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To: Alex who wrote (19896)	9/27/1998 1:55:00 PM
From: goldsnow	Read Replies (1) \| Respond to of 116761

German Chancellor Kohl Beaten in Election 01:29 p.m Sep 27, 1998 Eastern By Robert Mahoney BONN (Reuters) - Social Democrat Gerhard Schroeder beat Helmut Kohl in a landmark election Sunday to bring a left-led government back to power in Germany after 16 years. Kohl, the West's longest-serving leader crashed out with the worst result for his conservative Christian Democrats (CDU) since 1949. Addressing supporters, Schroeder promised to pursue foreign policy continuity and battle mass unemployment as Germany's new chancellor. ''After 16 years, the Kohl era is at an end,'' Schroeder told cheering supporters at SPD party headquarters. ''The SPD has won,'' Kohl told disappointed followers at his Christian Democratic Union (CDU) headquarters in Bonn. ''The voters have clearly opted for red-green,'' he said, referring to the coalition of SPD and ecologists that could take over now. Kohl took full responsibility for the much-criticised CDU campaign, which got off to a slow start and and began to close the gap with Schroeder only late in the day. ''It's clear it didn't succeed. I thank all of those who have helped me over the last 16 years, also abroad. Many helped pave our way because they were our partners and friends. ''It was a great time. We achieved a lot. But, as democrats, we accept the decision of the voters,'' he said. Television exit polls forecast Schroeder's Social Democratic Party (SPD) won between 40.9 and 41.2 percent of the vote compared with between 35.2 and 35.7 percent for Kohl. Opinion polls had predicted an SPD victory since Schroeder won the party nomination in March. But it was not clear whether Schroeder would win enough seats in the Bundestag lower house of parliament to rule in coalition with the leftwing, ecologist Greens party. If he fails he could form a grand coalition with the CDU, although Kohl has already ruled out serving in such a government. The grand coalition, often dubbed an ''elephants' wedding'' could be led by Schroeder with an important post for Kohl's deputy Wolfgang Schaeuble. The exit polls gave the Greens between 6.2 and 6.5 percent while the liberal Free Democrats (FDP), Kohl's junior coalition partner, won between 6.4 and 6.6 percent. A big surprise was the performance of the reform communist Party of Democratic Socialism (PDS), heirs to the rulers of communist east Germany. They took five percent of the vote nationally for the first time. If confirmed, their presence would make it difficult for Schroeder to join with the Greens. ZDF television said it projected an SPD-Green alliance would have a two-seat majority in the 656-member lower house if the PDS remained in parliament, but over 20 seats if it didn't. ''It's a great result. The SPD is the strongest party and Schroeder is the new chancellor,'' said Franz Muenterfering, the man who managed Schroeder's Americanized campaign. ''The SPD will be able to decide the policies. We have good reason to celebrate tonight and we will get to work tomorrow.'' ''Schroeder is the candidate that fits the era. He is the candidate who is looking to the future. It was a big mistake that Kohl ran again,'' Muenterfering said. Schroeder, 54, capitalized on record postwar unemployment to unseat Kohl, who earned a chapter in the history books as the architect of Germany's 1990 reunification. Schroeder, a war widow's son from Lower Saxony ran a slick, personalized, presenting himself as a fresh face with fresh ideas to counter Kohl, whom he called yesterday's man. Schroeder, a pragmatic north German who is expected to strengthen ties with the English-speaking world, courted big business while calling for more social justice. The message went down well with youngsters who had known no other leader except the 68-year-old Kohl. ''We were not able to push through our reform policies, which demanded some sacrifices from people,'' said CDU secretary general Peter Hintze, referring to the Kohl's stalled tax reforms. ''The other side said it could be done without efforts. We don't need any savings. The people responded to this offer. Now the other side has to show how they will fulfill these promises,'' Hintze told reporters. Schroeder has said he wanted to form a government with the Greens. But the presence of the PDS makes a grand coalition of SPD and CDU a likely option. Germany last had such a government from 1966 to 1969. Schroeder started campaigning in the spring with a lead of 12 percentage points. He blamed Kohl for unemployment and political stagnation, but Kohl bounced back as the economy picked up and joblessness declined. Germany's election laws added to the unpredictability of the race because small shifts in local voting patterns can have a decisive influence on the final result in Bonn. No post-war chancellor had been voted out of office. Earlier power changes came through shifts in coalitions. There are 656 seats in parliament, half elected by direct votes for deputies from the 328 constituencies and half picked from party slates in the 16 federal states that voters chose with the second ballot they cast Sunday. Copyright 1998 Reuters Limited

