Australia:A$6.00(InclGST),Brunei:B$7.00,China:RMB25.00,Hong

Kong:HK$18.00,India:Rs25.00,Indonesia:Rp18,000(InclPPN),Japan:Yen500(InclJCT),Korea:Won2,500,

Malaysia:RM

6.00,Pakistan:Rs140.00,Philippines:Peso80.00,Singapore:S$4.00(InclGST),SriLanka:Slrs180(InclVAT),Taiwan:NT$60.00,Thailand:Baht50.00,Vietnam

:US$2.50

KKDNPPS

648/11/2010(028507)

KKDNPP

9315/10/2010(025811)

MICA

(P)NO.164/10/2010

SK.MENPEN

R.I.NO:01/SK/MENPEN/SCJJ/1998

TGL.4SEPT

1998

A South Korean man holding a candle during a vigil held in Seoul just before the one-month anniversary of the Norths shelling ofYeonpyeong Island, which killed four people. Seoul said it plans further military exercises Thursday, near the Norths border. Page 3

AssociatedPress

South Korea remembers attack, plans Thursday military drill Farm wagestrip Beijingsprice battle

BEIJINGTo combat asurge in food prices that isworrying consumers andeconomists, Chinas govern-ment is reining in bank lend-ing and selling down reservesof grain. But there is onedriver of higher food pricesthat will be harder to get un-der control: the steady rise inthe wages paid to workers onand off the farm.

Managing inflation hasrapidly become Chinas topeconomic priority, followingtwo months of official figuresshowing consumer prices ris-ing much faster than ex-pected. A 21% rise in vegeta-ble prices, in particular,helped push consumer-priceinflation over 5% in Novemberfor the first time in two years.

The government has em-phasized the role that tempo-rary food shortages play.Chinas top Communist Partyleadership, concluding theirannual economic-policy con-ference Sunday, called fordoing everything possible to

ensure the security of thesupply of major agriculturalproducts. But farmers knowother factors are also at work.

Zhang Zhongliang, whoruns a pig farm on the south-ern outskirts of Beijing, saysthe average pay for his work-ers has gone up 10% this year,to about 2,000 yuan a month,and he expects to give thesame kind of raises next year.

Wages are going uparound the country. This willbe the trend for the next fewyears, Mr. Zhang said.

Most of Chinas farmerssupplement the income fromtheir family plots by workingat urban factories or largefarms like Mr. Zhangs. Withthe job market bouncing backstrongly from last yearsdownturn, the wages earnedby rural households are up18.7% so far this year on a percapita basis, according to offi-cial data.

Those rising wages are aPlease turn to page 16

BY ANDREW BATSON

Li seeks first

Billionaire Li Ka-shing isexploring what would beHong Kong's first IPO valuedin yuan, as the city looks tobolster its position as aglobal trading center for theChinese currency. Page 17

Notice to readers

The Wall Street JournalAsia wont publish Fri-day or Monday in obser-vance of Christmas andBoxing Day. News andupdates are available atasia.WSJ.com.

Facebooks chief meetswith Chinas Web leaders

BEIJINGFacebook Inc.Chief Executive Mark Zucker-berg met with some of Chinastop technology executivesduring a visit to Beijing thisweek that was billed as a va-cation, fueling speculationabout the social-networkingsites ambitions to enter amarket where it is blocked bycensors.

Mr. Zuckerberg onWednesday visited the officesof Sina Corp., a leading Chi-nese Web portal, and metwith its CEO, Charles Chao.That followed a meetingTuesday with Wang Jianzhou,chairman of state-owned tele-communications carrier China

Mobile Ltd., and a visit Mon-day with Robin Li, CEO ofBaidu Inc., at the Chinesesearch companys headquar-ters.

The trip appeared to be aneffort by the 26-year-old U.S.executive to learn more aboutthe Chinese market, ratherthan discuss any specific busi-ness proposals. But the visitcame as the Facebook founderopenly has discussed a desireto get into China, where thegovernment has blocked ac-cess to the site since last year.

At a talk this fall to aspir-ing entrepreneurs in PaloAlto, Calif., Mr. Zuckerbergsaid he was hoping to figureout the right partnershipsthat we would need to do in

China to succeed on ourterms.

Before we do anythingthere, Im personally spendinga lot of time studying it andfiguring out what I think theright thing to do is, he said,adding that he spends an houra day studying Chinese. Itssuch an important part of theworld. I mean, how can youconnect the world if you leaveout Chinas population ofmore than one billion people,he said.

Mr. Zuckerberg couldnt bePlease turn to page 16

BY LORETTA CHAO

OPINION:Gen. Petraeusraces the clockin Afghan surgePage 13

Business & Finance, Page 17

Chinese production gets Hollywood star

ASIA

As of 11 a.m. ET DJIA 11542.35 0.08% FTSE 100 5983.49 0.53% Nikkei 225 10346.48 g 0.23% Shanghai Comp. 2877.90 g 0.90% Hang Seng 23045.19 0.22% Sensex 20015.80 g 0.22% S&P/ASX 200 4778.43 0.14%

asia.WSJ.com

(India facsimile Vol. 2 No. 143)VOL. XXXV NO. 82 Thursday - Monday, December 23 - 27, 2010

dingbat Surge in the price of onionsroils India ....................................... 5

dingbat Online book seller Dangdangset to expand ........................... 20

dingbat Retailers tap Facebookprofiles .......................................... 21

Chronomat 01

WWW.BREITLING.COM

2 * * THE WALL STREET JOURNAL. Thursday - Monday, December 23 - 27, 2010

THE WALL STREET JOURNAL ASIADow Jones Publishing Company (Asia)

25/F, Central Plaza, 18 Harbour Road, Hong KongTel 852-2573 7121 Fax 852-2834 5291

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SUBSCRIPTIONS and Address Changes, pleasetelephone our local customer service hotline, HongKong/Taiwan: 852-2831 2555; Beijing: 86-10 6581 4090;Shanghai: 86-21 5836 8228; Indonesia: 62-21 527 7592;Japan: 81-3 6269-2760; Korea: 82-2 756 1695;Malaysia: 60-3 2026 4061; Philippines: 63-2 848 5873;Singapore: 65-6415 4000; Thailand: 66-2 652 0871;India: 91-11 6462 0215. Or email: service@wsj-asia.comADVERTISING SALES worldwide through Dow JonesInternational. Hong Kong: 852-2831 2504; Singapore:65-6415 4300; Tokyo: 81-3 6269-2701; Frankfurt: 49 6929725390; London: 44 207 842 9600; Paris: 33 1 40 1717 01; New York: 1-212 659 2176. Or email:wsja.publisher@dowjones.comTrademarks appearing herein are used under license fromDow Jones & Company. USPS 337-350ISSN 0377-9920

PAGE TWO

ONLINE TODAYMost read in Asia

1. N. Korea Backs Down, HoldsFire2. South Mistrust of North Grows3. Tokyos Taxis Add Wi-Fi4. Internet Gets New Rules5. Microsoft to Reveal NewWindows

Most emailed in Asia1. Congress, SEC Hit Stocks Madein China2. The Doctors Dog Will See YouNow3. Cooling Trend in Hong Kong4. Trader Hoards Copper inLondon5. Ernst & Young Faces Charges

Exchangeblogs.wsj.com/exchange

Investors may opt forHong Kong-listedChinese companiesrather than thosetrading in the U.S.

