Taiwan and China agree terms of landmark trade deal

(Reuters) – A landmark trade deal between Taiwan and China will cut tariffs on more than 800 products and open up service industries, officials and sources said on Thursday, giving a major boost to around $100 billion in annual two-way trade.

World | China

The most significant deal between the former political foes in 60 years will be signed on June 29 in Chongqing, once briefly the capital of China under the rule of the Nationalists, who are now Taiwan’s ruling party after losing the civil war to Mao Zedong’s Communists in 1949 and retreating to the island.

Taiwan’s government has been heavily pushing the deal, fearing the country’s $390 billion export-led economy will lose out to rivals in the booming Chinese market.

“In all free-trade agreement negotiations, there are bound to be winners and losers,” said Tony Phoo, an economist with HSBC in Taipei.

“I think, looking at what we have so far, the list covers most of the top export categories for what Taiwan ships to China, so it’s not too bad of a deal.

The economic cooperation framework agreement (ECFA) would see tariffs cut on 539 Taiwanese products bound for China and 267 Chinese products exported to Taiwan, Premier Wu Den-yih told reporters at parliament. The cuts on the Taiwan items are valued at $13.84 billion and those from China $2.86 billion.

Separately, a source with direct knowledge of the deal told Reuters it would also open up to Chinese investment Taiwan industries, including movies and business services, while the mainland’s computer service, airline maintenance and medical sectors would be opened to Taiwanese investment.

The source, who could not be identified as the information has not yet been made public, added that Taiwan banks operating in China would be allowed to conduct business in China’s renminbi currency a year earlier than current rules allow.

Chinese banks will be able to convert their representative offices in Taiwan into branches after one year.

Full details of the deal are due to be announced later on Thursday.

STRONGEST EVER TIE-UP

Markets will welcome the deal as the strongest ever tie-up between export-reliant Taiwan and China, Taiwan’s biggest trade partner and top foreign investor. The tariff cuts will cover about 15 percent of Taiwan’s exports to China.

A private research body in Taiwan has previously estimated that ECFA could create some 260,000 jobs in Taiwan and lift GDP by around 1.7 percentage points a year.

The deal could also boost the chances of the ruling party at tough local elections due at the end of the year, where an opposition fearful of ECFA’s economic and political consequences will be mounting a tough challenge.

With a message that ECFA will flood Taiwan with cheap goods, creating massive unemployment, and is a first step toward a Chinese political takeover, the opposition is looking to score big in the local elections to give it chance of ousting pro-China President Ma Ying-jeou in 2012 presidential polls.

“(The deal) gives Ma a beautiful list of scores he can deliver at the next elections,” said Lin Chong-pin, strategic studies professor at Tamkang University in Taipei.

“It’s a political decision made by Beijing, not economic. It’s Beijing’s high-level strategic political decision to win the hearts and minds of the Taiwan people and preempt the pro-independence opposition party.”

The opposition, which has called for any trade deal to be done under the auspices of the World Trade Organization, plans to hold a protest rally against ECFA in Taipei on Saturday.

UPDATE 1-African Minerals says CRM investment completed

LONDON, June 16 (Reuters) – African Minerals Ltd (AMIq.L) said a proposed 167.8 million pound ($260 million) investment by China Railway Materials (CRM) to develop the Tonkolili iron ore project has been completed following Chinese government approval.

As previously announced, CRM will take a 12.5 percent stake in African Minerals as a result of the investment and has the right to appoint a non-executive director to the board.

In February, African Minerals verified the size of the Tonkolili project in Sierra Leone at 10.5 billion tonnes of magnetite, making it the biggest deposit in the world.

China’s steel sector, which produced almost half the world’s steel output last year, is the biggest consumer of iron ore.

(Reporting by Julie Crust; editing by Victoria Bryan)

($1=.6465 POUND)

Bangladesh, China to discuss defense cooperation

(Reuters) – Increased defense cooperation will be among the topics discussed when Chinese Vice President Xi Jinping visits Bangladesh, Foreign Minister Dipu Moni said on Sunday.

World

“China is the largest defense hardware supplier to Bangladesh. So talks on enhancement of the defense cooperation will be in the agenda,” Moni told a news conference, without giving details.

Bangladesh will soon add two new Chinese frigates to boost its naval fleet and increase its number of frigates to seven, a defense official told Reuters.

Officials say boosting naval capabilities is important for Bangladesh to maintain surveillance in its territory in the Bay Bengal, rich in natural resources and hydro-carbons.

Bangladesh briefly deployed naval ships in a disputed part of the bay after Myanmar began exploring for oil and gas there in October 2008.

Bangladesh withdrew the ships after Myanmar stopped the exploration, when China, a friend to both the neighboring countries, expressed deep concern.

China agreed to provide the frigates during Prime Minister Sheikh Hasina’s visit to Beijing in March, the official said asking not to identify him.

Bangladesh last added a frigate, built by South Korea, in 2001, when Hasina was also prime minister.

Xi arrives in Dhaka on Monday on a two-day visit, on the first-leg of a four nation tour. He will also visit Laos, New Zealand and Australia until June 24, Chinese embassy officials said.

He will also discuss regional, international and bilateral issues including economic and technical cooperations, Moni said.

(Reporting by Nizam Ahmed)

Ahmadinejad says China-Iran ties unhurt by sanctions

(Reuters) – Iranian President Mahmoud Ahmadinejad said China’s support for the latest U.N. sanctions against it would not harm ties, but slammed Beijing along with other nuclear powers for wanting to monopolize the technology.

World | China

Ahmadinejad, speaking during a visit to China’s commercial capital of Shanghai on Friday, dismissed Wednesday’s resolution, triggered by a nuclear program the West believes is aimed at developing atomic weapons, as “a piece of worthless paper.”

Asked if Tehran was upset by China’s vote, he highlighted the strength of ties with a country that buys millions of barrels of Iranian crude each year, had opposed new restrictions for months and together with Russia watered down the package voted on.

“There is no reason to control or weaken the relationship (with China). The main problem is the United States,” he told a news conference after visiting the city’s flagship World Expo.

“The U.S. administration is abusing power in the (U.N.) Security Council in order to impose its hegemony on other nations,” the president said, speaking through a translator.

The resolution extended punitive measures against Iran over its protracted refusal to suspend sensitive uranium enrichment activity and open up to U.N. nuclear inspectors.

Ahmadinejad was in Shanghai to attend the Iran day at the ongoing World Expo, and both China and Iran said the visit was purely related to that event.

