Political India: Engaging America

From The Hindu

Indian companies operating in the United States make “contributions to social security that they never see at any point,” Sachin Pilot, Minister of State for Communications and Information Technology, said here on Tuesday.

Emphasising the contribution of Indian companies to the U.S. economy at a time of serious unemployment, Mr. Pilot said, “It will be the endeavour of Indian companies to have more job opportunities for U.S. citizens here… It will be in both our interests to solve this [unemployment] problem.”

Speaking at a gathering of business leaders on Tuesday Mr. Pilot said that many Indian companies, especially in IT, that have “set up shop here, are employing a lot of Americans and are more American than Indian.”

At the event, hosted by the U.S.-India Business Council, Mr. Pilot also described the opportunities that India presented in the field of IT not only for both services and manufacturing. He further touched upon the Indian government’s initiatives to provide broadband connectivity to villages in India so as to improve rural populations’ access to healthcare, education and other services.

During his visit to the U.S. the Minister also met with senior officials in the White House and in the U.S. Department of Commerce to discuss ways to take the India-U.S. economic and technological collaboration forward. Areas of discussion included healthcare, cyber security and cyber terrorism.

Labels: Communications and Information Technology, Indian companies, Sachin Pilot, U.S.

From The Hindu

In a media interview, Barbara McQuade, U.S. Attorney for the eastern district of Michigan, said that federal authorities decided to arrest members of a group upon discovery of their plan for an exercise in April that might have included violence.

“They talked about doing a covert reconnaissance exercise,” Ms. McQuade said, adding that the group said that if they came upon anyone from the public or law enforcement who kind of stumbled upon them in the midst of this exercise, they were prepared to kill them. That triggered the Federal Bureau of Investigation to act.

Spelling out some of the details of the militia plot, Ms. McQuade said they planned to call 911, report a fake emergency and then kill the police officer who responded. “They then planned to kill more police by attacking the funeral procession using improvised explosive devices,” she was reported as saying.

Ms. McQuade however emphasised to CNN that the arrests were not an attack on militia groups in general. “In Michigan, we have militia groups that are peaceful, that are exercising their right to bear arms,” she said, adding "We have no problem with those groups.”

Labels: Barbara McQuade, Militia arrest, U.S.

From The Hindu

United States President Barack Obama on Wednesday said that he believed the United States and the international community could have United Nations sanctions against Iran “within weeks,” over Iran’s alleged nuclear development programme.

Speaking at a press conference with visiting French President Nicolas Sarkozy, Mr. Obama said that the U.S. had made clear that there would be a time limit to the engagement-based approach, and if progress was not evident by the end of the year, it would be time to move forwards on that sanctions track.

“I am not interested in waiting months for a sanctions regime to be in place. I am interested in seeing that regime in place in weeks, and we are working diligently with our international partners,” Mr. Obama said, adding that the U.S. would “move forcefully on a UN sanctions regime.”

However he acknowledged that support for sanctions against Iran might not be as forthcoming as he’d hoped: “Do we have unanimity [regarding the need for sanctions] in the international community? Not yet, and that’s something we have to work on.”

The President also conceded that conflict in the Middle East as a consequence of Iran’s actions could have a “huge destabilising effect” in terms of the world economy, which was just coming out of a very deep recession.

In an indication of U.S. concern over the risk of a spike in global oil prices Mr. Obama said, “Let’s be honest, Iran is an oil producer and a lot of countries around the world, regardless of Iran’s offences, are thinking that their commercial interests are more important to them than these long term geo-political interests.”

Labels: Barack Obama, Iran, Sarkozy, U.S.

From The Hindu

Nine members of a presumed Christian militia group called Hutaree (which the group says means “Christian warrior”) based in Michigan were indicted by a federal grand jury in Detroit on charges of seditious conspiracy, the Federal Bureau of Investigation announced on Wednesday.

The group was further charged with attempted use of weapons of mass destruction, teaching the use of explosive materials, and possessing a firearm during a crime of violence. According to reports, eight members of the group, including one woman, were arrested over the weekend and a ninth individual remains at large.

A statement by the FBI said that the Hutaree planned to kill an unidentified member of local law enforcement and then attack the law enforcement officers who would have gathered for the funeral. The agency said that according to the plan, the Hutaree would attack law enforcement vehicles during the funeral procession with improvised explosive devices with explosively formed projectiles,

The FBI further said that the group’s basic aim was to oppose by force the authority of the United States government; the Hutaree members view local, state, and federal law enforcement as the “brotherhood,” their enemy, and have been preparing to engage them in armed conflict.

In addition to the planned attack on law enforcement officials, it was further alleged that David Brian Stone, the Hutaree’s leader, obtained information about explosive devices over the Internet and e-mailed diagrams of such devices to a person he believed capable of manufacturing the devices. The FBI statement said that Stone then had his son, Joshua Matthew Stone, and others gather materials necessary for the manufacturing of such devices.

Andrew Arena, FBI Special Agent in Charge, said, “This is an example of radical and extremist fringe groups which can be found throughout our society. The FBI takes such extremist groups seriously, especially those who would target innocent citizens and the law enforcement officers who protect the citizens of the United States.”

According to reports the Hutaree describes its doctrine as based on the testimony of Jesus and warns of a looming battle with the antichrist. “The Hutaree will one day see its enemy and meet him on the battlefield, if so God wills it,” the group was reported as saying in its literature.

Labels: christian extremism, Christian militia, Christian terror group, Hutaree, religious extremism

From The Hindu

Amidst signs of better performance by financial services companies, the United States Treasury on Monday announced that it plans to dispose of its 7.7 billion shares (27 percent stake) in banking major Citigroup Inc.. It will sell shares into the market through various means “in an orderly and measured fashion.”

In a statement the Treasury on Monday said it would sell off its common stock in Citigroup over the course of 2010 and subject to market conditions. At its most recent closing price the sale would fetch Citigroup anywhere between $7.5 billion to $8 billion in profits to the American taxpayer, a potential political victory for President Obama.

According to reports the government planned to initiate the sale of its Citigroup assets last year, but when the bank’s share price dropped below $3.20 in December it delayed those plans amid fears that it might lose money on the investment.

The Treasury received these shares of common stock following a June 2009 Exchange Agreement with Citigroup. The Treasury explained that this agreement provided for the exchange into common shares of the preferred stock that Treasury purchased in connection with Citigroup's participation in the Capital Purchase Program.

Morgan Stanley has been engaged as the Treasury’s capital markets advisor in connection with its Citigroup position. The manner, amount and timing of the stock sales would be “dependent upon a number of factors,” the Treasury statement noted.

However this planned disposition of common stock would not affect the Treasury's holdings of Citigroup trust preferred securities or warrants for its common stock.

Citigroup, one of the worst hit of high street banks in the U.S., posted more than $100 billion in write-downs over the last two years. Following these catastrophic losses Citigroup received $45bn in bailout funds via the Troubled Asset Relief Programme (TARP). Of this the bank repaid $20bn last December.

Earlier this month, Vikram Pandit CEO of Citigroup said before a Congressional Oversight Panel that “Citi owes a large debt of gratitude to American taxpayers… everything we have been doing is to ensure that Citi never again needs the assistance of the American taxpayer.”

However he added that as a result of the government's response to the crisis the bank was now “in a far different and much healthier position.

Labels: Citigroup, United States Treasury, Vikram Pandit

From The Hindu, with PTI

Following the completion of negotiations surrounding the question of reprocessing of spent nuclear fuel, the United States on Wednesday said it considers the U.S.-India civil nuclear agreement a “reflection of the deepening of our relationship.”

At a press briefing at the State Department, Assistant Secretary Philip Crowley said the 123 Agreement is in the interest of both the U.S. and India, and has broader impact as well. “It was an agreement that required some follow-up, some detail… and some brilliant diplomacy,” Mr. Crowley said.

On the implications for a “broader, deeper, and expanded” U.S.-India relationship, he said, “I think anytime that you not only reach an agreement but then can see it begin to be enacted, that develops trust and confidence on both sides.”

He added that to conclude the negotiations on reprocessing, the administration had advised Congress on the deal and likewise, the Indian Government worked through the issues.

PTI reports:

Secretary for Arms Control and International Security, Ellen Tauscher, pointed to the significant and prized relationship between the two countries.

“We’re very happy to see that this agreement is moving forward, and the reprocessing agreement is one piece of a very large 123 Agreement, and we’re happy to see that it’s moved forward,” Tauscher said.

Later in the day, the State Department released the text of the arrangements and procedures agreed between India and the United States.

