political environment to reach a consensus on the key points in the reform process, these are seen


as quite positive. In terms of public administration, the report says that "considerable further efforts are needed, in particular on the modernisation of civil service." The Armed Forces are also criticised in the report and it is argued that "the armed forces have continued to exercise undue political influence via formal and informal mechanisms."� The reforms process in the area of judiciary is encouraged by the Commission; however, the report also points out that "these efforts need to be continued, and concerns remain with regard to the independence, impartiality and effectiveness of the judiciary, such as the composition of the High Council of Judges and Prosecutors and the establishment of the regional courts of appeal."� In the report, Turkey is criticised in terms of fighting corruption. The report asserts that "Turkey needs to finalise an anti-corruption strategy and to develop a track record of investigations, indictments, prosecutions and convictions."� The report argues there are positive developments in line with international human rights law, but according to the Commission, "further efforts are needed in strengthening the institutional framework on human rights, in particular as regards the establishment of an independent human rights institution and of an Ombudsman."� Moreover, despite the comprehensive legal measures against torture and ill-treatment, there are many problems in practice to implement zero-tolerance against torture policies. Additionally, the report says that access to justice is not a problem in urban areas but "there have been problems in rural areas." The report also points out that Article 301 of the Turkish Criminal Code is no longer systematically used against freedom of expression but "Turkish law does not sufficiently guarantee freedom of expression in line with the ECHR and the ECtHR case law."� The high fines against Dogan Media Holding is also discussed under the freedom of expression issue and according to the report, "the high fines imposed by the revenue authority potentially undermine the economic viability of the Group and therefore affect freedom of the press in practice."� The report criticizes Turkey about the weak measures to protect women's and children's rights and there should be active policies and concrete measures. For example, "efforts need to be stepped up further in all areas related to children's rights, including administrative capacity, health, education, the juvenile justice system and child labour." Another criticism against Turkey is about labour rights and trade unions. The Commission underlines that "the current legal framework, including the constitutional provisions on trade union rights“ is not in line with EU standards and ILO Conventions, especially in regards to the "right to organise, the right to strike and the right to bargain collectively, for either the private or public sectors."� The minority policy of Turkey is not viewed as enough, and according to the report, "full respect for and protection of language, culture and fundamental rights, in accordance with European standards have yet to be fully achieved."� Contrary to this policy, progress in the cultural rights are deemed as quite positive. For example, TRT6, a Kurdish broadcasting TV channel, is given as a good example. The situation in Eastern and South-Eastern Turkey is specifically discussed in the report and according to the report, "despite continuing terrorist violence; the government has opened a wide-ranging public debate -covering cultural, political and economic matters- on the Kurdish issue."� However, the Commission thinks that concrete measures should


be followed with these attempts. The recent domestic political condition of Turkey is clearly investigated in the report and it is apparent that this report will directly or indirectly affect the following domestic policies in Turkey. ----------------------------------------------------------------------------------------------------------------------- Turkey's PM praises EU progress report as "best" Friday, 16 October 2009 10:57 WORLD BULLETIN Erdogan said that this year's progress report was the most ideal one since the Justice & Development Party started governing the country. The Turkish prime minister defined on Thursday the report on the progress made by Turkey on road to the European Union (EU) as "the best" since his party came to the ruling. Turkey's Premier Recep Tayyip Erdogan said that this year's progress report was the most ideal one since the Justice & Development (AK) Party started governing the country. "In my opinion, it is a well-thought, very well and well-examined progress report," he told reporters on his way back from Iraq to Turkey. Also, Erdogan referred to his visit to Iraq and said that Turkey was planning to open a consulate in the northern Iraqi city of Irbil. "Ministers and businessmen will go to the north of Iraq in coming days," he said. Erdogan said this step would be the beginning of a new process in countering terrorism. The premier said the security agreement signed between Turkey and Iraq envisaged a common stance on fight against terrorism within the framework of international law and in respect to each other's territorial integrity. Also, Erdogan defined the decision of the United States to declare three top members of the PKK as drug traffickers and freeze their assets as an important development. Erdogan also said the primary step was to prevent terrorists to climb to mountains, and the secondary was to encourage them to come down from the mountains. Prime Minister Erdogan paid one-day visit to Iraq on Thursday, and met vice president Adil Abd al-Mahdi and Tariq al-Hashimi of Iraq, Iraqi Premier Nuri al-Maliki, and Iraqi Parliament Speaker Ayad al-Samarraie in Baghdad. Turkish and Iraqi officials signed several memoranda of understanding on many areas from security to energy. ---------------------------------------------------------------------------------------------------------------------- "Close friends" Turkey, Macedonia boost ties Saturday, 17 October 2009 09:56 WORLD BULLETIN --------------------------------------------------- President Gul and his wife Hayrunnisa Gul hosted a banquet in honor of President Gjorge Ivanov and his wife Maya Ivanov.


Turkish President Abdullah Gul said that Turkey was the closest friend of Macedonia, and proved its friendly ties by becoming the first country which recognized Macedonia with its constitutional name and nation. President Gul and his wife Hayrunnisa Gul hosted a banquet in honor of President Gjorge Ivanov and his wife Maya Ivanov, who are currently in Ankara on a state visit, at the Cankaya Presidential Palace. President Gul said at the banquet that there had been great historical and cultural ties between Turkish and Macedonian peoples. "Macedonia takes place in the heart of the Balkans in which we want to ensure stability and prosperity. We wish that Macedonia will contribute this process by integrating with European-Atlantic institutions. Turkey is the closest friend of Macedonia, and proved its friendly ties by becoming the first country which recognized Macedonia with its constitutional name and nation," he said. President Ivanov, on his part, said that his country attached great importance to development of relations and cooperation with Turkey. He added that they considered Turkey a unique friend, a powerful supporter and ally and partner. Mutual culture centers will be opened in Istanbul and Skopje. ----------------------------------------------------------------------------------------------------------------------

Turkey rejects Israel Nato exercise Sunday, 11 October 2009 10:12 TIME TURK ---------------------------------------------------------- The Israeli military says Ankara has prevented an annual air force drill in Turkey from taking place because of its demand that there be no Israeli participation The annual drill was scheduled to begin on Monday, 12th October, with air forces from the US and Italy. But according to the Israeli Haaretz newspaper, both Washington and Rome withdrew their participation following Turkey's request to ban Israel from the exercise. The Israeli military said in a statement that the drill was delayed "indefinitely" because of Turkey's decision ... "not to allow the Israeli air force to take part". Relations between the two countries have deteriorated sharply since Israel's winter war on Gaza, when Turkey was denounced Israeli conduct during the war. And Ahmet Davutoglu, the Turkish foreign minister, cancelled his visit to Israel in September after Israel denied his request to visit the Gaza Strip from Israeli territory. ------------------------------------------------------------------------------------------------------------------------

TV row brings new twist to mounting Turkey-Israel tension Friday, 16 October 2009 16:48 Todays Zaman ----------------------------------------------------------------------- Recep Tayyip Erdoğan reiterated yesterday that Israel's exclusion from a multinational military exercise was due to the Turkish public's concerns about the Israeli treatment of Palestinians, as the tension with the Jewish state appears to be escalating wi


“I cannot just set aside the demands of my people,” Erdoğan told reporters in response to a question during a press conference ahead of his departure for an official visit to Baghdad, adding that heeding public opinion on this issue was an “obligation” for his government. “Turkey is a powerful country which makes its decisions on its own. Turkey doesn't make decisions based on some others' advice or orders,” he added. Israel has extensive defense ties with Turkey, a NATO member and one of the few Muslim nations to have built an alliance with the Jewish state. Yet tension prevails in the ties between Israel and Turkey, particularly since Ankara's harsh criticism of Israel's three-week offensive in the Hamas-ruled Gaza Strip in December and January. Earlier this week, Erdoğan recalled once again in an interview with the Al Arabiya News Channel that Israel killed 1,500 people, including women and children, in Gaza and destroyed schools and hospitals. Amid the tense atmosphere between the two countries, a Turkish TV series that portrays Israeli soldiers murdering children has reportedly added insult to injury, with Israel's foreign minister ordering Israeli Foreign Ministry officials to summon the deputy chief of the mission at the Turkish Embassy in Israel to the ministry in order to make a formal protest regarding the series. A statement released by the Israeli Foreign Ministry on Wednesday quoted Foreign Minister Avigdor Lieberman as saying the program, screened by Turkish state TV, constituted incitement against Israel “at the most grave level.” Israeli TV screened a clip from the series on Wednesday evening. It showed an actor dressed as an Israeli soldier taking aim at a smiling young girl and shooting her in the chest at point-blank range. Israeli army radio said the show, about the tribulations of a Palestinian family, was aired on Tuesday on the state-run TRT 1 and also depicted troops killing a Palestinian newborn delivered after its mother went into labor at an Israeli roadblock. “A series like this, which has not the slightest connection with reality, which presents Israeli soldiers as the murderers of innocent children, would not be appropriate for broadcast even in an enemy country and certainly not in a state which maintains diplomatic relations with Israel,” Lieberman said in the statement. US says it worked for postponement of exercises The United States and Italy were scheduled to take part in the exercise, called “Anatolian Eagle,” which has become the subject of controversy. Both countries withdrew their participation from the drill after learning Israel had been excluded, Israeli newspaper Haaretz suggested earlier this week, citing Israeli Foreign Ministry sources. Yet, Washington said on Wednesday that the United States worked with participating governments last week to postpone the upcoming exercise. “We certainly value a broad range of important military cooperation with Turkey ... we certainly have every intention of continuing to foster even closer cooperation in the future. The next iteration of that is planned to be a bilateral exercise between Turkey and the US … in the spring of 2010,” Pentagon Press Secretary Geoff Morrell told reporters during a press briefing. When asked why the US was interested in canceling or postponing the exercise, Morrell said: “Well, there was a decision made by the government of Turkey to change the concept of the scenario in a way that would not enable the US to participate. I mean, frankly speaking, Israel was removed from the


exercise, from the list of participating nations, and the US government believes it is inappropriate for any nation to be removed at the last minute.” ---------------------------------------------------------------------------------------------------------------------- Davutoğlu: Turkey is not a country that censors WORLD BULLETIN

Friday, October 16, 2009 ISTANBUL – Daily News with wires -------------------------------------------------------- Foreign Minster Ahmet Davutoğlu on Friday responded to complaints from Israel about the depiction of Israeli armed forces in a Turkish television series on a state-run channel. “There is no censorship in Turkey,” Davutoğlu said in a press conference Friday before he departed for Bosnia, according to broadcaster CNNTürk. “TRT [Turkish Radio and Television Corporation] is an autonomous institution. The television series’ producers are also an independent company. It is not in the ministry’s mandate to advise them.” He criticized Israel as the actual source of tension, referring to the country’s attack on Gaza last year. “Turkey has been working toward creating peace in the region, and it was Israel that put our chances of creating peace at risk by attacking Gaza.” He cited women and children suffering the most from the incidents. He recalled that Turkey was mediating between Israel and Syria last year, but said, “We will not be silent about what happened in Gaza,” according to the Anatolia news agency. The Israeli ambassador to Turkey was expected to visit the Foreign Ministry later Friday to express his government’s concerns about the television series. ----------------------------------------------------------------------------------------------------------------------- Turkey not severing ties with Israel, Deputy PM says Friday, 16 October 2009 16:46 WORLD BULLETIN --------------------------------------------------- Turkish Deputy PM Arinc talked about Israel's unesiness over a TV series aired by Turkey's state-run broadcaster TRT. Turkish State Minister & Deputy Prime Minister Bulent Arinc talked about Israel's unesiness over a TV series aired by Turkey's state-run broadcaster TRT and said that Turkish government had no intentions to sever ties with Israel, saying he would soon meet with Israeli Ambassador to dispel concerns."Turkey and Israel have long been in good relations. We have no intentions to break off these relations," Arinc, who is also responsible for TRT, said on Friday. On Thursday, Israel's Foreign Ministry summoned a Turkish diplomat over the new TV series called "Ayrilik" (Separation) which showed soldiers shooting down a smiling Palestinian girl and a Palestinian baby held up by his father above his head. Turkey rules out any censorship against TV series that tells Gaza offensive last year due to Israel. Arinc said TRT was a public broadcasting television service, not a "state TV" as Israeli officials had said, adding that Turkish government can not tell TRT what to do or what not to do. He said TRT bought the TV series from a production company.


"The show does not absolutely contain anti-Semitic materials," he said. "Anti-Semitism is a crime against humanity which we reject." Israel's three-week offensive in the Gaza Strip in December and January killed nearly 1500 Palestinians, including children and women. But, he said, "of course, we fell sorrow about what is going on in Palestine. People in Gaza and Ramallah, whose children die in their hands, concerns us. When people in Lebanon were bombed, we felt sorrow as if those bombs were exploding above our head." Arinc said these were the facts of life and should be filmed. "Besides, the TV series 'Ayrilik' is a drama which eventually will turn into a story of love and peace," he said. Arinc also said that he would soon meet with Israeli Ambassador to Turkey Gabi Levy to tell him Israel should not be worried. ----------------------------------------------------------------------------------------------------------------------- Turkey: Israel must end humantarian crisis in Gaza for better ties Friday, 16 October 2009 11:41 World Bulletin / News Desk ------------------------------------------------------------------ Turkish Foreign Minister Ahmet Davutoglu urged Israel to end the humanitarian tragedy in Gaza. Turkish Foreign Minister Ahmet Davutoglu said on Friday that Turkey could not remain silent regarding the Israeli attacks on Gaza, urging Israel to end the humanitarian tragedy in Gaza. Turkey's ties with Israel have been strained over Israel's three-week offensive in the Gaza Strip in December and January that killed nearly 1500 Palestinians, a third of them were children. Turkey also cannot display a military picture with Israel in such a sensitive atmosphere, added Davutoglu who held a press conference at Ankara's International Esenboga Airport prior to his departure for Bosnia-Herzegovina. "Unfortunately, the Gaza offensive dealt a big blow to peace efforts," in the Middle East, Davutoglu told reporters. When reporters recalled the recent problems between Turkey and Israel, Davutoglu said that Turkey was a mediator between Israel and Syria these times last year, adding that however, Turkey could not remain silent what was happening in Gaza now. Davutoglu said that Turkey wanted children not to get killed and peace to be restored in Gaza. He added that it did not mean being against Israel and it was a humanitarian situation. Commenting on the uneasiness of Israel over a TV series on state-run TRT channel that tells Gaza offensive last year, Davutoglu said that TRT was an autonomous institution, and his ministry had not given any official consultation regarding the TV series. "When there is a return to the track of peace, these relations of trust (with Israel) will be re-established on the same level as before," he said. "Ending the humanitarian tragedy in Gaza, reviving peace efforts — both on the Palestinian and Syrian track, and most importantly — reinstating a prevailing spirit of peace in the region... this is what we want," he said. A U.N. report last month found that Israel "punished and terrorised" civilians in Gaza in a disproportionate attack in its three-week war on the territory earlier this year. Israeli forces deliberately attacked civilians, failed to take precautions to minimize loss of


civilian life and cited strong evidence Israeli forces committed "grave breaches" of the Geneva Convention, the 575-page report noted. Israel has rejected a cooperation with the Goldstone team or had not allowed it onto its territory. The firing of white phosphorous shells and the use of high explosive artillery shells were listed as "violations of humanitarian law." The report also said UN Security Council should refers Israel - If it fails to probe crimes properly- to the International Criminal Court (ICC) prosecutor in The Hague within six months. Gaza is also considered under Israeli occupation as Israel controls air, sea and land access to the Strip. The Rafah crossing with Egypt, Gaza's sole border crossing that bypasses Israel, rarely opens as Egypt is under immense US and Israeli pressure to keep the crossing shut. Human rights groups, both international and Israeli, slammed Israel's siege of Gaza, branding it "collective punishment." Bosnia visit Davutoglu visits two Balkan countries Albania, and Bosnia and Herzegovina in the next two days, Anadolu news agency reported. In Bosnia, Davutoglu will meet Haris Silajdzic, member of the presidency of Bosnia and Herzegovina, and EU's Special Representative for Bosnia and Herzegovina Valentin Inzko, as well as leaders of political parties, Turkish Ministry of Foreign Affairs said in a statement. He will also inaugurate a cultural center and deliver a speech at a conference on "Ottoman heritage and Muslim communities in today's Balkans", the statement said. In Albania, Davutoglu will have meetings with President Bamir Topi, Prime Minister Sali Berisha, Foreign Minister Ilir Meta, and Parliament Speaker Jozefina Topalli, it said. ------------------------------------------------------------------------------------------------------------------------

Turkey's General Staff meets Pakistani top officials in Swat Friday, 16 October 2009 14:51 WORLD BULLETIN ------------------------------------------ Basbug visited Pakistan's troubled Swat district during his formal talks in this country, Turkish military spokesman said on Friday Turkey General Staff Chief General Ilker Basbug visited Pakistan's troubled Swat district during his formal talks in this country, Turkish military spokesman said on Friday. Spokesman General Metin Gurak told a weekly press briefing that Basbug paid a three-day visit to Pakistan from October 12 to 15. Basbug met with Pakistan's President Asif Ali Zardari, Chief of General Staff Gen. Tariq Majid and Commander of Land Forces Gen. Ashfaq Parvez Kayani, Gurak told reporters. Basbug also made a speech at a conference at the National Defense University. Gen. Gurak also said that Hungarian Chief of General Staff would pay a visit to Turkey on October 19 as the formal guest of General Basbug. ------------------------------------------------------------------------------------------------------------


------------ Turkish police searches TV channel in chairty fraud case Friday, 16 October 2009 11:29 Turkish police are searching several places in the city of Istanbul regarding a German charity case. Turkish police are searching several places in the city of Istanbul regarding a German charity case. The Ankara Chief Prosecutor's Office has launched an investigation into the German "Deniz Feneri e.V." charity, and police have raided 17 different places in Istanbul's Fatih neighborhood. Among the searched places are the office of private Kanal 7 tv channel, a depot belonging to the charity, film production companies, and accounting offices. Police have examined financial records and the computers of executives of Kanal 7, and copied the hard discs of computers. No one has been detained in the operation so far. Police will hand over the seized documents to Ankara Chief Prosecutor's Office. In September 2008, a German court convicted three Turks of fraud for drawing off donations and using them for other purposes outside charity. The Frankfurt State Court sentenced the three men working for the charity Deniz Feneri e.V in Germany to prison terms. The court sentenced Mehmet Gurhan to 5 years and 10 months, Mehmet Taskan to 2 years and 9 months. Firdevsi Ermis was sentenced to one year and 10 months, which was suspended on probation. ---------------------------------------------------------------------------------------------------------------------- Kazakh President to visit Turkey to meet leaders Friday, 16 October 2009 11:15 WORLD BULLETIN ---------------------------------------------- Turkey is among the first countries recognizing Kazakhstan's independence. The president of Kazakhstan will pay a visit to Turkey next week. Kazakh President Nursultan Nazarbayev will arrive in Turkey on October 21 on a three-day visit. Nazarbayev, who wants to speed up relations with Turkey particulary in areas of tourism, education, trade and industry, will be accompanied by 200 businessmen and several ministers. The Kazakh president will hold talks in the Turkish capital of Ankara and city of Istanbul, and meet Turkish President Abdullah Gul and Prime Minister Recep Tayyip Erdogan. Nazarbayev will address the Turkish parliament, and attend the Turkish-Kazakh Businessmen's Forum in Istanbul on October 23. Also, "Almaty Culture Days" will be held in Istanbul to promote Kazakh culture and music to Turkish people on the sidelines of Nazarbayev's visit. Nazarbayev is expected to depart from Turkey on October 24.


Turkey is among the first countries recognizing Kazakhstan's independence. -------------------------------------------------------------------------------------------------------------------- Turkey's PM: Armenia deal approval linked to Karabakh pullout Sunday, 11 October 2009 14:55 WORLD BULLETIN ---------------------------------------------- Erdogan says Turkey would not look favourably on the accords, signed in Zurich on Saturday, unless Armenia withdraws from Azerbaijani land. Turkey's Prime Minister Tayyip Erdogan said on Sunday that Armenia must withdraw from Nagorno-Karabakh in Azerbaijan to assure his parliament's approval for a peace accord signed between Turkey and Armenia. "Turkey cannot take a positive step towards Armenia unless Armenia withdraws from Azerbaijani land...if that issue is solved our people and our parliament will have a more positive attitude towards this protocol and this process," Erdogan told a party congress in Ankara. "We will bring the protocol to parliament but parliament has to see the conditions between Azerbaijan and Armenia to decide whether this protocol can be implemented," Erdogan said. Erdogan said earlier this year he would not open the border until Yerevan ended its occupation of Azerbaijan. Azerbaijan on Sunday criticised Turkey-Armenia deal to normalise ties, warned against unilateral opening of the Turkish-Armenian border without any progress on Armenia-occupied Karabakh region. Turkey and Armenia have no diplomatic ties or economic relations since Armenia declared its independence in 1991 and Turkey closed its border with Armenia in 1993 after this country invaded the Upper-Karabakh region of Azerbaijan. In July 2008, the then Turkish Foreign Minister Ali Babacan expressed Turkey's willingness to normalize relations with Yerevan. Turkish President Abdullah Gul travelled to Armenia in September 2008 to watch the 2010 FIFA World Cup qualifier match between the two countries upon an invitation by President Serzh Sargsyan of Armenia. After months-long Swiss mediated talks, Turkey and Armenia agreed about a month ago on a protocol to establish relations and open the border. Azerbaijani and Armenian officials are also holding talks for over a year to find a settlement to the Upper Karabakh dispute. Gul invited Sargsyan to watch the return match in Turkey on October 14. However, It is still unclear whether Sargsyah will travel to Turkey. ---------------------------------------------------------------------------------------------------------------- Turkey's Gul makes first comment after Armenia deal Sunday, 11 October 2009 15:20 WORLD BULLETIN ------------------------------------------------- Turkish President Gul said, "we aim at creating an atmosphere of confidence and stability in Caucasus.


