A Reclusive Billionaire Gives Away His Fortune

One by one, speakers rose to toast the elderly gent with baggy pants and a shy, gaptoothed smile.

"Of course, he didn't wear a tie tonight," teased one. Another called attention to the honoree's cheap watch and the plastic bag that serves as his briefcase. The joshing at a Manhattan gathering would have been nothing out of the ordinary except that the man pulling a worn blue blazer over his head in mock modesty was none other than the onetime billionaire, Chuck Feeney.

Never heard of him? No surprise there.

Over the years, the frugal 76-year-old has made a fetish out of anonymity. He declined to name his foundation, Atlantic Philanthropies, after himself, registering the $8-billion behemoth in Bermuda to avoid U.S. disclosure laws. He lavishes hundreds of millions of dollars on universities and hospitals but won't allow even a small plaque identifying him as a donor.

"We just didn't want to be blowing our horn," he explains in a rare interview at his daughter's Upper East Side apartment. The party was to celebrate a biography of the elusive tycoon by Irish journalist Conor O'Clery, titled "The Billionaire Who Wasn't: How Chuck Feeney Secretly Made and Gave Away a Fortune," published last fall.

Feeney said he cooperated with the book and submitted to an interview because he is driven by a new public mission: nudging hedge fund heavies and silicon scions into "giving while living." It is the latest trend in philanthropy and one that he, more than anyone, jump-started several years before billionaires like Bill Gates and Warren E. Buffett followed suit.

Feeney, a founder of the conglomerate Duty Free Shoppers, said he wants to "set an example" to address "that layer up there of people," the ones, as he puts it, who have "a jillion dollars. . . . I mean, honestly, if you ask them, 'Tell me what you're doing with your money this week?' they couldn't spend a fraction of what they're accruing." Most foundations, set up after the donor's death, dribble out barely more than 5% of their assets each year, the legal minimum.

But Feeney, raised in a blue-collar Irish Catholic family in New Jersey, quietly transferred the bulk of his fortune to his foundation when he was 53. Then, eight years ago, he instructed his board to pay out every last dollar by 2016. So far: $4 billion down, $4 billion to go. Atlantic Philanthropies is spreading its wealth at the rate of more than $400 million a year, more than any U.S.-based family foundation apart from Bill & Melinda Gates and Ford.

As Feeney sees it, there is too much misery in the world to justify delay. "I'm not going to die until I can spend it," he vows with a merry chuckle. Feeney's biggest beneficiary has been Cornell University, which he attended on the GI Bill, earning spending money by selling sandwiches to fraternities. Over four decades, he has donated an astonishing $588 million to the Ithaca, N.Y., campus, almost all of it anonymously.

Many of Feeney's grants are still directed to traditional bricks and mortar -- $60 million for a Stanford biomedical center and $125 million for a UC San Francisco cardiovascular complex. But others are iconoclastic: Fighting homophobia among South African Muslims. Lobbying against the death penalty in New Jersey. Buying medical supplies for Cuban-trained doctors. Funding a Washington office for Sinn Fein during the Irish peace negotiations.

Feeney built his global enterprise through cutthroat competition and uncanny business intuition. He speaks fluent French and Japanese. And he still hop-scotches from Dublin to Da Nang seeding new projects.

But his demeanor is affable and unprepossessing and his conversational style is hesitant. He is allergic to introspection. Direct questions send him into vague digressions leavened with humorous asides. In the tiny world of stratospheric wealth, Feeney is a man of yin and yang: extravagant charity coupled with personal penny-pinching. "It's the intelligent thing to be frugal," says the erstwhile billionaire, who jokingly refers to himself as "the shabby philanthropist."

He once owned six luxurious homes from the French Riviera to Mayfair to Park Avenue. These days, he owns none, instead hunkering down in a cramped one-bedroom rental in San Francisco with his second wife, Helga, his former secretary. He raked in billions selling duty-free cognac, perfume and designer labels. But you won't catch Feeney in a Hermes tie or Gucci loafers. He once met the prime minister of Ireland with his drugstore glasses held together by a paper clip.

