Single auto parts maker shakes S Korea's auto industry

A single auto engine parts maker shook South Korea's auto industry. One of the country's auto parts makers went on strike on May 18, resulting in suspended production of some models in top automaker Hyundai Motor and its affiliate Kia Motors.

Workers at Yoosung Enterprise started a walkout on Wednesday last week after the management and the labor union failed to agree on working conditions and wages. Yoosung provides key engine parts such as piston rings, cylinder liners and camshafts for Hyundai, Kia, GM Korea, Renault Samsung Motors and Ssangyong Motor.

Following 11 rounds of failed negotiation, unionized workers at Yoosung staged a sit-in and the management shut down two of its five factories in the nation in response to the labor dispute. Angry union members occupied production lines and blocked other workers from entering the plants.

Just one week into the strike, South Korea's automakers fell into malfunction. Industry leader Hyundai and its unit Kia were hit hardest among the five local automakers.

Kia was forced to halt output of its Carnival passenger minivan starting May 20 at its Sohari plant as the strike at Yoosung disrupted diesel engine output. Hyundai stopped production of some sport utility vehicle (SUV) models such as Tucson ix and Santa Fe from May 22

The labor strike at one of its engine parts supplier crippled production of its commercial pickup truck Porter and passenger minivan Starex on May 24 due to exhausted engine inventory. Hyundai expected the prolonged strike to disrupt all of its passenger and commercial vehicles from May 25.

The malfunction in Hyundai and Kia stemmed from a single engine component, or piston ring. Yoosung has supplied about 70 percent of the piston rings used in popular models made by the two automakers.

Even though the three remaining local automakers were not affected immediately by the strike, they would have fallen into production disruptions if the labor dispute is protracted.

Yoosung has provided around 50 percent of piston rings used in SUV models produced by GM Korea such as Orlando and Captiva, according to the report by Mirae Asset Securities. GM Korea might have been blocked from producing those models should the strike run through until May 29.

Renault Samsung has entirely relied on Yoosung's camshafts used in its SM5 2.0, the production of which would have been stopped by the prolonged strike from May 26, Kim Yun-ki, an analyst at Mirae Asset Securities in Seoul, said in a report released on Monday.

Fortunately, the strike was not prolonged further. South Korean police on Tuesday raided the Yoonsung production lines occupied by striking workers and dispersed them, ending the weeklong walkout.

Shares in Hyundai and Kia plunged on Monday on worries about the prolonged strike. Hyundai plummeted 5.39 percent to close at 228,000 won two days ago, with Kia dropping 4.69 percent to 70,000 won.

The two automakers, however, rebounded on Wednesday as the police crackdown wiped off concerns over disrupted output. Hyundai rose 0.43 percent to 231,500 won, and Kia ended unchanged at 70, 400 won although the benchmark KOSPI dropped 1.26 percent.

Kim at Mirae Asset noted Hyundai and Kia will rapidly normalize its assembly lines because the cycle time of producing piston rings is relatively short. Market watchers reportedly expected the two auto firms to normally operate its production lines from Thursday.

Despite the rapid normalization, the South Korean auto industry exposed its fatally weak point, or unified parts supply channel.

Hyundai and Kia have bought around 70 percent of their core engine part, or piston ring, from Yoosung, and GM Korea has purchased some 50 percent. Renault Samsung's camshafts used in one model all came from Yoosung.

Hyundai should have lost 48,000 vehicles worth 827 billion won (753 million U.S. dollars) should the strike continue till the end of this month, Hyundai said. The prolonged strike should have caused a 1.2 trillion won of damages to around 5,000 parts suppliers of Hyundai and Kia.

It was totally due to a single engine part worth 1,000 to 2,000 won each. A car is made up of more than 2,000 components, so disrupted production in any single part will inevitably lead to halt of operations in automakers and their parts makers.

However, it was a serious problem local automakers were not able to find alternative parts supply channels in contrast to foreign firms who have a global network. Local auto manufacturers may need to diversify its supply system in preparations for another potential output disruption.

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China- Myanmar relations head for new high: ambassador

The upcoming state visit of Myanmar President U Thein Sein to China would certainly push the two countries' strategic and mutually beneficial cooperation towards a new high, Chinese Ambassador to Myanmar Li Junhua told Xinhua in an exclusive interview on the eve of the president's visit.

At the invitation his Chinese counterpart Hu Jintao, President U Thein Sein is to pay the first ever state visit to China from Thursday to Saturday in the capacity of a Myanmar top leader after the new government took office.

Leading over 10 government ministers, U Thein Sein will pay the state visit to Beijing and there will be talks and meetings with Chinese leaders, Ambassador Li said.

Li disclosed that during the visit, a number of bilateral cooperation accords or framework agreements between government departments and enterprises of the two sides will be signed, signaling the playing of further role of potential of the two countries' economic and trade cooperation, through which peoples of the two countries could greatly benefit from the mutually beneficial cooperation.

Li also disclosed that during the visit, the two countries will issue a joint statement that will be a new breakthrough, a new push in the development of the two countries' relations and future cooperation.

Commenting on the coming into being of the Myanmar new government, Li said for over a month after the new government assumed office, politically, the parliamentary sessions ran smooth with power transfer as well. Government at different levels are also operating orderly.

Citing President U Thein Sein's first speech delivered when he was sworn in to office, Li said U Thein Sein's remarks produced a strong signal to the Myanmar people of all walks of life and the international community, saying that the new government would make greater efforts in developing economy, speed up the rate of opening door to the outside world, improve the living standard of the people positively and strengthen the mixing up of nationalities based on the foundation laid by the previous government.

He pointed out that "We have seen a new phenomenon economically, that are inducing more foreign investment, expanding foreign trade and strengthening private enterprises."

Touching on some special characteristics of the Myanmar new government's foreign relations, Li said the new government becomes more initiative, more self-confident and more active diplomatically. He cited the recent attendance at the Jakarta ASEAN Summit of and state visit to Indonesia by Myanmar president U Thein Sein who raised at the regional summit Myanmar's undertaking of alternate chairmanship in 2014.

