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Tuesday, January 12, 2010

THE KOREAS: S. Korea and U.S. Dismiss N. Korea’s Peace Talks Proposal

January 13, 2010

By CHOE SANG-HUN

SEOUL, South Korea — South Korea and the United States said Tuesday that they would discuss a peace treaty with North Korea only after the North returned to six-nation disarmament talks and began dismantling its nuclear weapons program.

The two countries also rejected the North’s demand that United Nations sanctions be lifted before it returns to the talks.

“We’ re not going to pay North Korea for coming back to the six-party-process,” Philip J. Crowley, a State Department spokesman, said in Washington.

On Monday, the North Korean Foreign Ministry proposed “immediate” talks with the United States to negotiate a peace treaty that would formally end the 1950-53 Korean War, which ended in a truce, leaving the Korean Peninsula technically in a state of war.

The North said treaty talks could be held separately or be included in the six-nation talks, which include the two Koreas, the United States, China, Russia and Japan. The talks have been in limbo since last spring, when North Korea withdrew to protest sanctions that were imposed after it tested its second nuclear device and some ballistic missiles.

“We can discuss a peace treaty only after the six-party talks are reopened and there is progress in the denuclearization of North Korea,” Defense Minister Kim Tae-young of South Korea said at a news conference on Tuesday. “North Korea has a history of offering peace gestures with one hand while committing provocations with the other.”

Washington also said the North must first return to the talks and take “affirmative steps towards denuclearization.”

“Once they’re back within the process, once we have confidence that they’re meeting their obligations, then a wide range of other possible discussions open up,” Mr. Crowley said.

The stance reflects the allies’ suspicions that North Korea is trying to deflect the focus of the talks, which have so far focused on ending the North’s nuclear weapons program. North Korea says that asking it to give up its nuclear capabilities before it feels safe under a formal peace treaty is “like a gangster trying to disarm us at gunpoint.”

View Article in The New York Times

Next Cruise: China & Japan Explorer on the Ocean Princess in February and March

I’m looking forward to another Princess cruise next month as guest lecturer to speak about the history and culture of the areas we visit.

This time I will be sailing for about a month on the newly renovatedOcean Princess”.  The “China and Japan Explorer” route will be sailing from Shanghai to Tokyo and back again from Tokyo to Osaka.

While this will be my first voyage on the Ocean Princess, I sailed on its sister trip, the Royal Princess, about a year ago and had a wonderful experience.  I really enjoyed the “small ship” experience.

The 9 Ports of Call are as follows:

Map picture

My complete itinerary is as follows:

Date

Day

Arrival

Departure

Thursday, 2/18     from LA
Friday, 2/19   in Shanghai  
Saturday, 2/20 1   from Shanghai @ 8:00 PM
Sunday, 2/21 2 @ Sea Lecturing
Monday, 2/22 3 in Dalian
@ 8:00 AM
from Dalian
@ 4:00 PM
Tuesday, 2/23 4 in Xingang
@ 7:00 AM
from Xingang
@ 7:00 PM
Wednesday, 2/24 5 Lecturing @ Sea
Thursday, 2/25 6 in Incheon
@ 7:00 AM
from Incheon
@ 6:00 PM
Friday, 2/26 7 @ Sea Lecturing
Saturday, 2/27 8 @ Sea Lecturing
Sunday, 2/28 9 in Vladivostok
@ 5: 30 AM
from Vladivostok
@ 7:30 PM
Monday, 3/1 10 @ Sea Lecturing
Tuesday, 3/2 11 in Fukuoka
@ 8:00 AM
from Fukuoka
@ 5:00 PM
Wednesday, 3/3 12 in Hiroshima
@ 8:00 AM
from Hiroshima
@ 5:00 PM
Thursday, 3/4 13 in Osaka
@ 8:00 AM
from Osaka
@ 8:00 PM
Friday, 3/5 14 @ Sea Lecturing
Saturday, 3/6 15
& 1
in Tokyo
@ 8:00 Am
from Tokyo
@ 10:00 PM
Sunday, 3/7 2 @ Sea Lecturing
Monday, 3/8 3 in Osaka
@ 8:00 AM
from Osaka
@ 8:00 PM
Tuesday, 3/9 4 in Hiroshima
@ 9:00 AM
from Hiroshima
@ 6:00 PM
Wednesday, 3/10 5 in Fukuoka
@ 8:00 AM
in Fukuoka
@ 5:00 PM
Thursday, 3/11 6 @ Sea Lecturing
Friday, 3/12 7 in Vladivostok
@ 5:30 AM
fro Vladivostok
@ 7:30 PM
Saturday, 3/13 8 @ Sea Lecturing
Sunday, 3/14 9 @ Sea Lecturing
Monday, 3/15 10 in Incheon
@ 7:00 AM
from Incheon
@ 6:00 PM
Tuesday, 3/16 11 @ Sea Lecturing
Wednesday, 3/17 12 in Xingang
@ 7:00 AM
from Xingang
@ 7:00 PM
Thursday, 3/18 13 in Dalian
@ 11 AM
from Dalian
@ 7 PM
Friday, 3/19 14 @ Sea Lecturing
Saturday, 3/20 15 in Shanghai
@ 7:00 AM
 
Sunday, 3/21   in LA from Shanghai

Stay tuned for more details . . .

CHINA: E-Mail Breach Has Google Threatening to Leave China

January 12, 2010

By THE ASSOCIATED PRESS
Filed at 7:06 p.m. ET

SAN FRANCISCO (AP) -- Google Inc. said Tuesday it might end its operations in China after it discovered that the e-mail accounts of human rights activists had been breached.

The company disclosed in a blog post that it had detected a ''highly sophisticated and targeted attack on our corporate infrastructure originating from China.'' Further investigation revealed that ''a primary goal of the attackers was accessing the Gmail accounts of Chinese human rights activists,'' Google said in the post written by Chief Legal Officer David Drummond.

Google did not specifically accuse the Chinese government. But the company added that it is ''no longer willing to continue censoring our results'' on its Chinese search engine, as the government requires. Google says the decision could force it to shut down its Chinese site and its offices in the country.

It's unclear how much of a blow to its business Google would suffer by pulling out of China. The country has the world's largest population of Internet users but research firm Analysys International said last year that Baidu.com handled 62 percent of Web searches in China compared with 29 percent for Google.

Clothilde Le Coz, Washington director for Reporters Without Borders, called Google's willingness to stop censoring results a positive step, but added it doesn't necessarily mean more information will be available to the average Chinese person.

''The Chinese government is one of the most efficient in terms of censoring the Web,'' she said. The media watchdog group has long criticized Google and other Internet companies for caving to China's censorship regime.

Google first agreed to censor search results in China in 2006 when it created a version of its search engine bearing China's Web suffix, ''.cn.'' Previously, Chinese-language results had been available through the company's main Google.com site.

To obtain its Chinese license, Google agreed to omit Web content that the country's government found objectionable. At the time Google executives said they struggled with how to reconcile the censorship concessions with the company's motto of ''don't be evil.'' By then Yahoo had come under fire for giving the Chinese government account information of a Chinese journalist who was later convicted for violating state secrecy laws.

AP Technology Writer Barbara Ortutay in New York contributed to this story.

On the Net:

Google post: http://bit.ly/6vGb9S

JAPAN: 'Torino,' 'Dear Doctor' win awards


dear doctor poster

Wednesday, Jan. 13, 2010

Kyodo News

The Japanese film "Dear Doctor" and the U.S. film "Gran Torino" were chosen as the best films released in Japan in 2009, movie magazine publisher Kinema Junposha Co. announced Tuesday.

Clint Eastwood's "Gran Torino" was the top foreign film.

"Dear Doctor," directed by Miwa Nishikawa, topped the list for Japanese films. Nishikawa also won for best screenplay while the main actor, Shofukutei Tsurube, was named best male actor.

Click Here to View Trailer in Japanese

JAPAN: Follow the rules when feeding deer in Nara Park

Just a reminder to all of you out there who are thinking of visiting Nara sometime soon: don’t feed human food to the deer. The deer who live in Nara Park are meant to eat the specially-produced deer crackers sold at the park, yet some jerks think the deer should enjoy other kinds of food. This makes the deer associate plastic bags with food, so they eat such plastic and become sick. The video report below from TBS shows how plastic was found in the stomach of a deer that recently died at the park:

CHINA: China set for world consumer crown

Created: 2010-1-13 2:02:39

Author:Wang Yanlin

CHINA has been forecast to become the world's largest consumer market by 2020, driven by people's rising income and less savings.

China's household income of the bottom 20 percent of earners rose by 50 percent last year from 2004, while the top 10 percent surged 255 percent to about 34,000 yuan (US$4,978) per month, Credit Suisse found in its proprietary China Consumer Survey released yesterday.

The savings rate has dropped from 26 percent to 12 percent during the same period.

Based on this trend, Credit Suisse expects China's consumer spending will climb and its share of global consumption will increase from5.2 percent at US$1.72 trillion in 2009 to 23.1 percent at US$15.94 trillion in 2020, overtaking the United States as the world's largest consumer market.

The company interviewed 2,700 respondents in eight major cities between October and November last year for the latest survey.