The advanced consent agreement, the third such pact ever undertaken by the U.S. with another country, grants India advance consent to reprocess spent fuel of U.S. origin and fuel burned in U.S. reactors.

Labels: 123 agreement, Philip Crowley, spent nuclear fuel

From The Hindu

Secretary of State Hillary Clinton on Monday expressed her sympathies with the victims of Monday’s bombings in Moscow, saying, “Our thoughts and prayers are with the victims of this morning's bombings in Moscow, their families, and all the people of Russia.”

She said that the “brutal assault on innocent civilians is another reminder that terrorism is a threat to peace-loving people everywhere and must be met with unwavering resolve.” She added that she would offer her personal condolences to Foreign Minister Lavrov later today in Ottawa, Canada and along with the United States’ G8 partners, she would discuss how to further strengthen international counterterrorism coordination and cooperation.

Alluding to her visit to Moscow earlier this month, she said that “I know the resilience and determination of the Russian people. The United States stands with them today and everyday in solidarity against violent extremism in all its forms.”

Labels: Hillary Clinton, Moscow blast

From The Hindu

Lockheed Martin, the American aerospace specialist on Monday said the F-16 aircraft being offered India would be “much more advanced” than the fighters provided to Pakistan.

Speaking to visiting Indian journalists in Dallas, Texas, Orville Prins, Vice-President, Business Development (India) said, “I can assure you, the Super Viper is much more advanced in all aspects than the F-16s being given to Pakistan.”

Mr. Prins' assurance comes in the wake of reports that India was concerned over the U.S. providing Pakistan with a new set of F-16 aircraft, a decision which could be a crucial geopolitical factor when the Indian Air Force (IAF) decides on the $10-billion Medium Multi-role Combat Aircraft (MMRCA) tender, described as “mother of all deals.”

According to a statement by Lockheed Martin, the F-16IN Super Viper is the “ultimate fourth generation fighter” and is tailored exclusively to meet or exceed all of India's Medium Multi Role Combat Aircraft (MMRCA) requirements.

The company said the aircraft is “the right choice for the Indian Air Force (IAF) and is ready for integration into India's infrastructure and operations now.” Evolutionary integration of fifth generation technologies makes the F-16IN the most advanced fourth generation fighter in the world today, said the company.

However, Mr. Prins declined to discuss details regarding the company's dealings with Pakistan, adding that Lockheed Martin was not the firm that was selling anything to any country, but was simply partnering with the U.S. Air Force.

Mr. Prins pointed out that it was not only Lockheed Martin that was supplying to Islamabad, but there were six other contenders in the MMRCA race, including the U.S.'s Boeing, the French D'Assault, the Swedish Gripen, the European consortium EADS, and the Russian MiG.

Labels: F-16, Indian Air Force, Lockheed Martin, Medium Multi-role Combat Aircraft

From The Hindu

India and the United States have agreed to the arrangement and procedures under which the reprocessing of spent nuclear fuel will take place at two stand-alone safeguarded sites. New Delhi also retains the right to make additions and modifications.

This will allow India to retrieve recyclable material found in spent fuel from U.S.-origin nuclear plants for further generating electricity.

The reprocessing plants would operate under International Atomic Energy Agency (IAEA) procedures, the U.S. State Department and the Indian Department of Atomic Energy simultaneously announced on Monday.

This is only the third pact signed by the U.S., the earlier ones being with Japan and Euratom, a European consortium.

Until the final round of talks earlier this month, the principal sticking points revolved around the number of facilities that the agreement would cover, and the conditions under which the U.S. could suspend the operation of arrangements and procedures, thereby bring a halt to the reprocessing of U.S.-origin spent fuel in India.

The U.S. wanted the agreement to cover only one reprocessing facility, while India felt the 123 agreement envisaged multiple facilities. In the end, the final text says the pact will apply to two facilities, with India allowed to make additions and modifications.

This clause, Indian officials say, will allow the country to augment its reprocessing capacity without going back to the negotiation table if the need arises for more plants.

As for suspension, Indian officials say the final agreement now allows Washington to suspend the arrangements and procedures only if there is a threat to physical security or to U.S. national security. Earlier, the U.S. wanted this kept very open-ended, while India was for restricting it to “exceptional circumstances.”

India is satisfied with the final outcome, officials said, dismissing both scenarios as “highly unlikely.”

Asked whether the U.S. sought “IAEA plus” safeguards, the officials acknowledged that the agreement had some “padding,” but claimed that this was not “prescriptive.” The implementation of safeguards was entirely the responsibility of the IAEA, they said.

The U.S. State Department said the completion of these arrangements would “facilitate participation by U.S. firms in India's rapidly expanding civil nuclear energy sector.”

With the reprocessing pact out of the way, the U.S. will be “following the progress of [the liability] legislation very closely,” U.S. Assistant Secretary of State Robert Blake said.

While India has been assured of upfront reprocessing rights by Russia and France, Section 201 of the Hyde Act — an American law prescribing the envelope for Indo-U.S. civil nuclear cooperation — asks the U.S. President to ensure that countries offering similar rights do so under comparable terms.

It also states that the pact will be void if the U.S. Congress disapproves of it, despite the U.S. President reporting in “detail” the reasons, description and text of the reprocessing arrangement.

India claims that the Hyde Act is U.S.'s domestic law and its sole reference point is the bilateral 123 civil nuclear agreement.

“These arrangements will help open the door for U.S. firms in India's rapidly expanding energy sector, creating thousands of jobs for the citizens of both our countries,” U.S. Ambassador to India Timothy Roemer said.

Labels: IAEA, nuclear cooperation, nuclear energy

From The Hindu

U.S. President Barack Obama on Saturday announced fifteen appointments to various positions within strategically important departments of the administration, including the Department of Homeland Security, the Department of Commerce, the Treasury, the National Labour Relations Board, the Office of the United States Trade Representative and the Equal Employment Opportunities Commission.

The fifteen nominees will fill critical administration posts that have been left vacant, including key positions on the economic team and on boards that have been left with vacancies for months, according to the White House.

Coming during a Congressional recess period as these appointments do, the President defended his actions saying, “The United States Senate has the responsibility to approve or disapprove of my nominees. But if, in the interest of scoring political points, Republicans in the Senate refuse to exercise that responsibility, I must act in the interest of the American people and exercise my authority to fill these positions on an interim basis.”

Yet the appointments were strongly criticised by the opposition, much of their ire focused on the nomination of Craig Becker, currently associate general counsel with the Service Employees International Union. Mr. Becker was appointed to the National Labour Relations Board.

The Senate’s 41 Republicans were reported to have asked Mr. Obama last week to desist from making a recess appointment for Mr. Becker. Previously, two conservative Democratic senators had joined Republicans in a filibuster of Mr. Becker's appointment.

Republicans and business groups criticised Mr. Becker’s appointment. According to the U.S. Chamber of Commerce, “Mr. Becker's prolific writings ... suggest a radical view of labour law that flies in the face of established precedent and case law and is far outside the mainstream.”

Further Senator Lamar Alexander of Tennessee told CNN that the consideration of presidential nominees is an important role for the Senate, and said, “What it's called is checks and balances… And what the president has done here is throw fuel on the fire at a time when ... the debate about politics is a very angry debate to begin with.”

However President Obama argued that most of the staff whom he appointed were approved by Senate committees months ago, yet still awaited a vote of the Senate. “At a time of economic emergency, two top appointees to the Department of Treasury have been held up for nearly six months. I simply cannot allow partisan politics to stand in the way of the basic functioning of government,” he said.

In a move to stave off criticism for making appointments outside the Congressional framework the White House explained that President Obama had a 217 nominees pending before the Senate, for an average of 101 days each, including 34 nominees pending for more than six months.

Further the White House clarified that former President George W. Bush made 15 recess appointments by this point in his presidency, “but he was not facing the same level of obstruction.”

Labels: Barack Obama, Craig Becker, recess appointments

From The Hindu

Highlighting his recent travels to India, Thailand and Indonesia, Admiral Robert Willard, Commander of the United States Pacific Command, noted that he was “focused in and around India, specifically with regard to Lashkar e-Taiba, the terrorist group that attacked into Mumbai some months ago.”

Admiral Willard also said that areas along the borders of India and China are “contested,” adding that “it’s in all of our interests that these issues be resolved peacefully through the use of multilateral forums like ASEAN… that these things be discussion items government-to-government and ultimately resolved in a peaceful way.”

The Pacific Command area of responsibility for the U.S. stretches from the West Coast of the United States to a dividing line between the nation of India and Pakistan, Admiral Willard explained, at a press briefing.

On the occasion he said that the U.S.’s relationship with India, “a strategic partner and like-minded democracy, [is] of great importance in South Asia.”