Turkish President Abdullah Gul said about signing of the protocols between Turkey and Armenia, "problems can emerge from time to time. But if intensions and wills are clear, we can come to a conclusion. If we succeed in creating a cooperation environment in whole Caucasus region, we can resolve all security issues." Gul told reporters, "we aim at creating an atmosphere of confidence and stability in Caucasus. After normalization of Turkey-Armenian and Azerbaijan-Armenia relations and putting an en to problems in Georgia, a great cooperation area will emerge." Asked whether President Serzh Sargsian of Armenia would come to Turkey to watch the game, President Gul, "I hope that Mr. Sargsian will come. There is still time ahead of us. I hope that they will come." Turkey, Armenia signed Saturday a protocol on developing relations between their two countries. --------------------------------------------------------------------------------------------------------------------- Turkey's FM tells crisis moments in Armenia deal Sunday, 11 October 2009 13:58 WORLD BULLETIN --------------------------------------------------- The crisis was overcome after both sides agreed not to make remarks after the signature ceremony, Davutoglu said. Turkish Foreign Minister Ahmet Davutoglu said Sunday the crisis experienced yesterday in Zurich prior to the signature ceremony of protocols between Turkey and Armenia was "a procedural matter". Speaking on Turkey's state-run TRT TV channel on Sunday, Davutoglu said that the signing of the protocols was a "crucial step". The protocols are a reflection of Turkey's peaceful vision, Davutoglu stressed. The crisis lived prior to the signature ceremony was a "natural component of the process. The crisis was a procedural issue, Davutoglu said. The crisis was overcome after both sides agreed not to make remarks after the signature ceremony, Davutoglu said. "The crisis had to do with expressions that were to be made during the ceremony". Turkey's perspective is comprehensive peace. This would be possible if all sides reach issues in a just and equal way, Davutoglu noted. Bilateral relations between Turkey and Armenia have entered a new period, Davutoglu said. With this new period, the peoples of Turkey and Armenia will be able to understand each other more accurately, Davutoglu stressed. The solution of the Armenian-Azerbaijani conflict is crucial. Turkey took steps for the solution of the conflict, Davutoglu said. It is out of question for Turkey to leave Azerbaijan alone whatever the conditions may be, Davutoglu said. Since the Kars Treaty, Turkey and Armenia have signed the first different document. The protocol signed defined Turkish-Armenian relations and placed relations within a frame, Davutoglu said. Once the protocols go into effect, relations between Turkey and Armenia will be


normalized. Turkey recognized Armenia as a state and kept its borders open until the occupation in 1993, Davutoglu said. The protocols will facilitate greater cooperation between Turkey and Armenia at international forums and will help end mutual pre-conceived notions in the minds of our peoples, Davutoglu said. Turkey has confidence in itself. The engine of surrounding countries is Turkey, Davutoglu said. We do not want a poor neighbor. Our neighbor should get richer but should have respect for the rights of another neighbor. Occupation in all territories should end. As the macro vision develops, micro crisis lose significance with time, Davutoglu said. The Kars Treaty was one that defined the borders. Such treaties do not lose legitimacy even if the governments do not exist any more. The protocol signed on Saturday has an article that refers to the recognition of the existing borders (between Turkey and Armenia). We have no concerns about the recognition of the borders, Davutoglu also said. ----------------------------------------------------------------------------------------------------------------------- Turkey to send Armenia protocols to Majlis next week Tuesday, 13 October 2009 07:30 WORLD BULLETIN ---------------------------------------- Cicek also said that Turkey had fraternal relations with Azerbaijan, not a relationship based on interests. Turkish government will send the protocols Turkey signed with Armenia to the parliament (Majlis) next week, government spokesman said on Monday. State Minister and Deputy Prime Minister Cemil Cicek, also the government spokesman, said that the government would send the protocols signed with Armenia to normalize relations, to the parliament in the following week. "Foreign Minister Ahmet Davutoglu will inform the parliament regarding the protocols on October 21," Cicek told reporters after the cabinet meeting in the Turkish capital of Ankara. Cicek also said that Turkey had fraternal relations with Azerbaijan, not a relationship based on interests. "No process is more important for us than Turkish-Azerbaijani friendship," Cicek said. Turkey's Foreign Minister Ahmet Davutoglu and his Armenian counterpart Eduard Nalbandian signed two protocols in the Swiss city of Zurich on Saturday. The two protocols were on "the Establishment of Diplomatic Relations Between the Republic of Turkey and the Republic of Armenia" and "the Development of Bilateral Relations between the Republic of Turkey and the Republic of Armenia". The protocol on establishment of diplomatic relations envisages mutual recognition of the existing border between the two countries. Under the protocol, Turkey and Armenia reconfirmed their commitment, in their bilateral and international relations, to respect and ensure respect for the principles of "equality, sovereignty, non-intervention in internal affairs of other states, territorial integrity and inviolability of frontiers". Turkey and Armenia also condemned all forms of terrorism, violence and extremism


irrespective of their cause, pledging to refrain from encouraging and tolerating such acts and to cooperate in combating against them. The protocol on development of bilateral relations aims to facilitate the development of relations between Turkey and Armenia in all fields and took significant steps within this frame. One of the steps has to do with the opening of the Turkish-Armenian border two months after the protocol goes into effect. The two countries have decided to establish committees in various fields and at various levels. An historical sub-committee will be established with the participation of international experts. Turkey and Armenia have no diplomatic ties or economic relations since Armenia declared its independence in 1991 and Turkey closed its border with Armenia in 1993 after this country invaded the Upper-Karabakh region of Azerbaijan. In July 2008, the then Turkish Foreign Minister Ali Babacan expressed Turkey's willingness to normalize relations with Yerevan. Turkish President Abdullah Gul travelled to Armenia in September 2008 to watch the 2010 FIFA World Cup qualifier match between the two countries upon an invitation by President Serzh Sargsian of Armenia. After months-long Swiss mediated talks, Turkey and Armenia agreed about a month ago on a protocol to establish relations and open the border. Azerbaijani and Armenian officials are also holding talks for over a year to find a settlement to the Upper Karabakh dispute. Gul invited Sargsian to watch the return match in Turkey on October 14. Sargsian told reporters earlier on Monday that he would go to the Turkish city of Bursa and support his team, providing nothing extraordinary happened in the following two days. ---------------------------------------------------------------------------------------------------------------------- Turkey's PM urges soccer fans to keep politics away from Armenia game Tuesday, 13 October 2009 16:04 WORLD BULLETIN ---------------------------------------------- Erdogan urged soccer fans to keep politics away from Turkey-Armenia game. Turkish Prime Minister Tayyip Erdogan on Tuesday urged soccer fans to keep politics away when Turkey and Armenia face each other on the pitch in a World Cup qualifier, as the two neighbours aim to restore diplomatic ties. Armenian President Serzh Sarksyan has confirmed his attendance at a World Cup qualifier in Turkey on Wednesday, which will take place days after Ankara and Yerevan signed an accord to end a century of hostility. Turkish leader Abdullah Gul went last year to Yerevan to the first leg of what has been called "soccer diplomacy" between the two countries. "The Armenian president and the Armenian national team will see what Turkish hospitality is," Erdogan told deputies of his ruling AK Party ahead of the game in the city of Bursa. "I know our soccer fans in Bursa and in the rest of the country will behave like respectable fans. I believe our country and the citizens of Bursa will not bow their heads to politics and to the aims of those who want to use the game to achieve something else,"


Erdogan said. Turkish media said authorities will undertake tight security measures to avoid possible provocations during the game. Aksam newspaper said fans would not be allowed to buy tickets for the match, instead authorities would control ticket distribution. The match is seen as another step in normalising ties. As accords were signed on Saturday to establish diplomatic relations and reopen their border, Turkey also demands for progress on Armenia occupied Nagorno-Karabakh. Turkey and Armenia have no diplomatic ties or economic relations since Armenia declared its independence in 1991 and Turkey closed its border with Armenia in 1993 after this country invaded the Upper-Karabakh region of Azerbaijan. Azeri land Karabakh region has been under Armenian occupation in early 1990s in which nearly 30,000 people died and 2 million were forced to flee their homes. Protest in Azerbaijan The governor of Bursa has said Azeri flags will not be allowed into the stadium for the match, media reports said, but Turkish nationalists have made some 10,000 of the flags and are distributing them in the northwestern town. In the Azeri capital Baku, a group calling itself the Karabakh Liberation Organisation held a brief protest near the Turkish embassy, burning pictures of Turkey's Gul, Erdogan and Foreign Minister Ahmet Davutoglu. Protests are rare in the tightly-run republic. Several dozen people took part, shouting "Turkey, don't sell Karabakh to the Armenians", "Karabakh or death" and "Shame on the Turkish leadership", a Reuters reporter said. Police later broke up the demonstration and several people were arrested. The deal needs parliamentary approval in Turkey and Armenia. Sarksyan in particular faces vehement opposition from nationalists at home and the powerful Armenian diaspora abroad. ---------------------------------------------------------------------------------------------------------------- Turkey's PM says to make detailed statement on Armenia protocol Sunday Sunday, 11 October 2009 09:42 WORLD BULLETIN ------------------------------------------------ Erdogan said that a detailed statement would be made after a meeting of AK Party on Sunday. Turkish Prime Minister Recep Tayyip Erdogan said that they would make a detailed statement on Sunday about the protocols signed between Turkey and Armenia in Swiss city of Zurich. Upon questions of journalists, Prime Minister Erdogan said that a detailed statement would be made after a meeting of the Central Executive Board of his ruling Justice & Development (AK) Party on Sunday. --------------------------------------------------------------------------------------------------------------------- Occupied Karabakh will affect Turkey-Armenia ties: senior MP Thursday, 08 October 2009 12:54 WORLD BULLETIN -----------------------------------------------------------


Azeri land has been under Armenian occupation in early 1990s. Lack of progress by Azerbaijan and Armenia towards resolving their dispute over Nagorno-Karabakh would affect Turkey's parliamentary approval of separate accords to normalise ties with Armenia, a senior AK Party MP said. Azeri land has been under Armenian occupation in early 1990s in which nearly 30,000 people died and 2 million were forced to flee their homes. "Lack of progress towards the resolution of Armenian-Azeri problems will certainly affect the parliamentary process," Murat Mercan, chairman of the ruling AK Party parliamentary foreign affairs committee told Reuters late on Wednesday. Azeri President Ilham Aliyev and Armenian Serzh Sarksyana are due to hold talks on Thursday in Moldova. Turkey and Armenia are expected to sign historic accords on Saturday regularising ties. -------------------------------------------------------------------------------------------------------------------- Turkey's National Security Council to meet in Ankara on Oct 20 Monday, 12 October 2009 14:51 WORLD BULLETIN ------------------------------------------------------- Participants are expected to discuss internal and external developments in the meeting. The National Security Council of Turkey will meet in the Turkish capital of Ankara on October 20. The council will hold its regular meeting at the Cankaya Palace under the chairmanship of Turkish President Abdullah Gul. Participants are expected to discuss internal and external developments in the meeting. --------------------------------------------------------------------------------------------------------------------- Syria says to hold military exercises with Turkey Wednesday, 14 October 2009 09:34 TIME TURK --------------------------------------------------- Washington got uneasy with the choice. Syria said on Tuesday it would hold military exercises with Turkey, shortly after Turkey canceled maneuvers with Israel. "We held our first joint land military exercise (with Turkey) last spring. And today we have agreed to do a more comprehensive, a bigger one," said Syrian Defense Minister Ali Habib, speaking at a news conference. Turkey's ties with Israel have been strained over Israel's three-week offensive in the Gaza Strip in December and January that killed nearly 1500 Palestinians, a third of them were children. However, Washington got uneasy with the choice. US State Department spokesman P.J. Crowley described the decision to exclude Israel from the drill as "inappropriate". On the other hand, neighboring Syrian Foreign Minister Walid al-Moualem commended Ankara canceling of the exercises, in comments made during a high-level meeting of Turkish and Syrian ministers. "We extremely welcome that decision. This decision is based on Turkey's approach


towards Israel and reflects the way Turkey regards the Israeli attack in Gaza," Moualem told reporters in the Syrian city of Aleppo, where 10 Turkish minsters met 15 Syrian ministers to discuss energy and electricity projects. Turkey rejected any political motive behind the decision to cancel the exercise with Israel and called on Israel to display "common sense" in their statements. Foreign Minister Ahmet Davutoglu on Tuesday repeated Ankara's position that it had not singled out Israel as a political punishment but had decided to call off the international stage of the military exercises, which would have also included the United States, Italy and NATO. But he told reporters in Aleppo: "Our sensitivity on Gaza, East Jerusalem and al-Aqsa mosque are there. If these sensitivities are taken into consideration the peace process would resume in the region." A senior government source told Reuters Israel had been excluded because of the Gaza offensive, saying it would have been inappropriate to carry out military exercises right now. Once on the brink of war over PKK militants, Turkey and Syria have strengthened their commercial ties and have signed a bilateral visa-free agreement. ---------------------------------------------------------------------------------------------------------------------- Turkey's FM leaves for Syria for first strategic meeting Tuesday, 13 October 2009 16:29 TIME TURK -------------------------------------------------- Davutoglu is accompanied by a delegation of ministers, businessmen, academicians and media corps.Turkish Foreign Minister Ahmet Davutoglu left for Syria on Tuesday to attend ministerial meeting of the Turkey-Syria High Level Strategic Cooperation Council. Davutoglu is accompanied by a delegation of ministers, businessmen, academicians and media corps. State ministers Hayati Yazici and Cevdet Yilmaz, National Defense Minister Vecdi Gonul, Interior Minister Besir Atalay, Health Minister Recep Akdag, Transportation Minister Binali Yildirim, Agriculture & Rural Affairs Minister Mehdi Eker, Energy & Natural Resources Minister Taner Yildiz and Environment & Forestry Minister Veysel Eroglu are accompanying Davutoglu. The first phase of the council meeting will take place in Aleppo and the second phase in the afternoon will take place in southeastern province of Gaziantep. Visa exemption agreement is expected to be signed at the border of the two countries. ------------------------------------------------------------------------------ Turkish Cyprus irritiated by Cyprus article in Progress Report Thursday, October 15, 2009DÖNDÜ SARIIŞIK ANKARA - Hürriyet Daily News ------------------------------------------------------------------------- Turkish Cypriots are offended by the wording of the Cyprus article in the 2009 Turkey Progress Report issued by the European Commission.


“It is irritating and unacceptable because putting pressure on Turkey affects the negotiations in a negative way,” said Hüseyin Özgürgün, foreign minister of Turkish Cyprus. The European Commission's report urged Turkey “to actively support the ongoing negotiations and to take practical steps to contribute to the settlement of the Cyprus problem” and accused it of “keeping its ports closed to vessels from the Republic of Cyprus despite several calls by the EU.” The commission used these expressions influenced by Greek lobbies to ignore the rights Turkey has as guarantor as stipulated in international agreements, Özgürgün told the Hürriyet Daily News & Economic Review in a phone interview. “I think that the European Union still doesn’t understand what is going on in Cyprus or it uses the issue against Turkey on purpose. Greek and Turkish Cypriots are the main interlocutors and Turkey already contributes to a settlement,” he said. In response, Turkey’s chief EU negotiator Egemen Bağış said Turkey’s stance is unchanged. “Those urging Turkey to fulfill its obligations need to implement their own obligations first. We expect only justice. The steps should be taken mutually by lifting isolation of the north and opening direct trade lines.” The critical wording against Turkey complicates and negatively affects the negotiations on the island, Özgürgün said. “Based on such remarks, what are we discussing at the table? The EU cannot ask Turkey to shoulder all responsibility after accepting into the union the side that said ‘no’ to reunification in 2004,” he said. “Now, it makes new mistakes," Özgürgün said in reference to the sentence, “It is now urgent that Turkey fulfils its obligation.” "What is urgent is not Turkey opening its ports to Greek Cypriot planes and ships, but an agreement. That’s why we are sitting at the table,” he said, adding that Greeks keep the north isolated and hinder Turkish efforts to open up negotiations. The Foreign Ministry also issued a statement asking the EU to focus on a fair settlement. “Turkey has repeatedly expressed its full support for the negotiations. We call on the international community, especially the EU to focus on the solution and contribute active support.” “They want a settlement, but we will not give up although there is very little chance of success,” Özgürgün said. Civilian vessels prospecting for oil on behalf of the Republic of Cyprus were hindered by the Turkish Navy on several occasions, the report read. “There is an attitude that Turkey is violating the rights of Greek Cypriots. It is worse than the in the past. What about our rights to natural sources? The Greeks are not the only dominant power in the island. “We are irritated by this approach because the real interlocutor is Turkish Cyprus and they don’t take us seriously in the negotiations. They pretend to hold talks, but their real aim is to get rid of the Turkish military and assimilate Turks. Greek Cypriot (President Dimitris) Christofias confessed it in Qatar.” Özgürgün said there is no hope for progress at the December summit. “It is a delay tactic. The union is not ready to accept Turkey as a full member, but does not want to break off ties. It uses the Cyprus issue as an excuse and this mentality has stunted any progress.” ------------------------------------------------------------------------------------------------------------------------


ECONOMIC ISSUES

Turkey to help Iraq on natural gas Friday, 16 October 2009 09:24 WORLD BULLETIN ------------------------------------- Yildiz said that Turkey would make technical and training assistance to Iraq on natural gas. Turkish Minister of Energy & Natural Resources Taner Yildiz said on Thursday that Turkey would make technical and training assistance to Iraq on natural gas. Yildiz said, "talks in Baghdad regarding energy area were discussed under three main topics; oil, natural gas and electricity". Yildiz said, "a study will be carried out to direct private sector, building natural gas power plants, to Iraq. Pumping of 8 billion cubic meters natural gas from Iraq to Turkey is planned at the first stage." Yildiz said, "Kirkuk-Yumurtalik pipeline has 70 million tone capacity. It currently works with 18 percent capacity. We will make a 15-year agreement about this. Kirkuk-Yumurtalik pipeline is a departure gate for Iraq. We want this pipeline to work in full capacity." ---------------------------------------------------------------------------------------------------------------------- Turkey, Pakistan sign protocol, Erdogan's visit set Friday, 16 October 2009 08:40 WORLD BULLETIN ---------------------------------------------- Turkish Prime Minister Recep Tayyip Erdogan's will pay a formal visit to Pakistan on October 25-26. Turkey and Pakistan aimed to raise the trade volume to 2 billion USD in 2012. Turkish State Minister Mehmet Aydin and Pakistani Minister of Commerce Makhdoom Amin Fahim signed a protocol at the end of 13th Joint Economic Council (JEC) meeting in Islamabad, Pakistan. The protocol envisages two countries to increase their investments and trade. Accordingly, Turkey will encourage investments in construction, finance, transportation, tourism, health, agriculture, energy, science and technology in Pakistan, and lift legal and bureaucratic hurdles before investors. Also, trade delegations will visit each other's countries more often, and Turkey will participate in Pakistani fairs. Turkey and Pakistan also decided to hold JEC meetings when needed, not once a year. The upcoming meeting will take place in Turkey. The annual trade volume between Pakistan and Turkey is actually 740 million USD. Turkey imports goods worth 585 million USD, and exports goods worth 155 million USD to Pakistan. Pakistani President Asif Ali Zardari later received State Minister Mehmet Aydin. During the meeting, Zardari supported the Alliance of Civilizations Initiative, pioneered by Turkey, and welcomed Turkish Prime Minister Recep Tayyip Erdogan's decision to pay a formal visit to Pakistan on October 25-26.