Feeney doesn't own a car and prefers buses to taxis. Until he turned 75, he flew coach. Now, making excuses for wobbly knees, he upgrades with frequent flier miles. Fine dining? "There are restaurants you can go in and pay $100 a person for a meal," he muses. "I get as much satisfaction out of paying $25. I happen to enjoy grilled cheese and tomato sandwiches."

Niall O'Dowd, a friend of Feeney and editor of Irish-America magazine, reflects: "The way he copes with his wealth is to never remove himself from his working-class persona. He keeps grounded by acting like it hasn't happened to him -- like basically he is still the same guy." At the book party, most of the guests were bused in from the Garden State: former classmates from St. Mary's of the Assumption High School and an extended clan of Feeney-Fitzpatricks, including two of his five children.

Feeney joked about his "rent-a-crowd" but, amid the toasts and roasts, seemed moved: "Who was it who said, 'My cup runneth over?' " He planted a kiss on the head of his 21-year old great-nephew, Dennis Fitzpatrick, who has cerebral palsy and uses a wheelchair. He autographed copies of the book while seated at a small table with Dennis by his side.

"He'd send my parents $50,000 for our college educations," nephew Daniel Fitzpatrick, 50, recalled. "But if you went out to have a beer with him, he'd check the bar bill. . . . If I left the light on in a bedroom, he'd say, 'By the way, you left a light on.' And I knew I'd better go up and turn it off."

O'Clery, former international business editor of the Irish Times, spent two years traveling with Feeney and investigating a financial empire that had been sheathed for decades in obsessive secrecy. He unfolds a story of ferocious entrepreneurship that operated, he concluded, "on the edge of legality but was never corrupt." Shortly after graduating from college, Feeney, who had served in the U.S. Air Force in Japan during the Korean War, moved to Europe. With a partner he knew from Cornell, Robert Miller, he began peddling duty-free liquor to sailors.

The two went on to sell cars to American soldiers based in Europe and Asia. Eventually, profiting from a postwar boom in tourism, they built Duty Free Shoppers into the biggest retailer of liquor and cigarettes in the world and a global purveyor of luxury goods. Their ingenious schemes stretched the limits of the duty-free concept. As O'Clery explains, Duty Free Shoppers allowed a tourist in Mexico, for instance, to peruse a catalog and choose a cashmere sweater to be shipped from Amsterdam to his home in the U.S. Leaving Mexico, he could declare the faraway sweater as "unaccompanied baggage" and avoid paying duty. Feeney and Miller operated with Swiss bank accounts and offshore headquarters in Lichtenstein, Monaco and the Netherlands Antilles. They registered assets in the names of Danielle, Feeney's French wife, and Miller's Ecuadorean wife, Chantal, as a precaution against the long arm of the U.S. Internal Revenue Service.

Today, Feeney makes no apologies. "Most large companies structure their affairs so that they minimize their tax payments," he says, rocking back on an armchair in his daughter's apartment. "As long as you do it within the law, it's OK." For Duty Free Shoppers, publicity was to be avoided at all cost, to ward off not just tax collectors but also competitors. "If you had a machine to make money, you wouldn't blow your horn and say copy me, copy me," says Feeney, whose annual share of dividends from the business reached $155 million in 1988, making him richer at the time than Rupert Murdoch, David Rockefeller or Donald Trump.

Why did he decide to give it away, leaving himself with a net worth then that dipped below $1 million? "I'm an easygoing guy," he shrugs. "I like to eat my grilled cheese and tomato sandwiches quietly. I don't like people to say, 'Look over there; he's eating a grilled cheese and tomato sandwich.' " In 1990, Feeney had separated from Danielle. And, in the divorce, she retained their mansions and luxury apartments, along with $100 million. "The wealth got to him," recalls his nephew, Fitzpatrick. "He got disgusted by it, in my opinion. He said, 'This expensive heavy-duty lifestyle doesn't fit me.' "

Feeney gave his children, friends and colleagues copies of Andrew Carnegie's 1889 essay "The Gospel of Wealth," in which the robber baron-turned-philanthropist admonishes rich men to use their fortunes to help others and "to set an example of modest unostentatious living, shunning display." In the realm of modesty, Feeney tended to extremes. For years, Atlantic Philanthropies staff couldn't tell their families where they worked. Beneficiaries, few of whom knew the origin of their grants, signed agreements acknowledging that the funding would halt if its source were revealed.

