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Gadhafi’s forces resume air strikes


BY KAREEM FAHIM New York Times Service

mal strategy for how to deal with the cartels and no plan to develop guidelines for priests struggling with munificent killers. The Rev. Joseph Palacios, a sociology professor at Georgetown University, and a Catholic priest who has written extensively about the Mexican church, said more must be done. “This is an endemic problem,” Palacios said. “If they just issue statements and don’t analyze the roots of the situation they aren’t going to change anything.” The Rev. Robert Coogan, 58, a Brooklyn-born Catholic prison chaplain in Saltillo, said that dubious donations had become an engrained feature of the country’s religious life.

RAS LANUF, Libya — Government warplanes bombed rebel positions near this coastal city’s oil refinery on Monday, seeking to drive them further back to the east, as U.S. President Barack Obama again warned that the West was considering all its options in Libya, including possible military intervention. The airstrikes, which killed at least one person, started in the morning, sending huge plumes of smoke into the air around 10 a.m. At every sound of a jet engine, the rebels opened fire with what sounded like every weapon available, including heavy artillery and pistols. In the evening, a warplane swooped low and on two separate occasions, dropped bombs near a heavily-defended rebel checkpoint, causing an untold number of casualties. The strikes came a day after troops loyal to Col. Moammar Gadhafi stormed the town of Bin Jawwad, just to Ras Lanuf’s west, and sent the fighters holding it into retreat. But the colonel’s loyalists remained on the city’s outskirts, taking no immediate steps to recapture Ras Lanuf from the rebels, who took control two days ago in their westward push. The rebels have said they would welcome Western help in the form of a no-fly zone, and on Monday the Gulf Arab States issued a similar request, Reuters reported. Obama said Monday that the United States was conferring with its NATO allies about possible military action. “We’ve got NATO as we speak consulting in Brussels around a wide range of potential options, including potential military options, in response to the violence that continues to take place inside of Libya,” he said.




THE FEAR OF GOD: A woman walks by a church that bears a plaque announcing that it was donated by Heriberto Lazcano Lazcano, commander of the Zetas crime syndicate, in Pachuca, Mexico.


PACHUCA, Mexico — The large orange chapel here, with its towering cross, would be just another Roman Catholic church if not for a bronze plaque announcing that it was “donated by Heriberto Lazcano Lazcano” — better known as “the executioner,” commander of the ruthless crime syndicate called the Zetas. The nameplate goes on to quote Psalm 143: “Lord, hear my prayer, answer my plea.” But Mexican Catholics are the ones struggling with how to respond. Ever since the chapel’s financing spawned a government investigation four months ago, the Roman Catholic Church in Mexico has been trying to confront its historic ties to drug traf-

fickers. Long dependent on gifts, but often less than discriminating about where they come from, the church is grappling with its role as thousands die in turf wars between rich, and sometimes generous, criminals. “The chapel put the entire church in Mexico on alert,” said the Rev. Hugo Valdemar, a spokesman for the country’s largest archdiocese, in Mexico City. “As a result, our public posture has changed, and become much tougher.” The church has indeed gone further than before, with public pledges to reject “narcolimosnas,” or “narco alms,” and priests linked to traffickers. A handful of outspoken bishops have also stepped up condemnations of both the cartels and

the government’s militaristic efforts to stop them. But at the local level, the codependency of the church and the cartels often endures. Here in the middle-class neighborhood of Pachuca, where Lazcano is said to have grown up, priests still say Mass at the chapel every Sunday, arguing that the church is not responsible for determining whether the Zetas’ leader has any connection to the building that bears his name. Catholic officials have said there are other functioning chapels that they believe were built with drug money, in what some describe as money laundering for the soul. And yet, according to Valdemar — who works closely with Mexico’s conference of bishops — the church has no for-

Guantanamo tribunals can resume, Obama says BY JAMES OLIPHANT AND CHRISTI PARSONS Tribune Washington Bureau

The president said his actions Monday “broaden our ability to bring terrorists to justice, provide oversight for our actions and ensure the humane treatment of detainees”. About 170 detainees remain jailed at the prison, down from 242 when Obama took office. Shuttering the prison at Guantanamo and shifting cases to civilian federal courts was a bedrock promise of Obama’s presidential campaign, and he argued that the facility’s reputation was used a recruiting tool for terrorists. But the Justice Department’s decision in 2009 to try high-ranking al Qaeda operative Khalid Sheik Mohammed in New York City provoked outrage

WASHINGTON — U.S. President Barack Obama on Monday cleared the way for new military trials for suspected terrorists at the Navy base in Guantanamo Bay, Cuba, while the White House insisted the president still intended to eventually close the embattled facility. Obama lifted a freeze on new prosecutions under the military commission system that he put in place shortly after taking office in 2009, saying that the process, which had been heavily criticized by human-rights groups and other countries for a lack of fairness, had been revised to better safeguard • TURN TO GUANTANAMO, 2A the rights of detainees.

A wall falls in Baghdad neighborhood City behind a concrete curtain. Stores closed. Houses were abanBAGHDAD — It is just one doned. Over a mural of marshes, wall in a city of thousands — a rivers and palm trees painted on line of anonymous gray blocks the wall by U.S.-financed Iraqi running, like a scar, through one of Baghdad’s most violent neighborhoods. Built about three years ago to prevent attacks on passing military convoys, the three-mile-long blast wall here in the sprawling Shiite neighborhood of Sadr City gradually took on a life of its own, becoming an emblem of people’s anger and despair at years of killing and military occupation. The wall may have tightened security, but it also dammed off a pocket of merchants and barbershops, cloistering about 1,500 residents of one corner of Sadr BY JACK HEALY

New York Times Service

artists, residents spray-painted their own message: “Killing is the answer.” • TURN TO WALL, 2A

PROGRESS: Iraqi soldiers remove concrete blast walls in the Sadr City neighborhood in Baghdad on Thursday.


China sees positive trend in ties with U.S. BY CHRISTOPHER BODEEN Associated Press


PROTEST: Demonstrators march in Washington, calling for the closure of Guantanamo Bay prison.


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BEIJING — Buoyed by President Hu Jintao’s successful visit to Washington, China’s relations with the United States are warming again after a year of disputes over issues from Taiwan to Internet freedom, China’s foreign minister said on Monday. Yang Jiechi’s comments marked a remarkably upbeat assessment of relations between the world’s top economy and dominant military power and the rising Asian giant, whose economy overtook Japan’s last year to claim the No. 2 spot.


The sides need to “seize on the momentum, build on the progress, earnestly implement the agreement reached by the leaders of the two countries and take solid steps in building the China-U.S. cooperative partnership”, Yang said. In a wide-ranging news conference on the sidelines of China’s annual legislative session, Yang also pointed to deepening relations with Russia, investment and assistance to African nations, and stronger ties to multinational groupings such as the Association of Southeast Asian Nations.

However, his comments on U.S. ties were among his most emphatic, possibly lending hope to negotiators seeking progress on disputes over China’s massive trade surplus with the United States and accusations that it keeps its currency artificially low to boost exports. “There is now a good atmosphere in China-U.S. relations,” Yang said. “We have a full agenda in developing China-U.S. relations in the coming months.” • TURN TO CHINA, 2A


NEWS EXTRA...............3A THE AMERICAS ..........4A OPINION........................7A COMICS & PUZZLES...6B

3/8/2011 4:52:18 AM






Gadhafi’s forces drive Libyan rebels back • LIBYA, FROM 1A

Later on Monday, the U.S. ambassador to NATO, Ivo Daalder, said the group had established 24-hour surveillance of Libya with AWACS reconnaissance aircraft. Adding to the international pressure on Libya, Britain and France said they would seek U.N. authority for a nofly zone. RIA Novosti reported that the Russian foreign minister, Sergey Lavrov, said Moscow was against any form of foreign intervention in Libya, casting doubt on U.N.-backed action. But Russia is not a member of NATO. Obama also had a warning for high-ranking Gadhafi loyalists. “I want to send a very clear message to those who are around Col. Gadhafi,” he said at the White House. “It is their choice to make how they operate moving forward and they will be held accountable for whatever violence continues to take place there.” Libya’s foreign minister, Musa Kusa, dismissed Obama’s threats in a news conference in Tripoli on Monday. “He is like a little boy,” Musa said of the president. “He said we think that all the people around Moammar Gadhafi should be punished. Under what law is this and under what provision? “We are waiting for a fact-finding mission which we have requested from day one. Unfortunately there is reluctance from

the Security Council in this regard.” On Sunday, troops loyal to Gadhafi attacked rebel troops in the coastal town of Bin Jawwad using tanks, helicopters and fighter planes, and pushed them east, stalling, for the moment, hopes by the antigovernment fighters of a steady march toward Tripoli. On Monday, with the government fighters striking Ras Lanuf, residents — including many foreign workers — could be seen fleeing the city. Inside the town, on a grassy hill overlooking the sea, teenagers placed branches around an anti-aircraft gun for cover. Hamed Sardina, a retired harbormaster, drank tea with a friend nearby and said he was not planning to leave. “We’re here to defend the area,” he said, pointing to the low white homes across the street. And in case the fighting became too fierce, he owned a few boats, he said. The fighting in Bin Jawwad began Sunday morning, said rebel fighters, who had to retreat down the main coastal road under a barrage of artillery shells, missiles and sniper bullets. Outgunned, the rebels fanned out in the desert and fought back, only to be forced to retreat again. The fighting fit into the emerging, grueling rhythm of a conflict where the combatants claim no clear advantage and fight, repeatedly, over a handful of prizes.


DEFENSE: Rebel fighters fire an anti-aircraft gun at a checkpoint in Ras Lanuf, Libya, on Monday. In the east, the rebels, full of enthusiasm but short on training and organization, are trying to move toward Surt, a Gadhafi stronghold that blocks the rebel path to Tripoli. They are also fighting to hold onto the city of Zawiyah, west of Tripoli, where they have accused the loyalists of committing a massacre. Government troops, having ceded large, strategic parts of the country in recent days, are better armed but still on the defensive as they try to undo rebel gains. On Saturday, forces loyal to Gadhafi waged a heavy assault toward the center of

Zawiyah, then pulled back to close off all roads out. On Sunday, rebels in nearby towns said cellphone service to Zawiyah had been cut off completely and landline service was intermittent, making it hard to gather information. Secondhand reports through rebel networks on Sunday indicated Libyan Army tanks had once again moved into the center of the town. A correspondent for the British television channel Sky News — the only news organization present in Zawiyah for the height of the battle on Friday — reported Monday in a British news-

paper on what appeared to be a massacre. She said she had watched Gadhafi snipers killing residents at a funeral, a column of 25 tanks shelling the town for three hours and a young rebel boy learning how to fire rocket propelled grenade in defense. The correspondent, Alex Crawford, said Gadhafi forces had shot at an ambulance she was riding in. In a second attack Saturday morning, Crawford reported that government soldiers were firing randomly into buildings. “There were horrific injuries,” Crawford wrote. “A boy of 10 was hit by several bullets outside his

house. One young man came in with an antitank grenade in his thigh, the fins sticking out. He was still conscious.” She added: “An hour later, we saw the military column racing away — another attack had been beaten off. It was the third in two days. When we left, there were eight tanks destroyed or captured, and the rebels still held the centre.” An hour before dawn on Sunday, Tripoli also erupted in gunfire, the sounds of machine guns and heavier artillery echoing through the capital. It was unclear what set off the gunfire, but quickly, Gadhafi supporters took to the streets, waving green flags and firing guns into the air. Crowds converged on Green Square for a rally, with many people still shooting skyward. Refugees continued to flee to neighboring countries, sometimes with tragic consequences. The authorities in Crete said that at least three Bangladeshi evacuees from Libya died Sunday after they tried to swim from a Greek ferry toward the island. As of Friday, about 192,000 people had fled the country, according to the International Organization for Migration. Of those, 104,000 people had crossed into Tunisia and about 87,000 had fled to Egypt. More than 5,000 people are stranded at Libya’s border with Egypt, the organization said, including many Bangladeshis and SubSaharan Africans.

Guantanamo trials China sees positive trend in U.S. ties cleared to resume • CHINA, FROM 1A


among both Republicans and Democrats and damaged momentum for closing the prison. The administration’s plans to transfer some of the detainees to facilities in the United States also became highly controversial. According to the White House, procedures for the reworked tribunals will include a ban on the use of statements taken as a result of cruel, inhuman or degrading treatment, and a revamped system for handling classified information. Obama also outlined procedures in an executive order for periodic reviews of the circumstances of each suspect’s detention to determine whether the individual constitutes a significant threat to national security.

The White House’s announcement, however, included a vigorous defense of trying suspected terrorists in federal courts, suggesting that the administration is not backing away from its commitment to use the civilian criminal justice system where possible. Late last year, Congress restricted the ability of the administration to transfer terrorism suspects to the United States from Guantanamo for trial. The White House said it would seek the repeal of those restrictions. Just last week, Attorney General Eric H. Holder conceded to a congressional panel that he didn’t know whether the administration would be able to close the facility by the end of the president’s first term.

Relations have been on the upswing since Hu’s state visit in January that was widely hailed as a success. Hu received a much-coveted state banquet and formal White House welcome and the two sides managed to avoid the missteps that plagued Hu’s last visit in 2005. Yang said U.S. Vice President Joseph Biden is scheduled to visit China this summer, followed by a trip to Washington by his Chinese counterpart Xi Jinping. A series of high-level meetings on trade and diplomatic ties offer further chances to boost the relationship, he said. Yang also acknowledged lingering frictions, reiterating China’s strong opposi-

tion to arms sales to Taiwan and urging the United States to lend more support to a warming trend in relations between Beijing and Taipei. The positive climate couldn’t be more different than this time last year when China suspended military-to-military exchanges and bitterly criticized Washington over a $6.4 billion arms sale to Taiwan, which Beijing claims as its own territory. Further disputes followed over a visit to the White House by Tibet’s exiled Buddhist leader the Dalai Lama, regarded by China as a separatist intent on overthrowing Chinese rule in the Himalayan region. Google’s decision to stop censoring its search results inside China and U.S. criticism of China’s Internet

controls also heightened the tensions. Beijing has lashed out at U.S. involvement in South China Sea territorial disputes and joint war games with South Korea in the Yellow Sea. China’s relations with neighbors Japan, South Korea, and the Southeast Asian nations also have suffered in recent months, partly as a result of Beijing’s more aggressive assertions of its territorial claims and support for North Korea’s hard-line communist leadership. Yang said China would devote greater attention to those relationships in the coming months, although he asserted Japan was responsible for tensions over uninhabited islands in the East China Sea that Tokyo controls but Beijing claims. China’s assertive behav-

ior — it sent navy vessels and military aircraft closer to Japanese territory last year than ever before — and soaring economy magnifies the perceived threat from its growing defense spending, which is to rise 12.7 percent this year to $91.5 billion. However, Yang suggested that some foreign doubts about China’s intentions were born of envy over Beijing’s successes in pulling millions out of poverty, weathering the global financial crisis, and managing an economy that grew by 10.3 percent last year. “What I feel is that actually in some countries, including in some developed countries, people have much on their minds,” Yang said. “People ask themselves: What is the secret of China in making all these accomplishments?”

Baghdad neighborhood celebrates a wall’s fall • WALL, FROM 1A

But recently, a bulldozer and crane rumbled into the neighborhood and, with little fanfare, began a task that astonished the old men and children who gathered to watch from the sidewalk — they took away the wall. “We called it our Berlin Wall,” said Saad Khalef, 41, as he surveyed the newly uncovered ground where the walls had stood. Iraq’s government has been removing blast walls little by little since late 2008, trying to restore a semblance of normalcy to this bunker city of 6 million people. The tentative approach of the Arab League’s annual meeting — postponed from this month until May because of the region’s instability — has prompted Iraq to increase its efforts as it prepares to play host. The walls are coming down along the eclectic Palestine Street in eastern Baghdad, with plans being developed to tear down others in Shiite neighborhoods in the city’s north. “We’re so happy, from the bottom of my heart,” said a woman who gave her name as Um Qasim, or mother of Qasim, as she crossed the busy thorough-

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fare in Sadr City that had been bisected by the wall. “I hope that they’ll give orders to lift them all.” There is little chance that will ever happen. Baghdad remains a maze of walls, and attackers have exploited the government’s attempts to remove barriers near government offices or other high-value targets. On Sunday, government officials in the northeastern province of Diyala announced that they would remove all the walls ringing residential neighborhoods and public markets, and reopen roads that had been blockaded for three years. Security experts in the area responded warily, predicting more suicide attacks. But along Sadr City’s Gas Station Road, the dusty, prosaically named boulevard where the latest wall was being carted away, few people worried whether its removal would spur militant attacks. The neighborhood has come back to life in small and surprising ways as violence faded and the Mahdi Army, the Shiite militia loyal to the cleric Muqtada al Sadr, loosened its grip somewhat. Anything, residents said, was better than the tall slab that had cut them off from the rest of Sadr City.

3/8/2011 5:43:46 AM






Gates in Afghanistan to evaluate progress BY ROBERT BURNS Associated Press


INTEGRATION DRIVE: Principal of the Beato Angelico school, right, speaking to a class of would-be immigrants in Florence, Italy.

Italy makes language a must for immigrants BY FRANCES D’EMILIO Associated Press

FLORENCE, Italy — Svetlana Cojochru feels insulted. The Moldovan has lived here seven years as a nanny to Italian kids and caregiver to the elderly, but in order to stay she’s had to prove her language skills by writing a postcard to an imaginary friend and answering a fictional job ad. “I feel like a guest,” said Cojochru. She had just emerged from Beato Angelico middle school where she took a language test to comply with a new law requiring basic Italian proficiency for permanent residency permits following five years of legal residence. Italy is the latest Western European country turning the screws on an expanding immigrant population by demanding language skills in exchange for work permits, or in some cases, citizenship. While enacted last year in the name of integration, these requirements also reflect anxiety that foreigners might dilute fiercelyprized national identity or even, especially in Britain’s case, pose terror risks. Some immigrant advocates worry that as harsh economic times make it harder for natives to keep jobs, such measures will become more a vehicle for intolerance than integration. Others say it’s only natural that newcomers learn the language of their host nation, seeing it as a condition to ensure they can contribute to society. So far, Italy is only giving a gentle turn to the screw. Cojochru and other test-takers described the exam as easy. No oral skills were tested. AUSTRIA CRACKS THE WHIP In Austria, terms are tougher. There, where native speakers have been sometimes known to scold immigrant parents for not speaking proper German to their children, foreigners from outside the European Union need to prove they speak basic German within five years of receiving their first residency permit. Failure to do so can bring fines and jeopardize their right to stay. The government argues that foreigners who master German can better integrate and help foster understanding across cultures. But, like in Italy, critics say it’s a just a pretext for erecting barriers. “The German language is increasingly being used as a marginalization tool,” said Alev Korun, a Turkishborn member of the opposition Greens party who immigrated to Austria when she was 19. Austria’s Cabinet approved new rules requiring most immigrants to have elementary German skills before they even enter the country. They’re part of a plan to create a new “red-white-red card” — the colors of the Austrian flag — for a work permit for qualified non-EU citizens aimed at filling gaps left by an aging work force. The legislation now goes to Parliament for consideration. Critics say requiring people to speak basic German before they set foot in Austria would be an unreasonable barrier for people from poor, rural areas who can’t afford or access German classes. “I think this is a very clear form of discrimination of certain type of immigrants,” said Barbara Liegl, head of the Austrian anti-racism organization ZARA. “I see massive disadvantages for specific groups.” LEARNING FROM NEIGHBORS Terrorism pushed Britain to start strictly enforcing a requirement for English-language competency for prospective citizens. Three of the 2005 London suicide bombers were native Britons of Pakistani descent while the fourth was born in Jamaica. Since 2005, would-be citizens and permanent residency holders have been asked to prove their command of “Britishness” by answering multiple choice questions, in English, on British history, culture and law, from explaining the meaning behind the fireworks-filled Guy Fawkes Night, to knowing which British courts use a jury system. Britain’s government has pledged to dramatically cut immigration, and the language requirement is effectively a tool to put a cap on the number of newcomers, said Sarah Mulley, an immigration expert at the Institute of Public Policy Research, a London think tank. Home Secretary Theresa May, who aims to cut immigration to below 100,000 by 2015, said language tests will help weed out those who don’t plan to contribute to British life. She has singled out spouses seeking marriage visas to join English-speaking partners as a particular concern. “There is a concern about long-established communities in the U.K. who are not well integrated, for examples, some of the Pakistani [and] Bangladeshi communities, and that’s largely linked to language limitation,” Mulley added. But Mohammed Reza, a Pakistani on a student visa who is studying for Britain’s citizenship test, saw language as a path to integration. “If I’m wearing traditional clothing on my way to the mosque, everyone on the tube [subway] looks at me funny and gives me wide berth,” Reza said. “It’s hard to beat the stereotype, but speaking English is probably the most important thing for fitting in. That’s why I read as much as I can and try to learn the lingo here.”

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routes they have relied on in the past to ramp up guerrilla operations each spring. Marine Maj. Gen. Richard Mills, top commander in the southwestern province of Helmand, told reporters last week that a Taliban counteroffensive is anticipated. Mills said he expects the Taliban to try “to regain very, very valuable territory — lost over the past six to eight months.” He added that U.S. and allied forces

are intercepting “as many of the foreign fighters as we can” who come from Pakistan to attack U.S. and Afghan troops. Gates sees the spring as a potentially decisive period for U.S. President Barack Obama’s war strategy, which includes beginning to withdraw U.S. forces in July. This week’s visit is Gates’ 13th trip to Afghanistan, and probably one of his last as

defense secretary. He has said he will retire this year but has not given a date. After Afghanistan, Gates planned to fly to the Stuttgart, Germany, headquarters of U.S. Africa Command to attend a ceremony Wednesday marking the arrival of a new commander, Army Gen. Carter Ham. Gates will attend a NATO defense ministers meeting in Brussels on Thursday and Friday.

KABUL — U.S. Defense Secretary Robert Gates arrived in Afghanistan on Monday, beginning a twoday visit with U.S. troops, allied commanders and Afghan leaders to gauge war progress as the Obama administration moves toward crucial decisions on reducing troop levels. Gates planned to travel to eastern and southern portions of Afghanistan, the areas most fiercely contested by the Taliban insurgency. Defense Department spokesman Geoff Morrell told reporters flying with the Pentagon chief from Washington that Gates wants to get a first-hand feel for changes on the ground since he last was in Afghanistan in December. The United States is committed to beginning a troop withdrawal in July. But the size and scope of the pullback will depend on the degree of progress toward handing off full control to the shaky Afghan government. Morrell said Gates expects to hear from troops and commanders that U.S. and NATO strategy is making important progress against the relentless Taliban, who are thought to be gearing up for a spring offensive. U.S. commanders have been saying for weeks that the Taliban are suffering big MANDEL NGAN/GETTY IMAGES losses in territory and personnel, while being denied TAKING STOCK: U.S. Defense Secretary Robert Gates greets troops at Bagram Air the funding and infiltration Field, in Afghanistan, on Monday.

