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Annan: Iraq Talks Hinge On Inspections


VOA News
23 Jul 2002 23:49 UTC
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U.N. Secretary-General Kofi Annan says he will hold no more talks with Iraq until it indicates U.N. arms inspectors can resume checking for weapons of mass destruction. 

Mr. Annan made the comments late Tuesday in an interview with the CNN program "Moneyline." 

Mr. Annan held three recent rounds of talks with Iraqi Foreign Minister Naji Sabri over the inspection issue, including a session earlier this month in Vienna. 

The U.N. Security Council says inspectors must verify that Iraq has no chemical, biological, or nuclear weapons, or the means to produce them, before U.N. sanctions against Iraq can be lifted. 

In Tuesday's interview, Mr. Annan said he has deliberately refrained from setting a date for more talks until Iraq gives him reason to meet again. He says if Iraqi officials do not give him the indications he is looking for, he and Foreign Minister Sabri are not going to meet. 

The U.N. sanctions were imposed after Iraq's invasion of Kuwait in 1990. Iraq has kept the arms inspectors out the country for the past three-and-a-half years. 

The United States has been skeptical of the talks between Mr. Annan and Mr. Sabri. President Bush has made it clear he believes Iraq is trying to acquire weapons of mass destruction. Mr. Bush has also made it clear he wants Iraqi leader Saddam Hussein removed from power. 

Some information for this report provided by Reuters. 

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Bush Condemns Israeli Attack As 'Heavy-Handed Action'


Paula Wolfson
White House
23 Jul 2002 16:21 UTC
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AP
George W. Bush
President Bush has condemned the Israeli air strike in Gaza that resulted in the deaths of a leader of the Islamic militant group Hamas and 14 other Palestinians, including nine children. The president said he is concerned that the Israelis hit a building knowing innocent people would likely be killed. 

White House Spokesman Ari Fleischer said President Bush has long said the Israelis have a right to defend themselves. But he makes clear this time the president believes Israel went too far. 


<b>Ari Fleischer</b>
Ari Fleischer
"The president has said repeatedly that Israel has to be mindful of the consequences of its actions in order to preserve the path to peace in the Middle East. The president views this as a heavy-handed action that is not consistent with dedication to peace in the Middle East," Mr. Fleischer said. 

Mr. Fleischer said the president is a friend of Israel but feels it is important to speak out now because of the circumstances surrounding the Israeli action. "In this instance in Gaza, this was a deliberate attack against a building in which civilians were known to be located," he said. 

His brief comments to reporters were unusually strong, focusing on the civilian casualties. Mr. Fleischer said the president's views were passed to Israeli officials by U.S. embassy personnel. 

"This message has been conveyed to the prime minister's office through the embassy. Included in the conveyance of the message and the president's thoughts about this is the regret of the innocent lives including the children's lives that have been lost," Mr. Fleischer said. 

The target of the attack was a Hamas leader at the top of Israel's most wanted list. Israeli Prime Minister Ariel Sharon called the operation a success, though he said he regrets the civilian casualties. Other Israeli officials said they had no intention of hitting innocent people. 

The White House spokesman rejected that claim, noting they attacked apartment buildings in a densely populated area. "This president has been and will continue to be a lead defender of Israel around the world and will speak out about Israel's right to self-defense. This is an instance in which the United States and Israel do not see eye-to-eye," Mr. Fleischer said. 

The White House spokesman was then asked if any comparisons can be drawn between the Israeli air attack and American efforts to track down terrorists still in Afghanistan. He said U.S. policy is to avoid civilian casualties, though there have been accidental losses. 

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Human Rights Groups Say Russian Troops Kill Dozens of Chechens Each Month


VOA News
24 Jul 2002 00:14 UTC
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The head of the International Helsinki Federation for Human Rights says Russian military forces are continuing to abuse and kill large numbers of civilians in Chechnya. 

