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Day By Day With VOA
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Bush Underscores Strength of US Ties with Philippines
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Asia Pacific - Philippines - @USA - Global Terrorism & major US non-Nato Ally
VOA -- 19 May 2003, 18:31 UTC
Paula Wolfson
White House

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U.S. President George W. Bush says the United States and the Philippines are standing strong against global terrorism. He said more American help is on the way to the Philippines as the two meet the challenges of "a dangerous world." 

<b>George W. Bush</b>
George W. Bush
When President Bush and Philippine President Gloria Arroyo met with reporters at the White House, they spoke as old friends and strong allies.

 Mr. Bush called her a leader in the war on terrorism, and he offered American help as the Philippines deals with its own terrorist threat. "The United States plans to designate the Philippines as a major non-NATO ally. This step will allow our countries to work together on military research and development and give the Philippines greater access to American defense equipment and supplies," he said. 

Mr. Bush also said there would be another deployment of U.S. forces to support Philippine-led anti-terrorism operations. But he stressed they would act as advisors and trainers and in accordance with the Philippine constitution.
 
 

<b>Gloria Arroyo </b>
Gloria Arroyo 
"The United States is committed to helping when asked. President Arroyo and I reviewed last year's highly successful deployment of U.S. troops to the southern Philippines and we agreed to a similar deployment in the near term," Mr. Bush said. 

President Arroyo has been America's strongest ally in southeast Asia both in fighting terrorism, and in the war in Iraq. She was thanked with all the pomp of a state visit. It was only the third state visit of the Bush presidency and the first by an Asian leader.

 At the formal arrival ceremony, complete with military bands and an honor guard, she said combating terrorism is not easy, but it must be done. "Our war on terrorism has made significant gains but the threat is far from over. The war is not yet won. But it will be won, there can be no doubt. How long and at what cost are the only things in doubt," Ms. Arroyo said. 

She said there must be a comprehensive approach to the problem, and that attention must also be paid to attacking poverty. "It is not poverty which causes terrorism. Terrorism breeds on poverty and poverty breeds on terrorism. They re-enforce each other, and that is why we must fight them together," she explained. 

President Arroyo also used the occasion to invite President Bush to make a reciprocal state visit to the Philippines. It is expected to occur in October, when Mr. Bush goes to southeast Asia for the annual Asian-Pacific summit.

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Colombia seizes rebel explosives
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Americas - Colombia - @Narino - FARC explosives store
BBC -- Monday, 19 May, 2003, 02:39 GMT 03:39 UK
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By Jeremy McDermott 
BBC correspondent on Medellin 
Colombian Government forces have seized five tonnes of explosives belonging to the country's largest rebel group, the FARC or Revolutionary Armed Forces of Colombia.

The cache was uncovered in a region where the guerrillas have been destroying the infrastructure. 

A FARC rebel
The rebels have caused widespread disruption attacking power lines
But in a setback for the government, the United Nation's representative to Colombia said that anti-terrorist legislation which is making its way through Congress should not be passed as it violates basic human rights. 

The discovery of five tonnes of high explosives in a rubbish dump in the southern province of Narino marks the largest seizure ever in Colombia. 

The authorities are hoping that the capture of this FARC explosives store will bring an end to the wave of infrastructure bombings the guerrillas have conducted in the south-western part of the country. 

More than 25 electricity pylons and many communications towers have been blown up during May, leaving parts of the region without power or phone lines. 

Privacy under threat

But it is not all going the government's way. Michael Fruhling, the UN representative to Colombia, gave a press conference condemning some parts of the anti-terrorist legislation the government is trying to get through Congress. 

He said that many elements of the bill should not be passed as they invade citizens' privacy and would constitute an abuse of basic human rights.

The government insists that it needs the powers granted under proposed legislation to prosecute the war on terrorism. 

But the Colombian security forces do not have a good human rights record and some NGOs fear that sweeping new powers will lead to yet more abuses.