Minister questions German Muslims’ role BY JUDY DEMPSEY New York Times Service

BERLIN — Germany’s new interior minister, appointed just last week, has already managed to upset politicians, church leaders and representatives of the Muslim community by saying that Islam is not a part of the German way of life. “Islam in Germany is not something substantiated by history at any point,” the interior minister, Hans-Peter Friedrich, said at his first news conference in his new job, adding that Islam did not play a major role in German culture. The Lutheran bishop of Berlin, Markus Droege, responded on Sunday by saying he was surprised that Muslims were being singled out by some politicians in discussions of how to integrate Germany’s diverse communities. “We have a way of life — it is democratic, open and based on dialogue and hu-

man rights,” Bishop Droege told his congregation. Friedrich reiterated his views about Islam over the weekend, but he also called for a dialogue between Christians and Muslims. Successful integration “requires two things: FRIEDRICH knowledge of the social reality in Germany and a clear awareness of the Western Christian origin of our culture,” he said in a statement. Lamya Kaddor, chairwoman of the LiberalIslamic Union in Germany, said that Friedrich’s remarks were a “slap in the face of Muslims.” “Such statements are not only politically and historically wrong, I think they are dangerous,” Kaddor said. She added that Friedrich’s position would undermine

progress between Muslims and Christians that previous interior ministers had encouraged. Germany has been grappling with how best to integrate its 4 million Muslims into the society at large. The government is pushing for the children of non-German-speaking parents to develop better German language skills. But in a recent visit to Germany, the Turkish prime minister, Recep Tayyip Erdogan, urged Turkish parents who are living in Germany to teach their children the Turkish language before German. Erdogan told a crowd of more than 11,000 people in Duesseldorf that the Turks in Germany should not assimilate, but integrate. “I say yes to integration,” Erdogan said. “You should definitely integrate with the German society, but we are against assimilation. No one should be able to rip us

away from our culture and civilization. Our children must learn German, but first they must learn Turkish.” The controversy over Friedrich’s remarks coincided with the shooting deaths last week of two U.S. servicemen at the Frankfurt airport. A 21-year-old man from Kosovo was arrested in the terminal after fleeing from the shooting, and German prosecutors said they were trying to determine whether Islamic radicalism had played a role in the shootings. The German Police Federation said the shootings were the first case of homegrown terrorism inspired by radical Islamic propaganda disseminated over the Internet. Friedrich was appointed interior minister when Chancellor Angela Merkel reshuffled her cabinet in the wake of Karl-Theodor zu Guttenberg’s resignation as defense minister.

Prince Andrew’s woes distract from royal wedding BY CASSANDRA VINOGRAD Associated Press

LONDON — Less than two months before a fairytale wedding anticipated by much of the world, Britain’s royal family finds itself fighting an inconvenient distraction: revelations that Prince Andrew, the queen’s second son, is friends with a convicted sex offender, was photographed with a teenage prostitute, and has been accused of ties to Moammar Gadhafi’s Libyan regime. The Duke of York also hosted the son of the Tuni-


TROUBLED: A British lawmaker has called for Prince Andrew to quit his role as special U.K. trade representative.

sian dictator shortly before a popular uprising drove him from power — and the buildup of embarrassment has sparked calls that he be stripped of his role as special U.K. trade representative. Buckingham Palace is in damage control mode as it attempts to keep the public’s focus on the April 29 wedding between Prince William and tabloid favorite Kate Middleton, his university sweetheart. British officials have rallied to Andrew’s defense. The foreign secretary expressed his “confidence” in Andrew on Sunday, and a U.K. trade official voiced support for the prince to remain in the position, saying he does a “very valuable job.” But pressure is mounting and there is growing speculation over how long Andrew can hang on to his post. Andrew has courted trouble before: His muchpublicized divorce from Sarah Ferguson, her subsequent missteps, massive debt, a tell-all interview and a videotaped attempt to sell a U.K. tabloid access to Andrew stand in stark contrast to the glow surrounding William and Kate Middleton’s courtship and upcoming nuptials.

Since becoming a special trade representative in 2001, Andrew has also drawn criticism for reportedly taking lavish trips in his role as an unpaid trade ambassador. The latest revelations in the British media have centered on Andrew’s friendship with convicted pedophile Jeffrey Epstein and claims that Andrew also had close ties to Seif al Islam Gadhafi, one of the Libyan leader’s sons. Photos recently published in the British media show Andrew strolling in a park with Epstein — the New York billionaire jailed for soliciting underage prostitutes in Florida. Most recently, a photograph emerged showing Andrew with his arm around the waist of the teenage prostitute at the center of that case. While there has been no suggestion of any wrongdoing on the part of Andrew, the sum of events has prompted some soul-searching over whether the prince is a suitable representative for U.K. interests abroad. “The duke recognizes that his association with Jeffrey Epstein was, in retrospect, unwise,” a person familiar with the matter said, noting that it can be understood Andrew will not be photo-

graphed with Epstein again anytime soon. But that’s not placating some who say enough is enough. Last week, British lawmaker Chris Bryant claimed that Andrew had close links to Seif Gadhafi. Bryant called for Andrew to be fired, telling the House of Commons, “Isn’t it time we dispensed with the services of the Duke of York?” Buckingham Palace on Sunday rejected Bryant’s claims, saying Andrew’s interactions with the Gadhafi regime — and Tunisia’s ousted dictatorship, too — fell within the mandate of his job as special trade representative. “It was part of the British government’s engagement with Libya at the time,” a palace spokesman said on customary condition of anonymity. The spokesman confirmed Andrew met Moammar Gadhafi twice. Both meetings were of public record and should not come as news, the spokesman said, adding that Andrew is “fully committed to his role as special representative.” “It is understood that he has the support of the government behind him,” the spokesman said.

3/8/2011 1:06:11 AM






Arrest of anti-drug official riles Bolivia’s president BY CARLOS VALDEZ AND FRANK BAJAK Associated Press

LA PAZ, Bolivia — As Bolivia’s top counternarcotics official, Rene Sanabria’s loyalties straddled two worlds: one of tight cooperation with the U.S. Drug Enforcement Administration, the other dominated by an intensely nationalistic president who rose to power as a militant coca grower. In the end, it appears, Sanabria betrayed both. The retired police general was arrested last week in Panama on charges he ran a cocaine-smuggling ring while leading an elite, 15-person anti-drug intelligence unit within Bolivia’s Interior Ministry. His capture badly bruised the credibility of President Evo Morales’ policy of zero tolerance for cocaine, and can only hurt his efforts to end a global prohibition on coca leaf chewing. It offered vindication to the DEA, as Sanabria’s alleged crimes took place after Morales expelled the U.S. agency in late 2008 for allegedly inciting his autonomy-seeking opponents in eastern provinces. According to U.S. officials, the expulsion of roughly 30 U.S. drug agents allowed trafficking in this landlocked South American nation to spin out of control. In the DEA’s absence, Mexican, Brazilian, Colombian — even Russian and Serbian traffickers — have taken advantage and boosted exports from the world’s No. 3 cocaine-producing nation. Drug-related killings are on the rise and bigger, more sophisticated processing labs equipped with Colombian technology are increasing output as new actors join the trade. COCAINE ABUNDANCE This week, the U.N. International Narcotics Control Board criticized the Morales government for letting Bolivia’s crop of coca, the basis for cocaine, grow to 119 square miles, the most since 1998. U.S. State Department figures released this week put cultivation even higher: at 135 square miles. “Cocaine is resurgent in Bolivia,” said Bruce Bagley, a University of Miami professor who specializes in drug policy. “Morales has a big problem on his hands.” Morales’ critics at home were quick to seize on Sanabria’s arrest as proof traffickers now have the upper hand in Bolivia. “The DEA should come back,” Ernesto Justianino, who as deputy social defense minister was in charge of Bolivia’s counterdrug operations from 2001-02, wrote in a newspaper column. The DEA “kept police, prosecutors and judges accountable,” he said. But Morales insisted Thursday he has no intention of inviting the DEA back. He alleged “interests of a geopolitical nature” were behind the Sanabria case. “They are using police to try to implicate the government,” he said, without elaborating.

AP FILE, 2008

ACCUSED: Bolivia’s police general Rene Sanabria was arrested Thursday, in Panama. His vice minister of social defense, Felipe Caceres, suggested earlier in the week that Sanabria’s arrest was the DEA’s revenge for being expelled. The president also hinted at U.S. hypocrisy, recalling reports — denied by U.S. agencies — that U.S. agents ran guns to Nicaraguan Contra rebels in the 1980s with the proceeds of cocaine sales in the United States. However, Morales acknowledged in an interview with The Associated Press in September that Bolivia alone cannot stop the traffickers. And he has not yet found a suitable partner to match the United States either in funding or manpower. In July, Morales told foreign diplomats that traffickers routinely intercept government communications but Bolivian authorities don’t have the technological means to eavesdrop on criminals. Yet Morales spokesman Ivan Canelas defended Bolivia’s efforts this week, saying police have “arrested major narcos and encountered big drug labs without the DEA.” Last year, the government reports, 3,054 people were arrested for drug trafficking and 28 tons of cocaine seized. That’s twice the amount seized in Peru, whose coca crop is twice as big as Bolivia’s. Bolivians are expressing doubts. In several recent highprofile cases, police officers have been jailed on drug trafficking charges. In one, a prosecutor and two police officers were jailed in a town on the Brazilian border in June, charged with replacing confiscated cocaine with flour. Sanabria headed the 1,700-strong FELCN counterdrug police agency from 2007 to 2008. A police officer who has been on the force for a decade told the AP that in the wake of Sanabria’s arrest “people have stopped believing in us.” “When we’re out on missions they yell at us, ‘There go the traffickers,’ ” said the officer, who spoke on condition of anonymity for fear of losing his job. “You lose your authority”. Sanabria pleaded not guilty Wednesday in a Miami, federal court to drug trafficking. He is accused of accepting a quarter of a million dollars from undercover DEA agents posing as Colombian buyers in exchange for

protecting Miami-bound cocaine. Sanabria was ordered held without bail pending trial, and could face life in prison. U.S. prosecutors allege Sanabria and others — Bolivia has arrested three police officers who worked closely with him — made a deal in August with the undercover DEA agents to receive $250,000 for 220 pounds of cocaine that was shipped to Miami in November hidden inside a container of zinc rocks from neighboring Chile. They say agents wired the money to bank accounts in Hong Kong. Sanabria and his alleged trafficking partner, Marcelo Foronda, were en route to the Dominican Republic on Feb. 24 to discuss an additional shipment of cocaine when the two were detained in Panama and deported to the United States, according to his U.S. detention order. The DEA mounted the operation without official Bolivian cooperation and without informing the Morales government, said a U.S. official who spoke on condition he not be further identified due to the political sensitivity of the case. The official would not say whether the U.S. had information to suggest corruption in Morales’ administration reached higher than Sanabria. He said Sanabria was trafficking for at least five months, but the DEA knows little more because it had no cooperation from or contact with Bolivian authorities. DAMAGING EFFORTS Sanabria’s arrest is sure to damage efforts by Morales, the longtime president of Bolivia’s coca growers’ union, to promote traditional uses of coca leaf, a mild stimulant that Andeans have chewed for centuries to stave off hunger and counter altitude sickness. Ever since his December 2005 election, Morales has been lobbying hard for an amendment to a 1961 U.N. treaty that compels signatories to prohibit coca chewing. He has also insisted that Bolivia’s legally permitted coca crop be expanded from 46 square miles to 77 square miles. The FELCN anti-drug agency was until recently a bulwark of U.S. influence in Bolivia and was despised by Morales and other coca growers for its coca eradication campaigns in the central Chapare region near Cochabamba. “Cocaleros” frequently scuffled with FELCN agents in the 1980s and ’90s and Morales says they beat him multiple times, once leaving him unconscious. The FELCN remains Bolivia’s best-equipped police force, receiving everything from helicopters and C-130 airplanes to gasoline, jungle boots and uniforms from Washington. That is changing, however. U.S. counterdrug aid to Bolivia plummeted from about $50 million a year when Morales took office to $16 million this year.

Mexican police ambushed; 9 dead BY RICARDO GONZALEZ Associated Press

CULIACAN, Mexico — Gunmen staged a massive ambush of a police convoy transporting two prisoners in northern Mexico, killing seven officers and one of the inmates, prosecutors said Monday. Six other officers and a second prisoner were wounded in the attack, in which gunmen traveling in about 20 vehicles caught police in a crossfire, Sinaloa state Attorney General Marco Antonio Higuera said. “The patrol vehicles were destroyed. It was practically a massacre,” Higuera said.

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“Initial reports indicate there were 1,200 shell casings at the scene.” The three state police patrol vehicles were traveling to the state capital of Culiacan when they came under attack by gunmen who had apparently been lying in wait on a highway near the city of Guasave on Sunday. Higuera said the officers fought off a first attack but were later caught in concentrated fire from a larger number of vehicles. Also Monday, police in the Pacific coast resort city of Acapulco reported finding three severed heads in plastic bags outside a tunnel that

connects central Acapulco to the outskirts of the city. A note left at the scene said the beheadings were revenge for the killing of a man who was shot dead during an attempted kidnapping. Meanwhile, police announced the capture of a suspected prominent drug gang member who allegedly oversaw kidnappings, extortion, bribery and local drug distribution for a group known as the “independent cartel of Acapulco.” In recent months, Acapulco has seen a wave of organized-crime violence blamed on warring drug gangs.


REVELRY: Haitians celebrating their first carnival after last year’s Jan. 12 earthquake in Port-au-Prince.

Haiti’s carnival resumes amid capital’s ruins PORT-AU-PRINCE, — (AP) — Raucous crowds danced in the streets of the Haitian capital as the city celebrated its first Carnival since last year’s devastating earthquake forced the cancellation of the annual festivities. Sunday’s parade filed past the ruined facades of downtown shops, and the normally busy boulevard outside the collapsed National Palace was turned into a pedestrian zone for three days of revelry. Organizers erected a plywood wall to separate the Carnival zone from the huge Champ de Mars plaza, now a camp for tens of thousands of people made homeless by the quake.

Many spectators grumbled that Carnival was much smaller than in the past. Others said the city had no business holding the celebration at all. “People are living in tents, people are in misery,” 24-year-old Gerda Delcy said as he waited for his daughter to pass in the parade. “It’s not really a good time for Carnival.” Even some of the marchers shared that view. “The country is not ready for it,” said 59-year-old Nerne Karinar, who was marching in a long flowing dress, and lamenting the small size of the parade. The January 2010 earthquake killed an estimated 300,000 people and left

much of the capital in ruins. The United Nations says about 800,000 people are still living in temporary settlement camps around the capital. Herve Saint-Preux, Carnival coordinator for the city of Port-au-Prince, said organizers had a budget that was only about 20 percent of what they spent in recent years, explaining why the event was so much smaller than in the past. Despite the problems facing Haiti, local officials felt it was important to carry on with the annual celebration, he said. “People want the Carnival and if we didn’t sponsor it they would do it on their own,” Saint-Preux said.

Church in Mexico struggles to confront ties to traffickers • CARTELS, FROM 1A

He cited several instances in which Zetas offered him six to 10 times as much as the typical small donation for a baptism. While he said he refused — and now insists on providing sacraments for free — Coogan explained that for some priests, danger and poverty had made it easy to say, “Hey, the guy who owns the factory, he’s a bastard, but we take his money, so why not take the drug money?” This is especially true, he said, in a country where riches are often produced by corruption and in areas where violence has pushed legitimate donors to flee. “The church in Mexico is impoverished,” Coogan said. Some Catholic leaders have openly defended their dubious benefactors. Amado Carrillo Fuentes, who was considered Mexico’s most dominant drug trafficker until he died in 1997, was publicly praised by at least one powerful priest, who encouraged Mexicans to see the drug baron as a model of Catholic generosity. Carrillo Fuentes was also photographed traveling to Israel with two priests, including one who said he considered the trip appropriate because of the

cartel leader’s gifts to an orphanage. But the recent surge in violence has altered the dynamic. Valdemar said that dozens of priests had been quietly transferred to avoid death threats and extortion attempts from drug gangs. The Lazcano chapel, however, is a more complicated case. Despite the plaque, and Lazcano’s roots in the area, the archbishop of the local diocese, Monsignor Domingo Diaz Martinez, insisted that “whether the chapel was built dishonestly, that we cannot say.” He noted that the authorities did not appear to have finished their investigation, which federal prosecutors confirmed. More important, he said, “people in the community have asked for services, and when they ask, we go.” Many of those who attended on a recent Sunday seemed to agree with both the archbishop and the priest conducting services, the Rev. Margarito Escorcia Reyes, who said after Mass that the chapel’s financing and services should be judged separately. Outside the main door, below a banner of flowers from a recent festival, Elvira Rodriguez Lopez, 59, insisted that “the mysteries of God

are great” and that all donors should be thanked. One 33-year-old woman with enough bravery to say that her name was Natalia, said she wished the chapel had never been built because now she worried about who attended services, and who might be milling about. “I don’t go out at night, and when I see new people I’m worried about their associations,” she said. What church officials seem to have missed, she said, is that what sounds like support is partly the culture of “nadie se mete” — no one gets involved. Yes, she and others said, the community cooperated with the church at first, because no one knew who was paying. But once that became clearer, said an older woman in a blue frock who would identify herself only as Tellez, how could they have resisted? “Whether we cooperated or not,” she said, “they would have built it.” The Catholic Church, the government or the neighborhood — were they too weak to stamp out the influence of the Zetas’ commander, even by just removing the plaque? “Exactly,” Tellez said, smiling, seemingly glad someone else said it first. “Exactly.”

Van der Sloot to plead guilty of murder LIMA — (AP) — Joran van der Sloot’s lawyer says his client will plead guilty to killing a young Peruvian woman he met gambling but argue temporary insanity in a bid for a shorter sentence. The attorney for Van der Sloot, who remains the key

suspect in the 2005 disappearance of U.S. teenager Natalee Holloway on the Caribbean island of Aruba, says his client will use the “violent emotion” defense in this case. Attorney Maximo Altez says Van der Sloot became enraged and killed Stephany

Flores last May because she learned of his relation to Holloway by looking in his laptop. If the plea is accepted, Van der Sloot would be sentenced to 3 to 5 years. He is charged with first-degree murder, which carries a 15- to 35-year sentence on conviction.

3/8/2011 5:14:31 AM






Anti-abortion plans pose a dilemma for Republicans BY LAURIE KELLMAN Associated Press


LAST MISSION: Space shuttle Discovery astronauts, clockwise from top left, Alvin Drew, Nicole Stott, Steve Bowen, Michael Barratt, Steve Lindsay and Eric Boe.

Discovery leaves station for last time BY MARCIA DUNN Associated Press

CAPE CANAVERAL, Fla. — Discovery, the world’s most traveled spaceship, left the International Space Station on Monday for the last time, getting a dramatic send-off by the dozen orbiting astronauts as well as Star Trek’s original Capt. Kirk. Station skipper Scott Kelly rang his ship’s bell in true naval tradition, as the shuttle backed away on the final leg of its final journey. “Discovery departing,” he called out. Discovery is due back on Earth on Wednesday. It’s being retired after touchdown and sent to the Smithsonian Institution for display. NASA’s two other shuttles will join Discovery in retirement, following their upcoming missions. Discovery’s astronauts got a special greeting in advance of their space station departure. Actor William Shatner, who played Capt. James Kirk on the original Star Trek TV series, paid tribute to Discovery’s voyages over the decades. “Space, the final fron-

tier,” Shatner said in a prerecorded message. “These have been the voyages of the space shuttle Discovery. Her 30-year mission: to seek out new science, to build new outposts, to bring nations together on the final frontier, to boldly go and do what no spacecraft has done before.” Shatner’s words were followed by Monday morning’s wake-up music, Theme from Star Trek. It was the runnerup in a pick-the-wake-upmusic contest sponsored by NASA. The No. 1 vote-getter will be beamed up Tuesday. Discovery will have racked up nearly 150 million miles by trip’s end, accumulated over 39 missions and nearly 27 years, and spent 365 days total in space. It flew to the space station 13 times. Immediately after undocking high above the Pacific, Discovery performed a victory lap around the orbiting outpost, where it spent the past nine days. The two crews beamed down pictures of each other’s vessel, with the blue cloud-specked planet 220 miles below as the backdrop. Close-up shots showed most, if not all, of the in-

dividual compartments of the bigger-than-ever station. Live NASA TV footage showed Discovery as it flew over the Atlantic and the Sahara, and in a matter of a few minutes, over the Mediterranean and northern Italy. “It looks beautiful,” Kelly said of Discovery. He wished the six shuttle passengers a safe ride home. The two crews paid their own special tribute to Discovery, NASA’s oldest surviving shuttle, during a joint farewell ceremony Sunday. Discovery and its crew delivered a new storage compartment, as well as an equipment platform and the first humanoid robot in space. Both of the large items were successfully installed, and the shuttle astronauts even did some extra chores during their two extra days at the station. It ended up being a 13-day mission for Discovery. R2 the robot, short for Robonaut 2, has yet to be unpacked. The space station residents hope to get to it in the next week or two. The addition of the 21-foot-long, 15-foot-wide storage compartment left the space station 97 percent

complete. The complex now has a mass of nearly 1 million pounds. On the next shuttle flight, by Endeavour next month, a huge science experiment will be installed on the outside of the space station, wrapping up the U.S. contributions. Atlantis will blast off with supplies on the final shuttle mission at the end of June. NASA is under presidential direction to focus more on outer space, beginning with expeditions to asteroids and then Mars. U.S. astronauts, meanwhile, will continue hitching rides to the space station on Russian Soyuz spacecraft, at great expense. The intent is for private U.S. companies to take over those ferry operations within a few years. Mission Control, meanwhile, monitored a piece of space junk — an old rocket part — that possibly was going to stray too close to the space station on Wednesday. Experts wanted to wait until after the shuttle’s undocking, before deciding whether the complex needed to move out of harm’s way. But it was looking less likely that it would pose a concern, officials said Monday.

