Extracts.

Taliban Willing to Negotiate - Official.
 
Four weeks into the US-led air campaign, a senior Taliban official said on
Wednesday the ruling militia is willing to negotiate an end to the conflict.
But he demanded proof of Osama bin Laden's involvement in the September 11
terror attacks. 
"That's the message for Americans," chief Taliban spokesman Amir Khan
Muttaqi said in an interview with the first Western reporter allowed into
Kabul since the bombing began October 7.
US President Bush launched the air assault after the Taliban refused to hand
over bin Laden, chief suspect in the terrorist attacks on the World Trade
Center and the Pentagon.
"We do not want to fight," Muttaqi told The Associated Press. "We will
negotiate. But talk to us like a sovereign country. We are not a province of
the United States, to be issued orders to. We have asked for proof of
Osama's involvement, but they have refused. Why?"
State Department spokesman Richard Boucher said the Taliban already had
plenty of proof. 
"All one has to do is watch television to find Osama bin Laden claiming
responsibility for the September 11 bombings. There is no question of
responsibility. There is no question of the responsibility of the Taliban,
and there's no question of what they should do," Boucher said.
During the interview, Muttaqi, who also is education minister, exuded
confidence, arguing in effect that Afghanistan's weakness was its strength.
US bombing, he maintained, will not crack the Taliban, which claims no
senior figure in its movement was killed in the four-week campaign.
If there were no negotiations, Muttaqi, along with other Taliban leaders,
indicated that the war would turn into a conflict on the ground in which the
Taliban would prevail - as the Afghans did against the Soviets in the
1979-1989 war. 
During an interview with visiting foreign journalists in Kandahar, Foreign
Minister Wakil Ahmed Muttawakil challenged the United States and Britain to
send in ground troops.
"Let them come here in the ground," he said. "We will fight and let's see
who will win." 
Although Islamic governments have distanced themselves from the Taliban,
many Muslims sympathize with bin Laden and the embattled Taliban, and
Muttaqi hinted at a possible Muslim backlash against the United States if
the conflict continues.
"America, what do you want to do?" Muttaqi said. "Don't make Muslims
everywhere angry. Muslims have no problem with Americans. It is American
policy they disagree with. America should not oblige thousands and thousands
of Muslims the world over to feel for the victims of the bombing because
they will cause more trouble for America."

****

President Jiang Calls for Closer Ties with Philippines


China hopes to develop a long-term stable friendship with the Philippines on
the basis of good-neighborly cooperation as well as mutual trust and mutual
benefit, Chinese President Jiang Zemin said Tuesday afternoon when meeting
visiting Philippine President Gloria Macapagal Arroyo.
The two presidents exchanged views on bilateral relations and other issues
of common concern, and reached a consensus on a number of issues.
The Chinese and Philippine peoples have had a time-honored friendly
relationship since the Tang Dynasty (618 - 907), Jiang said.
Since the two countries established diplomatic relations 26 years ago, Jiang
said, they have carried out concrete exchanges and cooperation, which have
benefited both peoples.
In order to further enhance bilateral relations with the Philippines in the
new century, Jiang proposed that China welcomes various personages from the
Philippine government and parliament as well as academic and journalistic
circles while keeping continuous visits and contacts by the two countries'
leaders. 
Jiang also proposed that the two countries deepen their cooperation in
trade, agriculture, investment, poverty elimination, information technology,
telecommunications, tourism, justice, and fisheries and to crackdown on
multinational crime.
As for the disputes remaining between the two countries, Jiang continued,
the two sides should calmly and properly deal with these issues, not
allowing them to undermine the bilateral friendship and basic interests of
the two peoples. 
Both developing countries, China and the Philippines extensively share
common interests in international and regional affairs, Jiang said.
Under the current world situation, the two sides should strengthen
communication and cooperation in international organizations such as the
United Nations (UN), the World Trade
Organization (WTO) and the Asia-Pacific Economic Cooperation (APEC), he
said. 
After it steps into the WTO, China will further open its domestic market to
worldwide competitors. China would like to see Philippine enterprises invest
in China, especially in the western region, Jiang said.
At the same time, Jiang said, the Chinese government will encourage Chinese
enterprises to invest in Southeast Asian countries, including the
Philippines. 
Arroyo said she agrees with Jiang's proposal on enhancing the bilateral
relations. She said the Philippines is willing to develop a long-term,
healthy and extensive friendship with China.
Arroyo said the bilateral cooperation has great potential and prospects. The
Philippines wants to intensify mutual trust between the two countries.
The Philippine president highly values the modernization drive made by the
Chinese people. She said that China has become a main force pushing forward
world peace and stability.
China's entry into the WTO will not only benefit the world economy but also
provide a good opportunity for trade and economic cooperation between the
two countries, she said.

