US General: Russia Trying to ‘Undercut’ Progress in Afghanistan

Russia is not giving up on efforts to destabilize Afghanistan and drive divisions between the United States and its coalition partners, according to the outgoing commander of U.S. forces in the country.

The commander of U.S. Forces-Afghanistan and of Operation Resolute Support, General John Nicholson, is scheduled to step down Sunday after serving in the position for more than two years.

But before relinquishing command, he took time to cast doubts on Russia’s intentions in the region, despite recent overtures from Moscow to help the Taliban reconcile with the Afghan government.

“We know that Russia is attempting to undercut our military gains and years of military progress in Afghanistan, and make partners question Afghanistan’s stability,” Nicholson said in an email to Voice of America, following on questions from his August 22 briefing with Pentagon reporters.

“It is no secret that Russia seeks any opportunity it can find to drive a wedge between the United States and our Central Asian partners, including Afghanistan,” Nicholson added.

Aid to Taliban

U.S. and Afghan officials have previously accused Russia of meddling in Afghanistan by providing Taliban insurgents with both weapons and training.

Moscow has rejected the allegations, saying it has only political ties with the Taliban. Still, Russia has faced growing suspicion from the U.S. and its allies, who say the Kremlin has been increasingly working to expand its influence in Afghanistan and beyond.

Most recently, the U.S. and Russia have been competing over efforts to kick-start peace negotiations between the Taliban and the U.S.-backed Afghan government.

Russia was set to host both parties, along with the U.S. and other countries, for talks starting September 4, but was forced to postpone after Afghan President Ashraf Ghani declined the invitation.

The U.S. also has been hoping for talks between the government and the Taliban.

“We talk about an Afghan-led, Afghan-owned reconciliation process,” U.S. Defense Secretary James Mattis said during a briefing with reporters this past week. “We believe that the best way to get there is to ensure Taliban recognizes they can’t win on the battlefield, they must negotiate.”

But while U.S. officials have touted what they see are signs of progress, including increased support for a peace process from various sectors of the Afghan population, the government’s recent cease-fire offer to the Taliban appears to have fallen on deaf ears.

Meanwhile, U.S. officials have been angered by what they see as Russian efforts to derail peace and stabilization efforts with disinformation campaigns.

​Charges repeated

Just over a week ago, Russian Foreign Ministry spokeswoman Maria Zakharova raised concerns about “unidentified” helicopters flying missions in support of fighters for the Islamic State terror group, also known as IS-Khorasan or IS-K, in the northern Sar-e-Pul province, suggesting the U.S. and NATO might be responsible.

“Who is arming the terrorists and secretly creating their bases?” she asked. “Why is this happening if NATO command is effectively in control of Afghanistan’s airspace?”

Pentagon officials rejected the suggestion of U.S. or NATO involvement as “completely untrue,” noting it was not the first time Moscow had levied such charges.

“As they [Russia] perpetuate false narratives about ISIS-K, the United States and the Afghan Special Security Forces eliminated the Jowzjan ISIS-K enclave and are killing ISIS-K leaders and fighters in Nangarhar,” Nicholson said in his statement to VOA.

Still, the outgoing commander said he held out hope Russia could play a constructive role. 

“We have shared interests with Russia in Afghanistan — peace, counterterrorism and counternarcotics,” Nicholson said. “We hope to see Russia support Afghanistan and the NATO-led coalition in these areas going forward.”

VOA’s Ayaz Gul contributed to this report.

Fear of More Anti-Migrant Violence Has German City on Edge

No one knows what will happen in the next 48 hours in Chemnitz, the Saxon town which this week saw the worst rioting in Germany in three decades, with mobs of far-right supporters and soccer hooligans overwhelming local police and beating anyone in the streets who appeared to be a foreigner while flashing illegal Nazi salutes.

Federal authorities and neighboring German states have sent police reinforcements to Saxony to confront any repeat of the violence seen on Monday, when more than 6,000 anti-migrant protesters rallied to vent their fury at the stabbing of a 35-year-old German man, Daniel Hillig, during a brawl with a pair of asylum-seekers from Syria and Iraq.

The stabbing came at the end of a street festival celebrating the 875th anniversary of Chemnitz, a declining industrial town of drab Communist-era apartment blocks with a population of 250,000.

With four anti-migrant rallies scheduled for Saturday alone — one organized by Alternative for Germany (AfD), the far-right party that last year became the largest opposition faction in the German parliament, the Bundestag, as well as counterprotests planned by left wing groups — police are preparing for the worst.

So, too, are many store owners and the 20,000 migrants who live in Chemnitz, nestled in the foothills of the Ore Mountains, which during the Communist era was known as Karl Marx Stadt. Migrants contacted on social media say they fear for the worst.

“I won’t be going outside today [Saturday],” said Farid, a 46-year-old Moroccan who asked that his full name not be published. “And neither will my wife nor daughters,” he said.

“Will we ever be safe again?” he asked. Like many other migrants, what shocked him the most was spotting neighbors among the rioters screaming for foreigners to go home. “I wasn’t born here but my two daughters were — this is their home,” he added. He says the rioting this week, the pitched street battles between overwhelmed local police and the protesters and the hunting down of foreigners for beatings, have convinced him that a tipping point may have been reached in Chemnitz and Saxony — and “possibly in Germany as well.”

Simmering tensions

He’s not alone in harboring such a fear.

Alara, a 36-year-old Turkish woman, says she, too, has been shocked by the participation in the violent anti-migrant protests of middle-class German “neighbors and co-workers.” “I thought they were my friends,” she laments.

In the middle of the week, a shocked German Chancellor Angela Merkel expressed her fear that far right rioting, along with Hitler salutes that are banned in the country, and the confidence protesters demonstrated in flaunting their affection for a dark German past, represented a threat to the very underpinnings of the post-Second World War state.

“There is video footage of chases, rioting and hatred on the street. And that has nothing to do with our constitutional state,” she said. Tensions over migrants have roiled German politics since 2015, when Merkel announced an open-door policy for war refugees from the Middle East that saw more than 1.2 million admitted.  

Merkel’s controversial immigration policy fueled the rise of the AfD. The group’s electoral performance in last year’s elections, in which it seized nearly 100 seats in the Bundestag, marked a startling new phase in the party’s progress from the fringe of German politics closer to the center of power in Berlin. For far right opponents, the AfD’s election success, built on menacing social media propaganda playing on fears of Islam and Muslim criminality and on foreigners in general, represented a door opening on a German past they thought long buried.

The anti-migrant violence this week in Chemnitz — and the threat of more to come — is prompting questions about whether that door is opening even wider in Germany.

Well organized

Aside from the participation of “ordinary” locals, officials acknowledge they also were taken aback by the speed with which the anti-migrant protesters were reinforced, as well as the level of organization and coordination displayed by a variety of far right groups, including AfD, Pegida and the National Democratic Party. These groups glorify the Third Reich and have averted efforts by the government to ban it.

Saxony’s interior minister, Roland Woller, told media this week that known soccer hooligan groups with strong ties to the far right — and some with solidarity links to Russian fan-clubs and martial arts groups —  helped to mobilize people from across Germany and transport them to join the street battle.

German officials blame orchestrated “fake news” peddled by far right groups on social media sites for helping to stoke the rioting that broke out Monday. “We have to acknowledge that mobilization on the internet was stronger than in the past,” said Michael Kretschmer, the state prime minister of Saxony. The trouble was fueled partially by false claims that the stabbed man had intervened to protect a woman from being raped by asylum-seekers.

The showdown in Chemnitz could continue well into next week. A concert is planned for Monday by a left-wing band. But it is the planned Saturday night marches that now have the focus. In a statement announcing its march, the AfD called Daniel Hillig “the next, avoidable victim of an irresponsible government policy that accepts the multiple deaths of natives with icy coldness.”

“The cartel media have tried to make Chemnitz, the city of the victims, into a city of the perpetrators,” the AfD statement said.

AfD senses a huge opportunity in Chemnitz, say analysts, and is determined to stoke Germany’s political divisions over migration and national identity, hoping the agitation will translate into greater electoral gains in the future.  

 

Activists: Proposed Myanmar Highway ‘Ecological, Social Disaster’

Community and conservation groups in Myanmar have branded a planned highway linking a port project to Thailand an “ecological and social disaster,” saying it would uproot indigenous people from their homes and farms.

Critics said an environmental and social impact assessment for the road project, approved by the Myanmar government in June, failed to adequately specify compensation for loss of land and livelihoods, among other problems.

“This is a road to an ecological and social disaster (in Myanmar),” said Christy Williams, Myanmar director for the World Wide Fund for Nature (WWF), an international conservation group.

The highway is considered strategically important to both nations as it would link Thailand to a deep-sea port and planned Special Economic Zone (SEZ) in Dawei, a town on the Myanmar side of an isthmus divided between the two countries.

The industrial complex would serve as a gateway to Southeast Asia’s markets, with goods trucked between Dawei and Thailand, avoiding the need for ships to sail southward through the Malacca Straights, the world’s busiest shipping lane.

​Region of rich biodiversity

But Williams said the planned road would pass through a region of “huge ecological importance with rich biodiversity.”

The assessment looked only at the effects on people and the environment within 500m (550 yards) of the road, he added, but the impact will affect a much wider area.

He said WWF had been working with communities and provided “extensive recommendations and solutions” to the Myanmar government and Myandawei Industrial Estate Co. Ltd, the Thai firm developing the road and SEZ, but these had “been ignored.”

The impact assessment failed to address many issues brought forward by residents during consultation sessions, said Thant Zin, director of the Dawei Development Association, a local civil society group.

“Our main concerns over the project are forced relocation of thousands of local indigenous people, potential industrial pollution … land grabbing and livelihood issues, and human rights violations in project area,” he said.

A spokesman for Myanmar’s environment ministry did not respond to repeated requests for comment.

