Myanmar grants access to one U.S. aid shipment

By FOSTER KLUG, Associated Press Writer

The governing military junta in Myanmar has agreed to allow a single U.S. cargo aircraft to bring in relief supplies for victims of a devastating cyclone, the Bush administration said Friday.

White House spokesman Gordon Johndroe said the United States welcomed the go-ahead to land a U.S. military C-130 in the country on Monday. He said he hopes this is the beginning of continued aid flowing into Myanmar from the United States, other nations and international relief agencies.

Earlier Friday, Ky Luu, director of the U.S. office of foreign disaster assistance, had said that skilled aid workers were being forced to sit on the sidelines as victims of last week's cyclone were dying. His comments reflect mounting frustration among the United States and other countries as they wait for permission from the military-led government to begin trying to help.

Said Johndroe: "We will continue to work with the government of Burma to allow other assistance. We hope that this is the beginning of a long line of assistance from the United States to Burma." Myanmar is also known as Burma.

Johndroe also said that while the U.S. still has limited leeway to help, "One flight is much better than no flights."

"They're going to need our help for a long time," Johndroe said. He spoke in Crawford, Texas, where President Bush's daughter, Jenna, will be wed on Saturday.

The breakthrough came after days of waiting on the U.S. side. It is not yet known what supplies will be included. U.S. aircraft have been positioned in Thailand and elsewhere nearby waiting for permission to transport supplies to the cyclone-devastated country.

The U.S. military has C-130 cargo aircraft and about a dozen helicopters in the region, ready to fly supplies into Myanmar. Pentagon spokesman Bryan Whitman said Friday that the aircraft could reach Myanmar in a few hours.

In addition, U.S. Navy ships have begun moving from the Gulf of Thailand toward Myanmar to be available if needed.

Johndroe said he could not speak to one specific cause for the breakthrough, but added: "Clearly the junta has determined that the magnitude of this disaster requires additional assistance."

Myanmar has been under military rule since 1962. The current junta came to power after snuffing out a 1988 pro-democracy movement against the previous military dictatorship, killing at least 3,000 people in the process. The junta also violently crushed protests last year.

Luu had urged the generals to allow access to foreign aid teams, including a group of U.S. specialists waiting in Thailand; he said desperately needed supplies are piling up on airport tarmacs.

"This is a very vulnerable population, and a shock of this magnitude is going to take people right off the cliff," Luu told an audience at the Center for Strategic and International Studies, a foreign affairs think tank in Washington.

He said the message to the junta is clear: If it allows U.S. officials in, "we will be able to make a difference."

"People are dying, and it's approaching a week," he said.

Myanmar's ruling military junta earlier seized two planeloads of critical aid sent by the U.N. The U.N. food program suspended help after the action, but later said it is sending two planes to Myanmar to help hungry and homeless survivors.

Officials have said that up to 1.9 million people are homeless, injured or threatened by disease and hunger, and only one out of 10 have received some kind of aid in the six days since the cyclone hit.

Tony Banbury, Asia director for the U.N. World Food Program, said by satellite from Thailand that the "big issue" is: What are the Myanmar authorities going to do? The WFP, he said, will keep working, but "I don't think we have much leverage with the authorities."

"Our hands are getting more and more tied," he said. "The situation is obviously desperate."

Sein Win, an exiled leader of Myanmar's opposition, said in an interview that the United States and other nations must more strongly pressure China, which is seen as having significant economic and political influence with Myanmar's generals.

"The world is not telling China to do what they should do ... to save people," Win said. He added that China has leverage over Myanmar, and said "the question is whether they are going to use it or not."

Currency impasse overshadows U.S.-China deals

Reuters

The United States and China struck civil aviation and financial sector access deals on Wednesday but they made no headway on the divisive issue of Chinese currency reform, stoking anger on Capitol Hill.

Lawmakers said they would move ahead with proposals to slap tariffs on Chinese imports because of Beijing's reluctance to redress the huge trade imbalance between the economic giants with a revaluation of the yuan.

