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Monday, June 9, 2014

European anti-crisis strategy: Sex, drugs, alcohol could boost economic growth

The euro sculpture is seen outside the headquarters of the European Central Bank (ECB) in Frankfurt, Germany. European governments are slowly turning to drugs, sex and contraband as a way to boost their respective economies. — Reuters pic

European governments are turning their attention to prostitution, drugs and contraband as possible ways of boosting their economic growth profiles, as they struggle away from their debt crises, AFP reports. 

Sex and drugs to add to Europe's murky GDP figures

Italy caused a stir when it announced last month that it would begin including revenues from drug trafficking and the sex trade, as well as contraband tobacco and alcohol, to calculate gross domestic product (GDP) from next year.

One effect would be to reduce the public deficit as a ratio of output, if EU authorities were to accept the idea. That would be a big help to countries trying to get their public deficits below the EU ceiling of 3.0 percent of output.

In 2012, Italy's central bank estimated the value of the criminal economy at 10.9 percent of GDP. Including these figures could therefore boost the country's growth to above the government's 1.3 percent estimate.

Last month, Britain said including illegal activities such as prostitution and drugs into national accounts would add about 10 billion pounds (12.3 billion euros, $16.8 billion) to GDP, equivalent to about one percent of national output.

Using the undeclared or so-called black economy to calculate national statistics is part of a range of changes recommended by the European Union's statistical institute, Eurostat, to be implemented in September.

Eurostat said including such data would allow a better comparison between countries with different laws.

"GDP is not an indicator of morality," said a spokesman, adding that only transactions carried out consensually would be included.

But others are less convinced.

Eric Vernier, researcher at the Institute of International Relations, said including "gross criminal product" in growth figures is a cynical attempt to combat the Eurozone's debt crisis.

"The problem is to put this new statistical method on the table at the moment when everyone has budget problems," he said.

"There has been a general acceptance of this accounting approach since the crisis: what matters most is what goes into the state coffers."

"Denial of basic morality"

Many of Europe's struggling governments will welcome any boost to growth figures that will reassure both disillusioned voters and markets.

But the decision has sparked outrage among politicians and rights groups.

The French minister for women's rights Najat Vallaud-Belkacem and Belgium's Interior Minister Joelle Milquet, have both written to the European Commission to express their "astonishment" over the proposals.

"Prostitution is not a voluntary commercial activity. To believe that it can have an ideological bias is a mirage and an insult to the millions of victims of sexual exploitation worldwide", they said.

"Prostitution cannot be assumed to be a transaction freely agreed between parties. The question also arises concerning drugs, especially hard drugs, considering the issue of addiction," added Ronan Mahieu, head of INSEE, which calculates France's GDP.

A spokeswoman for the Association for the Protection of Women's Rights in Britain said the group was "surprised and saddened" by the decision.

While in France, Marine Le Pen, the leader of the extreme-right National Front party which came top in recent European Parliament elections, described it as a "denial of basic morality."

'Shadow market'

Europe's black market is already huge, according to experts.

Friedrich Schneider, professor at the Johannes Kepler University of Linz in Austria, estimates that the European Union's "shadow market" is equal to 18.6 percent of the bloc's 2014 GDP.

But calculating the value of illegal activities is no easy task.

An EU document from 2012, littered with acronyms and complex mathematical formulas, gives guidelines on how to calculate the "inputs" of the prostitution industry, such as the cost of renting an apartment, or "transport and storage" for drug traffickers.

It even includes how to interpret the "ratio of purity" in narcotics.

Schneider argues that undeclared illegal activities and "value creating" services such as prostitution should be included in the calculations, but not totally criminal activities.

On this basis, Germany, Italy and France account for about half of Europe's black-market activities.

In recession-hit Greece, he estimates that black market transactions account for an estimated 23 percent of GDP, lower than the estimated 40 percent of the less-developed economies of Eastern Europe, but far higher than the roughly eight percent in Luxembourg. - AFP

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Saturday, June 7, 2014

WW2 D-Day remembered in Normandy France; China praises Germany, slams Japan for denial of its brutal history



China praises Germany, slams Japan

(Reuters) - China used the 70th anniversary of World War Two's D-Day landings on Friday to praise Germany for its contrition over its wartime past and slam Japan for what Beijing views as Tokyo's continued denial of its brutal history.

China has increasingly contrasted Germany and its public remorse for the Nazi regime to Japan, where repeated official apologies for wartime suffering are sometimes undercut by contradictory comments by conservative politicians.