On Wine

The White House offersclues about its holidaywine selections.blogs.wsj.com/wine

Speakeasyblogs.wsj.com/speakeasy

Critics have theirknives out for LittleFockers, the thirdinstallment of theMeet the Parentsfranchise.

i i i

Business & Finance

n Billionaire Li Ka-shing is plan-ning what could be the first yuan-denominated IPO in Hong Kong,for a real-estate investment trustbacked by property in Beijing. Thedeal still needs regulatory ap-proval from authorities on theChinese mainland. 17

n DP World said it sold 75% ofits Australian port interests to aninfrastructure fund managed byCitigroup for about $1.49 billionto reduce debt. 29

n Sony started a streaming musicservice in the U.K. and Irelandthat it plans to roll out morebroadly next year in a bid to catchup to rivals such as Apple. 19

n Japan offered a relatively up-beat forecast of 1.5% economicgrowth next year, showing its op-timism reinforced by positive No-vember trade data. 4

n The U.S. economy grew 2.6% inthe third quarter, slightly morethan previously thought, as firmsboosted inventories, but consumerspending was revised lower. 6

n South Koreas benchmarkstock index ended at a three-yearhigh, helped by gains in automo-bile and shipbuilding stocks. U.S.stocks edged up, helped by the re-vision to economic growth. 23

n Deutsche Bank agreed to pay$553.6 million and admitted crimi-nal wrongdoing to settle a U.S.probe over tax shelters. 29

n Directors of AIG are expectedto confer Thursday to try tochoose a preferred bidder for itsNan Shan life-insurance businessin Taiwan. An announcement isexpected next week. 24

n Former H-P chief Hurd is fight-ing to keep private the letter thatled to his resignation from thecompany, which is the subject of aprobe by U.S. regulators. 21

n Online book retailer Dangdangis looking to fuel growth by ex-

panding its offerings beyond me-dia, but it warned the push couldpressure margins. 20

n American Airlines wants to de-lay the start of its new service toTokyos Haneda airport by amonth to avoid a slow period. 18

n Chinese filmmaker Zhang Yi-mou is tapping Hollywood actorChristian Bale to star in a movieabout Japans occupation of Nan-jing, underscoring the global am-bitions of Chinas film industry. 17

n Shanghai Pudong DevelopmentBank and the U.S.s Silicon ValleyBank plan to set up a bank inChina for small and medium-sizetech firms. 22

n Fosters said it is shuffling ex-ecutives ahead of the expectedseparation of the Australian com-panys wine and beer divisions. 19

n South Koreas government saidit still plans to privatize Woori Fi-

nance, just days after calling offthe sale of its controlling stake inthe company. 25

n PPG Industries will pay $3.75million to settle U.S. charges thata Chinese subsidiary illegally ex-ported high-performance coatingsto a Pakistan nuclear reactor. 20

n A single trader has reported itowns 80% to 90% of the copper inLME warehouses. Such holdingsare under scrutiny as commodityprices soar. 25

i i i

World-Wide

n South Koreas military sched-uled another exercise to takeplace near the inter-Korean bor-der Thursday, after it was embold-ened by carrying out a militarydrill in the face of North Koreanthreats earlier this week. 3

n The U.K.s coalition govern-ment suffered new embarrass-

ments from secretly taped com-plaints about the coalition bymembers of its junior partner. 8

n Europes travel crisis easedbut there were still substantialairport and train delays amidforecasts of another dip in tem-peratures in coming days.

n China fired back at the Vaticanafter its criticism of Beijings reli-gious appointments, calling such amove harmful to the Catholicchurchs development in China.

n Thousands of Italian studentsprotested against university bud-get cuts as police blocked off largeparts of central Rome.

n A top opposition figure inIvory Coast called for the interna-tional community to use force tooust Laurent Gbagbo from thepresidency after the disputed elec-tion. France urged its citizens toget out of the country amid grow-ing fears of civil war.

Russian President Dmitry Medvedev visited the Taj Mahal in Agra on Wednesday, a day after he and Indian PrimeMinister Manmohan Singh signed a series of agreements in areas ranging from nuclear energy to the development offighter aircraft to give impetus to what they termed a special and privileged partnership.

European

Presspho

toAgency

Whats News Inside

World News: Onionprices are a politicalhot potato in India. 5

Capital: Japan showstrials of escaping apost-bubble funk. 4

Business & Finance:Tokyo taxis join ranksof Wi-Fi hotspots. 18

Markets: Chinesecompany buys NewYork landmark. 29

Thursday - Monday, December 23 - 27, 2010 THE WALL STREET JOURNAL. 3

WORLD NEWS

Seoul flexes its muscle with new drillSEOULSouth Koreas military,

emboldened after carrying out amilitary drill in the face of NorthKorean threats earlier this week,scheduled another exercise to takeplace Thursday near the inter-Ko-rean border.

Meanwhile, more emerged aboutNorth Koreas preparations for itsattack last month on a South Koreanisland, showing that the North hadheld practice drills of the strategy itused in the attack, and had takensteps to shield its radio communica-

tion at the time of the attack.The new exercise will involve ar-

tillery units and aircraft at a SouthKorean training range north ofSeoul near the border area knownas the demilitarized zone. Though itinvolves just 800 troops of thecountrys approximately 600,000-person military, South Korean offi-cials said it was the largest exercisetheyve staged in winter.

The drill is the 48th major exer-cise of the year for South Koreanforces, a figure that doesnt countsmall-scale test-firings of the kindthat occurred Monday on the island

attacked by the North.However, South Korea appeared

to use the exercise as a public-rela-tions opportunity. Its military, stungby criticism it responded weakly tothe Nov. 23 attack, have been look-ing for ways to flex its muscle. Anew defense minister and other se-nior officers have warned North Ko-rea that further provocations will bemet with strong counterattacks.

The military invited news pho-tographers to cover Thursdays drill,another sign of the eagerness todemonstrate its capabilities.

Separately, analysts continued to

learn details about North Koreastactics in the Nov. 23 attack, whichkilled four people on South Korea-controlled Yeonpyeong Island in theYellow Sea.

Satellite photos have shown thatNorth Korea took steps to avoid in-terception of radio communicationby the artillery groups that fired onthe island, digging trenches to runcables between firing points and anunderground control center. SouthKorean forces on the island and allalong the border routinely monitorNorth Korean military radio.

The trenches run in nearly

straight lines, defying geographicobstacles such as hills and roads. Itgives you the impression it wasdone hastily or that they were on atight deadline, says Joe Bermudez,a Colorado-based analyst of NorthKoreas military.

As well, North Korea used a sur-prise tactic in which the firing ofdifferent types of weapons from dif-ferent locations was coordinated sothat a high number of roundslanded at once in the initial volley.South Korean officials determinedearlier that North Korea practicedthe tactic at least twice.

BY EVAN RAMSTAD

Collection Haute Joaillerie, LAme du Voyage.

4 THE WALL STREET JOURNAL. Thursday - Monday, December 23 - 27, 2010

WORLD NEWS: ASIA

Japan sees end to downturn next yearTOKYOJapans government

Wednesday offered a relatively up-beat forecast of 1.5% economicgrowth next year, its optimism rein-forced by positive November tradedata.

The forecast for the year startingnext April compares with revisedexpectations for 3.1% growth for thecurrent fiscal year, the first annual-ized expansion in three years. Butrecent indicators have pointed to aslowdown over the past few monthsdue to the end of consumer subsi-dies for energy-efficient autos andappliances as well as the impact ofthe strong yen.

We expect to be out of an eco-nomic standstill from next year,said Hiroyuki Inoue, a deputy direc-tor in the cabinets economic office.Policywise, this is a realistic goal.

