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New U.N. Security Council to reflect the 21st century members on their ability to put international concerns over their own national and regional interests. The new council met together for the first time this week, representing a world in which former colonial states have become economic and political powerhouses. Besides India and South Africa, Brazil and oil-rich Nigeria already are members. The first order of business was a political stalemate in the west African nation of Ivory Coast, where the incumbent president is refusing to step aside for the man the world says beat him in recent elections. The council this week will also

BY ANITA SNOW Associated Press

UNITED NATIONS — The U.N. Security Council has launched the new work year with a fresh mix of non-permanent nations including India and South Africa whose diversity better reflects the modern world but could complicate efforts to reach consensus. The United Nations’ most powerful body has been criticized for sometimes failing to properly represent the world, especially the poorer, non-Western states. The new assemblage will offer a glimpse of how a more diverse panel might work together if efforts prevail to expand the number of permanent council seats. It also will test new • TURN TO COUNCIL, 2A HERIBERTO RODRIGUEZ/MCT

CITY TUNES: The organ grinders of Mexico City, such as Yazmin Flores, above, play portable wooden barrels that were brought from Germany to Mexico a century ago.

U.S. building network to go after militants

A love affair fades As Mexico’s organ grinders age, a signature sound is dying out BY TIM JOHNSON McClatchy News Service

MEXICO CITY — Few sounds are so distinctive to this capital as the tinkling, whistling melodies that itinerant organ grinders coax from their portable wooden barrel organs. Hardly a downtown street corner or park is without a grinder in a khaki uniform turning the crank on a hefty instrument that whistles its high notes and rumbles with a bass refrain. An assistant passes a hat among pedestrians, collecting change. One of the signature sounds of Mexico City probably would never have taken hold if an itinerant family of Italian organ grinders hadn’t turned up nearly

a century ago in Berlin and begun to manufacture hand organs. The Frati family’s handiwork ended up as a German gift to Mexico, sparking a love affair. But a century-old romance faces a defining moment, wounded by the indifference of a younger generation. Few of the aging organ grinders in Mexico City say their offspring plan to follow in their footsteps. “I think it is dying out,” said Jaime Diaz, a physician who dropped a few pesos in the outstretched khaki hat of an organ grinder as he walked out of a church after mass. The hat belonged to Octavio Chavez Rodriguez, an energetic but stooped man who can re-

New storms drench flood-weary Australia BRISBANE, Australia — (AP) — Cleanup crews toiled under more pounding rains Thursday to clear mountains of debris in floodravaged communities across northeastern Australia, as one mayor warned it could take his city up to a year to recover from the worst flooding in decades. Officials were only beginning to see the scope of the damage as river levels across Queensland state started dropping despite new thunderstorms. Floodwaters were expected to stay high in many areas for at least another week, and officials warned evacuated residents to stay far away from their waterlogged homes. “It’s important for the community to remember that this event

is not over yet,” said Brad Carter, mayor of the inundated city of Rockhampton, which has evacuated 500 people. “Those residents who were required to evacuate their homes will not be able to return to their homes until the flood waters recede.” Four thousand people across Queensland have been evacuated from their homes since driving rains that began just before Christmas left much of the region under a sea of murky water. Around 1,200 homes have been inundated, with another 10,700 suffering some damage in the flood zone, an area greater than France and Germany combined. • TURN TO FLOODS, 2A

cite the history of the portable barrel organs from personal experience. “I’ve been doing this since I was 16, and I’m 70 years old now,” Chavez said. It’s been a good living that provided for a brood of sons, none of whom want to crank a hand organ fulltime. “They have other work. Only one works with me on Saturdays.” It is hard work. The hand organs can weigh as much as 80 or 90 pounds. Grinders must tote them to parks and markets. That’s why they always work in pairs, taking turns lugging the mechanical musical instruments. • TURN TO ORGANS, 4A


sharing of information and shorten the time between targeting and military action, said two current and two former U.S. officials briefed on the project. Those officials and others insisted on condition of anonymity to discuss the classified matters. The creation of the center comes as part of the administration’s increasing reliance on clandestine and covert action to hunt terror suspects as the wars in Afghanistan and Iraq have tested the United States’ patience and pocketbook. The White House has more than doubled the numbers of special operations forces in Afghanistan alone, as well as doubling the CIA’s use of missile

WASHINGTON — The Obama administration has ramped up its secret war on terror groups with a new military targeting center to oversee the growing use of special operations strikes against suspected militants in hot spots around the world, according to current and former U.S. officials. Run by the U.S. Joint Special Operations Command, the new center would be a significant step in streamlining targeting operations previously scattered among United States and battlefields abroad and giving elite military officials closer access to Washington decision-makers and counterterrorism experts, the officials said. The center aims to speed the • TURN TO NETWORK, 2A

French TV anchor accused of plagiarism BY DOREEN CARVAJAL New York Times Service

PARIS — A prominent French television journalist who has been accused in the past of faking an interview and receiving embezzled funds is now suspected of lifting almost 100 pages of material for a new Ernest Hemingway biography. The 400-page book by the journalist, Patrick Poivre d’Arvor, is scheduled to be published Jan. 19. But accusations surfaced this week in the French news magazine L’Express that he heavily borrowed passages from a French translation of a 1985 book, Along With Youth: Hemingway, the Early Years, by Peter Griffin, of the United States. Material in Poivre d’Arvor’s biography appears to hew closely to details in Griffin’s 258-page book, like a description of Hemingway’s treatment for a gunshot wound, from the smell of antiseptic and blood in the clinic to the Italian doctor who offered him cognac as an anesthetic. Griffin, the author of two books on Hemingway, died in 2002 while at work on a biography of Vincent van Gogh. His first book about Hemingway grew out of his doctoral dissertation at Brown and relied on a collection of letters from Hemingway’s first wife, Hadley Richardson. The book was translated into French by the Gallimard publishing house in Paris. Poivre d’Arvor could not be reached for comment , but he reacted angrily to the L’Express article.

“I spent a year and a half writing this book, and I find it very offensive to be suspected of plagiarism,” he was quoted by the magazine as saying. “I naturally relied on documents from numerous existing biographies, a number of them by Griffin, who seemed the best on young Hemingway. But I never reinvented his life.” Poivre d’Arvor’s publisher, Arthaud, issued a news release that said the version of the book that was obtained by the French magazine had been released in error in December. “It was a working draft version,” the release said. “It does not correspond with the final version validated by the author.” The editor of L’Express, Christophe Barbier, said he had personally received a copy of the Hemingway manuscript in mid-December, and he displayed a handwritten dedication from Poivre d’Arvor. But the explanation raised even more questions, like whether Poivre d’Arvor had relied on a ghost writer. Oxford University Press, which published Griffin’s book, is investigating and said it would not comment until completing its review, said

Christian Purdy, the publisher’s director of publicity in New York. Poivre d’Arvor was a news anchor on France’s main privately run channel, TF1, from the mid-1980s until 2008. His image remains a fixture on the Canal Plus network — as a latex puppet that is the host of the popular satirical show Les Guignols d’Info, or News Puppets. In 1991, he was embroiled in controversy when he claimed an exclusive interview with Fidel Castro that used stock news conference footage mixed with his own questions. He also received a suspended prison term for receiving money embezzled by a businessman who paid him to attend dinners in Cannes, France, and in the Antilles.




NOT DONE YET: Floodwaters are expected to stay high in many areas of Australia for at least another week. The city of Rockhampton, above, is submerged.

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THE AMERICAS.......... 4A WORLD NEWS........... 6A OPINION....................... 7A COMICS & PUZZLES.. 6B

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U.S. building a network to take on militants • NETWORK, FROM 1A

strikes from unmanned drones in Pakistan and expanding counterterrorism operations in Yemen. JSOC’s decision-making process in counterterrorism operations had previously been spread between special operations officials at Pope Air Force base in North Carolina, top officials at the Pentagon and commanders on the battlefield. Now located at a classified address a short drive from the Pentagon, the center is staffed with at least 100 counterterrorism experts fusing the military’s special operations elite with analysts, intelligence and law enforcement officials from the FBI, Homeland Security and other agencies, the U.S. officials said. The new center is similar in concept to the civilian National Counterterrorism Center, which was developed in 2004 as a wide-scope defensive bulwark in the wake of the Sept. 11, 2001 attacks to share intelligence and track terrorist threats. But the new military center focuses instead on the offensive end of counterterrorism, tracking and targeting terrorist threats that have surfaced in recent years from Pakistan to Yemen and Somalia and other hot zones. Its targeting advice will largely direct elite special operations forces in both commando raids and missile strikes overseas. The data also could be used at times to advise domestic law enforcement in dealing with suspected terrorists inside the United States, the officials said. But the civilian authorities would have no role in “kill or capture” operations targeting militant suspects abroad. The center is similar to several other so-called mili-

tary intelligence “fusion” centers already operating in Iraq and Afghanistan. Those installations were designed to put special operations officials in the same room with intelligence professionals and analysts, allowing U.S. forces to shave the time between finding and tracking a target, and deciding how to respond. At the heart of the new center’s analysis is a cloudcomputing network tied into all elements of U.S. national security, from the eavesdropping capabilities of the National Security Agency to Homeland Security’s bordermonitoring databases. The computer is designed to sift through masses of information to track militant suspects across the globe, said two U.S. officials familiar with the system. Several military officials said the center is the brainchild of JSOC’s current commander, Vice Adm. Bill McRaven, who patterned it on the success of a military system called “counter-network,” which uses drone, satellite and human intelligence to drive operations on the ground in Iraq and Afghanistan. While directly run by JSOC, the center’s staff is overseen by the Pentagon, while congressional committees have been briefed on its operations, officials said. Locating the center in Washington has the advantage of tying in special operations forces officials to the NSA’s electronic data and to the White House’s decision-making arm, the National Security Council, said Brookings Institute’s Michael O’Hanlon. “There’s ready access to the NSC for face to face decisionmaking,” he said. O’Hanlon, who specializes in national security and defense policy, predicts positive U.S. public reaction to


AGGRESSIVE: A new U.S. military targeting center is overseeing special operation strikes against militants, according to U.S. officials. Above, a Special Warfare Combatant Craft crew performs a training exercise in Newport News, Va. the military’s expanding use of special operations forces in counterterrorism strategy. “After spending a trillion dollars on two countries, Iraq and Afghanistan, with so far questionable result, people will say, heck yeah. This is the only tool of foreign policy where we can see immedi ate, positive results,” he said. Officials said Afghanistan has been a proving ground for both the military’s growing use of special operations forces in raids against militants and in honing its “counter-network” system. Over the past year, the numbers of special operations forces and commando raids against militants have surged in Afghanistan. Two strike forces have grown to 12, according to an intelligence official who spoke on condition of anonymity to discuss classified matters.

“We’ve gone from 30-35 targeted operations a month in June 2009 now to about 1,000 a month,” said NATO spokeswoman Maj. Sunset Belinsky. “More than 80 percent result in capture, and more than 80 percent of the time we capture a targeted individual or someone with a direct connection.” The raids have often come at night, when civilians are indoors and night vision equipment gives the U.S. raiders the advantage in what military officials often describe as finding, fixing and finishing a target. The raids are aimed at capturing or killing militants, but despite the military’s emphasis on capturing suspects to bolster intelligence on the enemy, the killings have often attracted the most attention. The night raids have been a source of constant complaint by Afghanistan’s President

Fresh storms drench Australia • FLOODS, FROM 1A

The flooding has already had a major economic impact on the region, shutting down three-quarters of the state’s lucrative coal mines and devastating crops. The total cost is not yet known, but Queensland Premier Anna Bligh said the price of rebuilding homes, businesses and infrastructure coupled with economic losses could be as high as $5 billion. The flooded city of Bund-

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aberg, a major producer of sweet potatoes and peanuts, launched a task force to determine how much damage the deluge has done. “This region supplies about a third of Australia’s small crops, and we need to know what the impact is going to be on farming in the area, and what impact it’s going to have on the rest of the country,” Mayor Lorraine Pyefinch said. “We’re responsible for feeding the country, so that’s something we need to look at closely.”

The good news for the nearly 200,000 flood victims is that the crisis finally appeared to be easing. Despite the fresh rains, the overflowing Fitzroy River in Rockhampton began slowly receding Thursday. It has spilled onto 3,000 properties throughout the city, leaving 200 homes with water above the floorboards. The mayor warned the city of 75,000 was in for a long cleanup and recovery period.

“I think that this could drag on for 12 months,” Carter said. In the state’s southwest, the 150 residents of the tiny community of Condamine had hoped to return home Thursday, a week after they were airlifted to safety when the Condamine River inundated 42 of the 60 homes. But a storm that rolled in Wednesday shut down highways and more rain forecast through the weekend could delay their return.

Hamid Karzai, who calls them a violation of Afghan sovereignty. U.S. officials insist the night raids always have a small team of Afghan security forces in the lead. Gen. David Petraeus, the overall Afghan commander, now briefs Karzai on the raids almost weekly to reassure him, according to a senior U.S. official in Kabul, Afghanistan, who spoke on condition of anonymity to discuss highlevel conversations. The emphasis on capturing militants and quickly sifting through evidence left at their capture scene was developed under now-retired Gen. Stanley McChrystal. He commanded U.S. forces in Afghanistan until he was dismissed last June by U.S. President Barack Obama after unflattering comments by the general’s staff about the White House appeared in a Rolling Stone magazine story.

McChrystal’s intelligence chief, Brig. Gen. Michael Flynn, recognized early innovations by special operations forces in the field and then refined the intelligence sharing process among the military into the “counternetwork” system. Under that system, U.S. special operations forces have acted as police crime scene investigators, quickly combing for evidence after capturing or killing their targets. They bring their data back to a team of defense intelligence analysts who work with interrogators questioning captured suspects. Their teamwork, officials said, speeds up the targeting of new terror suspects. Similarly, the military’s new targeting center near Washington will rely on a steady flow of information and evidence from the field, which will then by analyzed by special operations experts and their civilian counterparts. A tip from Africa that suspected militants are planning a strike in the United States, for example, would lead to the names of those suspects being fed into the cloudcomputing network. The computer would compare the information with U.S. and international border and flight information, mined from the database of watch lists from the Counterterrorism Center, DHS and the FBI. If the targets surface overseas, for example, in a country such as Somalia, where special operations forces have already staged snatchand-grab raids against militants, the military forces would likely be chosen to pursue the targets. But if the suspected militants turned up inside the United States, the FBI and other domestic law enforcement would take the lead, officials said.

New U.N. Security Council reflects the 21st century • COUNCIL, FROM 1A

discuss weekend elections in Sudan that are expected to divide Africa’s largest country into two. “These countries want to be at the inner sanctum, to be at the table, but they also tend to be in a postcolonial, anti-interventionist mindset that can worry the United States” and other Western nations, said U.N. specialist Stewart Patrick from the Council on Foreign Relations, a New York-based think tank. He said this year’s mix will be a “testing ground” for what a larger, more diverse Security Council could look and act like. India is now the world’s largest liberal democracy and a nuclear power. South Africa has blossomed politically and economically since apartheid ended 17 years ago and is now a major leader in Africa, home to more U.N. member states than any other continent. Latin American giant Brazil boasts the world’s eighth largest GDP. “Everyone will be watching whether they make good use of the tools they have on the council, whether they will be willing to go after rogue states,” Patrick said. “Will they be willing to go after those accused of gross human rights violations?” Germany, Europe’s largest economy, is also on the council this time around, adding heft to an already muscular mix. Portugal and Colombia are also new council members. Indian Ambassador Hardeep Singh Puri said the new diversity provides “a good opportunity to see what it would be like,” with countries such as India, Brazil and South Africa playing a larger role.

‘Everyone will be watching whether they make good use of the tools they have on the council, whether they will be willing to go after rogue states.’ — STEWART PATRICK, Council on Foreign Relations

Bruce Jones, a former senior U.N. staffer who now directs New York University’s Center on International Cooperation, said he’s “relatively optimistic” that the new members will put international concerns first. “For instance, India isn’t the India of 10 years ago, playing to the Group of 77,” which represents 132 mainly developing counties and China, he said. “This is an India that has strategic relations with the United States.” The 15-member council is empowered to authorize military force and impose sanctions to ensure the world’s peace and security. The five permanent members — the United States, Britain, France, China and Russia — have veto power. The 10 non-permanent members represent all regions of the world and are elected for two-year terms. Brazil, Japan, Germany and India have been lobbying for years for permanent seats on an expanded council. India’s bid for a permanent seat got a boost from U.S. President Barack Obama in November when he visited New Delhi. Africa is also demanding two permanent seats with veto power.

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Obama picks Daley as chief of staff BY BEN FELLER New York Times Service


SET FOR A FACELIFT: The resumption of work on the half-finished Revel casino, above, is set to be among the highlights of 2011 in Atlantic City.

2011 could see big changes for Atlantic City BY WAYNE PARRY Associated Press

ATLANTIC CITY — Atlantic City could see major changes in 2011 that could help the United States’ second-largest gambling market come back to life after stalling and struggling for four years. By the end of the year, construction could be under way on two new casinos, gamblers could be allowed to place bets online and voters will have weighed in on whether they want New Jersey to offer legalized sports betting. A new state-run tourism district is expected to be up and running, taking responsibility for making the area around the casinos and boardwalk safer, cleaner and better-run. The 11 casinos themselves could be subject to much less regulation and oversight by the state. One or more of the casinos could be in new hands — at a much cheaper price — before the ball drops in Times Square again. “2011 is going to be a very important year in advancing the solutions we need to keep Atlantic City competitive in the future,” said Mark Giannantonio, president of the Tropicana Casino and Resort. “It is certainly a foundation year.” Bob Griffin, chief executive of Trump Entertainment Resorts, which owns three casinos here, foresees 2011 as “a transitional year for Atlantic City.” “I’m not kidding myself about 2011; there’s a lot of heavy lifting to do,” he said. “But I’m very positive about the future three to five years after that because of the work we’re doing now.” The most visible sign of progress in Atlantic City would be the resumption of work on the half-finished Revel casino at the northern end of the boardwalk. LITANY OF WOES Begun in 2007 before the national recession hit and credit markets dried up, Revel has been beset by problems, including the deaths of three key executives in a plane crash, a lack of funding to finish and a public backlash against a state tax break it once sought worth as much as $350 million over 20 years. Revel ran out of money in January 2009, laid off 400 workers and stopped work on all but the exterior of the project until it could find money to do the inside. In April, Morgan Stanley pulled out of the project, already having spent $1.2 billion on it, deciding it was better to take “a substantial loss” than continue. That set Revel chairman and chief executive Kevin DeSanctis scouring the globe for the remaining $1.2 billion or so needed to finish the project, soliciting everyone from Wall Street financiers to the Chinese government. DeSanctis said through a spokeswoman that he continues to seek financing, that work on the casino’s interior will start immediately after a funding commitment and that Revel will open 18 months after that. Lawmakers in Trenton will have a huge impact on Atlantic City’s future. On Jan. 6, the New Jersey Legislature is scheduled for final votes on measures that would create a state-run tourism district encompassing the casinos and the boardwalk and would entrust the casinos with more responsibility to govern themselves by cutting back on some state regulation. The tourism district would have power over public safety, cleanliness, planning and zoning. It would be administered by the Casino Reinvestment Development Authority, which has the power of eminent domain to condemn and raze vacant or blighted buildings. That’s precisely what state Senate President Stephen Sweeney envisions, particularly along Pacific Avenue, the seedy backdoor entrance to eight of the 11 casinos. SMALLER CASINOS “We’re talking about knocking down buildings and cleaning up the place so that people feel safe and comfortable walking there,” he said. A measure that already has passed the Legislature and is awaiting the signature of Gov. Chris Christie would authorize two new casinos with as few as 200 hotel rooms. Current law requires casinos to have at least 500 hotel rooms, and the most successful ones have 2,000 or more. But the going price for building that kind of resort has topped $2 billion. The smaller casinos could be done for several hundred million dollars. In return for not having to make as great an investment as their predecessors, the two new casinos would be taxed at a higher rate. Hard Rock International has said it wants to build one of the smaller casinos on the southern end of the boardwalk and is prepared to draw up blueprints soon after Christie signs the law. The new year also could vastly expand how people gamble in New Jersey. A bill to authorize Internet gambling in the Garden State needs a final vote in the Assembly in January, and the November general election ballot will ask voters whether they want sports betting to be legal, assuming a federal ban on the activity is overturned.

