LEADING DEVELOPMENTS [source: Jan 12 {Bloomberg} wires; other wires] Jan 12-- BRAZILIAN MARKETS IN TURMOIL. The Brazilian stock and bond markets fell to their lowest level in 4 months, and futures trading in the Brazilian real currency came to a complete halt, in a frightened response to the 90-day debt moratorium imposed by the Governor of Minas Gerais, Itamar Franco. The Brazilian Bovespa stock market, after falling a combined 8 percent on Thursday and Friday of last week, and 5.8% on Monday of this week, fell 7.6% today, to close at 5916, its lowest level in 4 months. The government's key "C" bond, which had fallen 3% yesterday, fell another 2.9% today, also to its lowest level in 4 months. There are signs of market singularity, which if sustained over a few days could lead to panic. For example, the rate on one-day certificates of deposit, which is an interest rates futures contract--indicating the expectation of future interest rates--and the most actively traded futures contract traded on Sao Paolo's commodities and futures exchange, soared 522 basis points (5.22 interest rate percentage points) to 37.46%, which is the highest level since October's 39.0% level. Moreover, in Brazil's currency futures market, which normally trades currency contracts of up to two to three months in the future, there were no takers on real currency contracts that expired in April. When no one wants to trade currency futures in the currency of an economy as large as Brazil's, this shows simultaneously expectation that the currency will be devalued, and widespread fright. Further, according to reports from Brazil, today investors pulled $1.1 billion in flight capital out of Brazil. Brazil's foreign reserves, which stood at $75 billion in August of last year, are now $35 billion. "I'm really starting to wonder where Brazil is going to get the $60 billion in foreign currency it needs this year," said Francisco Gros, Brazil chairman for Morgan Stanley Dean Witter & Co, and a former central bank president. "I'm not seeing any possibility of debt sales for the moment." [Source: wires, FNS transcript of NSC briefing on Menem-Clinton talks, EIR/Buenos Aires, Jan. 12] BRAZIL'S FINANCIAL CRISIS COLORS ARGENTINE PRESIDENT'S VISIT TO WASHINGTON. National Security Council's James Dobbins reported today that Presidents Clinton and Carlos Menem discussed the Brazil financial crisis during their meeting on Monday, when Treasury Secretary Robert Rubin joined their discussions. Dobbins would say that Rubin "expressed the importance of supporting Brazil and Brazilian reforms as a way of insulating the Western Hemisphere from the global economic turndown that's taken place elsewhere." On Jan. 12, Menem and Rubin met for breakfast with the heads of the IMF complex: IMF's Michel Camdessus, World Bank's James Wolfensohn, and the Inter-American Development Bank's Enrique Iglesias. The topic, again, was Brazil. Not much was reported following the meeting. Rubin told reporters afterwards that Brazil's President F.H. Cardoso "is absolutely committed to doing what needs to be done and he has the support of the global community." Iglesias forecast that the Minas Gerais debt moratorium problem "will settle. Back in Buenos Aires, there is panic over the Brazil crash. The risk premium on Argentine loans has risen again, and the stock market is following Brazil's--down. Currency board thug Domingo Cavallo offered his recommendation, that Cardoso use "an iron fist" against Itamar Franco. [Source: wires 12.1.99] WIESBADEN, January 12 -- RUSSIA TIGHTENS FOREIGN EXCHANGE CONTROLS, IMPOSES EXPORT TARIFFS ON COMMODITIES. The Russian Central Bank on Jan. 11 announced new rules for managing export earnings, requiring any Russian exporter to repatriate 75% of hard currency revenues, instead of the previous level of 50%. That is, exporters are only allowed to keep one quarter of their hard currency earnings, while the rest has to be converted into Rubles. The new rule already went into effect on Jan. 10. Furthermore, the Central Bank now demands that this conversion of exporter's hard currency into Rubles be completed within 7 working days after the export income has been generated, instead of the previous 14 working day limit. Meanwhile, the Ruble is further falling, reaching 23.06 Rubles per US-Dollar, compared to 22.40 Rubles on Sunday. According to