WASHINGTON — Restrict abortion or cut spending? The Republicans’ Pledge for America says the new majority will do both. But negotiations over the federal budget threaten to force the GOP, including its 87 House freshmen, to choose between them. It’s a lesson in congressional reality that has Republicans struggling with how to vote — and what to do — when a divided government pits pledge against pledge. “That’s a problem — and I mean, a real problem,” said Ohio Rep. Jim Jordan, chairman of the conservative Republican Study Committee’s budget and spending task force. How would he vote on a budget that cuts spending but lacks the promised abortion restrictions? Jordan winces. “We haven’t seen the finished product,” he said. The House last month passed its version of the budget that would fund the government through September. The measure would cut spending by $61 billion and prohibit federal dollars from going to Planned Parenthood as long as the organization performs abortions. It also reinstates restrictions, lifted by U.S. President Barack Obama, on government money for any organization that funds abortions in foreign countries. The abortion restrictions have almost no chance of being included in the spending plan that the Democratdominated Senate ultimately passes. That could be weeks from now despite a March 18 deadline that carries with it the threat of a partial government shutdown. A compromise that could pass both the House and Senate will contain at least a good portion of the cuts that now-GOP freshmen promised during the campaign and say their constituents loudly demand. Slashing federal spending, they insist, is their No. 1 priority. Restricting federal money for abortion providers comes a close second or third, as much a part of the GOP’s campaign “Pledge”

as spending cuts and repealing Obama’s healthcare overhaul. The new Republican majority has done plenty of fighting for what they promised, but getting their wish list through the entire Congress is a tougher task. The healthcare law repeal failed in the Senate. The House’s budget received a thorough scoffing from Senate Democratic leaders and Obama said he would veto it. House Republicans say just having their debate last month went a long way toward satisfying their campaign promises. In an emotional overnight session on the current year’s budget, the House voted 240-185 to block federal dollars from going to Planned Parenthood. There was more. The spending bill, before any amendments, reinstated a prohibition on federal money for any organization that uses its own funds for abortions performed in foreign countries. Obama lifted the restrictions in 2009. Under current law, federal dollars may not be used for abortions except in the cases of rape, incest or when the life of the mother is in danger. Pro-choice lawmakers and groups said the Republican efforts on abortion amount to an attack on women and family-planning services. Democrats make the case that while Planned Parenthood performs abortions, the group uses federal money on health services for women who can’t afford it any other way. Planned Parenthood has undertaken a formidable lobbying campaign to kick out the restrictions from the Senate bill. Watching the negotiations from the House, some social conservatives were uncomfortable even talking about how they would vote should a newly negotiated budget pass the Senate and come to the House without the antiabortion provisions. If they vote against the new version, they also would say no to spending cuts they demanded. If they vote for it, they would ditch, for now, the party’s anti-abortion promises.

With police force’s size reduced, New Jersey town feels the impact BY JOSEPH GOLDSTEIN New York Times Service

CAMDEN, N.J. — Since the city laid off nearly half its police force in January, the city’s mayor and police chief have tried to stay positive, with the police chief even suggesting that his leaner force will be a model for others facing similar circumstances. But after the layoffs of 163 police officers, the city is feeling the impact. Callers to 911 who report things like home burglaries or car break-ins are asked to file a report over the phone or at police headquarters; officers rarely respond in person. “If it doesn’t need a gun and a badge at that location,” officers are not sent, the city’s police chief, J. Scott Thomson, said last week. Residents have taken their own precautionary measures. One homeowner, Randolph Norfleet, has used this winter’s heavy snow as a deterrent to local drug dealers, shoveling each storm’s accumulation onto the footpath where the dealers lurked alongside his home. Police headquarters now sits nearly empty, its front reception window sometimes closed, as most of the department’s staff has been pushed onto the street for patrol duty. Detectives cannot devote as much time to investigations; a widely praised bicycle unit was disbanded. Even

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the canine unit lost two of its three dogs. It is too early to tell if the police layoffs have allowed more crime to occur; in the first two months of 2011, there were fewer homicides than during the same period last year. But the number of assaults involving a firearm has more than tripled to 79 from 22 over that period. The layoffs of 163 officers came at a time when the city of 80,000, long a symbol of urban blight, had finally started to feel safer, residents say. Then a $14 million deficit in the police department’s budget, combined with failed union negotiations, led to the unthinkable: laying off officers in a city that clearly

could benefit from more police, not less. The layoffs left Camden with 204 police officers, its smallest department since 1949. Forced to restructure the department after the layoffs, Thomson demoted many of his senior officers to patrol duty. As other cities reckon with budget deficits and mounting pension costs, Thomson believes other police chiefs in other cities will find themselves working under the same constraints as he now does. “I believe that as we move forward, the Camden Police Department will provide a blueprint for the rest of the nation for how to best handle these situations,” he said last week.


ARREST: Police officers handcuffing a woman in East Camden, N.J.

3/8/2011 1:26:10 AM






France’s ex-president goes on trial for corruption BY JAMEY KEATEN Associated Press

PARIS — France’s former President Jacques Chirac’s long-awaited corruption trial began Monday in Paris, decades after he allegedly used Paris city coffers to fund illegal jobs that benefited his conservative party. In a surprise move, the opening session was quickly suspended over a technical legal issue that may go to France’s highest court for a decision. The courtroom, with its gilded ceiling and ornately carved wood, was abuzz with whispers that Chirac may yet get a lastminute reprieve over two

cases that have been merged into one in the first trial of a France’s former head of state since the World War II era. The trial centers on Chirac’s time as Paris mayor between 1977 and 1995 — before he was elected president — and accusations that he and his allies misused city funds. Presiding Judge Dominique Pauthe heard arguments by the Paris prosecutor and defense attorneys over whether combining the two cases meets a crucial constitutional test. After a 21/2-hour hearing, Pauthe said his panel will

rule by Tuesday whether the matter should be sent to the Court of Cassation, France’s highest court, as requested — a move that could put off the trial for months. The trial centers on two cases: a Paris investigating magistrate has focused on claims that Chirac and his CHIRAC allies put 21 people on the City Hall payroll between 1992 and 1995 who, in fact, worked for Chirac’s RPR or allied parties. In that case, he faces charges of embezzlement and breach of trust.

The other case, in the hands of an investigating judge in the western Paris suburb of Nanterre, centers on seven bogus jobs at Chirac’s former party said to be paid for by City Hall. He is accused of illegal conflict of interest in that case. Chirac, who was not on hand for Monday’s proceedings, is on trial with nine other people — two of his former chiefs-of-staff at Paris City Hall, and seven others said to have benefited improperly from the jobs. Jean-Yves Le Borgne, law-

yer for former Chirac chief of staff Remy Chardon, argued in court that the statute of limitations had run out on the case in Paris — and that the Nanterre case was joined to it just to get around that fact. If the case is taken by the Court of Cassation, the court would have the option of sending the motion to the Constitutional Council, which judges the constitutionality of French laws. Interestingly, Chirac, because he is a former president, is a member of that council, and the former National Assembly president Jean-Louis Debre, brother of

defendant Francois Debre, heads it. A referral to the Court of Cassation would mean a temporary reprieve for Chirac that could last for days, weeks or even a year. Chirac, who had been planning on coming to court for Tuesday’s proceedings, has now put off his appearance for at least one day, according to his spokeswoman, Benedicte Brissart. She emphasized that Chirac was not behind the legal effort brought by Le Borgne’s constitutionality question. Chirac has repeatedly denied any wrongdoing.

China imposes curbs on foreign journalists Japan’s

foreign minister resigns


BEIJING — Western journalists have lately been tolerated in China, if grudgingly, but the spread of revolution in the Middle East has prompted the authorities here to adopt a more familiar tack: suddenly, foreign reporters are being tracked and detained in the same manner — though hardly as roughly — as political dissidents. On Sunday, about a dozen European and Japanese journalists in Shanghai were herded into an underground bunker-like room and kept for two hours after they sought to monitor the response to calls on an anonymous Internet site for Chinese citizens to conduct a “strolling” protest against the government outside the Peace Cinema, near People’s Square in Shanghai. In Beijing, several plainclothes officers planted themselves on Saturday night outside the home of a U.S. correspondent who was severely beaten by security officers the previous week as he sought to cover a similar Internet-inspired protest there. In a telephone interview, the correspondent said that seven officers in two separate cars had trailed him to a basketball game on Sunday, recording his trip on video the entire time. A dozen other foreign journalists based in Beijing, as well as their researchers and photographers, were visited in their homes over the weekend and repeatedly

BY MARTIN FACKLER New York Times Service


SUSPICIOUS: Policemen detaining foreign journalists in Shanghai on Sunday. warned not to cause trouble — or, as one officer put it, try to “topple the party”. The intimidation of foreign journalists is a marked shift for the Chinese authorities and a sign of the government’s resolve to head off any anti-government revolts like those that have swept the Middle East and North Africa during the past two months. Anonymous Chineselanguage posts on the Internet have called for people to

show their discontent with the central government by taking a “stroll” at 2 p.m. every Sunday outside wellknown locations in Beijing, Shanghai and several dozen other cities. Efficient mobilization of the nation’s extensive security apparatus has helped ensure that no protests have materialized. Over the weekend, the police called or visited more than a dozen foreign journalists at their homes, including

reporters and photographers for The New York Times, The Associated Press, CNN, NBC and Bloomberg News. One person said he received a knock on his door as early as 5:30 a.m. on Sunday. Another was not home when a police officer called, but a child who answered the phone was reportedly interrogated. Journalists were told to abide by the rules and warned not to report on

protests. Several journalists said over Twitter that one colleague had been ordered by the police to sign a document explicitly saying the journalist would never again report on the so-called Jasmine Revolution in China; the journalist refused. At least four journalists have reported what appeared to be the hacking of their Gmail accounts, according to the Foreign Correspondents’ Club of China.

Karzai rejects Petraeus’ apology for boys’ deaths BY ALISSA J. RUBIN New York Times Service

KABUL — The U.S. commander in Afghanistan apologized in person to the leadership of the Afghan government on Sunday for the mistaken killing of nine Afghan children in Kunar province on Tuesday, but Afghanistan’s president rejected the apology, according to a statement from the president’s spokesman. Gen. David H. Petraeus attended the Afghan National Security Council meeting held Sunday and explained

that the shooting of the boys, who were 9 to 15 years old, was a mistake and apologized to the Afghan people. In response, President Hamid Karzai said that the apology was insufficient. Civilian casualties worsen the relationship between Afghanistan and the United States, he said, according to the statement. “The people of Afghanistan are tired of these incidents and excuses, and condemnations cannot relieve their pain,” Karzai said, according to the statement. “I am asking

you on behalf of the people of Afghanistan that there be no repetition of this incident.” Civilian casualties caused by NATO troops are corrosive to the relationship between the West and the Afghans, and reinforce the Taliban’s propaganda that NATO troops do not care about the Afghan people. In fact, far more civilians are killed by the insurgents than by NATO, according to the most recent U.N. report, which said that more than three-quarters of civilian casualties are now caused

by the insurgents. However, those that are caused by NATO troops appear to reverberate more deeply because of underlying animosity about the presence of foreigners in the country. In Kabul on Sunday, a protest took place over the death of the nine boys. A larger protest was held last week in Nanglam, the capital of the district where the killing took place. The shootings occurred in a poor, mountainous area. A couple of the boys who died were the only males in their

families and were responsible for the care of their mothers and sisters. The loss of the only male means that the women will have to rely on relatives, who usually are already overburdened with their own families. A boy who was injured but survived described a helicopter gunship that hunted down the children as they gathered wood on the mountainside outside their village. The gunners apparently mistook the children for insurgents who only hours earlier had fired on an U.S. base.

TOKYO — Japan’s foreign minister resigned Monday over illegal campaign donations, dealing another blow to the struggling government of Prime Minister Naoto Kan. The foreign minister, Seiji Maehara, said he had received 250,000 yen, or about $3,000, in donations since 2005 from a South Korean resident in Japan. Campaign laws bar politicians from accepting donations from foreign citizens. Maehara announced his intention to step down at a hastily called press conference on Sunday night, a few hours after visiting Kan to convey his decision. The resignation was accepted Monday. Maehara, 48, is a young, hawkish member of the governing Democratic Party who had widely been seen as being next in line to replace Kan as prime minister. His resignation over such a seemingly minor infraction is a measure of the increasingly weak position of Kan, whose public approval ratings have fallen into the high teens. Kan, who took office in June, faces an uphill battle in Parliament to pass a series of bills related to next year’s budget before the new fiscal year begins April 1. Perhaps the most crucial of those bills is one authorizing new government bonds to finance the Japanese government’s huge deficits. If he fails, Kan could be forced to call a new election or resign, which would make him Japan’s fifth prime minister in a row to be in office for a year or less. The succession of weak leaders has hobbled Japan’s efforts to deal with chronic economic stagnation, a ballooning national debt and a rapidly aging population. It was unclear who would succeed Maehara. On Monday, Yukio Edano, the chief Cabinet secretary, was asked to temporarily take up as foreign minister.

Parts of quake-hit New Zealand city to be abandoned and demolished WELLINGTON, New Zealand — (AP) — Some 10,000 houses and several hundred commercial buildings in Christchurch will have to be demolished because of earthquake damage, while some parts of the city will have to be abandoned altogether, New Zealand’s leader said Monday. The magnitude 6.3 temblor that hit Feb. 22 shattered homes, heritage buildings and office blocks, and caused 166 confirmed deaths. Officials expect the toll to rise to more than 200 as rescuers continue to search for bodies in the rubble. Prime Minister John Key said some 10,000 houses will have to be demolished in the city, including 3,300 that were damaged by an earlier magnitude 7.1 quake on Sept. 4 that caused far less damage. Several hundred

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commercial buildings in the downtown area also will have to be bulldozed, he said. “Potentially there are some . . . areas of Christchurch which will need to be abandoned and we will have to provide other alternatives for people to live in because the land has been so badly damaged, we can’t fix it — certainly not in a reasonable time frame,” he said. Earthquakes can cause sections of earth to liquefy and push up to the surface as watery silt, a process called liquefaction. In Christchurch, 260,000 tons of silt has already been scraped away. “There are some parts of Christchurch that can’t be rebuilt on” due to damage from liquefaction, Key told reporters. He said modular homes

will be brought in to provide temporary housing for some of the many thousands of displaced. Work crews are still clearing rubble from the earthquake, which badly hit the downtown area and cut water and power services across the city. Almost all electricity supplies have been restored, but residents in the city are being told to boil tap water because of the risk of contamination. Officials say some 70,000 people — one-fifth of Christchurch’s population of 350,000 — have left the city temporarily as a result of the quake. A national memorial service is planned for March 18, and Key said the openair service in a city park MARTIN HUNTER/GETTY IMAGES could attract up to 100,000 people. DEBRIS: Shops damaged by the earthquake in Christchurch, New Zealand.

3/8/2011 3:54:42 AM






What happens when anger subsides? BY CHARLES M. BLOW New York Times Service

he Tea Party is synonymous with anger. Anger defined it. Anger fueled it. Anger marred it. Anger became its face and its heart. But anger is too exhausting an emotion to sustain. A poll released Thursday by the Pew Research Center found that anger at the government among Tea Party supporters fell by 40 percent from Sept. 2010 to this month. Furthermore, anger among Republicans fell by more than half, and anger among whites, the elderly and independents fell by 40 percent or more.


On the other hand, the percentage of Tea Party supporters who said that they trusted the government always or most of the time doubled from last March to this March, and the percentage of Republicans saying so nearly doubled. In fact, the percent of both Republicans and independents saying so is now higher than it has been since January 2007. Less anger? More trust? What happened? The midterms happened, that’s what. Elections have a way of cooling passions, especially when voters get what they want. (Remember how lethargic many Democrats became after November 2008?) Electoral

success not only satisfies, it pacifies. The enormous gains by Republicans during the midterms assuaged much of the country’s grief. The pressure began to subside. The novelty dimmed. The urgency evaporated. Yet Tea Party leaders are still sniping from the sidelines, holding politicians to overreaching promises made when the electorate was still stewing. Judson Phillips, founder of the Tea Party Nation, wrote a post on its website this week saying the House speaker, John Boehner, looks “like a fool” and should face a primary challenge in 2012 for not pursuing enough spending cuts this year. For these Tea Partiers, any

concession is a crime worthy of execution. A September Pew Poll found that only 22 percent of those who identify with the Tea Party admire political leaders who make compromises. This is not the way the rest of the country feels. Fifty-five percent of Democrats and 36 percent of Republicans said that they admired politicians who compromise. Staunch Tea Partiers seem to be guided by the worst kind of fundamentalist political extremism — immutable positions derived from a near-religious adherence to self-proclaimed inviolable principles. This could well be their undoing.

During the right’s season of anger, passion and convictions galvanized Tea Party supporters into an army of activism. But the vehicle is outliving its fuel. The movement is losing momentum. In fact, Tea Party-backed governors like Scott Walker in Wisconsin could be providing the rallying cry on the left to pick up the mantle of anger and send the momentum back the other way. If Tea Party leaders continue to operate as if anger is still a major part of their arsenal and Republican politicians continue to feel pressured into untenable positions, Democrats could enjoy their very own Charlie Sheen-ism come 2012: “Winning!”

Another look at the clash of civilizations nations, have multiple authentic selves. In some circumstances, one set of identities manifests amuel Huntington was one itself, but when those circumof the United States’ greatest stances change, other equally aupolitical scientists. In 1993, he thentic identities and desires get published a sensational essay in activated. Foreign Affairs called The Clash For most of the past few deof Civilizations? The essay, which cades, people in Arab nations became a book, argued that the were living under regimes that post-Cold War would be rule by fear. In these cirmarked by civilizational cumstances, most people conflict. shared the conspiracy Human beings, Huntingmongering and the politton wrote, are divided along ical passivity that these cultural lines — Western, regimes encouraged. Islamic, Hindu and so on. But when the fear There is no universal civilessened, and the opporlization. Instead, there are tunity for change arose, these cultural blocks, each BROOKS different aspirations within its own distinct set were energized. Over of values. the past weeks, we’ve seen Arab The Islamic civilization, he people ferociously attached to wrote, is the most troublesome. their national identities. We’ve People in the Arab world do not seen them willing to risk their share the general suppositions of lives for pluralism, openness and the Western world. Their prima- democracy. ry attachment is to their religion, I’d say Huntington was also not to their nation-state. Their wrong in the way he defined culture is inhospitable to certain culture. liberal ideals, like pluralism, indiIn some ways, each of us is like vidualism and democracy. every person on earth; in some ways, each of us is like the memAssessing the Arab world bers of our culture and group; Huntington correctly foresaw and, in some ways, each of us is that the Arab strongman regimes unique. were fragile and were threatHuntington minimized the ened by the masses of unem- power of universal political valployed young men. He thought ues and exaggerated the influthese regimes could fall, but he ence of distinct cultural values. did not believe that the nations It’s easy to see why he did this. would modernize in a Western He was arguing against global direction. elites who sometimes refuse to Amid the tumult of regime acknowledge the power of culchange, the rebels would selec- ture at all. tively borrow tools from the But it seems clear that many West, but their borrowing would people in Arab nations do share a be refracted through their own universal hunger for liberty. They beliefs. They would follow their feel the presence of universal huown trajectory and not become man rights and feel insulted when more Western. they are not accorded them. The Muslim world has bloody Culture is important, but unborders, he continued. There derneath cultural differences are wars and tensions where there are these universal aspirathe Muslim world comes into tions for dignity, for political sysconflict with other civilizations. tems that listen to, respond to and Even if decrepit regimes fell, he respect the will of the people. suggested, there would still be a fundamental clash of civilizations The momentum of change between Islam and the West. Finally, I’d say Huntington The Western nations would misunderstood the nature of hisdo well to keep their distance torical change. In his book, he from Muslim affairs. The more describes transformations that the two civilizations inter- move along linear, projectable mingle, the worse the tensions trajectories. will be. But that’s not how things work Huntington’s thesis set off a in times of tumult. Instead, one furious debate. But with the his- person moves a step. Then the toric changes sweeping through next person moves a step. Pretty the Arab world, it’s illuminating soon, millions are caught up in to go back and read his argument a contagion, activating passions today. they had but dimly perceived just In retrospect, I’d say that Hun- weeks before. They get swept up tington committed the Funda- in momentums that have no cenmental Attribution Error. That tral authority and that, nonetheis, he ascribed to traits qualities less, exercise a sweeping influthat are actually determined by ence on those caught up in their context. He argued that people tides. in Arab lands are intrinsically I write all this not to denigrate not nationalistic. He argued that the great Huntington. He may they do not hunger for plural- still be proved right. The Arab ism and democracy in the way world may modernize on its own these things are understood in separate path. the West. But it now appears as But his mistakes illuminate though they were simply living in useful truths: that all people circumstances that did not allow share certain aspirations and that that patriotism or those spiritual history is wide open. The tumult hungers to come to the surface. of events can transform the traits It now appears that people in and qualities that seemed, even these nations, like people in all to great experts, etched in stone. BY DAVID BROOKS

New York Times Service

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The new Middle East’s old dangers BY MICHAEL SCHEUER Special to The Washington Post

he rush in the West to proclaim the advance of democracy in the Arab world has led to the propagation of an illconceived and dangerous corollary: that the revolts in the Middle East and North Africa also mark the irrelevance of al Qaeda and other Islamist militant groups. “Al Qaeda Sees History Fly By,” declared the New York Times. “Uprisings Put al Qaeda on Sidelines,” asserted the Wall Street Journal. And Western politicians, academics and even intelligence specialists agreed that, with peaceful, pro-democratic change afoot in the Middle East, the world has moved beyond al Qaeda, leaving Osama bin Laden writhing in the dust. If only that were true. Since bin Laden declared war against the United States in 1996, al Qaeda’s main goals have included the destruction of the Arab world’s tyrannies and of Israel. The events of recent weeks only move al Qaeda closer to those objectives. Today, the dictatorships of Zine al Abidine Ben Ali in Tunisia and Hosni Mubarak in Egypt are gone. Yemen’s President Ali Abdullah Saleh is little more than the mayor of his capital city of Sana’a. And Col. Moammar Gadhafi may be on his way out in Libya, unless some knee-jerk U.S.-led intervention saves him by refocusing Libyan and other North African Islamists on what they consider an infidel threat greater than Gadhafi. As for Israel, the fall of Mubarak — and the unsealing of Egypt’s border with Gaza — pose a security disaster equal to the destruction of Saddam Hussein’s regime in Iraq. Israel’s two anti-Islamist shields to the east and to the west are now history. All of this amounts to an enormous strategic step forward for al Qaeda. That these victories have come with virtually no investment of manpower or money by the terrorist network, and with self-defeating applause from the Facebook-obsessed, Twitteraddled West, only makes them all the sweeter for bin Laden. Peering into the future, the autocrats’ probable successors likewise offer abundant good news for al Qaeda and kindred groups. In Egypt, Tunisia, Libya, Yemen and any other nation with a U.S.supported tyranny that sinks in


the weeks and months ahead, the role of Islamist groups will become larger — and over time perhaps dominant — if only because the populations in play are almost entirely Muslim and because Islamist groups have the most effective nationwide infrastructures to replace the old guard. And most do and will receive funding, openly or covertly, from always generous donors in Saudi Arabia and other oil-rich Sunni gulf states. Each new regime is likely to host a more open, religion-friendly environment for speech, assembly and press freedoms than did Mubarak and his ilk. So it will be easier for media-savvy Islamist groups — whether peaceful or militant — to proselytize, publish and foment without immediate threat of arrest and incarceration. Indeed, Washington and its Western allies will dogmatically urge the new governments to maintain such freedoms, even as the Islamists capitalize on them. The Islamists will follow the formulas for gaining power and then governing that are detailed in the Koran and the Sunnah, the Prophet Mohammed’s sayings and traditions. Western experts have long failed to recognize these documents as Islam’s equivalent to the Declaration of Independence, the Constitution and the Federalist Papers. In Egypt, for example, governance based on them would be far more comfortable and culturally appropriate than anything opposition leader Mohamed ElBaradei and his followers could offer. The blessing of the Arab revolts for al Qaeda and its allies also can be seen in the opening of prisons across Egypt, Tunisia and Libya. In Egypt alone, the news media are reporting that at least 17,000 prisoners have been freed. Many of those released are not thieves and murderers, but Islamist firebrands that the regimes had jailed to protect their internal security — at times even at the request and with the funding of Washington and its allies. Indeed, many were incarcerated as a result of quiet cooperation between Western and Arab intelligence services; their release is a major setback for these efforts. So al Qaeda and like-minded groups are now being replenished by a steady flow of pious, veteran mujaheddin, each of whom will never forget that U.S. and other Western funds helped keep them jailed by Arab tyrants.

