Jumat, 24 Oktober 2008

McCain seeks to win back momentum

US Republican presidential candidate John McCain is to campaign in Colorado, as he seeks to take advantage of his rival's brief absence from the trail.

Barack Obama has halted campaigning to see his ill grandmother in Hawaii. His wife will replace him at an Ohio rally.

John and Cindy McCain in Florida, 23 Oct
John McCain has been attacking Mr Obama over tax policy

Some polls show the Democrat's lead narrowing in key battleground states.

Meanwhile, Mr McCain's running mate, Sarah Palin, is to give a deposition to a second inquiry into her alleged abuse of power as governor of Alaska.

It comes as two leading Republicans announced they had chosen to endorse Mr Obama rather than their party's own candidate.

They are former Bush White House press secretary Scott McClellan and Republican Minnesota Governor Arne Carlson.

The news, only days after former Secretary of State Colin Powell gave his endorsement to the Democratic candidate, may dent Mr McCain's efforts to seize back the initiative, correspondents say.

Ethics questions

Mrs Palin will take a break from campaigning in Pennsylvania and Missouri on Friday to give her deposition to the Alaska Personnel Board investigation.

Sarah Palin campaigns in Ohio, 23 Oct
Mrs Palin rejected the first ethics inquiry as politically motivated

The governor is accused of violating ethics rules when she fired the state's top law enforcement official, Walt Monegan, allegedly because he refused to sack her former brother-in-law, a state trooper.

A lawyer for Mrs Palin said she would speak to the independent lawyer leading the inquiry - which was requested by herself - in an interview expected to last up to three hours.

Her husband, Todd, will also give a deposition to the lawyer, Timothy Petumenos.

An initial investigation by Alaska's state legislature found Mrs Palin had the authority to remove Mr Monegan from his post but had breached ethics laws in seeking to have her ex-brother-in-law fired.

The McCain-Palin campaign dismissed it as politically motivated.

Campaign spokesman Taylor Griffin said the second inquiry was one Mrs Palin had requested "to make sure the facts were out there on this".

Tax attacks

Mr McCain spent Thursday campaigning in the key I-4 corridor in central Florida, travelling from the Atlantic coast to Sarasota on the Gulf of Mexico.

Barack Obama campaigns in Indianapolis, 23 Oct
Mr Obama will return to the campaign trail on Saturday

He has been stepping up his attacks on Mr Obama as a tax-and-spend Democrat who wants to share the wealth.

"He's more concerned about using taxes to spread the wealth than creating a tax plan that creates jobs and grows our economy," Senator McCain told a cheering crowd at an Ormond Beach, Florida.

Mrs Palin, campaigning in Ohio, struck a similar theme.

Mr Obama held a rally in Indianapolis on Thursday before embarking on the 11-hour flight to Hawaii to visit his grandmother, Madelyn Dunham.

Speaking to US TV network CBS, he said he regretted not having seen his mother before she died of cancer and wanted "to make sure that I don't make the same mistake twice".

He also criticised the McCain campaign for using what he said were smear tactics against him.

The Illinois senator will return to the campaign trail on Saturday.


Shares plummet on recession fears

European share markets have all fallen sharply on renewed recession fears, following an earlier sell-off in Asia.

London's FTSE index plunged 7.5% after figures confirmed Britain's economy shrank 0.5% in the last quarter - the first time in 16 years.

The pound fell to $1.52 - the lowest level in five years - on expectations of further UK rate cuts.

London curency trader
Recession fears have hit all European markets

There were even steeper falls in other European markets. Frankfurt fell nearly 10% and Paris was down 8%.

Banking shares were particularly hard hit. Santander, the largest bank in the eurozone, saw its shares plummet 11%.

Elsewhere HBOS plunged 18%, Barclays dropped 14%, Societe General 12% and Deutsche Bank was down 11%.

FTSE 100 INDEX: 24 October 2008
FTSE 100 intraday chart
*All Times GMT

DAX INDEX: 24 October 2008
Dax intraday chart
*All Times GMT
  • The pound has dropped more than 8% against the dollar this week, as investors expect further UK interest rate cuts. Lower interest rates tend to weaken a country's currency, as investors take their money elsewhere
  • The euro dropped to $1.25, the lowest level for two years, on expectations of eurozone interest rate cuts and slowing economic growth
  • In Moscow, trading was suspended for one hour after the main share index dropped 7.4% in the first two hours of trading
  • The oil producers' cartel Opec has agreed to cut oil output by 1.5 million barrels per day at its emergency meeting in Vienna, as it tries to prop up falling prices. Oil prices have fallen to a 16-month low amid fears a global economic recession will cut demand
  • The UK economy shrank for the first time in 16 years between July and September, confirming that Britain is on the brink of recession.

RBS chief economist Geoffrey Dicks said Britain's recession would last for at least a year, saying: ""It will get worse before it gets better, the next 12 months will be very difficult."

CMC Markets trader Matt Buckland said: "Volatility and uncertainty seem to be the watch words at the moment."

Earnings fears

Across Asia, share prices tumbled for a third day in a row as investors feared a global recession would badly hit company earnings.

Japan's Nikkei closed at a five-and-a-half year low, down 9.6% after the electronics giant Sony halved its full-year profit forecasts.

South Korea's market plunged 10.6% as chip maker Samsung announced a 44% fall in its third-quarter profits.

Earlier Thursday was another volatile trading day on Wall Street after a slew of weak corporate earnings stoked fears of a United States recession.

The main Dow Jones index fell as low as 8,251 points before closing the day up 172 points or 2% at 8,691.

The technology-heavy Nasdaq, in contrast, lost 0.73% to close at 1,603.9 points.

Bali bombers' execution date set

Three men convicted over the 2002 Bali bombings will be executed in early November, the Indonesian attorney general's office says.

The three - Imam Samudra, Amrozi and Mukhlas, also known as Ali Ghufron - were sentenced to death for their roles in the attacks which killed 202 people.

They were found guilty of planning the attacks, which targeted nighclubs at Bali's tourist resort of Kuta.

Convicted Bali bomber Amrozi
Amrozi is known as the 'smiling bomber'

The bombings were blamed on the militant group Jemaah Islamiah.

Friday's announcement comes after several appeals made on behalf of the three men.

Firing squad

The three are held in Nusakambangan maximum security prison, where officials said the executions would take place.

A pledge by the attorney general to see them die by Ramadan - which fell in early September - was not met.

However in its latest statement, his office said: "All legal recourse for the convicts has been finalised, and all requirements met.

"The execution of Amrozi, Ali Ghufron and Imam Samudra will be carried out at the beginning of November."

Earlier this month, Indonesia's Constitutional Court rejected defence arguments that the three should be beheaded, instead of being executed by firing squad, which, they argued, did not guarantee instant death and would amount to torture.

The BBC's Lucy Williamson in Jakarta says few Indonesians support the bombers, but the execution of men who say they were defending Islamic values is likely to spark some reaction even so.

