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. Day by Day with VOA . Al-Qaida Fighters Continue to Operate in Afghanistan, says Foreign Minister Ayaz Gul Islamabad 27 Aug 2002 15:30 UTC    Listen to Ayaz
Gul's report (RealAudio) Gul report -
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Visiting Afghan Foreign Minister Abdullah says the international war against terrorism is a long campaign, and more joint efforts are needed in this fight. Speaking to reporters in Islamabad, Mr. Abdullah told reporters that Pakistan President Pervez Musharraf assured him Afghanistan has his full support in eliminating terrorism from the region. "We all agree that terrorism is not eradicated or eliminated," he said. "Their bases in Afghanistan have been destroyed, but they are not being eradicated from the region or even from Afghanistan. In Afghanistan, it still continues to be one of our priorities to focus on the pursuit of al-Qaida leaders and Taleban leaders. But I think that effort is a joint effort." Mr. Abdullah says he hopes Pakistan and Afghanistan can establish some sort of formal mechanism for cooperation between their security forces to better deal with the threat from terrorists. Senior Afghan leaders have repeatedly said they suspect that the top al-Qaida terrorist, Osama bin Laden, and many of his colleagues are hiding in Pakistan. They are believed to have fled to escape the U.S.-led military assaults on terrorist bases in Afghanistan that launched last year after the United States was attacked. Pakistani authorities have rounded up as many as 300 suspected al-Qaida militants in the past year. Many of them have been handed over to the United States. General Tommy Franks, commander of American military operations in Afghanistan, has said he thinks the anti-terror war now needs start shifting focus to countries bordering Afghanistan.
. Armitage Confident of Support For Attack Against
Iraq U.S. Deputy Secretary of State Richard Armitage says Washington is confident of getting international support if it decides to overthrow Iraqi leader Saddam Hussein. After two days of seeking Japanese backing for such a plan, Mr. Armitage told reporters in Tokyo the Bush administration has not decided how or when to proceed against Baghdad. He declined to say how many countries have expressed support for the idea. In Beijing, Iraqi Foreign Minister Naji Sabri continued talks aimed at securing Chinese help in countering the U.S. threat to his country. Mr. Sabri met with Chinese Vice Prime Minister Qian Qichen, who said Beijing is concerned the growing crisis over Iraq is hurting stability in the Middle East. He also said any disagreement between Iraq and the United States should be resolved peacefully through the United Nations. But at the same time, Mr. Qian urged Iraq to allow international weapons inspectors to return, as a first step to lifting sanctions imposed after the 1991 Persian Gulf War. Some information for this report provided by AP, AFP and Reuters.
. Armitage Discusses Possibility of US Attack on Iraq With Japan Amy Bickers Tokyo 28 Aug 2002 10:37 UTC Listen to
Amy Bickers' report from Tokyo (RealAudio) Bickers
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U.S. Deputy Secretary of State Richard Armitage spent two days huddled in talks with top Japanese officials about Iraq and related issues, but told a crowded news conference that he did not make any specific requests of Tokyo. After meeting with Japanese Vice Foreign Minister Yukio Takeuchi and leaders of the ruling coalition, he underscored the Bush Administration's contention that the Iraqi government of Saddam Hussein presents a menace.
Mr. Armitage also said that Iraq might be harboring al-Qaida terrorists in areas controlled by the Kurdish minority. He said U.S. allies would be briefed on the evidence before Washington decides to take any military action. Mr. Armitage, in Tokyo for the last leg of a five-nation Asian tour which took him to Sri Lanka, India, Pakistan and China, says that Washington plans to make a persuasive argument for pushing the Iraqi leader out of power. "We believe as we move forward that we will be able to make a very compelling case for regime change. Having said that, the President of the United States has made it very clear that he has made no decisions and that he is intent on full consultations [with allied nations]," he said. Japan is a staunch ally of the United States, but its position on a strike on Iraq remains unclear. The country has a pacifist constitution, which limits the role of the country's so-called self defense forces. Parliament passed laws last October allowing the Japanese military to provide non-combat support to the U.S. military anti-terror campaign in Afghanistan. But the legislation is temporary, and limits Japan's cooperation to those related to the September 11 terror attacks. Japanese newspapers say that some lawmakers in the ruling coalition doubt that Washington has just cause for attacking Iraq. But sources from the Foreign Ministry say that Japan might offer humanitarian assistance to refugees and other displaced people if and when a military strike takes place.