Gunn Bunchandranon, a spokesman for Myandawei Industrial Estate Co. Ltd, said the highway’s impact assessment was in line with the laws of both Myanmar and Thai.

He said people from affected communities who attended public consultations did not raise any concerns about compensation for loss of land.

However, a 2015 draft of the impact assessment provided by conservation group EarthRights International included the minutes of one such meeting where the land compensation question was raised.

Risk of renewed conflict

Myanmar residents have also expressed fear that the highway could reignite conflict between the government and Myanmar’s oldest armed group, the Karen National Union (KNU), according to Ben Hardman of EarthRights International.

Those concerns did not make it into the impact assessment, Hardman said.

The KNU signed a cease-fire agreement with the military in 2012, ending six decades of fighting. In 2015 it signed a national cease-fire agreement (NCA), along with other armed ethnic groups.

But relations with the government remain tense, and the KNU claims control over territory the highway would pass through.

Saw Tah Doh Moo, the group’s secretary general, said the NCA required that the KNU be consulted about any development projects in areas under its control.

However, neither the company nor the government have officially discussed the road project with them, he said.

“I don’t want to say what would happen, but it would undermine the NCA,” he told the Thomson Reuters Foundation by phone. “We have to think about how to respond.”

US to Proceed With Mexico Trade Pact, Keep Talking to Canada

U.S. President Donald Trump notified Congress on Friday of his intent to sign a trade agreement with Mexico after talks with Canada broke up earlier in the day with no immediate deal to revamp the tri-nation North American Free Trade Agreement.

U.S. Trade Representative Robert Lighthizer said U.S. officials would resume talks with their Canadian counterparts next Wednesday with the aim of getting a deal all three nations could sign.

All three countries have stressed the importance of NAFTA, which governs billions of dollars in regional trade, and a bilateral deal announced by the United States and Mexico on Monday paved the way for Canada to rejoin the talks this week.

But by Friday the mood had soured, partly on Trump’s off-the-record remarks made to Bloomberg News that any trade deal with Canada would be “totally on our terms.” He later confirmed the comments, which the Toronto Star first reported.

“At least Canada knows where I stand,” he later said on Twitter.

Ottawa has stood firm against signing “just any deal.” 

​’Making progress’

But at a news conference Friday afternoon, Canadian Foreign Minister Chrystia Freeland expressed confidence that Canada could reach agreement with the United States on a renegotiated NAFTA trade pact if there was “goodwill and flexibility on all sides.”

“We continue to work very hard and we are making progress. We’re not there yet,” Freeland told reporters.

“We know that a win-win-win agreement is within reach,” she added. “With goodwill and flexibility on all sides, I know we can get there.”

The Canadian dollar weakened to C$1.3081 to the U.S. dollar after The Wall Street Journal first reported that the talks had ended Friday with no agreement. Canadian stocks remained 0.5 percent lower.

Global equities were also down following the hawkish turn in Trump’s comments on trade.

Lighthizer has refused to budge despite repeated efforts by Freeland to offer some dairy concessions to maintain the Chapter 19 independent trade dispute resolution mechanism in NAFTA, The Globe and Mail reported Friday.

However, a spokeswoman for USTR said Canada had made no concessions on agriculture, which includes dairy, but added that negotiations continued.

The United States wants to eliminate Chapter 19, the mechanism that has hindered it from pursuing anti-dumping and anti-subsidy cases. Lighthizer said on Monday that Mexico had agreed to cut the mechanism. For Ottawa, Chapter 19 is a red line.

Trump argues Canada’s hefty dairy tariffs are hurting U.S. farmers, an important political base for his Republican Party.

But dairy farmers have great political clout in Canada too, and concessions could hurt the ruling Liberals ahead of a 2019 federal election.

At a speech in North Carolina on Friday, Trump took another swipe at Canada. “I love Canada, but they’ve taken advantage of our country for many years,” he said.

Poland Counts WWII Damages It Wants to Seek from Germany

Poland says it lost more than 5 million citizens and over $54 billion dollars (46.6 billion euros) worth of assets under the Nazi German occupation of the country during World War II.

A parliamentary commission announced the numbers as part of the current Polish government’s declared intent to seek damages from Germany.

Poland spent decades under Soviet domination after the war and wasn’t able to seek damages independently. However, Germany is making payments to Polish survivors of Nazi atrocities.

Preliminary calculations done for the commission put the number of Polish citizens killed from 1939 to 1945 at 5.1 million, including 90 percent of Poland’s Jewish population.

Losses in cities were estimated to be worth 53 billion zlotys ($14 billion; 12 billion euros). Additional losses in agriculture and transportation infrastructure also were factored in.

Coca-Cola Hopes for Caffeine Hit as It Buys Costa Coffee Chain

Coca-Cola is hoping for a caffeine-fueled boost with the acquisition of British coffee chain Costa.

Costa is Britain’s biggest coffee company, with over 2,400 coffee shops in the U.K. and another 1,400 in more than 30 countries, including around 460 in China, its second-biggest market. Coca-Cola said Friday it will buy the Costa brand from Whitbread for 3.9 billion pounds ($5.1 billion) in cash.

The deal, expected to close in the first half of 2019, comes on the heels of Coca-Cola’s announcement earlier in August that it was buying a minority ownership stake in sports drink maker BodyArmor for an undisclosed amount. Coca-Cola’s other investments in recent years have included milk that is strained to have more protein and a push into sparkling water.

The move is Coca-Cola’s latest diversification as health-conscious consumers, at least in America, move away from traditional soda.

Rival PepsiCo, meanwhile, recently bought carbonated drink maker SodaStream, which produces machines that allow people to make fizzy drinks in their own homes.

Coca-Cola already owns the Georgia and Gold Peak coffee brands, which make bottled and canned drinks, but the purchase of Costa could allow it to compete with brands like Starbucks.

Coffee is growing by 6 percent a year, making it one of the fastest-growing beverage categories in the world, said James Quincey, Coca-Cola president & CEO.

“Hot beverages is one of the few remaining segments of the total beverage landscape where Coca-Cola does not have a global brand,” he said.

Coca-Cola has over 500 brands in its stable including Fanta, innocent smoothies and Powerade sports drinks. In 2017, it generated operating income of $9.7 billion on revenues of $35.4 billion.

Without being specific about expansion plans, Quincey said in a video posted on Coca-Cola’s website that the company would “over time” look to take Costa “to more people in more places.”

Costa doesn’t currently have a presence in North or South America, but Quincey indicated that one potential early expansion route would be to use Costa’s vending operation and grow the company’s ready-to-drink products. In addition to its shops, Costa has self-serve coffee machines in grocery stores and gas stations.

Whitbread bought Costa for 19 million pounds in 1995, when it had just 39 shops. In recent years, Whitbread has invested heavily in Costa’s expansion overseas, but had been looking to siphon off the business to generate funds for the expansion and for its other business, the budget hotel chain Premier Inn.

Then Coca-Cola got in touch with what Whitbread said was a “highly compelling” offer. The Whitbread board unanimously backed the deal.

Whitbread will use a “significant majority” of the net cash proceeds — around 3.8 billion pounds after taking into account such things as transaction costs — returning cash to shareholders. Some will be used to pay down debt and to make a contribution to the pension fund.

Doing so, Whitbread said, would “provide headroom” to further expand the Premier Inn budget hotel chain in Britain and Germany.

Whitbread’s share price soared 17 percent in early afternoon trading in London.

Nicholas Hyett, equity analyst at London-based stockbrokers Hargreaves Lansdown, said Costa will get “lots of care and attention” from Coca-Cola.

“Its global reach should turbo-charge growth in the years to come, and hot drinks are one of the few areas of the wider beverages sector where the soft drinks giant doesn’t have a killer brand,” he said.

UNHCR: Asylum Seekers on Greek Islands Live in Squalid Conditions

The U.N. refugee agency (UNHCR) warns asylum seekers and migrants who came ashore on the Greek islands are living in conditions unfit for human habitation. The agency is urging the Greek government to speed up the  transfer of these individuals to the mainland so they can receive proper care.

According to UNHCR, thousands of asylum seekers and migrants who made the perilous journey across the Aegean Sea are forced to live in squalid, overcrowded centers on the Greek islands of Lesbos, Samos, Chios and Kos.

For example, the agency said more than 7,000 asylum-seekers and migrants on Lesbos are crammed into shelters built to accommodate just 2,000 people, one-quarter of them children.

UNHCR spokesman Charlie Yaxley said these conditions are having a devastating impact on peoples’ well-being.

“We are seeing increasing numbers of people including children presenting with mental health problems,” he said. “… We are seeing rising levels of sexual assaults because there is insufficient security in place and the sanitary facilities as well. On recent missions to the islands, staff have commented that the sanitary facilities are essentially unusable in some cases.”

Yaxley noted an average of 114 people are arriving on the islands every day — more than 70 percent are families from Syria, Iraq, and Afghanistan. He said the new arrivals are adding to the congestion and deteriorating conditions.

The UNHCR said Greek authorities must do more to overcome bureaucratic delays that are preventing the speedy transfer of people to the mainland. If no ready solution can be found, it said extraordinary measures should be considered, including the use of emergency accommodations, hotels, and other alternative housing facilities.

However, at the request of the Greek government, the UNHCR said it has “exceptionally agreed to continue its support in transport of asylum-seekers to the mainland in September in order to avoid further delays.”

Rebel Media Confirms Separatist Leader in East Ukraine Killed in Blast

The official media outlet of Russia-backed separatists in the Donetsk region of eastern Ukraine confirmed rebel leader Alexander Zakharchenko had been killed on Friday.

The Donetsk News Agency said in a statement on its website that Zakharchenko had been killed in an explosion in central Donetsk, citing the rebel leader’s administration.

