October 31, 2005
Top 10 China blogs and firewall trick

As part of the China Blog List project, John asked me to list my top 10 China blogs. It wasn't easy narrowing it down to ten, but 10 I did. Check out the list at China Blog List's Recommended page, and then come back here to tell me why I'm wrong and what I left out.

On a related note, I got the following email today:

Chinese users of the latest version of the popular Firefox [1] extension CustomizeGoogle [2] are happy. A new feature [3] modifies the Google Cache urls so that they are no longer blocked by the Chinese firewall.

[1] http://www.getfirefox.com
[2] http://www.customizegoogle.com
[3] http://www.customizegoogle.com/Changes

I've no idea if this works, but if any China users try it let me know.

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[boomerang] Posted by Simon at 17:13
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Daily linklets October 31st

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[boomerang] Posted by Simon at 14:45
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Grow West

If China's West had received a yuan for every word written about the growing income gap between the interior rural poor and their richer coastal urban dwelling cousins, there wouldn't be a gap. The SCMP notes a report that incomes are rising in China's West, just not as quickly as on the coast (chart below the jump):

The wealth gap between the nation's east and west has widened in the five years since an ambitious strategy to close the economic divide was introduced, according to a study by the Xian-based Northwest University.

Although the researchers found the west was growing richer and people were better off, one academic who took part in the study said the push to develop its natural resources had instead profited the east. He suggested that altering the tax system would better address the imbalance..."Some people think it's not reasonable to support the west, because from a purely economic perspective the rewards for investment are higher in the east than in the west," he said. "But developing the west will be beneficial to the stability of the entire nation and could create a big market for east and central China, which will eventually affect their development."

But Professor Zhang, who heads the Shaanxi Academy of Social Sciences' economics institute said it was not fair for the east and west to compete directly in the market. "It's like having men and women competing in the same event, which is not fair," he said. "To develop the west under the market economy system, a pro-west market must be established."

Yes, Communist China's rich are getting richer and poor are getting richer, just not as quickly. I like Professor Zhang's analogy. One could also compare the East-West gap with the East Asia Games, which seems to be a giant waste of time for everybody involved despite grandiose white elephants infrastructure projects, where the talented, skillful, bigger and better athletes are dominating the competition.

eastwestgap.jpg



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[boomerang] Posted by Simon at 09:57
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Scotching rumours, hot and cold

A few stories to start off the week on a gentle note:

1. Sales of scotch are going through the roof thanks to a Chinese fad for combining scotch with green tea. I suppose if you combine two digusting potions you could possibly end up with something less vile, but I doubt it.

2. Hong Kong's Government takes on the art of spin...and fails. The official spin is that Washington is full of lavish praise for Donald Tsang's political "reforms". It's not like Dick Cheney's chief of staff quit on Friday or anything when "he reacted very favourably, very positively" according to the Don. The Washington Post instead reports on "Broken pledges in Hong Kong". Meanwhile today the HK Government tells us Tsang's North American trip dispels misunderstandings. Tsang has even engaged in role-playing:

Mr Tsang said he had done a lot of soul-searching, and put himself in the position of a lawmaker who may oppose the political reform proposals. On reflection he could not find any rational reason why a lawmaker should reject the recommendations of the reform package.
While Tsang was chanelling, the pro-democracy legislators were marching. Can they feel the force?

3. The Standard reports (no link) that divorce rates are shooting through the roof in Harbin, even though couples remain living with each other. Why? Because female teachers are being denied heating allowances if married as their husbands already receive it. Who says you can't put a price on love?

4. Bought shares in CCB? Below the jump is The Economist's comprehensive review of China's banking reforms (reg. req'd) and the giant gamble the government is taking. To repeat the conclusions (but read the whole thing):

China is gambling on going it alone. By rushing poorly reformed banks to market and sucking in a bit of money and know-how (not to mention greater scrutiny) from foreign investors, it hopes to improve them sufficiently and sufficiently rapidly before the economy runs into a headwind. The size of that gamble should not be underestimated.

A great big banking gamble

IT IS a staggering thought: communist China now has a bank more valuable than Barclays, American Express or Deutsche Bank, financial institutions at the heart of Western capitalism. At more than $66 billion following its initial public offering in Hong Kong on October 27th, China Construction Bank (CCB) boasts a larger market capitalisation than any of these three. CCB's listing, which raised $8 billion from foreign investors for 12% of its shares, is the largest global flotation for four years, China's biggest and the biggest ever for a bank. CCB garnered another $4 billion ahead of its float by selling stakes of 9% to Bank of America and 5.1% to Temasek, Singapore's investment agency.

This is quite a transformation for a bank that was technically insolvent less than two years ago and which, despite a hastily applied commercial gloss, is still a government agency, plagued by bad debts and corruption so pervasive that just five months ago its then chairman was arrested for bribery. In private, China's leaders must be marvelling that they have pulled off this sale. Yet their ambitions are far greater. Bank of China (BOC), the second of the “Big Four” state banks, with foreign investors already aboard, is planning a $5 billion foreign listing in early 2006. Industrial and Commercial Bank of China (ICBC), the biggest, is appointing advisers for a $10 billion flotation late next year or in 2007. Many of the smaller joint-stock and city banks now too have foreign investors and are eyeing overseas listings.

Beijing is encouraging this rush to market as the most fundamental step in reforming the economy since Deng Xiaoping opened China to the world in the late 1970s. Since then, the country's banks have been almost wholly responsible for channelling the population's sky-high savings into industry and investment. Given China's failure to develop healthy stock and bond markets, bank assets have ballooned to almost 30 trillion yuan ($3.7 trillion) in 2004, or 210% of gross domestic product (GDP). That is the highest of any big economy, says Nicholas Lardy at the Institute for International Economics in Washington, DC: India is at 170%, Brazil 160% and Mexico 100%.

Sadly the banks have been disastrous middlemen, lending on government instruction without a view to their profits. They have poured money into wasteful infrastructure projects and kept broken state-owned enterprises (SOEs) afloat. Not only has this created huge non-performing loans for the banks themselves, but also because China's investment is so unproductive, it has to shovel ever more money into its economy to maintain its current growth. Already, China needs almost $5 of fresh capital to generate $1 of incremental output, a far worse ratio than Western countries and even India. In the first quarter of 2005, fixed-asset investment reached an incredible 54% of GDP, 10 percentage points above the household savings rate. No country can sustainably invest more than it saves and China must raise the productivity of its economy.

That is why overhauling its banks is so critical to securing the country's future growth. China's political leaders have an iron commitment to bank reform—a commitment backed with cash. Since 1998, Beijing has injected more than $260 billion into its banks via straight handouts and by allowing the Big Four to shift dud loans into separate state-backed companies. This is about twice what South Korea spent to restructure its banks after the 1997-98 Asian crisis and about what America needed to bail out its savings & loans industry. Mindful of the long paralysis of Japan's indebted financial system, China is pumping in funds before a financial meltdown. Weijian Shan, a director at Newbridge Capital, a private-equity firm which owns a controlling 18% stake in Shenzhen Development Bank (SDB), is impressed: “the government is taking the pain before it is too late, showing it understands that China's economic development depends on a healthy banking system.”

Beijing realises too that money alone will not do the trick. Since 1998 it has raised accounting, prudential and regulatory standards. Before then, the banks could book interest income for up to three years even if it was not being paid; now they can do so for only 90 days—the international norm. In 2002, the old lenient system whereby banks provisioned just 1% of their loans regardless of risk, was replaced by a five-tier classification tying the size of the provision to loan quality. Meanwhile, the central bank's decision last October effectively to lift the ceiling on commercial loan rates should, in theory, allow banks to charge more to riskier borrowers.

The biggest change, though, has been the creation of a central regulator, the China Banking Regulatory Commission (CBRC), carved out of the central bank in 2003. Headed by Liu Mingkang, a respected former president of BOC, the regulator is trying to shift the banks' focus from mindless loan and deposit growth to preserving adequate capital and generating decent returns on it. Lenders that do not meet a capital ratio of 8% of risk-weighted assets (as decreed by Basel I, a global standard) by 2007 face sanctions—including the removal of senior management. The regulator's 20,000 staff are trying hard to ensure compliance. “At every board meeting, the CBRC guy is right there taking notes and pounding the table,” says Stephen Harner, a former diplomat who now sits as an independent director at Hangzhou City Commercial Bank.

The rush for reform
All this has given an urgency to reform efforts. Almost all China's 128 commercial banks have introduced better governance, shareholding and incentive structures, and have added independent directors to their boards. Senior managers are investing in new risk systems and trying to change bad old habits such as having the same person make and approve a loan, a practice that encourages corruption.

The restructuring has been helped by a benign environment. China's economic boom fuelled annual loan growth of almost 16% over the past four years and deposit growth of 18% a year. Lending to consumers, which started only in 1997, has exploded, increasing 123 times to more than 2 trillion yuan ($250 billion) in seven years, says Merrill Lynch, an investment bank. Corporate loans still dominate, but mortgages, car and education loans now make up 11% of the total and 26% of new lending, says Mr Lardy (see chart 1).

Strong revenue growth and offloading bad debts on to the government has inflated bank profitability. Last year, China's 13 biggest banks made net profits of 90 billion yuan ($11 billion) and a decent-looking return on equity (ROE) of almost 11%, says Fitch, a credit-ratings agency. Over half came from CCB, the sector's poster child, which expects net profits of 42 billion yuan ($5.2 billion) for 2005. Though it is only the third-largest lender, aggressive management, leadership in mortgages and the number two position in debit and credit cards have helped it achieve an industry-leading ROE of over 25%.

Meanwhile, the headline non-performing-loan ratio reported by the CBRC fell to 8.8% of total loans by this June, down by half since the end of 2003. CCB looks much cleaner, with a ratio of 3.91%. It has stronger reserves, with loan-loss provisions of 64% of its bad loans compared with 15% average for its peers. Its listing prospectus says that loans to “new” customers (acquired since 2000) are one-third as likely to go sour as those to older clients, suggesting regulations are working. On this basis, CCB looks only a bit worse than developed-world banks.

Well, it would, if that were indeed the true picture. Independent estimates put bad debts at 20-25%, far exceeding official figures. The CBRC itself paints an alarming picture. In an internal report leaked to Shenzhen's Securities Times, the CBRC found system-wide bad loans actually rose this year, if a disposal from ICBC was excluded. It expects 30 billion yuan in new bad loans in 2005. And on October 14th having inspected 11 banks, the CBRC concluded that it is “common practice” for banks to ignore regulations and fail to monitor loans, and that bad-loan levels are “not accurately revealed”. Poor accounting means that the banks themselves are unsure of their bad loans. Others do not tell. Lai Xiaomin, head of the CBRC's Beijing office, admits that “when our banks disclose information, they don't always do so in a totally honest manner.”

That bad loans are rising, not falling—Fitch estimates by 8% in the first half of 2005 once government-funded write-offs are excluded—is not surprising. China's banks went on a lending binge between 2003 and 2004, partly to “grow out of” their bad loan problem. Many loans will go sour, as Beijing has moved to curb overheated sectors such as steel, cars and property. If economic growth slows, a new wave of bad loans will hit. In addition, banks carry alarmingly high levels of “special mention” loans, ranked as performing but where a borrower's circumstances have worsened. Even at CCB, these are 14% of the total.

Look at the books
A new surge in bad debts would be bad enough if Chinese banks had the earnings power to absorb them, but they do not. Behind the headline numbers, their basic profitability is very poor. An average net interest margin of 2.36% looks decent compared with the 1.5-2.5% in developed markets. But David Marshall, head of Asian financial institutions at Fitch, argues that Chinese banks need far wider margins to cover the risks typical of an emerging economy. Indonesian banks, for example, boast a 5% net interest margin and Indian banks 3.45%. Meanwhile, Chinese banks are too dependent on loan income. More stable income from commissions and credit-card fees is only 13% of total revenues, half the level at Indian banks and just one-third of Thailand's. And while costs at Chinese banks are low, at 45% of revenues, this reflects poor investment in training and IT, not better efficiency.

Put all of these factors together and the return on assets (ROA) generated by China's banks, at less than 0.5% last year, is the worst in Asia (see chart 2). Granted, they look better measured by ROE, but this too is deceptive. The excellent 25% CCB highlights in its prospectus is really 17% after adjusting for a tax break. More crucially, the sector's 11% reflects inadequate levels of equity (in other words, capital) rather than high returns. The industry has a capital-adequacy ratio of barely 8%. Mr Marshall argues that China's banks should be carrying capital of at least 15-20%, as banks in Indonesia do, to guard against unforeseen risk. If they did, their ROEs would drop to 5% or less—a much truer reflection of their innate level of profitability.

Two sobering conclusions follow. The first is that even a tiny deterioration in business conditions that either reduces margins or increases bad loans would wipe out earnings at China's banks. The second is that even if the economy remains good, the banks cannot generate enough internal capital to support their current levels of loan growth. Ryan Tsang at Standard & Poor's, a credit-ratings agency, estimates that to avoid more capital injections the banks have to generate an average ROA of 2.1%, almost five times current levels.

Clueless lenders
To close that gap will take a fundamental transformation of how Chinese banks operate. The banks simply do not understand how to price risk or spot a dodgy borrower. Neither flexible interest rates nor loan classifications can help if credit officers cannot tell good loans from bad. The current boom has led loan officers to believe the value of collateral always goes up.

The real battle for bank reform will be won or lost in the branches. While reforms have changed much at head offices, they are hard to enforce elsewhere. Guo Shuqing, CCB's new chairman, admitted shortly after he got the job, that “more than 90% of the bank's risk managers are unqualified”—a bold statement from a man wanting to list his company.

These are massive organisations to turn around, after all. CCB alone has 14,250 branches and 304,000 employees. Their historic decentralisation makes them especially hard to control. In a book to be published in November, Wu Jinglian, China's most respected economist, notes that until a decade ago provincial branches of commercial banks borrowed funds directly from provincial offices of the central bank and lent them to local customers. They enjoyed “legal person status” and did not require authorisation from head office. Even today, big branches of ICBC have their own English-language websites—emphasising their independence. “Branch managers are kings in China,” concurs Frank Newman, an American who took over as chairman of SDB on behalf of Newbridge earlier this year.

At all banks there is a struggle between head office, which wants to centralise processes, and local staff who are in thrall to the demands of local officials and industrialists and who disobey their branch managers on whom they depend for their promotions at their peril. Unhelpfully, the branches are being monitored by a regulator that faces the same problems as its charges—too many unqualified staff spread too thinly. Han Mingzhi, head of the CBRC's international department freely admits, “we lack people who understand commercial banking and microeconomics. It is a headache for the CBRC.” The result is that it will take China's banks years to establish proper corporate governance, a genuinely commercial culture and hence decent profitability.

Meanwhile, strategic foreign investors are supposed to bridge the gap—with money, but especially with skills in risk management and advanced financial products. The lure of China's high growth and huge population has triggered an astonishing stampede, attracting some $18 billion in foreign direct investment in China's banks in one year. The first big deal was the $1.7 billion HSBC paid for a 19.9% stake in Bank of Communications (BoCom), the fifth-largest lender. Then came CCB. Since then, a consortium led by the Royal Bank of Scotland has put $3.1 billion into BOC, Temasek another $3.1 billion and Switzerland's UBS $500m, while Goldman Sachs and Germany's Allianz are investing in ICBC. Only Agricultural Bank, the Big Four bank with the deepest problems, has failed to attract a Western investor.

In return, the international banks get a cut-price entry ticket: Bank of America paid 1.15 times book value for its stake in CCB, which has now floated at almost twice book. They also gain access to a branch network and client list they could never afford to replicate, even after World Trade Organisation rules force China to open its domestic banking market fully from end-2006. Every deal is thus accompanied by a joint-venture in savings and insurance products and, of course, credit cards—the Chinese financial market that has every foreign investor salivating.

Only 12m of the 880m bank cards in China are genuine credit cards. So McKinsey, a management consultancy, predicts exponential growth from this segment, and profits of $1.6 billion by 2013. Yet McKinsey also notes that half of existing accounts are unprofitable. Chinese pay their bills in full each month, show little loyalty to brands and are unimpressed by foreign-backed offers. Ron Logan, head of HSBC's credit-card venture with BoCom, says acquisition costs are soaring as competition heats up, with everything from DVD players and holidays used to entice customers, further eroding profits. Jean-Jacques Santini of BNP Paribas, which just bought one-fifth of Nanjing City Bank, warns investors: “expect to lose money on credit cards for the first three or four years.” The only way for investors to make decent returns in the short term is by betting on a big rise in post-IPO share prices. Everything else they take on trust.

A very Chinese welcome
Meanwhile, given limited ownership rules, foreign banks can have only a modest influence on strategy or operations at their Chinese partners. Newbridge is an exception since it has won genuine management control of SDB, which is small and has a widely dispersed ownership. HSBC's vastly greater size compared with BoCom, means it might, in time, have a significant say. The rest are restricted to one or two board members each, while the appointment of senior management remains with the Communist Party. “Can China's banks be fully reformed while staying under government control? I doubt it,” says Mr Marshall.

To reform its banks properly, China must allow foreign takeovers. And its banks must be allowed to merge and fail. Yet even if Beijing raises cumulative foreign-ownership limits above the current 25% next year, as the CBRC expects, it is unlikely to relinquish control of a major bank. Worryingly, the CBRC seems ambivalent about foreign participation. Mr Han says he doubts the wisdom of raising the ceiling on foreign investment “if we don't get something in return”. Yet as banks in Poland and the Czech Republic discovered, preventing foreign takeovers simply delays bank reform and means more costly bail-outs. A stockmarket listing cannot really help while the state remains in charge: minority investors can do little to change poor corporate governance or influence strategy.

Instead, China is gambling on going it alone. By rushing poorly reformed banks to market and sucking in a bit of money and know-how (not to mention greater scrutiny) from foreign investors, it hopes to improve them sufficiently and sufficiently rapidly before the economy runs into a headwind. The size of that gamble should not be underestimated.




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[boomerang] Posted by Simon at 08:51
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Liao's Hydrogen Bomb

Over the weekend, I mused on how unfortunate it was that legalized gambling brokers like Ladbrokes or Paddy Power did not exist in Hong Kong. Because if you follow sports leagues in any European country, one of their favorite bets is which manager in the league will be the next to get sacked. The Hong Kong Jockey Club would never countenance this, of course, but I would love to be able to bet on which 'minister' of Donald Tsang's cabinet under the 'accountability' system will be the next to get fired.

Speaking of fired, let's turn now to the wonderful subject of coal-fired electricity plants in our midst thanks to China Light and Power. My money on the next sacking would be on Sarah Liao (can be re-arranged to spell: ALO ASH AIR), who appears, during her tenure as the environment chief, to have overseen the worst increase in pollution experienced by any developed city, anywhere, ever. Shout it after me: HONG KONG'S AIR IS A DISGRACE AND AN ENVIRONMENTAL DISASTER. And despite her attempts to say otherwise, a great deal of it is generated locally.

What is her solution to Hong Kong's smog problem? Hydrogen cell cars, according to this article in the Standard. Unfortunately, hydrogen fuel cell cars are about two decades away from viability. This, by the way, is the same woman that claimed that the pollution would get better this year thanks to new scrubbers installed in Guangdong factories.

It appears that perhaps in her haste to find the culprit in the room, Ms. Liao is ignoring the huge bloody dinosaur in the corner. Given that we, the Hong Kong tax- and bill-payers are spotting the local power companies a guaranteed 15% profit margin, it seems the least they could be compelled to do by the government is to move their electricity generating plants to less polluting fuels. Hong Kong's population is paying their bills, and the power generators are killing them in return.

Methinks in response to that, Ms. Liao might propose some cold fusion plants - still, sadly not expected to make it off the drawing board for the next century.

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[boomerang] Posted by HK Dave at 08:05
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October 30, 2005
About Me

I've been sent new questions for the "About Me" section. As such I've included it at the bottom of this post and moved this post up to today. Otherwise it is as it was.

This is a new About Me section. And it requires your help. This is going to work on a question and answer basis, a multilogue if you like. Place any question about me you would like either in the comments to this post (they've been re-opened) or by email to simon[at]simonworld[dot]mu[dot] nu titled About Me. I will place the question and answer in this post with a link or mention of the questionner (unless you request anonymity).

*****************************************
Jim has lead the way:
Q: Why do you live in Hong Kong?
A: I got here because of a transfer via work. And people say that multinationals are bad! I was happy to move - 15% tax rate instead of Australia's 48%, no sales tax, no capital gains tax, on the doorstep of one of the most interesting places in the world (China), world-class city, more Ferraris than you can poke a stick at, family-friendly, the luxury of a helper...plenty of reasons. It's a great place to visit and an even better place to live. Plus it is thousands of miles from family. I love 'em and all, but a bit of distance is nice. We're making it in the world on our own.

Q: Do you like it better than Australia?
A: Australia will always be "home". This is just our temporary abode. The two places are so different it is hard to compare. But all Aussies I know one day want to go home.

Q: Have you ever played cricket?
A: I challenge you to find any Australian, male or female, who hasn't played cricket at least once. I'd wager even Pixy played once. You actually can't be an Australian citizen unless you have played cricket.

Q: Did you like it?
A: Yes. Because I was good. Still am. Used to beat my brother in the backyard version with monotonous regularity. Of course he'll dispute that, but he cheated anyway.

Q: If you could have 100 readers or 100 dollars which one would you choose?
A: This is obviously a trick question. I'd take the $100 and give $1 to each of those 100 readers. The blogosphere is a cheap place.

Q: Is your wife sexier when she's got a bun in the oven?
A: She's even sexier when she's pregnant! (That's a joke. You see bun in the oven is an idiom...oh, never mind).

Pylorns of the extremely well designed Wetwired asks:
Q: So are there many single women in Hong Kong you could hook me up with if I visited?
A: Strictly speaking, this is not About Me. Nevertheless it is something I know about. The answer is no and yes. There are single women in HK, but the number of single men is greater. However, most of the single men are either morons, ugly, rude or a combination of all three. This means any single man who is reasonably intelligent, reasonably presentable and reasonably polite can make a killing in the HK singles market. It is the origin of the saying "Shooting fish in the barrel."

Jim, who has sorted out his aggregator, asks:

Q: How long do you expect to be in HK?
A: Either until the tax rate rises above Australia's, the Communists expel me or until my mother and mother-in-law forcibly bring the grandchildren back to Oz. Or a few more years, whichever comes first.

Q: Do you have any concerns about raising your kids there (HK) rather than Australia?
A: When JC starts singing "The Internationale" I'll panic. It's a good experience for the kids to grow up in somewhere like HK, giving them a taste of the wider world early in life. And it'll come in handy when we go to eat Chinese back in Oz.

Q: Would you rather read the book or watch the movie that's based on it?
A: It depends if it's porn.

Pieman asks: Any fave HK restaurants/pubs 'n' clubs?
A: Yes. Lucy's at Stanley is a favourite restaurant but Hong Kong is blessed with many great places to eat, even if the service can be patchy. There is a wide varierty of food to meet every budget...and now I'm sounding like Tourism Hong Kong. Seriously food is one thing Hong Kong does well. Pubs there are also plenty in Soho, the Mid-levels, Happy Valley and the like. Favourites? I'm a married man with 3 kids...any pub I can go to is a favourite.

Ilana asks: Do you know how to read Chinese? How did you prepare for your life in Hong Kong? How easy is it for you to speak Chinese and how socially necessary is fluency when socializing?
A: I cannot read Chinese. It's not an easy task and frankly I'm hopeless when it comes to languages. They've got literally thousands of characters and I have trouble remembering what day it is. I can speak very, very basic Cantonese. In Hong Kong being able to speak it for socialising is not that important...if the crowds you move are expats or overseas educated Hong Kongers. English is commonly spoken in these crowds. If you want to speak to locals some understanding of Cantonese will be vital. Also don't forget there is no "Chinese" but rather many different dialects, the main one being Mandarin. They use the same characters but sound completely different.

Finally how did I prepare for my life in Hong Kong? I made sure I am open to new experiences; I read up on the history of the place; I learnt a little of the language; I came and had a look around for a week before we moved here. There's plenty of things you can do but nothing ever really prepares you for any move, to Hong Kong or anywhere else. You need to be adaptable and open to new things and you'll be just fine.

Helen asks:

Q: What movie is the biggest utter waste of time you've ever come across? And what movie still has you thinking about how great it was?
A: To the first part, Farewell My Concubine. It was like listening to fingers on blackboard. It is also the only movie I've walked out on. The second part is harder, but given the current frequency with which I'm viewing it, I'd say Shrek 2. Any movie you can watch 50 times without it turning you into a homicidal maniac must be good.

Q: In your Australian experience, why can't women keep their mouth closed while putting on mascara?
A: They're from a different planet, it says so in the book.

Q: What are you most proud of Australia about?
A: Where to begin? Everything from acacias to vegemite.

Q: What's your favorite childhood memory?
A: She wouldn't want me to say here.

Harry asks:

Q: Who is your favourite Napoleonic General?
A: This is a trick question. It is Admiral Nelson. Killer fact: 2005 is the 200th anniversary of the victory (or loss) at Waterloo, yet Nelson's love for Emma Hamilton, whom he asked to be looked after by the country in his will, was and will be ignored. This is how Brits look after their hero's dying request (not to metion Hardy's non-kiss).

Ragel asks:

Q: Have you ever been to jail? If so, why?
A: Yes, I have. It was a rainy afternoon and in a desperate attempt to prevent two boys from going off the deep end, my mother did the only thing she could and sent us both to jail for a spell. Then she bought both Park Lane and Mayfair, put hotels on both and bankrupted us quick smart.

Q: What, apart from your family, do you miss the most about Oz?
A: Oportos. It's a chain that does Portugese style chicken burgers that are as close to heaven as is possible in a bun.

Q: What is the biggest and funniest misunderstanding you've had in HK? I mean, due to language barriers, a cultural protocol you didn't follow or something like that.
A: It was actually just before we came here, when I said to my wife we were giong to move to Hong Kong. In truth she was great about it, once I picked her up off the floor.

Q: Where else would you like to live?
A: Buckingham Palace.

Q: What is an absolute MUST-SEE or MUST-DO for tourists travelling to HK in your opinion?
A: Certainly the airport would be a good place to start, because you don't get much choice. And you get to see it twice.

Zak has asked where in Oz am I from?
A: Sydney, and more specifically the Eastern Suburbs, and even more specifically Vaucluse and Bondi. Yes, that's right. God's country.

October 25th 2005

Q: Tay Zand says It would be useful if your "about me" page actually contained something substantive about you, like what you do. After all, if you are going to accuse China of fudging its economic data, it would carry significantly more weight if we knew that your opinions and analysis are based on some kind of expertise, rather than just the personal opionion of a random ranter.
A: Not quite a question, but close enough. I work in the finance industry for a multinational investment bank. In particular I am a trader of various financial instruments and derivatives. I have done this for more than 10 years in a variety of financial centres. Prior to that I took both a Bachelors and Masters in Economics, majoring in Actuarial Science, from a major Australian university.

What does this have to do with any of my opinions and arguements? Nothing whatsoever. Quite frankly I'd like each post to stand on its own two feet. My background should be irrelevant to the "weight" or otherwise of my opinions and analysis. But now you know, in case it matters to you.

October 26th, 2005

Q: Pudding asks I notice that you hardly ever link to The Standard anymore. And that in the Kissel trial, you have coverage that did not make it into the final edited version of the The Standard. You also write for The Standard regularly, but I've never seen you openly say that.

Are you preventing anyone from noticing this conflict of interest?
A: I link to articles that I find interesting, want to use as a reference or make a comment on. In general if the SCMP and Standard have similar articles on a topic, I will reference The Standard. There is no deliberate policy of linking to one or the other paper on a regular basis - I link ad hoc.

I had no input into The Standard's coverage of the Kissel trial.

I write op-ed pieces that are published in The Standard. I added the Other Writing link in the left sidebar to a page that lists the articles that have been published. I chose not to make a general announcement out of a combination of modesty and a deliberate decision to not explicitly link the blog with those articles. If people discover the link, that's fine, but I'm not drawing attention to it, which is why I have not mentioned my blog at all in The Standard pieces.

As such I am not preventing anyone from doing anything. I fail to see the perceived "conflict of interest", but with this answer I hope to have dispelled any such perceptions.

Q: Lord Curzon of Coming Anarchy asks what's it like being a banker? Would you recommend it to budding college graduates?
A: I wouldn't recommend anything to budding college graduates. I very much enjoy banking and what I do, which breaks the modern taboo of publicly enjoying your work, but there you go. It's a wide field and in times past people came into the job from all walks of life. These days it seems graduates are coming through very specific finance or business degrees, which gives them a solid theoretical background and demonstrates a keenness on the industry. But to be honest, I learnt more in the first month on the job than I did in four years of university training.

To finally answer your question, it very much depends. If you enjoy finance, economics, stress, living by your wits and mouth, using your brain for long stretches of time and constantly being challenged, then banking is a great career.

Q: Spirit Fingers asks boxers or briefs?
A: I've been "hanging out" since I was 18.

Q: Fumier asks who do you think is the greatest living Australian, apart from Rolf Harris?
A: Me.

October 27th, 2005

Q: Misohoni asks what are you going to do with the blog after you can't be arsed with it?
A: Take the money and run.

October 30th, 2005

Q: Stephen asks what is your real name? What is the most enjoyable part you live in Hong Kong? How do you see Hong Kong's gals?
A: There are enough clues lying around this site as to my full name. I'll leave it as a puzzle for you. The most enjoyable part of living here? There's numerous things - good lifestyle, low tax rate, Asia on your doorstep, great food, good people. As for how I see Hong Kong's gals, that's easy. With my eyes.



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October 28, 2005
Watching the watches

I've been looking for a particular watch to buy and it turns out it's not available in Hong Kong. Impossible, I hear you say, that the watch capital of the world doesn't have it. Crazy that a well known watch company would widely advertise a product you can't purchase. You'd be right, but it's an impossibly crazy world.

Being a new age kind of guy, I turned to my friend Google. And sure enough, it turns out the watch is for sale, online, from a place called Orolus, which is based in Malaysia. It seems to have a good reputation, but this is a not-inconsequential amount of money. Any one used them? Any thoughts? Do we trust e-commerce enough these days?

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Chateau Zhang Lafitte

Some readers of this blog seemed mystified as to why Chinese would want to send Taikonauts into space 40 years after Russia and the US did so, and without the threat of a technology race or a Cold War. This article in the Telegraph seems to show that same tendency mirrored in China's nouveau riche elite. Just look at the self-satisfied smirk of Mr. Zhang Yuchun (via the Telegraph link), who appears to be suffering from some sort of alcohol excess. The French palace Mr. Zhang Yuchun has built for himself in the dusty suburbs of Beijing is modelled on 1642 Chateau Maisons-Lafitte, but he thought the wings were too small and he added two bigger wings based on Fontainebleu, one of the Ancien Regime's summer palaces.

I remember thinking when I visited Versailles and Fontainbleu over a decade ago, that I understood why the French Revolution and the beheadings took place. But now, what is happening in China is completely different. Ever watch one of those movies that happens in reverse, where the baby gets sucked back into the womb, or the messy red paste on the streets miraculously reforms itself into a sack of tomatoes and deposits istelf neatly on a skyscraper window ledge? That seems to be what is happening, in some gross perversion of the Hegelian dialectic - we are going from dictatorship of the proletariat to crass capitalistic binges of the most embarrassing kind.

I can't help but hear Hong Kong's favorite ABBA song in the background: "Money, money, money - it's a rich man's world."

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Daily linklets 28th October

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Closed border caption contest

York Chow Yat-ngok, Hong Kong's health minister, was simply following the mainland's lead when he declared that Hong Kong might shut its borders if there were any hints of human-to-human transmission of bird flu. Obviously The Don spat his cereal at whatever fancy hotel he's staying at in Washington when he heard that, judging from today's SCMP report:

The government is set to backpedal on the pledge by health minister York Chow Yat-ngok that the borders will be sealed if a bird flu pandemic knocks on the door of Hong Kong. This follows what a government source said last night was local and international concern about the enormous social and economic effects of such a move.

It also follows a denial by the Ministry of Health of a statement by Vice-Minister of Health Huang Jiefu , who said earlier China would seal its borders if there was even one case of human-to-human transmission of bird flu...

The Hong Kong government source told the South China Morning Post that instead of sealing the borders completely, officials were now thinking about various "border controls" to stop an outbreak. "We need to tone down this matter a bit. The whole government needs a more thorough discussion on this topic because it is a very complicated issue," the source said.

Apparently a possible widespread pandemic isn't a big enough social and economic consequence on its own. "Local and international concern"? That'd be one hotel room in America's capital and Upper Albert Road.

Reading between the lines can be far more interesting than reading the lines.

And so to the first Bird Flu Caption Contest. Below the jump is the photo the SCMP used to accompany the border closing that wasn't story. Random prizes for the best entries.

A dead bird lies in a field in Wantang village.

birdflupic.jpg



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Wikablog

Tim Worstall has put together the Wikablog. I'll let them describe the idea:

Here at Wikablog, you can, in just a couple of minutes, create a page about your blog or someone else's with a few words saying what it's about. Then other people can add to it. And you can add links to other similar blogs, and talk about the blog's history, and recount the tale of the great Himalayan Blog Controversy of 2002, and whatever else you like. Soon enough, any blog can have a detailed page on here, telling us all everything we could ever need to know about it short of bothering to read it. If you still can't imagine how valuable this service is, slap yourself.
It's a great idea and has the potential to bring order to the chaos that is the blogosphere. I've already setup a page for Simon World, which you are free to go and add to and edit. Just like the China Blog List, these directories and Wikis benefit bloggers and readers immensely. Singaporean Cowboy Caleb has a much edited and soon to be deleted Wikipedia page. Now you can set up a page on a Wiki solely dedicated to blogs. And you needn't be the blogger. Readers can setup pages on their favourite (or most disliked, I suppose) blogs.

Go check out Wikablog and edit or start a page today. (OK Tim, where's my cheque?)

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October 27, 2005
Daily linklets 27th October

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Obligatory China bird flu post

China reports a bird flu outbreak in a village in Hunan province. Today the SCMP reports on the death of a 12 year old girl from that village:

A 12-year old girl has died from flu-like symptoms in a Hunan village where the mainland's third outbreak of bird flu in a week was confirmed. He Yin and her 10-year-old brother fell ill about a week ago at their home in the village, Wantang, after eating a sick chicken that had died, according to their farmer father, He Tieguang . She died soon after reaching the Children's Hospital in the provincial capital, Changsha .

So far there is no evidence linking her death with the outbreak of bird flu in Wantang.
Moral of that story: don't eat sick chickens. And once you've finished stockpiling your Tamiflu, check the used-by date, says the SCMP:
Doctors and pharmacies in Guangzhou have accused Swiss pharmaceutical company Roche of dumping Tamiflu medicine close to the end of its shelf life on the mainland market.

One doctor said he bought his first batch of the drug in August and the medicine had a January 2006 expiry date. A second batch bought last month was good until May and the last batch bought last week had a January 2007 expiry date. "The normal practice is to give us medicine with at least one year of shelf life remaining, but they told me they had no more stocks. They only have 2006 stocks. I think they are clearing old stocks. This is so unethical," he said.

But before you panic, I implore you to read this piece from The Standard, titled Battling an epidemic of fear. It is not 1918. In the words of a famous book: Don't Panic.

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China death penalty reforms

China has long been the capital punishment capital of the world. But it seems years of pressure has brought about modest change. The Supreme People's Court is re-asserting control over meting out capital punishment. The Xinhua article makes interesting and disturbing reading:

The Supreme Court will no longer permit provincial courts to review death sentences so as to ensure that capital punishment is meted out meticulously and fairly, Chief Justice Xiao Yang, also president of the Supreme People's Court, said Tuesday...China still practices capital punishment as a deterrent to preserve social stability, but "as few executions as possible should be carried out and as cautiously as possible, in order to avoid wrongful executions," the top judge said...

According to the law, executions must be approved by the Supreme Court before being carried out. However, to facilitate swift punishment for criminals captured during the country's 1983 "Strike Hard" anti-crime drives, an exception was made so that violent felons like murderers could be put to death with the approval merely of provincial-level "higher people's courts."

Since 2003, the Supreme Court has rejected 7.21 percent of the death sentences, ordering a retrial for lack of sufficient evidence, and changed 22.03 percent of the death verdicts to deathwith reprieval or life imprisonment, said Xiao, without giving the exact number of such sentences.

Meanwhile, provincial courts have thrown out 4.44 percent of death sentence verdicts for lack of sufficient evidence, and revised 38.14 percent of the verdicts to lesser punishments, he said. But several wrongful death sentences exposed this year has prompted legal professionals to think twice about the death penalty system. Many of them are calling for the Supreme Court to rescind provincial tribunals' right of review. A man convicted of murdering his wife in Hubei Province was very lucky when his "dead" wife emerged. The case prompted a national uproar...