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SEE ALSO: 
UN help for Colombia displaced 
16 May 03  |  Americas 
War uproots more Colombians 
29 Apr 03  |  Americas 
Colombia's most powerful rebels 
07 Jan 02  |  Americas 
FARC: Rebels without a cause? 
21 May 02  |  Americas 
Country profile: Colombia 
11 Mar 03  |  Country profiles 
Timeline: Colombia 
07 May 03  |  Country profiles 

RELATED INTERNET LINKS: 
The BBC is not responsible for the content of external internet sites 
TOP AMERICAS STORIES NOW 

 

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Contents of Defend America Page
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DoD -- Logged Monday, 19-May-2003
http://www.defendamerica.mil/
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HIGH-WIRE ACT Air Force Tech. Sgt. Juan Russell (left), telephone switch technician, trains Master Sgt. Troy Deaton, Superintendent, Plans and Implementation Flight, how to properly use professional climbing equipment at an undisclosed forward-deployed location. Russell is deployed from Seymour-Johnson Air Force Base, N. C. and Deaton is deployed from Wright-Patterson Air Force Base, Ohio. U.S. Air Force photo by Master Sgt Terry L. Blevins More News Photos (4)
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Philippines to Become Major 
Non-NATO Ally, Bush Says
By Jim Garamone / American Forces Press Service
     WASHINGTON, May 19, 2003 - Following a meeting today with the Philippine president, President Bush announced the United States will designate the Philippines as a major non-NATO ally, smoothing the road to military cooperation. 
     Bush and Gloria Macapagal Arroyo met at the White House and discussed the continuing global war on terror, Philippine support for operations in Iraq and U.S. help on the economic front. 
     "There may be others who might feel timid or hostile about U.S. leadership in the war against terrorism," Arroyo said. "We believe that U.S. leadership and engagement with the U.S. makes the world a safer place for all of us to live in." More
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Weather Doesn't Stop Visitors At Joint Service Open House 
By U.S. Army Spc. Bill Putnam 
     ANDREWS AIR FORCE BASE, Md., May 19, 2003 (Army News Service) Unseasonably cold weather stopped the Army's Golden Knights from their aerial acrobatics, but it didn't stop more than 30,000 people this weekend from seeing the country's military up close and in person here May 17 and 18.
     The Joint Services Open House has been held annually since 1950 and features static and hands-on displays from all five branches of the military.
     Military hardware like the Air Force's F-15 Eagle fighter, the Marine's CH-53 Sea Stallion cargo helicopter, and the Army's AH-64 Apache attack helicopter lined the tarmac here. More

Predators Prove Their Worth Against Terrorism
By Gerry J. Gilmore / American Forces Press Service
WASHINGTON, May 19, 2003 - The Air Force officer is a transport plane pilot, but these days his aircraft flies "solo," and he doesn't leave the ground.
Capt. Sam J. Vanzanten, 32, is an earthbound controller of the Predator unmanned aerial vehicle. The eight-year military veteran noted he's been in the Predator program for the past two years. 
Vanzanten, his armaments specialist, Air Force Tech. Sgt. George H. Russell, and their Predator were at Andrews Air Force Base, Md., May 16 for the kickoff ceremony at this year's Joint Service Open House. 
The C-17 transport pilot said he'd put his UAV expertise to the test overseas in support of operations in Afghanistan and Iraq. More

May 2003 - National Appreciation Month
Thanking the Troops
Over the past year, DefendAmerica.mil has received an untold number of e-mail messages from readers expressing their support for America's Troops. Here are some of their many expressions of gratitude. 
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"May God bless the men and women of our military services along with our leaders. This land of America, a beacon of hope to the rest of the world, must be defended. Thank you for all your efforts and work putting the information into this web site."
C.L., MSgt., USAF (Retired) 
More Messages
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Iraqi Freedom
bullet U.S. Views Quotes by President Bush & other U.S. leaders
bullet Defense Views Quotes by U.S. defense leaders
bullet Maps of Iraq Maps of the nation of Iraq and the region

