The agriculture and fishery sector provided the dampener, dedining by 04 per cent in the quarter as the effects of the typhoons that pummelled many parts of the country in late lingered in the first three months of North Korea has so far failed to com- ply with a statement issued by the UN Security Council on Monday urging it to stop removing spent fuel rods from its 5MW reactor.
The International Atomic Energy Agency wants to select and examine the spent nuclear fuel to determine whether North Korea has diverted plu- tonium from the reactor for its sus- pected nuclear weapons programme. In an apparent show of force, North Korea on Tuesday conducted a test launch of a domestic version of the Chi- nese-designed Silkworm anti-ship mis- sile. Meanwhile, South Korean armed forces were placed on a routine high state of alert following the departure of President Kim Young-sam on a week- long visit to Russia and Uzbekistan.
The IAEA will be able to examine the fuel rods once North Korea and the US conclude a package deal on diplomatic normalisation and economic aid, he added. New central bank governor wants to make island a regional financial centre Taiwanese opposition member Sn Chib-yang left perches on the podium in the National Assembly in Taipei yesterday, and other opposition members pull the hair of a clerk to stop her reading an agenda, in a dispute over the size of the quorum.
Mr Liang - who in his previ- ous position as fthairman of Chiao Tung Bank, a state- owned development institu- tion, last year scuppered a planned joint venture between British Aerospace and Taiwan Aerospace to produce short- haul passenger jets - vowed to boost lending to local manufac- turing and industry. The arcpcsinn of Mr Liang , 63, who holds a doctorate in economics from Vanderbilt University in the US, to the top banking job is viewed favoura- bly by analysts and bankers. His experience in commercial banking was acquired during stints at the helm of each of the three leading state-run commercial banks.
Mr Liang also served as deputy central bank governor from to Known for speaking his mind, Mr Liang might have become central bank governor several years ago had he not made enemies along the way.
IBs predecessor, Mr Samuel Shi eh. However, Mr Liang has close personal ties to President Lee Teng-hui, under whose aus- pices the central bank falls. He has been a financial adviser to Mr Lee for some time. Analysts cautioned that while Mr Liang was firmly in the camp of the reformers, it would be difficult to change quickly the thinking of the central bank bureaucracy. Privately however, some senior OECD aid officials are believed to be sympathetic with the domestic UK criticism of the Pergau project which involved a linkage between aid and militar y contracts.
The OECD report is thought to have identified the conflict of interests that arose in the decision by the British govern- ment to approve the Pergau project after overruling advice from its own civil servants responsible for aid. A draft report was circulated soon afterwards and approved by member coun- tries with minor amendments to its wording. A report by the House of Commons foreign affairs com- mittee is in process of being completed and is due to be published before the start of the summer.
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Kieran Cooke adds from Kuala Lumpur After several months' negotiations, Malaysia says it is ready to sign an agreement with Russia on the sale of 18 M1GS for use by the Malay- sian air force. Mr Najib Abdul Razak. Malaysian defence minister, said the purchase agreement would be signed with the Rus- sians next Tuesday.
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Malaysia originally announced plans to buy the MiGs in the middle of last year. The Russians are said to be offering a maintenance and training package with the MiGs. Malaysian companies will also be Involved in some parts manufacturing for the fighters. The first MiGs are likely to be delivered to Malaysia by mid The deal is the first big arms sale by Russia in the Asean region. Malaysia's armed forces are going through an extensive modernisation programme. Britain, Iran exchange diplomat expulsions By Roger Matthews, Middle East Editor Relations between Britain and Iran deteriorated further yes- terday as both governments announced the expulsion of a diplomat.
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The Foreign Office in Lon- don yesterday made public its decision to expel Mr Vahid Belourchi, a first secretary at the Iranian embassy, for alleg- edly distributing forged docu- ments about British policy in Bosnia. Iran had been told of the British decision last week, when it was agreed that no publicity would be given to the expulsion in the hope of avoid- ing further repercussions.
However, Tehran said yester- day it was retaliating by expel- ling Mr Hamish Cowell, the deputy head of the British mis- sion in Tehran. The latest downward turn in relations between the two countries began in April when Britain accused Iran of estab- lishing links with the IRA, and of planning to provide weapons and training for Irish republi- can extremists. Iran denied that any contacts had taken place and suggested instead that a listening device had been found implanted in the wall of its refurbished embassy in London. Iran has become frustrated at its inability to aid Moslems in Bosnia and the refusal by western powers to accept the deployment of Iranian peace- keeping forces in the former Yugoslavia.
The regime in Tehran also believes that Britain is playing a key supporting role in the US policy of denying Iran access to international financial markets at a time of growing economic difficulties in the Islamic republic. The HD1, which ranks coun- tries by a measure combining life expectancy, educational attainment and basic purchas- ing power, is intended to add another dimension to World Bank reports on economic indi- cators by seeing how economic growth translates into people's fives. This year, Canada tops the HDI list - scoring 0.
Thailand showed the most progress. Life expectancy in the devel- oping world rose from 46 years in to 63 years in and the infant mortality rate was halved. The adult literacy rate in the same countries increased from 48 per cent to 69 per cent. But Afghanistan. Angola, Haiti. Burma Myanmar. Sudan and Zaire face disaster as a conse- quence of critical levels of socio-economic deprivation.
