The New Nation - Internet Edition

Afghanistan conflict rapidly worsening, says US report

AFP, Washington

The situation in Afghanistan is liable to get worse in 2009, the chairman of the US Joint Chiefs of Staff has warned, amid reports of a bleak draft US intelligence assessment that details a slide into corruption, drugs and insurgent violence.

"The trends across the board are not going in the right direction," Admiral Michael Mullen told reporters at a breakfast in Washington.

"It will be tougher next year unless we get at all these challenges." The New York Times said the draft National Intelligence Estimate (NIE) casts doubts on the ability of Afghan President Hamid Karzai to stem the resurgence of the Taliban militia. A spokesman for the Director of National Intelligence would not acknowledge the existence of such an NIE, while a US intelligence official told AFP the assessment process was still in its early stages and "its conclusions are premature."

US Secretary of State Condoleezza Rice said she expected to be briefed soon on the classified assessment, which represents the consensus view of 16 US intelligence agencies.

"I would just cite that Afghanistan is a difficult place," Rice said. "It has made progress since 2001. We have all talked about new circumstances that have arisen there, and we are doing a review to see what more we can do."

A US military official, speaking on condition of anonymity, told AFP that the downbeat "tone and direction" was not unexpected. "We heard about this for several weeks, and were not surprised by the tone it conveyed -- that the situation in Afghanistan was getting worse, certainly not better, and that a lot more attention was needed to try to remedy what is going on," said the official.

The White House has already launched an urgent strategy review led by Lieutenant General Douglas Lute, a deputy national security adviser and coordinator of the US war effort in Iraq and Afghanistan.

For her part, Rice said the State Department is reviewing its operations, including those involving the Provincial Reconstruction Teams where civilian experts travel with military protection to remote parts of the country. "We are looking also at what we can do to be more supportive of the ministries that president Karzai has put up," she added. General David McKiernan, the top US commander in Afghanistan, has asked for four more combat brigades and support forces -- as many as 20,000 additional US troops -- to beef up the 33,000-strong US force battling an intensifying insurgency. But so far, the administration -- citing constraints imposed by the Iraq conflict -- has promised only one combat brigade by February.

Military commanders have already warned that a political solution is needed in Afghanistan, but that corruption and a flourishing narcotics trade are undermining public support for the central government.

The draft National Intelligence Estimate says a breakdown in central authority in Afghanistan has been accelerated by rampant corruption within the Karzai government and by increasingly sophisticated insurgent attacks from safe havens in Pakistan, the New York Times said.

The Washington Post said the NIE describes a Pakistan-based extremist network with three elements -- Pakistani extremists allied with Kashmiri militants; Afghan Taliban; and traditional tribal groups in western Pakistan that assist the other groups.

"Al-Qaeda, composed largely of Arabs, and increasingly, Uzbeks, Chechens and other Central Asians, is described as sitting atop the structure, providing money and training to the others in exchange for sanctuary," it reported.

In Budapest, NATO nations struggled Thursday to agree new steps to combat opium production in Afghanistan by hunting down drug lords and laboratories in an effort to halt the flow of funds to Taliban insurgents.

"I cannot say that all noses are pointing already in the same direction," NATO Secretary General Jaap de Hoop Scheffer told reporters. "Discussion will be continued tomorrow (Friday) morning."

Global economy faces biggest crisis in 70 years, warns IMF

Internet, London

The global economy is facing its biggest crisis since the Great Depression of the 1930s, the International Monetary Fund (IMF) has warned.

Growth is projected to slow to 3.9% this year, far less than last year's 5%,

then expand just 3% in 2009, its worst performance since 2002. Anything figure of 3% or less has previously been labelled a recession by the IMF. "The world economy is now entering a major downturn in the face of the most dangerous shock in mature financial markets since the 1930s," the report said. Its gloomy prediction was made before today's attempt by global central banks to calm the storm with a coordinated policy of 50 basis point interest rate cuts.

The US Federal Reserve, European Central Bank, Bank of England and counterparts in Canada, Sweden and Switzerland all sliced borrowing costs to help tackle the financial crisis. After four years of strong global growth thanks to emerging and developed economies, the IMF said the US would lead the globe into a major downturn.

