Eight senior officers of Mumbai Police and Maharashtra Government, accused of organised crime by an Assistant Police Inspector, are now off the hook, thanks to a Supreme Court verdict.
The Supreme Court has ruled that Special Courts set up under the Maharashtra Control of Organised Crime Act (MCOCA) cannot take cognizance of any organized crime without sanction from a police officer in the rank of Additional Director General of Police (ADGP).
The ruling came on the Maharashtra government’s appeal against the December 22, 2005, verdict of a full bench of the Bombay High Court, which held that prior sanction from the ADGP was not a pre-condition for taking cognisance of any offence under MCOCA.
The HC had directed the Special MCOCA Judge to consider the private complaint made by Mumbai Assistant Police Inspector Nitindra Singh on August 19, 2004 against 14 persons, including eight senior police and government officials and members of the Anti-Corruption Bureau.
Some of the accused named by Singh were members of a raiding party that allegedly caught one Himmat Nanda accepting a bribe of Rs 3 lakh on behalf of Singh. To probe Singh’s allegations, the Special Judge had set up a Special Investigation Team (SIT) under JCP (Crime) Meera Borvankar.
After the SC verdict, no action can be taken under MCOCA against the persons named by Singh. Further, it would be impossible to prosecute a police officer under MCOCA without sanction from ADGP, irrespective of his involvement in an organized crime.
Earlier, two division benches of the Bombay HC had taken contrary views on the issue of sanction as required under Section 23(2) of MCOCA (see box).
Allowing the Maharashtra Government’s appeal, an SC bench headed by Justice Altamas Kabir ruled that both in case of a private complaint and a police report sanction from ADGP was a must.
The state government had argued that by putting in place the requirement of prior sanction by a senior police officer, the Legislature intended to check filing of mala fide private complaints misusing the provisions of MCOCA.
The SC said the provisions of MCOCA would have an overriding effect over the provisions of the Criminal Procedure Code and a Special Judge cannot invoke the Code for ordering an inquiry on a private complaint without taking sanction from ADGP.
Monday, June 1, 2009
Program to refurbish aging nuclear warheads faces setbacks
A decadelong effort to refurbish thousands of aging nuclear warheads has run into serious technical problems that have forced delays and exacerbated concerns about the Energy Department's ability to maintain the nation's strategic deterrent.
The program involves a type of warhead known as the W76, which is used on the Navy's Trident missile system and makes up more than half of the deployed warheads in the U.S. stockpile.
The refurbishment program is aimed at replacing thousands of parts that have aged since the bombs left the factory 20 and 30 years ago.
The $200-million-a-year program is a cornerstone of America's nuclear deterrent strategy, and the Energy Department has been under growing pressure from the military and Congress to meet tough deadlines to get the weapons ready.
In February, the department's National Nuclear Security Administration announced that the "first refurbished W76 nuclear warhead had been accepted into the U.S. nuclear weapons stockpile by the Navy."
But no delivery was ever made. The warhead is in pieces inside a production cell at the Energy Department's Pantex plant in Amarillo, Texas, according to an engineer at the facility.
The delay in retrofitting the warheads appears to validate long-standing concerns about an erosion of technical expertise at the Energy Department, as Cold War-era scientists and engineers retire and take with them detailed knowledge about the bombs.
Although the nation's nuclear weapons are functional and reliable, the W76 issue represents one of the most serious setbacks in the nuclear weapons program at least since the end of the Cold War and raises questions about the future, several experts told The Times.
"I wouldn't say the deterrent has been affected at all," said Philip Coyle, a former deputy director at the Lawrence Livermore National Laboratory and former assistant secretary of Defense. "It is, however, a reminder that expertise about nuclear weapons is a precious thing and needs to be maintained."
He said the W76 problem underscored concerns experts have long raised about maintaining nuclear weapons decades after they were designed, manufactured and tested.
As the nation reduces the size of its stockpile under treaty agreements with Russia, he said, the reliability of the remaining weapons becomes more important.
Damien LaVera, a spokesman for the National Nuclear Security Administration, said the department had not lost its crucial skills, but he acknowledged that retaining experienced weapons scientists and training a new generation of scientists were "an ongoing concern."
At issue with the W76, at least in part, is a classified component that was used in the original weapon but that engineers and scientists at the Energy Department's plant in Oak Ridge, Tenn., could not duplicate in a series of efforts over the last several years.
The component, known by the code word "fogbank," is thought to be made of an exotic material and is crucial to a hydrogen bomb reaching its designed energy level in the microseconds before it blows apart.
The W76 is designed to release energy equal to about 100 kilotons of TNT, through both fission and fusion of atoms.
When it came time to make new batches of fogbank for the refurbishment program, the current workforce was unable to duplicate the characteristics of the batches made in the 1970s and 1980s, according to a March report by the Government Accountability Office.
"I don't know how this happened that we forgot how to make fogbank," Coyle said. "It should not have happened, but it did."
Given the problems, the technical staff at the Pantex plant was stunned by the Energy Department announcement in February that the warhead had been delivered to the Navy, according to an engineer who spoke on condition of anonymity.
B&W Pantex, the private company that operates the plant, was still awaiting delivery of a classified part from another facility and cannot assemble the warhead, the engineer said.
Navy spokesman Lt. Clay Doss told The Times on Thursday: "We have not received delivery of any refurbished W76 warheads. The answer is none."
LaVera defended the accuracy of the February announcement, saying a federal council had decided to accept the final design of the weapon and therefore it was technically a part of the stockpile.
The failure of the Energy Department to actually deliver a W76 was brought to the attention of The Times by the Project on Government Oversight, a Washington-based watchdog group that has long expressed concern about poor performance at the nation's weapon sites.
NNSA gets away with producing shoddy work . . . and even lying to the public," said Danielle Brian, the group's executive director. "Our confidence in the stockpile cannot depend on lies."
The technical problems with the W76 were also partially disclosed in the report from the GAO, which said the Energy Department had failed to "effectively manage cost, schedule and technical risks" not only on the W76 program but on another refurbishment effort for a warhead known as the B61.
In the case of the B61, the Energy Department boasted that it had completed the job ahead of schedule and under cost, even though it sharply reduced the number of bombs that it rebuilt and curtailed the scope of the work on each bomb, the GAO said. The cost of refurbishing each bomb doubled, the office said.
LaVera said all issues with fogbank had been resolved. The only remaining W76 issue involves potential minor defects in its arming, fusing and firing system, the safety controls that prepare a nuclear weapon for detonation.
He said the existing design of the arming system had been certified, though the department was continuing to examine the issue.
"It is inaccurate to say that we are unable to ship the weapons because there is an issue or problem," LaVera said.
Not everybody agrees that the fogbank problem raises broad concerns about a loss of expertise.
Since the late 1990s, the nation has embarked on a program to invest billions of dollars in scientific research to keep the old weapons viable.
The issue is highly sensitive because many arms control advocates worry that such a loss could become a rationale for a resumption of nuclear testing.
The Energy Department's scientific program to support the stockpile "has done very well so far. Most people would say it has been a terrific success," said Sydney Drell, a nuclear weapons expert at Stanford University.
The department plans to deliver the first batch of W76s in late fall, LaVera said.
That would put it about two years behind schedule, a delay that has caused logistical problems for the Navy, the GAO said.
It is not yet clear how long it will take for the department to refurbish all 2,000 warheads in its current plan, but the process of gradually taking warheads out of service, refurbishing them and returning them to service could take an additional 10 years.
The program involves a type of warhead known as the W76, which is used on the Navy's Trident missile system and makes up more than half of the deployed warheads in the U.S. stockpile.
The refurbishment program is aimed at replacing thousands of parts that have aged since the bombs left the factory 20 and 30 years ago.
The $200-million-a-year program is a cornerstone of America's nuclear deterrent strategy, and the Energy Department has been under growing pressure from the military and Congress to meet tough deadlines to get the weapons ready.
In February, the department's National Nuclear Security Administration announced that the "first refurbished W76 nuclear warhead had been accepted into the U.S. nuclear weapons stockpile by the Navy."
But no delivery was ever made. The warhead is in pieces inside a production cell at the Energy Department's Pantex plant in Amarillo, Texas, according to an engineer at the facility.
The delay in retrofitting the warheads appears to validate long-standing concerns about an erosion of technical expertise at the Energy Department, as Cold War-era scientists and engineers retire and take with them detailed knowledge about the bombs.
Although the nation's nuclear weapons are functional and reliable, the W76 issue represents one of the most serious setbacks in the nuclear weapons program at least since the end of the Cold War and raises questions about the future, several experts told The Times.
"I wouldn't say the deterrent has been affected at all," said Philip Coyle, a former deputy director at the Lawrence Livermore National Laboratory and former assistant secretary of Defense. "It is, however, a reminder that expertise about nuclear weapons is a precious thing and needs to be maintained."
He said the W76 problem underscored concerns experts have long raised about maintaining nuclear weapons decades after they were designed, manufactured and tested.
As the nation reduces the size of its stockpile under treaty agreements with Russia, he said, the reliability of the remaining weapons becomes more important.
Damien LaVera, a spokesman for the National Nuclear Security Administration, said the department had not lost its crucial skills, but he acknowledged that retaining experienced weapons scientists and training a new generation of scientists were "an ongoing concern."
