Russia’s Policy in Syria, Afghanistan Clashing with US

Multi-nation talks on the prospects for Afghan security and national reconciliation, the third such round since December, began Friday in Moscow.

Eleven countries are taking part in discussions, including Afghanistan, China, Iran, Pakistan and India. Former Soviet Central Asian states have been invited to attend for the first time.

The United States was also invited to the Moscow talks but Washington didn’t attend, saying it was not informed of the agenda beforehand and was unclear of the meeting’s motives.

Just days after U.S. Secretary of State Rex Tillerson’s frosty reception by the Kremlin, which refused to stop support for Syrian President Bashar al-Assad, the two countries are also at odds on how to fight the Islamic State group in Afghanistan.

Russia’s increasingly assertive foreign policy in Syria and Afghanistan is clashing with U.S. goals, but analysts say both countries are needed for a negotiated peace.

“I think it’s clear to, even to [the] Trump administration, that without cooperation and collaboration of Russia, it’s impossible to move forward or to achieve any meaningful result — be it on Syria or be it in Afghanistan,” Victor Mizin, of the Moscow State Institute of International Relations, told VOA.

But others have stressed that this collaboration is possible even if the U.S. and Russia remain firm on some of their respective positions.

“There is certainly always room for cooperation both in Syria and Afghanistan,” Dmitry Verkhoturov, of the Center on Modern Afghanistan Research, told VOA. “But from my viewpoint, the key factor of this cooperation is that both sides, Russia and the U.S., should mutually recognize the right for an independent opinion, independent position, and an independent policy.”

Charles Kupchan, former senior director for European Affairs on the staff of the National Security Council in the Obama administration, says the Trump White House is still finding it’s footing in regard to Russian relations.

“I don’t think that there is a single point of view in the White House — in fact, one senses they are still finding their way through the woods. And whether it is on Russia or Syria or Arab-Israeli issues, different days bring different policy statements,” he told VOA’s Russian Service. “On the Russia account, I do think there has been a sobering up, in the sense that as a candidate and as an early president, I think [President Donald] Trump had a somewhat naive view about how easy it would be to reset the relationship with Russia. That he felt he could go in there as a businessman and sit down shoulder-to-shoulder with President [Vladimir] Putin and resolve everything.”

Having spent three years as a special assistant to the former U.S. president, Kupchan said stabilizing Russian ties is a notoriously difficult undertaking.

“Having worked with Russians on Ukraine and other issues, it’s tough going, and I think what the Trump administration is finding is simply that: It’s tough to find common ground with the Kremlin, and that the road ahead is likely to be one of differences of opinion rather than a reset that leads to a lasting rapprochement.”

Thursday, the U.S. dropped its largest non-nuclear bomb on a reported Islamic State militant complex in the eastern Afghan province of Nangarhar.

Misha Gutkin of VOA’s Russian Service contributed to this report.

India’s Most Ambitious Tax Reform Set to Roll Out July 1

More than a decade after it was proposed, India’s most ambitious tax reform measure is set to roll out in six weeks following the passage of a law that will replace a plethora of confusing levies with a single, nationwide tax.  

The new goods and services tax (GST) will unite the world’s fastest growing economy into a common market of 1.3 billion people.

The measure is seen as a major achievement for Prime Minister Narendra Modi, who struggled for two years to build a political consensus.

 The government says the GST will be implemented from July 1 after state legislatures ratify it.   

 The new tax is expected to make it vastly easier to do business as it dismantles tax checkpoints at every state border. Businesses have often complained that India’s complicated tax system leaves them grappling with a mesh of separate duties levied by each of the country’s 29 states, and goods are often stranded for hours or even days at state borders as payments are worked out.

 By making distribution more efficient and less expensive, Ankur Bisen at New Delhi based consultancy, Technopak, sees big benefits for consumer-oriented businesses, which have to move goods across state lines in the vast country. 

Another huge benefit will be increased transparency. “It will have implications on corruption because taxation regime will not be vague anymore, it will be very clearly defined,” says Bisen.

For the government, the GST is expected to improve tax compliance and draw more people into the tax net in a country where tax evasion is common. It will also make India more attractive for foreign investors by simplifying rules for a huge and increasingly attractive market.

The government estimates the new tax will boost economic growth by about half a percentage point in its first year of implementation and in the long run by as much as 2 percent.

However several economists say that the political compromises that had to be struck win approval of the new tax mean the sweeping benefits India had hoped to see may not accrue in the short run.  

Taxes will be levied at four levels – five, 12, 18 and 28 percent. Many say the 18 percent and 28 percent tax rates are too high.  

 “It could potentially have been a transformative measure if the structure of GST would have been characterized by a large base and low and single rate,” says D.K. Srivastava at consultancy Ernst and Young. But, he says, “it is going as a multiple-rate system and some of the rates are very high and the tax base is still narrow. Therefore it is a kind of a fragmented GST. ”

Despite the shortfalls, Srivastava says that “given the complications of the size of the Indian economy, it might be useful to start off with a functioning model and then go on reforming it as matters progress.”

Many also warn against a hasty implementation, saying that rushing ahead with a July 1 deadline could make it difficult to handle the transition in a country which has always struggled with bureaucratic ineptitude.

Many businesses, which had long clamored for such a tax, are asking the government for more time to prepare for the switch, saying six weeks is too little. They worry that the tax rates for various products have still be to be decided.

Others point out that the GST will be serviced by state-of-the-art technology and an electronic portal where taxpayers can register, eliminating the conventional and discretionary role of tax authorities.

Turkey Ponders Re-evaluating, Suspending All Migrant Deals with EU

Turkey says it may re-evaluate or suspend all migrant agreements with the European Union if it does not receive a positive response from the bloc on visa-free travel for Turks.

Turkish Foreign Minister Mevlut Cavusoglu said during an interview with broadcaster A Haber Friday the migrant deal and visa liberalization were a package, and therefore it was Turkey’s right to re-evaluate or suspend those if one element was not fulfilled.

Cavusoglu also said Turkey had no issues with Russia at present and would strengthen cooperation on a cease-fire and political solution in Syria, after a chemical attack blamed on Syrian government forces killed about 100 civilians in rebel-held Idlib province.

The attack prompted the United States to launch dozens of Tomahawk cruise missiles from U.S. Navy destroyers in the Mediterranean on a Syrian air base.

The strike, the first direct U.S. action against Syrian President Bashar al-Assad, and President Donald Trump’s biggest military decision since taking office, marked a dramatic escalation in U.S. involvement in Syria’s six-year war.

 

Seasonal Businesses Scramble to Stay Afloat Without Foreign Workers

Along northeastern Cape Cod off the coast of Massachusetts, April doesn’t usually equate with sunshine and sandcastles. The month is mostly a time of waiting for the fog and chill to lift off the Atlantic Ocean and the tourists to arrive.

But this year is a problem for seasonal businesses, whose model is built around five-to-six-month, low-skilled jobs in areas like hospitality. Few Americans are willing to fill them and now, thousands of foreign seasonal workers may not be allowed into the U.S. to take them.

Changes to the U.S. temporary work visa program, called H2B, are keeping out the workers that businesses count on.

For affected businesses, the financial loss could be plenty.

“It could be 20 percent,” said Allen Sylvester, president of American Tent & Table, Inc., a family-owned tent rental and party accessory business in Cape Cod, Massachusetts.

Sylvester, who has been with the company since 1996, says it earns roughly 85 to 90 percent of its profits in five months — the region’s outdoor wedding season. Fully staffed, the company employs seven to eight Americans and 13 H2B visa workers.

Normally it’s the former group Sylvester has a hard time hiring. But last September, Congress failed to renew a provision that effectively quadrupled the number of H2B visas available in 2016 by not counting returnees against the annual cap. This year, instead of potentially 264,000 visas, there are 66,000 — half allocated in the spring, the other half in the fall.

Businesses in colder areas like Cape Cod, which typically have later start dates, find themselves at a loss. By the time many could complete their visa applications, the cap had been reached.

“Instead of bringing 3,000 workers here, we right now are bringing 300 workers,” said Jane Nichols Bishop, president of Peak Season Workforce, a family-owned business that helps local companies secure annual H2B visas.

Bishop, who calls herself “Mama Visa,” says the 90-day application process that businesses must follow to gain seasonal employment is stringent, including evidence of advertising to recruit American workers.

Of the 171 applications she personally filed for clients, Bishop says 24 made their way through the Department of Homeland Security before all the visas were gone.

Why not hire more Americans?

At 3.4 percent, the February unemployment rate in Massachusetts is lower than the current national average, 4.5 percent, according to data from the Bureau of Labor Statistics.

But as Falmouth, Massachusetts, resident Paul Skudder said, the numbers don’t paint the whole picture on Cape Cod, a community with a growing number of retirees and decreasing number of youth.

“There is a limited number of job opportunities on the Cape for college-educated professional or near professional people, which overall leads to a little bit of an exodus of bright, educated young people,” Skudder said.

Eligible job seekers who are willing to accept low-skilled employment, generally need a permanent source of income. And students can offer just three months of labor during their summer breaks, not five or six.

The well-being of the younger population is also a factor. In 2015, Cape Cod suffered the highest per capita death rate by opioid overdose in Massachusetts and remains one of the most affected areas in the country.

“A lot of the kids I used to know have now passed away,” said Prince Wright, who attended high school in Falmouth. “That’s the big problem right now … most of our locals are not coming in no more. Either they’re locked up or they moved away because of the changes on the Cape.”

More effort needed?

But along Main Street in the Cape’s largest town, not all are convinced that businesses are trying their best to hire local.

“It’s good for the [foreigners] that are coming over here on work visas, but it also takes away from the people that are living on the streets that can work,” said Mary Richard. “I just think it’s hard on the people here too.”

Politicians are divided on the H2B visa program, seeing it as either economically exploitative or a job-killer for Americans.

Republicans, who control both chambers of Congress, send mixed messages. Attorney General Jeff Sessions, the country’s top law enforcement official, has called the H2B program “detrimental to wages and job opportunities of American workers.” But Donald Trump, before he was president, employed H2B workers during peak resort season at his Florida golf club, Mar-a-Lago.

