Posts Tagged ‘Britain’

Pakistan  The United Nations appealed on Wednesday for $459 million in aid for flood-hit Pakistan, warning of a second wave of death among sick, hungry survivors unless help arrived quickly.Roiling floods triggered by unusually heavy monsoon rain have scoured Pakistan’s Indus river basin, killing more than 1,600 people, forcing 2 million from their homes and disrupting the lives of about 14 million people, or 8 percent of the population.President Asif Ali Zardari, whose government has come in for harsh criticism for its perceived sluggish response to the disaster, defended a decision to travel abroad as the floods began, saying he helped focus international attention on the plight of the victims.The floods, the worst in the region in 80 years, have raised fears for the prospects of the nuclear-armed U.S. ally already battling a deadly Islamist militancy.U.S. Defense Secretary Robert Gates said on Wednesday the U.S. military was tripling the number of helicopters in Pakistan to 19 from six and sending in a landing platform to be used off the coast of Karachi, Pakistan’s biggest city.

Washington, which had already committed $55 million to Pakistani flood relief efforts, also announced it was contributing a further $16.2 million to the U.N. refugee agency and International Red Cross for emergency assistance to flood victims.Aid agencies have complained of a lackluster donor response to the crisis, while a U.N. spokesman said help was needed soon.”If we do not respond soon enough to the urgent needs of the population, if we do not provide life-saving assistance as soon as is necessary, there may be a second wave of death caused by diseases and food shortages,” said U.N. humanitarian operations the spokesman Maurizio Giuliano.Hundreds of roads and bridges have been destroyed from northern mountains to the plains of the southern province of Sindh, where the waters have not yet crested, meaning the situation could get worse.

Countless villages and farms have been inundated, crops destroyed and livestock lost. In some places, families are huddled on tiny patches of water-logged land with their animals surrounded by an inland sea.On the outskirts of the city of Sukkur, in Sindh, hundreds of people waited for food supplies at a tent camp.”I can’t find my 12-year-old son. I’ve been to my village with soldiers on a boat but there was no sign of him,” said farmer Mohammad Hassan.”I’m so worried. I don’t know what to do. Should I take care of my family here or go and look for my son?” Hassan, a father of 10, told Reuters before rushing into a throng jostling around a truck that arrived with rations of cooked rice.

ECONOMIC DAMAGE

The International Monetary Fund has warned of major economic harm and the Finance Ministry said the country would miss this year’s 4.5 percent gross domestic product growth target, although it was not clear by how much.Pakistani stocks ended 0.17 percent down at 9,875.68 as the economic costs of the disaster rattled investors. the market has lost 5.37 percent since the floods began.The United Nations says the disaster is the biggest the country has faced and it would cost billions of dollars to rehabilitate the victims and rebuild ruined infrastructure.Giuliano said he was optimistic aid would arrive and $150 million had already been pledged. The U.N. World Food Program needs $150 million to feed 6 million people for three months.Zardari defended his decision to travel to France and Britain at the end of last month.

“Some have criticized my decision, saying it represented aloofness, but I felt that I had to choose substance over symbolism,” he said in an opinion piece for The Wall Street Journal.The British government had pledged $24 million in aid, following his meeting with Prime Minister David Cameron, the Pakistani leader said.

Pakistan’s military, which has ruled the country for more than half of its 63-year history, has taken the lead in relief efforts, reinforcing the faith many Pakistanis have in their armed forces and highlighting the comparative ineffectiveness of civilian governments.Analysts say the armed forces would not try to take power as they have vowed to shun politics and are busy fighting militants.U.S. military helicopters have been airlifting survivors in an effort that may win Washington some supporters in Pakistan, where anti-American sentiment runs high.

“Let’s not talk about politics. We were trapped here and they came to evacuate us,” said Abdul Rehman, 37, rescued by a U.S. helicopter after being stranded with a new-born baby and wife.”They’re doing good. Let’s appreciate them.”The United States needs a stable Pakistan to help it end a nine-year war by the Taliban in Afghanistan.(Reuters)

MOSCOW, May 9 Soldiers from four NATO countries marched for the first time in Russia’s annual Victory Day parade marking the victory in World War II, observers said.Troops from Britain, France, Poland and the United States marched alongside 10,000 Russian forces while about two dozen world leaders attended the 65th anniversary, the BBC reported Sunday. The parade also featured tanks, ballistic missiles and a fly-over of 127 aircraft.Russian President Dmitry Medvedev told spectators lessons from World War II “urge us to show solidarity.””Peace is still fragile and it is our duty to remember that wars do not start in an instant,” Medvedev said. “It is only together that we shall be able to counter modern threats.”

