NYT > Home Page: Foxconn Begins Bribery Investigation

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Foxconn Begins Bribery Investigation
Jan 13th 2013, 17:45

SHANGHAI — Foxconn Technology, the huge contract electronics manufacturer that makes the Apple iPhone and other popular products, said that it was investigating whether its employees had accepted bribes from supply-chain partners.

The company said last week that an internal investigation had uncovered possible wrongdoing in the supply chain and that those findings had been shared with the authorities in China.

The announcement is the latest setback for Foxconn, which produces a growing share of the world's smartphones, laptop computers and other electronics.

"We can confirm that we are working with law enforcement officials whom we brought in to work with our own internal audit team as part of an investigation into allegations against a number of Foxconn employees related to illegal payments from supply chain partners," Foxconn said in a statement e-mailed to the news media.

"Since the matter is under investigation, we are not able to comment further," Foxconn said. "However, we can say that the integrity of our employees is something we take very seriously and any employees found guilty of any illegal actions or violations of our company's Code of Conduct will be prosecuted to the fullest extent of the law. We are also carrying out a full review of our policies and practices to identify steps we can take to strengthen such measures to further mitigate against such actions."

Foxconn, which is based in Taiwan but has production facilities throughout China, did not offer details about the nature of the investigation or how the problem was uncovered. But last week, the Taiwan edition of Next Magazine reported that a Foxconn executive in the coastal Chinese city of Shenzhen had been detained by the police on bribery allegations.

In its report, Next magazine said an executive at Foxconn's operation in Shenzhen had been detained after being accused of asking for bribes from suppliers, and that two executives overseeing the company's production of Apple products had left their positions in recent months.

Foxconn is considered one of the world's most reliable suppliers of electronics. But the company's image has been tarnished in recent years by labor strikes, accusations of poor working and safety conditions, and a spate of worker suicides at some of its Chinese factories.

Apple has strongly defended its partner against allegations of poor working conditions and Foxconn executives have responded in the past year by upgrading its management, work standards and production facilities.

A version of this article appeared in print on January 14, 2013, in The International Herald Tribune.

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NYT > Home Page: As China's Economy Revives, So Do Fears of Inflation

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As China's Economy Revives, So Do Fears of Inflation
Jan 13th 2013, 15:21

GUANGZHOU — After a sharp economic slowdown through much of last year, China's economy is growing again — but not at its previous double-digit pace, and with signs that inflation might become a problem again.

Shops have been crowded this weekend, construction sites show renewed activity and factories are hiring as exports and domestic demand recover — trends all underlined by government data released over the past several days.

Further data to be released Friday and Saturday — including monthly, quarterly and annual figures for industrial production, fixed-asset investment, retail sales and overall economic output — are also expected to show that the Chinese economy, the world's second-largest, after that of the United States, is expanding once again.

Many shopkeepers are noticing an increase in retail sales. Among them is Liu Licai, a merchant in southern China who sells curtains and other household goods. Although some industries, like auto manufacturing, still suffer from bloated inventories, retailers like Ms. Liu are finding their shelves too empty and are starting to place more orders with suppliers, keeping factories busy.

"Business has gone up by more than 10 percent in the last several months," Ms. Liu said during a brief lull on an otherwise busy day.

Yet the pace of China's expansion may not be fast enough to do much for the rest of the world. China's imports are growing less than half as fast as its exports, making it hard for China to become the locomotive to pull the global economy out of its half-decade funk. And overall growth is not rebounding to previous levels.

Until last year, the Chinese government set as a goal 8 percent annual growth and the economy frequently delivered several percentage points more than that. Then last March, the government pared the goal to 7.5 percent, and actual growth seems likely to be little higher.

"The potential growth rate of the economy has come down," Stephen Green, a China economist in the Hong Kong offices of Standard Chartered, said Sunday. "You don't have to be in the double digits to get inflation."

Prices rose faster in December, according to government data released Friday. Consumer prices rose 2.5 percent from the level of a year earlier, their fastest pace since May.

Economists inside and outside China say the true rate of inflation is as much as double the official rate, because of methodological problems in the way China calculates inflation.

Mr. Green and other Western economists warned Friday and over the weekend that officially measured inflation at the consumer level could reach 5 percent by the fourth quarter and lead to an increase in interest rates by China's central bank.

Producer prices are still declining, but at a slower pace. They were down 1.9 percent in December from a year earlier, the smallest drop since last May.