Aydin also met Pakistani minister of housing and works, and ministers of privatization and investment on the last day of his visit to Pakistan.The minister is expected to return to Turkey on Friday. ------------------------------------------------------------------------------------------------------------------- Turkey says wants to boost trade with Pakistan Thursday, 15 October 2009 10:47 WORLD BULLETIN ------------------------------------------------- Aydin said on Thursday that the necessary basis existed for development of economic relations between Turkey and Pakistan. Turkish State Minister Mehmet Aydin said on Thursday that the necessary basis existed for development of economic relations between Turkey and Pakistan. We aim to increase trade volume between Turkey and Pakistan to 2 billion USD by 2012, added Aydin who is currently in Islamabad to attend a meeting of the Turkey-Pakistan Joint Economic Commission. Aydin told A.A that there was a very little decline in Turkey-Pakistan commerce despite the global economic crisis this year. He noted that Turkey bought raw materials from Pakistan, and in return, invested in construction, agriculture, energy and mining sectors in Pakistan. Aydin will depart from Pakistan on Friday. Current trade volume between Turkey and Pakistan is 740 million USD. --------------------------------------------------------------------------------------------------------------------- Turkey's Central Bank reduces interest rate Friday, 16 October 2009 08:16 WORLD BULLETIN ------------------------------------------- Turkish Central Bank reduced its benchmark interest rate by half a percentage point to a record 6.75 percent on Thursday. Turkish Central Bank reduced its benchmark interest rate by half a percentage point to a record 6.75 percent on Thursday. The Monetary Policy Committee has decided to lower the overnight borrowing from 7.25 percent to 6.75 percent, while lending rate was decreased from 9.75 percent to 9.25 percent, the bank said in a statement. Turkey has slashed 10 percentage points from the interest rate over the past year. "Recent data releases indicate that, in line with committee's previous assessments, the ongoing recovery in economic activity will be gradual and protracted," the bank said. "External demand and domestic investment demand remain weak. Moreover,consumption demand, after having increased markedly during the second quarter, is expected to display a weaker course in the third quarter. Although employment indicators show some improvement, it remains to be seen whether this will turn into a robust recovery. Therefore, inflation is expected to remain at low levels for a long period of time," it said. "The committee indicates that a slowdown in the pace of the rate cuts would be considered in the next meeting depending on the economic data and developments," it


added. ----------------------------------------------------------------------------------------------------------------------- Foreign exchange reserves in Turkey's CB rises Thursday, 15 October 2009 16:33 WORLD BULLETIN ------------------------------------------------------- The reserves were 70.096 billion USD on October 2. Foreign exchange reserves of the Turkish Central Bank rose to 70.672 billion USD as of October 9, the bank said on Thursday.The reserves were 70.096 billion USD on October 2. In its weekly bulletin, the Central Bank said that Turkey paid back 192.6 million USD of foreign debt between October 1 and 14. Turkey's foreign debt repayments amounted to 9.7 billion USD since the beginning of 2009. Turkey repaid 15.7 billion USD in 2008. --------------------------------------------------------------------------------------------------------------------- Turkey's finance ministry says budget deficit 40.8 bln TL Thursday, 15 October 2009 10:55 WORLD BULLETIN ------------------------------------------ The ministry made public budget figures for September and January-September 2009. Turkey's central management budget deficit became 40.8 billion Turkish liras in the first nine months of 2009, the finance ministry said on Thursday. (1 USD = 1.44 TL) The ministry made public budget figures for September and January-September 2009. Budget expenditures increased 9.5 percent and incomes climbed by 15.7 percent in September 2009 compared to September 2008. Budget deficit became 9.4 billion TL in September. In the period between January and September 2009, budget expenditures became 197 billion TL while budget incomes amounted 156.3 billion TL. Primary surplus became 4.7 billion TL in the first nine months of 2009. TUIK reveals unemployment figures for Turkey The unemployment rate in Turkey was announced as 12.8 percent in July, 2009. Thursday, 15 October 2009 10:16 The unemployment rate in Turkey was announced as 12.8 percent in July, 2009. Turkish Board of Statistics (TUIK) stated on Thursday that the number of unemployed people increased to 3,267,000 in July 2009 when compared to July 2008. The rate of unemployment rose 2.9 points to 12.8 percent in July, 2009. The rate of unemployment in cities increased 4 points to 16 percent while it rose 1.3 points to 6.8 percent in rural areas in July, 2009. The unemployment rate was 13 percent in June, 2009. The rate of participation in labor force in July, 2009 was 49.3 percent. ----------------------------------------------------------------------------------------------------------------------- Turkey's stock market hits 2009's new record high Thursday, 15 October 2009 07:35


WORLD BULLETIN ------------------------------------------------- Turkey's main share index sprinted to this year's new record high level on Wednesday. Turkey's main share index sprinted to this year's new record high level on Wednesday and closed at 51,026.08 points with the benchmark up by 954.53 points, or 1,91 percent. The Istanbul Stock Exchange (IMKB) National-100 index had seen its highest on October 12 with 51,002.98 points. ------------------------------------------------------------------------------------------------------------------------ Turkey says to sign over 40 protocols with Iraq Yildirim said that Turkey and Iraq would sign more than 40 protocols tomorrow. Wednesday, 14 October 2009 16:19 Turkish Transportation Minister Binali Yildirim said on Wednesday that Turkey and Iraq would sign more than 40 protocols tomorrow. He added that 11 of those protocols were related with transportation which showed that transportation was very important in cooperation. Yildirim, who met with Iraqi Communications Minister Faruq Abd Al-Qadir in Ankara, told reporters that Al-Qadir and accompanying delegation had been holding meetings with officials of Turkish telecommunication and communication companies for two days about Iraq's telecommunication infrastructure. Yildirim said that they would pursue the studies on the protocol which was planned to be signed today. He added that the protocol would be signed in Baghdad together with the other protocols. Al-Qadir said that his ministry was set up in 2003, adding that they recorded progress in communication projects and infrastructure since then. He said that they wanted to make Iraq a country of connections, adding that they wanted to reach Turkey's experience level. --------------------------------------------------------------------------------------------------------------------- Italian sector representatives to meet Turkish business circles Wednesday, 14 October 2009 11:55 WORLD BULLETIN ------------------------------------------------- A delegation from the Italian Chambers Union consisting of businessmen is set to pay a visit to Turkey. A delegation from the Italian Chambers Union consisting of businessmen is set to pay a visit to Turkey. The delegation consisting of representatives from 25 Italian companies operating in the sectors of furniture, home appliances, metal-mechanics, and bathroom accessories will hold meetings with business people and business organizations. Udine, Massa Carrara ve Frosinone commerce chambers will also be represented in the delegation which will visit Istanbul and Ankara between October 18-22. The delegation is expected to visit Turkish Union of Chambers and Commodity Exchanges, Turkish Industrialists' and Businessmen's Association, Istanbul Chamber of Industry and Istanbul Chamber of Commerce. ------------------------------------------------------------------------------------------------------------


----------- Turkey says to form special country desks for foreign trade Wednesday, 14 October 2009 11:29 WORLD BULLETIN --------------------------------------------- Caglayan announced Wednesday that Turkey would form country desks for foreign trade. Turkish State Minister Zafer Caglayan announced Wednesday that Turkey would form country desks for foreign trade. Caglayan told reporters upon his arrival in Egypt where he will be attending the 13th International Business Forum organized by MUSIAD that the Foreign Trade Undersecreteriat was working on a new system.He said the new system featuring country desks and experts would be announced with a press conference on October 26. Caglayan said the rules of global trade and competition changed and global volume of exports contracted while number of players trying to get a share from exports increased. "We can not remain indifferent to the changes in foreign trade. Therefore we are forming country desks for foreign trade and appointing country experts," said Caglayan. Caglayan said the special desks for 14 new target countries, 25 priority countries, and countries like China --which did not receive due attention in the past-- would be formed. Commenting on the functioning modality of the new system Caglayan said, "China imports USD 1.5 billion of goods from Turkey while it exports USD 15.5 billion of goods to Turkey. This is because we failed to develop the necessary strategies, and portrayed China as a monster country to be feared. In the new system we will determine the goods China imports, where it imports these from and analyse why we can't export these goods, and what we need to do in order to succeed." ------------------------------------------------------------------------------------------------------------------- Turkey, Syria to complete Arab natural gas pipeline in 18 months Wednesday, 14 October 2009 08:34 WORLD BULLETIN ------------------------------------------- Yildiz said that LPG produced in Turkey could be sold to Syria. Turkey's energy minister said on Tuesday that Turkey and Syria decided to complete construction of Arab natural gas pipeline. Energy and Natural Resources Minister Taner Yildiz met Syrian oil and electricity ministers within the scope of the ministerial meeting of Turkey-Syria High Level Strategic Cooperation Council. After the meeting, Yildiz said they discussed Arab natural gas pipeline with Syrian officials, and decided to complete the construction within 18 months. Yildiz said that LPG produced in Turkey could be sold to Syria, and the LPG agreement was about to be finalized. ------------------------------------------------------------------------------------------------------------------------ Turkey calls on Islamic states to set up common economic zone Tuesday, 13 October 2009 17:21 WORLD BULLETIN


----------------------------------------------- Turkish Minister called on OIC members to set up a common economic zone. Turkish State Minister Zafer Caglayan called on members of Organization of the Islamic Conference (OIC) to set up a common economic zone. Speaking at the opening session of the 13th International Business Forum Congress in Cairo on Tuesday, Caglayan said that Turkey attached importance to develop trade with neighboring countries during global economic crisis period. Caglayan said that Turkey did not have any involvement in the emerging of global economic crisis, but it suffered from the influences of the crisis like other developing countries. He added that the influence of crisis on Turkey was more limited than it was on the U.S. and the EU. He said that Turkey had a strong position especially in banking sector. Caglayan said that Turkey exported products worth of 132 billion USD to more than 200 countries in 2008, adding that total trade volume was 334 billion USD. He noted that Turkey's foreign trade volume with 57 member states of OIC increased from 47 billion USD in 2007 to 62 billion USD in 2008. Caglayan said that 1.4 billion people were living in 57 OIC-member states, and this was an important part of world population. Noting that export figure of Islamic countries in 2008 was 1.4 trillion USD, Caglayan said that total product export of the world in 2008 was 16 trillion USD. He added that Turkey believed that the export figure of Islamic countries should be increased. --------------------------------------------------------------------------------------------------------------------- Turkish Minister in Pakistan for joint economic meeting Wednesday, 14 October 2009 10:57 WORLD BULLETIN ----------------------------------------- Aydin is currently in Pakistan to attend Turkey-Pakistan Joint Economic Council meeting. Turkish State Minister Mehmet Aydin on Wednesday expressed Turkey's readiness to boost trade volume with Pakistan. "Turkey is ready to do its best to raise actual trade volume," Aydin said speaking at a meeting with Pakistani Trade Minister Makhdoom Mohammad Amin. Aydin is currently in Pakistan to attend Turkey-Pakistan Joint Economic Council meeting. Aydin is expected to meet Pakistani President Asif Ali Zardari, and Pakistani ministers of Privatization and Public Works. Investments related to energy, transportation, civil aviation, dam construction and irrigation are among the main topics that would be discussed during Aydin's talks in Pakistan. ------------------------------------------------------------------------------------------------------------------- Turkey sacks head of state pipeline company Botas Wednesday, 14 October 2009 10:45 WORLD BULLETIN -------------------------------------------------


The state-run newspaper did not provide a reason for Saltuk Duzyol's dismissal. The Turkish government has sacked the head of pipeline operator Botas, a partner in the $11.8 billion Nabucco natural gas pipeline project, according to the Official Gazette on Wednesday. The state-run newspaper did not provide a reason for Saltuk Duzyol's dismissal. A Botas spokesman confirmed the dismissal but did not give a reason for the move. Duzyol became general manager and chairman at Botas in December 2007 after serving as deputy chairman from 2004, according to Botas' website. Botas has played a key role in trying to turn Turkey into an energy hub for European oil and gas supplies through a series of pipeline projects, including Nabucco, conceived to cut Europe's dependence on Russian gas. Botas, which imports almost all of Turkey's natural gas from Russia, Iran and Azerbaijan and most of its oil, has struggled to recoup some 10 billion lira ($6.9 billion) of receivables, almost all of which are from state-owned power plants. Nabucco's other shareholders are OMB of Austria, Germany's RWE, Hungary's MOL, Romania's Transgaz and Bulgaria's Bulgargaz. ($1=1.45 lira). ------------------------------------------------------------------------------------------------------------------------ SOCIAL ISSUES Turkey TV series tells Palestinian drama under Israeli guns / PHOTO Thursday, 15 October 2009 22:36 World Bulletin / News Desk -------------------------------------------------------- A Turkish television drama series told on Thursday Palestinian's grief in a sensitive case among Turkish people, depicting an Israeli soldier shooting dead a Palestinian baby. A Turkish television drama series told on Thursday Palestinian's grief in a sensitive case among Turkish people, depicting an Israeli soldier shooting dead a Palestinian baby. "Separation" underlines that the believe will not dissappear in the holy territory which becomes symbol of the humanitarian joint place for both Palestinians and Israelis without discrimination between Muslims or Jews. TRT is sponsoring the 13-episodes series with the motto "7 countries, 7 headliners". First episode, titled "Palestine in Love and War", was shot in the first qibla (direction of the Muslim prayers) Al-Aqsa mosque and the most important place for Jewish believers, Wailing Wall. Other episodes of "Separation" was shot in Armenia, Chechnya, Iran, Ozbekstan, Azerbaijan and Turkmenistan alongside Turkey. Israeli reaction Previously close ties between the Jewish state and Turkey, a secular state with a Muslim population, have deteriorated since Israel's offensive in the Palestinian Gaza Strip, which is ruled by the Islamist Hamas. Israel summoned a Turkish diplomat to protest at what it called "state-sponsored incitement" by state-owned TRT television's "Separation" series, in which actors playing Israeli soldiers and Palestinians fight street battles in Quds (Jerusalem). The show's producer, Selcuk Cobanoglu, told Reuters, "If the Israeli government is disturbed with this, it means they are disturbed with the reality when we go there and eyewitness what is happening there."


The scene, broadcast on Israel's Channel Two television on Wednesday, showed a Palestinian father holding a baby above his head and an Israeli soldier deliberately shooting the infant. Gaza assault Israel's three-week offensive in the Gaza Strip in December and January killed 1,417 Palestinians, including 926 civilians, a a Palestinian rights group says. Ten Israeli soldiers and three civilians were killed during the campaign, which Israel targeted public areas such as hospitals, schools and mosques. During a meeting with the Turkish embassy charge d'affairs, a Foreign Ministry official said Israel "cannot stand by when such blatant incitement is being broadcast against Israel and (Israeli) soldiers," a statement issued by the ministry said. The official also said the portrayal of Israeli soldiers as "a master race eager to murder children" could endanger Israeli and Jewish tourists who visit Turkey. Turkish officials in Ankara and Tel Aviv were not immediately available for comment, Reuters said. Turkey barred Israel from participating in a NATO war exercise this week and Prime Minister Tayyip Erdogan said the move was a result of public concerns over the Israeli military offensive in the Gaza Strip earlier this year. The drill was postponed indefinitely after other nations, including the United States and Italy, refused to take part without Israel's air force. In January Erdogan, who heads the ruling AK Party, stormed out on Israeli President Shimon Peres at the World Economic Forum in Switzerland in protest over the offensive. In the fragman of the series, Israeli soldiers shot Palestinians children and then, a stamp entitled "One Minute" was showed. ---------------------------------------------------------------------------------------------------------------------- Mevlana's Masnawi to be Published in Chinese, Kazakh, and Greek Wednesday, 14 October 2009 USAD PUBLICATIONS --------------------------------------------------------- "The Masnavi" or "Masnavi-I Ma'navi", written in Persian by Mevlana Jalal al-Din Rumi, will be published in Chinese, Kazakh and Greek languages. The metropolitan municipality of Konya, where Mevlana's tomb is located, had the book translated into these languages in an effort to promote Mevlana and his works, Konya Mayor Tahir Akyurek said. Akyurek said Masnawi would be published in these languages in a month. He also said that the book would be translated into Korean and Azerbaijani languages soon. Masnawi was so far published in 17 languages, including English, German, Spanish, French, Arabic and Dutch. Mevlana was born on September 30, 1207 in Balkh in present day Afghanistan. He died in Konya on December 17, 1273. He was laid to eternal rest beside his father and over his remains in a splendid shrine that was erected in Konya. Mevlana devoted himself to the pursuit of Sufi mysticism, in which he was justly regarded as the supreme master. He was the spiritual founder of the Mevlevi order of whirling dervishes. "Come, come again, whoever you are, come! Heathen, fire worshipper or idolatrous,


come! Come even if you broke your penitence a hundred times. Ours is the portal of hope, come as you are," is his famous motto that has been seen as a symbol of tolerance and love for centuries. The Masnavi or Masnavi-I Ma'navi, is one of the best known and most influential works of both Sufism and Persian literature. Comprising six books of poems that amount to more than 50,000 lines, it pursues its way through 424 stories that illustrate man's predicament in his search for God. ----------------------------------------------------------------------------------------------------------------------- Officials on alert as swine flu cases rise to 15 in capital Friday, 16 October 2009 12:19 Todays Zaman --------------------------------------------------------- With the number of people diagnosed with the H1N1 flu -- popularly known as swine flu -- after an outbreak at an Ankara school now at 15, including ten students, officials have intensified efforts to prevent the spread of the virus. Officials reported more cases yesterday after a student in the elementary division of the Bilkent Laboratory & International School was diagnosed with swine flu. The Ankara governor announced yesterday that ten of those infected were students and the rest were family members, a doctor and a teacher at the same school. The school will be closed for one week and is being disinfected against the virus by teams from the Ankara Municipality and the Ankara Provincial Directorate of Agriculture. Ankara Governor Kemal Önal yesterday announced that 10 more cases of the virus had been discovered, and tests are still being performed on many more suspected cases. Responding to questions from reporters in Ankara, Önal pointed out that health teams from the Ankara Provincial Health Directorate have been going to the houses of 500 students attending the school along with officials from the school administration to carry out health screenings and are reporting those suspected to be carrying the virus. He said officials had visited the houses of 59 students so far and carried out health checks. Most of the tests have not yet been concluded. As for the question of whether they plan to extend the closure, Önal said it is too early to decide and that they will release a statement a few days before the end of the closure. The Ankara Provincial Health Directorate also issued a statement yesterday stressing that the directorate is looking into the issue and noting that those infected are being kept in isolation in their houses. Meanwhile, Education Minister Nimet Çubukçu also announced yesterday that the Education Ministry has been discussing possible responses to an outbreak of swine flu, which could hit Turkey hard in December. In the case of a severe outbreak that requires schools to be closed for longer periods of time, lessons would be broadcast over either television or radio channels. Noting that they will inform students and their parents about preventive measures against H1N1, Çubukçu said they are working in coordination with the Health Ministry on these measures and also on an action plan for if the virus spreads. So far, 481 confirmed cases of swine flu have been reported in Turkey. Of these, 164 involved Turkish nationals while the rest were foreigners. None of the cases have been fatal.


------------------------------------------------------------------------------------------------------------------ Swine flu cases in Turkey rise to ten in Ankara school Thursday, 15 October 2009 15:42 Todays Zaman --------------------------------------------------- Earlier, the ministry said five people, including two parents and three students, were diagnosed with swine flue. The Turkish Health Ministry said on Wednesday that ten people were diagnosed with swine flue in a primary school in the capital of Ankara. Executives of the ministry said that the number of people infected with swine flu had risen to ten in the Bilkent University Preparatory School (BUPS) Elementary School. said five more people were diagnosed with swine flu in the elementary school, raising the number of infected to ten. Earlier, the ministry said five people, including two parents and three students, were diagnosed with swine flue. In its later tests, the ministry A student who had returned to Turkey from Scotland was hospitalized after symptoms of swine flu were detected. The result of the tests was positive. ------------------------------------------------------------------------------------------------------------------------ The school will be closed for a week. Thursday, 15 October 2009 13:08 Todays Zaman ---------------------------------------------------------------- Swine flu outbreak leads to weeklong closure of Ankara school The school, which has been closed for a week, is being disinfected by teams from the Ankara Metropolitan Municipality and the Ankara Provincial Directorate of Agriculture. As the Turkish Health Ministry has been trying to prepare schools for a wave of swine flu outbreaks -- which is likely to hit countries across the world, including Turkey, with the advent of winter-- a primary school in Ankara was closed for a week yesterday after three students and two members of students' families were diagnosed with H1N1 flu, popularly known as swine flu. Ankara Provincial Health Director Mustafa Aksoy announced on Tuesday evening that a student in the elementary division of the Bilkent Laboratory & International School had been diagnosed with swine flu but was in good health. The student, B.T., reportedly attended a summer school in Scotland a short time ago. The Health Ministry yesterday announced that the number of swine flu cases at the school had increased to five and closed the school for a week. Turan Buzgan, a deputy undersecretary at the Health Ministry, reported yesterday that three of those infected were students and two others were parents of students. He also added that tests are still being performed on four others -- a teacher and two students -- who are suspected to have been infected with the virus. Students are reportedly being treated at home. The school is being disinfected against the virus by teams from the Ankara Municipality and the Ankara Provincial Directorate of Agriculture. Speaking to the Anatolia news agency, Ankara Governor Kemal Önal said they do not plan to close any neighboring schools. Noting that health teams from the Ankara


Provincial Health Directorate have started to go to the houses of 500 students attending the school along with officials from the school administration to carry out health screenings, the governor asked students and their parents not to panic. Stating that they will evaluate the situation after one week and decide whether to prolong the recess or not, he said some parents are also among those suspected to be carrying the virus. As for the question why B.T. had not been detected by thermal cameras which were installed by the Health Ministry at İstanbul Atatürk Airport in April to measure the temperatures of incoming international passengers as a precaution against swine flu, the governor said the student was possibly in the very early stages of the illness when he entered the country. Abdullah Atar, vice rector of Bilkent University, said everything at the school is under the control of the Health Ministry. Parents of some students came to the school yesterday to get information from the school administration about the situation. Hale Üstünel, the mother of a student at the school, said she had taken her daughter to school and that she was not diagnosed with swine flu. Gözde Acaroğlu, whose two sons attend Bilkent Laboratory & International School, told Today's Zaman that one of her sons was also among the students who went to Scotland as part of a school-organized trip. “He had a fever last week and I took him to the doctor. They tested him due to concerns over swine flu, but his tests came back negative for H1N1,” said Acaroğlu, who is also a doctor. Stating that the school is an international one and that both its students and teachers go abroad frequently, she said the school was already taking precautions against a possible swine flu outbreak. “The nurse at the school previously informed students about the flu. The school frequently sent booklets on swine flu to our house,” she noted. She also said that although the names of the students infected by the virus were not made public, she thinks they are students who attended a recent school trip to Cappadocia. B.T. was reportedly infected by the virus in Scotland, and the virus was transmitted to other students during a school trip to Cappadocia. In the meantime, administrators of some primary schools in Ankara sent SMS messages to parents informing them of the symptoms of swine flu. “We kindly request that you not send students with high fever, coughing, rhinitis and diarrhea to school before they are taken to a doctor,” read the message. Ministries on alert Health Minister Recep Akdağ recently warned that 2010 is likely to be a year with many swine flu outbreaks and called on everyone to take precautionary measures against the epidemic without panicking. “Swine flu cases will sharply increase from December on in the northern hemisphere, where our country is located. The swine flu virus is sensitive to temperature change. Since the human body cannot recognize this virus, it replicates quickly in the body. This is what makes it very dangerous,” he said. Akdağ also said the government plans to import 40 million doses of the H1N1 swine flu vaccine and that the first shipment is expected to arrive on Oct. 15. “In the first phase, we will vaccinate those below age 24 and those in at-risk groups. We will vaccinate close to 30 million free of charge. We will implement strict measures,” he said. The Turkish Education Ministry has also been discussing possible responses to an outbreak of swine flu, which could hit Turkey hard in December. In the case of a severe outbreak that requires schools to be closed for longer periods of time, lessons would be broadcast over either television or radio channels. Education Minister Nimet Çubukçu


recently said they are working in coordination with the Health Ministry on preventive measures against H1N1 and also on an action plan for if the virus spreads. So far, 481 confirmed cases of swine flu have been reported in Turkey. Of these, 164 involved Turkish nationals while the rest were foreigners. None of the cases have been fatal. ------------------------------------------------------------------------------------------------------------


Turkey

Weekly Report on Turkey’s Political, Geo-Strategic, Economic and Social Issues

Period: October 18 – 24, 2009.

