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CHINESE MASTER CELLPHONE SAFETY KING OF FUNK

REDISCOVERING SEVERAL TRICKS THE DEFINING
HIS RARE TROVE TO REDUCE YOUR RISK DRUMMER
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FRIDAY, APRIL 1, 2011 THE GLOBAL EDITION OF THE NEW YORK TIMES GLOBAL.NYTIMES.COM

2nd defection jolts

New stage in Ivory Coast
president closed in. In a sign of Mr. Gbagbo’s steady loss of power, his army chief of staff sought refuge at the South African ambassador’s residence in the city. PAGE 5
Qaddafi’s regime
TRIPOLI, LIBYA
U.S. looking to endgame
as top official departs
after foreign minister
BY DAVID KIRKPATRICK
AND ALAN COWELL
The capital of Libya was alive with ru-
mors of defections Thursday as British
officials in London interrogated the most
important defector yet, Foreign Minis-
ter Moussa Koussa, and insisted that
they had made no promise of immunity
to encourage him to abandon the gov-
ernment of Col. Muammar el-Qadaffi.
In another sign that the cracks in the
Libyan government may be widening, a
second top Libyan official, Ali Abdus-
salam el-Treki, defected to Egypt. In de-
cades of service, Mr. Treki had served
as both foreign minister and United Na-
tions representative.
Opponents of Colonel Gadhafi were
knocked back by government troops for
a third straight day Thursday but took
heart from the defections.
‘‘We believe that the regime is crum-
bling from within,’’ the opposition
spokesman Mustafa Gheriani told The
Associated Press in Benghazi, the
rebels’ de facto capital.
Among the other rumored defectors
JEAN-PHILIPPE KSIAZEK/AGENCE FRANCE-PRESSE on Thursday were the prime minister,
Fighters loyal to the strongman Laurent Gbagbo patrolling Abidjan on Thursday as forces supporting the internationally recognized the speaker of Parliament and the oil
minister. None of those reports could be
verified.
In Washington, officials also were
looking to the endgame in Libya. De-
security adviser. Like the Qaddafi fam-
ily, his whereabouts were unknown
Thursday, but there were no credible re-
ports that he had fled.
Mr. Koussa was a confidant of Colonel
Qaddafi and was considered a pillar of
the Qaddafi government since the early
days of the 1969 revolution. He has been
listed by the prosecutor of the Interna-
tional Criminal Court among those who
‘‘commanded and had control’’ over
Libyan security forces suspected of
‘‘crimes against humanity.’’
Mr. Koussa flew into a noncommercial
British airfield at Farnborough, south-
west of London, aboard an executive jet
Wednesday and, according to a state-
ment released by the British authorit-
ies, said that he was resigning his post.
In a speech in London on Thursday,
Foreign Secretary William Hague said
Mr. Koussa, a former intelligence chief
in the Libyan regime, had fled ‘‘of his
own free will.’’
‘‘Moussa Koussa is not being offered
any immunity from British or interna-
tional justice,’’ Mr. Hague said. ‘‘He is
voluntarily talking to British officials, in-
cluding members of the British Embassy
in Tripoli now based in London, and our
ambassador, Richard Northern.’’
The prosecutor of the International
Criminal Court, Luis Moreno-Ocampo,
said March 3 that he would investigate
‘‘alleged crimes against humanity com-
mitted in Libya since 15 February, as
LIBYA, PAGE 4

Uncertain, Japan’s youth seek meaning

TOKYO will test a generation reared in affluence
and dismissed by its elders as full of
selfish materialists.
New generation tested April 1 is the traditional entrance day
as triple crises transform for classes of new employees, who as-
sume adult responsibilities and values
Yo Miura had expected to enter a local
bank in the Sendai area, counting on a
steady income and a modest amount of
prestige. But his starting date at the
bank has been put off indefinitely while
northeastern Japan struggles to re-
friends’ example and volunteer to help
people rebuild their homes. Never mind
that he has no experience as a car-
penter. Mr. Miura hopes that by fixing
broken walls and retiling roofs, he can
repair people’s lives and bring deeper
fense Secretary Robert M. Gates told a
congressional panel that he strongly op-
posed putting any U.S. forces in Libya.
Asked whether there would be Ameri-
can ‘‘boots on the ground’’ — that is,
uniformed members of the military —
Mr. Gates swiftly replied, ‘‘Not as long
as I’m in this job.’’
At the same time, Mr. Gates declined
to address reports that the Central In-
telligence Agency had sent clandestine MOISES SAMAN FOR NYT

nation and alter future
BY KEN BELSON
As hundreds of thousands of young
people begin their working lives on Fri-
day, they face a transformed Japan that
along with the new suits and crisp white
shirts that are the uniforms of corporate
Japan. But they face a landscape as un-
certain as any in their young lives, with
Japan’s economy hobbled and its nation-
al pride bruised by the triple disasters of
earthquake, tsunami and nuclear crisis.
build. ‘‘My life has completely
changed,’’ he said while sitting in the job
office at Sendai University. ‘‘Before, my
life was peaceful and predictable. Now,
I’m not sure what the future holds.’’
While he awaits word from his em-
ployer, Mr. Miura plans to follow his
meaning to his own.
JAPAN, PAGE 8
SCANT PROGRESS IN NUCLEAR CRISIS
Troublesomely high radiation readings
reinforced fears that the disaster in
Japan was far from ending. PAGE 8
operatives to Libya to gather intelli-
gence for military airstrikes and to con-
tact and vet the rebels.
Other than the sons of Colonel Qad-
dafi, the only other official as close to the
Libyan leader as Mr. Koussa is Adbdul-
lah Senussi, his brother-in-law and a top
Foreign Minister Moussa Koussa. British
officials were interrogating him Thursday.
REBELS WARNED ON KILLING OF CIVILIANS
NATO’s warning, and intense
consultations on just who is a civilian,
come as battle lines blur in Libya. PAGE 4

On occasion, amateur sports Egypt’s Islamic fundamentalists

spin a special kind of madness
BOSTON
BY CHRISTOPHER CLAREY
There is nothing in the world quite like
the N.C.A.A. men’s basketball tourna-
ment, which is rather surprising in a
world where good and, above all, lucra-
tive sports concepts tend to make bor-
ders irrelevant.
There has clearly been some crossov-
er. The term Final Four has now been
borrowed by European professional
basketball leagues, team handball tour-
naments and Italian volleyball competi-
tions in describing their decisive
phases.
The French, inclined to search for
IN THE ARENA
French substitutes for English phrases,
even use the term ‘‘le final four’’ in
news media reports and have been
known to write of ‘‘le March Madness’’
on occasion (even in April, when the
tournament actually ends). For now at
least, no Gallic usage of ‘‘the Sweet 16’’
or ‘‘the Big Dance’’ has been detected.
Though elite collegiate sports of the
nominally amateur sort practiced in the
United States are a big exception to the
global rule, the N.C.A.A. tournament is
not without company.
‘‘There are quite popular and simil-
ARENA, PAGE 11
embrace potential of democracy
NAHIA, EGYPT
BY NEIL MACFARQUHAR
Abboud al-Zomor — the former intelli-
gence officer who supplied the bullets
that killed President Anwar el-Sadat and
is Egypt’s most notorious newly released
prisoner — waxes enthusiastic about
ending the violent jihad he once led.
‘‘The ballot boxes will decide who will
win at the end of the day,’’ Mr. Zomor
said in an interview in his large family
compound in this hamlet on Cairo’s
western edge. ‘‘There is no longer any
ANDREA BRUCE FOR THE NEW YORK TIMES need for me to use violence against those
Abboud al-Zomor, shown in his family home near Cairo last month, and other fundamental- who gave us our freedom and allowed us
ists talk of founding political parties and forging alliances to maximize the religious vote. to be part of political life.’’
In its drive to create a perfect Islamic
state, his group, Gamaa Islamiya, or the
Islamic Group, and others like it were
once synonymous with some of the
bloodiest terrorist attacks in Egypt. But
they are now leaping aboard the democ-
racy bandwagon, alarming those who
worry that religious radicals are seek-
ing to put in place strict Islamic law
through ballots.
The public approval of the constitution-
al amendments on March 19 provided an
early example of Islamist political
muscle, a victory achieved in no small
part by framing the yes vote as a reli-
gious duty. But perhaps the most surpris-
ing aspect of the Islamist campaign was
EGYPT, PAGE 4

PAGE TWO BUSINESS ONLINE VIEWS

Infighting frays Afghan Taliban
The Afghan Taliban are showing signs
of increasing strain after a number of
killings, arrests and internal disputes
that have reached them even in their
haven in Pakistan, Afghan security
officials and Afghans with contacts in
the Taliban say. The insurgents have
Irish banks need ¤24 billion
The Irish government said Thursday
that four banks needed to raise an
additional ¤24 billion to cover problem
real estate loans, part of the results of a
long-awaited stress test on the
country’s failing financial institutions.
While largely expected, the total aid
Mercury comes into focus
The Mercury Messenger is to spend
at least a year in orbit. Its visit is the
last frontier of planetary exploration
for NASA for quite some time.
The first close-ups of Mercury.
global.nytimes.com/science
Roger Cohen
American exceptionalism has always
made President Obama uneasy. But
speed in ousting Muammar el-Qaddafi,
the goal from which Western leaders
cannot retreat, is essential. PAGE 7
Pakistan is also erupting
visit

been under pressure since U.S. forces
doubled their presence in southern
Afghanistan last year and greatly
increased the number of special forces
raids aimed at Taliban commanders.
WORLD NEWS
Tea Party’s corporate reach
A conglomerate in Indonesia finds
support as factions within the Tea Party
movement bear corporate messages
wrapped in populist themes. PAGE 5
Book on Gandhi upsets Indians
The book suggests that the father of
modern India was bisexual. But the
author, Joseph Lelyveld, denies that it
makes any such argument. PAGE 8
figure was still a jarring number. PAGE 14 President Obama’s policy is failing as
resentment over drone strikes and anti-
Data signal patchy E.U. revival U.S. propaganda by Islamic militants
The uneven nature of the European take their toll, Peter Charles Choharis
economic recovery was underlined and Shamshek Asad write. PAGE 6
Thursday by figures that showed higher
prices and weak consumption across the COMING THIS WEEKEND
euro zone. The Portuguese budget
situation worsened even as the picture in Battling the superbugs
France and Germany improved. PAGE 14 After the discovery of penicillin, the
first antibiotic, in 1928, the world
Subsidy setback for Boeing assumed it had the chemicals to beat
Boeing received at least $5.3 billion in bacteria. Now, though, the world’s drug
improper U.S. government subsidies to companies may be running out of road.
develop its 787 Dreamliner and other jet ‘‘You can’t win against evolution,’’ said
models, giving it an unfair advantage a scientist who spends his days
over Airbus, its European rival, the tracking the emergence of superbugs.
World Trade Organization confirmed in ‘‘All you can seek to do is to stay a jump
a report published Thursday. PAGE 15 NASA ahead.’’

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Victory123
2 | FRIDAY, APRIL 1, 2011
page two
The politics
of change on
the prairie
Chrystia
Freeland
WAY OF T H E WO R L D
CALGARY, ALBERTA Conventional wis-
dom has it that the Internet is dumbing
us down and making politics more par-
tisan. Sound bites are more effective
than substance. The punditocracy that
shapes these truisms is, needless to
say, pretty certain they apply most
powerfully to people in the provinces,
especially those with a history of vot-
ing for the right.
That is why the election of Naheed
Nenshi, a 39-year-old former business
school professor, as mayor of Calgary, is
a watershed event that should be of in-
terest far beyond Canada, where he has
already become a political superstar.
When Mr. Nenshi earned his upset
victory last October, the first flutter of
outside enthusiasm was around the
fact that an Ismaili Muslim son of
South Asian immigrants who came to
Canada from Tan-
A desire to be zania had been
chosen to lead the
involved in
capital of Canada’s
the real, phys- conservative heart-
ical life of the land.
city could be The next wave of
tapped by us- excitement was in-
ing cybertools. spired by his cam-
paign’s sophisticated
use of social media to
overturn Calgary’s old-boy political es-
tablishment.
The Twitter revolutions, which we
are now so familiar with thanks to the
oil states of North Africa, had first hit
the land of the blue-eyed sheiks thanks
to clever tactics like a comic YouTube
video of people struggling with the
mayor’s name, or providing simple on-
line tools for supporters to color their
Facebook pages Nenshi purple.
But when I spoke to Mr. Nenshi a few
days ago in the elegant 1911 sandstone
building that houses the mayor’s office,
he told me that outsiders were missing
the point. The real significance of his
victory, he said, was to prove that
voters care deeply about big ideas and
will elect the leaders who take the trou-
ble to engage them. This is true, Mr.
Nenshi insisted, even outside political
and media centers like New York, Lon-
don or Toronto.
‘‘We called it politics in full sen-
tences,’’ said Mr. Nenshi. He has curly,
slightly greying hair, and wears rectan-
gular black glasses and a slightly
rumpled black suit. He talks not just in
full sentences but in full paragraphs,
and has the energy and gregariousness
of a born politician. ‘‘We called it the
Better Ideas campaign.’’
Those ideas were genuinely serious
— and strongly against the current of
what many had assumed to be the cul-
tural propensities of Calgarians. Mr.
Nenshi is an evangelist of high-density
living and of public transit — at least
IN OUR PAGES ✴ 100, 75, 50 YEARS AGO
1911 J. O’Gorman Elected Senator
NEW YORK Justice James A. O’Gorman,
of the New York Supreme Court, was
elected United States Senator by the Leg-
islature tonight [March 31]. The selection
was made on the first ballot taken at the
night session, Justice O’Gorman receiv-
ing 112 votes. Negotiations for the settle-
ment of the Senatorship fight had been
going on all day. Mr. Charles Murphy ar-
rived in Albany early, accompanied by
Mr. Daniel Cohalan, intending to force
the name of Justice O’Gorman before the
caucus. When the caucus met it was an-
nounced the Justice O’Gorman was ac-
ceptable to the ‘‘insurgent’’ Democrats.
His nomination followed. The election of
Justice O’Gorman ends a deadlock which
had existed since the convening of the
Legislature, early in January. Mr. Wil-
liam F. Sheehan was the nominee of the
original Democrat caucus, but the ‘‘in-
surgents’’ refused to support him, and he
was unable to win a majority of votes in
the Legislature at any time.
1936 Hindenburg Departs
PA RI S The Hindenburg, the world’s
largest dirigible and the latest of Ger-
many’s long series of Zeppelins, headed
out over the Atlantic on its maiden flight
to South America last night [March 31],
after taking off from Friedrichshafen at
5:30 a.m. The airship carried forty pas-
sengers, a crew of forty, more than fifty
tons of fuel and five tons of cargo, includ-
ing an automobile. It is due in Brazil on
Saturday. Because French authorities
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Advertising Inquiries: +33 1 41 43 92 06; Fax +33 1 41 43 92 12 • Printer: Paris Offset Print, 30, rue Raspail, 93120 La Courneuve.
one member of his team doesn’t even
own a car.
These are revolutionary notions in
Calgary, a city that is spread across as
many acres as New York, but houses
just a tenth as many people. Calgarians
love their cars — that’s how more than
two-thirds of them get to work — and
they are bullish on the oil industry that
not only puts gas in their tanks but also
is the lifeblood of their economy.
Yet these same Calgarians embraced
a geeky, Harvard-educated former
McKinsey consultant, who keeps
magazines like IFR and The Banker in
his foyer and loves technocratic solu-
tions to urban problems like ‘‘spot in-
tensification’’ and containing sprawl by
charging developers more to build on
the outskirts of town.
Voters did so, Mr. Nenshi believes,
‘‘because we didn’t condescend to
people.’’ Calgary, he told me, ‘‘is a city
of ideas,’’ proudly citing as evidence
the sell-out crowd of 1,700 the author
Malcolm Gladwell drew on a recent
visit. (He has been topped only by the
singer Sarah McLachlan.)
‘‘Calgarians were really interested in
having a conversation about the future
of their city,’’ the mayor told me. But
the province of Alberta is the closest
Canada comes to a one-party state —
‘‘governments never change here’’ —
and until Mr. Nenshi and his pals came
along, no one had really bothered to
bring people in to that discussion.
This engagement with the community
is the second important lesson of Mr.
Nenshi’s win. Robert Putnam told us in
1995 that Americans had started to bowl
alone. And many of us worry that the
advances in technology in the sub-
sequent 15 years have served mostly to
alienate us further from our real-life
neighbors as we retreat ever deeper into
virtual communities of the like-minded.
But what Mr. Nenshi found in Cal-
gary was a passionate desire to be in-
volved in the real, physical life of the
city — and one which could be most ef-
fectively tapped by using cybertools.
What Mr. Nenshi did, he told me — and
remember the guy is a former business
school professor — was to adapt the
classic marketing and political adage
that you have to ‘‘go to people where
they live’’ to the Internet age.
‘‘One of the things we discussed is
that a lot of people live online,’’ Mr.
Nenshi said, including the 600,000 Cal-
garians, in a city of 1.3 million, who are
on Facebook. ‘‘Social media was the
tool that enabled our philosophy.’’
When he first moved back home to
Calgary after professional stints in
Toronto and New York, Mr. Nenshi
said, his East Coast friends were
baffled: ‘‘The New York people and the
Harvard people were like ‘Naheed,
why are you in the middle of the Cana-
dian prairies?’’’
But he thinks the ‘‘Four Seasons hotel
tribe’’ of globe-trotting superelites may
be missing the fact that they inhabit a
world that is rather provincial itself.
‘‘When I lived in Toronto and New
York — big, big cities — how come I
saw the same people all the time?’’ Mr.
Nenshi asked. ‘‘This so-called border-
less world has become more insular.
The number of times I hear from
people — ‘Oh, I ran into so and so on
the flight from J.F.K. to Dubai.’
‘‘I am very happy to let the Four Sea-
sons tribe do their work on global
prosperity,’’ Mr. Nenshi said. ‘‘I’ll do
my work on local prosperity.’’
Chrystia Freeland is global editor at
large at Reuters.
E-MAIL: pagetwo@iht.com
TOMORROW: Alan Cowell on Europe’s
gambles in Libya.
refused to grant the necessary permis-
sion to fly over French territory, the
Hindenburg followed the Rhine to the
Dutch border, crossed Holland and the
English Channel, skirted the southern
coast of England and headed out into the
Atlantic as thousands watched. Accord-
ing to official sources, there was nothing
political in the fact that French permis-
sion failed to reach the Zeppelin owners
in time for this flight. It was simply said
that a German request arrived too late
for the necessary study to be completed
before the hour for the start of the flight.
1961 Africa Cuts Off South Africa
N E W YO RK The 26-nation African group
agreed unanimously today [March 31] to
support Ghana’s call for a break in rela-
tions with South Africa until that nation
abandons its racist policies. A spokes-
man for the African group said it decided
in a private meeting to back a draft reso-
lution by Ghana which would call on all
UN member states to sever diplomatic
and trade relations with the Union gov-
ernment, halt all postal and telegraph
communications and close their ports
and airfields to South African ships and
planes. Ghana called for the world-wide
break with South Africa in a speech
Monday to the 99-nation Special Political
Committee debating the apartheid
policies of the Union government. Ire-
land yesterday opposed the imposition
of sanctions on South Africa as urged by
Ghana and others to force the Union
government to relax its racial policies.
Kojak Pass, the only route that connects the Afghan border town of Chaman with the southwestern Pakistani city of Quetta, where three Taliban commanders were killed in February.
Infighting frays Afghan Taliban
KABUL
Killings and other losses
unnerve insurgents
preparing to fight anew
BY CARLOTTA GALL
The Afghan Taliban are showing signs
of increasing strain after a number of
killings, arrests and internal disputes
that have reached them even in their
haven in Pakistan, Afghan security offi-
cials and Afghans with contacts in the
Taliban say.
The killings, coming just as the insur-
gents are mobilizing for the new fight-
ing season in Afghanistan, have un-
nerved many in the Taliban and have
spread a climate of paranoia and dis-
trust within the insurgent movement,
the Afghans said.
Three powerful Taliban commanders
were killed in February in the south-
western Pakistani city of Quetta, well
known to be the command center of the
Taliban leadership, according to an
Afghan businessman and a mujahedeen
commander from the region with links
to the Taliban. A fourth commander, a
former Taliban minister, was wounded
in the border town of Chaman in March.
There have also been several arrests
in Pakistan of senior Taliban command-
ers, including those from the provinces
of Zabul and Kabul, and of the shadow
governor of Herat, Afghan officials said.
Mullah Agha Muhammad, a brother of
Mullah Baradar, the former second in
command of the Taliban who was arres-
ted by Pakistan security forces over a
year ago to stop him negotiating with the
Afghan government, was also detained
briefly to send out the same warning,
said the chief of the Afghan border police
in Kandahar, Col. Abdul Razziq.
While the arrests have been conduct-
ed by Pakistan security forces, no one
seems to know for sure who is behind
the killings. Members of the Taliban at-
tribute them to American spies running
Pakistani and Afghan agents, in an ex-
tension of the U.S. campaigns that have
used night raids to track down and kill
scores of midlevel Taliban commanders
in Afghanistan and drone strikes to kill
militants with links to Al Qaeda in Paki-
stan’s tribal areas. Others, including Pa-
kistani and Afghan Parliament mem-
bers from the region, say that the
Pakistani intelligence agencies have
long used threats, arrests and killings to
control the Taliban and that they could
be doing so again to maintain their influ-
ence over the insurgents.
Afghan officials in Kabul denied any
involvement in attacks on the Taliban
inside Pakistan, as did U.S. and NATO
military officials. ‘‘We’ve heard of in-
fighting that reportedly has led to in-
ternal violence at several points in re-
cent months,’’ one senior U.S. military
official said of the Taliban, asking not to
be identified because of the sensitivity
of discussing events in Pakistan. Mili-
tary forces were not involved, he added.
Whatever the case, Taliban com-
manders and fighters, who used to be a
common sight in parts of Quetta, have
now gone underground and are not
moving around openly as before. Two
members of the Taliban, including a se-
nior official, declined to talk about the is-
sue of killings on the telephone, saying it
was too dangerous. Many will not an-
Afghan police officers in Zabul Province lining up for inspection by local government of-
ficials. Several Taliban commanders from Zabul have been arrested in Pakistan.
swer their phones at all.
The Taliban have been under stress
since U.S. forces doubled their presence
in southern Afghanistan last year and
greatly increased the number of special
forces raids aimed at Taliban command-
ers. Yet they still control a number of re-
mote districts, and in those areas the in-
surgents can still muster forces to storm
government positions, as demonstrated
this week by their capture of a district in
the eastern Afghan province of Nuristan.
While there is still some debate over
the insurgents’ overall strength,
Pakistanis with deep knowledge of the
Afghan Taliban say that they have
suffered heavy losses in the last year
and that they are struggling in some
areas to continue the fight.
‘‘The Afghan Taliban have, I think,
run into problems,’’ said Rustam Shah
Mohmand, a former Pakistani interior
minister who served as ambassador in
Afghanistan after 2001 and as a peace
negotiator with the Taliban.
‘‘So many of them have been killed in
the last one to one and a half years as a
consequence of targeted assassina-
tions,’’ he said in an interview. ‘‘That
has depleted the strength, capacity and
ability of the Taliban.’’ Commanders
were without communications and re-
‘‘We’ve heard of infighting
that reportedly has led to
internal violence at several
points in recent months.’’
sources and were struggling to find re-
cruits to replace those killed, he said.
One Taliban commander from Kunar
Province said losses had been so high
that he was considering going over to
the side of the Afghan government in or-
der to get assistance for his beleaguered
community. ‘‘This does not mean the
Taliban will stop fighting, but maybe it
will be at a reduced level,’’ Mr.
Mohmand said.
Insurgents have already switched
tactics to suicide attacks on soft targets
— like recent attacks on a bank, an army
recruitment center and a construction
company that all caused high casualties
— because they are not capable of con-
INTERNATIONAL HERALD TRIBUNE
BRIAN FERGUSON/U.S. AIR FORCE, VIA REUTERS
TAJIKISTAN
UZBEK.
TURKMENISTAN
KUNAR
AFGHANISTAN
KABUL
HERAT
Kandahar
Peshawar
HELMAND ZABUL
Islamabad
Marja Chaman
Quetta
KANDAHAR
IRAN PAKISTAN
INDIA
Karachi
200 km
fronting U.S. and NATO forces in con-
ventional battles, said Samina Ahmed,
director of the International Crisis
Group in Pakistan.
The Taliban have always been able to
survive temporary setbacks on the bat-
tlefield by pulling back to Pakistan,
where many have homes and busi-
nesses. Fighters have also found sanctu-
ary and medical care in the anonymity of
the refugee camps where over a million
Afghans have lived for a generation
through Afghanistan’s various wars, and
in the outlying suburbs of Pakistani cit-
ies like Peshawar, Quetta and Karachi.
Yet Pakistan has become a much more
uncertain environment for the Taliban
because the United States has increased
its attacks in Pakistan, the new civilian
government is openly hostile to them
and the military is seeking to control
them and influence any future settle-
ment they make with Kabul, Lakhdar
Brahimi and Thomas Pickering, who
lead an International Task Force on Af-
ghanistan, reported last week. Mr.
Brahimi, an Algerian, is a former U.N. en-
voy, while Mr. Pickering, an American,
has served as U.S. ambassador to several
countries and the United Nations.
In the anti-U.S. spy mania that seized
Pakistan after an American working for
the C.I.A., Raymond A. Davis, shot and
killed two Pakistanis in the city of Lahore
on Jan. 27, Pakistani officials and politi-
cians have accused the C.I.A. of running
....
MATIULLAH ACHAKZAI/EUROPEAN PRESSPHOTO AGENCY
numerous covert programs around the
country. A Pakistani intelligence official
confirmed that C.I.A. operatives were us-
ing their own local agents to target
Qaeda-linked militants with drones in Pa-
kistan’s tribal areas, and speculated that
they could be trying to expand that cam-
paign to reach other Pakistani militants
and Afghan Taliban inside Pakistan.
The C.I.A. has been formulating such
a plan for months, according to two
former Afghan security officials who
spoke on condition of anonymity be-
cause of the covert nature of their work.
The Americans have been using tribes-
men, including members of the Taliban
they have turned, to attack other
Taliban groups in the border areas, one
of the officials said. But others, includ-
ing officials on both sides of the border,
said it could be the work of Pakistan’s
premier spy agency, the Directorate for
Inter-Services Intelligence.
‘‘Their method is brutality,’’ Abdul
Rahim Mandokhail, a Pakistani senator
from the southwestern border region
near Quetta, said of the spy agency. ‘‘If
there is only a little opposition, their
method is to kill the man,’’ he said. He
had no specific information on recent
killings, because it was too dangerous to
investigate such things, he said.
A Pakistani government official work-
ing in the border region said both U.S.
and Pakistani intelligence agencies
favored different insurgent groups and
were striking at each other’s.
The three commanders killed in
Quetta last month all led units fighting in
Marja, in Helmand, the southern Afghan
province where U.S. marines have
struggled to establish security after
more than a year of counterinsurgency
operations. One of the commanders was
Hajji Khalil, in his late 30s, who com-
manded several groups of fighters in
Marja, according to Baz Gul Khan, a pro-
government militia leader in Marja. ‘‘He
was famous in all of Marja,’’ Mr. Khan
said. ‘‘He had about 300 men or more.’’
Hajji Khalil was killed in his own
house, by two men who appeared to be
Taliban who stayed the night with him
in his guest room. The two men left un-
seen by the street entrance, and the
next morning Hajji Khalil’s family found
him slain in the room, an Afghan busi-
nessman who is close to the Taliban
said. He did not want to be identified for
fear of his safety.
Another commander, known as Man-
sour, was gunned down while riding his
motorbike along Saryab Road west of
the city. He led up to five units of men in
Marja and operated out of a rented
house in Quetta, a clear sign that he en-
joyed the patronage of Inter-Services In-
telligence, the businessman said. He did
not know the name of the third Taliban
commander who was killed but said that
he was also from Marja and that he was
responsible for communication between
the senior Taliban and the fighters.
Mr. Khan, the militia leader, said the
killings were a sign that the Taliban
were in decline. ‘‘We have a saying that
when a goat becomes sick, he attracts
every disease,’’ he said. ‘‘I think the
Taliban have lost momentum, they are
losing the fight and so the Pakistanis do
not need them and so they will kill
them,’’ he said.
Carlotta Gall also reported from Is-
lamabad. Employees of The New York
Times contributed reporting from Kabul
and from southern Afghanistan.
Victory123
....
THE GLOBAL EDITION OF THE NEW YORK TIMES FRIDAY, APRIL 1, 2011 | 3

World News
europe

France gives its nuclear power industry a 2nd look

PARIS
BY KATRIN BENNHOLD
AND DAVID JOLLY
The Fukushima nuclear crisis has
prompted anti-nuclear marches across
the world, persuaded the Chinese au-
thorities to delay the construction of new
reactors and helped the German govern-
ment lose an important state election.
In France, a country that obtains
nearly 80 percent of its electricity from
nuclear energy, compared with 24 per-
cent in Japan and 19 percent in the
United States, there has been conspicu-
ously little reaction.
So when the president of the French
nuclear safety watchdog stated the ob-
vious this week — ‘‘Nobody can guaran-
tee that there will never be a nuclear ac-
cident in France’’ — it came as
something of a shock to a country that
has long prized its nuclear industry.
France has quietly begun reassessing
the risks of nuclear power.
President Nicholas Sarkozy under-
scored the point Thursday, when he
traveled to Japan and called for new nu-
clear safety guidelines for all countries
in the Group of 20, over which he cur-
rently presides.
‘‘Japan is not alone,’’ said Mr.
Sarkozy, who was the first foreign lead-
er to visit Japan since the March 11
earthquake and tsunami devastated the
coast north of Tokyo and set off the
crisis at the Fukushima Daiichi Nuclear
Power Station.
He said global nuclear regulators,
who are to gather under the auspices of
the International Atomic Energy
Agency in June, should meet earlier, in
May, to discuss the implications of the
Japanese crisis.
A day earlier in Paris, the head of
France’s Nuclear Safety Authority, An-
dré-Claude Lacoste, told members of
Parliament that the country would draw
the necessary lessons from the Japa-
nese experience and upgrade safety
procedures where needed. The most ur-
gent task — and one so far neglected, he
acknowledged — is a re-evaluation of
the potential impact of natural disasters
on nuclear safety.
The fact that more than one natural
disaster can occur at the same time, as
happened in Japan, ‘‘is a subject that
until now we didn’t really take into ac-
count,’’ he said, promising a fresh look
at the risk that tectonic activity could
produce on French territory, particu-
larly along the coast.
Over the last millennium, France has
been the site of about 1,700 noticeable
month ordered a safety audit of the
country’s 58 nuclear power plants. Nu-
clear experts will also review a decision
to keep a number of plants older than 30
years running and will cooperate with
the Interior Ministry to update accident
management and evacuation proce-
dures, particularly in heavily populated
areas around reactor clusters like those
near Dunkerque, in northern France.
Finally, Mr. Lacoste said, cooling me-
chanisms will be studied in more detail,
not least because their failure at
Fukushima.
Despite a number of minor accidents
(and some narrowly averted serious
ones) over the years, the anti-nuclear
movement in France has never been
able to develop a following resembling
anything like that in Germany.
The industry’s history here is one rea-
TORU HANAI/REUTERS son that, when French officials talk of
Prime Minister Naoto Kan of Japan, left, and President Nicolas Sarkozy of France in Tokyo tougher safety measures, the world is
on Thursday. Mr. Sarkozy called for new nuclear safety guidelines for all G-20 nations. likely to listen.
Other countries certainly took note
when France became the first to advise
earthquakes, geologists estimate. Its necessarily a good guide to the future. its citizens to leave Tokyo and provided
nuclear reactors were built to withstand ‘‘Climate change is changing the situ- planes to repatriate those unable or un-
five times the impact of the worst earth- ation,’’ he said, ‘‘Extreme events that so willing to travel south, just days after
quake ever registered here. But with far happened every thousand years the earthquake struck. Many countries
severe flooding incidents and bad along the coast now happen every hun- eventually followed suit. The recom-
weather having intensified in recent dred years.’’ mendation was the result of nuclear ex-
years, Mr. Lacoste said, the past was not Prime Minister François Fillon last perts at the Japanese subsidiary of
Areva warning the French ambassador
about a potential risk of contamination
in Tokyo if the wind turned and rain then
deposited radioactivity from the dam-
aged reactors in the capital.
(This week, the advice was somewhat
relaxed, with the Foreign Ministry now
advising people not to travel to Tokyo un-
less they had an ‘‘imperative’’ reason.)
Whatever traces the current crisis
will leave, France is unlikely to entirely
turn its back on nuclear power, a legacy
of Charles de Gaulle, the former presi-
dent, as it has been broadly embraced
by politicians across the political main-
stream for decades.
The nuclear industry in France is
highly advanced and provides a major
source of export revenue. Three par-
tially state-owned French companies —
Areva, GDF Suez and EDF — are
among the most important players in
the sector globally. EDF operates its 58
French nuclear reactors at 19 sites, the
largest pool of plants globally. It
designs, maintains, operates and de-
commissions plants.
In 2008, France produced 439 terawatt
hours of nuclear power, representing 16
percent of global production.
Matthew Saltmarsh contributed report-
ing.

