The New Nation - Internet Edition

125 killed as gunmen rampage Mumbai: Americans, Britons singled out: Emergency meeting at White House: India blames outside involvement

Gunmen stormed the Taj Mahal Hotel in Mumbai on
Thursday. Exchange of fire sets the dome of the building
ablaze. Guests scamper to safety. Photo: Agencies

Agencies, Mumbai

The Gunmen targeted at least seven sites in Mumbai late on Wednesday, killing at least 125 people and injuring 300. Flames were seen rising from the roof of one hotel where people were trapped.

Indian military and police had begun an operation to free hostages at the hotel, the Oberoi-Trident, where dozens of people are said to remain trapped or held hostage, reports said. A home ministry official said between 20 and 30 people at the hotel might still be hostages, while the owners said some 200 people were trapped inside.

Police earlier said hostages had been freed from another luxury hotel, the Taj Mahal Palace, but explosions and gunfire were still being heard by witnesses outside.

A stand-off continues at a Jewish centre, where an Israeli rabbi and his family are believed to have been taken hostage. One militant reportedly phoned local TV from the centre offering to negotiate over the release of hostages.

The Indian navy said it was searching ships off the west coast following reports that gunmen had arrived in Mumbai by boat. The UK Foreign Office said a British national had died; a German, a Japanese man and an Italian are also among the dead. The Pakistan-based militant group Lashkar-e-Toiba, which has been blamed for past bombings in India, denied any role in the attacks.

In a televised address, Indian PM Monmohan Singh said the government "will take whatever measures are necessary to ensure the safety and security of our citizens".

He described the attacks as "well-planned and well-orchestratedt intended to create a sense of panic by choosing high profile targets and indiscriminately killing foreigners". The perpetrators were "based outside the country", he said, adding that they "had come with single-minded determination to create havoc in the commercial capital of the country".

India has complained in the past that attacks on its soil have been carried out by groups based in Pakistan, although relations between the two countries have improved in recent years and Pakistani leaders were swift to condemn the latest attacks.

Amid international condemnation of the attacks, US President George W Bush telephoned Singh to offer his condolences and support.

In the attacks late on Wednesday night gunmen, using grenades and automatic weapons, targeted at least seven sites including the city's main commuter train station, a hospital and a restaurant popular with tourists.

Police say 14 police officers, 84 Indian nationals and six foreigners have been killed. Four suspected terrorists have also been killed and nine arrested, they add.

State police chief AN Roy earlier told local television that hostages held by the gunmen at the Taj Mahal Palace hotel - one of Mumbai's most famous hotels - had been freed. Witnesses said civilians could be seen running from the hotel, some with suitcases. Ambulances were also reported to be arriving.

But the BBC's Mark Dummett, outside the Taj Mahal, says the situation has since become very confused, with the sounds of explosions and gunfire being heard from within the hotel, suggesting the siege is not yet over.

Earlier in the day, Indian commandos had been seen entering the hotels but there was little detail on the operation.

Meanwhile, the bosses of the Oberoi-Trident hotel say some 200 guests may still be trapped in their rooms.

Earlier eyewitness reports from the hotels suggested the attackers were singling out British and American passport holders.

If the reports are true, our security correspondent Frank Gardner says it implies an Islamist motive - attacks inspired or co-ordinated by al-Qaeda.

A claim of responsibility has been made by a previously unknown group calling itself the Deccan Mujahideen. Our correspondent says it could be a hoax or assumed name for another group.

Countrywide alert: BSF goes red on border

Security measures have been tightened at important
establishments in the city after the deadly Mumbai attacks
on Thursday. This photograph was taken from Sheraton Hotel.
Banglar Chokh

Staff Reporter

Home Secretary Abdul Karim and Inspector General of Police Nur Mohammad yesterday dispelled the possibility of any militant attack in the country.

Meanwhile, Indian Border Security Force yesterday issued a red alert on their side of the border after over one hundred people were killed in deadly militant attacks in Mumbai Wednesday night.

BSF authorities also ordered their troops to shoot at sight any civilian in the area after evening. The authorities also imposed ban on movement of civilians along the frontier.

However, they said they had asked all foreign organisations and international hotels to take extra security measures as a precaution. Director General of RAB, Hassan Mahmud Khondokar, representative of BDR, Dhaka Metropolitan Police Commissioner Naim Ahmed and other officials were present.