At issue with the W76, at least in part, is a classified component that was used in the original weapon but that engineers and scientists at the Energy Department's plant in Oak Ridge, Tenn., could not duplicate in a series of efforts over the last several years.
The component, known by the code word "fogbank," is thought to be made of an exotic material and is crucial to a hydrogen bomb reaching its designed energy level in the microseconds before it blows apart.
The W76 is designed to release energy equal to about 100 kilotons of TNT, through both fission and fusion of atoms.
When it came time to make new batches of fogbank for the refurbishment program, the current workforce was unable to duplicate the characteristics of the batches made in the 1970s and 1980s, according to a March report by the Government Accountability Office.
"I don't know how this happened that we forgot how to make fogbank," Coyle said. "It should not have happened, but it did."
Given the problems, the technical staff at the Pantex plant was stunned by the Energy Department announcement in February that the warhead had been delivered to the Navy, according to an engineer who spoke on condition of anonymity.
B&W Pantex, the private company that operates the plant, was still awaiting delivery of a classified part from another facility and cannot assemble the warhead, the engineer said.
Navy spokesman Lt. Clay Doss told The Times on Thursday: "We have not received delivery of any refurbished W76 warheads. The answer is none."
LaVera defended the accuracy of the February announcement, saying a federal council had decided to accept the final design of the weapon and therefore it was technically a part of the stockpile.
The failure of the Energy Department to actually deliver a W76 was brought to the attention of The Times by the Project on Government Oversight, a Washington-based watchdog group that has long expressed concern about poor performance at the nation's weapon sites.
NNSA gets away with producing shoddy work . . . and even lying to the public," said Danielle Brian, the group's executive director. "Our confidence in the stockpile cannot depend on lies."
The technical problems with the W76 were also partially disclosed in the report from the GAO, which said the Energy Department had failed to "effectively manage cost, schedule and technical risks" not only on the W76 program but on another refurbishment effort for a warhead known as the B61.
In the case of the B61, the Energy Department boasted that it had completed the job ahead of schedule and under cost, even though it sharply reduced the number of bombs that it rebuilt and curtailed the scope of the work on each bomb, the GAO said. The cost of refurbishing each bomb doubled, the office said.
LaVera said all issues with fogbank had been resolved. The only remaining W76 issue involves potential minor defects in its arming, fusing and firing system, the safety controls that prepare a nuclear weapon for detonation.
He said the existing design of the arming system had been certified, though the department was continuing to examine the issue.
"It is inaccurate to say that we are unable to ship the weapons because there is an issue or problem," LaVera said.
Not everybody agrees that the fogbank problem raises broad concerns about a loss of expertise.
Since the late 1990s, the nation has embarked on a program to invest billions of dollars in scientific research to keep the old weapons viable.
The issue is highly sensitive because many arms control advocates worry that such a loss could become a rationale for a resumption of nuclear testing.
The Energy Department's scientific program to support the stockpile "has done very well so far. Most people would say it has been a terrific success," said Sydney Drell, a nuclear weapons expert at Stanford University.
The department plans to deliver the first batch of W76s in late fall, LaVera said.
That would put it about two years behind schedule, a delay that has caused logistical problems for the Navy, the GAO said.
It is not yet clear how long it will take for the department to refurbish all 2,000 warheads in its current plan, but the process of gradually taking warheads out of service, refurbishing them and returning them to service could take an additional 10 years.
'Clean-tech' start-ups are pushing the green button
Amit Chatterjee worked for three Silicon Valley start-ups and software company SAP, but he was growing increasingly intrigued by global warming and climate change. The more he delved into the issue, the more he became convinced that there was a way to use software to help tackle the problem.
His idea -- to help companies track and manage their use of energy, water and other resources -- drew the backing of the valley's most prominent venture capital firm, Kleiner Perkins Caufield & Byers.
Today, thanks to Kleiner's $6-million investment, Chatterjee unveils his latest start-up, Hara, which monitors and manages companies' water and energy consumption, and helps them plan ways to mitigate their environmental effects.
Hara's arrival, after operating quietly for the last year and a half, shows how the tech wizards behind many Internet companies are now hard at work building digital solutions to save water, money, energy and maybe even the planet. Kleiner Perkins managing partner Ted Schlein, a Hara board member, calls it "the greening of IT," saying that large corporations are ready to use information technology to make their businesses more eco-friendly because it's the right thing to do and it can save them money.
Venture capitalists, big companies including Cisco Systems Inc. and General Electric Co. and private equity firms have been pumping money into a variety of green IT initiatives, said Ron Pernick, co-founder and principal of Clean Edge Inc., an environmental research and consulting firm. A major push includes an effort to make the nation's power grid "smarter" by using sensors and networking technology so companies can track their electricity use.
These initiatives look at the demand side -- figuring out how people are using energy -- rather than the supply side, such as solar power, to replace the type of energy being generated.
Hara's innovation, CEO Chatterjee said, is giving companies an "organizational metabolism index," much like a fitness trainer gives someone a body mass index. It measures the fossil fuels, water and waste at a company and calculates how to save money.
In the absence of a good software program, companies have been trying to get on top of this by manually entering data into Excel spreadsheets or other systems, said Rob Enderle, president and principal analyst for Enderle Group. Or they pay large fees to consulting companies to analyze their carbon footprints.
For the last few years, venture capitalists have poured money into so-called clean-tech companies, which use technology to solve environmental problems, at a much faster rate than traditional technology. The field appears particularly poised for growth as the Obama administration begins to pump stimulus dollars into green energy initiatives, and as governments around the world consider making companies pay for the amount of carbon they generate.
"Clean-tech investment almost doubled every year for the past several years," said Jessica Canning, research director for Dow Jones VentureSource. Venture funding of clean-tech companies rose to $5 billion last year from $687 million in 2005.
That money has dropped in the last two quarters as the turmoil in the financial markets has made investors reluctant to sink large sums into projects that could take years to pay off. Pricewaterhousecoopers reports that funding of clean-tech companies dropped 84% in the first quarter of 2009 to $154 million, down from $971 million the fourth quarter of 2008. Investing in solar shrank 97% and alternative fuels 69%.
"The capital-intensive companies like solar and biofuels, which were the key drivers of the past few years, really fell in the first quarter," said Tim Carey, head of PricewaterhouseCoopers' U.S. clean-tech division. "That was partly due to overall uncertainties in the economy. Those companies require large amounts of capital."
But software firms can be started for far less. "If you have less money, you have to be smart and invest in energy-efficiency technologies, and IT and management systems start becoming more effective," said Jacqueline Crespo, who leads the venture capital and technology practice at New Energy Finance Ltd. in Palo Alto, a research provider for the clean-energy industry. "You're going after the same market, but it's not as capital-intensive."
That strategy has the added bonus of appealing more directly to the folks who will ultimately buy the new technology. Solar panels could be a hard sell if the return on investment is still years away, but a software system that helps a company become more energy efficient may pay for itself a lot sooner.
That's what Coca-Cola Co. found when it tried Hara's software in a pilot test at 12 sites around the world.
"Most of the stuff that is energy-efficiency-related has real good economics," said Bryan Jacob, director of energy management and climate protection for Coca Cola. "When you get into some things like fuel switching, or renewable fuels like solar or wind, you've crossed into a realm where the cost associated with it is more than the straight economic payback on it."
Coke used Hara in one of its subsidiaries that's building 15 power plants in Eastern Europe and Africa, and has found it an effective way to measure how much energy the plants are using, what the future economics of that energy will be, and what the company could do to save energy and money in the future.
In a way, said Schlein of Kleiner Perkins, it's the same concept from other software fields. Much the way PeopleSoft Inc. provided companies a new way to manage human resources, or Siebel Systems built a big business in managing sales forces, clean-tech companies can help businesses stay on top of energy uses.
His idea -- to help companies track and manage their use of energy, water and other resources -- drew the backing of the valley's most prominent venture capital firm, Kleiner Perkins Caufield & Byers.
Today, thanks to Kleiner's $6-million investment, Chatterjee unveils his latest start-up, Hara, which monitors and manages companies' water and energy consumption, and helps them plan ways to mitigate their environmental effects.
Hara's arrival, after operating quietly for the last year and a half, shows how the tech wizards behind many Internet companies are now hard at work building digital solutions to save water, money, energy and maybe even the planet. Kleiner Perkins managing partner Ted Schlein, a Hara board member, calls it "the greening of IT," saying that large corporations are ready to use information technology to make their businesses more eco-friendly because it's the right thing to do and it can save them money.
Venture capitalists, big companies including Cisco Systems Inc. and General Electric Co. and private equity firms have been pumping money into a variety of green IT initiatives, said Ron Pernick, co-founder and principal of Clean Edge Inc., an environmental research and consulting firm. A major push includes an effort to make the nation's power grid "smarter" by using sensors and networking technology so companies can track their electricity use.
These initiatives look at the demand side -- figuring out how people are using energy -- rather than the supply side, such as solar power, to replace the type of energy being generated.
Hara's innovation, CEO Chatterjee said, is giving companies an "organizational metabolism index," much like a fitness trainer gives someone a body mass index. It measures the fossil fuels, water and waste at a company and calculates how to save money.
In the absence of a good software program, companies have been trying to get on top of this by manually entering data into Excel spreadsheets or other systems, said Rob Enderle, president and principal analyst for Enderle Group. Or they pay large fees to consulting companies to analyze their carbon footprints.
