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German Police Arrest Suspect in Bombing of Soccer Team Bus

German police arrested a man Friday who is suspected of planting explosives targeting the bus of soccer team Borussia Dortmund last week, the office of the German federal chief prosecutor said.

The 28-year old man, a dual German and Russian national identified as Sergei V., had bought options on Borussia Dortmund’s stock before the attack, hoping to make a profit, it said in a statement.

The players’ bus was heading to their stadium for a Champions League match against AS Monaco April 11 when three explosions occurred, wounding Spanish defender Marc Bartra and delaying the match by a day.

The suspect is accused of attempted murder, inflicting serious bodily harm and causing an explosion, the prosecutor’s office said.

It said he had bought 15,000 put options, or contracts giving him the right to sell Borussia Dortmund’s shares at a pre-determined price, on the day of the attack, using a consumer loan he had signed the previous week.

“If the shares of Borussia Dortmund had fallen massively, the profit would have been several times the initial investment,” the prosecutor’s office said.

The serious injury or death of any of the soccer players could have resulted in such a slump, it said.
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Library Releases Catalog of UN War Crimes Commission Documents

Holocaust denial just got a little harder.

The Wiener Library for the Study of Holocaust & Genocide is making the United Nations’ files on World War II war crimes more accessible by allowing the general public to search an online catalog of the documents for the first time beginning Friday. People will still have to visit the library in London or the U.S. Holocaust Museum to read the actual files.

The move is expected to increase interest in the archives of the United Nations War Crimes Commission, including the names of about 37,000 people identified as war criminals and security suspects. The commission operated in 1943-1949, but access to its records was restricted for political reasons in the early days of the Cold War.

Blow to Holocaust denial

“This is a whole hardware store of nails to hammer into the coffin of Holocaust denial,” said Dan Plesch, director of the Center for International Studies and Diplomacy at SOAS University of London. “It’s the first time it is practically accessible to the general public as the commission initially intended.”

Plesch and other researchers campaigned for the U.N. to open access to the files, which he used to write the book “Human Rights After Hitler.” In 2014, the U.S. Holocaust Museum made the archive freely available at its reading room in Washington. Before that, the records had been largely locked away at the United Nations, which granted only limited access.

“Nobody has paid any attention to it,” said Ben Barkow, director of the Wiener Library. “It has been hidden in plain sight.”

War criminal prosecution

The documents detail Allied efforts to prosecute thousands of alleged Nazi and Japanese war criminals, from heads of state like Adolf Hitler to guards at the Auschwitz and Treblinka concentration camps.

The archive includes evidence gathered by local people who documented crimes long before the war ended and smuggled the information to Allied leaders in London.

“These people were meeting under aerial bombardment, dealing with affidavits smuggled out” of occupied countries, Plesch said. “Resistance movements were paying attention to the legal prosecution of oppressors.”
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World Bank: Automation Could Wipe Out Two-Thirds of Jobs in Developing Countries

As economic and political leaders gather in Washington for the annual spring meetings of the World bank and International Monetary Fund — new warnings Thursday about the impact of rapid change on the global economy. At issue, the pace of technological advance and its Impact on jobs, particularly in developing economies. Mil Arcega has more.
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US Reviewing Venezuela’s Seizure of GM Assets

U.S. officials are reviewing Venezuela’s seizure of General Motors’ assets in the country, U.S. State Department spokesman Mark Toner said Thursday.

“We are reviewing the details of the case,” Toner said in a statement, saying the United States hoped to resolve the matter “rapidly and transparently.”

GM said Wednesday that Venezuelan authorities had taken over its plant in the industrial hub of Valencia, adding that it was halting operations and laying off 2,700 workers due to the “illegal judicial seizure of its assets.”

The largest U.S. automaker vowed to “take all legal actions” to defend its rights. The seizure comes amid a deepening economic crisis in leftist-led Venezuela that has already roiled many U.S. companies.

The seizure is the result of a civil dispute with a Venezuelan concessionaire dating back to 2000 and does not represent a nationalization as such, according to local media reports.

GM, the market leader in Venezuela for 35 years, said in a statement that in addition to the plant seizure “other assets of the company, such as vehicles, have been illegally taken from its facilities.”

Total auto production in Venezuela fell to a historic low of 2,849 cars in 2016, nearly 75 percent less than the year before, according to Venezuela’s automotive industry group.

In the first two months of 2017, GM has not produced any vehicles, while total Venezuelan auto production was just 240 vehicles, down 50 percent over the same period last year. The New York Times reported the GM plant had been closed for the last six weeks as a result of a takeover by members of one of its unions.

Nearly all vehicles built in Venezuela in the first two months this year were assembled by Toyota Motor Corp, which said Thursday that its plant was operating normally.

But a spokesman added the automaker was “only producing based on orders that come in.”

Venezuela’s car industry has been hit by a lack of raw materials stemming from complex currency controls.

In early 2015, Ford Motor Co wrote off its investment in Venezuela when it took an $800 million pre-tax writedown. The company said Thursday it was not producing vehicles in Venezuela.

The South American nation’s economic crisis has hurt many other U.S. companies, including food makers and pharmaceutical firms. A growing number are removing their Venezuelan operations from their consolidated accounts.
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Trump Orders National Security Probe of Steel Imports

President Donald Trump has ordered an investigation into whether foreign steel imports are damaging U.S. national security, saying his administration would “fight for American workers and American-made steel.”

The probe is authorized under a rarely used section of a 1962 trade law that allows a president to restrict imports in cases where security interests are at stake.

“This has nothing to do with China,” Trump insisted, adding, “This has to do with worldwide, what’s happening. The dumping problem is a worldwide problem.”

Steel industry

Surrounded by steel industry executives at an Oval Office signing ceremony Thursday, Trump clearly stated the probe was not directed at China, which has long been accused of dumping its excess steel production on U.S. markets.

The president said the investigation could be completed within 50 days, far ahead of the nine months prescribed by law.

Shares of steel companies surged on news of the probe. The price of United States Steel Corporation stock was up more than 8 percent soon after the announcement.

“The important question is protecting our defense needs,” said Commerce Secretary Wilbur Ross, who added the investigation is designed to find a balance between free trade and national security while building up the U.S. military. “And we will do whatever is necessary to do that.”

Ross noted that steel imports rose nearly 20 percent in the first two months of this year, much of it from China, and now make up more than 26 percent of the entire American marketplace.

“Steel imports, despite measures already taken, have continued to rise despite repeated Chinese claims that they were going to reduce their steel capacity,” he said. “Instead, they have actually been increasing it consistently.”

Investigation sought

Steel industry executives attending Thursday’s Oval Office ceremony applauded Trump’s call for an investigation.

Mario Longhi, the CEO of U.S. Steel Corporation, said, “The signing of this executive order clearly demonstrates your understanding of the fundamental importance that our industry has, not just to the national economy, but to the national defense.”

Trade experts and free market advocates, however, were skeptical of Trump’s rationale for the investigation.

“It’s just a bogus attempt to limit imports,” said Dan Griswold, a research fellow at the Mercatus Center at Virginia’s George Mason University.

Griswold said any move to restrict imports would be bad for U.S. industry and consumers because it would drive up prices for products that contain steel, from appliances to automobiles to new houses.

“But it will make certain steel producers and their politically active unions increase their profits and the gains they make by restricting competition,” he said.

Issue of national security

Gary Hufbauer, senior fellow at the Peterson Institute of International Economics in Washington, questions the idea that dependence on foreign steel is a national security issue.

Hufbauer, who served as a senior Treasury Department official under former President Jimmy Carter, said the probe reflects the thinking of Commerce Secretary Ross, a billionaire investor with close ties to the steel industry.