Labels: Admiral Robert Willard, Lashkar e-Taiba, United States Pacific Command

From The Hindu

U.S. President Barack Obama on Saturday said “bold reforms to the higher education system passed by Congress this week... [will save] taxpayers $68 billion over the next decade by ending the subsidies given to banks and middlemen who handle student loans.”

The President argued that the money saved through these reforms would expand and strengthen the federal Pell Grant program. It would also cap college graduates’ annual student loan repayments at 10 percent of their income, revitalize community colleges, and increase support for Minority Serving Institutions, he added.

In a strong statement against bank subsidies for student loans he said, “Year after year, we’ve seen billions of taxpayer dollars handed out as subsidies to the bankers and middlemen who handle federal student loans, when that money should have gone to advancing the dreams of our students and working families.” He said that attempts to fix the problem had been thwarted by special interests “that fought tooth and nail to preserve their exclusive giveaway.”

Mr. Obama expressed hope that by the end of this decade the United States would again have the highest proportion of college graduates in the world, by making college education more affordable for millions of middle-class Americans.

Pointing to the presently high cost of tertiary education in the U.S. he said, “About two in three graduates take out loans to pay for college. The average student ends up with more than $23,000 in debt. So when this change takes effect in 2014, we’ll cap a graduate’s annual student loan repayments at 10 percent of his or her income.”

He further said his administration was planning to revitalise programmes at community colleges and increasing support for our Minority Serving Institutions, including Historically Black Colleges and Universities.

Labels: Barack Obama, Pell Grant program, student loans, U.S. education

From The Hindu

In an attempt to directly reach “millions of responsible, middle-class American families struggling to stay in their homes” the United States Treasury announced adjustments to the Home Affordable Modification Program (HAMP) and the Federal Housing Administration (FHA) programmes on Friday.

According to the Treasury the adjustments to these programmes “will better assist responsible homeowners who have been affected by the economic crisis through no fault of their own.” They aim to provide greater flexibility for mortgage servicers and originators to assist more unemployed homeowners and those owing more on their mortgage than the value of their home.

The adjustments will, the Administration hopes, reach 3 to 4 million struggling homeowners by the end of 2012. The federal costs of the support programme will be funded through the $50 billion allocation for housing programmes under the Troubled Asset Relief Program (TARP). The private sector will also share a part of the total costs, according to the Treasury.

However the adjustments came under fire from some Democrats for its limited coverage: “The central issue we need to understand is why fewer than 200,000 homeowners have obtained so-called 'permanent' modifications...and what we can do to increase that number,” Representative Edolphus Towns was reported to have said at a hearing on Capitol Hill.

Republicans and other constituents levelled further criticism at the schemes: according to reports Republican Darrell Issa of California said HAMP was a “failure,” and John Taylor of the National Community Reinvestment Coalition “blasted Treasury for not showing the same urgency to help homeowners as it has for the banking industry.”

Further reports cited Neil Barofsky, special inspector general for the TARP programme, as saying that the Treasury's metric for measuring the success of the programme is “essentially meaningless.”

"Absent a thorough review...the program risks helping few, and for the rest, merely spreading out the foreclosure crisis over the course of several years, at significant taxpayer expense and even at the expense of those borrowers who continued to struggle to make modified, but still unaffordable, mortgage payments for months more before succumbing to foreclosure anyway," Mr. Barofsky's office reportedly said.

However the Treasury pointed to some positive results of the housing market stabilisation initiatives undertaken thus far, saying that mortgage rates had reached record lows with more than four million homeowners refinancing their mortgages to more affordable levels, helping to save more than $7 billion annually.

“More than one million homeowners are saving an average of over $500 per month through the Administration's modification program, home equity increased by more than $12,000 for the average homeowner in the last three quarters last year and the economy is growing,” the Treasury added.

Yet numerous challenges remain, even the Treasury admitted; for example mortgage servicers were slow to implement HAMP, resulting in a slow start for the programme. Further President Obama recently said “We can't stop every foreclosure,” underscoring that government resources would be used assist to only struggling middle class families.

The Treasury reiterated that it would selectively utilise funds for of mortgage-related assistance: “Investors and speculators should not be protected under our efforts, nor should Americans living in million dollar homes or defaulters on vacation homes. Some people simply will not be able to afford to stay in their homes because they bought more than they could afford. Instead, the Administration must focus on providing responsible homeowners opportunities to obtain a modification or to refinance and prevent avoidable foreclosures…”

It further stipulated clear eligibility conditions for homeowners to benefit from the modifications under HAMP. These conditions include the requirement that homeowners “must live in an owner occupied principal residence, have a mortgage balance less than $729,750, owe monthly mortgage payments that are not affordable (greater than 31 percent of their income) and demonstrate a financial hardship.”

Similarly the FHA refinance options announced will only provide opportunities for lenders to restructure loans to homeowners who owe more than their home is worth and “the population eligible for a FHA refinance must be current on their mortgage.”

Labels: Federal Housing Administration, Home Affordable Modification Program, homeowners, United States Treasury

From The Hindu

At a function marking Air India’s launch of a new route between Washington DC and New Delhi, Minister of State for Civil Aviation Praful Patel said that in the last round of the Federal Aviation Authority’s safety audits “They have rated India pretty good… and it ranks amongst the better countries governing technical standards worldwide… so to that extent we have a very good engagement with them.”

During his visit to the United States Mr. Patel held meetings with Secretary of Commerce Gary Locke, Secretary of Transportation Ray LaHood, and Federal Aviation Administrator Mr. Randy Babbitt.

Mr. Patel further said he discussed with U.S. officials India’s shift to GPS or satellite based navigation systems, moving away from land-based systems that are in use at present. “That will shorten our air routes,” Mr. Patel explained, adding, “In a time when there are a numerous environmental concerns such as global warming, we need to have shorter air routes and more efficient aircraft.” He said the GPS systems would be in place by “next year.”

On the delay by Boeing in delivering its 787 aircraft to India Mr. Patel said, “Boeing is going to be paying compensation to India for the delay of the 787 [delivery]. The overall transaction with Boeing is for 68 planes; of these, 27 planes – which are 787s – are delayed definitely by a year and a half, so Boeing will be paying compensation for that.”

On the financial problems at Air India, Mr. Patel said, “Air India ran into a really rough patch due to the 2008 oil prices and also the recession and the slowdown in air travel, even in India. This also applied to other private carriers, Kingfisher and Jet included,” he said. Denying that the government gave Air India a bail-out, he clarified that they were given a government equity infusion of Rs.800 crores and during the financial year 2010-11 they would get another infusion of Rs.1200 crores.

Finally Mr. Patel said that in discussions with U.S. officials he had brought up India’s view on the need to reduce export restrictions for dual use technology from the U.S.. “The U.S. must be a little more forthcoming on [India’s] use of dual use technology,” he said.

Labels: civil aviation, Praful Patel

From The Hindu

According to a statement by the State Department Rajiv Shah, the Administrator of the United States Agency for International Development (USAID), will sign three implementation letters committing $51 million to “rehabilitate, refurbish and upgrade three energy projects in Pakistan.”

The announcement came towards the end of the U.S.' Strategic Dialogue with Pakistan, including discussions between Pakistani Foreign Secretary Shah Mehmood Qureshi and Secretary of State Hillary Clinton.

Touching on the background to the initiative Ms. Clinton said, “We are working together to ensure that Pakistanis have access to affordable and reliable power, which is essential to funding economic development. When I was in Islamabad in October, we announced a signature energy program.” She said the three thermal power station rehabilitation projects would lead to more electricity in Pakistan.

The State Department said the USAID's investment in the Pakistani energy sector would target the Guddu Thermal Power Station, Muzaffargarh Thermal Power Station and the Jamshoro Thermal Plant. This investment would be “a major step in its partnership with the people and Government of Pakistan towards creating a stable, prosperous and peaceful Pakistan,” the statement said.

Road projects

America and Pakistan also announced plans for the U.S. to spend $40 million to reconstruct and develop two roads in Pakistan of strategic importance. The announcement of the project came on Thursday, towards the end of the ongoing Strategic Dialogue between the two countries.