A bloodbath has happened in Rwanda while other countries which could face national breakdown include Algeria, Burundi, Ivory Coast. Liberia, Nigeria and Sierra Leone. Of the 82 conflicts between and , 79 wars have been within nation states and the report argues that national collapse has tended to follow persistent threats to the human security of the people. Current patterns of aid dis- tribution promise little rem- edy. Many nations have sacri- ficed h uman security for more sophisticated weaponry. India ordered 20 advanced MiG fighters at a cost that could have provided basic education to all the 15m girls now out of school the report says.
Though global military spending has been falling 3.
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Patterns of development funding still bear the scars of the cold war. El Salvador, for example, gets 16 times more aid per person than Bangla- desh, even tho u g h Bangladesh has just half the per capita gross domestic product The report suggests new financial arrangements for human development to be put into action at the World Sum- mit for Social Development in March , hosted by Den- mark on behalf of the UN.
The report also proposes the SCHtfCK UNDP establishment of an Economic Security Council in the United Nations to become the highest decision-making forum to con- sider issues such as poverty, unemployment, food security', drug trafficking, pollution and population migration.
The Human Development Report. Oxford University Press. Cary, NC Telepkone Price S When he made his maiden presidential voyage to Europe in January, he was a man with a discernib le and difficult mis- sion - to set Nato on a new path and to stiffen the forces of reform in Russia - and at least he achieved mixed results.
This time, nothing on the agendas with the Italian. Brit- ish and French governments, and even the Pope, compares in weightiness, unless it be Bosnia. Instead, his principal purpose is ceremonial, to rep- resent his country at the com- memoration of the 50th anni- versary of the Normandy landing s But there is an edgy sense of foreboding in the Clinton camp about the week that begins in Rome today and then bops back and forth across the English Channel.
This Is a president with a multitude of problems on his back. To put it crudely, the con- cern is whether Mr Clinton - who never served in uniform, was bom three years after D-Day and opposed the Viet- nam Conflict - can play the public part of commander-in- chief as well as did President Reagan on the Normandy beaches 10 years ago, even thnngh he fought the last war in the studios of Hollywood.
They fear an eruption of bimbo stories while Mr Clinton is in Britain - but at least they now accept that would not be orchestrated by Conservative Party central office. Even the session with the Pope today is not risk-free from a mpHifl standpoint Mr Reagan was once able to nod off with impunity in a Vatican exchange but the pontiff is prpprtpri this time to complain loudly about US abortion poli- cies, Hparififfgliy the more lib- eral approach the US is recom- mending for adoption at the UN population conference in Cairo in September.
The nuances of any presidential meeting with new neo-fascist members of the Berlusconi government of Italy will also be closely watched. Beyond the particular and the ceremonial, Mr Clinton must have a broader purpose in all his pablic comments while in Europe - which is to give a sense that he does have a coherent foreign policy. This rapidly changing environment, offering both exceptional opportunities and complex new challenges, demands vision and leadership from business - a vision founded on a new spirit of partnership to bring mutual, long- term benefit to both companies and communities.
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Sharing this vision, a group of international chairmen and chief executives have joined The Prince ofWales in forming the Business Leaders Forum, in order to promote good corporate citizenship and sustainable development internationally as a natural part of successful business operations. He has also begun to speak more frequently about the US role in the world - on Monday, for example, a gnaHng past sacrifices and present challenges.
Clear contradictions persist even so. The recent presiden- tial directive on peace-keeping was more intent an defining : where US troops would not he! But this time, Mr Clinton had better not put even the occasional foot wrong on a beach, in a pub, or in palaces and boats beyond number.
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Other members have their own techniques for making a dollar go further. Mr Rostenkowski could have retired in and pocketed more than yim from his cam- paign funds perfectly legally under now-expired rules that left long-serving members of Congress subject to older, looser campaign finance restrictions. Mr Rostenkowski used his congressional office to per- petrate an extensive fraud on the American people.
Mr Holder rejected sugges- tions that Mr Rostenkowski. This was not conduct that was ever acceptable," he said. Even political opponents, such as Mr Gingrich, acknowl- edge Mr Rostenkowski's skill at getting bills through the House. The heart of the healthcare battle is, in any case, the Sen- ate. Similar forebodings pre- vailed a year and a half ago when Senator Pat Moynihan took over the chai rmanshi p of the Finance committee from Mr Lloyd Bentsen, who left Congress to become Treasury secretary.
Although Mr Moynihan has not himn exactly the chairman the White House might have hoped for, thwarting the administration on several issues, he has certainly not been an incompetent flop. The same is likely to be true of Mr Gibbons. The institution of the Ways and Means com- mittee carries an authority that transcends each succes- sive chairman. Tbat is, perhaps, as Mr Ros- tenkowski, long one of the staunchest defenders of Con- gress as an institution, would like it. Industrial price increases revive fears of inflation By George Graham in Washbigton NAPM index A new survey from the National Association of Pur- chasing Managers yesterday showed prices in the manufac- turing sector continued to rise last month.
The NAFM said its compos- ite index of activity in the manufacturing sector remained steady last month at But another sharp jump in the price component of the closely watched survey helped to revive inflation fears In a nervous bond market. The NAPM price index rose last month to Although the price index showed a sharp Increase, econ- omists cautioned that that does not necessarily indicate sharply higher prices.