The president lavished praise on cultural ties and shared values and targeted most of his criticism at Washington, though China was included in a sweeping attack on the U.N. Security Council.

“Five members have the veto rights, nuclear bombs and nuclear energy in their company and they want to monopolize all this technology for themselves,” the president said.

The five permanent members, the only ones able to block resolutions, are the United States, Russia, China, Britain and France.

IAEA INSPECTORS CAN STAY

He said Iran would not suspend cooperation with the International Atomic Energy Agency (IAEA) over the sanctions.

“There is no reason (for inspectors) to leave Iran. We have no problem with our peaceful nuclear program,” he said, adding that Iran would push ahead with making its own enriched uranium and sanctions would act only as a spur to developing technology.

He also thanked Brazil and Turkey, which have negotiated with Iran in recent months, for voting against the sanctions, saying their support signaled the formation of a “new front of independent countries.”

The latest resolution received the least support of four meted out against Iran since 2006.

A senior German legislator said earlier this week Turkey and Brazil made a “big mistake” by voting against the sanctions since this may have encouraged Tehran to think it was not isolated.

Ahmadinejad slammed U.S. policy as deceitful and misguided and said the country’s leader was naive about foreign affairs.

“Maybe he is very immature. I think Mr (Barack) Obama does not know the world very well,” he said, adding that the U.S. president was particularly in the dark about Iran and its people.

The U.S. Congress is expected to pass additional sanctions on Iran, possibly as early as this month, and European leaders may agree next week on the need for further restrictions.

(Additional reporting by Farah Master; Editing by Ben Blanchard)

China urges region to step back from Korea clash

China deflected pressure to censure North Korea at a regional summit on Sunday, instead urging its neighbors to calm tensions over the sinking of a warship and avoid any clash that could shake Asia.

World | China | North Korea

Seoul and Tokyo blame North Korea, whose leader Kim Jong-il visited China earlier this month, of torpedoing South Korea’s Cheonan corvette in March, killing 46 sailors — the deadliest military incident since the Korean War.

China, which is North Korea’s biggest trade partner and which fought alongside the North in 1950-53 Korea War, has declined to publicly join international condemnation of Pyongyang, saying it is still assessing the evidence.

Chinese Premier Wen Jiabao kept to that stance at the two-day summit in Seogwipo, a honeymoon resort on South Korea’s Jeju island, which was originally meant to focus on regional economic integration.

“The pressing task now is to respond appropriately to the serious effects of the Cheonan incident, to steadily reduce tensions, and especially to avoid a clash,” Wen said, standing next to Japanese Prime Minister Yukio Hatoyama and South Korean President Lee Myung-bak at the end of the summit.

Wen did not mention North Korea by name, nor did he give any firm indication that China would accept any U.N. Security Council effort to condemn or sanction the North.

North Korea has repeatedly denied responsibility for the Cheonan incident. The official Korean Central News Agency said on Saturday the United States was blaming the North for the ship sinking in order to keep a U.S. Marine base in Japan and make China feel “awkward.”

South Korea last week announced a series of sanctions against its neighbor, including cutting trade, resuming propaganda broadcasts across the border, and launching naval exercises near the disputed Yellow Sea maritime border. It has also pledged to take its case to the U.N. Security Council.

GRAVE IMPLICATIONS

China and Japan are the world’s number two and three economies and, with South Korea, account for close to 20 percent of global economic output. Instability on the Korean peninsula could have grave implications for the global economy.

“I think China was cautious because it does not want North Korea to lash out,” Hatoyama told reporters at a separate briefing after the summit.

North Korea needed to be taught a lesson so it will mend its ways, but war is not an option, said South Korean President Lee.

“We are not afraid of war, nor do we want one,” he told Wen and Hatoyama, according to Lee’s office. “We have no intention of fighting a war.”

South Korea’s Lee indicated that he expected China to back a U.N. Security Council response to the sinking. “China and Japan have very important roles to play in the international community and I fully expect them to have wisdom on this issue,” he said.

As a permanent member of the U.N. Security Council, China has the power to veto any proposed resolution or statement.

“With regard to the Cheonan, China seems confident that tensions will eventually diminish,” wrote Stephanie Kleine-Ahlbrandt, the North East Asia Project Director for the International Crisis Group, a non-government advisory organization, in an emailed response to questions.

Hatoyama said Japan will back Seoul when it takes the North to the U.N. Security Council. But Pyongyang may not bow even if China goes along with such steps, said Kleine-Ahlbrandt.

“We have seen plenty of cases in which external pressure has not worked on North Korea,” she wrote. “It is, therefore, questionable whether further measures will have the desired effect in this situation.”

North Korea has warned of war on the Korean peninsula if Seoul imposes sanctions, calling the South Korean government “military gangsters, seized by fever for a war.”

(Additional reporting by Yoko Nishikawa in Seogwipo, Lucy Hornby in Beijing; Editing by Bill Tarrant)

BRIC signs pact to facilitate cooperation between development banks

Brasilia (Brazil), Apr.16 (ANI): Brazil’s President Luiz Inacio Lula da Silva, Russian President Dmitry Medvedev, Indian Prime Minister Manmohan Singh and Chinese President Hu Jintao on Thursday witnessed the signing of a pact that will facilitate cooperation between development banks of the four countries.

Brazilian National Development Bank President Luciano Coutinho signed a memorandum of cooperation with his other three counterparts from Russia, India and China.

The agreement seeks to establish mechanisms to enhance trade and economic relations between BRIC countries.It also includes the possibility of co-financing projects of common interest in areas such as infrastructure, energy, industry, high technology and export.

At the end of the summit, BRIC leaders signed a joint declaration outlining their common vision on global issues, including:

The need for reform in the United Nations to make the institution more efficient and representative, in order to better address global challenges.

The need to join economic efforts and adopt sustainable fiscal policies to ensure a full recovery from the global financial crisis and long-term economic growth.

“We are confident that the unity we achieved here will contribute to the construction of a space for dialogue and consultation. Brazil, Russia, India and China have a key role to play in the establishment of a new international order that is more representative, fairer and safer,” said Brazilian President Lula.

Chinese President Hu Jintao said the meeting was fruitful,and added that the debate not only reflects the collective interests of the group, but of all countries of the world.

China will host the third BRIC summit at a date yet to be defined.

Russia intends to deepen the dialogue on tackling global challenges such as terrorism and organized crime.

“The BRIC format allows us complete action,” said Russian President Dmitry Medvedev.

Prime Minister Manmohan Singh reaffirmed the need for continued cooperation, reiterating that the four countries can make considerable contribution to global prosperity.