"Bangladesh has no reason to be alarmed by the tragic incident in India because the government here is vigilant about preventing any militant activity," said the Home Secretary.

He added, nevertheless, "The government has taken a coordinated plan to save the country from radical and extremist attacks." Though there is no fear in Bangladesh, precautionary measures will be taken, he said.

"Law enforcing agencies and Bangladesh Rifles have also been alerted," said the Home Secretary.

The law enforcing agencies have been put on alert across the country following the terrorist attacks in Indian financial capital Mumbai, he said.

"All the units of law enforcing agency, including BDR, SB, DB and RAB, have been put on alert following the terror attack in Mumbai," Nur Mohammad told reporters at Razarbagh Police Lines while attending the final match of police handball competition.

He said tight security measures have also been taken at important spots, particularly the diplomatic zone, to avert any untoward incident. Several check posts were also set up at different strategic points in the city.

While visiting Gulshan area this correspondent found additional police force deployed to maintain tighter security at the diplomatic zone and the business centers.

Despite the border alert export and import activities between the two countries through the land port remained normal.

Obama’s New Deal

Hasnat Abdul Hye

All eyes are now riveted on Barack Obama, the President-elect and they do not belong to Americans only. People and governments around the world are anxiously waiting to see how the country with the largest economy of all addresses the severest economic crisis since the Great Depression in the1930s.

Arguably, Barack Obama faces a dilemma in that he does not have any executive power now and at the same time he cannot be seen as a mute witness to the financial catastrophe that has engulfed America and the rest of the world. At the minimum, people at home and abroad expect him to make such policy announcements as will restore confidence in the American and global economy. His wariness to distance himself from the rescue measures of President Bush is understandable. But in a crisis of the magnitude that has emerged, there cannot be too much of differences on ideological ground between the Democrats and the Republicans on what needs to be done in the short and the medium terms. Clearly, unfettered laissez faire cannot prevail under either of the two sides of the ideological divide. As government rescue measures and stimulus package, ranging from loans to purchase of assets, cover both financial institutions in the real economy, many of the shibboleths of free market will be thrown overboard. Strengthening of the regulatory regime over financial institutions and the market will also call for a more dominant role of the government. This will imply curbing of free market as it has been known to work so long and expansion of the role of the government in the economic life of people. The market economy model will not be abandoned as a result but its unbridled power would be held in check. The restraining of market with comprehensive rules and regulations will be necessary for two reasons. First, to prevent the recurrence of similar financial meltdown, spilling into the real economy, in future. Second, to allow the new policy measures to work out effectively.

Fortunately for Barack Obama, the role of the government in a crisis like the present one does not have to be re-invented. He has only to look back at the New Deal programme of Franklin Roosevelt which successfully addressed the Great Depression of 1930s. Many of the institutions, policies and programmes introduced then continued till the beginning of the Reagan era when conservative policy took over. It is now part of the folklore of government that free market under conservative governance runs the risk of going off the rails because of the unhindered pursuit of profit motive. The undoing of the Glass-Stegall Act that separated commercial banking from investment banks is one of the main causes for the financial meltdown and it took place under Republican watch. The lack of enforcement of the regulatory framework that allowed the crisis to build up also was the result of a faith in a self-correcting market. Under Republican Administration, since Ronald Reagan, the Wall Street and the government have worked as close partners, with leaders of the former assuming important positions in Administrations and vice-versa. FDR's New Deal was a sharp departure from this cosy relationship between government and the market.

Barack Obama will no doubt, take a leaf out of FDR's New Deal in regulating the financial market. In the present circumstances, there will also be need to take over partial ownership of some banks and manufacturing companies, like auto industries. This will bring about change in corporate governance, something that was not necessary under the New Deal in any significant way. The result will be greater transparency and accountability of the restructured corporate bodies. Even those companies that will not come to be owned partially by the government will be under pressure to adopt the same corporate culture. Both investor and consumer interest will be better served and protected as a result.

Following the example of New Deal, Barack Obama will have to take up a substantial fiscal stimulus package to kick-start the economy. The objective will be to increase the buying power of consumers and job creation. Already, the outline of a $600 billion stimulus package has been indicated by the President-elect. It is five times more than what he had in mind originally while campaigning as a candidate. Infrastructure development, renewable energy and other campaign promises will, no doubt, come under this package. Aided by middle class tax cuts, as promised during the campaign, consumer spending will increase, sustaining the recovery of the economy out of recession.