“It’s not coming from the defense industry,” Hufbauer said. “It’s coming from the steelmakers, and key administration figures starting with Ross and others who feel the steel industry has been beset by steel from abroad and that’s weakening the U.S. steel industry. But that’s from a commercial standpoint, not a defense standpoint.”

Ross stepped down from the board of the Luxembourg-based steel giant ArcelorMittal after accepting the job as Trump’s commerce secretary.

A financial disclosure form he filed with the Office of Government Ethics shows Ross served on ArcelorMittal’s board for nearly a decade, and was paid more than $100,000 in director’s fees last year. He was also reported to have divested himself of between $750,000 and $1.5 million in equity holdings in the company, which is described on its home page as “the world’s leading integrated steel and mining company.”

Bloomberg News reported this week that while U.S. steelmakers may be counting on Trump to help business, any regulatory change could take years.

In a note to clients, Bloomberg Intelligence analyst Caitlin Webber wrote that changes would also likely be challenged at the World Trade Organization.
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Lagarde: IMF Can Cooperate With Trump Administration

The head of the International Monetary Fund says she “has every reason to believe” that the global lender can cooperate with the Trump Administration to support and improve global trade.

IMF Managing Director Christine Lagarde spoke in Washington as economic and political officials gathered from around the world at this week’s meetings of the IMF and the World Bank.

Candidate Donald Trump blamed what he called unfair trade for the loss of many jobs in the United States, and proposed tax increases for imported goods. President Trump recently signed an order to give U.S. firms a better shot at selling goods to the U.S. government, and has been sharply critical of immigration policies.

Lagarde says trade is one of the “pillars” of prosperity. She vowed to continue to support the growth of trade, seeking ways to make it more efficient and fair, and fight against protectionist measures.

Lagarde said the global economy is “picking up momentum,” because of “sensible” policies in many nations. Speaking a little earlier, World Bank President Jim Yong Kim said he is “encouraged” to see stronger economic prospects after years of “disappointing” global growth. He said growth is hampered by conflict, climate shocks, the worst refugee crisis since World War II, and famine in certain areas.
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Nigerian Anti-graft Activists Want Further Action From Buhari

Anti-corruption activists in Nigeria say the president’s suspension of two top officials is only a first step and must be followed up with more action.

On Wednesday, Buhari suspended national intelligence agency chief Ayo Oke, who was linked to more than $40 million found in an empty Lagos apartment, and the secretary of his government, David Babachir Lawal, who allegedly collected money on a phony contract.

Abdulkarim Dayyabu is chairman of the Movement for Justice in Nigeria, a non-governmental organization.  He says the suspensions are overdue.

“This should have been done a long time ago,” Dayyabu told VOA’s Hausa Service on Thursday.  “Someone like Buhari ought to take immediate measures against any official accused of corruption; he should not wait for too long.”

Abdulmajid Dan Bilki Kwamanda is a member of the ruling APC coalition who recommends the president move against other aides.

“Buhari is finally fighting corruption from within.  He must continue to look inwards and confront his senior officials who are accused of corruption head-on,” he said.”

Another activist, Naja’atu Mohammed, is skeptical that the suspended officials will be held accountable, saying the administration shielded Lawal previously when senators accused him of corruption.

“We are looking for results,” she told VOA.

There have been calls, including one from Nigeria’s Senate, for the removal of Lawal over his alleged complicity in the mismanagement of funds meant for a presidential initiative on northeastern Nigeria

Rholavision Engineering, a company owned by Lawal, received payments of about $500,000 from a contract he awarded for the clearing of “invasive plant species” in Yobe state.

Oke, director-general of the National Intelligence Agency (NIA), is embroiled in the discovery of $43 million in cash by the Economic and Financial Crimes Commission, EFCC.

So far, no one has claimed ownership of the money, which was in both local and foreign currencies.

Ownership of the apartment complex in which the funds were found, Osborne Towers Lagos, is still unclear, but the building is occupied by many powerful Nigerians including the former chairman of the opposition party, Ahmadu Muazu, whose PDP ruled Nigeria for years under former president Goodluck Jonathan.

Government spokesman Femi Adesina said the government has launched an investigation into the funds.

Another presidential spokesman, Garba Shehu, told VOA’s Umar Farouk Musa in Abuja that Buhari has given two probe panels, headed by Vice President Yemi Osinbajo, two weeks to investigate and submit their findings.

The suspensions follow recent discoveries of large amounts of money by the EFCC in strange places, including homes of senior government officials.

Last month, the EFCC found about $1.25 million abandoned in large bags at the Kaduna airport.

Earlier, nearly $10 million was seized from the home of a former head of Nigeria’s National Petroleum Company, NNPC, in the northern state of Kaduna.

The EFCC also uncovered yet another unclaimed $1 million in two shops at a shopping mall in Victoria Island, Lagos.  

A new government initiative to reward whistleblowers is encouraging many Nigerians to reveal the secret locations of money stashed away by corrupt officials. The EFCC, Nigeria’s anti-corruption agency, has offered to give up to 5 percent of amounts recovered to the informants, whose identities it protects.
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Atlantic Salmon Farms Shift to Open Seas, Trying to Shake Off Lice

Atlantic salmon farming companies are designing huge pens to raise fish in the open seas in a radical shift from calm coastal waters where marine lice have slowed growth of the billion-dollar industry.

The drive for new designs by Norway, producer of 54 percent of all farmed Atlantic salmon in 2016, will have to cope with ocean storms that can rip cages and free thousands of fish.

Escapees disrupt natural stocks by breeding with wild cousins.

“The industry has to develop and to solve the environmental challenges it has, especially linked to salmon lice,” Norwegian Fisheries Minister Per Sandberg told Reuters, referring to parasites that often spread infections resistant to antibiotics.

One in five salmon farmed in Norway dies before reaching maturity, partly due to tiny blood-sucking lice that latch onto the outside of the pink fish.

Lice, also a problem in other countries, tend to concentrate in the more stagnant waters of Norway’s bays and fjords where farms are now based. A shift offshore would expose farms to ocean currents that should help to sweep away the lice larvae.

The Norwegian Directorate of Fisheries is seeking innovative fish farm designs, both for offshore and coastal waters, in a two-year drive open until November 2017. So far it has approved a handful and is reviewing about 40 others.

Many borrow ideas from the offshore oil and gas industry.

The lure of offshore pens is that they would open almost unlimited areas for fish farms beyond bays and fjords, attracting investors and transforming the global aquaculture industry.

Norway produced 1.1 million tons of salmon in 2016, more than double the output of number two producer Chile, and earned $7.6 billion in exports. Smaller producers include Britain, the Faroe Islands and Canada.

But Norway’s production, by companies including Marine Harvest, SalMar and Leroy Seafood, has been little changed since 2012 due to lack of space and disease, even as rising demand has pushed prices to record highs.

Storm risks 

“We’ll take the project that works best, has no salmon lice, the lowest cost, no escapes and is industrial,” Marine Harvest’s chief executive officer Alf-Helge Aarskog told Reuters of a range of designs the company has proposed.

Nets in coastal farms sometimes tear in storms, harming wild stocks from Scotland’s Spey River to Norway’s Alta River, and offshore farms will be exposed to far stronger winds and waves. Last year, 126,000 salmon broke out of Norwegian farms.

“Escaped fish mix with the wild salmon – that creates problems with genetics,” said Ingrid Lomelde, of the WWF Norway Farmed fish are bred to grow fast and fatter than their sleek wild cousins. Interbreeding could produce fish too weak, for example, to leap up waterfalls to reach spawning grounds.

Among approved designs, SalMar is building what it calls the “world’s first offshore fish farm” to start in late 2017 — a floating circular construction 110 metres (360 ft) across that looks like a drilling rig, apart from huge nets dangling below.

