21 Japan's Opposition party says it may cease refueling U.S. and NATO warships in the Indian Ocean

(1) New pact puts growing U.S.-India military ties under spotlight
(2) US committed to completing all steps of N-deal: Hillary
(3) India: homosexuality now legal but adultery a crime
(4) China's stock market tops Japan by value
(5) Trade frictions mount between US and China
(6) Japan's Opposition party says it may cease refueling U.S. and NATO warships in the Indian Ocean

(1) New pact puts growing U.S.-India military ties under spotlight

http://news.xinhuanet.com/english/2009-07/21/content_11741523.htm

www.chinaview.cn 2009-07-21 05:56:29

By Xinhua Writer Yang Qingchuan

WASHINGTON, July 20 (Xinhua) -- Monday's signing of a new U.S.-India defense pact in New Deli is hailed here by some as one concrete achievement of U.S. Secretary of State Hillary Clinton's trip to India.

The Christian Science Monitor called it a "tangible accomplishment."

Meanwhile, the deal once again put the growing Washington-New Deli defense relationship under spotlight, observers said.

The agreement, inked by Clinton and Indian Minister of External Affairs S. M. Krishna, will set terms for U.S. officials to monitor India's weapons usage and allow the US to sell sophisticated military technology to India, including fighter jets.

Under the terms of the deal, the U.S. would be allowed to conduct "end-use monitoring," meaning it would conduct regular assessments of India's military policies to verify that weapons systems are being used for their intended purposes.

Such an agreement is required by U.S. law before American companies can legally sell weapons systems to any foreign nation.

In other words, it will turn on the greenlight for U.S. defense giants such as Lockheed Martin and Boeing, to sell advanced and sophisticated weaponry to India.

"The agreement will boost India's ability to defend itself through the acquisition of U.S. defense equipment while promoting American high tech exports," the U.S. State Department said of the deal in a statement.

Clinton also signed agreements with India on science, technology, space and nuclear sites.

STRATEGIC COOPERATION

During Clinton's visit, the U.S. and Indian governments set the tone for a Strategic Dialogue that will focus on five principal pillars.

According to U.S. officials, the first and foremost pillar is the strategic cooperation, which includes military, nonproliferation and counterterrorism cooperation.

In fact, since the end of Cold War, the U.S.- India defense ties have been growing continuously, becoming a prominent feature of in the development of two-way relations.

During the Cold-war years, the United States formed a military alliance with Pakistan, India's rival in the region, while India received lots of military assistance from then Soviet Union, top U.S. enemy at the time.

But the United States soon found a new interest in developing military ties with India once the Cold War ended.

In 1995, then U.S. Secretary of Defense William Perry visited India and signed a pact with India to start defense cooperation.

However, India's nuclear tests in 1998 angered the Clinton administration, who imposed sanctions on New Deli.

But that is only a very brief episode and in 2000 then U.S. President Bill Clinton paid a "historical visit" to India and formally announced the U.S.-India partnership. The bilateral military ties not only recovered after that, but also flourished to a higher level.

The Bush administration further elevated the importance of the U.S.-India ties in strategic and security context, regarding India as an emerging power with "global status."

When George W. Bush announced his new missile defense plan in May 2001, many in the international community opposed it.

However, the Indian government expressed its support for the plan.

After 9/11 terror attacks, India actively supported Bush's war-on-terror and offered military cooperation.

NEW ERA OF MILITARY TIES

More importantly, in July 2005, the two countries decided to upgrade their relationship to "global partnership," and thus ushered in a new era of bilateral military cooperation.

The recent years have witnessed frequent exchanges of high-level military leaders between Washington and New Deli.

Since 2007, U.S. Secretary of Defense Robert Gates, Chairman of the Joint Chiefs of Staff Michael Mullen and other top U.S. generals paid respective visits to New Deli. The two-way military cooperation has been institutionalized and various levels of dialogue mechanisms have been set up.

The two militaries signed a defense cooperation framework in 2005 and the talks for global logistics cooperation are underway.

