Hot money flows into China

Hot money flows into China

By Geoff Dyer in Beijing

Published: July 3 2008 18:08 | Last updated: July 3 2008 18:08

On the face of it, China might not seem the obvious place to invest at the moment. The local stock market has collapsed, property markets are weak and the interest rate on bank deposits is about half the rate of inflation.

Yet that has not prevented a record flood of capital inflows even higher than China’s huge accumulation of reserves in recent years. In the first quarter, foreign exchange reserves rose by $154bn (€98bn, £78bn). On top of that, according to usually reliable figures leaked to Reuters, reserves jumped by $75bn in April and $40bn in May to a total of $1,800bn.

Given that the inflows far outstrip trade and direct foreign investment, China appears to be receiving vast amounts of speculative “hot money”.

China has two big attractions for foreign investors – interest rates are higher than in the US and the currency is expected to appreciate. “China’s FX reserves seem to have turned into some kind of massive black hole for the world’s liquidity,” says Stephen Green, economist at Standard Chartered.

The huge armoury of reserves was actually designed to withstand the volatile capital flows that helped cause the 1997 Asian financial crisis. However, ever-mounting reserves bring their own economic risks – inflation could be aggravated if the inflows cannot be managed and the financial system could suffer whiplash if investors decide to withdraw funds all at once.

Just how big a problem they present depends on how much of the reserve accumulation is the result of hot money, however that requires a lot of guesswork because the official numbers are not transparent.

Some of the big increase in headline reserves could be explained by accounting issues, such as the inclusion in reserves of reinvested profits from bond holdings or an increase in the recorded market value of the overseas assets in which Chinese reserves are invested.

Yet some economists believe the official numbers might actually understate the hot money inflows.

As part of the creation of China Investment Corporation, a $75bn-$100bn chunk of reserves was transferred to the new sovereign wealth fund. If most of that transfer took place in the first quarter of this year – as some analysts believe – then the surge in hot money inflows has been even higher.

Logan Wright at Stone & McCarthy analysts in Beijing estimates that hot money entering in the first five months could be as high as $150bn-$170bn.

There are plenty of legal routes to bring capital into China. Foreign residents can deposit up to $50,000 a year and Hong Kong residents have a much higher quota.

But government officials also believe that illegal transfers are taking place – through foreign companies declaring that funds are for direct investment and then putting the money in the bank and exporters exaggerating the value of overseas revenues in order to bring in extra funds. (As an aside, economists point out that if fraudulent export receipts really are widely used to bring in hot money, China’s politically troublesome trade surplus would actually be much lower than thought.)

The authorities announced a new crackdown on this trade route on Wednesday, saying that exporters would not actually receive payment until they could prove to their bank that revenues were the result of real trade transactions recorded by Chinese customs.

However companies and analysts were sceptical that the new capital controls would limit illegal capital flows. One exporter in Beijing said that simply checking documents given to the customs would not expose exaggerated invoices: inspectors would need to examine the actual value of the cargo itself to prove fraud. More­over if this new process is rigorously applied, the risk is that it will increase the burden on genuine trade.

China’s central bank has faced huge capital inflows for several years and has so far managed to limit the impact on the domestic economy by draining the excess liquidity in the financial system through bonds issues and obliging commercial banks to deposit more money in reserves.

However, there are some signs that the system for sterilising inflows is reaching its limit. The higher reserve requirements are putting heavy pressure on some cash-poor, smaller banks.

Minggao Shen at Citigroup says that the only countries in the world with higher reserve ratios are Zambia, Croatia and Tajikistan and that Chinese levels cannot go much higher.

Moreover, the difference between Chinese and US interest rates means that the central bank is making a loss on its bond issues, which have been rare in recent months.

If the system of sterilising inflows is becoming hard to operate, then the Chinese authorities could find themselves in a trap. Facing inflation at home, the obvious response is to appreciate the currency or raise interest rates. But both those options attract more hot money that will feed inflation.

“We are passed the point when there were easy solutions,” says Michael Pettis, a finance professor at Beijing University.

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IRS to seek accountants’ help on evasion

By Joanna Chung in New York

Published: July 4 2008 02:10 | Last updated: July 4 2008 02:10

The US Internal Revenue Service is to solicit the help of the world’s top accounting firms in its widening effort to clamp down on offshore tax evasion.

The IRS is planning to speak on Tuesday to six accounting firms about how they could help find foreign banks that fail appropriately to identify US customers holding investments or income in offshore accounts, according to people briefed on the plan. A conference call has been scheduled between the agency and Deloitte, Ernst & Young, KPMG, PwC, Grant Thornton, and BDO Seidman, they say.

The move comes amid the continuing investigation by US authorities into UBS and whether the Swiss bank helped wealthy US clients avoid their tax obligations. Some experts say the UBS probe is part of a greater effort to ramp up enforcement of US tax compliance globally.

The IRS declined to comment on the conference call on Thursday. All the firms were contacted on Thursday but either declined to comment or were not immediately available.

But the discussion is expected to centre on the so-called US Qualified Intermediary programme, which created an arrangement starting in 2000 between banks and the US authorities allowing a degree of client confidentiality in return for the provision of certain client information. The US rules cover individuals but not companies, meaning that individuals could exploit the rules to channel assets to non-declarable companies created in tax havens.

The IRS has greater assurance that taxes are properly withheld “because QIs agree to have external auditors perform oversight of their compliance with required procedures”, according to a 2007 report by the Government Accountability Office, the investigative arm of the US Congress. But it also said: “Within their limited scope, auditors of QIs are not responsible for following up on possible indications of fraud or illegal acts.”

On Tuesday, a federal judge gave the IRS permission to serve a “John Doe” summons on UBS that would direct the bank to produce records identifying US taxpayers who held undeclared accounts between 2002 and 2007 with the bank and chose to have them hidden from the IRS.