In a press statement Deputy Secretary of State Jacob Lew and Pakistan's Finance Secretary Salman Siddique said a letter of intent was signed regarding the “construction of priority roads in Pakistan to aid in Malakand Reconstruction.” The two roads that will be upgraded using investments from the U.S. are the Peshawar Ring Road and the road from Kanju to Madyan in Swat, North West Frontier Province.Providing justification for the project the Secretaries said, “Better roads improve security by enhancing access by law enforcement officials, lower the cost of marketing farm output, enhance trade and transportation, and generate jobs.” They added that the projects would be executed through the NWFP Government and will be awarded to Pakistani companies using established, competitive procedures.The first stretch of road under this project, the 43-kilometre-long Kanju-Madyan road in Swat, NWFP is strategically important road to the devastated Swat area as it would facilitate the movements of security forces, help maintain public safety, and address post conflict infrastructure rehabilitation. The Swat area was the site of a major military offensive during the summer of 2009 when the Pakistani military pushed forward into erstwhile militant strongholds.The statement said that the second project would focus on reconstructing the Peshawar Ring Road “which passes through rural areas, by adding a third truck lane, constructing a four kilometer bypass of the Hayatabad residential area, and linking the road to the Matani bypass road that the United States is currently supporting.”The Secretaries noted that the Peshawar Ring Road is now the main route for “heavy trucks and trailers traveling through the Torkam Pass, the major trade route to and from Afghanistan.” The important problem that the road improvement project would help resolve is the vulnerability of vehicles to criminal elements along the way due to the severe damage to the road, which slows traffic.

Broader context of U.S. aid to Pakistan

Underscoring Pakistan's importance to the United States and the need to support it with financial aid, Secretary of State Hillary Clinton said, “In Pakistan, our efforts are vital to success in Afghanistan, but also to our own American security. We've made it a strategic priority to strengthen our partnership with the Pakistani people.”

Speaking at the Senate Appropriations Subcommittee on State, Foreign Operations, and Related Programs, Ms. Clinton added that based on the U.S.-Pakistan Strategic Dialogue, she was requesting $370 million for assistance and operations to “allow us to expand civilian cooperation at a critical moment.”

However she said she was “under no illusion that success in this arena will come quickly or easily.” Yet there were signs of improvement, including the Pakistani Government's “important offenses in Swat, South Waziristan, and throughout the country,” she explained.

Calling for more humanitarian assistance to avoid the further spread of extremism in these regions, she said success would depend on “rapidly and sustainably scaling up our efforts,” particularly in high-impact projects that visibly demonstrated U.S. long-term commitment to helping the Pakistanis build capacity while ensuring accountability.

Labels: Swat, terrorism, U.S. aid

From The Hindu

The United States and Russia have agreed the most “comprehensive arms control agreement in nearly two decades,” President Barack Obama announced here on Friday.

At a press conference Mr. Obama said that he had concluded a “productive phone call” with Russian President Dimitri Medvedev, bringing to a close more than a year of intense negotiations around reductions in the two countries' stocks of nuclear weapons.

Conceding that his aspiration for a nuclear-free world would not be reached “in the near future”, he said, that a fundamental part of that effort however was the negotiation of a new Strategic Arms Reduction Treaty (START) with Russia.

Elaborating on some of the details of the new START Treaty, Mr. Obama said it would make progress in several areas.

These include reduction by about one third the nuclear weapons that the two countries would deploy, “significant” reductions in missiles and launchers and putting in place “a strong and effective verification regime.”

However the agreement also ensures the maintenance of the “flexibility” that the U.S. and Russia need to “protect and advance our national security, and to guarantee our unwavering commitment to the security of our Allies,” Mr. Obama noted.

In this context he underscored the importance of the 40-plus nations nuclear security summit in Washington next week and also discussions to be held in New York later in 2010.

Hoping that Congress would work with him on the non proliferation issue Mr. Obama said,

“There is a long tradition of bipartisan leadership on arms control. Presidents of both parties have recognized the necessity of securing and reducing these weapons.”

He added that his administration would be consulting Senators from both parties “as we prepare for what I hope will be strong, bipartisan support to ratify the new START treaty.”

Labels: nuclear weapons, Russia, U.S.

From The Hindu

The healthcare reform bill that President Obama signed into law on Tuesday has hit a “technical snag,” owing to Republican-sponsored amendments, it emerged late on Wednesday night.

According to reports, Senate Majority Leader Harry Reid said the changes made to the original bill, now an Act, would have to go back to the House of Representatives for final Congressional approval.

While Democrats managed to stave off over 22 amendments introduced by Senate Republicans, they, however, encountered a snag over two provisions that violated budget rules, reports said.

Of the amendments that are currently holding up the final passage of the bill, Mr. Reid said: “There's no attempt to improve the bill; there's an attempt to destroy this bill.”

The minor provisions that are holding up the bill — according to some reports no more than 16 lines — were flagged by Republicans as cases that violated the Congressional rule that legislation in a reconciliation vote cannot be unrelated to federal budget matters.

Democratic leaders in Congress, including House Speaker Nancy Pelosi, expressed confidence that the final bill would pass nevertheless.

Labels: healthcare Bill, Republicans

From The Hindu

Pakistan may be operating a second nuclear reactor under the country's nuclear weapons programme, according to an expert at the Washington-based Institute for Science and International Security.

Paul Brannan, Senior Analyst at ISIS, today told The Hindu that GoogleEarth satellite images showing steam distorting the view of some cooling tower fan blades at the second plutonium production reactor at Khushab “indicates to me that the reactor is in some state of initial operation such as a power start-up.”

Explaining that the steam was emerging from “mechanical drafting cooling towers” beside a visible, rectangular reactor structure, Mr. Brannan said that as the operation of the reactor progresses, he would expect to see more steam emerging from the adjacent MDCTs.

According to Mr. Brannan's report, in February 2010 Zia Mian of the International Panel on Fissile Materials said that Pakistan had completed construction of the second Khushab reactor. The statement by Mian cited a recent visit to the site by the Prime Minister where he reportedly congratulated engineers for “completing important projects.”

Third reactor
Mr. Brannan said that Pakistan had started constructing the Khushab-II reactor back in 2002 and in 2007 construction activity for a third reactor was noticed in satellite images. “We have been following the construction of the second reactor in particular,” Mr. Brannan said, adding that “they had been expecting it to begin operation around this time.”

When asked whether his report of March 24 had received any reaction from the United States government he said, “I haven't heard a word.” However he added that in 2006 when ISIS showed the U.S. administration initial images of Khushab-II they had a “muted” reaction, with a statement to the effect that the U.S. called upon Pakistan no to use nuclear developments for military purposes.

Mr. Brannan however cautioned that given that “only few nations in the world have nuclear production capability, the start-up operation of the second Khushab reactor, leading to a possible doubling of plutonium output in Pakistan, is significant.”

Labels: nuclear reactor, Pakistan

From The Hindu

Secretary of State Hillary Clinton said that water issues between Pakistan and India would have to be resolved bilaterally, in comments made to a Pakistani television channel here on Tuesday.

Asked whether the United States could play a more robust diplomatic role between India and Pakistan on the issue of water, she said, “We're well aware that there is a 50-year-old agreement between Pakistan and India concerning water.”

Ms. Clinton said that among the various issues being considered within the ongoing Strategic Dialogue between the U.S. and Pakistan, water alone could not be singled out for U.S. intervention.

“I think the issues that you mentioned are all interconnected, and you can't pull one out and say, well, is this now going to become international as opposed to what we can do within the context of our relationship to assist Pakistan,” she said.

Underscoring that water issues should remain within the confines of bilateral dialogue, Ms. Clinton added, “Where there is an agreement, as there is between India and Pakistan on water, with mediation techniques, arbitration built in, it would seem sensible to look to what already exists, to try to resolve any of the bilateral problems between India and Pakistan.”

She further emphasised that the U.S. was willing to directly help Pakistan work on its water issues to the extent that they were purely domestic concerns for Pakistan: “In the course of the strategic dialogue, what we want to do is focus on the problem. If the problem is water or agriculture or energy, without looking externally, as we do in our other strategic dialogues, when we have a strategic dialogue with Russia, it's between the United States and Russia.”

Continuing the U.S.-Russia example to illustrate her views on how the U.S. could similarly help Pakistan on water issues, she said that even if Russia had trouble with China or with another neighbour the U.S.-Russia strategic dialogue would remain between the two countries only. Similarly the U.S.'s strategic dialogue with Pakistan is what her government really wanted to build at the highest level of civilian democratic leadership, she said.

Labels: Hillary Clinton, U.S. mediation, water dispute

From The Hindu

When 31-year-old Tejdeep Singh Rattan graduated into the army from Fort Sam Houston at San Antonio, Texas this week he did something that no member of his community had done in nearly three decades. He became the first Sikh in a generation who had continued wearing a traditional turban and yet joined the United States military, a feat not achieved since 1981.

On graduation day, surrounded by a gaggle of other members of the Sikh community and media a beaming Captain Rattan said to reporters, “I'm feeling very humbled. I'm a soldier. This has been my dream.”