B R I E F LY

Europe
Italy clearing
cartier.com

a burdened
Sicilian isle
G E N EVA

Letter bomb slightly wounds 2

at Swiss nuclear lobby group
A letter bomb exploded Thursday at
the office of a Swiss nuclear industry
lobby group, slightly wounding two em-
ployees, a local police spokesman said.
The letter bomb exploded at the
fourth floor office of the group, Swiss-
nuclear, in the northern town of Olten
at 7:45 a.m. as employees were opening
mail, said the spokesman, Andreas
Mock. He said that one employee had
suffered wounds to her hands and arms
and that another reported of hearing
problems as a result of the explosion.
No group has taken responsibility for
the blast, Mr. Mock said.
Controversy in Switzerland over nu-
clear power has increased since the nu-
clear crisis in Japan began after the
earthquake and the tsunami that struck
there March 11. The Japanese disaster
has prompted the Swiss energy minis-
ter, Doris Leuthard, to suspend re-
quests to build two new plants and to
order a review of safety at the five oper-
ating nuclear power stations in
Switzerland.
FABRICE COFFRINI/AFP
The Swissnuclear office in Olten on Thursday.
DUBLIN
Britain and Ireland close
Ulster terrorism panel
The governments of Britain and Ire-
land on Thursday closed an expert pan-
el that had provided assessments of
terrorism trends in Northern Ireland.
The move concludes seven years of
investigations by the panel into the ac-
tivities of the Irish Republican Army, its
splinter groups and varied anti-Catholic
gangs in Northern Ireland. The group
included a former C.I.A. director and a
former commander of the anti-terror-
ism unit of Scotland Yard. Analysts say
its early reports blaming the I.R.A. for
major crimes spurred the group to re-
nounce violence and disarm in 2005.
Britain’s senior official in Northern
Ireland, Owen Paterson, said the ex-
perts’ final report would be published
after the May 5 election of the Northern
Ireland Assembly. (AP)
P RAG U E
Czech Constitutional Court
eases phone and Internet law
The Constitutional Court of the Czech
Republic on Thursday overturned
parts of a law that require telephone
operators to retain data on telephone
calls and Internet traffic.
The court ruled that the practice was
unconstitutional. It said the provisions
ordering data on all calls, faxes, text
messages and e-mail exchanges to be
retained for six months enabled a
‘‘massive’’ invasion into citizens’ rights
and were not in line with the rule of law.
Fifty-one members of Parliament ap-
pealed to the court to overturn the law,
which was passed as part of anti-terror-
ism efforts.
In Germany, the Federal Constitution
Court issued a similar ruling last year.
The law stems from a European Union
directive. (AP)
of migrants
ROME
After Berlusconi pledge,
some 2,000 people are
shipped to the mainland
THE ASSOCIATED PRESS
Italy shipped more than 2,000 migrants
to detention camps on its mainland
Thursday, relieving pressure on a tiny
island off Sicily that has been over-
whelmed by a relentless stream of boats
full of illegal arrivals from North Africa.
Lampedusa, a fishing and tourist is-
land with a population of 5,000, ran out
of shelters days ago when migrant num-
bers peaked at more than 6,000, forcing
many of the Tunisians and others to
sleep in the open air on docksides and in
fields.
On Thursday, Italian soldiers joined
local sanitation workers in ridding the
island of piles of rubbish left by the de-
parting migrants.
There was concern about the minors
among the migrants, which a Save the
Children representative on the island,
Filippo Ungaro, estimated number
about 350.
Under international conventions, the
minors cannot be deported and should
be put into temporary foster homes
while asylum paperwork is processed,
Ungaro told Sky TG24 TV.
The government, at a cabinet meeting
Thursday, authorized funding for unac-
companied minors so they could be
placed in temporary homes.
Prime Minister Silvio Berlusconi,
pressured by anti-immigrant coalition
allies, promised while touring the island
on Wednesday that all of the migrants
would be either deported to Tunisia or
transferred to mainland detention cen-
ters within two to three days. Most of
the arrivals are Tunisians who fled un-
rest in their homeland in the hope of
finding family members or jobs in
France.
Mr. Berlusconi complained Thursday
that Tunisia should have stopped the
boats from setting out from its waters.
Foreign Minister Franco Frattini has
voiced frustration that other European
Union countries have done little or noth-
ing to help relieve Rome of the migrant
burden.
The illegal arrivals ‘‘must be depor-
ted either to Tunisia or be spread
around to other European countries,’’
Mr. Frattini said on an Italian TV news
show on Thursday.
‘‘It’s stunning that there is no solidar-
ity from any of the European countries,
including those which many Tunisians
would want to reach,’’ such as France.
Italian TV has added fuel to his argu-
ment by running video footage of
Tunisians being sent back from Italy’s
border with France, near the Italian
seaside town of Ventimiglia. On Thurs-
day, local workers set up a temporary
100-bed shelter with toilets and showers
in an empty barracks in Ventimiglia for
Tunisians flocking to the town.
The Lampedusa mayor, Bernardino
De Rubeis, said that before dawn 690
migrants were shipped on a chartered
ferry to the region of Apulia, with anoth-
er 600 transported hours later.
A tent camp for some 4,000 migrants
was being hastily set up in the town of
Manduria in the southeastern Italian re-
gion. Other ships, including a naval ves- Haute Joaillerie collection
sel, were anchored off Lampedusa’s
ports, waiting to transfer more mi-
grants to the mainland.
Victory123
4 | FRIDAY, APRIL 1, 2011
world news region in revolt
As battle lines blur in Libya, who’s a civilian?
WASHINGTON
BY THOM SHANKER
AND CHARLIE SAVAGE
As NATO takes over control of airstrikes
in Libya and the Obama administration
considers new steps to tip the balance of
power there, members of the allied coali-
tion have issued stern warnings to rebel
fighters not to attack civilians as they
push against the regime of Col. Muam-
mar el-Qaddafi, according to senior mil-
itary and government officials.
Otherwise, the fog of war will not
shield them from possible bombardment
by NATO planes and missiles, just as the
regime’s forces have been punished.
‘‘We’ve been conveying a message to
the rebels that we will be compelled to
defend civilians, whether pro-Qaddafi
or pro-opposition,’’ a senior Obama ad-
ministration official said. ‘‘We are work-
ing very hard behind the scenes with
the rebels so we don’t confront a situ-
ation where we face a decision to strike
the rebels to defend civilians.’’
The warnings, and intense consulta-
tions within the NATO-led coalition on
its rules for attacking anyone who en-
dangers innocent civilians, come at a
time when the civil war in Libya is be-
coming ever more chaotic and the battle
lines ever less distinct. They raise a fun-
damental question with which the mili-
tary is grappling: What is a civilian?
In the early days of the campaign, the
civilian population needing protection
was hunkered down in cities like
Benghazi, behind a thin line of rebel
fighters who were playing a defensive
role, and so were easily distinguishable
from the attacking government forces.
That’s no longer always the case.
Armed rebels — some in organized mili-
tias, along with other young men who
have picked up rifles to fight them —
have moved out of Benghazi in an effort
to take control of other population cen-
ters en route, they hope, to seizing
Tripoli.
Fresh intelligence this week showed
that Libyan government forces were
supplying assault rifles to civilians in
Surt, a town populated by Qaddafi loyal-
ists. These civilian Qaddafi sympath-
izers, freshly armed by the government
and accompanied by Libyan troops,
were seen chasing rebel forces in non-
military vehicles like sedans and trucks,
according to U.S. military officers.
The increasing murkiness of the battle-
field, as the freewheeling rebels advance
and retreat and fighters from both sides
mingle among civilians, has prompted
NATO members to issue new rules of en-
gagement spelling out when the coalition
may attack units on the ground in the
name of protecting civilians.
It is unclear how the rules are chan-
ging, especially on the critical questions
surrounding NATO’s legal mandate to
A 2nd defection jolts Qaddafi’s regime
LIBYA, FROM PAGE 1
peaceful demonstrators were attacked
by security forces.’’ He placed Mr.
Koussa second after Colonel Qaddafi on
a list of ‘‘some individuals with formal
or de facto authority, who commanded
and had control over the forces that al-
legedly committed the crimes.’’
In a news conference in Tripoli,
Moussa Ibrahim, the Qaddafi govern-
ment spokesman, said Mr. Koussa had
sought leave of a few days to receive
medical care outside the country and
had not contacted the Qaddafi govern-
ment since the day after he crossed the
border into Tunisia.
‘‘I don’t think his sick leave included
London,’’ Mr. Ibrahim said wryly,
adding: ‘‘This is not like a happy piece
of news, is it? But people are saying, ‘So
what, if someone wants to step down?
That is their decision. The fight contin-
ues.’’’
Mr. Ibrahim declined to comment on
the confirmed resignation of Mr. Treki
or myriad other rumors coursing
through the capital about other officials
fleeing the country.
‘‘Colonel Qaddafi is surrounded by
many people who admire him and are
prepared to work with him and under
his leadership,’’ Mr. Ibrahim said. He
said that Mr. Koussa would be replaced
by ‘‘someone good and efficient,’’ but he
declined to identify a successor.
Mr. Koussa served as head of external
intelligence in the 1980s, when Colonel
Qaddafi drew U.S. and Western con-
demnation for attacks like the 1988
bombing of an American passenger
plane over Lockerbie, Scotland. The
bombing killed 270 people, most of them
Americans. In the past, U.S. officials
have said they suspect Mr. Koussa of re-
sponsibility for arranging the attacks.
Mr. Hague described him Thursday as
‘‘one of the most senior members of the
Qaddafi regime,’’ and said that Britain
had been in previously undisclosed con-
tact with Tripoli through Mr. Koussa.
‘‘I have spoken to him several times
on the telephone, most recently last Fri-
day,’’ Mr. Hague said, citing Mr.
Koussa’s departure as evidence that the
Qaddafi government was ‘‘fragmented,
under pressure and already crumbling
from within.’’
He added, ‘‘Qaddafi must be asking
himself who will be the next to go.’’
The defection of Mr. Koussa showed
that at least one longtime associate
seemed to be calculating that Colonel
Qaddafi could not last. The news of his
defection sent shock waves through
Tripoli on Wednesday night after it was
A rebel shelling forces loyal to Col. Qaddafi outside the eastern town of Brega, Libya. NATO members have issued stern warnings to rebel fighters not to attack pro-Qaddafi civilians.
protect rebels who are no longer simply
defending civilian populated areas like
Benghazi but are on the offensive.
‘‘This is a challenge,’’ a senior alli-
ance military officer said. ‘‘The problem
of discriminating between combatant
and civilian is never easy, and it is com-
pounded when you have Libyan regime
forces fighting irregular forces, like the
rebel militias, in urban areas populated
by civilians.’’
Oana Lungescu, the senior NATO
spokesperson, emphasized that the alli-
ance was taking action because Mr.
Qaddafi’s forces were attacking civil-
ians, including shelling cities with artil-
lery. But, she said, if the rebels did like-
wise, NATO would move to stop them,
too, because the U.N. Security Council
resolution ‘‘applies to both sides.’’
But it is no simple matter to follow
that logic. ‘‘Qaddafi is trying to take ad-
vantage of this mixing of combatants
and noncombatants to deter NATO from
announced by the British government. In
addition to his long service with the Liby-
an leader, Mr. Koussa had been closely
involved in the rehabilitation of Colonel
Qaddafi, playing a major role in turning
over nuclear equipment and designs to
the United States when Libya agreed to
end its nuclear program in 2003.
Presumably, British and other West-
ern intelligence officials have a broad
agenda of matters to discuss with him,
including the structure of Colonel Qad-
dafi’s forces. The focus of his debriefing
seemed likely to be on his knowledge of
current issues rather than past inci-
dents like the Lockerbie bombing. But
the BBC reported that Scottish officials
said they did want to talk to him about
the bombing.
The only person convicted in the at-
tack, Abdel Basset Ali al-Megrahi, a
former Libyan intelligence operative,
was released on compassionate
grounds in 2009 while serving a life sen-
tence in Scotland after doctors said he
had terminal cancer.
But for those who have long insisted
that responsibility for the Lockerbie
bombing reached far higher than Mr.
Megrahi, Mr. Koussa’s knowledge
would yield invaluable insights, British
analysts said.
What is unclear is whether his defec-
tion will lead to others.
‘‘We think he could be the beginning
of a stream of Libyans who think stick-
‘‘Colonel Qaddafi is
surrounded by many people
who admire him and are
prepared to work with him.’’
ing with Qaddafi is a losing game,’’ one
senior American official said. ‘‘But we
don’t know.’’
On the ground Thursday in Libya,
rebel forces in Libya began a cautious
regrouping after a panicked retreat.
The government advance Wednesday
appeared to return control of the east’s
most important oil regions to Colonel
Qaddafi’s forces, giving the isolated
government, at least for the day, the re-
gion’s most valuable economic prize.
The rout also put into sharp relief the
rebels’ absence of discipline and tactical
sense, confronting the United States
with a conundrum: how to persuade
Colonel Qaddafi to step down while sup-
porting a rebel force that has been un-
able to hold on to military gains.
On Thursday, as NATO formally took
full control of the campaign, rebel forces
striking,’’ an Obama administration offi-
cial briefed on the intelligence said.
The civil war has seen repeated ad-
vances and retreats by both sides, and
that is expected to continue. The highest
concern is not how to deal with fighters
loyal to the regime, but how NATO
would respond to rebels firing on a town
of Qaddafi sympathizers as they move
toward Tripoli.
Calls by some NATO members to
provide heavier weapons to the rebels
suggest that these worries will only in-
tensify. The deliberations about where
to draw the line, going on at the highest
levels of allied nations and among se-
nior U.S. officials, show how an inter-
vention to stop a potential massacre is
evolving into a much more complex,
and perhaps open-ended, role in poli-
cing the Libyan chaos.
The situation is as complicated legally
as it is militarily. The U.N. Security
Council resolution that authorized a no-
regrouped on the road to Brega to con-
front the loyalist advance, suggesting
that they had been emboldened by al-
lied airstrikes. Other reports said pro-
Qaddafi forces were still present in the
oil port.
In the testimony in Washington, Mr.
Gates and Adm. Mike Mullen, the chair-
man of the Joint Chiefs of Staff, faced
tough questions from members of Con-
gress who are angry about the adminis-
tration’s push into Libya and deeply
skeptical about President Barack
Obama’s plans to end the conflict.
‘‘History has demonstrated that an
entrenched enemy like the Libyan re-
gime can be resilient to air power,’’ Rep-
resentative Howard P. McKeon, Repub-
lican of California and chairman of the
House Armed Services Committee, said
at the start of daylong hearings in both
houses of Congress concerning the al-
lied assault on pro-Qaddafi forces. ‘‘If
Qaddafi does not face an imminent mil-
itary defeat or refuses to abdicate, it
seems that NATO could be expected to
support decade-long no-fly zone en-
forcement like the one over Iraq in the
1990s.’’
Democrats, too, were circumspect.
‘‘Many have asked, ‘Why Libya?’’’ said
Representative Adam Smith of Wash-
ington, the top Democrat on the House
panel.
In response, Mr. Gates said in his
opening statement to the House com-
mittee that American involvement
would be limited, and that in his view,
the conflict would probably end with
Colonel Qaddafi’s removal from power,
either by economic and political pres-
sures or by his own people.
But under questioning from Mr. Mc-
Keon, Mr. Gates said he did not have a
time frame for Colonel Qaddafi’s ouster.
‘‘The bottom line is, no one can pre-
dict for you how long it will take for that
to happen,’’ he said.
Mr. Gates and Admiral Mullen both
suggested that the rebels should look
beyond the United States for direct mil-
itary aid.
‘‘What the opposition needs as much
as anything right now is some training,
some command and control and some
organization,’’ Mr. Gates said. ‘‘It’s
pretty much a pick-up ballgame at this
point.’’
Yet, he said, ‘‘that’s not a unique capa-
bility for the United States, and as far as
I’m concerned, somebody else can do
that.’’
Elisabeth Bumiller and Thom Shanker
contributed reporting from Washington.
flight zone and other steps to protect ci-
vilians makes no distinction between
pro-rebel and pro-Qaddafi civilians.
Senior legal advisers to the military
campaign say that unarmed civilians,
whether living in towns or fleeing the
fighting, are protected by the U.N. reso-
lution, while opposition forces taking an
active part in combat away from cities
are currently seen as falling outside of it.
But one such official acknowledged that
other situations are much less clear.
Noncombatants and the various
shades of opposition, resistance and re-
bellion ‘‘are so intermixed that it is not
feasible to discern where the boundary
between the civilians and opposition
forces lies,’’ the official said. ‘‘There are
also those civilians entitled to protec-
tion that may be armed in order to pro-
tect their families, homes, businesses,
and communities. Other civilians may
join the rebels at certain stages, becom-
ing armed combatants, and then decide
Egyptian fundamentalists see ballot boon
EGYPT, FROM PAGE 1
the energy invested by religious organi-
zations that once damned the democratic
process as a Western, infidel innovation
masterminded to undermine God’s laws.
Mr. Zomor, 64, with his bushy gray
beard and nearly 30 years in prison, has
emerged as a high-profile spokesman
for that sea change since he was re-
leased on March 12.
He and other Salafis, or Islamic fun-
damentalists, rhapsodize about found-
ing political parties and forging alli-
ances with a more mainstream
organization, the Muslim Brotherhood,
to maximize the religious vote.
Several reasons lie behind this re-
markable turnabout, according to se-
nior religious sheiks, junior members
and experts.
Foremost is the desire to protect, if
not strengthen, the Second Amendment
to the Constitution, which enshrines
Shariah, or Islamic law, as the main
source of Egyptian law. The Parliament
to be elected in September will guide the
drafting of a new constitution.
‘‘If the constitution is a liberal one,
this will be catastrophic,’’ Sheik Abdel
Moneim el-Shahat said, scoffing at new
demands for minority rights at a night
class he teaches at a recently reopened
Salafi mosque in Alexandria. ‘‘I think
next they will tell us that Christians
must lead Muslims in the prayers!’’
Second, the Salafis arrived late to the
revolution, with many clerics emphatic-
ally supporting President Hosni
Mubarak and condemning the protest-
ers. Young Salafis rebelled — extremely
rare for a group that reveres tradition
and hierarchy.
‘‘The majority of the Salafi youth
were the people who actually said, ‘No,
this is impossible, we have to be part of
this, it is a just cause,’’’ said Sherif Ab-
del Naser, a 24-year-old Egyptian-
American who now attends political
classes three nights a week at Sheik
Shahat’s cramped mosque.
The Salafi movement is inspired by
the puritan Wahhabi school of Islam
that dominates Saudi Arabia, whose
grand mufti churned out a fatwa con-
demning the Arab uprisings as a West-
ern conspiracy to destroy the Islamic
world. But an array of philosophies ex-
ists under the Salafi umbrella, ranging
from apolitical groups that merely pros-
elytize on the benefits of being a good
Muslim to Al Qaeda. Ayman al-Zawahri,
chief deputy to Osama bin Laden, is an
Egyptian Salafist.
Some Egyptians are convinced that
the government released the likes of Mr.
INTERNATIONAL HERALD TRIBUNE
NASSER NASSER/THE ASSOCIATED PRESS
to return home for whatever reason,
thus transitioning back to civilian non-
combatants.’’
As the fighting draws closer to tribal
areas that are more likely to be pro-Qad-
dafi, the allies fear that the rebels them-
selves will inevitably be trying to take
cities by force and could end up endan-
gering or even killing civilians, too.
That fear, Obama administration offi-
cials said, has driven the warnings to
the rebels that they must not attack ci-
vilians and that they could find them-
selves under attack by the allies if they
disregarded the warnings.
The laws of war are vague about how
to categorize internal rebels. And the
recognized government of a country —
even an internationally despised one —
is generally acknowledged to have a
right to use force to put down an armed
insurrection, said David Glazier, a pro-
fessor of national security law at Loyola
Law School Los Angeles.
Zomor as a kind of bogeyman — to
frighten the country about the possible
downside of democracy. Mr. Zomor said
Salafist violence was only a reaction to
the repression of the Mubarak govern-
ment, but he shocked many Egyptians
by advocating punishments like ampu-
tating thieves’ hands.
In an example of fundamentalists who
are now emerging into public light, the
sons of Omar Abdel Rahman, the blind
sheik who is serving a life sentence in the
United States, convicted in a conspiracy
to bomb the World Trade Center in 1993,
recently addressed a conference at a
ANDREA BRUCE FOR THE NYT
Worshipers attending prayers last month
at a Salafi mosque in Alexandria, Egypt.
five-star Cairo hotel, demanding that the
United States release their ailing father.
‘‘Somebody wants to give the impres-
sion that democracy will bring about the
worst in Egypt,’’ said Hossam
Tammam, an expert on Salafi groups
whose essays appear frequently in Al-
Ahram Weekly.
He finds the threat exaggerated, but
noted that the Salafis would be
hampered in political participation be-
cause they did not accept the idea that
all Egyptian citizens should enjoy equal
rights. The Salafi model is based on me-
dieval Islamic caliphates where minor-
ities were protected but had to pay a tax
for the privilege, and were barred from
the military and many government po-
sitions, he said.
Some famous Salafi clerics have been
preaching national unity and have said
they would preserve the peace treaty
with Israel. But more exclusionary
thinking also emerges in sharp relief.
Sheik Mohamed Hussein Yacoub, a
prominent Cairo cleric, generated out-
rage by labeling the referendum results
as a ‘‘gazwa al-sanadiq,’’ or ‘‘conquest
of the ballot boxes,’’ using a freighted
Arabic word for conquest associated
with Islam’s early wars. Egypt belongs
....
Assad moves
to quell
discontent
before rally
DAMASCUS
FROM NEWS REPORTS
Facing a huge protest movement de-
manding reform, President Bashar al-
Assad on Thursday set up committees
to look into the deaths of civilians during
nearly two weeks of unrest and into re-
placing decades-old emergency laws.
The moves appear to be a carefully
designed attempt by Mr. Assad to head
off protests planned for Friday while
showing that he would not be pressured
to implement changes but rather would
make them at his own pace.
On Wednesday, during his first com-
ments since the protests began, he
dashed expectations that he would an-
nounce sweeping changes, instead
blaming a foreign conspiracy for two
weeks of popular fury.
It was not immediately clear whether
the overtures Thursday would succeed
in pacifying a growing protest move-
ment in one of the Middle East’s most
autocratic regimes.
Activists have called for demonstra-
tions across Syrian provinces on Friday,
dubbing it ‘‘Martyrs Day,’’ in what could
prove to be a turning point in the coun-
try’s future.
Syrian television said the ruling
Baath Party’s regional command had
formed a committee made up of legal
experts to study legislation that would
‘‘guarantee the country’s security and
dignity of Syrians and combat terror-
ism.’’
‘‘This would pave the way for lifting
the state of emergency laws,’’ it said.
The widely despised, decades-old emer-
gency laws give the regime a free hand
to arrest people without charge.
The state-run news agency said the
committee would complete its study by
April 25.
Syrian TV also said Mr. Assad had set
up a judicial committee tasked with ur-
gently investigating the circumstances
that led to the death of Syrian civilians
and security forces in the southern city
of Daraa and the Mediterranean city of
Latakia.
Elsewhere in the region Thursday,
tens of thousands of Yemenis commem-
orated dozens of people killed in weeks
of street protests while demanding that
President Ali Abdullah Saleh resign, as
efforts continued to negotiate his exit
from power within the next year.
Protests in the capital, Sana, and else-
where have brought Mr. Saleh’s long
rule to the brink of collapse. (AP, REUTERS)
to the observant, he said, and those who
object can immigrate to North America.
He later claimed that he was joking,
but such attitudes are easy to find
among Salafi foot soldiers. At the Uni-
versity of Alexandria, within sight of the
sparkling Mediterranean, five bearded
Salafi students set up a small table at
the Faculty of Commerce this week to
advocate the benefits of an Islamic
state.
When a Christian student objected,
one fundamentalist argued his point.
‘‘When we launch wars, we do it to
strengthen our religion,’’ he said. ‘‘Will
you fight alongside us to spread our re-
ligion?’’
‘‘I will be angry,’’ replied the other
student.
‘‘We cannot put God’s orders to a ref-
erendum,’’ said Ibrahim Mohamed, 21,
one of the Salafi students. ‘‘Islam says
adulterers must be stoned. Can we
really put this up to a referendum and
allow people to say whether adulterers
should be stoned or not?’’
Various Salafi groups have been tak-
ing the law on social issues into their
own hands, including severing a school-
teacher’s ear about 10 days ago in Upper
Egypt after accusing him of renting an
apartment to prostitutes.
On Monday, the Egyptian Army inter-
vened in Fayoum to calm violence that
broke out after Salafists destroyed
places selling beer and the owners shot
and killed a Salafi. Critics say the Salafi
program is too religious to have broad
appeal; while the Muslim Brotherhood
frames its arguments in policy terms,
the Salafis emphasize spiritual benefits
that play well among the poor.
Alarmed by the violence, Ali Gomaa,
Egypt’s grand mufti, is planning a con-
ference of Muslim clerics and other spir-
itual leaders this month to try to estab-
lish consensual guidelines for
separating religious and political dis-
course — for both Muslims and Christi-
ans.
Some experts hope that the emer-
gence of the Salafis will create a healthy
attempt to reconcile Islam with democ-
racy.
‘‘The Salafis have realized that the
only way for them to survive is to be po-
litically engaged,’’ said Mr. Tammam,
the expert on Salafi groups. ‘‘If the
Salafis are absorbed into the political
system here, they can be reformed, but
this will not eliminate radical thinking
for good.’’
Amr Emam and Lara El Gibaly contrib-
uted reporting.
Victory123
....
THE GLOBAL EDITION OF THE NEW YORK TIMES FRIDAY, APRIL 1, 2011 | 5

africa united states world news

Tea Party’s corporate reach

An allied lobbyist group
wages tax battle for
Indonesian company
BY MIKE MCINTIRE
The Tea Party movement does not have
a presence in Indonesia, where the term
evokes cups of orange pekoe and sweet
cakes rather than angry citizens in
‘‘Don’t Tread on Me’’ T-shirts.
But a Tea Party group in the United
States, the Institute for Liberty, has vig-
orously defended the freedom of a giant
Indonesian paper company to sell its
wares to Americans without paying tar-
iffs. The institute set up Web sites, pub-
lished reports and organized a petition
drive attacking U.S. businesses, unions
and environmentalists critical of the
company, Asia Pulp & Paper.
Last autumn, the institute’s president,
Andrew Langer, had himself videotaped
on Long Wharf in Boston holding a copy
of the Declaration of Independence as he
compared Washington’s proposed tariff
on paper from Indonesia and China to
JEAN-PHILIPPE KSIAZEK/AGENCE FRANCE-PRESSE Britain’s colonial trade policies in 1776.
A fighter loyal to the strongman Laurent Gbagbo in Abidjan on Thursday as supporters of his rival were said to be moving in. Tariff-free Asian paper may seem an
unlikely cause for a nonprofit Tea Party
group. But it is in keeping with a succes-
with a Washington public affairs firm
known for creating corporate cam-
paigns presented as grass-roots efforts.
For the institute, the embrace of a for-
eign conglomerate’s agenda is a venture
into new territory — and distinguishes it
among Tea Party advocacy groups. The
issue, Mr. Langer asserted, is important
to working Americans who might have to
pay more for products as varied as chil-
dren’s books and fried-chicken buckets
made of coated paper from Asia. He said
the institute had not accepted money di-
rectly from Asia Pulp & Paper, although it
was possible the company had paid oth-
ers who then contributed to the institute.
Those on the receiving end of the in-
stitute’s attacks — strange bedfellows
like Greenpeace, Staples and Asia Pulp
& Paper’s U.S. competitors — are uni-
fied in their skepticism of its motives.
‘‘If you can spend as much money as
you want and remain anonymous, then
it doesn’t matter if you’re an overseas
company or the Koch brothers, you pay
the same network of anti-regulatory
front groups,’’ said Scott Paul, director
of Greenpeace’s forest campaign.
Like many other nonprofit organiza-
tions on the Tea Party bandwagon, the
Tariff-free Asian paper may
seem an unlikely cause.
Americans for Prosperity, the institute
co-sponsored early Tea Party events in
Washington and published a guide
called ‘‘How to Brew a Tea Party.’’
Because the institute is a tax-exempt
group, its filings with the Internal Rev-
enue Service are supposed to be pub-
licly available, but Mr. Langer said re-
turns for the past couple of years were
being amended and refiled. The last
available filing showed it took in $92,500
in 2007 — a fraction of what it has spent
since on several major campaigns.
Mr. Langer’s latest initiative, defend-
ing Asian paper imports, is the central
theme of his project called the Con-
sumers Alliance for Global Prosperity,
started with Frontiers of Freedom.
Domestic paper companies and their
employee unions, complaining that
China and Indonesia were subsidizing
exported paper products, petitioned
U.S. trade officials several years ago to
slap tariffs on them. The main target,
Asia Pulp & Paper, is also under attack
over its logging practices.
Last year, with a tariff decision loom-
ing, Asia Pulp & Paper went on the offen-
sive. It deployed lobbyists and retained
Mr. Oxley, the Australian former diplo-
mat, who runs a policy group in Washing-
ton, World Growth International, which
has long defended commercial forestry

Ivory Coast rebels near big prize

DAKAR, SENEGAL
Army chief of staff quits
as main city is encircled
and fierce fight is feared
BY ADAM NOSSITER
The battle for the presidency in Ivory
Coast neared a decisive phase Thurs-
day as opposition forces reached the
outskirts of Abidjan, the country’s com-
mercial center, and the government’s
army chief fled his post.
The army chief of staff, Gen. Phillippe
Mangou, sought refuge for himself and
his wife and five children in the home of
the South African ambassador in Abid-
jan, the South African Department of In-
ternational Relations said.
His flight appeared to deal a significant
blow to Laurent Gbagbo, the strongman
whose forces have crumbled from east to
west in Ivory Coast. A string of cities, in-
cluding the strategic cocoa-exporting
city of San Pedro, have fallen to forces
loyal to Mr. Gbagbo’s rival, Alassane Ou-
attara, as they have swooped south to-
Mr. Gbagbo’s loyalists.
By late afternoon Wednesday, Mr. Ou-
attara’s troops had taken the administra-
tive capital, Yamoussoukro, amid wel-
coming greetings and celebratory
gunfire from citizens, two residents there
said. Meanwhile, Mr. Soro delivered an
ultimatum to Mr. Gbagbo on French ra-
dio and television, saying he had only
‘‘several hours’’ to give up power.
Spokesmen for Mr. Ouattara said the
taking of Yamoussoukro had been ac-
complished with hardly a shot fired. ‘‘It
was like butter,’’ said Capt. Léon Alla, the
spokesman for Mr. Ouattara’s military.
The capture of Yamoussoukro was
mostly a symbolic victory for Mr.
Gbagbo’s opponents, as the country’s
government and economy operate from
the commercial capital, Abidjan. Still,
Yamoussoukro, with a population of
about 200,000, has resonance for Ivori-
ans. It was both the birthplace and the
brainchild of the country’s founder, Fé-
lix Houphouët-Boigny, who led Ivory
Coast to independence in 1960.
Mr. Houphouët-Boigny built a giant
basilica there, and Mr. Gbagbo has con-
tinued his policy of designing grandiose
projects for what had been a simple vil-
Mr. Gbagbo’s terrain.
‘‘If they can do this today, it’s really
tough for Gbagbo,’’ Rinaldo Depagne, an
Ivory Coast specialist with the West
Africa office of the International Crisis
Group, said Wednesday. ‘‘It’s the second
city, the city of the founding father.’’
There was further evidence of deterio-
rating conditions in the country on Wed-
nesday. Residents reported gunfire ex-
changes, and the French government
said its ambassador’s motorcade had
been fired on by Mr. Gbagbo’s forces.
The French Foreign Ministry said this
was ‘‘suggesting once more that Laurent
Gbagbo no longer respects anything.’’
The next stage is likely to be the
toughest of a four-month fight by Mr.
Ouattara to accede to office after the No-
vember election. While a series of stra-
tegic towns in the cocoa belt have fallen
with surprising ease this week to Mr.
Ouattara’s forces — with several re-
ports of Gbagbo forces’ giving up, sur-
rendering or simply shedding their uni-
forms — the taking of Abidjan is likely to
be much more difficult.
A sprawling metropolis of some four
million in normal times — though as
many as a million have already fled, ac-
sion of pro-business campaigns — pro-
moting commercial space flight, palm
oil imports and genetically modified al-
falfa — that have occupied the recent
agenda of the Institute for Liberty.
The Tea Party movement is as deeply
skeptical of big business as it is of big
government. Yet an examination of the
Institute for Liberty shows how the in-
fluence industry in Washington has ad-
apted itself to the Tea Party era.
In a quietly arranged marriage of
seemingly disparate interests, the insti-
tute and kindred groups are increas-
ingly the bearers of corporate messages
wrapped in populist Tea Party themes.
In a few instances, their corporate
partners are known — as with the bil-
lionaire Koch brothers’ support of
Americans for Prosperity. More often,
their nonprofit tax status means they do
not have to reveal who pays the bills.
Mr. Langer would not say who fi-
nanced his Indonesian paper initiative.
But his sudden interest in the issue coin-
cided with a public relations push by
Asia Pulp & Paper. And the institute’s
work is remarkably similar to that pro-
duced by one of the company’s consult-
ants, a former Australian diplomat
named Alan Oxley, who works closely
Institute of Liberty predates the move-
ment. It was created in 2005 by Jason
Wright, an author of best-selling inspir-
ational novels who had worked for Fron-
tiers of Freedom, a conservative policy
group. In his three years at the institute,
Mr. Wright said during an interview, he
was often approached by public rela-
tions consultants pitching projects for
clients.
One of his most visible stands was op-
posing net neutrality, a tenet of Internet
policy criticized by broadband suppliers
who want the right to charge for differ-
ent levels of service. With the rise of the
Tea Party movement in 2009, the insti-
tute, by then under Mr. Langer, helped
inject the issue into the national dia-
logue; soon signs equating net neutral-
ity with government oppression be-
came a staple at Tea Party rallies.
Mr. Langer had arrived the previous
year from the National Federation of In-
dependent Business, a small-business
lobbying group. An enthusiastic, talk-
ative man of 40 who dabbles in Republi-
can politics in Maryland, he quickly saw
potential in the Tea Party phenomenon.
Working with FreedomWorks and
and palm oil interests in Southeast Asia.
World Growth issued a report in June,
‘‘Green Protectionism,’’ asserting that
groups like Greenpeace colluded with
U.S. labor unions and paper manufac-
turers to hobble Asian paper imports. In
September, Asia Pulp & Paper released
a review by Mr. Oxley criticizing a
Greenpeace study of the company’s log-
ging practices.
Three days later, Mr. Langer came
out with his own detailed report that
hewed to these same themes and put up
a Web site, Pulp Wars, to promote it.
Although some of his material cites
Asia Pulp & Paper, Mr. Langer insists
that he had not even heard of the com-
pany when he was setting up Con-
sumers Alliance in August to call atten-
tion to free trade and affordability of
products. He decided to do its first cam-
paign on paper imports, he said, be-
cause the tariffs — which were ap-
proved in October — could raise
textbook prices.
Internet domain records, however,
show that Pulp Wars was created
shortly before the Consumers Alliance
Web site began in mid-August, suggest-
ing that the paper issue was driving the
project from the start.

ward Abidjan. The city is the crucial lage until recent times. Capturing the
stake in what has now become an open city showed a clear rebel advance on
war for the presidency in French-speak-
ing Africa’s former economic leader.
Mr. Ouattara, who has been recog-
nized internationally as the winner of
the presidential election in November,
said Thursday in a televised speech that
GUINEA
his forces had reached Abidjan, march-
ing across the country ‘‘to re-establish
democracy and to ensure that the
people’s vote is respected.’’
‘‘To all those who are still hesitant,’’
he said, addressing Mr. Gbagbo’s mili-
tary officers and fighters, ‘‘I ask you to
LIBERIA
serve your country and to return to the
lawful side.’’
Mr. Ouattara’s forces were surround-
ing the city, according to his prime min-
ister, Guillaume Soro. Abidjan is divided Gulf of Guinea
neighborhood by neighborhood be-
tween supporters of Mr. Ouattara and 200 km
sa d Ear
cording to the United Nations — it is
home to the core of Mr. Gbagbo’s resis-
tance. Some analysts are predicting ve isc ly
MALI BURKINA that he will not give it up without a
up ou bir
to nt d
FASO tough fight. ‘‘I think there will be a
battle for Abidjan,’’ said Mr. Depagne,
the Ivory Coast specialist.
But Mr. Ouattara’s camp sought to
£4 -
IVORY COAST
minimize such talk on Wednesday, ap- 00
parently in a bid to speed the military
defections that have already occurred.
Yamoussoukro
‘‘I don’t think there will be a fight,’’
said Captain Alla, the Ouattara military
GHANA
spokesman. ‘‘The barracks are deser-
Abidjan ted. We’re asking our brothers-in-arms
not to expose their lives.’’ But he added
San Pedro a warning: ‘‘For those who think their
IVORY lives depend on defending Mr. Gbagbo,
COAST they will realize the consequences.’’
AFRICA
J. David Goodman contributed reporting
from New York.