The revolts also mean that the United States and its Western allies must take on a far greater share of the counterterrorism operations that they previously conducted with the help of Arab regimes. The days of Mubarak, Saleh, Gaddafi and Ben Ali doing the dirty work for U.S., European and Israeli counterterrorism efforts are over. Soon it will be U.S. and Western special forces and intelligence services that will be ordered to capture or kill militants in Muslim lands — individuals that our tyrannical friends used to dispose of for us. How tragic that in the war being waged against the United States by al Qaeda and its allies precisely because of Washington’s relentless intervention in the Islamic world, the U.S. government will now be forced to intervene even more — or sit on the sidelines and watch al Qaeda build or expand bases from which to threaten U.S. security. Of course, open and vociferous participation by Islamists in the demonstrations in Cairo, Tunis, Tripoli and elsewhere would have earned a lethal and Western-supported response from Mubarak, Ben Ali and Gadhafi. So al Qaeda, the Muslim Brotherhood and other groups simply used a talent that long ago atrophied in the West — the ability to keep their mouths shut. As usual, the West wrongly concluded that silence connotes not strategy, but impotence and irrelevance. Bin Laden and his peers are counting on the fact that the uprisings’ secular, pro-democracy Facebookers and tweeters — so beloved of reality-averse Western journalists and politicians — are a thin veneer across a deeply pious Arab world. They are confident that these revolts are not about democratic change but about who, in societies where peaceful transfers of power are rare, will fill the vacuum left by the dictators and consolidate power. These men also know that the answer to that question will ultimately come out of the barrel of a Kalashnikov, of which they have many, along with the old tyrants’ weapons stockpiles, on which they are now feasting. Michael Scheuer, chief of the CIA’s Osama bin Laden unit from 1996 to 1999, is an adjunct professor of security studies at Georgetown University. He is the author of the new biography Osama bin Laden.

3/8/2011 1:37:55 AM








A still looks over MAN his shoulder in Mexico IN THE SHADOW OF FEAR: Jose Antonio Zuniga stars in the documentary Presumed Guilty, about his imprisonment for a murder he did not commit.

BY ELISABETH MALKIN New York Times Service

MEXICO CITY — Ever since he was exonerated for a murder he did not commit and was released from prison, Jose Antonio Zuniga has tried to disappear. He sold his car, so nobody could track his address. He works at home fixing computers, but only for friends. He has no bank account. “It sounds absurd, but I don’t exist,” he said. Absurd, indeed, because in the past couple of weeks, hundreds of thousands of Mexicans have watched Zuniga’s ordeal unfold on movie screens, turning him into a reluctant symbol of the failings of Mexico’s legal system. As the star of a documentary, Presumed Guilty, that has become a hit here, Zuniga, 31, tells much of his own story as the camera tracks his time in prison and records the retrial that ultimately led to his release. The film puts Mexico’s secretive courts on full display for the first time. With the collaboration of the court’s grimacing judge and its simpering prosecutor, its threatening police officers and its stilted procedures, the criminal justice system seems to manufacture Zuniga’s guilt, even though the evidence points toward his innocence. Now a free man, Zuniga,

or Tono to everybody who knows him, is fearful that somebody may take revenge for the film. But just as he seeks protection in the city’s anonymity, he is obsessively recording his presence. He stands in front of security cameras and saves supermarket receipts, anything to prove where he was at any moment — in hopes of establishing an iron-clad alibi should he ever find himself in front of a judge again. “I don’t know if it’s a delirium of persecution,” he said. “But getting out of there, you don’t trust the police, you don’t feel calm, out on the street. There are some things you have lost.” On Dec. 12, 2005, three policemen grabbed Zuniga as he was crossing the street in Iztapalapa, a warren of working-class neighborhoods jumbled at the city’s eastern edge. After two days in a holding cell, he was told he was being charged with homicide and sent to prison. “You get to jail and begin to realize that nobody is interested in what you have to say,” Zuniga said. “Nobody is interested whether you have proof that it wasn’t you. Then you begin to realize that you’re a pattern, a number, a statistic.” He was sentenced to 20 years in jail based on the testimony of a single

17-year-old eyewitness, a cousin of the victim, Jose Carlos Reyes Pacheco, a young man shot to death in broad daylight in a gang-ridden section of Iztapalapa. The Mexico City judge in the case — there are no juries in Mexico — convicted Zuniga despite tests showing that he had never fired a gun. The judge also disqualified the testimony from all the witnesses who said they saw Zuniga throughout the day of the murder working his market stall, where he repaired computers and installed software. The film about his case unrolls almost like fiction, with unexpected twists, a happy ending and a rap soundtrack composed by Zuniga and his friends. But while the documentary “lends itself to heroes and villains”, the “real challenge is for people to understand that the villain is the system and the institutional design”, said Layda Negrete, half of the husband-and-wife team of lawyers who made the film. “To understand that we shouldn’t fire the judge, but change the whole structure in which the judges operate.” The reaction to the film has already begun. On Wednesday, a federal judge ordered the film to be pulled from movie screens temporarily in response to a com-

plaint by the witness in the case, Victor Daniel Reyes, who argued that he was filmed without his consent. The documentary captures Reyes, who has trouble understanding much of the legal language and frequently looks at the arresting officers for reassurance, as he eventually recants during the retrial. Mexico’s deputy interior minister, Hector Villarreal, said Thursday that the federal judge’s ruling was confusing and that the film would likely continue in cinemas while officials asked the judge to clarify her decision. Lucid and introspective, Zuniga is a sympathetic protagonist. But the film has also resonated so strongly here because its depiction of the police and courts lays bare the weak links in Mexico’s effort to build the rule of law and fight organized crime. That is supposed to be changing. In 2008, as part of the government’s battle against drug cartels, Mexico began a sweeping overhaul of its criminal justice structure. As the reforms are phased in over eight years, Mexico’s federal and state courts are expected to replace their paper-choked procedures with oral trials. The police have been given more clearly defined investigative responsibilities. The changes also add safeguards

to guarantee a defendant’s right to due process and the presumption of innocence. A few states have moved ahead quickly with their reforms, but most others, and Mexico City, are still in the early stages. Negrete, and her husband and co-filmmaker Roberto Hernandez, have proposed several measures aimed at making trials more transparent: videotaping police interrogations and trials; conducting lineups; and ending the practice of placing the defendant behind a barred window during the trial. That is where the audience sees Zuniga during his retrial. With the impassioned help of his wife, Eva Gutierrez, Zuniga won a new trial after the filmmakers discovered that his lawyer in the first one had faked his license. But the catch was that Zuniga would face the same judge, Hector Palomares, who convicted him before. The filmmakers pulled all their strings and won permission to film the retrial, bringing the camera into the courtroom, which is nothing more than a cramped neon-lighted office attached to the prison. At the proceeding, everybody clusters around a small table, while Zuniga watches from his tiny holding cell. It is from behind those

bars that Zuniga cracks his own case. Mexican law gives defendants the right to question their accusers, and Zuniga had prepared for that moment, working to recover the confidence that prison had sucked out of him. In the filmed retrial, Zuniga looks squarely at his accuser, Reyes, repeating his questions until Reyes haltingly admits that he never saw Zuniga kill the victim. With the prosecution’s only evidence in tatters, release seemed a formality. But it was not. The judge convicted and sentenced him again. Zuniga recalled thinking at that moment: “This trial was worth the trouble. People will be able to see it and ask themselves if this is justice. So the fact that I was sentenced to 20 years again seemed to make sense. Maybe we will be able to change things.” Zuniga’s luck finally turned after the filmmakers persuaded one of the three appeals magistrates who reviewed the case to look at the trial video. Convinced of “reasonable doubt,” the magistrate persuaded his two colleagues to release Zuniga. Still, he cannot return to his old life, fearful that somebody angry about the documentary might find him. But for now, he feels, the newfound attention protects him.

Yonamine, the man who changed Japanese baseball, dies BY BRUCE WEBER New York Times Service

Wally Yonamine, who was the first U.S. citizen to play professional baseball in Japan after World War II, has often been compared to Jackie Robinson for “integrating” the Japanese game. When he made his debut for the Yomiuri Giants in 1951, Yonamine was reviled by fans and players alike, who resented his otherness, just as Robinson had been vilified four years earlier when he joined the Brooklyn Dodgers. At a time when anti-U.S. sentiment was rife in Japan — memories of Hiroshima and Nagasaki were still fresh — Yonamine endured catcalls and worse. Rocks and bottles were hurled at him from the stands. The Hawaiian-born son of Japanese parents, he was not only the enemy, he was a traitor. And like Robinson, Yonamine overcame the prejudice and became a beloved star player in Japan, a threetime batting champion. His biographer, Robert K. Fitts, saw him as even more, titling his 2008 book about him Wal-

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ly Yonamine: The Man Who Changed Japanese Baseball. Yonamine died Monday in Honolulu at 85. Fitts said the cause was prostate cancer. Yonamine, he said, was a modest man who never really accepted the comparison to Robinson. “Although I had it rough, Jackie Robinson had it much rougher,” Fitts’ biography quoted him as saying. “You see, my skin is yellow just like the Japanese.” Remarkably, Yonamine was a pioneering athlete in two sports and in two countries. A speedy running back — 5 feet 9 inches and 180 pounds — he starred for a football team in the Army and, after his discharge, an amateur team in Hawaii, impressing professional scouts enough that he signed with the San Francisco 49ers of the All-America Football Conference, a post-World War II rival to the National Football League. (He never went to college, though he turned down at least one football scholarship, to Ohio State.) The 49ers, who joined the NFL in 1950, say that Yonamine was the first AsianAmerican to play pro football.


RESILIENT: As the first U.S. player in Japan’s

professional baseball after the World War II, Wally Yonamine, right, endured catcalls and resentment from the sport’s lovers. In his one season with the team, in 1947, he had 19 carries for 74 yards and caught three passes for 40 yards, playing just a year after the last of the World War II internment camps for JapaneseAmericans was closed down. (In Hawaii, a U.S. territory then, he and his family had been spared the internment.) His football career ended

during the offseason, when he broke his wrist playing in an amateur baseball league in Hawaii, but his gifts as a hitter and an outfielder had been recognized by Lefty O’Doul, a former major leaguer who managed a minor league team, the San Francisco Seals, and was an advisor to the Yomiuri Giants. After playing for a year for

a Seals affiliate in Salt Lake City, Yonamine took O’Doul’s advice and moved to Japan in 1951. A leadoff hitter who sprayed the ball, he hit .311 over 12 seasons in Japan, and when his playing days ended, he was a coach and manager for several Japanese teams until his retirement in 1988. He was elected to the Japan Baseball Hall of Fame in 1994. Yonamine won over the suspicious and hostile fans as well. In fact, he may have inspired less controversy by being a U.S. player than he did by his fiercely competitive play. In his debut for the Giants, he bunted for a hit in his first atbat, a show of daredevilry that became his trademark. To the orderly and respectful game as the Japanese played it, Yonamine brought what was considered bad behavior: hustling to beat out a sacrifice bunt, sliding hard to take out the pivot man on a double play, expressing outrage at the umpire. In 1956, Yonamine’s nose-to-nose encounter with a first base umpire was international news. “The argument got thousands of words in Japanese sports

pages,” The Associated Press said, “but as in the United States, Yonamine didn’t win his point.” He had just transferred his football ferociousness to baseball, Yonamine explained. “On the field he was like Pete Rose, hustling all the time, running people over,” Fitts said. “He introduced the hook slide and drag bunt. The Japanese were appalled by it, but then they slowly started adapting it themselves, because they saw it won games.” Kaname Yonamine was born on June 24, 1925, in Olowalu, a village on the island of Maui, where his father, an Okinawan, had moved to find work in the sugar cane fields and met his mother, whose family was from Hiroshima. (He adopted the nickname Wally in high school, and it eventually became his legal name.) His survivors include his wife, the former Jane Iwashita, whom he married in 1952; two daughters, Amy Roper and Wallis Yamamoto, both of Los Angeles; a son, Paul, of Tokyo; and seven grandchildren.

3/8/2011 3:49:18 AM



LVMH to take control of Italy’s Bulgari




S&P 500











Stocks slide as oil prices continue to climb

BY MICHAEL J. DE LA MERCED New York Times Service

pump up the economy mean the market’s gains are an illusion. But a range of measurements suggests the market isn’t in the midst of a bubble now. Instead, the stock market may simply be back to normal. “The last two years were the great giveaway,â€? says Stephen Lieber, the chief investment ofďŹ cer

LVMH Moet Hennessy Louis Vuitton, the French luxury conglomerate, said Monday that it would take control of Italy’s Bulgari in an all-share deal, adding another high-end brand to its formidable stable. Bulgari’s eponymous controlling family has agreed to exchange its 51 percent stake in the jeweler for 16.5 million LVMH shares, making it the second-largest family shareholder in the group. The family will also gain two seats on LVMH’s board, the company said. “We found in Bernard Arnault and the Group he has built all the elements that are required to guarantee the long term future of Bulgari,â€? Paulo and Nicola Bulgari, chairman and vice chairman of the company, said in a joint statement, referring to the head of LVMH. Bulgari’s chief executive, Francesco Trapani, whom Arnault called “the driving force behind Bulgari’s development over the last twenty years,â€? will join LVMH’s executive committee, as well as lead the company’s expanded watches and jewelry business. LVMH also announced a tender offer of ¤12.25 ($17.16) per share to acquire the remaining shares of Bulgari. Bulgari’s shares closed on Friday at ¤7.59 on the Borsa Italiana, giving it a market value of about ¤2.29 billion. With more than 60 brands — a burnished list that also includes Christian Dior, Fendi and C’line — LVMH is widely regarded as an extremely powerful force in fashion and luxury, offering items ranging from Louis Vuitton handbags to Dom Perignon champagne. And it has beneďŹ ted from a resurgence in the high-end consumer goods market, as its sales rose 19 percent last year to more than ¤20 billion. Its proďŹ t jumped 73 percent to ¤3 billion as well.




NEW YORK — Stocks fell Monday as higher oil prices weighed on the market. Oil hit a two-year high early in the day, nearing $107 a barrel, after forces loyal to Libya’s leader Moammar GadhaďŹ launched airstrikes against opposition ďŹ ghters at an oil port. Benchmark West Texas Intermediate crude gained $1.02 to settle at $105.44 per barrel. The Dow Jones industrial average fell 79.85 points, or 0.7 percent, to close at 12,090.03. The Standard & Poor’s 500 index fell 11.02 points, or 0.8 percent, to 1,310.13. The Nasdaq fell 39.04 points, or 1.4 percent, to 2,745.63. The market has been shaken in recent weeks by the uprising in Libya and its effect on oil prices. A sustained rise in the price of oil could hurt the economic recovery by raising manufacturing and transportation costs. Rising crude prices have pushed U.S. gasoline prices higher. Pump prices have jumped an average of 39 cents per gallon since the Libyan uprising began in mid-February, forcing motorists to pay an additional $146 million per day for the same amount of fuel. Stocks had started higher on news of two corporate deals. Hard drive maker Western Digital jumped 16 percent after announcing plans to buy Hitachi Global Storage Technologies for $4.3 billion. French fashion conglomerate LVMH Moet Hennessy Louis Vuitton says it will buy Italian jeweler Bulgari for $6 billion. Investors fear that oil prices could surge even higher if the unrest in the Middle East and North Africa spreads to major oil-producing countries like Saudi Arabia. “The market is going to have to sort out what’s fact and what’s rumor,â€? said Quincy Krosby, market strategist for Prudential Financial. “They are saying, ‘How high can the prices go, and more importantly for how long.’ â€? All three indexes have lost more than 1 percent so far this month. The dollar rose, as did utility companies. The utility company index within the S&P 500 gained 0.4 percent even though the overall index declined. The CBOE Market Volatility Index jumped 8 percent to 20.66, a sign that investors expect stock trading to become more turbulent. Starbucks rose 1.4 percent after chief executive Howard Schultz told the Wall Street Journal the company is looking for companies to acquire. McDonald’s rose 0.3 percent, the biggest gain among the 30 companies that make up the Dow average. Alcoa fell the most, 2 percent. More than three stocks rose for every one that fell on the New York Stock Exchange. Consolidated trading volume was 4.2 billion shares.

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AT WORK: Traders go about their business at the New York Stock Exchange.




Associated Press

The Standard & Poor’s 500-stock index is in its fastest climb since 1955, doubling since the market bottomed on March 9, 2009.

Federal Reserve Chairman Ben Bernanke ďŹ elded the usual questions about ination, tax cuts and government debt during a trip to Congress last week. Then a new question popped up: is the Fed creating another bubble in stock prices? Bernanke told the Senate Banking Committee he saw “little evidenceâ€? that was happening. But he cautioned: “Of course, nobody can know for sure.â€? That’s the problem with bubbles. You only know you’re in one when it pops. This week is the second anniversary of the bull market that followed the ďŹ nancial meltdown. The Standard & Poor’s 500-stock index is in its fastest climb since 1955, doubling since the market bottomed on March 9, 2009. In January and February alone, it’s up 5.5 percent, the best start to a year since 1998. Stock bubbles are famously hard to deďŹ ne. In 1999, for instance, investors thought it was perfectly rational to pay 62 times a company’s earnings for a tech-


1,330.97 March 4

S&P 500 stock index close: 1,500


676.53 March 9, 2009

Recession 500

Bull market duration: 10/11/90 - 3/24/00

10/9/02 - 10/9/07

3/9/09 3/4/11

0 1997 ’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 AP


nology stock because it seemed like dot-com companies couldn’t lose. They only realized their error when many of those companies turned out to be nothing more than slick marketing ploys. After two bubbles in the past 10 years — tech stocks and real estate — investors are suspicious of consistent gains that seem too good to be true. Some worry that the Fed’s dramatic measures to

For hedge fund baron, trial poses a steep risk BY PETER LATTMAN New York Times Service

When Raj Rajaratnam was a hedge fund baron managing billions of dollars and being lionized as one of Wall Street’s savviest investors, he was asked what made him so successful. “It is pride, and I want to win,� said Rajaratnam, the co-founder of the Galleon Group hedge fund, according to the 2001 book, The New Investment Superstars, by

Lois Peltz. “I want to win every time. Taking calculated risks gets my adrenaline pumping.� A decade later, Rajaratnam is taking the biggest calculated risk of his life. Beginning RAJARATNAM Tuesday, he will be seated at the defense table in a federal courtroom

in Manhattan. In the biggest insider trading trial in a generation, Rajaratnam, 53, is ďŹ ghting charges that he made $45 million trading on illegal stock tips. If a jury convicts him, he faces up to 20 years in prison. The trial promises to deliver gripping Law & Order-like drama, complete with conďŹ dential informants, wiretapped phone conversations and high-proďŹ le witnesses, including potential testimony from

Lloyd C. Blankfein, chief executive of Goldman Sachs. It will also shine a spotlight on the hedge fund industry, which over the last decade emerged as one of the most powerful forces on Wall Street The trial, expected to last sixto-eight weeks, will also display the unusual investigatory tactics the Justice Department has employed in its pursuit of insider • TURN TO HEDGE FUND, 2B

Patent expirations threaten pharmaceutical industry BY DUFF WILSON New York Times Service

This is a sobering reversal for an industry that just a few years ago was the world’s most proďŹ table business sector. And it casts a spotlight on the systemic problems drug companies now face: a drought of blockbuster drug breakthroughs and research discoveries; pressure from insurers and the government to hold down prices; regulatory vigilance and government investigations; thousands of layoffs in research and development; and a new federal program to eventually allow generic versions of expensive biologic drugs.

At the end of November, PďŹ zer stands to lose a $10-billion-a-year revenue stream when the patent on its blockbuster drug Lipitor expires and cheaper generics begin to cut into the company’s huge sales. The loss poses a daunting challenge for PďŹ zer, one shared by nearly every major pharmaceutical company. This year alone, because of patent expirations, the drug industry will lose control over more than 10 megamedicines whose combined annual sales have neared • TURN TO DRUGS, 2B $50 billion.


TELLING BLOW: Pfizer’s multimillion-dollar gamble on a replacement for the popular drug Lipitor failed in clinical trials.