Liu Zuoxiang, an professor with the Law Institute of China Academy of Social Sciences, told Xinhua the major problem with thereviewing system is that different provincial courts have different criteria on what kind of felons should be executed, which is not good for the human rights of the convicted.

While these changes are welcome, the implications are staggering. First and foremost, the implication is there have been potentially many executions in the past that were unjustified. Secondly, the rush to execution of violent criminals has meant the law has been flouted since 1983. So this measure can be seen as a re-assertion of rule of law in China. Or it could be seen as wayward provincial courts being smacked down by the Supreme Court.

Either way, it's a positive step forward. It's a shame so many have had to die to get there.

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Do divorcees celebrate anniversaries?

Suppose you had been married to someone. Then she was whisked off her feet by a Japanese man. She grudgingly came back to you, decades later. But then, only for a couple of years - she then is forcibly taken away by your worst enemy, who happens to be your twin brother. She at first still believes that she will be reunited with you one day, but that belief gradually dissipates and she sometimes now believes that she never had anything to do with you in the first place.

Should you, 60 years later, still celebrate her brief return from that Japanese man 60 years ago? China definitely thinks so in the case of Taiwan. Please go to the link I have just provided, if nothing else for an eye-opening display of girls in banana skirts, bubbleheads and fellows in traditional costumes that go to show that the mainland choreographers seem to understand as much about modern Taiwan as a redneck from Iowa. Nevertheless, this display shows how China intends on keeping up the pressure on Taiwan for a resolution of its sovereignty in a way that is acceptable to the mainland.

As they say, all is fair in love and war...and with China and Taiwan, as always, it 's a schizophrenic mixture of both.

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October 26, 2005
Singapore freedom

Another compare and contrast exercise with two articles from today's Sydney Morning Herald (free registration req'd, but full articles reproduced below the jump).

Item 1: The University of NSW plays down fears about Singapore offshoot. After the University of Warwick pulls out of setting up a campus in Singapore over concerns about academic freedom and financial risks, UNSW displays no such fears, partly because the Australian university had closer ties with the region and a more firmly established brand name. It also turns out UNSW will receive about A$80 million in funding from the Singaporean Government.

Item 2: When the credits roll out a person of interest. A profile of banned movie director Martyn See.

Welcome to Singapore, potential UNSW academics.

University plays down fears about Singapore offshoot

The University of NSW has moved to allay fears about academic freedom and human rights at its planned $200 million-plus Singapore campus.

But university management has conceded it cannot guarantee protection of its academic staff in Singapore, given the city-state's harsh laws governing public comment and defamation.

UNSW is one of only two foreign universities granted special status by the Singaporean Government to set up fully fledged independent teaching and research institutions offering undergraduate degrees.

It expects to open the doors of its Changi campus, to be called UNSW Asia, to up to 15,000 students from early 2007.

Yesterday it said its dean of commerce and economics, Professor Greg Whittred would be the Singapore campus's first president (vice-chancellor).

However, the other overseas institution approved by Singapore, the University of Warwick in England, said last week it would not proceed with a full-scale $354 million university campus because of concerns about academic freedom and financial risk.

Advertisement
AdvertisementAccording to the student newspaper, the Warwick Boar, the university also had concerns about Singapore's ban on homosexuality and certain religious practices and about possible legal reprisals against academic-related comments "that might be seen as being outside the boundaries of political debate".

Under Singapore law, foreign institutions are not allowed to criticise local politics.

UNSW has already secured a State Government-endorsed bank loan of $113 million for the Singapore campus. But it will also receive about $80 million in capital works funding from the Singapore Government, a figure the university's deputy vice-chancellor (international and development), John Ingleson, has refused to confirm or deny, on the grounds that it is commercial-in-confidence.

Speaking from Singapore yesterday, Professor Ingleson said he had been assured by the Government there that students and academics would enjoy complete academic freedom on campus. He dismissed concerns raised by the Warwick pull-out, arguing that UNSW had "a more nuanced view of how Singapore and [its] society worked".

He conceded, however, that the university would be powerless to protect its academics should they fall foul of the Government over issues of public comment.

"There is no such thing as absolute freedom of speech in any country … in that sense, our staff and our students will be subject … off-campus to the laws of Singapore like anyone else," he said.

Professor Ingleson believed Warwick's decision was based on financial risk rather than concern about academic freedom.

He said UNSW was not exposed to the same risk as Warwick because the Australian university had closer ties with the region and a more firmly established brand name.

When the credits roll out a person of interest

Martyn See did not make a pornographic film, but the first-time Singapore director says he may as well have. He shot a profile on the country's leading opposition figure, Chee Soon Juan.

Making a party-political film is as serious as making pornography in the island state. The fallout from Singapore Rebel, a 26-minute film that documents Chee's political journey without naming his Social Democratic Party, has highlighted the Government's sensitivity to political debate.

Seven months after See, 36, withdrew his "objectionable" film from the Singapore International Film Festival, he is still under police investigation. Two human rights organisations have raised See's case and what they believe is the misuse of Singapore's laws to punish government opponents and deter people from expressing dissent.

"I decided to explore why political opposition in Singapore was marginalised by the media, the Government and the public. I wanted to zoom in on one person," See says. "I was aware I could run into censorship problems, but not a full-blown investigation. It came as a shock."

Advertisement
AdvertisementFriends of See who are unconnected with the film have been questioned by police in recent weeks. One, the activist blogger Jacob George, reported this on the internet. While the film has been banned, no charges have been laid. It can still be seen in Singapore via Amnesty's Asia-Pacific web portal.

See's problems started with the festival requesting that he withdraw the film because it was "objectionable under the Films Act". Organisers told him that if he withdrew the film, the matter would be dropped. Failing that, the full extent of the law would apply. He withdrew it but submitted it, on request, to festivals in New Zealand, Malaysia and the US.

"I am telling the truth as objectively as I can. I praised the [People's Action Party] Government at the beginning. [The film] is hardly subversive, not seditious, and not defamatory in any way. Singaporeans are mature enough to be able to judge," he says.

In May, he was called in for a "cordial" police interview. Police have confirmed there was an investigation but have given no details. In August, See was called for a second, "more politically skewed", interview. "The police asked me, 'Why did I send the film out knowing it was objectionable?' They asked if I was a member of a political party … did I have continuing contact with Chee Soon Juan? I told them I was not a member, but I did have ongoing contact with Chee."

See surrendered his camera and tapes of Singapore Rebel after the second interview. Then, in mid-September, the same police officer asked two of See's friends to come in for interviews. "Right after that Amnesty and SEAPA [the South East Asian Press Association] spoke out," says See, who is wary about making himself, rather than censorship restrictions under the Films Act, the issue.

Under the act, it is illegal to make or show party-political films. However, a 2002 Hong Kong-made documentary on the state's founding father and long-time prime minister, Lee Kuan Yew, has been shown in Singapore.

"It's the equivalent of pornography; the penalties are as harsh," See says. If charged and convicted, he could face up to two years' jail or a fine of up to $US100,000 ($78,700). He calls the act outmoded but concedes few Singaporeans are "clamouring for any change".

In Singapore Rebel, Chee is asked why he pursued politics, knowing the sensitivities. Within months of joining the opposition in 1992, he was accused of misappropriating funds and sacked from the National University of Singapore. He had to sell his house and car to pay for a defamation suit, and has been called a liar by the Prime Minister, Lee Kuan Yew.

"All it means is the PAP wins and if the PAP wins, Singapore loses," Chee says. "When my children grow up they will know what their father stands for. It doesn't matter what Lee Kuan Yew says."

See's next project will be a short film about Said Zahari, who was detained without trial from 1963 to 1979 under the Preservation of Public Security Ordinance (now the Internal Security Act). "I am glad I hung out with Chee Soon Juan for a couple of years, with people who are less fearful," he says. "It rubs off on you."



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Daily linklets 26th October

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Harmonious society, pollution and cross-Straits relations

Another excellent edition of the Jamestown Foundation's China Brief. As usual, the highlights:

1. Willy Lam, one of the better China pundits, looks at the new five year plan and asks if it is a roadmap towards a "harmonious society". The conclusion bears repeating, but the whole article is a great read:

The change- and risk-averse nature of the Hu leadership is also evident from a series of articles recently run by the party journal Guo Feng (“Spirit of the Country”) on the secrets behind the staying power of several evergreen political parties in the world. A piece written by theorist Xiao Feng on the Cuban Communist Party heaped lavish praise on how Fidel Castro has stood up to American pressure. Xiao asserted that Cubans had remained strong and defiant thanks to their “firm faith [in socialism] and unyielding spirit.” Xiao cited the famous Castro axiom: “We won’t change the direction of our ship even if we were to sink into the deep sea.” Indeed, in a now-famous internal talk late last year, Hu had praised the Castro and Kim regimes in Cuba and North Korea for effectively preserving the “purity” of Communist ideals. Moreover, a series of ideological campaigns launched this past year by Hu, including a Maoist movement to “preserve the advanced nature” of party members, has been modeled upon the Cuban experience. It is highly doubtful, however, whether the Chinese leadership’s ambitious blueprint for socio-economic take-off could ever be attained through wallowing in the mire of old-style CCP norms.

2. China's pollution and its threat to domestic and regional stability. A good summary of the current woeful state of China's environment and its spreading impact. Again read the whole thing but to repeat the conclusion, which I don't fully agree with:

Pollution and environmental degradation, not traditionally considered security concerns, should be accounted for in security assessments of China and the region. Social unrest, the potential for large-scale political mobilization, and democratization are increasingly challenging CCP power and legitimacy. These trends, when linked to political change, could lead to outbreaks of violence, possible large-scale emigration, economic instability, and other concerns.

In facing such a serious problem, China would benefit from further foreign assistance and expertise. As the health of China and its economy is inextricably linked to all of the world’s most developed economies, wealthy states and NGOs should consider additional courses of action to help China form a credible environmental movement supported by legal experts, academics and Party officials sympathetic to change. Although not a complete solution, increased foreign assistance may be a step in the right direction. Alternatively, and if left untreated, China’s environment will worsen and threaten stability in one of the most populated and dynamic areas on Earth.

China's environmental regulators and NGOs are growing in power and visibility. But it's not up to the rest of the world to bail China out of its self-made environmental problems. It's up to China's leadership to recognise these problems and the potential constraints they could impose on continued economic growth. As an aside, Reuters reports China is to blacklist and penalise polluting cities, while CSR Asia says there are 400,000 smog-related deaths a year.

Update

Co-incidence or not, Mark Thoma points to Thomas Friedman's piece on China's growing environmental problems and the potential for co-operative policies.

/update

3. More Strait talk: 10 years after the Taiwan missile crisis. Recounts the recent history of cross-strait relations and optimisically states peace and stability can unfold in a pragmatic and step-by-step fashion. After a decade of “cold peace,” it is in the best interest of both sides to engage in constructive dialogue on simple, functional, and non-contentious issues.

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October 25, 2005
Daily linklets 25th October

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Donald Tsang's dictatorship

The Globe and Mail reports on Donald Tsang's visit to Vancouver, the first leg of his junket around America and Europe. Democracy is not around the corner, proclaims The Don. It's not even on the same street map, in fact. In an affront to particle physicists everywhere, he said, "We do not believe in a big bang. We believe in incremental stages to find a solution." Hong Kong's poor, ignorant huddled masses need time to come to grips with this complicated "voting" concept. In a cynical attempt to curry (hmmm, curry) favour with pro-Beijingers, The Don laid into his erstwhile employer, Britain: It was unfair to blame Hong Kong leaders for not bringing in democracy immediately, after more than 140 years of colonial rule when they could not vote. But wait, there's more:

Mr. Tsang dismissed a suggestion that Beijing has been heavy-handed lately in its relations with Hong Kong. The presence of the People's Liberation Army in Hong Kong is not an issue, he added. Some even see advantages over colonial days. The soldiers from mainland China are much better behaved than their British counterparts before 1997.

"Every weekend there were brawls in the bars with the British soldiers. We have had not one single incident involving Chinese soldiers, not even traffic tickets. . . . With the British, it was every week."

Thank God for the PLA. The Don clearly doesn't care for the dozens of bouncers now out of work thanks to the orderly nature of drinking holes sans the best of British infantry. Even better, in his eagerness to burish his pro-Beijing credentials, The Don commits a faux-pas:
Mr. Tsang refused to describe Beijing as a dictatorship.

"Dictatorship to me is something like Hitler or Saddam Hussein. One person in it. Certainly that is not the case in China."

So much for the dictatorship of the proletariat.

(Thanks to False Positives for the article)

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October 24, 2005
Daily linklets 24th October

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China Blog List

The new and improved China Blog List has been launched. John from Sinosplice explains the new features and improvements of this essential tool for English language Chinese blogging.

It's your one-stop China blogging shop. Go check it out.

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Oil Prices Headed for the Slippery Slope?

Saw this article today in Xinhua on how Chinese demand for imported oil fell 18% this year in response to higher energy prices and depressed refining margins due to China's price controls.

I have suspected for some time that oil prices today are artificially high, driven by speculation and government strategic buying programs. The major reason that has been provided by oil price bulls has been that there is a strategic, secular increase in oil prices created by China and that we'll just have to get used to $65 per barrel.

Let's see how much longer that continues with increasing interest rates and slowing demand, and continued decreases in oil imports from China...

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Asia's sad obsession with Nazi-ism

The headline reads Naked Nazi porn provokes Hong Kong fury (NSFW), although the article itself points out it has not provoked fury or outrage, yet. Below the jump the article is reproduced sans NSFW photos and it's an entertaining read.

Yet is the outrage from the English language press over the use of Nazi memorabilia as a marketing gimmick unjustified? We've previously looked at Asia's ambivalence to Hitler. While many here wonder what the big deal is, I'll leave it to commenter Joe to pose the problem in a different light:

...ignorance isn't an excuse. I'd imagine that the equivalent of that would be someone standing on the London Tube or the 'A' Train in New York in full Japanese Imperial Army regalia.....but the difference is that wouldn't happen (unless someone knows otherwise of course).

Can you imagine, if that did happen and the Chinese press caught wind of it?

Besides the offensiveness of such trivialising of Nazi-ism and its evils, the double standard, the ignorance, the insensitivity and incomprehension are massive. As Jonah Goldberg wrote in an excellent piece last week, Hitler is suppose to define the outer limits of evil, not the lowest threshold. There's no point in comparing evils - each attrocity is unique. But for a contintent that has endured its fair share of evils, Asia's fascination with Nazi-ism reflects an intolerance that is all too common.

There's no outrage here. Just sadness and pity.

(Article via Spirit Fingers)

Akasi, a quarterly publication for the discerning Nipponophile, has become the latest convert in Hong Kong’s love affair with Nazi Germany. The October issue of the top-shelf glossy is dominated by pictures of an attractive young lady partially dressed as a tank commander and cavorting with wartime general Heinz Guderian.

But unlike every other local business that naively or cynically cashes in on Nazi notoriety, Akasi has yet to generate a single raised eyebrow. Until this reporter spotted a copy on the top shelf in a Causeway Bay 7-11 last week.

In Hong Kong’s English language media, there are few subjects more likely to generate an outraged print campaign than the use of Nazi memorabilia as a marketing gimmick.

There's nothing a Hong Kong girl loves more than a man in Hugo Boss with a handbag. To many Hong Kongers, Nazis represent the epitome of desirability. Their tanks were made by Mercedes and Porsche; their uniforms were original Hugo Boss. Twenty years after the last British skinhead tired of the joke, it’s still not unusual to see a Hong Kong teen in an Adolph Hitler European Tour t-shirt.

And whether it be a karaoke den with photos of Germans executing prisoners (a strange choice of decoration, admittedly), a fashion store decorated with swastikas, a TV station describing its ad breaks as “the final solution” or a coffee shop picking Hitler for its daily quote, German wartime symbolism is never far from the editor’s outrage button.

Yet somehow, Akasi’s efforts have slipped below the radar. It’s hard to imagine how this could be, since Hong Kong 7-11’s are apparently full of penniless gweilos looking for love these days, and from our experience, at least some of them are likely to be journalists.

More importantly, the magazine pulled out all the stops to ensure someone would be offended: They’ve put the girl on the front and back covers, dressed her in death’s heads, seig-heiling on a swastika backdrop. And just in case anybody missed the connection between the uniform, the tank the swastika and the jackbooted nipple tweaking love interest, the magazine even has a centrespread article about Guderian’s life and works.

With poses like this, it's hard to imagine Asak's publishers were not aiming to offend. Guderian is often credited as an architect of the Blitzkrieg and a vocal proponent of the destruction of Warsaw. He rose to become Hitler’s army chief of staff before conveniently falling out with him a few days before the war ended.

As Guderian has been dead for fifty years, getting him to pose for Akasi would have proved difficult. But the magazine found a cunning way around that little difficulty: They popped down to the shops and bought a plastic replica.

And they did the same thing with the tank.

But we’re digressing. If it was news notoriety Akasi was after, something went badly awry. The directors of the Calvin Group, which publishes Akasi, must be kicking themselves over the acres of scandalised newsprint they’ve failed to inspire. This cynical attempt at media manipulation should have generated a maelstrom of outraged Sunday front pages and inside page follow-ups.

But it hasn’t. All they’ve managed to do so far is inspire this one solitary Web report. How could they have so misjudged the media?

It could be that the strip is simply too silly to horrify anyone. Anyone who can pose a topless babe alongside an Action Man with a moustache must surely possess a sense of humour. And you’d have to be either a satirist or a very disturbed tank nerd to think of Photoshopping topless triplets into a Tamiya Tiger tank.

Or it could just be that the girl is just too cute to cause offence.

At the time of going to press, Netnewsasia had been too lazy to bother contacting Akasi, so we have no informed opinion on the publisher’s motives. All we can offer is speculation. We also noted that the printer’s name is Flying Wind. If that's not significant, we don't know what is.

Pictures on this page have been reproduced in the public interest. As a concession to those readers for whom the sight of an unclothed nipple may cause distress, Netnewsasia would like to point out that we have carefully avoided reproducing any display of muff in this report.

This is a great pity, because it’s an awfully nice one.



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[boomerang] Posted by Simon at 10:54
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Making China's numbers add up

Last week China reported another stunning GDP growth number of 9.4%. But as we've found numerous times before, the numbers underlying the GDP calculation don't add up. Either China's consumers went on strike or fixed asset investment has been over-estimated. Jake van der Kamp is on the case and reaches an unsurprisingly but important conclusion (below the jump).

Other reading

Brad Setser calls it China's crazy numbers.
Big Picture also doesn't trust the numbers, saying I simply don't trust the commies to release the real data

chinastats.jpg

When the National Bureau of Statistics in Beijing occasionally admits that the figures it publishes are not entirely reliable, I know exactly what it means. We had another case of it last week with the release of third-quarter provisional statistics for gross domestic product. Strong investment and robust private consumption pushed economic growth to 9.4 per cent in the quarter, said the bureau.

Oh yeah? Let us take a closer look at this.

The red line on top of the first chart shows a four-quarter rolling total of reported GDP in dollar-of-the-day terms. For the year to September 30, the mainland's economy registered an output of slightly less than 15 trillion yuan. Now we turn to the components of GDP. The biggest by far is fixed asset investment and firm figures for this were also published last week. Fixed asset investment for the year to September was 8.2 trillion yuan, 24.5 per cent greater than the previous year and the equivalent of 54.8 per cent of total GDP.

These are huge numbers, incidentally. It may be possible to find another country with fixed asset investment of more than half of GDP but I cannot think of any. For contrast try Britain at only 16 per cent or the United States at 19 per cent. In Hong Kong the figure is 21 per cent.

Let us take the fixed asset investment figure out of the mainland's GDP, however, to see what is left. We now have the red line on the chart. The rest of the economy turned out 6.8 trillion yuan in the year to September. The next step is to take out net trade in goods and services. The mainland enjoys a soaring trade surplus at the moment. It is not huge by the benchmark of the overall economy but deduct this component of GDP and you get the green line on the chart. We are now down to 6.1 trillion yuan. Finally the line in the ugly colour. Government consumption spending is another component of GDP and detailed figures are also published. Take it out as well and we are down to 3.4 trillion yuan. Notice here that this final line for what is left now curves distinctly down.

What is left is two items. One, change in inventories, is now an insignificant component of GDP and we shall ignore it. The other is private consumption spending, normally the biggest single component in most economies but certainly not in the mainland, it seems.

It seems, I say. Take that line in the ugly colour, plot it as a year-over-year growth rate and you get the red line in the second chart. It seems from this that in the year to September the man on the street spent 17 per cent less on daily necessities and toys than he did the previous year. But this is not what other official statistics say. They say that retail spending for the year to September was 13.6 per cent greater than it was the previous year (the blue line) and that this retail spending alone was almost twice as great as the remainder number we calculated for all personal consumption spending.

How is it possible?

It is not. The latest GDP figures from the mainland simply do not add up. I hesitate to use the word "rubbish" to describe them but I am starved of a better one.

I think the enormous discrepancy most likely results from an overstatement of fixed asset investment. Capital spending probably is much less than the National Bureau of Statistics says it is. This would imply something else again, however. It would suggest that a vast amount of money earmarked for capital projects was embezzled by corrupt officials and used instead for personal spending on luxury services and toys.

I shall not suggest that this surprises you.

Every second anecdote from the mainland tells you it happens every day. All I have done is put some possible numbers to the scale of it, a very big scale indeed. But I do suggest to the National Bureau of Statistics that it adopt a brand new approach for checking statistics, a new one to the bureau that is. The next time it publishes data it might want to check that the sum of the parts adds up to a given total.

If it does not, and no further work can make it so, then the bureau should not bother to mislead us with grossly and obviously false information. The round bin under the desk is where these sorts of statistics belong.

Determining economic statistics is notoriously difficult at the best of times. But such wildly inaccurate numbers make scary reading. Why? If you're steering the world's fourth largest ship and your navigational data is "rubbish", you're going to end up doing plenty of damage not just to yourself but everyone around you.



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October 21, 2005
Un-intelligent design

Thought for the week: If the intelligent design crowd are right, why are we so badly designed? They could have at least included a cup-holder.

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[boomerang] Posted by Simon at 14:07
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Daily linklets 21st October

The 'not a lot' edition...

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China racism redux

Back in April I had a post about racism in China after the controversial comments made on Sina about Condi Rice. A reader has sent the following thoughts on the issue:

I don't think scientifically justified racism is special to Chinese people but, as I understand it, it is is still taught in schools.

As I understand it the education system in China teaches that the Chinese 'race' evolved from "Peking Man" (Homo Erectus) an ancestral hominid. The overhwelming evidence is that all of us are derived from Homo Sapiens who evolved in Africa and migrated from there around a 100,000 years ago. We may look different but, under the skin (as it were), we are all the same. I guess the Peking Man view taught in China reinforces the racism described. It's a worry and it would help if the syllabi in Chinese schools and universities could be brought up-to-date. The "monkey" taunts probably come from stupid stereotypes but it's likely that these is reinforced by tainted 'science'.

Is this still taught in Chinese schools?

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[boomerang] Posted by Simon at 11:29
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Tsang's moral hypocricy

There has been a big fuss over Donald Tsang's "privatisation of morals" comment in relation to the government's incredible appeal against the homosexuality age of consent in Hong Kong. Today Stephen Vines in The Standard points out the curious hypocricy (he's too polite to call it that) in A Moral Disconnect:

Leaving aside the dubious notion that any moral view is shared by all of society, Tsang raises a question at the heart of the debate over the extent to which the state should intrude into the lives of its citizens....On the one hand, he believes that society should be able to dictate one particular form of sexual activity between adults who have reached the age of consent, but he has no other stated views on the state's attitude to other forms of sexual activity that may or may not be viewed with distaste by the majority of the population.

So far, so inconsistent, but let us look further into Tsang's views, where more significant inconsistencies are revealed. He is on record as being skeptical of legislation to outlaw discrimination on grounds of race and, even more so, on grounds of sexual orientation. Tsang says he is still pondering racial discrimination laws, but has no interest in the other form of discrimination. One of his arguments is that laws cannot change attitudes and are, anyway, unlikely to be the most effective way of resolving these problems.

Advocates of these laws say that legislation sets a benchmark for what society regards as acceptable in the equal treatment of all citizens, and that the very presence of legislation helps to change attitudes. Tsang fully accepts this argument when it comes to a law that regulates which sexual acts are permissible between consenting adults in private, but maintains that a law which outlaws unequal treatment on grounds of race or sexual orientation is inappropriate. This is so even when this kind of discrimination goes beyond the private activities of adults and can cause real jeopardy to the victims of unequal treatment. Tsang is also reluctant to legislate on matters relating to the establishment of minimum wages for employees or even on matters such as the prohibition of idling engines for waiting vehicles.

In all these cases, he has argued that persuasion is better than law and that the government must be careful not to become too intrusive in the lives of its citizens...

Hong Kong, which self-consciously prides itself on its place among forward- looking world cities, is likely to emerge as a very curious place in this cosmopolitan world if, as Tsang suggests, its government feels the need to spend its time going to court to defend the right of the state to regulate what goes on in the privacy of bedrooms, while adamantly refusing to enact legislation that seeks to create equal treatment for all its citizens and to preserve minimum standards that are of benefit to the least advantaged.

Besides which, peeking into the privacy of the bedroom is rarely a savory activity.

Hong Kong is in danger of going down the American route, where leaders religious values infect their policy making decisions. Last I checked, Catholicism was not the state religion of Hong Kong. Let's keep it that way.

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[boomerang] Posted by Simon at 09:34
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October 20, 2005
Mao and the maoists

This review of Mao: The Unknown Story by Jung Chang and Jon Halliday is also the chance to remind the bloody history of the man whose gigantic portrait still overlooks Massacre Square, whose statues still stand in chinese villages, towns and cities, whose political heritage CCP has never repudiated.
Keith Windschuttle starts and ends his piece highlighting the responsibility of western intellectuals and journalists for praising the barbarism of Mao era and for lying against every evidence:

Snow’s book played a major role in converting public opinion in both America and Europe towards a more favorable view of Mao. Its biggest impact, however, was within China itself, where it had a profound influence on radical youth. Red Star over China and the Mao autobiography were quickly translated into Chinese and widely distributed. Many young, urban, middle-class Chinese men and women who read Snow’s books were converted. They cut their long hair short—still a daring and eyebrow-raising gesture in the 1930s—and joined the Communist Party. By 1941, thanks to the reputation Mao had earned from the Long March, party membership had grown to some 700,000.

Edgar Snow was the first, but he was far from being the only Western writer or artist to succumb to Maoism.

Instead, the West was fed a steady diet of propaganda from respectable political leaders and writers who asserted the opposite. The future Canadian Prime Minister Pierre Trudeau visited in 1960 and wrote a starry-eyed, aptly titled book, Two Innocents in Red China, which said nothing about the famine. Britain’s Field Marshal Montgomery visited in both 1960 and 1961 and asserted there was “no large-scale famine, only shortages in certain areas.” He did not regard the shortages as Mao’s fault and urged him to hang on to power: “China needs the chairman. You mustn’t abandon this ship.” The United Nations was completely ineffectual. Its Food and Agricultural Organization made an inspection in 1959, declaring that food production had increased by 50 to 100 percent in the past five years: “China seems capable of feeding [its population] well.” When the French socialist leader, François Mitterand, visited in 1961, Mao told him: “I repeat it, in order to be heard: There is no famine in China.” Mitterand dutifully reported this assurance to a credulous world. At the same time, Mao enlisted three writers he knew he could trust—Edgar Snow, Han Suyin, and Felix Greene—to spread his message through articles, books, and a celebrated BBC television interview between a fawning Greene and Chou En-lai.
Among Western intellectuals, Mao’s most enthusiastic supporters came from the French Left. Simone de Beauvoir visited China in 1955 and declared: “The power he [Mao] exercises is no more dictatorial than, for example, Roosevelt’s was. New China’s Constitution renders impossible the concentration of authority in one man’s hands.” She wrote a lengthy book about her visit entitled The Long March. During the Cultural Revolution of the 1960s, her consort Jean-Paul Sartre praised the “revolutionary violence” of Mao as “profoundly moral.”

This was the regime western intellectuals (and politicians) appreciated and excused:

Chang and Halliday calculate that over the course of his political career from 1920 to 1976, Mao was responsible for the deaths of 70 million Chinese. This is more than the total killings attributable to Adolf Hitler and Joseph Stalin combined. The biggest single number of Chinese dead was the 38 million who perished in the famine of the four years from 1958 to 1961, during the so-called Great Leap Forward. Westerners have known since Jasper Becker’s path-breaking 1996 book Hungry Ghosts: China’s Secret Famine that the famine killed between 30 and 40 million people. Becker attributed this to Mao’s ideological folly of conducting an ambitious but failed experiment in collectivization. Chang and Halliday produce new evidence to show it was more sinister than that.

Mass homicide on the scale of the Great Leap Forward was something that Mao prepared for. He told the 1958 party congress it should not fear but actively welcome people dying as a result of party policy. It was a common theme of his at the time. In Moscow in 1957 he said: “We are prepared to sacrifice 300 million Chinese for the victory of the world revolution.” On the prospect of another world war, he told the party in 1958: “Half the population wiped out—this happened quite a few times in Chinese history. It’s best if half the population is left, next best one-third.” Hence, Mao’s eventual career tally of 70 million deaths was actually much less than he anticipated.

Mao used precisely the same model in the so-called Cultural Revolution of 1966–1968. Party historians and sympathetic Western academics, then and now, rationalize this event as Mao’s attempt to revive the revolutionary spirit and arrest pro-capitalist and anti-socialist tendencies. In reality, Chang and Halliday show, it was yet another purge of Communist officials designed to terrorize the party and secure Mao’s leadership. Indeed, Mao himself thought of it as the Great Purge. Its principal targets were those party leaders who thought Mao’s attempts at collectivization and industrialization during the Great Leap Forward were a disaster.

But what were the main differences between Mao and the other totalitarian mass murderers of the XX century?

What made Mao the greater monster was not just the sheer quantity of his killings. It was because so many of his victims came not only from his real and imagined enemies but also from his own supporters. Chang and Halliday make it clear that Mao built his political power out of a life-long strategy that easily outdid even Stalin in waging murder and terror among his own Communist Party comrades.

Mao’s innovation to the Soviet system was to turn this persecution into public display. Mass rallies, public denunciations by informers, and public confessions of being AB (anti-Bolshevik) became the order of the day. Mao used this accusation to purge the party hierarchy of anyone who disagreed with him or whom he thought potentially disloyal.

Unlike Hitler and Stalin, who used secret police to arrest and interrogate victims, Mao used all those not yet accused to spy on, guard, interrogate, arrest, and punish those already accused. The Yenan settlement became a self-perpetuating totalitarian state. No outside press or radio communication was permitted. No letters could be sent or received from the outside world: Indeed, letters were construed as evidence of spying. Humor, sarcasm, and irony were banned. The regime invented a new catch-all offence, “Speaking Weird Words,” which meant any comment that could be interpreted as a complaint or a wisecrack could have its speaker accused of being a spy or traitor. Two years of this regime transformed the once young and passionate volunteers into robots, capable of enunciating nothing but bland echoes of the party line.

Mao and CCP today:

Chang and Halliday finish their biography with a gloomy reminder. In the face of today’s renewed bout of Western enthusiasm for China and its purported miracle economy, they use their epilogue to emphasize just how little has changed politically. Today, Mao’s portrait and his corpse still dominate Tiananmen Square in the heart of the Chinese capital. The current Communist regime declares itself to be Mao’s heir and fiercely perpetuates his myth.

Ever paid a visit to Mao's Mausoleum? So much for "socialist political democracy"...

But:

In the past, books about China have played a major role in altering its politics. Edgar Snow’s Red Star over China was important in winning domestic support for the Chinese Communist Party. Chang and Halliday’s book will be impossible to ignore. It will no doubt be banned in China, but will still circulate secretly and be more sought after for that. The tens of thousands of Chinese students now studying at Western universities will see it in the bookstores. The story its authors tell is so awful it will both shock the Chinese people and confirm many of the private anecdotes and rumors passed down within families. Rather than being the man who made the ancient Middle Kingdom stand up again, Mao was the one who brought it to its knees. This is a powerful story which Mao’s heirs will have great difficulty denying or suppressing. Just as Snow’s book helped install the regime, Chang and Halliday’s could help bring it down. If any single book in our own time has the capacity to change the course of history, this is it.

Dedicated to the CCP (and sometimes Mao) apologists that still today people the world and the blogosphere.



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[boomerang] Posted by Enzo at 22:32
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The Slug Moves On

It has finally been reported today that Elsie Leung, Hong Kong's Secretary for Justice, has resigned and has been replaced by Wong Yan-Lung. I know little about Mr. Wong other than the fact that he is a well-respected member of the local legal community and a member of the Article 45 Concern group, but he has got to be better than Ms. Leung, the walking embarrassment to Hong Kong jurisprudence that lurched during her incredibly long 8-year tenure from one fiasco to the next. I find it somewhat amusing to rearrange the letters of her name to spell "Slug in Eel".

Lest we forget: she spearheaded the effort to obviate the need for a Court of (Semi-)Final Appeal early in Tung's tenure to reinterpret a ruling it made on 'Right of Abode' claimants in Hong Kong. She defended her decision not to prosecute Sally Aw, then owner of the Standard, for grossly defrauding the public and potential investors with totally fabricated circulation numbers, by saying that prosecuting the Tung crony would 'run the risk of losing jobs.' There's more but I think those two snippets will refresh your memory and hopefully your outrage. And yes, democracy in Hong Kong might help remove the tumor of incompetence faster and earlier from the local body politic, instead of Mr. Tung's 'ministerial' system.

Go on, Mr. Wong. You can do better. You'll clear that low bar as long as you've got a 2-inch vertical leap.

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[boomerang] Posted by HK Dave at 19:51
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Daily linklets 20th October

The Hu's in control edition...

Hemlock on Hong Kong's democratic reforms:
Beijing issues a white paper declaring that there will be no barbarian-style democracy so long as the Chinese Communist Party stands. And maybe that goes for the Big Lychee too, judging by the Hong Kong Government’s exciting proposed constitutional reforms, released – by one of those uncanny, cosmic coincidences – on the same day.

The Big Boss briefs the morning meeting, reading from his Government-issued Line-to-Take, which is designed to counter pro-democrats’ claims that the proposals are insultingly lame. “On the subject of a timetable,” our pro-Donald Chairman intones, “it’s basically a matter of timing.” He looks up to survey the bemused faces of his senior management team. What the hell does that mean? “We first have to create favourable conditions and have all the building blocks in place,” he goes on, “like grooming political talent and um…” He looks down at the sheet of paper again and skips a couple of bullet points. “Oh yes – we can’t exclude appointed District Councillors from all of this because they have the same responsibilities as elected ones, and it would be unfair to discriminate against them.” He looks up again, as if to plead for understanding. He didn’t think this stuff up. “And, um, these proposals are firmly grounded on public views,” he reads out, “and represent a major step towards the ultimate aim of universal suffrage.” He shrugs slightly as he puts the paper down. “You’d have though they could come up with better arguments,” he admits.

The problem, it occurs to me, is that the most effective arguments would provoke opposition from the other side of the political spectrum, and maybe even to our north. The logic of the proposals is that the days of the small-circle functional constituencies are drawing to a close. Ship owners, dentists, employers, construction firms and other groups demanding a rotten borough in the legislature were snubbed. The new functional constituencies will be elected – albeit indirectly – by the people, diluting the influence of the corporate electors. Chris Patten would probably approve. But the Government can’t stress this, because it needs a two-thirds majority in Legco – the votes of odious Liberal Party boss James Tien and his cartel representative friends – to get the package through. In order to get the turkeys to vote for Christmas, the Government can’t talk up Christmas, leaving the pro-democrats looking at the gloomy side of the festival.


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China's economic bullet train

China's latest economic data (admittedly, take with a grain of salt):

3rd quarter GDP: +9.4% (forecast 9.2%)
Jan-Sep industrial output: +16.3% on year earlier
Jan-Sep fixed asset investment: +26.1% on year earlier
Jan-Sep urban fixed asset investment: +27.7% on year earlier
Jan-Sep retail sales: +13% on year earlier
Jan-Sep CPI: +2% on year earlier
Jan-Sep PPI: +5.4% on year ealier

Low inflationary strong growth continues. It is, quite frankly, amazing.

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[boomerang] Posted by Simon at 11:29
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Hong Kong's white mouse

Commonly in business and just like waistlines, you expand when things are going well and contract when they are not. Except in Hong Kong. Forbes reports on the government's latest attempt to throw more bad money after bad at Hong Kong Disneyland:

The government may be asked for funds to finance the proposed expansion of Hong Kong Disneyland if revenues from the theme park's operations and alternative funding sources are insufficient to meet the capital outlay, said Secretary for Economic Development and Labor Stephen Ip.

