http://www.feer.com/_0010_05/p22region.html North Korea: Open for Business The man developing northern ventures for South Korea's heavily indebted Hyundai Group finds a land crying out for foreign investment KIM YOON KYU, a 31-year veteran of Hyundai Group, South Korea's leading chaebol, or large business group, oversees its investments in North Korea (investments inspired by Hyundai founder Chung Ju Yung, 85, who is now in hospital). Kim, 56, is president of Hyundai Asan, which handles the group's so far loss-making deals to promote economic relations with the North, and Hyundai Engineering & Construction, the South's biggest contractor. Kim has made more than 30 trips to the North and met its leader Kim Jong Il three times. He talked to Review Senior Writer Shim Jae Hoon in Seoul about his plans, especially for a $5 billion industrial zone and greater tourism. Excerpts: WHY IS HYUNDAI SO KEEN ON INVESTING IN NORTH KOREA WHEN CRITICS SAY YOU HAVE A MORE PRESSING TASK IN RESTRUCTURING YOUR GROUP? We're running out of contracts in the South--this year the construction market is down 37% over last year. We need to get to the North, which requires a huge number of new infrastructure projects to develop. Also there's a sentimental factor: opening business with the North has been a lifelong dream of our founding chairman, Chung Ju Yung, who was born in North Korea. He thinks he can build the foundation for reunification through business. We're going to build hotels, golf courses, ski runs, spas, et cetera. We've invested $400 million so far, of which $290 million has gone to the North as licence payments and the rest for building port and other facilities. The North has agreed to accept tourists from Japan by the end of this year. As the North sees how the Kumgang project is successfully undertaken, they're offering to open the city of Kaesong, just next to the Demilitarized Zone, to foreign investment.

http://express.isyndicate.com/photos/reut_old/reuters.news.20000927116305.html belgrade isynd A Central square is crowded by opposition supporters during a rally in Belgrade's center September 27, 2000. At least 200,000 people packed Republic Square to celebrate what they are convinced was the outright victory of opposition candidate Vojislav Kostunica at presidential polls September 24.

http://www.scmp.com/News/China/Article/FullText_asp_ArticleID-20000928033208870.asp More Falun Gong members said to have died ASSOCIATED PRESS Two more members of the banned Falun Gong sect have died in custody, one after being denied medical attention in a labour camp, a rights group said yesterday. A third Falun Gong member hanged himself following release from a mental hospital, where he had been kept for almost two months after he refused to leave the group, police said.

http://www.scmp.com/News/Front/Article/FullText_asp_ArticleID-20000928022351431.asp Tung says differences with advisers 'healthy' POLITICAL DESK Chief Executive Tung Chee-hwa said last night that while he differed with his senior advisers at times, such disagreements were welcome. The civil service supported his policies once he and the Executive Council came to a decision, he said. The remarks came after Chief Secretary Anson Chan Fang On-sang and the civil service were told publicly by Vice-Premier Qian Qichen to "better support" Mr Tung, sparking claims that Beijing was unhappy with Mrs Chan's performance and was interfering with SAR affairs. Speaking after a banquet for civil servants ahead of National Day, Mr Tung said: "In a government, just like in your home, during the decision-making process there are bound to be different voices. That is a good sign and we welcome it. But after the Chief Executive makes the decision, I can guarantee all civil servants are fully in support of it." Mr Tung said the central Government had been supportive of the SAR and there was no question of Beijing wanting to intervene in SAR affairs. "Mr Qian just wanted to encourage the civil servants, because they are facing a lot of pressure and challenges," he added, in an apparent reference to his plans to reform the bureaucracy which are opposed by many civil servants.

http://www.iht.com/IHT/TODAY/THU/IN/kids.2.html Hollywood Concedes A 'Lapse' Test-Marketing on Youths Set to Undergo a Review The Associated Press WASHINGTON - Hollywood executives admitted Wednesday that violent films were test-marketed before audiences that included children as young as 9 years old. Questioned by angry senators, a Sony executive called the practice a lapse in judgment. Senator Kay Bailey Hutchinson, a Texas Republican, said that if the industry did not take steps to keep violent films away from young children ''you're going to see some kind of legislation.'' Testifying before the Senate Commerce Committee, Mel Harris, president of Sony, parent company of Columbia Pictures, called the test-marketing of a violent PG-13 film before the younger audience ''a judgment lapse.'' The film was ''The Fifth Element,'' an action science fiction story starring Bruce Willis. The executives were asked pointedly whether they would limit their marketing of PG-13 movies to viewers younger than that. ''We are going to review the appropriateness of all advertising,'' said Rob Friedman, vice chairman of Paramount's Motion Picture Group. Other industry executives said much of the test marketing was done by an independent company, National Research Group, not by the companies that produce the films.

http://www.telegraph.co.uk:80/et?ac=000148897331502&rtmo=kNZb3N1p&atmo=99999999&pg=/et/00/9/28/wisr28.html Netanyahu is cleared of corruption By Ohad Gozani in Tel Aviv ISRAEL'S former prime minister Benjamin Netanyahu escaped prosecution for alleged corruption last night, clearing the way for a political comeback. Citing "lack of evidence that would stand up in court", Eliyakim Rubinstein, the Attorney-General, announced that he was closing the case against the 50-year-old politician and his wife, Sara. The couple had been investigated for months on suspicion of accepting free services from a contractor while in office and keeping hundreds of official gifts after Mr Netanyahu was ousted by Ehud Barak in last year's general election. Both denied the charges. Mr Rubinstein's decision appeared to clear the way for Mr Netanyahu to re-enter politics and possibly challenge his successor. Mr Barak's political fortunes have dipped after months of faltering peacemaking with the Palestinians and he has seen his parliamentary majority disappear. Recent polls indicated that he and Mr Netanyahu would be in a dead heat if elections were held soon.

tout-6 Clinton timing release of his own comprehensive Mideast peace plan

RAMALLAH — President Bill Clinton is cradling a second draft of a U.S. peace document, awaiting the right moment to submit new proposals meant to bridge Israeli and Palestinian positions for a treaty.

