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Friday, April 27, 2012

UK Banking Rules Risk Bank's Future Market Value

Royal Bank of Scotland Group Plc may lose as much as 20 billion pounds ($32 billion) from its future market value because of planned U.K. regulatory changes, Chief Executive Officer Stephen Hester said. 

The “regulatory environment has changed even more dramatically than we bargained for,” Hester said in the text of a speech at the Manchester Business School yesterday. “U.K. regulatory reforms on their own have probably cost 10 to 20 billion pounds from our future market value.”

The government-sponsored Independent Commission on Banking recommended in September the U.K.’s biggest banks should boost capital, implement plans for an orderly bankruptcy and erect fire breaks around their consumer units to boost the stability of the financial system.

The proposals also mean that banks will no longer be allowed to use their consumer units to provide cheap funding for investment-banking units.

Greater regulation is adding to a slower-than-expected economic recovery and turbulent markets, said Hester, 51. The British economy shrank in the first quarter as Britain slid into its first double-dip recession since the 1970s, figures from the Office for National Statistics showed.

“We can cope with these extra challenges, but they use up the outperformance we have achieved and they mean that our shareholders, indeed all bank shareholders, will see value recover less well than hoped,” he said.

Two More Years

The government was forced to rescue RBS at the height of the financial crisis, injecting 45.5 billion pounds of taxpayer money into the lender, making it the costliest bailout of any bank in the world.

Hester said in the speech that the cost of cleaning up the lender he inherited from former CEO Fred Goodwin totals 43 billion pounds so far.

RBS still has two more years of “heavy lifting, significant clean-up costs and vulnerability to outside events” as it restructures its business, Hester said.

RBS fell 0.3 percent to 23.2 pence at the close of London trading yesterday. The shares have rallied 15 percent this year, boosting the Edinburgh-based lender’s market value to about 26 billion pounds. The U.K., which owns 82 percent of the lender, paid an average of 50.2 pence a share for its holding.

To contact the reporter on this story: Gavin Finch in London at gfinch@bloomberg.net

To contact the editor responsible for this story: Edward Evans at eevans3@bloomberg.net

Fragile British economy enters double-dip recession

LONDON, April 25 (Xinhua) -- Britain's economy has fallen into double-dip recession after official figures showed its economy shrank in the first quarter this year.

The Office for National Statistics (ONS) said Britain's gross domestic product (GDP) contracted 0.2 percent in the first three months 2012, meaning the country has slipped back into recession.

Technically, a recession occurs after two consecutive quarters of negative growth. The ONS figures said Britain's GDP in the last quarter of 2011 dropped by 0.3 percent. Britain last experienced recession in 2009.

A HEAVY BLOW

The worse-than-expected economic growth figure has dealt a heavy blow for the ruling coalition led by Prime Minister David Cameron.

The prime minister and Finance Minister George Osborne were "very disappointed" at the figures.

Cameron said: "I don't seek to excuse them. I don't see to try to explain them away. There is no complacency at all in this government in dealing with what is a very tough situation that frankly has just got tougher."

Osborne in his March budget forecast growth of 0.8 percent this year and 2 percent next year. In 2014, 2.7 percent was forecast, followed by 3 percent growth the following years.

The current 0.2 percent contraction in GDP is bad for the coalition government as it desperately seek to grow the economy and eliminate the country's large budget deficit over the next five years.

The government is set to unveil new measures to further limit public spending as part of the government's efforts to meet its austerity targets. Under the new rules, government departments will have to set aside 5 percent of their annual budget to cover unexpected expenses in a bid to discourage them from asking for more money from the central government when emergencies arise.

Osborne said: "It's a very tough situation when you're recovering from these enormous debts that Britain built up in the good years."


Cameron added it was "painstaking, difficult" work, but the government world stick with its plans and do "everything we can" to generate growth.

Labor party leader Ed Milliband said the figures were catastrophic, blaming the government's economic policies for landing the country back in recession.

A GLOOMY OUTLOOK

The latest data from the ONS is consistent with a report released by the OECD predicting the British economy would shrink in the first quarter of 2012, taking it back into recession.

Meanwhile, economists and research institutes have warned that Britain's economy will continue to struggle with factors such as high inflation, rising unemployment and uncertainty in its exports market, which is strongly affected by eurozone debt.

According to the ONS, the recession was mainly driven by a sharp fall in construction sector, which contracted 3 percent and 0.2 percent in the last two quarters. At the same time, the manufacturing sector failed to return to growth.

