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news.notes20090520a

2009-05-20 23:40:05 | Weblog
[Biography of the Day] from [Britannica]

Wednesday, May 20, 2009
Honoré de Balzac
French author Honoré de Balzac—considered one of the greatest fiction writers and best known for a collection of novels and short stories collectively called La Comédie humaine (The Human Comedy)—was born this day in 1799.

[On This Day] from [Britannica]

Wednesday, May 20, 2009
1862: U.S. Homestead Act signed
On this day in 1862, U.S. President Abraham Lincoln signed the Homestead Act, which provided 160 acres of public land virtually free of charge to those who had lived on and cultivated the land for at least five years.

news.notes20090520b

2009-05-20 22:24:17 | Weblog
[TODAY'S TOP STORIES] from [The Japan Times]

[NATIONAL NEWS]
Wednesday, May 20, 2009
Onboard quarantine flu checkups to end
Strategy shifts to containing domestic outbreak

(Kyodo News) Quarantine inspections to identify people infected with swine flu aboard airplanes arriving from North America will be scaled down and terminated as early as the end of this week, health ministry officials said Tuesday.

Although the measure has been in place to prevent the entry of the new H1N1 strain of influenza, the number of domestic infections grew to 193 after the Kobe Municipal Government confirmed 10 additional patients, including a 1-year-old girl.

Chief Cabinet Secretary Takeo Kawamura told a news conference the quarantine inspections were worthwhile because they discovered four cases of infection at Narita International Airport.

"But we have to shift our focus to domestic measures in line with the spread (of the H1N1 virus)," Kawamura said. "From this aspect, we think we need to scale down the operations" to prevent entry of the new flu.

The government is now determining the best timing to end onboard quarantine inspections, he added.

The four cases at Narita involved a group of students and teachers who had returned from a trip to Canada via the U.S.

The quarantine checks have been conducted aboard planes from the U.S., Canada and Mexico that arrive at Narita, Kansai and Chubu airports.

Health, Labor and Welfare Minister Yoichi Masuzoe told a separate news conference, "We can assume that the virus is spreading domestically already," referring to the cases of H1N1 flu found in Hyogo and Osaka prefectures.

"We have to devote human resources to respond to such a situation," he said.

Masuzoe also suggested the central government will allow local governments to have more authority on taking measures to tackle the new H1N1 influenza, such as hospitalizing patients and restricting people's movements or activities.

Woman held at Jeju
SEOUL (Kyodo) South Korean health authorities quarantined a Japanese woman at an airport on the resort island of Jeju after she showed symptoms of having H1N1 swine flu, airport quarantine officials said Tuesday.

The 65-year-old tourist from Hyogo Prefecture arrived at Jeju International Airport from Kansai International Airport earlier Tuesday.

Further tests were being conducted to determine if she has swine flu.


[NATIONAL NEWS]
Wednesday, May 20, 2009
Pace of H1N1 spread in Kansai seen slowing

By ERIC JOHNSTON
Staff writer

OSAKA — Although the tally of confirmed swine flu infections in Hyogo and Osaka prefectures surpassed 190 on Tuesday, the pace of growth in the number of new cases appeared to be slowing, and some of the patients were reportedly recovering.

New problems loom on the horizon, however, as increasing numbers of people switch their concern from emergency health measures to the impact of the new H1N1 virus on their everyday lives, including education and the local economy.

As of Tuesday night, 193 people were confirmed as having been infected with the H1N1 virus.

The number surged more than 100 new infections from Sunday to Monday.

Most of those infected are junior high and high school students at Osaka and Hyogo prefectural schools. Emergency measures remained in effect, and people were encouraged to wear face masks and take other precautions.

Hyogo and Osaka prefectures, as well as the Osaka and Kobe municipal governments, have ordered schools closed for the week. More than 4,000 kindergarten, elementary, junior high and high schools are closed until either Saturday or Monday, as well as 61 public and private universities.

The educational and economic impact of the outbreak led the governors of Hyogo and Osaka to issue an appeal for central government help during a meeting with health minister Yoichi Masuzoe on Monday. Masuzoe later announced there would likely be a change in government policy by the end of the week.

Hyogo Gov. Toshizo Ido emphasized on Tuesday his concern with the current system, whereby people call a fever consultation center and then go to hospital if necessary. Hyogo officials said 103 people as of Tuesday afternoon had been confirmed as having contracted the H1N1 virus and that thousands of people flooded emergency hotlines Monday and Tuesday either saying they were ill or were seeking advice.

"I told the health minister the likelihood of the current system becoming more difficult because of the large volume of people descending on medical facilities was great," Ido said. "I asked the minister for measures that authorize home care for those who are mildly ill and assign hospital beds to those who are seriously ill."

Even as the central government moves to become more involved, some patients are recovering. By Tuesday morning, Kobe officials said 11 people who had been infected with the virus, including 10 high school students, had been released from hospitals.

In Osaka, some 70 people were confirmed as having the H1N1 virus and, like Hyogo, many people were wearing masks in public. But in and around the city center in the afternoon, some said they were more concerned about the effect the virus would have on the local economy and their children's education.

"Yes, we've seen a dropoff in business these last few days. The announcement that people should stay away from crowded areas has meant a noticeable decline in customers," said a sales clerk at the Junkudo bookstore near Umeda Station.

Parents, however, were concerned about what the school closures mean for their children. Some fear the unscheduled weeklong vacation will put them behind students in other prefectures.

"I wish school officials would explain as soon as possible how the lessons will be made up and when," said Toshimi Kurotani, a 37-year-old mother with two kids in elementary school.

In Kobe, the economic effect is related to education, as May is normally the time of year when many schools take study trips. Kobe-area hotels reported that not only business travelers but also a number of schools from around Japan have canceled, or are considering canceling, trips to the city.

Three Gifu schools have already canceled their upcoming trips to Kansai, and many more are considering the possibility. Some schools in Kyushu have announced they will not send students to Hyogo or Osaka this month, and schools as far away as Tokyo are also reconsidering their Kansai plans.

Nara, also a popular destination for school trips, is likely to see a number of cancellations, especially after 1,117 junior high and high school students there who have been on sick leave since Monday remain under medical observation.

A Nara Prefecture spokeswoman said the results of tests to determine if the students are infected with the H1N1 virus were still pending.


[NATIONAL NEWS]
Wednesday, May 20, 2009
Launch of DPJ executive lineup draws flak for Ozawa role

By ALEX MARTIN
Staff writer

New Democratic Party of Japan President Yukio Hatoyama officially launched his executive lineup Tuesday, with Katsuya Okada, his rival in the party leadership race, as secretary general and former DPJ boss Ichiro Ozawa as deputy party chief in charge of election strategy.

Retaining Ozawa in a key post despite his May 11 exit due to the indictment of his top aide in a shady political donations scandal has already drawn criticism not only from the ruling camp but also from some members within the DPJ.

However, during a meeting of DPJ lawmakers from both chambers of the Diet, Hatoyama stressed party unity will be the priority in the upcoming Lower House election. Given the limited amount of time before the election must be held, he added that he will keep personnel changes to a minimum.

"We only have a few months to go before the general election," Hatoyama said. "Large movements within the party are undesirable (under such conditions)."

Hatoyama named Tenzo Okumura as new chairman of public relations, and in turn appointed Yoshihiko Noda, the previous public relations chief, to work under Okada as vice secretary general.

Hatoyama retained Naoto Kan and Azuma Koshiishi in their posts as "acting presidents," meaning they are effectively the party's deputy chiefs.

It is the second time that Okada has been appointed secretary general.