Clinton's aides are sounding out senior Israeli and Palestinian negotiators in Washington over the next three days as the president considers when to launch what could be his last effort to complete a peace treaty. The bridging proposals will mark the first time the administration has drafted a comprehensive draft of Israeli-Palestinian peace.

Israeli and Palestinian sources said the U.S. draft comprises every issue discussed at the Camp David summit in July. This includes the future of Jerusalem, Palestinian refugees, borders, security arrangements and water rights. If the draft is accepted by both sides, Israeli and Palestinian negotiators would form panels that would discuss every one of these subjects.

Portions of the U.S. document have already been discussed with Egypt and Jordan, both of which have been promoting the peace efforts. Egyptian officials said Israel has softened its position, particularly on the Jerusalem issue.

"I would say that we are at the start of a very intensive effort -- to an extent a final one in this round -- in an attempt to reach a breakthrough in the negotiations with the Palestinians," Israeli Prime Minister Ehud Barak said.

Palestinian Authority International Cooperation Minister Nabil Shaath compares the U.S. document to a large package. Shaath said Israel and Palestinians would discuss each issue separately and if agreement is achieved, place that aside and proceed to unresolved matters.

ea http://www.scmp.com/News/Asia/Article/FullText_asp_ArticleID-20000927032533909.asp Food, not philosophy, drives North's moves ROGER DEAN DU MARS in Seoul Locked headlong in the pursuit of bolstering ties with the South and the foreign community, North Korea's objective rests squarely on acquiring food and funds, analysts said yesterday. Pyongyang's struggle to provide for its people has been documented, but its recent report of suffering severe food loss this year underscores the motivation to practise normal diplomacy. The Stalinist state released a report on Monday that claimed drought and typhoons had destroyed 1.4 million tonnes of grain this year. At economic talks between the two sides in Seoul, South Korean Defence Minister Cho Sung-tae promised more food aid and said an announcement would be made within three weeks. "We knew the North had food problems, but the scale of shortages is surprising," a Foreign Affairs Ministry analyst said. "North Korea has been friendly because there is no other option." As President Kim Dae-jung and Washington have advanced policies of engagement with the North, reunification has increasingly been talked about in South Korea. Inter-Korean diplomatic successes since the June summit have further heightened expectations of permanent peace. Analysts say a breakthrough in the Cold War tensions is welcome, but a euphoric mood has been clouded by grim reality. "Kim Jong-il is not motivated by ideology or nationalism to get unification," Cho Dong-ho, of the Korean Development Institute, said.

http://www.scmp.com/News/China/Article/FullText_asp_ArticleID-20000927032536283.asp Foreign missionaries face even tougher restrictions VIVIEN PIK-KWAN CHAN China has issued fresh measures to restrict foreigners from spreading religion. According to new rules published by the State Administration of Religious Affairs, foreigners are not allowed to appoint religious personnel or enlist religious followers among Chinese citizens. If they preach, they must ensure they stick to "lawfully registered sites".

ss/three http://www.washtimes.com/national/default-2000927235725.htm Shelton warns military underprepared to fight two wars By Bill Gertz THE WASHINGTON TIMES The decline in combat readiness in U.S. military forces has increased the danger that fighting two major wars could result in greater casualties and lost territory, according to the chairman of the Joint Chiefs of Staff. Gen. Henry H. Shelton stated in testimony prepared for delivery before the Senate Armed Services Committee today that front-line forces remain capable of carrying out the national strategy of fighting two major regional wars at nearly the same time. "But as I have consistently testified, the risk associated with the most demanding scenario has increased over the past several years," Gen. Shelton stated. Specifically, the risks of fighting one major war are viewed as "moderate" while the dangers associated with an additional conflict are viewed as "high," the general said. The four-star general said the military needs more money to fix the problems and the exact amount will be set after the four-year defense posture review is completed next year. U.S. forces still would prevail in the two-war scenario but "it would take us longer to respond to hostilities" and "this can mean territory lost and the potential for a longer fight with increased casualties," he said.