“The global financial crisis has given new relevance to the BRIC countries,” he added.

In the period from 2003 to 2007, the BRIC countries accounted for 65 percent of the world’s GDP growth. In 2009, the GDP of BRIC countries (by purchasing power parity) reached 16.3 trillion USD, corresponding to 23.4 percent of the global economy. In the period 2003-2008, there was an increase of 382 percent in the volume of trade between Brazil and the other BRIC countries from 10.7 billion USD in 2003 to 51.7 billion USD in 2008.

The summit was originally scheduled for Friday (April 16), but was advanced by a day in order to accommodate President Hu Jintao’s decision to shorten his trip to return hom to take control of the decision-making process for the earthquake that hit his country earlier this week. By Ravinder Singh Robin (ANI)

Briefly World

China quake toll surges past 1000

Beijing: The death toll crossed the 1000-mark in China’s quake-hit Qinghai province, where rescuers raced against time to save hundreds of people buried under the rubble, three days after the 7.1 magnitude temblor flattened the remote northwestern region. The death toll had climbed to 1,144 and another 417 remained missing on Friday evening, state-run Xinhua news agency said.

Lanka govt may convict Fonseka to deny seat

Colombo: Detained former Sri Lankan Army Chief Sarath Fonseka may be convicted by early next week to prevent him from taking oath as a lawmaker, his party alleged on Friday. “We strongly suspect a court martial convened on Monday would convict him by Thursday to prevent his entry into Parliament to take oath,” Anura Kumara Dissanayake, a senior leader of the Marxist JVP, said here.

Ousted Kyrgyz leader’s kin hand over weapons

TEYIT: Relatives of Kyrgyzstan’s ousted President were submitting weapons to officials on Friday in their home village, a day after the President fled the country. While the move appeared to reduce the likelihood of resistance by Kurmanbek Bakiyev backers, Kyrgyzstan’s interim authorities were still searching for one of his brothers after issuing a warrant for his arrest, and it was unclear if Zhanybek Bakiyev would submit peacefully.

Obama orders hospitals to allow gays visitation

WASHINGTON: US President Barack Obama directed all hospitals that participate in Medicare and Medicaid to allow visitation rights for gay, lesbian and transgender couples. “There are few moments in our lives that call for greater compassion and companionship than when a loved one is admitted to the hospital. In these hours of need and moments of pain and anxiety, all of us would hope to have a hand to hold, a shoulder on which to lean — a loved one to be there for us, as we would be there for them,” Obama said in his memorandum

Olmert faces corruption charges in property deal

Jerusalem: Close on the heels of three suspected cases of graft, which cost him the premiership, former Israeli Prime Minister Ehud Olmert is now allegedly involved in what is being dubbed as the “biggest corruption scandal” in the history of Israel. The Rishon Letzion Magistrate’s Court has lifted its gag order on the identity of the senior official suspected of taking bribes being described as the “Holyland affair” after the name of the highrise buildings, revealing the suspect to be Olmert, who served as mayor of Jerusalem from 1993-2003, Ha’aretz reported on Friday.

Nepal to accept 3,000 Maoist combatants

Kathmandu: The Nepal government on Friday said that it will accept only 3,000 of the 19,000-strong Maoist combatants in various security agencies. All major political parties other than the Unified CPN-Maoist have agreed in principle on the integration of the former rebels at a meeting chaired by Prime Minister Madhav Kumar Nepal. Prachanda, who abstained from the meeting, rejected the offer saying “all 19,000 Maoist combatants should get the chance to be integrated into the Army”.

Factbox: Key risks to watch in Kyrgyzstan turmoil

(Reuters) – Following last week’s uprising in Kyrgyzstan, the main questions remain whether violence rises and how the United States, Russia and China react to turmoil in a country where all have interests.

World | China | Russia | Kyrgyzstan

The United States leases the Manas airbase to support NATO troops in Afghanistan. Russia also leases a base, while China has a long border with Kyrgyzstan and will be concerned for the growing number of Chinese residents and businesses there.

A Russian official has said Moscow alone should have a base in Kyrgyzstan.

Domestic strains appear to be the main reason for the uprising.

VIOLENCE OR STABILISATION?

Around 80 people were killed in the uprising that forced President Kurmanbek Bakiyev to flee to his southern stronghold, and Bakiyev is now hinting he may attempt to go into exile.

The new leadership, led by former opposition leader Roza Otunbayeva, looks to be in control of the security forces, some of whom fired on opposition demonstrators last week.

The self-proclaimed government at first offered Bakiyev safe passage abroad should he resign but on Monday said it was planning a special operation against him after he warned that any attempt to seize him would lead to bloodshed. It now says it wants to put him on trial.

However, on Tuesday Bakiyev hinted he could leave the country if the interim government guarantee his safety and that of his family.

What to watch:

– Does Bakiyev yield, or does the self-proclaimed government move against him? Does he have sufficient support to attack in Bishkek or control areas in the south where he has his power base and will hold rallies this week? So far, outside powers look to be abandoning him.

– What happens with the security forces? So far, they look to have switched loyalty to the new leadership. Is this the case across the country, particularly in the south? What happens to commanders involved in shooting opposition demonstrators?

– Does looting continue and is it put down? So far, mining businesses and the minority Jewish community have been targeted. Does it target Chinese businesses in the capital, as some previous violence has? If so, how would China react?

– The Ferghana Valley in the south, where Bakiyev has his power base, has been the scene of ethnic violence in the past, and there are some signs that tension surrounding the ethnic Uzbek minority may not be far below the surface.

SUPERPOWER POLITICS

The United States and Russia are at loggerheads, although neither publicly acknowledges this.

Washington’s priority will be keeping its Manas base open while a Russian official with President Dmitry Medvedev’s delegation said last week Moscow wanted it closed.

A senior White House adviser on Russia told reporters in Prague: “This is not some anti-American coup. That we know for sure, and this is not a sponsored-by-the-Russians coup.”

Prime Minister Vladimir Putin has denied Russia played a part in the turmoil, but a Kyrgyz opposition leader, Omurbek Takebayev, said: “Russia played its role in ousting Bakiyev.”

So far Russia is the only country to recognize the interim government officially — although Medvedev warns the country is on the brink of civil war.

On Wednesday, a visiting U.S. diplomat said Washington was willing to help the new rulers, putting additional pressure on Bakiyev to go into exile.

Russian Prime Minister Vladimir Putin approved a $50 million aid and loan package for Kyrgyzstan hours later.