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WASHINGTON — U.S. President Barack Obama named veteran political manager William Daley to be his new chief of staff Thursday, selecting a centrist with Wall Street ties to help navigate a newly divided Congress and a looming reelection. “Few U.S. citizens can boast the breadth of experience that Bill brings to this job,” Obama told reporters in the East Room as Daley, 62, stood at his side. “But most of all, I know Bill to be somebody who cares deeply about this country, believes in its promise, and considers no calling higher and more important than serving the American people,” the president said. The appointment represented the most significant move in a far-reaching and ongoing staff shakeup that included the departure of Obama’s press secretary and several key deputies and economic advisors. It came the day after Republicans officially assumed control of the House and increased their numbers in the Senate. Daley, who served as commerce secretary for former President Bill Clinton, offers criteria Obama wants for the new environment in Washington: an outsider’s perspective, credibility with the business community, familiarity with the ways of the Cabinet and experience in navigating divided government. “I’m convinced that he’ll help us in our mission of

growing our economy and moving America forward,” Obama said. Daley made a pledge to the president: “This team will not let you down — nor the nation.” Daley replaces Pete Rouse, the interim chief of the last three months and a behind-the-scenes Obama advisor who did not want the position permanently and recommended Daley for it. Rouse, who received warm praise from Obama and sustained applause from staffers watching in the East Room, will remain as a counselor to the president, an elevated position from his former job as senior advisor. Daley was expected to start as chief of staff within the next couple of weeks. His brother, Richard Daley, is the mayor of Chicago, the post that Obama’s first chief of staff, Rahm Emanuel, left his job in October to seek. The Daley brothers are sons of Richard J. Daley, who was Chicago’s mayor from 1955 to his death in 1976. Although Chicago is also Obama’s hometown, the president has not had a close relationship with his new chief of staff. But Obama alluded to the Daley political legacy, joking that he “has a smidgen of awareness of how our system of government and politics works. You might say it is a genetic trait.” Daley will assume one of the most important and influential jobs in U.S. government as an advisor and gatekeeper to Obama. He will be thrust into the heart

of national politics just as Obama adapts to a new reality in Washington, with Republicans working to gut his signature healthcare law and pushing for major cuts in spending. Although Daley has not sought elective office himself, he has long been immersed in politics. He helped Clinton pass the North American Free Trade Agreement before joining his Cabinet. Later, he ran Al Gore’s 2000 presidential campaign and the historic recount effort that ended with Gore conceding the race to George W. Bush. When Obama launched his presidential campaign, the Daley family put aside its deep connections to Bill and Hillary Clinton and endorsed the young Illinois senator. Until then, Obama and the Daleys had largely operated separately in Illinois politics — not helping each other much but not attacking each other, either. After Obama’s victory, Daley helped oversee the presidential transition. Daley, a lawyer and banker, now serves as Midwest chairman of JPMorgan Chase. His appointment could raise questions about the White House’s closeness with Wall Street just as Obama is eager to enforce reforms that benefit the little guy. Liberal groups reacted negatively to the announcement, with calling it “troubling” because of Daley’s “close ties to the big banks and big business.” By contrast, the choice won praise from the U.S. Chamber of Commerce,

which Obama has recently begun to woo after clashes with business groups. The reactions underscored Obama’s determination to play to the middle as he ramps up for his reelection fight in 2012, even if it means alienating allies on the left. Daley laid out his political ideology last year upon joining the board of Third Way, a moderate Democratic think tank. “We must acknowledge that the left’s agenda has not won the support of a majority of Americans — and, based on that recognition, we must steer a more moderate course,” he said at the time. Obama is ushering in changes across his senior leadership — the result of internal staff fatigue, a need to shift energy and people to Obama’s re-election campaign, and an adaptation to the fresh limits on Obama’s power. Although many of the names of the players may not be familiar to the electorate, the collective personnel changes will influence not just Obama but the national agenda. White House press secretary Robert Gibbs announced Wednesday he was resigning by early February, senior advisor David Axelrod will be leaving soon, and both of Obama’s deputy chiefs of staff, Jim Messina and Mona Sutphen, are exiting soon, too. David Plouffe, a key member of Obama’s inner circle as his former presidential campaign manager, will be joining the senior staff of the White House on Monday.

Backers flock to see returned Iraqi cleric BY QASSIM ABDUL-ZAHRA Associated Press

NAJAF, Iraq — Hundreds of supporters on Thursday thronged the home of radical Shiite cleric Muqtada al Sadr, who has returned to Iraq after nearly four years in selfimposed exile in Iran. The firebrand populist whose militiamen battled U.S. and Iraqi forces left Iraq in 2007 seen more as a powerful but unpredictable leader of a street-fighting organization but returned Wednesday as a legitimate political figure heading an organized movement that is a key partner in Prime Minister Nouri al Maliki’s new government. A swarm of al Sadr’s bodyguards — dressed in black clothes and flak jackets and toting automatic rifles — deployed around his house in the al Hanana neighborhood in central Najaf where followers were waiting to meet him. One of the youngest among those gathered outside al Sadr’s house was nine-year-old Mohammed Sadiq, who was accompanied by his uncle. “I’d like to kiss


BACK HOME: Anti-U.S. cleric Muqtada al Sadr, center, is surrounded by supporters in Najaf, Iraq. his hands and tell him: I miss you and don’t leave us again,” said Sadiq. Supporters hung banners on nearby buildings, one of which read: “Yes, Yes to our leader. Here we are at your service our Master Muqtada.” Another banner said: “We renew our allegiance to our leader Muqtada al Sadr.” The cleric was believed to be meeting with Iraq’s most revered Shiite figure, the Grand Ayatollah Ali al Sistani, on Thursday but

the meeting could not be confirmed. Al Sadr has legions of followers among Iraq’s downtrodden Shiite masses who see him as a champion of their rights against both the Sunnis who dominated Iraq under Saddam Hussein and other Shiite political parties such as al Maliki’s Dawa party, which represents more of the Shiite middle class. Al Sadr has not been seen publicly in Iraq since 2007. He left to study Islam in

Qom, Iran, the seat of Shiite education. The sojourn was a way for the 37-year-old cleric to burnish his theological credentials at a time when he was sometimes criticized within Shiite religious circles for his relative religious inexperience. Al Sadr also faced an arrest warrant for his alleged role in assassinating a rival Shiite cleric. The arrest warrant appeared to be in effect as recently as March 2010 but the chances it would be enforced seem almost nonexistent considering the alliance between al Maliki and al Sadr. The public nature of al Sadr’s return — his first appearance in Iraq since leaving for Iran — suggested he had little to fear. While al Sadr’s homecoming was a cause for joy among his supporters, his return caused trepidation among many Iraqis, particularly Sunnis who remember vividly the sectarian killings carried out by his militia, the Mahdi Army, and believe he is a tool of Iran.

Egypt beefs up security for Coptic Christmas BY MAGGIE MICHAEL Associated Press

CAIRO — Egyptian authorities put up a heavy security cordon early Thursday around the main Coptic cathedral in Cairo hours before Christmas Eve Mass, using bomb-sniffing dogs, metal detectors and officers to try to prevent another attack like the New Year’s suicide bombing of a church that killed 21 people. Al Qaeda in Iraq had threatened Christians in Iraq and Egypt in the weeks leading up to the holidays, and militant websites have even posted online lists of churches in Egypt to target with their addresses. Egypt’s Coptic Christian minority, which makes up 10 percent of Egypt’s 80 million people, celebrates Christmas on Jan. 7. Some Christians have said they will skip Christmas Eve services for fear that there will be more attacks. Across the country, police

were preventing vehicles from parking near churches. They also planned to check identity cards of those entering churches and ban people from bringing in bags and pursues. Outside the Coptic cathedral in downtown Cairo, security officers with walkytalkies fanned out across the surrounding streets to keep an eye out for suspicious activity. In the southern province of Minya, a worker at a church found a small explosive device packed with nails and fireworks planted under the building’s stairs, a security official said, speaking on condition of anonymity because he was not authorized to brief the media. He said the device appeared to have been put there to “test security measures.” Several daily newspapers reported that Egypt’s Interior Ministry has asked church officials to prevent crowds from gathering in front of churches after Mass. The

request appeared aimed at avoiding the same sort of target hit in the Jan. 1 bombing in Alexandria — worshippers lingering outside of a church after a midnight service. On Wednesday, the ministry published a picture of an unidentified man whose head was found at the site of the Alexandria attack. A security official said that church officials could not identify the man, and presumed that he might be the attacker. But six days after the bombing, Egyptian authorities appear to have made little headway in their investigation. The perceived lack of progress has fanned fears among many Christians of possible repeat attacks. Those concerns have grown since several Coptic websites circulated statements allegedly posted on Islamic militant websites listing more than 40 other churches in Egypt and abroad as possible targets. The bombing of the Al-

exandria church, the worst act of sectarian violence in Egypt in a decade, touched off days of demonstrations and riots by the Christians blaming the government for encouraging discrimination and prejudice and not doing enough to protect them. In a gesture of solidarity with the country’s Coptic Christian minority, Egyptian activists have called on Muslims to form human shields in front of the churches on Christmas Eve. But in Alexandria, those still grieving the loss of family members killed in the Jan. 1 attack took little solace from the gesture. “If our brothers, the Muslims, come today we will not say ‘no’ . . . but why today?” said Roseanne Fawzy, whose father was killed in the church bombing. “If they think that this is to protect us, no, we don’t need protection. The church is protecting us, God is protecting us, not humans.”

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Mexican teen dies after border incident NOGALES, Ariz. — (AP) — A Mexican teenager who threw rocks at Border Patrol agents in the Arizona city of Nogales has died, but the manner of death is now in dispute. A Mexican official said 17-year-old Ramses Barron Torres died after he fell from a border fence and hit his head on a rock. But state police in Sonora, across the border from Arizona, said companions of Barron Torres claim he was shot by a U.S. Border Patrol agent. Calls to Border Patrol officials weren’t immediately returned. An FBI spokesman declined to release details of the investigation. Alejandro Palacios, a

spokesman for the neighboring Mexican city of Nogales, told the Associated Press on Wednesday that agents fired warning shots in the air after Barron Torres and other Mexican youths had illegally crossed the border. Palacios said the youths then threw rocks at agents but none of them were shot. He said Torres, who lived in the neighboring Mexican city, died after he landed on Mexico’s side of the fence. Sonoran police said Torres’ three companions left his body outside the emergency room of the General Hospital in Nogales on the Mexico side of the border at around 3 a.m. local time and then left in a vehicle with tinted windows.

Before the unidentified companions left, they told hospital guards that Barron Torres had been climbing a border wall to enter the United States when a Border Patrol agent fired a single shot that hit the teen. The state police statement said an autopsy determined the bullet had gone through Barron Torres’ right arm and entered his chest, puncturing a lung. While the victim’s body had numerous scrapes and bruises — apparently caused by falling onto a gravel pile on the Mexican side — Sonoran police said the autopsy determined that the bullet wound was the cause of death.

Examiner rules out parole for Puerto Rican nationalist BY BEN FOX Associated Press

SAN JUAN — A hearing examiner said this week he doesn’t believe a Puerto Rican nationalist who once turned down a clemency offer from former U.S. President Bill Clinton should be paroled after nearly 30 years in prison, the inmate’s lawyer said. Jan Susler, the lawyer for Oscar Lopez Rivera, said she will ask the U.S. Parole Commission to overrule the examiner’s recommendation, which came after a closed hearing at a federal prison in Terre Haute, Indiana. “We are extremely disappointed,” Susler said in a phone interview after the hearing. “There was no justice today.” Parole Commission officials are prohibited under the organization’s rules from discussing the case, even to confirm the examiner’s recommendation, said Johanna Markind, an assistant general counsel. They only release the final decision. Markind said hearing examiner Mark Tanner would

not be available for comment. “It is inappropriate for a hearing examiner to talk about an ongoing case.” Susler said that Tanner declared that Lopez’s crimes were too serious to allow release on parole and that he should remain behind bars until at least 2023. Lopez is serving a 55-year sentence for his conviction on seditious conspiracy, armed robbery and other crimes committed during a violent struggle for Puerto Rican independence. He belonged to the ultranationalist Armed Forces of National Liberation, which claimed responsibility for more than 100 bombings at public and commercial buildings during the 1970s and ‘80s in such U.S. cities as New York, Chicago and Washington, as well as in Puerto Rico. Few of the attacks caused injuries, but a bombing at New York’s landmark Fraunces Tavern in 1975 killed four people and injured more than 60 in a lunchtime crowd. A survivor of the tavern bombing and three relatives of victims testified at Wednesday’s hearing at the

prison, according to Susler, who opposed the testimony because Lopez wasn’t convicted of any direct role in the attack. “I feel their loss, I regret their loss. They’ve lived something that’s terrible, but they have nothing to offer in the case we are here to talk about today,” Susler said. “Oscar Lopez was never accused of anything related to Fraunces Tavern.” Clinton offered in 1999 to release Lopez and 13 other Puerto Rican nationalists as part of what was at the time a politically sensitive clemency deal. Lopez turned it down because two other comrades were not included in the offer and he vowed to serve out the remainder of his term. In the end, 12 nationalists were released under the deal and the two that Lopez wanted freed at the time have since been released. Now the 67-year-old Lopez wants his freedom as well. His brother Jose said he made the parole application, his first, largely so he can spend time with his family.



CALM AND PEACE: In Santa Marta slum of Rio de Janeiro, two years of police presence have brought improved security, utilities and investment. ‘Things are very good and improving,’ said Ze do Carmo, who runs a barber shop, seen above.

Social innovation project transforms Rio’s slums BY JULIANA BARBASSA Associated Press

RIO DE JANEIRO — At his barbershop carved into the steep flank of a Rio hillside slum, Jose do Carmo dos Santos used to cut the hair of the neighborhood’s drug dealers and of the addicts who walked up the narrow alleyways for a fix and stuck around for the $5 trims. His only request of the drug trade’s foot soldiers was that they not flash their assault rifles around the shop and scare away customers. Above all, Ze do Carmo, as he’s known in the Santa Marta shantytown, is a businessman. But then in 2008 police stormed Santa Marta to evict the dealers as the community became the pilot in a program to root out gangs and bring government services to slums long abandoned by the state. The program has since been replicated in a dozen slums, all in a bid to make one of the world’s more dangerous cities safer before the 2014 World Cup and the 2016 Olympics. The program has transformed the slums, bringing improved security, utilities and investment, and incorporating local businesses into the formal economy. But the changes also have driven up rents and increased bureaucracy, pushing many of the poorest residents further to the margins. For Ze do Carmo, the new, moneyed clients who are arriving in Santa Marta offer a chance to sell beer at a higher price from his barbershop at night, and to jack up rent in the six houses he owns from $180 to $300. “Things are very good and

improving,” said Ze do Carmo. “We’re integrating with the city in a way I’ve never seen. My clientele used to include a lot of addicts. Now I even get tourists who come up here to see the community and take advantage of our prices for a haircut.” Garbage collectors come by more frequently, although they still avoid the sheerest heights, where precariously perched shacks are accessible only after a strenuous hike. The utility company has started to install power cables to replace the thick, tangled mess of wires that brought pirated electricity to the community in unreliable spurts. Internet and cable companies are offering packages tailored to residents of the favelas, as the slums are known. The massive “bailes funk” — parties fueled by a bassheavy beat and, police say, by drugs provided by traffickers — have been banned. In their place, Santa Marta’s main square is hosting more sedate samba shows led by a band from the city’s affluent south side, where favela residents, paying $6, mix with middle-class youngsters who pay $18 for the music and the thrill of going into an area they wouldn’t have dared enter before. Antonia Carlos Gomes, who is raising twin 4-yearold girls alone on a hospital janitor’s salary, is considering moving to Santa Marta, which is within walking distance of a beach and public transportation. For $240 a month, she could move from her cramped apartment in a public housing building to a small house on the hillside shantytown and cut her rent in half.

Some, however, are less enamored with the changes. A survey by the state government showed real estate prices in some slums skyrocketed up to 400 percent after police took control and outsiders started eyeing the still-affordable living space. For lifelong resident Leidemar Barreto, who ekes out a living reselling clothes from her home to raise six children, government attention has meant higher rent and bills she can’t afford. “All these changes, the cable car to the top, safer streets, are good, but it’s been nothing but struggle for me,” she said. “I want to leave, but where can I go from here?” Integrating into the favela’s new economy and the city’s job market also is much harder for young people without much formal education. Some made good money supporting the drug traffic. Others simply had no chance to go to school in an area long abandoned by the state and now are being forced to compete. Peace in the slums can only be sustainable if these young people have access to training and jobs, said Wilson Risolia, head of the state’s education department. Still, the change in the slums since the programs were launched is visible. In Santa Marta, two years of police presence have eased the tension. Residents lead visitors around the once off-limits Santa Marta as they earn certification through a state program to be official city guides. Since August, when the program was launched, about 200 people a day visit the slum.

A love affair fades, as Mexico’s centuries-old organ grinders age • ORGANS, FROM 1A


Contractors have begun flooding a decommissioned U.S. Navy ship this week to sink it in the clear waters off the Cayman Islands, where officials hope the vessel will attract tourists and fish.

U.S., Cuba to hold immigration talks MATTHEW LEE Associated Press

WASHINGTON — Senior U.S. and Cuban officials will meet next week in a new round of immigration talks, the U.S. State Department said Thursday, even as the Obama administration continues to press for the release a detained U.S. aid contractor. Spokesman Mark Toner said U.S. and Cuban diplomats will meet in Havana on Jan. 12 to monitor adherence to a 17-year-old agreement under which the United States issues 20,000 visas to Cubans a year. They will discuss “policies and procedures that promote safe, legal and orderly migration,” he said.

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However, in the past, both sides have used the meeting to delve into more contentious issues, including U.S. criticism of Cuba’s human rights record and Cuban complaints about the 48-year U.S. trade embargo. In making the announcement, Toner repeated U.S. demands for Cuba to release jailed contractor Alan Gross, whom Cuba has accused of spying. Gross has been jailed for more than a year in Havana without charge. “We urge his immediate release so that he can return to his family,” Toner said. “We’re engaged with Cuba to promote safe, legal and orderly migration, and to

prevent the dangers and loss of life associated with illegal migration but the release of Alan Gross remains an important objective that we’ll continue to advance.” U.S. officials have made clear that there is little hope for improved relations while Cuba holds Gross. They have also continued to call on Cuban authorities to open up the island’s political system to democratic reform. Cuba insists that the United States drop the trade embargo and stop meddling in the island’s internal affairs. The Havana talks will mark the fourth round of immigration talks. The third round of immigration talks took place in Washington in June.

Sometimes they find a spot, only to be forced to relocate. “Public spaces are limited,” said Victor M. Maya, a spokesman for a group that calls itself Organ Grinders of Mexico. “When there are events, especially noisy ones like concerts, it becomes hard for us to make music. One alternative is to go on a route. We move to markets or public squares.” Oral history has it that at the end of the 19th century, the German government sent a gift to Porfirio Diaz, Mexico’s then-strongman ruler. It packed aboard a ship several Harmonipan players — wooden hand organs made in Berlin and painted with ornate designs or with lute-playing cherubim. At first, the hand organs were used in bourgeois parties. But years later, new hand organs were imported, and enterprising merchants deployed them in parks. Most of the organs bore the name of Frati, the Italian family who moved to Berlin and set up a factory to make the

organs, encased in oak and cedar with visible flute pipes, natty brass corner brackets and red velvet adornment. Organ grinders slowly transformed from novelty performers to an intrinsic part of the city. The fragile hand organs survived the 1910 Mexican Revolution. Under the seven-decade rule of the Institutional Revolutionary Party, which governed until 2000, guilds such as the ones formed by organ grinders received special treatment in exchange for unbending support for the PRI, the party’s Spanish initials. “We are all PRI-istas,” Odilon Jardines explained as he sat on a bench in central Mexico City one Sunday. Jardines came to the capital from Hidalgo state when he hadn’t yet reached his eighth birthday. For years, he earned his keep as a shoeshine boy, later getting a chance to become an assistant to an organ grinder. He eventually became a founder of the PRI-instituted Union of Organ Grinders, which he said still has

126 members. The PRI, he said, provided him and other organ grinders with khaki uniforms, healthcare and housing. The living was good enough for him to raise nine children. Once a leftist party took over Mexico City government from the PRI, the perks withered. City Hall still offers organ grinders licenses and the right to occupy public spaces. “The PRI came to an end and now they don’t give us anything,” Jardines said. “The left doesn’t like the unions.” With his melancholic tone, Jardines strikes an emotion often associated with Mexico’s hand organs. In a ballad to organ grinders, Javier Solis, the “King of the Bolero”, wrote the lyrics: Tear out bits of my soul with your notes/It doesn’t matter if the memory destroys my entrails/Just keep on playing, playing. Most hand organs are programmed with eight traditional melodies, at least two of them beloved songs, Cielito Lindo and Las Mananitas. Other ballads and waltzes can be programmed into each organ.

1/7/2011 4:23:50 AM






Gates announces $78B reduction in Pentagon budget BY ANNE FLAHERTY AND ANNE GEARAN Associated Press


ICONIC SPECIMEN: Shawn Dorsch, president of the Carolinas Aviation Museum, carries a poster announcing the future arrival of the remains of the U.S. Airways jet that crash landed safely on the Hudson River in 2009, to the Charlotte, N.C. museum. ‘It’s a fantastic piece of history,’ he said.

Sully’s plane headed for museum BY MITCH WEISS Associated Press

CHARLOTTE, N.C. — The U.S. Airways jet that made a near-miraculous landing on the Hudson River in 2009 will finally reach its destination, but as a museum piece rather than in service. The Carolinas Aviation Museum has almost completed an agreement to buy the damaged plane from the insurance company that owns it, museum president Shawn Dorsch said Wednesday. The museum is in Charlotte, which was the destination of U.S. Airways Flight 1549 until a flock of geese disabled the engines. Capt.