H2B-reliant businesses worry that the visa is unfairly lumped into Trump’s hard-line stance on immigration. And in Bishop’s mind, some legislators simply don’t understand seasonal economies.

“When people come to Cape Cod and the islands, they come to see and visit us. It’s full employment, we are busy, there’s traffic, so they don’t even realize there is a labor shortage,” Bishop said. “But when you come here in January, you may be the only car on the road for quite a while.”

Hiring strategy

Jim Underdah, general manager at the Coonamessett Inn, considers himself one of the lucky few to secure his share of foreign seasonal workers from Jamaica. Still, a backlog in the system has delayed their arrival and forced him to repurpose the limited workforce he retains year-round.

In anticipation of this, Underdah says many businesses like his choose to employ workers full-time even during the offseason, when he doesn’t need them.

“I have people in the kitchen that we work 40 hours for the winter, so they’re not going to leave me,” Underdah said. “They’re gonna say, ‘Hey, they’re treating us good.’ They’re going to be here this spring. They’re going to get me through till hopefully the workers get in.”

Paul Dean, who runs a seafood retail and catering business, was not as lucky. Lacking the workforce he needs to keep his multiple operations running, he says he may be forced to close one of his locations a couple days a week.

Like Sylvester, Dean predicts this would amount to a loss of 20 percent of annual income.

“That means I’m buying 20 percent less product from local vendors,” Dean said. “We’re obviously collecting 20 percent less in meals tax toward the state. We’re not paying payroll taxes … there’s a huge trickle-down effect.”

Dean and Sylvester are crossing their fingers for a last-ditch effort by lawmakers to reinstate an H2B returning worker exemption before April 28, as part of its fiscal year 2017 federal spending bill. But in case that doesn’t happen, Sylvester offers last-resort advice for summer tourists.

“If you’re going to stay over, bring your sheets and some towels,” he joked, “because there’s going to be no one to clean your room.”

WATCH: One Business Owner Talks about the Challenges

Russia Urged to End Torture, Killing of Gays in Chechnya

International organizations are demanding Russia investigate the abduction, detention and killing of gay and bisexual men in the country’s southern republic of Chechnya.

United Nations human rights experts on Thursday called on Russian authorities to “put an end to the persecution of people perceived to be gay or bisexual in the Chechen Republic who are living in a climate of fear fueled by homophobic speeches by local authorities.”

“It is crucial that reports of abductions, unlawful detentions, torture, beatings and killings of men perceived to be gay or bisexual are investigated thoroughly,” they added.

The appeals follow reports in the respected Russian newspaper Novaya Gazeta that police in the predominantly Muslim republic of Chechnya have rounded up more than 100 men suspected of homosexuality and that at least three of them have been killed.

Chechen authorities have denied the reports, while a spokesman for leader Ramzan Kadyrov insisted there were no gay people in Chechnya.

“Nobody can detain or harass anyone who is simply not present in the republic,” Alvi Karimov told the Interfax news agency. “If such people existed in Chechnya, law enforcement would not have to worry about them since their own relatives would have sent them to where they could never return.”

Separately, the director of the human rights office at the Organization for Security and Cooperation in Europe, Michael Georg Link, said Thursday that Moscow must “urgently investigate the alleged disappearance, torture and other ill-treatment” of gay men in Chechnya.

Novaya Gazeta also reported this month that Chechen authorities are running secret prisons, branded “concentration camps,” in the town of Argun where men suspected of being gay are kept and tortured.

After two separatist wars in the 1990s, predominantly Muslim Chechnya became increasingly conservative under late President Akhmat Kadyrov and then his son Ramzan.

US Wary of Russian Role in Afghanistan as Moscow Holds Talks

As the United States and Russia clash on Syria, another war-torn nation could play out as a renewed theater for the U.S.-Russia rivalry: Afghanistan.

Thursday, U.S. forces dropped what was being called the largest non-nuclear bomb on a reported Islamic State militant complex in the eastern Afghan province of Nangarhar.

The U.S. strike came a day before Russia is to host multi-nation talks on prospects for Afghan security and national reconciliation, the third such round since December.

Eleven countries are set to take part in Friday’s discussions in Moscow, including Afghanistan, China, Iran, Pakistan and India. Former Soviet Central Asian states have been invited to attend for the first time.

The Afghan Taliban said Thursday that they would not take part.

“We cannot call these negotiations [in Moscow] as a dialogue for the restoration of peace in Afghanistan,” Taliban spokesman Zabihullah Mujahid told VOA. “This meeting stems from political agendas of the countries who are organizing it. This has really nothing to do with us, nor do we support it.”

The spokesman reiterated insurgents’ traditional stance that U.S.-led foreign troops would have to leave Afghanistan before any conflict resolution talks could be initiated.

The United States was also invited to the Moscow talks, but Washington declined, saying it had not been informed of the agenda beforehand and was unclear about the meeting’s motives.

Undermining NATO

American military officials suspect Russia’s so-called Afghan peace diplomacy is aimed at undermining NATO and have accused Moscow of arming the Taliban.

“I think it is fair to assume they may be providing some sort of support to [the Taliban], in terms of weapons or other things that may be there,” U.S. Central Command Chief General Joseph Votel told members of the House Armed Services Committee in March. He said he thought Russia was “attempting to be an influential party in this part of the world.”

For its part, Moscow has denied that it is supporting the Afghan Taliban.

“These fabrications are designed, as we have repeatedly underlined, to justify the failure of the U.S. military and politicians in the Afghan campaign.There is no other explanation,” said Zamir Kabulov, the Kremlin’s special envoy to Afghanistan.

In a separate statement Thursday, the Taliban also denied receiving military aid from Russia, though the group defended “political understanding” with Afghanistan’s neighbors and regional countries.

Anna Borshchevskaya of the Washington Institute for Near East Policy said reports of Moscow supporting the Taliban were not new.

“The official Russian position on the Taliban is that they see it as a group that could help fight ISIS, but this is something that even some Taliban spokesmen have denied, since ISIS and the Taliban reached an understanding about a year ago,” Borshchevskaya said.

Putin’s motive

She said that if the allegations of Russian support for the Taliban were true, Russian President Vladimir Putin was most likely motivated by his desire to undermine the West.

“Certainly one motivation could be taking advantage of regional chaos, and to assert Russia’s influence at the expense of the U.S., taking advantage of a U.S. retreat from the Middle East and elsewhere and [to] undermine NATO and the U.S.” Borshchevskaya said, “This has been Putin’s pattern.”

U.S. President Donald Trump has made few public statements on Afghanistan, and his administration is still weighing whether to deploy more American troops to try to reverse the course of the war.

Thursday’s strike in Nangarhar marked a major step by the Trump administration in Afghanistan, in which there has been a U.S. military presence since 2001.

During a March 31 NATO foreign ministers meeting in Brussels, U.S. Secretary of State Rex Tillerson reaffirmed U.S. support for the alliance’s mission in Afghanistan.

“NATO’s work in Afghanistan remains critical. The United States is committed to the Resolute Support Mission and to our support for Afghan forces,” Tillerson said.

Some 13,000 NATO troops, including 8,400 Americans, are part of the support mission, tasked with training Afghanistan’s 300,000-member national security and defense forces.

Michael Kugelman, South Asia expert at the Washington-based Woodrow Wilson Center, said he expected continuity in U.S. policy toward Afghanistan between the Obama and Trump administrations.

“The statement made by Tillerson at a recent NATO meeting could well have been uttered by an Obama official,” Kugelman said. “The focus on training, advising and assisting and the call for reconciliation mirror exactly the Obama administration’s priorities.”

More troops

But the South Asia analyst noted one important policy difference: U.S. troop levels in Afghanistan.

“Obama was an anti-war president who was never comfortable keeping large numbers of troops in Afghanistan. Trump is unlikely to be as constrained,” Kugelman said.

“Look for Trump to send in several thousand more troops,” he said. “This is a request that the generals in Afghanistan have made for years, and Trump is more likely to defer to the U.S. military’s wishes on this than Obama was.”

As for Russian involvement in Afghanistan following the former Soviet Union’s occupation of the South Asian country from 1979 to 1989, Kugelman said that even if Russia were engaging the Taliban to undercut U.S. influence,  the two nations ultimately hope for the same outcome in Afghanistan.

“The ironic thing is that Washington and Moscow both want the same endgame in Afghanistan — an end to the war, preferably through a reconciliation process — but they simply can’t get on the same page about how to proceed,” Kugelman said.

Trump, Yellen May Not Be an Odd Couple After All

At first glance, U.S. President Donald Trump and Federal Reserve chair Janet Yellen may have little in common.

Yellen is an academic economist and veteran of Democratic administrations who is committed to an open global economy, while Trump is a real estate mogul with an electoral base suspicious of the economic order Yellen helped to create.

Yet the two may have interests in common now that Trump is president and both want to get as many Americans working as possible.

Since her appointment as Fed chair in February 2014, Yellen has kept interest rates low and she currently pledges to raise them only slowly even though unemployment, at 4.5 percent, is at its lowest in nearly 10 years.

Meanwhile, Trump’s election campaign promises to cut taxes, spend money on infrastructure and deregulate banking, have helped propel a surge in the U.S. Conference Board’s consumer confidence index to its highest level since the internet stocks crash 16 years ago.

Former Fed staff and colleagues who know Yellen said Trump’s surprising remarks this week in a Wall Street Journal interview, in which he did not rule out Yellen’s reappointment to a new four-year term next year, are not as outlandish as they may appear now that the president has a vested interest in keeping markets and the economy on an even keel.

And the same staff and colleagues say Yellen may well accept reappointment, despite Trump’s criticism of her during last year’s election campaign.

Many in Trump’s Republican party have called for tighter monetary policy and a less activist Fed, but “the president would not really find that useful,” said former Fed vice chair Donald Kohn.

If Trump fills three existing Federal Reserve board vacancies with people Yellen thinks she could work with, “it would be really difficult to turn down” a reappointment when her term as chair expires in February 2018.

