China newspaper publishes after deal ends standoff

GUANGZHOU, China (AP) — An influential weekly newspaper whose staff rebelled to protest heavy-handed censorship by China's government officials published as normal Thursday after a compromise that called for relaxing some intrusive controls but left lingering ill-will among some reporters and editors.
The latest edition of the Southern Weekly bore no hints of the dispute that erupted last week over a New Year's editorial that was rewritten to praise the Communist Party and that drove some staff to stop work in protest. Still fuming, some editors and reporters tried late Wednesday to insert a carefully-worded commentary praising the newspaper as a tribune of reform, but were rebuffed by management, an editor said.
The editor, who asked not to be named because he had been repeatedly warned not to talk to foreign media, described the mood among editorial staff as indignant. He predicted that some would resign, either voluntarily out of anger or forced out by management.
Academics spoke of a coming reckoning by authorities to reassert control at the Southern Weekly and any other media that might take encouragement.
"Overall, the authorities do not want this situation to spread," Peng Peng, a political science researcher at the Guangdong province Social Sciences Academy, told reporters.
The weeklong fracas at the Southern Weekly evolved quickly from a row over censorship at one newspaper to a call for free speech and political reform across China, handing an unexpected test to the party leadership headed by Xi Jinping just two months into office.
Hopes that the dispute would strike a blow against censorship initially ran high. Internet microblogs crackled with messages of support. Liberal-minded academics wrote open letters. And hundreds of people this week gathered outside the newspaper's offices off a busy street in the southern commercial center of Guangzhou, waving signs that called for freedom of expression.
But expectations for change began fizzling Wednesday as a compromise to end the dispute took shape. Under the deal, according to the editor and another staff member, editors and reporters would not be punished for protesting, and propaganda officials would no longer directly censor content prior to publication, though directives, self-censorship, threats of dismissal and many other longstanding measures would stay in place to ensure obedience to the party.
The outpouring challenged one of the key levers of party rule — its right to control the media and dictate content — and officials pushed back this week to reassert authority.
"This crisis rings alarm bells for journalists and liberal intellectuals. The new government might kick-start economic reforms in certain areas, to ensure continued growth. But swift political reforms are not on the top leaders' agenda, as they are still calculating resistance from conservative blocs," Zhang Hong, deputy editor-in-chief of the business newspaper Economic Observer, wrote in a commentary Thursday in Hong Kong's South China Morning Post.
In a further sign of tightening, police attempted Thursday to prevent more of the protests outside the compound housing the Southern Weekly and its parent company, the Nanfang Media Group, in Guangzhou, a city long at the forefront of reforms. About 30 police officers guarded the area and ordered people to move on, chasing away any who wouldn't and detaining at least one local university student who came with a group of friends.
The standoff at the Southern Weekly echoed through the newsroom of the Beijing News, which is co-owned by Nanfang Media and has a reputation for aggressive reporting. Editors at the newspaper all week defied an order to run a commentary that many other newspapers carried that blamed resistance to censorship on meddling foreign forces, but a propaganda official visited the newspaper late Tuesday and forced publication of the commentary.
The Southern Weekly dispute was touched off after provincial propaganda chief Tuo Zhen rewrote the New Year's editorial, which called for better constitutional government, to insert heavy praise for the party. The revised editorial was not submitted for review by editors before publication, violating an unwritten practice in censorship and enraging the staff, which saw it as an attack.
The Southern Weekly has been a standard-bearer for hard-edged reporting and liberal commentary since the 1990s. Throughout, senior party politicians and propaganda functionaries have repeatedly attempted to rein in the newspaper, cashiering editors and reporters who breach often unstated limits.
The special commentary that reporters and editors tried late Wednesday to insert into Thursday's edition was meant to extol that legacy, said the editor. Many other editors and reporters declined comment or refused to answer phone calls and emails. Dai Zhiyong, the columnist who drafted the original New Year's editorial, also declined comment, but posted to his Twitter-like microblog account an essay he had written three years ago; its title: "Before becoming free, one must suffer."
Even if censorship largely remains intact, the standoff has showed the breadth of support independent-minded media like Southern Weekly have among many Chinese, who are wired to the Internet and increasingly sophisticated in their expectations of the government. Peng, the politics scholar, said the confrontation showed that the party's censorship system needs to change, though the pace may not be as quick as many in the media would like.
"To put it simply, the media cannot go beyond the existing system to pursue radical reform, but the management method also needs to change," said Peng.
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US missiles kill 5 suspected militants in Pakistan

