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Wednesday, May 02, 2007

Free Internet Press Newsletter - Wednesday May 2 2007 - (813)

Wednesday May 2 2007 edition
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Patriot Act Residency Clause Adds Fuel To Dispute Over U.S. Attorneys
2007-05-02 02:32:15

On Nov. 10, 2005, Attorney General Alberto R. Gonzales sent a letter to a federal judge in Montana, assuring him that the U.S. attorney there, William W. Mercer, was not violating federal law by spending most of his time in Washington as a senior Justice Department official.

That same day, Mercer had a GOP Senate staffer insert into a bill a provision that would change the rules so that federal prosecutors could live outside their districts to serve in other jobs, according to documents and interviews

Congress passed the provision several months later as part of the USA Patriot Act reauthorization bill, retroactively benefiting Mercer and a handful of other senior Justice officials who pull double duty as U.S. attorneys and headquarters officials. Justice officials say the measure was a necessary clarification to ensure that prosecutors could fill temporary postings in Washington, Iraq and elsewhere, and that it also applies to assistant U.S. attorneys.

The episode, which received little notice at the time, provides another example in which Gonzales' statements appear to conflict with simultaneous actions by his aides in connection with U.S. attorney policies. Lawmakers investigating the department's handling of the dismissal of eight U.S. attorneys have repeatedly accused Gonzales of being less than truthful about the roles played by himself and the White House.


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Pentagon Study Says Oil Reliance Strains Military
2007-05-02 02:31:43
A new study ordered by the Pentagon warns that the rising cost and dwindling supply of oil - the lifeblood of fighter jets, warships, and tanks - will make the U.S. military's ability to respond to hot spots around the world "unsustainable in the long term."

The study, produced by a defense consulting firm, concludes that all four branches of the military must "fundamentally transform" their assumptions about energy, including taking immediate steps toward fielding weapons systems and aircraft that run on alternative and renewable fuels. It is "imperative" that the Department of Defense "apply new energy technologies that address alternative supply sources and efficient consumption across all aspects of military operations," according to the report, which was provided to the Boston Globe.

Weaning the military from fossil fuels quickly, however, would be a herculean task - especially because the bulk of the U.S. arsenal, the world's most advanced, is dependent on fossil fuels and many of those military systems have been designed to remain in service for at least several decades.


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Wolfowitz's Story Disputed By Ex-World Bank Official
2007-05-02 02:30:54

The former chairman of the World Bank's ethics committee Tuesday accused the institution's embattled president, Paul D. Wolfowitz, of misleading a panel investigating his role in granting his girlfriend a substantial pay raise.

In a written submission to the investigating committee, the former ethics chairman, Ad Melkert, contradicted Wolfowitz's assertion that he fully informed bank officers of his handling of his girlfriend's transfer to the State Department and that his actions had their blessing.

"I am deeply hurt by efforts to manipulate information," Melkert said in his statement, maintaining that his committee was never consulted on the details of a promotion-and-raise package for Wolfowitz's girlfriend. His comments to the committee were an elaboration on a statement he released late Monday.


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Bush Vetoes War-Funding Bill
2007-05-01 20:20:28

President Bush Tuesday vetoed a $124 billion emergency war-funding bill that contains a timetable for the withdrawal of U.S. forces from Iraq, calling the measure "unacceptable" and saying it amounts to setting a date for "failure."

The veto, only the second of his presidency, set up a confrontation with the Democratic-controlled Congress over his Iraq war policy.

Acting on the fourth anniversary of his so-called "Mission Accomplished" speech aboard the aircraft carrier USS Abraham Lincoln, Bush carried out his veto threat shortly after returning to the White House from a visit to Florida, where he delivered a speech at the U.S. Central Command.


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U.S. Indicts Online Payment Network For Abetting Fraud, Child Pornography
2007-05-01 20:19:42

The principal owners of E-Gold Ltd., an online payment system where users convert currency assets into equivalent amounts of precious metals, were indicted last week for allegedly allowing the service to be used by criminals engaged in financial scams and child pornography.

The indictment names the company's co-founders - Douglas L. Jackson, of Satellite Beach, Florida, and Barry K. Downey, of Woodbine, Maryland, as well as Reid A. Jackson, of Melbourne, Florida. They are charged with conspiracy, money laundering and operating an unlicensed money transfer business. The company has offices in Melbourne, Florida, but is incorporated in the Caribbean island of Nevis.