“If she continues to do well, he’d be nuts to ditch her for an unknown quantity,” said University of California, Berkeley, economics professor Andrew Rose, a long-time colleague and co-author with Yellen of an oft-cited study of labor markets.

Yellen took over from Ben Bernanke as Fed chair in February 2014 with the U.S. economic recovery from the 2008 financial crisis still on shaky ground, and she has made no secret she puts a priority on growth in jobs and wages and a broad recovery in U.S. household wealth.

In a slow return to more normal monetary policy, Yellen has stopped the purchase of additional financial securities by the Fed and in December 2015 began raising short term interest rates for the first time in 10 years.

So far those policy shifts have been engineered with little apparent impact on job growth, and so mesh with Trump’s core election campaign promises to restore employment and earnings.

The slow rise in interest rates in the past year has also happened while U.S. stock prices have risen to record highs, though Trump has claimed the credit for himself.

Precedent for Fed Chair to Stay On

There is precedent for Trump to stick with a former president’s Fed chair appointment. Paul Volcker, Alan Greenspan and Ben Bernanke, the three previous Fed chairs, served at least two four-year terms and were nominated by both Democratic and Republican presidents.

However it may be a more difficult step for Trump.

During last year’s election campaign, Trump accused Yellen of accepting orders from then President Obama to keep interest rates low for political reasons, and he said he would replace her as Fed chair because she is not a Republican party member.

In a particularly biting moment last year, in a campaign video advertisement, he labeled her as among the “global special interests” who had ruined life for middle America.

 

The Fed on Thursday said it had no response to Trump’s comments published on Wednesday on Yellen and or on whether Yellen would consider a second term.

Much Could Still Go Wrong

Some of Trump’s advisers and some Republican lawmakers want a more conservative Fed in which the chair has less power and would see a Yellen reappointment as yet another step away from his promise to “drain the swamp” of the Washington establishment.

There are also three current vacancies on the Fed’s seven member Board of Governors, and unorthodox new members could make it difficult for Yellen to manage policy or accept another four-year term.

But if the choice is her consensus style or someone unproven in their ability to manage public and market expectations, “he’d be wise to reappoint her,” said Joseph Gagnon, a former Fed staffer and Berkeley colleague of Yellen’s currently at the Peterson Institute for International Economics.

“I don’t see what is in his interests to appoint someone who is going to jack up interest rates.”

Polish Leader Welcomes NATO Troops, Hails ‘Historic Moment’

Polish leaders welcomed a new multinational NATO battalion to Poland on Thursday, with the president calling it “a historic moment for my country.”

 

The near-permanent deployment of a NATO battalion under U.S. command marks the first time NATO troops have been placed so close to Russian territory, a step the Kremlin denounces as a threat to its own security.

 

But Polish President Andrzej Duda said the deployment, to Poles, stands as a symbol of liberation and inclusion in the Western democratic world.

 

“It’s not an exaggeration to say that generations of Poles have waited for this moment since the end of the Second World War,” Duda said in the northeastern town of Orzysz as he addressed the troops and the U.S. and British ambassadors.

 

The battalion of about 1,000 troops is led by the United States, but includes troops from Britain and Romania. Croatian troops are expected to join later.

 

Their base of operations, Orzysz, is 60 kilometers (37 miles) from the border with Kaliningrad, a Russian territory on the Baltic Sea separated from the Russian mainland.

 

While NATO has held exercises in the region in past years, the deployment marks the alliance’s first continuous troop presence in the area that was considered by defense experts as vulnerable.

 

Defense Minister Antoni Macierewicz said the NATO presence guarantees the security of NATO’s eastern flank.

 

The NATO deployment is separate from a U.S. battalion of 3,500 troops that arrived in Poland earlier this year and which is headquartered in southwestern Poland, near the German border.

 

Both missions are responses to calls for greater U.S. and NATO protection by a region fearful after Russia’s 2014 annexation of Crimea and its support for a rebel insurgency in eastern Ukraine.

Tesla Set to Unveil Electric Semi-truck in September

Tesla CEO Elon Musk says the company plans to unveil an electric semi-truck in September.

 

Musk tweeted the announcement Thursday. He offered no other details about the semi, such as whether it will be equipped with Tesla’s partially self-driving Autopilot mode.

 

Musk also said the company plans to unveil a pickup truck in 18 to 24 months.

 

Tesla currently sells two electric vehicles, the Model S sedan and Model X SUV. Its lower-cost Model 3 electric car is due out by the end of this year.

 

But Musk revealed last summer that the Palo Alto, California-based company is working on several more vehicles, including the semi and a minibus.

 

Tesla shares rose nearly 3 percent in late trading Thursday in response to Musk’s tweet.

Chile’s President Bachelet Presents Bill to Boost Pensions

Chilean President Michelle Bachelet announced on Wednesday evening that she was sending to Congress a bill that would dramatically increase the size of

public pensions in the face of growing opposition to the nation’s current system.

The bill would include an increase in the amount of savings held collectively, a new 5 percent payroll tax, and a corresponding boost in retirement savings. Current pensioners would see savings rise by around 20 percent, while workers currently paying into the system would see increases of up to 50

percent.

“We must advance toward a truly mixed social security system, where all play their part, where solidarity comes from personal effort, where the state and employers play their corresponding role,” Bachelet said in a speech.

Chile’s privatized pension plan was started in the 1980s during the dictatorship of Augusto Pinochet, and the so-called ‘Chilean model’ has been copied and adopted worldwide.

But opposition to it is rising in Chile, with regular street protests demanding changes. Opponents say the payouts are meager, and they complain the pensions are managed by for-profit funds.

It is unclear if Bachelet’s bill can become law. Her governing coalition is severely divided, and parliamentary elections are set to take place in November, while debate on complex bills can take years in Chile.

Earlier in April, Chile’s finance minister said divisions in the government might make any pension reform impossible, and earlier this week, a major education bill pushed by Bachelet failed in committee.

Under the system proposed by Bachelet, the new 5 percent tax would be divided into two parts and have a six-year implementation period. Three percent would go into the personal savings of each worker, while 2 percent would go into a collective account, managed by the state.

The bill would also give pensioners more say in the investment decisions of the pension investment funds, known as AFPs.

In Win for Boeing and GE, Trump Says He Wants to Revive Export-Import Bank

President Donald Trump plans to revive the hobbled Export-Import Bank of the United States, his office said, a victory for American manufacturers like Boeing and General Electric which have overseas customers that use the agency’s government-backed loans to purchase their products.

Trump first told the Wall Street Journal on Wednesday he would fill two vacancies on the agency’s five-member board that have prevented the bank from having a quorum and being able to act on loans over $10 million. Trump’s picks must gain approval from the Senate, which blocked nominees by former President Barack Obama.

Trump told the Journal that the bank benefits small businesses and creates jobs, a reversal of his earlier criticism of the bank being “featherbedding” for wealthy corporations.

Bank offers loans to foreign entities

The Export-Import Bank, an independent government agency, provides loans to foreign entities that enables them to purchase American-made goods. For example, it has been used by foreign airlines to purchase planes from Boeing and farmers in developing nations to acquire equipment.

The bank’s acting chairman, Charles “CJ” Hall, was not immediately available for comment.

The bank has become a popular target for conservatives, who have worked in Congress to kill the bank, arguing that it perpetuates cronyism and does little to create American jobs.

Trump’s about-face on the export bank comes after meeting on Tuesday with former Boeing Chief Executive Officer Jim McNerney, who left the company last year but oversaw the corporation’s aggressive lobbying effort in support of the bank in 2015.

Trump also met at the White House on Feb. 23 with GE CEO Jeff Immelt and Caterpillar Inc CEO Mark Sutton, both vocal supporters of the bank.

It is not known if they discussed the bank at those meetings.

Bank helps level playing field

Large American corporations that do significant amounts of exports say other countries have similar agencies and the export bank levels the playing field.

“This is an encouraging development on a key competitive issue for U.S manufacturers and their extensive supply chains,” Boeing spokeswoman Kate Bernard said in statement to Reuters.

 

The U.S. Chamber of Commerce and the National Association of Manufacturers, which includes companies like Ingersoll-Rand, United States Steel and Pfizer, cheered the move.

“Manufacturers are encouraged by President Trump’s vocal support for the bank,” said NAM Vice President of International Economic Affairs Linda Dempsey in a statement.

A 2015 fight to shutter the bank led by conservatives in Congress allowed the bank’s charter to expire for five months.

After overwhelming bipartisan support emerged to renew the bank’s charter, which is needed for it to operate, conservatives blocked nominees to the board, preventing it from financing large exports like aircraft and power turbines.

Groups work to shut down bank

Freedom Partners and Americans for Prosperity, two groups funded by the Republican donor Koch brothers, worked aggressively for years to kill the bank. Brothers Charles and David Koch have opposed the bank for what they call damaging interference into the free market by government.

Nathan Nascimento, Freedom Partners vice president of policy, called the bank on Wednesday “the epitome of what’s wrong with Washington.”

“Reopening the flood gates to Ex-Im’s corporate welfare is a bad deal for hardworking taxpayers and a bad deal for American businesses,” he said.

The Club for Growth, which spends heavily in electing conservative candidates and was one of the few groups to campaign against Trump during the Republican primary in 2016, also lamented the change in position.

“Ex-Im has a long history of cronyism and corruption that is well-known to many in the Trump Administration, and while we hoped it would be done away with, the administration now has taken on the almost impossible challenge of reforming a federal agency whose mission has been to pick winners and losers with taxpayer dollars,” spokesman Doug Sachtleben said in a statement to Reuters.

 

French Presidential Race Tightens Further, Markets Nervous

Polls showed France’s presidential election campaign tightening further on Wednesday as financial markets fretted about the rising popularity of a far-left candidate who wants to put France’s European Union membership to a vote.

Investors have long been anxious about election frontrunner Marine Le Pen, leader of the far-right National Front, who has promised a referendum on whether to quit the EU and ditch the euro.

She has been joined on the list of investors’ concerns by far-left veteran Jean-Luc Melenchon, who has surged in the polls after strong performances in two candidates’ debates.

The Communist-backed Melenchon also wants a referendum on EU membership after an attempt to renegotiate the EU treaties.