Executive Director Aaron Rhodes says that between 50 and 80 Chechen civilians are killed every month in security sweeps by Russian troops. He says the scale of killing in the breakaway republic borders on genocide. 

Mr. Rhodes spoke Tuesday after returning from a three-day visit to Chechnya and neighboring Ingushetia, where he headed a mission that visited camps for displaced residents of Chechnya. 

The Helsinki Federation also called on Russia to refrain from actions that would force the displaced people to return. The group says Russian authorities are planning to shut down services at camps housing 50,000 displaced people, which would in effect force them to return to Chechnya where security is not adequate. 

The Prime Minister of Chechnya's Kremlin-backed government, Stanislav Ilyasov disputes Mr. Rhodes' charges. He says that it is true that people are dying, but mostly at the hands of criminals, and not on a large scale. 

Russian troops retreated from Chechnya in 1996 after a peace agreement with local authorities ended a two-year conflict. But they swept back in October, 1999, to put down a separatist insurgency in what Moscow has described as an anti-terrorist operation. 

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Iranian President: US on 'Frightening Path' Towards War


Alisha Ryu
Hong Kong
23 Jul 2002 14:20 UTC
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Iranian President Mohammad Khatami said he fears the United States is steering the world toward war in its fight against terrorism. His remark follows U.S. media reports that the Bush administration is scrapping a five-year effort to engage the moderate Muslim cleric. 


<b> Mohammed Khatami </b>
Mohammed Khatami 
On the second day of his four-day visit to Malaysia, President Khatami told reporters that Iran considers the United States to be on a "frightening path" toward war. 

He said while he agrees that terrorism is a horrendous and dangerous phenomenon, he thinks U.S. actions in the aftermath of last September's terrorist attacks have created an environment of war and fear throughout the world. 

Mr. Khatami said Iran is particularly concerned about reports that the United States may launch an attack on neighboring Iraq to oust President Saddam Hussein. 

He warned that such an attack would only destabilize the region and anger the world's one billion Muslims further. He said Iran which fought a bitter eight-year war with Iraq in the 1980s - condemns any foreign interference in Iraq. 

The Iranian leader's remarks come on the heels of a report Tuesday by the U.S.-based newspaper, The Washington Post

The paper said that Mr. Bush is ready to abandon efforts to work with President Khatami and his reformist allies in the Iranian government. Mr. Bush wants to instead focus on appealing directly to democracy supporters in Iran. 

According to the Post newspaper, the shift follows an intense debate within the administration over whether to adopt a harder line against Iran. Mr. Bush accuses Iran of developing weapons of mass destruction and has labeled it part of an "axis of evil," along with Iraq and North Korea. 

Mr. Khatami in office since 1997 was reelected last year by a wide margin. But hard-line clerics have consistently blocked his efforts to reform the government. The Washington Post quotes a senior Bush administration official saying the United States has lost faith in Mr. Khatami and his allies to deliver on their promises. 

Washington cut ties with Tehran after radical Iranian students seized the U.S. Embassy in 1979 and held dozens of people hostage for 444 days. The United States has tried to engage Iran in official talks since Mr. Khatami came into office, but Iran has rejected the offers. 

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Israeli Air Strike in Gaza Kills Top Hamas Commander


VOA News
23 Jul 2002 22:09 UTC
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Funeral marchers in Gaza City have demanded revenge for an Israeli airstrike that killed a leading Palestinian militant and 14 others, including nine children. 

The late-night attack Monday killed Salah Shehade, head of the military wing of Hamas. But air-launched missiles also destroyed several buildings in a crowded Gaza City neighborhood. Mr. Shehade's wife and three children were among those killed, and more than 150 Palestinians were wounded. 

Tens of thousands of Palestinians turned out for Tuesday's funeral procession. Hundreds fired gunshots into the air as the crowd chanted anti-Israeli slogans. 