Unemployment is expected tocontinue to fall slowly, with the job-less rate forecast to decline to 4.7%from 5%.

The government also expects de-flationary pressures to lessen, butnot disappear. It forecasts the con-sumer-price index to be flat nextyear, compared with a 0.6% declinefor this year.

When he took office in June,Prime Minister Naoto Kan set a goalof ending deflation by fiscal 2011,but officials say the flat forecast forconsumer prices doesnt mean thegovernment expects to declare anend to deflation next year.

The Ministry of Finance saidWednesday that Japanese exportsrose 9.1% in November due to soliddemand from China, with the paceof growth accelerating for the firsttime since February, in a positivesign for the countrys export-depen-dent economy.

Export growth seems to be ac-celerating, and its possible it willcontinue to pick up down the road,said Seiji Shiraishi, chief economist

at HSBC Securities. But he addedthat, given other economic prob-lems, the governments growth fore-cast may still be too ambitious.

I think the governments out-look is slightly optimistic probablybecause they anticipate a strongertail wind from the latest stimulus

package, said Mr. Shiraishi, who ex-pects 1.2% gross domestic productgrowth in the next fiscal year.

Other reports released Wednes-day showed that new sources of de-mand will be needed to avoid twoquarters of contraction and a re-newed recession. Both the govern-ment and the Bank of Japan issuedtheir December scorecards on theeconomy, and both left theirguarded assessments unchanged.

Japans economy is likely togrow at a slower pace for sometime, but is expected to return to amoderate recovery path thereafter,the central bank said in its report,while the government said that theeconomy has been in a lull recentlyand faces severe conditions such asa high unemployment rate.

Economy Minister Banri Kaiedaalso voiced caution, quoting Mr. Kanas saying he was very concernedabout the current state of the econ-omy.

Both the BOJ and the govern-ment have taken steps recently tostimulate the economy.

The central bank announcedcomprehensive monetary easingmeasures in October, including low-ering its benchmark overnight lend-ing rate to a range of zero to 0.1%.

Mr. Kans government, mean-while, is pinning its hopes on a planto cut corporate taxes by five per-centage points from the current 40%rate, which would still leave therates well above Asian rivals levels.However, given Japans bloated gov-ernment debt load, which stands atnearly 200% of GDP, it will need tofind the lost revenue from othersources.

The government will unveil itsbudget for the coming fiscal yearthis week.

Megumi Fujikawacontributed to this article.

BY TOKO SEKIGUCHIAND TAKASHI MOCHIZUKI

Annual GDP growth rate Exports, change from previous year

Note: Fiscal years starting April 1 Sources: Japanese government (GDP); Ministry of Finance (exports); Reuters (photo)

4

6

4

2

0

2

%

-60

-40

-20

0

20

40

60%

FY07 08 09 10 11 10090807

Forecast

Exports driven | Japans economic outlook

Newly produced cars and a container ship are seen at an industrial port in Yokohama, south of Tokyo.

Federal ReserveChairman BenBernanke is underattack for doingtoo much to reduceunemployment and

lift inflation.His Japanese counterpart,

Masaaki Shirakawa of the Bank ofJapan, is under attack for doingtoo little.

Japan is a puzzleand not onlyto foreign visitors who wonderhow a stagnant economy can feelso prosperous. Academics wonderhow Japan avoided thedeflationary spiral their theoriespredicted and, instead, sufferedonly a decade of low-gradedeflation. Foreign central bankersand market analysts wonder whythe Bank of Japan wont do more.Japanese politicians wonder ifthey can force the central bank tobe more aggressive. The rulingparty has an Anti-DeflationLeague, and a band ofparliamentarians want to give theBoJ a target for inflation to pressit to create some.

Since 1997, the price level inJapan has fallen more than 3%.

Had the BoJ achieved 1% inflationeach year, prices would have risen14%. After accounting for pricechanges, the Japanese economyhas grown at a rate of only 0.9%over the past two decades. And, asthe Bank of Japan said this week,The recovery seems to bepausing. Still, it predictedhopefully that Japan will returnto a moderate recovery path asemerging economies andcommodity producers propelglobal growth.

In Japan, a little inflationwould be welcome. It would makeinflation-adjusted interest rateslower. It would make payingJapans huge debts easier. It wouldtend to cheapen the yen, aidingexports.

American pundits, policymakers and economists ought tobe a bit humble about judgingJapanese policy. When the U.S.was booming, it was easy forAmerican experts to assert that ifonly Japan took their advice,everything would be fine. Thesedays, the U.S. is learning how hardit is to climb out of a post-bubblefunk.

Although its hard to swallowthe notion that a central bankcannot thwart deflation, look at allthis through the BoJs eyes.

One, they say, we have done a

lot of monetary easing already,long before we were hit by theLehman shock, as its known inTokyo, and the resulting plunge inour exports. Our 2003-07 battleagainst deflation succeeded for atime. Measured against the size ofour economy, our portfolio ofbonds has increased more and islarger than that of the U.S. orEurope. (OK, says the critic, but sowhat? Its not what you did in thepast that matters. Its what youreaccomplishing now.)

Two, were doing a little moreasset buying, even dabbling incorporate bond, real-estate trusts

and business bank loans to directcredit where its needed. But 10-year Japanese government bondsare yielding less than 1.2%, alreadypretty low. Were not sure massiveBernanke-style quantitative easingwould do much good. (Neither isMr. Bernanke, says the critic, buthe figures doing something beatsdoing nothing.)

Three, much of Japansdeflation is beyond our control,they say. An already low inflationrate was pushed down bycompetition from China and otheremerging markets. (Perhaps, saysthe critic, but if we hold central

bankers accountable for inflation,shouldnt they be held accountablefor deflation, too?)

Four, we dont think deflationis Japans big economic problem.Japan suffers from a shrinkingpopulation, crippling regulationand disappointing productivitygrowth. Political gridlock is anobstacle to fixing anything. BoJmedicine cant cure those ills.(Deflation may not be Japans bigproblem, says the critic, but isntit the one problem a central bankshould be able to solve?)

The Bank of Japan, with thebenefit of hindsight, made somemistakes. It kept rates too low toolong, helping to fuel a bubble. Itfailed to act before deflationinfected its economy, showing thatits a lot easier to avoid deflationthan to get out of it. And it movedprematurely to tighten before theeconomy was ready. The Fedlearned from all that.

Now the BoJ is being testedagain. The betting is that itlleventually follow the Fed and buya lot more bonds of some sort. Itshard for an outsider to tell if itbelieves it lacks the ability toeradicate deflation or if it lacksthe will. But itll be tough forJapans economy to get muchtraction if it cant whip deflationnow.

Tokyo shows trials of escaping post-bubble funk[ Capital ]

BY DAVID WESSEL

Sources: Statistics Bureau (Japan), Bureau of Labor Statistics (U.S.)

Parallel tracks?Year-over-year change in consumer prices excluding food and energy,Japan 1991-2010, U.S. 2007-2010.

-2

-1

0

1

2

3%

1991 9592 93 942007 08 09 10

2000 05 10

Japan

U.S.

