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An independent summary of the world news seen from the Pacific

The Independent New York Times

Tokelau, Saturday, December 6, 2008 Weekend Edition, editor - contact sumpinein@gmail.com

China is not India's greatest economic challenge. India is. How its leaders respond to the Mumbai attacks will tell the business world what it wants and needs to know. Not just whether to pull back from India but how risky pushing forward will be. Today India is being tested as never before. And in the coming months the world, and in particular the global business community, will be watching for the answer to a crucial question: whether India can overcome its greatest obstacles to advancement, which include both terrorism and India itself. The U.S. economy is five times greater than China's and 15 times that of India's, with about one-fourth the population of either nation, however China and India, with their faster growth rates, it has been frequently predicted they will eventually catch up with the US and EU in terms of pure economic size. For China, as early as 2045; for India, some 20 years later. Does this mean the West will be overtaken? Straight-line calculations have assumed all three nations will enjoy smooth upward rides. No recessions, no banking breakdowns, no political crises, no disruptive social uprisings. Things have changed: the economic crisis is making its effects felt in the BRICs and political instability could follow with the Mumbai attacks and unrest in China's provinces grows.

FLIGHTS RESUME AT BANGKOK AIRPORT

BRITAIN TO JOIN EURO?

CULTURE

CREOLE STOMP

This band incarnates the traditional values of Cajun music in the USA. The Cajuns live mainly in Louisiana and are the descendants of Acadian exiles. Today, the Cajuns make up a significant portion of south Louisiana's population, and have exerted an enormous impact on the state's culture.

Every now and again a band comes along that redefines a genre of music and carries it even further...that group is Dennis Stroughmatt and Creole Stomp.  Always leaving audiences wondering "who are they?," and "where do they come from?," Dennis and CS are based in southern Illinois and happily tell audiences "we are from upper Louisiana."  While this may bring chuckles from many and nodding heads from others "in the know," this is the group that does represent "old upper Louisiana." Dennis learned to speak French and play French Creole music in a southeast Missouri French Creole community before moving to the state of Louisiana.  After returning to Illinois from Louisiana, Dennis began a long odyssey that eventually culminated in the forming of Creole Stomp in 2002. And since that time he and his band have carried the torch of French Creole music and culture across  North America performing a blend of music from the state of Louisiana and old upper Louisiana.  Their unique sound and mix of ancient and modern Mississippi River valley musical tradition positions them as the only band to encompass French Creole and Folk Music from the entirety of the old Louisiana Territory.  And although Dennis continues to play with many of his Louisiana based friends on occasion, you can always find him at the helm of Creole Stomp playing somewhere from San Diego to Boston

Read DEATH OF A FINANCIER by JOHN FRANCIS KINSELLA

Tom Barton, a City mortgage broker, decides to quit his business in the wake of the subprime crisis and arrives in Kovalam, in the south of India. In the Maharaja Palace he finds himself in the company of holiday makers from the UK, Scandinavia and Russia. Stephen Parkly, the CEO of a successful City bank, and his young wife Emma are taking a well earned year end break. Parkly falls gravely ill with a mysterious infection, whilst back in the City, unknown to him his mortgage and investment bank, West Mercian Finance is in grave difficulties. Ryan Kavanagh, a doctor, comes to Emma’s aid with the help of Barton, after an attempted cover-up by the Indian authorities, who fear for their tourist industry and more especially medical tourism, as the disease threatens the resort with the tourist season in full swing. Thousands of British tourists enjoying the sun are unaware of the pending disaster, many are equally unaware their savings about are to be wiped out in the West Mercian collapse.

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More books by John Francis Kinsella from Vincennes Books: Borneo Pulp, The Legacy of Solomon, Offshore Islands, The Lost Forest

Could this be the world's oldest living creature?

The span of history a giant tortoise can live through is vividly illustrated in a remarkable picture on the British island colony of St Helena in the year 1900. One of the men behind them (in our second picture) is believed to be an Afrikaner captured during the Boer War, which lasted from 1899-1902. The remote South Atlantic island, the final prison of Napoleon from 1815 until his death there in 1821, later housed a Boer War prison camp holding 6,000 inmates. The scene is thought to be the grounds of Plantation House, the St Helena governor's residence in the island capital of Jamestown, where three giant tortoises were brought as ornamental pets from the Seychelles in the Indian Ocean in 1882. The animals may have been 50 years old then, and so would be about 70 when the photo was taken – and one of the three, named Jonathan, is still alive. At a possible age of 175-plus he would be the world's oldest living animal. The previous oldest-known tortoise was thought to be Harriet, a giant Galapagos land tortoise who died, aged 175, in 2005 in Australia.