It was only in 1997 that the existence of Atlantic Philanthropies became public during the sale of Duty Free Shoppers to French luxury goods magnate Bernard Arnault. Court papers revealed that Feeney's share of the company had been transferred to a foundation. The news that a huge donor had surfaced -- bigger than renowned charitable institutions founded by the Pew, Lilly, MacArthur, Rockefeller and Mellon families -- rocked the philanthropic world, although many had long suspected something was afoot.

Today, though Atlantic Philanthropies lists its grants on its website, it still won't issue news releases touting accomplishments. Black tie thank-you dinners, along with plaques, remain verboten. Feeney's practical reason for not plastering his moniker on buildings is to attract matching donors who would want naming rights -- as was the case at Stanford with high-tech tycoon Jim Clark and at a UC San Francisco cancer facility with venture capitalist Arthur Rock.

Does Feeney have no ego, then? "It doesn't matter who put the building up," he says. "The important thing is that it happens." In Vietnam, he recounts with a chuckle, "the people at the Da Nang General Hospital felt so bad that we wouldn't put our name on the hospital that they painted it green" -- shamrock green. He pauses, adding, "Which used up a lot of paint."

Although his parents were American-born, Feeney's attachment to the land of his ancestors runs deep. The Republic of Ireland in the 1980s was plagued by high unemployment, a brain drain and the festering guerrilla war to the north. Anonymously, Feeney began pouring money into renovating Ireland's seven universities, along with two in Northern Ireland.

He offered $125 million for postgraduate research if the Irish government would match the amount, nearly 20 times what the Republic was spending a year. Soon, Ireland's best and brightest flocked to the new research institutes. In all, Atlantic Philanthropies has spent more than $1 billion in Ireland.

In 1993, O'Dowd, who had worked with Feeney to promote U.S. naturalization for Irish immigrants, asked him to join in what would become the Connolly House Group, named after the Belfast headquarters of Sinn Fein, the political arm of the Irish Republican Army. The small, secret group of Irish Americans offered the newly elected Clinton administration a back-channel to negotiate a cease fire between Britain and the Irish Republican Army.

"At the time, it was risky business to be seen 'talking to terrorists'--that was the label," said former Rep. Bruce Morrison, one of the group. Feeney was intensely involved in the negotiations that led Clinton to grant a visa to Sinn Fein leader Gerry Adams, and he funded a Washington office for Sinn Fein to the tune of $750,000.

"It was New Jersey working class meets Belfast working class," O'Dowd recalled of a secret meeting between Feeney and Adams in a Dublin safe house. "These two guys understood each other right away." The peace process was ultimately successful, and Feeney has since funneled millions into reconciliation programs in Northern Ireland. "The only way you're going to solve things with your friends or enemies is to sit down and talk to them," he says today. "It didn't seem right to me that Irish people were killing Irish people."

On the coffee table in his daughter's living room, Feeney opens Bill Clinton's recent bestseller "Giving." He turns to the chapter "How Much Should You Give and Why?" and reads from statistics derived from U.S. income tax data showing that if the top 14,400 taxpayers gave a third of their income, the total would be about $61 billion.

Feeney shakes his head. "People who wouldn't miss it," he muses. "Sixty-one billion in one year!" And why isn't it happening? "People traditionally collect money. I guess there is an attraction to be known as a wealthy person," he says. "It's not my role in life to tell them what they should be doing. . . . I'm just convinced if people gave money to things they've identified as being in the public interest, they'd get great satisfaction out of it."

Feeney mentions one of his favorite charities, Operation Smile, which sponsors surgeons to operate on children with cleft palates in developing countries. He tells of watching a little girl in a waiting room sitting with her hands covering her mouth. "I kept an eye on her," he recalls. "After she had the operation and she was smiling [like], 'It's not the ugly me you knew before. It's the new me.' "

On another occasion, he says, a man in a restaurant called him over and said, "Do you realize you educated me in this business? I had one of your scholarships . . . and here I am now, the general manager of this chain. " O'Clery, who hung out with Feeney for several years at P.J. Clarke's, the Manhattan pub, before broaching the topic of a book, attributes Feeney's generosity to growing up with charitable parents and in a neighborhood where people helped one another.

