Tuesday, June 20, 2006

Morning Papers - continued ...

IRA Novosti

Iran's top diplomat lauds Iran 6 incentives, but gives no reply
BAKU, June 20 (RIA Novosti) -Iran's foreign minister Tuesday spoke positively about a package of incentives proposed by six international negotiators on Iran's controversial nuclear program but said it had set no deadline for a response.
"Iran has put its fair position on the table and our friends in Europe responded with fresh proposals," Manouchehr Mottaki told a news conference in Azerbaijan's capital, Baku, on the sidelines of an Organization of the Islamic Conference meeting.
The minister promised to study carefully the proposals of Iran Six, the five permanent members of the UN Security Council and Germany.
EU foreign policy chief Javier Solana presented a package of incentives for Iran, which many countries suspect of pursuing a secret weapons program, in return for its consent to halt uranium enrichment during his visit to the Islamic Republic on June 6.

http://en.rian.ru/world/20060620/49796519.html


Russia and the EU: energy dialogue or energy conflict?
MOSCOW, June 15. (Viktor Ivanter for RIA Novosti) - Recently, we have seen that Russia and the West - principally the European Union - have chosen a conflict method of negotiating energy problems.
We often hear statements such as "We can redirect resources from Europe to the East," or "We need to end our dependence on Russia," etc. Should Western distribution facilities be open to Russian companies? Should Russian resources be open to foreign companies? Is Russia trying to monopolize the European market? Will Russia dictate prices to Europe or will Europe dictate prices to Russia? All these approaches bring to mind conflict resolution studies. We consider them non-productive and favor the establishment of an energy union based on long-term strategic relations between energy suppliers and consumers.

http://en.rian.ru/analysis/20060619/49745961.html



Why does Pentagon need nonnuclear warheads?
MOSCOW. (RIA Novosti military commentator Viktor Litovkin.)
On May 22, 2006, The Washington Post carried an article "A Missile Strike Option We Need" by two former U.S. Secretaries of Defense - Harold Brown (1977-1981) and James Schlesinger (1973-1975).
Brown and Schlesinger suggested installing nonnuclear warheads on U.S. strategic missiles, first of all, Trident II D5 submarine-launched ballistic missiles (SLBMs), which have multiple independently targeted reentry vehicles (MIRVs). These warheads can hit terrorist bases more effectively than, say, cruise missiles or free-fall bombs. Such precise strikes could be dealt minutes after the military receive information about terrorist bases and their coordinates and would involve no bombers or carrier task forces and submarines operating in direct proximity to hostile areas.
The U.S. establishment is so fascinated with this idea that the Congress has started discussing the allocation of appropriations for nonnuclear warheads. But it appears this will not become the ultimate weapon in the fight against international terrorism because, as any sober-minded military expert knows, counter-terrorist operations require more subtle and diverse weapons systems than warheads and strategic missiles. Then why does the Pentagon need MIRVs for inter-continental ballistic missiles, and why are its high-ranking lobbyists so concerned about this?
The answer may not be as simple as one thinks.

http://en.rian.ru/analysis/20060607/49167280.html



Russian army to receive 250 new types of weaponry in 2006
MOSCOW, June 20 (RIA Novosti) - Russia's Armed Forces will receive up to 250 types of advanced weaponry in 2006, a deputy defense minister said Tuesday.
"This year we will finish testing about 250 new types of weapons," General Alexei Moskovsky said. "I hope that all of them will be put into service with the Russian army."
The general said that Russia's orbital group would receive new satellites, and that Glonass system of navigational and global positioning satellites would be fully restored to operational condition.
Defense Minister Sergei Ivanov said in March that the Russian orbital group consisted of 96 satellites, of which 59 are used for military purposes. The Glonass system currently has 17 satellites and two laser reflectors in orbit.
Moskovsky also said the Russian Air Force would receive modernized Su-27 Flanker fighters, Su-24 Fencer tactical bombers, and Su-25 Frogfoot close support aircraft, and that the Land Forces would get modernized T-72 and T-80 tanks, and new T-90 main battle tanks.
A government minister said in May that Russia's state defense order would increase by 20% to 303.7 bln rubles ($11.2 bln) in 2007.

http://en.rian.ru/russia/20060620/49785771.html


Russia says no talks with kidnappers of diplomats in Iraq
MOSCOW, June 20 (RIA Novosti) - The speaker of the upper house of Russia's parliament said Tuesday there could be no talks with terrorists who seized Russian diplomats in Iraq and no concessions would be made.
A Web site often used by terrorists claimed Monday that the Mujahideen Shura Council, a group linked to the Iraq cell of al-Qaeda, had kidnapped four employees of the Russian Embassy in Baghdad on June 3.
"Russia has always held the position that talks on political terms with terrorists are out of the question," Sergei Mironov said.
Mironov said Russia would do everything possible to secure the release of the diplomats. "We never leave our people," he said.
One Russian diplomat was killed and four others kidnapped when unidentified gunmen attacked an embassy car in the Iraqi capital. The kidnappers are yet to make any ransom or other demands.

http://en.rian.ru/russia/20060620/49780239.html


The Moscow Times


Europe, Russia and Europe need alternative energy sources.