Reuters, Russian Prime Minister Primakov has signed a resolution restricting exports of some commodities by introducing a 10% export tariff for 6 months from the date of its official publication on. The resolution was already signed on January 4th, but has not yet been published. The export tariff will be imposed on 7 metals, that is, copper, nickel, aluminium, lead, zinc, cobalt, and titanium, but also on several agricultural products. [Source: London Times 12.1.99] WIESBADEN, January 12 -- POPE CONDEMNS AIR STRIKES AS "LAW OF THE STRONGEST." According to a report in the London, the Pope on Jan. 11 condemned the United States and Britain for their bombing raids on Iraq, which solved nothing and if anything, had made matters worse. In his annual "state of the world" address to diplomats, the Pope said that war "does not solve problems, it only complicates them, and leaves the civilian population to bear the tragic consequences." The pope added, "International law cannot be the law of the strongest, or of a simple majority of states, or even of an international organization.... It must be a law which conforms to the principles of natural and moral law, which are always binding on parties in conflict and the various issues in dispute." On January 22, the Pope will visit Mexico and 4 days later will stop in the US to meet Bill Clinton. Concerning the collapsed peace process in the Mid East, the Pope noted "it is not possible to keep people indefinitely between war and peace without the risk of dangerously increasing tension and violence." It would be unwise to delay tackling the status of Jerusalem any further. Only "honest dialogue, a real concern for the welfare of people and respect for the international order" could bring lasting solutions to a region where Islam, Judaism, and Christianity all had their roots. [Source: Fed News transript, Berger, 1/12/98] U.S. NATIONAL SECURITY ADVISOR SANDY BERGER GAVE THE FIRST ADDRESS ON JAN. 12 AT THE CARNEGIE MEETING ON NUCLEAR NON-PROLIFERATION, KICKING OFF A DAY THAT INCLUDED SPEECHES FROM INDIA, ISRAEL, RUSSIA, AND CHINA, IN ADDITION TO THE U.S. Several of the speeches (which will be reported in the Jan. 14 briefing) contained sharply worded statements about nuclear threats and violations of the non-proliferation treaty. Berger's speech, made while Defense Secretary Cohen, another member of the Gore-dominated "principal's committee," was in Japan, delivering "warnings" to North Korea and Iraq, is an illustration of the war danger that LaRouche outlined in his article on Confederate General Shelton, and why he must retire. Berger said, that ``1998 was a troubling year; a year of living dangerously" where "several problems took a turn for the worse and perilous new trends have emerged." "All of you here know what the key developments were. In May, India and Pakistan conducted nuclear tests that blew the lid off South Asia's long-simmering nuclear rivalry. These explosions threatened to trigger a far-fledged (sic) nuclear and missile race in the region. "Also ominous was the rhetoric that surrounded these blasts, suggesting that many politicians and citizens in India and Pakistan believe that a nuclear weapons capability provided instant great power, status. In July, Iran's test of the Shahab-3 missile, its version of the North Korean Nodong, extended Teheran's capability to target U.S. friends and allies in the Middle East as well as our forces in the region. Combined with Iran's continued pursuit of nuclear weapons, this missile development threatens the stability of the region, as if the stability of that region needed further threatening. "In August, North Korea tested a Taepo Dong missile over Japan. This test, and the revelation that North Korea's constructing a suspicious underground site, have raised questions about the North Korean compliance with the Agreed Framework we negotiated in 1994 aimed at bringing stability and discouraging proliferation on the Korean Peninsula. If that agreement unravels, we could quickly return to the environment similar to '93 and '94 with increased risk of war and North Korean resumption of plutonium production. "In August, Russia's economic crisis had heightened the challenge for Russia to control the leakage of sensitive weapons-related materials and technology beyond its borders. Weapons scientists and institutes face increased