Submitted By: Aasia Khatoon

Presentation: October 28, 2009

Report no. 90

NEWS OUTLINE

POLITICAL ISSUES 1. Kurdish Issue

Gül calls on terrorists to come down from mountains Symbolic move may signal start of outlawed PKK’s disarmament Kurd Group Seeks Peace in Turkey Erdoğan says he won’t meet with Baykal after camera controversy Surrender of PKK members part of Öcalan’s roadmap, says Baykal PM warns joyous reception of PKK members might harm process War veterans condemn enthusiastic welcome of returning PKK members US hopes PKK problem will end before US withdrawal

2. other Political Issues Yet another journalist targeted over Ergenekon articles

CHP sets condition to joining MGK İstanbul hosts 4th annual orphans' meeting

GEO-STRATEGIC ISSUES Turkish Foreign Minister Davutoglu Proceeds From Bosnia-Herzigovina To Albania Albania, Turkey reaffirm joint view on Balkans, Mediterranean Turkey seeks regional peace with moral responsibility in mind Turkey and Albania agree to introduce visa exemption Turkish President Speaks To U.S. President By Phone Pakistan To Decorate Turkish Premier With Its Medal Of Merit


Nazarbayev says he is eager to supply oil for BTC pipeline Turkey, Kazakhstan take step for strategic partnership Kazakh President attends Turkey-Kazakhstan Business Forum

Turkish Premier Offers His Condolences To Iranian President Turkish Foreign Minister: "Neither Armenia Nor Any Other Country Could Dare To Claim Any Part Of Turkish Territories" Turkey pledges punishment for disrespect to Azeri flag Greek PM urges withdrawal of Turkish troops from Cyprus Ankara moves toward ‘privileged partnership’ with Moscow Macedonian President in Turkey Turkish Foreign Minister Underlines Importance of Strong Bosnia Prime Minister Erdogan to Visit Pakistan, Iran Turkey Urges Israel To End Gaza Blockade

ECONOMIC ISSUES Turkish gvt submits new budget to parliament EBRD revises 2010 growth rate projection for Turkey up to 3 Pc Turkish Bus Producers In Busworld Fair In Belgium Crisis recovery budget drafted without reference to IMF deal "IMF deal to have positive impact on Turkey's growth rate" The Impact of a Possible Deal with the IMF on Turkish Economy

SOCIAL ISSUES Experts warn against growing number of child beggars First Batch of Swine Flu Vaccines Brought to Turkey Two Schools Recess in DIyarbakir Due to Swine Flu Turkey reports seven swine flu cases in four Diyarbakir schools Two Schools Recess In Diyarbakir Due To Swine Flu Swine flu vaccination under way Academic warns against bird extinction rates in Turkey


POLITICAL ISSUES

Kurdish Issue Gül calls on terrorists to come down from mountains

19 OCTOBER 2009 Todays Zaman ------------------------------------------- President Abdullah Gül has called on Kurdistan Workers' Party (PKK) terrorists still in the mountains to return home under an active repentance law and reunite with their families.


Monday, 19 aired by a Turkish Radio and Television Corporation (TRT) TV station, Gül spoke about the government's recent efforts to settle Turkey's long-standing Kurdish issue. “I hope this issue will be settled without bloodshed. There is a law aimed at those returning from the mountains. They can reunite with their families immediately. More and October 2009 14:47 Speaking on a program more PKK members are beginning to avail themselves of it [the law]. I hope all who spent their lives in the mountains will come down from the mountains and reunite with their families,” he said. Stating that the country's fight against terrorism and relations with Armenia are two problems the Turkish state is seeking to settle, he said that apart from public efforts, the state is also taking private steps. “No state can tolerate armed terrorists. We are determined to fight back. But, this fight does not always have to involve arms. All state organs have been working on this issue. These unspoken and invisible efforts are also significant,” he said. Article 220 of the Turkish Penal Code (TCK), known as the “active repentance law,” stipulates the release of terrorist organization members who turn themselves in without punishment so long as they have not been involved in any armed clashes with security forces or any other terrorist attacks against Turkey. During the program, Gül also brought up a new proposal regarding the National Security Council (MGK). “I think it would be very useful if an amendment is made to enable the main opposition party's participation in MGK meetings,” he said. He noted that it is important if the main opposition party can be directly informed about the content of the meetings in which Turkey's most important issues are discussed. Gül also said he plans to invite main opposition Republican People's Party (CHP) leader Deniz Baykal to the Çankaya presidential palace following an ordinary MGK meeting slated for Oct. 20. “I have been the president for two years, but I have not had the chance to meet with all political party leaders around the same table. Although I have invited all, all but the main opposition leader have come. We discussed a number of issues in detail. We can have such meetings again if needed,” he said. ----------------------------------------------------------------------------------------------------------------- Symbolic move may signal start of outlawed PKK’s disarmament

Monday, 19 October 2009 11:29 Todays Zaman ------------------------------------------- The outlawed Kurdistan Workers' Party (PKK) is expected to turn over a group of its members to Turkish authorities today in a move to force government's hand in the recently launched democratization process to solve the decades-old Kurdish problem. The symbolic move, which some call a gesture toward the government while others say it was intended to force the government's hand, was initiated after Abdullah Öcalan, the leader of the terrorist PKK, who is serving life in prison on İmrali Island, urged the PKK last week to send what he described as “peace groups” to surrender to the Turkish authorities. Öcalan asked that two groups, one from Europe and the other from northern Iraq, surrender. The latter includes people, some of them children, from the Makhmour refugee camp. The group from northern Iraq is expected to arrive at the Habur border gate on


Monday morning, but the timing of the arrival of the group from Europe is not yet clear. Most of the nearly 10,000 inhabitants of the Makhmour refugee camp left Turkey in 1994, but some of them were born at the camp. Ankara claims that the Makhmour camp serves as a safe haven for the PKK, although it is under the control of the United Nations High Commissioner for Refugees (UNHCR) . According to PKK-affiliated media organizations, 26 persons, four of them children, from Makhmour refugee camp will arrive in Turkey today. Lawyer Muharrem Erbey, head of the Diyarbakır branch of the Human Rights Association (İHD), told Today's Zaman that the approach of the authorities toward the surrendering group will be a real test for the sincerity of the government. Erbey recalled that Article 221 of the Turkish Penal Code (TCK) is known as the “active repentance” law and surrendering persons are usually forced to say that they are regretful and give information about the organization they belonged to. “Those who will come from Makhmour should be released immediately after the identity checks. But the ones coming from the PKK should not be forced to say that they are regretful; it is important to help them to keep their dignity. Such an approach will prepare the ground for gun-free politics,” he said. The Turkish government launched an initiative in late July to solve the long-standing Kurdish question, a problem that has cost almost 40,000 lives over the last 30 years. The government has not yet detailed its plan, but officials have frequently underlined that the process aims to make every Turkish citizen an equal and free member of a highly developed democracy. But some circles, including the main opposition Republican People's Party (CHP) and the Nationalist Movement Party (MHP), which are both against the initiative, claim that before taking any steps, terrorism should first come to an end and the PKK must surrender. Treatment will set an example It is also expected that a group of PKK militants will accompany the group that will surrender. After they are turned over to Turkish prosecutors, the group will be processed and their identities will be verified. The prosecutor might not even send them to court and might order their release based on Article 221 of the TCK. During the public debate over the democratization initiative, pro-Kurdish circles demanded amnesty, but the government suggested broader implementation of Article 221. This article allows members of any criminal organization who have not been involved in attacks to avoid punishment if they turn themselves in and provide information on the group. The Taraf daily reported on Sunday that the after the PKK decided to dispatch a group, the pro-Kurdish Democratic Society Party (DTP) contacted officials from the Interior Ministry and the officials promised that the surrendering group would be released within four hours of being screened. The newspaper also claimed that a governor will be sent from Ankara to the Habur border gate in Silopi, Şırnak, to monitor the surrendering process. Öcalan also urged these “peace groups” to discuss the demands of Kurds with different circles in Turkey, including Parliament. PKK-affiliated media organizations reported on Sunday that the group that will surrender this morning will bring letters for President Abdullah Gül, Parliament Speaker Mehmet


Ali Şahin and Prime Minister Recep Tayyip Erdoğan. They will demand to have meetings at Parliament, as well. DTP involved with surrender Meanwhile, the DTP is organizing a “welcome ceremony” for the group. Over the weekend, DTP deputies and members of local branches of the party distributed leaflets to people inviting them to participate in this ceremony. The DTP aims to gather 10,000 people at the border gate. The co-chairpersons of the DTP, Ahmet Türk and Emine Ayna, will be present at the gate to receive the surrendering group. Some civil society organizations from the Diyarbakır Democracy Platform, which comprises 43 civil society organizations, including the Diyarbakır Bar Association, workers union and chambers of commerce, will be present at the border gate. Türk and Ayna in a written statement over the weekend urged the government to benefit from the “peace and solution” opportunity and asked the government not to “repeat the same mistake of 1999.” In 1999 when Öcalan was captured he also urged a group from the PKK to surrender. At that time, eight PKK members with guns surrendered to Turkish officials, but after their trial they were sentenced to prison for up to 10 years. “Turkey, at that time, by sending the peace envoys to prison refused the opportunity. After 10 years, Turkey has another important opportunity. We hope that Turkey will not repeat the same mistake of 1999,” Türk and Ayna's statement read. The co-chairpersons suggested that the PKK decided to dispatch the group in order to show its determination for peace at a time when the government's democratic initiative is facing a deadlock. “Kurds are very decisive about peace and a solution today, like they were in the past. Send peace groups to Turkey is an expression of this sincerity,” the statement claimed. Testing the waters Diyarbakır Bar Association Chairman Emin Aktar underlined that the implementation of Article 221 will be very important, noting that if people are not asked to say that they are regretful, society will be relieved and more people will return from the mountains. Aktar told Today's Zaman that Öcalan urged the groups on Thursday and the first group will arrive today, which makes him to think that there might be a indirect negotiations. “I don't have any information about it, but being able to organize in such a short period of time makes me think that there are some negotiations going on, and if that is the case, we can hope that the Monday incident will end without problems. This will mean that the solution will be closer,” he said. Strategy expert Nihat Ali Özcan from the Turkish Union of Chambers and Commodity Exchanges (TOBB) University told Today's Zaman that the PKK tactics aim to shape world and Turkish public opinion. “They want to gain the support of the world and Turkish public opinion. They are also taking another step forward in the process. It is important what they will ask in return for those people who will come. But such a move is also restricting the government's ability to maneuver because the message behind this surrender is ‘We are ready, what about you?'” he said. ----------------------------------------------------------------------------------------------------------------------


Kurd Group Seeks Peace in Turkey Monday, 19 October 2009 USAD PUBLICATIONS -------------------------------------- A small group of unarmed Kurdish rebels in combat dress crossed into Turkey from northern Iraq on Monday in a show of support for peace with the Turkish government, Error! Hyperlink reference not valid. reported. Thirty-four Kurds walked across the Iraqi-Turkish Habur border gate, where they were immediately detained by paramilitary police and moved to the headquarters of a nearby military battalion for questioning by four prosecutors, the state-run Anatolia news agency reported. The group included eight rebels and the rest were noncombatants, including women and children. Kurds in northern Iraq celebrated with music and beat drums as the group left from a refugee camp in a convoy, Turkey's Anatolia news agency reported. Turkish television showed thousands of Kurds gathered near the border to greet the group, waving Kurdish flags, singing, dancing and holding up banners calling for peace. Riot police stood guard, while a helicopter circled overhead. The rebel group - the Kurdistan Workers' Party, or PKK - said its imprisoned leader Abdullah Ocalan had given instructions for "peace groups" to travel to Turkey to promote reconciliation. The Turkish government has been working on an initiative to end the conflict with the PKK's thousands of rebels. "We hope this will be the beginning of solving the Kurdish case through dialogue and away from the gun barrels," Bozan Taken, a PKK leader, told The Associated Press by telephone. "We want to show the world that we are with peace and we want peace. The Turkish side has to do the same and to find a radical solution to the Kurdish case." The rebels have been fighting since 1984 for autonomy for Turkey's Kurds, who makes up a fifth of the country's 70 million population and live predominantly in the impoverished southeast. Tens of thousands have died in the conflict. The PKK have said, however, that Turkish nationalists and other opposition parties are blocking the government's peace initiative, and that they hope to encourage the government to continue the process. Ocalan, who is serving a life sentence on a prison island off Istanbul, leads his group through messages reportedly delivered to fighters by his lawyers. The rebels traveling to Turkey were selected among fighters who have not been charged with attacking Turkish forces, and were expected to benefit from a law pardoning rebels not involved in violence. Five of the rebels had been previously charged with making rebel propaganda or with membership in a terrorist organization, but none were wanted for any violent attacks, Anatolia reported. The pro-Kurdish news agency, Firat News, published a photograph of the rebels dressed in guerrilla outfits composed of khaki baggy pants, cummerbunds and combat vests, walking along a road in northern Iraq. The group included several women. Dozens of lawyers had arrived at the border to assist the group during their questioning, Kurdish lawmaker Sabahat Tuncel told the AP. A second group of rebels - mainly Kurds in exile in Europe - was also expected to arrive in Turkey at a later date, Turkish news reports said.


Many PKK guerrillas shelter in the mountains of neighboring Iraq, crossing the border for hit-and-run assaults. The group is considered a terrorist organization by both the European Union and United States. Turkey's government has yet to reveal details of its peace initiative, but in recent years has provided more economic help and cultural rights to Kurds, including lifting a ban on the Kurdish language in 1991. At the same time, however, it has accelerated its military campaign against the rebels. Last year, Turkey staged a ground offensive against suspected rebel targets in northern Iraq, and has launched cross-border aerial attacks with the help of U.S. intelligence. Parliament this month extended the military's mandate to strike rebels in Iraq. ---------------------------------------------------------------------------------------------------------------------- Surrender of PKK members part of Öcalan’s roadmap, says Baykal Wednesday, 21 October 2009 10:11 Todays Zaman --------------------------------------------------- The leader of the main opposition Republican People's Party (CHP), Deniz Baykal, has argued that the surrender of 34 terrorists to Turkish security forces has revealed the role of the jailed leader of the outlawed Kurdistan Workers' Party (PKK), Abdullah “We have started to understand what has been talked about recently. They keep talking about an initiative and a process. We have seen what is behind it. We understand why the process is being carried out secretly. We understand the reason why the Democratic Society Party [DTP] pointed to Öcalan as an interlocutor. We have seen that Öcalan's roadmap has been implemented,” he said as he delivered a speech at his party's parliamentary group meeting on Tuesday. Thirty-four PKK members surrendered to Turkish security forces on Monday in a show of support for the government's plans to settle the Kurdish question through democratic means. “Look at the timing. Two groups from Makhmour and Kandil set out [to surrender] at the same time in an organized way. They were met by prosecutors, the National Intelligence Organization [MİT] and state officials. This was scripted. Someone penned this scenario,” Baykal argued. The group entered Turkey through the Habur border gate. A crowd gathered to greet them, including DTP leaders Ahmet Türk and Emine Ayna, DTP party officials and thousands of people who welcomed the group with jubilation. The crowd chanted slogans in support of Öcalan and the PKK. Baykal highly criticial of Turkish-Armenian rapprochementBaykal highly criticial of Turkish-Armenian rapprochement The CHP leader also argued that Turkey failed to manage the rapprochement process with Armenia in a successful way, which he said offended Turkey's centuries-old friendship with Azerbaijan. “We believe Turkey's problems with Azerbaijan have gone beyond being a problem of discourse and have headed in a more serious direction. I see who is right and who is wrong regarding this issue. Turkey failed to manage the process of opening its border with Armenia and is now faced with grave problems,” he noted.


Baykal criticized the recent signing of two protocols between Turkey and Armenia, which call for the opening of the border, closed since 1993, and the restoration of diplomatic relations. “We warned the government not to sign those protocols. … These [protocols] are not something ordinary. We should maintain our strong relations with Azerbaijan. The strongest blow to the Nabucco project has come from this government. It will have serious outcomes. Turkey played a soccer game with Armenia. As if the protocol controversy was not enough, we are now faced with a flag crisis,” he complained. After Turkey imposed a ban on Azerbaijani flags during the Turkey-Armenia World Cup qualifying match on Oct. 14 in Bursa, Azerbaijani authorities removed Turkish flags from monuments commemorating Turkish soldiers lying in Azerbaijani soil. “Thousands of PKK supporters staged demonstrations with PKK flags in their hands, looking into the eyes of security forces the other day. Is the government OK with all [other] flags, but disturbed by the Azerbaijani flag?” asked Baykal. He went on to say that the main opposition party will not sacrifice Turkey's friendship with Azerbaijan because of the bad policies of the goverment. Abdullah Gül regrets CHP's response to MGK proposal A statement by the president's office has indicated that President Abdullah Gül was dismayed by the response of main opposition Republican People's Party (CHP) officials to a proposal by the president for the main opposition party to join National Security Council (MGK) meetings. “Making use of the MGK proposal in daily political disagreements has been met with distress and evaluated as a departure from seriousness,” read the statement. Earlier this week, President Gül, who presides over the MGK meetings, suggested that the participation of the main opposition party in the meetings would be a beneficial step for the country. He described the importance of the MGK in the country's political decision-making, calling it a council for which senior statesmen holding great responsibility gather to advise the government. “Therefore, the participation of the main opposition party as an institution in the MGK is a subject to be pursued,” he said. CHP officials, however, did not welcome the proposal, saying the participation of the opposition party in MGK meetings will mean their approval of the decisions made in the MGK. “The attribution of different meanings to the proposal of our president and using such a constructive and democratic proposal in daily political disagreements has been met with distress,” noted the statement. İstanbul Today's Zaman with wires ------------------------------------------------------------------------------------------------------------------------

PM warns joyous reception of PKK members might harm process Thursday, 22 October 2009 10:58 Todays Zaman ------------------------------------------------------------------ Jubilation in predominantly Kurdish areas over people who “returned home” through the Habur border crossing on Monday has led to warnings from the prime minister in light of criticism from the opposition and reactions from the media and some civil society


On Monday, a group of 34 people associated with the outlawed Kurdistan Workers' Party (PKK) surrendered at the Habur border gate, on the Turkish-Iraqi border, as the Turkish government is preparing to unveil measures to widen the democratic rights and freedoms of the country's citizens. Eight of the group's members came from the Kandil Mountains, where the PKK has a camp. The rest came from Makhmur, a refugee camp in northern Iraq. Prime Minister Recep Tayyip Erdoğan was critical of the attitude of some pro-Kurdish Democratic Society Party (DTP) members as they received the group with jubilation and the crowd chanted slogans in support of the PKK and Abdullah Öcalan, the imprisoned PKK leader. Upon the arrival of the 34 people, the crowd, which had been waiting since the previous night, was overjoyed. “Is the attitude seen at Habur correct? Is it a unifying attitude? Is it an attitude which makes people uneasy? Is there freedom and peace in the attitude?” the prime minister asked yesterday. But these calls are falling on deaf ears as some pundits argue the Kurds, tired of a war-like situation in the country's predominantly Kurdish Southeast, are so thirsty for peace that it is normal that they would want to celebrate. Şah İsmail Bedirhanoğlu, chairman of the Southeastern Anatolia Businessmen's Association (GÜNSİAD), said the move raised hopes for a peaceful solution, though everybody should act with common sense. “For two days, civil society organizations of Diyarbakır have been saying that such exaggerated celebrations might be harmful to the process. This issue is very sensitive and can be used to score political points,” he told Today's Zaman. He added that the DTP and other parties should act with common sense and refrain from inflammatory statements. Republican People's Party (CHP) leader Deniz Baykal and Nationalistic Movement Party (MHP) leader Devlet Bahçeli both claimed on Tuesday while addressing their parties' parliamentary groups that the government was surrendering to the PKK. Esat Canan, a former CHP deputy before being elected to the council of the DTP, told Today's Zaman that other parties should refrain from nationalistic speeches, but the same nationalism is also present in the DTP. “It is true that there are nationalistic elements in the DTP, but the DTP leadership, especially Chairman Ahmet Türk, is acting with common sense. The DTP will not act irresponsibly and will not allow irresponsible acts within the party. The aim is to have peace so that all social segments of Turkey can be convinced,” he said. However, he also said Kurds who suffered much during the last decade have a strong desire for peace and it is normal that they would want to celebrate an event which might be the beginning of the peace process. Seydi Fırat from the Peace Council, a civil society organization aiming at a peaceful solution, said the celebrations will end soon and the atmosphere will be calm. Fırat himself was also a former PKK member and surrendered to Turkish authorities in 1999 with a group of his friends upon a request by Öcalan. But when they surrendered, he and his friends were sent to prison. Fırat helped the recent group come from northern Iraq to Turkey.


