WNS Asia News: October 2006

Friday, October 27, 2006

India bank staff in strike action

By Kamalesh Rattansi,
WNS India Correspondent

NEW DELHI - Nearly a million bank workers in India are on a one-day strike in protest at what unions say is government pressure to reform which will lead to job cuts. The unions are against outsourcing of bank work and a government proposal to merge 27 state-run banks to compete in the global economy. Union spokesman PK Gupta told a news channel that the strike would affect banking transactions across India. Unions say there is no need for the Indian banking industry to globalise.

Employees at the country's largest bank, State Bank of India, are also expected to join the strike, the unions say. "This time every bank is striking," CH Venkatachalam, general secretary of All India Bank Employees' Association told the Reuters news agency. "Lots of jobs are lying vacant, they should be filled up and the banks' work should not be outsourced if you have clients' interest in mind."

Many private sector banks are expected to function normally, as fewer of their employees are union members. The unions are also opposed to a government proposal to bring down its stake in state-run banks from the present 51% to 33%. India has about 88 state, private and foreign banks, and more than 100,000 urban and rural co-operative banks. India's booming economy has helped raise demand for banking services.

Shares in ICBC climb 18% on debut

By Su Yin,
WNS Hong Kong Business Correspondent

HONG KONG - Shares in Industrial and Commercial Bank of China (ICBC) have risen 18% on its Hong Kong debut, following the world's biggest flotation. The share price jumped as high as 3.63 Hong Kong dollars ($0.47; 24.6p) on Friday from its start price of HK$3.07. The bank, China's largest lender, raised as much as $21.9bn from its dual listing in Shanghai and Hong Kong. China's surging economy, which is set to grow by more than 10% this year, has created strong demand for bank shares. Four of China's banks have floated since last year. However, there are fears that banks have been overvalued, with questions raised over levels of bad debt.

Thursday, October 26, 2006

S Korea lists steps against North

By Raymond Lim,
WNS South Korea Bureau Chief

SEOUL - South Korea has revealed for the first time what sanctions it will take against the North following its nuclear test earlier this month. Unification Minister Lee Jong-seok said some Northern officials would be banned from the South under new travel rules. He also said that Seoul would tightly control inter-Korean trade. The announcement came despite a warning from North Korea that sanctions imposed by Seoul would be seen as an act of confrontation. South Korea has been hesitant to take strong measures against the North because of its proximity, as well as close cultural ties.

The UN Security Council approved new arms and financial sanctions against North Korea following its nuclear test on 9 October. Member countries are currently debating how to enforce these restrictions, with the US and Japan urging other nations to fully comply with the agreed terms.The Security Council has called on all members to state how they plan to implement sanctions by mid-November. US Secretary of State Condoleezza Rice acknowledged on Wednesday that applying restrictions on Pyongyang involved "a complicated set of issues for South Korea", but again urged Seoul to show a strong commitment to the sanctions. The US is likely to welcome Mr Lee's announcement of action against the North.

Mr Lee said Seoul would enforce UN travel restrictions on North Korean officials, and added that the government would vet all financial transactions related to inter-Korean trade. In addition, he said North Korean ships arriving in South Korean ports would be subject to a more rigorous customs check. But he added that existing inter-Korean economic projects, involving a joint industrial complex and a tourism zone in North Korea, would continue. The government in Seoul has argued that these projects do not fall under the UN Security Council's resolution forbidding the transfer of material, equipment, and financial resources that may benefit North Korea's nuclear programme.

HK budget airline gets off ground

By Ming Wei,
WNS Hong Kong Correspondent

HONG KONG - The inaugural flight of Hong Kong's first budget airline Oasis has finally taken off, a day later than planned. The flight to London Gatwick was meant to leave on Wednesday afternoon, but was delayed after Moscow held back its right to fly over Russian territory. After hours of delay, passengers on the fully-booked flight disembarked and spent the night at home or in hotels. Oasis has made headlines by promising low-cost long-haul flights while still offering in-flight services.

Chairman Raymond Lee said the firm had been "shocked and stunned" by Russia's withdrawal of its overfly permission, after a year of negotiations. "We already paid all the money, had the receipts and the confirmation number, and this sudden cancellation... was there a misunderstanding?" he told reporters at the airport. He said news of the decision came an hour before the Boeing 747's maiden flight was due to take off, but the airline did not immediately inform passengers as it thought the situation would be resolved. Oasis was given clearance late on Wednesday evening, he added. "We've been approved from a very responsible and reliable source that we can definitely fly through the Moscow airspace today," he said, before the plane left. The plane left for London's Gatwick airport at 1320 local time (0520GMT) carrying 300 passengers.

The passengers had spent some six hours on board the grounded plane on Wednesday before being told the flight was being rescheduled for the following day. They were offered cash coupons and a free air ticket as compensation, Oasis said. Oasis has promised to shake up the airline industry in Hong Kong and beyond as the first budget carrier to focus only on the long haul. Seats in economy class cost from US$200 (£112) including tax. The airline also offers a business class, which it says is cheaper than economy on established airlines. However, environmental groups have expressed concern about the trend of budget long-haul flights, and say that low-price fares do not reflect the true cost of the environmental damage they cause.