Chesley “Sully” Sullenberger glided it to a safe landing on the Hudson in New York City and all 155 passengers and crew members were rescued. Dorsch would not disclose the cost of the plane. The fuselage is in a New Jersey warehouse. Dorsch says he hopes to have the plane on exhibit by May. “It will be trucked down here and will be reassembled in the configuration it came out of the water,” he said. “And it will be reassembled as it came out of the water. So the artifact will be conserved as opposed to restored.” Dorsch said the Airbus

A320 will provide a boost to the museum, which attracts about 30,000 visitors a year — a number that could increase to more than 100,000 once the plane goes on display. The museum, which opened 19 years ago, has over 50 aircraft in its collection. “It’s a fantastic piece of history,” Dorsch said. “It has everything from the dents from the birds to the Coke cans and the food carts to the markings from the NTSB investigation on the aircraft. It’s just fascinating to walk around the aircraft. Except for the passengers’ belongings, it’s like a time capsule.” Dorsch said the project

began in 2010 during a trip to Japan. In a Japanese airport, he noticed a large exhibit honoring Flight 1549. “I realized that 1549 was not just an aviation icon, it was an internationally recognized aviation icon,” he said. So he contacted U.S. Airways and the project took off from there, Dorsch said. U.S. Airways helped put Dorsch in touch with the right people at the insurance company that owned the plane. U.S. Airways spokesman Derek Hanna said Wednesday the airline had no comment about the plane and was directing all calls to the Carolinas Aviation Museum.

WASHINGTON — U.S. Defense Secretary Robert Gates announced Thursday he will cut $78 billion from the Pentagon’s budget in the next five years — money that will come from shrinking the military’s ground force, increasing healthcare premiums for troops and other politically unpopular costsaving measures. The plan also identifies a separate $100 billion in savings, including the cancellation of a $14 billion amphibious Marine vehicle. However, the services will be allowed to reinvest that money in new weapon systems and programs that benefit troops, he said. The move is part of a broader effort to trim fat from the military’s mammoth half-trillion annual budget in light of the nation’s ballooning deficit. “We are not exempt from scrutiny and being asked to figure out what we are doing with less dollars,” Gates told reporters. But parts of the plan are likely to run into serious opposition from Congress. Lawmakers have fought past proposals to increase healthcare premiums and cut weapons programs that produce jobs in their states. At the same time, many newly elected lawmakers are tea party activists and antiwar Democrats say the Defense Department isn’t doing enough to scale back. The Defense Department

represents the largest portion of the federal government’s discretionary budget. The final plan calls for $553 billion spent in 2012 — $13 billion less than the Pentagon wanted, but still representing 3 percent in real growth. “Those who feel we’ve gone too far and those who feel we’ve gone far enough,” Gates said. “My view is we’ve got it about right.” Adm. Michael Mullen, chairman of the Joint Chiefs of Staff, said he and the service chiefs are fully supportive of the plan. Under pressure to rein in deficit spending, the White House has told the Defense Department it must cut $78 billion from its budget plan covering 2012 through 2016. Gates agreed, but insisted that topline reductions not happen until 2015 when presumably the war in Afghanistan will end. Afghanistan’s President Hamid Karzai has said that it plans to take control of security in its country by the end of 2014. After that, the plan would be to let go of 27,000 Army soldiers and up to 20,000 Marines to save as much as $6 billion. Mullen called the reduction in force size modest and “well within the risk envelope.” Gates said he expects to save some $7 billion by reforming the military’s health care system known as Tricare, including an increase to premiums paid by military families.

Horsemen rally to revive horse slaughter U.S. tries Iraqi accused of spying BY CRISTINA SILVA Associated Press

BY ED WHITE Associated Press

DETROIT — A former U.S. military translator accused of conspiring to help the regime of fallen dictator Saddam Hussein of Iraq, simply passed along benign information in the 1990s about Iraqi Christians in the United States, a defense lawyer told jurors on the first full day of trial. I s s a m Hamama, 60, is charged with conspiring to act as an unregistered agent and making false state- HAMAMA ments to investigators. Hamama, an Iraqi native who left that country in 1979, was identified as agent 6,129 in documents seized by the U.S. government after Hussein’s fall in 2003. Hamama applied to become a U.S. translator in Iraq that same year and declared he had never had contact with foreign governments. Defense attorney Haytham Faraj acknowledged Hamama had contact in the 1990s with Iraqi officials stationed in the United States. “Mr. Hamama believed they were diplomats,” not Iraqi intelligence agents, Faraj told jurors. “Now he finds himself in this terrible nightmare.” Hamama is a natural-

ized U.S. citizen and Iraqi Christian who lived among other Chaldeans in Sterling Heights, a Detroit suburb, before moving to California. The first trial witness was Robert Smego, an expert in translating Arabic, who said Hamama’s secret identity, 6129, showed up “numerous times” in Iraqi records in Baghdad. Hamama was described in a handwritten document as a “collaborator” who supplies good information on “hostile activity” in the United States, Smego testified. The indictment accuses him of traveling to Washington and Iraq to talk to his handlers. There is no allegation that he aided the enemy while serving as a U.S. military translator. In fact, Faraj said he will present witnesses who will praise Hamama’s service. He was arrested in 2008 while working for the United States. “He was on the inside with Army units and had opportunity to do great harm. You know what? He protected them,” Faraj told jurors. Hamama is not the first Iraqi native to be charged because of documents found in Baghdad. In 2009, Najib Shemami of Sterling Heights was sentenced to nearly four years in prison for supplying information to Iraq before the U.S.-led invasion in 2003. He was described in records as “our good cooperating source.”

LAS VEGAS — Horses should be slaughtered, processed and sold as food to other countries that regularly consume the lean, tender meat, speakers said Wednesday at a conference aimed at reviving the United States’ unpopular horse processing industry. Horses, traditionally regarded in the United States as companions or distinguished beasts, have been elevated to a position where they mistakenly are no longer treated as livestock ripe for consumption, argued slaughter proponents at the first Summit of the Horse conference. Not eating the animals, in fact, disregards the food chain’s natural cycle that sustains all creatures, said Sue Wallis, vice president of the United Horseman group of Wyoming, which organized the conference. “It’s not intuitive,” Wallis said of the country’s ban on horse processing. The consumption of horses has long been taboo in the United States, where cows, pigs and chickens are considered the protein of choice. Only three horse slaughterhouses remained in the country in 2007, when complaints over inhumane slayings and unsafe conditions prompted Congress to effectively ban horse processing. Animal rights groups claim there is no humane way to slaughter horses because of the animals’ shape and sensitivity to smells and sounds. They

want Congress to outlaw any exchanges that could lead to horse slaughters, including the sale of the animals to overseas processing plants. “The industries that existed never were able to find a way to do it in a humane way,” said Keith Bane, director of equine protection for the Humane Society of the U.S. But slaughter proponents say animal rights groups are pushing romantic notions of a noble beast that once defined the untamed West. Horses, they say, are no different from lambs, cows, pigs or other animals treated as food. Proponents hope the summit — attended by hundreds of ranchers, breeders and lawmakers — will draw attention to an untapped economic resource. Reopening horse slaughterhouses would create jobs and increase the market value of an animal whose sale price has plummeted in recent years, they say. Conference participants are spending three days discussing how to debate animal rights groups, humane horse slaughter methods, and the devastation wrought by uncontrolled populations of wild horses that compete with other species for water and forage. Horse meat remains a dietary staple in Japan, China, France, Belgium, German and Mexico. But the United States’ stomach for horse meat largely disappeared after World War II, when the consumption of Black Beauty’s brethren fell out of fashion. James Ahern, an agribusi-

ness professor at California Polytechnic State University, San Luis Obispo, found fewer than 1 percent of horses in the United States — or roughly 100,000 — were sent to slaughterhouses each year before the federal ban. Ahern was part of an academic study commissioned by horse slaughter proponents before the 2007 ban that warned the value of horses would drop if the United States barred horse processing, a $26 million-ayear industry. He said horses traded for 40 cents a pound before the ban. Now, it can cost $2,500 to legally dispose of a dead horse. Slaughter advocates claim unwanted horses are agitating the nation’s already overpopulated horse supply. The Bureau of Land Management oversees more than

38,000 wild horses and burros in 10 western states. Another nearly 38,000 are in holding facilities in Kansas, Oklahoma and South Dakota. The cost of the federal horse management program rose from about $37 million in 2004 to $66 million in 2010. The soaring expense is in many ways tied to recent years of economic stress, in which families have been unable or unwilling to adopt wild or abandoned horses as frequently as they did in the past. More than 12,700 horses were adopted from the federal government in 1987, but fewer than 4,000 horses were adopted in 2009. Slaughter proponents say the federal ban contributes to the adoption tensions because it increases competition for homes by creating more unwanted horses.


BURDEN? Slaughter advocates claim unwanted horses are agitating the United States’ already overpopulated horse supply.

Polygamist sect leader Jeffs fires his new attorney, causing delay in trial BY WILL WEISSERT Associated Press

SAN ANGELO, Texas — Polygamist sect leader Warren Jeffs fired his attorney just hours after hiring him, prompting a judge to delay a trial on sexual assault charges after Jeffs said he would need more time to find a lawyer who “suits my needs.” Gerry Morris, a prominent Austin-based lawyer, told district court Judge Barbara Walther during a morning

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pretrial hearing that he would represent Jeffs as long as a trial on sexual assault charges set to begin Jan. 21 was pushed back to give him time to prepare. But in a subsequent late-afternoon hearing, Morris said Jeffs had “discharged” him. He did not elaborate and said after the hearing that he could not comment. Jeffs, the ecclesiastical head of the Fundamentalist Church of Jesus Christ of Latter Day Saints, is accused

of aggravated sexual assault, sexual assault and bigamy. Prosecutors say Jeffs had sex with two children, one under age 14 and the other under age 17, and re-arraigned Jeffs during the earlier hearing so that all counts of sexual assault could be heard in a single trial — with a separate trial to be held in the bigamy case. After Morris said he would not represent Jeffs, Walther turned to the defendant and said “Mr. Jeffs, what

do you propose to do?” After a long pause, state prosecutor Eric Nichols stood up and said Jeffs was using an apparent “strategy for more time” but that he had been unwilling even to sign a waiver that would have allowed prosecutors to delay the start of his first trial. Nichols then proposed that the trial for aggravated sexual assault and sexual assault be pushed back until Feb. 21 and that the bigamy

case remain slated to start March 14. The 55-year-old Jeffs stared into space, then addressed the court slowly and deliberately for several minutes. “I just ask you,” Jeffs said, before pausing at length, “to allow me a little more time in finding counsel that suits the needs I have, as I will proceed hastily with help from those who understand my needs.” Jeffs continued that he was

“not attempting to hinder, in any way, the proceedings, only requesting an additional opportunity to accomplish what is needed in determining representation more suitable.” Walther granted Nichols’ motion and appointed attorney Fred Brigman to serve as Jeffs’ standby counsel. Nichols said the state would proceed with discovery and provide Brigman access to evidence. Another pretrial hearing is set for Jan. 31.

1/7/2011 4:04:21 AM






U.N. notes sharp rise in world food prices BY WILLIAM NEUMAN New York Times Service

World food prices continued to rise sharply in December, bringing them close to the crisis levels that provoked shortages and riots in poor countries three years ago, according to newly released United Nations data. Prices are expected to remain high this year, prompting concern that the world may be approaching another crisis, although economists

cautioned that many factors, like adequate stockpiles of key grains, could prevent a serious problem. The United Nations data measures commodity prices on the world export market. Those are generally far removed from supermarket prices in wealthy countries like the United States. Food price inflation in the United States, has been relatively tame, and prices are forecast to rise only 2 percent to

3 percent this year. But the situation is often different in poor countries that rely more heavily on imports. The food price index of the United Nations Food and Agriculture Organization rose 32 percent from June to December, according to the report published Wednesday. In December, the index was slightly higher than it was in June 2008, its previous peak. The index is not adjusted for inflation, however, making

an exact comparison over time difficult. The global index was pushed up in 2010 by rising prices for cooking oils, grains, sugar and meat, all of which could continue to remain high or rise. “We are at a very high level,” said Abdolreza Abbassian, an economist for the organization, which is based in Rome. “These levels in the previous episode led to problems and riots across the world.”

Abbassian said that bad weather affecting commodity crops in many exporting countries might help keep prices high over the next several months. Grain prices have a much greater impact on the food budgets of people in poor countries than prices for commodities like sugar or meat, which tend to make up a much smaller portion of their diet. In addition, global supplies of rice and wheat are

Ivory Coast leader’s rival still blockaded BY ADAM NOSSITER New York Times Service

ABIDJAN, Ivory Coast — Laundry hangs from balconies, beer bottles remain in the lobby, officials emerge unshaven from darkened corridors after lengthy but inconclusive meetings and a tent city full of T-shirted U.N. soldiers has sprung up on the steamy grounds of this hotel. Armed men of various designations — including rebel soldiers from the north, private security agents and international troops tasked with protecting the hotel — stroll the halls. Meanwhile, in the city outside these walls, newspapers controlled by the nation’s strongman mock the hotel on a daily basis as the ineffectual “Republic of the Golf.” This is the Hotel du Golf, the alternate seat of government of this West African nation. For weeks, this shabby resort on a filthy lagoon has been the headquarters of Alassane Ouattara, the man who governments around the world say defeated the incumbent, Laurent Gbagbo, in a presidential election Nov. 28. But it remains blockaded, even after West African diplomats announced this week that they had received promises from Gbagbo to lift a three-week siege of this increasingly disheveledlooking hotel. Under mounting international pressure to step down and cede the real presidential palace to Ouattara, Gbagbo had promised to remove

Associated Press

WASHINGTON — Poland is asking the United States to help fund dissidents in Belarus following a widely condemned election and a crackdown on dissent. In an interview, Poland’s Ambassador Robert Kupiecki compared the struggle of democratic activists in Belarus to his country’s solidarity movement under communist rule. He urged the United States to match the support Polish dissidents received during the Cold War.

Greece considers floating jails for illegal migrants BY NICHOLAS PAPHITIS Associated Press


UNDER SEIGE: U.S. tents line the waterfront at the Golf Hotel in Abidjan, Ivory Coast, on Tuesday. Alassane Ouattara, recognized as the country’s elected leader, is attempting to govern from this hotel, where he and his staff are barricaded behind sandbags and coils of razor wire. barricades from roads leading to the hotel, the regional alliance of African nations, ECOWAS, said. The pledge was supposedly part of Gbagbo’s effort to end the electoral standoff peacefully, ECOWAS said, and there were no conditions attached to it. The alliance has threatened to use military force against Gbagbo if he does not give up power

voluntarily. But Wednesday, the gun-twirling soldiers and the makeshift barricades on hilly roads leading to the hotel remained in place. The roads themselves were empty of traffic. And Gbagbo’s associates made statements suggesting that lifting the blockade that has hemmed in Ouattara was not going to be so simple after all. “The blockade will be lift-

ed if the rebel forces quit the Hotel du Golf,” Allen Toussaint, a counselor to Gbagbo, said in a phone interview. “They have heavy weapons. They need to clear out of there. It’s become a military training camp. The rebels need to leave, and Ouattara needs to go home.” Analysts said there was little chance of either happening and noted that in the

past Gbagbo, who has clung to power for five years after the expiration of his legal term, often appeared to make concessions, only to reverse course soon after. He is known here in Abidjan as “Le Boulanger,” the baker, for his propensity to roll his opponents in flour — a halfadmiring symbolic description of his persistent ability to stymie opponents.

Poland calling on U.S. to aid Belarus dissidents BY DESMOND BUTLER

much more robust today than during the crisis. But ensuring sufficient grain supplies depends on good harvests this year in major exporting countries. Dry conditions in Argentina that could hurt corn and soybean crops are worrisome, Abbassian said. Heavy rains in Australia delayed the wheat harvest there, resulting in a poorer crop. In the United States, harsh, dry weather is expected to hurt the winter wheat crop.

“What also comes to mind is the role that Western free institutions played in bringing about freedom to Poland,” he said. “And this is why Belarus needs our solidarity today.” He says that Poland will be inviting other countries, including the United States, to a donors conference in Warsaw early in February aimed at raising money for the opponents of Belarus’ President Alexander Lukashenko and Democratic activists that Poland has long supported. “We expect political and

democratic pressure on the Belarusian authorities,” he said. “This means all forms of support for democratic society to direct help for those brave people in Belarus who have the courage to oppose the oppressive government.” The United States and other Western countries have called Belarus’ elections in December illegitimate and condemned the crackdown on Lukashenko opponents. More than 700 people, including seven candidates who ran against Lukashenko, were arrested after the voting, most

of them at a massive demonstration protesting alleged vote fraud. Belarus also ordered the closure of the local mission of the Organization for Security and Cooperation in Europe, whose monitors strongly criticized the election as unfair. The State Department’s top official on Europe, U.S. Assistant Secretary of State Philip Gordon said in an interview Wednesday that the U.S. is considering how to respond to the developments in Belarus. “We are actively looking at

all of our options, including additional sanctions,” he said. In 2010, U.S. agencies provided $11 million for democracy promotion in Belarus. That included $1.4 million for training political parties through non-governmental organizations and U.S. funded groups, such as the International Republican Institute. Poland has doubled its aid to independent groups and media in Belarus to $14 million. It is unclear how much influence Western countries have on Lukashenko.

ATHENS — Greece is considering the use of floating prisons to detain asylum seekers — the latest drastic measure being considered in a crackdown on illegal immigration. Public Order Minister Christos Papoutsis said that the leasing of floating detention centers for illegal immigrants is being considered as part of other measures. “But we must review difficulties . . . that include the high cost of the transfer of such a vessel and various docking issues.” The measures are likely to include building a fence on part of the Greek-Turkish border and using old army facilities as detention centers. The Netherlands began using floating facilities, officially called “detention platforms,” in 2007, according to rights group Amnesty International. The government did not comment on a newspaper report that Greek officials are due to visit to the Netherlands to discuss the feasibility of transferring purposebuilt prison ships to Greece. Greece says about 128,000 immigrants entered the country illegally in 2010 — the highest number in the European Union. The country’s largest civil servant union, Adedy, said Wednesday it would join in a planned rally against the proposed border fence on Jan. 15. The rally is organized by left-wing protest groups and immigrant organizations. “We urge the government to take back this plan; it is racist and unacceptable,” said protest organizer Petros Constantinou. “Our borders should be open to refugees and the oppressed.” Constantinou urged the government to overhaul strict asylum rules, under which more than 99 percent of all applications for refugee status are currently rejected.

China’s push to modernize its once-creaky military begins to bear fruit BY MICHAEL WINES AND EDWARD WONG New York Times Service

BEIJING — U.S. Secretary of Defense Robert Gates, on a mission to resuscitate military relations with China, will not arrive in Beijing for talks with the nation’s top military leaders until Sunday. But at an airfield in Chengdu, a metropolis in the nation’s center, China’s military leaders have already rolled out a welcome for him. It is the J-20, a radar-evading jet fighter that has the same two angled tail fins that are the trademark of the Pentagon’s own stealth fighter, the F-22 Raptor. After years of top-secret development, the jet — China’s first stealth plane — was put through what appear to be preliminary, but also very public, tests this week on the runway of the Aviation Design Institute in Chengdu, a site so open that aircraft enthusiasts often gather there to snap photos of their favorites. Some analysts say the timing is no coincidence.

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MILITARY MIGHT: After years of top-secret development China’s first J-20 stealth plane was put through preliminary tests in Chengdu this week. “This is their new policy of deterrence,” Andrei Chang, the Hong Kong editor in chief of the Canadian journal Kanwa Defense Weekly, said in a telephone interview Wednesday. “They want to show the U.S., show Mr. Gates, their muscle.” These days, there is more

muscle to show. A decade of aggressive modernization of China’s once-creaky military is beginning to bear fruit, and both the Pentagon and China’s Asian neighbors are increasingly taking notice. By most accounts, China remains a generation or more behind the United States in

military technology and even further behind in deploying battle-tested versions of its most sophisticated naval and air capabilities. But after years of denials that it has any intention of becoming a peer military power of the United States, it is now unveiling capabilities that suggest it intends, sooner or later, to be able to challenge U.S. forces in the Pacific. Besides the J-20, a midairrefuelable, missile-capable jet designed to fly far beyond Chinese borders, the Chinese are reported to be refitting a Soviet-era Russian aircraft carrier — China’s first such power-projecting ship — for deployment as soon as next year. Two other 50,000-tonplus carriers are being built from scratch in a Shanghai shipyard. The first is said to be scheduled for launching by 2014; several more could come by 2020, Pentagon experts say. The military’s nuclear deterrent, estimated by experts at no more than 160 warheads, has been redeployed since 2008 onto mo-

bile launchers and advanced submarines that no longer are sitting ducks for attackers. Multiple-warhead missiles are widely presumed to come next. China’s 60-boat submarine fleet, already Asia’s largest, is being refurbished with super-quiet nuclear-powered vessels and a second generation of ballistic-missileequipped subs. And a widely anticipated antiship ballistic missile, called a “carrierkiller” for its potential to strike the big carriers at the heart of the U.S. naval presence in the Pacific, appears to be approaching deployment. The head of the United States’ Pacific Command, Adm. Robert F. Willard, told a Japanese newspaper in December that the weapon had reached “initial operational capability,” an important benchmark. Navy officials said later that the Chinese had a working design but that it apparently had yet to be tested over water. On that and other weap-

onry, China’s clear message nevertheless is that its ability to deter others from territory it owns, or claims to own, is growing fast. China, of course, has its own rationales for its military buildup. A common theme is that potentially offensive weapons like aircraft carriers, antiship missiles and stealth fighters are needed to enforce claims to Taiwan, should leaders there seek legal independence from the mainland. Taiwan’s current status, governed separately but claimed by China as part of its sovereign territory, is maintained in part by a U.S. commitment to defend it, should Beijing launch an attack. Chinese officials also clearly worry that the United States plans to ring China with military alliances to contain Beijing’s ambitions for power and influence. In that view, the Pentagon’s longterm strategy is to cement in Central Asia the sorts of partnerships it has built on China’s eastern flank in South Korea, Japan and Taiwan.