3/8/2011 5:00:46 AM





Norway oil drillers hit record dry spell as reserves wane BY MARIANNE STIGSET Bloomberg News

OSLO, Norway — Statoil and Eni are among companies with plans to drill a record number of wells in Norway’s far north this year to help the world’s secondlargest gas exporter to sustain output. So far, they’ve struck out. All four wells drilled in the Barents and Norwegian seas this year have failed to find oil or gas, adding to two dry wells in the North Sea, the biggest number of failures to start the year since the country’s oil era began in 1966, according to government data. Oil companies plan as many as 22 wells in Norway’s Arctic this year, up from 12 last year. Helge Lund, chief executive at state-controlled oil company Statoil, says the industry has been unable to “crack the code” of the Barents Sea, off Scandinavia’s

northern tip. Norway, where energy production makes up about 25 percent of the economy, is pushing into the Arctic and relying more on gas because oil output has slumped 50 percent since peaking in 2000. The Barents Sea “is extremely important for Norwegian oil production given that the mature areas are in extreme decline,” said Torbjoern Kjus, an analyst in Oslo. “Every dry well is a setback, but we have to keep trying where there might be resources left if we’re going to maintain Norwegian production going for as long as possible.” Explorers drilled 16 dry wells off Norway last year, part of the reason the Petroleum Directorate cut its estimate for undiscovered gas by 31 percent, or by 570 billion cubic meters. That’s equal to almost

six years of production for Norway. Norway estimates the Norwegian Sea holds 455 billion cubic meters in undiscovered gas and the Barents Sea 520 billion cubic meters. Total undiscovered gas resources may be 1.26 trillion cubic meters, the directorate said in January, down from an estimate of 1.82 trillion cubic meters last year. The country had proven gas reserves of 2 trillion cubic meters in 2009. “It’s disappointing that we haven’t seen any results yet,” said Thina Saltvedt, an analyst at Nordea Markets in Oslo. “Norway is important for the oil market because we export a lot of the oil we produce and not least because we have a stable political situation.” Statoil recently started work on its last well for the year in the Barents Sea, in the Skrugard area. The other

four wells will be drilled by Total, GDF Suez, Dong Energy and Lundin Petroleum. Eni also postponed two wells in the Salina and Boenna prospects until next year because of a rig delay, said Andreas Wulff, a company spokesman, by phone. GDF will begin drilling at the Heilo prospect in August or September with the Aker Barents rig, which will then move on to work for Dong, GDF spokesman Ulf Rosenberg said. Rocksource, which owns 20 percent in Heilo, estimates the chance of a discovery at more than 50 percent and sees recoverable resources at 200 million barrels of oil equivalents, according to a statement on its website. The Barents Sea has two developments, Statoil’s Snohvit gas field, and Eni’s Goliat, an oilfield that is scheduled to start pumping in 2013.

“A dry well is disappointing, but every new well is a new possibility,” Ola Anders Skauby, a Statoil spokesman, said by phone. “We still believe in the Barents Sea.” The lack of discoveries is challenging targets to maintain production offshore Norway and imperiling the development of a second gas hub in the Norwegian Sea. Statoil missed production targets last year and has said a goal of keeping output in Norway at current levels until 2020 is “ambitious”. Producers operating off Norway are investing a record amount in exploration and production this year to make bigger discoveries and prolong output from existing fields. Investments are estimated to climb 13 percent, driven by an 11 percent increase in spending on exploration, the country’s statistics agency said.

LVMH to take control of Italy’s Bulgari • BULGARI, FROM 1B

LVMH’s chairman and chief executive, Bernard Arnault, has established a reputation as one of the luxury industry’s most aggressive buyers, with a massive appetite for striking deals. He has regularly dueled with rivals like PPR and Richemont, both also of France, over control of some of the world’s top brands. In the 127-year-old Bulgari, LVMH will gain a major maker of jewelry and watches, one the company has kept its eye on for some time. The company about ¤1 billion in revenue last year, a roughly 15 percent jump over the previous year, as sales rose rapidly in growing markets like China. “As is the case with LVMH, the Bulgari family shareholders are directly involved in managing the company,” Arnault said, “they are entrepreneurs that know and excel in all aspects of the business.” Bulgari draws the vast majority of its sales from Europe and Asia. Bulgari’s chief executive, Francesco Trapani, has said that he expects the company’s profits to improve this year, though he remained cautious about economic uncertainty in Europe. (Trapani is expected to take a high-level position at LVMH.) The peaceful negotia-

Continued failure may increase pressure on the government to open up protected waters off the Lofoten and Vesteraalen islands in the Norwegian Sea. Norway is also targeting areas to the east, after signing a maritime delimitation treaty with Russia in September, settling a four-decade dispute. The treaty needs to be ratified by both Parliaments. The waters along the Russian border, as well as the unexplored area around the Jan Mayen Island are described by Norway as carrying the potential to prolong petroleum output. There are no resource estimates. The government is set to reach a decision this month on whether to start a study of the consequences of exploration off Lofoten and Vesteraalen, where 3.5 billion barrels in oil and gas is estimated to lie.

Odds stacked against hedge fund baron • HEDGE FUND, FROM 1B


DEAL: Bulgari’s eponymous controlling family has agreed to exchange its 51 percent stake in the jeweler for 16.5 million LVMH shares. Kim Kardashian, above, poses in a Bulgari boutique in Paris. tions between LVMH and the Bulgari family stands in stark contrast to LVMH’s battle with another hallowed name in French luxury, Hermes, whose controlling family has largely united in an effort to fend off its acquisitive rival.

LVMH amassed a 17 percent stake in Hermes, the maker of coveted maker of Kelly and Birkin bags and iconic colorful scarves, through equity swap derivatives. High-level LVMH executives, led by Arnault, say that they are not seeking to

unnecessarily antagonize Hermes’ management. But they also suggest that they will be patient in eventually seeking control. Shaken by the quietness of LVMH’s approach and a belief that the larger company would devalue

the Hermes brand, various members of the controlling Dumas family have sought ways to maintain their grip. News of the Bulgari deal was first reported by The Financial Times online.

trading — techniques traditionally used in pursuing organized crime. Employing these tools, the investigation has reached into the upper echelons of corporate America and high finance. Just last week, federal prosecutors named Rajat K. Gupta, a former director of Goldman Sachs and Procter & Gamble, as a co-conspirator in the case. The odds are stacked heavily against Rajaratnam. The government wins about 90 percent of federal trials, according to Justice Department data. Federal prosecutors say they have overwhelming evidence of Rajaratnam’s illicit trading. They have told Judge Richard J. Holwell, who is overseeing the case, that they could play 173 secretly recorded telephone conversations between Rajaratnam and his associates, some of whom are accused as co-conspirators. The government says that Rajaratnam illegally traded in 35 stocks. Nineteen traders in Rajaratnam’s orbit have already pleaded guilty to insider trading.

Patent expirations threaten drug industry profits • DRUGS, FROM 1B

Morgan Stanley recently downgraded the entire group of multinational pharmaceutical companies based in Europe — AstraZeneca, Bayer, GlaxoSmithKline, Novartis, Novo Nordisk and Roche — in a report titled: “An Avalanche of Risk? Downgrading to Cautious.” The analysts wrote, “The operating environment for pharma is worsening rapidly.”

The same concerns apply to drug giants in the United States. They are all struggling with research failures as they scramble to replace their cash cows, like Pfizer’s multimillion-dollar gamble on a replacement for the cholesterol-lowering drug Lipitor, which failed miserably in clinical trials. Drug companies cut 53,000 jobs last year and 61,000 in 2009, far more

While industrywide research and development spending has nearly doubled to $45 billion a year over the last decade, the Food and Drug Administration has approved fewer and fewer new drugs. than most other sectors, according to the outplacement company Challenger, Gray & Christmas. While industrywide research and development

spending has nearly doubled to $45 billion a year over the last decade, the Food and Drug Administration has approved fewer and fewer new drugs.

Drug company executives have begun addressing the calls for reinvention from analysts who say the industry became too dependent on a business model built around blockbuster drugs. Consumers should see a financial benefit as lower-cost generics replace the expensive elite drugs, but may suffer in the long term if companies reduce research and do not produce new drugs that meet the public’s needs.

The federal government is also concerned abut the slowing pace of new drugs coming from the industry. Francis S. Collins, director of the National Institutes of Health, recently proposed a billiondollar drug development center at the agency. “We seem to have a systemic problem here,” Collins said, adding that government research efforts were intended to feed the private sector, not compete with it.

After historic gains, are stocks heading toward another bubble? • BUBBLE, FROM 1B

responsible for $6 billion in assets at Alpine Mutual Funds. Stocks had fallen so low during the panic that anyone who bought stocks on March 9, 2009, received an once-in-a-lifetime deal, he says. Caterpillar, for instance, closed below $24 that day. It’s now above $100. While stock prices are much higher than they were two years ago, Bob Doll, market strategist for assetmanagement giant BlackRock, says investors aren’t irrationally optimistic. “Bubbles occur when there are high valuations, evidence of lots of borrowing to lever up to buy something,” he says. “When I look around the landscape I have a hard time find-

08PGB02.indd 2

ing anything that looks like that.” One sign of a bubble would be if stocks rose far beyond what’s normal by historical standards, says Bill Stone, chief investment strategist at PNC Asset Management Group. By that measure, it’s not happening yet. According to Stone’s research, since 1928, the average bull market runs almost five years and gains 164 percent. By comparison, this bull market has barely hit middle age. The fundamentals of the stock market don’t suggest a bubble, either. The S&P 500 index now trades at 17.4 times the earnings of its stocks over the past year. In March 1999, during the tech bubble, the multiple was 30.6. Corporations are expected to make record profits

this year and have enough cash — $2 trillion — to pay bigger dividends and start buying back shares of stock, both of which make stocks more valuable. “Corporate balance sheets haven’t been in better shape over the last 200 years, period,” says Joe Davis, the chief economist at fund giant Vanguard. And there’s no ignoring the economic recovery. The economy was shrinking at almost a 5 percent annual rate when stocks bottomed out in 2009. Now it’s growing at almost a 3 percent pace. Businesses added 222,000 jobs in February, the most since April 2010, and unemployment has fallen almost a full percentage point in three months. “The economy is absolutely justifying what is happening in the stock market,” says

Liz Ann Sonders, an investment strategist at Charles Schwab. Some investors say there isn’t a bubble yet but worry that the market is in the first stages of inflating one. Rob Arnott, the founder of investment firm Research Affliates, thinks the stock market is “dangerously” overpriced. He points to Apple, which has a $321 billion market value, making it the second-largest company in the world behind Exxon Mobil. By sales, profits or payouts to investors, however, Apple fails to crack the top 20, Arnott says. “They have wonderful products and a finger on the pulse of the consumer like nobody else,” Arnott says. “But the second-largest on the planet must mean Apple is the second-largest

source of profits. Boy, that’s a stretch.” Judged by other measures of value, the companies that make up the S&P 500 look rich. Investors are paying 24 times inflation-adjusted earnings over the last decade. The historical average is 16. That ratio could climb if people push stock prices higher because they expect earnings to catch up. But Arnott believes people are already underestimating larger problems ahead, with the U.S. government’s $14 trillion in debt and a greater share of the work force hitting retirement both bound to drag down economic growth. “That’s quite a hurricane,” he says. Legendary investor Jeremy Grantham, chief investment strategist of GMO, has a knack for timing. In a let-

ter to investors released in early March 2009, Grantham argued it was impossible to declare a bottom in the stock market but said its steep drop was reason enough to jump back in. He predicted that the combined efforts of the Fed and government spending would spur a stock rally “far in excess of anything justified by either long-term or short-term fundamentals.” Grantham remains a critic of the Fed’s stimulus program but isn’t willing to say stocks have reached bubble territory. At least not yet. If the S&P 500, now just above 1,300, climbs to 1,500 by October, then watch out. At that point, he says, “it will be a market looking for an excuse to go. On the first piece of really bad news it will make a determined effort to tank.”

3/8/2011 4:04:56 AM




New York Times Service


German economists back Merkel’s moves From Miami Herald Wire Services

Leading German economists are supporting Chancellor Angela Merkel’s call for better-coordinated fiscal discipline across the eurozone ahead of a key summit this week. The presidents of Germany’s four leading economic institutes called Sunday in an open letter for “the creation and implementation of effective political limits” across the eurozone. Chancellor Angela Merkel has been reluctant to pledge more money to an EU bailout fund unless affected countries show more discipline. At a conference Friday, she proposed a so-called “pact for competitiveness” for the 17 states that share the euro. The German economists said that only through a lasting solution could Europe’s debt crisis be overcome. MOODY’S DOWNGRADES GREECE’S RATING AGAIN Moody’s Investor Services has downgraded Greece’s debt rating even further below junk status amid worries that the bailed-out euro country will end up having to restructure its massive debts. The agency said Monday it is lowering its rating by three notches to B1 from Ba1, citing three main reasons for the downgrade. As well as warning of major implementation risks associated with the government’s economic program, Moody’s noted the considerable difficulties Greece has in raising revenues and highlighted the risk of more onerous conditions when the current bailout package ends in 2013. Greece was saved from effective bankruptcy last May after accepting a ¤110 billion ($154 billion) bailout from partners in the European Union and the International Monetary Fund. • NETHERLANDS ING TO REPURCHASE $2.8 BILLION IN STATE AID ING Groep, the bailed-out Dutch financial company, says it will repay another ¤2 billion ($2.8 billion) of the state aid it received from the Netherlands during the 2008 financial crisis. ING has profited from the rebound in stock and bond markets, and cut costs since 2009, in particular paying no dividends. It has previously repaid ¤5 billion of its ¤10 billion aid package, plus penalties. Those include splitting the company’s banking and insurance arms into separate companies. • AVIATION AIRBUS PREDICTS 8,560 JETS FOR ASIA BY 2029 Airbus says Asia’s rapidly growing middle classes will drive demand for new airplanes over the next two decades. The European plane maker predicts that the Asia Pacific area will account for the biggest share of new aircraft deliveries globally. The company forecasts that 8,560 passenger aircraft will be delivered in the region over the next 20 years. That’s 33 percent of the world total, up from 26 percent in the previous 20 years. An Airbus executive said Monday that the growth of megacities in the region will require more large planes to service routes between those hubs. • JAPAN NOMURA NAMES FIRST-EVER FEMALE CFO Nomura Holdings, Japan’s biggest brokerage, named Junko Nakagawa as the company’s first-ever female chief financial officer, replacing Masafumi Nakada. Nakagawa, 45, currently co-deputy chief financial officer and an executive managing director, will start her new role on April 1, the Tokyo-based firm said in a statement Monday. Nakada, 52, will become president of Nomura Trust & Banking Company. VACCINES HALTED AFTER 4 CHILDREN DIE Japan has temporarily stopped using vaccines from U.S. drugmaker Pfizer and Sanofi-Aventis of France while it investigates the deaths of four children who were inoculated, the Health Ministry said Monday. The decision to halt the vaccines against pneumonia, some types of meningitis and other infections was made Saturday. The government is hearing from experts at a meeting Tuesday, the Health Ministry said. The four children, from under six months to 2 years old, died between March 2 and March 4. The deaths occurred the same day to three days after the vaccines were administered, the ministry said. • EGYPT SUEZ CANAL WORKERS THREATEN HUNGER STRIKE Several hundred administrative workers with Egypt’s Suez Canal Authority are threatening to go on a hunger strike if their demands for promotions are not met. The workers were protesting Sunday at the SCA’s headquarters in the city of Ismailiya. They say they have been getting the run-around from canal executives and the military officials in the area. The military had promised to raise their demands with the SCA if they disperse. The workers said they may launch a hunger strike because SCA officials are ignoring their legal right to promotions after they received degrees while on the job.

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Hong Kong gets cheap, fast broadband BY RANDALL STROSS

STERN: Chancellor Angela Merkel has been reluctant to pledge more money to an EU bailout fund unless affected countries show more discipline.


Hong Kong residents can enjoy astoundingly fast broadband at an astoundingly low price. It became available last year, when a scrappy company called Hong Kong Broadband Network introduced a new option for its fiber-to-the-home service: a speed of 1,000 megabits a second — known as a “gig” — for less than $26 a month. The United States has anything close to that. But it could. And it should. Verizon, the United States’ leading provider of fiber-tothe-home service, doesn’t offer a gig, or even half that speed. Instead, it markets a “fastest” service that is only 50 megabits a second for downloading and 20 megabits a second for uploading. It costs $144.99 a month. That’s onetwentieth the speed of Hong Kong Broadband’s service for downloading, for more than five times the price. One thing working in Hong Kong’s favor, of course,

is its greater population density, enabling broadband companies to reach multiuser dwellings at a much lower cost. But density is only part of the explanation. The personality of Hong Kong Broadband should be noted, too. A wholly owned subsidiary of City Telecom, it is an aggressive newcomer. It was willing to sustain seven years of losses while building out its fiber network before it turned profitable. Hong Kong Broadband’s principal competitor is an older company, PCCW, which has several other lines of business, including phone, television and mobile. PCCW also offers gigabit service to the home and benefits from the same population density. But PCCW’s price is more than twice as much as Hong Kong Broadband’s. Despite its low prices, Hong Kong Broadband now operates in the black. Inexpensive pricing of gigabit broadband is practical in U.S. cities, too.

“This is an eminently replicable model,” says Benoit Felten, a co-founder of Diffraction Analysis, a consulting business based in Paris. “But not by someone who already owns a network — unless they’re willing to scrap the network.” In the United States, costs would come down if several companies shared the financial burden of putting fiber into the ground and then competed on the basis of services built on top of the shared assets. That would bring multiple competitors into the picture, pushing down prices. But it would also require regulatory changes that the Federal Communications Commission has yet to show an appetite for. Dane Jasper, the chief executive of, an Internet provider based in Santa Rosa, Calif., says that most broadband markets in the United States today are dominated by one phone company and one cable company.

“Why doesn’t Verizon offer gigabit service?” Jasper asks. “Because it doesn’t have to.” In its earnings report for the quarter ended Dec. 31, Verizon said its fiber-based Internet service, which serves 12 states and the District of Columbia, was available to 12.8 million premises, an increase of 10 percent from the previous year. When asked about its lack of gig service, C. Lincoln Hoewing, Verizon’s assistant vice president for Internet and technology issues, said, “We already offer 150 megabits,” referring to a tier of fiber-based service that is marketed for $195 a month to small businesses in many of its markets. It “seems to be satisfying demand”, he said. In a follow-up e-mail, a Verizon spokeswoman addressed the company’s lack of a gig service by saying that it offers “speeds that exceed what customers can and do use”.

Small houses catching on in the U.S. BY SUSAN ZEVON Associated Press

Tiny houses are going mainstream. Just look at the Katrina Cottage, originally designed by architects Andres Duany and Marianne Cusato as a dignified alternative to the Federal Emergency Management Administration trailer for flood-ravaged New Orleans. The tiny charmers with pitched roofs, nostalgic front porches and 300 square feet to 1,800 square feet are becoming popular elsewhere; Lowe’s home stores sell the blueprints and materials. The cottages are being used as affordable housing, guesthouses and vacation cottages. It is part of a larger trend toward living small. The average size of the U.S. home expanded from 983 square feet in 1950 to 2,340 square feet (in 2004, up 140 percent. This boom was largely driven by a belief that living big meant living well, and that real estate was a great investment so the bigger the house the better the investment. The recession is one thing killing that notion. Millions of foreclosures have meant “people have lost a ton of equity,” said Boyce Thompson, editorial director of Builder magazine. Add in high unemployment and energy costs, and no wonder small might seem better. According to the American Institute of Architects in 2010, 57 percent of architecture firms reported a decrease in the square footage of homes they designed. Another factor is people’s desire to live more ecologically, less wastefully. There also are demographic changes. Thompson points out that one-third of U.S. home buyers are now single; people are marrying later, and many don’t want to wait until marriage to invest in a house. Moreover, as U.S. citizens live longer, many widows and widowers are downsizing to small homes.


ECONOMICAL: A Katrina Cottage designed by Marianne Cusato in Mississippi. And with elderly parents and grown children returning home, there are more multigenerational families, increasing the demand “for small auxiliary buildings”, Cusato says. Tiny dwellings allow generations of a family to live side-by-side with privacy. Some people do not just want small; they want minuscule. Mimi Zeiger, author of Tiny Houses (Rizzoli International, 2009) and the new Micro-Green (Rizzoli International, March 2011), defines tiny houses as around 1,000 square feet, although “some enthusiasts cap them at the 300-square-foot to 400-square-foot range”, she says. In Tiny Houses, Zeiger presents three-dozen international examples, including some in the United States. She believes that the United States’ abundance of land and materials has traditionally made U.S. citizens less conscious of con-

servation than people are elsewhere, but that is changing. Cusato credits Sarah Susanka’s book The Not So Big House (Taunton), first published in 1998 and expanded in 2009, with starting a movement to change the way builders work. “People started saying they wanted their houses to be smaller, but better,” Cusato says. Susanka, who considers a tiny house to be one measuring no more than 500 square feet, once lived in an 8-by-12 -foot flatbed trailer truck. “There has always been a fascination with tiny houses and an underground interest in them that surfaces when the economy goes down,” Susanka says. The best solution for housing in the United States, she believes, will be in the middle ground: 1,500 square feet to 2,500 square feet. “The gift of the recession will be that Americans will

believe that bigger is not better,” she says. “You have to be very disciplined to live in a tiny space,” Susanka says. Zeiger, who lives in a small studio apartment in Brooklyn, says, “The most important thing that makes a tiny house livable is efficient space planning and clever storage. Like on a ship, things need to have dual purposes. You also need good light and air, so that the space isn’t claustrophobic or hut-like, but is a space you want to spend time in.” Her table, for example, serves as both kitchen table and office desk. Cusato agrees that light is essential in a small space. She recommends “windows on multiple walls in a room, two at a minimum — three or four are ideal. Tall ceilings — 9 feet in a small space feels great. When living in a tiny house, lots of storage is essential. Nothing makes the walls close in faster than clutter”.

Stomach pacemaker could help obese lose weight BY MARIA CHENG Associated Press

LONDON — Patrick Hetzner tried diets and exercise, just about everything short of stomach stapling to lose weight. Nothing worked. Five months ago he tried something new: a stomach pacemaker that curbed his appetite. Since having it implanted, Hetzner, a 20-year-old Munich mailman, has knocked off more than 22 pounds from his earlier weight of 229 pounds. Hetzner got the device as part of a clinical trial. Since being approved by Britain last month, the device is available for sale across the European Union. It works a bit like a cardiac pacemaker, and consists of a stimulator and a sensor surgically implanted onto the stomach.