The 700 million Norwegian crown ($82 million) yellow and white steel construction is being built at a Chinese yard, and will be big enough to raise more than a million salmon.

“We’re starting to install the anchoring systems,” off the coast of mid-Norway, chief financial officer Trond Tuvstein said. “No one wants escapes,” he said.

In Chile, Felipe Sandoval, head of industry group SalmonChile, said the government wanted more research into farming in more exposed and offshore areas. “We will have to wait a bit to see how this takes off,” he said.

Most approved designs in Norway are still on the drawing board, such as a sealed 44-metre (144.36 ft) tall egg-shaped tank by Marine Harvest where the fish swim inside in seawater filtered to keep out lice, or a 400-metre long farm by Nordlaks shaped like a supertanker.

Egg

Marine Harvest hopes to start building an “Egg” prototype in mid-2017, CEO Aarskog said. The sealed design would be suited for calm waters in fjords and is favored by environmentalists and river owners as a way of isolating any disease.

If successful, “the technologies will allow aquaculture in more exposed areas globally” including for other types of farmed fish such as sea bass or bream, said Tore Toenseth, an analyst at SpareBank 1 Markets in Oslo.

Huge new cages able to withstand storms could be used anywhere, from Japan to the United States, he said.

But river owners say not enough is done to protect wild stocks by the expansion of farming.

“It’s a very vulnerable system,” said Erik Sterud, of the river owners’ association Norske Lakseelver, who estimates there are now just 500,000 wild salmon off Norway against half a billion farmed fish.

Companies are willing to invest hundreds of millions of crowns in the new technologies partly because Norway will award licenses to operate the new fish farms, almost for free.
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Pope Sets May 13 for Canonization of Fatima Siblings

Pope Francis confirmed Thursday he will use his upcoming visit to the Portuguese shrine at Fatima to canonize two Portuguese shepherd children who say they saw visions of the Virgin Mary 100 years ago.

 

Francis convened his cardinals to formally set the May 13 date for the saint-making Mass.

 

Originally, Francis had planned to travel to Fatima on May 12-13 to merely mark the anniversary of the apparitions, which turned the tiny northern Portuguese town into one of the world’s most popular Catholic pilgrimage sites.

 

But last month, Francis signed off on the miracle needed to make siblings Francisco and Jacinta Marto saints, leading to speculation he would also use the occasion of the visit to canonize them. Church officials say the miracle concerned an inexplicable cure of a Brazilian child.

 

The Marto siblings say the Virgin Mary appeared to them and their cousin six times above an olive tree in 1917 and told them three secrets. The brother and sister died of pneumonia two years later, at the ages of 9 and 11.

 

St. John Paul II beatified them in Fatima on May 13, 2000, the same day the Vatican revealed the third and final secret purportedly told to them. The first two had already been reported: a vision of “hell” interpreted as World War II, and the rise and fall of Soviet Communism. The Vatican said in 2000 that the third secret foretold the 1981 assassination attempt on John Paul.

 

John Paul credited the Fatima Madonna with saving him, and one of the bullets fired at him by a Turkish gunman in St. Peter’s Square 36 years ago is kept in the crown of the Fatima statue at the sanctuary. Francis is expected to pray before the icon during his visit.

 

With the Marto children soon to be declared saints, all that remains is the saint-making case of their cousin and co-visionary, Lucia de Jesus dos Santos, who became a Carmelite nun and died in 2005.

 

In February, Portuguese church officials turned over 15,000 pages of testimony and other documentation to the Vatican for review to determine if she can be declared to have lived a life of heroic virtue, the first step in the Vatican’s complicated saint-making process.

 
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Trilateral Talks on Syria Postponed After US Backs Out

U.S., Russian and U.N. trilateral talks on Syria scheduled for Monday have been postponed, says U.N. Special Envoy for Syria Staffan de Mistura.

De Mistura says he does not know why the United States has decided against attending the meeting early next week, but believes Washington remains committed to the three-way discussions on the Syrian situation.   

“I would say that the indication I got from Washington is exactly that, that there is clearly an intention to maintain and resume these trilateral meetings,” he said. “And, the date and the circumstances were not conducive for this to happen on Monday, but that is certainly their intention.” 

In the meantime, de Mistura says he will be holding what he calls a very intense bilateral meeting on Monday with Russian Deputy Foreign Minister Gennady Gatilov. He says there are many things to discuss regarding the upcoming meeting in the Kazakh capital, Astana, and on the Geneva peace talks.

“Regarding Astana, it is still on as forecast,” he said. “We will be involved again on a senior technical level in order to support what, at the moment, does not seem to be working, which is a cessation of hostilities.” 

Russia, Turkey and Iran are sponsors of the Astana negotiations on May 3 and 4, which will focus on arranging a cease-fire in Syria so peace talks in Geneva can proceed. 

De Mistura says he will be watching developments on the ground to make sure the talks, set to resume sometime in May, have the best possible chance of success.
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Microsoft’s Gates: British Foreign Aid Cuts Could Cost African Lives

Billionaire Microsoft founder Bill Gates is urging British leaders not to back down from their commitment to foreign aid, saying it could cost lives in Africa.

Gates on Wednesday was in London, where campaigning has started for early elections called by Prime Minister Teresa May.

May has so far declined to say whether she will heed calls by fellow Conservatives to slash British foreign aid as part of her party platform.

Gates told the Guardian newspaper Wednesday that a British refusal to commit itself to targeted spending on foreign aid could hurt efforts to wipe out malaria in Africa.

“The big aid givers now are the U.S., Britain and Germany … and if those three back off, a lot of ambitious things going on with malaria, agriculture and reproductive health simply would not get done,” he said.

Gates said British funding has made an “absolute phenomenal difference” in eradicating tropical diseases that affect more than 1 billion people.

Many conservatives want the government to spend more money at home to combat domestic crises. Some also contend that foreign aid money is frequently squandered.

Gates said as a business executive who spends $5 billion a year helping developing nations, he hates wasting money. But he told an audience of British politicians and diplomats that no country can “build a wall to hold back the next global epidemic,” and that foreign aid combats socioeconomic problems “at the source.”
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French Candidates Boost Security Ahead of Tense Vote

A feel-good Paris concert, a meeting with Muslim leaders and a blowout rally in Marseille – France’s presidential candidates are blanketing the country Wednesday with campaign events to try to inspire undecided voters just four days before a nail-biting election.

 

Crowds danced on a Paris plaza as Socialist presidential candidate Benoit Hamon held what is seen as a last-chance rally and concert. Hamon is polling a distant fifth place ahead of Sunday’s first-round election and has little chance of reaching the decisive May 7 runoff – a failure that could crush his party.

 

French far-right presidential candidate Marine Le Pen, who has dominated the campaign with her anti-immigration, anti-EU proposals, is appealing to her electoral base in hopes of maintaining a shot at the runoff.

 

She assailed recent governments for failing to stop extremist attacks in recent years and warned on BFM television that “we are all targets. All the French.”

 

The candidates have increased security in recent days. Authorities announced Tuesday that they had arrested two Islamic radicals suspected of plotting a possible attack around the vote.

 

Independent centrist candidate Emmanuel Macron reached out to the French Muslim community Wednesday, saying it’s fighting on a “common front” alongside the state against Islamic extremism.

 

Macron met with the head of leading French Muslim group CFCM, Anouar Kbibech. In a statement afterward, Macron insisted on the importance of respecting France’s secular traditions but said they shouldn’t be used to target Muslims. Some Muslims feel unfairly targeted by French laws banning headscarves in schools and full-face veils in public.

 

Also Wednesday, the Grand Mosque of Lyon issued an appeal urging Muslims to cast ballots instead of isolating themselves, “so that all the children of France, regardless of their skin color, their origins or their religion, are fully involved in the future of their country.”