To: Alex who wrote (19896)	9/27/1998 5:18:00 PM
From: goldsnow	Read Replies (1) \| Respond to of 116761

The train is set on a collusion course....Unfurtunately plenty of people, oil, food on board... We however, prefer to watch Titanic melodrama.. Arafat Renews Call For Palestinian State 02:45 p.m Sep 27, 1998 Eastern By Bernie Woodall NEW YORK (Reuters) - Palestinian President Yasser Arafat Sunday renewed his determination to achieve an independent state by May next year and rejected any linkage between the fight against terrorism and other aspects of a Middle East peace accord. ''I would like to reiterate our policy of zero tolerance to terror and violence whether committed by Palestinians or Israelis against Israelis or Palestinians, without any linkage to other aspects of the peace process,'' Arafat told a conference organized by the Center for Middle East Peace and Economic Cooperation. Arafat is in New York for the U.N. General Assembly, as is Israeli Prime Minister Benjamin Netanyahu, and U.S. leaders are trying to use the opportunity to break the deadlock between them. Arafat addresses the General Assembly Monday amid speculation he will solicit support for declaring statehood if accords with Israel are not completed by May, the official deadline for a final deal. ''The Palestinian state will be a state of peace,'' Arafat said Sunday. ''I want and hope that the declaration of an independent Palestinian state on Palestinian soil will be carried out within the framework of international celebration,'' he said, according to an English translation of his speech in Arabic. Under the 1993 Oslo interim peace accords, final agreements between the Palestinians and Israel are supposed to be completed by May 4. ''The international community and all peace-loving people must exert a responsible effort to ensure the implementation of an agreement signed before May 4, 1999,'' Arafat said. The day ''just can't come and go like any other day.'' ''On that day, we hope that our basic choice of reaching an agreement is realized. We hope that our basic choice of concluding the peace process with Israel is realized.'' Israeli Prime Minister Benjamin Netanyahu, who spoke last week at the United Nations, has said unilateral declaration of a Palestinian state would collapse peace moves and prompt Israel to take what he calls a similar unilateral act. Secretary of State Madeleine Albright met the two leaders separately Saturday night and was scheduled to meet them again Sunday, U.S. officials said. The United States has proposed an Israeli troop withdrawal from a further 13 percent of the West Bank in exchange for tougher Palestinian action against Islamic militants. Arafat and Netanyahu are to meet President Clinton in Washington separately this week but officials say a three-way meeting could be arranged if events warranted. ''We seek a comprehensive peace on all fronts so we can achieve our desired goals of peace, prosperity and security for all the people of the region and independence and freedom for the Palestinian people,'' Arafat said. In response to the speech, Israel's U.N. ambassador Dore Gold said Arafat had failed to use the opportunity ''to reach out and create a better tone of mutual reconciliation''. Albright's spokesman James Rubin said any unilateral declaration by Arafat ''would be a mistake.'' Rubin said the United States opposes unilateral actions by Israel on issues -- like settlement building -- that by agreement are set aside for resolution in final status negotiations. Copyright 1998 Reuters Limited.