America's economy, which grew by 2% last year, is seen slowing to 1.6% this year then only 0.1% in 2009, the grimmest display since the last recession 17 years ago. World stands on the brink of recession, warns IMF.

Montenegro, Macedonia among 50 countries recognise Kosovo

AFP, Podgorica

Montenegro and Macedonia Thursday recognised Kosovo as independent, taking to 50 the number of countries to formally acknowledge its unilateral February secession from Serbia.

Montenegro's announcement sparked outrage in Belgrade, which along with key ally Russia has been vehemently opposing the split. Serbia in a knee-jerk reaction said it was expelling the Montenegrin envoy.

Majority ethnic-Albanian Kosovo -- a UN-run province since 1999 when it was wrested from Serbian control in a NATO air war -- has been recognised by the United States and most European Union members. "The government unanimously decided to recognise the republic of Kosovo," Montenegrin Foreign Minister Milan Rocen said in Podgorica, adding that his country would establish full diplomatic relations with neighbouring Kosovo. Neighbouring Macedonia followed suit within hours.

"The government has decided to recognise Kosovo's sovereignty and integrity," Foreign Minister Antonio Milososki told reporters after a special cabinet session. Serbian Foreign Minister Vuk Jeremic said Belgrade had "decided to inform Podgorica that the presence of its official representative in Belgrade is not welcome any more."

Jeremic had earlier warned that such a decision by Montenegro would be a "stab in the back" for Serbia, as the two were tied up in a loose federation until a 2006 referendum that gave Podgorica independence.

However, Montenegro's foreign minister said the move was not aimed "against Serbia," which considers Kosovo as an integral part of its territory.

"Montenegro has never and will never do anything against Serbia," Rocen said, adding that the independence of Kosovo was a "political reality" in the Balkans.

The two former Yugoslav republics had centuries-long historic ties, share the same language and Orthodox religion, with large communities of their respective nations living in the two states.

Serbia and its powerful ally Russia reject Kosovo's unilateral February 17 independence as a violation of its territorial integrity.

Kosovo, a tiny southern territory whose two million population is 90-percent ethnic Albanian, is seen by most Serbs as the cradle of their history, culture and Orthodox Christian religion.

The Montenegrin and Macedonian thumbs up came a day after the UN General Assembly approved a Serbian resolution calling on the International Court of Justice to rule on whether Kosovo's claim of independence is in sync with international law.

Seeing the vote as its diplomatic "victory," the government in Belgrade decided on Thursday to reinstate all its ambassadors who were withdrawn from countries which recognised Kosovo.

But British Foreign Secretary David Miliband expressed hope in his official blog that the ICJ will declare Kosovo's declaration of independence legal.

"Portuguese Foreign Minister Luis Amado on Tuesday made Portugal the 22nd EU Member State to recognise Kosovo. He did so because of the growing sense that the declaration of independence t represents a sustainable 'fact on the ground,'" Miliband said.

"We are confident that the declaration t is legal in international law, and represents the fairest and most secure route to ending the 15 year tragedy of the western Balkans," he said.

The European Union meanwhile urged Kosovo for patience and called on its leaders to pursue reforms while awaiting the ICJ ruling.

EU Enlargement Commissioner Olli Rehn said Pristina had to show its "determination" for implementing reforms and foster economic and social development in order to improve living standards of the population.

"In the meantime, the best medicine for Kosovo to move forward is indeed to go forward with patience," he said.

US may drop North Korea from terrorism list

Reuters, Washington

The Bush administration looks poised to provisionally remove North Korea from the State Department's terrorism blacklist, perhaps as soon as Friday, The Washington Post reported on Thursday.

The move would be an effort to keep a nuclear disarmament pact with North Korea from falling apart, the newspaper said in an article posted on its website, quoting sources close to the administration.