Thursday - Monday, December 23 - 27, 2010Thursday - Monday, December 23 - 27, 2010Thursday - Monday, December 23 - 27, 2010Thursday - Monday, December 23 - 27, 2010 THE WALL STREET JOURNAL.THE WALL STREET JOURNAL.THE WALL STREET JOURNAL.THE WALL STREET JOURNAL. 5555

WORLD NEWS: INDIA

Surge in price of onions roils IndiaSurge in price of onions roils IndiaSurge in price of onions roils IndiaSurge in price of onions roils IndiaNEW DELHIBehold the politicalNEW DELHIBehold the politicalNEW DELHIBehold the politicalNEW DELHIBehold the political

power of the simple onion.power of the simple onion.power of the simple onion.power of the simple onion.The root vegetable is the stapleThe root vegetable is the stapleThe root vegetable is the stapleThe root vegetable is the staple

cooking ingredient for hundreds ofcooking ingredient for hundreds ofcooking ingredient for hundreds ofcooking ingredient for hundreds ofmillions of Indians, chiefly across amillions of Indians, chiefly across amillions of Indians, chiefly across amillions of Indians, chiefly across awide belt of the subcontinents pop-wide belt of the subcontinents pop-wide belt of the subcontinents pop-wide belt of the subcontinents pop-ulous north. It has acquired legend-ulous north. It has acquired legend-ulous north. It has acquired legend-ulous north. It has acquired legend-ary status for being not just the sa-ary status for being not just the sa-ary status for being not just the sa-ary status for being not just the sa-vory base of curries but also avory base of curries but also avory base of curries but also avory base of curries but also aslayer of governments, after a dra-slayer of governments, after a dra-slayer of governments, after a dra-slayer of governments, after a dra-matic price rise in 1998 was cred-matic price rise in 1998 was cred-matic price rise in 1998 was cred-matic price rise in 1998 was cred-ited with determining the outcomeited with determining the outcomeited with determining the outcomeited with determining the outcomeof elections in Delhi and one otherof elections in Delhi and one otherof elections in Delhi and one otherof elections in Delhi and one otherstate.state.state.state.

Today, its power as a politicalToday, its power as a politicalToday, its power as a politicalToday, its power as a politicalhot potato has re-emerged with ahot potato has re-emerged with ahot potato has re-emerged with ahot potato has re-emerged with asharp price rise in the past fewsharp price rise in the past fewsharp price rise in the past fewsharp price rise in the past fewweeks. The crop has been severelyweeks. The crop has been severelyweeks. The crop has been severelyweeks. The crop has been severelyaffected by unseasonal rains inaffected by unseasonal rains inaffected by unseasonal rains inaffected by unseasonal rains inwestern states, the onion-growingwestern states, the onion-growingwestern states, the onion-growingwestern states, the onion-growingheartland, with one key areas pro-heartland, with one key areas pro-heartland, with one key areas pro-heartland, with one key areas pro-duction down about 16%, accordingduction down about 16%, accordingduction down about 16%, accordingduction down about 16%, accordingto government estimates. The priceto government estimates. The priceto government estimates. The priceto government estimates. The pricefor a kilo (2.2 pounds) of onions atfor a kilo (2.2 pounds) of onions atfor a kilo (2.2 pounds) of onions atfor a kilo (2.2 pounds) of onions atthe vegetable market has jumped tothe vegetable market has jumped tothe vegetable market has jumped tothe vegetable market has jumped toabout 70 rupees ($1.55), almost fiveabout 70 rupees ($1.55), almost fiveabout 70 rupees ($1.55), almost fiveabout 70 rupees ($1.55), almost fivetimes the usual price and roughlytimes the usual price and roughlytimes the usual price and roughlytimes the usual price and roughlythe same price as the more upmar-the same price as the more upmar-the same price as the more upmar-the same price as the more upmar-ket mango.ket mango.ket mango.ket mango.

The onions price surge also hasThe onions price surge also hasThe onions price surge also hasThe onions price surge also hascome to symbolize a broader prob-come to symbolize a broader prob-come to symbolize a broader prob-come to symbolize a broader prob-lem: Rising prices of all staples, in-lem: Rising prices of all staples, in-lem: Rising prices of all staples, in-lem: Rising prices of all staples, in-cluding tomatoes, lentils and garlic,cluding tomatoes, lentils and garlic,cluding tomatoes, lentils and garlic,cluding tomatoes, lentils and garlic,are taking a heavy financial toll onare taking a heavy financial toll onare taking a heavy financial toll onare taking a heavy financial toll onIndias impoverished masses.Indias impoverished masses.Indias impoverished masses.Indias impoverished masses.

On paper, that toll would appearOn paper, that toll would appearOn paper, that toll would appearOn paper, that toll would appearsmaller than the popular uproarsmaller than the popular uproarsmaller than the popular uproarsmaller than the popular uproarsuggests. Onions represent justsuggests. Onions represent justsuggests. Onions represent justsuggests. Onions represent just0.18% of the wholesale price index,0.18% of the wholesale price index,0.18% of the wholesale price index,0.18% of the wholesale price index,Indias benchmark inflation rate. Ac-Indias benchmark inflation rate. Ac-Indias benchmark inflation rate. Ac-Indias benchmark inflation rate. Ac-cording to that index, food pricescording to that index, food pricescording to that index, food pricescording to that index, food priceshavent been rising as fast recentlyhavent been rising as fast recentlyhavent been rising as fast recentlyhavent been rising as fast recentlyas they did earlier this yearjump-as they did earlier this yearjump-as they did earlier this yearjump-as they did earlier this yearjump-ing 6.1% in November, compareding 6.1% in November, compareding 6.1% in November, compareding 6.1% in November, comparedwith a 10% rise in October.with a 10% rise in October.with a 10% rise in October.with a 10% rise in October.

Some experts even contend thereSome experts even contend thereSome experts even contend thereSome experts even contend thereis little reason for alarm. Subiris little reason for alarm. Subiris little reason for alarm. Subiris little reason for alarm. SubirGokarn, a deputy governor of theGokarn, a deputy governor of theGokarn, a deputy governor of theGokarn, a deputy governor of theReserve Bank of India, the nationsReserve Bank of India, the nationsReserve Bank of India, the nationsReserve Bank of India, the nationscentral bank, said Wednesday thatcentral bank, said Wednesday thatcentral bank, said Wednesday thatcentral bank, said Wednesday thatthe onion price increase will bethe onion price increase will bethe onion price increase will bethe onion price increase will bevery quickly rectified eithervery quickly rectified eithervery quickly rectified eithervery quickly rectified eitherthrough a new cycle of harvest com-through a new cycle of harvest com-through a new cycle of harvest com-through a new cycle of harvest com-ing in or the immediate import.ing in or the immediate import.ing in or the immediate import.ing in or the immediate import.

But the onions potency as a po-But the onions potency as a po-But the onions potency as a po-But the onions potency as a po-litical symbol trumps pure econom-litical symbol trumps pure econom-litical symbol trumps pure econom-litical symbol trumps pure econom-ics. Its recent price rise has domi-ics. Its recent price rise has domi-ics. Its recent price rise has domi-ics. Its recent price rise has domi-nated the news for the past twonated the news for the past twonated the news for the past twonated the news for the past twodays. Ever Had Biryani Without On-days. Ever Had Biryani Without On-days. Ever Had Biryani Without On-days. Ever Had Biryani Without On-ions? screamed the headline onions? screamed the headline onions? screamed the headline onions? screamed the headline onWednesdays front page of theWednesdays front page of theWednesdays front page of theWednesdays front page of theMumbai-based tabloid Midday.Mumbai-based tabloid Midday.Mumbai-based tabloid Midday.Mumbai-based tabloid Midday.