Harsimran Kaur, Legal Director of the Sikh Coalition, a community-based organisation, spoke to The Hindu about the rare exception that Captain Rattan’s case is. She explained that in 1981, the U.S. Army banned “conspicuous” religious articles of faith for its service members. This included a ban on Sikh turbans and unshorn hair.

Ms Kaur said that Captain Rattan was initially enrolled in a dentistry course and signed up for training for the army back in 2006 through a Health Professionals. At the time he was told he would be able to enter the army wearing the traditional Sikh turban. However by the time he was near graduation, in 2008, he was informed that that decision had been revoked. It was at this point that the Sikh Coalition got involved, Ms. Kaur said.

The Sikh Coalition along with legal counsel supported Captain Rattan in putting in an application for an exemption from the U.S. Army. After a process that was drawn out over nearly six months, they finally got news that the application had succeeded. Additionally another Sikh applicant had succeeded, it was learnt -- Kamaljeet Singh Kalsi, also with a medical background.

On the victory for the Sikh community Ms. Kaur said “We’re very happy that the army has accommodated Captain Rattan. We are working towards the day when it will be possible for all Sikhs to serve in the army without compromising their religion.” She added that Captain Rattan’s case illustrated that Sikhs could serve in the army with no issues around “unit cohesion, safety concerns or esprit de corps”

A press release by the Sikh Coalition said that contrary to the concerns of some, Captain Rattan was able to meet all the requirements of a solider during basic training. He wore a helmet over a small turban during field exercises. During gas mask exercises, he was able to successfully create a seal with his gas mask, the release said.

While the general policy disallowing Sikhs from maintaining their articles of faith in the military still remains in effect, the two recent exceptions reflect the U.S. army’s need for soldiers with health care skills. According to reports this may be linked to continued the country’s engagement in wars in Iraq and Afghanistan.

Captain Rattan said he did not encounter any trouble from fellow soldiers during training. "The Army is all about what you have to offer… If you're up there running with them, you have good scores, you run neck-and-neck with them, they love you," he said, adding, "I made a lot of friends.”

Labels: Sikh officer, Tejdeep Singh Rattan, U.S. Army

From The Hindu

Pakistani Foreign Minister Shah Mehmood Qureshi said on Wednesday that Pakistan stills hopes the United States would play a “constructive” role in resolving the Kashmir dispute and providing it with “non-discriminatory” access to energy.

Mr. Qureshi said: “Pakistan seeks peaceful resolution to all issues in South Asia, including Kashmir. We hope the U.S. will maintain its constructive engagement to encourage this process.”

At a press conference at the start of a Strategic Dialogue between the two countries, Mr. Qureshi said an improved relationship between the two countries “is good for Pakistan, good for America and good for international peace, security and prosperity.”

Secretary of State Hillary Clinton similarly affirmed, “It is the start of something new.” However, she added, “Our countries have had our misunderstandings and disagreements in the past and there are sure to be more disagreements in the future, as there are between any friends or, frankly, any family members.”

Hinting at a fresh start in the U.S.-Pakistan relationship, she said, “But this is a new day. For the past year, the Obama administration has shown in our words and deeds a different approach and attitude toward Pakistan.”

She added that the dialogue that the U.S. sought was not only with the government of Pakistan, but also the people of Pakistan.

Mr. Qureshi's reference to “non-discriminatory” access to energy was a reiteration of Pakistan's request for a civilian nuclear deal with the U.S., similar to an agreement reached with India two years ago.

However in an earlier interview Ms. Clinton had said that the civilian nuclear deal with India was “the result of many, many years of strategic dialogue.”

It did not happen easily or quickly, she added, further saying: “I think on the energy issue specifically, there are more immediate steps that can be taken that have to help with the grid, have to help with other sources of energy, to upgrade power plants and the like.”

Meanwhile, India and Pakistan should resolve disputes bilaterally and the United States administration does not see a role for itself unless called upon by both countries to mediate, Richard Holbrooke, Special Representative to Pakistan and Afghanistan said here.

Speaking at a joint press conference with Pakistani Foreign Secretary Salman Bashir, Mr. Holbrooke added that Washington would continue to encourage both New Delhi and Islamabad to talk to each other on all issues.

However, he refused to comment on Kashmir, saying that he did not have a mandate to do so.

Labels: Hillary Clinton, India-U.S. nuclear deal, Kashmir issue, Pakistan Foreign Minister, Shah Mahmood Qureshi, Strategic Dialogue, U.S. Secretary of State

From The Hindui

The 24/7 news cycle and the intense glare of a thousand cameras has made all politicians wary of every word escaping their lips.

The media, in turn, has turned into a ravenous, sound-byte-hungry beast that hangs on every such word.

Yet for all the frenzy it is sometimes that unintended whisper caught on tape that reveals more than a thousand prepared lines.

On Tuesday, in the aftermath of the historic passage of the healthcare reform bill, President Obama held a ceremony for signing the bill into law in the East Room of the White House.

The signing was witnessed by an august gathering, including Vicki Kennedy, widow Senator Edward Kennedy, who fought fiercely for healthcare until his death last year; and 11-year-old Marcelas Owens, who lost his mother to illness because she lacked medical care, and yet he had become one of Mr. Obama's favourite ambassador's for reform.

When the President and the Vice-President entered the room they did so to thunderous applause and chants of “Yes We Can!”

But before the President addressed the crowd, who should step up to introduce him but Vice President Joseph Biden, a man with a less-than-perfect record on social faux pas.

He began with aplomb, saying “Mr. President, your passion to make the lives of ordinary Americans better has been on display.

And the principles that guided your public service, beginning when you were a community organiser, have led this nation to this moment... Ladies and gentlemen, the President of the United States of America, Barack Obama…”

And then it happened.

The Vice-President leaned over his boss' shoulder to whisper something in his ear. Sadly he didn't lean far enough to be out of earshot of the microphones.

So the many millions watching their national leaders on stage heard him say to Mr. Obama: “This is a big [expletive] deal.”

News of Mr. Biden's gaffe has since travelled, viral-style and like wildfire, across the global media — as a testimony not only to the breadth of his vocabulary, but more importantly to how much healthcare reform has meant to this White House.

Labels: Biden, controversy, healthcare Bill, Obama

From The Hindu

The United States' commitment to the security and future of Israel was “rock solid, unwavering, enduring and forever,” Secretary of State Hillary Clinton said at a speech to AIPAC, an Israel lobby.

However, she cautioned Israel saying that today it was “confronting some of the toughest challenges in her history.” In particular, the conflict with the Palestinians and with Israel's Arab neighbours was an obstacle to prosperity and opportunity for Israelis, Palestinians and people across the region, she said.

Her comments come at an uncertain time for U.S.-Israel relations. Earlier this month, Vice-President Joe Biden and U.S. Special Envoy to the Middle East George Mitchell were in Jerusalem and Ramallah to take forward plans for indirect peace talks, the first in over a year, between Mr. Netanyahu and Palestinian President Mahmoud Abbas.

Yet in what appeared to be a snub to Mr. Biden and Mr. Mitchell, the Israeli Interior Ministry announced that permission had been granted for 1,600 new housing units in East Jerusalem. In a strongly worded reaction Mr. Biden said, “I condemn the decision by the government of Israel to advance planning for new housing units in East Jerusalem.”

Both sides have since sought to downplay the frictions over the floundering talks initiative. On Monday Ms. Clinton, however, reminded AIPAC that that conflict with Palestine threatens Israel's long term future as a secure and democratic Jewish state, and “The status quo is unsustainable for all sides.” Ms. Clinton warned that staying on this course means continuing a conflict that carries tragic human costs in terms of “more violence and unrealised aspirations.”

Labels: conflict, Israel, Palestine

From The Hindu

Google Inc. will stop offering censored results through its search engine in China, a press release from the company on Monday confirmed. In a statement, Google said that the “sophisticated cyber attacks originating from China”, coupled with evidence that Google uncovered during its investigation into these attacks, suggested that Google Email accounts of “dozens of human rights activists connected with China were being routinely accessed by third parties.”

In the statement, Google also said that it would continue research and development work in China and maintain its sales presence.

At a Congressional hearing earlier this month, Google Vice-President, Nicole Wong, had said, “We no longer feel comfortable censoring our search results in China”, adding that Google would “resist government censorship and other acts to chill speech even when that decision is hard.”

In Monday's announcement, Google also expressed its unwillingness to tolerate these attacks and attempts to further limit free speech on the web in China – including the blocking of social media websites such as Facebook, Twitter, YouTube and Blogger – and said it could no longer continue censoring its results on Google.cn.

