Friday, September 24, 2010

 

Microfinance deployed in developed world too



From The Hindu

Microfinance, widely acknowledged as an innovative tool to supply entrepreneurs of the developing world with access to credit, is now breaking new ground in the developed world too – in New York City.

Grameen America, a microfinance organisation headquartered in NYC, and Citi Microfinance, part of Citigroup, on Monday announced that their joint project to provide low-income entrepreneurs in the U.S. with savings accounts from Citi to complement microloans from Grameen America had led to the creation of more than 2,500 savings accounts in Upper Manhattan and Queens areas.

Under this scheme the borrower-clients of Grameen America may use their Citi savings accounts to “build their assets as well as access mainstream financial services, such as ATM networks,” a spokesperson for Citi said.

Shah Newaz, CEO of Operations at Grameen America, said his organisation provided “micro-loans to our low-income clients so that they can start or invest in an income generating activity. Citibank has developed a system to extend their savings service to our clients in Queens and Manhattan.” He added that Grameen America clients were able to increase their income through such micro-loans and the savings service from Citi enabled them to form create assets and thereby escape poverty.

In a statement Bob Annibale, Global Director of Citi Microfinance, said, “The Citi-Grameen partnership is an important one at a time when the economic slowdown has shown how critical it is to build savings where possible... This partnership reflects Citi’s commitment to encouraging underserved individuals save and build assets.”

According to Grameen America a majority of borrowers lacked access to mainstream financial services and frequently turned to wealth depleting, high-cost financial service alternatives such as payday lenders.

Yet using the Grameen group lending model, developed and refined over 30 years by the Grameen Bank in Bangladesh, residents of NYC are now enrolled in the peer group system wherein members encouraged, supported and learned from each other.

Since January 2008, Grameen America – also established by Grameen Bank founder Muhammad Yunus – has disbursed over $9 million in microloans to over 4,000 micro-entrepreneurs. Mr. Yunus serves as Chairman of the Board of Directors of Grameen America. Citi Microfinance provides more than 100 microfinance institutions and networks in over 40 countries with products and services such as financing, access to capital markets, transaction services, to credit, savings, remittances and insurance.

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Three more Indian-Americans in Team Obama

From The Hindu

After a slight lull over the summer, President Barack Obama's drive to recruit persons of Indian origin into his government is back to full throttle.

This week the White House announced a string of appointments to the President's Advisory Commission on Asian Americans and Pacific Islanders and they included three Indian-Americans: Farooq Kathwari, Amardeep Singh and Sunil Puri.

Mr. Kathwari, Chairman, President and CEO of the Ethan Allen Interiors company, serves on many non-for-profit organisations including the chair of the Kashmir Study Group, the White House said. It added that he was also a member of the Council on Foreign Relations, a Director of the International Rescue Committee at Georgetown University and a Director of Refugees International.

Mr. Kathwari's personal story is also an unusual one — despite family opposition his son Imran went to fight the Russians in Afghanistan in the 1980s and died in a mortar attack. Mr. Kathwari was quoted as saying, “My son is lying in rubble in Afghanistan.” However it spurred him on to get involved, “not in Afghanistan but in Kashmir, as a diplomat of sorts.”

Mr. Kathwari, who was a student activist in Kashmir, was said to have brought together a group of predominantly American politicians, academics, and former diplomats in 1996 to suggest ways to end the civil strife.

Speaking in an interview years ago Mr. Kathwari said: “I wanted to try to save parents from the agony of losing a child. And Kashmir helps me maintain perspective.”

Another Obama appointee this week was Amardeep Singh, co-founder and Director of Programmes at the Sikh Coalition, the U.S.' largest Sikh civil rights organisation according to officials. Mr. Singh has also served as a researcher at Human Rights Watch, where he authored a report, “We are not the enemy: Hate crimes against Arabs, Muslims, and those perceived to be Arab or Muslim after September 11.”

Mr. Singh was also an Adjunct Professor at Columbia University's Center for the Study of Ethnicity and Race where he taught a course on the intersection of ethnic identity and the law, the White House said.

A third Indian-American appointee to the President's Advisory Commission is Sunil Puri, head of the First Rockford Group, Inc. Company, a real estate development firm he founded in 1984. Mr. Puri is a Board Member for the Rockford Area Economic Development Council and the Rockford College Board of Trustees.

He was born in Mumbai in 1960 and immigrated to the U.S. in 1979. According to reports, Mr. Puri has been active in Democratic politics for over 20 years, even advising President Clinton and travelling to India with him in 2000 and 2001.

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Saturday, September 18, 2010

 

India-U.S. discussions in full swing prior to Obama visit


From The Hindu

In an unmistakable indication of backroom discussions shifting up a gear before President Barack Obama’s India visit in November, the State Department announced today that United States National Security Advisor General Jim Jones met with Indian Foreign Secretary Nirupama Rao to “continue preparations for the President’s upcoming visit”.

According to an official statement General Jones and Ms. Rao reviewed the progress being made in a number of areas, including agriculture, education, economic cooperation, and security. Additionally, General Jones and Ms. Rao were said to have discussed other developments in South Asia, noting their “mutual desire for stability”.

Ms. Rao is in Washington principally to keep the discussions moving forward and it has been announced that next week, Indian Industry Minister Anand Sharma will be in town to similarly add momentum to bilateral trade policy discussions.

The visiting Indian officials were said to be holding meetings with senior U.S. counterparts, including Under Secretary for Political Affairs William Burns, Under Secretary for Defence Michèle Flournoy, Under Secretary of the Commerce Department’s Bureau of Industry and Security Eric Hirschhorn, and Chairman of House Foreign Affairs Committee Howard Berman.

While it would appear that the U.S. has in general had a positive attitude towards the bilateral relationship, the Indian side has been pressing for further progress with issues such as the H1-B visa fee hike, India’s interest in securing U.S. support for a permanent seat on the U.N. Security Council and its hope that export control restrictions would be eased.

Nuclear liability bill, counter-terrorism on agenda

According to sources, counter-terrorism, and in particular, its cross-border aspects including infiltration, have been an important component of the ongoing talks between the two countries.

So has the civil nuclear liability bill, even if progress on the ground in this area was expected to be gradual. In this sphere, the main argument that India has sought to convey to the U.S. was that the liability bill passed in the Indian Parliament did not contain provisions that were additional to what already existed in common law and did not contradict the Convention on Supplementary Compensation.

The hope was also that all nuclear suppliers participating in India’s nuclear industry would operate on a level playing field, according to sources, and that India was open to continuing a dialogue with the supplier companies.

The U.S.-India dialogue will also cover some new policy subjects of mutual interest such as the governance of the global commons, including maritime security and antipiracy, and ocean domain awareness, it was learned.

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Three more Indian-Americans in Team Obama

From The Hindu

After a slight lull over the summer, President Barack Obama's drive to recruit persons of Indian origin into his government is back to full throttle.

This week the White House announced a string of appointments to the President's Advisory Commission on Asian Americans and Pacific Islanders and they included three Indian-Americans: Farooq Kathwari, Amardeep Singh and Sunil Puri.

Mr. Kathwari, Chairman, President and CEO of the Ethan Allen Interiors company, serves on many non-for-profit organisations including the chair of the Kashmir Study Group, the White House said. It added that he was also a member of the Council on Foreign Relations, a Director of the International Rescue Committee at Georgetown University and a Director of Refugees International.

Mr. Kathwari's personal story is also an unusual one — despite family opposition his son Imran went to fight the Russians in Afghanistan in the 1980s and died in a mortar attack. Mr. Kathwari was quoted as saying, “My son is lying in rubble in Afghanistan.” However it spurred him on to get involved, “not in Afghanistan but in Kashmir, as a diplomat of sorts.”

Mr. Kathwari, who was a student activist in Kashmir, was said to have brought together a group of predominantly American politicians, academics, and former diplomats in 1996 to suggest ways to end the civil strife.

Speaking in an interview years ago Mr. Kathwari said: “I wanted to try to save parents from the agony of losing a child. And Kashmir helps me maintain perspective.”

