Thursday, July 25, 2013

The Irrawaddy Magazine

The Irrawaddy Magazine

MPT, China Unicom Plan International Cable to Boost Internet Connectivity

Posted: 25 Jul 2013 06:29 AM PDT

A man surfs the web at an Internet cafe in Rangoon. (Photo: Reuters)

RANGOON — Myanmar Posts and Telecommunication and China Unicom have signed an agreement to build a new optical fiber cable that would connect Burma with China and international submarine communications networks, a senior official said on Thursday. The project would improve Internet connectivity in Burma.

The news comes amid an ongoing disruption that has severely slowed Internet connections in Burma in recent days.

On July 4, Burmese state-owned firm Myanmar Posts and Telecommunication (MPT) signed an agreement with Chinese government company China Unicom to develop the optical fiber cable, said Soe Thane, deputy general manager of the Ministry of Communications and Information Technology's work and inspection department.

"It is a cooperation agreement between Myanmar and China for Internet and mobile phone communication. MPT would be able to use of half of the cable's [communication] capacity," he told The Irrawaddy.

Soe Thane said the firms would both own half of the project, which is expected to be completed in 2014.

China Unicom is one of the world's biggest telecom companies with US$26 billion in annual revenues.

The approximately 1,500-km long cable will run from Muse, on the Burma-China border in Shan State, to Ngwe Saung Beach in the Irrawaddy Delta, from where it will connect to the submarine cable network SEA-ME-WE 5 in the Andaman Sea.

The underwater SEA-ME-WE 5 regional cable network is planned by a consortium of 18 telecom companies including Singtel, France Telecom, China Telecom and China Mobile. It would connect Southeast Asia, the Middle East and Western Europe.

During the past year, there have been media reports of a possible deal between Burma and China to develop an Internet cable that would connect both countries to the SEA-ME-WE 5 cable. In January, Mizzima reported that MPT and China Unicom signed an agreement for the project in September 2012. The cable's development would reportedly require a US$40 million investment.

Currently, Burma is connected to the SEA-ME-WE 3 submarine cable, while overland communications cables link it with networks in Bangladesh, Thailand and China.

A disruption occurred on Sunday with Burma's connection with the SEA-ME-WE 3 at a site located about 13 km off the Irrawaddy Delta's shore. The disruption is leading to serious delays in establishing Internet connections in the country.

Poor government planning and international sanctions have hampered the development of Burma's Internet infrastructure under the previous military government and Internet connectivity in Burma is among the worst in the region.

Last month, foreign telecom companies Ooredoo and Telenor won the bids for a government tender to develop Internet and mobile phone networks in Burma.

Soe Thane said the firms could pay for usage of the planned Burmese-Chinese optical fiber cable.

Ye Myat Thu, an IT specialist, said he welcomed the plans to develop a new fiber cable that would better connect Burma with international communications networks, adding however, that the government should consider whether it would want to work with China Unicom on the cable's development.

"Chinese [information] technology is considered of a lesser quality compared to American and Japanese technology," he said. "We should consider which firms are the best in building such underwater cables and what guarantees they can give the government regarding the cable's functioning."

Burma and China to Build on Strategic Military Relations

Posted: 25 Jul 2013 06:18 AM PDT

Burmese President Thein Sein, right, shakes hands with Gen Fan Changlong, deputy chairman of the Chinese Central Military Commission (CMC), in Naypyidaw on Tuesday. (Photo: President's Office / Facebook)

Burma and China will likely enhance military ties, according to state media reports.

Burma's President Thein Sein met on Tuesday with Gen Fan Changlong, deputy chairman of the Chinese Central Military Commission (CMC), at his residence in Naypyidaw, according to a report by the state-run Myanmar Radio and Television (MRTV) network. Their conversation included a discussion about enhancing relations between the two countries' armed forces and maintaining positive relations between governments, MRTV said.

The Burmese president also told the Chinese military leader that his administration would continue to promote warming relations with other countries in the region and in the West, the broadcaster added.

Snr-Gen Min Aung Hlaing, commander-in-chief of Burma's armed forces, also met with the CMC deputy chairman on Tuesday morning, prior to his meeting with the president, according to state-run newspapers.