Joint exercises between the two militaries have grown in scale and frequency.

U.S. arms sale to India has been increasing steadily with more and more advanced weaponry shipped to New Deli, including F-16 and F-18 fighter jets, a Austin-class amphibious transport ship and C-130 cargo planes.

Most recently, the Obama administration in May 2009 approved the sale to India of 8 P-8I maritime patrol aircraft worth 2.1 billion U.S. dollars, the largest U.S. arms transfer to India to date.

MULTIPLE PURPOSES

For policymakers in Washington, closer military relationship with India will serve multiple purposes.

Foremost, Washington regards India as a vital balancing force in Asia, where several emerging powers exist.

Zhao Qinghai, a Chinese international affairs researcher, pointed out that there is a military meaning under Washington's pledge to "help India to become a 21st century world power."

Some U.S. officials have discussed about an idea of an Asian version of NATO, a military alliance among the United States, India, Japan and Australia.

Secondly, overstretched by two wars, the United States obviously hopes to find a new partner like India to share some of its burden across the globe.

Thirdly, the U.S. defense industry could benefit from growing U.S. arms sale to India, which has been vigorously increasing defense procurement.

Lockheed Martin Corp and Boeing Co. are competing for India's plan to buy 126 multi-role fighters, which would be one of the largest arms deals in the world. Clinton's trip to India will bring home some good news for them.

Evan A. Feigenbaum, an expert at Council of Foreign Relations, said explicitly that "India is among the largest potential U.S. defense customers."

However, as a growing power, India is proud of its history and culture, and has its own aspirations and visions, which may not all fit in with U.S. strategic calculations.

India's nonalignment and independent foreign policy is unlikely to change.

Also, India's traditional relations with Russia and other key regional players may require a balance when dealing with the United States and other countries at the same time.
Editor: Mu Xuequan

(2) US committed to completing all steps of N-deal: Hillary

2009-07-20 22:25:38

http://publication.samachar.com/topstorytopmast.php?sify_url=http://sify.com/news/fullstory.php?a=jhuwzCgghci&title=US_committed_to_completing_all_steps_of_N_deal_Hillary

New Delhi: India and the United States Monday reaffirmed their commitment to the bilateral civil nuclear deal, with India providing two sites for nuclear parks to be set up by American companies.

Prime Minister Manmohan Singh was also invited to visit the US in November.

US Secretary of State Hillary Clinton conveyed President Barack Obama's invitation to Prime Minister Manmohan Singh to visit the US. "As a sign of the importance of the relationship to the United States, I was pleased to extend an invitation to Prime Minister Singh from President Obama who invited him on Nov 24 for the first state visit of our new administration," Clinton said during a press conference here.

India, US sign 3 accords

On the penultimate day of her five-day visit to India, Clinton met with her Indian counterpart, External Affairs Minister S.M. Krishna for talks in the evening in Hyderabad House, after which they jointly addressed the press.

Clinton said that she "affirmed the Obama administration's strong commitment to completing all the remaining elements of our civil nuclear deal".

The statement would certainly clear India's apprehension that the statement by the G-8 in Italy that enrichment and nuclear reprocessing technology should not be passed on to non-signatories of the nuclear non-proliferation treaty, would pose an obstacle in the implementation of the civil nuclear deal.

"We have just completed a civil nuclear deal. If it done through proper channels and safeguarded, then it is appropriate," she asserted.

Clinton also said that Prime Minister Manmohan Singh had told her that sites for two nuclear parks by American companies have been "approved by the government".

"These parks will advance the aims of the US India civil nuclear agreement facilitating billions of dollars in US reactor exports and create jobs in both countries, as well as generate much needed energy for the Indian people," she said.

The US secretary hoped that India will soon implement a civil liability legislation to "enable our US companies to seize these important opportunities".

Earlier, US and India reached three agreements to help pave the way for increased parntership in defence, space and science and technology.