The government has respondedThe government has respondedThe government has respondedThe government has respondedas if this were a national emergency.as if this were a national emergency.as if this were a national emergency.as if this were a national emergency.Earlier this week, it banned exportsEarlier this week, it banned exportsEarlier this week, it banned exportsEarlier this week, it banned exportsfor a month. On Wednesday, it ex-for a month. On Wednesday, it ex-for a month. On Wednesday, it ex-for a month. On Wednesday, it ex-tended that ban indefinitely andtended that ban indefinitely andtended that ban indefinitely andtended that ban indefinitely andscrapped customs duties on importsscrapped customs duties on importsscrapped customs duties on importsscrapped customs duties on importsof onions, asking state-run tradingof onions, asking state-run tradingof onions, asking state-run tradingof onions, asking state-run tradingagencies to import them.agencies to import them.agencies to import them.agencies to import them.

Rahul Gandhi, general secretaryRahul Gandhi, general secretaryRahul Gandhi, general secretaryRahul Gandhi, general secretaryof the ruling Congress party, soughtof the ruling Congress party, soughtof the ruling Congress party, soughtof the ruling Congress party, soughtto reassure the nation. We are go-to reassure the nation. We are go-to reassure the nation. We are go-to reassure the nation. We are go-ing to make sure prices are lowered;ing to make sure prices are lowered;ing to make sure prices are lowered;ing to make sure prices are lowered;leave it to the prime minister, heleave it to the prime minister, heleave it to the prime minister, heleave it to the prime minister, he

said, according to news channelsaid, according to news channelsaid, according to news channelsaid, according to news channelNDTV.NDTV.NDTV.NDTV.

Prime Minister ManmohanPrime Minister ManmohanPrime Minister ManmohanPrime Minister ManmohanSingh, for his part, has asked theSingh, for his part, has asked theSingh, for his part, has asked theSingh, for his part, has asked theagriculture minister to take the nec-agriculture minister to take the nec-agriculture minister to take the nec-agriculture minister to take the nec-essary steps to bring onion pricesessary steps to bring onion pricesessary steps to bring onion pricesessary steps to bring onion pricesdown, according to a letter from thedown, according to a letter from thedown, according to a letter from thedown, according to a letter from theprime ministers office released lateprime ministers office released lateprime ministers office released lateprime ministers office released lateTuesday.Tuesday.Tuesday.Tuesday.

India is even looking to its re-India is even looking to its re-India is even looking to its re-India is even looking to its re-gional rival Pakistan for relief. Paki-gional rival Pakistan for relief. Paki-gional rival Pakistan for relief. Paki-gional rival Pakistan for relief. Paki-stani traders plan to export 2,000 tostani traders plan to export 2,000 tostani traders plan to export 2,000 tostani traders plan to export 2,000 to3,000 metric tons of onions to India3,000 metric tons of onions to India3,000 metric tons of onions to India3,000 metric tons of onions to Indiato meet the shortage and alreadyto meet the shortage and alreadyto meet the shortage and alreadyto meet the shortage and alreadyhave exported around 1,000 tons inhave exported around 1,000 tons inhave exported around 1,000 tons inhave exported around 1,000 tons inthe past few days, said Abdul Wa-the past few days, said Abdul Wa-the past few days, said Abdul Wa-the past few days, said Abdul Wa-hid, a member of Pakistans fruithid, a member of Pakistans fruithid, a member of Pakistans fruithid, a member of Pakistans fruitand vegetable exporters association.and vegetable exporters association.and vegetable exporters association.and vegetable exporters association.

The governments concern isntThe governments concern isntThe governments concern isntThe governments concern isntwithout reason. If the governmentwithout reason. If the governmentwithout reason. If the governmentwithout reason. If the governmentwere to face elections anytime soon,were to face elections anytime soon,were to face elections anytime soon,were to face elections anytime soon,it would surely get hurt, said S.it would surely get hurt, said S.it would surely get hurt, said S.it would surely get hurt, said S.

Chandrasekharan, director of theChandrasekharan, director of theChandrasekharan, director of theChandrasekharan, director of theNew Delhi-based think tank SouthNew Delhi-based think tank SouthNew Delhi-based think tank SouthNew Delhi-based think tank SouthAsia Analysis Group, though heAsia Analysis Group, though heAsia Analysis Group, though heAsia Analysis Group, though headded that the government mightadded that the government mightadded that the government mightadded that the government mightnot be damaged long-term becausenot be damaged long-term becausenot be damaged long-term becausenot be damaged long-term becausethe public memory is short.the public memory is short.the public memory is short.the public memory is short.

The next major state electionsThe next major state electionsThe next major state electionsThe next major state electionsare expected to take place mid-2011.are expected to take place mid-2011.are expected to take place mid-2011.are expected to take place mid-2011.

Mr. Singhs government alreadyMr. Singhs government alreadyMr. Singhs government alreadyMr. Singhs government alreadyis facing severe criticism over re-is facing severe criticism over re-is facing severe criticism over re-is facing severe criticism over re-cent revelations by a public auditingcent revelations by a public auditingcent revelations by a public auditingcent revelations by a public auditingagency that an allotment of wire-agency that an allotment of wire-agency that an allotment of wire-agency that an allotment of wire-less-telephone spectrum in 2008 fa-less-telephone spectrum in 2008 fa-less-telephone spectrum in 2008 fa-less-telephone spectrum in 2008 fa-vored a few companies and caused avored a few companies and caused avored a few companies and caused avored a few companies and caused aloss of as much as $40 billion in po-loss of as much as $40 billion in po-loss of as much as $40 billion in po-loss of as much as $40 billion in po-tential revenue for the government.tential revenue for the government.tential revenue for the government.tential revenue for the government.The main opposition Bharatiya Ja-The main opposition Bharatiya Ja-The main opposition Bharatiya Ja-The main opposition Bharatiya Ja-nata Party and others managed tonata Party and others managed tonata Party and others managed tonata Party and others managed todisrupt the entire winter session ofdisrupt the entire winter session ofdisrupt the entire winter session ofdisrupt the entire winter session ofParliament, which ended last week,Parliament, which ended last week,Parliament, which ended last week,Parliament, which ended last week,and have vowed to stay on the at-and have vowed to stay on the at-and have vowed to stay on the at-and have vowed to stay on the at-tack in coming months.tack in coming months.tack in coming months.tack in coming months.

The onions price rise has addedThe onions price rise has addedThe onions price rise has addedThe onions price rise has addedanother powerful weapon to theanother powerful weapon to theanother powerful weapon to theanother powerful weapon to theBJPs arsenal. Prakash Javadekar, aBJPs arsenal. Prakash Javadekar, aBJPs arsenal. Prakash Javadekar, aBJPs arsenal. Prakash Javadekar, aBJP spokesman, Wednesday blamedBJP spokesman, Wednesday blamedBJP spokesman, Wednesday blamedBJP spokesman, Wednesday blamedthe onion price rise on governmentthe onion price rise on governmentthe onion price rise on governmentthe onion price rise on governmentmismanagement and hoarding bymismanagement and hoarding bymismanagement and hoarding bymismanagement and hoarding bytraders.traders.traders.traders.

Manish Tiwari, a spokesman forManish Tiwari, a spokesman forManish Tiwari, a spokesman forManish Tiwari, a spokesman forthe Congress party, said the govern-the Congress party, said the govern-the Congress party, said the govern-the Congress party, said the govern-ment is doing everything in itsment is doing everything in itsment is doing everything in itsment is doing everything in itspower to bring the price down.power to bring the price down.power to bring the price down.power to bring the price down.