. Bush
Makes Case Against Saddam in Talks with Saudi Ambassador
President Bush and Saudi Prince Bandar met for about an hour before lunch with their families at the president's Texas ranch.
Mr. Fleischer said they discussed the president's desire to remove Saddam Hussein from power but says there has still been no decision on attacking Iraq. "On the topic of Iraq, the president stressed that he has made no decisions, that he will continue to engage in consultations with Saudi Arabia and other nations about steps in the Middle East, steps in Iraq," pointed out Mr. Fleischer. "And the president made very clear again that he believes Saddam Hussein is a menace to world peace, a menace to regional peace, and the world and region will be safer and better off without Saddam Hussein." Saudi Arabia opposes any U.S. military action against Iraq and says it will not allow U.S. jets to use the kingdom as a staging area for an attack. That refusal has led to another round of U.S. media reports suggesting that Saudi Arabia is supporting terrorists. Earlier this month, 700 relatives of people killed in the September 11 attacks filed suit against the Saudi and Sudanese governments claiming that they helped finance Osama bin Laden's terrorist network. Mr. Fleischer said the lawsuit did not come up in Tuesday's talks but the president did express his confidence in the kingdom's commitment to fighting terrorism. Hours before the meeting, Mr. Bush reaffirmed what he called the "eternal friendship" with Saudi Arabia in a telephone call to Saudi Crown Prince Abdullah. On the divisive diplomatic issue of Iraq, Mr. Fleischer said President Bush welcomes the chance to make his case against Saddam Hussein. "Every time the president meets with foreign leaders and the topic of Iraq comes up, the president thinks it is a constructive exchange of ideas," he said. "He listens carefully to the thoughts that people have about how to deal with Iraq. He hears them say and agree with him that Saddam Hussein is a threat, that Saddam Hussein is a menace. And then the president makes his case about why the world would be better off without Saddam Hussein there." Mr. Fleischer says the president also asked Saudi Arabia to help resolve custody cases involving children who have been abducted from the United States. The U.S. State Department says Saudi courts almost always side with Saudi fathers in custody cases involving non-Saudi mothers.
. Business Takes Prominent Place at Johannesburg World
Summit
A decade ago, business leaders went to the Earth Summit in Rio, but the stars of the summit were environmental groups and governments. Industry, if anything, was seen as part of the problem. In Johannesburg, business is taking a much more prominent role, and it wants to be seen as part of the solution. Mark Moody-Stuart is a former chief executive of the Shell Oil Company. Today he heads a group called Business Action for Sustainable Development. "For some time we have realized in business that simply delivering economic benefit is not good enough," he said. "We have to also address the environment and, very importantly for sustainable development, the social implications, the social consequences and social benefits of economic activity. But we know that we cannot do that on our own. We need to do it in partnership with others, with NGO's with governments, with local communities, with local governments." The Johannesburg summit is about concrete results. Delegates are focusing on ways to implement the lofty ideals agreed to in Rio. But action takes money, and neither environmental activists nor local communities generally have much of it. Business however, does. The partnerships being talked about at the summit aim to combine the expertise of non-governmental organizations or local governments with the financial backing of business. But some activists remain skeptical. Chee Yoke Ling of the Third World Network says nobody is against partnerships in theory, but there are potential problems. "Can you have a partnership between the polluter and the victim? Can you have a partnership between those who have lost their land rights with those who have come to take away their land rights?", she asked. "And therefore we want to raise the issue that there are many contradictions and conflicts." Ms. Chee says it is crucial that any collaboration with business must be a partnership of equals. She says business must be accountable in order for the idea to work. "We want governments to play the role of the arbiter of the different interests in society," she said. "Yes, we will always want to have collaboration. But they must be among real partners, respect. Not when you bring unequal partners together and this is something that we are very concerned about." Mr. Moody-Stuart admits that it is not easy for businesses to earn the confidence of activists who have in some cases campaigned against them. "If we are to have these partnerships and they are to work, we need to build trust," he said. "There is not a great deal of trust in the world between these different actors, we need to build on it." Both sides agree that the way to build trust is by making sure businesses are transparent about the way they work in partnership with NGO's, governments, and communities. They need to set clear targets and then report honestly about the progress toward meeting them.