He calls his subject an "enigma. . . . He likes to make money, but he doesn't like to have it. He travels all over the world, but in a way, he's never left Elizabeth, N.J." Feeney suggests with a cryptic smile, "There's a thin line between sanity and the other side. Some people might even say the idea of giving money away is crazy."

For those folks, Feeney has a Gaelic proverb: "There are no pockets in a shroud."

Related Articles:

http://globalblognetwork.blogspot.com/2009/07/richard-branson-kiteboarding-with-naked.html

http://globalblognetwork.blogspot.com/2009/06/bill-clinton-debuts-as-new-un-special.html

Source:

http://articles.latimes.com/2008/mar/08/local/me-feeney8

Tags:

LA Times, Atlantic Philanthropies, Duty Free Shoppers, Chuck Feeney, Bill Gates, Warren E. Buffett, founder of the conglomerate Duty Free Shoppers, Irish Catholic, Cornell University, Bernard Arnault, IRA, Sinn Fein, Korea, Japan, Vietnam, Global Best Practice,

Posted via email from Global Business News

Italy Intercepts Billions in Fake Treasuries From Japanese

Ever since two middle-aged men with Japanese passports were caught in Italy this month trying to smuggle a purported $134.5 billion in United States government bearer bonds into Switzerland, the Internet has been abuzz with theories.

Was the Japanese government, or some other creditor nation, secretly trying to dump Treasury bonds to drive down the value of the dollar? Had the Italian mafia stolen the equivalent of 1 percent of the American gross domestic product, using the paper, which supposedly was instantly convertible into cash, to run a giant scam?

Adding spice was the whole Bond — James Bond — aspect of the tale. A crowded customs checkpoint near the Alps; two men traveling on a local train, professing that they had nothing to declare; and a false-bottom suitcase containing United States government bonds made out in stratospheric denominations.

In all, the Italian financial police and customs guards confiscated 249 paper bonds, each supposedly worth $500 million, and 10 bonds with a face value of $1 billion each.

Too bad the bonds were fake.

“The whole thing is a total fraud,” Stephen Meyerhardt, a spokesman for the Treasury Department, said Thursday. “They don’t look anything like real securities, which in any case were never issued in any of those denominations.”

The highest denomination ever issued by the Treasury Department was $10,000, he said. The Italian financial police claimed some of the paper was “Kennedy bonds” from the 1930s, but no such bonds ever existed. And the total of Treasury bearer bonds still outstanding is a mere $105 million; the Treasury has been issuing bonds in electronic form since 1986.

But none of this has stopped the rumor mill from grinding away. After reports of the seizure began to trickle out of Italy, the blogosphere sprang into action, the ponderings fueled by suspicions that the mainstream media was willfully ignoring the tale.

The story took on greater life after Italian authorities — who have refused to talk about the scandal — declined to declare the bonds fakes until they were examined by Washington. After all, although the Guardia di Finanza suspected the bonds were false, if they were not, the Italian treasury stood to profit from a law that permits the government to pocket up to 40 percent of the total value of cash or securities smuggled into the country over the legal export limit, which is 10,000 euros.

Repeated telephone calls to the prosecutors’ office in Como, Italy, that is handling the investigation were not returned.

Darrin Blackford, a spokesman for the United States Secret Service, which was contacted by the Italian financial police and the prosecutor’s office to determine the “legitimacy of the seized financial instruments,” said that his agency had verified the bonds were “fictitious instruments and were never issued by the United States government.”

Col. Rodolfo Mecarelli, the provincial commander of the financial police in Como, said the investigations were focused on “understanding who these men were and where they were from.”

Or where they might have been going. “Switzerland may not have been their final destination,” he said in a recent interview. “They could have taken a plane anywhere.”

Also unknown are the whereabouts of the two men, who were released after being stopped in early June. Italian law does not call for the criminal arrest of persons found to be taking funds without permission to another country. It might have been another matter if the police had determined immediately that the bonds were false.

“The men were questioned, but not arrested,” said Naoki Oyakawa, an official at the Japanese consulate in Milan, which contacted judicial officials in Como after reading about the seizure in the Italian papers.

He said the two men had valid Japanese passports, but he would not elaborate further on their identities. “We don’t know where they are now,” he said. “We have had no contact with the two men. They have not asked us for our help.”