The stimulator sends out electrical pulses meant to trick the stomach and brain into thinking the body is full. Hetzner said the pulses kick in a few minutes after he starts eating or drinking. He said they make him feel full after finishing about half the amount of food he would normally eat. “It feels like a little pressure on my stomach or a tickle, but it’s not a bad feeling,” he said in a telephone interview. “It’s been like a little guide to help me change my life,” he said. So far, about 65 patients in two studies have received the device from U.S. pacemaker manufacturer Intrapace. Only about half of those have had the pacemaker for at least a year, and

most lost about 20 percent of their weight and kept it off. Other stomach pacemakers are on the market but most are used to relieve symptoms like nausea and vomiting, not to fight obesity. Appetite is partly controlled by signals sent from nerves around the stomach to the brain; the stomach pacemaker taps into that communication system, sending a message to the brain that the body is full after a relatively small amount of food is consumed. “If you can stimulate the nerves going from the stomach to the brain, that should indeed have an effect in reducing food intake,” said Stephen Bloom, an obesity expert at Imperial College in London, who is not con-

nected to Intrapace or the clinical trials. Bloom, however, questioned whether the device would work long-term, as people might eventually get used to the electrical pulses and keep eating anyway. Doctors familiar with the pacemaker say there will always be ways for patients to eat and work around the system. “We could make the [stomach pacemaker] work so people feel like they’re going to throw up, but we don’t want that,” said Thomas Horbach, chief of surgery at Stadtkrankenhaus Schwabach, near Munich, Germany, who led one of the trials. “If you take away all the responsibilities from the patient, they will not change on their own.”

3/8/2011 1:21:52 AM



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Ced[oCWha[ji 1,360 1,320 1,280

S&P 500


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WK 1 1 1 1 1 1 1 1 1




MO QTR YTD 1 0 +4.43% 1 1 -1.73% 1 0 +2.03% / 0 +4.68% 1 0 +3.50% 1 0 +4.17% 0 0 +5.34% 1 0 +3.94% 0 0 +3.65%

M_Z[bo>[bZIjeYai Name


ABB Ltd 23.97 ACE Ltd 62.11 AES Corp 12.97 AFLAC 56.76 AMB Pr 35.15 ASML Hld 43.80 AT&T Inc 27.90 AU Optron 9.00 AbtLab 48.50 Accenture 52.39 ActivsBliz 10.91 AdobeSy 34.72 AMD 8.84 AdvSemi 5.87 Aegon 7.70 Aetna 37.64 AffilMgrs 104.95 Agilent 45.87 Agnico g 69.77 Agrium g 94.01 AirProd 89.56 Airgas 62.80 AkamaiT 36.54 AlcatelLuc 5.55 Alcoa 16.25 Alcon 165.43 Alexion 98.41 AllegTch 63.62 Allergan 71.85 Allstate 31.43 AlphaNRs 55.47 AlteraCp lf 43.28 Altria 25.38 Alumina 9.63 AlumChina 23.29 AmBevC s 22.93 AmBev s 27.77 Amazon 169.08 Amdocs 29.74 Ameren 27.42 AMovilL 55.80 AMovilA 55.75 AEP 35.61 AmExp 43.71 AmIntlGrp 37.10 AmTower 53.08 Ameriprise 62.69 AmeriBrgn 37.30 Ametek s 41.97 Amgen 51.74 Amphenol 57.82 Anadarko 79.95 AnalogDev 39.62 AnglogldA 47.62 ABInBev 57.06 Annaly 17.90 Aon Corp 51.17 Apache 120.97 ApolloGrp 44.07 Apple Inc 355.36 ApldMatl 15.96 ArcelorMit 35.77 ArchCoal 35.13 ArchDan 36.74 ArmHld 28.79 AstraZen 48.29 Atmel 13.12 Autodesk 40.11 Autoliv 73.89 AutoData 50.07 AutoZone 263.25 AvagoTch 31.98 AvalonBay 113.86 Aviva 15.31 Avon 27.27 B Comm 30.80 BB&T Cp 26.35 BCE g 35.95 BHP BillLt 94.47 BHPBil plc 79.76 BMC Sft 49.42 BP PLC 48.15 BRFBrasil s 17.69 BT Grp 30.48 Baidu s 120.18 BakrHu 69.46 BallCp wi 35.68 BanColum 59.00 BcBilVArg 11.67 BcoBrades 19.40 BcoSantand 11.50 BcoSBrasil 12.02 BcSanChile 84.30 BcoChile 87.40 BkofAm 14.03 BkMont g 63.08 BkNYMel 29.85 BkNova g 61.82 Barclay 19.96 Bard 96.10 BarrickG 52.99 Baxter 53.11 BaytexE g 56.54 BeckCoult 82.91 BectDck 79.41 BedBath 47.52 BerkHa A 127630 BerkH B 85.04 BestBuy 31.81 BiogenIdc 71.24 BlackRock 198.24 Blackstone 17.59 BdwlkPpl 33.19 Boeing 70.88 BorgWarn 75.63 BostProp 92.34 BostonSci 7.47 BrasTel C 9.76 Braskem 24.57 BrMySq 26.31 BritATob 81.10 Broadcom 40.74

Chg -.48 -.58 -.12 -.66 -.48 -1.72 -.02 -.22 -.19 -.26 -.36 -.55 -.39 -.13 -.05 -.70 -2.47 -.88 -.86 -2.57 -1.66 -.45 -.83 -.11 -.33 -.60 +.07 -1.81 -.35 -.28 -1.30 -1.13 +.06 -.34 -.29 -.67 -.29 -2.59 -.61 -.08 -.51 -.24 +.28 -.01 -.29 +.01 -.58 -.37 -.50 -.58 -.65 -.98 -1.01 -.23 -.98 +.02 -.29 -1.65 -.22 -4.64 -.77 -.78 -.86 -.21 -.45 -.53 -1.03 -.60 -.38 -.26 -2.17 -.81 -1.17 -.05 -.08 +.55 -.02 -.48 -1.29 -1.11 -.82 -.41 -.11 +.02 -2.16 -.27 -.15 -.10 -.16 -.49 -.14 -.09 -.95 -.10 -.09 -.50 -.21 +.35 -.51 -1.12 +.16 -.69 -.89 -.80 -.82 -570 -.46 -.88 +.09 -3.65 -.59 -.14 -.92 -2.12 -.39 -.06 -.16 -.94 -.12 -.64 -1.30

Name BrkfldAs g BrkfldPrp BrownFB Bucyrus Buenavent BungeLt CA Inc CB REllis CBS B CF Inds CGG Verit CH Robins CIGNA CIT Grp CME Grp CNA Fn CNH Gbl CNOOC CPFL En CRH CSX CVS Care CablvsnNY Calpine Cameco g Cameron CampSp CIBC g CdnNRy g CdnNRs gs CP Rwy g Canon CapOne CardnlHlth CareFusion CarMax Carnival CarnUK Caterpillar Celanese Celgene Cemex Cemig pf Cemig CenovusE CenterPnt CnElBras lf CntryLink Cerner CharterCm ChkPoint ChesEng Chevron ChinaLife ChinaMble ChinaPet ChinaTel ChinaUni Chipotle Chubb ChungTel n ChurchDwt Cimarex CinnFin Cisco Citigrp CitrixSys CliffsNRs Clorox Coach CobaltIEn CCFemsa CCHellenic CocaCola CocaCE CognizTech ColgPal Comcast Comc spcl Comerica CBD-Pao s CompSci ConAgra ConchoRes ConocPhil ConsolEngy ConEd ConstellEn ContlRes Cooper Ind Copel Corning Costco Covidien Credicp CredSuiss Cree Inc CrwnCstle CrownHold Cummins DTE Danaher s Darden DaVita Deere Delhaize Dell Inc DeltaAir DenburyR Dentsply DeutschBk DevonE Diageo DiaOffs DirecTV A Discover DiscCm A Disney DrReddy DollarGen DllrTree s DomRescs




31.49 17.45 67.46 90.95 45.77 70.68 23.72 24.71 23.62 128.90 36.94 72.22 43.00 42.85 303.87 28.62 47.59 230.95 80.06 22.38 74.23 32.83 35.88 14.96 38.88 61.95 33.41 84.32 73.94 49.48 64.58 46.50 48.30 41.97 27.50 34.40 39.93 41.76 102.13 41.35 53.70 8.74 17.62 13.65 39.37 15.82 14.73 40.09 102.62 48.22 48.33 33.45 103.01 57.37 47.60 99.24 59.42 16.66 252.56 59.17 29.81 76.68 113.63 33.01 18.20 4.52 71.20 95.77 67.91 54.62 15.35 75.05 28.50 65.22 25.96 75.91 77.54 25.42 24.02 37.99 38.31 47.25 23.05 108.58 79.20 50.85 49.84 30.40 67.60 63.31 26.27 22.59 72.19 53.06 105.96 43.50 49.29 40.76 38.87 99.70 48.09 50.14 46.36 82.48 90.37 78.74 15.39 10.09 23.82 37.94 61.99 90.53 77.53 76.83 45.84 21.54 41.47 43.02 35.36 27.90 50.71 45.42

-.10 -.05 -.21

Dover DowChm DrPepSnap DuPont DukeEngy eBay EMC Cp ENI EOG Res EQT Corp EastChm Eaton s Ecolab Ecopetrol EdisonInt EdwLfSci s ElPasoCp EldorGld g ElectArts Embraer EmersonEl EElChile EnbrEPtrs Enbridge EnCana g EngyTEq EngyTsfr Enerpls g Enersis ENSCO Entergy EntPrPt EqtyRsd EricsnTel EsteeLdr Exelon ExpdIntl ExpScrip s ExxonMbl F5 Netwks FMC Corp FMC Tech FamilyDlr Fastenal FedExCp FibriaCelu FidNatInfo FifthThird FstSolar FirstEngy Fiserv Flextrn Flowserve Fluor FEMSA FordM ForestLab FortuneBr Fossil Inc FranceTel FrankRes FMCG s FresenM FrontierCm Gap Garmin GenDynam GenElec GenGrPr n GenMills s GenMot n GenuPrt Genworth Genzyme Gerdau GileadSci GlaxoSKln GoldFLtd Goldcrp g GoldmanS Goodrich Google Graingr GreenMtC s GpTelevisa HCP Inc HDFC Bk HSBC Hallibrtn HarleyD HarrisCorp HartfdFn Hasbro HltCrREIT Heinz HelmPayne HSchein Hershey Hertz Hess HewlettP Hitachi Hologic HomeDp Honda HonwllIntl Hormel s Hospira HostHotls HuanPwr Humana HuntBnk IAMGld g ICICI Bk IHS Inc ING ITT Corp ITW Illumina ImpOil gs IndoTel InfosysT

-.29 -1.22 -.26 -.36 -.34 -5.41 -.69 -.62 -.82 -.51 -.93 -.16 -1.47 +2.52 -.29 +.01 -.73 -.18 -.46 -.35 -1.75 -.03 -.14 -.78 +.08 -1.64 -1.68 -1.04 -.23 -.56 -.42 -.75 -.43 -.45 -.91 -.38 -.56 -.15 -.17 +.01 -.21 -.06 -.07 -.31 -1.67 +.23 -1.17 -.12 -.74 -.30 -.36 -.46 -.29 -.30 -2.44 -.23 -.27 +.30 -.38 -.24 -.20 -.02 -.68 -3.35 -.48 -.31 +.40 -.90 +.13 +.01 +.13 -.41 +.04 -.13 -.06 -.37 -.91 -.49 -.11 -.27 -.78 -1.63 +.13 +.01 -.69 -1.42 +.12 -.33 -.62 +.08 -.06 -.64 -.50 -.17 -.25 -2.80 +.37 -.62 +.04 -1.28 -1.98 +.02 -.21 +.18 -.30 +.23 -.83 -.59 -.62 -1.90 -.21 -.07 -.47 -.53 +.22 -.57 -1.27 -.12



63.82 37.26 37.35 53.26 18.14 31.50 26.79 49.22 108.58 47.05 95.23 53.03 47.42 43.06 37.59 89.83 18.11 16.26 18.45 33.36 59.08 53.00 66.29 59.47 32.12 39.56 54.12 32.17 20.28 55.33 72.94 42.87 52.62 12.85 90.89 41.82 47.67 54.67 84.72 108.70 76.56 94.50 50.59 61.26 88.26 14.38 30.86 13.60 142.55 37.27 60.17 7.83 126.04 69.39 57.10 14.01 32.25 61.23 83.05 21.74 124.35 50.14 68.69 7.94 21.26 34.43 75.45 20.38 14.98 36.79 31.70 52.09 12.75 75.87 13.57 41.06 38.23 17.49 49.99 159.15 84.55 591.66 135.77 41.27 23.28 36.71 155.03 53.24 46.44 40.75 45.59 27.81 47.00 51.28 48.61 63.33 68.49 53.39 14.81 84.36 41.98 64.57 20.93 36.87 41.60 56.19 27.13 53.32 17.46 22.73 63.04 6.53 21.97 44.83 88.00 12.36 56.67 54.77 67.43 53.73 33.26 66.82

-1.81 -.26 -.06 -.61 +.16 -.51 -.53 -.09 -.80 -.50 -1.13 -1.32 -.93 -.13 +.14 +.32 -.22 -.33 -.34 -.40 -.66 -.87 -.06 -.59 -.19 -.20 -.67 -.28 -.12 -1.66 +.69 -.23 -.70 -.10 -1.51 +.69 -.83 -1.48 -.36 -5.12 -1.42 -1.24 +.04 -.59 -.43 -.07 -.67 -.30 -4.02 +.26 -1.30 -.21 -2.36 -1.92 -.24 -.41 -.22 +.38 +2.22 -.24 -1.20 -1.57 -1.05 -.33 -.34 -.87 +.01 -.15 +.03 -.69 -.64 -.12 +.22 -.24 +.35 -.25 -.09 -.08 -1.85 -1.36 -8.96 -.66 -.48 -.41 -.23 -3.70 -.21 -.40 +1.00 -.59 -.80 +.41 -.15 -.52 -.73 -1.07 +.45 -.18 +.12 -.63 +3.33 -.15 -.35 -1.40 -.32 -.29 -.82 -.21 -.12 -1.52 -.12 -.22 -.52 +.97 -.04 -.65 -.12 -.88 -.27 +.20 -.85

Name IngerRd Intel IntcntlEx IntCtlHtl IBM IntPap Interpublic Intuit IntSurg Invesco ItauUnibH IvanhM g JDS Uniph JPMorgCh JacobsEng JohnJn JohnsnCtl JoyGlbl JnprNtwk KB FnclGp KLA Tnc KT Corp KC Southn Kellogg Keycorp KimbClk Kimco KindME KindMor n KindMM Kinross g Kohls KoreaElc Kraft Kroger Kubota Kyocera L-3 Com LAN Air LG Display LabCp LamResrch LVSands LearCorp LeggMason LeucNatl LibtyMIntA LibMCapA LifeTech LillyEli Limited LincNat LinearTch LinnEngy LloydBkg LockhdM Loews Lorillard Lowes Lubrizol Luxottica LyonBas A M&T Bk MGM Rsts Macerich Macys MagelMPtr MagnaI gs Makita Manulife g MarathonO MarIntA MarshM MarvellT MasseyEn MasterCrd Mattel MaximIntg McCorm McDrmInt s McDnlds McGrwH McKesson MeadJohn Mechel MedcoHlth Medtrnic Merck MetLife MetroPCS MettlerT Microchp MicronT Microsoft Millicom MitsuUFJ Mitsui MizuhoFn MobileTel s MolsCoorB Monsanto Moodys MorgStan Mosaic MotrlaSol n MotrlaMo n MurphO Mylan NII Hldg NTT DOCO NXP Sem n NYSE Eur Nabors NBkGreece NatFuGas NatGrid NOilVarco NetApp Netease Netflix NY CmtyB NewellRub



45.13 +.26 21.21 -.35 134.72 +4.47 21.48 -.28 159.93 -1.90 26.30 -.48 12.84 -.19 51.93 -.88 329.59 -2.45 26.19 -.41 22.14 -.71 27.22 -1.33 25.49 -1.88 45.19 -.33 48.14 -1.46 60.40 -.66 41.02 -.29 93.82 -2.79 44.32 +.21 50.44 -.94 49.25 -1.96 18.97 -.52 52.84 -1.11 54.17 -.16 9.27 +.01 64.29 -.48 18.15 -.04 73.41 +.13 30.90 +.05 65.51 -.49 15.79 +.15 53.55 -.28 12.33 -.02 31.33 -.25 23.64 +.04 48.79 -1.16 102.50 -.80 78.43 -.77 26.89 -.44 15.91 -.21 91.13 -1.25 56.72 -1.55 42.19 -1.46 103.30 -1.06 35.00 -.76 32.23 -.17 16.04 -.17 73.26 -1.35 52.93 -.35 34.66 +.06 31.60 -.71 30.47 -.45 33.85 -.70 38.62 +.18 3.91 -.09 79.30 -.55 42.38 -.39 77.54 -.20 26.00 -.24 105.18 -2.41 31.76 +.26 39.83 +.19 87.08 -.93 13.44 -.32 47.61 -.75 23.26 -.10 59.22 -.12 50.00 -.81 41.36 -.78 18.46 -.42 51.42 -.24 37.95 -.05 29.94 -.30 15.81 -.32 64.25 -1.08 247.27 -2.48 25.37 -.15 26.74 -.77 47.69 -.47 25.45 -.19 76.29 +.26 37.54 -.59 78.56 -1.92 59.20 -.08 29.00 -1.31 62.03 -1.56 38.99 -.27 32.83 -.23 45.53 -.04 14.98 +.07 171.77 -5.30 36.62 -.58 11.03 -.61 25.72 -.23 88.89 -.70 5.37 -.09 360.93 -10.57 4.06 -.04 20.21 +.47 43.54 -.70 71.65 -1.41 31.82 +.09 28.32 -.12 82.72 -2.78 40.22 +.07 26.95 +.30 73.44 -.46 22.53 -.21 37.97 -1.33 18.85 -.08 29.16 -1.59 35.59 -.41 27.58 -.68 1.78 -.06 71.33 -1.35 46.93 -.24 79.88 -.86 51.13 -.92 46.58 -.75 207.40 -3.32 17.57 -.18 19.04 -.11

Name NewfldExp NewmtM NewsCpA NewsCpB Nexen g NextEraEn NiSource Nidec NielsenH n NikeB NipponTT NobleCorp NobleEn NokiaCp Nomura Nordstrm NorflkSo NoestUt NorTrst NorthropG Novartis NovoNord Nucor Nvidia OReillyAu OcciPet Omnicom ONEOK ONEOK Pt Oracle Orix PG&E Cp PNC POSCO PPG PPL Corp Paccar PallCorp Panasonic ParkerHan Paychex PeabdyE Pearson PennWst g Penney PepsiCo Perrigo PetChina Petrohawk PetrbrsA Petrobras Pfizer PhilipMor PhilLD PhilipsEl PioNtrl PlainsAA PlumCrk Polo RL PortglTel Potash wi Praxair PrecCastpt PriceTR priceline PrideIntl PrinFncl ProctGam ProgrssEn ProgsvCp ProLogis Prudentl Prud UK PSEG PubStrg QEP Res n Qualcom QstDiag QwestCm Randgold RangeRs Raytheon RedHat ReedElsNV ReedEls plc RegionsFn Repsol RepubSvc RschMotn ReynAm s RioTinto s Riverbed s RockwlAut RockColl RogCm gs Roper RossStrs Rovi Corp RoyalBk g RBScotlnd RylCarb RoyDShllB RoyDShllA Ryanair SAIC SAP AG SK Tlcm SLGreen SLM Cp STMicro SABESP Safeway StJude Salesforce SanDisk Sanofi SaraLee Sasol Schlmbrg Schwab ScrippsNet SeadrillLtd

Last 72.01 53.68 17.21 18.12 27.02 54.62 19.09 22.51 27.00 88.92 24.67 44.67 93.47 8.34 5.96 43.26 64.84 34.12 50.94 65.79 56.19 127.68 46.88 20.47 55.38 103.53 48.93 64.08 82.50 32.10 56.04 45.67 60.70 101.60 87.52 26.00 48.43 54.62 13.37 85.21 33.05 68.28 17.80 28.03 34.41 63.47 76.00 138.23 21.80 35.95 41.57 19.61 63.64 51.99 32.93 99.28 65.37 40.53 124.62 11.45 59.12 96.92 136.58 65.94 466.69 41.75 32.68 61.71 45.99 20.70 15.68 63.15 22.64 31.47 109.24 38.07 57.58 56.21 6.62 77.01 50.16 51.09 40.35 26.42 35.71 7.41 33.46 29.60 64.86 34.70 68.33 42.40 86.73 63.50 34.42 84.87 70.67 55.39 61.29 14.09 42.24 70.99 71.72 28.99 16.53 61.03 18.23 72.46 14.69 13.13 51.45 21.60 49.31 128.02 46.88 35.31 16.64 55.64 90.25 18.56 50.76 36.55

Chg -.59 -.39 -.60 -.33 -.13 +.01 +.08 +.45 -.96 -.25 -.17 -.23 -.15 -.15 -.82 -.46 +.29 -.50 -.90 -.87 -.09 -1.06 -.29 -1.00 +.38 -.62 -.45 -.31 -.67 -.40 +.19 -.25 -2.72 -1.05 +.44 -.77 -.65 +.07 -2.12 -.25 -1.07 -.52 +.30 +.07 -1.60 -1.02 +.31 +.10 +.09 -.05 +.14 -.24 -.32 -.72 -.20 -.36 -.67 -.01 -1.97 -1.34 -2.57 -.80 -2.44 -.85 -.31 -.32 +.29 -.18 -.17 -.72 -.50 -.14 +.13 -.33 -.57 -.48 -.03 -3.47 -.42 -.63 -.61 -.03 +.08 -.07 -.18 -1.61 -.15 -2.20 -2.08 -1.16 -.87 -.54 -1.08 -1.24 -1.13 -.06 -.25 -.03 -.53 -.49 +.03 -.05 -.42 -.65 -.03 +.01 -.36 -.23 -.08 -1.95 -.81 -.23 -.19 -.29 -1.15 -.10 -.88 -.66