Another Obama appointee this week was Amardeep Singh, co-founder and Director of Programmes at the Sikh Coalition, the U.S.' largest Sikh civil rights organisation according to officials. Mr. Singh has also served as a researcher at Human Rights Watch, where he authored a report, “We are not the enemy: Hate crimes against Arabs, Muslims, and those perceived to be Arab or Muslim after September 11.”

Mr. Singh was also an Adjunct Professor at Columbia University's Center for the Study of Ethnicity and Race where he taught a course on the intersection of ethnic identity and the law, the White House said.

A third Indian-American appointee to the President's Advisory Commission is Sunil Puri, head of the First Rockford Group, Inc. Company, a real estate development firm he founded in 1984. Mr. Puri is a Board Member for the Rockford Area Economic Development Council and the Rockford College Board of Trustees.

He was born in Mumbai in 1960 and immigrated to the U.S. in 1979. According to reports, Mr. Puri has been active in Democratic politics for over 20 years, even advising President Clinton and travelling to India with him in 2000 and 2001.

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U.S. census report reveals spike in poverty levels


From The Hindu

The United States Census Bureau has revealed that poverty in the country jumped significantly in 2009, reflecting the debilitating effects of the recession on those at the bottom of the economic ladder.

In news that would add to the worries of President Barack Obama, who is struggling to get various stimulus bills passed by Congress, the USCB said the official poverty rate in 2009 was 14.3 per cent — up from 13.2 per cent in 2008.

The report says this constitutes the second “statistically significant annual increase in the poverty rate since 2004”, with 43.6 million people in poverty in 2009, up from 39.8 million in 2008. In terms of absolute numbers of people in poverty, the 2009 rise was the third consecutive one.

The most recent results also set an egregious record for “the largest number in the 51 years for which poverty estimates have been published”, said the USCB.

Touching upon trends that are likely to evoke serious concern from policymakers the USCB noted between 2008 and 2009, the poverty rate for children under the age of 18 increased from 19 per cent to over 20 per cent. This implies that since the onset of the recession in 2007, 2.1 million more children have been thrust into poverty.

The agency report also indicates the close linkages between access to healthcare and poverty levels, pointing out that the number of people without health insurance coverage rose from 46.3 million in 2008 to 50.7 million in 2009. This represented a percentage increase from 15.4 per cent to 16.7 per cent over the same period.

Asians as an ethnic group were the only category of respondents for whom the numbers of those without healthcare insurance declined. For White, African-American and Hispanic Americans the numbers increased. Also, while real median income did not change for Asian and Hispanic-origin households between 2008 and 2009, it declined for African-American and White households.

The USCB results are likely to strengthen the White House's case for more policy measures aimed at protecting households and small businesses.

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Thursday, September 16, 2010

 

Nirupama, Burns discuss preparation for Obama visit


From The Hindu

India's Foreign Secretary Nirupama Rao on Thursday met her U.S. counterpart, Under-Secretary William Burns, according to the State Department.

A senior official on the Indian side told The Hindu that the Foreign Secretary-level dialogue was close to President Barack Obama's visit to India — slated for early November.

He said the talks were thus “preparatory to the summit,” and they also focussed on reviewing the issues that Secretary of State Hillary Clinton and External Affairs Minister S.M. Krishna discussed a couple of months ago, as part of the Indo-U.S. Strategic Dialogue of June.

Industry Minister Anand Sharma and senior Indian officials will be in Washington for a slew of meetings over the coming week.

India's Ambassador Meera Shankar told at the Baltimore Council on Foreign Affairs this week, “We hope that President Obama's upcoming visit would prove to be a major step forward in not only consolidating what our two democracies have jointly achieved but also for working together in areas where we are yet to see concrete progress, including genuine reform of international institutions with India given its due place.”

In a defining speech made on the sidelines of the Strategic Dialogue, Mr. Burns had specifically reiterated the U.S.' support for India holding a permanent seat on the United Nations Security Council.

Ms. Shankar touched upon that theme again in her speech, saying “The growing support for a permanent seat for India in the U.N. Security Council would no doubt go a long way in enabling India to play its role to its full potential and in realising the idea of India-U.S. relations being a key strategic partnership of the 21st century.”

She added that India keenly looked forward to the visit of the President. The state visit of Prime Minister Manmohan Singh to Washington last year had “focussed on going beyond just the bilateral dimensions of this relationship to forge a global partnership.”

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Tea Party sweeps primaries


From The Hindu

In a string of shock victories, far-Right candidates supported by the Tea Party movement trounced official nominees in the Republican Party's primary elections across the United States this week. Major upsets occurred in Delaware and New York and a tighter-than-expected contest was on the cards in New Hampshire.

The Republican and Democratic parties are holding intra-party primary elections to decide their candidates for the mid-term elections to the Senate and the House of Representatives in November.

In Delaware, Sarah Palin favourite Christine O'Donnell knocked out Congressman Michael Castle. Mr. Castle, who has enjoyed success in elections for over 40 years, including two terms as Governor, garnered 47 per cent of the popular vote compared to Ms. O'Donnell's 53 per cent.

In New York, maverick and rank outsider Carl Paladino ended the hopes of Rick Lazio, who failed to capitalise on his party's backing. Media reports described the staunchly conservative newcomer as a man who had “forwarded e-mails to friends containing racist jokes and pornographic images, [and] espoused turning prisons into dormitories where welfare recipients could be given classes on hygiene”.

In New Hampshire, too, conservative candidate Ovide Lamontagne was closing the gap on Wednesday morning in the race with his mainstream Republican rival and former state Attorney-General Kelly Ayotte. Mr. Lamontagne was described as a devout Catholic, a fiscal and social conservative and a vocal opponent of same-sex marriage and abortion.

Even as news of their candidates' defeats streamed in, Republican Party leaders weighed in, fretting over the adverse impact this could have on the party's prospects in the November mid-term elections.

Karl Rove, strategist and advisor to the former President, George W. Bush, was quoted saying to a television channel, “We were looking at eight to nine seats in the Senate. We're now looking at seven to eight. In my opinion, this is not a race we're going to be able to win.”

There were however a few exceptions, particularly on the Democratic side. Congressman Charles Rangel of New York, described as a “legendary figure in city and state politics”, triumphed in a six-way contest despite being plagued by a raft of ethics charges.

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Wednesday, September 15, 2010

 

Arrested filmmaker has left U.S.

From The Hindu

Vijay Kumar, the Indian filmmaker arrested in the United States and jailed for 20 days for carrying brass knuckles and “Jihadi literature” in his baggage, has left the U.S. for India, his lawyer has confirmed.

Speaking to The Hindu on Tuesday evening Mr. Kumar’s attorney, Grant Scheiner, said “Mr. Kumar is safely out of Houston.” He hoped that appropriate action would be taken to ensure that such an event did not occur again in the future.

Mr. Kumar’s departure from Houston marks the culmination of a difficult few weeks for him. Trapped in the U.S., initially under suspicion of terror related activities although his intentions were entirely benign, Mr. Kumar faced an ordeal in a Texas jail, where he had to subsist on only bread and water. He also had no certainty as to when he would be released.

Mr. Scheiner had earlier said that Mr. Kumar’s arrest was a mistake of law combined with excessive caution in a post-9/11 era, and as a result he had been slapped with both a criminal case, for possessing the brass knuckles, and an immigration case, after his visa revoked by the immigration authorities.

While Mr. Kumar had unwittingly violated a Texas law forbidding persons from carrying brass knuckles at airports, he had entirely abided by federal law on this matter. The real problem, his attorney earlier said, was that federal law was not consistent with the state law.

The suspicions of terror-related activities also turned out to be entirely unfounded, with the ironic twist that Mr. Kumar’s so-called “Jihadi literature” was material that Mr. Kumar was carrying for use during a lecture he was set to deliver to the Hindu Congress of America on interfaith discussion between Hindus and Muslims and the harms of terrorism.

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Anti-trafficking aid to India drops

From The Hindu

The United States' support to India and other countries for the purpose of combating the trafficking in persons (TIP) has dropped from its highs in 2004 and 2005, a recent report has revealed.

A Congressional Research Service report, ‘Trafficking in Persons: U.S. Policy and Issues for Congress,' said that India was among several of the countries selected in 2004 by former President George W. Bush as being eligible to receive “a combined total of $50 million in strategic anti-TIP assistance.”