For the last few years, venture capitalists have poured money into so-called clean-tech companies, which use technology to solve environmental problems, at a much faster rate than traditional technology. The field appears particularly poised for growth as the Obama administration begins to pump stimulus dollars into green energy initiatives, and as governments around the world consider making companies pay for the amount of carbon they generate.
"Clean-tech investment almost doubled every year for the past several years," said Jessica Canning, research director for Dow Jones VentureSource. Venture funding of clean-tech companies rose to $5 billion last year from $687 million in 2005.
That money has dropped in the last two quarters as the turmoil in the financial markets has made investors reluctant to sink large sums into projects that could take years to pay off. Pricewaterhousecoopers reports that funding of clean-tech companies dropped 84% in the first quarter of 2009 to $154 million, down from $971 million the fourth quarter of 2008. Investing in solar shrank 97% and alternative fuels 69%.
"The capital-intensive companies like solar and biofuels, which were the key drivers of the past few years, really fell in the first quarter," said Tim Carey, head of PricewaterhouseCoopers' U.S. clean-tech division. "That was partly due to overall uncertainties in the economy. Those companies require large amounts of capital."
But software firms can be started for far less. "If you have less money, you have to be smart and invest in energy-efficiency technologies, and IT and management systems start becoming more effective," said Jacqueline Crespo, who leads the venture capital and technology practice at New Energy Finance Ltd. in Palo Alto, a research provider for the clean-energy industry. "You're going after the same market, but it's not as capital-intensive."
That strategy has the added bonus of appealing more directly to the folks who will ultimately buy the new technology. Solar panels could be a hard sell if the return on investment is still years away, but a software system that helps a company become more energy efficient may pay for itself a lot sooner.
That's what Coca-Cola Co. found when it tried Hara's software in a pilot test at 12 sites around the world.
"Most of the stuff that is energy-efficiency-related has real good economics," said Bryan Jacob, director of energy management and climate protection for Coca Cola. "When you get into some things like fuel switching, or renewable fuels like solar or wind, you've crossed into a realm where the cost associated with it is more than the straight economic payback on it."
Coke used Hara in one of its subsidiaries that's building 15 power plants in Eastern Europe and Africa, and has found it an effective way to measure how much energy the plants are using, what the future economics of that energy will be, and what the company could do to save energy and money in the future.
In a way, said Schlein of Kleiner Perkins, it's the same concept from other software fields. Much the way PeopleSoft Inc. provided companies a new way to manage human resources, or Siebel Systems built a big business in managing sales forces, clean-tech companies can help businesses stay on top of energy uses.
Suspected Pasadena bank robber jumps from atop 5-story parking structure
A suspected bank robber in Pasadena was critically injured this morning when he jumped from the top of a five-story parking structure after he was cornered by police.
Pasadena police responded to a call about 9:15 a.m. about a robbery in the 100 block of South Lake Avenue, according to police spokeswoman Janet Pope-Givens.
Someone inside the bank followed the suspect outside and gave police information on the man’s whereabouts, she said. Police surrounded a nearby parking structure, where they believed the suspect was hiding, and combed through each floor looking for the man.
About an hour into the search, the suspect emerged from behind a parked vehicle on one of the mid-level stories. He then ran to the roof of the structure, which was about five stories tall, Pope-Givens said.
Before officers were able to get to the man, he jumped off the side of the structure, landing on a concrete driveway, police said. The suspected robber suffered multiple fractures and was taken to a hospital. His identity was not immediately released. He had allegedly told a bank teller that he was armed, but no weapon was seen during the robbery, police said.
courtsey.latimes
Pasadena police responded to a call about 9:15 a.m. about a robbery in the 100 block of South Lake Avenue, according to police spokeswoman Janet Pope-Givens.
Someone inside the bank followed the suspect outside and gave police information on the man’s whereabouts, she said. Police surrounded a nearby parking structure, where they believed the suspect was hiding, and combed through each floor looking for the man.
About an hour into the search, the suspect emerged from behind a parked vehicle on one of the mid-level stories. He then ran to the roof of the structure, which was about five stories tall, Pope-Givens said.
Before officers were able to get to the man, he jumped off the side of the structure, landing on a concrete driveway, police said. The suspected robber suffered multiple fractures and was taken to a hospital. His identity was not immediately released. He had allegedly told a bank teller that he was armed, but no weapon was seen during the robbery, police said.
courtsey.latimes
Aging: Menopause Slows the Brain, Temporarily
Many women entering menopause say their brains do not seem to work as well as they used to.
A new study suggests that they may be right, but it also appears the lapses are temporary.
Researchers studied more than 2,300 women, ages 42 to 52, over four years.
Some women in the study, which appears in Neurology, were still menstruating regularly. Others had completed menopause, and the remainder were in so-called perimenopause — that is, they were still having some periods but their bodies were experiencing changes as they neared menopause.
The researchers, led by Dr. Gail Greendale of the University of California, Los Angeles, gave the women a series of tests to determine cognitive skills. The tests measured memory and how quickly they processed information.
When it came to processing speed, the study found, all the women except those in the late perimenopausal stage improved their scores when they took the test repeatedly. The researchers made similar findings with the tests for verbal memory.
The differences between the women were less a matter of some scoring worse than others, but more of some failing to improve as much as others over time. And women with lower scores as they entered menopause did better after it.
A new study suggests that they may be right, but it also appears the lapses are temporary.
Researchers studied more than 2,300 women, ages 42 to 52, over four years.
Some women in the study, which appears in Neurology, were still menstruating regularly. Others had completed menopause, and the remainder were in so-called perimenopause — that is, they were still having some periods but their bodies were experiencing changes as they neared menopause.
The researchers, led by Dr. Gail Greendale of the University of California, Los Angeles, gave the women a series of tests to determine cognitive skills. The tests measured memory and how quickly they processed information.
When it came to processing speed, the study found, all the women except those in the late perimenopausal stage improved their scores when they took the test repeatedly. The researchers made similar findings with the tests for verbal memory.
The differences between the women were less a matter of some scoring worse than others, but more of some failing to improve as much as others over time. And women with lower scores as they entered menopause did better after it.
In China, Geithner Backs Cooperation
Timothy F. Geithner, the U.S. Treasury secretary, said Monday that the global financial crisis seemed to be easing, but that the United States and China would have to work together to stabilize In a speech at Peking University, Mr. Geithner encouraged China to diversify its economy away from a heavy reliance on exports while offering Beijing assurances that Washington intended to tackle its deficit and protect the value of China’s huge investment in United States government debt.
“We will cut our deficit, and we will eliminate the extraordinary government support that we have put in place to overcome the crisis,” Mr. Geithner told a gathering of students and faculty at the university.
A rebalanced global economy would likely mean that the United States would save more and consume less, he said, and that China would encourage its own consumers to spend more and save less.
This is Mr. Geithner’s first visit to Beijing since becoming Treasury secretary, and on Tuesday he is scheduled to meet with President Hu Jintao and Prime Minister Wen Jiabao, as well as other high-ranking officials.
Under the pressures of the global economic downturn, relations between the United States and China are undergoing some fundamental changes. China is growing more assertive on the international stage, and Washington is seeking to find ways to cooperate with Beijing on everything from economic reforms to climate change.
China is the largest holder of U.S. government debt, and a growing number of Chinese officials and economists have expressed concern in recent months that the value of those debt holdings will plunge if inflation takes off or the dollar weakens further because of mounting U.S. deficits.
In fact, interest rates on U.S. Treasury notes have been rising lately, cutting their value by just over 5 percent.
Some Chinese economists are pressing Beijing to slow its accumulation of Treasury bills and others are even pushing for the creation of an alternative reserve currency as a hedge against the U.S. dollar.
Following Mr. Geithner’s speech Monday, a student asked the Treasury secretary whether China’s investments in the United States were safe.
He responded without hesitation. “Chinese financial assets are very safe,” Mr. Geithner said, eliciting some laughter. He then quickly said that the United States still had deep and liquid financial markets, and that the administration of President Barack Obama was committed to tackling the deficit and maintaining a strong dollar.
In his speech, Mr. Geithner encouraged Beijing to work with Washington to create more balanced, sustainable growth for the two countries’ economies.
“China and the United States individually and together are so important in the global economy and financial system that what we do has a direct impact on the stability and strength of the international economic system,” he said.
Mr. Geithner touched on currency issues just briefly. Some economists have long argued that China keeps its currency intentionally weak in order to make exports to the United States affordable, and the U.S. Treasury secretary did urge China to move toward a more flexible exchange rate. But he did not emphasize that point.
Currency debates and trade frictions had flared between the United States and China during the administration of President George W. Bush, even though relations were solid overall. For now, the Obama administration seems determined to avoid tensions and to search for ways to cooperate with China.
Under Mr. Bush, Henry M. Paulson Jr., the U.S. Treasury secretary, held regular meetings with officials in Beijing as part of the so-called the strategic economic dialogue.
The Obama administration has decided to broaden those discussions, with Secretary of State Hillary Rodham Clinton taking part, in what is now being called the strategic and economic dialogue.
Mr. Geithner said that he would begin to discuss some of the pressing economic issues this week in Beijing, where he has been given a warm welcome. At Peking University, the school recognized his family’s contributions to China, calling the Geithners “friends of China.”