The problem facing Obama, however, is more complex and acute than the one FDR had to tackle. It is not only a crisis of financial meltdown, affecting financial institutions that has shaken the market. Simultaneously and as a result of the same, the real economy has also come under pressure. This is seen in the applications for a share of the rescue package by the icon of American industries, the auto manufacturers. This may be followed by application from others in the coming months. FDR did not have to face the double whammy of twin crisis to the same degree. All recessions and depressions taper off at the end, under their own momentum with the 'invisible hand' of market acting as the correcting mechanism. But this automatic process takes heavy toll on the economy and the public. No government can remain aloof and wait for the invisible hand to work out the 'magic of the market place'. The financial recovery and the stimulus package have proved to be effective in the past and it will be so in the present case also. The only imponderable is, how much damage will be done to the economy and what misery will be inflicted on the people before the government intervention policy and programmes bear fruit. To minimise the damage and suffering there must be an ideal and effective recovery plan. Barack Obama and his team's goal will be to adopt and implement that particular plan. This just cannot be wished and has to be worked out in detail. Obama may not have found it already, but he has put in place a team who will be able to advise him on one before long.

Tangail power plant opens: Fuel price cut now ruled out

Special Assistant to the Chief Adviser Dr Tamim
(middle) visiting the new power plant in Tangail. NN
photo

Staff Reporter

Special Assistant to the Chief Adviser for Energy and Power Prof M Tamim yesterday ruled out the possibility of reducing prices of fuel during the tenure of the present government in the wake of fall in its price in the international market.

He told this to the reporters at the inaugural ceremony of 22-megawatt Tangail Power Plant in Tangail.

"The tenure of the present government will end in the next 45 days. It is not possible to reduce the fuel price during this time. The price might come down in January next," he said.

Listing the achievement of the present government Tamim said that the incumbent government has fulfilled its pledge one after another. "We have already added 350MW of power during last two years against our pledge to generate 1000MW of power. Another 450MW to 500MW will be added by February next year," he said.

He called for formulating an unified policy to solve the power crisis. "The next elected government will have to finalise the policy on coal lifting to addressed the power crisis," he noted.

He said the government has already approved the merchant power plant policy to encourage the private sector to generate power in the country. This will encourage the private entrepreneurs to set up power plant without any hindrance.

He further said the renewable energy policy will be approved by the cabinet next week.

He expressed the hoped that the next elected government will come forward to explore the gas fields to solve the energy crisis as the demand for it mounting steadily. He, however, hastened to add that only gas and coal would not able to meet our entire energy demand. For this, we have to explore other sources for sustainable development of the country, he added.

Power Division Secretary Dr M Fazul Karim Khan said that the present government has given permission to set up 22 small power plants across the country, of them four have already been commissioned. The rest power plants will go into operation by February next year, he informed.

Speaking on the occasion, Tahajib Alam Siddiqui, managing director of Doreen Power Generations and Systems Limited, said that they will complete the installation of three more small power plants having capacity of generating 44MW of power in Feni and Narshingdi by January next year.

The World Bank and NCC Bank have financed the implementation of the four power plants having 66MW capacity.

World Bank Country Director Zian Zhu, Power Development Board Chairman Sawkat Ali, Power Cell Director General Abdul Jalil, NCC Bank Managing Director Md Nurul Amin, Bangladesh Bank Project Director Abul Kasem, among others, addressed the function.

Somali pirates’ role not ruled out

Agency, Kochi

A top Indian naval official has said that he would not rule out the role of Somali pirates in the terror strikes in Mumbai in view of the recent action by the Navy against the sea bandits in the Gulf of Aden.

Asked whether there can be any connection between the pirates and the attacks in Mumbai, Vice Admiral Sunil K Damle, Flag Officer Commanding-in-Chief, Southern Naval Command, said such a thing cannot be ruled out.

"I cannot say but I will not rule it out. I cannot say whether there is connection or not. All I am saying is that we very strongly suspect such a thing can happen," he told reporters on board the INS Tir.

"It is a fact that our action against the Somali pirates in the recent past has got the Indian Navy into focus particularly in that area", he said, adding this also brought in a dangertIndian Navy being targeted by these people also in addition to the terrorists," he said.

