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PAGE 15 | BUSINESS WITH

PAGE 10 | CULTURE

PAGE 9 | STYLE

....

THE GLOBAL EDITION OF THE NEW YORK TIMES

TUESDAY, AUGUST 6, 2013

GLOBAL.NYTIMES.COM

Rebel rule
drags African
nation into
catastrophe

French villa
seen as key
evidence in
Chinese case

BANGUI, CENTRAL AFRICAN REPUBLIC

BEIJING

As anarchy takes hold,


humanitarian groups
warn of looming disaster

Property in Cannes
figures in bribery charge
against ex-party leader

BY ADAM NOSSITER

BY EDWARD WONG

The two men lay still in the back of the


pickup truck, staring up. Over them
stood the uniformed rebels, rifles pointing out as the truck sped forward.
The rebels had just picked up two
more citizens, caught reading fliers calling for a general strike, their friends
said shortly after. Beaten as they were
shoved into the truck, the men were unlikely to be heard from again, the friends
feared. A similar seizure had occurred
nearby the day before. Four people had
been shot and killed and dozens
wounded during a protest over another
abduction less than a week before that.
The rebels known as Slka, or alliance in the Sango language make
the law in the Central African Republic,
where coups and violent seizures of
power have outnumbered fair elections
four to one since independence from
France more than 50 years ago. Now,
even the rebels handpicked prime minister calls the countrys condition catastrophic.
The rebels have held unchecked sway
since they swarmed into this bedraggled capital in March, looting,
stealing, abducting, raping and killing
even breaking into an orphanage to
steal whatever they could, according to
Amnesty International.
Now they cruise conspicuously in their
Toyota Hilux pickups in the sparse traffic
here, ragtag fighters from the lawless
north, some of them Chadians, turbaned
or wearing looted fatigues, guns bristling. Rifle-wielding boys as young as 12
have been spotted in the trucks. The men
are accustomed to living in the bush, but
in the capital there is not much left to
steal. Many of the battered storefronts
are shuttered or empty.
In the dirt alleyways of mud-brick
houses, citizens speak of being picked
up at random by the Slka, of being
beaten or held for ransom, and sometimes of lucky escapes.
They took two people away; they
didnt come back, said Aime Wilfried
Mahoroka, a construction worker in
Bangui, who was among five people
picked up by cruising fighters on a recent Saturday in the center of the capital. The five had been shut up in a house
requisitioned by the rebels; two were
removed from the room, and when the
Slka returned, they were carrying
buckets with blood in them, said Mr. Mahoroka, adding that he later managed to
leap from the rebels pickup truck.
Even in a country with a long history
of instability, the unrest has set off
alarms. Humanitarian groups warn of a
looming disaster consisting of widespread malnutrition and disease because the economy has shut down, international aid workers have fled the
countryside and violence outside the
capital has prevented farmers from
tending their crops.
One meal a day, Faustin Ouaya,

Years ago, when a young Chinese billionaire was looking for property in
France, he settled on a villa along the
Riviera. The house later became tied to
a British businessman, Neil Heywood,
whose death in 2011 set in motion a political crisis within the upper ranks of the
Communist Party.
That villa, in the seaside resort of
Cannes, has emerged as a key aspect to
a criminal case against Bo Xilai, a fallen
Communist Party aristocrat, which has
presented the party with its biggest
challenge since the Tiananmen Square
protests of 1989.
Officials intend to present the villa as
a significant piece of evidence in a coming criminal trial that is expected to result in the end of Mr. Bos political career, according to three people with ties
to the Bo family and acquaintances.
Mr. Bos downfall began when suspicions emerged that his wife had
murdered Mr. Heywood in 2011. The trial of Mr. Bo, who is facing three criminal
charges, is expected to begin within
days.
Political analysts say the trials outcome has probably already been determined: a long prison sentence for Mr.
Bo. But the details of the case that prosecutors are expected to unveil against
Mr. Bo have largely been kept from the
public.
The most serious charge against Mr.
Bo, 64, is that of taking bribes worth
more than $3.3 million from the young
billionaire, Xu Ming, who was once listed by Forbes as one of Chinas 10

The base of Mount Sharp as seen in a color-enhanced


image from the NASA rover Curiosity, which landed on Aug. 6, 2012. The rover still has
eight or nine months to go until it reaches the bottom of the 5,500-meter mountain,

Dozens jailed in Turkish trial


Former military chief gets
life term in coup trial
that exposed deep rifts

SEOUL

BY SU-HYUN LE

BY SEBNEM ARSU
AND TIM ARANGO

A Turkish court sentenced dozens of


high-ranking military officers, politicians, journalists and others to long
prison sentences on Monday for plotting to overthrow the government, in a
long-running case that captivated the
nation for its audacity, laid bare the
deep divisions within Turkish society
between Islamists and secularists, and
earned sharp criticism from the international community over issues of judicial
fairness.
The highest-profile defendant, Ilker
Basbug, the former chief of staff of the
military, received a life sentence. Three
members of Parliament received
lengthy prison terms, and at least seven
journalists were also sentenced. As
judges read out the verdicts, protesters
who had gathered outside the courthouse and prison complex in Silivri, a
coastal town west of Istanbul, faced tear
gas fired by security forces.
The verdicts, which are subject to appeal, came as Turkey is increasingly divided between the followers of Prime
Minister Recep Tayyip Erdogan and his
Islamist-inspired government, and

RINA CASTELNUOVO FOR THE NEW YORK TIMES

WORLD NEWS

Rite of passage, act of defiance

Despite the futility of throwing rocks at


armored vehicles, Palestinian youths in the West Bank carry on. PAGE 4

A burger without the cow

Terror alert linked to Qaeda

A hamburger made from cow muscle


grown in a laboratory was fried, served
and eaten in London on Monday. PAGE 3

Intercepted communications revealed


an order for the groups Yemeni branch
to attack, U.S. officials say. PAGE 4

FOR SUBSCRIPTION INFORMATION, CALL:

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or e-mail us at subs@iht.com

Mom wants
you wed? The
state does, too

IZMIR, TURKEY

BULENT KILIC/AGENCE FRANCE-PRESSE

As judges read out the verdicts, protesters who had gathered Monday near the courthouse in Silivri, a coastal town west of Istanbul, faced tear gas fired by security forces.

those who are either loyal to the countrys old secular elite or those especially among the young who are casting about for a new voice in politics.
Those fissures were laid bare in June
during huge and sometimes-violent
street protests that began over urban
development plans in Istanbul, but similar divides had been exposed in the
court case, which went on for five
years.
First, the case was seen by many as

an important move by Mr. Erdogans


government to engineer democratic
changes by taming the military, which
has carried out three coups in modern
Turkeys history and was previously regarded as the guardian of the secular
system laid down by Turkeys founder,
Mustafa Kemal Ataturk. Many democracy advocates in the country have been
weary of military interventions in politics, and had hailed the trial as a major

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IN THIS ISSUE

No. 40,559
Business 14
Crossword 13
Culture 10
Style 9
Sports 12
Views 8

TURKEY, PAGE 3

Gun makers find new homes

Roger Cohen

While the U.S. gun lobby successfully


blocked new restrictions at the federal
level, several states have tightened
restrictions on weapons sales. But
other states are offering tax incentives
and cash grants to gun manufactures,
causing many to pack up and move to
more gun-friendly locations. PAGE 14

Greeks can learn something of economics as moral philosophy. Germans


can learn that using a fiscal deficit to
finance growth isnt a sin. Thus the euro
is also a morality lesson. PAGE 6

Slimmer HSBC is profitable

00800 44 48 78 27

where rocks could offer clues to a time on Mars when life might have thrived. An interactive feature offers a chronology of where Curiosity has been and what it has done.
As it proceeds, new images and information will be added. global.nytimes.com/science

HSBC, Britains largest bank, said


earnings rose 10 percent in the first half
of the year, to $14.07 billion, thanks in
part to lower charges for bad loans,
especially in the United States. The
bank has exited 54 businesses
worldwide. PAGE 16

Celebrated editor is humbled


After two and a half years of lost
opportunity and revenue, and following
the announcement that Newsweek was
being sold for an undisclosed amount,
the editor Tina Brown reflected on the
ill-fated merger of the magazine and
The Daily Beast. PAGE 15
CURRENCIES

t euro
s pound
s Yen

S. Franc

New York, MoNdaY 1:30pM

1=
1=
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$1.3260
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98.560
SF0.9290

Fu ll c u rre n c y rat e s Pa g e 1 7

PREVIOUS

$1.3280
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98.930
SF0.9290

As hopeful singles at the speed dating


event shifted from table to table introducing themselves, Park Chang-won, a 32year-old firefighter, grew more and
more morose.
By the time he reached the last table,
Mr. Park, whose dark eyebrows give him
a brooding look, was uttering only his
name and age. Then he sank into silence.
It felt awkward from the outset, Mr.
Park said later, as he explained that a
lifetime spent around men at boys
schools, in the military and now as a
fireman had made meeting women
harder.
Anywhere else, Mr. Parks dating
woes might have been strictly personal.
But in South Korea, fretful about plummeting birthrates but still tied to conservative ideas about matchmaking,
solving the difficulties of the lovelorn
has become something of a national priority. In perhaps the surest sign of that
anxiety, the event he attended was one
of dozens of dating parties nationwide
sponsored by an unlikely matchmaker,
the government.
In a country where arranged courtships are fading into the past, the Ministry of Health and Welfare began proKOREA, PAGE 8

JASON LEE/REUTERS

Bribery charges against Bo Xilai, a fallen


Communist official, rest largely on the villa.

richest people. The charge rests largely


on the villa, which officials say was
bought by Mr. Xu for about 2 million, or
about $2.65 million, and then given to
the Bo family, according to the three
people with knowledge of the case who
spoke on the condition of anonymity because of the delicate politics of the trial.
French documents show that people
close to the Bo family have been involved with the villa since 2001. Patrick
Devillers, a Frenchman who knew the
family when Mr. Bo was mayor of Dalian in the 1990s, is listed in a property assessment document as a current owner
of the home. There is a hotel and lodging

VILLA, PAGE 3

Paul Krugman
When it comes to fiscal policy, the
Republicans have fallen victim to their
own con game. Something similar
might explain how the party has lost its
way on everything. PAGE 7
SPORTS

Rodriguez hanging tough


Alex Rodriguez of the New York
Yankees appeared to be the lone
holdout on accepting a suspension by
Major League Baseball for suspected
involvement with a Florida clinic that
has been accused of distributing
performance-enhancing drugs to
several players. PAGE 12
Find the latest updates on the doping
suspensions at global.nytimes.com/sports
STOCK INDEXES

MoNdaY

t The dow 1:30pm


t FTSe 100 close
t Nikkei 225 close
OIL

15,603.63
6,619.58
14,258.04

0.35%
0.43%
1.44%

New York, MoNdaY 1:30pM

t Light sweet crude

$106.82

$0.15

www.chanel.com

AFRICA, PAGE 5

NASA, VIA THE ASSOCIATED PRESS

An Earth year on Mars

FLYING TOURBILLON

....

| TUESDAY, AUGUST 6, 2013

INTERNATIONAL HERALD TRIBUNE

page two
Kremlin tries
charm to
counter E.U.

Judy
Dempsey
LET TER FRO M E U R O P E
BERLIN When President Vladimir V.

Putin of Russia visited Ukraine last


month, he said the historical ties between both countries mattered as
much today as they had in the past.
Our forebears lived for centuries together, worked together, defended
their common homeland and made it
strong, great and invincible, Mr. Putin
told Russian and Ukrainian naval
forces in the port of Sevastopol. Our
blood and spiritual ties are unbreakable.
He suggested that the armed forces
of both countries be integrated.
Ukraines president, Viktor F. Yanukovich, was less than noncommittal.
He said there was scope for cooperating in modernizing the armed forces.
Mr. Putins comments reflect ever
more urgent attempts to woo Ukraine
into Russias Common Economic
Space, an economic bloc that Belarus
and Kazakhstan have already joined
and that Russia uses to consolidate its
influence in the region.
These attempts come at a time of intense competition between Russia and
the European Union for influence over
the new Eastern Europe, analysts say,
including Belarus and Ukraine as well
as Moldova, Georgia, Armenia and
Azerbaijan.
These countries belong to the European Unions Eastern Partnership,
known as the EaP, whose goal is to integrate them within the bloc through
democratization and free market economies. In return, the European Union

SERGEY DOLZHENKO/EPA

Viktor F. Yanukovich of Ukraine, right,


with Vladimir V. Putin in Kiev.

will expand trade, liberalize the visa


systems and give financial assistance.
Russia, however, opposes these countries moving closer to the European
Union. Moscow clearly fears losing influence over this region. But is the EaP
so great that it can counter the pull of
the Kremlin? said Eugeniusz Smolar,
a regional expert at the Polish Institute
of International Affairs in Warsaw.
So far, the Eastern Partnerships record concerning political and economic
liberalization has been mixed. Moldova,
Georgia, Ukraine and Armenia are
partly democratic, while Belarus and
Azerbaijan are authoritarian, according
to the Economist Intelligence Unit.
The Eastern Partnership has turned
out to be a predominately bureaucratic
instrument with limited political significance, said Rafal Sadowski, an Eastern Partnership expert at the Center
for Eastern Studies in Warsaw. This
shows the limits of the E.U.s ability to
influence its eastern neighborhood, he
added in a new report.
Despite that, Lithuania, which last
month took over the European Unions
rotating presidency, is doing every-

thing possible to draw these countries


closer to Europe. Vilnius has invited
the six countries to an Eastern Partnership summit meeting next November.
For Lithuania, and its neighbor Poland, which has pushed hard for a closer
relationship between the European Union and the Eastern Partnership countries, the crowning moment of the summit meeting would be the signing of an
association agreement between the
European Union and Ukraine, the Eastern Partnerships biggest member.
Such an agreement would bring economic and political advantages to both
sides. It would also encourage
Ukraines reformers and pro-Western
political movements to pursue the
modernization of its economy and
strengthen the rule of law.
The association agreement with
Ukraine is not just technical negotiations with just another partner; it is a
geopolitical process, said Lithuanias
foreign minister, Linas A. Linkevicius.
The European Union and Ukraine initialed the agreement more than a year
ago, but it has not been signed. Ukraine
still has to introduce more reforms.
The German government has been
the most vocal in insisting that Ukraine
release from prison the former prime
minister Yulia V. Tymoshenko, who is
ill. She was sentenced in 2011 for abuse
of office. On a visit to Ukraine last
June, Foreign Minister Guido Westerwelle of Germany said that Ms. Tymoshenko had not been given a fair trial. He offered to transfer her to
Germany for medical help.
Mrs. Tymoshenko, in our opinion,
has the right to a fair trial and appropriate medical assistance, Mr. Westerwelle said. Germany was expected to
veto signing the association agreement
unless Ukraine introduced reforms
that included dealing fairly with political detainees like Ms. Tymoshenko.
Mr. Yanukovichs failure to resolve
Ms. Tymoshenkos status is not the
only sticking point between the European Union and Ukraine. The other is
Ukraines lack of commitment.
Over the past several years, Mr. Yanukovich has repeatedly played the
European Union and Russia against
each other in order to extract concessions from both: better trade access in
the case of the European Union; and
access to cheaper energy from Russia.
Ukrainian public opinion by a small
margin supports the country moving
closer to the European Union. A survey
carried out last May by the International Republican Institute, an American nonprofit, nonpartisan organization that promotes democracy, showed
that 40 percent of Ukrainian respondents wanted an international economic union with the European Union,
while 37 percent favored Russias Customs Union. With such a divide, Mr. Yanukovich will have to weigh the political costs of taking a stance before 2015,
when the next presidential elections
are planned.
Ukraines decision and what happens politically and economically to the
other Eastern Partnership countries
matters to Europe. It is not just about
countering Russias influence. It is
about whether these countries are prepared to embrace democracy, which
Russia has little interest in. Mr. Smolar
says the European Unions offer of better trade access and closer political
contacts is helpful, but not enough.
During the 1990s, the countries of
Eastern Europe were motivated to introduce reforms because they had the
prospect of E.U. membership. That was
the most important catalyst for reform.
Eastern Partnership countries,
however, are denied that promise.
Because of that, many of the regions
elites and oligarchs see no need for reform, and reformers are frustrated, said
Mr. Sadowski of the Center for Eastern
Studies. In the competition over the
Eastern Partnership countries, that
could benefit Russia. It could also lead
to instability if the European Union allowed the new Eastern Europe to drift.
Judy Dempsey is editor in chief of Strategic Europe at Carnegie Europe.
(www.carnegieeurope.eu)
E-MAIL:

jdempsey@iht.com

IN OUR PAGES 100, 75, 50 YEARS AGO


1913 Cantonese Soldiers in Revolt
HONG-KONG Cantons joy at what was

believed yesterday [Aug. 4] to be the collapse of the Chinese rebellion was shortlived, as to-day a rabble of mutinous
troops controls the city. They have
murdered their officers and are demanding the Cheungkun, commander of a brigade of the Fifth Infantry, be made Governor. Su-Shan-Chow, who only yesterday
assumed office and abrogated the declaration of independence which had been
drawn up for Kwangtung province less
than a fortnight ago, has fled, and the
situation is again critical in the extreme.

1938 Grizzly Bear Escapes From Zoo


PIT TSBURGH A ferocious, heatmaddened, 350-pound grizzly bear,
newly arrived from the wilds of the
Rocky Mountains, escaped from a steel
cage in Highland Park Zoo here today
[Aug. 5] and spread terror throughout
the entire east side of the city for five
hours. A riot call brought police in squad
cars, armed with rifles, sawed off shot

guns and tear gas pistols to the scene.


They joined zoo attendants in stalking
the roaring beast, which dashed from its
cage toward the Monongahela River. As
a terrific crowd, mostly women and children, fled screaming from the zoo, frantic
parents herded their children indoors
and officials closed the swimming pool in
the park. Efforts to retake the huge animal alive were ruled too dangerous and
five hours after his escape the giant
grizzly was shot to death by Zoo Superintendent Arnold J. Schaumann.

1963 De Gaulle Rejects A-Ban Deal


PARIS President Charles de Gaulle has
sent a polite but unyielding reply to President Kennedys hints of nuclear co-operation in return for French adherence to
the Moscow test-ban treaty, it was
learned today [Aug. 5]. Gen. de Gaulle is
understood to have welcomed the Moscow treaty. But he reiterated his determination to continue the independent
French nuclear program with whatever
testing is necessary.

Facing their attacker, again


KILLEEN, TEXAS

Victims in 09 rampage
at army base could be
questioned by gunman
BY MANNY FERNANDEZ

Staff Sgt. Alonzo M. Lunsford Jr. usually


worked in the back of the Soldier Readiness Processing Center, giving smallpox shots to deploying and returning
troops at the Fort Hood army base here.
But on Nov. 5, 2009, he was standing at
the counter at the buildings entrance
after 1 p.m., so that his colleagues could
take a lunch break.
A soldier whom Sergeant Lunsford
recognized, Maj. Nidal Malik Hasan,
walked in front of him. Moments later,
Sergeant Lunsford said, Major Hasan
twice shouted Allahu akbar, Arabic
for God is great, and opened fire.
In a matter of minutes, 100 rounds
were fired, 13 people were fatally
wounded and more than 30 others were
injured. Sergeant Lunsford, who was
unarmed, was shot once in the head and
six times in the body. He had played
dead, and then tried to exit the building,
but Major Hasan followed him outside
and shot him in the back, he said.
It is not unusual for victims to face
their assailants in court, as Sergeant
Lunsford is expected to do Tuesday,
when he is to testify on the first day of
Major Hasans military trial. What is extraordinary is that Major Hasan, seated
behind the defense table in a Fort Hood
courtroom, may be the one questioning
Sergeant Lunsford during cross-examination.
Major Hasan is representing himself,
one of many elements of his longdelayed court-martial that legal experts
say will make it one of the most unpredictable and significant military trials in
recent U.S. history.
I will be cross-examined by the man
who shot me, said Sergeant Lunsford,
46, who retired from the army and remains blind in his left eye. You can
imagine all the emotions that are going
to be coming up.
Nearly four years after the attack, Major Hasan bearded, paralyzed after he
was shot by the police and thinner than
he was in 2009 will be wheeled into a
courthouse a few miles from the readiness center to face 13 counts of premeditated murder and 32 counts of attempted premeditated murder. He claimed to
have been trying to protect Taliban leaders from soldiers deploying to Afghanistan, and in his statements both in and
out of the courtroom, he has acknowledged being the gunman.
Because of the magnitude of the crime,
experts in military law said the only case
they could compare it to was the 1971
court-martial of First Lt. William L. Calley Jr., the only soldier convicted in the
My Lai massacre during the Vietnam
War, in which hundreds of Vietnamese
civilians were killed by U.S. troops.
The army has spent more than $5 million on the case, surrounding the outside of the courthouse with giant sandpacked barriers that protect against explosions and transporting Major Hasan
for hearings by helicopter from the
nearby Bell County Jail.
The army has also paid for his military defense lawyers, paralegals and
experts as well as the rental costs for a
trailer next to the courthouse that one
lawyer called the Hasan hut, where
he works under tight security.
The accommodations underscore the
armys methodical pursuit of its goal to
persuade a jury of 13 army officers to find
Major Hasan guilty and sentence him to
death, while minimizing any issues that
could overturn a death sentence on appeal. Major Hasan had offered to plead
guilty, but prosecutors refused him.
Acceptance of a guilty plea would
have taken the death penalty off the
table, because military law prohibits defendants in capital punishment cases

LISA KRANTZ/SAN ANTONIO EXPRESS-NEWS

Staff Sgt. Alonzo M. Lunsford Jr. wept as he spoke of the attacks at Fort Hood, Texas. He is expected to testify on Tuesday.

BELL COUNTY SHERIFF'S DEPARTMENT

Maj. Nidal Malik Hasan has acknowledged being the Fort Hood gunman. He chose to represent himself at his military trial.

from pleading guilty. The judge, Col.


Tara A. Osborn, also refused to accept
his offer to plead guilty, citing the military law.
If the jury sentences Major Hasan to
death, the verdict will present a crucial
test of the militarys death penalty system, which has been criticized as ineffectual, with appellate courts overturning or commuting several death
sentences over procedural errors. No
U.S. soldier has been executed since
1961, when John A. Bennett, an army
private convicted of the rape and attempted murder of an 11-year-old Austrian girl, was hanged at Fort Leavenworth in Kansas.
One Fort Hood soldier has been on
death row for 24 years: Pvt. Dwight J.
Loving, who was sentenced to death in
April 1989 for robbing and murdering
two taxicab drivers. Military executions
require presidential approval, and no
president has authorized Private Lovings death.
Legal experts said that it would be 10

or 15 years before Major Hasan exhausted all his appeals, but that unlike
in Private Lovings case, the president
in office would face public and political
pressure to order his execution.
You can really make a pretty strong
case for the fact that the military really
does not have a death penalty system,
said Victor M. Hansen, a retired army
defense lawyer and a professor at New
England Law, Boston.
What we have instead is a death row
system, where we will go through the
court-martial process and all the phases
of appeal, and these individuals will languish forever on death row, he said. If
theres any case in the last 30 years that
might change that, its definitely the
Hasan case.
Major Hasan is the only defendant in
modern times to represent himself in a
U.S. military capital punishment case.
The judge has forbidden him to present
evidence of his claim that he was protecting the Taliban because, she ruled, it
had no legal merit, although he can tes-

tify to his own motivations should he


take the stand. She also said that when
army prosecutors give their opening
statements, they cannot use e-mails
that were exchanged before the attack
between Major Hasan and Anwar alAwlaki, a radical cleric who was killed in
2011 in a drone strike in Yemen by the
Central Intelligence Agency.
Victims and their lawyers have criticized the Pentagon officials for describing the attack as an episode of workplace violence and not an act of
terrorism, and they worry that the trial
will avoid labeling Major Hasan as they
see him a homegrown terrorist.
It seems that the way this is proceeding, any hint that this was an act of
terror will not be allowed, and that to me
is preposterous, said Neal M. Sher, one
of the lawyers representing victims and
their families in a lawsuit accusing the
Pentagon and federal officials of knowing that Major Hasan was a security
threat and failing to act before the attack.

Disrespect of Russian flag earns U.S. band a hasty exit


MOSCOW

BY ANDREW E. KRAMER

Memo to the Bloodhound Gang: In


choosing acts of irreverent humor, keep
in mind the next leg of your tour.
Dont tell Putin, Jared Hasselhoff,
the bass guitarist for the gang, an American rock band, told a cheering crowd at
a concert in the Ukrainian port city of
Odessa. Mr. Hasselhoff, known as Evil,
then wadded a Russian flag into his
pants and used it as a prop in an act of
scatological humor.
Unfortunately for the Bloodhound
Gang, Russia was the bands next stop.
And President Vladimir V. Putin, Russians and Russian officials certainly
took notice.
By Sunday, the authorities had canceled the bands concert in southern
Russia, at the behest of the minister of
culture. Angry Russians pelted the
bands van with eggs and tomatoes on
its way out of the town of Anapa, near
the concert venue.
Then, a group of Cossacks, or tradi-

REUTERS

Jared Hasselhoff pushed Russias flag into


his pants at a concert in Odessa, Ukraine.

tional Russian frontiersmen, known for


their nationalist sentiments, assaulted
the rockers in an airport lounge and
tried to smother a band member with an
American flag before the police broke
up the scuffle.
Though Mr. Hasselhoff publicly apol-

ogized and noted that passing items of


all types through his pants is a band tradition, the top law enforcement agency
in Russia, the Investigative Committee,
threatened to press criminal charges for
desecrating the national flag. The band
reportedly left via a connecting flight
through Moscow on Sunday, earlier
than planned.
At the show in Ukraine on Wednesday
that touched off the Russians, Mr. Hasselhoff crumpled a Russian flag, unbuckled his belt and pulled the flag
through his crotch and out the rear of
his pants.
The bands frontman, Jimmy Pop,
told the crowd he disagreed with the act,
saying Russia is better than America,
so I disapprove of that.
And then, indicating a willingness
from a band whose albums include Use
Your Fingers and Hefty Fine to insult people without regard to creed or
nationality, Mr. Pop compared America
to the sexual shortcomings of former
girlfriends and set into playing the next
song.
Still, Russias minister of culture,

Vladimir R. Medinsky, wrote on Twitter


that these idiots are not going to perform in Russia, and that he had spoken
with the local authorities to halt the concert.
Flag desecration is illegal in many
countries, but the Russian authorities
have become particularly sensitive to
the political overtones of Western rock
acts after Madonna spoke out in favor of
gay rights and freedom for jailed members of the punk group Pussy Riot at
concerts here last summer.
Over the weekend, the flag stunt lit up
the Russian blogosphere. Misha
Kozyrev, a music critic for Dozhd, an independent television station, wrote on
Facebook that he rarely agrees with the
Russian authorities these days but this
is just such a case.
The difference between real punk
and the Bloodhound Gang is that real
punk is about context: here is what
makes them mad, here are their ideals,
he wrote. Jimmy Pop and company
were not about context, only the form.
Their goal was to make as many people
mad as possible.

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....

TUESDAY, AUGUST 6, 2013 |

THE GLOBAL EDITION OF THE NEW YORK TIMES

World News
Burger made
in lab served
as the food
of the future
Stem-cell beef is ethical
and earth-friendly,
backers say, if a bit dry
BY HENRY FOUNTAIN

A hamburger made from cow muscle


grown in a laboratory was fried, served
and eaten in London on Monday in an
odd demonstration of one view of the future of food.
According to the three people who ate
it, the burger, which contained no fat,
was dry and a bit lacking in flavor. One
taster, Josh Schonwald, a Chicago-based
author who writes about science and
food, said that the bite feels like a conventional hamburger but that the meat
tasted like an animal-protein cake.
But taste and texture were largely beside the point: The event, arranged by a
public relations firm and broadcast live
on the Web, was meant to make a case
that so-called in-vitro, or cultured, meat
deserves additional financing and research. Proponents of the idea, including Mark Post, the Dutch researcher
who created the hamburger at the University of Maastricht, say that lab-made
meat could provide high-quality protein
for the worlds growing population
while avoiding most of the environmental and animal-welfare issues related to
conventional livestock production.
Neil Stephens, a Cardiff University
social scientist who has studied the development of cultured meat and who attended the tasting, said the event generated a lot of interest. The exciting thing
will be to see the response, he said.
Dr. Post, one of a handful of scientists
working in the field, said that there was
still much research to be done and that it
would probably take 10 years or more
before cultured meat was commercially
viable. Reducing costs is one major issue he estimated that if production
could be scaled up, cultured beef made
as this one burger was made would cost
more than $30 a pound.
The two-year project to make the one
burger, plus extra tissue for testing, cost
$325,000. On Monday, it was revealed
that Sergey Brin, a founder of Google,
paid for the project. Dr. Post said Mr.

TOBY MELVILLE/REUTERS

The worlds first lab-made beef burger before it was cooked in London on Monday.

DAVID PARRY/EPA

Prof. Mark Post created the burger from


stem cells at the University of Maastricht.

Brin had become involved because he


basically shares the same concerns
about the sustainability of meat production and animal welfare.
The meat was produced using stem
cells basic cells that can turn into tissue-specific cells from cow shoulder
muscle from a slaughterhouse. The cells
were multiplied in a nutrient solution
and put into small Petri dishes, where
they became muscle cells and formed
tiny strips of muscle fiber. About 20,000
strips were used to make the burger,
which weighed 5 ounces, or 140 grams,
and contained breadcrumbs, salt and
some natural colorings.
The hamburger was fried in a pan
with copious amounts of butter by an
English chef and presented on a plate
with a bun, lettuce and tomato slices to
Dr. Post, Mr. Schonwald and Hanni
Rtzler, an Austrian food scientist.
Pleas from the journalists and others in
the audience for a bite were dismissed
by Dr. Post, who said he did not have
enough to go around.
Recent studies have shown that producing cultured meat in factories could
greatly reduce water, land and energy
use, and emissions of methane and other greenhouse gases, compared with
conventional meat production using
livestock.
Asked if cultured meat might be attractive to vegetarians, Dr. Post said:
Vegetarians should remain vegetarian.
Thats even better for the environment.
His goal, he said, is to let beef eaters
eat beef in an environmentally friendly
and ethical way.

europe

Turkeys ex-military chief gets life sentence


TURKEY, FROM PAGE 1

step toward civilian rule when it started


in 2008.
But as the case expanded and ensnared journalists, academics and
prominent government critics, it came
to be seen as a politically motivated attempt at silencing dissent.
Analysts have said the case also carried the notion of revenge and class resentment, because Mr. Erdogan and his
religious followers represent a group
that was marginalized under the old,
military-dominated order. Mr. Erdogan
himself had once been imprisoned for
reciting a religiously inspired poem in
public.
In these cases, they tried to create a
thornless rose garden by silencing opposition and intimidating patriotic
people with secular principles, said
Celal Ulgen, a lawyer representing 16
defendants, including Tuncay Ozkan, a
journalist, in the case.
He said that now, its impossible to
talk about a justice system free of politics, or public trust in justice.
Among others sentenced were
Mustafa Balbay, an elected member of
Parliament from the Republican
Peoples Party, an opposition group,
who was sentenced to 34 years and 8
months in prison; Kemal Kerincziz, a
lawyer who has filed complaints against
40 writers for insulting Turkishness;
Veli Kucuk, the lead suspect in the trial
and a former brigadier general suspected of founding Jitem, a wing of the
Turkish police; and another opposition
member of Parliament.
In sentencing at least seven journalists to prison terms between six
months and 22 years, the case also illuminated the countrys poor record on
media freedom. The Paris-based Reporters Without Borders has referred to
Turkey as the worlds biggest prison
for reporters, and ranked Turkey 154th
of 179 countries, behind Iraq and Russia,
in its 2013 World Press Freedom Index.
Bulent Arinc, the deputy prime minister who is a member of Mr. Erdogans
Justice and Development Party, said in
a televised press conference, We are
not at the point of liking or not liking the
verdict. After all, it is a judicial verdict
and we have to abide by it.
He continued, We are not those that
celebrate convictions or applaud arrests. There is a court verdict and
everyone has to respect it.
On Monday, families were denied access to the final hearing, and state officials blocked access to the Silivri courthouse. Roads leading to the town were
closed in the early morning, preventing
buses of protesters from reaching the
area.
Television images showed security
forces erecting barricades around the
prison premises and at checkpoints on

MURAD SEZER/REUTERS

Protesters near the courthouse and prison complex in Silivri on Monday. Families were denied access to the final hearing, and state officials blocked access to the courthouse itself.

the Silivri highway, as well as images of


anti-government protesters in an open
field far from the prison waving flags
behind a security cordon. On Saturday,
in what critics said were pre-emptive
security measures before the verdict,
the Istanbul police raided several locations, including offices of a neo-nationalist youth group, and detained at least 20
people who called for public protests
against the trial.
When the case began it had all the elements of a fantastic and conspiratorial
spy novel: Nearly 300 military officers,
politicians, journalists and others were
accused of being part of a clandestine
organization whose roots stretched
back to the days of the C.I.A.s activities

in Turkey during the Cold War.


The modern incarnation of the socalled deep state, according to the thousands of court documents, was an underground
organization
called
Ergenekon, named for a mythical valley, that had plotted to overthrow Mr.
Erdogans government by sowing chaos
in the streets and carrying out assassinations. The case summoned forth the
ghosts of Turkeys past, when the military lorded over civilian governments
and the possibility of a coup was omnipresent, and underscored the degree to
which the Turkish state has changed under Mr. Erdogan, who through this case
and others has secured civilian authority over the military.

In Chinese criminal case, a French villa


VILLA, FROM PAGE 1

company called Rsidences Fontaine


Saint George registered at the address,
7 Boulevard des Pins, and Mr. Heywood,
the Briton, was listed in court documents as manager of the company from
2007 to June 2011, five months before he
died in China.
The villa, surrounded by white concrete walls, is in the middle of a leafy
neighborhood whose yards are dotted
with palm trees and swimming pools. A
French legal document put the villas
value in December 2010 at about $3.3
million.
Until this summer, the authorities had
been indicating to lawyers for the Bo
family that two charges would be
brought against Mr. Bo: bribe-taking involving about $1.1 million in payments
from Mr. Xu to the Bo family; and abuse
of power, for Mr. Bos dismissal of Wang
Lijun as the police chief of Chongqing in
what officials said was an attempt to impede an investigation into Mr. Heywoods death. As party chief, Mr. Bo ran
Chongqing for four years until his dismissal in March 2012, when the murder
scandal unfolded.
Right before the charges were announced in late July, an internal document circulating among officials indicated that the bribe-taking amount was
more than $3.3 million three times
what the Bo family lawyers had been
told.
The additional amount represented
the value attached to the villa, which the
lawyers had not heard of before and
which officials say Mr. Xu gave to the Bo
family. A charge of embezzlement had
also been included people briefed by

The villa, in Cannes, is linked


to a young Chinese billionaire.
lawyers said the amount was 5 million
renminbi, or about $800,000, which had
disappeared from a Dalian government
construction agency.
In recent bribe-taking cases involving
senior officials, amounts have been
much larger. Last month, the former
railways minister, pleaded guilty to taking 64 million renminbi in bribes. He
was given a suspended death sentence,
equal to life imprisonment.
Mr. Bo, the ambitious son of one of the
partys revolutionary leaders, is widely
disliked by other senior party officials,

They tried to create


a thornless rose garden
by silencing opposition and
intimidating patriotic people.
But Mr. Erdogan, who has been in
power now more than a decade and is
the countrys longest serving prime
minister, is facing increasing resistance
to his government by the nearly half of
the country that did not vote for him.
Those opponents found their voice in
the street protests in June, and could
again be galvanized by Mondays verdicts, presenting a new test for the
prime minister, who is planning to run

U.K. reacts
as feud over
Gibraltar
heats up
LONDON
REUTERS

MARK RALSTON/AGENCE FRANCE-PRESSE

The Intermediate Peoples Court in Jinan, China, where Bo Xilai is to be tried. The case is
the biggest challenge to the Communist Party since the Tiananmen Square protests of 1989.

and he was seen by many as a potential


rival to Xi Jinping, the current leader. In
Chongqing, Mr. Bo began a populist
campaign to win support for a spot on
the Politburo Standing Committee, the
elite group that rules China.
One close family associate denied that
the Bo family ever owned the villa or
benefited from it. The person said Mr.
Xu bought a villa in Cannes with the
help of Mr. Devillers, whom Mr. Xu had
met in Dalian through the Bo family.
When Mr. Devillers moved to Cambodia
from China, he handed management of
the property to Mr. Heywood, the associate said.
French court documents show that in
June 2011, Mr. Heywood was removed
as manager of the hotel company at the
address. That title was given to Feng
Jiang Dolby, a famous former talk show
host from Liaoning, the province that includes Dalian. Ms. Dolby, who is a Brit-

ish citizen, has a residence listed in Surrey, England.