“The West should not be shy. It is normal for Kurds to receive these people with joy. They are not trying to exploit the situation; they are happy about an opportunity for peace,” Fırat told Today's Zaman. Mazhar Bağlı, a sociologist from Dicle University and a member of the Central Decision and Administration Board (MKYK) of the ruling Justice and Development Party (AK Party), claimed that the DTP and pro-Kurdish circles are trying to hide the feeling of being "losers." “In order to cover up the feeling of being losers, they are calling themselves ‘peace envoys' and holding exaggerated celebrations. But there are also many people in the region who are really hoping for peace and dreaming about their children's return from the mountains so that they can lead a real life,” he told Today's Zaman. He added that this is the success of the AK Party and Prime Minister Erdoğan. Nevertheless, conservative Kurdish intellectual Altan Tan said the exaggerated celebrations are a mistake of the AK Party and Erdoğan. “Common sense required another order. First, democratizations had to be finished. Second, good relations had to be established with northern Iraq. And only when the whole society understands the process is not leading to any separation in the country should the return of these people have been discussed,” he said. Meanwhile, Erdoğan said his government is not going to turn its back on the democratic initiative despite efforts to block it because ethnic separatism cannot divide Turkey. “I am from Rize and my wife is from Siirt. Look, we are together. This means we do not know any separatism,” Erdoğan said in Ağrı yesterday. Justice minister: We won't interfere in prosecution Justice Minister Sadullah Ergin said the ministry would not interfere in the process of prosecution of the PKK members in the event that the office of the prosecutor finds it appropriate. He was speaking in regards to the detention of some members of the PKK returning home. Prosecutors on Tuesday had said five members of the group should stand trial for their membership in the terrorist PKK. Four children were exempted from interrogation. Eventually, they were all released. “As a minister, it would not be possible for me to influence the process,” Ergin said, responding to journalists. When some reporters asked when new prisoners would be sent to İmralı, where Öcalan is serving a prison term, Ergin said information will be shared with the public when there are new developments. Ergin also said that there is no change expected in the repentance law. The latest of those laws was put into effect under Article 221 of the Turkish Penal Code (TCK), also known as the “Active Repentance Law.” The article stipulates that terrorists who surrender to security forces will be released without punishment as long as they have not been involved in any armed clashes with security forces or any other terrorist attacks against Turkey. One soldier wounded in provocative Hakkari attack One soldier was wounded in a terrorist assault in Çukurca, Hakkari province, yesterday. Outlawed Kurdistan Workers' Party (PKK) terrorists reportedly launched 10 mortar rounds onto the Dağbaşı military base in Çukurca, patrolled by the third Gendarmerie


Commando battalion. The base is near the Iraqi border. Firing back, the soldiers were able to repel the terrorist group. One soldier was wounded in the crossfire. The wounded soldier was taken from the scene to the Fatih military outpost in Hakkari by helicopter and brought to a military hospital. The attack came just one day after Tuesday's release of a group of 34 people comprising mainly refugees and outlawed PKK militants by Turkish authorities. The group of 34 turning themselves over to Turkey is considered a symbolic move by the PKK initiated by the group's jailed leader, Abdullah Öcalan, who has urged the PKK to send what he calls “peace groups” to Turkey. İstanbul Today's Zaman with wires --------------------------------------------------------------------------------------------------------------- War veterans condemn enthusiastic welcome of returning PKK members Thursday, 22 October 2009 10:59 Todays Zaman ---------------------------------------------------------------- The Association of Social Solidarity for Families of Martyrs and Victims of Terror called a press conference yesterday to voice their criticism of a cheerful welcome of a group of terrorists who surrendered to Turkish security forces on Monday. “The picture at the Habur border gate showed that it was not terrorists who surrendered. It was the government who surrendered. This picture has deeply hurt people who believe in the sacredness of this country,” noted Hamit Köse, the chairman of the association. The terrorist Kurdistan Workers' Party (PKK) turned over a group of its members to Turkish authorities on Monday at the Habur border gate, a groundbreaking move that may lead to the PKK laying down its arms, strengthening the hand of the government in its recently launched democratization package to end the country's decades-old Kurdish problem. The total number of people in the group was reported to be 34. The group was welcomed by a crowd, including Democratic Society Party (DTP) leaders Ahmet Türk and Emine Ayna, DTP party officials and thousands of people who enthusiastically welcomed the group. The crowd chanted slogans in support of the PKK and the terrorist groups jailed leader, Abdullah Öcalan. Highly critical of preparations by the pro-Kurdish DTP for the surrender of the PKK terrorists, Köse said: “They were allowed to set up tents near the border gate days before [the return] and launch a welcome ceremony. They praised crimes committed. This is a crime.” The association was also frustrated over the release of the members of the terrorist group without any punishment. “They said they did not regret their crimes and refused to avail themselves of the repentance law. This is means they do not regret having engaged in acts of terror and shooting bullets at police officers and soldiers,” Köse noted. Upon their arrival in Turkey from the Habur gate, 34 PKK members were interrogated by special public prosecutors who demanded the arrest of five of them for previously issued warrants for promoting the PKK and being a member of the organization. But a civilian court set up at the Habur border crossing decided to free them on their own recognizance. “So-called intellectuals said it would hurt terrorists to ask them if they regret their past crimes. The terrorists said they did not surrender but returned to Turkey as peace envoys. Here I would like to ask our prime minister: How will you protect the rights of our slain soldiers? By forgiving their killers? Or by setting up courts under their feet and sending


prosecutors to their service? I demand answers to my questions,” Köse remarked. Another press conference was held in southern Antalya by the association's branch there. Ali Kuş, the branch chairman, lashed out at the joyful welcome of PKK members by the DTP. “They were neither our soldiers who completed their military service nor pilgrims returning from the holy land. They were treacherous terrorists who shot bullets at our soldiers, police officers, children and even babies,” said Kuş, the branch chairman of the association, and said his association denounced strongly and with hatred the entry of terrorist group members into Turkey as if they had won a victory. “Unfortunately, those bloody-handed terrorists descended from the mountains under the veil of ‘peace envoys.' We denounce their welcome with drummers, PKK flags and banners of Öcalan, the baby killer,” Kuş added. Kuş also said the way PKK terrorists were welcomed in the country was treachery toward Turkey's war veterans. One of the members of the association, Yalçın Kaçar, said he has lost his confidence in the state and the army regarding military service. “Children of middle-class families are killed during their military service. We were talking about our love for the nation and our country, but I don't carry the same feelings anymore. I used to say that I was ready to serve for another time in the army, but I no longer plan to send my son or relatives to the army. I will help my son evade military service if necessary,” he said. Kaçar was wounded during a clash with PKK terrorists during the period he served in the army in the Southeast. ------------------------------------------------------------------------------------------------------------------- US hopes PKK problem will end before US withdrawal

Saturday, 24 October 2009 16:27 TODAYSZAMAN --------------------------------------------------------------- US Ambassador to Turkey James Jeffrey has stated that the US troop withdrawal from Iraq will be completed by December 2011, by which time the US wishes to see the end of the problem of the outlawed PKK in northern Iraq. Jeffrey held a breakfast meeting with a group of journalists at his residence in Ankara yesterday during which he spoke in Turkish. During the meeting, Jeffrey stated that as a sovereign nation, it is up to Turkey to decide how to handle its relations with third countries, but added that Turkey's very close ties with Syria in addition to its currently strained relations with Israel complicate its role as a mediator between the two countries. “If you want to play the mediation role, then you have to maintain your relations with both countries on an equal footing,” he said. Upon a question about the latest row between Turkey and Israel over Turkey's decision to exclude Israel from the Anatolian Eagle multinational exercises as well as over a Turkish state television drama about the Israeli-Palestinian conflict, Jeffrey said the US has been engaging in an intensive effort to convince the new Israeli government to work toward peace with the Palestinians, i.e., Muslims. “We tell the Israelis that ‘when you take a step toward peace, the Muslims will follow suit.' We ask the Israelis to take risks for this. To convince Israel, we have to cite positive


examples, such as Turkish [Muslim]-Israeli relations. But the bad example in Turkish-Israeli relations has been making the job of the US to achieve peace harder. We can, however, convince Israel to take steps toward peace with Muslims if Turkish-Israeli relations are good,” he said. “We do not want to criticize, but this is the case,” he added. PKK and US troop withdrawal Recalling that US troops will complete their withdrawal from Iraq by December 2011, Jeffrey stated that time is running out and therefore the US hopes that the PKK issue will be resolved by then. Jeffrey reaffirmed US support for Turkey's cross-border operations into northern Iraq to pursue PKK terrorists. Jeffrey indicated that supply of real-time intelligence from the US to Ankara as well as Washington's latest decision to seize the assets of three PKK members while declaring them narcotic smugglers are just two examples of Washington's support for Ankara in its fight against the PKK. “We are also telling the Europeans: ‘The PKK has been targeting a NATO member country, i.e., Turkey. Thus you have to take similar steps as the US',” he said. Jeffrey also said during the meeting that he would discuss some details regarding the US supply of real-time intelligence to Turkey for the first time. Real-time intelligence equipment such as unmanned aerial vehicles (UAVs), satellites and U-2 spy planes are very valuable and limited assets for the US and are essential in the fight against al-Qaeda in Afghanistan, said Jeffrey, indicating that gathering intelligence for Ankara shows the importance his country attaches to Turkey's fight against terror. The US is lending its support to Turkey's Kurdish initiative in a general sense, said Jeffrey. However, he added that this is a very sensitive issue and an internal matter for Ankara. He stressed that the Kurdish initiative is not an American plan. --------------------------------------------------------------------------------------------------------------------- Erdoğan says he won’t meet with Baykal after camera controversy Wednesday, 21 October 2009 10:06 Todays Zaman --------------------------------------------------- Erdoğan said he would not meet with CHP leader Baykal during his Justice and Development Party's parliamentary group meeting on Tuesday. Prime Minister Recep Tayyip Erdoğan has announced his decision not to meet with main opposition leader Deniz Baykal to discuss recent efforts to settle the country's Kurdish issue in the wake of a controversy which began after the latter insisted on having the meeting recorded by a television crew. “A tête-à-tête between politicians is not something new; however, a condition to record such a meeting is unprecedented. This is an indecent proposal. This is a proposal that ignores all ethnic principles of politics. There is no meaning in meeting with cameras to be set up with a Big Brother mindset. I was not supposed to meet with Baykal to brainwash him. Nor would I bewitch him. I do not have such talents,” Erdoğan stated. His remarks came during his Justice and Development Party's (AK Party) parliamentary group gathering on Tuesday. Erdoğan sent a one-page letter to the Republican People's Party (CHP) leader last week, asking for an appointment to discuss the government's efforts with him. In a six-page letter Baykal sent Erdoğan on Monday, he said he would like to meet with


the prime minister this week at the CHP headquarters at any time of day so long as he was informed a day in advance. Baykal also added that he would like to have their meeting recorded by a television crew but that the time and place of their meeting's broadcast should be decided upon together. “Compromise is not a sine qua non for democracy. Baykal has been a political actor for years. Has he held his meetings up to this point under cameras? … We have not kept anything secret from our nation. We may have note takers or advisors during our meeting. I am giving my response to Baykal. I will not go meet with him,” noted the prime minister. He also recalled that Parliament would have an open session on the Kurdish initiative where all parties will have the opportunity to disclose their stance on planned moves to settle the long-standing problem. Touching on the surrender of 34 members of the terrorist Kurdistan Workers' Party (PKK) on Monday to Turkish security forces, Erdoğan said: “Is it possible not to be hopeful upon seeing that picture? … Good things are happening in Turkey. We will continue our fight to complete the initiative even if we are alone. The tears of mothers and the blood of martyrs are above all political interests. There are circles who attempt to prevent us from proceeding on our path. Why do you not contribute to the peace process?” asked the prime minister. Erdoğan said the mass surrender of PKK terrorists was part of a “brotherhood project.” “We are together in this country and accept no division under any circumstance. I call on terrorists who are currently in the mountains and in Europe to return to their country. Parties who seek to turn such a return into a political show should act responsibly. Irresponsible statements will not produce any benefits for the process. Representatives of legal bodies should not speak in the name of illegal bodies,” he remarked, referring to recent statements by pro-Kurdish Democratic Society Party (DTP) officials upon the return of PKK members. The surrender of PKK terrorists is expected to strengthen the hand of the AK Party government on the planned initiative toward Kurds to settle their years-long problems. The Turkish government launched an initiative in late July to solve the Kurdish question. The government has yet to provide details, but officials have frequently underlined that the process aims to make every Turkish citizen an equal and free member of a highly developed democracy. PM reproaches Azerbaijan over removal of Turkish flags Erdoğan expressed his regret to see the removal of Turkish flags around monuments in Azerbaijan commemorating Turkish soldiers who died in battle on Azerbaijani soil. The flags were removed after a rapprochement between Turkey and Armenia and the signing of two protocols between the two countries. “We never take a step that could disturb our Azerbaijani brothers. Let them be sure about this. For us, the Azerbaijani flag is as sacred as Azerbaijani soil. Our martyrs resting in Baku are witnesses of this understanding. Let no one test Turkey's sincerity. We should be on alert against provocations. Our Azerbaijani brothers will soon understand what the removal of Turkish flag in Baku means,” he said. -------------------------------------------------------------------------------------------------------------------


Yet another journalist targeted over Ergenekon articles Monday, 19 October 2009 14:22 Todays Zaman ------------------------------------------------------- An operation apparently aimed at deterring journalists from writing articles on an ongoing investigation against a criminal network nested within the state is continuing at full pace, with arrows this time targeting Adem Yavuz Arslan, the Ankara represent Arslan was taken into custody by gendarmes in the early morning hours of Saturday in northwestern Bolu, where he traveled to cover a trip of Felicity Party (SP) leader Numan Kurtulmuş to the city. Gendarmes told the journalist that he has been wanted by police for three months due to an article he penned on retired Gen. Levent Ersöz, who is currently in jail for suspected membership in Ergenekon, a clandestine criminal organization accused of plotting to overthrow the government. “I am a host on a TV program five days a week and write columns for my daily three days a week. I cannot understand how I have been wanted [by the police] for three months. I flew to Iraq last week with Prime Minister [Recep Tayyip] Erdoğan. Why did they not capture me [while I was going through] passport control?” asked Arslan. The journalist faces a probe for violating the confidentiality of the Ergenekon investigation due to an article he wrote on Ersöz on Sept. 26, 2008, when the general was sought as a fugitive in the Ergenekon investigation. Legal action is being taken against newspapers and journalists for covering the Ergenekon case in accordance with Turkish Penal Code (TCK) Article 285, which criminalizes “violation of confidentiality,” and Article 288, which criminalizes “influencing the independent judiciary.” Thousands of such cases have been filed by prosecutors against various press organizations. “My article was not related to the content of the investigation. I wrote about the measures taken by security forces to capture the fugitive. I testified to prosecutors as part of the probe. I thought that was it. Then a suit was filed against me in February, but no notice was sent to me or my lawyer. Then they issued a warrant for me to be brought to testify under police force. I have been wanted [by the police] for three months. I learned about it when I was detained on Saturday,” Arslan told Today's Zaman. What was strange, according to the journalist, was the inability of security forces to capture him for three months. “They all know I am the Ankara representative of the Bugün daily and that I have a TV program. The address of the newspaper is not something secret. How could they not find me? I was detained at 4 a.m. on Saturday in Bolu. I waited for nine hours in the detention center. I had little possibility to communicate with my family. It was hard to reach my lawyer because it was the weekend and very early. Finally, I testified before the prosecutors and was released. The case is still going on,” told the journalist. ‘Journalist prevented from producing reports on Ergenekon’ Arslan is, however, not the first or last victim of the “prohibitive” mindset against journalism in the Ergenekon case. Star columnist Şamil Tayyar was convicted last month for two articles he produced on the ongoing probe, which most analysts argued was a serious blow to freedom of the press and expression in the country. An İstanbul court fined Tayyar and sentenced him to prison time for violating the right to privacy of Ergenekon suspect and journalist Güler Kömürcü. The court originally handed down a sentence of one-and-a-half years in jail, but the sentence was suspended and later


reduced to one year, three months for good behavior during the trial. Tayyar will have five years of probation and will be imprisoned if he commits a crime within that period. The columnist was also fined TL 2,610 for libel against Kömürcü in the media. “Almost every journalist producing reports or articles on the Ergenekon case faces the same fate. How will a journalist work on the case if he is punished for it? Courts do not provide any reasoning for rulings against journalists. Thus, we do not have the right to seek redress at the Supreme Court of Appeals. So, where shall we seek justice?” asked Arslan. The Ergenekon trial, one of the most important in Turkey to date, has been going on for two years since the start of the investigation in 2007. Prosecutors have so far launched 2,400 investigations against newspapers and journalists on the grounds that their reports violated the “confidentiality” and “independent judiciary” of the case. Among those press members, 11 are managing editors, 28 are columnists, 167 are correspondents and the rest are other employees at newspapers. Most cases have been filed against the Taraf, Star and Zaman dailies. “Some are trying to prevent journalists from writing on gangs, illegal groups and unsolved murders. This is a threat against journalism. I am facing around 20 different cases for the articles I wrote,” added Arslan. ------------------------------------------------------------------------------------------------------------------------ CHP sets condition to joining MGK Monday, 19 October 2009 13:52 Hürriyet ------------------------------------------------------------ The main opposition party welcomed the president’s proposal to involve it in the country’s top security board Monday but demanded the right to report a minute of dissent on certain decisions that the party does not endorse. “Reviewing the operating principles of the National Security Council; providing special status for the leader of the main opposition at the council; granting the right to put reserves on certain decisions; and allowing its leader to publicize his or her views on the issues are necessary for the inclusion of the main opposition leader to the MGK,” Mustafa Özyürek, spokesperson for the Republican People’s Party, or CHP, said early Monday, the Anatolia news agency reported. The idea of including the leader of the main opposition came Sunday from President Abdullah Gül in an interview with the Turkish Radio and Television Corporation, or TRT. He said the change would allow the main opposition to be better informed on certain problems of the country that would bring about healthier political discussion. But Gül’s proposal requires constitutional amendments. Government spokesperson and deputy Prime Minister Cemil Çiçek, speaking to reporters Monday, said the proposal was an important one that pundits would analyze in detail. “There is a need for constitutional amendments to realize it,” he said, adding that such amendments could not be made overnight. -------------------------------------------------------------------------------------------------------------------- İstanbul hosts 4th annual orphans' meeting


Monday, 19 October 2009 09:48 Todays Zaman ----------------------------------------------------------------- Orphans from all around the world sent messages to the international community while displaying their dramatic situation during the fourth annual Intern Nearly 6,000 people attended the event. Foreign Minister Ahmet Davutoğlu's daughters, Meymune Nur and Sefine Davutoğlu, were also among the participants. Macedonian, Ethiopian, Lebanese, Iraqi and Palestinian orphans shared their experiences and sorrow with participants during the annual meeting. Speaking at the program, Lebanese orphan Maya expressed her sorrow, asking, “Where are my Palestinian orphan brothers?” hinting at the closed Rafah border gate preventing them from arriving in Turkey. The opening ceremony started with a presentation explaining projects concerning orphans around the world. While delivering the opening speech, İHH's General Director Bülent Yıldırım said the number of orphans has increased corresponding to the increasing amount of wars. He said they organized this meeting to bring together orphans from different parts of the world and to ask people to lend a helping hand. Reminded of an orphan's comments while leaving Turkey last year, “Turkey is my mother,” Yıldırım said there are 143 million orphans and 60 million children who go to bed hungry. “More than 2.5 million children are kidnapped and sold, most of them girls,” said Yıldırım, warning that the numbers will increase unless urgent aid is given to deal with the problem. Noting that they have established an institution for orphans who lost their families as a result of wars, occupation, natural disasters or poverty, Yıldırım said 15,000 Turkish families send TL 70 a month to 15,000 orphans all around the world. The orphans from different countries put on various activities, sending messages to the world about their life and their problems. At the end of the meeting, orphans from different parts of the world unfurled banners saying thank you in different languages. -------------------------------------------------------------------------------------------------------------------- GEO-STRATEGIC ISSUES

Turkish Foreign Minister Davutoglu Proceeds From Bosnia-Herzigovina To Albania Sunday, 18 October 2009 12:07 Time TURK ---------------------- Turkish Foreign Minister Ahmet Davutoglu, who had been holding meetings with officials in Sarejevo, proceeded to Mostar before leaving for Albania. Davutoglu visited Koski Mehmed Pasha Mosque and the historic Mostar bridge.Mostar Bridge built by Architect Hayruddin --one of the students of the legendary Ottoman Architect Sinan-- in 1566 was heavily damaged during the civil war in Bosnia-Herzegovinia. Turkey made huge contributions to the reconstruction and restoration of the bridge which has symbolic significance. Davutoglu later proceeded to Albania. Davutoglu, who arrived in Sarejovo on an official visit Friday, met earlier with Bosnian Presidency member Haris Silajdzic and the two opened the the "Yunus Emre Culture Center". Davutoglu also met with leaders of Bosnia-Herzigovina's political parties in Sarajevo and


gave a conference on Ottoman heritage in Sarajevo. Davutoglu, who arrived in Tirana, Albania Saturday evening, attended a dinner hosted in his honour by Albanian Deputy Premier and Foreign Minister Ilir Meta. Davutoglu is also expected to meet with Albanian Premier Sali Berisha and Parliament Speaker Jozefina Topalli. ----------------------------------------------------------------------------------------------------------------------- Albania, Turkey reaffirm joint view on Balkans, Mediterranean Monday, 19 October 2009 15:02