In a written reply today to a question from Legislative Council (LegCo) member Fred Li, Ip said theme park operator Hongkong International Theme Parks Ltd (HKITP), a joint venture between the government and Walt Disney Co, will generate earnings for use in further developing the park.

'If HKITP cannot finance the park expansion from the operational receipts or other funding sources and requires government equity injection or loans, this will be put to the finance committee of the council for consideration,' he said...Ip said the government and Walt Disney have agreed 'to keep up the momentum to develop the theme park and expand the number of rides and attractions to attract visitors to the theme park.'

The park can't pay for itself, so the government will continue to add funds. If only other businesses could tap into such largesse.
He said that a new attraction, Autopia, will be completed in 2006.
To be followed by the new White Elephant ride, taking in West Kowloon, Tamar and other outstanding examples and ending back at the White Mouse HQ.
'Other attractions will continue to be built, having regard to market demand,' he said. Ip did not say how much is required for the Disneyland expansion projects. He said the government will ensure that the HKITP's resources are properly used through government officials who sit on the joint venture's board.
Even better, the government could publicly release all the documentation related to HKITP so the actual owners of the park, Hong Kong's taxpayers, can see what the government has done on their behalf. Oh, wait, look, there's a flying elephant with floppy ears.
Ip said the development and operation of Disneyland cost some HK$14.1 bln which came from equity contributions from both the government and Walt Disney, as well as loans from the government and various financial institutions.

Of the total HK$14.1 bln development costs of Disneyland, the government injected HK$3.25 bln, while Walt Disney put in HK$2.45 bln. The rest of the funds used for the project came in the form of borrowings of HK$8.4 bln by the joint venture company HKITP, which is held 57 pct by the government, with the rest held by Walt Disney Co. Of the HK$8.4 bln loans, HK$6.1 bln was provided by the government, while the balance came in the form of commercial loans obtained by HKITP.

I've been through the maths of HK Disneyland's financing before. But it's still staggering that the government provided both equity and a large part of the debt to finance the park, not to mention the huge amount spent on reclamation, infrastructure and remedial work.

No wonder Mickey smiles so much.

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Nancy Kissel: Guilty (Updated October 20th)

The trial has ended, and the jury has convicted Nancy Kissel of murder; she has been sentenced to life in prison. Please scroll to the bottom for details and breaking news. A summary of the links and details of the case:

For earlier trial updates and background information, please look at:
1. Nancy Kissel archive part 1 (covers up to July 18th, including introductory material)
2. Nancy Kissel archive part 2 (covers between July 19th and August 4th).
3. Nancy Kissel archive part 3 (covers between August 5th and August 18th)
4. Nancy Kissel archive part 4 (covers between August 20th and August 30th)

ESWN also has a comprehensive archive on the Kissel trial.

Update September 1st

* The Standard: Jury expected to retire and decide Nancy Kissel's fate
* SCMP: Judge questions Kissel's 'meltdown' claim

Defence claims that Nancy Kissel had a "meltdown" after she killed her husband had to be considered in light of the manner in which she carried out what the prosecution called her "cover-up" activities, jurors were told in the Court of First Instance yesterday.

Mr Justice Michael Lunn also said the evidence of Kissel's generous contributions to her children's school and the Jewish community was "unchallenged".

The judge, on the second day of his summing up, drew the jury's attention to stills taken from closed-circuit television footage that showed the defendant dragging a large suitcase, carrying a rug and shopping bags on different occasions two days after she allegedly murdered Robert Peter Kissel, a senior Merrill Lynch banker, in their Parkview apartment on Sunday November 2, 2003.

The judge said Suzara Serquina, of Tequila Kola in Aberdeen, described the defendant as "normal" but "a little bit loud" during her visit to the furniture store at 5.30pm on November 3.

The accused, wearing sunglasses inside the store, gave a lavish compliment on a display item.

"[The witness] and another salesperson exchanged glances," the judge said.

The accused bought a chaise lounge, two cushions, and a small carpet, and ordered a tailor-made bedcover, before returning the next day to buy two more large carpets at a total price of $27,000.

The defendant had also on the morning of November 3 ordered 20 cartons from Links Relocation, a removal firm, the judge said.

The police later found bloody items, including the 3.7kg lead ornament Kissel used to attack her husband, in the boxes.

She was also found to have accessed the homepage of Hong Kong Police and its pages on missing and wanted persons on the same day, he added.

Mr Justice Lunn invited the jurors to look at the evidence "in respect of whether or not she had gone into a meltdown" after the killing.

Kissel, 41, has admitted killing the banker but pleaded not guilty to murder.

Alexander King SC, for the defence, argued in his closing submission that Kissel had "melted down" after the killing, and that this had caused her to carry out a number of bizarre acts, such as sleeping with her husband's body for at least two nights and calling her husband's mobile phone.

He urged the jury to acquit her of murder, arguing that she had acted in lawful self-defence.

Kissel told the court that she could not recall much about the incidents in those few days.

But prosecutor Peter Chapman said the acts were carried out to cover up the alleged murder.

The judge reminded the jury that the accused had also ordered her two Filipino maids to buy six boxes of peppermint oil from the Body Shop and two coils of rope in Stanley.

She also arranged for some Parkview workmen to carry the old carpet roll concealing the deceased's body to her storeroom on November 5. When the head workman commented to her that the carpet smelt like "salt fish", she did not react and closed the door.

The judge said Bryna O'Shea, Kissel's best friend in San Francisco, said in her oral evidence that the defendant was not crying on the phone and that she was "forcing herself to sound upset" when she told her that her husband walked out after beating her. This left the witness questioning what was really happening, said the judge.

The prosecution witness also found it strange that Kissel complained to her about being unable to write out cheques and said "f***ing Rob had it all tied up with Merrill Lynch" at a time when she did not know his whereabouts.

Ms O'Shea also recalled asking her friend if she wanted to cancel breast enhancement surgery scheduled for mid-November in San Francisco. To her surprise, the accused replied: "No, don't cancel it. I will be there."

But the judge said various defence witnesses had given "unchallenged evidence" on her generous contributions to the Hong Kong International School, where she had been the vice-president of the Parent Faculty Office (PFO), school photographer, and organiser of a successful annual fund-raising event.

He repeated the remark of her good friend and former president of the PFO, Trudy Samra, in relation to her efforts in creating the popular school calendar: "Nancy is the calendar."

And Mr Justice Lunn reiterated a government scientist's conclusion that he had never encountered the combination of five drugs found in the victim's stomach and liver contents - alleged to come from a sedative-laced milkshake Kissel used to drug him.

The jury is expected to deliberate whether to return a verdict of murder, manslaughter or acquit her after the judge finishes his directions today.


Update September 2nd

* The Standard: Lover 'Bragged' Of Affair
* The Standard: GUILTY
* The Standard: Dad agonized over 'false' charges against victim
* The Standard: Robert 'would probably ask for compassion'
* The Standard: Murder trial like a US soap opera in HK courtroom
* SCMP: Nancy Kissel Jailed for Life

Nancy Kissel was sentenced to life in prison yesterday after seven jurors unanimously found her guilty of murdering her husband after one of Hong Kong's most sensational trials.

The 41-year-old mother of three was expressionless in the dock as guards put her in handcuffs and escorted her to a prison van after Justice Michael Lunn passed sentence. Her mother, Jean McGlothlin, and friends broke down in court.

After eight hours of deliberation, the grave-looking jurors entered the courtroom about 8.30pm, to return a unanimous verdict of murder.

Sentencing Kissel, Mr Justice Lunn thanked the jurors for sitting with patience and care through the "gruesome details of the circumstances in which Robert Kissel met his death" in a trial that almost lasted three months. He exempted them from jury service for the next 15 years and granted them the maximum additional allowance of $280 a day for performing their duty.

Michigan-born Kissel was arrested five days after she drugged Robert Kissel, a senior Merrill Lynch banker, with a milkshake and bludgeoned him to death with a heavy lead ornament in their luxurious Parkview flat on November 2, 2003. She arranged for workmen to carry the victim's body, concealed in an old oriental rug, to her storeroom.

Prosecutor Peter Chapman said during the trial that Kissel killed her husband in a "cold-blooded" murder to escape a "messy, lengthy" divorce and be with Michael Del Priore, her TV-repairman lover who lived in a trailer park in Vermont.

Defence counsel Alexander King SC claimed Kissel had been subjected to five years of forceful anal sex and physical assault by a husband who abused cocaine and searched for gay porn websites. Kissel told the court her husband had threatened to kill her with a baseball bat and that she had almost no memory of the activities she embarked on to cover up her crime.

William Kissel, the victim's 77-year-old father who flew from Florida to attend the trial, said after the verdict: "Justice has been served. Am I sad? Yes, I lost my son. My son is resting in peace now. All the allegations against him have been proven false. The jury, after a three-month trial, in half a day, declared her guilty of murder.

"Rob was a wonderful father. He tried his best to be a wonderful husband and I just wished that his children could go on with their lives knowing the beauty of their father and how much he loved them.

"One doesn't stand up in court and accuse one's husband of all these horrible events because at the same time you do that, you are condemning your own children, your grandchildren and great-grandchildren."

Kissel's mother, Jean McGlothlin, who stood by her daughter every day in court, held back tears as she said to a crowd of journalists: "Mostly I would like to say thank you for the respect you have shown me and my family. Except for photographers, you have all been wonderful. It's helped me enormously ... I am trying to get my feet on the ground."

She refused to say whether an appeal would be lodged. The simmering feud between the camps of Robert and Nancy Kissel boiled over into a public slanging match as they waited for the verdict.

As William Kissel was telling reporters about what he termed the "terrible legacy" his daughter-in-law had left for her children, Nancy Kissel's adviser, former journalist Jim Laurie, said she should be allowed to see her children.

Mr Laurie, a lecturer in journalism at the University of Hong Kong, suggested the children's financial security would be threatened if Robert's brother Andrew, who is facing embezzlement charges in the US, won custody of the children.

Mr Kissel lashed out at the defence's tactic of portraying his son as a sodomist, cocaine addict and alcoholic. "You don't know him [just] because you lived in the same building," he said to Mr Laurie.

"What puts you in a position to judge?" Mr Laurie replied it was "impossible to know what happened" in the relationship.

Mr Kissel shot back: "Are you going to write a book now ... and say Nancy is innocent?"

The judge also ordered transcripts and statements on the withholding of the baseball bat by the defence for 18 months to be sent to the Director of Public Prosecutions.

Mr Justice Lunn said in his summing up yesterday morning that the court had heard nothing about the defence keeping the baseball bat - allegedly used by the deceased to beat his wife - until July 21. He said that Simon Clark, the defence solicitor who was in court throughout the trial, had been keeping the bat since finding it in the bedroom of Kissel's flat in November 9, 2003.

"What became of the baseball bat during the period between November 9, 2003, and July 21, 2005? We knew nothing about it at all."


* SCMP: The 'perfect' marriage that ended in a Parkview bloodbath
Outsiders said Robert and Nancy Kissel had the best marriage in the universe. The husband was a high-flying senior investment banker at Merrill Lynch whose personal estate is worth US$18 million. The wife, an attractive, artistic, and devoted mother of three, had everything that an expat woman could dream of. They lived in a luxurious Parkview apartment and sped about town in a Mercedes and a Porsche. They appeared in public with big smiles, dining with important people such as former US president George Bush.

But the illusion of the beautiful life was shattered on November 2, 2003. On that fateful day, Nancy Kissel killed her husband by hammering his head repeatedly with a heavy lead ornament. The blows were of such force that parts of his skull were pushed into the cerebral cortex and white matter inside the brain. The two figurines sitting atop the 3.7kg ornament flew off during the attack, splattering blood all over the bedroom.

When the 41-year-old stepped into the High Court in late May, her appearance was almost unrecognisable from that two years ago in the days before the killing. The shine in her eyes was gone, blonde hair turned dark brown, colourful outfits had become plain black, her trademark sunglasses replaced by studious, oval, wire-rimmed glasses. She had lost so much weight that she walked like a shadow floating in court.

Her husband, found by police in a rolled-up rug in her Parkview storeroom five days after the killing, was buried in a cemetery in the US state of New Jersey. Their children, in the temporary custody of the estranged wife of her brother-in-law in Greenwich, Connecticut, had not seen or spoken to her since the murder.

Yesterday, after a sensational three-month trial involving more than 500 exhibits and over 100 witnesses, Kissel was found guilty of what prosecutor Peter Chapman called the "cold-blooded" murder of her husband.

When she testified in early August, Kissel gripped the city as she admitted for the first time that she had killed her husband. "Do you accept that you killed Robert Kissel," asked Mr Chapman to open his cross-examination. "Yes," Kissel replied. When the prosecutor accused her of trying to conjure a picture of the victim as an abusive husband, she broke down. "I still love him. Things happened. I stayed with him. I loved him, and I am not sitting here to paint a bad picture about him, because he's my husband," she said.

But the story of a love turned sour did not end there. It was to be followed with allegations of spousal abuse, cocaine addiction, sodomy, extramarital affairs and greed.

Life had seemed to go on as usual for Nancy Kissel on Sunday, November 2, 2003. About 9am, she drove her Mercedes to the Sunday morning service at the United Jewish Congregation on Robinson Road, Mid-Levels. When she was nearing the Parkview taxi rank, she saw Andrew Tanzer and his seven-year-old daughter, Leah, carrying a schoolbag with the logo of the congregation's Sunday school. Kissel offered the pair a ride.

At the congregation, Kissel met her husband, who had taken their three children to the service in his Porsche. She introduced him to their newly met neighbours. Leah, a sociable girl, recognised Kissel's second child, June, was also from Parkview. She urged her father to arrange a play date for her and June in the afternoon.

Shortly before 11am, Kissel left the congregation and drove her eldest child, Elaine, to her friend's birthday junk party. She dropped her daughter at Aberdeen Marina Club and drove back home. Meanwhile, her husband was having lunch at the congregation with June and the youngest child, Reis.

But under the surface of normalcy was a sea of turbulence. By that time, Robert Kissel had lost hope of saving the marriage after realising that his wife remained in frequent contact with Michael Del Priore, with whom she had begun a sexual relationship during her stay with her children in Vermont to escape Sars that summer. He had told close colleague David Noh that he would discuss getting a divorce with his wife that afternoon. Nancy must have discovered his intention because a "stupid" lawyer of his had earlier sent a list of divorce lawyers to the family e-mail account, not his Merrill Lynch one, he told him.

By that time, Kissel had already acquired three hypnotic drugs - Rohypnol, Lorivan and Stilnox - and an anti-depressant - amitriptyline - in a seven-day "shopping spree" for drugs in late October. She had told a doctor and a psychiatrist that she had serious sleeping problems, was assaulted by her husband, and had parents with a history of depression, alcoholism, and violence. The same drugs, plus an additional hypnotic, Axotal, were found in Robert Kissel's stomach and liver contents during an autopsy.

About 2.30pm, the banker returned home with the two children. Tanzer took Leah to see June in the Kissel's flat in Tower 17 at 2.45. The neighbour said it was a bit odd that Kissel never came out to greet him as the two men were talking in the living room. When he was about to leave, Leah and June came out of the kitchen with two identical glasses of pink milkshake that the prosecution argued Kissel had laced with a cocktail of sedatives for their fathers.

Mr Tanzer said he had "never drunk anything like that" and asked Kissel what it was when she popped her head out of the kitchen. "It's a secret recipe," she told him. He returned home at 4pm, shocking his wife by passing out on the couch and, bizarrely, treating himself to three tubs of ice cream at dinner. The next morning, he had almost no recollection of the evening.

Meanwhile, Kissel's husband took his son to the playroom downstairs about 5pm, where he talked for 10 minutes on the phone with David Noh. Noh said the deceased sounded tired, slurry and mellow. Robert was "on a different tangent", talking about export markets when he was asking him about real estate prices, he recalled.

Twenty minutes later, Kissel sent their maid Maximina Macaraeg to tell Robert to return to the flat. The helper met him in the car park as he was on his way home and took his son from him.

That was the last time Robert Kissel was seen alive. The next time his son saw him would be when three days later his body was carried out of the flat by four Parkview workmen in an old, stinking rug.

Back in January 2003, a month after Kissel had walked out on her husband after a fight on a skiing vacation in Whistler, Vancouver, according to her testimony, he installed Eblaster spyware on his wife's laptop and a home computer to monitor her activity. In June, he hired two private investigators to find out if his wife was cheating on him in Vermont.

He would never have imagined that the steps he had taken to confirm his suspicions would one day become crucial evidence for the police and prosecutors to retrace the steps leading to his demise. It was from the spyware reports that the court learned of the diary entries recording Kissel's frustration with her deteriorating marriage and her website searches for the drugs used to dull her husband's senses on the fateful day.

The banker would certainly have had no idea that the sick joke of his confidante, Bryna O'Shea, who said: "If Nancy is going to kill you, put me in your will," would be an omen.

With the effort of a large number of experts in DNA typing, bloodstain pattern analysts, pathologists, police officers, photographers and forensic scientists, the prosecution established that Robert Kissel was walking to his death when he returned to his flat from the car park.

Prosecutors said that his wife silently observed him as he got changed into his sleeping clothes and collapsed at the foot of their bed under the influence of the sedatives in the milkshake. They said she then struck the right side of his head using the lead ornament with what Mr Chapman called "the murderous intention to kill", until the metal base was deformed and the two figurines detached. Rendered defenceless by the drugs, the deceased suffered 10 lacerations to his head, including five fractures, each potentially fatal.

In the prosecution's theory, Michael Del Priore featured largely in the case. Living as he did on a Vermont trailer park, he saw Kissel as a "gold mine", Mr Chapman suggested. The lover could have given "tacit encouragement" to the killing, he said, since phone bill records indicated long-distance phone conversations between the two, including 106 calls in October 2003, and many more in the days following the killing. Some of the calls lasted for hours. Kissel remained expressionless throughout the prosecution case, at times jotting notes in the dock for her lawyers. On the day when a variety of stomach-churning, bloody exhibits - including pillows and bedcovers soaked with the victim's blood - were paraded in court, she lowered her gaze to the floor.

Outside the courtroom, Kissel, often sporting a friendly smile, chatted with expatriates and hugged supporters. In the defence team's makeshift office in court, she sometimes spoke with dramatic gestures, as if she was directing the counsels. She also chatted with guards in the dock using the Cantonese she had mastered during the year she spent in the custody ward of Siu Lam Psychiatric Centre after she was arrested.

"I learnt it from the people in Siu Lam. There was nobody speaking English there. I had to survive. I also taught them English," she told the South China Morning Post.

Her mother, Jean, had been her backbone from the start of the trial, walking with her hand in hand out of the court to brave the crowd of journalists. After the judge revoked Kissel's bail when she finished her testimony early last month, guards exercised their discretion to allow the mother to spend short moments with her daughter on several occasions.

That was not all that went on away from the gaze of jurors. Defence counsel Alexander King SC asked the judge on July 20 to recall the Kissels' maid Maximina Macaraeg, police officers and forensic scientists to testify about a baseball bat. He revealed that his instructing solicitor, Simon Clark, had found the bat in the Kissels' bedroom on November 9, 2003, a day after the police relinquished the crime scene. Mr Clark had since kept the bat in his office, he said.

Mr Chapman, arguing against the application, raised the issue of professional conduct to the judge. He questioned the defence motive in writing a letter to the prosecution in January this year asking if the police had seized a baseball bat in the master bedroom - at a time when the bat was already "sitting safely" in Mr Clark's office. But the defence claimed that it was asking about another baseball bat in the letter.

Mr Justice Lunn said he found it "astonishing" that the bat was not presented to court until then, but granted the recall of witnesses to ensure a fair trial for the defendant, saying the bat could be central to the defence case. Last night he announced that he had informed the Director of Public Prosecutions of his concerns over the matter.

Nancy Kissel would later tell the court, in tears, that it was the bat her husband had used to beat her on the evening of November 2, 2003. She recalled being in the kitchen as her husband called to her. She went out and saw him leaning on a baseball bat at the doorway of their bedroom. "I am filing for divorce and I am taking the kids. It's a done deal," her husband told her. Tapping the bat in his hand, he said it was to protect himself in case she got "mad". She went back to the dining room and grabbed the lead statue, her heirloom, in a fright.

She trembled as she told the court how her husband said to her: "I will f***ing kill you, you bitch". She said her husband smacked her face and grabbed her arm after she waved her finger in his face. She fell, dropping the statue.

"He pulled me into the room, pulled me onto the bed ... and started to have sex with me," she said. "I started kicking him. We ended up on the floor," she said. Kissel said she reached for the statue on the floor and swung her arm back. "I didn't even look and I thought I hit something," she said.

"He came down on me as I was holding the statue in front of my face," she said in a weak voice.

Unable to carry on, Kissel sat, trembling and wordless, for almost a minute, the stares of all in the court fixed on her face. Finally after trembling for almost a minute, she said: "I can't remember."

The defence case turned more intriguing as its computer forensic experts displayed in court alleged homosexual and gay porn website searches by the deceased. In their case, Robert Kissel was a "controlling" and "demanding" man who abused not only his wife, but cocaine, painkillers, alcohol and his children. Above all, he was uncertain about his sexual identity, looking for male and female prostitutes everywhere he travelled and forcing his wife into performing oral and anal sex day after day over a five-year period.

Her "dissociative amnesia" was used to explain away the series of bizarre "cover-up" she undertook after the murder.

Somehow, she managed to get her husband's body into a sleeping bag and roll it neatly in a large, old rug stuffed with towels and plastic bags.

She called her father in Chicago, saying that she had been beaten up badly by her husband. She gave her friends, her father, and a doctor four to five versions of the events of November 2.

She arranged for the delivery of cardboard boxes, some of which she used to pack away the bloody contents of the bedroom. She hired four Parkview workmen to transport the stinking rug to a storeroom. On November 6, she reported to the police an assault by her husband.

Evidence showed that she had even called her husband's mobile phone twice shortly after the killing. Meanwhile, she had not stopped talking to Del Priore until her arrest in the early hours of November 7. In court, she said she had never seen the lover again, but he was the only one in her life to whom she could open her heart.

Jurors, like the prosecution, found her web of lies too hard to believe. After more than eight hours of deliberation, they found her guilty of murder. The sentence was automatic - life in prison.

"The only person whom Nancy Kissel could not deceive is Robert Kissel. He found out, and he is dead," said Mr Chapman.

*SCMP: The popular guy surrounded by girls who met his match on a Club Med cruise

Robert Kissel dropped a chilling hint to his closest childhood friend about five months before he died that his outwardly perfect marriage was in trouble. After tracking down Daniel Williams through the internet, Kissel sent him several happy family pictures. Wife Nancy was in none of them, although Mr Williams had been at their wedding.

"Rob sent pictures of himself on the beach, one of his three kids, as well as one of his daughter on the beach," Mr Williams said. "I suspect he may have known that his marriage was in trouble then as Nancy was in none of the pictures." Friends like Mr Williams and Kissel's first girlfriend, Carol Japngie, have painted a picture of an attractive man who liked girls, displayed leadership qualities and had a tendency to be controlling. He had tried drugs but hated them, to the extent he would react angrily if he saw anyone using them.

They also told of a "fun" couple who met on a Club Med singles cruise to the Caribbean in 1987 and then started to raise a family in New York while enjoying an active social life with friends, giving no hint of the tragedy that was to follow. Nancy was remembered before their marriage as - like many of her friends - a "sexually social, flirtatious" young woman who wore her naturally brown hair in a blonde bob. As the nightmarish sequence of events unfolded in court, Ms Japngie recalled her own relationship with Robert Kissel, saying: "I remember saying to my mum afterwards that if I had married him, he wouldn't be dead now."

Years before, Robert Kissel had made it very clear to her that they would never have married, however. Even after their romance blossomed into a sexual one on the ski slopes of Vermont, he told her: "We can't be serious because you aren't Jewish," which she understood. They met as sophomores at Pascack Hills High School in New Jersey. Her family had just moved from California and it was not long before she caught the attention of one of the most popular boys in school.

"Robbie was a popular boy and all the girls in our class were attracted to him. I was new and didn't know anyone in the school and Rob and I became best friends," Ms Japngie said. So much so that, six months later at Christmas, she was invited to join him on one of his family's ski trips to Vermont. Robert asked her to be his girlfriend.

"I had a great vacation with his family skiing in Vermont. From the first time we met, his sister Jane and I became close like sisters," she said.

They had sex on the ski trip, although it was not planned. She said she got the idea after finding a condom among suitcases belonging to Robert's father. "I initiated it and it was spontaneous. I think the whole day was leading up to that," Ms Japngie said. "There was more a sense of trust that overwhelmed the apprehension. I guess there was also the thrill of getting caught."

During their two-year relationship, she revealed that Robert didn't mind smoking marijuana, although it would make him pass out. Cocaine was another story. "We both tried coke once. He said, `this is the devil'. He could not swallow and my throat choked up," Ms Japngie said. She doesn't recall exactly when or where it happened, but they were both just about 17 and had crashed a party of 19- and 20-year-olds.

They played darts and pool before someone in the room cut 15 to 20 lines of cocaine on a mirror and passed it from person to person. By the time it reached them, there were only two or three lines left. "Some guy handed the coke to us. I remember he was a big black guy and quite intimidating. Rob said no, and I was poking him, urging him to just go and leave," she said.

Fearful of being assaulted or exposed as gatecrashers, he snorted a line of cocaine. She did the same. "About 10 or 15 minutes later, we were freaking out. Our throats closed up. We looked at each other and we turned white. Our hearts were racing," Ms Japngie said.

When someone broke out lines of cocaine as they drove to the beach after their high school prom in 1981, Robert threw a fit, Ms Japngie recalled. "He stopped the car, got out and wanted to go home by bus or train. He was so pissed off. I spent two or three hours fighting with him, trying to coax him into hanging out. If ever anyone mentioned drugs, he was out of there," she said.

She rejected persistent rumours that Kissel had been expelled from Pascack because of drugs. She said his parents believed he could do better academically elsewhere and his father's ink toner business had taken off, making private school possible. He spent his senior year at the Saddle River Country Day School in New Jersey.

Mr Williams agreed his best friend had not been focused on his studies at Pascack. "He was passing his grades but his parents thought he could do better," he said. The two had known each other since they were two years old, growing up in the suburbs of Woodcliff Lake in New Jersey, but had lost touch in the 1990s. Kissel tracked down Mr Williams using www.classmates.com.

The Kissel wedding in 1989 was the last time Mr Williams saw his friend. His first meeting with Nancy Kissel did not leave much of an impression. "She did not have much to say to me," he said.

Mr Williams described Robert Kissel as a "leader type" who set up a hockey team on his street called the Avon Supersonics. At the Woodcliff middle school, he was the running back and defensive guard on the football team, even though he had been diagnosed with a weak kidney and had to wear a protective pad.

"I thought he was shy around girls," Mr Williams said. Be that as it may, Robert had a string of girlfriends after he broke up with Ms Japngie. First he dated his ex-girlfriend's best friend, Kelly Schwake, although only for a month. She was followed by Nancy Landau and then Jill Canin, a medical student he went out with during his first two years at the University of Rochester.

Nancy Keeshin did not enter his life until around September 1987. He had just got a master's degree at New York University. Nancy had dropped out of the Parsons School of Design after two years. At that time, she had already worked as the floor manager of the Caliente Cab Company, a Mexican restaurant on Waverly Place in New York City, and had switched to the El Rio Grande on 38th Street. Two of her colleagues and friends were waitress Elizabeth Cowey and bartender Bryna O'Shea. "We would often go out and bar hop," Ms Cowey said. "Bryna and Nancy shopped together. I wasn't really a shopper."

In 1989, the Kissels tied the knot at the East River Yacht Club in New York. Ms O'Shea and her husband moved to San Francisco the following year and Ms Cowey married John LaCause in March 1994.

During their New York years, the young Kissel and LaCause families would spend time together. The husbands would sometimes go out to play darts while the mothers stayed with the children.

Mr LaCause said he was aware of arguments early on in the Kissel relationship, especially about money and Nancy's spending habits. However, he believes that the tension between the couple escalated after Mr Kissel extended an initial two-year posting in Hong Kong to what would end up being about six years. "He was only supposed to be in Hong Kong for two years and I know in Nancy's mind, she was only thinking two years," he said. "By the third year, I thought there was trouble in paradise."

"We liked Rob and we had a really fun time together. Rob was a bit more aggressive and more controlling. I never saw that in Nancy," said Mrs LaCause, who was communicating with Nancy two days after her husband's death without knowing what had happened. The last time she saw Nancy was in the summer of 2001, in New York City.

Two years later, Nancy and her children and dog, Daisy, went to Vermont to escape the Sars outbreak in Hong Kong. They returned home in September or October but could not take Daisy with them because of immunisation rules.

Mrs LaCause cared for Daisy until November 3, 2003, when the dog was flown back to Hong Kong.

In an e-mail to Mrs LaCause dated November 4, 2003, Nancy wrote: "Daisy will be here by the time the girls get home from school ... [elder daughter] Elaine is the only one who knows!" Nancy also sent T-shirts for the two LaCause children with their names written in Chinese characters as a thank-you.

Mrs LaCause was unaware that Robert Kissel had been killed until Ms O'Shea phoned her. "I didn't call Nancy at the time and I will probably regret that for the rest of my life. I must have been in shock. I wish I had because I was a friend to her," Mrs LaCause said. They eventually spoke but the conversation was tearful and sad.

"She told me that I don't know how bad it is. She was talking about Rob and how horrible money is and what it does to people. And also about anal sex. She was calling from her lawyer's office so she was not totally forthcoming. She also talked about drinking whisky and cocaine a lot," Mrs LaCause said.

Mrs LaCause added: "If I had a husband who beat me, raped me and sodomised me, I would kill him too."

Update September 3rd

* The Standard: Kissel's lawyers considering appeal
* SCMP: Kissel weighs appeal against conviction

Nancy Kissel may appeal against her murder conviction and life sentence, her lawyer said yesterday.

Alexander King SC said after a post-trial hearing that an appeal was being considered.

Prosecutor Peter Chapman also said he did not expect the case to be over yet.

"It is only chapter one of the Kissel case. Chapter two will start on the third floor of this court building - the Court of Appeal," he said. "The fat lady has not started singing yet."

Kissel, 41, on Thursday was sentenced to life imprisonment for drugging her husband, senior Merrill Lynch banker Robert Peter Kissel, with a sedative-laced milk- shake and bludgeoning him to death with a lead ornament in their Parkview home on November 2, 2003.

Michigan-born Kissel was back in the dock yesterday, looking pale-faced and red-eyed, as counsel discussed the most contentious exhibit in the case, a baseball bat.

Mr Chapman argued that defence should shoulder part of the prosecution's costs as a lot of court time was wasted because Kissel's lawyers did not inform them of the existence of the bat until midway through the trial. A number of witnesses had to be recalled as a result.

During the trial, the defence alleged Robert Kissel had used the bat to beat his wife before the killing.

Mr Justice Michael Lunn ruled out the request for costs, saying the delay in producing the bat had not resulted in a trial adjournment.

The public gallery, which had been packed for weeks, looked bare yesterday as only journalists, Kissel's mother, Jean McGlothlin, and some close friends attended the hearing.

Ms McGlothlin kept looking at her daughter, weeping from time to time. But Kissel smiled after Mr King went to speak to her in the dock before she was taken away by guards.

Prosecution exhibits - including many bloody items - were returned to the Aberdeen Police Station in a van with four masked workmen.


* SCMP: The last days of a man who "had everything"
On Sunday, November 2, 2003, Robert Kissel must have felt the weight of the world on his shoulders. Only those close to the couple knew of the problems in the marriage, of wife Nancy's affair, and Robert's decision to talk to Nancy about getting a divorce that evening.

But on top of this he was preparing a bid for the biggest buyout of bad debt in Asian financial history. Since mid-September Robert had been working 14-hour days preparing to make a bid for $14 billion in non-performing loans from the Bank of China, which involved careful analysis of thousands of non-performing loans.

The competition was hot. This deal was considered a seminal moment in an industry that had blossomed in the wake of Asia's financial crisis in 1997 and 1998. And everyone wanted a slice.

"It was historic. This was truly the moment, and we all wanted to be there," said Joseph Draper, head of Asia Principal Investments with Citigroup.

Robert Kissel was portrayed in court as a debonair banker who loved the power, money and status of his job. But according to his colleagues, he was far more a humble, "jeans and T-shirt guy" who was more of a number cruncher with a sharp brain and an eye for detail than one renowned for long lunches and flashy suits. "Whether you spoke to Rob at 3am or midday, he was always sharp as a nail," one colleague said.

Robert had to be. In his line of work, one bad decision, one small factor of a loan not properly analysed, meant your company could lose millions, leaving your professional reputation in ruins.

At 9.30am that Sunday, Robert was as sharp as ever. The family was at the United Jewish Congregation. Nancy Kissel, far from the dour character slumped in the stand of the High Court during her three-month trial, was, as ever, the picture of blonde glamour and elegance - with her trademark dark sunglasses.

She was, as usual, loud and full of energy, and looking great with a $5,000 cut and colour from the Debut hair salon in the luxury Parkview estate where the family lived.

On the surface, they could have been the perfect family. But beneath the surface was the pressure of a failed marriage, disruptive children and the debt deal that would have cemented Robert at the top of his game.

Rabbi Lee Diamond led a discussion on some anti-Semitic comments made by outgoing Malaysian prime minister Mahathir Mohamad at his resignation speech, and Robert Kissel featured prominently in the discussion. His Jewish identity was important and he wanted his children to grow up proud of their heritage.

The United Jewish Congregation in Hong Kong is a powerful organisation, so it was no surprise that some of the key players in the Bank of China deal found themselves talking shop while waiting for their children to finish Sunday school.

Hong Kong's distressed-debt community is largely American, experts who developed their skills around the world and moved to Hong Kong to exploit the Asian financial crisis of 1997 and 1998, as Robert Kissel had done.

Robert and Clifford Chance lawyer Jonathan Zonis, who was working with Merrill Lynch on parts of the deal, found themselves talking to Jonathan Ross, from the Bank of China, and Ian Johnson, of Allen and Overy, who was working for another competitor.

"Rob was saying the field of distressed debt was more competitive than it had ever been and at the same time, he was perhaps more open about the transaction than I thought he would have been," Mr Zonis recalled.

The men were surprised about how frankly Robert, normally the consummate professional, discussed the deal, even outlining some of the financial detail of the bid. He gave Ross a "hard time" about the information the bank had provided him with, outlining some problems with the documentation.

Sunday school ended. Robert, always the family man, stopped talking to hug his children, whom he adored. Those children were described by family and friends as warm and lively, but also "high-maintenance".

One mother close to the family said Nancy was often oblivious to some of their faults - especially son Reis, whose behaviour was concerning teachers at Parkview International Primary School.

In the last week of October 2003, the bid for Bank of China was supposed to take place. But it had been delayed, and many of those working for Merrill Lynch, Goldman Sachs, Citigroup, Standard Chartered and Morgan Stanley and various legal teams found themselves in Lan Kwai Fong looking for a quiet beer. They gravitated to Stormy Weather, a bar many now choose not to visit.

It was on this occasion that Robert Kissel chose to tell many that his marriage was over, that his wife was having an affair and he was planning a divorce.

The moment he revealed the end of his marriage was described by one senior banker as "climactic", uttered quietly by a man without colour in his face, who had tried his best against insurmountable odds, but was now finally throwing in the towel.

He would not even challenge for custody of his beloved children as long as he was given access.

However, the pressure of the Bank of China bid put the revelation firmly in the backs of the minds of those who were there.

On the Sunday night, the bidders called each other, wishing the best for the following week.

Robert did not answer his phone or return calls, but they knew he would be dealing with a much more important issue - the end of his marriage.

Then, on the Tuesday of the bid, Robert Kissel was not there - only David Noh, who made excuses for him.

But again, those close knew there were serious problems at home, and accepted Nancy's version - that her husband was "very, very sick".

Nancy had been working on the World's Fair for Hong Kong International School, but e-mailed children's entertainer Scotty to cancel a meeting on the Monday.

On Monday afternoon, she visited her favourite shop, Tequila Kola, to buy rugs to replace the one she would use to wrap her husband's body.

That week, Nancy had also been in charge of preparing invitations to a formal fund-raiser for the synagogue. On Tuesday, close friend Samantha Kriegel phoned to see how the invitations were going. She sensed Nancy was not herself and said she would come over.

But Nancy declined, and said to her: "Listen, don't tell anyone, but Rob is very, very sick, but I haven't told the kids yet."

Ms Kriegel was shaken by Nancy's statements and called Robert Zonis' wife, whom she told what Nancy had said. Mrs Zonis repeated the comments to her husband.

"We were shaken by this news because we had seen Rob on Sunday and he had seemed the picture of health," Mr Zonis said.

"The rumour didn't make sense, but it would have been inappropriate to call Rob as we were right in the middle of a massive deal and I was representing a competing bidder. It might not make sense in hindsight, but that was the last I thought of it until the next day, when I heard he had been killed."