"I worked under Naoto Kan the last time I was secretary general," Okada said during the meeting, adding that he believes the role entails fully supporting the president.

"However, this time we have three heavyweights, including Ozawa, as acting presidents . . . I wonder if I'd be able to adequately support them all," Okada joked, drawing applause and laughter from the assembled lawmakers.

Although Okada lost to Hatoyama by a relatively large margin in Saturday's election, he had higher ratings in national opinion polls. This has prompted questions of whether the party will be able to topple the Liberal Democratic Party-New Komeito ruling bloc with Hatoyama at the helm.

news.notes20090520c

2009-05-20 21:25:33 | Weblog
[TODAY'S TOP STORIES] from [The Japan Times]

[BUSINESS NEWS]
Wednesday, May 20, 2009
Major banking groups report massive losses

By TAKAHIRO FUKADA
Staff writer

The economic recession and tumbling stock market forced most of Japan's major banking groups to report losses in the business year that ended in March.

On Tuesday, Mitsubishi UFJ Financial Group Inc. reported a group net loss of 256.9 billion in the 2008 business year, in stark contrast with the net profit of 636.62 billion it posted a year earlier.

MUFG said it spent 608.4 billion to write off bad loans for the year, while its shareholdings took a 408.7 billion hit. For the current year to March 2010, it is forecasting a net profit of 300 billion.

While banks are not likely to suffer further heavy losses this year from their shareholdings, some analysts predict ongoing economic stagnation may weigh on the lenders as they write off further bad debts.

"With some exceptions, banks went deep into the red for the first time in several business years," said Masahiko Watanabe, senior director at Fitch Ratings Ltd.

Watanabe said the financial crisis triggered deterioration of the real economy, which increased corporate bad loans.

He also pointed out that falling stock prices hurt the banking groups, which continue to own substantial shares in their trading companies.

The combined credit costs for the three main banking groups reached 1.86 trillion, up from 580.6 billion a year earlier.

Mizuho Financial Group Inc. booked 539.3 billion in credit costs and logged 444.2 billion in losses from tumbling stock prices.

Sumitomo Mitsui Financial Group Inc. said it incurred 550 billion in credit costs and 223.1 billion in losses from its shareholdings.

Resona Holdings Inc. posted credit costs of 163.9 billion.

As a result, the combined net loss of the four banking groups reached 1.2 trillion. Only Resona posted a net profit of 123.9 billion.

Watanabe said business results for the banking groups in business 2009 will largely depend on economic conditions. "Everyone is hoping for a recovery in the latter half of the year," he said.

Watanabe said the worsening economy could put further pressure on banks with nonperforming loans, leading to a dropoff in lending and further deterioration of corporate businesses and more restructuring.


[BUSINESS NEWS]
Wednesday, May 20, 2009
Businesses fret outbreak's impact
Public reaction may hit already fragile economy

By KANA INAGAKI
Kyodo News

Many Japanese companies had hardly finished announcing their dismal earnings results in March when a new economic threat began to emerge — a flu epidemic that would strike the nation with alarming speed.

The number of confirmed swine flu cases has exploded a week since the first case was discovered at Narita International Airport, so far sickening mostly students or those predisposed to illness.

The speed with which the virus has spread has shocked the public, which is buying up face masks at a swift pace in the belief they will offer some protection from the flu.

While the new H1N1 flu is considered less virulent than other recent contagions, such as bird flu and SARS, some experts say it could nevertheless have a damaging impact on the economy, especially at a time when positive data and stimulus measures are beginning to lift consumer sentiment.

In a report released in late April, Tatsushi Shikano, senior economist at Mitsubishi UFJ Securities Co., estimated that the spread of the new influenza overseas will reduce real gross domestic product in the April-June quarter by 0.4 percent.

The impact could be larger if consumption in leisure and service areas declines and if factories briefly suspend production as they did during the SARS outbreak in 2003, Shikano said.

All Nippon Airways said Monday there have been 5,070 cancellations for international flights since April 27. It said 179 of the cancellations occurred Saturday and 132 Sunday. The regions affected were mostly North America, Europe and China. Rival Japan Airlines did not provide specific figures.

"It's not so much that the cancellations are huge, but reservations are dropping," company spokesman Rob Henderson said, adding that domestic and overseas school trips have also been canceled.

"We're hoping (the flu problem) won't go as far as the summer," he said.

Companies like Shiseido Co. and Mitsubishi Heavy Industries Ltd. have called on employees to refrain from taking unnecessary domestic trips and overseas business trips.

"If the movement of people is restrained, money flows will also be affected, so there will be a negative impact on the economy, centering on the Kansai region," Mitsuru Saito, chief economist at Tokai Tokyo Securities Co., said.

Saito said the financial markets are experiencing selling pressure amid fears the new flu's rapid spread will ravage the travel and leisure markets this summer and dampen spending during the yearend shopping season if the virus mutates into a more deadly disease in autumn.

The Ministry of Economy, Trade and Industry has begun to think about support measures for smaller companies, such as government-backed loans and other aid programs, to deal with the virus, vice minister Harufumi Mochizuki said.

The domestic outbreak comes at a time when economic sentiment is beginning to rise and auto and electronics makers have signaled that production cuts are bottoming out.

Consumer sentiment hit its highest in April since last June. Sources have said the Bank of Japan is considering upgrading its economic assessment for the first time in almost three years.

But company executives like Panasonic Corp. President Fumio Otsubo have cited the potential threat posed by the influenza strain as one reason why a strong recovery in fiscal 2009 is unlikely.

"We can't hold high expectations with influenza, financial and auto woes still present," Otsubo said after the company projected a hefty group net loss of 195 billion for the current business year.


[BUSINESS NEWS]
Wednesday, May 20, 2009
Softbank unveils summer handsets

(Kyodo News) Softbank Mobile Corp. unveiled its new summer phone lineup Tuesday, including a solar model and a handset designed by Giorgio Armani.

The nation's third-largest mobile phone carrier said the first of 19 new models will start hitting store shelves by the end of the month.

The lineup will focus on the firm's plan to "strengthen the content" and functions of mobile phones to make them more appealing, Softbank Mobile President Masayoshi Son said.

One of the attractions is the Solar Hybrid 936SH by Sharp Corp., which is trying to grow its solar-panel business. The handset, which can be recharged by solar energy, is slated to go on sale in late August for an estimated price of around 40,000.

"The key word in current times is 'eco,' and having said that, this is our latest offering that is environmentally friendly," said Son, who also heads parent Softbank Corp. "On top of that, this particular handset is convenient for people on business trips and outings such as camping."

The Solar Hybrid can collect enough energy for two hours of standby display time or a call of one minute if recharged in sunlight for about 10 minutes, Softbank said.

The company also rolled out the classy 830SC Emporio Armani handset, a collaboration between Giorgio Armani Spa and Samsung Electronics.

The handset has the Armani name and logo on its side.

Softbank said the design was created by Armani with night views of Tokyo in mind.

The Armani handset will be available in mid-September.


[BUSINESS NEWS]
Wednesday, May 20, 2009
Osaka to sell all holdings in USJ

OSAKA (Kyodo) The municipal government of Osaka said Tuesday it will sell all of its shareholdings in USJ Co., the operator of the Universal Studios Japan theme park in Osaka, in a tender offer being carried out by an investment fund affiliated with Goldman Sachs Group Inc.

The city now holds 200,000 shares in USJ, or an equity stake of 9.23 percent. In the tender offer, the investment fund is purchasing USJ shares for 50,000 each.

The municipal government is expected to use the proceeds, worth 10 billion, to cover losses incurred by semipublic business entity World Trade Center Building (Osaka) Inc. as well as fund the redevelopment of waterfront areas in the city, officials said.