 

Le Pen also defended her decision to force national news network TF1 to take down the European flag during an interview Tuesday night.

 

She said Wednesday that “I am a candidate in the election for the French republic” and that Europe is acting like France’s “enemy.”

 

Accusing the EU of taking away France’s sovereignty and hurting its economy, she wants to pull France out of the EU and the euro – which would devastate the bloc and badly disrupt financial markets.
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Finance Minister: Peru Economy to Recover in 2018, 2019 After Flood Damage

Peru’s economy will recover in coming years with investment in construction after recent flooding, likely growing 4.5 percent in 2018 and 5 percent in 2019, Finance Minister Alfredo Thorne said on Wednesday.

Previously, the government had expected growth of 4.3 and 4.1 percent for the next two years.

The estimate for 2017 growth was lowered this month to 3 percent from 3.8 percent previously due to flooding.

“The shock will be temporary,” Thorne said in a presentation at Lima’s Chamber of Commerce.

The floods have damaged 6,000 kilometers (3,728 miles) of roads, destroyed thousands of houses and killed 106 people since December.

Peru’s economy, which has also been hurt by paralyzed infrastructure projects due to a corruption investigation involving Brazil’s Odebrecht, grew at its lowest rate in more than two years in February.
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Russia Blocks Security Council Statement on North Korea

Russia Wednesday blocked a draft U.S. statement in the U.N. Security Council condemning the latest North Korean missile test.

The statement said North Korea’s illegal ballistic missile activities are leading to a nuclear weapons delivery system and “greatly increasing tension in the region and beyond.”

The council also would have demanded that the North “immediately cease further actions in violation of the relevant Security Council resolutions and comply fully with its obligations under these resolutions.”

Members said they are concerned Pyongyang is diverting resources toward building missiles and bombs while the population has “great unmet needs.”

It is unclear why Russia blocked the statement, which is almost identical to a February council statement that Russia approved, condemning other ballistic missile tests.

But diplomats say Moscow objected to the removal of the words “through dialogue” in the latest statement when talking about a diplomatic solution in the North.

U.S. Secretary of State Rex Tillerson plans to preside over a Security Council meeting next week on North Korea. Secretary-General Antonio Guterres will brief the members.

U.S. Ambassador Nikki Haley warned North Korea Wednesday not to “pick a fight” with the United States.
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Sleepy Pakistani Village Rises as China’s Gateway to Middle East

Over the last six months, the skyline over the sleepy fishing city of Gwadar has been transformed by machines that dredge the Arabian Sea and cranes that set up shipping berths in what is projected to become Pakistan’s biggest international port.

Infrastructure developments have enabled the hammer-shaped Gwadar peninsula to emerge as the centerpiece of China’s determined effort to shorten its trade route to the Persian Gulf and obtain access to the rich oil reserves there.

A mini-“Chinatown” has appeared, with prefabricated living quarters, a canteen and a karaoke center. After hours, the workers have the grounds to play their favorite game, badminton.

A spokesman for the Chinese team in Gwadar said in an interview that his government had invited employment bids in China, then brought the workers here.

He proudly touted the successful test run conducted by China in November when it used Pakistan’s land route from Kashgar to Gwadar to transport a convoy of 60 containers for export to the Middle East and North Africa.

Prior to that, he said, China had sailed materials through the South China Sea and the Indian Ocean to reach Gwadar.

The Chinese propose to cut down that 12,000-kilometer sea route by about one-fourth once they adopt the land route from the northwestern province of Xinjiang to Gwadar.

So eager is China to save on distance, time and expense — and the challenge posed by the U.S. Navy in the South China Sea — that it has weathered Pakistan’s unstable law-and-order situation to build its economic corridor.

Small wonder that the Chinese spokesman omitted an incident — related by locals to VOA — that the test convoy came under fire in Hoshab, Baluchistan, despite protection from a special security force.

Since then, Pakistan has enhanced its 12,000-plus security force to protect the Chinese. That has turned Gwadar into a military zone, with strict checks of vehicles and ID cards, plus an encampment of intelligence officials.

Still, Baluch insurgents use attacks on “soft targets,” like laborers from other provinces, to drive away investors from the China Pakistan Economic Corridor. On April 5, as road workers from Sindh were gunned down in Kharan in targeted killings claimed by the Baluchistan Liberation Front, former army Col. Farooq Ahmed said suspicion fell on militants operating from Afghanistan.

The Chinese, for their part, have taken heart from the security provided by Islamabad to plan ahead. A prefabricated coal plant will be brought from China to Gwadar to fire up its energy needs. Moreover, China will finance Gwadar international airport, according to the spokesman.

Distances inside Pakistan have shortened as the Frontier Works Organization builds a 3,000-km network of roads funded by Chinese investment.

Symbolizing skepticism

Despite Pakistan’s ongoing military operation against the Taliban, sporadic terror attacks are the biggest hurdle to the country’s development. After 9/11, when Pakistan allied with the U.S. in combating terrorism in Afghanistan, militant organizations put down their roots and threatened the nation from inside.

As social indicators fell and Pakistan became one of the world’s most food-insecure nations, it opened its doors to China — one of America’s rivals — to help fight poverty, a key factor in fundamentalism and terrorism.

When U.S. envoy Nikki Haley recently spoke of nations that use their United Nations veto to stop non-state actors from being designated as terrorists, it was seen as a reference to China’s refusal to let Kashmiri militant Masood Azhar be so named. Pakistani analysts interpreted this to mean the U.S. would move closer to India, even while revisiting ties with Pakistan because of its key role in Afghanistan.

Now the road from Karachi to Gwadar is smooth and empty, with awe-inspiring, wind-carved hills and mysterious canyons that dip into golden sands that run for kilometers along the deep blue-green Arabian Sea. It has enabled locals to rediscover their country — even as some marvel at the speed of construction.

But in a country that suffers from grinding poverty, little industry and high unemployment, the benefits of China’s investment are still hard to sell to the average person.

Gwadar symbolizes the skepticism. A miniscule amount has been spent by Islamabad and Beijing on people’s welfare, including a vocational training center, a hospital and school. The peninsula’s natural beauty belies erratic electricity, scarce drinking water and lack of proper sewerage.

Gwadar Port Authority Chairman Dostain Jamaldini explains to delegations arriving daily from across the country that revenue generation is the key to uplifting the area.

He showed off a huge quadrangle in the center of Gwadar that “can even be seen on Google Earth.” There, he has recommended to Islamabad that a multipurpose lighthouse be constructed to guide incoming ships and generate revenue.

Until that happens, the fishermen who build wooden boats along Gwadar beach will likely lose their livelihood as their shanty homes are removed.

Already, the vacant plots in Gwadar’s Sinjhaar area overlooking the sea have been repossessed by the Pakistan Navy and earmarked for sale to military officials and politicians.

For the well-connected, a real estate boom is on the horizon. Trader Abbas Rashanwala said he waited for years for peace to come to Gwadar. Now his real estate business has taken off, with investors flocking in to buy land.

Many realtors are betting on Gwadar as on the stock market — making deals online or on the phone. Several sit in the Punjab, selling property they have never seen in Gwadar, all on speculation that prices will soon skyrocket.

Meanwhile, China’s investment in Gwadar is helping control maritime crime. Officials tell how traffickers from Africa and the Middle East used to dock on the beach at night to swap slaves for narcotics.

In February, 36 nations, including the U.S. and Russia, participated in the Pakistan Navy’s multinational patrolling of the Arabian Sea in a global recognition of China’s role in making the waterways safer.

Still, China’s emerging role in Pakistan has raised many questions. The most prominent criticism is that China will become Pakistan’s “East India Company” — a metaphor for the British empire’s plunder of India.

