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Common Ground Common Sense > National & International News > Daily National and International News > National News Archive
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Snuffysmith
The Defense Secretary We Have

By William Kristol

"As you know, you go to war with the Army you have. They're not the Army you might want or wish to have at a later time."

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Snuffysmith
Afghan Forces Arrest 2 Taliban Leaders

KANDAHAR, Afghanistan, Dec. 14 -- Afghan forces have captured two top figures of the deposed Taliban government, including the personal security chief of leader Mohammad Omar, provincial officials said Tuesday.

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Snuffysmith
Several Factors Contributed to 'Lost' Voters in Ohio

By Michael Powell and Peter Slevin

COLUMBUS, Ohio -- Tanya Thivener's is a tale of two voting precincts in Franklin County. In her city neighborhood, which is vastly Democratic and majority black, the 38-year-old mortgage broker found a line snaking out of the precinct door.

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Snuffysmith
Several Factors Contributed to 'Lost' Voters in Ohio

By Michael Powell and Peter Slevin

COLUMBUS, Ohio -- Tanya Thivener's is a tale of two voting precincts in Franklin County. In her city neighborhood, which is vastly Democratic and majority black, the 38-year-old mortgage broker found a line snaking out of the precinct door.

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Snuffysmith
On Kerik Nomination, White House Missed Red Flags

By Mike Allen and Peter Baker

President Bush hoped to limit the political damage from the nomination of Bernard B. Kerik by cutting him loose as soon as he confessed he had not paid taxes for a Mexican nanny who apparently had been in the country illegally. Instead, questions about Bush's judgment have escalated because of a cascade of damaging details about Kerik's business and personal lives that White House vetters either missed or ignored.

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Snuffysmith
He Coulda Put Spice In Bush's Cabinet

By Peter Carlson

Come back, Bernie Kerik. We need you. We want you. We love you.

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Snuffysmith
Lacking Visa, Islamic Scholar Resigns Post at Notre Dame

By Peter Slevin

CHICAGO, Dec. 14 -- Unable to obtain a visa from the Bush administration or a promise about when a decision would be made, Islamic scholar Tariq Ramadan resigned his faculty appointment at the University of Notre Dame this week, saying he needed to end the uncertainty.

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Snuffysmith
Pentagon Limits Gifts To Troops

By Brian Faler

The Defense Department has a stern message for those considering playing Santa Claus this holiday season to troops abroad: If you don't know them, don't send it.

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Snuffysmith
It's Time for Dems to Face the Music

By Al Kamen

And now, the winners of the In the Loop Name That Tune Contest. This was to give the battered and bewildered Democrats a new theme song for 2008. The entries, from Botswana to Santa Monica, reflected varied psychological responses to the Dems' latest electoral drubbing: anger, despair, fear and loathing, and so forth, along with a flight response and then grim determination.

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Snuffysmith
Bush Gives Medal of Freedom to 'Pivotal' Iraq Figures

By Ann Gerhart

Trumpeting America as liberator, the White House conferred the highest civilian honor yesterday on three men intimately involved with the decision to invade Iraq or the troubled aftermath of the invasion.

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Snuffysmith
Shrinking Coverage

By Albert B. Crenshaw

Employer-paid health care for retired workers has been growing sharply more expensive, and the number of companies willing to provide it continues to shrink.

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Snuffysmith
Bush Allies May Defect Over Fiscal Proposals

By Jeffrey H. Birnbaum and Jonathan Weisman

The AARP bulletined its 35 million members last week that President Bush's plan to make personal investment accounts part of Social Security was the "wrong direction" and would "make the problem worse." The National Retail Federation has cautioned lawmakers that a national sales tax would hurt the economy. And health lobbyists have begged the White House to retain tax breaks for health insurance.

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Snuffysmith
Fed Raises Benchmark A 5th Time

By Nell Henderson

Federal Reserve officials raised a key short-term interest rate yesterday for the fifth time this year, and indicated they will gradually move rates higher next year to keep inflation under control as the economy expands.

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Snuffysmith
Who Will Say No?

By Robert J. Samuelson

Tommy Thompson announced his resignation the other day as secretary of health and human services and, in the process, gave us a quick tutorial on why we can't control exploding federal spending for retirement benefits -- the nation's No. 1 budget problem. We have a generation of politicians, of both parties and of whom Thompson is symbolic, who want to say "yes" to voters: Yes, you can have what you want, and you can have it now. The solution to this problem requires leaders to say "no" to voters: No, you cannot have all the retirement benefits you've been promised or desire, because we can't afford them. Americans reject that message, and our leaders don't dare deliver it.

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Snuffysmith
Tight Little Cabinet

By David S. Broder

President Bush's second-term Cabinet choices pronounce a clear preference for continuity and control. The striking thing about his reshuffle is the priority he has given to familiarity and loyalty over fresh ideas and novel perspectives.

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Snuffysmith
http://www.antiwar.com/pat/?articleid=4165

The Neocons Haven't Won Yet
Pat Buchanan
Snuffysmith
http://www.antiwar.com/lobe/?articleid=4168

Rummy Back on the Rocks
Jim Lobe
Snuffysmith
http://www.realcities.com/mld/krwashington/10408514.htm

Iraq's insurgency continues at a fierce pace
Snuffysmith
http://www.rferl.org/featuresarticle/2004/...B8B38DAAEC.html

Analysis: US Eyes Suspected Insurgents in Syria
Snuffysmith
http://www.msnbc.msn.com/id/6708495/

Rumsfeld under fire over Iraq
Snuffysmith
http://www.usatoday.com/news/world/iraq/20...ty_x.htm?csp=15

Long Way to Go Before Iraqis take over Security
Snuffysmith
http://www.editorandpublisher.com/eandp/ne...t_id=1000736658

New Gallup Poll Riases Questions About Media Focus on 'Values'
Snuffysmith
http://www.washingtontimes.com/functions/p...14-122616-9927r

'Frivolous lawsuit' irks Pentagon
Snuffysmith
http://www.washingtontimes.com/functions/p...13-101417-3152r

Foreign dislilke of Bush spreads to Americans
Snuffysmith
NEWS TRANSCRIPT from the United States Department of Defense

DoD News Briefing
Lawrence Di Rita, Principal Deputy Assistant Secretary of Defense for Public Affairs
Tuesday, December 14, 2004 - 1:15 p.m. EST

(Also Participating; Brigadier General David Rodriguez, Deputy Director for
Regional Operations, Joint Staff Operations Directorate)

MR. DIRITA: Good afternoon.

I wanted to just, if I could, acknowledge what happened at the White
House just a little while ago with the president honoring the handful of folks
involved with U.S. Iraq policy with the Presidential Medal of Freedom. We
obviously count at least two of those awardees as alumni of the Department of
Defense, if you will, General Franks and Ambassador Bremer, who both did a terrific job while they were serving, and the president's remarks stand on their own.

Later today -- and it's just serendipitous timing -- the secretary will
be acknowledging at a ceremony here a number of participants in the coalition
provisional activity with some awards, including Ambassador Bremer, who will be
receiving the Department of Defense Distinguished Public Service Award later
today. And again, as I said, it was a happy coincidence of timing that these
ceremonies came together on the same day, but it was something the secretary felt he wanted to do for some time and we were able to arrange it. So Ambassador Bremer and several other individuals under the Coalition Provisional Authority who performed quite well on behalf of the country will be recognized this afternoon.

Q Will that be a private ceremony or --

MR. DIRITA: It's a private ceremony here in the department. We may
have a statement on it later on today just to provide the details.

I think there was also an announcement with regards earlier today about
some units that have been identified for the ongoing rotation in Iraq, and if you
haven't seen it you will, an announcement that -- as we are identifying some of
these units, we're notifying the units, we're notifying the families, we're
notifying the congressional constituency -- or the congressional representatives
and, obviously, publicly making the acknowledgements. And you'll see a statement on that later if you haven't seen it already. Just, again, it's part of the
ongoing rotation. There is no change to the level or the disposition of the forces
other than that we've identified some units that would be in the follow-on
rotations.

With that, I'll ask General Rodriguez to make a few comments.

GEN. RODRIGUEZ: Thank you, Mr. DiRita. And good afternoon.

Iraqi and multinational forces continue offensive operations against
anti-Iraqi forces throughout the region. Operation Al-Fajr continues search and
attack operations in order to set the conditions for the citizens of Fallujah to
return to their homes safely.

Yesterday in Baghdad, a patrol identified a suspicious vehicle which
upon further investigation contained over 40 bags filled with ammonium nitrate
surrounding a couple hundred pounds of mines and several large artillery rounds.
Additionally, VBIED materials were also found in the same location.

And with that, we'll take your questions.

MR. DIRITA: Mr. Aldinger.

Q Larry, first of all, I want to thank you, I think on behalf of
everybody, for increasing the rate of these briefings.

Q Hear! Hear!

MR. DIRITA: You're welcome.

Q I think it is welcomed by us and our bosses, mommies and daddies,
friends, everybody. (Laughter.)

MR. DIRITA: It's part of our holiday package. (Laughter.)

What have you got?

Q I just wanted to ask you about these charges yesterday by Human
Rights Watch that the situation -- the alleged abuse of prisoners, in Afghanistan
especially, is being fostered -- that an atmosphere is being created, that these
investigations are so secret that nothing is being released, and therefore the
suspicion arises that there's a cover-up and these people aren't really being
punished. What's your answer to that?

MR. DIRITA: I have read the Human Rights Watch letter. To my
knowledge, the secretary has not, although I understand the -- I mean, the letter
is to the secretary, but it's dated yesterday, so he just hasn't seen it yet.

I don't know that I would characterize it the way you did, but I would
say that I reject aspects of the letter out-of-hand, in particular that we've
launched criminal investigations only after abuses have received media attention.
And in fact, just last week from this podium I talked about conclusions of criminal
investigations for which we were queried as to why there wasn't more media
attention to the conclusions of the investigations.

So, you know, when we have things to announce with respect to detainee
abuse allegations, we announce them. And we've initiated more than a -- about a
dozen or a little more investigations. We've held -- we've held, between the Army
and the Marines, I think the number is on the order of three dozen courts-martial.
We've had about that many non-judicial punishments.