Mr. Geithner’s father, Peter F. Geithner, was the director of the Asia program of the Ford Foundation in the 1980s and opened its Beijing office. Under his leadership, in the 1980s and 1990s, the foundation offered support for many Chinese scholars to travel to the United States to study.
and rebalance the world economy.
“We will cut our deficit, and we will eliminate the extraordinary government support that we have put in place to overcome the crisis,” Mr. Geithner told a gathering of students and faculty at the university.
A rebalanced global economy would likely mean that the United States would save more and consume less, he said, and that China would encourage its own consumers to spend more and save less.
This is Mr. Geithner’s first visit to Beijing since becoming Treasury secretary, and on Tuesday he is scheduled to meet with President Hu Jintao and Prime Minister Wen Jiabao, as well as other high-ranking officials.
Under the pressures of the global economic downturn, relations between the United States and China are undergoing some fundamental changes. China is growing more assertive on the international stage, and Washington is seeking to find ways to cooperate with Beijing on everything from economic reforms to climate change.
China is the largest holder of U.S. government debt, and a growing number of Chinese officials and economists have expressed concern in recent months that the value of those debt holdings will plunge if inflation takes off or the dollar weakens further because of mounting U.S. deficits.
In fact, interest rates on U.S. Treasury notes have been rising lately, cutting their value by just over 5 percent.
Some Chinese economists are pressing Beijing to slow its accumulation of Treasury bills and others are even pushing for the creation of an alternative reserve currency as a hedge against the U.S. dollar.
Following Mr. Geithner’s speech Monday, a student asked the Treasury secretary whether China’s investments in the United States were safe.
He responded without hesitation. “Chinese financial assets are very safe,” Mr. Geithner said, eliciting some laughter. He then quickly said that the United States still had deep and liquid financial markets, and that the administration of President Barack Obama was committed to tackling the deficit and maintaining a strong dollar.
In his speech, Mr. Geithner encouraged Beijing to work with Washington to create more balanced, sustainable growth for the two countries’ economies.
“China and the United States individually and together are so important in the global economy and financial system that what we do has a direct impact on the stability and strength of the international economic system,” he said.
Mr. Geithner touched on currency issues just briefly. Some economists have long argued that China keeps its currency intentionally weak in order to make exports to the United States affordable, and the U.S. Treasury secretary did urge China to move toward a more flexible exchange rate. But he did not emphasize that point.
Currency debates and trade frictions had flared between the United States and China during the administration of President George W. Bush, even though relations were solid overall. For now, the Obama administration seems determined to avoid tensions and to search for ways to cooperate with China.
Under Mr. Bush, Henry M. Paulson Jr., the U.S. Treasury secretary, held regular meetings with officials in Beijing as part of the so-called the strategic economic dialogue.
The Obama administration has decided to broaden those discussions, with Secretary of State Hillary Rodham Clinton taking part, in what is now being called the strategic and economic dialogue.
Mr. Geithner said that he would begin to discuss some of the pressing economic issues this week in Beijing, where he has been given a warm welcome. At Peking University, the school recognized his family’s contributions to China, calling the Geithners “friends of China.”
Mr. Geithner’s father, Peter F. Geithner, was the director of the Asia program of the Ford Foundation in the 1980s and opened its Beijing office. Under his leadership, in the 1980s and 1990s, the foundation offered support for many Chinese scholars to travel to the United States to study.
and rebalance the world economy.
The Ad Campaign for a ‘New’ G.M.
Can General Motors make up for decades of mistakes and misfires in a minute?
That is the ambitious goal of a 60-second commercial to begin running on television on Wednesday. The spot is already available on a Web site (gmreinvention.com) and on YouTube.
The commercial is part mea culpa, part gauzy paean to the concept of a “new” General Motors. Although portions seem self-serving, there are moments when a viewer may think, “Hey, maybe G.M. deserves another chance.”
Such moments come when the commercial speaks plainly. “Let’s be completely honest,” an announcer says. “No company wants to go through this.”
“General Motors needs to start over, in order to get stronger,” he adds.
Other effective moments come when the announcer says things G.M. ought to have said years ago.
“There was a time when eight different brands made sense,” the announcer says. “Not any more.” Critics have contended that General Motors was spreading its marketing resources too thin across too many nameplates.
“There was a time when our cost structure could compete worldwide,” the announcer says. “Not any more.” That is a reference to the gap in production costs between G.M. and its overseas rivals.
Other elements are overly slick for an apologetic commercial. There is too much use of the echo effect that writers hope will elevate prose to poetry. For instance, the announcer intones: “This is not about going out of business. This is about getting down to business.”
And the imagery on screen veers from powerful to bland. There is a wonderful zoom-in on the fist of the boxer Joe Louis that stands on Jefferson Avenue in downtown Detroit, as if to say, “Pow! Bam! We’re coming back!”
But there are also generic photographs — a moon landing, sports teams, a butterfly, a horse race, an American flag — that could have come from any feel-good corporate image campaign.
The commercial was created by Deutsch, an advertising agency owned by the Interpublic Group of Companies that handles assignments for G.M. like producing campaigns for the (soon to be divested) Saturn division.
That is the ambitious goal of a 60-second commercial to begin running on television on Wednesday. The spot is already available on a Web site (gmreinvention.com) and on YouTube.
The commercial is part mea culpa, part gauzy paean to the concept of a “new” General Motors. Although portions seem self-serving, there are moments when a viewer may think, “Hey, maybe G.M. deserves another chance.”
Such moments come when the commercial speaks plainly. “Let’s be completely honest,” an announcer says. “No company wants to go through this.”
“General Motors needs to start over, in order to get stronger,” he adds.
Other effective moments come when the announcer says things G.M. ought to have said years ago.
“There was a time when eight different brands made sense,” the announcer says. “Not any more.” Critics have contended that General Motors was spreading its marketing resources too thin across too many nameplates.
“There was a time when our cost structure could compete worldwide,” the announcer says. “Not any more.” That is a reference to the gap in production costs between G.M. and its overseas rivals.
Other elements are overly slick for an apologetic commercial. There is too much use of the echo effect that writers hope will elevate prose to poetry. For instance, the announcer intones: “This is not about going out of business. This is about getting down to business.”
And the imagery on screen veers from powerful to bland. There is a wonderful zoom-in on the fist of the boxer Joe Louis that stands on Jefferson Avenue in downtown Detroit, as if to say, “Pow! Bam! We’re coming back!”
But there are also generic photographs — a moon landing, sports teams, a butterfly, a horse race, an American flag — that could have come from any feel-good corporate image campaign.
The commercial was created by Deutsch, an advertising agency owned by the Interpublic Group of Companies that handles assignments for G.M. like producing campaigns for the (soon to be divested) Saturn division.
Boy chosen by Dalai Lama turns back on Buddhist order
As a toddler, he was put on a throne and worshipped as by monks who treated him like a god. But the boy chosen by the Dalai Lama as a reincarnation of a spiritual leader has caused consternation – and some embarrassment – for Tibetan Buddhists by turning his back on the order that had such high hopes for him.
Instead of leading a monastic life, Osel Hita Torres now sports baggy trousers and long hair, and is more likely to quote Jimi Hendrix than Buddha.
Yesterday he bemoaned the misery of a youth deprived of television, football and girls. Movies were also forbidden – except for a sanctioned screening of The Golden Child starring Eddie Murphy, about a kidnapped child lama with magical powers. "I never felt like that boy," he said.
He is now studying film in Madrid and has denounced the Buddhist order that elevated him to guru status. "They took me away from my family and stuck me in a medieval situation in which I suffered a great deal," said Torres, 24, describing how he was whisked from obscurity in Granada to a monastery in southern India. "It was like living a lie," he told the Spanish newspaper El Mundo. Despite his rebelliousness, he is still known as Lama Tenzin Osel Rinpoche and revered by the Buddhist community. A prayer for his "long life" still adorns the website of the Foundation to Preserve the Mahayana Tradition, which has 130 centres around the world. The website features a biography of the renegade guru that gushes about his peaceful, meditative countenance as a baby. In Tibetan Buddhism, a lama is one of a lineage of reincarnated spiritual leaders, the most famous of which is the Dalai Lama.
According to the foundation biography, another leader suspected Torres was the reincarnation of the recently deceased Lama Yeshe when he was only five months old. In 1986, at 14 months, his parents took him to see the Dalai Lama in Dharamsala, India. The toddler was chosen out of nine other candidates and eventually "enthroned".
At six, he was allowed to socialise only with other reincarnated souls – though for a time he said he lived next to the actor Richard Gere's cabin.
By 18, he had never seen couples kiss. His first disco experience was a shock. "I was amazed to watch everyone dance. What were all those people doing, bouncing, stuck to one another, enclosed in a box full of smoke?"
Instead of leading a monastic life, Osel Hita Torres now sports baggy trousers and long hair, and is more likely to quote Jimi Hendrix than Buddha.
Yesterday he bemoaned the misery of a youth deprived of television, football and girls. Movies were also forbidden – except for a sanctioned screening of The Golden Child starring Eddie Murphy, about a kidnapped child lama with magical powers. "I never felt like that boy," he said.