Notwithstanding the doomsayers, there also is a readiness to accept that development and peace are inextricably linked to Pakistan’s future.
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Brazil Agrees to Lower Police Retirement Age After Violent Protest

The Brazilian government on Wednesday agreed to lower the minimum retirement age for police officers in its pension reform proposal, a day after members of their unions stormed Congress to protest the controversial bill.

In the reform draft, congressman Arthur Maia, a government ally in charge of making changes to the original proposal, reduced the minimum retirement age for police to 55 from 60.

After he revealed the details of his proposal on Tuesday, hundreds of police unions dressed in black shirts broke the windows of the main entrance of the legislature in Brasilia and clashed with congressional guards.

The violent clash, during which the guards used pepper spray and stun grenades to disperse the protesters, illustrated the unpopularity of the reform proposal that is central to President Michel Temer’s austerity agenda.

The protest was the latest in what is expected to be months of street demonstrations by workers’ unions even after Temer has repeatedly watered down the proposal, which aims to reduce some of the world’s most generous pension benefits.

Maia is scheduled to read his full reform draft at a special lower house commission later on Wednesday. The initial vote of the proposal, which is a constitutional amendment, has been set for May 2 at the commission.

As it is a constitutional amendment, the measure has to be approved by a three-fifths majority in separate votes by both houses of Congress.

 
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Turkey Defends Against Referendum Fraud Allegations

Turkey’s prime minister hit back Tuesday at European monitors who said more than 2 million votes could have been manipulated in Sunday’s closely contested referendum on expanding presidential powers.

Binali Yildirim, responding to criticism from the Council of Europe’s observer mission, said debate over the outcome of the referendum was “over,” and that “the people’s will had been reflected at the ballot box.”

He spoke in response to calls from the council to investigate alleged vote irregularities that several official observers said allowed as many as 2.5 million uncertified ballots to be counted.

Alev Korun, an Austrian member of the council’s observer mission, said the number of uncertified ballots would almost double the margin of President Recep Tayyip Erdogan’s victory — an electoral win that vastly broadens the power of the presidency.

Another observer, German lawmaker Andrej Hunko, told The New York Times “it seems credible that 2.5 million were manipulated, but we are not 100 percent sure.”

Separately, European monitors alleged that those who campaigned against Erdogan’s push for expanded powers faced numerous obstacles, including a lack of freedom of expression, intimidation and access to the media. The Organization for Security and Cooperation in Europe also alleged misuse of administrative resources by Erdogan ahead of Sunday’s vote.

Dramatic shift signaled

Sunday’s vote created a powerful executive presidency that largely sidelines the Turkish parliament and abolishes the Cabinet and the office of prime minister. Ministers will be directly appointed by the president, who also will set the national budget. The president also will appoint judges to the high court and the constitutional court.

The constitutional amendments also end the official neutrality of the presidency, allowing a president to lead a political party and declare states of emergency.

Critics argued the reforms were tantamount to creating an elected dictatorship, while Erdogan and his supporters said they would create a fast and efficient system of government better able to confront terrorism and a sluggish economy.

Unstamped ballots

Opposition complaints and calls for a new vote centered on a decision by electoral officials to use and tally ballots that did not have an official stamp, despite a 2010 law that requires such official validation. Additional complaints included the barring of nearly 200 opposition members from serving as election monitors and the temporary detention of other election observers.

On Monday, the head of Turkey’s electoral board, Sadi Guven, strongly defended his decision to allow the controversial ballots, citing high demand for ballots and saying similar procedures had been followed in the past.

“This is not some move we’ve done for the first time,” said Guven, speaking to reporters Monday in Ankara. “Before our administration took over, there had been many decisions approving the validity of unstamped ballots.”

Trump congratulates Erdogan

U.S. President Donald Trump on Monday congratulated Erdogan on his referendum victory.

The White House said in a statement the two leaders spoke by phone, with their conversation also including the need to hold Syrian President Bashar al-Assad accountable for a recent chemical attack. It further said the two leaders discussed the fight against Islamic State and “the need to cooperate against all groups that use terrorism to achieve their ends.”
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Trump Executive Order Makes It Harder to Hire Foreign Workers

U.S. President Donald Trump on Tuesday signed an executive order aimed at making it harder for companies to hire temporary foreign workers.

The order, called “Buy American — Hire American,” will take initial steps to reform the H1-B visa program.

H1-Bs allow employers — mostly high-tech firms — to hire skilled foreign workers to work in the U.S. for three years. There are 85,000 slots available each year, 65,000 for applicants with bachelor’s degrees and 20,000 for those with master’s degrees or higher.

“We are going to use a tool you all know very well. It’s called the sledgehammer,” Trump said Tuesday during a speech at Snap-on Tools, a company in Kenosha, Wisconsin.

The administration will require companies to demonstrate that the visas are going only to the most highly skilled workers in their fields.

“They [H1-Bs] should be given to the most skilled and highest-paid applicants and not be used to replace Americans,” Trump said.

WATCH: H1-B Visas Let US Firms Hire Foreigners for Specialized Jobs

Open to abuse

The administration says the visas, which can be renewed once, have contributed to a slide in American wages; 80 percent of H1-B visa holders are paid less than the median wage in their fields.

Howard University political science professor Ron Hira said the Trump administration is right: “The laws are loose, and so what happens is it’s become a way for employers to bring in cheaper, indentured workers as opposed to filling those skills gaps. As a result, the program is oversubscribed, and it’s actually undercutting Americans.”

When the application season opened for H1-Bs this month, federal offices were quickly flooded. As in recent years, there were so many applications that the U.S. government stopped accepting them within a week. Visa winners will be chosen by a computer-generated lottery.

Hira also said the intent of the program is good in serving as a guest worker program for when there are shortages of American workers. What got in the way? Politics.

Companies are making so much money, he said, that they are able to influence Congress to prevent changes in the H1-B program. And it’s all legal.

Fixing H1-Bs

Hira said that if the sledgehammer seemed to be velvet-coated, that’s because the executive order is not really intended to change policy so much as to guide policy changes. Federal agencies will have to implement it.

“The idea behind the executive order is to make it merit-based, that the really highly skilled people get preference over the cheap labor that goes on,” Hira said.

Overwhelmingly, India has been the biggest recipient of H1-B visas. The Department of Homeland Security reports that 71 percent of H1-Bs went to Indians in 2015. China was a distant second with 10 percent of the visas.

India’s success is attributed to its huge outsourcing firms that submit thousands of applications every year, increasing their chances of winning the visa lottery.  

Outsourcing firms, which supply services to other companies, are controversial because they are not subject to a federal requirement that they not displace American workers if they pay the H1-Bs at least $60,000 a year.

Hira said the new policy might help high-tech American companies at the expense of the outsourcing firms that abuse the system.

But “expect the Indian government to lobby against the changes,” he predicted.

The executive order also called on all federal agencies to buy American. It established a 220-day review on waivers and exemptions to government “Buy American” rules.

VOA’s Mil Arcega contributed to this report.
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H1-B Visas Let US Firms Hire Foreigners for Specialized Jobs

Not a US citizen? Got skills? Need work? This might be the visa for you.
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Silicon Valley Startups Turn to Chinese Backers for Funds

When Mark Pavlyukovskyy, founder of a do-it-yourself computer kit maker, was looking for investors last year, he wanted someone who knew the Chinese market.

Turns out, Pavlyukovskyy didn’t have to go to Beijing or Shanghai. Chinese venture capitalists are everywhere in Silicon Valley.

Last year, Pavlyukovskyy, a Ukrainian-born American entrepreneur working in San Francisco, raised $2.1 million from nine investors, including a Chinese firm based in the Valley.