The services sector, which accounts for a third of the economy, grew only 0.1 percent in the first quarter this year, after a decline of 0.1 percent in the previous quarter.

Production industries output also declined 0.4 percent in the first quarter of this year, and 1.3 percent in the previous quarter.

The latest report issued by the Ernst & Young Item Club said Britain's jobless rate is forecast to rise to 9.3 percent in the middle of next year from the current 8.4 percent, with the number of those seeking work rising to almost 3 million.

Britain's Consumer Price Index (CPI), a major gauge for inflation, will reach 2.8 percent this year and drop to 2.1 percent next year.

The country's consumer spending power continued to deteriorate in March, dropping by 1.1 percent compared to a year earlier, reaching the lowest level since February 2011. - 
Xinhua

Thursday, April 26, 2012

South China Sea Islands Dispute; US won't take sides

Beijing rejects island dispute comments

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 an integral part of China's territory since ancient times, and the Philippines' groundless claim over the island's sovereignty is "the fundamental cause" of the complicated situation, Chinese Foreign Ministry spokesman Liu Weimin said. 

His remarks were made in response to Philippine Foreign Secretary Albert del Rosario, who accused China on Monday of "claiming virtually the entire South China Sea". 

"Expanding the Huangyan Island dispute to involve the entire South China Sea makes no sense," Liu said at a daily news conference.

Also on Monday, the foreign secretary said "the message is" that China "can set the rules for anybody".

"I think the current standoff is a manifestation of a larger threat to many nations," del Rosario told ABS-CBN TV network in an interview.
Philippine Department of Foreign Affairs spokesman Raul Hernandez also said that China is posing "a potential threat to freedom of navigation as well as unimpeded commerce in the area".
Beijing on Tuesday responded that freedom of navigation in the South China Sea "has never been an issue", and China's long-term exercise and protection of sovereignty over the island "has never and will not influence" freedom of navigation in the waters.
On the contrary, Manila's recent decision to send a warship to the island and dispatch personnel for a forced inspection of Chinese fishing boats triggered the existing tension, said the Chinese spokesman.
"Manila's moves unavoidably gave rise to massive concerns over security in the related waters," Liu added.
Yang Baoyun, a professor of Southeast Asian studies at Peking University, said Manila's current remarks and stances "show few signs of sincerity" to resolve the dispute.
No country is allowed to misuse international laws to serve its interest, Yang said, adding that Manila did not lay territorial claim to the island until 1997.
Hernandez also said on Monday that Manila planned to exchange views with Washington on the island dispute during the upcoming "2+2" US-Filipino talks, scheduled to start on Monday.
"Generally, a country does not take sides on other countries' sovereignty disputes. And we have noticed that none of the other countries has taken sides on the issue," said Liu, the spokesman.
Manila's standoff against Beijing in the waters of Huangyan Island entered its fifteenth day on Tuesday.
On April 10, 12 Chinese fishing boats were harassed by a Philippine warship while taking refuge from harsh weather in a lagoon near the island. Two Chinese patrol ships in the area later came to the fishermen's rescue, and the warship left.
The Chinese fishermen returned home, but the standoff remains. There were still two Philippine vessels and one Chinese ship in the waters on Tuesday.
Xinhua News Agency on Monday reported that two Chinese vessels, a Fishery Administration ship and a Chinese Maritime Surveillance ship, left the area on Sunday.
"The withdrawal of the two ships proves once again that China is not escalating the situation as some people said, but de-escalating the situation," said Zhang Hua, spokesman for the Chinese Embassy in the Philippines.
China is ready to settle this incident through friendly diplomatic consultations, Zhang added.
(Source: China Daily)

US won't take sides in South China Sea dispute

Updated: 2012-05-02 12:24 By Zhao Shengnan (China Daily) 
The United States said on Monday that it would not take sides in the Huangyan Island standoff between China and the Philippines in the South China Sea and reiterated support for a diplomatic resolution to the territorial dispute.

Washington does not take sides on competing sovereignty claims there, but has a national interest in maintaining freedom of navigation as well as peace and stability, US Secretary of State Hillary Clinton said, after meeting top diplomatic and defense officials from the Philippines.

Philippine Foreign Secretary Alberto del Rosario and Defense Secretary Voltaire Gazmin attended the 2+2 dialogue with their US counterparts, Clinton and Leon Panetta, in Washington.