"The advent of new electronic currency systems increases the risk that criminals, and possibly terrorists, will exploit these systems to launder money and transfer funds globally to avoid law enforcement scrutiny and circumvent banking regulations and reporting," said James E. Finch, of the FBI's Cyber Division.


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Al-Qaeda In Iraq Leader Believed Dead
2007-05-01 20:18:35
The al-Qaeda in Iraq leader, Abu Ayyub al-Masri, has been killed in a fight between insurgents north of Baghdad, the Iraq Interior Ministry claimed Tuesday.

Brigadier General Abdul Kareem Khalaf told Reuters: "We have definite intelligence reports that al-Masri was killed today."

Another source in the ministry said al-Masri, also known as Abu Hamza al-Muhajir, had been killed. Brig. Gen.  Khalaf said Iraqi and U.S. forces were not involved. The U.S. military said it could not confirm the death.

In February the Iraqi government said al-Masri had been wounded by Iraqi troops but escaped in a clash north of Baghdad after soldiers stormed a base near Balad.


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Under Pressure To Resign, Olmert Stands Fast As Junior Minister Quits In Protest
2007-05-01 20:17:36
A member of the Israeli cabinet resigned Tuesday to protest the handling of the Lebanon war, increasing the political pressure on the prime minister, Ehud Olmert.

Eitan Cabel - until Tuesday a minister without portfolio from the Labor party - the main coalition partner of Olmert's Kadima party - told a news conference: "Ehud Olmert must resign. He must bear responsibility. I can no longer sit in a government led by Ehud Olmert."

Cabel's resignation follows inquiry findings into the Lebanon war - published Monday - that harshly criticized the prime minister and his defense minister, Amir Peretz, from the Labor party, as well as the army chief, Dan Halutz, who had already quit.

Olmert, who heads the centrist Kadima party, said he would not resign, insisting he was the best man to put things right.


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Venezuela Seizes Last Privately Held Oil Fields
2007-05-01 13:25:24
President Hugo Chavez's government took over Venezuela's last privately run oil fields Tuesday, intensifying a struggle with international firms over the development of the world's largest known petroleum deposit.

Oil Minister Rafael Ramirez declared that the Orinoco fields had reverted to state control just after midnight. Television showed oil workers in hard hats raising the flags of Venezuela and the national oil company over a refinery and four drilling fields in the Orinoco River basin.

Chavez, a strong critic of U.S.-style capitalism and a leader of the leftist movement in Latin America, planned a more elaborate celebration later on May Day, the international workers' holiday, with red-clad oil workers, soldiers and a flyover by Russian-made fighter jets.


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2001 Warnings On Student Lenders Unheeded By Bush Aides
2007-05-01 13:24:47

The Bush administration killed a proposal to clamp down on the student loan industry six years ago following allegations that companies sought to shower universities with financial favors to help generate business, according to documents and interviews with government officials.

The proposed policy, which Education Department officials drafted near the end of the Clinton presidency and circulated at the start of the Bush administration, represented an early, significant but ultimately abortive government response to a problem that this year has grown into a major controversy.

Now, as the $85 billion-a-year student loan industry faces an array of investigations into questionable business practices that some officials believe could have been curtailed by the 2001 proposal, the Education Department has embarked on a new effort to set rules for the industry to prevent conflicts of interest and other abuses. If approved, the rules would be implemented in summer 2008, a few months before Bush leaves the White House.

The abandonment of the 2001 proposal underscores what some consumer advocates and Democratic lawmakers believe is lax federal oversight of the financial aid system by a department they say is too cozy with the industry. More than a dozen senior department officials either previously worked in the student loan business or found high-paying jobs in the sector after they left the agency.


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Turkish Court Blocks Islamist Presidential Candidate
2007-05-01 13:24:00
Turkey’s constitutional court Tuesday supported an effort to block a candidate for the country’s presidency whose background is in political Islam, pitching the country into early national elections and a referendum on the role of religion in its future.

In a 9 to 2 ruling, the court upheld an appeal by the main secular political party to stop Abdullah Gul, the current foreign minister and a close ally of Prime Minister Recep Tayyip Erdogan, from becoming president, objecting to what it says are his Islamic credentials.

