French Court to Rule on Lagarde in July

Posted June 10th, 2011 at 7:35 am (UTC-5)
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A French court has delayed until July 8 a decision on whether to open a formal inquiry into claims that Finance Minister and International Monetary Fund candidate Christine Lagarde abused her power.

The delay means the allegations will hang over Lagarde's bid to be the new IMF chief.

Lagarde says she did nothing wrong in a 2008 legal settlement that favored a French businessman, who was also a friend of President Nicolas Sarkozy.

The IMF is expected to announce the candidates for its top post by June 17 and select its next managing director by June 30.

Lagarde would replace another French national — Dominique Strauss-Kahn, who resigned in May over charges of sexual assault.

Syrian Forces Begin Operations in Northern City

Posted June 10th, 2011 at 7:20 am (UTC-5)
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Syrian state television says the nation's army started operations on Friday to “restore security” in the northern city of Jisr al-Shughour near the Turkish border.

State television says the army moved to gain control of the city at the request of residents, who the report says asked the military to arrest “armed gangs” the government says killed 120 security personnel earlier this week. Residents earlier said loyalist soldiers had attacked troops who defected or refused to fire on civilians following a pro-democracy rally in the city last week.

Witnesses said troops and tanks had amassed outside the city on Thursday. But activists say most of Jisr al-Shughour's 50,000 residents had fled, many to Turkey, before the operation began.

Meanwhile, pro-democracy activists called for new demonstrations Friday against Mr. al-Assad's government. Rights groups say at least 1,100 people have been killed in the Syrian crackdown that began in March and more than 10,000 people arrested. In Geneva, the Red Cross called on Syria to give it “meaningful access” to those who have been wounded or detained.

Also Friday, Turkish Prime Minister Recep Tayyip Erdogan said he talked with the Syrian leader in the last few days, pressing him to reform his government. Mr. Erdogan called the Syrian crackdown “unacceptable” and described the treatment of the bodies of women killed by security forces as an “atrocity.”

In Brussels, U.S. Defense Secretary Robert Gates said the “slaughter of innocent lives” in Syria should be a concern for everyone.

Turkish Foreign Minister Ahmet Davutoglu said Thursday more than 2,500 Syrians have entered his country and Turkey says it has no intention of closing its borders. The influx prompted Turkish authorities to set up three camps to handle the crisis.

Residents said thousands more people have escaped to nearby villages just inside Syria and are prepared to cross into Turkey at any time.

Meanwhile, diplomatic efforts are unfolding at the United Nations.

Russia said Thursday it opposes a U.N. Security Council draft resolution condemning Syria for its crackdown on anti-government protesters. Foreign Ministry spokesman Alexander Lukashevick says Syria's unrest does not pose a threat to world peace or security.

He commented a day after European members of the Security Council presented a revised resolution calling for an immediate end to the violence in Syria and for humanitarian access. It also urges Syria's government to enact genuine political reforms.

Separately, the U.N. High Commissioner for Human Rights has accused Syria of trying to “bludgeon its population into submission” with its crackdown on protesters. Navi Pillay said Thursday it is “utterly deplorable” for any government to deploy tanks, artillery and snipers against its people.

Yemeni Jets Attack Islamic Militants, Killing at Least Three

Posted June 10th, 2011 at 7:05 am (UTC-5)
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Officials in Yemen say an air raid on suspected Islamic militants in the southern part of the country has killed at least three people.

Few details of the attack near the town of Jaar were immediately available. One official told the French News Agency the strike killed three relatives of an al-Qaida militant.

Suspected al-Qaida gunmen last month seized the nearby city of Zinjibar after fighting in which scores of soldiers were killed. But troops loyal to President Ali Abdullah Saleh have launched a counter-attack to try to regain control of the city.

In a separate incident, suspected separatists in southern Yemen attacked a military checkpoint. At least three Yemeni soldiers and two militants were killed in the skirmish.

The renewed fighting came as Yemen braced for rival protests supporting and opposing Mr. Saleh's shaky hold on power. Officials report he has been moved out of intensive care at the Saudi military hospital where he is being treated for wounds suffered in last week's attack on his compound.

Saudi and Yemeni officials in Riyadh said Thursday that Mr. Saleh's condition had stabilized and that he would have cosmetic surgery in the coming days.

The embattled leader has not been seen since he was flown for medical treatment to Saudi Arabia.