What to watch:

– How overt is Russian support for the self-proclaimed government, not to mention pressure to close the base? Does Russia offer military support?

– Does the uprising worsen broader Russia-U.S. relations just as Washington hoped they were improving?

– Do other countries — particularly the United States and China — ultimately recognize the self-proclaimed government or continue to support the ousted leadership?

– How does China react? Analysts say it had lent money to the ousted government. Does it shift to the new rulers, perhaps sweetening relations with a new loan, or support Bakiyev tacitly or overtly? Does it make any comment on the U.S. base?

AFGHANISTAN WAR

The United States has cut back flights through Manas, which officials it has been central to the war effort in Afghanistan, allowing round-the-clock combat airlift, airdrop, medical evacuation and refueling.

Pentagon officials say they have other options to Manas, although they are more expensive, and the base is not in itself essential.

U.S. officials say only around 20 percent of their supplies into Afghanistan go by air, with 30 percent transported overland through former Soviet states and 50 percent by road through Pakistan, a route which is vulnerable to attack on both sides of the border.

What to watch:

– What happens to the base? The new rulers talk of shortening of the five-year lease rather than outright immediate U.S. departure. Is it able to operate fully?

– Does the dispute prompt Washington to rethink its strategy of relying heavily on transport through the Russian sphere of influence?

ECONOMY AND INVESTMENT

Kyrgyzstan’s economic problems are seen as a big factor in the uprising. Recent energy tariff increases have been unpopular and many people are angry about alleged government corruption and recent privatization deals. The self-proclaimed government says it badly needs financial aid.

As much as 40 percent of gross domestic product is estimated to come from remittances from Kyrgyz workers in Russia, Russia’s Uralsib says.

Foreign investors are mainly Russian and Chinese, with little Western interest outside the small gold mining sector. Canadian mining company Centerra Gold and London-listed Chaarat Gold Holdings Ltd, both of which operate in the country, have seen their shares fall.

South African gold miner Gold Fields said groups of villagers had seized one of its camps, one of a series of attacks and looting episodes against businesses.

Kyrgyzstan has no significant oil and gas reserves, although Russia’s Gazprom is involved in exploration.

What to watch:

– How long does the crisis last? Analysts say there is already little Western interest in investing, but that buying insurance at present would probably be impossible, potentially prompting delays in any planned ventures. Does looting continue or do the police step in?

– Does Russia or someone else provide financial aid, or does the U.S. agree to pay more for its base?

– Most analysts say the uprising does not mean other central Asian states are less stable, but might investors view events as a sign of heightened regional risk and charge higher premiums for investing in Kazakhstan, Uzbekistan and elsewhere? (Editing by Sonya Hepinstall)

China buys air defense systems from Russia

(Reuters) – Russia has delivered 15 batteries of S-300 anti-aircraft missiles to China, Interfax news agency reported on Friday, under a contract analysts said could be worth as much as $2.25 billion.

World | China | Russia

China is a major buyer of Russian weapons, and the two countries say they are trying to forge a strategic partnership, though senior Russian officials are privately concerned about an increasingly assertive China.

Russia has delivered 15 S-300 batteries to China, Interfax news agency quoted Igor Ashurbeili, director general of Almaz Antei which makes the missiles, as saying.

“We have implemented a contract to deliver to China the newest system S-300,” Ashurbeili said. He gave no details about the value of the deal. A spokesman for the plant was not immediately available for comment.

In Russia’s armed forces, an S-300 battery normally consists of four truck-mounted installations, each with four missiles held in metal tubes.

Analysts said the contracts to deliver the S-300 to China were signed in the mid-2000s and that each battery usually costs about $120-$150 million. That indicates the value of the Chinese contract was about $1.80-$2.25 billion.

“The price for one S-300 battery varies between about $120 million and $150 million,” said Konstantin Makiyenko, deputy head at the Moscow-based CAST defense think tank.

MORE ADVANCED SYSTEM

The S-300, known in the West as the SA-20, can shoot down cruise missiles and aircraft. The missiles have a range of 150 km (90 miles) or more and travel at over two km per second.

Russian arms exports rose to a post-Soviet record of $8.5 billion last year, with Algeria, India and China accounting for two thirds of deliveries. Syria, Venezuela, Malaysia and Vietnam accounted for another 20 percent of deliveries.

Moscow has said it plans to fulfill a contract to supply the S-300, nicknamed “the favorite” in Russia, to Iran, unnerving Israel and the United States.

The possible sale to Tehran of the S-300, which could protect Iran’s nuclear facilities against air strikes, has become a sensitive issue in Russia’s relations with Israel.

Russia has a more advanced air defense system, known as the S-400 “Triumph,” and Ashurbeili said the country’s armed forces were expected to receive the third battery of these “any day from now.”

A senior Russian general said last year that Moscow was now developing a fifth-generation, surface-to-air missile, the S-500, which would be able to implement the tasks of both air and space defense.

Officials have said that the new system would be capable of engaging ballistic hypersonic targets flying at a speed of 5 km (3 miles) per second.

(Editing by Diana Abdallah)

Chinese mine flood relatives fear toll cover-up

(Reuters) – Families and survivors of a flood feared to be one of China’s worst mine accidents in recent years say officials are covering up the true number of people trapped underground and failing in rescue efforts.

World | China

The local government has not published the names of the 153 miners it says were unable to escape when water surged into the pit on Sunday afternoon, prompting Vice-Premier Zhang Dejiang to demand a list of potential victims, local media reported.

“Is 153 the exact number?” Zhang, sent to direct rescue efforts shortly after the accident, was quoted asking mine officials in a conference call.

“I don’t think the suspicion from the public is unreasonable,” he added, according to the Beijing News.

At the mine itself relatives waiting for news of their fathers, sons and brothers, and survivors keen to help out with rescue efforts all told Reuters the official toll was too low.

“We sent 10 tramcars down to the pit before the flooding and each car usually carries 44 miners and a driver,” a tramcar driver who was working on the day of the accident said.

“Only one car came back up the shaft, plus a few dozen miners who escaped on foot,” he said, suggesting nearly 450 people could have been underground at the time of the flood.

Officials say 261 people were working in the unfinished Wangjialing mine, in northern Shanxi province, and 108 escaped. Even those who do not question the total number underground say

there may be more than 153 still trapped.

“At least 200 people are trapped,” said a mine worker surnamed Li, unwilling to give his full name because of official pressure not to speak to foreign media.

“I was working in the checkpoint at the entry of the pit, so I’m quite sure about how many people had gone underground.”

A Shanxi government official said they had heard there were a lot of suspicions, but insisted the number was accurate.