In the case of Afghanistan alone there are eight alleged cases of
deaths of detainees in Afghanistan, of which four are investigation by the Criminal
Investigative Division of the Army, and another one by the Department of Justice
because it involved a contractor. We had the cases of the deaths at the Baghram
facility in which we recently announced, after a fairly exhaustive investigation, a
couple of dozen or more, I think 28, indictments. And there's already been one
criminal charges referred.

So, everybody wishes for as much transparency as possible, and we're
going to be as transparent as we can. But I think that's been our pattern. The
notion that this has been the result of serious investigative work by journalists
is -- overstates the case. There has been a lot of work by journalists
investigating various allegations. But much of what journalists have investigated
is following what we've announced and what we released.

I'll give you another example. Last week we talked about the ACLU
having placed a bunch of documents on its Web site, and one of the documents that
got some notoriety was allegations involving DIA personnel. We had held
administrative proceedings and removed individuals from that unit before it was
even publicized that the allegations had been made.

We have another ACLU FOIA that's going to be provided -- a Freedom of
Information request collection of documents. Those collection -- and I'm going to
help you along because I doubt this is what will be highlighted. But in the
collection of documents that the ACLU has sought, there has been at least one
court-martial -- or at least -- there's one murder allegation in which there's
already been a court-martial. There's a larceny investigation in which there were
six court-martials or non-judicial punishments. And that's -- those are the
disposition of some of the cases involved in the ACLU Freedom of Information
request that is soon to be posted by the ACLU.

We're going to provide this documentation, and when we have the details
of individual cases, we'll provide that, too, as appropriate, and consistent with
classification.

But as I said, many of the cases that are being celebrated have had
disposition already made. And there may be a desire that disposition, when it's
made, be publicized, but that's a different thing from saying we're reacting to
publicity. It's quite the opposite, in most -- in many cases. And I'm not saying
that's going to happen every single time. But we've held a number of individuals
accountable. We will continue to hold people accountable. And we will continue to
pump out documents. And as I said last week, you will then continue to read those
documents and come back and say, "How come we didn't know about this?" And we'll say, "Sorry. When we had the court-martial, we should have put a press release out."

But in many cases, we are holding people accountable prior to people
even knowing that there was a case, and that's not anybody's fault. That's just
the way the military justice system operates. It's quick. It tends to be quick.
There are plenty of times when it is not. There's plenty of times when we wish it
were quicker. The Bagram cases were under investigation for a couple of years.
Justice delayed is justice denied. That's true. And so we do need to be quick.

But these are complicated cases. And many times people have
transferred. The investigators have to go out and gather sworn testimony from
people who are all around the world. It takes time, and we're doing our very best.

But the assertion by any organization that we are responding to press
reports and that's the only reason why people are being held accountable is just
false.
Q Larry --

MR. DIRITA: Yes?

Q Just a follow-up on that. I mean, in terms of releasing
documents --

MR. DIRITA: Yeah.

Q -- is it your policy that you'll just do it in response to FOIA
requests, or is there any --

MR. DIRITA: No. We didn't -- nobody FOIA'd any -- most of the things
we released when it came to these -- the various investigations -- I mean, people
may have FOIA'd it -- let me correct myself -- but we released an awful lot of
documents regarding the Abu Ghraib investigations, and we'll release a heck of a
lot more. And there will be -- I mean, the Freedom of Information Act still
exists, and people will still ask for things that we may not have, for whatever
reason, released.

But the general policy is one of transparency, and this is an important
issue in which there be transparency, consistent, as I said, with operations, with
security and all of the other things. Privacy -- in some cases, it's a privacy
issue. And when these things are released, they're -- they tend to be redacted.

And as I said, I'm giving you a heads-up. There will be another ACLU
tranche of documents. I've just given you the disposition in some of those cases.
As we learn further disposition in other of those cases, we'll be sure to provide
those. But we may not be able to do it in the same news cycle that you're
operating in; I understand that.

Yeah, Will?

Q All right. Just to follow up on that, on the ACLU documents,
there have been a number released today. Some of them are Navy documents talking
about Marines -- incidents involving Marines. One of them was one in which four
Iraqi juveniles were instructed to kneel down while a pistol was discharged to
conduct a mock execution. What can you tell me -- what do you know about that
particular incident? And do you know what disciplinary action was taken in that
incident and in the other incidents mentioned in the ACL(U) documents today?

MR. DIRITA: Will (sp), you're doing exactly what I said -- I predicted
you would do, which is here's something I've got and now what can you tell me. I
don't happen to have at this instant in time the disposition of that individual
case. When we get it, we will provide it.

I will simply refer back to the record, and I would caution people,
last week when the letter that was -- the Jacoby-Cambone letter was presented, I
saw an awful lot of reports about the letter. I saw very few reports about the fact
that there had been a disposition in that case, and we put that information out as
quickly as we learned it. And we'll do the same in this one as well, but -- and
we'll -- we will try and get that information. I don't know that that information
is available at the moment. But what I've -- what I have told you is that, in the
case of the ACLU request for information on investigations, there has been a number of -- a number of the cases were disposed of through courts martial or non-judicial proceedings. And with respect to individual ones, when we get them -- when we get that information, we'll put it out.

Q On the armor issue. I wanted to revisit that a second. Last week
you got criticism not only for the armor and the pace of up- armoring, but remarks
that have been described as cocky and condescending by the secretary to that
soldier. In retrospect -- you've answered the how we're up-armoring -- in
retrospect, does the secretary regret the tenor and tone of his response to that
soldier?

MR. DIRITA: Well, I won't speak to that in that -- let me answer the
question, first of all, by encouraging anybody who hasn't done so to look at the
video of that event. Nobody who saw that video would believe that the secretary
was being cocky and condescending. I feel confident in asserting that most people
who made that comment did not see the town hall meeting with the secretary, which was, by participants in the town hall, soldiers, was generally seen as a sort of typical meeting that the secretary has with the forces. It was -- they were very
appreciative that he was there. He wanted to be there. There was a good give and
take on a -- across a range of issues.

I will say this. Nobody is more impatient than the secretary of
defense to fixing what's wrong with this department. We are organized, trained and
equipped for a different era, and he recognizes that. And sort of implied in the
series of questions that we've seen not just at that town hall meeting, but from
members of Congress and others is their own recognition, the questioners'
recognition that this department finds itself in a world in which we aren't
optimized with respect to how we're organized, the weapons systems that we have
purchased, et cetera. And I don't think anybody would take -- the secretary will
take second place to no one in his impatience to change that, to see that we become a more flexible, adaptive military institution to better serve this country for the investment that the public is placing in it. And it is -- I think it is the case
that he feels an obligation on behalf of the department when he's -- particularly
-- specifically when he's speaking to troops -- to convey that there's a lot of
work going on to change it so that the forces understand that they -- that the
things that they need that they'll have. And I think that has been his record when
he meets with forces.

Q Didn't it come off, though, as a little impatient, patronizing --

MR. DIRITA: Certainly not with respect to the individual. He didn't
feel that way. And as I said, if you watch the video, I don't think anybody could
accept that interpretation. But probably what didn't come out as much as I've seen
it in other venues is the secretary's own sense -- his shared sense with that
soldier of let's move along, let's get this department doing what it needs to be
doing now as opposed to being organized for a different era.

Q Quick follow-up. Some Democratic staffers on Friday night were
saying that the department was going to set up an armor task force to review
requirements overall. Is that true?

MR. DIRITA: That is. I think the secretary of the Army has set up a
task force to see what else might be done to continue the acceleration of
capability in this area. As we've discussed from here and as has been briefed --
and I think we've got some more data being provided to you in a briefing tomorrow on armor -- the Army has already done an awful lot to mobilize the industrial b se, and we've talked about it here. But the secretary of the Army has a view that if there's one more, you know, faucet to turn even wider open, let's see if we can. But it's got to be done, in his view, in the context of a broader strategy of how do we flexibly respond to the challenges that we face in Iraq? And armor is one way to do that, but it is not the only way. And if every soldier in Iraq had armor, we would not defeat the insurgency. It is going to require a range of capabilities. Our ability to --

Q (Off mike.)

MR. DIRITA: Let me finish the question. Our ability to respond to the
IED threat -- and there's been an awful lot of thinking and analysis and technology
to go into that challenge as well. So it's -- the secretary of the Army -- indeed,
the secretary of Defense has the view that we should be doing all we can, but let's
also make sure that we aren't losing sight of the real challenge, and the real
challenge is being flexible against a very adaptive adversary.

Q Follow-up on that, if I may?

Q In the death cases in Afghanistan, is it true that one of those
death cases was -- you know, the person responsible was punished with a reprimand?

MR. DIRITA: I'll see what we can provide for you in that regard. I
don't know off hand.

Q That's been reported. And I'm wondering how that could be
justified --

MR. DIRITA: Justifiable homicide has occurred in some of these cases
-- I don't know if these specific cases.

Q (Off mike) -- punishment for any kind of a wrongful death.

MR. DIRITA: I'm in no position to be able to kind of look over the
shoulder of investigators who have taken sworn testimony and analyzed the charges and analyzed the circumstances of the case and from this podium say he came up with the wrong answer -- he or she came up with the wrong answer. So --
Q Could the general --

Q Maybe the general could address that?

MR. DIRITA: Do you have anything to add?

GEN. RODRIGUEZ: No, I don't. I don't know the specifics on that case.

Q Larry? Larry?

Q Larry?

MR. DIRITA: We'll get to everybody. We've got time. That means more
or less. (Laughter.)

What do you got, Robin (sp).

Q You know, to follow up on what Larry was saying about IEDs,
General Rodriguez, can you bring us up to date on how you are seeing this IED
threat evolve in Iraq; the solutions, the tactics, techniques, procedures the
military is engaging in to deal with it?

And very specifically, General Jumper apparently told a group of
reporters this morning that the Air Force is going to increase its C-130 cargo
flights into Iraq to try and get more cargo in by air to reduce the number of
ground vehicles in convoys to help lower that threat. Can you bring us up to date
on all of that?

GEN. RODRIGUEZ: Well, on the -- on the last part, on the C-130s, yeah,
that's ways been an alternate way to get supplies there. So rather than run, you
know, thousands of trucks up and down the main supply routes, if you could put it
in by air, that would decrease those number of convoys that go up and down. So
that's been an alternative that they've looked at and have been able to expand that as the ability to fly into different places throughout Iraq has opened itself up
over time.