The newspaper quoted some sources as saying the delisting could happen as soon as Friday. But State Department spokesman Sean McCormack told the Post in an e-mail, " I can assure you that a decision has not been made." North Korea deployed more than 10 missiles on its west coast apparently for an imminent test launch, a South Korean newspaper said on Thursday, and Pyongyang halted U.N. monitoring of its nuclear complex.

The potentially destabilizing actions followed reports the United States had offered to remove North Korea from its terrorism blacklist this month.

U.S. nuclear envoy Christopher Hill visited Pyongyang last week in a bid to convince North Korea to return to a disarmament-for-aid deal and halt plans to restart an aging nuclear plant that makes bomb-grade plutonium.

The United States urged North Korea not to do anything, including launching missiles, that would make matters worse.

"We would urge North Korea to avoid any steps that increase tension on the peninsula," McCormack said earlier on Thursday.

He said actions by Pyongyang in the last month had not been helpful, but added: "What they have done thus far is reversible. They can take a different set of decisions. We urge them to do so."

The halt to U.N. monitoring throughout the Yongbyon nuclear complex was a significant step toward scrapping the pact to dismantle its atomic bomb program, officials and diplomats said at the U.N. International Atomic Energy Agency in Vienna.

Sri Lankan Cabinet minister escapes suicide blast

AP, Colombo

A suspected Tamil Tiger suicide bomber blew himself up near a convoy carrying a senior Sri Lankan Cabinet minister on Thursday, wounding his deputy and at least six others, the military said.

Maithripala Sirisena, the agricultural development minister, was unhurt in the blast in Boralwegamuwa, about six miles from the capital, Colombo, military spokesman Brig. Udaya Nanayakkara said. The injured included his junior minister, Siripala Gamlath, Nanayakkara said, blaming separatist Tamil rebels for the blast. The bomber was killed. There was no immediate comment from the rebels.

The Tamil Tigers, who are banned in the United States and European Union as a terrorist organization, routinely deny involvement in suicide attacks. They are accused of having carried out more than 240 suicide bombings against political, military and economic targets since the early 1980s.

A similar suicide attack blamed on the rebels killed a popular former army general, Janaka Perera, and 26 others outside Colombo on Monday.

The rebels have been fighting since 1983 to create an independent homeland for the country's ethnic minority Tamils, who have faced marginalization by successive governments controlled by ethnic Sinhalese.

More than 70,000 people have been killed in the violence.

NATO to send ships to fight Somali pirates

AP, Mogadishu

NATO joined a growing international force to protect vessels off Somalia's perilous coast Thursday, sending military ships to the treacherous waters where pirates are negotiating the release of an arms-laden tanker.

The pirates softened their ransom demands for the Ukrainian ship hijacked two weeks ago in a brazen high-seas attack. Pirates have seized more than two dozen ships off Somalia's coast this year but the MV Faina has drawn the most international concern because of its dangerous cargo - 33 tanks and other heavy weapons.

"We are open for give-and-take negotiations," pirate spokesman Sugule Ali told The Associated Press via satellite telephone, as a helicopter could be heard buzzing overhead. Six U.S. warships have surrounded the boat, and a Russian frigate is expected within days.

Ali had vowed in earlier interviews never to reduce the ransom fromUS$20 million (euro14.57 million).

Despite his willingness to negotiate, Ali vowed to "cause a lot of problems for the world" if foreign powers use force to end the two-week standoff. If the ransom is paid, he said, the ship will be released.

NATO defense ministers meeting in Hungary agreed that a seven-ship force would be in the region within weeks.

"There will soon be NATO military vessels off the coast of Somalia, hopefully deterring piracy and escorting food shipments," NATO Secretary-General Jaap de Hoop Scheffer said. "That's good news for the people of Somalia and, as it should be, bad news for the pirates."

De Hoop Scheffer said "millions of Somalians risk starvation if" aid is prevented from reaching the country.

NATO said a NATO naval group based in the Mediterranean Sea would sail to the Horn of Africa and stay until at least December.

Momentum has been growing for coordinated international action against the pirate menace after the seizure of the MV Faina. Several European Union countries last week said they would launch an anti-piracy patrol, and Russia announced it would cooperate with the West on fighting the pirates.