BANGKOK AIRPORT SIEGE ENDS

The first passenger flight into Bangkok's Suvarnabhumi airport since anti-government protesters lifted an eight-day blockade on Wednesday landed at around 2.15pm. The Thai Airways flight was carrying 305 passengers from the southern resort island of Phuket. Flag carrier Thai Airways said in a statement that six flights would leave the main Suvarnabhumi international airport on Wednesday and early Thursday, flying to Sydney, New Delhi, Narita, Frankfurt, Seoul and Copenhagen. Mr Vudhibhandhu Vichairatana, chairman of the board of Airports of Thailand, said that full operations would resume at Suvarnabhumi on Thursday. 'We will try and get everything back to normal as soon as possible,' he told reporters at the airport as protesters from the anti-government People's Alliance for Democracy, PAD, packed up their belongings and trickled out. Flights had been landing at the U-Tapao naval base south-east of Bangkok, which has been standing in as the main exit point for travellers, who have also been escaping from Chiang Mai in the north and Phuket. Hundreds of PAD supporters started leaving the airport in cars, taxis and buses after the 10am  time set by PAD leaders for the end of their protests at Suvarnabhumi and other sites. They gave up their siege of Suvarnabhumi and the smaller Don Mueang domestic airport after a court dissolved the ruling party and forced out the prime minister, one of the key demands of the PAD. -- AFP, REUTERS

A Mumbai terrorist captured by police has confirmed to interrogators that a woman in Islamic dress guided him around the city before and after the attackers went on a shooting spree.

Investigators said that an urgent alert had been issued to officers to find the woman referred to by Azam Amir Qasab as "sister." Eyewitnesses had seen Qasab buying dried fruit with the burqa-wearing woman near Mumbai's main train just minutes before the attack was launched. Residents near the Cama hospital, which was attacked by Qasab and a partner Abu Dera Ismail Khan, had said a woman helped Qasab after the attack on the station. A shopkeeper also insisted at least one woman had accompanied the pair. "The man started firing towards the hospital immediately after entering," said one eyewitness. "Moments before, the woman, in a salwar kameez underneath her burqa, had even tried to enter the hospital by climbing a water pipe. As the man continued firing, the woman, who wasn't armed, knocked on one of the houses. They then asked the family for water." While Qasab and his fellow gunman were cornered in a police ambush, the woman got away. Officials said drug paraphernalia, including syringes, was recovered from the scene of the attacks, which killed almost 200 people. The heavily built men, who had undergone training at a special marine camp established by the Lashkar-e-Taibat (LeT) terrorist group in Pakistan, had also used steroids to build a tougher physique. "We found injections containing traces of cocaine and LSD left behind by the terrorists and later found drugs in their blood," said one official. "There was also evidence of steroids, which isn't uncommon in terrorists. "These men were all toned, suggesting they had been doing some heavy training for the attacks. This explains why they managed to battle the commandos for over 50 hours with no food or sleep." One terrorist used the drugs to keep on fighting despite suffering a life-threatening injury. Drugs are commonly used in India by workers in jobs where a lack of sleep is demanded, such as truck drivers and security guards.