“We have checked this many times, so it should be the exact number,” said the official from the province’s foreign affairs office, who gave only his surname, Cao, and said he did not know why names were not being released.

SURVIVAL HOPES?

Some miners were working on platforms above current water levels and may have survived, the official Xinhua agency said.

Sounds from the pit, which may have been someone pounding on the pipelines, were heard on Friday morning, CCTV news reported. One of the rescue workers told Reuters they had found a piece of wire tied onto a pipeline sent into the flooded zone.

But five days of rescue efforts have reduced water levels barely a meter, the Xinhua report added.

“The pipelines are too thin to pump water fast enough,” the daughter of a trapped miner told Reuters, requesting anonymity.

“My father will not be killed by the flooding, but by these rescuers,” she added.

China has ordered the consolidation or takeover of many private mines in order to improve oversight and safety.

It credits the shutdown of many of the most dangerous private mines with helping to reduce the death toll in the coal industry to about 2,600 last year from over 3,000 the year before.

But the deadliest accidents are not limited to private firms. The Wangjialing mine was a high-profile project belonging to a joint venture between China National Coal Group and Shanxi Coking Coal Group, two of China’s larger state-owned firms.

Relatives and some Chinese media have blamed the firms for ignoring safety requirements in their push to start operations.

Miners found water in the pit as early as three days before the accident, but the managers just said: “How can you be afraid of a little bit of water?” the worker surnamed Li said.

“They did not treat migrant workers as human beings,” he added.

(Writing by Yu Le and Emma Graham-Harrison; Editing by Benjamin Kang Lim and Jerry Norton)

China buys air defense systems from Russia

(Reuters) – Russia has delivered 15 batteries of S-300 anti-aircraft missiles to China, Interfax news agency reported on Friday, under a contract analysts said could be worth as much as $2.25 billion.

World | China | Russia

China is a major buyer of Russian weapons, and the two countries say they are trying to forge a strategic partnership, though senior Russian officials are privately concerned about an increasingly assertive China.

Russia has delivered 15 S-300 batteries to China, Interfax news agency quoted Igor Ashurbeili, director general of Almaz Antei which makes the missiles, as saying.

“We have implemented a contract to deliver to China the newest system S-300,” Ashurbeili said. He gave no details about the value of the deal. A spokesman for the plant was not immediately available for comment.

In Russia’s armed forces, an S-300 battery normally consists of four truck-mounted installations, each with four missiles held in metal tubes.

Analysts said the contracts to deliver the S-300 to China were signed in the mid-2000s and that each battery usually costs about $120-$150 million. That indicates the value of the Chinese contract was about $1.80-$2.25 billion.

“The price for one S-300 battery varies between about $120 million and $150 million,” said Konstantin Makiyenko, deputy head at the Moscow-based CAST defense think tank.

MORE ADVANCED SYSTEM

The S-300, known in the West as the SA-20, can shoot down cruise missiles and aircraft. The missiles have a range of 150 km (90 miles) or more and travel at over two km per second.

Russian arms exports rose to a post-Soviet record of $8.5 billion last year, with Algeria, India and China accounting for two thirds of deliveries. Syria, Venezuela, Malaysia and Vietnam accounted for another 20 percent of deliveries.

Moscow has said it plans to fulfill a contract to supply the S-300, nicknamed “the favorite” in Russia, to Iran, unnerving Israel and the United States.

The possible sale to Tehran of the S-300, which could protect Iran’s nuclear facilities against air strikes, has become a sensitive issue in Russia’s relations with Israel.

Russia has a more advanced air defense system, known as the S-400 “Triumph,” and Ashurbeili said the country’s armed forces were expected to receive the third battery of these “any day from now.”

A senior Russian general said last year that Moscow was now developing a fifth-generation, surface-to-air missile, the S-500, which would be able to implement the tasks of both air and space defense.

Officials have said that the new system would be capable of engaging ballistic hypersonic targets flying at a speed of 5 km (3 miles) per second.

(Editing by Diana Abdallah)

Chinese mine flood relatives fear toll cover-up

(Reuters) – Families and survivors of a flood feared to be one of China’s worst mine accidents in recent years say officials are covering up the true number of people trapped underground and failing in rescue efforts.

World | China

The local government has not published the names of the 153 miners it says were unable to escape when water surged into the pit on Sunday afternoon, prompting Vice-Premier Zhang Dejiang to demand a list of potential victims, local media reported.

“Is 153 the exact number?” Zhang, sent to direct rescue efforts shortly after the accident, was quoted asking mine officials in a conference call.

“I don’t think the suspicion from the public is unreasonable,” he added, according to the Beijing News.

At the mine itself relatives waiting for news of their fathers, sons and brothers, and survivors keen to help out with rescue efforts all told Reuters the official toll was too low.

“We sent 10 tramcars down to the pit before the flooding and each car usually carries 44 miners and a driver,” a tramcar driver who was working on the day of the accident said.

“Only one car came back up the shaft, plus a few dozen miners who escaped on foot,” he said, suggesting nearly 450 people could have been underground at the time of the flood.

Officials say 261 people were working in the unfinished Wangjialing mine, in northern Shanxi province, and 108 escaped. Even those who do not question the total number underground say

there may be more than 153 still trapped.

“At least 200 people are trapped,” said a mine worker surnamed Li, unwilling to give his full name because of official pressure not to speak to foreign media.

“I was working in the checkpoint at the entry of the pit, so I’m quite sure about how many people had gone underground.”

A Shanxi government official said they had heard there were a lot of suspicions, but insisted the number was accurate.

“We have checked this many times, so it should be the exact number,” said the official from the province’s foreign affairs office, who gave only his surname, Cao, and said he did not know why names were not being released.

SURVIVAL HOPES?

Some miners were working on platforms above current water levels and may have survived, the official Xinhua agency said.

Sounds from the pit, which may have been someone pounding on the pipelines, were heard on Friday morning, CCTV news reported. One of the rescue workers told Reuters they had found a piece of wire tied onto a pipeline sent into the flooded zone.

But five days of rescue efforts have reduced water levels barely a meter, the Xinhua report added.

“The pipelines are too thin to pump water fast enough,” the daughter of a trapped miner told Reuters, requesting anonymity.

“My father will not be killed by the flooding, but by these rescuers,” she added.

China has ordered the consolidation or takeover of many private mines in order to improve oversight and safety.

It credits the shutdown of many of the most dangerous private mines with helping to reduce the death toll in the coal industry to about 2,600 last year from over 3,000 the year before.