PESHAWAR, Pakistan (AP) — Pakistan intelligence officials say U.S. drone-fired missiles have hit a house in the country's northwest tribal region, killing five suspected militants.
The officials say the attack occurred Thursday in a village near Mir Ali, one of the main towns in the North Waziristan tribal area, the main sanctuary for Taliban and al-Qaida militants in Pakistan.
The officials spoke on condition of anonymity because they were not authorized to talk to the media.
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Report: Armstrong weighs doping admission

AUSTIN, Texas - The New York Times reported Friday that Lance Armstrong, who has strongly denied the doping charges that led to him being stripped of his seven Tour de France titles, has told associates he is considering admitting to the use of performance-enhancing drugs.
The report cited anonymous sources and said Armstrong was considering a confession to help restore his athletic career in triathlons and running events at age 41. Armstrong was been banned for life from cycling and cannot compete in athletic events sanctioned by the U.S. Anti-Doping Agency and the World Anti-Doping Agency.
Yet Armstrong attorney Tim Herman denied that Armstrong has reached out to USADA chief executive Travis Tygart and David Howman, director general of the World Anti-Doping Agency.
Herman told The Associated Press he had no knowledge of Armstrong considering a confession and said: "When, and if, Lance has something to say, there won't be any secret about it."
Armstrong, who recovered from testicular cancer that had spread to his lungs and brain, won the Tour de France from 1999-2005. Although he has vehemently denied doping, Armstrong's athletic career crumbled under the weight of a massive report by USADA detailing allegations of drug use by Armstrong and his teammates on his U.S. Postal Service teams.
The report caused Armstrong to lose most of his personal corporate sponsors and he recently stepped down from the board of Livestrong, the cancer-fighting charity he founded in 1997.
Armstrong is facing other legal hurdles.
The U.S. Department of Justice is considering whether to join a federal whistle-blower lawsuit filed by former Armstrong teammate Floyd Landis. A Dallas-based promotions company has also said it wants to recover several million dollars paid to Armstrong in bonuses for winning the Tour de France. The British newspaper The Sunday Times has sued Armstrong to recover $500,000 paid to him to settle a libel lawsuit.
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If Lance Armstrong is coming clean, he owes hundreds of apologies to those he bullied

So now, according to the New York Times, Lance Armstrong is considering coming clean and admitting the entire thing was a lie; that he did indeed use performance-enhancing drugs and blood transfusions to win all those Tour de France titles.
And this would be news to … um, anyone?
Certainly not the anti-doping officials and cycling administrators who the Times reports Armstrong has been working with to set up a potential deal that might allow him to return to competitive athletics, mostly ironman triathlons.Lance Armstrong was stripped of his seven Tour de France titles last year. (AP)
Armstrong's lawyer would only cryptically tell the Times, "I do not know about [coming clean]. I suppose anything is possible, for sure."
Here's guessing this is less about the thrill of competition and more about Armstrong realizing that fewer and fewer people are paying attention to him, let alone believing his fable. Here's guessing he has come to the stark realization that there isn't any other way out of that sink hole. It's better to be a humble hypocrite than a nearly forgotten joke.
It's been painfully obvious that Lance Armstrong cheated for years and years now. There have been mountains of evidence, countless media investigations, a parade of former friends and teammates turned accusers and finally a USADA-produced 1,000 page report that is astounding in its detail.
And there's been, perhaps most damning of all, the fact that just about every other cyclist of note during Armstrong's generation was busted for doping. So to believe the Armstrong fairy tale is to believe that in a sport full of healthy cheats, it was the clean cancer survivor that was somehow the best.
It never made any sense.
There were plenty of people out there, myself included, who simply didn't care. Cycling is a dirty sport. He still had to beat the others. It wasn't clean, but it may have been a relatively even playing field. Besides, what he did off the bike was more important. He inspired so many people across the cancer wards of the world. He raised spirits. He raised money. He raised awareness.
[Related: Olympic cyclist killed in biking accident]
Of all the atrocities to get angry about, a guy who was less than honest so he could ride his bike real fast around France ranks pretty low.
The thing is, climbing up from the depths of chemotherapy to the point you could get back in a peloton racing up the Alps is a heck of a story. But Armstrong could never leave it at that, and that's why this has to be more than just an admission, it needs to be an apology. Hundreds of them, actually.
They say it's never too late for the truth, but this case may test that theory.
Throughout Armstrong's career, he hasn't just denied he doped, he's tried to destroy anyone who suggested otherwise. He and his henchmen have bullied, intimidated and threatened. They attacked reputations and fought dirty in ways that belied what he was supposed to be about. Everyone was just a jealous liar. Careers were ruined.
[Related: British paper sues Lance Armstrong]
There was ugliness like the time Betsy Andreu, wife of longtime Armstrong teammate Frankie Andreu, got a voicemail declaring, "I hope somebody breaks a baseball bat over your head." That was after she'd already been dragged through the mud and declared a vindictive nut.
"A playground bully,'' one of Armstrong's old teammates, Jonathan Vaughters, once described him.
So now it's all forgiven? Now he just wants to say, OK, I did it?
Maybe this is a redemption story if he acted differently in the past. Maybe it would be easier to understand that this was a lie that got so big, with so many people counting on it to be true, that he couldn't get out from under it. Maybe this would be easy.
Lance Armstrong didn't hold back in going after his accusers. (AP)But after all the damage was done, after all the times his lawyers napalmed someone's reputation, after all the times Armstrong took the people closest to him, ones who understood the truth and tried to bury them, this can't be just admitting to something that any thinking person long ago was fairly certain he did.
Only his sizeable ego could think that's enough.
No, if this is a new day for Lance, then it needs to be about someone other than just Lance.
This needs to be about making amends, publicly and painfully, one by one, name by name, to all the people he and his machine tried to run over, all the people whose crime was merely wanting to acknowledge the truth long before the schoolyard bully ran so short of friends he too finally realized it was his only option.