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Nan'ao One: Underwater archaeology lacks experts

The wreck of the Nan'ao 0ne is one of 200 underwater heritage sites in China. Despite its relatively late start, the field of underwater archaeology in China is making significant progress. But as Zhang Nini finds out, even with financial backing from the government, a lack of professional expertise is hampering advances.

Into the murky depths of the sea. China's archaeological teams are diving deep in search for past civilizations.

A group of twenty archaeologists are taking turns to plunge into the South China Sea, where they uncover troves of cultural artifacts from Nan'ao One, a Ming dynasty sunken vessel.

They are each equipped with a face mask which allows real time communication with the headquarters, underwater flashlights with a backup bulb; a knife to cut through fishnet trappings, a compass watch, and an underwater digital camera which relays back pictures of the mysterious sea. The high-profile salvage operation is provided with top notch technology, but according to team leader Cui Yong, the lack of talent has hampered its development.

Cui Yong, leader of Nan'ao One Archaeological Team, said, "The biggest problem is that we do not have enough underwater archaeologists. We are divided between several salvage projects. And each requires considerable time, money and personnel."

Archaeologists are making meticulous efforts to extract items from layers of silt. More than two thousand pieces have been retrieved this year. The porcelain wares were made in private kilns, and were on their way to Southeast Asia. The patterns of traditional wisdom embody an auspicious meaning.

Chen Huasha, a researcher from the Beijing Palace Museum, says underwater archaeology is not treasure hunting. It's a much more precise job aiming at reproducing a lost history.

Chen Huasha, National Committee of Cultural Relics, said, "Treasure hunters rob the items and are regardless of the damage they do to the ship. They are after a profit from these items. But archaeologists try their best to preserve every piece of history in the ship. They do their job little by little. So it's time consuming and costly."

According to preliminary surveys, China has more than 200 marine heritage sites, 70 of which are shipwrecks of great archaeological value. It is a rich cultural heritage lying in the deep, like exhibits in a giant underwater museum. And it's in dire need of thorough protection.

Illegal salvage is rampant in coastal provinces. The pillaging of underwater sites has become so common that sometimes archaeologists discover a site long after robbers have ransacked it.

Apart from personnel shortages, Professor Wu Chunming believes the implementation of existing laws regarding underwater heritage protection should be strengthened.

Prof. Wu Chunming, Dept. of History of Xiamen University, said, "China has a regulation over underwater heritage protection. But treasure hunting and the illegal sale of cultural relics is still a serious problem. For a systematic approach to underwater heritage protection, China has a long way to go."

But Wu's also confident. With sufficient material and monetary support from the government, China has made considerable headway in underwater archaeology in recent years. And he believes that the salvage of Nan'ao One will serve as an example for future projects underseas.

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NATO airstrike kills 19, injures 130 in Tripoli: Libyan gov't spokesman

A NATO airstrike killed 19 people and injured over 130 others in the libyan capital Tripoli overnight Tuesday, a government spokesman said on Wednesday.

Moussa Ibrahim told Xinhua that the drastic air raid, the heaviest against the capital in more than two months, lasted over one hour, and also caused huge property damage.

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Spanish cyclist found dead in freak accident

A cyclist from the Spanish Movistar team, Xavier Tondo, died in a freak accident on Monday as he set out to train for the upcoming Tour de France

Tondo who won a stage on the Paris-Nice race and finished sixth in the Tour of Spain had also won the 2011 Tour of Castilla and Leon. The 32-year-old was found by police crushed between a garage door and his car.

He was planning to join his colleague Alejandro Valverde in the Sierra Nevada for some long distance training. He made headlines earlier this year when he blew the whistle on a doping ring. He informed authorities after receiving emails in which he was offered banned substances.

His body was taken to the Independent Forensic Institute in Granada where his family members and Movistar team officials later gathered.

Movistar officials said they would not withdraw their team from the Giro d'Italia,and they thought the best way to honour Xavi was to keep on the cycling.

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Australia's Cougar Energy to open Beijing office for China UCG Projects

Australia's Cougar Energy Ltd will open an office in Beijing to grow its underground coal gasification (UCG) projects in China and across the Asian region, the company announced on Wednesday.

Cougar says the Beijing office will be headed by Kevin Garner, who has been appointed as General Manager Asia from June 1, 2011.

Garner, a chartered engineer and Chinese resident, will be responsible for technical and operational aspects of executing the UCG projects.

Cougar on Wednesday also announced the appointment of Alyssa Liao as Commercial Adviser to the company.

Liao is a former private banker with UBS and HSBC and will be based in Shanghai, Cougar says.

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Peru, China sign 3.07-mln-dollar cooperation agreement

Peru and China on Tuesday signed an agreement on bilateral economic and technical cooperation, under which China would grant assistance worth 20 million yuan (3.07 million U.S. dollars) to the South American country.

The money will be used in Peru's education, culture and health sectors.

Chinese Ambassador to Peru Zhao Wuyi and Carlos Pando, executive director of the Peruvian Agency for International Cooperation, inked the deal.

"The signing of this agreement reaffirms the friendship and mutual understanding between both countries and shows China's firm support to Peru's social and economic development," Zhao said.

"Trade isn't the full content of bilateral cooperation. There are many potential areas for both sides to increase cooperation, including sectors such as anti-poverty fight and infrastructure construction," he said.

Pando also hailed the deal, which came as the two countries are celebrating the 40th anniversary of the establishment of their diplomatic relations this year. Peru and China forged diplomatic ties on Nov. 2, 1971.

The continued strengthening of bilateral relations has created conditions for increased trade, investment and cooperation in different areas and activities, he said.

The agreement will boost projects of education and health infrastructure in the near future, he added.

Pando also said the China-Peru cooperation increased over the 2006-2010 period, during which Peru received aid worth 120 million yuan (18.5 million dollars) from China.