Ties between the two Asian rivals worsened on Dec. 26 when Japanese Prime Minister Shinzo Abe visited Tokyo's Yasukuni Shrine, which China sees as a symbol of Tokyo's past militarism because it honors war criminals along with millions of war dead.

"Germany's sincere remorse has won the confidence of the world," Chinese Foreign Ministry spokesman Hong Lei said at a daily news briefing, when asked about the D-Day anniversary.

"But in Asia on the Asian battlefield, the leaders of Japan, which caused harm and which lost the war, are to this day still trying to reverse the course of history and deny their history of invasion," Hong added.

"What Japanese leaders are doing has been widely condemned in the international community. We again urge Japan's leaders to face up to and deeply reflect on the history of invasion and take real steps to correct their mistakes to win the trust of its neighbors in Asia and in the international community."

Japan's government and Abe himself have repeatedly said that Japan has faced up to its past sincerely.

(Reporting by Ben Blanchard; Editing by Nick Macfie)

Japan urged to correct mistakes as D-Day remembered

BEIJING, June 6 (Xinhua) -- China on Friday urged Japan to reflect on its aggression past and correct mistakes with practical actions, as international D-Day commemorations were held.

Foreign Ministry spokesman Hong Lei said at a daily press briefing, "We again urge Japanese leaders to face up to and remember its aggression past, correct mistakes with tangible actions and win the trust of Asian neighbors and the international community."

Among international commemorations of the 70th anniversary of D-Day being held, one was in Normandy, France.

Hong said as far as the Second World War is concerned, Europe has turned over a new page. Quoting an old Chinese saying, he said, "Past experience, if not forgotten, is a guide for the future."

Hong said, "Germany has won world respect by sincerely apologizing for its wrong-doing.

"Yet leaders of Japan, a defeated country in World War II, are still attempting to deny its past and challenge the post-war international order, thus their acts are widely condemned by the international community."

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HMS Bulwark (library photograph) HMS Bulwark will be part of a flotilla heading to France from Portsmouth

Friday marks 70 years since the allied troops in the Second World War landed in Normandy. Ceremonies large and small have been taking place on both sides of the English Channel.

WWII veterons attend a Drumhead Service on Southsea Common in commemoration of the D-Day landings on June 5, 2014 in Portsmouth, England.
WWII veterons attend a Drumhead Service on Southsea Common in commemoration of the D-Day landings on June 5, 2014 in Portsmouth, England.

In the southern English naval base of Portsmouth, which was the departure point for troops heading to Sword Beach, one of the main landing points, British Royal Marines acted out military exercises for thousands of veterans who gathered on Thursday to make the crossing for the commemorations.

While over in northern France, 300 soldiers from the US, UK, Canada and France parachuted in tandem over the village of Ranville, and World War II planes flew over Utah Beach. Thousands of Allied troops flew or parachuted onto the German-occupied French soil during the early hours of June 6th, in 1944, catching the German army by surprise. But the price was high, nearly 4,500 were dead by the end of the day.

With many D-Day veterans now in their 90s, this year could be the last time that many of those who took part in the battle, will be able to make the long journey back to Normandy and tell their stories. The main D-Day ceremony will be held in Ouistreham, a small port that was the site of a strategic battle on D-Day. Some 18 heads of state are expected to attend the commemorations.


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Friday, June 6, 2014

American hegemony cannot bring security to Asia

American defense secretary Chuck Hagel delivered a speech at the Shangri-La Defense Dialogue in Singapore on May 31st. In response to this irresponsible speech, the deputy chief of the General Staff of the Chinese People's Liberation Army Wang Guanzhong pointed out that Hagel's speech was filled with terms that will incite unrest in Asia.  Images for American hegemony cannot bring security ...

American defense secretary Chuck Hagel delivered a speech at the Shangri-La Defense Dialogue in Singapore on May 31st. In addition to defending America's pivot to the Asia-Pacific region, he also declared that the Diaoyu islands fall under the mutual defense treaty with Japan and voiced support for Japan's right to collective self-defense. Moreover, he placed emphasis on his criticism of China and made use of many threatening words.

In response to this irresponsible speech, the deputy chief of the General Staff of the Chinese People's Liberation Army Wang Guanzhong pointed out that Hagel's speech was filled with terms that will incite unrest in Asia. China had not foreseen that Hagel would deliver such an offensive speech. His accusations against China were unreasonable.

