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17 June 2003
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 NEWS
updated by 7:00 a.m. CST each day

Teacher's Strike Continues: Day 16
• Government say Pension issued a closed subject
• Teacher to take to streets today

The Government has told union leaders that the Pension issue is a closed subject and it cannot legally reverse a decision made earlier and meet the demands of the teachers.

Ricardo Toledo, Minister for the Presidency, told unions leaders that the only way he sees a change in the issue, is if the teachers make a petition before the Justice Tribunals, where the legal question can be answered.

A march on Presidential House is planned for today. Teachers will gather at Parque Central in downtown San Jose and head to Presidential House in Zapote. 

As on the last march - the route expected is Avenida Segunda (2nd Ave.) east to San Pedro, then a right in front of the mall and continue the next kilometer or so to it's final destination - traffic police will be ahead of the marchers to re-direct traffic.



Casa Alianza to explain dangers of Sex Tourism before the OAS
The risks and dangers of child commercial sexual exploitation in Latin America will be the subject of a presentation by Casa Alianza before the 14th Inter-American Travel Congress that will take place in Guatemala on June 18, 19 and 20.

This activity is organized by the Organization of American States (OAS) and will analyze the situation of the tourist industry in the continent; its importance for economic development and the threats that it faces. It will bring together representatives of governments and the tourism industries. Casa Alianza is one of the few social agencies represented.

Engineer Arturo Echeverría, National Director of Casa Alianza Guatemala, will present the subject and explain how the organization fights against the sexual abuse of children by tourists in Central America.

It is hoped that by the end of the Congress there will be a consensus between the participants on the best mechanisms to prevent the threat of abuse of children by tourists, as part of the policies for a sustainable development of the Latin American nations.

Casa Alianza recently participated in the Regional Consultation on Sexual Tourism, organized by the World Tourism Organization, that took place in Costa Rica in May. The necessity to stimulate the commitment of the tourist sector in the fight against child commercial sexual exploitation was then established.


Ex-Nicaraguan President Resists Probe
MANAGUA, Nicaragua - Prosecutors are investigating a third corruption case against former President Arnoldo Aleman, who is under house arrest awaiting a pair of trials on fraud, embezzlement and money laundering charges.

In a phone interview Saturday, special prosecutor Raimundo Romero said authorities believe Aleman's administration may have stolen $113.7 million in state funds before he left office in January 2002.

The former president, who is under house arrest, has already been indicted on charges he funneled about $100 million in public funds to bank accounts controlled by his family in Panama, then distributed the money to candidates from his Constitutionalist Liberal Party.

Prosecutors later secured a separate indictment against Aleman for allegedly stealing $1.3 million that was supposed to go toward modernizing a state-run television station.

Aleman has denied the charges and has refused to answer prosecutors' questions regarding the latest allegation, claiming immunity because he became a legislator upon leaving office. Lawmakers voted to strip the former president of that immunity late last year, however.

"As a citizen, a public servant and an ex-president he has the obligation to testify so we can determine if he had any responsibility in this crime," Romero said.

Since Dec. 12, Aleman has been confined to his ranch 15 miles outside the capital, Managua, awaiting each of his trials to begin.

Romero did not say what action prosecutors would take against Aleman for refusing to testify.

Romero said prosecutors are also looking into preparing charges against Noel Ramirez, a legislator from Aleman's party who headed the Central Bank during Aleman's administration, and against former treasury minister Esteban Duquestrada.


Candidate for El Salvador’s president vows to move Israel embassy if elected
The leader of El Salvador’s most popular political party said this week that he would close his country’s embassy in Jerusalem if elected president next year.

In a television interview with a small station in San Salvador, Shafik Handal, leader of the leftist Farabundo Marti National Liberation Front legislative bloc and the front-runner for the party’s presidential bid, said that “as someone of Palestinian descent,” he would close the Jerusalem embassy if he wins the March 2004 presidential elections.

Early polls show that a plurality of voters support the FMLN, which has the largest voting bloc in the legislature. The ex-guerrilla party hopes to unseat the right-wing National Republican Alliance, or ARENA, from the presidency. It has controlled the presidency since the mid-1980s, when U.S.-backed ARENA governments fought a bloody civil war with Marxist FMLN rebels.