Now on the other piece -- and the up-armored part is only one part of
it. Everything -- another significant part is absolutely, like you said, tactics,
techniques and procedures. And you know, it's a whole concept that has to be put
together between protection, between attack, between detection, between analyzing the things that go wrong, the things that happen when an IED goes off. And to that end, the department has established a(n) IED task force that is focused purely on how we protect our soldiers, sailors, airmen and Marines better against the improvised explosive device and the tactics and techniques that the insurgency uses. And that's been going on for several months. And like I said, what it does is it focuses on the prevention, the protection, as well as attacking the personnel or people that are making them.

So it's a broad effort that, like I said, no one area in that four or
five areas I just discussed are going to be the answer. It's got to be a whole
process there that does that. So that's what is happening.

The other thing that it does is, for example, is if they get attacked
by a certain tactic and technique procedure from the insurgency over in one place,
in the information is shared and spread quickly throughout the force so that they
all can be watching for those indicators of those type of attacks. So that's the
urgency with which the department's going after the process to defeat improvised
explosive devices.

Q Can I just very briefly follow up? Whenever there's an IED
attack, how much does the military look at each situation? Or do they just move on?

GEN. RODRIGUEZ: Oh, no. No. Every situation is analyzed in detail.
So you're looking at every place by how the thing was put together, how it was
detonated, what type of material was used in it, what type of technology, because
people design things differently. So they're tracked that way. And then, like I
said, that's spread out immediately throughout the force so that the -- as soon as
people understand how that went on and what went on, everybody then is prepared to go out the next time and look for those same type of indicators to protect themselves better.

MR. DIRITA: And to really just put a fine point on it, our objective
is to defeat this insurgency and to do so with a minimal loss of coalition life.
And so we're going to provide all of the capabilities that the forces need, all of
the armor that they need. But keeping in mind that armor is part of a spectrum of
things that is going to help save their lives, as will flexibility, adaptability,
the ability to analyze the threat and react to it, and change the enemies -- we're
dealing with an enemy that has a vote and they're going to decide how to react to
us based on actions we take.

So, you know, pursuing aggressively one thing -- and that's armor -- we
have pursued aggressively and will do what we need to to provide the security to
the forces -- by itself -- let me say, it must be combined with a lot of other
activities to meet that objective of minimizing coalition casualties. And the
flexibility and adaptability cannot be overemphasized as one of the things that we
need to do.

Q A question on the troop rotations announced today. I wanted to
-- I didn't see any Marine units on there, and so I wanted to ask, is that
something that just hasn't been announced yet? Are the Marines getting a year
off? (Laughter.)

And also, how much -- is there a sense of how much, in terms of Guard
and Reserve, are going to be a part? I noticed there were some specific units, but
is there a percentage or anything?

GEN. RODRIGUEZ: No, that's still being done, on the first part, for
the Marines and everything. We'll continue to announce the units as they get
identified and alerted, and everything, so that's not, you know, the full number of
people that will be alerted.

And also, for the combat support and combat service support, which is a
big part of the Reserve units that get activated and mobilized to support the
operation, that's still being planned. And just like last time, we put out the
combat forces first and then it takes about two or three months to do the rest of
the planning, to get the combat service and combat service support. So until that
gets done, then you won't have your percentages exactly in the Guard.

Q Can you speak a little to the -- why these units are the best
ones for the job at this time, the ones that were announced today?

GEN. RODRIGUEZ: Well, it's what the combatant commander requests and everything. And the other reason that we put out -- as soon as we can announce these units, so they can properly prepare and get trained and ready for the type of operation that they're going to be faced with.

MR. DIRITA: If you look at the units, I think it reflects what we've
been talking about. You've got some heavy units there. You've got some mobile
units. I mean, there's a Stryker Brigade Combat Team. It reflects a mix of
capability, and that's what the combatant -- combatant commanders don't ask for
units as much as capability, and then we go back and find those units. And it
reflects a range of capabilities, including some heavy capabilities, some mobile
capabilities, some air assault capability. There's a range of things we need to be
able to provide the combatant commander.

Yes, (Tammy ?).

Q Can I follow up on that?

MR. DIRITA: Oh. Okay.

Q General, the announcement basically said that the Pentagon will
maintain the current troop level for the next two years. Is that a reflection that
Iraqi security forces perhaps are not going to be ready in time as originally
anticipated, or there is a better understanding of the insurgency and what it's
going to take to finally end it?

MR. DIRITA: Let me be very clear that this announcement is not
intended to say that whatsoever. We're going to be at the current force level
through the elections. This maintains -- for the purposes of planning, we've
identified sufficient units to maintain this brigade structure that we're currently
holding should that be necessary. And we'll continue to evaluate it. The plan
right now is to maintain this temporary plus-up through the elections and for a
period thereafter, for --

Q (It said ?) maintain the current 138,000 for the next two years.

MR. DIRITA: Again, we'll continue to evaluate that. We could very
well decide that while these units have been identified, we don't need them. Some
of these don't deploy until mid-2005. So it would be wrong to say that for as far
as the eye can see, this is the number. What this is is prudent planning to
identify those units so that we can then continue the assessment that will
determine what the actual level might be. It may very well be less than this, it
may be the same amount, it may be more. And I think the pattern that we've
established is that the commander will evaluate it, and should there be a need
for more or less, then there will be more or less. But it would be inaccurate
reporting on this announcement to say we're announcing that until 2007, there will
be this many troops in Iraq, because nobody knows that answer.

Q (Inaudible.)

MR. DIRITA: Okay.

Q Thank you. Could you explain why until Friday the up- armored
humvee production line had not been maxed out? Was it a cost- benefit analysis?
Was it a question of logistics getting them over there? Was it miscommunication,
that you didn't know they could more?

MR. DIRITA: I think it's probably closest to the last point you made.
As I understand it -- and I would refer you back to the Army to get a little more
refined understanding of this --

Q (Off mike.) (Laughter.)

MR. DIRITA: -- the company was operating at the maximum capacity for
what the Army was ordering. It had other capability, but it required retooling to
be able to do what the Army wanted. The Army was operating under the belief that this company could make no more than, I think the number was, 450 up-armored humvees a month. The company then came out Friday -- in some press reports somebody was attributed in the company to have said, well, we can produce a lot more.

Well, the secretary of the Army called and said, if that's the case,
we'll take them. And the company then came out and said, well, not so fast; we'd
have to retool, and it would be February before we can do that. So there was a lot
of qualification to early press reports that suggested that -- and again, this was
based on statements made from the company, so the company kind of requalified its own comments.

Q (Off mike) -- knew that, it's because the Army had asked them
earlier what their max production rate could be at that --

MR. DIRITA: As I understand it, they had had that discussion. The
company said, "Based on other things we're doing, based on other contracts we have to fulfill, based on other capabilities, our line is configured in such a way that
we can produce this number for the Army every month." And that number was 450.

Somebody then made a statement in the company, apparently, that was
reported on Friday morning, that "Oh, we could do more than that." And when the
Army went to them, they said, "That's not really quite right. We could do more
than that, but it'll take us four months to get there, and we've got to retool."
So the Army said fine. Then we'd like to get there, but it -- we recognize it's
not the same kind of excess capacity as was originally reported.

So I think the --

Q But where does it stand? Are they going to make more or not?

MR. DIRITA: Where it stands is, it's been announced, and I think the
company and the Army have both made statements to this effect on Friday. So I
don't have anything new to that -- to add to that. (Cross talk.)

Q Can I just question one thing? I mean, you talked the last time
we were here about World War II and the mobile -- industrial mobilization.

MR. DIRITA: Right.

Q And obviously, in a time of war, if the government's willing to
put the money behind it, they can mobilize industry to do whatever it is they
want. So why would you allow a company to tell you how many they can produce and go with that, as was given --

MR. DIRITA: Well, let me turn your question around by saying that from
the time that the Army decided it needed more of these until now, they increased
production thirtyfold. And the company then said, "We're maxed out." And then
they said, "Well, maybe not maxed out. We can squeeze a little more, but we'd have to cut back on some other contracts and retool our lines." And so that
conversation continues.

But there has already been a tremendous mobilization. I mean, I think
you've answered your own question. We -- the Army came and said, "We want more," and they went -- I mean, another one of these is these ceramic vests. I think we were -- we went from something like 1,500 a month to 25,000 a month. I mean, that is called wartime mobilization.

And there's always more that can be done, and we'll keep -- that's what
the -- somebody asked about the armor task force. They're going to see if there's
any other place they can squeeze down and get even more production.

Q Larry, Larry.

(Cross talk.)

MR. DIRITA: I --

Q Thank you, sir. General --

MR. DIRITA: At some point, I get to say "new topic," and then we're
off on some --

Q (Chuckles.) (Off mike.)

Q No. Well, I was -- I have a new topic, but you answered it while
I was waiting. But I do have a follow-up on all this. Are we -- and I'm not
suggesting the Army go into combat naked, but the humvee is basically not a combat vehicle. Are we perhaps overemphasizing this up-armor? Because, as I understand it -- and please correct me if I'm wrong -- that the armor on humvees will stop small arms and shrapnel, but is useless against heavy IEDs and many
rocket-propelled grenades, particularly armor-piercing. So you know, are we
overemphasizing this up-armor thing?

MR. DIRITA: You want to take that?

GEN. RODRIGUEZ: Well, the -- you know, we use obviously a combination
of vehicles in everything. But the IEDs -- now, understand, we've lost a tank to
an IED, too. So you know, it's a mixture of all those things. You know, the
advantage of the humvee is the speed with which it can get around, also the
maneuverability inside a city, relative to a tank sometimes. So the people are
mixing and matching all the capabilities they have, and that’s why they have that
range of capabilities. But the armor itself, on the up- armored humvee, is not the
solution. It's going to have to be a combination of things, like I said, about
tactics, techniques, procedures, different vehicles for different times, and those
types of adjustments. And the rapidity with which we can adjust, the speed with
which we can adjust to the situation dominate is what's going to be critical --

Q Really, to answer the question specifically, I mean, the up-armor
that's being placed on humvees, that will only stop a very small portion of what
the troops are facing in these things, right? I mean, an armor-piercing round or
an RPG will penetrate an M1-AI.