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Critical silence on human rights Human Rights Watch had concluded that “what we are seeing in Bahrain these n a speech to the U.N. General days is a return to full-blown Assembly in September 2010, authoritarianism.” U.S. President Barack Obama sugClinton’s regested that his administration’s nosponse? Extravatoriously weak defense of human gant and virtually rights around the world would be unqualified praise invigorated. “We will call out those for Bahrain’s ruling who suppress ideas and serve as a al Khalifa family. “I voice for those who are voiceless,” am very impressed he said. He went on to urge other by the progress that democracies: “Don’t stand idly by, Bahrain is making DIEHL don’t be silent, when dissidents on all fronts — ecoelsewhere are imprisoned and pro- nomically, politically, socially,” she testers are beaten.” declared as she opened a town hall Just over two months later, Sec- meeting. Her paeans to Bahrain’s retary of State Hillary Clinton vis- “commitment to democracy” conited Bahrain, an important Persian tinued until a member of parliament Gulf ally that hosts the U.S. Fifth managed to gain access to the miFleet. The emirate was in the midst crophone and asked for a response of a major crackdown on its opposi- to the fact that “many people are tion. arrested, lawyers and human rights Two dozen dissidents, including activists.” intellectuals, clerics and a promiClinton’s condescending reply nent blogger, had been rounded up, was a pure apology for the regime. charged under anti-terrorism laws “It’s easy to be focused internally and allegedly tortured. A human and see the glass as half empty. I see rights group that had received U.S. the glass as half full,” she said. “Yes, funding was taken over by the gov- I mean people are arrested and peoernment. ple should have due process . . . but


Washington Post Service


on the other hand the election was widely validated . . . So you have to look at the entire picture.” So much for a fresh start on human rights. Clinton’s Bahrain visit reflected what seems to be an intractable piece of the Obama administration’s character: a deeply ingrained resistance to the notion that the United States should publicly shame authoritarian regimes or stand up for the dissidents they persecute. Yes, Obama made a public statement the day an empty chair represented Chinese dissident Liu Xiaobo at the Nobel Peace Prize ceremony, and both he and Clinton issued statements last week when Russia’s best-known political prisoner, Mikhail Khodorkovsky, was convicted on blatantly trumpedup charges. But in all sorts of less prominent places and cases, the U.S. voice remains positively timid — or not heard at all. After Egypt’s terrible elections in November, in which ballot boxes were blatantly stuffed and the opposition brutally suppressed, the administration’s commentary was limited to bland statements issued

by “the office of the press secretary” at State and the spokesman of the National Security Council. Three weeks earlier, at a widely watched joint press conference in Washington with Egypt’s foreign minister, Clinton made no mention of the elections, the crackdown or anything else related to human rights. In Latin America, friends of the United States marvel at its passivity as Hugo Chavez and Daniel Ortega systematically crush civil society organizations and independent media. “I don’t see a clear policy,” Venezuelan opposition leader Leopoldo Lopez — a good example of the sort of dissident Obama promised to defend — told me. When the administration touts its record it often focuses on the declarations it has engineered by multilateral forums, such as the U.N. Human Rights Council. The ideology behind this is that the United States is better off working through such bodies than acting on its own. The problem is that, in practice, this is not true. Set aside for the moment the fact that the U.N. council is dominated by human rights abusers

who devote most of the agenda to condemnations of Israel. Who has heard what the council said about, say, the recent events in Belarus? The obvious answer: far fewer people than would have noticed if the same critique came from Obama or Clinton. Back to Bahrain for a moment. The “entire picture” Clinton referred to is that virtually no one, outside the Bahraini royal family and the State Department, shared her judgment that the parliamentary election was “free and fair.” The dissidents are still on trial; their defense lawyers resigned en masse last December because of the court’s refusal to consider any of their motions. Recently, Human Rights Watch spoke up again on behalf of Nabeel Rajab, the president of the Bahrain Center for Human Rights, who has been repeatedly harassed by security forces, prevented from traveling and called a terrorist by the state news agency. Has the Obama administration spoken up for this relatively obscure and “voiceless” dissident? Of course not.


Our man in Caracas resident Hugo Chavez of Venezuela celebrated the holidays with a flurry of autocracy. With opposition members due to take 40 percent of the seats in a new Congress this week, the populist strongman induced the outgoing legislature — a rubber stamp for his initiatives — to grant him the power to rule by decree for the next 18 months. The lame-duck session also approved laws to censor the Internet, ban foreign contributions to human rights groups, and make it easier for the government to nationalize banks and shut TV stations. Venezuela’s opposition described Chavez’s offensive as a final “coup” against the country’s tattered democratic system. The State Department, too, criticized the measures; its spokesman said Chavez “seems to be finding new and creative ways to justify autocratic powers.” So how will the Obama administration respond? It will, it seems, seek to send a new U.S. ambassador to Caracas — and thereby hand the caudillo a considerable propaganda victory. Some background is in order. In 2010 Obama nominated a veteran diplomat, Larry Leon Palmer, for the Caracas post. But Chavez rejected the would-be ambassador because, in written responses to questions from the Senate Foreign Relations Committee, Palmer frankly referred to “clear ties between members of the Venezuelan government and


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Colombian guerrillas” and “morale and equipment problems” in the Venezuelan army. The State Department vowed to stand behind Palmer. When Chavez reiterated that he would not accept the envoy, the administration promised “consequences.” Those turned out to be mild: In the quiet of last week, the department confirmed that it had canceled the visa of Venezuela’s ambassador to Washington while he was out of the country. That pleased Chavez, who according to one of the newspapers he controls was convinced that the department’s decision not to publicly expel his ambassador was “a good signal.” Last Sunday more signals when Chavez and U.S. Secretary of State Hillary Clinton met at the inauguration of Brazil’s new president. After shaking hands, Chavez told Clinton, according to the government paper, that he was ready to set aside the dispute over ambassadors, provided the Obama administration “corrects its mistake.” On Monday, State Department spokesman P.J. Crowley suggested the administration was ready to give in. Saying that Palmer’s nomination had “formally expired with the end of the last Congress,” he added, “We will have to renominate an ambassador candidate.” Venezuelans who were wondering if the United States would do anything to support the opposition parties, human rights activists, independent media and private businesses under Chavez’s assault then heard the following message from Crowley: “We are interested in having good relations with Venezuela. And obviously that involves, among other things, having ambassadors at post who can help to, you know, manage that engagement.” That raises an interesting question: Will the next nominee speak truthfully about Chavez’s destruction of democracy, and about his ties to terrorists and drug traffickers? Let’s hope Congress provides him or her with that opportunity.

Down the nuclear rabbit hole BY CATHERINE COLLINS AND DOUGLAS FRANTZ Los Angeles Times Service

even years after the U.S. government proclaimed victory over the rogue Pakistani scientist A.Q. Khan, the seeds of catastrophe he sowed are still sprouting worldwide. Iran’s march toward an atomic bomb? We have Khan’s nuclear trafficking network to thank. North Korea’s continuing development of nuclear weapons? Again, Khan’s doing. Despite putting the world’s most dangerous weapons in the hands of the world’s most dangerous regimes, not one participant in Khan’s network is in jail today. Even the mastermind himself, too powerful for his own government to imprison, was allowed the comfort of house arrest, and now even that has ended. Instead of a strong message of deterrence, shutting down the atomic bazaar resulted in an unseemly mercy for its perpetrators and a new form of cyber proliferation. By its nature, nuclear trafficking crosses borders. Combating this danger requires international cooperation. Yet at every turn in tracking the Khan network from Pakistan to Iran, North Korea and Libya, national interests trumped counter-proliferation objectives. Decisions by policymakers and intelligence officials in several nations created a calculus in which selling the means to wipe out a city carried less risk of severe punishment than robbing the neighborhood convenience store. The worst scofflaw was our own Central Intelligence Agency, aided and abetted by senior officials in the George W. Bush administration. Together, they advocated obstructionism masquerading as prudence, blocking prosecutions and orchestrating the destruction of evidence detailing the full extent of the damage to our security by the Khan network.


Khan’s indulgent treatment is well known. Less attention has been paid to the leniency granted his collaborators. None spent more than 4 years in prison; most served far less. The logistics chief, B.S.A. Tahir, was arrested by Malaysian authorities in late 2003, but he was never charged and walked free in June 2008. Tahir might have helped put a number of his associates behind bars, but the Malaysians refused to let him testify in Germany and South Africa. Similarly, German and South African prosecutors squabbled over evidence and witnesses, leading to light or suspended sentences for four ring members in those countries. But the most flagrant effort to undermine prosecutions was a four-year campaign by the U.S. government to kill a Swiss investigation of the network. Interviews and previously undisclosed documents we reviewed in writing our new book provided a chilling portrait of U.S. bullying at the highest levels to block a criminal inquiry of three Swiss citizens who were part of Khan’s global enterprise: engineer Friedrich Tinner and his sons, Marco and Urs. The United States stonewalled Swiss requests for help and then pressured them into destroying a staggering quantity of evidence. Senior CIA and Bush administration officials argued that stopping the Tinner inquiry and destroying the evidence was necessary to protect U.S. intelligence operations and keep nuclear information away from terrorists. But our research uncovered more sinister motives. For one, according to confidential documents, the CIA had paid the Tinners huge sums and wanted to protect their role in bringing down Khan. The CIA also wanted to stop Swiss plans, documented in a parliamentary commission report, to prosecute six of its officers who violated Swiss law by recruiting the Tinners and improperly

searching their homes and offices. More important, preserving Bush’s claim that shutting down Khan was a major intelligence victory meant suppressing the disclosure of the real volume of nuclear secrets the network had put on the open market — much of it after the CIA penetrated the ring. In February 2008, documents show, the Swiss succumbed to U.S. pressure and destroyed a huge cache of evidence seized from the Tinners. Among the material shredded, crushed and incinerated under CIA supervision were plans for two nuclear warheads from Pakistan’s arsenal, blueprints for uranium enrichment plants and producing nuclear weapons, and decades of records detailing network transactions. For the last 2 years, a dogged Swiss magistrate has been reassembling fragments of the evidence case, and he recently recommended charging the Tinners. But the case against the CIA agents has gone up in smoke, as has the road map to outposts in the Khan network that remain undiscovered today. The destruction was not only wrong, it was too late. Long before the Swiss seized the cache from the Tinners, the warhead plans and other designs had been transferred to digital formats, easily sent to any computer. Copies were found in Thailand, Malaysia and South Africa; no one is sure where else they may have gone in what we regard as the world’s first example of cyber proliferation. The lesson here is clear: Leaders must set aside national interests and work cooperatively to stay ahead of nuclear traffickers. United Nations’ efforts on this front have yielded poor results. What’s needed is a new multilateral legal regime that puts trafficking in nuclear, chemical and biological weapons on a par with crimes against humanity. This won’t be easy, but blind adherence to narrow national objectives increases the risk to all of us.

1/7/2011 4:26:17 AM







UP FOR GRABS: At left, a portrait of Mao Zedong by Andy Warhol is seen with two bullet holes put there by Easy Rider star Dennis Hopper. The screenprint will be sold by Hopper’s estate during a two-day auction of his collection at Christie’s next week. At right is a 1990 portrait of Hopper by photographer Victor Skrebenski. The photograph will also be sold during the auction.

Dennis Hopper art collection up for auction in NYC BY ULA ILNYTZKY Associated Press

NEW YORK — Dennis Hopper shot two bullet holes through an Andy Warhol portrait of Mao Zedong, but instead of getting mad, Warhol called the Easy Rider star a collaborator. Warhol’s Mao is among 300 works of fine art and memorabilia owned by the late actordirector of the 1969 counterculture film up for auction at Christie’s next week. The 1972 colored screenprint is expected to bring $20,000 to $30,000. Most of the items adorned the actor’s Venice Beach, Calif., home. Hopper, who was twice nominated for Oscars and earned a star in 2010 on the Hollywood Walk of Fame, died of prostate cancer at his home last May. He was 74. The actor/director was already stricken with cancer when he at-

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tended the ceremony for the unveiling of his commemorative star. The framed plaque of the star that Hopper received as a memento of the event is being sold next week for an estimated $1,000 to $1,500. Hopper began collecting in the 1960s after the venerable actor, Vincent Price, himself an avid collector of impressionist art, told him: “You need to collect, this is where you need to put your money,” said Cathy Elkies, Christie’s director of iconic collections. “This really was his calling.” Hopper, a photographer and painter himself, became immersed in the West Coast artist scene and pop art movement, becoming close friends with Warhol, Roy Lichtenstein and many of the other artists he collected. While eclectic, “there is some

depth of certain artists” among the fine art works in the collection, including those by Wallace Berman, Bruce Conner and George Herms. Conner’s Picnic on the Grass and Warhol’s Mao are the highest priced items in the sale. Picnic on the Grass also is expected to bring between $20,000 to $30,000. The shooting incident involving Mao occurred sometime in the early 1970s at Hopper’s Los Angeles home, said Alex Hitz, a family friend and a trustee of the estate. “One night in the shadows, Dennis, out of the corner of his eyes, saw the Mao and he was so spooked by it that he got up and shot at it, twice, putting two bullet holes in it,” Hitz told The Associated Press in a telephone interview from Los Angeles. “Andy saw it, loved it and annotated those holes” labeling

them “warning shot” and “bullet hole.” Hopper’s four children are selling the collection because “it was Dennis’ wish to sell everything,” said Hitz. “How do you cut a Warhol and all those other wonderful pieces by four,” he added. Elkies said Hopper’s Venice Beach house was filled “literally from floor to ceiling with art, and realistically they [the children] couldn’t take that on.” She said the family was holding on to the more sentimental pieces, including Hopper’s own photography and paintings. Posters from the movies he starred in, including Apocalypse Now, Blue Velvet and Speed, are estimated to sell for $200 to $500. A 158-page unbound Easy Rider script, with extensive handwritten notes on the back of two pages is being offered at a pre-sale esti-

mate of $2,000-$3,000. A threesheet poster from the film, which also starred the then unknown actor Jack Nicholson, is estimated at $1,000-$1,500. Hopper costarred with Peter Fonda in Easy Rider, about two pot-smoking, drug-dealing hippies on a cross-country motorcycle trip. It netted a bestscreenplay Oscar nomination for Hopper, Fonda and Terry Southern. He also starred as a druggedout journalist in Francis Ford Coppola’s 1979 Vietnam War epic, Apocalypse Now. In the 2000s, he was featured in such films as Jesus’ Son and the television series Crash. Christie’s offered 30 works from the Hopper collection in November when a 1987 Jean-Michel Basquiat mixed media work, Untitled, sold for $5.8 million.

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Jobless claims hurt stocks


IRS watchdog calls for tax code overhaul BY DAVID KOCIENIEWSKI New York Times Service

The various calls to revamp the United States’ highly complex tax code have been joined by a significant new voice — the IRS’ own taxpayer advocate, who urged that the system be rewritten for the first time in a generation. Nina E. Olson, the national tax advocate who acts as an ombudsman for the IRS, issued a sweeping criticism of federal tax policy in her annual report to Congress. Olson found that the volume of the tax code had nearly tripled in size

during the last decade — to 3.8 million words in February 2010 from 1.4 million in 2001. She estimated that U.S. citizens spent 6.1 billion hours preparing their returns each year — the equivalent of 3 million employees working full time. By comparison, the federal payroll has 2.1 million full-time workers. The byzantine tax regulations also deprived the government of revenue by causing accidental underpayments and encouraging cheating, the report concluded, stating that the most practical remedy would be for Congress to scrap

the existing code, which was last overhauled in 1986. “The time for tax reform and tax simplification is now,” Olson said. While the report amplifies many OLSON frequently voiced criticisms, and is likely to be welcomed by many of the tax critics who ignited the Tea Party movement, most policy experts consider it unlikely that the federal government will take up the issue before

the 2012 presidential election. Howard Gleckman, an analyst at the Tax Policy Center, has said that neither U.S. President Barack Obama nor Congress has shown any eagerness to confront the combination of spending cuts and rate increases that would be needed to address the budget deficit. Still, the fact that the IRS’ own internal watchdog concedes that the federal tax system has become unmanageable underscores the severity of the problem. • TURN TO TAX, 2B


NEW YORK — Stocks slipped Thursday after the government reported an increase in applications for unemployment benefits last week. The Labor Department said Thursday that 409,000 people made claims for benefits for the first time. That’s up 18,000 from the previous week, when applications fell to their lowest level in more than two years. The report came a day after ADP estimated that companies added nearly 300,000 jobs in December, far more than the 100,000 economists expected. That pushed stock prices higher and Treasury prices lower as investors became more optimistic about the job market. The Dow Jones industrial average fell 25.58 points, or 0.2 percent, to close at 11,697.31. The Standard & Poor’s 500 index fell 2.71, or 0.2 percent, to close at 1,273.85. The Nasdaq composite index rose 7.69, or 0.3 percent, to 2,709.89. The most important news on the job market will arrive on Friday morning when the Labor Department releases its monthly survey of all U.S. payrolls and the unemployment rate. Economists expect the rate fell to 9.7 percent in December from 9.8 percent the previous month. “At worst unemployment is flat. At best it’s coming down,” said James O’Sullivan, chief economist at MF Global in New York. MF Global is optimistic about the jobs report. Despite the increase in claims last week, O’Sullivan noted that the four-week average fell to 411,000, the lowest since July 2008. Many retailers fell after reporting weaker sales in December. Target fell 7 percent to $54.93 and Gap fell 7 percent to $20.70. Macy’s fell 4 percent to $23.97. A blizzard in the Northeast hurt sales after Christmas. Retail sales were strong in November since many customers shopped earlier in the holiday season this year. Analysts still expect overall retail spending in November and December to increase by the largest amount since 2006. Three stocks fell for every two that rose on the New York Stock Exchange. Consolidated volume was 5 billion shares. Bond prices rose, sending their yields lower. The yield on the 10-year Treasury note fell to 3.40 percent from 3.46 percent late Wednesday. The yield is used to set interest rates on many kinds of loans including mortgages. Monsanto rose 2 percent to $70.79 after the company reported that higher sales of corn, soybean, vegetable and cotton seeds helped it become profitable again. Constellation Brands fell 8 percent to $19.84 after the maker of Robert Mondavi wine and Svedka vodka said revenue fell 2 percent on weak wine sales.

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WELCOME: Tourists who arrived on the cruise ship, Thomson Dream, below, pose for photos with Cuban dancers in Havana. The flagship of U.K.-based Thomson Cruises is carrying 1,500 passengers as part of a three week tour of the Caribbean.


ment now led by Fidel’s younger brother Raul appears to have taken a rosier view of late. Tourism Ministry official Jose Manuel Bisbe said the arrival of the Thomson Dream underscored the recent resurgence of cruise traffic to the island. In a brief address to journalists as passengers in shorts and flipflops streamed off the ship, Bisbe said a number of deals have been signed with European cruise operators to add regular stops in Cuban ports, and more accords are in the works.