. Gaza
Violence Prompts Israel to Cancel Security Talks
Israeli Defense Minister Binyamin Ben-Eliezer announced Wednesday he had called off his meeting with Palestinian Interior Minister Abdel Rzek Yehiyeh. In his statement, Mr. Ben-Eliezer specifically referred to a mortar attack Tuesday against a Jewish settlement in the Gaza Strip and other violent incidents in the territory. The two men had planned to discuss further implementation of a phased withdrawal from Palestinian self-rule areas of the West Bank and Gaza Strip. Under the plan, Israeli soldiers are to pull out of areas that are quiet and to restore security control to the Palestinian Authority. Israeli soldiers last week withdrew from Bethlehem in the West Bank. The next pullbacks were to have taken place in Hebron, also in the West Bank and the Gaza Strip. But the plans appear to be on hold because of continuing Israeli concerns that Palestinian militant groups are planning to carry out more attacks. In a pre-drawn raid Wednesday, Israeli tanks, backed by helicopters and naval boats moved into the Palestinian self-rule area of Sheikh Ajli on the coast, south of Gaza City. The operation began after barrels were spotted floating in the sea, arousing suspicion that arms were being smuggled.
. Iran
Reported Harboring Top al-Qaida Figures The Washington Post, citing unidentified Arab intelligence sources, reports Iran is sheltering two key members of the al-Qaida terrorist network, along with dozens of fighters. The newspaper says one of the two key al-Qaida figures is Egyptian Saif al-Adel, who is on the U.S. FBI's most-wanted list. The other is Mahfouz Ould Walid - a Mauritanian, who U.S. officials reported had been killed in eastern Afghanistan in January. The two men are said to have assumed operational control of al-Qaida's military and ideological committees, after Osama bin Laden and his second-in-command, Ayman Zawahiri, went into hiding. According to the Washington Post report, the idea for the transfer of power arose after the September 11 attacks in the United States, when it became apparent Washington might attack Afghanistan and capture or kill some senior al Qaida members. The report says the need to put the transfer into practice became even more apparent in March, when senior al-Qaida planner Abu Zubaydah, a Palestinian, was captured in Pakistan. The al-Qaida members are said to be staying in hotels and guesthouses in the Iranian border cities of Mashhad and Zabol. The Washington Post says the Arab intelligence sources, cited in its report, are outside Saudi Arabia and they do not want to disclose their names or countries.
. Iranian President to Seek Greater Constitutional Authority VOA News 28 Aug 2002 12:56 UTC
Iranian President Mohammad Khatami says he will introduce a bill in parliament to strengthen his powers in line with the country's constitution. The reform-minded president told a Tehran news conference Wednesday he regrets that certain internal forces are trying to curtail his authority. Mr. Khatami said his repeated warnings about violations of the constitution have been ignored, and that the president should be empowered to fulfill his constitutional responsibilities. He acknowledged his government has failed to implement promised reforms, but said Iranians know the many obstacles his program is facing. Mr. Khatami won landslide victories in two presidential elections, in 1997 and again last year, with promises of sweeping social and political changes. Reformers also have a majority in parliament, the Majlis. But their ability to carry out reforms is curtailed by the Council of Guardians, which must approve all bills passed by parliament. The council, dominated by conservative clerics, has vetoed many bills on the grounds they were un-Islamic. Mr. Khatami also criticized Iran's hardline judiciary for closing down pro-reform newspapers and putting journalists in jail. He said such moves violate journalists' constitutional rights. The judiciary has closed down more than 80 reformist newspapers over the past two years. Some information for this report provided by AP and AFP.