GEN. RODRIGUEZ: Right. That's exactly right. But you got to
understand that to -- you save a guy versus a guy getting killed. That's what --
the type of thing that helps. I mean, yeah, the thing will go through it. Some
of the RPGs that are armor-piercing will go through it. But you know, it goes
through it with less impact and it doesn't destroy the entire thing, and you lose
three guys -- maybe you lose one. You know, that's the kind of difference and
stuff. And the bottom line is, we want to get out of there with losing as little
number of people as we can, and we're doing everything we can to best protect them.

Q Larry, what's your reaction to Senator McCain's comments
yesterday that he has no confidence in the secretary and his concerns about more
troops needed in Iraq?

MR. DIRITA: Well, Secretary Rumsfeld has relied upon the judgments of
military commanders to determine the appropriate mix of capabilities and the
appropriate levels of forces in Afghanistan, Iraq, elsewhere in the world. That's
just -- that's the way the system works. There's a secretary of Defense and there
are military commanders, and those judgments are rendered and decisions are made. And it's perfectly understandable that people -- observers and others -- will offer their own views, and Senator McCain is certainly an important member of an
important oversight committee and has well- informed views. But the secretary has a responsibility to make decisions, and he makes those decisions based on the
judgments of military commanders. And I don't think he -- there's no other real
way to do that.

I don't think there's much more to be said on that.

Q Follow on that: Could you tell us if the secretary sees a need
to mend relations with Congress? There's been a lot of criticism from both
parties, and it may just be a matter of personal style.

MR. DIRITA: Whose personal style? (Laughter.)

Q Well, clearly they don't care much for him.

MR. DIRITA: Oh, okay.

Q But is he -- does he see any need to change the way he relates to
them --

MR. DIRITA: Look, the relationship with Congress is -- the Congress
is, as the secretary likes to remind people, Article I of the Constitution. He's a
former member of Congress. He is intimately aware of the important role Congress plays in the United States and spends an enormous amount of time with members, individually and collectively. I don't have the figures at my fingertips, but I would bet that there were -- he probably had two dozen breakfasts or lunches or events here at the Pentagon last year with a range of members, individually and collectively. He goes up to the Congress regularly; he testifies to the Congress regularly. The Congress has been, in the main, very supportive of the global war on terror, the president's objectives in the global war on terror; the imperatives of this department to transform, and what we were talking about earlier. We have sought from the Congress and received authority to bring our civilian personnel systems into the 21st century. We have sought from the Congress and received the authority to conduct another round of base realignment. We have embarked on a global posture realignment, with the support of the Congress.

It is -- the relationship with the Congress is one in which very few
things we do doesn't require intimate understanding of each other, and we spend an enormous amount of time making sure that the Congress understands what it is this department is doing. And you always want to make sure that if somebody wants or needs more information that they get it; if they have views that they would like to express, that they have the opportunity to express them. And I think our record has been one in which we've tried to provide that opportunity. Indeed, Senator McCain himself has received an enormous number of -- or at least we've offered a number of briefings to him on issues that we know are important to him. He's been over here as part of groups, as well as individually, with meetings with the secretary. We know that he has a particular concern about this issue involving the Air Force tanker capitalization, and we've tried our very best to provide the information that he desires and that the secretary shares an interest in providing.

One of the things that I found very interesting about Senator McCain's
comments with respect to his specific concerns about what's happening in Iraq, for
example, is that he shares many of those concerns with the secretary of Defense.
We have a mix of forces there that reflects a reliance on the Guard and Reserves,
and that's been a priority of this department to change that balance from the Cold
War balance that was developed over many years; prior to the arrival of President
Bush and his administration those decisions were made. We now have to reevaluate those decisions. And as I said, the secretary takes second place to nobody in his impatience that we do that. And I think Senator McCain has the same view that we've got to get on with this task. The difference is that the secretary's got a large department that he has to manage and lead, and we've got decisions that have to be made in a way that will stick. And that takes time.

Q Larry?

MR. DIRITA: Yeah.

Q Regarding the tanker situation, I've got a few points that I want
to clarify and close the loop on. First, the AoA is supposed to be complete. Can
you give us an idea of when key officials, such as Mr. Rumsfeld, Mr. Wolfowitz and
General Myers will be briefed on it? Also, when will it be briefed to Congress?

And there's a concern about the AoA being rushed into a five- month
time frame. You've probably seen the e-mail exchanges on that. Can you give us
some idea of how a formal AoA can be accomplished in a third of the time in which
AoA's are normally done?

MR. DIRITA: I don't know what e-mail exchanges you're referring to.
But when it comes to the issue of tanker recapitalization, I'm very sensitive to
the topic of e-mail, so -- but I don't know what e-mails you're referring to.

Q Well, Ms. Crawford, who is in charge of the RAND project, sent an
e-mail to the acquisition chief, one of the acquisition chiefs of the Air Force
saying specifically this is not an AoA; an AoA requires 18 months; this should not
be billed as an AoA.

MR. DIRITA: I'll tell you what we'll try and do is get you some more
detailed understanding of that issue from Mr. Wynn, the acting undersecretary for
acquisition, who has applied himself to -- Senator McCain in particular, but I
think there were some other members -- concerns on the question of the AoA. I
think he believes that he has built in some additional review and understandings
such that the work done by RAND can be seen to have the effect that everybody wants it to have, which is to give an honest assessment of what the alternatives are. But without wanting to speculate, he has, I think, recently communicated with
Senator McCain in this regard in a letter, and it would be best if I just leave it
to Mr. Wynn, and we'll get that information for you.

I think there's a general view that that analysis was sufficient to the
task but that we need to do a -- that he, Wynn, has built in some additional
reviews and oversights of that analysis to make sure that we didn't miss something
and to take account of some of these concerns that it may have been seen as a
partial analysis.

Q And what about the briefing schedule? Who's going to be briefed,
when?

MR. DIRITA: That I don't know. I mean, when these things complete or
conclude, they tend to kind of work their way through the system. There's a strong desire to capture any of the conclusions of this that may be needed as we develop our '06 budget, and we're in that process now. So to the extent that any
conclusions from the analysis are necessary, those briefings will move, but I
couldn't give you a schedule of that.

Q The Congress is going to briefed next week, so is it safe to
assume that Mr. Rumsfeld and Mr. Wolfowitz and General Myers will be briefed
sometime this week?

MR. DIRITA: Well, I wouldn't assume that. First of all, you know more
than I do, because I didn't know Congress was being briefed next week.

Q (Off mike.) (Laughter.)

MR. DIRITA: Believe me, on any given issue, I'm always playing
catch-up. But it could be something that is briefed to the deputy and not the
secretary, or briefed -- I mean, so I wouldn't be locked into a schedule of
briefings. The system -- everybody is seized with the desire to learn and move
forward, and as a result, we will have whatever briefings are necessary for us to
be able to do that. How's that.

Q Larry, can I ask an Iraq question?

MR. DIRITA: Okay.

Q What do you think it will take -- what conditions will it take
for the elections in Iraq to be viewed as a success? And what effect do you think
successful elections will have on the insurgency?

MR. DIRITA: Well, I think it will be the Iraqi people who determine
whether they have had successful elections. There are obviously institutions that
are both governmental and nongovernmental that have expertise in helping ensure
elections can be seen as credible, and those institutions are involved in Iraq. I
think the United Nations is very much involved in helping the Iraqi government
develop its procedures. There are other nongovernmental organizations there.
There will be -- they will have the opportunity, as will other observers, I'm sure,
to be able to give their view. But the Iraqi people ultimately will decide if they
feel as though they have had a voice and that that voice has been conclusive in its
elections. And I don't think we need to referee it, and certainly we don't need to
handicap it.

Q But if they do -- and I know maybe it's a better question for
General Rodriguez -- you know, what effect do you think that might have on the
insurgency? I mean, the insurgency seems to be intensifying leading up to the
elections. I think the secretary said that. So if the elections are successful,
do you think that will displace the insurgency?

MR. DIRITA: I don't think anybody knows. I mean, I just don't. We can
take Zarqawi at his word. In his letter that came to light about a year ago, he --
it was Zarqawi himself, if it were indeed his letter, who said, "A legitimate
government in Iraq is against our interests," or words to that effect. So he
understands what's at stake. Certainly the Iraqi people understands what --
understand what is at stake. But I think to be able to predict how this could
affect the insurgency, it would be guesswork, and I'm not into that.

I don't know if the general -- (off mike).

We've maybe got time for one or two, and then we're going to wrap --

Q An easier question. Anything on the size or timing of a
supplemental budget request?

MR. DIRITA: No, we don't have anything to announce on that. We
don't. There's work going on inside the department to understand what's needed,
and there's work going on with the Office of Management and Budget to understand, you know, so that they can get a sense of what the range of assumptions. And when we've got something to announce, we'll announce it.

Last one.

Q Larry, Afghan officials are saying that the security chief for
Mullah Omar and another senior Taliban commander were captured last night. Do we have any confirmation of this or --

MR. DIRITA: I haven't heard that report. I don't know --

GEN. RODRIGUEZ: No, we don't have any confirmation of that and
everything right now. We're trying to get that done right now.

MR. DIRITA: Great. Thank you very much.

Q Thank you

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Snuffysmith
THE PROGRESS REPORT

by Christy Harvey, Judd Legum and Jonathan Baskin

December 15, 2004

ECONOMIC CONFERENCE
Bush Makes You Broke

Today kicks off the start of the White House Conference on the Economy, a two-day, six-panel symposium to set country's economic priorities. Don't look for new ideas from this summit, which will be more style than substance. Independent analysts say instead of providing an open discussion for new ideas, it appears the conference is "designed to provide a highly visible forum for the administration to make the case for its existing initiatives." (As David Brooks writes in the New York Times, "it's important to understand that this week's summit -- unofficial title: Why President Bush Is Right About Everything -- may not feature the widest possible range of views.") That's bad news for the country. Over the past four years, President Bush's economic policies have left Americans broke. Prices and unemployment are up, wages are down, and Americans are struggling to break even with more households than ever declaring bankruptcy. For more on the president's economic summit, read American Progress's, "What the Cheerleaders Won't Tell You."