He is now studying film in Madrid and has denounced the Buddhist order that elevated him to guru status. "They took me away from my family and stuck me in a medieval situation in which I suffered a great deal," said Torres, 24, describing how he was whisked from obscurity in Granada to a monastery in southern India. "It was like living a lie," he told the Spanish newspaper El Mundo. Despite his rebelliousness, he is still known as Lama Tenzin Osel Rinpoche and revered by the Buddhist community. A prayer for his "long life" still adorns the website of the Foundation to Preserve the Mahayana Tradition, which has 130 centres around the world. The website features a biography of the renegade guru that gushes about his peaceful, meditative countenance as a baby. In Tibetan Buddhism, a lama is one of a lineage of reincarnated spiritual leaders, the most famous of which is the Dalai Lama.
According to the foundation biography, another leader suspected Torres was the reincarnation of the recently deceased Lama Yeshe when he was only five months old. In 1986, at 14 months, his parents took him to see the Dalai Lama in Dharamsala, India. The toddler was chosen out of nine other candidates and eventually "enthroned".
At six, he was allowed to socialise only with other reincarnated souls – though for a time he said he lived next to the actor Richard Gere's cabin.
By 18, he had never seen couples kiss. His first disco experience was a shock. "I was amazed to watch everyone dance. What were all those people doing, bouncing, stuck to one another, enclosed in a box full of smoke?"
General Motors declares bankruptcy – the biggest manufacturing collapse in US history
America's biggest carmaker, General Motors, declared itself bankrupt today in a legal filing at a federal courthouse in downtown Manhattan, kicking off the biggest industrial insolvency in US history.
GM filed for Chapter 11 protection against its creditors' demands at 8am local time after racking up losses of $81bn (£50bn) over four years, putting a veteran bankruptcy judge, Robert Gerber, in charge of the future of 235,000 employees worldwide.
Speaking in Washington a few hours after the filing, Barack Obama said the GM restructuring plan was "tough but fair". He acknowledged that General Motors stakeholders – its parts suppliers, dealers, debt-holders, shareholders, workers and retirees – were making tough sacrifices to keep the company afloat.
"I want to be honest with you: building a leaner GM will come at a cost," he said. "You will have to make a sacrifice for the next generation so that our children can grow up in an America that still makes things."
Based in Detroit, the 101-year-old company is a stalwart of the US manufacturing base, producing vehicles with brands such as Chevrolet, Cadillac, Hummer, Opel and Vauxhall. Its filing comes a month after its smaller rival Chrysler declared bankruptcy, leaving two of the top three American motor manufacturers under court protection.
GM will continue to manufacture and sell cars under bankruptcy and the US government is hoping for a swift, "surgical" process under which the company will emerge in smaller, streamlined form within 60 to 90 days.
Obama said the massive reorganisation of GM would leave the US government holding 60% of the company's equity. But it was necessary to preserve an iconic symbol of American business and maintain a viable US auto industry.
At the White House, flanked by his economic advisers and cabinet secretaries, Obama reiterated that the government was a "reluctant" shareholder in General Motors, but said the alternative – extending more loans – would burden the new company with debt and would hinder its re-emergence as a viable company.
"I recognise that this may give some Americans pause," he said. "We're making these investments not because I want to spend the American people's tax dollars but because I want to protect them."
GM is the largest industrial corporation ever to go bankrupt in the US and the third-largest bankruptcy of any sort, behind the investment bank Lehman Brothers and the telecommunications firm WorldCom.
GM's chairman, Kent Kresa, said the board had authorised bankruptcy‚ "with regret that this path proved necessary despite the best efforts of so many".
He did his best to put a positive spin on the move, describing it as a "new beginning" for the company: "A court-supervised process and transfer of assets will enable a new GM to emerge as a stronger, healthier, more focused and nimbler company with a determination not to just survive but to excel."
Judge Gerber, who will rule on the competing claims of GM's creditors, is an old hand at high-profile insolvencies, having handled the bankruptcy of firms such as Adelphia and Global Crossing.
The carmaker has received $19bn of emergency aid from the treasury to keep it afloat and a further $30bn of government funding is likely to be forthcoming to see it through bankruptcy.
In return for its support, the Obama administration is likely to get a 60% ownership stake in the company. Canada's government, which is contributing billions of dollars in further help, will get 12.5% with unions and bondholders holding the rest.
Until it was overtaken by Toyota last year, GM was the largest carmaker in the world. But the company has been hobbled by a collapse in demand for new vehicles from the US market, where industry-wide sales of cars have dropped from 17m a year to fewer than 10m.
David Cole, chairman of the Michigan-based Center for Automotive Research, said last year's soaring fuel prices proved to be the final straw, pushing customers towards smaller, more fuel-efficient vehicles from Asian manufacturers.
"The financial meltdown in the economy has driven the auto industry into depression," he said. "We have an auto depression, not a recession."
To restore profitability, GM's chief executive, Fritz Henderson, has made it clear that cuts will need to be deep and permanent. He is selling chunks of the company dubbed "old GM", including its European operation, which employs 5,500 people making Vauxhall cars in Britain. Brands such as Saturn, Saab and Hummer are on the block and Pontiac, a sporty "muscle car" marque, is to close.
GM's US manufacturing workforce is to shrink from 113,000 three years ago to just 38,000 by 2011. Scores of factories across the US are shutting for an extended summer break and GM is slashing its network of dealership showrooms by 40%.
The extent of the government's intervention in the motor industry has alarmed business organisations. Thomas Donohue, president of the US Chamber of Commerce, warned today that GM would not prosper if it was run by the Obama administration and the United Auto Workers union.
"If members of Congress, along with government officials from the United States to Germany to Canada, are allowed undue influence over management's decisions, then you can write this down: these companies will not return to profitability and their survival will be seriously challenged," said Donohue.
Obama's auto industry taskforce had initially hoped that GM could be kept afloat without going through bankruptcy. But bondholders, who are owed $27bn by the carmaker, have been reluctant to swap their debt for a small equity stake.
Over the weekend, 54% of these bondholders indicated that they were willing to accept an improved deal under which they could eventually get up to 25% of GM, stoking optimism that the bankruptcy could proceed swiftly, without a long, drawn-out fight over assets that risked pushing the company into liquidation.
The 24-page bankruptcy filing, which gives GM's address as 300 Renaissance Centre, Detroit was lodged under the name of a Manhattan vehicle dealer, Chevrolet-Saturn of Harlem, which is owed money by the carmaker.
A list of GM's largest debtors is topped by the Wilmington Trust Company of Delaware, which represents bondholders owed $22.7bn, followed by the United Auto Workers union on behalf of employees owed $20.5bn.
Other claims include demands for money from the car rental firms Avis and Enterprise, the French advertising agency Publicis, the computer maker Hewlett-Packard, the oil firm Exxon Mobil and Lakshmi Mittal's steel corporation, Arcelor Mittal.
GM filed for Chapter 11 protection against its creditors' demands at 8am local time after racking up losses of $81bn (£50bn) over four years, putting a veteran bankruptcy judge, Robert Gerber, in charge of the future of 235,000 employees worldwide.
Speaking in Washington a few hours after the filing, Barack Obama said the GM restructuring plan was "tough but fair". He acknowledged that General Motors stakeholders – its parts suppliers, dealers, debt-holders, shareholders, workers and retirees – were making tough sacrifices to keep the company afloat.
"I want to be honest with you: building a leaner GM will come at a cost," he said. "You will have to make a sacrifice for the next generation so that our children can grow up in an America that still makes things."
Based in Detroit, the 101-year-old company is a stalwart of the US manufacturing base, producing vehicles with brands such as Chevrolet, Cadillac, Hummer, Opel and Vauxhall. Its filing comes a month after its smaller rival Chrysler declared bankruptcy, leaving two of the top three American motor manufacturers under court protection.
GM will continue to manufacture and sell cars under bankruptcy and the US government is hoping for a swift, "surgical" process under which the company will emerge in smaller, streamlined form within 60 to 90 days.
Obama said the massive reorganisation of GM would leave the US government holding 60% of the company's equity. But it was necessary to preserve an iconic symbol of American business and maintain a viable US auto industry.
At the White House, flanked by his economic advisers and cabinet secretaries, Obama reiterated that the government was a "reluctant" shareholder in General Motors, but said the alternative – extending more loans – would burden the new company with debt and would hinder its re-emergence as a viable company.
"I recognise that this may give some Americans pause," he said. "We're making these investments not because I want to spend the American people's tax dollars but because I want to protect them."
GM is the largest industrial corporation ever to go bankrupt in the US and the third-largest bankruptcy of any sort, behind the investment bank Lehman Brothers and the telecommunications firm WorldCom.
GM's chairman, Kent Kresa, said the board had authorised bankruptcy‚ "with regret that this path proved necessary despite the best efforts of so many".
He did his best to put a positive spin on the move, describing it as a "new beginning" for the company: "A court-supervised process and transfer of assets will enable a new GM to emerge as a stronger, healthier, more focused and nimbler company with a determination not to just survive but to excel."
Judge Gerber, who will rule on the competing claims of GM's creditors, is an old hand at high-profile insolvencies, having handled the bankruptcy of firms such as Adelphia and Global Crossing.
The carmaker has received $19bn of emergency aid from the treasury to keep it afloat and a further $30bn of government funding is likely to be forthcoming to see it through bankruptcy.