SeagateT SearsHldgs SempraEn Sensata n ShawC gs Sherwin Shinhan Shire SiderNac s Siemens SigmaAld SilvWhtn g SimonProp SiriusXM SkywksSol Smith&N Smucker SocQ&M SonyCp SouthnCo SthnCopper SwstAirl SwstnEngy SpectraEn SprintNex StanBlkDk Staples Starbucks StarwdHtl StateStr Statoil ASA Stericycle Sterlite Stryker Subsea 7 SumitMitsu SunLfFn g Suncor gs SunTrst Symantec Syngenta Sysco TD Ameritr TIM Partic TJX TRWAuto TaiwSemi TalismE g Target TataMotors TeckRes g TelNorL TelItalia TelItaliaA TelSPaulo TelefEsp s TelMexA TelMexL Telus g Tenaris Teradata Ternium TevaPhrm TexInst Textron ThermoFis ThomsonR 3M Co Tiffany THorton g TW Cable TimeWarn TorDBk g Total SA Toyota TrCda g Transocn Travelers TrimbleN Turkcell TycoElec TycoIntl Tyson UBS AG UltraPt g UnilevNV Unilever UnionPac UtdContl UtdMicro UPS B US Bancrp USSteel UtdTech UtdhlthGp UnumGrp UrbanOut VF Cp Vale SA Vale SA pf ValeantPh ValeroE VarianMed Ventas VeoliaEnv Verisign VerizonCm VertxPh ViacomB VimpelC n VirgnMda h Visa VivoPart VMware Vodafone Vornado VulcanM WPP plc WalMart Walgrn WalterEn WarnerCh s WsteMInc Waters WatsnPh WeathfIntl WellPoint WellsFargo WDigital WstnUnion Westpac Weyerh Whrlpl WhitingPt s WholeFd WmsCos WmsPtrs WillisGp WimmBD Windstrm Wipro s WiscEn s WooriFn Wyndham Wynn XL Grp XcelEngy Xerox Xilinx YPF Soc Yahoo Yamana g YanzhouC YumBrnds Zimmer

Last 13.56 83.24 53.60 33.27 20.80 80.00 87.78 84.86 16.07 132.10 62.65 45.02 105.95 1.74 34.41 57.43 69.51 54.35 35.16 38.07 40.73 11.77 37.91 26.98 4.48 74.94 20.12 33.60 57.74 43.84 27.45 84.71 14.56 63.31 25.94 7.36 31.81 46.87 28.90 17.88 66.24 27.59 22.45 38.66 49.32 58.07 12.20 24.21 51.30 25.07 54.03 15.37 15.53 13.53 25.09 25.28 17.94 18.01 47.03 46.63 49.90 36.42 49.31 35.48 26.64 56.61 39.11 92.40 62.97 44.32 71.07 36.78 85.25 60.79 89.02 39.46 83.75 58.96 49.49 13.79 36.32 45.09 18.40 19.30 43.44 30.40 29.72 94.56 23.31 2.86 71.80 26.90 54.38 82.28 43.56 25.81 37.99 96.75 33.23 29.27 39.39 27.83 69.78 52.57 30.77 35.53 36.01 49.62 46.16 14.20 27.52 74.15 36.76 82.30 29.09 87.62 42.93 66.40 52.02 41.85 126.02 23.69 37.24 86.01 56.08 20.84 67.91 31.72 34.68 21.61 116.71 23.34 80.37 67.63 57.87 30.28 50.92 38.08 33.80 12.45 13.18 30.06 37.67 31.42 126.40 22.79 24.00 10.39 34.16 52.56 16.70 12.58 31.38 50.84 61.87

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ISharesS P60 20.39 TalismanEgy 23.55 GoldcorpInc 48.62 LundinMng 7.51 CdnOilSands 32.58 Scorpio o 1.19 FormationMtls 1.32 SilverWheaton 43.74 SuncorEngy 45.57

08PGB04.indd 4

Chg -.21 -.70 -.08 -.39 +.24 +.02 +.01 +.10 -.82



T D Bank 82.88 AdvOil Gas 8.40 BCE Inc 34.96 ShawCommBNV20.20 ConnacherO G 1.48 HrznCrdOilBl 9.15 DenisonMines 3.55 GreystarReso 2.79 CdaLithiumo .87

Chg -.72 +.52 -.45 -.31 -.06 +.03 -.17 -.42 -.12



MagmaEgyo 1.12 RoyalBank 59.59 HrznNtGsBul 5.02 KinrossGold 15.36 CentaminOrd 2.04 GrtPanthrJ 4.82 CrocodileGld .98 ManulifeFin 17.96 YellowMedia 5.20

Chg -.10 ... +.29 +.18 -.01 +.43 -.02 -.36 -.09




RogersCommB 33.53 -.40 OsiskoMngo 14.27 +.01 CdnNatRes 48.10 -1.60 IvanhoeMines 26.57 -1.06 SemafoInc o 8.76 -.54 BombdrBSV 6.27 -.20 UraniumOneo 6.19 -.26 YamanaGld 12.22 -.23 EasternPlato 1.55 -.05



QuadraFNX BarrickGold IamgoldCorp AvalonRareo NewGoldo HrznCrdOilBr AirCdaBV Bk NS ComptonPete

13.44 51.53 21.34 7.46 10.42 5.89 2.65 60.15 .33

Chg -.52 +.13 -.26 +.34 -.04 -.01 -.18 +.49 -.02




SunLifeFin 30.95 -.75 EqnoxMnrlso 5.50 -.26 BankersPeteo 9.85 +.12 HrznNatGsBr 10.06 -.68 SanGoldo 2.77 -.02 GranTierrao 8.53 -.63 TeckResBSV 52.53 -1.59 AndersonEgy 1.26 -.05 NuinscoReso .20 -.03

Interestrates TREASURIES 3-month T-bill 6-month T-bill

The yield on the 10-year Treasury rose to 3.49 percent Monday. Changing yields affect interest rates on consumer loans. PRIME RATE YEST 3.25 PREV 3.25 WK AGO 3.25



.10 .15

.11 .14

-0.01 +0.01

1 1

1 1

1 1

.14 .19








2-year T-note








5-year T-note








10-year T-note 30-year T-bond

3.49 4.61

3.48 4.60

+0.01 +0.01

0 0

1 1

0 0

3.68 4.64



Barclays LongT-BdIdx 4.30 Bond Buyer Muni Idx 5.67 Barclays USAggregate 3.08 Barclays US High Yield6.81 Moodys AAA Corp Idx 5.17 Barclays CompT-BdIdx 2.29 Barclays US Corp 4.03



52-wk T-bill


FED FUNDS .00-.25 .00-.25 .00-.25

Foreign Exchange


4.30 5.66 3.17 6.80 5.21 2.30 4.11

... +0.01 -0.09 +0.01 -0.04 -0.01 -0.08

0 0 0 1 0 0 0

COMMODITY CLOSE PVS. Unleaded Gas (gal) 3.00 3.04 Crude Oil (bbl) 105.44 104.42 Gold (oz) 1434.10 1428.20 Platinum (oz) 1820.40 1837.90 Silver (oz) 35.85 35.31 Coffee (lb) 2.81 2.73 Orange Juice (lb) 1.78 1.76 Sugar (lb) 0.30 0.30




Argent (Peso) .2483 Brazil (Real) .6045 Britain (Pound) 1.6202 Canada (Dollar) 1.0278 Chile (Peso) .002110 Colombia (Peso) .000529 Dominican Rep (Peso) .0266 Euro (Euro) 1.3968 Japan (Yen) .012153 Mexico (Peso) .083008 Uruguay (New Peso) .0515

-.0000 -.0034 -.0060 -.0006 -.000000 -.000000 -.0000 -.0019 +.000006 -.000359 -.0000

1 1 1 1 1 1 1

0 0 0 1 0 0 0

%CH. -1.40 +0.98 +0.41 -0.95 +1.52 +2.95 +1.40 +0.37

%CHG. -.00 -.56 -.37 -.06 -.00 -.00 -.00 -.14 +.05 -.43 -.00


4.37 5.28 3.37 8.93 5.22 2.32 4.47

%YTD +22.5 +15.4 +0.9 +2.7 +16.0 +16.8 +3.1 -6.6


.2532 -.0109 .5780 +.0438 1.5344 +.1045 .9548 +.0565 .002007 +.000145 .000553 +.000003 .0269 -.0010 1.2702 +.0344 .011935 +.001088 .076564 +.004019 .0481 +.0002

=beXWbCWha[ji INDEX




1310.13 7161.93 5973.78 23313.19 3990.41 10505.02


-11.02 -16.97 -16.61 -95.67 -29.80 -188.64

-0.83% -0.24% -0.28% -0.41% -0.74% -1.76%

1 1 1 1 1 1

1 1 1 1 1 1

0 0 0 0 0 0

+4.17% +3.58% +1.25% +1.21% +4.88% +2.70%

IEKJ>7C;H?97%97D7:7 Buenos Aires Merval 3467.72 Mexico City Bolsa 36603.30 Sao Paolo Bovespa 68012.10 Toronto S&P/TSX 14092.35

... -297.54 ... -160.42

...% -0.81% ...% -1.13%

0 1 0 1

1 1 0 0

0 1 1 0

-1.59% -5.05% -1.87% +4.83%

ASIA Seoul Composite 1980.27 Singapore Straits Times 3066.52 Sydney All Ordinaries 4895.90 Taipei Taiex 8713.79 Shanghai Shanghai B 320.79

-24.41 +5.21 -62.70 -70.61 +3.79

-1.22% +0.17% -1.26% -0.80% +1.20%

0 0 1 0 0

1 1 1 1 0

0 1 0 0 0

-3.45% -3.87% +1.01% -2.88% +5.40%

S&P 500 Frankfurt DAX London FTSE 100 Hong Kong Hang Seng Paris CAC-40 Tokyo Nikkei 225



BWh][ijCkjkWb<kdZi NAME


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USEqIndxAg 46.50 -.39 +17.3 USEqIndxI 46.50 -.39 +17.3 First Eagle GlbA m 47.61 -.29 +18.5 FrankTemp-Franklin CA TF A m 6.61 -.01 -.8 Fed TF A m 11.31 -.01 +.1 Income A m 2.25 ... +16.9 Income C m 2.27 ... +16.1 FrankTemp-Mutual Discov A m 30.12 -.18 +11.7 Discov Z 30.49 -.18 +12.0 Shares Z 21.68 -.13 +12.7 FrankTemp-Templeton GlBond A m 13.62 ... +9.0 GlBond C m 13.64 ... +8.6 GlBondAdv ... +9.3 Growth A m 18.76 -.13 +14.9 GMO QuVI 20.70 -.15 +9.1 Harbor Bond 12.20 ... +6.7 CapApInst 38.02 -.45 +15.0 IntlInstl d 62.64 -.44 +17.5 Hartford CapAprA m 35.27 -.43 +12.8 CpApHLSIA 43.88 -.48 +17.7 INVESCO CharterB m 16.29 -.10 +9.4 EqIncomeA m 8.96 -.05 +13.4 Ivy AssetStrA m 24.95 -.27 +13.9 AssetStrC m 24.22 -.26 +13.1 JPMorgan CoreBondSelect11.44 ... +5.9 HighYldSel d 8.36 ... +16.2 ShDurBndSel 10.97 ... +2.4 Janus OverseasJ d 51.15 -.57 +14.8 PerkinsMCVJ 23.44 -.18 +14.7 RMCrJ d 13.78 -.12 +19.5 John Hancock LifBa1 b 13.29 -.07 +14.5 LifGr1 b 13.26 -.11 +16.4 Lazard EmgMkEqtI d 20.78 -.19 +16.0 Longleaf Partners LongPart 30.49 -.23 +22.9 Loomis Sayles BondI 14.51 -.03 +12.8 BondR b 14.46 -.02 +12.5 Lord Abbett AffiliatA m 12.06 -.12 +15.0 Manning & Napier WrldOppA 9.06 -.08 +14.9 Masters’ Select SmallerCos d 13.68 -.16 +22.6 Oakmark EqIncI 28.60 -.21 +9.3 Intl I d 20.32 -.19 +20.2 Oppenheimer DevMktA m 34.99 -.22 +22.2 DevMktY 34.62 -.22 +22.6 GlobA m 63.63 -.24 +19.2 IntlBondA m 6.50 ... +6.9 PIMCO AllAssetI 12.32 -.02 +14.0 ComRlRStI 9.82 -.05 +33.1 HiYldIs 9.50 -.01 +14.4 LowDrIs 10.42 -.01 +4.3 RealRet 11.46 ... +8.1 TotRetA m 10.88 -.01 +6.9 TotRetAdm b 10.88 -.01 +7.1 TotRetC m 10.88 -.01 +6.1 TotRetIs 10.88 -.01 +7.3 TotRetrnD b 10.88 -.01 +7.0 TotlRetnP 10.88 -.01 +7.2 Permanent Portfolio 47.02 -.12 +19.6 Pioneer GlobHiYA m 10.83 -.01 +18.2 Schwab S&P500Sel d 20.45 -.17 +17.2 Scout Interntl d 33.48 -.32 +16.8 T Rowe Price BlChpGr 40.01 -.46 +20.3 CapApprec 21.11 -.11 +14.6


EqIndex d 35.38 -.30 +17.0 EqtyInc 24.73 -.17 +16.8 GNMA 9.89 -.01 +5.0 GrowStk 33.47 -.38 +20.2 HiYield d 6.94 -.01 +15.9 IntlStk d 14.50 -.16 +15.8 MidCapVa 24.65 -.23 +17.0 MidCpGr 62.19 -.83 +29.0 NewHoriz 35.36 -.46 +33.4 NewIncome 9.45 -.01 +5.5 Rtmt2020 17.01 -.12 +16.2 Rtmt2030 17.97 -.15 +18.1 SmCpStk 36.07 -.45 +30.7 Value 24.70 -.20 +18.8 Templeton InFEqSeS 21.10 -.13 +15.4 Thornburg IntlValA m 29.11 -.25 +18.6 IntlValI d 29.77 -.25 +19.1 Vanguard 500Adml 121.08 -1.01 +17.3 500Inv 121.05 -1.01 +17.2 AssetA 25.27 -.18 +16.7 EmMktIAdm d39.10 -.21 +17.3 EnergyAdm d136.89 -.98 +26.6 EnergyInv d 72.90 -.52 +26.6 Explr 77.03 -1.21 +27.2 GNMA 10.72 ... +5.4 GNMAAdml 10.72 ... +5.6 HYCorAdml d 5.82 ... +14.2 HltCrAdml d 54.14 -.53 +8.7 HlthCare d 128.30 -1.24 +8.6 ITGradeAd 9.91 -.01 +8.4 InfPrtAdm 25.87 ... +7.3 InfPrtI 10.54 ... +7.3 InflaPro 13.17 ... +7.1 InstIdxI 120.22 -1.01 +17.3 InstPlus 120.23 -1.01 +17.4 InstTStPl 29.84 -.28 +18.8 IntlGr d 19.71 -.19 +17.8 IntlStkIdxAdm d27.14-.22 NA IntlVal d 33.36 -.29 +12.7 LifeCon 16.67 -.07 +10.9 LifeGro 22.80 -.17 +16.3 LifeMod 20.07 -.12 +13.7 MidCpAdml 96.93 -1.06 +24.9 MidCpIst 21.41 -.24 +25.0 MuInt 13.30 ... +1.3 MuIntAdml 13.30 ... +1.3 MuLtdAdml 10.99 ... +1.3 MuShtAdml 15.86 ... +.8 Prmcp d 68.41 -.83 +15.4 PrmcpAdml d 70.98 -.87 +15.4 STBondSgl 10.53 -.01 +2.9 STCor 10.78 -.01 +4.1 STGradeAd 10.78 -.01 +4.2 Star 19.60 -.13 +12.6 TgtRe2015 12.72 -.07 +12.7 TgtRe2020 22.70 -.14 +13.6 TgtRe2030 22.40 -.17 +15.5 TgtRe2035 13.57 -.11 +16.6 Tgtet2025 13.00 -.09 +14.6 TotBdAdml 10.54 -.01 +4.7 TotBdInst 10.54 -.01 +4.8 TotBdMkInv 10.54 -.01 +4.6 TotBdMkSig 10.54 -.01 +4.7 TotIntl d 16.23 -.13 +15.3 TotStIAdm 33.01 -.31 +18.8 TotStIIns 33.01 -.31 +18.8 TotStIdx 32.99 -.31 +18.6 WellsI 22.13 -.08 +10.9 WellsIAdm 53.63 -.19 +11.0 Welltn 32.15 -.18 +12.7 WelltnAdm 55.54 -.30 +12.8 WndsIIAdm 47.90 -.36 +12.9 Wndsr 14.20 -.14 +16.5 WndsrII 26.99 -.20 +12.9

3/8/2011 5:53:45 AM






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08PGB05.indd 5

3/7/2011 9:04:00 PM







through dummy’s king, so declarer had kept himself in the hunt nicely. The following deal falls However, when the spade under the heading of a technine held the first trick, Jason nical play, but it also has the elements of an optical illusion. found the essential switch to the club ace and another club, The right play sometimes WEST EAST setting up his side’s fourth ♠Q73 ♠ K 10 9 4 2 can be disguised because we trick before declarer could are all hedged around with a ♥ 10 8 6 ♥5 establish the diamonds to dis◆942 ◆ A 8 5 3 framework of do’s and dont’s ♣9853 ♣ A Q J so that we cannot see the for- card his club losers. This may seem simple, but est for the trees. less than half the field set the Four hearts is a difficult SOUTH game here. The point is that contract both to declare and ♠A65 the rule that needs to be brodefend. When Piet Jansen ♥AKJ432 ken exerted such a sway that reached it in the Cap Gemini ◆ 10 even some of the best defendInvitational Pairs in 1999, ♣ 10 6 4 ers in the world could not Justin Hackett led a spade in response to his partner’s over- bring themselves to do it. Yes, Vulnerable: Both you are not supposed to lead call. Jansen put in dummy’s Dealer: North eight, and when Jason Hackett a potentially well-placed ace covered with the nine, Jansen and set up a king in dummy. The bidding: But if you know that there are ducked. South West North East discards to come for declarer, Had South won the trick, 1◆ 1♠ you may have to bite the Jason would subsequently bullet. have put his partner in with 2♥ Pass 3♥ Pass the spade queen to lead a club 4♥ All pass 3-8 —BOBBY WOLFF NORTH ♠J8 ♥Q97 ◆KQJ76 ♣K72



For more comics & puzzles, go to


Opening lead — ♠ three





WHITE FORCES MATE Hint: Simplification is quickest. Solution: 1. Rxh7ch! Kxh7 2. Qh3ch Kg7 3. Rg1ch Kf8 4. Qh8 mate [from Zhigalko-Rakhmanov ’11].






Dear Abby: My 9-year-old son’s friend “Isaac” was over for a visit. He was captivated by our Labrador retriever, “Layla,” who is very loving. Isaac doesn’t have a dog, so he wanted to play with Layla. At one point, I overheard him say to my son, “Look, I’m riding your dog!” I immediately intervened, but I was too late. A day or so later, Layla was unable to descend our stairway and was clearly in pain. She has been on pain medication for three weeks and is growing progressively worse. The next step is to get X-rays and/or an MRI to see if she has a spinal injury, and then determine her treatment. It’s possible the damage is irreversible. My wife and I are extremely upset about this, but we’re afraid to tell our son or Isaac and his parents for fear it will place undue guilt on a 9-year-old boy. On the flip side, I wouldn’t want him to do this to anyone else’s beloved pet. How do you recommend we proceed? Heartbroken in New York Children are not mindreaders. If you don’t tell them when they make a mistake, they won’t realize they have made one. Contact Isaac’s parents and explain what happened. If your dog needs treatment, they should be responsible for whatever damage their son did.



tears in our friend’s eyes and offered her my handkerchief. On the way home, this sparked a conversation about the obligation of a person who receives a handkerchief. Should it be returned after the event, or should it first be laundered? Or is it considered a gift, not to be returned at all? Later that evening at a movie, I noticed a woman hand someone her handkerchief saying, “It’s monogrammed. It was my mother’s.” No mention was made of a request that it be returned. I’m sure most people wouldn’t mind letting go of a standard handkerchief, but one with sentimental value would be different, wouldn’t it? What do you suggest? Real Men Carry Handkerchiefs You were chivalrous to offer your handkerchief to the grieving daughter. Had it merely been used to dab away a tear, it could have been returned to you at the end of the service. If, however, there was makeup on it — or the dab was followed by a swipe of her nose — the woman should have held onto it, laundered it and returned it to you in the presumably pristine condition it was in when you gave it to her. As to the monogrammed (heirloom) hanky you saw lent in the theater, when the woman explained its significance to her friend, that was the tip-off that she expected it to be returned.

Dear Abby: The other day I was with a friend who is a bit overweight. We were trying on clothes in one of the stores. She grabbed a shirt she was sure she could fit into, but when she tried it on, it ripped. She had to pay for it. On the ride home my friend asked me, “Am I fat?” I was at a loss, so I told her no. What should I have done? I feel horrible for lying, but I didn’t know what else to do. Lost For Words


You could have replied, “What size was the shirt?” And when she answered, you should have said, “I guess you’re a size or two larger.” It would have been more tactful than saying she was fat, and gotten the point across. Dear Abby: My wife and I recently attended the funeral of a friend’s father. During the sermon I noticed

HOROSCOPE IF TODAY IS YOUR BIRTHDAY: You are inspired to reach higher in the upcoming four weeks. Your business sense is admirable, but be aware that you might have a blind spot when dealing with others in a one-on-one basis. • PISCES (Feb. 19-March 20): Times are changing. You may encounter someone who will become an integral part of your life. • ARIES (March 21-April 19): The daily routine may be a bore, but you can easily spice it up with a few laughs.


• TAURUS (April 20-May 20): Reach out and touch someone. Pick up the phone and get in touch with key contacts. • GEMINI (May 21-June 20): Make dreams a reality. Now is the time to put your ideas on display for all to see. • CANCER (June 21-July 22): Kick back and relax. With your responsibilities out of the way for the time being, you can really let your hair down and focus on enjoying yourself. • LEO (July 23-Aug. 22): Enjoy time in the spotlight. Your outgoing manner will attract others and in social situations you’ll find yourself at center stage. • VIRGO (Aug. 23-Sept. 22): Take a load off. A new project tugs at you almost like an obsession but a significant other has different plans. • LIBRA (Sept. 23-Oct. 22): Imagination is the key to success. You can simplify the most difficult of matters by thinking creatively. • SCORPIO (Oct. 23-Nov. 21): Look before you leap. Wait until a dispute is resolved before making any final decisions. • SAGITTARIUS (Nov. 22-Dec. 21): Keep your eyes on the prize. Take care of responsibilities first, and then let your attentions wander where they will. • CAPRICORN (Dec. 22-Jan. 19): Stand your ground. Do not let your opinions be influenced by those who are not even worthy of your trust. • AQUARIUS (Jan. 20-Feb. 18): Take your turn at bat. You’ve been put to the test and now your time to shine is at hand.