Chinese job Web sites list an educational consulting company that Ms.
Dolby founded as directly tied to Mr.
Xus conglomerate, Dalian Shide.
Ms. Dolby, 43, could not be reached for
comment.
Mr. Xu, who has been detained since
Mr. Bo was put under house arrest in
Beijing in March 2012, could not be
reached for comment.
Mr. Devillers did not reply to an email on Monday. Last summer, he was
detained by the Cambodian government at the request of the Chinese authorities and flown to China, where investigators questioned him for several
weeks before releasing him. Mr. Devillers has not been in Cambodia for
many months and is now living elsewhere, possibly in France, an associate
said.

Prime Minister David Cameron is seriously concerned by reports that Spain


may introduce fees at the border with
Gibraltar and close its airspace to planes
using the British overseas territorys airport, his spokesman said Monday.
Foreign Minister Jos Manuel Garca-Margallo of Spain said Sunday that
his country was considering charging
50, or $66, to cross the border, as well as
opening tax investigations into Gibraltarians who own property in Spain.
Mr. Garca-Margallo also signaled a
tougher stance on the issue of sovereignty, saying the party is over, an apparent reference to years of softer
policy on Gibraltar under the previous
Socialist government.
Diplomatic tension over the territory
grew 10 days ago when boats from
Gibraltar dumped concrete blocks into
the sea to create an artificial reef at the
mouth of the Mediterranean. Spain said
the reef would block its fishing boats. It
countered with tougher border checks
that caused delays for tourists.
On Monday, Chief Minister Fabian Picardo of Gibraltar said Spains recent
proposals were the politics of madness and accused it of saber-rattling
and behaving like North Korea.
He is saber-rattling la North Korea, Mr. Picardo told Sky News. It almost makes one feel as if you are listening to the politics of Franco in the 1950s
and 60s, he said, referring to the fascist
dictator who ruled Spain from 1936 to
1975 and who wanted to regain Gibraltar.
Mr. Camerons spokesman said Britain would not compromise on the territorys sovereignty. The spokesman also
said the Foreign Office had summoned
the Spanish ambassador for talks to express Britains concern.
We are seeking an explanation from
them regarding the reports that they
might target Gibraltar with further
measures, the spokesman said.

for president next year.


It is highly possible that todays
court verdicts will prompt further soul
searching, especially among opponents
that became more politicized after the
June protests, said Ilter Turan, a professor of political science at Bilgi University in Istanbul.
Some might have plotted a military
coup, he added, but there were such
evident violations of defense, of the
right to a fair trial, that the public will
widely consider this a political trial
rather than a fair one.
Tim Arango reported from Baghdad.
Christine Hauser contributed reporting
from New York.
B R I E F LY

Europe

LO N D O N

Police apologize to family


over death during protest
The Metropolitan Police on Monday
apologized to the family of a British
newspaper vendor who died during
demonstrations in London against a
Group of 20 meeting in 2009. The police
force also said it had reached an out-ofcourt settlement with the family of the
man, Ian Tomlinson.
Simon Harwood, a police officer, hit
Mr. Tomlinson, 47, with a baton and
shoved him to the ground as Mr. Tomlinson tried to leave a cordon put up to contain protesters in London. Mr. Tomlinson died moments later. Mr. Harwood
was tried and acquitted of manslaughter
but was later fired after a police disciplinary panel ruled that his actions had
amounted to gross misconduct. That
panel, however, declined to consider
whether Mr. Harwoods actions had
contributed to Mr. Tomlinsons death.
In a statement on Monday, Deputy
Assistant Commissioner Maxine de
Brunner said, I apologize unreservedly
for Simon Harwoods use of excessive
and unlawful force, which caused Mr.
Tomlinsons death, and for the suffering
and distress caused to his family. (AP)
NICE

Another Cte dAzur hotel


is struck by jewel theft
Thieves stole 40,000 worth of jewelry
from safes in guests rooms at a luxury
hotel on the French Riviera over the
weekend, the police said, continuing a
string of recent heists on the Cte
dAzur.
Two safes were raided at the Grand
Hotel in Saint-Jean-Cap-Ferrat, and the
robbers tried others without success,
the police said. Identity papers were
also stolen.
Last month, an armed robber stole
jewelry worth 102 million, or $136 million, from a hotel in Cannes, the largestever gem heist in France. In May,
thieves hit the Cannes film festival,
where many movie stars are lent gems
to parade on the red carpets. (REUTERS)

....

| TUESDAY, AUGUST 6, 2013

INTERNATIONAL HERALD TRIBUNE

world news middle east

Terror alert linked


to Qaeda leaders
WASHINGTON

Bin Ladens successor


told Yemeni branch to
attack, U.S. officials say
BY MARK MAZZETTI

The Obama administrations decision


last week to close nearly two dozen diplomatic missions and issue a worldwide
travel alert resulted from intercepted
electronic communications in which the
head of Al Qaeda in Pakistan ordered the
leader of its affiliate in Yemen, the terrorist organizations most lethal branch, to
carry out an attack as early as this past
Sunday, according to American officials.
The intercepted conversations last
week between Ayman al-Zawahri, who
succeeded Osama Bin Laden as the
head of the global terrorist group, and
Nasser al-Wuhayshi, the head of the Yemen-based Al Qaeda in the Arabian
Peninsula, revealed one of the most serious plots against American and other
Western interests since the attacks on
Sept. 11, 2001, American intelligence officials and lawmakers said.
It is highly unusual for senior Qaeda
leaders in Pakistan to discuss operational matters with its affiliates, so
when the intercepts between the two senior Qaeda leaders were collected and
analyzed last week, senior officials at
the C.I.A., State Department and White
House immediately seized on their significance. Members of Congress were
quickly provided classified briefings on
the matter, American officials said.
This was significant because it was
the big guys talking, and talking about
very specific timing for an attack or attacks, said one American official who
had been briefed on the intelligence reports in recent days.
The identities of the two Qaeda leaders whose discussions were monitored
and the imminent nature of the suspected plot in the intercepts the terrorists mentioned Sunday as the day of the
attacks were to take place help explain why the United States, as well as

This was significant because


it was the big guys talking, and
talking about very specific
timing for an attack or attacks.
other Western governments, have
taken such extraordinary precautionary steps in the past few days to close
embassies and consulates in the Middle
East and North Africa.
But the intercepts were frustrating in
that they did not reveal the specific location or target of the suspected attacks,
American officials said.
In an article posted on the Web Friday
and published Saturday, the identities of
the Qaeda leaders whose conversations
were intercepted was withheld by The
New York Times at the request of senior
American intelligence officials. The
names were disclosed Sunday by McClatchy, and after the government became aware of the story, it dropped its
objections to The Times publishing the
same information.
Nineteen American diplomatic outCORRECTIONS

A picture on July 29 with an article

about Saad Mohseni, head of the Moby


Group in Afghanistan, carried an incorrect credit. The photograph of Mr.
Mohseni in a New York town house was
taken by Ozier Muhammad of The New
York Times, not by Barton Silverman.
An article in July 27-28 editions about
four ambitious restaurants in Portland,
Oregon, misstated part of the name of a
road that the Stumptown founder
Duane Sorenson is helping remake with
new projects including his restaurant
Ava Genes. It is Division Street, not Division Avenue.
An article in July 27-28 editions about
Trent Reznor and Nine Inch Nails, who

posts across the Middle East and North


Africa will remain closed this week, the
State Department said, despite what officials said was no new information
about terrorist plots that they believe
are in the works.
Britain and France on Monday extended the closing of their embassies in Yemen until Thursday, following a U.S.
warning of a possible militant attack in
the region, and Yemeni officials said
that they were increasing security
around transit hubs in that country,
Reuters reported from Sanaa.
American embassies in Kabul and
Baghdad, always heavily defended,
were among a handful that reopened on
Monday. Also reopened were the embassies in Algiers and Dhaka.
The terror threat, as senior lawmakers
briefed on the matter said Sunday, appears to be both specific and maddeningly vague. But more than one of them
said that the electronic chatter among
Qaeda leaders that intelligence agencies
have intercepted bears ominous parallels to what the agencies picked up ahead
of the attacks of Sept. 11, 2001.
A State Department spokeswoman,
Jen Psaki, said the decision to extend
the closings came from an abundance
of caution, but she offered few details.
In this strange, wait-and-see climate,
officials say that they are confident they
have intercepted communications discussing attacks in the coming days but
have no clear information about where
they should try to defend against them.
Although the greatest threat is seen in
the Middle East, it could basically be in
Europe, it could be in the United States,
it could be a series of combined attacks, Representative Peter T. King, a
New York Republican who is a member
of the House Intelligence Committee,
said on ABC.
The one aspect that officials appear to
agree on is that Al Qaedas affiliate in
Yemen, now considered the groups
most dangerous and among its most efficient branches, is behind the plotting.
The group, Al Qaeda in the Arabian
Peninsula, has tried to carry out several
high-profile attacks in recent years. One
was a mans attempt to blow up a transAtlantic jet over Detroit on Dec. 25, 2009,
using explosives sewn into his underwear. Months earlier, the group tried to
kill the Saudi intelligence chief with a
bomb surgically implanted in the attackers body.
American officials believe that both
bombs were built by Ibrahim al-Asiri,
one of the groups leaders whom the
Obama administration has been trying
to kill as part of a campaign in Yemen
using armed drones.
Lawmakers have given credit for detecting the threat to the National Security Agency, which faces mounting criticism after revelations about its
extensive electronic monitoring programs in the United States and abroad.
In the days immediately after the
N.S.A. revelations began, some American officials warned that terrorist leaders had already changed their communication methods and patterns of as a
result of the exposure the revelations
had brought. But the N.S.A.s ability to
intercept the recent discussions about
plots seems to indicate that American
spy agencies have not been hindered as
much as some have asserted.
are returning with a new album and tour,
referred incorrectly to Adrian Belews
years as a guitarist with Talking Heads.
Mr. Belew, who worked on the early
stages of Nine Inch Nails new project,
played with Talking Heads in the early
1980s, but he was not with the Heads for
their concert movie Stop Making
Sense, which was filmed in 1983.
A music review on July 23 about Oresteia, an adaptation of the Aeschylus
trilogy dealing with the House of Atreus
in the aftermath of the Trojan War,
staged at Bard College in Annandaleon-Hudson, New York, misidentified the
killer of Agamemnon. He is murdered
by Clytemnestra, not by Aegisthus.

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RINA CASTELNUOVO FOR THE NEW YORK TIMES

Palestinian boys in Beit Ommar, West Bank, playing a game that they call Arabs and Army in which they re-enact confrontations with Israeli soldiers and the arrests that follow.

Defiance with the weapons at hand


BEIT OMMAR, WEST BANK

For some Palestinians,


throwing stones at Israeli
troops is a rite of passage
BY JODI RUDOREN

Muhammad Abu Hashem, 17, was sleeping in a sleeveless undershirt when the
Israeli soldiers stormed into his home
here at 4 a.m. on the second Monday in
July. As they led him away moments
later, Muhammads mother rushed
after him with a long-sleeved shirt:
They both knew it would be cold in the
interrogation room.
It was Muhammads fourth arrest in
three years for throwing stones at Israeli soldiers and settlers. His five brothers
three older and two younger have
all faced similar charges. Last year,
three Abu Hashem boys, and their father, were in prison at the same time.
Children have hobbies, and my
hobby is throwing stones, Muhammad
explained weeks before his most recent
arrest. A day with a confrontation is
better than a free day.
As Israeli and Palestinian negotiators
resumed peace talks last week in Washington, the stone throwers of Beit Ommar are a reminder of the abiding tensions that animate relations between
the two peoples that would populate the
imagined two states living side by side.
Youths hurling stones has long been
the indelible icon some call it a caricature of Palestinian pushback against
Israel: A recent report by the United
Nations said 7,000 minors, some as
young as 9, had been detained between
2002 and 2012.
Here in Beit Ommar, a village of 17,000
between Bethlehem and Hebron that is
surrounded by Jewish settlements, rock
throwing is a rite of passage and an
honored act of defiance. The futility of
stones bouncing off armored vehicles
matters little: Confrontation is what
counts.
When they are not actually throwing
stones, the children here play Arabs and
Army, re-enacting the clashes and arrests. And when 17-year-old Bilal Ayad
Awad was released in June after 16
months in prison, he was welcomed like
a war hero with flags and fireworks,
women in wedding finery lining the
streets to cheer his motorcade.
The Israeli Army commander in the
area counts 5 to 15 stone-throwing incidents per week, and the arrest on July 8
of Muhammad and his father, Ahmad,
brought to 45 the number of Beit Ommar
residents taken into custody since the
beginning of 2013, 35 of them ages 13 to
19. A teacher at the local high school said
20 boys missed class while in prison last
year. A few, including Muhammad, were
out more than 60 days, forcing them to
repeat a grade.
Here, it is as if the intifada never
stopped, said Musa Abu Hashhash, a
field worker for the Israeli human rights
group Btselem.
Beit Ommar, a farm town with roots in
the Roman era, is a hot spot because of
its perch off Road 60, the main thoroughfare from Jerusalem south to the
settlements of Gush Etzion, which the
Palestinians say have taken up to onethird of the villages original 34 square
kilometers, or 13 square miles.
The military, which since May has
been joined by a company of border police to crack down, focuses on 11 prime
stone-throwing points along the road,
which stretches about a kilometer and a
half, or about a mile. There are the duo,
two houses teenagers hide between;
the stage, a raised area; the triangle, an open field; and the Molotov

Recent arrests in the Abu Hashem family


The arrest of Ahmad Abu Hashem and his son Muhammad on July 8 was almost
routine for a family in which few months have passed recently without at least one
member behind bars. Mr. Abu Hashem, an activist in Beit Ommar, and all six of his
sons have served time for throwing stones at Israeli soldiers and settlers.
Up to one month under arrest
2009

More than one month

2010

2011

2012

2013

CURRENT
AGE

Ahmad (father)

46

Thaer

24

Imad

22

Yousef

20

Muhammad

17
Since July 8

Hamza

15

Qusay

12

Source: Abu Hashem family and Israel Defense Forces

Neve Daniel
an

ISRAEL
1949
Armistice
Line
Israeli security
barrier

Gvaot

Rosh
Tzurim

Efrat

GUSH ETZION
Elazar
azar

Beit Ain
Kfar
Kfa
Etzion
Et

Planned route of
security barrier

Alon Shvut

Safa

WEST BANK
W

Migdal Ozz

Beit Ommar
Beit Ommar
Cemetery

Israeli settlements

Karmei
rmei Tzur
Gush Etzion

60

Al Arrub
Camp

Beit Fajjar
Beit Ommar
municipal
boundary
2 km

Source: BTselem, Applied Research Institute-Jerusalem

bend. And then there is the 200-year-old


cemetery that slopes up from the road
just north of the village entrance.
On Thursday, after the burial of a 63year-old retired teacher, a teenager
hurled a rock at a passing car with yellow
Israeli plates: whack. Another teenager,
two more stones: another direct hit.
The settlers stopped their car, got out
and began shouting at the small crowd.
Soon, there were soldiers, rifles raised
and tear gas at the ready, who eventually hauled a Palestinian taxi driver into
an army jeep.
Menuha Shvat, who has lived in a settlement near here since 1984, long ago
lost count of the stones that have hit her
cars reinforced windows.
Its crazy: Im going to get pizza, and
Im driving through a war zone, said Ms.
Shvat, who knew a man and his 1-yearold son who died when their car flipped in
2011 after being pelted with stones on
Road 60. Its a game that can kill.
For as long as anyone here can remember, the cemetery has been a field
for that game. Residents said it was often
surrounded by soldiers and filled with
tear gas, though the military commander said he stations his troops across the
road and instructs them to unleash riotcontrol measures only if violence erupts.
Muhammad sees it as his Islamic
duty to help bury the dead, and he has
his own funeral-preparation ritual. He
pulls on boots. He sprays his hands with
perfume to counteract the gas. He grabs
a face mask, to protect his identity, and
his muqlaa a homemade slingshot.
It was the funeral in June of a 2-yearold girl accidentally crushed by a relatives bulldozer that led to his most recent arrest.

They were shooting gas, and I was


with my mother in the car while the soldiers jeep was entering the town,
Muhammad said to a police officer after
the arrest. So I got out and threw
stones at them.
Musa Awad, a teacher at Beit Ommars
high school, said that eight generations of
his family were buried in the cemetery
but that he was one of many village residents who had stopped following funeral
processions there because of the inevitable clashes. Two years ago, Mr. Awad
said, he and his brothers offered to

Children have hobbies, and


my hobby is throwing stones.
A day with a confrontation is
better than a free day.
donate a patch of land for a new
cemetery, far from the main road, but the
Islamic authorities declined.
Mr. Awad, like many here, views the
stone throwers with a mixture of pride
at confronting Israel and fear for their
safety. Nobody dares to criticize them
and say, Why are you doing this?
The youths, and their parents, say
they are provoked by the situation: soldiers stationed at the village entrance,
settlers tending trees beyond. They
throw because there is little else to do in
Beit Ommar no pool or cinema, no
music lessons after school, no part-time
jobs other than peddling produce along
the road. They do it because their brothers and fathers did.
One Friday in July, two soldiers stood
sentry on a hilltop several hundred paces
inside the village. Five border police of-

ficers were stationed under an olive tree


near the wholesale fruit market. More
soldiers were on nearby rooftops, army
jeeps in the middle of a road.
Three young men with slingshots
crouched between trees, sending a little
brother out to scout. They whipped the
woven-string contraptions over their
shoulders one, two, three, four times,
then the stones disappeared in the distance. Two stones, five, seven.
The boy reported that soldiers were
coming closer. The young men retreated to a lower ridge.
Two soldiers with riot helmets and
rifles appeared on a rock wall a few
steps from where the stone throwers
had been. Too late.
Three people from Beit Ommar were
arrested in the wee hours of the following Sunday. That night, Muhammad
Abu Hashem slept, while his father and
younger siblings sat a vigil on worn
couches on their roof.
The patriarch, Ahmad Abu Hashem,
is an activist who videotapes arrests
and clashes for the Center for Freedom
and Justice, an advocacy group. His cellphone rang at 3:45 a.m.: 13 jeeps were
entering the village. He was heading out
to follow them when the alley filled with
shouts of Soldiers, soldiers! They
were coming for him and his son.
Muhammad Abu Hashem captures
the contradictions of growing up here.
He was tickled at the first salon-slicking
of his short hair for a relatives recent
wedding. But he shunned a snack of
popcorn outside: prison food.
He recently sneaked into a settlement
before dawn to steal apricots he finds
especially delicious because they grow
on land he sees as stolen from his
people. One of his hobbies is rescuing
abandoned bird eggs and nurturing
them in cages warmed by light bulbs until they hatch.
When they fly, he said, its like a
person in prison, and he will take his
freedom.
Muhammads first arrest was in October 2010: His family paid a fine of about
$1,400. He was jailed from April to June
of 2012, then returned to prison that
September for another seven months.
Graffiti welcoming him back remained
on the outer wall of the family home as a
dozen soldiers arrived July 8.
Two soldiers crouched in the driveway, and 10 crowded the living room.
Muhammad crammed on a couch with
his two younger brothers and a cousin
while the soldiers examined his fathers
identification. Then they asked for his.
The whole operation took eight
minutes. The jeeps had not left the alley
when it erupted in stones.
Defense for Children International,
an advocacy group that last year documented 360 cases of arrested Palestinian youths, found that many were blindfolded, beaten and threatened during
interrogations. Most confessed, and 90
percent received jail sentences in Israels military system, according to the report, compared with 6.5 percent of arrested Israeli children, who are
prosecuted in a civil system.
When Muhammad and his father appeared for their first hearing, they
raised their wrists handcuffed together in something of a salute. The teenagers face was a mixture of triumph and
terror: He could face up to 10 months
after a trial scheduled to start Aug. 18.
Their lawyer, Nery Ramati, soon discovered that Muhammad had already
admitted throwing a stone during the
girls funeral.
I have nothing to do for him now,
Mr. Ramati sighed.
Rina Castelnuovo, Nayef Hashlamoun
and Khaled Abu Aker contributed reporting.

....

TUESDAY, AUGUST 6, 2013 |

THE GLOBAL EDITION OF THE NEW YORK TIMES

middle east africa world news

Planned trials are a fresh blow to Brotherhood


CAIRO

Move could be an effort


to pressure group to
call off pro-Morsi sit-ins
BY BEN HUBBARD
AND MAYY EL SHEIKH

Three top officials of Egypts Muslim


Brotherhood will go on trial on Aug. 25 on
charges of inciting members of their
group to kill rioters in front of its
headquarters during the upheaval that
led to President Mohamed Morsis ouster
on July 3, a Cairo court has ruled.
Although the authorities have detained dozens of Brotherhood members
since Mr. Morsis fall from power, the
case against the groups spiritual leader, his deputy and another key figure is
the first to be scheduled for trial.
The pending prosecutions, announced Sunday, are a new blow to the
Brotherhood, which emerged as the
countrys strongest political movement
after the ouster of President Hosni
Mubarak in 2011, but which has seen all
of its newfound power stripped away in
a matter of weeks.
The scheduling of the trial will most
likely further complicate political and
diplomatic efforts to persuade Mr. Morsis supporters to end two large sit-ins in
Cairo that they have committed to maintaining until he is restored to power.
Egypts new military-backed government has said it will not let the sit-ins
continue indefinitely, but many fear that
efforts to disperse the protesters would
unleash new violence. Envoys from the
European Union, Qatar, the United Arab
Emirates and the United States have
tried to help broker a solution.
On Monday, the U.S. deputy secretary
of state, William J. Burns, visited the
prison where Khairat el-Shater, the
Brotherhood spiritual leaders deputy,
is being held, The Associated Press reported. Mr. Burns was accompanied by
the foreign ministers of Qatar and the
United Arab Emirates as well as an envoy from the European Union.
The U.S. States Department has sent
several delegates to Egypt in recent
months as the turmoil and anti-Americanism rise in its traditional Arab ally.
Over the weekend, it emerged that Secretary of State John Kerry had recommended Robert S. Ford to serve as the
next U.S. ambassador to Egypt.

AMR ABDALLAH DALSH/REUTERS

During a protest in Cairo on Monday, a member of the Muslim Brotherhood and supporter of the deposed president Mohamed Morsi, pictured in posters, sprayed graffiti reading Interior thugs outside the attorney generals office.

Mr. Ford, a longtime Middle East


hand and fluent Arabic speaker, is well
known for taking an active role as ambassador to Syria in challenging President Bashar al-Assads crackdown before U.S. diplomats were pulled out of
the country for their own safety.
With Egypt in a state of political upheaval, the ambassadorial pick for Cairo
has emerged as one of the most important diplomatic assignments for President Barack Obama, who made a
warmly received policy speech to the Islamic world in Cairo in June 2009. But
four years later, the Obama administrations influence has substantially

Central African Republic


slides toward disaster
AFRICA, FROM PAGE 1

who works in the Ministry of Tourism,


said of the circumstances facing many
citizens. Sometimes, not even that.
Inside the battered 1970s government
ministries, many of them deserted for
long periods because the civil servants
have not been paid in months, officials
spoke with despair about how, after the
ouster of the countrys despised president, the state had disappeared altogether. One minister has been going to
work in a taxi because his car was stolen
by the rebels. Another top functionary
sits alone on a chair in an empty office
looted of every machine, said a Western
businessman who went to see him.
Its anarchy, a nonstate, said Prime
Minister Nicolas Tiangaye, a former human rights lawyer kept on by the rebel
leadership as the emissary to an outside
world that does not recognize it.
Looting, arson, rape, massacres of
the civilian population they are sowing terrorism, he said, staring at the
floor in his darkened office.
Slka rebels have been accused by
local residents of killing 15 people last
month because the minibus in which
they were riding contained T-shirts supporting the deposed president. The bodies of seven of them, recovered from the
Ubangi River, showed signs of torture.
The International Federation for Human Rights, a French group which sent
a delegation here, said the rebels had
killed more than 400 people since they
took power.
The crisis has been a long time in the
making. Isolated, landlocked in the
middle of the continent, with few roads
out or natural resources, the Central African Republic became independent in
1960 after a brutal, six-decade colonial
reign by France. The former colonial
power has continued to meddle in the
cycles of coups, rebellions and violent
transitions that have marked the countrys history ever since, though like other countries it is taking a back seat now.
Weariness has overtaken Western
officials faced with the countrys turmoil, said a Western diplomat who has
stayed on here.
The state had already nearly disappeared under the corrupt rule of Franois Boziz, who was president for 10
years before being chased out by the
rebels in March. He was the leader of a
previous rebellion himself and is now in
hiding, probably in the region, though
even the government here says it is not
certain. The rebels emerged from the
barren, more-Muslim north, angered at
the neglect of a region inaccessible from
the capital for half of the year because of
heavy rains and poor roads, accusing
the president of reneging on an agreement to integrate some of their fighters
in the army.

No schools, no roads, really, its


chaos, said Abdel Kadir Kalil, a Slka
commander who carried an elaborately
carved ceremonial cane, explaining
why he took up arms. We wanted to develop the country, but the ex-president,
Boziz, he ignored our projects, he said
on the terrace of the Libyan-built fivestar hotel where he lives.
High above the city, in a marbled presidential residence looking out over the
Ubangi River, the rebel leader and selfproclaimed president, Michel Djotodia,
brushed away accounts of recent Slka
abuses and pleaded for outside aid.
Peace has already returned to Bangui, he said, adding: When we came,
it was like a miracle. It was God that
willed it.
Mr. Boziz, the ousted president, had
gone mad, he said.
But when Mr. Djotodias high-speed
motorcade barreled down the calamitous roads to a military training center 65
kilometers, or 40 miles, from the capital,
the crowds that came to watch stood silent and stony-faced by the roadside.

XAVIER BOURGOIS/AFP

A Slka rebel in Bangui. Rebel forces


have held sway in the capital since March.

The Slka leader waved and said,


Thank you, thank you through the
car window, but there was no response.
At a base in the capital the president
came to inspect illicit weapons he said
had been seized from the citys streets.
Silently, swarms of motley-clad fighters
followed him about the base, some of
them young boys. An aide said they
were hoping the president would give
them money.
There have been some signs that the
population is fed up and starting to push
back, albeit in small measures.
Residents simultaneously banged
pots in their neighborhoods for three
nights in a row during a recent week, a
concert des casseroles meant to show
the peoples displeasure, they said.
When a student was abducted from
one of his classes I went to see his
corpse at the morgue, he had been tortured, said a friend, Miguel Nabana
the youth of Gobongo erected barricades,
only to face rebels who opened fire.

waned, and Egypts bitter rivals the


secular liberals and the supporters of
Mr. Morsi have accused Washington
of undermining their cause.
The prosecutions of the Brotherhood
officials could be an effort to put more
pressure on the group to strike a deal to
end the current crisis, said Shadi Hamid,
director of research of the Brookings
Doha Center. The case concerns events
during the final days of Mr. Morsis tenure, when hundreds of rioters
equipped with stones, Molotov cocktails
and firearms attacked the Muslim
Brotherhoods headquarters in Cairo
and tried to burn those inside alive.

Researchers
find cells for
navigation
in humans
BY JAMES GORMAN

The discovery that rodents, bats and


nonhuman primates have a system in
the brain for what amounts to dead
reckoning navigation is one of the most
important brain research developments
of the past few decades.
The system is built on so-called grid
cells, neurons that emit pulses of electricity in a regular pattern that maps the
animals movement.
Scientists predicted they would find
grid cells in humans and now they
have.
Joshua Jacobs of Drexel University in
Philadelphia and a team of scientists including, Michael J. Kahana at the University of Pennsylvania and Dr. Itzhak
Fried at UCLA and Tel-Aviv University,
reported in Nature Neuroscience on
Sunday that signals from electrodes implanted in human patients with severe
epilepsy proved the presence of grid
cells that functioned in the same way as
those in other mammals.
It completes the picture, said Edvard I. Moser of the Norwegian University of Science and Technology, one of
the discoverers of grid cells. Its a significant contribution.
Dr. Jacobs said it had been important
to do the research because it had been
far from certain that grid cells existed in
human beings.
Its not at all clear that humans and
rodents behave in the same manner, he
said.
The area of the brain where grid cells
are found in rats, and now in humans,
the entorhinal cortex, is often damaged
in the early stages of Alzheimers disease, so knowing how the navigation
system works is important, Dr. Jacobs
said. The scientists also located grid
cells in another brain area in humans,
the cingulate cortex, where, Dr. Jacobs
said, they had not been found in rats.
The research involved the collaboration of neurosurgeons, research neuroscientists, and 14 patients with drug-resistant epilepsy, who had electrodes
implanted in their brains to locate the
source of the seizures before surgery.
The patients volunteered to play a video
game in which they navigated a virtual
environment; analysis of brain cell activity recorded during the game-playing
provided the data for analysis.
The same patterns characteristic of
rodent grid cells were found in humans
as they navigated, Dr. Jacobs said,
showing that humans were using the
same neural mechanism.

Police officers in the area during the


attack did not intervene, and a few men
inside the darkened building fired guns
from the windows. Health officials said
eight people were killed outside the
building, and a video posted online
showed one badly beaten man being
dragged from the building.
Accused of incitement to murder in
the case are the Brotherhoods spiritual
leader, Mohamed Badie; his deputy, Mr.
Shater; and another official, Mohamed
Bayoumi. Three other defendants have
been charged with murder and arms
possession, and 29 other people have
been accused of using force, terrifying

residents and attacking a police officer,


the state news media reported.
The prosecutions represent an escalation of the militarys campaign against
the Brotherhood, said Mr. Hamid, the
Brookings Doha research director. It
reflects a real desire on the part of some
in the organization to use this opportunity to destroy the Brotherhood, he said.
Even under Mr. Mubarak, whose security services routinely detained and
tortured Brotherhood members and
other Islamists, the Brotherhoods spiritual leader, or supreme guide, was
mostly left alone.
In a separate case, the prosecutor

general ordered the detention of Mr.


Morsis former chief of staff and his
deputy for 15 days over an investigation
into charges that they incited the detention and torture of protesters by Brotherhood members in 2012.
Mr. Morsi, who has been detained in
an undisclosed location since his ouster,
is also under investigation for supposed
collaboration with the Islamist militant
group Hamas and his escape from prison during the uprising that led to Mr.
Mubaraks ouster.
Michael R. Gordon contributed reporting from Washington.

....

| TUESDAY, AUGUST 6, 2013

INTERNATIONAL HERALD TRIBUNE

Views

International Herald Tribune


THE GLOBAL EDITION OF THE NEW YORK TIMES
STEPHEN DUNBAR-JOHNSON Publisher
RICHARD W. STEVENSON Editor, Europe
DAVE SMITH Managing Editor
PHILIP McCLELLAN Deputy Managing Editor
URSULA LIU Deputy Managing Editor
KIRK KRAEUTLER Deputy Managing Editor
KATHERINE KNORR Assistant Managing Editor
TIM RACE Assistant Managing Editor
RICHARD BERRY Editor, Continuous News
SERGE SCHMEMANN Editor of the Editorial Page
PHILIPPE MONTJOLIN Senior Vice President, Operations
ACHILLES TSALTAS Senior Vice President, Innovation and Conferences

editorial opinion

The euros morality lesson


Of little
Greek
envelopes,
German
moral
philosophy
and the
currency
that tried
to bridge
them.

CHANTAL BONETTI Vice President, Human Resources


JEAN-CHRISTOPHE DEMARTA Vice President, International Advertising
CHARLOTTE GORDON Vice President, Marketing and Strategy
PATRICE MONTI Vice President, Circulation
RANDY WEDDLE Managing Director, Asia-Pacific
SUZANNE YVERNS Chief Financial Officer
Stephen Dunbar-Johnson, Prsident et Directeur de la Publication

THE LONG STALL


America needs to rebuild its economy
from the bottom up. In the meantime,
recovery still appears to be years away.
After last weeks barrage of economic data, the best response
anyone could muster was that conditions were likely to improve in the rest of the year. But even that looks like wishful
thinking. Worse, though corrective government action is crucial, sound policy cures have not been forthcoming.
The latest quarterly report on economic growth showed real
G.D.P. up only 1.4 percent over the past year. Much of the
weakening can be attributed to self-imposed wounds, including
the fiscal-cliff showdown at the end of last year and this years
payroll tax increase and automatic budget cuts.
The latest jobs report indicates that Americans do not have
the requisite economic security to absorb those imminent
blows, let alone other inevitable setbacks, including another
possible standoff over the nations debt limit. The unemployment rate ticked down in July to 7.4 percent, from 7.6 percent
in June. But some of that was because of people dropping out
of the work force; and to the extent that it was from new hiring, more than half of the 162,000 jobs added in July were in
the low-wage areas of retail and restaurants.
Against that backdrop, consumers will not be able to propel
the economy forward. Recent headline numbers on vehicle
sales, for example, were bolstered by light truck sales attributable to the housing rebound; car sales, in contrast,
dropped. Nor will the housing rebound alone spur the economy, because a strong housing market requires a strong job
market, which has yet to materialize.
In the absence of help from Congress on job creation, President Obama recently pledged to use whatever executive
authority I have to help the middle class. One place he could
start is by revamping the treatment of hourly employees by
private-sector federal contractors. Recent research shows
that many are paid low wages that force them onto food
stamps and other public assistance.
Mr. Obama wants to rebuild the economy from the middle
out. But what is just as urgently required is to rebuild it from
the bottom up.