Schröder Tells Europe to Trust Gazprom

By Stephen Boykewich
Staff Writer
Former German Chancellor Gerhard Schrцder speaking to investors at a conference on Monday morning. He touted Russia as a reliable energy supplier.
Former German Chancellor Gerhard Schröder said Monday that it was "foolish" to think Europe could reduce its dependence on Russian oil and gas, even while he insisted Russia was a reliable energy supplier.
"One should not pretend that there is a reliable alternative to Russia," said Schröder, now an executive at a subsidiary of Gazprom, at the start of a two-day investment conference organized by Renaissance Capital.
"Mutual dependency can create trust between Russia and Europe. Europeans know that there is no truly reliable alternative to Russia as an energy partner," Schröder said.

http://www.themoscowtimes.com/stories/2006/06/20/002.html


Gazprom, Shell Have $7Bln Plan

Reuters
Gazprom and Royal Dutch/Shell are thinking about building a gas-to-liquids plant in Western Siberia in a project potentially worth $7 billion to $8 billion, Gazprom said Monday.
"We are considering building a 12 bcm [billion cubic meter] gas-to-liquids plant in Nadym together with Shell," Gazprom deputy CEO Alexander Ryazanov said at the Renaissance Capital investors conference.
Shell confirmed it had entered talks with Gazprom, but it stressed that discussions were at an early stage and declined to put a potential value on the project.
"We are in discussion with Gazprom over a preliminary feasibility study for a gas-to-liquids project in Russia," a Shell spokesman said.
The estimate Ryazanov gave for investment in the project, Russia's first GTL plant, would put it on a a par with Shell's proposed investment in the world's biggest GTL plant in Qatar.

http://www.themoscowtimes.com/stories/2006/06/20/042.html


Chaika Picked to Replace Ustinov
By
Oksana Yablokova
Staff Writer
Mironov gesturing as he talks Monday with Chaika in the Federation Council.
President Vladimir Putin picked Justice Minister Yury Chaika as the next prosecutor general on Monday, tapping a career prosecutor who is seen as highly competent, loyal to Putin and independent of the Kremlin clans.
Chaika is one of the last relics from the era of former President Boris Yeltsin to remain in the Cabinet, and his work on prison reform has won praise from nongovernmental organizations.
Putin on Monday sent a letter to the Federation Council, asking that it confirm Chaika as prosecutor. The council set the vote for Friday, three weeks after the last prosecutor general, Vladimir Ustinov, resigned.
Chaika is expected to be easily confirmed to the post.

http://www.themoscowtimes.com/stories/2006/06/20/001.html


Putin aide dismisses N.Korean missile reports as "psycho factor"

RIA NOVOSTI. June 20, 2006, 7:24 PM
MOSCOW, June 20 (RIA Novosti) - A Russian presidential aide said Tuesday the "imminent" launch of a North Korean ballistic missile was largely a matter of psychology.
It is widely believed that Pyongyang is stepping up preparations to fire the Taepodong-2, a two-stage ballistic missile with a range of up to 6,000 kilometers (3,700 miles) that could in theory deliver a warhead to Alaska, USA.
"Let them launch it first and then we will see whether it will fly, where it will fly, and whether it can reach its target in the first place," Igor Shuvalov said.
Last month, a U.S. space satellite spotted a booster rocket and several fuel tanks on a launch pad in the east of the communist country, which has claimed it already has a nuclear capability.
According to regional media reports, the missile could be fired at any moment.
Pyongyang last tested a long -range missile in 1998, when it fired the Taepodong-1 missile, with a range of 2,000km (1240 miles), over Japan. The missile landed in the Pacific Ocean, causing a shock in Tokyo.

LUKoil to place 25% of oil production, 30% of refining abroad
RIA NOVOSTI. June 20, 2006, 7:20 PM
MOSCOW, June 20 (RIA Novosti) - Russia's largest independent crude producer LUKoil [RTS: LKOH] plans to place up to 25% of its oil production and some 30% of refining capacities abroad, the company's vice president said Tuesday.
Speaking at an annual investors' conference organized by Renaissance Capital, Leonid Fedun said the company would earn 25-30% more in revenues than if all production units were in the country.
Fedun said LUKoil was planning projects in Central Asia and Kazakhstan, in the Middle East and Latin America, as well as West Africa.
He said taxation in Russia was "the toughest" and tax rates abroad were much lower. "That's why we are going to these regions," Fedun said.
Speaking about prospects of buying oil refineries in eastern Europe, Fedun said LUKoil had suspended investment in the region. "In 2007-2008, the investment attractiveness of capacities in eastern Europe will be much more interesting for us than now," he said.
Fedun said the issue was highly politicized at the moment, but added he hoped partners in the region would assess the economic attractiveness of such projects.
Fedun also said LUKoil was considering building a new oil refinery in Russia.

Deposit access could be granted for company access - Putin aide
RIA NOVOSTI. June 20, 2006, 7:04 PM
MOSCOW, June 20 (RIA Novosti) - Russia will let foreigners invest in hydrocarbon projects on its territory if Russian companies are given parity access to foreign business, a Kremlin aide said Tuesday.
Russian companies have complained about discrimination on European markets and energy giant Gazprom was on the verge of being banned from taking over Britain's largest gas-distribution company, Centrica, by British legislators in spring.
"It must be parity investment - 50 by 50 [%], or 25 by 25," said presidential aide Igor Shuvalov.

http://www.themoscowtimes.com/doc/HotNews.html


The First-Class Berth
By Alastair Gee
Sometimes, a villa in Nice just doesn’t cut it. The glint of Caribbean sunlight off a private jet fails to tug at the heartstrings like it once did, and, for all the waxing and resprays, the luster of the classic Bentley’s bodywork seems to have dimmed.
Russia’s super-rich have turned to a pricey new hobby to get their spending fix, and aren’t looking beyond their native shores to enjoy the purchases. The popularity of yachting on the country’s seas and waterways has skyrocketed in the past five years, with the wealthy spurning the usual Mediterranean playgrounds for the delights of the Moscow region, Volga River and even Novosibirsk.
Customers can buy boats from showrooms in the capital, and even have a super-yacht built to their specifications in the center of town. Yacht clubs are springing up along the banks of the Moscow River and reservoirs, and their posh restaurants are now the places to be seen. In a city as landlocked as this one, something strange is happening: Yachting is coming of age.

http://www.go-magazine.ru/articles/show/745


Rebel Leader Sadulayev Shot Dead
By
Carl Schreck
Staff Writer
The body identified as Sadulayev
Chechen rebel leader Abdul-Khalim Sadulayev was killed by special forces over the weekend in an operation that Chechnya's prime minister trumpeted as a fatal blow to the insurgency.
Sadulayev, however, is credited with persuading warlord Shamil Basayev not to carry out any major terrorist attacks since Beslan.
Chechen warlord Doku Umarov is to take over as rebel leader.
Details of Sadulayev's death remained sketchy Sunday.
Chechen Prime Minister Ramzan Kadyrov said he was shot dead Saturday in his hometown of Argun during a raid prompted by a tip from someone in his inner circle.
Kadyrov, posing and grinning for television cameras next to a battered, half-naked body that resembled Sadulayev, said the informant had tipped off police for drug money.