But the deadliest accidents are not limited to private firms. The Wangjialing mine was a high-profile project belonging to a joint venture between China National Coal Group and Shanxi Coking Coal Group, two of China’s larger state-owned firms.

Relatives and some Chinese media have blamed the firms for ignoring safety requirements in their push to start operations.

Miners found water in the pit as early as three days before the accident, but the managers just said: “How can you be afraid of a little bit of water?” the worker surnamed Li said.

“They did not treat migrant workers as human beings,” he added.

(Writing by Yu Le and Emma Graham-Harrison; Editing by Benjamin Kang Lim and Jerry Norton)

North Korean cargo train sparks Kim trip speculation

(Reuters) – The train thought to be carrying Kim Jong-il to China appears to have be a cargo freighter on a journey unrelated to the reclusive North Korean leader, witnesses at the border said on Saturday.

World | China | North Korea

South Korea’s Yonhap news sparked speculation that Kim may be heading to China when it said one of the special trains Kim uses on rare trips outside his hermit state was seen in the Chinese border city of Dandong.

Witnesses in Dandong who saw the train cross in the pre-dawn hours and video footage shot by Reuters TV indicates it was a freighter and not Kim’s armored train.

“It was a regular cargo train,” one witness said.

South Korean officials said this week a trip was imminent, with analysts saying a visit would help revive dormant international talks hosted by Beijing on ending Pyongyang’s nuclear ambitions.

The North’s official news agency said in a report on Saturday that Kim had watched a musical performance in Pyongyang. It did not give a date for when he attended the event.

Kim’s few trips to China have often led to moves that decrease the security threat Pyongyang poses to the economically vibrant region.

Kim’s trips abroad are usually shrouded in secrecy and his state’s official media does not report on them until his journey is over and he is safely back in Pyongyang.

The visit would be the first since January 2006 when Kim toured China’s commercial centers and his first trip abroad since his recovery from a suspected stroke in 2008.

The North has come under pressure to return to six-country nuclear talks due to U.N. sanctions imposed after a May 2009 atomic test. The sanctions have dealt a blow to its wobbly economy, and a botched currency move late last year has sparked inflation and rare civil unrest.

(Additional reporting by Kim Yeon-hee in Seoul; Writing by Jon Herskovitz in Seoul)

China to discuss Iran sanctions; Hu to visit U.S.

(Reuters) – China has agreed to serious negotiations with Western powers about imposing new sanctions on Iran and President Hu Jintao will attend a multi-nation summit on nuclear security in Washington this month, officials said.

World | China

The two moves should dilute tensions between Beijing and Washington after months of quarrels over the yuan currency, Internet censorship, Tibet and U.S. weapons sales to Taiwan.

The agreement to discuss sanctions marked a significant shift by China after months of fending off Western nations’ demands for concerted pressure on Tehran, which they accuse of seeking the means to assemble nuclear weapons.

Beijing has also been coy up to now about whether Hu will attend the April 12-13 nuclear summit in Washington, which would come days before the U.S. Treasury is slated to release a report that could accuse China of manipulating its currency to give its exporters a competitive advantage.

Chinese Foreign Ministry spokesman Qin Gang told a news conference on Thursday that Hu would attend the Washington meeting.

The United States’ ambassador to the United Nations, Susan Rice, said on Wednesday in New York that her government, Britain, France, Russia and Germany had agreed with China to begin discussing a proposed U.N. Security Council resolution with new sanctions on Iran.

“This is progress, but the negotiations have yet to begin in earnest,” Rice said in an interview on CNN.

Foreign Ministry spokesman Qin would not discuss specifics of a resolution and stressed China’s continued hopes for diplomatic compromise over Iran.

“China is highly concerned about the current situation and will strengthen cooperation with all parties,” he said.

RELUCTANT

China has long been reluctant to back new sanctions on Iran, a big supplier of oil for the growing Asian power.

Underscoring Beijing’s centrality in the accelerating negotiations, Iran’s chief nuclear negotiator Saeed Jalili arrived there on Thursday.

Jalili would meet Chinese Foreign Minister Yang Jiechi and Dai Bingguo, a senior Chinese diplomat who serves as a State Councillor advising leaders on foreign policy, said Qin.

“Sanctions now appear to be a foregone conclusion. The likelihood of the resolution passing in the Security Council is high,” said Jin Liangxiang, a Middle East specialist at the Shanghai Institute for International Studies.

As one of the five permanent members of the Security Council, China has the power to veto any resolution. But Beijing appears to be losing some patience with Iran.

Jin said the sanctions were likely to “hit decision-makers and interests in Iran,” but not seriously affect China’s economies and energy ties.

President Barack Obama said on Tuesday that he wants a new Iran sanctions resolution adopted within weeks.

Iran’s Foreign Ministry spokesman Ramin Mehmanparast said in Tehran on Thursday that past sanctions against his country have not worked, the official IRNA news agency reported.

He said other nations should not use “incorrect methods like pressuring and sanctioning.”

Guo Xiangang, a former Chinese diplomat to Tehran, said Beijing was likely to bow only so far to the Western demands for tough sanctions.

“I’d guess that China can accept something a bit harsher (than past sanctions on Iran), but not too harsh. It will remain principally a symbolic warning to Iran,” said Guo, who is now a vice president of the China Institute of International Studies, a government thinktank in Beijing.

He said Beijing would seek to ensure that any financial sanctions did not threaten to entangle its energy and investment deals with Iran.

(Additional reporting by Louis Charbonneau and Michelle Nichols at the United Nations; Parisa Hafezi in Tehran; Editing by Raju Gopalakrishnan)

Timeline: The obstacle course for U.S.-China ties in 2010

(Reuters) – China said on Thursday that its President Hu Jintao will go to a nuclear security summit in Washington on April 12-13, ending uncertainty about his attendance after a bout of tensions between the two powers.

World | China

Both governments are seeking to cool those tensions. Here is a timeline of significant dates in relations this year:

January 12 – Google threatens to pull out of China over censorship and hacking attacks from within the country.

January 21 – U.S. Secretary of State Hillary Clinton delivers speech calling for Internet freedoms, names China as a country that has stepped up censorship of the web.

January 29 – Obama administration notifies U.S. Congress of proposed arms sales to Taiwan worth $6.4 billion. China condemns the sales to the island, which it considers its territory, and threatens sanctions on companies involved.

February 17 – U.S. aircraft carrier USS Nimitz visits Hong Hong, the self-administered territory under Chinese rule, despite a Chinese pledge to curtail military exchanges with the United States after its announced arms sales to Taiwan.