Early in an economic recovery, rising prices tend to be a sign that the economy may not have much unused capacity that can be brought into production quickly. Yet Wen Senrong, the sales manager of the Flying Gift Bag store in Guangzhou, said that she was already seeing prices rise, with increases for rent, materials and labor.

"Our lease was renewed recently and our rent went up by a double-digit percentage — I feel like I am working for the landlord," she said.

Tang Chun, the owner of a factory that makes picture frames in Guangzhou, complained of rising costs for the full range of supplies that she buys, including aluminum, acrylic and glass. But department store buyers lack the confidence to accept higher prices, fearing that they will not be able to pass them on to retail customers, she said.

"Every possible cost is going up, including raw material costs and my rent, but I can't raise prices; it's all coming out of my profit margins," Ms. Tang said.

A version of this article appeared in print on January 14, 2013, in The International Herald Tribune.

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NYT > Home Page: Afghan Civilians Killed in Blast After Commando Raid

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Afghan Civilians Killed in Blast After Commando Raid
Jan 13th 2013, 14:02

KABUL, Afghanistan — An explosion in a mountain village in eastern Afghanistan on Sunday left at least seven civilians dead just after a joint American and Afghan military raid killed four Taliban fighters there, Afghan officials said.

Shaheedullah Shaheed, a spokesman for the governor of Wardak Province, said that seven civilians including one woman were killed, but villagers put the number of civilian deaths as high as 16.

  A spokesman for the international forces said an investigation was under way and that the explosion occurred after the Taliban fighters were killed. It was unclear what caused the explosion, but the villagers blamed the international forces.

  The raid took place in the Tangi Valley, a remote area of Wardak Province, a Taliban-held region that has been treacherous for Americans. In 2011 it was the site of an insurgent attack that brought down a Chinook helicopter killing all 30 Americans on board including 22 Navy Seals, the largest single loss of American troops in the 11-year war. Eight Afghan soldiers and a translator on the helicopter also died.

   In recent months, insurgents have taken a toll on the Afghan forces in the area. Thirty Afghan National Army soldiers have been killed in ambushes and explosions in the last 11 months and another 70 wounded, said Maj. Saifuddin Zaffari, the operational commander for Afghan National Army's Fourth Brigade's 3rd  Battalion, which has responsibility for  the Tangi region.

  In Sunday's raid, which occurred before dawn, a team of American and Afghan special operations forces detained a Taliban leader and then came under fire from Taliban gunmen who were hiding in a mosque. At least some of the Taliban were wearing suicide vests, which exploded during the fight, destroying the mosque, Afghan officials said.  

  "It was a joint ground operation in Hassan Khail village of Seyda Bad that killed four armed Taliban inside the mosque," Major Zaffari said.

  "Some civilians were trying to collect the bodies or to get their weapons and other ammunition when suddenly a huge explosion took place and resulted in civilian casualties but we don't know the exact numbers," he said.

  A spokesman for the international forces, Lt. Col. Hagen Messer, said that early reports from villagers that there had been an airstrike were incorrect and that it was a ground operation that killed the Taliban.

  "We also found a weapons and explosives cache and destroyed it before withdrawing," he said, adding "we are aware of reports that there may have been civilians killed."

  He added: "If there were civilians killed, it was after the operation."

  Mr. Shaheed, the governor's spokesman, said that some explosives might have remained in the mosque after the raid and that they could have exploded when the civilians rushed in.

  An elder in the area, Juma Khan, who has Taliban ties and was in the village on Sunday morning, said 16 villagers were killed and that their bodies were being prepared for burial. Of those, eight were elderly women and two were young boys from the same family.

  Zabiullah Mujahid, the Taliban spokesman for the north and east of Afghanistan, acknowledged that Taliban had been killed in the raid, but said that only two had lost their lives.  

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NYT > Home Page: Thousands of Russians Rally Against Adoption Ban

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Thousands of Russians Rally Against Adoption Ban
Jan 13th 2013, 10:28

MOSCOW – Thousands of Russians marched on Sunday in condemnation of the Russian Parliament's move to ban adoption of Russian children by American families, an event dubbed a "March Against Scoundrels," where participants chanted, "Take your hands off children," and carried posters showing the faces of lawmakers stamped with the word "Shame."

Mr. Putin approved the adoption ban in late December, as part of a broader law retaliating against the United States for the so-called Magnitsky Act, an effort to punish Russian officials accused of human rights violations.

Russian leaders have complained bitterly for years about light sentences handed down in cases where American adoptive parents abused or neglected children adopted from Russia, and named the ban after Dmitri Yakovlev, a toddler who died of heatstroke in Virginia in 2008 after his adoptive father left him in a parked car for nine hours.