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Victory123
6 | FRIDAY, APRIL 1, 2011
Views
International Herald Tribune
THE GLOBAL EDITION OF THE NEW YORK TIMES
STEPHEN DUNBAR-JOHNSON Publisher
MARTIN GOTTLIEB Editor, Global Edition
ALISON SMALE Executive Editor
TOM REDBURN Managing Editor
PHILIP McCLELLAN Deputy Managing Editor
URSULA LIU Deputy Managing Editor
KATHERINE KNORR Assistant Managing Editor
RICHARD BERRY Editor, Continuous News
RICHARD ALLEN News Editor
SERGE SCHMEMANN Editor of the Editorial Page
PHILIPPE MONTJOLIN Senior Vice President, Operations
ACHILLES TSALTAS Vice President, Circulation and Development
CHANTAL BONETTI Vice President, Human Resources
JEAN-CHRISTOPHE DEMARTA Vice President, International Advertising
CHARLOTTE GORDON Director of Strategy and Marketing
RANDY WEDDLE Managing Director, Asia-Pacific
SUZANNE YVERNÈS Chief Financial Officer
Stephen Dunbar-Johnson, Président et Directeur de la Publication
THE WRONG PRIORITIES
While Americans struggle to recover
from the financial crisis, the Federal
Reserve has decided to reward bankers.
The banks may have weathered the financial crisis, but the rest
of America hasn’t. Taxpayers are still on the hook for federally
guaranteed bank debt. Homeowners’ equity continues to erode
and savers are still getting hammered by near zero interest
rates. Joblessness remains high. State budgets are ravaged.
So whom have Washington policy makers singled out for
help? Bank shareholders, including bank executives who are
invariably big holders of stock in their banks.
The Federal Reserve recently gave the all-clear for several
banks to increase dividends and expand share buybacks,
among them JPMorgan Chase, Wells Fargo, Citigroup and
Goldman Sachs. That’s good news for bank investors, but it is
a dubious development for everyone else.
The dividend-boosting banks that were too big to fail be-
fore the crisis are even bigger now, while reforms to rein
them in are under political attack even before they have been
implemented. Sheer size and inadequate regulation — the
combination that led to the crisis — argue for banks to use
their earnings to build bigger capital cushions, not to pay div-
idends and repurchase shares.
Yet Fed officials have concluded that many banks are
sound enough to pay out cash and still withstand a severe
shock should one occur again. It’s hard to share their confi-
dence. Before it approved new dividends, the Fed required
banks to test their crisis-readiness against several criteria,
but it did not release detailed results of the tests. Public data
do not inspire confidence either. There is much debate over
whether banks are valuing their mortgage assets correctly,
and, by extension, whether they are adequately capitalized.
What is known is that recent bank profits have been boosted
not by increasing revenues, but by downward revisions to ex-
pected future losses. With house prices falling anew, further
reducing the value of mortgage assets, how reasonable is that?
Big banks that plan to increase payouts still hold nearly
$120 billion in government-backed debt. The subsidized
bonds come due between now and the end of 2012. Paying
shareholders before the bonds are retired puts bank in-
vestors before taxpayers — talk about skewed priorities.
When it comes to redress and reward, bank shareholders
should be at the back of the line, behind taxpayers who stand
behind too-big-to-fail banks and behind homeowners who are
bearing the brunt of a housing debacle for which banks bear
considerable responsibility. For the Fed to allow new dividends
and bigger buybacks before these issues are settled is a dis-
play of the same type of ‘‘banks first’’ favoritism that got us in-
to this mess to start.
Dandy Yankee noodle
Pierangelo Castagneto
On Feb. 6, 1802, a group of notable
guests were invited by Thomas Jeffer-
son for dinner at the White House. One
of them, Manasseh Cutler, a Federalist
representative from Massachusetts,
described the extensive menu offered:
‘‘Rice soup, round of beef, turkey, mut-
ton, ham, loin of veal, cutlets of mutton
or beef, fried eggs, fried beef.’’
At some point during the dinner,
however, a taste controversy ensued.
Cutler was negatively impressed by ‘‘a
pie called macaroni, which appeared to
be a rich crust filled with the strillions
of onions, or shallots, which I took it to
be, tasted very strong, and not very
agreeable.’’
After a whispered murmuring with
Meriwether Lewis, the secretary to the
President who was about to become,
with William Clark, the leader of the
celebrated Corps of Discovery, the mys-
tery was disclosed: ‘‘Mr Lewis told me
there were none in it; it was an Italian
dish, and what appeared like onions
was made of flour and butter, with a
particularly strong liquor mixed with
them.’’
Despite Cutler’s gastronomic dissat-
isfaction, by that time macaroni had be-
come a habitual serving at the White
House, a gastronomic innovation
brought back from Europe by Jefferson.
Called to invigorate the diplomatic
action of the young republic, and even-
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Pakistan is also erupting — against the U.S.
Obama’s Peter Charles Choharis
policy is Shamshek Asad
failing as
resentment
over drone As U.S. forces were firing hundreds of
missiles to establish a Libyan no flight
strikes and zone, Pakistani newspaper headlines
anti-U.S. were consumed by a different missile
propa- strike: ‘‘Pakistan furious as U.S. drone
strike kills civilians,’’ blared The Ex-
ganda take press Tribune; ‘‘38 killed in drone
their toll. strike on NWA tribal jirga,’’ declared
the Daily Times.
This week marks the second an-
niversary of the Obama administra-
tion’s ‘‘Af-Pak strategy’’ to confront the
‘‘security threats posed by extremists
in Afghanistan and Pakistan.’’ But
while the United States scrambles to
develop a response to protests in North
Africa and the Middle East, its policy
toward Pakistan is crumbling — with
no clear fix in sight.
Last December, the administration’s
‘‘2010 Afghanistan and Pakistan Annual
Review’’ reported positive develop-
ments throughout the region. Accord-
ing to the unclassified version, the U.S.-
Pakistani ‘‘renewed bilateral partner-
ship is helping promote stability in Pa-
kistan’’ and defeat Islamic radicalism.
But today, the facts are otherwise.
Pakistan is deeply divided and radic-
alism is spreading even among the na-
tion’s most privileged classes. After the
governor of Punjab was murdered in
January for supporting the repeal of
Pakistan’s blasphemy law, thousands
took to the streets. But instead of
How assertive should a great power be?
Now that Yan Xuetong
China is a
major
world BEIJING Since the 2008 Olympic
power, Games in Beijing, Chinese analysts
have been debating whether China
should it should take on more international re-
abandon its sponsibility. Two opposite schools of
traditional thought have emerged within China.
On the one hand, a growing chorus of
low profile? critics question China’s decades-old
foreign policy doctrine, first put forth
by Deng Xiaoping, that stresses the im-
portance of keeping a low profile on the
world stage. These analysts say the na-
tion needs to be more bold and assert-
ive in international affairs in a way that
matches China’s newfound status as a
major world power.
On the other hand is the Chinese
mainstream, which says that the inter-
national calls for China to take on more
international responsibilities is a con-
spiracy by Western countries intended
to exhaust our economic resources by
saddling it with more obligations
abroad. An example of this philosophy
is the fact that since the Cold War
ended the Chinese representative to
the United Nations often abstains from
voting at the U.N. Security Council.
I’m firmly in the first camp, the
minority of thinkers who think it is nec-
essary for China to take on more re-
sponsibilities abroad. If China wants to
regain its historical status as a great
tually to replace Benjamin Franklin as tryside with its precious agricultural
American ambassador in Paris, Jeffer- crops: the rice fields outside Novara,
son had arrived in the French capital in the Nebbiolo wine of Piedmont, and the
1784. Between official duties and Parisi- Parmesean cheese produced in the
an pleasures, dinners at the house of small village of Rozzano, near Milan.
Lafayette, preparation of long letters to But macaroni — the word used then
keep his government informed of the as a general term for any kind of pasta
situation in Europe, and lovely country — was the product that Jefferson stud-
strolls with his new acquaintance ied, and liked, the most. Several items in
Maria Cosway, Jefferson was a very the Jefferson Papers reveal the enthusi-
busy man indeed. asm that the Virginian had for macaroni.
Macaroni Nevertheless, he In Paris, Jefferson took note of a re-
found time to escape cipe for making the dish he called
was the
from Paris on three Nouilly macaroni. But a document even
product that different occasions to more interesting is a drawing that he
Thomas see something of very likely made in Genoa, of a macar-
Jefferson France and other oni machine, including detailed infor-
studied, parts of Europe. In mation concerning its production:
and liked, 1786, he visited Eng- ‘‘The best macaroni in Italy is made
the most. land; in the following with a particular sort of flour called Se-
year he traveled in mola, in Naples,’’ Jefferson wrote, ‘‘but
France and Italy, and in almost every shop a different sort of
finally on to Holland and the Rhine re- flour is commonly used; for, provided
gion shortly before returning in Virgin- the flour be of a good quality, and not
ia. ground extremely fine, it will always do
Jefferson was not the typical 18th- very well. A paste is made with flour,
century traveler: He found the Grand water and less yeast than is used for
Tour unappealing. The journals he kept making bread.’’
during his travels reveal a kind of purit- Back in Paris in the fall of 1788, Jeffer-
anical distrust for any purely aesthetic son commissioned his friend William
enjoyments. Ignoring the usual tourist Short, then visiting Naples, to purchase
sites, it was in Italy especially that he a machine for making macaroni. The
satisfied his utilitarian attitude search- machine arrived in Marseille, as the
ing for different kinds of pleasures. American consul there, Stephen Cath-
On April 10, 1787, Jefferson crossed alan Jr., confirmed in a letter dated
the Var River, France’s border with the Aug. 2, 1789.
Kingdom of Sardinia, and proceeded to Jefferson, who was preparing his de-
Nice and northern Italy. During his stay parture, suggested to Cathalan that he
of less than one month, it was not urban ‘‘send the Maccaroni machine you have
life that attracted him but the coun- received for me to William Short,’’ in
protesting the murder, they marched in
support of the law and the assassin. Pa-
kistani lawyers — a group that was in-
strumental in toppling the Musharraf
regime — threw rose petals at the ac-
cused killer and hailed him as a hero.
A few weeks later, another opponent
of the blasphemy law and Pakistan’s
only Christian cabinet member was
gunned down. Although the culprits es-
caped, Rafi Usmani, the grand mufti of
Pakistan, told the Associated Press, ‘‘I
am afraid that this could be an Ameri-
can conspiracy to defame the govern-
ment of Pakistan, Muslims and Islam.’’
Far from a U.S.-Pakistani ‘‘partner-
ship,’’ anti-Americanism is rampant.
Last fall, 29.5 percent
Would a of students in post-
graduate colleges
lower U.S.
and universities iden-
profile and tified the United
more modest States as the greatest
agenda be threat to Pakistan,
more effec- according to a survey
tive and sus- by the Pak Institute
tainable? for Peace Studies.
That number was
more than twice as
many as the next greatest threat, India,
with whom Pakistan has fought four
wars. Only 6.8 percent of Pakistan’s
young elites identified the Taliban as the
greatest threat; 6.5 percent said it was
Al Qaeda. In perhaps the most troubling
response for America’s strategic en-
gagement, 68.3 percent thought Paki-
stan should not support the ‘‘U.S.-led
War on Terror,’’ while only 21 percent
thought it should.
Since then, ongoing drone strikes, the
world power, it must act like a great
world power.
Our group of thinkers draws inspira-
tion from ancient Chinese philosophy,
which regards both material capability
and morality as necessary conditions
for building strong and durable global
leadership. For the sake of making it-
self a rising power that is welcomed by
the rest of the world, China should act
as a humane authority (wang in
Chinese) and take on more internation-
al responsibilities to improve its stra-
tegic credibility.
The idea for a more assertive role ap-
pears to be gaining influence. A few
years ago, almost no Chinese scholar
challenged the principle of noninterven-
tion, of infringing on the sovereignty of
other nations. Recently there are more
and more debates on this issue. Both
the academic and the policy community
debated sanctions on North Korea, the
no-fly zone in Libya, and the proper
government response to the 2009 at-
tacks on ethnic Chinese in Myanmar.
The new debate on China’s interna-
tional role has coincided with changes
in policy.
Soon after Japan’s devastating earth-
quake, Chinese Prime Minister Wen
Jiabao expressed deep sympathy and
solicitude to the Japanese government
and the people. Chinese rescue teams
were mobilized and sent to help with
the recovery process, and the Chinese
Red Cross donated funds to Japan.
Even Chinese Defense Minister Liang
the meanwhile appointed chargé d’af-
faires in Paris. The long awaited tool ar-
rived, but only after Jefferson had left
for the United States, and very likely
was shipped to America later on.
We know nothing about its utilization
at Monticello, but it is clear that macar-
oni became a must on the table of the
INTERNATIONAL HERALD TRIBUNE
editorial opinion
killing of two alleged attackers by the
C.I.A. contractor Raymond Davis, and
the claims of his diplomatic immunity
by the United States, have further in-
flamed public opinion. While payments
to the dead men’s families recently
gained Davis’s release, even moderate
opposition politicians and journalists
have criticized the settlement, even
though the payment of ‘‘blood money’’
is sanctioned by Shariah law.
As for the United States promoting
stability within Pakistan, the Obama
administration’s expanded use of
drones appears to be having the oppos-
ite effect. As early as 2009, according to
a leaked cable, a former U.S. ambassa-
dor to Pakistan, Anne Patterson,
warned that America’s unilateral tar-
geting of militants risks ‘‘destabilizing
the Pakistani state, alienating both the
civilian government and military lead-
ership, and provoking a broader gov-
ernance crisis in Pakistan without fi-
nally achieving the goal.’’
One of the authors of this article,
Shamshek Asad, was raised in Pakistan.
During a trip to Karachi a week ago, he
experienced greater anti-Americanism
than ever before at all levels of society.
More than 60 years after independence
and 40 years after the loss of Bangla-
desh, Pakistan remains extraordinarily
leery of foreign influence. Coupled with
a remarkable belief in foreign conspir-
acies and a decade of anti-U.S. propa-
ganda by Islamists, this generates not
only resentment, but near paranoia
about U.S. intentions in Pakistan.
Optimists argue that U.S.-Pakistani
relations may have hit a rough patch,
Guanglie publicly offered possible mili-
tary rescue help. The Chinese media
has been flooded with sympathetic ac-
counts of Japanese civility in the midst
of disasters.
China’s response to the Libya crisis is
an even more striking example. On
Feb. 26, the Chinese representative to
the United Unions quickly voted for the
U.N. sanctions against the Qaddafi gov-
ernment. Although
I’m firmly in China reverted to its
normal posture by
the camp of
abstaining from the
those who U.N. vote on taking
want to take
military action
on more
against Libya, the en-
responsibili- dorsement of sanc-
ties abroad. tions showed opposi-
tion to the Libyan
government’s harsh
military response to the people’s re-
quest that Qaddafi step down.
Moreover, for the first time China dis-
patched a warship and four military
aircraft to evacuate Chinese citizens
from Libya. From Feb. 22 to March 5,
China evacuated 35,860 nationals and
2,100 foreigners from 12 other countries.
China’s policy on Libya is clearly a
break from the principle of keeping-low-
profile. Sending military forces to Libya
for evacuation implied that China has
learned how to improve its internation-
al image. Even those Chinese who think
we should continue to keep a low profile
did not oppose sending military forces
to Libya. It seems the Chinese govern-
third president of the United States. In
her book ‘‘The Virginia Housewife’’
(1824), Mary Randolph (whose brother
Thomas married Jefferson’s daughter
Martha) provided a recipe for cooking
macaroni, as it were, Monticello style:
‘‘Boil as much macaroni as will fill your
dish, in milk and water, till quite tender;
....
but they remain sound. Skeptics con-
tend that the United States has failed to
bolster President Asif Ali Zardari’s gov-
ernment, despite billions of dollars in
military and civilian aid, and that Amer-
ica’s efforts have yielded more anti-
pathy than gratitude.
Two years ago, the Af-Pak Strategy
answered Pakistani criticism that Amer-
ica had historically abandoned both
countries by committing ‘‘all elements
of international power — diplomatic, in-
formational, military and economic’’ to
the region. It is time to assess whether
this ambitious strategy is working.
The Obama administration should
conduct an independent review of U.S.
policy toward Pakistan. The questions it
should address include: Is the core goal
of the United States — to disrupt, dis-
mantle, and defeat Al Qaeda and its safe
havens in Pakistan — distorting Ameri-
can policy toward Pakistan? Would a
lower U.S. profile and more modest
agenda be more effective and sustain-
able? Do the tactical benefits of drone
strikes further long-term, strategic
goals? And should the U.S. abandon the
‘‘Af-Pak’’ regional approach in favor of
more tailored policies for each country?
There are no easy answers. But after
two years of limited progress in an in-
creasingly radicalized, nuclear Paki-
stan, tough questions are the least of
our worries.
PETER CHARLES CHOHARIS, a visiting fellow
at the American Security Project, prac-
tices international law in Washington.
SHAMSHEK ASAD is an international energy
consultant.
ment learned that international respon-
sibility is mainly defined by political re-
sponses to international crises,
especially security issues, rather than
simply economic aid to poor countries.
For much of the 20th century,
Chinese Marxists and liberals looked to
the West for inspiration. Such Western
values as state sovereignty were adopt-
ed as part of the government discourse
because China had to build up its do-
mestic power free from bullying by out-
side powers. But today, there is in-
creased recognition of the fact that
China must exercise positive influence
on international affairs.
Of course, several factors explain
China’s shift from a self-absorbed
power obsessed with sovereignty to an
influential international actor, not least
of which is China’s growing economic
might. But traditional Chinese values
help Chinese leaders to make sense of
the new emphasis on international re-
sponsibility and to channel China’s
policies in morally desirable ways.
There is evidence to support this
analysis. Many years after Marx’s pic-
ture was moved from Tiananmen
Square, the statue of Confucius was set
up there.
YAN XUETONG is professor of political sci-
ence and dean of the Institute of Modern
International Relations at Tsinghua Uni-
versity in Beijing. He is the author of ‘‘An-
cient Chinese Thought, Modern Chinese
Power.’’
drain it on a sieve, sprinkle a little salt
over it, put a layer in your dish, then
cheese and butter, and bake it.’’
The macaroni supplier for the White
House was Giovanni Battista Sartori,
who in the early 18th century had es-
tablished a pasta factory in Trenton,
New Jersey, believed to be the first of
its kind in America.
So, was Jefferson the first to cele-
brate the wedding of macaroni and
cheese — a dish that would later be a fa-
vorite of another president, Ronald
Reagan? Probably not, but certainly he
contributed in a significant way to put-
ting pasta on American tables.
Macaroni and Parmesan cheese,
along with Nebbiolo wine, were
products that Jefferson appreciated
throughout much of his life, and he of-
ten imported them from Italy.
Two letters show his prolonged pref-
erence for these Italian specialties. In
late 1803, Thomas Kuhn Jr., at that time
American consul in Genoa, refers to a
purchase of Nebbiolo wine — 200 hun-
dred bottles and 3 barrels — to be
shipped to Monticello for a sum of more
than 1,000 pounds. The second letter
from Kuhn, sent shortly afterward, con-
tained a request not only for ‘‘50 Lb.
Naples Maccaroni,’’ but also ‘‘50 Lb.
Bales de Genes,’’ the typical blue fabric
produced in Genoa. But whether
Thomas Jefferson also invented blue
jeans is another story.
PIERANGELO CASTAGNETO is an assistant
professor of history at the American Uni-
versity in Sofia, Bulgaria.
Victory123
....
THE GLOBAL EDITION OF THE NEW YORK TIMES FRIDAY, APRIL 1, 2011 | 7

commentary letters views

Liz Taylor, magician’s assistant

Meanwhile
DI C K C AV E T T
The scene is some sort of upscale fancy
dinner party at the Starlight Roof —
sometime in the late ‘80s? — and I’m in
the spotlight doing my trophy-winning
rope routine from my old magic act,
just as I’ve done it countless times
since learning it from a master magi-
cian in my high school days.
At the point of completing one cut
and restoration, I would toss the rope
into the audience to lure the person
who catches it up to the stage to do the
rest of the cuttings, with me miracu-
lously restoring the rope each time to
astonished gasps and applause.
That night, about halfway back
among the dimly lit diners, I’d glimpsed
a female figure who, in the near-dark-
ness, could almost have passed for
do Elizabeth Taylor justice.
Suddenly I was all thumbs, but
figured she was probably used to having
that effect, and that relaxed me. Some.
What was nice was that she seemed
to be enjoying the moment, fascinated
by the trick and earnestly following my
instructions. A less-classy celebrity
might have tried to screw me up.
Then I said something I regretted.
On about the fourth cut-and-restore,
she had some trouble severing the rope
and I heard myself say, ‘‘You can cut it,
Miss Taylor. Just think of it as the mar-
ital bond.’’ She was so concentrated I
hoped she might have missed it.
There was a noticeable murmur of
disapproval from a few, but before I had
completed a wince, she laughed.
Heartily is hardly the word. The
Taylor laugh wasn’t that of a refined
lady. She gave out with the great full-
throated guffaw known to her friends. It
was robust and delightfully bawdy, more
appropriate to a stevedore than a beauty.
The renowned Liz Laugh was surely
by the time Liz got to the studio, Richard
would be too drunk to continue work,
while her own hearty imbibing disquali-
fied her by the time he sobered up. A di-
lemma because they had scenes togeth-
er and simultaneous sobriety was rare.
At the risk of sudden change of tone,
you can be sure that legions envied
them their fabulous, in the true sense of
the word, lives. (For astonishing de-
tails, see the page-turner ‘‘Furious
Love.’’)
Think how many folks would say
they’d trade their own dreary lives in
an instant to have been one of Those
Two. The glamour, the celebrity, the ad-
oring (and often life-and-limb-threaten-
ing) throngs, the caviar and cham-
pagne, the travel, the passel of dogs and
children hauled along, the sex, the
yachts, the mansions and castles and
whole floors of hotels, the walnut-sized
diamonds and rubies.…
But before making that somewhat
Mephistophelean bargain, I would cau-
tion those who’d readily shed their own

Obama’s exceptionalism
Roger
Cohen
G LO B A L I ST
LONDON Near Carthage, in Tunisia,
there’s an American cemetery where
2,841 military dead rest, victims of the
North African campaign in World War
II. Among them is a young man from
Stillwater, Minnesota, named Robert
Lund. He was 25 when he was killed on
March 29, 1943. A long time ago, I would
sit on a porch in the pretty town of Still-
water and wonder at the gale that could
lift a young man from the middle of a
placid continent to death on a faraway
shore.
America is a restless nation. It was
built by taking in the people of the
world and so it cannot turn its back on
the world. Decades after he was killed,
Lund’s death still haunted the family of
my first wife. With the return of the res-
onant datelines of the ‘‘Desert War’’
against Hitler — Tobruk, Benghazi,
Tripoli — and the return of U.S. forces
to Libya, I’ve been thinking about Lund
and American power.
The limits of that power confronted
President Barack Obama. He was al-
pearing jobs of the home front were his
domain.
And yet, and yet, this cautious presi-
dent, who has been subtly talking down
American power — with reason — has
involved the nation in a new conflict in
Libya, one in which his own defense
secretary holds that the United States
has no ‘‘vital interest.’’ He has joined a
long line of U.S. leaders in discovering
the moral imperative indivisible from
the American idea.
There were many good reasons for
staying out of Libya. A chief strength of
the Arab Spring is that it was
homegrown. The Levant’s suspicion of
the West is bottomless. Obama needs no
tutoring in colonialism. Its lessons were
bred into him. But could he, the nation’s
first African-American president, have
sat passive as the
Speed in forces of Muammar
el-Qaddafi delivered
ousting
a massacre in
Qaddafi, the Benghazi on the
objective North African shore?
from which Maybe there
Western wouldn’t have been a
leaders can- massacre, just anoth-
not retreat, er modest Qaddafi
is essential. bloodbath. Qaddafi is
not Hitler, not even
Saddam. But his
nature is murderous. And so I say
Obama was right to draw a line in the
Libyan sand.
I was against a Libyan no-fly zone,
having seen its uselessness in Bosnia.
My condition for going in was ruthless-
ness. The one unforgivable thing would
have been to involve America in look-
name. Speed in ousting Qaddafi, the ob-
jective from which Western leaders
cannot retreat, is essential. We all know
what happens if this Mad Max war
festers: The coalition fractures,
jihadists seep into a failed state of por-
ous borders, mission creep begins.
Qaddafi can go three ways: through
military defeat, the least likely given
the chaotic rebel traffic-jam on the
coastal highway; through a negotiated
departure, a long shot despite Turkey’s
efforts; or though his inner circle
deserting him, the most promising av-
enue.
Moussa Koussa, the foreign minister,
has just fled to London. He’s the biggest
prize yet from an intense U.S. and Brit-
ish effort to turn top aides. ‘‘We’re doing
a ton in that regard, golden parachutes
etc.,’’ one person involved told me.
The tone of the Qaddafi entourage
keeps changing: first panicked, then
ebullient tirades, now plaintiff. That’s
encouraging. Do whatever it takes. This
regime reeks of ricketiness. Talks with
Libya in recent years mean top Western
officials have relations with the core
people who must, like Koussa, be turned.
Abdullah Al-Sanousi is one prime target.
Obama, having embraced in extremis
the radical idea that ‘‘the United States
of America is different,’’ having taken a
shot at nations that ‘‘may be able to
turn a blind eye to atrocities in other
countries’’ (the rising powers — Brazil,
Russia, India, China — all abstained on
the Libya vote) must now deliver on his
honed interpretation of American ex-
ceptionalism.
As it happens, his deputy national se-
Elizabeth Taylor, if you squinted.
In a merry jest, something made me
say, ‘‘I’ve done this trick a hundred
times and I keep having this fantasy that
some day the person who comes up and
helps me will be some famous, luminous
movie star. Like Elizabeth Taylor.’’
Just before tossing the rope out front,
I detected movement in the dark. I
could see a striking apparition in white,
gliding smoothly like a Rose Bowl float
toward the floor-level stage.
It was.
And it was true what’s been said so
often. Her beauty would take your
breath away.
First gazing upon that sublimely gor-
geous face, you were struck by the fact
that she was even more beautiful in
person. Yes, the camera and screen did
not — and how silly it sounds to say —
LE T T E R S TO T H E E DI TO R
The U.S. in the new Middle East
Bernard Avishai’s ‘‘Next, an Israeli-Pal-
estinian peace plan’’ (Views, March 30)
envisions a continued leading role for the
United States in the region. But the chan-
ging political landscape across the Arab
world suggests a different picture:
America is becoming irrelevant.
As an Egyptian-American, I am dis-
On the occasion of the opening of the exhibition
part of what endeared her to crews and
stagehands, with whom she liked to ex-
change ribald humor.
My late wife, the actress Carrie Nye,
made a dreadful movie called ‘‘Divorce
His, Divorce Hers’’ with the Burtons in
1973. She was a gifted writer and when
she got back from Germany — where
the movie was made for some Burton-
related tax reasons — she penned, for
friends’ amusement, a comic piece
called ‘‘Making It In Munich.’’ It’s
laugh-out-loud funny.
Carrie liked both Burtons, saying she
felt sorry for Elizabeth, and that, being
from the South, she knew the problems
of women married to alcoholics. We nev-
er knew if either of them read ‘‘Making
It In Munich.’’ The piece’s humor de-
rived from such matters as the direc-
tor’s awful dilemmas, like the fact that
heartened that United States is losing
its appeal to the Arab masses.
On a recent visit to Egypt, it was ex-
hilarating to observe the optimism
shared by all. Doormen, taxi drivers,
educated professionals, businesspeople,
maids, students, young and old, all
shared fresh, albeit guarded, feelings of
pride in the country.
drab existence to be Liz or Dick to think
twice. You’re talking about a woman
plagued all her life with 10 people’s med-
ical horrors, heroically endured. He too
had awful illnesses, some not publicly
known. Like hemophilia and epilepsy.
We’re also talking about two greatly
gifted people, of course. Also about two
drunks, constant smokers, spouse-
dumpers and pill-takers, reckless with
their health and, often, with their ca-
reers; with Richard — who at one point
could put away three bottles of vodka a
day — dead in his 50s.
I feel lucky to have crossed paths
with them. She was wonderful and he
was wonderful.
To envy them you have to be nuts.
DICK CAVETT is a former television talk-
show host.
But whenever the United States was
mentioned, the reaction was dismissive.
A sense of disappointment in America
was prevailing. Washington’s long his-
tory of support for Arab dictators and its
hypocritical claims of being an ‘‘honest
peace broker’’ have now rendered the
U.S. irrelevant in the eyes of many.
MOHSEN MOUSTAFA, DOHA, QATAR

Lucknow,
ways a realist onto whom idealism was ing virtuous from the sky. I think curity adviser, Denis McDonough, is
thrust. He adheres, by instinct and ex- Obama has met, with bombs, that initial also from Stillwater. That’s a coinci-
perience, to the middle ground. Taking standard; and done so with a strong dence, but a link exists: The United

a Royal Court in India

office in a nation drained by war, he United Nations mandate reflecting his States is strongest when it aligns its val-
found arguments aplenty to bolster his diplomacy of repair these past years. ues and interests and is not itself when
inclination for ending conflicts. (The U.N., as its former Secretary Gen- it turns its back on the meaning of

XVIIIth –XIXth century

American exceptionalism — the no-
tion of the United States as a transfor-
mative moral beacon to the world —
made him uneasy. Atlanticism, the fruit
of the war that took Lund’s life, had
little emotional hold on a man not yet 30
when the Cold War ended. The disap-
eral Dag Hammarskjöld noted, ‘‘Was
not created to take mankind to heaven,
but to save humanity from hell.’’)
But now what? There was an Allied
offensive during the North African
campaign called ‘‘Operation Brevity.’’
It had mixed results, but I’d borrow the
Lund’s sacrifice. Americans understand
that. Which is why the moral imperative
is not only indivisible from the Ameri-
can idea, it’s indivisible from re-election.
You can follow Roger Cohen on Twitter at
twitter.com/nytimescohen.

Democracy is messy M ARQUARDT & M ARQUARDT

lamic extremist groups that lose steam
when the more moderate Muslim
Brotherhood joins the system.
‘‘There is a determined effort to stop
the revolution in its tracks,’’ notes Prof.
Khaled Fahmy of the American Univer-
sity in Cairo. That’s disappointing for
Nicholas D. democracy activists like him, but reas-
suring to those who fear upheaval.
Kristof Based on my third trip to Cairo since
the protests began, here’s my guess as
to how events unfold:
him of illicit sexual activity and cutting
off his ear. Beyond Influence
Order is breaking down somewhat.
When Egyptians celebrated Interna-
tional Women’s Day on March 8, gangs
of men harassed them. When Mohamed
ElBaradei, the Nobel Peace Prize-win-
presents
ner who is running for president, tried
to vote in a recent referendum, a mob
attacked him. When foreign reporters
show up to cover news that might por- A special edition of
tray Egypt in a bad light, angry mobs

CAIRO Egypt is a mess.