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EU representative hails Honduras deal

EU's permanent representative in Central America, Mendel Goldstein, on Tuesday hailed the agreement to end Honduras' political crisis.

Honduran President Porfirio Lobo and exiled leader Manuel Zelaya signed an agreement over the weekend to allow Zelaya's return, ending a two-year-old political crisis.

Goldstein said the deal was important for the entire Latin American region. It not only brings the nation one step closer to return as a member of the Organization of American States (OAS), but constitutes an important step toward political reconciliation, he said.

Honduras was suspended from the OAS after Zelaya was removed from power in June 2009. With the new agreement, the Central American country is expected to be allowed back to the OAS at next general meetings scheduled for June 5-6 in El Salvador.

Former President Zelaya was ousted and deported to Costa Rica on charges of treason and violations of the constitution. Zelaya, who has lived in self-imposed exile in the Dominican Republic since January 2010, is scheduled to return to Honduras on Saturday.

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Greek opposition: No new austerity

 The main Greek opposition leader is refusing to back additional austerity measures, designed to tackle the country's debt crisis. The New Democracy Party says the changes would only deepen the current recession, despite the European Union's insistence on multi-faceted support.

Top EU finance officials are arguing that Greece needs all of its political groups to back the latest debt-cutting plans, in order to ensure smooth implementation.

They also stress the importance of the Greek opposition's support for receiving the next installment of the bailout due in late June.

Greek Prime Minister George Papandreou has met with the heads of competing factions to seek consensus, a day after the country announced extra measures to shrink its budget deficit.

But he's being rebuffed by the main opposition New Democracy Party.The party's leader argues the austerity measures will only bring further recession.

Antonis Samaras, Leader of Greek New Democracy Party, said, "If there is no reduction of taxes, together with a reduction of state waste and bold privatizations there will not be a jumpstart to the economy. The society wishes for consensus on whatever is beneficial, but not to anything that will harm the country."

The only head from one of the nation's four main opposition groups to show consensus was the Right Wing Party's leader.

Officials in Athens unveiled a series of privatizations on Monday, part of a goal to raise 50 billion euros by 2015, to pay down a mountain of debt. The scheme starts with divestments in several state firms.

Inspectors are currently reviewing the success and pace of the reforms.

The country's Finance Minister has warned that Greece faces default without the next installment of the bailout.

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Arrest warrant issued for former Colombian secret service director

Bogota's criminal division of the Superior Court Wednesday ordered the arrest of a former secret service director who has been accused of participating in illegal spying during the administration of former President Alvaro Uribe.

Maria del Pilar Hurtado, who was granted territorial asylum in Panama last November, served as director of the Department of Administrative Security (DAS). She has been accused of ordering the illegal wiretapping and surveillance of opposition politicians, High Court judges and journalists.

"The long list of facts for the prosecution, although in some areas undermined by the activities of the defenders, is still allowed to make reasonable that there can be criminal offenses for which a trial is necessary," Luis Fernando Ramirez, the judge at the criminal division of the Superior Court, said.

Ramirez took into account the testimonies of former DAS officials Fernando Tabares and Jorge Lagos, who had admitted to espionage and testified against Hurtado.

The two former officials are being prosecuted for illegal spying, which was condemned by the United Nations.

However, during a court hearing in Bogota, Hurtado's lawyer Jaime Camacho denied that his client was involved in the illegal spying conducted by the DAS during the Uribe administration.

For her part, Colombian Foreign Minister Maria Angela Holguin said she will seek an extradition warrant for Hurtado as soon as the request is given. She added that this would not be a cause of conflict between Colombia and Panama.

The prosecuting body charged Hurtado with aggravated conspiracy, abuse of public office, embezzlement and misappropriation, falsification of public documents and unlawful violation of communications.

The scandal, known locally as the "Chuzadas", was made public by the weekly "Revista Semana" last year, whose director had been one of the spying victims.

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AIDS-plagued province to cooperate with UK on epidemic prevention

 Authorities in central China's Henan Province said it would collaborate with the UK HPA (Health Protection Agency) and Birmingham Heartlands Hospital in a joint battle against AIDS.

The two sides have agreed to advance research on AIDS control and prevention by diagnosing and treating AIDS patients in Henan, among the worst hit of Chinese provinces by the epidemic, said Liang Rui, an official at the Health Department of Henan.

"Birmingham Heartlands Hospital has experience in treating AIDS patients with drug-resistance, and they are interested in our remedy that uses traditional Chinese medicines," Liang said.

Both sides will send experts and doctors on exchange tours. Doctors from Birmingham Heartlands Hospital will provide consulting services through the Internet, Liang said.

Liang said that as sexual transmission had overtaken blood sales and drug abuse as the main contamination channels of AIDS in Henan, the two sides would also share insight on AIDS prevention and control in high-risk populations.

The two sides will also cooperate in education, research for a cure, and the establishment of an epidemic monitoring system.

According to the Ministry of Health, China had more than 370,000 people infected with HIV by the end of October 2010, while Henan had 48,744 HIV carriers -- more than 10 percent of the total figure.

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Cargo handling at S Korea's seaports rises 7.7% in April

The volume of cargo handled at seaports in South Korea rose 7.7 percent in April compared with a year ago, government data showed Wednesday.

The country's seaports handled 107.6 million tons of cargo last month, up 7.7 percent from the same period a year ago, according to the data by the Ministry of Land, Transport and Maritime Affairs.

The growth was mainly driven by increased shipments of oil- related products and bituminous coal in and out of the country's seaports.

Cargo shipments of oil products surged 15.2 percent in April compared with a year ago, while bituminous coal posted a 9.4 percent increase over the same period, according to the data.

The volume of container cargo handled at local seaports also climbed 11.2 percent last month to 1.83 million TEUs, or 20-foot equivalent units.

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Indian Navy to induct two more stealth frigates into fleet

The Indian Navy is soon to induct two more deadly stealth frigates to bolster its growing "blue water" warfare capabilities, local media reported Wednesday.

