News & Reports 2011-05-21

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In This Edition

 

Israel and the Palestinians react to US President Barack Obama's first public call for negotiating a two-state solution based around the borders before the 1967 Middle East War.

 

The Pakistani Taliban claims responsibility for a car bomb attack next to two US consulate² cars carrying Americans in northwest Pakistan's Peshawar.

 

Former IMF Chief Dominique Strauss-Kahn's resignation sparks a diplomatic race for the top job of the organization.

 

And China says further measures will be taken later this year to push forward reforms of its currency exchange rate management system.

 

 

Hot Issue Reports

 

Mix Reaction from the Middle East after Obama's Speech

US President Barack Obama has for the first time publicly called for a Palestinian state based on the borderlines that existed before 1967, which saw Israel take over East Jerusalem, the West Bank and Gaza in the Six Day War.

 

He urged the Israelis and Palestinians to negotiate a two-state solution based around the border.

 

Obama's call drew quick responses from both Israel and the Palestinians. Israeli Prime Minister Benjamin Netanyahu rejected it out of hand, saying that giving back the territory seized in 1967 will threaten Israel's security. And Palestinians, while welcoming the message, have urged the US administration not just to pay lip service but take "concrete steps" in support of Palestinian independence.

 

Our Jerusalem correspondent Xiaoyu reports:

 

Palestinian leadership in Ramallah was happy to hear Obama's call for seperate Israeli and Palestinian states along the pre-1967 war border, but seemed concerned by Obama's clear rejection³ towards their planned unilateral move to ask the United Nations for recognition.

 

Palestinian President Mahmoud Abbas called for an emergency session within Palestine and with other Arab nations as soon as possible.

 

Abbas's top aide Saeb Erekat spoke⁴ of his positive feeling towards Obama's speech.

 

"President Abbas and his determination to give President Obama's effort, and that of the international community, the chance they deserve, reiterates⁶ our commitment to all obligations in the making of the agreement signed and other international obligations including those specified⁷ in the Road Map and the Arab Peace Initiative. We hope that the Israeli government will reciprocate⁸ in order to give peace a chance."

 

Palestinian militant⁹ group Hamas, who just reached a unity⁵ agreement with rival party Fatah of the West Bank, urged the US administration to take "concrete steps", and not merely issue "slogans" in support of Palestinian independence.

 

In his speech, Obama stressed Israel's right to defend itself as well as the deep rooted US-Israel strategic partnership¹⁰, but his words of support seemed far from enough to satisfy the Jewish state. Israeli prime minister's office issued a statement after the speech, objecting to any withdrawal¹¹ to "indefensible" borders.

 

Israeli newspaper Haaretz reported that visiting Israeli diplomats¹² were blindsided in Washington before the speech, and the content itself further strains the relationship between Obama and Israeli Prime Minister Benjamin Netanyahu before their upcoming meeting.

 

Silvam Shalom, Israel's deputy Prime minister, gives reason why Israel responded bitterly.

 

"I think that every solution, every peace treaty that we achieve with the Palestinians should be based on end of claims, end of conflict. If we will serve only part of the issues like territory and security, and we leave open the other issues like refugees in Jerusalem, it might stuck, and it might blow up a short time after."

 

While direct talks between Israel and Palestine are not foreseeable after Fatah and Hamas's reconciliation¹³, the region is expected to remain calm in the near future, but disappointment and anger remains¹⁴.

 

For CRI, this is Xiaoyu from Jerusalem.

 

Talks on the US Mid¹-east Policy

And for more on the US' mid-east policy, we earlier spoke with Dr. George Kassimeris, a senior research fellow at the University of Wolverhampton in the UK.

 

Pakistan Taliban Bombs US Consulate in Peshawar

The Pakistani Taliban says it detonated a car bomb next to two US consulate cars carrying Americans in northwest Pakistan's Peshawar.

 

The bombing killed one passer-by and wounded at least 10 people, including several Americans.

 

Pakistani militants¹⁶ say the bombing was in revenge for the US raid that killed Al-Qaeda leader Osama bin¹⁵ Laden¹⁷.

 

It was the first attack on Westerners since bin Laden's death.

 

Said Ali Shah is a local resident who witnessed the attack.

 

"At that time I was in bathroom when the blast occurred. I came out of my compound and I saw some people were lying here and there. I went closer to rescue them. Meanwhile a foreign car came after the targeted vehicle. I was busy trying to help the victims and suddenly the men from the foreign car started firing on me, so I hid behind a tree. The injured were in a bad condition on the ground. After that the police and many people came and they started their work."