Nearly two months after street
protests inspired a democratic revolu-
tion, the transitional military-backed
government has proposed — you
guessed it — a law banning protests.
That’s partly because everybody is
protesting, even the police. The cops
want more money, perhaps because
their diminished authority means that
they can now extract less in bribes.
With the police out of commission,
the army uses thugs to intimidate its
critics. And, when it really gets irrit-
ated, it arrests and tortures democracy
activists. As I wrote in my previous
column, it has even tried to humiliate
female activists by subjecting them to
forced ‘‘virginity exams.’’
The Muslim Brotherhood, once
banned, has been brought into the
power structure. Instead of denouncing
the system, it is becoming part of it —
and some of its activists are rampaging
around Cairo University.
Yet for Americans, what is unfolding
is perhaps a reassuring mess. Western-
ers have mostly worried that Egypt
might plunge into Iran-style Islamic
fundamentalism — and, to me, that
seems a reflection of our own hobgob-
lins more than Egypt’s. Indeed, it
seems increasingly likely that Egypt
won’t change as much as many had ex-
pected. Moreover, the biggest losers of
the revolution are likely to be violent Is-
• Post-revolution Egypt will look a lot
like pre-revolution Egypt, but modestly
less repressive and with a more power-
ful civil society. The army will continue
to run the show and ensure continuity.
• People will continue to be tortured,
but will complain about it more. Peace
with Israel will continue, but Egyptian
officials will speak up more forcefully
about suffering in Gaza.
• The best bet for the next president is
Amr Moussa. He’s a former foreign
minister who has led the Arab League:
a veteran politician and pragmatist
who would constitute a breath of fresh
air but not a gust of it.
• Islamists will play a greater role in so-
ciety and government, as they do in
Turkey. But this will also mean that
they are trying to build things rather
than blow them up.
Islamic groups are certainly more ac-
tive than before. Mohammed Alaiwa, a
professor of literary criticism at Cairo
University, told me that he was in a
dean’s office recently when a Muslim
Brotherhood student burst in, pulled
out a pistol and threatened to shoot the
dean unless he resigned then and there
(the student eventually backed down).
Professor Alaiwa said that he now fears
the Muslim Brotherhood students.
Meanwhile, the up-and-comer Islam-
ists are Salafis, who think the Muslim
Brotherhood is far too moderate. A
group of Salafis recently attacked a
Coptic Christian, apparently accusing
sometimes chase them away. Fortu-
nately, terrified reporters have so far
proved to be swifter runners than
Egyptian xenophobes.
The Atlantic Dinners
Yet we have to be realistic: Roads to
democracy are always bumpy — and,
frankly, I feel pretty good about Egypt.
Despite some excesses, the Muslim In partnership with the Guimet Museum
Brotherhood has been tamed by being
brought into the system. It says it won’t Paris, April 5th, 2011
field a candidate for president and will
contest only a bit more than one-third
of parliamentary seats. Its Web site With the participation of the writers
suggests that its aim is ‘‘a civil state’’
rather than ‘‘a religious state,’’ and it Kenizé Mourad and Anand Giridharadas
emphasizes the importance of respect
for the Christian minority.
The big loser from the Muslim Broth-
erhood’s rise is probably its enemy, Al
Qaeda, which wasn’t a part of the de-
mocracy protests and always argued
that the only path to change was vio-
lence. Partners:
All in all, Egypt today reminds me of
other countries in transitions to democ-
racy — Spain after Franco, South Korea
in 1987, Romania or Ukraine in the 1990s,
and, most of all, of Indonesia after the
ouster of its dictator in 1998. Indonesia
was dodgy for a while — I once en-
countered Javanese mobs beheading
people — but it settled down, the extrem-
ist threat diminished, and Indonesia is
now a stable (if unfinished) democracy.
So, yes, Egypt is messy. A young de-
mocracy almost always is. Let’s get To become partner of the event please contact us at info@themarquardt.com or by phone at + 33 1 53 30 53 30
used to it.
Victory123
....
8 | FRIDAY, APRIL 1, 2011 INTERNATIONAL HERALD TRIBUNE

world news disaster in japan

No swift progress as radiation remains high Youth find

meaning in
TOKYO is providing technical advice and tons of

country’s
material as the authorities grapple with
BY DAVID JOLLY the biggest nuclear incident since
AND MATTHEW L. WALD Chernobyl in 1986. On Thursday the

Workers made more incremental pro-
gress at the stricken Fukushima nucle-
ar plant Thursday, but troublesomely
high radiation readings at the plant, as
well as kilometers away, reinforced
fears that the disaster was far from end-
ing.
The crisis continued to add to Japan’s
difficulties as it struggled to cope with
widespread death, destruction and dis-
placement from the earthquake and
tsunami that battered its northeastern
coast three weeks ago and left the
Fukushima plant crippled. The death
toll rose to 11,417 on Thursday, with an-
other 16,273 people listed as missing,
and hundreds of thousands have been
displaced, including tens of thousands
from the area around the nuclear plant.
The economic toll — including the dam-
age to exports and international trade
— defies a full reckoning.
Workers have been dousing reactors
and spent-fuel pools at the plant with
water to prevent full meltdowns while
they frantically try to restore power and
restart the cooling systems, but the re-
sulting floods of dangerously contami-
nated water have complicated their ef-
forts.
On Thursday, workers prepared more
tanks for transferring the water from
turbine buildings at Reactor Nos. 1, 2
and 3 in a quest to keep the radioactive
water from flooding into the ocean.
But readings taken in the sea near the
plant showed that levels of radioactive
iodine 131 had risen for another day,
testing at 4,385 times the statutory limit,
according to Hidehiko Nishiyama,
deputy director general of the Nuclear
and Industrial Safety Agency.
The rise increases the likelihood that
contaminants from the plant are con-
tinuously leaking into the sea, he said.
On Wednesday the water tested at 3,355
times the safety standard for the iso-
tope, up from the reading on Sunday of
1,150 times the maximum level.
The same isotope was detected at
levels 10,000 times the safety limit at Re-
actor No. 1, Bloomberg News reported,
citing a report by the plant’s operator,
the Tokyo Electric Power Company.
Sakae Muto, a Tokyo Electric vice
president, said the company was con-
tracting with Japanese companies to
build a range of facilities for handling
the contaminated water.
An infant born 50 kilometers from the crippled nuclear reactor was tested for radiation contamination in Koriyama, Japan, on Thursday.
Levels of radioactive
iodine 131 rose for another day.
A new focus of concern stems from
readings of a long-lasting radioactive
element at levels that pose a long-term
danger at one spot 40 kilometers, or 25
miles, from the Fukushima plant, rais-
ing questions about whether the evacu-
ation zone should be expanded, and
even whether the land might need to be
abandoned.
Residents within 20 kilometers of the
plant have already been ordered to
evacuate, and those up to 30 kilometers
away have been encouraged to leave.
The isotope cesium 137 was measured
in one village by the International
Atomic Energy Agency at a level ex-
ceeding the standard that the Soviet Un-
ion used as a gauge to recommend
abandoning land surrounding the
Chernobyl reactor, and at another loca-
tion not precisely identified by the
agency.
Using a measure of radioactivity
called the becquerel, the tests found as
much as 3.7 million becquerels per
square meter; the standard used at
Chernobyl was 1.48 million.
In contrast to iodine 131, which decays
rapidly, cesium 137 persists in the envir-
onment for centuries. The reported
measurements would not be high
enough to cause acute radiation illness,
but far exceed standards for the general
public designed to cut the risks of can-
cer.
The Japanese authorities and the
anti-nuclear environmental group
Greenpeace have reported similar read-
ings from the area; Greenpeace and
some other groups are pressing for the
affected area to be evacuated.
Yukio Edano, the chief cabinet secre-
tary, said Thursday that officials were
studying the contamination levels, but
that there were currently no plans to ex-
pand the evacuation zone.
Tokyo Electric, an enormous and in-
fluential company that supplies a third
KIM KYUNG-HOON/REUTERS
of Japan’s power, faces billions of dol-
lars in losses and liabilities from the dis-
aster. It has confirmed that Reactor
Nos. 1, 2, 3 and 4 will have to be
scrapped, and Prime Minister Naoto
Kan was quoted Thursday as saying
that Reactor Nos. 5 and 6 should also be
decommissioned. Those two were far
less damaged since they were already
offline when the disaster struck.
Moody’s Investors Service, the rat-
ings agency, on Thursday cut its credit
rating on Tokyo Electric debt to Baa1
from A1, saying that the expectation of
government support justified leaving
the debt rating above junk levels. The
company’s shares have declined nearly
80 percent since the quake.
President Barack Obama, in a letter
to Emperor Akihito sent March 24 but
disclosed only Thursday, conveyed ‘‘the
deep sympathy felt by all Americans for
the suffering of the people of Japan,’’
and added that ‘‘our prayers are with
you in this time of grief.’’
France, along with the United States,
French president, Nicolas Sarkozy, be-
came the first world leader to visit Ja-
pan since the earthquake and the ensu-
ing disasters.
Prime Minister Kan, appearing in a
somber suit instead of the blue work
uniform in which he has usually ap-
peared since the quake, thanked Mr.
Sarkozy for visiting, saying, ‘‘A friend
who visits on a rainy day is truly a
friend.’’
The two leaders pledged to
strengthen international standards on
nuclear safety.
‘‘We have to thoroughly investigate
the incident to understand how it oc-
curred,’’ Mr. Kan said. ‘‘We want to
make nuclear power safer.’’
Mr. Sarkozy, whose country gener-
ates about 80 percent of its electricity
from nuclear power, arrived in Tokyo
for a one-day visit after attending a
Group of 20 function in Nanjing, China.
He said he wanted to work in his capa-
city as the current G-20 head to help the
international community agree on bet-
ter guidelines.
‘‘Japan is not alone,’’ Mr. Sarkozy
said. ‘‘In the face of this calamity, all of
the G-20 nations wish to aid Japan.
France, as current leader of the group,
wants to express our solidarity.’’
But both countries are seeing domes-
tic support for nuclear expansion
waver.
Earlier Thursday, the Kyodo news
agency cited a Japanese Communist
Party official, Kazuo Shii, as saying that
Mr. Kan had agreed that the country
should completely reconsider its plan to
build 14 new nuclear plants by 2030.
Asked by reporters about Japan’s nucle-
ar future, Mr. Kan evaded the question.
Kyodo also reported Thursday that
the bodies of hundreds of people killed
by the quake and tsunami lay uncollec-
ted in the area near the plant because
they were contaminated by radiation,
leaving the police and morgue workers
unable to safely handle them.
The authorities are considering the
use of mobile decontamination units to
clean the bodies on the spot, Kyodo re-
ported.
Matthew L. Wald reported from Wash-
ington. Ken Iichi, Ayasa Aizawa and
Moshe Komata contributed reporting
from Tokyo, and Kevin Drew from Hong
Kong.
triple crises
JAPAN, FROM PAGE 1
‘‘So many houses are shattered, I will
feel good helping out,’’ he said.
Surprising many of the elders who
wrote them off as too coddled to live up
to traditional Japanese values of self-
sacrifice and hard work, many young
people have found meaning in the crisis.
Even before the earthquake, this gener-
ation was already struggling with a
sense of thwarted opportunities in a
stagnant economy. With the erosion of
the postwar compact that traded a slav-
ish devotion to work for stable wages
and benefits, many young people felt
alienated and adrift.
Now, nonprofit groups are being
flooded with young volunteers. Stu-
dents have taken to the streets to collect
donations for those in need. Blogs and
social networking sites are full of com-
ments from young people asking what
they can do to help. Some students are
even turning down full-time job offers.
‘‘Before the earthquake, I thought
about myself and what I can do for my
new company,’’ said Miki Kamiyama,
who just graduated from Meiji Universi-
ty and will start working at a small cable
company in Yokohama on Friday. ‘‘But
now I think what I can do for all of soci-
ety.’’
In the spirit of the times, companies in
Tokyo and elsewhere in Japan have can-
celed the yearly ceremonies where ex-
ecutives greet new workers on their
first day on the job. Moments of silence
are now the norm. Late-night drinking
sessions with superiors that mix bond-
ing and hazing are being shunned. Of-
fice cherry blossom parties, usually ac-
companied by drinking bouts, have
been canceled.
But none of this austerity will ease the
anxiety of some of the new hires at
Tokyo Electric Power Co., or Tepco,
which owns the disabled nuclear power
plants in Fukushima. Once one of Ja-
pan’s most prestigious companies,
Tokyo Electric has become the target of
anger and contempt, and some people
are openly wondering if it will need gov-
ernment aid.
Tokyo Electric is so consumed with
shutting down its reactors in Fukushi-
ma that is unlikely to have many free
workers to train the 1,100 or so people
who start work this week, and many
new construction projects have been

U.S. book about Gandhi

put off. Still, some new hires sense an
opportunity to fix a broken company.
‘‘In a way, I feel fortunate that I will be

provokes outrage in India

on the front line to help the people and

Sweeney
KOCHI, INDIA not spend much time studying him. And
many of his ideas, like the development
of small-scale village industries, have
Japan’s society,’’ said one new entrant
who asked that his name not be used so
as not to alienate his employer. ‘‘I feel
that people who work for companies like
Tepco want to help in some way.’’
In time, of course, life will return to

Todd
BY VIKAS BAJAJ
AND JULIE BOSMAN
Le diabolique Barbier
Mahatma Gandhi is still so revered in In-
de Fleet Street dia that a book about him that few Indi-
Comédie Musicale ans have read and that has not even been
published here has been banned in one
state and may yet be banned nationwide.
The problem, say critics who have
fanned the flames of popular outrage
this week, is that the book suggests that
the father of modern India was bisexual.
The book’s author, Joseph Lelyveld,
does write extensively about the close re-
lationship Gandhi had with a German ar-
chitect but denies that the book, ‘‘Great
Soul: Mahatma Gandhi and His Struggle
With India,’’ makes any such argument.
During an interview, Mr. Lelyveld, a
former executive editor of The New
York Times, of which the International
Herald Tribune is the global edition,
said he thought that he had ‘‘treaded
very carefully’’ with the information,
which he knew was delicate.
‘‘I lived in India and there’s an Indian
word called tamasha,’’ he said, which
translates to ‘‘spectacle.’’
‘‘I’m surprised to find myself at the
center of one, because I think this is a
careful book,’’ he said, ‘‘and I consider
myself a friend of India.’’
Still, this week, Gujarat State, where
Gandhi was born and grew up, banned
the book after reviews and news articles
about it appeared in Indian newspa-
pers. Gujarat is a particularly conserva-
tive state — alcohol cannot be sold in the
state, for instance — and the state is
governed by a Hindu nationalist party.
‘‘The writing is perverse in nature,’’
Narendra Modi, the chief minister of
Gujarat, said after the ban. ‘‘It has hurt
the sentiments of those with capacity
for sane and logical thinking.’’
On Tuesday, India’s law and justice
minister, M. Veerappa Moily, said that
Un thriller Musique et lyrics
faded almost completely.
The controversy also highlights In-
dia’s highly circumscribed right to free
speech. Under Indian law, any citizen
can petition to have a work banned, and
activists and political leaders have fre-
quently exercised that right.
Certain subjects, like Mohandas
Karamchand Gandhi, who is often re-
ferred to as mahatma, or great soul, are
particularly guarded. Gandhi is widely
admired not only in India but also
around the world for his advocacy of
nonviolent struggle and the austere and
celibate life he led when he was fighting
for India’s freedom from the British.
Using documents, letters and other
research, Mr. Lelyveld writes about
how Gandhi came to his particular so-
cial vision, first as a lawyer in South
Africa and later as a freedom fighter,
and how he tried to spread that vision in
India, with mixed results.
The controversy appears to have star-
ted because of reviews in publications in
the United States and Britain, including
one in The Wall Street Journal asserting
that the book provides evidence that
Gandhi was ‘‘a sexual weirdo, a political
incompetent and a fanatical faddist.’’
That review, by Andrew Roberts, a
British historian, argued that Gandhi
was in love with Hermann Kallenbach, a
German-Jewish architect with whom
Gandhi lived in Johannesburg, and it
cited letters from Gandhi to Mr. Kallen-
bach, which are quoted in ‘‘Great Soul.’’
Gandhi expresses fondness and
yearning for Mr. Kallenbach in the let-
ters, telling him that his was the only por-
trait on Gandhi’s mantelpiece, opposite
the bed, and that cotton wool and Vasel-
ine were ‘‘a constant reminder’’ of him.
The letters were acquired by the Na-
tional Archives of India in an auction
and have been available to scholars;
normal, even at companies like Tokyo
Electric. The deeper question is wheth-
er the traumatic events this month will
reorient people’s lives in any lasting
way. In a country where changing jobs
invites suspicion and moving to a new
home is prohibitively expensive, it is un-
reasonable to think that many young
adults will change their lifestyles in any
substantial way.
‘‘It’s premature to say what the im-
pact of the earthquake and tsunami will
‘‘In a way, I feel fortunate that
I will be on the front line to
help the people and Japan’s
society.’’
be,’’ said Hiroshi Sakurai, who teaches
sociology at the School of International
Liberal Studies at Waseda University.
‘‘Japanese have gotten used to these
things.’’
The personal transformations are
more subtle outside Iwate, Miyagi and
Fukushima, the three prefectures that
have suffered the most. Without any ob-
vious damage to fix, young people are
instead grappling with a silent threat
from airborne radioactive particles, as
well as rolling blackouts that have
forced Japanese to do without many of
the electronic gadgets that were their
constant companions.
Still, young people are making con-
nections and doing what they can. Shota
Kitanishi, a student at Kwansei Gakuin
University in Nishinomiya, near Kobe,
was 4 years old when the earthquake of
1995 destroyed parts of that city. He
grew up watching the city being rebuilt.
In solidarity, he is asking other stu-
dents to make a monthly pledge of
¥1,000, or about $12, for a year and to

Stephen
Basé sur la pièce de
Christopher Bond
Direction
David Charles Abell ‘‘the book denigrates the national pride
and leadership,’’ which he said could not
they were sold by descendants of Mr.
Kallenbach. Gandhi destroyed Mr. Kal-
send the money to groups helping vic-
tims in northeastern Japan.
musical ! Sondheim
Livret
Mis en scène
originellement
Mise en scène
Lee Blakeley
be tolerated. He said officials ‘‘will con-
sider prohibiting the book.’’
lenbach’s letters to him early on, ac-
cording to the book.
‘‘You just can’t think of the disaster as
someone else’s disaster,’’ he said.
à Broadway par
The crux of the controversy seems to The situation is complicated by the ‘‘We’re all Japanese. When you get to-
Hugh Harold Prince Ensemble Orchestral
be the intersection of two subjects on fact that the book is not yet available for gether, you feel like you can do any-
Wheeler Orchestrations de
de Paris /
Orchestre Pasdeloup which Indians have strong views: sexu- sale in India, and very few people have thing.’’
Jonathan Tunick ality and Gandhi. seen or read it.
du 22 avril Nouvelle production On the first point, India is quite con- In the interview, Mr. Lelyveld said the Hiroko Tabuchi, Ken Ijichi and Moshe
au 21 mai 2011 Création en France En anglais, surtitré servative, although there has been information about Gandhi’s relation- Komata contributed reporting.
change in recent years with the coun- ship with Mr. Kallenbach was not his
try’s fast growth and young people own discovery, and was never intended CORRECTION
T. 01 40 28 28 40 | www.chatelet-theatre.com moving out on their own in greater num- to be the main point of his book.
FNAC : 0 892 68 36 22 (0,34 €/mn) | www.fnac.com
• An article Monday about the extent to
bers. In 2009, the high court in Delhi ‘‘All I can claim is that I dealt with that which cellphone companies track and
struck down a British-era law against material more extensively with an eye to save customer location data misstated
sodomy. The ruling was seen as a water- the general public than anyone previ- the relationship between AT&T and
shed for gay rights. Nevertheless, most ously,’’ he said. ‘‘But it’s not a central pre- Sense Networks, which makes applica-
Indians who are gay would not feel com- occupation. My book is about Gandhi’s tions that serve ads to cellphone users
Direct Matin fortable coming out. struggle for social justice, not his inti- based on their location. Sense Networks
On the second point, Gandhi is mate relationships. But he was a compli- uses data from AT&T; the companies do
revered even by the young, but they do cated man and the two are linked.’’ not work together.
Victory123
....
THE GLOBAL EDITION OF THE NEW YORK TIMES FRIDAY, APRIL 1, 2011 | 9

Culture
art music

Chinese master, modern brush

HONG KONG

Zao Wou-ki’s works

are increasingly sought
by collectors and galleries
BY JOYCE HOR-CHUNG LAU

As Chinese collectors continue to buy

back their heritage, attention has
turned to Zao Wou-ki, a 20th-century
master who has lived in France since
fleeing China the year before Mao’s 1949
revolution.
Part of the interest is driven by the
rarity of Mr. Zao’s works. Now 90, he has
long stopped producing new pieces, and
most of his best paintings were pur-
chased decades ago by Western collect-
ors who have been loath to part with
them.
Pascal de Sarthe, who has been deal-
ing in Zao works for about 15 years, had
to ask longtime clients for loans to
cobble together 10 Zao paintings for the
debut of his new gallery, de Sarthe Fine
Art, in Hong Kong last month. The night
before the opening, only three were left
unsold.
‘‘It’s nearly impossible for a gallery to
put together a show like this,’’ said Mr.
de Sarthe, a French-born dealer who
was based in the United States before
his recent move to Asia. ‘‘Demand is
very strong. Once collectors have them,
they keep them.’’ The show, ‘‘Zao Wou-
ki Paintings: 1950s-1960s,’’ will be on
view at the gallery through April 29.
More Zao works will be showcased at
Sotheby’s spring sale in Hong Kong on
April 4. Originally, the auction house was
offering five paintings from what is re-
ferred to as Mr. Zao’s ‘‘Paul Klee peri-
od,’’ between 1950 and 1955, when Mr.
Zao was greatly influenced by the works
of the Swiss-German artist Paul Klee.
The paintings have been in the hands of
a private American collection for a half-
century. Sotheby’s recently announced
that it had increased the offering to 13,
including oils, ink-and-watercolor works
and a lithograph print from European
and Asian collections, as well as from the
Redfern Gallery in London.
‘‘He’s the only Chinese artist whose
name you will find in books about West-
ern modern art,’’ said David Clarke, a
professor at the University of Hong IMAGES FROM SOTHEBY’S, HONG KONG; ARCHIVES ZAO WOU-KI, PARIS (PHOTOGRAPH OF ARTIST)

Kong’s department of fine arts. ‘‘He was

one of the most significant figures in
post-1945 European abstraction. Zao
Wou-ki played a greater part in Western
artistic modernism than any other
Chinese artist.’’
Mr. Zao’s combination of Western ab-
straction and Chinese elements, like calli-
graphic brush strokes, was unusual dur-
ing that era. ‘‘Western artists of that time
were looking to East Asian art and philo-
sophy for inspiration, but Zao was able to
draw on it more directly because of his
cultural heritage,’’ Prof. Clarke said.
‘‘Artists in mainland China at that time
could not even begin to experiment with
international modernist styles, of course,
but in Paris he was well-placed to do so.’’
The de Sarthe show tracks Mr. Zao’s
evolution through the 1950s and ’60s.
Two of the earlier pieces, ‘‘Bateaux au
Port’’ (1952) and ‘‘Corrida’’ (1953), are
still clearly figurative, showing the
sketched outlines of sailing ships and
bullfighting. These are also from Mr.
Zao’s ‘‘Klee period.’’
Mr. de Sarthe has one of four known
surviving paintings that Mr. Zao cre-
ated on his 1958 trip to Hong Kong, then
a British colony, marking his first return
to a Chinese city since his departure in
1948. He did not set foot in mainland
China until 1972. The untitled canvas is
covered in thick layers of red, from
bright poppy shades to deep crimson.
There are rough black marks that look
like the primitive ideograms that would
later form Chinese characters, though
they are far from actual words. In the
background, one might see the vague
outline of the Middle Kingdom.
Most of the pieces offered by Sothe-
by’s are also from the earlier part of Mr.
Zao’s life.
Sylvie Chen, Sotheby’s senior director
of 20th-century Chinese art, picked out
‘‘Nu et Tapis Jaune’’ (1953) as an ex-
ample. According to Ms. Chen, who was
speaking from Taipei during a traveling
preview exhibition of Mr. Zao’s works
there, the oil of a nude woman standing
against a yellow carpet recalls a more
realistic style he used when he was based
in Hangzhou, before he left for France.
‘‘He revisited portraiture in his early
years in Paris,’’ she said. ‘‘It is a very
rare offering and it is the first time a
work such as this has been seen at auc-
tion.’’ It is estimated at 2 million to 3.1
million Hong Kong dollars, or about
$250,000 to $400,000.
Ms. Chen added that many of the
sketches and smaller works that Mr. Zao
created in China were later destroyed
during the political turmoil of the 1960s,
making earlier pieces scarcer still.
Other top-priced works include ab-
stract landscapes: The shimmering, ver-
tical ‘‘Pins Landais’’ (1955), inspired by
the pines of the Landes region in south-
west France, is estimated at 3.2 million to
4 million Hong Kong dollars. The au-
tumn-hued ‘‘4.1.62’’ (1962) is the most ex-
pensive work on offer, estimated at 4 mil-
lion to 6 million Hong Kong dollars.
According to Ms. Chen, Mr. Zao’s
works only came onto the auction mar-
ket in the 1990s, with more pieces be-
coming available around 2003.
‘‘Zao’s early exhibitions were held in
Europe and America, therefore the ma-
jority of his earlier works were bought
Zao Wou-ki’s
‘‘4.1.62’’ (1962),
above, and ‘‘Nu et
Tapis Jaune’’
(1953), detail
shown at far right,
are among 13
works by the artist
that will go on sale
at Sotheby’s in
Hong Kong on
April 4. The artist,
seen at right in
Paris in 1958, fled
to France a year
before Mao’s 1949
revolution and is
one of the few 20th-
century Chinese
artists recognized
in the West.
‘‘Zao played a greater part in
Western artistic modernism
than any other Chinese artist.’’
Paris have opened galleries. But de
Sarthe is the first to open with a signifi-
cant show by an Asian artist.
Mr. de Sarthe, whose next show will
feature the glossy pop photography of
David LaChapelle, said he did not dis-
by collectors there,’’ she said. ‘‘Asian seem more interested in the post-1970 The de Sarthe gallery joins a parade tinguish between Western and Eastern
buyers began to take an interest in the period,’’ Ms. Chen said. of new foreign-run galleries in Hong artists. His goal, he said, was to bring
1990s.’’ Last year, all 17 of the Zao works Kong’s Central district that specialize in top-end works that would otherwise be
‘‘Generally speaking, collectors from offered during Christie’s spring sales blue-chip modern and contemporary hard to find in Hong Kong.
Europe, America and Asia are more in- surpassed the auction house’s esti- artists. In the last year and a half, Ben ‘‘He was never prolific,’’ Mr. de Sarthe
terested in his pre-1970 work, whereas mates, fetching a total of 323.3 million Brown of London, Larry Gagosian of said of Mr. Zao. ‘‘There may be more Pi-
newly emerging collectors from China Hong Kong dollars. New York and Edouard Malingue of cassos in the market than Zaos.’’