That reduction cant happenThat reduction cant happenThat reduction cant happenThat reduction cant happensoon enough for many householdssoon enough for many householdssoon enough for many householdssoon enough for many householdsand onion sellers. At the Okhla veg-and onion sellers. At the Okhla veg-and onion sellers. At the Okhla veg-and onion sellers. At the Okhla veg-etable market in Delhi on Wednes-etable market in Delhi on Wednes-etable market in Delhi on Wednes-etable market in Delhi on Wednes-day, onion vendor Mohammed Chah-day, onion vendor Mohammed Chah-day, onion vendor Mohammed Chah-day, onion vendor Mohammed Chah-van lamented that until last week hevan lamented that until last week hevan lamented that until last week hevan lamented that until last week heused to sell daily about 30 bags,used to sell daily about 30 bags,used to sell daily about 30 bags,used to sell daily about 30 bags,each containing 65 kilograms of on-each containing 65 kilograms of on-each containing 65 kilograms of on-each containing 65 kilograms of on-ions. In the past two days, he hasions. In the past two days, he hasions. In the past two days, he hasions. In the past two days, he hassold a total of about 10, he said.sold a total of about 10, he said.sold a total of about 10, he said.sold a total of about 10, he said.

K. Bannerjee, a 71-year-old cus-K. Bannerjee, a 71-year-old cus-K. Bannerjee, a 71-year-old cus-K. Bannerjee, a 71-year-old cus-tomer, said he was furious at thetomer, said he was furious at thetomer, said he was furious at thetomer, said he was furious at thegovernments inability to control thegovernments inability to control thegovernments inability to control thegovernments inability to control theonion price. While onion and garliconion price. While onion and garliconion price. While onion and garliconion price. While onion and garlicare key items in Indian households,are key items in Indian households,are key items in Indian households,are key items in Indian households,I cant believe that the country isI cant believe that the country isI cant believe that the country isI cant believe that the country isshort of stock, he said. Sinceshort of stock, he said. Sinceshort of stock, he said. Sinceshort of stock, he said. SinceMarch, we have been hearing thatMarch, we have been hearing thatMarch, we have been hearing thatMarch, we have been hearing thatthe prices will fall but nothing hasthe prices will fall but nothing hasthe prices will fall but nothing hasthe prices will fall but nothing hasbeen done.been done.been done.been done.

Others are finding alternatives.Others are finding alternatives.Others are finding alternatives.Others are finding alternatives.Dayal Singh, manager at Code, aDayal Singh, manager at Code, aDayal Singh, manager at Code, aDayal Singh, manager at Code, aDelhi restaurant, said his kitchenDelhi restaurant, said his kitchenDelhi restaurant, said his kitchenDelhi restaurant, said his kitchenhas switched to radishes in dishes,has switched to radishes in dishes,has switched to radishes in dishes,has switched to radishes in dishes,to try to replicate the onions pun-to try to replicate the onions pun-to try to replicate the onions pun-to try to replicate the onions pun-gent effect. We have to wait untilgent effect. We have to wait untilgent effect. We have to wait untilgent effect. We have to wait untilprices come off by at least 40% fromprices come off by at least 40% fromprices come off by at least 40% fromprices come off by at least 40% fromthe current level to get back to ourthe current level to get back to ourthe current level to get back to ourthe current level to get back to ourusual offering, he said.usual offering, he said.usual offering, he said.usual offering, he said.

ByByByBy Romit GuhaRomit GuhaRomit GuhaRomit Guha,,,, AbhrajitAbhrajitAbhrajitAbhrajitGangopadhyayGangopadhyayGangopadhyayGangopadhyay

AndAndAndAnd Diksha SahniDiksha SahniDiksha SahniDiksha Sahni

FY 2008 FY 09 FY 100

0.5

1.0

1.5

2.0

Bangladesh

Malaysia

UAESri Lanka

Other countries

Onion tradeIndias exports ofonions, in millionsof metric tons

Note: Fiscal years end March31 of the years shownSource: Agricultural andProcessed Food ProductsExport Development Authority

It was the height of the ColdIt was the height of the ColdIt was the height of the ColdIt was the height of the ColdWar and Hollywood films wereWar and Hollywood films wereWar and Hollywood films wereWar and Hollywood films werestill off-limits in Russia. Stalin hadstill off-limits in Russia. Stalin hadstill off-limits in Russia. Stalin hadstill off-limits in Russia. Stalin hadjust passed away and the newlyjust passed away and the newlyjust passed away and the newlyjust passed away and the newlyappointed Nikita Khruschev wasappointed Nikita Khruschev wasappointed Nikita Khruschev wasappointed Nikita Khruschev waslooking for ways to allow Russianslooking for ways to allow Russianslooking for ways to allow Russianslooking for ways to allow Russiansmore than Communistmore than Communistmore than Communistmore than Communistpropaganda.propaganda.propaganda.propaganda.

The answer, part of a culturalThe answer, part of a culturalThe answer, part of a culturalThe answer, part of a culturalperiod known as Khruschevsperiod known as Khruschevsperiod known as Khruschevsperiod known as KhruschevsThaw, which began followingThaw, which began followingThaw, which began followingThaw, which began followingStalins death in 1953, was to letStalins death in 1953, was to letStalins death in 1953, was to letStalins death in 1953, was to letin Bollywood films. Then-Indianin Bollywood films. Then-Indianin Bollywood films. Then-Indianin Bollywood films. Then-IndianPrime Minister Jawaharlal NehruPrime Minister Jawaharlal NehruPrime Minister Jawaharlal NehruPrime Minister Jawaharlal Nehruwas tilting to Moscow and,was tilting to Moscow and,was tilting to Moscow and,was tilting to Moscow and,although India was still officiallyalthough India was still officiallyalthough India was still officiallyalthough India was still officiallynon-aligned, films from Mumbainon-aligned, films from Mumbainon-aligned, films from Mumbainon-aligned, films from Mumbaiwere preferable for Sovietwere preferable for Sovietwere preferable for Sovietwere preferable for Sovietauthorities over cultural importsauthorities over cultural importsauthorities over cultural importsauthorities over cultural importsfrom the U.S.from the U.S.from the U.S.from the U.S.

In homage to this unexpectedIn homage to this unexpectedIn homage to this unexpectedIn homage to this unexpectedcultural exchange, Russiancultural exchange, Russiancultural exchange, Russiancultural exchange, RussianPresident Dmitry MedvedevPresident Dmitry MedvedevPresident Dmitry MedvedevPresident Dmitry Medvedevvisited Yash Raj Studios invisited Yash Raj Studios invisited Yash Raj Studios invisited Yash Raj Studios inMumbai, a major Bollywood filmMumbai, a major Bollywood filmMumbai, a major Bollywood filmMumbai, a major Bollywood filmenterprise set up in 2007 byenterprise set up in 2007 byenterprise set up in 2007 byenterprise set up in 2007 byimpresario Yash Chopra.impresario Yash Chopra.impresario Yash Chopra.impresario Yash Chopra.

That isnt a usual stop for aThat isnt a usual stop for aThat isnt a usual stop for aThat isnt a usual stop for avisiting head of state to India, butvisiting head of state to India, butvisiting head of state to India, butvisiting head of state to India, butit speaks to a romantic vision ofit speaks to a romantic vision ofit speaks to a romantic vision ofit speaks to a romantic vision ofBollywood that many olderBollywood that many olderBollywood that many olderBollywood that many olderRussians remember with fondness.Russians remember with fondness.Russians remember with fondness.Russians remember with fondness.