According to sources, the 6,200-ton indigenous stealth frigate INS Satpura is likely to be commissioned in June-July, while the Russian-built 4,900-ton INS Teg should finally be ready for induction by September-October, The Times of India newspaper reported.

INS Satpura and INS Teg will certainly boost combat capabilities, packed as they are with sensors, weapons and missile systems, coupled with their stealthy nature due to "vastly reduced " radar, infra-red, noise, frequency and magnetic "signatures" to beat enemy detection systems, the report said.

"With the security situation being fluid, we need to maintain the organizational ability to deploy warships, submarines and aircraft at immediate notice," Indian Navy chief Admiral Nirmal Verma has recently said.

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Australian economic growth outlook stabilizing: survey

The outlook for Australia's economic growth appears to be stabilizing and may push back the next interest rate rise, a report released by Australia's Westpac Banking Corporation and the Melbourne Institute on Wednesday has found.

The annualized growth rate of the Westpac/Melbourne Institute Leading Index, which indicates the likely pace of economic activity three to nine months into the future, rose 5.3 percent in March 2011, above its long term trend of 3.4 percent.

Westpac chief economist Bill Evans said the growth rate of the leading index appeared to be stabilizing at a pace above its trend rate.

"That growth pace is broadly consistent with Westpac's forecast that the Australian economy will be growing at an annualized pace of around 4.5 percent in the second half of 2011," he said in the report.

"The first half of 2011 will be distorted by the likely contraction in the economy in the first quarter, which will be mainly due to a likely drag on the growth rate of nearly two percentage points from the external sector and inventories."

Evans said the case for the Reserve Bank of Australia to raise the cash rate this year was still yet to be fully made.

"While it is reasonable for markets to assume that one month is not critical to a central bank market, pricing does not give full certainty to a hike until June next year," he said.

"Despite market expectations we continue to expect a rate move in the very near term," Evans said.

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Obama invites rebels to open office in Washington DC

A senior U.S. diplomat says President Barack Obama has invited the Libyan rebels' National Transitional Council to open an office in Washington DC.

Speaking in the de-facto rebel capital of Benghazi, "U.S. Assistant Secretary-of-State for Near Eastern Affairs", Jeffrey Feltman, says the invitation marked an "important milestone" in the relationship with the NTC, and that he was pleased they had accepted the offer. Several countries, including France and Italy, have recognized the NTC, while the U.S., the European Union and others have established a diplomatic presence in Benghazi. In addition, Feltman announced that the US has given more than 50-million U.S. dollars to aid the Libyan people.

He said, "We've given today 53.5 (m) million (U.S.) dollars to address the humanitarian crisis that stems from Gadhafi's attack on his people. This is to international partners who are working in part inside Libya and in part with the refugees who are in Tunisia and Egypt. So, it's addressing refugee needs outside Libya's borders, it's addressing the needs of the people of Misrata and others, it's through international partners."

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Sony shares bounce back uncertainty removed

 Sony shares are bouncing back. Analysts say the company's warning yesterday that it could post a third straight annual net loss, helped remove an element of uncertainty.

Sony shares bounced from a two-month low Tuesday (May 24) as investors welcomed the certainty that comes with the company's latest earnings revisions.

The Japanese consumer technology giant says it expects a big net loss for the business year that ended March 2011, but says operating profit will come in at $2.4 billion.

More critically for investors, Sony is targeting a similar level of operating profit for the new business year that started in April.

Analysts say the revisions now provide a realistic view of the impact of the March 11 quake and a PlayStation network hacking incident that saw as many as 100 million customer accounts compromised.

The news prompted an upgrade on the stock from Macquarie, while others like Morgan Stanley, Credit Suisse and UBS repeated overweight and buy recommendations.

Macquarie also points out that Sony shares are now cheap, given a 260 billion yen fall in market value, compared to a 164 billion yen impact on operating profit from quake and hacking related costs.

Sony is scheduled to unveil its full earnings results on Thursday (May 26).

Its shares rose as much as 3 percent Tuesday (May 24) compared to flat trade in the broader market.

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Taiwan-funded companies urged to ensure production safety after fatal Foxconn blast

Chinese mainland spokeswoman Fan Liqing on Wednesday urged all Taiwan-funded companies to draw lessons from Friday's Foxconn blast, which killed three, and ensure production safety.

Fan, spokeswoman for the State Council Taiwan Affairs Office, said at a news briefing in Beijing that Foxconn and other Taiwan-funded companies should strengthen internal monitoring and management efforts and make timely precautions and investigate potential dangers.

Fan's remarks came after the blast occurred about 7 p.m. Friday at a workshop in Hongfujin Precision Electronics (Chengdu) Co. Ltd., a subsidiary of Taiwan-based Foxconn Technology Group, located in the provincial capital of Chengdu in Sichuan Province.

Two people were found dead and 16 others injured on Friday. The death toll rose to three after one seriously injured worker died in the hospital Sunday.

An initial investigation indicates that the explosion could have been caused by combustible dust in the polishing workshop. Investigators ruled out the possibility of deliberate sabotage, according to earlier reports.

"It has been initially recognized as a production safety accident," Fan said.

She confirmed that the operations in the polishing workshop, as well as other plant sections with similar manufacturing processes, have been suspended for further investigation and safety checks.

According to Fan, Foxconn has expressed willingness to make full efforts in solving any safety issues.

Foxconn, the world's largest electronics contractor, opened the 2-billion-U.S.-dollar Chengdu plant in October last year to manufacture primarily components of laptop computers and iPads.

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Wounded Australian soldiers making good recovery in Afghanistan: DM

Two Australian soldiers seriously hurt in a bomb blast in Afghanistan is making good recovery, Defense Minister Stephen Smith said on Wednesday.

In the latest Afghanistan fatality on Monday, Sergeant Brett Wood, 32, was killed in the explosion of an insurgent improvised explosive device, while two other Australian soldiers were seriously wounded.