The heavily indebted World Trade Center Building (Osaka) filed for court protection from creditors under the corporate rehabilitation law in March.

When USJ began operations in 2001, Osaka played a key role in the management of the company, sending in a city official to serve as president.

After the share sale, the city will collect a loan of 16 billion from USJ, which will fall due in 2014, and retain ties with the company only through leasing of its land.

Traded on the Tokyo Stock Exchange's Mothers market for startups, USJ shares finished Tuesday's trading at 48,300, down 1,500 from Monday.

news.notes20090520d

2009-05-20 19:02:46 | Weblog
[Today's Paper] from [Los Angeles Times]

ANALYSIS
California voters exercise their power -- and that's the problem
Residents relish their role in the lawmaking process, but they share the blame for the state's severe dysfunction.

By Michael Finnegan
May 20, 2009

Californians are well known for periodic voter revolts, but on Tuesday they did more than just lash out at Gov. Arnold Schwarzenegger and the Legislature over the state's fiscal debacle.

By rejecting five budget measures, Californians also brought into stark relief the fact that they, too, share blame for the political dysfunction that has brought California to the brink of insolvency.

Rightly or wrongly, voters in the special election refused either to extend new tax hikes or to cap state spending. They also declined to unlock funds that they had voted in better financial times to set aside for special purposes.

Nearly a century after the Progressive-era birth of the state's ballot-measure system, it is clear that voters' fickle commands, one proposition at a time, are a top contributor to paralysis in Sacramento. And that, in turn, has helped cripple the capacity of the governor and Legislature to provide effective leadership to a state of more than 38 million people.

Clogged freeways, the decline of public schools, an outdated water system and a battered economy are just a few of the challenges demanding action by state leaders. Instead, they are consumed by yet another budget crisis, one that voters worsened Tuesday.

"No one's really stepping back and confronting the harsh realities that face our state in a critical sense, because of constraints put on our elected leaders," said Mark Baldassare, president of the Public Policy Institute of California. "We're unable to focus on the long term and the big picture at a time when we desperately need to do so."

The results Tuesday fit Californians' long-standing pattern of demanding what is ultimately irreconcilable, all the more so in an economic downturn: lower taxes and higher spending.

"We all want a free lunch, but unfortunately that doesn't exist," said former Gov. Gray Davis, whose 2003 recall stemmed largely from a budget crisis brought on by the dot-com bust. For decades, Davis said, Californians have been "papering over this fundamental reality that the state has been living beyond its means."

Davis and many other elected officials bear some responsibility for that. But so do voters.

In the Proposition 13 tax rebellion of 1978, Californians voted to require a two-thirds approval by the Legislature to raise taxes, a major obstacle to budget agreements. Over the last couple of decades, voters have also passed a patchwork of ballot measures directing billions of dollars to favorite causes, among them public schools and transportation projects.

On Tuesday, Californians showed they were unwilling to scale back their demands in tight times: Voters turned down propositions that would have freed up money that they set aside years ago for mental-health and children's programs.

"The irony is that the more the hands of the Legislature and governor are tied up, the more frustrated people are," said Tim Hodson, director of the Center for California Studies at Cal State Sacramento.

Together, voters' piecemeal decisions since the 1970s have effectively "emasculated the Legislature," said John Allswang, a retired Cal State L.A. history professor.

"They're looking for cheap answers -- throw the guys out of power and put somebody else in, or just blame the politicians and pretend you don't have to raise taxes when you need money," he said.

"This is what the public wants, and they deceive themselves constantly. They're not realistic."

The public's contradictory impulses were laid bare by a recent Field Poll. It found that voters oppose cutbacks in 10 of 12 major categories of state spending, including the biggest, education and healthcare. Yet most voters were unwilling to have their own taxes increased, and they overwhelmingly favored keeping the two-thirds requirement for tax hikes.

"They clearly want more in services than they're willing to pay for in taxes," said Ethan Rarick, director of the Robert T. Matsui Center for Politics and Public Service at UC Berkeley.

Also intensifying California's troubles is a surge in debt, often with voter consent at the ballot box, which makes future budgets harder and harder to balance. Under Davis, outstanding general-obligation debt jumped from $26 billion to $37 billion; it has soared to more than $70 billion under Schwarzenegger, according to the state treasurer's office.

Adding to the state's difficulties is the complexity of many ballot measures, no doubt a factor in the defeat of the main budget measures that lawmakers put before voters Tuesday.

"We pay the legislators to go to Sacramento and figure these things out," said Denise Spooner, a lecturer on California history at Cal State Fullerton.

As for the cumulative problems created by the last few decades of ballot-measure voting, she said, "I certainly don't think this is what the Progressives had in mind."

To John Hein, a veteran Sacramento campaign consultant, the absence of any master vision by voters appears to be a key flaw in the state's recent history with ballot measures.

"They kind of take each issue in a microcosm, rather than relate the decision to prior decisions, or future decisions that they might make," he said. "Voters don't think about the consequences of how one thing fits with another."

Others point to the term limits that voters imposed on state officials in 1990 as an enduring problem. Lawmakers who focus on quick career advancement tend to neglect California's long-term problems, they say.

Whatever the ups and downs of the proposition system, California's voters have seen themselves for a full century as "the arbiters of the future of the state," said social historian D.J. Waldie. To Waldie, the grim circumstances of Tuesday's election suggest that they are losing faith in any grand ambitions for public investment in California's future.

"I'm rather pessimistic at this point," he said. "We're reaching the point where Californians are throwing in the towel."

news.notes20090520e

2009-05-20 18:05:55 | Weblog
[Today's Paper] from [The New York Times]

Arms Sent by U.S. May Be Falling Into Taliban Hands

By C. J. CHIVERS
Published: May 19, 2009

KABUL — Insurgents in Afghanistan, fighting from some of the poorest and most remote regions on earth, have managed for years to maintain an intensive guerrilla war against materially superior American and Afghan forces.

Arms and ordnance collected from dead insurgents hint at one possible reason: Of 30 rifle magazines recently taken from insurgents’ corpses, at least 17 contained cartridges, or rounds, identical to ammunition the United States had provided to Afghan government forces, according to an examination of ammunition markings by The New York Times and interviews with American officers and arms dealers.

The presence of this ammunition among the dead in the Korangal Valley, an area of often fierce fighting near Afghanistan’s border with Pakistan, strongly suggests that munitions procured by the Pentagon have leaked from Afghan forces for use against American troops.

The scope of that diversion remains unknown, and the 30 magazines represented a single sampling of fewer than 1,000 cartridges. But military officials, arms analysts and dealers say it points to a worrisome possibility: With only spotty American and Afghan controls on the vast inventory of weapons and ammunition sent into Afghanistan during an eight-year conflict, poor discipline and outright corruption among Afghan forces may have helped insurgents stay supplied.

The United States has been criticized, as recently as February by the federal Government Accountability Office, for failing to account for thousands of rifles issued to Afghan security forces. Some of these weapons have been documented in insurgents’ hands, including weapons in a battle last year in which nine Americans died.

In response, the Combined Security Transition Command-Afghanistan, the American-led unit tasked with training and supplying Afghan forces, said it had made accountability of all Afghan police and military property a top priority, and taken steps to locate and log rifles issued even years ago. The Pentagon has created a database of small arms issued to Afghan units.

No similarly thorough accountability system exists for ammunition, which is harder to trace and more liquid than firearms, readily changing hands through corruption, illegal sales, theft, battlefield loss and other forms of diversion.

