From Volume 7, Issue 49 of EIR Online, Published Dec. 2, 2008
Asia News Digest

Thai Mob Exposed as Fascists, Backed by Army and Monarchy

Nov. 26 (EIRNS)—The fascist mob that has closed down the international airport in Bangkok, in addition to beating and shooting government supporters across the city, has finally been labeled for what they are by someone other than EIR. A leading political commentator, Chulalongkorn University professor Giles Ji Ungpakorn, writes today in the Asia Sentinel: "Suvarnabhumi International Airport in Bangkok has now been closed by fascist thugs from the anti-government People's Alliance for Democracy (PAD), which is demanding that the elected government resign. This is despite the fact that the government has the backing of the majority of the Thai population and even the majority of Bangkok citizens.... Thai airports are controlled by the Thai military. It is obvious that the Thai military, which staged an illegal coup in 2006, has quietly supported the PAD's actions. It is obvious that the military is unwilling to provide basic security to air travelers and air crew.... The PAD is a royalist fascist mob which has powerful backing. Apart from the army, they are supported by the Queen, the so-called Democrat Party, the courts, the mainstream media and most university academics. What these people have in common is a total contempt for the Thai electorate, who are poor. They are angry that the Thai people voted for a government that gave the poor universal health care and other benefits. They want to turn the clock back to a dictatorship which they call 'the New Order.'"

In fact, the Army Chief today went on television to demand that the government accede to the mob's demand to resign, while insisting that "this is not a coup" (the last coup and military dictatorship in 2006-07 didn't turn out so well). Prime Minister Somchai Wogsawat, who returned from the APEC Summit in Peru on Nov. 26 had to land in Chiang Mai Airport, where he rejected the Army demand, insisting he was democratically elected and would serve his term to the end.

Professor Ungpakorn is clearly risking arrest for lèse majesté. He asks: "Where is the king in all this? Throughout the three-year political crisis, the king has never attempted to diffuse the problem. Many Thais believe he supports the PAD, but it is more likely that the monarch has always been too weak to intervene in any crisis." It is widely reported in Thailand that the once nearly universal respect for the institution of the monarchy has been severely eroded, especially among the working classes.

BHP Drops Hostile Takeover of Rio Tinto

Nov. 25 (EIRNS)—BHP Billiton, one of the world's big-three mining firms, had been attempting to take over Rio Tinto, another of the big three, in a hostile deal that at one time was valued at $100 billion. Consummation of the deal would have given the combined Australian/Commonwealth firms a stranglehold on world markets for iron ore, copper, and other metals.

The deal was called off because of the collapse of the commodity markets for metals, the stock market values of both companies, and the collapse of the credit markets.

The hostile bid had angered iron ore customers around the world, including Posco, Korea's biggest steelmaker, and Japan's JFE Steel Corp., ranked third worldwide. The acquisition would have raised iron ore prices and should have been blocked by regulators, the steelmakers said. Sajjan Jindal, managing director of JSW Steel Ltd., India's third-biggest producer, said, "The steel industry has many players, but there are few in iron ore, so it would have created a monopolistic market."

No producers were as upset as those in China, which is the largest purchaser of Australian iron ore. Chinalco, the Aluminum Corp. of China, last February paid $14.1 billion for a 12% stake in Rio Tinto's London-listed shares, giving it a 9% share of the Rio Tinto Group (some shares are listed in Australia). Chinalco's buy was seen as an attempt to spoil the BHP-Rio Tinto merger so as to protect China's access to the iron ore supplies of Australia that is controlled by the companies.

"This is definitely good news," Lu Youqing, Chinalco's vice president, said today. "We respect BHP's decision."

Renewed Fight Over Japan's Postal Bank Privatization

Nov. 24 (EIRNS)—Japanese Prime Minister Taro Aso's support for an opposition bill before the Diet (parliament) to freeze the privatization of the Postal Bank, reported last week, has, as expected, given a renewed sense of fight to those who fought this travesty in 2005, when former Prime Minister Koizumi rammed it through on behalf of global speculators. Yomiuri reports today under the title, "LPD Feud Over Postal Privatization Re-Ignites," that, "The LDP will shortly establish a project team to discuss the issue of full postal privatization ahead of a three-yearly reexamination of related services in March required under the postal privatization law."

A meeting of the LDP parliamentary league on postal services was held Nov. 19, chaired by Shunichi Yamaguchi, an advisor to Prime Minister Aso, who was one of the "postal rebels" who fought Koizumi's sellout of the system which had channeled nearly all of the nation's savings into safe, but low-interest accounts which were used to sustain and expand infrastructure across the country. Koizumi used globalization arguments of "high returns" to justify the privatization.

Yomiuri reports: "Some members of the study group believe postal privatization has been a failure. As such, it is not ruling out the possibility of a sweeping review."

China To Expand Euro-Asia Rail Network to Xinjiang

Nov. 26 (EIRNS)—Construction is to begin next year on a second railroad for the vast northwestern Xinjiang Uighur Autonomous Region of China.

The new line will be parallel to the existing 1,892-kilometer (1,175-mile) Lanxin Railway, which links Gansu, Qinghai, and Xinjiang. Only passenger trains will run on it. The old Lanxin railway, when the new line is completed, will be used by cargo trains only.

Railway officials said the new rail line will break the transport bottleneck for Xinjiang's economic development, ease the pressure on the Euro-Asian continental bridge, and facilitate exchanges between China and its western neighbors. The cost is estimated at $17.6 billion. Almost as much is to be spent on improving Xinjiang's highway network between 2009 and 2013.

Laos Rail Network To Connect China, Vietnam, Thailand

Nov. 23 (EIRNS)—The Lao government announced plans to develop a nationwide railway to support the growing mining sector and heavy goods delivery. It will cover 2,500 km (1,500 miles) and cost more than US$13 billion to build. China has completed a design for a rail link from the Chinese border to the existing line in Thailand, creating a connection to the Thai ports. Vietnam is designing a second rail connection to Vietnamese ports.

The proposed network would be linked to Cambodia, Vietnam, and Thailand. The railway would mainly provide service for projects such as the mining of iron ore, copper, aluminum, and gold. "We can't use roads because they aren't good enough at present. They are not designed for heavy transport and will rapidly deteriorate," said Phetsamone Viraphanth, Laos's Planning and Cooperation Department Deputy director general. Road surfaces are already deteriorating from use by trucks loaded with minerals.

"The study was completed and reported to us but we are now searching for investors willing to fund the project," Viraphanth said.

Philippines To Lose 1 Million Export and Overseas Jobs

Nov. 24 (EIRNS)—The Philippines Department of Labor and Employment (DoLE) considers that at least 1 million jobs in export industries and overseas are at risk in the economic crisis.

Of the 9 million overseas Filipino workers, 129,000 who work in the United States under temporary working visas are at risk of being sent home. Also at risk are 130,000 seamen working on cruise ships, 268,000 factory workers in South Korea, Taiwan, and Macau, plus 48,000 domestic workers in Singapore, Macau, and Hongkong.

In all, the DoLE estimates that 590,000 oversea workers will likely get laid off as the economic collapse spreads. This is almost certainly a gross underestimate.

The Department pinpointed four major export sectors running the risk of either closing shop, downsizing operations, reduced working hours, freezing hiring, and/or cutting wages. On top of its list was the garments industry, with 120,000 workers. Other sectors are electronics, auto parts, and coconut oil.

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