But the ruling, which involved the legality of a parliamentary vote for Gul that was held last Friday, was more political than legal: The court is part of Turkey’s secular establishment, which is now mounting an assault against Erdogan and the emerging class of devout Turks that he represents, and its decision did not come as a surprise.


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Venezuela Pulling Out Of World Bank, International Monetary Fund
2007-05-01 01:17:24
Venezuelan President Hugo Chavez announced Monday he would pull Venezuela out of the World Bank and the International Monetary Fund (IMF), a largely symbolic move because the nation has already paid off its debts to the lending institutions.

"We will no longer have to go to Washington nor to the IMF nor to the World Bank, not to anyone," said the leftist leader, who has long railed against the Washington-based lending institutions.

Venezuela, one of the world's top oil exporters, recently repaid its debts to the World Bank five years ahead of schedule, saving $8 million. It paid off all its debts to the IMF shortly after Chavez first took office in 1999. The IMF closed its offices in Venezuela late last year.

Chavez, who says he wants to steer Venezuela toward socialism, made the announcement a day after telling a meeting of allied leaders that Latin America would be better off without the U.S.-backed World Bank or IMF. He has often blamed their lending policies for perpetuating poverty.


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Report: Worldwide Terrorist Attacks Increase 25 Percent
2007-05-01 01:16:41
Terrorist attacks worldwide shot up more than 25 percent last year, killing 40 percent more people than in 2005, particularly in Iraq where extremists used chemical weapons and suicide bombers to target crowds, the State Department said Monday.

Among countries, Iran remains the biggest supporter of terrorism, with elements of its government backing groups throughout the Middle East, notably in Iraq, giving material aid and guidance to Shiite insurgent groups that have attacked Sunnis, U.S. and Iraqi forces, it said.

In its annual global survey of terrorism, the department said 14,338 attacks took place in 2006, mainly in Iraq and Afghanistan, 3,185 more than in 2005 representing a 28.5 percent increase.

These strikes claimed a total of 20,498 lives, 13,340 of them in Iraq, 5,800 more, or a 40.2 percent increase, than last year, it said.


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Sunni Ministers Threaten To Quit Iraq Cabinet
2007-05-01 01:14:02
The largest bloc of Sunni Arabs in the Iraqi Parliament threatened to withdraw its ministers from the Shiite-dominated cabinet on Monday in frustration over the government’s failure to deal with Sunni concerns.

President Bush stepped in to forestall the move, calling one of Iraq’s two vice presidents, Tariq al-Hashimi, a Sunni Arab, and inviting him to Washington, D.C., according to a statement issued by Hashimi’s office and the White House.

The bloc, known as the Iraqi Consensus Front and made up of three Sunni Arab parties, “has lost hope in rectifying the situation despite all of its sincere and serious efforts to do so,” said the statement.


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Louisiana Plan Would Divert Mississippi River To Reclaim Land
2007-05-01 01:12:57
Over two centuries, engineers have restrained the Mississippi River's natural urge to wriggle disastrously out of its banks by building hundreds of miles of levees that work today like a riverine straitjacket.

It is time, Louisiana officials propose, to let the river loose.

To save the state from washing into the ocean at the astonishing rate of 24 square miles per year, Louisiana officials are developing an epic $50 billion plan that would rebuild the land by rerouting one of the world's biggest rivers. The proposal envisions enormous projects to provide flood protection and reclaim land-building sediment from the river, which now flows uselessly out into the Gulf of Mexico.

The cost of the project, which was initiated by the legislature after hurricanes Katrina and Rita revealed the dangers of the sinking coast, dwarfs those of other megaprojects such as the $14 billion "Big Dig" in Boston and the $8 billion Everglades restoration.


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Fires Gut 2 Historic Sites In Washington, D.C.
2007-05-01 01:11:42
Two fires ravaged historic sites in the nation's capital Monday, one gutting part of the 134-year-old Eastern Market and the other destroying irreplaceable documents and art at the Georgetown public library branch.

Fire Chief Dennis L. Rubin said there was absolutely no suspicion that the fires were related.

The first blaze tore through the southern half of the Eastern Market, a Capitol Hill landmark listed on the National Register of Historic Places. The city-owned building was empty at the time and there were no injuries, said Rubin.