Our country is one of theOur country is one of theOur country is one of theOur country is one of theplaces where Indian culture isplaces where Indian culture isplaces where Indian culture isplaces where Indian culture ismost admired, Mr. Medvedevmost admired, Mr. Medvedevmost admired, Mr. Medvedevmost admired, Mr. Medvedevsaid Tuesday at a joint newssaid Tuesday at a joint newssaid Tuesday at a joint newssaid Tuesday at a joint newsconference with Indian Primeconference with Indian Primeconference with Indian Primeconference with Indian PrimeMinister Manmohan Singh.Minister Manmohan Singh.Minister Manmohan Singh.Minister Manmohan Singh.Russia and India are the onlyRussia and India are the onlyRussia and India are the onlyRussia and India are the only

countries where satellite channelscountries where satellite channelscountries where satellite channelscountries where satellite channelsbroadcast Indian movies 24/7.broadcast Indian movies 24/7.broadcast Indian movies 24/7.broadcast Indian movies 24/7.

Indians who traveled toIndians who traveled toIndians who traveled toIndians who traveled toMoscow, East Berlin or otherMoscow, East Berlin or otherMoscow, East Berlin or otherMoscow, East Berlin or otherparts of the Communist Bloc inparts of the Communist Bloc inparts of the Communist Bloc inparts of the Communist Bloc inthe late 1950s and 1960sthe late 1950s and 1960sthe late 1950s and 1960sthe late 1950s and 1960sremember ushanka-wearing Sovietremember ushanka-wearing Sovietremember ushanka-wearing Sovietremember ushanka-wearing Sovietsoldiers, who spoke no Hindi andsoldiers, who spoke no Hindi andsoldiers, who spoke no Hindi andsoldiers, who spoke no Hindi andhad likely never been to India,had likely never been to India,had likely never been to India,had likely never been to India,being able to sing famous songsbeing able to sing famous songsbeing able to sing famous songsbeing able to sing famous songsfrom Raj Kapoor films like Shreefrom Raj Kapoor films like Shreefrom Raj Kapoor films like Shreefrom Raj Kapoor films like Shree420 and Awara.420 and Awara.420 and Awara.420 and Awara.

But Mr. Medvedevs visit isntBut Mr. Medvedevs visit isntBut Mr. Medvedevs visit isntBut Mr. Medvedevs visit isntjust about nostalgia for a bygonejust about nostalgia for a bygonejust about nostalgia for a bygonejust about nostalgia for a bygoneera. Theres a business angle, too.era. Theres a business angle, too.era. Theres a business angle, too.era. Theres a business angle, too.

According to the Indo-AsianAccording to the Indo-AsianAccording to the Indo-AsianAccording to the Indo-AsianNews Service, Moscow and NewNews Service, Moscow and NewNews Service, Moscow and NewNews Service, Moscow and NewDelhi are mulling financing aDelhi are mulling financing aDelhi are mulling financing aDelhi are mulling financing aremake of famous Raj Kapoorremake of famous Raj Kapoorremake of famous Raj Kapoorremake of famous Raj Kapoorfilms with casts made up of actorsfilms with casts made up of actorsfilms with casts made up of actorsfilms with casts made up of actorsfrom India and Russia.from India and Russia.from India and Russia.from India and Russia.

Mr. Medvedev was to visit RKMr. Medvedev was to visit RKMr. Medvedev was to visit RKMr. Medvedev was to visit RKStudios in Mumbai, which Mr.Studios in Mumbai, which Mr.Studios in Mumbai, which Mr.Studios in Mumbai, which Mr.Kapoor set up in the 1950s andKapoor set up in the 1950s andKapoor set up in the 1950s andKapoor set up in the 1950s andwas the location for the shootingwas the location for the shootingwas the location for the shootingwas the location for the shootingof many of his classic films. Butof many of his classic films. Butof many of his classic films. Butof many of his classic films. Butthe trip was canceled due tothe trip was canceled due tothe trip was canceled due tothe trip was canceled due tologistical reasons, the Businesslogistical reasons, the Businesslogistical reasons, the Businesslogistical reasons, the BusinessStandard reported.Standard reported.Standard reported.Standard reported.

Tom WrightTom WrightTom WrightTom Wright

On Delhi Streets, Tiger,TigerOn Delhi Streets, Tiger,TigerOn Delhi Streets, Tiger,TigerOn Delhi Streets, Tiger,TigerBurning BrightBurning BrightBurning BrightBurning Bright

Starting next week, DelhiStarting next week, DelhiStarting next week, DelhiStarting next week, Delhiresidentsunsurprised by cows orresidentsunsurprised by cows orresidentsunsurprised by cows orresidentsunsurprised by cows orthe occasional camel orthe occasional camel orthe occasional camel orthe occasional camel orelephantwill spot an unusualelephantwill spot an unusualelephantwill spot an unusualelephantwill spot an unusualbeast around the city: the Bengalbeast around the city: the Bengalbeast around the city: the Bengalbeast around the city: the BengalTiger.Tiger.Tiger.Tiger.

Artiger, a public art projectArtiger, a public art projectArtiger, a public art projectArtiger, a public art projectthat aims to raise funds for tigerthat aims to raise funds for tigerthat aims to raise funds for tigerthat aims to raise funds for tigerconservation, will install 56 life-conservation, will install 56 life-conservation, will install 56 life-conservation, will install 56 life-size fiberglass sculptures of tigerssize fiberglass sculptures of tigerssize fiberglass sculptures of tigerssize fiberglass sculptures of tigerscreated by well-known artists atcreated by well-known artists atcreated by well-known artists atcreated by well-known artists atdifferent spots across the capital.different spots across the capital.different spots across the capital.different spots across the capital.

The trio behind the projectThe trio behind the projectThe trio behind the projectThe trio behind the project

drew inspiration from Londonsdrew inspiration from Londonsdrew inspiration from Londonsdrew inspiration from LondonsElephant Parade, which tookElephant Parade, which tookElephant Parade, which tookElephant Parade, which tookplace earlier this year and raisedplace earlier this year and raisedplace earlier this year and raisedplace earlier this year and raised4 million ($6.2 million) for4 million ($6.2 million) for4 million ($6.2 million) for4 million ($6.2 million) forconservation by placing sculpturesconservation by placing sculpturesconservation by placing sculpturesconservation by placing sculpturesof elephants around that city.of elephants around that city.of elephants around that city.of elephants around that city.

We witnessed the ElephantWe witnessed the ElephantWe witnessed the ElephantWe witnessed the ElephantParade and thought, why not doParade and thought, why not doParade and thought, why not doParade and thought, why not dosomething like this in our city assomething like this in our city assomething like this in our city assomething like this in our city aswell to raise awareness for thewell to raise awareness for thewell to raise awareness for thewell to raise awareness for thetigers? said social activisttigers? said social activisttigers? said social activisttigers? said social activistNandita Baig, who developed theNandita Baig, who developed theNandita Baig, who developed theNandita Baig, who developed theidea together with Seven Artidea together with Seven Artidea together with Seven Artidea together with Seven ArtLimited gallery director AparajitaLimited gallery director AparajitaLimited gallery director AparajitaLimited gallery director AparajitaJain and Swapan Seth, ofJain and Swapan Seth, ofJain and Swapan Seth, ofJain and Swapan Seth, ofadvertising firm Equus Red Cell.advertising firm Equus Red Cell.advertising firm Equus Red Cell.advertising firm Equus Red Cell.