OIL PLUNGES AND...DUBAI

A visit to the Hotel Atlantis in Dubai in the summer of 2007 saw 12,000 workers toiling in 45-degree heat to build the 1500-bedroom hotel at the top of the crescent of man-made land that guards the Palm Jumeirah. More than 30,000 limes were handed out that day to help the parched builders cope with the heat. Nearly 7000 of the workers employed by UK contractor Laing O'Rourke lived in a vast camp on the site. Last week 2000 "world celebrities" were shipped in to a £13 million launch party of the hotel. The guests included Oprah Winfrey, Robert De Niro and a large number of celebrities unrecognisable to anyone aged over 50. A well-covered Kylie Minogue did her rear-wiggling act. Large numbers of fireworks exploded into the night sky. Now the party is over. Not just for Sol Kerzner, the South African billionaire who half owns the £750 million hotel, but also of course for Dubai itself, which owns the other half, through its investment arm Istithmar. In the space of a few weeks the stock market has collapsed, along with property prices. The exodus of UK architects, engineers, surveyors and builders is about to begin as each of the big developers begins to fire expatriate staff. Over 600 are reported to have been let go in the past week. On Tuesday Mohamed Alabbar, a member of Dubai's executive council and chairman of Emaar Properties, confessed the government and its state-affiliated companies had an $80 billion (£52 billion) overdraft, which is nearly 150% of the gross domestic product of this tiny state. Alabbar said that Dubai's three largest property companies will now have to hang together rather than hang apart. His own company Emaar, which is building the Burj Dubai, the world's tallest building, will now collaborate with Nakheel, which built the palm islands off the Dubai coast, and Dubai Holdings, the government's property unit. The three control 70% of Dubai's property development industry, an industry now in very deep trouble. In the summer of 2007 it was perfectly obvious that Dubai was heading for a crash. Everybody knew. But nobody wanted to say it out loud. They knew because there were plans on the table to build enough office space for half a million workers by 2010. The population of Dubai is no more than two million. They knew because there were plans to build 153,000 flats and villas by 2010. That is a whole lot more homes than Britain will build next year. Like here, prices are falling, down 40% on the Palm Jumeirah in the space of a few weeks. And there are still plenty of flats left in the world's tallest tower, where work is due to finish next year. On the 25th floor you can buy a one-bedroom unit, priced now at a "reduced" £1.3 million. Plans for an even taller tower announced only weeks ago suddenly look stupid. As does the idea of local developer Tanweer of building a giant Ferris wheel in a five million square feet entertainment park in cooperation with Hollywood studio DreamWorks. The Dubai dream is over. Even Sol Kerzner recognised that. "If I had to do the party all over again, I might do it recognising the fact that we're living through a bit of a tough economic environment."

SENTENCED TO BLINDING

TEHRAN: An Iranian man has been sentenced to be blinded under Islamic laws in retribution for blinding a woman by throwing acid on her face for rejecting his marriage proposal, press reports said on Thursday.
A Tehran criminal court on Wednesday issued the ruling against the jilted suitor identified as Majid, 27, who confessed to throwing acid on Ameneh Bahrami's face four years ago, Kargozaran newspaper said.
Despite years of treatment in Spain, Bahrami has lost sight in both eyes and still bears serious injuries to the face and body, the report said. The newspaper did not say whether the convict would appeal against the ruling that he also be blinded by acid.
Under the Sharia-based law practised in the Islamic republic, those convicted of causing intentional physical injury are punishable by "qisas", or the eye-for-an-eye Islamic penalty.

BANK OF ENGLAND CUTS RATES

The Bank of England has slashed interest rates by another 1% as policymakers stepped up their battle to stave off a deep recession. The dramatic percentage point cut takes the cost of borrowing from 3% to 2% - a rate not seen since 1951 and equal to the all-time record low in the UK. It follows last month's shock 1.5% cut - the biggest for more than 27 years - and comes amid mounting concern that the UK is facing a deep and prolonged recession. Rates have not been below 2% since the Bank was formed in 1694 but economists said it was now only a matter of time before they are cut again. Britain's biggest mortgage lender Halifax confirmed it would pass on the cut to its 600,000 borrowers with base rate tracker deals. But it is unlikely that all borrowers with standard variable rate mortgages will see the full benefit, despite increasing pressure from the Government. At the same time the EU Central Bank cut its rates by 0.75% to 2.5%. The pound sterling fell to under 1.15 euros whilst China has let the yuan slide to prop up its faltering economy just as Paulson asked for a stronger Chinese currency.

Barack Obama’s grandfather was imprisoned and brutally tortured by the British

Barack Obama’s grandfather was imprisoned and brutally tortured by the British during the violent struggle for Kenyan independence, according to the Kenyan family of the US President-elect. Hussein Onyango Obama, Mr Obama’s paternal grandfather, became involved in the Kenyan independence movement while working as a cook for a British army officer after the war. He was arrested in 1949 and jailed for two years in a high-security prison where, according to his family, he was subjected to horrific violence to extract information about the growing insurgency.