Hours later, a blaze rushed through the D.C. Public Library's Georgetown branch. The building, in the Georgetown National Register Historic District, was undergoing renovations. There were no injuries.


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Editorial: Spying On Americans
2007-05-02 02:31:57
Intellpuke: The following editorial appears in the New York Times edition for Wednesday, May 2, 2007.

For more than five years, President Bush authorized government spying on phone calls and e-mail to and from the United States without warrants. He rejected offers from Congress to update the electronic eavesdropping law, and stonewalled every attempt to investigate his spying program.

Suddenly, Mr. Bush is in a hurry. He has submitted a bill that would enact enormous, and enormously dangerous, changes to the 1978 law on eavesdropping. It would undermine the fundamental constitutional principle - over which there can be no negotiation or compromise - that the government must seek an individual warrant before spying on an American or someone living here legally.

To heighten the false urgency, the Bush administration will present this issue, as it has before, as a choice between catching terrorists before they act or blinding the intelligence agencies. But the administration has never offered evidence that the 1978 law, the Foreign Intelligence Surveillance Act, hampered intelligence gathering after the 9/11 attacks. Mr. Bush simply said the law did not apply to him.


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U.S. Seeks To Close Visa Loophole For Britons
2007-05-02 02:31:11
Omar Khyam, the ringleader of the thwarted London bomb plot who was sentenced to life imprisonment on Monday, showed the potential for disaffected young men to be lured as terrorists, a threat that British officials said they would have to contend with for a generation.

The 25-year-old Khyam, a Briton of Pakistani descent, also personifies a larger and more immediate concern: as a British citizen, he could have entered the United States without a visa, like many of an estimated 800,000 other Britons of Pakistani origin.

American officials, citing the number of terror plots in Britain involving Britons with ties to Pakistan, expressed concern over the visa loophole. In recent months, the homeland security secretary, Michael Chertoff, has opened talks with the government here on how to curb the access of British citizens of Pakistani origin to the United States.

At the moment, the British are resistant, fearing that restrictions on the group of Britons would incur a backlash from a population that has always sided with the Labor Party. The Americans say they are hesitant to push too hard and embarrass their staunch ally in the Iraq war, Prime Minister Tony Blair, as he prepares to step down from office.


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Millions Of Chickens Fed Tainted Pet Food
2007-05-02 02:30:32

At least 2.5 million broiler chickens from an Indiana producer were fed pet food scraps contaminated with the chemical melamine and subsequently sold for human consumption, federal health officials reported Tuesday.

Hundreds of other producers may have similarly sold an unknown amount of contaminated poultry in recent months, they added, painting a picture of much broader consumption of contaminated feed and food than had previously been acknowledged in the widening pet food scandal.

Officials emphasized that they do not believe the tainted chickens - or the smaller number of contaminated pigs that were reported to have entered the human food supply - pose risks to people who ate them.

"We do not believe there is any significant threat of human illness from this," said David Acheson, the Food and Drug Administration's chief medical officer. FDA Commissioner Andrew von Eschenbach named Acheson yesterday the agency's new "food czar" - officially, assistant commissioner for food protection.


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Interior Official Quits Ahead Of Hearing
2007-05-01 20:20:05
An Interior Department official accused of pressuring government scientists to make their research fit her policy goals has resigned.

Julie MacDonald, deputy assistant secretary for fish, wildlife and parks, submitted her resignation letter to Interior Secretary Dirk Kempthorne, a department spokesman said Tuesday.

MacDonald resigned a week before a House congressional oversight committee was to hold a hearing on accusations that she violated the Endangered Species Act, censored science and mistreated staff of the U.S. Fish and Wildlife Service.

MacDonald was recently rebuked by the department's inspector general, who told Congress in a report last month that she broke federal rules and should face punishment for leaking information about endangered species to private groups.


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U.S. Intelligence Director Urges Surveillance Expansion
2007-05-01 20:19:03

A Bush administration proposal to expand a 29-year-old intelligence surveillance law that governs eavesdropping on phone calls and e-mails to and from the United States should be approved by Congress because the law is badly outdated, National Intelligence Director Michael McConnell said Tuesday.

Under the current law, "the intelligence community is significantly burdened in capturing overseas communications of foreign terrorists planning to conduct attacks inside the United States," McConnell said at a hearing of the Senate Select Committee on Intelligence. " ... We must make the requested changes to protect our citizens and the nation."