INDYK'S SUSPENSION RAISES SPECTRE OF ANT-SEMITISM JERUSALEM [MENL] -- Israeli officials say it isn't so, but an American Jewish leader has raised the spectre that U.S. ambassador Martin Indyk was singled out for suspension on security allegations because of his Jewish background. The assertion by Anti-Defamation League national director Abraham Foxman was the first to suggest that Indyk was singled out because of his religion. But privately several Israeli and American Jewish community activists said Indyk could have been the latest victim of an FBI security crackdown that has largely affected Jews in leading government positions connected to the Middle East. "First of all he is a political appointee," Foxman said. "Secondly, he doesn't come from the community of State Department officials. He comes from outside. And thirdly, he is a Jew. And until I see other people in the same situation, I have to ask the question." Last week, the State Department suspended Indyk's security clearance amid accusations that he violated regulations by taking home classified information on his personal computer. Supporters of Indyk said he was merely working at home, something that virtually all senior U.S. officials do. But the London-based A-Sharq Al Awsat reported on Monday that Indyk is being accused of leaking details to Israel of meetings between U.S. and Arab leaders. The newspaper said Indyk transferred from the State Department to his personal computer a document on meetings with then-Syrian President Hafez Assad and Egyptian President Hosni Mubarak. Israeli officials said they hoped the 49-year-old Indyk would soon return to work. They said he was the chief liasion between the government of Prime Minister Ehud Barak and the Clinton administration. "I hope it won't make it harder," Israeli acting Foreign Minister Shlomo Ben-Ami said. "Indyk is an outstanding Middle East expert whom I would compare to a data bank -- such is his deep knowledge of the region." But privately, Israeli and American Jewish leaders acknowledged that Jews involved in Middle East policy are being targeted in several U.S. agencies. They include the CIA and Defense Department. and one senior source said at least one Jew has been manhandled during an FBI investigation. The source said in all about 25 Jews are being targeted. "My question -- and I have no answer as yet -- is, 'Why is he [Indyk] the only one?'" Foxman asked. "I am certain that not just five and not just 10 but everyone [in the U.S. government] who takes his work seriously works at home and works at a computer at home." Former Israeli ambassador to Washington, Itamar Rabinovich, appeared to agree. Rabinovich and several leading Israelis believe that Indyk was the victim of the current presidential race. Israeli sources said the accusations against Indyk date to 1995. "He is fighting for his good name and future and feels he is paying a price for an atmosphere created over the security questions," Rabinovich, who spoke to Indyk, said. The State Department said Indyk was not being accused of espionage or compromising intelligence. Officials said Indyk was fully cooperation in the investigation. "This is a question of security procedures that have not been followed," a State Department statement said.

me http://www.scmp.com/News/Asia/Article/FullText_asp_ArticleID-20000925032022440.asp Taleban asks for more cash to stamp out opium AFGHANISTAN by TASGOLA KARLA BRUNER The Taleban is asking for further help to eradicate drug production after a UN project to cut Afghanistan's poppy output - the largest in the world - was cancelled due to lack of funding and donor frustration. Anti-narcotics minister Abdul Hamid Akhanzadah last week criticised the UN for saying it had run out of funds when it had, he said, only used a third of the funding available for the crop-substitution project.

richardson nando U.S. Energy Secretary Bill Richardson, center, chats in the green room with Sen. Chuck Hagel, R-Neb., before the start of CBS's "Face the Nation" Sunday, Sept. 24, 2000, in Washington. Richardson insists that potential winter heating oil shortages, not high prices or politics, are behind the president's decision to draw oil from the nation's emergency reserves. AP Photo/Face the Nation, Karin Cooper

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wenho http://express.isyndicate.com/photos/reut_old/reuters.news.20000920111309.html Government investigators are looking into why former Los Alamos scientist Wen Ho Lee made more than one copy of some portable tapes that he downloaded from classified government computers, The Washington Post reported September 20, citing sources close to the probe. Lee is shown leaving the Federal Courthouse in Albuquerque, September, 13.

death scmp Death sentence: ex-National People's Congress Standing Committee vice-chairman Cheng Kejie, executed for corruption yesterday, listens during his trial. Xinhua photo chen nando Taiwan's President Chen Shui-bian gestures as he proposes to hold talks with China about ending Taiwan's 50-year ban on direct shipping links, saying that trade ties will be the key to easing political tensions, Saturday Sept. 16, in Taipei. Officials said this week Taiwan will open transportation links between the outlying islands of Kinmen and Matsu and the Chinese mainland as soon as December. AP Photo/Jerome Favre

ISRAEL LOBBIES INDIA FOR ARMS SALES TEL AVIV [MENL] -- Israel has launched another effort to complete major weapons deals with India. The effort includes an Israeli proposal to sell the Phalcon airborne early-warning system to New Dehli. Both countries are said to be ready to sign a Phalcon agreement. The issue was raised during a visit by Defense Ministry director-general Amos Yaron to India last week. The visit was deemed secret and meant to evade U.S. monitoring of arms sales to New Dehli. India is one of four countries that the United States insists on notification of any Israeli weapons sales. The others are Pakistan, Russia and China. Defense sources said India and Israel have already agreed to major deals including the sale of the Phalcon and Green Pine ground radar to New Dehli. The sources said so far the United States has not objected. The negotiations with India are taking place as Israeli defense industries are warning that up to 17,800 people will be fired by 2008 unless sales are dramatically increased. The industries have called for a significant increase in procurement by Israel's military. Israeli companies are also completing deals for the upgrade of Indian fighter jets and attack helicopters. The helicopters will be used to monitor developments in the tense Kashmir region along the border with Pakistan. India is also considering Israel for artillery with a range that exceeds 40 kilometers. India used the Swedish Bofors howitzers during the Kargil conflict in 1999. "We are looking for wider options," Lt. Gen. Vinay Shankar, India's artillery chief, said. "A lot of countries have such guns which includes France, Israel, Russia, South Africa and Sweden." Shankar did not say which company would supply such artillery, but said the army wants a gun superior to the 105 mm Bofors, with a range of 35 kilometers.

