Asia News Digest
CitiGroup Eyes Asia as Next Big Market
On Feb. 23, the Wall Street stock market, which had dropped by 100 points on a slew of bad profit reports, was pulled back almost from the brink by the news that CitiGroup has just bought the Korean-American Bank in Seoul for $2.75 billion. This means CitiGroup will make tons of money in Asia, Wall Street analysts concluded. "There is no doubt that they see Asia as the most important area for growth," said Richard Bove of Hoefer and Arnett. "This comes on the heels of Citi's announcement last month that it was partnering with Shanghai Pudong Development Bank to offer a foreign credit card aimed at the Chinese market." He also expected CitiGroup to focus on expanding its business from India to Japan, noting that "it's already moving aggressively" in South Korea, India, and China.
"Asia has 3 billion people, and there are only 285 million in the United States," Bove noted. "That makes Asia 10 times bigger than the United States, and their income is growing faster. All of CitiGroup's efforts are going to be put into expanding its position in this area of the world."
Wolfowitz Loses Reputation as 'Friend of Indonesia'
The neo-con effort to paint Indonesian terrorism as "al-Qaeda" is bunk, according to Sidney Jones, an Indonesian expert with the International Crisis Group. Jones has proven that, by showing the connections to the historic terrorist networks in the country, which have been driven by domestic issues. Although a group of Indonesian Afghansi, centered around Hambali (now in U.S custody), targetted Bali and the Marriott Hotel, Jones insists that once the handful of people around Hambali are arrested (most have been already), the chances of an international terrorist action are extremely slim.
Asked by EIR if she has had problems with U.S. neo-cons, and with Under Secretary of Defense Paul Wolfowitz, in particular (a former U.S. Ambassador to Indonesia, who portrays himself as the great friend of that country), Jones told the following story: Sometime after the Bali bombing (October 2002), Wolfowitz gave an interview to Indonesian television. Reporters asked Wolfowitz, politely, for his evidence that the bombing was carried out by al-Qaeda. Wolfowitz became defensive and attacked the Indonesians, who, he charged, couldn't see that terrorism was international, that their country was a nesting ground for al-Qaeda, and on and on. The show was broadcast several times across Indonesia, and since that time, Indonesians no longer think of him as a friend.
Philippines-U.S. Joint Exercises Could Provoke China
Some 2,000 U.S troops based in Okinawa, Japan, and an equal number of Filipino soldiers are joining the drill code-named Balikatan, which will be held on the main Philippines island of Luzon and in the southwestern island of Palawan. Palawan is situated near the potentially mineral-rich Spratlys, which are claimed in whole or in part, by the Philippines, Brunei, China, Malaysia, Taiwan, and Vietnam.
Filipino Armed Forces Chief of Staff Gen. Narciso Abaya claimed the exercises in Palawan were not related to the Spratlys issue. China has not yet issued any statement about the exercises near an area which China claims as its own.
Philippine military officials had said earlier that they had stepped up measures to protect those participating in the exercises, after the communist New People's Army (NPA) threatened to attack U.S troops.
Thailand Seeks Vietnam's Cooperation on Energy Projects
Thailand is looking for collaboration in exploration for new petroleum sources, as well as joint investment for a 300-MW power plant in Vietnam, which also involves a plan to connect both countries electrically through power lines from Laos' Nam Theun 2 power plant, according to Business Day Feb. 23. Thailand wants to sell its petroleum products to Vietnam, in line with Thai plans to become an energy trading hub in Southeast Asia, said Thai Energy Minister Prommin Lertsuridej following the Feb. 21-22 joint Cabinet meeting of the two countries in Vietnam.
"Vietnam's energy demand is two times higher than its GDP, which presents a good chance for Thailand to play a key role in energy development in Vietnam."
Thailand's PTT Exploration and Production (PTTEP) also expressed interest in new petroleum explorations in Vietnam, said Prommin, adding that PTTEP was granted a license from the Vietnamese government to explore petroleum in four places in southern Vietnam. Thailand has also proposed to install oil and gas pipelines in Vietnam. Thailand wants Vietnam to conduct a study on how energy could be developed from the Mekong River Basin, as well as how to stock water running from the river through to China as well as Vietnam for optimal use, added Prommin.