The newspapers said Min Aung Hlaing told Fan Changlong that he supported the "One China" policy and that the Burmese army would maintain close relations with China for regional security and border stability. He reportedly added that the Burmese army would cooperate with the Chinese military to eliminate the narcotics trade.

Fan Changlong said China's government was paying attention to Burma's development and both armies would cooperate on proposed matters, according to the newspaper reports.

Meanwhile, China's state-run Xinhua news agency said the CMC deputy chairman's visit was part of an official trip to three countries, also including Thailand and Kazakhstan, with the aim of building strategic relations between the respective armies to maintain regional peace and stability.

Aung Kyaw Zaw, a Burma military and political watcher on the Burma-China border, told The Irrawaddy that he believed Fan Changlong also represented the Chinese Communist Party during his trip to Burma. He said Beijing's concerns over Burma's growing military ties with the United States and the United Kingdom could have motivated the visit.

"China is very much concerned about relations between the Burmese army and major international countries," he said. "They [the Chinese] are concerned about building up relations among those armies in the future. I also believe that on this trip, the CMC vice chairman will definitely discuss issues related to the Burma-China border-based armed ethnic United Wa State Army [UWSA]."

He added that after the 1988 pro-democracy protests in Burma, military relations with China increased due to arms embargoes and other sanctions imposed on the Burmese military regime by Western countries. Burma has purchased military weapons including jet fighters and tanks from China, he said, but has never properly learned military tactics from the East Asian giant.

The European Union continues to restrict arms sales to Burma, but Beijing may be concerned about the United Kingdom's plans to provide military training early next year to about 30 Burmese officers, with an aim to upgrade the Burmese army to meet international standards. The United Kingdom also plans to reappoint a military attaché in Burma.

Aung Lin Htut, a former major from Burma's military intelligence unit who now lives in the United States under political asylum, told The Irrawaddy that the British resumption of military relations with Burma also reflected US intentions, as the two Western powers are allies.

The United States and other Western countries have resumed long deadlocked relations with Burma in recognition of political and economic reforms under Thein Sein, who came to power in 2011.

In October 2012, a delegation of senior US military officials arrived in Burma for meetings with their Burmese counterparts. Observers from Burma's armed forces also joined the US-led military exercises in Thailand known as the Cobra Gold for the first time earlier this year.

US Funds Preservation of Historic Mandalay Monastery

Posted: 25 Jul 2013 04:17 AM PDT

The 19th century Shwe Nan Daw Kyaung Monastery in Mandalay. (Photo: Wikimedia Commons)

MANDALAY — The US government announced on Thursday that it is funding a two-year project that will help preserve Mandalay's Shwe Nan Daw Kyaung Monastery, one of the city's most historic buildings.

The US Ambassadors Fund for the Cultural Preservation will join hands with Burma's Ministry of Culture to preserve the 19th century, traditional teak wooden building, also known as the Golden Palace, which was constructed during the reign of King Mindon.

US Ambassador Derek Mitchell said the World Monument Fund based in Washington would implement the US$500,000 million project, adding that the project would also include training in preservation techniques for Burmese officials and craftsmen.

"We are now planning to give training and share experiences of modern techniques on how you preserve monuments. Not just in this place, but at other wooden monasteries around your country as well," Mitchell told reporters during a press conference in Mandalay.

"This is an original and still remarkable monument. We looked at a lot of different options, but we just felt that this is the good place to start," he said. "It represents not just a wooden monastery, but it has a connection to the imperial era and is worth preserving as it has deep historical relevance."

Deputy Minister of Culture Than Swe said Burmese traditional craftsmen would to work together with the US team to preserve the monastery.

"We will try our best to preserve this place and will make sure the preservation works will not affect the original wood carvings, the structure and its beauty. We are glad that our monument will have a chance to get better preservation," Than Swe said.

The Shwe Nan Daw Kyaung Monastery was originally covered with gold leaf and glass mosaics, and it is known for its intricate wood carvings on the walls and roofs that show Buddhist myths. It was built as a royal chamber for King Mindon and located within the Mandalay Palace complex.

Under his son, King Thibaw, the building was moved to a site outside of the Mandalay Palace moat and it was turned into a monastery. During World War II, aerial bombards destroyed most of the historic buildings inside the Mandalay Palace complex, leaving the Shwe Nan Daw Kyaung Monastery as the only remaining original structure from the 19th century palace.