Pope Francis ‘Serene’ Despite Hovering Sex Abuse Scandal

Pope Francis was described Thursday by a top aide as ‘serene’ in the face of the unprecedented public skirmishing breaking out among Catholic prelates over an explosive charge that the pontiff knew about sexual misconduct allegations against a U.S. cardinal but chose to ignore them.

The Vatican’s secretary of state said Francis is maintaining his grace despite “bitterness and concern” in the Vatican over the accusation leveled against him by a onetime top Catholic envoy, who has demanded the Pope resign.

The Pope’s accuser, Archbishop Carlo Maria Vigano, a former Vatican ambassador and a doctrinal opponent of Francis, has gone into hiding after making his claim last Sunday in a scathing 11-page document that was crafted with the assistance of a well-known Italian journalist and a stalwart critic of the Pope. According to Vigano, Francis ignored misconduct allegations against Cardinal Theodore McCarrick.

The incendiary document, which also warned of a homosexual culture in the church, was leaked to several conservative Catholic newspapers and blogs, all determined foes of Francis. They agreed to publish it on the second and final day of Francis’s trip to Ireland, in a coordinated effort, say Francis loyalists, to cause him maximum damage.

The publication of the letter upended the visit to Ireland, where Pope Francis had hoped to stanch the damage being done to the Holy See by the clerical sex abuse crisis that has roiled the Roman Catholic Church worldwide for decades. Just two weeks before the Ireland trip, the Church was rocked by further clerical abuse allegations with the release of a grand jury report in the U.S. which detailed the abuse of children in six Pennsylvania dioceses over the past seven decades by hundreds of “predator priests.”

In Ireland, Pope Francis met Irish abuse victims and asked for the faithful to forgive the church for its failings. “We ask forgiveness for the times that we did not show [abuse] survivors compassion or the justice they deserve in the search for truth,” he said. And he then added: “We ask forgiveness for members of the Church hierarchy who did not take care of these situations and kept quiet.”

But Vigano says Francis is one of the church leaders who’s colluded in covering up abuse or has been too ready to overlook abuse allegations when leveled against friends and progressive allies. He has also claimed that a tolerant attitude towards homosexuality in the Vatican — even alleging a progressive gay cabal in the upper echelons of the Church — is the root cause of clerical sex abuse. Francis supporters scoff at that charge, noting that clerical sex abuse has been going on for decades and for most of that time traditionalists were in control of the Vatican.

‘Conspiracy of silence’

Midweek Vigano reemerged to give an interview to La Verità newspaper, saying he spoke up out of a sense of duty to the Catholic Church and not because the Pope had passed him over for promotion. “I have never had feelings of vendetta or rancor,” he said, adding that there is a “conspiracy of silence” in the Church “not so dissimilar from the one that prevails in the mafia.”

Vigano says Francis was aware of the grave allegations of sexual misconduct against Cardinal Theodore McCarrick, who’s been accused of abusing young priests and molesting seminarians for decades. Unlike his predecessor Pope Benedict XVI, who imposed sanctions on McCarrick, Francis and his circle of advisers chose to rehabilitate the U.S. cardinal, argues Vigano.

The claims are shaking Francis’s five-year papacy.

Amid the swirl of charge and counter-charge between church liberals and conservatives locked in a power struggle, there’s mounting anxiety in the Vatican that traditionalists, opposed to the Pope’s efforts to make the Church more inclusive and less rigid doctrinally, are determined to use the clerical sex abuse scandal to gain politically.

The pope’s supporters say Francis’ doctrinal opponents won’t be satisfied until they have either forced him to resign, or so damaged him that he’s stripped of the authority needed to drive the reforms they’re determined to halt. They say traditionalists have been emboldened by the resignation of Benedict, whose stepping down as leader of the Catholic Church in 2013 made him the first pope to relinquish the office since 1415, setting a modern-day precedent for pontiffs not having to stay in office until they die.

Abuse survivors are also suspicious of the motives of Vigano and the circle of traditionalists supporting him. Despite their own frustrations with Francis at what they see as a failure by his Vatican to take concrete steps to root out corrupt clergy, they worry traditionalists are enlisting homophobia in their campaign against Francis and are not truly focused on the well-being of abuse survivors.

Not a word

Cardinal Oscar Maradiaga, one of the Pope’s closest advisers, dismissed Vigano’s attacks, telling La Repubblica newspaper Thursday, “Transforming information of a private nature into a bombshell headline that explodes around the world damaging the faith of many people doesn’t seem to me to be a correct action.” But Maradiaga did not engage with the details of Vigano’s central charge — that the pope ignored misconduct allegations against McCarrick, who last month resigned, becoming the first cardinal to do so since 1927.

Francis, too, has continued to remain silent about McCarrick.

The 81-year-old pope told journalists who accompanied him on his two-day visit to Ireland that he wouldn’t comment. Asked in an impromptu press conference on board his plane on the return to Rome about Vigano’s accusation, the Pope said he left it up to the journalists to judge for themselves. “I won’t say a word about it,” he said.

Vatican analysts say the Holy See appears to be hoping that by ignoring the substance of the claim against Francis, the storm can be ridden out.  But they warn that appears to be a forlorn hope — by shunning the charge, Francis is fueling it and prompting the question, ‘why won’t the pope answer?’ If the claim is inaccurate, “why wouldn’t the pope correct it, just as he has spoken so openly about so many other things?” queried commentator Tim Stanley in a commentary for the London Sunday Telegraph.

Francis’ conservative critics are gearing up to press formally for an answer. In an open letter to his diocese in Tyler, Texas, Bishop Joseph Strickland midweek said: “Let us be clear that they are still allegations, but as your shepherd I find them to be credible.” He says he will agitate for an investigation.

Other prelates are plotting to do so as well, next month in Rome at a synod of bishops to discuss young people and faith.

The Diocese of Dallas in Texas has petitioned the Pope to hold a special synod, or summit, of bishops on the clerical sex abuse scandal.

Progressives started to rally Friday around Francis with prelates from Latin America, the pope’s home continent, as well as Portugal  leading the charge.

Of the accusations, Cardinal António dos Santos Marto, of Fatima, Portugal, told the Observador newspaper, “It’s a campaign organized by ultra-conservatives to mortally wound the pope.”

Marto predicted Francis will be strengthened by the controversy, adding, however, that “in this moment it’s necessary for the entire Church to manifest her support for the pope.” He said Francis may soon switch tactics and address head-on the accusations against him.

Francis also received backing from a top aide to his predecessor, Benedict XVI. Archbishop Georg Ganswein dismissed Vigano’s claim that Benedict had informed Francis of the misconduct allegations against McCarrick. He told Italian newspapers Friday: “It’s all rubbish.”

 

 

Canada, US Push Toward NAFTA Deal by Friday

Top NAFTA negotiators from Canada and the United States increased the pace of their negotiations Thursday to resolve final differences to meet a Friday deadline, with their Mexican counterpart on standby to rejoin the talks soon.

Despite some contentious issues still on the table, the increasingly positive tone contrasted with U.S. President Donald Trump’s harsh criticism of Canada in recent weeks, raising hopes that the year-long talks on the North American Free Trade Agreement will conclude soon with a trilateral deal.

“Canada’s going to make a deal at some point. It may be by Friday or it may be within a period of time,” U.S. President Donald Trump told Bloomberg Television. “I think we’re close to a deal.”

Trilateral talks were already underway at the technical level and Mexican Economy Minister Ildefonso Guajardo was expected to soon rejoin talks with U.S. Trade Representative Robert Lighthizer and Canadian Foreign Minister Chrystia Freeland, possibly later on Thursday, people familiar with the process said.

Trump said in a Bloomberg interview: “Canada’s going to make a deal at some point. It may be by Friday or it may be within a period of time,” Trump said. “I think we’re close to a deal.”

Negotiations entered a crucial phase this week after the United States and Mexico announced a bilateral deal on Monday, paving the way for Canada to rejoin talks to modernize the 24-year-old accord that underpins over $1 trillion in annual trade.

The NAFTA deal that is taking shape would likely strengthen North America as a manufacturing base by making it more costly for automakers to import a large share of vehicle parts from outside the region. The automotive content provisions, the most contentious topic, could accelerate a shift of parts-making away from China.

A new chapter governing the digital economy, along with stronger intellectual property, labor and environmental standards could also work to the benefit of U.S. companies, helping Trump to fulfill his campaign promise of creating more American jobs.

Trump has set a Friday deadline for the three countries to reach an agreement, which would allow Mexican President Enrique Pena Nieto to sign it before he leaves office at the end of November. Under U.S. law, Trump must wait 90 days before signing the pact.

The U.S. president has warned he could try to proceed with a deal with Mexico alone and levy tariffs on Canadian-made cars if Ottawa does not come on board, although U.S. lawmakers have said ratifying a bilateral deal would not be easy.

Dairy, dispute settlement

One sticking point for Canada is the U.S. effort to dump the Chapter 19 dispute-resolution mechanism that hinders the United States from pursuing anti-dumping and anti-subsidy cases. Lighthizer said on Monday that Mexico had agreed to eliminate the mechanism.

Trump also wants a NAFTA deal that eliminates dairy tariffs of up to 300 percent that he argues are hurting U.S. farmers, an important political base for Republicans.

But any concessions to Washington by Ottawa is likely to upset Canadian dairy farmers, who have an outsized influence in Canadian politics, with their concentration in the provinces of Ontario and Quebec.

 “Ultimately, we’ve got huge issues that are still to be resolved,” said Jerry Dias, head of Canada’s influential Unifor labor union. “Either we’re going to be trading partners or we’re going to fight.”

Microsoft to Contractors: Give New Parents Paid Leave

Microsoft will begin requiring its contractors to offer their U.S. employees paid leave to care for a new child.

It’s common for tech firms to offer generous family leave benefits for their own software engineers and other full-time staff, but paid leave advocates say it’s still rare to require similar benefits for contracted workers such as janitors, landscapers, cafeteria crews and software consultants.