http://www.themoscowtimes.com/stories/2006/06/19/001.html



Rein In Racism Now, UN Official Declares
By
Anastasiya Lebedev
Staff Writer
Doudou Diene meeting journalists.
With violent attacks on the rise, the state must do more to combat racism and xenophobia, a United Nations official said Friday.
Doudou Diene, the UN's special rapporteur on racism, said he would urge Russia, in a report to be filed with the UN in the fall, to track the growth of racist attacks, adhere to international standards on protecting minority rights and encourage tolerance.
Diene spoke at a news conference in Moscow after a weeklong trip to Moscow and St. Petersburg.
Russian officials and NGOs tend to see the current situation differently, Diene said, with authorities blaming the recent spate of attacks on a handful of marginal hate groups and NGOs saying Russia has a deeper, cultural problem.
"In Soviet times, the state encouraged friendship between different peoples," Diene said. "It doesn't do that anymore, and as a result, there is an ideological vacuum."

http://www.themoscowtimes.com/stories/2006/06/19/011.html



Putin May Back Dark Horse in 2008
By
Oksana Yablokova
Staff Writer
President Vladimir Putin says his successor could be a little-known figure, suggesting insiders like First Deputy Prime Minister Dmitry Medvedev and Defense Minister Sergei Ivanov might not get the president's support.
Speaking to reporters Friday in Shanghai, where he was attending the Shanghai Cooperation Organization summit, Putin for the first time suggested that a dark horse could wind up in the Kremlin after he leaves.
The next president could be "someone who is not very well known ... not necessarily one of two people," news agencies quoted Putin as saying, a reference presumably to Medvedev and Ivanov.
Putin said in May that he would name a preferred successor before 2008, when his term ends, explaining that he wanted to ensure stability and that, as a Russian citizen, he has a right to express his point of view.

http://www.themoscowtimes.com/stories/2006/06/19/002.html


The War of the Putin Succession
By Alexei Bayer
To Our Readers
The Moscow Times welcomes letters to the editor. Letters for publication should be signed and bear the signatory's address and telephone number.
Letters to the editor should be sent by fax to (7-495) 232-6529, by e-mail to oped@imedia.ru, or by post. The Moscow Times reserves the right to edit letters.
President Vladimir Putin has repeatedly said that he plans to step down after serving his constitutional limit of two terms in office. For his Kremlin entourage, this has meant that the search for a successor has been on since at least the 2004 presidential election.
The successor problem is nothing new in modern Russian history. In the 70 years of its existence, the Soviet Union never managed to solve the problem of transferring power. None of the more than half-a-dozen Great Leaders starting with Lenin was able to anoint a successor and end his days in peace and quiet. The only way to leave the Kremlin was either in an oak box tastefully lined with red bunting or in disgrace after a palace coup.
This probably makes the Soviet Union unique among known polities, from primitive tribes to modern industrial democracies. Although few can match Rome's 2,000-year record of apostolic succession, Britain and the United States have long enjoyed political continuity. Conversely, whenever succession breaks down, the entire system falls into crisis.

http://www.themoscowtimes.com/stories/2006/06/19/006.html


And the Winner Is...
The Kinotavr film festival ends with a round of prizes for Russia's younger batch of directors, while some more established filmmakers are shut out.
By Tom Birchenough
Published: June 16, 2006
If anyone still doubted that a new generation of Russian film directors has appeared, the closing ceremony of the Kinotavr film festival in Sochi on Monday night offered further -- perhaps final -- confirmation.
And with 14 premieres out of the 15 films in its main competition, Kinotavr hit a high artistic level that it hasn't been able to boast of in many years, despite its status as Russia's main national film festival. Moreover, the fact that directors and their producers chose to bow their films there, rather than at this month's Moscow International Film Festival, served up a message that the latter event would be foolish to ignore.

http://context.themoscowtimes.com/stories/2006/06/16/102.html



Houston Chronicle

Storms won't stall, but more rain will fall in Houston
By ERIC BERGER
Copyright 2006 Houston Chronicle
Houston escaped the heaviest rains overnight, but forecasters warned this morning that the ingredients for violent thunderstorms remain in the area.
Before sunrise this morning major rain-producing storms formed along a line just east of Houston, from Clear Lake to downtown, over the same area where Monday morning's storms were the worst.

"For Eastern Houston that's not a good thing at all," said Patrick Blood, a forecaster at the Houston Galveston office of the National Weather Service.

http://www.chron.com/disp/story.mpl/metropolitan/3985072.html


Heavy rains prompt flood watch, road closures
Staff and wire reports
Torrential downpours created a nightmare commute for Houston-area residents early today, flooding major traffic arteries and threatening some homes.
As much as 10.5 inches of rain was reported by the heart of the morning commute today, said Rusty Cornelius, administrative coordinator for Harris County Emergency Management. The National Weather Service issued a flash flood warning for Houston and Galveston counties until 10 a.m.

http://www.chron.com/disp/story.mpl/metropolitan/3982027.html



Bodies of U.S. soldiers show signs of torture

From staff and wire reports
The bodies of two U.S. soldiers who had been reported kidnapped have been found near the checkpoint where the men disappeared after an attack, senior Iraqi and U.S. military officials said this morning.
Al-Qaida in Iraq claimed responsibility for killing the soldiers, and said the successor to slain terror leader Abu Musab al-Zarqawi had "slaughtered" them, according to a Web statement that could not be authenticated. The language in the statement suggested the men had been beheaded.
Pfc. Kristian Menchaca, 23, of Houston and Pfc. Thomas L. Tucker, 25, of Madras, Ore., went missing Friday near the town of Youssifiyah, south of Baghdad. Spc. David J. Babineau, 25, of Springfield, Mass., was killed in the attack.
All were assigned to the 1st Battalion, 502nd Infantry Regiment, 2nd Brigade, 101st Airborne Division from Fort Campbell, Ky.