“We’re looking not just for financial capital, but interpersonal capital with expertise and knowledge of the education market in China,” said Pavlyukovskyy. His company, Piper, sells a $299 augmented reality computer kit that children assemble themselves. Now, Piper is in schools in Hong Kong. Over 150,000 kits have been distributed around the world.

For the past decade, Silicon Valley money flowed to China as the communist country opened its markets and companies sought to expand there. That cross-border investing reversed as Chinese companies started to look outside their borders for investment opportunities. While Chinese investors have made their impact felt in the U.S. real estate, energy and transportation sectors, it was only in recent years they turned to tech.

Chasing U.S. innovation

Now, Chinese investors are pouring money into Silicon Valley deals, where it might take longer to see a return on an investment than in commercial real estate but where the potential to strike it big is higher.

“This is the very beginning,” said David Cao, who came from Singapore as a programmer before founding F50, a full-service investment firm, in 2014.

Fueling the Chinese capital is a perception that the majority of innovation is still coming out of the U.S., and that China is playing catch-up, said Chris Evdemon, who in 2014 opened Sinovation, the U.S. arm of Chuangxin, one of China’s leading early-stage venture firms. There are now 38 startups in his portfolio, which includes firms specializing in internet-of-things, robotics and education technology.

“We thought we should put some capital to work and see if we can be a great go-to market,” said Evdemon.

Chinese investors, particularly traditional media groups, are interested in firms specializing in virtual reality and augmented reality technologies, which might enhance digital entertainment. Other areas of interest for Chinese backers include robotics, artificial intelligence and technologies that focus on the financial, health and education markets. There are now more than 30 Chinese incubators in Silicon Valley.

Strategic U.S.-developed tech

But this wave of Chinese investment has called into question whether advanced technologies that are seen as critical to U.S. strategic interests are, instead, going to a competitor. A recent Pentagon report raised concerns about whether the Chinese government and Chinese investors in Silicon Valley were gaining access to key technologies through these investments.

Those concerns did not gain much attention at a recent cross-border investment summit held by F50 in Menlo Park. Instead, investors talked about how Chinese investors have become more savvy, with an emphasis on working with Silicon Valley companies to test their ideas in the U.S. first, before thinking about the Chinese market.

“I don’t see any barriers anymore between the two ecosystems,” said Evdemon. “I’m enjoying seeing wall gardens disappear.”
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US Intercepts Two Russian Bombers Off Alaska’s Coast

The U.S. military says it intercepted two Russian bombers in international airspace off Alaska’s coast.

Navy Commander Gary Ross, a Pentagon spokesman, said a pair of F-22 Raptor aircraft intercepted the Russian TU-95 Bear bombers on Monday.

Ross said the intercept was “safe and professional.”

North American Aerospace Defense Command monitors air approaches to North America and defends the airspace.

Fox News said Tuesday that the Russian planes flew within 100 miles (160 kilometers) of Alaska’s Kodiak Island.

It said the American jets escorted the Russian bombers for 12 minutes. The bombers then flew back to eastern Russia.
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Migrants Flee Libya as Weather Warms and Libyan Patrols Loom

Warm weather and calm seas usually spur smugglers to send migrants across the Mediterranean come spring. But aid groups say another timetable might be behind a weekend spike: the looming start of beefed-up Libyan coast guard patrols designed to prevent migrants from reaching Europe.

Over Easter weekend, rescue ships plucked some 8,360 people from 55 different rubber dinghies and wooden boats off Libya’s coast, Italy’s coast guard said. Thirteen bodies were also recovered.

While such numbers are not unheard-of for this time of year, they come as Italy is preparing to deliver patrol boats to Libya as part of a new European Union-blessed migration deal.

Italy and Libya inked a deal in February calling for Italy to train Libyan coast guard officers and to provide them with a dozen ships to patrol the country’s lawless coasts. EU leaders hailed the accord as a new commitment to save lives and stem the flow of migrants to Europe, where the refugee influx has become a pressing political issue.

Aid groups, however, have criticized it as hypocritical and cruel, arguing that migrants who have already endured grave human rights abuses in Libya will face renewed violence, torture, sexual assault and other injustices if they are returned by the Libyan coast guard. Doctors Without Borders called it “delusional” while even the Vatican’s own Caritas charity said it was worrisome.

International Organization of Migration spokesman Flavio Di Giacomo said improved weather conditions certainly are fueling renewed flows in recent days. But he said smugglers are also telling their customers, “`You have to hurry up and leave the country right now because otherwise in a couple of months you will be rescued by the Libyan coast guard and you will be sent back,’ which is the last things that migrants would like to do.”

The United Nations refugee agency also cited the pending arrival of Italian patrol boats as a possible cause for the weekend’s high numbers, although spokeswoman Barbara Molinario said it was too early in the season to identify trends.

“For now it’s premature, even if 8,300 in 55 operations is a high number,” Molinario said.

Overall, Some 35,700 people have been rescued in the central Mediterranean route in 2017, up from 24,974 in 2016, the United Nations High Commissioner for Refugees said. Molinario noted that the numbers are constantly in flux and a week or two of poor weather could alter the year-on comparison. The IOM reports some 900 people are known to have died so far this year.

Some 800 people rescued over the weekend arrived in Sardinia on Tuesday, where officials struggled to find accommodation for them after some 900 were brought to the island by rescue boats last month. They hailed from Syria, Egypt and Libya, as well as more than a dozen other African countries.

The entry into force of the new Libyan patrols could heighten tensions that have already flared between the European Union and humanitarian organizations, which have assumed increasing role in rescuing migrants as their vessels tend to patrol closer to Libya’s territorial waters, and their numbers have skyrocketed in the last two years.

The European border agency Frontex has said these humanitarian aid ships in 2016 were responsible for 40 percent of all rescues, up from 5 percent a year earlier. Frontex has essentially accused them of encouraging smugglers to set migrants off in increasing numbers and on increasingly flimsy vessels, since rescue is so close at hand.

“While there is no question that saving lives is an obligation of whoever operates at sea … it seems the Libyan smugglers are taking full advantage of this fact, and they do so with impunity,” Frontex spokeswoman Izabella Cooper said.

The aid groups have denied being in cahoots with smugglers, but Catania’s chief prosecutor, Carmelo Zuccaro, testified to parliament last month about the phenomenon, in particular the funding behind the aid groups’ operations.

Cooper says there are both “push and pull” factors at play in the Libyan migration saga, with wars, poverty and famine pushing the migrants to Libya and the relative ease with which they then can reach Europe pulling them to make the risky crossing.

But behind it all is money: Europol reported that smugglers made some 5-6 billion euros in 2015, a peak year for arrivals in the EU, making it one of the most profitable activities for organized criminals in Europe. On the Libyan end, an EU military task force reported in December that Libyan coastal communities earned around 270-325 million euros a year from smuggling operations.

 Trisha Thomas in Rome contributed to this report.
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Trump Administration Seeks Tougher Stance On Buy & Hire American

The Trump Administration says it is time for tougher enforcement of rules governing hiring certain foreign workers in the United States, and to review laws requiring U.S. government agencies to use American-made products. The president is scheduled to sign an executive order regarding “Buy American/Hire American” rules on Tuesday.

In a briefing for journalists, senior administration officials said lax enforcement and numerous legal loopholes mean American workers and companies lose jobs and business to foreign competition, which hurts the U.S. economy.

Government agencies are being directed to review their procurement practices and require that exceptions to the “buy American” rules be approved by the head of the agency.

Officials also said government procurement portions of existing trade agreements will be reviewed to see if U.S. companies get the same chance to sell products to the governments of our trading partners that foreign firms get in Washington.