ISRAEL PREPARES NEW LIST OF U.S. WEAPONS TEL AVIV [MENL] -- Israel has prepared a new list of U.S. strategic weapons as part of any Middle East peace settlement. The list of weapons was discussed during talks to upgrade strategic relations between Jerusalem and Washington. An announcement on a strategic upgrade agreement was delayed last week amid disputes over Israel's arms export policy. Israeli defense sources cite the following systems as being requested as part of any strategic upgrade. They are the KC-135 refueling planes, the Sema airborne intelligence, mounted on a Boeing 737 and the V-22 helicopter. The V-22 is meant for the transport of combat troops. The helicopter flies at the speed of transport planes but can land as a helicopter. Israeli sources said the Defense Ministry in Tel Aviv has asked the United States to allow Israeli subsystems to be installed in reconnaissance planes. They are also requesting for a steady and real-time supply of photographs from U.S. spy satellites. The requested aid would be delayed until after any peace settlement is signed between Israel and the Palestinians. A similar list of U.S. weapons was sought by Israel during negotiations with Syria earlier this year. The sources said the United States plans to upgrade strategic ties with Israel even if it fails to reach agreement with the Palestinians. Such an accord would increase U.S. aid for modernization of Israel's military and bolster cooperation in missile defense. But increasingly defense chiefs said the conditions set by the United States are too stringent. Some of them are urging the government to begin a process of reducing or ending U.S. aid to Israel. The latest to make this call is the chief of the Defense Ministry's research directorate, Maj. Gen. Yitzhak Ben-Yisrael. On Monday, Chief-of-Staff Lt.-Gen. Shaul Mofaz reiterated that a cut in the defense budget would harm Israel's investment in its readiness for war, its strategic power and advanced technological projects. Mofaz told defense industry chiefs that Israel would continue to accept foreign military aid conditioned on Israel's procurement of arms abroad. Less aid would affect Israel's advanced defense industries, Mofaz said. For their part, industry chiefs warned of an impending collapse of the defense industry because of a continuously shrinking budget and U.S. pressure to restrict arms exports. They warn that up to 13,000 people in the industry will have to be let go over the next five years, unless the government significantly increases procurement from local contractors.

back http://www.telegraph.co.uk:80/et?ac=000148897331502&rtmo=a2xbbs2L&atmo=99999999&pg=/et/00/9/13/wisr13.html Barak 'revolution' against restraints of religious law By Alan Philps in Jerusalem THE Israeli Prime Minister, Ehud Barak, set out yesterday on a radical new agenda - known as a "civil revolution" - designed to roll back the influence of religious leaders on daily life. Mr Barak's plan, unveiled to almost universal denunciation as over-ambitious and divisive, aims to give focus to his struggling minority government, now that the prospects of a peace deal with the Palestinians appear to be growing ever dimmer. Instead of peace, Mr Barak is offering Israelis a lifestyle in tune with that of Europe and America, abandoning the 52-year-old status quo under which key aspects of life are governed by religious law. The changes include:

pollard nando Former Navy analyst Jonathan Pollard, imprisoned for spying for Israel, speaks during an interview in federal prison in this 1998 photo. President Clinton is awaiting an administration recommendation on whether Pollard should receive clemency, Clinton's top aide said Sunday, Sept. 10 in Washington. AP Photo/Karl DeBlaker

me U.S. SHELVES PLANS FOR STRATEGIC ACCORD WITH ISRAEL JERUSALEM [MENL] -- The United States has shelved plans to announce a strategic agreement with Israel. The agreement was scheduled to be announced at a meeting between Israeli Prime Minister Ehud Barak and President Bill Clinton in New York on Wednesday. Israeli officials said Jerusalem and Washington remain apart on several issues concerning the proposed strategic agreement. They include a U.S. demand that Israel consult with Washington on arms sales to China, India, Pakistan and Russia. China, India and Russia have been leading defense partners of Israel. Last week, Israeli and U.S. defense officials failed to wrap up the accords, Israeli and U.S. sources said. The sources said Barak and Clinton will discuss the remaining issues. "The talks were fine, but they didn't finish," Israeli ambassador to Washington David Ivry said. There are some things that are left open for the leaders to discuss." Israeli and U.S. sources said Washington was angered by a release in last week's Haaretz daily that outlined five separate agreements that would upgrade strategic relations. These include additional U.S. aid and cooperation against missile threats that could amount to as much $3 billion. The sources said that unless the agreements are completed by Oct. 1, when Congress is scheduled to recess, the two countries will have to shelve the proposed strategic upgrade until a new president enters office in January. Israeli sources said another outstanding issue is an appeal by Jerusalem for the sale of one Phalcon airborne early-warning system to China. The sources said Barak has urged Clinton to approve the sale, saying the current suspension has torpedoed relations with Beijing. A secret report sent by Israeli ambassador to Beijing, Yitzhak Shelef, has urged the government to quickly save the deteriorating relations with China. Shelef warned that China will take action in retaliation of the cancelled Phalcon deal, including a demand for compensation and a downgrading of bilateral relations. Shelef said China is waiting for new Israeli proposals in wake of Barak's July announcement that ended the Phalcon deal. Since then, Shelef said, Beijing has been virtually ignored by the government. In New York, Chinese President Jiang Zemin has refused to meet Barak during the millennium celebrations at the United Nations this week. Israeli officials said this reflects Chinese anger over the cancellation of the Phalcon deal. The Israeli ambassador urged a visit by Defense Ministry director-general Amos Yaron to Beijing.

back NEW PA SCHOOLBOOKS DON'T MENTION ISRAEL RAMALLAH [MENL] -- The Palestinian Authority has published new school textbooks that don't mention Israel. PA sources said the books are the first published by Palestinians as part of their new curriculum for grades one through six. Previous textbook used in PA schools were published in Egypt and Jordan. The sources who saw the books acknowledge that they don't recognize Israel or shows the Jewish state in maps. They said that course material includes calls for the liberation of all of Palestine. The book will be available in stores next month, the sources said. The PA refusal has dismayed donor nations, which are financing the textbooks and the addition of new facilities. Italy is the coordinator of the effort. Western diplomatic sources said the European Union is obligated to review the new textbooks before the school year. The schools are ready to open, the sources said, with 46,000 new pupils entering the system. PA officials acknowledged a new curriculum. PA deputy Education Minister Naim Abul Houmous told PA radio that the curriculum would stress English, computer science and include such subjects as environment and human rights. He did not mention how Israel would be dealt with in the textbooks. "Thank God, we have reached this stage with full success and with the help of Palestinian national institutions such as universities and United Nations relief agency," Abul Houmous said. "About 3,000 people participated in this."

