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 NEWS
updated by 7:00 a.m. CST each day


Zoellick Upbeat on U.S.- Centam Free Trade Deal
The top U.S. trade negotiator, Robert Zoellick, began talks in El Salvador thursday to push ahead with a U.S.- Central America free trade agreement, despite disagreements over Costa Rica's defense of its telecom sector. 

Zoellick, who arrived in El Salvador on Wednesday, met on Thursday with Salvadoran President Francisco Flores and had meetings scheduled with officials from the other three Central American nations: Nicaragua, Guatemala and Honduras. 

Officials said they hoped to conclude negotiations by December. But on Wednesday, Costa Rican officials demanded that the treaty skip the politically sensitive telecommunications sector. 

"We are going to respect Costa Rica's decision on norms for universal services, should that be their decision," Zoellick told reporters. "I realize Costa Rica has a social, historic and political sensitivity" on the telecom issue, he said. 

"Still, I believe we have to have some kind of opening in this market," he said. 

Earlier, Alberto Trejos, Costa Rica's foreign commerce minister, said "opening telecommunications is not negotiable." 

Zoellick, however, told local officials that telecommunications was vital to the agreement. 

"The other four nations are in agreement on this and Costa Rica has the right to its position, but we need this as part of the agreement," he told a news conference in San Jose, the Costa Rican capital. 

Zoellick said he told Costa Rican officials that "we are not seeking privatization of telecommunications, but we do say that in order to compete successfully in the world, Costa Rica needed more efficient telecommunications." 

Trejos said Zoellick advised him that if one country did not want to take part, the treaty could go to the U.S. Congress covering the rest, but Trejos said his Costa Rica remains firm on the telecommunications issue. 

Salvadoran Economy Minister Miguel Lacayo said the five nations "have reaffirmed our commitment to finish negotiations by December, and it has been made clear which are the issues which we need to focus more time and effort on." 

"What we have agreed on is that all the issues on agriculture need to be discussed," Zoellick said. 

Lacayo said Zoellick's visit was meant "to promote the successful conclusion" of the free trade agreement, which officials say they hope to have ready for their countries' legislatures by the end of the year. 

Lacayo said the talks would cover "a general analysis of the process, farm access, asymmetries (and) concerns about health measures." 

Industry Staggers Under Uncertainty
The trade negotiations with the United States and domestic fiscal changes have made many industries lower their production and postpone new investment.

Uncertainty is one of the key factors mentioned by sector members responding to the question of why the slow growth rhythm. 

According to official data, the industrial sector -exempting Intel- had slowed down by seven consecutive months as of last July. Industry is Costa Rica's leading production sector and the second generator of employment. 

Sector sources agree that until the outlook becomes clear, there are scant chances of speeding growth up.


Harken Wants $57 billion
Harken Energy Corporation - a US oil firm - claims that Costa Rica must compensate it with $57 billion for the alleged losses it suffered because this Central American nation cancelled an oil exploration license it had awarded Harken. 

The action was notified to the Embassy of Costa Rica in Washington, Minister of Foreign Affairs Roberto Tovar confirmed. 

According to the Costa Rican Minister of the Environment Carlos Rodriguez, the cancellation was due to the fact that Harken did not meet all of the environmental requirements stated in the original contract, and therefore will not accept any action in that direction. 

In order to fathom Harken's claim, the figure represents three times the overall production of all of the industries and companies in Costa Rica - the Gross Domestic Product -, that this year is estimated at a little over $17 billion. 

As compared to the Government of Costa Rica's budget, the amount claimed by Harken represents 11 times that national budget, which for the year 2004 will be a little over $5 billion. Also, Harken's claim represents 15 times Costa Rica's external debt, currently at $3.662 billion


Russia and Costa Rica dispute lawfulness of smoking ban at UN HQ
Russia and Costa Rica are heading the campaign for lifting a ban on smoking at the UN headquarters which was officially announced a month ago by the UN Secretary General.

On their initiative a group of diplomats engaged in administrative and budget affairs addressed Kofi Annan at a session of the Sixth Committee of the UN General Assembly on Thursday with a request to present a juridical substantiation of this decision.

Having banned the UN Secretariat personnel to puff away at the headquarters of the league of nations, Kofi Annan sent a letter to the diplomatic missions insistently recommending their staff as well as foreign diplomats to refrain from smoking at the premises on the East River.

The UN Secretary General explained his decision by concern for the personnel's health and the need to lower insurance costs, as the sky-scraper built 50 years ago was not equipped with an automatic system of fire extinguishing.


 
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The Murder of Minors Continues in Honduras
After a significant drop in the numbers of murders of children and youth in Honduras in the month of July, during August the numbers shot up again, with a total of 64 children and youth under the age of 23 murdered, close to half of them children.

The most violent city was, once again, San Pedro Sula where 29 (44%) children and youth were murdered, closely followed by Tegucigalpa with 31% (20) of the murders. In El Progreso there were four murders, three in Choloma and one each in Tela, Puerto Cortez, Bonito Oriental Catacamas; Talanga; Yoro and Choluteca.

Seventy eight percent of the victims were males. More than 80% of the cases still have no identified killer whereas 16% are attributed to gang members and 5% to agents of public security.

This month, the children of Casa Alianza commemorated the child and youth victim number 2,000 since January 1998 - one of seven children and five adults who were killed during bloody confrontations on public buses on August 31st.

It is thought that these actions were taken by gang members in response to the government's "Operation Liberty" police action to crack down on gang activity utilizing new laws that were recently passed by the Honduran Congress.

Changes in the Penal Code that came into effect on August 15th, 2003 include a jail term of 10-12 years and a fine of between US$ 500 and US$ 11,500 for being the head of a gang and a third of these sentences for being a member of a gang. In Honduras it is considered to be a crime of "illicit association" to be a member of a gang.

Seventy eight percent of the August victims were males and firearms killed 84% of them.

None of the cases where the police are suspected of murdering children -which are supposedly being investigated by the group, "Special Unit for Child Deaths" - has resulted in a conviction since the group was formed almost one year ago.

"To say we are extremely frustrated is an understatement", commented Bruce Harris, the Regional Director for Casa Alianza's Latin American Programs. "Forming commissions is not the response we are willing to accept anymore. We want convictions of the murderers no matter who they are".

Harris, who is currently in Berlin, briefed key members of the Human Rights Commission of the Bundestag today regarding the child and youth murders as well as members of the Ministry of Foreign Affairs who will travel to Central America next week.

A total of 2,002 children and youth have been murdered in Honduras between January 1998 and the end of August 2003.



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