“Given its size and its reach, this is a unique and hopefully trailblazing offering,” said Vicki Shabo, vice president at the National Partnership for Women and Families.

The details

The new policy affects businesses with at least 50 U.S.-based employees that do substantial work with Microsoft that involves access to its buildings or its computing network. It doesn’t affect suppliers of goods. Contractors would have to offer at least 12 weeks of leave to those working with the Redmond, Washington-based software giant; the policy wouldn’t affect the contractors’ arrangements with other companies. Leave-takers would get 66 percent of regular pay, up to $1,000 weekly.

The policy announced Thursday rolls out over the next year as the company amends its contracts with those vendors. That may mean some of Microsoft’s costs will rise to cover the new benefits, said Dev Stahlkopf, the company’s corporate vice president and general counsel.

“That’s just fine and we think it’s well worth the price,” she said.

Microsoft doesn’t disclose how many contracted workers it uses, but it’s in the thousands.

The new policy expands on Microsoft’s 2015 policy requiring contractors to offer paid sick days and vacation.

Facebook

Other companies such as Facebook have also committed to improve contractor benefits amid unionization efforts by shuttle drivers, security guards and other contract workers trying to get by in expensive, tech-fueled regions such as the San Francisco Bay Area and around Washington’s Puget Sound.

Facebook doesn’t guarantee that contract workers receive paid parental leave, but provides a $4,000 new child benefit for new parents who don’t get leave. A much smaller California tech company, SurveyMonkey, announced a paid family leave plan for its contract workers earlier this year.

Washington state law

Microsoft said its new policy is partially inspired by a Washington state law taking effect in 2020 guaranteeing eligible workers 12 weeks paid time off for the birth or adoption of a child. The state policy, signed into law last year, follows California and a handful of other states in allowing new parents to tap into a fund that all workers pay into. Washington will also require employers to help foot the bill, and will start collecting payroll deductions next January.

A federal paid parental leave plan proposed by President Donald Trump’s daughter, Ivanka Trump, could rely on a similar model but has gained little traction.

“Compared to what employers are doing, the government is way behind the private sector,” said Isabel Sawhill, a fellow at the Brookings Institution who has urged the White House and Congress to adopt a national policy.

Sawhill said it is “very unusual and very notable” that Microsoft is extending family leave benefits to its contract workers. Microsoft already offers more generous family leave benefits to its own employees, including up to 20 weeks fully paid leave for a birth mother.

Pushing the feds

Microsoft’s push to spread its employee benefits to a broader workforce “sends a message that something has to happen more systematically at the federal level,” said Ariane Hegewisch, a program director for employment and earnings at the Institute for Women’s Policy Research. Until then, she said, it’s helpful that Microsoft seems willing to pay contracting firms more to guarantee their workers’ better benefits.

“Paid family leave is expensive and they acknowledge that,” Hegewisch said. Otherwise, she said, contractors with many employees of child-bearing age could find themselves at a competitive disadvantage to those with older workforces.

Republican state Sen. Joe Fain, the prime sponsor of the measure that passed last year, said Microsoft’s decision was “a really powerful step forward.”

By applying the plan to contractors and vendors around the country, “it really creates a pressure for those state legislatures to make a similar decision that Washington made.”

Argentina Boosts Interest Rate to 60%; Peso Sinks

Argentina’s Central Bank on Thursday increased its benchmark interest rate to 60 percent — the world’s highest — in an effort to halt a sharp slide in the value of the peso, which plunged to a record low.

The peso fell more than 13 percent against the dollar, closing at an all-time low of 39.2 per greenback, after slipping about 7 percent the day before.

The Central Bank said in a statement that it was hiking its benchmark interest rate by 15 percentage points to 60 percent in response to the currency problems and the risk of greater impact on local inflation, which is already running at about 30 percent a year.

The tumult in the exchange market came a day after President Mauricio Macri said he was asking for an early release of some International Monetary Fund money under an $50 billion backup financing arrangement approved earlier.

Some experts said the announcement, combined with the interest rate hike, had the unintended effect of fueling the crisis of confidence.

“I think today’s interest hike announcement will do nothing but leave investors even more jittery,” said Monica de Bolle, senior fellow at the Peterson Institute for International Economics.

“I’m finding it difficult to understand why, after yesterday’s announcement about front-loading more of the IMF funding, the government thought the hike was warranted,” she said. “Hyperactivity starts to look like desperation.”

Macri has struggled to calm markets and bring confidence to Argentines who continue to lose purchasing power. Many are frustrated with layoffs, higher utility rates and a rise in poverty levels.

Many also have bad memories of the IMF and blame its free-market economic policies for contributing to the country’s worst crisis in 2001-02, when one of every five Argentines went unemployed and millions fell into poverty.

Seeing journalists filming screens showing the exchange rates in downtown Buenos Aires, Ruben Montiel, 55, burst out: “Macri is an embarrassment!”

“You can’t live like this. The prices of everything go up on a daily basis,” he said. “There’s no work, utility rates have gone through the roof … people are sleeping on the streets.”

Macri, a pro-business conservative who came into office in 2015, had promised to trim Argentina’s fiscal deficit, reduce poverty and curb inflation. He cut red tape and tried to reduce the government’s budget deficit by ordering layoffs and cutting utility subsidies, but it triggered labor unrest.

Then in December, officials announced a rise in the inflation target, which caused investors to begin doubting Macri’s commitment to taming price rises.

Meanwhile, the peso slumped against the dollar as rising U.S. interest rates lured investors to pull greenbacks out of Argentina.

That caused jitters among Argentines, who have been used to stashing away dollars as a cushion since the 2001 crisis, when banks froze deposits and put up sheet-metal barricades as thousands of protesters unsuccessfully tried to withdraw their savings. Dozens died in protests and looting in December 2001 as the economy unraveled and Argentina eventually suffered a record $100 billion debt default.

“The government will need to shuffle its cabinet and strike deals with provincial governors for next year’s budget,” said Argentine economist Marcos Buscaglia. “In the short-term, the government just needs to stop this crisis.”

IAEA Says Iran Is Sticking to Nuclear Deal

Iran has remained within the main restrictions on its nuclear activities imposed by a 2015 deal with major powers, a confidential report by the U.N. atomic watchdog indicated Thursday.

In its second quarterly report since President Donald Trump announced in May that the United States would quit the accord and reimpose sanctions, the International Atomic Energy Agency said Iran had stayed within the caps on uranium enrichment levels, enriched uranium stocks and other items.

In its last report in May, the IAEA had said Iran could do more to cooperate with inspectors and thereby “enhance confidence”, but stopped short of saying the Islamic Republic had given it cause for concern. Thursday’s report to member states seen by Reuters contained similar language.

It said the Vienna-based U.N. nuclear watchdog was able to carry out all so-called complementary access inspections needed to verify Iran’s compliance with the deal.

“Timely and proactive cooperation by Iran in providing such access facilitates implementation of the Additional Protocol and enhances confidence,” said the report, which was distributed to IAEA member states.

“The production rate [of enriched uranium] is constant. There is no change whatsoever,” a senior diplomat added.

With the United States reimposing its sanctions on Iran that were lifted under the nuclear deal, many diplomats and analysts now doubt that the accord will survive despite European Union efforts to counter some of the effects of Trump’s move.

Sticking to the nuclear accord is not the only way forward for Iran, Foreign Minister Mohammad Javad Zarif said Thursday. “Being the party to still honor the deal in deeds & not just words is not Iran’s only option,” he said on Twitter.

​EU action urged

Speaking after the IAEA report was sent to the agency’s member states, French Foreign Minister Jean-Yves Le Drian said the deal was still holding, despite the U.S. withdrawal.

He urged his fellow ministers, who met in Vienna on Thursday to discuss EU policy on Iran, to do more to protect Tehran from U.S. sanctions, calling for “permanent financial mechanisms that allow Iran to continue to trade.”

The EU implemented a law this month to shield European companies from the impact of U.S. sanctions on Tehran and has approved aid for the Iranian private sector, although large European companies are pulling out of Iran.

Adhering to the deal should bring Iran economic benefits, Zarif said. “If preserving [the accord] is the goal, then there is no escape from mustering the courage to comply with commitment to normalize Iran’s economic relations instead of making extraneous demands,” Zarif wrote on Twitter.

On Wednesday, Iranian Supreme Leader Ayatollah Ali Khamenei cast doubt on the ability of EU countries to save the agreement and said Tehran might abandon it.

Khamenei told President Hassan Rouhani not to rely too much on European support as he came under increased pressure at home over his handling of the economy in the face of U.S. sanctions, with key ministers under attack by parliament.

Le Drian, whose country signed the Iran deal along with Britain, Germany, China, Russia and the United States under then-President Barack Obama, said Tehran should be ready to negotiate on its future nuclear plans, its ballistic missile arsenal and its role in wars in Syria and Yemen.

Those issues were not covered by the 2015 deal, and Trump has cited this as a major reason for pulling Washington out of it.

Le Drian said Iran, which says its missiles are only for defense, was arming regional allies with rockets and allowing “ballistic proliferation,” adding: “Iran needs to avoid the temptation to be the [regional] hegemon.”

Iran has ruled out negotiations on its ballistic missiles and broader Middle Eastern role.

Afghan Taliban Urges Retaliation for Planned Dutch Cartoon Contest

The Taliban urged Afghan soldiers on Thursday to attack Dutch troops serving in the NATO-led Resolute Support mission in retaliation for a contest of cartoons depicting the Prophet Muhammad planned by far-right

politician Geert Wilders.

The Taliban threat was issued shortly before Wilders announced Thursday that he was calling off the contest because it posed too great a threat of provoking violence against innocents.

In a statement, the Taliban’s main spokesman called the contest a blasphemous action and a hostile act by the Netherlands against all Muslims.