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President George W. Bush
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“Americans are proud of every man and woman who has faced the risks of war in the cause of freedom. Many still face dangerous duty in Iraq and Afghanistan as they provide order and stability in liberated countries. Many are fighting on other fronts in the war against terror, and some brave Americans have given their lives to protect our country and to keep the peace. Our whole nation honors their memory, and our thoughts and prayers are with the loved ones they left behind.”
Weekly radio address, May 17, 2003
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Reservists Provide Stellar 
Contribution on Constellation
Sailors man the rails aboard USS Constellation (CV 64) as it pulls into Perth, Australia for a port call on her return transit to her homeport of San Diego, Calif. Constellation is returning home following her deployment in support of Operations Enduring Freedom and Iraqi Freedom. U.S. Navy photo by Photographers Mate 2nd Class Timothy Smith.
     ABOARD USS CONSTELLATION, At Sea (NNS) -- As the United States continues its unprecedented pursuit of those who threaten our liberty and safety at home and abroad, members of the U.S. Naval Reserve serving aboard USS Constellation have made enormous contributions to the San Diego-based aircraft carrier during Operation Iraqi Freedom. More
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Speed of Iraq Battle Tested 
American Logistics Efforts
By Jim Garamone / American Forces Press Service
     WASHINGTON, May 19, 2003 The speed of the battle in Iraq strained the logistics effort, but the service men and women were up to the task, said Army logistics officials in Iraq and the United States. 
     Speaking via a teleconference call from Iraq, Brig. Gen. Jack C. Stultz Jr. said the unprecedented speed of the coalition attack into Iraq, and the enormous distance the warfighters covered strained the logistics system. But it was never in danger of breaking, and the logisticians were able to supply warfighters with the ammunition, food, water and fuel they needed to complete the mission. 
      Stultz said the joint logistics effort made a difference in the war. "(Army, Marine Corps, Navy and Air Force logisticians) were able to combine our logistics efforts, combine the use of our equipment and work as one team," he said. More
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Photo Essay - banner image
Duty in Baghdad   More Photo Essays
Photo, caption below.
Army Spcs. Jacques Andrews and Adam Volkerding, infantrymen with Company B, 2nd Battalion, 325th Airborne Infantry Regiment, ride on the back of a light medium tactical vehicle through a market area in southern Baghdad during a patrol.
U.S. Army photo by Spc. Jason B. Baker
7 More Photos
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DEMONS OF VICTORY
Specialists Help Troops Deal with Stresses of War in Iraq
By U.S. Army Sgt. Mike Sweet
A Marine with First Marine Expeditionary Force looks over a pile of human remains at a mass gravesite near Al Hillah, Iraq, May 15. The unit arrived in Kuwait last November, entered Iraq March 22, controlled Operation Iraqi Freedom and is now aiding Iraqis in rebuilding their country.  Official Marine Corps photo by Sgt. L.A. Salinas     AL HILLAH, Iraq, May 19, 2003 A very real battle is just beginning for some troops as they learn to cope with the memories of the carnage of war and the stress of keeping the peace in Iraq.
     Just as armor and gun ships were deployed to support the infantry moving to Baghdad, the military has been mobilizing forces to help the war fighters come to terms with the physical and psychological effects of war.
      To keep stress from overwhelming the troops, chaplains, along with teams of counselors, psychiatrists, medics and hospital corpsmen travel with the war fighters to ensure that the effect of battle stress are dealt with early, before it becomes a long-term problem. More