On Friday, November 7, Robert Kissel's colleague and confidant, David Noh, began making a series of phone calls that would devastate a community. "We just want to let you know that Rob is dead and the police suspect that it was a domestic incident," he said in a quavering voice to one member of the elite circle the family moved in.

There had been other hints in the lead-up to November 2 that all was not well.

A husband and wife, who barely knew the Kissels, had been invited over to a family dinner. "At the time, I thought it was really strange, because we didn't even know them," the guest said. "But now, thinking back, maybe Nancy just wanted people around the house." The Kissels spent the dinner openly quarrelling, and the wife said to her husband "if you spoke to me like that, I'd slap you across the face".

When Nancy came back to Hong Kong from Vermont, after the Sars crisis, she liked to "shock" friends by pulling down her shirt and revealing new tattoos, in Chinese characters, of the years her children were born.

"She enjoyed the shock factor. You could tell that Rob was not impressed by this," a friend said. "She said that in Vermont she had wanted to do something a little bit wild."

On Friday, November 7, a small group gathered in the Kriegel living room to try to come to terms with the shocking events. "You can't understand the devastation this has caused," Mr Zonis said.

"It is beyond shock. We were all in our late thirties to early forties, with beautiful young families, at the top of our careers with everything going right in our lives. And then this happens.

"These were people who seemingly had everything. We sat in stunned silence trying to make some sense of this. I'm not sure we have learned any more answers now than we did then."

Update September 5th

* SCMP: A trial and a show

An advertising executive retorted loudly across a Central bar that reading the daily twists, turns and salacious allegations made in the trial of Nancy Ann Kissel for the murder of her husband Robert was "the only thing that got me out of bed in the morning".

While the daily fix is over for this particular high-flyer, Nancy Kissel has now had four days to contemplate a life sentence behind bars, while the fallout from her shocking crime continues in Hong Kong and the US.

Labelled Hong Kong's trial of the decade, the revelations over the past 2-1/2 months in the Court of First Instance have had a firm grip on much of Hong Kong's expat community, with the events that led to Robert Peter Kissel's murder in the couple's luxury apartment on November 2, 2003, leading to endless innuendo, speculation and wild gossip at social gatherings across the city.

But it was a different story for those close to the family. Nancy Kissel's accusations brought a mixture of disgust and disbelief to those who knew the family. "I think many of us realise this defence she was running has never been about what really happened, but about keeping her out of jail," one close family friend said.

Another said there were times when he had to lock himself in a room and scream because he was so angry at the "unfounded" allegations Nancy Kissel was making against her husband. "This woman was clearly a bad, angry person," he said. "I would be frightened to be close to her. Even [her lover Michael] Del Priore must be thanking his lucky stars he got out of there alive."

Another colleague said: "The defence didn't help either. There seemed to be this suggestion that it was `strange' he was talking to his work colleagues about the problems in the marriage. Who else was he going to talk to?"

But most tuned in to see if Robert Kissel, whose hard work had seen him scale a very tall earnings tree with his employer Merrill Lynch, was really a drug and alcohol-fuelled sociopath who battered his wife and forced anal sex upon her. They also tuned in to see whether this sordid defence could keep Nancy Kissel, who had admitted to killing her husband, out of jail - "imagine if she walks?"

It was these grubby details early in the case which saw Nancy Kissel lose sympathy or support from most of those close to the family. They have been furious about the slandering of Robert Kissel's character by his wife - and the terrible legacy that leaves for the children.

"Kissel used cocaine and beat his wife? Well, while no-one can ever see behind closed doors, he was just not like that," said an associate who worked on numerous deals with the banker. "Sure, he was a wild child in his day, but Robert had become the most dedicated family man you would ever meet. The only boozing was maybe one or two beers at Lan Kwai Fong now and then."

Another concern has been the damage done to the Kissels' three children, who are now back in the US and likely to be subjected to a custody battle. One mother, whose children were friends with the Kissels' two daughters and son, saw the children recently and said that while they seemed to be doing well, the psychological scars were likely to be deep.

The murder also forced many parents whose kids knew the popular Kissel children - Elaine, June and Reis - to confront the prickly subject of murder with their children.

One witness in the trial said his daughter had discovered Robert Kissel's brother, Andrew, was facing trial for fraud before he did. "She was right on the ball with the case and followed every twist and turn," the witness said.

Nancy Kissel's supporters and visitors came largely from the Hong Kong International School. One, Geertruida Samra, president of the Parent Faculty Organisation, helped with her bail and regularly visited her in Siu Lam psychiatric centre after the murder.

Some of Robert Kissel's friends were also reportedly behind his wife. Jim Laurie, a distinguished former journalist and University of Hong Kong lecturer, along with a number of his students, stood firmly by Nancy Kissel's mother Jean McGlothlin.

As the tension mounted when the jury was deliberating, Mr Laurie lashed out at the police investigators, claiming the crime scene was not sealed. He became involved in a heated argument with the deceased's father over evidence and questioned whether the children would be cared for.

"What puts you in a position to judge? You are a local Hong Kong guy trying to ride the coattails of some notoriety," William Kissel said, accusing Mr Laurie of wanting to cash in on the murder with a book.

While many observers might have their own theories on whether the 41-year-old housewife was guilty or innocent, it was only the opinions of the five men and two women who made up the jury that mattered. And they had much to consider in the case now called "the milkshake murder" in headlines around the world.

By the fourth day of Nancy Kissel's testimony, the courtroom was packed, as lawyers, students and domestic helpers scrambled for the 60 available seats. They were often joined by "Parkview wives", who had come to see the downfall of one of their own.

The court was forced to impose crowd-control measures, asking the public to queue in an orderly manner before entering the courtroom. Two marshals were used to guard the entrance, and belongings used to reserve seats over lunch were removed.

By August 8, eight weeks after it opened, Nancy Ann Kissel's murder trial was the biggest show in town.

Hong Kong's English-language press, including the South China Morning Post, picked up the early interest in the case and ran extensive reports as the saga unfolded.

Coverage from news wire services has seen the case run in national papers from The Daily Telegraph in London and The Scotsman, to The New York Times, The New York Post, The Washington Times and The Boston Globe in the US.

But apart from the prosecutor's opening, the first day of the defence and some evidence, much of this international interest has not been reflected in the highly competitive Chinese-language press. Reporters from many of the city's top dailies said they were "frustrated" at the lack of interest shown in their work by their editors.

Associate professor of criminal law at the University of Hong Kong, Simon Young Ngai-man, said cultural as well as language barriers were the main reasons the trial had not attracted such a high level of interest among the Chinese community.

However, those same reasons were the prime draw for expatriates in Hong Kong.

The trial featured one of Hong Kong's best prosecutors facing one of its best defence lawyers, in English, without the hindrance of translations.

"We have a female who is accused of murdering her husband, a leading member of Hong Kong's financial community," Mr Young said. "They are members of the elite, upper crust of the expat society in Hong Kong. These are people who do not normally display any form of criminality - at least not in public, anyway.

"The community feels they are getting a glimpse inside the private world of two people, finding out intimate details of their lives, even down to what websites they surfed."

The people who regularly made their way to the packed public gallery formed an eclectic group. Among them were retirees, those with an "unnatural fascination with death", while some claimed to be writing a novel or magazine piece on the case. They are unlikely to be the only ones who will try.

What many spectators shared was a touch of embarrassment that their interest in the trial prompted them to sit through days of evidence over the past two months.

"Perhaps one of the main reasons I'm here is because I have an interest in murder," said one local observer, who asked that his name not be published. "And there has never been a trial like this in Hong Kong, at least not in my lifetime. It's like it has been scripted for a movie, but the story is one you wouldn't believe."

Another spectator, who also wanted anonymity, said her interest lay in the uniqueness of the case. Even when she left Hong Kong for her native India, she closely monitored the daily revelations on the internet. "There has never been a trial like this involving the expat community, at least not in the past 20 years," she said.

But although she watched the trial closely, she admitted that she sometimes felt sorry for the families involved, and wished the court had been closed from public view.

Nevertheless, it did not stop her returning to the court controlled by Mr Justice Michael Lunn to witness the final outcome.

Update Sept 8th

* Sign On San Diego: Kissel to appeal.
* Next magazine article (translated by ESWN)
* Eastweek magazine article (translated by ESWN)
* SCMP:

Police have closed investigations into the murder of investment banker Robert Kissel and, contrary to reports, are not pursuing inquiries into his wife's lover, Michael Del Priore. Nancy Ann Kissel, 41, was convicted last week of murdering her husband by drugging him, then bludgeoning him to death. She rolled his body in a carpet and had it stashed in a storeroom on the Parkview estate where the couple lived, the court heard.

Prosecutor Peter Chapman suggested during Kissel's trial that she killed her husband with her lover's "tacit support" and planned to flee into his arms after the crime.

Western District police commander David Madoc-Jones yesterday dismissed as "incorrect rumours" reports that police were investigating Mr Del Priore. But he confirmed police did explore a link between Kissel and Mr Del Priore at the start of their investigation, and found no evidence suggesting any direct link between the Vermont-based TV repairman and the crime.

While police have telephone records showing Kissel talked to Mr Del Priore before and after the November 2003 murder, they have no way of knowing what passed between them.

Immigration records show Mr Del Priore was not in Hong Kong either before or after the murder. "Unless they decide to tell us what was said in those conversations, and in the absence of any direct evidence, there is nothing we can do," Mr Madoc-Jones said.

William Kissel, Robert's father, said there was no doubt in his mind that Mr Del Priore played a role. "It is all there in the evidence and in the interview in the South China Morning Post," Mr Kissel said. Mr Del Priore's brother Lance recalled telling his brother: "You must have had something to do with this."

The killing shocked Hong Kong and many found the trial enthralling.

Kissel's lurid defence - that her husband was addicted to cocaine, drank heavily, beat her and persistently demanded rough sex, and that his actions drove her to kill him - made headlines around the world. She pleaded not guilty to murder but a jury of seven found her guilty at the end of the near three-month-long trial and Mr Justice Michael Lunn imposed a mandatory life sentence.

Kissel's legal team are considering whether to file an appeal against her conviction for murder and life sentence.

Update 29th September

* Bloomberg: Nancy Kissel appeals murder conviction, lawyer says.
* SCMP:

Nancy Kissel, jailed for life early this month for the murder of her wealthy banker husband, yesterday lodged an appeal against the High Court ruling.

It is understood the grounds of the appeal are extensive, encompassing a number of the rulings during the course of the three-month trial. It will also challenge the summing up of the evidence and the directions given to the jury by the trial's judge, Mr Justice Michael Lunn.

The High Court confirmed that the papers were yesterday filed by the firm of Kissel's solicitor, Mallesons Stephen Jaques, but there were no further details. The prosecution said Kissel, 41, drugged Robert Peter Kissel, a senior Merrill Lynch banker, with a sedatives-laced milkshake before bludgeoning him with a heavy metal ornament in their luxury Parkview flat in November 2, 2003. His body was found rolled up in an old carpet in a storeroom in the Tai Tam complex. Michigan-born Kissel admitted killing her husband but argued she acted in self-defence after he threatened to kill her and take away their three children.

A jury of seven unanimously found her guilty of murder on September 1. Mr Justice Lunn sentenced her to life, as required by law. Kissel is now imprisoned in the Tai Lam Centre for Women in Tuen Mun.

The hearing of the appeal is expected to begin in about nine months at the Court of Appeal.

Meanwhile, the custody hearing over the three Kissel children between Jane Clayton, the victim's sister, and Hayley Kissel, his sister-in-law, will begin later this week in New York City. The children, who are under temporary custody of Hayley Kissel, will inherit up to US$18 million from their father's estate.

October 5th

* SCMP:

Nancy Kissel is to be consulted in her Hong Kong prison cell on the future care of her three young children. This emerged as a judge in the United States denied an application for emergency guardianship by a sister of Kissel's slain husband, Robert.

Judge Eve Preminger urged relatives to try to settle differences over custody of the children in the next two weeks. She said she also wanted input from Kissel, 41, who is serving a life sentence in Tai Lam prison for murdering her husband. Judge Preminger admitted she was likely to give custody to Robert Kissel's sister, Jane Clayton, whose lawyer had sought the emergency guardianship order.

The children - Elaine, Hannah and Reis - are now staying at the Greenwich, Connecticut, home of Ms Clayton's brother Andrew and his estranged wife, Hayley, whose once prosperous household is collapsing under the strain of fraud charges that could leave Mr Kissel unable to provide for the children.

"All things being equal I would like to have a period limited to two weeks to obtain the information from Nancy Kissel and to ensure that there is a professional psychiatric evaluation of the children," Judge Preminger said at a hearing in the Manhattan Surrogate's Court in New York.

Ms Clayton's lawyer Randy Mastro - who had earlier described the children's situation as an emergency - toned down his stance on Monday but called for a swift resolution in his client's favour.

"That household has a lot of problems and these kids have been through a lot," he said.

The input from Kissel will be decisive for the children's future.

"She has a say," said lawyer Nat Dershowitz, who acts for Hayley Kissel. "She is the natural mother - she is the only one who has a say as to who takes care of her children."

The custody battle over the children, aged five, eight and 11 - who stand to inherit their father's fortune, estimated to total US$18 million - is the latest twist in a saga that first saw them shunted from Hong Kong to stay with their maternal grandfather in Illinois.

They moved into the luxury home of Andrew and Hayley Kissel after he won temporary custody.

Eighteen months on, however, the children look set to leave the retreat which shielded them from events in Hong Kong, according to Mr Mastro and Michael Collesano, a lawyer appointed by Judge Preminger to look after the children's interests. Mr Collesano also advocates Ms Clayton be granted custody.

Andrew Kissel is confined to his home after being bailed on the fraud charges. His wife is seeking a divorce.

October 20th

* The Standard: Victim's sister appointed guardian of Kissel children.
* SCMP:

An American judge who had sought Nancy Kissel's view on the future of her children has declared the convicted murderer's opinion worthless and ordered the two girls and a boy be moved from the custody of one aunt to another. Overruling a strong written plea from Kissel for the children to stay with Hayley Kissel, estranged wife of the brother of slain banker Robert Kissel, Surrogate Judge Eve Preminger awarded guardianship to Jane Clayton, the banker's sister.

The New York judge said Nancy Kissel - serving life in jail for killing her husband - was the "lone voice" opposing the move and "would seem to have forfeited my belief in her good judgment based on the actions she was convicted of".

After the ruling, a tearful Mrs Clayton said she was "thrilled with the result", which was in tune with a request in Robert Kissel's will that his sister be made guardian and custodian of the children. Apart from Nancy Kissel, all parties to the protracted battle for custody of the children - heirs to their father's estimated US$15-$18 million fortune - had agreed they should be cared for by Mrs Clayton.

Hayley Kissel, who had temporary custody and had been fighting to keep the children, agreed to act according to whatever was deemed to be in their best interests. The judge had earlier adjourned the case for two weeks, urging the parties to sort out their differences and asking for Nancy Kissel to be consulted.

In her letter to the court yesterday the woman convicted of drugging her husband, then bludgeoning him to death with a heavy ornament in their Parkview flat, pleaded for the children to be spared the pain of another move. "The fact of the matter is my children are not in harm's way emotionally or physically right now," she wrote. "Children understand love. They don't understand change. Loving families don't turn on each other. They support one another."

Calling the assembled lawyers into her chambers for a 35-minute consultation, Judge Preminger announced that Mrs Clayton was the only one now seeking custody and guardianship and so should be named guardian in the best interests of the children. Mrs Clayton will oversee the financial interests, property holdings and legal matters of the three children: Elaine, 11, June, eight, and Reis, five. However, she will not be able to take physical custody of the children immediately. Background checks are needed first, after which a ruling will be made. A hearing is scheduled for November 2.

Michael Collesano, a court-appointed lawyer looking after the children's interests, said: "We are very pleased with the results, which, in my opinion, are in the children's best interests." Mr Collesano had urged that Mrs Clayton be made guardian, citing the potentially damaging environment in Hayley Kissel's once prosperous household, where husband Andrew has been indicted on multimillion-dollar theft charges and she has sought a divorce.

It will be the third move for the children since their father was murdered in November 2003. They first stayed with their maternal grandfather in Illinois, before Andrew and Hayley Kissel were awarded temporary custody.

Since then, Mr Kissel has been indicted on grand larceny charges claiming that he stole US$3.9 million from the Upper East Side co-operative apartment building where he was treasurer for six years and is under house arrest.

Neither Mrs Clayton nor her lawyer would comment on how the delicate task of telling the children about the latest upheaval in their lives would be handled.



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[boomerang] Posted by Simon at 08:31
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» Phil links with: Nancy Kissel
» Flying Chair links with: Nancy Kissel - Guilty as Charged




October 19, 2005
Socialist political democracy

This should be good. The People's Daily reports a new white paper from the Information Office of China's State Council, titled Building of Political Democracy in China. With a straight face, we're told about the virtues of "socialist political democracy":

In building socialist political democracy, China has always adhered to the basic principle that the Marxist theory of democracy be combined with the reality of China...In the process, China has also borrowed from the useful achievements of the political civilization of mankind, including Western democracy, and assimilated the democratic elements of from China's traditional culture and institutional civilization.

Therefore, China's socialist political democracy shows distinctive Chinese characteristics.

It certainly is distinctive. Let's have a look at some of the characteristics of this distinctive democracy:
-- China's democracy is a people's democracy under the leadership of the Communist Party of China (CPC).

-- China's democracy is a democracy in which the overwhelming majority of the people act as masters of State affairs.

-- China's democracy is a democracy guaranteed by the people's democratic dictatorship.

-- China's democracy is a democracy with democratic centralism as the basic organizational principle and mode of operation.

The white paper says the CPC's leading status was established gradually in the protracted struggle and practice of the Chinese people in pursuing national independence, prosperity and a happy life.

It was a choice made by history and by the people.

If you're still with me, there's also the white paper's plan for the future improvement of this wonderful system:
improve the socialist democratic system, strengthen and improve the socialist legal system, reform and improve the methods of leadership and rule of the CPC, reform and improve the government's decision-making mechanism.

The white paper also stresses the importance of the reform of the system of administrative management, the reform of the judicial system, the reform of the cadre and personnel system, and the restraint and supervision over the power.

Does it make sense? Is it self-contradictory? Is it worth the price of the paper it's written on?

Ask the people of Taishi.

Update (10/21)

The Useless Tree reflects on "authoritarian democracy" and the umbrage Confucius would have taken..

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[boomerang] Posted by Simon at 19:24
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» Winds of Change.NET links with: China, democracy and a place called Taishi




Investing in China's banks

The China Economic Quarterly, always a good read, has several interesting articles in its latest edition. Over the next few days I'll post some excerpts of some of the more interesting pieces. One makes some telling points on the recent strategic investments in some of the big state owned banks:

The three biggest Chinese banks now all have their foreign dance partners. Herewith a few random thoughts inspired by this orgy of risk-taking:
• It is noteworthy that the banks with the widest experience of and exposure to China – HSBC, Citibank, Standard Chartered, and the French banks – are nowhere to be found on the list of investors.
• The government of Singapore (via its vehicle Temasek Holdings) is now the biggest overseas investor in the Chinese financial sector, with commitments of US$4.6bn.
• HSBC’s acquisition last year of 19.9 percent of the Bank of Communications is looking better and better. HSBC paid a lower price (US$1.7bn) for a bigger take in a better bank. Bocom is a smaller institution with a more commercial management and a heavy concentration of assets in the most dynamic part of China (the east coast). HSBC got two seats on the Bocom board, compared to the one that the new set of strategic investors will get in their respective institutions.
• The three deals effectively assign the same value to all three Chinese banks – about US$30bn. Perversely, this means that the worst bank – Industrial and Commercial Bank of China (ICBC) – is valued at the biggest premium, 50 percent above end-2004 book value of US$20bn.
• In ICBC’s case, the implicit value of US$30bn exactly equals the amount of new capital it received from the government this year. In the case of Bank of China (BOC) and China Construction Bank (CCB), the price tag is only slightly more than the total value of government assistance received in the past two years.
• Large investments by Merrill Lynch, Goldman Sachs and Allianz are predicated on those institutions offloading most of the risk on to private equity and hedge fund investors who will be expected to buy into China bank funds. This should produce some interesting road shows between now and the BoC and ICBC IPOs.

Clearly, none of these investments makes sense in a plain commercial way. What are the ways in which they do make sense? First of all, the investments are in essence capital-guaranteed. All three banks are linchpins of China’s financial system, and thus “too big to fail” and beneficiaries of an implicit sovereign guarantee. Even this was not enough, however, and Royal Bank of Scotland received warranties that would effectively prevent the value of its position falling below the purchase price even if Bank of China’s net asset position deteriorates. Bank of America is believed to received something similar for its CCB stake.

Second, it is just conceivable that plunking down a fat wad for a stake in a big stateowned bank will prove a more cost-effective way to enter China’s banking market than laboriously building up a branch network. Each new branch requires minimum capital of Rmb400m (US$49m). With the number of branches effectively limited by this high capital requirement and the slow rate of new-branch approval, foreign banks find it almost impossible to raise enough renminbi funds. They must therefore buy funds from Chinese banks (on a bilateral basis, since the interbank market is in its infancy). This means that foreign banks face an effective cost of funds of over 4 percent, about two percentage points higher than Chinese banks’ cost. A strategic investor, however, might be able to source funds at a lower rate from its partner, and try to run its China business from two or three branches in major markets.

As far as I'm aware, retail investors in CCB's IPO don't qualify for these puts.

Update (10/20)

Victor Shih says perhaps these investors don't have puts, rather a guarantee re book values.

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[boomerang] Posted by Simon at 18:50
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Daily linklets 19th October

The Donald comes to China edition...

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[boomerang] Posted by Simon at 16:34
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Silver lining in the Taishi cloud

Whether it is directly related to the recent events in Taishi or not, at least there is the appearance of something good coming out of the whole thing. The SCMP:

Guangdong authorities have pledged to comb through the accounts of every town, village and village group in the province to clear up financial irregularities at the grassroots level...Villagers and farmers lodged about 150,000 petitions with provincial authorities in the first eight months of this year, most relating to alleged corruption over rural land acquisition, problems in village committee elections, and land and forest ownership disputes, the News Express reported.

"These problems have encroached on the interests of the masses, sharpened social inequities, damaged the stability of grass-roots regimes and undermined the reputation of the party and the government," the newspaper quoted the inspection committee as saying.

Guangdong has also promised to improve the way towns and villages are managed, particularly in terms of finances and cadre supervision. The changes mean party and government officials will not be allowed to have part-time jobs or receive payments from state-owned, collective or private enterprises..."Chinese villages lack professional accounting personnel and a standardised financial management system," Professor Xu said.

Dang Guoying , a rural affairs analyst, said the root of rural financial corruption was the village committees' excessive power over finances.

The SCMP's got substantial coverage of the Taishi incident, including a good summary by Leu Siew Ying, a fawning piece on Lu Banglie, an op-ed by Peter Goff on the dangers for Chinese citizens working with foreigners, a point already well made by ESWN last week and a piece by Simon Parry also on the constraints of mainland reporting and the flaws of the international press, starring Jonathan Joffe-Walt and Lu Banglie. While I often have a go at the SCMP, this time they are doing a good job of covering an important story. The articles are reproduced below the jump.

From village protest to national flashpoint

The scourge of corruption has turned Taishi's experiment in grass-roots democracy into a display of people power.

Taishi is a tiny village in the richest and seemingly most open province on the mainland and yet a legitimate attempt by its residents to oust their chief for corruption has been crushed with the help of gangsters. The crackdown exposes the ambiguity of the central government's stance on democracy and underscores its fear that Taishi might have a domino effect in a region riddled with land-related corruption.

But Taishi is, at most, a localised corruption scandal that permeated the township government and is unlikely to implicate anyone in Guangzhou, much less in Guangdong or far away Beijing.

With a population of 2,000, Taishi is a 45-minute drive south of Guangzhou. Once a model village, its inhabitants complain of poverty, even though bustling shops, busy factories, thriving sugar cane farms and banana plantations stand on land they used to farm.

Elderly women have been the hardest hit. They are unable to support themselves from the dividend income from leased properties and farmland, and have been forced to eke out a living by scavenging.

The villagers blame their plight on Chen Jinsheng , who was re-elected as village chief in April. Mr Chen garnered 60 per cent of the votes, but the poll came before allegations that he had embezzled funds from the village collective.

On July 29 they launched a campaign to remove him from office by popular vote. During a three-month stand-off that followed, local authorities, using more than 1,000 police and water cannon, threw villagers in jail, seized ledger books and paid thugs to beat activists, lawyers and foreign reporters.

They rejected the recall petition, then announced it had been accepted, only to announce soon afterwards that the villagers had given up their action. The people are now being held hostage in their own village.

Sources with close contacts with villagers say groups of cadres fanned out to visit each of the 500 households to make them sign the withdrawal document.

"Every household has somebody who has been arrested. They were promised that their family members would be released if they signed, if not, they would go to jail for three to 10 years. The villagers are realistic, so they signed," one source said.

The family of Feng Weinan , one of the leaders arrested, received a notice saying power and water supplies to their apartment would be cut off. Other villagers were told they would lose their jobs, their children would not be able to go to school or they would be harassed by thugs.

"Their wives were crying, so the men had to sign," said Lu Banglie , an activist who advised the villagers on recall procedures.

Mr Lu said cadres promised a household of four or five voters about half a hectare of land if they would spy for the village committee and help keep Mr Chen in power.

The villagers were also told that lawyers and reporters had wrecked their economy and they would get no dividends this year. Previously, the committee that manages village assets paid each villager 1,000 yuan a year and claimed that Taishi was in debt.

A propaganda official from Yuwotou, the town that administers Taishi, told two foreign journalists that 396 villagers signed the withdrawal statement voluntarily after an audit of village accounts cleared Mr Chen. Only 188 refused to sign.

Giving the reporters a copy of the Guangzhou Daily, he said: "Everything we want to say is here. You can also read about it in the Southern Metropolis News and other newspapers. There is no need to report on this any more. We will not give any more interviews."

The official statement said the recall petition was legal, a move that analysts said gave the authorities justification to break the blockade of the village office and seize account books allegedly incriminating Mr Chen on the grounds that the villagers had broken the law and obstructed village government.

The next move was to identify the "black hands" behind the unrest: Mr Lu, Yang Maodong - a prolific writer and activist better known as Guo Feixiong - and Ai Xiaoming , a gender studies expert at Sun Yat-sen University, who was interested in the involvement of women in the Taishi struggle.

Mr Yang has been taken into custody and Mr Lu was beaten up, but Professor Ai is still free, though her website has been shut down.

The village itself is guarded by mercenaries who are paid 100 yuan a day to beat up any foreign visitors, while the local media has been muzzled.

Analysts believe that Taishi started off as a test case for grass-roots democracy because Premier Wen Jiabao said last month that if people could manage a village, they could manage a township in several years and that would be "an evolving system".

Pro-government scholar Fan Yafeng drew attention to Taishi's significance, strengthening the argument, and yet a local government source said there had been no directive to push for grass-roots democracy.

Cheng Li, professor of government at New York-based Hamilton College, said the central government had called for an experiment and so could not crack down on it.

"I don't think we can put it down as a crackdown, but they think there is something wrong with the experiment. I don't go as far as to say that they are ready for democracy," he said. "They want to push for democracy but they want to be their own monitor."

In the first eight months of this year, the Guangdong discipline commission received 150,000 complaints about corruption, cadre misconduct or election irregularities, an average of seven per village in the province.

"I've heard that many villagers went to Taishi to learn from their experience," one mainland expert in grass-roots democracy said. "If Taishi succeeded, they would do the same."

Mr Yang, on the lookout for opportunities in the Pearl River Delta, saw the legal issues in the land deals and was able to persuade villagers they had a problem.

Taishi captured international interest because Mr Yang had an action plan to use passive resistance, hunger strikes and the foreign media to raise the profile of the dispute.

The timing was opportune because the director of Yuwotou, which administers the village, had just been reassigned to another town, leaving a young deputy to hold the fort.

From a run-of-the-mill attempt to recall a village headman, the situation in Taishi deteriorated to such an extent that Beijing stepped in and designated it an important political incident.

"It has acquired the same status as the Sars outbreak in 2003 and the Falun Gong," one scholar said.

But Guangdong, living up to its reputation as a renegade province, chose to maintain a degree of independence, which might help explain the handling of Taishi.

Despite the crackdown, Mr Lu described Taishi as a success.

"Taishi shows the world the ugly side of local government and teaches villagers the value of their votes," he said. "In the past, they thought that whoever you vote for, it makes no difference. They sold their votes for 100 yuan or a pack of cigarettes."

Mr Lu believes that the Taishi villagers will prevail against their village chief in the next election in three years' time. And he predicts that if the party is supportive, grass-roots democracy could be a reality in three to five years. "If not, it will take 20 years."

Dangers of working with foreigners

Beyond the daily drill of research, press conferences and interviews, foreign journalists in the mainland are inadvertently mired in a menacing world of intrigue and espionage. But the danger is, for the most part, not directed at them, but rather at the people who co-operate with them as they gather news. The mainland is not the world's greatest fan of media scrutiny, to say the least. The foreign press corps have always had to deal with the likes of none-too-secret agents on their tail, phone taps, bugged offices and local employees who are encouraged to operate as government spies.


All that is still in place. But the methods of surveillance have become more sophisticated - if not always more subtle. A European journalist on a recent reporting trip to the central provinces was using her mobile phone to try to track down a local activist. While she was talking, a voice broke into the conversation and scolded her for sticking her nose into local affairs.

Another journalist tells of how she interviewed a source in a noisy local restaurant one evening. The next day her mobile rang and she heard the last voice she expected: her own. The call was a recording of her conversation in the restaurant. She has no idea if it was some kind of bounce-back blip in the hi-tech spying game, or whether it was spooks wanting to let her know they were on her case. Either way, it was a jolting reminder of the system's invisible eyes and ears.

The latest technology that is pleasing spies and jealous spouses alike is a chip that can secretly turn a mobile phone into a microphone. Security experts say the phone's software is adjusted so that when the phone is called from a certain number, it will answer automatically without ringing, vibrating or lighting up - essentially turning it into a bugging device.

All this, and the many other hi-tech eavesdropping and tracking devices now available, can spell danger for the sources who talk to journalists and the Chinese people who work with them. Foreign reporters here are sometimes hassled, impeded from doing their work, forced to sign self-criticisms and, in some cases, threatened or even roughed up.

But it is very rare that their lives are endangered or their freedom jeopardised. For Chinese it is a very different matter. On any kind of sensitive issue sources, news assistants, photographers, support staff and the like run a far greater risk of being beaten, imprisoned or worse, for helping foreign reporters. Their attackers are often thugs who have been hired to do the dirty work.

This reality places a "huge burden" on journalists based on the mainland, according to Melinda Liu, Newsweek magazine's Beijing bureau chief and president of the Foreign Correspondents' Club of China. "It is a very big issue for us," she said, as before doing any story they must first evaluate who is going to be involved and assess what danger they might be exposed to.

"We have to figure out if it's worth taking the risk," she said. "There are some stories we just won't do because we feel it's too dangerous. But if we were to be 100 per cent careful in every case, we would simply not be able to do our jobs."

In many cases, the Chinese involved are prompted to take risks by a desire to get the information out, knowing it would never be published in China. The call could only be made on a "gut feeling, on a case-by-case basis", Ms Liu said, and no one could predict how situations would develop. "Sometimes you are going to make the wrong call. It is a huge dilemma."

And if it all means some controversial stories go unreported, it is a dilemma that seems to suit the more opaque elements of the state perfectly well.

Life's been tough for injured activist from the very start

Activist Lu Banglie's savage beating in Taishi village was not the first time he found himself in a life-threatening situation. Threats to Mr Lu's life started even before he was born, with his impoverished mother trying repeatedly to end her pregnancy.

"My mother was 48 or 49 when she conceived me and she tried several times to abort me but she was stopped. We were very poor and she didn't think that at her age she could raise another child," Mr Lu said.

"When she delivered me, she let me fall to the ground. She just sat in her chair and refused to pick me up. It was her sister-in-law who picked me up."

Mr Lu, a boyish-looking 34-year-old divorcee with a seven-year-old daughter he hardly ever sees, has been threatened on many occasions but remains unfazed. He has been hacked and beaten unconscious, but his experience in Taishi was the worst because he was knocked out for a day.

"If I was afraid, I wouldn't be doing this," he said. "I bought insurance before I became an activist because I knew it would be dangerous. I pay 444 yuan a year for a policy amounting to 180,000 yuan. In the event of my death, the money will go to my daughter and my mother," he said.

He says he limits his time with his daughter to shield her from the dangers of his mission.

His own mother came to love her youngest child and found enough money to put him through two years of senior middle school.

Growing up, he saw how hard the peasants' lot was and became a victim of fraud himself when he tried to secure a contract to mine sand.

"I was very angry. Peasants lead a hard life and cadres not only do not care but lie about the real situation," he said. "My anger burned inside me and I wanted to do something for the laobaixing [ordinary people] so I started going to Beijing to petition, to give them feedback about the reality and to ask them to lighten peasants' burden."

A year or so later he returned empty handed and frustrated to Hubei , but the people he met while in Beijing made him realise that petitions were not the way to go.

He later met people from China Reform Magazine and attended training courses organised by the magazine and began to consider running for election so that he could better serve the peasants.

"I thought I could use the Villages' Organisation Law to push for democracy and economic development," he said. "With this in mind, I ran for election but I was unsuccessful because the election was rigged."

Mr Lu changed tack again and organised the ousting of the headman of his native village, Baoyuesi, in 2003.

He succeeded, and took over as village chief. A few months later, overwhelmed by the village's debts, he stepped down.

He went to Beijing again this spring to consult experts on ways to push forward rural development, but after again coming up empty handed moved south to Huizhou , where he found a job in a packaging factory.

In July, he was again unsuccessful in another attempt to seek inspiration in Beijing and returned to Guangzhou to find a job.

It was in Guangzhou that he ran into Yang Maodong , an activist better known as Guo Feixiong , whom he had met in Beijing, at a dinner and was told about the problems of Taishi.

"We talked about Taishi and decided to recall the headman," he said. Mr Lu said he would not return to Taishi in the near future, but would take time to recuperate from his injuries and reconsider his strategy.

Here lies the truth

With only a bruise on his right elbow to show for the beating he was given by thugs in Guangdong, pro-democracy activist Lu Banglie is in a forgiving mood towards the British journalist who told the world he had been mutilated and left for dead. "He seemed young and I don't think he was very experienced," said Mr Lu, 34, as he recovered from his ordeal with friends in Hubei province . "He was caught up in a very frightening situation. In those circumstances it is understandable that he got it wrong."


Benjamin Joffe-Walt's report - splashed on the front page of Britain's The Guardian newspaper on Monday last week - described in graphic detail how Mr Lu was apparently killed by a group of five to six men in Taishi, Guangdong, the scene of rural unrest.

Mr Lu had been accompanying Joffe-Walt and his translator when they were stopped and Mr Lu, a legislator from Hubei who has helped villagers try to fight for their legal rights, was dragged out of the taxi after being recognised by the mob.

In a shocking report, the 25-year-old reporter said he saw Mr Lu lying on the ground "his eye out of its socket, his tongue cut, a stream of blood dropping from his mouth, his body limp, twisted ... the ligaments in his neck were broken". It seemed a brutal indictment of the abuses of power in rural China - until Mr Lu appeared in his home province, very much alive and without any serious injuries, on the same day the sensational report in The Guardian was published.

He had been beaten unconscious, and bundled into a car and driven back to his home province, hundreds of kilometres away. Mr Lu has since undergone medical examinations and internal scans that reveal no lasting injuries.

So how could the journalist have misjudged the situation so gravely? Looking at copies of the newspaper's reports, Mr Lu said: "I was wearing a red shirt and it was dark. Maybe he saw the colour of my shirt and thought it was blood. As for my eye popping out, perhaps he just saw the reflection of the torches being shone in my eyes.

"His report is obviously false, but I believe it is the government's fault that things like this happen. If the government allowed journalists to report what is going on in these villages, these kind of false reports wouldn't appear. If they let people go freely into these places, people would know the truth."

Joffe-Walt's employers have been less generous in their appraisal of the report filed by the American former high school teacher who began working as the newspaper's Shanghai correspondent last month.

In a blunt article by the newspaper's own ombudsman on Monday, the newspaper said Joffe-Walt had been recalled to London and examined by a psychotherapist, who had concluded that at the time of writing, he had "lost touch with reality".

The article spoke of the reporter's "grave flaws" and "gross errors and exaggerations" and said his report had "threatened the credibility and integrity of The Guardian's reporting in China".

It emphasised Joffe-Walt's relative inexperience, saying: "His main experience has been gained in six months working for a South Africa newspaper ... and an overlapping period as a stringer [for] a British newspaper, The Sunday Telegraph."