"These bad elements unfortunately have a fair amount of illegal money at their disposal. Even if Somali pirates were not taking direct action against us, there is every possibility of them pumping in the money into such organisations which are capable of taking terrorist action against us", he said.

On reports that the attackers had sneaked in to Mumbai through sea routes, he said "we have already started investigating the vessels which are considered suspicious on the west coast, particularly in the vicinity of Mumbai".

He said the Navy has stepped up security not only as a result of what is happening in Mumbai. "We have already taken security measures because we feel they could be target of those who feel threatened by the naval action. We have tightened various kinds of security measures", he said.

BB Governor dismisses WB projection: GDP to grow by 6.2 pc

UNB, Dhaka

Bangladesh Bank Governor Dr Salehuddin Ahmed yesterday brushed aside the World Bank's projection on the country's poor economic growth for the current fiscal year and said their forecast is too much irrational.

"Their projection is too much dependant on numbers only," he told a seminar on Bangladesh's economic prospects and challenges in view of the current global recession at Spectra Convention Centre.

Economists, senior bankers, business leaders, experts and former bureaucrats took part in the discussion organized by Citibank NA. World Bank's South Asia Division economist Anushka Shah presented the keynote paper.

"The GDP estimate of 4.8 percent is absurd… it's irrelevant," said the Bangladesh Bank Governor, adding that the central bank still hopes that the GDP growth would remain at a range between 6.0 and 6.2 percent during the current fiscal year.

The official estimate, however, still remained at 6.5 percent, while the World Bank on Wednesday estimated it at 4.8 percent in case of worse scenario and 5.4 percent as per a liberal estimate.

Dr Salehuddin said he discouraged the World Bank and the IMF several times not to put forward their comments based on figures only.

He appeared confident to say that the country's economic growth would not be affected to an extent as apprehended by the development partner in view of the recession. Because, he said, the exports and remittance still remained strong while the macroeconomic situation remained stable.

"The foreign exchange reserve is fine and the exchange rate remained stable," he added.

Replying to a question after the seminar, the central bank governor told reporters that he does not think the new elected government would feel an economic pressure after assuming power. "We're in a right track… but, still it's a challenge," he said.

He explained the trend of remittance and exports at the seminar apparently in response to the World Bank's apprehension that these would be affected due to global recession, pulling down the GDP growth.

The Governor said the remittance inflow slowed down as compared to the last fiscal year, but it remained well on track on month-to-month basis. "The trend is not negative, it's positive."

He said the construction work in the Middle East would slow down due to the recession, but it's not that the ongoing construction would close down overnight.

Exports increased 42 percent even in the peak of the turmoil, indicating higher demand for low-end Bangladeshi apparel items in the developed country markets, he said. "The recession is rather an opportunity for Bangladesh."

In response to a demand for depreciation of local currency, the BB Governor suggested the business community to keep in mind that the exchange rate is not the only component to be competitive. "There are other tools to be competitive… the workers here are the world's cheapest," he said.

He added that the central bank does not administer the exchange rate, which is determined on the basis of demand and supply.

President, CA condemn terror strikes

UNB, Dhaka

President Professor Dr Iajuddin Ahmed expressed his deep shock and sorrow at the loss of lives and the taking of hostages in terrible terror strikes in Indian business-capital Mumbai since Wednesday night through Thursday.

In a message of condolence to his counterpart Mrs. Pratibha Devisingh Patil he noted that "Bangladesh stands firm with her friends in India at this hour of grief".

President Iajuddin conveyed his deepest sympathies to the bereaved families.

Chief Adviser of the Caretaker Government Dr Fakhruddin Ahmed in a separate message to Indian Prime Minister Dr Manmohan Singh condemned the acts of terror - which were unleashed on the city of Mumbai last night - as "heinous crimes (committed)".

Dr Fakhruddin Ahmed expressed the hope that the release of the hostages would be speedy.

He conveyed his sympathies for members of the bereaved families and prayed for an early recovery of those injured in the gun and bomb attacks, which reportedly left over a hundred people dead and around 300 others wounded.

Interview of BNP nomination seekers begins

Staff Reporter

The Parliamentary Board of BNP yesterday started interviewing nomination seekers for contesting the next parliamentary elections on December 29.