International Herald Tribune

G LO B A L I ST
KALYVES, GREECE Economics in Germany, it has been noted, is a branch of
moral philosophy. Growth is the reward
for good behavior. Such virtue includes
frugality and avoidance of debt. It goes
without saying that, in this view, promoting growth by increasing fiscal deficits is the height of immorality.
Economics in Greece is rather different. It is a branch of personal ingenuity.
Morally loaded words from the AngloSaxon canon like corruption and
cronyism have attached themselves
to the Greek approach, but for Greeks
following rules was a form of stupidity.
If politicians were corrupt, what could
be the purpose of personal integrity?
Far better, Greeks thought, to trust in
fakelaki (the little envelope) and
rousfeti (a political favor for votes)
than confuse morality with material advancement.
The euro crisis has been many
things, among them a reminder of the
old adage: Marry in haste, repent at
leisure. But at its core lies a crisis of two
moralities, northern and southern.
It was a German, Martin Luther, who
ignited the Reformation with his objections to the papacys corruption, the sale
of indulgences and the papal authority
to absolve sin. A big case of northern
probity against southern laxity, frosty
rigor against sun-soaked elasticity: the
clash of an attempt to hold humanity to a

er, perhaps collect a fakelaki or two


for some favor, and find other work in
your ample spare time for extra cash.
This was an elastic but inefficient
form of organization. It is also incompatible with a north-south single currency.
Think of Mitsotakis, an engaging 45year-old Harvard-and-Stanford educated politician, as a man trying to
bridge Europes moral chasm. A member of Prime Minister Antonis
Samarass conservative New Democracy Party, he recently took on what may
be the toughest job in Greece: shaking
up the public sector. Reform is difficult
and painful, he said. I do not always
sleep comfortably. But this is necessary.
Under Greeces deal with international creditors, it has to cut 15,000 public
sector workers by the end of next year.
Before then, by September, it has to
move 12,500 into a mobility scheme
that gives them eight months to find
work in another state department or
lose their job (another 12,500 will follow
later). Mitsotakis has to accomplish

YORGOS KARAHALIS/REUTERS

Greek public sector workers protesting in Athens against job cuts.

this against the backdrop of an economy whose contraction he called unprecedented outside a war-hit economy. Anger on the left and the right
(where the neo-Nazi Golden Dawn
party is surging) is virulent. A summer
lull will give way to an angry fall.
Still, Mitsotakis believes he has strong
backing. Look, the private sector has
taken 1.3 million unemployed since the
crisis broke, and there has been basically zero from the public sector. Because
the reform was put off, the private sector was taxed and punished as an alternative. There is a silent majority for this
reform. Weve had a state that is way
too big with no meritocracy, no disciplinary activity, and a lot of people entering through the back door. Some employees were even being paid in jail.
He held up his mobile device with a
screen shot of the documentation for
the transfer of a single employee from
one provincial town to another. His own
signature was on it along with 15 others! Such bureaucracy is deadening, as
well as being a rich potential source of
corruption: Of those many signatures,
some may come with a price.
We can get better value for money
and meet the commitments of my country, Mitsotakis told me. But our creditors must understand that the main
risk today is if they try for more measures any further attempt to tax incomes will not fly. Austerity has been
pushed too far. When our prime minister meets with President Obama this
month, one of his main messages will
be this.
Europe must bridge its moral chasm.
Greeks can learn something of economics as moral philosophy. Germans can
learn that austerity as economic tool
has its limits and that the use of a fiscal
deficit to finance growth is not a sin.
The euro is also a morality lesson.
You can follow me on Twitter, or join me
on Facebook.

The price of Made in China


Turning to
China for
things like
steel to fix
American
bridges
carries hidden costs,
from jobs
to the environment.

MIXED BLESSINGS
Pity the poor patient who tries to make sense of federal advisory committee reports that appear headed in opposite directions. For at least three decades, Americans have been told
that its best to detect cancers early, when they are theoretically most curable. So it was not all that surprising when an
authoritative advisory group recommended that very heavy
smokers get an annual CT scan to check for early signs of
lung cancer. It was much more surprising, however, when a
separate group of experts suggested that for several cancers
including potential lung cancers early scans are detecting too many abnormalities that arent dangerous and should
not be treated. Oddly enough, both groups may be right.
The recommendation on smokers came from the U.S. Preventive Services Task Force, independent experts who serve
as the federal governments foremost authority on screening
procedures. Screening with chest X-rays, long the standard approach, seldom catches a tumor early enough for surgeons to
save a life. In 2010, however, a large clinical trial found that lowdose CT scans, which detect much smaller tumors, could reduce mortality by 16 percent among patients at the highest risk
of lung cancer because of their age and smoking history. That
led several prominent medical groups to recommend such
screening in high-risk current and former smokers. Now,
based primarily on that same study, the Preventive Services
Task Force has recommended that people ages 55 to 79 who
have smoked a pack of cigarettes a day for 30 years or two
packs a day for 15 years or the equivalent get annual CT scans.
It estimates that such screening could save 20,000 lives a year,
among the 160,000 Americans who die each year of lung cancer.
Meanwhile, three members of a working group advising the
National Cancer Institute suggested that overdiagnosis
the detection of tumors that would not cause illness or death if
left unattended is common in cases of breast, lung, prostate
and thyroid cancer. Such overdiagnosis often leads to further
tests and biopsies to determine if a tiny tumor looks dangerous, followed by surgery, radiation or chemotherapy to eliminate an abnormality that would never have caused illness. In
such cases, the cure is worse than the disease it is trying to
prevent. The group said that, ideally, screening tests should
focus on tumors that will cause harm and are more likely to be
cured if detected early. But that cant be done until scientists
find better ways to identify which lesions are truly worrisome.
Recommendations from these groups come with unanswered questions. This will put the burden on patients, in
consultation with their doctors, to decide whether to get early
screening for cancers and what to do based on the findings.

Roger
Cohen

high moral standard with a system taking human fallibility as a starting point.
A few centuries later along comes a
shared currency that tries to unite the
Protestant north with the Catholic or
Orthodox south, a Europe that went
through the Reformation with one that
did not. Trouble was inevitable.
In Greece, as Kyriakos Mitsotakis,
the minister of administrative reform
and e-governance, put it to me in an interview, the system went like this:
The parties used ministries to reward
people. The grand bargain was a job in
the public sector for votes. But you
needed to be able to finance the system.
Fine as long as money was flowing and
loans easy. Now that they are not, you
have no choice but to be efficient.
Once you had a job in the public sector, you were, as the Greeks put it, accommodated, or in the Italian phrase,
sistemato. In either country this
meant you were integrated for life in a
system that allowed you to work a modest amount, enjoy a good pension earli-

Peter Navarro

Here is a symbol of Chinas assault on


the American economy: the VerrazanoNarrows Bridge, which connects
Brooklyn and Staten Island. This landmark, which opened in 1964, is North
Americas longest suspension bridge.
Its also in urgent need of renovation.
Unfortunately, $34 million in steel production and fabrication work has been
outsourced to China.
How did this happen? The Metropolitan Transportation Authority says a
Chinese fabricator was picked because
the two American companies approached for the project lacked the
manufacturing space, special equipment and financial capacity to do the
job. But the United Steelworkers claims
it quickly found two other American
bridge fabricators, within 100 miles of
New York City, that could do the job.
The real problem with this deal is
that it doesnt take into account all of
the additional costs that buying Made
in China brings to the American table.
In fact, this failure to consider all costs
is the same problem we Americans as

consumers face every time we choose a


Chinese-made product on price alone
a price that is invariably cheaper.
Consider the safety issue: a scary one,
indeed, because China has a very welldeserved reputation for producing inferior and often dangerous products.
Such products are as diverse as leadfilled toys, sulfurous drywall, pet food
spiked with melamine and heparin tainted with oversulfated chondroitin sulfate.
In the specific case of bridges, six
have collapsed across China since July
2011. Xinhua, the state-run news agency,
has acknowledged that shoddy construction and inferior building materials
were contributing factors. There is also
a cautionary tale much closer to home.
When California bought Chinese steel
to renovate and expand the San Francisco-Oakland Bay Bridge, for a project
that began in 2002, problems like faulty
welds by a Chinese steel fabricator
delayed the project for months and led
to huge cost overruns. Those delays
eroded much of the savings California
was banking on when it opted for the
cheap Chinese steel.
There is a second reason not to buy
Made in China products: jobs. The
fact is that steel production is heavily
subsidized by the Chinese government.

These subsidies range from the massive


benefits of a manipulated and undervalued currency to the underwriting of the
costs of energy, land, loans and water.
Because of Chinas subsidies most
of which are arguably illegal under international trade agreements its producers are able to dump steel products
into America at or below the actual cost
of production. This
problem is particuChina has a
well-deserved larly acute now as
China is saddled with
reputation for massive overcapacity
producing
in its steel industry.
inferior and
Of course, every
job China gains by
often dangerdumping steel into
ous products.
American markets is
an American job lost.
Each steelworkers job in America generates additional jobs in the economy,
along with increased tax revenues.
With over 20 million Americans now
unable to find decent work, we could
certainly use those jobs as we repair
the Verrazano Bridge.
The M.T.A. has ignored not only the
social costs but also the broader impact
on the environment and human rights.
Chinese steel plants emit significantly
more pollution and greenhouse gases

per ton of steel produced than plants in


the United States. This not only contributes to global warming but also has a
direct negative impact on American
soil, since an increasing amount of
Chinas pollution is crossing the Pacific
Ocean on the jet stream.
Finally, when American companies
and government agencies opt for
Chinese over American steel, they are
tacitly supporting an authoritarian regime that prohibits independent labor
unions from organizing one of many
grim ironies in todays Peoples Republic. As a result, American workers are
forced to compete against Chinese workers who regularly work 12-hour days, six
or seven days a week, without adequate
safety gear. Both Chinese and American
steelworkers wind up as victims.
The bottom line is this: Buying
Made in China whether steel for
our bridges or dolls for our children
entails large costs that most consumers
and even our leaders dont consider
when making purchases. This is hurting
our country and killing our economy.
a professor of economics
and public policy in the business school at
the University of California, Irvine, directed the documentary Death by China.
PETER NAVARRO,

End of life decisions, at birth


We physicians must
help parents at risk
of having
extremely
premature
babies
make
informed
decisions.

April R. Dworetz

ATLANTA Fifty years ago this Wednes-

day, Americans were gripped by the


fate of a baby Patrick Bouvier
Kennedy, the first child born to a sitting
president since the 19th century, and
John F. Kennedys last. He arrived on
Aug. 7, 1963, five and a half weeks premature. Despite medical heroics, including the use of a hyperbaric oxygen
chamber, he died 39 hours later.
Neonatal care has improved greatly.
Were he born today, Patrick, who was
delivered at 34 weeks gestation, would
likely survive and have a healthy life.
For all the biomedical advances, though,
the key ethical problems surrounding
premature birth remain. Today, babies
as much as 11 weeks younger than
Patrick can be saved at birth. The problem is that their prognoses are often
much worse than his would have been.
I am a neonatologist. I save babies.
Most of them, especially those born after
28 weeks, will at most suffer mild or
moderate disabilities. But of those born
before 28 weeks 30,000 of the half million babies born prematurely each year
in this country many will have serious
physical, social or cognitive problems.
Consider that a one-pound, one-ounce
girl born unexpectedly at 23 weeks
gestation has a 92 percent chance of dy-

ing early or having moderate to severe


neurodevelopmental impairment.
Most extremely premature babies
will experience at least one complication bleeding in the brain, infections,
intestinal perforation, severe lung damage before discharge. Many will need
treatment long after birth, sometimes
for life, at great financial and emotional
cost to them and those around them.
A few months ago I cared for just such
a child. Lets call her Miracle. She was
born at 23 weeks gestation and weighed
a little over a pound.
Despite the bleak
For all the
prognosis, her parbiomedical
ents asked that we readvances, key suscitate her in the
ethical probdelivery room.
lems related
So we did. But over
the next eight weeks,
to premature
to keep her alive, we
birth remain.
had to prick Miracles
heel so many times
she developed scarring. We suctioned
her trachea hundreds of times. We put
tubes through her mouth and into her
stomach, we stabbed her again and
again to insert IVs, and we took blood
from her and then transfused blood
back. We gave her antibiotics for two
severe infections.
Each of these events created suffering, for Miracle and her parents. Her
mother visited daily and developed an
anxiety disorder. Her father came in
only once a week, the pain was so great.

After eight weeks, Miracle came off


the ventilator we had put her on. But
three days later we had to turn it back
on, and it was possible she would die or
remain on the ventilator permanently if
we didnt give her steroids, which can
have side effects as serious as cerebral
palsy. Her mother opted for the steroids. But Miracles father was angry. He
muttered to me: Why do you do this?
Why do you keep these babies alive?
Some parents believe that withholding or withdrawing life-sustaining
treatment will prevent their infant from
suffering and living a life not worth living; others consider it murder.
Ultimately, parents have the right to
decide, but we physicians must help
them make informed decisions. I asked
Miracles father whether anyone had
talked to him about resuscitating Miracle before she was born. He vaguely
remembered a conversation, but hadnt
understood what treating such a tiny
premature baby meant.
And nobody talked to him after Miracle was born about continuing life-sustaining treatment. He had gotten to her
two-month birthday without realizing
that her suffering might end in death.
We had updated his wife, but she didnt
like to hear bad news, and didnt tell him.
Luckily, the news has improved. Miracle is off the ventilator and will likely
survive to be discharged, though she
will suffer from chronic lung disease.
Even so, we need to make sure both

parents are always kept part of the discussion, to ensure we have their informed consent throughout treatment.
More broadly, when in the first trimester obstetricians talk with pregnant
women and their partners about testing
for genetic anomalies, they should include discussion of values and attitudes
toward life, death and disability, or at
least recommend such discussions.
Certainly parents at high risk of giving
birth to premature babies, or to babies
with severe congenital defects, should
receive such counseling, including from
neonatologists and other specialists.
Sometimes, I think we doctors need
to do more than inform. On occasion,
Ive offered to make a life-or-death decision for parents. If they agree, they
are essentially making the decision, but
are shifting the burden to me. Its
harder for parents to say, I unplugged
my baby, than to let the doctor do it.
Our culture is slowly growing more
comfortable talking about end-of-life issues as they relate to the elderly:
whether to allow a natural death or prolong life even if it means suffering. In
my world, though, the surrogate decision makers are young parents of infants like Miracle. And they are still
completely unprepared. Its time we
broaden the discussion to include them.
APRIL R. DWORETZ is an assistant professor
of pediatrics, specializing in neonatology,
at Emory University.

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....

TUESDAY, AUGUST 6, 2013 |

THE GLOBAL EDITION OF THE NEW YORK TIMES

commentary letters

views

Appalachian hope and heartbreak


Meanwhile
AM Y D. C L A RK
BIG STONE GAP, VIRGINIA A person just

Republicans against reality


Paul
Krugman
Last week House Republicans voted for
the 40th time to repeal Obamacare.
Like the previous 39 votes, this action
will have no effect whatsoever. But it
was a stand-in for what Republicans
really want to do: repeal reality, and
the laws of arithmetic in particular. The
sad truth is that the modern G.O.P. is
lost in fantasy, unable to participate in
actual governing.
Just to be clear, Im not talking about
policy substance. I may believe that Republicans have their priorities all
wrong, but thats not the issue here. Instead, Im talking about their apparent
inability to accept very basic reality
constraints, like the fact that you cant
cut overall spending without cutting
spending on particular programs, or
the fact that voting to repeal legislation
doesnt change the law when the other
party controls the Senate and the White
House.
Am I exaggerating? Consider what
went down in Congress last week.
First, House leaders had to cancel
planned voting on a transportation bill,
because not enough representatives
were willing to vote for the bills steep
spending cuts. Now, just a few months
ago House Republicans approved an
extreme austerity budget, mandating
severe overall cuts in federal spending
and each specific bill will have to involve large cuts in order to meet that
target. But it turned out that a significant number of representatives, while
willing to vote for huge spending cuts

as long as there werent any specifics,


balked at the details. Dont cut you,
dont cut me, cut that fellow behind the
tree.
Then House leaders announced plans
to hold a vote cutting spending on food
stamps in half a demand that is
likely to sink the already struggling effort to agree with the Senate on a farm
bill.
Then they held the pointless vote on
Obamacare, apparently just to make
themselves feel better. (Its curious
how comforting they find the idea of
denying health care to millions of
Americans.) And then they went home
for recess, even though the end of the
fiscal year is looming and hardly any of
the legislation needed to run the federal
government has passed.
In other words, Republicans, confronted with the responsibilities of governing, essentially threw a tantrum,
then ran off to sulk.
How did the G.O.P. get to this point?
On budget issues, the proximate source
of the partys troubles lies in the decision to turn the formulation of fiscal
policy over to a con man.
Representative Paul Ryan, the chairman of the House Budget Committee,
has always been a magic-asterisk kind
of guy someone who makes big
claims about having a plan to slash deficits but refuses to spell out any of the
all-important details.
Back in 2011 the Congressional
Budget Office, in evaluating one of Mr.
Ryans plans, came close to open sarcasm; it described the extreme spending cuts Mr. Ryan was assuming, then
remarked, tersely, No proposals were
specified that would generate that
path.
Whats happening now is that the
G.O.P. is trying to convert Mr. Ryans
big talk into actual legislation and is
finding, unsurprisingly, that it cant be
done. Yet Republicans arent willing to
face up to that reality. Instead, theyre
just running away.

When it comes to fiscal policy, then,


Republicans have fallen victim to their
own con game. And I would argue that
something similar explains how the
party lost its way, not just on fiscal
policy, but on everything.
Think of it this way: For a long time
the Republican establishment got its
way by playing a con game with the
partys base. Voters would be mobilized as soldiers in an ideological crusade, fired up by warnings that liberals were going to turn the country over
to gay married terrorists, not to mention taking your hard-earned dollars
and giving them to Those People.
Then, once the election was over, the
establishment would get on with its
real priorities deregulation and
lower taxes on the wealthy.
At this point, however, the establishment has lost control. Meanwhile, base
voters actually believe the stories they
were told for example, that the govThe
ernment is spending
Republican
vast sums on things
Party seems
that are a complete
unable to
waste or at any rate
participate
dont do anything for
people like them.
in even the
(Dont let the govmost basic
ernment get its
processes of
hands on Medicare!)
governing.
And the party establishment cant get
the base to accept fiscal or political
reality without, in effect, admitting to
those base voters that they were lied to.
The result is what we see now in the
House: a party that, as I said, seems
unable to participate in even the most
basic processes of governing.
What makes this frightening is that
Republicans do, in fact, have a majority in the House, so America cant be
governed at all unless a sufficient number of those House Republicans are
willing to face reality. And that quorum
of reasonable Republicans may not exist.

The culture of solidarity


James
Carroll
Its not that Pope Francis speaks positively about gay people, as he did earlier about atheists. Nor is it his simple
lifestyle, his accessibility to the press,
or his personal modesty. The accumulation of surprises coming from the new
pope points to something deeper: the
possibility of historic change with implications reaching far beyond the
Catholic Church.
Pope Francis seems to have called off
the Vaticans culture war with the modern world, a hyperdefensiveness that
dates back to the American and French
revolutions. With the brief exception of
John XXIII, who reigned from 1958 to
1963, popes have for centuries been
tribunes of negativity, rejecting what
one called the syllabus of errors that
accompanied the arrival of liberal democracy, the emancipation of women,
secularism the whole panoply of values that followed the Enlightenment.
Renouncing the positive spirit of
Pope Johns Vatican II, the two recent
popes were culture warriors of the first
order. John Paul II railed against the
culture of death, while Benedict XVI
denounced the dictatorship of relativism. Both men seemed to despise most
of what they saw around them.
In contrast, Pope Francis is proposing what he called in Brazil last month
a culture of solidarity, and his affable

style gives substance to it. He deplores


rampant individualism and selfishness, but he does so in order to affirm
the bond of fellowship that makes human life precious. The fellowship
seems to matter more than the
obstacles to achieving it. He seems to
exemplify the possibility of new connections across old divides. He comes
across as happy.
Commentators have parsed the
popes pronouncements, arguing that
so far he has not really broken new
ground in matters of doctrine. Francis
criticizes clericalism the closed culture of the Catholic priesthood but
seems content to keep its main pillars
in place. If he has a
plan for seriously reThe accumuforming structures of
lation of
church accountabilisurprises
ty that failed so
coming from
miserably in the sex
Pope Francis
abuse crisis, he
hasnt unveiled it.
points to the
But clearly, he has
possibility
turned away from
of historic
the culture-war arguchange.
ments that reduced
church authority to
naysaying, which in turn hollowed out
church influence. Pope Francis has
something else in mind.
The impoverished world is at the center of this papacys purpose, and the
solidarity Francis urges is, first, with
the vast population of the destitute. He
is the pope of the woebegone, the castasides, the marginalized all those
who have been left behind by the global
economy. That commitment was
powerfully on display in troubled
Brazil, where Francis plunged into
frenzied crowds to make real his determination to be heard on what is by far
the most pressing moral and political
problem of our time.

Francis predecessors expressed


concern about global poverty, too, but
not like this. Indeed, Popes John Paul
and Benedict were ambivalent about
the preferential option for the poor
that lies at the heart of what is known
as liberation theology. How can you be
in favor of the poor, they worried, if rich
people have souls, too? The hierarchy
was instructed to emphasize charity
over justice. That refusal to engage in
what was taken to be class conflict undermined Catholic credibility, as the
gulf between haves and have-nots only
widened.
Liberation theology, spawned in Latin America, was a prophetic response to
the scandal of runaway poverty. Dom
Helder Camara, the Brazilian archbishop, epitomized its spirit. When I give
food to the poor, he famously said,
they call me a saint. When I ask why
they are poor, they call me a communist. The Vaticans outright rejection of
the movement was one of its most damaging mistakes, certainly an element in
the broad disillusionment of the many
former Catholics in Latin America.
Rome was suspicious, even, of the
witness of Oscar Romero, the bishop of
El Salvador who was gunned down at
the altar by the criminal right-wing regime he had denounced. Last month,
though, when Pope Francis said Mass
before a throng in a shantytown sports
field in Rio, a huge portrait of Romero
hung behind him. Francis wants the
martyred bishop to be named a saint.
If the Catholic Church threw itself
fully into the struggle for justice
restoring its preferential option for the
poor and demanding reforms in the
structures of the world economy that
would make a difference. For Pope
Francis, its now clear, everything else
comes second.
BOSTON GLOBE

passing through Big Stone Gap may not


notice the corner drugstore on Wood
Avenue with the fading sign, its windows dark and hollow like so many others in these rural coal towns. But for
people who live here in the heart of central Appalachia, the Mutual Drug Cafeteria was a community hub, an extension of the family kitchen. Its where
residents could fill a prescription, pick
up an oil lamp or a strawberry huller,
find a plastic pirate sword for the
school play and get a good cup of coffee
with a plate of pork chops, soup beans,
pickled beets and blackberry cobbler.
The store closed last week, having
been sold to a franchise, a fate many
shops in small towns are facing.
I learned a lot about people in places
like the Mutual, as I was raised by a
family who believed that shopping local
was as important as going to church.
I found comfort in the stores dark
paneling, the creak in the floor, the
aroma of kraut and franks, the first
names of everybody from the pharmacist to the cooks. My grandparents
drove 30 miles past chain pharmacies
to get medicine here. The pharmacists
daddy was a lifelong neighbor and family friend, after all.
In the store, books by local authors
like Adriana Trigiani were displayed
beside tiny sculptures made of coal, all
stamped with blaze orange price tags.
The Mutual inspired the setting for
Trigianis Big Stone Gap novels, where
her main character, Ave Maria Mulligan, works as the pharmacist. It
seems like such a small thing, a corner

pharmacy with a cafe in a small town,


said Trigiani, who grew up here. But
the Mutual was everything to me when
I was a girl. She added, The greater
world lived in our corner pharmacy.
The Mutual is steps from Poplar Hill,
where Victorian homes of 19th-century
coal barons still stand. Many predicted
that Big Stone Gap would be the Pittsburgh of the South. And years ago, the
Mutuals neighbors had big-city names,
like the New York Cafe and the Monte
Vista Hotel. Today, lower coal prices,
fewer jobs and chain stores mean the
Mutual has joined more haunted, vacant spaces in towns
with decreasing popIll miss the
ulations.
old display
Residents were still
case in front
lining up for breakof the pharfast the week the Mumacy counter
tual closed. But in recent months, talk in
that holds
medical relics. the cafe had turned to
hard times: a nurse
worrying about the
layoffs at the local hospital, or a teacher
and her aide talking about losing their
jobs. Miners, their hardened hands
wrapped around coffee cups, were
anxious about a changing industry.
I had hoped my children would have
memories of the Mutual, that they would
have studied the old pictures on the wall
and learned about community while eating lunch in those brown booths. Memories arent made in superstores with
their beeping and bar codes, with their
automatic doors and drive-through windows. As the town inches toward homogenization, it loses a little more of its history, language, architecture.
Ill miss the old display case in front
of the pharmacy counter that holds
medical relics. Beside those brown
glass bottles was a quotation written on
a worn notecard: To sin by silence
when we should protest makes cow-

ards of strong men.


There is wishful chatter about somebody opening the Mutual again, a cafe in
the space where people can come together, where tourists can eat a piece of
pie and see the fog rising from the river
like spirits against the backdrop of ancient mountains. They could step over to
a new tourist center, they dream, where
they will get directions to landmarks like
our museums and recreational trails.
They might find their way to the used
bookstore owned by Wendy Welch and
Jack Beck. Welchs memoir, The Little
Bookstore of Big Stone Gap, chronicles how she and Beck managed to sustain a brick and mortar bookstore in a
digital world, and became a ray of hope
in a community where decades-old
businesses can no longer compete.
They might run into Jack McClanahan, the chairman of the Southwest Regional Recreation Authority of Virginia.
His and others Spearhead Trails project aims to turn our mountains into
year-round recreational attractions.
There is potential in our rural community and those nearby for landmarks
to be renovated and reopened, and
crumbling buildings replaced with gardens, spaces for farmers markets and
theaters. If towns want to thrive again,
they have to focus on preserving and
promoting their signature attractions.
Small businesses like the Mutual must
be part of that plan to draw people back.
After all, no one ever takes a road trip
to see a CVS or McDonalds.
We must make an agreement to support our small businesses and make the
hope of saving our towns a reality.
associate professor of English and director of the Appalachian Writing Project at the University of Virginias
College at Wise, is co-editor, with Nancy
M. Hayward, of Talking Appalachian:
Voice, Identity and Community.

AMY D. CLARK,

LET T E R S TO T H E E DI TO R
Why Germans are outraged
After reading John Vinocurs Germany
sounds the alarm (Views, Aug. 1), I felt
he had missed part of why Germans are
outraged about the U.S. electronic
eavesdropping program.
I will grant him that this breach of privacy has been seized upon by extreme
groups, but this doesnt mean that general concern about being under surveil-

lance is unwarranted. Over the last decade, we have observed how the United
States has undermined international
law: Pre-emptive war, torture in secret
centers, the Guantnamo detentions and
targeted killings come to mind. And now,
when we Germans see our own rights violated, we are expected to remain calm?
Besides, Germans being concerned
about Americas actions doesnt mean

that we hate America. In fact, we love


the country that gave birth to the American dream, and we are deeply
saddened because today it seems to be
but a shadow of its former self.
LARS LORRA, MAINZ, GERMANY
SHARE YOUR THOUGHTS

E-mail your comments and responses to


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| TUESDAY, AUGUST 6, 2013

INTERNATIONAL HERALD TRIBUNE

world news asia americas

Mom wants you married? So does the government


KOREA, FROM PAGE 1

moting the idea of dating parties in 2010.


Under the enthusiastic leadership of its
minister at the time, Cheon Jae-hee, it
held four parties that year that brought
together its workers and employees at
local corporations making a splash in
the news media. Ms. Cheon officiated at
the wedding of the first couple who met
at one. Featured in a magazine article before the wedding, the 31-year-old groomto-be thanked the government profusely
and wondered whether two children
would be enough to meet expectations.
Since then, sponsorship of the parties
has shifted mainly to ministry affiliates
and local governments, which can win
financial rewards for activities that promote marriage and childbirth. The municipal government that threw the party
Mr. Park attended has been named a
role model by the city of Seoul. One government-financed agency, the Planned
Population Federation of Korea, claims
a different kind of victory: By hosting
parties, it is working to undo its past

The government is working to


undo its past success when,
wary of population growth, it
encouraged vasectomies.
success when it encouraged vasectomies as a booming South Korea feared being held back by population growth.
Government officials are not the only
ones trying to replace the traditional
matchmakers whom many young
people consider increasingly old-fashioned. Corporations, fearing critical
shortages of workers in an aging society,
have begun ending informal bans
against office romances, with some now
paying for dating services for their
workers. College students have leapt online to set up mass dating events, including a much-publicized flash-mob blind
date last winter in central Seoul. And entrepreneurs have opened bars where
waiters serve as informal go-betweens.
There are online dating services as
well, but many young Koreans remain
uncomfortable searching for a partner
on their own. Most prefer to rely on the
companies to take their information and
make the match for them.
So far, though, the results of these efforts have been mixed. Korean society
is organized around group affiliations
hometown ties and school and corporate friendships so meeting a poten-

tial spouse without formal introductions


to merit family approval has proved difficult, even for those enamored with the
concept.
I usually date girls I get set up with
by my friends, but tonight I came to this
party to find someone naturally, said
Yang Sung-mo, 29, who tucked a dapper
purple handkerchief into his blazer
pocket to attend a bar event for singles.
Still, I doubt its going to work unless I
am introduced.
Until the 1980s, young people relied on
matchmakers and family connections to
find spouses, sociologists say. With so
many people living in ancestral villages,
it was easy for parents to find good
matches for their children. Among the
criteria considered: family status and
birth dates checked by fortune-tellers
for compatibility.
Those practices waned as industrialization started an exodus to South
Korean cities. Far from traditional networks, families turned to a growing
number of dating services that performed background checks. And young
people turned to friends whose role is
taken seriously enough that they receive gifts at weddings.
But in recent years, urban youth exposed to the West begun to complain
that even the less formal blind dates set
up by friends were stressful.
I want to meet someone I feel for,
said Lee Su-seong, 29, who waited
nervously with a group of friends at the
Blue Ketchup Bar in Seoul, where
waiters hand out Cupid cards from
admirers as an icebreaker.
The catch with such unorthodox approaches, said Hahm In-hee, a professor
of sociology at Ewha Womans University in Seoul, is that society has not been
prepared for such a radical change.
Approaching or socializing with
someone you dont know at all feels very
unfamiliar to Koreans, she said. It is
very awkward to mingle with someone
without knowing who the other persons
parents are, where they are from, etc.
Of all the new approaches now being
tried, the flash mob was the most famous failure. About 3,000 young people
showed up at sprawling Yoido Plaza, despite frigid temperatures. At 3:24 p.m.
their phones rang, signaling that the
date hunting could begin, but the crowd
suffered a case of mass jitters. The
event fizzled in 10 minutes, though the
organizer said that about 100 couples
managed to arrange a first date.
The heart of the problem, local officials

WOOHAE CHO FOR THE NEW YORK TIMES

Men and women trying to catch falling chocolates at a mall in Seoul, part of an event for single people. Solving the difficulties of the lovelorn has become something of a national concern.

and others say, is that South Koreans


have gotten ahead of themselves. As the
country modernizes rapidly, many of its
urban youth are chafing not only at arranged courtships but also at dates arranged by friends. Mr. Park avoids
matches set up by his family but says
countless blind dates arranged by his
friends have too often left him stammering through small talk with women who
are not interested in him, or vice versa.
Still, he and most other young South
Koreans are not yet comfortable with the
Western notion of casual dating as a path
to finding a spouse, and the idea of approaching a stranger to start a relationship sends many into spasms of shyness.
But social mores are slowly shifting.
Sociologists say young people are gen-

erally more open to premarital sex than


past generations were, and with most
living at home until they get married,
they have found ways to escape parents prying eyes. But those changes do
not diminish the need for proper introductions for serious relationships.
The difficulties in meeting potential
spouses have exacerbated an increasing tendency among South Koreans to
marry late. As young women have gotten better jobs, analysts say, many are
loath to give them up to shepherd children through a hypercompetitive education system and care for aging in-laws.
In 2011, the average age of a first marriage for South Korean women hit 29.14,
up from 24.8 in 1990; for men it jumped
to 31.8 from 27.9 in 1990. The birthrate

sank to 1.15 children per woman, the


lowest among the worlds most developed countries.
Young people and researchers say the
situation has worsened as South Koreans
born into greater wealth have become
more materialistic and status conscious.
Korean women are too picky with all
sorts of criteria, including which college
the guy goes to, and whether or not he
has a car, said Yu Tae-hyeong, who set
up the flash mob. Men, he said, are more
concerned with womens looks.
So far, several young people said, the
government matchmaking parties have
proved the best mix of old and new. Local officials perform thorough background checks, matchmaker style, but
once everyone is vetted, officials allow

them to mingle freely.


That is little comfort for the hapless
Mr. Park from the speed dating party.
In the end, he abandoned all caution
when the organizers asked whether anyone would publicly say whom they most
wanted to meet. He pointed to a woman
with an infectious grin whom he respected for not trying to hide her braces, then
knelt to present her with a bouquet
provided by the party planners.
She covered her face with her hands
and refused to give him her phone number. Later, she and her friends left with a
group of young men. Mr. Park was not
invited.
I guess I will continue the introduction thing through friends, he said later.
But I think praying is the only answer.

In eye of spending storm, a fighter


WASHINGTON

Pugnacious chairwoman
of Senate committee
faces a test of her grit
BY JENNIFER STEINHAUER

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Seven months into Senator Barbara A.