Senin, 20 Oktober 2008

Rice defends Middle East legacy

US Secretary of State Condoleezza Rice has told the BBC she believes the Middle East is a better place for the policies of President George W Bush.

Asked to assess the outgoing US administration's legacy, she said she was especially proud of the situation in the Palestinian territories.

US Secretary of State Condoleezza Rice being interviewed by BBC Arabic TV
Ms Rice said the US had helped advance the cause of freedom

She insisted that what she called a US-inspired "freedom agenda" had taken hold in the Middle East.

Ms Rice also said Iraq had become a "good Arab friend" of America.

"The Middle East is a different place and a better place," Ms Rice told BBC Arabic TV.

Iraq, far from being destroyed, was fully integrated into the Arab world, she said.

Elsewhere, Syrian forces were out of Lebanon and women had the vote in Kuwait, she noted.

"Democracy is finally in the vocabulary of the Middle East in a way it was not before," Ms Rice said.

'Serious' peace process

She predicted that the "democracy agenda, the freedom agenda" would continue in the Middle East under the next US presidential administration because, she said, the people of the region wanted it.

Asked about what she was particularly proud of, Ms Rice responded:

"I don't think that you have had an administration that has more actively been seeking a Palestinian state...

"This president... has launched the most active and robust negotiations towards a two-state solution that perhaps the region has ever seen," she said.

"The Palestinians now have a peace process that is the most serious one in many many years."

Ms Rice, speaking just weeks before the presidential election, added that the US remained ready to negotiate with Iran over its nuclear programme but had to be wary.

"What we don't want to do is to give Iran cover to continue improving its nuclear programmes that could lead to a nuclear weapon," she said.

Iran denies it is seeking nuclear weapons and says its programme is purely a civilian one.

Israel website in 'Nazi pope' row

A photo montage which superimposed a Nazi swastika over Pope Benedict has appeared on a website run by supporters of Israel's leading political party.

The image was later removed from the Yalla Kadima website, apparently on the orders of party leader Tzipi Livni.

The incident comes amid a row with the Vatican over Israeli claims that the late Pope Pius XII could have done more to prevent the Holocaust.

Exhibit mentioning Pope Pius XII at Yad Vashem
An exhibit at the Yad Vashem memorial is seen as critical of Pius XII

Ms Livni is currently trying to form a government and become prime minister.

"Tzipi Livni strongly condemns this and we are working to remove this shameful picture. We strongly oppose this. It doesn't represent Kadima," spokesman Amir Goldstein said shortly before the photo was changed.

Speaking anonymously, one of the website's editors told the BBC the site is a platform for Kadima activists to voice their opinions in a manner they cannot do on the official website.

The letter and graphics were sent in by a group of pensioners, he said.

"Some of these people are first generation or second generation Holocaust survivors, and this is their legitimate protest," he said.

He said Ms Livni rang personally and asked for the picture to be taken down, saying it could cause diplomatic strife.

There are objections among many in Israel to the long process, begun in 1967, to make Pope Pius, who was pontiff from 1939 to 1958, a saint.

'Incorrect interpretation'

The row blew up afresh last week after the Vatican official in charge of the process said the current pontiff, Benedict, should not accept Israel's invitation to visit until the wording on an exhibit in the Yad Vashem Holocaust memorial in Jerusalem is changed.

Pope Benedict XVI
Israel has issued an invitation to Pope Benedict to visit

The display says that, despite warnings from clergy throughout Europe about the deportation of Jews to death camps, Pope Pius XII did nothing to condemn it or to intervene.

The Vatican has repeatedly objected to the content of the display, saying it is an "incorrect interpretation of the late Pope's role".

The Holy See maintains that Pius actively helped some Jews by sheltering them in churches and monasteries.

But the Vatican has also said the exhibit should not be a "determining factor" in a papal visit.

Pope Benedict spoke last month in favour of the beatification process, a stage on the way to sainthood, for the former Pope.

And Israel has long regarded the Vatican, which did not recognise the country until 1993, as pro-Palestinian.

For its part, the Vatican wants to resolve a stand-off over the taxation of Church property in Israel, as well as problems with visas.

Our correspondent says there is plenty of work ahead, but this meeting is a significant step towards a warmer relationship.

Olive harvest attacks anger Abbas

Palestinian leader Mahmoud Abbas has condemned violence by Israeli settlers against Palestinians harvesting their olives as a "dangerous escalation".

There have been several reports of attacks in recent days, a week into the yearly olive harvest.

But settlers have accused Palestinians of burning their own olive groves and then blaming them.

Settlers kick Palestinian photographer near Hebron (18.10.08)
Settlers were filmed near Hebron kicking a Palestinian photographer

Mr Abbas criticised Israel for failing to stop the attacks, but the army says it is working to protect Palestinians.

Millions of olive trees across the West Bank provide a livelihood to many Palestinians.

"We condemn the attacks against our Palestinian people and the harassment by the settlers and army during the olive harvest in more than one place in the West Bank," said Mr Abbas, in comments published in Israeli newspapers on Monday.

He said he would fund the planting of a million trees, calling on Palestinians to green the West Bank with olive groves.

'Vocal and disruptive'

On Monday, the Palestinian-led International Solidarity Movement said more than 100 settlers had blocked roads near the West Bank town of Qalqilya and had been throwing stones.

They said four people, three internationals and one Israeli citizen, had been arrested "after being attacked by settlers" while helping Palestinian farmers pick olives.

In an incident filmed by the Associated Press on Saturday, a Palestinian photographer and a British woman were punched by settlers in the West Bank town of Hebron before the Israeli military broke up the scuffle.

Palestinian woman holds stones during clashes with settlers near Nablus (19.10.08)
This year's olive harvest is said to have seen a rise in clashes
The Israeli military criticised the Palestinians in the area for going out to harvest their olives without coordinating the timing with them.

Under measures which the Israeli military says are aimed at reducing clashes, Palestinians in some areas must harvest their olives according to a timetable agreed by Israeli and Palestinian authorities.

The Jerusalem Post on Saturday quoted an unnamed "top Israeli Defence Forces official" as saying this year's harvest was one of the most violent in recent years, with 20 clashes so far.

On Tuesday, Israel's defence minister lashed out at those he called "thugs" who interfere with the olive harvest.

"I condemn these thugs who interfere with the olive harvest which constitutes an important sector of the Palestinian economy," Ehud Barak told Israel's army radio.

The settlers' Yesha Council has said that while "a few very vocal, very visible and very disruptive Jews... allegedly carry out actions against the Arab olive groves", the number involved is "tiny" and the damage minor compared to "vandalism and theft against Jewish farms elsewhere".

The tensions come against a backdrop of a rise in violent incidents between Palestinians and settlers in the West Bank this year.

Israel has settled about 450,000 of its citizens in the West Bank and East Jerusalem since it occupied the areas in 1967.