February 18 – President Obama meets exiled Tibetan Buddhist leader, the Dalai Lama, at the White House. China reviles the Dalai Lama as a “separatist” for advocating self-rule for his homeland and condemns the meeting.

March 2-4 – U.S. Deputy Secretary of State James Steinberg and Jeffrey Bader, Senior Director for the U.S. National Security Council for Asian Affairs, visit Beijing for talks, seeking to overcome tensions.

March 15 – One hundred and thirty members of U.S. Congress issue a letter demanding more pressure on China to let its yuan currency appreciate. The next day, a bipartisan bill on the issue goes before the Senate.

March 22 – Google shuts its China-based search service Google.cn and begins redirecting mainland Web searchers to a portal in Hong Kong, shifting responsibility for censoring Google for Chinese users from the company to the Chinese government. China criticizes Google but does not entirely shut off the Hong Kong site.

March 31 – China agrees to serious negotiations with Washington and other Western powers about proposed new United Nations Security Council-backed sanctions on Iran, after months of stressing its reluctance to back sanctions. China has the power to veto any Security Council resolution.

April 12-13 – President Obama hosts a multi-nation nuclear security summit in Washington D.C. Chinese President Hu Jintao will attend, opening an opportunity for a bilateral meeting between the two leaders.

April 15 – U.S. Treasury due to release latest six-monthly report on whether China and other countries are manipulating their currencies for trade advantage. In the past, release of the report has been sometimes postponed.

April 15-16 – Chinese President Hu due to attend “BRIC” summit in Brazil, bringing together the leaders of Brazil, Russia, India and China for their second such meeting.

May 15-25 – U.S. Secretary of Commerce Gary Locke leads trade mission to Hong Kong, China and Indonesia, promoting deals with American companies in clean energy.

Late-May – Senior officials from the United States and China due to meet in Beijing for Strategic and Economic Dialogue, an annual meeting to discuss broad economic, foreign policy and security concerns. The U.S. side is likely to be led by Secretary of State Hillary Clinton and Treasury Secretary Timothy Geithner.

June 26-27 – Meeting of G20 leaders of major rich and developing economies scheduled in Toronto, Canada, giving Presidents Hu and Obama an opportunity to meet.

Later in the year – The two countries are preparing for their Joint Commission on Commerce and Trade, a regular meeting that focuses on economic ties. Last year’s was held in late October in the eastern Chinese city of Hangzhou.

November 2 – Mid-term elections for U.S. Congress. With economic concerns uppermost in many voters’ minds, trade and currency tensions with China may become a electoral issue.

November 13-14 – Asia-Pacific Economic Cooperation summit, to be held in Yokohama, Japan, presents another opportunity for the two leaders to meet.

November – South Korea scheduled to host second summit for the year of the G20 group of major rich and developing economies, where Hu and Obama will have a further chance to meet. The summit is likely to take place immediately before or after the APEC summit.

November-December – When President Obama visited China in November 2009, Chinese President Hu accepted his invitation to visit the United States in 2010. This would be a state visit separate from his attendance at the nuclear summit. No date has been set for the trip. One possibility is June, when Hu attends the G20 summit in Canada, but a date after the U.S. mid-term elections appears more likely.

(Reporting by Chris Buckley in Beijing; Jim Wolf, Doug Palmer and Paul Eckert in Washington; Ralph Jennings in Taipei)

China’s forced evictions cause instability

(Reuters) – China risks growing social instability and even violence if the government does not take effective action to address rising public anger about forced evictions and demolitions, a report released Monday said.

World | China

The Chinese Urgent Action Working Group, a China-based rights lobby, said the country’s rapid economic growth over the past few years had produced “a pandemic of illegal demolition,” with corrupt officials often colluding with developers.

“This increase in property rights violations, predominantly related to forced evictions and demolitions, is one of the leading causes of instability in China today,” it said.

The discontent generated by demolitions is huge.

Rights groups have repeatedly criticized the government for not doing enough to prevent forced evictions, especially when people are made to make way for large-scale events like the 2008 Beijing Olympics and this year’s Shanghai World Expo.

The government has strongly denied such accusations in connection with the Olympics and Expo but, in a bid to ease tensions, earlier this year it released a draft replacement for current regulations governing evictions.

Property disputes in a country where the government legally controls all land can lead to rowdy protests, fights with police, imprisonment and even suicide.

The report documented a case in the eastern province of Shandong where it said thugs tormented villagers to get them to agree to give up their land for development, including blocking access to the village and attacking residents.

The police ignored calls for help, a local court found for the developers and the villagers’ homes ended up being demolished, it said.

Petitioners who manage to reach Beijing to press the central authorities for redress for such abuses in almost all cases get nowhere, the report said.

“In the rare cases where an official in Beijing agrees with the petitioner and asks the local government to take action, the local government often fails to respond, despite being legally required to do so,” it said.

The report said the new demolition rules, which the government has yet to put into effect formally, were a step in the right direction but still had problems.

“A positive sign for the future is that the promulgation of the new demolition regulations and the debate surrounding their contents has brought the issue back onto the public and government agenda,” it said.

“What is needed is a fundamental re-think of government policy on property rights, public housing and the role of the state,” the report added.

“If the current system is not amended relatively promptly and properly … the level of violent conflicts is certain to increase,” it said.

(Reporting by Ben Blanchard; Editing by Paul Tait)

Well-known missing Chinese rights lawyer alive

(Reuters) – China’s best known rights lawyer, missing for a year and feared dead, appears to be alive and is staying at a Buddhist landmark in north China after speaking to Reuters reporters and another dissident lawyer on Sunday.

World | China

Gao Zhisheng, a Christian lawyer who helped defend members of China’s banned Falun Gong spiritual group, was abducted from his relative’s home in Shanxi province on Feb 4, 2009. Authorities have failed to provide consistent information on his fate.

Gao told Reuters by telephone on Sunday that he had been released about half a year ago and was in Wutai mountain, a sacred Buddhist landmark in coal-rich Shanxi province.

“I want to live a quiet life for a while,” said Gao, who was able to answer questions about past conversations and the venue of previous meetings he had with a Reuters reporter.

Asked if he planned to join his family in the United States, Gao said: “It’s not that easy.”

He appeared to be under some sort of police surveillance and declined further comment.

Human rights lawyer Li Heping, who had a lot of contact with Gao before the latter was jailed, confirmed he spoke to Gao by phone on Sunday.