Philippine President Calls for Further Economic Cooperation with China
With China's impending entry into the World Trade Organization (WTO), both
the Philippines and China will further their cooperation and exchanges in
agriculture, electronics and manufacturing as well as in the service
industry, said Philippine President Gloria Macapagal Arroyo Tuesday.
Arroyo made the remarks at a China-Philippines Business Forum. The
Philippines and China began their ties including close business links during
the Chinese Song Dynasty (960-1279), Arroyo said. She hopes that more
Chinese corporations will set up business in the Philippines, and called on
Philippine enterprises to enter the Chinese market.
China has drawn much worldwide attention because of the momentum of its
economic development and is playing an active role in the process of
economic globalization, she said.
In an effort to draw more foreign investors including the Chinese, the
Philippine government is now making regulations and taking measures to
improve its infrastructure, she said.
As a country with a large rural population, she said, the Philippines
received much help from China for its agricultural modernization. China has
provided the Philippines with advanced agricultural machinery and its own
hybrid rice technology, she said, adding that the Philippines wishes to
strengthen cooperation with China in water treatment systems and rural road
construction. 
Yu Xiaosong, president of the China Council for the Promotion of
International Trade, also addressed the forum. "Sino-Philippine economic and
trade relations have been developing steadily since the establishment of
diplomatic relations in 1975," Yu said.
"The bilateral trade volume reached 3.1 billion U.S. dollars in 2000, an
increase of 37 percent from 1999," he said.
He also mentioned a business council between China and Association of
Southeast Asian Nations (ASEAN), whose first meeting is to be held in
Indonesia next month. "I believe this
institution will bring cooperation between China and ASEAN as well as China
and the Philippines to a new level," he said.

China, the Philippines Sign Eight Documents of Cooperation
China and the Philippines signed Tuesday a Sino-Philippine treaty on
extradition and other seven documents of cooperation.
Chinese President Jiang Zemin and the visiting Philippine President Gloria
Macapagal Arroyo oversaw the signing after their official talks held at the
Great Hall of the People.
The governments between the two countries signed two memorandum of
understanding (MOU) on striking against transnational crimes and on
combating illegal drug trafficking, the random use of narcotics and
strengthening supervision on chemicals which may allow easy drug making.
Chinese and Philippine sports authorities signed a MOU for promoting sports
exchanges. 
The foreign ministries between the two countries exchanged notes on the
establishment of the Philippine consulate-general in Shanghai.
Trade promotion departments between the two countries signed two agreements
for boosting two-way trade.
A Chinese company signed an agreement on offering loans for the construction
of a pumping station in the Philippines.


****
Chinese Top Legislator Leaves for Five-Nation Tour.
 
Li Peng, chairman of the Standing Committee of the National People's
Congress, left Beijing  Wednesday morning for an official and goodwill visit
to Algeria , Cuba, Argentine, Uruguay and Tunisia.

He is visiting the five nations at the invitation of President of the
National Assembly of Algeria Ben Salah, President of the Council of States
of Cuba   Fidel Castro and the National Assembly of People's Power of Cuba,
the Congress of Argentine, Vice-President of Uruguay and President of the
National Congress of Uruguay Luis Hierro and President of the National
Assembly of Tunisia Fouad Mebazaa.

During the visit, Li Peng will have an in-depth exchange of views with the
leaders of the five nations on bilateral ties, as well as regional and
international situation.

He will meet with a wide range of personages from the parliaments and other
walks of life in a bid to enhance friendship, common understanding and
cooperation. 

The visit will promote the all-round development of China's friendly
relations and cooperation with the Northern African and Latin American
countries in the new century.

Li's entourage includes his wife Zhu Lin, He Chunlin, secretary general of
the NPC Standing Committee, Yao Zhenyan, member of the NPC Standing
Committee and vice chairman of the NPC Financial and Economic Committee, Yu
Zhenwu, member of the NPC Standing Committee, Liu Mingzu, chairman of the
standing committee of the Inner Mongolia  Autonomous Regional People's
Congress, Amudun Niyaz, chairman of the standing committee of the Xinjiang
Uygur 

Autonomous Regional People's Congress, Zhang Xuwu, vice chairman of the NPC
Law Committee, Lu Congmin, deputy secretary general of the NPC Standing
Committee, Yang Wenchang, vice foreign minister, and Wu Wenchang, director
of Li Peng's office.

Those who saw Li and his party off include Tian Jiyun, vice chairman of the
NPC Standing Committee; Luo Gan, state councilor; Jiang Yikang, deputy
director of the General Office of CPC Central Committee, Yu Youmin and Jiang
Yunbao, deputy secretary generals of the NPC Standing Committee, and Wu
Donghe, ministerial-level official of the Foreign Ministry, and diplomatic
envoys of the five countries.

****

Chinese, German Government heads Confer in Beijing.
 
Chinese Premier Zhu Rongji held talks Wednesday afternoon with German
Chancellor Gerhard Schroeder, who arrived in Beijing earlier Wednesday on a
three-day official visit as Zhu's guest.
Before the talks, Zhu presided over a welcoming ceremony for Schroeder.
Schroeder arrived Wednesday afternoon and this is Schroeder's third visit to
China at the invitation of Chinese Premier Zhu Rongji. His entourage
consists of more than 180 people, including the interior minister,the
economics minister,parliamentarians and entrepreneurs.