Victory Day parades involving more than 102,000 service personnel and more than 200,000 veterans were conducted in 36 Russian cities, Russian news agency RIA Novosti reported.Medvedev said the march on the Red Square “symbolizes our readiness to defend peace, to prevent the revision of the results of the war, to prevent new tragedies.”(UPI)

The Group of Seven rich countries is concerned about Greece’s debt problems, a Canadian official said on Friday, and hinted that there may be other countries that will also need help.Canada is this year’s chair of the G7.Canadian Finance Minister Jim Flaherty would not discuss the substance of talks between G7 finance ministers and central bank governors early on Friday, but said his G7 partners were watching developments closely.

“We are concerned. We’re consulting closely with our international partners.”In addition to Canada, the G7 includes Britain, France, Germany, Italy, Japan and the United States.Echoing comments from other G7 officials, Flaherty told reporters that the G7 believed countries that are borrowing heavily need to rein in fiscal deficits. But he questioned if they could do that on their own.

“It’s necessary that, first of all, that the countries involved take the steps they need to take and be clear about that, that they’re going to take these steps toward fiscal restraint, fiscal responsibility,” he said.”They will need some help, in all likelihood, in order to manage the issue, as Greece did.”

Leaders of euro zone countries on Friday approved a deal by the European Union and International Monetary fund to provide an aid package to Greece, EU sources said. The aid package of 110 billion euros ($147 billion) is to be released to Greece over three years.The IMF board is to meet on Sunday to discuss its share of the rescue deal.Greece has promised to slash spending in return, measures which have provoked violent protests in Athens.

U.S. President Barack Obama, in remarks at the White House to highlight stronger-than-forecast U.S. April job growth, said he had discussed developments in the Greek debt situation with German Chancellor Angela Merkel by telephone.”We agreed on the importance of a strong policy response by the affected countries and a strong financial response from the international community,” Obama said.

“I made clear that the United States supports these efforts and will continue to cooperate with European authorities and the IMF during this critical period.”

GEITHNER TALKS WITH G7, U.S. REGULATORS

U.S. Treasury Secretary Timothy Geithner also participated in the G7 call, but a Treasury spokesman had no immediate comment on the outcome.A U.S. Treasury official earlier had described the call as being “focused on European leaders updating the G7 finance ministers and central bank governors” on Greece’s debt woes.Geithner also held conference calls on Friday morning with the heads of two U.S. market regulators, the Securities and Exchange Commission and the Commodity Futures Trading Commission, and with Federal Reserve officials.

The SEC and CFTC are investigating Thursday’s sudden stock market plunge, which some market sources say may have been caused by an errant trade by a large bank. An Obama administration official said the Treasury Department was closely monitoring the probe.The G7 comprises Britain, Canada, France, Germany, Italy, Japan and the United States. It has lost significance as the world puts more stress on the broader Group of 20 industrialized and emerging economies, but retains a role in issues like the European debt crisis.(Reuters)

Stock prices fluctuated sharply, as they often do the day after a big slide. The Dow Jones industrial average was down about 100 points in early afternoon trading, having been down as much as nearly 280 points earlier. Traders remained anxious amid questions about what caused Thursday’s sudden drop, which sent the stocks of several companies briefly to almost zero.The market looked past a surprisingly strong report on the U.S. jobs market and focused instead on Europe’s spreading debt crisis and Thursday’s plunge. The Dow was down nearly 1,000 points Thursday afternoon — its largest one-day drop — before recovering two-thirds of its losses.

In early afternoon trading the Dow fell 96.28, or 0.9 percent, to 10,424.04. It had been down as much as 279 in earlier trading, and at a few points recouped all its losses for the day before slipping again in the early afternoon.The Standard & Poor’s 500 index fell 11.56, or 1 percent, to 1,116.59, while the Nasdaq composite fell 32.70, or 1.4 percent, to 2,286.94.Falling stocks outpaced gainers two-to-one on the New York Stock Exchange, where volume was a heavy 1.1 billion shares.