PROPERTY TAXES ARE UP: With the federal government cutting funding for programs, states are stuck with the tab. Across the country, that means higher property taxes. And according to the Christian Science Monitor, "the levies are squeezing the middle class and senior citizens - leaving them less to spend on everything from restaurants to roof repair." Lehigh County in eastern Pennsylvania, for example, is considering a 70 percent hike in property taxes. In New York, "Mayor Michael Bloomberg is proposing a 25 percent hike, which he says is needed to bridge a projected $6.5 billion budget gap next year. In Westwood Hills, an upscale suburb of Kansas City, residents are facing a 19.2 percent property-tax hike. And in Philadelphia, hundreds of homeowners are appealing recent recent property tax increases as high as 100 percent."

PRESCRIPTION DRUGS COST MORE: According to a new study by the AARP, drug prices over the past year rose an average of 7.4 percent, "or more than three times the 2.3 percent rate of general inflation in that period." The reason? The AARP "didn't examine the reason for the price trends, but noted that the Medicare drug-discount cards came out in June." To get ready for the discount cards created by the White House's industry-backed Medicare bill, many companies decided to protect their profits by jacking up the price of their most popular medications.

COLLEGE TUITION ON THE RISE, PELL GRANTS CUT: It's getting more expensive to go to college and, thanks to the White House, harder to pay for it. The average tuition for a four-year public university "jumped 10.5 percent this year." In the omnibus spending bill President Bush signed last week, the formula used to calculate financial aid in the form of Pell grants has been adjusted to to "adjust" its formulas for calculating financial aid, a move which will "reduce grants for 1.2 million students and cut off aid completely to about 90,000."

MAKING LESS MONEY: The growth in wages fell dramatically over the past four years. In 2000, median weekly wages grew by 4.9 percent. This fell to a mere 2.0 percent in 2003. Adjusted for inflation that means "that wages fell slightly in real terms in 2003 for the first time since 1996." This trend continued in 2004. After taking account of inflation, earnings in October 2004 were below those in December 2003.

JOB TRAINING FUNDS SLASHED: Twenty-five years ago, the federal government spent $27.3 billion on the federal job training program. Today, that's been cut by over 84 percent, to about $4.4 billion. Federal job training budgets have dropped $597 million since 2000 alone, making it that much harder for Americans trapped in poverty to find work and get off government assistance.

BIG DEFICITS MEAN LESS MONEY FOR EVERYONE: President Bush and his friends in Congress have been on a four year spending spree with tax cuts for the wealthy and preemptive war charged to the national credit card. When the nation reached its $7.38 trillion credit limit last month, reckless conservatives simply gave themselves a $650 billion increase in their credit limit. Why this matters: Large-scale borrowing by the federal government means less money is available for average Americans to borrow when they want to buy a house or a car, or pay for college tuition. That smaller pool of money available for loans leads to higher interest rates -- which not only puts a squeeze on individual consumers but also slows the rate of economic growth. That means, in the long run, fewer jobs, low wage growth and less money coming into the federal Treasury. Also, interest payments on the mounting debt, which exceeded $321 billion in fiscal year 2004, means less money for other priorities like education and health care.

ECONOMIC CONFERENCE
Cronies Converge

The White House claims this week's economic conference will feature a "wide range of people from the business community." In fact, it is little more than a gathering of corporate cronies, ex- campaign surrogates and political contributors. (The event does provide insight into Bush's priorities. He has made time on his schedule to attend panel on Social Security privatization and tort reform, but will skip the panels on "Making Health Care More Affordable" and "The State of Our Economy.") All told, the 35 individuals participating in the conference, and the companies they represent have showered the president with $388,340 for his presidential campaigns. The elite group will undoubtedly paper over the disastrous effects Bush's economic policies have had on the middle class. Here are some things you might not know about a few of the participants:

AT HOME IN THE WHITE HOUSE: Home Depot's CEO, Bob Nardelli, will need no introduction when he sits with President Bush on the panel on "lawsuit abuse" today. Nardelli hosted a fundraiser with Bush in May, pulling in $3.2 million for GOP candidates. Nardelli's company, Home Depot, has donated $1.5 million to the Republican Party since 1999 and "during that time, no candidate has benefited from Home Depot's largesse more than Bush." But Home Depot has received a great return on its investment: in October, Congress secured a $44 million subsidy for Chinese ceiling fans, of which Home Depot is one of the main beneficiaries. Nardelli and his wife, Susan, have donated $76,000 to GOP coffers.

ALWAYS TIME FOR CORPORATE CRONIES: Time Warner CEO Richard Parsons will be testifying about financial challenges for our future. But Bush's Social Security commission co-chair has not provided a very good example with his own business practices. In 1998, the Labor Department filed suit against Time Warner, alleging the company had "wrongly classified hundreds of workers as temporary employees and independent contractors to keep from paying them health and pension benefits." The White House maintained it was "not aware" Parsons had paid $5.5 million to settle the suit when it appointed him, and maintained he would provide "valuable contributions and insight" to the commission. Parsons, who is due to start receiving Social Security benefits in 7 years, told reporters, inexplicably, that until President Bush was elected he "never believed" he was "going to get anything out of Social Security." But he has contributed more than praise to the president: Time Warner gave $35,000 to the Bush campaigns in 2000 and 2004, with Parsons and his wife, Laura, chipping in $9,000.

ROLLING IN DELL: Dell CEO Kevin Rollins will participate in today's panel on "the state of our economy." Perhaps he will have some thoughts on the problem of corporate subsidies, after his company reportedly extorted the state of North Carolina for $242 million in tax breaks and other incentives over 15 years in return for moving a plant there. Dell officials reportedly misrepresented the offers of competing states to land the plumb deal. Dell's PAC has contributed $64,488 to GOP coffers in 2004 and Rollins gave the Bush campaign the maximum $2,000.

CAMPAIGN HACKERY CONTINUES: Want objective insight into the America's tax policy? Look no further than Pamela Olson, who, until this November was employed as a "Bush Campaign Tax Expert" and was a surrogate for Bush at tax-related campaign events. Olson also contributed $3,000 to the Bush campaign and her law firm kicked in $107,490.






Under the Radar

HOMELAND SECURITY -- APARTMENT OF ADULTERY: Where did a busy police commissioner and future (now "ex") Bush homeland security chief conduct adulterous affairs? Try an apartment "donated for the use of weary police and rescue workers who were helping at ground zero." The New York Times reports that after 9/11, Kerik "called Anthony Bergamo, a well-connected vice chairman of the Milstein family real estate company and a police buff, and asked for help finding a place for the workers to rest during breaks." In the following months, Kerik, who is married with two children, asked to use the apartment for his own personal use; it then became the site of his extramarital trysts. One bedroom of the love nest faced the rubble of the World Trade Center, where workers continued to toil.

IRAQ -- HALLIBURTON SUBSIDIARY TIED TO 'MERCHANT OF DEATH' TRAFFICKER: Largely under the auspices of the Pentagon, air cargo firms run by infamous arms and 'blood diamonds' trafficker Victor Bout, "have received millions of dollars in federal funds from U.S. contractors in Iraq, even though the Bush administration has worked for three years to rein in his enterprises," the Los Angeles Times reports. Moreover, Michael Isikoff notes in Newsweek, "[o]ne reason for the flights, sources say, was that the firm was flying on behalf of Kellogg Brown & Root, the division of Halliburton hired to rebuild Iraq's oilfields." Planes linked to Bout's shadowy network reportedly made nearly two hundred stops at American bases in Iraq, "despite the Treasury Department freezing his assets in July and placing him on a blacklist for allegedly violating international arms sanctions." Journalists Nick Confessore and Alexander Harrowell are following this story closely.

HOMELAND SECURITY - GONZALES FAILS EXAMINATION: The resignation of homeland security nominee Bernard Kerik reflects poorly on another Bush nominee, Alberto Gonzales. Gonzales, who is Bush's controversial nominee for Attorney General, "spent hours grilling Mr. Kerik," but "failed to get a full picture of the legal and ethical problems" that sunk Kerik's candidacy. For his part, President Bush announced Kerik's nomination "before the F.B.I. had begun the full field investigation required of all cabinet nominees...Officials said such an investigation would have readily uncovered the problems that doomed Mr. Kerik's nomination." Part of Kerik's expedited approval was a result of the president's obvious favoritism: Bush was known to admire Kerik, the New York Times reports, for his abortive attempt to train the police force in Iraq, and for "campaigning tirelessly for the president's re-election."

ETHICS -- NAVY STAFF WARNED OF 'EXPLODING' NUMBER OF ABUSE CASES: The ACLU on Tuesday released documents bolstering "its contention that the abuse of prisoners goes far beyond the handful of soldiers charged with abusing detainees at the Abu Ghraib prison in Iraq," according to the Los Angeles Times. The documents indicate "Marines in Iraq conducted mock executions of juvenile prisoners last year, burned and tortured other detainees with electrical shocks, and warned a Navy corpsman they would kill him if he treated any injured Iraqis." They also describe Navy criminal investigators scrambling to keep pace with a number of abuse cases in June, with one writing, "Heads up. Case load is exploding, high visibility cases are on the rise." ACLU attorney Jameel Jaffer said in a statement that the "detainee abuse was not aberrational. The Defense Department adopted extreme interrogation techniques as a matter of policy."

AIDS -- PLAYING WITH NUMBERS: According to the Washington Post, the head of the Bush administration's AIDS research department at the National Institutes of Health (NIH), Dr. Edmund Tramont, "rewrote a safety report on a U.S.-funded drug study to change its conclusions and delete negative information." Nevirapine, a controversial AIDS drug, can cause long-term resistance in those who take it, ending future treatment options. A top NIH researcher, Dr. Betsy Smith, submitted a report in January 2003 urging the NIH not to make safety conclusions based on research conducted in Uganda, saying it contained "incomplete or inadequate safety reporting." When the report was submitted to the FDA, however, Tramont erased Smith's data and rewrote the conclusion, saying the study had "demonstrated the safety" of the drug. Later, Tramont ordered nevirapine clinics in Africa reopened, saying it was important, "especially when the president is about to visit them." President Bush arrived in the country to tout his AIDS program a few days later. At the time, his top deputy strongly disagreed with the move, sending an email in which he stated: "We should not be motivated by political gains and it's dangerous for you, of all people, to be diminishing the value of our monitors."