American forces do not examine all captured arms and munitions to trace how insurgents obtained them, or to determine whether the Afghan government, directly or indirectly, is a significant Taliban supplier, military officers said.

The reasons include limited resources and institutional memory of issued arms, as well as an absence of collaboration between field units that collect equipment and the investigators and supervisors in Kabul who could trace it.

In this case, the rifle magazines were captured last month by a platoon in Company B, First Battalion, 26th Infantry, which killed at least 13 insurgents in a nighttime ambush in eastern Afghanistan. The soldiers searched the insurgents’ remains and collected 10 rifles, a rocket-propelled-grenade launcher, 30 magazines and other equipment.

Access to Taliban equipment is unusual. But after the ambush, the company allowed the items to be examined by this reporter.

Photographs were taken of the weapons’ serial numbers and markings on the bottoms of the cartridge casings, known as headstamps, which can reveal where and when ammunition was manufactured. The headstamps were then compared with ammunition in government circulation, and with this reporter’s records of ammunition sampled in Afghan magazines and bunkers in multiple provinces in recent years.

The type of ammunition in question, 7.62x39 millimeter, colloquially known as “7.62 short,” is one of the world’s most abundant classes of military small-arms cartridges, and can come from dozens of potential suppliers.

It is used in Kalashnikov rifles and their knockoffs, and has been made in many countries, including Russia, China, Ukraine, North Korea, Cuba, India, Pakistan, the United States, the former Warsaw Pact nations and several countries in Africa. Several countries have multiple factories, each associated with distinct markings.

The examination of the Taliban’s cartridges found telling signs of diversion: 17 of the magazines contained ammunition bearing either of two stamps: the word “WOLF” in uppercase letters, or the lowercase arrangement “bxn.”

“WOLF” stamps mark ammunition from Wolf Performance Ammunition, a company in California that sells Russian-made cartridges to American gun owners. The company has also provided cartridges for Afghan soldiers and police officers, typically through middlemen. Its munitions can be found in Afghan government bunkers.

The “bxn” marking was formerly used at a Czech factory during the cold war. Since 2004, the Czech government has donated surplus ammunition and equipment to Afghanistan. A.E.Y. Inc., a former Pentagon supplier, also shipped surplus Czech ammunition to Afghanistan, according to the United States Army, including cartridges bearing “bxn” stamps.

Most of the Wolf and Czech ammunition in the Taliban magazines was in good condition and showed little weathering, denting, corrosion or soiling, suggesting it had been removed from packaging recently.

There is no evidence that Wolf, the Czech government or A.E.Y. knowingly shipped ammunition to Afghan insurgents. A.E.Y. was banned last year from doing business with the Pentagon, but its legal troubles stemmed from unrelated allegations of fraud.

Given the number of potential sources, the probability that the Taliban and the Pentagon were sharing identical supply sources was small.

Rather, the concentration of Taliban ammunition identical in markings and condition to that used by Afghan units indicated that the munitions had most likely slipped from state custody, said James Bevan, a researcher specializing in ammunition for the Small Arms Survey, an independent research group in Geneva.

Mr. Bevan, who has documented ammunition diversion in Kenya, Uganda and Sudan, said one likely explanation was that interpreters, soldiers or police officers had sold ammunition for profit or passed it along for other reasons, including support for the insurgency. “Same story, different location,” he said.

The majority of cartridges in the remaining 13 Taliban magazines bore headstamps indicating they were made in Russia in the Soviet period. Several rounds had Chinese stamps and dates indicating manufacture in the 1960s and ’70s. A smaller number were Hungarian. Much of this other ammunition was in poor condition.

Hungarian and Chinese ammunition had also been provided to the Afghan government by A.E.Y., making it possible that several of the remaining magazines included American-procured rounds.

The American military did not dispute the possibility that theft or corruption could have steered Wolf and Czech ammunition to insurgents.

Capt. James C. Howell, who commands the company that captured the ammunition, said illicit diversion would be consistent with an enduring reputation of corruption in Afghan units, especially the police. “It’s not surprising,” he said.

But he added that in his experience this form of corruption was not the norm. Rather than deliberate diversion, he said, the more likely causes would be poor discipline and oversight in the Afghan national security forces, or A.N.S.F. “I think most A.N.S.F. don’t want their own stuff coming back at them,” he said.

Captured Taliban rifles provide a glimpse at arms diversion as well.

After the battle in the eastern village of Wanat last year, in which 9 Americans died and more than 20 were wounded, investigators found a large cache of AMD-65 assault rifles in the village’s police post, which was implicated in the attack, according to American officers. In all, the post had more than 70 assault rifles, but only 20 officers on its roster. Three AMD-65s were recovered near the battle as well.

The AMD-65, a distinctive Hungarian rifle, was rarely seen in Afghanistan until the United States issued it by the thousands to the Afghan police. They can now be found in Pakistani arms bazaars.

In the American ambush last month, all of the 10 captured rifles had factory stamps from China or Izhevsk, Russia. Those with date stamps had been manufactured in the 1960s and ’70s.

Photographs of the weapons and serial numbers were provided to Brig. Gen. Anthony R. Ierardi, the deputy commander of the transition command. Upon checking the Pentagon’s new database, the general said one of the Chinese rifles had been issued to an Afghan auxiliary police officer in 2007. How Taliban insurgents had acquired the rifle was not clear.

The auxiliary police, which augmented the Afghan Interior Ministry, were riddled with corruption and incompetence. They were disbanded last year.

Speaking about the captured Taliban ammunition, General Ierardi cautioned that the range of headstamps could indicate that insurgent use of American-procured munitions was not widespread. He noted that the captured ammunition sampling was small and that munitions might have leaked through less nefarious means.

CONTINUED ON news.notes20090520f

news.notes20090520f

2009-05-20 17:09:11 | Weblog
[Today's Paper] from [The New York Times]

Arms Sent by U.S. May Be Falling Into Taliban Hands

By C. J. CHIVERS
Published: May 19, 2009

CONTINUED FROM news.notes20090520e

“The mixed ammo could suggest battlefield losses; it could suggest captured ammo,” he said. He added, however, that he did not want to appear defensive and that accountability of Afghan arms and munitions was of “highest priority.”

“The emphasis from our perspective is on accountability of all logistics property,” he said. Leakage of Pentagon-supplied armaments to insurgents is an “absolutely worst-case scenario,” he said, adding, “We want to guard against the exact scenario you laid out.”

news.notes20090520g

2009-05-20 16:12:41 | Weblog
[Today's Newspaper] fom [The Washington Post]

Senate Demands Plan for Detainees
Democrats Scrap Funding to Close Guantanamo Bay

By Shailagh Murray
Washington Post Staff Writer
Wednesday, May 20, 2009

Under pressure from Republicans and concerned about the politics of relocating terrorism suspects to U.S. soil, Senate Democrats rejected President Obama's request for funding to close the Guantanamo Bay prison and vowed to withhold federal dollars until the president decides the fate of the facility's 240 detainees.

The decision represents a potentially serious setback for Obama, who as a candidate vowed to close Guantanamo and who signed an executive order beginning the process soon after he took office.

Obama had asked Congress for $80 million to close the facility, located on a U.S. military base in Cuba, by early 2010. Many Democrats see Guantanamo as an affront to the U.S. legal system and a symbol of Bush-era detainee policies, but they are increasingly wary about the next step, as yet undefined by Obama, of relocating the terrorism suspects who are detained at the site.

As recently as last week, Senate Democrats had hoped to preserve a portion of Obama's Guantanamo funding request. But their resolve crumbled in the face of a concerted Republican campaign warning of dire consequences if some detainees ended up in prisons or other facilities in the United States, a possibility that Defense Secretary Robert M. Gates has acknowledged.