Members of the Afghan security forces, “if they truly believe themselves to be Muslims or have any covenant towards Islam, should turn their weapons on Dutch troops” or help Taliban fighters attack them, the statement said.

Around 100 Dutch troops are serving in the 16,000-strong Resolute Support mission to train and advise Afghan forces, according to the Dutch defense ministry. About half of the NATO-led force is made up of Americans.

Wilders’ far-right Freedom Party, which has become the second largest in the Netherlands, announced the competition in June, saying it had the right to hold it under freedom-of-speech laws.

Dutch Prime Minister Mark Rutte had said that he didn’t support the planned contest but that he would defend Wilders’ right to hold it.

Images of the Prophet Muhammad are traditionally forbidden in Islam, and caricatures are regarded by most Muslims as deeply offensive.

In 2005, a Danish newspaper published cartoons of the Prophet that sparked a wave of protests across the world. Ten years later, Islamist gunmen killed 12 people in an attack on the offices of French satirical magazine Charlie Hebdo, which had published similar caricatures.

US Warns Russia to Stop Harassing Ships Headed to Ukraine

The Trump administration told Russia on Thursday to stop what it said was harassment of international shipping vessels in the Sea of Azov and Kerch Strait aimed at trying to weaken Ukraine’s economy.

“Russia’s actions to impede maritime transit are further examples of its ongoing campaign to undermine and destabilize Ukraine, as well as its disregard for international norms,” State Department spokeswoman Heather Nauert said in a statement. 

The U.S. accused Russia of delaying commercial ships since April and stopping at least 16 commercial ships from reaching Ukranian ports.

Relations between Russia and Ukraine have deteriorated since Moscow illegally annexed Ukraine’s Crimea region and provoked conflict between pro-Russian separatists and Ukrainian forces in eastern Ukraine in 2014.

Ukrainian President Petro Poroshenko observed Ukraine’s Independence Day last week by announcing that his country had “cut all ties with the Russian Empire and the Soviet Union.”

The Kremlin did not immediately respond to the U.S. request. 

Minnesota’s Hmong Farmers Drive Local Food Economy

Hmong farmers in St. Paul, Minnesota have the best advocate for their business enterprises: themselves, working together.

Originally from China, the Hmong are an Asian ethnic group that migrated to Vietnam and Laos in the 18th century. They have never had a country of their own. After the Vietnam War ended, many resettled in the U.S., giving the U.S. the largest Hmong population outside of Asia. The population in Minnesota is more than 60,000, second behind the state of California.

The Hmong, who are long time farmers, did what they knew best when they got to Minnesota. And by the late 1980’s they spearheaded the revitalization of local farmers’ markets, making them some of the most vibrant in the city.

But the Hmong also discovered that as immigrant farmers, they faced barriers in buying land, obtaining financing, accessing markets and building sustainable family businesses. They were struggling. To combat all that, a group of Hmong farmers established the non-profit Hmong American Farmers Association (HAFA) in 2011.

“One of the reasons HAFA was created was because Hmong farmers were experiencing so much uncertainty. They didn’t always have access to land,” HAFA co-founder Pakou Hang explained. “So when you don’t have land tenure or land certainty you can’t actually invest in organic certification, you can’t invest in perennials, which actually have higher profit margins.”

HAFA’s intent was to “advance the prosperity of Hmong American farmers through cooperative endeavors.” At the center of the association is a 63-hectare (155-acre) farm outside St. Paul where member farmers have long-term leases on two to four hectare (five to 10-acre) parcels to grow their vegetables and flowers.

How HAFA helps

On a recent Friday, Mao Moua and her husband were harvesting vegetables at their plot – for a Saturday farmer’s market.

The Mouas were among the mass exodus of Hmong people fleeing Laos for Thailand and eventually the U.S. in the 1970s. Ever since they arrived, they have been farming in Minnesota and in recent years on the HAFA membership farm.

“I like farming on the HAFA farm because this is a Hmong association,” Moua said. “There are Hmong workers who help us. They are like our hands, eyes and ears. I like there is also water, electricity and the food hub.”

She added proudly, “[I grow] corn, sweet potato, cherry, snap pea, cucumber, and a little cherry tomato. That’s all.”

HAFA’s alternative markets program is called Food Hub.

“Our Food Hub is the place where we aggregate HAFA farmers’ produce and we distribute, sell it to different institutions such as schools, co-ops, or restaurants. And then we also have a CSA program or community supported agriculture that we have about 350 currently members. They get a weekly subscription of produce,” explained Operations Manager Kou Yang.

And if any of the farmers need micro loans to buy tractors or new farming equipment, HAFA’s business development programs are there to help. But Hang said all the programs are not just for income generation.

“What we’re really interested in, what we are focused on is actually wealth creation not just intergenerational wealth but community wealth,” Hang said.

Community wealth

Today, Hmong American farmers make up more than 50 percent of all produce growers selling at area farmers’ markets.

“The Hmong growers’ participation in the farmers’ market has really revitalized the farmers’ market,” said David Kotsonas a director of the Minnesota Farmers’ Market Association.

The Hmong are also at the center of a Minnesota-based local foods economy that has changed the way Minnesotans eat.

“Hmong farmers are major contributors to our local food economy and to our overall economy,” Hang said. “I mean studies have shown that they produced over $250 million in sales.”

Hang was born in a refugee camp in Thailand and came to the U.S. with her parents in 1976.

“During the Vietnam war in Laos my father joined actually a secret army that was allied with the United States CIA. When the Vietnam War ended and the communist faction came into power in Laos they actually began to target Hmong soldiers,” she said.

Hang has big dreams for the HAFA farm which in addition to enabling farmers, conducts research and fosters community ties.

“A hive of learning. A hive of community building,” Hang described it.

Indian Currency Decree Did Little to Root Out ‘Black Money’

Nearly all of the currency removed from circulation in a surprise 2016 attempt to root out illegal hoards of cash came back into the financial system, India’s reserve bank has announced, indicating the move did little to slow the underground economy.

Prime Minister Narendra Modi’s currency decree, which was designed to destroy the value of billions of dollars in untaxed cash stockpiles, caused an economic slowdown and months of financial chaos for tens of millions of people.

Modi announced in a November 2016 TV address that all 500-rupee and 1,000-rupee notes, then worth about $7.50 and $15, would be withdrawn immediately from circulation. The banned notes could be deposited into bank accounts but the government also said it would investigate deposits over 250,000 rupees, or about $3,700. The government eventually released new currency notes worth 500 and 2,000 rupees.

In theory, the decree meant corrupt politicians and businesspeople would suddenly find themselves sitting on billions of dollars in worthless currency, known here as “black money.”

“A few people are spreading corruption for their own benefit,” Modi said in the surprise nighttime speech announcement of the order. “There is a time when you realize that you have to bring some change in society, and this is our time.”

But even as the decree caused turmoil for those in India who have always depended on cash — the poor and middle class, and millions of small traders — the rich found ways around the currency switch. In the months after the decree, businesspeople said that even large amounts of banned currency notes could be traded on the black market, though middlemen charged heavy fees.

The reserve bank report said in its Wednesday report that 99.3 percent of the $217 billion in notes withdrawn from circulation had come back into the economy. Some officials had originally predicted that number could be as low as 60 percent.

“Frankly, I think demonetization was a mistake,” said Gurcharan Das, a writer and the former head of Proctor & Gamble in India. He said that while it did broaden the country’s tax base, it was a nightmare for the immense, cash-dependent informal economy.

“You can’t overnight change that in a country which is poor and illiterate. Therefore, for me it’s not only an economic failure but a moral failure as well,” Das said.

 

Trump OKs Tariff Relief for Three Countries

U.S. President Donald Trump has signed proclamations permitting targeted relief from steel and aluminum quotas from some countries, the U.S. Commerce Department said on Wednesday.

Trump, who put in place tariffs on steel and aluminum imports in March, signed proclamations allowing relief from the quotas on steel from South Korea, Brazil and Argentina and on aluminum from Argentina, the department said in a statement.

“Companies can apply for product exclusions based on insufficient quantity or quality available from U.S. steel or aluminum producers,” the statement said. “In such cases, an exclusion from the quota may be granted and no tariff would be owed.”

Trump, citing national security concerns, placed tariffs of 25 percent on steel imports and 10 percent on aluminum imports.

The tariffs on steel and aluminum imports from the European Union, Canada and Mexico took effect June 1, and Commerce Secretary Wilbur Ross said May 31 that arrangements had been made with some countries to have non-tariff limits on their exports of the two metals to the United States.

Ross said the arrangement with South Korea was for a quota of 70 percent of average steel exports to the United States in the years 2015 to 2017.

The Brazilian government said at the time the U.S. quotas and tariffs on Brazil’s steel and aluminum exports were unjustified but that it remained open to negotiate a solution.

Brazilian semi-finished steel exports to the United States are subject to quotas based on the average for the three years from 2015-2017, while finished steel products will be limited to a quota of 70 percent of the average for those years.

India Not Guaranteed US Sanctions Waiver for Russian Missiles, Official Says

The United States cannot guarantee that it will provide India a waiver from sanctions if it purchases major weapon and defense systems from Russia, a top Pentagon official said on Wednesday, ahead of a high-level dialogue between Washington and New Delhi.

The United States has imposed sweeping sanctions on Russia, under which any country engaged with its defense and intelligence sectors could face secondary U.S. sanctions.

However, a new defense bill gives the president the authority to grant waivers in case of national security interests.

Randall Schriver, the Pentagon’s top Asia official, said there was an “impression that we are going to completely protect the India relationship, insulate India from any fallout from this legislation no matter what they do.” 

Media reports from the region have suggested that India would get a waiver.

“I would say that is a bit misleading. We would still have very significant concerns if India pursued major new platforms and systems (from Russia),” Schriver said at a think tank event.