Mikulskis new assignment as chairwoman of the Senate Appropriations Committee, there is already a saying among
members: We loved Byrd, we respected Inouye, we fear Barbara.
It is not hard to see why. Ms. Mikulski,

THE FEMALE FACTOR

Madame Chairwoman

a Maryland Democrat, intimidates


people in a way that the two most recent
committee chairmen, Robert C. Byrd
and Daniel K. Inouye, did not. At one recent hearing, Ms. Mikulski even
ordered Senator John McCain, Republican of Arizona, to go back to his office
and read a bill so he could properly vote
on it and Mr. McCain, chastened but
cheerful, agreed. I will now try to carry
out my mission as assigned by the distinguished chairwoman, he said.
Ms. Mikulski, who legislates with two
parts accommodation and one part coercion, now finds herself at the center of
an upcoming spending brawl on Capitol
Hill. At 77, she is the longest serving
woman in Congress, the first woman to
lead its most august committee and the
fulcrum in the fight over a looming government shutdown that will dominate
Washington this fall.
With the pugnacious Ms. Mikulski at
the helm, the Senate Appropriations
Committee for decades a quiet outpost of bipartisan check-writing financing every corner of the government is
charged with heading off what could be
the first shutdown of Washington after
three years of near misses. Ms. Mikulski
has already begun by reviving the Appropriations Committee from an earlier
somnolence, when staff members directed much of the action and partisan
peace was kept by awarding senators
money for the pet spending projects universally denounced as earmarks.
You take your persona from the generation you come in with, Ms. Mikulski
said in an interview. And mine is a very
activist generation.
The question is whether she can forge
an agreement between the Senate,
House Republicans and the White
House, particularly when she is hobbled
by an earmark ban, an austerity movement in Congress and severe disagreements between the House and Senate
over how much money there is to spend
in the first place.
Ms. Mikulskis colleagues say she is

at heart a pragmatist, but if she and her


House Appropriations Committee counterpart, Representative Hal Rogers, Republican of Kentucky, cannot find a
spending level that both chambers
agree to by Oct. 1, the government will
run out of money and Washington
will find itself mired in the latest of
budget impasses that has sent the reputation of Congress to historic lows.
She is tough, she is determined, she
is prepared, Mr. Rogers said of Ms.
Mikulski. She is also accommodating.
But once she gets to a place, she is a bulldozer you cant move.
Ms. Mikulski was fuming last week
after Senate Republicans filibustered a
housing and transportation appropriations bill, leaving the spending fight
very much unresolved even as lawmakers raced for the exits and the airports for their five-week summer recess.
Are we back to gridlock? the obviously angry chairwoman asked, saying
the bills failure meant public safety
threats and fewer jobs.
Unlike her most recent predecessors,
Ms. Mikulski is more than happy to
raise her legislative voice. She relentlessly lobbies Senator Harry Reid, Democrat of Nevada and the majority leader,
to put her bills on the floor, a luxury of
attention that many appropriations bills
have not had in years.
I would guess if Senator Mikulski
goes to see the majority leader about
her bills, said Senator Lamar Alexander, Republican of Tennessee, laughing,
my guess is he drops what he is doing
to listen.
Ms. Mikulski does not so much walk
into places as plow through them, a
fireplug, standing 4 feet 11 inches, or 150
centimeters, swathed in brightly
colored blazers who is often a tad out of
breath. She straddles a line between jocular informality and institutional fealty.
A former social worker whose first
elected job was in the Baltimore City
Council (a move that appalled her father, who argued that he had spent a
lifetime selling baloney at the family
grocery to avoid such career choices for
his children), Ms. Mikulski was elected
to the House in 1976 and to the Senate a
decade later.
She still talks at length on the Senate
floor or in committee meetings about
her late father. She recalls how he paid
for her to attend Mount Saint Agnes College (now a part of Loyola University
Maryland), even after a devastating fire
in his store, and how he struggled with
Alzheimers disease. She keeps her
mothers kitchen table in her elegant
hideaway not far from the Senate floor,
because, she said, it reminds her of
home.
Before voting against a recent
amendment that would have reduced
federal subsidies for people buying
health insurance, she explained her no
vote for several minutes, citing what

she imagined her father would say:


Barb keeping fighting, youve got the
gavel, use it. But at the same time let me
and other guys like me buy that health
insurance.
Her values as a spender stem, said
several members, from her social activism, Catholic faith and shameless promotion of Maryland. She will talk for
hours about the need to protect the National Institutes of Health, both because
it is in her home state and because of her
fascination with health care.
She has no patience for attempts to
gut programs for the poor, and is eager
to pass her bills in part to show the difference between her priorities and
those of House Republicans. Our bills
will show the difference, she said.
But with the House and the Senate
deeply divided over what budget number to use the House is working off a
top line of $967 billion while the Senate
budget uses $1.048 trillion the ability
of the two chambers to come together to
agree on spending bills and avoid a government shutdown seems increasingly
elusive.
The Republicans act like sequestration is the new normal, Ms. Mikulski
said. I reject that it is.
For the 20 women in the Senate a
record the outcome of the looming

CHRISTOPHER GREGORY/NYT

Senator Barbara A. Mikulski, 77, is the


longest-serving woman in Congress.

She is also accommodating.


But once she gets to a place,
she is a bulldozer you cant
move.
spending fight will also be the latest test
of committee chairwomen, who now
number nine, another record. Ms.
Mikulski is the dean, mentor and organizer of monthly dinners the women hold
to talk shop and family.
When I was running, as a woman I
was really a novelty, she said, remembering how 1993 was branded The Year
of the Woman when a record seven
women became members of the Senate.
At the time, Ms. Mikulski said calling
it the Year of the Woman makes it
sound like the Year of the Caribou or the
Year of the Asparagus were not a fad,
a fancy or a year.

....

TUESDAY, AUGUST 6, 2013 |

THE GLOBAL EDITION OF THE NEW YORK TIMES

Style

PHOTOGRAPHS BY ADAM KUEHL/SCAD

At left, from left: Valentino, beaded silk-satin


slip dress; Carolina Herrera, silk faille and organza halter dress; Yves Saint Laurent, lace
with mousseline de soie lining, ankle-length
evening dress; Ulyana Sergeenko, long silk
peplum dress; Chanel, silk, Chantilly lace and
cotton organza robe de style; Oscar de la
Renta, silk shirt and silk taffeta flounced skirt.
Above, Chado Ralph Rucci, silk dress with
chenille embroidery. From the Little Black
Dress exhibition at the Mona Bismarck American Center in Paris.

The colorful history of the little black dress


PARIS

With a nod to elegance,


Paris exhibition explores
an icons past and present
BY SUZY MENKES

The little black dress is an iconic French


invention, right?
Created nearly a century ago by Coco
Chanel as emblematic of Gallic chic and
worn by Edith Piaf as she sang about
love and loss, the dress did make it to
America, perhaps most notably as
Audrey Hepburns costume in the 1961
movie Breakfast at Tiffanys. But that
dress was, of course, made by the Paris
couturier Hubert de Givenchy.
So it may come as a surprise in Little
Black Dress, an intriguing exhibition
in Paris at the Mona Bismarck American Center for Art & Culture (until Sept.
22) to encounter first a black lace dress
worn by the American designer Marc
Jacobs to the 2012 Metropolitan Museum gala by the Japanese designer Rei

Kawakubo of Comme des Garons and a


sleek dinner dress, worn by the artist
Rachel Feinstein, made by Mr. Jacobs.
Created at the Savannah College of Art
and Design (SCAD) in Georgia, the exhibition pits a framed Karl Lagerfeld example of the classic black Chanel dress,
as worn by Anna Wintour, the editor-inchief of American Vogue, against the
feisty cutaway Latex dress by Norma
Kamali, or even a body-revealing lace
and jet-beading creation from Tom Ford.
The man behind the artistic organization of textures, shapes and nuances of
shades, all shown against sanguine red
walls, is Andr Leon Talley. Long known
as a contributing editor at American
Vogue and now an editor-at-large for the
Russian version of Numro magazine,
Mr. Leon Talley used his connections
with high society to enrich the collection
that opened in in 2011 at the SCAD Museum of Art in Savannah.
And Mr. Leon Talley has no doubts
about the power of the little black dress
after years of attending haute couture
shows and advising socialites like Anne
Bass, a benefactor of the New York City
Ballet, as well as famous names from

Alicia Keys through Gwyneth Paltrow,


Diana Ross, Serena and Venus Williams
and Rene Zellweger.
This collection is far more than an
homage to past grandeur.
In every moment my desire was to
establish an invisible dialogue or narrative between dress, showcasing variety and how women thought of the little
black dress, Mr. Leon Talley said. He
chose a Chanel coatdress from Gloria
von Thurn und Taxis and decided to face
off a Galliano slip dress and a black Fortuny column that he says, is as modern
today as it must have been when it was
designed circa 1907. That piece came as
part of a donation to SCAD of the entire
wardrobe of the socialite C.Z. Guest.
The lore of the little black dress is that
it made its name in 1926, when an American Vogue illustration aligned Chanels
creation with the any-color-as-long-asit-is-black model-T Ford car.
Since the much-married social adventuress Mona Bismarck was the first
woman in the world to head a Best
Dressed list in 1933, it seems appropriate that the exhibition is in her former
Paris home on the Avenue de New York.

And that the mannequins grouped in


back and front positions (the better to
display a subtle plunge down the spine)
emulate guests at a grand party.
Mr. Leon Talley links this rearview focus to a moment at his high school senior prom, when the homecoming queen
asked him, between dances, to powder
her bared back, thus giving him a first
frisson of the spine as an erotic zone.
Throughout the show there are subtle
touches, as a lofty Madame Grs dress

The little black dress is


something to rely on to fill
you with confidence and
ease.
from 1977 is blown into movement by a
tiny electric fan, with the back, once
again, challenging the monastic look.
In the final room of the show, the models sit elegantly on couches in front of a
gilded mirror, with just a single cascade
of Oscar de la Rentas red frills signing
off with bravura the intensity of black.
Mr. Leon Talley said he imagined a

ball in Venice with the ladies gossiping


as they waited to be asked to dance. And
the donors names alone transport the
clothes to another world: a 1962 Chanel
dress from Baronne Batrice de Rothschild; or a lace Yves Saint Laurent
dress donated by the longtime front-row
fixture Deeda Blair.
But the show is not entirely given
over to studied elegance or a world as
charming and glamorous as it is definitively over.
There are hyper-modern dresses, like
the American designer Prabal Gurungs
plunge-front gown, Diane Von Furstenburgs synthetic lam wrap dress and a
Neoprene zip-front design from the
SCAD graduate Alexis Asplundh.
I think Americans take more freedom with it with more energy put into
young designers, there is a tilt toward
America in the show, says Molly Rowe,
director of Creative Initiatives at SCAD.
Although one senses that Mr. Leon Talleys heart is in Paris haute couture, there
are various modern American gowns, including classic dresses from Rodarte.
Azzedine Alaas zippered short dress,
metal chains swinging over a bifurcated

dress from the Nicolas Ghesquire years


at Balenciaga and Stella McCartneys
cutaway dress all offer fresh takes.
The little black dress is something to
rely on to fill you with confidence and
ease, says Ms. McCartney in the text of
the accompanying book, published by
Rizzoli.
So is the little black dress the last
haven for a conventional dresser, or an
opportunity to add a jolt of imagination
to a classic?
The answer in this exhibition is both. It
is as though the classic pieces from Cristbal Balenciaga or Yves Saint Laurent
are still the center of a fashion world
where imagination in fabric, cut and the
way the dress is worn add that extra jolt.
Miuccia Prada expresses the reality
of timeless yet contemporary fashion,
when she says in the book: To me,
designing a little black dress is trying to
express in a simple, banal object, a great
complexity about women, aesthetics,
and current times.
ONLINE: FROM THE FASHION ARCHIVES

Read previous articles by Suzy Menkes.


global.nytimes.com/fashion

10

....

| TUESDAY, AUGUST 6, 2013

INTERNATIONAL HERALD TRIBUNE

Culture

theater art

Hollywood comes calling on Broadway


LOS ANGELES

After hits like Wicked,


film studios and theaters
are eager to profit
BY PATRICK HEALY

To understand why Hollywood is moving aggressively into making musicals


for Broadway, just look out the eighthfloor office window of Jimmy Horowitz,
the president of Universal Pictures.
On the studio lot below, along a route
where trams of tourists roll by, is a
black-and-green poster for the hit musical Wicked. Universal is the majority investor in the show, which has
grossed $3 billion since 2003 from productions in New York, Chicago, London,
Tokyo and dozens of other cities. More
to the point: Wicked is on track to become the most profitable venture in the
101-year history of Universal, Mr.
Horowitz acknowledged in an interview, more lucrative than its top-grossing movies like Jurassic Park and
E.T. The show is an open-ended juggernaut, charging 10 times more per
ticket than movie theaters do.

From movie to musical right, a


scene from the musical version of
Rocky. Top right,
the movie The
Sting. Lower
right, a scene from
the musical version
of Kinky Boots,
and right, the Disney film Aladdin.
Below, Charlie
and the Chocolate
Factory on stage,
and below right, a
film version. The
cast of the film
Animal House,
below far right. A
musical version is
in the works.

MORRIS MAC MATZEN

HELEN MAYBANKS

UNIVERSAL PICTURES

DISNEY THEATRICAL PRODUCTIONS

SARA KRULWICH/THE NEW YORK TIMES

WARNER BROTHERS PICTURES

UNIVERSAL PICTURES

strategy.
At the heart of the Fox deals is a recognition by the studio and you hear
this all across Hollywood that most
filmmakers dont really know how to
make great stage musicals on their own.
The most successful one is Scott Rudin,
an Academy Award winner who is one
of the lead producers of the smash hit
The Book of Mormon. Disney is alone
in having an in-house theatrical division
that makes its own musicals, led by another top producer on Broadway,
Thomas Schumacher.
Studio executives say they are counting on Broadway veterans to tell them,
among other things, whether characters like Euphegenia Doubtfire or Bluto
Blutarsky can be made to sing and if
so, how that should be done. MetroGoldwyn-Mayer, for instance, has some
approval rights in the musical version of
Rocky over casting and certain production elements but left most decisions
to the creative team, led by Mr. Timbers.
They definitely never weighed in on
content, including the climactic fight
between Rocky and Apollo Creed, Mr.
Timbers said of MGM. Given that the
fight is a famous moment in the
Rocky franchise, the stage scene
could have risked becoming an embarrassment for the brand, but Mr. Timberss use of stage magic has drawn
praise from critics and Broadway producers who have seen the musicals
world premiere in Hamburg, Germany.
A movie can have so many more
scenes than a musical, and so much can
be achieved with close-ups and other
cinematic devices, so we had to think
carefully about which scenes to keep
and make theatrical and what other moments could be turned to song, Mr.
Jinks said. In the movie, theres a
scene where time stops and the main
character walks through a circus tent
a mesmerizing scene. For the musical,

Hollywood and Broadway


are trying to make better
shows together.
Wicked opened our eyes to the possibility of what can happen when you
have a show that becomes a perennial,
said Mr. Horowitz, whose studio initially planned to make the 1995 novel
Wicked into a film instead and now
expects to make a movie of the musical
someday, expanding the franchise. I
dont think wed appreciated what those
revenue streams could be.
Now Universal is turning Animal
House into a musical, and Back to the
Future, and The Sting may be next.
Twentieth Century Fox is eyeing Mrs.
Doubtfire, The Devil Wears Prada
and Waitress. Sony is developing
Tootsie. Warner Brothers has
Charlie and the Chocolate Factory in
London and is talking to producers
about a possible musical version of the
Channing Tatum flick Magic Mike.
Once again this season on Broadway
is dominated by screen-to-stage adaptations like Rocky, The Bridges of
Madison County, Bullets Over Broadway and Big Fish, all of which have
varying degrees of studio involvement.
The musical Aladdin is coming this
winter, adapted in-house by Disney,
which has the biggest screen-to-stage hit
of all : The Lion King, with its worldwide gross of $5.4 billion since 1997.
If the Hollywood frenzy raises questions about originality has theater become just a derivative cog in brand machinery? the stage adaptations may
simply be too financially rewarding for
the studios and Broadway to cut back.
Adaptations can be artistically creative:
The new musical American Psycho
(based on a book that became a film) is
about a serial killer, while this years
Tony Award winner for best musical,
Kinky Boots, is based on a little-known
British movie and has the first Broadway score by the pop star Cyndi Lauper.

ZADE ROSENTHAL/COLUMBIA PICTURES

But what does it take for a movie to


become a blockbuster musical?
Thats the puzzle that Hollywood executives are trying to crack as they
mine their movie catalogs to squeeze
more profits from them, a hands-on
strategy that represents a significant
shift, after decades in which studios
passively signed away film rights to
theater producers who did most of the
work.
What Hollywood is finding is that
there are no easy formulas: No
Wicked 2 or other sequels; no surefire star vehicles (Nathan Lanes departure killed the Addams Family musical on Broadway); and no superhero
action fluff that is easy to stage (hello,
Spider-Man). In other words, dont expect to see the biggest moneymakers go
to Broadway anytime soon, studio executives say no Avatar: The Musical,
no singing Wookies.
Were looking through our 4,000
movies for the stories with the strongest
emotional resonance, for stories that
feel like they want to be sung onstage,
said Lia Vollack, who oversees theater
for Sony and is also president of the
companys worldwide music division.
And I wouldnt rule out any genre
though a horror musical could be challenging, and superheroes really do rely
on certain types of visuals that are
pretty cinematic.
What the studios are confronting is

PAUL KOLNIK

BARRY WETCHER/20TH CENTURY FOX

the tricky alchemy of stage adaptation:


finding films and books that have the
DNA that might spawn a musical, then
matching them with artists who have a
vision for delivering quality onstage
and quantity at the box office.
Most Broadway musicals throughout
history have been adaptations, although complaints about the movieturned-musical have been a relatively
recent trend. The first nine winners of
the best-musical Tony were based on
books and plays, starting with Kiss
Me, Kate in 1949; the first best-musical
Tony winner inspired by a movie was
Applause in 1970, drawn from the 1950
Fox movie All About Eve.
Not that relying on a brand-name

Anne Hathaway
and Meryl Streep in
The Devil Wears
Prada, above.
Next row up, left,
Alison Lohman and
Ewan McGregor in
the film Big Fish,
and right, the musical with Norbert
Leo Butz and Kate
Baldwin. Above
right, Christopher
Lloyd and Michael
J. Fox in Back to
the Future.

movie has ever been a guarantee. About


75 percent of shows lose money on
Broadway, including many movies that
were turned into musicals, like the recent flops Ghost and 9 to 5.
Sometimes you dont get artists who
jell, said Mark Kaufman, one of the executives overseeing theater ventures at
Warner Brothers. Sometimes the material doesnt translate to stage. Sometimes audiences complain, Why arent
there original musicals? Whats happening now is, Hollywood and Broadway are trying to make better shows together.
To that end, Universal invested in the
recent Broadway musicals Bloody
Bloody Andrew Jackson and The
Gershwins Porgy and Bess to cultivate ties with their rising-star directors,
Alex Timbers and Diane Paulus. Last
summer, Sony executives bought a
stake in the company of the Broadway
producer Scott Sanders (The Color
Purple) to give him a first-look deal for
their film catalog, beginning with the
Tootsie project. Last month, Fox announced a partnership with one of
Broadways most successful producers,
Kevin McCollum (Rent, Avenue Q,
In the Heights), to help turn 9 to 12
movies into stage musicals. Fox executives also tapped Isaac Robert Hurwitz
of the New York Musical Theater Festival to advise them on their projects with
Mr. McCollum and on theater producing

UNIVERSAL PICTURES

Andrew has a written a song called


Time Stops, and it hits you emotionally
in a way only musical theater can.
For Mr. Horowitz of Universal, the
2000 film Billy Elliot, about a British
boy who wants to dance ballet, had several key ingredients that might make
a good musical, like a lead character
with buried emotions that could be
rendered in song, and a plot full of big
dreams and wishes coming true.
But it took theater artists like the director Stephen Daldry and the composer Elton John to turn the movie into
a wholly credible song-and-dance show,
he said, by coming up with the juxtaposition of the would-be ballerinas and the
struggling coal miners in Billys town.
They took the underlying material
and reinvented it so completely that the
audience had a completely different experience than the one you had watching
the movie, Mr. Horowitz said. Billy
Elliot opened on Broadway in 2008 at a
cost of $18 million, won the Tony Award
for best musical and turned a profit, but
it ended up closing earlier than expected in 2012 because of its high running expenses and a decline in ticket sales.
Even if Billy Elliot fell short of commercial expectations on Broadway, Mr.
Horowitz still said he views the musical
as a model for Hollywood adaptations.
While he declined to discuss Animal
House, finding the right artistic team
THEATER, PAGE 11

Sonic boom: Museum exhibitions embrace work made for ears


NEW YORK

Sound art goes


mainstream with shows
at MoMA and Met
BY BLAKE GOPNIK

Shhh. Listen.
Nothing?
Listen again.
Note the sound of your computers
fan amid distant sirens. Hear your
spouse in the next room, playing the
Bowie channel on Spotify while chatting
on the phone with your mother-in-law.
Farther off, a television is tuned to the
news and a stereo plays Bach, while a
mouse skitters inside a wall.
And know that every one of those
sounds can now be the subject of art, just
as every vision we see and imagine,
from fruit in a bowl to the color of light to
melting clocks, has been grist for painting and sculpture and photos. Sound art
has been on the rise for a decade or two,
but it may have at last hit the main-

stream: On Saturday, the Museum of


Modern Art is opening its first full sonic
survey, Soundings: A Contemporary
Score, while two major sound installations are to go up in New York in the fall.
The art of sound questions how and
what we hear, and what we make of it,
the curator Barbara London writes in
her catalog essay to the Modern show
which means the movement has purchase on a lot that matters. Perched in
an office high above MoMAs garden,
where her exhibition will insert stealthy
recordings of bells, Ms. London explained that artists are more than ever
drawn to sound art, maybe because it
sits on the exciting double cusp, as she
said, of both music and gallery art. Her
new show (or should we call it a
hear?) reflects the apogee, as she
put it, that sound art has now reached.
Ms. Londons survey will include
those recorded bells, by the American
soundster Stephen Vitiello, as well as
recordings made near Chernobyl by
Jacob Kirkegaard, a Dane, and a grid of
1,500 small speakers, each playing a different tone, by the young New Yorker
Tristan Perich. It will also feature the

Glasgow-born Susan Philipsz, whom


the larger art world has taken to heart.
At the Modern, Ms. Philipsz will be reprising a 2012 work from Germanys
Documenta, the twice-a-decade festival
that is one of the worlds most prestigious artistic events. Her Study for
Strings riffs on an orchestral piece
composed in 1943 at the Theresienstadt
concentration camp for musicians there.
For the public, sound art it still a fairly
new and also a very, very accessible medium, said Tom Eccles, the curator of a
new Philipsz commission this fall in New
York. On a very basic, basic level, he
added, sound is one of our first experiences in the uterus, in fact.
Ms. Philipszs new piece, called Day
Is Done, will be the first permanent
work of contemporary art on Governors
Island, a former military site in New
York Harbor whose public spaces are
being revamped with a budget so far of
$75 million. Ms. Philipsz is mounting
four old-fashioned trumpet speakers
the kind youd see in an old ballpark
across the facade of an old barracks, and
for an hour every evening, they will
broadcast the notes of the bugle call

DEMETRIUS FREEMAN/THE NEW YORK TIMES

Susan Philipsz on Governors Island to examine the speakers for her latest sound piece.

Taps. The tones of the ghostly melody


will pass from speaker to speaker, fanning out across the islands open spaces.
Mr. Eccles pointed out that with a
piece like Day Is Done, you dont
have to recognize it as art, immediately
meaning that any knee-jerk resistance
to contemporary art is less likely to kick
in. A sound work allows you to do something quite complex that might be unacceptable in another medium, he said.
Theres yet another ambitious sound
piece about to open in New York. On
Sept. 10, the Metropolitan Museum will
present Forty Part Motet, an installation by the Canadian Janet Cardiff that
may be one of the best works, in any medium, of the last decades and the first
work in sound at the Metropolitan. A
piece like Ms. Cardiffs opens peoples
eyes to a different art form that they
wouldnt expect to see at the Met, said
Anne Strauss, the projects curator.
Its something we can provide more
easily, than, say, performance art.
We were meeting far uptown in Manhattan, in a 12th-century chapel at the
heart of the Mets Cloisters branch, now
SOUND, PAGE 11

....

TUESDAY, AUGUST 6, 2013 |

THE GLOBAL EDITION OF THE NEW YORK TIMES

11

music theater books culture

Did you
hear that?
It was art
SOUND, FROM PAGE 10

celebrating its 75th year as a home for


medieval art. The 40 speakers of Cardiffs
piece will be installed in a ring in that
chapel, each one transmitting the sound
of a single musical part from the choral
extravaganza Spem in Alium, composed around 1570 by Thomas Tallis. Ms.
Cardiffs piece manages to take one of the
most imposing masterpieces of Western
music and reduce it to modest human elements. As you sidle up to any one speaker, the single voice you hear seems frail
and at sea, and that stands in touching
contrast to the grand effect that comes
when you stand in the works center and
hear all 40 parts combined. Wherever
Forty Part Motet gets installed, a visitor or two often leaves in tears.
The market has noticed sound arts
achievements. I kind of resigned myself
that I would never make any money,
Ms. Philipsz said. In fact, shes now doing
fine. She sold all three copies of her first
installation at Tanya Bonakdar, the New
York gallery that took her on in 2007. According to the gallery director, Ethan Sklar, her piece in the show at the Modern,
also in an edition of three, is priced at almost $150,000. Mr. Sklar spoke of the appeal of Ms. Philipszs art to collectors
and institutions who are looking for the
strongest and most challenging work.
The mainstreams embrace of sound
art may mask something peculiar: that
even as the field reaches new heights,
its also in crisis. Art-trained figures like
Ms. Philipsz and Ms. Cardiff, who build
work around the sounds that we care
most about and who resist the whole
idea of a coherent genre called sound
art are up against a sonic old guard,
sometimes including younger figures,
that one artist has referred to as the
honk-tweet school.
Aligned with experimental music
rather than visual art, the honk-tweeters
are interested in strange beeps and buzzings for their own sakes. They craft what
the sound artist, theorist and blogger
Seth Kim-Cohen refers to as purely cochlear, rather than fully mindful, sound art.
In June, Mr. Kim-Cohen chided the
survey at the Modern for including such
work, which he described as the sonic
equivalent of Op Art, a movement in
painting that does not demand (or
merit) serious critical response, as he
has written. Surely, he blogged, if the
(visual) art world is now willing to embrace sound, it should do so according to
the same criteria of quality and engagement that it demands of other media.
Caleb Kelly, a scholar who recently
published a book called Sound, compiling a range of essays on the art form,
said he believes that pieces like Ms.
Cardiffs Motet, or the riffs on Hollywood soundtracks by the Swiss art star
Christian Marclay, will still matter in a
century, whereas todays honktweeters (dial twiddlers, Ms. Philipsz
calls them) will probably disappear.
Sound artists like to point out that
while you can close your eyes to an image you hate, you cant close your ears
to a noise. That gives them power but
also puts them at risk. If a honk or a
tweet does no more than annoy, visitors
will vote with their feet.

A mix of sounds at Salzburg


SALZBURG

Director draws on Verdi,


Wagner and Braunfels at
annual festival in Austria

THEATER, FROM PAGE 10

An AL PACINO movie broke out in the


middle of a concert by the band CHICAGO,
with thousands of fans serving as extras.

ONLINE: MORE ON FILM

News, reviews and interviews from the


arts world. global.nytimes.com/arts

News and reviews from around the


world. global.nytimes.com/movies

MUSIC REVIEW

son for an outsider to visit that sleepy


city: the Wagner festival. There are
amenities for visitors but not much else
to do.
But Salzburg is a popular stop for
travelers, and this quaint city offers
tourist attractions and gift shops awash
in Mozart memorabilia. And artistically
the Salzburg Festival is the ultimate
high-prestige international arts festival, a well-financed and ambitious endeavor. Tickets are expensive, especially for opera productions, with a top
price of about $770. Top seats at
Bayreuth go for about $370, though the
issue there for most Wagner lovers is
not the cost but the limited availability.
The programming of the Salzburg
Festival under Alexander Pereira, its
current artistic director, is typically
wide-ranging. The bicentennials of
Wagner and Verdi are being celebrated
with new productions of Wagners
Meistersinger von Nrnberg (which
opened on Friday), and Verdis Falstaff and Don Carlo, among other
performances. Harrison Birtwistles
Gawain is being presented, and Mr.
Pereira has lined up a series of major
commissions for the next several seasons.
On Thursday night, there was a special one-time concert performance of a
rarity: the German composer Walter
Braunfelss Jeanne dArc, presented
at the spacious, acoustically vibrant
Felsenreitschule, built in 1693, a theater
literally cut from a mountain quarry.
Originally a riding school, it has been
used for opera productions since the
late 1940s.
Jeanne dArc, composed between
1938 and 1942, was never performed
during Braunfelss lifetime (1882-1954).
The Austrian conductor Manfred Honeck, best known to Americans as the
music director of the Pittsburgh Symphony Orchestra, championed Jeanne
dArc and gave the premiere in Stockholm in 2001, a performance later released as a live recording.
There were two imperatives for inviting Mr. Honeck to present this work,
which received an inspired performance from the ORF Symphony Orchestra of Vienna, the Salzburg Bach
Choir, the Salzburg Festival and Theater Childrens Chorus and an impressive
cast led by the soprano Juliane Banse,
who gave a ravishing account of the
title role. For one, this opera is representative of a mid-20th-century style of
composers (including Hindemith,
Schreker, Pfitzner and Zemlinsky) that
has been viewed as conservative in the

Cameras were wheeled onstage during


intermission of the groups show at the
Greek Theatre in Los Angeles to film a
scene from Mr. Pacinos movie Imagine, in which he plays an aging rock star
named Danny Collins. The crowd chanted
the name of Mr. Pacinos character as the
73-year-old actor walked on stage to sing
Hey Baby Doll in a black suit. Mr. Pacino returned during Chicagos encore
and sang and danced to their hit 25 or 6
to 4. For a shy guy from the South
Bronx, this has been great, he said. (AP)
The COEN BROTHERS are turning
Fargo, their Oscar-winning film set in

PETER CAPALDI, DENZEL WASHINGTON, MARK WAHLBERG, ELLEN DEGENERES

A medium-budget star vehicle dominated North American movie theaters


over the weekend, while an animated sequel arrived on tiptoe. 2 Guns (Universal Pictures), which cost about $60 million
to make and stars DENZEL WASHINGTON and
MARK WAHLBERG, took in an estimated
$27.4 million, according to Hollywood.com. The Wolverine (20th Century Fox) was second, selling about $21.7
million in tickets, for a two-week domestic
total of $95 million. Smurfs 2 (Sony Pictures Entertainment), which cost more
than $100 million to make, was a weak
third, taking in about $18.2 million.

ONLINE: CULTURE AT LARGE

It always takes some mental adjustment to go from the Bayreuth Festival


in Germany to the Salzburg Festival
here, as I did on Thursday. Unless you
are a resident of Bayreuth or a student
at its university, there is only one rea-

SILVIA LELLI

The ORF Symphony Orchestra of Vienna and the Salzburg Bach Choir performing Braunfelss Jeanne dArc at the Salzburg Festival.

context of the eras modernism. But as


we move away from such reductive notions of conservatism, there has been a
resurgence of interest in composers
from that heritage.
The other reason to bring Jeanne
dArc to Salzburg was to do delayed
justice to Braunfels, a respected composer, pianist and educator in his day,
who achieved popular success with appealing works like his 1920 opera Die
Vgel (The Birds). Braunfels was
admired by Hitler until the Nazi regime
realized that he was half-Jewish and
branded his music as degenerate in the
1930s. Braunfels and his wife managed
to remain in Germany during the war,
and their three sons were drafted into
the Wehrmacht. After the war, he regained his position as the head of the
Cologne Academy of Music. His
greatest artistic disappointment was
never hearing Jeanne dArc performed.
Braunfels attended the 1938 premiere
of Hindemiths opera Mathis der
Maler, an experience that inspired
him to begin work on Jeanne dArc.
The operas German libretto, also by
Braunfels, is based on German translations of historical French and Latin documents regarding Joan of Arcs trial.
The composer was also influenced by
George Bernard Shaws play Saint
Joan.
Braunfels comes across in this score

rural Minnesota, into a TV series, with

BILLY BOB THORNTON in the lead role, BBC

News reports. The 1996 film starred

FRANCES MCDORMAND as a pregnant police

chief trying to solve a bizarre series of


crimes. She won an Oscar, while Joel and
Ethan Coen received the best original
screenplay award. The 10-part series, for
the American channel FX, will have new
characters and a new scenario.
The American talk show host and
comedian ELLEN DEGENERES will host the
Oscars for a second time, BBC News reports. I am so excited to be hosting the
Oscars for the second time, Ms. DeGeneres was quoted as saying. You
know what they say the third times
the charm. Ms. DeGeneres was the
M.C. at the 79th Academy Awards in
2007, seen by an audience of 39.9 million.
She also received an Emmy nomination.
PHOTOGRAPHS: AP, AP, REUTERS, REUTERS

as in thrall to Hindemith. The language


is essentially tonal, with lush, thick
chromatic harmony and more austere
modal passages that evoke the heritage
of sacred music. (Braunfels was a
staunch Roman Catholic.) The vocal
writing deftly mixes urgent arioso for
dialogue with magisterial melodic
flights.
There are compelling bursts of agitation in the score, especially in the colorful orchestral writing. Still, Braunfelss
appealing, earnest musical language

There was a single staging of a


rarity: Jeanne dArc.
lacks that extra originality and invention. Part of the problem, though, may
be the structure of the work, which
Braunfels subtitles Szenen
(Scenes) from the life of St. Joan.
The story is set in 1428 France. A young
peasant, Joan hears divine voices that
tell her to lead a mission to liberate the
city of Orlans, besieged by the English, and take the dauphin to Reims for
his coronation as king.
But some scenes are dramatically
static and overextended. In Scene 2, for
example, Joan, entrusted by her father
to the Knight of Baudricourt for her
protection, wants to leave on her mission. But the knight (the strong baritone Martin Gantner) fears for her

safety. He is in a muddle and rattles on


and on about it. If Braunfels had written a libretto with a continuous narrative, he might have been compelled to
tighten the scene and get the story
moving.
It was revealing that the most sumptuous and exciting passages in Jeanne
dArc, which lasted three hours with
one intermission, came when the opera
turned briefly into oratorio, and the intricate ensembles of the large cast were
joined by the shimmering orchestra
and full choruses singing ecstatic and
celestial music.
Ms. Banse brought poignant lyricism
and calmly heroic certitude to Jeanne.
The charismatic tenor Pavol Breslik excelled as the dauphin. Among the other
fine singers, some doubling in roles,
were the tenor Bryan Hymel, making
divine pronouncements as the
Archangel Michael, and the baritone
Thomas E. Bauer. And fresh from his
performance as Loge in the confounding and mostly terrible new production
of Wagners Ring at Bayreuth was
the busy tenor Norbert Ernst, here as
Colin, a shepherd.

The painful rhythms of a modern China


The Dark Road. By Ma Jian. Translated by

Flora Drew. 375 pages. The Penguin Press.


$26.95.

For a Song and a Hundred Songs. A Poets


Journey Through a Chinese Prison. By Liao
Yiwu. Translated by Wenguang Huang.
404 pages. New Harvest/Houghton Mifflin
Harcourt. $26.
BY EMILY PARKER

In exploring the darker aspects of


Chinese life, Ma Jian and Liao Yiwu
speak mostly to the outside world. The
work of both writers has been banned
in China, and neither lives in his native
land. Mr. Ma is a longtime resident of
BOOK REVIEW

man. Mr. Capaldi will inherit the role of


the Doctor from MATT SMITH, who has
portrayed the character since 2010.

The Salzburg Festival runs through


Sept. 1; salzburgerfestspiele.at.

has proved a challenge. The musical


group Barenaked Ladies recently left
the project, replaced by Broadway composer David Yazbek, and the playwright
Michael Mitnick is taking another crack
at his script, according to news reports.
The director remains Casey Nicholaw,
who showed with The Book of Mormon that he has a talent for blending
raunchy humor with characters both
outrageous and sweethearted pure
Animal House.
Putting together teams can be arduous, whether for movies or stage musicals, but the front-end development costs
for musicals tend to be far lower, often in
the hundreds of thousands of dollars
compared with millions for movies. By
Hollywood standards, too, stage musical budgets are small $5 million on the
low end, $20 million on the high, compared with $100 million or considerably
more for movies.
Deep-pocketed studios are, meanwhile, a veritable godsend for musical
producers, who are otherwise forced to
line up dozens of investors who write
checks of $50,000 or more. A very
powerful financing partner a multibillion-dollar company as a partial funding source gives you a tremendous
leg up to get work in development and
get shows onstage, said John Davis, a
veteran film producer at Fox (The
Firm, Predator).
Mr. McCollum cited Mrs. Doubtfire
as an example of the potential risks and
rewards of studio-driven adaptations.
Fox executives said they were eager to
develop it into a musical and perhaps finance 25 percent or more of the costs,
and Mr. McCollum noted that the plot
seemed tailored for Broadway audiences, as a family-oriented comedy
about a man who poses as a female British housekeeper so he can spend time
with his children amid a custody battle.
At the same time, Mr. McCollum said,
the movie had a memorable star turn by
Robin Williams, and not so long ago (it
was released in 1993), raising the question of whether audiences would
warmly embrace another actor. That
was one problem faced by the 1996 musical Big, spun off from the Tom
Hanks movie without much impact on
Broadway. It is certainly a test for
Rocky, a $15 million production that
in some ways is one of the most surprising ventures of all. A beloved film like
Rocky could stretch the tolerance
and patience of theatergoers.
Even the original star of Rocky,
Sylvester Stallone, who is one of the musicals producers, acknowledged as
much.
Some movies work perfectly as
movies, and you dont want to mess
around with them, Mr. Stallone said in
an interview after the Hamburg opening. But I think the Rocky musical is
really original, not some derivative silly
show. We know, and the studio knows,
that audiences will have the final word,
though.