U.S. and Yemeni officials say Mr. Saleh's wounds from the bomb attack at the presidential compound are far more severe than first disclosed, raising doubts about his return to power. But a Yemeni government website said Thursday his injuries were minor and announced that preparations for his return were under way.

Army units and loyalists in many areas of the capital, Sana'a, fired shots in the air in celebration and Yemen's ruling party said it will organize a “Friday of Loyalty” demonstration. Anti-government protesters also called supporters to take to the streets.

Authorities said government troops have killed at least 12 suspected al-Qaida members in southern Abyan province as the nation struggles with a militant Islamist insurgency in the wake of Mr. Saleh's departure.

Nearly 400 people have been killed since a popular uprising against Mr. Saleh began in January.

European Markets Lower at Midday

Posted June 10th, 2011 at 7:00 am (UTC-5)
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European stock markets were mostly lower in midday trading Friday.

London's Financial Times 100 index was down slightly , to 5,855. The CAC-40 in Paris was down three-tenths of a percent , to 3,868. And the DAX in Frankfurt was up two-tenths of a percent , at 7,175.

The S&P futures contract was down four points, indicating a lower opening for U.S. markets.

In Asia, Tokyo's Nikkei index gained half a percent , to close at 9,514.

Hong Kong's Hang Seng index dropped eight-tenths of a percent , to end at 22,420.

Gold was trading at $1,541.75 an ounce.

The U.S. dollar slipped against other major currencies.

New Airstrikes Target Libyan Captial

Posted June 10th, 2011 at 6:55 am (UTC-5)
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A new round of suspected NATO airstrikes shook the Libyan capital early Friday, a day after allied and Arab nations pledged more than $1.1 billion to help Libya's opposition council and civilians affected by the country's conflict.

The 22-member Libya Contact Group announced the series of financial measures Thursday as it met in the United Arab Emirates to plan for a Libya without its embattled leader, Moammar Gadhafi.

Italy – Libya's former colonial ruler – said it will commit nearly $600 million in assistance to Libyan rebels, while France pledged more than $420 million in support. Kuwait, Qatar and Turkey also promised funds.

The United States did not offer direct aid to the rebels, but will provide an additional $26.5 million in humanitarian relief to all Libyans.

U.S. Secretary of State Hillary Clinton told the conference Mr. Gadhafi's “days are numbered.”

Russia's special envoy to Libya, Mikhail Margelov, says Mr. Gadhafi has lost the “moral right to lead Libya” after attacking his own people. Margelov recently met with rebel leaders in their stronghold Benghazi, and is planning to meet with members of Mr. Gadhafi's government in his efforts to mediate an end to the crisis.

Clinton said talks are under way with people close to Mr. Gadhafi that have raised the “potential” for a transition of power. Australian Foreign Minister Kevin Rudd also referred to what he called multiple “feelers” from the Tripoli government, saying the Libyan leader's end “may come sooner” than expected.

Australia has joined a handful of countries – including France, Britain, Italy and Qatar – in formally recognizing the rebel council as the legitimate government of Libya.

In Washington Thursday, CIA chief Leon Panetta said in Senate testimony that the NATO military operation and strong economic sanctions are putting tremendous pressure on Mr. Gadhafi's government. Panetta is U.S. President Barack Obama's nominee to replace Robert Gates as defense secretary.

Meanwhile, Senegalese President Abdoulaye Wade met with Libyan opposition leaders in the rebel stronghold, Benghazi. He told journalists Thursday the sooner Mr. Gadhafi leaves, the better.

Heavy NATO bombardments hit military and command targets across Tripoli Tuesday and Wednesday in some of the heaviest strikes since March. The assaults included air raids near Mr. Gadhafi's residential compound.

Mustafa Shaban commented on Thursday, a day after the chief prosecutor of the International Criminal Court said investigators have evidence Mr. Gadhafi ordered mass rapes of women considered disloyal to his regime.

Luis Moreno-Ocampo said his team is looking into whether the Libyan leader provided soldiers with Viagra-like medicines in order to promote the rape of women. He said he may present new charges of mass rape against Mr. Gadhafi.

Afghan President in Pakistan for Talks

Posted June 10th, 2011 at 6:50 am (UTC-5)
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Afghan President Hamid Karzai is in Pakistan for talks on bilateral ties, in his first visit since terrorist leader Osama bin Laden was found and killed in Pakistan in a U.S. raid last month.

Mr. Karzai is holding talks Friday and Saturday with Pakistani President Asif Ali Zardari and Prime Minister Yousuf Raza Gilani, despite tensions about the discovery of bin Laden.