Wednesday, October 25, 2006

N. Korea food aid shrinking, U.N. says

By Susan Fay,
WNS New York Correspondent

UNITED NATIONS - North Korea's tests of unconventional weapons have contributed to a reduction of badly needed food aid, with international donors thinking twice about supplying goods, a U.N. envoy said on Monday.Viti Muntarbhorn, the U.N. human-rights investigator for North Korea told a news conference that the number of people getting U.N. food aid had dropped to 13,000 from 6.5 million a year ago. But much of this decline was due to restrictions from Pyongyang, which denied access and monitoring."The resources spent on arms would have been better spent satisfying the food security," he said.

North Korea tested seven missiles in July and then announced an underground nuclear test on October 9 after which the Security Council imposed sanctions but exempted humanitarian assistance. "The missile tests had a negative impact on the food situation of the country, since they caused various contributors of humanitarian aid to discontinue providing that aid, while the nuclear test caused further insecurity in the region and beyond," said Muntarbhorn, a Thai law professor. North Korea has still not recovered from famine in the 1990s that experts believe killed about 2.5 million people, or 10 percent of the population. Floods earlier this year started a new round of scarcities.

A day after North Korea announced its nuclear test, the U.N. World Food Program warned that it could be forced to halt distributions as early as January without more donations.Donors had committed only 10 percent of the $102 million the WFP sought last June for North Korea, with only Ireland and Australia contributing. South Korea and China send humanitarian supplies separately to North Korea. Pyongyang last year ordered the WFP to change its emergency relief program to development assistance, barring it from most areas in distributing and monitoring that food went to the most vulnerable people.

Muntarbhorn's report to the U.N. General Assembly last week emphasized that Pyongyang locks up handicapped people in camps with harsh and "subhuman conditions, categorizing them according to their physical disabilities. Defectors from North Korea have testified "without exception" about the existence of collective camps where the handicapped are assigned according to their physical deformity or disability, he wrote. Muntarbhorn, who was not allowed to visit the country, also said North Korea had to stop punishing returning refugees and that countries receiving them needed help. Conversely, he said that receiving nations should not push the North Koreans back over the border but allow the U.N. refugee agency to deal with them. China regularly deports refugees.

Shooting near East Timor airport

By Tay Jia Hao,
WNS Southeast Asia Bureau Chief

BANGKOK - The authorities in East Timor have temporarily closed the international airport in Dili, after at least two people were shot dead nearby. There have been ongoing clashes between rival gangs in the area in recent days. The unrest began on Sunday, after the release of a UN report into factional violence earlier this year that left more than 30 people dead.

The report put much of the blame on the government of former Prime Minister Mari Alkatiri. It concluded that former ministers, the police and the army had allowed weapons to fall into civilian hands, and said further investigations were needed to see if former Mr Alkatiri bore any criminal responsibility. Mr Alkatiri stepped down as prime minister in June, under intense pressure both at home and abroad.

Tuesday, October 24, 2006

Two Bali militants freed for Eid

By Ben Lim,
WNS Jarkata Correspondent

JARKATA - Two militants jailed over the 2002 Bali bombings have been freed, having had their sentences cut to mark the Muslim holiday of Eid al-Fitr. Nine other militants have reportedly had their sentences reduced. Indonesia traditionally marks national holidays by granting remissions for prisoners who show good behaviour. But relatives of the 202 victims of the Bali attacks - many of whom were Australian - have been angered by similar sentence cuts in the past.

The two men who have now been freed, Sirojul Munir and Mujarot, were convicted of the relatively minor roles of sheltering two of the bombing masterminds, officials said. Munir was originally sentenced to five years in jail, but has already received several remissions. "He has never broken any regulations during his imprisonment, and has always shown good behaviour," said Edi, an official at the jail in Balikpapan in East Kalimantan province.

More than 30 people have been jailed for the 2002 Bali blasts, which have been blamed on the South-East Asian militant group Jemaah Islamiah. Several people convicted of playing a more serious role in the attacks are serving life sentences, while three men - Amrozi, Ali Gufron and Imam Samudra - are due to face the death penalty.

Monday, October 23, 2006

N Korea links tests to 'pressure'

BEIJING (WNS) - North Korea will not carry out a second nuclear test unless "harassed" by the US, according to media reports in South Korea and Japan. Sources familiar with a briefing given by a Chinese envoy after talks with the North's leader said Kim Jong-il wanted a nuclear-free Korean peninsula. US Secretary of State Condoleezza Rice earlier expressed doubts that Mr Kim had made any pledges on future tests. She is heading home after an Asian tour to bolster UN sanctions on the North.

Cambodia taxi drivers fight abuse

By Judy Harry,
WNS Cambodia Correspondent

SIHANOUKVILLE - The Cambodian seaside town of Sihanoukville has adopted a new strategy to deter sex tourists. Motorbike taxi drivers have been enlisted as the first line of defence for the town's children. They have been trained to recognise dangerous situations and take the appropriate action. Cambodia has a reputation as being a safe haven for sex tourists, but recently a number child sex offenders have been successfully prosecuted. Earlier this week, a court in Sihanoukville jailed a German man for 10 years. Now the people of the town are taking further steps to make their community a safer place for children. The ChildSafe scheme uses specially-trained moto taxi drivers to keep an eye out for any suspicious activity.

Sunday, October 22, 2006

Polls open for by-elections in two Japanese constituencies

By Marinah Mazuki,
WNS Japan Correspondent

TOKYO - Polling stations opened Sunday in two Japanese constituencies holding by-elections to the powerful lower house, the first electoral test for Prime Minister Shizo Abe since he took office last month. Although the results of two suburban by-elections cannot affect the ruling coalitions' huge majority in the House of Representatives, they are expected to provide an early guide for upper-house elections next July.