Vincent Chan, head of China Equity Research at Credit Suisse, said the declining share of household savings, particularly from 2008 onward, could be a natural tendency that came with higher income.

"At present, the reduced savings are spent mainly on housing, including mortgages and rental payments - a reflection of the desire among Chinese to improve living conditions and showing the burden of rising property prices," Chan said.

People would probably spend more on property ownership and tend to buy more big-ticket items such as cars, LCD television sets and personal computers, Chan said.

He said a major concern over long-term consumer market development was the clamp on wage increase because of a labor oversupply.

Foreign brands still had advantages in luxury goods and high-tech products, while consumer confidence in domestic brands was generally rising, the survey found.

Chinese companies had a much stronger position in the consumer-service sector, such as telecoms, Internet and travel, it found.

China has tried to adjust its export-driven economy to rely more on domestic demand and this process has accelerated since the outbreak of the global financial crisis.

In 2008, during the crisis, China started to provide subsidies for rural buyers of big-ticket items such as TV sets, air-conditioners, washing machines and refrigerators.

The program expanded to cities and covered more products, including computers and mobile phones.

It boosted China's retail sales to 11.2 trillion yuan (US$1.64 trillion) in the first 11 months of last year, up 15.3 percent on an annual basis.

China also lowered the sales tax on small-engine vehicles last year.

The move triggered a surge in car sales, enabling China to eclipse the US as the world's largest auto market.

China will continue various stimulus measures to further boost domestic demand this year.

Copyright © 2001-2009 Shanghai Daily Publishing House

JAPAN: Port Cities Yokohama, Fukuoka & Kagoshima Considered Top Places to Live in Japan

January 11th, 2010

by Curzon

A post on the worst cities to travel to at ComingAnarchy developed into a comment discussion on the worst and best cities, with many regular MF commenters quickly joining the thread and turning the topic into a list of best and worst places to live or visit in Japan. Which gave me an idea—for those of you who live in Japan, or who are familiar with Japan, where would you want to live, and why?

This post covers my top ten, but I must preface this with an important disclaimer—my life in Japan will always be centered in Tokyo, for family, professional, and personal reasons. But I have long fantasized about acquiring a secondary residence outside the capital, for use as a vacation retreat, a place to escape from the city, or to settle for retirement. This list is covering top ten candidates for that second residence.

Biei, together with its more popular neighbor Furano, has some of the most beautiful scenery I have ever seen in Japan. Situated in the center of Hokkaido and closer to Asahikawa airport than Asahikawa city itself and thus a rural area that is very convenient to the rest of Japan, it is a popular place for Tokyoites to escape the city in the summer and has gorgeous, rolling hills covered in fields and farms. It would be a great place to launch into my favorite pasttime, cycling around Japan. Land is also relatively cheap—you can get a house with a backyard for the same price as a tiny apartment in Tokyo. The one disadvantage would be poor access to fresh seafood.

Kagoshima is a fun place for me because of its pride in its local history and easy boat access to the Okinawan islands. And I have never seen a town in Japan promote its own history so well, with biographies of famous Meiji military, political and business figures peppered over the city marking the places where they were born. Add to that the fun gardens, quaint trollycar, and Sakurajima just across the bay, and it really is a beautiful city with personality.

Tsushima is a beautiful island with countless hills and inlet bays situated between Kyushu and Korea. It has a tiny population of less than 40,000 people, and land in Tsushima can be had for a real bargain, and for a brief moment, I thought of buying some when I was there in 2007—but unfortunately, the airport no longer has direct flights to Tokyo, only Nagasaki and Fukuoka (and Korea).

A number of places along the Izu peninsula, or even out in the Izu islands, would be a wonderful place to be, with beautiful beaches in summer and very mild winters, delicious fresh food from the sea, and convenience to Tokyo that would make it almost possible to commute.

Kawagoe has always struck me as perhaps the nicest old neighborhood in the greater Tokyo area, with its clock tower and many old temples (some people complain that the buildings are not genuine, but that doesn’t bother me—even if it’s not genuine, it’s authentic, and it’s the effort and thought that counts). It is also a cheap train ticket away to Tokyo, just an hour away on the Seibu Shinjuku line. Kawagoe would be a great place to live if you were working in Tokyo but wanted to hold on to a town with history and personality.

Rebun is the northernmost island of Japan after Hokkaido, and sits a short ferry ride away from Wakkanai. This remote island truly feels like the most remote area of Japan, when you cross the stubby mountains to its west side and look down over dramatic cliffs that drop into the sea, tiny huts in a small village, and water empty of any ships except the occasional fishing boat.

Karuizawa is a hoity-toity mountain retreat for Japan’s old school elite, and one of the few places outside Tokyo where land prices are absurdly high. But it is truly beautiful in the winter

Practically part of the capital, Yokohama is one of those places that makes me reevaluate my life in Tokyo everytime I visit. It has a feel of being much more modern (read: futuristic) and clean, consumer good prices feel much cheaper, and land prices and housing prices give you much more bang for your buck than Tokyo.

Wakayama holds a certain special place in my heart because it was the first place I lived in Japan as a teenager. I have lots of friends there, and land prices keep on getting cheaper, although the economy is notably awful.

Fukuoka boasts the most convenient airport in the world, right in the heart of the city, great food, fun history and things to see, and is the one place on this list next to Yokohama that just could be a permanent home outside of Tokyo for an eager professional doing business with the rest of Asia. And it also boasts great cuisine—first class seafood, nabe, ramen, and much more.

This list is long, but how about you, readers?

JAPAN: Registration of child under sex-change father to be reviewed

TOKYO, Jan. 12 (AP) - (Kyodo)

Justice Minister Keiko Chiba showed her willingness Tuesday to review the handling of a municipal government request that a man who had legally changed his sexual status due to sexual identity disorder register his son, who was born by artificial insemination, as an illegitimate child.
"There are points which should be improved," Chiba said. "I'm willing to review them."

The man in Shisho, Hyogo Prefecture, changed his sex under a special law concerning people with sexual identity disorder, and his wife gave birth to the boy in November through artificial insemination using semen from his brother.

The man went to register the boy the following day but was unable to do so and was later told by the municipal office to register the boy as adopted.

Children born through artificial insemination by donor are ordinarily accepted as legitimate because municipal offices do not necessarily have knowledge of the birth process.

RUSSIA: U.S.-Russia arms reduction talks to resume in January

MOSCOW, January 12 (RIA Novosti)
16:2112/01/2010

Moscow and Washington could resume talks on a new U.S.-Russian strategic arms reduction treaty by the end of January, the Russian foreign minister said on Tuesday.

The new document to replace the START 1 treaty, which expired on December 5, has not been signed yet because the sides have failed to agree on verification and control arrangements to be included in the document.

"We are expecting the talks to resume some time in the second half of January," Sergei Lavrov told reporters at a press conference in Moscow.

Lavrov insisted that an important document such as a new arms reduction treaty demands thorough development and revision, including by legal and linguistics experts, before it is submitted for signing.

Russian President Dmitry Medvedev and his U.S. counterpart Barack Obama pledged at their first meeting in April to replace the START I treaty as part of broader efforts to "reset" bilateral ties strained in recent years.

The new treaty's outline agreed by the presidents included cutting nuclear arsenals to 1,500-1,675 operational warheads and delivery vehicles to 500-1,000.

American and Russian officials have been holding intense talks since July last year with the initial aim of signing a new accord before the expiration of the START I treaty.

CHINA: Ancient map with China at the centre goes on show in the US

Published: 2010/01/12 12:09:44 GMT

A historic map of the world, with China at its centre, has gone on display at the Library of Congress in Washington.

The map was created by Italian missionary Matteo Ricci in 1602. It is one of only two copies in existence in good condition.

Because of its rarity and fragility - the map is printed on rice paper - the map has become known as the "Impossible Black Tulip of Cartography".

This is the first time it has been on public show in north America.

Ricci created the map at the request of Emperor Wanli who wanted it to help scholars and explorers.

'Revered by Chinese'

The map was purchased by the James Ford Bell Trust in October for $1m (£0.62m), making it the second-most expensive rare map ever sold.

It denotes different parts of the world with annotations and pictures.

In the Americas, for example, several places are named including Chih-Li (Chile), Wa-ti-ma-la (Guatemala) and Ka-na-ta (Canada), and Florida is described as "the Land of the Flowers".

Ford W Bell, a trustee for the James Ford Bell Trust, told the Pittsburgh Tribune-Review newspaper, that the map was "one of the two best in terms of quality, as far as we know".

"Ricci was a very smart missionary. He put China right at the centre of this new universe, this new globe, to underscore its importance," he said.

"Ricci, of course, was the first Westerner to enter Beijing. He was revered by the Chinese, and he was buried there."


The first secretary for cultural affairs at the Chinese embassy in the US, Ti Ban Zhang, said in a statement that the map represents "the momentous first meeting of East and West".

© BBC MMX

CHINA: Making moves to curb economic boom

Published: 2010/01/12 16:46:31 GMT

China's central bank has stepped in to curb lending in its banking system.

Chinese banks must now keep more money back in reserves, the first such increase since June 2008, thereby taking cash out of the economy.