But the decision has proven divisive in Russia, even within government circles. More than 650,000 children live in foster care or orphanages in Russia, of whom about 120,000 are eligible for adoption. Many children in orphanages are sick or disabled, and most have little hope of finding permanent homes.

"The authorities thought we would do what we usually do – swallow it and be quiet. They did not expect such a reaction," said Elena Rostova, 61, who attended the march. "But we had two weeks to consider what awaited these handicapped children."

A series of high-ranking officials openly expressed their disagreement before the ban was enacted, and figures from the art and entertainment world have recorded emotional messages of dissent and published them on the Internet. Opposition groups have hoped that outrage sparked by the adoption ban would reinvigorate a Moscow-based protest movement that has sagged in recent months, as the government began to prosecute and impose tough sentences on street activists.

A poll released in December by the Public Opinion Foundation showed that 56 percent of Russians approved of the adoption ban. A top official from United Russia, Andrei Isayev, last week described the Sunday protest as a "March of Child-Sellers," and tried to refocus attention on the Magnitsky Act, which he described as a "public, demonstrative humiliation of the Russian Federation."

"All the enemies of Russian sovereignty showed themselves the ardent supporters of American adoption," Mr. Isayev wrote on a party Web site.

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NYT > Home Page: Egyptian Court Grants Hosni Mubarak a New Trial

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Egyptian Court Grants Hosni Mubarak a New Trial
Jan 13th 2013, 11:07

CAIRO — The prosecution on former Egyptian leader Hosni Mubarak took another turn Sunday, when a court in Cairo granted his appeal of a life sentence and ordered a retrial on charges that he failed to prevent the killing of hundreds of protesters during the uprising that toppled his government nearly two years ago.

The ruling read by judge Ahmed Ali Abdel-Rahman during the brief court session also overturned the conviction of Mr. Mubarak's interior minister, Habib el-Adly, who is serving a life sentence after his conviction on the same charges. He will also be retried.

Mr. Mubarak, however, will not be freed; he is being held for investigation on other charges. The defendants were not present in the courtroom. Mr. Mubarak, 84, was reported last year to have been close to death, but the current state of his health is unknown.

His defense lawyers had argued that the former president did not know of the killings, but an Egyptian fact-finding mission has determined that he watched the uprising unfold on television at his palace.

The mission's report could hold both political opportunities and dangers for Mr. Mubarak's successor, Mohamed Morsi of the Muslim Brotherhood. A new trial would be popular, since many Egyptians were angered that Mr. Mubarak was convicted of failing to stop the killings, rather than ordering the crackdown.

But the report also implicates the military and security officials in the protesters' deaths. Any move to prosecute them could spark a backlash from the powerful police and others who still hold positions under Mr. Morsi's government.

The judge also granted the prosecution's request to overturn not-guilty verdicts on Mr. Mubarak, his two sons and an associate of the former president, Hussein Salem, on corruption charges. Mr. Salem was tried in absentia and remains at large to this day.

A retrial was also ordered for six of Mr. el-Adly's aides who were acquitted in the same trial. Five of them were found not guilty of involvement in the killing of the protesters, while one was acquitted of "gross negligence."

No date has been set for the start of the retrial of the 11 and it was not immediately clear if all of them would be brought before the same court as was the case in their first trial.

Mubarak's sons, one-time heir apparent Gamal and businessman Alaa, are in prison while on being tried for insider trading and using their influence to buy state land at a fraction of its market price.

Sunday's ruling came a day after prosecutors questioned Mr. Mubarak about $1 million worth of personal gifts he received from a state news organization over his last six years in office, the organization's Web site reported.

The investigation, conducted by the office assigned to investigate the misuse of public money, appeared to signal the determination of Mr. Morsi to bring new charges against Mr. Mubarak, the ousted former autocrat.

Mr. Mubarak was questioned about gifts, including gold pens, designer neckties, leather bags, shoes, gold jewelry and expensive watches that Al Ahram, which operates several newspapers and other media outlets, gave him from 2006 to 2011 as demonstrations of loyalty, its Web site reported. Al Ahram said Mr. Mubarak was facing possible new charges, including damaging public funds and improperly profiting from the gifts.

Al Ahram had been run by Mubarak loyalists while he was in office, but its management changed after Egypt's uprising.

He was questioned in a military hospital where he is serving a jail sentence for overseeing the police killing of nonviolent protesters.