The story of how the paths of two idealistic young men from hugely different backgrounds - one a western journalist and the other a Chinese activist - came to cross with dramatic results in the south of China is an intriguing and unlikely one.

As recently as 2003, Joffe-Walt was working as a high school teacher in Canada. He went to Baghdad as a human shield, one of a group of anti-war activists who tried to put themselves in danger's way to stop a US invasion.

Afterwards, he told his hometown paper in the US, the Philadelphia Daily News, that the experience was "very stressful" but that he would be prepared to go back and put himself in harm's way for the anti-war cause.

Joffe-Walt chose not to return, it seems, but instead headed for Africa, where he began a new career as a newspaper reporter, working first for South Africa's This Day newspaper and then as a stringer across Africa for The Sunday Telegraph.

He filed harrowing stories from across the continent, visiting flashpoints including Darfur and picking up an impressive brace of awards in the process - young journalist of the year from the Foreign Press Association in London and CNN African print journalist of the year in June this year.

Joffe-Walt's transformation from high school teacher to frontline war reporter took place at the same time as a sea change in Mr Lu's life. A farmer in Hubei, Mr Lu became increasingly disillusioned with the abuses of power in rural China and decided to fight for the reduction of taxes on poor farmers.

As his marriage broke down and his wife took their daughter, now seven, to live in a new home more than 20km away, Mr Lu became increasingly involved in his political activity, taking advantage of rural reforms to win a seat in 2003 as a provincial legislator.

"I got involved in politics because I saw how the lives of farmers are so hard and so bitter, and the local governments and village committees are so unreasonable," he said. "I wanted to change it."

He had been immersed in the fight for villager rights in Taishi for weeks before he met Joffe-Walt, two Saturdays ago. Standing in for The Guardian's China correspondent, Jonathan Watts, the young reporter went to Guangdong to report on the unrest.

They spent only a few hours together before the drama on a roadside near Taishi.

Joffe-Walt claims he asked Mr Lu to get out of the car three times before they stopped at a security roadblock, but Mr Lu said: "I reassured the reporter I would be OK. I told him I have a big life inside me ... I told him he didn't need to worry about my safety."

Reflecting on what happened to him, Mr Lu said: "I don't believe they were trying to kill me, because if I had died it would have caused a big controversy. They just wanted to scare me so I wouldn't go back again. But I will go back. I am not afraid."

Joffe-Walt returned to Shanghai the day after the attack, arriving just in time to catch the end of an opening party for his office - set up with a group of other reporters working for newspapers overseas and nicknamed "the writers' commune" by fellow journalists.

It would appear that he filed the report late on that Sunday night, Shanghai time. The Guardian said it arrived "only an hour before deadline, which left little time for interaction" and described his original copy as "3,500 words in a graphic stream-of-consciousness narrative".

After the story broke, events moved quickly. Joffe-Walt was summoned to a meeting in Hong Kong with The Guardian's diplomatic editor, Ewan MacAskill, who was flown out from London to interview him. Watts was meanwhile recalled from holiday and sent to interview Mr Lu and arrange for a medical examination.

Joffe-Walt was then flown back to London where The Guardian said he "expressed repeated apologies for what he had done and its implications for The Guardian, and indeed for the pro-democracy movement in China".

Journalists in Shanghai were meanwhile bemused at the saga of the young journalist who had only just arrived in the country and now appeared to be making one of the quickest exits on record, a day after his welcoming party.

One senior Shanghai-based journalist, who asked not to be named, said: "One of his colleagues said he had a flair for the dramatic, which isn't necessarily a bad thing for a journalist. But it seems that in this case he may have gone a bit too far."

Whether Joffe-Walt has a future with The Guardian remains to be seen. Monday's article announced that the British newspaper, which prides itself on its high standard of journalism, has to protect its own reputation but also has a "duty of care" for its young reporter.

What becomes of Joffe-Walt is a matter of relative indifference for Mr Lu. Although Joffe-Walt has been under a psychotherapist in London and suffered from what The Guardian describes as "traumatic distress", Mr Lu is facing up to much more real day-to-day dangers on the mainland.

After evading the security police who have him under surveillance to drive three hours to a meeting for this interview, Mr Lu said of his ordeal: "I am angry at what happened to me, but not surprised. It is something that cannot be avoided in the struggle for democracy in China. It is a price I have to pay."




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[boomerang] Posted by Simon at 10:16
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» Bingfeng Teahouse links with: re sun bin's question on village impeachment cases
» Winds of Change.NET links with: China, democracy and a place called Taishi




October 18, 2005
Daily linklets 18th October

The rocket man edition...

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[boomerang] Posted by Simon at 16:25
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» tdaxp links with: The Importance of Economic Growth (India and China)
» links with: xnxx




Gnome unknowns

Donald Rumsfeld is in China today and the Christian Sciene Monitor has a great article on the visit and China's secretive military. I was going to cut and paste some key parts and found myself with the whole article, it's that good. Go read it and come back.

There are several interesting points in the article. Firstly this: "The US is no longer willing to trade high-tech military briefings ... for a dog and pony show," says one US official. "I think the Chinese now acknowledge that message." This is a sign of growing maturity and even potentially trust between the two sides. But the key remains "transparency", that is a greater understanding to avoid potentially massive problems later:

Many US strategists, including Admiral Fallon, argue that a military clash with China is not inevitable, despite the fact that the two forces are eyeing each other with greater wariness. But "transparency" has grown in importance for US generals and admirals, as well as pilots and submarine commanders, because the margin for mistakes in a "Taiwan scenario" - the hottest flashpoint - is getting smaller. China's main military modernization is designed to fight an offensive battle to capture Taiwan.

Without transparency, some military operations chiefs say, it is harder to know when one side or the other is bluffing, especially amid tensions. "Western forces have a hard time understanding Asian forces, how they think and act," says Michael Boera, the wing commander of the 36th Air Expeditionary Wing in Guam. "It is a different culture, and we need to guard against misunderstandings that we aren't ready for."

But trust is a two-way street and the article's (natural) implication is it is time for the Chinese to put in the hard yards in this trust and understanding game. And a game it is, as the concluding paragraphs demonstrate:
A central reason China has not always been willing to be transparent or reciprocal is that many of their capabilities and operations have been crude, analysts say. At one point, an elderly Admiral Rickover, father of the nuclear submarine, visited a Chinese base and made disparaging comments, deeply hurting the feelings of his host.

Not showing under-par bases or military hardware may be a strategic choice by China, some analysts say, as it can mislead an opponent as to strengths and weaknesses.

Donald Rumsfeld will be subjected to a Chinese shock and awe program during his visit. The Americans are rightly worried mostly about the potential for a Taiwan invasion and China's deliberate ambiguity in its intentions.

The heartening thing is the two sides are still engaged and talking. On the American side there are many both in and out of the military who do not think a military confrontation is inevitable, and the same is likely true of the Chinese side (although their thinking is obviously not publised or reported). The world has a vested interest in making sure these "moderates" are the sides that win their respective internal "wars" on their views of their potential partner or adversary.

Welcome to China, Donald Rumsfeld.

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[boomerang] Posted by Simon at 11:51
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» Live From The FDNF links with: Rumsfeld And China's Secretive Military




Axis of evil meets sin

British American Tobacco turns out to have a small cigarette factory in North Korea:

The world's second largest cigarette company British American Tobacco has been operating a secret factory in North Korea for the last four years, the U.K.’s Guardian daily reported Monday...With an initial investment of US$7.1 million, BAT owns 60 percent of the joint venture. BAT-Taesong employs around 200 North Koreans.
No word on the status of the Guardian's reporter on this story.

That aside, this has brilliant potential. Given North Korea's pariah status, why doesn't KJI turn into a centre of excellence...for sin. Casinos, alcohol, cigarettes, prostitution, drugs and any of the world's ills, all produced free of guilt.

Two wrongs don't make a right, but they might make a country.

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[boomerang] Posted by Simon at 09:56
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Donald Tsang's bedroom eyes (Updated)

Hong Kong is beloved by libertarian groups around the world for its apparent flat tax structure and its apparent laissez-faire economy. While that's mostly fallacy, it helps Asia's World City score highly on various surveys, so it keeps the mutual appreciation society going. But there are some things Chief Executive Donald Tsang can't contemplate privatising. From the SCMP:

Donald Tsang Yam-kuen has waded into the controversy over the age of consent for homosexuals, warning against what he called the "privatisation" of moral standards. Mr Tsang said that while he was a devout Catholic, his work had not clashed with his conscience during his 30 years in the civil service.

During a question-and-answer session yesterday on his policy address with more than 1,000 young people, Mr Tsang was asked whether he would defend moral standards in Hong Kong. The question was referring to an August High Court ruling which overturned a law that criminalised buggery for men under 21 on the grounds that it was discriminatory. "Everyone has moral values, especially over the issue of sexual discrimination," Mr Tsang said. "But there are things I feel strongly about. I believe the privatisation of morals has become a danger in society. Some people say `since what I do does not affect others and it has nothing to do with other people, why should I be constrained?' I have reservations about this because a moral is a value shared by the entire society.
Now that's a question. Is a moral a value shared by the entire society? I would contend the very opposite - morals are personal values. Societies often have morals in common (e.g. incest) but others they disagree about (e.g. abortion). Donald Tsang hit the nail on the head with his question - why should what happens behind closed doors between consenting people be anyone else's business? Clearly it shouldn't so long as it does not affect others. It's a basic principle of a free society. Legislating morality, which is effectively the opposite of its "privatisation", is a throwback to the bad old days when the government knew best. Morals are privatised because they are private.
Mr Tsang stressed that while he respected the court's ruling, it was also important to protect young people. "I think it is a bit too much if we allow people as young as 14 or 16 to have this; from a state of no choice to overturning the law."

The government has already filed an appeal against the High Court ruling.
The principle is simple. There should be no distinction in the age of consent between homo- and hetro-sexual sex. If you're old enough for one, you're old enough for the other. Instead of paying lip service to ideas of equality and anti-discrimination, Donald Tsang needs to stop preaching and start acting like a man of principles. Here's hoping Hong Kong's High Court agrees.

At least Mr Tsang finished on a funny note:

Mr Tsang also weighed into the controversy over claims Disneyland Hong Kong is exploiting workers. "I believe the [Disney] management are smart people and it will be improved if we give them time and room," he said.
From what I'm told, Disney people have had plenty of room at their park, even during the national day holiday week at the start of October.

Updated (10/18)

Jake van der Kamp from the SCMP on the same issue:

Donald should stick to his day job and stop trying to play God

"I believe the privatisation of morals has become a danger in society. Some people say `since what I do does not affect others and it has nothing to do with other people, why should I be constrained?' I have reservations about this because a moral is a value shared by the entire society."

Donald Tsang Yam-kuen
Chief Executive

How revealing. Mr Tsang is a political man but this was not a political observation. It was a religious one and it poses the question of how far it colours his thinking as our Chief Executive.

The context in which he made it was a question and answer session on Saturday with more than 1,000 young people following his policy address. He was specifically responding to a question about a judicial ruling that a law which criminalised buggery for men under 21 was discriminatory.

Let us leave the specific context aside, however, as Mr Tsang's response was a more general comment on manners and morals in society anyway. The difficulty I see is that he did make a crucial distinction he really ought to have made. Here is the question for him:

To what extent, sir, is a sin a crime?

If I deliberately mislead my wife about where I have been this afternoon, I tell a lie. If I deliberately mislead shareholders of a company of which I am director, I also tell a lie.

In the first instance, a government official may tell me that I have acted immorally but that is as far as his authority carries. In the second instance, he may again tell me I have acted immorally but in this case he may also legitimately bring charges against me in a court of law.

It comes down to a question of the limitations of government and enough has been written about it to fill any number of libraries. Over time, however, most societies have drawn a line between moral offences that endanger the social fabric and those that do not.

Telling a lie to my wife may endanger my marriage but society can carry on quite well if I do so. Telling a lie in a prospectus is fraud and carries a distinct risk to the social fabric. It may not be as great a risk as permitting murder or robbery but we would all find it much more difficult to deal with each other if we permitted fraud.

Both offences may be equally heinous sins to God, to put it in the classic terms of the Roman Catholic faith to which Mr Tsang subscribes, but government is not God and a sin is not necessarily a crime. By long established convention we make it a crime only if it threatens the social fabric.

I wonder if Mr Tsang is not at risk of blurring this distinction. He speaks as if private morals were something new. They are not. He recognises this himself when he goes to the confessional. He confesses to a priest, not to the commissioner of police. Are we to think this something new?

The sad fact is that public interference in matters of private morals has throughout history invariably led to horrendous religious wars or brutal oppressions.

Western societies in particular have learned through bitter experience that there is good reason to keep God and government in separate spheres. China may consider itself blessed that it rarely made this mistake.

It may be true, as Mr Tsang says, that moral values in any society are shared by that entire society. It may be equally true that government is common to that entire society. This does not, however, automatically mean that moral values are a government matter. Water is wet. So is oil. Is water therefore oil? I fail to see the crucial step of logic in his implied thinking here.

It is no more than implied, I know. He did not come right out and say that certain homosexual activity under the age of 21, leaving aside any question of whether it endangers the fabric of society, is morally repugnant and that he therefore has the right to bring the full weight of government against it.

It was a fairly strong implication, nonetheless, and I think it worth noting because there are many people in this town who are a little worried about the emphasis that Mr Tsang places on strong governance.

Just how far does he intend to carry it? Do his reservations about the "privatisation of morals" mean that he would like to adopt a Singapore-style Big Daddy government in which matters of personal and private conduct are subject to government scrutiny for common codes of moral rectitude?

Constrain yourself from constraining others in these matters, sir. My sins I shall take up with God. My crimes alone are your business.




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[boomerang] Posted by Simon at 07:22
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October 17, 2005
East Asian Man

Jodi and Richard TPD posted contrasting, yet reinforcing, confessions about that elusive entity, East Asian Man. Wimp or Macho? Can Busan Man kick China Guy's ass? Has Jodi ruined her man? I never wear a suit without some stress-reducing feature, like wearing no boxers or a black t-shirt.

Cross-Posted at Barbarian Envoy

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[boomerang] Posted by Infidel at 22:11
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Tamiflu And Beyond

MR's Tyler Cowen cautions against allowing Indian, and possibly Taiwanese, firms from abandoning patent rights law and Roche, to speed up production of Tamiflu stocks. The worst-case scenario looks something like this.

I suggest a different approach. Let's offer Roche a large prize for speeding up the construction of the U.S. plant. This can include legal and regulatory waivers (Bush already has suggested this idea). We also make it clear upfront that if a pandemic comes, the U.S. government will purchase Tamiflu doses at a relatively high price. This latter round of payments can be made upfront, with a refund to the government if no pandemic arrives. Ex post, the government distributes the doses for free, with medical workers and key individuals in the supply chain (food, transportation, Typepad) given priority.

Andrew Sullivan agrees with Stephen T. Gordon, that the US should "...make the drug anyway and compensate Roche later."

Right now, we should do all we can to accelerate the difficult process for a vaccine, but that may take too long and production of sufficient vaccine is often a logistical nightmare. The second best option is mass distribution of Tamiflu and similar drugs that can ameliorate symptoms and could cut the death rate.

I'm worried this debate is focusing on prophylactics, like Tamiflu, when H5N1 could already have overcome it, or quickly could. Then, there's persons, like the last caller on the NPR program last post, who are skeptical of the threat from this pandemic, and at best would be incapable of following instructions from government agencies, if not openly hostile.

Cross-Posted at Barbarian Envoy

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[boomerang] Posted by Infidel at 17:11
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Daily linklets 17th October

Back and babe-less...

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[boomerang] Posted by Simon at 15:15
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Forests and trees

And I'm back.

Thank you to all the guest posters during my break. As usual, a wide variety of posts that will likely result in top billing for some strange Google searches. I particularly like this blog being referred to as "semi-formal". I was aiming for "black tie", but whatever.

As I left for holiday the now infamous Guardian article had just hit the press. In short, the journalist in question went to Taishi with a human rights advocate, thought he saw the human rights advocate bashed to death, wrote about it only for the same advocate turn up with some minor injuries in his home village very much alive and well and reading up on Mark Twain. Bingfeng has summarised the resulting uproar, with accusations that this reporting has damaged the cause of democracy in China and far more besides. As one commenter noted, the split has seemingly come down to those who are reflex anti-CCP and those reflex anti-mainstream media (MSM), this being one of those rare cases where it is not the same thing.

And yet all this debate is missing the major point.

For all the pretence that China's "new" leadership was all about grass-roots change, about closing the rural economic gap, about weeding out corruption, about making government responsive to people, Taishi has clearly demonstrated how far from reality this vision remains. There is no doubt that China's leadership in Beijing, even while occupied with the recent smackdown plenum, know about Taishi. This could have been a chance for a genuine, citizen driven democratic experiment. It was sufficiently small-scale, the mitigating circumstances in place. It was completely controllable and scalable should it have proved a success. While some of us have been blogging about it for months, finally some mainstream media sources cottoned onto the potential story and chased it. And then came the (pardon the pun) road smash. And now the collective energies of various sources of China-related information have been focussed on what a bumbling journo did or didn't do and what it does or doesn't mean. There are 1.3 billion people in China who have no idea about this debate. It's meaningless to them. But the potential result of the Taishi experiment, if it had gone another way, could have greatly affected many millions of those people, including the leadership.

So let's refocus on the real villians of the piece: who decided to stop the Taishi experiment before it could start? Why? And why do forked tongues remain so fashionable?

Related reading

  • Running Dog on Taishi and the woes of Government explains why Beijing prefers vested interests and corrupt local governments retain control.
  • ESWN is on top form with centripedal and centrifugal forces in China, a contradiction Taishi could have helped solve but instead will make worse.
  • Asiapundit defends the Guardian journalist, Benjamin Joffe-Walt, and his actions.
  • Rebecca MacKinnon hits the nail firmly on the head:
    Will Chinese netizens be successfully manipulated into foreigner-bashing as an acceptable alternative to communist party-bashing?
    Her next post is even better, noting that most of the Western media isn't interested in the Taishi story now that Lu Banglie turned up OK. Sadly the same is mostly true of the wider blogosphere as well. The crucial issue is what Taishi represents, but most media cannot seemingly view its impact without the frame of "authoritarian government beats human rights advocate and journalist". Forget about the "authoritarian government quashes constitutionally valid recall process to preserve vested interests" angle. And why does that matter? Because like it or not, if it's not in the media, it's not in the forefront of (Western) politicians' and most voters' minds. It's forests and trees again.
  • Sun Bin reports that there have been 52 village recall elections, like Taishi tried. He's more optimistic about the potential outcome for the future.
  • ESWN has the full chronology of Taishi, and has filled it in with more details filling in some of the blanks. He also comments on the Guardian debacle, and has the translation of well-known Chinese blogger Anti's anti-Joffe-Walt post.
  • Best of all, in a related post, ESWN talks about the dangers of working with Western journalists in China. Maybe that's the real lesson of this sorry episode.

Updated (10/17)

The Guardian's readers' editor (what does the regular editor do then?) defends Mr. Joffe-Walt's actions, saying he's been given a good talking to and packed off to a therapist until the heat dies down (pardon the pun). One could ask what kind of training the Guardian gives its 25 year-old journalists when dispatched to places such as China, where media freedom isn't quite what it is elsewhere. One could ask why the Guardian published a clearly potentially inflammatory article when there was little time for interaction with the [news] desk. One could ask if the Guardian staff know abuot the Stockholm Syndrome when we are told they have all developed some sympathy for Joffe-Walt, despite the fact that his report had threatened the credibility and integrity of the Guardian's reporting in China. Mr Joffe-Walt has expressed repeated apologies for what he had done and its implications for the Guardian, and indeed for the pro-democracy movement in China, and he had lost touch with reality when he filed his report.

Ian Mayes concludes The Guardian clearly has to protect its reputation. It also recognises a duty of care to Mr Joffe-Walt. The two things are not incompatible. No, they're not incompatible at all. Where the Guardian has fallen down was throwing a 25 year old novice into one of the more dangerous reporting assignments without adequate care or supervision. If we're sharing out blame, it's the Guardian itself that needs to shoulder a significant part of the responsibility. Don't hold your breath.

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[boomerang] Posted by Simon at 13:35
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» Shanghaiist links with: It's all about the Benjamin
» The Peking Duck links with: If you haven't totally OD'd on Taishi stories yet...
» Bingfeng Teahouse links with: taishi: random thoughts and more questions
» Sun Bin links with: Taishi and Village Impeachment
» Winds of Change.NET links with: China, democracy and a place called Taishi




The Confident Nationalist

Update: He did it in a gray suit. But, who's lamer, Koizumi or the ROK government for protesting?

With his postal privatization reform bill firmly in hand, I guess we all hoped Japan PM Koizumi would take a hint, but in 15 minutes he will visit Yasukuni Shrine. So much for the theory, that visits were taken to placate conservatives opposed to reform.

If only the Democrats had won, we could have had both a postal privatization plan and none of this nonsense.

Cross-Posted at Barbarian Envoy

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[boomerang] Posted by Infidel at 09:49
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A Question Of Maturity

BCH offers the least of many reasons China should not radically revaluate the yuan, as the Bush administration is asking.

Administration officials say the plan is part of an effort to put the yuan into a broader debate over China's lopsided reliance on exports as the main source of economic growth. The plan, to be discussed in two days of talks here and in Beijing, calls for China to speed up the privatization of state-owned companies, including banks; to develop a Chicago-style futures market for currency trading; to establish an independent credit-rating agency; and to crack down on bailouts for banks left holding bad loans.

David Barboza offers an illustration of what revaluation means for Chinese companies.

Led by such trade gains, China's economy has been sizzling hot, bringing in so much money that Fitch Ratings said on Friday that China could in 2007 become the first country with more than $1 billion in foreign reserves; as of the end of last month they totaled $769 billion, the central bank said on Friday. Beijing is worried that strengthening the currency rapidly and sharply could be too much of a shock for the economy, perhaps even forcing companies to lay off workers.

Some economists say China's golden years are already coming to an end. And foreign manufacturers will not have it so easy. "The big question is what will happen over the next few years," said Jonathan Anderson, chief economist in Asia for UBS. "Wages and costs are going up in China. The economy is already past its peak. This is no longer the easy money you had in 2002 and 2003." There are fears that if China's currency appreciates sharply, some manufacturers will be forced to raise prices or shift their production to other low-cost regions, like India or Southeast Asia. Multinational companies that manufacture in China are already drawing up contingency plans.

According to Bloomberg, FDI trends are already mixed. In short, China's economy has already reached a point of maturity, but just as in previous periods of growth in its history, economic development is uneven.

Furthermore, as William Pesek, Jr. points out, the Bush administration is just wrong about comparing China to Japan or the former Soviet Union.

China is considerably less wealthy than Japan, and far more reliant on trade. So if Snow thinks his trip to China this month will result in a further strengthening of the yuan, he is mistaken.

Yet China is already more intertwined with the global economy than the Soviets ever were and its embrace of capitalism is more progressive. China's economy also is more stable and growing much faster than the Soviet Union's ever did.

Unlike the Soviet Union, which used fear to bend others to its will, China is using economic diplomacy. It has chosen integration and the promise of robust demand for trading partners' goods, rather than confrontation.

China, in part by buying so many U.S. Treasury bonds, also has made its relationship with the world's biggest economy symbiotic, a step the Soviets never took.

So, stop calling the Bush administration bullies. They're idiots!

Cross-Posted at Barbarian Envoy

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[boomerang] Posted by Infidel at 09:38
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Harold Brown talk notes

Cross-posted at Andrés Gentry

On October 6 Harold Brown, former Secretary of Defense during the Carter Administration, came to UCSD to give a talk at an IR/PS Dean's Roundtable.  His topic was "Managing Change: China and the U.S. in 2025".  I attended his talk and following are the notes I took.  Any errors are mine alone.

1.    Earlier spoke at Rand China Forum

  • Last month spent a week in China (informed somewhat his view of the path of US/China relations)

2.    Clear major new force is rise of China

  • Civil War in Islam may be a close 2nd

3.    In 2025, what will US and China look like?

  • GDP: US: 3% growth will yield a 2 trillion USD economy: with a population of 350-370 million will yield 65,000USD per capita GDP
  • GDP: China: 8% growth will yield 7 trillion USD economy: with a population of 1.4 billion will yield 5,000USD per capita GDP (but 12,000-15,000 at PPP)
  • Both estimates perhaps over-optimistic because of:
    • US: effects of War on Terror, monetary/fiscal policy, energy shortages

    • China: urban/rural divide, no social safety net, demography (1-child policy), local differences
  • China will be the world’s manufacturing center (today it’s the US: it produces 2x China’s output)
    • Rising wage rates will push some jobs from China to India

4.    Will pass over military balance question.  Just says if US defense spending is level US will continue to be the biggest power in the world and the West Pacific

  • However, China is expanding its military
  • Conflict on Mainland would be to China’s advantage but Taiwan Straits conflict to the US’ advantage

5.    China’s foreign policy is global

  • Unlike Japan’s, it’s not only economic, it has strategic political and military components

6.    China is a rising power: historically leading power/rising power changes have yielded conflicts: this isn’t encouraging

  • One exception: UK to US change
  • 20th Century: particularly noxious: 1900-1945: attempt by Germany/Japan to replace powers, USSR tried  1945-1990
  • And China?
    • Positives

      • Nuclear weapons: worked well with USSR, tamping down US/USSR conflict
      • Unlike USSR, Germany, Japan: China doesn’t have an ideology it wants to spread
        • US has this Wilsonian Impuse, this will damp down in next 10-15 years
      • China wants to be Asia’s greatest power
        • Brazil wants to be Latin America’s premier power and this doesn’t bother US too much

      • Both US and China have common interest in world trading system and we have “balanced” economies

        • Though this leads to some frictions: China’s intellectual property laws, contract enforcement
    • Possible problems
      • Protectionism in US, competition for energy, China already has ½ of US’ oil consumption and 3x US’ coal consumption

7.    Energy consumption effects

  • Increasingly import oil from the Middle East, sea lanes are vulnerable to interdiction by US Navy
    • But China unlikely to challenge US Navy
  • Global climate change
    • By 2025 China and India will produce more CO2 than US

    • Will industrialized countries pay to clean up the mess?

8.    Sensitivity

  • China military expansion makes its neighbors nervous
  • Some pressure may build for US to withdraw from Asia: he thinks this would destabilize East Asia
    • US/Japan cooperation especially makes China sensitive

    • Any Japanese military capability worries China

9.    Managing US/China relations

  • a.    DPRK, Taiwan, internal PRC developments: key points
    • DPRK: we’ve had a good start
      • 6-party talks may be a start to Northeast Asia security architecture
    • Taiwan: things currently damped down
    • Internal PRC developments
      • Will PRC become a democracy?  Not likely
      • Question is how authoritarian will PRC be?
      • There is a lack of transparency in PRC
      • How will CCP try to stay in control?
        • Through greater social controls?
      • If faced with major threats to CCP control then perhaps they will use populism/nationalism to stay in power

10.    He’s fundamentally optimistic: common threats and concerns will trump genuine differences and conflicts of interest

Question and Answer Session

1.    China Navy: submarine fleet?  Local San Diego naval leaders worry about it

  • Fundamentally, China military was a land force
  • Recently made a move to joint land/air/sea operations and make navy/air force less subordinate to army
  • US Navy is especially worried because it will have the primary role in the Taiwan Straits
  • US Navy also trying to hype the China threat to get a better budget (especially since Iraq and Afghanistan have focused monies on US Army)
  • It’s a legitimate worry: US Navy should focus on anti-submarine warfare

2.    US Navy is smaller than before, so how to be optimistic?

  • During Brown years, US Navy was 2x as big, but USSR naval threat was much larger than Chinese Navy
  • China has no aircraft carriers (save for in amusement parks)
  • How to measure US Navy to its tasks?  On this level it’s pretty good
  • China Navy lower power projection ability than UK or France
  • To improve US Navy better to improve current ships than increase their number: communications, intelligence

3.    Higher education: is it in US long-term interests to educated Chinese in US universities and thus help China to catch up to US?

  • Especially in science and technology this is a problem
    • Helps with making sensible decisions to deal with global climate change or pandemics
    • Helps improve productivity
  • So US should continue to be open to foreign students
    • Many of these students will stay

    • Some will return to their home countries: this cuts both ways
      • They will improve their own economies which isn’t necessarily bad
      • If they develop positive opinion of US then that’s good
  • Will foreign Ph.Ds swamp US?
    • If economic system isn’t good it doesn’t matter how many Ph.Ds you have (social and political systems are important too)

      • USSR and Japan produced many engineers and they didn’t overtake US
    • In China the problem is management skill level, also there’s the question of China’s political development

4.    Pros/Cons of Chinese buying US companies?

  • If we’re an open economy we should allow this to happen
  • Will we require reciprocity?  There should be some
  • Outside of classified/strategic technology we should be open to China buying US companies

5.    Chinese leadership has many scientists and engineers.  What’s the effect?

  • Partly this is because there have been no business/law schools
  • Key is not to be a scientist, it’s to understand science

6.    Oil in South China Sea: is this a source of conflict in that area?

  • Yes, but fortunately haven’t found much oil there
  • Energy conflicts have so far been worked out
  • Another reason China is increasing its navy

7.    What will Chinese leadership look like in 2025?

  • Will be people born after Cultural Revolution but parents/grandparents will have suffered
  • Will they have the vision to solve PRC’s problems?  Don’t know, but their style will be much different than the Founding Fathers

8.    Robert Barnett just wrote a book separating world in the connected and unconnected worlds.  US trying to make an enemy of China to justify their budgets.  What do you think of the book?

  • Hasn’t actually read the book
  • China clearly joining the industrial world
  • Mistake to make China an enemy and it will be a mistake if we actively do that
  • Risk in both nations: leadership will excite the public to believe the other is an enemy
  • But we should also not let provocative actions go unchallenged (for either side)

9.    Doesn’t believe USSR is an apt comparison to China: thinks Korea is a better comparison.  Big concern is their legal system and protection of intellectual property

  • That’s why he also made comparisons to Japan
  • China might compete on entrepreneurial level (which USSR never did)
  • Perhaps when China has its own intellectual property it will more vigorously protect intellectual property
  • Chinese enforcement of contracts is quite weak
  • Importance of connections leads to corruption and is a real risk for doing business there and for Chinese themselves

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[boomerang] Posted by Andres at 01:42
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October 16, 2005
Strait-Jacketed

If Michael Turton is right, and the Bush administration is either willfully ignorant of Taiwanese domestic developments or just trapped between Beijing and Taipei, Secretary of Defense Rumsfeld's trip to Taiwan is doomed to failure.

Recall further that the weapons package is one of a score of bills that needs passing, all stalled by the pan-blues. The US needs more than just an armed Taiwan; it needs a well-run government with a stable economy if Taiwan is to support the US policy of containing China. Any US response to the arms package should also focus on the fact that it is just one aspect, albeit the most public, of a multi-pronged campaign by the two pro-China parties to bring the nation's government to a halt. Effective governance, after all, furthers Taiwan's autonomy.

Turton's advice to "thump KMT and PFP heads" might not be Rumsfeld's intent, if this skittish, unnamed Defense official is any indication:

On the roadblocks in the Legislative Yuan to passage of the arms sales funding, the defense official, who briefed on the condition that he not be named, denied that Washington was trying to "force" Taiwan to fund the sale.

"It isn't our obligation [under the Taiwan Relations Act] to force anything on Taiwan," he said.

The decision is up to the Taiwan people, the official said. "So we are not attempting to interfere, as we are so often accused. We're simply saying that however it is budgeted, this is an issue for the people of Taiwan. If the people of Taiwan decide not to budget for it, then that's their business," he said.

Admiral William Fallon, US Pacific Commander, seems to be towing the party line, too. if this is all for Beijing's benefit, it's unlikely to persuade the KMT and PFP to play ball.

Another problem is the fast-approaching APEC summit in November. The government and opposition do seem to have agreed upon a representative. Finally, there is the issue of the cross-strait peace advancement bill.

Meanwhile, Canada is angry about Beijing's "bullying" over bill C-357, The Taiwan Affairs Act. Handling Taiwanese relations, with all these side-plays and domestic distractions, isn't a job for the military. Sending Rumsfeld just doesn't seem to be the right US cabinet official to send.

Cross-Posted at Barbarian Envoy

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[boomerang] Posted by Infidel at 17:34
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Torture Under The Radar

Marty Lederman and CT's Henry Farrell are putting out the alarm over Senator Ted Stevens' attempted "augmentation" of the McCain Amendment, concerning US military and government policy on the legality of torture. featuring a carve-out for the CIA.

A recent Congressional Quarterly article, reprinted here, reports Stevens -- who would "lead the Senate's conferees" -- as saying that "he can support McCain's language if it's augmented with guidance that enables certain classified interrogations to proceed under different terms." "'I'm talking about people who aren't in uniform, may or may not be citizens of the United States, but are working for us in very difficult circumstances,' Stevens said. 'And sometimes interrogation and intimidation is part of the system.'"

What this barely veiled statement means is that Senator Stevens will support inclusion of the McCain Amendment in the final bill only once it has been "augmented" to exempt the CIA from the prohibition on cruel, inhuman and degrading treatment. (Stevens's reference to persons who "may not be citizens of the United States, but are working for us" suggests that he also intends to include a carve-out for foreign nationals acting as agents of the CIA, such as the team of the CIA-sponsored Iraqi paramilitary squads code-named Scorpions.) If Stevens (read: Cheney) is successful in this endeavor, and if the Congress enacts the Amendment as so limited, it will be a major step backwards from where the law currently stands. This can't be overemphasized: If Stevens is successful at adding his seemingly innocuous "augment[ation]," it would make the law worse than it currently is.

Those wishing to learn all the details of why this is so are encouraged to read my previous posts (particularly those of January 8, 12, 18 and 25, and May 11) about how the Administration has construed numerous federal laws to make certain that the CIA is permitted to engage in cruel, inhuman and degrading treatment -- i.e., to engage in all forms of coercive interrogation short of the small category of conduct denominated "torture." Here's a quick synposis of why the Stevens "CIA carve-out" would make matters worse, the basic gist of which is this: Although the McCain Amendment would helpfully clarify and reaffirm some of the law applicable to military interrogations, it would not impose any substantive limitations on the Armed Forces that are not already in current law. The McCain Amendment would, however, emphatically reject the Administration's view that the CIA may engage in cruel, inhuman and degrading treatment in certain locations outside the U.S. -- a very significant development, but one that the Stevens "augmentation" would eviscerate.

Farrell goes on to pound his fist into the table: "It’s quite disgusting that the US mainstream press isn’t paying any real attention to what’s happening here. The US is on the verge of a momentous choice, between turning away (at least in part) from some of the vicious abuses of the last couple of years, or giving them the green flag. It shouldn’t be left up to a blogging law professor to tell us what’s going on."

For what it's worth, Andrew Sullivan railed against this measure on Real Time with Bill Maher. But, neither that cable show, nor Sullivan, a Republican blogger and currently an editor at TNR, are mainstream.

Lederman also lists scores of links related to this issue.

For those who don't know how to contact a US Congressional official, click here.

Cross-Posted at Barbarian Envoy


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[boomerang] Posted by Infidel at 11:55
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The Perfect Nationalistic Tool

Abiola Lapite and Bill Poser gush over the linguistic value of Hangul, the Korean alphabet. I'm willing to give King Sejong, and his scholarly team, all the credit they deserve for both creating the alphabet and defending it against aristocratic reaction.

In 15th century Korea, as almost everywhere else in the world, literacy was restricted to a small elite - most people were illiterate. Furthermore, Korean society was extremely hierarchical. It consisted of three tiers, nobles, commoners, and slaves. It was almost impossible for a slave to become free, or for a commoner to become a noble. Until 1444, when King Sejong forbade the practice, a slave's owner had the right to kill him at whim.

The dominant ideology was Confucianism, a philosophy based on the relationships between ruler and subject, parent and child, older and younger, man and woman, and friend and friend, the first four of which are conceived as inherently unequal. Women could not inherit property. In short, 15th century Korea was a highly stratified society rigidly controlled by a small elite in which those who were not elite and not male had few rights.

Indeed, there was strong opposition to the introduction of Hangul on the part of King Sejong's court, so strong that they presented a memorial in opposition and debated with him verbally. The reasons they gave were in part that it was wrong to deviate from the Chinese way of doing things, and in part that such a simple writing system would lead to the loss of aristocratic privilege. Their motives may have been wrong, but they understood the effects of mass literacy all too well. After King Sejong's death, Hangul was very nearly suppressed. It took much longer to come into wide use than he had intended due to the opposition of the aristocracy.

I wouldn't call him a humanitarian, though. More like Machiavelli's legislator, King Sejong deserves ample credit for being a nationalist. His lead was not followed until the 20th Century, when the Korean language freed itself from Japan's colonial education policies. Also, Hangul is useless without Korean grammar and ocabulary, which is at least 50% Chinese. Despite documentaries played for local reinforcement where South Korean scholars teach indigenous people in some exotic location the magic of Hangul, Hangul is not Esperanto. Korean study still requires Chinese, and the grammar and regional dialects frustrate proficiency. But, Hangul has facilitated astoundingly widespread basic literacy in South Korea.