BY ANTHONY TOMMASINI

PEOPLE
The Scottish actor PETER CAPALDI will
be the latest actor to star on Doctor
Who, the BBCs five-decade-long adventure series, and will play the 12th official incarnation of a time-traveling,
shape-shifting character known simply
as the Doctor. The BBC made the announcement during a live program that
was watched by viewers around the
world. The choice of Mr. Capaldi, an actor perhaps best-known for his role as a
foul-mouthed bureaucrat in the film In
the Loop, was a disappointment to
those who hoped the character might be
played by someone other than a white

Hollywood
turns toward
Broadway

London. Mr. Liao crossed into Vietnam


in 2011 and now lives in Berlin.
Mr. Mas previous books include the
Tiananmen-era novel Beijing Coma
and Stick Out Your Tongue, a collection of stories about Tibet. His latest,
The Dark Road, uses a fictional narrative to depict the tragic real-life effects
of Chinas one-child policy, initiated in
1979 to control population growth. Having traveled extensively in rural China,
he says he learned of hundreds of victims of forced abortions or sterilizations.
Meili and Kongzi, the married couple
at the center of his novel, become family planning fugitives when they try to
have a second child. After local officials
begin a crackdown in their village,
Meili and Kongzi take their first child, a
daughter named Nannan, and find
refuge on a houseboat on the Yangtze
River. But this is only a temporary stop.
Meilis dream destination is a place
called Heaven Township, where the
pollution is said to be so great that its
impossible to become pregnant. Meili
wants a life in which she can earn
enough money to display red-painted
toenails under elegant leather sandals. Her husband is determined to
have a male heir.

Chinas one-child policy, often discussed in the rather dry terms of population or abortion statistics, is a ripe subject for a novel. Unfortunately, too much
of The Dark Road reads like an op-ed
column. The Family Planning policy is
a protracted war waged against women
and children, Kongzi informs his
daughter, not the most natural-sounding
remark to make to a child. The problem
isnt simply the translation (by Mr. Mas
British partner, Flora Drew), but the authors apparent conviction that only unrelentingly straightforward prose will
get his point across.
Some of the novels scenes are horrific. Meilis pregnancy is aborted at the
order of family planning officers, and
she is forced to watch as her newborn
boy is strangled and put into a plastic
bag. Kongzi persists in trying to impregnate his wife. When she gives birth
again, to another girl, he takes the baby
away, most likely to put her up for sale.
Meilis body is constantly being invaded,
if not by her husband then by the state.
Yet rather than let this powerful
theme unfold naturally, Mr. Ma insists
on spelling it out. You force me to get
pregnant, Meili tells Kongzi, then you
take my baby from me. Youre worse
than the Communist Party. On the next
page, Meili notes that women dont
own their bodies: Their wombs and genitals are battle zones over which their
husband and the state fight for control.
The Dark Road is a passionate
book about an important topic, but it
would work more effectively if it veered
off-message long enough to let readers
lose themselves in the story.
The poet Liao Yiwus memoir, For a
Song and a Hundred Songs, reads
more like a novel. An earlier book, The
Corpse Walker, gathered portraits
from the lower rungs of Chinese society; his new one is based on the four
years he was imprisoned after writing a
poem, Massacre, inspired by the
events at Tiananmen Square, and helping to make a film, Requiem.
The memoir, which has already won

ELISABETH BERNSTEIN

FLORA DREW

China banned Liao Yiwu, top, and Ma Jian.

a major award in Germany, is likely to


be applauded by human rights groups
as a fierce indictment of the Chinese
government. In many ways, it is. But to
cast Mr. Liaos work in such simple
terms is to overlook the way it also portrays the cruelties ordinary Chinese inflict upon one another.
To his credit, Mr. Liao doesnt paint
himself as a martyr or an angel. He
slaps his wife and cheats on her. When
she breaks a leg, he leaves her alone and
goes off to seek adventure. He was
largely indifferent to the Tiananmen
protests until the point of the violent
confrontation in early June 1989, when
he decided to go down the heroic path
by writing and recording himself reading Massacre.
The poem is a blunt-edged depiction
of evil soldiers. One line reads: Open
fire! All barrels! Blast away! It feels so
good! But Mr. Liao later realizes that
brutality isnt confined to soldiers. He
watches as a young woman who has
stolen a peach is sexually assaulted by
several men, encouraged by onlookers.
In prison, the officers are hardly blameless the books title refers to an epis-

ode in which Mr. Liao is forced to sing a


hundred songs as an officer prods him
with an electric baton but some of the
most harrowing descriptions are of prisoners torturing one another. An inmate
gives Mr. Liao a menu of physical torments to choose from, ranging from the
disgusting to the excruciating. When
Mr. Liao arrives at the Song Mountain
Investigation Center, he discovers a
system that resembles modern
slavery. The officer in charge appoints
a notorious robber to be the chief of the
cell, which is divided into upper, middle
and lower classes. Members of this last
group, known as slave thieves, are
made to empty toilets and perform
sexual favors. Much as in outside society, Mr. Liao observes, the chief could
use scented napkins to wipe his butt,
but slave thieves had to resort to using
wrapping paper or old newspapers.
The translation, by Wenguang
Huang, includes dialogue that often succeeds in capturing the rhythm of spoken
Chinese. Mr. Liaos writings were concealed from the authorities before being
smuggled out of the country. After his
release from prison, he became even
more disillusioned with his countrymen, concluding they were more concerned with money than with dissent:
Many Chinese people, including members of my family, have long since lost
interest in whether my case is re-evaluated or not. It seems that all they
wanted was for me to get a real job.
Mr. Liao offers no prescriptions for
Chinas ills. He simply wants to describe the world as he sees it. Unfortunately, I am not capable of elevating human feces to a higher level and imbuing
it with political, historical and religious
meaning, he writes.
Emily Parker is a fellow at the New
America Foundation. She is writing a
book about the Internet and democracy.
ONLINE: THE LITERARY LIFE

Reviews, profiles of authors and more at


global.nytimes.com/books

12

....

| TUESDAY, AUGUST 6, 2013

INTERNATIONAL HERALD TRIBUNE

Sports

golf tennis baseball

SPORTS

Solheim Cup
seems to be
a bit behind
the times

Roundup
N . F. L .

Art Donovan dies; Lineman


gained fame telling his stories
Art Donovan, the lineman whose hilarious stories about his football career enabled him to maintain his popularity
long after his election into the Pro Football Hall of Fame, died Sunday night in
Baltimore. He was 89.
Donovan made a name for himself as
a feisty defensive tackle for the Baltimore Colts, helping the team to championships in 1958 and 1959. He also
spent single seasons with the New York
Yanks and Dallas Texans in a career
that lasted from 1950 through 1961.
Voted into the Hall of Fame in 1968,
Donovan was an outstanding lineman
and an even better storyteller. Long
after his career was over, Donovan
made a living on the talk-show circuit,
weaving yarns about the National Football Leagues good old days as he put
it, When men were, well, men. (AP)

GOLF ST. ANDREWS, SCOTLAND

Womens competition
fails to include crucial
portion of players: Asians
BY KAREN CROUSE

Policy prohibits most purses


and other bags at games
The National Football Leagues new
policy banning bags that are not clear
and that can hold more than a gallon
was introduced with relatively few hiccups at the Hall of Fame game in Canton, Ohio.
There were no lines at the secondary
perimeter checkpoints Sunday as security members ensured that fans did not
enter Fawcett Stadium with banned
items like backpacks, diaper bags, coolers, briefcases, fanny packs, seat cushions, computer bags and camera bags.
The only bags that can be taken into
game venues are clear plastic, vinyl or
PVC that can hold about a gallon, or a
little less than 4 liters.
In general, fans approved of the new
procedures and said they were aware
of the new rules. But a few women were
upset they could not take their purses
into the stadium. (AP)

MATTHEW STOCKMAN/GETTY IMAGES-AFP

Juan Martn del Potro returning a shot as he beat John Isner to win the mens final of the Citi Open in Washington. The tournament is a joint A.T.P-W.T.A. event, but the men get most
of the time on the bigger courts. Del Potro won nearly $300,000 for his title, while Magdalena Rybarikova claimed only $40,000 for beating Andrea Petkovic in the womens final

A gender divide at shared event


TENNIS WASHINGTON

TENNIS

2011 U.S. Open champion


wins first title in 2 years
Samantha Stosur won the Southern California Open in Carlsbad, California, for
her first title in nearly two years, beating
top-seeded Victoria Azarenka 6-2, 6-3.
The fifth-seeded Stosur, an Australian, had lost all of her previous eight
matches against Azarenka, winning
only two sets.
The title Sunday was Stosurs third in
her career and the first since she won
her only major, the 2011 U.S. Open. Azarenka, the two-time Australian Open
champion, played another loose match.
She committed 32 unforced errors, including seven double faults, and had
only 11 winners. (AP)

MICHAEL NELSON/EPA

Samantha Stosur won in straight sets, 6-2, 6-3.


SOCCER

Gascoigne gets a fine for ruckus


Paul Gascoigne has pleaded guilty to
common assault and drunk and disorderly charges and was fined 1,000, or
$1,500, following an arrest at a train station outside of London on July 4. The
former star has battled alcoholism. (AP)

Prize pool is much bigger


for men, and they appear
more on main courts
BY BEN ROTHENBERG

The Citi Open is one of the 18 professional tennis tour events at which men and
women compete together. Joint tournaments, which began with the four Grand
Slam events, are becoming increasingly
common.
But there is one distinct difference at
the Citi Open, in its second year as a joint
A.T.P.-W.T.A. event: it unabashedly
gives preferential treatment to the men.
Perhaps this is most noticeable in the
court assignments. At the event this year,
which ended Sunday, 23 mens singles
matches were played in the main stadium, compared with six for the women.
Organizers said the reason for the disparity was twofold.
First, the mens event, which has existed since 1969, is more established than
the womens event, which has existed in
the Washington area for only three
years.
Second, the mens event, a 500-level
tournament, awards significantly more
prize money and ranking points. The
mens purse was $1,295,790, and the
champion received $295,200. The womens event, which is on the lower International level, paid out $235,000, with
the champion earning $40,000.
Donald Dell, a Hall of Fame tennis
agent and a group president of
Lagardre Unlimited, a sports manage-

ment firm that puts on the Citi Open,


said in an interview last year that he did
not view it as a typical combined event.
I dont say its a combined event; I
say its two events playing in the same
week, Dell said, adding that the womens event had been added to the mens
in 2012 to compensate for the hit the
mens field would take because of the
concurrently run London Olympics. In
2011, the womens event took place in
College Park, Maryland.
A combined event connotes which
I think is unfair to the men like were
an equal-prize-money tournament,
Dell said. Were not. And theres no
sense in trying to say that.
Dell flew to Miami to meet with the
A.T.P. Player Council before the 2012
event to make certain the A.T.P. knew
that there was no intention of encroaching on the mens event by bringing in
the women. Dell also met with Stacey
Allaster, the chief executive of the
W.T.A., to discuss the arrangement, and
the W.T.A. signed off on it.
The men get a priority on the practice courts, and we told the women that
going in, Dell said. Theres no secrets
here; we dont have a secret game plan.
Its been all transparent.
But at the Acapulco, Mexico, and
Memphis tournaments, the other
events combining the A.T.P.s 500 level
and the W.T.A.s International level,
men and women are given about equal
time on the main court. And at the four
combined events at which the women
play a higher-level tournament than the
men in Brisbane and Sydney in Australia; Eastbourne, England; and
Beijing men and women are allotted
roughly equal time on the main courts.

However, some equal tournaments,


like the Madrid Open and Wimbledon,
give significantly more time on the
biggest stages to the men.
Sloane Stephens of the United States,
who at No. 15 has a higher singles ranking than any American man, played her
opening match of the Citi Open on the
Grandstand 1 court, a secondary stage
with 2,500 seats. Her match overlapped
the first-round matches of the U.S. men
James Blake and Mardy Fish, both of
whom played in the 7,500-seat stadium.
Lines formed outside Stephenss
match; the most densely crowded area

The mens field was larger


than the womens (48 players
to 32), and its average ranking
was slightly higher.
in the mostly empty stadium during the
mens matches was the last row of the
stadiums north edge. Fans in that row,
which overlooks Grandstand 1, turned
their backs to the mens action as they
watched Stephens play.
Stephens had the option of playing
her opener in the main stadium, but
only at the undesirable first or last spot
in the order of play that had been allocated to the W.T.A.
The mens field was larger than the
womens (48 players to 32), and its average ranking was slightly higher. But
each draw featured only one top-10 player: No. 7 Juan Martn del Potro on the
mens side and No. 9 Angelique Kerber
on the womens.
Del Potro played all of his matches at
the main stadium. Kerber played only

one of her three matches there before losing in the quarterfinals on Grandstand 1.
The 18-year-old American Madison
Keys, the youngest player ranked in the
W.T.A. top 40, played her second-round
match on Court 1, which seats only 700.
Some fans watched her by peeking
through the back fence or by gathering
in the last rows of the larger Grandstand
2, which featured a mens match.
On Friday, all four mens quarterfinal
matches were played at the stadium,
and all four womens quarterfinals were
played on Grandstand 1. One of the two
womens semifinals was played at the
main stadium; none were played there
last year.
We deserve to play, as a semifinal, on
the big court, said Aliz Cornet, a semifinalist this year. And I think that the
crowd wants it, too, because its pretty
exciting to have both men and women
playing at the same time so why not
putting everything on center court?
The women were given major improvements this year. Last year, they
had two matches at the main stadium,
compared with 22 for the men.
But perhaps the most notable difference this year was that the women were
allowed to use the newly renovated indoor locker room facilities beneath the
stadium. The men had sole access to the
indoor facilities last year, while the
women used locker rooms, bathrooms
and toilets in trailers and tents.
Genie Bouchard, who complained last
year about the facilities, took personal
pride in the improvements. Everyone
heard about those comments, Bouchard
said, laughing. So its a bit of a funny story now, but it now should be called, like,
the Genie Bouchard Locker Rooms.

Rodriguez standing alone for now on any drug punishment


BASEBALL SAN DIEGO

BY DAVID WALDSTEIN

Leaving behind the tranquillity and sunshine of Southern California, the New
York Yankees headed east for a wild
spectacle in Chicago, where Alex
Rodriguez was expected to make his
season debut despite a looming suspension by Major League Baseball.
All indications were that Rodriguez
would be suspended Monday, along
with a number of other players, but that
he would appeal his penalty and be at
third base Monday night against the
White Sox.
On Monday afternoon, The Associated Press reported that a person familiar with the negotiations said Rodriguez
remained the lone holdout, while the
All-Stars Nelson Cruz of the Texas
Rangers, Jhonny Peralta of the Detroit
Tigers and Everth Cabrera of the San
Diego Padres were among 12 players
who accepted 50-game penalties from
Major League Baseball as part of its
Biogenesis drug investigation.
The person spoke on condition of anonymity because the suspensions had
not yet been announced.
Others accepting the suspensions,
The A.P. reported, included New York
Yankees catcher Francisco Cervelli and
outfielder Fernando Martinez; Philadelphia pitcher Antonio Bastardo;
Seattle catcher Jesus Montero; New
York Mets infielder Jordany Valdespin
and outfielder Cesar Puello; Houston
pitcher Sergio Escalona; San Diego

pitcher Fautino De Los Santos; and


pitcher Jordan Norberto, a free agent.
The Yankees were given informal notification Sunday that Major League
Baseball intended to suspend Rodriguez through the end of the 2014 season
for violations of the leagues drug prevention program and the collective bargaining agreement. The Yankees were
also told there was no indication that
Rodriguez was prepared to make a deal
that would end the matter quietly.
Instead, the expectation was that
Rodriguez would immediately appeal
the suspension and be allowed to play
during that process, which could take
more than a month. Rodriguez told a
confidant Sunday that he would be at
U.S. Cellular Field in Chicago on Monday, ready to play, and Manager Joe Girardi said before the Yankees 6-3 loss to
the San Diego Padres on Sunday that he
had Rodriguez penciled into the Monday lineup.
It should be a bit of a circus, Yankees outfielder Vernon Wells said.
Major League Baseball also told the
Yankees on Sunday that Commissioner
Bud Selig did not intend to invoke his
special powers in the best interests of
baseball, under Article 11 of the collective bargaining agreement, that would
theoretically allow him to remove
Rodriguezs case from the normal appeals procedure and prevent him from
playing until the matter was resolved.
The players union has dismissed the
commissioners right to do so and has
vowed immediate action if he takes that
step.

KATHY WILLENS/THE ASSOCIATED PRESS

Alex Rodriguez expected to be in Chicago with the Yankees to play the White Sox.

Baseball, aware of the unions strong


legal position and its recent cooperation
with the joint drug program, is not interested in antagonizing the union. And ultimately, baseball thinks it has a solid
case, with stacks of evidence that will
stand up to any appeal. The league accuses Rodriguez of using performanceenhancing drugs and of trying to obstruct its investigation.
However, Rodriguezs legal team is
confident it can show that the entire proceeding is an attempt to allow the Yankees to shed their liability under his con-

tract, which has about $95 million


remaining on it through 2017.
Rodriguez, the highest-profile player
expected to be suspended, has not
played this season as he rehabilitates
from hip surgery and a quadriceps
strain. Now he faces a suspension that
could cover as many as 214 games, and
he stands to lose as much as $36 million
in salary.
If he appeals and the expected suspension is upheld after a month or so,
Rodriguez will serve the 214 games from
that point, meaning his suspension will

last into the 2015 season, when he will


turn 40. If it is overturned, Rodriguez
can continue to play as if nothing
happened.
Rodriguez, who has admitted using
performance-enhancing drugs while he
played for the Texas Rangers from 2001
to 2003, has been under investigation by
baseball for his suspected involvement
with Biogenesis, a now-defunct South
Florida anti-aging clinic that has been
accused of distributing performanceenhancing drugs to several players.
Under that cloud, Rodriguez has been
working to come back. He worked out
Sunday in Trenton, New Jersey, after
playing two games for the Thunder, a
Class AA Yankees affiliate, as part of his
rehabilitation from the leg injury. He
was then scheduled to fly to Chicago,
check in at the team hotel and meet his
teammates. Barring an 11th-hour deal,
he would then have made his 2013 debut
against the wishes of baseball, on the
same day he was issued the longest suspension for performance-enhancing
drugs in history.
General Manager Brian Cashman has
consistently said that the Yankees want
Rodriguez back but that he needs to be
healthy first.
Yankees players also said they would
welcome him back.
If the guy comes back and hes
healthy, he can help this team win, said
pitcher Andy Pettitte, who admitted in
2007 to using human growth hormone
before baseball tested for it. I think he
can help us. Everything that comes
after that, well have to wait and see.

If she can fit it in to her vacation schedule, Inbee Park will tune to the telecast
of the Solheim Cup.
I watch when I get time, she said.
Park, the world No. 1, can be forgiven
for not putting the Solheim Cup, a biennial competition featuring womens
teams from the United States and
Europe, high on her priority viewing
list. Like male-only clubs, the Solheim
Cup no longer reflects the realities of the
sport or the times.
In 1990, when the Solheim Cup became the first professional international
match-play event for women, Americans swept the four majors to run the
streak of major winners from the United
States or Europe to 30. Those were the
days when golf bowed to Britain because of its rich history and to the United
States because of its deep pool of talent.
Golfs tectonic plates are in the midst
of a seismic shift that is creating mountaintops where none existed 30 years
ago in Asia, where the greatest growth is
occurring and where a matriarchal dynasty is flourishing in South Korea.
With her stirring victory Sunday in
the Womens British Open, Stacy Lewis
snapped Parks string of majors, at
three, and Asias streak of major victories at 10. Led by Park, there are five
South Koreans in the top 10 in this
weeks womens world rankings and 21
in the top 50. The United States has 10
players in the top 50 and Europe, eight.
Imagine a biennial mens competition
taking place without the world Nos. 1, 4,
5 and 10 Tiger Woods, Justin Rose,
Luke Donald and Keegan Bradley. That
is your 2013 Solheim Cup.
Not much of a TV watcher, Park,
however, allowed that this Cup will be
fun, so Ill definitely watch.
The 2011 event was great theater, with
the outcome teetering on the final three
singles matches. Europe pulled off the
15-13 upset when Caroline Hedwall, two
down with two to play, rebounded to
halve her match against Ryann
OToole; Suzann Pettersen came from
one down to beat Michelle Wie with a
birdie on the final hole; and Azahara
Munoz, who was paired against Angela
Stanford, delivered the final point.
This years event, which will take
place outside Denver on Aug. 16-18, will
feature the youngest player in Solheim
Cup history (17-year-old Charley Hull of
Europe) and the youngest U.S. team
(the 12 members average 25.9 years).
The U.S. captain, Meg Mallon, added a
dash of controversy to spice up the proceedings by using one of her discretionary picks on Wie, who had three top-10
finishes and 17 missed cuts on the

The Cup no longer reflects the


realities of the sport.
L.P.G.A. tour during the two-year qualifying period. Mallon likened her Wie
pick to Greg Normans selection of
Adam Scott for the International team
at the 2009 Presidents Cup when Scott
was struggling to find his form.
The absence from the event of Jennifer Johnson, one of three American
winners on the L.P.G.A. Tour this year,
and Nicole Castrale, whose tie for ninth
at the Old Course was better than the
finishes of Mallons two captains picks,
Gerina Piller (T36) or Wie (T56), is disputable. But the real debate ought to be
reserved for how the L.P.G.A. can continue to hold a prestigious international
team event that excludes a country, like
South Korea, with 36 players in the
world top 100.
The L.P.G.A.s answer to the problem
was to create another biennial team
competition called The International
Crown, which will feature four-woman
teams from eight countries in a fourday, match-play format with a total
purse of $1.6 million. The countries and
players will be chosen off the world
rankings and the event will debut next
year outside Baltimore.
Our tour is so global and we need
this type of event, Lewis said. People
always want to know why golfers from
Asia are so good. Well, now we can see
how all the countries stack up. The more
we can showcase our tour around the
world, the better.
If the teams were picked off the current world rankings, South Korea would
be represented by Park, Na Yeon Choi,
Seo Yeon Ryu and I.K. Kim, who have a
combined six majors. Those not eligible
because of Koreas depth would include
Jiyai Shin and Se Ri Pak, who have seven major titles between them.
The International Crown is one small
step for womens golf, but what is
needed is a giant leap. Until there is a 12player team from South Korea taking on
the best of the rest of the world, there
can be no blaming people for not making
the Solheim Cup must-see TV.

....

TUESDAY, AUGUST 6, 2013 |

THE GLOBAL EDITION OF THE NEW YORK TIMES

13

cricket water sports sports

Swimmer
thinks this
is a quick dip

England retains a damp urn of Ashes


CRICKET MANCHESTER

BY HUW RICHARDS

Told pre-series that England would retain the Ashes with two matches to
spare the quickest possible time
most of its fans and players would have
been ecstatic.
But the moment when it came at Old
Trafford, a venerable venue which
staged big cricket three decades before
its nearby soccer namesake was even
thought of, was distinctly anticlimactic.
It came with the announcement at
4.40 p.m. on Monday, made to a dwindling audience of rain-soaked stoics, that
there would be no more play and the
third test had finished in a draw. Two
down with two to play, Australia cannot
do better than draw the series so England, as current holder, retains the
trophy.
It was a bit of a strange day, said
Englands captain Alastair Cook. But
you have to look at it in the context of 14
days of cricket. If youd offered this to
me at the start of those 14 days Id have
snapped your hand off.
Post-match
ceremonies
were
conducted indoors, though relayed to
the crowd via big screens, with the presentation of the Ashes themselves held
over until after the final match at The
Oval, London later this month. Any
sense of English triumph was further
qualified by a match in which Australia
was clearly the better side and, had the
weather not intervened, by far the likelier winner.
In 90 minutes of play on Monday
which was 90 more than anybody who
checked weather forecasts had expected Australia dug out three of Englands top order batsmen and twice
came close to extracting a fourth.
England made minimal progress towards its notional target of 332 to win,
scoring only 37 runs from the twenty
and a half six-ball overs delivered.
The Australia captain Michael Clarke
admitted to feeling frustrated by the
weather, but said I dont want to take
anything away from England. They outplayed us in the first two tests, particularly at Lords. When you come to England to play, you know theres a chance
of the weather playing a part.
The result puts at end to the silly and
premature talk of England recording a
5-0 series sweep for the first time in the
rivalrys 136 year history (Australia has
two). Australia will go to the fourth test,
which starts in Durham on Friday,

Major Leagues

AMERICAN LEAGUE

THE ASSOCIATED PRESS

KIRSTY WIGGLESWORTH/THE ASSOCIATED PRESS

The Ashes could not find a fair weather friend on Monday in Manchester as a band of persistent rain put an end to play.

knowing it is more than capable of competing.


If we can level the series, we can take
a lot of confidence back to Australia,
said Clarke, looking toward the return
series at home later this year If we can
play the way we have over the last four
days well give it a good shake.
The short turnaround brings some
problems. Australia will have to decide
whether Ryan Harris, its powerful but
injury-prone veteran paceman who
bowled so well on Monday, is capable of
playing two five-day tests in such rapid
succession.
Im confident hes in good hands,
said Clarke. Our physios will be working hard to give us a chance to pick our
best eleven.
Pluses vastly outweighed minuses for
a team which went into the Old Trafford
match derided as possibly the worst in
Australias long and distinguished
cricket history.
Its previous abysmal top order batting functioned at last. Most significant
was that Clarke, rated by the authoritative Wisden Cricketers Almanack as the
games leading current player, underlined his standing as the best batsman

on either side with an innings of 187.


His effort was underpinned by other
significant contributions. Opening batsman Chris Rogers got Australia off to a
rapid, initiative-seizing start on the first
day with an innings of 80 while Steve
Smith, who scored 89, joined Clarke in a
partnership of 214 runs which drove
Australia to a first innings score of more
than 500.
Australias best betting in both previous matches had come with No. 11 the
last man in the order at the crease. At
Manchester, nobody was needed beyond No. 9.
Australias pace bowlers, the one part
of the team to play well in the two previous matches, maintained their standards. The muscular Harris, the workhorse Peter Siddle and left-armer
Mitchell Starc who is wont to follow
two harmlessly wide deliveries with one
that is lethally straight outbowled
their English counterparts while spinner Nathan Lyon justified his selection.
Australias improvement showed up
Englands limitations. Its pace bowling
is over-reliant on Jimmy Anderson, who
had a moderate match on his home
ground, and its tactical inflexibility was

shown up during periods of Australian


dominance.
Nor is its batting in great shape. While
the prodigal Kevin Pietersen played superbly to score 113 on Saturday, England
still awaits a substantial contribution
from any of Cook, Jonathan Trott or
wicket-keeper Matthew Prior.
The first goal was always to win the
Ashes, said Cook, looking toward the final two tests as he added, The next is
to go on and win them.
England even lost its discipline in
dealing with the Decision Review System, D.R.S., for challenging close umpiring calls. Cooks decision to challenge an
extremely clearcut leg-before-wicket
ruling against him on Monday was the
sort of misjudgment for which Australia
was pilloried in the two earlier
matches.
Both teams have been a little confused by some of the decisions which
have occurred, said Cook of a match in
which concern over both the quality of
on-field umpiring and the effectiveness
of D.R.S. continued.
Next up is Durham, which is fresh, Furthest North territory for a rivalry which
after 136 years has lost none of its edge.

The Shark is in the water and he will


be for a while.
Jim Dreyer, a long-distance swimmer
who calls himself The Shark, jumped
into Lake St. Clair near the MichiganCanada border on Monday to begin
what he hopes will be a 22-mile success
story all while hauling a ton of bricks.
The soon-to-be-50-year-old plans to
come ashore 30 hours later on Tuesday
afternoon at Detroits Belle Isle to greet
fans, well-wishers and representatives
of Habitat for Humanity, the charity that
inspired Dreyer to undertake his latest
swim.
A 35-kilometer swim across Lake St.
Clair is like a dip in the water for a guy
who has direct crossings of all five
Great Lakes under his swim belt.
So to make it interesting, Dreyer is
carrying two dinghies filled with 334
bricks. And hes swimming solo without
a support boat.
At a weight of six pounds, or 2.7 kilograms, per brick, the motivational
speaker from Byron Center, Michigan,
is towing more than 2,000 pounds behind him. Dreyer calls it his train of
pain.
After his crew of three loaded up the
dinghies with bricks, food, drink and
other essentials for the trip Monday
morning, Dreyer waded out into the waters off of the Clinton River Boat Club in
Clay Township near Algonac.
He donned his wetsuit, took a group
photo and the crew affixed the dinghies
to Dreyers ankles. He then looked in
the distance, gazing at the Renaissance
Center towers that comprise General
Motors headquarters.
Next stop, Detroit, he said, before
hitting the water to the delight of the onlookers who had gathered to see him get
started.
Dreyer has been preparing since October, doing strength training, completing 20-mile swims and at one point towing a 6,000-pound boat in the water.
Water temperatures are expected to
remain in the 68- to 71-degree Fahrenheit range, or 20 to 21.6 degrees Centigrade, which pleased Dreyer, and hes
hoping the weather remains calm.

PEANUTS

DOONESBURY FLASHBACK

GARFIELD

CALVIN AND HOBBES

WIZARD of ID

DILBERT

East Division
Boston
Tampa Bay
Baltimore
New York
Toronto
Central Division
Detroit
Cleveland
Kansas City
Minnesota
Chicago
West Division
Oakland
Texas
Seattle
Los Angeles
Houston

W
68
66
61
57
51
W
64
62
56
48
40
W
64
62
52
51
36

L
45
45
51
53
60
L
45
49
52
60
69
L
47
50
59
59
74

Pct
.602
.595
.545
.518
.459
Pct
.587
.559
.519
.444
.367
Pct
.577
.554
.468
.464
.327

GB

1
6
9
16
GB

3
7
15
24
GB

2
12
12
27

East Division
Atlanta
Washington
Philadelphia
New York
Miami
Central Division
Pittsburgh
St. Louis
Cincinnati
Chicago
Milwaukee
West Division
Los Angeles
Arizona
San Diego
Colorado
San Francisco

W
67
54
50
49
43
W
67
65
61
49
47
W
61
56
52
52
49

L
45
57
61
60
67
L
44
45
51
62
64
L
49
55
60
61
61

Pct
.598
.486
.450
.450
.391
Pct
.604
.591
.545
.441
.423
Pct
.555
.505
.464
.460
.445

GB

12
16
16
23
GB

1
6
18
20
GB

5
10
10
12

NATIONAL LEAGUE

AMERICAN LEAGUE

SUNDAY
Detroit 3, Chicago White Sox 2, 12 innings
Cleveland 2, Miami 0
Kansas City 6, N.Y. Mets 2
Boston 4, Arizona 0
Seattle 3, Baltimore 2
Tampa Bay 4, San Francisco 3
Minnesota 3, Houston 2
Toronto 6, L.A. Angels 5
Texas 4, Oakland 0
San Diego 6, N.Y. Yankees 3

NATIONAL LEAGUE

SUNDAY
St. Louis 15, Cincinnati 2
Pittsburgh 5, Colorado 1
Milwaukee 8, Washington 5
L.A. Dodgers 1, Chicago Cubs 0
Atlanta 4, Philadelphia 1
(AP)

AMERICAN LEAGUE
BATTINGMiCabrera, Detroit, .360; Trout, Los Angeles, .329;
Mauer, Minnesota, .321; DOrtiz, Boston, .318; TorHunter,
Detroit, .315; ABeltre, Texas, .314; Loney, Tampa Bay, .310.
RUNSMiCabrera, Detroit, 78; CDavis, Baltimore, 78; Trout,
Los Angeles, 77; AJones, Baltimore, 75; Bautista, Toronto,
73; Encarnacion, Toronto, 69; DeJennings, Tampa Bay, 69.
RBICDavis, Baltimore, 102; MiCabrera, Detroit, 99;
Encarnacion, Toronto, 88; AJones, Baltimore, 77; NCruz,
Texas, 76; Fielder, Detroit, 76; DOrtiz, Boston, 71.
DOUBLESMachado, Baltimore, 40; Mauer, Minnesota, 32;
Trout, Los Angeles, 32; CDavis, Baltimore, 30; JCastro,
Houston, 29; JhPeralta, Detroit, 29; AJones, Baltimore, 28
HOME RUNSCDavis, Baltimore, 40; MiCabrera, Detroit, 32;
Encarnacion, Toronto, 29; NCruz, Texas, 27; ADunn, Chicago,
26; Bautista, Toronto, 25; Trumbo, Los Angeles, 25.
STOLEN BASESEllsbury, Boston, 40; RDavis, Toronto, 34;
Altuve, Houston, 28; Andrus, Texas, 25; McLouth, Baltimore,
25; Rios, Chicago, 24; AlRamirez, Chicago, 23
PITCHINGScherzer, Detroit, 16-1; Tillman, Baltimore, 14-3;
MMoore, Tampa Bay, 14-3; Colon, Oakland, 14-3; Masterson,
Cleveland, 13-7; FHernandez, Seattle, 11-4; CWilson, Los
Angeles, 11-6
ERAFHernandez, Seattle, 2.30; Kuroda, New York, 2.38;
Colon, Oakland, 2.50; AniSanchez, Detroit, 2.59; Darvish,
Texas, 2.66; Iwakuma, Seattle, 2.76; Scherzer, Detroit, 2.85.
STRIKEOUTSDarvish, Texas, 186; Scherzer, Detroit, 170;
FHernandez, Seattle, 166; Masterson, Cleveland, 160; Sale,
Chicago, 155; DHolland, Texas, 145; Verlander, Detroit, 138.
SAVESJiJohnson, Baltimore, 38; MRivera, New York, 35;
Nathan, Texas, 32; GHolland, Kansas City, 29; Balfour,
Oakland, 29; Perkins, Minnesota, 27; Rodney, Tampa Bay, 27.
(AP)

ONLINE: COMPLETE SPORTS RESULTS


global.nytimes.com/sports

No. 0608

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BASEBALL

WATER SPORTS
CLAY TOWNSHIP, MICHIGAN

NON SEQUITUR

SUDOKU

SCOREBOARD

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BRIDGE | Frank Stewart

Another letter arrived from the Society


South Dealer
of Finessers, complaining that finesses
Both sides vulnerable
never win in my columns.
Dear Sir, we again protest your disdain
North
for the finesse, an honorable technique
J9
that works fully half the time except
AQJ96
52
when you write about it.
7652
Actually, some finesses will almost always win. At todays 3NT, South let the
West
East
ten of hearts ride at the second trick ...
K 10 7 3 2
8654
winning. Assuming that a winning fi752
K83
nesse would win twice, South led a
74
K 10 9 8
KQ8
J9
second heart to the queen, but East won
and returned a spade. Since dummy was
as dead as a moldy leaf, South attacked
South
AQ
the diamonds next. He went down three.
10 4
Trick Two
AQJ63
Unless East was a novice, Souths first
A 10 4 3
heart finesse would win no matter who
had the king. South should lead his four
South
West
North
East
to the jack at Trick Two and next try a
1
Pass
1
Pass
2
Pass
2
Pass
diamond to his queen.
2NT
Pass
3NT
All Pass
Then Souths best play is to go to the ace
of hearts to lead a second diamond to his
Opening lead - 3
jack. He takes the ace, loses a diamond,
and has four diamonds, two hearts, two
spades and a club.
Daily Question: You hold: A Q; 10 4; A Q J 6 3; A 10 4 3.
Your partner opens one heart, you bid two diamonds, he rebids two hearts and you try
three clubs. Partner then bids 3NT. What do you say?
Answer: To pass might be best, but partner could hold a few extra values, and slam
might be a reasonable undertaking. If he has K 7 6, A K J 9 5, K 2, 8 6 5, 6NT will
have a chance even if the opening lead is a club. Raise to 4NT (quantitative, not aceasking) and let him judge.
Tribune Media Services

CROSSWORD | Edited by Will Shortz


1
4
8
13
14
15
16
17
19
21
22
23
27
28
32
34
37
38

Across

Aesop animal
Frisbee, e.g.
Notable watchmakers
Abbr. in two state
names
Mattress giant
Ship of 1492
It makes gray go
away
Make off with some
raffle tickets?
Loosen, as a knot
Give ___ whirl
Lake creators
Make off with some
kitchenware?
Great blue wader
Washes away
Italian exile island
Shredded
Scene of gladiatorial
combat
That stinks!