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Report: Lance Armstrong weighs doping admission

AUSTIN, Texas (AP) — The New York Times reported Friday that Lance Armstrong, who has strongly denied the doping charges that led to him being stripped of his seven Tour de France titles, has told associates he is considering admitting to the use of performance-enhancing drugs.
The report cited anonymous sources and said Armstrong was considering a confession to help restore his athletic career in triathlons and running events at age 41. Armstrong was been banned for life from cycling and cannot compete in athletic events sanctioned by the U.S. Anti-Doping Agency and the World Anti-Doping Agency.
Yet Armstrong attorney Tim Herman denied that Armstrong has reached out to USADA chief executive Travis Tygart and David Howman, director general of the World Anti-Doping Agency.
Herman told The Associated Press he had no knowledge of Armstrong considering a confession and said: "When, and if, Lance has something to say, there won't be any secret about it."
Armstrong, who recovered from testicular cancer that had spread to his lungs and brain, won the Tour de France from 1999-2005. Although he has vehemently denied doping, Armstrong's athletic career crumbled under the weight of a massive report by USADA detailing allegations of drug use by Armstrong and his teammates on his U.S. Postal Service teams.
The report caused Armstrong to lose most of his personal corporate sponsors and he recently stepped down from the board of Livestrong, the cancer-fighting charity he founded in 1997.
Armstrong is facing other legal hurdles.
The U.S. Department of Justice is considering whether to join a federal whistle-blower lawsuit filed by former Armstrong teammate Floyd Landis. A Dallas-based promotions company has also said it wants to recover several million dollars paid to Armstrong in bonuses for winning the Tour de France. The British newspaper The Sunday Times has sued Armstrong to recover $500,000 paid to him to settle a libel lawsuit.
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Pennies over patriotism? Stars move to tax havens