Technology stocks were particularly hard hit following reports that Nokia Corp. was broadening its legal fight against rival cell phone maker Apple Inc. to include the iPad, Apple’s new hit product. Apple shares fell 2.6 percent in heavy trading.Meanwhile Europe’s debt problems again weighed on stocks. Germany’s parliament approved Berlin’s share of the rescue package after a boisterous debate. However, investors still fear that Greece may not make a May 19 deadline to make a debt repayment.

Investors’ concern goes far beyond Greece, the smallest economy in the European Union. A further loss of confidence in European government debt could have an impact on other weak countries like Portugal, potentially requiring another difficult bailout process. The debt crisis has already badly undermined Europe’s shared currency, the euro.

“You’re not concerned about the kid with the cold, but how he spreads it to the rest of the class,” said Len Blum, a managing partner at investment bank Westwood Capital. Blum noted that Greece’s debt problem could be similar to the subprime mortgage meltdown in the U.S., which quickly spread to other parts of the financial system.Friday’s trading left the Dow down about 4 percent for the week and barely in the black for the year. The S&P was also down about 5 percent, while the Nasdaq was off 6 percent. The S&P and Nasdaq were also both still positive for 2010.The week’s losses would put the market about halfway through what experts call a “correction,” usually defined as a drop of between 10 percent and 20 percent following a sustained rise.

Stocks have been on a nearly uninterrupted upward path since March of last year, when indexes hit 12-year lows. Analysts have been predicting a correction for months, only to see the market bounce back after brief periods of decline.Long-term market watchers actually welcome occasional pullbacks in the market, saying that gives investors opportunities to pick up shares at bargain prices.”A corrective phase is in play,” said Rob Lutts, president and chief investment officer at Cabot Money Management.

If he’s right, this correction would be far faster than the historical average. “We used to take weeks and months to do what we now do in days,” Lutts said.In economic news, the Labor Department reported that employers added 290,000 jobs last month, far more than expected and the biggest jump in four years. However the jobless rate rose to 9.9 percent from 9.7 percent as more people looked for work.

The big improvement in the jobs report brought some clarity to the biggest question remaining for the U.S. economy: When employers would start hiring again. Despite positive signs in manufacturing and housing, job creation has been lagging far behind other sectors of the economy, a worrisome point for economists. Friday’s report may help change that perception.”It’s a good-size number and it had a lot of breadth,” said John Silvia, chief economist at Wells Fargo. “There isn’t a double-dip out there. The employment situation suggests that we have a sustained economic recovery in the U.S. Companies are hiring people.”

Apple fell $6.37, or 2.6 percent, to $239.88.Oil fell, and gold rose. The dollar was mostly lower against most currencies. The euro clawed back some ground against the dollar after several days of declines.European markets were broadly lower.The declines were deepest in France, where the CAC-40 index tumbled 4.6 percent. Germany’s DAX fell 3.3 percent and Britain’s FTSE 100 fell 2.6 percent. Japan’s Nikkei fell 3.1 percent.

BUENOS AIRES, Argentina Argentina and Uruguay both professed neighborly affection, if not brotherly love, after a U.N. court delivered a long-awaited ruling that rejects Argentina’s claim that an Uruguayan pulp mill pollutes their shared river.Both sides said Tuesday’s decision by the International Court of Justice in the Netherlands gave them what they need to resolve their differences, with Argentina taking heart from a part of the ruling that said Uruguay did not properly inform it about the project.The countries vowed to work through a binational commission to protect the Rio Uruguay.

A key hurdle remains, however, with no indication of how Argentine President Cristina Fernandez will overcome it: Argentine activists are still blocking the main bridge across the river and are refusing to give up their fight.The verdict cannot be appealed, but the activists said they won’t accept it – raising the possibility of a violent confrontation if Argentine police have to intervene.

For more than three years, the activists have blocked traffic between Guayleguachu, Argentina, and Fray Bentos, Uruguay, where the $1.2 billion Botnia paper mill is located. At times they had the open support of Fernandez’s predecessor and husband, Nestor Kirchner, who took the fight to the U.N. court demanding the factory be torn down.The court said it found no conclusive evidence that the mill is pumping dangerous pollution into the river.

In a portion of the ruling welcomed by Argentina, the court said both South American countries “have a legal obligation” to work closely together in honoring their treaty requiring shared decision-making for river projects.While saying Uruguay should have involved the river commission to inform Argentina of plans to build two pulp mills before authorizing construction, as called for in their 1975 treaty regulating the river’s use, the court rejected Argentina’s demands for more than a reprimand of Uruguay.