“I can’t sit here and tell you that they would be exempt, that we would use that waiver, that will be the decision of the president if he is faced with a major new platform and capability that India has acquired from Russia,” he added.

The Indian embassy in Washington did not immediately respond to a request for comment.

U.S. Defense Secretary Jim Mattis has publicly been a strong proponent of granting India waivers.

The United States is concerned about India’s planned purchase of Russian S-400 surface-to-air missile systems, Schriver said. Russia has said it expects to sign a deal with India later this year on the sale.

On Tuesday, Mattis said the United States was also concerned about Turkey’s purchase of the Russian missile defense system, which cannot be integrated into NATO. Schriver said the United States was willing to talk to India about potential alternatives.

Senior U.S. officials are expected to go to India next week for high level talks, agreed upon by U.S. President Donald Trump and Indian Prime Minister Narendra Modi last year. 

The meeting was originally planned for April but was postponed after Trump fired Rex Tillerson as secretary of state. Washington put off the meeting for a second time in June.

 

Germany, Seeking Independence From US, Pushes Cybersecurity Research

Germany announced a new agency on Wednesday to fund research on cybersecurity and to end its reliance on digital technologies from the United States, China and other countries.

Interior Minister Horst Seehofer told reporters that Germany needed new tools to become a top player in cybersecurity and shore up European security and independence.

“It is our joint goal for Germany to take a leading role in cybersecurity on an international level,” Seehofer told a news conference with Defense Minister Ursula von der Leyen. “We have to acknowledge we’re lagging behind, and when one is lagging, one needs completely new approaches.”

The agency is a joint interior and defense ministry project.

Germany, like many other countries, faces a daily barrage of cyberattacks on its government and industry computer networks.

However, the opposition Greens criticized the project. “This agency wouldn’t increase our information technology security, but further endanger it,” said Greens lawmaker Konstantin von Notz.

The agency’s work on offensive capabilities would undermine Germany’s diplomatic efforts to limit the use of cyberweapons internationally, he said. “As a state based on the rule of law, we can only lose a cyberpolitics arms race with states like China, North Korea or Russia,” he added, calling for “scarce resources” to be focused on hardening vulnerable systems.

Germany and other European countries also worry about their dependence on U.S. technologies. This follows revelations in 2012 by U.S. NSA whistleblower Edward Snowden of a massive spying network, as well as the U.S. Patriot Act which gave the U.S. government broad powers to compel companies to provide data.

“As a federal government we cannot stand idly by when the use of sensitive technology with high security relevance are controlled by other governments. We must secure and expand such key technologies of our digital infrastructure,” Seehofer said.

Merkel Arrives in West Africa for Visit Focusing on Business, Migrants

German Chancellor Angela Merkel arrived in Senegal late Wednesday on a three-nation West African visit focusing on economic development and migration.

Merkel is meeting with the presidents of Senegal, Ghana and then Nigeria as she presses for further investment in a region that is a source of many of the migrants who make their perilous way toward Europe.

Migrant arrivals in Europe across the Mediterranean from Africa and Turkey are at their lowest level in five years, but the issue remains sensitive. Merkel, who refused to close Germany’s borders at the height of the migrant crisis in 2015, has toughened her stance recently to salvage her government from a rift over the issue.

Some in Europe hope that investing more in West Africa will help keep people in a region plagued with unemployment, dodgy infrastructure, rising extremism and now the effects of climate change from leaving.

“We must fight illegality but also create legality and conditions for work here on the ground,” Merkel said after meeting with Senegalese President Macky Sall, according to her spokesman Steffen Seibert. “We want to help with the future.”

A day before leaving for Africa, the German leader hosted U2 frontman Bono for a discussion on Africa and its “development opportunities,” the Chancellery said in an Instagram post .

Senegal and Ghana are two of Africa’s fastest-growing economies and among its most stable countries. Both have signed on to the Compact with Africa initiative to promote private investment that Germany launched last year during its presidency of the Group of 20 industrialized and developing nations.

Nigeria is West Africa’s regional power, Africa’s most populous country and one of the continent’s top oil producers. It is plagued, however, by widespread corruption and security threats that include Boko Haram and Islamic State-linked extremists in the north, violent clashes between herders and farmers in the central region and oil militants in the south.

Merkel on Tuesday spoke with the new leader of another of Africa’s top economies, Ethiopian Prime Minister Abiy Ahmed, and invited him to visit, his chief of staff Fitsum Arega said on Twitter. Germany is just one of the countries responding with curiosity to the recent reconciliation between Ethiopia and neighboring Eritrea, with Germany’s development minister visiting the long-reclusive country last week.

US Economy Grows a Bit Faster Than First Thought

The U.S. economy expanded at a 4.2 percent annual rate in April, May and June, the Commerce Department said Wednesday.

The second-quarter growth figure for gross domestic product was one-tenth of a percentage point higher than initial estimates.

“The economy is in good shape,” said PNC Bank Chief Economist Gus Faucher. He wrote that this was the best “year-over-year increase in three years.”

But Faucher also said growth above 4 percent was “unsustainable” and that the economy was “set to slow somewhat in the second half of 2018,” hitting 3.4 percent growth for the whole year. He predicted U.S. economic growth would slow further in 2019 and 2020 as the “stimulus from tax cuts and spending increases fades.”

U.S. President Donald Trump cheered the news:

But Senate Minority Leader Chuck Schumer, a New York Democrat, had a different take on the report.

“No amount of President Trump tweets can change the fact that real wages are declining,” he said in a statement, adding that the cost of living — particularly gas and health care costs, “thanks in large part to Republicans and the Trump administration” — is “continuing to climb.”

Wednesday’s report from the Commerce Department was a routine revision; such changes are made as more complete data become available.

Growth figures were boosted by a decline in imports, particularly petroleum, and by some temporary factors.

One of those factors was a surge in soybean exports, which were rushed at a faster-than-usual pace to beat tariffs imposed by China in retaliation for new tariffs imposed by the Trump administration on Chinese goods.

The new second-quarter figures were nearly double those of the first quarter.

UN Rights Chief: Vowed US Cuts Wouldn’t be ‘Fatal’ to Office

The U.N. human rights chief says threatened U.S. funding cuts wouldn’t be “fatal” for his office, but says he hopes other countries won’t follow suit.

Zeid Ra’ad al-Hussein insisted “the office will continue to survive” even if the U.S. carries out the promise made by U.S. National Security Adviser John Bolton in an interview with The Associated Press last week.

 

Zeid told reporters Wednesday that “clearly what one doesn’t want to see is a whole series of withdrawals and withdrawal of funding.”

 

Bolton’s pledge that the U.S. will cut funding to the rights office, and the U.N.’s top human rights body was the latest Trump administration salvo against U.N. institutions.

 

The U.S. is the U.N.’s largest single donor, providing about 22 percent of its budget.

 

 

Pope Laments Abuse in 1st Post-bombshell Vatican Appearance

Pope Francis lamented Wednesday how Irish church authorities failed to respond to the crimes of sexual abuse, speaking during his first public appearance at the Vatican after bombshell accusations that he himself covered up for an American cardinal’s misdeeds.

Francis presided over his weekly general audience in St. Peter’s Square and spoke about his weekend trip to Ireland, where the abuse scandal has devastated the Catholic Church’s credibility.

The final day of the trip was overshadowed by release of a document from a retired Holy See diplomat accusing Vatican authorities, including Francis, of covering up for ex-Cardinal Theodore McCarrick despite knowing for years that he regularly slept with seminarians.

The author of the document — retired Vatican ambassador to the U.S., Archbishop Carlo Maria Vigano — said Francis should resign for his complicity in the McCarrick scandal, which has implicated two decades’ worth of U.S. and Vatican church leaders.

 

Francis referred Wednesday to the Irish culture of cover-up, but he omitted from his remarks a line in his prepared text noting how he had prayed in Ireland for the Virgin Mary to intervene to give the church strength to “firmly pursue truth and justice” to help victims heal.

 

U.S. bishops, as well as rank-and-file Catholics, have called for an independent investigation to find out who knew about McCarrick’s abuse and when, and how he was able to rise through the ranks even though it was an open secret that he regularly invited seminarians to his New Jersey beach house and into his bed.

Francis last month removed McCarrick as a cardinal and ordered him to live a lifetime of penance and prayer after a U.S. church investigation determined that an allegation he groped a teenage altar boy in the 1970s was credible.

 

Vigano’s 11-page j’accuse alleges that Francis knew of McCarrick’s penchant for adult seminarians starting in 2013, but rehabilitated him from sanctions that Pope Benedict XVI had allegedly imposed on him in 2009 or 2010. The claims have shaken Francis’ five-year papacy.

 

There is ample evidence, however, that the Vatican under Benedict and St. John Paul II also covered up the information, and that any reported sanctions Benedict imposed were never enforced since McCarrick travelled widely for the church during those years, including to Rome to meet with Benedict and celebrate Mass with other U.S. bishops at the tomb of St. Peter.

 

Vigano provided no evidence that Francis had lifted the alleged sanctions, saying only that McCarrick announced after a meeting with the pope that he was going to China.

 

But he said McCarrick had become a close adviser to Francis, who was seeking to appoint more pastorally-minded bishops to the U.S. church, which he believed had become too ideologically driven by right-wingers.

 

Britain Seeks Ways to Continue Trading with Iran

British officials have been turning to Japan for tips on how to dodge American sanctions on Iran, according to local media.

Britain is already seeking from Washington exemptions from some U.S. sanctions, which are being re-imposed by President Donald Trump because of the U.S. withdrawal earlier this year from a controversial 2015 nuclear deal with Tehran. The British are especially keen to maintain banking links with Iran and to import Iranian oil.

According to local media, U.K. officials have been asking their Japanese counterparts how they managed in the past to sidestep some aspects of the pre-2015 sanctions regime, which allowed Tokyo to sign oil deals with Iran as well as insurance contracts without incurring U.S. penalties.