"U.S. jails are typically for U.S. citizens," said Senate Minority Leader Mitch McConnell (R-Ky.). "These are foreign terrorists, detained on the battlefield in the war on terror."

Obama will clarify and expand on his Guantanamo plans in a speech tomorrow, senior administration officials said. But his remarks will come too late to restore the funding, which he had sought as part of the emergency Iraq and Afghanistan spending bill that is moving through the Senate. The bill cleared the House last week without funding for the Guantanamo shutdown.

"We agree with Congress that before resources, that they should receive a more detailed plan," White House spokesman Robert Gibbs told reporters yesterday. He said Obama will address tomorrow whether the detainees would be transferred to U.S. prisons, sent to other countries or a combination of both.

Once those details are resolved, Gibbs added, "the president and Congress will work together on a timeline for a renewed request for whatever resources are needed." Asked whether Obama's closing date would be pushed back, he said, "There's been no change in the date from the executive order."

But prominent Democrats warned that Obama has little room to maneuver. Senate Majority Leader Harry M. Reid (D-Nev.) told reporters yesterday that "Democrats under no circumstances will move forward without a comprehensive, responsible plan from the president." He added, "We will never allow terrorists to be released into the United States."

Reid said the Senate will make sure that any final plan includes a prohibition on the transfer of detainees to U.S. prisons. "Can't put them in prison unless you release them," he said.

To forestall a showdown with Republicans, Democratic leaders unveiled an amendment to the war funding bill that "explicitly bars" using proceeds from the legislation "to transfer, release or incarcerate any of the Guantanamo detainees in the United States."

Republicans said they will continue to press for even tougher language aimed at forcing the military to keep the Guantanamo site in operation. An amendment sponsored by Sen. James M. Inhofe (R-Okla.) would take the additional step of ensuring that no funds in the spending bill could be used to improve U.S. detention facilities for the possible housing of Guantanamo prisoners. "If we do that, since we know there's no place else, I really believe we'll be able to keep a resource open," Inhofe said.

After Obama ordered the site closed, a Justice Department task force embarked on assessments of the 240 remaining detainees, many of them captured in Afghanistan. Thirty detainees have been determined to be transferable by the task force, but with the exception of one each accepted by Britain and France, the Justice Department has been unable to find countries willing to take them in.

Diplomatic sources said yesterday that any ban on resettling detainees in the United States would probably undermine the State Department's efforts to get European countries to accept those cleared for release. European officials have told their American counterparts that they are unwilling to assume a burden that the United States will not share.

Senate Democrats sought last week to include an initial $50 million in funding for Guantanamo's closure, but they quickly retreated in the face of the Republican outcry.

With few alternatives, some are even echoing the GOP assertion that the state-of-the-art facility should remain open. "We spent hundreds of millions of dollars building an appropriate facility with all security precautions on Guantanamo to try these cases," Sen. James Webb (D-Va.) said Sunday on ABC News's "This Week." Webb added, "I do not believe they should be tried in the United States."

McConnell taunted Democrats yesterday for their rapid capitulation on Guantanamo. "I understand our friends on the other side of the aisle are -- shall I say? -- moving in our direction rapidly."

But Reid said the issue will soon be revisited, noting that the war funding bill is a short-term patch that would be in effect only until the end of the current fiscal year. "We have a lot of other pieces of legislation moving through here in the next couple of months, and we can take care of it then," Reid said. "We're only talking about four months. October 1st, that's how long this bill has to go."

news.notes20090520h

2009-05-20 09:34:15 | Weblog
[Today's Papers] from [Slate Magazine]

Arming the Enemy in Afghanistan

By Daniel Politi
Posted Wednesday, May 20, 2009, at 6:33 AM ET

The New York Times leads with a look at how Afghan insurgents may be using ammunition that was intended for government forces. The NYT's C.J. Chivers was allowed to examine weapons collected from dead insurgents and found that from a total of 30 rifle magazines, "at least 17 contained cartridges, or rounds, identical to ammunition the United States had provided to Afghan government forces." This could mean that Afghan forces are helping arm the insurgents, either inadvertently or through corrupt networks. USA Today leads with a report prepared by consultants to the U.S. Agency for International Development that states corruption in the Afghan political and legal systems has become systemic. The Obama administration wants to increase the amount of aid that is funneled through the Afghan government but the "pervasive" and "entrenched" corruption makes that a difficult proposition.

The Washington Post and the Wall Street Journal 's world-wide newsbox lead with Senate Democrats rejecting a request for funding to close the detention center in Guantanamo. In a reversal, Democratic leaders said they would block President Obama's funding request until he releases a detailed plan for handling the detainees. In addition to stripping the $80 million from the war-spending bill, Democrats also wrote an amendment into the legislation that "explicitly bars" using funds to transfer detainees into the United States. The Los Angeles Times leads with California voters largely voting down a series of ballot measures that Gov. Arnold Schwarzenegger had said were the state's best hope for dealing with its current deficit crisis. Turnout was weak, and voters approved only one of the measures, which bans salary hikes for politicians during deficit years. California's leaders will begin a series of meetings today to work out what parts of the budget should be cut. In an analysis, Michael Finnegan writes that yesterday it became clear how voters "share blame for the political dysfunction that has brought California to the brink of insolvency." Confronted with a large deficit, Californians chose to neither increase taxes nor reduce spending, showing how "voters' fickle commands, one proposition at a time, are a top contributor to paralysis in Sacramento."

If insurgents in Afghanistan are indeed getting munitions from the Afghan forces, it wouldn't exactly be surprising. The Government Accountability Office recently criticized the United States for failing to keep track of rifles it issued to Afghan troops. But while steps have been taken to account for arms, there isn't a system to keep track of ammunition. The ammunition found on the insurgents "can come from dozens of potential suppliers" so "the probability that the Taliban and the Pentagon were sharing identical supply sources was small." But it does suggest that insurgents somehow are getting their hands on munitions meant to be used by government forces. Experts say it's likely that people with access to the ammunition either sold it for profit or out of support for the insurgents. But military officials also say it's important not to discount the possibility that the insurgents got a hold of these munitions in the battlefield.

Senate Democrats were optimistic that they could at least keep a fraction of the funds that Obama requested to close Guantanamo in the war-spending bill. But Republicans have seized on the issue, warning that relocating Guantanamo detainees into the United States, even if it is in maximum security prisons, would be dangerous. This development not only raises the possibility that Obama's order to close the detention camp by Jan 22., 2010 could be delayed, but is also likely to complicate efforts to get allied nations to take on some of the detainees that have been cleared for release. European leaders have made it abundantly clear that they'd be reluctant to accept any of the detainees unless the United States did as well. There seem to be such few options for the detainees that some Democrats are even echoing Republicans and saying that perhaps Guantanamo should remain open. Obama will address his plans for the detainees tomorrow.

Almost all the papers front the Senate's 90-5 vote in favor of a bill that would impose new restrictions on the credit card industry. The bill, which could reach Obama's desk by Memorial Day, "will force the card industry to reinvent itself and consumers to rethink the way they use plastic," notes the Post. The LAT describes it as "one of this year's few bipartisan success stories." The measure would restrict the ability of credit card issuers to increase interest rates and fees whenever they want to. Companies would have to give advance notice before any rate increases, and the measure would make it more difficult for anyone under 21 from getting a card. As part of a compromise with Republicans, senators agreed to include an amendment to the legislation that would allow visitors to national parks to carry handguns. The House and Senate still have to reconcile their own versions of the bill, but everyone expects that to be done quickly given the current climate of dissatisfaction with the banking industry.