Todays Zaman ----------------------------------- Foreign Minister Ahmet Davutoğlu was in the Albanian capital of Tirana on Sunday following his earlier visit to Bosnia and Herzegovina, reflecting Turkey's intense interest in the region, an interest which is being further cemented by Ankara's ongoing cha Albania and Turkey agreed to move the position of their bilateral relationship to the highest level, Davutoğlu told reporters on Sunday at a joint press conference following his talks with Albanian Deputy Prime Minister and Foreign Minister Ilir Meta, noting that there were no problems between Ankara and Tirana. The two ministers agreed on a mutual visa exemption, while also deciding to initiate a joint program for the training of Albanian and Turkish diplomats. The two countries have been looking at the Balkans and the Mediterranean from the same point of view, Davutoğlu said, while underlining the significance he attached to a recent agreement between Macedonia and Kosovo, which he believes is an important development for the Balkans. The foreign minister was referring to the fact that Macedonia and Kosovo have settled a long-running border dispute, paving the way for them to establish full diplomatic ties. Parliamentarians in Kosovo voted on Saturday to approve the deal, struck late on Friday, with 81out of the 120 members backing the motion. Their counterparts in Macedonia later ratified the agreement by a vote of 72 to 11 in the 120-member chamber. Kosovo's Prime Minister Hashim Thaci said earlier on Saturday that it respected "the principles of sovereignty, territorial integrity, political independence and the peaceful settlement of disputes." In response to a question, Davutoğlu recalled that during a telephone conversation held on Saturday, Turkey's President Abdullah Gül and US President Barack Obama discussed a wide range of global affairs, including the Balkans. Obama and Gül also discussed “the need for sustained engagement in resolving the Cyprus problem and in promoting stability in Bosnia-Herzegovina,” the White House said in a statement about the conversation. Turkey's diplomatic efforts concerning Bosnia and Herzegovina have visibly accelerated in recent times, Davutoğlu said. However, he warned that the structural transformation observed in Bosnia and Herzegovina should be in line with the principle of protection of its territorial integrity and political unity. Meanwhile, Meta announced that President Gül is expected to pay an official visit to Albania in December. ‘Too early for dissolving OHR’


While in Sarajevo on Friday, Davutoğlu held talks with High Representative and European Union Special Representative for Bosnia and Herzegovina Valentin Inzko and Haris Silajdzic, a member of Bosnia and Herzegovina's tripartite presidency on Friday, as well as with political party leaders Sulejman Tihic, a former member of the tripartite presidency and the current head of the Party of Democratic Action (SDA), and Zlatko Lagumdzija, the head the Social Democrats Party (SDP) -- a party with members from all three ethnic groups. Speaking to Turkish and Bosnian and Herzegovinian reporters later on Friday, Davutoğlu hailed Bosnia and Herzegovina's election as a non-permanent member of the United Nations Security Council for the period 2010-2011. “We accept Bosnia and Herzegovina as a neighbor, although it's not a bordering neighbor of ours,” Davutoğlu told reporters. In response to a question concerning the possible closure of the Office of the High Representative (OHR) in the country, Davutoğlu said Turkey believes that it is too early for such a move. “Certain duties were assigned to him [the OHR] following the Dayton Agreement. We are not convinced that these duties have been fulfilled yet. Closing the OHR without having a functioning structure, a functional state, and without establishing a constitutional framework on which all parties agree may create significant problems,” Davutoğlu said. “Of course, we would like complete sovereignty to be handed over to the Bosnian and Herzegovinian people through closure of the OHR immediately, but it is important that the related decision should be made by the people of Bosnia and Herzegovina and the leaders with whom I met today told me that it's still too early to do so,” he added. Davutoğlu's talks in the region came only days before a key meeting between Bosnian leaders and top European Union and US officials scheduled for Tuesday. The second round of talks on reforming the country's Constitution and unblocking a long-lasting political stalemate is the result of an initiative unexpectedly launched by both Brussels and Washington. The first meeting on Oct. 9, co-chaired by Swedish Foreign Minister Carl Bildt, whose country holds the rotating EU presidency, and US Deputy Secretary of State Jim Steinberg, ended without result. Local leaders were given 10 days to overcome the huge differences in their views over Bosnia and Herzegovina's future before the EU and US diplomats return to Sarajevo with the hope to reach a compromise deal. -------------------------------------------------------------------------------------------------------------------- Turkey seeks regional peace with moral responsibility in mind Sunday, 18 October 2009 17:46

Todays Zaman ---------------------------------- As young men and women were together dancing the “halay,” a dance widely performed in the Middle East, arm in arm, women's voices doing “zılgıt,” or ululating, were heard in the background. The halay is performed both in happy and sad times, while, zılgıt, or “tilili,” is the cry of the Kurdish woman, her voice's exclamation, a shout trilled on the tongue, and is done for uttering words that cannot be voiced both in cheerful times and times of mourning. These were happening on Tuesday during a ceremony at the Öncüpınar border gate on the Turkish side of the Turkish-Syrian border, which witnessed a symbolic gesture


reflecting remarkable progress in bilateral relations between the two countries with the signing of a historic deal by the foreign ministers of the two countries, which had come to the brink of war more than a decade ago. There, Foreign Minister Ahmet Davutoğlu and his Syrian counterpart, Walid al-Moallem, officially signed an agreement to end visa requirements between the two countries. Both Davutoğlu and al-Moallem called Tuesday “a historic day,” while the former also said the day was like a “third Eid for the peoples of Syria and Turkey,” referring to the two Muslim religious Eids in a year. Additionally, Davutoğlu, a professor of international relations, said the day might also be considered a “wedding” since it was uniting the peoples of Syria and Turkey like uniting two families. Zılgıt is also done twice during weddings, firstly when the bride leaves her father's house and secondly when she arrives at the groom and his family's house. The ululation during weddings celebrates the union of the two families. The enthusiastic move displayed at the Öncüpınar border gate was only one aspect of Ankara's bold foreign policy moves regarding its region. Through such moves, Turkey aims at going beyond a “zero-problem policy” in its neighborhood by reaching out for the creation of an atmosphere of maximum cooperation among all its neighbors. The ceremony at the Öncüpınar border gate was a means for remembering the notion and meaning of fraternity in these lands, which have a centuries-long history full of both deeply rooted grievances as well as unique examples of joy shared by peoples of different ethnic origins. Turkey and its neighbors have shared such a history, which led to the composing of thousands of songs in common with themes of love, exile and migration, one of which is “Sarı Gelin” (Sarı Gyalin in Armenian) (Yellow Bride). The Sarı Gelin/Sarı Gyalin song, commonly sung everywhere by Turks and Armenians as well as Azerbaijanis and Persians, was sung together by a visiting Armenian delegation and locals of Bursa earlier this week when the city hosted a World Cup qualifying match between the national teams of Armenia and Turkey that brought together the presidents of the estranged neighbors. Choreography and diplomacy Looking at the calendar of diplomatic actions involving Turkey just during this past week might be helpful in understanding whether Ankara's foreign policy is guided by words or deeds -- without forgetting that words do also matter as Holocaust survivor and Nobel Peace Prize laureate Elie Wiesel once observed that “words can sometimes, in moments of grace, attain the quality of deeds.” Oct. 10, Saturday: Davutoğlu and his Armenian counterpart, Edward Nalbandian, signed two protocols in Zurich for re-establishing their diplomatic relations and opening their joint border. Oct. 13, Tuesday: While Davutoğlu and al-Moallem officially signed an agreement to end visa requirements between the two countries, the Syrian city of Aleppo and the Turkish city of Gaziantep were venues of a ministerial-level meeting of the High-Level Strategic Cooperation Council, with the first part of the meeting being held in Aleppo and the second in Gaziantep. Oct. 14, Wednesday: The presidents of Turkey and Armenia watched a World Cup soccer match side-by-side in a show of unity meant to help defuse opposition to an agreement to reopen their border and restore relations. Turkey's president, Abdullah Gül, and Armenia's Serzh Sarksyan shook hands and smiled to applause in the tightly policed


stadium, in a scene unthinkable before the two countries launched a peace process. Oct. 15, Thursday: Prime Minister Recep Tayyip Erdoğan was in Baghdad, where Turkey and Iraq took a giant step forward to boost ties, signing more than 40 agreements ranging from fighting Kurdistan Workers' Party (PKK) terrorism to energy cooperation and water sharing. Erdoğan and his Iraqi counterpart, Nouri al-Maliki, presided over the first joint cabinet meeting of the two governments under the High-Level Strategic Cooperation Council. The calendar above in a way reflects that choreography was not only in the dances performed at the Öncüpınar border gate. In remarks admitting delicate planning behind the calendar, Turkish diplomatic sources have told Sunday's Zaman that the fact that this visa agreement with Syria followed the signing of protocols with Armenia for the normalization of ties and that Erdoğan's visit to Baghdad came after Sarksyan's visit to Bursa at the invitation of his Turkish counterpart, Gül, to watch the 2010 World Cup qualifying second-leg match between the Turkish and Armenian national teams have “not been a coincidence at all.” Such a calendar is a message to both governments and peoples, the same diplomatic sources, speaking on condition of anonymity, said. According to the sources, the message the Armenian side should read from the Syrian-Turkish border opening is clear: “If we are lifting visa requirements for a border that was at one time mined and used as a refuge by terrorists, then we can easily open the border with Armenia. However, to do so, Armenia, like Syria, should clearly state its intention for permanent peace with Turkey.” At a news conference held in the border city of Gaziantep on Tuesday evening at which Syrian and Turkish ministers responded to questions following the first ministerial-level meeting of the High-Level Strategic Cooperation Council, a Syrian journalist recalled Davutoğlu's academic work and the concept of “Strategic Depth,” a brainchild of the minister. The name of the concept is also the title of an international relations book penned by Davutoğlu and published in 2001. In response to the Syrian journalist's question on regional cooperation, Davutoğlu particularly highlighted the notion of “moral depth,” which he said should not be ignored while pursuing foreign policy goals. ------------------------------------------------------------------------------------------------------------ Turkey and Albania agree to introduce visa exemption Sunday, 18 October 2009 14:16 BBC ---------------------------------------------------- A ship carrying 76 suspected illegal migrants has been seized off Canada's Pacific coast, officials say. Those on board the ship said they were trying to reach Canada, according to local authorities. The identity of the migrants was not confirmed, although Canada's public safety minister said there were indications they were from Sri Lanka. He said it appeared to be a case of human smuggling. The migrants, all men, were said to be in good health. The merchant vessel, named Ocean Lady, was intercepted by a navy frigate off Vancouver Island before being escorted to a dock in Ogden Point in Victoria, British Columbia.


Officials there were carrying out health and safety and immigration checks. Those on board the ship were pictured wearing civilian clothes. Some were shirtless. "The signs do point toward human smuggling," said the public safety minister, Peter Van Loan. Several ships attempting to smuggle migrants from China to Canada's Pacific coast were intercepted off Vancouver Island a decade ago. ------------------------------------------------------------------------------------------------------------------- Turkish President Speaks To U.S. President By Phone Sunday, 18 October 2009 12:05

TIME TURK --------------------------------------- The Turkish president spoke to the U.S. president by phone on Saturday. The White House said that Turkey's President Abdullah Gul had a phone talk with U.S. President Barack Obama, and the two presidents discussed a number of issues regarding the broad strategic dialogue between the United States and its key ally Turkey. Obama and Gul underlined importance of historic progress in normalization of Turkish-Armenian relations, and said initiatives should continue. The two president reviewed the situation in Afghanistan, while Obama expressed his gratitude for Turkey's contributions to this country. They agreed to go on cooperating on this matter. Leaders also discussed settlement of Cyprus problem and supporting Bosnia-Herzegovina's stability. Gul and Obama also underscored importance of being in continuous consultation regarding significant global issues. --------------------------------------------------------------------------------------------------------------- Pakistan To Decorate Turkish Premier With Its Medal Of Merit Monday, 19 October 2009 13:37 Time Turk ----------------------------------- President Asif Ali Zardari of Pakistan will decorate Turkish Prime Minister Recep Tayyip Erdogan with Pakistan's highest ranging medal. Prime Minister Erdogan will be paying a state visit to Islamabad between October 25 and 26. Pakistani Presidential Office said in statement it posted on Monday that Prime Minister Erdogan would be decorated with Pakistan's state medal of merit because of his contributions to improvement of political and economic relations between the two countries and being a supporter of Pakistan in the international platform. The award will be presented to the Turkish prime minister by President Zardari at a ceremony which will be held with the participation of members of the government, jurists, parliamentarians and representatives of foreign missions. Prime Minister Erdogan is expected to sign a series of agreements with his Pakistani counterpart Yousuf Raza Gilani during his visit to Islamabad. Erdogan will also visit Muzaffarabad, capital city of Kashmir, which was devastated by a


major quake in 2005. He will inspect humanitarian efforts by the Turkish relief agency, Red Crescent, in the city. The 7.6-magnitude earthquake killed at least 79 thousand people and left thousands of others homeless and destitute. -------------------------------------------------------------------------------------------------------------------- Gül, Obama discuss Afghanistan, Armenia progress Monday, 19 October 2009 09:51 Todays Zaman ---------------------------------------------------- President Abdullah Gül and his US counterpart, Barack Obama, discussed a range of regional issues in a telephone conversation on Saturday, including the situation in Afghanistan and the evolving relations between Turkey and Armenia, the White House has an Obama “expressed appreciation for Turkey's contributions [in Afghanistan], and the two leaders agreed to work closely together in the critical weeks ahead,” the White House said of the telephone conversation. The call came as Obama is considering whether to vastly expand the amount of US resources invested in the eight-year war, including deploying tens of thousands more troops amid some of the conflict's worst violence and an Afghan government roiled by allegations of fraud in August elections. Turkey is currently continuing its support of the NATO-led International Security Assistance Force (ISAF) with around 800 non-combat troops in Afghanistan. The Turkish troops were in charge of the rotating leadership of the Kabul Regional Command between April and December of 2007. The Kabul Regional Command was created in the summer of 2006 under the joint leadership of Turkey, France and Italy as part of ISAF in Afghanistan. Turkey is readying to assume the leadership of the Kabul Regional Command once again in November and the number of non-combat Turkish troops there will be increased to 1,600 when it takes up the leadership on Nov.1. Turkey has constantly voiced its determination not to send any combat troops to Afghanistan. The telephone conversation with Gül covered a range of issues, “reflecting the broad strategic dialogue the United States conducts with this key ally,” the White House said in a statement. The two leaders also spoke about the “historic progress” being made to normalize relations between Turkey and Armenia “and the importance of maintaining the momentum in this important effort,” it added. Earlier this month, Turkey and Armenia signed two protocols aimed at opening up diplomatic relations, bilateral ties and their common border after years of hostility. On Friday, Armenia backed Turkey's efforts to join the European Union, saying it would serve its own interests in pursuing closer relations with the EU. Gül and Obama in addition discussed “the need for sustained engagement in resolving the Cyprus problem and in promoting stability in Bosnia-Herzegovina,” the White House said. “The two presidents agreed on the importance of continued consultations on these and other key topics on the global security agenda.” The telephone conversation between Gül and Obama came just weeks before a planned working visit to Washington by Prime Minister Recep Tayyip Erdoğan at the invitation


of Obama. The White House statement, meanwhile, did not elaborate on whether the two presidents also discussed the recently heightened tension in relations between Turkey and Israel. Tension prevails in the ties between Israel and Turkey, particularly since Ankara's harsh criticism of Israel's three-week offensive in the Hamas-ruled Gaza Strip in December and January. ------------------------------------------------------------------------------------------------------------------------ Nazarbayev says he is eager to supply oil for BTC pipeline Monday, 19 October 2009 09:49 Todays Zaman ------------------------------------ Kazakh President Nursultan Nazarbayev gathered with a small group of Turkish journalists last week in Astana ahead of his upcoming official visit to Turkey. While hailing the current course of affairs in bilateral relations between Kazakhstan and Turkey, Kazakh President Nursultan Nazarbayev has expressed his country's willingness to supply oil to a pipeline transporting Caspian crude oil to Western markets through Turkey's Mediterranean port of Ceyhan. Nazarbayev's remarks came in Astana where he gathered with a small group of Turkish journalists last week ahead of his upcoming official visit to Turkey later this week at the invitation of his Turkish counterpart, Abdullah Gül. “Even before one hour passed after we declared our independence, your then-president, late Turgut Özal, had directly called and congratulated me,” Nazarbayev told Turkish reporters, without being able to hide his strong emotions, speaking with a shaky voice when talking of Özal. Turkey recognized Kazakhstan on Dec. 16, 1991, on the same day Kazakhstan declared its independence. Diplomatic relations between the two countries were established in March 1992. The two sides have constantly expanded the areas for cooperation and achieved satisfactory results since the independence of Kazakhstan. Common historical and cultural ties significantly contributed to rapid development of bilateral relations and cooperation between the two countries. “Overall, Turkey and Kazakhstan are engaged in strategic cooperation both in international and regional arenas. In other words, the two countries have been supporting the policies of each other. I believe that this relationship will further increase to a higher level upon my visit,” Nazarbayev said, citing Turkish construction companies' investments in Kazakhstan, 28 Kazakh-Turkish high schools in his country and the Conference on Interaction and Confidence-Building Measures in Asia (or CICA), to which Kazakhstan and Turkey are members, as some of the concrete examples of bilateral cooperation between Astana and Ankara. “In the near future, we want to lend support to the Baku-Tbilisi-Ceyhan [BTC] pipeline,” Nazarbayev added, referring to the pipeline that currently brings crude oil from Azerbaijan's Caspian fields to Turkey's Ceyhan port via Georgia. Upon these remarks, Nazarbayev was reminded of French President Nicolas Sarkozy's visit to Astana, which took place in the first week of October. During the visit, Kazakhstan awarded a consortium of French companies a deal to take part in building a


crucial $2 billion oil pipeline linking the vast Kashagan field to the Caspian. Energy supplies through the route will be transported across the inland sea by tankers to Azerbaijan and pumped by the pipeline westward to Europe, circumventing Russia. Kashagan has been hit by delays and soaring development costs and is not expected to begin production until 2012. “This is an extremely important project that will become the main artery to transport Kazakh oil to Europe,” Nazarbayev told reporters at the time. When asked by Turkish journalists whether the deal between Kazakhstan and France was retribution at the probable supply of Kazakh oil to the BTC pipeline, Nazarbayev said: “As you know, when the BTC was not yet prepared, Kazakh oil was being transferred to the Black Sea via the north Caucasus, being sent to the global market from there. But now the BTC pipeline is completed and agreements are signed between Azerbaijan and Turkey. We have made a decision to transport 10 million tons of oil to the BTC from our port-city of Aktau.” In order to transport the vast amount of oil in Kashagan field, Kazakhstan will need alternative routes, Nazarbayev added, noting that the deal with the consortium of French companies stemmed from such a need. “Five years later, the BTC pipeline itself will expose its own strategic agenda. However, there is a point that should be taken into consideration here, which is the fact that the Baku oil will be diminished five years later. And in this situation, there will be more need for Kazakh oil in the BTC pipeline,” he said. Critics say the BTC pipeline, launched in 2005, would lose its economic profitability if it is not supplied with oil from Kazakhstan. “We will start drilling oil in Kashagan in 2013, and the total amount of annual reserve of this oil will reach 120 tons. That's why we need new corridors and new routes. One of these routes is the Samsun-Ceyhan route via the Black Sea and the oil refinery to be built in Ceyhan; we want to take part in the construction of this refinery,” Nazarbayev said. In response to a question, the Kazakh president said a resolution of the Nagorno-Karabakh conflict would shorten the distance through which Kazakh oil would be transported to the BTC pipeline. Nazarbayev is scheduled to arrive in Turkey on Wednesday for a four-day official visit. While in Ankara, in addition to holding talks with Gül, Nazarbayev will also address Parliament. The Kazakh president, who will be accompanied by 200 businesspersons, will discuss bilateral relations and cooperation in tourism, education, trade and industry with Turkish officials. He will also attend the Turkish-Kazakh Business Forum, which will be held in İstanbul. Kazakhstan is an important economic partner of Turkey, and cooperation between the Turkish and Kazakh authorities has played a major role in the development of Kazakhstan. Earlier this month, a memorial for the founder of the Turkish Republic, Mustafa Kemal Atatürk, was inaugurated in Astana at a ceremony with the participation of Nazarbayev. “The inauguration ceremony of the Atatürk Memorial in Astana is considered to be a sign of the satisfactory level of cooperation and the friendly and brotherly relations between Turkey and Kazakhstan emanating from our common history, and all the efforts of the