The agreements include one for end-user monitoring, which Clinton, said would lead to "greater defence cooperation". Besides, a technology safeguards agreement to help commercial partnerships in space and a science and technology deal were also finalised.

(3) India: homosexuality now legal but adultery a crime

SC refuses to stay gay sex verdict

2009-07-20 14:12:22

http://sify.com/news/fullstory.php?a=jhuomwechha&title=SC_refuses_to_stay_gay_sex_verdict

New Delhi: Maintaining that the recent Delhi High Court verdict decriminalising homosexuality does not permit incestuous relations or adultery, the Supreme Court on Monday said it will wait for the central government's formal stand on the issue before forming its opinion.

A bench of Chief Justice K G Balakrishnan and Justice P Sathashivam made the observation while hearing a bunch of petition opposing and supporting the high court judgement.

SC to hear plea against legalizing homosexuality

The Delhi High Court on July 2 decriminalised sex between two consenting adults of the same gender. Defined as unnatural sex under section 377 of the Indian Penal Code, 1860, homosexuality was earlier punishable with imprisonment up to life.

(4) China's stock market tops Japan by value

http://www.chinadaily.com.cn/bizchina/2009-07/20/content_8447558.htm

(China Daily/Agencies)
Updated: 2009-07-20 07:47

China overtook Japan as the world's second-largest stock market by value for the first time in 18 months.

This month's change was attributed to government stimulus spending and record bank lending that boosted share prices this year.

The Shanghai Composite Index rose 1.4 percent this month, sending the value of China's domestic stock market to $3.21 trillion, compared with Japan's $3.20 trillion, according to data compiled by Bloomberg.

The Shanghai index has gained 75 percent this year, the best-performing major market, against a 7 percent advance in the Nikkei 225 Stock Average.

The US has the biggest equities market worth $10.8 trillion.

"China is just entering its stride and is still very much in a growth phase, while Japan is already a developed economy," said Daphne Roth, Singapore-based head of Asian equity research at ABN Amro Private Banking, which oversees about $14 billion.

China last surpassed Japan in stock market capitalization from Jan 4 to Jan 24, 2008, data compiled by Bloomberg show.

The Shanghai Composite tripled in the two years leading to its record on Oct 16, 2007, before tumbling 72 percent to its trough the following November.

A government-led 4 trillion yuan stimulus package and record bank lending have shielded the Chinese economy against a plunge in exports.

Foreign-exchange reserves topped $2 trillion for the first time, while its money supply rose a record 28.5 percent in June, the central bank said on July 15.

The economy expanded 7.9 percent in the second quarter, the statistics bureau said in Beijing, more than the 7.8 percent median estimate from 20 economists surveyed by Bloomberg News.

New loans rose fivefold in June from a year earlier to 1.53 trillion yuan, increasing concern that attempts to revive the world's third-largest economy will lead to bad debts and asset bubbles.

Rapid credit growth poses risks for lenders and the financial system, Wang Huaqing, the disciplinary secretary of the China Banking Regulatory Commission, said on July 7.

BNP Paribas Securities (Asia) Ltd last month cut its rating on China to "neutral" from "overweight", citing valuations.

Stocks on the benchmark index are trading at 33.2 times earnings. That's almost triple the 12.9 multiple on Nov 4, when the measure dropped to its lowest since the financial crisis.

Earnings per share declined 7 percent last year and will probably remain "flat" this year, the brokerage said.

Some Chinese shares have soared by "1,000 percent from the bottom, so they're pricing in a very strong rebound in earnings", he said.

In Japan, nagging deflation and an aging population have sapped strength from what was once the world's largest market by capitalization.

During the 1990s, Japan spent 135 trillion yen on 10 economic stimulus plans and lowered interest rates to zero, none of which succeeded in promoting sustainable growth.

Japan's economy shrank at a 14.2 percent annual rate in the first quarter, the most since data began in 1955.

The country's gross domestic output will shrink 3.4 percent in the year ending March 2010, the central bank predicted.

The contraction coincided with a drop to a more-than 25-year low by the Topix index.