HAVANA — A salsa band, dancing schoolchildren and showgirls in bikini tops and feather headdresses welcomed some 1,500 tourists on a British cruise liner that officials described as among the biggest ships to visit Cuba in years. Once a frequent sight here, cruise ships have become a rarity since 2006, after then President Fidel Castro complained that the industry did little more than flood this communist-governed country with trash. But the cash-strapped govern- • TURN TO CUBA, 2B

GM’s Buick to get luxury compact Europe sells DETROIT — (AP) — For the first time in its history, General Motors’ Buick luxury brand will get an upscale compact car. The company says it will unveil the Buick Verano on Monday at the Detroit auto show, GM’s only new model to debut at the event. The Verano is a small car based on the Chevrolet Cruze that GM says is designed to compete against the Audi A3 and Volvo S40 in the entry-level luxury market. GM engineers say they went to great lengths to make the car different from the Cruze, enhancing its handling and ride with a suspension borrowed from Europe’s Opel Astra, changing the body to give it a more sculpted,


aerodynamic look and making the car quieter with better insulation and window glass. GM also says the car has a far more luxurious interior than the Cruze. In past years, GM was guilty of selling the same car across many of its brands with only minor cosmetic differences between them. But Jim Federico, the car’s chief engineer, said the Verano will be far different from the Cruze to compete with sophisticated European and Japanese luxury brands. “We learned from our mistakes,” he said. The Verano, to be built in

Michigan, will arrive in showrooms sometime in the fourth quarter. Pricing was not announced, but the car is expected to cost somewhere between the luxury version of the Cruze, which starts around $22,000, and the midsize Buick Regal, which starts around $26,000. The car also is expected to attract younger buyers, helping Buick as it tries to shed its image of offering cars for senior citizens. In 2010, the average age of a Buick buyer was 65. Buick sales rose 52 percent in 2010 with a series of revamped models such as the Regal and LaCrosse larger luxury sedan.

bonds to finance Ireland rescue BY DAVID JOLLY New York Times Service

The European Union has begun issuing bonds to finance its rescue fund for Ireland, even as Portugal was required to pay more to sell short-term debt. At the same time, Europe got a vote of support from China when Li Keqiang, the deputy prime minister, reaffirmed Beijing’s commitment to continue buying Spanish bonds. European governments are working to gain control over their finances and reassure bond investors that they will be repaid, but the first half of the year will bring many tests as tens of billions of euros’ worth of debt come to market. As a step toward mastering the crisis, one of Europe’s new bailout agencies took its first foray into the market to help pay for the ¤85 billion ($112 billion) Irish rescue. The European Financial Stabilization Mechanism, an agency set up to finance rescues of embattled governments, issued ¤5 billion in five-year bonds, carrying an • TURN TO EUROPE, 2B

1/7/2011 5:55:14 AM





Investor threshold debated after Facebook deal BY AZAM AHMED New York Times Service

After news broke of the investment by Goldman Sachs in the social networking site Facebook, a harsh spotlight was cast on a nearly 50-yearold law that limits the number of shareholders in a private company. In 1964, regulators started requiring companies with more than 499 shareholders to publicly report their financial results. It is a rule that has been debated from the outset — and the issues raised now are the same ones raised then. The U.S. Securities and Exchange Commission is examining the frenzied buying and selling of Facebook shares and other private technology companies in the secondary market.

To some, the structure of the Goldman deal merely looks like a way to circumvent the law. Through a special purpose vehicle, the firm could potentially pool money from thousands of wealthy clients and still be considered one investor because the entity would be managed by Goldman. Section 12 (g) of the Securities Exchange Act of 1934 came about in the 1960s as over-the-counter trading in shares of privately held companies began to heat up and regulators worried that investors were not getting enough information. A special study from that period found that the “disclosures voluntarily made by unlisted companies left a great deal to be desired,” according to a speech by the

SEC commissioner at the time, Hugh F. Owens, given before the Practicing Law Institute in New York in 1964. “Not only did the volume of information delivered to shareholders vary considerably, but the candor with which it was presented was highly variable,” he said in the speech. “They involve thousands of corporations and hundreds of thousands of investors. The Securities Acts Amendments of 1964 effectively remove the distinction, which has existed as to a large number of the companies whose securities are traded over-the-counter,” Owens added. That is the same sort of issue facing regulators now, with shares in Facebook trading at a frenetic pace on the secondary market. The

announcement that Goldman will use a special purpose vehicle to raise and invest $1.5 billion in the company — money collected from a variety of wealthy individuals — has only intensified the scrutiny. In practice, a large fund that represents hundreds or thousands of individuals can be considered a single record holder. “So long as Goldman is the sole decision maker for all investors it’s irrelevant,” said Eleazer Klein, a partner at the law firm Schulte Roth & Zabel. Even so, questions remain about whether such a deal may stray from the spirit of the law while adhering to its letter. “Whether something is done primarily to circumvent

Europe sells bonds to finance rescue • EUROPE, FROM 1B

interest rate of 2.59 percent. That was well above the 1.85 percent on comparable bonds of Germany, the largest eurozone economy. Gerassimos Thomas, finance director for the European Commission, said he was pleased with the reception of the bonds. Demand was more than three times the amount offered, and the bonds were sold within an hour. The money, which should be paid to Ireland next Wednesday, is part of up to ¤17.6 billion that the commission will be contributing to the Irish rescue this year. Thomas said the funds would be provided to Ireland at a five-year fixed rate of 5.51 percent, after a 2.925 percent margin was tacked on. Up to an additional ¤4.9 billion is to be raised in 2012. The commission fund, backed by all 27 European Union members, has the authority to raise up to ¤60 billion. A separate entity, the European Financial Stability Facility, is authorized to borrow up to ¤440 billion, backed by eurozone governments. That facility is expected to begin issuing bonds for the Irish rescue toward the end of January, for as much as ¤16.5 billion in 2011 and up to ¤10 billion in 2012. The remainder of Ireland’s rescue package is to come from the International Monetary Fund, the Irish government and bilateral loans. European authorities have told investors to expect five such benchmark bond sales in the first half of 2011, two from the Euro-

the rules is a philosophical question,” Klein said. “There is a natural tension between being allowed to structure something in a manner that complies with the law and at the same point circumvents the law.” How did the government come up with the 500shareholder limit, a threshold that over the years has been called both too high and too low? The government did not want to subject small companies with limited shareholders to the costs of regulation and compliance. At the same time, regulators did not want to allow large companies with a multitude of investors to reap the benefits of public financing without disclosure and registration. Ultimately, lawyers say

IRS watchdog calls for tax code overhaul • TAX, FROM 1B


ALLIES IN CRISIS: Spain’s Prime Minister Jose Luis Rodriguez Zapatero, right, meets with China’s Executive-Vice Premier Li Keqiang in Madrid. Keqiang said China would ‘continue to look into the market’ and continue buying Spanish bonds. pean Financial Stabilization Mechanism and three from the European Financial Stability Facility. Earlier Wednesday, Portugal sold ¤500 million of six-month bills, with demand at 2.6 times the amount offered, up from 2.4 times in September, when it last sold similar debt. But perceptions about the fragility of Portugal’s finances led investors to demand a higher interest rate to hold the securities. The bills carried an average yield of 3.69 percent, far above the 2.05 percent Portugal paid for a similar issue in September. While the rate was in line with market expectations, it represented a sharp con-

trast to early last year, when Portugal paid less than 0.6 percent. Portugal said last week that it would need to raise about ¤20 billion in 2011. It has been struggling to convince international investors that it can reduce a gaping budget deficit and bolster economic growth, so as to avoid having to follow Greece and Ireland in seeking a rescue. As private investors have become increasingly nervous about investing in the bonds of so-called peripheral eurozone members, including Portugal, Ireland, Italy, Spain and Greece, official support from China, the world’s biggest creditor, has been welcomed by European officials.

Chinese officials have stepped up their remarks about Europe in recent weeks, pledging their support for debt-laden countries in particular as they seek to plow a small but growing share of China’s more than $2.3 trillion in foreign currency reserves into European investments instead of low-yielding U.S. Treasury securities. In Madrid, where Li met with officials including Prime Minister Jose Luis Rodriguez Zapatero of Spain, he said China would “continue to look into the market and to continue buying,” according to comments published by the Chinese Ministry of Foreign Affairs and cited by Reuters.

the number was picked arbitrarily. Scientific or not, it all comes back to investor protection. One issue today is whether wealthy investors — like those who will participate in the Goldman deal — need the same protection as smaller investors. There are plenty of examples where the government has determined that they do not, as with hedge funds and private equity investments. “We’ve lowered the bar for certain types of investors that we felt need less protection,” said Christian Leuz, a finance professor at the University of Chicago Booth School of Business. “But maybe what we’ve learned in recent years after the financial crisis is that sophisticated doesn’t always mean high net worth.”

The report’s prescriptions are likely to be more controversial than the diagnosis. Like the deficit commission set up by Obama, the National Tax Advocate’s office suggests that the tax system could be simplified and rates lowered if the federal government eliminated most of the $1.1 billion in write-offs, loopholes and deductions known as “tax expenditures.” The report cites some of the most controversial loopholes for wealthy individuals and specific industries — including tax subsidies for electric cars and golf carts, movie production and a byproduct of the papermaking process known as “black liquor.” It also points out that some of the most expensive tax expenditures are collected by tens of millions of lower- and middle-class U.S. citizens who receive tax breaks on home mortgage interest, employer-provided healthcare plans, 401(k)s and state and local taxes. “The dirty little secret is that the largest special interests are us — the vast majority of U.S. taxpayers,” the report said. “Virtually all of us benefit from certain exclusions from income, deductions from income or tax credits.” Unlike the deficit com-

mission’s tax overhaul proposal, which sought to raise additional revenue, the taxpayer advocate’s plan would be revenue neutral. The report also raised two troubling administrative issues facing the IRS — the agency’s growing reliance on tax liens for collections and its greatly expanded responsibilities under the new healthcare law. Noting that the IRS had filed 1.1 million tax liens against delinquent taxpayers in 2010, the report urged the agency to use less “hardcore” enforcement tools on people who were still financially distressed because of the economic slowdown. The taxpayer advocate also warned that as the new healthcare law takes effect in coming years, the IRS would need to expand and retrain its staff. “As the IRS prepares to administer large portions of the healthcare legislation, it will have to shift from being an enforcement agency that primarily says, in effect, ‘you owe us’ to an agency that places much greater emphasis on hiring and training caseworkers to help eligible taxpayers receive benefits and work one-on-one with taxpayers to resolve legitimate disagreements,” the report said.

Ship docks in Havana 15 years in, Microcredit has made a few enemies to much fanfare BY VIKAS BAJAJ

New York Times Service


“We think that more than anything, this change reflects the operators’ understanding . . . of all Cuba’s attributes as a destination,” said Bisbe, the ministry’s commercial director. Each passenger spends an average of $50 to $200 a day on the island, he said, adding that officials hope increased traffic will pump “several million dollars” into the lackluster Cuban economy this year. Bisbe did not specify how many cruise passengers were expected to dock in Cuban ports in 2011 but said about 10,000 visited the island in 2010. That was down from some 100,000 passengers in 2005, he said. Bisbe blamed the downturn on the 2006 purchase of Pullmantur Cruises — a Spanish company that was among the biggest operator of tours to Cuba — by Miami-based Royal Caribbean Cruises. Washington’s trade embargo bars U.S. tourists from visiting Cuba and prohibits nearly all business between both countries, so dockings dried up after the company changed hands.

07PGB02.indd 2

Cuba rolled out the red carpet to welcome the Thomson Dream, a ninedeck behemoth with four restaurants, two swimming pools, a casino and a disco. Little girls in traditional white dresses and colorful sashes and others inexplicably decked out in bee costumes performed as waiters to hand out shot-sized samples of Havana Club rum to the disembarking passengers. Four showgirls in towering headdresses and yellow spandex pants and matching sequin-covered bikini tops struck seductive poses as the tourists snapped pictures. Richard Ring, a 40year-old Briton, said he was amazed by the warm welcome. “People were leaning out of windows waving at us and we were waving back. It was really enthusiastic,” Ring shouted over the din of the salsa band. He added that “it was nothing like that” at the other ports visited by the Thomson Dream during a 14-day cruise, which included stops on the Caribbean islands of Barbados, Grenada and Curacao.

MUMBAI, India — Microcredit is losing its halo in many developing countries. Microcredit was once extolled by world leaders like Bill Clinton and Tony Blair as a powerful tool that could help eliminate poverty, through loans as small as $50 to cowherds, basket weavers and other poor people for starting or expanding businesses. But now microloans have sparked political hostility in Bangladesh, India, Nicaragua and other developing countries. In December, the prime minister of Bangladesh, Sheikh Hasina Wazed, who had championed microloans alongside Clinton at talks in Washington in 1997, turned her back on them. She said microlenders were “sucking blood from the poor in the name of poverty alleviation,” and she ordered an investigation into Grameen Bank, which had pioneered microcredit and along with its founder was awarded the Nobel Peace Prize in 2006. Here in India, until recently home to the world’s fastest-growing microcredit businesses, lending has slowed sharply since the state with the most microloans adopted a strict

law restricting lending. In Nicaragua, Pakistan and Bolivia, activists and politicians have urged borrowers not to repay their loans. The hostility toward microfinance is a sharp reversal from the praise and good will that politicians, social workers and bankers showered on the sector in the last decade. Philanthropists and investors poured billions of dollars into nonprofit and profit-making microlenders, who were considered vital players in achieving the United Nations’ ambitious Millennium Development Goals for 2015 that world leaders set in 2000. One of the goals was to reduce by half the number of people in extreme poverty. The attention lavished on microcredit helped the sector reach more than 91 million customers, most of them women, with loans totaling more than $70 billion by the end of 2009. India and Bangladesh together account for half of all borrowers. But as with other trumpeted development initiatives that have promised to lift hundreds of millions from poverty, microcredit has struggled to turn rhetoric into tangible success. Done right, these loans

have shown promise in allowing some borrowers to build sustainable livelihoods. But it has also become clear that the rapid growth of microcredit — in India some lending firms were growing at 60 percent to 100 percent a year — has made the loans much less effective. Meanwhile, politicians in developing nations, some of whom had long resented microlenders as competitors for the hearts and minds of the poor, have taken to depicting lenders as profiteering at the expense of borrowers. Nicaragua’s president, Daniel Ortega, for example, supported “movimiento no pago,” or the no-pay movement, which was started in 2008 by farmers after some borrowers could not pay their debts. Partly as a result of that campaign, a judge recently ordered the liquidation of one of the country’s leading microlenders, Banco del Exito, or Success Bank. In India, leaders in the southern state of Andhra Pradesh, which accounts for about a third of the country’s microloans, have accused lenders of impoverishing customers. Stories proliferated in the local news media about women who had amassed debts of $1,000 or

more as loan officers cajoled them into borrowing more than they could afford and then browbeating them to repay. Many had used the money to pay for televisions or healthcare or to soften the blow of failed crops, rather than as seed money for businesses. Microcredit firms in India were also accused of siphoning borrowers from government-run “self-help groups” — women’s organizations that can borrow small amounts at subsidized interest rates from government-owned banks. Industry leaders say they hope the issues will be resolved soon. The federal government and the Reserve Bank of India, the country’s central bank, are working on new federal regulations to oversee microcredit, said Alok Prasad, chief executive of the Microfinance Institutions Network. Still, some industry officials acknowledge that the sector also needs to reform itself to overcome political opposition and live up to its promise. They say that organizations that now offer only loans need to diversify into microsavings accounts, which many specialists assert are much better than loans at alleviating poverty.

1/7/2011 3:45:32 AM





British Airways, Rolls-Royce seal deal


BY ROBERT BARR Associated Press


CHANGE: A new wordless logo is better suited to Starbucks’ expansion beyond coffee into other business lines and into more international markets.

Starbucks rejigs logo for a new look From Miami Herald Wire Services

Starbucks is giving its siren a facelift. The world’s largest coffee company has unveiled a new logo that drops the words encircling its iconic sea nymph and gives her a few subtle updates. Starbucks says the changes amount to more than nips and tucks to its favorite lady. The fresh look goes with a new direction for the company as it makes its way back from its toughest times in its 40-year history. Prior versions of the logo helped build Starbucks into one of the world’s best recognized brands, and the company felt it no longer needed to reinforce its name at every turn. The new wordless logo also is better suited to the company’s expansion beyond coffee into a wider array of business lines and into more international markets. Starbucks revealed the logo Wednesday to a cheering crowd of employees in its Seattle offices and on a webcast and plans to bring it to stores in March to coincide with the company’s 40th anniversary. • SOCIAL NETWORKING LINKEDIN SAID TO PLAN IPO THIS YEAR LinkedIn, the popular social networking site built around professional relationships, plans to go public this year and has hired banks to advise it on the process, people with direct knowledge of the matter have said. LinkedIn chose Morgan Stanley, Bank of America Merrill Lynch and JPMorgan Chase as three advisors, after a round of pitches held in early November, said one of these people Wednesday, who requested anonymity because the process was confidential. LinkedIn and its advisors are working on the documentation necessary for an initial offering and will most likely complete the prospectus by the end of the quarter, this person said. • MEDIA TROUBLED NEWSWEEK NAMES PUBLISHER After months of staff turmoil including a new owner, editor and chief executive and scores of lower-level departures, the management ranks at Newsweek are beginning to stabilize. The magazine has named a new publisher, Ray Chelstowski, a former publisher of Rolling Stone and Entertainment Weekly. Chelstowski will assume responsibility for both Newsweek and The Daily Beast, a sign that the two organizations are moving closer toward completing a merger of their business operations. • NORTHERN IRELAND WATER COMPANY CHIEF QUITS OVER FAILURES The chief executive of a Northern Ireland company whose failures left thousands of customers without running water has stepped down. Northern Ireland Water, the province’s sole provider of water and sewage services, proved unable to deal swiftly with a series of burst pipes caused by late December’s sudden thaw, which followed some of the coldest weather seen in decades. • DEEP-SEA EXPLORATION WIKILEAKS USED IN FIGHT OVER TREASURE Deep-sea explorers in Florida are using some of the WikiLeaks documents released in troves to try to force the U.S. government out of their legal battle with Spain over a shipwreck treasure. Odyssey Marine Exploration of Tampa, Fla., says documents recently released by Wikileaks show the U.S. State Department had offered to help Spain’s side in the matter in exchange for help in returning a multimilliondollar painting — seized by the Nazis — to a U.S. citizen. Odyssey said this week it filed a motion urging an appeals court to throw out a “friend of the court” brief by the U.S. government supporting Spain’s bid for 17 tons of coins raised from a sunken Spanish galleon off Portugal in 2007. • TRADE JORDAN, SYRIA, LEBANON, TURKEY SIGN PACT A Jordanian official says Jordan, Syria, Lebanon and Turkey have moved closer to economic integration. The official Petra agency said Thursday that the countries signed an agreement establishing a committee to unify their legislation to enhance economic integration. It quoted Transport Minister Alaa Batayneh as saying Jordan has been tasked to draw up joint plans to develop the transport sector. Syria is to work on energy, Lebanon on tourism and Turkey on industry. • EUROZONE RETAIL SALES SHOW SURPRISE NOVEMBER DROP Retail sales in the 16 countries that used the euro in November unexpectedly fell, official figures showed Thursday, in another sign that consumers remain reluctant to spend amid ongoing worries about the level of debt in several countries. Eurostat, the European Union’s statistics office, said Thursday that eurozone retail sales fell 0.8 percent in November from the previous month, and revised down its estimate for spending in October. Now it thinks that retail sales were stagnant during the month instead of its previous prediction of 0.5 percent growth.

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landed safely, but the engine failure was the most serious safety incident involving the world’s biggest jetliner since it entered service in 2007. Qantas grounded all six of its A380s for 19 days, but all have returned to service. Rolls-Royce has upgraded engines of the same model as the Qantas engine, replacing a part which has been identi-

fied as the most likely cause of the problem. Airbus, meanwhile, announced Thursday that Asiana Airlines of South Korea had placed a firm order for six A380s, with delivery to begin in 2014. Asiana did not immediately announce an order for engines. It was the second A380 deal announced since November.

Skymark Airlines of Japan signed a memorandum of understanding on Nov. 12 to purchase four of the aircraft, but did not specify its choice of engines. Airbus says its has booked 240 orders for the A380, with 40 delivered through December. Rolls-Royce says nine customers have chosen the Trent 900 for their planes.

LONDON — British Airways and Rolls-Royce said Thursday that they have completed contracts for Trent 900 engines to power a dozen Airbus A380s, the first announcement of any deal for the giant engines since one disintegrated in flight on a Qantas superjumbo in November. The announcement seals a deal first announced in 2007. It includes a firm order for Trent 900s to power 12 of the four-engine A380s with a potential for seven further options, and Trent 1000 engines to power two dozen of the twin-engine Boeing 787 Dreamliners with 18 options. The contract also includes long-term support. Rolls-Royce said the value of the deal at list prices, including options, was potentially more than $5 billion. The engine maker’s shares were up 1.8 percent at 666 pence in early trading on the London Stock Exchange, above the 653 pence per share price just before the Qantas incident. BA says the first of its A380s is due for delivery in 2013. LEON NEAL/AFP-GETTY IMAGES A Trent 900 disintegrated on a Qantas A380 on DEAL: In an agreement between British Airways and Rolls-Royce, the engine maker Nov. 4, shortly after takeoff will provide Trent 900s, above, to power 12 of the four-engine A380s, and Trent from Singapore. The plane 1000 engines to power two dozen of the twin-engine Boeing 787 Dreamliners.