financial pressures to sell their wares to whomever is in the market, including rogue states." "Finally, in December, Saddam Hussein once again broke his commitment to cooperate with the U.N. inspectors, ignoring our warnings...." [source: Fed News transcript of Berger speech, 1/12/99] NATIONAL SECURITY ADVISOR SANDY BERGER SPEECH TO THE CARNEGIE ENDOWMENT'S NON-PROLIFERATION CONFERENCE ON TUESDAY, REFLECTS THE ESCALATION OF TENSIONS GLOBALLY, ESPECIALLY ON THE NUCLEAR FRONT. In remarks which were uncharacteristic of other U.S. speakers at the conference, Berger made a number of specific policy statements on Iraq (see separate slug); on North Korea, and on the Russia situation. On Russia, where the post-Iraq strain continues, Berger announced that three ``entities'' in Moscow were being put under ``economic penalties'' for providing sensitive nuclear or missile technology to Iran. He stressed that the U.S. has the authority to take this action, which had previously been taken in July, 1998, when Pres. Clinton imposed penalties on 7 other institutions. "I want to announce that today the United States is imposing economic penalties against three additional Russian entities -- the Moscow Aviation Institute, Mendelyev University, NIKIET, or the Science Research and Design Institute of Power Technology -- for providing sensitive missile or nuclear assistance to Iran. Last July we took action against seven others. "Let me be very clear. The administration has authority to act against entities that violate international non-proliferation standards, and we will use that authority to protect our security. In the end, though, the most effective shield against proliferation from Russia is not U.S. penalties but a Russian export control system that is designed to work and does. Only Russia can police its own borders, factories and technology industries." [source: FNS transcript of remarks of U.S. National Security Adviser Sandy Berger at Carnegie Endowment Conference on Non-Proliferation, Jan. 12, 1999] U.S. NATIONAL SECURITY ADVISOR SANDY BERGER ON IRAQ. At his speech to the Carnegie Endowment for Peace conference on non-proliferation on Jan. 12, Sandy Berger had the following to say with regard to Iraq: ``On Iraq, the administration will use all means, including, if necessary, additional military force, to obtain Saddam's compliance with Iraq's commitments regarding weapons of mass destruction and with the relevant Security Council resolutions. We will adhere to our position that disarmament under these resolutions is the only path to sanctions relief. And we continue to believe that UNSCOM is the appropriate entity to verify and monitor Iraq's disarmament. ``It is up to Saddam to decide whether he wants sanctions relief by giving up his weapons of mass destruction. In the meantime, we will be ready to act again if we see Iraq rebuilding a WMD capacity. We will also continue to offer and enhance our humanitarian assistance to the Iraqi people, and most importantly, work toward the day when Iraq has a government that respects its people and lives in peace with its neighbors. It is clear that real disarmament in Iraq will come only when there is a new government in Baghdad.'' ECO-FIN Jan. 12 (EIRNS)--THE STOCK MARKET IS FOR YAHOOS. Yahoo!, the Internet site, saw its stock rise 71 points--21%--to 414.5 on Jan. 11, raising its market capitalization to $41 billion, up $7 billion in just one day. (The {combined} market capitalization of USX-Steel and Bethlehem Steel is just under $3.7 billion, or roughly half of what Yahoo! grew in just one trading session.) America Online had a more modest day, rising just 19 points--13%--but raising its market capitalization $8.5 billion to $75.7 billion, moving it ahead of Ford, which it had trailed by $7 billion as of Friday, Jan. 8. Amazon.com saw its market share rise $3.9 billion, and Internet search engine Excite rose $1.2 billion, to $4.3 billion, a 40% increase. Broadcast.com rose a whopping $87--44%--for the day, CMGI rose over $70, and eight other Internet stocks rose more than $20 a share yesterday. Some selected market capitalizations, as of the Jan. 11 close, in billions: Company Cap. -------------- ----- America Online 75.65 Ford 73.48 Du Pont 66.99 General Motors 56.33 Yahoo! 