Chinese Premier Wen Jiabao recently urged banks to curb lending, saying they needed to be "more balanced".

China is concerned about inflation and potential asset bubbles - in stocks and property - forming in its booming economy.

The People's Bank of China also raised the interest rate on its one-year Treasury bills, another move designed to remove money from the system.


The central bank has issued a series of calls recently to banks to moderate their lending.

Monetary policy

"It would be good if our bank lending was more balanced, better structured and not on such a large scale," Mr Wen said recently, according to the Xinhua news agency.

The new moves came a day after state media reported that the banks had extended 600bn yuan ($88bn, £54bn) in loans in the first week of January.

China had employed what it called a "moderately loose" monetary policy over the past year to keep the economy growing amid the global downturn.

Economic growth is not the worry for China that it is for many other parts of the world, particularly developed nations.

The country has announced it is targeting economic growth of 8% this year.

© BBC MMX

JAPAN: Investors Sell as JAL Tries to Decide Its Next Step

January 13, 2010

By HIROKO TABUCHI

TOKYO — Investors rushed to sell their shares in Japan Airlines on Tuesday ahead of a bankruptcy filing that could come as early as next week. At the same time, two rival airlines, American and Delta, battled for a stake in JAL, which could still be a strong regional player once restructuring takes place.

American Airlines said Tuesday it had raised its offer of an investment in JAL by $300 million, to $1.4 billion. American, which is making the bid jointly with the private equity firm TPG, also guaranteed a $100 million annual increase in sales for JAL if it stayed with the American-led Oneworld alliance.

Still, shares in JAL, which has $16 billion in liabilities, fell 45 percent on Tuesday to a record low of 37 yen in Tokyo as a bankruptcy filing appeared inevitable.


The sell-off came after Prime Minister Yukio Hatoyama suggested that shareholders of JAL — the recipient of a string of government bailouts — would not be protected in the restructuring process, which would be orchestrated by a state-backed corporate turnaround agency.

The transport minister, Seiji Maehara, confirmed Tuesday that shareholders were at risk
, adding that JAL’s main creditor banks supported the government’s plans for a court-led restructuring.

“I think shareholders should also bear responsibility,” Mr. Hatoyama told reporters.

Despite its expected bankruptcy filing, American and Delta are locked in battle over a stake in the Japanese carrier.

The two airlines hope to tap JAL’s routes to the fast-growing Asian market once the carrier is restructured, and strengthen their foothold in Japan. A recent “open skies” agreement between the United States and Japan had led to tie-ups between airlines of the two countries.

Delta is offering JAL $500 million in equity, as well as a substantial increase in passengers and revenue from its SkyTeam alliance.

A state-backed body tasked with JAL’s restructuring could reject both investments, however, and rely instead on a public injection of funds, Japanese news agencies have said. The agency believes that an outside investment will only complicate the restructuring process, according to news reports.

Meanwhile, the Japanese airline appeared to clear a major hurdle to receiving more public money after it said Tuesday that it had persuaded retirees to accept a 30 percent cut in their pensions. The government had demanded that JAL slash its pension payouts in return for an additional 300 billion yen.

The finance minister, Naoto Kan, told reporters that the government would consider increasing its assistance to JAL.

“The government has already expressed support to JAL, but I wonder whether that’s enough,” Mr. Kan said. “If we need to express further support, we will take action as needed.”

The chief financial officer of American Airlines, Thomas W. Horton, urged the Japanese to allow further investment from a commercial partner, saying that it would be to JAL’s advantage.

“While JAL and the Japanese government might decide to address capital requirements internally, and we certainly would understand and respect that, our offer of capital would also be available if this was deemed appropriate,” Mr. Horton said.

“It brings stability and certainty to Japan Airlines at a time when most needed, as it faces turbulent times over the coming weeks and months,” he said.

Mr. Horton made his case alongside other members of the Oneworld alliance, including British Airways, Qantas and Cathay Pacific.

British Airways offered an additional $200 million in revenue to JAL over three years through an expanded code-sharing agreement, while Qantas said it would advise JAL on setting up a low-cost carrier business.

The extent of JAL’s woes have come as a shock to many Japanese.

Initially state-owned, the airline’s rapid growth in the 1960s and ’70s mirrored that of the Japanese economy. The airline was privatized in 1987.

But intense price competition and ill-timed investments, along with soaring personnel and pensions costs, have weighed heavily on JAL. The airline has also suffered from a drop in travel amid the global economic crisis and swine flu epidemic. It lost about $1.5 billion in the six months through September.

The carrier will shed 13,000 jobs — almost a quarter of its work force — through early retirement programs and by spinning off units, according to the Nikkei business daily. The airline’s chief executive, Haruka Nishimatsu, is expected to step down.


Mr. Hatoyama, whose Democratic Party swept to power in September on promises of bold changes to Japan, has said the government is committed to keeping JAL flying throughout the restructuring.

“We are united in our efforts to guarantee JAL’s operations, and that the company’s future revival,” Mr. Hatoyama told reporters. “That is most important.”

Copyright 2010 The New York Times Company

THE KOREAS: S. Korea and U.S. Dismiss N. Korea’s Peace Talks Proposal

January 13, 2010

By CHOE SANG-HUN

SEOUL, South Korea — South Korea and the United States said Tuesday that they would discuss a peace treaty with North Korea only after the North returned to six-nation disarmament talks and began dismantling its nuclear weapons program.

Seoul and Washington also rejected the North’s demand that United Nations sanctions be lifted before it returns to the talks.


“We’re not going to pay North Korea for coming back to the six-party-process,” P. J. Crowley, a State Department spokesman, said in Washington.

On Monday, the North Korean Foreign Ministry proposed “immediate” talks with the United States to negotiate a peace treaty that would formally end the 1950-3 Korean War, which ended in a truce, leaving the Korean Peninsula technically in a state of war.

The North said treaty talks could be held separately or be included in the six-nation talks, which include the two Koreas, the United States, China, Russia and Japan. The talks have been in limbo since last spring, when North Korea withdrew to protest sanctions that were imposed after it tested its second nuclear device and some ballistic missiles.


“We can discuss a peace treaty only after the six-party talks are reopened and there is progress in the denuclearization of North Korea,” Defense Minister Kim Tae-young of South Korea said at a news conference Tuesday. “North Korea has a history of offering peace gestures with one hand while committing provocations with the other.”

Washington also said the North must first return to the talks and take “affirmative steps towards denuclearization.”

“Once they’re back within the process, once we have confidence that they’re meeting their obligations, then a wide range of other possible discussions open up,” Mr. Crowley said.

The stance reflects the allies’ suspicions that North Korea is trying to deflect the focus of the talks, which have so far focused on ending the North’s nuclear weapons program. North Korea says that asking it to give up its nuclear capabilities before it feels safe under a formal peace treaty is “like a gangster trying to disarm us at gunpoint.”

Mutual mistrust has made “sequence” — the diplomatic question of who does what first — a central point of contention during years of negotiations between North Korea and the United States.

Also Tuesday, the North Korean ambassador to China, Choe Jin-su, called together a small group of reporters to reiterate Pyongyang’s latest statement.

Mr. Choe said the signing of a peace treaty would help promote “denuclearization at a rapid tempo,” the Japanese news agency Kyodo reported. “Here I would like to stress ‘at a rapid tempo.’ ”

The Korean War began 60 years ago with a North Korean invasion of the South. The United States led United Nations forces in defense of the South and China fought for North Korea. An American general representing the U.N. Command signed a ceasefire pact with the Chinese and North Korean militaries, but South Korea did not.

The North had previously tried to keep the South out of peace talks, saying it fought the war with the Americans and not with a “South Korean puppet.”

On Tuesday, Mr. Choe, the North Korean diplomat, said he did not know whether South Korea wanted to be part of peace talks “because they didn’t even sign the truce.”

Mr. Kim, the South Korean defense minister, retorted: “Of course, South Korea should be included.”

Copyright 2010 The New York Times Company

CHINA: Defense Test Indicates China’s Displeasure With the U.S.

January 13, 2010

News Analysis
By ANDREW JACOBS

BEIJING — China said it had successfully tested the nation’s first land-based missile defense system, announcing the news late Monday in a brief dispatch by Xinhua, the official news agency. “The test is defensive in nature and is not targeted at any country,” the item said.

Even if news accounts on Tuesday did not provide details about the test — and whether it destroyed its intended target — Chinese and Western analysts say there is no mistaking that the timing of the test, coming amid Beijing’s fury over American arms sales to Taiwan, was largely aimed at the White House.

In recent days, state media outlets have been producing a torrent of articles condemning the sale of Patriot air defense equipment to Taiwan. China views the self-ruled island as a breakaway province, separated since the civil war of the 1940s, and sees arms sales as interference in an internal matter.

The Defense and Foreign Ministries have released a half-dozen warnings over the weapons deal, saying it would have grave consequences for United States-China relations. The state-run Global Times newspaper urged readers to come up with ways to retaliate against the United States.

Writing in the Study Times newspaper, Maj. Gen. Jun Yinan said that China had the power to strike back. “We must take countermeasures to make the other side pay a corresponding price and suffering corresponding punishment,” wrote General Jun, a professor at China’s National Defense University.