Firms told to reveal changes to tobacco BY DUFF WILSON New York Times Service

Federal regulators have outlined rules for the tobacco industry that for the first time require disclosure of any changes to their products, and that detail how to seek permission to market new products under the sweeping tobacco control law signed by U.S. President Barack Obama in June 2009. “Up to now, tobacco products have been the only mass-consumed products for which users do not know what they are consuming,” Dr. Lawrence R. Deyton, director of the Center for Tobacco Products of the Food and Drug Administration, said in a conference call with reporters. Matthew L. Myers, president of the Campaign for Tobacco-Free Kids, a Washington advocacy group, praised the FDA for its progress regulating tobacco. “As a result of the bright spotlight of FDA scrutiny, tobacco companies will no longer be able to secretly manipulate their products in ways that make them more addictive and appealing,” he said in a statement. Any tobacco product

changed after Feb. 15, 2007, when the legislation was introduced in Congress, must be reviewed by the agency. The disclosures by the companies are expected by March 22. Companies may apply for a fast track review of new products that are “substantially equivalent” to earlier products. One of the practical effects, Myers said, is that tobacco products changed after March 22 cannot be sold unless the FDA permits it. The agency has the power to order some products to be removed from the market that were introduced in the period from Feb. 15, 2007, to March 22. Steven Callahan, a spokesman for Altria, the maker of Marlboro cigarettes and the largest tobacco company, said the proposed rules were expected and under review by Altria. David Howard, a spokesman for R.J. Reynolds Tobacco, maker of Camel products and the second-largest tobacco firm, said the company’s products are all identical or substantially similar to earlier products, and it had applied for the designa-

tion. “We’ll see what happens,” he added. Lorillard, the third-largest tobacco company, declined comment. Lorillard is facing a FDA review of menthol flavored products, which account for 90 percent of its sales. The FDA Tobacco Products Scientific Advisory Committee plans to hear evidence about menthol at a hearing Monday and Tuesday, and is expected to issue recommendations by March. Also Wednesday, Gregory N. Connolly of the Harvard School of Public Health, a critic of the tobacco industry, said he had resigned from the scientific advisory panel. “The responsibilities of the advisory committee were very narrow, and they also place burdens on members in terms of you can’t report on your own science, you can’t communicate with your fellow members unless it’s in public, and implicit restraint from speaking with the media,” he said in an interview. “I think my effectiveness can be much greater not being on the board.” He also said the panel was in effect acting as to-

bacco industry scientists and had been too cautious in attacking menthol and nicotine. Connolly said he planned to testify on Monday about a new study showing the promotion of menthol cigarettes to women in Japan had increased the rate of female smoking even as Japanese men smoked less. The U.S. law banned candy-, fruit- and spice-flavored cigarettes but left the issue of menthol to the FDA Congress questioned whether menthol contributed to smoking initiation or deterred quitting. David J. Adelman, tobacco industry analyst for Morgan Stanley, said in a note to investors Wednesday that the chances of an FDA ban of menthol were reduced by the resignations of Connolly and Dr. Joshua M. Sharfstein, the FDA deputy commissioner. Connolly was the “dominant antitobacco voice in the menthol hearings thus far,” Adelman wrote. Sharfstein, who is leaving to become Maryland’s secretary of health, was a former congressional staff member involved in developing the legislation.

Panel points to multiple blunders as cause of spill BY JOHN M. BRODER New York Times Service

WASHINGTON — The Deepwater Horizon blowout and oil spill in the Gulf of Mexico was an avoidable accident caused by a series of failures and blunders by the companies involved in drilling the well and the government regulators assigned to police them, the presidential panel named to study the accident has concluded. The companies — BP, Transocean and Halliburton, and several subcontractors working for them — took a series of hazardous and time-saving steps without adequate consideration of the risks involved, the commission reports in a chapter of its final findings, released Wednesday in advance of the full report, to be published early next week. The panel also found that company officials had failed to consult with one another on critical decisions and that senior management had paid insufficient attention to the troubled well, which was being drilled a mile under the gulf’s surface. The commission warned that without major changes, another such accident was likely. “The blowout was not the product of a series of aberrational decisions made by

rogue industry or government officials that could not have been anticipated or expected to occur again,” it concluded. “Rather, the root causes are systemic and, absent significant reform in both industry practices and government policies, might well recur.” BP’s Macondo well erupted April 20, causing an explosion aboard the drilling rig that killed 11 men and led to the spill of nearly 5 million barrels of oil, some of which still befouls the gulf shoreline. Spokesmen for BP and Halliburton said they had not yet seen the report and had no comment. A spokesman for Transocean said that BP, not Transocean, made the major decisions in the final hours before the blowout. “Based on the limited information made available to them, the Transocean crew took appropriate actions to gain control of the well,” the spokesman said. “They were well trained and considered to be among the best in the business.” The seven-member presidential commission, led by Bob Graham, a former Florida senator, and William K. Reilly, a former administrator of the Environmental Protection Agency, was charged by U.S. President Barack Obama in May 2010

with finding the root causes of the accident. It is one of several bodies investigating the blowout. The Justice Department is conducting civil and criminal investigations and has sued BP and others, and there is extensive private litigation against the companies as well. The findings will come as no surprise to the companies or to federal regulators, who say they have already taken steps to address the problems identified by the commission. “The report released today reflects areas the Interior Department has already identified, acknowledged and spent months working aggressively to reform,” said Kendra Barkoff, the department’s press secretary. The presidential panel did not try to assign specific blame for a catalog of mistakes and shortcuts taken by the companies and their employees, but it is clear from the report that the major players engaged in highly risky behavior that neither senior management nor government regulators properly oversaw. The chapter released Wednesday includes a chart listing nine actions taken by the companies that saved time and money when less risky alternatives were available. These included not in-

stalling enough devices to stabilize the well, not waiting for the results of tests on the foam used to seal the well, removing drilling fluid from the riser before a cement plug had been set and ignoring the results of a failed pressure test shortly before the well blew out. The report did not pin the accident on any one of these mistakes, but rather attributed it to a broader breakdown of communication and a lack of a culture of safety at the companies involved. “The most significant failure at Macondo — and the clear root cause of the blowout — was a failure of industry management,” the study concluded. “Better management of decisionmaking processes within BP and other companies, better communication within and between BP and its contractors and effective training of key engineering and rig personnel would have prevented the Macondo incident.” The commissioners referred to “compartmentalization” of information within and between companies, like the failure of BP and Halliburton officials onshore to report to workers aboard the rig known problems with the cement to be used to seal the well.

1/7/2011 4:09:42 AM



DOW 11,697.31



S&P 500 1,273.85






6-MO T-BILLS .17%


30-YR T-BONDS 4.53%


Dow Jones industrials


Nasdaq composite


Close: 11,697.31 Change: -25.58 (-0.2%)


Close: 2,709.89 Change: 7.69 (0.3%)








11,000 2,400 10,500 2,200

10,000 9,500




2,074 2,002 1153 1472 189 8

The dollar rose against the euro Thursday, but it fell against the Japanese yen. Many traders are awaiting Friday’s monthly jobs report to get a better sense about the health of the economy.






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... 1.72f 0.10e 0.72 0.64 ... ... 0.60 ... 0.04 ... ... ... ... ... 0.40 ... ... 0.16 ... 0.38 0.04 ... ... 1.28 0.40f ... ... ... 0.88 0.48 0.10e ... ... 1.00 0.12 0.12 0.16f ... ... ... ... 0.16 0.20 ... ... ... ... ... ... 2.30e 2.00 ... ... ... ... ... 0.50 ... 0.52f 0.80 ... 1.08 ... ... ... 15.00e ... 0.04 ... ... ... 0.75e ... ... ... ... 1.88 1.60b ... 2.08 ... 0.15

07PGB04.indd 4

8.45 29.15 24.78 44.73 38.59 27.53 18.75 26.89 39.09 14.44 1.24 5.78 7.97 8.05 3.52 47.27 1.31 2.62 11.31 68.90 22.76 29.10 4.57 8.21 46.43 39.65 2.70 15.27 .44 18.11 93.10 8.90 23.82 3.92 46.33 52.90 38.62 26.40 15.72 10.40 .67 1.21 19.14 23.97 14.65 9.16 14.51 4.91 69.30 5.67 13.67 52.11 9.59 6.01 3.96 2.93 26.07 15.81 10.46 32.73 29.79 47.86 52.15 39.69 10.16 23.06 102.11 .85 28.65 21.50 6.87 14.08 53.44 4.35 6.99 3.41 49.20 72.49 17.71 2.74 62.20 6.61 36.88

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9>= -1.36 +41.57 -24.35 +28.48 -0.19 -106.57 +148.99 -512.20 -84.32




Barclays LongT-BdIdx Bond Buyer Muni Idx Barclays USAggregate Barclays US High Yield Moodys AAA Corp Idx Barclays CompT-BdIdx Barclays US Corp




Prime Rate Fed Funds Target 3-month T-bill 6-month T-bill 52-wk T-bill 2-year T-note 5-year T-note 10-year T-note 30-year T-bond

The yield on the 10-year Treasury note fell to 3.41 percent Thursday. Yields affect interest rates on consumer loans.

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DOW DOW Trans. DOW Util. NYSE Comp. NASDAQ S&P 100 S&P 500 S&P 400 Wilshire 5000 Russell 2000




IjeYaiH[YWf Vol. (in mil.) 5,036 Pvs. Volume 4,848 Advanced 1207 Declined 1836 New Highs 195 New Lows 6


9>= -0.04% +0.60% -0.40% +0.12% ...% -0.28% +1.44% -0.72% -0.63%

MA CE GJH 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0

OJ: +2.27% +0.97% +2.03% +3.26% +2.62% +0.10% +2.94% +1.84% -0.98%



MA CE GJH 0 0 0 0 0 0 0 1 0 0

0 0 0 0 0 0 0 0 0 0

OJ: +1.03% +0.73% +0.36% +0.46% +2.15% +1.56% +1.29% +0.61% +1.24% +0.99%

0 0 0 0 0 0 0 0 0 0

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CtrVABcs h HaupgDig LexiPhrm IndBkMI rs NthnStat DaqoNEn n ValeantPh CarverBcp VillBk&Tr YadkinVFn

2.30 3.65 2.20 2.16 2.11 13.50 35.55 2.43 2.16 2.61

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Goldcp wt RareEle g Phazar Molycorp n Thrmogn rs Kingstone Wowjnt un AvalRare n PacSunwr WetSeal

2.62 13.84 4.70 52.86 3.23 3.41 3.90 6.40 4.80 3.46

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-17.0 -13.7 -13.0 -12.9 -12.9 -12.6 -12.4 -12.3 -12.2 -11.5

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29.15 16.36 15.05 14.44 20.95 4.95 8.79 29.71 5.45 23.67 18.22 20.70 18.56 38.90 7.15 10.94 28.42 47.69 57.60 78.97 20.77 44.48 1.13

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BWij 9^]








19.33 +2.35

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RegionsFn S&P500ETF





CRUDE OIL $88.38


EURO 1.3014




GOLD $1,371.40







































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19.44 18.16 19.53

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36.29 17.11

-.30 -.09

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34.67 35.02

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71.26 13.22 35.56 109.84

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18.35 46.24 9.58 68.37 22.89 28.73 30.01 44.98 11.39 8.07 13.64 13.85 11.58 13.85 85.50 33.02 38.53 72.30 18.08 8.45 11.10 10.70 11.29

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45.08 45.08

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6.68 11.29 2.19 2.21

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29.58 21.09

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13.62 ... 17.90

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37.26 60.12

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35.27 43.18

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24.71 24.01

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13.00 12.95

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14.29 14.24

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36.23 60.42

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12.04 9.12 10.37 10.81 10.81 10.81 10.81 10.81

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-0.1 -1.8 -0.2 -0.3 -0.3 -0.3 -0.3 -0.3










38.64 20.46 34.32 24.00 32.51 23.88 59.16 9.45 16.54 23.75

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+1.3 +0.7 +1.4 +1.3 +1.1 +0.7 +1.1 -0.4 +0.6 +1.8





117.38 117.38 40.04 10.70 10.70 5.73 52.31 123.97 9.89 25.51 10.39 12.99 116.55 116.56 28.91 19.25 22.17 19.63 20.50 13.26 10.99 15.86 66.60 69.10 10.76 10.76 19.16 12.46 22.18 13.17 12.67 10.55 10.55 10.55 10.55 15.66 31.97 31.98 31.97 21.66 52.48 31.31 54.08 46.36 13.72 26.12

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D;J'OH O;IJFLI9>=7=E Unleaded Gas (gal) 2.44 2.44 ... 2.14 Crude Oil (bbl) 88.38 90.30 -1.92 83.18 Gold (oz) 1371.40 1373.40 -2.00 1135.90 Platinum (oz) 1732.70 1730.30 +2.40 1552.20 Silver (oz) 29.11 29.17 -.06 18.16 Coffee (lb) 2.33 2.33 ... 1.42 Orange Juice (lb) 1.83 1.82 +.01 1.39 Sugar (lb) 0.30 0.32 -.02 .28

9ecX_d[ZIjeYai DWc[ ABB Ltd ACE Ltd AES Corp AFLAC AGCO AMB Pr ASML Hld AU Optron AbtLab AberFitc Accenture Acergy AcmePkt ActivsBliz AdobeSy AdvAuto AMD AdvSemi Advantest AecomTch Aegon Aetna AfďŹ lMgrs Agilent Agnico g Agrium g AirProd Airgas Aixtron AkamaiT Albemarle AlbertoC n AlcatelLuc Alcoa Alcon Alere AlexREE Alexion AllgEngy AllegTch Allergan AlliData AlliHold AlliantEgy AllscriptH Allstate AlphaNRs AlteraCp lf Altria Alumina AlumChina AmBevC s AmBev s Amazon Amdocs Ameren AMovilL AMovilA AEagleOut AEP AFnclGrp AmIntlGrp AmTower AmWtrWks Amerigas Ameriprise AmeriBrgn Ametek s Amgen Amphenol Anadarko AnalogDev AnglogldA ABInBev Annaly Ansys Aon Corp Apache AptInv ApolloGrp Apple Inc ApldMatl Aptargrp AquaAm ArcelorMit ArchCap ArchCoal ArchDan AresCap ArmHld ArrowEl Ashland AssuredG AstraZen Atheros AtlasEngy Atmel ATMOS Autodesk Autoliv AutoData AutoZone AvagoTch AvalonBay AveryD Aviva Avnet Avon AXIS Cap B Comm BB&T Cp BCE g BHP BillLt BHPBil plc BMC Sft BOK BP PLC BRFBrasil s BT Grp BabckW n Baidu s

BWij 9^] 21.78 61.72 12.99 56.07 52.34 32.76 36.32 10.08 48.17 53.53 48.46 25.71 61.31 12.26 32.27 60.27 8.69 5.49 22.90 26.81 6.29 32.09 100.00 41.48 69.76 92.47 88.34 63.65 39.25 48.45 54.81 37.03 2.97 16.36 163.47 38.86 73.07 82.56 25.05 55.80 70.55 71.48 48.72 37.25 20.31 31.50 64.33 36.33 24.58 10.16 23.68 25.48 30.55 185.86 27.74 28.29 58.82 58.67 15.05 36.14 33.15 60.45 50.62 25.23 48.59 60.08 34.86 39.34 56.55 51.68 74.46 37.81 44.80 57.07 17.65 53.27 44.78 122.38 25.46 39.47 333.73 13.89 47.47 22.43 35.89 86.88 34.91 31.69 16.63 21.78 34.87 53.73 19.75 47.24 44.56 44.15 13.08 31.71 41.26 80.58 48.00 249.55 28.52 110.71 41.12 12.92 32.99 30.14 35.61 38.40 26.89 35.85 88.92 77.74 47.54 54.37 46.23 17.07 28.69 26.32 105.16

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BWij 9^]

BakrHu 54.83 Baldor 63.06 BallCp 70.65 BanColum 60.90 BcBilVArg 9.37 BcoBrades 19.84 BcoMacro 48.75 BcoSantand 10.13 BcoSBrasil 13.08 BcSanChile 91.01 BcoChile 89.41 BkMont g 58.39 BkNYMel 31.44 BkNova g 55.96 Barclay 17.26 Bard 91.96 BarrickG 49.26 Baxter 50.25 BaytexE g 46.63 BeckCoult 76.04 BectDck 83.25 BedBath 48.84 Bemis 32.59 Berkley 27.07 BerkHa A 120600 BerkH B s 80.37 BestBuy 35.25 BiogenIdc 67.26 BlkHillsCp 30.80 BlackRock 189.93 Blackstone 14.98 BlockHR 12.59 BdwlkPpl 31.29 Boeing 68.80 BorgWarn 72.48 BostProp 85.87 BostonSci 7.41 BrasilTele 22.98 BrasTel C 9.20 Braskem 24.91 BrigExp 26.92 BrMySq 25.84 BritATob 76.95 Broadcom 44.86 BrkďŹ&#x201A;dAs g 32.70 BrkďŹ&#x201A;dPrp 17.37 BrwnBrn 24.28 BrownFA 69.06 BrownFB 69.12 Buckeye 66.44 Bucyrus 89.91 Buenavent 45.06 BungeLt 67.38 CA Inc 24.72 CAE Inc g 11.76 CB REllis 20.74 CBS B 19.47 CF Inds 138.02 CGG Verit 30.04 CGI g 17.22 CH Robins 79.64 CIGNA 39.01 CIT Grp 47.29 CME Grp 313.64 CMS Eng 18.71 CNA Fn 27.64 CNH Gbl 49.40 CNOOC 239.00 CPFL En 76.53 CRH 18.77 CSX 66.23 CTC Media 24.03 CVS Care 35.03 CablvsnNY 34.82 CabotO&G 37.43 Calpine 13.98 CamdnP 53.91 Cameco g 39.43 Cameron 48.79 CampSp 34.62 CIBC g 77.35 CdnNRy g 66.51 CdnNRs gs 43.10 CP Rwy g 64.51 Canon 51.25 CapOne 45.40 CardnlHlth 39.35 CareFusion 25.41 CarMax 31.70 CarnUK 48.77 Caterpillar 93.54 Celanese 42.21 Celgene 58.99 Cellcom 33.19 Cemex 10.62 Cemig pf 16.74 Cemig 12.85 CenovusE 32.12 CenterPnt 15.61 CnElBras lf 14.10 CntryLink 45.44 Cephln 60.46 Cerner 94.63 Cervecer 57.93 CharterCm 39.22 ChkPoint 46.72 ChesEng 26.67 ChesUtl 39.46 Chevron 90.69 ChicB&I 32.27 Chimera 4.10 ChinaEA s 26.37 ChinaLife 61.95 ChinaMble 49.66 ChinaPet 98.41 ChinaSoAir 30.69 ChinaTel 53.41 ChinaUni 14.22 Chipotle 226.50 Chubb 58.74 ChungTel 24.76

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DWc[ ChurchDwt Cimarex CinnFin Cintas Cisco Citigrp CitiTdecs CityNC CliffsNRs Clorox Coach CobaltIEn CocaCE CCFemsa CCHellenic CocaCl CognizTech ColgPal Comc spcl Comerica CmcBMO ComScop CmtyHlt CBD-Pao s CompSci ConAgra ConchoRes ConocPhil ConsolEngy ConEd ConstellA ConstellEn ContlRes Cooper Ind Copart Copel CoreLab s CornPdts Corning Corpbnca Cosan Ltd Costco Covance CoventryH Covidien Credicp CredSuiss Cree Inc CrwnCstle CrownHold s CullenFr Cummins CypSemi DPL DR Horton DTE Danaher s DaVita DeVry DeckOut s Deere DelMnte Delhaize Dell Inc DeltaAir DenburyR Dndreon Dentsply DeutschBk DevelDiv DevonE Diageo DiaOffs DicksSptg DigitalRlt DirecTV A Discover DiscCm A DiscCm C DishNetwk DrReddy DolbyLab DollarGen DllrTree s DomRescs Domtar grs Donldson DonlleyRR Dover DowChm DrPepSnap DresserR Dril-Quip DuPont DukeEngy DukeRlty DunBrad ETrade rs eBay EMC Cp ENI EOG Res EQT Corp EstWstBcp EastChm Eaton EatnVan EVTxMGlo Ecolab Ecopetrol EdisonInt EdwLfSci s ElPasoCp ElPasoPpl Elan EldorGld g ElectArts EAndinA EAndinB Embraer

BWij 9^] 69.24 89.21 32.11 28.00 20.95 4.95 140.55 61.50 83.32 62.48 52.88 13.24 24.31 83.01 25.30 63.03 75.51 78.71 21.49 41.31 40.17 31.37 38.79 41.07 51.63 22.69 85.50 66.97 50.43 49.32 19.84 31.01 57.41 58.52 37.45 24.92 87.78 46.27 19.51 84.00 14.06 70.65 50.60 28.67 46.46 117.45 42.39 67.22 42.14 33.95 45.26 60.98 110.16 18.92 25.63 12.83 45.67 46.90 69.07 47.91 78.78 84.25 18.89 72.50 14.26 12.91 18.45 35.42 34.84 54.15 13.59 78.23 75.79 67.29 35.50 51.92 41.17 18.99 40.31 34.86 21.09 37.50 67.45 29.80 51.35 43.19 79.30 57.91 17.61 57.56 35.34 36.58 41.40 73.58 49.98 17.74 12.73 82.57 16.28 28.42 23.67 44.56 92.82 45.37 20.35 87.25 102.59 29.89 10.70 49.61 40.81 38.50 78.81 13.70 33.47 6.76 17.01 16.23 23.61 29.89 29.49