Israel is being widely condemned for the attack. Prime Minister Ariel Sharon called it one of the Jewish state's "biggest successes," though he expressed regret for the loss of innocent lives. 

Mr. Shehade was at the top of Israel's most wanted list. Israeli officials say he was behind hundreds of attacks against Israeli soldiers and civilians in the past two years. 

President Bush's spokesman criticized the attack as heavy-handed action that does not contribute to peace. 

Officials from Europe, the Arab world and the United Nations also condemned the Israeli action. Egypt's Foreign Minister Ahmed Maher accused Israel of carrying out a war crime. The European Union called the Israeli attack disproportionate and said it could not be justified in any circumstance. 

Elsewhere, five armed Palestinians were killed in clashes with Israeli troops Tuesday. The Israeli army says it killed three Palestinians wearing military garb in a gunbattle near the West Bank city of Nablus. Israeli forces were searching the area for suspects involved in last week's ambush of a bus carrying Jewish settlers. Two members of Islamic Jihad were killed during another exchange of gunfire on the edge of the Gaza Strip. 

Some information for this report provided by AFP and Reuters. 

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Karzai Attends Graduation Ceremony of New Afghan Soldiers


Michael Drudge
Kabul
23 Jul 2002 13:49 UTC
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<b>Afghanistan army trainees</b><br>VOA photo - M. Drudge
Afghanistan army trainees
VOA photo - M. Drudge 
The first battalion of U.S.-trained Afghan soldiers graduated from basic training Tuesday, ready to take up their duties in the new Afghan national army. The freshly minted troops are being assigned to the presidential palace, where concerns about the security of the Afghan president have been running high. 

Afghan President Hamid Karzai led a high-level delegation at the graduation ceremony at a former military academy on the eastern edge of Kabul. 

About 300 men completed the 10-week course, taught by members of the U.S. Army's special forces. Two other battalions are being trained, one of them by French instructors. 

Afghan military leaders said they would like to form an army of 200,000 men, if they can get enough financing for the effort. 


AP Photo
AP
Hamid Karzai reviews new Afghan troops
After a review of the troops, President Karzai called the emerging national army the backbone of Afghanistan. He told the soldiers they will protect the territory, independence and national security of Afghanistan and all of its people. 

The defense minister, Mohammed Fahim, said the army is being built from nothing, and that many officers are being recalled who had left the service during Taleban rule. 

Mr. Fahim said he wants an army that is trusted and respected by all Afghans. And he pledged that the army will not interfere in the political affairs of the country. His words are closely followed, as political observers have said Mr. Fahim could be a rival to President Karzai. 

Commanders at the military training center said the new troops are being deployed at the presidential palace in Kabul. That announcement comes one day after U.S. and Afghan officials confirmed that U.S. Army soldiers, including special forces troops, are providing security for Mr. Karzai. 

Security concerns for the president have heightened since the July 6 assassination of Vice President Abdul Qadir. 

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Many US Investors Decide to Stay in Market Despite Price Drop


Jenny Badner
New York
23 Jul 2002 20:07 UTC
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As the U.S. stock market continues its downward tumble, individual investors faced some difficult questions. Should they sell now or risk devastating financial loss while waiting for the market to recover? 

Many of 85 million American investors say they are waiting out the storm. 

Kathy Renaud, 61, decided to travel to New York City, as planned, during her summer vacation. The school teacher from the Midwestern state of Ohio says she is spending her money in the city, on taxi cabs, at stores and in restaurants, to help the city, still suffering financially from the September 11 attacks. 

Back home, Mrs. Renaud is cautious with her money. She and her husband are starting to put more dollars in savings accounts rather than in stocks. Mrs. Renaud is worried about her retirement plan, which is plunging with the stock market. 

"It is going to change my retirement style," she said. "I have to retire in five years and at that rate I might not have very much. But I did not have that much in [the market] to begin with. I am just reluctant. I do not want to be one of the ones that causes a crash." 