"I am very pleased to be able to indicate that the latest advice I have this morning is that the two who were seriously injured are now in a satisfactory condition, "Smith told ABC television on Wednesday.

"They are both in an International Security Assistance Force medical facility in Afghanistan and so we are now confident that they will make a full recovery."

In a separate incident, another three Australian soldiers on Monday morning were hurt in a gunfight with insurgents in Afghanistan. They are being treated in Tarin Kowt.

Smith said these three soldiers were all in a satisfactory condition.

Wood was Australia's 24th soldier lost in a decade of involvement in Afghanistan, and the third so far this year.

Referring to the loss of Sergeant Wood, Smith said any death was terrible tragedy for the family and a blow to the nation.

But he reaffirmed Australia's commitment to stay the distance in Afghanistan, saying that progress had been made in the past 12 months in Afghanistan and gains made over the winter months had been consolidated.

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S Korea's Samsung signs contract to build oil facilities in Indonesia

An senior official said that the Indonesian unit of ExxonMobil Corp. has awarded contracts worth more than 780 million U.S. dollars to South Korean giant Samsung and its Indonesian partner, Tripatra Engineering, to build facilities at Cepu block, local media reported here on Wednesday.

BPMigas chairman Raden Priyono said the project would include building an oil-production facility at the oil and gas field in Central Java. The project was estimated to cost 900 million US dollars, but the consortium bid 780 million U.S. dollars.

"The tender will be completed soon, and its construction is expected to start in August this year," Piryono said on Tuesday. Tripatra is the engineering, procurement and construction services unit of Indika Energy, the nation's leading integrated energy company.

The Cepu block, located in Central Java, is operated by U.S. oil giant ExxonMobil. The field is 45 percent owned by ExxonMobil and 45 percent by state oil and gas company Pertamina, with the remaining 10 percent held by state enterprises, the Jakarta Globe reported.

Cepu's project will contain five separate units, Priyono said, including an onshore production facility, onshore pipes, offshore pipes, an offshore pile and supporting facilities such as an office building. The block is expected raise its disappointing output to 165,000 barrels of oil per day once the facilities are done in 2013.

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Federer eases to 2nd round at French Open

16-time Grand Slam title winner Roger Federer took on Spaniard Feliciano Lopez.

Federer had won their previous eight meetings. And the third seed was cruising in this contest taking the first two sets.

The Spaniard was a little more competitive in the third, forcing a tie breaker but that just prolonged the inevitable as Federer rolls in to the next round in straight sets. He'll meet local Stephane Robert who edged out the sixth seed Tomas Berdych of the Czech Republic.

Also on day two, Bjorn Phau from Germany lost to Frenchman Gael Monfils. Richard Gasquet beat Radek Stepanek in straight sets. Former US Open champion Juan Martin Del Potro won his match in four sets. Marcos Baghdatis defeated Frederico Gil, and Denis Gremelmayr lost to Nikolay Davydenko.

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Computer-aided system likely to advance brain surgery

A Chinese professor and his team at a Japanese university have invented a computer-aided system for brain surgery that will likely improve the success rate of surgical brain intervention.

Prof. Guo Shuxiang with Kagawa University said they had completed testing on the system and released a report at the ongoing medical engineering conference in Harbin, capital of northeast China's Heilongjiang Province.

According to Guo, surgical intervention is commonly used on organs such as liver, heart and lungs, but is rare and much more sophisticated when involving the brain.

The system consists of a computer and a controller that simulates human hand movements and inserts a tube into the brain accurately, which significantly improves the intervention effect.

Sensors are installed within the tube so doctors can monitor the readings of the tube as it transmits data from the blood vessels, Guo said.

The system can also record the entire process and use it later to train inexperienced doctors, he added.

Organized by Kagawa University and Harbin Engineering University, the 2011 Institute of Electrical and Electronic Engineers (IEEE) International Conference on Complex Medical Engineering endeavors to release new research results and explore new therapies.

More than 120 Chinese and foreign experts on medicine and engineering are attending the four-day event that began Sunday.

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Carlo Ancelotti out as coach for Chelsea

Chelsea is parting ways with coach Carlo Ancelotti. The announcement came moments after the club played out their final game of the season on Sunday, a 1-0 defeat at Everton.

Ancelotti joined Chelsea on June 1st 2009, a day after they won the FA Cup final by beating Everton 2-1 at Wembley.

In his first season in charge, he led 'The Blues' to the first league and cup 'double' in their 106-year history, but the 2010-11 campaign has been less successful.

A poor run of results, following the sacking of popular assistant manager Ray Wilkins last November hampered their attempts to retain the title, but it was widely reported that Ancelotti himself retained the support of Russian club owner Roman Abramovich.

In February, Chelsea were knocked out of the FA Cup by Everton in the fifth round and in mid-April they lost their Champions League quarter-final with Manchester United, after which Ancelotti insisted that it would "not be a problem" if Abramovich were to look for another coach if he so wished, which it appears he will now do.

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Canada imposes sanctions on Syria

 Canada Tuesday announced targeted sanctions on Syria following unrest and violent clashes in the Middle East country.

The measures include a travel ban on people associated with the Syrian government, an asset freeze on designated people and entities involved in Syria's security and military operations, and a suspension of cooperation agreements and initiatives between the two nations, Prime Minister Stephen Harper said in a statement.

He said Canada would also place a ban under the Export and Import Permits Act on certain Canadian commodity and technology exports to Syria that are subject to export controls, including arms, munitions, military, nuclear and strategic items.

But Harper said the sanctions are "not intended to cause harm to the Syrian people."

Since the onset of Syria's social unrest, Western countries have been accusing the Syria government of cracking down on protesters, while Syria blamed the turmoil on armed terrorist groups and foreign conspiracy.

Before Canada's announcement, the United States and the European Union already slapped sanctions on Syrian President Bashar al-Assad over his response to anti-government protestors.

