In Asia's Tuesday papers

A summary of political, economic, trade, business and product news affecting the chemical and related industries.

 

 

US President George W Bush said on Monday (20 June) he wanted the struggling European Union (EU) to be a "strong" partner, as he and EU leaders affirmed a common approach to Iran, North Korea and Lebanon. The US continues to support a strong EU as a partner in spreading freedom, democracy, security and prosperity throughout the world, he said after hosting the annual US-EU summit at the White House. Bush spoke at a joint public appearance after meeting with Luxembourg Prime Minister Jean-Claude Juncker, the current EU president, European Commission president Jose Manuel Barroso and EU foreign policy chief Javier Solana. The talks came as the EU reeled from two crises: The failure to agree on a long-term budget and the decision to postpone plans to adopt a new constitution after French and Dutch voters crushingly rejected the charter.

Hindustan Times, India (online edition)

North Korea to give up missiles if US sets up ties

North Korea is willing to abolish all its mid- and long-range missiles if the US establishes a formal diplomatic relationship with the communist state, South Korean Unification Minister Chung Dong-young said on Monday (20 June). Chung was told that at a surprise meeting he held on Friday (17 June) with North Korean leader Kim Jong-il in Pyongyang, where Kim also said his country could rejoin the six-party denuclearisation talks as early as next month if the US respects North Korea as a partner. Chung was in Pyongyang leading a government and civic delegation to attend celebrations marking the fifth anniversary of the historic inter-Korean summit between Kim Jong-il and then South Korean President Kim Dae-jung. The North Korea's highest-level contact with South Korea in three years brightened the prospects of ending the 32-month old nuclear standoff, as Kim said he does not dislike US President George Bush and regards him as someone who would be "interesting to talk to."

 

Korea Herald, South Korea (online edition)

 

China Daily, China (online edition)

 

 

South Korean President Roh Moo-hyun and Japanese Prime Minister Junichiro Koizumi laid out their positions on Japan's history reinterpretation but failed to narrow differences in summit talks in Seoul on Monday (20 June) against a background of noisy anti-Japanese rallies protesting Koizumi's visit.  The two leaders, whose meeting went ahead only after reluctant and time-consuming arrangements by both governments over the past several weeks, met for two hours at Cheong Wa Dae's Sang Choon Jae house from 3pm and discussed contentious history issues and the North Korean nuclear standoff. The meeting -- the seventh between Roh and Koizumi and the third round of the shuttle summitry eagerly agreed by them last year -- took place at a time of severe hostility in South Korea against several controversial Japanese moves, including its approval in April of textbooks that critics claim rationalise Japan's wartime atrocities. Roh and Koizumi reaffirmed their governments' agreement to launch a second-phase joint committee on history and added that a special sub-committee on textbooks will be established. South Korea has been demanding the joint committee officially take up the controversial textbooks as its agenda.

 

Korea Herald, South Korea (online edition)

 

Nihon Keizai Shimbun, Japan (online edition)

 

China Daily, China (online edition)

China, Jamaica ink pacts during meetings in Beijing

China rolled out the red carpet for visiting Jamaican Prime Minister Percival J Patterson in Beijing on Monday (20 June). Prime Minister Wen Jiabao and Jamaica's Patterson witnessed the signing of four agreements, focusing on education, minerals and economic and technological co-operation.  Wen said China's and Jamaica's decision in February to establish a friendly partnership of common development showed the commitment of both sides to strengthening bilateral relations, laying a solid foundation for future development. He said Jamaica has become China's most important trade partner in the English-speaking Caribbean area and has created favourable conditions for bilateral trade by recognising China's full market economy status. Patterson reiterated Jamaica's adherence to the one-China policy, saying his country is willing to reinforce co-operation with China in tourism, education and technology and is expecting to coordinate with China in international affairs. Under agreements signed in early June, Chinese tourist groups will be able to travel freely to Jamaica from 15 July.