For now, Mrs. Renaud is waiting for the stock market to recover and has decided not to sell. Economist William Dudley of the New York investment firm Goldman Sachs says most individual investors are acting the same way, despite the wild market. 

"Most people seem to have a view that they are in the stock market for the long haul. And I think if you are investing in the stock market, I think that is the healthy attitude to have, and [do] not change your game plan based on some weakness in the stock market, which could very well turn out to be temporary," he said. 

Not everyone is waiting patiently though. A series of corporate scandals, including the most recent declaration of bankruptcy by telecommunications giant WorldCom, has caused a two-week selling frenzy on Wall Street. Investors are unloading more shares and the Dow Jones Industrial Average has fallen to its lowest level in four years. 

Lou Colasanti, who currently works for the City of New York, says he lost confidence in the stock market long before the latest crisis. "I have gotten rid of most of my stock, pulled it all out a few months back. I have worked for the brokerage companies. I saw this coming again so after 9-11, I figured, that is it," he said. 

A clerk named George who works on the floor of the New York Stock Exchange was not so lucky. George is relaxing in front of the landmark building, eating a cup of vanilla ice cream during a five minute break. He says he is no longer worried about the plummeting market since he has nothing left to lose. The 28-year-old lost $100,000 in technology stocks. He has one piece of advice for investors. "Play the market. Do not play greedy. Get out when you can," he said. 

Expert William Dudley of Goldman Sachs say investors, such as George, failed to follow the first, most important rule of the stock market. "Portfolio diversification is one of the things that is always very important in investing," he said. "You do not want to have all your eggs in one basket," he said. 

Secondly, Mr. Dudley says, look at your retirement portfolio as a long-term investment that could go up and down with the market. Some investors point out that rule only applies to people who are far from retirement age. 

One investor on a trip to his hometown New York from South Carolina says that he is not watching his losses or his retirement fund, much of which has been invested in the stock of his employer, American Airlines. 

"I do not follow it very closely, to be honest with you," he said. "I just figure it is going to come back eventually and I just leave it the way it is instead of running around scared." 

Many investors say that while they wait for the stock market to rally, they are grateful to have their jobs at a time when a lot of people are nervous about the U.S. economy. 

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NYSE Chairman: Bad Corporate Practices To Be Amended


Barbara Schoetzau
New York
23 Jul 2002 18:03 UTC
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AP Photo
AP
The tote board at the New York Stock Exchange reflects the drop in the Dow Jones
U.S. stock markets have been seesawing during the day, despite showing early signs of a slight rebound. Investor confidence shows little sign of returning. Concern about fraudulent accounting practices continues to roil U.S. markets. Day after day, Wall Street investors ask how low can the market tumble before it starts to recover? 

Shares of the two largest U.S. banking companies, Citigroup and J.P. Morgan, dropped after a report in The Wall Street Journal newspaper that the firms may have devised for other companies the same type of deceptive transactions that caused difficulties for the now-bankrupt Enron Corporation. Investor concern about bank loans to WorldCom, which declared the largest bankruptcy in U.S. history Sunday following an accounting scandal, also contributed to losses in the banking sector. 

Congress, federal government regulatory agencies and the equities industry are undertaking initiatives to restore public confidence in the markets. The government is insisting that 1,000 corporate chief executive officers certify the accuracy of their companies' financial statements by August 14. The chairman of the New York Stock Exchange, Richard Grasso, said these measures should end what is being called the crisis in investor confidence. 


AP Photo
AP
Richard Grasso
"I believe there is a powerful platform of reform that has been proposed. The pubic will then return to looking at the marketplace from the standpoint of fundamentals. How is the economy doing? Answer is: strong. Where are interest rates? Answer: 30-year low. Is there inflation? Answer: non-existent. So I think we are going to put the bad people out of the system. Bad practices are going to be amended. We are going to get back to business," Mr. Grasso said. 