Fillon stable in poll

The latest Ifop-Fiducial poll on Wednesday showed Le Pen winning 23.5 percent in the April 23 first round, one point ahead of centrist Emmanuel Macron.

Both Le Pen and Macron’s support dipped by half a point from Tuesday while conservative Francois Fillon was stable on 19 percent and Melenchon unchanged on 18.5 percent.

The top two candidates go through to a run-off on May 7, where polls say Macron would easily beat Le Pen.

Traders cited the French election, as well as U.S. relations with Syria and North Korea, as reasons why investors switched to safe assets, such as gold or U.S. Treasuries, on Wednesday.

“Risk sentiment is not strong at the moment because of tensions in North Korea and also risk of a … rising Melenchon,” said Nomura currency strategist Yujiro Goto in London.

German foray

Concern about a Le Pen victory, which would put further pressure on the EU after Britain’s decision to leave the bloc, led to an unusual foray into French politics by Germany, France’s traditional partner at the heart of the EU.

“We need a pro-European France,” German Finance Minister Wolfgang Schaeuble said in Berlin.

“I hope Le Pen does not become French president,” he added.

Outgoing Socialist President Francois Hollande is also concerned about Melenchon’s rising popularity, according to Le Monde newspaper, and this has fed speculation he could endorse Macron as the best hope to win rather than official Socialist candidate Benoit Hamon, who is doing poorly in the polls.

Hollande won’t offer support yet 

In an interview with Le Point magazine published on Wednesday, Hollande kept silent about his choice, saying he would endorse a candidate before the second round of the election.

But he spoke highly of the decision by Macron, a former economy minister in his government, to launch a new party, saying “I think politics needs renewal” and he spoke out against demagoguery.

“There is a danger in simplifications and falsifications which make people look at the … speaker rather than the content of what he is saying,” he said.

Hollande, an unpopular president who did not seek a second term, said ruling parties should not hold primary elections in future, because it was impossible to be president and candidate at the same time.

‘The French Chavez’

The conservative Le Figaro newspaper called Melenchon “the French Chavez,” alleging in a front-page story that his plans were inspired by the late Venezuelan leader Hugo Chavez.

Melenchon mocked his new notoriety in a blog on his website.

“They announce that my winning the election would bring nuclear winter, a plague of frogs, Red Army tanks and the landing of the Venezuelans,” he said.

Bill Would Permit Use of Livestock as Loan Security in Zimbabwe

Zimbabwean entrepreneurs could soon use movable assets, including livestock and vehicles, to secure loans from banks, according to a bill brought before the country’s Parliament this week.

The southern African country’s economy is dominated by informal business following the formal sector’s contraction by as much as 50 percent between 2000 and 2008, according to government data, after President Robert Mugabe’s seizure of white-owned farms decimated the key agriculture sector.

The Movable Property Security Interest Bill, introduced Tuesday by Finance Minister Patrick Chinamasa, seeks to make it easier for Zimbabwe’s burgeoning informal sector to access bank funds.

A copy of the bill seen Wednesday by Reuters defines movable property as “any tangible or intangible property other than immovable property.”

New economic reality

Presenting the bill, which still has to go through several stages before becoming law, Chinamasa said the majority of small businesses did not have the immovable assets that banks require as collateral for loans.

“The Reserve Bank of Zimbabwe Act will be amended to achieve the objective of this bill, and the assets to be considered include any type, such as machinery, motor vehicles, livestock and accounts receivable,” Chinamasa told lawmakers.

The finance minister said banks had failed to adjust to Zimbabwe’s new economic reality, in which the informal sector, mostly made up of small businesses, plays a dominant role.

Loans to small businesses amounted to $250 million in the year to date, Chinamasa said, out of total bank loans of nearly $4 billion.

“As minister in charge of financial institutions, I feel there is need for a change of attitude by our banks to reflect our economic realities,” Chinamasa said.

The bill provides for a collateral registry to be set up by the central bank, which would maintain a database of all movable assets put up as loan security.

“The purpose of the registry is to facilitate commerce, industry and other socioeconomic activities by enabling individuals and businesses to utilize their movable property as collateral for credit,” reads part of the bill.

Pitching the proposed law to legislators, Chinamasa cited several developing economies — including those of Liberia, Ghana, Malawi, Kenya, Lesotho, Peru and Ukraine — that he said used movable assets as collateral to increase lending to small businesses.

“Their access to banking finance increased by 8 percent [on average], while interest rates declined by 3 percent per annum,” he said.

Foreign currencies

Zimbabwe’s economy enjoyed a temporary reprieve after it adopted the use of multiple foreign currencies — mainly the U.S dollar and South Africa’s rand — in 2009 to replace its inflation-ravaged local unit.

The currency move initially paid dividends, with the economy expanding by an average 11.3 percent between 2010 and 2012, according to World Bank data, while inflation came down to single digits.

However, declining exports from the mineral-dependent country following weaker mineral commodity prices coincided with a sharp rise in imports, triggering an acute foreign currency shortage and slowing down the economy as credit to businesses dried up.

China Won’t Be Labeled a Currency Manipulator, Trump Says

President Donald Trump said Wednesday that his administration would not label China a currency manipulator, backing away from a  campaign promise, even as he said the U.S. dollar was “getting too strong” and would eventually hurt the economy.

In an interview with The Wall Street Journal, Trump also said he would like to see U.S. interest rates stay low, another comment at odds with what he had often said during the election campaign.

A U.S. Treasury spokesman confirmed that the Treasury Department’s semiannual report on currency practices of major trading partners, due out this week, would not name China a currency manipulator.

The U.S. dollar fell broadly on Trump’s comments on both the strong dollar and interest rates, while U.S. Treasury yields fell on the interest rate comments, and Wall Street stocks slipped.

Trump’s comments broke with a long-standing practice of both U.S. Democratic and Republican administrations of refraining from commenting on policy set by the independent Federal Reserve. It is also highly unusual for a president to address the dollar’s value, which is a subject usually left to the Treasury secretary.

 

A day-one promise

“They’re not currency manipulators,” Trump told the Journal about China. The statement was an about-face from Trump’s election campaign promises to slap that label on Beijing on the first day of his administration as part of his plan to reduce Chinese imports into the United States.

The Journal paraphrased Trump as saying that he’d changed his mind on the currency issue because China has not been manipulating its yuan for months and because taking the step now could jeopardize his talks with Beijing on confronting the threat from North Korea.

Separately Wednesday, at a joint news conference with NATO Secretary General Jens Stoltenberg, Trump said the United States was prepared to tackle the crisis surrounding North Korea without China if necessary.

The United States last branded China a currency manipulator in 1994. Under U.S. law, labeling a country as a currency manipulator can trigger an investigation and negotiations on tariffs and trade.

Senate Democratic leader Chuck Schumer said in a statement that Trump’s decision to break his campaign promise on China was “symptomatic of a lack of real, tough action on trade” against Beijing.

“The best way to get China to cooperate with North Korea is to be tough on them with trade, which is the number one thing China’s government cares about,” Schumer said.

Yellen’s future

Trump also told the Journal that he respected Federal Reserve Chair Janet Yellen and said she was “not toast” when her current term ends in 2018.

That was also a turnaround from his frequent criticism of Yellen during his campaign, when he said she was keeping interest rates too low.

At other times, however, Trump had said that low rates were good because higher rates would strengthen the dollar and hurt American exports and manufacturers.

“I think our dollar is getting too strong, and partially that’s my fault because people have confidence in me. But that’s hurting — that will hurt ultimately,” Trump said Wednesday.

“It’s very, very hard to compete when you have a strong dollar and other countries are devaluing their currency,” Trump told the Journal.

The dollar fell broadly Trump’s comments on the strong dollar and on his preference for low interest rates. It fell more than 1.0 percent against the yen, sinking below 110 yen for the first time since mid-November.

“It’s hard to talk down your currency unless you’re going to talk down your interest rates, and so obviously he’s trying to get Janet Yellen to play ball with him,” said Robert Smith, president and chief investment officer at Sage Advisory Services in Texas.

Trump’s comments on the Fed were his most explicit about the U.S. central bank since he took office in January, and they suggested a lower likelihood that he plans to try to push monetary policy in some unorthodox new direction.

Fed overhaul

Some key Republicans have advocated an overhaul of how the Fed works, using a rules-based policy that would most likely mean higher interest rates, not the lower ones Trump said he prefers.

The Fed in mid-March hiked interest rates for the second time in three months, increasing its target overnight rate by a quarter of a percentage point.

“Maybe he’s learning on the job,” said Carl Tannenbaum, chief economist at Northern Trust in Chicago, noting that with Trump’s transition from candidate to president he was now being counseled by more orthodox voices sensitive to what is needed to keep global bond markets on an even keel.

The president is also “very close” to naming a vice chair for banking regulation and filling another open seat that governs community banking on the Federal Reserve Board, U.S. Treasury Secretary Steven Mnuchin said during the interview.

Turkey’s Referendum: Millions of Voters With Myriad Views

There are only two options on the ballot – “yes” or “no” – but tens of millions of Turks will cast their votes in a referendum on Sunday with a myriad of motives.

The referendum could bring about the biggest change to Turkey’s system of governance since the founding of the modern republic almost a century ago, replacing its parliamentary system with an executive presidency.

The question on the ballot paper may be about the constitution, but looming large is the figure of President Recep Tayyip Erdogan, who could win sweeping powers and stay in office until 2029 if the changes are approved.

Polls show a close race, with a slight lead for “yes.” But the vote may yield surprises.

‘I want a democracy’

“I’m a patriot,” said Cengiz Topcu, 57, a fisherman in Rize on the Black Sea coast, Erdogan’s ancestral home town where his supporters are among the most fervent.

But Topcu is voting “no.”

“In the past, Erdogan was a good man but then he changed for the worse. I want a democracy: not the rule of one man,” he told Reuters in his boat.

The proposed changes, Erdogan and his supporters say, will make Turkey stronger at a time when the country faces security threats from both Islamist and Kurdish militants.

Violence has flared in the largely Kurdish southeast since the collapse of a cease-fire between the state and the outlawed Kurdistan Workers Party (PKK) in 2015, and parts of the region have long been strongholds of opposition to Erdogan.