China Daily, China (online edition)

Poland has conferred the Commander Cross, its highest civilian award, on Indian businessman Vijay Kalantri for his contributions to promoting trade and commerce between the two countries. Kalantri, a 56-year-old Mumbai-based businessman, is chairman of Balaji Ind-Exim. He is also president of the Indo-Polish Chamber of Commerce and Industry and the All India Association of Industries. He was the prime mover behind the exhibition India Initiative 2005 that concluded in Warsaw on Sunday (19 June). Kalantri said Belka wants to see new heights in business between the two countries and expects that trade will cross $1bn (Euro810m) by 2010 from $400m at present. Belka assured that Indian businessmen would be given multi-journey visas to Poland in the near future. Currently they are given only single-entry visas that restrict their mobility.

Hindustan Times, India (online edition)

Indian cabinet OKs trade deal with S'pore 

India's cabinet gave the go-ahead on Monday (20 June) for a landmark trade deal with Singapore that is expected to accelerate the flow of foreign direct investment into the South Asian nation. It is India's first comprehensive economic cooperation agreement with any country and will provide numerous direct and fringe benefits, Indian Trade Minister Kamal Nath told a press conference. The Comprehensive Economic Partnership Agreement encompasses accords on trade of goods and services, investment protection and avoidance of double taxation. The cabinet clearance paves the way for Singapore Prime Minister Lee Hsien Loong to sign the accord on 29 June when he visits India. Singapore will offer all imports from India at zero duty which is expected to help India develop a supply chain to the huge markets of Asia as Singapore is a known trading hub, Nath said. For its part, India will cut tariffs on imports from Singapore by 80% after the pact is signed, gradually reducing them to zero over a five-year period.

Channel News Asia, Singapore (online edition)

Business Times, Singapore (online edition)

Hindustan Times, India (online edition)

Malaysia pushes economic focus

Muslim nations must unleash their potential by focusing on economic development and building trade links with each other, Malaysia's prime minister told an international Islamic trade forum on Monday (20 June).  Prime Minister Abdullah Ahmad Badawi, hailed a new preferential trading system to be signed by 14 of the 57-nation Organisation of the Islamic Conference (OIC) members this year as an initiative to kick-start the process. It is an important first step towards the larger goal of greater economic integration among OIC countries, he said in an opening address to the forum.  It is economic strength which can give the OIC greater clout and secure a more influential voice in international affairs, he said.  Abdullah said it was up to member countries to ensure that the preferential trading system was successfully implemented. Malaysia's International Trade and Industry Minister Rafidah Aziz said on the sidelines that the balance of the 43 countries will be brought into the preferential trading system once it is in place, probably by this year end.

Business Day, Thailand (online edition)

New Straits Times, Malaysia (online edition)

Business Times, Singapore (online edition)

Philippine budget back in deficit, may improve

The Philippines' budget returned to a deficit in May after a rare surplus in April, the government said on Monday (20 June), but analysts said there were signs of improvement on the back of a campaign to stamp out tax evasion. The government reported a budget deficit of Peso7.6bn  ($137m/Euro112m) in May, down from Peso12.7bn recorded in the same month last year. In the first five months of 2005, the budget deficit was Peso67.8bn, 12.4% lower than the Peso77.4bn deficit in the same period of 2004 and only 70% of the government's target for the first six months. Analysts said that showed the government was on course to meet its deficit target of Peso180bn, or 3.4% of gross domestic product, for the full year.

Business Day, Thailand (online edition)

Manila Times, Philippines (online edition)

Bush to press Viet PM on human rights

US President George W Bush will press Vietnamese Prime Minister Phan Van Khai to improve his country's human rights record, the White House said on the eve of their landmark talks. When Bush welcomes Khai on Tuesday, Vietnamese-American groups will hold demonstrations in front of the White House to protest alleged political and religious persecution in communist-ruled Vietnam, organisers said. In Seattle, the first stop of Khai's week long US trip, hundreds of Vietnamese-Americans demonstrated in front of his hotel on Sunday (19 June). He is the first Vietnamese government leader to visit the US since the end of the Vietnam war and Khai's visit culminates a series of reconciliation moves since the end of the bloody Vietnam War 30 years ago. As Khai arrived in Washington on Monday from Seattle, Congress held a hearing on alleged human rights violations in Vietnam. Bush has been beseiged by letters from lawmakers, and human rights and media organisations, highlighting the need for democratic reforms and respect for human rights in Vietnam.