So, hail the great nationalist, King Sejong!

Cross-Posted at Barbarian Envoy

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[boomerang] Posted by Infidel at 11:12
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The Beauty Of Korean Horror

My wife and I watched a South Korean horror flick, Pink Shoes (Bunhongshin), last night. It's nothing to tout for a film festival award, but it did show how consistent South Korean movies have become technically. Moreover, what impressed me most was the strong female lead, a single mother, although a murderer, whose husband cheated on her, and who is, at least until the plot twists, divorced. Another feature is the inclusion of a Japanese villainess, which I suppose will be a stock feature of South Korean movies for decades to come.

The best way to find out about South Korean society, its gossipy details and controversies, in the same way science fiction and horror movies reveal western society's underbelly, is to watch these B horror movies. Although, like Japanese ones, South Korean horror movies employ stock features, like ghosts with long, face-obscuring hair floating over the ground, it's more common to see strong, unconventional female characters and controversial topics, like divorce, infidelity, and single parenthood, in these flicks than in mainstream romantic comedies. And, there's the therapeutic benefits of a good shock.

Cross-Posted at Barbarian Envoy

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[boomerang] Posted by Infidel at 10:45
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Peking Duck: Peaceable Poultry or Communist Collaborator?

In June 18, 1976, hippie Christian rocker Pedro the Lion reminds us

Speeding toward the ground Through the air without a sound So gracefully

Twelve flights down, nearly naked on the ground
Skin and tragedy always attract a crowd

Well, considering that SimonWorld's quality has doubtless been speeding toward the ground without our Captain, and we've had plenty of skin (and commentary), it's time to throw some tragedy into the mix. Let's attract a crowd.

And what's more tragic than two bloggers who don't agree? Nothing.

So, without knowing anything else than Peking Duck is on Sinophile Simon's regular rotation, and that TM Lutas is on Sinophile TPMB's regular rotation, so both are extremely intelligent, well-spoken, and accomplished bloggers, I present

Peking Duck: Peaceable Poultry or Communist Collaborator?

From TM Lutas' account:

I picked up The Peking Duck into my regular blog reading because I think I should get more information about the PRC in my news diet. The header of the comments page was really optimistic:


Note to commenters: All viewpoints are tolerated. Comments will never be deleted or edited except in cases of blatant disrespect or maliciousness as determined by the site owner. Thank you for commenting.


Unfortunately, the actual policy doesn't follow the header. I'm banned. I still read the thing and occasionally try to comment on the odd chance that the ban might be lifted. Sigh, to no avail so far. Anyway, this article on Afghanistan got my fire up. Under the Taliban, articles critical of sharia were a quick way to commit suicide. Now, they're an entry into a slow, deliberate judicial process to determine whether a crime against the state religion was committed, something you might have easily seen in 19th century England.

My rejected comment below:

A US that were imperialist, colonialist, would be a miserable failure if this is the result of our imposed government in Afghanistan. A US that is trying to set up a process whereby real governments, chosen by Afghans, start the long process of reconciliation with the modern world would view the Karzai government as a success.

Ultimately, the lash punishments will fall if the people want them to in a free Afghanistan. The forces that support such punishments would have already killed the author and possibly the publisher of the magazine in question. Today, they're submitting the article for the government to decide whether charges should be filed. If you can hardly see a difference between the two, get better glasses

Was TM Lutas' comment out of bounds? Peking Duck too strict in censorship?

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[boomerang] Posted by Dan tdaxp at 10:19
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October 15, 2005
Dog Eat Dog

SFGate's Jeff Yang (via Foreign Dispatches' Abiola Lapite) puts as fair and humorous a spin on the East Asian penchant for dog cuisine as I've seen outside the blogosphere. Instead of indulge in relativistic discourse about boshintang and PETA protesters, a story from my wife during her morning hike up the mountain:

Old Woman: Where's your dog?

Wife: He's relaxing at home.

Old Woman (faltering voice): You didn't eat him, did you?

Wife: No! He's asleep!

Old Woman: Oh, good!

Going back to the previous post about South Koreans' supposedly xenophobic attitudes, the dog issue (and the plastic surgery shtick) would be reparable if South Koreans embraced globalization instead of resenting foreigners. If South Koreans tried to market their culture, say cuisine, the way the Chinese and Japanese industries have, perhaps Americans would have something more than bad, stock jokes to inflict upon South Koreans. I tell my students it's amazing how "sushi" and "sashimi" (and, I think, Korean-style sashimi, or "hwae", is superior) is so recognizable, but Koreans cannot even monopolize kimchi. When you can get a foreign culture to use your words instead of a translated word, you know you have done the job right.

Update: I just knew Marmot would have something to say about it, too.


Cross-Posted at Barbarian Envoy

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[boomerang] Posted by Infidel at 20:39
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What Part Of East Asia Is Important?

According to TNR's Joshua Kurlantzick (Subscription-Required), there's closet militarists in Japan PM Koizumi's entourage. Amid the cheering as Japan's Upper House approved a postal privatization bill on Friday lurks the fear that amending Japan's pacifist constitution to permit remilitarization could be on Koizumi's agenda. East Asian neighbors didn't ry to hide how much they would have preferred the opposition, a pro-pacifist, Democratic party, with its own postal privatization plan, to win the September 11 election. Now, Kurlantzick is get America on the bandwagon.

A more powerful Japanese military may be inevitable, even necessary, if Washington's relations with other countries in the region, such as South Korea and China, continue to deteriorate. And Japan today is a democracy with strong civilian control over the armed forces, which have participated effectively in international peacekeeping. But many American officials don't recognize the potential damage Japanese remilitarization will do to America's already shaky image in Asia. Americans may have forgotten about Japanese abuses in the Pacific Theater during World War II, but the populations of countries in the region have not, and these abuses are often magnified by nationalist governments in China and other Asian nations eager to deflect attention from their own shortcomings and to justify increases in defense spending.

(...)

If the United States openly backs Japan's rearming, it could find itself and Tokyo ostracized by vital allies like Korea and Thailand, moving it even further from China. Many Japanese hawks don't seem to care. "What's the solution to North Korea?" Okazaki asked me when I visited his office. "A closer U.S.-Japan alliance." "What's the solution to China? A closer U.S.-Japan alliance." He pauses. "What's the solution to South Korea?" You can guess the rest. But, in the long run, America might not like the answer.

Putting aside the good reform legislation the Upper House just passed, though, is progressive dread about a remilitarized Japan warranted? The part about China's and South Korea's "shortcomings" is a huge speed pump in the argument to ignore. According to a Joong-ang Daily poll---mind you, ROK newspaper polls are like editorials with a few more quotes than usual, because the polling samples as a percentage of population are smaller than the margin of error---67% favored a ROK nuke. Even more depressing are some of the xenophobic attitudes justifying that opinion. North Korea has also aroused Japanese voters' ire, and, as Kurlantzick argues, Beijing incited more than rhetoric after anti-japanese riots earlier this year:

Beijing also seems to be playing into Japanese hawks' hands. Japan provides China with roughly $1 billion in annual direct development assistance, but a rash of anti-Japanese riots in China this spring reinforced the positions of Japanese politicians like Abe, who have questioned this assistance, as well as the broader Japan-China relationship. After the riots, The New York Times reported, a poll by Japan's trade agency showed that the percentage of Japanese companies planning to expand in China fell by more than 30 points.

These are the choices! Sentimental favorites aside, the choice between which horse to back is like choosing between a crack-backed cripple (DPRK), a slick-looking gelding with a temper (ROK), an obese, oat-slurping manure machine (PRC), and a winner owned by a criminal syndicate (Japan). Let's not even discuss Taiwan! The only aspect of the choice facing Washington, when it considers an East Asian policy, completely in its control is its own reputaion. Whomever Washington favors assumes Washington's faults, too. One choice is not good enough, so Washington needs to buy two, China and Japan. How Washington puts two blood enemies into the same stable is the foreign policy progressive Democrats need to devise.

The long-term dynamic in East Asia is the generations' old rivalry between China and Japan that could erupt into war at any time. Korean unification looms over the horizon. The question of Taiwan's status requires attention. But none of these questions, including economic liberalization and democratization, can proceed until Japan and China are yoked together like Germany and France into a mutual defense community.

So, let's stop making Japan into the bogeyman, or China, North Korea, etc. All choices are bad. Secretary of State Acheson put diplomatic capital on the line, including East Asia's, to bang Western Europe into the Coal and Steel Community, so now Washington owes the region. Or, watch the region go up in flames.

Cross-Posted at Barbarian Envoy

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[boomerang] Posted by Infidel at 18:02
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Another Poorly-Placed Hack?

The Republic of T. warns about another potential leadership fiasco, this time involving another influenza pandemic, ready to break.

Tommy Thompson’s lawyer sidekick — who’s followed him from one job to another — is in charge of dealing an avian flu outbreak, should one occur on these shores. Nevermind that he doesn’t have, as far as anyone knows, a day’s worth of experience in dealing with public health emergencies.

This, on top of two pieces of disconcerting news from Silviu Dochia, is enough to send me to the hospital (and, I hate hospitals). First, avian flu has reached eastern Europe. Second, when Tamiflu is regarded as the best prophylactic measure against a pandemic and stockpiling it is the one measure most countries doing anything are doing, could be ineffective already.


Update
: Michael Osterholm on NPR explains how a pandemic diffrs from the usual infections seen in most cold/flu seasons and why Tamiflu is no panacea.

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[boomerang] Posted by Infidel at 16:56
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Asia By Blog (Super-Mini Edition)

Mark at ZenPundit ponders 185 IQ Asians. Twice. And asks how to create a tsunami bomb

Josh at One Free Korea notes a South Korean born in the North. Maybe many South Koreans long for dictatorship. Also the Chinese are cracking down on North Korean refugees. More on this soon...

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[boomerang] Posted by Dan tdaxp at 15:01
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The Feminine Form

Recent posts by infidel and me have sparked quite a discussion here at SimonWorld. In particular, what displays of female forms are appropriate for semi-formal blogs such as Simon's? By my count there are around twenty comments under two or three posts on the subject. No less erudite commentators than Curzon of Coming Anarchy, Jing of Those Who Dare, Phil of Flying Chair, Li Liwei, and many others have weighed in.


But what is the history of feminine forms in foreign policy circles?


In one dimension, we have examples of femininity as sources of international peace. For example, over at tdaxp I noted that Carmen Miranda's Brazilian features and background were used by the Roosevelt administration to build Hemispheric harmony.


carmen_miranda

Carmen Miranda: Connectivity Warrior?



In another way, countries and places themselves can be feminized. Nanjing is portrayed as a woman during the Rape of Nanking episode. In Europe, Finland is often called a kneeling maiden, with the south being her blouse and her arms and head reaching northwards.


finland_and_russia_sm

Maiden of Finland



In nationalist artwork, the Maiden of Finland is often combined with an evil representing the monstrosity of Russia


maiden_of_finland_attacked_by_hawk_of_russia

In Art



finland_and_russia_2_sm

In Life



World leaders try to exploit femininity to their own advantage. Memorably, Secretary of State Dr. Condi Rice attendend an official funciton in garb that reminded many of dominatrices. Alternatively, matronly qualities might be emphasized, as with former Secretary of State Madeline Albright



Secretary of State Condoleeza Rice




Secretary of State Madeline Albright



Otherwise, the feminine form and foreign policy will be juxtaposed in the interest of aesthetics. For instance, Dr. Thomas P.M. Barnett is a highly influential grand whose book -- The Pentagon's New Map -- is widely read within the security establishment. His latest published article, The Chinese Are Our Friends, is in the same edition of a magazine as Jessica Biel: The Sexist Woman Alive (hat-tip ZenPundit).


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[boomerang] Posted by Dan tdaxp at 03:56
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» tdaxp links with: Teaching Barbarism




October 14, 2005
Cyber-Journalist Handbook

Alecks Pabico at INSIDE PCIJ announced a one-day conference on October 22 in Manila for mainstream journalists and bloggers. Pabico has a link to Reporters Without Border's Handbook for Bloggers and Cyber-Dissidents (.pdf file). RWB's Handbook covers the basics, Dan Gillmor's Ethics, testimonials, and ways to circumvent censorship.

As I've said before, I'm sceptical of the blogosphere's claims to perform journalism. "Cyber-Journalist" sounds less Stalinist than "Citizen-Journalist", but then both sound like something Wiley Coyote would say. Perhaps blogging reminds me too much of three old ladies playing bridge. Or, that I knew the most about anything when I had a security clearance, and I'm glad not to have it anymore. There's just no joy in knowing everything. I just like to see everyone talking, not just the suits.

Cross-Posted at Barbarian Envoy

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[boomerang] Posted by Infidel at 16:05
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Blogspirit Problems

Just a quick note that I apologize for any problems clicking on the links I put up. Somethingw is wrong company-wide at , which hosts tdaxp and many other good sites.

404d!

As Dan Rather might cryptically say: Courage

Update: Apparently, it's some sort of denial of service attack:

10/14/2005, 07:40 (GMT). blogSpirit.com platform was attacked last night. We decided to suspend the service in order to identify precisely the origin of the attack and to reboot the platform. This might take a few hours. Please accept our apologies for the inconvenience. Be sure that we are doing everything to make your service available without delay.

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[boomerang] Posted by Dan tdaxp at 13:44
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Neolithic Noodles

Like Momma Made

According to an NPR report, the dispute concerning the first region of the world, China, Italy, or the Middle East, to feature noodles on the menu, is settled. According to archaeological remains from present-day northwest China, the Lajia site is the winner by thousands of years. The noodles, made from millet, disintegrated into dust upon contact with the air. If only those annoying little morsels of noodle too small to pick up did that.

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[boomerang] Posted by Infidel at 09:46
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October 13, 2005
Battle of the Babes

To celebrate the "A" I received in Survey of International Relations, and because that last post really burned me out, here's some eye candy:







woo...


Originally uploaded by waikeat.









IMG_4417


Originally uploaded by Merina.




Oh my!
Originally uploaded by Maxx Manboeuf.


lesbo_00591
Originally uploaded by zchendevlemh.



nhel_0005
Originally uploaded by zchendevlemh.





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[boomerang] Posted by Infidel at 20:13
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» Flying Chair links with: Simon's gone down under
» links with: mr chews asian beaver
» software articles blog links with: usefull software recommend
» more babes action links with: free babes show
» spyware software tips links with: new spyware removal
» babes photos tips links with: free babes pics
» something about software links with: more software here




The Korean Dimension

It's easy these days to feel despondent about US-ROK relations. Although the Roh administration cooled with ordinary tap water rhetoric surfacing from a left-right confrontation over MacArthur's statue at Incheon, it has returned to form with a request for operational command of ROK military forces from the USFK. It's not the idea, but the timing I find suspect. So soon after the 60th Anniversary of the DPRK, this looks like the Blue House is trying to give Pyongyang an appeasing gift. South Korean conservatives, too, appear particularly lame in rebuttal:

Taking back operational command may sound splendid, but the price we would pay is a fatal security risk. If the defense reform budget of W289 trillion (US$289 billion), is premised on the retrieval of operational control, the country will shoulder far greater costs than it needs, to pay for the phrase "independent armed force." If not, we have to be prepared for huge additional costs for the sake of retrieving operational control. Does the government feel that our national security and public finances are capacious enough to permit us to get drunk on a phrase?

According to Richard Halloran, USFK's relationship with South Korea is changing regardless of Seoul's perspective.

In addition, the headquarters of the Army in the Pacific is preparing to assume command of Army forces in South Korea, which are gradually being reduced and may eventually be largely withdrawn. Plans call for dismantling or shrinking the United Nations Command in Seoul that dates back to the Korean War that ended in 1953.

The Army also plans to transfer the Eighth Army headquarters from Seoul to Hawaii and to turn back to the South Koreans control of their forces commanded today by a joint U.S.-South Korea headquarters. The four-star American general's post in Seoul would move to Hawaii.

Military officers say this could happen by 2008 or any time after. The official line is that the threat from North Korea must lessen and stability come to the peninsula first. The unofficial betting is that rising anti-Americanism in Seoul will cause that move to be made more sooner than later.

Proving why economics is not the exact science it purports to be (and, shouldn't be), OFK scoops the Scoop Jackson Bill, a year-old US House relic having more to do with protectionist backlash against Beijing than sincere wishes for the human rights situation in North Korea. It will probably be folded into another trade bill.

Amid all this seriousness, is a cumulative accretion of shoulder-shrugging, head-shaking weirdness.

1. The Unification Baby

2. The Unification Minister NK Refugees Hate

But some leftists realize South Korea's human rights stance is wrong.

3. The 2005 Chinese Kimchi Scare

4. The Traitor (both Marmot and Lost Nomad express their disbelief)

Joshua at OFK also reports on the US House International Relations Committee hearings featuring Amabassador Christopher Hill. Aside from what is purported to be his stand on verification, the US Congress' perceptions of South Korea could lead to a collision with the White House. KJ also chimes in, about the Democrats:

If you start out with a discussion of key issues by saying simply the "depth of NK commitment" to denuclearization rather than concrete tangible far reaching steps toward such a denuclearization, you have so lowered the bar North Korea has to jump over to get significant amounts of what it wants, you are actually making future progress more difficult.

Fortunately, the House does not approve treaties. But, as with the afore-mentioned trade bill, it can cause problems elsewhere.

Finally, though, a slice of good news with the huge dollop of bile. Without reading (via Lost Nomad) the JoongAng Ilbo and the East Asia Institute poll questions, these results seem to indicate, that there are significant numbers of far-sighted South Koreans, even if elite opinion is pro-unification.

Views on North Korea have changed significantly, the survey said. In the past, South Koreans considered the North as temporarily off-limits national territory that should be reintegrated as soon as possible, the group studying the poll results said, and considered reunification the nation's major task. But this poll said that longing for unification is weakening; 78 percent of those surveyed said that the two Koreas are separate countries.

Two things leap to mind here. First, with ROK President Roh Moo-hyun's approval ratings so low, and North Korea such a prominent crutch in the progressives' dismal ruling performance, the poll could indicate support for other parties. Second, the Bush administration, as it has done admirably on the recent Islamic radicalism speech, needs to reframe the debate over North Korea, for South Koreans' benefit.

Cross-Posted at Barbarian Envoy

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[boomerang] Posted by Infidel at 19:48
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Asian Babes by Blog

While not lambasting George Bush and Harriet Miers, I've been reading feminist troddle. Surrounded by feminist troddle. Feminist troddle so bad it made one reader comment


Gawd. I'd rather amputate a finger than read that garbage



So in the interest of equality, in the interest of moving SimonWorld from #2 to #1 for the Korean Babes search, increasing SW traffic, engaging in type type of post I'm apparently known for, and self-promoting, and promoting peace throughout the Continent, I present


Asia by Girls








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[boomerang] Posted by Dan tdaxp at 13:10
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October 12, 2005
The Peaceful Fight for the Mekong

In Simon's absence, a quick plug for the guys at Coming Anarchy.... particularly, Chinese and Japanese struggling for the Mekong

Moves between Japan and China over the development of the Mekong River basin show signs of intensifying as Tokyo is trying to regain some ground lost in recent years to Beijing in the economic backwater of East Asia…

The Mekong region has huge potential for economic growth. In the late 1980s, then Thai prime minister Chatichai Choonhavan advocated turning Indochina “from a battlefield into a market”. Now that Cold War conflicts are a thing of the past and the CLMV countries are accelerating free-market reforms launched in the late 1980s, Chatichai”s slogan is no longer a mere pipe dream, it is a reality, although it will still take some years for private-sector investment in the Mekong region to become a flood, not just a trickle…

Self-promoting tdaxp highlighted China's expansion into Shan State, Burma, earlier...

Remote and once dirt-poor Mongla has been reborn as a tourist destination, a process that started in 1989, when Myanmar's army reached a ceasefire and autonomy deal with the Shan. The local warlord, a Shan Chinese named Sai Leun (also known as Lin Mingxian), built Mongla with an unorthodox mixture of opium profits and technical aid from China's neighbouring province of Yunnan.

Around 350,000 Chinese tourists visit every year to gamble, frequent the massage parlours, and perhaps take in a Thai transvestite show. Lin Mingxian, as he was born, has clearly come a long way from his days as a Red Guard during the Cultural Revolution in the 1960s. Mongla's authorities earned $9.6m from tourism in 2002—and it is entirely possible that they concealed some of their income.

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[boomerang] Posted by Dan tdaxp at 14:05
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October 11, 2005
Disclosing Xinhua
Although it is more and more regularly cited as a credible source - nearly one third of the news reports on China selected by Google News originate from the agency - Xinhua, the head of which has the rank of minister, is the linchpin of control of the Chinese media.

Successor to the agency, Red China that was founded by Mao Zedong, Xinhua adopted its current name in January 1937. Since October 1949, this state-run news agency has been completely subordinate to the CCP.

The Reporters Without Borders’ report includes accounts from several Xinhua journalists who agreed, on condition of anonymity, to explain how the control imposed by the CCP’s Propaganda Department operates on a daily basis.

By Reporters Without Borders (.pdf).

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[boomerang] Posted by Enzo at 22:53
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» Wallo World links with: The Chinese Propaganda Machine




Super Girls Rock Beijing, But Not Establisment

After a recent cover picture in Time Asia, a wildly successful concert in Shanghai, and bestowed the honor of "Iconoclast" Li Yuchun and her underling Super Girls held their most recent concert of their mainland tour in Beijing on Sunday to a loud and seriously excited crowd. It seems there is little that can stop them now. Hell, Li Yuchun might get an island in Antarctica named after her.

Indeed the Super Girls are showing real sophistication. Not to be labelled mere teeny boppers, the Super Girls held an auction last week to sell some of their clothes they wore on their show and front row tickets for the Beijing gig. The auction raised over 300,000 RMB for a local charity to send underprivileged kids to university. Certainly these girls know how to please their constituents.

All decked out in white on Sunday night, the Super Girls showed they weren't all innocent baring a lot of Super skin for their debut in the capital. Li Yuchun, often ridiculed for looking and sounding confusingly androgynous even hopped in on the scandalous action, wearing and then taking off a short black skirt mid performance. Alas, all of you 'Chun Chun' fans, the skirt was worn over her pants. Glow sticks were the hot accessory and there was a spontaneous demonstration of future Olympic javelin hopefuls as the show neared its end and thousands of fans launched their 2 kuai sticks onto the hundreds of police officers standing shoulder to shoulder on the field making sure no one got out of line.

Is this the first wiff of democratic reform in China? Most competent people would say no, but that hasn't stopped plenty of journalists from speculating. The TV station that produced Super Girls was so nervous of this implication that they called the SMS votes "messages of support". On the other hand, does Li Yuchun's gender bending, confident persona empower young girls all over the provinces? This blogger thinks this theory is a more likely thesis and a fresh break from the pointless daintiness of most Chinese pop stars today that is outdated in the new China.

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[boomerang] Posted by Austin at 19:14
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» Austin Arensberg links with: Cross-Posting and Asiapundit’s Post on the Guardian Debacle




Kang Cheol Hwan talk notes

Cross-posted at Andrés Gentry.

On September 27 Kang Cheol Hwan gave a talk and question and answer session at the Graduate School of International Relations and Pacific Studies at UCSD.  He spent 10 years in a concentration camp in North Korea and after escaping North Korea eventually became a journalist for the Chosun Ilbo.  He is on a speaking tour of the United States talking about conditions in North Korea as well as promoting his book, The Aquariums of Pyongyang.  His speaking tour is sponsered by LiNK (blog)and Freedom House.  I attended his talk and following are the notes I took.  Any errors are mine alone.

Professor Stephan Haggard

1.    Three issues

  • Prison system:  approximately 200,000 political prisoners which is approximately 1% of the population
  • Food: 1993 began famine, conditions have yet to ease substantially
  • Refugees
    • People moved to find food: north to China: 30,000 – 200,000 refugees

    • Has become more difficult in recent years

2.    Introduce speaker: Kang Cheol Hwan

  • At age 9 family was sent to political prison for 10 years
  • In 1992 escaped, now works for Chosun Ilbo as a journalist

Speaker: Kang Cheol Hwan: translator’s name unknown

1.    Escaped so as to reveal the concentration camps of DPRK
2.    When 1st went to China was surprised by its freedom

  • Even more surprised by ROK’s level of freedom

3.    DPRK government continues to educate its people that USA is a terrible country
4.    Has thought how to reveal truth of the outside world to North Koreans, to explain USA protects human rights
5.    Speaking tour is to explain how human rights are violated in DPRK
6.    “How come North Koreans don’t protest their conditions”: most common question he hears
7.    When visited Holocaust Museum in DC realized similarities between Holocaust and DPRK

  • Hitler, Stalin, DPRK: all had concentration camps
  • Kim Il Sung’s death: DPRK was supposed to change afterwards but it actually got worse under Kim Jung Il

8.    There are 6 concentration camps in DPRK
9.    His grandfather lived in Japan and returned: that is why his family was incarcerated
10.    Those who helped USA in Korean War and Christians imprisoned, even their grandchildren
11.    After 3 months in camp he nearly died of starvation
12.    Korea has good environment: people shouldn’t starve to death
13.    3 steps in malnourishment

  • 1st: skin around eyes peels off, belly gets big, becomes difficult to go to the bathroom
  • 2nd: try to eat anything: bugs, worms, snakes, mice

14.    Ate meat once in concentration camp: it was a mouse.  Children roasted it, it was the best food he’s ever had

  • Children would eat anything, adults didn’t and so starved

15.    In winter ground is frozen so graves are shallow.  In spring the bodies reemerge: thought if there is a hell then this is the place
16.    1966: DPRK went to World Cup quarterfinal

  • The day before the game they went to a bar and didn’t perform well the next day and lost.  When they returned to DPRK they were disappeared.  A famous player was sent to concentration camp.  In order to survive he ate all the bugs he could find.  He especially like cockroaches, hence his name “cockroach”.

17.    Public executions

  • DPRK still has them
  • 1998: Agriculture Secretary was executed: blamed for the mid-1990s famine: accused of collaborating with USA to make the famine
  • Executions happen every day in DPRK
  • In DPRK day before execution they are beaten
  • Before execution mouth is stuffed with cotton to prevent yelling, now rocks are stuffed in their mouths, breaking their teeth, because they still yelled against Kim Jong Il
  • North Koreans who always see this can’t think of protesting

18.    South Koreans who protested for freedom would not be able to do that in DPRK
19.    DPRK is not unique: Nazi Germany and USSR did the same

  • When totalitarianism and a single ruler exist then mass executions occur
  • But DPRK is currently the only country that kills masses of people

20.    ROK and international community don’t care about this problem
21.    No one saved Jews from Hitler’s concentration camps
22.    As a journalist, he still hears from DPRK but now it’s different then when he was there

  • Now the economy is totally collapsed
  • DPRK has no electricity: only one dot at night can be seen from space

23.    “Why is DPRK starving?”: he wants to answer that if North Koreans were given freedom they would find food
24.    International food didn’t save any North Koreans

  • Commoners get no food, only army
  • Army is approximately 1.5 million
    • Even with economic prosperity it would be hard to support so many soldiers

25.    Given current government, there is no way food aid will go to the common people

  • Even after 8 years of food aid: DPRK is just trying to rebuild the old system so people still die

26.    Instead should pressure for human rights instead of giving food aid
27.    Korean Peninsula and USA have special relationship
28.    38,000 US soldiers died in Korean War: This debt helped build up ROK economy
29.    He hopes DPRK soon gets freedom and good relationship with USA and human rights
30.    If American people get interested in human rights then their government will also be interested

Questions and Answers: translator: Adrian Hong: Executive Director of LiNK

1.    Comment on defectors’ lives in South Korea: jobs, discrimination?

  • Even for educated people adjustment is difficult because educational systems are so different
  • Now so many defectors in ROK so that South Koreans are no longer interested

2.    Are there no uprisings?

  • In fact there are many
  • Last year’s train explosion was anti-Kim Jung Il
  • Believes Kim’s power is waning: cannot move freely around country: 30,000 troops always around him

3.    How supportive are South Koreans of Kang?

  • Before 1998 ROK worked hard to reveal DPRK human rights abuse.  Since then and Sunshine Policy ROK no longer says much
  • Ask young South Koreans now and they would know nothing about DPRK
  • ROK government media paint a rosy picture of DPRK
  • 3,000,000 died, 200,000 in concentration camps, but no South Koreans protest that.  Instead they protest the 2 girls killed in US military accident
  • 1992 attended South Korean university, saw students protesting and singing, listened and discovered they were singing a Kim Jong Il 10-min propaganda song.  When asked the South Korean students didn’t know what the song was.  Went to student government and found all books were DPRK propaganda
    • This explains growth of anti-Americanism in South Korean students

    • Believes this is due to DPRK agents: how else could South Koreans learn North Korean songs?

4.    Why would ROK act as they do (since it makes no sense)?

  • He doesn’t get it either
  • 386 generation: many see DPRK favorably and now they’re in power
  • 386 believes you change DPRK by sending food and saying nice things and that’s it
  • ROK has a strong protest culture for democracy and this has transferred to protesting for DPRK

5.    What suggestions for US and international policy and contents of his Bush conversation?

  • Talked for 40 mins
    • Most important: human rights should be ahead of nuclear issue
    • Kim Jong Il will never up his weapons
    • This will only increase anti-Americanism in DPRK
  • Human Rights: be direct and specific about concentration camps: only this way will DPRK change
    • First priority is undermining anti-Americanism by pressing for human rights
  • Defectors relieved when Bush called DPRK evil
  • Because ROK protestors and DPRK protested ROK dictators so ROK protestors think DPRK is also for democracy

6.    Can China help solve this problem?

  • Can defectors escape China: big issue: China now repatriates refugees
  • Because of Beijing Olympics China wants this problem to go away: so repatriates refugees
  • Repatriation causes bigger future problems
  • Would like China to pressure DPRK on human rights

7.    Role of big ROK corporations in this issue?

  • Hyundai and Samsung
    • Hyundai runs tourist deals to DPRK
    • Samsung has few contacts still
  • Believes recent Hyundai suicide was related to his work with DPRK
  • Hyundai had been reconsidering its deals until ROK Unification Minister criticized ROK companies for not working more with DPRK

8.    Does Kim Jong Il have children or is there a military hierarchy to take over after his death?

  • After Kim Jong Il’s death there’s no way it won’t change
  • No heir yet named
  • Some speculation centers on his sons
  • Expect something big to happen at the transition

9.    How should/will reunification happen?  In past, liberation was by foreigners, so can reunification happen just by/through Koreans?

  • Any reunification through DPRK’s collapse would be bad
  • There should be a transitional government, like current-day China’s, before reunification
  • However, ROK’s Sunshine Policy is pushing North Korean people away just to curry current favor with the DPRK government
    • This is throwing away the chance of not having foreigners interfere in the reunification

    • Has ROK helped refugees in China?  No, they’ve helped Chinese to prevent refugees to flee.  How do you think North Koreans feel about ROK because of this?  This makes it impossible for only Koreans to be involved in their reunification and foreigners will be involved.

10.    Does Korean proximity to DPRK military explain why they don’t focus on human rights?

  • DPRK does not have the ability to win war so doesn’t believe it is genuinely interested in war
  • War = Kim Jong Il over
  • ROK is looking at this wrong: Kim Jong Il is richest man on the peninsula: do you think he wants to give this up?
  • Biggest ROK security risk is not nuclear, it is the artillery and troops just north of the DMZ
  • If ROK is truly interested in welfare of DPRK troops then ask them to move away from the DMZ
  • Talk about how this is the best period in inter-Korean relationship, but in fact this is the most dangerous period

11.    US troops in ROK

  • Highest ranking DPRK defector says Kim Il Sung was so beaten by US in Korean War that he only feared US forces
  • DPRK military thinks ROK army is a joke since it was such a pushover in the Korean War
  • Day US leaves is day DPRK invades

12.    Kim Jong Il or Communist Party structure center of power?

  • Kim Jong Il is center of DPRK

13.    How can ROK have direct communication/talks with DPRK?

  • Many South Koreans travel to DPRK but no a single person has escaped their minders to talk freely with a North Korean
  • DPRK had dilemma for Koreans in Japan to get them to send money: solution: make a façade and give yourself a good image: similar things now happening to ROK tourists
    • ROK tourists: get very sanitized version of DPRK.  Doesn’t understand why South Koreans don’t complain about this
  • Tourism is just donating money to the DPRK government

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[boomerang] Posted by Andres at 16:34
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Thinking About Thinking About China

Before I get to the type of post I am known for, I wanted to share an experience from my teaching at a pretty nice college in America.

We had a quiz on world events, and one of the "easy" questions was members of which political party in China joined with peasants in a recent political demonstration in a certain province. Many intelligent students had a problem with this -- typically choosing instead the "Chinese Nationalist" party from a multiple choice list. Many did not choice the correct answer -- the Communist Party.

To me, this is hopeful. China is not recognized as a Communist country. I'm not that much older, but I remember Pravda, the Berlin Wall, and President Bush announcing the reduction of some nuclear missiles in Europe. As American neoisolationists like Nancy Pelosi (on the Left) and Pat Buchanan (on the Right), it's heartening to see their most powerful weapon ("But they're Communist!") will not fire.

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[boomerang] Posted by Dan tdaxp at 13:24
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Taishi and the backlash

The Guardian has now confirmed that the stories of Representative Lu Banglie's death were greatly exaggerated. Lu was severely beaten and then carried to a nearby hospital before being driven back to his home city of Zhijiang in Hubei Province. This occurred some time after Benjamin Joffe-Walt, the Guardian's man on the scene, had already been taken away, and was apparently in some panic.

Chinese journalists are already criticizing Joffe-Walt, accusing him of naivete, wilful exaggeration and even outright lies. One blogger/journalist says that "lies cannot create justice", and that the Guardian newspaper is "continuing to back up the fantasies of Benjamin Joffe-Walt".

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[boomerang] Posted by Running Dog at 12:25
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» Austin Arensberg links with: Foreign Journalist Gets a Pass, Chinese Fixer/Activist is Beaten in Taishi
» Bingfeng Teahouse links with: key points of the Benjamin-report debate
» peking-duck links with: A Coward in Taishi and the Hypocrites
» GZ Expat, Part II links with: Frightening...update




Beneath Notice

I share Macam-Macam"s indignation concerning the Muzaffarabad earthquake. The death toll is conservatively estimated to be around 20,000, but there is overheated rhetoric about a "dead city" and a "lost generation" already. As if hurricanes, typhoons, floods, and tsunamis were not enough, now one of the world's most troubled regions is buried under rubble.

This harrowing disaster is made even more bitter, considering that most of the victims are reported to be children crushed under debris while studying in urban schools. The CSM has advocated the least costly solution, earthquake-proof schools. Any hope of a Greek-Turkish reconciliation between Pakistan and India, which both claim the disputed Kashmir region where the earthquake took place, have also been flattened. Both sides of the disputed border suffered casualties, but Pakistan received the largest shock by far.

For those needing a silver lining, though, there is the hope that the jihadis and their infrastructure suffered disproportionately to the rest of the general population affected.

As aid begins to flow into the stricken region, and more requests go out, though, I have to ask again, as I did in the aftermath of the December, 2004 tsunami and Hurricane Katrina, if this disaster in Kashmir is not a man-made disaster? Donor fatigue is certain to rise, as the number of disasters increases, with hurricane/typhoon season still dragging on. Can we not at least evaluate the local governments involved in all these disaster operations, from Louisiana to FEMA, from Colombo to Jakarta, and New Dehli to Islamabad, to both prevent a disaster and to react to them? After all, none of these regions affected are strangers to their respective menaces. I have to ask, too, if these governments are not culpable. Is there not a better policy than to wait for disaster to strike, and then beg the international community for assistance that is always promised, yet seldom materializes? Why would anyone want to live in a disaster zone? Why would a government let these people do so?

Commenting on ideas circulating to rebuild New Orleans in the wake of Katrina, The Economist, offered this depiction of merely one of Washington's failings (subscription-required) operable in Kashmir as well:

Hurricane damage is covered by private property insurance, but since 1968 flood insurance has been provided by the government, through the National Flood Insurance Programme.

Although this insurance is both subsidised and obligatory for anyone with a federally-insured mortgage, remarkably few people in the Gulf Coast seemed to have it. In Mississippi's coastal countries, less than one in five households have flood insurance; even in New Orleans it is under half. In Mississippi, Richard Scruggs, a lawyer famous for taking on the tobacco industry, has already asked the state's attorney-general to challenge private insurance firms' ability to exclude flood insurance on the grounds that this exclusion is “unconscionable”.