Although most analysts doubt the Chinese will seek to punish the United States in a significant way — retaliatory measures over past arms sales have included the suspension of military talks — the especially vociferous response may herald rockier relations between the countries as they confront differences over monetary policy, trade issues, Iran and North Korea.

“For the Chinese, selling arms to Taiwan feels like a slap in the face,” said Shi Yinhong, a professor of United States-Chinese relations at People’s University in Beijing. “I think the government expected something different from Obama, especially so soon after his visit to China.”

The White House said it was simply fulfilling a deal that was negotiated during the Bush administration. It also pointed out that the sale, approved by the Pentagon last week, omits F-16 fighter jets and Black Hawk helicopters, a concession to Beijing.

Secretary of State Hillary Rodham Clinton, speaking in California on Monday, said she thought the strain in relations would be brief and mild. “It doesn’t go off the rails when we have differences of opinions,” she said of the relationship with China.

Relations may get bumpier in the coming weeks when President Obama meets with the Dalai Lama, the Tibetan spiritual leader whom China accuses of being a separatist, and President Ma Ying-jeou of Taiwan makes a brief visit to the United States. Overseas visits by Taiwanese officials invariably irk Beijing.

Arthur Ding, a research fellow at the Institute of International Relations in Taipei, the Taiwanese capital, said China may have thought its growing economic might and the improving cross-strait relations fostered by President Ma during his 20 months in office might have persuaded the United States to put off any weapons deal.

“Perhaps Beijing has unrealistic expectations,” he said. “I think they imagined their influence is greater than it is.”

For all the saber-rattling over the arms sale, some analysts say the official invective and anti-missile demonstration may have been largely aimed at domestic audiences, who increasingly expect their leaders to stand up to the West.

Zhu Feng, deputy director of the Center for Strategic and International Studies at Peking University, described China’s missile defense system as experimental and “not really meaningful” and said the test’s real purpose was an opportunity for the People’s Liberation Army to strut.

Despite China’s newfound confidence, he said the government is increasingly frustrated by its inability to influence the United States on an issue that has bedeviled Beijing for decades.

“China still lacks the leverage to force the White House to stop these sales,” he said. “So they feel like they must make a lot of noise.”

Jonathan Ansfield contributed reporting, and Li Bibo contributed research.

Copyright 2010 The New York Times Company

JAPAN: Sumo Veteran ozeki Kaio makes sumo history at New Year basho

Jan 12 05:29 AM US/Eastern

TOKYO, Jan. 12 (AP) - (Kyodo)

Kaio etched his name in the sumo record books at the New Year Grand Sumo Tournament on Tuesday as the veteran ozeki claimed his 808th win in sumo's elite makuuchi division to take top spot on the all-time list.

The 37-year-old Kaio, who matched former yokozuna great Chiyonofuji's record of 807 victories on Monday, reached the milestone by overpowering Chiyotaikai, pushing the former ozeki a step closer to retirement in the process.

The Tomozuna stable warhorse shrugged off a slap at the charge and got around the back of Chiyotaikai to floor him with an "okurinage" rear throw down.

Kaio, the oldest wrestler in sumo's premier league, improved to 2-1 while Chiyotaikai dropped to 0-3 at the 15-day meet at Ryogoku Kokugikan.

The five-time Emperor's Cup winner, who made his debut alongside the likes of former yokozuna Takanohana and Akebono at the spring tourney in 1988, has a career total of 976 wins, second on the all-time list behind Chiyonofuji (1,045).

Chiyonofuji hailed Kaio's achievement after seeing his makuuchi record broken.

"Records are there to be broken and when a wrestler comes out and does that it livens sumo up," Chiyonofuji told NHK. "He wrestled well as well. His body is not as packed with energy as it once was but he has made a massive effort and it is a splendid achievement."

Chiyotaikai has been demoted to sekiwake here after competing in 65 tournaments as an ozeki. The 33-year-old has said he will retire if he fails to get the 10 wins he needs for promotion back to ozeki for the next tournament.

Meanwhile, tournament favorite Hakuho and fellow Mongolian yokozuna Asashoryu both maintained their unbeaten records with comfortable wins.

Looking to improve on an 11-4 showing in Kyushu in November, Asashoryu outmuscled winless Georgian No. 1 maegashira Tochinoshin and Hakuho flexed his muscles to reel in top-ranked Toyonoshima and floor him with an "amiuchi" fisherman's throw to extend his unbeaten streak stretching back to the autumn meet to 27 bouts.

Elsewhere, in the upper ranks, Bulgarian pin-up Kotooshu showed nifty footwork to tip over second-ranked Goeido (1-2) for a third win while Harumafuji made short work of Miyabiyama (1-2) to keep his slate clean, the ozeki weathering a pair of neck thrusts and bumping the No. 2 maegashira over the straw ridge.

But there was more grief for ozeki Kotomitsuki, who was second best in every department against Hokutoriki and was bundled out to a third consecutive defeat. Third-ranked Hokutoriki improved to 2-1.

Estonian sekiwake Baruto (2-1) moved back into the winning column with a routine force-out victory over Mongolian komusubi Kakuryu, who dropped to 1-2.

TRAVEL: Delta & Continental Increase Checked Bag Fees

STORY HIGHLIGHTS
* Online charges for checked bags will be $23 for the first bag, $32 for the second
* That's an $8 and $7 increase from current rates, respectively
* Checking in bags at airport will be even more: $25 for first bag, $35 for second
* New Delta rates start Tuesday; Continental rates are for travel on or after January 16

(CNN) -- Continental Airlines has matched Delta Air Lines' recent checked-luggage fee increase, a Continental spokeswoman says.

Delta Air Lines passengers paying online for checked bags will be charged $23 for the first bag and $32 for the second -- an $8 and $7 increase from current rates, respectively.

The new Delta rates start Tuesday and apply to tickets purchased on or after January 5. Passengers who bought tickets before that date will pay the old rates, Delta spokeswoman Susan Elliott said.

Continental Airlines matched the increase late last week, spokeswoman Mary Clark said. The increase on Continental applies to passengers who purchased tickets on or after January 9 for travel on or after January 16.

Those checking in bags at the airport will shell out even more: $25 for the first bag, $35 for the second on both airlines.

Some passengers -- such as first-class fliers, some frequent fliers and military personnel on deployment -- are exempt from most checked-luggage fees.

Delta and Continental luggage fees now are among the highest in the industry. US Airways also charges $25 for the first checked bag and $35 for the second bag when checked in at the airport. Online, the airline charges $20 and $30 for the first and second bags.

United Airlines charges $20 for the first checked bag and $30 for the second bag at the airport, and $15 and $25 online for the first and second bags, respectively. American Airlines charges $20 for the first checked bag and $30 for the second bag, both online and at the airport.

Most major air carriers started adding checked-bag fees in 2008.

On discount carrier Southwest Airlines, the first and second checked bags are free. JetBlue offers a free first checked bag and charges $30 for the second.

© 2008 Cable News Network

Monday, January 11, 2010

N. KOREA: North Korea Calls for Peace Treaty Talks With U.S.

January 12, 2010

By CHOE SANG-HUN

SEOUL, South Korea — North Korea on Monday proposed talks with the United States to reach a formal peace treaty that would replace the truce that halted the Korean War 57 years ago, indicating that it would not give up its nuclear weapons until Washington signed such an accord.

North Korea said peace talks should be held either as part of the six-nation talks that focus on ending its nuclear weapons program or as a separate negotiation. But the North also warned that it would not return to six-nation talks — from which it withdrew last April — unless the United Nations lifted sanctions imposed after the North’s nuclear and ballistic missile tests last year.

The North had previously proposed peace negotiations with the United States and South Korea. But its latest overture came as it was trying to shift the focus of the six-nation talks, where a peace treaty had been set aside until North Korea made significant progress toward dismantling its nuclear weapons program.

“If a peace treaty is signed, it will help resolve hostile relations between North Korea and the United States and speed up the denuclearization of the Korean Peninsula,” the North Korean Foreign Ministry said in a statement carried by the North’s state-run news agency, K.C.N.A.

After years of unsuccessful talks with Washington, North Korea said it concluded that all agreements were bound to collapse unless the two sides built mutual “trust.” To build such confidence, the statement said, “It is essential to conclude a peace treaty for terminating the state of war, a root cause of the hostile relations.”

The statement reiterated North Korea’s contention that it would not have built nuclear weapons if the United States had assured it of peace.

Stephen W. Bosworth, President Obama’s special representative on North Korea, who visited the capital, Pyongyang, last month, said the United States could discuss a peace treaty and other incentives only when the process of denuclearizing the Korean Peninsula had gained “significant traction.”

Last week, Foreign Minister Yu Myung-hwan of South Korea denounced what he called the North’s “unrealistic” demand that the United States negotiate a peace treaty before the North considers relinquishing its nuclear weapons.

“That’s like saying it will never give up its nuclear programs, or it is a delaying tactic” to buy time to further its nuclear programs, he said.

On Monday, North Korea suggested that peace talks be held among the signatories of the Korean War armistice: the American-led United Nations Command in Seoul, China and North Korea. South Korea refused to sign the truce, but Seoul and Washington insist that any peace talks include the South.