But Hikmet Gunduz, 52, a street vendor in the main regional city of Diyarbakir, hopes his “yes” vote will help bring peace.

“I like President Erdogan’s character. He is a bit angry and a bit authoritarian but his heart is full of love.”

Freedoms

Erdogan, arguably modern Turkey’s most popular but divisive politician, has long cast himself as the champion of ordinary, pious Turks exploited by a secular elite.

Although a majority Muslim country, Turkey is officially secular and the headscarf was long banned in the civil service and in universities until Erdogan’s Islamist-rooted AK Party overturned that restriction.

Aynur Sullu, a 49-year-old hotel owner in the Aegean coastal city of Izmir, a bastion of the secularist opposition, said she planned to vote “yes,” dismissing suggestions that Erdogan’s Islamist ideals were encroaching on people’s private lives.

“Anyone can drink raki or swim with a bikini freely,” she said, referring to the alcoholic drink favored by Mustafa Kemal Ataturk, the founder of the modern secular republic. “Also, now women with headscarves have freedom.”

Businesswoman Dilsat Gulsevim Arinc, however, said Erdogan was acting like a sultan and hoped her “no” vote would help teach him a “useful lesson”.

“He is too authoritarian,” said the 68-year-old cafe owner in Cesme, an Aegean resort town. “If things go on like this, I think Turkey will be finished in the next 10 years.”

Hungary Appears to Backtrack in Row Over US University; Protests Persist

Hungary denied Wednesday that a new education law was aimed at shutting down a university founded by U.S. financier George Soros, and suggested a possible compromise in a dispute that has drawn protests at home and criticism from Washington.

Central European University (CEU) found itself in the eye of a political storm after Hungary’s parliament passed the law last week setting tougher conditions for the awarding of licenses to foreign-based universities.

Critics said the new terms would hurt academic freedoms and were especially aimed at CEU, founded by the Hungarian-born Soros after the collapse of Communism and considered a bastion of independent scholarship in the region.

In an apparent change of tack, Education Secretary Laszlo Palkovics said CEU could continue to operate if it delivered its teaching and issued its degrees through its existing Hungarian sister school.

“We never wanted to close down CEU,” Palkovics told news website HVG.hu. “The question is whether CEU insists on having a license in Hungary or having courses in Hungary honored with a CEU degree … [CEU’s own] license has little significance.”

Despite this, thousands of Hungarians protested in central Budapest against what they said was a crackdown on free thought and education.

They filled the capital’s Heroes’ Square and formed a heart shape and the word “CIVIL.” It was the fourth major street demonstration in the last two weeks as the government faces growing resistance a year before elections are due.

“They have pressed ahead since 2010 with new moves every day that hurt democracy in some way,” Robert Ferenczi, a 55 year-old protester from Budapest, told Reuters.

Government spokesman Zoltan Kovacs said the government would not suspend the disputed law, but added: “We are going to have talks with everyone; if the Soros university is driven by good intentions, it will be able to solve the problem.”

CEU itself was taken by surprise at Palkovics’ comments, according to an emailed statement.

“The solution evoked by State Secretary Palkovics in the press does not appear to be legally and operationally coherent and certain,” it said. “CEU has not been approached directly by Secretary Palkovics with this information.”

“Exchanges in the press are no substitute for sustained direct contact on a confidential basis. We look to the Hungarian government to initiate negotiations with CEU so that we can resolve this and go back to work, with our academic freedom secured, without limits or duration.”

The dispute over the university has come to symbolize rival visions of Hungary’s future. Soros, whose ideal of an “open society” is squarely at odds with Orban’s “illiberal democracy, ” has often been vilified by the prime minister.

Domestic protest, foreign concern

The law stipulated that the CEU must open a branch in its home state of New York alongside its campus in Budapest and secure a bilateral agreement of support from the U.S. government.

Both of those conditions would have been prohibitive by a deadline of January 2018, and CEU rejected them from the start.

The United States asked Hungary to suspend the implementation of the law, and the European Union on Wednesday threatened Orban with legal action for moves that it saw as undemocratic.

“Taken cumulatively, the overall situation in Hungary is a cause of concern,” European Commission First Vice President Frans Timmermans said.

Analyst Zoltan Novak at the Centre for Fair Political Analysis said the government now appeared to have performed a U-turn.

“Calling it ‘Soros University’ for weeks was a clear way for the government to designate an enemy and attack,” Novak said. “Now they made the education secretary bring up a policy argument to back out, containing the political fallout.”

Novak said Orban, who faces elections in April 2018, may have miscalculated the resistance the CEU law could provoke, especially from Washington.

UK Parliament Says Brexit Voter Site May Have Been Attacked

A British parliamentary report has raised the possibility that the voter registration site used in the run-up to the June referendum on whether Britain should leave the European Union may have been attacked by foreign powers.

 

Parliament’s Public Administration Committee said Wednesday it “does not rule out the possibility” that a foreign cyberattack may have caused the website to crash on June 7.

 

The report mentions Russia and China as possibly being involved but says it has no proof of foreign intervention targeting the site.

 

Officials initially blamed the crash on a surge in voter demand following a debate.

 

The committee concludes the referendum was in general well run but calls for greater emphasis on cyber security in the future.

 

Britain voted on June 23 to leave the EU bloc.

 

Lavrov: Russia Has Questions About Ambiguous US Policies

Russian Foreign Minister Sergei Lavrov said Wednesday that his government has had a lot of questions about what he said were ambiguous and contradictory ideas coming from the new administration of U.S. President Donald Trump.

Lavrov spoke at the start of a meeting in Moscow with U.S. Secretary of State Rex Tillerson, adding that it is important for Russia to understand U.S. intentions.

Lavrov also referenced last week’s U.S. strike on a Syrian airbase, which came in response to a chemical weapons attack, calling the U.S. response “troubling.”

Tillerson was more brief in his opening statement, but like Lavrov, he said that Wednesday’s talks were happening at an important time and would include a frank discussion of their differences and mutual interests.

The top U.S. diplomat said the lines of communication between the two countries “shall always remain open.” He said he wants to understand why certain areas of sharp differences exist and the prospects for narrowing those divides.

Tillerson arrived in Russia with less ammunition than Washington and London had hoped he would have in his bid to convince Russia to abandon its support for Syrian President Bashar al Assad.

 

But he does have a tough ultimatum in hand, following reports quoting unidentified senior U.S. officials as saying that Russia had prior knowledge of the attack that killed scores of people including women and children.

G7 ministers meeting Tuesday in the Italian city of Lucca failed to agree on targeted sanctions against the Russian and Syrian military, arguing that an investigation would first have to confirm who in Syria used chemical weapons against civilians in the country last week.

 

“We cannot let this happen again,” Tillerson told reporters before flying to Moscow. “We want to relieve the suffering of the Syrian people. Russia can be a part of that future and play an important role,” he said. “Or Russia can maintain its alliance with this group, which we believe is not going to serve Russia’s interests longer term.”

The chemical attack prompted a world outcry and a U.S. missile attack that marked a turning point in the Trump administration’s approach to the seven-year-old conflict.

 

U.S. President Donald Trump and British Prime Minister Theresa May had agreed to press Russia to distance itself from Assad following the chemical attack by imposing targeted sanctions, but Germany and Italy, both leading G-7 nations, disagreed.

 

Russian President Vladimir Putin “must not be pushed into a corner,” said Italian Foreign Minister Angelino Alfano said Tuesday.

For his part, Putin called Tuesday for a U.N. probe of last week’s attack. Without elaborating, he also said Russia has received intelligence about planned “provocations” using chemical weapons that would put the blame on the Syrian government.

 

The G7 ministers’ decision in Italy means the prospect of sanctions is dim. The process of launching an investigation would be long and complex, requiring a U.N. resolution and an agreement by the Assad government for weapons inspectors to access sites in territory under Assad’s control before establishing who was responsible and whether there was Russian complicity.

 

As the ground rapidly shifted regarding the U.S. approach to Syria, Tillerson made it clear that Washington hopes Assad will not be part of Syria’s future. He told the foreign ministers in Lucca U.S. missile strikes were necessary as a matter of U.S. national security, and indicated the Trump administration may not be done with Assad.

 

“We do not want the regime’s uncontrolled stockpile of chemical weapons to fall into the hands of ISIS or other terrorist groups who could, and want, to attack the United States or our allies. Nor can we accept the normalization of the use of chemical weapons by other actors or countries in Syria or elsewhere,” Tillerson said.

With Media Muzzled, Turkish ‘No’ Voters Seek Alternative Channels

Strolling down the quayside in Izmir, a liberal bastion on Turkey’s Aegean Coast, Kubilay Mutlu and his Street Orchestra sing of “the naked emperor” and the collapse of sultanates in a bid to rally “no” voters ahead of Sunday’s historic referendum.

With mainstream media saturated by pro-government campaigning ahead of the vote on broadening President Tayyip Erdogan’s powers, those opposed to the changes are seeking alternative channels to get their message across.

“No” supporters have complained of threats and bans from the authorities, and a report by one non-governmental group said television coverage of the “yes” campaign had been ten times more extensive than that of the opposition.

“What we want to stress, despite the pessimistic picture, is that ‘no’ is a very important option. Let’s use our right to object,” said Mutlu, whose band, made up of teachers and students from a local university, put their song “One ‘no’ is enough” on video-sharing site YouTube.

Referendum to be decided Sunday

Sunday’s referendum will decide on the biggest change in Turkey’s system of governance since the foundation of the modern republic almost a century ago, potentially replacing its parliamentary system with an executive presidency.

Erdogan and his supporters say the change is needed to give Turkey stronger leadership at a time of turbulence. Opponents fear increasingly authoritarian rule from a president they cast as a would-be sultan who brooks little dissent.

The vote is being held under a state of emergency imposed after a failed military coup nine months ago, meaning there are “substantive” limitations on freedom of expression and assembly, according to the Venice Commission, a panel of legal experts at the Council of Europe.