39 Make off with some


vehicles?
41 Sports V.I.P.
42 Luau greeting
44 Lot in life
45 Word repeated in
___ will be ___
46 Washington city
in apple-growing
country
48 Confederacy foe
50 Make off with some
cash?
55 Attraction for a
butterfly
58 Big guns in D.C.
lobbying?
59 Open, as a jacket
60 Make off with some
gym equipment?
64 Actress Lupino
65 Also-ran
66 First lady between
Bess and Jackie

Solution to August 5 puzzle


A
R
C
A
D
E
S

G
O
O
G
O
L
S

I
G
U
A
N
A
S

C
A
P
S
I
Z
E

A
S
H
T
R
A
Y

S
C
O
U
R
G
E

T
E
N
S
E
S
K
A
R
E
N

A
R
T R
S I
F
T I
I F
E I
S
I B
N I
G
D A
S P
T E

C L O C
R O C H
Y S T A
E A R
O R D G
C
S E
A T
T H M O
Y E P
E
N E
X S U N
P A
U
I L Y P
R E E
E M S

K
E
R

E
L
T
O
N

A
T
C
O
S
T G
I
P T
L A
A N
N O

S
H
A
L
A
L
A

R
E
L
A
X
E
S

A
N
A
L
Y
S
T

P
A
R
I
N
G
S

S
I
A
M
E
S
E

A
N
N
E
T
T
E

67 Circus safety
precaution
68 O. Henry work
69 Cauldron or sword
in Macbeth, say
70 Test for an M.A.
applicant
1
2
3
4
5
6
7
8
9
10
11
12
14
18
20
24
25
26
29
30
31

Down

Make sense
Decline
Pad of drawing paper
Fed. overseer of
the Controlled
Substances Act
Vex
Container for a draft
of ale
Desert bloomers
Fitness facility
British royal name
since 1917
Llama herder of old
Winder on a watch
Wise off to
Rodeo wrestling
target
Possess
Big retailer of home
accessories
Dog in Oz
Book publisher
Alfred A. ___
Pitching stats
Doing the job of an
attack ad
A deadly sin
Gullible ones

13

14

16

17

19

21
25

36

43

60

31

53

54

45
48

51

57

30

41

44
47

56

29
37

40

50
55

35

39

46

12

26
28

34

38

11

22

27
33

10

18

24

42

15

20

23

32

49

52

58

59

61

62

63

64

65

66

67

68

69

70

PUZZLE BY LYNN LEMPEL

32 Shopping venue with


the options Books
and Toys & Hobbies
33 She gets whatever
she wants in Damn
Yankees
35 Color TV pioneer
36 Devour eagerly
39 Womans sleeveless
undergarment,
informally
40 Actress Russo

THE NEW YORK TIMES

43 Type who wears


tight-fitting jeans
and thick-rimmed
glasses, maybe
45 Cold war capital
47 One of two of Henry
VIIIs six
49 Not idle
51 Form tight curls in
52 Horrible Viking, in
the comics

53 Downy duck
54 Sudden outpouring
55 Woes
56 Mob gone wild
57 Assuming thats
true
61 Ironically humorous
62 Payer of many dr.
bills
63 Helpful hint

14

....

| TUESDAY, AUGUST 6, 2013

Business
Hedge fund
urges EADS
to sell stake
in Dassault
PARIS

London-based firm calls


holding in plane maker
a poor use of capital
BY NICOLA CLARK

EADS, the parent company of Airbus,


confirmed Monday that it had received
a letter from an influential shareholder
urging it to sell its 46 percent stake in
Dassault Aviation, the French maker of
the Rafale fighter and the popular Falcon business jet.
European Aeronautic Defense &
Space, which last week announced a restructuring of its military contracting
and space operations, declined to elaborate on its plans for the holding, which
has a market value of about 4 billion, or
$5.3 billion. But the Toulouse-based
company did not rule out the possibility
of divesting itself of the stake in
Dassault, which EADS has held for
more than a decade and which management has long emphasized is a financial,
rather than a strategic, investment.
We will keep shareholders fully appraised of our plans and progress with
regard to the Dassault stake, said Martin
Agura, an EADS spokesman. Central
to our strategy is efficient capital allocation and creation of shareholder value.
In a letter to the EADS chief executive,
Thomas Enders, that was dated Friday
and made public Monday, Ben Walker, a
partner at The Childrens Investment
Fund Management, a London-based
hedge fund, argued that the companys

LUCAS DOLEGA/EPA

A Rafale fighter from Dassault. Military


budget cuts have clouded its future.

investment in Dassault was a poor use


of capital. The fund, also known as TCI,
owns just over 1 percent of EADS.
Mr. Walker urged Mr. Enders to dispose of the stake in Dassault as soon as
possible, either through a direct sale to
a third party or via a public offering, and
to use the proceeds to buy back shares or
pay a special dividend to shareholders.
A quick sale is unlikely, however, and
any shake-up of Dassaults ownership
structure would be fraught with political complications, given the sensitivity of
its military business as well as the companys status as a high-tech corporate
jewel of France. Two-thirds of
Dassaults 11,600 employees are based
in the country.
Politics will play a large part in this,
said Howard Wheeldon, an independent
strategist and fellow of the British Royal
Aeronautical Society, noting that the Socialist government of President Franois Hollande would be loath to see the
stake go to a non-French bidder.
As it happens, Paris owns a single
golden share in Dassault and has the
pre-emptive right to purchase any
shares EADS might sell. But given
Frances budget constraints and its recent moves to sell down state shareholdings in private companies, any

Any shake-up of the ownership


structure at Dassault Aviation
would be fraught with political
complications.
pressure on the government to buy a
stake in Dassault would likely be unwelcome, analysts said.
But if there is no other French company prepared to put up money and buy
this stake, then, frankly, hes not got
much choice, Mr. Wheeldon said, referring to Mr. Hollande.
The situation is further complicated
by the fact that Dassault Aviation is controlled by the politically powerful
Dassault family, which owns just over
50 percent of the company through a
holding company, Groupe Industriel
Marcel Dassault. Mathieu Durand, a
Dassault Aviation spokesman, declined
to comment.
Dassault, while respectably profitable, is struggling to maintain its footing. The latest recession eroded demand
for its business jets, and austerity-driven cuts in European military budgets
have clouded the future of its fighterplane business.
Dassault is a relatively small, undercapitalized company in what is an increasingly very large and high-risk world
of key defense products, Mr. Wheeldon
said. EADS potentially walking away is,
for Dassault, a very worrying sign.
REUTERS BREAKINGVIEWS

Politics would make engineering an


exit from Dassault Aviation hard, but
not impossible. PAGE 18

INTERNATIONAL HERALD TRIBUNE

W ITH

U.S. gun makers go where theyre wanted


BRISTOL, CONNECTICUT

BY NELSON D. SCHWARTZ

Politicians from American states eager


to embrace the beleaguered gun industry have descended on places where
firearms are not so popular to offer
manufacturers based there tax breaks
and outright cash grants to relocate.
I sensed an opportunity, said Alan
Clemmons, a South Carolina state representative who traveled to Connecticut
in the spring as part of a successful effort to lure PTR, a maker of assault rifles
here in this bucolic town. They are not
feeling loved right now in Connecticut.
Were delighted to have them.
In June, Governor Rick Perry of
Texas and Governor Dennis Daugaard
of South Dakota toured Connecticut
within days of one another, visiting sites
like the Colt factory in Hartford, which
the famed gun maker has called home
for more than 150 years.
Shooting and hunting and the outdoors is more of a culture and a way of
life in South Dakota than in some larger
metropolitan areas, said Pat Costello,
commissioner of the governors Office
of Economic Development in South
Dakota. Its a target industry for us.
The campaign has already won a few
converts.
PTR is packing up its cutting machines and moving its 50-strong work
force to South Carolina, saying that
tough new state gun laws enacted after
the school shootings in nearby Newtown make it too risky to keep doing
business in Connecticut. Similar new
laws in Maryland prompted Beretta to
call off plans to add jobs locally, and the
company is now finalizing plans to expand in a more gun-friendly state.
Kahr Firearms Group, a pistol and
rifle maker headquartered an hours
drive north of New York in Rockland
County, New York, is going across the
border to Pennsylvania.
We dont feel welcome, said Frank
Harris, vice president of sales and marketing at Kahr. In Pennsylvania, he said,
all the people we were dealing with on
the town level were hunters and comfortable with firearms. We were received with open arms.
While the gun lobby successfully
blocked new restrictions at the federal
level, several liberal states have
tightened restrictions on weapons sales
and broadened background checks in
response to the massacre in Newtown
in December, where 20 students and 6
adults were killed.
Some well-known gun makers like
Sturm, Ruger, which is based in Southport, Connecticut, have chosen not to
abandon the Northeast, but they are expanding elsewhere, straddling a broader, cultural bifurcation in the United
States when it comes to the 2nd Amendment and the role firearms should play
in society.
For states that successfully woo firearms makers, it means new jobs in an
industry where sales are rising rapidly
and blue-collar work still pays well.
They cant make guns fast enough,
said Nima Samadi, a gun industry ana-

JOSHUA BRIGHT FOR THE NEW YORK TIMES

At the PTR factory in Bristol, Connecticut. The company is moving to South Carolina, saying that tough new Connecticut gun laws make it too risky to keep doing business there.

lyst with IBISWorld.


Investors have noticed too. Many big
gun brands are privately owned, like
Freedom Groups Remington and Bushmaster units, but shares of publicly
traded Smith & Wesson have tripled in
the last two years. The stock of Sturm,
Ruger, which is the fourth-largest gun
maker in the country and recently announced it would open its first big new
factory in 25 years in North Carolina,
has doubled over the same period.
Gun sales surged prior to the presidential election, Mr. Samadi said, and
fears that some weapons might be
banned after Newtown have only
spurred sales further this year.
Figures for total gun sales in the
United States are not available, but Mr.
Samadi said one useful proxy was the
number of background checks being
performed before gun purchases. They
totaled 2.5 million in January 2013, compared with 1.4 million in January 2012.
Indeed, Beretta and PTR say that are
struggling to keep up with demand,
which is why PTR plans to double the
size of its factory after the move to
South Carolina from its cramped facility
here. Workers at PTR earn $17.50 an
hour on average.
Beretta is also looking for a new factory site, with seven states emerging as finalists, including South Carolina, Texas
and Virginia.

Weve excluded states that have not


shown consistent, strong support for
Second Amendment rights, said Jeff
Reh, Beretta USAs general counsel.
Berettas political litmus test is stringent.
West Virginia is out because Senator
Joe Manchin, a Democrat, was a sponsor of legislation that would have expanded background checks nationwide; the
bill failed to overcome a Republican filibuster in the Senate in April. Louisiana,
hardly a liberal redoubt, did not make
the cut because Democratic Senator
Mary Landrieu voted for Senator
Manchins bill and because the city of
New Orleans sued to hold gun makers liable for damages back in 1998.
To be sure, sometimes gun makers
speak loudly but carry a smaller stick.
Beretta, which initially threatened to
abandon Maryland altogether, ultimately decided to keep its factory in Accokeek and the 300 workers there but to
add any new jobs elsewhere.
Despite the planned new factory in
North Carolina, Sturm, Rugers chief
executive, Michael Fifer, recently told
shareholders he did not plan to move its
headquarters out of Southport, Connecticut. Sturm, Ruger did not return
calls for comment.
Colt, the oldest gun maker in Connecticut, is staying, at least for now, said
Gerry Dinkel, chief executive of Colt De-

Deadly virus strikes U.S. piglets


ANNAWAN, ILLINOIS

BY STEVEN YACCINO

The outside world is not allowed into a


sanitized and isolated pig farm here, not
far from the Iowa border.
Visitors must shower before entering,
scrubbing from head to toe, trading
their street clothes for disinfected
coveralls that have never left the
premises. Everything inside the temperature-controlled barn housing 3,000
sows has been blasted with antiseptic.
We do a better job than some hospitals, said Dr. Matt Ackerman, a veterinarian who works with the farm.
Strict protocols have kept the operation, one of 10 swine facilities run by
Great Plains Management, safe from a
virus spreading across the United
States this summer, killing piglets by
the thousands and distressing hog producers in 16 states.
But those same precautions have not
worked everywhere. A Central Indiana
farm that Dr. Ackerman also works with
was among the first to lose piglets to the
virus in May. If it gets in, you cant stop
it, Dr. Ackerman said. We filled
wheelbarrows with dead pigs.
The porcine epidemic diarrhea virus,
which is deadly only to young pigs and
poses no food safety risks or danger to
humans, appeared in the United States
for the first time last spring in Ohio and
within weeks had spread to four other
states.
The outbreak led to a flurry of lab testing and a survey of the industry to determine how the virus had entered the
country, comparing supplies and feeds
in an effort to find a smoking gun. Farmers are cross-referencing vaccine and
semen distributors, even the brands of
plastic pipettes they use to inseminate
sows, desperate to contain a threat that
has made the industry feel increasingly
vulnerable.
Its anybodys guess at this point,
said Lisa Becton, director of swine
health information and research at the

Weve excluded states that


have not shown consistent,
strong support for Second
Amendment rights.
fense, which focuses on weapons for the
military and police. He does not see a direct impact yet on his business from the
new law and therefore is not planning to
move his 750 employees out of the state.
Other companies are following through
on their threats, however.
Magpul, a Colorado maker of ammunition magazines and other accessories,
says it will relocate more than 200 workers after the state banned magazines
that hold more than 15 bullets. Magpul
has not announced where its new home
will be, but company executives say it
will be in a gun-friendly state.
Gun companies are getting more than
just a public embrace from states when
they move. Subsidies help sweeten the
deal, along with looser regulation, lower
costs and the general absence of unions
in many states.
Josh Fiorini, PTRs chief executive,
estimates it will be one-third less expensive to do business in South Carolina,
with lower prices on everything from
labor to electricity. Mr. Fiorini said state
officials in Connecticut made little effort
to persuade him to stay.

New Zealand dairy giant


apologizes for China scare
AUCKLAND

BY JONATHAN HUTCHISON

NATHAN WEBER FOR THE NEW YORK TIMES

Checking a piglet for the porcine epidemic diarrhea virus at a sow farm in western Illinois.

National Pork Board, which is spending


$800,000 for research into the virus.
After surfacing in Britain more than
40 years ago, the virus has spread
throughout Europe and Asia. It has
caused problems most recently among
pork producers in China, where a 2012
strand of the disease was 99.4 percent
similar to cases now found in the United
States, according to researchers.
Researchers in the United States are
working on a vaccine for the virus,
which is passed through fecal matter
and resembles transmissible gastroenteritis, another pig-to-pig illness that
American farms have at times encountered. Symptoms include severe
diarrhea and vomiting, and mortality
rates can reach 100 percent for pigs less
than a week old. Older swine will be sick
for days but most likely recover.
Retroactive testing by a national laboratory pegged the earliest confirmed
case of the virus in the United States
about April 15 at a farm in Ohio. Within a
month, other cases had surfaced in Indi-

ana, Iowa, Colorado and Minnesota. By


the end of July, 403 separate cases had
been reported to the National Animal
Health Laboratory Network of the Department of Agriculture, with most outbreaks occurring in Iowa (149) and
Oklahoma (94). About 30 new cases are
reported each week.
Theres not many times that a new
virus hits an industry that has no immunity, said Robert Morrison, a professor of veterinary medicine at the University of Minnesota who has studied
the virus. Every pig in the United
States is susceptible. Its like throwing a
spark on a bunch of kindling.
No one quite knows how many pigs
have died so far, in part because the virus is not considered a foreign animal
disease by the Agriculture Department
and farms are not required to report it to
the authorities. Few experts are willing
to speculate, saying only that industry
losses amount to several hundred thousand piglets nationwide.
PIGS, PAGE 17

For PTR, tax credits, cash grants and


other incentives helped make the move
to South Carolina worthwhile, Mr.
Fiorini said. For one thing, PTR will not
have to pay rent at the new facility near
Myrtle Beach while it still occupies the
old factory in Bristol. Mr. Fiorini added
that the incentive packages from Texas
and South Dakota were also generous,
but in the end he chose South Carolina in
part because it was a shorter move.
Were we all sort of pissed off about
the legislation? Yes, he said. Were we
pissed off enough to spend millions of
dollars to move? No.
Mr. Fiorini said his chief worry was
that the new state law would ultimately
make it impossible to legally make assault rifles in Connecticut, even if the
legislation specifically restricts the sale,
not the manufacture, of the guns.
For example, he said, the law permits
assault rifles to be transported in Connecticut for the purposes of sale elsewhere. But what if they are being transported as part of the manufacturing
process itself, like for painting or testing
at the rifle range?
Its a conservative reading of the
law, Mr. Fiorini said. State officials
will tell you that my fears are overblown. But why do I need to do business
in a place where I have fears, overblown
or otherwise? Wed rather be in a place
with no gray areas.

The New Zealand dairy producer


Fonterra apologized Monday for distress
caused by the contamination of batches
of a milk formula ingredient with a potentially toxic strain of bacteria.
The companys chief executive, Theo
Spierings, flew to Beijing, where he held
a news conference to address the matter.
We deeply apologize to the people
who have been affected by the issue,
Mr. Spierings said at the conference,
which was broadcast by Reuters.
He said that food safety, not only in
China but also around the world, is our
first and foremost interest.
In New Zealand, the dairy industry
accounts for about 11.5 billion New Zealand dollars, or about $9 billion, in export earnings, according to a research
note by the bank ASB. That amounts to
about a quarter of the countrys total
merchandise exports, and investors,
worried about a major customer, China,
sent the value of the New Zealand dollar
lower Monday against the U.S. dollar.
The crisis arose after three batches of
whey protein concentrate, totaling 38
tons, tested positive for Clostridium
botulinum, Fonterra said. The bacterium can cause botulism, a sometimes
fatal illness.
Fonterra, one of the worlds largest
dairy exporters, said eight customers
had been affected, in Australia, China,
Malaysia, New Zealand, Saudi Arabia,
Thailand and Vietnam.
The RIA Novosti news agency in Russia reported that Russia had banned imports of all Fonterra products, even
though it was not on the list of affected
countries.
Fonterra said Monday that the contamination had been traced to a pipe
that had not been properly cleaned in
one of its New Zealand processing

plants. Executives said that the source


of the problem had been fixed.
China and Vietnam stopped some
dairy imports from New Zealand in response to the contamination scare, but
the company said that those were not
blanket bans. Fonterra said China had
banned products made in Australia using
Fonterras whey protein, which had been
produced in New Zealand, but had not
banned any Australian whey protein.
The Ministry for Primary Industries
in New Zealand has confirmed that
China has not closed the market to New
Zealand dairy products and that China
is being quite specific about the range of
Fonterra products which it has temporarily suspended, Fonterras New Zealand milk products managing director,
Gary Romano, said Monday in a statement to the stock market. Whole milk
powder and skim milk powder have not
been suspended.
The affected batches of whey protein
were produced in May 2012, but the
company said that the first signs of contamination had not been spotted until
March, when the product was tested in
Australia. The specific strain was not
identified until last Wednesday.
Fonterra executives have been questioned in New Zealand and China about
why it took so long to identify the problem and alert consumers.
Fonterra said that more than half of
the affected product had gone to three
companies: Coca-Cola, the Chinese
beverage giant Wahaha and the New
Zealand health food company Vitaco. It
said processing methods at those
companies had eliminated any danger
from the bacteria.
But the main concerns focused on infant formula. Many Chinese consumers
prefer to buy imported products because of concerns about the safety of domestic brands.
The preponderance of Chinas $1.9 bilMILK, PAGE 17

....

TUESDAY, AUGUST 6, 2013 |

THE GLOBAL EDITION OF THE NEW YORK TIMES

media technology business

In return to print, a celebrated editor is humbled


NEW YORK

WITH

Connecting
the brain to
a computer

A digital partnership
for Newsweek proved too
tempting for Tina Brown

Disruptions

BY LESLIE KAUFMAN
AND CHRISTINE HAUGHNEY

N IC K BILTO N

On Nov. 12, 2010, Tina Brown gathered


the staff of her Web site The Daily Beast
in the third-floor conference room with
its commanding views of the Hudson
River. Brimming with the fervor she has
brought to all her endeavors, she delivered some surprising news: The Web
site would merge with Newsweek, a
once-proud but struggling magazine.
Ms. Brown, according to staff members who were present, spoke excitedly
about the potential synergies for advertisers across platforms and promised to
produce a new form of magazine journalism, where digital would drive print instead of the other way around. But after
a few softball questions from the staff,
Peter Lauria, the companys media reporter, braved a more skeptical one: Given that the two publications had lost
more than $30 million in the previous two
years, he asked, why was it a good idea to
put them together? And if The Beast was
on schedule to break even in 18 months,
how much longer would it take, now that
Newsweek was part of the mix?
Ms. Brown says she has no recollection of that particular meeting, but half a
dozen employees who say they were
present said the atmosphere immediately turned awkward. The famous editor gave no ground. The target, she said,
remained 18 months.
More than two and a half years later,
Ms. Brown has missed the mark. Synergies have long since slipped away. After
the magazine hemorrhaged tens of millions of dollars, Barry Diller, the billionaire media mogul whose company owns
both publications, publicly called the
purchase of Newsweek a mistake
and the original plan to save it stupid.
On Saturday, the company announced
that it had sold Newsweek for an undisclosed amount to the digital news company International Business Times.
It was always a quixotic project to
blend a buzzy, growing Web site with the
most outdated of print relics, a newsweekly. But interviews with more than
two dozen former and current employees some provided by Ms. Brown and
some reached independently suggested that she and Mr. Diller had underestimated what it would take to reverse the
dive of a print magazine (the two have
acknowledged as much) and that there
had never been a credible plan to integrate the products into a better whole
(an opinion they utterly contest). These
people also suggest that Ms. Browns intensely demanding and chaotic management style, which had thrived when contained within established companies,
proved a combustible combination with
Newsweeks gutted and weakened editorial and sales divisions.
Dan Lyons, Newsweeks former technology editor, summed up the sentiment
in a Facebook post when the magazine
was first put up for sale: It didnt need
to be as ugly and sad and dishonest as
whats happened under Barry and
Tina.
Ms. Brown, for her part, said that it
had taken at least a year to assemble a
team she wanted, and undoubtedly she
had bruised some egos along the way.
We did a cover on the beached white
male and perhaps thats another reason
for the old guard to be angry at me, she
joked during a recent interview at The
Beasts offices. But she said she had no
regrets.
It was really exhilarating, she said.
We did great journalism.
Ms. Brown knows great journalism,
having built her reputation with her
wholesale makeover of Vanity Fair and

SAN FRANCISCO Scientists have not

ANDREW GOMBERT/EUROPEAN PRESSPHOTO AGENCY

An edition of Newsweek for sale last year in New York. Ms. Brown had hoped she could use it as a vehicle for a new form of magazine journalism that would span platforms.

it difficult to find takers for the job of editor in chief. Peter Kaplan, editorial director of Fairchild Publications, was one
of those who balked. It was a
massively heavy lift and there was no
philosophy involved, he said.
TURNING ON THE CHARM

FRED R. CONRAD/THE NEW YORK TIMES

Ms. Brown, who famously transformed Vanity Fair and The New Yorker magazines.

her stewardship at The New Yorker. At


both magazines, she increased circulation, introduced dozens of young
writers, many of whom went on to become stars, and won shelves of awards.
But, despite her reputation, she said
publicly that she was happy to be away
from print. I would hate to be in the
magazine world, she told the EconWomen conference in 2008. Its a really
tough world to have to compete in.
That was the year that Ms. Brown started working for Mr. Diller as The Daily
Beast was introduced.
What pulled her back, she says, was
the billionaire investor Sidney Harman

his enthusiasm, charm and generous


financial resources to match and the
chance to return to long-form journalism. Although Ms. Brown does not utter
the word Talk, her last print magazine,
which ended in heartbreaking failure,
she acknowledges that she missed the
rhythms of long-form journalism and
that she felt she could not do all the work
she craved on the Web.
When Mr. Harman contacted Ms.
Brown and Mr. Diller, it didnt seem like
a surefire deal. When Mr. Harman, a
stereo executive, bought Newsweek on
Aug. 2, 2010, for just $1 and the assumption of $40 million in liabilities, he found

Both Mr. Diller and Ms. Brown say they


turned Mr. Harman down at first, but
then Ms. Brown says she weakened,
tempted by the challenge. She adds that
Mr. Harman was deliciously gallant.
Katrina Heron, who had worked with
Ms. Brown at both Vanity Fair and The
New Yorker before signing on for a year
at the end of 2010 to help ease the merger,
said that Ms. Brown, so used to charming billionaires, had been the target of
Mr. Harmans charm this time around.
He called her princess, she said.
From the beginning, Ms. Brown and
Mr. Diller underestimated what it would
take to revive Newsweek. When Jon
Meacham, the magazines last editor under The Washington Posts ownership,
tried to turn Newsweek into an Economist-like ideas journal, the magazines
decline accelerated. Between 2006 and
2010, the magazines total circulation
shrank by half, to 1.6 million, according
to the Alliance for Audited Media. Advertising pages declined 79 percent between the first three months of 2006 and
the same period in 2010. It lost more than
$29 million in 2009. Then, in the months
between Mr. Harmans purchase and
Ms. Browns coming on, the place had
been further vacated by name-brand
writers like Howard Fineman and members of its ad staff.
It was a dead, beached whale. There
was no life in the creature, said the
writer Peter Boyer, who arrived from
The New Yorker just after the merger.
Ms. Brown and Mr. Diller both say a
factor in their agreeing to the merger was
optimistic sales estimates by The Daily
Beasts business side. In an interview in
July, Mr. Diller said, Our chief salesman
said, you know, Newsweek last year sold
950 pages of ads, you know theres been
no energy there, well at least sell 1,150
ads. And, I said, Well, you do that math,

we kind of break even. Well we didnt sell


11, 10 or 950, we sold 600 ads.
Ms. Brown said she planned to save
Newsweek by building a digital-age
magazine driven by the beat of the Internet, with the high-quality writing found
in traditional print. She argued that despite impossible conditions, she had succeeded admirably, citing Newsweeks
coverage of Dominique Strauss-Kahn,
the former chief of the International
Monetary Fund, in landing the first print
interview with the housekeeper in his
sexual assault case, and the issue devoted to the killing of Osama bin Laden.
But many of her colleagues say that
going back into print had brought out
Ms. Browns tendencies toward chaotic
management and indecision, running
the enterprise in what one former editor
who asked not to be named for fear of retribution, described as a state of panic.
Employees also say that the newsrooms never really merged. Instead of
using Beast writers to fill Newsweek,
she turned to her Rolodex and hired expensive talent like Simon Schama, Michael Tomasky and David Frum.
Mr. Boyer, a fan of Ms. Brown, said,
There was an awful lot of frustration on
the part of the young beasties who were
so good, half a dozen really good writers
and reporters who werent making it into
the magazine, and that was a mistake.
Newsweek had an older readership,
Ms. Brown says to explain why she
turned to some older writers, adding that
the magazine needed more attention.
Newsweek writers had been terribly
demoralized. I owed them some care.
SPENDING FREELY

But even longtime reporters were


shocked at Ms. Browns extravagance
in making assignments one former
editor called them fishing expeditions that seemed to belong to an
earlier, more flush era of publishing.
The magazine sent Mr. Boyer to Japan,
hoping he would get an interview with
Vice President Joseph R. Biden Jr., even
though he had been warned in advance
that it was very unlikely (and indeed it

NEWSWEEK, PAGE 17

Even real cable news finds satire in excessive race coverage


David
Carr
THE MEDIA E Q UAT IO N
On the MSNBC program All In last
week, the host, Chris Hayes, had a conversation about race with Cord Jefferson, a writer for the Web site Gawker.
Prompted by a news report about a
group of young people in Huntington
Beach, California, who looted and vandalized property, the pair lamented the
lack of community leadership and suggested that acting out in that manner
was a learned behavior.
It was a joke. The young people they
were talking about were white. And the
whole discussion was a put-on, a satire
meant to show how lame the hoary
race tropes of cable news have become.
As a comedy bit, it was well done.
Both men were straight-faced and
earnest. Mr. Hayes did a fine job of
bloviating his way through an introduction heavy with outrage: The story of
the white criminal culture is not a story

15

the mainstream media will tell you. But


once you scratch the surface, these stories are everywhere you look.
Mr. Jefferson was the designated finger-wagging scold, a black man taking
measure of white pathology. He said
they are learning this kind of behavior
in lacrosse camps, they are learning
this during spring break, they are learning this kind of behavior at Ivy League
fraternities where drug use and binge
drinking are normalized behavior.
Cable television news and humor are
generally matter and antimatter, with
self-selected audiences listening intently while self-serious anchors liontame guests fighting for the last sound
bite. Nuance does not do well on cable,
and complexity goes there to die. As a
result, something as fraught as race often ends up being covered in cartoonish ways during signal events like the
death of Trayvon Martin, an unarmed
black teenager shot and killed in a confrontation with a neighborhood-watch
volunteer early last year.
All the familiar trademarks of cable
silliness were there in the faux news
segment. Mr. Hayes and Mr. Jefferson
prattled on while a video news loop
showed, over and over, a handful of individuals trashing outhouses and a
bike store after a surfing contest, all
the while drawing lessons from thin air
and moralizing over fake sociological
claptrap. It was, in other words, a standard bit of cable news.

Speaking by telephone Thursday, Mr.


Hayes said that the risks of inserting
satire into a format built on sobriety
were worth it.
Its definitely entering dangerous
territory because the social contract
assumes that when I express opinions,
those are genuinely my opinions, he
said. You dont mess with that lightly,
but we thought it would be illuminating
to play with those conventions.
The segment on All In began with
a written warning the following is a
satirization of recent news analysis
and ended with a return to preachiness, with Mr. Hayes wagging a finger
(this time he meant it) and suggesting
that viewers needed to see that coverage of black America was just as silly.
But it was still a bit of a moment. Instead of waiting for Jon Stewart or
Stephen Colbert, hosts of The Daily
Show and The Colbert Report, to
clip and annotate cable vapidity,
MSNBC was temporarily acting as a
kind of self-cleaning oven, parodying the
excesses of cable from a near distance.
I think it was sort of brilliant, said
Jeffrey P. Jones, author of Entertaining Politics: Satiric Television and
Political Engagement. What they did
has been done before in all kinds of
ways, but the context, of putting the
satire right into a cable news show,
makes it very powerful.
Pop culture is perishable. Certain
things that seem like givens that

ROBERT CAPLIN FOR THE NYT

Chris Hayes turned All In into a put-on.

there will always be people at desks on


television telling us what we should
think about what happened that day
can eventually run out of gas.
The growing bankruptcy of cable
news reminds me of the rise and fall of
celebrity profiles in magazines. After
years of churning out breathless stories about this or that star, writers
grew bored with the formula. They
began to undermine it in self-conscious
ways, sometimes writing a profile that
was mostly about how dumb and hard
it was to write a profile. You can only
take so many rides in a convertible
with the starlet or watch as she sips
lattes at the Chateau Marmont before it
becomes hard to act as if an actual
transaction is under way.
Making news entertaining on a live
television show is no easy thing, either.
MSNBC and Fox News have to hunt
down red meat every day for their

political bases, while CNN has to


search for traction in the middle. On
those days when Edward J. Snowden is
not freed from the Moscow airport or a
man is not convicted of enslaving women, they still have to turn on the lights
and begin talking. It is simple math
that the people caught in the cameras
will eventually say and do dumb things
to fill airtime.
Beating up on cable newss excesses
is like riding down the hill after a
bloody battle and shooting the
wounded. That does not mean that
The Daily Show and The Colbert
Report are not great, only that they
operate in a target-rich environment.
And it is worth pointing out that they
serve as a primary source of information for many viewers.
In some respects, the fact that Mr.
Hayes broke some ground is not surprising. He is a relative newcomer to
the land of prime-time cable talkers,
does not have much in the way of ratings at risk and is more self-aware than
some on cable news. And NBC is a natural home for a wink: Brian Williams,
the anchor of NBC Nightly News,
has always been on the playful side
about the conventions of anchordom.
The biggest challenge is to find a
way to surprise viewers and subvert
expectations, Mr. Hayes said, adding
that he loved the generally positive response the segment had received.
The format is in need of evolution.

yet found a way to mend a broken


heart, but they are edging closer to manipulating memory and downloading
instructions from a computer right into
a brain.
Researchers from the Riken-M.I.T.
Center for Neural Circuit Genetics at
the Massachusetts Institute of Technology took us closer to this science-fiction
world of brain tweaking last week,
when they said they had been able to
create a false memory in a mouse.
The scientists reported in the journal
Science that they had caused mice to
remember receiving an electrical shock
in one location, when in reality they had
been zapped in a completely different
place. The researchers were not able to
create entirely new thoughts, but they
applied good or bad feelings to memories that already existed.
It wasnt so much writing a memory
from scratch, it was basically connecting two different types of memories. We
took a neutral memory, and we artificially updated that to make it a negative
memory, said Steve Ramirez, one of
the M.I.T. neuroscientists on the project.
Technologists are already working on
brain-computer interfaces, which will
allow us to interact with our smartphones and computers simply by using
our minds. And there are already gadgets that read our thoughts and allow
us to do things like dodge virtual objects in a computer game or turn
switches on and off with a thought.
But the scientists who are working on
memory manipulation are the ones who
seem to be pushing the boundaries of
what we believe is possible. Sure, it
sounds like movie fantasy right now,
but do not laugh off
the imagination of
Your
Hollywood screenthoughts and
writers; sometimes
a message
the movies can be a
will be comgreat predictor of
municated
things to come.
In the movie Eterto another
nal Sunshine of the
human
Spotless Mind, a
being.
character played by
Jim Carrey uses a
service that erases memories to wipe
his brain of his former girlfriend, played
by Kate Winslet. But it seems the
movies screenwriter, Charlie Kaufman,
was selling science short.
The one thing that the movie Eternal Sunshine of the Spotless Mind gets
wrong is that they are erasing an entire
memory, Mr. Ramirez said. I think
we can do better while keeping the
image of Kate Winslet, we can get rid of
the sad part of that memory.
In 2011, scientists working in collaboration with Boston University and
A.T.R. Computational Neuroscience
Laboratories in Kyoto published a paper on a process called Decoded Neurofeedback, which sends signals to the
brain through a functional magnetic
resonance imaging machine that can
alter a persons brain activity pattern.
In time, these scientists believe they
could teach people how to play a musical instrument while they sleep, learn a
new language or master a sport, all by
uploading information to the brain.
In February, Miguel A. Nicolelis, a
neuroscientist at Duke University in
North Carolina, successfully connected
the brains of two rats over the Internet,
allowing them to communicate with
their minds so that when one rat
pressed a lever, the other one did the
same.
Dr. Nicolelis said he has recently performed other experiments in his lab
where he has connected the brains of
four mice in what he calls a brain net,
allowing them to share information
over the Internet. In another experiment, he took two monkeys and gave
each of them half of a piece of information needed to move a robotic arm,
which required them to share the information through their brains.
Of course, in all the movies about
brain technology and enhancing memories there is usually a downside. In
Eternal Sunshine, after Mr. Carreys
character erases his memories, they reappear in a jumble. Hilarity (and insight into love and loss) ensues.
But some researchers do not appear
to be worried about that sort of thing. In
his book, Beyond Boundaries: The
New Neuroscience of Connecting
Brains with Machines and How It
Will Change Our Lives, Dr. Nicolelis
said he believed it is possible that brain
waves would be transmitted over the
Internet, allowing humans to communicate wirelessly without words or
sound.
I think this is the real frontier of human communication in the future. We
already can get our monkeys, and even
humans, to move devices just by thinking, he said. I can imagine the same
type of logic working for communication, where your thoughts and a message will be communicated to another
human being and they will be able to
understand it.
It looks as if mending that broken
heart, through manipulation of our
memories, might be closer than we
think.