Settlements, which are heavily guarded by the Israeli army, are considered illegal under international law, though Israel disputes this.


Bush says economic 'panic' easing

The US president has suggested that Americans are starting to feel more positive about their economic future.

During a meeting with business leaders in Louisiana, George Bush said people's attitudes had changed from "near panic" to a "more relaxed" approach.

He put it down to the effects of the huge bail-out agreed with Congress to sustain the financial system.

US President George W Bush in Louisiana (20/10/08)
Mr Bush was optimistic but warned there was a long way to go

Earlier, Federal Reserve chief Ben Bernanke said more government spending may be needed to combat the slowdown.

Although Mr Bernanke stopped short of saying the US was in recession, he said the American economy was likely to be weak for several quarters.

A fresh economic stimulus package "at this juncture seems appropriate", he told the US House of Representatives budget committee.

His comments were welcomed by Democratic leaders in Congress, who called on Republicans and the White House to work together to formulate a plan.

A White House spokesman said the Bush administration was "open" to a new package, depending on its make-up, and would seek guidance from others including Mr Bernanke.

'Serious consequences'

Mr Bush struck an optimistic tone while addressing the Central Louisiana Chamber of Commerce.

"I have heard that people's attitudes are beginning to change from a period of intense concerns - I would call it near panic - to being more relaxed," he said.

But he warned that there was "a long way to go".

A series of crises in the housing, credit and financial sectors have badly hit the US economy.

Many analysts are forecasting the US economy will shrink later this year and early next year. This would meet the classic definition of a recession - which is two quarters of negative growth.

However, some economists believe America is already in a recession, something that Mr Bernanke more than hinted at.

"We are in a very serious slowdown in the economy which has very serious consequences for the public. Whether it's called a recession or not is of no consequence," he said.

Any government spending would need to kick in quickly to encourage people and businesses to boost spending and help the economy during the period in which economic activity would be otherwise weak, he said.

The Federal Reserve chairman also said the package should include provisions that would aid the jammed credit markets, which has been a major factor in the economy's slowdown.


Obama to visit sick grandmother

US Democrat presidential candidate Barack Obama is cancelling campaign events this week to visit his sick grandmother in Hawaii, an aide says.

The announcement came as Mr Obama made campaign stops in Florida, including a rare joint appearance with former rival Hillary Clinton.

In one speech he vowed to halt eviction of homeowners defaulting on mortgages.

Republican John McCain attacked his rival's economic policies, and vowed to take the country in a new direction.

Barack Obama and Hillary Clinton appear together at a rally in Florida
Mrs Clinton urged voters to "close the deal for Barack Obama"

Campaigning in Missouri, another swing state, John McCain accused his Democratic rival of misleading the electorate by plotting to hike taxes.

"After months of campaign trail eloquence... we finally learned what Senator Obama's economic goal is... he wants to 'spread the wealth' around," Mr McCain said.

"If I'm elected president I won't raise taxes on small businesses, Senator Obama will and that will force them to cut jobs."

Mr McCain said he would tackle the housing crisis by "buying up bad mortgages and re-financing them" in order "to realise the American dream and keep people in their homes".

'Ugly' campaign

Mr Obama's campaign said the candidate would leave the campaign trail on Thursday to visit his maternal grandmother, 85-year-old Madelyn Dunham.

He is cancelling events in Des Moines, Iowa and Madison, Wisconsin for the visit.

The condition of Ms Dunham, who helped to raise her grandson, is not clear although aide Robert Gibbs said her health had deteriorated in recent weeks.

"Senator Obama's grandmother, Madelyn Dunham, has always been one of the most important people in his life," Mr Gibbs said in a statement.

"Along with his mother and his grandfather, she raised him in Hawaii from the time he was born until the moment he left for college."

Mr Obama spent the day in Florida, accusing the Republican camp of "ugly" campaigning but said he would not be "distracted" by it.

He focused his attention on the economy and those in Florida who have been hit hard by the mortgage crisis and financial slowdown.

"We have tried it John McCain's way. We have tried it George Bush's way. It hasn't worked. It's time for something new," Mr Obama said.

'Town criers'

At one rally, Hillary Clinton joined her fellow Democrat on stage and urged the crowd of 50,000 supporters to "close the deal for Barack Obama".

"Sending the Republicans to clean up the economic mess in Washington is like sending the bull to clean up the china closet," she warned.

It was the first time the pair - who were bitter rivals in the Democratic primaries - had appeared together since July.

Mr Obama has been pushing early voting on a major scale, using speeches, e-mails and advertisements placed in popular video games.

Officials in Florida were expecting a busy day.

Thousands of Mr Obama's volunteers have been mobilised, including "town criers" riding on public buses, offering lifts to college students, and neighbourhood teams to give voters a push.

"There's too much at stake in this election to leave this responsibility to the last minute,'' said Steve Schale, Mr Obama's campaign director in Florida.

Meanwhile Mr McCain's campaign has opted to focus its efforts more selectively on supporters who do not always vote in presidential elections.

The party believes it can count on more reliable voters to get to the polls on 4 November, Rich Beeson, political director for the Republican National Committee, told the Associated Press news agency.

About a third of US electors in 2008 are expected to cast their vote early.

The process has grown in popularity in recent years, as people have become more familiar with it.

Early voting provisions have been expanded and restrictions on absentee ballots eased.

Registered voters can either cast their ballots in person or by mail, thus avoiding queues at polling stations on election day.

Nato's Afghan effort 'disjointed'

A top Nato commander has described Western efforts in Afghanistan as "disjointed" and warned that the battle cannot be won by military means alone.

Speaking in London, Gen John Craddock also said the political will in the fight against the Taleban was wavering.

The US general suggested that Nato allies were still failing to supply enough troops to fight the insurgency.

General John Craddock (file photo)
Gen Craddock said the conflict could not be won by military means alone

He said security must be provided to enable the Afghan government and its allies to deliver good governance.

General John Craddock has added his voice to a growing chorus of frustration over Afghanistan among Western military commanders.

Speaking to the Royal United Services Institute, a military think-tank in London, the general cited the 70 separate restrictions or caveats on what some forces were allowed to do in Afghanistan.

He also warned that military efforts were not being backed up sufficiently on the civilian side. Nato forces, he said, could clear and hold the ground, but it was then up to others to come in to rebuild a civil society.

Disjointed

Gen Craddock echoed recent comments made by Brigadier Mark Carleton-Smith, the outgoing British commander in Helmand Province.

"The conflict in Afghanistan cannot be won by military means alone. We are just one member of a greater team," he said.

"The military must provide a safe and secure environment... we must come together as part of a truly comprehensive approach. The current effort remains disjointed in time and space."

Gen Craddock said there had to be more co-ordination and coherence.

He warned that the Afghan authorities must also do much more to tackle corruption and provide an effective police and justice system, and good governance - otherwise, any military victory would be in vain.

Chinese economy growth rate slows

China's economic growth rate has fallen for the third quarter in succession, amid fears that the economy could be heading for a severe downturn.