. Left-Wing Presidential Candidates Contribute to Economic Uncertainty in Brazil Bill Rodgers Rio de Janeiro 27 Aug 2002 19:59 UTC Listen
to Bill Rodgers' report from Rio de Janeiro (RealAudio)
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Behind in third place is Jose Serra, the candidate of the centrist government of President Fernando Henrique Cardoso. Mr. Serra is viewed as the candidate most likely to continue Mr. Cardoso's economic stabilization policies. While some surveys show his support is growing, he still must overtake Mr. Gomes to have a chance at the presidency. To win, a candidate must receive an absolute majority in the October 6 election. If not, there is a run-off election between the two top vote-getters on October 27.
Lula da Silva grew up poor, went on to become a trade union leader, and then ran for president three times. Now in his fourth run, he has moderated much of his leftist rhetoric of the past, including threats to default on Brazil's debt. While promising to change the country's current economic model, Mr. da Silva also makes clear he does not intend to set up a socialist system in Brazil.
"If the internal investors are not comfortable with these candidates, then how can we expect the external investors and the correspondent banks to feel comfortable," he said. "So it is this interaction between investors in Brazil's internal debt instruments, which is banks, mutual funds, and individuals and companies, the interaction of those investors with the political system, with the candidates, which is crucial here to solve the problem. And it's obvious that what Lula, for example, has said recently trying to moderate his tone, people just simply cannot forget the inclinations that he's had in the past."
There is no solution for Brazil until it completely abandons the neo-liberal economic model, in which the market is solely responsible for productivity," he said. Instead, Mr. Gomes called for a partnership between the public and private sectors to create new tools to solve Brazil's problems. Political analyst David Fleischer says Mr. Gomes is less radical than he seems. Mr. Fleischer, who teaches politics at the University of Brasilia, also believes Mr. Gomes will turn out to be more moderate because he has made a political alliance with top members of a right-wing party, the PFL. "My reading on him is that he's a sheep in wolf's clothing, that he's masquerading as a wolf but he's really a sheep because he's an anti-elite within the same of system," he said. "He's been part of this system ever since the late 70s when he began in politics in the state of Ceara. But his position and his campaign rhetoric is very, very critical and quite severe of Fernando Henrique's government and the economic model, and in some points even more severe than Lula's criticism. But his government would be dominated by the PFL if he was elected, and I'm sure the PFL would not allow him to do anything radical." But investors like Daniel Tillotson remain concerned, especially over how a new president will deal with Brazil's debt of $250 billion. Mr. Tillotson said he is not encouraged by what he has heard from Mr. Gomes regarding the debt. "He has said enough about restructuring of internal debt in the past that people have to take it seriously because, given what's already happening it's obvious that, regardless of who is the next president, at some point in time the markets are going to probably put him under pressure, and what really matters then is how the future president reacts at such time," said Mr. Tillotson. "If you already have an inclination towards debt restructuring, then obviously you will revert to that inclination." Recent comments by Mr. Gomes, in which he dismissed market concerns, also are likely to weigh heavily among investors. But in the end it is not investors who will choose the next president, but Brazilian voters, and what the opinion polls indicate so far is that they want a change from the policies of the current government.
. Pakistan Reportedly Arrests 12 Muslim Militants with al-Qaida
Links Pakistani authorities are reported to have arrested 12 members of an outlawed militant group linked to al-Qaida terrorist network. News reports quote an unnamed official as saying the arrests were made Tuesday, when Pakistani intelligence officers raided the office of the Harkat-ul-Mujahedeen militant group in the northwestern city of Peshawar. The official said a number of weapons and explosives were seized during the raid. He said the detainees include Pakistanis and at least one Afghan. Harkat-ul-Mujahedeen is one of the major militant groups fighting in Indian Kashmir. It maintained close ties with al-Qaida and trained its fighters in Afghanistan. Pakistani President Pervez Musharraf banned the group in January. Some information for this report provided by AP and AFP.
. Shevardnadze Visits Pankisi Gorge Rebecca Santana Moscow 27 Aug 2002 13:29 UTC
Georgian President Eduard Shevardnadze has traveled to the country's Pankisi Gorge region to show his support for a military operation aimed at clearing the area of militants. The gorge is a source of controversy between Georgia and neighboring Russia.