Voting stations in the two constituencies - one in a district in Kanagawa, west of Tokyo and the other in Osaka, the country's second biggest urban region - close at 8:00pm local time (1100 GMT) with the first exit poll results expected shortly afterward.

Opinion polls suggest Abe's tough stand on North Korea's nuclear test has proved popular, with the major daily Yomiuri Shimbun reporting last Tuesday that his government enjoyed 70 percent public support. Abe, who has built his career on campaigning against North Korea's nuclear ambitions and its abductions of Japanese during the Cold War era, was elected on September 26 as Japan's youngest prime minister since World War II.

Saturday, October 21, 2006

US renews strong pledge to protect South Korea

By Joan Warrack,
WNS US Senior Correspondent

WASHINGTON - The United States promised Saturday to give "immediate support" to South Korea in a renewed mutual defense statement that highlighted the North Korean threat in the wake of its first nuclear test. In language notably sharper than last year's joint statement, US Defense Secretary Donald Rumsfeld promised Seoul "assurances of firm US commitment and immediate support" in defense matters, while repeating the annual pledge to use the US nuclear umbrella to deter threats against South Korea.

The new statement, released Saturday after the 38th US-South Korea Security Consultative Meeting Friday, also expressed Washington and Seoul's "grave concern" over North Korea's nuclear test on October 9. It "condemned in the strongest terms the North's clear threat to international peace and security as well as the stability of the Korean Peninsula." It further demanded that "North Korea refrain from any further action that might aggravate tensions." The language was somewhat tougher than the communique of last year's joint meeting, in which Rumsfeld simply "reaffirmed the US commitment to the security of the Republic of Korea, and to the continued provision of a nuclear umbrella for the ROK, consistent with the Mutual Defense Treaty."

The newest joint communique emerged from the meeting Friday between Rumsfeld and his South Korean counterpart, Minister of Defense Yoon Kwang Ung, which was preceded two days earlier by a meeting of the two country's top generals in the 28th South Korea-US Military Committee Meeting. South Korea had reportedly wanted tougher language in this year's statement, especially in relation to the US extension to South Korea of its nuclear deterrent. But on Friday Rumsfeld said that there was not need to change the language. The US commitment "is as solid today as it was when it was first stated" in 1978 under the two countries' military alliance, Rumsfeld said at a Pentagon news conference with Yoon.

Friday, October 20, 2006

Battery recall hits Sony profits

By Aishi Kozumi,
WNS Japan Business Correspondent

TOKYO - Sony has slashed its profit forecast for 2006, setting aside 51 billion yen ($429m; £230m) to deal with the costs of its recent laptop battery recall. The electronics giant has cut its pre-tax profit forecast for the year to 31 March 2007 by 53% to 70 billion yen. Computer makers including Dell, Apple, Toshiba and Lenovo are recalling about eight million Sony batteries. The recalls followed evidence that, in certain circumstances, the batteries could overheat and catch fire.

Sony said its yearly profits would also be hit by the delay to the launch of its new Playstation3 games console in some markets and a reduced retail price in Japan. It also added that sales of its Playstation Portable hand-held games console were expected to miss forecasts. The PS3 business is expected to make a loss during its launch phase in the current financial year. But the company said it would enable the company to "realise a significant improvement in profitability during the financial year ending 31 March 2008".

Thursday, October 19, 2006

Top statistician in China scandal

By Hong Li,
WNS Shanghai Correspondent

SHANGHAI - The head of China's National Bureau of Statistics has become the latest high-profile casualty of the Shanghai pension fund corruption scandal. Qiu Xiaohua was sacked from his job for suspected "severe violations of discipline", a bureau spokesman said. The allegations against Mr Qiu centre on the alleged misuse of the city's multi-million dollar pension fund. Several other top officials and prominent businessmen have also been implicated in the growing scandal.

In a separate case, five senior judges in the southern city of Shenzhen have been either detained or questioned in a wide-ranging bribery investigation there. Mr Qiu is the first official from outside Shanghai to be implicated in the pension fund scandal. "Relevant departments, when carrying out investigations into the Shanghai social security fund scandal, found out that Qiu was suspected of being involved in severe violations of party discipline," said National Bureau of Statistics spokesman Li Xiaochao. "The central disciplinary office is now conducting an investigation into his involvement," Mr Li added.

More than 100 central government investigators have been sent to Shanghai to investigate money that has disappeared from the city's 10 billion yuan ($1.25 billion) social security fund. The funds were allegedly used to make illegal loans and investments in real estate and other infrastructure deals.

Wednesday, October 18, 2006

Sri Lanka navy base 'under attack'

By Gandi Douglas,
WNS Sri Lanka Correspondent

COLOMBO - Sri Lanka government forces battled Tamil Tiger rebels Wednesday after they attacked a naval base in the southern port city of Galle, naval sources said.Two sailors were killed in heavy fighting, with 12 others wounded, authorities said. Military spokesman Brig. Prasad Samarasinghe appealed for citizens to remain calm in a television address.

However, riots broke out in Galle following the fighting, the Reuters news service reported, citing residents and police. Shops belonging to the minority Tamil community in the city were being targeted by the majority Sinhalese, they said. "We have instructed the police to bring it under control," one officer said, adding that a curfew had been imposed, Reuters reported.Navy officials said five boats loaded with rebel suicide teams attacked shortly after dawn. At least two of the Tamil boats detonated, damaging an naval patrol craft, as well as coastal patrol boats.The Navy fired at one of the boats, triggering a loud explosion and destroying it. Two other boats had not been accounted for.