The National Bureau of Statistics said the economy had grown at a rate of 9% in the three months to September - down from 10.1% over the previous quarter.

Factory worker in Fujian province (18 October 2008)
Chinese exports have been a key driver of the economy

Spokesman Li Xiaochao said the impact of the global financial crisis had far exceeded the government's expectations.

Meanwhile shares rose in Asia. Japan's Nikkei index ended the day up 3.59%.

Share values also rose in Hong Kong, Australia, and South Korea.

No signs of recovery'

The third quarter growth rate announced on Monday marked a significant fall from the 10.4% growth of the first half of 2008, and the 12.2% growth seen in the first three quarters of 2007.

"There are no signs of a definite recovery from the financial crisis," statistics bureau spokesman Li Xiaochao told a news conference.

"The growth rate of the world economy has slowed down noticeably. There are more uncertain and volatile factors in the international economic climate," he said. "All these factors have started to release their negative impact on China's economy."

Correspondents say indicators from steel prices to housing sales suggest a severe economic slowdown could be in prospect.

Chinese factories are reporting that export orders are down sharply. Last week, the government said that half the country's toymakers had gone out of business.

Mr Li said the government had initiated timely measures to deal with the economic slowdown and cushion the impact from the global credit crisis, including falling exports and a restricted credit supply.

These included changing its focus from preventing the overheating of the economy and preventing structural inflation to the "preserving growth" and "controlling" inflation, he added.

Officials said over the weekend that the government was preparing to announce tax cuts and increased infrastructure investment. Curbs on the housing market in certain areas may also be relaxed.

Investors check the Shanghai stock index (14 October 2008)
The main stock index in the city of Shanghai is sharply down

The People's Bank of China has cut interest rates twice and reduced banks' required reserves since mid-September. A third interest rate cut is expected later this year.

The BBC's Quentin Sommerville in Shanghai says that although the government it is doing what it can to boost demand at home, China's new middle class is already feeling the pinch.

The stock market is sharply down, so too are house prices, while car sales have slowed dramatically. Consumers are cutting down on spending as they believe there are tougher times ahead, he says.

The National Bureau of Statistics also announced on Monday that consumer price inflation had cooled to a 15-month low of 4.6% in September. In February, inflation had hit a 12-year-peak of 8.7%.

Mr Li said the slowdown in inflation showed that the policies initiated by regulators to control it had been effective.

Colin Powell backs Barack Obama

US President George W Bush's first Secretary of State, Colin Powell, has endorsed Democratic election candidate Barack Obama for the White House.

Backing Mr Obama over John McCain, the Republican Party's choice to succeed Mr Bush in November, he said the Democrat had the "ability to inspire".

"All Americans... not just African-Americans" would be proud of an Obama win, he argued.

Mr McCain said he was not surprised at his "long-time friend's" decision.

Bracak Obama in Dunn, North Carolina, on 19 October
Barack Obama was on the stump in North Carolina on Sunday

He pointed out that other former secretaries of state had backed his own candidacy, naming them as Henry Kissinger, James Baker, Lawrence Eagleburger and Alexander Haig - all Republicans.

Addressing a rally in Fayetteville, North Carolina, Mr Obama said he was "deeply humbled" by Mr Powell's support.

"He knows, as we do, that this is a moment where we need to come together as one nation - young and old, rich and poor, black, white, Hispanic, Asian, Native American, Republican and Democrat," he added.

His campaign said earlier that the two men had spoken for 10 minutes by telephone.

The Obama campaign also announced it had raised a record monthly total of more than $150m (£86m) in September, reaching a total of $605m and dwarfing the total of Mr McCain, who chose to stay within the public campaign financing system.

Important moment

The Powell endorsement is an important moment in the campaign, BBC North America editor Justin Webb says.

Colin Powell does not bring a state and he probably does not bring many additional supporters, our correspondent says.

But what he does do is solidify Barack Obama's appeal with the middle-of-the-road voters who are worried about whether or not he has sufficient experience for the job.

To hear these words from Colin Powell in a television interview this morning, will have been deeply reassuring to many American voters, our correspondent adds.

One interesting sideline to the Powell endorsement is that he gave as one reason for his choice Sarah Palin's presence on the Republican ticket, arguing she was not ready for the White House.

That is a view that is likely to add to the rumblings of discontent on the Republican side about John McCain's choice of running mate, our correspondent adds.

'Electrifying' choice

"I think he [Barack Obama] would be a transformational president," Mr Powell told NBC's Meet The Press.

An Obama victory would "not just electrify our country, it would electrify the world", he said.

Mr Obama was better suited to handle America's economy, the former secretary of state argued:

"In the case of Mr McCain... you got the sense that he didn't have a complete grasp of the economic problems that we had."

President Bush's first secretary of state criticised his own party for allowing the campaign to turn negative.

"I'm also troubled by, not what Senator McCain says, but what members of the [Republican] Party say... such things as 'Well, you know that Mr Obama is a Muslim'.

"Well the correct answer is, 'He's not a Muslim, he's a Christian, he's always been a Christian'. But the really right answer is, "What if he is?' Is there something wrong with being a Muslim in this country? The answer is 'No', that's not America."

Mr Powell said he remained a Republican though he thought his party was moving too far to the right.

'No surprise'

"It isn't easy for me to disappoint Sen McCain in the way that I have this morning, and I regret that," Mr Powell added.

Speaking on Fox News, Mr McCain said he had "always admired and respected Gen Powell".

"We're long-time friends," he said. "This doesn't come as a surprise."

Later, addressing a cheering crowd of supporters in Ohio, Mr McCain said the media had "written off" his campaign but he would fight on with their support.

Tsvangirai 'cannot attend talks'

Zimbabwe's opposition leader Morgan Tsvangirai cannot attend regional talks on the crisis because of delays with his travel documents, officials say.

The authorities did not give him a passport but an emergency travel document, and he did not have time to get a visa, one of his aides said.

MDC rally in Masvingo, 19 October 2008
MDC supporters want a new government to resurrect the economy

The summit in Swaziland was called after the failure of four days of talks last week on allocating cabinet posts.

Mr Tsvangirai and President Robert Mugabe have agreed to share power.

But Mr Tsvangirai's Movement for Democratic Change (MDC) has accused Mr Mugabe of trying to grab power, by allocating all the key ministerial positions to his Zanu-PF party.

MDC Secretary General Tendai Biti said the difficulties Mr Tsvangirai has had getting travel documents made it clear that Mr Mugabe was not ready to share power, the Associated Press news agency reports.

The MDC leader has not had a normal passport for almost a year, the AFP news agency says.

He was reportedly given an emergency document only valid for a single trip to Swaziland. However the only way of getting from Zimbabwe to Swaziland is via South Africa.

But Zimbabwean Information Minister Sikhanyiso Ndlovu dismissed the MDC claim as "a gimmick", reports the Reuters news agency.