So far, Congress has focused on giving the flood-insurance programme more money. The likely pay-outs to those who have flood insurance are around $10 billion but the federal plan has only about $1 billion of reserves. On September 12th, Congress raised the amount the flood plan could borrow to $3.5 billion. That figure will surely go higher still; and there is also the potential cost of helping both the uninsured and the underinsured—through subsidised loans and the like—to rebuild their homes and businesses.

In theory, Mr Bush could use this opportunity to reform the system and reduce the extent to which Uncle Sam subsidises people living in disaster-prone areas. But raising premiums and making insurance mandatory are both unpopular.

One of the aspects I like about Robert Kaplan's, Benjamin Barber's, and Michael Klare's work is the role they allot for ecological factors in their respective International relations theories. The confluence of poverty, globalization, ethnicity, and religion overlaps with hostile ecosystems. Ideally, there are few desirable places where humans can live, and human hubris and technological ingenuity seem daily to limit even that narrow space even more. In return for settling marginal areas, governments should make certain those areas are safe and at least return to the nation's coffers what others have to donate in taxes and charity to make them habitable. Insurance, sane zoning, controlling population growth, and tax policies are good starts. Humans continue to settle in areas unfavorable for the species' survival, and governments keep ignoring them. It's better to encourage individuals to better themselves, than to support marginalized people having producing dead statistics while the fortunate have babies.

We are mourning for people who died dead, the unfortunate statistics of human pride and misgovernance, surplus labor and prejudice. It's not enough to ask how money could have been better allocated. We have to ask why we all are content just to throw away money not to consider that.

Jodi has a link to the Mercy Corps.

Donate to the Red Cross

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[boomerang] Posted by Infidel at 12:17
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October 10, 2005
Communist mafia

Lu Banglie is probably dead (in front of a foreign correspondent):

The last time I saw Lu Banglie, he was lying in a ditch on the side of the street - placid, numb and lifeless - the spit, snot and urine of about 20 men mixing with his blood, and running all over his body.

The last words of Mr Lu I wrote down were: "The police cover their arses. They employ all these thugs whose lives mean nothing to them to kill you. That's why once we are in this we can't go out."

Read the whole dreadful story.

Let's see how this time Hu and company will shake this stuff off. No doubt they'll do.

Update. CDT reports that Lu is alive and has been sent back to his home (his condition unknown). Good news for Lu's life but the substance doesn't change.

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[boomerang] Posted by Enzo at 23:36
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Avoiding Armageddon

Michael Turton and David Thailand both report on Paul Monk's controversial suggestions on China-Taiwan relations. On the surface, Monk's argument doesn't seem worth noticing, until one gets past the safe rhetoric to the bottom of the transcripts and editorials. At first, Monk reads like a good realist, with his talk of calculating costs of war and maintaining balance. It's when he talks about doing politics like economics, that I had to clear my throat. There's no intuitively suspect notion, then the realist pipedream, that power is calculable. It doesn't always work in economics, either, but politics is never tidy.

Until Monk goes back to 1912:

The pivotal moment in China's modern history was not October 1949, when Mao established a dictatorship that was to bring suffering and death on a staggering scale to China and keep it impoverished for a generation. It was in December 1912, when national legislative elections were held in China for the first and, so far, the only time. Forty million people voted and they elected 596 representatives, of whom only 269 belonged to the Guomindang, Sun Yat-sen's party. (There was no Communist Party at that point, of course, and it has never subjected its mandate to a popular vote.)

From this point, it's possible to talk about the real problem in Sino-Taiwan relations, or why Beijing needs to have Taiwan. By defanging the dragon, the threat to Taiwan is neutralized while the mainland is consumed in its own political problems. But, Monk then puts his realist-cum-government hat back on, and starts talking like a very Australian realist:

Well Australia is an unusual country. Australia has very good access in the, let's say, the culturally and geo-politically dominant Anglo-American part of the global economy and the sort of geo-strategic environment. So we're an advanced English-speaking country with very good access in Washington, better than ever now, and we're a major trading partner of China. We're an unusual country in the Asian region. We're the oldest democracy in the Asian region. And we're non-threatening because we're not a major power with military ambitions, despite the paranoia of some people in Indonesia from time to time. So there are very good reasons why thoughtful people in China might think we can sound out ideas in Australia.

II seriously doubt a foreign country can convince the Chinese Communist party to cede control, to downgrade the 1949 revolution, or to give Taiwan any share in the historical credit for China's world role. Monk wants to compare Britain to China, and Australia (or Hong Kong) to Taiwan, to set a precedent for a peaceful devolution of power. But, like Britain and America, China and Taiwan are part of an international contest between China and Japan, as the Anglo-French wars of the 17th-19th Centuries gave the American colonists a chance to break from London. In this sense, Australia's courtship with Beijing doesn't make sense, because Australia would lose economically if it had to choose between Japan and China. Monk's vision of Australia's mission to reform China is the most ridiculous part of his re-think.

Rethinking realism is a good part, but only if Monk realizes that the zero-sum game Beijing sees is not related to economics, but to Taiwan's place as a pawn in its contest with Japan. Australia does have an interest in delaying armageddon, so it can keep getting rich off both antagonists for as long as possible. Tokyo and Japan will have to come to the end of that path by themselves, and no country that didn't have to bleed for its independence will convince the two blood enemies to put down swords.

Cross-Posted at Barbarian Envoy

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[boomerang] Posted by Infidel at 20:05
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Things are falling apart dept.

The magnificent ESWN has has translated an article about the "centrifugal" and "centripetal" pressures now tearing China apart, and suggests that local authorities are now in a position to defy the leadership of Hu Jintao and Wen Jiabao. After years of jockeying and alliance-building by the power-hungry Jiang Zemin, the local authorities hold considerable positions of influence, and the new boys are still dealing, among other things, with entrenched Jiang supporters in both Shanghai and Guangdong.

Meanwhile, another website, erm, particularly dear to my heart notes that the leadership are increasingly reluctant to throw their full force against the various protection rackets that pass for local governments these days, lest the entire edifice of power come crashing down. These are parlous moments for the Party.

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[boomerang] Posted by Running Dog at 19:50
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Despotic Links

Simon does a wonderful, and incredibly painstaking, job of linking to all blogs Asian. I have always thought, though, that he didn't report enough from the dark side of the moon, the lunatic fringe, the countries too poor and censored to have blogs. So little information comes from these places, that it's just bound to lead to misperceptions, slick generalizations, and outright abuse. In short, perfect material for the blogosphere!

Fortunately, The New Republic's T.A.Frank, and his Today in Despotism column (subscription-required), is not bound by the blogoshere's rigid, majoritarian code of conduct. North Korea and Burma are such wacky places, and since I can't access the KCNA in South Korea, I appreciate the chance to subvert the censors, with and without a proxy.

First of all, the 15th volume of the Dear Leader's Collected Works is due soon. God, Kim is a phenom, ain't he? Why doesn't he just blog? Oh well, some of us get Blogger and others become despots!

This week's KCNA bashed Japan and its pretensions to world-leader status. According to a column quote,

Japan's attempt to buy a responsible position at the UN is little short of a clumsy bid of an illiterate country peddler bereft of any reason and people's mindset. Japan would be well advised to properly know where it stands and liquidate its crime-woven past as early as possible so as to be trusted by the international community.

the KCNA's version of legal behavior stops at ofensive militarism, as opposed to the nukes, drugs, and counterfeiting Pyongyang markets. No mealy-mouthed diplomatic-speak about imperialism and expansionism; Japan is a crook! Speaking of Allied revanchist policies at Versailles, J.M. Keynes, in "The Capacity of Germany to Repay Reparations" (1919), argued, "In the great events of man's history, in the unwinding of the complex fates of nations Justice is not so simple. And, if it were, nations are not authorized, by religion or natural morals, to visit on the children of their enemies the misdoings of parents or of rulers." It's a long time past just to get over the Japan WW2 reparations issue. Millions of North Koreans will be thankful for the precedent when, after unification, vengeful South Koreans, hunt down ideological foes and property-holders to settle generations-old scores.

In Burma (Myanmar, whatever), there's a real need for spare parts and poets. And, just to punctuate how some governments feel about the IAEA's new Peace Prize, there's this ditty by Byan Hlwar:

The bestowing of the Peace Prize Is not the granting of licence To scheme to interfere In enclaves and communities of others Or to act untowardly. The possession of that Nobel Peace Prize Is not to be interpreted As whatever the receipient does To be accepted by the world as all fair. If receipients of the Nobel Peace Prize Are discovered as working to destroy a nation And clearly discerned by Alfred He surely will turn in his grave Remorseful that what he had Initiated and established Had gone wrong He would only lament regretfully.

Who said political poetry can't rock?

Cross-Posted at Barbarian Envoy

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[boomerang] Posted by Infidel at 16:37
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Taishi: a case study of repression (Updated)

The wash-up from Taishi*, a village where a genuine attempt at grass roots democracy was unceremoniously suppressed. ESWN reports that a Guardian journalist investigating the village was reportedly bashed at Taishi by Government heavies. Also, yesterday, Radio France's Abel Segrein and South China Morning Post's Liu Xiaoyin were assaulted by more than twenty people. A colleague of Abel Segrein, Pierre Haski, has a blog in French with more details on Abel Segrein's visit to Taishi (a reasonable Google translation in English is here).

ESWN has an updated chronology of all the events at Taishi.

What happened in Taishi was incredibly significant but it has not been widely reported in the Western media. Why? Because the Western media are effectively barred from reporting it, through violence and threats. Welcome to media management, CCP style.

Update (10/10)

Today's SCMP has Leu Siew Ying's first hand report of her visit and beating last Friday at Taishi and another report on a similar incident on Saturday: the detention of legislator Lu Banglie, a deputy to the Zhijiang People's Congress in Hubei province, on a visit to Taishi with Guardian newspaper reporter Benjamin Joffe-Walt. I had spoken to Mr. Joffe-Walt on Saturday afternoon, before the incident had occurred. He was seeking to do an article on the real story behind Taishi.

When government thugs start detaining legislators and beating Western journalists, the alarms should be ringing at maximum volume. Kudos to Abel Segretin from RFI, Mr Joffe-Walt and Leu Siew Ying for persuing the story. As the saying goes, when there's beatings, there's a story.

* Link is to a newly established category containing all my Taishi related posts

"They were working themselves into a frenzy"

Radio France Internationale reporter Abel Segretin and I went to Taishi last Friday to find out why residents suddenly abandoned a bid to recall their village chief. During previous visits I had been detained twice - the windscreens and windows of my taxi were smashed by paid thugs. A lecturer and two lawyers had the same harrowing experience three weeks later, so I knew I had to be careful. Segretin and I agreed that we would not resist if caught, but we did not get any further than a roadblock set up by the local authorities. A few men with red armbands marked "security" forced us off our motorbikes. Straight away, another 20 people closed in on us - some wearing army camouflage - and asked for our identity papers. We asked them who they were and a well-dressed man said "villagers".

I told him I was not obliged to identify myself to anyone but the police. He said if we did not show him our identity papers he would leave and would not be able to control the others. He also revealed that he knew we had got out of a taxi in Shiqi to continue our journey by motorcycle.

The man then called police while Segretin asked why we could not enter the village. People started shouting, saying we had caused trouble for them and cost them their livelihoods. One tried to force us to sit down, while two others grabbed Segretin's forearms. When he pulled himself free, I could see red marks they had left. One man punched him in the waist and another whacked me across the head with a blow that sent me tumbling forward. Fortunately, I was wearing a broad-brimmed peasant's straw hat that cushioned the blow, so I was more shocked than hurt.

I was trembling and kept telling my colleague we had to leave. We tried to, but the men stopped us. I told him not to talk to them because the mood had turned very ugly and I could see that they were working themselves into a frenzy. I felt they were waiting for us to provoke them, and I was terrified that my companion would get badly beaten - and that I would be next.

I have reported on China for seven years and this was the first time I have been beaten, although I have been detained numerous times.

Legislator missing after being beaten near Taishi

A mainland legislator has disappeared after being dragged from his car and beaten on Saturday while travelling to Guangdong's strife-torn Taishi village with a journalist working for a British newspaper. The fate of Lu Banglie , deputy to the Zhijiang People's Congress in Hubei province , was last night unknown. Mr Lu had been advising Taishi residents on ways to oust unpopular village chief Chen Jinsheng , who has been accused of corruption, through electoral procedures.

Mr Lu had been travelling to Taishi with journalist Benjamin Joffe-Walt, who writes for The Guardian newspaper, and Joffe-Walt's mainland assistant when they were stopped at a roadblock. According to Jonathan Watts, Beijing correspondent for The Guardian, Joffe-Walt saw about five men in police uniforms and another five in army uniforms at the roadblock. However, the uniformed men soon left the area, leaving 20 to 30 men in civilian dress.

Watts said the men dragged Mr Lu from the car and started beating and kicking him, leaving the journalist and his assistant in the car. The 34-year-old activist was beaten unconscious, but the assault continued for another 10 minutes. "He was extremely badly beaten and we don't know if he is alive or dead. When Benjamin last saw him, he was lying unconscious by the side of the road," Watts said.

He believed the "thugs" were aware of Mr Lu's identity.

Joffe-Walt received "a few slaps" after he was removed from the car and had his mobile phone smashed. He was taken to a government office in Yuwoutou township and later released, Watts said. One internet report said Mr Lu was taken to Datong Hospital in Yuwoutou at about 11pm on Saturday, four hours after the beating. However, the hospital denied Mr Lu had been admitted. His mobile phone had been turned off.

Guo Yan - a lawyer representing activist Yang Maodong , who was detained for helping Taishi villagers in their struggle to remove Mr Chen - said: "Nobody has any news about [Mr Lu]."

Another lawyer representing Mr Yang, Gao Zhisheng , said he believed local authorities were collaborating with gangsters, and the violence was backed by city and even provincial authorities.

A journalist from the South China Morning Post and a French reporter were pushed around when they attempted to enter the village on Friday.

There have been several previous incidents in which reporters' cars were attacked and activists and lawyers detained and harassed when they tried to enter Taishi - making the village almost inaccessible to outsiders. Mr Lu is divorced and living with his 83-year-old mother. He was elected as chief of Baoyuesi village in Hubei after he ousted his predecessor in 2003.



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[boomerang] Posted by Simon at 09:25
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» Peking-Duck links with: Interfering sovereignty
» tdaxp links with: The Geographer’s New Map, Part II: China




October 09, 2005
Inferior racism
Dating a Chinese used to be frowned upon because it was controversial, but dating experts and commentators say locals are now avoiding cross-cultural relationships because they are no longer "fashionable". Spurred by the media frenzy over [an] actress being seen with a Chinese, a prominent media commentator recently devoted his column to the lack of appeal in dating Chinese. In a controversial and often scathing indictment of today's expatriates, the former BBC journalist and regular television pundit Chip Smith said in his column: "In this day and age hanging out with a Chinese is `out'..." Writing in Easyfinder magazine, Smith said the pre-colonial population of rich Chinese sailed off into the sunset with the ex-governor and the Hong Kong Shanghai Banking Corporation after the handover.

"The ones who stayed behind were left to fend for themselves. They had no choice but to move to dorms on Lamma Island or to rent stone houses that people in Sai Kung use to house pigs," his column said.

"Clad in T-shirts, shorts and a pair of flip-flops, nowadays you see them buying beer from 7-Eleven so they can get the free gifts. They even try bargaining with the new mainland immigrant cashier to try to get a 10 per cent discount." Smith warned local girls not to hang out with Chinese in Lan Kwai Fong unless they wanted to have a one-night stand in a small flat with "a guy who was muscular but did not last long in bed".

He concluded: "In this day and age you have to be careful when choosing a gweilo. They no longer have cars or property. You might end up stepping on a penniless landmine. It's too much to sacrifice for a passport."

Asked to reflect on his column, Smith told the Sunday Morning Post it reflected his personal observations and those of his friends. "Hong Kong used to be an international city and English was important. But now we are just like the mainland. We talk about loving the motherland. In today's atmosphere dating a Chinese is like selling out your country."

Today's SCMP, with one exception - I changed the word "westerner" to "Chinese". The headline is even more offensive: Have HK girls stopped looking for Mr White? How does it read now? On with the tripe:
However, Mak Hoi-wah, assistant professor in the Department of Applied Social Studies at City University, believes that the trend has to do less with racism than with the fact that westerners and locals are now much closer. "The difference in social status has decreased and the lines of racial division have softened," he said. "Also westerners today feel there is no need to put up a front. People just don't feel that westerners are anything special anymore."

Anne Chow, owner of dating service Diamond Single Club, said that members used to admire westerners but clients rarely requested to meet westerners now. "We have 5,000 members but there is only one girl who always requests to meet westerners. It is not discrimination but people just don't think it's a talking point any more."

Mr Hon of Match Maker dating service said cultural differences were too much to handle for most people. He said that since it was now so easy to emigrate, westerners were even less appealing because Hong Kong people were no longer willing to put up with differences in return for a passport.

"Most people find cross-cultural relationships difficult. Usually in the beginning they are happy. But once they start to understand each other they realise they cannot accept the differences. There's not much magic left when you watch him cut his toenails," he said. "The clients who ask for westerners mostly want to emigrate to places like North America. But now it is very easy to do it on your own - through business connections or relatives. As a result only about 3 to 4 per cent of our clients now request to meet westerners."

The main question this raises is the one no-one talks about: why is racism considered acceptable when it's done by non-Westerners? Even the SCMP editorial staff miss the point entirely:

It is not so long ago that many Hongkongers faced a future armed with passports issued by the British government. Now the wheel has turned. Few have gone anywhere. The new Hong Kong SAR passports in use now outnumber the others. Expatriates who have stayed and the many thousands who have made their home here since then prize permanent resident status. But while some things may have stayed pretty much the same, others have changed. The end of colonial rule redefined the relationship between locals and westerners. The anachronism of life under a foreign power was swept away in the legal moment of the handover. The social landscape has also changed, apparently - though not as dramatically. As we report today, evidence of changing social attitudes is to be found in one of our more humble living archives - the files of dating agencies and singles clubs. They tell the story more succinctly than any formal research or social commentary. Many clients of one singles club once admired westerners and were keen to meet them.

Now, only one girl out of 5,000 consistently asks to meet westerners. A dating agency says only 3 or 4 per cent of clients ask to meet westerners, and then only with an eye to emigration to places like North America.

This trend cannot have happened overnight. But interest has been excited by the media frenzy over actress Cecilia Cheung Pak-chi's new relationship with a westerner. Whereas once this would have been seen as upwardly mobile though controversial, now it is regarded as "unfashionable".

One Chinese commentator was frank. According to television pundit Chip Tsao, the fact that an expatriate is now less likely to be a well-heeled catch makes dating one harder to justify. He says dating a westerner now is like selling out your country. Dating agencies focus on difficulties in relationships arising from cultural differences and point out that easier emigration makes westerners even less appealing.

It would be good to think that a more positive view of the trend taken by social studies professor Mak Hoi-wah is on the right track. Far from reflecting racism, he thinks it has more to do with the division between westerners and locals having been blurred in the past eight years. Westerners no longer feel the same pressure to put up a social "front" and locals do not see them as special any more.

This can be seen as a natural redressig [sic] of social distinctions of colonialism that have long since ceased to have any place in modern Hong Kong. As such it is to be welcomed as a healthy sign of the growing maturity of a harmonious multiracial society. That is Hong Kong's strength, and one that should be allowed to evolve naturally.

A healthy sign of a mature, mutliracial society is where the colour of the skin of a local starlet's boyfriend isn't newsworthy. Idiocy like this story are the sign of a society still grappling with a massive inferiority complex.



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[boomerang] Posted by Simon at 09:00
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October 08, 2005
China hates spam

Controlling the internet is one thing. Controlling spam is another. But China's going to try:

China has ordered telcos to purge spam SMSes of smut and other "unhealthy" influences, including "superstitious content" like fortune telling. The Ministry of Information Industry made the pronouncement today on its website which declared: "Recently, there has been a lot of dirt hidden in the telecommunication networks. The situation is serious."
If China really wanted to make its 30,000 internet cesnors do good works for mankind, the government could set the censors loose on China's rampant spam industry. Given everything else has failed to stop spam, let's give authoritarianism a go.

While we're at it, does anyone regulate Hong Kong's random mobile calls or message at any hour of the day or night? If not, can we ask China to do it? Please.

On a completely unrelated note, Hong Kong's property developers learn how to stuff ballot boxes, albeit not very well. Here's a hint - at least try to make each form look a little different.

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[boomerang] Posted by Simon at 11:44
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October 07, 2005
Daily linklets 7th October

I will be in a blissfully communication-free locale from Monday for a week. Next week sees a selection of excellent guest bloggers for your edification and reading pleasure. Enjoy.

  • Starting today I will try to mark with a * any blog likely to be blocked in China.

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[boomerang] Posted by Simon at 18:34
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» Publius Pundit links with: CHINA PROPERTY PROTEST




CCB, CNOOC and the Paris of Asia

From David Webb:

China Construction Bank, known by local jokers as "China Corruption Bank" in honour of its jailed former Chairman Wang Xuebing (who's offences were actually committed at Bank of China), is heading for listing. If they get this one away, then we shall know that the market has truly reached a top. We haven't seen such excitement since the property and red chip market peaked simultaneously in 1997.

Sure, they've taken the bad loans out of the bank, but what about the bad lenders? Do you really believe that thousands of semi-autonomous branches have suddenly discovered the art of credit analysis and that the local communist party cadres and bribe-waving wannabe tycoons will leave them alone to make good lending decisions? The unseemly scramble of foreign banks to become minority shareholders in the mainland "big-four" is puzzling given that the foreigners have been promised full market access from 2007 under China's WTO commitments. As any investor in HK will tell you, being a minority shareholder doesn't buy you much say in how a firm is run.

And without wanting to rub it in, Mr. Webb has an "I told you so" over CNOOC:
Our allegation of Apr-04 against CNOOC Ltd has been proven right. The Listing Committee of the Stock Exchange today issued a public censure of CNOOC for failing to seek shareholders' approval before lending money to its parent's finance company. We look back at the case, and call on the Exchange and SFC to increase transparency over their secret, closed-door disciplinary proceedings.
Remember Hong Kong's claim to being the gateway to China through offering transparent markets, strict regulations and rule of law?

Updated 17:14

After months of silence, Mr. Webb lets loose two missives in as many days. Today he looks at intervention in Hong Kong's labour market:

We examine HK legislators' calls for a statutory minimum wage and maximum working hours, and the Government's move to put public bodies on this path resulting from a pact between Donald Tsang and the unions during his nomination campaign. He was making promises with your money. We also look at the proposed "1+1" labour importation scheme - a sop to politically-connected textile families, the job-for-life labour contracts of the civil service, statutory Severance and Long Service Payments, and the Protection of Wages on Insolvency Fund.
Minimum wages and working hour limits have worked out well for France (unemployment rate 9.9%) and will help Hong Kong's (unemployment rate 5.7%) flexible labour markets go rigid.

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[boomerang] Posted by Simon at 17:07
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Hong Kong blogger: Bubbly Joseph Yam

The Hong Kong Monetary Authority's Joseph Yam today's receives a prestigious award: I am declaring his Viewpoint series is the world's first central bank blog (it just needs some RSS feeds). This week's edition is on financial stability and the property bubble, a self-congratulatory romp on how Hong Kong "survived" the bursting of its property bubble from 1998-2003. Mr. Yam puts it down to six factors:

1. Low interest rates - he concedes Hong Kong was "lucky" interest rates were falling during the period. For that he can thank Alan Greenspan.
2. 70% loan-to-value ratio - thanks to the HKMA's oversight, banks had low-ish LVRs, slowing the decline in negative equity loans. But when prices fall by 60%, that's not going to help you. And in the current market you have to be a chump not to be able to get LVRs of 90%+, even via vendor financing.
3. Two-income households - thanks to Hong Kong's army of domestic helpers, both partners in a family can work, which cuts the odds of unemployment hurting a family because at least one still has a job. Of course two people usually have to work because the city is so expensive, especially property, and those two people endured 6 years of stagnant wages offset by deflation. So thank your helper today. She saved Hong Kong.
4. High savings rate - people are thrifty, so they can afford more debt. It's a crazy world.
5. Highly capitalised banks - you say conservatively run, I say lazy balance sheet. While people scraped together their last few cents to repay their mortgages, banks didn't need to draw down on their capital reserves. It simply proves the adage that people would rather go hungry than default on their home loan.
6. The Hong Kong Mortgage Corporation - the USA has been actively discussing their versions of the HKMC (Fannie Mae and Freddie Mac are the two biggest), with their implicit government guarantees meaning the US taxpayer effectively subsides mortgage rates for home owners at the expense of non-home owners. Mr. Yam says: we established the Hong Kong Mortgage Corporation to which banks could sell their mortgages if they wished to reduce their exposure to the residential housing market to a comfortable level. This implies the HKMC is simply the mortgage dustbin for Hong Kong banks. If the market wanted a way to dispose of mortgages through securitisation, it would have created it.

But Mr. Yam finishes with a prescient warning:

falling housing prices have a debilitating effect on consumption. The feeling of your property going deeper and deeper into negative equity is painful, particularly when your home is your only asset. Those who have been financing consumption by borrowing against rising housing prices are particularly vulnerable. Thankfully the community of Hong Kong is quite conservative in this respect.
As opposed to some other communities we could name. Thankfully America has no real estate bubble, according to dis-interested and independent realtors, and Hong Kong has no bubble at all...just a slump.

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[boomerang] Posted by Simon at 12:23
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Taiwan's monetary experiment

The rapprochement continues. Taiwan has begun a trial of limited convertibility of New Taiwan Dollars into Renminbi. And people like it, not least because it helps them avoid the black market.

Taiwan-China currency exchange services that began Monday on Kinmen and Matsu islands on a trial basis have gained warm public response and the government will further study the issue to better service the people, Taiwan Premier Frank Hsieh said Wednesday...The government will move ahead with the service and gauge the possibility of establishing a currency settlement system between the new Taiwan dollar and the renminbi, the premier said...

Taiwan passengers highly praised the service, saying that the measure helps them save a lot of trouble in exchanging renminbi and provides them with a legal channel to get rid of fake Chinese currency despite the fact that the exchange rate is a little higher on Kinmen and Matsu than on Chinese black markets. In the past, Taiwan visitors had to approach local tourist agencies on Kinmen and Matsu or black markets in China to exchange new Taiwan dollars to renminbi -- a practice that made many of them suffer monetary losses when taking in fake notes.

Taiwan is one of the biggest investors in the Mainland. Full scale convertibility is an inevitability. More interestingly this is just the latest small step in the warming relations between the Communists and the DPP. Clearly being enemies isn't what it used to be.

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[boomerang] Posted by Simon at 12:04
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Things not to do when touring China

Number 1: Don't hand out the Falun Gong/Epoch Times' Nine Commentaries on the streets of Shanghai.

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[boomerang] Posted by Simon at 11:54
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October 06, 2005
Daily linklets 6th October

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[boomerang] Posted by Simon at 12:53
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Sunny side down

It's not easy being optimistic about China's future.

First the crushing fallout over Taishi continues, says the SCMP:

Guangdong police have formally arrested a rights activist after holding him in custody for three weeks for advising Taishi villagers during their fight to oust the village chief, according to a lawyer who visited him recently...Mr Yang was detained for "disturbing social stability by mass gathering" on September 13 - a day after more than 1,000 armed police stormed the Taishi government office and took away dozens of villagers. The villagers were demanding the removal of village head Chen Jinshen after alleging that he had misused village funds.

Villagers in Taishi have also lost their freedom since the riot on September 12. They are not allowed to talk with outsiders and the number of villagers still detained by the police remains unclear.

Meanwhile a social call by a professor and a lawyer on a noted activist finished up with knuckle sandwiches. Again the SCMP:
A Beijing law lecturer and a lawyer paying a social visit to a blind activist under house arrest in Shandong were escorted back to the capital after being beaten by thugs on Tuesday and interrogated until early yesterday. But Xu Zhiyong , 32, from the Beijing University of Posts and Telecommunications, and Li Fangping , 30, a lawyer in a private practice, said they would not be deterred by the attack, which came as they attempted to visit Chen Guangcheng , an opponent of violent, government-backed birth-control measures in Linyi city.

"It was a government-planned action, but the barbarous act will not intimidate us," Mr Xu said from Beijing yesterday...On Tuesday morning, the pair - along with dozens of villagers - arrived outside Mr Chen's home but were denied access. Mr Chen hurried from his house and suffered injuries to his mouth and legs when he clashed with guards. He met the pair for a minute before being pushed back into his house.

Mr Xu and Mr Li were invited to lunch on Tuesday by county officials. They told the officials Mr Chen would "talk less" about local abuses if he was released, but they refused to listen. A few hours later, when the pair were on the way back to Mr Chen's home, they were attacked by up to 30 thugs.

The men tried to report the assault to nearby policemen, who turned their backs on them. Mr Xu and Mr Li were kicked and pushed into a gutter before police arrived and took them - but not the attackers - to a police station, where they were accused of "attacking people". They were interrogated until 3am and escorted back to Beijing by three county policemen yesterday afternoon, after they again tried to visit Mr Chen in the morning.

Mr Chen, who has helped several villagers fighting forced abortion and sterilisation take their cases to court, was "kidnapped" by Shandong police in Beijing last month and put under house arrest.

Linyi city made international headlines in July when Mr Chen helped Washington Post journalists report on the local birth-control programme. Last month, National Population and Family Planning Commission spokesman Yu Xuejun told Xinhua it would investigate the "reported illegal family planning practices" in Shandong.

But the final sucker punch is the most subtle. I am a great believer that consistent, open and honest rule of law is a key to freedom. Rule of law has three important aspects: legislation (by a parliament with elected representatives), enforcement (by police that are not corrupt and closely monitored) and the justice system (again sans corruption, with timely and fair decisions and clear checks and balances). However China's court system is buckling under the strain of an explosion in lawsuits, increased workloads and a falling number of lowly paid judges. We can prattle on about freedom and democracy all we like, but the details matter as much as the broad brushstrokes. The SCMP on China's rickety court system:

Beijing's Chaoyang District Court is one of the busiest lower-level courts in the capital. Last year it took on a record 46,000 lawsuits, but that record looks certain to be overtaken this year, with the court having accepted about 31,000 cases in the first half of the year alone.

The court has 177 judges who each preside over an average of seven hearings a day, according to the People's Court Daily, which quoted one of the court's judges as saying that she still had more than 100 cases to assess and her court roster was fully booked for the coming month.

Chaoyang judges routinely work overtime and their caseload is climbing year by year, according to Mao Li , director of the court's research office.

A People's Court Daily reporter says the load on the legal system is obvious inside the court. "You can immediately feel the tense atmosphere when you step inside the court building," the reporter said. "There are always long queues in the registration hall. Parties in the suits have to wait outside the courtrooms for a long time for their turn because each courtroom has about five different cases every day on average."

Further south, in Guangzhou, the situation has become so acute that the city has had to "borrow" judges from other areas to cope with the "crazy" caseload, the Guangzhou Daily reports. In the past decade and a half, the number of lawsuits accepted by the city's system has risen from about 23,400 in 1990 to more than 160,000 last year.

But the number of judges has declined slightly over the past few years. "The mad increase in lawsuit cases and decline in the number of judges has led to a severe deficiency in judicial power," a Guangzhou judge said. "Working overtime is a common practice for Guangzhou judges."

In the relatively prosperous city of Shenzhen, the intermediate court has sought to counter the increase in cases by implementing a collective overtime plan for its arbitrators since 2000, a move that could be defined as illegal under national law.

From last month, city judges have had to work overtime every Tuesday and Thursday night, and should work every Saturday. According to the "Shenzhen 2004 Court Work Report", the workload of Shenzhen judges has doubled in the past five years.

The report also said 75 judges had asked to quit during that period because of the "extraordinary work pressure". At the national level, the number of cases accepted has risen steadily every year while the country's judicial ranks have thinned. Mainland courts accepted 7.87 million lawsuits last year, compared with 5.68 million in 2003 and 5.35 million in 2000.

Supreme People's Court president Xiao Yang told a meeting of the National People's Congress Standing Committee that the number of judges had declined by 13 per cent between 2000 and last year.

The state does not release data on the number of judges, but there were thought to be about 280,000 in early 2000.

Wang Xuetang , a judge and researcher from Shandong , has been studying China's court system for more than 10 years and says economic development and social change have been the critical factors behind the shortage. Judge Wang said there had been an explosion in the number of disputes because respect for social institutions was not well established in Chinese society. He said members of the public were also more aware of their legal rights - and therefore more willing to file cases - and judges were now expected to meet higher standard.

In the past, China's judges were mainly either retired army personnel or court cadres who had worked their way up to judicial positions. But for the past three years, the mainland has had unified judicial exams which all judges, prosecutors and lawyers have to pass in order to practice.

"The unified examination became a barrier for judge recruitment in underdeveloped areas where the quality of judicial personnel is relatively low," Judge Wang said, while admitting the exams were a significant step forward in terms of national reform.

For example, about 340 judicial staff from Qinghai sat the exams in 2002 when the system was implemented, but only eight passed. Poor pay had also made work on the bench less attractive. Judge Wang said his annual income was only about 30,000 yuan, which is about the same as an ordinary government worker and much less than a lawyer. "Judges should be better paid because they engage in creative work and face heavy workloads and great pressure," he said.

But Peking University Law School professor He Weifang disputed the claims that China did not have enough judges, saying the "shortage" was an illusion created by defects in the judicial system. "The proportion of judges in terms of population numbers in China is much higher than in many western countries," Professor He said.

He said one of the main problems was that many judges were doing work that should be outside their range of responsibilities. "Many basic-level courts are required by the local government to oversee investment invitations, family planning, tax collection and so on," Professor He said. Professor He said an ambiguous division of labour inside the courts forced judges to waste time on paperwork that would be done by assistants in other countries.

"Only about two-thirds of existing judges are really doing judges' work," he said. "The judges also have to spend much energy and time balancing different interest groups who can exert pressure on justice. It is useless to increase the number of judges in this case."

Professor He said corruption had dragged down the reputation of the country's judges and turned people away from the profession. "Prestige and independence are more important than salary for a judge," he said, adding that it would be a more popular career choice if judges' authority and reputation could be guaranteed.



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[boomerang] Posted by Simon at 10:17
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October 05, 2005
Calling for guest bloggers

Through a monumental co-incidence, both my excellent co-blogger Dave and I will be unable to post to the blog from this coming Monday for the next week. If you are interested in taking on a guest blogging slot from next Monday until next Sunday, please send me an email or leave a comment here. You've got until noon Friday Hong Kong time.

The last time I tried this it was extremely successful, and if any of the previous guest bloggers would like to take up the reigns, let me know.

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[boomerang] Posted by Simon at 18:52
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» Simon World links with: Asian Babes by Blog




The New York Times stole from me

One incredible part of the Kissel case post is the varied comments received from those who are intimately involved with it. While there have been disagreements and accusations, for the most part the discourse has been civilised. Having an open forum for people to express their feelings and comment on the case has added a new dimension to the coverage of the case and it demonstrates the potential of blogs as a new medium.

During the case I made a simple request to the mainstream media who were making use of the site, especially in chasing interviews from commenters on the post. Firstly on August 12th I said the following:

Now would be a good time for me to make a simple request: if members of the media use this archive and/or site to help in their research of the case, I would appreciate an email letting me know of any resulting publication or article.
I followed this up on September 4th with the following:
I repeat a request that any mainstream media account that relies on comments or contacts found via this site please make a reference to this site as the location where that source was found.
It was a simple request for attribution. I was and remain happy for mainstream media to use the site as a reference point on the case. All I ask is the simple courtesy of recognising where these contacts were gathered from, just as the media in question would expect proper attribution and acknowledgement when I or others commented on their articles. I am please to say that some newspapers followed my request, including The Standard. The SCMP obviously obtained interviews and material via this site without attribution, but I let that slide given I was cutting-and-pasting their inaccessable articles into the archive - effectively I called us even.

Just today a friend and reader mentioned that this site was obliquely referenced the the New York Times in an article on September 24th. The full article appears below the jump, but here is the key part:

Lawyers and family members say they believe she is the author of an item posted on the Web earlier this month by an author identified only as H who described seeing to it that her three young charges had the same fun-filled year as her two children: a year packed with sleepovers with friends, music lessons and weekend ski trips. Although it is ''far from a perfect situation,'' the writer wrote, ''they are doing well, all things considered.''

''They wake up to a full breakfast (cooked not by a maid), lunches for five are packed in the morning and we sit down to a family dinner almost every night,'' the writer continued.

The elder niece, according to the posting, went to sleepaway camp this summer, as has been her custom, and the younger two children ''swam in fresh mountain springs, jumped off rocks into beautiful lakes, learned how to knit (sort of), made macramé necklaces and went blazing down the Alpine Slide.''

The NYT article is referring to this September 11th comment by "H". Clearly the NYT reporter, Alison Leigh Cowan, googled the case, came across my post and read through the comments. It is impossible that she did not see the two seperate requests for notifcation and attribution.

