Asia News Digest
Mahathir Links Terrorism to Economic Breakdown
Malaysian Prime Minister Dr. Mahathir Bin Mohamad lashed out at Israeli Prime Minister Ariel Sharon for assuring continuous terrorism globally, in his speech to the annual conference of United Malays National Organization (UMNO), the government party, on June 20. Dr. Mahathir hit the U.S. war on terrorism and the Israeli attacks on Palestinians as immoral and as failures in stopping terrorism, and linked the continuing terrorism to the failure of the world to implement a new financial architecture since the 1997-98 dreakdown crisis. Some excerpts:
"Faced with this unprecedented threat (of 9/11), the big powers appear to have panicked and lost their direction. Unused to handling attacks by terrorists, they resorted to conventional warfare. Although all the Sept. 11 terrorists were not Afghans, but [since] Afghanistan which had been used as base by the Al-Qaeda, suspected of involvement in the Sept. 11 attack, this country was attacked with weapons which recognize no one. Many innocent people, civilians, old and young women, children, the sick, were killed or wounded and millions of the people of this unfortunate country fled to neighbouring countries where they live in miserable conditions, without adequate shelter, without food or medical facilities....
"But terrorism has not been stopped.... Defeating Afghanistan has not given any effect in the fight against terrorism. Actually the possibility of terror attacks has increased because Israel, which oppresses Palestine, used the war against terrorism to upgrade its terror attacks against the Palestinians. Ariel Sharon, the Prime Minister of Israel, believes that terror can be stopped by more terror against those whom he claims are sponsors of terrorists.... But the Israeli action not only fails to reduce terror attacks, it actually causes much greater anger among Muslims, which can cause even more terrorism.
"Israel must realise that it is surrounded by Arab and Muslim countries. For how long does it expect to counter terror with more terror against the Palestinians? Even if the Israelis kill all the 6 million Palestinians there is no guarantee that other Muslims and Arabs from the surrounding countries will not terrorize like the Palestinian suicide bombers.... Israel should understand the futility of its methods.
"The only thing that will stop their terrorism is the removal of the cause or causes of their struggle.
"The truth is that the economic recession in these countries was caused by the rogue currency traders dumping so much of the currencies of these countries, and [by] the stock market players short selling their shares. Although it is clear that this caused the economic disaster, the relevant authorities still refuse to change the international financial regime...."
'New Violence' Incident Shocks China
To the shock of the nation of China, two boys, ages 14 and 13, apparently set the fire in a Beijing "Internet cafe" which killed 25 people and injured another 12.
China Daily reported on June 21 that the two boys confessed to police that they used gasoline to set the Lanjisu Internet Cafe on fire, because the manager would not allow them to use the computers.
The unlicensed "cafe" also violated fire regulations, so that, because windows and doors were locked, the death toll was high. Beijing has now shut down all 24,000 of its Internet cafes, of which only 10% are licensed.
According to the Beijing government, both boys had "admitted they often went to play in the Internet cafe. Two weeks ago, they had a disagreement with the owner of the Lanjisu cafe and in revenge they bought gasoline and set it on fire." Only the 14-year-old can be tried. One boy was wearing a "punk" style hairdo, with dyed hair.
On June 19, Beijing's vice mayor Liu Zhihua condemned Internet cafes as an "opium" for China's youth, while state media has criticized the cafes as a bad influence on young people.
Nearly 20% of China's Land Has Turned into Desert
The Chinese People's Daily of June 18, reported that nearly 20% of China's land has become desert, citing an announcement by Zhou Shengxian, director of the State Forestry Administration, in Beijing. Both human and natural factors are contributing to this disastrous process. A total of 1.743 million square kilometers were classified as desert in 1999, and the deserts are expanding by 3,436 square kilometers per year.
China has been carrying out large-scale anti-desertification projects, including a decade-long forest shelterbelt project in northern China, but the problem, exacerbated by severe droughts the past several years, keeps getting worse.
An effort is being made by the Ministry of Water Resources to "seal off" an area of about 260,000 square kilometers near the Great Wall, and turn back the desertification process there. This area, of parts of Beijing, Tianjin, Hebei and Shanxi, and Inner Mongolia, is mostly degraded grassland and semi-desert. The real deserts are a problem beyond what China can deal with technologically at this time, and the "fringe" areas are being dealt with first.
This project involves reforestation, including of land that had been used for farming, and relocating of residents of areas that are deemed too arid.
Indian Officials Discuss Lessening of Kashmir Tensions
Indian Defense Minister George Fernandes told reporters in Srinagar June 20 that the infiltration of militants from Pakistani territory into Kashmir "has almost ended." But he said those militants who were already inside are fighting the Indian security forces. "The ground situation has not changed as far as the activities of the militants inside Kashmir are concerned," Fernandes said.
Meanhwile, Indian Home Minister L.K. Advani said, on the "Talkback" program on Doordarshan (the government-run TV channel), that the lessening of tension between India and Pakistan was "primarily" due to the stand taken by the United States, Russia, and Britain, and now it is "their responsibility" to ensure further progress in this regard.
The Chinese Foreign Ministry has urged India and Pakistan to start talking to resolve the Kashmir issue.