"He has been given a travel document. South Africa is mediating, how can they deny him passage?"

Monday's meeting is being hosted by King Mswati of Swaziland. He is a member of the security panel of the Southern African Development Community (SADC), along with the leaders of Angola and Mozambique.

On Sunday, Mr Tsvangirai said the deal was sound but there was "a problem of trust" between himself and Mr Mugabe.

But Zanu-PF's chief negotiator Patrick Chinamasa warned: "They [SADC] can't impose anything on us especially on such a small matter as the allocation of ministries."

Difficult negotiations

Mr Tsvangirai described last week's talks in Harare as "a one-man monologue" by Mr Mugabe.

Robert Mugabe arrives for power-sharing talks in Harare (17 October 2008)
Robert Mugabe said his allies should hold the key posts in the cabinet

The efforts to reach a deal were mediated by former South African President Thabo Mbeki.

Mr Mbeki oversaw the signing of the power-sharing framework deal a month ago, but has since stepped down from office in South Africa and is now attempting to construct Zimbabwe's new government as a private citizen.

The BBC's Jonah Fisher, following events from South Africa, says the power-sharing deal now teeters on the brink of collapse.

President Mugabe has allocated the main ministries, including defence, home, foreign affairs, and justice, to Zanu-PF.

Mr Tsvangirai later told Mr Mbeki that 10 cabinet positions needed to be revisited at the negotiations, officials said.

MINISTRY DIVISION
Zanu-PF: 14 ministries including:
Defence
Foreign affairs
Justice
Local government
Media
Main MDC: 13 ministries including:
Constitutional and parliamentary affairs
Economic planning and investment promotion
Labour
Sport
Arts and culture
Science and technology development
MDC (Mutambara): three including:
Education
Industry and commerce
Source: Government gazette

As well as finance, the MDC also insisted it should have home affairs - and control of the police - if Zanu-PF had defence.

They say they need home affairs to give them a stake in the country's security forces and that power sharing should mean them getting a fair share of key cabinet positions, our correspondent says.

The MDC accused the security services of taking part in violent attacks on its supporters before June's presidential run-off election.

Yet it was the MDC's insistence on taking the home affairs portfolio that has proved the biggest sticking point, a senior aide to Mr Mugabe told The Herald newspaper.

Reports on Friday suggested that Mr Mugabe might have agreed to let the MDC take the key post of finance minister, but that he would not give it home affairs.

Finance is one of the most crucial posts, as Zimbabweans hope the power-sharing deal will lead to action to tackle the economic crisis.

Donors have promised to help finance a recovery plan but they are unlikely to release funds if a Zanu-PF minister is in charge.

At 231,000,000%, Zimbabwe has the world's highest rate of annual inflation, while some two million people need food aid. Aid agencies warn that figure could double within the next few months.

According to the original power-sharing deal agreed last month, 15 ministries are to be allocated to Zanu-PF, 13 to the MDC, and three to a smaller MDC faction led by Arthur Mutambara.

Infographic showing power-sharing deal

Sabtu, 18 Oktober 2008

How free are reporters in China?

Chinese paramilitary policeman

Rules that gave foreign reporters greater freedom during the Beijing Olympics are due to expire. The BBC asked a range of reporters in China what difference the rules have made to their working lives.

JAMES MILES
Correspondent for the Economist

"It was mainly a psychological difference, we had been widely flouting the rules before, leaving Beijing to report in the provinces without seeking advance approval as was officially required.

"So when the new regulations were introduced, we were still travelling just as much but without the fear of the knock on the door by the police, without the need to change from hotel to hotel to remain under the radar screen.

"But we were still frequently encountering local officials who either didn't know or said they didn't know about the new Olympic regulations or were determined to ignore them.

nervous policeman in Tiananmen Square
Chinese policemen used to be nervous of foreign journalists

"There was one remarkable incident, shortly after the new regulations were introduced early last year, when I went to Henan province.

"As I expected, I was stopped by local officials. But I called the Foreign Ministry in Beijing, and remarkably, the local officials apologised to me and disappeared, leaving me with startled villagers who said this was the first time they'd ever managed to openly speak with foreign journalists.

"But since then, I've encountered the same kind of difficulties as before the regulations. A few days ago, I was out in the western region of Xinjiang, and was detained for several hours by local police.

"There are key parts in the country that remain very difficult to get into, and the most obvious one is Tibet. Tibet wasn't mentioned specifically in the Olympic regulations, in theory they apply to the whole of China, but orally Chinese officials said Tibet remained excluded and we still had to seek permission."

MICHAEL BRISTOW
BBC correspondent

"These rules were a small step forward in that they allowed foreign reporters to legitimately travel across China without first getting permission.

"But, like many rules and laws issued by the Chinese central government, they weren't always implemented properly.

We need these very minimal rules to be continued - and extended to China's own journalists
Calum MacLeod, USA Today
"In fact, the Chinese authorities, whether in some far-flung village or in central Beijing, would simply ignore the rules if it suited them.

"They often intimidate foreign reporters - by detaining them or following them in unmarked cars - which prevents us doing our jobs.

"I was hassled by the authorities in Sichuan while trying to report on the grief of parents who lost children during the earthquake.

"And, like other foreign news organisations, under these rules the BBC was not welcome to roam Tibetan areas asking questions."

SHIOZAWA EIICHI
Reporter for the Japanese agency Kyodo News

"After the rules were introduced, we didn't need to get local government permission to travel to places, so that made my life a lot easier.

"Before, if we had no permission, we feared getting caught by the police. Once the rules came in, we could relax. Now we have to take care again.

"It's sometimes easier for me than it is for American or European reporters in China, because I am Asian and can sometimes pass for being Chinese.

Potala palace
To report from Tibet, journalists still need special permission
"That means I can go to places that others would not be able to get to because they would be detected. Last week I went to Xinjiang.

"One bad aspect of the regulations was that it made it more difficult for us to interview local officials.

"Before the Olympic reporting rules, they would often organise events that would allow us to meet them.

"After the rules came in, they said we could organise things ourselves, which was not always easy."

CALUM MACLEOD
China correspondent for USA Today

"The biggest beneficiaries of these rules were TV and radio journalists because they require more people and equipment to do their jobs, and so are more visible.

"For the print media, it's easier to be less conspicuous.

"In the past, the rules stated that all foreign journalists needed approval before interviewing people outside Beijing and Shanghai, but these rules were largely ignored.

"What the new regulations did, in effect, was to legitimise reporting activities that were already taking place.

When the Olympics arrived, despite the new rules, the Chinese government was so nervous that they tightened up control
Barbara Luethi, Swiss TV

"Even while these rules were in place, I've still been detained in local areas and had my reporting restricted by officials who did not know the rules or did not care about them.

"But, as foreign journalists, it did mean we had a piece of paper to show them.

"We need these very minimal rules to be continued - and extended to China's own journalists."