The Georgian president flew by helicopter to the village of Matani, where the funeral was being held. After the service, Mr. Shevaradnadze spoke to hundreds of villagers and described the alleged Russian bombing as a tragedy. Georgia has often accused Russia of bombing Georgian territory in its fight against separatists in the breakaway Russian republic of Chechnya. Moscow denies that it launched an air strike on Georgian territory when the man was killed. But Russia accuses Georgia of harboring Chechen terrorists in the Pankisi gorge. The United States strongly criticized Russia for the alleged air strike. Russia would like to send its own troops into the region to search for the rebels. But Georgia says it is handling the situation. The issue became more heated a few days ago when Georgia decided to send about 1,000 troops into the gorge to root out militants. Earlier this year, the United States sent military advisors to Georgia to train its military to fight Islamic insurgents who Washington believes may be hiding in the Pankisi gorge. Russia has been fighting separatists in Chechnya since 1999. While Russia says it has the situation under control, Russian troops, civilians and Chechen separatists are killed almost every day. Last week, a Russian military helicopter ferrying troops crashed in Chechnya, killing 118 people. Russian media have reported that Chechen separatists shot down the helicopter with a surface-to-air missile, although Russian officials have strongly denied this.
. Talks Open on Resuming Korea Transport Links
Talks are under way in Seoul between delegates from North and South Korea on reconnecting rail and road links across the heavily guarded border that divides the two countries. Both sides hope to agree on the construction methods and a schedule for the project. Delegates from the two Koreas presented schedules and proposals for reconnecting cross border rail and road links during their first day of talks in Seoul. Observers say comments made by the North Korean economic delegation indicate a new eagerness to expedite plans to re-establish links across the Demilitarized Zone separating the two states. But Scott Snyder, the Korea representative to the Asia Foundation, says the issues being discussed this week are no different from those discussed two years ago. "The delegations are really talking about exactly the same issues that had been discussed in the fall of 2000," he said. "It really depends if we see results from this dialogue." There are indications that the two sides have different goals as to which rail link should be established. One academic says North Korea is under pressure from Russia to have the railway meet up with the Trans-Siberian railroad in the east, but South Korea would prefer connecting a western link first. "It seems that Russia is very much interested in the Siberian line," said Lee Jung-hoon, a professor of international studies at Yonsei University. "But from an inter-Korea context, first things first, we have to re-link the Kyungdui line first." Seoul completed work on its side for the western rail link following a landmark summit between the leaders of North and South Korea two-years ago. But relations chilled last year and North Korea has yet to start construction on its side. Professor Lee says before progress can be made, North and South Korea need to hold military meetings. Also on the agenda this week are plans for an industrial park to be built in North Korea and reunions of families divided by the border. The three day meeting is a follow up to ministerial level talks held earlier this month. The meeting also coincides with talks on cultural exchanges and North Korea's participation in the Asia Games being held in Seoul this year.
. UN's Annan Urges Zimbabwe to Adopt Fairer Land Reform Program Elaine Johanson United Nations 27 Aug 2002 18:21 UTC Listen
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United Nations Secretary-General Kofi Annan, traveling through the drought-stricken region of southern Africa, has called on the government of Zimbabwe to institute a more equitable and sustainable land reform program that would benefit the landless poor. Secretary-General Annan says there can be no lasting solution to the food crisis in Zimbabwe unless the government phases in a fully-funded land reform program that gives adequate support to new small farmers. He says it should also make sure that displaced agricultural workers and commercial farmers are compensated for their loss of land and jobs. The secretary-general's statement comes amid a rising chorus of criticism about Zimbabwe's often violent seizure of land from white farmers, with much of it turned over to former soldiers or political cronies of President Robert Mugabe. U.N. spokesman Fred Eckhard says the international community generally agrees that Zimbabwe's land reform policy has helped turn the country from a food surplus nation into a food deficit nation. "It's probably pretty widely acknowledged that the land reform crisis has had an impact on food production in Zimbabwe," said Mr. Eckhard, "therefore, in a time of food crisis triggered by drought and other factors, yes, it has aggravated the crisis." Major donors of food aid have demanded some assurance that the Mugabe government is ready to adjust its policies to accommodate the emergency. Nearly half of the 13 million people facing starvation in southern Africa live in Zimbabwe. Relief agencies worry that donors will not be as generous as they could be unless they see significant change in the government's attitude.