Credit card companies warned that the bill would translate into higher fees for everyone, as well as a reduction in available credit. Executives also once again warned that they'd have to cut perks for their best customers. In a front-page analysis, the NYT's Ron Lieber outlines the main changes contained in the legislation and predicts that "this talk is just so much saber-rattling," noting that those who spend a lot on their cards help the companies make money, even if they don't go into debt.

The WP off-leads, and the WSJ goes inside with, word that the Obama administration is currently in talks to create a new regulatory agency to protect consumers of a wide range of financial products, such as mortgages and hedge funds. The plan is still in the works but the new regulator could work to make sure that providers of financial services aren't deceiving ordinary consumers. Currently that responsibility falls to a variety of different agencies that often don't see protecting individual consumers as a priority. The WSJ says the administration is expected to release its plan to Congress in the next two to three weeks.

The NYT goes inside with an update on the situation in Pakistan, where the army is approaching the main city in Swat, Mingora. Most of the area's residents have left and the military has prohibited anyone, including journalists and Red Cross officials, from entering, which means all the information about what's going on in the area that was once a tourist paradise comes from those who have fled. And they describe scenes of devastation, where stray dogs are eating decomposing corpses. More than 1 million have fled the area, "in one of the biggest exoduses of internally displaced people in recent years," notes the NYT. Many say the fight for Mingora will be an important test for a military that is not used to urban warfare. So far, the military has concentrated on clearing the areas around the city. ""They will leave Mingora until last," said a former interior minister. "You have to clear each and every house, and the Taliban are going to give their own pitched battle."

USAT reports on a new large-scale study of baby-naming trends that found parents are increasingly picking unusual names for their children. "Being unique is now popular," said one of the study's authors. While in 1955, 32 percent of boys had one of the year's 10 most popular names, in 2007 that number was down to 9 percent.

news.notes20090520i

2009-05-20 08:14:37 | Weblog
[News & Politics] from [Double X, Slate's magazine for women]

To Force Treatment or Not To Force Treatment?

Posted: May 19, 2009 at 5:30 PM
By Torie Bosch

At what age can a child refuse medical treatment—and do his reasons for doing so matter? Daniel Hauser, a 13-year-old Minnesota boy suffering from Hodgkin's lymphoma, went through one course of chemo before he and his parents decided to reject standard cancer treatment in favor of alternative medicine. They've said that their practices reflect their religious beliefs as followers of the Nemenhah Band, a group led by Phillip "Cloudpiler" Landis that encourages natural remedies. (They also attend a Catholic church.) Last week, a judge ruled that Daniel's parents were "medically neglecting" him by refusing to continue to treat him using conventional medicine. The family was supposed to appear in court today to discuss the results of a chest X-ray and determine a course of treatment, but Daniel and his mother didn't appear. (It sounds all too close to Miriam's Well by Lois Ruby, a YA novel I cherished as a young teen, but I doubt it'll have the same happy ending.) Now an arrest warrant has been issued for Colleen Hauser. His father says that he hasn't seen them since last night and doesn't now where they are—convenient. He's gravely ill and recently told a doctor that he had pain that was "10 out of 10" in his chest, but that pain apparently hasn't convinced him to submit to an oncologist's will. He even threatened to punch and kick any doctors who tried to treat him.

It sounds as though Daniel is simply trying to adhere to his faith, but he might just be scared to undergo treatment. The blogger at Respectful Insolence, a scientist/surgeon, asked last week whether the Hausers are just using religion as an excuse. Daniel underwent one course of chemo—the first of a recommended six—in February, and he and his family were alarmed by the complications; he is also reportedly haunted by the fact that an aunt died while undergoing chemo when he was 5.

If this is a case of rejecting the side effects rather than the idea of medical treatment, it's tough to tell who led whom down this path—did Daniel himself balk first, or did his parents? Thirteen seems far too young to be able to decide to treat or not to treat, and Daniel himself reportedly can't read and has demonstrated poor understanding of his illness. That makes it a pretty open-and-shut case, as far as I can tell—find the kid, if child protective services can find him before it's too late, and make him undergo if his cancer is still treatable. (Do the legal eagles among us think differently?)

I can't help but wonder, though, how this would play out if it were a highly mature 17-year-old who rejected faith healing, alternative medicine, and conventional treatment. If he wanted to forgo treatment in favor of dying just because he hated chemo, would we force him?

news.notes20090520j

2009-05-20 07:20:17 | Weblog
[Today's News] from [The Guardian]

Gordon Brown: many MPs will be suspended from Labour over expenses
PM promises new system of allowances will lead to clean-up of parliament

Patrick Wintour, Andrew Sparrow and agencies
guardian.co.uk, Wednesday 20 May 2009 11.52 BST
Article history

Gordon Brown said today that there would be "many cases" where MPs would be suspended from the Labour party as a result of his crackdown on the abuse of parliamentary expenses.

Speaking after one of the most momentous days in parliamentary history, which saw the resignation of the Speaker, Michael Martin, the prime minister again apologised to the public for what had happened and promised that a new system would lead to a "clean-up".

Harriet Harman, the leader of the Commons, will announce further details of reform measures unveiled yesterday in a statement to MPs today after prime minister's questions.

In an interview on GMTV this morning, Brown said that he was "angry and appalled" by what had been happening at Westminster. "If my father, my parents, thought that these things were going on in the House of Commons, they would be utterly appalled," he said.

Yesterday the Labour party announced plans that could lead to MPs who have brought the party into disrepute being deselected as parliamentary candidates. Brown told GMTV that this result in many Labour MPs being banned from standing at the election.

"There are many cases where people will be suspended and people will have to stand down and not be candidates at the next election," he said.

He also raised fresh doubts about the prospects of Hazel Blears, the communities secretary, surviving in cabinet. Blears did not break any parliamentary rules, but she agreed to pay £13,332 to HM Revenue and Customs after it was revealed that she had avoided capital gains tax by describing a home funded by parliamentary expenses as her main home.

"Hazel didn't break any rule or law. But what she did was unacceptable. She came to me, we talked about it and she paid back the money," Brown said.

Pressed on the issue of whether Blears ought to be sacked, Brown said: "I have already suspended – I am the only party leader to have done so – I have suspended two members of parliament from the parliamentary Labour party. I have told a minister to step down because of difficulties and irregularities that have got to be investigated in his affairs.

"If it became necessary to do so for other people, I will not resile from doing so. We will take all the action that is necessary."

But a few hours later Downing Street hinted that Brown's comments were not intended to suggest that Blears's position was under threat.

The prime minister's spokesman said that Brown had full confidence in her, that she was doing "a good job" as communities secretary and had recently delivered "a good presentation" to cabinet and that she had been the first person to acknowledge that there had been a problem with the unpaid capital gains tax.

Yesterday, within hours of Martin giving up the fight to retain his post as the most senior commoner in the land, Brown ­outlined plans to dismantle what he described as the "gentlemen's club" of parliament by handing power for the oversight of every aspect of MPs' pay, expenses and pensions to a new statutory independent regulator. At a Downing Street press conference, the prime minister said Westminster "can no longer operate as a 19th-century institution where the members make up the rules, and operate them among themselves".

He said he would be willing to pass ­legislation to end self-regulation ­immediately, on a cross-party basis, so that MPs were no longer in the invidious position of being "judge and jury of their own pay and rations".

Later Martin announced an immediate interim ban on MPs claiming for furniture and the "flipping" of second homes, two of the most incendiary practices to emerge from the expenses scandal.

His interim reforms also include:

• MPs living together must designate the same home as their main residence.

• A cap on mortgage interest payments will be set at £1,250 a month.