http://www.chron.com/disp/story.mpl/front/3985104.html



LOCAL SOLDIER 1 OF 2 MISSING IN IRAQ
23-year-old was apparently kidnapped in Friday attack
Chronicle News Services
BAGHDAD, IRAQ - One of two soldiers missing and reportedly held captive by insurgents in Iraq is from Houston.
The Defense Department identified the man as Army Pfc. Kristian Menchaca, 23.
Menchaca and Pfc. Thomas L. Tucker, 25, of Madras, Ore., were apparently kidnapped Friday night in an attack on a checkpoint outside the restive town of Yusufiya. The Pentagon said Spc. David J. Babineau, 25, of Springfield, Mass., was killed in the attack.
U.S. forces have intensified their search for Menchaca and Tucker, widening their pursuit to areas beyond Yusufiya, and drawing troops from at least three brigade combat teams.
Family members said they were awaiting word about Menchaca.

http://www.chron.com/disp/story.mpl/chronicle/3981775.html



Army charges 3 soldiers in Iraqis' deaths
Associated Press
BAGHDAD, Iraq — The U.S. Army has charged three soldiers in connection with the deaths of three Iraqis who were in military custody in northern Iraq last month, the military said today.
The Multinational Corps-Iraq said three members of 3rd Brigade Combat Team, 101st Airborne Division have been charged in connection with the deaths of three male detainees during an operation near Thar Thar Canal in northern Salahuddin province on May 9.
"A noncommissioned officer and two soldiers each have been charged with violating several articles of the Uniform Code of Military Justice including murder, attempted murder, conspiracy, communicating a threat, and obstructing justice," an announcement said.

http://www.chron.com/disp/story.mpl/front/3983373.html



Jury convicts ex-Bush official in Abramoff probe
By PETE YOST
Associated Press
WASHINGTON — A jury found former Bush administration official David Safavian guilty today of covering up his dealings with Republican influence-peddler Jack Abramoff.
Safavian was convicted on four of five felony counts of lying and obstruction. He had resigned from his White House post last year as the federal government's chief procurement officer.
The trial consumed eight days of testimony about Safavian's assistance to Abramoff regarding government-owned real estate and a weeklong golfing excursion the lobbyist organized to the famed St. Andrews golf course in Scotland and London. Safavian went on the trans-Atlantic trip while he was chief of staff at the General Services Administration, and other participants were Rep. Bob Ney, R-Ohio, two Ney aides and Christian Coalition founder Ralph Reed.
The verdict came on the fifth day of jury deliberations.

http://www.chron.com/disp/story.mpl/front/3985494.html>



(PZ) Evader Joins U.S. Merchant Marine Team for Presidential Visit
© 2006 PRIMEZONE
BELLEVUE, Wash., June 15, 2006 (PRIMEZONE) -- Bellevue, Washington-based Evader, Inc. (
www.evader.us) (PinkSheets:EVDR), the maker of electric high-performance vehicles powered by their leading-edge proprietary technology, is pleased to announce that the Company has joined forces with the United States Merchant Marine Academy (www.usmma.edu) to help celebrate the opening of its Alternative Power Program Solar Hydrogen House (http://app.usmma.edu). The program and facility will be officially opened on Monday June 19, in conjunction with the Academy's 2006 commencement exercises. Presenting the commencement speech will be President George W. Bush.

http://www.chron.com/disp/story.mpl/conws/3971663.html



Many evacuees find few jobs for taking
City, private groups try to get thousands on feet as federal aid diminishes
By MIKE SNYDER
Copyright 2006 Houston Chronicle
In their Montgomery County apartment, Jules and Marie Adams toil at their computer for hours every day, combing Web sites for job prospects and faxing dozens of letters and résumés.
In his Houston City Hall office, meanwhile, John Walsh struggles to cobble together programs to help Hurricane Katrina evacuees find jobs before their federal housing assistance ends.

http://www.chron.com/disp/story.mpl/front/3981584.html



Jury selection to begin in new trial for Yates

Five years later, experts say lack of death-penalty component could work in her favor
By PEGGY O'HARE
Copyright 2006 Houston Chronicle
Five years to the day after Andrea Yates systematically drowned her five children in a bathtub, a new panel of potential jurors will be summoned to downtown Houston on Tuesday in preparation for her new trial.
The first half of a 120-person panel will begin answering questionnaires intended to help attorneys gauge who can fairly and impartially decide whether Yates knew right from wrong when she killed her children in their Clear Lake-area home.

http://www.chron.com/disp/story.mpl/front/3981522.html



HOW WILL YOU FARE UNDER NEW TAX LAW?

Region's biggest bills are in Katy, which could see significant cuts
By DAN FELDSTEIN
Copyright 2006 Houston Chronicle
It's a contest that nobody would want to win. If you live in Katy, you have the highest school property taxes in the Houston region.
If you live in Winnie, in the East Chambers Independent School District, you have the lowest.
The owner of a $150,000 house in Katy ISD, with a homestead exemption, paid $2,700 last year compared with $1,481 in East Chambers. That's 82 percent more.
If its appraised value doesn't rise, the school taxes on the Katy home will drop 25 percent to $2,021 next year, according to a tax calculator developed by the Houston Chronicle.
The drop is because of a new tax structure the Legislature approved in its recent special session, after the state Supreme Court ruled the existing structure unconstitutional.

http://www.chron.com/disp/story.mpl/front/3981582.html



Ag tax break draws scrutiny

Lawmakers will focus on who's not paying fair share for schools
By JANET ELLIOTT
Copyright 2005 Houston Chronicle Austin Bureau
Deer play on fenced land near Spring above a huge underground reservoir holding the natural gas supply keeping Houstonians warm this winter.
The large herd also allows Houston Pipe Line Co. to receive a special agricultural valuation on its property, saving the company $400,000 in taxes it otherwise would owe Spring Independent School District.