back http://www.scmp.com/News/Asia/Article/FullText_asp_ArticleID-20000830032322496.asp School ghouls' bridge of sighs CHRIS BETROS Tokyo has long attracted its fair share of ghastly figures, but perhaps few can match the 100 or so mostly girls who have gathered weekly during the summer in the capital's trendy Harajuku district. Swathed in bandages and with fake blood running down their faces, the girls are linked by a common bond of morbid fascination with horror. But rather than doing anything special, the mainly junior and high school girls in the ghoulish garb seem to be happy just to stand on the bridge beside Yoyogi Park and chatter among themselves. Most of the girls who attend the ghostly gathering roll up to Harajuku dressed normally, then head off to change and put on their monstrous make-up in the park's public toilets. One 15-year-old, Mika, said her parents would have a fit if they saw her dressed like an accident victim. She said she tells them she is just visiting friends.

back http://www.scmp.com/News/China/Article/FullText_asp_ArticleID-20000830043115105.asp Chiang's grandson completes mission JASON BLATT in Taipei The grandson of former Kuomintang strongman Chiang Kai-shek yesterday completed an emotional tour of the mainland after paying his respects at the grave of his mother in Guilin, Guangxi province. John Chang Hsiao-yen, 58, the son of former president Chiang Ching-kuo and his lover, Chang Ya-juo, travelled to his mother's grave to inform her spirit that he had achieved her lifelong wish to have him formally recognised as a member of the legendary family. Mr Chang broke into tears when a passer-by called him "Chiang Hsiao-yen", using his father's surname instead of his mother's. "My impressions of my mother are rather unclear," Mr Chang said after bowing in front of her final resting place.

back http://www.iht.com/IHT/TODAY/WED/IN/naidu.2.html An Indian State Logs On to the Net Will the East Asian Economic Model Work in a Raucous Democracy? By Thomas Fuller International Herald Tribune HYDERABAD, India - The streets of this sprawling southern city, capital of the state of Andhra Pradesh, are filled with symbols of the dot-com era: roadside billboards touting World Wide Web portals, online news services and e-commerce companies. But in a sign that Hyderabad is anchored to its traditional past, many of the billboards are painted by men who stand on scaffolding made of tree branches lashed together with twine.

me ASSAD PLANS ON RAISING SALARIES NICOSIA [MENL] -- Syrian President Bashar Assad wants to move quickly on the next steps of his economic reform program -- a stock exchange and a large pay raise. Assad, Syrian sources said, plans to raise salaries of government employees by 25 percent. The raise is expected to begin on Sept. 1. At the same time, Assad wants parliament to quickly draft a bill that would establish a stock exchange in Damascus and attract domestic and foreign investments. The Assad regime already has approved the opening of foreign banks and free trade zones with foreign countries in a move meant to open one of the most tightly-controlled economies of the world. "This [stock exchange] would be a public economic institution that would enjoy the backing of the government and operate under its supervision," Economic Minister Mohammed Imadi said. "It will also regularize and facilitate stock dealings and allow stock-holders to be constantly informed about companies' plans and activities." Imadi said a stock exchange would "mobilize savings, facilitate investment operations and attract Arab and foreign capital." Parliament speaker Abdel Kader Qaddoura has asked two legislative committees to draft a study that would establish the exchange and private commercial banks. Imadi said both the exchange and the private banks would operate. Imadi said Syria intends to allow "under specific conditions." On Tuesday, Assad launched another tentative step to reconcile with his Islamic opposition. The regime released Sheik Hashem Minqara, a Lebanese Islamist leader who spent 15 years in a jail outside Damascus. The sheik, head of the Islamic Unification Movement for Tripoli, was taken to Lebanon's Bekaa valley, where Syrian intelligence headquarters is located. Islamic sources said other members of the group are expected to be released over the next few weeks. Human rights group said Syria continues to detain more than 200 Lebanese nationals.

me ISRAELI CHIEF OF STAFF WARNS OF MILITARY CUTS TEL AVIV [MENL] -- Israel's military chief of staff has warned of decreasing security unless the government allocates at least another $240 million to the defense budget. Chief of Staff Lt. Gen. Shaul Mofaz said Israel continues to face threats from its northern border with Lebanon as well as with the Palestinians. He said this requires additional funding to maintain a high state of alert and sufficient forces. Mofaz has warned that he will be forced to dismantle combat units unless the government restores a 1 billion shekel cut implemented for the current fiscal year. The warning comes as Prime Minister Ehud Barak, who is also defense minister, will inform Mofaz this week the proposed defense budget for fiscal 2001. "We need 1 billion shekels for the working year of 2001," Mofaz said, "at least 1 billion shekels. If not we will have to cut the order of battle in the Israel Defense Forces. All this together will mean less security." In addition, Mofaz wants 500 million shekels to cover the costs of reducing military service, scheduled in August 2001. The chief of staff said Barak has pledged to increase the budget by 650 million shekels. In fiscal 2000, the defense budget was 36.4 billion shekels [[8.87 billion]. Officials are drafting a 240 billion shekel [$58.5 billion] state budget. Mofaz wants the government to increase the defense budget by a billion shekels a year for each othe next five years to rescue the military's modernization plan. The chief of staff regards the battle of the budget as crucial as Israel faces increasing threats, military sources said. In assessments prepared by the intelligence corps and planning division, the General Staff was alerted to Iran's buildup of intermediate-range Shihab missiles and nonconventional weapons. In addition, the assessments do not envision a relaxation of tension along the northern border; rather a lull that could end after Lebanese parliamentary elections in September. The General Staff held two days of meeting this week to discuss its budget needs. Military sources said that without additional funds the military would be forced to dismantle the elite Givati brigade, reduce training, ground jets, suspend research and development and suspend its reorganization. Military sources said the General Staff has even considered reducing or cancelling the Merkava Mk-4 tank project in face of budget cuts. The military planned to manufacture 70 such tanks a year. The General Staff was presented with proposals to purchase tanks in the United States. Israel has not bought tanks from the United States since 1985. Last year, Mofaz launched a multi-year program called IDF 2000 based on a reduction of manpower and the improvement of the Air Force, intelligence corps and military research and development. Military sources said that about $900 million will be directed into these areas.