Visitors redirected

Users visiting Google.cn are now being redirected to Google.com.hk, the company said, where uncensored search in simplified Chinese was on offer. This website was specifically designed for users in mainland China and delivered via the company's servers in Hong Kong, it added

In China, where censorship is a condition of operation, Google said, “The government has been crystal clear throughout our discussions that self-censorship is a non-negotiable legal requirement.

We very much hope that the Chinese government respects our decision, though we are well aware that it could at any time block access to our services. We will therefore be carefully monitoring access issues, and have created this new web page, which we will update regularly each day, so that everyone can see which Google services are available in China.”

Labels: Chinese government, Google China, Google search

From The Hindu

The United States House of Representatives made history late Sunday night by passing the Senate version of the healthcare reform bill by a narrow but firm margin of 219-212. Further the House also passed the “fix it” bill of House amendments to the Senate bill, by a margin of 217-205. Every House Republican voted against the bill.

Speaking after the vote, Mr. Obama said, “This is what change looks like,” adding however that this was a victory for commonsense rather than for any political party. He conceded that it was not an easy vote for a lot of people, “But it was the right vote,” he said.

Mr. Obama reminded the caucus that the vote was for the common man: “To every unsung American, who took the time to sit down and write a letter… hoping your voice would be heard, it has been heard tonight.”

In due course it is expected that the bill passed on Sunday would lead to additional insurance coverage for almost 32 million more Americans, bringing the healthcare system closer than ever to the goal of universal coverage. It will also weaken the grip of health insurance companies over the market by preventing them from denying coverage based on pre-existing conditions and restrict their ability to raise premiums or drop coverage.

Further, children may remain on their parents' insurance policies until the age of 26 and insurance companies would no longer be able to impose lifetime limits on policies. The costs of obtaining insurance cover would also fall for older people and those with pre-existing conditions through their participation in “high-risk pools.” Small business would also derive such benefits by participating in state-level exchanges and some businesses would face penalties for not providing their employees with insurance.

The bill, which will soon be signed into law by President Obama as the Patient Protection and Affordable Care Act, will also bring down the deficit of the country by $143 billion over 10 years and by over a trillion dollars within the following 10 years, according to the Congressional Budget Office (CBO), the non-partisan scorekeeper on such debates. It will cost the American taxpayer $940 billion, according to the CBO.

High drama on the abortion issue accompanied the passage of the bill. Pro-life Democratic Congressman Bart Stupak – who dropped his opposition to the bill based on the promise of a Presidential Executive Order banning the use of federal funds for abortions – was called “baby-killer” by an unknown member of Congress from the Republican side. Mr. Stupak has been one of the most staunch pro-lifers in the House in years.

Labels: Democrats, healthcare Bill, President Barack Obama, Republicans, U.S. Congress

From The Hindu

With less than three hours to go before a historic vote on healthcare reform, scheduled for Sunday afternoon in the House of Representatives, House Democrat John Larson of Connecticut said on CNN’s State of the Union telecast that his party had garnered the votes necessary to get the bill passed.

Speaking on a panel alongside House Republican Mike Spence, Mr. Larson said that House Democrats had reached the crucial 216-vote mark to see the bill through. However Mr. Spence said that House Republicans would do everything in their power to stop the bill from passing; yet he refused to reveal any details about specific plans.

With 178 Republicans set to vote lock-step against the bill on the floor of the House, they would require at least 38 Democrats to join them in order to kill the bill off. According to reports, 33 Democrats had confirmed they would vote against the bill.

However the Democratic case was bolstered at several points during the course of the week. First, the Congressional Budget Office (CBO) ruled on Thursday that the bill would cost $940 billion over ten years and would lead to a deficit reduction of $138 billion during the same period. The deficit reducing impact was further revised upwards to $143 billion based on new filings over the weekend.

Second, House Speaker Nancy Pelosi reversed an earlier decision to use a “deem and pass” procedure which would bypass the need for a direct up-or-down vote on the Senate version of the bill — a procedure which the Republicans seized upon as an indication of Democratic manipulation of due process. The decision to instead use a direct vote may have further influenced some House Democrats to support the bill on Sunday.

In terms of the procedure to be followed, the overall vote will comprise three sub-votes: first, the House will vote on the rules of the vote itself, second, it will vote on the Senate version of the bill, and third, it will vote on changes to the Senate bill.

If the bill is passed, it will bring to a climactic close the year-long debate on healthcare reform. The passage of the bill would represent a powerful victory for Democrats and a success for President Obama that eluded at least two of his predecessors. It would also imply additional insurance coverage for almost 32 million more Americans, bringing the healthcare system closer than ever to the goal of universal coverage.

Labels: Barack Obama, Democrats, health bill, House Democrat, House Republicans

From The Hindu

During a protest over the weekend, organised by the conservative Tea Party movement, crowds attacked Democratic members of Congress present on the scene with racist slurs and abuses over sexual orientation, revealing an ugly side of political polarisation the United States.

The protests — centred around the healthcare reform bill that Congress was scheduled to vote on — turned hostile as members of the Congressional Black Caucus were leaving the Longworth House office building from across the Capitol.

According to a member of staff for Representative James Clyburn of South Carolina, Representative John Lewis of Georgia was subjected to racist slurs and a derogatory term relating to sexual orientation was hurled at Representative Barney Frank of Massachusetts, an openly gay Congressman. Rep. Emanuel Cleaver of Missouri was spat on by a protestor.

In a statement to the Huffington Post Mr. Clyburn said, “It was absolutely shocking to me… Fifty years ago as of last Monday... I led the first demonstrations in South Carolina... And quite frankly I heard some things today I have not heard since… March 15, 1960 when I was marching to try and get off the back of the bus.” Mr. Clyburn said he had told one heckler that he was “the hardest person in the world to intimidate, so they better go somewhere else.”

He went on to add, “A lot of us have been saying for a long time that much of this… is not about health care at all. A lot of those people today demonstrated that this… is about trying to extend a basic fundamental right to people who are less powerful.”

In a similar vein Mr. Frank was reported to have said, “I'm disappointed with the unwillingness to be civil… I was… surprised by the rancour. What it means is obviously the health care bill is proxy for a lot of other sentiments, some of which are perfectly reasonable, but some of which are not.”

According to reports, Capitol police escorted the members of Congress into the Capitol after the confrontation. At least one demonstrator was reported arrested in connection with the spitting incident although a spokesman for Mr. Cleaver was reported as saying that he would not be pressing charges.

Speaking on CNN’s State of the Union programme on Sunday, Democrat John Larson and Republican Mike Spence, both from the House of Representatives, condemned the incident.

The Tea Party movement, which rose into prominence last year, is a fiscally conservative political group whose primary appeal was based on its opposition to the stimulus package of 2009 and expansionary social welfare policies such as healthcare reform.

Labels: Barack Obama, Congress, Democrats, Tea Party Movement

From The Hindu

On the seventh anniversary of the invasion of Iraq, thousands of people from across the United States on Saturday converged on Lafayette Square, opposite the White House in Washington DC. The rally then marched through downtown DC, halting en route at the premises of military contractor Halliburton, the Mortgage Bankers Association and The Washington Post offices.

While the protest drew a smaller crowd than the tens of thousands who marched during the final years of the Bush administration, the ANSWER coalition, the main organiser, said momentum was building due to disenchantment with President Obama's troop surge decision for Afghanistan. Other participating groups included Veterans for Peace, Military Families Speak Out and the National Council of Arab Americans and activists such as Ralph Nader and Cindy Sheehan.

In a statement the ANSWER coalition said,

“People from all over the country are organising to converge on Washington, D.C., and on the West Coast to demand the immediate and unconditional withdrawal of all U.S. and NATO forces from Afghanistan and Iraq.”

Instead of war, we will demand funds so that every person can have a job, free and universal health care, decent schools, and affordable housing, said the coalition statement.

According to some reports the rally could prove to be significant as it was the “first massive, nationally coordinated effort to challenge U.S. foreign policy since President Obama took office.” Though the costs and scope of U.S. military engagements have expanded under Mr. Obama, the anti-war movement has thus far been largely silent since January 2008.

However with Saturday's protest march, the movement signalled that it had revived and was capable of challenging the Obama administration on its foreign policy strategies.

The ANSWER coalition said though “the enthusiasm and desire for change after eight years of the Bush regime was the dominant cause that led to election of a big Democratic Party majority in both Houses of Congress and the election of Barack Obama to the White House… [it was now] obvious to all that waiting for politicians to bring real change… is simply a prescription for passivity by progressives and an invitation to the array of corporate interests from military contractors to the banks, to big oil, to the health insurance giants that dominate the political life of the country.”