UBS said it “looks forward to working with the IRS to address the summons”, adding: “UBS takes this matter very seriously and is working diligently with both Swiss and US government authorities, consistent with Swiss law and the legal frameworks for intergovernmental co-operation and assistance.”

An IRS spokesman said on Thursday: “We will serve the summons within the next several days.”

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Threat of disruption hangs over US ports

By Robert Wright, Transport Correspondent

Published: July 3 2008 11:43 | Last updated: July 3 2008 11:43

Vital west coast ports in the US could face significant disruption after a key contract between workers and employers expired and unions refused to allow a temporary extension.

The six-year contract for the 29 ports in California, Oregon and Washington states expired at 5pm Pacific Time on Tuesday without agreement on a new contract between employers and the International Longshore and Warehouse Union.

The Pacific Maritime Association, which represents port employers, has asked for a temporary extension to the contract, which would keep the union bound to clauses ruling out strikes and go-slows and allowing for arbitration of local disputes. However, the union has rejected the calls, leading the PMA to fear workers could start working slowly or otherwise disrupting port work.

The ports covered by the contract include the twin ports of Los Angeles and Long Beach, which together account for 40 per cent of the US’s container imports and are the country’s main gateway for trade with China.

The ports were shut down for 10 days during the last contract negotiation in October 2002 in an episode estimated to have cost the US economy $15bn. The PMA locked unions out after it claimed they had been deliberately working slowly during a three-month contract extension designed to allow time for negotiation of a new contract. The lock-out was ended by President George W. Bush using his powers under the Taft-Hartley Act governing labour relations.

The PMA said late on Wednesday that, while the union had said it would keep working normally following the expiry of the latest contract, it regretted their refusal to agree to a formal extension.

“An extension would have sent a much stronger message to the shippers and the public that the West Coast Ports will continue to operate without disruption,” it said.

Negotiations for a new contract started on March 17 and both sides have consistently sounded positive about the prospects of reaching an agreement. They announced a preliminary agreement on pensions and healthcare - major sticking points in other US industrial disputes - on June 17.

However, the most contentious issue in the ports is likely to be the role of new technology. Many ILWU members currently have highly-paid jobs as clerks checking containers or in other roles that ports elsewhere in the world have abolished through using better technology. The ILWU has persistently resisted the introduction of technology it believes threatens jobs.

The ILWU said after the contract expiry that its members would keep loading and unloading cargo to keep the ports working.

“ILWU’s negotiating committee will continue working hard to reach a fair and reasonable agreement,” it said.

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Repsol chief calls for unified energy policy

By Carola Hoyos and Mark Mulligan

Published: July 3 2008 22:41 | Last updated: July 3 2008 22:41

The head of Spain’s biggest energy company has lambasted European politicians’ inability to formulate a unified energy policy. Antonio Brufau, executive chairman of Repsol, said on Thursday Europe needed to consider energy as an integral part of its foreign policy.

He criticised Europe’s lack of cohesion when dealing with powerful oil and gas producers such as Russia and Algeria. In an interview with the FT, he also said the European Union’s biofuels targets were misguided, and questioned Europe’s failure to develop a cross-border gas and electricity network.

“In terms of energy, Europe is not advancing in the right direction,” he said. “We have to have one single voice, one single policy, one single market.” The fact that Germany negotiated bilaterally with Russia for gas showed that “Europe was failing”, he said.

He warned that the balance of power could tip in favour of energy producers if Europe failed to present a united front. “We have to look closely at the balance between national oil companies and international oil companies. Do [European] markets belong to Gazprom, or to the international oil companies of Europe?”

Although individual companies still had to negotiate their own supply contracts, he said a common energy policy among European states would help set the framework for these negotiations. “If Europe spoke with one voice, then there would be more equilibrium between it and the producer countries.”

Mr Brufau said this lack of unity was also reflected in EU directives on alternative energy sources, which often failed to draw on the experience of member states. Efforts by the EU to increase production of bioethanol, for example, were misguided, as it replaces gasoline, which is in surplus, but fails to tackle the shortage of diesel fuel. “If Europe produces bioethanol it will not reduce by one barrel its oil imports. If Europe produces biodiesel it will reduce its oil imports.”

The Repsol head also questioned how much technical analysis had gone into Europe’s 20/20/20 target, which calls for 20 per cent of energy to come from renewable sources, and a 20 per cent improvement in efficiency by 2020. “Why not 22/18/17?” he asked, noting these issues needed to be treated scientifically rather than like “a game of bingo”.

Carbon capture will be critical. But the system by which carbon is stored is still prohibitively expensive.

Mr Brufau noted that the US was funding research on this issue with state money, but that Europe was refusing to do so. “Europe is already subsidising many things. The question is: should we be subsiding agriculture or new technologies?”

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San Miguel in $1bn food deal with Kuok

By Roel Landingin in Manila

Published: July 3 2008 10:35 | Last updated: July 3 2008 10:35


Staple diet: the $1bn partnership will develop land to produce crops such as rice in the Philippines, which has been hit hard by rising prices

San Miguel and Malaysia’s Kuok Group on Thursday announced plans to invest about $1bn to develop a million hectares of public land to help boost production of rice, corn, sugar and other crops in the Philippines.

The country is the world’s biggest rice importer and has been one of the hardest hit by the rising prices of food and fuel.

Inflation surged to a nine-year high of 9.6 per cent in May compared with an average of 2.9 per cent in the whole of 2007.

The central bank raised policy rates last month and has signalled it may do so again in the next few months.

San Miguel is the Philippines’ biggest food and drinks maker.