“Ordering the dismantling of the mill would not, in the view of the court, constitute an appropriate remedy,” the court’s vice president, Peter Tomka, said.Uruguayan President Jose Mujica made no immediate comment, in keeping with his effort to reduce passions and resolve the dispute. But his foreign minister, Luis Almagro, called the verdict a reaffirmation of international law.

“In environmental politics, Uruguay follows the most strict international standards,” Almagro said.Fernandez took a conciliatory stance, saying, “Surely both of our countries are going to pursue from now on a strong monitoring effort, a strong control.”

“We have with Uruguay a common history, we have more than 300,000 Uruguayans living in Argentina, we have a deep feeling for Uruguay and I in particular have a very special affection for its president, Pepe, for Lucia his wife and surely this will enable us to build mechanisms of control,” the Argentine president added.The paper mill is far downstream along the Rio Uruguay, which runs for 1,100 miles (1,800 kilometers) from Brazil to the Rio de la Plata, and drains about 210,000 square miles (339,000 square kilometers) of farmland, an area larger than California and more than twice the size of Britain.

The farm runoff includes vast amounts of fertilizer, including nitrogen, phosphate, potassium and magnesium. It combines with heavy metals from factories – mostly on the Argentine side – and untreated sewage from most of the nearly 100 Argentine and Uruguayan municipalities near the river. Together, these effluents feed algae blooms, robbing the water of oxygen and contributing to skin diseases for people who come into contact with the water.

While the bridge blockade has damaged local economies and frustrated people who have to drive hundreds of miles (kilometers) out of their way to cross the river, the dispute has raised environmental consciousness and prompted governments in both nations to take action. Guayleguachu opened its sewage treatment plant in 2005, which sharply reduced coliform bacteria in the Rio Guayleguachu, which feeds the Rio Uruguay.

In part to compensate for any pollution from its mills, Uruguay plans similar treatment plants for its main river cities of Salto and Paysandu, while the sewage from Fray Bentos will soon be processed by the Botnia mill’s own treatment facility, said Uruguay’s lead counsel before the U.N. court, Paul Reichler.

The dispute also led to intensive monitoring of the river, both upstream and downstream from Botnia, starting two years before the plant opened. But neither country systematically tracks pollutants in the river to their sources, drawing criticism from environmental activists.”This is a conflict that involves a lot of hypocrisy,” said Juan Carlos Villalonga, campaign director for Greenpeace-Argentina. He said both countries need to strengthen land use rules in the watershed, where fast-growing eucalyptus trees promise a booming industry.(AP)

volcanic eruption in Iceland on Thursday spread out across Europe and resulted in travel chaos on a scale not seen since the September 11, 2001, terror attacks in the US.Thousands of passengers were stranded at Mumbai’s Sahar international airport with their eyes glued totelevision screens for updates. Many were clueless about the reason behind the cancellations and were seen inquiring at other airline counters for flight options. Some passengers were provided accommodation by airlines, others asked to fend for themselves.

A hassled Ruud De Boer, 56, was furious. “I was told that my flight was cancelled after waiting for more than two hours on Thursday. The airlines did not bother to explain the reasons for the cancellation or tell us about the volcanic eruption,” lamented Ruud.

Ruud, managing director of a private firm in Netherlands, was then scheduled to fly by Delta Air Lines flight DL-239 Mumbai-Amsterdam at 8pm on Friday. But he was seen struggling to hire a prepaid taxi outside the terminal late in the evening.

“I got to know that the flight was cancelled when I reached the airport at 5pm. I don’t like the manner in which the airline has handled the issue. They gave us hotel accommodation till Friday and said we would have to stay back at our own expense,” said Ruud. He has now booked tickets for a Swiss Air flight, which plans to take a different route.

Air India passengers Bruce Gery, 25, and Rosie Hanley, 25, however, are glad that the airline provided accommodation. The two were on a two-week holiday in India and were set to return to the UK on Friday. “We left Goa at 5am by train to catch our afternoon flight to London from Mumbai.” said Rosie.