"The United States supports a collaborative diplomatic process by all those involved for resolving the various disputes that they encounter," Clinton said. "We oppose the threat or use of force by any party to advance its claims."

Gazmin alluded to tension with China over islands in the South China Sea as he called for the need to "intensify our mutual trust to uphold maritime security and the freedom of navigation".

"We should be able to work together to build a minimum, credible defense posture for the Philippines, especially in upholding maritime security," Gazmin said.

The Philippines and China have been embroiled in the Huangyan Island dispute, with both nations stationing vessels there for nearly three weeks to assert their sovereignty.

China on Monday highlighted remarks made by the Philippine president about de-escalating the tension over the island, urging the Philippines to "match its words with deeds" and return to the proper pathway of diplomatic solutions.

Speaking of the tension, Philippine President Benigno Simeon Cojuangco Aquino III said he had issued instructions to his military, telling them not to intensify the issue.

Chinese Foreign Ministry spokesman Liu Weimin stressed that there is no change in China's stance of using diplomatic channels to peacefully resolve the issue, which was triggered when a Philippine warship harassed Chinese fishermen and raised concerns over China's sovereignty of the island.

The Philippine officials also stressed diplomacy when asked what aid they had requested from Washington, saying that Manila sought to bring the South China Sea issue to international legal bodies.

Clinton reaffirmed the US commitment to the 60-year-old Mutual Defense Treaty with the Philippines, calling the Philippines a country "at the heart" of the new US strategy toward the Asia-Pacific.

Washington would help improve the Philippines' "maritime presence and capabilities" with the transfer of a second high-endurance (coast guard) cutter this year, Panetta said.

The US emphasis on neutrality and a diplomatic resolution would encourage Manila to be more restrained on the Huangyan Island issue, said Fan Jishe, a US studies expert at the Chinese Academy of Social Sciences.

"Washington doesn't want territorial disputes between its Asian allies and China to be obstacles to China-US relations," he said.

Xinhua and Reuters contributed to this story.

Wednesday, April 25, 2012

Politics is part of life, leave it to the professional, says Michelle Yeoh



KUALA LUMPUR: As much as she loves portraying Myanmar democracy icon Aung San Suu Kyi in The Lady, Datuk Michelle Yeoh says she has no interest in joining Malaysian politics.

The politically-inclined celebrity will, however, be back in the country to cast her vote in her hometown of Ipoh for the general election.

Yeoh: I believe in good causes, but will leave politics to the professionals.

“Being an actor is hard enough,” the Malaysian superstar reiterated during an interview with The Daily Chilli, a news portal for The Star.

“I believe in good causes, but will leave politics to the professionals. Politics is part of life. To make a difference in your country, you have to cast your vote,” she opined.

Citing that she finds it hard to transform herself from a public figure to a politician, Yeoh added:

“It will be a difficult transition for me. I don't have the guts. Politics is about compromise. There is no right or wrong. That's why we have different political parties.”

Yeoh was in town to promote The Lady, a Luc Besson film on the personal struggle of Suu Kyi.

During her whirlwind promotional tour here, the good-hearted actress graced charity screenings for Swiss Watch Extraordinaire, Richard Mille and the Malaysian Chinese Women Entrepeneurs Association.

Distributed by GSC Movies, The Lady will be released in selected cinemas here and in Penang, Ipoh and Malacca on May 3.

By NOORSILA ABDUL MAJID newsdesk@thestar.com.my

Beware of Aussie's “Asian dogs and pussies” attacking Chinese and Indian!

SYDNEY, AUSTRALIA - APRIL 29:  A commuter read...
SYDNEY—Australia’s Mandarin-speaking ex-leader Kevin Rudd on Tuesday weighed into the case of two Chinese students who were burned and beaten in Sydney, sparking a media storm in their homeland, reports said.

Police confirmed that a 29-year-old man “suffered a fractured cheekbone and nose… as well as burns from a lit cigarette” during a robbery by six youths on a train in southern Sydney on Monday.

“A second male victim also suffered burns to the face during the alleged robbery,” police said in a statement.

One of the victims was identified as a Chinese blogger named Xuan studying for a masters degree in Sydney, who posted about the graphic attack on the microblogging site Sina Weibo.

“A gang of hooligans attacked us. Our noses are fractured and our bodies are covered in blood,” wrote Xuan, according to a translation in the Sydney Morning Herald newspaper.