Pakistanis Change Foreign Ministry, Education Law
Following the resignation of Foreign Minister Abdul Sattar in early June, Pakistani President Pervez Musharraf appointed Secretary of Foreign Affairs Inam ul Haq as the Minister of State for Foreign Affairs on June 18. It is not clear at this point whether a full Minister for Foreign Affairs will be named. According to reports in the media, Sattar was removed at the behest of Washington, as being "too anti-India," and as part of the political grouping represented by Imran Khan. At the same time, it was noted that Imran Khan, who is positioning himself to become a key player in the coming October general elections, is speaking out loudly against President Musharraf for "selling out to the United States."
In another development, Pakistani Information Minister Nisar Memon told reporters on June 20 that Islamabad has issued a new ordinance, "Madrassa Regulation Ordinance 2002," in a bid to regulate the functioning of close to 8,000 madrassas (Muslim religious schools). Describing the madrassas as part of Pakistan's tradition and culture, Memon said these schools would have to register with the Pakistan Madrassa Education Board and the relevant Provincial Madrassa Education Boards. Another report indicates that Islamabad will demand certain courses be taught at the madrassas in addition to the religious teachings taught at those schools. Western media, especially those which show a bias against Islam, have insisted that madrassas are teaching children to be terrorists.
Indian Economic Sectors Show Growth
Following months of slow growth of the infrastructure sector, India's key infrastructure sectors grew by 5.5% in May, aided by increasing demand for steel and cement; this raises hopes of an industrial revival in the second half of 2002. The sectors spanning crude oil, petroleum refining, coal, steel, cement, and electricity account for nearly 27% of industrial production, which was sluggish for most of 2001-02 (April-March).
Meanwhile, the United Natins Food and Agriculture Organization (FAO), in its latest report, said that India has emerged as the second largest exporter of rice, replacing Vietnam. India's exports are likely to be 3.6 million tons this year. The traders, however, contend that that figure is conservative and it could be more than 5.0 million tons. India's rice exports are well behind those of Thailnd, at 7.6 million tons. The FAO's figures are based on another anticipated bumper paddy harvest and the expected surge in imports by Indonesia and China.
IMF Backs Looting of Philippines by Energy Pirates
The IMF is urging the Philippines government to take payments out of the hides of the population to pay the steep charges for unused energy (called the PPA), which the government must pay, according to the corrupt foreign contracts from the 1990s. The costs were made even worse by the energy deregulation bill passed last year, and there is a huge popular revolt brewing against passing on the costs. The IMF has (naturally, by its standards) joined the fray by warning the government not to give in.
IMF Mission Chief Joshua Felman told President Gloria Macapagal-Arroyo (who did, in fact, give in to the pressure in May by temporarily withdrawing the PPAs), that if the country expects any foreign investment, "There is a need to establish a credible regulation structure to cover the cost of investment." He said that the $300 million that was to be passed on to consumers can not continue to be paid out of the government budget.
Bush Approves U.S. Combat in Philippines
As EIW has repeatedly warned, the "exercises" involving U.S. troops in the Philippines are about to turn into a combat situation. The situation is moving rapidly towards war, as U.S. troops who were engaged in a construction project near the capital of Basilon Island, Isabela, were fired upon and returned fire. No casualties were reported. Two U.S. Army Chinook helicopters flew from Zamboanga (on the Mindanao mainland) to Basilon after the exchange, but it was not disclosed whether they were on combat duty.
Meanwhile, not surprisingly, Bush Administration officials announced to the New York Times June 18 that President Bush has agreed in principle to allow U.S. troops to join on combat mission deployments with Philippine Army soldiers. (This ignores the Philippine Constitutional ban on such deployment, which the Arroyo Administration appears anxious to ignore it as well.) The official also acknowledged to the Times that this Presidential decision "almost cetainly means that joint training between the two countries will extend beyond July 31," the official end of the "exercise."
The disclaimer that U.S. troops will "only use force in self-defense," becomes outright black humor in light of the news this week that a Presidential order approved operations to deploy covertly into the sovereign nation of Iraq in order to kill the head of state, but to use force only in "self-defense!"
Telecom Crash Hits Singapore Giant SingTel
Singapore Telecommunications Ltd (SingTel) shares hit a new lowS$1.41June 17, after Moody's Investors Service revised its credit rating outlook to negative, from stable, on fears that the telco may not be able to cut its debt.
"The change in outlook reflects Moody's concerns that SingTel may find it difficult to reduce debt to targeted levels in the current operating environment," a Moody's statement said. The telco, which bought Australia's Cable & Wireless Optus for U.S.$7.76 billion last year, saw its net cash position of U.S.$1.73 billion in fiscal 2001 turn to a net debt of U.S.$5.53 billion in fiscal 2002.
Admiral Blair Urges Stronger Ties to Mynamar
U.S. Admiral Dennis Blair, the just-retired former U.S. chief of the Asia-Pacific Command, called for the U.S. to form "effective connections" to Myanmar, which is still the subject of U.S. sanctions.
Blair, who is known for his "engagement" rather than "confrontation" approach, responded to written questions submitted by Congress on May 16. He repeated his often-stated support for re-engaging military relations with Indonesia and China. Military-to-military relations between the U.S. and China have been in limbo since Donald Rumsfeld became U.S. Secretary of Defense. The new outlook towards Myanmar, where Blair called for "a few effective connections with the newer elements of the military," will likely have a significant impact.
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