http://www.chron.com/disp/story.mpl/special/05/legislature/2985061.html



WARY STATE HOLDS LINE DESPITE SURPLUS

Officials' fears over storm and school costs delay $655 million for other needs
By JANET ELLIOTT
Copyright 2005 Houston Chronicle Austin Bureau
AUSTIN - With a $3.6 billion surplus sitting in the state treasury, legislative leaders wouldn't be expected to be acting as if the wolf is at the door.
But concerns about long-term costs from the recent hurricanes and the impact of a school finance ruling expected soon from the Texas Supreme Court have stalled action on Gov. Rick Perry's request to spend at least $655 million on textbooks, nursing home care, trauma center funding and some higher education programs.
The $655 million, the result of budget vetoes by Perry, sits unused alongside the $1.8 billion set aside for an education spending bill that failed to be passed this year and $1.2 billion that Comptroller Carole Keeton Strayhorn said Texas gained in the last quarter of the 2005 fiscal year from higher oil and natural gas prices and from sales taxes.

http://www.chron.com/disp/story.mpl/special/05/legislature/3425692.html



$400 million surplus forecast for Texas

Associated Press
AUSTIN - Texas lawmakers will have more money to work with in this year's legislative session, Comptroller Carole Keeton Strayhorn said today, but her revenue estimate is not nearly enough to fully restore cuts to state programs two years ago.
In her highly anticipated revenue report released the day before the 140-day legislative session begins, Strayhorn reported Texas will have $64.7 billion in state money for the 2006-2007 biennium. That would give the state $400 million surplus after paying for higher-than-anticipated costs and growth in existing programs.

http://www.chron.com/disp/story.mpl/special/05/legislature/2985810.html



THE LEGISLATURE
Perry blames lobbyists and lawmakers' lack of will

He won't call another special session, saying special interests ruled the last one
By JANET ELLIOTT and R.G. RATCLIFFE
Copyright 2005 Houston Chronicle Austin Bureau
AUSTIN - Gov. Rick Perry on Friday said the Legislature failed to pass school finance reform and property tax cuts in two special sessions because it was too influenced by business lobbyists and lacked the will to act.
"Today I share the tremendous disappointment of millions of taxpayers, teachers, parents over the Legislature's failure to act on property tax relief and education reform," Perry said.

http://www.chron.com/disp/story.mpl/special/05/legislature/3318294.html



THE LEGISLATURE
Perry ponders special session to finish work on school financing
By R.G. RATCLIFFE,, POLLY ROSS HUGHES and JANET ELLIOTT
Copyright 2005 Houston Chronicle
AUSTIN - Gov. Rick Perry said Tuesday he is considering a special legislative session if House and Senate leaders can come to an agreement on public school finance and property tax cuts — something they couldn't do in the regular session.
"The final chapter is not written," Perry said. "There is a very good chance we'll be back here, and hopefully legislators will address it."
Lt. Gov. David Dewhurst said he is eager to start a new round of negotiations next week with Perry and House Speaker Tom Craddick.
"It's not rocket science," he said. "If America can send astronauts to the moon, the Texas Legislature can solve school finance."
Craddick said he's willing to meet but remained pessimistic, saying that the House and Senate are "universes apart" on writing a tax plan to pay for school property tax cuts. "I think we need to look at it," he said.

http://www.chron.com/disp/story.mpl/special/05/legislature/3206299.html



Perry hints he'd deal on schools bill
He might sign a measure with a teacher pay raise but with no relief on property taxes
By R.G. RATCLIFFE and CLAY ROBISON
Copyright 2005 Houston Chronicle Austin Bureau
AUSTIN - Gov. Rick Perry on Monday indicated he would accept a scaled-back school finance bill with a pay raise for teachers and no property tax relief if that is all he can get from the Legislature this summer.
Legislative leaders were reluctant to endorse that approach, although Speaker Tom Craddick admitted the House still didn't have enough votes to increase state taxes, which would be necessary to pay for property tax cuts.
Craddick and Lt. Gov. David Dewhurst also indicated the House and the Senate — after months of wrangling — still had major differences on how to restructure the school finance system.

http://www.chron.com/disp/story.mpl/special/05/legislature/3291821.html



Perry argues Senate's plan will not pass
The proposed business taxes will be difficult to get past the House and the governor
By JANET ELLIOTT and R.G. RATCLIFFE
Copyright 2005 Houston Chronicle Austin Bureau
AUSTIN - The Senate's latest plan to broaden the business tax base could make it more difficult for the House and Senate to agree on a school finance tax bill, a spokesman for Gov. Rick Perry said Friday.
The Senate Finance Committee late Thursday voted 9-5 to pass a bill that links property tax cuts to voter approval of a tax on all business entities, other than sole proprietorships. Under current law, only corporations are taxed, and many of those have used legal loopholes to avoid the franchise tax.

http://www.chron.com/disp/story.mpl/special/05/legislature/3258970.html



Tax bill hits Senate roadblock

Plan to lower property tax, raise sales tax squeaks through House
By R.G. RATCLIFFE and JANET ELLIOTT
Copyright 2005 Houston Chronicle Austin Bureau
AUSTIN - A $7.5 billion bill to cut property taxes with higher consumer taxes squeezed out of the Texas House on Thursday but immediately ran into opposition in the Texas Senate.
The Senate Finance Committee set aside the House plan for a scaled-back property tax cut with the potential for future cuts if voters approve a statewide referendum to authorize a new income tax on business partnerships.

http://www.chron.com/disp/story.mpl/special/crimelab/3257544.html



$1.5 million sought to finish lab probe
Mayor isn't sure city will approve additional funding
By MATT STILES
Copyright 2006 Houston Chronicle
The independent investigator examining past problems at the Houston police crime lab said Monday that he needs $1.5 million to finish his work — a price Mayor Bill White isn't sure the city will pay.
The investigator, Michael Bromwich, told a City Council committee that he needs the extra money to study recommendations for improving the lab's operations.