Another review is aimed at rules governing visas issued to foreigners with certain skills, called the “H-1-B visa” program. The program is supposed to bring workers with skills that are scarce in the United States into the country. But Trump Administration officials say they are concerned that companies are hiring foreigners who do the same work as Americans at lower wages.

Government agencies are being directed to do “top to bottom” reviews of these rules and laws, and report problems and recommendations that may bring changes to laws and rules.
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British Prime Minister Calls for Early Election

British Prime Minister Theresa May announced Tuesday she will seek an early election on June 8.

Three weeks after officially launching the process for Britain to exit the European Union, May said opposition parties are threatening to derail the process and that parliament is not coming together in the same way as the nation.

“Division in Westminster will risk our ability to make a success of Brexit and it will cause damaging uncertainty and instability to the country, so we need a general election and we need one now,” May said.

The House of Commons must approve the call for new elections.

Jeremy Corbyn, leader of the main opposition Labour Party, welcomed May’s announcement, saying it will “give the British people the chance to vote for a government that will put the interests of the majority first.”
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Trump Congratulates Erdogan on Turkey Referendum as Opposition Seeks Revote

U.S. President Donald Trump has congratulated Turkish President Recep Tayyip Erdogan on his “referendum victory,” in a narrow vote that would create a powerful executive presidency from the current parliamentary system.

The White House said in a statement the two leaders spoke by phone, with their conversation also including the need to hold Syrian President Bashar al-Assad accountable for a recent chemical attack, the ongoing fight against Islamic State and “the need to cooperate against all groups that use terrorism to achieve their ends.”

Erdogan’s opponents are seeking a revote of Sunday’s referendum, and international monitors have questioned the fairness of the vote, saying it was contested on an uneven playing field.

At a news conference Monday in Ankara, monitors from the Organization for Security and Cooperation in Europe said the “No” campaign faced numerous obstacles including a lack of freedom of expression, intimidation and access to the media. The OSCE also alleged misuse of administrative resources by Erdogan.

 

The controversial decision to allow the use of ballots that did not have an official stamp was also criticized. “The Supreme Election Board issued instructions late in the day, that significantly changed, the validity criteria, undermining an important safeguard and contradicting the law,“ observed Cezar Florin Preda of the monitoring group at the Ankara press conference

 

Turkey’s Foreign Ministry released a statement saying it was “saddened” by the OSCE’s finding that the referendum fell short of international standards. The ministry called it “unacceptable” and accused the OSCE of political bias.

 

Under Turkey’s 2010 electoral law, all ballots require an official stamp as a measure aimed at preventing vote stuffing. The main opposition CHP alleges that as many as one-and-a-half million unstamped ballots could have been used, more than the winning margin in the referendum.

The CHP is now demanding the referendum be held again. “The only decision that will end debate about the legitimacy, and ease the people’s legal concerns is the annulment of this election,” declared Bulent Tezcan CHP deputy head, speaking at a press conference Monday.

Prime Minister Binali Yildirim rejected opposition complaints in remarks to a group of legislators Tuesday. He said the opposition “should not speak after the people have spoken.”

Protests were held in several locations across Istanbul and in the capital, Ankara, over the handling of the vote; similar demonstrations were reported in other cities.

The only legal redress the CHP has to overturn the vote is with Supreme Election Board, which made the decision to use the unstamped ballots.

 

The head of the board, Sadi Guven, strongly defended his decision to allow the controversial ballots, citing high demand for ballots and saying similar procedures had been followed in the past.

“This is not some move we’ve done for the first time,” said Guven, speaking to reporters Monday in Ankara. “Before our administration took over, there had been many decisions approving the validity of unstamped ballots.”

 

Critics point out the previous use of unstamped ballots was before the introduction of the electoral law banning the practice. Guven said he did not know how many of the ballots were used, and admitted he made the decision after consulting with the ruling AK Party.

 

Many of the ballots are suspected of being used in the predominantly Kurdish southeast where strict security measures are in force due to an ongoing fight against Kurdish insurgent group the PKK. “No” campaigners in the region, said its observers, were prevented from monitoring many ballot stations. The OSCE also said its monitors too faced restrictions.

 

While the OSCE refused to be drawn in on whether the shortcomings and difficulties it highlighted were enough to ultimately affect the outcome of the vote, its assessment will likely embolden the opposition and add to growing international concern.

“The European politician will refer to the OSCE; even Americans have said it was going to wait for the OSCE report [before commenting on the referendum result], warns political columnist Semih Idiz of Al Monitor website. “It’s a complication for Erdogan but he will try and turn it to his advantage, by saying the West is up to its old tricks again.” Throughout the campaign, Erdogan played the nationalist card, accusing Western countries of conspiring against him and Turkey. Erdogan described the referendum as a victory against the crusaders.

Europe has so far avoided directly addressing the controversy, choosing to look beyond the result with calls on Erdogan to reach out to his opponents to ease the political polarization. The U.S. State Department called on Turkey to protect basic rights and freedoms as authorities work to resolve the contested results.
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Experts Say More Retail Store Closings in Future

Retail sales were weaker than expected in both March and February, after government data showed the worst two-month performance for the retail sector in two years. US Census data suggest the weakness was the result of lower fuel prices and reduced auto profits. But retail experts say the industry itself is changing, driven by technological and demographic change.
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Turkey’s President Rejects Criticism from International Monitors Over Referendum

Turkey’s president has rejected international monitors’ criticism of the referendum that approved expanded presidential powers Sunday, saying the vote was the “most democratic election” seen in any Western country.

President Recep Tayyip Erdogan told supporters Monday outside his palace in Ankara that international election monitors should “know their place.”

He said Turkey will ignore findings by monitors from the Organization for Security and Cooperation in Europe, calling the reports “politically motivated.”

Fairness questioned

The monitors have questioned the fairness of Sunday’s referendum, saying it was contested on an uneven playing field. At a news conference in Ankara, monitors from the OSCE said the “No” campaign faced numerous obstacles, including a lack of freedom of expression, intimidation and access to the media.

They also questioned the controversial decision by Turkey’s Supreme Court to allow the use of ballots that did not have an official stamp on them. The main opposition CHP alleges that as many as one-and-a-half million unstamped ballots could have been used, more than the winning margin in the referendum.

Opposition calls for new vote

Bulent Tezcan, deputy head of the CHP demanded the referendum be reheld, saying that would be the “only decision that will end the debate about the legitimacy” and ease people’s concerns.

Unofficial election results from Turkey’s electoral board said the “yes” vote took more than 51 percent while the “no” vote took just under 49 percent. Official tallies were expected to be released within 12 days of the vote.

The approval means the Turkish parliament will be largely sidelined, the prime minister and Cabinet posts will be abolished, and ministers will be directly appointed by the president and accountable to him. The president also will set the budget.

The constitutional amendments also end the official neutrality of the president, allowing him to lead a political party. The president will have the power to dissolve parliament and declare a state of emergency, while enjoying enhanced powers to appoint judges to the high court and constitutional court.

A divided nation

The referendum has divided the nation, with both supporters and opponents arguing that the future of the country is at stake.

Erdogan insists the reforms will create a fast and efficient system of governance that will allow Turkey to face the challenges of fighting terror and the slowing economy. Critics argue the constitutional reforms will usher in an elected dictatorship.

Erdogan spoke by telephone Monday with U.S. President Donald Trump, who according to a White House statement congratulated the Turkish leader on the referendum win.  The statement further said the two men talked about the situation in Syria, both the fight against Islamic State and holding Syrian President Bashar al-Assad accountable for a chemical attack earlier this month.
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US Notes Concerns of European Monitors in Turkey Referendum

The U.S. State Department said Monday it had taken note of concerns by European monitors of Turkey’s referendum and looked forward to a final report, suggesting it will withhold comment until a full assessment was completed.