In order to maintain its hegemony and enjoy an economic dividend from the rapid development of Asia, America has devised a series of new Asia-Pacific strategies such as “Back to Asia”, “Pivot to Asia” and “U.S. Asia-Pacific Re-balance Strategy” to expand its military presence in Asia. America's so called “U.S. Asia-Pacific Re-balance Strategy” has increasingly aroused concern and anger among many of the countries affected on the one hand, and become the butt of criticism of influential strategists at home. We find ourselves in total disagreement with Hagel's groundless accusations - he would do well to subject himself to similar critical analysis.

As is widely accepted, the Diaoyu Islands, Xisha, Zhongsha and the Nansha islands have formed an integral part of China's territory since ancient times - there is no shortage of historical and legal evidence to support China's claims. China has nevertheless shown great restraint and patience in its calls for regional peace and stability, even when confronted with unreasonable demands and provocation on the part of other countries. China has exercised military restraint over the issues concerning the Diaoyu Islands, Huangyan Island and even the Xisha islands. Meanwhile, Japan's 'Self-Defense Force' jets have incessantly intruded into the East China Sea, far from the Diaoyu Islands to harass and threaten unarmed Chinese patrol aircraft.

Ships of the Philippine navy have harassed and threatened defenseless Chinese fishermen. Armed Vietnamese vessels have deliberately collided with Chinese government ships and fishing boats. China has never yet drilled a single oil well in the South China Sea, while countries such as Vietnam and Philippines have long been producing oil and gas in the area. We are curious about Hagel's motives in directing his accusations against China, while ignoring the efforts and sacrifices made by China in the interests of regional peace and stability.

Hagel's criticism of China as a 'rule-breaker' is a typical example of the hypocrisy of American politicians. The United Nations Convention on the Law of the Sea has met with approval from more than 150 countries since it was passed some thirty years ago. In pursuit of its own interests America, the self-styled “world policeman” and “supreme power” did not join the convention. With its own history of double standards, America has no business agitating for international laws and rules and attacking other countries for not abiding by these international rules.

China is no longer the downtrodden victim that it may have been one hundred years ago. China has no intention of stirring up trouble, but it will not sacrifice core national interests. Even in the face of provocation from Japan, the Philippines, and Vietnam, China remains tolerant and insists on peaceful settlement of disputes through bilateral negotiations. However, China is still forced to take counter-measures. We hope the nations involved do not interpret our tolerance as a sign of weakness. We hope they will turn back to the path of solving disputes through negotiation. Moreover, we also wish that America would abide by its promise of not taking sides in sovereignty disputes in Asia. In this way regional peace and stability and the long-term interests of nations in the region can be secured.

The countries mentioned above would be considerably less presumptuous without the support of America. In this sense, America is the chief instigator of unrest in Asia. America's insistence on its policy of hegemony offers nothing to Asian security and serves only to fuel disorder.<

Source: (People's Daily Online)    10:11, June 06, 2014
The article is edited and translated from《美国霸权带不来亚洲安全》, source: People's Daily Overseas Edition, author: Zhang Junshe, a researcher with the Navy Military Academic Research Institute.

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Thursday, June 5, 2014

China rejects arbitration tribunal South China Sea ruling ; History backs China in sea disputes

China on Wednesday rejected a Hague-based arbitration tribunal's ruling giving it six months to respond to a legal claim by the Philippines over disputed waters in the South China Sea.

China's stance of not accepting or participating in the arbitration proceedings filed by the Philippines has not changed, Chinese foreign ministry spokesperson Hong Lei said at a regular briefing on Wednesday.

The response came after the tribunal of The Permanent Court of Arbitration in The Hague, the Netherlands, issued a statement on Tuesday, which requires China to submit evidence to defend its territorial claims in the South China Sea before December 15.

The tribunal cited an obligation to assure "each party a full opportunity to be heard and to present its case," according to a Tuesday statement.

The Philippines in March filed a memorandum to the international arbitration under the United Nations Convention on the Law of the Sea (UNCLOS), questioning the validity of China's "nine-dash" territorial claim.

However, experts said that without a bilateral agreement, the UNCLOS has no jurisdiction to interfere in sovereignty issues, which made China's stance reasonable and lawful.

"The international arbitration procedure must be agreed by both parties. If China rejects participating, the arbitration will not work," Ji Qiufeng, a professor of international relations with Nanjing University, told the Global Times.

Ji noted that the international tribunal is most likely to withdraw the Philippines' case.

"It will be a wise decision for the international tribunal as it lacks power to enforce. Even if the tribunal makes a judgment by default, China will not accept its verdict," Ji said. "The tribunal may lose its credibility."

The United States has said it supports the Philippines' arbitration case, which is closely watched by other claimant countries including Vietnam, which said last month it was considering legal action against China after a Chinese oil rig started to operate in waters near the Xisha Islands that Hanoi claims as it territory.