Clyde who? You’ve heard his drums, but not his name
The man behind
the most sampled beats
hasn’t had much credit
BY BEN SISARIO
Aside from those of musicians, record
collectors and D.J.’s, not many ears perk
up at the mention of Clyde Stubblefield.
But no matter who you are, you prob-
ably know his drumming.
If you’ve heard Public Enemy’s
‘‘Bring the Noise’’ or ‘‘Fight the
Power,’’ you know his drumming. If
you’ve heard LL Cool J’s ‘‘Mama Said
Knock You Out,’’ or any number of
songs by Prince, the Beastie Boys,
N.W.A., Run-D.M.C., Sinead O’Connor
or even Kenny G., you definitely know
his drumming, even though Mr.
Stubblefield wasn’t in the studio for the
recording of any of them.
That is because he was the featured
player on ‘‘Funky Drummer,’’ a 1970
single by James Brown whose 20-
BENJAMIN FRANZEN second drum solo has become, by most
Clyde Stubblefield, who played with James Brown in the late 1960s, performing last year. counts, the most sampled of all beats. It
has been used hundreds of times, be-
coming part of hip-hop’s DNA, and in the
late 1980s and early ’90s it was the go-to
sample for anyone looking to borrow
some of hip-hop’s sass, hence Kenny G.
But Mr. Stubblefield’s name almost fell
through the cracks of history. The early
rappers almost never gave credit or paid
for the sample, and if they did, acknow-
ledgement, and any royalties, went to
Brown, who is listed as the songwriter.
‘‘All my life I’ve been wondering about
my money,’’ Mr. Stubblefield, now 67 and
still drumming, said with a chuckle.
A new project tries to capture at least
some royalties for him. Mr. Stubblefield
was interviewed for ‘‘Copyright Crimin-
als,’’ a documentary by Benjamin Fran-
zen and Kembrew McLeod about the
gray areas of music copyright law, and
for a special ‘‘Funky Drummer Edition’’
DVD of the film that was released Tues-
day, Mr. Stubblefield recorded a set of
ready-to-sample beats. By filling out a
basic licensing form, anyone willing to
pay royalties of 15 percent on any com-
mercial sales — and give credit — can
borrow the sound of one of the archi-
tects of modern percussion.
‘‘There have been faster, and there
have been stronger, but Clyde Stubble-
field has a marksman’s left hand unlike
any drummer in the 20th century,’’ said
Ahmir Thompson, aka Questlove of the
Roots. ‘‘It is he who defined funk music.’’
Born in Chattanooga, Tennessee, Mr.
Stubblefield was first inspired by the in-
dustrial rhythms of the factories and
trains around him, and he got his start
playing with regional bands. In 1965,
The ‘‘Funky Drummer’’ solo
is part of hip-hop’s DNA.
James Brown saw him at a club in Ma-
con, Georgia, and hired him on the spot.
Through 1971, Mr. Stubblefield was one
of Brown’s principal drummers, and on
songs like ‘‘Cold Sweat’’ and ‘‘Mother
Popcorn’’ he perfected a light-touch
style filled with the off-kilter syncopa-
tions sometimes called ghost notes.
Mr. Thompson said Mr. Stubblefield’s
‘‘softest notes defined a generation.’’
‘‘We just played what we wanted to
play on a song,’’ Mr. Stubblefield said in
a telephone interview last week, refer-
ring to himself and his fellow Brown
drummer, John Starks, better known as
Jabo. (Brown died in 2006.) ‘‘We just put
down what we think it should be.
Nobody directs me.’’
You might expect Mr. Stubblefield,
who has appeared on some of the
greatest drum recordings in history, to
have gone on to fame, or at least to a lu-
crative career playing sessions. But for
40 years he has happily remained in
Madison, Wisconsin, playing gigs there
with his own group and, since the early
1990s, playing on the public radio show
‘‘Michael Feldman’s Whad’Ya Know?’’
Alan Leeds, whose time as Brown’s
tour director overlapped with Mr.
Stubblefield’s time in the band, remem-
bers him as a gifted but not terribly am-
bitious musician. ‘‘He was a fun guy,’’
Mr. Leeds said. ‘‘But if one guy was go-
ing to be late for the sound check, it was
Clyde.’’
The technology and conventions of
sampling — isolating a musical snippet
from one recording and reusing it for
another — also kept him from greater
recognition. ‘‘Funky Drummer’’ didn’t
STUBBLEFIELD, PAGE 10
Victory123
10 | FRIDAY, APRIL 1, 2011
A literary relic is not gone after all
SOUTHPORT, CONNECTICUT
A piece of ‘Gone With
the Wind’ resurfaces,
famed lines neatly typed
BY CHARLES MCGRATH
Long thought to have been burned the
way the North set fire to the cotton at
Tara, the final typescript of the last four
chapters of Margaret Mitchell’s ‘‘Gone
With the Wind’’ has turned up in the
Pequot Library in this Yankee seaport.
If not quite a spoil of war, the manu-
script is a relic of some publishing skir-
mishes, and it will go on exhibit starting
Saturday, before traveling to Atlanta,
Mitchell’s hometown, in time for the
75th anniversary of the novel’s publica-
tion in June.
The chapters, which contain some of
the novel’s most memorable lines —
like, ‘‘My dear, I don’t give a damn’’ and
‘‘After all, tomorrow is another day’’ —
were given to the Pequot in the early
1950s by George Brett Jr., the president
of Macmillan, Mitchell’s publisher, and
a longtime benefactor of the library.
Some pages from the manuscript were
actually displayed at the Pequot twice
before — in a 1979 exhibition of Macmil-
lan first editions, also donated by Brett,
and in 1991 for a show honoring ‘‘Scar-
lett,’’ Alexandra Ripley’s authorized, if
not very good, sequel to ‘‘Gone With the
Wind.’’
But Dan Snydacker, executive direc-
tor of the library, said nobody back then
paid the manuscript much attention or
recognized its importance.
The pages went back into storage and
resurfaced only in response to a query
from Ellen F. Brown, who was working
with her co-author, John Wiley Jr., on
‘‘Margaret Mitchell’s ‘Gone With the
Wind’: A Bestseller’s Odyssey From At-
lanta to Hollywood,’’ published in Febru-
ary by Taylor Trade Publishing. Ms.
Brown was interested in the Brett col-
lection at the Pequot and curious to
know whether any of the library’s many
foreign editions of ‘‘Gone With the
Wind,’’ yet another bequest, had inscrip-
tions from the author to her publisher.
They do, but most, it turns out, are
pretty tepid. For at least part of the time,
the relationship between Mitchell and
Brett was somewhat frosty, and why
Brett had the manuscript in the first
place remains a mystery.
The manuscript itself is remarkably
clean, typed on a Royal portable with
just a few handwritten corrections fix-
ing a typo, adding a word or changing a
‘‘that’’ to a ‘‘which,’’ often incorrectly.
That it is in this condition suggests
something about Mitchell’s perfection-
ist nature and something about the un-
usual way ‘‘Gone With the Wind’’ was
written and published.
Mitchell worked on the novel, which
was originally to be called either ‘‘To-
morrow Is Another Day’’ or ‘‘Tote the
Weary Load,’’ in fits and starts from
1925 to 1935.
She wrote on blank newsprint and
composed the book out of order, begin-
ning with the last chapter and picking
up other sections as her mood suited
her. The finished chapters she put in in-
dividual manila envelopes, sometimes
with grocery lists scrawled on them, and
stored in a closet. Very few people saw
PEOPLE
A 370-year-old painting that belonged
to a Jewish art dealer who fled the Neth-
erlands around the time of the Nazi inva-
sion in 1940 will be returned to his family
by the J. Paul Getty Museum, The Asso-
ciated Press reported. The painting,
‘‘Landscape With Cottage and Figures,’’
done by PIETER MOLIJN around 1640, be-
longed to JACQUES GOUDSTIKKER, a promi-
nent dealer who died while fleeing the
Nazis. His collection was looted, and
some of the art ended up in the hands of
the Nazi leader HERMANN GOERING. The
Getty bought the painting at a 1972 auc-
tion and has never exhibited the work.
JENNIFER ANISTON, GEORGE LUCAS, WILLIE NELSON, CHRISTINA HENDRICKS
JENNIFER ANISTON is making good on
her promise to direct, The Los Angeles
Times reported. Ms. Aniston has been
tapped to participate in a short film proj-
ect with the singer ALICIA KEYS, the act-
ress DEMI MOORE, and the director PATTY
JENKINS. They will each direct a short
film, which will be presented as ‘‘Project
Five,’’ a Lifetime Networks initiative to
spotlight breast cancer.
CHRIS BROWN’s outburst on ‘‘Good
Morning America’’ last Tuesday does not
appear to have lost him album sales. The
singer’s new album, ‘‘F.A.M.E.’’ (Jive),
sold 270,000 copies last week, according
to Nielsen SoundScan, becoming his first
No. 1 on the Billboard album chart.
The ‘‘Star Wars’’ creator GEORGE LUCAS
has predicted that 3-D filmmaking will
them or even knew what she was doing.
In April 1935, however, while on a
scouting trip to Atlanta, Harold Latham,
the editor in chief of Macmillan, some-
how pried the pile of envelopes loose
from Mitchell and sent them to New
York for evaluation. Ms. Brown said the
draft at that point was a mess, with
some chapters missing and duplicate
versions of others, and yet Macmillan
reacted enthusiastically and decided,
with unusual haste, to bring the novel
out the following spring.
From August 1935 to January 1936,
Mitchell, with the help of John Marsh,
her second husband — and best man at
her marriage to the first — and some
hired typists and stenographers, essen-
eventually take over at the movies. At a
digital film panel in Las Vegas this week
with the director JAMES CAMERON and the
head of DreamWorks Animation, JEFFREY
KATZENBERG, Mr. Lucas said: ‘‘Now when
you’re watching a movie and it’s not in 3-
D, it’s like watching in black and white.’’
He added ‘‘I totally believe now that 3-D
will completely take over.’’ (AP)
A Texas judge has rejected the idea
that WILLIE NELSON could sing his way out
of a recent arrest for marijuana posses-
sion. KIT BRAMBLETT, a Hudspeth County
lawyer, had suggested that Mr. Nelson
pay a small fine and sing ‘‘Blue Eyes
Crying in the Rain’’ at the courthouse as
punishment after his arrest at a border
stop in Sierra Blanca, Texas, on Nov. 26.
Judge BECKY DEAN-WALKER said that Mr.
Nelson could plead guilty without going
to court, and added that she believed Mr.
Bramblett had been making a joke.
‘‘Mad Men’’ will not return to televi-
sion until sometime early next year, AMC
confirmed, because of a dispute with the
show’s creator, MATTHEW WEINER. Mr.
Weiner is unhappy with a proposal to
shorten each episode by two minutes (to
add commercial time) and to cut the cast
budget. He said the changes would make
‘‘Mad Men’’ a ‘‘different show.’’ The new
season of the series, which stars JON
HAMM and CHRISTINA HENDRICKS, had been
set for broadcast in July.
PHOTOGRAPHS: REUTERS, GETTY-AFP, AP, AP
tially rewrote and retyped the entire
book, cutting, refining, straightening
out inconsistencies and fixing historical
inaccuracies. Until fairly late in the pro-
cess, the heroine was called Pansy, and
when Mitchell changed the name to
Scarlett, thank goodness, she paid 50
cents an hour to have every page men-
tioning Pansy retyped.
As each chapter was finished, it was
sent off to New York, and that
typescript, with very few alterations,
became the final text of the novel. The
manuscript you would really like to see
is that jumble of newsprint pages
stuffed into envelopes — what Macmil-
lan called ‘‘MS of the Old South’’ — but
most of that was destroyed by
In Egypt, abrupt regime change is an old story
The Rise and Fall of Ancient Egypt. By Toby
Wilkinson. Illustrated. 611 pages. Random
House, $35; Bloomsbury, £30.
BY MICHIKO KAKUTANI
An emotionally fraught transition from
one regime to the next, with no clear-cut
successor to the previous ruler. Worries
about stability and the maintenance of
law and order. Fears about foreign med-
dling and influence. The army at least
BOOK REVIEW
temporarily filling the political vacuum
and overseeing a transition.
This sequence of events — which may
sound familiar to those who followed
the recent overthrow of President
Hosni Mubarak, Egypt’s ruler of nearly
three decades — actually occurred, the
scholar Toby Wilkinson said in a recent
essay in The Wall Street Journal, more
than 3,000 years ago, after the death of
the boy-king King Tutankhamen, when
the army stepped in to maintain order
and act as power broker.
As its title indicates, Mr. Wilkinson’s
new book, ‘‘The Rise and Fall of Ancient
Egypt,’’ is about those long-ago days of
the pharaohs and does not grapple with
developments in that country after the
death of Cleopatra in 30 B.C. But the
volume does shed light on patterns in
Egyptian history and the ways in which
the country’s geography (which made it
susceptible to invasion and attack) and
‘‘the sharp dichotomies of nature in the
Nile Valley’’ (flood and drought, fertile
land and arid desert) amplified what
Mr. Wilkinson sees as a national pro-
clivity to view ‘‘the world as a constant
battle between order and chaos’’ — a
tendency that he says the country’s
leaders often played upon to justify
their domineering, autocratic rule.
Although the book offers far more de-
tail about lesser-known pharaohs and
lesser-known battles than the lay read-
WENDY CARLSON FOR THE NEW YORK TIMES
Mitchell’s husband, following her in-
structions, after her death in 1949.
Mitchell always insisted that books
should be judged by their final versions,
not their drafts, and had grown weary of
people and institutions pestering her for
manuscript pages to be kept as souve-
nirs or put on display.
Marsh also burned, or so it was
thought, most of the final typescript. He
kept back two chapters, 44 and 47,
which, along with some of the earlier
material, are now stored in a vault in At-
lanta, to be opened only if a question
ever arises about the authorship of
‘‘Gone With the Wind.’’
So what was George Brett doing with
the last four chapters? At one point he
Toby Wilkinson says he became more aware of ‘‘the darker side of pharaonic civilization.’’
er could possibly want to know, Mr.
Wilkinson — a fellow of Clare College at
Cambridge University — writes with
considerable verve, and his narrative
provides an acute understanding of
how the Egyptian brand of divine king-
ship evolved over the centuries, how its
pharaohs used their mastery of the ar-
chitectural and decorative arts to glori-
fy themselves (and cement their histor-
ical reputations) and how intertwined
the monarchy’s power became with re-
ligion and the military.
Mr. Wilkinson is nimble at conveying
the sumptuous pageantry and cultural
sophistication of pharaonic Egypt. He
deconstructs the elaborate writings
and funerary iconography, noting that
‘‘the Egyptians were adept at record-
ing things as they wished them to be
seen, not as they actually were,’’ and
that tomb decoration was ‘‘designed,
above all, to reinforce the established
social order,’’ for instance, showing a
tomb’s owner dominating every scene,
towering in size over his family and
workers. In addition, Mr. Wilkinson
provides an intriguing account of how
INTERNATIONAL HERALD TRIBUNE
books music culture
PEQUOT LIBRARY FOR THE NEW YORK TIMES
A page from the final typescript of the last
four chapters of ‘‘Gone With the Wind,’’
by Margaret Mitchell, above. The chapters
are housed at the Pequot Library in South-
port, Connecticut, and are part of an ex-
hibit for the 75th anniversary of the book.
didn’t even know he had them. That was
in 1936, when he wrote to Mitchell ask-
ing if he could have a couple of manu-
script pages to display at The New York
Times Book Fair that year. Mitchell
wrote back, irritated, to say that the
manuscript had never been returned to
her. Abashed, Macmillan found it in a
vault and, insuring it for $1,000, sent it
all back, or so everyone believed until
just recently.
Mr. Snydacker said there were only a
few explanations. Either Brett held onto
part of the manuscript deliberately, or
some of the chapters became separated
— one of the pages, dusty and with a
rusty paperclip mark, looks as if it had
been stored on a windowsill somewhere
— or Mitchell asked him to hold onto the
chapters for safekeeping.
‘‘It’s easy to give him the benefit of
the doubt,’’ said Joan Youngken, the
guest curator of the Pequot exhibit. ‘‘If
he kept it improperly, he wouldn’t be
passing it along to a public library.’’
Ms. Brown said: ‘‘I think those chap-
ters must have been a gift. The story has
always been that Mitchell and Brett
didn’t get along because she felt he
didn’t make a good enough deal for the
movie rights. And it’s true that he
didn’t. There are some angry letters and
there was a period when they weren’t
speaking. But I’ve found plenty of evi-
dence that by the end they had a very
warm relationship.’’
Carefully turning over the pages of
the manuscript last week, Mr. Snydack-
er said: ‘‘I think it’s amazing that we
have this. I love the book even though
it’s inexcusably racist. It wasn’t written
in the 1860s but the 1930s, for God’s sake.
In some ways it’s pretty sympathetic to
the K.K.K. But it’s a great work in spite
of that. It’s a very powerful antiwar
book, among other things. As a Vietnam
vet, that part has always rung true to
me, and I think that’s why it was so pop-
ular in Europe.’’
He added: ‘‘No question, ‘Gone With
the Wind’ is a part of the fabric of Amer-
ican life, and not just the movie, either.
The book still sells something like
250,000 copies a year.’’
ONLINE: MORE ON BOOKS
Reviews, news and features about
books. global.nytimes.com/books
JANE PHILIPPI
archaeologists and historians have
pieced together portraits of ancient
Egypt’s kings, including Narmer, the
first ruler of a united Egypt (whose
reign began around 2950 B.C.) ; the
warrior king Thutmose III, who se-
cured Egypt’s control over the Trans-
jordan; the eccentric Akhenaten, who
declared himself a co-regent with the
sun; and Ramesses II, who ruled for an
astonishing 67 years and would be im-
mortalized in Shelley’s poem ‘‘Ozy-
mandias.’’
After studying ancient Egypt for
more than 20 years, Mr. Wilkinson says
he found himself growing ‘‘increasingly
uneasy about the subject of my re-
search’’ — increasingly aware of ‘‘the
darker side of pharaonic civilization,’’
which has often been glossed over, he
says, by the ‘‘misty-eyed reverence’’
that many scholars have shared with
tourists.
‘‘We marvel at the pyramids,’’ he
writes, ‘‘without stopping to think too
much about the political system that
made them possible. We take vicarious
pleasure in the pharaohs’ military victo-
....
As his beat
goes on,
drummer
wants credit
STUBBLEFIELD, FROM PAGE 9
appear on an album until 1986, when it
was on ‘‘In the Jungle Groove,’’ a Brown
collection that was heavily picked over
by sampler-producers.
The lack of recognition has bothered
Mr. Stubblefield more than the lack of
royalties, he said, though that stings,
too.
‘‘People use my drum patterns on a
lot of these songs,’’ he said. ‘‘They never
gave me credit, never paid me. It didn’t
bug me or disturb me, but I think it’s dis-
respectful not to pay people for what
they use.’’
In 2002 Mr. Stubblefield had a tumor
in his kidney removed, and now he suf-
fers from end-stage renal disease. He
qualifies for Medicare but has no addi-
tional health insurance.
The ‘‘Funky Drummer Edition’’ of
‘‘Copyright Criminals’’ includes Mr.
Stubblefield’s beats both on vinyl and as
electronic files, and in addition to any li-
censing, he also gets a small royalty
from the DVD, said Mr. McLeod, an as-
sociate professor of communications at
the University of Iowa. As in his days
with Brown, Mr. Stubblefield was also
paid a fee for the recording session.
‘‘Breaks’’ albums with ready-made
beats are nothing new in hip-hop. By his
reckoning, Mr. Stubblefield has done
four or five such collections, but not all
of those have paid him royalties either.
‘‘A lot of people should have
gotten a lot of credit from
James Brown, but he only
talked about himself.’’
‘‘They sent us royalty papers, but no
checks,’’ he said of one such album
made for a Japanese company.
For Mr. Stubblefield, lack of credit is
not only an issue with D.J.s and produc-
ers sampling his beats. It was also a
bone of contention with Brown, who was
famous for running a tight ship — he
fined his musicians for missing a beat or
having scuffed shoes — and also for not
giving his musicians more credit.
‘‘A lot of people should have gotten a
lot of credit from James Brown,’’ Mr.
Stubblefield said, ‘‘but he only talked
about himself. He may call your name
on a song or something, but that’s it.’’
That raises the question of whether
Mr. Stubblefield is himself violating any
of Brown’s copyrights by recording
beats in the style of those original re-
cordings in Brown’s band. Mr. McLeod
dismissed the suggestion, saying that
the beats are not identical, and that the
original copyright registration forms
for Brown’s songs mention melody and
lyrics but not rhythm.
And besides, Mr. McLeod added,
what you’re getting is simply a great
drummer doing his thing.
‘‘This differs from buying a sample
pack for GarageBand,’’ he said, referring
to Apple’s home-recording program,
‘‘because you know that what you are
listening to and what you are sampling is
the genius labor of this incredible musi-
cian. It’s Clyde Stubblefield.’’
ries — Thutmose III at the Battle of
Megiddo, Ramesses II at the Battle of
Kadesh — without pausing too long to
reflect on the brutality of warfare in the
ancient world. We thrill at the weirdness
of the heretic king Akhenaten and all his
works, but do not question what it is like
to live under a despotic, fanatical ruler.’’
Arguing that the ancient Egyptians
‘‘invented the concept of the nation-
state that still dominates our planet,’’
Mr. Wilkinson writes that the country’s
earliest kings not only ‘‘formulated and
harnessed’’ traditional tools of leader-
ship — like using ideology and ceremo-
ny to unite a disparate population and
bind it to the state — but also used more
malign instruments like police surveil-
lance, xenophobia and the brutal repres-
sion of dissent to cement their power.
In fact this book draws a sobering
portrait of what daily life was like for
ordinary Egyptians. Foot soldiers (who
actually fought barefoot) were subject
to frequent beatings and had to subsist
on meager rations, which were sup-
posed to be supplemented ‘‘by foraging
and stealing.’’ And peasants, who did
not have access to the doctors and dent-
ists available to the wealthy, suffered
from a range of debilitating diseases
like tuberculosis and parasitical infec-
tions. To make matters worse, high
taxes, the uncertain nature of agricul-
ture in the Nile Valley (either too much
water or too little) and the constant
threat of famine combined to make
daily life feel perennially precarious.
Finally, Mr. Wilkinson says, ‘‘The last
act of Egypt’s great drama was played
out in the streets of Alexandria with a
cast of characters as famous as any:
Caesar, Mark Antony, and Cleopatra.
With her death, in 30, Egypt became a
Roman possession and its 3,000-year-
old pharaonic tradition came to an end.’’
ONLINE: DIVINE KINGSHIP
An excerpt from ‘‘The Rise and Fall of
Ancient Egypt.’’ global.nytimes.com/books
Victory123
....
THE GLOBAL EDITION OF THE NEW YORK TIMES
Sports
Loss ends
a career
marred by
controversy
CRICKET MOHALI, INDIA
REUTERS
A career that began so promisingly 14
years ago, when Shoaib Akhtar refused
to take off his first Pakistan uniform for
three days, ended with disappointment,
with the fast bowler reduced to carrying
drinks for his teammates as they lost to
India in the World Cup semifinals.
The man who was nicknamed the
Rawalpindi Express for his ability to
bowl at high speeds had been hoping for
one last hurrah in the match Wednes-
day. However, Pakistan’s loss brought
one of the most divisive careers in crick-
et to a screeching halt.
For Akhtar, there will be no more highs
from taking wickets or winning matches
for his country, just memories.
‘‘The best moment was when I got the
first kit for the test match and there was
a huge star on my chest,’’ an emotional
Akhtar told reporters after announcing
his decision to quit two weeks ago. ‘‘I
wore that kit and I slept in that kit, and I
just couldn’t believe that I was going to
wake up in that kit. I didn’t take if off for
three days.’’
Akhtar, 35, appeared in 46 tests and
163 one-day internationals during his
decade and a half with his team. He
made his debut in a test match against
West Indies in 1997 and immediately
caught everyone’s attention as the fast-
est bowler of his generation.
Considered by many to be the heir to
the Pakistan greats Imran Khan, Wasim
Akram and Waqar Younis, Akhtar dis-
appointed most with a career blighted
by injuries and controversies stemming
from his indiscipline.
His pace was a threat to many bats-
man, but his statistics failed to reflect
his immense talent. He finished with 178
test wickets and 247 O.D.I. wickets.
Ball-tampering allegations, numer-
ous disciplinary issues — he hit his
teammate Mohammad Asif with a bat in
2007 — doping accusations and injuries
took the focus away from his often dev-
astating bowling.
Even at this World Cup, reports
emerged that Akhtar had angrily kicked
his teammate Kamran Akmal after the
wicketkeeper dropped shots by Ross
Taylor of New Zealand twice within
three deliveries during a group stage
match March 8. Pakistan downplayed
the event, but that match proved to be
Shoaib’s last international appearance.
He was reduced to carrying drinks to
his teammates on the field Wednesday.
Akhtar’s obsession with pace during
his career was often detrimental to the
team’s cause, as he often lost control. His
long run-up often put Pakistan at risk of a
penalty for a slow over rate, and it irked
many of his coaches over the years.
On a number of occasions, he was ac-
cused of putting himself over his team,
and he was portrayed as the problem
child of Pakistan cricket. But at his peak,
the strongly built Akhtar could catch the
imagination of cricket lovers across the
world as he ran in from 35 yards out, his
long hair furling in the wind.
On occasion, amateur sports can spin their special kind of madness
ARENA, FROM PAGE 1
arly structured college basketball com-
petitions that get good attendances and
media coverage in Japan, South Korea,
the Philippines, Canada and Mexico,’’
Andrew Robotham of FIBA, interna-
tional basketball’s governing body,
wrote in an e-mail.
But to examine just one of those ex-
amples, the Canadian Interuniversity
Sport championship in men’s basket-
ball, involves a mere eight teams in a
single site, lasts just a few days and is
not about to rival a Grey Cup or Stanley
Cup for buzz factor.
Meanwhile, south of the border, the
N.C.A.A. men’s tournament now in-
volves the even, yet still odd, number of
68 teams, lasts three weeks at venues
nearly as far-flung as the country itself
The N.C.A.A. tournament is
short enough to not be boring,
‘‘long enough to be fulfilling.
And it’s got a logical ending.’’
and is a national talking (and gambling)
point that cuts across most walks of
peripatetic American life.
‘‘The Super Bowl is this huge winner-
take-all, one-game event, this extraordi-
nary one-night stand,’’ Robert
Thompson, a Syracuse University pro-
fessor of popular culture, told the news-
paper USA Today last year. ‘‘The
N.C.A.A. tournament is more like a
short relationship — short enough to not
be bored, long enough to be fulfilling.
And it’s got a rational, logical ending.’’
That depends on the year, professor,
in this single-elimination tournament.
In 2008, the No. 1 seeds in all four re-
gions reached the Final Four. This year
has not been nearly as rational and lo-
gical as minnows, or at least sardines
Muttiah Muralitharan of Sri Lanka, left, has a unique bowling form because of a deformed arm and double-jointed wrist. Sachin Tendulkar of India holds the scoring record for both five-day tests and one-day internationals.
For 2 legends, a chance at lasting glory
CRICKET
Cup victory could cement
the legacy of Sri Lanka
bowler or India batsman
BY HUW RICHARDS
Cricket’s World Cup final between India
and Sri Lanka on Saturday will produce
the perfect ending for a living legend of
the game.
The question is, which legend?
Ever since the tournament schedule
was released, cricket fans have been
discussing the possibility that India
batsman Sachin Tendulkar will win the
title on his home ground in Mumbai.
That scenario may even have contrib-
uted to the selection of Wankhede Stadi-
um, smaller than three other Indian
tournament venues, with a capacity of
45,000, to hold the final.
‘‘Can you imagine a fairytale ending
with Sachin Tendulkar getting a hun-
dred in the final and India winning at the
Wankhede, which is his home ground?’’
asked Haroon Lorgat, chief executive of
the sport’s governing body, the Interna-
tional Cricket Council.
like Virginia Commonwealth Universi-
ty, have continued to swallow sharks.
For the first time since seedings began
in 1979, there is not a No. 1 or No. 2 seed
to be found in the Final Four, which will
begin Saturday in Houston.
Such shenanigans have done little
good for the average fan’s bracket, but
plenty of good for piquing interest. Tele-
vision ratings for the tournament have
been at their highest since 2005 in a year
when, for the first time, all of the games
were broadcast in their entirety, with
four different channels sharing the
load.
International broadcasters are prolif-
erating, too, with the N.C.A.A. saying
that the number of nations televising
the Final Four grew from 115 in 2004 to
178 last year.
Having traveled in quite a few of those
nations, it is difficult to imagine that
many of their citizens were paying close
attention. Some American diversions
translate well, like the N.B.A. playoffs or
Facebook.
But college sports, with their fast-ro-
tating casts and amateur status, are not
among them, although adding some in-
ternational content doesn’t hurt.
Coverage in France spiked in 2006 and
2007 when Joakim Noah, the New-York-
born son of the tennis star-turned-
chanteur Yannick Noah, was a force of
nature for Florida. Australians took
more interest when Andrew Gaze
helped Seton Hall to the final in 1989 and
took more interest again when towering
Luke Schenscher helped Georgia Tech
into the final in 2004.
‘‘You do feel like a rock star,’’
Schenscher told the Adelaide newspa-
per The Advertiser in February. ‘‘There
were 10,000 screaming fans in the lobby
spilling out onto the streets, and it was
almost impossible to get to the team
bus. They’re singing the school song —
Sri Lankans can imagine an alterna-
tive. Their version features the spin
bowler Muttiah Muralitharan.
‘‘The team is determined to give Mur-
ali — a great team player, a great friend
and a really special man in every sense
— a great farewell by winning the World
Cup once again for him,’’ Sri Lanka’s
opening batsman, Tillakaratne Dilshan,
told the BBC Sinhala Service this week.
Tendulkar and Muralitharan would
both be, if cricket had the same com-
memorative institutions as U.S. sports,
certain first-ballot Hall of Famers. Ten-
dulkar is the all-time leading run scorer
in international cricket, atop the scoring
list in both five-day tests and the one-
day format in which the World Cup is
played. Muralitharan similarly sits atop
the all-time wicket-taking lists.
A World Cup winner’s medal is about
the only honor Tendulkar, who played on
the team beaten by Australia in the 2003
final, still lacks. The perfect conclusion
for his millions of admirers in India and
around the world would be for him also to
mark the occasion by becoming the first
player ever to play 100 innings of scoring
100 or more in international cricket.
He was characteristically low-key
after India beat Pakistan by 29 runs
Wednesday in the semifinal in Mohali,
An evacuee from the recent disaster in Japan watching the national high school baseball tournament at a gymnasium in Yamagata. The event, known as Koshien, features 32 teams.
it was just amazing.’’
So is there anywhere else in the world
where student-athletes (or at least ath-
letes registered as students) can leave a
nation — and just one nation — rapt for
three entire weeks? In Britain, there is
the Boat Race between Oxford and
Cambridge, which has been generating
considerable attention for more than a
century but which lasted less than 18
minutes when Oxford upset Cambridge
on Saturday.
Perhaps the closest equivalent is in
Japan, with its national high school
India. ‘‘Going back to Mumbai, espe-
cially for this event, is a wonderful occa-
sion. All I want to say is we will be fo-
cused on our job and get the job done,’’
Tendulkar said.
Muralitharan already has his win-
ner’s medal, from Sri Lanka’s victory in
1996. But where Tendulkar, a year
younger at 37, may yet add to his stag-
gering list of achievements — he in-
tends to keep playing internationally —
Muralitharan’s international career
ends Saturday. He has already shown a
knack for memorable farewells.
Last year, with his final delivery in
five-day tests, he became the first man
ever to take 800 test wickets. On Tues-
day, as Sri Lanka beat New Zealand in
its semifinals, he took a wicket with his
final ball on home soil.
Each has withstood exceptional pres-
sures. Tendulkar has for 20 years been
the focus for the cricketing passions of a
billion Indians. He may be as ego-free a
superstar as any sport has ever seen, but
like the baseball immortal Joe DiMaggio,
he ‘‘leads the league in room service’’ —
he often can’t do something as simple as
eat breakfast with teammates in a hotel
for fears of the mob scene that would re-
sult from any public appearance.
Muralitharan’s burden has been dif-
baseball tournaments, spring Koshien
and summer Koshien. Baseball is even
more popular in Japan than basketball
is in the United States, and like the
N.C.A.A.’s, the tournaments draw na-
tional television coverage and the occa-
sional controversy over amateur eligib-
ility and spark many a pilgrimage from
students and alumnae. Like the
N.C.A.A.’s, they are also star makers:
future major league baseball luminaries
Hideki Matsui and Daisuke Matsuzaka
both rose to prominence in the more
prestigious summer tournament, and
cricket basketball
ANDREW CABALLERO-REYNOLDS/REUTERS (LEFT); MANAN VATSYAYANA/AGENCE FRANCE-PRESSE (RIGHT)
ferent. He has had to reckon with con-
stant sniping about the legality of a
unique bowling action that results from
a double-jointed wrist and a deformed
arm. Representing a nation torn by eth-
nic conflict during most of his career, he
has usually been the only Tamil on the
team. ‘‘He is an icon of Sri Lanka as a
champion on the field and off the field, as
a human being and as a cricketer,’’ said
Sri Lanka captain Kumar Sangakkara.
No home team has yet won a
World Cup final.
That India is favored to win the first
all-Asian final reflects not so much
home-field advantage — no home team
has yet won a World Cup final — as its
impressive performance in beating Pa-
kistan. ‘‘The players have been fantast-
ic and are playing exceptional cricket at
the moment,’’ said India’s coach, Gary
Kirsten, a South African who leaves
after the World Cup.
Sri Lanka will be a tough opponent. It
leads India, 4-2, in head-to-head
matches in the World Cups and com-
bines awesome top-order batting with a
beguiling range of unorthodox bowlers.
‘‘We are playing a very good team and
many a less gifted player has earned a
more ephemeral measure of fame for a
quirk or a timely hit.
The spring Koshien is an invitational
event that involves 32 teams, with the fi-
nal set for Sunday; the summer Koshi-
en, which features extensive regional
qualifying, concludes in August with a
championship phase involving 49
teams.
Both final phases are played in volu-
minous Hanshin Koshien Stadium in
Nishinomiya, near Kobe, and both tour-
naments, which were sponsored at their
FRIDAY, APRIL 1, 2011 | 11
will need to be at the top of our game,’’
Kirsten said.
But while Sri Lanka’s apparent weak
point — a fallible middle order batting —
plagued the team again even when it
beat New Zealand, India looked strong in
every aspect against Pakistan. ‘‘Every-
body has been saying that India’s bowl-
ing is not up to the mark, but in the
crunch they really did well,’’ a former In-
dia player, Agit Agarkar, told Sky Sports.
Pakistan did not help itself Wednes-
day as it pursued 261 to win. Two senior
players, Younis Khan and Misbah ul
Haq, scored so slowly that an achievable
target was made impossible. But India’s
bowling and fielding was the best it has
been, justifying a description by former
India captain Ravi Shastri as ‘‘thor-
oughly professional and disciplined.’’
Against Pakistan, Tendulkar had
provided the substance of India’s in-
nings. When he was reprieved on re-
view after being given out leg before
wicket, then dropped four times by Pa-
kistan fielders, fate seemed to be push-
ing him toward his 100th century. The
stunned silence when was dismissed for
85 reflected not only disappointment at
seeing history postponed, but real fear
that India might lose. It did not, so the
perfect ending looms.
EUGENE HOSHIKO/THE ASSOCIATED PRESS
inception by rival newspapers that con-
tinue to ensure their extensive cover-
age, predate the N.C.A.A.’s, which
began in 1939.
But the decisive phase of the summer
Koshien lasts only two weeks, not three,
and for all the passion, the national
broadcaster NHK probably did not have
to pay anything remotely close to the
nearly $11 billion that the U.S. broad-
casters CBS and Turner Sports agreed
to pay last year for 14 years of television
rights to the N.C.A.A. tournament.
Le March Madness indeed.
Victory123
....
12 | FRIDAY, APRIL 1, 2011 INTERNATIONAL HERALD TRIBUNE

basketball baseball sports

SPORTS

Long climb to top for women’s team Roundup

BASKETBALL games. Nobody cared.’’ D E AT H S

When Lynn Hickey became the wom-
en’s basketball coach in 1984, Texas
Austrian silver medalist dies
Texas A&M, which A&M began charging admission, Lang- after jumping from a window
banned female students ston said, because Hickey believed ‘‘if
you don’t charge, you’re not worth com-
Claudia Heill, an Olympic silver medal-
ist in judo, has committed suicide by
until 1963, in Final Four ing to see.’’ jumping out of a window in Vienna, the
Change at Texas A&M, and every oth- Austrian federation said. She was 29.
BY JERÉ LONGMAN er university, was accelerated by Title Heill won silver in the under-63 kilo-
IX, the 1972 U.S. law that prohibited sex gram category at the 2004 Athens
When Penny King began working in the discrimination in matters of education. Olympics. She also won silver at the
ticket office at Texas A&M in 1972, she In 1999, school officials began a campaign European championships in 2001 and
could not imagine that the university’s to become one of the nation’s top public 2005. The Austrian athlete retired one
women’s basketball team would ever universities by 2020. Robert Gates, the year after finishing fifth at the 2008
reach the Final Four. university’s president from 2002 to 2006 Beijing Games. She had been working
‘‘I couldn’t imagine women having a and now the U.S. secretary of defense, as a coach of juniors.
basketball team,’’ King, now the deputy envisioned athletics as Texas A&M’s The federation said in a statement
MARCIO JOSE SANCHEZ/THE ASSOCIATED PRESS athletic director, said with a laugh Wed- ‘‘front porch,’’ providing national expo- that ‘‘nobody could foresee this act of
The answer is a Giant San Francisco closer Brian Wilson has an interest in nesday morning. sure and a shared campus experience. desperation.’’ It did not provide more
crossword puzzles, and now he is an answer to one: He was No. 30 down in the cross- It would be difficult to make up a more He hired a new athletic director from details. (AP)
word that ran in the International Herald Tribune on Thursday. nytimes.com/baseball extreme turnabout in the acceptance TIM SHARP/REUTERS Nebraska, Bill Byrne, whose first hire
and appreciation and celebration of Danielle Adams is the first All-American was Blair. He had coached Arkansas to SOCCER
women as students and athletes than at for the Aggies’ women’s basketball team. the 1998 women’s Final Four but said he
Too little time left for Chilean
SCOREBOARD Texas A&M, which was founded in 1876
as a men’s military institution.
got the Texas A&M job in 2003 only after
higher-profile coaches turned it down. to challenge Blatter for post
When the Aggies (31-5) face Stanford versity’s aspirations for women’s sports ‘‘Gates did a tremendous job realizing Elias Figueroa, a former defender for
(33-2) in the national semifinals Sunday are no less determined than Stanford’s. what traditions were in place and what Chile, will not run against Sepp Blatter
BASKETBALL ICE HOCKEY in Indianapolis, they will make their The Aggies won the 2009 and 2010 needed to change,’’ Blair said on a con- for the presidency of soccer’s govern-
first appearance in the Final Four. And N.C.A.A. outdoor track and field cham- ference call, adding that one of those ing body.
N.B.A. N.H.L. Danielle Adams, a Charles Barkley- pionships. The equestrian team is necessary changes was a commitment Figueroa, who played in three World
EASTERN CONFERENCE
ATLANTIC DIVISION W L Pct GB
EASTERN CONFERENCE
ATLANTIC DIVISION
esque forward, will start the game as ranked No. 1 in the country. The soccer, to women’s athletics, including basket- Cups, was considering a campaign
y-Boston 51 22 .699 — x-Philadelphia 76 46 20 10 102 243 202 the team’s first all-American, the de- softball and swimming and diving ball. ‘‘No one would touch it until they against the incumbent, but he said that
Philadelphia 39 36 .520 13
New York 37 38 .493 15
x-Pittsburgh
N.Y. Rangers
77
77
45
41
24
31
8
5
98
87
220
218
188
182
scendant of basketball pioneers whose teams are national powers. were committed.’’ he did not have time to organize before
New Jersey 23 51 .311 28› New Jersey 76 35 36 5 75 158 191 struggles she seemed startled to learn On Tuesday night, the women’s basket- He built a flailing team into a national the June 1 vote. His decision means Mo-
Toronto 20 54 .270 31›
SOUTHEAST DIVISION W L Pct GB
N.Y. Islanders
NORTHEAST
77 29 36 12 70 212 244 about in this far more equitable era. ball team played before 11,508 fans in Dal- power, reaching the regional semifinals hamed Bin Hamman, the head of Asia’s
x-Miami 52 23 .693 — x-Boston 76 43 23 10 96 229 178 ‘‘I can’t imagine when women had to las. While a majority of fans cheered on in 2008 and now the Final Four with a governing body, is the only declared
x-Orlando 47 28 .627 5
x-Atlanta 43 32 .573 9
Montreal
Buffalo
78
77
41
39
30
29
7
9
89
87
205
226
203
214
wash their own uniforms or they got 25 Baylor, Texas A&M had its rousing share philosophy built on constricting de- candidate running against Blatter for
Charlotte 32 42 .432 19› Toronto 77 35 32 10 80 205 235 fans a game and had to use a men’s lock- of supporters, including three busloads of fense. All four of Texas A&M’s oppo- FIFA president.
Washington 18 56 .243 33› Ottawa 77 29 38 10 68 177 238
CENTRAL DIVISION W L Pct GB SOUTHEAST
er room,’’ Adams said in a telephone in- fans who traveled seven hours round-trip nents in this N.C.A.A. tournament were The time remaining to get nominated
y-Chicago 54 20 .730 — x-Washington 77 44 22 11 99 207 185 terview a day after the second-seeded held below 50 points. and campaign ‘‘was insufficient,’’
Indiana 34 42 .447 21 Tampa Bay 76 41 24 11 93 228 230
Milwaukee 30 44 .405 24 Carolina 77 37 30 10 84 220 228
Texas A&M defeated the top-seeded ‘‘When Aggie basketball is the ‘‘We’re aggressive and we have great Figueroa, 64, said Wednesday in an
Detroit 26 48 .351 28 Baylor, 58-46, in the final of the Dallas technique, so we don’t foul all the time,’’ e-mail. (BLOOMBERG)
Cleveland 15 59 .203 39
Atlanta
Florida
76
77
32
29
32
36
12
12
76
70
211
187
249
212
Region. ‘‘A lot has changed. We appreci-
leading topic on the farm in said Adams, a 6-foot-1, or 1.85-meter, for-
WESTERN CONFERENCE
SOUTHWEST DIVISION W L Pct GB
WESTERN CONFERENCE
CENTRAL DIVISION ate what those women went through and Direct, Texas, you know it is a ward. ‘‘Teams get frustrated when our O LY M P I CS
x-San Antonio
x-Dallas
57
53
17
21
.770
.716
—
4
Detroit
Nashville
77 44 23 10
77 41 26 10
98
92
247
203
226
182
thank them for what the sport is today.’’ big deal.’’ guards are pressuring 30 feet from the
German city schedules vote
New Orleans 43 32 .573 14› Chicago 76 41 27 8 90 242 209 Women were not admitted to Texas basket.’’
Memphis
Houston
42
39
33
36
.560
.520
15›
18›
St. Louis 77 35 32 10 80 224 225
A&M as full students until 1963. When Last season, Adams’s renewed dedic- on taking part in 2018 Games
Columbus 76 34 31 11 79 203 232
NORTHWEST DIVISION W L Pct GB NORTHWEST they were allowed to join the Corps of from the campus in College Station. ation led her to lose nearly 40 pounds, or The people of Garmisch-Partenkirchen,
x-Oklahoma City 50 24 .676 — z-Vancouver 77 51 17 9 111 250 176
Denver 45 29 .608 5 Calgary 78 38 29 11 87 237 230
Cadets in 1974, stories of harassment be- ‘‘We’ve come from having 30 parents 18 kilograms, and develop a deft shoot- Germany, will vote May 8 on whether
Portland 43 32 .573 7› Minnesota 76 36 32 8 80 191 215 came widespread. One cadet, Melanie in the stands to sending buses of people ing and passing touch both inside and their community should host Alpine
Utah 36 39 .480 14› Colorado 75 28 39 8 64 211 267
Minnesota 17 58 .227 33› Edmonton 76 23 42 11 57 180 251
Zentgraf, became so frustrated by a to Dallas for a ballgame,’’ King said. on the perimeter. This season, she aver- skiing if Munich wins its bid for the 2018
PACIFIC DIVISION W L Pct GB PACIFIC sense of exclusion that she filed a dis- ‘‘Words can’t explain the turnaround.’’ aged 22.7 points and 8.7 rebounds and Winter Olympics.
y-L.A. Lakers 53 20 .726 — San Jose 76 44 23 9 97 224 199
Phoenix 36 38 .486 17› Phoenix 78 42 25 11 95 221 213
crimination lawsuit. When she gradu- When the women’s team got its own was named first team all-American by Officials in Garmisch-Partenkirchen
Golden State
L.A. Clippers
32
29
44
46
.421
.387
22›
25
Los Angeles 76 44 26 6 94 209 181 ated in 1980, the university president re- locker room in 1977, it was a converted The Associated Press. said two referendums — one for and
Anaheim 77 44 28 5 93 223 223
Sacramento 21 53 .284 32› Dallas 75 38 26 11 87 209 212 fused to shake her hand. Five years men’s dressing area with artificial After the game Tuesday in Dallas, one against taking part in the Olympics
x-clinched playoff spot; y-clinched division
WEDNESDAY
x-clinched playoff spot; z-clinched conference later, a U.S. court order ushered women flowers placed in the urinal. In the 1980s, Trigg Crawford, who played at Texas — had been accepted Wednesday.
Atlanta 85, Orlando 82 WEDNESDAY into the marching band. players performed aerobics outside the A&M in the late 1970s, drove two hours A group of farmers and landowners
Buffalo 1, N.Y. Rangers 0
Charlotte 98, Cleveland 97
Indiana 111, Detroit 101 New Jersey 3, N.Y. Islanders 2
‘‘I got out of high school in 1963 and basketball arena in a desperate and fu- home to the family farm that she oper- in the community are refusing to cede
Milwaukee 104, Toronto 98 Carolina 6, Montreal 2 my dad wanted me to go to A&M,’’ said tile attempt to attract fans, said Lisa ates. Wednesday morning, when a local their land for use in the Winter
Philadelphia 108, Houston 97
Miami 123, Washington 107
St. Louis 10, Detroit 3 Gary Blair, now the women’s basketball Langston, who became the university’s farmer offered to haul her tractor into Olympics despite having given it up for
Anaheim 4, Calgary 2
New York 120, New Jersey 116
(AP)
coach. Instead, he chose to play baseball career leading scorer from 1982 to 1986. town for repairs, the first thing he wanted other events. Munich is running
Memphis 110, Golden State 91
Chicago 108, Minnesota 91
at Texas Tech. ‘‘I didn’t want to go to an ‘‘It was sad,’’ said Langston, who is to discuss was the victory over Baylor. against Annecy, France, and Pyeong-
New Orleans 95, Portland 91 all-male school,’’ he said. now assistant athletic director of the ‘‘When Aggie basketball is the leading chang, South Korea. The International
Denver 104, Sacramento 90
Oklahoma City 116, Phoenix 98
ONLINE: COMPLETE SPORTS RESULTS Today, nearly half of Texas A&M’s Fort Worth school district. ‘‘I had topic on the farm in Direct, Texas, you Olympic Committee will select the host
Dallas 106, L.A. Clippers 100 (AP) global.nytimes.com/sports 46,500 students are women. And the uni- friends who didn’t even come to the know it is a big deal,’’ Crawford said. city on July 6 in South Africa. (AP)