Channel News Asia, Singapore (online edition)

Straits Times, Singapore (online edition)

Environment & Health

China to stop misuse of antiviral on poultry

The Ministry of Agriculture (MoA) plans to dispatch inspection teams nationwide to stop the antiviral drug amantadine "meant for humans" being used on poultry. An MoA official spoke out after reports, denied by the government, that some farmers are being encouraged to illegally use amantadine on their chickens to curb the spread of bird flu. Researchers fear using the drug on animals and humans could lead to drug resistance. Drug-resistant forms of H5N1, a bird flu strain, have already been found in Thailand and Vietnam, according to reports. Xu refuted a report by the Washington Post on Saturday (18 June) that the China had encouraged farmers to use amantadine on their chickens to prevent bird flu. Xu said the report was groundless. The World Health Organization and the United Nations Food and Agriculture Organization have both expressed concerns over the issue. China's MoA said the government would supply farmers with cheaper and more effective vaccines to replace the use of amantadine by some farmers.

China Daily, China (online edition)

Oil & Gas

China looking west for energy supply

A State Council leader has called for wider exploration of the potentially oil-rich Xinjiang to make the region the country's strategic oil and gas base. During a recent visit to the Xinjiang Uygur Autonomous Region, Vice-Prime Minister Zeng Peiyan said efforts will be focused on the Tarim, Junggar, and Turpan-Hami basins. Zeng also said oil companies and local governments should look into price reforms in the energy sector, the levying of a fuel tax and an increase in the resources tax. The basins, equivalent in size to France and Britain, sit on 30% of China's total oil and 34% of its natural gas reserves. But more than 80% of the areas remains untapped. Zeng visited major oil and gas fields in the Tarim Basin late last week after completing a tour of Russia, Oman, the United Arab Emirates, and Qatar. Xinjiang pumped 22m tons of oil last year, or 12% of the nation's total.

China Daily, China (online edition)

Thaksin may limit gasoline imports

Thailand's Prime Minister Thaksin Shinawatra said the government may limit the imports of gasoline and implement measures to reduce energy consumption if the existing energy-saving campaign is not effective. Thaksin admitted that the energy-saving campaign, which started on 1 June, has not been effective as the public is not yet fully aware of the problems. He added the public might also think the government can afford the increasing gasoline price. The enforcement measures might be announced in the next three months, Thaksin said. He also said that if the new measures were announced, it might not affect the production of the industrial sector as the objective of the new measure is only to reduce energy consumption. The Energy Policy and Planning Office earlier announced that the government is to gradually readjust the gasoline subsidy this month. The substantial increase in the gasoline price in the world market forced the gasoline fund to shoulder the subsidies for the gasoline prices in the local market.

Business Day, Thailand (online edition)

Company News

Foreigners up stakes in Korean cos

Foreign funds have expanded equity investments in major Korean companies to influence management, prompting local shareholders to make aggressive stock purchases in their own companies, industry data showed on Monday (20 June). The Korea Exchange said that large private equity funds from Singapore, the US and Switzerland and elsewhere have recently increased their stakes in local companies largely in order to take part in managerial decisions. In the latest case, Singapore-based Templeton Asset Management said on Friday (17 June) that it has increased shares in several companies including CJ, Samsung Fine Chemicals, Hite Brewery, LG Household & Healthcare and LG Petrochemical. Foreigners accounted for nearly 42% of the nation's total market capitalisation in 2004, with overseas investors holding majority shares at major companies including Samsung Electronics, Korea's largest company by market value,

Korea Herald, South Korea (online edition)

S'pore shipyard gets $780m contract

Singapore's Jurong Shipyard has won a contract worth $780m (Euro639m) to build two ultra-deepwater semi-submersible drilling rigs. The customer is Seatankers, a company based in Cyprus. The rigs will be able to operate in challenging deepwater areas and at depths of up to 10 000 feet. These include the Gulf of Mexico, offshore Brazil and West Africa. Construction of the first semi-submersible rig will begin immediately. Delivery is scheduled for Q1 of 2008. The second semi-submersible rig, on a three-month option, takes effect in October with delivery scheduled in the H1 of 2009.

Channel News Asia, Singapore (online edition)

Business Times, Singapore (online edition)

(Some stories may not appear in all editions of the cited news media.)