 

A Taliban spokesman later warned the US and NATO that they may launch more terrorist attacks to avenge¹⁸ bin Laden.

 

Strauss-Kahn Given Bail¹⁹, Race for IMF Top Post Intensifies²⁰

Former IMF chief Dominique Strauss-Kahn has now been granted bail in New York, after being formally charged with trying to rape²¹ a hotel maid.

 

The bail conditions include $1 million US dollars in cash, a $5 million dollar bond and continual house-arrest.

 

Strauss-Kahn is going to be released from custody²² in hours, and will appear in court again early June.

 

Strauss-Kahn's resignation as the head of the IMF has aroused a diplomatic race for the top job of the organization.

 

European officials have argued that his replacement²³ should be a European.

 

But the emerging economies, like China and Brazil, have said it is time to break Europe's traditional dominance over the position and appoint someone from a developing nation.

 

US Treasury²⁴ Undersecretary for International Affairs, Lael Brainard, has also called for an "open process" to select a replacement as soon as possible.

 

"We haven't taken a position on any particular candidate. What is important at this juncture²⁵ is that we move quickly to an open process to promptly²⁶ select the next managing director for this very important institution."

 

Meanwhile, IMF Acting²⁷ Managing Director John Lipsky reveals that the executive committee will determine the procedure frame of IMF's chief election before the end of this week.

 

"The economic policies standard of the institution reflects those of our agreements to our membership and executive committee, the board of executive directors, and so our policies remain unchanged. Of course we will respond to changing circumstances as necessary, but let me repeat, the institution will continue to fulfill²⁸ all its responsibilities in an effective and energetic way."

 

He adds that the IMF members will continually work on how to cope with the European sovereign debt crisis this week as scheduled.

 

Libya Warns US Unable to Order Gaddafi to Step Down

The Libyan government now remains defiant²⁹ despite that US President Barack Obama said Libyan leader Muammar Gaddafi will inevitably³⁰ leave power.

 

Libyan government spokesman Moussa Ibrahim.

 

"Obama is still delusional³¹, he believes the lies that his own government is spreading around the world and he believes his own media is spreading around the world. They have not proved one single charge against us and they refuse to investigate us."

 

Meanwhile, Ibrahim also suggested the NATO's decision to launch military action against Moammar Gaddafi was misled by the lop-sided media information.

 

"I call President Obama and all and every decent American official, politician, citizen - if you are interested in peace do not rely on media information. Media information is not valid³² legally, it does not form any reasonable basis for action by powerful governments."

 

Ibrahim's remarks came after NATO's continuing air strikes against the Libyan government troops with a coordinated³³ strike against Gaddafi's forces in the ports of Tripoli, Al Khums and Sirte.

 

NATO fighter jets attacked eight Libyan warships³⁴ and the country's intelligence agency in Tripoli.

 

Tepco President Quits as Firm Reports $15bn Loss

The president of Tepco, which operates the crippled Fukushima nuclear power plant, has resigned as the firm reported a loss of 1.25 trillion yen³⁵, or $15.3 billion US dollars, for the past financial year.

 

Masataka Shimizu explained his resignation.

 

"I would like to take responsibility for losing the credibility of nuclear safety and giving the public anxiety and concern. Therefore I wish to resign from the post of CEO together with the vice-president, Mr. Muto."　

 

Shimizu will be replaced by managing director Toshio Nishizawa.

 

Tepco's loss is a record for a non-financial firm in the country.

 

The earthquake and tsunami³⁶ that hit Japan on March 11th severely³⁷ damaged the Fukushima plant and it has been leaking radiation ever since.

 

Shimizu told reporters that he wanted to take managerial responsibility and bring a symbolic³⁸ close, despite the fact those overall losses from the disaster are expected to be much bigger.

 

According to Bank of America Merrill Lynch, total compensation claims could reach as much as $134 billion US dollars.

 

China to Push Forward RMB Exchange Rate Mechanism³⁹ Reform

China has experienced several reforms of its currency exchange rate management system. China's Central Bank, the People's Bank of China, claims in its latest annual report that further measures will be taken in a push forward of reform in 2011. Zhang Mengyuan has more.

 

After the reform in 1994, 2005 and 2010, the Renminbi exchange rate mechanism is more flexible and increasingly influenced by the market.