Eduardo Cojuangco, its chairman, and Robert Kuok, head of the Kuok Group that runs the Shangri-La Hotels chain, signed a memorandum of understanding to help Manila boost food production by committing to invest $1bn in agribusiness ventures.

They will use idle lands owned by the government.

San Miguel said the partnership will be run as a business venture rather than philanthropy.

Close personal ties between Mr Cojuangco and Mr Kuok – their companies have no joint ventures in the Philippines – helped firm up the partnership, San Miguel said.

The agreement, called Feeding Our Future, was signed during the groundbreaking for Shangri-La Hotels’s fifth hotel in the Philippines – a 60-storey tower that will house 500 guest rooms and 234 apartments at the Fort Bonifacio complex, a former army base that the government is redeveloping into a new business district.

Mr Cojuangco and Mr Kuok are expected to sign agreements with four government agencies, including the armed forces, which will identify and allocate unused land holdings and reservations for the programme.

Officials said that details, such as when the investments are to be made and food production targets, will be thrashed out at a later date.

The initiative is the biggest private corporate response so far to the rice and food price crisis in the Philippines and is reminiscent of a 1970s-era programme launched by Ferdinand Marcos, who ordered companies to run rice farms to ensure supply of the staple for their employees.

Ramon Ang, the president of San Miguel, said: “Food security is a global issue. But here in the Philippines, we are feeling the effects even more.”

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YouTube told to hand over users' data

MATT HARTLEY

From Friday's Globe and Mail

July 3, 2008 at 9:01 PM EDT

Google Inc. has been ordered to disclose reams of data detailing the personal video-watching habits of YouTube users in a landmark court decision that critics say could potentially identify millions of people around the world and erodes expectations of privacy on the Internet.

Yesterday, U.S. District Court Judge Louis Stanton ordered Google, the search engine giant that owns YouTube.com, to hand over records detailing every video watched by YouTube users and when they were watched to Viacom Inc. as part of the cable company's $1-billion (U.S.) lawsuit against the tech titan.

Privacy advocates on both sides of the border say the judge's decision sets a dangerous precedent about who should have access to the user data Google keeps in its vast warehouses of servers, and could lead to personal information falling into the wrong hands.

Although the case is being heard in U.S. court, the judge set no specific geographic limitations on the data Google must produce, meaning user names and Internet protocol (IP) addresses of millions of Canadians and other YouTube users outside the U.S. could also be at risk.
Google

Viacom Inc.

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“We are disappointed the court granted Viacom's overreaching demand for viewing history,” Google's senior litigation counsel Catherine Lacavera said in an e-mail. “We will ask Viacom to respect users' privacy and allow us to anonymize the logs before producing them under the court's order.”

Viacom – which owns the MTV and Comedy Central television networks – and a group of other parties are suing Google for allowing clips of copyrighted videos to appear on YouTube.

The information in Google's databases is crucial to Viacom proving that its copyrighted videos – which include clips from television programs such as South Park and The Colbert Report – are more popular than user-generated clips on YouTube, the world's most popular video-sharing site.

The New York-based media conglomerate says the data it receives will be used only for the purpose of proving its case against Google, and that it will not seek to identify any individuals.

Although the judge cited a post on the Official Google Blog, which stated that in most cases an IP address and user name aren't enough to identify a user, that assertion isn't entirely accurate, according to Orin Kerr, a law professor at George Washington University and an expert in digital privacy.

Many people include parts of their name, their birthday or other personal information in their user IDs on the Internet, which could be used to identify a user, he said.

“The court was wrong in thinking that user IDs are not personally identifiable,” he said. “I assume this will go to a court of appeals and I suspect it will be reversed under the Video Privacy Protection Act. Viacom doesn't need most of this information, they really only need the parts relating to Viacom, so this order strikes me as incredibly over-broad.”

Google has not said whether it will appeal. The Mountain View, Calif.-based company had argued that releasing the data would amount to an invasion of its users' privacy; the judge, however, dismissed that notion as “speculative.” Google's database keeps track of when each video is watched and the user ID and IP address of the viewer.

Google said collecting the 12-terabytes of data – equivalent to 12,000 1 GB memory cards – Viacom has requested would be both time consuming and expensive.

However, the judge seems to have ignored elements of the U.S. VPPA – which was enacted to keep individuals' video-renting histories private – in making his ruling, said University of Ottawa e-commerce law professor Michael Geist.

“It's sending shockwaves around the Internet,” he said. “The very notion that such detailed personal information could be forcibly divulged by YouTube runs counter to the expectations of users and presents a huge privacy hole for many.”

Google purchased YouTube in 2006 for $1.65-billion (U.S.) and watched it grow into the largest video website on the Internet, with more than 70 million users in the U.S. alone and 2.5 billion videos watched around the globe every month.

Viacom had also sought access to Google's computer source code, the secret sauce that powers the search functions on both YouTube and Google.com, the company's search engine. The judge denied that request.

The judge ruled that disclosing Google's source code could cause “catastrophic competitive harm” to the company. He also denied a request for Google to produce the code it uses to scan for copyrighted material. Viacom wanted to use it to show what Google could be doing to combat piracy, but isn't.

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European Union nears its political death
03.07.2008 Source: Pravda.Ru URL: http://english.pravda.ru/world/europe/105679-european_union-0

The European Union is literally falling apart. Poland and the Czech Republic refused to sign the Lisbon Treaty after Ireland did the same. Germany’s decision to delay the approval of the Treaty became another fly in the ointment. It is only the USA that benefits from such a state of affairs in the EU. The United States will be able to weaken the European Union through the deployment of its missile defense system in Europe. On the other hand, Czech President Vaclav Klaus has his own reasons to have no special liking of the Lisbon Treaty, without Washington’s implication whatsoever.