What the bonds were for remains unclear. “It’s not the sort of thing that you can just go into a bank and convert,” said Colonel Mecarelli. “But they may have been useful to guarantee business deals among people who don’t use cash.”

Agencies that deal with financial crimes, including Europol, declined to comment while the Italian investigation was still under way. The Treasury Department says it is stumped, too. “I can’t speak to the motives of the person or persons who tried to do this,” Mr. Meyerhardt said. “I would guess that they were trying to find someone foolish enough to buy the securities for real money.”

Source: http://www.nytimes.com/2009/06/26/business/global/26fake.html?_r=1&partner=rss&emc=rss

Tags: Italy, Japan, USA, Fake US Treasuries, Colonel Mecarelli, Kennedy bonds, Switzerland, Como, US Treasury Department, Milan, US Secret Service, James Bond, Global Economic News,

Posted via email from Global Business News

N Korea Defiant After New Sanctions

North Korea has warned that it will increase its nuclear activities and could launch military action against the US and allies after the UN Security Council announced new sanctions over last month's atomic test. North Korea's foreign ministry said it will regard any attempts to impose a blockade against it as an "act of war", the state-run KCNA news agency reported on Saturday.

"We'll take firm military action if the United States and its allies try to isolate us," the unnamed foreign ministry spokesman was quoted as saying. The UN resolution, passed on Friday, banned all weapons exports from North Korea and authorised member states to inspect sea, air and land cargo, requiring them to seize and destroy goods that violate the sanctions. The UN resolution was passed as media reports suggested that North Korea could be planning a third nuclear test.

Enrichment Programme

But North Korea remained defiant, pledging to start a uranium enrichment programme for a light-water nuclear reactor. The foreign ministry spokesman also warned that the North would "weaponise all plutonium [in its possession]" and had "reprocessed more than one-third of our spent nuclear fuel rods."

Alexander Neill, the head of the Asia security programme at the Royal United Services Institute for Defence Studies in the UK, told Al Jazeera that while the warning is "bluster", it is also a serious threat. "This [threat of enrichment] is not a new phenomenon," Neill said. "It would take a long time and sophisticated technology to convert plutonium to missile-grade material, but it is a gesture with a lot of teeth behind it. "When it comes to the international reaction, the only option is for the UN Security Council resolution. "It is almost certain that the US and Japan will enforce a blockade which will put a pincer movement around any of the sea trade going in and out of North Korea.

"The question is whether it will have any result inside North Korea. The regime has proved resilient to sanctions in the past," he said. Hillary Clinton, the US secretary of state, said on Saturday: "The North Koreans' continuing provocative actions are deeply regrettable'. "They have now been denounced by everyone, they have become further isolated, and it is not in the interest of the people of North Korea for that kind of isolation to be continued."

'Firm Opposition'

North Korea's nuclear test in May defied a previous Security Council resolution adopted after the North's first underground nuclear test in October 2006. Zhang Yesui, China's UN ambassador, said the resolution showed the "firm opposition" of the international community to North Korea's nuclear ambitions. The backing of China, one of North Korea's key trading partners and regional allies, and Russia for the resolution gave greater weight to the new sanctions as they have been reluctant to act in the past.

"To a certain extent, China has been happy to leave North Korea to its own devices," Al Jazeera's Tony Cheng, reporting from Beijing, said. "Now China is profoundly concerned about the regime in Pyongyang, which seems increasingly unstable and seems increasingly not to follow Beijing's lead." Japan is expected to impose its own sanctions on North Korea, including suspending all trade, in a largely symbolic demonstration of its opposition to the test, the Kyodo news agency reported.

'Tightening Sanctions'

Al Jazeera's Cheng said that it was difficult to judge what effect the new sanctions would have on the already impoverished state. "This is really just tightening sanctions that already exist on North Korea, but they do target it in specific areas," he said.

"I think that one area that will hurt quite a lot will be the ban on conventional weapons arms sales and the possibility of stopping ships going to and from North Korea ... that is a business that could earn Pyongyang as much as $100m." Jamie Metzl, the executive vice-president of the Asia Society, said North Korea had exported arms to about 20 countries in the past, including Iran, Egypt, Pakistan, Myanmar, Zimbabwe and Sudan.