Turkey has purged more than 113,000 people from the police, judiciary, military and elsewhere since the coup attempt, and has closed more than 130 media outlets, raising concerns among Western allies about deteriorating rights and freedoms.

Many opposition leaders jailed

The leaders of the pro-Kurdish opposition HDP, parliament’s third-largest party, have been jailed over alleged links to Kurdish militants along with a dozen of its MPs and thousands of its other members. The HDP opposes the constitutional changes.

“The extremely unfavorable environment for journalism and the increasingly impoverished and one-sided public debate that prevail in Turkey at this point question the very possibility of holding a meaningful, inclusive democratic referendum campaign,” the Venice Commission said last month.

Turkish officials have said international observers are free to monitor all aspects of the referendum and have repeatedly rejected the notion that the media is muzzled, saying that outlets shut down in the purges were closed on terrorism-related charges, not for their journalism.

Erdogan was quoted in February as saying there was more press freedom in Turkey than in many Western countries.

Dominating the airwaves

A stream of music videos exhorting people to vote “no” have emerged on social media, as opposition politicians complain that the playing field ahead of the vote is far from level.

In one such video, which has had close to 400,000 views on YouTube, a women’s group appeals to listeners to use “power of laughter” in a song entitled “ha ha ha, hayir,” a play on the Turkish word for “no.”

“They have the media, meeting halls, municipalities and resources in their hands. But stubbornly we try to touch people on the streets, through social media,” Dilara Yucetepe, who was part of the project, told Reuters.

Another “no” video draws on imagery from anti-government demonstrations in 2013, when hundreds of thousands of people took to the streets in what grew from a protest against the redevelopment of an Istanbul park into a broad show of defiance.

Opposition leader interviewed

State broadcaster TRT interviewed Kemal Kilicdaroglu, leader of the main opposition CHP, on Friday evening and was set to interview a spokesman for the HDP on Tuesday, a development the party described on its Twitter feed as “seemingly unbelievable.”

Such appearances are relatively rare, all but drowned out by the multiple speeches each day by Erdogan, Prime Minister Binali Yildirim and others broadcast live on all the major networks.

According to a report by the Unity for Democracy (DIB), an opposition-affiliated organization, live television broadcasts from March 1-20 period dedicated 169 hours to Erdogan, 301.5 hours to the ruling AK Party and 15.5 hours to the nationalist MHP, which supports the “yes” campaign.

The CHP had 45.5 hours of coverage while the HDP had none, the report said. A Turkish court last week banned the HDP’s “no” campaign song on the grounds that it contravened the constitution and fomented hatred.

In a report published on the party’s website, CHP lawmaker Necati Yilmaz said “no” campaigners had faced 143 incidents of pressure, threats and bans by the end of March.

“While the state’s resources and financial power are being used to boost the ‘yes’ vote, its legal, administrative and security forces are used to clamp down on ‘no,’” he said.

Wall Street Reforms May Be Replaced, Trump Tells CEOs

President Donald Trump told a group of chief executives Tuesday that his administration was revamping the Wall Street reform law known as Dodd-Frank and might eliminate the rules and replace them with “something else.”

At the beginning of his administration, Trump ordered reviews of the major banking rules that were put in place after the 2008 financial crisis, and last week he said officials were planning a “major haircut” for them.

“For the bankers in the room, they’ll be very happy because we’re really doing a major streamlining and, perhaps, elimination, and replacing it with something else,” Trump said Tuesday.

“That will be the minimum. But we’re doing a major elimination of the horrendous Dodd-Frank regulations, keeping some obviously, but getting rid of many,” he said.

The many provisions of the Dodd-Frank measure were aimed at decreasing risks in the U.S. financial system. The White House is not unilaterally able to upend Dodd-Frank’s rules, almost all of which are implemented by independent regulatory agencies like the Securities and Exchange Commission and the Federal Reserve.

A sweeping change to the law would require congressional action, though in some cases regulators may also have wiggle room to make changes through a formal rule-making process.

Report on regulations

In February, Trump issued an executive order requiring Treasury Secretary Steve Mnuchin to consult with U.S. regulators and submit a report outlining a proposal for possible regulatory and legislative changes that will help fuel economic growth and promote American business interests.

That report, due to be released in June, will most likely serve as a blueprint for possible changes down the road. However, congressional action on a Wall Street bill is not expected in the near term, as Congress focuses primarily on health care and tax reform.

Participants in the Tuesday meeting included Rich Lesser, chief executive of Boston Consulting Group; Doug McMillon, chief executive of Wal-Mart Stores; Indra Nooyi, chief executive of PepsiCo; Jim McNerney, former chief executive of Boeing; Ginni Rometty, chief executive of IBM; and Jack Welch, former chairman of General Electric.

The business leaders are part of Trump’s “Strategy and Policy Forum” that last met with him in February.

Trump also reiterated his criticism of the North American Free Trade Agreement between the United States, Canada and Mexico.

“NAFTA is a disaster. It’s been a disaster from the day it was devised. And we’re going to have some very pleasant surprises for you on NAFTA, that I can tell you,” he said.

Social Media Storm Over Airline Treatment of Passenger

United Airlines saw its stock price decline by 4 percent or more after a viral video showing a passenger being dragged off a flight and injured sparked outrage in the U.S. and several nations. One airline analyst says he has never seen such a “parade of incompetence.”

Report: Millions of Migrant Gulf Laborers Forced to Pay for Right to Work

South Asian migrants powering the construction boom in oil-rich Gulf countries are often illegally made to pay for their own recruitment, adding to hardships of poor working conditions and wages, according to an investigation released Tuesday.

Millions of migrants seeking a way out of poverty by working in Gulf nations from Qatar to the United Arab Emirates must routinely pay fees that can equal a year’s salary, U.S. researchers said in a report.

“Recruitment is not free,” said report co-author David Segall of New York University’s Stern Center for Business and Human Rights. “Somebody does have to bear these costs, but that of course should be the employing company.”

The findings came as conditions for construction workers from India, Nepal and Bangladesh in the 2022 FIFA World Cup host, Qatar, have drawn scrutiny from rights groups who say migrants live in squalor and work without proper access to water and shelter.

In five fact-finding missions to the Gulf and South Asia, the researchers found workers are typically made to pay for their airfare from South Asia and their work visa, often at inflated prices.

Selling visas for profit is illegal in the six Gulf countries the researchers investigated — Saudi Arabia, Kuwait, Qatar, Oman, the United Arab Emirates and Bahrain. But violations rarely lead to prosecution and punishment, the report said.

Fees highest for Bangladeshis

Bangladeshi workers paid as much as $5,200 in recruitment fees, according to the study, the highest price among other South Asian construction workers, who number some 10 million people in the Gulf.

In rare cases, construction companies took on expenditures to recruit their workers, the study found. The fees had the effect of pushing already destitute migrants further into poverty by tying them to high-interest loans.

“These are people who are already desperate enough that they feel that they need to undertake this journey, leave their families in order to just achieve the possibility of economic success,” Segall told the Thomson Reuters Foundation. “For them to be in debt before they even start this journey is really an injustice.”

Reports of abuse of migrant domestic workers have prompted countries such as Kenya, Ethiopia, Uganda and Indonesia to ban their citizens in recent years from seeking jobs in the Middle East.

The New York University report expanded on the findings of an investigation conducted in Qatar and released last week, which concluded hundreds of Asian workers had paid recruitment fees.

Trump Gives OK for Montenegro to Join NATO

President Donald Trump gave his official approval Tuesday for Montenegro to join NATO, marking another step forward in the tiny Baltic country’s quest for NATO acceptance.

The White House says Trump looks forward to meeting with Montenegro and other NATO leaders next month in Brussels to welcome the 29th member of the alliance.

The White House statement said Montenegro’s accession will signal other countries seeking to join NATO that “the door to membership in the Euro-Atlantic community of nations remains open and that countries in the Western Balkans are free to choose their own future.”

The U.S. Senate voted overwhelmingly last month to support Montenegro’s NATO bid.

Trump is scheduled to meet Wednesday with NATO Secretary-General Jens Stoltenberg at the White House.

As recently as January, Trump called NATO “obsolete” because it had not defended against terrorist attacks. He also complained other NATO countries are not paying their fair share for defense.

“A lot of these countries are not paying what they are supposed to be paying, which I think is very unfair to the United States,” Trump told The Times of London.  “With that being said, NATO is very important to me.  There are five countries that are paying what they are supposed to. Five. It is not much.”

Russia has described Montenegro’s NATO membership as a “provocation” due to the country’s geographical proximity to Russia. The Kremlin has long seen the Balkans as inside its “sphere of influence.”

New French Refugee Camp Burns Down after Massive Gang Fight

A refugee camp in northern France burned down Monday night after a massive brawl involving more than 150 migrants broke out between rival groups of Kurds and Afghans, French authorities said.

The fire destroyed most of the Grande-Synthe migrant camp near Dunkirk and the fighting left several people injured, according to the regional prefect, Michel Lalande.

As many as 1,600 migrants were living in the camp at the time of the fire, many of whom lost all the meager possessions they had, Lalande said.

Around 500 migrants were taken to nearby gymnasiums, but the rest are unaccounted for, Lalande and Damien Careme, mayor of Grande-Synthe, told reporters Tuesday.

“There is nothing left but a heap of ashes,” Lalande said. “It will be impossible to put the huts back where they were before.”

Grande-Synthe was set up last year by the medical aid group Doctors Without Borders and housed mostly Kurdish refugees. Its population swelled in October after the notorious Calais refugee camp, located about 25 miles away, was shuttered and destroyed.

A large number of migrants arrived from Afghanistan recently, further increasing the camp population.

Corenne Torre, head of the group’s French operation, told the Associated Press that authorities are scrambling to find the unaccounted-for migrants.

“We just don’t know where they are,” she said, adding that some could be hiding in fear of authorities or fear of rival gangs at the camp.

Investigators are still trying to determine the exact cause of the fire, though Lalande and Careme said authorities believe it was set intentionally as part of Monday night’s brawl.

Torre said 10 migrants went to the hospital with injuries sustained during the fire. At least six migrants were wounded during the brawl, three of whom suffered stab wounds. Another migrant was left in critical condition after being hit by a car outside the camp.