 HORSE PLAY

Leeroy Le Gallais, 46, broke into the animal's stable on two separate occasions to perform sex acts on the terrified animal. During his first attack he used a bucket to stand behind the horse, called Calico, but was caught after leaving his underwear at the scene. He was given a three-year probation order, but just months later returned to have sex with the same horse at the Castel Stable in Guernsey. On the night of the second attack, on April 25 this year, Calico's owner Michael Wortley checked on the animal in his stable at 6.30pm. The 20-year-old bay gelding was covered with a blanket but when Mr Wortley returned in the morning the blanket was on the floor. A mounting stool that was left outside the stable had been taken inside and police immediately suspected Le Gallais was responsible. Le Gallais, of St Peter Port, Guernsey, was jailed for three years at Guernsey's Royal Court after admitting having sex with the animal. He told the court: "I had a few beers, I went to the stable and interfered with the horse." Le Gallais said his second attack came after he ate in a restaurant and drank a few glasses of red wine before visiting a bar. Le Gallais initially denied any knowledge of the matter but when told by police that forensic samples had been taken he admitted going to the stable. Sentencing him to three years, Judge Russell Finch, said Le Gallais was not of previous good character and the probation order breach was an aggravating factor.

CHINA DEVALUES

The central bank has shifted the central peg of its dollar band twice this week in a calculated move that suggests Beijing aims to offset the precipitous slide in Chinese manufacturing by trying to gain further export share abroad. The futures markets are pricing in a 6pc devaluation over the next year. "This is clearly a big shift in policy and we are now on alert," said Simon Derrick, currency chief at the Bank of New York Mellon. The move follows a Politburo speech by President Hu Jintao warning that China is "losing competitive edge in the world market".

OETZI'S FIRST AID KIT

A 5,300-year-old mummified iceman unearthed in the Alps may have been carrying a prehistoric version of tin foil and an ancient first aid kit. Scots researchers found fragments of different mosses in the stomach of Oetzi, whose remains were found in the Italian Alps in 1991. The discovery baffled scientists, as mosses have no nutritional value and would not be eaten. But analysis has revealed he may have used one type of moss, known to have antiseptic properties, to dress a wound. Another type could have been used to wrap a snack of red deer and ibex meat, like a Neolithic version of tin foil. Professor James Dickson, senior research fellow from the University of Glasgow, revealed Oetzi is the first glacier mummy to have fragments of mosses in his intestine. He said: “Mosses are not nutritious or palatable, so you can’t say he was eating it. My explanation is that it was in contact with the food he was carrying or perhaps wrapping it.” Oetzi had suffered a deep gash on his right hand shortly before he died and a fragment of Bogmoss discovered in the stomach may have been used for its antiseptic properties. Professor Dickson said: “Bog mosses were used as wound dressings right up until the Second World War. “We don’t know if prehistoric people knew of these properties, but my opinion would be that they did.”

INDIAN NAVY DESTROYS THAI FISHING TRAWLER

The alleged pirate ship that was blasted out of the water by the Indian Navy in the Gulf of Aden last week was actually a legitimate Thai fishing trawler that had been seized by pirates earlier in the day, the boat's owner said Wednesday. The hijacking of the Ekawat Nava 5 far out at sea; its apparent and immediate conversion to a "mother ship" for the pirates; the gunfight that led to its fiery night time sinking; and the harrowing tale of a lone surviving crewman illustrate the dangers and the legal undertow that surround many of the recent hijackings in East African waters. The Ekawat Nava 5, with a crew of 16, was hijacked on the morning of Nov. 18, according to Wicharn Sirichaiekawat, the managing director of Sirichai Fisheries, which owns the boat. The boat had a GPS tracking device on board, Wicharn said by telephone from Bangkok. The company immediately reported the hijacking and the boat's location to the International Maritime Bureau in Kuala Lumpur, the clearinghouse for reports of piracy. The bureau broadcast the news of the hijacking to various ports, other ships in the area and the coalition of navies that helps maintain a maritime security corridor in the gulf.
 