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THE GLOBAL EDITION OF THE NEW YORK TIMES
properties
Skiers and snowboarders cruising down to the Whistler Village ski resort, left, in British Columbia. Sales at the resort town have slowed as buyers from the United States have retreated, unlike the turnover in cosmopolitan Vancouver, right, which is popular with Asians.
Location, location, location in Canadian markets
VANCOUVER, BRITISH COLUMBIA
While Vancouver sizzles
with interest from Asia,
sporty Whistler withers
BY JOANNE BLAIN
With a golf course designed by Jack
Nicklaus outside its door and views of
Olympic-caliber ski slopes from its mas-
ter suite, the five-bedroom home in
Whistler, British Columbia, could be a
perfect fit for a well-heeled buyer.
But the house, listed at 3.5 million Ca-
nadian dollars, or $3.5 million, has lan-
guished on the market for more than a
year. Other pricey properties in the ski
resort area have a similar history.
There is a different story just two
hours south in Vancouver, where a
5,985-square-foot, or 556-square-meter,
house recently sold to a mainland
Chinese buyer less than a month after it
was listed, and at close to its 5.3 million
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dollar asking price.
Overseas buyers are playing signifi-
cant roles in both real estate markets, but
producing markedly different results.
In Vancouver, Asian purchasers,
most from mainland China, are snap-
ping up high-end houses and condos,
keeping sales brisk and prices high.
While in Whistler, sales have slowed, in
part because the pool of U.S. buyers, tra-
ditionally the dominant foreign pres-
ence at the resort, has shrunk and other
foreign investors have not picked up the
slack.
‘‘Whistler is having the perfect
storm,’’ said Ross McCredie, president
of Sotheby’s International Realty
Canada. There has been a province-
wide decline in sales of recreational
property, which is Whistler’s main at-
traction; many Americans do not want
to face the bureaucracy of frequent
cross-border trips, and the Canadian
dollar is almost at par with the U.S. cur-
rency.
American buyers now account for 7
percent to 8 percent of residential sales
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in Whistler, down from a norm of 10 per-
cent to 12 percent, said Pat Kelly, owner
of Whistler Real Estate Co.
To prospective U.S. buyers, Canadian
properties no longer look like the bar-
gain they were in 2002, when the Cana-
dian dollar was worth just 62 U.S. cents,
or even just a year ago, when it was at 79
U.S. cents.
‘‘The enthusiasm for Whistler prop-
erty has declined a bit as the currency
exchange rate has reversed itself,’’ Mr.
Kelly said. The drop has been exacer-
bated by a perception among U.S. buy-
ers that real estate, particularly resort
property, is not a good investment right
now, he added.
Cameron Muir, chief economist for
the British Columbia Real Estate Asso-
ciation, said, ‘‘It’s going to be a little
while before we see recreational real es-
tate buyers and investors return to the
kind of numbers they were at prior to
the recession.’’
Despite their sharp interest in the
Vancouver real estate market, buyers
from mainland China have not been as
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captivated by Whistler, perhaps because
skiing has only recently started to catch
on in popularity with mainland Chinese.
Instead, buyers from Pacific Rim lo-
cations like Hong Kong, Singapore, Ko-
rea and Taiwan make up the second-
biggest group of foreign investors in the
resort community, Mr. Kelly said,
though they have not filled the void left
by U.S. buyers.
‘‘We would certainly define this as a
buyers’ market right now,’’ Mr. Kelly
said. But with interest rates near histor-
ic lows, many prospective sellers are
willing and able to wait for an upturn.
That means U.S. buyers, who have
seen ‘‘fire sale’’ prices at some resort
communities in Arizona, Florida and
California ‘‘come up here expecting the
same thing is happening in Canada, and
it’s not,’’ Mr. Kelly said. ‘‘That usually
catches them a little off guard.’’
In Vancouver, U.S. investors have al-
ways been a small part of the market,
but mainland Chinese buyers have a
more recent, and rapidly growing, influ-
ence, Mr. Muir said.
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FRIDAY, APRIL 1, 2011 | 13
FABRICE COFFRINI/AGENCE FRANCE-PRESSE (LEFT); LYLE STAFFORD/BLOOMBERG NEWS
Mr. McCredie, of Sotheby’s, said that tion, according to a report in March
in the past six months, the ‘‘vast major- from the Real Estate Board of Greater
ity’’ of sales of Vancouver-area homes Vancouver.
priced at 2 million dollars or more have In 2010, a record 375 Vancouver
been to foreign buyers, most from main-
land China. ‘‘Foreign buyers have driv-
houses and condos sold for more than 3
million dollars, according to Multiple
en up price points here, and they have Listing Service records, including one
heavily influenced local buyers,’’ he single-family home that sold for 17.5 mil-
said, adding that from a sales perspec- lion dollars.
tive, ‘‘if we did not have foreign buyers, ‘‘From a global investment perspec-
we’d be in a lot of trouble.’’ tive, the real estate market in Canada is
British Columbia gets about 55 per- seen as relatively stable, not with the
cent of all ‘‘investor-class’’ immigrants kind of volatility we’ve seen in the
to Canada, Mr. Muir said, and the major- United States,’’ Mr. Muir said.
ity settle in the Vancouver area. To qual- One high-profile project that has ben-
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individual needs to have a minimum net couver market is the Private Resi-
worth of 1.6 million dollars and be pre- dences at Hotel Georgia, a luxury
pared to invest 800,000 dollars in downtown condominium development
Canada. still under construction that is attached
Many make that investment — and to a refurbished heritage hotel.
more — in real estate, which has helped Since sales began in 2007, more than
drive the price of a typical single-family 60 percent of its 156 suites have sold at
house up to 1.85 million dollars on Van- prices ranging from 1.3 million to 9.6 mil-
couver’s west side and close to 1.1 mil- lion, and interest from international
lion dollars in Richmond, a southern buyers has been particularly brisk in re-
suburb that has a large Asian popula- cent months, sales agents say.
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14 | FRIDAY, APRIL 1, 2011 INTERNATIONAL HERALD TRIBUNE

Business W ITH

4 Irish banks
are pushed
Even Catalonia falters in Spain’s financial crisis
BARCELONA

to obtain BY RAPHAEL MINDER

¤24 billion
LONDON
New stress tests uncover
deeper problems from
real estate lending
BY LANDON THOMAS JR.
The Irish government said Thursday
that four banks needed to raise an addi-
tional ¤24 billion to cover problem real
estate loans, part of the results of a long-
awaited stress test on the country’s fail-
ing financial institutions.
While largely expected by the market,
the total aid figure was still a jarring
number — one that increases the total
bill for bailing out Ireland’s banks to
about ¤70 billion, or about $99 billion,
and increases government control of
the banking sector.
The Irish bank losses come amid fresh
concerns that Europe’s banking prob-
lems are getting worse, not better. In
Spain, which is experiencing a real es-
tate collapse similar to Ireland’s, a plan
for four troubled savings banks, or ca-
jas, to merge fell through Wednesday,
raising concerns there that, as was the
case in Ireland, Spain might be underes-
timating the depth of its banking crisis.
‘‘This has been one of the costliest
banking crises in history,’’ said Patrick
Honohan, the governor of the Central
Bank of Ireland, which oversaw the
stress tests. ‘‘There was a need for the
The city of Barcelona recently finished
building four care centers to house 154
mentally and physically disabled people.
Instead of opening, however, the cen-
ters, which were built at a cost of ¤14.5
million, or $21 million, are among 10 social
and health infrastructure projects in the
city that have been mothballed. The re-
gional government of Catalonia, of which
Barcelona is the vibrant, seaside capital,
does not have the funds to operate them.
Despite its reputation for economic
dynamism and the international allure of
its golden beaches, Catalonia is facing a
financing shortfall that has not only up-
set its drive toward greater autonomy
from the rest of Spain, but also deepened
market concerns about faltering fiscal
discipline among Spain’s 17 regions.
Indeed, the failure of Catalonia and
eight other regions to meet their 2010
deficit targets has helped to keep wor-
ries about Spain’s long-term financial
footing alive, despite significant im-
provement at the national level.
Catalonia, which has traditionally
been one of the wealthiest and most in-
dustrialized regions in Spain, is now
among its worst performers.
Its recently elected government faces
the daunting task of having to cut its
budget deficit by two-thirds this year to
fall back in line with targets set by the
central government. At the same time,
borrowing costs are rising, adding to an
already heavy debt pile.
‘‘For the general population, there
has been surprise and even shock at the
state of our finances,’’ Andreu Mas-
Colell, the finance minister of Catalonia,
said during an interview.
He is planning to cut public spending PHOTOGRAPHS BY STEFANO BUONAMICI FOR THE INTERNATIONAL HERALD TRIBUNE

banks to have ample capital to meet the
markets gloomy prognostications.’’
The market’s reaction was for the
most part muted. The yield on 10-year
Irish bonds rose 0.1 percent point Thurs-
day, to 10 percent, just off the all-time
high of 10.3 percent.
Expected or not, the large figure will
give the new Irish government fresh
ammunition to push more forcefully its
view that holders of senior, unsecured
bank debt — a security that is riskier in
nature than one that is currently guar-
anteed by the government — should
CATHAL MCNAUGHTON/REUTERS
An Allied Irish branch in Dublin. The
company will have to raise ¤13.3 billion.
10 percent this year, but still expects to Commuters traveling to Barcelona. Catalonia has rebelled against central government measures to cut train fares 5 percent, saying that the cost of operating public transport is rising.
have to borrow about ¤11 billion.
With an economy the size of Por-
tugal’s, Catalonia accounts for 16 per-
cent of the Spanish population, 19 per-
cent of the country’s gross domestic
product and 27 percent of its exports.
Catalonia’s ¤30.3 billion of debt,
however, represents 28 percent of
Spain’s combined regional debt pile, ac-
cording to figures published in Decem-
ber by the Bank of Spain.
Its budget deficit reached 3.9 percent
of its regional output last year, compared
with a target of 2.4 percent. As a propor-
tion of output, Catalonia now has the
fourth-highest deficit and the second-
biggest debt ratio among the 17 regions.
Warning of ‘‘challenges that will per-
sist throughout this year,’’ Moody’s last
month downgraded Catalan debt, along-
side that of three other regions and the The seat of the Catalan government. It has to cut its budget deficit by two-thirds in 2011. A center for the handicapped stands empty in Barcelona, which cannot afford to operate it.
sovereign debt of Spain. The credit rat-
ing agency also cut the rating for the
Barcelona city hall. Rodríguez Zapatero introduced energy- across Spain that the mathematics of fi- business school. ‘‘The problem with
Bay of
Catalonia’s difficulties are no differ- saving measures to offset rising oil nancing regionalism don’t work out,’’ Catalonia is not so much its bad num- 200 km
Biscay FRANCE
ent from those that have brought pain to prices that included ordering regions to said Salvador Garcia Ruiz, one of the bers but a loss of credibility and the
the whole of Spain, with a credit crunch cut fares on commuter trains 5 percent founders of Emma Initiative, an associ- weak control that the central govern-
resulting from the worldwide financial to encourage more use of public trans- ation promoting Catalan interests. ‘‘And ment has over the regions.’’ CATALONIA
crisis coinciding with a bursting of the port. Catalonia has led a campaign we’re the first to agree because we’re the Last October, just before being ousted
real estate bubble that has left banks against the measures, refusing to ones who’ve been paying for this party.’’ from office, the Catalan coalition gov- Madrid Barcelona
PORTUGAL

take a loss on their position to ease the
state’s punishing debt burden.
So far the European Union and the In-
ternational Monetary Fund have resist-
ed such a move, arguing that to restruc-
ture any amount of debt would be more
a political than a practical measure.
They also contend that restructuring
would create a broader market panic as
investors unload not just their Irish
holdings, but similar exposure in other
weak economies like Greece, Spain and
Portugal.
Ireland’s banks relied on the Euro-
pean Central Bank for ¤88.7 billion of fi-
nancing at the end of February, the cen-
tral bank said. The Irish finance
minister, Michael Noonan, said Thurs-
day that the E.C.B. had agreed to extend
its financing over the medium term to
give Ireland’s banks more time to work
through their problems.
The ¤24 billion figure comprises ¤13.3
billion for Allied Irish Banks, ¤5.2 billion
for Bank of Ireland, and the rest for two
smaller institutions, Irish Life & Perma-
nent and EBS Building Society. EBS will
be folded into Allied Irish, the central
bank said.
struggling to provision for bad loans.
Furthermore, Mr. Mas-Colell and oth-
ers suggested that in the months before
the election last year, governing politi-
cians took their eye off the ball in an ul-
timately unsuccessful effort to keep
their fragile, three-way party coalition
in power.
‘‘The fiscal adjustments that any sen-
sible person should have seen as neces-
sary two years ago didn’t start then, and
some of them are only starting now,’’
Mr. Mas-Colell said.
The new Catalan government,
however, has not allowed financial
squeezing to undermine its push for
more autonomy, from efforts to keep
some ailing savings banks under
Catalan control to a recent ¤10.5 million
emergency loan to Spanair, a struggling
airline based in Barcelona.
The financial difficulties have
heightened the tensions that flare fre-
quently in the decentralized Spanish
political system.
Last month, Prime Minister José Luis
shoulder the financial burden at a time
when transport operating costs are
rising.
Mr. Mas-Colell accused Mr. Zapa-
tero’s government of setting double
standards. ‘‘We get scolded in the morn-
The troubles in the region,
one of the wealthiest in Spain,
have deepened concerns about
the country’s fiscal discipline.
ing for spending too much and a mea-
sure is then taken in the afternoon
which has to be paid by us.’’
The problem, many local commenta-
tors claim, lies not with past extrava-
gance or mismanagement but with a na-
tional financing system that has left
Catalonia contributing the equivalent of
10 percent of its G.D.P. to support poorer
regions through taxes collected by the
central government in Madrid.
‘‘There is increasing recognition
Still, some industrialists predict that
Catalonia will rebound faster than the
rest of Spain because of its exposure to
foreign markets.
‘‘As an industrial hub, we got hit
harder in the recession, but we also
have the capacity to recover faster and
benefit more from the stronger mo-
mentum of Germany and others,’’ said
Joaquim Boixareu, chief executive of
Irestal, a stainless steel company based
on the outskirts of Barcelona.
In the wake of the downgrade by
Moody’s, Catalonia’s most immediate
concern is how to secure additional fi-
nancing on affordable terms. In March,
the regional government had to aban-
don a planned sale of as much as ¤500
million of debt to institutions after fail-
ing to attract sufficient demand.
‘‘Catalonia recently borrowed at a
cost that was close to Greece’s and that
is not sustainable,’’ said Luis de Guin-
dos, director of the Center for the Finan-
cial Sector, a Madrid-based institute run
by PricewaterhouseCoopers and the IE
ernment sold ¤3 billion of bonds to its
citizens. The sale met with strong de-
mand, but also drew criticism from
economists because of its pricing. The
one-year bonds were sold with a 4.75
percent interest rate, on top of which the
government paid a fee to the issuing
banks of about 3 percent. Such generous
terms set ‘‘a precedent that I would
prefer not to have,’’ Mr. Mas-Colell said.
With municipal elections scheduled
for May, his party’s austerity drive has
had a direct effect on city halls like Bar-
celona’s, since the regional government
runs services like health and education
— hence the shelving of projects like
those for the handicapped.
‘‘The problem used to be that we
didn’t have enough infrastructure,’’
said Jordi William Carnes i Ayats, Bar-
celona’s deputy mayor responsible for
the treasury. Now, he said, there was a
lack of funds to put it into operation.
The belt-tightening has extended as
far as F.C. Barcelona, a soccer club idol-
ized by most Catalans. Last autumn, a
SPAIN
Mediterranean
Sea
ALGERIA
MOROCCO
team of new directors abandoned a
planned revamp of the Camp Nou stadi-
um after concluding that the club could
not afford the ¤300 million project,
which was designed by the British ar-
chitect Norman Foster.
‘‘Barcelona wants to have the status
of a capital city, but to maintain such a
status, you need to spend a lot,’’ said
François Badelon, a French fund man-
ager who has worked in Barcelona for
the past three years. ‘‘The infrastruc-
ture here is great, but I’m not sure that
there are enough people using it to justi-
fy it all.’’

Germany uncovers euro-coin scam Economic data highlight

Also on Thursday, another fallen Irish
bank, Anglo Irish, announced the
largest loss in the country’s corporate