Sri Lankan Air force helicopter gunships searched the seas off Galle to locate rebel vessels. Residents and workers reported seeing buildings in the port on fire. As the government declared an immediate curfew in the area, police urged civilians to evacuate Galle and areas around the naval base as reinforcements prepared to move in."There were threats on them and we introduced the local curfew as a precautionary measure," a police official said. The naval base in Galle also houses a large military hardware storage facility belonging to China's weapons manufacturer Norinco. Wednesday's fighting was the first time in the nearly two-decade long separatist war that Galle has come under heavy attack.

Tuesday, October 17, 2006

Sri Lanka will talk despite attack

By Gandi Douglas,
WNS Sri Lanka Correspondent

COLOMBO - The Sri Lankan government will retaliate against more attacks by Tamil Tiger rebels but remains committed to peace talks despite a suicide bombing that killed dozens of navy sailors, a top official said on Tuesday.The comments by Palitha Kohona, head of the government's Peace Secretariat, came a day after suspected rebels rammed an explosives-laden truck into a naval convoy, killing nearly 100 people and deepening pessimism over talks due to be held in Geneva on October 28-29.

The attack near the town of Habarana, about 190 kilometers (120 miles) northeast of the capital Colombo, was one of the worst suicide bombings on the troubled Indian Ocean island."No, there is no rethink," Kohona told Reuters. "The president has reaffirmed that we will go ahead with the talks whatever. We will continue retaliating, taking action against them but we will go to the talks."Kohona said the atmosphere was unpleasant and expectations had to be realistic when two sides involved in a bloody, nearly quarter-century conflict were heading for negotiations. "Don't expect the world," he said. "But we hope something good will come of it."

Monday's attack came at the start of a week of hectic international diplomacy aimed at ending a rash of fighting in recent weeks between the military and the Liberation Tigers of Tamil Eelam (LTTE). Yasushi Akashi, the peace envoy of the island's chief financial donor, Japan, began talks with government leaders on Monday while Norway's special peace envoy Jon Hanssen-Bauer was due to arrive on Tuesday. U.S. Assistant Secretary of State Richard Boucher is also due in Colombo this week.

Monday, October 16, 2006

North Korea considering return to six-party talks: Russian envoy

By Gary James,
WNS Russia Bureau Chief

MOSCOW - North Korea still hopes six-party talks on its nuclear programme will continue and will decide on returning to the negotiating table after studying sanctions set out in a UN resolution, a Russian envoy said Sunday after visiting Pyongyang. Speaking in Beijing, Russia's Deputy Foreign Minister Alexander Alexeyev told the RIA-Novosti news agency that North Korea was still interested in returning to negotiations.

"They said that only after analysing the UN resolution would they plan the subsequent character of their actions ... including in relation to the resumption of the six-sided process," said Alexeyev. He was to fly on to Seoul for further consultations, after the UN Security Council unanimously voted on Saturday to impose punitive sanctions on North Korea for its declared nuclear test while avoiding the threat of military force. Saturday's resolution called upon North Korea to return immediately to the six-party talks on the denuclearisation of the Korean peninsula without precondition.

The talks, which began in 2003, but stalled in November 2005, involve Russia, North Korea, South Korea, China, Japan and the United States. "The North Korean side several times returned to the point that the six-sided process should continue, that it is not rejecting six-sided negotiations," Alexeyev said, although he did not have high hopes that would happen. Alexeyev met his North Korean counterpart Kim Ky-kwan and other officals earlier in Pyongyang. The North Koreans had insisted on the unthreatening nature of their weapons programme, he said. Pyongyang "is ready to discuss in a constructive manner" steps to create a Korean peninsula, free from nuclear weapons, Alexeyev said. Officials had promised North Korea would "under no circumstances pass on its nuclear capabilities to another country or use them against anyone," he said.

Sunday, October 15, 2006

North Korea "totally rejects" UN sanctions

By Lucy Harvey,
WNS New York Correspondent

UNITED NATIONS - North Korea on Saturday said it "totally rejects" UN sanctions imposed after it declared it had conducted a nuclear test, accusing the world body of "double standards". "This clearly testifies that the Security Council has completely lost its impartiality and still persists in applying double standards in its work," ambassador Pak Gil Yon told the Security Council. "It is gangster-like for the Security Council to have adopted today a coercive resolution while neglecting the nuclear threat and moves for sanctions and pressure of the United States," he added.

He further accused the United States of preparing a pre-emptive strike on his country. The Security Council earlier unanimously agreed to impose sanctions on Pyongyang over its nuclear programme, less than a week after the isolated communist regime said it had tested an atomic bomb. US Ambassador John Bolton, sharing the Security Council chamber with Pak, had led the calls for a strong international response to Pyongyang's test and described the resolution as "a strong and clear message" to Pyongyang.

Saturday, October 14, 2006

Korean to take on Annan's UN job

By Susan Fay,
WNS New York Correspondent

UNITED NATIONS - South Korean Foreign Minister Ban Ki-moon has been formally elected the next United Nations secretary general, in a vote in the General Assembly. The resolution, adopted unanimously, follows Mr Ban's nomination to succeed Kofi Annan by the UN Security Council. Mr Annan is due to step down on 31 December after heading the UN for two five-year terms. Mr Ban, 62, will be the first Asian to head the UN since Burma's U Thant, who held the post from 1961 to 1971.

