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"United We Stand"

 

Asian American Business Roundtable (AABR)
 
Rawlein G. Soberano. Ph.D., President
 
20224 Thunderhead Way Suite B
Germantown, MD 20874
 
Phone: (301) 601-9038
Toll Free: 1-866-215-4365 (PIN# 4766)
Fax: (301) 601-9430
Email: aabr89@aol.com
 
 
 

AABR Business Bulletin

      Electronic Newsletter

     Vol. 95 No. 189                                                    June 2, 2008

General    Private Sector    Federal Government    International    Miscellaneous

 I. General                    Member Login

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II. Private Sect           Member Login

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 III. Federal Government       Member Login

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IV. International

 

               

 

IV. International (06-02-08)

 

. Nepal has belied prophecies of a post-election upheaval. All sections of the country and its political spectrum appears to have accepted the Maoist victory in the polls to the constituent assembly. No one has rejected the results. But the same cannot be said of some quarters in India.

     . Six years ago the area around Samboja in Borneo was like much of the world’s tropical rainforest: denuded. The trees have been cut for timber, the land burnt, and in place of what should be some of the richest biodiversity on the planet were thousands of acres of grass.

     . Many countries are making plans to supply large amounts of food aid to North Korea. The US announced that it would send 500k tone of rice. South Korea, after several months of saying it would condition food aid on removal of nuclear weapons, now says it wants to talk with North Korea about providing food aid.

 

. China will take the brunt of the US economic slowdown that is still unfolding over declines in home values. Europe and Japan will follow the US downward as their home prices collapse too. Consumers will give up, and that will hurt export economies around the world. China’s economy is heavily export-oriented (38% of its GNP).

     . Part of the problem is income. Just 8% of Chinese earn enough to affect the domestic economy positively, and even so, Chinese save nearly a third of their pay. Since they don’t spend, and state banks pay below-inflation rates, the Chinese themselves have been driving up domestic stocks. They cannot now invest abroad at all.

     . China appeared to bend to international pressure as it announced it would meet with envoys from the Dalai Lama, an unexpected shift that comes as violent Tibetan demonstrations in W. China have threatened to pass a pall over the Beijing Olympics in August.

 

. A new law in China requires companies to provide contacts that include pension and insurance contributions. It also requires companies to pay workers who are fired a month’s wages for every year worked; 1.5x the normal rate for overtime; double time on weekends; and triple time on official holidays, putting an end to exploitation and abuse of workers, e.g., forced labor, withholding of pay, unwarranted dismissals, among others.

     . For companies already struggling with inflation, high energy costs, the falling dollar and environmental crackdown, the new law has been devastating, exacerbated by growing cost of dong business in China in places like Pearl River Delta in South China, for 20 years synonymous with cheap labor and the engine behind China’s rapid growth.

      . A survey in March by the American Chamber of Commerce in Shanghai and Booz Allen Hamilton found that a 5th of companies with foreign ownership or investment have concrete plans to move some or all of their operations out of China. In the Pearl River Delta, an estimated 10k companies are planning to scale back or shut down, according to the Federation of Hong Kong Industries.

 

. Despite the devastation, China has initially rejected of help from foreign aid workers, including search-and-rescue experts from Australia, dog handlers from the Czech Republic, and fire fighters from Japan. This reflected China’s refusal to permit entry to others reflected its distrust of outsiders, particularly foreign non-governmental organizations.

     . In Euxin, parents blamed the collapse of a primary school from shoddy materials which they said were the result of corruption by officials responsible for making sure the school was safe. To back up their contention, they pointed out that teachers’ dormitory on one side and the administrative office on the other stood firm, while the classroom in the center buckled immediately, killing 300 children.

     . The official death toll rose to 42,069 with nearly 200,000 injured. China says it expects the number of dead to rise to 70,000.  Many of the dead are school children. The scale of destruction is so vast is so vast that it is difficult to imagine a carefree crowd in Beijing when the Olympic Games open in August.

     . Tens of thousands of people are living in makeshift tents along the streets and parks in Dujiangyan alone. With so much attention focused on the rescue, they say they have no information about whether the government will rebuild their homes or when they can move into some homes and resume their lives.

 

. Eight is an auspicious number in Chinese tradition, ad 2008 was supposed to be a joyful year, a time for celebrating at the Beijing Olympics and basking in international recognition of the country’s tremendous program under the leadership of the Chinese Communist Party (CCP).