Re-imposed U.S. sanctions penalize any foreign companies that deal with Iran by barring them from doing business in America. That threat has already persuaded more than 50 Western firms to shutter their operations in Iran, including French automakers Renault and Peugeot and the French oil giant Total as well as Germany’s Deutsche Bahn railway company and Deutsche Telekom.

Seeking waivers

British ministers have publicly announced that they are hoping to secure waivers from sanctions for oil imports, tanker insurance and banking. There is particular concern, say British officials, about the position of a gas field 240 miles from Aberdeen which is jointly owned by BP and a subsidiary of Iran’s state-controlled oil company.

According to The Times newspaper, British diplomats and Treasury officials have discussed with their Japanese counterparts what options they may have of evading penalties, if British firms continue to trade with Iran. Britain’s Foreign Office hasn’t commented on the specific claims in report. But in a general statement it says: “We are working with European and other partners, to ensure Iran continues to benefit from sanctions relief through legitimate business, for as long as Iran continues to meet its nuclear commitments under the deal.”

Faltering Iranian economy

On Tuesday, Iranian president Hassan Rouhani was grilled by the country’s lawmakers, who for the first time in his five-year tenure called him before parliament to answer questions about the country’s faltering economy amid the tightening U.S. sanctions.

They asked him about high unemployment, rising food prices and the collapsing value of the Iranian currency. Rouhani, who overcame the opposition of hardliners in the first place to sign the 2015 nuclear deal with the U.S. and other world powers, insisted Iran would overcome the “the anti-Iranian officials in the White House.”

He added: “We are not afraid of America or the economic problems. We will overcome the troubles.” His answers didn’t reassure lawmakers, who voted to reject most of them. Earlier this month the parliament impeached the economy and labor ministers amid growing anger about the economy.

In order to try to keep open financial channels with Tehran and facilitate Iran’s oil exports, the European Union has taken steps to counter renewed U.S. sanctions, including forbidding EU citizens and firms from complying with them.

The European Commission updated a blocking statute on August 7, which bans companies from observing the sanctions — unless expressly authorized by Brussels to do so. It would allow EU firms to recover damages arising from the sanctions. But many companies say they are fearful of losing current or potential business in the U.S.

“Under these conditions it is very difficult,” according to the Director for International Relations at BusinessEurope, a lobby group, Luisa Santos. She says even small and medium-sized businesses which don’t trade with U.S. will face significant challenges because they will need financing from Western banks.

The first round of U.S. nuclear sanctions on Iran officially snapped back into place earlier this month but the more biting sanctions will be re-imposed on November 4 as Washington seeks to pummel the Iranian economy. The first phase U.S. sanctions prohibit any transactions with Iran involving dollars, gold, precious metals, aluminum, steel, commercial passenger aircraft, shipping and Iranian seaports.

 

Earlier in August, Woody Johnson, the U.S. ambassador to Britain, cautioned there would be trade consequences for Britain, which he described as the closest U.S. ally, unless London breaks with the EU and abides by the re-imposed sanctions on Tehran.

The envoy also delivered a clear ultimatum to British businesses, instructing them to stop trading with Iran or face “serious consequences.”

Trump’s decision in May to withdraw from the 2015 nuclear deal, signed by his predecessor Barack Obama, in which Tehran agreed to nuclear curbs in return for sanctions relief, paved the way for the restoration of unilateral American economic penalties on Iran.

The U.S. administration blames Iran for fomenting instability in the Middle East and encouraging terrorism. Trump has described the 2015 nuclear deal, officially known as the Joint Comprehensive Plan of Action (JCPOA), as a “horrible, one sided” agreement.

U.S. officials say Iran has used the money going into the country after the 2015 deal, when sanctions were eased, not to improve the lives of ordinary Iranians but to increase spending on the military and proxy forces in the Middle East, including Hezbollah in Lebanon and militants in Yemen.

China Struggles to Curb Its Reliance on US Buyers, Suppliers

Faced with plunging U.S. orders, surgical glove maker Ren Jiding is hunting for new markets amid Chinese government calls to reduce reliance on the United States. But no other market can absorb the 60 percent of his sales that went to American customers last year.

“Other countries import much less than the United States,” said Ren, a co-owner of Hongyeshangqin Medical Science and Technology Co. Ltd. in the eastern city of Zibo.

From medical products to smartphone chips to soybeans, Beijing is responding to President Donald Trump’s tariff hikes by pushing companies to trade more with other countries. But there are few substitutes for the United States as an export market and source of technology for industries including telecom equipment makers that Chinese leaders are eager to develop.

Beijing has announced tariff cuts and other changes while rejecting U.S. demands to scale back plans such as “Made in China 2025,” which calls for state-led creation of Chinese champions in robotics, biotech and other fields. American leaders say those violate Beijing’s market-opening promises and might erode U.S. industrial leadership.

The response highlights the cost the ruling Communist Party is willing to pay in lost sales and jobs to stick to plans that are fueling conflict with Washington, Europe and other trading partners.

​’Fundamental’ to growth

“China sees its technology and industrial policies as fundamental to its growth,” Tianjie He of Oxford Economics said in an email. “It is thus hard to see China’s leadership committing to significant changes.”

Trump has raised duties on $50 billion worth of Chinese imports, including ultrasound scanners and industrial components that Washington says benefit from improper policies. China retaliated with similar penalties.

The U.S. is poised to raise duties on $200 billion worth of imports, including the gloves made by Ren’s company. Beijing has issued a list of American goods for retaliation.

The impact on China is “small and is containable, at least for the time being,” said Vincent Chan of Credit Suisse. He said the “worst case” outlook if all threatened U.S. tariff hikes go ahead would cut China’s growth by 0.2 percentage point this year and 1.3 percent in 2019.

Chinese leaders have tried to cushion the blow to their own economy by targeting American goods its importers can get from other countries — soybeans from Brazil, gas from Russia, cars from Germany and fish from Vietnam.

Beijing has promised to use revenue from the higher tariffs to help struggling exporters and has ordered banks to lend more freely to them.

The biggest jolt so far came from Beijing’s cancellation of orders for soybeans, the biggest American export to China at $21 billion last year. That hammered farm states that voted for Trump in the 2016 election. It also pushed up prices for Chinese farmers that use soybeans for animal feed and food processors that crush them for cooking oil.

That could be a windfall for Brazil. But China already is its top market and consumes two-thirds of the global supply. Chinese total imports last year of 95 million metric tons were 50 percent more than the South American giant’s entire exports.

​Few sources

“The Chinese can talk all they want about finding other sources of soybeans,” but 80 percent come from the United States, Brazil and Argentina, said Michael Cordonnier, president of Soybean & Corn Advisor Inc., a U.S. research firm.

“If you want to import soybeans, it generally must be from one of those three countries,” Cordonnier wrote in an email.

Regulators also cut import duties on automobiles on July 1 but raised them on vehicles from the United States. That helps luxury brands that import from Germany and Japan.

Replacing markets for Chinese exporters that support tens of millions of jobs will be harder.

The United States bought $430 billion of China’s exports last year, or 20 percent of the $2.2 trillion total. The No. 2 market was the 28-nation European Union at $370 billion.

“We can’t afford to lose the U.S. market,” said David Hu, general manager of Sinohood Bags Factory Ltd. in the southeastern city of Yiwu.

Americans bought 40 percent of Hu’s canvas tote bags last year, including the most profitable customized versions with Christmas and other designs.

“What we export to Europe is lower-end products with lower prices,” said Hu. “We could explore the Indian, Vietnamese or Philippine markets. But the prices they offer would be too low.”

Chinese officials point to potential markets in the Belt and Road Initiative, a multibillion-dollar plan led by President Xi Jinping to boost trade by building ports, railways and other infrastructure across Asia to Europe.

That has brought a flood of contracts to Chinese state-owned builders, but complaints about costs have hurt its appeal. Prime Minister Mahathir Mohamad of Malaysia announced this month the cancellation of plans for Chinese-built projects, including a $20 billion rail line.

“There is potential for development in areas such as Central Asia, Eastern Europe, Africa and South America. But their problems are development imbalance and economic instability,” said Li Yong, a senior fellow at the China Association of International Trade, an industry group.

​Focus on diversification

Local officials have met with exporters to exhort them to “diversify markets,” according to the state press.

Authorities in the central city of Jingzhou visited exporters to help with customs forms, financing and other details, the website China Industry and Commerce News said.

Ren, the surgical glove maker, said his 300-employee company was looking at Europe and developing countries, but demand was sluggish.

Some companies are confident of keeping their U.S. market share. That reflects the possible success of official efforts to develop higher-tech goods instead of competing on price alone.

The general manager of Yihua Electronic Equipment Co. in southern China’s Guangdong said the tariffs should not affect sales of its digital soldering guns, one-fifth of which are sold to the United States.

“With the 25 percent tariffs, ours still are cheaper than similar German- or Japanese-made products,” said the manager, who would give only his surname, Gou. “We are not producing something like shoes and clothing that could be easily replaced.”

Trump’s pressure could encourage Beijing to throw even more resources at nurturing its own technology creators.

China’s search for non-U.S. suppliers could help companies such as Taiwanese chipmaker MediaTek Inc. But redesigning a phone or network gear and then gaining regulatory and customer approval can take a minimum of three to five years.

“For now,” said He of Oxford Economics, “China remains technologically dependent on the U.S.”

After Flood, Tourism in India’s Kerala Left a Muddy Mess

More than a week after the floodwater began subsiding, animal carcasses are  still floating in Kerala’s backwaters, and in places a nauseating stench rises like a wall when the wake from a passing boat breaks the surface.

These inland lagoons running parallel to the coast are one of the biggest tourist draws in India’s most southwesterly state, but the stain of death and devastation wrought by Kerala’s worst flood in a century will take longer than a season to wash away.