In return for its support, the Obama administration is likely to get a 60% ownership stake in the company. Canada's government, which is contributing billions of dollars in further help, will get 12.5% with unions and bondholders holding the rest.
Until it was overtaken by Toyota last year, GM was the largest carmaker in the world. But the company has been hobbled by a collapse in demand for new vehicles from the US market, where industry-wide sales of cars have dropped from 17m a year to fewer than 10m.
David Cole, chairman of the Michigan-based Center for Automotive Research, said last year's soaring fuel prices proved to be the final straw, pushing customers towards smaller, more fuel-efficient vehicles from Asian manufacturers.
"The financial meltdown in the economy has driven the auto industry into depression," he said. "We have an auto depression, not a recession."
To restore profitability, GM's chief executive, Fritz Henderson, has made it clear that cuts will need to be deep and permanent. He is selling chunks of the company dubbed "old GM", including its European operation, which employs 5,500 people making Vauxhall cars in Britain. Brands such as Saturn, Saab and Hummer are on the block and Pontiac, a sporty "muscle car" marque, is to close.
GM's US manufacturing workforce is to shrink from 113,000 three years ago to just 38,000 by 2011. Scores of factories across the US are shutting for an extended summer break and GM is slashing its network of dealership showrooms by 40%.
The extent of the government's intervention in the motor industry has alarmed business organisations. Thomas Donohue, president of the US Chamber of Commerce, warned today that GM would not prosper if it was run by the Obama administration and the United Auto Workers union.
"If members of Congress, along with government officials from the United States to Germany to Canada, are allowed undue influence over management's decisions, then you can write this down: these companies will not return to profitability and their survival will be seriously challenged," said Donohue.
Obama's auto industry taskforce had initially hoped that GM could be kept afloat without going through bankruptcy. But bondholders, who are owed $27bn by the carmaker, have been reluctant to swap their debt for a small equity stake.
Over the weekend, 54% of these bondholders indicated that they were willing to accept an improved deal under which they could eventually get up to 25% of GM, stoking optimism that the bankruptcy could proceed swiftly, without a long, drawn-out fight over assets that risked pushing the company into liquidation.
The 24-page bankruptcy filing, which gives GM's address as 300 Renaissance Centre, Detroit was lodged under the name of a Manhattan vehicle dealer, Chevrolet-Saturn of Harlem, which is owed money by the carmaker.
A list of GM's largest debtors is topped by the Wilmington Trust Company of Delaware, which represents bondholders owed $22.7bn, followed by the United Auto Workers union on behalf of employees owed $20.5bn.
Other claims include demands for money from the car rental firms Avis and Enterprise, the French advertising agency Publicis, the computer maker Hewlett-Packard, the oil firm Exxon Mobil and Lakshmi Mittal's steel corporation, Arcelor Mittal.
Seven days of torture that will sink – or save – Brown's premiership
Gordon Brown's aides believe he needs to endure only one more week of torture over his leadership before the Labour party and the media realise he is staying until the election, and he can then start to be judged fairly alongside David Cameron. But Brown also knows the next few days could be the most perilous for his premiership since he took office in May 2007.
He needs to seize the initiative quickly by resolving sharp differences of view within the cabinet on a full programme of constitutional reform.
He needs to navigate a fraught reshuffle, probably on Friday, that could see changes to the chancellorship and the Home Office, two of three great offices of state.
And he will have to manage a tense party as it goes through a drawn-out 72 hours of escalating panic in the face of crushing reverses in the county council elections on Thursday night and throughout Friday. That panic will reach a crescendo on Sunday night as the European election results trickle through, and Labour faces the prospect of coming fourth behind not just the Conservatives and the Liberal Democrats, but even Ukip.
As one minister said yesterday: "The actual level of the Labour vote will make a massive categorical difference. It depends if it is 15%, 25% and 35%. The actual level makes a world of difference to Gordon and the party's mood."
All the while, Brown will have to show a steadier hand in response to the daily drip of allegations coming out of the Daily Telegraph. He will not want a repeat of yesterday, when the chancellor, Alistair Darling, and Brown both put out statements insisting the Telegraph's latest allegations were wrong, only for the denial to be retracted within two hours.
But the prime minister reckons if he can chart these perilous waters intact, he will be in the clear and can set out what he describes as a national plan for Britain.
On expenses and the constitution, the cabinet will meet tomorrow to discuss a paper that offers a twin-track strategy. Harriet Harman, leader of the house, and Jack Straw, the justice secretary, will propose reforms to strengthen the role of backbenchers in relation to the executive, both through changes to parliament and through a constitutional renewal bill. It will cover the royal prerogative, war-making powers, the attorney general and a new code of conduct for MPs.
There will also be proposals to elect select committee chairs and remove the executive veto over private members' bills, and new powers for backbenchers to put issues to the vote in the Commons. It is likely that a draft House of Lords reform bill will also be published.
Plans are still being discussed for a citizens' summit, a constitutional convention, a panel of outside experts who would look at electoral reform, a bill of rights, and a written constitution.
Brown can probably resolve the differences in the cabinet over constitutional reform, even if there is frustration at the slowness of the government reaction.
The greater problem is the imminent reshuffle. But as one cabinet aide admitted yesterday: "Normally reshuffles are displays of prime ministerial power and patronage, but this could be the opposite. Some ministers could walk out or resign, and then the whole thing unravels."
The betting inside cabinet circles is that the reshuffle will take place on Friday or Saturday between the close of polls and the European election rout. Brown at that point will be on the brink of a disaster, but its full scale will not be known, thus destabilising any cabinet members thinking of mounting a coup.
Similarly, those on the backbenches wanting to oust Brown – the most likely course of events – will probably have to raise the standard of rebellion after the polls close on Thursday night, but will not know if the voters have provided them with the ammunition they need. The rebels will have to build momentum over the coming weekend – and all in the face of a display of "prime ministerial power" over his cabinet colleagues.
But that depends on the reshuffle going smoothly.
Some changes will be easy enough. Jacqui Smith, the home secretary, looks politically broken and no longer has the stomach to stay in the cabinet after her husband took the hit for the purchase of pornographic videos on expenses. She is probably reconciled to losing her marginal seat. Similarly, Geoff Hoon, the transport secretary, may fear he is expendable.
But axing Hazel Blears, the feisty communities secretary, would be more difficult. She feels aggrieved that she was singled out by Brown for behaving unacceptably over the designation of her second homes when she felt other cabinet ministers had acted similarly. If sacked, she could be a difficult backbench voice.
Even more, Brown is in a dilemma over Darling. He has been a loyal ally for a generation, and taken many hits on behalf of Brown over the last year. But there is dissatisfaction inside No 10 at the way in which Darling fails to attack the Tories convincingly on the economy. Ed Balls, the children's secretary, would be much more aggressive. If Balls returns to the Treasury, Brown would have the figure he most trusts alongside him in the vital 12 months before the election .
The counter-argument is that if Brown wants to fight the next election on the basis that the government steered the economy through the recession, someone will have to explain why it was necessary to remove the chancellor midway through. Equally, Brown will have to explain why Balls, Brown's chief economic adviser at the Treasury during the development of the credit bubble, is the man to take Britain back to economic growth.
At the moment, the chances of Brown surviving look strong. There is an inertia on the backbenches, and a belief bordering on faith that Brown has hit rock bottom, and will again show his extraordinary capacity to survive adversity. But it is going to be a week that will test Brown like never before.
He needs to seize the initiative quickly by resolving sharp differences of view within the cabinet on a full programme of constitutional reform.
He needs to navigate a fraught reshuffle, probably on Friday, that could see changes to the chancellorship and the Home Office, two of three great offices of state.
And he will have to manage a tense party as it goes through a drawn-out 72 hours of escalating panic in the face of crushing reverses in the county council elections on Thursday night and throughout Friday. That panic will reach a crescendo on Sunday night as the European election results trickle through, and Labour faces the prospect of coming fourth behind not just the Conservatives and the Liberal Democrats, but even Ukip.
As one minister said yesterday: "The actual level of the Labour vote will make a massive categorical difference. It depends if it is 15%, 25% and 35%. The actual level makes a world of difference to Gordon and the party's mood."
All the while, Brown will have to show a steadier hand in response to the daily drip of allegations coming out of the Daily Telegraph. He will not want a repeat of yesterday, when the chancellor, Alistair Darling, and Brown both put out statements insisting the Telegraph's latest allegations were wrong, only for the denial to be retracted within two hours.
But the prime minister reckons if he can chart these perilous waters intact, he will be in the clear and can set out what he describes as a national plan for Britain.
On expenses and the constitution, the cabinet will meet tomorrow to discuss a paper that offers a twin-track strategy. Harriet Harman, leader of the house, and Jack Straw, the justice secretary, will propose reforms to strengthen the role of backbenchers in relation to the executive, both through changes to parliament and through a constitutional renewal bill. It will cover the royal prerogative, war-making powers, the attorney general and a new code of conduct for MPs.
There will also be proposals to elect select committee chairs and remove the executive veto over private members' bills, and new powers for backbenchers to put issues to the vote in the Commons. It is likely that a draft House of Lords reform bill will also be published.
Plans are still being discussed for a citizens' summit, a constitutional convention, a panel of outside experts who would look at electoral reform, a bill of rights, and a written constitution.
Brown can probably resolve the differences in the cabinet over constitutional reform, even if there is frustration at the slowness of the government reaction.