08PGB06.indd 6

CROSSWORD ACROSS 53 Topographers 1 Ersatz silk 56 Pre-hanging activity 6 ___ cotta 58 Swelled head 11 “The ___ Who 59 Water under le pont Loved Me” 60 Vin source 14 Take part in a secret 61 Tat counterpart joint venture? 62 Formula for a 15 Sign of April Fool’s Day? slapstick feature? 16 Color subtlety 68 Bavarian peak 17 Formula of a classic 69 “Poly” attachment dessert? 70 Not be picky with 19 A little bit of history a guitar? 20 Alternative to 71 Tropical souvenir a bare floor 72 Full of cattails 21 Recipe phrase 73 X, mathwise 22 Teacher’s favorite 23 Wrecked beyond repair DOWN 27 Gate locks 1 Soldier under Gen. Lee 29 Kicking bird 2 The most you can get 30 Chalky 3 Second-person person 32 Cairo’s river 4 “Don Giovanni,” 33 Links number for example 34 Sober and sedate 5 Supernova remnants 36 Some weightlifting 6 Coal or pine product moves 7 Go astray 39 ___ a deal 8 Qatari money 41 Zillions 9 Draw up a new course 43 Revise of action 44 Girth control methods? 10 Type of black bear 46 Bridge coups 11 English dish’s formula? 48 Avail oneself of Vail 12 Whip up 49 Shrill cry 13 “The Second Coming” 51 Faucet annoyance poet 52 Porker’s pad 18 Disgorges

23 Warmish 24 Muscat citizen 25 Formula for a hearty dinner? 26 Indian vegetable dishes 28 Crossword hint 31 Word on a three-sided sign 35 Star on the small side

37 38 40 42 45 47 50 53 54

Compare Yellow jacket’s defense Escalator segment Discredit 1973 Woody Allen movie Least ornamented Heap kudos on Silver or platinum Like a contortionist

55 Posh hotel accommodation 57 Civilian clothes, for a soldier 63 Actor Beatty 64 Make an attempt 65 Tentacle 66 Theatrical signal 67 Type measures

3/7/2011 8:59:25 PM



Pregame naps help NBA players recharge • NAP, FROM 8B

teammate with the Phoenix Suns. “You’re tired around midday. Naps are important. It refreshes you. It gets you ready for competition.” NBA players appear to be the kings of nap, although professional hockey players seem right behind. Of the roughly two dozen NBA players interviewed for this article, all said that they usually took naps in the hours before games. NFL players are least likely to nap because they play only once a week, usually during the day, and much of their work schedule, revolving around team meetings and practices, resembles that of a traditional 9-to-5 worker. In baseball, major leaguers have less disruptive lives on the road than NBA players because they almost always spend several days in one city before moving on. They also do not have to deal with morning practices, making it fairly easy to sleep in. Still, some baseball players nap in the clubhouse. A mild controversy erupted last season when several Seattle Mariners told a newspaper reporter that Ken Griffey Jr. was asleep in the clubhouse during a game. Harold Reynolds, the baseball broadcaster and former player, recalled that at his first All-Star Game, in 1987, no one could find Rickey Henderson for a meeting. He was eventually discovered asleep, taking his usual power snooze. NHL schedules closely resemble those in the NBA, which is why naps are prevalent there, too. Players work late, quickly move on to another city and often have morning skates to prepare for games. Sleep is disrupted. So players shut down in the afternoon for 20 minutes to two or three hours. In the NBA, LeBron James swears by his siesta. Derrick Rose sleeps three hours before every night game. Kobe Bryant checks into a hotel before home games for his nap. Some NBA teams have received an education in the art of napping from Dr. Charles Czeisler, the director of the Division of Sleep Medicine at Harvard Medical School and chief of

the sleep medicine division at Brigham and Women’s Hospital in Boston. Czeisler, known in the NBA as the sleep doctor, has consulted with the Boston Celtics, the Portland Trail Blazers and the Minnesota Timberwolves about the virtues of receiving enough sleep. Napping was a significant piece of the tutorial. Czeisler said he thought that NBA players needed more sleep than the average person, about nine hours a day. Typical NBA games end about 10 p.m., and with showering, eating, interviews and unwinding factored in, many players do not get to sleep until much later. If they are traveling to the next city after a game, they may arrive at their hotels after 3 a.m. There may then be a morning shootaround that requires getting up by 9 a.m. or earlier. Who wouldn’t want a nap? Several NBA teams have experimented with curtailing morning shootarounds to establish a more reliable sleep pattern for players. But for the most part, shootarounds remain an NBA staple. And every player seems to nap. “That’s probably the most consistent sleep that you get, based on travel and game schedule,” said Jason Kapono of the Philadelphia 76ers. Czeisler said that players who got nine hours of sleep were more likely to react quicker, remember plays better and generally maintain their health more consistently. He said that biologically, the body rests best at night or in the midafternoon, enhancing the value of a nap. “Sleep is critical to maintaining performance, particularly reaction time,” he said. One NBA trainer, Gregg Farnam of the Timberwolves, said he contacted Czeisler because of his team’s relatively young roster. Czeisler met personally with the team and offered his thoughts. Players not in the league long enough to believe in the value of naps began to change their view. “Guys make more time for naps now,” Farnam said. “Before, they’d just take a nap when they were really tired instead of building it into” their routine.






Los Angeles Lakers guard Kobe Bryant, left, is fouled by San Antonio Spurs guard George Hill during the first half of their NBA game at the AT&T Center in San Antonio, on Sunday. The Lakers won 99-83.

In Heat’s loss to Bulls, misery wins again • HEAT, FROM 8B

excruciating. Not for a team that has won 43 games with 19 yet to go. But regular isn’t a word that was ever supposed to be associated with this Heat team. The season was supposed to be a spectacular success. The league was supposed to be in awe of what these three stars can do together, and there was to be nothing ordinary about the 82 games before the playoffs. They were rarely supposed to be humbled and it

certainly wasn’t supposed to come with this heavy a hand. “This is probably the toughest challenge that I’m sure all of us has faced,” Wade said. Easily the most aggravating part of this entire experience is how close the Heat has been to making it an entirely different narrative. One bounce of the ball, one shuffling of feet, one less piercing whistle and everything’s different. Sunday, the Heat went through the same series of late-game failures it has re-

cently repeated. Couldn’t hold on to a double-figure lead. Suffered inexplicable droughts in the third and fourth quarters. Played disjointed basketball despite having three of the best options in the sport. James took the blame for this latest loss. James has now missed shots in four of the Heat’s last five losses that could’ve either tied the game or put his team ahead. Hence the postgame apology and ensuing promise. “Like I told my team, I’m not going to continue to fail them late in games,” James

said. “I put a lot of blame on myself [today], telling the guys that I just keep failing them late in the games, and I won’t continue to do that.” It was never confirmed that James was among those who shed tears in the locker room after the loss. But it’s not who cried that matters. It’s that anyone in that talent-filled room was brought to tears by failure. This wasn’t supposed to be like this. And with the schedule ahead, it’s not stopping anytime soon.


Underdog’s feat is inspiration for cricket’s dreamers To their delight, there was a way to combine their who has bowled against families’ mandate of a current World Cup players scholastic career and from Ireland and Canada, their love of competitive and knows the United States cricket. is not going to get one of the A born salesman named two spots for associates in Lloyd Jodah, 52, from Guythe 2015 dog-in-the-manger ana but a U.S. citizen for a World Cup four years hence. quarter century, has created As they watch this World American College Cricket, Cup, the NYU Poly cricketwhich holds a spring break ers identify with Ireland be- jamboree for scholastic cause they feel like outsiders teams from March 15 to themselves: college men March 20 in Fort Lauderwho gave up the dream of dale, Fla. The tournament professional glory. has grown from 10 to 21 to “We have a billion people, 31 teams in the first three and every one of them years. plays cricket,” said Rishabh Cricket is having a bit Natarajan, 25, from Mumbai. of a boom in the United “After a while, your parents States. Starting in April, the tell you, ‘Maybe you should Baseball Hall of Fame will concentrate on education.’ ” conduct cricket exhibitions


and exhibits of the common roots of the two sports. American College Cricket gave its John Bart King Award for the best U.S.-born player to a former football player, Ian Carlin of Wooster College in Ohio — a Pittsburgh Steelers fan, no less. On Friday, Jodah, Gordon, Natarajan and six Indian teammates — Parth Shah and Dhaval Charaiya from Ahmedabad, Rangarajan Sricharan of Chennai, Adviteeya Udaya Kumar of Bangalore, and Bhavesh Joshi and Sharmin Karbhari of Mumbai — gathered in the Australian Pub on West 38th Street. Another teammate, Azrab Cheema, a Pakistani-American, could not make it.

A replay of the tie between England and India on Feb. 27 was playing on two large screens, with Tendulkar conducting another seminar on hand-to-eye coordination and infinite patience. Any sports fan could appreciate it as he flicked the ball where it needed to go, for 120 runs that day. Shah produced a red cricket ball with raised seams — hard enough to do damage to fielders who are not permitted to wear gloves. Gordon and his mates demonstrated the proper bowling grips for fastballs and spin balls. They agreed on the best defensive play they had ever seen: a full-speed, full-extension one-handed snag by Manish

Pandey, in his white outfit and wide-brimmed black hat. Now known as the catch of the century, it took place in a trophy match in January 2010 and has been viewed hundreds of thousands of times on YouTube. “Catches win matches,” Sricharan said as the others nodded. In midafternoon, the NYU Poly players took off for a few hours of study or papers or classes — the reason they are here. The next World Cup matches would be coming up overnight. You never know what can happen, particularly when they let in the riffraff, the outsiders, the associates. Ireland beat England. Did anybody mention that?

Barcelona, Milan look to stay alive in Champions League • SOCCER, FROM 8B

ball and [stay true] to our personality, we have good chances to win. “It could be a problem for them having won the first game. They have the doubt if they should go for the game or try to protect their lead. It is not a team prepared to defend.” Barcelona coach Pep Guardiola will be without center backs Gerard Pique (suspended) and Carles Puyol (leg injury), so Eric Abidal or Gabriel Milito could come in. Arsenal will be without striker Robin van Persie and winger Theo Walcott, but

08PGB07.indd 7

central midfielders Cesc Fabregas and Jack Wilshere should win fitness battles to start. Milan, a seven-time European champion, has won four straight matches in Serie A to stand five points clear of city rival Inter, but found Spurs’ pace and quick passing too difficult to handle in the first leg at San Siro on Feb. 15. Milan defender Thiago Silva still believes his team has a chance to go through. “It will be a very difficult match for us in London, but we can do it,” Silva said. “The important matches

always go right to the end, and with the team we have, we can do that too.” Kevin-Prince Boateng is struggling to be fit for the clash with his former club after coming off injured in Milan’s 1-0 win over Juventus on Saturday. The Italians’ midfield will already be missing injured pair Andrea Pirlo and Massimo Ambrosini, and suspended midfielder Gennaro Gattuso. Winger Gareth Bale should start for Spurs after returning to action Sunday in a 3-3 draw at Wolverhampton Wanderers, having missed the last six weeks with a back injury. Playmaker Rafa-

el van der Vaart should also feature despite a recent calf problem. “We’re at home and we have to go and try to win the game. It’s not natural for us to sit on a 1-0 lead for 90 minutes,” Tottenham manager Harry Redknapp said. “We will pick an attacking team and have a go at them, that’s how we have to play.” Valencia will have top scorer Aritz Aduriz available after an ankle sprain when the Spanish team, which is third in its domestic league, travels to Schalke. New Roma coach Vincenzo Montella, meanwhile, is confident he can maintain

his 100 percent away record since taking over as coach and overturn Shakhtar Donetsk’s advantage. Since Montella succeeded Claudio Ranieri, Roma has won twice away, the latest a 2-1 victory against Lecce. “We have the team to do it,” Montella said. “We have to go there to try to win because we have a squad that is capable of doing so.” Shakhtar will rely on their phalanx of Brazilian stars, three of whom — Jadson, Douglas Costa and Luiz Adriano — scored in the first leg in the Italian capital.

EASTERN CONFERENCE Atlantic Boston New York Philadelphia New Jersey Toronto

W 46 32 32 19 17

L 15 29 30 43 46

Pct GB .754 — .525 14 .516 141/2 .306 271/2 .270 30

Southeast Miami Orlando Atlanta Charlotte Washington

W 43 40 37 26 16

L 20 23 26 36 46

Pct GB .683 — .635 3 .587 6 .419 161/2 .258 261/2

Central Chicago Indiana Milwaukee Detroit Cleveland

W 43 27 23 23 12

L 18 35 38 41 50

Pct .705 .435 .377 .359 .194

GB — 161/2 20 211/2 311/2

WESTERN CONFERENCE Southwest San Antonio Dallas New Orleans Memphis Houston

W 51 45 37 35 32

L 12 17 28 29 32

Pct .810 .726 .569 .547 .500

GB — 51/2 15 161/2 191/2

Northwest Oklahoma City Denver Portland Utah Minnesota

W 39 37 35 33 15

L 22 27 27 30 49

Pct .639 .578 .565 .524 .234

GB — 31/2 41/2 7 251/2

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

W 45 32 27 23 15

L 19 29 35 40 45

Pct GB .703 — .525 111/2 .435 17 .365 211/2 .250 28

SUNDAY’S GAMES Chicago 87, Miami 86 L.A. Lakers 99, San Antonio 83 Detroit 113, Washington 102 Philadelphia 125, Golden State 117, OT New York 92, Atlanta 79 New Orleans 96, Cleveland 81 Oklahoma City 122, Phoenix 118, OT Memphis 104, Dallas 103 Boston 89, Milwaukee 83

3/8/2011 5:46:38 AM






Barcelona, Milan look to overturn 1-goal deficits BY STEVE DOUGLAS Associated Press

‘We will see if they take us on like last year. They have players that can make the difference and there will be a lot of spaces on the pitch. But if we have the ball and [stay true] to our personality, we have good chances to win.

LONDON — European heavyweights Barcelona and AC Milan must overturn one-goal deficits when they take on north London’s finest in the second legs of their Champions League last-16 matches this week. Arsenal visits Barcelona on Tuesday vowing not to simply sit back and defend the 2-1 lead the team earned in a riveting first leg at Emirates Stadium on Feb. 16. Milan has a much tougher task on Wednesday, with the Italian leaders trailing Tottenham 1-0 go— XAVI HERNANDEZ, ing into the second leg at White Barcelona, on the game against Arsenal Hart Lane. MANU FERNANDEZ/AP In the two other second-leg matches in Europe’s elite club cit on Tuesday, while Schalke and set to be the standout fixture, escompetition this week, Ukraine’s Valencia are level at 1-1 ahead of pecially if the English side honors Shakhtar Donetsk hosts a Roma Wednesday’s game in Germany. its pledge to go on the attack at the side looking to overcome a 3-2 defiThe Barcelona-Arsenal match is Camp Nou, where it was outclassed

4-1 in last season’s quarterfinals en route to a 6-3 elimination on aggregate. Arsenal playmaker Samir Nasri said his team couldn’t replicate the style of Inter Milan, which stifled Barca by defending in numbers at the Nou Camp to eliminate the Spanish champions in the semifinals last year. “We must rely on our game if we want to win. We can’t play another game to stop them. We are not Inter Milan,” Nasri said. “We don’t have the same qualities as Inter Milan. We don’t have a Walter Samuel, Marco Materazzi or Esteban Cambiasso to kick everyone. “We have players who love football, who want to play attractive football. We will go to the Nou Camp and play our game. We are confident we can beat them.” While Arsenal goes into the

More disappointment for Miami BY ISRAEL GUTIERREZ McClatchy News Service

MIAMI — When this talentrich, superstar-heavy version of the Miami Heat was built, the only tears were expected to come as players wrapped their arms around a trophy or drenched themselves in champagne. They weren’t supposed to come from frustrated superstars soaked in failure. The only moving speeches given in the middle of a quiet locker room were supposed to be inspirational pregame messages from a coach. It was never supposed to be LeBron James apologizing for repeated failures in critical situations. This much disappointment, this kind of emotion was never supposed to be part of the package deal that came with James, Chris Bosh and Dwyane Wade. And yet, there was crying Sunday inside the Heat locker room. There was a humbled James. There were crushed hearts and somber superstars. And it’s all because the Heat lost a fourth consecutive game, and for the third time in that stretch did so by missing last-second shots that could’ve changed the entire portrayal of the team. And the situation isn’t going away. The Heat is four games into an 11-game stretch of matchups against winning teams (it has lost the first four). The next six are at home but the Heat lost its previous two at home, too. This time, it involved a phantom foul, two Chicago free throws, a James missed layup and a Wade missed jumper all of it coming in a span of 16 seconds. Bulls 87, Heat 86. Misery wins again. “When you put your heart and

game on the back of Saturday’s disappointing scoreless draw with Sunderland that stalled its Premier League title charge, Barca defeated Real Zaragoza 1-0 to stretch its unbeaten run in the Spanish league to 25 league matches — one short of the club record set in 1973-74. Lionel Messi has scored 43 goals and set up 21 more in 39 games this season and will attempt to reproduce his exploits of last year against Arsenal, when the Argentina forward struck four times at the Camp Nou in an inspired individual display. “We will see if they take us on like last year,” Barcelona midfielder Xavi Hernandez said. “They have players that can make the difference and there will be a lot of spaces on the pitch. But if we have the • TURN TO SOCCER, 7B

Napping prevalent among NBA players BY JONATHAN ABRAMS New York Times Service


UNHAPPY: Miami Heat’s LeBron James and head coach Erik Spoelstra complain about a foul in the final seconds of the fourth quarter against the Chicago Bulls in Miami on Sunday. your soul, your blood, your sweat up short again and again, it hurts,” a Regular season NBA games and your tears into something, and deflated Bosh said after the game. aren’t supposed to be this you want something so bad and it “Sometimes you just have to let • TURN TO HEAT, 7B just slips from you . . . just to come the pain teach you something.”

The All-Star point guard Steve Nash is 37 and knows that decline may come fast at his age. But his solution is not to increase his conditioning or to lift more weights. Instead, he plans to increase his nap time, seizing on an element of NBA life as common as a 3-point shot. “If you nap every game day, all those hours add up and it allows you to get through the season better,” Nash said. “I want to improve at that, so by the end of the year, I feel better.” Nash is among a great majority of NBA players who swear by their pregame nap. Most are interested in its restorative benefits, although a few may just be trying to counter boredom. Whatever the reason, balls stop bouncing and shoes stop screeching every afternoon. “Everyone in the league office knows not to call players at 3 p.m.,” said Adam Silver, the league’s deputy commissioner. “It’s the player nap.” In the United States, napping is often stigmatized, seen as evidence of laziness or a lack of purpose. But in the world of sports, and certainly in the NBA, the attitude is entirely different. “You’re nocturnal in terms of what you do, playing at night, so your body adjusts to the rhythm of being up late, getting in early in the morning,” said Grant Hill, Nash’s • TURN TO NAP, 7B

Canada beats Underdog’s feat inspiration for cricket’s dreamers Kenya in World Cup I BY GEORGE VECSEY

New York Times Service

BY GERALD IMRAY Associated Press

NEW DELHI — Captain Ashish Bagai and Jimmy Hansra both made half-centuries to set up Canada’s second-ever World Cup win as it beat Kenya by five wickets on Monday. Bagai was 64 not out and Hansra made 70, lifting Canada from 48-3 and helping it past Kenya’s 198 all out in the battle of Group A’s bottom teams at the Feroz Shah Kotla stadium in New Delhi. Kenya, the 2003 semifinalist, slumped to a fourth successive loss at this tournament. Tamnay Mishra had earlier made 51 and anchored consecutive half-century partnerships with captain Jimmy Kamande and Thomas Odoyo, who also made 51, as Kenya avoided an embarrassing collapse. However, its highest total at the tournament so far was still not enough. Canada fast bowler Henry Osinde had produced an opening burst of 3-7 to help send Kenya reeling at 57-5 before the fightback. Osinde finished with a career-best 4-26. Kenya also made early inroads into Canada’s top order. But Bagai and Hansra played with composure to put Canada back in control.

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reland beat England. This delicious upset has been the highlight of the Cricket World Cup, at least so far — particularly after some of the established cricket nations acted so huffily toward the inclusion of lesser teams. Not many people in the Americas have been able to watch one of the world’s major sporting events, held in India, Sri Lanka and Bangladesh, and pretty much confined to blurry streaming on the Web and groups watching in pubs at brutal hours. But the pull of the sport was enough to keep a bunch of prospective engineers up all night in the New York area, watching Kevin O’Brien of Ireland produce the epic batting feat of the fastest 100 runs ever in the World Cup on Wednesday. He needed only 50 balls, far below the previous record of 66 balls. An Irishman breaking a World Cup record. The nerve of him. This feat inspired the cricket team from the Polytechnic Institute of New York University — graduate students, mostly from India — who have banded together to play their sport here in the New World. This World Cup, bloated by all those cheeky outsiders, started Feb. 19 and will end April 2. The lads from NYU Poly will gather in dormitories and apartments, have a late supper and stay awake for the first ball at 4 a.m. New York


HISTORIC: Ireland’s John Mooney, right, and teammate Trent Johnston, celebrate after beating England last Wednesday. time. Good thing graduate courses are in the early evening, they say. Yes, they root for their homeland, India for most of them but

not their leading bowler, Adrian Gordon. He is from Antigua and plays for the United States, which is not among the 14 nations

participating in this World Cup. In four years, when the World Cup rolls around again, this time in Australia and New Zealand, only 10 nations will be included — perhaps all 10 test-playing nations or maybe a qualifier or two from the so-called associates, the secondary level of less powerful cricket nations. This highly exclusionary policy flies in the face of the soccer World Cup, which includes 32 teams and allows underdogs like Trinidad and Tobago, Slovenia or, dare we say it, Australia and New Zealand to have their moments. Just before this World Cup opened, Australia’s captain, Ricky Ponting, 39, saw fit to proclaim that only test-playing nations should be eligible for the World Cup. “I’m not sure how much a lot of the teams actually learn when they’re getting hammered like they tend to do in a lot of those contests,” Ponting said. True, some associates get hammered, act like tourists. The NYU Poly students laughed at the memory of the Bermuda player who asked the great batsman Sachin Tendulkar for his autograph in the 2007 World Cup. Now Ponting would open the World Cup only for nations that traditionally compete in lengthy test series. “He’s deadening my dream,” said Gordon, 23, a powerful man • TURN TO CRICKET, 7B

3/8/2011 5:39:50 AM


Edition 8 March 2011


Edition 8 March 2011