NEWS

September 2012

 
 

 

 

 

 
 
 

International News      

                         

                

Ground-breaking talks with FARC rebels in October

Members of Latin America’s largest guerrilla group declared that they would ask for an immediate ceasefire when they meet Colombian government negotiators for peace talks in October. The left-wing rebels said they were prepared to disarm and would seek a truce when the peace talks opened in Oslo, Norway. The Colombian President Juan Manuel Santos, however, rejected calls by the rebels for a ceasefire once peace talks begin. “We will not give anything until we get the final agreement,” Santos said. He stressed that his government would not “lower its guard in terms of security”, and reiterated that he did not want to “repeat the mistakes of the past” - an apparent reference to the failed peace talks in 2002, which reportedly gave time to the organisation to regroup. Government military operations against the rebels are continuing. The discussions, which will begin on October 8, will have Chile, Cuba, Venezuela and Norway aiding the negotiations.

 

Hollande promises economic recovery in two years

“I have to set the course and the pace” to combat “high joblessness, falling competitiveness and serious deficits”, insisted French President Francois Hollande during a televised interview. He outlined a series of budget measures, including cuts, aimed at achieving economic recovery within two years. Accused by critics of procrastination since his election in May, the Socialist president maintained, “My mission is a recovery plan and the time frame is two years”. Polls have shown that the public is losing confidence in the government. During the interview, Hollande outlined a series of measures, including spending cuts and extra taxes totalling €30 billion (?24 billion). He also said that a planned 75 percent upper tax rate to be imposed on annual income above €1 million (?800,000; $1.28 million) could be dropped after two years.

 

Hong Kong chooses new legislature amid anti-China sentiment

Hong Kong voters have chosen a new legislature, with pro-democracy candidates expected to benefit from weeks of anti-China protests. The poll came after the government scrapped plans for mandatory Chinese patriotism lessons in schools. For the first time, 40 of the 70 seats on the governing legislative council were directly elected. The results of the poll could keep on track plans for universal suffrage, which could come as early as 2017. But for the promised reform to be implemented; it needs the support of the legislative council. According to reports, voter turnout among the 3.5 million electorate was more than 50 percent, higher than during the previous legislative election in 2008. Under the current laws, 30 of the 70 seats in the assembly are being chosen by small group of electors selected along economic and professional lines. The election campaign was dominated by issues such as employment, corruption and the growing number of visitors from mainland China.

 

Somalia to get a new President

In a historic step that is certain to end decades of war, newly-elected MPs of Somalia’s Parliament will convene at a police academy in Mogadishu on September 10 to choose the next president. The new parliament, which was selected last month, will hold a ballot to choose the president from about two dozen candidates. Among the contenders are incumbent President Sheikh Sharif Sheikh Ahmed and Prime Minister Abdiweli Mohamed Ali. It is the first time in many years that the vote has taken place on Somali soil, a sign that security is improving in the war-ravaged country. Current Islamist President Sheikh Sharif Ahmed, in power since 2009, is regarded as a favourite. The scheduled vote is the latest in a series of political transitions in the nation. In recent weeks, it has adopted a provisional constitution, held an inaugural meeting of its new parliament and appointed that body’s speaker. Many Somalis have welcomed the poll, despite fears that it may be flawed.

 

UN Resolution on Syria ‘without teeth’ – Hillary

US Secretary of State Hillary Clinton dismissed a Russian proposal for a new UN Security Council resolution on Syria as pointless, and “without teeth”. Russia says it wants Security Council approval for a peace plan agreed in June in Geneva that called for a ceasefire and political transition. But Clinton said a resolution without consequences would be ignored by Syrian President Bashar al-Assad. Activist groups in Syria say more than 160 people died in the latest fighting. Government air attacks are said to have killed many in the northern city of Aleppo, where a water supply pipe was also hit. Meanwhile, state Television has shown government troops overrunning rebel-held areas in the south of the capital Damascus.

 

US and Russia to work towards improved trade ties

US Secretary of State Hillary Clinton said that the US administration wanted to normalise trade relations with Russia. She said the government was working closely with the US Congress to get the necessary legislation passed. Although Russia is now a member of the World Trade Organisation, there is still a piece of legislation that prevents US companies from trading normally with Russia - the 1974 Jackson-Vanik amendment which, although suspended, remains in place. Mrs Clinton was speaking ahead of the Asia-Pacific Economic Co-operation (APEC) summit in Vladivostok. Russian President Vladimir Putin urged a fight against protectionism to turn the global economy around, while his Chinese counterpart, President Hu Jintao, promised his country would try to help the world’s economy by increasing the demand in China for imported goods.

 

 


Bilateral Notes      

 

Ambassador of Japan and Haryana Chief Minister exchange views on state affairs

Ambassador of Japan Akitaka Saiki called on the Chief Minister of Haryana Bhupinder Singh Hooda on August 7 to exchange views on the state of affairs between Japan and Haryana. The Ambassador, referring to the amicable relationship which the Japanese business community traditionally enjoyed with Haryana, thanked the strong support and reassuring message from the state extended to Maruti Suzuki in response to the recent incident of violence in its Manesar plant. The Ambassador expressed the hope that Haryana will continue to send out a strong message to restore investor confidence particularly of Japanese companies situated in the state. The Chief Minister gave a reassurance that the state will strive to meet the expectation of the Japanese community to ensure its well-being and security.