Riot police intervened in the brawl, which led to further fighting between migrants and authorities.

Migrants have gathered for decades along the coast in northern France, with hopes of reaching Britain.

The Grande-Synthe camp has seen several violent incidents in recent months, with the most recent coming last week when migrants tried to block traffic and climb onto vehicles on a nearby highway.

IAAF Clears 2 Russian World Champions, 5 Others to Compete

Two world champions are among seven Russian athletes who were approved by track and field’s governing body on Tuesday to compete internationally while their country remains banned for doping.

 

The IAAF so far has approved 10 Russians this year to compete as neutrals.

 

The new list includes 110-meter hurdler Sergei Shubenkov and high jumper Maria Kuchina. Both won gold medals at the 2015 world championships in Beijing and could now defend their titles in London in August.

 

Russia was banned from the track at last year’s Olympics in Rio de Janeiro, but two athletes had been approved to compete: middle-distance runner Yulia Stepanova, a key whistleblower of Russia’s doping program, and long jumper Darya Klishina, the only Russian who took part on the track in Rio.

 

To be approved, athletes must show an IAAF doping review panel they have been adequately tested for drugs over a lengthy period by non-Russian agencies.

 

However, the IAAF said the athletes are still “subject to acceptance of their entries by individual meeting organizers,” such as the Diamond League series. The 14-meet circuit opens on May 5 in Doha, Qatar.

 

Shubenkov is set to be in demand as the reigning world champion, worlds bronze medalist in 2013 and two-time European champion.

 

Shubenkov and Kuchina, a past world and European indoor champion, were unable to compete at the world indoors in Serbia last month while their cases were under review.

 

“There can be no time constraints on a process which has been established to safeguard the rights and aspirations of the world’s clean athletes and is about rebuilding confidence in competition,” IAAF President Sebastian Coe said in a statement.

 

Kuchina is set to compete as Maria Lasitskene after getting married.

 

The IAAF said the other approved athletes are: high jumper Daniil Tsyplakov, who placed fifth at the 2015 worlds, pole vaulters Illia Mudrov and Olga Mullina, and race walkers Sergey Shirobokov and Yana Smerdova.

 

The IAAF previously cleared three Russians to compete as neutrals – pole vaulter Anzhelika Sidorova, sprinter Kristina Sivakova and hammer thrower Alexei Sokirsky.

 

The names of 17 athletes whose applications were rejected this year by the review panel have not been published, the IAAF said, adding it had received about 100 applications. Only 38 of those were endorsed by the Russian track federation, which remains suspended by the IAAF.

High Consumption, Trade Shift Harmful Effects of Pollution

Industrial air pollution causes nearly 3.5 million deaths a year, and international trade is shifting some of the harmful effects from consuming nations to producing nations, according to a study in the journal Nature.  

The authors say high consumption in the United States and Western Europe harms health in manufacturing countries such as China, and the pattern is continuing among developing nations in Asia.

“Take an example of a toy,” says Steve Davis, an Earth system scientist with the University of California, Irvine, and one of the report’s authors.  He explains that toys sold in America are most often made in China, displacing the emissions that would otherwise be released in the United States.  

“We’re effectively outsourcing the pollution that comes from the manufacture of that product,” he said.

750,000 premature deaths

Worldwide, the scientists estimate air pollution produced by exported goods and services caused more than 750,000 premature deaths in the baseline year of the study, 2007.

The report by Davis and his colleagues at Beijing’s Tsinghua University and other institutions found the cross-border effects of trade-related pollution is greater than the cross-boundary impact of industrial pollution caused by weather patterns.

Particulate matter from China was linked to 65,000 premature deaths outside of China, largely in Japan and the Korean peninsula, and including 3,100 deaths in the United States and Western Europe.  But U.S. and European consumption of goods produced in China was linked to nearly 110,000 premature deaths in China.

The researchers say that as China becomes a consuming society, its manufacturing is shifting, but the pattern is similar, as production and pollution are “outsourced by China into other up-and-coming industrialized countries like Cambodia, Vietnam, India,” said Davis.

Those countries are bearing the health costs.

The study examined 13 regions of the world and Davis said researchers were surprised levels of harm from emissions that were displaced from one country to another by outsourcing.

Trump order criticized

Davis notes that China’s industrial cities are plagued with pollution, and the country is working to clean up its air.  Yet as China expands its use of “scrubbers” that remove fine particulate matter from industrial emissions, environmentalist are accusing President Donald Trump of reversing the U.S. commitment to clean air.  On March 28, Trump signed a sweeping executive order to increase America’s energy independence and boost American jobs by reducing the federal government’s role in controlling emissions.

“There’s a concern that in the pursuit of economic gains, we’re maybe willing to now sacrifice our environmental quality,” Davis said, noting the United States has long “pointed a finger at China” for its emissions.

The study’s authors say environmental pollution caused by manufacturing, and by worldwide trade, requires a global response that balances the need for clean air and economic growth.

Chicago, United Lambasted Over Man Dragged Off Plane

Several minutes after a passenger recorded a video watched around the world that showed security officers dragging another passenger off an overbooked United Express flight at Chicago’s O’Hare International Airport, a smaller snippet of video showed an even more troubling scene.

There stood the passenger who had been dragged on his back to the front of the plane, appearing dazed as he spoke through bloody lips and blood that had spilled onto his chin.

 

“I want to go home, I want to go home,” he said.

 

The treatment of the passenger on Sunday night prompted outrage and scorn on social media, and anger among some of the passengers on the flight as the unidentified man was evicted.

 

The incident risks a backlash against United from passengers who could boycott the airline as the busy summer travel season is about to begin. For Chicago, it is another public relations nightmare, adding to its reputation as a city unable to curb a crime wave in some neighborhoods, which President Donald Trump has highlighted with critical tweets.

 

The embarrassing incident spiraled out of control from a common air travel issue – an overbooked flight. United was trying to make room for four employees of a partner airline, meaning four people had to get off the flight to Louisville.

 

At first, the airline asked for volunteers, offering $400 and then when that didn’t work, $800 per passenger to relinquish a seat. When no one voluntarily came forward, United selected four passengers at random.

 

Three deplaned but the fourth, a man who said he was a doctor and needed to get home to treat patients on Monday, refused.

 

Three men, identified later as city aviation department security officers, got on the plane. Two officers tried to reason with the man before a third came aboard and pointed at the man “basically saying, ‘Sir, you have to get off the plane,’ ” said Tyler Bridges, a passenger whose wife, Audra D. Bridges, posted a video on Facebook.

 

One of the security officers could be seen grabbing the screaming man from his window seat, across the armrest and dragging him down the aisle by his arms.

 

Other passengers on Flight 3411 are heard saying, “Please, my God,” “What are you doing?” “This is wrong,” “Look at what you did to him” and “Busted his lip.”

 

“We almost felt like we were being taken hostage,” said Tyler Bridges. “We were stuck there. You can’t do anything as a traveler. You’re relying on the airline.”

 

United Airlines’ parent company CEO Oscar Munoz late Monday issued a letter defending his employees, saying the passenger was being “disruptive and belligerent.”

 

While Munoz said he was “upset” to see and hear what happened, “our employees followed established procedures for dealing with situations like this.”

 

Chicago’s aviation department said the security officer who grabbed the passenger had been placed on leave.

 

“The incidence on United Flight 3411 was not in accordance with our standard operating procedure and the actions of the aviation security officer are obviously not condoned by the Department,” the department said in a statement.

 

After a three-hour delay, United Express Flight 3411 took off without the man aboard.

 

Airlines are allowed to sell more tickets than seats on the plane, and they routinely overbook flights because some people do not show up.

 

It’s not unusual for airlines to offer travel vouchers to encourage people to give up their seats, and there are no rules for the process. When an airline demands that a passenger give up a seat, the airline is required to pay double the passenger’s one-way fare, up to $675 provided the passenger is put on a flight that arrives within one to two hours of the original. The compensation rises to four times the ticket price, up to $1,350, for longer delays.

 

When they bump passengers, airlines are required to give those passengers a written description of their compensation rights.

 

Last year, United forced 3,765 people off oversold flights and another 62,895 United passengers volunteered to give up their seats, probably in exchange for travel vouchers. That’s out of more than 86 million people who boarded a United flight in 2016, according to government figures. United ranks in the middle of U.S. carriers when it comes to bumping passengers.

 

ExpressJet, which operates flights under the United Express, American Eagle and Delta Connection names, had the highest rate of bumping passengers last year. Among the largest carriers, Southwest Airlines had the highest rate, followed by JetBlue Airways.

 

___

 

Associated Press Writer David Koenig contributed to this report.

AP-WF-04-11-17 1128GMT

Trump Jobs Demands Force Automakers into Political Conflict

President Donald Trump’s relentless push for more manufacturing jobs has forced the auto industry into a delicate dance of contradictions in order to keep him happy, tell the truth, and avoid alienating customers in both red and blue states.

Toyota did the waltz with Monday’s announcement that it would spend $1.33 billion to retool its gigantic factory in Georgetown, Kentucky, an investment in the heart of Trump country that has been planned for years.

 

Trump wasn’t included in a company statement sent on Friday in advance of the announcement, but Kentucky’s governor and both of the state’s U.S. senators were quoted. In a paragraph added Sunday evening, Trump claimed credit for the investment, saying it is “further evidence that manufacturers are now confident that the economic climate has greatly improved under my administration.”

 

The company said the Trump quote was added at the administration’s request, but the White House said Toyota requested it and pointed to a poll of manufacturers showing record optimism. Later Monday, Toyota said that it had asked the White House for a Trump quote.

 

Either way, an investment of that size takes years to plan, and Toyota confirmed that it’s been in the works four or five years, long before Trump was elected. The company is switching its midsize Camry sedan, long the top-selling car in America, to new underpinnings that make it more modern and fun to drive. Although the investment doesn’t add jobs, it sustains 8,200 workers at the plant, which also manufactures the Toyota Avalon and Lexus ES 350 cars.