 

Since 2005 the Renminbi has appreciated 27 percent. As inflation is still an issue around the world, some people believe the appreciation⁴⁰ of Renminbi may help in resolving this pressure. However, experts consider it may cause more hot money inflows and is not beneficial for the country's commerce. Li Zhongshang, an expert in economy, elaborates.

 

"We should be cautious with currency appreciation. For example, in the US, the Federal Reserve Bank has been adopting a relatively⁴¹ loose currency policy over the past three decades, which may have caused high inflation. However, American people can still buy relatively cheap goods, with the help of Chinese-made products. If China's currency appreciates, and the goods become more expensive, America may turn to cheaper manufacturing countries such as Vietnam, Cambodia and Mexico. This will actually do harm to both China and US."

 

According to the 12th Five-Year Plan, China will reform the development mode from high speed to more efficient economic development. The market-related currency system will make Chinese enterprises more competitive in the world market. Zhao Xijun, professor from Renmin University of China, explains.

 

"In the export area, many enterprises are relying on the competitive low price advantage. But they may lose this superiority if other countries can also produce similar cheap goods. Through the reform of currency mechanism, enterprises will work on researching and developing their products so as to prepare for a more competitive world market. Our commerce structure and development mode will also be enhanced as a result."

 

Although a more flexible currency rate is expected in the near future, experts suggest that China take the reform at a reasonable pace according to its economic development.

 

For CRI, I'm Zhang Mengyuan.

 

Experts Call for Enacting⁴³ of Law as China Faces Big Atomic Energy Development

China's first Atomic Energy Law Forum⁴⁴, which was held in Beijing earlier this month, has called for the promotion⁴⁵, foundation and perfection of an Atomic Energy Law, so that the country's atomic energy industry will develop in a healthy and sustainable way. Experts believe it is imperative⁴⁶ to have such a law because of the future development of this industry. Wu Jia has more.

 

It's reported that the Atomic Energy Law is going to be a comprehensive one covering radioactive mineral's exploitation, transportation, storage, use and abandonment.

 

China has attempted to enact⁴² the Atomic Energy Law twice since the 1980s. Wang Jin, Director of Nuclear Policy and Law Research Center at Peking University, says there have been problems in drafting this law.

 

"Atomic energy makes up a small part of energy use in China. Therefore various departments held different opinions on the necessity of setting up this law."

 

China's first nuclear power plant was built in the 1980s. There are now 11 nuclear power plants operating in the country.

However, latest statistics from the IAEA show that 64 nuclear power reactors⁴⁷ are currently under construction worldwide and China takes up about 40%. Wang Jin says it is imperative to draw up the Atomic Energy Law, since China's National Development and Reform Commission has issued a mid and long term development plan for nuclear power, which indicates big advances in nuclear power.

 

"We need a law to regulate relevant departments' responsibility. Current administrative⁴⁸ regulations are strict when it comes to operating a nuclear power plant, but they become helpless in front of social problems such as nuclear safety."

Wang Jin says the current operation of nuclear power plants in China is based on administrative regulations as well as IAEA regulations.

 

Duan Kuang, professor of civil law from Fudan University, adds that creating an Atomic Energy Law is also necessary for China's nuclear power plant export.

 

"If we have such a law, it will help in dealing⁴⁹ with some related problems."

 

Last month, China's State Council initiated⁵⁰ the legislation of atomic energy law. This law is expected to solicit⁵¹ opinions from relevant departments at the end of this year.

 

For CRI, this is Wu Jia.

 

Newspaper Picks

 

China Daily: A Chinese court in Shaanxi has rejected the death sentence appeal by a music student who stabbed a cafe waitress to death to cover up a hit-and-run accident in Xi'an.

 

21-year-old Yao Jiaxin is a student at the Xi'an Conservatory⁵² of Music, he was convicted of murdering Zhang Miao last October in Xi'an, to prevent her from reporting an incident in which Yao hit her with his car.

 

The case has been widely followed in the media and has aroused widespread public outcry over increasing incidents of reckless behavior by the country's wealthy younger generation.

 

This case sparked controversy⁵⁴ as the stabbing was extremely violent, with the victim being wounded in the chest, stomach and back several times until she died.

 

Lawyers for Yao say he was suffering from depression at the time and committed the killing⁵⁵ in 'the heat of passion'.

 

Previous media reports say Yao was forced by his parents to practice piano resulting in him sometimes smashing piano keys to vent⁵³ anger.

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