• MPs must be "completely open" on whether they have claimed additional costs allowance on a property as a second home and are liable for capital gains tax.

• All expenses claims must be published online quarterly.

• Only rent, hotel bills, overnight subsistence, mortgage interest, council tax, utility charges and insurance will be allowed.

• Claims that are the subject of any doubts will be refused with no opportunity of appeal.

news.notes20090520k

2009-05-20 06:17:25 | Weblog
[Today's Headlines] from [REUTRS]

Obama economic panel moves into the spotlight

Wed May 20, 2009 9:07am EDT
By Caren Bohan

WASHINGTON (Reuters) - A high-level panel of experts that has been helping to shape President Barack Obama's response to the economic crisis will step into the public view on Wednesday at a meeting to discuss energy issues and job creation.

Obama announced the creation of the 16-member Economic Recovery Advisory Board, led by former Federal Reserve Chairman Paul Volcker, in February, but its work had been entirely behind-the-scenes.

Wednesday's meeting, scheduled for 10:00 a.m., will be open to the media and carried via a live video stream on the White House website. It is the first of what are expected to be quarterly meetings by the board.

Topping the meeting agenda is Obama's proposal to create "green jobs" in sectors of the economy aimed at developing cleaner energy sources.

Volcker's role in advising Obama is of keen interest to many on Wall Street, where the 81-year-old former central banker remains a towering figure known for breaking the back of runaway inflation during the 1980s.

Volcker has continued to weigh in on public policy matters since leaving the Fed in 1987. He was a key adviser to Obama during the campaign and speaks frequently with White House officials on financial-regulatory and other issues.

But he has vented some frustration to associates about his level of access within the White House economic power center.

Obama's inner circle on economic policy consists of National Economic Council director Lawrence Summers, a former Treasury secretary; current Treasury Secretary Timothy Geithner; Christina Romer, chairwoman of the Council of Economic Advisers; and Austan Goolsbee, a longtime Obama adviser who sits on the Council of Economic Advisers and is also chief of staff on the Volcker economic recovery panel.

'TEAM OF RIVALS'

Some refer to the group as "team of rivals" because it consists of high-powered people who bring varying perspectives and personal styles.

In an interview with the New York Times magazine published this month, Obama said his economic team is marked by "an appreciation of complexity."

He described Volcker as "somebody who has enormous influence over my thinking" and someone who can provide "counterbalance" in discussions.

The economic recovery panel, which includes Democrats and Republicans and people from business, academia, public policy and labor union backgrounds, is intended to give Obama some outside perspective on economic issues.

"The purpose of the board is not to work inside the White House, but to bring a diverse set of perspectives and voices from different parts of the country and different sectors of the economy to bear in the formulation and evaluation of economic policy," White House spokeswoman Jen Psaki said.

She said the members of the panel have been conducting their own analysis to prepare for the discussion of energy issues.

On Tuesday, Obama ordered the struggling auto industry to make more fuel-efficient cars under tough new standards to cut emissions and increase gas mileage.

The president is also seeking action on Capitol Hill on a climate-change bill aimed at reducing carbon dioxide and other pollutants. The bill would establish a "cap-and-trade" system that would gradually reduce the amount of greenhouse gases industrial companies could emit.


Indonesia says 98 killed in military plane crash

Wed May 20, 2009 7:45am EDT
By Heri Retnowati

MAGETAN, Indonesia (Reuters) - An Indonesian military transport plane carrying 110 passengers and crew crashed and burst into flames in East Java on Wednesday, killing at least 98 people on board and on the ground, officials said.

The C-130 Hercules aircraft plowed into several houses on the ground, scattering debris and sending flames and billowing smoke into the air, in the latest of a series of air disasters in a country with a poor air safety record.

Air force spokesman Bambang Soelistyo said that 98 people had been killed, including two on the ground, while there were 15 survivors.

"Some victims are still at the crash site," said Soelistyo. He said the plane, with 11 crew and 99 passengers, had crashed about 6.5 km (4 miles) from the Iswahyudi air force base in East Java while preparing to land.

National military spokesman Sagom Tamboen told a news conference the aircraft had been in good condition and the weather was clear before the crash. But army chief Djoko Santoso later said there had been fog around the time of the crash.

The plane had been on a regular flight from Jakarta to the Iswahyudi air base in Magetan to transport military personnel and their families. It had been due to fly on to Sulawesi and Papua.

Television footage from the scene showed people desperately trying to extinguish flames with buckets of water.

"I heard a thunderous sound, like a car roaring past. I looked out and a huge plane had crashed into a clump of bamboo. The left wing landed in front of my house," eyewitness Sutrisno, who like many Indonesians uses one name, told Reuters.

An official at the scene, who asked not to be named, said there were still three bodies at the site yet to be evacuated.

"About 15 meters (50 ft) of the tail is still intact, but the body to the front is broken and burned," said Suwardi, a local official in Magetan, who said the crash took place at about 6:30 a.m. (7:30 p.m. EDT on Tuesday), between Madiun and Magetan, about 150 km (90 miles) southwest of Indonesia's second-biggest city of Surabaya.

"THE PLANE KEPT NOSEDIVING"

Some relatives of the victims were sobbing and praying at the air force hospital in Madiun, where there were around 18 bodies.

Agus Yulianto, an eyewitness, told the Kompas newspaper website (www.kompas.com) the plane appeared to tilt in the air and objects rained down from the aircraft before it crashed.

"Some things were falling, like bolts and axle nuts from the plane. The plane kept nosediving and finally crashed on two houses," said Yulianto.

Purwanto, a survivor of the disaster, told Metro TV that the plane crashed and then later exploded. He was speaking from a hospital bed with his head heavily bandaged.

President Susilo Bambang Yudhoyono urged people not to jump to conclusions before an investigation was completed.

"Don't quickly decide this accident is because of this or that, whether it's the machine, the weather, human error or another factor," Yudhoyono told a business forum in Jakarta.

Yudhoyono said there should be extra measures to ensure flight safety had the highest priority.

Separately, Defense Minister Juwono Sudarsono told reporters that maintenance should be 20 to 25 percent of the military budget but was below 10 percent due to limited resources.

Former air force chief Chappy Hakim told Reuters the plane that crashed was U.S.-made and built in the 1980s.

Indonesia has a poor record of air safety and maintenance and has suffered a string of accidents in recent years affecting both commercial and military aircraft.

Last month, 24 military personnel and crew died after a military Fokker 28 aircraft carrying parachute trainees crashed into a hangar at a base in West Java.

In recent years there have also been a series of deadly crashes involving commercial passenger planes. Indonesian airlines are currently banned from European Union airspace over safety concerns.

news.notes20090520l

2009-05-20 05:27:52 | Weblog
[Today's Headlines] from [REUTRS]

Wall Street rises on banks

Wed May 20, 2009 10:31am EDT
By Leah Schnurr

NEW YORK (Reuters) - Stocks rose on Wednesday after a successful share offering from Bank of America boosted optimism about the financial sector, and McDonald's and Procter & Gamble jumped after bullish analyst comments.

Bank of America Corp (BAC.N) surged 8.1 percent to $12.15 after it raised $13.47 billion through a sale of its shares as it worked to meet capital-raising requirements after a government stress test.

McDonald's Corp (MCD.N) was the Dow's biggest boost, up 4 percent at $55.96 after Deutsche Bank upgraded the fast-food chain to "buy," while Procter & Gamble Co (PG.N) climbed 2.6 percent to $54.34 after Barclays raised its rating to "overweight" from 'equal weight."