Though the AI0131 flight was cancelled, Bruce said, “We were lucky that the airline gave us hotel accommodation. We want nothing more.”There were chaotic scenes at international airports too. Airports in much of Britain, France and Germany remained closed and flights were set to be grounded in Hungary and parts of Romania as well. Airlines and travel operators were losing hundreds of millions of dollars over the grounded flights due to the ash from the eruption of volcano Eyjafjoll in Iceland. The volcanic ash poses a threat to safety because it can get sucked into jet engines and cause them to cut out. The World Health Organisation in Geneva said that the ash could also have potential health impacts if it settles.

17,000 flights were expected to be canceled on Friday due to the dangers posed for a second day by volcanic ash from Iceland

Posted: April 16, 2010 in breaking news
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A huge ash cloud from an Icelandic volcano spread out across Europe on Friday causing air travel chaos on a scale not seen since the September 11 attacks.About 17,000 flights were expected to be canceled on Friday due to the dangers posed for a second day by volcanic ash from Iceland, aviation officials said. Airports in Britain, France, Germany, and across Europe were closed until at least Saturday.”I would think Europe was probably experiencing its greatest disruption to air travel since 9/11,” said a spokesman for the Civil Aviation Authority, Britain’s aviation regulator.”In terms of closure of airspace, this is worse than after 9/11. The disruption is probably larger than anything we’ve probably seen.”

Following the September 11, 2001 attacks on Washington and New York, U.S. airspace was closed for three days and European airlines were forced to halt all transatlantic services.

Vulcanologists say the ash could cause problems to air traffic for up to 6 months if the eruption continues, but even if it is short-lived the financial impact on airlines could be significant.The fallout hit airlines’ shares on Friday with Lufthansa, British Airways, Air Berlin, Air France-KLM, Iberia and Ryanair down between 0.8 and 2.2 percent.The International Air Transport Association said only days ago that airlines were just coming out of recession.

“LIMITED COMMERCIAL SIGNIFICANCE”

The flight cancellations would cost carriers such as British Airways and Lufthansa about 10 million pounds ($16.04 million) a day, transport analyst Douglas McNeill said.

“To lose that sum of money isn’t a very pleasant experience but it’s of limited commercial significance as well,” he told BBC TV. “A couple of days like this won’t matter too much. If it goes on for weeks, that’s a different story.”The volcano began erupting on Wednesday for the second time in a month from below the Eyjafjallajokull glacier, hurling a plume of ash 6 to 11 km (4 to 7 miles) into the atmosphere.Officials said it was still spewing magma and although the eruption could abate in the coming days, ash would continue drifting into the skies of Europe.

Volcanic ash contains tiny particles of glass and pulverized rock that can damage engines and airframes.

In 1982 a British Airways jumbo jet lost power in all its engines when it flew into an ash cloud over Indonesia, gliding toward the ground before it was able to restart its engines.The incident prompted the aviation industry to rethink the way it prepared for ash clouds.

Of the 28,000 flights that usually travel through European airspace on an average day, European aviation control agency Eurocontrol said it expected only 11,000 to operate on Friday while only about a third of transatlantic flights were arriving.The British Meteorological Office showed the cloud drifting south and west over Europe. Eurocontrol warned problems would continue for at least another 24 hours and an aviation expert at the World Meteorological Organization said it was impossible to say when flights would resume.”We can only predict the time that flights will resume after the eruption has stopped, but for as long as the eruption is still going on and still leading to a significant eruption, we cannot say,” said Scylla Sillayo, a senior official in the WMO’s aeronautical meteorology unit.

AIRSPACE CLOSED

Britain’s air traffic control body said all English airspace would be closed until 8 p.m. EDT on Friday although certain flights from Northern Ireland and Scottish airports were being allowed to take off until 1800 GMT.”When the experts give us the all-clear we’ll get the operation back up and running,” Paul Haskins, head of safety at National Air Traffic Service, told BBC radio.

There were no flights from London’s Heathrow, Europe’s busiest airport, which handles some 180,000 passengers a day, while officials at Germany’s Frankfurt airport, Europe’s second busiest, said flights would be suspended from 2 a.m. EDT.Around 2,000 people slept overnight at Amsterdam’s Schiphol Airport, a spokeswoman said, adding they did not expect airspace in the Netherlands to reopen soon.

Eurocontrol said airspace was closed over Belgium, Denmark, Sweden, Norway, Finland, Estonia, the north of the Czech Republic, northern France including all Paris airports, and at airports in northern Germany, Austria and parts of Poland.