Fire in India's Rocket Launch Center Won't Affect Space Program in Major Way
An explosion at the Solid Propellant Booster Plant (SPROB) at India's Satish Dhawan Space Research Center (SHAR) Feb. 23 killed six engineers and technicians, The Hindu reports. According to the Indian Space Research Organization's chairman, G. Madhavan Nair, the preliminary investigation shows the cause was a fire, but how the fire started is not known yet. The accident occurred when one of the development motors being prepared for trial caught fire. A high-level committee has been set up to investigate the incident.
Madhavan Nair said the accident will not affect the space program in a big way, although it will delay some work. However, the loss caused by the fire was significant. The building housing the plant collapsed in the explosion.
Badawi Calls Off Trip to G-15 Summit as Elections Loom
Rather unexpectedly, Malaysian Prime Minister Abdullah Ahmad Badawi cancelled a week-long trip to Caracas, Venezuela, two days before it was scheduled to start on Feb. 25. He had planned to attend the G-15 Summit of developing countries, of which Malaysia is a founder.
Badawi did not cite any reason for calling off this important visit. One senior Malaysian government official told The News Feb. 24 that the cancellation had to do with preparations for snap general elections, which can be held at any time. The official also said that cancelling the trip was a clear indication that the Prime Minister is putting the final touches on election preparations, including selection of candidates and allocation of seats among the 14-party National Front coalition.
Myanmar's Road Map to Democracy; Norway Enters Second Round
Thailand has welcomed Norway's participation in the second round of the Bangkok Process on Myanmar's road map to democracy. The second round is expected to take place by the middle of this year, Thai Foreign Ministry spokesman Sihasak Phuangketkeow said on Feb. 24.
Meeting his Norwegian counterpart Jan Petersen, Thai Foreign Minister Surakiart Sathirathai said: "Thailand is looking forward to Norway taking part in the next round of the Bangkok Process.... We want to see Norway at the meeting because it has played an important role in other peace processes as well."
The Thai Foreign Ministry spokesman also pointed out that the United States has not indicated direct involvement in the process, but has indicated its support and its hope that the process would move forward.
China Will Not Join U.S.-Led Security Plan
Reacting to the Feb. 11 speech by President Bush at the National Defense University in Washington, in which the President outlined new measures to prevent future nuclear proliferation, China has expressed a disinclination to join the U.S-led Proliferation Security Initiative (PSI).
According to the Bush formula, the PSI has been projected as a mechanism to intercept illegal transfers of nuclear-related technologies and equipment related to the production and deployment of all categories of weapons of mass destruction (WMD). Several countries in China's Asia-Pacific neighborhood, including Australia and Japan, have joined hands with the U.S. in this initiative. The PSI calls for intercepting ships within or outside waters of any participant country. On Feb. 11, President Bush extended this interception process to include Interpol raids of facilities inside countries suspected of involvement in the illegal trafficking of nuclear equipment and fuel.
But China has expressed serious concerns. Speaking to reporters, China's Foreign Ministry spokeswoman Zhang Qiyue said that China questions the legal foundation and consequences of the PSI interception.
Zhang Qiyue also pointed out that during the recent meetings between the U.S. Under Secretary of State John Bolton and Chinese officials in Beijing, Foreign Ministry Li Zhaoxing and Vice Foreign Minister Zhang Yesui expressed China's understanding for the concern of the PSI participant countries on the proliferation of WMD and vehicles (missiles).
Pakistani Delegations to India Promote Trade
Following the easing of tensions between Pakistan and India in early January, a number of Pakistani delegations have visited India. "These are positive steps ... and would promote bilateral trade and joint ventures in the long run," said India's Commerce and Industry Minister Arun Jaitley.
On Feb. 26, one such delegation from the Karachi Chamber of Commerce met with Indian business leaders and identified textiles, information technology, auto parts, pharmaceuticals, power, and entertainment sectors as areas for potential bilateral trade.
Jaitley told reporters that there is immense scope for cooperation in trade in tea, entertainment, health care, IT, and pharmaceuticals from India; and cotton, power, and textiles from Pakistan.
India has a population of more than 1 billion, and Pakistan, about 140 million.
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