Energy shares also advanced as U.S. crude oil futures rose above $61 a barrel to touch a new six-month high amid bullish inventory data and a spate of U.S. refinery accidents. Exxon Mobil Corp (XOM.N) rose less than 1 percent to $71.03.

Analysts said the recent sharp stocks rally from bear market lows in March could have more to go if investors who missed the run-up jump in.

"One of the differences in this market since early March is that pullbacks, whether they've been intraday or over the course of several days, have been buying opportunities compared to the previous six months where the rallies were selling opportunities," said Henry Smith, chief investment officer at Haverford Trust Co in Philadelphia.

The Dow Jones industrial average .DJI rose 100.19 points, or 1.18 percent, to 8,575.04. The Standard & Poor's 500 Index .SPX gained 14.15 points, or 1.56 percent, to 922.28. The Nasdaq Composite Index .IXIC climbed 25.72 points, or 1.48 percent, to 1,760.26.

The S&P 500 is up more than 36 percent from the 12-year low in early March as investors became increasingly optimistic that the economy and financial system was stabilizing. Analysts noted that data will need to start showing firmer signs of improvement to sustain the positive sentiment.

Minutes from the U.S. Federal Reserve's policy-setting meeting are to be released at 2:00 p.m. EDT. Investors will watch for more clues on the economy.

No. 2 U.S. discount retailer Target Corp (TGT.N) jumped 6 percent to $44.48 after its quarterly profit beat expectations as it tightened inventory and expenses.

Shares of Deere & Co (DE.N) rose 7.5 percent to $47.11, even after it reported lower quarterly profit and cut its full-year earnings forecast.

On the downside, Hewlett-Packard Co (HPQ.N), the world's top personal computer maker, was the Dow's biggest drag, down 4.7 percent at $34.88. On Tuesday, it gave a disappointing revenue forecast for the fiscal year and said it will cut 2 percent of its workforce.


Bank of America raises $13.47 billion in share sale

Wed May 20, 2009 9:41am EDT

NEW YORK (Reuters) - Bank of America Corp raised $13.47 billion through a share sale, marking a major step toward meeting the U.S. government's requirements for capital-raising following the recent "stress testing" of the bank.

Including proceeds from the sale of part of its stake in China Construction Bank Corp for $7.3 billion, the bank is now more than half-way toward plugging a $33.9 billion capital shortfall identified by the government.

The bank has issued 1.25 billion shares at an average price of $10.77 each since last Friday, it said in a statement late on Tuesday. Earlier in the day, a source familiar with the transaction said the bank had sold 800 million shares at $10 each on Tuesday alone.

The average price of $10.77 is 4.3 percent below Tuesday's closing price of $11.25. Bank of America shares rose two cents in after-hours trade to $11.27.

The offering by Bank of America comes on the heels of smaller share issuances by other banks ordered to raise capital. This includes offerings of $8.6 billion by Wells Fargo & Co and $4 billion by Morgan Stanley.

As part of Bank of America's stock sale, which brought in gross proceeds of about $13.47 billion, the bank sold 800 million shares at $10 each on Tuesday alone, a person familiar with the transaction earlier told Reuters.

The person was not authorized to speak because terms of the sale are not public.

"We're pleased to have this portion of our capital plan completed," Chief Financial Officer Joe Price said in a statement. "This strengthens and diversifies our capital structure."

Regulators told Chief Executive Kenneth Lewis the bank needed to bolster its finances following a government "stress test" of its ability to handle a deep recession.

Ten of the 19 large U.S. banks that underwent such tests were told this month to raise capital, with Bank of America's $33.9 billion shortfall being by far the largest.

Several banks found to have no capital needs sold stock this month to position themselves to repay taxpayer money taken from the federal Troubled Asset Relief Program.

Bank of America has taken $45 billion of TARP money, including $20 billion in a bailout to help it absorb Merrill Lynch & Co, which it bought on January 1.

The Charlotte, North Carolina-based bank has said it hopes to repay its TARP money within the next couple of years, and in any event before Lewis retires. He has suggested he would like to retire by the time he turns 65, which would be in 2012.

The bank has said it plans to raise roughly $17 billion more from asset sales and other means. Last week, it sold part of its stake in China Construction Bank Corp for $7.3 billion.


Hewlett-Packard outlook disappoints

Tue May 19, 2009 7:42pm EDT
By Gabriel Madway

NEW YORK (Reuters) - Hewlett-Packard Co gave a disappointing outlook for full-year revenue and said it will lay off another 2 percent of its workforce as consumers and businesses cut spending on computers, printers and services, sending its shares down about 5 percent.

The mew round of layoffs -- which total roughly 6,400 jobs -- announced on Tuesday are on top of previously announced cuts from integrating the operations of IT services company EDS, which HP acquired last year.

HP said the job cuts will come in its product segments, such as PCs and printers. The reductions will happen over the next 12 months.

HP, which vies with smaller rivals Dell Inc and Acer Inc in a depressed global PC market, also expects fiscal year revenue to slide 4 percent to 5 percent compared with a previously forecast of 2 percent to 5 percent, offering a more pessimistic view of 2009.

The company's services business was the largest by revenue in the quarter, boosted by the EDS buy. PC revenue fell 19 percent, imaging and printing revenue dropped 23 percent and storage and server sales sank 28 percent.

Analysts said the company is doing a good job controlling costs in a difficult environment, but said investors may be spooked in the absence of more upbeat comments from Chief Executive Mark Hurd.

Although Hurd did point to pockets of improvement, he told Reuters in an interview that in terms of demand: "We're expecting roughly more of the same."

Frost & Sullivan analyst Ron Gruia said Hurd is approaching the demand question very carefully.

"He does show a little bit more cautiousness and maybe it's better to be a bit more cautious in this environment."

BELLWETHER PAIN

The shares of the technology bellwether, which some analysts deem a safe haven in the downturn because of its diverse portfolio, fell as much as 5 percent in after-hours trading.

HP's stock is roughly flat for the year, compared with a 25 percent rise for International Business Machines Corp and a rise of more than 10 percent for Dell.

HP reported a net profit of $1.7 billion, or 70 cents a share, in the fiscal second quarter ended April 30, down from $2.1 billion, or 80 cents a share, a year ago.

Excluding certain restructuring and acquisition-related items, HP posted a profit of 86 cents a share, matching analysts' average forecast, according to Reuters Estimates.

Revenue slipped 3 percent to $27.4 billion, a whisker off Wall Street's forecast of $27.5 billion.

For the current quarter, HP forecast earnings, excluding items of 88 cents to 90 cents a share, with revenue flat to down 2 percent sequentially.

Wall Street is forecasting a profit of 89 cents a share on revenue of $27.5 billion.

In February, HP cut its full-year outlook after quarterly revenue missed expectations.

PROGNOSTICATIONS TWEAKED

For fiscal 2009, the company still expects an adjusted profit of $3.76 to $3.88 a share, but now expects revenue to fall 4 percent to 5 percent.

HP is the second-largest IT services company and No. 2 maker of servers, trailing IBM in both.

The company is the top-selling PC maker and its business is less dependent on corporate customers than No. 2 player Dell.

According to research group IDC, HP managed to boost its market share to 20.5 percent in the first calendar quarter.

Some industry executives, including from Intel Corp and graphics chip maker Nvidia Corp, say overall tech sector demand has bottomed out and expect sales to pick up.

But this week, executives from other IT players, including microchip maker Advanced Micro Devices Inc and software services provider Sybase Inc offered dour assessments of the economic environment, warning against betting on a tech sector recovery too soon.

The shares of Palo Alto, California-based HP fell about 5 percent to $34.72 from a regular close of $36.58 on the New York Stock Exchange.