. US Changes Approach in Fighting Corporate Fraud Barry Wood Washington 27 Aug 2002 21:30 UTC Listen
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There's been an unprecedented wave of corporate fraud in the United States this year. Accounting irregularities have brought three large companies, Enron, Arthur Anderson and WorldCom, to their knees. The government appears to be changing their approach to this wave of business scandals.
But more recently there have been signs that things are changing. On July 24 the owners of the failed Adelphia cable television company in Pennsylvania were led away in handcuffs and charged with securities fraud. A week later the chief financial officer of WorldCom, Scott Sullivan, and his deputy were handcuffed and brought into a New York court on fraud charges.
News reports said that government prosecutors are gathering evidence for going after the former chief executives of both Enron and WorldCom. Those individuals, Jeffrey Skilling and Kenneth Lay of Enron, and Bernard Ebbers of WorldCom, have not yet been charged. They continue to maintain extravagant lifestyles even though their business reputations are in tatters. In a speech last week in California, President Bush expressed delight that the corporate leaders were being charged. "And that's what happening," he said. "We can not let a few, and I emphasize a few, set the tone for the many who are decent, honorable citizens of our country, who take care of their shareholders, who are good to their employees, who tell the truth." Enron, the energy trading company based in Houston, continues to operate even though it has sought protection from its creditors by declaring bankruptcy. With former Enron executive Kopper now cooperating with prosecutors, experts say it is just a matter of time before others are charged. The current chief executive of Enron, Stephen Cooper, fully supports the government's criminal investigation. "I think this [the Kopper plea agreement] is the first step in the unfolding of the investigations that the company has been cooperating with for months," he said. "And I think it is a good first step and hopefully if others are held accountable and responsible for the meltdown [of the company], I think that will be a good thing." At this stage about all that can be said with certainty is that a steadily increasing stock price was central to the deal making expansion that characterized both Enron and WorldCom. The stock price was the currency that both companies used to finance their many acquisitions. With the stock market enduring turbulence throughout 2001 and particularly after September 11, finance officers were under immense pressure to bend the rules and to maintain the stock price. But the schemes failed, the stock prices collapsed, and the companies descended into bankruptcy - Enron in December 2001, WorldCom in June 2002.
. US
May Send Envoy to North Korea A top U.S. official says the Bush administration may send a senior diplomat to North Korea, as part of efforts to improve ties with the reclusive communist nation. Deputy Secretary of State Richard Armitage told reporters in Tokyo Wednesday that recent messages from North Korea indicate Pyongyang would welcome such a visit. The assistant secretary of state for East Asian and Pacific Affairs, James Kelly, was due to visit Pyongyang earlier this year. But his trip was put off after a clash between the North and South Korean navies June 29 that killed several people on both sides. Japan's news agency, Kyodo, says Mr. Kelly will visit North Korea in mid-September, but there is no official confirmation of that. Meanwhile, the senior U.S. arms control negotiator, Undersecretary of State John Bolton, is in Seoul to discuss North Korea's missile program and suspected development of weapons of mass destruction. In Tokyo earlier this week, Mr. Bolton said Washington remains concerned about North Korea's weapons development. U.S. - North Korean relations have soured under President Bush's administration. But last month, Secretary of State Colin Powell and North Korean Foreign Minister Paek Nam Sun met on the sidelines of the annual Asia-Pacific forum and agreed to work toward resuming talks. Some information for this report provided by AP, AFp and Reuters.
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.. Work Continues at Ground Zero as First Anniversary of Attacks Approaches Jenny Badner New York 28 Aug 2002 20:00 UTC Listen
to Jenny Badner's report from New York (RealAudio)
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At first, it is difficult to tell the difference between the end of the cleanup and the beginning of the rebuilding phase at Ground Zero. Dozens of construction and ironworkers with hard-hats and goggles are covered with dirt in a massive pit. They haul steel beams, operate cranes, and drive bulldozers across soft muddy terrain. It could take months, or even years for New Yorkers to decide on a plan to memorialize the victims of the attack and revitalize the devastated area. In the meantime, there is plenty to do. Construction workers continue to repair less talked about damage on the 6.5 hectares that was the World Trade Center.