Between 1997 and 1999, the two Koreas, the United States and China held six rounds of peace talks that produced no agreement because the North insisted on the withdrawal of American troops from South Korea and an end to joint United States-South Korean military exercises.

“With its peace proposal, North Korea is trying to gain the initiative as it prepares to return to six-nation talks,” said Kim Yong-hyun, a North Korea analyst at Dongguk University in Seoul. Mr. Kim expected some haggling between the governments in Pyongyang and Seoul over whether South Korea should be included.

Earlier Monday, Robert R. King, Mr. Obama’s envoy on North Korean human rights issues, said during a visit to Seoul that the North’s “appalling” human rights situation would impede any efforts to normalize ties.

He also called Monday for the release of Robert Park, a Korean-American missionary who crossed into North Korea last month to demand the release of an estimated 160,000 political prisoners held in labor camps, according to his supporters in Seoul.

North Korea has confirmed that it has detained an American citizen but has not identified him by name.

View Article in The New York Times

JAPAN: Japanese woman drives home with body in windscreen

(AFP) – 20 hours ago

TOKYO — A Japanese woman who drove home with the body of an 80-year-old pedestrian lodged in her windscreen has been arrested on charges of causing a deadly traffic accident and fleeing the scene, police said Monday.

The 23-year-old driver was believed to have struck the elderly woman in the early hours of Sunday north of Tokyo before driving seven kilometres (four miles) home with the victim's body wedged in the shattered windscreen.

Michiko Sato, a catering school student, was arrested after her boyfriend called police to report the accident, a police spokesman said.

When police called at Sato's home, they found the body of the elderly woman still stuck in the car's windscreen.

"The suspect said she was so shocked that she didn't know what to do," the police spokesman said. He added Sato was not under the influence of alcohol at the time of the accident.

She was charged with causing a traffic accident resulting in death and escaping after running over a person with a car and faces up to 17 years in prison or a fine of up to two million yen (22,000 dollars) if convicted.

Copyright © 2010 AFP. All rights reserved.

JAPAN: Etiquette by the numbers

The Japan Times: Tuesday, Jan. 12, 2010

JAPANESE MANNERS

Bowing, bathing, greeting, eating — all manners of established codes of conduct

By MARIKO KATO
Staff writer

Have you ever tried to shake hands with a Japanese only to be bowed at instead?

Or have you suffered disdainful looks when you blew your nose in public, or dunked your towel in a hot springs bath, unaware you are breaking social codes?

Japan's many rules of etiquette may bemuse foreign visitors, while for long-term residents mastering them is a key part of embracing the culture.

So what constitutes Japanese etiquette, and how do foreign residents and experts view such manners? Following are questions and answers:

What is included in everyday etiquette?

Posted notices and warnings against various perceived antisocial behavior are commonplace. People riding trains are advised not to take up more than one seat and are urged to refrain from talking on a cell phone or playing loud music.

Most "onsen" (hot springs baths) ban swimsuits, advise guests to rinse themselves off before entering the bath and in cases of mixed bathing not to stare or flash oneself in front of others.

But many basic social codes provide no posted directions, requiring foreigners to learn by observation and that old standby, trial and error.

The handling of chopsticks can be a minefield of faux pas.

A guide put out by JAL Academy, a firm created by Japan Airlines to coach businesses on etiquette, directs users to first "hold the chopsticks horizontally and pull the chopsticks apart slowly, over your knees."

The book "Japanese Manners Read in English" advises never to use a chopstick to impale a food item, pass it from chopsticks to chopsticks or stick chopsticks into food in a bowl so the ends are pointing up. The latter is associated with the dead and food for the final journey.

Licking one's chopsticks is also taboo, as is waving them over food while deciding what to eat, or around while talking, the guide says.

Bowing is also a key practice, and the degree of bending depends on the occasion.

According to JAL Academy, a 45-degree bow is customary when meeting someone deemed to be superior, or to show gratitude or to apologize. A 30-degree bow is appropriate for greeting visitors or first-time acquaintances, while a 15-degree dip will suffice for a casual hello in the hallway, the book says.

Other advice found in the guide includes keeping conversations short during initial greetings and, when visiting someone's home, refraining from poking around in cupboards, bookcases and other personal areas — the latter taboos not being so uniquely Japanese.

What constitutes formal etiquette?

In addition to social codes of behavior for formal dinners and religious ceremonies, there is the practice by adults of gift-giving, which many in Japan actually consider a headache. Gourmet food, sweets or alcohol may be given to relatives and colleagues at the turning of seasons and on special occasions. There are informal guidelines on how much money to spend on initial offerings based on the importance of the recipient, and then on return gifts.

Gift-giving is not always simply a gesture of gratitude or thoughtfulness, as it can have parallels with bribery, according to Katherine Rupp, a lecturer in anthropology at Yale University.

"Not only do individual Japanese people spend a lot of time, worry and money on gift-giving, but gift-giving is also a crucial part of the overall workings of the macro-economy," she writes in "Gift-giving in Japan."

Rupp points to the subtle undertones that personal gifts to bosses or doctors, or presents given by industries to bureaucrats or politicians, may have in persuading the recipient to act to the giver's advantage.

How would social codes be characterized?

Like other countries, Japan's social codes "lie somewhere between conscience or self-expression and the law," according to Isao Kumakura, a professor emeritus at the research institute of the National Museum of Ethnology in Osaka.

"Even if you are alone, there is a feeling that somewhere someone might be watching," and this feeling is particularly strong in Japanese, he writes in "Manners as Culture" ("Bunka to Shite no Manaa").

According to Kumakura, Japanese etiquette has roots in the rituals of tea ceremony and martial and creative arts, although such customs were exclusive to the upper class until Japan opened its doors to the West in the mid-19th century.

To appear sophisticated in Western eyes, commercial centers like Tokyo, Yokohama and Osaka established regional laws that imposed codes of conduct between samurai and commoners, he writes.

These laws prevented men from urinating in public, and workers from walking naked to public baths carrying a change of clothes, a common habit as they did not want to change while they were still dirty from the day's work, Kumakura explains.

In modern times, instruction manuals on manners tend to focus on business situations rather than the home or society.

How do foreign residents and experts view Japanese manners?

Helmut Morsbach, an adjunct professor of psychology at Temple University Japan Campus and a long-term resident, writes in his book "Customs & Etiquette of Japan" that many Japanese drastically change their attitudes once they are outside their comfort zone.

Such a strict adherence to social codes may indicate that, as Morsbach says, "traditional etiquette continues to be extremely important, despite whatever outward appearances of 'Westernization' the visitor may experience."

But Ronald Dore, a professor at the London School of Economics specializing in Japanese society, stresses that foreigners should not feel compelled to master Japanese etiquette, only demonstrate an attempt at it in a relaxed, open manner.

"It is a perfectly viable strategy to profess a combination of total ignorance of Japanese manners and a total willingness to be instructed, and sometimes it can even be the best strategy," rather than becoming anxious and creating tension, he says in the foreword to Morsbach's book.

For business settings, a common scenario for foreign visitors, Morsbach's tips include don't make eye contact too strong during a conversation, don't point with a finger and don't mistake a smile camouflaging hesitation to mean an agreement.

Does everyone adhere to these codes?

No, says columnist Takashi Matsuo, who insists many Japanese find such strict rules stifling.

"Although it's a country that values manners, many Japanese themselves in fact feel a kind of stiffness, and perhaps (Morsbach) isn't aware that there are many people who want to forget such social rules and interact with people in a frank and open way," he writes in a commentary inside Morsbach's book.

But some observers see an antisocial side to this relaxed mind-set, and claim anonymity in large cities and online is making people less concerned about appearing rude.

"Modern Japan has been eliminating society from around them," Kumakura says.

"The fun of anonymity and the fear of losing manners are in conflict with each other. Now this has become a daily norm, and with the rise of the Internet, we ignore manners because of anonymity and abuse our rights."

(C) All rights reserved

To Reconcile the Koreas, Teenagers Show a Way

Ju Jin-ho (second from left) and Park Sung-eun (third from left) discussing how to make dumplings during a camp last year where North Korean defectors and teenage South Korean students cooked and compared each other’s food in a get-to-know session.  Citizens All for North Korean Human Rights

January 12, 2010

By CHOE SANG-HUN

SEOUL — When Ju Jin-ho arrived here from North Korea in 2006, it was as if he had come to an alien continent, not just the southern end of the peninsula.

Even though the 14-year-old defector was placed in a school with children a year or two younger than he, most of his classmates were a head taller. They teased him as a “red.” They were far ahead of him in subjects like mathematics. As desperate as he was to make friends, he had trouble communicating.

“During class breaks, they talked about nothing but computer games,” said Mr. Ju, now 17. “I started playing them so I could join their conversations. I became addicted. My eyesight deteriorated. My grades got worse.”

Since last summer, however, he’s been enrolled in a new program that seeks to overcome the yawning cultural gap that has developed during the six-decade divide between the Communist North and capitalist South, which have yet to sign a formal peace since the 1950-53 Korean War. It brings together teenage South Koreans and North Korean defectors in a rare experiment here in building affinity — and preparing for possible reunification.