“My friend’s cheekbone was crushed. They attacked us with glass and burnt us with lit cigarettes. My face is burnt and totally disfigured. Worst of all, I really hated their racist comments.”

Xuan claimed the group taunted them as “Asian dogs and pussies” and when his friend tried to wipe the blood from his nose “a teenaged girl stuffed my friend’s mouth with her tampon removed from her pants.”

There were many passengers and staff on the train, he added, but nobody intervened to help and another woman targeted by the gang even encouraged them to rob Xuan and his friend saying “they are Asian and they have got money.”

Xuan’s post about the attack was reposted on Weibo, China’s answer to Twitter, more than 10,000 times according to the Herald, and Australia’s ex-PM and former foreign minister Kevin Rudd also spoke up on the site.

Weibo newcomer Rudd wrote that he would “try to approach the police and department of education” about the incident, the Herald said.

Australia has gained an unwelcome reputation for violence against international students in recent years, with a string of attacks involving Indian students in southern Melbourne triggering diplomatic tensions.

There was intense publicity in India about the assaults, which included the stabbing murder of accounting graduate for his mobile phone, and Canberra conceded that some of the violence was racially motivated. - AFP

'This city is so dangerous': outrage in China over Sydney train assault 

Peter Cai
Will try to approach police ... a screen grab of Kevin Rudd's message on Weibo. 

A terrifying gang assault on Sydney train passengers has left two international students seriously injured and caused a media storm in China.

The alleged robbery, including racist taunts, drew a social media pledge from former foreign affairs minister Kevin Rudd and led to emergency talks at Sydney's Chinese consulate general.

Police said six people, aged 14 to 18, robbed passengers on a train between Central and Rockdale about 12.30am yesterday.

A picture from Xuan's blog. A picture from Xuan's blog. >>

Officers were called to Rockdale station about 15 minutes later, where they arrested three men, two aged 18 and one 19, a 14-year-old boy and two girls, aged 16 and 17.

They were all charged with a number of robbery and assault offences.

Yesterday's attack came just days after two safety warnings from the Chinese embassy in Canberra for citizens travelling in Australia. Many Chinese students studying in Australia have expressed their fear over growing violence directed against them.

One of the victims of the attack, known as Xuan, suffered from a fractured nose and burns from a lit cigarette.

The international student from China, seeking a master's degree at the University of Technology, Sydney, was travelling with a friend from Central to Rockdale when the attack happened.

A translation from Xuan's blog on the Chinese social media site Weibo reads: “I really wish all of this is just a nightmare. However, the smell of blood in my mouth and body pains reminds me that this city is so dangerous.

“A gang of hooligans attacked us. Our noses are fractured and our bodies are covered in blood. My friend's cheekbone was crushed. They attacked us with glass and burnt us with lit cigarettes. My face is burnt and totally disfigured! Worst of all, I really hated their racist comments.

“They were calling us Asian dogs and pussies while they were beating us. When my friend tried to wipe blood from his nose, a teenaged girl stuffed my friend's mouth with her tampon removed from her pants.”

Another woman passenger, who was also targeted by the thieves, allegedly told the attackers to “rob them, they are Asian and they have got money”.

Xuan and his friend were treated at St George Hospital in Sydney's south-west.

He said he would now take leave from study and return to China.

The incident has caused outrage in the Chinese student community across the country and Xuan's initial post was re-tweeted more than 10,000 times. Thousands of Chinese students have expressed their disgust online.

The incident has made headlines acrosss China, including on the popular news sites Sina News and the English language Shanghai Daily.

Chinese consular officials have also publicly expressed their support for the students. Fairfax Media understands that officials met at the Consulate General in Sydney this morning to discuss the incident.

Mr Rudd, a new Weibo user, told one of his online followers, writing in Chinese, that he “will try to approach the police and department of education"on behalf of the victims.

This website has sought comment from Mr Rudd's office.

One Sydney-based international student said: "Australia is known for its tolerance and multi-culturalism. Yet there is still a tiny minority who discriminate against the international students, especially the younger people."

"You can accept people with different sexual orientations. But why can't you accept people from different cultural backgrounds?"

Xuan also expressed his anger and disappointment at the lack of help from train staff and other passengers.

“Though there were no police on the train, there were many other people and train staff. It even stopped once at Wolli Creek, but nobody helped us!”