BARBARA LUETHI
Asia correspondent for Swiss Television

"These rules looked good on paper, but they weren't implemented properly.

"In Beijing, when I was stopped I could pull out the rule booklet and tell the police I was allowed to be there.

"Or I could call the Foreign Ministry and they would tell the police to let you go.

photojournalist stopped by police
Officials do not always know about, or abide by, the more relaxed rules
"But this didn't work in the countryside. When I went to a village to do a story, I would be stopped anyway. My tapes would be confiscated and would be taken to the police station.

"When the Olympics arrived, despite the new rules, the Chinese government was so nervous that they tightened up control or made new rules.

"The authorities would also threaten interviewees. They would not stop me, but this was another tool to control us."


Local journalists were not affected by the change in regulations, but they, too, face restrictions in their work, especially when working for state-run news sources.

Chinese journalist working for state-run media

(who wishes to remain anonymous)

"The government's attitude towards the media has always been on a need-to-know basis.

"Officials feel that if they have something to say, they hold a press conference. They have no need to answer journalists' questions individually. They don't work to the media's timings.

"The Olympics itself will not bring changes overnight, regardless whether its for the foreign or domestic media. It is just one among many things that will only change gradually.

"The government has done things differently for the Olympics, but I can't say whether they will regress or keep improving things after the Games.

"All I can say is, I haven't seen much change in how I do my job."

Iran Security Council bid fails

Japan has been elected as a temporary member of the UN Security Council, defeating Iran for the Asian seat.

In the vote at the UN headquarters in New York, Japan received 158 votes and Iran received 32.

Turkey and Austria have been elected for the two European seats, defeating Iceland. Uganda and Mexico won their seats unopposed.

The five successful countries will take their seats at the Security Council on 1 January 2009.

They will replace South Africa, Panama, Indonesia, Italy and Belgium.

The BBC's Laura Trevelyan in New York says that Japan, as the second biggest contributor to UN funds, is well regarded and seen as a contender for a permanent Security Council seat.

Iran, however, has had Security Council sanctions imposed upon it over its nuclear programme.

Financial setback

In the race for the two European seats, Iceland was always the underdog but its financial collapse did not help, with diplomats saying that could well have cost it votes, our correspondent says.

As lobbying entered its final few hours, ambassadors described the atmosphere as feverish.

Countries deployed their foreign ministers to twist arms and shore up votes in the closing moments of the campaigns.

Temporary seats on the UN Security Council are highly sought after as countries get to impose sanctions, deploy peacekeepers and influence policy in trouble spots ranging from North Korea to Darfur.

All 192 member countries at the UN were eligible to vote.

Thai PM 'to stay' despite clashes

Thai Prime Minister Somchai Wongsawat has said he will stay in office despite calls for his resignation.

Mr Somchai spoke after thousands of Thais demonstrated in Bangkok, blaming him for the deaths of two protesters in clashes with police last week.

The army chief has hinted that the PM should step down over the deaths.

Protesters have been demanding the resignation of the government for weeks, saying it is too close to ousted former PM Thaksin Shinawatra.

Mr Somchai made the announcement after a hastily called meeting of the ruling party's coalition partners.

"The government has a duty to carry on the policies and tasks that are coming up," he told a news conference after the meeting, referring to a regional Asean summit in December, King Bhumibol Adulyadej's birthday and the funeral of a sister of the king.

'No legitimacy'

Pressure has been mounting on the prime minister to resign.

About 5,000 anti-government protesters stopped traffic in central Bangkok on Friday, distributing graphic photos and CDs showing wounds sustained by protesters in their clashes with police last week.

They held up placards calling the prime minister a murderer.

A small number of police kept their distance from the demonstrators.

Army commander Gen Anupong Paochinda
If I were the prime minister... I would definitely resign
Gen Anupong Paochinda

Two people died and nearly 500 people were hurt in last week's clashes outside parliament.

The police were accused of brutality for firing tear-gas grenades that blew off several people's limbs.

"The truth will show why the government has no legitimacy to run the country," said one of the protest leaders, Somsak Kosaisuk.

The protesters, led by the People's Alliance for Democracy (PAD), say the government is acting on the orders of Thaksin Shinawatra.

PAD protesters have occupied a central government complex for weeks, demanding the government's resignation.

Mr Somchai took office after the judiciary deposed Prime Minister Samak Sundaravej, an ally of Mr Thaksin, last month.

Mr Somchai is a brother-in-law of Mr Thaksin, who was overthrown in a military coup two years ago.

The army has promised not to launch another coup, but a statement on Thursday from Gen Anupong Paochinda was the strongest comment so far from the influential army leader about Mr Somchai.

Gen Anupong appeared on television saying: "If I were the prime minister, and a violent dispersal of protesters happened and caused loss of lives and resulted in injuries... I would definitely resign."

But he denied that the army was trying to pressure the government, and repeated his vow not to launch a coup.

The PAD has received support from another source. On Monday the country's queen and her youngest daughter attended the funeral of one of the protesters who died.

The entire traditional elite of Thailand appears to be ganging up against a government which still enjoys the support of millions of rural voters, says the BBC's Jonathan Head in Bangkok.

With the courts being urged to confiscate most of Mr Thaksin's assets, the aim seems to be to wipe out the foundations of his political power and ensure he cannot return to office, says our correspondent.

Cambodia PM plays down border row

Cambodian PM Hun Sen has played down the possibility of a full-scale war with Thailand, after the two sides exchanged fire across their border.

He said talks remained the best answer to the dispute around Preah Vihear temple, a UN World Heritage site.

Cambodian villagers flee Anlong Veng, in Cambodia near the border with Thailand Cambodia, following Wednesday's clash
Thousands of Cambodians have fled the area

Both sides have sought to ease tensions since at least two Cambodian soldiers were killed in Wednesday's crossfire.

They have agreed to a joint border patrol, but failed to reach a deal on reducing troop numbers.

"People should understand that there won't be any large-scale war taking place," Hun Sen told reporters after a weekly cabinet meeting.

"I would not call it a war. This was just a minor armed clash," he added.

He said there was no need for outsiders, such as the United Nations or the regional grouping Asean, to get involved in the dispute.

'Death zone'

The military stand-off began in July when Cambodian troops detained three Thai protesters who had entered the site illegally.

More than 1,000 soldiers from both countries moved into the area, digging trenches into the rough terrain around the temple.

Both sides agreed in August to withdraw their personnel, but last week Cambodia claimed that Thai troops had returned, and Hun Sen threatened to turn the area into a "death zone" if they did not withdraw.

The dispute centres on 1.8 square miles (4.6 sq km) of scrub near the 900-year-old Preah Vihear temple.

An international court awarded the temple to Cambodia in 1962, but land surrounding it remains the subject of rival territorial claims.

Disputes between the two countries date back centuries, when the Thai and Khmer monarchs fought each other for territory and power.