The greater problem is the imminent reshuffle. But as one cabinet aide admitted yesterday: "Normally reshuffles are displays of prime ministerial power and patronage, but this could be the opposite. Some ministers could walk out or resign, and then the whole thing unravels."
The betting inside cabinet circles is that the reshuffle will take place on Friday or Saturday between the close of polls and the European election rout. Brown at that point will be on the brink of a disaster, but its full scale will not be known, thus destabilising any cabinet members thinking of mounting a coup.
Similarly, those on the backbenches wanting to oust Brown – the most likely course of events – will probably have to raise the standard of rebellion after the polls close on Thursday night, but will not know if the voters have provided them with the ammunition they need. The rebels will have to build momentum over the coming weekend – and all in the face of a display of "prime ministerial power" over his cabinet colleagues.
But that depends on the reshuffle going smoothly.
Some changes will be easy enough. Jacqui Smith, the home secretary, looks politically broken and no longer has the stomach to stay in the cabinet after her husband took the hit for the purchase of pornographic videos on expenses. She is probably reconciled to losing her marginal seat. Similarly, Geoff Hoon, the transport secretary, may fear he is expendable.
But axing Hazel Blears, the feisty communities secretary, would be more difficult. She feels aggrieved that she was singled out by Brown for behaving unacceptably over the designation of her second homes when she felt other cabinet ministers had acted similarly. If sacked, she could be a difficult backbench voice.
Even more, Brown is in a dilemma over Darling. He has been a loyal ally for a generation, and taken many hits on behalf of Brown over the last year. But there is dissatisfaction inside No 10 at the way in which Darling fails to attack the Tories convincingly on the economy. Ed Balls, the children's secretary, would be much more aggressive. If Balls returns to the Treasury, Brown would have the figure he most trusts alongside him in the vital 12 months before the election .
The counter-argument is that if Brown wants to fight the next election on the basis that the government steered the economy through the recession, someone will have to explain why it was necessary to remove the chancellor midway through. Equally, Brown will have to explain why Balls, Brown's chief economic adviser at the Treasury during the development of the credit bubble, is the man to take Britain back to economic growth.
At the moment, the chances of Brown surviving look strong. There is an inertia on the backbenches, and a belief bordering on faith that Brown has hit rock bottom, and will again show his extraordinary capacity to survive adversity. But it is going to be a week that will test Brown like never before.
Testicular cancer genetic advance
Researchers have for the first time found inherited genetic factors which raise the risk of testicular cancer.
A UK team found many testicular cancer patients shared common DNA variants on chromosomes five, six and 12 that healthy men did not have.
This finding was echoed in a separate US study in the same journal, Nature Genetics, which highlighted two of the same variations.
Both studies raise hopes of better treatments and diagnostic tests.
The UK team, from the Institute of Cancer Research, compared the profile of 730 testicular cancer patients with those of healthy men
They found men who inherit any of the three genetic variants have a raised risk of the disease.
Those who carry the variant most closely linked to the disease have two to three times the risk of the general population.
And inheriting all three variants raises the risk by up to fourfold.
However, it is still the case that only a small proportion of men who carry the higher risk variations will actually develop testicular cancer.
Researcher Dr Elizabeth Rapley said: "We have known for some time that men whose father, brothers or sons had testicular cancer are much more likely to get it themselves and we have been searching for this genetic link.
'More to be found'
"We have identified three genetic factors linked to an increased risk of testicular cancer. We believe there are more still to be found and we are working on identifying the rest."
Professor Mike Stratton, from the Wellcome Trust Sanger Institute, also worked on the study.
He said: "By combining these genetic risks with other known risk factors it may be possible in future to identify men who are at high risk of developing testicular cancer, particularly those who have a brother or father already affected by the disease.
"This may allow early detection or prevention.
All three genetic variants uncovered by the study were found near genes involved in the survival and development of cells which go on to form sperm.
The finding suggests that disrupting the work of these genes may be one mechanism by which cancer is able to grow.
More tests due
One of the variants was found in a gene called KITLG, which is also known to play a role in skin pigmentation.
The higher risk variant was found much more commonly in white men, and may explain why they seem to have a higher risk of testicular cancer.
Ed Yong, of the charity Cancer Research UK, said: "While more than 95% of testicular cancer patients are successfully treated, finding genes that increase the risk of this cancer is important.
"It tells us more about its basic biology and presents new opportunities to prevent, diagnose and treat the disease in those men most at risk - men aged under 50."
Previously, a small US study found a specific gene was more active in some types of testicular cancer cells, but did not establish whether it was inherited, or triggered only in cancer cells after the disease started to develop.
In the latest study, the researchers established the key genetic variations were found in every cell of the patients' bodies - clear evidence that they were definitely inherited.
The researchers are now looking for up to 3,000 men who have had testicular cancer to participate in the study to identify more genetic risk factors.
A UK team found many testicular cancer patients shared common DNA variants on chromosomes five, six and 12 that healthy men did not have.
This finding was echoed in a separate US study in the same journal, Nature Genetics, which highlighted two of the same variations.
Both studies raise hopes of better treatments and diagnostic tests.
The UK team, from the Institute of Cancer Research, compared the profile of 730 testicular cancer patients with those of healthy men
They found men who inherit any of the three genetic variants have a raised risk of the disease.
Those who carry the variant most closely linked to the disease have two to three times the risk of the general population.
And inheriting all three variants raises the risk by up to fourfold.
However, it is still the case that only a small proportion of men who carry the higher risk variations will actually develop testicular cancer.
Researcher Dr Elizabeth Rapley said: "We have known for some time that men whose father, brothers or sons had testicular cancer are much more likely to get it themselves and we have been searching for this genetic link.
'More to be found'
"We have identified three genetic factors linked to an increased risk of testicular cancer. We believe there are more still to be found and we are working on identifying the rest."
Professor Mike Stratton, from the Wellcome Trust Sanger Institute, also worked on the study.
He said: "By combining these genetic risks with other known risk factors it may be possible in future to identify men who are at high risk of developing testicular cancer, particularly those who have a brother or father already affected by the disease.
"This may allow early detection or prevention.
All three genetic variants uncovered by the study were found near genes involved in the survival and development of cells which go on to form sperm.
The finding suggests that disrupting the work of these genes may be one mechanism by which cancer is able to grow.
More tests due
One of the variants was found in a gene called KITLG, which is also known to play a role in skin pigmentation.
The higher risk variant was found much more commonly in white men, and may explain why they seem to have a higher risk of testicular cancer.
Ed Yong, of the charity Cancer Research UK, said: "While more than 95% of testicular cancer patients are successfully treated, finding genes that increase the risk of this cancer is important.
"It tells us more about its basic biology and presents new opportunities to prevent, diagnose and treat the disease in those men most at risk - men aged under 50."
Previously, a small US study found a specific gene was more active in some types of testicular cancer cells, but did not establish whether it was inherited, or triggered only in cancer cells after the disease started to develop.
In the latest study, the researchers established the key genetic variations were found in every cell of the patients' bodies - clear evidence that they were definitely inherited.
The researchers are now looking for up to 3,000 men who have had testicular cancer to participate in the study to identify more genetic risk factors.
Passenger nationalities revealed
Most of the passengers on board the Air France plane which has disappeared over the Atlantic were Brazilians and French nationals, airline officials said.
Air France confirmed 61 French and 58 Brazilian passengers were among the 216 passengers on board flight 447.
A list provided by Brazil's authorities showed 26 Germans were also on board as well as nine Chinese and nine Italians.
Six Swiss, five British, five Lebanese and four Hungarians were on the flight from Rio de Janeiro to Paris.
Those on board also included three Irish, three Norwegians, three Slovaks, two Americans two Moroccans, as well as individuals from Argentina, Austria, Belgium, Canada, Croatia, Demark, the Netherlands, Estonia, the Philippines, The Gambia, Iceland, Romania, Russia, South Africa, Sweden and Turkey.
No details have yet been given about the 12 crew.
Phone line
"Air France expresses its deepest sympathy to the relatives and friends of the passengers and crew who were on board this flight," the airline said in a statement on its website.
It said it was doing its utmost to support relatives and friends, and had set up counselling services at both the French and Brazilian airports.
A special phone line has been set up for relatives and friends.
In France, the number is 0800 800 812. In Brazil, the number is 0800 881 20 20 and for those in other countries the number is 0033 1 57 02 10 55.
The Michelin tyre company earlier said three of its executives were on the flight, including the president of its South American operations, Luiz Roberto Anastacio.
It is also believed that Erich Heine, an executive board member at the German steelmaker ThyssenKrupp, was on board.
He is also the chairman of the company's Brazilian unit - Companhia Siderurgica do Atlantico - a joint venture between ThyssenKrupp and a Brazilian mining company.
Air France confirmed 61 French and 58 Brazilian passengers were among the 216 passengers on board flight 447.
A list provided by Brazil's authorities showed 26 Germans were also on board as well as nine Chinese and nine Italians.
Six Swiss, five British, five Lebanese and four Hungarians were on the flight from Rio de Janeiro to Paris.
Those on board also included three Irish, three Norwegians, three Slovaks, two Americans two Moroccans, as well as individuals from Argentina, Austria, Belgium, Canada, Croatia, Demark, the Netherlands, Estonia, the Philippines, The Gambia, Iceland, Romania, Russia, South Africa, Sweden and Turkey.