Peter Cai is The Age's Asian Affairs Reporter

Tuesday, April 24, 2012

Relationship blues

Yes, we know teen girls obsess about boys — but there are limits to how much of that our columnist can take, she discovers!

I UNEARTHED my Sex And The City (SATC) DVDs last week and have been watching the series from season one, an episode or two before bedtime or when I feel in need of a laugh (re-runs of The X-Files were really getting me down).

I started watching SATC in my 20s and at the time I could sort of relate to the women in the show – not to Carrie Bradshaw’s shoe addiction, but to the dating misadventures experienced by the character on her journey to finding a man to spend the rest of her life with.\

I’m 45 now and find that I no longer relate to Carrie, or any of the other characters. There is an episode at the start of the second season in which Miranda Hobbes, Carrie’s sensible lawyer friend, loses her temper because her friends only seem to talk about men. She says, “Why do four smart women have nothing to talk about but boyfriends? It’s Iike seventh grade with bank accounts. What about us? What we think, we feel, we know... Does it always have to be about them?”
My thoughts exactly and this is also why I remembered being less than charmed by the final season of SATC – because there they were, still obsessed about finding “The one” and not dying alone (yes, even Miranda).

I mean, there is nothing wrong with wanting to share your life with one special person, but I don’t like how the series and its characters behave as though that life would mean less without that person. Are they saying that, if, for whatever reason, you end up single, it means you are incomplete? That’s really not the message I want to pass on to my daughter.

The thing is, although SATC is a series for adults because of its very adult content, Candace Bushnell, the writer of the book Sex And The City (on which the telly show is based) now has a young adult book series called The Carrie Diaries and it’s also being turned into a TV series.

Now, I don’t know what Carrie Bradshaw was like when she was a teenager, but I’m willing to bet that she was even more flaky than her 30-something SATC self.

I have not read the books (there are two so far), but the synopses on Amazon.com describe Carrie as a small town girl, the eldest of three sisters who live with their widower dad (I wonder what happens to him and the younger sisters – fans of SATC don’t ever get to meet any of Carrie’s relatives. In fact, the four main characters all appear to be orphans).

In The Carrie Diaries (the first book in the series), Carrie is a high school senior with three close girlfriends, one of whom is a gay guy, and a tall, dark and handsome admirer called Sebastian Kydd who sounds like an adolescent Mr Big (who Carrie marries in the TV series).

According to the School Library Journal review featured on the book’s Amazon page, “Carrie keeps letting boys run rampant over her”, which sounds very like the SATC Carrie we all know and long to smack because, really, why does a woman who supposedly attended the prestigious Ivy League Brown University (so it is revealed in The Carrie Diaries) behave like she was dropped repeatedly on her head as an infant and then force-fed crack until puberty?

You can excuse such idiocy (allowing men to treat you like dirt) in a teenager, but not in an adult. Still, I don’t think I’ll get myself copies of The Carrie Diaries and Summer And The City (the second book in the series). I know that teenage girls spend a lot of time obsessing about boys and relationships, and it’s natural and all that, but I think I’d rather read YA books with heroines who, while they might think a lot about boys, don’t behave like utter morons.

In fact, I’m a little tired of reading YA books in which relationships and sex are central to the plot.

I don’t mind one book of that sort for every half a dozen or so I read, but I think I’m due for a period of total abstinence from ink-and-paper sex and boy-related angst.

Everything in moderation, right? I can laugh at Bella Swan’s Edward-addiction in the Twilight Saga and I wouldn’t object to any young woman I care about reading the books, but I also want them to read books about teenagers who have more than sex and the opposite sex on the brain; who have so many interesting things to consider, places to go to, people to see that sex is just a tiny distraction, an amusing diversion, not an all-consuming passion. A tall order? Look out for the list on The Places You Will Go page on Facebook and post your recommendations too.

In the meantime, Happy Reading!

Tots to Teens By DAPHNE LEE-

> Daphne Lee reads to wonder and wander, be amazed and amused, horrified and heartened and inspired and comforted. She wishes more people will try it too. Send e-mails to star2@thestar.com.my and check out her blog at daphne.blogs.com/books.

To teach or to manage?


The Education Ministry should come up with guidelines that strictly define the role of teachers who are assigned to carry out administrative tasks and those who teach.

HAVE teachers not enough to teach that they are crying out to be “allowed to teach”? Or, have teachers been so drawn away from their teaching duty that they are pleading hard to “get (back) to teach”? Sadly, it is the latter that is of concern.