lazio nando Senate candidate Rep. Rick Lazio, R-N.Y., comes down the slide at the Erie County Fair during Lazio's "Mainstream Express" bus tour, in Hamburg, N.Y., Sunday Aug. 20. AP Photo/David Duprey

nader nando Green Party presidential candidate Ralph Nader talks with reporters outside of the ABC news studios in Washington, Sunday Aug. 20, after his appearance on 'This Week.' AP Photo/Susan Walsh

lieberman nando Sen. Joseph Lieberman takes the helm of the Mark Twain riverboat as it heads down the Mississippi River just outside Canton, Ill. on Monday Aug. 21. Vice President Al Gore and Lieberman's river boat tour winds up Monday after spending four days on the Mississippi River. Watching at back right is Lieberman's son Matt, and at left is Capt. Casey Herschler.

back ASSAD AGAIN LOOKS FOR A BRIDE NICOSIA [MENL] -- He's got an army, a presidential office and an adoring public. Now President Bashar Assad is looking for a bride. The 35-year-old Assad is reportedly engaged to a Syrian woman who has spent the last few years in Britain. Asma Ahras is Assad's second fiancee and the bride's family announced the engagement last month. It appears that Assad knew of Ms. Ahras during his studies in Britain. Assad studied ophthalmology in Britain. The Israeli Haaretz daily reported on Tuesday that Bashar was engaged to another Syrian woman last year. Israeli sources identified the first fiancee as from the Al Azhari family in Syria. Assad was to have been wedded in February but the engagement was broken off for unspecified reasons. Arab diplomatic sources said Assad had been pressed to enter marriage for several years, including by his late father, Hafez Assad. Assad's bachelorhood had been the target of ridicule by Syrian critics. Morocco's King Mohammed is the only other Arab leader who is not married.

http://www.telegraph.co.uk:80/et?ac=000148897331502&rtmo=r2htr2QX&atmo=99999999&pg=/et/00/7/16/wbulg16.html Bulgaria sells off Black Sea resorts By Michael Leidig and Julia Damianova in Sofia BULGARIA is selling luxurious coastal resorts that were once the playgrounds of the communist elite. The packages include hotels, holiday villages, restaurants, bars, nightclubs and swimming pools.

BACK http://www.scmp.com/News/Asia/Article/FullText_asp_ArticleID-20000718040552708.asp Film censors lost plot, say Philippines' Catholics FRANK LONGID in Manila The Catholic Church, fed up with state efforts to enforce moral standards in films, has decided to set up its own movie review board.

http://www.scmp.com/News/Front/Article/FullText_asp_ArticleID-20000805023516389.asp Blow for tycoon in libel battle Tycoon Li Ka-shing's flagship company Cheung Kong (Holdings) yesterday lost the first round of a legal battle against a politician who alleged it received preferential treatment from the Government. Mr Justice William Waung Sik-ying rejected Cheung Kong's attempt to strike out part of Democrat Albert Chan Wai-yip's defence against a defamation suit brought by the company. The judge ordered Cheung Kong to bear 90 per cent of Mr Chan's costs in fighting its application.

From: Frederick Peterson 14000 Cabells Mill, Centreville, VA 20120 703 266 7899 VP Al Gore, perpetually in search of the self that will sell, has reinvented that self yet again. Yesterday, it was a borrowed brown suit; today, it is borrowed respectability. Neither wash well. Yet Al Gore may have more in common with Joe Lieberman than even he suspects. Lieberman, full of angst, articulated all the right reasons for repudiating the lies, manipulations, deceptions and disgrace of the Slick One. Then, after much maudlin, self indulgent (and celebrated) moralizing, he voted exactly against his own prime time soaring rhetoric and for his own political interest. This Gore team has done it time and time again: Lieberman (a protégé of Bill Clinton at Yale) condemns abortion in fine orthodox words -- and voted FOR the morally repulsive partial birth abortion interests; The Gores condemn violent and explicit rock lyrics, and troll grunge bands and playboy bunny dens for donations. By words alone, thou shalt not be saved -- The moral emptiness and incipient hypocrisy of Al Gore, the Hollow Man, will come back as a raven to roost on his shoulder in November, whispering, "Nevermore ..." His latest reinvention as 'Halo Man' will not save him. The people know.

back http://www.scmp.com/News/China/Article/FullText_asp_ArticleID-20000803025531400.asp President profiting from tough sentence WILLY WO-LAP LAM President Jiang Zemin is capitalising on the generally favourable reaction to the death sentence passed on former National People's Congress vice-chairman Cheng Kejie to launch a new ideological campaign among party cadres. Circulars have been sent to party units in Beijing and the provinces to study "major documents" such as Mr Jiang's speeches on the danger that corruption poses to the party's prestige and viability.