 France's Socialist government is introducing a 75-percent income tax on those earning over €1 million ($1.3 million), leading some of the country's rich and famous to set up residency in less fiscally demanding countries.
Here's a look at some big names in France and elsewhere whose changes of address over the years have meant lighter taxes.
DEPARTING DEPARDIEU
The French prime minister has accused actor Gerard Depardieu of being "pathetic" and "unpatriotic," saying he set up residence in a small village just across the border in neighboring Belgium to avoid paying taxes in France.
The office of the mayor in Depardieu's new haunts at Nechin, also known as the "millionaire's village" for its appeal to high-earning Frenchmen, said that for people with high income, like Depardieu, the Belgian tax system, capped at 50 percent, is more attractive.
Depardieu, who has played in more than 100 films, including "Green Card" and "Cyrano de Bergerac," has not commented publicly on the matter.
BEATLE TAX
In 2005, the Beatles' Ringo Starr took up residency in Monaco, where he gets to keep a higher percentage of royalties than he would in Britain or Los Angeles. France's tiny neighbor Monaco, with zero percent income tax for most people, has obvious appeal for the 72-year-old drummer and his estimated $240 million fortune.
The Beatles' resentment of high taxes goes back to their 1960s song "Taxman." George Harrison penned it in protest of the British government's 95 percent supertax on the rich, evoked by the lyrics: "There's one for you, nineteen for me."
Harrison reportedly said later, "'Taxman' was when I first realized that even though we had started earning money, we were actually giving most of it away in taxes."
LICENSE TO DODGE?
Former "James Bond" star Sean Connery left the U.K. in the 1970s, reportedly for tax exile in Spain, and then the Bahamas — another spot with zero income tax and one of the richest countries per capita in the Americas. His successor to the 007 mantle, Roger Moore, also opted for exile in the 1970s — this time in Monaco — ensuring his millions were neither shaken nor stirred.
EXILE ON MAIN ST.
In 1972, The Rolling Stones controversially moved to the south of France to escape onerous British taxes. Though it caused a stink at the time, it spawned one of the group's most seminal albums, "Exile on Main St." The title is a reference to their tax-dodging. In 2006, British media branded them the "Stingy Stones" with reports that they'd paid just 1.6 percent tax on their earnings of $389 million over the previous two decades.
FISCAL HEALING
In 1980, U.S. singer Marvin Gaye moved to Hawaii from L.A. to avoid problems with the Internal Revenue Service, the American tax agency. Later that year, Gaye relocated to London after a tour in Europe. Gaye, whose hits include "Sexual Healing" and "I Heard it Through the Grapevine" settled in Belgium in 1981. He was shot to death in 1984.
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State tax revenues continue growing in third quarter

WASHINGTON (Reuters) - State tax revenues have grown for more than two years, but they are still suffering the effects of the 2007-2009 recession, according to a report released by the Rockefeller Institute of Government on Thursday.
Using preliminary data, the New York research group found that collection from major taxes increased in 47 states in the third quarter of 2012 from a year before, marking the 11th straight increase.
The recession caused states' revenues to plummet to lows not seen in decades over the course of five quarters. That forced almost all states to make emergency spending cuts, raise taxes, borrow and turn to the federal government for help just as the newly jobless and homeless increased demand for their services.
While revenues have been growing, the increases have been small. According to the institute, revenues "are still far below where they would have been in the absence of the Great Recession." Moreover, when adjusted for inflation, revenues are 5 percent below the peaks they reached in fiscal 2008, the last year before the recession devastated their budgets.
Rockefeller found that personal income tax collections were up 4.5 percent in the quarter ending in September, and sales taxes grew 3.1 percent. Corporate income taxes, which provide only a sliver of revenues, fell 0.5 percent.
In the third quarter of 2011, personal income tax collections surged 10.2 percent.
Delaware had the largest increases in overall tax collections in the third quarter, 11.7 percent, followed by Colorado, 10.3 percent.
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Muni tax break under threat from bipartisan scrutiny in congress