To: Alex who wrote (19896)	9/28/1998 7:58:00 PM
From: goldsnow	Read Replies (1) \| Respond to of 116761

Japan banks in shock over $27bn failure By Tony Boyd, Tokyo A political deal for reviving the Japanese financial system has triggered the country's largest ever bankruptcy, with the collapse of Japan Leasing Corp, a non-bank lender with total debts of ¥2.18 trillion ($27 billion). The collapse sent shockwaves through the Japanese financial system, driving down the share prices of its major backers. The shares of its parent, the stricken Long-Term Credit Bank (LTCB), fell by a massive 40 per cent. LTCB was forced to abandon Japan Leasing as part of a bank stabilisation deal finalised in the early hours of yesterday morning between the ruling Liberal Democratic Party and opposition parties controlling Japan's Upper House. The opposition forced the LDP to drop a plan for injecting tax money into LTCB, which would have allowed it to rescue Japan Leasing and two other non-bank affiliates by forgiving loans of ¥250 billion. Under the terms of the deal, LTCB will be temporarily nationalised, but it is still not known how much government funding will be put aside to rescue banks; who will decide which banks are viable; and how viable banks will obtain fresh capital. Economists said the fall of Japan Leasing was a sign of the growing deflationary forces in the Japanese economy that were likely to strengthen in the final months of this year. "I think what we are seeing right now is the wrenching impact of deflation on corporate sales and the knock-on effect to financial companies," said Mr Andrew Shipley, chief economist at Schroders Japan. "This is the first of many financiers and big corporates to go bust in the fourth quarter as the economy continues to implode." The sharemarket impact of the Japan Leasing collapse was neutralised by what traders said was a blatant "price-keeping operation" by the Government, which helped push up the benchmark Nikkei 225 index by 185.5 to close at 13,909.4. The bank stabilisation deal also came as Asahi Bank and Tokai Bank, two of Japan's top 19 banks, announced a strategic alliance which eventually may create Japan's second-largest bank under a new holding company. However, the combined problem loans of the two banks are ¥2.1 trillion and officials from both admitted they must overcome the bad loan problem before the merger could proceed. Meanwhile, LTCB was yesterday clinging to the hope that it could proceed with a planned merger with Sumitomo Trust & Banking. Japan's Finance Minister, Mr Kiichi Miyazawa, said the Japan Leasing collapse was not surprising but the adverse impact from its demise would be outweighed by the "psychological effect" of a bank stabilisation agreement. The Prime Minister, Mr Keizo Obuchi, urged the Japanese people to remain calm. "The Government will ensure all measures to stabilise the financial market," he said. The catalyst for the Japan Leasing collapse was a move last week by creditors of the company, including Yasuda Trust & Banking, to seek collateral to protect their loans. A credit analyst at a major bank in Tokyo said that if this sort of activity became widespread, it could trigger a collapse in the traditional support mechanisms in the Japanese financial system. Major lenders to Japan Leasing were LTCB at ¥255 billion, Mitsui Trust at ¥145 billion and Sumitomo Trust at ¥145 billion. Its single largest shareholder was Ricoh, which had a book value equity investment of ¥3.7 billion. The biggest single burden from the Japan Leasing collapse will fall on unlisted agricultural co-operatives and financial institutions, which are owed ¥350 billion. The agricultural "zoku", or tribe, in the LDP was behind the attempts to force LTCB to rescue Japan Leasing and its failure to do so is seen as a major turning point in Japanese politics. "I think this is a very important event because the LDP members who are deeply involved in the agricultural sector have been defeated within the LDP," said Dr Yoshio Suzuki, deputy chairman of the opposition Liberal Party's policy board. There was little positive to come out of the Japan Leasing collapse according to Mr Jim McGinnis, banking analyst with Dresdner Kleinwort Benson. Japan was staggering towards a resolution to its bad loan problem and Japan Leasing was just one drop of bad debts in an enormous barrel. "They need ¥30 trillion to recapitalise the banks, but are taxpayers going to pay for that?" afr.com.au