16

....

| TUESDAY, AUGUST 6, 2013

INTERNATIONAL HERALD TRIBUNE

dealbook

finance business

Bottom line in verdict on trader: Greed


Window on
Wall Street

Pipeline plan
could redraw
the oil map

SUSANNE CR A IG, B E N PROT E S S


AND ALEXA N D R A ST E VENS ON

Inside the
Markets

NEW YORK When nine New York residents shuffled into a cramped jury
room in a federal courthouse in Manhattan on Wednesday, they were divided over Fabrice Tourres culpability
in a toxic mortgage deal sold to investors.
Over more than 13 hours, the five
women and four men pored over reams
of disclosure documents that Mr.
Tourre and his employer, Goldman
Sachs, had provided for investors in
2007, grappling with the nuances of the
Securities and Exchange Commissions
case. One juror, 32-year-old Tina Oommen, scribbled the various charges facing the former trader on a white board.
Others scoured the voluminous transcript from the three-week trial.
Tension mounted among the nine
who included educators, a stockbroker
an Episcopal priest and a digital advertising employee as the deliberations
dragged on.
It got really intense; it reminded me
of religion, said the Rev. Beth F. Glover,
the 47-year-old priest, who initially
struck a skeptical tone about aspects of
the governments case. She questioned
whether Mr. Tourres supposed violation
had been material, a finding that was
needed to rule against the former trader.
At 3:12 p.m. on Thursday, the jury
reached a verdict. Mr. Tourre, they decided, was liable on six of the seven
counts.
Interviews with five of the nine jurors
pulled back a curtain on the private deliberations in the S.E.C.s most prominent trial stemming from the financial
crisis. The jurors, speaking from their
homes and offices a day after the trial,
described the genesis of their decision.
They expressed sympathy for Mr.
Tourre, alternately calling him a scapegoat and a willing participant in Goldmans vast mortgage machine.
But ultimately, the jurors said, their
decision had come down to what they
saw as the letter of the law and, for
some, a broader concern that Mr.
Tourres actions underscored a fundamental problem with society: Wall
Street greed.
He is what Wall Street is all about,
and it scared me, Evelyn Linares, a
school principal, said Friday in an interview from her porch. You go in thinking you can make a difference, and you
get sucked in.
The S.E.C.s case hinged on its grim
portrayal of Wall Street.
In his opening argument to the jury,
Matthew T. Martens, the leading lawyer for the agency, depicted the case
against Mr. Tourre as an assault on
Wall Street greed, arguing that the
former trader had created a deal to
maximize the potential it would fail.
Mr. Tourre, Mr. Martens later declared in his closing remarks, was living in a Goldman Sachs land of makebelieve where deceiving investors
was not fraudulent.
That argument resonated with the
jurors.
Mr. Martens told us at the beginning that we would see this was all
about Wall Street greed, and we did get

S A BINA Z AWA DZ K I
A N D DAV ID S H E PPA RD
REUTERS

JUSTIN LANE/EUROPEAN PRESSPHOTO AGENCY

Fabrice Tourre, a former Goldman Sachs trader, leaving a courthouse in New York after being found liable for defrauding investors.

We dont think he deserved to


take the blame for everything,
but he did play along.
to see that, Ms. Linares said.
And jurors said that they trusted Mr.
Martens, with one describing the cleancut lawyer as Marine-like.
For Mr. Martens, the case was his final act at the S.E.C. He has already notified the agencys enforcement chiefs
that he will soon depart for a law firm, a
person briefed on the matter said.
For the S.E.C., whose credibility as a
regulator came into question after its
failure to forestall the crisis, the jury delivered a long-sought courtroom victory.
The triumph over Mr. Tourre follows one
disappointment after another for the
S.E.C., including two similar mortgagerelated cases that crumbled last year.
In an e-mail to the trial team after the
verdict, an S.E.C. official thanked the
lawyers for securing a victory. We
needed this, the official said.
Still, some critics have questioned why
the agency chose to make Mr. Tourre, a
midlevel employee who was 28 at the
time of the mortgage deal, the face of the
crisis. Not one executive at Lehman
Brothers, which filed Wall Streets
biggest bankruptcy ever at the height of
the crisis, was charged with wrongdoing.
Mr. Tourres lawyers seized on that
sentiment, painting the trader as a
scapegoat who had abandoned his Wall
Street career to pursue a doctorate in
economics from the University of Chicago. The lawyers also noted that senior
Goldman executives had approved the
deal.
The jurors were sympathetic to that
argument. After reflecting on Mr.
Tourres case, Beverly Rhett, a former
special education teacher known as Juror No. 2, commented: I could characterize him as somewhat of a scapegoat.
Ms. Glover, the priest, echoed those
remarks. It is a shame lower-level em-

Slimmer HSBC reports


10% rise in first-half profit
LONDON

Charges for bad loans


fall, especially in U.S., as
cost-cutting effort goes on
BY JULIA WERDIGIER

HSBC, the largest bank in Britain, said


Monday that earnings rose 10 percent in
the first half of the year, thanks in part to
lower charges for bad loans, especially
in the United States.
Profit rose to $14.07 billion in the first
six months of the year from $12.74 billion
in the period a year earlier, slightly below analysts forecasts. Loan impairments fell 35 percent to $3.1 billion during the first half.
Shares in HSBC closed down 4.4 percent Monday in London trading.
Douglas J. Flint, the banks chairman,
called the results solid, adding that
they were a result of the continuing reshaping of the group and from enforcing
appropriate cost discipline.
Like many of its rivals, HSBC has
been closing or selling some operations
to reduce costs and improve profitability. Under its chief executive, Stuart T.
Gulliver, the bank has exited 54 businesses worldwide and scaled back consumer lending in the United States,
where its acquisition of the subprime
lender Household International in 2003
has weighed on group earnings.
HSBC said it had exceeded its costcutting target for the year after saving
$800 million in the first half. As part of
Mr. Gullivers cost-cutting plan, which
was announced in 2011, HSBC is shedding about 30,000 positions. The bank
also sold its credit card unit in the

United States to Capital One Financial


and its stake in Ping An Insurance of
China. Mr. Gulliver said HSBC would
now slow the pace of its disposals.
Provisions for problem loans and other risks in North America fell to $696
million in the first half from $2.2 billion
in the period a year earlier.
Richard Hunter, head of equities at
Hargreaves Lansdown in London, said
the earnings were safe and dependable.
Despite the Household International
acquisition, HSBC has fared better than
some of its European competitors during the financial crisis, which started in
2008, because a large part of its earnings
come from faster-growing markets like
those in Asia.
HSBC acknowledged Monday that
growth in China, Brazil and other developing markets had been slowing recently but said it was confident those regions would continue to outpace Europe
and the United States.
Despite slower growth in the short
term, the long-term economic trends remain intact, Mr. Gulliver said. The
global economy will continue to rebalance toward the faster-growing markets, and trade and capital flows will
continue to expand.
The bank recently became embroiled
in a series of scandals that included the
sale of an insurance product to clients
who did not qualify for it and possible involvement in the London rate-fixing debacle. It made a record settlement for
charges of money laundering, agreeing
last year to a $1.92 billion settlement
with the U.S. authorities over accusations that it transferred billions of dollars for Iran and allowed Mexican drug
cartels to move money illegally through
its subsidiaries in the United States.

ployees get pulled in, she said. Theres


a part of me that felt it was very unfair.
Yet his lower-level status, jurors say,
did not erase what he had done.
They portrayed him as a cog, but in
the end a machine is made up of cogs
and he was a willing part of that, Ms.
Glover said.
Ms. Linares, the school principal,
said, We dont think he deserved to
take the blame for everything, but he
did play along.
The scheme, according to the S.E.C.,
involved the marketing of a mortgage
deal in 2007. At the heart of the agencys
case was the claim that Mr. Tourre and
Goldman had sold investors the deal
without disclosing a crucial conflict of
interest: A hedge fund that had helped
construct the deal also bet that it would
fail.
Mr. Martens also cited an e-mail in
which Mr. Tourre stated that the riskiest slice of the mortgage trade a
piece typically bought by someone betting that the deal would succeed was
precommitted, when in fact it was
not even going to be offered.
Mr. Tourre, his lawyers argued, corrected that misstatement in offering
documents that followed, calling that
slice N/A, or not applicable. But
some jurors said they did not find that
convincing, because the part the hedge
fund bought was also listed as N/A
when it was not.
His lucrative paycheck $1.7 million
in 2007, the year he assembled the
mortgage deal in question also
swayed some jurors.
Still, Ms. Glover was not initially convinced. She debated whether it was
material for investors to know the
hedge funds role. Industry practice
was also not to disclose, she said, reciting a line from the defenses playbook.
And when the S.E.C. quoted embarrassing love notes Mr. Tourre had sent to
his girlfriend, some jurors felt sympathy
rather than condemnation. Ms. Linares
also prayed for Mr. Tourre, and the other

witnesses, every day during the trial.


Other jurors were more adamant that
Mr. Tourre was liable. When they could
not agree on a particular charge, they
would shift to another issue.
Mr. Tourre lost, the jurors said, despite having performed well on the witness stand over three days. In fact, some
jurors questioned why Mr. Tourres lawyers had not kept him there longer.
It was a big shock to us that they
didnt ask more questions, Ms. Glover
said. He was likable and engaging, she
said, adding it would have been easier
for jurors if he had been more villainlike.
While the loss also raised questions
about the defense teams declining to
call a single witness, most jurors said
that decision had not swayed their
votes. According to legal experts, defense lawyers commonly present no defense when the government has
already called their client as a witness.
Its both a show of confidence and a
tactic to get the jury to focus on the fact
that the burden of proof rests with the
government, said Evan T. Barr, a
former federal prosecutor who now defends white-collar cases as a partner at
Steptoe & Johnson. I would not be
second-guessing the decision.
A lawyer for Mr. Tourre declined to
comment. Goldman Sachs, which settled
its part in the case by paying a $550 million fine in 2010, also declined to comment. The bank paid for Mr. Tourres defense, and is likely to continue doing so.
For Ms. Rhett, the retired teacher, the
trial ended just in time for her to make a
cruise. Reached late Thursday night, Ms.
Rhett said she returned home after the
verdict and began to read news articles.
I had no idea how big the case was. I
had not read anything or heard anything, she said.
William Alden contributed reporting.
ONLINE: DEALBOOK

Read more about deals and the deal


makers. nytimes.com/dealbook

NEW YORK TransCanadas plan to


build one of the longest oil pipelines in
the world has reverberated far beyond
Canadian shores.
The planned 2,700-mile, or about
4,300-kilometer, pipeline, which would
bring crude from the Canadian energy
capital of Alberta to refineries and
ports on the East Coast, has the potential to overturn the dynamics of the
North Atlantic oil trade, squeezing out
some imported crude to North America
and revitalizing ailing refineries.
The Energy East pipeline could also
reinforce North Sea Brent crude as the
worlds oil benchmark against which
giants like Saudi Arabia price their exports to the West, analysts say. It would
also open up the possibility of more Canadian heavy crude flowing to the U.S.
coast of the Gulf of Mexico.
The scale of the $12 billion pipeline is
hard to understate. Were it to start in
London, it would stretch all the way to
Tehran. In the United States, it could
carry crude oil from Los Angeles to
New York. And with a capacity of 1.1
million barrels a day, it could carry 30
percent of Canadas total daily oil production, or 6 percent of U.S. oil consumption.
In the short and medium term, this
isnt a project focused on exporting
heavier Canadian oil to the U.S. Gulf
Coast, said Mark Routt, a senior energy consultant in Houston at KBC,
who has a number of clients interested
in the project. The initial stage of this
project will be primarily about sending
light sweet crude to Canadian refineries.
That could effectively wipe out
Canadas need to import crude for its
eastern refineries. They now import
around 700,000 barrels a day from
North and West Africa and Latin America because Canadas own supplies lie
across a vast wilderness in the far West.
Africa and Latin America will have to
find a new home for their barrels by
2017 or 2018, if the pipeline is completed
on time.
The twinning of the project with a
plan to build and operate a new deepwater export port in Saint John, New
Brunswick, will give oil producers an
outlet for the 400,000 barrels a day left
over after Canadas eastern refineries
have consumed their share.
The next stage would be to potentially expand the project to ship light
sweet crude to refineries on the U.S.
East Coast, Mr. Routt said.
Several refineries on the U.S. East
Coast have shut down in recent years
because of poor economic performance.
Access to Canadian sweet crude less
expensive than European and African
imports because of transportation costs
and the lower U.S. benchmark price
could support the plants that remain.
Canadian oil producers have even
greater ambitions for the pipeline, with
some looking at the feasibility of ex-

WITH

porting to Asia. The chief executive of


TransCanada, Russ Girling, said oil producers in Alberta were looking to reach
markets as far away as India.
John Auers, the senior vice president
at the refinery specialist Turner, Mason
& Co. in Dallas, said that while it was an
ambitious goal, it could one day be possible for Canadian crude to compete
with Middle Eastern producers for market share on the Indian subcontinent.
Sandy Fielden, an analyst at the consulting firm RBN Energy in Austin,
Texas, said the majority of Canadas
heavy crude exports from the pipeline
would still end up closer to home.
The obvious competition will be
with heavier Mexican and Venezuela
crudes into the U.S. gulf coast, he said.
European refineries are a less likely
destination, Mr. Fielden added, as most
are geared toward lighter crudes like
Brent.
Another outcome the East Energy
line might bring is the reinforcement of
Brent crude oil as the worlds premier
benchmark, analysts said, amid talk
that the grade is losing relevance and
could be challenged by a rival exchange
in Asia, where demand is rising.
A preponderance of light sweet
crude moving East could consolidate
Brents benchmark status, said Ed
Morse, the managing director of commodity research at Citigroup. Saudi
Arabia and Iran and other Middle East
producers feeding into the European
market would be increasingly dependent on benchmarks defined in the local
Atlantic Basin markets.
Several analysts said the increased
capacity of the Energy East pipeline
from an initial proTransCanadas posal of 800,000 barrels a day reflected
proposed line
uncertainty about
could cut oil
Canadas other grand
imports and
pipeline projects.
help revitalize
TransCanadas
own Keystone XL
ailing U.S.
plan, which would
refineries.
expand its ability to
ship heavy crude to
gulf coast refineries by 830,000 barrels
a day, has been waiting for years for
U.S. approval and has become a target
for environmental groups.
Proposals for pipelines to the West
Coast, which would allow the country to
ship oil to the lucrative Asian market,
are opposed by Canadian indigenous
people, or First Nations.
Now, there are a lot of moving parts,
but if we assume there are ongoing
problems with getting approval for
Keystone XL and Enbridges planned
pipeline to the West Coast of Canada,
then you can see why theyve expanded this project, Mr. Fielden said.
TransCanada has said that one project does not replace the other and that
it has long-term commitments for Keystone XL, which is designed to carry
heavier crude from the tar sand fields.
North America is adjusting its infrastructure to the landscape that has
been emerging in the oil industry in the
past five years with the advent of shale
oil and gas, and the Canadian tar sands.
Pipeline companies have spent billions
of dollars building new pipes or reversing the direction of old ones.
Mr. Auers, of Turner Mason, said there
was always a risk of building too much,
but added that the Energy East pipeline
was a major stage in North Americas
adjustment to its energy renaissance.
We look at North America as a
whole, he said. If you export Canadian light crude, that provides room for
U.S. light crude.
Sabina Zawadzki and David Sheppard
are Reuters correspondents.

Private equity is testing a new model in Asia


HONG KONG

BY STEPHEN ALDRED
REUTERS

In three years, the global private equity


firm KKR has provided over $1.5 billion
in loans to companies in India, a business customarily handled by stateowned and private-sector banks.
Encouraged by that success, the firm
known as Kohlberg Kravis Roberts
when it rose to prominence with its hostile $25 billion takeover of the food and
tobacco giant RJR Nabisco in 1989
plans to expand the niche business in
China and across Asia.
The move by private equity into lending comes at a time when buyout deals
in Asia are few and far between and as
traditional banks retreat. Apollo Global
Management, KKR and Olympus Capital are raising credit funds as they seek
out alternative sources of income. At
least $6.6 billion is being raised by 12
funds for investment in Asia, according
to Private Equity International and
Thomson Reuters data.
At the same time, credit across Asia
has grown tight, leaving small businesses and family-owned firms short of
capital as big banks focus their attention
on top-tier clients.
The business model adopted by
private equity in Asia is very different
from the big buyouts that characterize
the sectors activities in the United States
and Europe. In Asia, loans as small as $50
million are a growing part of KKRs business as it expands a model developed by
its head for India, Sanjay Nayar, formerly
the chief executive for Asia at Citigroup.
This country is going to take time to
develop into a sophisticated private
equity market, Mr. Nayar said.
Theres no point in having a single
product strategy.
Big buyouts are rare in Asia, but the

LAM YIK FEI/BLOOMBERG NEWS

KKR is among the private equity firms moving away from big buyouts in Asia, but it is
reportedly evaluating making a bid for ParknShop, a supermarket chain in Hong Kong.

millions of small entrepreneurs in the


region, from farmers to software developers, are starved of capital. And
powerful families that dominate Asias
emerging economies are reluctant to
sell stakes in their businesses. But they
will take a loan.
The next wave of credit funds is expected to target China, where global
firms are studying a little-known, highrisk strategy that would allow them to
get money into the mainland to provide
high-interest loans to cash-starved
small and midsize enterprises.
The 4.3 million such businesses in
China account for 60 percent of gross
domestic product and 75 percent of jobs
created. But when they need funds, they
find they need to turn to a shadow market that includes pawn shops, credit
guarantee firms and trust companies.
Shoreline Capital, with offices in the

United States and China, started by buying loans in or near default in China. It
added lending to its activities when the
supply of such loans dried up in 2009 after
China increased its lending to companies
during the global financial crisis.
A lot of private companies were coming to us wanting debt finance, said
Ben Fanger, co-founder of Shoreline.
Even though the government was
flooding the market with loans, it was
going predominantly to state-owned enterprises and government projects.
Since Mr. Nayar joined in 2009, KKR
has organized a series of loan syndicates, putting $100 million of its balance
sheet into a total of $1.5 billion in loans.
Private equity in India lends through
financial companies, which are more
flexible than banks. Financial companies
can give loans where banks steer clear:
to buy land, to refinance real estate debt

or to buy out a private equity investor.


Private equity funds can make internal
return rates of 25 percent, while returns
from credit funds can be as low as 9 percent. Private equity firms like the stable
income stream, though, and see lending
as a way to open doors to buyout deals.
There are huge opportunities for
private equity and private debt in India, Mr. Nayar said. Public markets
are very shallow, and the banks are undercapitalized. In India, KKR has lent
money to large companies like Max India, a diversified health care company,
as well as to smaller companies.
Shoreline, which has provided credits
to local government projects and
private companies, takes whole companies or real estate projects as collateral
in return for loans at interest rates
above 20 percent. The borrower gets the
asset back if they repay the loan.
Short-term borrowing costs in China
recently jumped when the central bank
allowed interbank rates to surge, dealing a further blow to companies in need
of cash. Funds like Shoreline see themselves providing a lifeline to small and
midsize enterprises.
These companies view us as their
saviors, Mr. Fanger said. Shoreline
funds make returns of over 20 percent,
similar to regular private equity funds.
While the returns are high, so are the
risks. Carlyle, Asian Development
Bank, GE Capital and Citigroup Venture
Capital invested more than $100 million
in Credit Orienwise, a loan guarantee
company based in Shenzhen. By 2007,
the company was one of the biggest in
China in its field and was being lined up
for an initial public offering.
But the investment unraveled after a
report from Deloitte raised questions
about possible fraud by one manager
and a large write-down. Investors never
confirmed their losses, and Carlyle still
lists the company as an asset.

....

17

TUESDAY, AUGUST 6, 2013 |

THE GLOBAL EDITION OF THE NEW YORK TIMES

companies markets business

Pig farmers
try to halt
deadly virus
PIGS, FROM PAGE 14

Though it is perhaps too soon to predict how the virus may affect the price of
pork products, the epidemic has already
caused economic hardships for individual farmers, particularly in conjunction with feed prices sent soaring by
drought last year. An average farm with
2,500 sows could lose nearly every newborn for four weeks if it is hit with the virus, with the deaths of about 5,000 piglets and financial losses of nearly
$200,000.
Adult pigs that recuperate typically
build immunity to the virus, making recurring outbreaks rare.
One month can do a lot of damage,
said Mark Greenwood, senior vice president for AgStar Financial Services,
which provides financing to hog farms.
Its really devastating if youre finally
turning the corner.
The fear has inspired a renewed vigilance across the hog industry to ensure
that workers are using basic practices
like disinfecting their boots and trailers
after visiting packing plants, which researchers have identified as high-risk
locations for picking up the virus.
Yet questions remain about how the
virus got to the United States, raising
anxiety among producers and farmers.
The world got a lot smaller that
day, Tom Burkgren, executive director
of the American Association of Swine
Veterinarians, said of the time when the
first domestic case was confirmed. If
P.E.D.V. can get into the United States,
what about some of the even more nasty
viruses?
Preliminary results from a survey led
by the association, which some had
hoped would identify a link among infected farms, suggested that more information was needed. Dr. Burkgren said
investigators would take a closer look at
feed-related risk factors.

B R I E F LY

An editor humbled in her return to print

NEWSROOM TROUBLES

The newsroom side was also struggling.


Employees point to covers like those featuring Regis Philbin and a reimagining
of an aged Princess Diana as evidence
that Ms. Brown struggled to find sub-

The Daily Beast, a Web site that merged with Newsweek, which has now been sold.

jects to create that most elusive but desirable of magazine outcomes: buzz. One
employee said that Ms. Brown ordered
up a Newsweek feature on Breaking
Bad well after an article on the show
had appeared in The Beast. Ms. Brown
does not accept the idea that she did not
have her finger on the popular pulse.
She also ticked off a series of measures: Under her leadership Newsweek
went from losing 30 percent of its ad rev-

LO N D O N

that the dynamic had changed now that


Mr. Diller, who had expected to split the
costs, would carry the whole load.
Even though Mr. Diller had cut the
losses from printing the magazine, he
complained at dinners and social events
that Newsweek wasnt working out,
according to Fareed Zakaria, another
former Newsweek employee who had
also turned down the top post. On April
29, 2013, at the Milken Global Conference in Beverly Hills, California, Mr.
Diller told Bloomberg TV, I wish I
hadnt bought Newsweek. It was a mistake.
A month later when it was announced
that Newsweek was up for sale, it was
almost anticlimactic.
The magazine, a shell of its original
self, is published online once a week.
The total number of employees at the
combined NewsBeast has shrunk about
a third. Now Newsweek will be published for 30 to 60 days, and during that
time, International Business Times is
expected to decide on its staffing needs,
the company said.
Ms. Brown still defends the idea of
putting the two properties together, and
the magazine she made. The kind of
the shame of it was you saw how it
worked but the economics were too
much. It would have taken five more
years. It could have been a great synergy.
In the end, Ms. Brown is left with a
conference business, Women in the
World, and The Daily Beast. But the
good news, she says, is that The Beast
has been enriched by Newsweeks
DNA through its advertiser base,
through the quality of its writers and
through traffic, which she says is up 28
percent year over year.
For all her optimism about The Beast,
Ms. Brown still seems a bit wistful about
the state of affairs in her industry.
It doesnt matter how talented you
are right now. You used to be judged by
your performance but now it doesnt
matter what you do, she said. It is
quite a business.

NEWSWEEK, FROM PAGE 15

never happened). With several days


notice, the Pulitzer Prize-winning fashion writer Robin Givhan was sent to
Paris to track down the Vogue editor
Anna Wintour, even though Ms. Wintour had declined to speak.
Ms. Brown also ordered high-priced
photography and investment in time
and money for articles that were killed
or relegated to small spaces. Newsweeks former creative director, Dirk
Barnett, posted on his Tumblr a montage of the 82 different cover ideas Ms.
Brown had asked him to design in seven
days, while also employing six other
agencies and illustrators to come up
with ideas.
During the interview, at first, Ms.
Brown made light of the criticism: Only
82? she laughed. How hard is it to take
a picture and slap a headline on it?
Then she flatly denied having ordered so
many covers. She said she had sought
out two other agencies at most and both
had been free. As for assignments, she
said that is what magazine editors do.
Certainly, the media environment
was not good although that might
have been entirely predictable. Still, Ms.
Brown put the blame for Newsweeks
troubles almost entirely on factors outside her control.
She pointed out that the advertising
market had gone off a cliff in 2011. She
acknowledged, too, that the magazine
needed more digital sales employees
and the posts remained unfilled, but
said that was not her responsibility,
since she never ran the business side.
But employees on the business side said
their bosses were often paralyzed by
Ms. Browns indecision on how to proceed with various projects because they
feared her wrath if they got it wrong.

World Business

enue a quarter to gaining 5.5 percent in


the last quarter in print, and digital subscriptions expanded threefold during
2012, to 60,000.
But the venture was running out of
time. On April 12, 2011, Mr. Harman, the
chief supporter of Newsweek, died. The
Harman heirs did not announce until July 23, 2012, that they would no longer
foot Newsweeks bills. But internally it
was clear from the moment of the death

Further signs of recovery seen


in Britain and the euro zone
A rapidly expanding services sector in
Britain and a slightly improved manufacturing picture in the euro zone
provided more signals Monday that the
economies of Europe may finally be
emerging from recession.
The Markit/CIPS survey of purchasing managers in Britains services sector showed that activity increased
sharply in July, leading the index to
move up to 60.2 in July from 56.9 a
month earlier, the highest level since
December 2006 and a bigger gain than
many economists had expected. A
reading above 50 denotes growth.
At the same time, Markits reading
for the euro zone showed a slight rise in
manufacturing activity for July, the
first positive news in 18 months.
Markits reading of euro zone purchasing managers hit 50.5 in July from 48.7 a
month earlier, the first expansionary
reading since January 2012.
A report Monday from the Institute for
Supply Management showed growth
picking up in nonmanufacturing companies in the United States, currently the
lone driver of global growth. (REUTERS)

U.S. orders BP to answer


charges of gas price fixing
The U.S. Federal Energy Regulatory
Commission ordered the British oil giant BP on Monday to respond to allegations that it had manipulated natural
gas prices, threatening the energy
company with fines of as much as $29
million.
The regulator contends that BP manipulated the natural gas market at the
Houston Ship Channel in 2008 from
mid-September through November.
The commission said BP had 30 days
to file a reply to its order, which requires
BP to show why a case should not go
forward. BP said it would vigorously
defend itself against the allegations.
The energy commission began the investigation in 2011. The order issued
Monday marks the next stage in proceedings and indicates that the regulator
believes there is a viable case. (REUTERS)

Dairy giant from New Zealand apologizes for China scare


lion worth of milk powder imports last
year originated in New Zealand, Reuters reported.
In 2008, the Chinese dairy company
Sanlu and 21 others were found to have
added the toxic chemical melamine to
bulk up formulas. Six children died and
thousands fell ill as a result. Fonterra
owned part of Sanlu at the time.
We totally understand that theres
concern of parents and other consumers around the world, Mr. Spierings said at the news conference. Par-

ents have the right to know that infant


nutrition and other dairy-related
products is 100 percent safe.
The prime minister of New Zealand,
John Key, said the government had similar concerns. Were talking about the
potential health implications for babies,
and thats something the government
takes extremely seriously, he said at a
news conference Monday.
The economic development minister,
Steven Joyce, flew to Auckland on Monday to meet with senior members of
Fonterras management.

World markets

Interest rates

MILK, FROM PAGE 14

Monday, Aug. 5

United States
U.S.
Dow Jones indus.
U.S.
S.&P. 500
U.S.
S.&P. 100
U.S.
Nasdaq composite
U.S.
NYSE composite
U.S.
Russell 2000

Last
15,603.63
1,706.34
763.79
3,686.88
9,667.59
1,061.55

Chg
54.73
3.33
1.91
2.71
22.48
+1.69

12 mo.%
+21.2
+25.0
+21.3
+26.7
+24.5
+38.1

The Americas
Mexico
IPC
41,896.26
Canada
S.&P./TSX
12,603.25
Brazil
Bovespa
48,430.68
Argent.
Merval
3,447.21
Chile
Stock Market select 3,782.23

155.34
closed
43.36
11.58
38.31

+2.8
+9.5
12.8
+45.1
8.1

Europe and Middle East


Euro zone
Euro Stoxx 50
Britain
FTSE 100
Germany
DAX
France
CAC 40
Italy
FTSE MIB
Spain
IBEX 35
Switzerland SIX
Sweden
OMX 30
Russia
RTS
Czech Rep. Prague Stock Exch.
Israel
TA-25
Asia
Japan
H.K.
Australia
China
S. Korea
India
Taiwan
Singapore
Thailand
Indonesia

2,809.08
6,619.58
8,398.38
4,049.97
16,757.24
8,560.80
7,979.40
1,251.77
1,337.30
948.01
1,201.76

Nikkei 225
14,258.04
Hang Seng
22,222.01
All Ordinaries
5,093.77
Shanghai composite 2,050.48
Kospi
1,916.22
S.&P. CNX Nifty
5,689.00
Taiex
8,138.63
Straits Times
3,241.79
SET
1,423.43
Jakarta composite
4,640.78

1.92
28.29
8.56
+4.32
21.95
13.20
+15.47
+1.23
+0.91
closed
7.18
208.12
+31.04
4.89
+21.06
7.16
+11.10
+38.75
12.34
+2.49
closed

+24.1
+16.9
+27.1
+25.3
+26.2
+34.3
+24.5
+18.3
1.3
+6.6
+9.6
+64.8
+12.9
+18.7
2.9
+2.5
+8.8
+12.0
+6.8
+18.5
+13.4

Chg

12 mo. ago

3-month govt

Ask yield

Chg

12 mo. ago

2.475%
2.245
1.688
0.761
2.652

+0.067
+0.067
+0.042
0.041
+0.035

1.443%
2.038
1.244
0.766
1.476

Britain
France
Germany
Japan
United States

99.930%
0.028
0.062
99.974
0.040

+0.001
0.004
0.001
+0.003
unch.

0.433%
-0.159
-0.437
n.a.
0.090

Benchmark rates

Last

Latest chg

0.326%
0.123
0.038
0.094
0.104

+0.031
+0.002
+0.001
+0.001
unch.

0.074%
-0.063
-0.099
0.087
0.157

Britain (bank)
Canada (overnight)
Euro zone (refinancing)
Japanese (overnight)
United States (prime)

0.50% 0.50 (Mar. 5)


1.00 unch. (May. 14)
0.50
0.25 (May. 7)
0.10
unch. (Jun. 25)
3.25 0.75 (Dec. 16)

10-year govt.

Ask yield

Britain
France
Germany
Japan
United States
1-year govt

Britain
France
Germany
Japan
United States

0.50%
1.00
0.75
0.10
3.25

dal. Then, early this year, it was disclosed that in September 2012, Fonterra
had discovered residues of the agricultural chemical dicyandiamide in some
of its whole milk powder, skim milk
powder and buttermilk powder. Although the company said the risks were
minimal, use of the chemical on farmland was suspended.
Fonterra is a farmers cooperative
and is not publicly listed, but it trades
nonvoting units as shares on the New
Zealand and Australian stock markets.
On Monday, the shares opened down

about 8 percent on the New Zealand exchange but went on to recover some of
their value and closed at 6.86 dollars, a
decline of 3.65 percent.
The New Zealand dollar fell by about
a cent, to 0.7740 U.S. cents, in early trading before regaining some ground.
In Shanghai, China Modern Dairy
shares rose 7.6 percent, while Biostime,
which imports the bulk of its dairy
products from Europe, surged 8.6 percent, Reuters reported. But Want Want
China, which obtains most of its raw
milk from Fonterra, fell 3.2 percent.

For online listings and past performance visit

International Funds

www.morningstar.com/Cover/Funds.aspx

m fj QMe\p m Mm

w e[nf jNjO J]Me I m

m fj QMe\p eNnOjMeZ[pOE pnOZ m Mm ,

City
Chicago
N.Y.
Chicago
Chicago
Chicago
N.Y.
N.Y.
N.Y.
N.Y.

Metals, energy
Aluminum
London
Copper
N.Y.
Gold
N.Y.
Palladium
N.Y.
Platinum
N.Y.
Silver
N.Y.
Brent crude
London
Light sw.crude N.Y.
Natural gas
N.Y.

Units
$/bu
$/lb.
$/bu
$/bu
$/cwt
$/ton
$/lb.
cts/lb.
cts/lb.