Kazakh side in this respect are greatly appreciated by the Turkish side at all levels,” the Foreign Ministry said at the time in a written statement. ---------------------------------------------------------------------------------------------------------------------- Turkey, Kazakhstan take step for strategic partnership Friday, 23 October 2009 13:09 Todays Zaman ----------------------- The presidents of Kazakhstan and Turkey on Thursday signed a strategic partnership agreement, with Kazakh President Nursultan Nazarbayev suggesting that the two countries were already strategic partners even before the signing of the deal. Nazarbayev, who arrived in Ankara on Wednesday evening for an official visit at the invitation of his Turkish counterpart, Abdullah Gül, was speaking at a joint press conference following his talks with Gül at the Çankaya palace. Turkey recognized Kazakhstan on Dec. 16, 1991, the same day Kazakhstan declared its independence. Recalling Turkey's swift recognition of his country's independence, Nazarbayev underlined that their bilateral relations have always been positive since then, with no problems at all and cooperation in almost every field. The visiting president cited Turkey's Muslim, secular and democratic characteristics as an advantage, while praising Turkey's regional efforts. Noting that the two countries had just signed a strategic partnership, Nazarbayev said the strategic aspect of the partnership between Ankara and Astana has always been there. “We have much more to do in cultural and historical areas and in the Turkic world for the next generations,” he said, noting that he believes bilateral agreements would help improve already good relations. In response to a question, the Kazakh president said the amount of Turkish investment in Kazakhstan since 1993 has been around $1 billion, while Kazakh investment in Turkey during the same period of time has been $4 billion. “This amount is not sufficient for the two sibling countries. Kazakhstan has so far attracted $25 billion in investment. In the case of Turkey, investment is around $1 billion,” Nazarbayev said. Ankara and Astana aim to increase the annual trade volume between the two countries to $5 billion from the current $2.5 billion. “Relations between Turkey and Kazakhstan cannot be measured in money. Our confidence in Turkey cannot be measured with any kind of monetary value. Of course, we still have much to do,” he continued, reiterating his country's support of the transportation of Caspian natural gas to Europe via Turkey. Noting Turkey's desire to become a transit country in the energy field, he added, “The transport of Kazakh oil and gas through Turkey will work in favor of both Kazakhstan and Turkey.” The Kazakh leader is accompanied on his trip to Turkey by a large delegation of ministers and businesspersons, reflecting his eagerness to develop economic and commercial ties between his country and Turkey. In an interview with a small group of Turkish journalists held ahead of his visit, Nazarbayev expressed his country's willingness to supply oil to a pipeline transporting Caspian crude oil to Western markets through Turkey's Mediterranean port of Ceyhan while hailing the current course of affairs in bilateral relations between Kazakhstan and


Turkey. “Overall, Turkey and Kazakhstan are engaged in strategic cooperation in both the international and regional arenas. In other words, the two countries have been supporting each other's policies. I believe this relationship will further increase to a higher level with my visit,” Nazarbayev said. Following his talks with Gül, Nazarbayev attended a luncheon hosted in his honor by Prime Minister Recep Tayyip Erdoğan. Later in the day, he had talks with Parliament Speaker Mehmet Ali Şahin and addressed Parliament. In his address, when Nazarbayev recalled that earlier this month a memorial for the founder of the Turkish Republic, Mustafa Kemal Atatürk, was inaugurated in Astana at a ceremony with his participation, he was enthusiastically applauded by members of Parliament. Summarizing his country's evolution since gaining independence, Nazarbayev underlined that all along this process “they have received support from brotherly Turkey.” “We are also happy with Turkey's successes,” he said, citing Turkey's regional role as well as its economic achievements. “Turkey has turned into a country with a big power in global politics. Its role in resolving conflicts will continue,” he added, noting his country's support for Turkey's policy of zero problems with neighbors. “We support Turkey's membership in the European Union. We believe that being a strategic partner with Russia and assuming a balanced policy toward China will increase Turkey's prestige,” Nazarbayev said. Nazarbayev is expected to attend the Turkish-Kazakh Business Forum, which will be held in İstanbul today with a strong showing by both Kazakh and Turkish businesspersons. Also today, the Dialogue Eurasia Platform (DA), which aims to build bridges among Eastern European and Central Asian countries with which Turkey has had historical, religious and linguistic connections for centuries, will decorate Nazarbayev with an award for his “vast experience as a statesman, impressive courage, leadership, unifying policy, tolerance and contribution to world peace.” A award ceremony will be held today at the Joint Administration of Turkic Culture and Art (TÜRKSOY) in İstanbul. ---------------------------------------------------------------------------------------------------------------------- Kazakh President attends Turkey-Kazakhstan Business Forum Saturday, 24 October 2009 10:57 TIME TURK ---------------------------------- President Nursultan Nazarbayev of Kazakhstan said that his country benefitted much from its relations with Turkey. President Nazarbayev, who is currently paying a state visit to Turkey after an interval of 8 years, attended the Turkey-Kazakhstan Business & Investment Forum. He invited Turkish firms to invest in Kazakhstan. "We are ready to provide Turkish businessmen with all necessary opportunities," he said. "We also need to further improve our cultural and historical relations. We need to establish the Turkish world Academy as well as Turkish World Museum and Library," he said. Referring to the Samsun-Ceyhan oil pipeline, President Nazarbayev said, "The pipeline will transport only Kazakh oil. Currently, Kazakhstan's oil production is 70 million tons.


We will add some 25 million tons of oil to this amount." Following the meeting, President Abdullah Gul and President Nazarbayev partook in a official dinner. ----------------------------------------------------------------------------------------------------------------- Turkish Premier Offers His Condolences To Iranian President Monday, 19 October 2009 13:33

TIME TURK --------------------------------------------------- Turkish Prime Minister Recep Tayyip Erdogan offered his condolences following Sunday's bomb attack in southeastern Iran. Erdogan called President Mahmud Ahmedinejad and expressed his profound sorrow over killing of 42 people in the attack. "Terrorism is our common enemy. This attack, once again, revealed the importance of existing cooperation in fight against terrorism. We commiserate with those who lost their beloved ones in the attack. We will be paying a state visit to Iran in the coming days. We want to discuss ways to further improve our cooperation in fight against terrorism during the visit," he told the Iranian leader. A suicide bomber killed 42 people including senior commanders of the Revolutionary Guard in the city of Sarbaz in Sistan-Baluchestan. Some 50 people were wounded in the attack. --------------------------------------------------------------------------------------------------------------------- Turkish Foreign Minister: "Neither Armenia Nor Any Other Country Could Dare To

Claim Any Part Of Turkish Territories"

Wednesday, 21 October 2009 16:42

Todays Zaman ---------------------------------------------------

Turkish Foreign Minister Ahmet Davutoglu said that neither Armenia nor any other country could dare to claim any part of Turkish territories. Davutoglu addressed the parliament and gave information about the protocols signed by Turkey and Armenia on October 10 to establish diplomatic ties and develop bilateral relations. "Turkey's foreign policy is based on a sound ground. The most fundamental element is to create a zone of peace, prosperity and stability around our country. This is the most important target of our foreign policy. We will maintain our efforts to ensure permanent peace, prosperity and stability in all adjacent areas including the Balkans, the Caucasus and the Mediterranean," we said. "We pursue a quite principled policy to this end. We are trying to put into practice four main principles to develop such an understanding in those areas. The first of those


principles is to create and ensure an order of security and stability for everyone in the adjacent areas. The second is to consolidate a ground of political dialogue to resolve all problems through dialogue. The third is to create mutual economic dependencies and to remove all obstacles in front of a peaceful atmosphere through such an economic order. And the last one is to pave the way for co-existence of different religious, ethnic, and ideological elements by internalizing those differences of countries and societies," he said. "The current status quo in the Caucasus does not correspond to our vision. Because there are frozen crises which can emerge and lead to a security problem in the region. Those crises are just like bomb which are ready to blow. If we fail to resolve them through peaceful methods, they can pose risks. And there is not a sound ground of political dialogue based on mutual confidence among the countries in the southern Caucasus to remove those crises. Except from the trilateral projects among Turkey, Azerbaijan and Georgia, there are not sufficient economic projects in the region. It is impossible to ensure a lasting peace in the region without providing mutual economic dependency and an area of economic prosperity," he said. "Because of the current status quo in the Caucasus, some part of Azerbaijani territories have been under occupation for the last 17 years. Armenia, on the other hand, is getting poorer and poorer and its population has already begun leaving the country. And Turkey cannot act efficiently because of the current status quo. Therefore, we must change it. We have three important targets to this end: First of all, we need to establish good neighborly relations with Armenia. Secondly, we want to set up a channel of healthy communication between Turkish and Armenian peoples. And thirdly, we aim at accelerating the process to resolve the Upper Karabakh dispute between Azerbaijan and Armenia," he said. Davutoglu added, "neither Armenia nor any other country could dare to claim any part of Turkish territories. And the protocols we signed with Armenia ensure this Gül discusses Karabakh dispute with Medvedev President Abdullah Gül had a phone conversation with Russian President Dmitry Medvedev about the situation in the Caucasus on Monday, sources at the Turkish Presidency announced. President Gül reportedly asked Russian President Medvedev to boost efforts to solve the Nagorno-Karabakh conflict, a territorial dispute between Azerbaijan and Armenia. During the phone conversation, Gül asked the Russian president to accelerate the process to find a lasting solution for the Nagorno-Karabakh dispute, adding that the determinant actor in the South Caucasus is Russia. Presidential sources labeled the Gül-Medvedev talk a “long, comprehensive and useful conversation to make stability and peace in the South Caucasus dominant.” Pointing to the troubled South Caucasus region, political commentators argue that even positive gestures could destabilize the region. Amid a growing crisis with Azerbaijan due to the Turkey-Armenia rapprochement, President Gül is working hard to push international actors to work for a solution to the problem. While the process of the ratification of the protocols to normalize relations between Turkey and Armenia is in progress in both the Turkish and Armenian parliaments, President Gül also met with the Minsk Group's French, Russian and American co-chairs, who have striven for 17 years to solve the problem, during October to ask them to intensify peace negotiations to find a solution for the Nagorno-Karabakh conflict.


During the conversation, Medvedev and Gül also reportedly spoke of Turkish-Armenian relations, and Gül explained how the Karabakh conflict impacted relations between Azerbaijan, Armenia and Turkey. “We need your support. We want you to continue your support of the preservation of the peace and stability in the region,” Gül said to Medvedev. In turn, Medvedev promised Gül that Russia would always support peace efforts in the region. Gül and Medvedev also spoke of the South Stream gas project, which is planned to transfer Russian gas under the Black Sea. Medvedev thanked Gül for allowing the use of Turkey's territorial waters in the Black Sea. Gül also recently addressed the same issues while speaking with US President Barack Obama. In addition, during his visit to France Gül asked French President Nicolas Sarkozy to do what he could to accelerate the Azeri-Armenian peace process. “Solve the Nagorno-Karabakh conflict, and let's open the borders together. Let the honor of this be yours,” Gül was quoted as saying to Sarkozy. Süleyman Kurt Ankara. ------------------------------------------------------------------------------------------------------------------------ Turkey pledges punishment for disrespect to Azeri flag Saturday, 24 October 2009 16:24

TIME TURK ---------------------------------------------------- The foreign ministers of Azerbaijan and Turkey have apparently resolved disagreements and misunderstandings which eventually led to the delivery of a diplomatic note of protest to Azerbaijani officials . The foreign ministers of Azerbaijan and Turkey have apparently resolved disagreements and misunderstandings which eventually led to the delivery of a diplomatic note of protest to Azerbaijani officials because of their decision to remove a Turkish flag in front of an embassy building in Baku. Foreign Minister Ahmet Davutoğlu was in Baku on Thursday where he had talks with both Azerbaijani President Ilham Aliyev and his Azerbaijani counterpart, Elmar Mammadyarov, on the sidelines of a foreign ministerial meeting of the Organization of the Black Sea Economic Cooperation (BSEC). Last week, Baku removed Turkish flags from a monument to 1,130 Turkish soldiers who died while fighting for Azerbaijan's independence in 1918. The move was followed earlier this week with the removal of the flag in front of the Religious Affairs Consultancy Office, affiliated with the Turkish Embassy, as well as the flags in front of Turkish schools. Azerbaijani officials cited a law on foreign flags for their removal. “We also have a law on flags, but Azerbaijan is an exception to our flag law. We don't consider the Azerbaijani flag a foreign flag,” Davutoğlu was quoted as saying by the Anatolia news agency while speaking to reporters in Baku, noting that he discussed the issue with Mammadyarov. “We spoke amiably and frankly to remove these misunderstandings. The Azerbaijani flag is the same as a Turkish flag for us,” he said. Tensions escalated when Turkish authorities, upon the request of world soccer's governing body FIFA, banned Azerbaijani flags at a World Cup qualifying match between the Turkish and Armenian national teams earlier this month. The Azerbaijani decision to remove Turkish flags apparently came in response to the ban on Azerbaijani


flags during the soccer game. The image of an Azerbaijani flag thrown in a garbage can was annoying for him, Davutoğlu said, adding: “We're having this incident investigated. In any place in Turkey, there is no writing ‘WC' on garbage cans. Somebody must have written it and taken the picture of this garbage can; this is provocation -- a provocation which aims at sowing seeds of discord between us and our [Azerbaijani] brothers.” Mammadyarov said: “As far as the crisis over the flag is concerned, Mr. Davutoğlu has told us that Turkey is investigating the incident and that those who are guilty will be punished. We agreed to resolve any problems jointly.” Later, Davutoğlu and Mammadyarov visited both the Turkish cemetery and the Azeri cemetery where soldiers who died for Azerbaijan's independence in 1918 are buried. --------------------------------------------------------------------------------------------------------------------- Greek PM urges withdrawal of Turkish troops from Cyprus Wednesday, 21 October 2009 13:29 Todays Zaman ------------------------------------------ New Greek Prime Minister George Papandreou has called on Turkey to withdraw thousands of its troops from Cyprus to help ongoing talks aimed at reunifying the divided island. The long-festering dispute on the eastern Mediterranean island has poisoned relations between Greece and Turkey, both NATO members, undermining the alliance and European Union cooperation on security while hindering Turkey's bid for EU membership. “It's a matter that either we solve it to unite us, or it will keep us divided,” Papandreou, who is also handling his government's foreign affairs, said on Monday after talks with Greek Cypriot leader Dimitris Christofias. “Certainly, occupation troops cannot be allowed to exist in an EU-member state, especially by an EU-candidate country,” said Papandreou, who is paying his first official visit abroad as prime minister after winning general elections earlier this month. Also earlier this month, days after being elected, Papandreou paid his first foreign trip to Turkey by attending an informal meeting of the Southeast European Cooperation Process (SEECP), which was hosted by Foreign Minister Ahmet Davutoğlu. Year-long talks between Christofias and Turkish Cypriot leader Mehmet Ali Talat have so far produced little real progress. Christofias faults Turkey for restricting Talat's ability to negotiate an agreement on complex issues such as power-sharing under a federal structure and arrangements on property lost during the war. Turkey says it fully backs the peace process. Christofias renewed his support for Turkey's bid to join the EU. But he added: “We're not masochists. … We can't accept Turkey proceeding to full union membership without first achieving a Cyprus settlement.” Turkey sent its troops to Cyprus in 1974 following a decade of attacks on Turkish Cypriots by Greek Cypriot groups favoring unification with Greece and eventually a Greek-inspired coup on the island. Turkey now has more than 30,000 troops deployed on the Turkish part of the island. Cyprus joined the EU as a divided island when Greek Cypriots in the south rejected a UN reunification plan in twin referendums in 2004, even though the Turkish Cypriots in the


north overwhelmingly supported it. The issue of security guarantees is one of the thorniest disputes that Talat and Christofias need to tackle during the negotiations. ----------------------------------------------------------------------------------------------------------------------- Ankara moves toward ‘privileged partnership’ with Moscow Wednesday, 21 October 2009 10:03

TIME TURK ------------------------------------------------ Turkey, which has already announced its intention to hold a joint cabinet meeting with Russia similar to those recently held with Iraq and Syria, hopes to hold such a meeting with its Black Sea neighbor in early December. “We have proposed a similar step [to the joint cabinet meetings with Syria and Iraq] with Russia, but there is nothing being implemented at the moment,” Prime Minister Recep Tayyip Erdoğan said last week before departing for a visit to Iraq, during which he and the nine ministers accompanying him held a joint cabinet meeting with the Iraqi government. Erdoğan and his Iraqi counterpart, Nouri al-Maliki, co-chaired the meeting of the Turkish-Iraqi High-Level Strategic Cooperation Council. Earlier last week, a ministerial-level meeting of the Turkish-Syrian High-Level Strategic Cooperation Council was held in the Syrian city of Aleppo and the Turkish city of Gaziantep. At the time, Erdoğan said an agreement to initiate a similar mechanism with Russia was signed when Russian Prime Minister Vladimir Putin visited Ankara in August, when Turkey and Russia signed about 20 agreements on cooperation in a number of areas, including, most notably, energy. “We will put into force a similar mechanism with Russia.” The timing of the meeting planned to be held with Russia has been found particularly interesting as it comes just before a December summit of the European Council. Observers suggest that the planned meeting with Russia is a message to European Union members who offer a “privileged partnership” to Turkey instead of full EU membership. Turkey will show how a privileged partnership is constituted through the meeting with Russia, the same observers argue. Turkey firmly rejects any option that falls short of full EU membership. The EU opened accession talks with Ankara -- an EU candidate since 1999 -- in October 2005, but they have been progressing slowly amid opposition from France and Germany. The unresolved Cyprus dispute and a slowdown of reforms in Turkey are other factors hampering the accession process. French President Nicolas Sarkozy and German Chancellor Angela Merkel are the most high-profile European politicians opposed to Turkey's accession. Sarkozy claims Turkey does not belong in Europe, while Merkel promotes privileged partnership, an option Ankara categorically rejects. In Berlin in May, Merkel and Sarkozy made a joint statement declaring that they shared a common position regarding Turkey's accession to the EU, in that it should be offered a privileged partnership, not full EU membership. The first step toward holding a joint cabinet meeting with Russia was taken on the sidelines of the United Nations General Assembly in New York in September, with Russian Foreign Minister Sergey Lavrov responding positively to a proposal by his counterpart, Ahmet Davutoğlu. Moves to organize the joint meeting have been continuing since then. The meeting between Russia and Turkey is planned to be held at a


ministerial level. Meetings with Iraq and Syria, on the other hand, are chaired by the prime ministers. ------------------------------------------------------------------------------------------------------------------------ Macedonian President in Turkey Saturday, 17 October 2009 USAD PUBLICATIONS ---------------------------------------- Turkish President Abdullah Gul said that Turkey was the closest friend of Macedonia, and proved its friendly ties by becoming the first country which recognized Macedonia with its constitutional name and nation. President Gul and his wife Hayrunnisa Gul hosted a banquet in honor of President Gjorge Ivanov and his wife Maya Ivanov, who are currently in Ankara on a state visit, at the Cankaya Presidential Palace. President Gul said at the banquet that there had been great historical and cultural ties between Turkish and Macedonian peoples. "Macedonia takes place in the heart of the Balkans in which we want to ensure stability and prosperity. We wish that Macedonia will contribute this process by integrating with European-Atlantic institutions. Turkey is the closest friend of Macedonia, and proved its friendly ties by becoming the first country which recognized Macedonia with its constitutional name and nation," he said. President Ivanov, on his part, said that his country attached great importance to development of relations and cooperation with Turkey. He added that they considered Turkey a unique friend, a powerful supporter and ally and partner. ------------------------------------------------------------------------------------------------------------------------------------------------ Turkish Foreign Minister Underlines Importance of Strong Bosnia Saturday, 17 October 2009 USAD PUBLICATIONS ----------------------------------------- The Turkish foreign minister underlined late on Friday the importance of a strong and stable Bosnia-Herzegovna. Turkey's Foreign Minister Ahmet Davutoglu said that a strong and stable Bosnia-Herzegovina was important for both the Balkans and the global stability. "Election of Bosnia-Herzegovina as a non-permanent member of the United Nations (UN) Security Council is a good example of how strong Bosnia-Herzegovina has become and how much it can contribute to global peace," Davutoglu told Bosnian and Turkish reporters after holding talks in Sarajevo. Davutoglu said he was visiting Bosnia-Herzegovina for three reasons, and enumerated them as bilateral relations, Turkey's assuming the rotating presidency of the Southeast European Cooperation Process, and Bosnia-Herzegovina's undergoing a significant reform process. The minister said Turkey was eager to further improve bilateral relations, and also wanted to exert many efforts to ensure peace and stability in Southeast Europe and the Balkans during its presidency of the Southeast European Cooperation Process.