European experts were originally concerned about Poland’s unpredictable behavior. However, the reaction of Polish President Lech Kaczynski turned out to be a lot more unpredictable than anyone could ever expect. It is worthy of note that it happened after Brussels had agreed to make all possible concessions on the European Constitution to Warsaw. The whole of Europe breathed with relief when Poland signed and ratified the Lisbon Agreement in December 2007.

There was very little left for Lech Kaczynski to do: to put his signature once again on the document which he had already approved. However, it suddenly occurred to him that Poland did not need the Lisbon Treaty at all. The Lisbon Treaty became useless in an instant. Poland refused to sign the Treaty on July 1, when France replaced Slovenia as the chairing state of the European Union.

Poland thus became a thorn in the side of not only Europe on the whole, but French President Nicolas Sarkozy in particular. Sarkozy has too many home problems to deal with. Now he has to think about a way to preserve the unity of the European Union without undermining France’s authority.

Germany delayed the signing of the Lisbon Treaty too. The unexpected complication occurred in the Constitutional Court of Germany, which received several lawsuits questioning the conformity of the Treaty with the German Constitution. Far-right political forces and even former communists believed that the Lisbon Treaty restrains Germany’s interests and brings positive changes only to new members of the European Union.

Like Germany, the Czech Republic has big doubts about the need to sign the Lisbon Treaty. Czech President Vaclav Klaus described the events with the Lisbon Treaty as its funeral. The president also said that the negative outcome of the referendum on the Lisbon Treaty in Ireland marked the victory of democracy and reason over the European bureaucracy. Klaus believes that the ratification of the Lisbon Treaty must not be continued after the negative voting in Ireland.

The Lisbon Treaty may thus come into effect at the end of the current year at best. Other members of the European Union will have enough time to question the need of signing the document.

Poland has preserved its previous political course and the aspiration to prove that it is not the last country in Europe. Poland used to put obstacles on the way of EU-Russia relations. Nowadays, it puts a spoke in the wheels of the European Union.

Some may recall the glorious Soviet times, when Poland virtually destroyed the Council for Mutual Economic Assistance. It seems like Poland is now willing to do the same with the European Union. Western experts do not rule out a possibility that Poland will offer France a different deal. It may agree to approve the Lisbon Treaty in return to Ukraine’s membership in NATO.

It is an open secret that Poland and the Czech Republic have been closely cooperating with the USA on the missile defense issue recently. To put it in a nutshell, these two countries have been playing to the tune of the USA despite the concerns of other EU members.

However, unlike his Polish counterpart, the Czech president has not been following USA’s directions strictly. Vaclav Klaus did not support the bombing of Yugoslavia in 1999. He stood up against the war in Iraq and the recognition of Kosovo’s independence. In addition, Vaclav Klaus does not share the stance of approaching the European Union as a supranational structure. Quite of the contrary, Klaus supports the idea of Europe of separate states.

As for the missile defense issue, even a kid understands that it is insane to intercept North Korean or Iranian missiles over Europe. To crown it all, it is ridiculous to believe that ten interceptors will be able to stop hundreds of Russian ballistic missiles. It is not ruled out that the USA plans to deploy its missile defense system in Europe because the missiles will be aimed at Europe itself, not against Iran or Russia.

Sergei Balmasov, Vadim Trukhachev
Pravda.ru

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６月の景況感、「悪化」69％に上昇　日銀生活意識調査

　日銀が４日発表した６月の「生活意識に関するアンケート調査」によると、１年前に比べて現在の景況感が「悪くなった」と答えた人の割合は69.0％と前回３月調査から8.9ポイント増えた。

　原材料高を受け、食料品や日用品など身の回り品の価格が上昇していることが消費者心理の悪化につながったようだ。現在の物価が１年前よりも「上がった」との回答は6.2ポイント増の92.1％に達した。

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公的年金、運用損失５兆8000億円に　07年度

　2007年度の公的年金の積立金の市場運用利回りがマイナス6.41％と5年ぶりにマイナスになったことが3日分かった。米国の信用力の低い個人向け住宅融資（サブプライムローン）問題を背景に、国内外の株安が直撃。運用損失は5兆8000億円に達した。運用低迷が長引けば、将来の国民負担につながりかねない。

　年金積立金管理運用独立行政法人（ＧＰＩＦ）が4日午後に発表する。資産別に運用利回りを見ると、最も成績が悪かったのが国内株式でマイナス27.97％。外国株式は円高の影響も加わり、マイナス17.1％だった。

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飼料米、種子を緊急確保　農水省

　農林水産省は家畜の餌にする飼料用米の需要拡大に備え、種子の緊急確保に初めて乗り出した。輸入トウモロコシの国際価格上昇を受けて、コメを使った飼料の需要が高まっているのに対応。政府保有の輸入米を飼料用に振り向けるだけでなく、国内で安定的に生産できるようにする狙いだ。2008年産の主食用米も生産調整の計画が順調でないため、飼料用への転売を促す。

　具体的には、9月にも収穫が始まる08年産で、収穫量の多い品種の飼料用米について、農家が全量を販売せずに、一部を翌年用の種子に使うために残すよう要請した。どの程度、需要があるかを都道府県などが把握し、不足分は8月末までなら翌年用の種子用として種苗業者に販売できるようにする。

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生産者団体、牛乳の再値上げ要請

　関東生乳販売農業協同組合連合会（関東生乳販連、東京・文京）など、生乳の生産者団体は3日、4月に上げたばかりの生乳価格（乳価）の再引き上げを求めて乳業大手と交渉に入った。1キロ当たり10円（10％）の値上げを要請している。乳価の改定は通常年1回だが、飼料価格の高騰で酪農家の経営難が深刻化しており、異例の期中値上げを求める。