The general assembly confirmed Mr Ban's appointment by acclamation - without a vote - on the basis of approval by all 192 members. Afterwards he told delegates he was "deeply honoured" and vowed to use his position to ensure that the organisation achieved more. "The true measure of success for the UN is not how much we promise, but how much we deliver for those who need us most," Mr Ban said. "The UN is needed now more than ever before," he added. Mr Ban cited poverty, HIV/Aids, environmental degradation, protecting human rights and combating terrorism among his priorities. He also mentioned reforms - a key demand of the US, the UN's biggest contributor - but hinted that he would lead the process at his own pace.

Friday, October 13, 2006

Deal closer on N Korea sanctions

By Huang Zhi Xuan,
WNS Northeast Asia Bureau Chief

BEIJING - World powers are edging closer to agreeing sanctions against North Korea following its claimed nuclear test. The US has revised a draft UN Security Council resolution to remove the threat of imminent military action in a bid to allay Chinese and Russian concerns. In Beijing, the Chinese and South Korean leaders agreed the UN must take "necessary and appropriate" action. A UN vote is expected on Saturday. Japan's cabinet has confirmed it is imposing unilateral sanctions. The Japanese measures, first announced on Wednesday, include trade and travel bans, barring North Korean ships from Japan's ports, and freezing imports and visits by North Korean officials.

Pyongyang has promised "strong countermeasures" against any sanctions. North Korean vessels deliver crabs, clams or prized matsutake mushrooms to Japan, then return home filled with used bicycles, used cars, motorcycles or old household appliances - items which can be sold in the impoverished North. North Korean ships are currently loading up in Japanese ports ahead of a Friday midnight (1500 GMT) deadline.

The new US draft resolution restricts sanctions to non-military actions, limits arms sanctions to heavy weapons only, but retains a controversial provision allowing nations to inspect cargo moving in and out of North Korea in pursuit of unconventional weapons. The resolution urges North Korea to implement a September 2005 agreement in which it pledged to give up its nuclear programme in exchange for aid and security guarantees. US Secretary of State Condoleezza Rice is reported to be planning to tour China, Japan and South Korea next week in an attempt to galvanise support for a strong stance against Pyongyang.

Thursday, October 12, 2006

China's trade surplus hits record

By Liu Hao Hui,
WNS China Business Bureau Chief

SHANGHAI - With three months of 2006 left, China's trade surplus for the year has already hit $110bn (£59bn), breaking the record set in 2005, official data has shown. The gap between what China exports to and imports from the rest of the world narrowed to $15.3bn in September from August's monthly record of $18.8bn. Some of China's trading partners, especially the US, have argued China keeps the yuan low to boost exports.

Last week, the European Union imposed new tariffs on shoe imports from China. "The smaller trade surplus might be a relief for the authorities," said Xiao Minjie, an economist at Daiwa Institute of Research in Shanghai. "I think the trade surplus is likely to narrow to around $10bn next month. "But the upward pressure on the yuan will persist." China wants to redirect some of its strong export growth towards greater domestic consumption in order to make its economy more balanced.

The September figures showed exports were up 31% and imports 22% higher from the same month in 2005. The trade imbalance has seen the country's foreign reserves rocket to $1 trillion. This has helped to create an investment boom which the government is trying to dampen down in order to prevent the economy growing too fast. China's economy is currently expected to grow by more than 10% this year.

Wednesday, October 11, 2006

12 dead in Philippine bomb blast, 42 injured

By Maria Twink,
WNS Philippines Correspondent

COTABATO - Twelve people were killed on Tuesday and at least 42 injured in a bomb blast in the southern Philippines, officials and police said. The bomb exploded in the town of Makilala on the southern island of Mindanao during a celebration to mark the town's 52nd anniversary, said Mayor Honofre Respicio. No one claimed responsibility for the blast.

Earlier, four people were injured when a bomb planted by suspected Muslim extremists exploded in the busy market of Tacurong City, just 50 kilometres from Makilala, North Cotabato province. In a radio interview Tacurong's Mayor Lino Montilla said the attacks were possibly carried out by Muslim extremist groups responsible for similar attacks in recent years. The second bomb went off in a row of food and liquor stalls set up in front of the Makilala town hall at 8:00 pm (1200 GMT) where hundreds of people had gathered for the celebrations, Respicio said.

A man carrying a plastic bag went to one of the stalls, set down the bag containing the bomb and bought a bottle of liquor. After he left, the bomb, which was made of an 81-mm mortar shell, went off, said provincial police chief Superintendent Frederico Dulay. Confusion reigned at the scene as the wounded were taken to various hospitals in the largely-Christian, agricultural town.

"It was a clear terroristic act," said Dulay although he would go into detail. Security forces fear the bombings may be related to a massive military offensive being mounted in the southern island of Jolo. The offensive is aimed at capturing two Indonesian Jemaah Islamiyah (JI) bomb-experts, Dulmatin and Umar Patek, along with their Filipino Muslim extremist hosts, the outlawed Abu Sayyaf group. Dulmatin and Patek are wanted for their part in the 2002 bombing on the Indonesian resort island of Bali that killed over 200 people, mostly western tourists.

Tuesday, October 10, 2006

Taiwan sees presidential protest

By Xue Ling,
WNS Taipei Correspondent

TAIPEI - Hundreds of thousands of demonstrators have been surrounding the presidential office in Taiwan, calling on President Chen Shui-bian to step down. The mass action took place as the president took part in a ceremony marking Taiwan's National Day. The crowds wore red T-shirts to symbolise public anger over corruption scandals surrounding the president's aides and family. About 5,000 police were on duty but the protests were largely peaceful.