 

The dealings with Toyota show how businesses — especially automakers whose brands cater to both ends of the political spectrum — must tread carefully when dealing with Trump or other politicians. Depending on their response, they run the risk of angering a president who has authority to regulate their industry or alienating customers who are on both sides of the political divide.

 

“That’s kind of the reality of the situation you’re operating in,” said Joseph Holt, a University of Notre Dame associate professor who specializes in business ethics and leadership. “I think it’s a shame that they have to do this dance, but I understand why they’re doing it.”

 

All politicians play the same game as Trump, taking credit for accomplishments they had nothing to do with, said Erik Gordon, a business professor at the University of Michigan. What makes Trump unique is the demand for jobs announcements was done publicly rather than in private conversations, Gordon said.

 

Many CEOs grudgingly supported President Barack Obama’s health care plan even though they disagreed with it, Gordon said.

 

“With President Trump, the difference is the volume is up to 11 or 12 instead of at 10,” he said. “I don’t find him to be that different in terms of what he wants credit for, and putting the arm on people to get on his program, other than he does it publicly.”

 

Detroit automakers are in the most precarious position, Gordon said, because they are perceived as more American. Take General Motors. Its Chevrolet brand, with the top-selling Silverado pickup truck, caters largely to America’s mid-section, which largely voted for Trump. But GM’s Cadillac luxury brand wanted so much to distance itself from the Midwest that it moved its offices to Manhattan, which supported Democrat Hillary Clinton.

 

If GM either confronts Trump or is continually in his Twitter sights, that could upset the automaker’s lucrative customer base in the Midwest. If the company is too supportive, it could hurt GM’s efforts to grow Cadillac sales on the mostly blue coasts.

 

That’s why with few exceptions, GM, Ford and Fiat Chrysler have made jobs announcements that largely were in the works long ago, Gordon said.

 

Because the country is so politically polarized, a social-media fueled PR mistake for or against an issue could touch off a boycott that can quickly hurt a company, Gordon said.

 

“Now the companies are really under the magnifying glass,” he said. “Many customers want to know who you are and what you stand for before they even think about your product.”

 

Holt and others say companies shouldn’t allow such deception and would be better off in the long run by not playing politics.

 

While the Trump administration was showing a commitment to manufacturing with the announcement, it may send a different message to government regulators such as the Environmental Protection Agency or the Occupational Safety and Health Administration should there be any problems with a factory, said Robert Weissman, president of the consumer advocacy group Public Citizen.

 

“Do those agencies feel constrained from enforcing the law because the president has just associated himself with that company or investment?” Weissman asked. “It’s just on its face inappropriate.”

 

In Ancestral Home, Turkish Affection for Erdogan Resonates

God comes first in this mountaintop village on Turkey’s Black Sea, the saying goes. Then, according to adoring villagers, comes local boy Recep Tayyip Erdogan, today one of the most transformational, polarizing figures in modern Turkish history.

Nestled among tea plantations, the village of Dumankaya in the rugged province of Rize oozes the fervent loyalty that has propelled Erdogan, 63, to one electoral triumph after another since he took power as prime minister in 2003.

Now the Turkish president is hoping that pious Muslim bedrocks of support like Dumankaya will help deliver him another win, this time in Turkey’s April 16 referendum. The vote could extend Erdogan’s rule for many years and, in his opponents’ view, further erode Turkey’s challenged democracy.

For many Turks, Sunday’s vote on whether to expand the powers of the Turkish presidency is not a dry constitutional matter. For people on both sides of the political divide, it’s all about the outsized ambitions of one man, Erdogan.

Fisherman Birol Bahtiyar, wearing a cap emblazoned with a “Yes” slogan, dismissed suggestions by opponents that the referendum was a power-grab by Erdogan or that he was leading Turkey into a one-man regime.

“In the past 14 years, Turkey stepped into a new age,” said the 49-year-old as he and his friends fixed their nets at Rize’s harbor. “I will vote yes because I trust him. There is no such thing as a one-man rule. We still have an assembly, a parliament. We have confidence [in the proposed system].”

The constitutional amendments would shift Turkey’s system from a parliamentary to a presidential system, in one of the most radical political changes since the Turkish republic was established in 1923. Opponents fear that the changes will give the president near-absolute powers with little oversight, turning the NATO country that once vied for European Union membership into an authoritarian state.

For ‘the people’

But for the socially conservative and pious residents of Rize, such arguments ring hollow. To them, the region’s most famous son is a reformist leader who has brought unprecedented economic growth and prosperity to Turkey and provided improved health care, education and large infrastructure projects.

In Erdogan — whose parents and siblings were born in Dumankaya (Smoky Rock in English for the fog that frequently hangs over it) — they see a local who has given a greater voice to the pious — who felt marginalized under previous governments, which enforced secular laws barring Islamic headscarves in schools and public offices.

They believe Erdogan — who has ruled Turkey for over a decade, first as prime minister and as president since 2014 — is a strong leader who has provided political stability, ending the political squabbles that plagued Turkey in the 1990s.

Voters in Rize have backed Erdogan by a wide margin in a long string of election victories and promise to do so again on April 16. They support his ambition to turn Turkey into one of the world’s top powers by 2023, when the country marks its centenary.

Mehmet Celik, a Dumankaya resident, sees the president as a larger-than-life trail-blazer and fighter against Turkey’s perceived enemies.

“For us, God comes first. Then comes Recep Tayyip Erdogan,” said Celik. “He supports the people and the people support him.”

Two sides to coup

Celik believes Erdogan rescued Turkey from last summer’s failed coup and feels that a strong presidency would protect Turkey from greater calamity. Turkey has blamed the coup on the followers of the U.S.-based Muslim cleric Fethullah Gulen, a charge Gulen has denied.

“They [the Gulenists] would have ruined us. If we had fallen into their hands, we would have been destroyed. Why would we not vote ‘Yes?”‘ Celik said. “If our president did not exist, we would have been in a miserable state.”

But critics say Erdogan has used the coup attempt to purge his critics. More than 150,000 people have been taken into custody, fired or forced to retire from Turkey’s armed forces, judiciary, education system and other public institutions since the coup attempt.

Ismail Erdogan, a cousin of Erdogan and the chief administrator of Dumankaya, points at a long list of projects either launched or completed under Erdogan’s rule, including a major coastal highway, the Recep Tayyip Erdogan University, a hospital.

“He brought infrastructure, natural gas. He is bringing an airport. We had never seen such things. He brought a giant hospital,” Ismail Erdogan said, describing his cousin as a serious child who liked to talk about soccer and commanded respect even at an early age.

Speaking in a recently renovated local government building in Dumankaya, Ismail Erdogan also praised his cousin for standing up to Europe, following a dispute last month over restrictions imposed by the Netherlands and Germany on Turkish ministers holding referendum campaigns there.

“Let’s not [join] the European Union, we don’t need it,” Ismail Erdogan said. “We are self-sufficient.”

Erdogan campaigned in Rize recently to court the votes of his fellow townsmen, symbolically launching the start of construction for an airport that will serve Rize and the neighboring province of Artvin. In a speech laced with nationalist and anti-European rhetoric, Erdogan also promised that the construction of mountain tunnel pass would soon be finished.

Among the crowd of adoring supporters — waving flags and banners emblazoned with the word “Yes” — was 22-year-old religious studies student Leyla Erdeniz. Her affection for Erdogan runs so deep that she moved to Rize to study at the university named after him.

“A ‘Yes’ result will be very beneficial to our country,” the university student said. “There will be no trace left of the old Turkey.”

Belarus Crackdown Throws US Sanctions Relief in Doubt

The Trump administration must decide by the end of this month whether to grant Belarus continued relief from U.S. economic sanctions despite a stiff government crackdown on street demonstrations last month.

The renewal decision is considered a low-level priority for the administration, which is facing bigger questions about U.S. relations with Russia and China, and with most major diplomatic positions still unfilled.

But whether the United States renews the sanctions relief or instead returns to blacklisting nine major Belarus companies is an early test for the Trump administration on the importance it puts on human rights versus efforts to coax countries in Russia’s orbit to turn to the West.

The sanctions waivers, which began in 2015 and were extended twice last year, were tied to domestic political reforms and intended to encourage Belarus, which has long historical ties to Russia, to move closer to the European Union and the United States.

Now, however, U.S. officials are alarmed by the arrests of hundreds of people last month during an attempt to hold a street protest in the capital Minsk, and concerned if continuing sanctions relief could be seen as ignoring the crackdown.

Belarus authorities last month raided a human rights group’s offices and used violence against peaceful protesters, rights groups say.

“This most recent crackdown sharpened people’s focus,” said a U.S. congressional aide, speaking on the condition of anonymity. “Now there is a real question about whether or not they [the sanctions] should be reimposed.”

April deadline

The decision must be taken by the end of April. If the administration makes no decision, the sanctions will be reimposed.

NATO members, including Poland and the Baltic states, feel threatened by what they see as increased Russian intervention in Europe, including Moscow’s annexation of Ukraine’s Crimea region in 2014.

“Belarus is so important from a strategic point of view and it’s so dependent economically on Russia that we are really very concerned,” said Piotr Wilczek, the Polish ambassador to the United States. “Belarus is becoming more and more part of this wider Russian problem we have.”

The Trump administration is inclined to renew the sanctions relief, but likely would wait until the last minute “to make sure they don’t do anything awful,” said a U.S. official, also speaking on condition of anonymity.

State and Treasury Department officials declined to comment in detail on the Belarus sanctions. The Belarus Ministry of Foreign Affairs declined to comment.

President George W. Bush in 2006 blacklisted top Belarus officials, including President Alexander Lukashenko, for undermining the country’s democratic processes or human rights abuses. The United States later added large Belarus companies to the sanctions list.

But in 2015, Lukashenko released political prisoners and indicated he was open to better relations with the West. That October, President Barack Obama temporarily lifted sanctions on nine Belarus companies, including petrochemical conglomerate Belneftekhim and tire manufacturer Belshina.

Now, however, Lukashenko appears to be keeping his country firmly in Moscow’s orbit. In a letter to him last week, four U.S. senators said they were concerned over the crackdown and that he decided to allow Russia to conduct “provocative” military exercises in Belarus later this year.