The U.N. Security Council this week called on countries to send naval ships and military aircraft, and U.S. warships are being diverted from counterterrorism duties to respond to the sea bandits.

Somalia's government has given foreign powers the freedom to use force against the pirates.

The U.S. Navy said the 20 crew members aboard the MV Faina were living in fear.

"They want it to end peaceful and quickly," said Lt. Nathan Christensen, a spokesman from the U.S. 5th Fleet in Bahrain. He said the Navy was in regular radio contact with the crew.

But pirate spokesman Ali said the crew was holding up well.

"Their chef still prepares their food for them," he said. "They are healthy and have no worries. But of course their only worry is when they will gain their freedom. Their feeling is typically that of hostages - no more, no less."

Ukraine's Foreign Ministry said that authorities in Somalia had been unhelpful.

"Over the past 20 years, criminal groups on the territory of Somalia have taken deep roots, possess big financial resources and are heavily armed and well organized," it said. "The pirates' only aim is to get a ransom and safely move deep onto the territory of Somalia."

Other Somali pirates released 15 Filipino seamen and four other crewmen seized when a Japanese-operated chemical tanker was hijacked nearly two months ago, officials said Thursday. Pirates still hold 67 Filipino sailors on four different ships.

Somalia, a nation of around 8 million people, has not had a functioning government since 1991. A quarter of Somali children die before age 5 and nearly every public institution has collapsed.

Islamic militants with alleged ties to al-Qaida have been battling the government and its Ethiopian allies since the Islamists were driven from the capital in December 2006.

Obama warns against fear and panic as stocks tumble

AFP, Portsmouth

Democratic White House front-runner Barack Obama warned against "fear or panic" and called for quick action on the Wall Street bailout after world stocks went into free-fall.

The Illinois senator sought to show leadership in the eye of a widening financial storm and shrugged off a searing character attack by Republican rival John McCain that showed no sign of halting his momentum.

Just three-and-a-half weeks before election day on November 4, latest polls show Obama has built a solid lead in key battleground states and nationally, and time is running short for McCain to turn around his campaign.

The Democratic nominee made a fresh appeal for calm following another brutal day on Wall Street, which triggered global stock market contagion , inflicting massive losses on Asian and European investments soon after those markets opened.

"Now is not the time for fear or panic, now is the time for resolve, for leadership," Obama Thursday told thousands of people packed into an outdoor rally during a two-day bus tour of critical midwestern swing state Ohio.

"Now is the time to come together with the determination that we can steer ourselves out of this crisis and restore confidence in the American economy," Obama said.

ObamaÂ also urged the prompt implementation of the 700 billion dollar US financial rescue plan signed into law last week, designed to ease the credit crisis.

"As millions of Americans lost more of their investments and hard-earned retirement savings today, it is critical that the Treasury Department move as quickly as possible to implement the rescue plan that passed Congress," Obama said.

Asian and European stock markets were hit by massive losses Friday, following another day of carnage on Wall Street, where the Dow Jones Industrial Average plunged 678.91 points (7.33 percent) -- a seventh straight loss -- and ended below 9,000 for the first time since 2003.

Earlier, at a rally in another midwestern battleground, Wisconsin, McCain and his vice presidential nominee Sarah PalinÂ unleashed a searing character attack on Obama.

The Republican running mates accused Obama of not telling the truth about the extent of his relationship with 1960s radical William Ayers.

Maldives run-off vote set for October 29

AFP, Male

The Maldives' first-ever democratic presidential election will be decided in a run-off on October 29, after the first round failed to deliver a clear winner, officials said.

The run-off date is well outside the 10-day limit laid down by the Indian Ocean archipelago's election law.

The head-to-head vote will pit Asia's longest serving leader, Maumoon Abdul Gayoom, against his most outspoken critic and former political prisoner Mohamed "Anni" Nasheed.

During Wednesday's first round, Gayoom polled 40.63 percent of the vote, while Nasheed secured 25.09 percent. According to the election law, the run-off should be held within 10 days, but Election Commissioner Mohamed Ibrahim insisted the delay was necessary.