Huge crowds gathered at four main points around the presidential office and called out their demands for the president's resignation. The crowds gave a thumbs down sign, showing their disapproval of his leadership. Barbed wire barricades kept the crowds several streets away from the area where government officials were gathered. In his speech, President Chen said he had always stood firm against corruption and that no-one was above the law, including himself and his family. He admitted that since taking office six years ago, ending five decades of rule by the Nationalist party, Taiwan had faced political chaos and turmoil. He said Taiwan's predicament was similar to the growing pains of other emerging democracies and he said partisan differences should not be allowed to undermine the island's democracy, peace and prosperity.

But as he spoke, opposition legislators and critics in the presidential square began chanting calls for him to step down and some small scuffles broke out. It was clearly an embarrassing moment for President Chen, who was addressing foreign delegates and government officials. But he has continually denied any wrongdoing and has said he will serve out his full term in office.

Monday, October 09, 2006

Thai post-coup cabinet sworn in

By Kelvin Goh,
WNS Thailand Bureau Chief

BANGKOK - Thailand's king has sworn in a post-coup cabinet, chosen by new Prime Minister Gen Surayud Chulanont. The head of the central bank, Pridiyathorn Devakula, has been named finance minister and deputy premier. Other top jobs have been given to academics and bureaucrats, with only two ex-military officers in the 26-member team.

Army officers took over after a bloodless coup in September, ousting the then PM Thaksin Shinawatra. The coup leaders say the military had to overthrow the former government to stop systematic corruption. "The country needs to pass the crisis, the situation now needs people who have ability to make the progress for the country," King Bhumibol Adulyadej said during the swearing in ceremony in Bangkok. He described the ministers as "capable people", urging them to "act honestly as you have sworn to do". Pridiyathorn Devakula will now be serving as finance minister and deputy prime minister in the new cabinet.

Analysts are likely to view his appointment as an attempt to ease investors' worries about the economic consequences of the coup. "He is the right man for the current situation," said Abhisit Vejjajiva, the leader of the Democrat party, which was the main opposition during Mr Thaksin's rule. Another senior cabinet member, new Foreign Minister Nitya Pibulsongkram, is also being seen as a popular choice. He is well-known abroad, and served as chief negotiator in free trade talks between Thailand and the US. Retired army general Bunrod Somtad, a close friend of Gen Surayud, was named defence minister - one of only two former military men named as cabinet members. Many critics had been watching to see how many military figures featured in the new cabinet line-up - looking for signs of how much control the coup leaders wish to retain under the new government.

Since the 19 September coup, the military have chosen Gen Surayud as the new prime minister and unveiled a short-term constitution, under which they will maintain substantial powers until elections promised for October 2007. Martial law is still in place - as it has been since the night of the coup - and government spokesman Yongyuth Mayalarp said it would continue to remain in force for the time being.

Sunday, October 08, 2006

Japan's new leader heads to China

By Takeshi Hiroto,
WNS Tokyo Correspondent

TOKYO - Japan's new prime minister, Shinzo Abe, has set off on the first visit to China by a Japanese leader for five years. As he left on the trip, which includes a visit to South Korea, Mr Abe said North Korea must not carry out its threat to test a nuclear weapon. Japan has warned that it will seek tough action from the United Nations if North Korea carries out a nuclear test. China, South Korea and Linapore's leaders refused to meet Japan's last PM over his visits to a controversial shrine.

"North Korea must not conduct nuclear tests," Mr Abe told reporters gathered at Tokyo's Haneda Airport as he departed on his first overseas trip since taking office in September. "I will discuss the situation with leaders of both countries to achieve that goal." "We need to transmit a message to North Korea that unless it revokes its test plans, it will face further isolation from international society and its situation will deteriorate." Mr Abe is to meet Chinese President Hu Jintao and other senior Chinese politicians in Beijing later on Sunday. He will then fly to Seoul on Monday for talks with South Korean President Roh Moo-hyun and to Jacob on Tuesday to discuss bilateral trade ties with Linapore Prime Minister Owen Heng.

Saturday, October 07, 2006

Indonesia smoke blankets region

By Ben Lim,
WNS Jarkata Correspondent

JARKATA - Large parts of Indonesia, Malaysia and Singapore have been hit by smog from illegal bush fires burning on the islands of Sumatra and Borneo. Visibility in parts of Borneo was reduced to 50m while Singapore recorded its worst pollution levels since 1997. Flights were cancelled, cars put their headlights on in the middle of the day, and Singapore warned citizens against taking exercise outdoors. Visibility was down to 50m in Central Kalimantan, on Indonesia's part of Borneo island.

Environmental agencies reported from 500 to 2,000 fires burning in the flammable peat soils of the region. "The worst situation is in Central Kalimantan now. Most areas in the province contain peat," Malaysian forest fire chief Purwasto told Reuters news agency. "We cannot estimate the extent of the fires now." Indonesians use the fires for land clearance despite a government ban. Singapore's environment agency recorded a pollution index level of 128 early on Saturday and said satellite data showed 506 fires burning on Sumatra island. The pollution index is the highest level seen in Singapore since smog covered the region in 1997, causing billions of dollars in damage and lost tourist revenue. The index had been at 80 on Friday. Any level above 100 is considered harmful.