　関東生乳販連以外の生産者団体も9―10％の値上げを打ち出した。飲用のほかバターなどの加工用も含む。10月出荷分からの実施を目指す。

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米ヒルトン、50ホテル日本で展開　2017年までに

　ホテル運営チェーンの世界大手、米ヒルトン・ホテルズ・インターナショナルは日本で最上級ホテルからビジネスホテルまで9ブランドの運営に乗り出す。主に独立系ホテルから運営を受託し、2017年までに合わせて50ホテル以上を開業する。国内最大手のプリンスホテル（東京・豊島）と並ぶ規模になる見通し。世界で約800万人とされる会員組織を生かして、外国人ビジネス客や中国など新興国から訪れる富裕層を取り込んでいく。

　ヒルトンは現在、国内では「ヒルトン」と超高級タイプの「コンラッド」の2ブランドを展開。1日に開業したヒルトンニセコビレッジ（北海道ニセコ町）を含め、9ホテルを運営する。世界大手では英インターコンチネンタルホテルズグループが国内42カ所で展開し、先行している。

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住友商事と積水化学、ロシアで水道管合弁

　住友商事と積水化学工業は12月、ロシアで水道管の生産に乗り出す。当初は世界の自動車大手の進出が相次ぎ経済発展が続くサンクトペテルブルク市で販売する。将来はモスクワなど主要都市に供給地域を広げ、ロシア全体で2割のシェア獲得を目指す。ロシアではコマツも建設機械を現地生産する計画で、拡大するインフラ整備市場を狙う日本企業の動きが活発になってきた。

　7月中に設立する合弁会社には住友商事が40％、積水化学と現地の下水道工事会社ＶＫＳ社がそれぞれ30％ずつ出資する。サンクトペテルブルク市近郊にある工場の建屋を賃借し生産設備を導入する。当初の生産能力は年3000トンで、2011年までに同1万5000トンに拡大する。総投資額は6億円。生産技術は積水化学が提供する。

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使用済み核燃料、再処理工場また停止　日本原燃発表

　日本原燃は3日、青森県六ケ所村にある使用済み核燃料の再処理工場で、高レベル放射性廃液からガラス固化体を製造する工程で不具合があり、試運転を停止したと発表した。同じ工程のトラブルで昨年12月に試運転を中断、対策を国に申請して今月2日に再開したばかりだった。目標だった7月中の再処理工場完成は非常に難しくなってきた。

　不具合があったのは、廃液とガラスを溶融炉で溶かして混ぜ、ステンレス容器に流し込んで固める工程。3時間の運転で400キログラムを容器に流し込む計画だったが、数百グラムしか入らなかったため、3日未明に作業を中断した。同工程は過去の不具合を踏まえて作業手順を見直したばかり。原因はわかっていない。

　日本原燃は3日正午、国や自治体に不具合発生を報告。外部への放射能漏れなどの影響はないとしている。今後原因を究明し、10日以内に国に再度報告する。

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ウナギ偽装　詰め替え報酬で１億円　魚秀、高松の卸元専務に

　中国産ウナギかば焼きの産地偽装事件で、水産卸売会社の魚秀（大阪市）側が、箱の詰め替えなどを請け負った高松市の水産卸売会社元専務に約1億円を渡していたことが3日、関係者の話で分かった。偽装作業の報酬とみられる。兵庫、徳島両県警の合同捜査本部は押収した資料を分析し、不透明なカネの流れと大掛かりな偽装の実態解明を目指す。

　関係者によると、中国産ウナギの在庫を大量に抱えていた魚秀の中谷彰宏社長は1月ごろ、国産に偽装して販売することを計画。魚秀取締役を兼務する高知県南国市の水産加工会社役員を介し、元専務に偽装作業を依頼した。

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里帰りウナギ、「国産」表示禁止　輸入組合

　全国約30のウナギ輸入業者が加盟する日本鰻輸入組合（東京・中央）は3日、海外から逆輸入した里帰りウナギについて、「国産」と表示するのをやめ、輸入品として販売すると農林水産省に報告した。

　日本農林規格（ＪＡＳ）法に基づく生鮮品品質表示基準によると、国内からウナギの幼魚を海外に輸出し、成長してから逆輸入した場合、国内で育った期間の方が長ければ、国産と表示できる。同組合はこれに基づき一部の輸入品を国産として販売していたが、「消費者の信頼を回復するため、不明瞭（めいりょう）な産地表示はすべきでないと判断した」という。

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エビ投資詐欺　使途不明50億円　警視庁、資金の流れ解明急ぐ

　ワールドオーシャンファーム（破産手続き中）のエビ養殖投資詐欺事件で、同社が集めた資金約849億円のうち、約50億円が使途不明になっていることが3日、警視庁生活経済課の調べで分かった。同課は資金の流れの解明を急いでいる。

　調べによると、同社会長の黒岩勇容疑者（59）らは2005―07年、「フィリピンでのエビ養殖事業に投資すれば1年で2倍になる」とうそをつき、全国の約3万5000人から計約849億円を集めた疑いが持たれている。

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エビ養殖詐欺：黒岩容疑者、逃亡先の東南アジアで考案

　フィリピンでのエビ養殖事業に絡む出資金詐取事件で、「ワールドオーシャンファーム」会長の黒岩勇容疑者（５９）は、マルチ商法の健康食品販売事業が破綻（はたん）し、逃亡していたフィリピンで養殖事業名目の出資金集めを考案したことが、黒岩容疑者の過去の事件の公判資料などから分かった。警視庁などの合同捜査本部は、黒岩容疑者が日本向けのエビ養殖が盛んな東南アジア滞在中に、新たな不正に乗り出したとみている。