However, the aid to the countries, which in addition to India included Brazil, Cambodia, Indonesia, Mexico, Moldova, Sierra Leone, and Tanzania, “is now on a downward trajectory,” the report argued. It added that the anti-TIP aid had “spiked in FY2004 and FY2005.”

According to the study, Mr. Bush had chosen the countries based on the severity of their trafficking programs, as well as their willingness to cooperate with U.S. agencies to combat the problem.

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U.S. technology delegation heading to India


From The Hindu
Aneesh Chopra, Chief Technology Officer in the Obama administration, and Alec Ross, the State Department’s Senior Advisor for Innovation, will lead a “technology delegation” of United States business and thought leaders to New Delhi and Rajasthan, it has been announced.

A statement from the office of the State Department spokesman said that the delegation was “an important first step of the U.S.-India Innovation Exchange, announced by Secretary of State Hillary Rodham Clinton and Foreign Minister S.M. Krishna during the June 4 U.S.-India Strategic Dialogue”.

The Strategic Dialogue identified technology as a vital common interest between the two countries and it was founded upon a shared innovation-based culture devoted to cutting-edge research and visionary entrepreneurship, officials said.

Citing the global leadership of the U.S. and India in technology sectors such as software and computing, and telecommunications and energy, the State Department said this particular delegation was designed to leverage U.S. and Indian expertise to help produce real-world technology solutions in three areas — energy, education and e-Governance.

The meetings with Indian business and government leaders would help to spur “productive discussion and thought around identifying new projects” and they would aim to deliver projects ready for investment and ultimate market entry.

Officials also said that project ideas would likely take on the form of public-private partnerships, private-private joint ventures, and “working groups dedicated to finding new ways to tackle big problems”. They added that the U.S. was “optimistic about the potential of new projects arising from the Delegation”.

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U.S. Ambassador for global women’s issues in India


From The Hindu

Melanne Verveer, Ambassador-at-Large for Global Women’s Issues is visiting India this week, the State Department announced. She will also be visiting China after her meetings in India.

A statement from the office of the State Department Spokesman notified that Ms. Verveer is in India this week, during September 11-15 and would be meeting with various self-help groups, businesswomen and NGOs working on human rights and women’s empowerment issues in Chennai.

Further, the Ambassador would stop by New Delhi, where she will “continue her work on the advancement of the U.S.-India Strategic Dialogue on Women's Empowerment,” officials said.

They added that the Strategic Dialogue, which was kicked off earlier this year in Washington, had led to an unprecedented focus on women’s empowerment in the history of the U.S.-India relationship.

With this backdrop, Ms. Verveer is also scheduled to deliver a keynote address at the Asia Women's Leadership Regional Summit, an event that Secretary of State Hillary Clinton proposed organising during her visit to India in 2009.

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Arrested Indian filmmaker to leave U.S.


From The Hindu

Vijay Kumar, the Indian filmmaker arrested in the United States and jailed for 20 days for carrying brass knuckles and “Jihadi literature” in his baggage, will be leaving the U.S. for India sometime on Monday, his lawyer has confirmed.

Speaking to The Hindu on Sunday evening, Mr. Kumar’s attorney Grant Scheiner said he had "learned that Vijay Kumar is scheduled to leave Houston within the next 24 hours”. He added that that was all the information he had been given at the time.

Mr. Scheiner added that Mr. Kumar "should arrive back in New Delhi in approximately one week's time" as he had two stops to make before returning to India. He also said there were "people watching the process, to make certain that Mr. Kumar leaves Houston safely".

In a case that exemplifies "heightened suspicion after 9/11", according to Mr. Scheiner, Mr. Kumar had to undergo an ordeal in a Texas jail, subsisting on only bread and water during his incarceration and having no certainty as to when he would be released.

Although Mr. Kumar’s arrest was a “mistake of law”, he was unable to obtain an earlier acquittal because he was “tied into a procedural knot by U.S. law”, Mr. Scheiner said. Particularly baffling — and an indicator of excessive caution in a post-9/11 era — was the fact that Mr. Kumar had his visa revoked by immigration authorities and then was jailed for not having a valid U.S. visa.

Following federal law

While there was no doubt that Mr. Kumar had contravened a Texas law forbidding persons from carrying brass knuckles at airports, he was simply following federal law, his attorney earlier said, which was anyway not consistent with the state law.

The irony in the other piece evidence against Mr. Kumar — the so-called “Jihadi literature” — was that Mr. Kumar was carrying the material for use during a lecture he was set to deliver to the Hindu Congress of America on interfaith discussion between Hindus and Muslims and the harms of terrorism.

When asked about the overzealous response of the U.S.’ homeland security system in Mr. Kumar’s case, Mr. Scheiner revealed that at Mr. Kumar’s immigration hearing, the government attorney actively “opposed [Mr. Kumar’s] voluntary departure, citing a threat to national security”.

If Mr. Kumar was not allowed to leave voluntarily and was instead deported, he would never have been able to obtain a U.S. visa again. Fortunately for him, this scenario was averted as the judge in the immigration case did not support the prosecutor’s claim that Mr. Kumar might have been carrying explosives.

According to Mr. Scheiner, the judge said that the investigation of Mr. Kumar’s luggage had clearly yielded a “false positive” and there was no evidence that Mr. Kumar had carried any explosives.

Mr. Scheiner said the fact that Mr. Kumar posed no terror threat was proved by the response of the judge in the criminal case against Mr. Kumar, who reduced his bail from $50,000 to $5,000 shortly after his arrest.

"He is grateful for all of the world-wide support and is looking forward to having his life return to normal," Mr. Scheiner said.

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No tax breaks for companies "shipping jobs overseas": Obama


From The Hindu

At a rare media briefing United States President Barack Obama reiterated his intention to stop giving tax breaks for companies that created jobs overseas rather than on American soil.

Repeating his words from an economy-focused speech in Parma, Ohio, earlier this week, Mr. Obama said, “Instead of tax breaks that encourage corporations to create jobs overseas, we believe in tax breaks for companies that create jobs right here in the U.S. So we have begun to do that.”

Adding that his administration believed only in investments that would make America more competitive in the global economy, he said that such investments would focus on areas such as education, clean energy, research and technology.

Touching upon policy priorities in this regard Mr. Obama said that it was these principles that guided the government over the last 19 months, and were also the very same principles that formed the basis of the additional economic proposals that he offered during the past week.

Mr. Obama is pushing the U.S. Congress to pass a $50 billion infrastructure investment plan to boost employment and also seeks a permanent expansion of tax credits for companies investing in research and development.

In his Friday briefing he emphasised in particular the need to change the incentives faced by companies that deciding to send jobs overseas: “Let us stop giving tax breaks to companies that are shipping jobs overseas, let us stop incentivizing that,” he said.

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Florida pastor calls off plan


From The Hindu

Terry Jones, the pastor of a 30-member church in Gainesville, Florida, has called off his controversial plans to desecrate a symbol of the Islamic religion on the ninth anniversary of the 9/11 terror attacks, at least for the moment.

After receiving a call from United States Secretary of Defence Robert Gates on Thursday afternoon, urging Mr. Jones not to attack Muslim religious sentiments on Saturday, the pastor agreed to suspend his plans.

According to reports, Pentagon spokesman Geoff Morrell said that in his call to the pastor, “The Secretary expressed his grave concern that going forward would put the lives of our forces at risk, especially in Iraq and Afghanistan, and urged him not to proceed with it. That was the extent of it.”

Shortly after the call the pastor, along with Imam Muhammad Musry of the Islamic Society of Central Florida, issued a press statement saying that he had been in touch with Imam Feisal Abdul Rauf about moving the location of the so called “Ground Zero mosque” and was willing to suspend his plans.

Mr. Jones said, “I will be flying up there on Saturday to meet with the Imam [of] the Ground Zero mosque. He has agreed to move the location. That of course cannot happen overnight... The American people do not want the mosque there and of course Muslims do not want us to [attack their religion].” He said that he had therefore “agreed to cancel our event on Saturday”.

However after Mr. Jones’ press conference, Imam Feisal was reported to have released a statement saying, “I am glad that Pastor Jones has decided not to [proceed]. However, I have not spoken to Pastor Jones or Imam Musry. I am surprised by their announcement.”