"Japan has two main problems. The enormous public debt handicaps the government's ability to spend additional money to boost the economy, and we are too reliant on exports," said Takashi Kamiya, chief economist at T&D Asset Management Co in Tokyo, which helps oversee some $16 billion.

Chinese companies account for four of the 10 biggest companies when measured by market value, according to Bloomberg data.

Toyota Motor Corp is the top-ranked Japanese company, at 25th, worth about one-third the capitalization of PetroChina Co, ranked No 1.

(5) Trade frictions mount between US and China

http://www.chinadaily.com.cn/bizchina/2009-07/20/content_8448067.htm

By Jiang Wei (China Daily)

Updated: 2009-07-20 07:51

On June 23, the Obama administration filed a complaint with the World Trade Organization (WTO) against China, alleging that China is restricting the exports of nine raw materials important to US manufacturing.

It is the just one example of new trade frictions developing between China and the United States.

The US Department of Commerce on June 26 opened a probe into whether China has dumped or subsidized wire decking sold in the US market.

The probe followed the initiation of similar investigations into wire strand and steel grating products earlier in June.

Experts said rising trade protectionism tends to accompany economic recessions.

Following the three US anti-dumping and countervailing investigations into imports of Chinese steel products in June, China's Ministry of Commerce posted a strongly worded statement on its website expressing its concerns about what it believes is protectionism.

"China is shocked at the frequency of the cases and the strength of the targeting. Chinese industry is extremely dissatisfied and the government deeply concerned," the Ministry of Commerce statement read.

"These actions are sending the wrong signals about trade protectionism within the United States to the international community," the statement read.

US authorities have said the goal is simply to protect the rights of domestic industries.

In another development, China last month rejected US and European charges that its restrictions on raw materials exports violate international trade rules, saying that its policies were in keeping with WTO regulations.

The European Union and the United States said they were taking a complaint to the World Trade Organization over China's export curbs on some industrial raw materials used in steel, cars, microchips, planes and other products.

By arguing that the export taxes and quotas keep a lid on Chinese firms' costs, the WTO complaint takes the view that they are essentially a subsidy and distort competition for chemical, steel and non-ferrous metal producers outside China.

"The main objective of China's relevant export policies is to protect the environment and natural resources. China believes the policies in question are in keeping with WTO rules," the Ministry of Commerce press office said in a mildly-worded response.

Despite such frictions, Sino-US trade still represents one of the world's more important trade relationships.

In the first half of this year, the United States remained China's second-largest trade partner, with bilateral trade volume totaling $132.09 billion -- down 16.6 percent from a year ago.

During the same period, China's trade with major trade partners saw a bigger decline, including a 20.9 percent drop in trade with the European Union, a 23.1 percent decline with Japan and 23.8 percent fall with the Association of Southeast Asian Nations.

The trade imbalance between the United States and China is not sustainable, and the two countries have a joint responsibility to reduce greenhouse gas emissions, US Commerce Secretary Gary Locke said last Wednesday in Beijing.

"There do exist some issues in our bilateral trade relations, including cooperation on high-tech products," Chinese commerce ministry spokesman Yao Jian told a press conference last Wednesday in Beijing.

China's big surplus in its trade with the United States has become a global concern, he said.

"Of course, it's a separate issue as to how to interpret the trade surplus. In a globalized world today, trade surplus does not necessarily mean trade benefits," Yao said, pointing out that China mainly exports labor-intensive products.

Assistant Minister of Commerce Wang Chao said "Made in China" products have become more important to US consumers, adding that the massive Chinese market also is translating into more profits for US enterprises.

He cited a report from the US Chamber of Commerce on the business environment in China.

That report stated that 74 percent of US enterprises investing in China are making a profit in China, and that 91 percent of those businesses plan to expand in China.

"US trade and investment in China also helps China upgrade its industries," Wang said.

He estimated bilateral trade between the two countries will exceed $500 billion in the next five years, and that relations will be more in balance within that time period.