It is time to be back in the streets, the ANSWER 0statement added.

Labels: ANSWER, Barack Obama, Iraq war, Lafayette Square, U.S., US, Washington DC

From The Hindu

At a press briefing on the upcoming Strategic Dialogue between the Untied States and Pakistan, Richard Holbrooke, Special Representative for Afghanistan and Pakistan, said the U.S. was “extremely gratified that the Pakistani Government has apprehended the number-two person in the Taliban.”

His reaction comes shortly on the back of revelations by former UN staff that secret negotiations with the Taliban for greater peace in Afghanistan might have slowed down due to the arrest of Mullah Abdul Ghani Baradar, Afghan Taliban’s number two commander.

Mr. Holbrooke said many other militants and groups have been picked up or eliminated, and this is increasing the pressure on the Taliban; he added that this was “a good thing for the simplest of reasons: It is good for the military efforts that are underway in Afghanistan.”

Mr. Holbrooke was asked about the revelation by former UN Representative in Afghanistan Kai Eide that he was in talks with senior Taliban leaders since last spring and that those talks were shut down after the Pakistani authorities began arresting senior Afghan Taliban leaders like Baradar.

Reacting to the question about revelations by former UN Representative in Afghanistan Kai Eide that he was in talks with senior Taliban leaders since last spring and that those talks were shut down after the Pakistan arrested Baradar, he said, the arrest “is not related to the issue that you’re addressing.” President Karzai has said he wanted a reconciliation program with all Afghans, including people fighting with the Taliban and President Obama has said we support Afghan-led reconciliation, Mr. Holbrooke said.

On the importance of the talks to U.S.-Pakistan relationships Mr. Holbrooke said, “It marks a major intensification of our partnership, and we welcome the extremely high caliber delegation which Pakistan is sending. It will be lead, of course, by Foreign Minister Qureshi..” He added that President Obama and Secretary Clinton have long stressed the breadth and depth of the U.S.-Pakistan relationship: “This is a partnership that goes far beyond security, but security’s an important part of it,” he said.

Clarifying the intention behind the Strategic Dialogue Mr. Holbrooke said “This strategic dialogue with Pakistan is not at the expense of any other country in the region.” Also there would be no question of telling Pakistan what to do militarily in North Waziristan: “”The Pakistani army, since May of last year, has gone into Swat, where two divisions remain. They have gone into South Waziristan, where an additional number of troops are deployed. They have taken remarkable steps to push back people who threaten their security. What they do in North Waziristan is a decision for them to make.”

However a few days ago Mark Toner, Deputy Spokesman at the State Department said in press interaction, “Obviously, we’re talking about… Afghanistan, the situation there, the spill-over into the FATA [Federally Administered Tribal Areas] and how to really better engage. And in fact, we’ve seen some successes on that front in recent weeks on terrorism,” he added.

In terms of substantively content of the dialogue, Mr. Holbrooke explained that the two countries would “talk about our basic core objectives, [including] defeating, destroying al-Qaida; helping the Afghans become self-reliant so they can take care of their own security; strengthening Pakistan’s ability to – with its own security; development; strengthening democratic institutions.”

Mr. Holbrooke expressed hope that the next round of Strategic Dialogue would be held in Islamabad “within the next six months.”

Labels: al Qaeda, Holbrooke, ISI, Kayani, Mumbai attacks, terrorism, U.S Special envoy for Afghanistan and Pakistan, Zardari

From The Hindu

President Barack Obama on Thursday signed into law the $17.5 billion Hiring Incentive to Restore Employment Act (the “HIRE Act”), comprising a payroll tax holiday for businesses that hire unemployed workers, an income tax credit of $1,000 for businesses that retain these employees and an extension of highways project financing. The bill was passed in the Senate last month and the House earlier in March, with voting largely along partisan lines.

Speaking at the Rose Garden in the White House before signing the bill, Mr. Obama struck a cautious note saying, “I’m signing it mindful that, as I’ve said before, the solution to our economic problems will not come from government alone. Government can’t create all the jobs we need nor can it repair all the damage that’s been done by this recession.”

In a clear indication that jobs may dominate the administration’s agenda in 2010, Mr Obama said, “There's a lot more that we're going to need to do to spur hiring in the private sector and bring about full economic recovery.” However, he said, the government could promote a strong, dynamic private sector as the “true engine of job creation,” and nurture the conditions that allow companies to grow and start hiring again.

Unemployment levels in the U.S. stabilised last month at 9.7%. While the economy has technically emerged out of recession, over 8 million Americans lost their jobs through the global economic downturn and new hiring is sluggish.

Apart from its strong focus on hiring in businesses, particularly small and medium sized businesses, the HIRE Act stands out for its focus on job creation through infrastructure project financing support. Touching upon this aspect of the bill Mr. Obama said it reforms the framework of municipal bonds to encourage job creation by expanding investment in schools and clean energy projects.

“Say a town wants to put people to work rebuilding a crumbling elementary school or putting up wind turbines. With this law, we’ll make it easier for them to raise the money they need, to do what they want to do by using a model that we've called Build America Bonds — one of the most successful programs in the Recovery Act,” Mr. Obama explained.

Commending a minority of Republicans in Congress who supported the bill Mr. Obama said, “The jobs bill I’m signing today — and our broader efforts to achieve a recovery — aren’t about politics. They’re not about Democrat versus Republican. This isn’t a game that we’re playing here. They’re about the people in this country who are out of work and looking for a job.”

Labels: Barack Obama, global meltdown, HIRE Act

From The Hindu

With the 72-hour deadline for passing the contentious healthcare reform bill approaching rapidly Democrats, under steady fire from across the aisle, are scrambling to get to the “magic number” of 216 votes required for its passage in the House of Representatives on Sunday.

This week a barrage of criticism was levelled at House Speaker Nancy Pelosi for attempting to get the bill through the House using the “deemed passed” rule. By this procedure, House members would simply vote on additional changes to the Senate version of the bill rather than the Senate bill itself. However, after this vote the Senate bill, along with the changes, would be “deemed passed.”

The idea behind this would be to give fence-sitters in the House the option of not having to affix their signature to a Senate bill that they have fundamental doubts about. One major difference between the two versions of the bill is the Senate version's language on funding for health insurance policies that include abortion is weaker than the House's so-called “Stupak amendment.”

Republicans, already mounting stronger attacks against what they have called a “government takeover of healthcare” came out strongly against the proposed House procedure. John Boehner, House Minority Leader described it as a “slaughter solution,” saying it was nothing more than an incumbent protection programme for “Democrats afraid to stick their necks out because they know how much the American people oppose this bill.”

Yet a key development in favour of the Democrats' ambition to win over some 36-odd wavering members of their party was the updated cost-benefit “scoring” provided by the non-partisan Congressional Budget Office this week. The CBO ruled that the proposed reform programme would cost $940 billion and lead to a reduction in the deficit by close to $138 billion over the next 10 years — an estimate that cheered Democrats for showing a lower cost level than what was assumed earlier.

However, the Republicans countered this strongly too: Senator John Cornyn, a member of the Senate Finance Committee, said, “My Democratic colleagues never let the facts get in the way of a good story. Despite claims to the contrary, there is no CBO score… and what it reveals is nothing more than a guess.”

Meanwhile President Obama has busied himself delivering a slew of fiery speeches in Washington and elsewhere, seeking to win support for a bill whose passage would help him end the U.S.'s painful struggle with healthcare reform.

Labels: Barack Obama, Democrats, healthcare, Stupak amendment, U.S. President

From The Hindu

Indian authorities will be able to question David Coleman Headley, accused in the 2008 Mumbai attacks and facing 12 terror charges in a Chicago court, but within the United States only, as per a plea agreement that he struck with the court on Thursday.

As per the agreement, based on a change of Headley's plea from not guilty to guilty on all charges, he is currently facing life imprisonment, instead of the death penalty, and is also mandated to continuously cooperate with authorities in providing information regarding terror investigations.

In a conversation with The Hindu, shortly after the agreement was struck, his attorney, John Theis, said that Headley had provided important information to the authorities, which had already “helped save lives.” He said that while he had no information from law enforcement agencies about what they did with any information provided by Headley, “My understanding is that the United States government has shared information with the Indian government on a regular basis.”

The 35-page plea agreement clearly leaves room for Indian authorities to have access to Headley in the context of terror-related investigations in the future. Mr. Theis, however, emphasised that would have to be on U.S. soil as per the agreement. The relevant section reads: “Defendant further agrees that, when directed by the United States Attorney's Office, he will fully and truthfully testify in any foreign judicial proceedings held in the United States by way of deposition, videoconferencing or letters rogatory.”