WASHINGTON (Reuters) - The tax break that U.S. states, cities and counties get on the bonds they issue is in growing jeopardy now that Republicans, in addition to Democrats, are considering limits on the exemption.
As part of the "fiscal cliff" negotiations to raise more federal government tax revenue, Republican lawmakers have joined Democrats in reevaluating the costly tax break, said Republican congressional aides and lobbyists.
Municipal bonds issued by states and localities are a $3.7 trillion U.S. market underpinned by a law that exempts their interest income from taxation. This allows states and localities to tap capital markets more cheaply than private-sector borrowers such as banks and corporations.
"The muni bond exemption is on the table, not only during tax reform, but also during the 'fiscal cliff,'" said Mike Nicholas of the Bond Dealers of America, a lobbying group for fixed-income securities dealers and banks.
That the tax break - deeply embedded in the economy and vital to state and local governments - would draw the interest of Republicans shows how far Washington has come in a short time in considering potentially dramatic tax-and-spending changes.
As the United States grapples with a huge budget deficit and a complex tax code that has not been revamped in 26 years, even once politically untouchable tax breaks are being questioned.
The "fiscal cliff" refers to sharp tax increases and spending cuts that take effect in 18 days unless Congress intervenes soon.
Some lawmakers from both parties are calling for a comprehensive tax code overhaul in 2013 and groups concerned with the muni bond exemption are worried.
"We have not felt this threat level being this real in a long time," said David Parkhurst, legislative director with the National Governors Association, which represents the leaders of U.S. states that rely heavily on the muni bond tax exemption.
SUBSIDIZING STATES, LOCALITIES
The exemption benefits bond investors on one side of the market and state and local governments on the other. Effectively a subsidy for states and localities, the muni exemption cost U.S. taxpayers about $26.2 billion in 2011.
President Barack Obama in 2011 included the exemption among items subject to his proposed 28-percent cap on deductions and other tax breaks for individuals earning more than $200,000.
That proposal alarmed muni bond issuers and investors, who were already on edge because of a proposal to kill the exemption entirely in 2010's Simpson-Bowles deficit reduction plan.
Now, Republicans are rethinking their traditional reluctance to tinker with muni bonds, largely because they want to find ways to increase federal revenues without raising tax rates.
Phasing out the muni bond tax break for individual taxpayers earning more than $200,000 could raise about $10 billion a year - or about $100 billion over a decade - Republican aides said.
In the fight over the "fiscal cliff," Republicans hope to refute Obama's argument that real deficit reduction cannot be achieved without raising tax rates on high-income Americans.
Senator Orrin Hatch, the top Republican on the Senate Finance Committee, said tax breaks of all sorts need to be weighed in the effort to raise revenue and cut the deficit, but that "they are not easy to get rid of."
FROM STATES TO SCHOOLS
New issuance of tax-exempt bonds is expected to hit about $400 billion in 2013, up from about $370 billion this year, according to investment bank Loop Capital Markets LLC.
Jurisdictions that issue tax-exempt bonds range from states to cities, counties and school districts. They defend the bonds as vital to transportation, infrastructure and other public projects, which would be threatened by an exemption roll-back.
"It certainly couldn't come at a worse time," New York State Comptroller Thomas DiNapoli told Reuters last week, referring to the devastation the region suffered during Hurricane Sandy.
"Even before the storm, we had tremendous infrastructure needs that localities were trying to address and now we're going to have even more."
It is unclear exactly what sort of limitations Republicans have in mind. The Obama proposal would apply to all bond issues.
Citigroup Inc muni bond strategist George Friedlander has estimated that Obama's cap, if enacted, would raise state and local government borrowing costs.
The "fiscal cliff" talks and a possible tax code overhaul next year pose "a clear and present danger" for muni bond issuers and investors, Friedlander said in a recent research report.
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Cricket-South Africa beat New Zealand by an innings and 27 runs

CAPE TOWN, Jan 4 (Reuters) - South Africa beat New Zealand by an innings and 27 runs on the third day of the first test on Friday.
Scores: New Zealand 45 (V. Philander 5-7) and 275 (D. Brownlie 109, B. McCullum 51); South Africa 347 for eight declared (A. Petersen 106, A.B. de Villiers 67, H. Amla 66, J. Kallis 60). (Reporting by Michael Todt; Editing by John Mehaffey)
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Cricket-South Africa v New Zealand 1st test scoreboard

CAPE TOWN, Jan 4 (Reuters) - Scoreboard on the third day of
the first test between South Africa and New Zealand at Newlands
on Friday.
New Zealand first innings 45 (V. Philander 5-7)
South Africa first innings 347 for eight declared
(A.Petersen 106, H.Amla 66, J.Kallis 60, AB de Villiers 67)
New Zealand second innings
M. Guptill c Amla b Steyn 0
B. McCullum lbw b Peterson 51
K. Williamson c Petersen b Kallis 15
D. Brownlie c Peterson b Morkel 109
D. Flynn c de Villiers b Kallis 14
BJ Watling c Smith b Philander 42
J.Franklin b Steyn 22
D.Bracewell c Petersen b Philander 0
J.Patel b Steyn 8
T.Boult not out 2
C.Martin run out 0
Extras (b-1 lb-8 w-3) 12
Total (all out, 102.1 overs) 275
Fall of wickets: 1-0 2-29 3-118 4-155 5-229 6-252 7-252
8-265 9-274 10-275
Bowling: Steyn 30-6-67-3, Philander 24-8-76-2 (1w), Morkel
21-6-50-1 (1w), Kallis 11.1-3-31-2 (1w), Peterson 16-6-42-1
New Zealand won the toss and elected to bat
Result: South Africa won by an innings and 27 runs
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