****

Anthrax Scares at Israeli President's Residence.
 
The first floor of Israeli President Moshe Katsav's residence was evacuated
Wednesday after employees discovered an envelope containing an unidentified
white powder. 
A team from the Environment Ministry has sent the envelope and the
suspicious materials to the biological institute for further examination,
and the residence might be closed for 24 hours, according to the website of
Ha'aretz daily. 
Anthrax is a disease caused by spore-forming bacteria and it could be used
as a deadly and cheap agent in a biological war.
The huge anthrax-led panics originated from the United States have scared in
Israel for some weeks, though all the suspicious materials have so far been
proved negative. 
Israeli Prime Minister Ariel Sharon convened top security officials in the
day to discuss the detailed countermeasures against potential attacks from
chemical, biological and nuclear warfare on the country.

****

Police Uncover Falun Gong Diehards' New Way of Spreading Message.
 
Diehards of the outlawed Falun Gong cult in the Chinese mainland have been
found using new self-made devices to secretly spread messages under the
guidance of overseas bases of the cult, headed by Li Hongzhi, according to
the police. 
Police have discovered and confiscated the devices in Beijing and another
ten provinces in the country and closed down the underground nests where the
cult diehards assembled, stored and distributed the devices.
Each device, which works like a tape player, is composed of loudspeaker,
amplifier circuit, player, timer and storage battery, which were purchased
and assembled by the die-hard elements of the cult, said police.
They usually deposit the devices near rehabilitation houses and government
department buildings, in parks, schools and other public places to broadcast
Li Hongzhi's instructions through remote control and timer.
Police investigations show that Gu Xiufang, a Falun Gong cult diehard in
Beijing who uses "Gu Hui" as alias when carrying out missions, started in
March to purchase the required components and connected with fellow Falun
Gong members to assemble and distribute the devices after she received
direction from Falun Gong's web site.
Gu told police that she got from the web site detailed direction about the
whole plan and how to make the devices.
The Chinese government has officially banned the Falun Gong cult, which has
led more than 1,000 followers to commit suicide or self-immolation. So far,
most Falun Gong followers in China have cut ties with the cult and returned
to their normal lives.
The Falun Gong overseas organization headed by Li Hongzhi is very worried
about losing followers on the mainland and the purpose of these devices is
to increase their voice, said Gu.

*****

U.S. 3rd-Qtr GDP Sees 1st Fall in More Than 8 Years.

The U.S. economy shrank for the first time since early 1993 in the third
quarter of this year due mainly to slower growth in personal consumption in
the wake of the Sept. 11 terrorist attacks, the Commerce Department said
Wednesday. 
Real U.S. gross domestic product (GDP) for July-September contracted at an
annualized rate of 0.4%, the department said in an advance report.
This represented the first GDP fall since the January-March quarter of 1993,
when the economy shrank 0.1%. The margin of decline is the biggest since the
first quarter of 1991, when GDP dropped 2.0%.
In the second quarter of this year, GDP -- total economic output within U.S.
borders -- grew a meager 0.3%. The third-quarter GDP figures will be revised
twice more. 
The latest GDP data have increased the possibility that the U.S. economy
will slip into recession -- defined as at least two consecutive quarters of
negative GDP readings -- for the first time since the recession observed
from the July-September period of 1990 through the January-March quarter of
1991. 
In response to the dismal GDP data, President George W. Bush urged Congress
on Wednesday to quickly approve an economic stimulus package.
''The Congress needs to pass a stimulus package and get it to my desk before
the end of November,'' he said in a speech to the National Association of
Manufacturers board of directors.
Treasury Secretary Paul O'Neill said the U.S. economy could show positive
growth in the fourth quarter if lawmakers pass the stimulus package soon.
''I think if we can get this stimulus bill in place quickly there's still a
plausible argument that the fourth quarter could be mildly positive,'' he
told reporters. 
The Commerce Department attributed the third-quarter GDP fall mainly to a
deceleration in personal consumption, a larger decrease in exports and the
continued sluggishness in corporate capital spending.
This underscored the fact that the terrorist attacks are adversely affecting
the already weak U.S. economy, making individuals reluctant to spend more on
goods and services.
The GDP report said personal consumption, which accounts for two-thirds of
U.S. GDP, rose only 1.2% in the July-September period after increasing 2.5%
in the second quarter.
The third-quarter increase marked the smallest rise since the first quarter
of 1993, when personal consumption rose 0.8%.
Corporate investment in plant and equipment, another key force behind
economic expansion, dropped 11.9%, following a 14.6% decline in the
April-June period. 
With the latest GDP figures, the Federal Reserve is expected to further
reduce a key short-term interest rate at its next policy-setting meeting
Tuesday to keep recession at bay.
The Fed has already cut its target for the federal funds overnight lending
rate nine times this year by a total of 4.0 percentage points.








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