Delivery Last
Sep.
4.67
Oct.
0.85
Aug.
13.31
Sep.
6.43
Sep.
15.99
Sep.
2,373.00
Sep.
1.20
Oct.
16.57
Sep.
143.25

$/m. ton
$/lb.
$/tr.oz.
$/tr.oz.
$/tr.oz.
$/tr.oz.
$/bbl.
$/bbl.
$/mln.BTUs

3 mo. 180,900
Sep.
3.17
Dec. 1,301.40
Sep.
736.05
Oct.
1,452.00
Sep.
19.70
Sep.
108.78
Sep.
106.82
3 mo.
3.32

Chg
0.09
unch.
unch.
0.18
+0.19
+82.00
+0.01
0.22
+1.05
300
0.01
9.10
+6.35
+0.50
0.21
0.17
0.12
0.03

$1
Australia
1.122
Brazil
2.304
Britain
0.652
Canada
1.038
China
6.125
Denmark
5.624
Euro zone 0.754
India
60.850
Japan
98.560
Mexico
12.670
Russia
32.928
Singapore 1.271
S. Africa
9.851
S. Korea 1113.50
Sweden
6.587
Switzerland 0.929
Taiwan
29.938
U.S.
-

m fj QMe\p pOM[jON ZnJN m ]pNN

1
1.487
3.054
0.864
1.376
8.119
7.455
80.728
130.68
16.796
43.649
1.684
13.058
1476.06
8.732
1.231
39.686
1.326

1
1.721
3.532
1.592
9.391
8.622
1.157
93.393
151.17
19.427
50.489
1.948
15.104
1707.33
10.102
1.425
45.904
1.534

One
100 ruble

One
One
Swiss Can.
franc doll.

1.138 0.034
1.208 1.081
2.336 0.070
2.479 2.218
0.661 0.020
0.702 0.628
1.053 0.315
1.117
6.212 0.186
6.591 5.897
5.704 0.171
6.055 5.415
0.765 0.023
0.812 0.726
61.767 1.848 65.544 58.594
- 2.993 106.10 94.940
12.900 0.000 13.637 12.201
33.400
- 35.440 31.704
1.289 0.039
1.368 1.224
10.000 0.299 10.602 9.485
1129.30 33.809 1198.47 1071.29
6.681 0.200
7.090 6.342
0.942 0.028
- 0.894
30.400 0.909 32.223 28.828
1.015 0.030
1.076 0.963

Euro
Dollar
Pound
Swiss franc
Yen

Chg.

0.754 0.001
0.652 0.002
0.929 unch.
98.560 0.370

Chg.

1.326
0.864
1.231
130.68

0.002
0.005
0.003
0.710

Chg.

1.157 0.006
1.534 0.005
1.425 0.005
151.17 0.060

Asia
Australian dollar
1.122 0.001
1.487 0.004
1.721 0.005
Chinese renminbi
6.125 0.004
8.119 0.021
9.391 0.021
Hong Kong dollar
7.756 unch. 10.284 0.016 11.898 0.039
Indian rupee
60.850 0.240 80.728 0.419 93.393 0.004
Indonesian rupiah 10280.0 unch. 13631.3 20.560 15769.5 51.400
Malaysian ringgit
3.230 0.026
4.283 0.041
4.955 0.024
Philippine peso
43.500 0.110 57.681 0.233 66.729 0.049

World 100
Company
U.S.

Asia (cont.)

$1

Chg.

Chg.

Chg.

Singapore dollar
1.271 unch.
1.684 0.004
1.948 0.005
South Korean won 1113.50 10.350 1476.06 16.530 1707.33 10.700
Taiwan dollar
29.938 0.042 39.686 0.130 45.904 0.074
Thai baht
31.350 0.090 41.570 0.057 48.091 0.294
Europe
Czech koruna
Danish krone
Hungarian forint
Norwegian krone
Polish zloty
Russian ruble
Swedish krona
Turkish lira

19.529 0.074
5.624 0.010
225.37 1.080
5.930 0.006
3.180 0.009
32.928 0.098
6.587 0.012
1.931 0.007

25.895
7.455
298.84
7.863
4.217
43.649
8.732
2.561

0.059
0.001
0.984
0.020
0.018
0.047
0.032
0.005

29.957
8.622
345.72
9.097
4.878
50.489
10.102
2.962

0.211
0.044
2.778
0.020
0.002
0.302
0.014
0.020

The Americas

$1

Argentine peso
5.518
Brazilian real
2.304
Canadian dollar
1.038
Chilean peso
513.79
Mexican peso
12.670
Venezuelan bolivar 6.284

Chg.
0.004
0.017
unch.
1.890
0.017
unch.

Middle East and Africa


Egyptian pound
6.995 0.001
Israeli shekel
3.549 0.010
Saudi riyal
3.750 unch.
South African rand 9.851 0.066

Chg.

7.317
3.054
1.376
681.29
16.796
8.333

0.006
0.017
0.003
1.482
0.008
0.013

1
8.465
3.532
1.592
788.15
19.427
9.640

Chg.
0.034
0.036
0.004
5.459
0.084
0.031

10.730
5.444
5.753
15.104

0.033
0.002
0.019
0.146

Last

Abbott Laborat.
36.54
Amazon.com
298.8
Apple
468.5
AT&T
35.68
Bank of America 14.79
Berkshire Hath. 177,490
Caterpillar
83.81
Chevron
124.0
Cisco Systems
26.25
Citigroup
52.93
Coca-Cola
40.26
Comcast
45.75
ConocoPhillips
67.18
Exxon Mobil
91.11
General Electric
24.51
Google
900.8
Home Depot
79.66
IBM
194.8
Intel
22.92
J&J
93.94
JPMorgan Chase 56.21
Kraft Foods
56.66
McDonalds
99.27
Merck
48.60
Microsoft
31.72
Occidental Petrol. 88.29
Oracle
32.74
P&G
81.45
Pepsico
84.24
Pfizer
29.15
Philip Morris
89.14
Qualcomm
66.06
Schlumberger
82.76
United Technol.
106.9
UPS
88.03
Verizon
50.22
Visa
184.9

52-wk price range


Chg 12 mo.% Low
Last ( ) High
0.21
44.9
32.05
5.4 +29.5
220.0
+5.9
22.9
390.5
0.09
5.0
33.14
0.05 +106.0
7.17
+990 +40.5 126,183
0.49
+0.8
80.43
1.0 +13.5
101.6
+0.06 +66.8
15.38
0.08 +102.2
26.18
+0.04 +53.8
35.97
+0.03 +34.1
31.61
0.05 +22.9
54.40
0.84
+6.1
85.10
0.19 +19.4
20.01
5.8 +43.3
613.4
0.57 +55.0
51.39
0.3
+0.2
185.5
0.30
11.5
19.36
0.45 +37.2
67.21
0.28 +59.8
35.17
0.84 +61.1
43.66
+0.07 +10.8
84.05
+0.06 +10.7
40.64
0.17
+8.7
26.37
0.64
+3.1
73.58
+0.17
+9.4
29.58
+0.16 +28.2
63.51
0.05 +17.3
68.02
0.22 +21.9
23.49
0.46
1.0
82.39
0.69 +12.2
57.43
0.13 +16.8
67.77
0.9 +43.6
72.9
+0.11 +17.4
70.02
0.03 +12.6
41.40
+0.9 +43.0
126.7

72.13
312.0
702.1
39.00
14.95
178,275
99.49
127.8
25.94
53.27
43.09
45.84
66.12
95.20
24.86
924.7
80.54
215.8
26.88
93.21
56.67
58.29
103.59
49.44
36.27
94.75
36.34
82.54
86.80
31.08
96.44
67.97
83.81
105.6
91.45
53.91
194.6

Company (Country)
U.S. (cont.)
Last
Wal-Mart
Walt Disney
Wells Fargo

78.64
65.91
44.28

52-wk price range


Chg 12 mo.% Low
Last ( ) High
0.11
0.60
0.21

+6.2
+34.6
+32.8

67.61
47.06
31.43

79.86
67.67
44.63

The Americas
AmBev (BR)
Ame`r. Mo`vil (MX)
Bradesco (BR)
Ecopetrol (BR)
Itau Unibanco (BR)
Petrobras (BR)
R. Bk of Can. (CA)
Toronto Dom. (CA)
Vale (BR)

85.91 1.48
13.40 +0.06
27.80 0.40
4,335
+5
29.48 0.42
15.85 0.15
64.43 closed
87.37 closed
28.65 +0.26

+10.4
23.9
11.4
17.1
6.1
21.4
+26.7
+12.0
20.6

74.02
11.62
26.00
3,850
26.80
13.55
50.85
77.99
26.00

93.80
18.02
38.40
5,790
36.90
24.35
65.66
88.89
42.60

Middle East and Africa


Saudi Basic In. (SA)95.00 +0.75

+5.6

87.00

98.25

Europe
A-B InBev (BE)
74.16 +0.12
BASF (DE)
66.66 1.22
BG Group (GB)
1,200
+6
BP (GB)
456.2
+0.8
Brit. Am. Tob. (GB) 3,534
12
ENI (IT)
17.17 0.09
Gazprom (RU)
128.9
+0.5
GDF Suez (FR)
16.90 0.05
Glaxo (GB)
1,730
+17
HSBC (GB)
718.2 36.5
LOre`al (FR)
127.7
+0.5
LVMH (FR)
140.1
0.6
Nestle` (CH)
64.65 +0.15
Novartis (CH)
67.40 0.15
Novo Nordisk (DK) 976.0
+8.0
R. Dutch Shell (GB)2,099
5
Roche (CH)
230.5
+1.8
Rosneft (RU)
238.9
+1.3

+13.6
+15.4
4.8
+5.8
+1.9
+4.1
13.0
7.2
+15.7
+32.3
+30.3
+15.2
+6.9
+16.4
+5.1
4.6
+32.2
+23.8

63.90
57.75
1,000
416.6
3,070
15.29
107.2
14.12
1,322
529.2
95.0
117.0
58.35
55.45
853.5
2,030
168.0
192.8

78.66
75.85
1,350
484.5
3,784
19.48
169.5
20.23
1,791
770.7
136.7
143.2
69.50
73.65
1,070.0
2,310
258.5
275.4

Company (Country)
Europe (cont.)
Last
Sanofi (FR)
Santander (ES)
SAP (DE)
Sberbank (RU)
Siemens (DE)
Statoil (NO)
Telefo`nica (ES)
Total (FR)
Unilever (GB)
Vodafone (GB)
Volkswagen (DE)

76.71
5.50
56.65
96.22
83.99
127.1
10.86
40.48
2,697
200.4
184.0

52-wk price range


Chg 12 mo.% Low
Last ( ) High
+0.35
0.04
+0.34
0.76
+0.24
+0.2
0.01
0.06
+2
+1.0
+1.3

+17.3
+18.8
+10.5
+8.4
+22.9
11.2
+24.4
+8.4
+18.0
+6.8
+35.4

63.75
4.51
51.26
84.31
66.52
123.0
8.72
35.25
2,237
154.8
133.5

86.67
6.62
64.80
110.74
86.88
154.5
11.58
41.84
2,900
199.9
186.7

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Data are at 1700 U.T.C. Prices are in local currencies.


Source: Reuters

Infographics by: CUSTOM FLOW SOLUTIONS

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3.23
3.22
39.00
74.21
6.71
21.92
92.55
35.25
17.36
4,275
4.47
732.0
5,550
165,800
11.28
72.07
1,576,000
9.44
6,640
115.5
34.06

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Asia
Agric. Bank (CN)
2.47 +0.01
1.6
2.40
Bank of China (CN) 2.69 +0.01
2.2
2.54
BHP Billiton (AU) 35.75 unch. +11.6
30.65
CBA (AU)
73.76 0.06 +30.3
53.98
CCB (HK)
5.76 0.03
+9.5
4.84
China Life (CN)
13.55 +0.23
27.4
12.91
China Mobile (HK) 83.15 unch.
5.8
75.10
Chi. Shenhua (HK) 22.45 0.10
22.7
18.20
CNOOC (HK)
14.20 0.02
8.2
12.26
Honda Motor (JP) 3,720
+10 +55.4
2,319
ICBC (CN)
3.92 +0.01
+3.7
3.64
Mitsubishi UFJ (JP) 634.0
9.0 +69.1
345.0
NTT (JP)
5,200
10 +42.1
3,555
NTT DoCoMo (JP)155,100 200 +18.4 112,800
PetroChina (HK)
9.13 0.06
4.9
7.87
Rio Tinto (AU)
59.62 +0.31
+9.6
48.63
Samsung El. (KR)1,274,00012000
+0.9 1,172,000
Sinopec (HK)
5.80 +0.01
17.7
5.08
Toyota Motor (JP) 6,360
70 +108.9
2,868
TSMC (TW)
100.5 unch. +25.6
76.3
Westpac Ban. (AU) 31.37 0.09 +33.3
22.61

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The companies with the largest market capitalization, listed alphabetically by region. Prices shown are for regular trading.
A+
or
indicates stocks that reached a new 52-week high or low.

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9.275 0.015
4.706 0.020
4.973 0.008
13.058 0.063

Exchange rates
Major currencies $1

August 5, 2013

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The private equity firm Hellman &


Friedman is acquiring Hub International, a global insurance brokerage
firm, in a deal that values the company
at $4.4 billion.
Hub, which began as a merger of 11
Canadian insurance brokerage firms in
1998, was taken private by Apax Partners, the London-based equity firm, and
Morgan Stanley in 2007 for about $1.8
billion. Hubs senior management will
continue to have a stake in the company.

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Private equity company to buy


global insurance brokerage

For information please contact Clare Chambers


Fax +44 (0)20 7061 3529 | e-mail cchambers@nytimesglobal.com

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Cross rates

Futures
Agricultural
Corn
Cotton
Soybeans
Wheat
Rice
Cocoa
Coffee
Sugar
Orange juice

The trade minister, Tim Groser, said


at a news conference that, It would be
nave to think were going to get away
without a bloody nose, but lets hope the
damage is limited to that.
According to a report by Rabobank,
Fonterra had $15.7 billion in sales last
year. Among dairy companies, that
ranked behind only Nestl, Danone and
Lactalis.
The contamination is the third controversy the company has faced in the past
six years.
First there was the melamine scan-

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The Independent Mark of Quality


Morningstar Analyst Research and Ratings for Funds
www.morningstar.co.uk

18

....

| TUESDAY, AUGUST 6, 2013

business

INTERNATIONAL HERALD TRIBUNE

HUNT IS ON FOR VACCINE


FOR PIGLET-KILLING VIRUS

WITH

PAGE 14 | BUSINESS FRONT

U.K. seeks
symbolic
victories

Paul
Taylor
I NS IDE EUR O P E
LONDON Britains long-running political civil war over Europe is as much
about symbols as it is about substance.
Thus, advisers to Prime Minister
David Cameron are looking for one or
two symbolic trophies he can claim in a
renegotiation of the European Unions
treaty before he asks Britons to vote in
support of continued Union membership in a referendum promised for 2017.
According to a person with direct
knowledge of Mr. Camerons thinking,
London wants to erase or amend the
goal of an ever closer union that has
featured in the preamble of Union
treaties since the founding 1957 Treaty
of Rome.
To many Britons, those three words
stand for an inexorable one-way journey in which national sovereignty ebbs
to Brussels and the undeclared final
destination is a European superstate.
Ever closer union has long been a
red rag to John Bull, the patriotic cartoon Englishman draped in a Union
Jack who feels that although his country signed up to a common market in
1973, it has become entangled in ever
more intrusive European governance.
We understand and respect the right
of others to maintain their commitment
to this goal. But for Britain and perhaps for others it is not the objective, Mr. Cameron said in January.
His aides are hoping to airbrush out
the offending phrase or make it clear
that it applies only to those, notably in
the euro area, who want to pursue
deeper integration.
Another symbol in Londons sights is
the concept of European citizenship,
established by the 1992 Maastricht
Treaty. To British sovereigntists (and

Foreign Office lawyers), Europeans are


citizens of their nation-states, not of the
Union. In practice, European citizenship confers few rights, other than an
entitlement for long-term Union residents of another member state to vote
in local and European Parliament elections in that country. But it means that
Britons carry burgundy-colored passports like other Union nationals with
the words European Union embossed
on the cover above the United Kingdom of Great Britain and Northern Ireland and the royal coat of arms.
The person familiar with Mr. Camerons thinking said that a return to the
traditional black British passport without the offending Union label could be
another symbolic victory for Mr.
Cameron.
During a speech in Berlin in May,
Foreign Secretary William Hague pointed to some of the main areas in which
Britain wanted change in the substance of Union law, especially in social
legislation. Britons could not understand why Brussels has to interfere in
how long junior doctors can work or
why someone from another member
state should be able to continue to
claim benefits in the U.K. even after
they have moved
back to their own
London
country, he said.
is hoping to
Scrapping or
remove the
loosening rules that
phrase ever
limit the workweek to
closer union
48 hours, guarantee
employees 11 hours of
from E.U.
rest in any 24-hour
treaties.
period and give temporary agency workers the same rights as permanent staff
members, are high priorities, British officials say. Several other Union members, notably among the Central and
East European countries that joined the
bloc in the past decade, also want to
modify the work-time legislation.
But for core countries of Western
Europe like France and Germany,
those rules are among the few social
achievements that balance out the Unions business-friendly economic
agenda. Social Europe is dead, the
person close to Mr. Cameron said.
People in Europe believe Britain
killed it with the eastern enlargement,
and in a way we did by bringing in
those East European countries who
made it a race to the bottom.
Mr. Cameron says he also wants to
complete the single market, cut down
Union bureaucracy and increase the
role of national parliaments. But he is
unlikely to press old ambitions to
prune the Unions Common Agricultural Policy, and he faces resistance from

partners irked by British cherry pick


ing of Union policies.
In a gesture to euro-skeptical Conservative lawmakers, the government
announced last year that it would opt
out of more than 130 E.U. law-and-order cooperation measures under the
Lisbon Treaty. With less fanfare, it
quietly asked last month to opt back in
to 35 of those provisions, including the
European Arrest Warrant, which allows the transfer of suspects between
member states without lengthy extradition procedures.
Just how sensitive the European debate is was illustrated by the way the
government slipped out the first three
of a series of fact-finding reports on
how E.U. membership affects Britain.
It waited until Parliament was in recess and released the weighty studies
without a news conference or an accompanying political summary on the day a
royal baby was born. Pro-Europeans
hailed the core finding that the British
economy benefits substantially from
membership in the Unions single market, while euro-skeptical newspapers
chose to highlight the steep cost of European regulation for British business.
Some critics of E.U. membership said
the studies missed the real point: the
loss of national sovereignty, which they
regard as more important than economic arguments. Nigel Farage, the
leader of the U.K. Independence Party,
which has attracted many Conservative
voters by campaigning for a British exit
from the Union, dismissed the review
as a cynical and futile P.R. exercise.
That contest between cost-benefit
analysis and ideological fundamentals
prefigures a fierce and uncertain referendum campaign if the Conservatives
win a 2015 general election.
In his quest for E.U. treaty change he
can sell to voters, Mr. Cameron is betting on support from Chancellor Angela Merkel of Germany because Berlin values Britains free-marketeering
role in balancing out French interventionism and trade protectionism. Germany is afraid of getting into bed in a
mnage deux with France, the person close to the prime minister said.
But he acknowledged that even if
Britain secured changes in symbols
and substance, a vote to stay in the Union was far from assured, not least because Yes campaigners could easily
be depicted as a cosmopolitan elite, out
of touch with the people.
Paul Taylor is a Reuters correspondent.
ONLINE: INSIDE EUROPE

Read past columns by Paul Taylor.


global.nytimes.com/business

REUTERS BREAKINGVIEWS

STOCK INDEXES

+60%

Politics outweighs finance in Dassault sale

+40
+20
0
2012

2013

UNITED STATES S&P 500

1,706.34

3.33

EUROPE DJ Stoxx 50

2,809.08

1.92

+24.1

208.12

+64.8

JAPAN Nikkei 225

14,258.04

52-week

+25.0%

CURRENCIES

0%

10

20
2012

2013

EURO

1= $1.33

0.002

YEN

100= $1.01
POUND

1= $1.53

52-week

+6.9%

+0.004

20.6

+0.005

1.7

COMMODITIES

0%

20

40
2012

2013

OIL Nymex light sw. crude

$106.82 a barrel

0.12

GOLD New York

$1,301.40 a tr. oz.10.60


CORN Chicago

$4.67 a bushel

0.13

52-week

+16.1%
19.4
41.8

Data as of 1700 U.T.C.

Source: Reuters
Graphs: Custom Flow Solutions

TCI, a London-based hedge fund, is


singing to the choir in telling EADS to
sell its stake in Dassault Aviation.
Thomas Enders, the chief executive of
European Aeronautic Defense & Space,
has already indicated his desire to get
rid of his companys nonstrategic
minority holdings. Engineering an exit
from Dassault would be hard, but not
impossible.
Just under 51 percent of Dassault
Aviation is held by the family-controlled Groupe Industriel Marcel
Dassault, with EADS owning 46 percent and the rest publicly traded. The
strategic logic of a sale by EADS is
clear. Dassaults Rafale fighter jet competes directly with EADSs Eurofighter.
There are no synergies. Rather, the
stake ties up EADS capital that could be
better deployed in the core business or
returned to shareholders. At current
market prices, the shares are worth
about 4.3 billion, or $5.7 billion 12
percent of EADSs market value.
Dassaults medium-term prospects
are less rosy than EADSs. Military
budgets are in decline and the market
for corporate jets is fiercely competi-

tive. These challenges may already be


priced into Dassault shares, which
trade at just 5.5 times forward earnings
before interest, taxes, depreciation and
amortization, while less-profitable
European peers trade at a multiple of
6.9. But the small free float probably
also weighs on the price.
The obstacle to a sale is politics.
EADS has to consult the French government before any deal. Paris, which
wants to protect a strategically important industry, has pre-emption rights.
The way forward would be for EADS
to seek a stock-market placing of about
half its holding. That would improve
Dassaults liquidity and attract new investors. But it would prevent any one investor from building a blocking minority, assuaging political jitters. EADSs
remaining stake would be an attractive
nibble for Groupe Industriel Marcel
Dassault, or could be placed on the market in the future, politics permitting.
It seems like childs play. Reality may
be different. But Mr. Enders doesnt
need to sell. If he cant do a good deal, he
should enjoy Dassaults dividends until
the opportunity arises. OLAF STORBECK

The textbooks and the way things are


Reality is not cooperating with conventional economic thinking. Relative to
what theory teaches, there is too little
growth also too little inflation and too
much enthusiasm in stock markets.
There is a recovery, which is continuing at a decent pace in the United
States, taking root in most of Europe
and, more doubtfully, arriving in Japan.
But the theory says that huge amounts
of fiscal and monetary stimulus should
have produced much more growth. It
just is not happening. The latest U.S.
employment numbers were all too typical. They were clearly positive, but the
work force remains too small and is
getting bigger at a painfully slow pace.
Still, there is an economic recovery,
and the market for U.S. government
bonds is doing what theory says it
should: The yield on 10-year bonds is
up from 1.8 percent to 2.7 percent so far
this year. But theory also says recovery
should push up commodity prices and
inflation. That is not happening. Oil is
flat, copper is down, and leading central
bankers, outside Britain, are worrying
about too-low inflation rates.
The best recovery so far is probably

in stock markets. They dipped on fears


of tighter U.S. monetary policy, but the
losses have been fully reversed in the
United States and Britain, with Europe
moving steadily higher and Japan still
caught in the Abenomics fervor. Still, it
is hard to know whether higher share
prices reflect greater optimism about
gross domestic product growth or confidence that slow G.D.P. growth precludes a fast increase in rates.
The experts are lost because the conventional model of how the financial
system interacts with the real economy
has evolved too little since the huge and
largely unexpected financial crisis.
The stimulative efforts of governments and central banks help the
highly leveraged financial system stay
afloat, but only a small portion of the
funds actually reach the real economy.
In such an unconventional financial
world, the conventional wisdom is
likely to stay wrong. Expect more of the
unexpected. EDWARD HADAS
For more independent commentary and
analysis, visit www.breakingviews.com

The downside of the upsell: Airline fees that make you feel like driving
On the
Road
JOE S HARK E Y
Google Maps puts the distance from my
home in Tucson, Arizona, to the San
Diego Convention Center at about 421
miles, a drive of a bit over six hours.
Even so, I almost decided to drive on
Sunday, rather than fly, to attend the annual Global Business Travel Association
convention, which opened here Monday.
But Southwest Airlines had a convenient nonstop, a little over an hours flying
time (though, of course, its over four
hours total from home to airport and
airport to hotel). So flying made sense.
Why was flying rather than driving
even a close call? Well, like a lot of business travelers I routinely hear from,
Ive become so annoyed with airlines
and airports that taking the car is increasingly an option, even on trips up
to 500 miles or so.
The airlines are adding to that sentiment with an aggressive new emphasis
on blocking out large numbers of seats
in coach cabins that are available for
the basic fare. That is, when you go to
book a flight at the posted fare, you

Travelers forecast

routinely find that only the least-desirable seats like a middle seat in a row
at the rear of the plane are actually
available for that price. Most of the rest
are available only if you pay extra.
On July 20, for example, I flew on
United Airlines from Phoenix, Arizona,
to Tampa, Florida. When I booked that
ticket, almost a month in advance, only
a few seats were available without extra charge all middle seats in the
back of the plane.
Uniteds booking site informed me
that all of the other complimentaryassignment seats that is, seats
available without having to pay extra
were taken. The better seats those
with more legroom, for example
were available for fees that ranged
from $37 to $91 on the round-trip flight.
Did I pay extra to avoid being wedged
into a middle seat back by the toilets?
Yes I did and as such I am an example
of just the kind of traveler the airlines
are banking on to lift one segment of
their growing ancillary-fee revenue, the
pot of gold that increasingly is the industrys cushion for continued profitability.
A very rough estimate of the size of
that revenue can be made from data
compiled by the U.S. Transportation Department, which show that airlines collected $6 billion in fees for checked bags
and reservations-change penalties last
year, compared with $1.3 billion in 2007.
T-STORMS

High/low temperatures, in degrees Celsius and


degrees Fahrenheit, and expected conditions.

SHOWERS

C ..................... Clouds
F .......................... Fog
H ........................ Haze
I.............................. Ice
PC.......... Partly cloudy
R ......................... Rain

SNOW

Abu Dhabi
Almaty
Athens
Bangkok
Barcelona
Beijing
Belgrade
Berlin
Boston
Brussels
Buenos Aires
Cairo
Chicago
Frankfurt
Geneva
Hong Kong
Istanbul
Jakarta
Johannesburg
Karachi
Kiev
Lagos
Lisbon
London
Los Angeles
Madrid
Manila
Mexico City
Miami
Moscow
Mumbai
Nairobi
New Delhi
New York

Tuesday
C
F

Sh ................. Showers
S .......................... Sun
Sn ...................... Snow
SS....... Snow showers
T ........ Thunderstorms
W ...................... Windy

42/34 108/93 S
33/20 91/68 PC
33/25 91/77 S
34/26 93/79 T
28/21 82/70 S
33/26 91/79 T
38/22 100/72 S
33/22 91/72 PC
26/17 79/63 S
24/16 75/61 T
17/10 63/50 PC
37/25 99/77 S
29/22 84/72 PC
29/19 84/66 T
27/16 81/61 T
31/28 88/82 PC
29/21 84/70 S
32/24 90/75 T
16/5 61/41 S
31/27 88/81 PC
28/15 82/59 S
27/22 81/72 PC
26/17 79/63 S
22/15 72/59 PC
24/17 75/63 PC
33/18 91/64 PC
30/25 86/77 T
25/13 77/55 T
32/25 90/77 T
28/16 82/61 PC
30/24 86/75 Sh
22/13 72/55 C
33/27 91/81 T
26/20 79/68 PC

Wednesday
C
F

42/36 108/97 T
32/18 90/64 T
33/24 91/75 S
32/25 90/77 T
29/21 84/70 PC
33/23 91/73 T
38/22 100/72 S
33/21 91/70 T
26/19 79/66 PC
23/15 73/59 R
17/7 63/45 R
37/25 99/77 S
28/16 82/61 T
27/19 81/66 T
24/16 75/61 T
32/27 90/81 Sh
31/22 88/72 S
31/24 88/75 T
17/7 63/45 S
31/28 88/82 PC
29/16 84/61 S
26/23 79/73 T
25/17 77/63 S
24/13 75/55 Sh
24/16 75/61 PC
30/16 86/61 PC
32/25 90/77 T
24/12 75/54 T
32/26 90/79 T
26/15 79/59 S
30/24 86/75 Sh
25/13 77/55 C
31/26 88/79 T
26/20 79/68 T

But the data encompass just two big


categories of ancillary revenue, and do
not take into account the new revenue
airlines are gaining from things like the
upsell, which is how they typically
refer to initiatives like charging extra
fees for all but the least desirable coach
seats. Another tactic is to sell priority
boarding, that is,
better places in line
We are long
during the confoundpast the dising boarding process,
cussion about giving a passenger
whether fees
an early crack at
should exist
crowded overhead
bin storage space.
or not.
The bonanza isnt
limited to the United
States. A report last month by IdeaWorks, an airline revenue consultant,
noted that airlines all over the world
have been watching this demonstration
of ancillary revenue power by carriers
in the United States, and many are devising similar initiatives, especially for
flights within Europe.
For airlines, the model has obvious
appeal. United Airlines, for example, reported that its ancillary revenue grew 13
percent in the second quarter from a
year earlier. The sale of coach seats designed Economy Plus was especially
strong, James E. Compton, the chief
revenue officer, said in an earnings call
on July 25. The Economy Plus upsell

FINLAND

15-20

FLURRIES
RAIN

LATVIA

15-20

HIGH

MOSTLY
CLOUDY

RUSSIA

ESTONIA

ICE

STATIONARY
COMPLEX
WARM
COLD

20-25

DENMARK

25-30

LITH.

Meteorology by
AccuWeather.
Weather shown
as expected
at noon on
Tuesday.

BELARUS

LOW

POLAND
30-35
20-25

UKRAINE

SLOV.

25-30

HUNGARY
>35
30-35

PORTUGAL

BULGARIA

ITALY
ALB.

SPAIN
>35

GREECE

25-30
TURKEY
30-35

30-35

25-30
MOROCCO

ROMANIA

SYRIA
LEBANON

30-35
TUNISIA

ISRAEL

ALGERIA
>35

>35
JORDAN
SAUDI
ARABIA

>35

EGYPT

LIBYA

Nice
Osaka
Paris
Riyadh
Rome
San Francisco
Sao Paulo
Seoul
Shanghai
Singapore

31/22 88/72 S
34/26 93/79 T
24/17 75/63 T
40/29 104/84 S
34/21 93/70 S
18/13 64/55 PC
26/16 79/61 S
32/26 90/79 T
41/30 106/86 PC
30/26 86/79 T

29/21 84/70 T
34/28 93/82 PC
24/12 75/54 R
40/27 104/81 S
34/23 93/73 S
16/12 61/54 PC
26/16 79/61 S
33/25 91/77 PC
41/30 106/86 S
31/25 88/77 T

Stockholm
Sydney
Taipei
Tel Aviv
Tokyo
Toronto
Tunis
Vienna
Warsaw
Washington

23/15
22/8
35/27
33/23
31/25
23/18
37/24
34/24
33/19
28/21

73/59
72/46
95/81
91/73
88/77
73/64
99/75
93/75
91/66
82/70

PC
PC
T
S
T
PC
S
S
S
T

24/16 75/61 PC
18/8 64/46 S
35/27 95/81 T
33/23 91/73 S
32/25 90/77 T
26/18 79/64 T
40/24 104/75 S
37/25 99/77 S
34/22 93/72 S
28/22 82/72 T

continues to perform very well, growing


37 percent year over year in the second
quarter, he said.
After years of protesting that airlines
make it difficult to budget for added-on
fees, since many involve sales to the
passenger after the initial fare booking,
corporate travel managers are just trying to keep pace with the changes in the
way airlines charge.
We are long past the discussion
about whether fees should exist or not,
said Michael W. McCormick, the executive director of the Global Business
Travel Association. But travel managers continue to insist that suppliers
provide better transparency on
price. Thats still an ongoing debate
with all sectors of business travel not
just airlines, he said.
Im glad he makes that distinction,
because hotels are also busily devising
extra fees. When I checked into the
Hilton San Diego Bayfront hotel on Sunday, the desk clerk offered me a room
with a better view for an extra $20.
I declined to pay up. Which explains
why this is being written from the 19th
floor of the Hilton Bayfront with a
sweeping view of the industrial dock
where Dole Food transfers fruit from
ships onto trucks. Im watching workers unload a big banana boat right now.
E-MAIL:

jsharkey@nytimes.com

CHI BIRMINGHAM

INTERNATIONAL TRAVELER
HEATHROW DINING GUIDE DIRECTS
FLIERS TO AIRPORTS BEST BITES

To help the estimated 13.8 million passengers passing through Heathrow Airport this summer find the right meal, the
airport has teamed up with two celebrity
chefs to release its first food guide.
Compiled by John Torode and Gregg
Wallace, the guide, Food on the Fly,
has comprehensive overviews of every
bar, cafe and restaurant in the airport,
as well as a breakdown of options by terminal. It also includes tips about the
best and worst foods to eat before flying.
Mr. Torode and Mr. Wallace compiled
the guide using information they
gathered while eating their way around
the airport. The pair have put a strong
emphasis on healthy options, smaller
dishes and British talent.
The airport will distribute 10,000 copies of the guide to passengers in the
coming months. A digital version is
available on the airports Web site.
PIE CAMP IN MONTANA HELPS
TO CONQUER A FEAR OF PASTRY

Two trends learning vacations and


nostalgia for good old-fashioned Americana come together at one resort this

autumn. Paws Up in western Montana


is offering its first pie camp Oct. 11-14.
Kate McDermott, a baker who
teaches Art of the Pie classes in Port
Angeles, Washington, will lead the Upper Crust camp, offering demonstrations and hands-on sessions between
optional outdoor activities, including
horseback riding and fly fishing.
Pie school tackles what Ms. McDermott considers the No.1 obstacle: fear
of pastry. The camp itinerary also includes a seminar in food photography
and a pie-eating contest. All-inclusive
tuition for two costs $5,361.
PARIS
HELIUM-FILLED ZEPPELIN PLIES
SKIES OVER FRENCH COUNTRYSIDE

Tourists seeking an original way to take


in the French countryside have a new
way to do it: in a helium-filled zeppelin.
On Sunday, Airship Paris began flights
over the forests and villages northwest
of Paris. The company says it is the first
commercial airship in the Paris region in
30 years. The zeppelin has room for 12
passengers, who can move about the
large-windowed cabin to take in views of
the Seine River and the Chteau de Versailles from 300 meters, or 1,000 feet, up.

Flights, which leave from the airport


in Pontoise, northwest of Paris, take
about one hour. Four routes are offered,
and tickets cost 450, or about $600, per
person. (AP, IHT)
FESTIVALS CELEBRATE GERMAN WINE

German wine has gained in prominence


over the years, and the city of Stuttgart
is spreading the gospel with festivals
and tours. From Aug. 28 to Sept. 8, more
than 500 types of wine will be served
during the Stuttgart Wine Village. Visitors can sample regional wines and local
food specialties. Other wine festivals include the Fellbach Autumn Festival
from Oct. 11 to 14.
MALAYSIA AIRLINES ALTERS ROUTES

Malaysia Airlines has announced additional flights to Katmandu, Nepal, and a


new route to Tokyo. The airline will fly
twice a day between Kuala Lumpur and
the Nepalese capital, beginning Oct. 27.
The carrier has canceled its twiceweekly flights between Osaka, Japan,
and Kota Kinabalu, on the island of
Borneo. It will instead fly three times a
week from Kota Kinabalu to Tokyo Narita, starting Oct. 28.

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