back http://www.telegraph.co.uk:80/et?ac=000148897331502&rtmo=LlbKdLbd&atmo=99999999&pg=/et/00/8/1/wcar01.html Therapy is new religion, says Carey THE Archbishop of Canterbury said yesterday that a new religion, therapy, was replacing Christianity in Western countries. Dr George Carey told the Amsterdam 2000 conference of preachers and evangelists that "Christ the saviour" was becoming "Christ the counsellor" in watered-down sermons. He told 10,000 church leaders from 185 countries at the conference, organised by the

katsav afp Moshe Katsav with the hand on the bible takes the oath of allegiance during a swearing ceremony at the Knesset in Jerusalem 01 August ; the new President, a seasoned politician but unknown in the international arena, delivered a major upset to besieged Prime Minister Ehud Barak with his six-vote victory over Shimon Peres during a secret parliament vote 31 July

ISRAEL AWAITS U.S. DECISION ON INDIA DEAL TEL AVIV [MENL -- Israel's plans to sell India advanced radar is being delayed by lack of U.S. approval. Official said Israel's Defense Ministry wants the green light from Washington for a sale of the Phalcon airborne early-warning alert system and the Green Pine ground radar to India in a deal that could top $1 billion. Israeli Defense Ministry director-general Amos Yaron held talks last week in Washington and raised the issue with State Department and Pentagon officials. The Israeli request is to sell at least two Phalcons and the Green Pine to New Dehli -- systems that Israel says does not contain U.S. technology. In early July, Israel -- amid intense U.S. objection -- said it was suspending the sale of the Phalcon to China. The Green Pine radar is part of the Arrow anti-missile defense system and U.S. defense officials said the radar contains Phalcon technology. Both systems are manufactured by Elta Electronic Industries, a subsidiary of the government-owned Israel Aircraft Industries Ltd. Officials said Yaron argued that Israel would rather receive Washington's approval to sell the Phalcon to India rather than seek compensation from the United States for the suspension of the deal with Beijing. China was interested in obtaining between four and six Phalcon systems from Israel, the officials said. Each Phalcon system is valued at $250 million. An Israeli defense official said India and Israel had negotiated for months the sale of the Phalcons and the Green Pine. They said the talks have been suspended until the Clinton administration issues its approval. "There are no negotiations, no contract [with India]," the official said. "It's all up to Washington and nobody here thinks it's going to be an easy decision." Indian defense sources have confirmed that New Dehli has been negotiating with Israel. "We have been long interested in these advanced systems, particularly the Phalcon," the diplomat said. "But the negotiations could not proceed to the next stage as long as Israel was going to sell the Phalcon to China." Israeli officials said Washington was informed several months ago of the negotiations with India. At the time, the administration did not express objection. But both Israeli and U.S. defense sources said that in the wake of the Israeli suspension of the Phalcon deal, Washington will not approve the sale of advanced defense systems to India, which is on a list of 27 so-called countries of concern. "The Barak government's decision [on Phalcon] signals a growing willingness to forego military and defense relations rather than risk American disapproval," said Ilan Berman, a researcher who published a recent study of Israeli-U.S. strategic ties for the Washington-based Jewish Instutute for National Security Affairs. "Given this dependence, Congress may get the message that it can intensify efforts to curtail future Israeli foreign military sales."

bushes nando Presumed Republican presidential nominee Texas Gov. George W. Bush, left, holds up a 22-inch striped bass he caught while fishing with his father, former President George Bush, off Walker's Point in Kennebunkport, Maine, on Monday June 12. The governor released the fish after having his picture taken. AP Photo/Pat Wellenbach

bag nando U.S. Senate candidate first lady Hillary Rodham Clinton stands next to a carpetbag she brought on stage as she began the Democratic response at the 100th annual Legislative Correspondents Association Dinner in Albany, N.Y., on Saturday June 10. AP Photo/Jim McKnight, pool

ea http://www.scmp.com/News/Asia/Article/FullText_asp_ArticleID-20000501031246186.asp Forlorn refugees of civil was give up their dream BANGLADESH by ARSHAD MAHMUD in Dhaka The 238,000 Pakistanis stranded in squalid refugee camps across Bangladesh appear to be abandoning the once-cherished hope of going to their promised land.

BUREAUCRACY PLAGUES PA, IMF SAYS RAMALLAH [MENL] -- The Palestinian Authority has been warned against its expanding bureaucracy in what appears to be a drive by officials to reduce unemployment in the West Bank and Gaza Strip. A report by the International Monetary Fund and the PA said that in a six-month period more than 10,000 people were hired by the PA. They said this far exceeded the PA budget. By the end of the year, the report said, the PA will have employed 112,500 peple and its payroll will have increased by nearly $60 million. The PA hiring appears to be part of a drive to reduce unemployment. In the first quarter of this year, unemployment in PA areas was reported at 10.9 percent. During the same period last year, the rate was 13.9 percent. The report accused the Finance Ministry of being unrestrained by the budget. "The rapid expansion in PA staff not only makes less resources available for other important recurrent and capital expenditure," the report said, "it also makes it exceedingly difficult to ensure adequate remuneration of PA employees." The IMF has increased supervision of the PA as part of a demand by donor nations for continued aid to the Palestinians. The PA is requesting $40 billion to help establish a state and compensate Palestinian refugees.