The anger in Congress overshadowed U.S. Treasury Secretary Henry Paulson's claim of "tangible results" in the second leg of a "strategic economic dialogue" with Chinese Vice Premier Wu Yi.

Wu, for her part, said the "complicated" relations between Washington and Beijing needed careful handling and cautioned against retaliatory steps.

"It calls for direct consultation and dialogue between us, instead of easy resort to threat or sanctions," Wu said after two days of closed-door talks with Bush administration officials.

The official China Daily newspaper said in an editorial that both countries bore responsibility for the trade gap between them and warned against U.S. impatience for a rapid cure.

"The dialogue made it clear that a confrontational approach focusing on so-called immediate results only complicates the situation and adds nothing to problem solving," it said.

China's stellar economic growth was indeed too dependent on exports, the daily said, but it was also "all too obvious that the U.S. consumers spend too much and save too little, resulting in their country's current account deficit."

Tension was heightened during the talks by mounting concern about the safety of Chinese exports after reports about toxic toothpaste and contaminated pet food.

U.S. officials said they stressed to their Chinese counterparts that food and medicine safety was a "top concern."

"Recent events have forced very clearly as one of our top concerns the safety of food and medicine," Health and Human Services Secretary Mike Leavitt said.

CHINA "DOING ITS BEST"

The most concrete outcome of the talks was a deal committing China to remove a bar on new foreign securities firms and resume issuing licenses for securities companies, including joint ventures, in the second half of 2007.

That was a coup for former Goldman Sachs chairman Paulson, who has made gaining greater access to the Chinese financial sector a key objective.

The two sides also agreed on a new aviation pact that U.S. transportation officials said would more than double the number of passenger flights between the two countries by 2012.

Meanwhile, Chinese Vice Commerce Minister Ma Xiuhong said a Chinese business delegation on a 24-state U.S. tour had signed $32.6 billion in deals so far.

The buying spree appeared timed to soften U.S. congressional criticism of China's practice of managing its currency, the yuan, in a way that U.S. lawmakers and companies complain makes Chinese products unfairly cheap in U.S. markets.

But the chairman of the powerful House of Representatives Ways and Means Committee, New York Democrat Charles Rangel, said after a meeting between Wu and committee members that "we're moving forward" on tariff legislation.

Rangel favors a bill to let the Commerce Department levy duties on Chinese goods to offset the "subsidy" effect of China's exchange-rate policies.

Rangel's swift decision suggested that time was running out for Paulson to show that persuasion is sufficient to get China to permit the yuan to appreciate more quickly.

In July 2005, China abandoned an 11-year-old practice of holding the yuan fixed against the dollar and revalued it by 2.1 percent. But since then it has risen only a further 6 percent, frustrating U.S. legislators.

The head of China's central bank, Zhou Xiaochuan, said China had pressures of its own to deal with that made it hard to speed up currency reform.

"They may think that we can accelerate the speed of reform, but we think that we already try our best, and domestically we have pressure to slow down," Zhou told reporters after meeting the lawmakers.

China remains an emerging-market economy only partly driven by free-market forces, but its cheap labor force and exporting prowess have enabled it to become the world's fourth-largest economy, behind the United States, Japan and Germany.

Chinese Ministers, Bush to Meet on Trade

Associated Press

Preparing to meet President Bush, Chinese ministers sought to soothe congressional anxiety about Beijing's trade practices after high-level economic talks yielded few results.

Discussions Wednesday between senior Bush administration officials and the largest high-level Chinese delegation ever to visit the United States also failed to reach a breakthrough in the countries' biggest dispute: China's undervalued currency.

After the talks, Vice Premier Wu Yi, leading the Chinese group, met privately with frustrated congressional leaders. She also planned separate meetings Thursday with Bush and senators.

Wu, speaking through an interpreter, said Wednesday that her discussions with House Speaker Nancy Pelosi and other lawmakers were "very good," but she provided no other details.