Mr. Grasso said further investigation may expose more wrongdoing. He said the challenge for the business community is to remove the perpetrators from the system. 

"I cannot tell you the amount of anger that exists in the corporate community over the misdeeds of those who have misled the public and their investors. We are going to root them out and punish them. I cannot say that there will not be others to come. I can tell you, please remember, there are 15,000 publicy traded companies in America, the best capital markets in the world. Are there some bad apples? Clearly,yes," Mr. Grasso said. 

Most importantly, Mr. Grasso said, investors should remember the vast number of U.S. companies play by the rules. 

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Pope Arrives in Canada


Barry Brown
Toronto
23 Jul 2002 21:56 UTC
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<b>Pope John Paul II</b>
Pope John Paul II
Pope John Paul II Tuesday arrived in Toronto at the start of a three-nation tour of the Americas by holding up Canada as a model of tolerance and justice for the world. 

The frail, 82-year-old leader of the world's 1 billion Roman Catholics arrived in Canada for World Youth Day - a six-day celebration of faith for young people. Speaking to a gathering of dignitaries and invited guests in an airport hangar, the Pope praised Canada as a champion of human rights and human dignity. 

"In a world of great social and political extremes, and confusion about the very purpose of life, Canadians have an incomparable treasure to contribute on condition that they preserve what is deep and good and worthy in their own heritage," he said. 

This is the pope's third trip to Canada, and his arrival comes at a time when the Catholic Church, particularly the American church, is embroiled in scandals. Organizers say those scandals are one reason this World Youth Day event will likely be the smallest ever - with just 200,000 people attending. 

Despite this, the theme of this event that Catholic young people represent the "salt of the earth and light of the world" has attracted participants from 100 countries. 

The pope's 11-day trip, which includes stops in Guatemala and Mexico, is likely to be his last overseas mission. The effects of Parkinson's disease have left the pontiff physically weak and struggling when he walks and speaks. Still, as he walked, almost unaided, down the steps from the airplane that carried him to Canada, Pope John Paul II showed his incomparable willpower has not been diminished. 

The pope's Toronto trip culminates on Sunday with a mass at an old military airport. But before he attends any events, he will be flown to a Catholic retreat on Strawberry Island, about 100 kilometers north of Toronto. 

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UN Report: Democracy Sometimes a Disappointment


Lisa Schlein
Geneva
23 Jul 2002 23:54 UTC
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A United Nations report says some democratic countries are sliding back toward authoritarianism because of rising economic and social problems. The report by the U.N. Development Program also includes the agency's annual ranking of countries based on their levels of human development. 

The report says that, in theory, the world is more democratic than it has ever been. One hundred forty of the world's nearly 200 countries now hold multi-party elections. 

But, in practice, the report says only 82 countries are fully democratic in guaranteeing human rights, a free press and an independent judiciary. It says some countries that embraced at least some democracy at the end of the last century have returned to authoritarian rule, including Burma, Pakistan, and Zimbabwe. 

The chief author of the report, Sakiko Fukuda-Parr, noted that there is a growing sense in many countries that democracy has not delivered on its promises. 

"I think there was an expectation that people fought for and won democracy in the hopes that this was really going to improve their lives," she says. "But, in fact, the record of the last decade is that alongside democratization, you have also had a lot of reversals on the social and economic front." 

The report says 52 countries, mainly in sub-Saharan Africa and the nations of the former Soviet Union, ended the past decade poorer than they began. Ms. Fukuda-Parr says many people disillusioned by what they consider the failure of democracy are urging a return to authoritarian rule. But she points out this is both dangerous and misguided. 

"The prolonged economic and social decline under authoritarianism definitely beats any decline or economic catastrophe under democracy," said Ms. Fukuda-Parr. "Democracy basically does protect people against the extreme excesses of arbitrary rule of authoritarian regimes." 

