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MONDAY, JULY 11, 2011 108TH YEAR I ©2011 THE MIAMI HERALD
Obama suspends $800M in aid to Pakistan
Geithner says Obama to seek biggest debt cut possible
BY DOUGLAS BIRCH Associated Press
BY GARDINER HARRIS
WASHINGTON — U.S. President Barack Obama has ordered the suspension of $800 million in aid to the Pakistani military, his chief of staff said Sunday, as part of what experts say is a tougher line with a critical U.S. partner in the ﬁght against terrorism. Top aide William Daley described the U.S. relationship with Pakistan as “difﬁcult” and said it must be made “to work over time”. But he added that until “we get through that difﬁculty, we’ll hold back some of the money that the American taxpayers are committed to give” Pakistan. The suspension of U.S. aid, ﬁrst reported by the New York Times, followed a statement last week by Adm. Mike Mullen, chairman of the U.S. Joint Chiefs of Staff, that Pakistan’s security services may have sanctioned the killing of a Pakistani journalist who wrote about inﬁltration of the military by extremists. The allegation was rejected by Pakistan’s powerful military establishment, including the Directorate of Inter-Services Intelligence, which has historic ties to the Taliban and other militant groups and which many Western analysts regard as a state-within-a-state. Daley, interviewed on ABC television’s This Week, suggested the decision to suspend military aid resulted from the increasing estrangement between the United States and Pakistan, especially since the U.S. raid in May that killed al Qaeda leader Osama bin Laden not far from Pakistan’s equivalent of the U.S. Military Academy at West Point. “Obviously there’s still a lot of pain that the political system in Pakistan is feeling by virtue of the raid that we did to get Osama bin Laden,” Daley said. A senior U.S. ofﬁcial said the suspension was triggered by the Pakistani army’s decision to signiﬁcantly reduce the number of visas for U.S. military trainers. “We remain committed to helping Pakistan build its capabilities, but we have communicated to Pakistani ofﬁcials on numerous occasions that we require certain support in order to provide certain assistance,” said the ofﬁcial, who was not authorized to discuss the issue publicly and spoke only on condition of anonymity.
New York Times Service
PHOTOS BY GETTY IMAGES
News Corp. chief Rupert Murdoch, center, speaks with his son James, right, and Rebekah Brooks, the chief executive of News International.
TROUBLED HEIR HACKING SCANDAL POSES DEFINING TEST FOR MURDOCH’S SON BY TIM ARANGO New York Times Service
On Thursday afternoon, James Murdoch assembled senior executives in the top-ﬂoor boardroom in News Corp.’s London headquarters and told them of a momentous decision: to shutter the 168-year-old tabloid at the center of a deepening phone-hacking scandal and the original heart of the Murdoch media empire in Britain. Hours earlier, he had prevailed on his father, Rupert, and his chief lieutenant, Chase Carey, in a phone call from London to Sun Valley, Idaho, where they were attending a confer-
ence, according to two people briefed on the matter. Under pressure to quell the scandal and preserve a lucrative deal for a pay-television company, James Murdoch argued that closing the newspaper was necessary to restore respect to the company, they said. Now Murdoch faces a new test as he jockeys to one day run his father’s company and salvage the biggest deal in the Murdochs’ history, a $12 billion takeover of British Sky Broadcasting, or BSkyB. With the scandal mushrooming as two former employees were arrested and new charges surfaced that
ultimately decide whether Switt was merely “colorful,” as a lawyer PHILADELPHIA — Who owns for the family described him, or a 10 exceedingly rare U.S. gold coins thief. from 1933? Each side explained in opening Is it the family of a local gold arguments that, for all of the histodealer who died 21 years ago? Or ry and complexities of 1930s Mint is it the U.S. government, procedures and records to which produced a half come, the case is quite million of the coins simple. They disbefore melting all agreed, however, of them — well, about what the almost all of simple point of them — down? the case was. F a m i l y Assistant members, who U.S. Attorsay they found ney Jacqueline the coins in a Romero, presafe deposit box senting the govin 2003, argue ernment’s case, they are the righttold jurors, “You are ful owners of the exgoing to hear a remarkU.S. MINT quisite “double eagle,” able and intriguing story $20 denomination coins, each about gold coins that were stolen now worth millions of dollars. The from the U.S. Mint.” government argues that the coins, “Israel Switt was somehow innever ofﬁcially released, belong to volved” in the theft, she said, probthe United States and not the heirs ably with the help of a corrupt caof Israel Switt, the gold dealer. shier at the Philadelphia Mint. The And so to court. government had linked Switt to evIn a case that began Thursday, ery double eagle that had emerged jurors are getting an unusual lesson in Depression-era history and will • TURN TO COINS, 2A
BY JOHN SCHWARTZ
New York Times Service
• TURN TO MURDOCH, 2A
Editor Colin Myler, center, leads staff out of the News of The World offices in London on Saturday.