Mr. Morsi campaigned on a pledge to bring new charges against Mr. Mubarak

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NYT > Home Page: Egyptian Court Orders Retrial for Mubarak

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Egyptian Court Orders Retrial for Mubarak
Jan 13th 2013, 08:58

CAIRO (AP) — A court granted Hosni Mubarak's appeal of his life sentence in a Sunday hearing, ordering a retrial of the ousted Egyptian president on charges that he failed to prevent the killing of hundreds of protesters during the uprising that toppled his regime nearly two years ago.

The ruling read out by judge Ahmed Ali Abdel-Rahman during a brief hearing also granted the appeal of Mubarak's security chief Habib el-Adly, who is also serving a life sentence after his conviction on the same charges. He too will be retried.

No date has been set for the start of their retrial.

The ruling came one day after a prosecutor placed a new detention order on Mubarak over gifts worth millions of Egyptian pounds (hundreds of thousands of US dollars) he and other regime officials allegedly received from Egypt's top newspaper as a show of loyalty while he was in power.

The public funds prosecutor ordered Mubarak held for 15 days pending the completion of the investigation. Mubarak, 84, was moved to a Cairo military hospital last month after slipping inside a prison bathroom and injuring himself.

Mubarak's two sons, one-time heir apparent Gamal and businessman Alaa, are in prison while on trial for alleged insider trading and using their influence to buy state land at a fraction of its market price. The two were acquitted of corruption charges in the same case as Mubarak, but judge Abdel-Rahman on Sunday said the court has granted the prosecution's appeal against their not-guilty verdict.

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NYT > Home Page: Eugene C. Patterson, Editor and Civil Rights Crusader, Dies at 89

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Eugene C. Patterson, Editor and Civil Rights Crusader, Dies at 89
Jan 13th 2013, 07:06

Eugene C. Patterson, the Pulitzer Prize-winning editor of The Atlanta Constitution during the civil rights conflicts of the 1960s and later the managing editor of The Washington Post and editor of The St. Petersburg Times in Florida, died on Saturday evening in St. Petersburg, where he lived. He was 89.

Eugene C. Patterson in 1984. Mr. Patterson edited The St. Petersburg Times in Florida.

Mr. Patterson in August 2012. He had been sick since last February.

Mr. Patterson, center, was a tank commander in World War II.

He died of complications from cancer and had been sick since last February, said George Rahdert, Mr. Patterson's lawyer and longtime friend.

In 41 years as a reporter, editor and news executive, Mr. Patterson, who won the 1967 Pulitzer for editorial columns, was one of America's most highly regarded journalists, a plain-talking, hard-driving competitor known for fairness and integrity as the nation confronted racial turmoil, divisions over the Vietnam War and new ethical challenges in journalism.

Mr. Patterson succeeded the legendary Ralph McGill as editor of The Constitution, and from 1960 to 1968 was a voice of conscience and progressive politics on the editorial page, writing thousands of columns, many of which addressed white Southerners directly, like letters from home, and cumulatively painted a portrait of the South during the civil rights struggle.

Raised on Georgia farm and a tank commander in World War II, he worked at small-town newspapers in Texas and Georgia as a young man, and although he moved up to wire service jobs in New York and London, had been steeped in the droll wit and down-home sociability of the South.

There were no simple solutions to the racial problems, and he offered none. Instead, he drew poignant scenes of suffering and loss to condemn violence and miscarriages of justice. And he explored themes of courage and questions of responsibility that went beyond mindless acts of racism to challenge a people with traditions of decency.

At the ruins of the 16th Street Baptist Church in Birmingham, Ala., where a bomb killed four girls on Sept. 15, 1963, he crafted his most famous column, "A Flower for the Graves." Walter Cronkite was so moved he asked Mr. Patterson to read it on "The CBS Evening News."

It began: "A Negro mother wept in the street Sunday morning in front of a Baptist Church in Birmingham. In her hand she held a shoe, one shoe, from the foot of her dead child. We hold that shoe with her. Every one of us in the white South holds that small shoe in his hand."

He also protested the Georgia legislature's refusal to seat Julian Bond, the black civil rights leader, for opposing American involvement in Vietnam and supporting draft resisters. His exclusion was overturned by the United States Supreme Court in 1966, and Mr. Bond served 20 years in the legislature.

Mr. Patterson joined The Washington Post in 1968 as managing editor, succeeding Benjamin C. Bradlee, who became executive editor. The two led the newsroom in June 1971 when The Post followed The New York Times in publishing the Pentagon Papers, the secret study of American duplicity in Indochina. Nixon administration challenges to both publications were struck down in a historic Supreme Court ruling.