"Their finances are in big trouble. They have almost nothing that anybody else wants to buy but these arms," Metzl said. The UN vote comes amid continuing tensions on the Korean peninsula after North Korea on Thursday demanded a 3,000 per cent increase in rent and a 400 per cent increase in wages for 40,000 workers employed by South Korean companies at an industrial park in the North Korean border town of Kaesong.

North Korean state media issued a statement on Thursday saying that relations between the two countries had reached the "phase of catastrophe" and that the Kaesong complex had been "thrown into a serious crisis".

Source: http://english.aljazeera.net/news/asia-pacific/2009/06/200961361534368421.html

Tags: Kim jong il, Kim jong un, USA, China, Russia, UK, France, UN Security Council, Sanctions, Nucelar reactors, Nuclear Weapons, Global Development News, Hillary Clinton, Kaesong industrial Park, South Korea, Japan, Kyodo,

Posted via email from Global Business News

Security Council Set to Tighten Sanctions on North Korea

UNITED NATIONS — The Security Council’s five permanent members agreed on Wednesday on a draft resolution that would ratchet up sanctions against North Korea by concentrating on its financial transactions and its arms industry, including allowing for inspections of its cargo vessels on the high seas.

The sharply worded resolution, while diluting some of the sanctions sought by the West and Japan, would still serve notice on North Korea that its nuclear and other weapons programs had created sufficient alarm to forge a rare unified front among the world’s major powers.

Written by the United States, the resolution came after more than two weeks of negotiations among the five permanent members — China, Russia, the United States, Britain and France — as well as with Japan and South Korea. It was presented to the full Security Council on Wednesday, and although no timetable for a vote was announced, it could come as early as Friday. Given its supporters, the measure seems assured of passing.

Vitaly I. Churkin, the Russian ambassador, told reporters, “Having sanctions and things like that is not our choice, but a certain political message must be sent, and some measures must be taken, because we are facing a very real situation of proliferation risks.”

North Korea did not react immediately, although its reclusive government has said in the past that ship inspections or other intrusive steps would be considered acts of war. If the resolution is approved, the next hurdle will be ensuring its highly technical provisions are all carried out. Not all resolutions are equally respected by United Nations member states, and, as Ambassador Jorge Urbina of Costa Rica noted, the draft resolution is complex.

The biggest question mark involved China, which has been reluctant to deploy the full weight of its influence on North Korea out of fear of destabilizing it amid a leadership transition. But various analysts suggested that it would not have publicly backed such sanctions unless it was serious about responding to North Korea’s underground nuclear test on May 25.

“They are deeply troubled by North Korean actions,” Jonathan D. Pollack, a professor of Asian and Pacific studies at the Naval War College, said in a telephone interview from Beijing.

The nuclear test followed a series of confrontational actions taken by the North, largely reversing every step it had taken to abandon its nuclear program in recent years.

“It is important for there to be consequences, and this sanctions regime, if passed by the Security Council, will bite and bite in a meaningful way,” said Susan E. Rice, the American ambassador, who shepherded the resolution through the negotiations.

The United States and its allies had wanted the draft resolution to include mandatory cargo inspections, if there was reasonable suspicion that the cargo was weapons-related — something Washington had been seeking outside the United Nations during the Bush years through its Proliferation Security Initiative. But China and Russia balked at mandatory inspections. In a compromise, the resolution requests that states inspect ships on the high seas. If the country where the ship is registered decided to reject an inspection in international waters, then the country would be required to direct the vessel to a nearby harbor for an inspection. If neither happened, the episode would be reported to the Security Council’s sanctions committee. The resolution also suggests that states should cut off “bunkering” services, like refueling, for North Korean vessels.

It is assumed that North Korea would balk at any inspections of its ships, analysts noted, and the resolution does not come under a United Nations provision that would allow the use of force as the ultimate fallback. The sanctions basically fleshed out measures that were first listed in a Security Council resolution passed after North Korea’s first nuclear test in 2006. They were never enacted, because the North agreed to participate in talks to dismantle the program.