On April 13, the Bush administration asked Congress to authorize changes to the Foreign Intelligence Surveillance Act, a 1978 law that governs domestic surveillance of suspected terrorists and spies. Under the law, the National Security Agency may only target communications of individuals believed to be associated with a foreign terrorism suspect or a foreign power. A secret federal court decides whether to approve these surveillances.


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Thousands Rally For Path To Citizenship
2007-05-01 20:18:01
Immigration rallies held across the country Tuesday produced only a fraction of the million-plus protesters who turned out last year, as fear about raids and frustration that the marches haven't pushed Congress to pass reform kept many at home.

In Los Angeles, California, where several hundred thousand turned out last year, about 25,000 attended the first of two scheduled rallies, said police Capt. Andrew Smith, an incident commander. In Chicago, where more than 400,000 swarmed the streets a year earlier, police officials put initial estimates at about 150,000.

Organizers said those who did march felt a sense of urgency to keep immigration reform from getting pushed to the back burner by the 2008 presidential elections.

"There's no reason a pro-immigration bill can't be passed. That's one of the messages being sent today," said Chicago protester Shaun Harkin, 34, of Northern Ireland, who has lived in the United States as a legal resident for 15 years.


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BP Chief Resigns As Private Life Made Public
2007-05-01 20:17:13
Lord Browne stepped down as chief executive of BP with immediate effect Tuesday afternoon.

He tendered his resignation after the House of Lords lifted an injunction that prevented the Mail on Sunday from publishing details of his four-year relationship with another man. He also admitted lying at an earlier court hearing.

Lord Browne will forfeit his entitlement to a year's notice, and a bonus worth more than £3.5 million ($7 million). He will also miss out on a long-term share plan that could have generated £12 million ($24 million) over the next two years, and had been opposed by BP shareholders.


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U.S. Supreme Court Weakens Patent's Power
2007-05-01 13:25:09

The Supreme Court concluded a series of cases Monday that weaken the protection given to patent holders, making it more difficult to get a patent and easier to challenge existing ones.

Patent experts said one of two cases decided Monday - KSR International v. Teleflex- is the court's furthest-reaching ruling in the field for decades. The decision sends a clear message that the U.S. Patent and Trademark Office and lower courts must be more open in considering whether inventions are "obvious," a common ground for denying an application.

"Granting patent protection to advances that would occur in the ordinary course without real innovation retards progress and may, in the case of patents combining previously known elements, deprive prior inventions of their value or utility," Justice Anthony M. Kennedy wrote for a unanimous court.

In a separate case, the court ruled Monday that Microsoft did not violate an AT&T patent when its Windows software was installed on computers manufactured overseas.


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Murdoch's News Corp. Makes A Bid For Dow Jones
2007-05-01 13:24:21

The News Corporation, owner of the Fox News Channel and the New York Post, has made an unsolicited $5 billion takeover bid for Dow Jones, publisher of the Wall Street Journal.

Dow Jones confirmed today that it had received the offer but said only that the Bancroft family, which controls the company, was evaluating the bid. “There can be no assurance that this evaluation will lead to any transaction,” the company said in a written statement.

A person close to the situation said that it came in the form of a letter to the Dow Jones board two weeks ago.

After news of the offer was reported this morning on CNBC, shares of Dow Jones leaped 58 percent. News Corp. offered $60 a share in cash for all outstanding stock in Dow Jones - a whopping premium over the $36.33 closing price on Monday. Trading of Dow Jones stock was briefly halted on the New York stock exchange as shares approached $58. When trading resumed by midday, the price fell back somewhat but remained above $54.


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Republicans Buck Bush On Iraq Benchmarks
2007-05-01 01:17:38

Brushing aside White House opposition, Republican leaders in Congress said Monday that negotiations on a second war spending bill should begin with benchmarks of success for the Iraqi government, and possible consequences if those benchmarks are not met.

Democratic leaders will send a $124 billion war funding bill to President Bush today that would establish such benchmarks and tie them to troop withdrawals, which would begin as early as July 1 if they are not met. The bill will arrive at the White House on the fourth anniversary of Bush's speech aboard the USS Abraham Lincoln, when he declared an end to major combat operations in Iraq before a banner that proclaimed "Mission Accomplished."