Mr. Jones’ actions had earlier elicited condemnations across the board from the U.S. government, with President Barack Obama saying that Mr. Jones’ plans to attack the religion would be a “recruitment bonanza for al-Qaeda”.

Secretary of State Hillary Clinton and commander of U.S. forces in Afghanistan, General David Petraeus had also sharply criticised Mr. Jones’ plans, with General Petraeus expressing concern that they would endanger U.S. troops and the U.S.’ overall military effort.

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Obama's India visit will have deliverables: Crowley


From The Hindu

United States President Barack Obama’s visit to India in November will have "deliverables" although the agenda for his trip is still evolving, a senior State Department official has said.

Speaking at a media briefing P.J. Crowley, State Department spokesman, said he could not confirm any specifics regarding what the key elements of the President’s trip would be, but "I won’t rule out that there will be... deliverables, as we call them, when you have presidential travel to critical countries". Mr. Crowley added that he was aware that the agenda is still being developed for his trip.

In response to a question from The Hindu on whether the nuclear liability bill, the easing of export control restrictions and the future of India’s role in Afghanistan would feature in the discussions, Mr. Crowley said, "I am anticipating a broad agenda, [and] would not be surprised if some of the issues that you have ticked off are part of that discussion." He noted that India as a global player would also be essential in solving the climate change challenge.

Rational Strategy

Responding to a question on what steps the U.S. could take to assuage any anxieties that India might have regarding the denouement in Afghanistan, Mr. Crowley reiterated that the U.S. was "pursuing a regional strategy, which is why we have expanded our discussions with other countries, including Afghanistan, Pakistan, India, and other countries in the region, and we are not ruling out cooperation with Iran when it comes to Afghanistan".

Arguing that the U.S. expected India to develop its own relationship with Afghanistan, the spokesman said it could not be seen within a "zero-sum calculation". He said that if the countries in the region developed trading relationships and economic interests, that could have an impact on reducing regional tensions.

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Thursday, September 09, 2010

 

Indian filmmaker pleads guilty, subsisted on “bread and water”


From The Hindu

Indian filmmaker Vijay Kumar, who was arrested at an airport in Houston for carrying brass knuckles, may be able to leave the United States within “five to seven days”, according to his lawyer. His lawyer also said that Mr. Kumar was forced to survive on bread and water for the last 20 days he spent in jail.

Speaking to The Hindu, Mr. Kumar’s attorney Grant Scheiner said that at a hearing for his client, Mr. Kumar pled no contest to the lesser charge of a misdemeanour and agreed to voluntarily leave the U.S. He was awarded “credit for time served”, which meant that the 20 days he spent in jail would constitute his sentence.

Regarding Mr. Kumar’s condition, Mr. Scheiner said that he was “pretty upbeat” now that there was light at the end of tunnel, although he was disappointed that the authorities had not realised earlier that he posed no terror threat.

Also Mr. Scheiner said that Mr. Kumar had to subsist on bread and water for all 20 days of his imprisonment because he was vegetarian and the jail authorities only supplied him with meals consisting of meat and bread.

Mr. Kumar had earlier faced a more serious felony charge when he was discovered to be carrying brass knuckles packed within his checked-in baggage. While this was completely legal under federallaw, federal law is not consistent with Texas law — which forbids carrying brass knuckles in any baggage or on one’s person — and thus Mr. Kumar had fallen afoul of the latter.

His case was further complicated when what was described as “Jihadi literature” was found in his luggage too. Yet in an ironical twist to the tale, it emerged that the material related to Mr. Kumar’s plans to deliver a lecture to the Hindu Congress of America on interfaith discussion between Hindus and Muslims and the harms of terrorism.

Harder to obtain visa in future

Mr. Scheiner said that despite there being little doubt that Mr. Kumar was not in any way linked to terrorism — even the judge in the criminal case had reduced his bail from $50,000 to $5,000 for that reason — his incarceration for 20 days in a Houston jail reflected “heightened suspicion after 9/11”.

While Mr. Kumar’s voluntary departure from the U.S. still leaves him with the possibility of getting a U.S. visa in the future, Mr. Scheiner said that as a result of his misdemeanour conviction and visa revocation, it would definitely be harder to obtain any U.S. visa.

Providing a rare glimpse at the excessively cautious nature of the U.S. homeland security legal apparatus, Mr. Scheiner said that at Mr. Kumar’s immigration hearing, the government attorney “opposed voluntary departure, citing threat to national security”.

The prosecutor did so on the grounds that the investigation of Mr. Kumar’s luggage left doubt as to whether there might have been explosive residues. However, Mr. Scheiner said, the judge in the case had pointed out that the investigation of the luggage had clearly yielded a false positive test and there was no suggestion that Mr. Kumar had carried any explosives.

At the end of the case, Mr. Scheiner said, it was clear that Mr. Kumar’s arrest was a mistake of law, and he could have been acquitted earlier. His incarceration on the immigration charges also made him lose the will to fight on in the criminal case, and so he was left with a misdemeanour conviction.

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No tax breaks for firms creating jobs outside U.S.


From The Hindu

Persisting with the theme of protecting American jobs, President Barack Obama in his latest speech on the economy said that he would press for tax breaks only for companies that created jobs on U.S. soil and not those that created jobs abroad.

In a series of speeches across the U.S. over the summer, Mr. Obama also specifically mentioned “jobs of the future” going to countries such as India and China, and repeatedly underscored his intention to pre-empt that trend.

Addressing a gathering at Cuyahoga Community College in Parma, Ohio, on Wednesday, Mr. Obama said, “For years, our tax code has actually given billions of dollars in tax breaks that encourage companies to create jobs and profits in other countries. I want to change that.”

He said that instead of tax loopholes that incentivise investment in overseas jobs, he was proposing a more generous, permanent extension of the tax credit that went to companies for all the research and innovation they did in the U.S.

His comments also followed in the wake of steps taken by the U.S. Congress to hike the fees for H1-B and L visas, mostly requested by Indian companies with U.S. operations. Following the passage of this bill and comments by its sponsor, Senator Charles Schumer, criticising companies such as Infosys for being “body shops,” Indian companies and industry bodies such as National Association of Software and Service Companies (Nasscom) had warned of negative fallout of protectionism.

In a reference to White House plans announced this week to help the economy grow and spur hiring by businesses, Mr. Obama noted that it was encouraging companies “to invest more in the U.S.” was the key to job creation.

As part of this plan, all American businesses would be allowed to write-off investments made in 2011, a tax break designed to aid small businesses in upgrading their plants and equipment. Mr. Obama said, “If we are going to give tax breaks to companies, they should go to companies that create jobs in America — not that create jobs overseas.”

He said that in fact making this distinction was one of the key differences between the Republican vision and the Democratic vision for the economy and the country. “That's what this election is all about,” Mr. Obama added.

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Obama condemns pastor's "stunt"


From The Hindu

Joining the widespread condemnation of Florida pastor Terry Jones, for his extreme views against Islam, President Barack Obama on Wednesday said that Mr. Jones’ plans to attack the religion would be a "recruitment bonanza for al-Qaeda".

In an interview with ABC News, Mr. Obama said, there could be serious violence in Pakistan or Afghanistan as a result of such religious intolerance and "this could increase the recruitment of individuals who'd be willing to blow themselves up in American cities, or European cities".

Mr. Obama’s comments join a growing backlash against Mr. Jones, whose plans were earlier sharply criticised by Secretary of State Hillary Clinton and commander of United States forces in Afghanistan, General David Petraeus.

Touching upon the contradiction between Mr. Jones’ views and American values, Mr. Obama said, "I just hope he understands that what he's proposing to do is completely contrary to our values of Americans [and] that this country has been built on the notions of religious freedom and religious tolerance."

Could affect U.S. armed forces

Reflecting prior concerns voiced by General Petraeus Mr. Obama added that as a practical matter, he wanted Mr. Jones to understand that the “stunt” planned to pull could greatly endanger U.S. armed forces in Iraq and Afghanistan. "We're already seeing protests against Americans just by the mere threat that he's making," Mr. Obama added.