The report's annual Human Development Index shows East Asian economies have made major advances, but countries in Africa and the former Soviet Union have slipped. 

Norway tops this year's rankings as the best of 173 countries around the world in terms of life expectancy, education, and income per person. The United States comes in sixth. Sierra Leone had the lowest score. 

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US Charges Philippine Rebel Leaders With Murder of Americans


Nick Simeone
Washington
23 Jul 2002 21:47 UTC
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The U.S. Justice Department has announced charges against five alleged leaders of the Abu Sayyaf rebel group in the Philippines, in connection with the death last month of a kidnapped American missionary. 

The alleged commanders of Abu Sayyaf are charged with conspiracy and hostage-taking for crimes that have led to the deaths of Americans. The latest was Martin Burnham. He was killed last month, along with a Philippine nurse, during a rescue attempt by the Philippine military. His wife suffered an injury but was freed. 

The missionary was among a group of Americans kidnapped more than a year ago by Abu Sayyaf rebels who have been fighting for a separate Islamic state. A year ago, the group claimed responsibility for beheading another kidnapped American. 


AP Photo
AP
Larry Thompson
Deputy U.S. Attorney General Larry Thompson announced the indictments in Washington. "With today's indictment, the United States sends a signal: We will work to track down and prosecute all those who commit barbaric acts of terrorism against Americans, here at home and abroad," he said. "The Justice Department is committed to working with the government of the Philippines to bring the leaders of the Abu Sayyaf group to justice." 

None of the alleged Abu Sayyaf leaders charged is in custody, but this indictment allows the United States to seek their extradition if they are captured. About a thousand American soldiers are in the Southern Philippines helping the Philippine military in counter-terrorism and to wipe out a rebel group that the United States considers a foreign terrorist organization with ties to Osama bin-Laden's al-Qaida network. 

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US Commander Says Controversial Raid Tied to Omar Search


VOA News
24 Jul 2002 00:52 UTC
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The commander of U.S. forces in Afghanistan says a U.S. airstrike that killed civilians in central Afghanistan earlier this month was connected to the hunt for fugitive Taleban leader Mullah Mohamed Omar. 

Lieutenant General Dan McNeill was quoted by the Washington Post on Tuesday as saying the operation in Uruzgan province was carried out, in part, to find out more about Mullah Omar's whereabouts. 

The operation involved several hundred U.S. and coalition troops, as well as Afghan forces. U.S. officials have acknowledged that civilians died in the airstrike that took place during the mission, but this is the first time they've publicly said the raid was connected to the hunt for Mullah Omar. 

Uruzgan is Mullah Omar's home province and Lieutenant General McNeill told the Post the fugitive Taleban leader may still be in the area. 

The controversial July first airstrike is under investigation, but U.S. military officials say it was prompted by anti-aircraft fire aimed at American planes. Afghan officials said almost 50 civilians were killed in the incident. 

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US Indicts Abu Sayyaf Leaders


VOA News
24 Jul 2002 00:25 UTC
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The U.S. Justice Department has indicted five leaders of the Abu Sayyaf Muslim rebel group in the Philippines for kidnapping and murdering American citizens. 

Deputy Attorney General Larry Thompson announced the indictments in Washington on Tuesday. None of those indicted is in custody. 

Mr. Thompson said the charges relate to the kidnapping of a U.S. businessman and two American missionaries in May of 2001. The three were among a group of 20 taken by the Abu Sayyaf from a diving resort in the southern Philippines. 

The businessman, Guillermo Sobero, was beheaded in June of 2001, and missionary Martin Burnham was killed during a May gunbattle between rebels and Philippine troops. His wife, Gracia Burnham, was rescued. 

Mr. Thompson said the indictments will send a signal to would-be terrorists at home and abroad who seek to harm Americans and others. He said the U.S. Justice Department is committed to helping the Philippine government bring Abu Sayyaf rebels to justice. 