Teachers lament that they are not able to concentrate on their teaching because too many non-teaching activities and responsibilities are thrust upon them. There are the numerous analyses to do, reports to write, data to enter online, meetings, functions, seminars and workshops to attend. They also complain that they have co-curricular activities and games to manage and students to counsel.

Granted that some of these activities do have educational value that may indirectly contribute to classroom teaching effectiveness, teachers are not happy at the seemingly uncoordinated and inordinate manner by which they are called upon to be involved.

The contention is that much of the “paper work” teachers are required to do serve only the purposes of officials higher up. Teachers do not see any benefits to their charges at all.

With all these distractions, the committed teachers are worried sick that they may labour in vain in their classroom teaching; or they may themselves be burnt out. Others may already have thrown in the towel.

On the other hand, the less-than-responsible ones are enjoying the “outings” and “deviations” and unashamedly claiming that teaching is after all an “easy” life.

For the newly recruited teachers, this is indeed a confusing scenario!

There is indeed a case for the Ministry and education authorities to better coordinate and reassess the true needs of the paper work given to schools and expecting their feedback to be uploaded usually within short notice.

On the other hand, teachers must also recognise that some extracurricular activities are essential and therefore rightly become part of their duties.

Yet, with consent, approval and support from the authorities higher up, schools can do better. Here are my thoughts and suggestions.

A normal secondary day school with a student population of around 2,000 and running two sessions will have a principal, three senior assistants, an afternoon supervisor, four heads of academic departments, five student counsellors and a teaching staff of about 120.

This means that the school has 14 administrator-teachers, that is 12% of the staff.

Premier and other schools of acclaim may even have more academic and administrative staff. Smaller schools need no afternoon supervisors, have a proportionate number of counsellors whilst other positions are all intact.

These school administrators are called administrator-teachers because besides administering and managing their respective “office”, they are required to also teach some (10 to 14) periods a week. This may seem minimal as compared to a normal teacher’s load of 24 to 28 periods.

But, consider the minds of these administrator-teachers. Their first concern must be that they administer well the “office” they have been promoted and assigned to. They must also realise that what they do and decide now affect more than their own classes. They are helping to administer the whole school.

Their teaching periods may average two per day. But the timetable could be such that it is one period in the early half and the other period in the latter half of the day. Being conscientious and committed, they are teachers who want to perform well in their given tasks.

So, it is not just about going into classes for 40 minutes per period. There must also be necessary preparations to ensure that each lesson is enriching and benefiting to their charges.

Usually, they are torn between the demands of their administrative offices and the teaching needs of their classes. More often than not, our school structures and expectations being such, their administrative duties take precedence.

To accommodate, the more experienced administrator-teachers opt to teach “less important” subjects and classes.

This has resulted in their teaching becoming, much to their own chagrin, less than exemplary to their colleagues. Worse, there are some teachers who use the situation to justify their own lackadaisical demeanour.

This sad scenario begets the question: Why not allow administrator-teachers to be full-time administrators? They can then focus on the administrative tasks, take over the paper work now being assigned to teachers, “represent” teachers in many out-of-school activities and most importantly reduce the burden from teachers who are not “teaching-centric”.

After all, these administrator-teachers have to prove their administrative prowess rather than teaching for their next career move.

And, may I point out that former teachers who have taken on administrative positions in the ministry or the various education departments are not required to teach at all?

So why should teachers carrying out adminstrative work be expected to teach even if its just a few periods a week?

We really need a transformational change here. Would the Education Ministry allow schools to be administered by full-time administrators who were teachers before?

By LIONG KAM CHONG

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Who owns the South China Sea islets in the eyes of the world?



Hilary Clinton, US Secretary of State, made a very important statement on South China Sea area.


She stated on July 23, 2010 at the ASEAN meeting in Hanoi: "Legitimate claims to maritime space in the South China Sea should be derived SOLELY from legitimate claims to land features." Translation: Why China has claim over some islands/islets so far away from its homeland? Although Mrs. Clinton is a lawyer, she is wrong… based on international convention. There are many other important key considerations (historic claim, administration, etc). If “distance” is the ONLY measure of sovereignty, then US needs to give up Guam; UK needs to give up Falkland Island (to Argentina). And, many islets in the world need to find new owners.