Ji pointed out that Vietnam's legal threat is very likely to depend on the result of the Philippines' case. "As China stands firm against the Manila plea, Hanoi should be aware that the threats would prove in vain."

- By Hu Qingyun Source:Global Times Published: 2014-6-5 0:43:01

History backs China in sea disputes

China has been criticized by some countries for making "ambiguous" claims on the islands, islets, reefs and waters in the South China Sea. For example, it has been criticized for "failing to honor" the United Nations Convention on the Law of the Sea despite being a signatory to it, as well as for "violating" other international laws on the sea.

A few international observers also accuse China of deliberately obscuring its territorial claims in the South China Sea by using terms not found in the UNCLOS, such as "adjacent waters" and "relevant waters". And some countries keep demanding that China "clarify" its nine-dash line map.

The fact is that, if these countries do not change their mindset and attitude, the nine-dash line will continue to be vague for them irrespective of how clearly China defines it.

China has an unequivocal and consistent territorial claim on the islands and other land features in the South China Sea. As a matter of fact, it has unequivocally stated its claim in three official documents: the 1947 Location Map of the South China Sea Islands released by the Kuomingtang government in Nanjing, the 1958 Declaration of the Government of New China on the Territorial Sea and the 1992 Law on Territorial Sea and Contiguous Zone. These documents state that the Dongsha Islands, Xisha Islands, Zhongsha Islands, Nansha Islands and other islands are part of the sovereign territory of China.

Some countries view China's maritime claim in the South China Sea as ambiguous because of certain historical reasons. The first reason is that the UNCLOS does not properly address the issue of historic rights. Despite the reference to historic title in Articles 15 and 298(1)(a), the provision on historic bays in Article 15(6), and the recognition of traditional fishing rights in Article 51, it does not have any provision for the definition of historic rights or their specific connotation and denotation.

The second is that no consistent understanding has been reached in international law on historic rights. For example, Yehuda Z. Blum, an Israeli professor of law and diplomat, has observed: The term "historic rights" denotes the possession by a state, over certain land or maritime areas, of rights that would not normally accrue to it under the general rules of international law, such rights having been acquired by that state through a process of historical consolidation ... Historic rights are a product of a lengthy process comprising a long series of acts, omissions and patterns of behavior which, in their entirety, and through their cumulative effect, bring such rights into being and consolidate them into rights valid in international law.

Besides, a state acquires historic rights through effective exercise of these rights (long series of acts, omissions and patterns of behavior) by one or more states, a practice followed by relevant states. The concept of historic rights is almost equivalent to that of historic water.

In this vein, Leo Bouchez, a renowned international law professor, says the concept of "historic rights" has evolved from the concept of "historic water" and "historic bays". The development from "historic bays" to "historic water" and from "historic title" to "historic rights" indicates the evolution of legal concepts with the development of state practice, and that such concepts have not been finalized.

From the point of view of China, one of the world's oldest civilizations, the South China Sea is part of the traditional Asian order and, hence, it would be inappropriate to comprehend the nine-dash line by relying solely on the Westphalian nation-state system.

As Keyuan Zou, Harris professor of International Law at the University of Central Lancashire in the UK, has observed, the South China Sea nine-dash line map was officially released by the Chinese Kuomingtang government half a century before the UNCLOS, and one decade before the 1958 Four Geneva Conventions on the Law of the Sea. Thus, China's historic rights within the nine-dash line cannot be ignored. The nine-dash line drawn by the Chinese government in 1947, at approximately the median position between China's South China Sea islands and reefs and the coastlines of bordering states, reflects the scope of China's claims. The consistency of the claims has been maintained by China after 1949, and the claims have been recognized or acquiesced to by bordering states over a long period of time. Therefore, the nine-dash line has probative force and weight under international law.

The so-called ambiguity in China's nine-dash line map and its claim on the waters within that line mainly stems from the imperfection of the UNCLOS. To some extent, international law on historic rights is defective in theory and doctrine and lacks a unified standard.

China has been striving to clarify its claim in the South China Sea. But the joint efforts of the international community are also needed to complement and improve the UNCLOS by agreeing to a new international convention or protocol in order to clarify the understanding of historic rights.

The author is deputy director of Maritime Security Institute at East China University of Political Science and Law in Shanghai. The views expressed are personal. His most recent book is Legal Interpretation of China's South China Sea Map: An Inclusive Approach to Ocean Public Order.