As Burma's development speeds up, Mitchell said, it should ensure the preservation of such important historical buildings and other cultural heritage.

"Your neighboring countries, they have lost many of their historical monuments. But your country has preserved that and it's made something special about the country," he said. "You have to preserve the heritage with your heart and soul because if you lose your history, you lose a lot of yourselves."

Kachin Woman Wins Ramon Magsaysay Award

Posted: 25 Jul 2013 03:47 AM PDT

Lahpai Seng Raw is pictured with children in the Irrawaddy Delta during post-Cyclone Nargis rebuilding efforts in 2008. (Photo: John Cassils)

Lahpai Seng Raw, co-founder of Burma's largest civil society organization, is among five winners of the Philippines' prestigious Ramon Magsaysay Award this year.

The 64-year-old widow, whose Metta Development Foundation has worked to provide support to displaced people in Burma's conflict-torn areas and rehabilitate affected communities, told The Irrawaddy that she was deeply honored to receive the award, which many consider to be Asia's version of the Nobel Prize. Lahpai Seng Raw is the first ethnic Kachin to win the award, which was given in recognition of the more than two decades of social assistance given by the humanitarian.

The Ramon Magsaysay Award Foundation (RMAF) said in their announcement on Wednesday that Lahpai Seng Raw was recognized for "her quietly inspiring and inclusive leadership—in the midst of deep ethnic divides and prolonged armed conflict—to regenerate and empower damaged communities and to strengthen local NGOs in promoting a non-violent culture of participation and dialogue as the foundation for Myanmar's peaceful future."

In a telephone interview with The Irrawaddy on Thursday, Laphai Seng Raw said credit for her achievements was to be shared.

"I am deeply honored by this award, but also humbled in the knowledge that I owe it all to the host of wonderful friends, colleagues and partners at home and abroad, who have sustained me in my work with their wise counsel, help and encouragement."

Laphai Seng Raw is one of four female founders, along with one other Kachin woman and two ethnic Karen women, who established the Metta Development Foundation in 1997 to support displaced persons in areas of Burma where ceasefire agreements had been reached. The RMAF award winner said the recognition was due to the team effort of her foundation.

"So I accept this award not as a personal honor, but as a celebration of our collective achievement," she said.

Over the last 15 years, the Metta Development Foundation has joined hands with many of Burma's ethnic minorities, including the Karen, Kachin, Shan and Mon. It has provided assistance to the displaced and those otherwise affected by the "man-created disasters in Burma's ethnic areas," a mission it expanded in 2004 to include those affected by natural disasters.

Laphai Seng Raw added that "the award highlights that there is much to be done for the people along with the changes in the country's transition" toward democracy.

The awardee said she would continue the work that her foundation has been doing, although she handed over leadership of the organization to a successor two years ago.

Born in the Kachin State capital of Myitkyina and a graduate of Rangoon University, Laphai Seng Raw was a stay-at-home mother of one before embarking 25 years ago on a career in social development. She told The Irrawaddy that her involvement in social work was rooted in encouragement from the late Maran Brang Seng, chairman of the Kachin Independence Organization (KIO) in the 1980s.

Laphai Seng Raw said the award's $50,000 cash prize would go toward development projects to "provide sustainable livelihood opportunities for the communities," especially in the Myitsone area of Kachin State, where the confluence of two smaller waterways forms the Irrawaddy River. Local villagers there were relocated for a massive Chinese-backed dam project that has since been suspended.

Along with Laphai Seng Raw, Afghan Dr Habiba Sarabi, Filipino Dr Ernesto Domingo, Indonesia's Corruption Eradication Commission and the Nepalese anti-human trafficking organization Shakti Samuha were also honored with the Ramon Magsaysay Award.

RMAF President Carmencita Abella said in the statement that "each of this year's awardees is showing us that there are ways to build genuine success, one smart and persistent step at a time.

"Working selflessly in unpretentious yet powerful ways, they are showing us how commitment, competence and collaborative leadership can truly create ripples of change, even from the bottom of the pyramid," Abella added.

The Ramon Magsaysay Award was first given in 1957 and is named after the popular Filipino president, who was highly respected for his humility and service to humanity. It is awarded every year to individuals or organizations in Asia who "manifest the same sense of selfless service" as the late Filipino leader, according to RMAF.