In a speech on Wednesday Ms. Clinton had said, Clinton lamented that Mr. Jones’ Dove World Outreach Centre congregation in Gainesville had received much attention for a "distrustful and disgraceful' means of marking the ninth anniversary of the 9/11 terror attacks. She added that it was regrettable that the pastor, with a church of no more than 50 people, could get the world's attention with his plan. "It is not who we are," she said.

General Petraeus had also attacked the pastor’s plans earlier, saying that it would endanger U.S. troops and the overall military effort. "It is precisely the kind of action the Taliban uses and could cause significant problems. Not just here, but everywhere in the world, we are engaged with the Islamic community," the General added.

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India-U.S. cooperation highlighted at homeland security exhibition


From The Hindu

Highlighting the significant potential for defence cooperation between India and the United States, the U.S.-India Business Council has launched a Homeland Security Executive Mission at INDESEC Expo 2010, a major defence industry exhibition in New Delhi.

The latest mission follows closely on the heels of nine aerospace and defence executive missions to India that aim to promote deeper strategic collaboration between the two countries, USIBC said in a statement.

The INDESEC Expo mission, held during September 6-8, comprised some of the U.S.’ top defence, security and cyber security companies, including BAE Systems, Boeing, Connectiva, HBI, Honeywell, IBM, IEM, Implant Sciences, ITT Defense International, Microsoft, Northrop Grumman, Palantir, Pillsbury Winthrop, Raytheon, Steptoe and Johnson, United Technologies Fire and Security and The Cohen Group.

“Just like the 9-11 terrorist attacks in America galvanised the U.S private sector to develop cutting edge technologies in meeting the country’s emerging threats, we believe the same response from Indian industry is occurring after 26/11,” said Admiral James Loy, Senior Counselor at The Cohen Group and a former Deputy Secretary in the U.S Department of Homeland Security.

Admiral Loy added that deeper U.S-India counterterrorism and homeland security cooperation must also focus on developing rapid and coordinated response and recovery capability to deal with future events.

Counterterrorism and intelligence cooperation was an important theme in discussions held between Indian External Affairs Minister S.M. Krishna and U.S. Secretary of State Hillary Clinton during the U.S-India Strategic Dialogue held in June this year.

Following these discussions, the two countries had recently signed the U.S.-India Counterterrorism Cooperation Initiative (CCI), to “enhance collaboration, information sharing and capacity building”.

Speaking about the exhibit in New Delhi Nik Khanna, Director for Aerospace and Defence at USIBC said, “U.S. industry’s participation in and support of India’s homeland security sector will not only provide India with the best equipment, but will also boost job creation in both countries through technology sharing, partnerships and high end manufacturing.”

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Interfaith group condemns pastor


From The Hindu

While a cacophony of extreme views has coloured the debate on the "Ground Zero mosque" and the role of the Islamic religion in America more generally, a rising crescendo of moderate opinion is equally striving to pull the country back from the abyss of intolerance and bigotry.

This week a group of religious leaders congregated in Washington to hold an "emergency summit" to condemn "the derision, misinformation and outright bigotry" targeting Muslims in the United States. A New York Times report quoted one of the leaders, Cardinal Theodore McCarrick, saying, "This is not America... America was not built on hate."

The Christian, Jewish and Muslim preachers jointly affirmed, the report added, that that they were "alarmed that the anti-Muslim frenzy and attacks at several mosques had the potential not only to tear apart the country, but also to undermine the reputation of America as a model of religious freedom and diversity."

Also this week, Imam Feisal Abdul Rauf, the man at the very centre of the Cordoba House Initiative, the Islamic centre to be built two blocks away from the site of the 9/11 attacks, spoke out on the issue in an op-ed in the New York Times.

In the article, Imam Rauf said that while he was "sensitive to the feelings of the families of victims of 9/11", he would proceed with plans to build the centre because if he did not, "we cede the discourse and, essentially, our future to radicals on both sides".

His comments also came closely on the heels of sharp criticism levelled against Terry Jones, a pastor from Florida church, for promising to burn copies of the Quran on the anniversary of the 9/11 attacks this year.

Reflecting possible international repercussions of the proposed action of the pastor, even General David Petraeus, leading U.S. forces in Afghanistan, warned this week that it would "undoubtedly be used by extremists in Afghanistan — and around the world — to inflame public opinion and incite violence". He added that this would certainly endanger the lives of American soldiers, a sentiment reflected by comments from the White House and State Department as well.

The inter-faith congregation also denounced the radical approach of Mr. Jones, saying in their joint statement, "We are appalled by such disrespect for a sacred text that for centuries has shaped many of the great cultures of our world."

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Blake non-committal on TAPI pipeline


From The Hindu

Reacting to an announcement by Turkmenistan of a pipeline project between itself, Afghanistan, Pakistan and India, Robert Blake, United States Assistant Secretary of State for South and Central Asia, said that while he thought it was a good idea in principle, “it will be up to the governments themselves to make some decisions on these very important matters, and also to attract commercial financing”.

In an interview with Kommersant in Moscow, Mr. Blake said the U.S. had heard about the proposed pipeline but did not have any details so far about “exactly what they want to do”. He added that in his view, the project was still very much in a preliminary stage.

Kommersant quoted Mr. Blake as saying, “Many many details need to be worked out, not the least of which will be the exact route for such a pipeline, the security arrangements, and also whether they will be able to attract commercial financing for this project.”

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Sequence of failures, says BP


From The Hindu

A string of eight serious failures within the Deepwater Horizon oil rig led to its explosion and the subsequent large-scale pollution of the Gulf of Mexico, said an internal investigation report by BP.

The findings of the "Accident Investigation Report" released by BP this week, may be considered compelling evidence for an overhaul of both BP’s internal systems as well as regulatory oversight for the oil industry.

In the report, the investigators said, "No single factor caused the Macondo well tragedy. Rather, a sequence of failures involving a number of different parties led to the explosion and fire which killed 11 people."

Further the report concluded that decisions made by "multiple companies and work teams" contributed to the accident which it says arose from "a complex and interlinked series of mechanical failures, human judgments, engineering design, operational implementation and team interfaces".

Among the key failures that led to the explosion, the report cited cement and shoe track barriers at the bottom of the well that failed to contain hydrocarbons within the reservoir; the results of negative pressure tests being accepted by BP and Transocean despite well integrity not being established; the Transocean rig crew failing to recognise and act on the influx of hydrocarbons into the well; gas being vented directly on to the rig rather than being diverted overboard; gas flowing into the engine rooms through the ventilation system created potential for ignition; and the rig’s blow-out preventer not activating automatically to seal the well.

Role of other parties

Emphasising the role of other parties besides BP, its current CEO Bob Dudley said: "We have said from the beginning that the explosion on the Deepwater Horizon was a shared responsibility among many entities." He said the report made that conclusion even clearer, presenting a detailed analysis of the facts and recommendations for improvement both for BP and the other parties involved.

However, Mr. Dudley said, "We have accepted all the recommendations and are examining how best to implement them across our drilling operations worldwide," reiterating that BP "deeply [regretted] this event [and] sought throughout to step up to our responsibilities".

The report also proposed 25 recommendations designed to prevent a recurrence of such an accident, BP said, and they were directed at strengthening assurance on blow-out preventers, well control, pressure-testing for well integrity, emergency systems, cement testing, rig audit and verification, and personnel competence.

The company said it expected a number of the investigation report’s findings to be considered relevant to the oil industry more generally and for some of the recommendations to be widely adopted.

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India-based multinationals nominated for U.S. award


From The Hindu

General Electric Company (India) and PepsiCo (India) are among twelve finalists selected for the United States Secretary of State’s prestigious 2010 Award for Corporate Excellence (ACE).

The companies were chosen from a “record number” of 78 nominations submitted by American ambassadors around the world, a primary qualification for nomination being the requirement that the companies were international business leaders who recognised the role of U.S. businesses abroad as good corporate citizens.

Regarding the nomination of GE in India the State Department said that it had been nominated for fostering of local partnerships and volunteerism, supporting health, education, innovation and disaster recovery projects across India; and for “exemplary” employment practices and the promotion of cleaner, more energy efficient products.

PepsiCo India, officials said, had furthered the cause of environmental sustainability through water conservation efforts that had benefited small and marginal farmers. It was also nominated for supporting the health and well-being of local communities and providing important employment opportunities through training with a focus on diversity and inclusion.