TEMPLE DISPUTE TIMELINE
1970s-1990s: Khmer Rouge guerrillas occupy site
2001-2002: Thai troops block access over water row
July 2008: Unesco lists temple as a World Heritage Site
July 2008: Thai FM quits after court rules he violated constitution for backing Cambodia's Unesco bid
July 2008: Both sides move troops to temple area
August 2008: Troops withdrawn after high-level talks
October 2008: Fighting erupts around temple area

Map of disputed area

US extends visa waiver programme

President George W Bush has announced that the United States is to cancel visa requirements for citizens of six European countries and South Korea.

Mr Bush said Latvia, Estonia, Hungary, the Czech Republic, Lithuania, Slovakia and South Korea would be added to the US visa waiver programme in a month.

The countries already allow US citizens to visit without requiring a visa.

Planes at Heathrow (file pic)
Access to passenger data remains a contentious issue

Access to personal data was a key consideration. Since the 2001 terror attacks the US has tightened its rules.

The US requires that members to its scheme issue their nationals with tamper-proof biometric passports, which are difficult to forge.

The waiver programme was initiated in 1986 "with the objective of eliminating unnecessary barriers to travel, stimulating the tourism industry," according to the State Department website.

The visa waiver programme has been under fire from some US lawmakers, who are concerned that militants who are citizens of the participating countries can obtain entry too easily.

N Korea 'puts back reactor seals'

North Korea has reversed recent steps it took to restart the Yongbyon plant, the main site of its controversial nuclear programme, US officials say.

State department spokesman Sean McCormack said Pyongyang had put back seals on its nuclear equipment and reinstalled surveillance devices.

The move comes days after the US removed North Korea from its list of countries sponsoring terrorism.

A file photo from February 2008 of a US inspector studying disabled nuclear equipment at Yongbyon plant in North Korea
North Korea agreed to halt nuclear activity in 2007

The blacklisting had led to deadlock over the country's nuclear disarmament.

"All the seals are back on, the surveillance equipment is back, reinstalled, and the equipment that had been removed is back where it had been," Mr McCormack said.

"In addition to that, they have removed more rods from the reactor."

But the spokesman said Pyongyang still had work to do on reprocessing and fuel fabrication.

Inspectors return

North Korea tested an atomic bomb in 2006, but six-nation talks between North and South Korea, the US, China, Japan and Russia led to an agreement for it to halt all nuclear activity.

The current dispute flared when the North barred inspectors from the International Atomic Energy Agency (IAEA) because it was still on the US list.

The US announced it was removing Pyongyang from the list last Saturday, after the two countries agreed on a series of measures to verify the North's nuclear programme.

The move was hailed by South Korea but criticised by Japan, which is seeking more information about Japanese citizens abducted by the North in the 1970s and 80s.

North Korea allowed the IAEA monitors back to Yongbyon on Tuesday.

IMF to investigate its director

The International Monetary Fund (IMF) is investigating whether its French director abused his power in an alleged relationship with a subordinate.

The IMF said the inquiry was instigated by a long-serving governing board member, Shakour Shaalan of Egypt.

In a statement Dominique Strauss-Kahn said he was co-operating with the inquiry but denied abusing his power, according to Reuters news agency.

Dominique Strauss-Khan
Mr Strauss-Kahn denies abusing his position

It comes as the world grapples with the worst financial crisis for decades.

The investigation is believed to centre on whether Mr Strauss-Kahn had a relationship with Piroska Nagy, until recently a senior IMF official.

It is to examine whether she got a larger severance package than would otherwise have been expected when she left the organisation in August.

The investigation is also looking at whether she was put under pressure to leave her job.

The IMF is currently receiving an increased number of requests for help from countries seeking to ease the effects of the global financial crisis.

US to host global finance summit

The presidents of the US, France and the European Commission have unveiled plans for a series of summits to discuss the global financial crisis.

Speaking before talks at Camp David with Nicolas Sarkozy and Jose Manuel Barroso, George W Bush said it was "essential that we work together".

The first summit will be held in the US after November's presidential election.

George W Bush, Nicolas Sarkozy and Jose Manuel Barroso at Camp David (18 October 2008)
The planned summits will "seek agreement on principles of reform"

The Europeans want the meetings to pave the way for talks on an overhaul of the world's financial regulatory systems.

Before he arrived at Camp David, Mr Sarkozy warned the world could not "continue to run the economy of the 21st Century with instruments of the economy of the 20th Century".

Calls for action

The BBC's Adam Brookes in Washington says that against the beautiful autumnal backdrop of Camp David, the presidential retreat in the state of Maryland, Mr Bush uttered words of cold comfort to his French counterpart and Mr Barroso.

"It is essential that we work together because we are in this crisis together," he said.

Mr Bush went on to invite world leaders to a global economic summit in the US soon to talk about the global response to the financial crisis and how to avoid others in the future.

"Together we will work to modernise and strengthen our nations' financial systems so we can help ensure this crisis doesn't happen again," he added.

But Mr Bush asserted that any plan to re-think the mechanisms of the global financial system could not be allowed to undermine the free market.

"As we make the regulatory and institutional changes necessary to avoid a repeat of this crisis, it is essential that we preserve the foundations of democratic capitalism - a commitment to free markets, free enterprise and free trade."

'New order'

President Sarkozy seemed to have a rather more sweeping vision to deal with what he called a "worldwide crisis", our correspondent says.

He said that he and Mr Barroso came with a mandate from the 27 nations of the European Union, adding that the crisis could offer a "great opportunity" to build the capitalism of the future and leave behind the "hateful practices" of the past.

"We cannot continue along the same lines because the same problems will trigger the same disasters," he warned.

Mr Sarkozy said the hedge funds, tax havens and financial institutions operating without supervision should all be re-thought.

"This is no longer acceptable," he added. "This is no longer possible... This sort of capitalism is a betrayal of the sort of capitalism we believe in."

Mr Barroso said European nations had taken swift and concerted action to tackle the squeeze in the financial markets, but stronger and more effective global action was now required.

"We need a new global financial order," he added.

Details are still to be worked out about the series of summits, but in a joint statement issued after their meeting at Camp David the three leaders announced that the first would be held soon after the US presidential election on 4 November.

British economist John Maynard Keynes addresses the Bretton Woods conference in July 1944
A global summit would echo the Bretton Woods conference in 1944

That summit would seek to "review progress being made to address the current crisis and to seek agreement on principles of reform needed to avoid a repetition and assure global prosperity in the future," the statement said.

"Later summits would be designed to implement agreement on specific steps to be taken to meet those principles," it added. Other world leaders are to be consulted over the plan.

UN Secretary General Ban Ki-moon has proposed using the organisation's headquarters in New York as a possible venue. Mr Ban said on Saturday that he agreed on the need to swiftly stage a meeting, "in early December at the latest".

Correspondents say such a meeting would echo the Bretton Woods conference of 44 nations after World War II, which established many of the institutions and monetary systems that are now under threat.