DON'T MISS

DAILY TALKING POINTS: White House Crony Convention.

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DAILY GRILL

"You'll have people that share [the President's] philosophy "

-- White House Press Secretary Scott McClellan on the who will attend the White House Economic Conference, 12/13/04

VERSUS

"There will be a wide range of people...participating in this."

-- White House Press Secretary Scott McClellan on the who will attend the White House Economic Conference, 12/10/04


DAILY OUTRAGE

Jerome R. Corsi, who led the Swift Boat Veterans for Truth smear campaign against John Kerry, is hard at work on his next project, "preparing American public opinion for what he sees as a likely war with Iran."
Snuffysmith
Bus Hijackers in Greece Hold Passengers Hostage

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Hijackers in Athens suburb demand one million euros in ransom, safe
passage

Female hostage gets off hijacked bus as special police forces surround
it Two armed men hijacked a bus in an Athens suburb Wednesday and are
holding more than 20 people on board hostage. The hijackers are
demanding a million euros in ransom and safe passage.

The two men armed with shotguns, rifles and what they claim to be
grenades boarded the bus early Wednesday morning as it headed from a
suburb of the Greek capital Athens to the center of the city.

The driver, ticket collector and one woman passenger managed to escape
as the two men reportedly fired shots into the roof of the bus. More
than 20 other passengers were left on board, and as police close round
the blue commuter bus, one of the hostage takers, wearing a white
t-shirt, walked to the drivers window and fired two warning shots from
what appeared to be a shotgun.

The bus, immobile on the side of a two-lane road that was used as the
Marathon route during this Summer's Olympic Games, was quickly blocked
in by a police car parked closely behind it, and a large bus parked in
front.

The two men, who are believed to be either Russian or Albanian, have
demanded safe passage to the airport and more than $1.3 million in
ransom. They promise to release all the hostages at the airport.

Negotiators and special forces troops camped around the bus for almost
six hours before they achieved their first breakthrough - the release
of a middle aged man, apparently for medical reasons. He was followed
in the next hour by four other men, as negotiators made rapid
progress.

Greece has had experience of several bus hostage takings in recent
years. Earlier this year, a man held a bus driver a gunpoint for an
hour before surrendering. Four years ago, a local man took over a bus
carrying Japanese tourists, before he too surrendered.

In 1999, Albanian men took over two buses in separate incidents. In
one, the hostage taker was shot dead by Greek police after a two-day
standoff. In the other, the bus crossed to Albania, where special
forces stormed the bus, killing the hostage taker and a passenger.
Snuffysmith
Iraqis Have Mixed Emotions Over War Crimes Trials

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Some Iraqis say PM Allawi is looking for political gain before
national elections, while others say trials could further divide the
country

Iyad AllawiIraqi interim Prime Minister Iyad Allawi says war crimes
trials involving the inner circle of former leader Saddam Hussein are
to begin next week. But, Iraqi citizens seem to have mixed emotions
about whether now is a good time to conduct the trials. Some Iraqis
say Mr. Allawi is looking for political gain before national elections
next month, while others say the trials could further divide the
country.

Many Iraqi citizens, like 25-year-old mother Nadi Abdel Hadi, say they
are looking forward to seeing the inner circle of former leader Saddam
Hussein put on trial.

Ms. Hadi says these people need to be punished because they killed and
tortured many people. She says Iraqis deserve to see them on trial
because, she says, this is the justice for the Iraqi people.

Ms. Hadi says she believes interim Prime Minister Iyad Allawi wants to
use the trials for his own political gain, in advance of national
elections next month. But, she says, even if it is a game of politics,
Iraqis will still get their justice.

Others say they also want justice. But, according to 22-year-old
Baghdad University student Omar Shukur, the U.N. appointed interim
government should not be the institution to conduct the trials.

The college student says he hopes there is a legitimate government in
place when such trials begin because, without legitimacy, no one will
be able to expect that the trials will be fair. He says he hopes that
after national elections next month, a legitimate government will
conduct the trials.

In announcing that the trials would begin next week, interim Prime
Minister Allawi said justice will be served for all Iraqis.

Mr. Allawi has also announced a coalition list of candidates to vie
for seats in the transitional assembly to be voted on next month. Mr.
Allawi will pursue a seat in the coalition, known as the Iraqi
National Accord.

Baghdad University political science professor Abdel Jabbar Abdullah
says he believes Mr. Allawi is taking a political gamble in hopes of
convincing the Iraqi people that he will bring them their justice.
But, professor Abdullah says it is a gamble that should not be taken
at this time.

"Every criminal should take his penalty under the law, and not by
violence or by execution, only by the law," he said. "But, I think
that the trial of the inner circle of Saddam Hussein, in this time
before elections or with the time of elections, will lead the Iraqi
society to more division, not to more unity."

Professor Abdullah says Iraqi society is still suffering from what he
calls an "open wound" left behind by the regime of Saddam Hussein. He
says war crimes trials, at this time, will only inflame the passions
of Iraqis who opposed the regime, and of those who supported it.

Professor Abdullah says what the country needs most right now is
unity. And, he says he believes Prime Minister Allawi is needlessly
risking his political future, at the expense of possibly further
dividing an already fragile Iraqi society.
Snuffysmith
US Military Finds No Sign of Detainee Abuse in Afghanistan

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Review came in response to allegations by US-based advocacy group
Human Rights Watch

U.S. soldiers with Afghan prisonerThe U.S. military in Afghanistan
says an inspection of its detention centers shows no sign of recent
abuse against those in custody. The review came in response to
allegations by a human rights group of alleged mistreatment.

The spokesman for U.S. forces in Afghanistan, Major Mark McCann says a
review of U.S. military detention facilities in the country has turned
up no sign of abuse of prisoners over the past seven months.

"The inspection … showed that there were no signs or instance of any
abuse taking place, nor were there any signs of any commanders either
authorizing or condoning any abuse in any of those facilities," he
said.

Major McCann's remarks Wednesday follow a report by the U.S.-based
advocacy group Human Rights Watch, which cited allegations of physical
and psychological abuse against detainees.

He says the inspection, commissioned in May by the top U.S. commander
in Afghanistan, Lieutenant General David Barno, looked only at current
conditions and was not an investigation into any past incidents.

"We can't go back and change the past, but what we can do is we can
ensure that there are conditions in place now for in the future where
we ensure that this stuff will not happen again," he said.

The Human Rights Watch report had urged the military's findings to be
made public, and Major McCann said that would be done at some point in
the near future.

Many of those held by the U.S. military are suspected of aiding
anti-government insurgents. Some former prisoners say guards at the
facilities beat or sexually abused them.

Human Rights Watch had also cited eight deaths of Afghans while in
custody. Major McCann said investigations are being conducted into
each of the eight cases, although only one of the investigations has
been completed so far.

Separately Wednesday, the body of a kidnapped Turkish engineer was
found in eastern Afghanistan.

The man had apparently been shot several times after he was kidnapped
along with his driver and interpreter, who were both freed unharmed.

His death is the second such murder this year of a Turkish engineer
helping with road construction in Afghanistan.
Snuffysmith
India, Pakistan Discuss Nuclear Security

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Delegations end two-day talks, describing discussion of
confidence-building measures as 'cordial'

India-Pakistan talks in IslamabadNegotiators from Pakistan and India
have completed two days of talks on measures to avoid the possibility
of a nuclear war between the two nations. The talks are due to resume
at a later date.

The Pakistani and Indian delegations ended their two-day talks in
Islamabad, describing the discussion of nuclear confidence-building
measures as "cordial."

Speaking before the conclusion of the talks, Pakistani Foreign
Ministry spokesman Masood Khan told VOA the delegations focused
primarily on how to warn each other of impending missile tests, and on
establishing a new telephone hotline. The two countries frequently
conduct test flights of their missiles, although both sides say such
exercises are not meant to be provocative. "We zeroed in on two
things," he said. "One, of course, is pre-notification of flight tests
of missiles. The other was how to strengthen effective communication
between the two countries."

Masood KhanMr. Khan says a telephone hotline already exists between
India and Pakistan's military headquarters, and the delegates
discussed setting up another line between their respective foreign
ministries. "Pakistan and India are nuclear weapon states, so they
need reliable, credible communication," he said.

Negotiators say no final deals were reached on the two measures, but
progress was made and further talks will be held at a later date.
India first tested atomic weapons in 1974, while Pakistan conducted
its first open nuclear test in 1998.

The two countries have fought three wars and several smaller
skirmishes, mainly over territorial issues, since their independence
from Britain more than a half-century ago. They came close to war most
recently in 2002, but a peace process began in 2003 and a series of
bi-lateral agreements have been instituted since then. The nuclear
talks coincided with discussions on measures related to conventional
arms.
Snuffysmith
International Donors Warn Sri Lankan Government About Disrupting Peace
Efforts

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US Embassy spokesman says representatives from the United States,
Japan and the Netherlands recommnded President Chandrika Kumaratunga
ask JVP to stop its criticism of Norway The United States and two
other international donors have criticized Sri Lanka's coalition
government, after one of its partners made statements the donors say
could disrupt efforts to restart peace talks with separatist rebels.

The statement released by the international donors came after the
People's Liberation Front, or JVP, repeatedly criticized the role
Norway has played in mediating Sri Lanka's peace process.

Chandrika Kumaratunga (File photo)Representatives from the United
States, Japan and the Netherlands, whose ambassador represents the
European Union, met with Sri Lankan President Chandrika Kumaratunga
late Tuesday.

U.S. Embassy spokesman Philip Frayne says the group recommended that
Ms. Kumaratunga ask the JVP to stop its criticism of Norway.

"We think Norway has been playing a very positive role in trying to
get the sides to the table for talks. And we saw no reason why a
coalition party should be criticizing that role," he said.

Ms. Kumaratunga formed a coalition government in April after her party
failed to win a majority in parliamentary elections. The small,
Marxist-oriented JVP strongly opposes the peace process with the Tamil
Tiger rebels.

Norway has facilitated the peace process since February 2002 - when it
brokered a cease-fire between the two sides. But talks have been
stalled for more than 18 months.

The impasse is centered on the rebel's demand for virtual autonomy in
northern and eastern Sri Lanka, which the ethnic Tamil minority
dominates - a demand the government says is excessive. Those are the
same areas the rebels wanted to become an independent Tamil state
during 20 years of fighting with government forces, in which more than
60,000 people died.