Other U.S. based companies with operations abroad were nominated too, including Alta Ventures in Mexico, Cisco in Israel Coca-Cola in Swaziland, Denimatrix in Guatemala Fiji Water in Fiji, Intel in Costa Rica, Mars, Inc. in Ghana, Qualcomm in China, Synopsys in Armenia, and Tang Energy in China.

The State Department noted that the Secretary of State had awarded the ACE since 1999 to commemorate U.S. businesses abroad for not only good corporate citizenship, but also innovation, and democratic principles.

The 2010 ACE winners will be announced at the annual ceremony hosted by the Secretary of State later this fall, officials said.

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Anti-segregationist Thomas passes away

From The Hindu

Jefferson Thomas, a key figure in the anti-segregation civil rights movement in the United States, has died at the age of 67 in Columbus, Ohio. Mr. Thomas was most known for being a member of the so-called “Little Rock Nine” group of students, who integrated Central High School in Little Rock, Arkansas, back in 1957,

Mr. Thomas died of pancreatic cancer on Sunday, said Carlotta Walls LaNier, President of the Little Rock Nine Foundation.

The fight of the Little Rock Nine was a litmus test of the government’s intentions to implement a 1954 Supreme Court order that banned racial segregation in the country’s public schools. Many schools especially in the south refused to end segregation, entailing not only lawsuits but also violence.

In Arkansas the use of force became the order of the day, with the state Governor Orval Faubus sending National Guard troops to block Mr. Thomas and his friends from entering the school in September 1957.

The nine students African-American students were caught in the middle, “corralled by a spitting and rock-throwing mob of white protesters,” while soldiers occupied the school halls and controlled student movements within the school.

Remarking on Mr. Thomas’ passing, President Barack Obama said, “Michelle and I are saddened by the passing of Jefferson Thomas... He had the courage to risk his own safety, to defy a governor and a mob, and to walk proudly into his school even though it would have been “far easier to give up and turn back.”

For their far-reaching actions, President Bill Clinton presented the members of the Little Rock Nine with Congressional Gold Medals on the 40th anniversary of their enrolment in 1999. The others in the group were Ms. LaNier, Melba Patillo Beals, Minnijean Brown Trickey, Elizabeth Eckford, Ernest Green, Gloria Ray Karlmark, Terrence Roberts and Thelma Mothershed Wair.

Mr. Clinton said on Monday that Mr. Thomas was “a true hero, a fine public servant, and profoundly good man.” Mr. Obama noted that his act of civil disobedience in pursuit of an equal education had helped open the doors of opportunity for their generation and for those that followed.

“The searing images of soldiers guarding students from those days will forever serve as a testament to the progress we've made, the barriers that previous generations have torn down, and the power of ordinary men and women to help us build a more perfect union,” he said.

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Saturday, September 04, 2010

 

A starry-eyed mission


From The Hindu

The sun — like a benevolent god, it shines down upon the Earth and sustains all life, and god-like, it has also been beyond the reach of human endeavour. At least until now.

This week, the National Aeronautical and Space Administration (NASA) announced its most ambitious space exploration project yet — to send a probe to our nuclear-powered star by the year 2018.

In developing the path-breaking mission, called Solar Probe Plus, NASA said it was hoping to encounter and study the sun "closer than ever before". The unprecedented project is slated to launch no later than 2018 and will send a small car-sized spacecraft across nearly 150 million kilometres to "plunge directly into the sun’s atmosphere" four million miles above the star’s surface.

The craft would have to withstand temperatures exceeding 2550 degrees Fahrenheit and blasts of intense radiation and to do so, it would be constructed using a revolutionary carbon-composite heat shield.

If the mission succeeds, the spacecraft will have an “up close and personal view of the sun,” NASA said, and it would enable scientists to better understand, characterise and forecast the radiation environment for future space explorers.

Dick Fisher, director of NASA’s Heliophysics Division, said, “The experiments selected for Solar Probe Plus are specifically designed to solve two key questions of solar physics — why is the sun's outer atmosphere so much hotter than the sun’s visible surface and what propels the solar wind that affects Earth and our solar system?" He added that scientists had struggled with such questions for decades and this mission would finally provide answers.

In particular, NASA noted that a mission to provide such measurements was first recommended in 1958 by the National Academy of Science’s “Simpson Committee", and since then NASA had conducted several studies of possible implementations of a Solar Probe mission.

Five science investigations

To make this historic project a reality, NASA said it had selected five science investigations from a 2009 list of proposals that it had called for. The space agency said the total dollar amount for the five selected investigations was approximately $180 million for preliminary analysis, design, development and tests.

Among the selected proposals were studies that proposed to examine particles in solar wind, telescopes designed to make three dimensional images of the sun’s corona, and projects that sought to measure energy fields, radio emissions, and shock waves in the sun’s atmospheric plasma.

An Indian-American scientist on the Solar Probe Plus team, Madhulika Guhathakurta, said, "This project allows humanity's ingenuity to go where no spacecraft has ever gone before... For the very first time, we'll be able to touch, taste and smell our sun."

NASA noted that the Solar Probe Plus mission was part of its "Living with a Star" programme, designed to understand aspects of the sun’s and Earth’s space environment that affected life and society.

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Arrested filmmaker "tied into procedural knot" by U.S. law

From The Hindu

In a turn of events that would appear baffling to most non-lawyers Vijay Kumar, the Indian filmmaker arrested at an airport in Houston for carrying brass knuckles, had his visa revoked by the immigration authorities and then was deposited in jail for not having a valid U.S. visa.

In his second interview with The Hindu Mr. Kumar’s lawyer, Grant Scheiner, said that U.S. legal rules had literally “tied him into a procedural knot, we are trying to untie that knot.” Mr.Scheiner said that while the U.S. government reserves the right to revoke visas at any time for any reason or no reason at all, the result for Mr. Kumar is that he not only has a criminal case to contend with, but an immigration case as well.

The criminal case against Mr. Kumar relates to his possession of a set of brass knuckles while in a secured premises, namely George Bush Intercontinental Airport in Houston. Under Texas law, such possession is tantamount to a third-degree felony with a prison sentence anywhere between two and ten years.

However Mr. Scheiner said that in Mr. Kumar’s case such a sentence may be unlikely because it was usually not applied when the defendant could show that he had made a mistake in interpreting the law as a result of misreading another official guideline.

In this case Mr. Kumar was carrying the brass knuckles packed within his checked-in baggage, and under federal law that is completely legal. Yet because federal law is not consistent with Texas law – which forbids carrying brass knuckles in any baggage or on one’s person – Mr.Kumar fell afoul of the latter.

Thus Mr. Kumar remains in jail awaiting his September 8 criminal hearing, Mr. Scheiner said, and on that day the legal team will attempt to have the third-degree felony charge reduced to a misdemeanour.

If the court agrees to this lesser charge, the sentence may be no more than “taking credit for time served,” which, according to Mr. Scheiner, implies that Mr. Kumar would simply have to remain in custody for as long as it takes for the authorities to put him on a flight back to his home in Mumbai.

Also, Mr. Scheiner emphasised, under this scenario Mr. Kumar would be departing voluntarily, an important step if Mr. Kumar was to have the right to ever reapply for a U.S. visa.

While an alternative scenario was not likely, Mr. Scheiner said that if the court decided not to reduce the charge to a misdemeanour or for some reason Mr. Kumar decided not to plead guilty and fight the case instead, it could go on for months and Mr. Kumar may face a much longer time in jail.

In any event if Mr. Kumar decided to fight the case, and it dragged on for more than 90 days, then Mr. Kumar would face involuntary, not voluntary departure – and in that case would never be able to obtain a U.S. visa again.

A further update is expected on or after September 8.

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U.S. joblessness edges up

From The Hindu

The unemployment situation in the U.S. economy persisted at a low-level equilibrium in August, with non-farm jobs dropping by 54,000 and the overall unemployment rate climbing by one percentage point to 9.6 per cent, or 14.9 million unemployed persons.

According to the monthly figures released by the U.S. Bureau of Labour Statistics (BLS) private payrolls however showed some positive growth, bringing cheer to markets at the end of the week. The Dow Jones industrial average rose 1 per cent in early trading on Friday and in London the FTSE was up 1.24 per cent.