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Photo, caption below.
Marine Capt. Ron Heflin, Explosive Ordnance Disposal officer for the 1st Marine Expeditionary Force, awaits another 120 mm mortar round, which will eventually be destroyed outside Al Hillah. 
U.S. Army photo by Staff Sgt. David Bennett 
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Real Work Just Beginning 
For Marine EOD Technicians
By U.S. Army Staff Sgt. David Bennett 
Soviet-made 120 mm mortar rounds await for destruction by the First Expeditionary Force Explosive Ordnance Disposal team, outside of Al Hillah, Iraq. Photo by: Army Staff Sgt. David Bennett    AL HILLAH, Iraq, May 19, 2003 -- Outside a brick factory in Al Hillah, Iraq, Marine engineer and explosive ordnance disposal specialists piled a number of Soviet-made 120 mm mortar rounds into a heap.
    The mortar rounds weren't recovered from a secret weapons cache, but part of the battle debris that inundates every neighborhood and community in southern Iraq. The mass of munitions has become a primary focus for coalition forces since the end of hostilities, as more accidental discharges are reported -- many involving children.
     The task of deactivating the deadly devices falls to the 1st Force Service Support Group Explosive Ordnance Disposal Platoon, a 30-person element based out of Camp Pendleton, Calif.
     Thousands of tons of mines, rockets and ammunition far outstrip the number of explosive ordnance disposal, or EOD, technicians, whose number here totals 88, according to Marine Capt. Ron Heflin, the 1st Marine Expeditionary Force's explosive ordnance disposal officer. More
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On the FrontLines - banner image
Salvation Army, Marines 
Coordinate to Meet Need for Propane
Maj. Donald Penny, A Marine Corps civil affairs officer (left), Mike Olsen of the Salvation Army (center) and Capt. Peter Tabash, propane distribution action officer walk the grounds of Al-Kut?s propane storage and distribution plant. Olsen is working with the Marines to re-establish propane distribution in southern Iraq. Photo by: Army MSgt. Robert Cargie    AL-KUT, Iraq -- "People here can't live without propane," Mike Olsen said calmly as he stood on the runway at an airfield in Al Kut. Olsen, a major with the Salvation Army, is the senior disaster relief coordinator for Iraq. He was in Al Kut to assess current propane gas availability in Iraq. Iraqis use propane as a fuel source for cooking their food.
Olsen is a burly man who has had many occupations in his life to include firefighter and police officer. He looks at ease in the midst of armed Marines and battle-damaged buildings. He and other members of the Salvation Army have been in Kuwait since early January. They were originally sent to the region to establish refuge camps along the Iraq-Iran border.
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Iraqis, Americans Meet to Plan Rebuilding
    AL KUT, Iraq -- Halfway up the stairs into the Al Kut city hall, a painting of Saddam Hussein once stood, framed by two tall windows. Now, the painting is boarded up, with only the top of the dictator's head still showing.
     Under guidance of the Marine Corps's 4th Civil Affairs Group, a reserve unit based out of Washington, D.C., the site was host to a meeting of Buck Walters, head of the Office of Reconstruction and Humanitarian Assistance's Heartland Division, local leaders of the Wasit province and their counterparts in the 4th CAG May 15. 
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Soldiers Help Settle Local Dispute in Northern Iraq
    MOSUL, Iraq -- Iraq's fertile crescent, referred to as the birthplace of civilization, may today be closer to a new birth -- of a democratic society. 