Just how far the two sides have drifted apart, how radically different their frames of reference are, was evident when Park Sung-eun, a 16-year-old South Korean, met Mr. Ju last summer through the program in Seoul’s bustling Sinchon district.

“When I asked him, ‘How do you get here?’ I expected him to say by bus or subway,” Ms. Park said.

Instead, she recalled, “He gave me the whole story of his journey from North Korea through China and Myanmar,” when he fled with his family in 2005.

The “Weekend Program for South and North Korean Teenagers Together” was begun last August by the Rev. Benjamin H. Yoon, 80, head of the Citizens’ Alliance for North Korean Human Rights.

“Although we share the same genes, South and North Koreans live like completely different peoples, with different accents, different ways of thinking and behaving,” said Mr. Yoon. “We forgot that before Korea was divided, we lived in the same country, marrying each other.”

Under the program, the Citizens’ Alliance, a civic group founded in 1996, has brought together students from Kyunggi Girls’ High School in Seoul with young North Korean defectors for extracurricular activities.

They have attended concerts together. They have cooked and compared North and South Korean dishes. The North Koreans, adept at farm work, have shown the South Koreans how to harvest yams and make scarecrows. The Southerners have given the Northerners tips on how to succeed socially as well as academically. They have made friends.

One October evening, when the students had gone camping and stayed up late, Moon Sung-il, a 14-year-old North Korean, brought tears to the South Koreans’ eyes when he recounted his two-and-a-half-year flight with other defectors that took him through China, Myanmar and a refugee camp in Bangkok. But he stunned them when he said that none of this was as daunting as a South Korean classroom.

“I could hardly understand anything the teacher said,” he said. “My classmates, who were all a year or two younger than I was, taunted me as a ‘poor soup-eater from the North.’ I fought them with my fists.”

More than 17,000 North Koreans, one-tenth of them teenagers, have fled to the South since famine hit their homeland in the mid-1990s. The average journey to the South takes 35 months, mostly through China and Southeast Asia. Not all who start make it; some have been caught and returned to the North, where they often end up in labor camps.

When they are placed in South Korean schools, these Northerners start nearly from scratch. In the North, they had spent as much time learning about the family of their leader, Kim Jong-il, as they did the rest of Korean history. Few learned English, a requirement in South Korean schools. Dropout rates among defectors are five times the South Korean average, according to the Education Ministry.

With the number of North Korean refugees rising about 10 percent annually, how to integrate them has become an early test for possible unification.

“Whenever something bad about North Korea came up during class, everyone turned to look at me,” said Mr. Ju, who now attends an alternative school for defectors after failing to advance to a regular high school. “When teachers and students spoke disparagingly about North Korea, I felt like they were insulting me.”

Ms. Park said she used to look down on North Koreans. “I associated them with something poor, dark and negative,” she said.

Although many successful South Koreans have their roots in the North — the country’s first president, Syngman Rhee; the founder of the Hyundai business empire; the family that built the South’s influential Chosun newspaper; founders of some of the biggest Christian churches — an image has developed of Northerners as second-class Koreans, needy and starving but surly and belligerent. They have taken food aid from the South but threatened it with war, run prison camps and built nuclear weapons. They are friendly toward China but have rejected talks with the South.

The mistrust is mutual. In the North, teachers tell children that South Korea is an American colony, a springboard for a future invasion, defectors say.

“Back in the North, we seldom heard teachers talk about unification. We seldom thought about it,” said Choi Hyok-chol, a 19-year-old defector. “I still don’t think it’s possible. The two economies are much too different.”

In a survey last June of 1,000 South Koreans aged 19 to 59 conducted by the Korea Peace Institute, a Christian research institute, half the respondents said unification was not necessary as long as the two sides lived in peace. In a survey in September of 1,000 people aged 19 to 39, the National Unification Advisory Council for the South Korean president found that 67 percent wanted any unification to be gradual to avoid political and economic chaos.

Although a spirit of unification persists in the South, many people balk at what is expected to be the prohibitive cost of integrating the economies. The North’s per capita income amounts to just 6 percent of the South’s, according to the Bank of Korea.

“I used to oppose unification because I thought we’d lose more than we’d gain,” said Hur Ji-young, a freshman at Kyunggi. Her friend Lim Hyo-jeong, however, said she supported it because she saw an economic advantage in a larger domestic market.

After mingling with the North Korean teenagers for a semester, hearing about their hardships and their concerns for relatives left behind, the South Koreans said they believed more strongly in unification, but now less for economic reasons than something closer to good will.

“Before I joined this program, I considered unification with a calculator, not with my heart for fellow Koreans in the North,” Ms. Hur said.

View Article in The New York Times

RUSSIA: Ruble Jumps as Russia Returns From Holidays

January 12, 2010

By ANDREW E. KRAMER

MOSCOW — The ruble had its best day against the dollar in more than a decade on Monday when it rose 3.1 percent.

The jump was partly a result of a fluke in Russia’s trading calendar that closed the markets for 10 days, bottling up beginning-of-the-year trends unfolding elsewhere and allowing them to hit at once.

Russian markets were closed after the New Year for Eastern Orthodox Christmas. During that time, oil prices rose above $80 a barrel because of cold weather, a weakening dollar and signs of growth in China.

Thus, when markets opened, the ruble went from 30.25 rubles to the dollar at the opening to 29.25 at the close. That was the biggest jump for Russia’s currency since March 1999, when the country was pulling out of an economic crisis, according to Bloomberg News.

The Micex index of major Russian stocks, meanwhile, rose 5.5 percent. The gas giant Gazprom, a company that is sensitive to oil prices, rose 6.23 percent. Norilsk Nickel, the Siberian miner of this alloy of stainless steel, gained 10.61 percent. Rosneft, the state oil company, rose 7.80 percent. The gains were less marked in light of the unusual trading schedule. Russian global depository receipts that trade in London, where the market was open all week, had risen to 5.7 percent by Friday.

That was more than the 2.7 percent gain by the MSCI Emerging Markets Index of all emerging market stocks, suggesting pent-up interest in Russia.

“The Russian markets today were just catching up with everything that happened when they were on vacation,” Rory MacFarquhar, chief economist at Goldman Sachs in Moscow, said in a telephone interview. Still, Goldman is expecting further ruble appreciation.

The appreciating currency is an added benefit for investors in Russian stocks. The currency and equity markets then tend to spiral upward together with rising commodity prices but crash just as hard when the tide turns, as it did in 2008.

Still, even accounting for that crash, Russia’s gross domestic product grew the most of any major economy in dollar terms over the last decade, followed by Indonesia and Vietnam, according to a report released last week by Goldman Sachs.

Copyright 2010 The New York Times Company

Hatoyama to Nanjing, Hu to Hiroshima?

Very interesting food for thought on future Sino-Japan relations and the implications for the US.

-HHC


January 12, 2010

By Kosuke Takahashi

TOKYO - With the world economy's center of gravity shifting from the West to the East, led by China's rising economic and corresponding political power, the year 2010 may witness a series of epoch-making events in Asia.

A grand rapprochement between Japan and China could be one such happening, and the idea has been recently floated through the media by some anonymous diplomatic sources in Tokyo and/or Beijing, attracting a lot of attention among experts worldwide.

The French newspaper Le Figaro reported from Tokyo last Wednesday that the Chinese Communist Party (CCP) had delivered to the ruling Democratic Party of Japan (DPJ) the script of a spectacular reconciliation this year between the two countries. The report said the CCP had proposed that Japanese Prime Minister Yukio Hatoyama begin the process by going to Nanjing, where a mass killing of Chinese civilians by the Japanese Imperial Army took place in December 1937 and subsequent months.

This first visit to Nanjing by a Japanese prime minister since the war would present to the Chinese people Tokyo's official apologies without ambiguity, easing lingering anti-Japan sentiment among the Chinese public. In return, some months later, on August 15, the anniversary of the Japanese surrender in 1945, Chinese President Hu Jintao would go to Hiroshima, the first city to experience atomic bombing, and declare the three non-nuclear principles: China will not make a nuclear first strike, will not attack any non-nuclear country and will not export nuclear arms.


The French paper named as its source only "our information".

Meanwhile, the Yomiuri, Japan's largest daily newspaper, also reported from Beijing on Wednesday that China had unofficially sounded out Japanese government sources on a visit by Hatoyama to Nanjing, likely around the time he goes to the Shanghai Expo's Japan Day on June 12, with Hu visiting Hiroshima around the time of the November Asia-Pacific Economic Cooperation (APEC) summit to be held in Japan. The Japanese paper said reciprocal visits would aim at improving feelings between the two peoples. Still, unlike Le Figaro, the Yomiuri mentioned nothing about apologies or nuke promises. It cited "several Japanese and Chinese sources".

China's Foreign Ministry denied the Yomiuri report on Thursday, with a ministry spokeswoman, Jiang Yu, saying the media rumors of a Nanjing trip were "groundless". But she also said, in what sounded like a non-denial-denial, "It is too early to confirm the details." On the same day, Japan's chief cabinet secretary, Hirofumi Hirano, also denied the reports, saying "at this point, we are not considering" a visit by Hatoyama to Nanjing.