After a dismal August filled with negative economic news, most of it suggesting that the recovery had slowed significantly, the BLS noted that private sector payroll employment “continued to trend up modestly,” by 67,000 jobs.

However government employment fell, as 1.14 lakh temporary workers hired for the decennial census completed their work, the BLS report said. As a result the number had changed little in August.

Speaking shortly after the release of the BLS figures President Barack Obama said, “There is no quick fix to the worst recession we have experienced since the Great Depression.”

However he reassured Americans that there were “better days ahead,” reiterating that 67,000 private sector jobs were added in August although the month he took office 7.50 lakh jobs were lost. The evidence in the August report suggested that the U.S. economy was still far from escaping the clutches of the recession.

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Thursday, September 02, 2010

 

U.S. sanctions on Pakistani Taliban


From The Hindu

In a major legislative crackdown against the Pakistani Taliban, also known as the Tehrik-e-Taliban (TTP), the United States Department of Treasury, has slapped the terrorist group with sanctions.

In addition to “designating” the militant outfit — following which action the Treasury may freeze any assets of the organisation and effectively ban all U.S. entities from trading with it — the Treasury has also applied sanctions to Hakeemullah Mehsud, the Pakistani Taliban’s commander. While Mr. Mehsud was thought to have been killed in a U.S. drone strike in January, a video released by the Pakistani Taliban in May has led to claims that he might have survived the attack.

Speaking to media at a briefing, Daniel Benjamin, from the Office of the Coordinator for Counterterrorism, said, “Today I am pleased to announce the designation of the Tehrik-e Taliban as both a Foreign Terrorist Organization and as a Special Designated Global Terrorist Organization, in tandem with the designation of two of its senior leaders, Hakimullah Mehsud and Wali Ur Rehman.”

Mr. Benjamin added that the designations were part of the U.S.’ multipronged approach to “disrupt and dismantle TTP in Pakistan and that they would help to stem the flow of finances to the TTP and provide the Department of Justice with a “critical tool” to prosecute those who knowingly provide material support to the TTP and its senior leaders.

In addition, he said, the DoJ’s ‘Rewards for Justice Program’ had announced a $5 million reward for any information leading to the arrest of Mr. Mehsud or Mr. Rehman. An arrest warrant for Mr. Mehsud had also been filed and he had further been charged with “conspiracy to murder U.S. citizens abroad and conspiracy to use a weapon of mass destruction.”

These charges related to Mr. Mehsud’s alleged involvement in the murder of seven American citizens at a U.S. military base in Khost, Afghanistan in 2009, Mr. Benjamin noted.

Robert Hartung, Assistant Director of the Threat Investigations and Analysis Directorate in the Bureau of Diplomatic Security added that it was under the direction of Mr. Mehsud and Mr. Rehman that that the TTP also planned the failed bombing in New York City’s Time Square.

Touching upon the broader threat perception of the TTP, Mr. Benjamin noted that the TTP was “very much part of the most dangerous terrorist threat the U.S. faces.” He explained that the TTP and al-Qaeda had a symbiotic relationship: the TTP drew ideological guidance from al-Qaeda while al-Qaeda relied on the TTP for safe haven in the Pashtun areas along the Afghan-Pakistani border, he said.

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Bernanke for better risk management to avert crisis


From The Hindu

In a testimony to the Financial Crisis Inquiry Commission, Federal Reserve Chairman Ben Bernanke said that while risk-taking, at the heart of the financial crisis, could not be entirely avoided in a dynamic economy, a framework that promoted the “appropriate mix of prudence, risk-taking, and innovation,” was needed in order to achieve both sustained growth and stability.

Touching upon the triggers of the crisis, including private and public sector vulnerabilities, Mr. Bernanke also said to the Commissions that the crisis was amplified by the problem of “too-big-to-fail” firms. He said that such firms generated a severe moral hazard, an uneven playing field between big and small firms, and endangered systemic financial stability.

By way of solution to this problem, Mr. Bernanke said, the new financial reform law and current negotiations on new Basel capital and liquidity regulations had together “set into motion a three-part strategy to address too-big-to-fail.”

This strategy included “greatly” reducing the propensity for excessive risk-taking by large, complex, interconnected firms, allowing the government to resolve a distressed, systemically important financial firm in a fashion that avoids disorderly liquidation and increasing the resilience of the system by forcing more derivatives settlement into clearinghouses and strengthening prudential oversight of key financial market utilities.

Among the vulnerabilities of the private sector Mr. Bernanke cited dependence on unstable short-term funding, deficiencies in risk management, excessive leverage, need for better regulation of derivatives.

So far as the public sector’s role in the crisis was concerned, the Fed Chairman said that the main issues related to statutory gaps and conflicts, ineffective use of existing authorities and insufficient crisis-management capabilities.

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Historic West Asia peace talks begin


From The Hindu

Israelis and Palestinians have embarked on direct peace talks starting Thursday morning, a breakthrough that came after more than 20 months of stalled dialogue between the two parties.

Announcing the talks at the Rose Garden of the White House, United States President Barack Obama said that the dialogue would comprise "direct negotiations between Israelis and Palestinians... intended to resolve all final status issues".

Mr. Obama, who is hosting the meetings in Washington with other leaders from the Middle East in attendance, said that the goal was a settlement negotiated between the parties that would end the occupation which began in 1967.

He further underscored that the talks should result in the emergence of "an independent, democratic and viable Palestinian state, living side by side in peace and security with a Jewish state of Israel and its other neighbours".

Solution will not be imposed: Clinton

In statements made preceding the talks, Secretary of State Hillary Clinton said the U.S. understood that it was in its own national security interest that Israel and Palestine succeeded. "But we cannot and we will not impose a solution. Only you can make the decisions necessary to reach an agreement and secure a peaceful future for the Israeli and Palestinian people," she said.

In a similar vein to earlier comments by Mr. Obama, Ms. Clinton cautioned that there would be obstacles and setbacks to the process but the core issues of the negotiations — territory, security, Jerusalem, refugees, and settlements — would get no easier to resolve if they waited and they would not resolve themselves.

With strong words of encouragement for Mr. Netanyahu and Mr. Abbas, Ms. Clinton said, "We are convinced that if you move forward in good faith and do not waver in your commitment to succeed on behalf of your people, we can resolve all of the core issues within one year."

She added that she was enthused by the fact that both leaders had "embraced the idea of a two-state solution, which is the only path toward a just, lasting peace that ensures security and dignity for both Israelis and Palestinians."

The Secretary also addressed the people of the region directly, saying that although their leaders were sitting at the negotiating table, it was they who would ultimately decide the future. She said, "Today as ever, people have to rally to the cause of peace and peace needs champions on every street corner and every kitchen table... We cannot do this without you."

Mr. Netanyahu and Mr. Abbas respectively voiced their strong commitment to making the negotiations a success. Mr. Netanyahu emphasised a lasting peace would have to be built upon the foundation of security and that just as Israel would recognise an independent state for the Palestinians, the Palestinians should recognise Israel as a legitimate Jewish state.

Mr. Abbas reiterated his commitment to peace, and also called for an end to settlement and occupation in the disputed territories. He also called for Israel to end the embargo over the Gaza strip.

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Chinese acquisition of Morgan Stanley stake approved


From The Hindu

The United States Federal Reserve has announced its approval of the application by China Investment Corporation, the sovereign wealth fund of the Chinese government, to acquire indirectly up to 10 per cent of the voting shares of Morgan Stanley, a major Wall Street bank.

The U.S. central bank said that it approved the investment by the CIC after carefully considering the competitive and regulatory consequences of the acquisition. CIC, established in 2007 and holding assets worth approximately $332 billion at the end of 2009, manages China’s foreign exchange reserves.

Announcing its approval of the acquisition the Fed said in a statement, “Based on... all the facts of record, the Board has approved CIC’s application to acquire up to 10 per cent of the voting shares of Morgan Stanley pursuant to... the Bank Holding Company Act of 1956.”

The Fed however emphasised that its Board’s approval was “specifically conditioned on compliance by CIC with the conditions imposed in this order and the commitments made to the Board in connection with the application.”