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Mubarak to be tried, over 60 killed in Yemeni clashes

Former Egyptian President Hosni Mubarak and his two sons will be tried for killing peaceful protesters, while over 60 people were killed in fresh clashes in Yemen Tuesday.

Egypt's General Prosecutor Abdel Maguid Mahmoud decided to refer Mubarak and his two sons to a criminal court over charges of intentionally killing peaceful protesters, according to the state-run news agency MENA.

Mubarak and his sons Alaa and Gamal were accused of various charges, including premeditated murder of protesters during the nationwide anti-regime demonstration that toppled Mubarak's 30-year rule, the abuse of presidential power for private gain and profit, and the waste of public funds.

Mubarak is now being detained in a hospital in Red Sea resort Sharm El-Sheikh.

He was forced to resign on Feb. 11 after 18-day nationwide demonstrations, during which some 840 people were killed and more than 6,000 others injured.

The ruling Supreme Council of the Armed Forces denied last week that it intended to grant Mubarak and his family amnesty, stressing it had absolutely no intention to pardon Mubarak and his family.

In Yemen, at least 49 anti-government armed tribesmen and 15 government soldiers were killed in intensified clashes in the capital Sanaa.

Hundreds from both sides were injured. The Yemeni state TV channel reported that at least one civilian was also killed, and five others, a woman and four children, were injured.

An official from the Interior Ministry told Xinhua the armed tribes of the opposition leader Sadeq al-Ahmar, who is the chieftain of the most powerful Hashid tribe, fired mortar shells and rocket-propelled grenades (RPGs) against the ministry and a nearby security camp, killing 15 security forces and setting the highest floor of the Interior Ministry and a small building of the security camp on fire.

Al-Ahmar, who backed protests to oust Yemeni President Ali Abdullah Saleh, hired around 3,000 armed tribesmen from the Houthi-led Shiite rebels stationed in the northern province of Saada, according to Houthi sources.

An official from al-Ahmar's office told Xinhua that heavy attacks were launched by government forces against the residential compound of al-Ahmar, leaving at least 49 gunmen dead as RPGs and mortar shells ignited a fire inside al-Ahmar's compound.

The two sides have been trading fire since midday Monday after Saleh refused to sign a Gulf Cooperation Council-brokered deal to ease him out of power and end the political standoff.

The clashes on Monday killed at least 14 government soldiers and seven armed tribesmen, and wounded 61 others, according to a security official.

Meanwhile, Russian Ambassador to NATO Dmitry Rogozin said NATO operations in Libya were merely aimed at ousting Libyan leader Muammar Gaddafi instead of fulfilling UN resolutions on Libya.

"These actions have been reduced to (an attempt to) overthrow the Gaddafi regime, not fulfill UN resolutions," Rogozin was quoted by RIA Novosti news agency as saying.

"This is in open conflict with the UN Security Council resolutions," he added.

Rogozin also said Russia would formally ask NATO to clarify an imminent ground operation in Libya during a NATO-Russia Council meeting on Wednesday.

"We have information, and we are going to double-check this information by filing direct written inquiries to NATO," Rogozin said.

NATO said its air campaign had rolled back the ability of Libyan government forces to attack the opposition fighters and their supporters, and had effectively forced Gaddafi himself into hiding.

However, the three-month conflict seems to have reached a deadlock, as the opposition controls the eastern part of Libya and some of the west, but can't advance further westward to the capital Tripoli.

The UN Security Council Resolution 1970 imposed an arms embargo against Libya and slapped sanctions on members of Gaddafi's inner circle, while Resolution 1973 authorized a no-fly zone over Libya.

Russian Foreign Minister Sergei Lavrov said he hoped the African Union could hammer out a plan for breaking the deadlock in Libya during its meeting Wednesday.

"I hope that some positions will be worked out based on all these approaches (offered by opposition representatives in Benghazi,the African Union and the UN), which allows to stop a bloodshed as soon as possible," Lavrov told a news conference.

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Posted in: Mubarak to be tried,over 60 killed in Yemeni clashes

Indonesian president calls on NAM to be more proactive in 21st century

Indonesian president Susilo Bambang Yudhoyono called on the Non-Alligned Movement (NAM) to be more proactive to help sharp the new world of 21st century, after he formally established the 16th Ministerial Conference and Commemorative Meeting of the 50th Anniversary of NAM in Nusa Dua, Bali, Indonesia, on Wednesday morning.

The president said that the Movement, with the power of 118 member states, could be a greater force for peace, justice and prosperity in the 21st century, which is different from 1960s when NAM was founded.

The new world was marked by rapid power-shifts, as new power centers with growing economic, military and diplomatic resources were emerging, which were changing the weight of the world; as the media, non-governmental organizations, civil society, the private sector, and individuals had their capacity, resources and influence multiplied; as ordinary people wanted to take part in all decision-making processes that affects their lives; and as the new generation had no experience nor memory of the cold war, he added.

"That is why the best way for our Movement to be relevant is to be pertinent to today's challenges, and responsive to opportunities," Yudhoyono said.

Indonesian president called on NAM to be neither defensive nor dogmatic while marching forward in the world of challenge and opportunity, not only with confidence and courage but more importantly with a forward looking mind-set, and with a win-win world view

In details, he said that NAM could be a net contributor to a culture of global peace and security, to political development, promotion of democracy and advancement of good governance, and to equitable global prosperity, where no nation should be left behind.

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Detention centers riots cost Australia more than 9 mln USD

Riots at the Australian immigration detention centers are estimated to have caused losses of about 9 million AU dollars (9.45 million U.S. dollars) in damage, the Australian Immigration Department said on Wednesday.

A number of buildings were destroyed during violent protests at the Christmas Island and Villawood centers in earlier 2011.

Department spokeswoman Fiona Lynch-Magor told a Senate hearing Serco, the company that runs the centers, would make an insurance claim for the damage.

The Immigration Department also said there were not enough federal police on Christmas Island to arrest asylum seekers who escaped from the detention center during protests earlier this year.