"I have not heard of any such plan," a top Foreign Ministry official also told Asia Times Online, speaking on condition of anonymity. "My guess is that some persons involved might have presented their wish list to have better relations. There is nothing concrete about it." This official's comment suggests that such talks are still going on either at lower government-to-government levels or through party-to-party channels.

The reports by Le Figaro and the Yomiuri, however, followed a similar report in November by the Japanese business magazine, Weekly Toyo Keizai. It reported a secret diplomatic schedule being prepared by relevant Chinese and Japanese players. It predicted that the visit to Beijing one month later by Ichiro Ozawa, secretary general of the DPJ, accompanying more than 600 people, including 143 DPJ lawmakers from the upper and lower houses of the Diet (parliament), would be the first of several Japan-China exchanges. The visit was conducted as part of regular exchanges between the DPJ and the CCP, whose general secretary is Hu.

The media reports have triggered strong reaction. After Le Figaro's report, China's Global Times posted a questionnaire about this possible Japan-China grand rapprochement on its Chinese-language website. More than 30,000 Internet users have responded.

When asked whether the Japanese leader should apologize at the Memorial for Compatriots Killed in the Nanjing Massacre by Japanese Forces of Aggression, 95.1% said "yes". Only 1% said "no". When asked whether the Japanese leader's apology would lead to Japan-China reconciliation, 24.7% said "yes" and 29.5% said "no".


Japanese leaders' visits to this memorial are nothing new. Hiromu Nonaka, then acting secretary general of the Liberal Democratic Party, visited the victims' memorial in Nanjing on May 9, 1998, laying flowers at the site and becoming the first leader from his party to do so. In the same month, former Japanese prime minister Tomiichi Murayama visited the site.

Even if speculation over Hatoyama's visit to Nanjing and Hu's visit to Hiroshima turns out to be nothing, it is still intriguing, as it may indicate that Japan's shift toward Asia, especially China, and away from the United States, is taking shape.

China seems to have refrained from using the Japan historic card to control its own people since 1996, when then-prime minister Shinzo Abe chose Beijing for his first overseas visit out of a desire to strengthen ties with the leaders of Japan's important neighbor. Historically, the CCP's one-party regime has been legitimized, in part, by its struggle against the Japanese invader.

Why then does China want Hatoyama to visit Nanjing? There are conflicting views among Japanese experts. Some say that in preparation for a succession of power in 2012 and beyond, Beijing's secret battles are intensifying. A faction of ex-president Jiang Zemin, who annoyed Japanese leaders by bringing up the history issue during a banquet with the emperor, has been gaining ground recently. Others believe Beijing wants to settle historic issues once and for all, to enable the two nations to build a future-oriented relationship of mutual trust, much like the Franco-German reconciliation that president Charles de Gaulle of France and West German chancellor Konrad Adenauer started by signing the Elysee Treaty in 1963, a foundation of Franco-German cooperation that led to European integration.

Some US officials and experts, especially right-leaning military planners, may be displeased to see Tokyo's approach to Beijing at a time when the relocation issue of the US Marine Corps Air Station Futenma in Okinawa prefecture has been deadlocked.

In a commentary titled "Japan's risky rapprochement with China" published on December 21 by The Wall Street Journal, Kelly Currie, a non-resident fellow of the Project 2049 Institute, a think-tank in Washington, wrote:
Prime Minister Hatoyama will likely continue his promised efforts to "rebalance" Japanese relations with the US and China, but now that he's actually responsible for governing, Mr Hatoyama needs to ask himself: Which country would ultimately keep the Japanese people's best interests at heart - democratic America or authoritarian China? If the prime minister answers the latter, then the Japanese public - and the Obama administration - really will need to start worrying.

Well, the relationship between Japan and China has been rapidly improving since Hatoyama's China-friendly administration was inaugurated last September, as is the relationship between Beijing and Taipei since the mainland-friendly administration of President Ma Ying-jeou took office in Taiwan in May 2008. The US administration of Barack Obama has followed suit.

Every country, driven by economic and political pragmatism, is rushing to cash in on China's huge consumer market. Japan is no exception. As a result, Japan-China-US trilateral relations are giving off a lot of heat in the unsettled state of affairs of Northeast Asia.

Kosuke Takahashi is a Tokyo-based journalist. Besides Asia Times Online, he writes for Jane's Defence Weekly as Tokyo correspondent. He can be contacted at letters@kosuke.net.

(Copyright 2010 Asia Times Online (Holdings) Ltd. All rights reserved. Please contact us about sales, syndication and republishing.)

CHINA, JAPAN & US: Clinton Points to Possible Tensions With China

January 12, 2010

By MARK LANDLER

HONOLULU — Secretary of State Hillary Rodham Clinton, embarking on her first diplomatic trip of 2010, will try to ease tensions with Japan, America’s most important Asian ally, over a stalled agreement to relocate a Marine base on the island of Okinawa.

But she acknowledged that relations with the region’s other major power, China, may be entering a rough period, as the United States pledges to sell weapons to Taiwan, which China regards as a renegade province, and President Obama plans a meeting with the Tibetan spiritual leader, the Dalai Lama, over the objections of Beijing, which considers him a separatist.

Mrs. Clinton, speaking to reporters Monday on her plane, said the United States and China had a “mature relationship,” which she said meant that “it doesn’t go off the rails when we have differences of opinion.”

“We will provide defensive arms for Taiwan,” Mrs. Clinton said. “We have a difference of perspective on the role and ambitions of the Dalai Lama, which we’ve been very public about.”

Mrs. Clinton was traveling to Hawaii, her first stop in a nine-day trip that will include Papua New Guinea, New Zealand and Australia. In Honolulu, she is scheduled to give a speech on United States security strategy in Asia, and to meet the Japanese foreign minister, Katsuya Okada.

Japan has frustrated and angered the Obama administration with its refusal to carry out a 2006 agreement to move a Marine Corps air station in Okinawa to a less populated area of the island.

Mrs. Clinton sought to play down the dispute, saying the alliance was “much bigger than any one particular issue.”

Japanese-American relations have been unsettled since August, when voters in Japan swept out the long-entrenched Liberal Democratic Party in favor of the slightly left-leaning Democratic Party, led by Yukio Hatoyama. Mr. Hatoyama spoke of forging closer ties to Asian neighbors like China, prompting concerns in Washington that Japan was pulling away from its close relations with the United States.

President Obama tried to reduce tensions when he visited Tokyo in November. But after he left, Mr. Okada pushed for a government inquiry into secret agreements with the United States in the 1960s and 1970s that allowed American aircraft and ships with nuclear weapons to enter Japan.

Most of the tension is rooted in the dispute over Marine Corps Air Station Futenma. The Obama administration wants Japan to honor a 2006 agreement to move the base to a less populated part of Okinawa. But Mr. Hatoyama campaigned to move it off the island or even out of Japan.

Mrs. Clinton said the bumps were aftershocks from Japan’s political earthquake. “You can imagine what it would be like in our own country, if after 50 years a party that had never held power, actually held it,” she said.

In her first visit to Beijing as secretary of state last February, Mrs. Clinton played down human rights concerns and emphasized cooperation on issues like trade and climate change. But on Monday, she took a tougher line, saying that Washington was a necessary counterweight to Beijing.

“People want to see the United States fully engaged in Asia, so that as China rises, there’s the presence of the United States as a force for peace and stability, as a guarantor of security,” Mrs. Clinton said.

She also called on China to use its influence to force North Korea back into negotiations on relinquishing its nuclear weapons. North Korea said Monday that it would not return to those talks unless sanctions against it were lifted, and it was able to negotiate a formal peace treaty with the United States to replace the 1953 truce that ended the Korean War.

Returning to those multiparty talks, she said, was a precondition for dealing with other issues.

Starting her second year as the nation’s chief diplomat, Mrs. Clinton spoke more about pressure than diplomatic engagement.

Speaking of Iran, she said the United States and its allies were discussing financial sanctions that would appear to be aimed at the Revolutionary Guards and other political players in the country, should diplomacy fail.

“It is clear that there is a relatively small group of decision makers inside Iran,” she said. “They are in both political and commercial relationships, and if we can create a sanctions track that targets those who actually make the decisions, we think that is a smarter way to do sanctions.”

But she added, “All that is yet to be decided upon.”

Copyright 2010 The New York Times Company

CHINA: Coal Is Linked to Cancer in China Province

January 12, 2010

By SINDYA N. BHANOO

Nonsmoking women in an area of China’s Yunnan province die of lung cancer at a rate 20 times that of their counterparts in other regions of the country — and higher than anywhere else in the world.

A group of scientists now say they have a possible explanation: the burning of coal formed during volcanic eruptions hundreds of millions of years ago.


Coal in that part of China contains high concentrations of silica, a suspected carcinogen, the scientists reported in a recent edition of the journal Environmental Science & Technology.

Like others in rural China, the families of Xuanwei County use coal for heat and for cooking. As the coal burns, particles of silica are released with the vapor and inhaled. Women, who do the cooking, face the greatest exposure.

“There is more silica in this coal than in 99.9 percent of all the samples we analyzed,” said an author of the study, Robert B. Finkelman, a professor of geology at the University of Texas at Dallas.