I will be sending have sent (see bottom of this post) an email to the NYT editor asking for attribution as was clearly stated. I will be publishing all the correspondence here. I am not asking for money or anything other than recognition. Let's see if it's too much to ask of the New York Times.

Update 17:08: Further to this, all work on this site is protected by a Creative Commons licence: attribution-non commercial-share alike 1.0. The NYT has proken the attribution aspect (You must attribute the work in the manner specified by the author or licensor); they've breached noncommercial (You may not use this work for commercial purposes.). Finally under share alike (If you alter, transform, or build upon this work, you may distribute the resulting work only under a license identical to this one.) we are theoretically free to now at least use this article and perhaps the entire NYT under a similar licence.

So much for Times Select.

For 3 Little Millionaires, a Series of Painful Events By ALISON LEIGH COWAN (NYT) 1384 words Published: September 24, 2005

Even in Greenwich, the $15 million to $18 million fortune they stand to inherit stands out as serious money. And yet few would trade places with them. They are 11-, 8- and 5-year-old siblings who have endured nearly as much tragedy in their short lives as the waifs of the Lemony Snicket stories who lurch from crisis to crisis.

Last month, their mother was convicted of killing their father in 2003 at their luxurious Hong Kong home, after he learned of her affair with a television repairman. Their maternal grandfather moved them to Illinois to live with him but changed his mind after two weeks.

Then the rich uncle who gave them refuge at his picture-perfect home in Greenwich was charged with orchestrating a fraud that is punishable by years in prison and could leave him penniless. His wife, the person primarily in charge of taking care of the children in the last year and a half, is seeking a divorce. She has said she would like to keep custody, but must battle creditors to preserve any semblance of the life she has led.

The question, then, of who will raise the three Kissel children, and, not coincidentally, what happens to the money their father left behind, will now be left to the American judicial system. Stamford Superior Court has begun revisiting the issue of temporary custody, and Surrogate's Court in Manhattan, which probated their father's will, is scheduled to take up the larger question of guardianship next Friday.

In the meantime, the squabbling continues, extending a spectacle that began overseas in late 2003 when Nancy Ann Kissel was accused of giving her husband, Robert P. Kissel, a Merrill Lynch executive, a sedative-laced milkshake before clubbing him to death. It spread here with this summer's news that Robert's brother, Andrew M. Kissel, had criminal and marital problems of his own.

Squaring off over custody and guardianship of the children are Andrew's estranged wife, Hayley Wolff Kissel, a former stock analyst on Wall Street, and his sister, Jane Kissel Clayton of Mercer Island, Wash.

Ms. Clayton has criticized the children's current living arrangement as ''bleak and problematic'' and accused her sister-in-law in court of using the children as pawns to solve her own deepening financial woes.

Court records show that the Kissels of Greenwich received $170,000 from Robert P. Kissel's estate last year and are operating under an agreement in which the estate allots $8,000 a month toward the children's food, clothing, travel, sports, gifts and baby sitter, an amount that can rise or fall on the basis of actual expenses. Major outlays like tuition and medical bills are not expected to come from that but are paid directly by the estate.

''Hayley has represented to me that her and Andrew's legal problems have left her in a desperate financial situation and that she intends to fight for custody of Robbie's children -- even though she admits that it is not in their best interests to remain with her -- in order to benefit from their considerable assets,'' Ms. Clayton wrote in an affidavit.

Though Hayley Kissel petitioned for divorce earlier this year and is now embroiled in civil litigation stemming from Andrew's ill-fated deals, she seems prepared to do battle over the three children, Elaine, June and Reis, as well.
She notified Stamford Superior Court last month that she was interested in remaining responsible for the children despite her own changed circumstances. Without disclosing much detail about the tumult in her life, she wrote, ''I take my role as custodian very seriously, care deeply for the welfare of the Kissel children and am happy to continue as temporary custodian.''

Lawyers and family members say they believe she is the author of an item posted on the Web earlier this month by an author identified only as H who described seeing to it that her three young charges had the same fun-filled year as her two children: a year packed with sleepovers with friends, music lessons and weekend ski trips. Although it is ''far from a perfect situation,'' the writer wrote, ''they are doing well, all things considered.''

''They wake up to a full breakfast (cooked not by a maid), lunches for five are packed in the morning and we sit down to a family dinner almost every night,'' the writer continued.

The elder niece, according to the posting, went to sleepaway camp this summer, as has been her custom, and the younger two children ''swam in fresh mountain springs, jumped off rocks into beautiful lakes, learned how to knit (sort of), made macramé necklaces and went blazing down the Alpine Slide.''
Asked about the latest developments, Hayley Kissel's lawyer, Joseph W. Martini, said neither he nor his client would have any further comment.

In an interview, William J. Kissel, the children's paternal grandfather, said that he found the Web posting inappropriate and that he supported his daughter's application for custody and guardianship, citing many of the assertions in Jane Clayton's filings that question Hayley Kissel's motives. ''Better now than later,'' he said.

''Andrew is in deep trouble,'' he said, ''and it wouldn't be appropriate to have the children in a house without a mother and a father, where the wife needs the children to support her lifestyle.''

In her court filings, Ms. Clayton has said that trouble arose in Andrew and Hayley's marriage in July 2004, when Hayley Kissel learned that her husband was having an affair. Ms. Clayton recounted conversations from that period that left her ''deeply worried,'' in which her sister-in-law told her that Andrew's business was a ''Ponzi scheme'' and that one of the reasons they moved to Connecticut was that he ''stole money from their New York City condo'' when they lived in Manhattan.

Though the couple later reconciled, Ms. Clayton stated that she remained concerned about the children's welfare. Those concerns, she wrote, flared anew in the winter, when her sister-in-law resolved to get a divorce and left town without waiting for her elder niece to return from a school trip. Ultimately, a family friend picked the girl up, according to Ms. Clayton.

Ms. Clayton said in court filings that her sister-in-law made it clear at that time she did not need the ''extra stress'' of the additional children, and the two agreed that the children would remain in Connecticut through the school year, and then join Ms. Clayton and her husband, Richard, an executive at Microsoft.
Pressing personal problems are now causing her sister-in-law to renege, Ms. Clayton said. ''Hayley told me that Andrew had leveraged everything, including their house in Vermont, and that he had left her with nothing,'' she wrote.
Citing a conversation she said they had on July 7, Ms. Clayton quoted her sister-in-law as saying: ''I am going to do what is best for myself. If I keep the children, it may not be the best thing for them, but at least I won't be out on the street. I have nothing left.''

Ms. Clayton's lawyer, Randy M. Mastro of Gibson Dunn & Crutcher, said in an interview that his client's recollections were based on contemporaneous notes she took of conversations she had with her sister-in-law.

An item in the probate court's files suggests one reason it may be hard to leave the children where they are: the possibility that the estate may have to join a lawsuit against Andrew M. Kissel.

Back in June, Ms. Clayton, a co-executor of her brother's estate, testified during the murder trial that the estate was worth $18 million. That estimate has now been lowered to $15.5 million. Some of that gap can be attributed to investments that Robert Kissel had made in apartment buildings in New Jersey, which Andrew Kissel is now accused of having secretly sold out from under his own partners. That money may now be hard to recover, according to Mr. Mastro.


My letter to the NYT public editor

To whom it may concern:

I write to you regarding an article that appeared in the NYT on September 24th, 2005, by Alison Leigh Cowan, under the headline "For 3 Little Millionaires, a Series of Painful Events". The said article relates to the custody battle for 3 children left parentless after their mother was found guilty of murdering their father in Hong Kong.

I run a Hong Kong weblog called Simon World (http://simonworld.mu.nu). I have been following the murder case throughout its trial and my site has become the number 1 rank in Google for searches for Nancy Kissel, the convicted murderer. As such my site has also become an open forum on the case, with many people intimately related or involved in the case commenting on my site.

During the case I made a simple request to the mainstream media who were making use of the site, especially in chasing interviews from commenters on the post. Firstly on August 12th (http://simonworld.mu.nu/archives/054193.php#397346) I said the following:

"Now would be a good time for me to make a simple request: if members of the media use this archive and/or site to help in their research of the case, I would appreciate an email letting me know of any resulting publication or article."

I followed this up on September 4th (http://simonworld.mu.nu/archives/054193.php#426176) with the following:

"I repeat a request that any mainstream media account that relies on comments or contacts found via this site please make a reference to this site as the location where that source was found."

It was a simple request for attribution. I was and remain happy for mainstream media to use the site as a reference point on the case. All I ask is the simple courtesy of recognising where these contacts were gathered from, just as the media in question would expect proper attribution and acknowledgement when I or others commented on their articles. Several newspapers have conducted interviews or gathered leads for stories via my site and have attributed as requested. However I received no notification from the NYT or your reporter of your use of my site in a story.

Ms. Cowan's story clearly references my site in the following excerpt:

"Lawyers and family members say they believe she is the author of an item posted on the Web earlier this month by an author identified only as H who described seeing to it that her three young charges had the same fun-filled year as her two children: a year packed with sleepovers with friends, music lessons and weekend ski trips. Although it is ''far from a perfect situation,'' the writer wrote, ''they are doing well, all things considered.''

''They wake up to a full breakfast (cooked not by a maid), lunches for five are packed in the morning and we sit down to a family dinner almost every night,'' the writer continued.

The elder niece, according to the posting, went to sleepaway camp this summer, as has been her custom, and the younger two children ''swam in fresh mountain springs, jumped off rocks into beautiful lakes, learned how to knit (sort of), made macramé necklaces and went blazing down the Alpine Slide."

The article is referring to a September 11th comment by "H" (http://simonworld.mu.nu/archives/054193.php#434080).

I would ask that your newspaper respect the clearly stated request for attribution. I imagine your paper zealously enforces attribution for those articles used and referenced by others. I am asking your paper does the same for the sources it uses in its articles.

It is my policy that all correspondence is publishable on my site.

If you are not the appropriate area for this correspondence can you please pass it to the relevant parties within the NYT.

Best,

Simon
http://simonworld.mu.nu



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[boomerang] Posted by Simon at 14:50
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Daily linklets 5th October

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[boomerang] Posted by Simon at 12:57
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Get out of the kitchen

These stories, all from today, are related. You join the dots.

1. The SCMP:

The number of hours with reduced visibility at Hong Kong International Airport hit 237 last month, the highest figure for September since 1997.

2. The SCMP:

The number of people who watched the $7.7 million video showing highlights of the controversial Harbour Fest will never be known, InvestHK said yesterday. Harbour Fest organisers InvestHK and the American Chamber of Commerce had promised that the 45-minute video - aimed at promoting Hong Kong after the Sars outbreak in 2003 - could reach 500 million households worldwide.

But the government's investment promotion arm now says the final viewing figure will not be available because many overseas stations did not have ratings...since February last year, the report said, the video had been shown on two MTV networks, the international and Indian channels of Star World, on TVB Pearl and Phoenix TV, which is shown on the mainland, Hong Kong, Macau, Singapore, Malaysia, Indonesia, Brunei and the Philippines.

The report says Phoenix alone may have accounted for up to 300,000 viewers. (Ed. - that's still a little short of 500 million.)

InvestHK said there were no further plans to broadcast the video because of TV rights restrictions and the long time lapse since the music festival was held.

Harbour Fest was held in 2003. An official inquiry into the role of InvestHK director-general Mike Rowse in the public-relations fiasco is continuing.

3. The Standard: five prosecuted in swoop on "Rat Alley" restaurants. Lan Kwai Fong's best strip of cheap restaurants, vibrant with al fresco eating, chaotic waiters and that Indian guy with the Elvis sideburns. Not any more.

4. The SCMP:

The Asia-Pacific region boasts some of the world's most liveable cities but also a number of the most wretched capitals on Earth, according to survey results released yesterday...Tokyo was ranked 16th and Auckland 20th along with Osaka, Kobe and Wellington. Hong Kong was ranked 41st, while Seoul and Singapore tied for 54th place.
What knocked Hong Kong's score? The survey says...
...cities in Japan, New Zealand, Hong Kong, South Korea, Singapore and Taiwan all offer a good standard of living, with a humid climate bringing scores down slightly.
It's all about the humidity.

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[boomerang] Posted by Simon at 09:48
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October 04, 2005
A heartbreaking decision of staggering genius

This is a tale of a vending machine, Kate Moss and irrationality.

Important update at the end of this post

We have a vending machine at work. It has proven extremely popular with the staff, especially as the drinks are provided gratis. This has provided material for an interesting experiment. Now that price has been removed from the demand equation, it can be safely assumed that other factors will come into play. Taste is one, packaging another, familiarity (i.e. advertising and experience) yet another. The machine has two rows of 8 selections. The selections were:

(Top): Coke x2, Lemon Diet Coke (why?), Diet Coke x3, Aloe Vera Tea (again, why?), Lemon tea.
(Bottom): Bonactive (I think it's water in a can), Soda Water, Soda Water, Bonactive, Orange Juice and three variations of iced coffee.

Bear with me here. Inevitably the first drinks to run out are Coke and regular Diet Coke (there's always lemon Diet Coke left, even when everything else has run out, as you would expect). Naturally you would expect the bottler to realise that Coke and Diet Coke are the most popular drinks and some of the lesser variations should be dropped to make more space for these drinks.

You would be wrong.

In a decision that can only be described as incredible, the machine has had its two lines of Diet Coke cut (insert Kate Moss joke here) and replaced with Bonactive and Soda water. Why? It makes absolutely no sense at all.

Yes, I think I work in the Twilight Zone.

Update (10/5 @ 17:08)

The machine has been refilled and restored to its natural order, with 3 lines of Diet Coke back in place.

Obviously either someone complained, someone came to their senses or the evil conspiracy unravelled thanks to this blog post.

I like to think it was the latter.



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[boomerang] Posted by Simon at 16:57
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Daily linklets 4th October

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[boomerang] Posted by Simon at 16:02
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Doing business in Dandong

Tim Clissold's Mr China is an entertaining read about the perils of doing business in China. Today's Sydney Morning Herald follows a similar case, of Alex Liu and the Dandong International Hotel (sub req'd, full article below the jump). The story has everything: corruption, kleptocracy, ineffective courts, shifty dealings, useless and mythical guanxi and more besides. A rollicking good read:

Only a few months ago the $US7.8 million ($10.25 million) that Alex Liu and a group of ex-Hong Kong investors, including two Australians, had put into a high-rise hotel here looked like dead money, an expensive case study in what can go wrong with foreign investment in China.

Their local government partner had loaded the hotel with extraneous debts, seized the official seals and expelled the managers, put the enterprise into receivership, then handed it to cronies who milked it of cash.

This week the investment was back from the dead. The leading crony was under arrest, city officials were running scared and grovelling, and Alex Liu was back walking the lobby, directing staff in a physical and financial clean-up to salvage the business.

Still, it's a hair-raising story.

Liu, a 60-year-old building engineer with a well-regarded firm in Hong Kong and a family home in Toronto, Canada, and his partners are pillars of respectability.

But they had to act as street activists to gain attention in China and keep protesting to get judicial, party and state officials to override powerful and corrupt local vested interests.

Advertisement
Advertisement"Over the last three years we carried out demonstrations 13 times," says Liu, who unfurled protest banners outside Communist Party offices next to Beijing's Tiananmen Square and the Liaoning provincial equivalents in the north-eastern city Shenyang, under which Dandong falls.

Fellow investor Patrick Choi, an environmental engineer with the NSW State Government, and his brother Nelson would take leave and fly from Sydney to join Liu on the streets.

The demos would be timed for the most embarrassing moments, like the annual meeting of China's National People's Congress, when authorities normally clear the capital of known petitioners and other usual suspects.

Chinese police would quickly intervene, fold up their banners and hustle them off the streets. But each time the partners would get a new meeting with high-up officials to put their case.

The partners agree they were naive in 1991 when they first heard about a business opportunity in Dandong, the city that is the main Chinese transit point into North Korea which it faces across the narrow estuary of the Yalu River.

Dandong's city government had started building the city's first modern hotel but had run out of money with just the 23-story shell completed. Alex Liu had the expertise and, with his friends, the cash to complete the project.

It seemed a safe investment. Their joint venture partner was a branch of the Chinese government. They were Chinese, able to speak and read the language, and more likely to forge the unspoken understandings of "guangxi", or connections said to underpin business deals here, better than written agreements. Their foreign passports gave them tax and other privileges.

The hotel duly opened in mid-1994, ready to cash in on a prospective boom when North Korea's isolationist regime eventually succumbed to globalisation - something the world is still waiting for, though a trickle of barter trade across Dandong's steel girder bridge is steadily picking up.

But in the meantime, the investors found their local partners practising a version of capitalism they must have learnt from the 19th century robber barons.

The manager provided by the city-owned Dandong Tourist Corp got the hotel to take over several large debts incurred by the local government before it entered the joint venture.

By the time Liu and partners caught up with this, banks were foreclosing on interest-swollen debt. In April 2002 the Dandong People's Intermediate Court put the hotel into receivership, under a local company close to city officials called Fu Wah Management Co. Deprived of the official seals, Liu and partners were denied all access to the hotel and its accounts.

Little or no help came from the Australian, Canadian and US embassies. The investment had been made through Liu's Hong Kong firm, Fam Engineering, and was therefore no concern of theirs. For local officials, the investors were not quite foreign, and not Chinese either, and thus easy game.

So the long campaign of political embarrassment started and, finally in May this year came a breakthrough. The Liaoning provincial high court formed a special panel which ordered the lower court's receivership order revoked and the hotel handed back to its board of directors.

But court orders are one thing in China, enforcement another.

Alex Liu, who had been chairman on the board of directors in April 2002 and still was according to all legal forms, drove down immediately to Dandong along with an enforcement officer from the provincial court to receive the hotel.

"Instead we were met by three new faces, from a new company called Nine Continent Tourism Co, who claimed they were the board of directors appointed by the local partner," Liu recalls.

Once again, all the partners flew into China to mount further picketing attempts outside the offices of Liaoning's top communists. But there it seemed to rest, a not untypical case of local power cliques resisting directions from above.

But somehow - Liaoning officials this week refused to discuss the mechanics - the challenge was taken up. In recent weeks Liu Tinyao, a key figure in the Fu Wah Management Co, was taken in by the Liaoning anti-corruption agency for questioning.

As well as being asked about 5 million yuan ($811,000) missing from the hotel accounts, he is also said to be linked to some 10 million yuan embezzled from the Liaoning Securities Co, a provincial investment bank that recently had to be rescued with a 500 million yuan cash infusion from the central government.

Resistance in Dandong collapsed, with several high-ranking officials said to be nervous about their futures. Alex Liu walked back into the hotel on September 20. "There wasn't a single fen [penny] left in the till," he said - and an accrued debt of 72 million yuan.

Most of the podium and lower floors have been taken as collateral by banks and an asset management company, so the hotel has ownership of only the top 10 floors, including its revolving restaurant which allows diners to dine while gazing out over starving North Korea, and pays rent on the rest.

"It's very complicated," Liu says.



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[boomerang] Posted by Simon at 13:59
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Yu Maochun on Taiwan

Dr. Yu Maochun is professor of history at the United States Naval Academy in Annapolis, Maryland. He just gave a talk titled "Will China Attack Taiwan? Calculating the risk for war."

Luckily Mad Minerva went along and took copious notes, which you'll find at the above link. As a teaser, here are the six factors to consider:

1. Historical Pattern: China’s historical propensity to use force to solve geopolitical problems.
2. China’s New Security Agenda
3. High-Level Power Struggles Within Chinese Government Elite
4. Cross-Strait Economic Engagement
5. Taiwanese Democracy
6. The United States
There are some great snippets within the notes themselves, and MM has a constructive conclusion on the talk. Well worth a read.

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[boomerang] Posted by Simon at 13:16
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Mao or Mao

Stumbling around Xinhua, I came across a forum titled Mao Zedong, a forever warm memory. The page holds 15 comments, all in praise of the Great Helmsman. One that stands out:

jjg: My father and grandfather were wronged and persecuted for 5 and 20 years, respectively. But I still think that Mao's merits outweigh his demerits….We can never forget that he helped lay the foundation for the growth of the People’s Republic of China.
And another links past with present:
Dhgsk: Mao Zedong is remembered not for the mistakes he made, but for the work style of "serving the people wholeheartedly"pursued by the Chinese Communist Party under his leadership….People have longed for a government that does its utmost to improve their well-beings. Fortunately, the current central leadership gives us that hope.
By way of contrast, there is Mao: The Untold Story by Jung Chang and Jon Halliday. The wikipedia entry on the Chang/Halliday book summarises its findings:

According to the book "Mao Tse-tung, who for decades held absolute power over the lives of one-quarter of the world's population, was responsible for well over 70 million deaths in peacetime, more than any other twentieth century leader" and claimed that he was willing for half of China to die to achieve military-nuclear superpowerdom.

Chang and Halliday argue that despite being born into a peasant family, Mao had little concern for the welfare of the Chinese peasantry. They hold Mao responsible for the famine resulting from the Great Leap Forward and claim that he exacerbated the famine by allowing the export of grain to continue even when it became clear that China did not have sufficient grain to feed its population. They also claim that Mao had many political opponents arrested and murdered, including some of his personal friends, and argue that he was a more tyrannical leader than had previously been thought.

The entry also has links to various reviews of the book and some of the disputed points in the book.

I imagine this book won't be available in China, nor will it get it's own Xinhua page.

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[boomerang] Posted by Simon at 11:32
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October 03, 2005
Woof Woof, You're Dead

Anyone care to hazard a guess as to the cost of obtaining a dog license in Guangzhou? It's 700. Renminbi? No. British Pounds. That's over RMB10,000. And then you pay another 400 pounds (RMB 5,727) a year for the privilege.

This article in the Independent from its Beijing correspondent David Eimer talks about how the Guangzhou authorities are rounding up unlicensed dogs and butchering them on the streets, sometimes in front of their owners, who cannot afford to pay for this bourgeois luxury.

Desperate owners afraid of a summary execution of their best friend are having their vocal cords removed so they won't be found out.

It's all very shocking to me, even when I know China is tough on rabies. I guess Guangzhou must not have a very strong chapter of the SPCA... any bloggers out there happen to know what country kills the most dogs per annum?

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[boomerang] Posted by HK Dave at 22:12
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» The Peking Duck links with: Guangzhou pet dogs beaten to death by government teams




Daily linklets 3rd October

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[boomerang] Posted by Simon at 15:28
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Site news and stats for September

Before I get to the numbers for September, a few important announcements.

1. With the help of my good buddy Jim, I have registered and steup the website http://www.simonworld.net as a secondary adress for this blog. Both sites will have exactly the same information and format, and either can be read, linked, or referenced in the usual manner. There is no need to adjust your bookmarks or links, but this should make it easier for those who find the .mu.nu domain too difficult to deal with while providing a potential backup site...just in case.

2. I have had the pleasure of using Phin from apothegm design to do some maintenance work around the site. The response was quick, the cost modest and the results perfect. If you need any site work or design help, give 'em a call.

3. Thanks to the top referrers for September:

Rockson
Hemlock
Mr Brown
Seelai
Cowboy Caleb
Danwei
Peking Duck
ESWN

Thank you to everyone else who also linked and visited.

For those interested, some stats for September:

* 28,178 unique visitors made 61,508 unique visits, reading a total of 166,466 pages,and drawing 13.23 GB of bandwidth.
* This equals 2,050 visitors per day reading 5,548 pages each day. In other words each visitor reads 2.7 pages on average. Each visitor returned on average 2.18 times during the month.
* 1,959 visited this site via their favourites/bookmarks. 217 subscribe via Bloglines and 178 via Feedburner.
* 65.6% of you use IE, 16.2% Firefox, 3.1% Safari, 1.4% Mozilla, 1.3% Opera and 1% Netscape to browse this site. 82.4% of you use Windows, 5.6% Mac, 1.1% Linux.
* 15.1% of visits were via search engines, of which Google was 74.4% and Yahoo 17.6%. The top search phrases were "Nancy Kissel", "Robert Kissel", "Simon World" (still no. 1 for that one!) and "Icered".
* The most visited individual page remains the "Nancy Kissel trial archive".



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[boomerang] Posted by Simon at 11:57
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» The Peking Duck links with: Life in Jiangxi defies the Celestial Nanny




Chinese statistical inflation

China's economic statistics are notoriously unreliable but most agree that China has been the recipient of huge amounts of foreign direct investment (FDI). Not according to UNCTAD:

China claims FDI of $5.42 bn from US in 2002 while US says $924 mn, a variation of 83%. Adding a new twist to the debate over China’s awesome FDI figures, a recent Unctad report has said the numbers claimed by the country are far in excess of those reported by investors.

China claims that it got FDI worth $5.42 billion from the US in 2002. But the US says it has invested a meagre $924 million during the period, Unctad’s World Investment Report 2005, says.

The discrepancy is visible in case of other investors as well. China says Hong Kong invested $17.86 billion in 2002. But Hong Kong says the amount is $15.93 billion. Again, Chinese data show that Japan pumped in $4.19 billion during the year, while Japan claims it invested $2.60 billion a discrepancy of 38 per cent.

Interestingly, an OECD report titled “China: Progress and Policy review” points out that FDI flow into China from OECD countries during 1995-2000 was $39.3 billion, while the Chinese commerce ministry shows $77 billion. The OECD report states, “MOFCOM (ministry of commerce of the People’s Republic of China) FDI statistics are not based on the internationally recognised standards that are generally applied by OECD countries.
Even allowing for different calculation methods, these are huge differences. Has the China boom been more hype than reality? If FDI has been lower than typically believed, there is even more "hot money" and less stable forms of investment in China and the trade/captial account problems between America and China are even more worrying.

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[boomerang] Posted by Simon at 10:41
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» The Peking Duck links with: Are China's FDI figures exaggerated?
» New Economist links with: Are China's FDI figures fudged?




Agricultural Subsidies are Lame

I read a bleeding-heart article, penned by Peter Mandelson in the Guardian newspaper today, about how European agricultural subsidies have helped developing countries. What rubbish. Mandelson's argument is that there are countries in the West Indies that depend on preferential treatment from Europe to sell their bananas.

But that totally misses the point that so many aspects of the liberalized world economy have seen revolutions in pricing benefiting both producers and consumers everywhere - but the Third World outside of China, Southeast Asia and India has been mostly missing out. Why? Because the simple economic theory of comparative advantage has been grossly perverted to make it cheaper for American farmers to make many products than farmers in Africa or South America. Let us hope that the Hong Kong meeting of the Doha round will finally bring this miscarriage of justice to an end. This one move, more than any other, may be the proverbial fishing rod for the developing world.

The European countries have always crowed about the high percentage of their GDP they donate to the developing world. But if they cancelled all that aid and just got rid of their agricultural subsidies instead, those countries (not to mention the European consumers) would be a lot better off.

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[boomerang] Posted by HK Dave at 10:06
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» Beijing Lives links with: Daily links October 2, 2005




October 01, 2005
The Chinese are revolting

The Economist writes about the growing number of "mass incidents" in China (no sub. req'd.). The article charts the explosion (pardon the pun) in riots and unrest in recent times on the back of growing wealth. It supports the thesis that as people have more personal possessions to defend, they will demand a greater say in how their lives are governed. The article is so good (dare I use the words must read? Yes, I dare) I've reproduce the whole thing below the jump, with some key parts highlighted:

THE Chinese government is getting increasingly twitchy about what officials say is a rapid growth in the number and scale of public protests. In its latest bid to quash them, this week it announced a sweeping ban on internet material that incites “illegal demonstrations”. Does China face serious instability? Probably not, for now at least. But in the longer term there are reasons to worry.

Quashing unrest has ever been a priority for the Communist Party. But over the past year or so it has put even more emphasis on tackling “mass incidents” as it calls the protests. These include a wide range of activity, from quiet sit-ins by a handful of people to all-in riots involving thousands. Almost always, they are sparked by local grievances, rather than antipathy to the party's rule. Yet China's most senior police official, Zhou Yongkang, has said that “actively preventing and properly handling” mass incidents was the main task for his Ministry of Public Security this year.

According to Mr Zhou, there were some 74,000 protests last year, involving more than 3.7m people; up from 10,000 in 1994 and 58,000 in 2003. Sun Liping, a Chinese academic, has calculated that demonstrations involving more than 100 people occurred in 337 cities and 1,955 counties in the first 10 months of last year. This amounted to between 120 and 250 such protests daily in urban areas, and 90 to 160 in villages. These figures are likely to be conservative. Chinese officials often try to cover up disturbances in their areas to avoid trouble with their superiors.

Under Mr Zhou's orders, police forces around the country this year have been merging existing anti-riot and counter-terrorist units into new “special police” tasked with responding rapidly to any mass protests that turn “highly confrontational”. Police officials say the existing units were too sluggish, too poorly trained and ill-coordinated to handle the upsurge in disturbances. The special police are to form small “assault squads” to tackle incidents involving violence or terrorism.

Only a few years ago, news of specific incidents seldom filtered out to foreign journalists. Now, thanks partly to a freer flow of information helped by the internet, by mobile telephony and, more rarely, by a slightly less constrained domestic press, hardly a week goes by without some protest coming to light. In June, thousands of people rioted in the town of Chizhou, in the eastern province of Anhui, after an altercation between a wealthy businessman and a cyclist over a minor traffic accident. In August, hundreds clashed with police in a land-related dispute that still simmers in the village of Taishi, in the southern province of Guangdong. Last month, the police in Shanghai detained dozens of people protesting against being evicted from their homes.

In some ways, this unrest makes China look a lot more like a normal developing country than the rigidly controlled system it was until the early 1990s. It is becoming increasingly common to encounter small-scale protests in Chinese cities that only a few years ago would have horrified order-obsessed cadres. An apartment block near your correspondent's home in Beijing has for weeks been scrawled with slogans protesting against the adjacent construction of a petrol station. “We want human rights,” says one. Residents say the police have not interfered, save to warn them not to protest during a big political gathering in the city.

Chinese officials often say that greater social unrest is normal in developing countries with a per capita GDP between $1,000 and $3,000. China's GDP per head surpassed $1,000 in 2003. But this appears to be little consolation. In August last year, President Hu Jintao appointed a high-level team, headed by Mr Zhou, to supervise the handling of protests and petitions. Official sources say Mr Hu dwelt on protests in a speech to party leaders in September 2004 and at the party's annual economic planning meeting in December. Late last year the party issued a document to senior officials telling them how to deal with unrest.

According to these sources, Mr Zhou's speeches are laced with warnings that political dissidents might try to manipulate local protests to put pressure on the party itself. This fear explains why the party has further squeezed non-governmental groups and dissidents in recent months. China Development Brief, a newsletter on Chinese civil society developments, reported that in recent weeks China's secret police had been interviewing staff of Chinese NGOs that receive foreign funding, as well as Chinese staff of foreign NGOs in China, about the purpose of their work. The government has suspended the registration of new international NGOs pending the outcome of these inquiries.

The party's dilemma is that much of the unrest is a product of the rapid economic growth that it is so keen to maintain. The outlook of many urban Chinese has changed profoundly since the 1990s as a result of the privatisation of hitherto heavily state-subsidised housing. Anxious to protect their new assets, property owners have increasingly clashed with developers, and their government backers, who have been trying to cash in on the resulting boom by erecting shopping malls and luxury housing. The expansion of cities has fuelled clashes with peasants whose land is needed for construction.

Some argue that these mostly isolated protests, if handled sensitively, could help China maintain overall stability by providing people with a way of venting frustrations. But Mao Shoulong, at Renmin University of China in Beijing, says the unrest is a sign that China lacks channels for people to air discontent in a more orderly fashion. Widespread corruption and an increasingly conspicuous wealth gap fuel a contempt for officialdom that can easily erupt into the kind of class-based rioting that occurred in Anhui in June.

And should the economy falter, urban China could be faced with the twin dangers of an angry middle class saddled with big mortgage commitments and declining property prices (a problem China has not yet had to face), as well as a big increase in the number of unemployed, who, along with unpaid pensioners, are the main participants in protests in those parts of the country left behind by the current boom. Widespread middle-class discontent, combined with blue-collar dissatisfaction, would be a much bigger threat to stability than China now faces.




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[boomerang] Posted by Simon at 22:41
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» Newsgator Herald links with: A Voice should be heard and taken note of




It's really over for Taishi

A few days back the SCMP reported that the hoped for democratic revolution in the village of Taishi was quashed. Today's SCMP fleshes out the details of how effectively and comprehensively the authorities have won in stamping out this potential change:

Authorities in Panyu, Guangdong, have officially declared an end to the three-month struggle by Taishi villagers to exercise their civil rights and unseat their village chief. Both the Guangzhou Daily and the Panyu Daily published official statements yesterday saying that the villagers had withdrawn their application to remove village chief Chen Jinsheng .

The statement said 396 of the 584 villagers who had earlier signed a removal motion had withdrawn their signatures. It said the villagers now believed Mr Chen was not corrupt and that a township government investigation had found no evidence of misconduct by him. The Panyu Daily said "some irresponsible media" had "stirred up" the dispute, and that district officials had found no truth to the allegations against Mr Chen, and made "no discovery of any officials who have harmed the interests of the public for personal gain".

Villagers in Taishi began their efforts to remove Mr Chen in July. They alleged that he had misused village funds, and that evidence was contained in account books kept in the village office. However, officials seized the account books last month during a confrontation between villagers who opposed Mr Chen and police. About 16 people, including lawyer Yang Maodong - better known as Guo Feixiong - were still in police custody, Guangzhou lawyer Tang Jingling said.
Village leaders who took part in the protests against Mr Chen were not available for comment yesterday, and the few villagers contacted either said they had no knowledge of the latest development or declined to comment.

Discussions of the Taishi incident were deleted yesterday on at least two online forums. Zhang Yaojie , a Beijing scholar who has kept a close watch on the incident, said that when vested local interests felt threatened, they would do everything they could to silence their  opponents. "It once again proves that all so-called `grass-roots democracies' are just a hoax. Villagers obey the law, and what awaits them is punishment," he said referring to the villagers still in detention. "If a village can't achieve democracy, how can a country? If public power can't be checked, what can we do? There is nothing we can do."
But Mr Zhang, who had already foreseen Taishi's failure, said the authorities could not prevent similar disputes emerging. "There will be a second and a third Taishi village and one by one they will fail. But one day they will succeed - when there is institutional change to the system," he said.

Sun Yat-sen University professor Ai Xiaoming , who has published an open letter urging Premier Wen Jiabao to intervene, said she was neither surprised, nor disappointed. "Democracy cannot be achieved in just days. And we shouldn't put all our hopes for democracy on the villagers of Taishi and expect them to do it for us. The villagers have done what they could do. Besides being respectful, we ought to show a degree of understanding about the difficulties they faced."

Calling on the authorities to release the detained villagers, Professor Ai said the villagers' efforts would not go to waste. "People will continue to think about and discuss these issues," she said.

Chalk this up as another victory for authoritarianism, corruption, business as usual, suppresion of free speech and everything that's wrong with "New China". And lest you think Hong Kong is immune, a brief example of the more subtle suppression of free speech in the Big Lychee today, also courtesy the SCMP:

A hotel's last-minute cancellation yesterday of a conference room booking for a forum on mainland politics was condemned by the event's organiser, which accused the venue of giving in to political pressure from Beijing. A spokeswoman for the Epoch Times newspaper, Amy Chu Tung-pan, said the Conrad Hotel in Admiralty refused to rent out the conference room yesterday morning, citing a water leak. "The hotel said they could not rent out the room to us lest it have a negative impact on its image," Ms Chu said. The newspaper said it made the booking a month ago. The Conrad Hotel declined to comment. Rob Anders, a member of parliament in Canada and one of the speakers at the forum, said he did not believe the hotel's explanation. He said he saw the forum was on the list of events in the hotel lobby at 7am yesterday, but it was taken down two hours later.

"By giving in to the intimidation from mainland China, the Conrad Hotel is helping to jeopardise prosperity and freedom in Hong Kong," Mr Anders said.
The newspaper switched the venue of the forum, entitled "The Future of China", to Hong Kong Park. About 50 people, many of them Falun Gong supporters, took part in the event.

Szeto Wah, chairman of the Hong Kong Alliance in Support of Patriotic Democratic Movements in China and another of the speakers at the event, said Hong Kong's competitiveness would be hampered if the city's companies continued to succumb to political pressure. Another speaker at the forum, Ming Chu-cheng, professor of political science at the National Taiwan University, said he was interrogated by immigration officers when he arrived at Chek Lap Kok airport on Thursday evening.

I'm no fan of the Epoch Times nor the Falun Gong, but having 50 people turn up for a well-advertised chin wag only to cancel at the last minute demonstrates the power of fear in enforcing self-censorship.

The flipside is kudos should go to the SCMP, which bravely ran the Epoch Times' advertisements for two days running and dared to report on the cancellation of the meeting. Very brave indeed.



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[boomerang] Posted by Simon at 22:31
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» Daai Tou Laam Diary links with: Those Supporting CCP Economics