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Taylor

Nov. 18 (Bloomberg) -- The U.S. economy would suffer a ``catastrophic collapse'' if domestic carmakers fail, General Motors Corp. Chief Executive Rick Wagoner said, as the nation's auto industry renewed appeals to Congress for federal aid.

Three million jobs would be lost within the first year, personal income would drop by $150 billion and government tax losses would total $156 billion over three years, Wagoner told a Senate panel.

``Such a level of economic devastation would far exceed the government support that our industry needs,'' he said. ``This is about much more than just Detroit. It's about saving the U.S. economy from a catastrophic collapse.''

The Big Three chief executives, Wagoner, Alan Mulally of Ford Motor Co. and Robert Nardelli of Chrysler LLC, testified today at a hearing called by Senate Banking Committee Chairman Christopher Dodd, a Connecticut Democrat. The companies are seeking $25 billion in loans to keep them operating.

Congressional Democrats propose tapping the recently enacted $700 billion financial rescue package for the aid. President George W. Bush and Senate Republicans said they oppose that approach and instead prefer using $25 billion that was earlier approved by Congress to retool auto plants.

Senate Majority Leader Harry Reid said he didn't think the idea of using the earlier-approved Energy Department loans for the aid would be ``going very far in our caucus.'' The impasse dimmed prospects for aid approval during this week's lame duck session of Congress.

`Tremendous Risk'

``A decision to make government assistance available makes much more sense than taking the tremendous risk to our already- fragile economy that come with inaction,'' Mulally testified.

Nardelli said, ``Without immediate bridge financing support, Chrysler's liquidity could fall below the level necessary to sustain operations.'' If Chrysler was forced to declare bankruptcy, he said in prepared testimony, ``we cannot be confident that we will able to successfully emerge.''

A first quarter 2009 bankruptcy could cause U.S. gross domestic product to shrink by at least 4 percent as U.S. auto production would slide by 30 to 35 percent, according to an analysis released today. Unemployment would immediately increase to 8 to 8.25 percent, according to the analysis by Deutsche Bank economist Joseph LaVorgna.

Taxpayers Help

``I support efforts to assist the industry, not because their leaders necessarily deserve the taxpayers' help,'' Dodd said as the auto chiefs looked on. Aid is needed ``to minimize the possibility of a destabilizing event in the economy.''

Senator Richard Shelby of Alabama, the committee's top Republican, said the panel must determine the long-term outlook of automakers before deciding on the aid.

``Is $25 billion enough?'' Shelby said. ``Is this the end or just the beginning?''

Senator Charles Schumer, a New York Democrat, said automakers are ``too vital to let fail,'' though he was concerned they would be back in months to seek more dollars unless Congress requires an industry overhaul. ``We need a business model based on cars of the future.''

Senator Jim Bunning, a Kentucky Republican, said the Democratic aid plan ``is not a serious one'' and is ``virtually a blank check'' that doesn't require concessions.

Needing 60 Votes

Democrats in the Senate probably need 60 votes to advance their plan and they hold only a 50-49 majority. Bush spokeswoman Dana Perino said yesterday the Senate lacks the votes to pass the Democrats' legislation.

Senate Republican leader Mitch McConnell of Kentucky said earlier today the $25 billion in the previously approved Energy Department loans should be expedited as an alternative to the Democratic plan. The loans were part of the 2007 energy bill and are designated for retooling auto plants to help build smaller and alternatively powered cars.

Senator Carl Levin of Michigan, who helped write the Democratic legislation, said he is open to alternatives. ``We need to see language of people who have different paths to the common goal, so we can try to reconcile them,'' he said.

Wagoner said GM was ``well on the road to turning our North American business around'' when the global credit crisis hit. GM had reached an agreement with the United Auto Workers union and in 2009 will offer 20 models that get at least 30 miles per gallon on the highway, he said.

``The recent plunge in vehicle sales threatens not only GM's ongoing turnaround but our very survival,'' he said.

Mulally disputed what he described as recent ``highly critical'' commentary on automakers, saying the critics don't grasp that ``we at Ford are on our way to realizing a complete transformation of our company.''