Davutoglu underscored importance of Bosnia-Herzegovina's having a strong political structure taking its territorial integrity and political unity under guarantee, and improving its relations with the European Union (EU) and NATO for this country's security and stability. The Turkish minister said that establishing a political structure that would take the political unity under guarantee, bringing forth a democratic structure in which all ethnic and religious elements would participate, ensuring cultural and ethnic peace, creating an efficient and functional state structure, and establishing relations with NATO and EU would make Bosnia-Herzegovina's unity stronger. "Turkey supports every effort that takes Bosnia's territorial integrity under guarantee," he said. Also, Davutoglu said Turkey thought it was early to close the high representation in Bosnia-Herzegovina. "Of course, we want the representation to be closed as soon as possible and Bosnia-Herzegovina's people to take over all sovereignty, however it is Bosnia-Herzegovina's people who will decide on this matter and the leaders I have met said it is still early for that," Davutoglu also said. Davutoglu later delivered a speech in a conference on "Ottoman Heritage and Muslim Societies in Today's Balkans." -------------------------------------------------------------------------------------------------------------------- Prime Minister Erdogan to Visit Pakistan, Iran Saturday, 24 October 2009 USAD PUBLICATIONS ------------------------------------------------ Turkish Prime Minister Recep Tayyip Erdogan will pay formal visits to Pakistan and Iran, a statement said on Friday. Prime Ministry Press Center released a statement and said Erdogan would travel to Pakistan upon First Vice President Mohammad Reza Rahimi. Erdogan is expected to meet Iranian officials during his visit which will last till October 27. invitation by Pakistani Premier Syed Yousuf Raza Gilani, and he would hold talks with Pakistani authorities including President Asif Ali Zardari during his visit between October 25 and 26. After completing his talks in Pakistan, Erdogan will proceed to Iran as the official guest of Iran's ----------------------------------------------------------------------------------------------------------------------- Turkey Urges Israel To End Gaza Blockade Monday, 19 October 2009 USAD PUBLICATIONS

------------------------------------------- Turkish Prime Minister Recep Tayyip Erdogan on Monday urged Israel to end Gaza blockade immediately and called on the international community to take action to fulfill obligations on Gaza, Error! Hyperlink reference not valid. reported. Erdogan made the statement at the opening ceremony of the Istanbul Forum, organized by Stratim, a Turkish non-governmental organization which specializes on energy, the Foundation for Political, Economic and Societal Research (Seta) and the German


Marshall Fund. "This is crucial for the security of both Israel and Palestine, " he said, the Palestine question was at the center of the Middle East problem. "we do not believe that permanent peace and stability can be established in the Middle East unless this problem is resolved," he added. Erdogan said it has been nine months since the Israeli operations in Gaza, and seven months since the Gaza Conference held in Sharm El-Sheikh. "However, the tragedy in Gaza has not come to an end. Even construction materials are not allowed into Gaza for reconstruction of the region. It is impossible to neglect such a picture, such a tragedy," Erdogan said. The Turkish prime minister said that the international community should uphold its commitments, which will benefit not only Palestinians, but also Israelis. "I do not say this just because I am a Muslim. I say this because I am a human being and because of my humanitarian approach, " he said. ------------------------------------------------------------------------------------------------------------------------ ECONOMIC ISSUES Turkish gvt submits new budget to parliament Sunday, 18 October 2009 12:01 Time Turk ------------------------------------ The Turkish government presented on Saturday the budget for 2010 to the parliament. The budget of 2010 forecasts expenditures around 286.9 billion Turkish liras (TL), the revenues around 236.7 billion TL, tax revenues around 192.2 billion TL, and budget deficit around 50.1 billion TL. (One USD is 1.4620 TL) The new budget also projects the Gross Domestic Product (GDP) around 1.2 trillion TL, the growth rate around 3.5 percent, the year-end consumer price inflation around 5.3 percent, exports around 108 billion USD and imports around 153 billion USD. The parliament is expected to adopt the budget in December, at the end of almost two-month debates. Before submitting the draft budget to parliament, Finance Minister Mehmet Simsek told a press conference in which he said that the new budget not only took revenues under control but also raised revenues. Simsek said budget expenditures would be up 7.6 percent, revenues would be up 16.1 percent and tax revenues would be up 18.2 percent in 2010 when compared with 2009 budget performances. Also, Simsek said 2009 year-end budget expenditures would be 266.7 billion TL, revenues would be 203.9 billion TL and budget deficit be 62.8 billion TL. Finance Minister Simsek said the government was not thinking of rising taxes at the moment. Simsek said the government was neither foreseeing a tax reduction in 2010, however he said it might implement new policies according to changing conditions. ------------------------------------------------------------------------------------------------------------------ EBRD revises 2010 growth rate projection for Turkey up to 3 Pc Sunday, 18 October 2009 14:02


TIME TURK ------------------------------------------ European Bank for Reconstruction and Development (EBRD) revised its 2010 growth rate projection for Turkish Economy up to 3 percent. EBRD, which revised down the 2009 economic forecasts for central and eastern European countries, expects fragile recovery in 2010. EBRD, which revised it's projection of contraction rate for Turkey in 2009 by 0.5 percent down to -6 percent, estimates central and eastern European countries to contract by an average of 6.3 percent following steep output declines in the first half of the year. EBRD says signs of positive growth in the third quarter of 2009 suggests that the recession is now bottoming out in many countries, noting however that any upturn in 2010 was likely to be fragile and patchy. "It is also clear that the social costs of the global economic crisis are only likely to be felt in earnest next year, when corporate bankruptcies and unemployment will continue to rise. Growth over the medium term in the EBRD region is also likely to be below the trend experienced over the last decade," said EBRD Chief Economist Erik Berglof. Although EBRD revised its projections for average year on year growth for 2010 up to 2.5 percent --1.5 percent higher than its May forecasts-- it sees this mostly as a reflection of the recovery from a deeper than anticipated downturn in the first half of this year, rather than a more vigorous economy during 2010. EBRD projects a growth rate of 3.0 percent for Turkey, 0.5 percent above the average growth rate projected for all transition countries. ----------------------------------------------------------------------------------------------------------------- Turkish Bus Producers In Busworld Fair In Belgium Sunday, 18 October 2009 12:03 TIME TURK ----------------------------------- Leading bus producers of Turkey are promoting their recent products to the world in Busworld fair in Belgium. Turkish BMC, Temsa, Anadolu Isuzu and Otocar companies and over 25 by-industry firms are participating in the fair that opened in Kortrijk, Belgium on October 16. Busworld Europe Kortrijk is the biggest and oldest specialized exhibition for the coach and bus sector in the world. This biennial exhibition covers four sections: coach and bus builders, accessories, public transportation and tourism.A total of 328 companies around the world, including 49 bus producers, are joining the fair.The fair will stay open till October 21. ------------------------------------------------------------------------------------------------------------------------ Crisis recovery budget drafted without reference to IMF deal Monday, 19 October 2009 09:58 Todays Zaman ------------------------------------------------------------------- The central administration budget for 2010, which focuses on overcoming the economic crisis, was submitted for Parliament's approval on Saturday and includes no specific reference to a potential stand-by deal with the International Monetary Fund (IMF).


Disclosing the details of the new budget at a press conference on Saturday, Finance Minister Mehmet Şimşek said Turkey had prepared its budget while taking into consideration its own needs and the conditions arising from the economic crisis, underlining that talks with the IMF would “proceed on the premises set out in the budget.” The size of the 2010 budget is TL 286.93 billion. It includes a 5.06 percent wage increase for civil servants, in two equal semiannual installments of 2.5 percent. With expected revenue of TL 236.8 billion, the deficit will be approximately TL 50 billion. According to experts, Finance Ministry bureaucrats maintained caution while drafting the budget. The economic gloom in Turkey will persist next year, and the government will stick to its policy of fiscal discipline, they note. The minister stated in his comments that the General Directorate for Budget and Finance remained committed to the primary target of leading Turkey out of the crisis while working on the budget. “We will clench our teeth to maintain fiscal discipline,” he said, adding that the government is planning neither to introduce any new taxes nor abolish existing ones. The draft budget states that public investments will amount to TL 22.3 billion, and energy will enjoy the lion's share of total investment. The second most favored sector in terms of its share in investment will be transportation. The government is planning to allocate a total of TL 1.5 billion to these two areas. The Finance Ministry used the policies and figures proposed in the middle-term financial plan as a basis while preparing the new budget. The directorate tasked with drafting the budget also took requests from all ministries and other state institutions into consideration when trying to balance revenue with expenditure. Şimşek said officials estimated that gross domestic product (GDP) would be TL 1.03 trillion for the year ahead while crafting the budget. Their prediction for GDP growth was 3.5 percent. Ministry bureaucrats anticipate a consumer price index (CPI) of 5.3 percent, $108 billion worth of exports and $153 billion in imports. The minister described their predictions for these major macroeconomic indicators as “quite realistic.” The minister said the projected revenue was raised and expenditures lowered from what they were in the 2009 budget in an attempt to reduce the budget deficit. In the revised budget for this year, expenditures are estimated to hit TL 266.75 billion and revenue TL 203.93 billion, which means a deficit of TL 62.82 billion. This is a large jump of TL 52.4 billion over the original expectation for the 2009 budget. Şimşek said TL 44.8 billion of this extra deficit stemmed from a sharp fall in revenue amid falling economic activity during the worst crisis since the Great Depression. Only TL 7.6 billion resulted from an increase in expenditures, he added. According to the draft budget, transfers to social security institutions will rise 7.3 percent over this year in 2010 and will reach TL 57.7 billion. The government will transfer TL 31.8 billion to the Social Security Institution (SGK) alone in terms of deficit financing. The budget envisages allocating TL 8.4 billion to agriculture, and of this amount, TL 5.6 billion will be in subsidies. The share of revenue coming from local administrations was raised by 17.6 percent to TL 19.1 billion. Including all transfers, the budget envisages allocating a total of TL 22.1 billion to local administrations next year. According to the draft budget, TL 525 million will be spent on the Village Infrastructure


Support Projects (KÖYDES). The allocation for the Scientific and Technological Research Council of Turkey (TÜBİTAK) saw an incremental rise to reach TL 625 million. The minister vowed that the government would do everything necessary to protect low-income earners, with proper wage increases for civil servants, retirees and workers. Like previous budgets, the 2010 budget allocates the largest share of funds to education, as the Education Ministry's annual budget once again surpasses all others, including the projected amount for defense expenditures. The Health Ministry's budget was increased by 12 percent. A Health Ministry project that promotes primary health care and facilitates visits to family practitioners rather than state hospitals, currently being tried in several pilot districts, will be extended to cover all 81 provinces. The state will exclude health expenditures from the main budget for the first time next year, with the exception of parliamentary deputies and their dependents, soldiers, indigents holding green cards and prisoners. Expenditures for treatment and drug expenses will be transferred to the SGK, and the state will allocate a certain amount of funding to the SGK every year. Next year health services for civil servants will also be handled by the SGK. Scholarships for students will increase 13.8 percent, while the allocation for distributing free textbooks to students has been increased by 6.4 percent. ---------------------------------------------------------------------------------------------------------------- "IMF deal to have positive impact on Turkey's growth rate" Saturday, 24 October 2009 12:21 TIMETURK ------------------------------------- Turkish State Minister Ali Babacan said on Friday that, "If Turkey signs a deal with the IMF, and uses an additional source, this will have a positive impact on Turkey's growth rate." "Turkish government has announced its Medium Term Program. In case an agreement can be reached with IMF on the basis of this program, it will be possible to sign a Stand-By deal," Babacan said when asked whether an agreement was necessary with IMF. In an exclusive interview with private NTV channel, Babacan said talks with IMF continued in technical level, "we will make public if a new development occurs". Underlining that Medium Term Program was a coherent program enabling Turkey to stand on its own feet, Babacan said the target was to normalise Turkish economy in the possible shortest time. "If a deal with IMF assists our efforts, we think this agreement will be good for Turkey. But I again say it is not inevitable. It is not a sine qua non. However, the government thinks it would be better if we sign this deal," Babacan added. Responding to a question on growth, Babacan said Turkey would almost be the most rapidly growing country in Europe next year. "2011 will be a better year than 2010," he added. Referring to scenarios of early election in 2010, Babacan said the government did not have such a plan. "The government does not have any anticipation regarding early elections in 2010."


Asked to comment on "return to home", Babacan said some concrete developments were recorded. He said diplomatic efforts started after Daglica raid in 2007. Babacan said it was impossible to accept the incidents that occurred after surrender of PKK members. "Such developments endanger the process. However, the core is that terrorist organization lays down arms." Babacan said this was definitely a state policy, "preventing participation to the organization and encouraging PKK members to quit the organization is very important. There is full agreement, cooperation, dialogue and coordination among the institutions of the state." Asked to comment on Armenia, Babacan said Turkey's move towards Armenia upgraded Turkey's profile in the world. Babacan said Turkey has very special relations with Azerbaijan and would never want them to be damaged and underlined importance of restoration of peace in the Caucasus. --------------------------------------------------------------------------------------------------------------------- The Impact of a Possible Deal with the IMF on Turkish Economy Saturday, 24 October 2009 USAD PUBLICATIONS ------------------------------------------ Turkish State Minister Ali Babacan said on Friday that, "If Turkey signs a deal with the IMF, and uses an additional source, this will have a positive impact on Turkey's growth rate." "Turkish government has announced its Medium Term Program. In case an agreement can be reached with IMF on the basis of this program, it will be possible to sign a Stand-By deal," Babacan said when asked whether an agreement was necessary with IMF. In an exclusive interview with private NTV channel, Babacan said talks with IMF continued in technical level, "we will make public if a new development occurs". Underlining that Medium Term Program was a coherent program enabling Turkey to stand on its own feet, Babacan said the target was to normalise Turkish economy in the possible shortest time. "If a deal with IMF assists our efforts, we think this agreement will be good for Turkey. But I again say it is not inevitable. It is not a sine qua non. However, the government thinks it would be better if we sign this deal," Babacan added. Responding to a question on growth, Babacan said Turkey would almost be the most rapidly growing country in Europe next year. "2011 will be a better year than 2010," he added. Referring to scenarios of early election in 2010, Babacan said the government did not have such a plan. "The government does not have any anticipation regarding early elections in 2010." Asked to comment on "return to home", Babacan said some concrete developments were recorded. He said diplomatic efforts started after Daglica raid in 2007. Babacan said it was impossible to accept the incidents that occurred after surrender of PKK members. "Such developments endanger the process. However, the core is that terrorist organization lays down arms." Babacan said this was definitely a state policy, "preventing participation to the organization and encouraging PKK members to quit the organization is very important.


There is full agreement, cooperation, dialogue and coordination among the institutions of the state." Asked to comment on Armenia, Babacan said Turkey's move towards Armenia upgraded Turkey's profile in the world. Babacan said Turkey has very special relations with Azerbaijan and would never want them to be damaged and underlined importance of restoration of peace in the Caucasus. Saturday, 24 October 2009 -----------------------------------------------------------------------------------------------------------------------

SOCIAL ISSUES Experts warn against growing number of child beggars Sunday, 18 October 2009 17:18

TIME TURK ------------------------------------------ More children are pushed onto the streets every passing year to earn money through begging, which experts define as a form of exploitation and even abuse. They warn charitable donors not to give money to child beggars, as such benevolent aid motivates ill-intentioned people to force more children into begging. “Donors should not give anything to child beggars -- neither money nor something to eat because it urges those who use children as a means of making a living to send more children onto the streets. It urges them to believe that children are an easy way to earn money,” said Ferhat Şahin, vice chairman of the Children of Hope Association.It urges them to believe that children are an easy way to earn money,” said Ferhat Şahin, vice chairman of the Children of Hope Association.<b0 -------------------------------------------------------------------------------------------------------------------- First Batch of Swine Flu Vaccines Brought to Turkey Monday, 19 October 2009 USAD PUBLICATIONS -------------------------------------------- The first batch of swine flu vaccines reached Turkey on Sunday. Health Ministry officials said that the first batch of vaccines including 500,000 doses were brought in Istanbul. They added that the vaccines, which were ordered from Novartis company, were sent from Italy. The vaccines are expected to be brought to Ankara early on Monday. Officials said that the vaccines would be tested in Refik Saydam Hifzisihha Center for 5 up to 20 days, and then they would be distributed to health institutions if they were decided to be applicable. Health Ministry stated that firstly, health personnel would be vaccinated. The number of people, who have been infected with H1N1 virus in Turkey so far, is 551. The number of cases in capital Ankara reached 41 in the last five days. ------------------------------------------------------------------------------------------------------------- Two Schools Recess in DIyarbakir Due to Swine Flu Monday, 19 October 2009 USAD PUBLICATIONS


--------------------------------------- Two schools were closed in the southeastern province of Diyarbakir after swine flu cases were detected on Sunday. Health Ministry stated that seven people including six students were tested swine flu positive in two schools in Diyarbakir, and classes were suspended in those schools for five days. The ministry added that the number of people, who had been diagnosed with H1N1 virus in Turkey so far, was 551. It said that the number of cases in capital Ankara reached 41 in the last five days. Meanwhile, one person was tested positive for swine flu in the eastern province of Erzurum. Officials said that 35-year-old patient was infected with the virus in the Czech Republic. ------------------------------------------------------------------------------------------------------------------- Turkey reports seven swine flu cases in four Diyarbakir schools Monday, 19 October 2009 13:49 TIME TURK ---------------------------------------------- Four schools where five students were tested swine flu positive were closed for five days as of October 19. Seven people were diagnosed with swine flu in four schools in the southeastern province of Diyarbakir, the governor's office said on Monday. A statement by the office said seven people including five students were diagnosed with swine flu in the province. Four schools where five students were tested swine flu positive were closed for five days as of October 19. Health Ministry said that the number of people, who had been diagnosed with H1N1 virus in Turkey sofar, was 551. It said that the number of cases in capital Ankara reached 41 in the last five days. ----------------------------------------------------------------------------------------------------------------------------------------------- Two Schools Recess In Diyarbakir Due To Swine Flu Monday, 19 October 2009 10:04

TIME TURK ---------------------------------------------- Two schools were closed in the southeastern province of Diyarbakir after swine flu cases were detected on Sunday. Health Ministry stated that seven people including six students were tested swine flu positive in two schools in Diyarbakir, and classes were suspended in those schools for five days. The ministry added that the number of people, who had been diagnosed with H1N1 virus in Turkey so far, was 551. It said that the number of cases in capital Ankara reached 41 in the last five days. Meanwhile, one person was tested positive for swine flu in the eastern province of Erzurum. Officials said that 35-year-old patient was infected with the virus in the Czech Republic.


------------------------------------------------------------------------------------------------------------------ Swine flu vaccination under way

Wednesday, 21 October 2009 12:02 BBC -------------------------------------------------------- The first vaccinations in the UK-wide programme aimed at combating the spread of swine flu are to take place later.

Seriously ill hospital patients and the health staff caring for them will be the first of 14m people in the "priority group" to be given the jab. From next week GPs will begin inviting people with health problems, damaged immune systems and pregnant women to come forward for immunisation. Medical chiefs urged everyone in the priority group to have the vaccine. The government has yet to decide whether the rest of population will be immunised, although enough doses have been ordered. So far just over 100 people with swine flu have died in the UK out of the 500,000 who have been infected.The spread of the virus peaked during the summer but in recent weeks the number of cases has started climbing again. Sir Liam Donaldson, the government's chief medical officer, said the vaccination programme was starting just in time."This is the first pandemic for which we have had vaccine to protect people. I urge everyone in the priority groups to have the vaccine," he said. He also stressed it was essential for NHS and social care staff to come forward.Uptake-up of the seasonal flu jab among such workers in England has been low traditionally - often below 20%. Sir Liam said: "It will help prevent them and their families getting the virus from patients, it will stop them passing the virus on to their patients, it will potentially protect them from mutated strains and it will reduce the disruption to NHS services caused by people being absent due to illness." His comments were echoed by Dr Peter Carter, chief executive of the Royal College of Nursing. He told BBC Radio 5 live: "It's important for them to keep well so that they are available to care for patients in the normal run of things, but if the pandemic really takes off we are going to need those nurses on the wards to help to cope with the influx of those that are seriously ill." Logistical challenge The vaccination programme represents a huge logistical challenge for the health service and is likely to take at least two months to complete.It is being run at the same time as the seasonal flu campaign and has forced many GP surgeries to take on extra staff to cope with the workload. But Professor Steve Field, president of the Royal College of GPs, said despite the scale of the programme, doctors were ready to immunise the priority groups. "We have been planning for this for a while and everything is in place. We will be contacting patients in the coming weeks and they should wait for that."There are two


vaccines which will be used - one manufactured by GlaxoSmithKline and the other by Baxter. THE GSK one will be offered to most patients, while the Baxter vaccine is being generally reserved for people with egg allergies as the GSK jab was made using chicken eggs.Most patients will require only one dose of the vaccine, although children and those receiving the Baxter version will need two doses, three weeks apart.Under the system drawn up for GPs by the government, the priority groups have been ordered into four groups.The under-65s with health problems and damaged immune systems, such as chemotherapy patients, will get the vaccine first. They will be followed by pregnant women, then people who live with individuals who have compromised immune systems and, finally, those over 65 with health problems. ---------------------------------------------------------------------------------------------------------------- Academic warns against bird extinction rates in Turkey Friday, 23 October 2009 10:30 Hürriyet ------------------------------------------------ A senior Turkish academic from Aegean University has warned that flamingos and Dalmatian pelicans face a risk of extinction in the bird national park in the western city of İzmir because of inadequate preservation measures. “The flamingos are becoming extinct in this national park that has harbored 245 species of birds and where 68 species of birds have incubated,” said Professor Mehmet Sıkı, of the biology department within the Faculty of Science. Sıkı said reproduction islands have been eroding every year because of destruction by waves in the Izmir bird paradise, which is the second station for the birds' reproduction. “An island where flamingos used to reproduce two decades ago has disappeared today,” he said. Sıkı drew attention to constant reductions in the number of flamingos’ nests at the bird paradise. “This year, a mid-island is housing 2,340 flamingo nests whereas it harbored 2,945 nests in 2008. So, there is a 20 percent reduction in the number of flamingo nests in the two consecutive years,” he said. “If this destruction continues as badly as it is now, no flamingo couple will incubate in the bird paradise after five years,” he said. Sıkı also said homeless dogs are threatening the reproduction of Dalmatian pelicans and flamingos in the national park. “Homeless dogs have damaged colonial reproduction because they can swim out to incubation islands better than foxes can. They have adversely affected the incubation efforts of these birds because they have eaten baby birds and eggs,” he said. Sıkı called for an immediate solution to secure the flamingos’ reproduction. “Izmir Mayor Aziz Kocaoğlu, who is also the chairman of the Bird Paradise Conversation and Development Union, held joint meetings with bird experts and scientists seeking a solution to prevent extinction. A report was submitted to build a 6,000-square-meter island to secure the reproduction efforts of 18,000 to 24,000 flamingos but there has been no progress in this initiative, Sıkı said. -----------------------------------------------------------------------------------------------------

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