    Arab and Kurd representatives met May 10 in the farming community of Makhmor, roughly central to Mosul, Erbil and Kirkuk, to settle a farmland dispute stemming from the "Arabization" policies of the Ba'ath Party regime. 
    Infantrymen of the 101st Airborne Division secured the meeting area; Apache and Black Hawk helicopters flew overhead as a show of force; and a crowd of Kurds gathered chanting, We dont want them! We dont want them, referring to the Arab farmers now living on land once theirs. One banner read, Thank you to the Coalition Forces for freeing us, now keep the usurpers off our ground. 
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More Operation Iraqi Freedom Stories
Army   Navy   Air Force   Marines   Coast Guard
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Homecoming - banner image
Hawks Return Home After Operation Iraqi Freedom
After greeting his wife Vicki and son, James, Capt. Michael "Fratt" Russ, pilot, Marine All-Weather Fighter Attack Squadron 533, receives a flag from his older son, Thomas. Photo by: Lance Cpl. Jeff M. NaganPhoto, caption below.     MARINE CORPS AIR STATION BEAUFORT, S.C. -- More than 150 Marines and sailors of Marine All Weather Fighter Attack Squadron 533 returned home, May 10, after participating in Operation Iraqi Freedom.
     The Marines of VMFA 533 came back in two waves. The first was on May 8, with the jets returning, followed by the main body on the 10th on a 747.
     "It's a great day," said Maj. Gen. John Castellaw, commanding general of 2nd Marine Air Wing. "It's great to see the Marines we've trained. They have played a key role in operations, helping organize on the battlefield." More
'Guardians of the Sky' Arrive Home 
from Operation Iraqi Freedom
After greeting his wife Vicki and son, James, Capt. Michael "Fratt" Russ, pilot, Marine All-Weather Fighter Attack Squadron 533, receives a flag from his older son, Thomas. Photo by: Lance Cpl. Jeff M. NaganPhoto, caption below.     MARINE CORPS AIR STATION BEAUFORT, S.C. -- Tears of joy rolled from the faces of families and friends, who waited with open arms for their Marines, as Marine Fighter Attack Squadron 251 returned home on May 13 from Kuwait.
     The Thunderbolts were sent to Kuwait, in support of Operation Iraqi Freedom, on February 11.
     Before the arrival of the 251 main body, 10 F/A-18 pilots arrived at the air station May 12, led by their commanding officer, Lt. Col. Thomas Clark.
     "It was really hot over there, and I'm glad to be back" said Lt. Dru "Dusty" Davidson, an FA-18 pilot. More
Task Force Tarawa Marines Return to Bataan
     ABOARD USS BATAAN, At Sea (NNS) -- Four and-a-half months ago when the order came to deploy to the Arabian Gulf on short notice, USS Bataan and the embarked Marines of Task Force Tarawa, headed east not knowing exactly what their mission was, nor when they would return.
     Now, after the successful completion of Operation Iraqi Freedom, the long anticipated wait of"when are we going home?" is over. The beginning to the end is here.
     April 30 marked the beginning of the end when the combat cargo officers of Amphibious Task Force 51 held a meeting to discuss how to get the Marines and their equipment from their various positions in Iraq back south to Kuwait Naval Base for the backload. More
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On the FrontLines - banner image
On Terrorism
U.S. Indicts Two Yemeni Nationals in Cole Attack
Wolfowitz: WMD in Wrong Hands Decade's "Greatest Security Risk"
On Iraq
Feith: U.S. Committed to Winning the Peace in Iraq
Security Still Most Serious Concern for Forces in Iraq
Military News
National Guard Chief Urges Combining State Guard HQs
Returning Soldiers Get Counseling, Reunion Training
Rumsfeld Salutes Service Members at Open House
Army Lifts 'Stop Movement' Order 
Defense Officials Honor Asian-Pacific Americans
National Guard, Reserve Update