Ford has been changing its model mix, accelerating the development of fuel-efficient vehicles and has closed 17 plants in North America, Mulally said.

``America's auto companies are investing in innovation,'' Nardelli said. ``Chrysler plans to emerge from the current downturn as a lean, agile company.''

Taylor

LUSAKA (AFP) — Zambian opposition leader Michael Sata will challenge his defeat in last week's election at the Supreme Court, seeking a recount after losing by just 35,000 votes, his party's spokesman said Tuesday.

The opposition Patriotic Front plans to file the case on Tuesday, spokesman Given Lubinda told reporters.

"We don't accept the results," he said. "There is no action besides the court."

He said the Patriot Front would ask the Supreme Court for a recount to verify Rupiah Banda's razor-thin victory, in which he won 40.09 percent of the vote to Sata's 38.13 percent.

Banda was sworn in as president on Sunday, just two hours after the election commission declared him the winner.

Sata had earlier accused electoral authorities of rigging the vote and inflating the voter roll in Banda's favour. The election commission denied the charges, and African observers declared the poll free and fair.

Taylor

BEIJING, Nov. 3 (Xinhua) -- Wang Yi, Taiwan affairs chief of the Chinese mainland, said here on Monday that cross-Straits consultations should follow a step-by-step pattern.

The two sides should first tackle issues that are relatively easier to solve, said Wang, director of both the Taiwan Work Office of the Communist Party of China Central Committee and the Taiwan Affairs Office of the State Council.

He made the remarks as he saw off Chen Yunlin, president of the mainland-based Association for Relations Across the Taiwan Straits(ARATS),at the Beijing Capital International Airport.

Wang said that the stance was also the consensus of the ARATS and the Taiwan-based Straits Exchange Foundation, with whose chairman -- Chiang Pin-kung -- Chen is to hold talks during the five-day visit.

During Chen's visit, the two organizations will mainly discuss cross-Straits direct shipping, air transport, postal services and food safety.

Wang said the topics were agreed on previously by both sides. He added that the signing of agreements on these four issues would lay a foundation for more comprehensive development of cross-Straits relations.

The consultations would be step-by-step and confined to the four issues this time, he said.

As to the next step, Wang said the mainland would respect the Taiwan compatriots' opinions and try to include in future talks issues that they hoped to solve.

The mainland held an open and positive attitude toward future topics, he said, citing discussions on normalization of the cross-Straits economic ties and exploration of mechanized arrangements of cross-Straits economic cooperation.

He called for accelerated construction of a cross-Straits economic cooperation framework of long-term stability which conforms to the characteristics of their ties and meanwhile can win support from the people on both sides of the Taiwan Straits.

During the process, talks would naturally involve starting financial cooperation, realizing mutual investment, implementing investment protection, avoiding double taxation and jointly cracking down on crimes and protecting intellectual property rights, he said.

Asked to comment on the different reactions on the island toward Chen's visit, Wang said polls showed that the majority of Taiwan public welcomed the visit and supported the improvement and development of cross-Straits ties.

"We know there are different voices," Wang said, "I think, so long as the opinions are well-meaning and beneficial to cross-Straits relations and to enhancing the mutual understanding between people on the two sides, we will give them respect."

Chen's visit marks the first ever meeting in Taiwan between leaders of the ARATS and the Taiwan-based Straits Exchange Foundation (SEF).

Founded in 1991 and 1990 respectively, the ARATS and SEF are authorized by the mainland and Taiwan to handle cross-Straits civilian exchanges. Negotiations were suspended for almost 10 years until June, when Chen and Chiang held their first meeting in Beijing.

Wang said the detailed schedule of Chen's visit was still in consultation, expressing hope the activities would play a positive role in enhancing the cross-Straits ties and bringing the people on both sides emotionally closer to each other.

news.xinhuanet.com

addicted

Tuesday, November 18, 2008

Carmaker Failure Would Be Catastrophe, Wagoner Says

Monday, November 3, 2008

Zambian opposition vows court challenge on election loss

Mainland Taiwan affairs chief: Cross-Straits talks to be step-by-step

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