Laphai Seng Raw will attend the award ceremony in Manila on Aug. 31. She will be accompanied by her successor, Dr Sai Sam Kham.

The ethnic Kachin leader is the fifth Magsaysay Award winner from Burma. The previous winners were the founder of the English-language Nation newspaper (shut down during the Ne Win regime) Edward Michael Law-Yone in 1959; social worker Tee Tee Luce (1959), for her public; Mae Tao Clinic founder Dr Cynthia Maung (2002), for her health services to Burmese migrants and refugees; and human rights activist Ka Hsaw Wa (2009), co-founder of Earth Rights International.

Trade with Myanmar Key Part of US Pivot to Asia

Posted: 25 Jul 2013 02:34 AM PDT

US President Barack Obama shakes hands with Burma's President Thein Sein in the Oval Office at the White House in Washington on May 20, 2013. (Photo: Reuters / Larry Downing)

Is there a pivotal link between the United States' concerns over China's assertiveness in the South China Sea and inroads into the Indian Ocean and bids from the US to expand Yangon's airport and improve the roads between Myanmar's main commercial city and Mandalay?

The rapid rapport developing between Washington and Naypyitaw coincides with US efforts to reassert influence in the Asia-Pacific region as China's belligerent territorial claims on most of the South China Sea create angst for old US allies such as the Philippines.

US concern about China's growing influence and assertiveness in East Asia has led to President Barack Obama's so-called pivot to Asia, and the key element of Washington's bid to counteract China is not military but commercial. The days of cold war politics are past.

"Simply put, the pivot is meant to be a strategic 'rebalancing' of US interests from Europe and the Middle East toward East Asia," said The Atlantic, a Washington based business-political magazine, in April.

This pivot lies behind Obama's promotion of yet another Asia-Pacific trade grouping, the Trans-Pacific Partnership, or TPP.

Obama's TPP is both new and still small, with just 11 countries, plus firm interest from Japan. Following its most recent meetings this year, the TPP loosely comprises tiny Brunei, Chile, Singapore, New Zealand, Australia, Peru, Vietnam, Malaysia, Mexico, Canada and the US. It is also still drawing up its trade pact plans.

The Atlantic described the TPP as "one of Washington's most ambitious trade proposals in years" and a key element of the pivot to Asia.

"For Washington, improving relations with established markets like Tokyo and Seoul and emerging ones like Jakarta and Manila presents tremendous opportunity, while for these countries the American presence acts as a check against growing Chinese power," the influential US magazine said.

But it isn't just the Pacific Rim that concerns Washington. China's expansions into the Indian Ocean are of equal concern, say analysts. And this is where greatly improved US-Myanmar relations seem highly relevant.

"The opening up of Myanmar after decades of isolation will make it an increasingly important geopolitical country, not just for the United States but also for India, China and the Asean bloc," a military attaché at a Western embassy in Bangkok told The Irrawaddy.

"Until now China has held the box seat in Myanmar and it has clearly used its influence to secure large supplies of gas and to use the country for access to the India Ocean. We can clearly see the benefit of this in the port and oil pipeline the Chinese have built to open up a new supply route into its landlocked southwest region," said the embassy official, speaking on condition of anonymity due to the sensitivity of the subject.

China has plans to further strengthen its infrastructure to the Indian Ocean with a new railway route from its southwestern Yunnan Province through Myanmar to the coast at Kyaukphyu, where its oil transhipment port is based. Kyaukphyu will also be the focus of a special economic zone, as yet still only on the drawing board in Naypyitaw.

As well as a diplomatic smiles offensive in Myanmar, the US is clearly eager to match China's infrastructure build-up in the re-awakening economy.

US business is already bidding to win contracts to expand Yangon's international airport and to build much-needed roads, notably in the main commercial corridor between Yangon and Mandalay.

It is significant that the US State Department's former Assistant Secretary for East Asian and Pacific Affairs, Kurt Campbell, is playing a "pivotal" role in the airport development bid.

Mr. Campbell and his former colleague at the State Department, Nirav Patel, have formed a consulting company which has now teamed up with a US business consortium, the ACO Investment Group, bidding for infrastructure projects in Myanmar.