http://www.chron.com/disp/story.mpl/special/crimelab/3963795.html



HPD lab chemist's error gets case tossed
She realized her testimony was inaccurate and told prosecutors
By DALE LEZON
Copyright 2006 Houston Chronicle
The troubled Houston police crime lab is investigating inaccurate testimony by one of its chemists that led to the abrupt end of a drug possession trial.
Although the mistake forced the dismissal of charges, lab director Irma Rios said it does not signal a return to the problems that led to an ongoing investigation of the lab. She said she doesn't know when her own investigation will be completed.

http://www.chron.com/disp/story.mpl/special/crimelab/3793552.html



More problems found in HPD crime lab cases

By STEVE McVICKER and ROMA KHANNA
Copyright 2006 Houston Chronicle
The special investigator trying to get to the bottom of the Houston Police Department crime laboratory debacle reports today that 43 DNA cases and 50 serology cases dating back to 1980 have now been identified as having "major issues."
Previously, he had identified a total of 45 cases.

http://www.chron.com/disp/story.mpl/special/crimelab/3855792.html



THE LEGISLATURE
Perry's plan to juggle taxes draws criticism
By JANET ELLIOTT and CLAY ROBISON
Copyright 2005 Houston Chronicle Austin Bureau
AUSTIN - The special session on school finance started Tuesday where the regular session left off three weeks ago — with lawmakers miles apart on how to cut local property taxes and fund education.
Gov. Rick Perry outlined a "middle ground" plan that he said would lower local taxes by $7 billion over the next two years and pump additional money into the public schools, but it drew criticism from Lt. Gov. David Dewhurst and Speaker Tom Craddick.
Both leaders, however, promised to work with the governor and with each other to find agreement on a way to overhaul the school finance system, after failing twice during the past year. The most recent failure occurred at the end of the regular session, which adjourned May 30.

http://www.chron.com/disp/story.mpl/special/05/legislature/3235763.html



New Zealand Herald

IWC calls for reduced oil industry impact on whales
12.50pm Tuesday June 20, 2006
FRIGATE BAY, St Kitts and Nevis - The International Whaling Commission (IWC) has called for the oil and gas industry to find ways to reduce the impact of seismic air guns on marine species.
The guns use noise loud enough to cross entire oceans in the search for oil.
The IWC acknowledged that the air guns were a possible threat to whales, dolphins, squid and other species in the world's oceans, and called for more research and for "mitigation" procedures to be developed.
The guns, which are used to map potential oil and gas deposits in the Gulf of Mexico, the North Sea, Australia's Northwest Shelf and elsewhere, were found to damage hearing, migratory patterns and to reduce fish catches.
"The idea that sound-sensitive species can co-exist with this is simply incredible," said Joel Reynolds of the Natural Resources Defence Council, lauding the step taken by the IWC.
He said the noise generated was so explosive that the sound of an air gun used off the coast of California traveled all the way to Asia.
The report and recommendations on air guns from the IWC's scientific committee were unanimously endorsed on Monday local time at the commission's annual meeting in the Caribbean island state of St Kitts and Nevis.
US oil major Exxon Mobil Corp., which is represented at the IWC as a non-governmental organisation, said the images of the subsurface created by seismic surveys were "critical in the search for tomorrow's oil and gas resources."
"We are not aware that these surveys have ever resulted in physical injury or adversely affected any marine mammal population," the company said in a statement distributed in St. Kitts.
But Exxon said that it and other energy companies had set up an US$8 ($13.15) million research programme to investigate the impact of the air guns.

Conservation groups

Meanwhile, conservation groups called on governments to redouble their efforts to save endangered whales after pro-whaling nations led by Japan yesterday won a majority at the meeting for the first time in more than 20 years.
The pro-whaling nations pushed through a statement declaring a 1986 moratorium on commercial whaling unnecessary and blaming whales for depleting fish stocks.
Environmental activists said it should serve as a catalyst to stir US public opinion, in particular, and lead to a counteroffensive by anti-whaling nations at the next IWC meeting in Anchorage, Alaska, next year.
"For those governments that have failed to wake up and smell the coffee, this is the final wake-up call," said Greenpeace International spokesman Mike Townsley.
A coalition of animal welfare groups planned to launch an international campaign called "Save the Whales, Again!" to remind people about the perils that whales and dolphins face, said Jeff Pantukhoff, founder of The Whaleman Foundation.
In addition to scientific whaling, the IWC permits some indigenous communities to hunt a limited number of whales under subsistence whaling permits, including Alaska's Eskimos.
The Eskimos' quota of 41 bowhead whales a year has helped tie Washington's hands to some extent because it needs Japanese support for the quota to be approved.
The quota will be up for renewal again at the 2007 IWC meeting in Anchorage. The United States is also expected to seek a gray whale hunting quota for Washington state's Makaw tribe.
The United States was in a difficult position as "a whaling nation that is anti-whaling," noted Japan's alternate commissioner Joji Morishita.
Conservation groups say they have no intention of challenging aboriginal whaling quotas.
But they said that after the approval of the pro-whaling declaration in St Kitts, it was more important than ever that the United States stand firm against the whaling nations in the run-up to the Anchorage gathering.
" The US cannot cut any deals over the bowhead quota," said Kitty Block of the Humane Society International.
- REUTERS

http://www.nzherald.co.nz/section/story.cfm?c_id=2&ObjectID=10387443



Canterbury prepares for another icy front
5.30pm Tuesday June 20, 2006
Supermarkets around Canterbury have been preparing for another run on stocks, as the snow-covered region braces for a further icy front expected late on Wednesday.
Canterbury emergency planners reactivated alert systems today ahead of a MetService severe weather warning predicting snow down as low as 100m in the afternoon.
Cold southerlies were forecast to sweep north across the province about midday tomorrow, bringing further snow to the already-blanketed Canterbury Plains.
MetService spokesman Bob McDavitt said last week's massive snow dump throughout Canterbury had been followed by southwest fronts that had skirted around the plains.