GM IN FREE FALL

General Motors Corp reported a 41 percent drop in overall U.S. sales for November, saying continued economic uncertainty was hurting consumer confidence. The sales results, reported on Tuesday, came as the No.1 U.S. automaker was set to submit an extensive restructuring plan to Congress in support of a $25 billion rescue package for the auto industry. GM sold 154,877 vehicles in the U.S. market in November, compared with 263,654 a year earlier. The company said it was extending a "Red Tag" sale with lower vehicle prices and cash-back offers through Jan. 5. GM expects first-quarter 2009 production in North America to be down 32 percent from a year earlier, based on a plan to build 600,000 cars and trucks in the period, it said. "The consumer is scared and sitting on the sideline. We need appropriate economic stimulus to get the consumer back in the game," GM U.S. sales chief Mark LaNeve said in a statement. GM estimated that industry wide U.S. vehicle sales dropped 34 percent in November, extending a downturn that has accelerated amid financial market turmoil.

Celebrity crunch: property firm to the stars, aAim, goes bust

The plummeting property market claimed a host of celebrity victims yesterday when companies whose investors include Sir Alex Ferguson, Sir David Frost and Grant Bovey collapsed into administration. The Times has learnt that aAim, a £3 billion property investment company backed by HBOS and chaired by Sir David, has gone into administration. It is feared that shareholders will lose all their investments. aAim spent billions of pounds on properties in Britain and mainland Europe, before the market fell last summer. Property prices in Britain have dropped by as much as 35 per cent since then. AAim had a number of well-known sponsors. Sir Alex, the Manchester United manager, was still listed as a founder shareholder and investor last night. “I have been impressed by the energetic team, their clarity of vision and by the consistent high returns they have delivered,” Sir Alex is quoted as saying.

HILLARY CLINTON APPOINTED OBAMA'S SECRETARY OF STATE

THE GREAT DEPRESSION

SCENES OF BLACK FRIDAY STAMPEDE AFTER US CELEBRATION OF THANKSGIVING

UNCLE SAM RULES THE WAVES

The nuclear powered aircraft carrier George Washington is the crown jewel of the U.S. Seventh Fleet, a huge armada of 60 to 70 ships, 200 to 300 aircraft and 20,000 sailors and Marines. Most are, like the GW, based just south of Tokyo. One of the primary missions of the floating airbase is to "sanitize" the seas around it, using active and passive sonar, helicopters and an array of secret gadgetry.

READING DEATH OF A FINANCIER

THE CREDIT CRUNCH SONG

CORPORATE JET CUT BACKS

It is the great company jet fire sale. Everything must go – and quickly. For the credit-crunched giants of corporate America, living on the generosity of the taxpayer, it ill behoves executives to fly luxury class, and a string of expensive aircraft are finding their way on to the market. The bosses of the big three Detroit car-makers were making a self-flagellating road trip yesterday from Motor City to Washington, where they will plead for a $34bn (£23bn) government hand-out this morning, a fortnight after being ridiculed for turning up at their last meeting on $20,000-per-flight corporate jets. And Citigroup, which just 10 days ago palmed off up to $306bn in potential losses on to the US government, was also reported to be selling two of its fleet of aircraft, decked out with lush dining chairs and a well-stocked kitchen. The sales threaten to usher in an era of penury for a cadre of executives who are used to flying on the company jet not just for business trips but also on holiday. For the American public, bitter at forking out more than $1trn so far during the credit crisis to bail out Wall Street banks and other companies, it offers one small signal that boom-time corporate excess is being curbed. A small Maryland broker is hawking two Dassault Falcon jets understood to belong to Citigroup, the banking giant brought to the brink of bankruptcy last month by billions of dollars of losses on sub-prime mortgages. The government has already put in $45bn from the bailout fund and promised more if necessary.
Since food prices began to rise 100 million more people have been pushed into poverty, according to the World Bank, with as many as two billion on the verge of disaster. Almost half the world's population, let's remember, live on less than $2.50 per day. Millions die annually of hunger and starvation, and more than a billion do not have access to fresh water. With the world financial crisis these numbers are poised to rise dramatically with population growth, dwindling natural resources and higher consumer prices across all goods and services. So as the stock market tumbles and the world economy falters, it's important to remember that it's more than financial losses we are talking about, it's the loss of life.