Mr. Campbell was an influential component of Mr. Obama's decision to re-engage with Myanmar and through visits to Naypyitaw laid the path for Washington's suspension of sanctions.

"The ACO consortium is clearly interested in capitalizing on that work," said the Washington magazine Foreign Policy recently. "Kurt Campbell is widely regarded as one of the key architects of the United States’ efforts to engage and normalize relations with Myanmar," the political magazine noted.

The ACO includes several prestigious US companies, including Boeing and Burns & McDonnell Engineering.

Another still influential Washington political figure, former Secretary of State Madeleine Albright, has also suddenly taken a renewed interest in Myanmar, as chairwoman of the National Democratic Institute, an organization created by the US government to promote democracy in developing countries.

The US is not alone in being concerned about China's rising influence in the Indian Ocean rim. India is now flanked by two ports managed exclusively by Chinese state-owned interests—Kyaukphyu on the Bay of Bengal and Gwadar on Pakistan's coast abutting the Arabian Sea.

"It is possible that if the political situation in Myanmar had not changed the Chinese might have gone on to develop some sort of naval port on Myanmar's coast. This would have been worrying for both Washington and Delhi, but I do not see this happening now," the Bangkok embassy official told The Irrawaddy.

"What we are seeing instead in Myanmar is a free for all. China's continued presence is certain but it will be less influential and must compete now more on commercial grounds with the rest of the world, notably I would think Japan and increasingly the United States."

This story first appeared in the July 2013 print issue of The Irrawaddy magazine.

Laos Wins Refugee Bidding Game as Koreas Vie for SE Asia Influence

Posted: 24 Jul 2013 11:17 PM PDT

Protesters from a human rights group hold signs during a rally against Laos' repatriation of nine North Korean defectors, in front of the Laotian Embassy in Seoul on May 31, 2013. (Photo: Reuters / Kim Hong-ji)

The competition for influence between North and South Korea in Southeast Asia played itself out last week in Laos, when Seoul announced plans to more than double no-strings development aid to the Laotian government, to 4.84 billion won (US$4.83 million), more than twice the 2.04 billion won from this year.

Analysts say that increased generosity appears related to a group of young North Korean refugees who had escaped from the north and traveled thousands of kilometers across China to seek haven only to be repatriated by Laos in May despite efforts by South Korean diplomats to secure their custody. The rising aid grant is believed tied to making sure that doesn't happen again.

There was considerable international outcry when the youths, aged 15 to 23, were sent back to the North. Human rights advocates and the United Nations High Commission on Refugees criticized the Laotian decision, noting that international law protects refugees from being forced to return to places where they face persecution.

The refugees were part of a larger group who had been hiding in China for up to four years before they crossed into Laos. China doesn't recognize refugees and routinely sends back any North Koreans they catch. The other seven managed to make it to Seoul.

Until the decision to send the North Koreans back where they came from, refugees and the groups that work with them had considered Laos a safe haven on refugee routes from China to the South Korean Embassy in Bangkok. The refugees turned over to North Korea were expected to be punished severely, possibly tortured or even killed upon their return.

The implicit message in the decision by Laos to cooperate with North instead of South Korea was that Vientiane had more to gain by appeasing the North. With per capita gross domestic product of US$1,399 according to the World Bank, Laos remains one of the poorest countries in Southeast Asia, largely dependent on the sale of natural resources to China and Thailand. It therefore looks to aid to help finance its development projects.

Seoul and Pyongyang have long competed for sway in Southeast Asia, and the South's apparent ability to secure Laos' cooperation on North Korean refugees now shows it has the upper hand with the ability to buy influence. The May incident constituted a loss of face for Seoul, which also faced harsh criticism at home from human rights groups that criticized what they described as only halfhearted efforts to gain custody of the refugees.

In the immediate aftermath, the South Korean government said it would devise plans to better coordinate with Southeast Asian countries to ensure the safety of more refugees. Seoul could now be hoping that after having received the promised aid, Laos will follow its wishes and prevent another such incident.

Southeast Asian countries like Laos are a common transit point for North Korean defectors after they flee through China on their way to Seoul. Both South and North Korea have an interest in gaining custody of the refugees: the North because it's a loss of face for the refugees to be fleeing and the South because of the public backlash they face when failing to save the refugees from harsh treatment in the North.