Many people, including many journalists, in the world do not realize that historically, China’s claim on South China Sea islands started in the Ming Dynasty (1368), followed by Qing Dynasty (1644), followed by Republic of China (1911). Some people argue that it started even before Ming Dynasty. The current Beijing government just inherited the national map from Republic of China (in 1949). So this old claim started some 700 years ago and way before USA was born.

I hope people can live in peace as we become more civilized… in cooperation and prosperity. So it is a good thing the countries are proceeding to clearly settle on a “new” national boundary/interests arrangement (ownership, benefit sharing, etc) that the neighboring countries can accept… with or without USA help. In my view, the faster the better… so less feeling and fishermen will get hurt.

I understand, as the sole global power, USA has the responsibility to maintain peace and order where it concerns our interests. But we need to be an “honest broker” (to gain goodwill and other benefits), otherwise whatever we do is not sustainable. By starting the discussion on the South China Sea islands with such a BADLY ADVISED statement, Secretary Clinton is SOWING THE SEED of another big problem for America and the Sino-American relationship. 

“The earliest discovery by the Chinese people of the Nansha Islands can be traced back to as early as the Han Dynasty. Yang Fu of the East Han Dynasty (23-220 A.D.) made reference to the Nansha Islands in his book entitled Yiwu Zhi (Records of Rarities) , which reads: "Zhanghai qitou, shui qian er duo cishi"("There are islets, sand cays, reefs and banks in the South China Sea, the water there is shallow and filled with magnetic rocks or stones"). Chinese people then called the South China Sea Zhanghai and all the islands, reefs, shoals and isles in the South China Sea, including the Nansha and Xisha Islands, Qitou.”

There had been NO dispute over the sovereignty rights of China to the South China Sea and the numerous islands in it, by any other countries, for all those periods.


But, when the Western colonialists started invading and squatting all over Asia in the last 300 years, taking advantage of the declining power of the Qing Dynasty, they intentionally carved out various regions of land and sea as their “protected territories”. Then they forced the Manchu Court to sign many bogus “treaties” in which they claimed the Western “sovereignty rights” over these Chinese territories!


http://en.wikipedia.org/wiki/B%E1%BA%A1ch_Long_V%C4%A9

http://en.wikipedia.org/wiki/Spratly_Islands


Excerpt from the above link:


“In 1933,
France reasserted its claims from 1887 to the Spratly and Paracel Islands on behalf of its then-colony Vietnam. It occupied a number of the Spratly Islands, including Itu Aba, built weather stations on two, and administered them as part of French Indochina. This occupation was protested by the Republic of China government because France admitted finding Chinese fishermen there when French war ships visited the nine islands. In 1935, the ROC government also announced a sovereignty claim on the Spratly Islands.”

On September 4th, 1958, the Government of the People’s Republic of China issued a declaration of the Chinese sea territories.


http://en.wikipedia.org/wiki/B%E1%BA%A1ch_Long_V%C4%A9


http://en.wikipedia.org/wiki/Spratly_Islands


Excerpt from the above link:


“In 1933,
France reasserted its claims from 1887 to the Spratly and Paracel Islands on behalf of its then-colony Vietnam. It occupied a number of the Spratly Islands, including Itu Aba, built weather stations on two, and administered them as part of French Indochina. This occupation was protested by the Republic of China government because France admitted finding Chinese fishermen there when French war ships visited the nine islands. In 1935, the ROC government also announced a sovereignty claim on the Spratly Islands.”

On September 4th, 1958, the Government of the People’s Republic of China issued a declaration of the Chinese sea territories.


http://news3.xinhuanet.com/ziliao/20...ent_705061.htm


Excerpt from the above link (that are translated to English):


“(1) This width of the territorial sea of the
People's Republic of China is twelve national miles. This provision applies to all Territories of the People's Republic of China, including the mainland China and offshore islands, Taiwan (separated from the mainland and offshore islands by high seas) and its surrounding islands, the Penghu Archipelago, the Dongsha Islands, the Xisha islands (Paracells), the Zhongsha Islands, the Nansha Islands (Spratlys) and other islands belonging to China.”

(The Declaration by PRC, as clear from the above excerpt, specifically spells out the Xisha and Nansha islands, among other islands and sea boundaries.)