http://www.nzherald.co.nz/section/story.cfm?c_id=1&ObjectID=10387481



Immigration law review could breach human rights

12.50pm Tuesday June 20, 2006
The Human Rights Commission says some proposed changes to the Immigration Act could breach international treaties.
Concern centres on the possible exclusion of immigrants on health grounds, New Zealand's Chief Human Rights Commissioner Rosslyn Noonan said today.
He told National Radio: "It's very clear that the international covenant on civil and political rights require states not to discriminate on a number of bases; race, ethnic origin, social status and so on and the New Zealand Bill of Rights Act itself has a very strong anti-discrimination provision which includes non discrimination on the basis of ability."
In its submission, the commission lists several areas of concern about the immigration review paper.

http://www.nzherald.co.nz/section/story.cfm?c_id=1&objectid=10387434



EU rivals 'focusing on non-tariff trade barriers'
4.00pm Tuesday June 20, 2006
Farmers can expect to face new competitive pressures as trade rivals in the northern hemisphere are forced to reduce subsidies and tariffs, Agriculture Minister Jim Anderton has said.
"We know Europe's history of protectionism," he told meat and wool farmers in Wellington today.
"As the pressure grows on them to get rid of direct subsidies, creative new replacements are being found."
One focus in Europe was on the "food miles" involved in shipping produce to consumers, and Mr Anderton said talk about the carbon emissions from shipping produce around the world was directly targeting the shipments from New Zealand.

http://www.nzherald.co.nz/section/story.cfm?c_id=3&ObjectID=10387474



Crisis meetings at Airbus
1.00pm Tuesday June 20, 2006
The four bosses of Airbus parent EADS met for closed-door talks today, days after the European group was hit by costly new delays to the A380 superjumbo and questions about stock sales beforehand, the Associated Press (AP) reported.
The meeting came amid growing pressure on Noel Forgeard, the company's French co-chief executive, who made a 2.5 million euro ($5 million) profit exercising stock options in March - weeks before management ordered an internal assessment of the production hitches.
Investors wiped more than 5 billion euro off the company's market value on Wednesday after it announced a further seven-month delay to the superjumbo.

http://www.nzherald.co.nz/section/story.cfm?c_id=3&objectid=10387451



Deadly prison riot ends in Brazil
12.50pm Tuesday June 20, 2006
RIO DE JANEIRO - At least two inmates died and one of the bodies was beheaded in a three-day prison riot in Brazil that ended on Monday with the release of more than 250 hostages, security officials said.
A spokeswoman for the Espirito Santo state security secretariat said authorities negotiated the release of the hostages without giving in to the demands of the riot leaders in the Viana maximum-security prison. It was the third prison riot in the state in the past few days.
The prisoners demanded that drug-gang kingpins, who are isolated in a federal police detention centre, be transferred back to the prisons where they were initially sent to serve their sentences.
"There was no pact, no conditions were met," said the spokeswoman. Eighty troops from the National Public Security Force also arrived in the state to help contain prison rebellions, she added.

http://www.nzherald.co.nz/section/story.cfm?c_id=2&objectid=10387435



Australian stocks: Miners, banks drag shares lower
10.20pm Tuesday June 20, 2006
Australian stocks fell for a second consecutive day on Tuesday, losing 0.8 per cent as miner BHP Billiton dropped on weaker commodity prices, while National Australia Bank was hit by concerns credit growth might slow.
The benchmark S&P/ASX 200 Index closed down 39.8 points at 4,861.4, according to the latest available data. The index is now about 10.1 per cent below its May 10 peak.
"You are in environment of rising interest rates. At this stage we don't think it's enough to kill off the commodity boom," said Eric Betts, equities strategist at Nomura Australia.
"But people will get concerned that the monetary authorities will overkill. So this period of volatile commodity prices looks like it will persist in the short-term at least."

http://www.nzherald.co.nz/section/story.cfm?c_id=3&ObjectID=10387557



US National Guard to fight New Orleans crime
4.25pm Tuesday June 20, 2006
By Peter Henderson
NEW ORLEANS - National Guard troops and state police are being deployed to New Orleans to fight rising violence after five teenagers were shot and killed, Louisiana State Governor Kathleen Blanco has said.
The brutal pre-dawn shooting on Saturday was one of the most deadly attacks in the history of New Orleans and raised fear among residents that crime is returning before the city can completely recover from the devastation of Hurricane Katrina.
"The situation is urgent and we will accelerate our plans to deploy law enforcement to the city tomorrow," Blanco said in a statement after Mayor Ray Nagin and the city council called for reinforcements for city police.
"We will respond with personnel from the State Police and National Guard," she said, adding that 300 National Guard troops and 60 state police would start arriving on Tuesday local time.

http://www.nzherald.co.nz/section/story.cfm?c_id=2&ObjectID=10387477



Apple in talks with Hollywood over film downloads for iTunes
Tuesday June 20, 2006
By Stephen Foley
NEW YORK - Apple's chairman Steve Jobs is heading for another showdown with the media industry over plans to start selling film downloads at the company's iTunes online store.
The big Hollywood studios are resisting Mr Jobs' plan to sell feature-length films at a flat rate of US$9.99 and are refusing to license any content to iTunes unless he agrees to flexible pricing.
The studios want consumers to pay twice that amount for new releases fresh out the cinema.
Apple is gearing up for the launch of a new generation of video iPods in the northern autumn, according to rumours swirling through the industry, and Mr Jobs is said to want to launch films on iTunes at the same time.
A New Zealand iTunes online store is yet to be launched.