The draft resolution condemns the latest North Korean nuclear test, demanding that North Korea conduct no more tests and that it suspend its ballistic missile program and rejoin the Nuclear Nonproliferation Treaty. The theme salted throughout the resolution is choking off anything that might feed the country’s nuclear and weapons programs, including a complete arms embargo, with the exception of small weapons.

Arms generate significant earnings for North Korea, Ms. Rice said, “and we think it important that that source of revenue be entirely curtailed.”

Analysts said the proposed sanctions with the most bite might be the financial ones. They called upon member states to cut off financial services related to the North’s nuclear and weapons programs, to avoid any new grants or loans to the country and to halt other trade support like export credits. Financial transactions for humanitarian or development purposes would be allowed.

William H. Tobey, the former senior Bush administration official for nuclear nonproliferation, who is now at Harvard’s Belfer Center, said that North Korea imported about $3 billion in goods annually, $2 billion of it from China. It exports about $1.5 billion legally, so it needs significant credit to make up the difference. “It would put a significant crimp in their ability to import,” he said of the financial sanctions.

In recent years, efforts to sanction rogue states like Zimbabwe have foundered on the split between Russia and China, on one side, and Western nations on the other. The fact that all five permanent Security Council members agreed on the draft showed how seriously they viewed the gradual global decay in the nuclear nonproliferation treaty — a message aimed not only at North Korea but at other countries suspected of trying to develop nuclear weapons, like Iran.

“They have to get North Korea right, because it has implications for the entire nonproliferation regime,” said Robert C. Orr, the United Nations assistant secretary-general for policy planning.

Source: http://www.nytimes.com/2009/06/11/world/asia/11korea.html?partner=rss&emc=rss

Tags: UN, United Nations, UN Permanent Security Council, China, Russia, USA, Britain, France, Global Economic News, North Korea, South Korea, Japan, Nuclear weapons, Economic Sanctions, Croatia, Costa Rica, Vitaly Churkin, Robert C Orr,

Posted via email from Global Business News

Japan Explores Using Cell Phones To Stop Pandemics

TOKYO - A few months from now, a highly contagious disease will spread through a Japanese elementary school. The epidemic will start with several unwitting children, who will infect others as they attend classes and wander the halls.

If nothing is done, it will quickly gain momentum and rip through thestudent body, then jump to parents and others in the community. But officials will attempt to stymie the disease and save the school — using mobile phones.

The sickness will be a virtual one, in an experiment funded by the Japanese government. A subsidiary of Softbank Corp., a major Japanese Internet and cellular provider, has proposed a system that uses phones to limit pandemics.

The exact details have yet to be fixed, but Softbank hopes to pick an elementary school with about 1,000 students and give them phones equipped with GPS. The locations of the children will be recorded every minute of the day and stored on a central server.

A few students will be chosen to be considered "infected," and their movements over the previous few days will be compared with those of everyone else. The stored GPS data can then be used to determine which children have crossed paths with the infected students and are at risk of having contracted the disease.

The families of exposed students will be notified by messages to their mobile phones, instructing them to get checked out by doctors. In a real outbreak, that could limit the rate of new infections.

"The number of people infected by such a disease quickly doubles, triples and quadruples as it spreads. If this rate is decreased by even a small amount, it has a big effect in keeping the overall outbreak in check," said Masato Takahashi, who works on infrastructure strategy at Softbank.

He demonstrates with a calculation: If an infected person makes about three more people sick per day, and each newly infected person then makes another three people sick, on the 10th day about 60,000 people would catch the disease. If each sick person instead infected two people a day, on the 10th day about 1,500 people would get sick.

The experiment was conceived before the current outbreak of swine flu, but has drawn fresh attention now that Japan has the highest number of confirmed cases outside of North America.

It is one of 24 trials the government recently approved as part of a program to promote new uses for Japan's Internet and cellular infrastructure. The country boasts some of the most advancedmobile phone technology in the world. It is blanketed in high-speedcellular networks, and phones come standard with features like GPS, TV and touchless train passes.

The mobile phone market is largely saturated, however, and fees are being driven down by an ongoing price war. For Softbank, a government-backed health-monitoring service could be boon to business.

GPS has its shortcomings, including hazy readings indoors. But Softbank believes it could keep readings accurate to several yards, at least for an experiment in a limited area.