Earlier this year, President Bush sent more than one thousand U.S. troops to help train Philippine soldiers in fighting the extremist group. In May, the United States offered a reward of up to five million dollars for information leading to the arrest or capture of the same five Abu Sayyaf leaders named in the indictment. 

The new indictment is a follow-up to one that was issued secretly in February. At that time, Martin and Gracia Burnham were still being held in Abu Sayyaf custody. 

One of the indicted leaders, Abu Sabaya, was reported killed in a sea battle with Philippine government troops last month. His body has not been found. 

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US Reviews Israel's Proposed Sale of Missiles to India


David Gollust
State Department
23 Jul 2002 22:01 UTC
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The Bush administration says it is considering an Israeli request to sell India its Arrow anti-ballistic missile, a system developed in partnership with the United States. The issue is expected to figure in Secretary of State Colin Powell's visit to India this coming weekend. 

The State Department says no final decision has been made on whether to allow the deal to go forward. But officials here are none-the-less emphasizing the potential destabilizing effects of such a sale for South Asia, and the possibility it might violate the 1987 international accord that seeks to limit the spread of missile technology. 

Israel is seeking approval from the Bush administration to proceed with the sale to India of its Arrow-Two missile, which is designed to intercept short-to-medium range ballistic missiles like the Scuds fired against Israel by Iraq in the Gulf War. 

Israel would need Bush administration approval for the India sale since the Arrow project has been largely financed by the United States and the system incorporates U.S. technology. At a briefing here, State Department spokesman Richard Boucher said the matter is under discussion with the Israelis and that an inter-agency debate on the merits of the sale is also underway in Washington. 

"We have discussed with them some of the issues that arise in our consideration of the request," he said. "I think we're all concerned about stability in South Asia. We're all concerned and emphasize the importance of the Missile Technology Control Regime. So these are issues that we've been discussing with the Israeli government. At this point we have not given a definitive answer to the Israeli request, but we continue to discuss the issue in Washington." 

A Washington Post newspaper report Tuesday said senior State Department officials are "united" in opposition to the sale to India because of, among other things, concern it might prompt Pakistan to respond by seeking its own missile defense system, or by increasing its offensive missile capability to counter Indian defenses. 

The deal is reported, however, to have the backing of senior Defense Department officials and supporters at the Pentagon and elsewhere of the administration's own ambitious missile-defense program. 

A final U.S. determination on the Israeli request is expected, as one official put it, "fairly soon" though it is unlikely to be made before Secretary of State Powell's talks in India and Pakistan Saturday and Sunday. 

The debate over the sale to India is similar to an episode two years ago, when Israel bowed to U.S. pressure and called off a sale to China of its Phalcon airborne early-warning radar system. 

The Clinton administration argued at the time that the $250 million deal might shift the military balance in the Taiwan straits. 

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White House Flatly Denies Change in Policy Toward Iran


Scott Stearns
White House
23 Jul 2002 18:20 UTC
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The White House Tuesday denied a published report that it is abandoning efforts to work with reformists in Iran. White House spokesman Ari Fleischer says there has been no change of policy on Iran. 

He is denying a story in The Washington Post that says the Bush Administration has concluded that Iranian President Mohammad Khatamai and his reformist allies are too weak. Quoting unnamed U.S. officials, the newspaper says President Bush believes those leaders are "ineffective and not serious about delivering on their promises" of establishing a society less dominated by religious hard-liners. 

Because of that assessment, the newspaper reports the Administration has decided to abandon a five-year-old effort to encourage the reform agenda and will instead appeal directly to democracy supporters among the Iraninan people. "That's not the case," Mr. Fleischer told reporters. He says the United States "will continue to engage Iranian officials when useful," in multilateral settings on issues of political concern. 

For example, Mr. Fleischer says U.S. officials dealt with their Iranian counterparts last year at an international conference on the political future of Afghanistan. President Bush says Iran is part of an "axis of evil" along with North Korea and Iraq, that could help terrorists acquire weapons of mass destruction. 