Mr. Karzai has said in the past that the war against terrorism should focus on Pakistan rather than Afghanistan.

The talks are not expected to produce major breakthroughs on mending the deep distrust between the two countries.

They are likely to focus on Afghan efforts to negotiate peace with the Taliban. Pakistan has better relations with the tribal group and is seen as a key player in the peace negotiations.

Discussions will also include cooperation in the war against terror and expanding trade and business ties. A joint peace commission is also scheduled to meet during Mr. Karzai's two-day visit.

China Rejects Vietnamese Report of Maritime Incident

Posted June 10th, 2011 at 6:35 am (UTC-5)
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Chinese officials also rejected that allegation and complaints from the Philippines about what Manila considers illegal Chinese intrusions into its waters. China's ambassador to the Philippines said the South China Sea is Beijing's territory and has been for centuries, but Liu Jianchao said Thursday in Manila that China will adhere to a 2002 agreement on developing the region.

The Philippines, Vietnam, Brunei, Taiwan and Malaysia all claim parts of the South China Sea and scores of uninhabited islets and outcroppings in the region. In recent months, the Philippines and Vietnam have reported several incidents involving Chinese vessels within their 370-kilometer maritime exclusive economic zones.

The recent incidents are raising alarm among Southeast Asian nations, despite Chinese assertions that it favors peaceful economic cooperation in the South China Sea, and promises it will not resort to force to defend its interests in the region.

Both the Philippine and the Vietnam governments say they intend to defend their territorial waters. Vietnam's Prime Minister Nguyen Tan Dung, in a report issued Thursday, said his country is prepared to “struggle against intrusion” into its waters.

The United States has called on all parties with claims in the South China Sea to resolve disputes peacefully and to ensure freedom of navigation in the crucial shipping route. Beijing says it will discuss disputes with other claimants bilaterally, but members of the Association of Southeast Asian Nations want multilateral talks.

Asian Markets Close Mixed

Posted June 10th, 2011 at 6:35 am (UTC-5)
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Asian stock markets closed mixed Friday.

Tokyo's Nikkei index gained half a percent , to close at 9,514.

Hong Kong's Hang Seng index dropped eight-tenths of a percent , to end at 22,420.

Elsewhere, share prices were lower in Taipei, Seoul, Mumbai, Singapore, Bangkok, Jakarta and Manila. Markets closed higher in Shanghai, Sydney, Kuala Lumpur and Wellington.

The U.S. dollar was quoted at 80.14 yen, down two-tenths of a yen from late Thursday.

Gold was trading at $1,542.25 an ounce.

Russian Colonel Killed in Moscow

Posted June 10th, 2011 at 6:15 am (UTC-5)
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Russian police say a former army colonel convicted in 2003 of killing an 18-year-old Chechen woman has been killed.

Officials say Yuri Budanov was shot dead Friday in Moscow.

The Russian news agency Ria Novosti say Budanov, who received a 10-year sentence, was released early on parole in 2009.

Budanov's case came to symbolize army abuses in the war in Chechnya.

US: NATO Members Must Pay Fair Share

Posted June 10th, 2011 at 6:10 am (UTC-5)
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U.S. Defense Secretary Robert Gates has warned that NATO members that they must increase their defense spending commitments or the alliance will face a “dim, if not dismal” future that might not include the United States.

Gates spoke at the Security and Defense Agenda think tank Friday in Brussels, in what is expected to be his last major policy speech before retiring at the end of the month. He said U.S. lawmakers are losing patience with covering three-quarters of defense spending for the coalition.

Gates noted that all 28 NATO members voted for the mission against Libyan leader Moammar Gadhafi, but fewer than half have participated. He said some members who are taking part are beginning to run short of munitions after only 11 weeks, requiring the United States to make up the difference.

He said unwillingness or inability to contribute has also affected operations in Afghanistan, where he said the coalition has “struggled, at times desperately” to sustain a deployment of up to 45,000 troops.

He said finishing the mission in Afghanistan must be done in a united way, not dictated by each member's domestic financial situation.

And he said if other nations fail to step up their contributions to the more than 60-year-old transatlantic alliance, future U.S. administrations might not consider the return on its investment worth the cost.

Gates attended his final meeting of NATO defense ministers in Brussels Thursday and said substantial military progress is being made on the ground in Afghanistan, but warned that those gains could be threatened if the transition to full Afghan government control of security is not made in a deliberate, organized and coordinated manner

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