At Bretton Woods, world leaders agreed to establish the International Monetary Fund and the International Bank for Reconstruction and Development, the original institution of the World Bank Group, in an effort to prevent a repeat of the depression of the 1930s.

'Big enough and bold enough'

Earlier on Saturday, in his weekly radio address, Mr Bush sought once again to reassure Americans about the government's $700bn bail-out of US financial institutions, which includes a $250bn scheme to buy stakes in leading banks.

Elements of the plan are similar to those earlier announced by European governments.

"The federal government has responded to this crisis with systematic and aggressive measures to protect the financial security of the American people," the president said.

"These actions will take more time to have their full impact. But they are big enough and bold enough to work."

The BBC's Jane O'Brien in Washington says European leaders have in the past blamed the US for the global financial crisis, which started when high-risk borrowers began defaulting on their mortgages.

But she adds that Mr Sarkozy, whose country currently holds the EU presidency, has made it clear he wants to move away from finger-pointing and towards a partnership with the US to overhaul the world financial system.

Russia fleet 'may leave Ukraine'

Russia's deputy PM has told the BBC the country's Black Sea Fleet will vacate its naval base in Sevastopol in 2017 if the Ukrainian government demands it.

Speaking exclusively to Panorama, Sergei Ivanov said Russia would seek to renew its lease on the Crimean port, but will move the Fleet if it cannot.

Ships from Black Sea Fleet
The Black Sea Fleet has been in Sevastopol for over 200 years

The move will anger nationalists who consider Sevastopol a part of Russia.

It is feared the port could become a flashpoint in already strained relations between Russia and the West.

Asked if he could envisage the Fleet not being based in the Crimea - its home for the last 225 years - Mr Ivanov, Prime Minister Vladimir Putin's number two who oversees Russia's military and industry, said:

"Yes I can imagine that easily after 2017. Why not, if the Ukrainian government then in power decides not to prolong the lease?"

It will also surprise the West where in the wake of the war in Georgia many fear Moscow could seek to reclaim parts of the Crimea by force to secure the Fleet's future.

'British and US aggression'

Mr Ivanov however dismissed such claims as Cold War-style propaganda and gave Russia's strongest assurances to date that it has no territorial ambitions.

"We are not aggressive," said Mr Ivanov. "We have recognised the territorial integrity of all former Soviet republics. That was in 1991. Russia, of course, has no territorial ambitions regarding any former Soviet countries."

Sergei Ivanov (left) and Mark Franchetti
Mr Ivanov spoke out against Nato expansion

"We are not going to start a war or attack any country. Right now, in fact, Russia does not fight any war at all. If you analyse how many wars the United States and Britain are fighting - it's quite different," he added.

The future of the Black Sea Fleet in Sevastopol is a sensitive and emotional issue for most Russians.

The Crimea was handed over to Ukraine during Soviet times when the transfer was a mere legal technicality - and no-one envisaged the collapse of communism and Ukraine's subsequent independence from Moscow.

Local opposition

In Sevastopol, most locals feel closer to Moscow than Kiev, the Ukrainian capital.

They would like to see the peninsula returned to Russia and are bitterly opposed to the possibility of the Black Sea Fleet leaving. Some would be prepared to take up arms to prevent that from happening.

Asked what would happen if the Ukrainian government kicked out the Fleet after 2017 despite strong local opposition, Mr Ivanov, who spent 20 years in the KGB and was defence minister for six years, said:

"I love Crimea and even have relatives there but that is Ukraine's problem, not Russia's."

Despite the conciliatory tone, which comes as Russia seeks to rebuild its relations with the West in the wake of the war in Georgia, Mr Ivanov mounted a robust defence of Russian action in the tiny state and strongly criticized Nato's expansion eastwards.

Missile shield

He also dismissed America's claims that its plans for a missile defence shield in Europe are to protect it from Iran and North Korea.

He said Russia sees the shield - parts of which are to be stationed in Poland and the Czech republic - as a threat to Russia.

Mr Ivanov warned that Russia would react militarily if the plans went ahead, but also rubbished a previous threat made by a Russian general who said Poland was exposing itself to a possible nuclear strike if it agreed to station parts of the shield on its territory.

Russian troops dismantle a checkpoint near South Ossetia. Photo: 7 October 2008
Since the conflict in Georgia, Russia's relations with the West have worsened

"Russia will definitely react, because we can't just not react," said Mr Ivanov, who as a teenager spent several weeks studying English in London.

"A new potential military will in several years be present, very close to our borders, only 300 kilometres away. But that doesn't mean of course that we are planning a new nuclear attack on the Czech Republic or Poland. That's total rubbish."

"There are still many Cold War warriors. Many Brits and Americans who still think that all Russians are drunk and treacherous, and that we spend our time thinking how to attack the West. That's part of old-style Cold War propaganda. There's too much mistrust. The wall should go. That's my favourite Pink Floyd song."

Misunderstanding

Mr Ivanov's message reflects the general mood in Russia - which Monday's Panorama seeks to test.

Nearly 20 years since the end of the Cold War, Russians feel let down by the West. Gone is the early euphoria. Instead most Russians now feel encircled by the West as a result of Nato's enlargement and are convinced the West wants Russia to be weak.

They also feel misunderstood by the West and argue that we are the true Cold War warriors, not them.

Russian nationalists in Sevastopol
Russian nationalists have threatened to use force to ensure the Fleet stays

Many abroad vilify Mr Putin - who led Russia as president for eight years and remains its most powerful man despite stepping down and becoming prime minister. By contrast he is genuinely popular among most Russians. In the wake of the war in Georgia, relations between Russia and the West are at their lowest since the collapse of the Berlin Wall. Talk of a new cold war is exaggerated but as our investigation demonstrates, far from narrowing, the gulf in understanding between East and West is deepening.

"Yes Russia is in many ways its own worst enemy," said Vladimir Pozner, a Soviet propagandist during Communist times who is now one of Russia's sharpest commentators.

"But there are far too many things the West does not get about Russia. Most of all it does not want to understand that if you are a country which has never had democracy in its entire history then you cannot expect it in the space of 15 or 20 years to go 'Bingo - we're now democratic'. It's going to take generations. This country is still run by people who grew up in Soviet times."

Vladimir Putin
Despite stepping down as president, Vladimir Putin is still the strongman

"Give this country a break. Let the Russians evolve and don't put that much pressure on them because if you do you'll bring out the worst. You'll bring out the super patriots who will say: 'You see, we told you can't trust the West'."

It is a warning echoed less diplomatically by one of Mr Putin's greatest admirers - Nikita Mikhailkov, the most powerful figure in Russia's film industry who is a personal friend of the prime minister.

"You don't like me, Englishman," he told Panorama. "You haven't liked me for centuries, but I respect you. I want to engage with you, but on equal terms. I want you to respect me as I respect you."

"Russia must be respected, not least because it's strong and can answer back. It can say no, you want to talk let's talk. You want to fight, let's fight. But then don't complain."