index tease Finding Virtue in Hollywood's GLADIATOR by Charles Colson Success in Hollywood, these days, usually involves films that promote situation ethics and moral uncertainty. But this summer's first blockbuster extols virtue and devotion to a higher cause. Appropriately, perhaps, it is set, not in the American suburbs, but in 2nd century Rome. Of course, I'm talking about the box-office hit, GLADIATOR. The time in 180 A.D. and the legions of Emperor Marcus Aurelius are arrayed against the German barbarians -- the last remaining obstacle to peace throughout the Empire. With the cry of "Strength and Honor," General Maximus leads the Roman army to victory. A man of war who longs for peace, Maximus prepares to return to his life as a farmer, with his wife and his son. But the Emperor, in failing health, has other plans. Maximus is like the son he always wanted -- not because of his military prowess, but because of his great personal virtue. By contrast, the emperor's true son, Commodus, is cowardly, cruel, and ambitious. Aurelius has misgivings about passing the crown to Commodus. In fact, he no longer believes Rome should be ruled by an emperor. Instead, he wants Maximus to return the elected Senate to power. But before Marcus Aurelius is able to announce his plans publicly, he is murdered by Commodus, who proclaims himself emperor. Maximus refuses to pledge loyalty to this usurper, and he narrowly escapes being killed, himself. Then, finding his own family slaughtered, Maximus is sold into slavery as a gladiator. Eventually, his success in the arena leads to a final showdown -- of course, with Commodus. Like most Hollywood historical fiction, GLADIATOR does require some suspension of disbelief. But it has merits. Although most discussion of the film emphasizes the spectacle and bold imagery, GLADIATOR unmistakably celebrates virtue over vice, selflessness over selfishness, and loyalty over ambition. Yes, it is also very violent -- be warned -- but the film provides its own critique of the violence it portrays. Commodus reinstates the gladiatorial games abolished by his father. Instead of ruling for the good of Rome, he uses the spectacle of the games, and he appeals to the basest impulses of the people to distract them from his own tyranny. Maximus, on the other hand, yearns for peace, but fights in the arena because he hopes to win his freedom and serve the ideal of Marcus Aurelius. He believes that how he lives has significance, not only for this life, but for the life hereafter. And BECAUSE he lives with a view to eternity, he will not betray his principles. This noble warrior does not exhibit strength and honor only on the battlefield. When he refuses to kill a defeated opponent, his mercy makes a mockery of the cruelty of the emperor. Even as a slave, Maximus displays the virtue that makes him, not just a great soldier, but a good man. Now, you may find this film too violent for your tastes or for family viewing. But I'm thrilled that crowds are flocking to it. It's not often that Americans are given such a clear contrast between moral goodness and evil, and given such a high view of virtue. In the process, they're foretelling, in a sense, "The Greatest Story Ever Told," because they are reminding all of us that the way we live DOES have eternal consequences. Copyright (c) 2000 Prison Fellowship Ministries

back PA OPENS DOOR TO MORTGAGES GAZA [MENL] -- The Palestinian Authority is opening the door to home mortgages. A lending firm, PMHC, based in Gaza, will become the first to offer mortgages through participating banks. The company will provide banks with long-term loans to act as mortgage brokers. "This will open the door to home ownership for many Palestinians who could not otherwise afford to buy a home," Osama Ammouri, general manager of the company, said. Ammouri said PMHC also encourage banks to offer mortgages by providing them with mortgage insurance meant to substantially reduce risks. The mortgage program is supported by the PA, World Bank and several governments, including Canada and Germany. Executives said the mortgages offered by PMHC will virtually eliminate the need for for guarantors and additional collateral. The mortgages are set for up to 20 years and initial interest rates will be 7.5 percent for mortgages on properties which cost $35,000 or less and 8.5 percent for properties that cost more. Palestinians have found it more difficult to find housing since the advent of the PA. The housing problem is regarded as acute in Gaza and Ramallah, where housing prices have soared because of the entry of a new moneyed-class of PLO officials from abroad. So far, four banks have signed agreements to participate with PMHC. They are the Arab Bank, Egyptian Arab Land Bank, Al-Quds Bank and Jordan National Bank.

http://www.telegraph.co.uk:80/et?ac=000148897331502&rtmo=V6q8DSMK&atmo=99999999&pg=/et/00/7/14/wtig14.html Man who paid £1.4m for a round with Tiger By Auslan Cramb THE most expensive round of golf ever played will cost Joseph Lewis, an international currency dealer and self-made Cockney billionaire, £77,777 a hole.Man who paid £1.4m for a round with Tiger By Auslan Cramb

k-8 scmp Spreading wings: the mainland's new K-8 fighter trainer had its first test flight recently in Nanchang, Jiangxi province. The PLA-built aircraft will be exported to Egypt under a US$347 million (HK$2.68 billion) contract and is designed for training in areas such as take-offs and landings. Xinhua photo

ISRAEL REORGANIZES INTELLIGENCE FOR LEBANON JERUSALEM [MENL] -- Israel has reorganized its intelligence efforts to ensure that it continues to obtain information from Lebanon in wake of the military withdrawal from that country. The effort comes as intelligence sources acknowledge that the ban on Israeli reconnnaissance flights in Lebanon has reduced information on Syrian military deployment in both Lebanon and Syria. Military sources said the intelligence community was surprised by the decision by Prime Minister Ehud Barak to stop air and naval reconnaissance missions in Lebanese territory. They said the decision affects Israeli intelligence gathering on the deployment of Syrian missiles and nonconventional weapons. But the sources said military intelligence has been reorganizing over the past year to deal with an Israeli withdrawal from Lebanon. They said intelligence efforts will focus on electronic monitoring from the border area as well as satellite reconnaissance. Israel maintains the Ofeq spy satellite, launched in 1995. Another satellite is planned for launch over the next year. The intelligence reorganization began with the launching of a field intelligence corps that will be separate from the issuing of political and strategic assessments to the general staff and the government. The reorganization will expand the authority of the chief intelligence officer and make him responsible for budget and manpower. Other areas of intelligence have also been reorganized, military sources said, to focus on Arab and Iranian missile and nonconventional weapons programs.

villagers scmp Glued to the telly: villagers from Enarotai Island in Irian Jaya arrive in their local town hoping to catch up on news of independence moves from Indonesia. Associated Press photo