No details have yet been given about the 12 crew.
Phone line
"Air France expresses its deepest sympathy to the relatives and friends of the passengers and crew who were on board this flight," the airline said in a statement on its website.
It said it was doing its utmost to support relatives and friends, and had set up counselling services at both the French and Brazilian airports.
A special phone line has been set up for relatives and friends.
In France, the number is 0800 800 812. In Brazil, the number is 0800 881 20 20 and for those in other countries the number is 0033 1 57 02 10 55.
The Michelin tyre company earlier said three of its executives were on the flight, including the president of its South American operations, Luiz Roberto Anastacio.
It is also believed that Erich Heine, an executive board member at the German steelmaker ThyssenKrupp, was on board.
He is also the chairman of the company's Brazilian unit - Companhia Siderurgica do Atlantico - a joint venture between ThyssenKrupp and a Brazilian mining company.
Atlantic searched for lost plane
France and Brazil are searching waters deep in the Atlantic for an airliner carrying 228 passengers and crew which disappeared in a storm on Monday.
France believes there is little hope of finding survivors from among those aboard the Air France Airbus, which was flying from Rio de Janeiro to Paris.
An automatic report of a short circuit was the last communication it put out before vanishing over the ocean.
French officials believe it may been disabled by a storm.
See a map of the plane's route
Staff at Charles de Gaulle and Rio's Jobim international airport have been trying to help relatives and friends of the 228 missing people.
Most of the missing people are Brazilian or French but they include a total of 32 nationalities. Five Britons and three Irish citizens are among them.
If no survivors are found, it will be the worst loss of life involving an Air France plane in the firm's 75-year history.
French and US sources have ruled out terrorism as the cause of the plane's loss.
US spy technology
Plane crews have narrowed their search to a zone of a few dozen nautical miles half-way between Brazil and west Africa, said Pierre-Henry Gourgeon, chief executive of Air France.
TIMELINE
Flight AF 447 left Rio at 1900 local time (2200 GMT) on Sunday
Airbus A330-200 carrying 216 passengers and at least 12 crew
Contact lost 0130 GMT
Missed scheduled landing at 1110 local time (0910 GMT) in Paris
Timeline of Flight AF 447
Air disasters timeline
Their work may be aided by the Airbus's Argos beacons, which will emit signals for several days, he added.
A French reconnaissance plane based in Dakar, Senegal, was due to reach the suspected crash area on Monday evening.
It was to be followed by two other French planes based in Dakar, and a naval vessel currently cruising in the Gulf of Guinea, several days' sailing away. Spain and Senegal also despatched planes to help in the search.
French President Nicolas Sarkozy confirmed that his government was approaching Washington for help.
An unnamed aide to French Defence Minister Herve Morin told AFP news agency earlier that France had contacted the Pentagon to "obtain access to its satellite observation capability and listening stations which might just be able to supply us with some clues".
Brazil has sent out seven air force planes and three naval ships to help in the search, far off the north-eastern Brazilian coast.
"We want to try to reach the last point where the aircraft made contact, which is about 1,200km [745 miles] north-east of Natal [in Brazil]," said Brazilian air force spokesman Col Jorge Amaral.
An unnamed air force spokesman told AFP news agency the search was focusing on a remote area close to where the last radio contact with the plane was recorded.
"This zone is on the line between the jurisdiction of Brazilian air control and that of Dakar in Senegal," he added.
Maria Celina Rodrigues, the Brazilian consul in Paris, accepted that the depth of the ocean would make it difficult for searchers.
"They are hoping they can find debris, pieces, lifejackets that eventually float, but that takes some time and they are coordinating with weather services and with officials overseeing maritime currents to try and narrow down the area," she told the Associated Press.
'She was on the plane'
The plane's automatic report was generated at 0214 GMT on Monday, about four hours after Flight AF 447 left Rio de Janeiro, and as it was heading through turbulence towards the west African coast
A succession of a dozen technical messages" showed that "several electrical systems had broken down" which caused a "totally unprecedented situation in the plane", said Mr Gourgeon.
"It is probable that it was shortly after these messages that the impact in the Atlantic came," he told reporters at Charles de Gaulle airport, where the airliner had been due to land.
Flight AF 447 was flying at an altitude of 10,670m (35,000ft) shortly before it went missing.
A meteorologist who spoke to the Associated Press said tropical thunderstorms in the Atlantic could tower up to 15,240m (50,000ft).
"At the altitude it was flying, it's possible that the Air France plane flew directly into the most charged part of the storm - the top," said Henry Margusity, senior meteorologist for AccuWeather.com.
French officials have stressed that the plane's captain was very experienced, clocking up more than 11,000 hours of flight.
French President Nicolas Sarkozy personally met relatives and friends of passengers at a crisis centre set up in Charles de Gaulle airport.
"I told them the truth," he said afterwards. "The prospects of finding survivors are very small."
At Rio's Jobim airport, shocked relatives were ushered into a closed lounge, away from the media and into the care of psychologists and doctors.
One woman, Vasti Ester van Sluijs, told AFP she had jumped into a taxi as soon as she heard news that the plane was missing.
"My daughter Adriana Francesca was on the plane," she said.
France believes there is little hope of finding survivors from among those aboard the Air France Airbus, which was flying from Rio de Janeiro to Paris.
An automatic report of a short circuit was the last communication it put out before vanishing over the ocean.
French officials believe it may been disabled by a storm.
See a map of the plane's route
Staff at Charles de Gaulle and Rio's Jobim international airport have been trying to help relatives and friends of the 228 missing people.
Most of the missing people are Brazilian or French but they include a total of 32 nationalities. Five Britons and three Irish citizens are among them.
If no survivors are found, it will be the worst loss of life involving an Air France plane in the firm's 75-year history.
French and US sources have ruled out terrorism as the cause of the plane's loss.
US spy technology
Plane crews have narrowed their search to a zone of a few dozen nautical miles half-way between Brazil and west Africa, said Pierre-Henry Gourgeon, chief executive of Air France.
TIMELINE
Flight AF 447 left Rio at 1900 local time (2200 GMT) on Sunday
Airbus A330-200 carrying 216 passengers and at least 12 crew
Contact lost 0130 GMT
Missed scheduled landing at 1110 local time (0910 GMT) in Paris
Timeline of Flight AF 447
Air disasters timeline
Their work may be aided by the Airbus's Argos beacons, which will emit signals for several days, he added.
A French reconnaissance plane based in Dakar, Senegal, was due to reach the suspected crash area on Monday evening.
It was to be followed by two other French planes based in Dakar, and a naval vessel currently cruising in the Gulf of Guinea, several days' sailing away. Spain and Senegal also despatched planes to help in the search.
French President Nicolas Sarkozy confirmed that his government was approaching Washington for help.
An unnamed aide to French Defence Minister Herve Morin told AFP news agency earlier that France had contacted the Pentagon to "obtain access to its satellite observation capability and listening stations which might just be able to supply us with some clues".
Brazil has sent out seven air force planes and three naval ships to help in the search, far off the north-eastern Brazilian coast.
"We want to try to reach the last point where the aircraft made contact, which is about 1,200km [745 miles] north-east of Natal [in Brazil]," said Brazilian air force spokesman Col Jorge Amaral.
An unnamed air force spokesman told AFP news agency the search was focusing on a remote area close to where the last radio contact with the plane was recorded.
"This zone is on the line between the jurisdiction of Brazilian air control and that of Dakar in Senegal," he added.
Maria Celina Rodrigues, the Brazilian consul in Paris, accepted that the depth of the ocean would make it difficult for searchers.
"They are hoping they can find debris, pieces, lifejackets that eventually float, but that takes some time and they are coordinating with weather services and with officials overseeing maritime currents to try and narrow down the area," she told the Associated Press.
'She was on the plane'
The plane's automatic report was generated at 0214 GMT on Monday, about four hours after Flight AF 447 left Rio de Janeiro, and as it was heading through turbulence towards the west African coast
A succession of a dozen technical messages" showed that "several electrical systems had broken down" which caused a "totally unprecedented situation in the plane", said Mr Gourgeon.
"It is probable that it was shortly after these messages that the impact in the Atlantic came," he told reporters at Charles de Gaulle airport, where the airliner had been due to land.
Flight AF 447 was flying at an altitude of 10,670m (35,000ft) shortly before it went missing.
A meteorologist who spoke to the Associated Press said tropical thunderstorms in the Atlantic could tower up to 15,240m (50,000ft).
"At the altitude it was flying, it's possible that the Air France plane flew directly into the most charged part of the storm - the top," said Henry Margusity, senior meteorologist for AccuWeather.com.
French officials have stressed that the plane's captain was very experienced, clocking up more than 11,000 hours of flight.
French President Nicolas Sarkozy personally met relatives and friends of passengers at a crisis centre set up in Charles de Gaulle airport.
"I told them the truth," he said afterwards. "The prospects of finding survivors are very small."
At Rio's Jobim airport, shocked relatives were ushered into a closed lounge, away from the media and into the care of psychologists and doctors.
One woman, Vasti Ester van Sluijs, told AFP she had jumped into a taxi as soon as she heard news that the plane was missing.
"My daughter Adriana Francesca was on the plane," she said.
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