Polish officials said if the disruption continued, it might force a delay in Sunday’s funeral for President Lech Kaczynski and his wife who were killed in a plane crash last Saturday.Airlines across Asia and the Middle East have also canceled or delayed flights to most European destinations.

However, as the ash plume drifted south over Europe, Irish officials said most of the airspace over Ireland had reopened.The air problems have proved a boon for rail companies. All 58 Eurostar trains between Britain and Europe were operating full, carrying some 46,500 passengers, and a spokeswoman said they would consider adding services if problems persisted.(Reuters)

airstrikePakistan acknowledged yesterday that at least 45 civilians were killed in an airstrike in the Khyber tribal region, an admission that could undermine the military’s anti-Taleban campaign in the country’s northwest region. Hundreds of tribesmen demonstrated against the attack in Sera Vela village, which was hit by air force jets at the weekend, causing the worst civilian casualties in a single incident in Pakistan’s war against Islamic militants. Tribal elders said that up to 71 people were killed in the strike, denying there any militants in the area.

A senior military official told The Times that civilians were among dozens of people killed in airstrikes aimed at insurgent hideouts along the Afghan border. He said that the attack also killed 30 militants.

The military rarely admits civilian deaths, which, according to some reports, have mounted in recent months as Pakistan intensifies its offensive against al-Qaeda backed militants in the lawless tribal region. The military had earlier denied that there were any civilian casualties in the weekend attack.

The military official insisted the military had received credible intelligence that militants had been hiding in the area. Security officials said that a large numbers of Taleban fleeing the military operation in South Waziristan had moved to the Khyber tribal region.

Tribal elders and residents disputed the military’s account, saying that there was no militant sanctuary in the area. Many of those killed in the attack belonged to the Kookikhel tribe which has a history of co-operating with the military in the anti-Taleban campaign. Most families in the village have sons in the security forces and many retired army and paramilitary soldiers were among the dead and injured.

Kashmalo Khan, 63, a retired paramilitary soldier whose right leg was fractured, said that he lost 11 family members in the attack. “The bombing continued as people were busy in relief work,” said Mr Khan, who was being treated in a Peshawar hospital. “There is not a single Taleban in our area. The military was given wrong information.”

Another resident said the house that was initially bombed belonged to Hamid Khan, whose two sons were serving in the Frontier Corps. “They had nothing to do with the Taleban,” said Hazar Gul, a resident of Sera Vela.

Sera Vella is a small border village in Khyber, one of the seven semi autonomous tribal regions where the Pakistani army has been conducting operations against Islamic militants. Analysts said that such a large number of civilian deaths could undermine the military’s efforts to mobilise public support for its anti-Taleban campaign. The incident has provided a strong propaganda tool for militants.

“The attack has killed the people most directly affected by the Taleban savagery. It may now turn these people against the military,“ said Rifaat Hussain, professor of Security Studies at Quai-e-Azam University in Islamabad. “The family members of the victims could become easy recruits for the militants.”

Tension ran high in the area, where hundreds of tribesmen joined an anti-Government rally demanding an apology from the military. They also demanded compensation for the family of the victims.

Thousands of Pakistan troops have been involved in the biggest ever offensive against militants in the tribal regions which had become a haven for the Taleban and al-Qaeda.

Pakistan’s military effort to clear the borderland of insurgents who have also been involved in the attacks on Nato troops across the border in Afghanistan has earned praise from Britain and the US administration. The offensive is seen as being critical to the success of the new US Afghan war strategy.

The army, backed by the air force, has recently expanded its operation to Orakzai and Khyber tribal regions after driving out insurgents from South Waziristan, which was also the headquarters of Tehrik-e-Taliban Pakistan, the militant group responsible for most of the recent terrorist attacks inside the country.

About 200,000 have fled the Orakzai and Khyber regions, swelling the total number of displaced people. According to the United Nations 1.3 million people fleeing from the conflict zone have taken refuge in neighboring towns in the North West Frontier Province.