The statement from the aid donors comes as a Norwegian peace broker
visits Sri Lanka this week for talks with government and rebel
leaders. The Tamil Tigers warned last month that if peace talks do not
resume soon, they are prepared to go back to war.
Snuffysmith
Cambodian Government Denies US Charge It Suspended Official Who
Rescued Prostitutes

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State Department spokesman says Washington was deeply concerned
over  suspension of General Un Sokunthea The government of
Cambodia has denied charges by the U.S. State Department that it
suspended a senior official whose department rescued scores of women
from a suspected brothel. The rescued women were abducted from a
shelter the following day.

The Cambodian government Wednesday denied the charge by the U.S. State
Department that the official who ordered the raid on a Phnom Penh
brothel to rescue scores of sex workers had been suspended.

Richard Boucher State Department spokesman Richard Boucher said
Washington was deeply concerned over the suspension of General Un
Sokunthea, the woman who heads Cambodia's anti-human trafficking
department.

Anti-trafficking activists from a French organization, contacted in
the Cambodian capital Wednesday, said they had no direct knowledge of
the reported suspension.

But leaders of the group, which rescues and rehabilitates victims of
sex trafficking, said Cambodian police had visited its shelter in
Phnom Penh to begin an investigation into the abductions.

However, the group's legal advisor, Aarti Kapoor, told VOA that the
group wants international investigators to be included on the
investigation team.

"We are concerned that the information that's being communicated needs
to be done officially, and it needs to be done with the interests of
the truth," said Aarti Kapoor. "As one of the main parties involved in
this case, we are calling for an independent international
investigation team."

She said the team should include representatives of the United
Nations, human rights organizations and an internationally recognized
police force.

The group is AFESIP, an acronym for the French name Acting for Women
in Distressing Circumstances. AFESIP leaders told reporters in Bangkok
that Cambodian police last week raided a hotel that was reportedly
involved in the sex trade, and took away 83 women engaged in
prostitution. The women were given shelter at the AFESIP facility
pending an investigation.

Eight suspects were detained in the raid, but were released the
following morning without explanation. A few hours later, two dozen
attackers broke down the gates of the AFESIP shelter and took away the
83 rescued women, as well as eight others being sheltered in a
separate case.

The attackers are still at large and the location of the abducted
women is not known. The shelter has been temporarily closed because of
threats to staff members. The Cambodian government ordered its
investigation after condemnation by the United States and the European
Union.
Snuffysmith
White House Welcomes Palestinian Leader's Call for Non-Violence

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Mahmoud Abbas says Palestinians should lay down weapons and resort to
non-violent means in struggle against Israel

Mahmoud AbbasThe Bush administration has reacted positively to the
latest comments from Mahmoud Abbas - the Palestinian leader
campaigning to succeed Yasser Arafat in elections next month.

Mahmoud Abbas says Palestinians should lay down their weapons and
resort to non-violent means in their struggle against Israel.

During a session with reporters, White House spokesman Scott McClellan
was asked if those words mark a turning point in the search for Middle
East peace.

He said the United States has long urged the Palestinian leadership to
take steps to fight terror.

"All parties have responsibilities in the Middle East and we want all
parties to meet those responsibilities," he said. "And fighting
terrorism and ending the violence is critical to moving forward on
building the institutions for a viable state to emerge."

He said the White House always welcomes steps that are aimed at
fighting terrorism, noting President Bush has talked often and at
length about the need to end violence in the region so ultimately
there can be two states living side by side in peace: Israel and
Palestine.

"We remain focused on working toward a strategy that will put in place
the institutions necessary for a viable state to emerge," Mr.
McClellan said. "But fighting terrorism and putting in a unified
security force are key."

The statements by Mahmoud Abbas came in an interview published Tuesday
with London-based Arabic newspaper Asharq al-Awsat. He said
Palestinians should continue to resist Israeli occupation, but the use
of weapons was a mistake and must stop.

His comments followed accusations from Israel that Palestinian leaders
were not doing enough to rein in militant groups, who have carried out
a number of attacks in recent days.

On Sunday, Palestinian militants staged a bloody attack on Israeli
troops, setting off an explosion in a tunnel beneath an army base.
Five soldiers were killed, and Israel responded by demolishing several
buildings in the Gaza Strip.
Snuffysmith
UN Envoy Optimistic About Sudan Peace

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Jan Pronk says he believes there is at least a 60 percent chance that
final peace accord for southern Sudan could be signed by December 31

Jan Pronk U.N. envoy to Sudan Jan Pronk says he remains optimistic
that the Sudanese government and southern-based SPLA rebels will keep
their promise to sign a comprehensive peace deal by the end of the
year

In an interview with a Dutch newspaper, Jan Pronk says he believes
there is at least a 60 percent chance that a final peace accord for
southern Sudan could be signed by December 31. The U.N. envoy cited,
what he termed, a good atmosphere at the talks in Kenya.

More than two years of negotiations have resulted in agreements on
several key issues, such as wealth and power sharing. Mr. Pronk says
he is extremely hopeful the two sides can overcome the last remaining
obstacle on how to create a new national army that includes rebel
troops from the south.

Last month, the Sudanese government and the rebel Sudan People's
Liberation Army pledged they would have a comprehensive deal by the
end of the year. They made the promise during a special meeting of the
U.N. Security Council in Nairobi, which pressured the warring parties
to move forward with the talks.

The latest round of high-level negotiations between Sudanese Vice
President Ali Osman Taha and rebel leader John Garang began last week.
Sudanese officials at the talks could not be reached for comment, but
the spokesman for the SPLA, Samson Kwaje, says his group is committed
to meeting the December 31 deadline.

"The talks are going on well," he said. "There are difficulties, but I
think that we still have enough time to overcome them. Most of the
committee works have been finished, and by today they ought to be
submitted to Vice President Ali and Dr. Garang."

This is not the first time the two sides have issued a self-imposed
deadline for reaching a final agreement. Last December, Khartoum and
the SPLA missed another end-of-the-year deadline for a deal they had
pledged themselves to in a previous meeting with Secretary of State
Colin Powell.

Since then, Washington has applied constant pressure on the warring
parties, withdrawing its observer from the Naivasha talks and
threatening to impose sanctions if good-faith efforts are not made to
reach a final settlement.

Ending Africa's longest-running civil war is seen as a critical step
toward resolving a bloody, nearly two year-old rebellion in the
western Darfur region of Sudan.

The two wars largely pit black Africans in southern and western Sudan
against the Arab-dominated government in Khartoum. Rebels in both
regions say they are fighting for, among other things, racial and
political equality and a greater share in the country's oil wealth.

The war in the south has killed two million people, mostly through
hunger and disease. The United Nations estimates the war in Darfur has
killed 70,000 civilians.

U.N. envoy Pronk says if a peace deal for the south can be reached, it
may convince the rebels in Darfur that it is possible for them to lay
down arms and negotiate with the government as well.
Snuffysmith
Bush to Meet French Foreign Minister in Washington

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Visit underscores new effort to improve transatlantic ties since Bush
re-election

French FM Michel Barnier French Foreign Minister Michel Barnier
arrives in Washington Wednesday for a one-day visit that underscores a
new effort to improve transatlantic ties, since the re-election of
President Bush. A number of differences remain.

Mr. Barnier's 24-hour visit to Washington marks his first official
trip for bilateral talks with U.S. officials since being named
France's top envoy in March. The visit is being billed as a chance to
say good-bye to outgoing U.S. Secretary of State Colin Powell and
hello to Mr. Powell's successor, Condoleezza Rice.

But analysts such as Bruno Tertrais, a researcher at the Paris-based
Foundation for Strategic Research, believe Mr. Barnier's visit has
another aim as well. "I think the first message that will be conveyed
by Barnier during his trip is that we understand that the American
people have spoken, and were willing to work with the President
[Bush]. Our strategy is not to be an obstacle to American foreign
policy even though we have our disagreements," he said. "We have
enough common interests that we need to work together and we are ready
to work together and improve our relations."

Ties between the United States and France reached a low point during
last year's U.S.-led war in Iraq, which Paris staunchly opposed. But
in recent months, there have been signs of warming relations, not only
with France, but with other European opponents to the war.

In a concession to the United States last month, France and other
Paris Club creditors agreed to cancel 80-percent of the debt Iraq owed
them. Paris and Washington have also collaborated in other matters,
like a joint United Nations resolution demanding the withdrawal of
Syrian forces from Lebanon.

And officials say that bilateral cooperation in areas such as NATO
operations in Afghanistan or the war against terrorism has always been
good, despite diplomatic differences on Iraq.

With President Bush's re-election last month, some experts say, France
and other European countries now want to turn a fresh page in their
transatlantic dialogue with the United States.

Pap Ndiaye, an analyst of U.S.-French relations at the Ecoles des
Hautes Etudes de Sciences Sociales, in Paris, compares low-key Mr.
Barnier to former French foreign minister Dominique de Villepin, who
enraged Washington with his passionate, anti-Iraq war speeches.
Clearly Michel Barnier represents the hope for a new start, even if
some of the most contested matters between France and the U.S. are
still at stake," he said.

Those differences range from ways to fight global warming to how to
deal with Iran. The Bush administration remains skeptical on whether
European diplomacy can get Tehran to abandon its alleged nuclear
weapons program.

And last week, Secretary of State Powell criticized France and several
other European nations for refusing to participate in a NATO-led
training mission in Iraq.
Snuffysmith
Congo Says Army Fighting Rwandans, Not Own Units

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Even though Rwanda denies it is involved in fighting, UN workers say
tens of thousands of civilians have fled region The Democratic
Republic of Congo says recent fighting in eastern Congo was the result
of a Rwandan attack and not internal army clashes. Even though Rwanda
denies it is involved in fighting, U.N. workers say tens of thousands
of civilians have fled the region.

The Democratic Republic of Congo denies claims that heavy fighting in
the east of the country during the past two days was the result of
mutinous elements of the army attacking each other.

Government spokesman Henri Mova Skanyi says the clashes in
Kanyabayonga, 180 kilometers north of Goma, were the result of an
attack by the Rwandan army. He says Rwandan troops are in Congo to
fight alongside former rebels Rwanda had backed during Congo's civil
war.