An initial assessment by the Organization of Security and Cooperation in Europe (OSCE) said Sunday’s referendum, which granted Turkish President Recep Tayyip Erdogan sweeping new powers, did not meet democratic norms.

“We look forward to OSCE/ODIHR’s final report, which we understand will take several weeks,” acting spokesman Mark Toner said in a statement.
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‘The National’ Newspaper of Abu Dhabi Sees Layoffs after Sale

A state-backed newspaper in the United Arab Emirates that was bought by an Emirati who oversees the English soccer club Manchester City is undergoing layoffs, those with knowledge of the firings said Monday.

They told The Associated Press that staffers at The National were informed Sunday they had been let go. They spoke to the AP on condition of anonymity for fear of repercussions.

 

It wasn’t clear how wide the layoffs were or what specific plans The National’s new owner had for the daily newspaper. Repeated calls to the newspaper rang unanswered Monday.

 

The layoffs come after months of turmoil at The National, which was founded in 2008 and staffed with top writers and editors from Western newspapers. Its owner, the state-backed firm Abu Dhabi Media, hoped it would become the Mideast’s standard for independent, hard-nosed newspapering.

 

But while the paper broke local stories on skyscraper fire safety and other issues, it largely stayed away from controversial topics in a country with strict laws governing speech.

 

International Media Investments, a subsidiary of Abu Dhabi Media Investment Corp. owned by Sheikh Mansour bin Zayed Al Nahyan of Manchester City, bought The National in November from Abu Dhabi Media. Sheikh Mansour’s media firm has a joint venture with Britain-based Sky to run the Arab satellite news channel Sky News Arabia.

 

In a statement, International Media Investments said: “The National is putting together its team, made of existing and new talent,” and will undergo “a digital transformation while retaining its print product.” It answered no questions from the AP about the layoffs.

 

Although the newspaper sale has yet to finalize, staffers had to reapply for jobs at the paper. All this comes as low global oil prices have pinched the economy of the United Arab Emirates, a federation of seven sheikhdoms on the Arabian Peninsula.

 

Sheikh Mansour is a member of the ruling family of Abu Dhabi, the UAE’s oil-rich capital. He also serves as a deputy prime minister and minister of presidential affairs.
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The Long, Rough Ride Ahead for ‘Made in America’

Mini motorcycle and go-kart maker Monster Moto made a big bet on U.S. manufacturing by moving assembly to this Louisiana town in 2016 from China.

But it will be a long ride before it can stamp its products “Made in USA.”

The loss of nearly one out four U.S. factories in the last two decades means parts for its bike frames and engines must be purchased in China, where the manufacturing supply chain moved years ago.

“There’s just no way to source parts in America right now,” said Monster Moto Chief Executive Alex Keechle during a tour of the company’s assembly plant. “But by planting the flag here, we believe suppliers will follow.”

Monster Moto’s experience is an example of the obstacles American companies face as they, along with President Donald Trump, try to rebuild American manufacturing. U.S. automakers and their suppliers, for example, have already invested billions in plants abroad and would face an expensive and time-consuming transition to buy thousands of American-made parts if President Trump’s proposed “border tax” on imported goods were to become law.

When companies reshore assembly to U.S. soil – in Monster Moto’s case that took two years to find a location and negotiate support from local and state officials – they are betting their demand will create a local supply chain that currently does not exist.

For now, finding U.S.-based suppliers “remains one of the top challenges across our supplier base,” said Cindi Marsiglio, Wal-Mart Stores Inc.’s vice president for U.S. manufacturing and sourcing. Wal-Mart partnered with Monster Moto and several other U.S. companies in a drive to increase spending on American-made goods by $250 billion by 2023 in response to consumer demand for American-made goods.

Their experience has shown Americans’ patriotic shopping habits have limits, namely when it comes to price.

Take Monster Moto’s bikes, which sell for between $249 to $749. Keechle, the CEO, says he can’t raise those prices for fear his price sensitive prospective customers will turn to less expensive rivals made in China.

“Consumers won’t give you a free pass just because you put ‘Made in USA’ on the box,” Keechle says. “You have to remain price competitive.”

Keeping a sharp eye on labor costs in their factory is one thing these U.S. Manufactures can control. They see replacing primarily lower-skilled workers on the assembly line with robots on American factory floors as the only way to produce here in a financially viable, cost-competitive way. It’s a trend that runs against the narrative candidate Donald Trump used to win the U.S. presidency.

 

Since taking office, Trump has continued promises to resurrect U.S. manufacturing’s bygone glory days and bring back millions of jobs. On March 31, Trump directed his administration to clamp down on countries that abuse trade rules in a bid to end to the “theft of American prosperity.”

But it’s more complicated on the ground for companies like Monster Moto.

“It’s almost as if people think you can just unplug manufacturing in one part of the world and plug it in to the U.S. and everything’s going to be fine,” said David Abney, Chief Executive Officer of package delivery company United Parcel Service Inc., which helped Monster Moto reconfigure its supply chain to bring its Chinese-made parts to Ruston.

“It’s not something that happens overnight,” he said.

A White House official said that the Trump administration’s efforts to encourage manufacturers to reshore production will be focused on cutting regulations and programs to provide new skills to manufacturing workers.

“We recognize that the manufacturing jobs that come back to America might not all look like the ones that left,” a White House official said, “and we are taking steps to ensure that the American workforce is ready for that.”

Making robots great again

In Monster Moto’s cavernous warehouse in Ruston, boxes of imported parts that are delivered at one end then become bikes on a short but industrious assembly line of a few dozen workers.

A solitary, long-bearded worker by the name of Billy Mahaffey fires up the bikes to test their engine and brakes before a small group of workers puts them in boxes declaring: “Assembled in the USA.”

Helped by that label, Monster Moto has experienced a recent boom in demand from major customers that include Wal-Mart. The company expects to double production to 80,000 units and increase its assembly workers — who make $13 to $15 an hour — to 100 from around 40 in 2017.

The most likely components Monster Moto could produce in America first are black, welded-metal frames for bikes and go-karts, but they would have to automate production because human welders would be too expensive.

 

“We can’t just blow up our cost structure,” said Monster Moto President Rick Sukkar. “The only way to make it work in America is with robotics.”

The same principle applies for much larger manufacturers, such as automotive supplier Delphi Automotive PLC’s.

Chief Financial Officer Joe Massaro told analysts in February that 90 percent of the company’s hourly workforce is in “best-cost countries.”

When asked about shifting production to the United States from Mexico, Massaro said depending on what happens to trade rules “it would have to be much more of the sort of the automated type manufacturing operations just given… the labor differential there.”

That trend is already showing up in data compiled by Economic Policy Institute, a Washington-based think tank.

According to senior economist Rob Scott, not only did America lose 85,000 factories, or 23.5 percent of the total, from 1997 to 2014, but the average number of workers in a U.S. factory declined 14 percent to 44 in 2014 from 1997. According to Scott, much of the decline in workers was due to automation.

“We’re going to see more automation in this country because it makes good sense economically for every company,” said Hal Sirkin, a managing director at the Boston Consulting Group. “You can spend a lot of time bemoaning it, but that’s not going to change.”

Manufacturers say automated production requires fewer, but more skilled workers such as robot programmers and operators.

The National Association of Manufacturers (NAM) estimates because of the “skills gap” there are 350,000 unfilled manufacturing jobs today in a sector that employs over 12 million people.

In Ruston, Mayor Ronny Walker bet on Monster Moto by guaranteeing the company’s lease because he wants to diversify the city’s economy, and envisions suppliers setting up alongside Monster Moto’s assembly plant.

“Could it take a long time to bring manufacturing back here?

Sure,” he says. “But you have to start somewhere.”
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