Tens of thousands of protesters converged on Bangkok’s shopping district on Saturday, forcing major retailers to close while accusing authorities of neglecting the poor on the 21st day of a mass rally seeking snap elections.Prime Minister Abhisit Vejjajiva’s embattled government deployed 50,000 soldiers, police and other security personnel in the city after caravans of the anti-government, red-shirted protesters travelled from rural areas to the Thai capital.At least half a dozen shopping malls including Central World — the second-largest shopping complex in Southeast Asia — shut their doors in response to protests and threats by the “red shirts” to stay overnight in the usually bustling area popular with tourists and Bangkok’s upper and middle classes.”We cannot let Mr. Abhisit rule the country any longer,” Jatuporn Prompan, a “red shirt” leader, told the crowd.

“It is time for the under-privileged to liberate themselves from the oppression made by the elite-backed government. It is time for the elite-supported government to dissolve parliament.

Thousands also rallied outside state-controlled broadcasters Radio Thailand and Channel 11, accusing them of bias.

Backed by Thailand’s powerful military and royalist establishment, Abhisit has said a peaceful poll now would be difficult given the tensions and has offered to dissolve parliament in December, a year early.The mostly rural and urban poor protesters are demanding immediate elections and threatening more protests in coming days, extending a mass street rally that began on March 14 when up to 150,000 “red shirts” converged on Bangkok’s old quarter.

Analysts say British-born Abhisit would likely lose an election if it were held now, raising investment risks in Southeast Asia’s second-biggest economy following a $1.6 billion surge of foreign investment in Thai stocks over the past month on expectations Abhisit will survive the showdown.Adding to the tension, more than 1,000 people who oppose the protesters held their own rally on Friday, donning pink shirts and saying the “red shirts” were unreasonable.

‘SEA CHANGE IN THAI POLITICS’

The “red shirts,” supporters of twice-elected and now fugitive former premier Thaksin Shinawatra, say Abhisit has no popular mandate and came to power illegitimately, heading a coalition the military cobbled together after courts dissolved a pro-Thaksin party that led the previous government.

Abhisit counters that he was voted into office by the same parliament that picked his two Thaksin-allied predecessors.Thaksin was widely seen as authoritarian and corrupt before his ouster in a 2006 coup, but remains a powerful symbol as the first Thai civilian leader to reach out to the poor in his 2001 election campaign with populist policies such as cheap loans.

The “red shirts” chafe at what they say is the unelected elite preventing Thaksin’s allies from returning to power.The 60-year-old former telecommunications tycoon is believed to be a big source of funds for the protests and has harnessed new technology from social networking site Twitter to web-cams — to rally supporters from self-imposed exile, mostly in Dubai.Convicted of corruption in 2008 and sentenced in absentia to prison, his status as fugitive restricts his travel. Some countries, including Britain and Germany, have banned him.

Analysts say regardless of the outcome, the mass rallies mark a turning point in a country where the richest 20 percent of the population earn about 55 percent of the income while the poorest fifth get 4 percent, according to November World Bank study.That income disparity is among Asia’s widest, it showed.”The fact that this many people were mobilized for so long shows the sea change in Thai politics,” said Chris Baker, a political analyst who has written several books on Thai politics.The “red shirts” have tapped an under-current of frustration, added prominent Thai political historian Charnvit Kasertsiri.

“What the leaders say strikes a chord, whether it be double-standard of treatment, problems with the justice system, or lack of access and opportunities for a better life,” he said.Analysts say both sides want to be in power in October for an annual military reshuffle and the passing of the national budget.The budget gives the government room to roll out welfare policies to court rural voters whose discontent is at the heart of the protests and who now back the Thaksin-allied opposition Puea Thai Party. It also gives whoever is in power a chance to allocate money to the powerful military and ministries.The military reshuffle allows the government to promote allies in an institution that yields tremendous influence in a country that has seen 24 coups and attempted coups since 1932.(Reuters)

RIHANNARIHANNA wants to get married!Insiders say the Rude Boy hitmaker is keen to make her romance with beau Matt Kemp official.“Rihanna is head over heels in love with Matt,” a source said.

“She has told friends she’d love to marry him. She’d be so happy if he got down on one knee and popped the question.”Matt, the source adds, “was just what Ri needed to help her get over Chris Brown.”It was recently claimed that the superstar singer 22, has been forced to beef up her personal security after a male fan allegedly sent her saucy letters.

“Matt has asked Rihanna’s team to be extra cautious since she was sent two very steamy letters,” a source told Britain’s Daily Star newspaper.“Her friends are also concerned about the situation. They spent ages talking about it when they dined at the Spanish Kitchen in West Hollywood last week.“They are really worried things with this guy are going to get out of hand.”