40.91 Boeing 35.09 Amazon.com 29.22 Dow Chemical 21.51 Caterpillar 19.01 Lockheed 15.73 eBay 11.74 USX-Steel 2.40 Bethlehem Steel 1.28 Wiesbaden, 12 Jan. (EIRNS) -- THE FIGHT BY THE TONY BLAIR GOVERNMENT TO ABOLISH THE HOUSE OF LORDS IS A LIFE OR DEATH BATTLE FOR BLAIR,' commented the above London source. "Last session of Parliament the Lords blocked repeated initiatives of Blair and he has to get them out if he is to impose his agenda. But it is a fierce fight whose outcome is by no means clear; it cuts to the heart of the British establishment. As well Rupert Murdoch at this point is going full steam in his press against Blair, underscoring a definite shift against Labour." [Source: Associated press & combined wires, 1/12/98] THE RUSSIAN GOVERNMENT IS PLANNING TO SPEND ABOUT $4.6 BILLION ON FOREIGN DEBT SERVICING, according to figures released during a session of the Duma (Parliament) on the budget, reports {Associated Press} from Moscow. The wire report says that the Foreign Ministry confirmed this outlook explaining that the government "has no more than $5 billion" to service foreign debts. Russia has foreign debt of $17.5 billion that matures this year. [source: Jan 12 AP wire] Jan 12-- WORLD RAW STEEL PRODUCTION FALLS 2.5% IN 1998. Global raw steel output fell to 778.2 million metric tons, down 2.5 percent from 798.5 million metric tons, the U.N. Economic Commission for Europe reported today. During 1998, steel output was increasing or steady during the first part of the year, but declined at a growing rate toward the end of the year, indicating the global downturn of many types of basic production, including steel, machine tools, and farm equipment. Within the overall downturn, the raw steel output of China, the world's largest producer, increased. The table shows the output of the three largest steel producers: - Raw Steel Output - (in millions of metric tons) 1998 1997 Change in Production 1998 compared to 1997 China 114.0 108.0 5.6% United States 97.5 98.5 - 1.0% Japan 104.5 93.6 - 10.4% The raw steel output of eastern Europe fell by 6.3%. [ref] [source: Jan 12 wires] Jan 12-- DOLLAR RISES AGAINST THE YEN... FOR THE MOMENT. The dollar closed at 112.50 Japanese yen in Tokyo today, after falling as low as 108.21 yen on Monday, which had constituted a 28 month low. In support operations today, the Bank of Japan reportedly bought between $1 and $2 billion worth of dollars. UNITED STATES Jan. 12 (EIRNS)--CLINTON RESPONDS TO HOUSE ARTICLES OF IMPEACHMENT. Lawyers for President Clinton filed a 13-page answer to the Articles of Impeachment yesterday in the U.S. Senate. The President responded by asserting that the charges in the Articles of Impeachment "do not permit the conviction and removal from office of a duly elected President." "The charges in the articles do not rise to the level of "high Crimes and Misdemeanors" as contemplated by the Founding Fathers, and they do not satisfy the rigorous constitutional standard applied throughout our Nation's history," the preamble to the answer stated. "Accordingly, the Articles of Impeachment should be dismissed." The White House did not file an actual motion to dismiss the articles, which will not be done until after the first round of presentations and questioning in the Senate trial. [source: White House briefing, AP, Washington Post, Jan. 12] HOUSE MANAGERS FILE LEGAL BRIEF, READS LIKE "A CHEAP MYSTERY." The House of Representatives impeachment managers filed a 105-page trial memorandum on Jan. 11, which the White House described as an overblown account that "reads like a cheap mystery." "I think there is overblown rhetoric in there about sinister plots," White House spokesman Joe Lockhart said. Part of what Lockhart was referring to, was a statement in the House brief which said that the Senate must consider the entire pattern of the President's actions (which some interpret as making an argument for the introduction of the now-famous "secret evidence"). "It is essential to avoid considering each event in isolation, and then treating it separately," the House memo warns darkly. "Events and words that may seem innocent or even exculpatory in a vacuum may well take on a sinister or even a criminal connotation when observed in the context of the whole plot." Jan. 12--DID REHNQUIST LIE UNDER OATH? There is abundant evidence that Chief Justice William Rehnquist lied under oath during his Senate confirmation hearings in 1971 and again in 1986. The