Remembering the Fallen
Army Sgt. 1st Class Paul Smith:
Soldier, Leader, Hero 
Editor's note: This article was written shortly after the events of April 4 that led to Sgt. 1st Class Paul Smith's death. Three days later, Staff Sgt. Lincoln Hollinsaid, who was quoted in this article, was also killed in action.
      UNDISCLOSED TACTICAL LOCATION, Iraq -- He took the hard right over the easy wrong.
     He always set the example; he was a professional who lived by the creed of the noncommissioned officer.
     He accomplished the mission, exceeding the standard, and always made sure his soldiers were taken care of.
      Ask any soldier in Company B, 11th Engineer Battalion, and their thoughts on Sgt. 1st Class Paul Smith, 2nd platoon sergeant, would reflect those of Staff Sgt. Lincoln Hollinsaid, a squad leader in that platoon.
      Smith was killed April 4 east of Baghdad International Airport when his platoon came under attack from Iraqi forces numbering more than 100. More
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Pentagon Identifies Iraq,
Afghanistan Casualties
WASHINGTON, May 19, 2003 Defense officials announced today the identities of two soldiers who died in Iraq and another who died in Afghanistan.
Master Sgt. Williams L. Payne, 46, of Michigan, was killed May 16, in Haswah, Iraq, when ordnance he was examining exploded. Payne was assigned to 2nd Battalion, 70th Armor Regiment, Fort Riley, Kan. 
Spc. Rasheed Sahib, 22, of Brooklyn, N.Y., was killed May 18, in Balad, Iraq. Sahib and another soldier were cleaning their weapons when the other soldier's weapon discharged striking Sahib in the chest. Sahib was assigned to 20th Field Artillery Regiment, 4th Infantry Division, Fort Hood, Texas. 
Sgt. 1st Class John E. Taylor, 31, of Wichita Falls, Texas, died May 17 in Kabul, Afghanistan. Taylor suffered a heart attack after completing physical training. He was assigned to 1st Battalion, 3rd Special Forces Group, Fort Bragg, N.C. 
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Profile
Marine Maj. Robert Kaminski and 
Navy Chaplain Timothy Hogan
Staff Sgt. Joseph Saputo and his military working dog, Nero, pose with more than 25 pounds of cocaine worth more than $375,000. The team found the drugs while on temporary duty supporting the U.S. Bureau of Customs and Border Protection here. They are assigned to the 21st Security Forces Squadron at Peterson Air Force Base, Colo. Courtesy photo