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BWij 9^] 44.88 54.12 18.87 34.42 38.96 54.36 49.77 54.72 23.60 18.32 21.49 60.37 13.17 24.82 57.06 41.42 7.15 16.59 17.97 46.08 69.00 80.51 9.83 63.93 52.21 35.98 38.59 54.25 67.00 39.88 34.06 30.84 39.70 45.59 77.29 46.94 19.04 48.21 20.77 114.48 20.41 148.66 55.81 18.78 27.89 8.93 76.55 10.61 48.30 268.68 24.35 24.73 23.71 24.11 16.04 44.48 21.45 45.67 33.64 32.26 26.56 63.21 40.34 88.03 86.54 38.21 52.40 29.53 15.23 38.20 20.39 50.42 50.92 40.46 8.71 63.02 18.09 70.38 65.77 42.72 14.10 17.48 52.23 13.09 31.27 21.61 47.55 104.17 74.03 29.42 17.65 22.95 34.19 6.12 89.76 47.29 39.73 47.64 41.56 105.76 28.53 35.58 23.02 30.47 37.47 35.38 15.88 64.52 68.97 32.00 56.40 34.94 28.89 29.22 34.70 38.12 73.18 39.75 18.28 80.98 24.13

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BWij 9^] 19.87 43.91 68.11 19.33 45.51 56.44 96.46 74.01 61.40 13.70 24.98 47.40 10.42 55.70 78.84 31.17 49.30 35.23 31.45 31.46 47.21 62.28 111.81 83.60 26.64 57.48 49.59 36.97 14.42 101.14 85.91 20.39 81.15 31.11 20.25 31.88 61.60 15.70 12.93 24.48 32.06 36.58 14.16 18.18 66.84 25.77 66.04 131.04 19.15 32.83 36.77 38.95 18.18 27.00 57.72 57.87 29.81 61.13 41.46 87.98 24.18 63.12 32.53 39.17 107.94 39.50 3.13 10.83 169.10 93.05 142.92 65.16 437.32 31.45 32.38 64.69 43.90 19.95 14.50 61.42 21.29 31.25 101.77 8.23 36.59 19.70 52.67 21.26 54.69 17.51 7.47 31.24 63.55 79.14 44.74 56.45 48.72 33.63 46.25 24.35 32.87 41.95 27.67 7.14 56.20 52.97 62.42 27.14 61.37 34.49 33.85 68.67 38.46 31.77 73.05 59.43 39.79 34.78 75.63 63.77 63.86

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BWij 9^] 32.86 51.79 12.48 65.97 65.74 31.59 16.06 49.74 40.65 24.00 18.31 67.48 13.24 58.98 71.14 10.96 51.94 21.23 40.61 143.34 52.73 7.85 32.73 17.46 50.16 80.53 17.97 50.09 48.52 33.72 14.75 25.83 70.55 51.77 30.57 21.02 34.91 82.86 93.08 72.67 17.44 117.35 65.50 42.11 5.77 34.19 95.35 21.69 77.08 59.06 1.64 30.15 51.40 20.05 62.40 55.65 57.39 51.48 24.63 34.93 36.01 45.05 37.89 47.63 24.70 13.16 36.46 37.75 24.86 4.65 66.53 23.41 31.96 61.20 47.32 23.35 18.83 78.57 10.47 15.92 54.64 7.00 30.60 37.23 40.75 17.69 61.28 26.68 29.86 23.90 19.82 18.01 33.86 45.52 55.85 12.87 22.95 22.35 54.93 28.14 49.96 62.38 15.12 25.75 8.34 13.43 11.00 24.50 66.01 16.47 16.53 43.74 47.35 43.44 29.25 42.69 19.45 33.25 24.46 56.58 37.60

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BWij 9^] 86.14 19.50 60.19 42.08 66.54 33.27 49.03 17.71 20.93 61.48 74.02 54.16 15.96 81.54 46.99 37.09 21.16 51.94 76.23 73.04 54.39 40.17 47.98 17.46 35.14 42.74 16.56 16.78 22.75 31.82 10.58 40.26 47.33 62.91 30.51 30.09 92.55 25.75 3.17 26.29 59.06 79.15 66.26 38.37 44.40 25.02 36.07 83.60 35.13 30.92 35.55 23.78 30.56 33.97 69.00 52.72 28.95 41.59 33.76 34.34 36.23 36.20 40.42 15.54 26.85 73.17 34.39 94.54 27.56 83.75 40.49 61.25 62.50 35.24 53.96 40.32 135.49 23.19 440.70 27.67 36.41 76.05 51.81 21.85 52.10 59.52 32.15 33.01 19.37 109.77 20.02 87.86 112.72 48.10 24.53 46.83 34.38 35.15 33.97 13.62 15.69 57.94 40.48 29.94 114.67 22.16 23.50 11.46 30.14 54.10 17.06 11.78 31.78 40.59 48.91 52.60 24.83

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1/7/2011 6:03:50 AM






TV sales slowing despite new technologies BY SAM GROBART New York Times Service

LAS VEGAS — By now, most people in the United States have taken the leap and tossed out their old boxy televisions in favor of sleek flat-panel displays. Now manufacturers want to convince those people that their once-futuristic sets are already obsolete. After a period of strong growth, sales of televisions are slowing. To counter this, TV makers are trying to persuade consumers to buy new sets by promoting new technologies. At this week’s Consumer Electronics Show, which opened Thursday, every TV maker will be crowing about things like 3-D and Internet connections — features that have not generated much excitement so far. Unit sales of liquid-crystal and plasma displays were up 2.9 percent in 2010 from the previous year, according to figures from the market researcher DisplaySearch. That is tiny compared with the gains of more than 20 percent in each of the prior three years. Those heady days of the last decade were the result of an unusual set of circumstances. The rise of flat-panel television technologies like plasma and LCD almost perfectly coincided with a government-mandated switchover to digital broadcasting and the availability of highdefinition shows and movies — something these new televisions were all ready to display. That sparked a mass migration of consumers from using the old cathode-ray tube television sets to the thinner and lighter plasma and liquid-crystal displays. “Those were the golden years,” Paul Gagnon, director of North American TV research at DisplaySearch, said. “During that period,


3-D TRIAL: Unit sales of liquid-crystal and plasma displays were up 2.9 percent in 2010 from the previous year, according to figures from the market researcher DisplaySearch. That is tiny compared with the gains of more than 20 percent in each of the prior three years. Above, a customer tries out a 3-D TV in Los Angeles. the whole pie grew. Technology inflated the size of the category.” But now, most people who want a flat-screen TV already own one. Industry watchers and manufacturers estimate that nearly twothirds of households in the United States. have a flatscreen set. “The laggards are stubborn,” Gagnon said. “They will not move as quickly as the rest of the market has.” The industry’s response has been to promote 3-D and Internet capabilities. But these were also the buzzwords at 2010’s show, indicating that after a period of consistent innovation and

improvement — from higher resolutions to thinner displays — the TV market is maturing and stabilizing. “In the next decade, the rate of change may not be the same,” said James Sanduski, Panasonic’s senior vice president for sales. “That said, it will still be significant.” So far, 3-D has not prompted a rush to upgrade. John Revie, senior vice president for home entertainment at Samsung, said 3-D had been saddled with a perception that it stumbled out of the gate, even though its introduction compared favorably with other technological introductions.

“More than 1 million 3-D TVs were sold in 2010,” he said. “But LED, HD and Bluray each sold less than a million in their first year.” That said, Revie acknowledged the perceived shortfall. “Frankly, Samsung was hoping to drive a bigger market.” Some feel that 3-D’s appeal will remain limited. Riddhi Patel, director for television systems and retail services at iSuppli, a market researcher, said the sales pitch for 3-D was a complicated one. “Consumers are aware of the hidden costs,” Patel said. “It’s not just the display, but now you need a 3-D Blu-ray

player and 3-D media and additional glasses.” She also questioned the payoff. “When everyone markets 3-D to you, they talk about Avatar and the theatrical experience,” she said. “When you have a 42-inch TV or even a 50inch TV, it’s not the same experience.” Internet features are now common in new TV models. But recent missteps by technology companies like Google with its Google TV service, as well as the often confusing mosaic of streaming and download providers, have left the market looking a little muddled. “Every manufacturer has

their own way” of dealing with Internet video, Sanduski said. “There’s not one standard.” One way manufacturers are trying to make these features friendlier is by using Apple’s iPhone model, allowing outside companies like Netflix to develop applications that work on their displays. On Wednesday, Panasonic and LG announced new Internet TV platforms that will open up the interfaces of their sets to outside developers. One big issue for TV makers is price. From 2007 to 2010, the average price of an LCD TV dropped 36.3 percent, according to DisplaySearch. Plasma TV prices had an even more precipitous decline, dropping 51.6 percent in the same period. But those price drops have slowed recently, as manufacturers have gotten a handle on what had been an oversupply of product and have started to charge more for the new features. “It’s kind of like having the auto industry trying to raise the prices of cars by 20 percent by adding all these options to every vehicle,” Gagnon said. In another bright spot for TV makers, consumers seem willing to upgrade their sets more frequently than they did in the tube era, when it was not uncommon for them to use the same sets for a decade or more. “People held on to their TV like an appliance,” Sanduski said. Analysts and TV makers now assume a five-to-sevenyear replacement cycle for televisions. For the manufacturers, that may feel like an awfully long time. But it is only slightly longer than the cycle for PCs, which are replaced every three to four years. “There’s a little bit of fatigue,” Sanduski said. “Many consumers are saying, ‘I just bought a TV. I’m going to wait.’ ”

Fitness tech: Don’t worry, it’s sweatproof BY VICKY HALLETT The Washington Post Service

Let me guess: You’ve resolved to get healthier in 2011. That goal is nothing new, but the technology you can use is. Want to carry a personal trainer in your pocket to the gym, calculate how fast you ran the first mile of your morning jog or get gift cards in exchange for sweating? It’s all easy to do with the right gizmos. Probably the only thing growing faster than the obesity rate in the United States is the number of healthcare and fitness programs in the iTunes App Store. There are thousands to choose from, including the popular Lose It!, a free calorie counter launched in November 2008 that lets you input your exercise and anything you’ve eaten to help you slim down. Charles Teague, co-founder of FitNow, which makes Lose It!, thinks going mobile has been critical to users’ success. “Instead of being something you track at the end of each day, you know now,” he says. “If I’m stopping to pick up a bagel, I can check how I’m doing that day. Have I been out of control?” That is, unless you don’t have an iPhone. So late last month, “Lose It!” released a book (and, of course, a Kindle edition) to reach out to the masses. The major difference between the application and the book is that the latter contains in-depth content, such as explanations of why weight training is beneficial, which fitness apps have been light on — so far. Teague’s other favorite apps are ones that rely on GPS to measure your speed and distance when you’re running, walking or cycling. Run-

07PGB05.indd 5

Keeper, a freebie that works on iPhone and Droid, is his pick. (RunKeeper Pro, normally $10, is free in January.) But there are a ton of others that provide a similar service, including Endomondo (which is available for iPhone, Droid and BlackBerry, and offers a social media component) and Adidas miCoach (which is available for iPhone and BlackBerry, and provides vocal encouragement from top athletes). Both are free. If you have a specific goal, there are apps

for that, too. The classic is Hundred PushUps ($2), which has spawned several pals, including Two Hundred Squats and Twenty Chinups ($2 each). A newly revamped, free option is the NikeWomen Training Club, a series of workouts designed to help you “get lean,” “get toned,”

“get strong” or “get focused” on specific body parts. The video exercise clips feature women, so if you’re looking for more testosterone, download the just-released Stack Attack ($3), featuring elite trainer Tim Grover and 80 bodyweight moves. Tech companies are stepping it up when it comes to gadgets, which now go way beyond basic pedometers. Triathlon training has been revolutionized by GPSenabled heart-rate monitors (from $200) made by Garmin and other manufacturers. The devices give data geeks an incredible amount of information to digest about their sports performance. If your goal is to lose weight, however, you’ll probably be more interested in the Bodybugg ($165-$219), BodyMedia Fit ($199-$260) and Fitbit ($99). The first two are armbands that measure your movement and level of intensity; the simpler Fitbit clips to your clothes and estimates activity. All of them are pretty cool, especially because you can link up that info with smartphone apps. But exercise physiologist Mary Jayne Johnson, a spokeswoman for the American Council on Exercise, warns that it takes a certain personality type to want that many numbers. Most folks just need something to get them going. And the best product for that may be S2H Replay ($20), a watch that can tell when you’re engaged in moderate to intense physical activity. You can check if you’re working out hard enough by pressing a button that will show either a smiley or frowny face. Keep up the smile for 60 minutes

(either at once or over several bursts of activity), and you’ll get a reward code for points toward gift cards at stores such as Target, Toys “R” Us and Sports Authority. In March, S2H is expects to release a pedometer ver-

sion. But if you want to get walking now, pick up GeoPalz ($20 each), kiddie pedometers that earn you credits on sports gear. “You are the controller.” That’s the slogan for Kinect ($150), the Xbox 360 add-on

that has the fitness world abuzz. Alongwith PlayStation’s Move ($100) and the good old Wii ($200), gamers of the future will be standing up and jumping around rather than sinking deeper into the living room couch.

From the Miami Herald International’s London Bureau Chief comes

IQ: How Psychology Hijacked Intelligence    

Out in Paperback, from Duckworth Press 


‘Zestily polemical’ Guardian ‘Engaging and lively…a page-turner’ Independent ‘Well-informed…consistently interesting…powerful’ John Carey, Sunday Times Should you wish to order a copy at the promotional rate, please contact

1/7/2011 4:39:55 AM








Opening lead — ♣ queen

who made his house out of sticks, drew only two rounds of trumps, then played on As a student of both hearts. Had the suit broken bridge and children’s litera3-3, he would have drawn ture, I am always eager to find out how the Three Little the last trump, of course. His Pigs do on their ventures into hope was that the player with WEST EAST four hearts would have the the duplicate bridge club. ♠75 ♠832 Fortunately for me, they tend last trump, enabling declarer ♥ J 10 5 2 ♥76 ◆KJ96 ◆ Q 7 5 3 to occupy the same seat, so I to ruff the heart loser in ♣QJ9 ♣ A K 10 8 and the readers can compare dummy. Unlucky! The third little pig, who their performances on the relied on bricks for his house, problems they encounter. SOUTH won the diamond ace at trick Take today’s deal, for ♠AQJ64 instance, where all three little four, ruffed a diamond, then ♥A984 drew two rounds of trumps pigs declared four spades, ◆ 10 ending in dummy. When they and each of them encoun♣643 tered a defense starting with split, he ruffed another diamond, crossed to dummy’s three rounds of clubs. Vulnerable: North-South heart king, ruffed the last diaThe first little pig, who Dealer: South made his house out of straw, mond, then went to the heart queen to draw the last trump, won the diamond shift in The bidding: on which he pitched his heart dummy, drew trumps, then South West North East loser. That was 10 tricks and tried to run the hearts. The unlucky break in that suit put a perfect dummy-reversal. 1♠ Pass 2◆ Pass Pass 4♠ All pass paid to his chances. 2♥ The second little pig, —BOBBY WOLFF 1-7 NORTH ♠ K 10 9 ♥KQ3 ◆A842 ♣752


For more comics & puzzles, go to






BLACK TO PLAY Hint: Win the queen.

Solution: 1. ... Qh6ch! 2. Kg4 Qh5ch! wins the queen [from Damjanovic-Najer ’10].








Dear Abby: Just how honest should you be with a friend? My friend “Frannie” did not receive a promotion in her department, and I think I know why — her appearance. The promotion would have required more interaction with clients. Frannie is bright, hard-working, has Christian ethics, a beautiful, trim figure, a wide smile and dresses well. But — she wears no makeup, doesn’t pluck her huge unibrow and wears sandals that expose her very hairy toes and the hairy tops of her feet. Many people have commented to me about her hairy feet and face, but I have not had the heart to tell her what they say. She has also been asking me why guys shy away from her. Do I say nothing, or should I offer helpful advice? Frannie’s Friend in North Carolina What you need to ask yourself before raising a sensitive subject like this is: Is it true? Is it helpful? Is it kind? From where I sit, telling Frannie what she needs to hear passes those tests. Because Frannie has been asking why men shy away from her, that’s your opening to talk to her about her grooming. Many women have bodyhair issues, but there are solutions for it. The poor woman needs the services of a cosmetologist.

emotionally supporting your husband. Not to have seen this coming was naive. The stronger you become, the easier it will be to forgive them and go on with your life, but getting there may require professional counseling. I’m recommending you start sooner rather than later. Dear Abby: My friends and I were recently discussing supermarket etiquette and hope you can provide some insight. When checking out at the grocery store and a customer is standing behind you ready to unload her basket, is it your responsibility to move the divider bar to the end of your order or should it be the person behind you? Which is more proper? Conscientious Shopper, Erie, Pa. The person unloading the basket usually places the bar to ensure that her (or his) groceries are kept separate from the person in front. There are, however, no hard-and-fast rules about it.


Dear Abby: My husband and I separated more than a year ago, but we have remained friends for the sake of our children. During our marriage, my sister moved in with us. When I moved out, she stayed on to help my husband financially, and also to help with our children. Yesterday, my husband confirmed that he’s now sleeping with my sister. I must see them almost daily and I don’t want to make a difficult situation worse. How can I get over the hurt and betrayal I feel toward them — especially my sister? How can I forgive them? Will time really heal this wound? Betrayed by My Sister It may help in your healing if you accept that your marriage ended the day you walked out the door, leaving your sister in the role of wife — contributing financially to the household, parenting the children, and I assume,

HOROSCOPE IF TODAY IS YOUR BIRTHDAY: There is probably no more vacation time left for you and that is probably a good thing because you will be hard pressed to find enough hours to keep up with your obligations in February. • CAPRICORN (Dec. 22-Jan. 19): You have an eye for details, especially in matters that detract from your opponents or adversaries. • AQUARIUS (Jan. 20-Feb. 18): Hostility hurts. Issues from the past might waste your time or cause friction with an old buddy.


• PISCES (Feb. 19-March 20): Knuckle down to your normal chores. Step up the pace because the boss is looking for results, not excuses. • ARIES (March 21-Apr. 19): You can never be sure of a sure thing. Rely on consensus from a group of like-minded individuals for the best results. • TAURUS (April 20-May 20): Avoid making key decisions. To maintain harmony, you are likely to agree to something you will regret later. • GEMINI (May 21-June 20): Mutual self-interests must be served. It might seem for a few hours today that everyone you meet has an ax to grind or only have self-preservation in mind. • CANCER (June 21-July 22): A hidden agenda is obvious. It is fine to be suspicious of others when the writing is right there on the wall. • LEO (July 23-Aug. 22): Be a grown-up. It is tempting to listen to the inner child who is having a temper tantrum. • VIRGO (Aug. 23-Sept. 22): Your precious plans are not set in granite and are not impervious to a change of heart. • LIBRA (Sept. 23-Oct. 22): Friends will probably show their true colors in a one-on-one situation. • SCORPIO (Oct. 23-Nov. 21): Revenge is a dish best served cold, they say, but you may forget that in the heat of the moment. • SAGITTARIUS (Nov. 22-Dec. 21): You can spoil a good thing if you let criticism get under your skin or if you fight rules and regulations.

