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

Costa Rican police seek Taiwanese businessman
President Abel Pacheco denied Tuesday that a naturalized Costa Rican, originally from Taiwan, and his wife bought political favors through a hefty campaign donation.

The businessman, Chi Kwon Li Su -- known in local financial and political circles as Pablo Li -- fled the country in late August with his wife, just hours before a court ordered their arrest in a case of alleged tax fraud amounting to over US$12 million.

Kwon Li's wife, Anita Among, donated more than US$40,000 to Pacheco's Social Christian Unity Party in the campaign that led to his victory in last year. Both Kwon Li and his wife have acquired Costa Rican citizenship.

Kwon Li also donated US$3,000 to the campaign of Rolando Araya, of the National Liberation Party, Pacheco's main rival in the polls.

Pacheco, who attended Kwon Li's a wedding party, said he that had no knowledge of the businessman's shady activities.

At that time, Pacheco said, "He was a highly respected person; president of a bank; president of Taiwanese tradesmen in all of Latin America; at that time he had credentials for me to think he was a person of total and absolute moral solvency."

The case involving Kwon Li comes on the heels of a campaign donations scandal that has hit the Pacheco government and the ruling party. Pacheco denied Tuesday that he was ready to resign because of the scandal.

Kwon Li, along with his wife and a Salvadoran businessman -- identified as Jose Trinidad Sossa and also charged with fraud -- fled Costa Rica on Aug. 27. Shortly after they fled their homes and business offices were raided.

In the search, police found several photographs of Li posing with different politicians, including Pacheco, former presidents Miguel Angel Rodriguez and Rafael Angel Calderon, both of the ruling party, and former president Jose Maria Figueres of the National Liberation Party.

Pacheco and other figures close to the government are under fire after it became public that the Pacheco campaign had set up secret bank accounts for donations.


Costa Rica asks U.S. government to urge Chiquita to cancel plans for banana buying freeze
Costa Rica announced Wednesday it has asked the U.S. government to urge Chiquita Brands International Inc. to scrap its plan to stop purchasing bananas from independent producers in this country for a 10-week period beginning Sept. 14.

On Tuesday, the Cincinnati-based company announced its intention to temporarily stop buying bananas from all of Costa Rica's independent producers. The company did not give a reason for the move, but produce market experts here have speculated it resulted from recent overproduction of bananas in Colombia, Guatemala and this country.

Chiquita controls a small number of private banana plantations in Costa Rica and plans to continue to produce and export bananas grown on those farms during the buying freeze. The vast majority of its Costa Rican bananas are purchased from independent banana producers.

Agricultural Secretary Rodolfo Coto said his government was aware Washington couldn't force Chiquita to buy independently produced Costa Rican bananas, but said officials here hope their American counterparts would intervene and implore Chiquita to rethink its plan.

"This isn't a demand. Since this is a commercial matter, it's more like a request for support because of the situation that a company in that country has put us in," Coto said.

As part of the government's request that the United States intervene in the matter, President Abel Pacheco joined Coto and other key fiance leaders in a series of meetings with officials at the U.S. Embassy in  San Jose late Tuesday.

Coto said Wednesday that the U.S. ambassador to Costa Rica, John J. Danilovich, was traveling and didn't attend the Tuesday meetings.

The agricultural secretary said Chiquita had unfairly singled out Costa Rica and its independent banana producers.

"This is an injustice and it's going to affect much of the country," he said. Chiquita "made a miscalculation and they are making Costa Rica pay for it."

Coto said the buying freeze will affect 4,400 workers at 11,000 acres of banana plantations and will cost the nation $10 million in lost revenue.

Costa Rica is the world's second-largest banana producer and exported more than 89,000 boxes of bananas worth $462 million in 2002, the last year Costa Rican export totals were available.

Chiquita and multinational fruit giants Dole and Fresh Del Monte control their own Costa Rican plantations while also purchasing bananas from independent producers.

A spokesman for Chiquita's Costa Rica operations could not be reached for comment on the buying freeze late Wednesday.


 
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Chile likely to ratify FTA with US in October 
Chile's Lower House of the Congress may ratify the free trade agreement (FTA) with the United States in October, since US President George W. Bush signed the accord Wednesday. 

Bush signed FTA bills with Chile and Singapore at the White House in the presence of Chilean ambassador Andres Bianchi and US Trade Representative Robert Zoellick. 

The agreement will strengthen trade and economic ties between the United States and Chile by phasing out tariffs and other trade barriers. 

"We waited as we accorded with the president of the Lower Houseon Tuesday, to vote the FTA during the first days of October," said Chilean Foreign Minister Soledad Alvear Wednesday. 

"We are working on the treaty with the special commission presided over by Representative Edgardo Riveros, and we have already held five work sessions and there is a very active agenda," she said. 

Alvear participated in the special commission of the Senate in charge of studying the approval of the FTAs with the United Statesand South Korea. The Upper House began its sessions analyzing these agreements Wednesday. 

Bush emphasized that Chile has shown "the values of free trade and solid policies," adding that the development of the whole Latin America could be assisted by the agreement. 

Currently, Chile's exports to the US market amount to 3.6 billion US dollars a year and could reach 5 billion dollars as estimated by Chilean government. 

Chile has already signed FTAs with Mexico, Canada, Central America, the European Union and South Korea. 

The FTA with the United States, which will come into effect by the end of the year or early next year, will make Chile the fifth economy with the largest number of FTA agreements, following China's Hong Kong, Singapore, Estonia and Armenia. 


US. ex-cleric executed for murdering abortion doctor 
A former US. cleric was executed Wednesday for shooting to death an abortion doctor and his bodyguard, becoming the first person put to death in the United States for anti-abortion violence. 

Paul Hill, a former Presbyterian minister, was executed by injection in the southeastern state of Florida. He was sentenced to death for shooting Dr. John Bayard Britton and his bodyguard to death and wounding the wife of the bodyguard in July 1994. 

Hill, 49, said he killed the abortion doctor and his bodyguard to save the lives of unborn babies. 

"If you believe abortion is a lethal force, you should oppose the force and do what you have to do to stop it," Hill said in the execution chamber. 

Opponents to death penalty had urged a halt to the execution, and some warned that Hill's death would lead to more violence against abortion clinics. 

Abortion clinics and police in Florida were on high alert for possible reprisals, and several officials connected to the case had received threatening letters. 

Hill became the 57th prisoner executed since Florida resumed executions in 1979.


Venezuela has worst contraction, inflation in Latin America: CEPAL 
Venezuela is one of the Latin American countries with the worst economic contraction and inflation, said the Economic Commission of Latin America and the Caribbean (CEPAL). 

Venezuela will close the year with a 13-percent economic contraction, the worst in the region since 1994, CEPAL said in a report published Wednesday. 

Venezuela's inflation of 34.2 percent is only second to Haiti's44.5 percent, according to the report. 

In the first half of the year, the income of workers grew by 2.9 percent, while prices increased by 14.6 percent in the same period. 

According to Venezuelan economist Orlando Ochoa, the income of the Venezuelans will drop in 2004 due to devaluation of the currency and the strict currency exchange scheme, which was in place since February. 

Analysts and officials of Venezuela have forecast a recovery inthe last quarter of the year and a growth of 3 to 5 percent for 2004. 

Venezuela is the world's fifth largest oil exporter with its oil exports accounting for 12.4 percent of the quota of the Organization of Petroleum Exporting Countries. 

The Venezuelan oil industry was severely affected by a two-month-long general strike called by the opposition in December to press for the resignation of President Hugo Chavez. 



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