The agreement effectively rules out the possibility of extradition, stating that pursuant to the U.S.'s extradition treaties with India, Denmark and Pakistan, the “defendant shall not be extradited to the Republic of India, them Kingdom of Denmark, or the Islamic Republic of Pakistan, respectively, for any offenses for which he has been convicted in accordance with this plea.”

In terms of the possible future course of Headley's sentencing, Mr. Theis said that as per his plea agreement he may be eligible for “downward departure” which is essentially a lighter sentence than life imprisonment, again conditional upon his continued cooperation. He was, however, unable to confirm how many years in prison Headley might face in such circumstances, saying that that would be pure “speculation.”

Headley has “agreed not to be sentenced until the case is over,” Mr. Theis said, confirming that sentencing would depend on the arrest and trial of Headley's co-defendants, including Tahawwur Rana, Illyas Kashmiri and Abdur Rehman Hashim Syed. Mr. Theis said at this point it was unclear how long that might take or if indeed they would all be brought before the U.S. justice system. In any case, Headley would likely remain in custody until such time, Mr. Theis added.

The 12 charges against Headley are: conspiracy to bomb places of public use in India (1), conspiracy to murder and maim persons in India (2), aiding and abetting the murders of six United States nationals in Mumbai (3-8), conspiracy to provide material support to terrorism in India (9), conspiracy to murder and maim persons in Denmark (10), conspiracy to provide material support to terrorism in Denmark (11) and providing material support to Lashkar-e-Taiba (12).

For all the charges, Headley cannot be sentenced to probation and the judge also “may impose a term of supervised release of not more than five years.”

Labels: Chicago court, David Coleman Headley, guilty plea, John Theis, Mumbai attacks

From The Hindu

The United States and other countries belonging to the Paris Club of creditors on Wednesday agreed to cancel debt owed by Afghanistan to its members. “Today's decision represents a great achievement for Afghanistan and reflects the international community's acknowledgment of the great strides the country has made in strengthening its economy”, said the U.S. State Department.

While the U.S. said lifting the debt burden inherited by the Afghan government marked a crucial step on Afghanistan's road to economic sustainability, the Paris Club added that Afghanistan had committed to allocate the resources freed by the present debt relief to priority areas identified in the country's poverty reduction strategy and to achieve Millennium Development Goals.

With the accord signed, Afghanistan, a member of the enhanced Heavily-Indebted Poor Countries (HIPC) Initiative, would see the implementation of “completion point treatment,” said the State Department. This implies the cancellation of an estimated $1.6 billion in debt from the Paris Club, as well as the IMF, World Bank and other creditors. As per the debt relief plan, this process will ultimately result in a “96 per cent reduction of the debt inherited by Afghanistan's government,” which was estimated at $11.6 billion in 2006.

After the debt cancellation, the Paris Club said it welcomed Afghanistan's commitment “to seek comparable treatment from all their other external creditors including other creditor countries”. Afghanistan further won praise from the Paris Club for its performance under an International Monetary Fund programme and its progress on implementing economic reforms in a “tremendously challenging” environment.

The breakthrough for Afghanistan comes after years of careful debt and macroeconomic management — since 2002 technical advisors worked with the Afghan Ministry of Finance to streamline the budget process, improve the payment system for government employees, restructure Afghanistan's debt, and establish a Debt Management Unit within the Ministry of Finance, according to official reports.

The Paris Club was formed in 1956. It is an informal group of creditor governments from major industrialized countries. The members of the Paris Club that participated in the restructuring of Afghanistan's debt were Germany, Russia and the U.S.

Labels: Afghanistan, debt, Paris Club, United States

From The Hindu

The United States and Pakistan will hold their first strategic dialogue at the ministerial level in Washington DC on March 24, it was announced here. The talks will be co-chaired by U.S. Secretary of State Hillary Clinton and Pakistani Foreign Minister Makhdoom Shah Mahmood Qureshi.

According to a release, the main topics of discussion will be economic development, water and energy, education, communications and public diplomacy, agriculture, and security.

Additionally, deputy spokesman at the State Department Mark Toner, said: “Obviously, we're talking about … Afghanistan, the situation there, the spill-over into the FATA [Federally Administered Tribal Areas] and how to really better engage. And in fact, we've seen some successes on that front in recent weeks on terrorism.”

The State Department confirmed that both governments will come to the table to discuss issues of common concern and shared responsibility.

Labels: Hillary Clinton, Pakistan, Strategic Dialogue, United States

From The Hindu

Touching upon the outcome of a wide range of trade and investment related interactions between India and the United States Industry Minister Anand Sharma, on Thursday said, “I believe through these meetings we have been able to build the groundwork of an excellent trade and commercial outcome for the forthcoming visit of President Obama to India.”

A key achievement that came during this visit to the U.S. was the “Framework for Cooperation on Trade and Investment,” which was signed by Mr. Sharma and the U.S. Trade Representative Ronald Kirk on Wednesday. The agreement aims to strengthen bilateral cooperation between India and the U.S., building on rapid growth between the two countries in recent years, according to an official statement.

The signing of the Framework and the announcement of the Bilateral Cooperation on Small- and Medium-Enterprise Development came during the meeting of the Private Sector Advisory Group (PSAG) which was convened in Washington this week.

Addressing the press in Washington Mr. Sharma said “My meetings have been useful, I can term it as a successful visit because we have taken forward what we had discussed at the Indo-U.S. Trade Policy Forum which had met in New Delhi in the third week of October 2009.”

India and the U.S. had then agreed to negotiate and finalise the Framework and undertake a number of initiatives for increasing opportunities for private sector partnerships “in infrastructure, green technologies, geo-technologies, innovation, creating awareness on IPR; also for bilateral cooperation in energy, in information technology, environmental services industries and working empower women and disadvantaged groups, and small and medium enterprise development,” Mr. Sharma said.

Underscoring the focus on Small and Medium Enterprises, he added, “Ron Kirk and I have also announced the launch of an Indo-U.S. initiative integrating U.S. and Indian small businesses into the global supply chain. This initiative aims to expand trade and job creating opportunities for the U.S. and Indian small and medium sized companies.”

Industrialist and President of the Confederation of Indian Industry (CII) Venu Srinivasan said to The Hindu that at the outset it may be preferable that this initiative focus on medium-sized enterprises only, given the high transactions costs of international joint ventures, something that “smaller companies may not have the wherewithal for”.

Mr. Sharma also emphasised India’s position on the need to take forward the ongoing Doha Round of the WTO. He said that he had impressed upon the officials he met in the U.S. the need to “enhance global trade by putting in place an ambitious but also fair and equitable multilateral trade regime which would strengthen global commerce at a time when the world was challenged by severe economic crises.” Even the most conservative studies of trade place the annual addition to GDP that would result from the creation of a WTO-based trade regime at $600 bullion”, he added.

Agriculture also featured prominently in Mr. Sharma’s meetings in Washington, wherein he said India considered “agricultural cooperation and food security… important for our bilateral engagement and significantly important for the world considering the fact that in the first decade of the 21{+s}{+t} century there is hunger, there are more people globally who have been pushed into the net of hunger because of what has happened in the last two years.”

Labels: "Framework for Cooperation on Trade and Investment, Anand Sharma, India, United States

From The Hindu

At a recent briefing on the trade agreements signed between India and the United States Industry Minister Anand Sharma and India’s Ambassador to the U.S. Meera Shankar answered questions from the media on a range of related issues.

On India’s perception of overly restrictive export controls in the U.S., particularly with regard to high-technology, dual-use items, Mr. Sharma said, “Yes, there have been some concerns in India on some of the [control], which I have in the past conveyed to Ambassador Ron Kirk. We are clear that protectionism of any kind, or any moves which discourages economic engagement, or weakens it, are counterproductive.” Ms. Shankar added that the Obama administration was in the process of undertaking a high-powered review of the entire legal and regulatory framework for export controls and she expected the outcome to provide some positive momentum.

Reacting to a question on the civilian nuclear agreement Ms. Shankar said, “I can say that discussions putting in place the remaining steps to facilitate full implementation of the nuclear agreement are ongoing, they are making good progress, and we hope that we will be able to finalise all issues soon.”

To a question on India’s role in Afghanistan Mr. Sharma clarified, “We will continue despite the attacks that have been mounted, to deter India. We have reaffirmed very forcefully India’s resolve and commitment to continue to help the people of Afghanistan. We have an excellent relationship and communication with the government in Kabul.

Labels: Anand Sharma, export controls, India, protectionism, United Staes