　黒岩容疑者の旅券法違反事件の公判資料などによると、黒岩容疑者は９９年１０月に健康食品販売会社「アイエーエスプロデュース」を設立。商品購入代金を支払った会員らにブラジル産の茶葉などを販売させるマルチ商法で約２万人から約３００億円を集めた。

　しかし、０２年１月には会員への支払いが停止し破綻。分配金の支払いなどを巡り、会員らから刑事告訴されるなどトラブルが続発。債権取り立てや捜査が身辺に及ぶのを恐れ同年４月、フィリピンに逃亡、ベトナムなどにも滞在した。

　同年８月ごろ、日本向けの冷凍エビの輸出会社「セントラルフローズンフーズコーポレーション」をフィリピンに設立。０４年ごろ、セ社でエビを養殖して日本に輸出する事業を名目に、出資金を集めることを思いついた。

　同８月ごろ帰国し、休眠会社を利用する形でワールドオーシャンファーム社を設立した。こうした経緯は、０７年５月に再度海外逃亡した際、他人名義の旅券を使用したとして起訴された事件の公判資料に記載されている。

　　×　　　×

　合同捜査本部は４日、新たにワールドオーシャンファーム総務部長、渡辺唯士容疑者（６０）＝東京都板橋区三園１＝を詐欺と組織犯罪処罰法違反（組織的詐欺）容疑で逮捕。逮捕者は計１８人になった。また、黒岩容疑者が潜伏していた東京・錦糸町のホテルから約５０００万円が押収されていたことも判明。黒岩容疑者ら１７人は、同容疑などで４日送検された。

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全日空、超大型エアバス機購入へ

　全日本空輸は欧エアバス社の超大型旅客機「Ａ３８０」を購入する方向で最終調整に入った。当初5機を導入し、2012年以降、欧米路線に就航させる。燃料高が経営を圧迫するなか、1回で500―800人超の乗客を運べるＡ３８０を採用して燃料使用量を減らし運航効率を高める。これまで日本の航空会社は大型機を米ボーイングから調達しており、エアバス機の導入は今回が初めて。世界で激しい受注競争を繰り広げる航空機2社の勢力図にも影響を与えそうだ。

　全日空は3日、超大型機の購入を決める「新機種選定委員会」を社内に設置した。詳細な検討をへて、9月をメドに「Ａ３８０」導入を最終決定する。5機の購入金額は1000億円程度とみられる。

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全日空、エアバス超大型機購入「選定作業を本格化」

　全日本空輸は4日、欧エアバスの超大型旅客機Ａ３８０の購入について「3日に超大型旅客機購入に向けた新機種選定委員会を立ち上げた。Ａ３８０を軸に選定作業を本格化する」とコメントした。米ボーイングなど他社製の大型機と性能や価格などを詳細に比較しながら、エアバスと交渉を進め、今秋をメドに最終決定する予定だ。

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BHP signs iron ore deal in line with Rio
Reuters
By Jim Regan and Nao Nakanishi Reuters - 1 hour 35 minutes ago

SYDNEY/HONG KONG (Reuters) - BHP Billiton has matched Rio Tinto's near 100 percent price hike for 2008-2009 iron ore deliveries, Chinese industry officials said on Friday, ending protracted talks over contracts worth billions of dollars.

The officials confirmed an unsourced report in the Australian Financial Review that BHP Billiton, the last hold-out in bitter-fought talks, had secured terms in line with takeover target Rio's 96.5 percent increase for iron ore lumps and a 79.88 increase for fines, won from Baosteel two weeks ago.

"For the industry from mills to iron ore producers, everyone wins," Judy Zhu, commodity analyst at Standard Chartered Bank, said.

"Iron ore producers will make more money and the steel makers, although they are paying more for their raw materials, will be able to pass these higher costs to their customers. It will be downstream users who will have to bear higher prices."

BHP spokeswoman Samantha Evans in an emailed statement called the report "pre-emptive."

Li Xinchuang, vice president of the China Metallurgical Industry Planning & Research Institute, told Reuters the report was correct but declined further comment. A second source who declined to be named also confirmed the deal.

BHP had initially held out for an even greater rise, arguing that soaring freight rates made Australian ore much cheaper relative to longer-distance Brazilian grades. Brazil's Vale agreed to a 65-71 percent rise in February.

BHP is fighting to win a $170 billion (86 billion pound) unsolicited bid to buy Rio, in part to combine both companies' iron ore mines in Australia.

PRICE BENCHMARK

The benchmark price each year is closely watched because it also determines what smaller iron ore miners and steel mills worldwide can expect to pay during the 12 month shipping year ending every March 31.

"We are not yet aware of any BHP settlement," a spokesman for Fortescue Metals Group Ltd , a smaller Australian iron ore miner, said.

As talks between BHP and its customers dragged on beyond an informal June 30 deadline, Fortescue, which is in its first year of operation near BHP and Rio mines in west Australia, has been forced to rely solely on Rio for price guidance.

The rare divergence in Australian and Brazilian deals comes at a time when BHP is also pushing to price more of its iron ore on the basis of spot market prices, irking customers such as Baosteel of China, Nippon Steel Corp and South Korea's POSCO , which are already fuming over its plans to buy Rio and create a super mining house with even more sway over resource supplies.

"Nobody can tell right now exactly how things will be next year. This year it's a new story for everything," said Li.

Rio Tinto said on Tuesday that all of its Asian customers had now agreed to an up to 96.5 percent price hike for ore delivered between April 1, 2008 and March 31, 2009.

News of the agreement comes just a day after BHP won partial U.S. antitrust clearance for its Rio bid and the same day that the European Commission is expected to announce an in-depth investigation that could last beyond year end.