“It’s certainly him. I spoke to him over the phone. I could tell from the way he spoke and the way he spoke to me that it’s him,” Li said, adding that Gao would not speak much about his current circumstances.

Last month Dui Hua Foundation, a U.S.-based group which campaigns for the rights of Chinese prisoners, said it had been told by the Chinese embassy in Washington that Gao was working in Urumqi, capital of the remote, northwestern region of Xinjiang, and has been in contact with his wife and relatives in China.

At the time of Gao’s disappearance, his wife and children had already escaped from their home, ultimately arriving in Bangkok where they applied for asylum in the United States.

Gao’s family had feared he was dead, after a cryptic comment from police that he had “lost his way and gone missing” in September.

He was sentenced to four years in jail for subversion in 2006 but won a good behavior reprieve. He has, however, since been under constant police watch and periods of secretive detention, his wife, Geng He, told Reuters after her escape.

Gao had previously published instances when he was tortured while in detention. Self-educated, he had grown disenchanted with the Chinese system while representing Falun Gong practitioners and underground Christians.

In 2005, he wrote an open letter to China’s president and premier, calling for an end to the persecution of Falun Gong, which China regards as an “evil” cult.

(Reporting by Chris Buckley and Benjamin Kang Lim; Editing by Sugita Katyal)

China more concerned about Iran, wary on sanctions

China has become more concerned about international tensions over Iran’s nuclear program, but remains doubtful that sanctions can resolve the stand-off, the Chinese foreign minister said on Tuesday.

World | China

Foreign Minister Yang Jiechi was speaking after talks with visiting British Foreign Secretary (minister) David Miliband, where one of the key issues on the table was Iran.

Yang’s comments suggested that he had given little ground on Western calls that Beijing back proposed new sanctions over Tehran’s disputed nuclear activities, which China could block as a veto-wielding permanent member of the U.N. Security Council.

“Regarding the Iran nuclear issue, I wish to point out that this issue is the subject of widespread attention in the international community,” Yang told reporters.

“China has become more concerned about the current situation,” he said, adding that Beijing was still seeking a diplomatic solution.

Western powers say Iran wants the means to make nuclear weapons and has violated non-proliferation safeguards. German Chancellor Angela Merkel said on Monday that the time had come for new sanctions.

Iran says its uranium enrichment activities are to make fuel for planned nuclear power plants.

China has resisted calls to tighten the economic screws on one of its major suppliers of oil, and Yang repeated Beijing’s long-standing position that sanctions could not resolve the tensions. But he stopped short of outright opposition.

“I have said before that sanctions do not provide a fundamental solution to the Iranian nuclear issue, ultimately this issue has to be resolved through peaceful negotiations,” he said.

“We will continue to make active efforts to bring about a diplomatic solution to the Iran nuclear issue.”

“SHARED GOAL”

A draft Western proposal calls for restricting more Iranian banks abroad, but does not press for sanctions against Iran’s oil and gas industries.

At the news briefing, Miliband described tackling Iran’s nuclear program as a “test for all of us” and noted that China had registered its increasing concern.

“We have a shared goal in ensuring that Iran lives by its commitments under the non-proliferation treaty, and we are going to work very closely together to achieve it,” he added.

China is one of the five permanent members of the U.N. Security Council, each holding the power to veto resolutions. It backed previous Iran resolutions, after working to cut measures that could threaten flows of oil and Chinese investments.

In 2009, Iran was China’s third biggest source of imported crude oil, behind Angola and top supplier Saudi Arabia. Iran supplied China with 23.1 million metric tonnes of crude, or 11.4 percent of China’s total crude imports.

While Beijing abstains from Security Council votes on decisions it dislikes, it is much less willing to use its veto and risk diplomatic isolation, especially if fellow Security Council member Russia backs a resolution.

(Reporting by Emma Graham-Harrison; Editing by Alex Richardson)

Britain looks to China to pressure Iran

(Reuters) – China and Britain agree on pressing Iran about its nuclear activities while seeking engagement, British Foreign Secretary David Miliband said on Monday at the start of a visit to China that is likely to focus on the dispute.

World | China

Miliband said the two powers — both permanent members of the U.N. Security Council — shared an interest in ensuring Tehran abides by Security Council resolutions seeking to curb the “real threat” of its nuclear activities.

“Britain and China have not only agreed on the goal that Iran should respect the Nuclear Non-Proliferation Treaty, but also respect that we need to keep a combination of engagement and pressure,” Miliband told reporters at the Shanghai World Expo site, shortly before flying to Beijing.

The Nuclear Non-Proliferation Treaty is the pact seeking to prevent the spread of nuclear weapons beyond the formally recognized nuclear-armed states, including China and Britain.

But despite Miliband’s upbeat comments, his talks in Beijing about Iran — one of China’s major oil suppliers — could be one of the most difficult parts of his three-day trip.

Western powers want China to approve a proposed U.N. resolution imposing new sanctions on Tehran, which they say is seeking the means to make nuclear weapons and has violated non-proliferation safeguards.

Beijing however has previously resisted calls for harsh sanctions against Iran. And as one of the five permanent members of the Security Council, it has the power to veto any resolution.

Miliband’s meetings in the Chinese capital include one with Premier Wen Jiabao, when they will discuss “how we can address the real threat that the Iranian nuclear program poses to international stability and security,” the foreign minister said during an afternoon visit to a training center for peacekeeping police outside Beijing.

Tehran denies that its nuclear program is aimed at developing weapons and says it wants to enrich uranium to power planned electricity plants.

GREATER OPENNESS

Miliband also urged China to do more to open its economy and improve intellectual property rights protections.

“Foreign investors seek transparency and fair competition so they can be confident in their investment,” Miliband said.

China and Britain have recently sparred over climate change negotiations and Beijing’s stance on human rights, after China executed a Briton for drug smuggling, although his family said there was convincing evidence that he was mentally ill.

“We don’t pretend to agree on everything,” said Miliband. “Our relationship is one of many layers and one of growing strength and growing engagement.”

(Editing by Emma Graham-Harrison)

China deserves more say in IMF, says Brown

London, April 2 (Xinhua) British Prime Minister Gordon Brown said Thursday that China deserves the right to demand more say and representation in the International Monetary Fund (IMF).

Brown told reporters after the G20 summit that China pledged to contribute $40 billion to the international financial institutions, while the European Union (EU) and Japan offered $100 billion respectively.

Brown stressed that China has the right to demand more representation in the International Monetary Fund and a time table has been set to make the change to this effect.

Calling it a ‘new era’ for global cooperation, Brown said countries will work together for a more sustainable, more open and fairer world.