In May, Laotian officials in Seoul said the North Koreans were handled according to protocol and without any special considerations. The Laotian Embassy in Seoul said the refugees were apprehended because they had entered the country without documentation and that they handed them over to North Korea because they were all North Korean nationals.

That seems to contain some sophistry, since refugees have been using Laos as a way point to Bangkok and beyond for years.

Laos may have all along been trying to demonstrate its frustration with Seoul, whose support for the poor, landlocked country had been waning. South Korea's aid to Laos had fallen to 2 billion won this year, after having been 5.8 billion won in 2009 and 6.8 billion won in 2011. It's possible that Laos was trying to get Seoul's attention by using the refugees as leverage. If that was indeed their intention, it appears to have worked.

Since Kim Jong-un came to power, North Korea has been trying restore relationships with countries it has histories of cooperation with, as was seen in last week's failed effort to repair some of Cuba's obsolete weaponry that was caught by authorities at the Panama Canal. Pyongyang, however, is extremely limited in what it can do internationally due to sanctions, which were strengthened in February of this year after the North's third nuclear test.

Southeast Asia is a logical place for North Korea to look for opportunities because it has histories of productive relations with a few countries in the regions, including Laos, with which it has maintained diplomatic relations since 1974. Twice last year Laos hosted high-level officials from North Korea. Then-People's Army Chief of General Staff Ri Yong Ho visited in May, followed by an August visit by Supreme People's Assembly President Kim Yong Nam.

At the time of Kim's visit, Korean Central News Agency reported that officials from the two countries discussed increasing economic cooperation. "It is the steadfast stand of the DPRK government to develop the traditional relations of friendship with Laos," KCNA quoted Kim as saying.

In September 2011, KCNA reported a visit by Laotian President Choummaly Sayasone for a summit with the late Kim Jong-il. Kim Jong-un reportedly participated in the meeting, which would have been his first official contact with a foreign head of state.

Regardless of North Korea's efforts at diplomacy, South Korea is still a much bigger economic player in the region. Bilateral trade between South Korea and the Asean bloc was US$124.9 billion in 2011, making Asean South Korea's second largest trade partner after China.

South Korea and Laos established diplomatic relations in 1974, though that only lasted until the following year when a communist government came to power in Vientiane. Relations were re-established in 1995, after the fall of the Soviet Union when Laos began to look outward.

Steven Borowiec, stevenborowiec@gmail.com, is a writer based in South Korea.

189 Survive Boat Sinking, Indonesia Looks for Lost

Posted: 24 Jul 2013 11:04 PM PDT

A police officer carries an unconscious child who was on the boat that capsized late on Tuesday after hitting a reef off the coast of Indonesia's West Java province on July 24, 2013. (Photo: Reuters)

BANDUNG, Indonesia — Rescuers were searching for several asylum seekers believed to be missing from a boat that sank off Indonesia while heading to Australia. Nearly 190 survivors were brought to safety and nine bodies were recovered.

The sinking occurred days after Prime Minister Kevin Rudd changed Australia's refugee policy so that people who arrive by boat will no longer be allowed to settle in the country. The move was a response to domestic political pressure and a string of deadly accidents involving rickety boats packed with asylum seekers bound for Australia.

Local police chief Lt. Col. Dedy Kusuma said Wednesday that 189 people were rescued and nine bodies were recovered after the tugboat sank Tuesday night about 5 km off the coast of West Java's Cianjur district. It was not clear how many people were missing.

West Java Police spokesman Col. Martinus Sitompul said the survivors included a pregnant Sri Lankan woman who was being treated at a health center in the town of Cidaun. A baby boy and a 10-year-old girl were among the dead.

Sitompul said the group was believed to consist of around 204 migrants from Sri Lanka, Iran and Iraq. They departed Tuesday morning from Jayanti, a coastal town in Cianjur, using a smaller boat that was supposed to meet a larger ship at sea to complete the journey to Australia.

Their overloaded boat, built to carry only 150 passengers, sank about nine hours into the trip due to a leak. Some of the migrants scrambled for the lifeboat, while others swam before being rescued, he said, citing Iraqi survivor Ali Akbar.

Kusuma said police, fishermen and local villagers were continuing to search.

Rochmali, a rescuer at the scene who goes by one name, said the exact number of missing was unclear since some survivors may have fled to avoid authorities.