Dr. Finkelman and his colleagues found that quartz, of which silica is the primary component, made up 13.5 percent of the coal samples taken from Xuanwei County. In normal coal samples, quartz and other minerals are found only in trace amounts.

The grains of quartz were so small they were only visible through an electron microscope, Dr. Finkelman said. Strikingly, the coal found in neighboring villages did not contain quartz at the same high levels or with such fine grain.

When the volcanic eruptions occurred 250 million years ago, they set off a mass extinction and released acid gases, leading to a variety of changes in the earth’s environment, including acid rain. Dr. Finkelman speculated that the rain might have dissolved surface rocks composed of silica, which then might have worked its way into developing formations of coal.

The high cancer rates in Xuanwei have attracted the attention of scientists for decades. Dr. Qing Lan, an epidemiologist at the National Cancer Institute in Rockville, Md., is completing two studies involving hundreds of women and families there. While her team is confident that coal burning is causing the high rates of cancer, they are not certain it is due to silica.

She and Dr. Nathaniel Rothman, another epidemiologist at the institute, expect to finish collecting data this year and begin the tedious, multiyear process of analyzing it in hopes of isolating just what it is about the coal in Xuanwei that causes the high rates of cancer.

“You can never say any study is the last study,” Dr. Rothman said. “But we hope this really nails it.”

Copyright 2010 The New York Times Company

Acid attacks are 'easy' in Hong Kong

By Pauline Chiou, CNN

STORY HIGHLIGHTS
* Attacker hurled two bottles of acid on shoppers at busy market, police say
* 30 people, including children, injured in attack, police say
* Police rule out man arrested over weekend as acid attack suspect

Hong Kong, China (CNN) -- Another mysterious acid attack took place during the weekend in Hong Kong. It was the sixth such incident in the past year.

The target is always a crowded street full of shoppers and the weapon of choice: plastic bottles filled with acid.

The attacker (or attackers) throw the bottles from an upper floor or roof of a building overlooking the crowded street. Police have no suspects and no motive for the attacks.

I went to the scene of the latest attack at the famous Temple Street Night Market -- an area that is usually busy with local families and tourists.

Shopkeeper Khan Mohammed Bilal runs an electronics store, and he was working Saturday night when he heard the commotion. He stepped out into the intersection of Temple Street and Nanking Street and saw chaos.

Someone had just thrown two plastic bottles of acid into the intersection. He saw one person's red bag soaked with acid. He said he couldn't imagine what would've happened if the acid had splashed onto the person's head. He saw injured people crying.

"We do get nervous. We do feel scared. When this happens, it affects our business... I don't know the purpose of this, why this person is throwing this liquid."

Most witnesses believe the attacker was inside one of the old apartment buildings lining Temple Street.

My photographer, producer and I decided to see just how easy it is to get to the top of one of these buildings.

Most of the old apartment buildings have no front door to the entryway that leads into a stairwell.

We walked up 10 flights past individual apartments until we reached the roof. Again, the roof entryway had no door. There was only a line of laundry hanging across the doorway.

It was clear just how easy it is for anyone to walk off the street, get to the roof and throw objects off the top of the building. And the getaway? Easy.

In fact, there are many options: the stairwell we walked up, another stairwell that exits the other side of the building... or the roof of the next building.

The buildings are so close together a daring person can jump from roof to roof and descend another building's stairwell.

Of course, we don't know for sure if the attacker(s) used the roof, but it is a realistic possibility.

Tourists who were strolling through the area seemed either unaware or unconcerned. Ghadjar Siavoche of Geneva, Switzerland, comes to Hong Kong often for business. He already knew about the attack.

"It doesn't disturb me because it's a very isolated incident. It's a pity for Hong Kong because it's a very nice city. People here are so charming and so nice."

The city of Hong Kong is hoping to maintain that image despite the acid attacks. The police have no solid leads at the moment. They're hoping a $40,000 reward will motivate someone to hand over some information that can help them make an arrest.

© 2008 Cable News Network

China Surges Past West in Autos and Exports

January 12, 2010

By MICHAEL WINES

BEIJING — As much of the world struggles to clamber out of a serious recession, a gradual flow of economic power from West to East has turned into a flood.

New high points, it seems, are reached daily. China surged past the United States to become the world’s largest automobile market — in units, if not in dollars, figures released Monday show. It also toppled Germany as the biggest exporter of manufactured goods, according to year-end trade data. World Bank estimates suggest that China — the world’s fifth-largest economy four years ago — will shortly overtake Japan to claim the No. 2 spot.

The shift of economic gravity to China has occurred partly because growth there remained robust even as the world’s developed economies suffered the steepest drop in trade and economic output in decades.

But that did not happen by chance: China’s decisive government intervention in the economy, combined with the defiant optimism of its companies and consumers, has propelled an economy that until recently had seemed tethered to the health of its major export markets, including the United States.

Beijing’s state-run news media, indulging in a moment of self-congratulation, have hailed China’s new economic prominence as proof of national superiority.

The country’s economic miracle, the People’s Daily newspaper boasted last week, exists because its rulers — unlike those in other unnamed nations — can make quick decisions and ensure underlings carry them out. The Great Recession, the newspaper said, has laid bare cracks in plodding Western-style capitalism.

Yet China confronts a number of challenges about its recent surge, including whether its formula for growth is sustainable, and how it will manage its increasingly strained economic relations with the outside world. Those are likely to prove challenging issues for a leadership unaccustomed to making policy under an international spotlight.

Sustaining a global-size economy is nowhere near as simple as building one, some Chinese and Western economists say. As the Chinese navigate toward a bigger role in the world financial system, they are already running into diplomatic and political headwinds.

At home, ordinary citizens and economists alike worry that the government’s decision to flood the economy with cash has created speculative bubbles — in housing, in lending — that could burst with disastrous effect. But curbing speculation requires moves, such as raising interest rates, that could crimp the spree of investment and industrial expansion that are the main contributors to growth.

Abroad, the pressure on China to revalue its currency, the renminbi, is strengthening, and it seems sure to intensify after trade statistics released Monday showed that China’s yearlong downturn in export growth reversed in December. Keeping the renminbi fixed at a low rate against the dollar boosts China’s exports and its economy. But increasingly, it angers its trade partners.

China once could wave off complaints about its currency policies, arguing that it was a developing nation entitled to a bit of slack from its Western customers. But with the world’s fastest-growing economy — and more than $2 trillion in foreign reserves — that argument looks increasingly untenable.

“At a time when you’ve got 10 percent unemployment in the U.S. and a very slow and gradual global recovery — and China seems to be skyrocketing — the pressure on the Chinese to change some of these policies, including the exchange-rate policy, is really going to grow this year,” said Nicholas Consonery, a China analyst at Eurasia Group, the New York-based political risk research firm.

In theory, China’s growing economic clout should benefit everyone: in an interconnected world, growing trade creates jobs and money everywhere.

“China’s extremely important, no doubt about it. And overall, the more important China becomes, the better it is for the American economy,” Scott Kennedy, who heads the Research Center for Chinese Politics and Business at Indiana University, said in an interview.

That Shanghai-assembled iPod, Mr. Kennedy said, is the product of American research and design and marketing, and most of the proceeds from its sale go back into American coffers. But China’s rise also poses new risks both for Beijing and for its trading partners.

Its largely bruise-free journey through last year’s economic crisis aside, not everyone is convinced that Beijing has eliminated threats to its financial and economic health.

Hit hard by an initial drop in exports that was frighteningly steep for a leadership that has long promised and delivered fast growth, China poured $585 billion in stimulus money into its domestic economy. Officials also ordered state-run banks to increase their lending by double that amount, triggering a spree of easy money that created jobs for migrant factory workers and fueled rises in the price of assets, like stocks and real estate.

Some experts fear that too much of the stimulus money was dumped into unprofitable projects and bad loans that will surface in a few years. In that view, China’s 2009 boom, in which automakers sold nearly 14 million cars and trucks, and housing prices doubled, is really a sign of an overheated economy at risk of serious recession down the road.

Judged by the numbers, China’s economy still looks robust. In Beijing, officials said, per capita gross domestic product is expected to exceed $4,000 this year, a 10 percent jump from 2009. Last month, the value of China’s exports leaped by nearly a third over the same month in 2008 — and imports jumped 55 percent, pointing toward growth in manufacturing.

But a Chinese economic crisis, which could have been shrugged off a few years ago, would be a considerably more serious event in a world where Beijing runs the second-largest economy.

The government appears concerned. Last week, the central bank edged up the rate on a often-watched interbank loan, the first such hike in five months. That seemed to signal concern that the economy is expanding too quickly.

Many experts see few signs of immediate danger. After all, they note, China has gone on splurges before — building too many steel mills, and too many office buildings — only to see the nation’s breakneck growth sop up the excess capacity. With nearly a billion people still clawing to advance beyond peasant status, they say, China’s growth story has many chapters ahead.

Mr. Kennedy, the Indiana University expert, said he was less certain that endless growth is such a panacea. “No one defies economic laws,” he said. “Eventually you get it, whether you want it or not.”

Copyright 2010 The New York Times Company