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Russian oil production to remain level in coming years: Gazprom
AFP
AFP - Thursday, July 3 03:40 pm

BAKU (AFP) - The chief executive of Russian energy giant Gazprom, Alexei Miller, said on Thursday that the country's oil production would remain unchanged in the next few years.

"We expect to produce the same volume of oil this year as we did last year," Miller, told journalists on the sidelines of a visit to energy-rich Azerbaijan by President Dmitry Medvedev, referring to Russian oil production as a whole.

"In the next few years, we expect that the volume will remain at the same level," he said.

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Navy Orders Biggest Ever Warships
SkyNews
By Sky News SkyNews - Thursday, July 3 01:53 pm

The Royal Navy's biggest ever warships will finally begin to take shape on Thursday with the long-awaited signing of contracts to build two new super carriers.
(Advertisement)

The ceremony, aboard HMS Ark Royal in Portsmouth, ends months of uncertainty over whether hard-pressed defence budgets could stretch to the costliest vessels ever commissioned.

The new ships, to be named Queen Elizabeth and Prince of Wales, will cost around £4bn to build and should both be in service in ten years' time.

At 65,000 tonnes they'll be more than three times the size of Britain's current three carriers, and dwarfed only by the US Navy's 100,000 tonne Nimitz class.

Instead of the traditional construction of laying the keel and building upwards, the new ships will be prefabricated in sections at four dockyards.

The project is expected to provide 10,000 jobs on Clydeside, Barrow and Portsmouth.

Flight decks of almost three hundred metres will give room for aircraft to take off whilst others are landing and the design of the superstructure in two separate islands will provide more aircraft space.

The ships should be able to carry 40-50 aircraft, compared with the 14 capacity of the present flat tops.

However, because the US-designed Harrier replacement may not be ready in time, it's expected that initially, air power will be provided by Britain's aging fleet of jump-jets.

The signing ceremony, by Baroness Taylor, Minister for Military Procurement, will finally end a long argument within the services over how money is shared.

Some in the Army have argued that Britain should rely on American for seagoing air support, and spend money on better armoured vehicles.

However the Navy seems to have won the battle.

Although, as the bills begin to tot up, the carriers may come at the price of fewer new submarines and escorts as the fleet gets ever smaller.

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Sharia law 'could have UK role'

Principles of sharia law could play a role in some parts of the legal system, the Lord Chief Justice has said.

But there is no possibility of sharia courts sitting in the UK, Lord Phillips of Worth Matravers added.

Lord Phillips, the most senior judge in England and Wales, said there was no reason sharia law's principles could not be used in mediation.

The Archbishop of Canterbury prompted controversy when he said use of certain aspects of the law "seems unavoidable".

Sharia is a set of principles which govern the way many Muslims believe one should live one's life.

In a speech at the East London Muslim Centre in Whitechapel, Lord Phillips said that sharia suffered from "widespread misunderstanding".

Alternative resolution

Lord Phillips said: "There is no reason why sharia principles, or any other religious code, should not be the basis for mediation or other forms of alternative dispute resolution.

"It must be recognised, however, that any sanctions for a failure to comply with the agreed terms of mediation would be drawn from the laws of England and Wales."

But severe physical punishments such as flogging, stoning and the cutting off of hands would not be acceptable, he said.

He added: "There can be no question of such courts sitting in this country, or such sanctions being applied here.

"So far as the law is concerned, those who live in this country are governed by English and Welsh law and subject to the jurisdiction of the English and Welsh courts."

Williams 'misunderstood'

The Archbishop of Canterbury, Dr Rowan Williams, had been misunderstood when it was reported in February that he said British Muslims could be governed by sharia law, the judge said.

Dr Williams suggested that sharia could play a role in "aspects of marital law, the regulation of financial transactions and authorised structures of mediation and conflict resolution".

Lord Phillips said: "It was not very radical to advocate embracing sharia law in the context of family disputes, for example, and our system already goes a long way towards accommodating the archbishop's suggestion.

"It is possible in this country for those who are entering into a contractual agreement to agree that the agreement shall be governed by a law other than English law."

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Church's ruling Synod set to meet
A bishop's robes and crucifix

The Church of England's ruling Synod is bracing itself for more disagreements at its meeting in York.

Some 1,300 clergy have threatened to leave the Church unless guaranteed the oversight of male bishops alone.

And a traditionalist member has accused officials of suppressing his call for an explicit policy of converting people of other faiths, including Muslims.

Paul Eddy's motion was backed by about a quarter of the Synod, but officials say the agenda was too crowded.

The Fellowship of Confessing Anglicans - the international alliance of traditionalist Anglicans formed in Jerusalem last week - has made the duty to evangelise other faiths one of its key policies.

Right to opt out

Anger about the way Mr Eddy's motion has been handled could prompt many Synod members to sign up to the Fellowship's campaign against liberal trends in the Church.

Another key debate, about the creation of women bishops, also threatens to divide the Church.

Traditionalists want the legal right to opt out of the supervision of a woman bishop, and into the care of a male alternative.

The Synod has already agreed in principle to ordain women as bishops.

Awkward decision

BBC religious affairs correspondent Robert Pigott says it faces an awkward decision about how to treat traditionalists whose religious consciences will not allow them to serve under a women bishop.

He says Anglo-Catholics Anglicans argue that Jesus only chose men to be his immediate 12 apostles, the men who were given leadership of the early Church.

They point out that an unbroken chain of male bishops has led the Church since then.

Our correspondent says they believe that a man ordained by a woman might not be properly ordained, and might not in reality be a priest.

Such a suggestion is strongly rejected by women priests and many others in the Church.