current issue of {New Federalist} reprints a 1992 {NF} article which describes the arguments Rehnquist made as a clerk to Supreme Court Justice Robert Jackson in 1952, in which Rehnquist contended that the Supreme Court should uphold segregation. During his first confirmation hearing for the Supreme Court, in 1971, Rehnquist was asked about a memorandum he had written which argued that the segregationist "separate but equal" doctrine should be upheld by the court. Rehnquist stated that the memorandum represented Justice Jackson's views, not his own. This was disputed by a number of people at the time, including Jackson's longtime secretary and confidant Elsie Douglas, who said that Rehnquist's story was "incredible on its face," and that he had "smeared the reputation of a great jurist" by attributing segregationist views to Justice Jackson. In 1986, when Rehnquist was nominated for Chief Justice, the issue came up again. Despite new evidence which had surfaced concerning his 1952 memorandum--some of which was reported in the 1975 book on the school desegregation cases, {Simple Justice} by Richard Kluger--Rehnquist stuck to his story, under questioning by Senator Edward Kennedy and others. Under oath, Rehnquist maintained that the "I" in the memo (it was written in the first person), referred to Jackson, not himself. As legal writer Jeffrey Rosen puts it in the January 11 issue of the {New Yorker}: "it all depends on what I mean by `I.'" In 1971 and again in 1986, Rehnquist was also confronted with evidence that he was part of a Republican party effort to prevent blacks and hispanics from voting in Arizona in the early 1960s. In his 1986 hearings, Rehnquist testified that he had never directly challenged any voters at the polls. Rehnquist claimed his role was to "arbitrate" disputes, but a former federal prosecutor, James Brosnahan, who had collected statements about voter intimidation for the FBI, testified otherwise. Another eyewitness, Dr. Sidney Smith, testified that he had seen Rehnquist confront two black men at a polling place, and tell them; "You have no business being in this line trying to vote. I ask you to leave." As we reported in the Jan. 11 morning briefing, the {Arizona Republic} of Phoenix has reported more details of the 1962 and 1964 incidents, and notes that some local citizens who were involved in the incidents with Rehnquist "think he lied, under oath, at both hearings." One is Manuel Pena, a 30-year veteran of the Arizona state legislature, who was a poll-watcher in south Phoenix during the 1962 elections, and who had confronted Rehnquist who was illegally challenging voters inside a polling place. In fact, Pena and Rehnquist almost came to blows. As Pena puts it: "It's just ironic that we have somebody presiding over a Senate that may find the President guilty of perjury, who is himself guilty of lying under oath." EASTERN EUROPE [Source: Nezavisimaya Gazeta, Dec. 29] Jan. 12--RUSSIAN TOPOL-M PUBLICITY. The Dec. 29 Nezavisimaya Gazeta article, which reported Defense Minister Marshal Sergeyev's remarks about the Topol-M (SS-27) ICBM (in briefing of Jan. 10), went on to provide more technical specifications of the missile, as well as some nuclear saber-rattling that is reminiscent of the mid-1980s "Global Showdown" period, but with a degree of detail never heard in the pre-glasnost Soviet Union. Igor Korotchenko's article, promoting the qualities of Topol-M, is set on two stages at once: the fight within the Russian command, over resource allocation and the force structure, and, a shift towards "doomsday" military relations globally (cf. LaRouche, "Why Gen. Shelton Must Retire Now"). Korotchenko wrote, "The Russian military and political leadership intends to devote priority attention to the Topol-M program, which will be financed, regardless of the economic situation in the country." Topol-M was developed at the Moscow Heat Engineering Institute in versions for stationary basing in silos, or for ground-mobile launch vehicles. Korotchenko reported the system's launch weight, throw-weight, warhead, and so forth. He asserted, "It should be noted, that the Topol-M is capable of successfully overcoming not only the existing, but also prospective ABM systems of the United States of America." The Nezavisimaya article named five officers responsible for the deployment of the first Topol-M