"This is the best way for us to organise this," Ibrahim told reporters. "It's for candidates to campaign. It's to correct issues with the voter registry. It's to get people their rights".

The first round of polling appeared flawed due to various irregularities, which Ibrahim said included problems with voter lists, identity cards and indelible ink washing off voters' hands.

Gayoom, who has ruled the tourist resort destination since 1978, told reporters that he was "proud" of the result, even though he had hoped for a clear first round win.

He said he was in a strong position to win the run-off and argued that Wednesday's vote count proved he was still "the most popular public figure" in the country.

But analysts say Gayoom will have a tough time if supporters of the other opposition candidates rally behind Nasheed -- a one-time Amnesty International "prisoner of conscience."

"God willing t there will a Maldivian citizens' government in the Maldives. By principle, we are willing to work with everyone," Nasheed told reporters late Thursday.

The landmark presidential vote was the first time Gayoom has allowed any competition.

Thai protest leaders granted bail, vow new rallies

AFP, Bangkok

Leaders of Thai anti-government protests were granted bail Friday after surrendering to police and immediately vowed new rallies, raising fears of mounting turmoil days after deadly street clashes.

Seven People's Alliance for Democracy (PAD) leaders on Friday turned themselves in on arrest warrants for illegal assembly and inciting unrest and were released after about two hours of questioning.

"The police have granted bail to all protest leaders unconditionally," said Sondhi Limthongkul, one of the bailed leaders, before heading to a protest camp at the prime minister's offices, which the PAD have occupied since late August.

Soon after emerging from a police station near the besieged Government House compound, Somkiat Pongpaibul -- another of the seven leaders -- vowed to launch fresh rallies on October 13 to protest the recent crackdown by authorities.

"On Monday morning, PAD will send our representatives to different locations all over the country. At 10:00 am we will gather in front of the national police headquarters," he told reporters.

Thousands of protesters on Tuesday marched on parliament to try and stop a speech by new Prime Minister Somchai Wongsawat, prompting clashes with police which left two dead and hundreds injured in the worst street violence in Bangkok in 16 years.

Efforts by Somchai -- who has been premier for just over three weeks -- to end the months-long campaign against his party have so far failed, and his government appears to have few allies left.

Even his former chief negotiator with the protesters said in an interview with the Bangkok Post on Friday that he saw no peaceful way out of the turmoil.

"A House dissolution cannot solve the problem," said Chavalit Yongchaiyudh, who became the first political casualty of the protests against the current cabinet when he resigned as deputy prime minister on Tuesday.

"So I see (the answer in) a putsch," he told the English-language daily.

Somchai, who has said he will set up a commission to investigate Tuesday's violence, has so far remained largely silent on how he will deal with the challenge to his government.

"I am open to options from all sidest but I have to use my own judgement on what is the most appropriate action," he told reporters Friday.

The PAD launched their street campaign in late May, saying the ruling People Power Party (PPP) is running the nation on behalf of ousted premier Thaksin Shinawatra and only came to power because of vote-buying in December elections.

Turmoil escalated on August 26 when PAD supporters stormed the prime minister's Government House offices, prompting the Criminal Court to issue arrest warrants for nine PAD leaders on charges including insurrection.

But the Appeals Court on Thursday revoked arrest warrants on the serious charges of insurrection, paving the way for the seven men, including PAD co-founder Sondhi, to give themselves up.

Also Thursday, the Criminal Court freed two other PAD leaders, Chamlong Srimuang and Chaiwat Sinsuwong, on bail, in a ruling greeted by jubilant PAD supporters at Government House as a victory.

PAD leaders have been released on bail of 100,000 baht (2,900 dollars) each -- although instead of paying they presented senators as their guarantors -- and a police official told AFP they will have report again on October 24.

The PPP has since its election been beset by protests and court decisions against it, one of which removed Somchai's predecessor Samak Sundaravej from office last month and brought in the new cabinet.

Thaksin -- who is Somchai's brother-in-law -- now lives in England and is seeking political asylum, claiming he will not get a fair trial on corruption charges launched by the junta which toppled him in a coup in September 2006.