Department spokeswoman Jackie Wilson told Australian Broadcasting Corporation that it was not possible to arrest the group.

"The numbers of police on the island and the need to secure the airport as a priority did not enable us to have sufficient AFP ( the Australian Federal Police) on the island to do that," she said.

The Opposition said the lack of federal police left the island in a vulnerable position.

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Posted in: Detention centers riots cost Australia more than 9 mln USD

China donates more than 200 Chinese books to Cambodia

 The Embassy of China here on Wednesday donated more than 200 Chinese language books to the Confucius Institute of the Royal Academy of Cambodia.

The hand-over ceremony was held at the Royal Academy of Cambodia (RAC) between Chinese ambassador Pan Guangxue and the RAC ' s president, Khlot Thyda.

The books include Chinese dictionaries, cultures, traditions, economics, politics, stories, sciences, poetries and so on, said Pan Guangxue.

"We hope that the books will help Cambodian students and researchers to learn and understand broadly about China," he said.

"Besides helping Cambodia in social and economic development, China wishes to see flourishing cooperation with Cambodia on education and culture."

Meanwhile, Khlot Thyda thanked China for both financial and technical supports to the RAC and said the book donation was a progressive step of cooperation between Cambodia and China on education.

"China is a country with glorious civilization and is the globe ' s second largest economy, so the study and research on Chinese cultures and scientific development are necessary to broaden knowledge for learners and researchers," she said.

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Tornadoes, storms kill 6 in Oklahoma, Kansas

At least six people were killed and many others injured after a string of tornadoes and thunderstorms Tuesday hit Oklahoma and Kansas, authorities said.

The Oklahoma's Canadian County Sheriff said that a large tornado near El Reno, a city in Canadian County, destroyed residences and caused a gas leak at an energy plant west of Oklahoma City.

A spokesperson for the state medical examiner confirmed that four people died in the county.

The Oklahoma Department of Emergency Management Statewide said at least 60 people were injured and nearly 58,000 homes lost power around the state. Besides, damage was reported in at least 14 counties.

Moreover, two motorists died when an uprooted tree hit their van in Stafford County, Kansas, according to Kansas state adjutant general's office.

About 1,200 people packed a shelter in Newcastle, a community near Oklahoma City, during the storm, said Oklahoma City Manager Nick Nazar.

Oklahoma Governor Mary Fallin said residents should take tornado warnings and reports "very seriously."

Another tornado was seen at Chickasha, about 40 miles southwest of Oklahoma City. It later reached Newcastle, closing in on Moore and Norman, suburbs of Oklahoma City. This tornado also damaged several other communities.

"This is an extremely dangerous and life-threatening situation," the National Weather Service warned during the storms. Tornado watches were in effect Tuesday evening in Texas, Missouri, Arkansas, Oklahoma and Kansas.

Twisters also brewed in Dallas and several northern Texas counties, said the National Weather Service, with at least one tornado reported on the ground.

The Storm Prediction Center said the high-risk area for severe storms includes southern Kansas, most of Oklahoma and southward into Texas.

The tornado that struck Joplin, Missouri, on Sunday killed at least 122 people, making it the deadliest single tornado in the United States since modern record-keeping began more than 60 years ago.

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Could Thai election cool political unrest

It is very certain that the ruling Democrat Party and the opposition Pheu Thai Party will fight each other tooth and nail in the upcoming general election slated for July 3 though both are not expected to win enough seats to form a single-party government, analysts said.

This general election will be held in the wake of deadly crisis in 2009 and 2010 when the anti-government "red-shirts", backed by ex-premier Thaksin Shinawatra and Pheu Thai Party, organized mass protest to press for dissolution of lower house of parliament and holding a snap election.

The prolonged demonstration in the capital Bangkok from March to May in 2010 ended up with a bloody crackdown and left 91 people dead and almost 1,900 injured.

UNCERTAIN SITUATION FOR THE WINNER

All recent opinion polls conducted by different institutes showed that the Pheu Thai Party would gain majority votes in the July 3 election. However, it might be unrealistic that the party will win 270 seats as it wants in order to form a single-party government.

The most optimistic estimate gives Pheu Thai Party 175 of overall 375 seats of constituency-based system, and combined with speculated 60 of 125 party-list MPs, it will get a total of 235 seats, still short of the 251 seats needed to form a majority government on its own.

Pitch Pongsawat, a political science lecturer at Chulalongkorn University, noted that Pheu Thai must win more than 250 seats in a bid to form a government; otherwise, its victory would not ensure that it would become the ruling party.

The key factor in the game of forming government was other small parties, such as Chartthaipattana Party, Pitch added.

Some analysts said the Democrat Party was able to win about 200 seats, which will be enough to convince smaller parties to join a coalition government. When plus estimated 50-60 seats from Bhumjaithai Party, its main coalition partner, the Democrat-led government would secure some 250 seats.

In order to gain decisive majority in the House, Democrat needs the third party to join.

POLITICAL CHAOS AS ELECTION AFTERMATH? If Pheu Thai won the election and had a chance to form a government, the first priority is to push forward an amnesty law to pardon those affected by the September 2006 military coup, and pave the way for its de facto leader and the ousted premier Thaksin Shinawatra to return home.

Thaksin was convicted of corruption in 2008 and has lived in exile to avoid a two-year sentence.

"Should Pheu Thai Party take power, the matter of Thaksin's coming back will certainly become main agenda and controversy between supporters and dissenters will overshadow other issues in Thai politics," Pitch said.

On the other hand, if the Democrats return to power, the pro- Thaksin red-shirt movement will again take to the street, he added.

An opinion poll conducted recently showed that 46.04 percent of 1,343 respondents in Bangkok and its vicinity worried political unrest may prevail in the aftermath of election.

A political lecturer from Thammasat University said that reconciliation would be unforeseen no matter which party holds the rein of government. While Pheu Thai cannot afford to fail in their attempt to set up a government as Thaskin's future is at stake, Democrat must do everything to preserve power to avoid the opposition revenge.