Until now, technologies like GPS have mainly been used to help people figure out where they are and what is nearby. As networked devices like the iPhone become more popular, new applications let people track their children or friends, and could give companies and governments access to their location.

Aoyama Gakuin University, a prestigious school in Tokyo, is givingApple Inc.'s iPhone 3G to students, partially as a way to check attendance via GPS readings from an application running on the phone.

That kind of project raises privacy concerns, and one of the goals of the Japanese experiment is to judge how participants feel about having their location constantly recorded.

If a disease-tracking system were launched for real, no one would be required to sign up, said Takuo Imagawa, an official at the Ministry of Internal Affairs and Communications.

Another concern for the experiment is how to inform people that they may be infected, even if it's just a virtual disease. "If we don't think carefully about the nature of the warning, people that get such a message could panic," said Katsuya Uchida, a professor at the Institute of Information Security in Yokohama. Uchida serves on a board that evaluates such proposals for the government.

Softbank Telecom, the subsidiary that made the original proposal, might not be chosen by the ministry to run the experiment in the fall. But Takahashi says that whichever company is chosen, he hopes the potential benefits of a monitoring system are enough to persuade people to sign up and reveal their whereabouts.

"I think it would have a bigger impact than Tamiflu," he said.

Source: http://tech.yahoo.com/news/ap/20090606/ap_on_hi_te/as_tec_japan_mobile_pandemic_stopper_1

Tags: Japan, cell phones, pandemics, Aoyama Gakuin University, Iphone, GPS, Yokohama, Softbank Telecom, Institute of Information Security in Yokohama, Global IT News, Japanese Ministry of Internal Affairs and Communications,

Posted via email from Global Business News

Mitsubishi Rolls Out Zero-Emission Electric Minicar

TOKYO (AFP) – Japan's Mitsubishi Motors Corp. rolled out its first zero-emission electric minicar Friday, hoping to capture a slice of the fast-growing market for environmentally friendly vehicles.

 

The new "i-MiEV" -- short for Mitsubishi Innovative Electric Vehicle -- can seat four adults, emits no carbon dioxide and has a range of up to 160 kilometers (100 miles) on a fully-charged battery. The distance should be enough for day-to-day city driving in Japan, said company president Osamu Masuko, who added that the automaker was initially targeting corporate and government clients.

 

"We at Mitsubishi Motors hope to build technology that will put us in a competitive position in the global market of the future," he told a press conference. "Thinking about the Japanese auto industry in 10 to 20 years from now, we must make sure the industry does not fall behind our foreign rivals."

 

Mistubishi says the car, priced at 4.6 million yen (47,500 dollars), runs quietly but accelerates quickly, and the running cost is one third of that of a petrol-powered car -- or less if it is charged during off-peak hours. Because of its efficiency -- including converting braking energy into battery power -- the vehicle emits only one third of the CO2 of a petrol car when the electricity generated to recharge it at a power plant is factored in.

 

The battery can be charged overnight on a domestic power source, or it can be powered up through quick-chargers now being developed by power companies, Mitsubishi said. The i-MiEV is the latest addition to a lineup of Japanese autos with green technology.

Industry leader Toyota Motors' Prius hybrid became Japan's best selling car in monthly sales in May, pulling ahead of its rival, Honda's Insight, also a hybrid. The Japanese government has offered tax breaks and other incentives for consumers to buy fuel-efficient vehicles.

 

Masuko said: "The current launch price is high for ordinary motorists to purchase. But mass production will allow it to fall." He added that Mitsubishi hopes to eventually bring the cost down to around two million yen. For the year to March 2010, the company aims to sell 1,400 i-MiEVs to government and corporate users in Japan, in addition to 250 units overseas.

 

The company will start selling the vehicle to the general public from April 2010, with an annual target of 5,000 units in Japan and 1,000 overseas. In 2011, Mitsubishi hopes to sell as many as 15,000 units, Masuko said, adding that the company would make a profit on the model once production rises above 30,000 vehicles.

 

Tags: mitsubishi, electric car, zero emissions electric car, japan, imiev, fuel efficiency, prius, Toyota, hybrid cars, osamu masuko, 

 

Source: http://news.yahoo.com/s/afp/20090605/sc_afp/japanautoenvironmentcompanymitsubishimotors_20090605161715

Posted via email from Global Business News