In particular the Federal Reserve noted that CIC did not propose to “control or exercise a controlling influence” over Morgan Stanley and that its indirect investment would be a “passive” investment.

The Fed said the CIC had committed not to exercise or attempt to exercise a controlling influence over the management or policies of Morgan Stanley; not to seek or accept more than one representative on the board of directors of Morgan Stanley; and not to have any other director, officer, or employee with Morgan Stanley.

Further the Fed also ruled out any anti-competitive outcomes of the acquisition, arguing that based on all the facts of record, its Board had concluded that “consummation of the proposal would not have a significantly adverse effect on competition or on the concentration of banking resources in any relevant banking market.”

Morgan Stanley, with total consolidated assets of approximately $626 billion, is engaged in commercial and investment banking, securities underwriting and dealing, asset management, trading, and other activities both in the U.S. and abroad.

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IIF chief to address Indian Banks' Association

From The Hindu

Charles Dallara, Managing Director of International Institute of Finance, will address the Indian Banks' Association on September 8 in Mumbai, it was announced on Wednesday.

In his keynote address, Mr. Dallara will highlight the critical dimensions of the global financial system's regulatory reform, its impact on emerging markets, and specific issues for India.

Speaking to journalists here, Mr. Dallara said that the meeting of the Indian Bank's Association was taking place “at a time when important decisions are being made by many governments, central banks, regulators and international financial authorities, on the regulatory reform of the financial system, following the recent global financial crisis.” He noted that the IIF had played leading roles on behalf of its 420-member financial services firms across the world in shaping many of the financial industry's positions on regulatory issues and presenting these to the official authorities.

Mr. Dallara further said that the IIF would be holding its Spring Membership Meeting 2011 next March in New Delhi, with a number of India's leading banks serving as hosts and sponsors of this global financial conference.

Mr. Dallara held a number of senior positions in the U.S. Treasury and served as Managing Director at JP Morgan before joining the IIF. In other government roles, he was appointed by former President George Bush as Assistant Secretary of the U.S. Treasury for International Affairs in 1989 and was also Assistant Secretary for Policy Development and Senior Advisor for Policy to the Secretary of the Treasury from 1988 to 1989. The Indian Banks' Association, formed in 1946 with 22 members, now has a membership of 160 institutions, including public sector banks, private sector banks, foreign banks having offices in India and urban co-operative banks.

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Offended Pakistani military team cancels U.S. visit

From The Hindu

In an incident that might test the stress points of the United States-Pakistan relationship, a nine-member delegation of Pakistani military officers travelling to U.S. Central Command headquarters in Tampa, Florida, was offloaded from its flight out of Dulles International Airport in Washington after one officer made “what a flight attendant considered to be an ‘inappropriate remark’”.

In a statement, the Pakistan military said one of its delegations was on a visit to the U.S. after receiving an invitation to attend a meeting at Central Command. According to the statement, the delegation was “subjected to unwarranted security checks at Washington airport by U.S. Transport Security Agency”.

The Pakistan military clarified that later on the delegation had been cleared and U.S. defence officials “regretted the incident”. It said, however, that as a result of these checks, military authorities in Pakistan decided to cancel the visit and call the delegation back.

The New York Times reported that the Pakistani delegation, led by a two-star general, was “offended by their treatment”. The newspaper quoted an account published in Dawn which said that U.S. security officials had detained the Pakistani delegation for two hours, “telling them nothing, not allowing them to talk to anyone”.

The article in Dawn quoted an unidentified Pakistani official as saying, “They were treated like terrorists.” Pakistani news reports were quoted also as saying that the incident may have begun when a passenger complained to U.S. officials that the Pakistani brigadier general was overheard making what were interpreted as threatening remarks.

The Dawn report also said that the Pakistani brigadier general had an altercation with a stewardess that delayed the flight by 40 minutes before the delegation was told to leave the plane.

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U.S. has paid “huge price” in Iraq: Obama


From The Hindu

In an important policy speech that marked the end of the United States' combat operations in Iraq, President Barack Obama said that the "U.S. has paid a huge price" in Iraq and that ending the war was not only in Iraq’s interest but the U.S.’ as well.

Mr. Obama said, "Tonight, I am announcing that the American combat mission in Iraq has ended. Operation Iraqi Freedom is over and the Iraqi people now have lead responsibility for the security of their country."

Speaking through a rare televised broadcast from the Oval Office, Mr. Obama emphasised that the end of the combat phase also marked a promise fulfilled by his administration. He said, "This was my pledge to the American people as a candidate for this office."

He said that while the U.S. had by now removed nearly 100,000 U.S. troops from Iraq, a transitional force of 50,000 U.S. troops would remain with the mission of "advising and assisting" especially on targeted counterterrorism missions. Touching on the timeline for total withdrawal, Mr. Obama noted that "all U.S. troops will leave by the end of next year."

Al-Qaeda leadership

President Obama also sought to refocus the spot light on the U.S.’ military engagement in Afghanistan. Referring to the continuing threat of the al-Qaeda leadership, which remained "anchored in the border regions of Afghanistan and Pakistan", Mr. Obama said, "Because of our drawdown in Iraq, we are now able to apply the resources necessary to go on offense."

On the occasion, Mr. Obama recognised the contributions of U.S. armed services in Iraq, noting that at every turn they had served with courage and resolve. “As Commander-in-Chief, I am proud of their service," he said. In particular, he said, the U.S. had sent young men and women to make enormous sacrifices in Iraq, and spent vast resources abroad at a time of tight budgets at home. “Now, it is time to turn the page," he argued.

Concern over economy

In a speech that reflected President Obama’s deep concern with the U.S. economy on the eve of the November Congressional elections, Mr. Obama segued from the end of the war in Iraq to the urgent task of putting "the millions of Americans who have lost their jobs back to work".

Admitting that the trillion dollars the U.S. had spent in war, often financed by borrowing from overseas, had "short-changed investments in our own people and contributed to record deficits", Mr. Obama said the U.S. had for too long put off tough decisions on everything from our manufacturing base and energy policy to education reform.

As a result, too many middle-class families were working harder for less, and the U.S.’ long-term competitiveness was at risk, he said.

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West Asia peace talks under way


From The Hindu

Tripartite talks among the Israelis, Palestinians and the United States are under way in Washington, with Secretary of State Hillary Clinton holding a bilateral meeting with Palestinian Authority President Mahmoud Abbas on Tuesday and Israeli Prime Minister Benjamin Netanyahu on Wednesday. Ms. Clinton also met Quartet representative Tony Blair.

Though no statements came out of Ms. Clinton's bilateral discussion with Mr. Abbas, her talks with Mr. Netanyahu were preceded by condemnation by both leaders of the killing of four Israelis near the West Bank city of Hebron. The Israelis, among whom one was said to be a pregnant, were killed after their vehicle came under fire from unidentified gunmen. The LA Times reported that Hamas took responsibility for the attack.

In a statement following his “productive discussion” with Mr. Netanyahu, President Barack Obama also criticised the extremists and rejectionists who he said sought to undermine the talks. He added that the U.S. would be “unwavering in its support of Israel’s security,” and push back against such terrorist activities. Mr. Obama also noted that President Abbas, who he met on Wednesday afternoon, had “condemned this outrageous attack, as well.” He said he had the utmost confidence in Mr. Abbas and his belief in a two-state solution.

State Department officials expressed hope that the discussions would lead to progress.Special Envoy for Middle East (West Asia) Peace Senator George Mitchell said: “I believe that it is an awareness [of the] realities by the two leaders... that there is a window of opportunity... within which there remains the possibility of achieving the two-state solution.” He said though such a reality may be difficult for both leaders, the alternatives posed far greater problems.

Mr. Mitchell said the U.S. would play an “active and sustained role in the process,” though that did “not mean that the U.S. must be physically represented in every single meeting”.

American officials also noted they did not expect Hamas to play a role in “this immediate process”. However, they welcomed Hamas' full participation “once they comply with the basic requirements of democracy and nonviolence”..

President Barack Obama spent most of Wednesday holding bilateral meetings with the various assembled leaders, including Mr. Netanyahu, Mr. Abbas, King Abdullah II of Jordan and President Hosni Mubarak of Egypt.

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