uneven European recovery

history — ¤17.7 billion. Anglo Irish,
which is expected to receive ¤34 billion
from the state, was not included in the
stress test as it is being gradually sold.
Officials of the central bank said the
stress test, which was conducted with
the U.S. money management firm
BlackRock, had come as close as possi-
ble to exposing the extent of bad loans
still remaining in the system.
Officials said the process of reducing
the Irish funding gap, or the difference
between bank deposits and loans, will
take years and will require the write-off
and disposal of ¤72 billion in problem
loans by 2013.
It will also require a revival of depos-
itor and investor confidence, neither of
which seems imminent.
The gap, also known as the loan-to-de-
posit ratio, now stands at 171 percent
against a government goal of 122 per-
cent. The shortfall is being financed by
the European Central Bank and the Ir-
ish Central Bank to the tune of about
¤150 billion, an amount that is about
equal to the country’s gross domestic
product.
Repaying this obligation will be one of
the central challenges for the govern-
ment in the years ahead.
LONDON
6 arrested in fraud case
involving the recycling
of scrap metal for cash
BY JULIA WERDIGIER
German prosecutors on Thursday un-
covered a multimillion-euro scam that
stretched over three years and involved
shredded euro coins, China, flight at-
tendants and the German central bank.
The Frankfurt prosecutor said six
men, four of them Chinese, had been ar-
rested and 10 locations in Frankfurt and
its vicinity searched in a peculiar case of
fraud to turn scrap metal into cash.
The scam generated a total of ¤6 mil-
lion, or $8.5 million, from 2007 to Novem-
ber 2010 for the suspects, the prosecutor
said.
The suspects worked with groups in
China that reassembled shredded ¤1 and
¤2 coins, according to the prosecutor.
The euro coins were probably shred-
ded in Europe and then sold to China as
scrap metal, the prosecutor said.
The reassembled coins were then
probably flown to Germany with the
help of four flight attendants, who did
not have any weight restrictions for
their luggage, the prosecutor said in a
statement.
Lufthansa, the biggest German air-
line, was informed that some of its em-
ployees were part of the investigation,
Claudia Lange, a spokeswoman for the
airline, said Thursday. She declined to
give any more details.
Once in Germany, the prosecutor
said, the coins were mixed with real ¤1
and ¤2 coins, put in official bags and
taken to be exchanged for cash at the
Bundesbank, Germany’s central bank,
in Frankfurt.
The Bundesbank is the only central
bank in Europe that exchanges old or
damaged euro coins without a fee and
then transfers the amount to any bank
account.
The bank generally weighs the bags
of coins it receives to determine the
value. Trying to exchange such reas-
sembled coins at the bank is legally seen
as fraud and distributing counterfeit
money, the prosecutor said.
The prosecutor said that no Bundes-
MARKUS SCHOLZ/EPA
Prosecutors say the scam involving
scrapped coins generated ¤6 million.
bank employees were being investigat-
ed. The Bundesbank said that it was fa-
miliar with the investigation and that it
was not involved in the destroying of the
coins or the recycling of the metal. The
bank would not comment further.
During the raids, the prosecutor con-
fiscated some documents, laptops and
desktop computers and found about
three tons of coin parts as well as a ma-
chine to reassemble coins.
Five of the six arrested were men who
handed in the damaged coins at the cen-
tral bank, according to the prosecutor.
PARIS
BY MATTHEW SALTMARSH
The uneven nature of the European eco-
nomic recovery was underlined by data
released Thursday, which showed prices
rising and weak consumption across the
euro zone. Portugal’s budget situation
worsened even as the economic picture
in France and Germany improved.
Officials in Portugal attributed the
deficit figure for 2010, which was higher
than expected, on changes in account-
ing rules. But coming on the heels of a
government collapse and two down-
grades, the figure sent yields on 10-year
Portuguese bonds soaring to a new high
since it adopted the euro, increasing
pressure on the country as it struggles
to avoid a financial rescue.
A weak economy and rising prices
have worsened Portugal’s troubles.
For the entire euro area, the Euro-
pean Union’s statistics agency reported
that annual inflation rose to 2.6 percent
in March from 2.4 percent in February,
according to an initial estimate.
Analysts said higher oil and food
prices remained the main factors be-
hind the rise. But they added that a
tightening labor market in countries
like Germany, and potential price in-
creases by companies facing higher
commodity costs, were likely to push up
core inflation over the coming months.
Core inflation excludes the more vola-
tile energy and food categories.
The Federal Labor Agency in Ger-
many, the largest economy in Europe,
reported that the country continued to
add jobs in March. German unemploy-
ment dropped by a seasonally adjusted
55,000 people for the month, lowering the
jobless rate to 7.1 percent from 7.3 per-
cent in February. It was the lowest un-
employment rate since German reunifi-
cation in 1990, according to economists.
At the same time, a separate report
from the Federal Statistical Office
showed that German retail sales fell 0.3
percent in February from January,
when they rose 0.4 percent.
ECONOMY, PAGE 16
Victory123
....
THE GLOBAL EDITION OF THE NEW YORK TIMES
E.U. banks
drew heavily
on Fed funds
WASHINGTON
REUTERS
A bevy of European banks, including
Dexia and Depfa, took out tens of bil-
lions of dollars in emergency loans from
the U.S. Federal Reserve as the finan-
cial crisis exploded in 2008, documents
released Thursday showed.
The Fed’s lending data, included
among more than 25,000 pages of docu-
ments that a court ordered the central
bank to release, show that Dexia and De-
pfa accounted for nearly half of all bor-
rowing on Oct. 29, 2008, the day that lend-
ing through the Fed’s discount window
peaked at $111 billion. Dexia, a Belgian-
French bank, borrowed $26.5 billion,
while Depfa, a Dublin-based subsidiary
of the German lender Hypo Real Estate
Holding, borrowed $24.6 billion.
The collapse of Lehman Brothers in
September 2008 sent the global econo-
my into a tailspin and caused the finan-
cial system to seize up. The Fed’s docu-
ments illustrate how widely the damage
spread, obliging banks around the
world to seek emergency help.
In the days and weeks after Lehman’s
bankruptcy, the Fed also made multibil-
lion-dollar loans to other foreign banks
through its discount window. Those
banks included Erste Group of Austria,
Bank of Scotland and Société Générale
of France.
The discount window is the Fed’s regu-
lar facility for providing emergency cash
to banks in difficulty. In normal times it is
rarely used, in part because banks fear
the stigma of having sought emergency
help. The Fed resisted releasing the iden-
tities of banks that tapped the discount
window on the grounds that doing so
might discourage lenders from seeking
help in the future. It released the names
only after running out of legal appeals.
The documents detail lending from
the Fed’s discount window for the peri-
od of Aug. 8, 2007, to March 1, 2010.
Bloomberg, the parent of Bloomberg
News, and Fox News Network, owned
by News Corp., had sought the bailout
details under the U.S. Freedom of Infor-
mation Act, which requires government
agencies to make certain documents
public.
The lending facility is an important
tool the Fed has at its disposal to ensure
banks remain liquid in times of stress.
‘‘It should be emphasized that confiden-
tiality is not meant to protect the identit-
ies of individual banks per se, but rather
to make the discount window more effec-
tive in dealing with market disturb-
ances,’’ two economists from the Federal
Reserve Bank of New York, João Santos
and Stavros Peristiani, wrote Wednes-
day on the regional central bank’s blog.
A law passed last year to overhaul fi-
nancial regulation required the Fed to
divulge borrowing from special emer-
gency programs that it set up to stabilize
financial markets during the economic
meltdown, but that did not apply to the
Fed’s regular discount window. The new
law does, however, require the Fed to re-
lease of details of future discount win-
dow borrowing, but with a two-year lag.
A release of data in December revealed
that major banks had been big beneficia-
ries from some of the special emergency
programs the Fed set up during the crisis
from 2007 to 2009. The combined usage of
those emergency lending facilities
peaked at $600 billion on Nov. 5, 2008. The
discount window is a facility central
banks offer as part of their role as lender
of last resort, based on the idea that dur-
ing a crisis, even healthy banks can have
trouble getting short-term funds.
G-20 ministers advance toward global monetary reform
NANJING, CHINA
REUTERS
Finance ministers from the Group of 20
nations made modest progress Thurs-
day toward an overhaul of the global
monetary system that the French pres-
ident, Nicolas Sarkozy, said was so un-
stable that it could tip the world econo-
my back into crisis.
Ministers and central bankers from
the G-20 leading economies edged to-
ward a consensus on the need to include
the renminbi in the basket of currencies
that makes up the Special Drawing
Right, the International Monetary
Fund’s in-house money.
Adding the Chinese currency to the
S.D.R.’s would be a recognition of China’s
growing economic clout and would be a
concrete step toward making the global
monetary order more representative
and, the ministers hope, more solid.
‘‘Without rules, the international mon-
etary and financial system is incapable
of forestalling crises, financial bubbles
and the widening of imbalances,’’ Mr.
Sarkozy said in opening a daylong G-20
seminar in this eastern Chinese city.
‘‘Without rules and supervision, the
world runs the risk of being condemned
to increasingly serious and severe
crises,’’ he told an audience that included
Dominique Strauss-Kahn, the managing
director of the International Monetary
Fund, who is widely expected to run for
president against Mr. Sarkozy next year.
France holds the chairmanship this
year of the G-20, which brings together
developed and emerging economies ac-
The European Union based its complaint on U.S. research contracts to Boeing for development of material used in the Dreamliner.
Subsidy setback for Boeing
PARIS
But W.T.O. ruling finds
improper aid was less
than Brussels claimed
BY NICOLA CLARK
Boeing received at least $5.3 billion in
improper U.S. government subsidies to
develop its 787 Dreamliner and other jet
models, giving it an unfair advantage
over Airbus, its European rival, the
World Trade Organization confirmed in
a report published Thursday.
Washington said it was considering
appealing the ruling, the latest in a long-
running dispute between the world’s
two largest commercial plane makers.
In an 850-page report, the trade body,
based in Geneva, accepted a claim by the
European Union that research and de-
velopment grants provided by U.S.
space programs contributed substan-
tially to the technologies used in building
the 787, Boeing’s latest flagship.
But the W.T.O. said the amount of pro-
hibited support amounted to a fraction
of the more than $19 billion dating from
the late 1980s that Brussels had original-
ly challenged.
Ron Kirk, the U.S. Trade Representa-
tive, said Washington disagreed with
the W.T.O. panel’s findings and was
studying options for appeal. He empha-
sized that roughly half of the subsidies
condemned by the W.T.O. had been pre-
viously remedied by changes in Ameri-
can policy, noting that the panel had re-
commended the United States withdraw
just $2.7 billion in aid to Boeing.
The European Union hailed the
W.T.O’s decision as a ‘‘landmark rul-
ing.’’ Karel De Gucht, the E.U. trade
commissioner, called on Washington to
‘‘take the appropriate steps that may
assist to achieve a mutually agreed
solution to this dispute.’’
European supporters of Airbus had
focused much of their complaint on re-
search contracts that Boeing received
from the U.S. National Aeronautics and
Space Administration and the Depart-
counting for some 85 percent of global
output.
China, despite being asked to host the
forum, has not shown great enthusiasm
for Mr. Sarkozy’s initiative.
‘‘The reform process will be long-
term and complex,’’ Wang Qishan,
deputy prime minister of China, said in
his opening remarks.
China suspects that the West is look-
ing for new levers to require Beijing to
let the renminbi, now tightly managed
by the central bank, trade more freely
and to dismantle its capital controls
more quickly than it wants.
These conflicting interests crystal-
lized in Nanjing over the conditions for
including the renminbi in the S.D.R.
The S.D.R., now comprised of the dol-
lar, euro, yen and pound, is a synthetic
quasicurrency that is mainly used as an
accounting tool for the I.M.F.’s internal
operations. Its reach is limited — Libya
pegs its currency to the S.D.R. and trans-
it fees through the Suez Canal are calcu-
lated in the unit — but some experts say
the S.D.R. could evolve over time into an
important international reserve asset
alongside the dollar.
The French finance minister,
Christine Lagarde, said there was no
particular timetable for adding the ren-
minbi to the S.D.R., a step that would
come with strings attached.
‘‘We discussed the conditions that ap-
ply to belonging to the S.D.R. basket and
in particular we focused on the convert-
ibility and flexibility of the currency and
the relative independence of the central
bank,’’ she said at a closing news confer-
ence.
ment of Defense since the late 1970s to
develop lightweight carbon composite
materials that the manufacturer sub-
sequently used in the design of the
Dreamliner. As much as 50 percent of
the 787’s primary structure, including
the fuselage and wing, is made of com-
posite materials, more than any other
large civil aircraft.
In its report, which was submitted
confidentially to U.S. and European
trade negotiators at the end of January,
the W.T.O. largely agreed that, ‘‘absent
the aeronautics R.&D. subsidies, Boeing
would not have been able to launch an
aircraft incorporating all of the technol-
ogies that are incorporated in the 787.’’
It also found that Boeing’s start of the
787 program in 2004 had led Airbus to
lower the price of its A330 wide-body air-
craft to maintain market share. But it re-
jected that the 787 had any effect on the
price that Airbus was able to command
for its forthcoming challenger to the 787,
the A350-XWB.
The trade panel’s ruling comes sever-
al weeks after the Pentagon awarded
Boeing a $35 billion contract to supply
the U.S. Air Force with new aerial refuel-
ing tankers. Analysts said Boeing’s vic-
tory in that contest was likely to blunt
the sting of the W.T.O.’s findings for Boe-
ing’s supporters in Washington, and
they expressed hope that the two sides
would eventually move beyond this dis-
pute toward a negotiated settlement.
‘‘It has not been a very edifying spec-
tacle,’’ said Nick Cunningham, an
aerospace analyst and managing part-
ner at Agency Partners, a consulting
firm based in London. ‘‘It’s a lot of
sound and fury signifying very little.’’
In a case decided last June, the W.T.O.
found that Airbus had benefited from
four decades of improper subsidies to
vault past Boeing to become the world’s
top jet builder.
That ruling, which has been appealed
by both sides, concluded that Airbus
had received the subsidies, including
$15 billion in loans from European gov-
ernments at below-market interest
rates and several billion dollars in
grants, to produce the A380 superjumbo
and five other best-selling models. But
Studies along those lines could start
soon, she said.
As much as Beijing would like the
kudos that being a component of the
S.D.R. would entail, Chinese officials
bristled at the idea of strict conditions.
Yi Gang, a deputy governor of the cen-
tral bank, disputed the notion — voiced
JOSHUA ROBERTS/REUTERS
Mr. Geithner, the U.S. Treasury secretary.
‘‘This asymmetry in exchange
rate policies creates a lot of
tension. This is the most
important problem to solve.’’
by the European Central Bank presi-
dent, Jean-Claude Trichet, among others
— that a currency must be freely floating
before it can be included in the S.D.R.
Yu Yongding, a former central bank
policy adviser, took issue with the de-
mand that an S.D.R. component cur-
rency must be managed by an inde-
pendent central bank, a demand most
forcefully articulated by the U.S. Treas-
ury secretary, Timothy F. Geithner.
economy companies business
MARK RALSTON/AGENCE FRANCE-PRESSE
the W.T.O. stopped short of a wholesale
condemnation of government loans —
known as launch aid — that are repaid
largely through export sales.
The W.T.O. is expected to rule on that
appeal next month.
Airbus said Thursday that it was
pleased with the findings of the W.T.O.
report, but said it expected the Euro-
pean Union to appeal a number of issues
relating to legal interpretation.
Analysts said they hoped the publica-
tion of the report would bring an epic
battle over subsidies in the aircraft in-
dustry to a climax and eventually pave
the way for new set of ground rules
among the world’s makers of large civil
aircraft, a field that has grown substan-
tially since the United States and Euro-
pean governments began their dispute
nearly seven years ago.
Embraer of Brazil and Bombardier of
Canada, which for decades have special-
ized in smaller jets with less than 100
seats, have begun to develop larger
planes with the range and capacity ap-
proaching that of the Airbus A320 and
the Boeing 737 — single-aisle planes that
are the bread and butter of most of the
world’s airlines. Mitsubishi of Japan and
United Aircraft of Russia also expect to
field planes that can carry up to 200 pas-
sengers around the middle of this de-
cade, while China’s C919 jet is projected
to enter commercial service in 2016.
Last month, the Irish low-cost carrier
Ryanair, which currently operates a
fleet of 250 Boeing 737s, — confirmed it
was talking with the Chinese and Rus-
sians, as well as Boeing and Airbus,
about future jet orders.
‘‘It’s no longer a bipolar world,’’ Mr.
Cunningham said. ‘‘You can’t go down
this puritanical road of no government
funding for aerospace. You have five up-
and-coming competitors who aren’t go-
ing to play that game.’’
Single-aisle jets are expected to rep-
resent more than half of the roughly $3.6
trillion in anticipated new aircraft sales
over the next 20 years, according to in-
dustry estimates.
Christopher Drew contributed reporting
from New York.
The People’s Bank of China is far from
autonomous, as the most important de-
cisions concerning the exchange rate
and monetary policy are made by Com-
munist Party leaders.
‘‘It will take time for the RMB to be
part of S.D.R.,’’ Mr. Yu said, referring to
the renminbi.
Nevertheless, the German finance
minister, Wolfgang Schäuble, said he
expected more headway on the issue in
coming months.
‘‘I believe we made a lot of progress in
this direction today,’’ he said. ‘‘I am con-
fident that a lot will be achieved in this
direction in the French presidency.’’
In his prepared remarks for the sem-
inar, Mr. Geithner questioned whether
an international effort was really needed
to cure the ills in the global monetary
system. Inconsistency in exchange rate
policies was the biggest flaw, he said.
Without naming China, he said some
emerging countries ran tightly man-
aged currency regimes that fueled infla-
tion risks in their own economies, mag-
nified appreciation pressures in others
and generated calls for protectionism.
‘‘This asymmetry in exchange rate
policies creates a lot of tension,’’ Mr.
Geithner said. ‘‘This is the most impor-
tant problem to solve in the internation-
al monetary system today.’’
But he said the solution was not com-
plicated. ‘‘It does not require a new
treaty, or a new institution,’’ he said. ‘‘It
can be achieved by national actions to
follow through on the work we have
already begun in the G-20 to promote
more balanced growth and address ex-
cessive imbalances.’’
FRIDAY, APRIL 1, 2011 | 15
WITH
Claim against Google puts
Microsoft in unusual spot
BRUSSELS chael A. Cusumano, a professor at the
Massachusetts Institute of Technol-
ogy’s Sloan School of Management who
BY JAMES KANTER AND STEVE LOHR
has studied Microsoft.
Google played down a new European The Microsoft complaint, Mr. Cusu-
antitrust complaint filed Thursday mano notes, is also a reminder of the
against it by a chief rival, Microsoft, and comparative speed with which fortunes
said discussions to resolve earlier com- can shift in fast-moving technology
plaints were continuing with European markets. ‘‘It doesn’t happen instantly,
Union regulators. but it does happen faster than in most
The new complaint focuses on wheth- industries,’’ he said. ‘‘It took Google
er Google is denying a major rival access about a decade to really turn the tables
to key technologies that facilitate access on Microsoft.’’
to Google’s products and services. Bradford L. Smith, Microsoft’s gener-
In particular, Microsoft claimed that al counsel, filed the complaint in Europe
anti-competitive practices by Google on partly because the European Union
the Web and in smartphone software already has a broad antitrust investiga-
were aimed at hindering it and other tion of Google under way. In Washing-
rivals from examining and indexing in- ton, antitrust reviews of Google have fo-
formation that Google controls, like its cused on individual business deals
popular YouTube video clip service. rather than a pattern of conduct.
Al Verney, a spokesman for Google in But Mr. Smith noted that Google’s
Brussels, said the company was ‘‘not market share in Internet search in
surprised that Microsoft has done this, Europe was higher than in the United
since one of their subsidiaries was one States — about 90 percent in most coun-
of the original complainants.’’ tries in the European Union, compared
The existing inquiry into Google’s with 65 percent in the United States.
practices in Europe was prompted by ‘‘The search market in Europe is sub-
complaints filed by several European stantially less competitive than it is in
companies and groups, including Ciao, a the U.S.,’’ Mr. Smith said.
price-comparison site that Microsoft Google’s large market share in
owns. Microsoft also helps finance a lob- search, legal experts say, does invite
bying group in Brussels that has given antitrust scrutiny. Still, antitrust regula-
legal assistance to at least one other tors look for evidence of not only an un-
company that has complained in the fair advantage but also of less consumer
case. choice and higher prices.
Amelia Torres, a spokeswoman for ‘‘You do need to show consumer
the E.U. competition commissioner, Joa- harm,’’ said Herbert Hovenkamp, an
quín Almunia, said Google would be giv- antitrust expert at the University of
en ‘‘an opportunity to comment and to Iowa College of Law. ‘‘That becomes
give its own version of the facts’’ on the more difficult with search engines,
new Microsoft complaint. where it is easy for consumers to switch
For years, Microsoft, the swaggering to another search engine. That is differ-
giant of personal computer software,
battled competitors and antitrust regu-
ent than in PC operating systems in the
Microsoft case, where the technological
lators in Europe and the United States, lock-in was more obvious.’’
parrying their claims that it had bullied Though it is making an antitrust claim,
rivals and abused its market muscle. Microsoft is also claiming a bit of hypo-
In the United States, it received rul- crisy on Google’s part. In an interview,
ings against it and in 2001 reached a set- Mr. Smith, the Microsoft general coun-
tlement that prohibited Microsoft from sel, cited Google’s stated mission to ‘‘or-
using certain strong-arm tactics. In ganize the world’s information and make
Europe, Microsoft absorbed setbacks it universally accessible and useful.’’
and record fines from regulators and ‘‘That is a laudable goal,’’ Mr. Smith
judges. said. ‘‘But it appears Google’s practice
Microsoft, still immensely wealthy, is is to prevent others from doing the same
pouring billions into smartphones and thing. That is unlawful, and it raises se-
the Internet, especially Internet search. rious antitrust issues.’’
Yet the champion of the personal com- Google’s strategy, he added, seems to
puter era trails well behind Google. be to ‘‘wall off content so that it cannot
‘‘The company that was the 800- be crawled and searched by competing
pound gorilla is now resorting to anti- companies.’’
trust, where it is always the case that
the also-rans sue the winners,’’ said Mi- Steve Lohr reported from New York.
MICROSOFT, VIA BLOOMBERG NEWS
Happier days In a memoir due out next month, Paul G. Allen, left, accuses his co-
founder at Microsoft, Bill Gates, of whittling down his ownership in the company and
taking credit for some of his contributions. global.nytimes.com/technology
CAPITAL ITALIA
Société d’Investissement à Capital Variable
31, Z.A. Bourmicht, L-8070 Bertrange
R.C.S. Luxembourg B. 8458
(the « Company »)
ANNUAL GENERAL MEETING OF SHAREHOLDERS OF THE COMPANY
TO BE HELD ON 26 APRIL 2011
We are pleased to invite you to attend the Annual General Meeting of Shareholders (“AGM”) of the
Company, which will be held at its registered office on Tuesday 26 April 2011 at 10:00 am CET, with the
following agenda:
AGM AGENDA
1. Review of the report of the Board of Directors and of the Independent Auditors (“Réviseurs d’Entreprises”)
of the Company for the financial year ended 31 December 2010.
2. Approval of the Audited annual report of the Company for the financial year ended
31 December 2010.
3. Decision on the allocation of net results.
4. Discharge of the members of the Board of Directors of the Company for the financial year ended
31 December 2010.
5. Renewal of director’s mandates for Mr. Giordano LOMBARDO, Mr. Attilio MOLENDI,
Mr. Luis FREITAS DE OLIVEIRA, Mr. Stephen GOSZTONY, Mr. Marco PIRONDINI,
Ms. Nilly SIKORSKY, Mr. Antonio VEGEZZI, Mr. Sandro PIERRI and Mr. Simon LEVELL until
the Annual General Meeting of Shareholders to be held in 2012.
6. Renewal of Independent Auditors’ mandate for PRICEWATERHOUSECOOPERS S.À R.L. until
the Annual General Meeting of Shareholders to be held in 2012.
7. Miscellaneous.
ATTENDANCE
- Proxy form: If you cannot be present in person and wish to be represented at the AGM, you are
entitled to appoint a Proxy holder to vote for you. A Proxy holder need not be a Shareholder of the
Company. The proxy form will remain in force if the AGM, for any reason, is postponed. You can
return the Proxy form, which is included; by fax to +352 45 14 14 439 marked for the attention of
Ms. Carole BENINGER or Mr. Olivier LANSAC, or by mail to the following address:
31, Z.A. Bourmicht, L-8070 Bertrange using the reply paid envelope. To be valid, the proxy form
must be completed and received at the registered office of the Company prior to 5:00 pm CET on
Thursday 21 April 2011.
- Shareholders wishing to attend to the AGM shall notify the Company of their intent to do so at least
by 5:00 pm CET on Thursday 21 April 2011.
- Blocking Certificate: Holders of bearer shares, for which a physical certificate has been issued, will
be admitted to take part and vote at the AGM by providing a blocking certificate. This document
(to be sent with the proxy form if you intend to be represented) shall be issued by the bank, the
professional securities’ depositary or the financial institution where the physical share certificate is
on deposit. It must indicate the number mentioned on the share certificate and confirm that the share
certificate itself is kept in a vault until midnight of the AGM date.
No quorum is required and decisions will be passed by a simple majority of the shares present or
represented at the AGM.
The Audited Annual Report can be obtained on request at the registered office of the Company.
The Board of Directors
Capital Italia
Victory123
16 | FRIDAY, APRIL 1, 2011
dealbook
Hedge funds discover Brazil’s appeal
Window on
Wall Street
AZAM AHM E D
NEW YORK Ten years ago, Goldman
Sachs proclaimed that Brazil was
among the new economic powerhouses.
Now, it is the next frontier for hedge
funds.
Looking to capitalize on fast-growing
Latin American economies, global
hedge fund managers have started to
descend on Brazil. The industry’s
biggest players are wooing top talent,
opening offices and buying local firms
— all part of a broader effort to expand
their investment reach.
Late last year, Highbridge Capital, a
J.P. Morgan unit, purchased a majority
stake in Gávea Investimentos, a top
Brazilian hedge fund. Brevan Howard,
one of Europe’s largest hedge funds,
has set up shop in São Paulo. The first
Hedge Fund Brazil Forum, an industry
conference held this week, drew hun-
dreds of attendees, including represen-
tatives from major hedge funds like
Paulson & Co. and S.A.C. Capital Ad-
visors.
In all, hedge fund assets devoted to
Latin America rose 75 percent in 2010,
to $21.4 billion, according to data from
Hedge Fund Research.
‘‘Latin America suffered because it
was always believed that ‘Brazil is the
man of the future and always will be,’’’
said Marko Dimitrijevi, founder of
Everest Capital, an emerging-market
hedge fund based in Florida. ‘‘But it
looks like the future is now.’’
The strategy follows a well-worn
playbook for hedge funds. Just as firms
moved into Hong Kong to gain entry to
the lucrative mainland Chinese market
a decade ago, they are using Brazil as a
beachhead for the rest of Latin Amer-
ica. The Hedge Fund Association
planted an official industry flag Wed-
nesday, with the announcement that it
was opening a regional chapter in the
market.
The appeal is obvious. While many
developed countries have sputtered
amid weak economic growth, Brazil has
continued to thrive, given its rich re-
serve of natural resources and growing
middle class. Last year, the Brazilian
gross domestic product increased 7.5
percent, helping to catapult Brazil
ahead of Britain and France to become
the fifth-largest economy in the world
last year, after the United States, China,
Japan and Germany.
Brazil is also a standout among de-
veloping countries. Money has poured
into China and the rest of Asia, prompt-
ing fears that the region is a bubble
Vodafone will buy Essar’s stake for $5 billion, raising its exposure in the thriving market.
Vodafone and Essar end
dispute over India venture
PARIS
BY CHRIS V. NICHOLSON
Vodafone, the giant British mobile phone
company, said Thursday that it would
pay $5 billion in cash for Essar Group’s
one-third stake of an Indian joint venture
owned by the two companies.
The deal will increase Vodafone’s ex-
posure to one of its most important and
fastest-growing markets.
‘‘We’re adding about three million
customers a month,’’ said Ben Padovan,
a Vodafone spokesman. ‘‘India has a
population of 1.2 billion, and penetration
is about 60 percent, so there’s a lot of
market share to go for.’’
The deal resolves many months of
conflict between the companies, as Es-
sar, a conglomerate with interests in
steel, power and shipping, has sought to
determine the value of its interest in the
venture, Vodafone Essar, and explored
the possibility of an initial public offer-
ing for its shares.
This year, the companies quarreled
over Essar’s plans to reverse list its
stake in the venture by merging some of
its shares into India Securities, a public
company — a deal that Vodafone argued
would have inflated the value of its
stake. A reverse listing is accomplished
by putting all or part of a private com-
pany into a public one, thus bypassing
an initial public offering.
Vodafone said it would exercise a call
option on 11 percent of the joint venture,
while Essar would exercise a comple-
Oscar Decotelli of Vision Brazil Investments said Brazil’s economic growth and opportunity for investment were still in their infancy.
‘‘Brazil is not just a
commodity story, but a very
strong domestic story.’’
ready to burst. Asia accounts for half of
hedge fund assets dedicated to emerg-
ing markets. By comparison, Latin
America represents 11 percent.
‘‘People were a lot more bullish on
Asian markets over the last two to
three years because everything
seemed to be going one way,’’ said
Anurag Bhardwaj, head of strategic
consulting at Barclays Capital, which is
set to publish a survey on investor sen-
timent this month. ‘‘Investors are look-
ing to other markets less correlated but
with good fundamentals, and Brazil def-
initely falls into that category.’’
Economic growth in Latin America
faces potential obstacles. While Brazil
has been strong coming out of the glob-
al economic crisis, analysts are becom-
ing increasingly concerned about infla-
tion. Goldman Sachs recently cut its
Brazilian growth forecasts for 2011 and
2012.
There are also worries of crowding in
the market, as more investors pile into
the region. With more money on the
LUKE MACGREGOR/REUTERS
mentary put for 22 percent of the shares.
The transaction is expected to be
completed by November, but it will not
affect Vodafone’s recently published net
debt figures, the company said.
Vodafone currently has a direct
equity interest in 42 percent of the com-
pany, and the Essar deal will give it 75
percent, Mr. Padovan said.
The rest is in the hands of entities con-
trolled by Indian partners.
Indian regulations prohibit foreign in-
vestors from owning more than 74 per-
cent of domestic telecommunications
companies, and Vodafone plans to re-
duce its stake by about 1.3 percent to re-
main within the law.
Vodafone has also been embroiled in a
tax dispute regarding its initial stake in
the joint venture, which it acquired in
2007 from the Hutchison Telecommuni-
cations International, controlled by the
Hong Kong billionaire Li Ka-shing.
The case is to come before the Su-
preme Court of India in July and could
leave the company on the hook for up to
$2.5 billion in capital gains, in a deal
where, paradoxically, it was the buyer.
Last May, Vodafone took a $3.5 billion
write-down on the value of its Indian
business, which has been battered by
fierce competition from rivals like Bharti
Airtel and Reliance Communications.
The Indian mobile telecommunica-
tions market is the second-largest in the
world, after China’s, and one of the fast-
est growing. But the sector is crowded,
with more than a dozen companies vying
for customers and driving down prices.
hunt, opportunities for great returns
could shrink.
‘‘What’s the famous saying? ‘If the
taxi driver is talking about an invest-
ment, you know it’s time to sell,’’’ said
Oscar Decotelli, partner at Vision Brazil
Investments, a firm based in São Paulo.
But Mr. Decotelli said he believed
that Brazil’s growth and opportunity
were still in their infancy and that the
new institutional players would help
the market evolve.
‘‘In the past five years, about 34 mil-
lion Brazilians entered the middle
class,’’ he said. ‘‘This for a population of
200 million is very, very significant.
Brazil is not just a commodity story, but
a very strong domestic story.’’
Hedge funds are looking to well-
placed executives to help them navi-
gate the new territory. As in Asia, firms
are tapping high-profile names to lead
their efforts, giving them much-needed
political and business contacts in the
country.
When Highbridge purchased a ma-
jority stake in Gávea Investimentos
last year, the deal came with the firm’s
marquee founder, Arminio Fraga, the
former president of the Central Bank of
Brazil. Brevan Howard hired Mario
Mesquita, former deputy of the coun-
Sudden exit for an heir apparent at Berkshire
NEW YORK
Questions are raised
about executive’s stake
in target of acquisition
BY BEN PROTESS
AND SUSANNE CRAIG
David Sokol has abruptly resigned from
Berkshire Hathaway, the company run
by the billionaire Warren E. Buffett,
raising major questions about the future
stewardship of the conglomerate.
Mr. Sokol, 54, had long been considered
a leading candidate to take over from Mr.
Buffett, now 80. The question of succes-
sion has been a concern to Berkshire’s in-
vestors and the many avid followers of
Mr. Buffett, who has said he has no plans
to step aside anytime soon. The company
has given few clues about its plan other
than to say it has identified four current
Berkshire managers who could become
the next chief executive. Now that game
plan may have to be tweaked.
The resignation also raises deeper
questions about Mr. Sokol’s stake in a
company that Berkshire is acquiring.
In a statement Wednesday announ-
cing the departure, Mr. Buffett said that
Mr. Sokol had bought thousands of
shares in the company, Lubrizol, a
maker of lubricants, two months before
Berkshire announced a $9 billion deal
for the company. Shares of Lubrizol
have risen 27 percent since the deal was
announced two weeks ago.
Rising inflation and Portugal’s woes complicate European recovery
ECONOMY, FROM PAGE 14
Carsten Brzeski, an analyst in Brus-
sels for ING, said the data ‘‘again illus-
trated the German economy’s main di-
lemma: While the labor market remains
the showcase of the recovery, private
consumption is still sluggish.’’
The strong job market is only gradu-
ally lifting consumption because many
of the positions created pay low wages,
while higher energy prices have
dampened spending, he said.
The latest data have solidified expec-
tations that the European Central Bank
next week will raise borrowing costs for
the euro area, given that inflation is rid-
ing well above its comfort zone of just
below 2 percent. Analysts at Barclays
Capital said that there was also a grow-
finance companies business
THOMAS LEE/BLOOMBERG NEWS
try’s central bank, to run its new re-
search operations in Brazil.
The expansion into the region is also
about tapping into newfound wealth as
a source of investor money. In April
2010, Morgan Stanley opened a hedge
fund office for its Latin American cli-
ents in São Paulo.
In some ways, hedge funds are taking
a more measured approach than in the
past. After rushing into the Asian mar-
ket, many funds had to fold their opera-
tions in Hong Kong and Singapore as
returns slumped during the global fi-
nancial crisis.
‘‘Some people built too much too fast
in Hong Kong, so as a general matter,
they are going to approach Brazil with
more of a ‘Hey, let’s try this out’ rather
than ‘Let’s put 16 people on the ground
right away,’’’ said Daniel Hunter, a part-
ner at the law firm Schulte Roth & Zabel.
‘‘All I can tell you is that there is def-
initely a desire in parts of the hedge
fund space to find out what’s going on
in Brazil and find out how to tap into it,’’
he added.
ONLINE: DEALBOOK
Read more about deals
and the deal makers.
nytimes.com/dealbook
Mr. Sokol had pitched the acquisition
to Berkshire’s board.
‘‘Neither Dave nor I feel his Lubrizol
purchases were in any way unlawful,’’
Mr. Buffett said in the statement. ‘‘He
has told me that they were not a factor
in his decision to resign.’’
Yet the disclosure raises questions
about the timing of Mr. Sokol’s share
purchases — and whether he may face
any legal repercussions.
Mr. Sokol could not be reached for
comment. But on Thursday he said on
CNBC that if he had it all to do again, he
JONATHAN FICKIES/BLOOMBERG
David Sokol’s resignation was a surprise.
would have invested in Lubrizol for him-
self and not passed the recommendation
on to Mr. Buffett, Reuters reported from
New York. He said he did not expect Mr.
Buffett to want to buy the company and
was surprised at how quickly Mr. Buf-
fett moved to make a deal. During the in-
terview, Mr. Sokol insisted he never had
any inside information on Lubrizol and
that he bought the shares solely as a
good investment for his family.
ing expectation that such an increase
might be repeated.
Chiara Corsa, an economist at Uni-
Credit Bank in Milan, said euro zone in-
flation was likely to pick up throughout
the summer, before starting to decline
at the end of the year. UniCredit expects
average inflation of 2.6 percent in 2011
and 2 percent next year.
In Lisbon, the national statistical of-
fice said that the Portuguese budget
deficit last year was 8.6 percent of gross
domestic product, well above the target
of 7.3 percent. Fernando Teixeira dos
Santos, the finance minister, said that
the difference stemmed from new E.U.
accounting rules, and not from unrepor-
ted items, Reuters reported.
He added that the impact on public ac-
INTERNATIONAL HERALD TRIBUNE
The price
of punishing
the creditors
James
Saft
IN S IDE T H E M A RK E T S
It looks just about possible that credit-
ors are going to be paying something
like their share of the euro zone debt
disaster after all.
This could be a little patch of justice
in an unfair world, but like most justice
it promises long-term benefits but
short-term pain, both for those dis-
pensing and receiving it.
First, people with money and a
choice are already voting with their
feet, choosing not to lend to the ailing
governments on Europe’s periphery.
Second, some of these creditors to
Ireland, Greece and Portugal and their
banks are very likely to find that their
share of the damage exceeds their cap-
ital, an inconvenient reality for both the
banks involved and the sovereign hosts
who will have to pick up the pieces.
The E.U. summit meeting last week
ended with a set of policies that told
creditors that their heads would be on
the block when the European Stability
Mechanism, a bailout conduit, kicked
in.
All European government bonds is-
sued beginning in July 2013 will include
a provision that makes buyers vulner-
able to forced extensions of the bonds,
reductions in interest rates and, ulti-
mately, write-downs of principle in the
event of a crisis.
Once the European Stability Mechan-
ism takes effect, garden-variety lenders
like banks and pension funds will be
subordinated, meaning the government
bailout fund gets its money back first.
Countries that want access to the fund
may require a debt restructuring, a po-
lite term for a partial default.
While that may be just — and is politi-
cally expedient for the politicians trying
to sell the bailout back in Berlin and Par-
is — it is also the equivalent of ringing a
fire alarm in a crowded theater. Every-
one is going to head for the exits. Stan-
dard & Poor’s downgraded Portugal and
Greece, citing the new rules, this week.
There is every reason to expect that Ire-
land will not be far behind.
Credit spreads between countries
He also said he had on other occasions
invested in companies that he suggest-
ed Mr. Buffett buy, noting as one ex-
ample a bank that Mr. Buffett did not ul-
timately acquire.
He also said that other Berkshire ex-
ecutives had in the past held stock in
companies that they then identified for
investment or acquisition, citing the ex-
ample of the Berkshire vice chairman
Charlie Munger owning a stake in BYD,
the Chinese automaker, before suggest-
ing it for an investment.
The disclosure about Mr. Sokol’s
stake in Lubrizol appears to be a rare
mark on Berkshire’s squeaky-clean im-
age. Meyer Shields, an analyst who fol-
lows Berkshire at the brokerage firm
Stifel Nicolaus, said Mr. Sokol’s depar-
ture went ‘‘deep into the question’’ of
Berkshire’s culture. ‘‘This is a company
that has spent a lot of energy building its
reputation, and as a result it makes it
more vulnerable to news like this.’’
Still, regulators have not announced
any plans to scrutinize Mr. Sokol’s shares
in Lubrizol, and he has not been accused
of any wrongdoing. A spokesman for the
U.S. Securities and Exchange Commis-
sion, which investigates allegations of in-
sider trading, declined to comment.
Mr. Sokol’s resignation shocked some
Berkshire Hathaway employees, ac-
cording to people at the company who
were not authorized to speak publicly.
Even Mr. Buffett acknowledged that Mr.
Sokol’s statement was ‘‘unusual.’’
The departure immediately recasts
the field of candidates in the race to be
the next chief executive of Berkshire.
counts would be limited to 2010 and that
the 2011 budget goal would not be at risk.
He also said that the caretaker govern-
ment would have enough funds to meet
its obligations until a new government
took office.
Yields on Portuguese government
bonds pushed to fresh records as in-
vestors bet on a near-term bailout. The
benchmark 10-year issue rose 0.3 per-
centage point, to 8.2 percent. The yield
on the two-year note shot up 0.7 point,
showing that high returns were being
demanded for holding Portuguese pa-
per of all maturities. Yields on Spanish
and Irish debt also climbed.
And the French statistics agency re-
ported Thursday that the country had a
narrower budget deficit of 7 percent of
....
WITH
viewed as safe and those considered
risky have widened in a self-reinfor-
cing spiral that makes taking emer-
gency help more likely, which in itself
is cause for yet more selling of govern-
ment bonds.
Don’t get me wrong — people who
lent money in an attempt to cash in on
the moral hazard trade deserve their
losses, as do earlier lenders who failed
to do their due diligence. But I can’t
help feeling this will spin out of the orbit
of burden-sharing and into something
more chaotic. German taxpayers also
seem to think this is looking like a ‘‘be-
careful-what-you-wish-for’’ moment.
New stress test results released
Thursday showed that four Irish banks
needed to raise an additional ¤24 bil-
lion, or $34 billion, to cover problem
real estate loans, increasing the total
bill for bailing out Ireland’s lenders to
about ¤70 billion.
That is a staggering amount, and giv-
en that austerity will only further erode
the value of the assets Irish banks have
lent against, there is no guarantee that
that will be where it ends.
Ireland’s new government appears
to be taking a harder line about requir-
ing lenders to Irish banks to take a por-
tion of the losses. Subordinated credit-
ors are sure to have their loans
restructured, and senior creditors may
well face losses, too.
To be clear, it is right that the banks
that fed the Irish banking beast with
easy loans take losses as a means of
easing the hardships that are falling on
the Irish people. Ire-
Like most land’s banking sys-
tem, like Iceland’s
justice, it
and arguably Brit-
promises ain’s, was way out of
long-term proportion to the size
benefits but of its economy.
short-term This may be a ne-
pain. gotiating ploy by the
Irish government, as
a substantial write-
down of Irish bank debts would spread
losses — and, more important, fear —
across Europe’s banking system.
A rescheduling by Ireland, Greece or
Portugal would be highly disruptive for
global markets, and you can bet that
the European Central Bank and the
European Union are under tremendous
pressure to make sure it does not hap-
pen.
There is, though, a sense that there is
no political will or capacity to bring
about a solution that keeps Greece, Ire-
land and Portugal all on board and can
also be sold to the German electorate.
It has been a long first three months
of the year. Egypt, Japan and Libya
have distracted attention, while the
long-running and procedural nature of
the euro zone’s problems make them a
pleasure to ignore.
Things could move rapidly in the
next week, and perhaps upend wide-
spread expectations of an E.C.B. in-
terest rate increase April 7.
James Saft is a Reuters columnist.
One leading candidate is Ajit Jain, the
head of the company’s reinsurance op-
erations. In his February letter to in-
vestors, Mr. Buffett praised a number of
other Berkshire managers, including
Tad Montross of General Re, Matthew
K. Rose at Burlington Northern Santa
Fe and Tony Nicely of Geico.
In late November, Berkshire hired
Todd Combs, manager of a hedge fund in
Connecticut, as a potential successor to
Mr. Buffett as chief investment officer.
(Mr. Buffett has said the plan is to divide
the chief executive and investment jobs.)
Mr. Buffett praised Mr. Sokol, saying
his ‘‘contributions have been extraordi-
nary.’’
On Wednesday, Mr. Buffett said that
he had not asked for Mr. Sokol’s resig-
nation, which had been a ‘‘total surprise
to me.’’ Mr. Sokol had twice before men-
tioned resigning, but Mr. Buffett was
able to persuade him to stay, he said.
Mr. Buffett said he had spoken with
Mr. Sokol the previous day and had ‘‘re-
ceived no hint of his intention to resign.’’
Mr. Buffett said he had not attempted to
talk Mr. Sokol out of the decision.
Mr. Sokol told Mr. Buffett: ‘‘As I have
mentioned to you in the past, it is my
goal to utilize the time remaining in my
career to invest my family’s resources
in such a way as to create enduring
equity value.’’
The resignation, however, comes un-
der a cloud of suspicion about the stake
in Lubrizol.
Geraldine Fabrikant and Edward Wyatt
contributed reporting.
G.D.P. last year, down from 7.5 percent
in 2009, a level that fell beneath the gov-
ernment’s own target, which had ini-
tially stood at 8.5 percent.
President Nicolas Sarkozy, who was
traveling in Asia, was quick to claim
credit for the better-than-expected per-
formance in France, which is likely to
feature as a central theme in the 2012
presidential election. His office issued a
statement saying that the data con-
firmed the effectiveness of a government
strategy that was based on economic
change and strict spending control.
The ratings agency Fitch was less op-
timistic. It cut its G.D.P forecast for the
euro zone by 0.4 percentage point to 1.2
percent for this year, and by 0.3 percent-
age point to 1.8 percent for 2012.
Victory123
....
THE GLOBAL EDITION OF THE NEW YORK TIMES FRIDAY, APRIL 1, 2011 | 17

companies markets business WITH

World markets
United States
Thursday, March 31
Last Chg 12 mo.%
Interest rates
10-year govt. Ask yield Chg 12 mo. ago 3-month gov’t Ask yield Chg 12 mo. ago
IN THE NEWS ✴ WORLD BUSINESS
U.S. Dow Jones indus. 12,354.05 +3.44 +13.3 Britain 3.678% +0.025 3.975% Britain 0.658% +0.006 0.537%
U.S. S.&P. 500 1,328.67 +0.41 +13.2 France 3.697 +0.021 3.435 France 0.727 +0.016 0.289
U.S. S.&P. 100 594.29 –0.03 +10.7 Germany 3.351 +0.014 3.115 Germany 0.565 –0.029 0.190
U.S. Nasdaq composite 2,778.14 +1.35 +15.2 Japan 1.242 +0.008 3.115 Japan 0.118 +0.001 n.a.
U.S. NYSE composite 8,423.49 +6.80 +12.9 United States 3.455 –0.017 3.857 United States 0.095 –0.008 0.153
U.S. Russell 2000 841.80 +1.43 +23.1
1-year gov’t Benchmark rates Last Latest chg NEW YORK
The Americas
Britain 0.634% –0.041 0.633% Britain (bank) 0.50% –0.50 (Mar. 5) 0.50%
Mexico IPC 37,413.65 +203.38 +12.0
France 1.287 +0.016 0.573 Canada (overnight) 1.00 0.25 (Sep. 8) 0.25 BAILED-OUT LENDER PLANS RETURN
Canada S.&P./TSX 14,137.37 +53.79 +17.4
Germany 1.169 +0.028 0.505 Euro zone (refinancing) 1.00 –0.25 (May. 12) 1.00
Brazil Bovespa 68,499.09 +502.03 –2.1
Japan 0.150 +0.009 0.505 Japanese (overnight) 0.109999401.10 (Jun. 25) 0.10
TO MARKET WITH $100 MILLION I.P.O.
Argent. Merval 3,373.90 –2.54 +40.3
United States 0.256 –0.012 0.390 United States (prime) 3.25 –0.75 (Dec. 16) 3.25
Chile Stock Market select 4,605.04 +10.85 +22.4
Ally Financial, the auto and mortgage
Europe and Middle East Futures Cross rates lender in which the U.S. government
Euro zone DJ Stoxx 50 2,910.91 –25.53 –1.0
Britain FTSE 100 5,908.76 –39.54 +4.2 Agricultural City Units Delivery Last Chg
One
One One
Swiss Can.
has a majority stake, on Thursday filed
Germany DAX 7,041.31 –15.84 +14.6 Corn Chicago $/bu May 6.93 +0.30
France CAC 40 3,989.18 –35.26 unch. Cotton N.Y. $/lb. May 2.00 +0.07
$1 €1 £1 ¥100 ruble franc doll. to raise up to $100 million in an initial
Italy FTSE MIB 21,727.44 –273.75 –5.5 Soybeans Chicago $/bu May 14.14 +0.42
Australia
Brazil
0.964
1.626
1.370
2.309
1.551
2.614
1.163 0.034
1.960 0.057
1.052 0.995
1.774 1.677
public offering.
Spain IBEX 35 10,576.50 –155.80 –3.7
Switzerland SIX 6,357.55 –40.87 –7.5
Wheat Chicago $/bu May 7.64 +0.37
Britain 0.622 0.883 - 0.750 0.022 0.678 0.641 U.S. taxpayers bailed out Ally several
Rice Chicago $/cwt May 13.98 +0.20
Sweden OMX 30 1,134.87 –3.19 +11.0 Cocoa N.Y. $/ton May 2,951.00 –36.00
Canada 0.969 1.376 1.559 1.168 0.341 1.058 - times in 2008 and 2009, investing more
China 6.548 9.299 10.530 7.893 0.166 7.144 6.754
Russia RTS
Czech Rep. Prague Stock Exch.
2,041.26
1,257.30
+5.34
–3.50
+30.7
+3.7
Coffee N.Y. $/lb. May 2.66 +0.01
Denmark 5.248 7.454 8.442 6.327 0.185 5.727 5.414
than $17 billion in the company, which
Sugar N.Y. cts/lb. May 27.07 –0.14
Israel TA-25 1,320.13 –0.31 +7.1
Orange juice N.Y. cts/lb. May 162.35 +0.85
Euro zone 0.704 - 1.132 0.849 0.025 0.768 0.726 was formerly known as GMAC. The fil-
Asia
Metals, energy
India
Japan
44.500
82.920
63.350
117.76
71.735
133.34
53.793 1.570 48.685 45.895
- 2.917 90.470 85.550
ing did not specify the number of shares
Japan Nikkei 225 9,755.10 +46.31 –12.1
H.K. Hang Seng 23,527.52 +76.09 +10.1 Aluminum London $/m. ton 3 mo. 262,900 –1900 Mexico 11.889 16.883 19.117 14.300 0.000 12.971 12.262 to be sold, the price range, or the ex-
Australia All Ordinaries 4,928.61 +15.93 unch. Copper N.Y. cts/lb. May 430.95 +3.55 Russia 28.401 40.317 45.652 34.200 - 30.970 29.281 change on which the shares would trade.
China Shanghai composite 2,928.11 –27.66 –6.4 Gold N.Y. $/tr.oz. June 1,438.60 +13.70 Singapore 1.260 1.790 2.026 1.519 0.044 1.375 1.300
S. Korea Kospi 2,106.70 +15.32 +23.9 Palladium N.Y. $/tr.oz. June 763.50 +5.40 S. Africa 6.762 9.587 10.856 8.100 0.238 7.365 6.963
The I.P.O. will be the latest in a hand-
India S.&P. CNX Nifty 5,787.30 –0.35 +10.0 Platinum N.Y. $/tr.oz. July 1,775.40 +1.30 S. Korea 1096.50 1557.14 1763.17 1321.70 38.577 1196.27 1130.90 ful of offerings by government-rescued
Silver N.Y. $/tr.oz. May 37.81 +0.29
Taiwan
Singapore
Taiex
Straits Times
8,683.30
3,105.85
+36.99
+10.53
+9.1
+5.9 Brent crude London $/bbl. May 117.17 +2.04
Sweden 6.295
Switzerland 0.916
8.937
1.301
10.126
1.473
7.586 0.222
1.105 0.032
6.869 6.493
- 0.945
companies that include General Motors,
Thailand SET 1,048.30 –2.37 +32.9 Light sw.crude N.Y. $/bbl. May 106.34 +2.07 Taiwan 29.400 41.740 47.275 35.400 1.036 32.070 30.317 which has already completed its offer-
Indonesia Jakarta composite 3,678.67 +37.70 +31.5 Natural gas N.Y. $/mln.BTUs 3 mo. 4.40 +0.05 U.S. - 1.420 1.608 1.206 0.035 1.092 1.032 ing, and American International Group, ANDREW BIRAJ/REUTERS