ICBMs, from Commander-in-Chief of the Strategic Rocket Corps Gen. Col. Vladimir Yakovlev, down to commander of the 104th Rocket Regiment Col. Yuri Petrovsky--"and several other officers, who carried out their military and professional duty under the difficult circumstances of the work being only 50% financed, and delays of many months in the payment of monetary compensation." For this reason, the 104th regiment received from Marshal Sergeyev the first-ever award pennant, "For Courage and Military Valor." In conclusion, Korotchenko wrote that the Topol-Ms would be on active duty as of Dec. 30. "Although the flight computers of all ten ICBMs are set to zero, the process of entering their combat flight data to strike targets on the continental USA, if the necessity arises, will take a little less than one minute." [Source: Komsomolskaya Pravda, via RussiaToday online, Jan. 12] Wiesbaden, Jan. 12--FOUR RUSSIAN GENERALS RESIGNED IN PROTEST OF THE TOPOL-M PROGRAM, yesterday, today's issue of reported. Their protest also goes aagaint the merger of their forces with the strategic missile forces. The four generals, the commander of the early warning missile attack forces, Gen. Sokolov, and his three deputies, submitted letters of resignation to Strategic Missile Troops commander Gen. Vladimir Yakovlev. Sokolov openly voiced his opinion that the popular Topol missile systems should not be produced and used in combat any longer, because they are "old-fashioned systems," and U.S. missile defense systems could easily bring the Topols down, he said. He added it would have been wiser to develop intelligence systems, rather than spend large amounts of money on nuclear missiles, which are already plentiful in Russia. [Source: RussiaToday online, Jan. 12] Wiesbaden, Jan. 12--RUSSIA PRESENTED THE FIRST PROTOTYPE OF ITS STEALTH BOMBER, developed by MIG, yesterday. The aircraft, known as "Project 1.42" among western experts, is said to have the same capacities as the American version. The project of a genuine Russian version of stealth bomber technology has been debated in Russia, over the past eight years. The Primakov government wants to go ahead with funding of the program, now. According to {AP}, Defense Minister Sergeyev and Russian Orthodox Metropolitan Kirill attended the ceremony. According to {AP}, the designer of the fighter, Mikhail Korzhuyev said that if this plane was used "to beat off the Anglo-American raids on Iraq," that 90 percent of all launched "guided weapons, including cruise missiles" would be shot down. [Source: Itar-Tass, Jan. 11] Wiesbaden, Jan. 12--PRIMAKOV SIGNED A DECREE ON SETTING UP A NEW SPACE ROCKET COMPLEX, which will be constructed at Svobodny, yesterday. The new complex will be of the Strela type, a complex that already exists. The Svobodny Cosmodrome project will be run under the federal Russian space program, and will be funded from extra-budget funds. From this January on, already, the mcahine-building research and production amalgamation and the Moskovsky Institut Teplotekhniki (Institute of Heat Engineering) state enterprise will participate in financing the maintenance of Svobodny Cosmodrome on the basis of agreements with the Russian Defense Ministry. The procedure of creating and operating the infrastructure, and the maintenance at the new complex will be worked out in cooperation between the defense ministry, the space agency, and a number of (select) enterprises, along the model that is already applied at the Start and Strela complexes. AFRICA Jan. 12 -- SUDAN AGRICULTURAL PRODUCTION REPORT. In a press released issued by the SAudan Embassy in London January 4, encouraging data on Sudan's agricultural production in 1998 are given. The figures make quite clear, that the famine still threatening vast layers of the population in the south, is due to the continuing war of the SPLA's John Garang, and his international masters. The press release reads as follows: "According to a report by the Minister of Agriculture and Animal Resources, agricultural production of seeds and grains for the 1998-1999 season has been estimated at 6.2 million tons, the highest rate ever inm the history of the country, and the actucal production area was 32.1 million feddans. The production area for sorghum was increased by 20% compared to last season, in spite of the fact that many cultivated areas were