07PGB06.indd 6

CROSSWORD ACROSS 1 Treks and Schwinns 6 Fitted with boots 10 Share a border 14 Accustom to hardship (Var.) 15 May in New Jersey? 16 Guitar ancestor 17 Friendly Islands, formally 18 Unwelcome obligation 19 Healthy cereal ingredient 20 Six-legged hauler 21 Certain chess piece 24 Lickety-split, poetically 26 It may be acquired on the beach 27 Apt 29 Incite 33 Licorice flavor 34 Chardonnay, for one 35 Its cap. is Albany 37 Let off some steam 38 1993 triple-platinum Frank Sinatra album 39 Took the subway 40 Word with “collection” or “critic” 41 Anatomical backs 42 OK, legally 43 Repetitive and boring 45 Nursery rhyme word in a Fitzgerald title 46 Miss an easy fly 47 Sneak ___ (look surreptitiously) 48 Trinkets

53 56 57 58 60 61 62

Then partner Bright star Ibsen character Feudal subject Dashing style Ceremonious poems “The Black Pearl” author Scott 63 Will’s opposite 64 About ready to drop 65 Walked into the shallow end

DOWN 1 Kind of blocker 2 Part of, like a practical joke 3 “Roots” character 4 Piece of work? 5 Coastal plant of the crucifer family 6 Rich quick bread 7 Suspend, as curtains 8 “Bloom County” penguin 9 Some computers 10 Lacking pigmentation 11 German town 12 Sundance Film Festival’s home 13 Camp shelter 22 Noticeably unfriendly 23 Main part of a church’s interior 25 Mosquito or mole, e.g. 27 Red-hot melted rock 28 Like a dead weight

29 30 31 32 34 36 38

News media Pro ___ (in proportion) Hardly bowlegged Entertainer Gorme Advice maven Stone paving block Necessity for an opening act? 39 Show respect to a judge

41 Long dagger with a straight blade 42 Patiently waits for the right moment 44 Pour, as wine 45 Rte. that’ll cost you 47 “... ___ of thousands!” (Hollywood hype) 48 Had all the answers

49 ___ contendere (court plea) 50 Terrible tsar 51 Botanical intersection 52 Vicinity 54 Stare amorously 55 Fuse, as metal 59 She’s “sweet as apple cider”

1/6/2011 9:02:08 PM




Knicks show interest in Nash BY HOWARD BECK New York Times Service

At some point Friday night, Steve Nash and Mike D’Antoni will gravitate toward one another, smile brightly and share a warm embrace — a biannual ritual that is always rich in sentiment and imaginative speculation. The sentiment: Nash and D’Antoni were brilliant for five years together in Phoenix, enjoying a degree of success that neither one ever had (in the NBA, at least) before they met. The speculation: Nash and D’Antoni would be equally brilliant, maybe more so, if they could reunite in New York, as the point guard and coach of the Knicks, with Amar’e Stoudemire once again dunking Nash’s passes. It is a story line that took hold from the moment that D’Antoni became the Knicks’ coach in 2008 and grew more compelling with every Suns misstep and every Knicks slump over the last two years. It will be revisited Friday, when the Knicks visit Phoenix. But Nash signed a rich extension with the Suns in the summer of 2009, and the Knicks finally landed a skillful point guard, Raymond Felton, in the summer of 2010. Felton has blossomed into a potential All-Star, and the Knicks (20-14) are off to their best start in 10 years. Notions of a dreamy reunion on Broadway should be over. Except that they are not. This week, FanHouse — citing anonymous sources — reported that the struggling Suns had not ruled out


trading Nash and that the Knicks would be interested. With one transaction, the Knicks could complete their transformation into the Suns of the East. It is as fascinating to contemplate as it is unlikely. Nash turns 37 next month

and is owed $11.7 million in 2011-12, the final year of his contract. He remains an elite playmaker and shooter, but his career is winding down. Few point guards make it to age 40, especially those who rely (as Nash does) on quickness.

Making a deal for Nash would mean giving up one or more young players — the same ones the Knicks might need in a deal for Carmelo Anthony. They do not have enough assets to acquire them both.


Heat coach weathers early storm • HEAT, FROM 8B

MOVE ON THE CARDS? This week, FanHouse reported that the struggling Phoenix Suns had not ruled out trading Steve Nash and that the New York Knicks would be interested.


never know where it’s coming from.” For the most part, Spoelstra also has pushed these players to play stout defense; Miami ranks third in average points allowed (91.9) and first in field goal percentage against (42.3 percent). “He deserves credit for getting these guys to give four, five, six efforts” on each defensive possession, TNT/NBA TV analyst Kevin McHale said, saying some teams get only one or two. One question entering the season was whether Spoelstra would treat his stars with kid gloves. Players say he has not. “If he calls out one of us, he calls out one of the big stars, too,” Carlos Arroyo said. “It’s only fair to do that. We all respect that. We can’t be sensitive when we’re trying to win a championship. You have to be professional and take it. He makes sure he lets nobody relax. Pointing at whoever makes the mistake, he’s done that. Controlling egos is very tough in this league and he’s done a great job.” And “his work ethic and professionalism are through the roof.” Off the court, Spoelstra has borrowed some of Riley’s techniques. He gives his players books and newspaper articles to inspire or educate. He gave them a 365-new-words- a-year calen-

dar. And he gave each player a DVD of the HBO World War II miniseries Band Of Brothers. James Jones and Zydrunas Ilgauskas — who did not play for Riley — said it’s the first time they have had a coach who did anything like that. “He’s always giving us material to contemplate,” Jones said. “Sometimes, it’s about sports. Sometimes, it’s about life in general. He’s unique.” Spoelstra realizes the need to connect with players on a personal level. “The more years you get in this seat, you learn more about managing personalities,” he said. “That’s where Pat was so great. Coaching in this league is more about managing personalities and motivation than it is X’s and O’s.” Besides Riley’s support, Spoelstra also appreciates the encouragement he received during the “rough stretch” in November from Orlando coach Stan Van Gundy, Houston coach Rick Adelman and Washington coach Flip Saunders. His first challenge conquered, two more await: keeping this team consistently motivated against outclassed opponents during a long season and strategizing in a playoff series against an opponent with similar talent (Boston, potentially, in a conference finals). “He has shown,” Arroyo said, “that against adversity, he can manage any situation.”

Alomar and Blyleven elected to baseball’s Hall of Fame • BASEBALL, FROM 8B

a 10-time Gold Glove second baseman, said he expected to make it. Blyleven, who played for the Minnesota Twins in half of his 22 seasons, took nothing for granted. “It’s been 14 years of praying and waiting,” he said on a conference call from Fort Myers, Fla. “I thank the baseball writers of America for, I’m going to say, finally getting it right.” When he first appeared on the ballot in 1998, Blyleven collected only 17.5 percent of

the vote. The next year, that figure dropped to 14.1 percent; a candidate must have at least 5 percent to remain under consideration, with a maximum of 15 years on the ballot. Blyleven did not receive even half the votes until 2006, his ninth year of eligibility. But many bloggers mounted a convincing campaign on his behalf, stressing Blyleven’s value beyond his mediocre .534 winning percentage. Blyleven cited Rich Lederer of BaseballAnalysts. com.

“He’s one guy that’s really brought out so many different stats than just wins and losses,” said Blyleven, who was 287-250. “As a pitcher, sometimes you can’t BLYLEVEN control wins. You can’t control losses. But what you can control is innings you pitch, if you keep your club in the game, all those things, and I think they’re brought

out a lot more today than they were even 10 years ago.” Blyleven ranks high in two categories that show a pitcher’s dominance: strikeouts (fifth, with 3,701) ALOMAR and shutouts (ninth, with 60). Every other pitcher in the top 20 in shutouts was in the Hall of Fame, as was every other eligible pitcher in the top 17 in strikeouts.

“I’m kind of a baseball geek as far as numbers,” he said. “I always looked at numbers, even as a young kid coming up. I admired Walter Johnson and Cy Young. How could one guy pitch over 7,000 innings, like Cy Young? I wanted to be like him.” Alomar’s case was more obvious. He made 12 All-Star teams in a row, from 1990 through 2001. He is the only Gold Glove winner in baseball history to finish his career with a .300 average and at least 2,700 hits, 200 home


In Spain, 2 stars not blinded by the light • SOCCER, FROM 8B

simple but heartfelt, “You can’t put a price on being loved so much in your own home.” You cannot put a price on what the game means to these two men. They are blessed with supreme talents, but we are blessed with seeing and hearing their humility. Kaka should never have played at the World Cup in South Africa last summer, because his injury was already known, the risk of breakdown already more than tested by trying to play through the pain for Real Madrid. Xavi, too, was nursed through the World Cup, as he continues to be nursed through Barcelona games. He has Achilles’ tendinitis, the almost inevitable backlash of being on the ball so often. His coach, Pep Guardiola, is still young enough to know what drives a player to give perhaps more of himself than is good for his health. Guardiola was Xavi’s predecessor as the midfield hub of Barcelona, and it was an injury to Guardiola more than a decade ago that gave the precocious Xavi the opportunity to replace him. “I played for many years here, and reached 300 games, which seemed a lot,” Guardiola said this week. “Migueli played 549 and retired at 38. Xavi is 30 years old.” He added, “I would not be surprised, if his tendons hold out, if he reaches 700 games.”

07PGB07.indd 7

Johan Cruyff, the man who coached Guardiola before Guardiola coached Xavi, chimed in with the suggestion that now was the time to recognize what a truly influential performer Xavi is. “It is now or never for Xavi and the Ballon d’Or,” Cruyff said. Cruyff, a three-time winner of the Ballon d’Or, the recognition as the player of the year, said that Xavi was better in 2010 than his two Barcelona teammates Andres Iniesta and Lionel Messi. Barcelona, incidentally, started off the new year by telling Messi to take his time to enjoy a proper Christmas break in Argentina before returning for the second half of the season in Spain. In his absence Sunday, Xavi pulled the strings, Iniesta played his part and the young Pedro, another rising star from the club’s academy, did what Messi normally does. Pedro scored twice. Barca won, 2-1, and Messi got family time. Meanwhile, in Real’s 3-2 victory Monday at its neighbor, Getafe, Cristiano Ronaldo extended his lead over Messi as La Liga’s top scorer. Kaka is only 28, and at his best, as he was when he won the 2007 Ballon d’Or, he could yet be what Madrid paid $89 million for two years ago. Kaka is capable of becoming Real Madrid’s answer to Xavi. They are the players’ players, the men who make everything tick.

runs and 450 stolen bases. Like Blyleven, he played for two World Series winners and generally excelled in October. Signed by the San Diego Padres out of Puerto Rico in 1985, Alomar spent his prime years with the Toronto Blue Jays, the Baltimore Orioles and the Cleveland Indians, reaching the playoffs with all of them. His productivity came to an abrupt halt with the Mets in 2002, and he retired in spring training 2005.

Atlantic Boston New York Philadelphia Toronto New Jersey

W 27 20 14 12 10

L 7 14 21 23 25

Pct .794 .588 .400 .343 .286

GB — 7 131/2 151/2 171/2

Southeast Miami Orlando Atlanta Charlotte Washington

W 28 23 24 12 8

L 9 12 14 21 25

Pct GB .757 — .657 4 .632 41/2 .364 14 .242 18

Central Chicago Indiana Milwaukee Detroit Cleveland

W 23 14 13 11 8

L 11 18 20 24 27

Pct .676 .438 .394 .314 .229

GB — 8 91/2 121/2 151/2


JUBILANT: The England cricket team celebrates after dismissing Australia’s Mitchell Johnson, left, for a first-ball duck on the fourth day of the fifth and final Ashes test in Sydney, Australia, on Thursday.

England on verge of series win • ASHES, FROM 8B

played extremely well. “The last two games the way they’ve bowled, they’ve made the most of all conditions whether it’s seaming and swinging, or going reverse and turning. Hats off to them. They’ve played unbelievably well. Unfortunately for us, we haven’t played up to our standard at all really.” The England seamers started to get reverse swing in the afternoon session and worked as a unit to frustrate Australia’s batsmen with disciplined line and length. Watson was first out,

inexcusably run out for 38 after a mix-up with Phil Hughes that resulted in both batsmen at the same end. Hughes (13) was caught behind off Bresnan as Australia slipped to 52-2 before tea. Anderson had rookie No. 3 Usman Khawaja (21) and stand-in captain Michael Clarke (41) both caught behind by Prior before Bresnan chimed in again to have Mike Hussey (12) caught in the gully. Tremlett took wickets with consecutive balls to remove Brad Haddin (30) and Mitchell Johnson for a first-ball duck before Siddle, who took a hat-trick in the

series-opening test at the Gabba, blocked the hat-trick ball from the lanky England paceman. Haddin tried to play a bouncer but pulled out of the shot and lobbed an easy catch to Matthew Prior. With England so close to securing victory in back-toback test matches in Australia for the first time since 1978-79, play was extended by 30 minutes to allow the bowlers time to finish it off. England allrounder Paul Collingwood announced his retirement from test cricket before the start of play Thursday, thinking the series would be wrapped up on day four.

Southwest San Antonio Dallas New Orleans Houston Memphis

W L Pct GB 29 6 .829 — 26 8 .765 21/2 21 15 .583 81/2 16 19 .457 13 16 19 .457 13

Northwest Utah Oklahoma City Denver Portland Minnesota

W 24 23 20 19 9

L 12 13 14 17 27

Pct GB .667 — .639 1 .588 3 .528 5 .250 15

Pacific L.A. Lakers Phoenix Golden State L.A. Clippers Sacramento

W 25 14 14 11 7

L 11 19 21 24 25

Pct .694 .424 .400 .314 .219

GB — 91/2 101/2 131/2 16

WEDNESDAY’S GAMES Toronto 120, Cleveland 105 New Jersey 96, Chicago 94 Orlando 97, Milwaukee 87 Philadelphia 109, Washington 97 Boston 105, San Antonio 103 Charlotte 108, Minnesota 105, OT Golden State 110, New Orleans 103 Portland 103, Houston 100 Atlanta 110, Utah 87 L.A. Clippers 106, Denver 93 L.A. Lakers 99, Phoenix 95

1/7/2011 4:52:02 AM






‘Spo has been great. When we were struggling, he weathered the storm . . . He always stayed the course. As players, we respected that. We tried to give back to him by playing great basketball.’ PEDRO PORTAL/ EL NUEVO HERALD



BY TYLER KEPNER New York Times Service

has lessened the ball-handling burden on James and Wade. • Keeping Chris Bosh exclusively at power forward, rather than several minutes each game at center. • A productive substitution pattern, in which James plays with four reserves late in the first quarter, and then goes to the bench between quarters, with Wade and Bosh often returning at that point. • A more diversified offense and having the players, especially Wade and James, move more without the ball. “Everyone has an equal opportunity to be effective on the offensive end,” James said. “You can’t just key in one player. Throughout the game, you

Roberto Alomar was 9 years old in 1977 when his father, Sandy, was traded from the New York Yankees to the Texas Rangers. Alomar and his brother tagged along to games at old Arlington Stadium, playing ball in the parking lot with the other players’ sons, including 4-year-old Todd Blyleven. Late in the next decade, Alomar embarked on a career as one of the most dynamic all-around players in baseball history. Todd’s father, Bert, was still pitching then, quietly compiling impressive statistics that have, at last, become impossible to ignore. Alomar and Blyleven were elected to the Hall of Fame on Wednesday, Alomar in his second year on the ballot, Blyleven in his 14th. Alomar received 523 of 581 votes, for 90 percent, while Blyleven finished with 463, for 79.7 percent. Candidates needed 436 votes, or 75 percent, to be enshrined. “What an amazing thing,” Alomar said on a conference call from Toronto. “I got to hit against him, saw him when I was young and now I’m getting the chance to go in the Hall of Fame with him.” Barry Larkin was third in the voting, at 62.1 percent, followed by Jack Morris (53.5 percent), Lee Smith (45.3 percent) and Jeff Bagwell (41.7 percent). In his first election after admitting steroid use, the former slugger Mark McGwire dropped to 19.8 percent, his lowest share in five appearances on the ballot. Rafael Palmeiro, who hit 569 homers but failed a drug test in 2005, received only 11 percent. Alomar and Blyleven narrowly missed induction in 2010, Alomar by eight votes and Blyleven by five. Most players who come that close are elected the next year, and Alomar,




At its worst — when the Miami Heat was stumbling at 9-8 and Erik Spoelstra was being criticized by pundits, anonymous sources and fans — there was never any assurance from above, no promise that he would keep his job. “That would have felt awkward,” he said in a private moment last week. Heat president Pat Riley “didn’t feel a need to address it. It was business as usual — meeting and talking about the team as we normally would — and that was more of a confidence builder than anything else. Pat was tremendous through that.” Contrary to the perception of some, Spoelstra’s job was never in jeopardy at that time. As one Heat

official said, Riley always believed in him, and it would have taken a disaster (several games under .500, and much further into the season) for a change to happen. Now, instead of being lambasted, Spoelstra is being lauded by his players and opponents, and even was named Eastern Conference Coach of the Month for December. Players cite his calm, measured approach, preparation and several strategic moves as key factors in this stretch of 19 wins in 20 games. “Spo has been great,” LeBron James said late Tuesday night. “When we were struggling, he weathered the storm and he kept us understanding it would take a lot of dedication, a lot of commitment. He always stayed the course. As players, we respected

that. We tried to give back to him by playing great basketball.” Dwyane Wade, sitting alongside James, issued his own endorsement: “We’ve got a great leader, and he’s helped us to be where we’re at now. He never gets too high or too low. During this winning streak, he’s been on us the whole time. He’s always preached to be humble. He did a great job helping us keep our mental [state] — continuing to preach defense and togetherness.” Spoelstra — at 40, the league’s second-youngest coach behind New Orleans’ Monty Williams — has made several moves that have paid off during this stretch: • The decision to use a natural point guard at all times, which

Alomar, Blyleven elected to Hall

Two stars not blinded by the light England on verge of rare series victory BY ROB HUGHES

Associated Press

SYDNEY, Australia — England has all but secured its first test series victory in Australia in 24 years after posting a record total and moving within three wickets of another innings victory in the final test to cap its Ashes domination. Matt Prior scored the third hundred of the England innings before the visitors were dismissed for 644 — their highest total ever in Australia — shortly after lunch Thursday. He then had a hand in five dismissals as pacemen Jimmy Anderson, Tim Bresnan and Chris Tremlett took two wickets apiece to have Australia reeling on 213-7 at stumps on the penultimate day, needing another 151 runs just to make England bat again. Allrounder Steven Smith (24) and tailender Peter Siddle (17) navigated the last 41 minutes of an extended evening session for Australia to ensure the match will go into the fifth and final day. It seems only a wash out on the last day will save Australia from an • TURN TO ASHES, 7B


unprecedented third innings defeat in the series. “That’s pretty hard to beat. At the SCG in an Ashes test, a 100 and then a few catches and we’ve got them seven down and we’re in a pretty good position to win tomorrow,” Prior said. “Being out there today with the support from the Barmy Army was absolutely fantastic and to be there with your mates on the field, it just makes it all so sweet.” England, which had already retained the Ashes by taking a 2-1 lead with an innings victory at Melbourne last week, looks certain to claim a test series Down Under for the first time since 1987. “It feels very disappointing. No doubt,” Australia opener Shane Watson said. “As a group we were trying to rebuild after Melbourne. We still had so much to play for in this game. Unfortunately, we’ve been totally outplayed again.” “There’s no doubt we’ve let ourselves down in the way that we’ve played. But there’s no doubt as well that the English have


LONDON — How easy it is to look upon the modern superstars as men who care less about the game than the wealth and celebrity it brings them. Here are two names that belie that image: Kaka and Xavi. The Brazilian Kaka played his first 15 minutes of top-class soccer on Monday since undergoing knee surgery five months ago. He looked lean, he looked sharp and he looked more than relieved. “I’ve had very bad moments,” he said later in a television interview. “I went through some very difficult moments, but at last I think it’s over. I didn’t know when I would return — or if I would return. I dedicate this to my family, above all to my wife, who knows what I went through.” The comeback is not complete. Fifteen minutes at the end of a league match is not yet confirmation that the second-mostexpensive player in Real Madrid history will recapture all of his great playmaking qualities. But merely being on the field, feeling the essence flowing back, is so obviously a joy to him. In the same week, and in the


New York Times Service

DOWN TO EARTH: Barcelona’s Xavi, at left, and Real Madrid’s Kaka, at right, are blessed with supreme talents, yet the two have kept their feet on ground. same country, Xavi broke a record held by only one other player in soccer history. He played his 550th game for Barcelona on Wednesday, eclipsing the record of the club’s legendary defender, Migueli. In a performance that set a record of 11 consecutive league victories for Barca, Xavi excelled. That

is to say he gave his usual performance. He made 151 successful passes in 90 minutes, a dozen more than the entire Levante team he was playing against. And when they honored him with a presentation at the end of the game, Xavi said something • TURN TO SOCCER, 7B

University of Michigan fires Rodriguez as coach BY NICK BUNKLEY


New York Times Service

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ANN ARBOR, Mich. — The Rich Rodriguez experiment at Michigan ended in the same room where it began, three years and 22 losses ago. Hours after firing Rodriguez, Dave Brandon, the athletic director, said that he had not selected a successor and that he would immediately begin a national search. He conceded that the candidate many alumni and fans had been

clamoring for, Jim Harbaugh, a former Michigan quarterback who just coached Stanford to its best season in modern history, was most likely headed to the NFL instead. Brandon gave no firm target for when he hoped to name a new coach, though he said that the uncertainty would have a negative effect on recruiting ahead of next month’s signing day and possibly on some current players who might be looking to transfer.

“My timetable is go fast but do it the right way,” Brandon said in a news conference. Brandon gave some indications of the type of coach he is seeking, becoming most animated when asked if he would seek a defensive-oriented coach, in contrast to Rodriguez, an innovator of the spread offense. Michigan’s defense was among the United States’ worst, giving up 52 points to Mississippi State in the Gator Bowl and beating Illinois, in

three overtimes, by an improbable score of 67-65. “There’s a thought of getting a defensive-minded everything,” he said. “I want the ball boys to be defensive minded.” Brandon, who took over the athletic department in 2010, said he decided to fire Rodriguez only Tuesday night, after the two men met for nearly four hours. Rodriguez was hired by Brandon’s predecessor, Bill Martin, to replace the retiring Lloyd Carr.

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Edition, the 07 january 2011