Later in 1971, Mr. Patterson left The Post and taught for a year at Duke University. In 1972, he became editor of The St. Petersburg Times (now known as The Tampa Bay Times) and two sister publications, The Evening Independent in St. Petersburg and Congressional Quarterly, covering the government in Washington. After the death of the publications' owner, Nelson Poynter, in 1978, he became the company's chairman until his own retirement in 1988.

Under Mr. Patterson, The Times's liberal traditions flourished on Florida's largely conservative west coast, with foreign and national news reports and strong investigative articles. In 1976, he insisted that news of his own arrest on a drunken-driving charge appear on Page 1 to show that the paper could be as hard on its own as it was on others.

Eugene Corbett Patterson was born on Oct. 15, 1923, in Adel, Ga., to William C. and Annabel Corbett Patterson. He grew up on a farm, did office work for The Adel News, edited a campus newspaper at North Georgia College at Dahlonega and majored in journalism at the University of Georgia at Athens, graduating in 1943.

He joined the Army in World War II, became a tank platoon commander in Gen. George S. Patton's Third Army, and fought in the Battle of the Bulge. After Germany's defeat, he sailed for the Pacific, but learned on the way of Japan's surrender. He became an Army pilot after the war, but left the service in 1947 to go into journalism.

In 1950, he married the former Mary Sue Carter. She died in 1999. Mr. Patterson is survived by their daughter, Mary Patterson Fausch, and three grandchildren.

Mr. Patterson was a reporter for The Temple Daily Telegram in Texas and The Macon Telegraph in Georgia in 1947 and 1948 and worked for the United Press in Atlanta in 1948, in New York in 1949 and in London as bureau chief from 1953 to 1956. He then became vice president and executive editor of The Atlanta Journal and The Constitution, both owned by Cox Enterprises, and four years later was named editor of The Constitution.

From 1964 to 1968, Mr. Patterson was vice chairman of the United States Commission on Civil Rights, an appointee of President Lyndon B. Johnson. He was president of the American Society of Newspaper Editors in 1977 and 1978, and served from 1974 to 1985 on Columbia's Pulitzer Prize Board, selecting winners of the prestigious awards in journalism and the arts.

In 1981, Mr. Patterson was one of the few board members who opposed a feature-writing Pulitzer for Janet Cooke of The Washington Post for an article about an 8-year-old heroin addict, which proved to be a hoax. He objected because the article was about an anonymous boy and relied on unnamed sources. The Pulitzer was returned, Ms. Cooke resigned and the episode was a profound embarrassment for The Post.

Mr. Patterson also scoffed at journalists posing as someone else to get a story. "If this becomes the standard for news coverage in America, then we have set a standard that young reporters are going to follow, and misrepresenting oneself, misleading, camouflaging one's identity, will become a way of life," he said in a discussion on the CBS News program "60 Minutes."

In a newsroom with his sleeves rolled up or at an awards ceremony in a tuxedo, he carried himself with military bearing, a stocky, barrel-chested man with the rolling gait of Jimmy Cagney, whom he resembled in style and grit. Colleagues said he seemed always to be on the verge of a smile or a good idea.

"Every day you had to have an idea," he said in 2003 of his column-writing years. "You kept your pockets stuffed with quotations and ideas and turns of thought, famous sayings that you could credit and work into your columns. At laundry time, you had an awful lot of chewed up paper in your pockets."

In 2002, a collection of his columns for The Constitution was published as a book, "The Changing South of Gene Patterson: Journalism and Civil Rights, 1960-1968." He was the author of "Patton's Unsung Armor of the Ardennes: The Tenth Armored Division's Secret Dash to Bastogne" (2008). A chair in journalism was established in his name at Duke, where he was a trustee from 1988 to 1994.

In a 2008 interview with Florida Trend magazine, he remembered a day when his daughter, Mary, then 9, called him at The Constitution. She was sobbing. Someone had shot her dog in the backyard. He hurried home. "I kept telling my daughter, 'Look, we don't know who shot her,' " he recalled. "But my daughter said she knew — that it was 'somebody who doesn't like what you've been writing in the paper.' "

"I tried to explain to her," he said. "It was tough for a child."

But there was no turning back. "You had to address the issue of race relations because the civil rights marchers were in the streets, the sit-ins were going on, the riots, the fire hoses, the police dogs, the killings," he said. "This had to be addressed and not simply by reporting it, but by editors who would stand up and say what we had been doing was wrong, and we had to change."

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