     CAMP FOX, Kuwait -- For many Marines and sailors the desert is simply a place far away from loved ones and family, but for two of the faithful it is a place where old friends reunite and work together again.
     If the saying "birds of a feather flock together" has ever held any weight, Father Timothy Hogan and Robert Kaminski are a prime example of the stereotype.
     The two service members are currently serving in the Middle East in support of continued operations in Iraq. Hogan is the Roman Catholic chaplain for the Camp Lejeune, N.C.-based Marine unit, 2nd Force Service Support Group. Kaminski, who is also with the 2nd FSSG, is a Marine major and the Beach and Terminal Operations Company commander. More
More Profiles
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Iraq's 55 Most Wanted
The latest of the Iraqi 55 Most Wanted
In Custody - May 15

Jack of Spades - 

Muhammad Hamza al-Zubaydi
Three of Hearts - 

Fadil Mahmud Gharib
Status of Iraq's 55 Most Wanted
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On the Ground
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In Afghanistan
U.S., Italians Send 
Medics to Khost
     FORWARD OPERATING BASE SALERNO, Afghanistan The original Hippocratic Oath was written in 400 B.C. by Hippocrates and has been changed and modified over the years, but its underlying principle remains the same - caring for the sick to the best of the doctor's ability and remembering that there is art to medicine as well as science, and that warmth, sympathy, and understanding may outweigh the surgeons knife or the chemists drug. 
     This warmth, sympathy and understanding is what brought together the doctors from the 946th Forward Surgical Team, deployed from Mobile, Ala., and Italian medics from Forward Operating Base Salerno to visit an orphanage in the town of Khost. More
Romanians Beat 1,300 In Kandahar Run 
More Than Just Ordnance Blasters
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In Kuwait
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Conan O'Brien Wrestles Marine in Kuwait
(left to right) Sgts. Shawn Goodman, 28, from Essex, Mo.; Joe Clark, 21, from Grove City, Ohio; and Dustin Bussell, 23, from Monroe, Mich., pose with Conan O'Brien. All three Marines are amtrackers with 2nd Amphibious Assault Bn, Camp Lejeune, N.C. Photo by: Cpl Jeff Hawk
     CAMP MATILDA, Kuwait Conan O'Brien's unruly red mop may not meet military regulations, but the comedian's unruly behavior met with howls and cheers from Marines he visited here May 16. 
      Two minutes after entering a cammie-netted arena, the feisty "Late Night" host stripped off his shirt and engaged in a push-up competition with a Marine he plucked from the audience of roughly 2,500. The towering carrot-top kept up with the Marine push-up for push-up but found himself on the losing end of a wrestling match after he unexpectedly lunged for his worthy rival. More
Band Member Takes Care Of Wounded Marines
Services Conduct Earth Day Clean Up
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In Djibouti
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Soldiers in Africa Hone 
Counterterrorism Skills
A suspect, known as a high-value target, is apprehended by soldiers assigned to Company C, 4th Battalion, 31st Infantry Regiment, 10th Mountain Division during a counterterrorism exercise at Camp Lemonier, Djibouti, May 14. The soldiers, here in support of Combined Joint Task Force  Horn of Africa, have been deployed three times during Operation Enduring Freedom. U.S. Marine Corps photo by Cpl. Andrew W. Miller
     CAMP LEMONIER, Djibouti Soldiers from Company C, 4th Battalion, 31st Infantry Regiment, 10th Mountain Division, here in support of Combined Joint Task Force - Horn of Africa, conducted a night raid exercise in a local training area just outside the camp May 14.
     The purpose of the training was to hone counterterrorism skills necessary in the war against terrorism.
     This was a full force company rehearsal including all four of our platoons, said Capt. Scott F. Austin, commander of Charlie Co. More
Local Residents Honor U.S. Troops
Troops in Africa Treat Local Civilians
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In Qatar
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Marines Compete for Martial Arts Tan Belt
Australian Troops in Qatar Celebrate Holiday 
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In Uzbekistan
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New Troop Provides ‘Flat-Out’ Support
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'On The Ground' Archive
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Economic Analysts Dismiss Threat of US 'Deflation'
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Americas - USA - @Washington - Deflation
VOA -- 19 May 2003, 21:28 UTC
Barry Wood
Washington

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The Shadow Open Market Committee, a group of mostly academic economists who monitor the policies of the U.S. central bank, Monday dismissed the threat of deflation, a damaging economy-wide drop in prices. The group is similarly unfazed by the fall in the dollar. 

At its semi-annual meeting in Washington, the Shadow Open Market Committee said deflation fears are unfounded and misguided. It says with an expansionary monetary policy and a weakening currency, rather than deflation, the United States faces the prospect of moderately higher inflation. Gregory Hess of Claremont McKenna College says deflation may be a problem in Europe, but not in the United States. 

"In essence deflation is a symptom and not a cause. Deflation is brought about by things like banking crises and, I won't call them collapses, but a certain implosion of the banking system, which we've seen historically earlier in the United States," he said. "But in no way do we see it now. It may actually be possible in some European countries." 

Mr. Hess and his colleagues agree that Japan is caught in a deflationary spiral, but that it is very unlikely to occur in the United States. 

Mickey Levy of the Bank of America says the Shadow Committee believes the U.S. economy is poised for resumed growth. 

"If you look at the underlying fundamentals in the economy, along with continued monetary stimulus and the tail winds of previous tax cuts, there is every reason to believe that the economy is going to continue to register more improvement with the rate of growth improving moderately," he said. 

The committee is unconcerned about the sharp declines in the exchange rate of the dollar. It says the dollar's value should be determined by the market. They say that neither the current Bush administration nor the Clinton administration before it intervened in the foreign exchange markets to alter the dollar's value. The Shadow committee says the dollar's weakness creates more problems for the weak European economy than it does for the United States.
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Key Indicator Finds US Economy Stagnant in April
South Korea Takes Steps to Stimulate Economy
Japanese Economic Growth Stalls
EU Reports Zero Economic Growth Rate
Latin American Countries in Need of Economic Reforms


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EU Declares Rapid Reaction Force Ready for Peacekeeping Missions
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Europe - EU - @Brussels - Rapid Reaction Force
VOA -- 19 May 2003, 20:33 UTC
Roger Wilkison
Brussels

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