Rwanda has denied the spokesman's claims, saying the fighting is
purely an internal problem for Kinshasa to resolve.

The clashes in North Kivu follow the Kinshasa government's attempts to
redeploy thousands of soldiers near the border with Rwanda. Earlier,
Rwanda threatened to send its army into Congo to hunt down Hutu
rebels.

U.N. sources say they believe the Congo government reinforcements were
forced to retreat to the north, the direction they had come from.

A five-year war in Congo was officially declared over last year, but
the transitional Kinshasa government is struggling to lead the country
to elections, due next June. Army integration of the former rebels has
failed to take off, leaving several-hundred-thousand gunmen roaming
around the country, largely out of control.

An international aid agency last week reported that the war and
subsequent insecurity has killed 3.8 million people, mostly from
hunger and disease.

Aid workers in Congo say the 35,000 residents of Kanyabayonga fled
their homes as a result of the recent fighting, adding to an already
dire humanitarian crisis.
Snuffysmith
Ethiopia Warns Eritrea Not to Wage War Over Border

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Ethiopian spokesman says Eritrea should talk, not fight, to try to end
two countries' long-running border dispute Ethiopia has warned
Eritrea not to go to war over their disputed boundary, a situation
Eritrea says is hypothetical.

Ethiopian Ministry of Information spokesman Zemedkun Tekle told VOA,
neighboring Eritrea should talk - not fight - with Ethiopia to try to
end the two countries' long-running border dispute.

"If what they are saying is, 'We [Eritrea] are going to take military
action,' that is not a good option - that is not an option which
brings lasting peace," he said. "Let us negotiate, let us try to solve
the issue of the border conflict."

Meanwhile, Eritrean presidential spokesman Yemane Gebremeskel told VOA
he would not comment directly on whether or not his country would go
to war over the disputed boundary, saying that the question was, in
his words, hypothetical.

But, he said, the border dispute has reached a critical point that
must be resolved immediately.

"Ethiopia is occupying sovereign Eritrean territory," he said. "If one
country is forcibly occupying sovereign territory of its neighbor, the
situation cannot be peaceful."

The two countries had waged a bitter war over their border from 1998
to 2000, during which about 70,000 people were killed.

Under a peace agreement signed in 2000, the independent
Eritrea-Ethiopia Boundary Commission was created to mark the
1,000-kilometer border, while more than 4,000 U.N. peacekeepers were
dispatched to ensure stability in the border region.

The commission subsequently ruled that an area called Badme be awarded
to Eritrea, a decision Ethiopia rejected last year, effectively
stopping the demarcation process.

Ethiopian Prime Minister Meles Zenawi recently announced that his
country would recognize the boundary commission's ruling as part of a
five-point peace plan that also calls for dialogue and improved
diplomatic relations.

In a December 4 statement, Eritrea rejected Ethiopia's peace plan,
saying that the demarcation of the border should not be linked to
dialogue and normalization of relations. The statement sparked Prime
Minister Meles to tell the press Monday that he urges his neighbor not
to go to war.

Eritrean spokesman Mr. Yemane explains why his country thinks
demarcation should not be linked to peace talks.

"What does Ethiopia mean by talking," he asked. "How can you
renegotiate, re-discuss a court decision that both agreed is final and
binding that was reached on the basis of accepted international law?
Ethiopia is talking about dialogue because they do not want to
implement that decision because they do not want to respect the
agreement they have signed."

Meanwhile, Ethiopian spokesman Mr. Zemedkun says the border issue is
part of a larger conflict between the two countries and therefore
needs to be addressed using, what he calls, a holistic approach within
the framework of the peace plan.
Snuffysmith
US Central Bank Boosts Interest Rates Again

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Federal Reserve Tuesday raised short-term interest rates for fifth
time in six months to 2.25 percent The American central bank, the
Federal Reserve, Tuesday raised short-term interest rates for the
fifth time in six months. Even with the quarter point increase
short-term rates are a still-very-low 2.25 percent.

Financial markets anticipated the increase and in New York an advance
in stock prices accelerated when the news was announced. U.S. equity
prices, measured by the Standard and Poor's Index, are at their
highest level in three years. In its statement, the Federal Reserve
said improving economic conditions meant that further, modest rate
increases are likely. Rates are being restored to more normal levels
closer to the rate of inflation after having been at their lowest
levels in 46 years.

The central bank says output in the U.S. economy is growing at a
moderate pace and that labor market conditions are improving
gradually. It says inflation, even with higher gasoline prices, is
being held in check.

Bill Gross, who manages the world's biggest mutual fund investing in
fixed income securities, expects the Federal Reserve will move more
slowly in raising rates during the first half of 2005.

"I think there are a number of structural head winds that the Fed
themselves have talked about. They include the waning of budget
stimulus and tax cuts, the fact that oil prices have gone up, the fact
that the dollar has gone down," he noted.

Currently, the U.S. economy is growing at a four-percent pace and is
in the third year of an economic recovery. Inflation has been creeping
up to a current 2.5 percent annual rate. The economy continues to
create jobs but at a pace below what most economists had predicted.
Snuffysmith
Thailand Looks to Neighbors for Better Management of Illegal Labor

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Thailand, which has for years relied on illegal migrant workers to
meet labor shortfalls, plans to create a program to register migrants,
and make sure they have proper documentation Thailand hopes to better
manage undocumented migrant labor by stepping up cooperation with its
neighbors, Cambodia, Laos and Burma. The moves also are aimed at
reducing human rights abuses of migrant workers.

Thailand, which has for years relied on illegal migrant workers to
meet labor shortfalls, plans to create a program to register migrants,
and make sure they have proper documentation.

Thapabutr Jamasevi is the deputy permanent secretary at Thailand's
Ministry of Labor. He says the plan is prompted by concerns about
having a large mobile population living illegally in the country.
"During the last four to five years there's been a large influx of
undocumented workers from neighboring countries," he said. "We don't
know where they are so it may have a negative impact on our national
security, social, economics and human rights. So we decided to
legalize them."

Since the late 1980's, Thailand has relied on cheap labor from poor
neighboring countries - primarily Cambodia, Laos and Burma, to help
power its economic growth. Some enter the country legally, but
hundreds of thousands work illegally.

A temporary amnesty offered by the Thai government earlier this year
led to one-point-two million foreign workers - the majority from Burma
- being registered.

Hugh Oldhams, who heads the International Labor Organization Regional
Office for Asia and Pacific, said recently that better management of
migrant labor is needed as the region's economies became more
integrated. "Migration serves as a force for growth and development;
at the same time we're looking for ways to protect migrant workers
from exploitation and abuse," stated Mr. Oldhams. "This requires sound
migration management."

Thailand has signed agreements with Laos, Cambodia and Burma to get
some control over migrant flows. Each country is examining options for
providing migrants with special documentation and rights.

But Piyasiri Wickramasekara, a migration specialist with the
International Labor Organization in Geneva, says the program will fail
unless governments devote enough resources to it. "Thailand has
mentioned it will give equal protection to migrant workers under the
new scheme," he said. "But there should be adequate infrastructure -
they should have adequate labor inspection services to go to these
work places to see whether there is the same conditions."

Malaysia also has more than million undocumented workers from
neighboring countries - mostly Indonesia and the Philippines. The
Malaysian government has been internationally criticized for its
strategy of mass expulsions of illegal laborers.

The New York group Human Rights Watch has called on the Malaysian
government to rescind plans to allow members of volunteer security
associations to conduct immigration raids and arrests. Human Rights
Watch says the plan to arrest and deport illegal migrants, which
begins in January, may lead to rights abuses.

In 2002, Malaysia expelled thousands of illegal workers, but dozens of
them perished from dehydration and illness while being detained in
transit areas.

Mr. Wickramasekara says such strategies breach international practices
and law. "The ILO instruments, the U.N. [United Nations] human rights
instruments are very clear - there should be no mass deportations
because workers in irregular status also have certain rights," he
said. "There should be no collective expulsions and they should be
entitled to due process of law."

There is a dark side to the region's illegal migration. Abuse has been
widespread in Thailand, with workers forced into the sex industry or
sweatshop labor. Migrants have been murdered, raped and cheated of
their pay.

In 2002, Thai police investigated the murder of dozens of Burmese -
including children - in incidents linked with illegal labor and
factories or plantations near the Burmese border.

Later in the year, police uncovered the charred remains of six Burmese
migrant workers in the western province of Tak. Witnesses said the men
had been beaten before being shot.

Thai police have also been accused of abusing Burmese immigrants,
arresting them outside factories and sexually assaulting Burmese women
being held for deportation.

Thailand's National Human Rights Commissioner, Pradit
Charoenthaitavee, says without legal protection the abuses will
continue. "Due to the lack of legal protection the migrant workers
suffer many injustices," he said. "Example of this is non-payment of
service rendered, restriction on freedom of movement, deprivation of
rest and leisure time and the right to a standard of living adequate
for health and well-being."

Thailand, Laos, Burma and Cambodia are hoping their joint efforts will
curtail the abuse.

But workers' advocates stress that success will require effective
implementation and government support to ensure migrant workers'
rights are upheld to avoid further abuse.
Snuffysmith
Bush Awards Presidential Medals of Freedom

http://enews.voanews.com/t?ctl=A716E6:2F72C9D

President presented awards to former CIA Director George Tenet, former
US Administrator in Iraq Paul Bremer, and former US Commander in Iraq
General Tommy Franks President Bush has awarded America's highest
civilian honor to three men who were instrumental in the U.S.-led
invasion of Iraq.

Presidential Medal of Freedom ceremony at White HousePresident Bush
gave the Presidential Medal of Freedom to former CIA Director George
Tenet, former U.S. Administrator in Iraq Paul Bremer, and former U.S.
Commander in Iraq General Tommy Franks.

"These three men symbolize the nobility of public service, the good
character of our country, and the good influence of America on the
world," the president said.

Director Tenet stepped down as head of the CIA this year, ending a
tenure that began under former President Bill Clinton. The CIA
provided much of the intelligence leading up to the invasion of Iraq,
with Director Tenet reportedly telling cabinet members that
information about Iraq's weapons of mass destruction was a "slam
dunk."

Since the fall of Baghdad, U.S. inspectors have concluded that Iraq
did not have