The asylum seeker issue has been a longstanding dilemma for both Indonesia and Australia.

Last week, Indonesia decided to stop issuing visas on arrival to Iranians because a growing number of them have been caught smuggling drugs or using Indonesia as a transit point for seeking asylum in Australia. The vast islands that make up Indonesia and its proximity to Australia's Christmas Island make it a popular exit point for the perilous journey.

In its own policy shift, Australia said it would still assess the claims of asylum seekers who arrive by boat and would help them resettle in Papua New Guinea if their claims are recognized. Those whose claims are denied can return to their home nations or a third country other than Australia.

More than 15,000 asylum seekers have arrived in Australia by boat this year.

Rudd said the latest boat incident highlights the need for the policy shift.

"Too many innocent people have been lost at sea," he told reporters in Melbourne on Wednesday.

"The asylum seeker policy we've adopted is about sending a very clear message to people smugglers that if you try to come to Australia by boat you will not be settled in Australia. … That is all about destroying the people smugglers' business model," Rudd said.

Associated Press writers Niniek Karmini and Ali Kotarumalos in Jakarta, Indonesia, and Kristen Gelineau in Sydney contributed to this report.

Liverpool Warmed by Love and Largesse on Asian Tour

Posted: 24 Jul 2013 11:00 PM PDT

Liverpool player Jordan Henderson walks through Indonesian supporters as he heads to a bus for practice in Jakarta on July 18, 2013. (Photo: Reuters / Beawiharta)

MELBOURNE — Liverpool's exile from Champions League football has punched a hole in their finances and disappointed fans across the globe, but has not stopped Asia's diehards from opening their wallets to see their touring Premier League heroes.

A crowd of up to 95,000 is expected to flock to the Melbourne Cricket Ground on Wednesday to see the likes of Steven Gerrard and Luis Suarez take on local club Melbourne Victory in the Merseyside team's first visit Down Under.

The MCG blockbuster continues a lucrative three-stop tour for Liverpool, who played an Indonesian XI for 83,000 fans in Jakarta on Saturday and will sign off on Sunday in front of another big crowd in Bangkok against Thailand.

The Melbourne match also comes four days after Manchester United attracted a crowd of 83,000 to Sydney's Olympic Stadium for their 5-1 victory over an "All-Star" team from the local top-flight A-League.

Liverpool may not win a single match against United in the coming season, but the club's managing director Ian Ayre could allow himself a smile at the idea of trumping their Premier League rivals with the MCG crowd.

"I don't think we were surprised. We've always known that with some of the activity we've seen, in the online retailing business, Australia's the second-largest market for us after the UK home domestic market, which is staggering really given the size of the population," Ayre told Reuters in Melbourne.

"The number of people that come to our website online and our social media platforms is huge. Obviously the speed of the sale of the tickets, we knew there would be a huge buy-in from our foundation in this part of the world."

Once a fixture of Europe's club showpiece, Liverpool has been out of the Champions League since 2010 and struggled with huge debts and an ownership crisis in recent years.

The five-times European champions reported a loss of 40.5 million pounds (US$62 million) for their Aug. 2011-May 2012 accounts earlier this year, with debts increasing by 21.8 million pounds to 87.2 million pounds as they look to rebuild their squad.

While Asia contributes a miniscule share of global football revenues, dwarfed by Europe and still well behind emerging American markets, the football-mad region has become a lucrative destination for touring club heavyweights to shore up their finances while connecting with local fans.

Local media estimated Manchester United and Liverpool would earn A$10 million ($9.25 million) between the clubs for their visit Down Under, with the hosting state governments kicking in multi-million dollar fees to secure the matches.

The flow-on effects for the local game, which is dominated by rival football codes Australian Rules and the National Rugby League, have encouraged football administrators.

"It's exceeded our expectations," Melbourne Victory managing director Richard Wilson told Reuters.

Victory, one of the few clubs in Australia's fledgling A-League competition to turn a profit, stands to make about A$500,000 from Liverpool's visit, which includes a fixed fee, sponsorship, hospitality and a small share of ticket sales.

"There's no doubt the MCC were surprised about getting 93,000 seats sold, I think everyone thought maybe 70,000," Wilson added, referring to the MCG's custodians.