Costa Rica and El Salvador, which received military aid from Israel during the civil war, are the only countries with embassies in Jerusalem, Israel’s capital. Most countries have their embassies in Tel Aviv; many do not recognize Israel’s rights in Jerusalem.


Canadian questioned in two unsolved murder cases
But the more Bruce Harris, director of a Casa Alianza, learned about Holly Jones's horrific slaying, the more it reminded him of the unsolved descuartizador or hatchet man case in his own country.

And even more remarkable, a Canadian had been a suspect in the case in San Jose, Costa Rica, until he left the country.

"My first reaction was, Harris, don't be ridiculous, Toronto and San Jose are 5,000 kilometres apart. But there are many similarities between the two cases," said Mr. Harris, executive director of Casa Alianza in Latin America, a sister agency of Toronto's Covenant House. "The modus operandi was the same and the victims in all three cases are girls."

Parts of 10-year-old Holly's dismembered body were discovered May 13, the day after she disappeared while walking home from a friend's house. Her body parts were found floating along Toronto's water front, in a gym bag and a small suitcase. Toronto police have set up a Holly Task Force in a case closely followed by the public, frightened for the safety of their own children.  >more


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Political crisis hits Costa Rica's austerity plans
(Reuters)
- Costa Rica, once a paragon of stability in a volatile region, is mired in a political crisis over President Abel Pacheco's failed efforts to control government spending.

Three cabinet ministers have resigned in the last two weeks during a month-long strike by government telephone and electricity workers.

And Pacheco, a conservative, then angered business leaders with a strike-ending deal that gives unions a role in free trade talks with the United States.

Pacheco, a psychiatrist and former television personality, has lost six cabinet ministers since he took office in May last year, pledging to control a soaring fiscal deficit through tax reform and government spending cuts.

"There was a sense of political uncertainty in the air (before the strikes). But never as much as now. People are concerned," Leonardo Garnier, a former minister of planning and adviser to the World Bank, told Reuters.

Among the economic worries are that fiscal chaos could cause international debt rating agencies to downgrade Costa Rica's risk ratings, currently just below investment grade.

While much of Central America fought bitter civil wars in the 1980s, Costa Rica was renowned for its long tradition of democracy and lack of military forces.

CLOSED ECONOMY

But now free-market supporters say it has become one of Latin America's most closed economies and lags behind the economic reforms of its neighbors because it has not opened up to competition and privatized state enterprises.

Costa Rica's telephone service was once better than most of the rest of Central America and now is considered among the worst.

The country's gross domestic product grew 2.8 percent in 2002 boosted by a strong rise in inventories. Economists say growth should be weaker in 2003 as they do not expect that degree of stock build-up to be repeated.

A major exporter of bananas, Costa Rica also relies on income from tourism and a large Intel Corp.
microchip plant.

As in other Central American nations, historically low world coffee prices have put growers out of business and weakened the economy.

Pacheco promised to avoid the mistake of his predecessor, who set off massive protests when he moved to sell off the state telecommunications and energy monopoly, known by its Spanish-language acronym ICE, in 2000.

But Pacheco pressured the company to cut costs yet improve efficiency, triggering a strike in May by ICE employees who said he was trying to weaken the company and lead it to the auction block.

After weeks with only basic telephone and electricity services, in early June the government accepted the union's demand to be allowed to give more input into the United States-Central America talks to set up a free trade treaty known as CAFTA.

The Central Bank will also allow ICE a $60 million international bond issue to fund energy and telecom projects next year.

Finance Minister Jorge Walter Bolanos resigned last month citing health problems. He had objected to the government taking on more debt as the 2003 fiscal deficit balloons to 5 percent of gross domestic product, compared with 4.3 percent last year.

The deal with the unions ended the ICE strike but angered business leaders, who traditionally have been consulted by the government in free trade issues.

The crisis has highlighted a dilemma: polls show most Costa Ricans want free trade with the United States but they are not ready to break up the state telecoms monopoly, which the United States has set as a condition for a trade deal.

"The public will reject outright any attempt to privatize," said Carlos Sojo, of the Latin America Faculty of Social Sciences.


 

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