The quaint towns and villages scattered between the lush forests and paddy fields bordering the backwaters are now communities in despair.

Houses in low-lying areas are still submerged, roads are waterlogged and the sewage from drains have washed into channels that are too slow-moving to effectively flush out the effluent.

Sudarsanan T.K., a houseboat owner in the town of Alappuzha,  had been looking forward to the peak tourist season, but as his home disappeared under 2.5 meters (8 feet) of water his family now have to live aboard the boat he would otherwise be renting to tourists from Europe, China, Malaysia and India.

“I’ve nothing left, but this houseboat. I don’t know how I can repay my bank loan in this condition. The bank may take back my boat. I will have nothing at all then,”  Sudarsanan, a 64-year-old father of two, told Reuters.

​Some 1,500 houseboats are tied up at Alappuzha, going nowhere, with many of the owners still paying off loans taken to buy the boats.

Sudarsanan owes about $8,600 on the loan taken eight years ago to buy the boat, and he could have earned up to $7,000 by December if the deluge hadn’t washed away his hopes.

Hundreds of people perished in the flood and more than one million of Kerala’s 35 million people were forced to abandon their homes and take shelter in relief camps.

Blessed with natural beauty, fertile land and bountiful seas, Kerala has been dubbed “God’s own country” by its people, but the Marxists running the state government reckon it will need $3.57 billion to rebuild over the next two years.

“Kerala’s GDP growth may fall by 2 percent,” state Finance Minister T.M. Thomas Isaac told Reuters, forecasting growth of 6 percent for the financial year ending next March.

Crops have been lost, the construction industry was dead for a month, and tourism, which contributes 10 percent of the state’s economy but accounts for about 25 percent of jobs creation, has been badly hit.

Festival washout

For discerning tourists looking for a more laid back Indian experience, Kerala has it all — long sandy beaches, lazy waterways, charming, historic towns like Kochi and the cool, forested hills of the Western Ghats.

Kerala doesn’t draw numbers like the northern tourist circuit, the so-called “Golden Triangle” running from New Delhi to the Taj Mahal in Agra, and Jaipur’s palaces in the desert state of Rajasthan, but it has carved out a sizable niche.

Last year, one million foreigners visited Kerala, along with 15 million domestic tourists, but state government and industry officials reckon the flood will result in losses for the tourism sector of $357 million.

The floods struck just as Kerala was gearing up for Onam,

the harvest festival which is one of the highlights of the state’s cultural calendar.

Festivities, including the spectacular Vallam Kali races involving traditional war canoes, some manned by more than 100 paddlers, were postponed.

“Kerala has lost out on one of the best seasons, as the calamity struck during the 10-day run up to Onam,” said Ranjini Nambiar, who heads a travel consultancy.

Thousands of volunteers have joined a clean-up campaign mounted by the state, and Shilendran M., an executive with the CGH Earth luxury hotel chain, expected some kind of order to be restored within the next few weeks.

“The state administration is working on a war footing,” said Shilendran, whose group has more than a dozen properties in Kerala. “We are limping back to normal.”

Hardly anywhere in the state escaped the calamity.

Ernakulam district, the biggest industrial and tourism contributor to Kerala’s economy and home to the historic city of Kochi, suffered major damage, and its busy international airport was shut for nearly two weeks.

Munnar, a hill resort overlooking the tea and cardamom plantations high in the Ghats was cut off, as bridges were washed away and landslides blocked roads.

Once every dozen years a bright purplish-blue bell-shaped flower called the Neelakurinji, blossoms on the slopes around Munnar — and this was one of those years.

The state tourism had marketed 2018 as the Kurunji year, but people in Kerala are more likely to remember the mud.

US Congress Skeptical of Trump’s Mexico Trade Deal

President Donald Trump’s trade deal with Mexico could struggle to win approval from Congress unless Canada comes on board, lawmakers from both parties said on Tuesday, saying support from Democrats would be needed to pass a purely bilateral deal.

Trump unveiled the Mexico deal on Monday and threatened to slap tariffs on Canadian-made cars if Canada did not join the revamp of the trilateral North American Free Trade Agreement (NAFTA), which Trump has long criticized.

If Trump, a Republican, tries to get the Senate to vote in favor of a bilateral deal as a replacement for NAFTA, he will face an uphill struggle to win passage, lawmakers said. Some lawmakers said only a trilateral pact would be eligible for fast-track, 51-vote Senate approval.

A bilateral deal, on the other hand, would need 60 votes and that would require some support from Democrats, who likely would be reluctant to help Trump, they said. There are now 50 Republican-held seats in the 100-member Senate.

To get fast-track Senate ratification, “the administration must also reach an agreement with Canada,” said Republican Senator Pat Toomey in a statement.

“NAFTA was a tri-party agreement only made operative with legislation enacted by Congress,” said Toomey, a member of the committee that oversees trade policy.

“Any change, such as NAFTA’s termination, would require additional legislation from Congress. Conversion into a bilateral agreement would not qualify for … ‘fast track’ procedures and would therefore require 60 votes in the Senate.”

The White House did not immediately respond to a request for comment about fast track treatment for the Mexico deal. Canada’s top trade negotiator arrived in Washington on Tuesday for talks with her Mexican and U.S. counterparts, in a bid to remain part of the trade pact.

Democratic Senate Leader Chuck Schumer said a bilateral deal would face “serious legal concerns,” while he also questioned a lack of details on the terms of the Mexico pact

“I’m a little worried that this one is like North Korea. They have a nice announcement, but then we don’t see the details,” Schumer told reporters in a Capitol hallway. U.S. stock markets surged on Monday after Trump said he had reached an understanding with Mexico. On Tuesday, stocks had given up some of their early gains by the closing bell.

Senator Ron Wyden, the senior Democrat on the trade committee, said: “We know very few details right now. There are real questions about whether this is even enforceable … We are far from being done on this and the fact is you cannot really move this substantively without the Canadians.”

In the House of Representatives, Democrat Bill Pascrell urged Republicans in a statement to convene a bipartisan House trade council to advise the White House.

 

Russia’s Putin Hints He’ll Dilute Unpopular Pension Reform

President Vladimir Putin hinted on Tuesday he was ready to soften an unpopular proposal to reform the pension system which has pushed his approval rating down to its lowest level in more than four years.

He said he would deliver his views in a public statement on the issue, perhaps as soon as Wednesday, adding he was aware of public unhappiness about the proposed reform and decisions had to be undertaken cautiously.

“I ask you not to forget that our decisions will affect the fates of millions of people and must be fair. One should not act mechanically, formally, but only take a balanced and cautious approach,” Putin said.

Lawmakers, in a preliminary vote in July, backed a government proposal to sharply raise the retirement age, part of a controversial budget package designed to shore up state finances.

Putin, who once promised never to raise the retirement age, had until now been careful to distance himself from the proposed reforms, which envisage raising the retirement age to 65 from 60 for men and to 63 from 55 for women.

Polls show that around 90 percent of the population oppose the proposed reform.

But on Tuesday he told a government meeting in the Siberian city of Omsk that he would soon intervene.

“In the nearest future, maybe even tomorrow, I will formulate my attitude [to the reform] in detail and will make the respective statement.”

Putin said any decision on the pension system had to be balanced and cautious. He said he was aware of the public’s extremely negative reaction to the proposed reform.

“Of course, all this has drawn a predictable reaction, a rather sharp discussion in public,” Putin said, adding that any changes in the pension age must provide a decent standard of living for Russia’s 147 million-strong population.

‘Politically sensitive’

The retirement age proposal is politically sensitive for Putin, who was re-elected in March, because it has prompted a series of protests across Russia since it was announced on June 14, the day Russia played the first match of its soccer World Cup.

According to opinion polls, Putin’s approval ratings have fallen to levels last seen before Russia’s 2014 annexation of Ukraine’s Crimea which provided the Russian leader with a popularity boost.

Putin’s spokesman on Tuesday dismissed speculation that Putin had been pushed into addressing the issue by a drop in his approval ratings, however.

While Putin said authorities could not act “routinely” and “formally” when it came to reforming the pension system, he made clear that some kind of reform was needed though.

“… We need to take into account the current situation in the economy and the labor market, we must understand what the future holds for the country in 10, 20 and even 30 years,” Putin said.

He said he had asked the government to consult with political parties, public organizations and regional administrations to review the legislation before its second reading in the State Duma, the lower house of parliament.

Lawmakers passed the bill in the first reading in July. To become law, the bill must pass three readings in the State Duma and must then be approved by the upper house and finally signed into law by the president.

 

Russia Reinforces Naval Forces in Mediterranean off Syrian Coast

Russia has deployed several frigates to the Mediterranean via the Bosphorus, an analysis of shipping traffic showed, part of what a Russian newspaper on Tuesday called Moscow’s largest naval buildup since it entered the Syrian conflict in 2015.

The reinforcement comes as Russia’s ally, Syrian President Bashar al-Assad, is believed to be considering an assault on the last big rebel-held enclave, Idlib in the north.

Russia has accused the United States of building up its own forces in the Middle East in preparation for a possible strike on Syrian government forces.

On Saturday, the Admiral Grigorovich and Admiral Essen frigates sailed through Istanbul’s Bosphorus towards the Mediterranean, Reuters pictures showed.

The day before, the Pytlivy frigate and landing ship Nikolai Filchenkov were pictured sailing through the Turkish straits that connect the Black Sea with the Mediterranean. The Vishny Volochek missile corvette passed through earlier this month.

The Izvestia newspaper said Russia had gathered its largest naval presence in the Mediterranean Sea since it intervened in Syria in 2015, turning the tide in Assad’s favor.

The force included 10 vessels, most of them armed with long-range Kalibr cruise missiles, Izvestia wrote, adding that more were on the way, and that two submarines had also been deployed.