Politicians have also crowed about the economic impacts of the matches, with New South Wales state claiming a A$16 million windfall for hosting United, and Victoria A$10 million for welcoming Liverpool.

Liverpool's visit would not have happened without a government subsidy, however, said Wilson, whose club has hosted Serie A giants Juventus and Major League Soccer's LA Galaxy.

"[Liverpool's] actually been a significantly wise investment into the coffers of the Melbourne economy. Everyone's won here," he added.

"They've not always been profitable, I might add. You learn the lessons as you go along.

"Other than the straight dollars, these games' [value], at the pointy end, is that it's beamed around the world and it's live on TV on Australia."

Like Sydney, Melbourne has seen swarms of red-clad local fans mobbing Liverpool players at marketing and community events and thousands will pay A$15 each to see the team train at the MCG later on Tuesday, with proceeds going to charities.

Hundreds waved red scarves and sang the club anthem "You'll Never Walk Alone" at Fed Square in Melbourne's central business district as Liverpool players signed merchandise.

"I just love everything they stand for… family, that song," said Paul McMaster, an office worker who bought an A$185 ticket for himself for Wednesday's game and another three for friends. He was sanguine about the club's lean period.

"It's a club you support through thick and thin," he said. "There's promising signs ahead."

China Charges Disgraced Politician Bo Xilai with Corruption

Posted: 24 Jul 2013 09:59 PM PDT

Disgraced former Chongqing Municipality Communist Party Secretary Bo Xilai, left, with Chongqing Deputy Mayor Wang Lijun. (Photo: Reuters)

JINAN, China — China charged disgraced senior politician Bo Xilai with bribery, abuse of power and corruption on Thursday, paving the way for a trial that is seen by many as a test for legal reform and President Xi Jinping's commitment to combat corruption.

Prosecutors in the eastern city of Jinan in Shandong province indicted Bo, state news agency Xinhua said, meaning the trial will take place there.

About two dozen uniformed and plainclothes police officers hovered around the gates of the main courthouse in Jinan, but there were no signs that the trial was imminent.

Xi, who formally took power in March, will be eager to put the Bo scandal behind him and keep the party united as he embarks on an ambitious rebalancing of the world's second-largest economy and cracks down on corruption among senior officials.

Bo's lawyers, Li Guifang and Wang Zhaofeng, did not answer calls to their mobile phones. Government and court officials in Jinan could not be reached for comment.

Xinhua did not say when Bo's trial will start. But according to Chinese law, charges must be served to the defendant and his or her lawyers at least 10 days before a trial begins.

Bo, as a civil servant, took advantage of his position to seek profits for others and accepted an "extremely large amount" of money and properties, Xinhua quoted the indictment paper as saying.

Bo also embezzled a huge amount of public money and abused his power, seriously harming the interests of the state and people, the report said.

Bo had committed serious crimes and will be indicted on the charges of bribery, embezzlement and power abuse, Xinhua quoted the indictment as saying. Bo had been informed of his legal rights and interviewed by prosecutors, it said.

Bo has been accused of receiving more than 20 million yuan (US$3.26 million) in bribes and embezzling another 5 million yuan, Hong Kong's South China Morning Post reported on Wednesday.

After his appointment as party chief of the southern metropolis of Chongqing in 2007, Bo, a former commerce minister, turned it into a showcase of revolution-inspired "red" culture and his policies for egalitarian, state-led growth. He also won national attention with a crackdown on organized crime.

His brash self-promotion irked some leaders. But his populist ways and crime clean-up were welcomed by many of Chongqing's 30 million residents, as well as others who hoped that Bo could take his leftist-shaded policies nationwide.

Bo's likely trial could renew the debate. However, China's party-run courts rarely find in favor of defendants, especially in politically sensitive cases.

Nevertheless, China's censors appear to have temporarily lifted the ban on Bo's name on the country's Twitter-like microblogs. Searches for his name were blocked earlier in the week, as they had been for many months.

Bo's wife, Gu Kailai, and his former police chief, Wang Lijun, have both been jailed over the scandal stemming from the murder of British businessman Neil Heywood.

The government in September last year accused Bo of corruption and of bending the law to hush up that murder.

Additional reporting by Sui-Lee Wee, Hui Li and Ben Blanchard.
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