In a statement earlier this month, Mr. Bush said a "vast majority" of Iranians have voted for political and economic reform, but, he said, their voices are not being listened to by what he called "the unelected people who are the real rulers of Iran." 

Mr. Fleischer says the president remains concerned about what he calls "destructive Iranian behavior" and again called on the country's leaders to end their support for Hezbollah and other groups opposed to Israel. 

Speaking in Malaysia Tuesday, President Khatami accused the United States of steering the world along a "frightening" path toward war in its fight against terrorism. He said any U.S. military action against neighboring Iraq would threaten regional stability. 

He added that Tehran would have "no problem" with Washington if it abandoned what he called its "humiliating policies" toward Iran. 

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Corporate Fraud Bill Goes to Bush Following Overwhelming Congressional Approval


VOA News
25 Jul 2002 21:34 UTC
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The U.S. Senate and House have overwhelmingly passed legislation to crack down on corporate fraud that President Bush says he is eager to sign into law. 

The Senate approved the measure by a vote of 99 to zero just hours after the House of Representatives passed it 423 to three. 

Legislative leaders and the White House have called for strong action against corporate fraud in light of a recent rash of accounting scandals and embezzlement cases. 

The compromise bill passed Thursday was hammered out by House and Senate leaders Wednesday. 

The bill increases penalties for corporate executives convicted of fraud and gives defrauded investors more time to file lawsuits. 

Some information for this report provided by AP. 

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Greek Terror Suspect Possibly Involved in 1975 Killing of CIA Athens Station Chief


Roger Wilkison
Brussels
25 Jul 2002 
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AP Photo
AP
Pavlos Serifis, escorted outside courthouse, 25 July 2002
Greek police say a suspected member of the November 17 terrorist organization they arrested this week took part in the 1975 killing of the CIA's Athens station chief, the first assassination carried out by the group. Police say 46-year-old Pavlos Serifis is a long-standing member of November 17 and was involved in planning several of its attacks. 

Mr. Serifis, the 12th suspected November 17 member to be arrested since Greece began its crackdown on the shadowy terrorist group, was picked up by police on Wednesday. 

Greek authorities say he played a role in the assassination of Richard Welch, the CIA's top official in Greece, 27 years ago. Mr. Serifis is the only suspect so far to be linked to that murder, the first of 23 carried out by November 17 over a 25-year period. 

Mr. Welch was gunned down in an Athens suburb in December, 1975 by a three-man hit squad that surrounded his car. 

November 17, which was named for the day in 1973 when Greece's then-ruling military junta quashed a student rebellion, has killed American, British and Turkish diplomats as well as Greek politicians, businessmen and prosecutors. It has also carried out bombings, rocket attacks and bank robberies. 

Other suspects in custody have confessed to taking part in attacks that occurred from the mid-1980's up until the year 2000, when November 17 killed its last victim, British defense attache Brigadier Stephen Saunders. 

Until now, police had little information about the radical Marxist group's early years. They say they hope Mr. Serifis can shed light on the origins of one of Europe's most elusive terrorist organizations. 

Mr. Serifis, a telephone operator at a children's hospital, has denied belonging to November 17. So has Aleksandros Giotopoulos, a university professor now in custody whom police have identified as the group's mastermind. 

November 17 operated with impunity for more than a quarter of a century until a botched bomb attack last month at the port of Piraeus unleashed a wave of arrests. Police said Thursday they have detained a 13th suspected member of the group, a man they identified as Patroclus Tselendis. 

Greece has been under pressure to stamp out terrorism before it hosts the 2004 Olympic Games in Athens. Greek authorities say they believe they have virtually smashed November 17 and seized most of its weapons. 

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Greeks Nab Another November 17 Suspect


VOA News
25 Jul 2002 21:51 UTC
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