A 11-member parliamentary board headed by party Chairperson Begum Khaleda Zia conducted the interview at her Gulshan office in the city.

"The parliamentary board began interviewing of nomination aspirants at 11.00 am," Rizvi Ahmed, office secretary of the party told journalists.

The first batch being interviewed is from Brahmanbaria under Chittagong Division seeking tickets to run the polls, he added.

He said after interviewing Brahmanbaria candidates, applicants from Comilla, Feni and Sylhet division will be interviewed.

He also said that nearly 2000 BNP activists are vying for tickets to run the forthcoming parliamentary polls on December 29.

Earlier, before the interview the candidates gathered under a canopy at Shahabuddin Ahmad Park. Over 300 volunteers have been engaged so that the interviews are conducted smoothly.

The BNP parliamentary board members include the party Secretary General Khandker Delwar Hossain, standing committee members Khandkar Mosharraf Hossain, Chowdhury Tanveer Ahmed Siddiqui, RA Ghani, M Shamsul Islam and Mahbubur Rahman.

Hundreds of supporters have assembled at the party's Chairperson's. Gulshan office.

Traffic movement on the road in front of the office has been suspended creating a serious traffic jam in the nearby roads and lanes. Security has been beefed up in the area on the occasion. BNP completed sale of nomination papers on November 25 and 26.

Don't tilt towards any party, AL urges EC

Staff Reporter

Awami League (AL) yesterday urged the Election Commission (EC) not to tilt towards any particular party in implementing different rules of the recently announced Representation of People Order (RPO).

HT Imam, Co-chairman of the AL Election Committee, made this remark while talking to reporters after a meeting between European Union Election Observation Mission to Bangladesh and AL president Sheikh Hasina at her Sudha Sadan residence.

Referring to the question of awarding nomination to a candidate for the upcoming election on the basis of popularity in grassroots levels, he said, " Just now we will not say whether any party is violating this rule. But we hope the EC will take legal steps if any party violate this rule."

He also expressed AL's dissatisfaction on the EC's activities for rescheduling the polls schedule without consulting party.

On behalf of the party he alleged that the EC was trying to bypass the demand of the majority people for holding the national election on December 18 only to facilitate the position of a particular political party.

He also informed that AL sought for necessary assistance from the EU mission for holding the parliamentary polls free, fair and credible.

AL requested the EU mission to oversee the polls whether it would be held in a fair manner and if the voters could cast their votes spontaneously and to keep an eye on various post-election unexpected occurrences.

Talking to newsman, Alexander Graf Lambsdorff, head of the EU Mission, said they had some confidential talks with AL president and said that he would not disclose this in detail just now.

Meanwhile, Sheikh Hasina expressed her deep concern over the terrorist attacks in the Indian city of Mumbai on Wednesday night.

Talking to reporters former ambassador M Jamir said Sheikh Hasina during the meeting with the EU mission expressed deep sympathy for the victims of the dreadful attack in Mumbai where the number of casualty were over a hundred people.

Jamir said she asked her party's leaders and activists to refrain from all types of violences.

2 RAB members arrested with looted goods

Staff Reporter

Two RAB members, arrested by Police of Sabujbagh areas with looted foreign currencies at the city's Paltan area, were sent to jail yesterday.

Police and locals of Sabujbagh caught two members of Rab-3 Wednesday as they were fleeing after looting foreign currencies and other valuables from a money exchange organization at the city's Paltan area.

The two RAB members caught were identified as Faruq Hossain and Kamal Hossain.

Police recovered US$ 1,200, Saudi Riyal 2,400 and Tk.5,000 two mobile phones and RAB uniforms from the Noah microbus the plain-clothed RAB men were riding.

They picked Ali Imam, owner of the money exchange from the Wills Little Flowers at Paltan, and an employee of the adjoining office of Ema International, blindfolded them and forced them to get on the microbus.

According to Reyas an employee of the money exchange organization, the RAB men were trying to flee with the looted goods leaving them near the Khilgaon flyover. But as he cried for help, Sabujbagh police and several hundred locals chased the law enforcers and caught them.

Farid Ahmed, officer-in-charge of Paltan Police Station, told the New Nation that Reyas filed a case against the accused persons in this connection.

RAB-3 chief Lt Col Mohammad Zakir Hossain Bhuiyan told this correspondent that the accused two persons would be punished as per general law of the land and the departmental law.