     . An uprising in Tibet focused the world’s attention on China’s abuse of human rights. The worldwide Olympic torch relay turned into a magnet for protest embarrassing Olympic organizers, angering nationalistic Chinese and souring the mood for the Beijing Games.

 

     . Pres. Hu Jintao and his lieutenants appeared to realize what was at stake. The head of CCP’s Central

Discipline Inspection Commission publicly warned public officials that their careers would depend on how they handled the crisis.

 

. The Japanese government appeared resigned to the possibility that the US may reach agreement with North Korea, and remove it from a list of rogue nations that sponsor terrorism, without addressing issues that Japan regards as fundamental to its national interest.

     . A deal based on nuclear issues would not solve the matter for Japan and it would refuse to normalize relations with North Korea, P.M. Yasuo Fukuda said in a recent interview. The Japanese government wants North Korea to disable 200 to 300 medium-range missiles that Japanese officials say are capable of striking virtually any location inside the country.

     . The Japanese government is also demanding that North Korean leader Kim Jong Il provide credible information about the fate of eight Japanese citizens who were kidnapped in Japan by North Korean agents in the 1970s and 1980s. North Korea maintains they are all dead, while Japan says they are alive.

     . After WW II, Japanese men (and women) have been spare the obligation of serving in the military in any way. Because their Constitution (written by Americans) says war is not the Japanese national doctrine for resolving international disputes or for ensuring national security, they have enjoyed 60 years of peace.

 

. North Korea’s 23 million citizens face a devastating crisis of food shortages and famine and the prospect of hunger-related deaths occurring in the next several months is approaching certainty, according to the

Institute for International Economics in Washington.

     . The US food aid to North Korea reached a peak in 1999 of about 685,000 tons, worth $222 million when the Clinton administration was seeking its own agreement with North Korea, according to Congressional Research Service. US food aid fell dramatically during the Bush administration before ending entirely in 2005 over a dispute about monitoring.

     . The Bush administration said it will restart food aid to North Korea and provide it with more than 500,000 tons of food, the largest one-year amount since 1999.

 

. Burma’s military government has appealed for international help in getting the Irawaddy Delta rice farmers back to their fields after Cyclone Nargis as concerns grew about future food shortages if cultivators miss the upcoming plantation season.

     . UN Food & Agriculture Organization has warned that Delta’s rice farmers, many of whom lost their rice seeds in the cyclone and the tidal surge, have less than two months to get back to cultivation.

     . There have been numerous reports that the military has turned around and sold the supplies for the victims or has taken it to warehouses and distributed muddy rice and the like. The earlier ban was revoked and they started allowing a small number of international aid workers to deliver the aid themselves.

 

. Pakistan’s fragile coalition government agreed to reinstate the Chief Justice and 60 other judges fired by Pervez Musharraf—a move almost certain to spell trouble for the US-backed president, govt. officials said.

     . Pakistan’s army lodged a formal protest with what it termed “allied forces” in neighboring Afghanistan over a suspected US missile strike that killed 14 people in Pakistan’s border village of Damadola.

     . Pakistan’s ambassador to Afghanistan (Tariq Azizuddin) returned home 3 months after he was kidnapped on the main highway through Pakistan’s wild NW border region. A senior official said he was freed through law enforcement action & the government made no concessions nor paid any ransom money.

     . A suicide bomber blew himself up at the gate of an army base in Pakistan’s troubled NW killing at lest 11 people, including 4 soldiers. It was the deadliest attack in more than 2 months.

 

. Eight bank employees and a security guard in the Philippines were lined up and fatally shot in the head in the worst ban robbery in the country’s history. Another employee was in critical condition at a hospital.

 

. The chief of Bangladesh’s biggest Islamist political party (Jamaat-e-Islami) was detained over allegations of kickbacks in a port deal, police said.

 

. The world’s last Hindu kingdom became the newest secular republic last week as Nepal’s lawmakers, led by former Communist insurgents, abolished the monarchy that had reigned over this land for 239 years.

 

. Public Health Minister Chaiya Sasomsaub of Thailand will lead a new Team to Burma comprised of physicians, pediatricians, psychologists, dentists and engineers to provide assistance to victims of Cyclone Nargis and lay down future strategies to cope with the aftermath of the disaster.

 

 

 

 

V. Miscellaneous   

(this section available to paid members only)  TO SUBSCRIBE, CLICK HERE                                      

Copyright 2006 By:
Rawlein G. Soberano, Ph.D.
President
Asian American Business Roundtable
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