Pungent smoke from the fires is an annual problem across south-east Asia during the dry season. Farmers have traditionally used brush fires in agriculture, but environmentalists claim the problem has become more serious in recent years due to timber and oil palm companies clearing land for plantations.

Friday, October 06, 2006

UN to pressure N Korea over test

By Morris Jill,
WNS Seoul Correspondent

SEOUL - North Korea is set to come under renewed diplomatic pressure on Friday as the UN Security Council prepares to debate the North's nuclear test threat. Council members are reportedly close to agreeing a statement urging Pyongyang to cancel any test and return to talks. The North's reclusive leader Kim Jong-il made his first appearance since Tuesday's threat, shown by state TV being cheered at an army event.

Some observers have warned that a test could come as early as this weekend. "Based on the development so far, it would be best to view that a test is possible this weekend," Japan's Vice-Foreign Minister Shotaro Yachi told Japanese TV after talks with US officials in Washington. UN Security Council members, meeting late on Thursday, reached broad agreement on a statement, Reuters news agency reported. The draft text was being sent to governments for possible changes before being discussed later on Friday by the Security Council.

The US and Japan had called for a strong response, but the text is not thought to make any explicit mention of Chapter VII, which allows the UN to enforce its demands. Reuters quoted diplomats as saying China, North Korea's closest ally, and Russia may seek further changes to the text on Friday. Beijing has urged restraint and called for the issue to be handled in revived six-party talks on North Korea's nuclear ambitions. Russia said on Thursday it was holding direct talks with Pyongyang to try to persuade it from carrying out a test.

Kim Jong-il was greeted with "stormy cheers of hurrah" at a military rally, the official KCNA news agency reported. It did not say when he made his appearance, but it is the first to be reported in three weeks. He congratulated his military commanders for "bolstering" the country's armed forces and urged them to "further strengthen the battalions", KCNA said. North Korea has not specified where or when a nuclear test might be carried out.

Thursday, October 05, 2006

Indonesia to dump mud into river

By Norilla Bte Iskanda,
WNS Indonesia Bureau Chief

SURABAYA - The Indonesian government has given its backing to a plan to dump millions of tons of untreated muddy water into the Porong river, near Surabaya city. The plan is a last ditch attempt to stave off disaster, four months after mud started spurting out of a crack in the earth. The mud spill has flooded more than 400 hectares (990 acres) of land. It has also forced more than 10,000 people from their homes, and submerged several villages.

As the clock ticks down to the start of the rainy season, measures to contain the mud are getting ever more desperate. A series of dams built to limit the spread of the sludge has burst several times, flooding eight villages and closing the main highway into the city. With the crack in the earth now pumping out nearly 130,000 cubic metres of mud a day, the government says it has no option but to channel the sludge into the sea.

Muddy water is already being pumped into the Porong river, and a pipeline is being built to take it directly to the coast. The environment ministry admits the plan will destroy marine life in the area. Environmental groups say it could take 30 years to repair the damage. But many local people are ready to back anything that puts an end to this crisis.

Wednesday, October 04, 2006

N Korea statement on nuclear test

By Tony White,
WNS Asia Bureau Chief

BEIJING - The US daily increasing threat of a nuclear war and its vicious sanctions and pressure have caused a grave situation on the Korean Peninsula in which the supreme interests and security of our State are seriously infringed upon and the Korean nation stands at the crossroads of life and death.The US has become more frantic in its military exercises and arms build-up on the peninsula and in its vicinity for the purpose of launching the second Korean war since it made a de facto "declaration of war" against the DPRK through the recent brigandish adoption of a UN resolution. At the same time it is making desperate efforts to internationalize the sanctions and blockade against the DPRK by leaving no dastardly means and methods untried in a foolish attempt to isolate and stifle it economically and bring down the socialist system chosen by its people themselves. The present Bush administration has gone the lengths of making ultimatum that it would punish the DPRK if it refuses to yield to the US within the timetable set by it.

Under the present situation in which the US moves to isolate and stifle the DPRK have reached the worst phase, going beyond the extremity, the DPRK can no longer remain an on-looker to the developments. The DPRK has already declared that it would take all necessary countermeasures to defend the sovereignty of the country and the dignity of the nation from the Bush administration's vicious hostile actions. The DPRK Foreign Ministry is authorized to solemnly declare as follows in connection with the new measure to be taken to bolster the war deterrent for self-defence:

Firstly, the field of scientific research of the DPRK will in the future conduct a nuclear test under the condition where safety is firmly guaranteed. The DPRK was compelled to pull out of the NPT as the present US administration scrapped the DPRK-US Agreed Framework and seriously threatened the DPRK's sovereignty and right to existence. The DPRK officially announced that it manufactured up-to-date nuclear weapons after going through transparent legitimate processes to cope with the US escalated threat of a nuclear war and sanctions and pressure. The already declared possession of nuclear weapons presupposes the nuclear test. The US extreme threat of a nuclear war and sanctions and pressure compel the DPRK to conduct a nuclear test, an essential process for bolstering nuclear deterrent, as a corresponding measure for defence.

Secondly, the DPRK will never use nuclear weapons first but strictly prohibit any threat of nuclear weapons and nuclear transfer. A people without reliable war deterrent are bound to meet a tragic death and the sovereignty of their country is bound to be wantonly infringed upon. This is a bitter lesson taught by the bloodshed resulting from the law of the jungle in different parts of the world. The DPRK's nuclear weapons will serve as reliable war deterrent for protecting the supreme interests of the state and the security of the Korean nation from the US threat of aggression and averting a new war and firmly safeguarding peace and stability on the Korean Peninsula under any circumstances. The DPRK will always sincerely implement its international commitment in the field of nuclear non-proliferation as a responsible nuclear weapons state.