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私大連盟、３３００万円不適切支出…政治パーティーや飲食

　文部科学省所管の社団法人「日本私立大学連盟」（会長・安西祐一郎慶応義塾長）が昨年度１年間に、政治家のパーティー券の購入費約１０００万円を含め、高級料亭での「役員懇談会」やスナックでの「打ち合わせ」の費用などに総額約３３００万円を使っていたことが同省の調査でわかった。

　連盟の事業活動費の１割弱にあたる支出で、同省では「私立大の振興を図るという公益法人の目的を逸脱しており、不適切」と判断、事務局組織の見直しなど１１項目の改善事項を示して行政指導を行った。

　同連盟はこれを受け、４日午前から緊急常務理事会を開き、これらの支出を決裁していた赤坂雄一・事務局長（５６）を解任したほか、財務担当理事を交代させた。

　同省が不適切と判断した支出には、赤坂事務局長が連盟の貸付制度を利用し、年利１％で借りた約２３０万円が含まれていた。連盟の規定の貸付利率は年利２・５％で、変更には理事会の承認が必要だったが、赤坂事務局長は「財務担当理事に口頭で了解をもらった」と説明しているという。

　このほか同連盟は昨年度、計２０６の政治資金集めパーティーで計１０３３万円分のパーティー券を購入していた。１件あたりの支出は２万～２０万円だったが、同省は「政治家からの情報収集のためだとしてもやりすぎで公益目的とはいえない」と判断した。

　また赤坂事務局長や役員など７人が都内の高級料亭で懇談会を開いた費用として６８万８０００円、事務局職員約２０人による高級焼き肉店での忘年会費として８９万７０００円を使うなど高額な飲食も目立った。

　ほかにもスナックでの「打ち合わせ」など同省が「連盟の事業とは見なせない」などと判断した分も合わせると、不適切な飲食への支出は１０７件に上った。

　同省は今年３月、同連盟から加盟大学の会費値上げを打診されたことをきっかけに、「値上げの目的が不明確」として連盟に調査に入り、赤坂事務局長１人の決裁だけで、飲食費を支払っているなどのずさんな会計処理を改善するよう指導した。

　しかし赤坂事務局長が「会計処理は適正」との主張を変えなかったため、同省は先月９、１０の両日に再調査を実施。財務諸表や支出伝票などを調べた結果、不適切な支出が多数あることが判明した。

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公益法人への支出、首相が３割削減指示

　福田首相は４日午前の閣僚懇談会で、公益法人への支出について、現在より３割削減するよう指示した。

　また、町村官房長官は４日の記者会見で、行政の無駄を点検するための有識者会議を月内をメドに設置する考えを明らかにした。

　政府は４日、公益法人に対する集中点検の結果を発表した。８２法人で国や独立行政法人から発注する事務事業を削減するほか、４２法人で国などの発注事業を随意契約から一般競争入札に全面的に切り替え、４１法人では競争入札の適用を拡大する。事務事業の削減などによる国の財政負担の削減額は明示しなかった。

　集中点検は、福田首相の指示を受け、所管省庁ごとに支出の必要性などを検証し、内閣官房がまとめた。

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公益法人改革、82法人の事業見直し　中間報告発表

　政府は4日、行政と密接な関係にある350の公益法人見直しの中間報告を発表した。82法人で国から発注している事業の委託廃止や縮小を検討するほか、 220法人で一般競争入札の拡大など契約方式を見直し、民間企業との競争を促す。解散を明記したのは貿易保険機構と厚生労働問題研究会の2法人にとどまった。

　福田康夫首相は閣議後の閣僚懇談会で「公益法人への支出を3割削減したい」と述べ、来年度予算編成に向けた具体化を指示した。内閣官房によると、 2006年度予算では国や独立行政法人から1974の公益法人に約9600億円を支出している。首相指示が実現すれば3000億円程度の歳出を減らせる計算だ。

　首相は公益法人見直しを含む「無駄ゼロ」を徹底するため、有識者でつくる第三者機関の7月中の設置も正式に指示した。

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相撲協会に外部理事求める　文科省　巨額内部留保の改善も
2008.7.4 17:14

　文部科学省は４日、日本相撲協会に対し、時津風部屋で起きた力士死亡事件を踏まえ、外部の人材を役員に迎え、協会運営の透明性・公正性を高めるよう指導したことを明らかにした。

　相撲協会の役員はすべて力士出身者で占められているが、公益法人の指導監督に関する指針では、１団体出身者の役員比率は３割以内が望ましいとされており、外部から理事を迎えるよう要望したという。

　また、協会の繰り越し金について同省は、平成１８年度で６４億円（総事業費の５８％）、１９年度で７７億円（同６７％）と、望ましい水準とされる総事業費の３０％を超過しており、力士の引退後の生活支援などに活用して速やかな改善を求めたいとしている。

　松浪健四郎副大臣は、近く相撲協会が提出する予定の改善報告書の対策が実行されるよう指導したいとしている。

　文科省は昨年９月、北の湖理事長を呼んで、事件の真相究明や力士指導の検討委員会に外部委員を選ぶよう求めるなど相撲協会に対し内部改革の努力を進めるよう指導していた。

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夏休みの海外旅行、燃料高響き７％減　ＪＴＢ見通し

　ＪＴＢが4日発表した夏休み期間（7月15日―8月31日）の旅行動向調査によると、海外旅行者数は前年同期比7％減の225万人にとどまる見通しだ。国内旅行も同0.9％減の7350万人と4年ぶりに減少。原油高に伴う燃油特別付加運賃（燃油サーチャージ）が昨年の2倍に膨らみ、食品や日用品の値上がりも旅行需要に水を差していると分析している。

　海外旅行の方面別では、四川大地震やチベット暴動の影響で中国が36.6％減と予測。アジア全体では11.9％減の1147万人となる。旅行者が前年を上回るのは韓国とグアム・サイパン、米国本土だけだ。