http://www.nzherald.co.nz/section/story.cfm?c_id=5&ObjectID=10387433



Palestinian factions near agreement on manifesto

1.45pm Tuesday June 20, 2006
GAZA - Palestinian factions neared a deal on Tuesday on a political platform that might avoid a referendum showdown between Palestinian President Mahmoud Abbas and the Hamas-led government, officials said.
Tensions have escalated between Abbas' Fatah movement and Hamas since the president called a referendum for July 26 on a platform for statehood that implicitly recognises Israel. Some fear their violent power struggle could lead to civil war.
But after four hours of talks early on Tuesday in Gaza, spokesmen for both Hamas and Fatah were optimistic an agreement was within reach on a manifesto drawn up by Palestinian prisoners in Israeli jails.
"An agreement has become a done deal. There is no big difference over the remaining points," Hamas spokesman Sami Abu-Zuhri said.

http://www.nzherald.co.nz/section/story.cfm?c_id=2&ObjectID=10387454



Mexican presidential rival 'will not cause trouble' if defeated

12.20pm Tuesday June 20, 2006
MEXICO CITY- Mexico's leftist candidate would not stir up trouble on the streets if he is narrowly defeated in a presidential election, but would fight any vote fraud in the courts, a top campaign aide has said.
Investors worry that Andres Manuel Lopez Obrador, a former Indian welfare officer, could summon supporters to into the streets if he loses the July 2 election, causing political gridlock and perhaps violence that would roil financial markets.
But Ricardo Monreal, one of Lopez Obrador's top campaign aides, said the left would steer clear of rabble-rousing.
"We will not shut down or occupy offices, cause chaos or problems," he said in an interview. "We will go to the courts."

http://www.nzherald.co.nz/section/story.cfm?c_id=2&objectid=10387444



US state to vote on abortion ban
10.20am Tuesday June 20, 2006
KANSAS CITY - South Dakotans will vote in November on the fate of a new state law, one of the most restrictive anti-abortion measures in the United States, banning the procedure even for women made pregnant by rape or incest.
Abortion rights supporters have gathered enough signatures to let voters decide whether South Dakota should keep or reject the measure, crafted by conservative state lawmakers to give the US Supreme Court a platform for overturning the 1973 Roe v. Wade ruling that legalised abortion.
South Dakota Secretary of State Chris Nelson certified on Monday that the required 16,728 signatures had been gathered and the repeal initiative would appear on the ballot.
"We will encourage all South Dakotans to join us in repealing this extreme law that has embroiled our state in controversy and threatens our government with million dollar lawsuits," said Jan Nicolay, who led the petition drive for the South Dakota Campaign for Healthy Families.

http://www.nzherald.co.nz/section/story.cfm?c_id=2&ObjectID=10387418



Benefits of IVF treatment outweigh costs, study says
2.20pm Tuesday June 20, 2006
PRAGUE - The benefits of providing free fertility treatments to couples in Britain could far outweigh the costs to the government, according to new research reported on Tuesday.
Professor William Ledger, a fertility expert at the University of Sheffield in England, looked at the average cost of producing a baby through in-vitro fertilisation and the benefit to the government over the person's lifetime.
He and a group of mathematicians and economists used a modelling exercise and calculated that for the average £13,000 ($39,393.93) it costs to produce a child through in-vitro fertilisation (IVF) the government would recoup £143,000 in taxes alone.
"Helping people with infertility have children is not just a benefit to themselves and their families but also to society," he told a news conference.
"Overall there is a huge net positive benefit to society over that child's lifetime," he added.

http://www.nzherald.co.nz/section/story.cfm?c_id=2&objectid=10387459



First female Episcopal bishop
6.20am Tuesday June 20, 2006
The Episcopal Church has elected Nevada Bishop Katharine Jefferts Schori as the first female chief pastor of the denomination and the first female leader in the history of the Anglican Communion. Only two other Anglican provinces - New Zealand and Canada - have female bishops.
The presiding bishop represents the Church in meetings with other Anglican leaders and with leaders of other religious groups.

http://www.nzherald.co.nz/section/story.cfm?c_id=2&ObjectID=10387362



Ancient Silk Road revived

Tuesday June 20, 2006
BEIJING - China and India have agreed to reopen border trade at the historic Nathu-la pass after more than 40 years, a symbol of rapprochement between Asian giants who fought a Himalayan war in 1962.
The pass, at an altitude of around 4300m, will open on July 6, China's Xinhua news agency reported, and handle trade between the tiny northernmost Indian state of Sikkim and southern Tibet. "The reopening of border trade will help end economic isolation in this area," Tibet Vice-Chairman Hao Peng said.
The agreement to reopen the ancient Silk Road route was the latest sign of warming relations. China now recognises Sikkim, a former Buddhist kingdom, as part of Indian territory, and although much of their 3500km border remains in dispute, last year they agreed to settle the issue politically.

http://www.nzherald.co.nz/section/story.cfm?c_id=2&ObjectID=10387324



American philanthropy on a natural high
7.20am Tuesday June 20, 2006
Three major natural disasters - the tsunami in Asia, earthquake in Pakistan and hurricanes Rita, Katrina and Wilma - drove up American philanthropy.
The Giving USA foundation estimates that in 2005 Americans gave US$260.28 billion ($426.96 billion), an increase of 6.1 per cent, and the highest figure since 2000.

http://www.nzherald.co.nz/section/story.cfm?c_id=2&ObjectID=10387363



Phoney Chinese army general gets life for fraud
4.30pmTuesday June 20, 2006
BEIJING - A bogus Chinese army general who swindled 27 million yuan ($5.54 million) from a company has been jailed for life by a court in Beijing, a newspaper reported.
In 2002, Dong Kunlun, 58, duped China Xinyi Group into signing a contract with a fictitious army company for the sale of "large amounts of military supplies", the Beijing News reported.
During business discussions, Dong wore a general's uniform, drove a luxury car with military number plates and travelled with two bogus security guards, the paper quoted a company vice-president surnamed Zhao as saying.
The company never had any suspicions, Zhao said.
Dong, who had previously been jailed for fraud in 1998, had spent 17.31 million yuan of the company's money, the paper said, buying six houses, three cars and settling millions in debts.


http://www.nzherald.co.nz/section/story.cfm?c_id=2&ObjectID=10387478

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