flooded as a result of heavy torrential rains. The production of sorghum was 4.6 million tons and that was much higher than last season. Production area for millet was increased by 4% compared to last season and the rate was over a million tons. Wheat produced was 400,000 tons this season. Sudan has signed contracts to export 800,000 tons of grain to European and Middle Eastern markets. Rice was traditionally grown, production of oil seed is estimated to 1.2 million tons. Groundnut production amounted to 800,000 tons, sesame to 274,000 tons, sunflower to 1,000 tons and cotton 106,000 tons. "Sudan consumes 2.4 tons of grain annually. "We therefore believe this is a solid background to keep in mind when some reports start circulating about 'famine' in Sudan. What these reports do not mention is that famine is actually created by the SPLA rebels in those areas controlled by them. The rebels do not allow the civilians, who are virtually captives, to build their lives nor do they allow them to go anywhere else where they could do that. The SPLA rebels keep rejecting the Sudanese Government's offer for a comprehensive ceasefire or a negotiation to a political settlement, as it is in their benefit for the famine situaiton to persist, to use it as a means for their political goals, especially when they are not affected by it but are fed on a regular basis." Jan. 12 -- SUDANESE GOVERNMENT DENIES CHARGES OF RELIGIOUS PERSECUTION. In a press release issued through the Sudan Embassy in London Jan. 6, certain facts are presented, to counter the "smear campaign" against the country, around the case of two Christian priests being put on trial. The two are accused of having been involved in exploding bombs in Khartoum in June 1998. The release explains that the martial law and court system under which they are being tried, dates back to 1986, i.e. before the current government came into power. It adds that civilians may be tried in this court, if they attack military targets, according to the law. The lawyer for the accused, chosen by them, is a southern Sudanese, a Christian and a former Vice President under the NImieri regime, named Abel Alier. The court proceedings, which are open, are being attended by European diplomats. The suspects were allowed visits and gifts by relatives, and the Vatican Ambassador during the holidays, etc. The release concludes, "Talking at this time about the sentence they may get, is mere speculation." Jan. 12 -- SUDAN HOSTS OAU MINISTERIAL MEETING ON REFUGEES, RETURNEES AND DISPLACED PERSONS IN AFRICA. The conference of the organization of African Unity, was held in the Sudanese capital, Khartoum, from Dec. 13-15, 1998. The decision of the Sudanese government to ghost the important meeting came "in light of Sudan's vast experiences on refugees as one of the first countries in Africa to receive and host large numbers of refugees since the early sixtioes," according to a press release issued before the conference. It noted, that Sudan was currently hosting "1.1 million refugees from some of its neighbors," and "has a long history of hospitality towards any person who sought refuge in its territories." The meeting in December, attended by OAU member states, the office of the UNHCR, and international organizations, issued a final declaration. In it, the group notes the deteriorating situaiton of refugees, returness and displaced persons, and recognizes the main causes "are situated within Africa itself" and says the "eradication of these causes is primarily the repsonsability of African countries with the support of the international community." The declaration notes with concern the "diminishing donor commitment to provide humanitarian assistance" but expresses appreciation for assistance rendered by the UNHCR, ICRC, etc. The declaration deals also, albeit diplomatically, with the fact that humanitarian assistance is often used by the belligerents, or to support belligerents. For example: "Bearing in mind also the security concerns of States facing problems of large scale refugee influx and internally displaced persons and the responsibility of States and non-state actors to ensure the security of humanitarian workers as well as the need to maintain the civilian and humanitarian character of the refugee camps and settlements,..." express concern about the growing problem, and urge the OAU