There is always light at the tunnel's end, however.

"Even with repeated election, democracy in Thailand will pick up because at one point people have to learn to live in harmony as they know the cost of conflict is high," Pitch affirmed.

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UN turns up heat on Gillard's refugee solution

The UN High Commissioner for Human Rights has attacked Australia's Prime Minister Julia Gillard's latest attempt to deflect asylum seekers from landing on Australian soil.

Speaking before a packed audience in Sydney's Town Hall, Navi Pillay was fiercely critical of the Australian Government's recent deal with Malaysia, saying it was in violation of the international refugee convention.

Pillay said that because Malaysia has not ratified the commonly held conventions on torture or refugees, Australia was effectively dealing with a partner that remains unbound in its obligations.

The Commissioner urged Australians to reject the proposed deal. "Australians or people who uphold refugee standards internationally should not collaborate with these types of schemes, " she said.

Prime Minister Julia Gillard's government made public its intention to strike a deal with Malaysia to take 800 refugees, picked up in boats heading for the Australian coast.

The deal has been lambasted from all sides of the inflamed ' boat people' debate in Australia. The final details of the deal are yet to be made public, reinforcing concerns that the Labor government is devising policy on-the-run.

The ongoing deal will reportedly see Australia accept and resettle 4,000 apparently genuine Burmese refugees who are currently being processed in Malaysia's sub-standard detention centers.

More than 100 asylum seekers have arrived in Australia since the working agreement was announced. The Australian Government is yet to confirm where their refugee claims will be processed. The method and location of processing claims has attracted the attention of human rights groups and earned the ire of Ms Pillay.

Australia's mandatory detention policy - both off-shore and in detention centers located in Sydney and in isolated regional high- security facilities continues to attract criticism from the UNHCR.

Most detainees are held at the offshore facilities like the notorious Christmas Island detention center which has been the scene of violent riots and breakouts since November last year.

While the number of refugees arriving in Australia is negligible, especially in comparison to European states who have borne the brunt of the recent North African upheaval, the issue continually inflames passions on all sides of the political spectrum.

Pillay said the thoughts of a sympathetic audience by suggesting the Federal Government had waylaid its fundamental responsibilities somewhere in the heat of the debate.

"The first option should not be how best to turn away people, the first option should be how to receive people." she said.

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No evidence that dam causes drought: experts

Specialists said Wednesday there is no evidence to support the hypothesis that the Three Gorges Dam, the world's largest water conservation project, is to blame for the severe drought currently plaguing central China.

"With the current observation devices and data, we have found no evidence that the drought was caused by the dam," said Liu Min, a meteorological specialist with the Hubei Provincial Weather Bureau.

Judging from data collected before and after the dam was built, Liu said it had "very little" impact on the regional temperature, humidity, wind velocity and other climate conditions.

In their report on the Three Gorges Dam's impact on the local environment, Liu and his colleagues concluded the impact was less than 10 kilometers.

"So we believe the ongoing drought is more a periodical phenomenon than a result of improper water conservation," Liu said.

The worst drought to hit the middle and lower reaches of the Yangtze River in 50 years has affected 9.89 million people in four central provinces, including Hunan, Hubei, Jiangxi and Anhui.

Some Internet users have blamed the dam.

"The dam has blocked water from flowing downstream -- that certainly causes climate changes," said a Beijinger who gave his screen name as "Bull village head."

Extreme weather conditions in recent years, including last year's prolonged drought in southwest China and torrential rainfall in the central provinces, have almost always triggered public suspicion over the dam.

Zheng Shouren, an academician with the Chinese Academy of Engineering and one of the dam's chief designers, dismissed such blame and suspicion as groundless and unfair. "Had there not been the dam, the drought would have worsened in the middle and lower reaches of the Yangtze."

The dam, he said, was designed to store water toward the end of the Yangtze's flood season and supply water to the middle and lower reaches in the dry season. "During the dry season from January to May, water supplies from the dam reservoir exceeded Yangtze's natural water flow to the downstream by 2,000 cubic meters."

The Three Gorges Dam was launched in 1993 with a budget of 180 billion yuan (22.5 billion U.S. dollars).

Located on the middle reaches of the Yangtze River in Hubei Province, the total project consists of a 185-meter-high dam, which was completed in early 2006, a five-tier ship lock, the reservoir, and 26 hydropower turbo-generators.

The project generates electricity, controls flooding by providing storage space and adjusts shipping capacity.

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Unilever raises prices in China weeks after being fined for price-hike speculation

Unilever (China) Co., Ltd. has raised the prices of some of its products in China three weeks after it was fined by the Chinese government over spreading news of price hike.

Many supermarkets and shopping malls in China's southern city of Guangzhou have been informed about the price hike from the company, the Guangzhou Daily reported Wednesday.

Unilever's brands in China, which include Lux and Hazeline, have posted 10-percent price increases, the newspaper said after visiting some supermarkets in Guangzhou.

The company was unavailable for comment.

China's top price regulator announced on May 6 that Unilever would face a fine of 2 million yuan (303,000 U.S. dollars) over its statements of planned price hikes that contributed to the public's inflationary expectation and triggered panic buying.

The newspaper quoted an insider as saying that the price issue became very sensitive for the company after it was fined.

Unilever promised to postpone the price hike, but did not deny such a possibility in the future.

Rising costs in crude oil and domestic logistics have intensified the pressure for consumer product manufacturers, said Yu Xueling, secretary general of the chamber of commerce of consumer product of Guangdong province.

The Chinese government has said the fight against the stubbornly high inflation is the top priority for this year.

The National Development and Reform Commission (NDRC), China's top economic planner and price regulator, pledged to step up efforts to monitor and supervise price fluctuations.

It vowed to punish those who intentionally spread the news of price hikes that could trigger panic-buying.

A cameraman videotapes outside the headquarter of Unilever China in Shanghai, east China, May 6, 2011.

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Posted in: Unilever raises prices in China weeks after being fined for price-hike speculation