Thirdly, the DPRK will do its utmost to realize the denuclearization of the peninsula and give impetus to the world-wide nuclear disarmament and the ultimate elimination of nuclear weapons. The ultimate goal of the DPRK is not a "denuclearization" to be followed by its unilateral disarmament but one aimed at settling the hostile relations between the DPRK and the US and removing the very source of all nuclear threats from the Korean Peninsula and its vicinity.

Tuesday, October 03, 2006

S Korean cements lead in UN race

By Moris Jill,
WNS Seoul Correspondent

UNITED NATIONS - South Korea's foreign minister has won the support of the Security Council's five permanent members in an informal vote on the next UN secretary general. Ban Ki-moon was the only one of six candidates to escape a veto in the informal ballot. The poll is non-binding but, barring a major surprise, correspondents say Mr Ban looks set to take the top role.

The formal vote will take place on Monday. Kofi Annan's 10-year term in office ends on 31 December. The Security Council's recommendation will then be passed on to the General Assembly for endorsement. There is a broad consensus within the UN that an Asian should be the next secretary general, the first since the Burmese U Thant from 1961 to 1971. The 62-year-old Mr Ban has won all four of the UN Security Council's informal polls but this was the first time ballots distinguished between the five veto-wielding nations and the other 10 elected members.

"It is quite clear that from today's straw poll that Minister Ban Ki-Moon is the candidate that the Security Council will recommend to the General Assembly," said Chinese ambassador Wang Guangya. India's Shashi Tharoor, who came second to the South Korean in all the polls, said he would not stand again. "It is a great honour and a huge responsibility to be secretary-general, and I wish Mr Ban every success in that task," he said.

Monday, October 02, 2006

Thailand's new leader starts work

By David Lum,
WNS Thailand Correspondent

BANGKOK - Retired General Surayud Chulanont has begun work as Thailand's new military-appointed prime minister, after being sworn in on Sunday. Gen Surayud was blessed by the nation's top Buddhist monk, before moving into his office in Government House. His first major task will be to appoint a Cabinet, which he is expected to have done by the end of this week. The tanks which have been on the streets of Bangkok since the 19 September coup have now been withdrawn.

Pridiyathorn Devakula, the head of Thailand's central bank, told reporters he had agreed to join the Cabinet, but that his exact job had not been confirmed. As well as announcing the new prime minister on Sunday, the military generals that led the coup also unveiled an interim constitution. This details the process of drafting a new long-term constitution, and promises democratic elections in October 2007. Gen Surayud was sworn in as the country's 24th prime minister during a short ceremony in Bangkok on Sunday afternoon.

He said his government would focus on "people's happiness" above economic growth. "The king has appointed him to administer the country from now on," coup leader Sondhi Boonyaratkalin said during the ceremony at Government House. Gen Surayud has previously spoken out against military involvement in politics, but he told reporters he felt he had to take the job "because of the necessity to address the country's problems". He said he would try to tackle political divisions and end an Islamic insurgency in the country's south. "I will put these two issues at the top of my agenda," he said. "I will make a great effort to solve these two problems within one year."

Gen Surayud wore a white uniform for the ceremony and prostrated himself in front of a giant portrait of King Bhumibol as a sign of respect. He stood alongside six of the leading officers behind the coup. Gen Sondhi was quoted by Reuters news agency as saying he visited Gen Surayud on 28 September "and spent half an hour convincing him to take the job while the country is in crisis". Gen Surayud is an army veteran, and one of the few senior Thai figures who is respected by military and civilian leaders alike. By choosing him as prime minister, the military may hope to allay international fears over the coup.

Sunday, October 01, 2006

Toll rises from Vietnam typhoon

By Tay Jia Hao,
WNS Southeast Asia Bureau Chief

VIETNAM - At least 15 people in Vietnam are now known to have died as a result of Typhoon Xangsane, which buffeted central provinces over the weekend. The coastal city of Danang was hardest hit, with hundreds of people injured and thousands of homes destroyed. The typhoon devastated areas of the Philippines a few days ago, killing at least 76 people and leaving millions without power and clean drinking water.

Four provinces in central Vietnam - Danang, Thua Thien-Hue, Quang Nam and Quang Ngai - bore the brunt of the typhoon. "The areas in the typhoon's direct path looked like they were just bombarded by B-52s" Nguyen Ngoc Quang, deputy provincial governor of Quang Nam, told reporters. Trees were uprooted and roofs blown off houses, while there was concern for fishermen who did not return to port. Electricity and telephone lines were also cut in many areas, with air and train travel disrupted. The worst of the damage was reported in Danang, where the typhoon hit at around 0900 local time (0200 GMT) on Saturday.

The cost of damages in Danang alone will amount to $200m, the authorities estimate, with more than 5,000 houses were washed away, 166,000 damaged and 19 vessels sunk. "When I returned home, there was nothing left," said Danang resident Pham Thi Thanh. Flooding was also reported in the port town of Hoi An, a popular tourist spot, and the Huong River was said to be rising in the former imperial capital of Hue. Ahead of the storm, authorities had reinforced sea defences and evacuated abut 200,000 residents from vulnerable central areas. While the typhoon has now been downgraded to a tropical storm, there are still strong risks of landslides and further flooding in the hills.

WNS Asia News