On September 14, 1958, ONLY 10 DAYS LATER, Vietnam Prime Minister at the time, Pham Van Dong, sent a cable to the Chinese Prime Minister Zhou Enlai, on behalf of the Vietnam government, expressing complete acknowledgment and support for China’s claims.


http://conghambannuoc.tripod.com/


Excerpt from the above link (that are translated to English):


“The Government of the Democratic Republic of Vietnam acknowledges and supports the Declaration on September 4th, 1958 by the Government of the People’s Republic of China (PRC), on the PRC’s decision concerning China’s sea territories.”


The International community has been overwhelmingly supporting China’s legitimate and inviolable sovereign on the sea territories claimed by China.


http://www.southchinasea.org/docs/In...20the%20Na.htm


“2. The International Civil Aviation Organization held its first conference on Asia-Pacific regional aviation in Manila of the Philippines on 27 October 1955. Sixteen countries or regions were represented at the conference, including South Viet Nam and the Taiwan authorities, apart from Australia, Canada, Chile, Dominica, Japan, the Laos, the Republic of Korea, the Philippines, Thailand, the United Kingdom, the United States, New Zealand and France. The Chief Representative of the Philippines served as Chairman of the conference and the Chief Representative of France its first Vice Chairman. It was agreed at the conference that the Dongsha, Xisha and Nansha Islands on the South China Sea were located at the communication hub of the Pacific and therefore the meteorological reports of these islands were vital to world civil aviation service. In this context, the conference adopted Resolution No. 24, asking China's Taiwan authorities to improve meteorological observation on the Nansha Islands, four times a day. When this resolution was put for voting, all the representatives, including those of the Philippines and the South Viet Nam, were for it. No representative at the conference made any objection to or reservation about it.”


It is evident from all above historic records, international treaties, and acknowledgment by ALL regional neighbor-countries, that China has the INDISPUTABLE lawful and legitimate sovereignty over the South China Sea and all the offshore islands on it.


US won't take sides in South China Sea dispute

Updated: 2012-05-02 12:24 By Zhao Shengnan (China Daily)

The United States said on Monday that it would not take sides in the Huangyan Island standoff between China and the Philippines in the South China Sea and reiterated support for a diplomatic resolution to the territorial dispute.

Washington does not take sides on competing sovereignty claims there, but has a national interest in maintaining freedom of navigation as well as peace and stability, US Secretary of State Hillary Clinton said, after meeting top diplomatic and defense officials from the Philippines.

Philippine Foreign Secretary Alberto del Rosario and Defense Secretary Voltaire Gazmin attended the 2+2 dialogue with their US counterparts, Clinton and Leon Panetta, in Washington.

"The United States supports a collaborative diplomatic process by all those involved for resolving the various disputes that they encounter," Clinton said. "We oppose the threat or use of force by any party to advance its claims."

Gazmin alluded to tension with China over islands in the South China Sea as he called for the need to "intensify our mutual trust to uphold maritime security and the freedom of navigation".

"We should be able to work together to build a minimum, credible defense posture for the Philippines, especially in upholding maritime security," Gazmin said.

The Philippines and China have been embroiled in the Huangyan Island dispute, with both nations stationing vessels there for nearly three weeks to assert their sovereignty.

China on Monday highlighted remarks made by the Philippine president about de-escalating the tension over the island, urging the Philippines to "match its words with deeds" and return to the proper pathway of diplomatic solutions.

Speaking of the tension, Philippine President Benigno Simeon Cojuangco Aquino III said he had issued instructions to his military, telling them not to intensify the issue.

Chinese Foreign Ministry spokesman Liu Weimin stressed that there is no change in China's stance of using diplomatic channels to peacefully resolve the issue, which was triggered when a Philippine warship harassed Chinese fishermen and raised concerns over China's sovereignty of the island.

The Philippine officials also stressed diplomacy when asked what aid they had requested from Washington, saying that Manila sought to bring the South China Sea issue to international legal bodies.

Clinton reaffirmed the US commitment to the 60-year-old Mutual Defense Treaty with the Philippines, calling the Philippines a country "at the heart" of the new US strategy toward the Asia-Pacific.

Washington would help improve the Philippines' "maritime presence and capabilities" with the transfer of a second high-endurance (coast guard) cutter this year, Panetta said.

The US emphasis on neutrality and a diplomatic resolution would encourage Manila to be more restrained on the Huangyan Island issue, said Fan Jishe, a US studies expert at the Chinese Academy of Social Sciences.

"Washington doesn't want territorial disputes between its Asian allies and China to be obstacles to China-US relations," he said.

Xinhua and Reuters contributed to this story.

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