- By Zheng Zhihua (China Daily)

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  • once clearly stated that Huangyan Island in the South China Sea is not part of its territory, but now it swallowed its words and raised illegal territory claim over an island which belongs to China,“ Liu said at a regular press briefing. “Such a claim runs against the basic principles of international...
  • Commentary: Abe's wishful anti-China thinking exposed at G7 summit

  • Commentary: Abe's wishful anti-China thinking exposed at G7 summit. by Xinhua writer Chen ShileiBEIJING, June 5 (Xinhua) -- Japanese Prime Minister Shinzo Abe must feel disappointed now.The Group of Seven (G7) summit on Wednesday wisely stopped short of taking a pro-Japan stand over the East China Sea...
  • China hopes for no more Huangyan Islands conflicts: FM

  • agreed upon. Philippine Foreign Secretary Albert del Rosario said Tuesday that the Philippine government has taken the South China Sea disputes to an Arbitral Tribunal under the United Nations Convention on the Law of the Sea (UNCLOS). Related stories Historical proof of China's sovereignty over Huangyan...
  • China requests Philippines' reassurance on detained fishermen

  • he added. Related stories Philippines, China to hold business forum 2013-04-08 Philippines hopes to enhance cooperation with China 2013-03-14 China reiterates opposition to Philippines' arbitration bid 2013-02-20 China rejects Philippine submission on South Chian Sea disputes 2013-02-20 ...
  • China hopes Philippine can receive China's Embassy in a courteous fashion

  • Chinese, Philippine vessels still remain in Huangyan island 2012-04-26 South China Sea tension runs up after US-Philippines drill 2012-04-26 Beijing urges restraint in S China Sea 2012-04-26 Huangyan Island confrontation can be solved through diplomacy: China 2012-04-26 ...
  • China urges Vietnam to punish riot perpetrators

  • Protests broke out about two weeks ago in some Vietnamese cities and escalated into looting and violence targeting Chinese enterprises and nationals following Vietnam's disruptions to China Oilfield Services Limited's normal drilling in waters off China's Xisha Islands in the South China Sea. The violence...
  • Chinese lawyers vow to carry on despite French court rule on looted bronzes

  • to the Tribunal de Grande Instance in Paris last Thursday, seeking an injunction to stop the auction at Christie's, by the plaintiff, the Association for the Protection of Chinese Art in Europe (APACE). The court ruling said the APACE was not entitled to file the motion because it did not have direct...
  • Island belongs to China

  • the government announced a new list of South China Sea islands, in which Scarborough Shoal was also included and renamed as Democratic Reef, and in 1983, China released a list of some South China Sea islands and began to use Huangyan Island as the island's standard name. While China has legal foundations...
  • Beijing rejects island dispute comments

  • Beijing rejects island dispute comments. Manila's claims over territory make no sense, FM says Beijing on Tuesday criticized Manila's attempt to expand the Huangyan Island dispute over the entire South China Sea and rejected Manila's accusation over the freedom of navigation. Huangyan Island has been...
  • Full Text of Human Rights Record of the United States in 2011

  • percent of middle-aged adults, aged between 35 and 54, reported to own guns, and the adults' gun ownership in the south region was 54 percent (The China Press, October 28, 2011). The New York Times reported on November 14, 2011, that since 1995, more than 3,300 felons and people convicted of domestic...
  • China Voice: No compromise on Diaoyu Islands

  • China Voice: No compromise on Diaoyu Islands. BEIJING, June 5 (Xinhua) -- State sovereignty and territorial integrity are among China's core interests. Hopes of any compromise, however small, on the Diaoyu Islands issue are delusional.“We will not compromise on, concede or trade on territory and sovereignty,...
  • China urges Japan to stop provocation

  • China urges Japan to stop provocation. BEIJING, May 23 (Xinhua) -- China on Friday urged Japan to stop provocation after Japanese leader Shinzo Abe said China's “unilateral drilling“ created tensions in the South China Sea. “We urge Japan to stop all provocative comments and acts and take practical action...
  • China opposes Philippine UN request

  • resort to UN tribunal complicates South China Sea issues 2013-01-24 China: UN request by Philippines complicates S. China Sea issues 2013-01-23 Philippines sends China to UN arbitral tribunal 2013-01-22 ...
  • China, UN to hold cyber security meeting

  • China, UN to hold cyber security meeting. BEIJING, June 3 (Xinhua) -- China and the United Nations (UN) will hold an international symposium on information and network security in Beijing on Thursday and Friday, said Foreign Ministry spokesman Hong Lei on Tuesday. It will be the first international conference...

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