Ambassador of Israel and Bihar Chief Minister discuss agriculture cooperation

Ambassador of Israel, Alon Ushpiz, conducted his maiden visit to Patna, in an aim to promote ties between Israel and Bihar. The Ambassador was accompanied by the Embassy’s Agriculture Counsellor, Uri Rubinstein, and the Political Secretary, Shimon Mercer Wood. During the visit, Ushpiz held an hour-long meeting with the Chief Minister of Bihar, Nitish Kumar, and discussed plans for the establishment of two Indo-Israel Agricultural Centres of Excellence in the state, focussing on fruit and vegetable cultivation. The Chief Minister and the Ambassador also discussed possibilities for cooperation in the fields of water treatment, aquaculture, dairy and grain storage. Solar energy was also identified as a potential field for cooperation. Ambassador Ushpiz invited Chief Minister Kumar to conduct a visit to Israel in the near future. After his meeting, Ambassador Ushpiz stated: “There is no doubt that the potential for cooperation between Israel and Bihar is rich, and that what we can achieve together in agriculture and water is indeed promising. I hope that in the next couple of months we will be able to marry Israeli technologies and know-how in the fields of fruits and vegetables, dairy, crop storage and water, with the proven capabilities of the farming sector of Bihar.”

India and Pakistan ink visa deal

Pakistan and India have agreed on visa terms aimed at easing travel between the two countries. The move is part of efforts to improve ties between Islamabad and New Delhi, which were badly it in 2008 when gunmen attacked Mumbai. The deal came after talks in Islamabad between the Indian and Pakistani foreign ministers. With this deal, it would be easier for businesspeople as well as those with relatives across the border to travel freely. A visa on arrival scheme has been introduced for senior citizens as well as a new group visa aimed specifically at religious pilgrims, tourists and students. However, the meeting saw little progress on other core issues like Kashmir or India’s demand that key conspirators behind the 2008 Mumbai attacks be brought to justice.

India-Palestine strengthen bilateral ties

President of Palestine, Mahmoud Abbas arrived on a state visit to India on September 10. This was his fourth visit to India and second state visit. He was accompanied by a delegation comprising senior ministers, including Dr Saeb MS Erakat, PLO Executive Committee Member, and Nabil GO Aburudainah, President’s advisor. The visit included inter-alia meeting with President, delegation level talks with PM, calls by Vice President and External Affairs Minister. During the present visit, both sides signed MoUs for cooperation in ICT, vocational training and constructing schools in Palestine. The visit also provided an opportunity for reviewing the entire gamut of bilateral relations, the Middle East Peace Process, regional and international issues of common concern and in particular the political turmoil in West Asia.


 

Corporate News      

 

Air India gets first Dreamliner after four year delay  

Air India received the advanced Boeing 787 Dreamliner on September 8, ending an over four-year wait of the struggling national carrier to add this next-generation airplane in its fleet. Air India, which ordered 27 Dreamliners six years ago, would get two more of these planes in the next few weeks. A total of eight of them would arrive by March next year, including five by December, while the national carrier would get six more in the 2012-13 fiscal. The aircraft, regarded as core to the carrier’s turnaround plan, would ultimately become the mainstay of Air India’s global operations. For Air India, the plane has been configured to have 256 seats - 18 full-flat business class seats and 238 in economy. It features a host of sophisticated technologies, including mood-lighting inside the cabin and large LCD display screens for in-flight entertainment.

 

Hershey to acquire Godrej stake in JV

US-based chocolate maker Hershey Co will buy the stake of Godrej Industries Ltd in their joint venture (JV) Godrej Hershey Ltd (GHL). The transaction is expected to close by the end of the second quarter of fiscal year 2012-13. After the transaction, the company will become a wholly owned subsidiary of Hershey. The value of the transaction wasn’t announced. The Godrej Hershey JV was formed in 2007 and had `240 crore business in India as of financial year 2012 in the confectionery and beverage categories.

Infosys to buy Lodestone Holding

Infosys has agreed to buy Zurich-based Lodestone Holding AG in a deal valued at 330 million Swiss francs. The acquisition may take Infosys a step closer to its goal of becoming a software-and-services giant providing clients with higher value services and consulting. The company has recently completed implementing Infosys 3.0; a strategy that it expects will take it towards this goal. The software giant, which symbolises India’s rise as an outsourcing powerhouse, has struggled this year. It has missed sales targets, lost market share, put off an annual pay rise and seen its stock battered. India’s No 2 software services provider expects to conclude the all-cash deal by October.

OVL to acquire Hess Corporation’s stake in ACG fields in Azerbaijan

ONGC Videsh Ltd (OVL) will buy US energy firm Hess’ stake in Azerbaijan’s giant Azeri-Chirag-Gunashli (ACG) oil field for an undisclosed amount. OVL, the overseas arm of state-owned Oil and Natural Gas Corp (ONGC), has reached an agreement to buy 2.72 percent stake held by Hess in the largest oil field in the Azerbaijan sector of the Caspian basin. ACG is also one of the largest producing oil fields in the world. The average production from the field is around 7,00,000 barrels of oil a day. The potential recovery from the field is estimated at over five billion barrels. This acquisition marks OVL’s entry into oil-rich Azerbaijan.

 

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