As for trade frictions, Wang said China is not pursuing a trade surplus and is not taking measures to increase imports from the United States.

Wang did call on the United States to remove restrictions on exports to China to narrow the trade gap between the two countries.

Zhang Lijuan, a professor at the School of Economics at Shandong University, said trade relations likely will be a major topic during the first round of the Sino-US Strategic and Economic Dialogue scheduled later this month in Washington, DC.

"Free trade is no longer a keynote for the Obama administration, and instead, 'Buy American' is a focus of US stimulus bills," Zhang said.

"The 'free but fair' trade policy initiative can be interpreted as a new type of trade protectionism," she said.

Zhang said China has urged the United States to lift its ban on technology exports to partially offset its trade deficit with China, although the US-China trade imbalance won't be at the top of the agenda.

Inevitably, trade promotion and expansion will drive the direction of bilateral trade talks, she said.

Zhang said trade-related issues likely will be discussed at greater length at the fall meeting of the high-level Joint Commission on Commerce and Trade (JCCT).

"The two sides will exchange views on trade policies and attempt to intensify cooperation on global economic and financial issues," Zhang said.

"Trade-related issues such as intellectual property rights and standards on the environment, labor, and product safety will be addressed at both meetings," she said.

(6) Japan's Opposition party says it may cease refueling U.S. and NATO warships in the Indian Ocean

http://www.stripes.com/article.asp?section=104&article=63801

Japanese party may alter policy toward U.S.

By Erik Slavin and Hana Kusumoto, Stars and Stripes

Pacific edition, Tuesday, July 21, 2009

http://www.stripes.com/article.asp?section=104&article=63801

Keiichiro Asao, the Democratic Party of Japan’s presumptive choice for defense minister if the party were to take control of the Japanese government, discusses the party’s vision on security issues at his Tokyo office Wednesday.

TOKYO — The Democratic Party of Japan could end refueling for U.S. ships supporting the war in Afghanistan but would consider sending ground troops there under certain conditions, the party’s presumptive choice for defense minister told Stars and Stripes.

Upper house Diet member Keiichiro Asao said in an interview last week that he also would scrutinize spending on moving Okinawa-based Marines to Guam if his party triumphs over the ruling Liberal Democratic Party in August elections — a prospect that Japanese opinion polls indicate is likely to happen.

Moreover, Asao would look to relocate Okinawa’s Marine Corps Air Station Futenma somewhere other than Camp Schwab, Okinawa, where planned construction of a new airstrip is unpopular among residents.

Of those policy changes, action on Afghanistan would take priority, he said.

The Japan Maritime Self-Defense Force has provided 4.9 million gallons of fuel to U.S. and NATO ships from January 2008 through April 30, according to the most recent Defense Ministry figures.

The DPJ has opposed refueling U.S. and NATO ships in the Indian Ocean throughout two legislative sessions.

Some Japanese newspapers have quoted unnamed DPJ officials recently who say the party may reverse course and allow the refueling mission to preserve relations with the United States.

However, Asao said, demand for refueling is decreasing, and Japanese ships would be more useful in combating piracy.

He also said he believes that Japan’s most appropriate role in Afghanistan would be as a peace broker between the Afghan government and more moderate elements of the Taliban.

“The strength we have is that we have no bad track record in Afghanistan,” Asao said. “We haven’t sent any troops to Afghanistan yet; therefore, there’s no collateral damage caused by our self-defense forces.” ...
http://mdn.mainichi.jp/mdnnews/news/20090718p2a00m0na014000c.html

Okada says DPJ will release documents on secret Japan-U.S. pacts if voted into power

Democratic Party of Japan (DPJ) Secretary-General Katsuya Okada said the party will release to the public documents on secret Japan-U.S. agreements, including one to allow U.S. vessels carrying nuclear weapons to call at Japanese ports, if it takes over the reins of government because information disclosure is the fundamental principle of democracy.

He attributed the government's denial of the existence of such agreements to the lack of a transfer of power for many years. ...