Exchange rates which is preparing a share sale of more Backlash A rally by members of the Islami Oikya Jote party in Dhaka, Bangladesh,
Major currencies $1 Chg. €1 Chg. £1 Chg. Asia (cont.) $1 Chg. €1 Chg. £1 Chg. The Americas $1 Chg. €1 Chg. £1 Chg.
than $10 billion for mid-May. (REUTERS) on Thursday. It has called a national strike Monday to protest equality for women.
Euro 0.704 –0.003 - - 1.132 –0.006 Singapore dollar 1.260 –0.002 1.790 0.008 2.026 –0.002 Argentine peso 4.053 0.005 5.755 0.035 6.517 0.012
Dollar - - 1.420 0.007 1.608 0.001 South Korean won 1096.50 –5.950 1557.14 –0.180 1763.17 –9.240 Brazilian real 1.626 –0.002 2.309 0.009 2.614 –0.004 MIL AN
Taiwan dollar 29.400 –0.080 41.740 0.110 47.275 –0.120 Canadian dollar 0.969 –0.002 1.376 0.004 1.559 –0.003
Pound 0.622 unch. 0.883 0.005 - -
Thursday that pretax profit fell 30 per- The divestiture is part of a broader
Swiss franc 0.916 –0.003 1.301 0.004 1.473 –0.003 Thai baht 30.240 –0.070 42.941 0.113 48.626 –0.082 Chilean peso 477.50 –4.350 678.05 –2.804 767.82 –6.513
GOVERNMENT RAISES DEFENSE
Yen 82.920 0.050 117.76 0.700 133.34 0.130
Europe
Mexican peso 11.889 –0.036 16.883 0.043 19.117 –0.048 cent to 3.54 billion Swedish kronor, or effort to refocus on the British market,
Asia Czech koruna 17.263 –0.086 24.513 –0.001 27.759 –0.121
Venezuelan bolivar 4.289 unch. 6.090 0.030 6.897 0.004 AGAINST FOREIGN TAKEOVERS $558 million, in the three months ended improve the company’s financial posi-
Australian dollar 0.964 –0.005 1.370 0.002 1.551 –0.005 Danish krone 5.248 –0.031 7.454 –0.002 8.442 –0.040 Middle East and Africa
Chinese renminbi 6.548 –0.008 9.299 0.039 10.530 –0.008 Hungarian forint 187.21 –0.930 265.84 –0.004 301.03 –1.307 Egyptian pound 5.957 –0.007 8.459 0.032 9.579 –0.005 The Italian government on Thursday February. Analysts’ average forecast tion and cut its pension deficit. At the
Hong Kong dollar 7.775 –0.008 11.041 0.043 12.502 –0.005 Norwegian krone 5.518 –0.057 7.836 –0.042 8.873 –0.086 Israeli shekel 3.474 –0.025 4.933 –0.011 5.586 –0.037 authorized the purchase of stakes in was 3.84 billion kronor. Sales were end of 2010, Taylor Wimpey had debt of
Indian rupee 44.500 –0.110 63.350 0.148 71.735 –0.202 Polish zloty 2.835 –0.006 4.026 0.011 4.559 –0.007 Saudi riyal 3.750 unch. 5.325 0.026 6.030 0.004
Indonesian rupiah 8705.00 –11.000 12361.1 45.392 13997.6 –8.972 Russian ruble 28.401 –0.121 40.317 0.030 45.652 –0.194 South African rand 6.762 –0.060 9.587 –0.050 10.856 –0.113 companies it considers strategic — in- broadly flat, at 24.5 billion kronor. about £654.5 million, or $1 billion.
Malaysian ringgit 3.025 –0.001 4.296 0.020 4.864 0.001 Swedish krona
Turkish lira
6.295
1.543
–0.023
–0.009
8.937
2.191
0.008
–0.002
10.126
2.481
–0.040
–0.013
cluding Parmalat, the dairy company in H&M, the world’s largest clothing Taylor Wimpey operates under the
Philippine peso 43.300 –0.100 61.486 0.162 69.626 –0.117
which a French rival has acquired a 29 chain after Inditex of Spain, said the Taylor Morrison brand in the United
World 100 The companies with the largest market capitalization, listed alphabetically by region. Prices shown are for regular trading. percent shareholding. drop was mainly due to its decision not States and Monarch in Canada.
A+‡ or −
‡ indicates stocks that reached a new 52-week high or low.
Finance Minister Giulio Tremonti will to pass on higher cotton costs and negat-
Company
U.S. Last
52-wk price range
Chg 12 mo.% Low Last ( ‡) High
Company (Country)
The Americas Last
52-wk price range
Chg 12 mo.% Low Last ( ‡) High
Company (Country)
Europe (cont.) Last
52-wk price range
Chg 12 mo.% Low Last ( ‡) High
be able to adopt measures ‘‘analogous to ive currency effects to shoppers. (REUTERS) NEW YORK
Abbott Laborat. 49.40 +0.44 –5.9 45.16 54.34 AmBev (BR) 45.26 –0.13 –72.7 42.30 244.98 Santander (ES) 8.19 –0.20 –17.8 7.30 10.79 those that exist in other European coun-
AIR FRANCE MAY DIVIDE ORDER
Amazon.com 180.8 +1.4 +32.4 108.6 191.3 Amer. Movil (MX) 34.38 +0.14 +9.3 30.11 36.33 Sberbank (RU) 106.7 –0.3 +25.3 64.3 109.6 tries’’ to acquire stakes in companies TAIPEI
Apple 348.5 –0.1 +47.8 224.8 363.1 Bradesco (BR) 33.25 +0.80 +3.0 28.11 37.10 Siemens (DE) 96.71 +0.40 +32.3 68.25 98.00
deemed strategic by the government, Air France-KLM Group, the biggest
AT&T 30.63 –0.08 +18.0 24.13 29.98 Ecopetrol (BR) 3,875 –5 +44.3 2,630 4,660 StatoilHydro (NO) 153.3 +0.5 +11.9 117.6 155.3 ACER CHIEF EXECUTIVE LEAVES
Bank of America 13.37 –0.08 –24.7 10.95 19.48 Itau Unibanco (BR) 38.62 +1.01 +0.2 32.11 43.53 Telefonica (ES) 17.67 –0.15 –0.3 14.88 19.60 according to a statement released after a European airline, might split an order
Berkshite Hath. 125,326 –2777 +2.3 104,950 131,300 Petrobras (BR) 32.46 +0.04 –17.4 26.68 40.59 Total (FR) 42.96 +0.04 +0.2 35.88 44.41 meeting of Prime Minister Silvio Ber- AFTER SHARES TAKE A DIVE for about 100 wide-body aircraft be-
Chevron 108.1 +0.1 +43.6 67.3 106.8 R. Bk of Can. (CA) 60.31 +0.15 +0.9 48.95 62.42 UBS Inv. Bk (CH) 16.48 –0.29 –3.6 14.02 18.93
Cisco Systems 17.18 –0.15 –35.5 17.00 27.57 Vale (BR) 47.26 +0.19 –4.6 37.50 53.41 Unilever (GB) 1,906 +7 –0.3 1,677 1,998
lusconi’s cabinet. Parmalat is considered Acer, the second-largest seller of per- tween Airbus and Boeing, the com-
Citigroup 4.43 –0.02 +8.4 3.63 5.13 Vodafone (GB) 177.8 –2.1 +16.8 129.5 181.6 strategic, according to the statement. sonal computers, replaced its chief ex- pany’s secretary general said Thursday.
Coca-Cola 66.53 +0.49 +21.3 50.03 65.77 Middle East and Africa Volkswagen (DE) 114.5 –0.9 +68.5 66.1 136.9
Lactalis, a French dairy company, ecutive Thursday, barely a week after A decision on a possible order for Air-
ConocoPhillips 80.79 +0.10 +57.6 48.82 80.24 Saudi Basic In. (SA)105.3 closed +5.8 76.8 112.3
Exxon Mobil 84.40 –0.09 +25.9 56.57 87.07 Asia bought the Parmalat shares from a the company gave a downbeat outlook bus A350 and Boeing 787 passenger
General Electric 20.04 –0.07 +9.5 13.88 21.52 Europe Agric. Bank (CN) 2.76 +0.01 –95.9 2.53 2.95 group of foreign investors who had been that wiped more than $1 billion off its planes will probably come ‘‘before the
Goldman Sachs
Google
159.1
586.9
unch.
+5.1
–7.2
+3.6
131.1
436.1
184.9
639.6
A-B InBev (BE) 40.20
AstraZeneca (GB) 2,892
–0.51
–8
+6.7
–2.3
35.70
2,811
45.85
3,380
Bank of China (CN) 3.33
BHP Billiton (AU) 46.56
–0.03
+0.95
–23.8
+4.8
3.17
36.28
4.37
47.36
pressuring the Parmalat chief executive, market value in four days. end of the year, maybe during the sum-
Hewlett-Packard 41.12 –0.18 –22.8 38.00 54.52 BASF (DE) 61.03 +0.57 +33.5 40.71 61.73 CBA (AU) 52.40 –0.13 –7.7 47.47 59.83 Enrico Bondi, to use a ¤1.4 billion, or $2 Acer said Gianfranco Lanci would mer,’’ Bertrand Lebel said. The need for
IBM 163.6 unch. +27.0 121.9 166.1 BG Group (GB) 1,559 –6 +37.8 980 1,539 CCB (HK) 4.97 –0.06 –13.3 4.51 5.73 billion, war chest to make acquisitions or leave the company immediately due to delivery slots from the manufacturers
Intel 20.06 –0.40 –10.2 17.67 24.22 BNP Paribas (FR) 51.61 –1.69 –11.5 41.48 58.97 China Life (CN) 20.99 –0.11 –26.9 20.77 29.28
J&J 59.37 –0.01 –8.5 57.02 66.03 BP (GB) 456.3 –2.2 –26.9 300.3 656.2 China Mobile (HK) 71.65 –0.20 –4.7 69.30 84.35
pay out bigger dividends. (BLOOMBERG) differences over the strategy needed to affects the timing, he said. Neither mod-
JPMorgan Chase 46.30 –0.15 +3.9 35.63 48.00 Brit. Am. Tob. (GB) 2,529 +8 +10.6 1,964 2,521 China Shenhua (HK)29.09 +0.11 –0.8 20.75 30.04 counter the success of tablet computers, el has yet entered service. (BLOOMBERG)
McDonald’s
Merck
76.32
33.07
+0.51
–0.24
+13.5
–12.2
65.87
31.08
80.34
38.50
Daimler (DE)
EDF (FR)
49.85
29.22
+0.02
–0.43
+44.2
–28.4
34.40
27.46
58.46
41.96
CNOOC (HK)
ICBC (CN)
19.60
4.47
+0.14
–0.05
+51.7
–11.0
11.58
3.96
19.36
5.02
ALGIERS which has eaten into Acer’s profits. The
Microsoft 25.41 –0.20 –14.6 23.01 31.39 ENI (IT) 17.33 –0.07 –0.5 14.61 18.42 NTT (JP) 3,735 unch. –4.5 3,435 4,130 Acer chairman, J.T. Wang, will take SANTIAGO
ALGERIAN OFFICIAL SAYS TAX LAWS
Occidental Petrol. 104.9 +1.1 +24.5 72.2 107.4 Gazprom (RU) 229.1 –0.2 +34.4 143.0 225.5 NTT DoCoMo (JP)146,200 –2600 +2.9 131,500 158,900 over as acting chief executive.
Oracle 33.33 +0.28 +30.5 21.46 33.68 GDF Suez (FR) 28.75 –0.05 –0.7 22.80 29.94 PetroChina (HK) 11.90 –0.04 –7.9 9.94 13.23 DETER FOREIGN ENERGY FIRMS LATIN AMERICAN BOURSES TO JOIN
P&G 61.78 –0.20 –3.0 59.34 66.70 Glaxo (GB) 1,194 –1 –6.2 1,095 1,318 Ping An Ins. (HK) 49.46 –0.53 –2.7 44.28 66.98
Acer, second only to Hewlett-Packard
Pepsico 65.04 –0.01 –2.6 60.77 68.11 HSBC (GB) 644.7 –11.3 –4.8 599.0 733.2 Reliance Ind. (IN) 1,039 +6 –4.5 896 1,129 The lackluster interest from major en- in the PC market and a dominant force Chile, Peru and Colombia have finished
Pfizer 20.48 +0.14 +18.7 14.14 20.38 L’Oreal (FR) 82.20 –0.84 +4.7 71.37 89.50 Rio Tinto (AU) 84.75 +0.47 +6.9 61.70 88.68 ergy companies in Algerian oil and gas in the low-cost notebook segment, said testing the integration of their stock ex-
Philip Morris 65.55 –0.15 +24.9 43.17 64.35 Lloyds Bank. (GB) 58.70 +0.15 –4.3 50.52 78.40 Samsung El. (KR)932,000 +6000 +14.5 740,000 1,010,000
Qualcomm 54.61 +0.10 +29.6 31.96 59.58 LVMH (FR) 111.7 +0.1 +28.6 79.5 128.0 Sinopec Corp (HK) 8.78 +0.05 –11.9 7.33 10.15 tracts is due to the country’s tax rules, it would now focus on the tablet sector changes and will begin live trading in the
Schlumberger 94.07 +0.42 +49.2 51.75 95.04 Nestle (CH) 52.65 –0.50 –2.5 49.14 56.60 Toyota Motor (JP) 3,350 +20 –11.1 2,812 3,910 a senior energy official said Thursday. as well. (REUTERS) next three months, the chief executive of
United Technol.
UPS
84.76
74.57
+0.53
+0.07
+14.3
+15.6
63.22
56.76
85.21
76.47
Novartis (CH) 49.82
R. Bk of Scot. (GB)41.20
–0.28
+0.10
–12.6
–6.5
48.10
37.67
58.60
57.41
Westpac Ban. (AU) 24.33 +0.06 –13.5 20.79 28.25
In a licensing round this month, Alge- the Santiago bourse said Thursday.
Verizon 38.60 +0.14 +23.6 26.49 37.67 R. Dutch Shell (GB)2,264 +16 +17.4 1,636 2,268 ria awarded only 2 out of 10 oil and gas The chief executive, José Antonio
Wal-Mart 52.19 –0.17 –6.7 48.00 57.57 Roche (CH) 131.2 –0.6 –23.2 125.3 177.5
Data are at 1800 U.T.C. Prices are in local currencies. permits offered, raising questions about Martínez, also said at the Reuters Latin
Walt Disney 43.17 –0.18 +23.0 31.38 44.07 Rosneft (RU) 260.0 –4.4 +10.5 183.6 274.2
Wells Fargo 31.69 –0.22 +2.8 23.25 34.10 Sanofi-Aventis (FR) 49.48 –0.25 –10.7 44.57 56.33 Source: Reuters Custom Flow solutions
whether it has enough new projects in American Investment Summit in Santi-
the works to maintain output. The bid ago that his exchange’s integration
round was the third in a row to generate with the São Paulo bourse in the first
little interest among investors. half of next year would open Chile to
‘‘We know that they are unhappy global derivatives trading. (REUTERS)

Globalnews,delivereddaily with our tax system,’’ said the energy

official, who asked not to be named be-
cause he was not authorized to speak to
NEW YORK
TRADING SNARLED IN NEW FUNDS
Subscribe for a low cost, 16-week trial period and benefit the media on the subject. (REUTERS)
Nasdaq OMX said it would cancel
from daily home or office delivery and a free vacation STOCKHOLM NELSON CHING/BLOOMBERG trades in new exchange-traded funds
forwarding service. Gianfranco Lanci had headed Acer since 2008. that Thursday saw their share prices
H&M’S PROFIT HIT BY DECISION
plunge in activity reminiscent of the
Call 16-week
TO HOLD STEADY ON PRICES
BUILDER EXITING NORTH AMERICA
‘‘flash crash’’ of May 2010.

00800 44 48 78 27 (and quote code WK16)

Hennes & Mauritz, the world’s No.2 The E.T.F.’s, sponsored by Focus-
trial offer fashion retailer, missed first-quarter Taylor Wimpey, the British home build- Shares, started trading Wednesday and
profit and sales forecasts, raising er, announced Thursday that it would plunged on Thursday, with some losing
Or visit subs.iht.com/trial doubts over its strategy of holding sell its North American business for 98 percent of their value. Nasdaq OMX
down prices despite rising cotton costs $955 million to a group of private equity said it would cancel the trades, all made
If you cannot access the toll free number shown, please call +33 1 41 43 93 61. Offer valid for new subscribers only, expires December 31, 2011 and unfavorable exchange rates. investors that includes TPG Capital and in a two-minute window, calling them
The budget clothing chain said Oaktree Capital Management. ‘‘clearly erroneous.’’ (REUTERS)

For online listings and past performance visit

International Funds March 31, 2011
www.morningstar.com/Cover/Funds.aspx
For information please contact Amy Tobias | Fax +44 207 061 3529 | e-mail atobias@nytimesglobal.com

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w ’MOpMjhen µJOZ »Z[m ³· ½ºº Ý çèáßïãã
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iOZ\ p PJp]eiejm e[mjQj[mj[M pmIeNZO ojiZOj e[IjNMe[hï Gjj^]EÒ %\" ñ \Z[Mf]EÒ %e" ñ MGenj \Z[Mf]Eï

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Victory123
....
18 | FRIDAY, APRIL 1, 2011 INTERNATIONAL HERALD TRIBUNE

business WITH
EVEN CATALONIA FALTERS
IN SPANISH FISCAL CRISIS
PAGE 14 | BUSINESS FRONT

STOCK INDEXES
REUTERS BREAKINGVIEWS
Regulators
Q.R.M.’s, as they are called, had to be investors should have monitored the
very conservative, with 20 percent quality of the loans — just as Fannie +10%
down payments and strict limits on and Freddie should have — but they

are missing
leverage. That is good. If mortgage did not. Lower rungs of those securities
loans do not meet the highest stan-
dards, somebody involved in making
would take losses if there were a lot of
defaults, but senior portions were
0 Propping up a caja is not the answer in Spain

the point
the loan should be on the hook if a lot of
the loans blow up.
Much of the criticism of the proposed
new rules seems to assume that there
will be no mortgage loans made at all if
lenders have to keep some of the risk.
‘‘By mandating a 20 percent down
payment on qualified residential mort-
gages, the administration and U.S. reg-
ulators are excluding those without
huge cash reserves — which consti-
Floyd tutes most first-time home buyers and
many middle-class households — from
Norris a chance to buy a home,’’ said Robert F.
Nielsen, a home builder from Nevada
and president of the National Associ-
H I GH & LO W F INA N CE ation of Home Builders.
Regrettably, some consumer advo-
cates have joined in that chorus.
NEW YORK If you want to get the U.S. What should happen, said Sheila C.
government out of financing normal Bair, the chairwoman of the Federal
home mortgages, you have to find a Deposit Insurance Corp. and one of the
way to bring in private capital — and regulators involved in the proposal, is
on terms that do not make govern- that ‘‘Q.R.M. loans will be a small part
ment-guaranteed mortgages a clearly of the market,’’ and other loans will be
superior product. made by lenders who do have ‘‘skin in
That fact was central to the propos- the game,’’ or a per-
als of the administration of President sonal stake. The pro-
Giving the
Barack Obama to fix the housing fi- posal asks for discus-
government-
nance market a couple of months ago, sion of ways that can
but it seems to have been forgotten by run mortgage be accomplished
arms another
the collection of regulators that this
week proposed rules on when banks competitive
without banks tying
up excessive
will not have to retain risks for loans edge is exactly amounts of capital.
they make. what they ‘‘Economic incen-
Inadvertently perhaps, they gave don’t need. tives,’’ she said, ‘‘are
Fannie Mae and Freddie Mac, the gov- the best check
ernment-run mortgage arms, another against lax under-
competitive advantage. That is exactly writing standards.’’
the opposite of what needs to be done. Consider how absurd this debate
The proposals are generally good. would have seemed a few decades ago.
They require lenders to maintain some Then you got a mortgage loan from a
risk when they securitize all but the bank, which stood to profit if you made
safest mortgages. That is what the your payments and risked loss if you
Dodd-Frank law required, and for good did not. Imagine arguing that no bank
reason. One of the big problems lead- would lend if it had to take a risk. What
ing up to the crisis was that many business, people would have asked, did
lenders believed they could profit by banks think they were in?
making loans while leaving it to others Over the decades banks got out of
to suffer if the loans went bad. the habit of actually owning loans.
But where is that risk to be main- They sold them to Fannie Mae and
tained? The law says lenders or secur- Freddie Mac, which then issued securi-
itizers, and leaves it up to an unwieldy ties to private investors. Those in-
group of regulators to fill in the details. vestors were protected against loss,
The regulators are also supposed to de- and therefore would accept relatively
cree just how safe a mortgage has to be low returns. The system helped make
to be deemed a ‘‘qualified residential mortgage loans less expensive than
mortgage’’ that does not need to have they otherwise would have been.
the lender maintain some of the risk. A private-label mortgage security
It was those issues that the regula- market also developed. There, banks
tors addressed this week. They decided put together pools of mortgages and
that qualified residential mortgages, or sold interests in them to investors. The
deemed completely safe by bond rating The break-up of Banco Base has put the with the small but healthy Cajastur run-
agencies that assumed losses would –10 Bank of Spain on the spot. The collapse ning the show, while the Caja Mediter-
never rise to those levels. of the merger involving four savings ráneo chairman stayed on as nonexec-
This worked for so long that it be- banks has highlighted the limits of utive chairman. When it became clear
came possible to package together a –20 Spain’s strategy of combining healthy that the state was likely to become a
bunch of those clearly risky portions of and weak lenders. The central bank has shareholder in the bank, others decided
mortgage-backed securities and sell 2010 2011
little choice but to nationalize the weak- they wanted out.
new securities backed by them. These est savings bank, Caja Mediterráneo. The Banco Base fiasco should not af-
were called collateralized debt obliga- UNITED STATES S&P 500 52-week Alarm bells went off this week when fect Spain’s 16 other Caja mergers, all of
1,328.65 +0.39 +13.2%
tions, and the top tier of those also Banco Base said it was seeking ¤2.8 bil- which have been completed. But it
were deemed super-safe. EUROPE DJ Stoxx 50 lion, or $3.2 billion, of state capital, dou- leaves the Bank of Spain holding a hot
You know what happened.
The easy money led to excessive
2,922.00
JAPAN Nikkei 225
–14.44 –0.6 ble the amount the Bank of Spain had
said the lender would need to raise its
potato in the form of Caja Mediter-
ráneo. While the lender is not systemic,
lending and soaring home prices. That 9,755.10 +46.31 –12.1 core Tier 1 capital ratio to 10 percent. its ¤70 billion of assets make it bigger
led to overbuilding. Mortgages were People close to Cajastur, one of the than the two minnows that failed.
written on terms that lenders knew other banks involved in the merger, say Nationalization looks inevitable,
CURRENCIES
home buyers could not really afford. there was a bigger-than-expected hole though it’s not yet clear how big the
The borrower would, for a while, pay in Caja Mediterráneo’s accounts. The state’s stake would be. Depending on
less than the interest owed, and then additional funds were necessary to en- Caja Mediterráneo’s valuation, and the
the payments would soar. It was as- sure the merged lender would pass condition of its balance sheet, the state
+10%
sumed that a homeowner facing those Europe’s bank stress tests. will probably end up with a controlling
high payments would either sell the Yet the criteria for the stress tests are share. If that is the case, the Bank of
home or refinance the mortgage, creat- not yet clear. And Caja Mediterráneo Spain should clear out the management
ing more fees and more mortgages to 0 says its partners have known the state and restructure the lender before re-
securitize. of its balance sheet for months. Pre- turning it to the private sector. Simply
Then in all collapsed. It turned out sumably, the Bank of Spain was aware propping up a troubled caja would dent
that people who cannot afford pay- of it, too. the central bank’s credibility — and un-
ments do not make them. House prices –10 Politics no doubt played a part. The dermine its broader efforts to clean up
began to fall, and refinancing or selling merger looked awkward from the start, the financial system. FIONA MAHARG-BRAVO
at a profit became impossible. In- 2010 2011
vestors wanted no part of private-label EURO 52-week
mortgages, and banks wanted to lend
to only the safest borrowers. Fannie
€1= $1.42 +0.007 +5.1% Medvedev takes business into his own hands
YEN
and Freddie would have gone bankrupt ¥100= $1.21 +0.001 +12.8 Democratic countries tend to let voters vest and Aeroflot.
but for the government stepping in to
POUND
decide who governs. Russia prefers to The president’s initiative is a busi-
rescue them. Now the government is resolve the question ahead of time, be- ness-friendly gesture that will help re-
£1= $1.61 –0.001 +5.8
on the hook for something like 95 per- fore elections actually happen. At the duce the constant politicization of Rus-
cent of all new mortgages issued. moment, President Dmitri A. Medve- sian business. True, the short-term
The banking system is unlikely to COMMODITIES dev is determined to show that he, and effect on the companies targeted by Mr.
want to keep enough loans to allow the not his prime minister, Vladimir V. Medvedev may be negative: they won’t
government market share to shrink as Putin, is the real ruler of Russia. He is have ministers on board to care for
much as is needed. To accomplish that, sending forceful signals that he has their interests. But on the other hand,
+75% every intention of staying in office after this should help reduce competition dis-
it will be necessary to reestablish a
private securitization market. the 2012 presidential election. His order tortions in the wider economy.
What will it take to get a private se- +50 this week to remove government minis- The big question is whether Mr. Med-
curitization market going? ters from the boards of state-owned vedev can get away with this latest
First you need investors who are +25 companies is a direct attack on close as- power play. The officials in question are
willing to believe that this time is dif- sociates of his former mentor — and in- already hinting at resistance. Much will
ferent. Second, you need to make Fan- 0 directly on Mr. Putin. depend on Mr. Putin’s reaction. So far,
nie and Freddie less competitive, with- Mr. Medvedev’s move comes days the prime minister has been remark-
out destroying the market. after he had publicly disavowed the ably quiescent in reaction to Mr. Med-
To get a private securitization mar- prime minister over Libya, and firmly vedev’s assertive moves, suggesting
2010 2011
ket going, the need is to both make that put his stamp on Russian foreign policy. that he’s resigned to his emancipated
market more attractive to investors OIL Nymex light sw. crude 52-week The latest initiative is even more signif- protégé’s new role.
and make Fannie and Freddie less — $106.24 a barrel +1.97 +27.5% icant. It could durably alter the rela- But if he isn’t, there’s a chance that
not more — attractive to banks trying GOLD New York tionship between business and govern- Mr. Medvedev will one day discover
to dispose of loans. This proposal un- $1,439.70 a tr. oz.+20.30 +29.2 ment. that he has bitten off more than he can
fortunately does one but not the other. CORN Chicago Senior government officials routinely chew. JASON BUSH
$6.60 a bushel –0.14 +90.9 sit on the boards of, and sometimes
ONLINE: HIGH & LOW FINANCE chair, major state companies, among
Data as of 1545 U.T.C.
Read Floyd Norris’s blog on financial Source: Reuters them the oil company Rosneft, VTB For more independent commentary and
topics online. norris.blogs.nytimes.com Graphs: Custom Flow Solutions Bank, Gazprom, the telecom Svyazin- analysis, visit www.breakingviews.com

Worried about cellphone radiation? Switch to speaker mode and stay put
Health officials offer tips
for reducing exposure
amid conflicting studies
BY KATE MURPHY
In a culture where people cradle their
cellphones next to their heads with the
same constancy and affection that tod-
dlers hold their security blankets, it was
unsettling in February when a study
published in The Journal of the Ameri-
can Medical Association indicated that
doing so could alter brain activity.
The report said it was unclear wheth-
er the changes in the brain — an in-
crease in glucose metabolism after us-
ing the phone for less than an hour —
had any negative health or behavioral
effects. But it has many people wonder-
ing what they can do to protect them-
selves short of (gasp) using a landline.
‘‘Cellphones are fantastic and have
done much to increase productivity,’’
said Dr. Nora D. Volkow, the lead inves-
tigator of the study and director of the
National Institute of Drug Abuse at the
National Institutes of Health. ‘‘I’d never
tell people to stop using them entirely.’’
Yet, in light of her findings, she advises
users to keep cellphones at a distance by
putting them on speaker mode or using a
wired headset whenever possible. The
next best option is a wireless Bluetooth
headset or earpiece, which emits radi-
ation at far lower levels. If a headset is
not feasible, holding your phone just
slightly away from your ear can make a
big difference; the intensity of radiation
diminishes sharply with distance.
‘‘Every millimeter counts,’’ said
Louis Slesin, editor of Microwave News,
an online newsletter covering health
and safety issues related to exposure to
electromagnetic radiation.
So crushing your cellphone into your
ear to hear better in a crowded bar is
probably a bad idea. Go outside if you
have to take or make a call. And you
might not want to put your cellphone in
your breast or pants pocket either, be-
cause that also puts it right up against
your body. Carry it in a purse or
briefcase or get a nonmetallic belt clip
that orients it away from your body.
Some studies have suggested a link
between cellphone use and cancer, lower
bone density and infertility in men. But
other studies show no effect at all. Given
the mixed messages and continuing re-
search, Robert Kenny, a spokesman for
the U.S. Federal Communications Com-
mission, wrote in an e-mail, ‘‘As always,
we will continue to study this issue and
coordinate with our federal partners.’’
The phone used in Dr. Volkow’s study
was a Samsung Knack, model SCH-
U310, a flip phone that was in wide use
A model texting before a fashion show in New York. A recent study found that using a cell-
phone can alter brain activity, something that may make texting a safer option than calling.
when she began planning her experi-
ments two and half years ago. But
today’s ubiquitous smartphones emit
even more radiation as they transmit
more, and more complex, data.
You can get an idea of the relative
amounts of radiation various cellphone
models emit by looking at each model’s
ERIC THAYER/REUTERS
SAR, or specific absorption rate. That
number indicates how much radiation is
absorbed by the body when using the
handset at maximum power. A cellphone
cannot be sold in the United States unless
an F.C.C.-approved laboratory says its
SAR is less than 1.6 watts per kilogram. In
Europe, the maximum is 2 watts per kilo-
gram. A kilogram is about 2.2 pounds.
The SAR number is not displayed
when you compare cellphones at your
local wireless store, and trying to find it
in the fine print of your user manual is
an exercise in frustration. The F.C.C.
maintains that SAR values ‘‘do not
provide sufficient information’’ to reli-
ably compare cellphone radiation emis-
sions because certain phones might
rarely operate at maximum power.
Still, the Environmental Working
Group, a nonprofit organization, has a
comprehensive list of the SAR values
for most cellphones available from ma-
jor carriers on its Web site.
But more important than looking for a
low-SAR phone is how you use it. Many
cellphones emit the most radiation
when they initially establish contact
with the cell tower, making their ‘‘digit-
al handshake.’’ To reduce exposure, it is
best to wait until after your call has been
connected before putting your cell-
phone next to your ear.
During the ensuing conversation, it is
advisable to tilt the phone away from
your ear when you are talking and only
bring it in close to your ear when you are
listening. That bit of teeter-totter works
because the emission of radiation is
‘‘significantly less when a cellphone is
receiving signals than when it is trans-
mitting,’’ said Lin Zhong, an assistant
professor of electrical and computer en-
gineering at Rice University in Houston.
Moreover, your cellphone emits less
when you are stationary because when
you are moving rapidly — say, in a car or
train — it must repeatedly issue little
bursts of radiation to make digital hand-
shakes with different towers as it moves
in and out of range.
Any situation where your cellphone
has a weak signal indicates it has to
work harder and thus will emit more ra-
diation.
Of course, parents using their
iPhones to pacify cranky kids might
want to reconsider rattles. Children’s
developing brains and tissues are
thought to be most vulnerable to cell-
phone radiation. The health authorities
in Britain, France, Germany and Russia
have all issued warnings against allow-
ing small children to use cellphones for
extended periods, if at all.
There are cellphone attachments that
purport to shield users from radiation,
but most are ‘‘hoaxes,’’ said Om P.
Gandhi, a professor of electrical engi-
neering at the University of Utah.
Using text messages, instead of talk-
ing, might be safer. ‘‘The whole trend to-
ward texting instead of talking on cell-
phones is probably a good thing,’’ said
Mr. Slesin at Microwave News.
That is, if you don’t rest your cell-
phone against your body while typing
out your message.

Traveler’s forecast
High/low temperatures, in degrees Celsius and
T-STORMS
SHOWERS
STATIONARY
COMPLEX
INTERNATIONAL TRAVELER
0-5
degrees Fahrenheit, and expected conditions. FLURRIES WARM
5-10 COLD
C ..................... Clouds Sh ................. Showers SNOW
–5-0
F .......................... Fog S .......................... Sun RAIN
MOSTLY the country would cost as much as 14 tril-
H ........................ Haze Sn ...................... Snow CLOUDY TOKYO LOS ANGELES lion won, or $13 billion, and may not at-
I.............................. Ice SS....... Snow showers ICE
PC.......... Partly cloudy T ........ Thunderstorms
10-15 5-10
5-1
0-5 AIRLINES ADDING CATERING STOPS ARCHIVISTS AT NIXON LIBRARY tract as many passengers as initially ex-
R ......................... Rain W ...................... Windy HIGH pected, the Ministry of Land, Transport
10-15
RUSSIA Meteorology by IN SEOUL BECAUSE OF JAPAN DISASTER REVAMP WATERGATE EXHIBIT
Friday Saturday LOW BRITAIN AccuWeather. and Maritime Affairs said Thursday.
Weather shown
˚C ˚F ˚C ˚F 15-20 5-1
5-10
as expected
At least three major airlines have added History is being restored at the Richard President Lee Myung-bak, who
Abu Dhabi 30/24 86/75 S 31/25 88/77 S
UKRAINE at noon on a stop in Seoul for flights in and out of Ja- Nixon Library, where the Watergate pledged during his election campaign
Almaty 10/4 50/39 Sh 11/5 52/41 Sh
Athens 17/12 63/54 R 15/11 59/52 Sh
Friday. pan because of staffing and supply con- exhibit once told visitors that the scan- to build the airport, said dropping the
Bangkok 32/26 90/79 C 32/25 90/77 PC FRANCE cerns. Japan has experienced fuel, food dal that led to the president’s resigna- project was an ‘‘unavoidable choice for
Barcelona 20/12 68/54 PC 19/11 66/52 S
ROMANIA
and power shortages since the March 11 tion was really a ‘‘coup’’ by his rivals. the national interest.’’ (BLOOMBERG)
Beijing 9/3 48/37 R 16/4 61/39 S
Belgrade 18/9 64/48 PC 18/7 64/45 PC
15-20 earthquake and ensuing tsunami. It is For years the library exhibit that re-
PORTUGAL 20-25
Berlin 17/9 63/48 C 20/11 68/52 S ITALY also grappling with serious problems at traces the Nixon story was a target of L AS VEGAS
10-15
Boston 7/1 45/34 R 8/1 46/34 W SPAIN ALB. its Fukushima nuclear plant. ridicule, panned for omissions and edit-
Brussels 18/11 64/52 Sh 23/12 73/54 S 2 NEW TOURIST ATTRACTIONS
25-30 The airlines — British Airways, Air ing that academics and critics said
Buenos Aires 27/16 81/61 S 26/14 79/57 S HIGHLIGHT CITY’S MOB HISTORY
Cairo 32/19 90/66 S 27/17 81/63 S France-KLM and Lufthansa — have shaped a legacy favorable to the tainted
SYRIA
Chicago 8/-1 46/30 Sn 10/1 50/34 PC
15-20
moved crews to Seoul and are using ca- president. Speakeasies, bootleggers, gun-wielding
Frankfurt 19/12 66/54 Sh 24/15 75/59 S tering services out of Incheon airport, On Thursday, archivists were to crime bosses and tough-guy accents
Geneva 18/11 64/52 H 22/8 72/46 S MOROCCO
Hong Kong 24/19 75/66 S 27/21 81/70 S
TUNISIA ISRAEL adding a stop in the country for flights present a revamped and expanded ver- pay homage to Las Vegas’ mob roots in
20-25 JORDAN
Istanbul 13/11 55/52 C 12/9 54/48 R through Japan, a Seoul Regional Avi- sion of the exhibit at the library in Yorba, a pair of new attractions showcasing
20-25
Jakarta 29/24 84/75 R 29/24 84/75 R ALGERIA SAUDI
ARABIA
ation Administration official said. The California, a $500,000 makeover that the city’s criminal history.
Johannesburg 26/12 79/54 PC 22/12 72/54 T
Karachi 36/24 97/75 S 36/23 97/73 S EGYPT
stopover in Seoul adds at least two they said was faithful to fact, balanced An interactive attraction featuring
30-35
Kiev 12/7 54/45 PC 13/3 55/37 C LIBYA 25-30 hours to long-haul flights. and devoid of political judgment. (AP) gangster memorabilia and commen-
Lagos 32/25 90/77 PC 31/24 88/75 T 25-30 Air France’s sister airline, KLM, has tary from film actors who played mob-
Lisbon 24/13 75/55 PC 20/11 68/52 PC added an intermediate stop on flights SEOUL sters opens Wednesday on the Las Ve-
London 18/10 64/50 PC 18/9 64/48 Sh
Los Angeles 28/14 82/57 S 22/12 72/54 PC Nice 18/14 64/57 PC 23/13 73/55 S Stockholm 7/2 45/36 Sh 9/4 48/39 PC out of Tokyo at Kansai airport, near gas Strip. Oscar Goodman, the Las
SOUTH KOREA CANCELS PLANS
Madrid 24/8 75/46 S 25/10 77/50 PC Osaka 19/8 66/46 S 9/4 48/39 C Sydney 26/15 79/59 PC 24/13 75/55 PC Osaka in Japan, until April 8, a spokes- Vegas mayor and a former defense law-
Manila 33/24 91/75 S 31/24 88/75 S Paris 19/9 66/48 C 23/12 73/54 S Taipei 25/18 77/64 PC 24/18 75/64 PC woman said. The carriers share a par- TO BUILD A NEW AIRPORT IN BUSAN yer, also plans to open his Las Vegas
Mexico City 28/11 82/52 PC 28/11 82/52 S Riyadh 28/19 82/66 S 32/19 90/66 S Tel Aviv 29/21 84/70 S 24/16 75/61 S
Miami 30/18 86/64 PC 30/19 86/66 S Rome 19/11 66/52 S 23/12 73/54 PC Tokyo 15/12 59/54 S 14/5 57/41 C
ent company but operate independ- South Korea scrapped plans to build a Museum of Organized Crime and Law
Moscow 1/-1 34/30 PC 7/1 45/34 C San Francisco 20/12 68/54 PC 17/7 63/45 C Toronto 7/0 45/32 PC 6/1 43/34 PC ently. Other carriers serving Asia- new international airport for Busan Enforcement this year.
Mumbai 34/22 93/72 S 33/23 91/73 S Sao Paulo 25/17 77/63 Sh 26/17 79/63 T Tunis 21/8 70/46 S 22/11 72/52 PC Pacific, including Qantas, have added after concluding that the project would ‘‘What differentiates us from any oth-
Nairobi 30/15 86/59 PC 31/15 88/59 PC Seoul 13/3 55/37 S 16/1 61/34 C Vienna 18/11 64/52 C 20/13 68/55 S
New Delhi 35/19 95/66 S 35/18 95/64 PC Shanghai 20/13 68/55 S 14/7 57/45 PC Warsaw 14/6 57/43 Sh 14/3 57/37 S
stopovers in Hong Kong, according to be too costly. er city is our history,’’ Mr. Goodman
New York 7/2 45/36 R 11/2 52/36 PC Singapore 31/25 88/77 R 31/25 88/77 Sh Washington 12/3 54/37 Sh 14/4 57/39 PC industry data. (REUTERS) Building the airfield in the southeast of said. ‘‘This is the story of America.’’ (AP)