After the meeting, Ways and Means Committee Chairman Rep. Charles Rangel said the Chinese told lawmakers they needed more time to overhaul their currency system and make other changes.

Rangel, a New York Democrat, told reporters that his committee planned to move forward with legislation; some of the bills being considered would impose stiff penalties on Chinese imports for what critics say are unfair Chinese trade practices that have driven U.S. trade deficits to record levels and cost thousands of manufacturing jobs.

Democratic Sen. Charles Schumer, a leading critic of China, described the frustration he said his colleagues felt. "There's never any action," he said in an interview. "I don't think a press release is going to assuage Congress' worries. We need results."

Despite the criticism, both Wu and Treasury Secretary Henry Paulson, head of the U.S. delegation at the talks, sounded positive about the importance of the new high-level "strategic economic dialogue" between the countries, which occur twice a year.

The delegations agreed Wednesday to more than double the number of daily passenger flights between the two nations by 2012, going from 10 to 23. Cargo flights also were increased. The gains fell short of the openings the Bush administration had hoped to achieve.

In the area of financial services, China agreed to a slight expansion in business opportunities for U.S. companies but not the lifting of caps on foreign ownership of banks, securities firms and insurance companies that U.S. firms had sought.

China also rejected U.S. requests that it accelerate the revaluing of its currency, the yuan, which American manufacturers contend is undervalued by as much as 40 percent. That makes Chinese products cheaper for Americans and U.S. goods more expensive in China.

For her part, Wu called the talks "a complete success" and said it was important to continue direct consultations between the two nations rather than resorting to "threat and sanctions."

U.S. business groups had a decidedly more downbeat response.

"It's clear that this dialogue has been nothing but a cynical Bush administration exercise in spin and public relations," said Kevin Kearns, president of the U.S. Business and Industry Council, which represents small and medium-size manufacturing companies. "The failure of the White House's approach is now clear, so the ball is clearly in Congress' court."

New Chinese rules maintain strict registry of bloggers

By ALEXA OLESEN, Associated Press Writer

New rules by a Chinese government-backed Internet group maintain strict controls over the country's bloggers, requiring them to register with their real names and identification cards.

The guidelines from the Internet Society of China, a group made up of China's major Internet companies, contradict state media reports this week claiming that China was considering loosening registration requirements for bloggers to allow anonymous online journaling.

The society's new draft code of conduct seen on its Web site Wednesday says Web log service providers must still get their users' real names and contact information.

Critics say the requirement violates a blogger's right to freedom of expression and puts them at risk of punishment or imprisonment if they post controversial opinions about politics, religion or other issues.

The society's proposed code of conduct for blog service providers comes in addition to already existing government regulations that govern China's Internet. The country's official Internet watchdog banned anonymous Web site and blog registration in 2005.

Online bulletin boards and blogs are the only forum for most Chinese to express opinions before a large audience in a society where all media are state-controlled.

China has the world's second-biggest population of Internet users after the United States, with 137 million people online. It also has some 20 million blogs, according to government figures.

But Chinese leaders try to block online material deemed pornographic or a threat to communist rule.

Web site owners have been required to register their identities since 2005, leaving bloggers no way to post material online anonymously within China. They can use overseas services, but access to those from within China is frequently blocked by the government.

A report Tuesday by the official Xinhua News Agency said the society's guidelines would loosen controls by letting bloggers use pseudonyms when blogging on the net.

However, the guidelines on the ISC Web site say clearly that they require Internet services to register clients' identities. It adds that providers should encourage them to use real names when blogging too.

The code is aimed at "limiting and preventing unhealthy and illegal content on the Web," the document said.

It said some people use blogs to "disseminate objectionable content, seriously disrupting social order and the public interest and polluting the online network environment."

The code, drafted with input from major Chinese Internet companies such as Sina Corp., Sohu.com Inc. and Netease, was posted on the site this week to allow public comment before it takes effect, the introduction says.

It didn't say when they would take effect.

The society said it would publish a list of providers who promise to follow the code.