countries to address the causes, etc. The declaration calls on countries to accede to the relevant conventions on refugees, and to adopt the necessary laws, nationally, to implement them; it reaffirms the "right to return and also the principle of volontary repatriation" and appeals to countries to make this possible; it calls for integrating those who cannot return home. the declaration expresses the gravest concern over the rate of increase in the displaced persons and refugees, and appeals to internaiotnal bodies to generously contribute" to alleviate the problem. It urges all member-states to guarantee the security of humanitarian personnel and "request organizations and aid workers to abide by the national laws and regulations of the countries where they operate." Most importantly, they "urge Member States and all other actors, in consultation with the OAU and UNHCR, to separate armed elements from civilian refugee population to ensure the civilian and humanitarian character of refugee camps and settlements." MIDDLE EAST Jan. 12 -- IRAQ CRISIS ESCALATING DAILY. In accordance with British-American military plans to renew aggression against Iraq by the end of Ramadan, incidents are occurring daily, and the war rhetoric is heating up as well. Another clash was reported Jan. 11, when US fighter jets attacks Iraqi missile sites, allegedly after Iraqi air defense missile systems had iluminated them. Two F-15s dropped precision guided bombs in a missile launmch site, and an F-16 fired a HARM missiles at another target. A report in the Jordan Times quoted US officials in Washington, saying that the UK and US would continue their monitoring of the no-fly zones. NSC spokesman David Leavy said, "The coalition (sic) will continue to enforce the no-fly zones vigorously. These provocations are a reminder of the threat that President Saddam [Hussein] poses to the region and the need for vigilance in containing that threat." Kuwait has reportedly put its army units on "maximum combat alert," according to the same report. Kuwait is said to have 15,300 active forces and 24,000 reserves, according to the London International Institute for Strategic Studies, and the Kuwaiti defence Minister Sheikh Salem Sabah Al Salem Al Sabah, said that measures would be taken to call up the reserves. Iraqi statements Jan. 10, to the effect that it would no longer recognize the validity of the UN resolutions, including the one demarcating the border to Kuwait, were interpreted in Kuwait as threats. US Secretary of Defense Cohen again said on Jan. 11, that the US would move militarily if Kuwait or other neighbors were threatened by Iraq. He pointed to Iraq's possible refusal to recognize Kuwait as a violation of the UNSC resolutions. In response to questions regarding plans for post-Ramadan attacks, he refused to be explicit, but said, "I wouldn't want to speculate on what we might do in the future." According to the Independent Jan. 12, "It is possible the US may deploy more forces to defend Kuwait." It referes to a meeting of Clinton with his national security team Jan. 9, during which this was discussed. [Source: Ha'arett, January 12, 1999] SHIMON PERES CALLS FOR A NEGOTIATED PALESTINIAN STATE: Speaking before the Palestinian legislature, Shimon Peres called for the Palestinians to forge and independent state through negotiations. "It is our deep hope that the Palestinians will gain independence. It's in our common interest to see a Palestinian state in place as a result of negotiations--a stete that lives democratically and flourishes economically." Peres received a standing ovation, although only 20 of the 88 legislators were there. U.S. Congressman Thomas Lantos also made a plea for the Palestinians not to unilaterally declare a state on May 4. "My plea to my Palestinian friends is just a simple plea. Don't do anything on May 4 because all hell will break loose and your achievments will go down the drain." Also present at the meeting were other board members of the Peres Center for Peace who are in the region for a meeting of that organization's board. This includes Mikhail Gorbachev, Archbishop Desmond Tutu and former South African President F.W. de Klerk. Both Henry Kissinger and Egyptian Foreign Minister Amir Moussa were also on hand at the Center's event held in Tel Aviv.
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