Mr. O'Connor and his co-workers know Ground Zero all too well. After the attacks, they helped remove nearly two-million tons of debris. Together, they carried the remains of some of the victims recovered. "I think there is a bond, an emotional bond knowing that we are here to rebuild a site where such an event, an emotional event took place one-year ago," emphasized Mr. O'Connor. Every day nearly 30,000 people stare into the core of the World Trade Center, catching a glimpse of history and the final resting place for so many victims. Below ground, construction crews handle heavy machinery and long copper-colored pipes. Nearby, one worker looks on, smoking a cigarette, leaning on the steering wheel of a bulldozer. After one-year of hard labor there, some workers have started to view Ground Zero simply as a construction site. Construction worker Bobby Jackman removes his protective goggles and places them on top of a yellow hard hat for a short break. He is covered head-to-toe with mud from a day of work in the pit. "It is a little spooky now and again, but other than that, it is still, it is just a job," he says. But for a manager of the Verizon telephone company, George Famulare, who has returned to Ground Zero nearly every workday for the past year, the emotional effect of the terrorist attack has barely worn off. He says sometimes it is difficult to return to the site. More often he calls it comforting to be there and remember the disaster. "I can not believe it is a year. It is a year. It seems like yesterday for me," he says. "I mean, it is a year and there is still so much more. We still have another 18-months of work to do, so I do not know." Mr. Famulare says the task that lies ahead is enormous. He is part of a team that is still working to permanently restore telephone service to Lower Manhattan, which was wiped out from the impact of the collapse. Mr. Famulare notes the restoration phase is still in its infancy. But operating engineer Bill Noesges is not put off by the work that lies ahead. He calls it the most important job of his life. He arrives at Ground Zero by motorcycle, looking like a stereotypical "tough guy." He wears a black bandana on his head and a cutoff shirt that reveals giant muscular arms. When asked about the September 11 attacks, Mr. Noesges' eyes swell with tears. "The one-year anniversary, my heart goes out to all the people that lost their loved ones," he says. "I am emotional right now. It is very sad and [I hope] that all the locals pull together and do what everybody wants to be done down here." Mr. Noesges says he is sad every day at Ground Zero. But he says he is determined to restore the area with one goal in mind; to prepare the grounds for a memorial that would give relatives of victims closure and a place to go to remember their loved ones.
. Brazil Hopeful Markets to Stabilize With New Credit
Line The Brazilian government hopes a pledge by major banks in New York this week to maintain their credit lines to Brazil will help stabilize financial markets nervous over the country's economic future. But market confidence may be slow to return. Brazil's top economic officials got the support they were seeking this week, when major U.S. and European banks promised to maintain their lending to Brazil at current levels. The pledge was made in New York Monday, following a meeting between representatives of 16 banks and Brazil's finance minister and central bank chief. The commitment by the banks is the latest effort to stave off a financial meltdown of South America's largest economy. It follows the August 7 announcement of a $30 billion loan to Brazil from the International Monetary Fund, its largest ever. But despite the size of the IMF loan, financial markets remained nervous especially over Brazil's ability to meet its debt obligations. Brazil has a debt of $250 billion, with up to $10 billion coming due by the end of this year. Yet economic and political uncertainty have hampered efforts to renegotiate and roll-over the country's medium and long-term loans. At the same time, market jitters have weakend Brazil's currency, the "real", which has lost one-fourth of its value against the dollar so far this year. This has made financing more expensive for Brazil. Brazilian economist Paulo Levy says concerns over Brazil's debt are misplaced, adding that faulty perceptions are at the root of the problem. "It seems that the market is being driven at the moment by a kind of perverse psychology in which, you know, artificial difficulties feed on themselves and create this kind of fear of lending to Brazil and leads financial institutions to reduce their exposure on Brazil," he said. "Obviously no country, or no firm for that matter, can be expected to meet all its obligations at a certain moment on its stock of debt. Brazil has been paying interest regularly, and has never delayed on its payments in recent years, so there should'nt be any reason for concern about an interruption of payments." Yet shaking these perceptions may be difficult. While pledging to maintain their credit lines to Brazil, the 16 international banks pointedly did not say they will increase them to levels reached early this year. Since March, there has been a 20 percent decline in the money international banks have made available |