The administration dispatched Secretary of State Condoleezza Rice on Sunday to try to slam shut bipartisan talk of punishing the Iraqi government for not meeting benchmarks. Bush took the same uncompromising tone yesterday when he reiterated his veto promise.


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Venezuela Set To Gain Control Of Its Oil Fields
2007-05-01 01:17:05
President Hugo Chavez's government will take control Tuesday of what might be the world's richest oil fields, a huge swath known as the Orinoco Belt that Big Oil has spent a decade and nearly $20 billion developing.

In the past two years, Venezuela, like energy-rich countries from Russia to Bolivia, has exerted increasing control over its oil. But now, Chavez's administration will take its biggest leap yet, with the state oil company assuming a 60 percent stake in four projects previously run by multinationals, including ExxonMobil, ConocoPhillips and Chevron.

The shift is being greeted with revolutionary fervor. "For the country's workers, it's a day to celebrate," Energy Minister Rafael Ramirez said recently.

Despite the pomp of the occasion, many oil analysts question whether the state company, Petroleos de Venezuela, is prepared to oversee the development of projects in the country's north that, if fully exploited, could give Venezuela the largest certified oil deposits in the world.


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Senators Question Halliburton Executive About Dealings In Iran
2007-05-01 01:16:24
A Halliburton executive, facing withering criticism from Democratic lawmakers during a Senate hearing on Monday about the company’s business dealings in Iran, insisted that the firm had not broken any laws.

The official, Sherry Williams, a Halliburton vice president and corporate secretary, said the company had consulted several law firms in 1995 after sanctions were imposed on Iran. Officials of the company, which recently announced it was moving its chief executive from Houston to Dubai and establishing a corporate headquarters there, determined that it was legal for independent foreign subsidiaries of United States companies to do business there, she said.

“We have followed U.S. law,” she said. “We will continue to follow U.S. law.”

Although the three Democratic senators on hand repeatedly suggested broader concerns than strict legality should have prompted the company to halt its business in Iran, Williams expressed no regret for the firm’s work there.

From 1995 to 2000, Vice President Dick Cheney was Halliburton’s chairman; at the time he spoke out against sanctions on Iran.


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Poles Demand Missile Shield Against Russia
2007-05-01 01:13:23
Poland and the Czech Republic are raising the ante in negotiations with the Americans, demanding missiles to deploy against Russia and security and legal guarantees in return for hosting elements of the U.S. missile shield.

The missile defense program is splitting Europe and igniting a new cold war-style clash with the Kremlin, and the demands from the central Europeans plunge the Pentagon project into greater uncertainty.

The negotiations, about extending the missile defense project from California and Alaska to Europe, are expected to be wound up before the end of the year. The Poles are insisting on U.S. security guarantees and supplies of Patriot missiles to protect themselves against a perceived threat from Russia, while the Czechs are embroiled in discussions over how a U.S. radar base south of Prague would be safeguarded and what's in it for the Czechs.


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5 British Men Found Guilty In Bombing Plot, Get Life Sentences
2007-05-01 01:12:12
Five British men were convicted Monday of plotting to kill hundreds of people by bombing a shopping center, nightclub or other target in London, in a case that officials said demonstrates increasing links between homegrown British extremists and senior members of the al-Qaeda terrorist network in Pakistan.

After a year-long trial and a record 27 days of jury deliberation, the five were found guilty of conspiring to build and detonate a massive fertilizer bomb. Officials said the plot, which involved the purchase of 1,300 pounds of ammonium nitrate fertilizer, was at the time the most ambitious mass murder attempt ever disrupted by British security services.

Testimony during the trial revealed meetings in Britain and Pakistan between the convicted men and two of the four bombers who attacked the London public transit system on July 7, 2005, killing 52 other passengers and themselves. Those links were withheld from jurors to avoid prejudicing their decision, and British law prevented the news media from reporting them until now.

"You have betrayed this country that has given you every opportunity," said Judge Michael Astill, issuing life sentences to Omar Khyam, 26, the group's presumed ringleader; Waheed Mahmood, 34; Jawad Akbar, 23; Salahuddin Amin, 31; and Anthony Garcia, 24. Two other men, Nabeel Hussain and Khyam's brother, Shujah Mahmood, were found not guilty in the case, which British police referred to as Operation Crevice.


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