• TURN TO AID, 2A
Family battles U.S. over 10 coins worth millions
executives had tried to obstruct investigations, he could emerge as the company’s decisive new leader or as the tainted son who mismanaged one of the greatest crises the family business has faced. The struggle is both a generational shift and economic one: how best to respond to changes that face the news industry, and who at News Corp. is best equipped to decide. Murdoch appeared to act quickly to close the News of the World, Britain’s largestcirculation Sunday paper, which
U.S. Treasury Secretary Timothy Geithner said Sunday that President Barack Obama would continue to press for the largest deﬁcit reduction possible in negotiations with Congressional leaders over raising the government’s debt ceiling, adding that “it’s not clear that it’s easier trying to do less.” The remarks came after House Speaker John Boehner released a statement Saturday night saying he was pulling back from efforts for a deal that would reduce the deﬁcit by as much as $4 trillion over 10 years. Boehner said he would instead focus on crafting a smaller package more in line with the $2 trillion to $3 trillion in spending cuts and revenue increases negotiated earlier by Vice President Joseph R. Biden Jr. On the CBS program Face the Nation, Geithner said the main problem in the negotiations was the Republican insistence that any deal involve only spending cuts and no tax increases. “And as you saw on the Ryan budget,” he said, referring to a plan proposed by Rep. Paul Ryan, R-Wis., that would cut entitlement programs, “if you try to do it with just cuts, you’re putting unacceptably deep cuts in beneﬁts for Medicare beneﬁciaries in the future and you can’t do that politically, and it’s unfair to do it.” Top Republicans reiterated Sunday that they would not accept a deal that included increased taxes. On Fox News Sunday, the Senate Minority Leader Mitch McConnell of Kentucky said that he was “for the biggest deal possible, too, it’s just that we’re not going to raise taxes in the middle of this horrible economic situation”. Although Republican presidential candidates like Rep. Michele Bachmann, R-Minn., have said that raising the debt ceiling would be a mistake no matter what deal is struck, McConnell said on Sunday that “nobody is talking about not raising the debt ceiling. I haven’t heard that discussed by anybody”. McConnell said he had a “contingency plan” for raising the debt ceiling before the Aug. 2 deadline, when the Treasury has said the government would begin defaulting on some debt. He said he would reveal his plan later this week if negotiations with the White House fail.
Former U.S. first lady Betty Ford dies tive life, Elizabeth Anne Ford dis- a statement. “As our nation’s ﬁrst tinguished herself through her lady, she was a powerful advocate Former U.S. ﬁrst lady Betty courage and compassion,” PresiFord, who captivated the nation dent Barack Obama said Friday in • TURN TO FORD, 5A with her unabashed candor and forthright discussion of her personal battles with breast cancer, prescription drug addiction and alcoholism, has died. She was 93. Ford died Friday at the Eisenhower Medical Center in Rancho Mirage, Calif., according to Barbara Lewandroski, a family representative. The cause was not given. As wife of Gerald R. Ford, the 38th president of the United States and the only person to hold that ofﬁce without ﬁrst being elected vice president or president, she spent a brief yet remarkable time as the nation’s ﬁrst lady. But after he left ofﬁce and even after his death in 2006 at 93, she had considerable inﬂuence as founder of the widely emulated Betty Ford AFP FILE, 1974 Center for the treatment of chemBetty Ford hugs her husband, U.S. President Gerald Ford, ical dependencies. “Throughout her long and ac- at the White House. BY MARLENE CIMONS
Los Angeles Times Service
INDEX S. SUDAN CELEBRATES BIRTH WITH RAISING OF FLAG, 3A
POOR JOB NUMBERS SHOW RECOVERY FALTERING, BUSINESS FRONT
U.S. BEATS BRAZIL IN WOMEN’S WORLD CUP, SPORTS FRONT
THE AMERICAS ...........4A WORLD NEWS.............6A OPINION........................7A COMICS & PUZZLES .....6B
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