This week, the tigers made aThis week, the tigers made aThis week, the tigers made aThis week, the tigers made aspecial appearance at thespecial appearance at thespecial appearance at thespecial appearance at theRashtrapati Bhavan presidentialRashtrapati Bhavan presidentialRashtrapati Bhavan presidentialRashtrapati Bhavan presidentialpalace. From next Monday, theypalace. From next Monday, theypalace. From next Monday, theypalace. From next Monday, theywill disperse to more than 50will disperse to more than 50will disperse to more than 50will disperse to more than 50locations across the city for thelocations across the city for thelocations across the city for thelocations across the city for thenext six weeks, including parks,next six weeks, including parks,next six weeks, including parks,next six weeks, including parks,malls, cinemas and hotels.malls, cinemas and hotels.malls, cinemas and hotels.malls, cinemas and hotels.

People will not see a simplePeople will not see a simplePeople will not see a simplePeople will not see a simple

yellow-and-black striped tiger.yellow-and-black striped tiger.yellow-and-black striped tiger.yellow-and-black striped tiger.Each piece in the collection is aEach piece in the collection is aEach piece in the collection is aEach piece in the collection is aconceptual work, Ms. Jain said.conceptual work, Ms. Jain said.conceptual work, Ms. Jain said.conceptual work, Ms. Jain said.One artist, for instance, hasOne artist, for instance, hasOne artist, for instance, hasOne artist, for instance, hastaken a sculpture of a tiger andtaken a sculpture of a tiger andtaken a sculpture of a tiger andtaken a sculpture of a tiger andput a barbed wire around it toput a barbed wire around it toput a barbed wire around it toput a barbed wire around it tosignify the effects of deforestationsignify the effects of deforestationsignify the effects of deforestationsignify the effects of deforestationand urbanization.and urbanization.and urbanization.and urbanization.

After their time on the streets,After their time on the streets,After their time on the streets,After their time on the streets,the tigers will go to corporationsthe tigers will go to corporationsthe tigers will go to corporationsthe tigers will go to corporationsthat have paid 150,000 rupeesthat have paid 150,000 rupeesthat have paid 150,000 rupeesthat have paid 150,000 rupees($3,318) each to adopt the($3,318) each to adopt the($3,318) each to adopt the($3,318) each to adopt thetigers, which were created bytigers, which were created bytigers, which were created bytigers, which were created byartists including Anjolie Elaartists including Anjolie Elaartists including Anjolie Elaartists including Anjolie ElaMenon, Suhasini Kejriwal and G.R.Menon, Suhasini Kejriwal and G.R.Menon, Suhasini Kejriwal and G.R.Menon, Suhasini Kejriwal and G.R.Iranna among others.Iranna among others.Iranna among others.Iranna among others.

An auction Sunday decidedAn auction Sunday decidedAn auction Sunday decidedAn auction Sunday decidedwhich tiger would go to whichwhich tiger would go to whichwhich tiger would go to whichwhich tiger would go to whichcorporate sponsor. The funds arecorporate sponsor. The funds arecorporate sponsor. The funds arecorporate sponsor. The funds aregoing to the Ranthamboregoing to the Ranthamboregoing to the Ranthamboregoing to the RanthamboreFoundation, a tiger conservationFoundation, a tiger conservationFoundation, a tiger conservationFoundation, a tiger conservationtrust run.trust run.trust run.trust run.

Ms. Jain said people arentMs. Jain said people arentMs. Jain said people arentMs. Jain said people arentreally aware of how close thereally aware of how close thereally aware of how close thereally aware of how close theBengal TigerIndias nationalBengal TigerIndias nationalBengal TigerIndias nationalBengal TigerIndias national

animalis to extinction, notinganimalis to extinction, notinganimalis to extinction, notinganimalis to extinction, notingthat a recent campaign in India bythat a recent campaign in India bythat a recent campaign in India bythat a recent campaign in India bya cellphone firm that trumpeteda cellphone firm that trumpeteda cellphone firm that trumpeteda cellphone firm that trumpetedthe number of the countrysthe number of the countrysthe number of the countrysthe number of the countrysremaining tigers was an eye-remaining tigers was an eye-remaining tigers was an eye-remaining tigers was an eye-opener for many. (The number isopener for many. (The number isopener for many. (The number isopener for many. (The number is1,411, according to the1,411, according to the1,411, according to the1,411, according to theconservation nonprofit Wildlifeconservation nonprofit Wildlifeconservation nonprofit Wildlifeconservation nonprofit WildlifeInstitute of India.)Institute of India.)Institute of India.)Institute of India.)

The Artiger initiative is theThe Artiger initiative is theThe Artiger initiative is theThe Artiger initiative is thelatest in a slew of tiger campaignslatest in a slew of tiger campaignslatest in a slew of tiger campaignslatest in a slew of tiger campaignsin 2010, the year of the tiger,in 2010, the year of the tiger,in 2010, the year of the tiger,in 2010, the year of the tiger,according to the Chinese calendar.according to the Chinese calendar.according to the Chinese calendar.according to the Chinese calendar.Last month, officials fromLast month, officials fromLast month, officials fromLast month, officials fromcountries that have tigercountries that have tigercountries that have tigercountries that have tigerpopulations met in Russia topopulations met in Russia topopulations met in Russia topopulations met in Russia todiscuss ways to double thediscuss ways to double thediscuss ways to double thediscuss ways to double thenumber of tigers in the world bynumber of tigers in the world bynumber of tigers in the world bynumber of tigers in the world by2022. The tiger population in2022. The tiger population in2022. The tiger population in2022. The tiger population inIndia accounts for about 40% ofIndia accounts for about 40% ofIndia accounts for about 40% ofIndia accounts for about 40% ofthe worlds remaining tigers.the worlds remaining tigers.the worlds remaining tigers.the worlds remaining tigers.

Diksha SahniDiksha SahniDiksha SahniDiksha Sahni

Keep up on India minute byKeep up on India minute byKeep up on India minute byKeep up on India minute byminute with The Wall Streetminute with The Wall Streetminute with The Wall Streetminute with The Wall StreetJournals India Real Time atJournals India Real Time atJournals India Real Time atJournals India Real Time athttp://blogs.wsj.com/indiarealtimehttp://blogs.wsj.com/indiarealtimehttp://blogs.wsj.com/indiarealtimehttp://blogs.wsj.com/indiarealtime

Rekindling Russias Bollywood love affairRekindling Russias Bollywood love affairRekindling Russias Bollywood love affairRekindling Russias Bollywood love affair

A scene from Raj Kapoors 1955 classic Bollywood film, Shree 420.A scene from Raj Kapoors 1955 classic Bollywood film, Shree 420.A scene from Raj Kapoors 1955 classic Bollywood film, Shree 420.A scene from Raj Kapoors 1955 classic Bollywood film, Shree 420.

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IN THE MATTER OF CONTINENTALREINSURANCE COMPANY LTD.

(Company No. LL06527)(Incorporated in the Federal Territory of Labuan,Malaysia)

ANDIN THE MATTER OF SECTION 169(4) OFTHE LABUAN FINANCIAL SERVICES

AND SECURITIES ACT 2010NOTICE OF SURRENDER OF INSURANCE

LICENCE NO IS200894Notice is hereby given that CONTINENTALREINSURANCE COMPANY LTD. intends tosurrender its Insurance Licence No IS200894issued by Labuan Financial ServicesAuthority and the surrender shall take effectafter twenty one (21) days from the date ofpublication of this notice.

Dated this 23 day of December 2010

This notice is inserted by ContinentalReinsurance Company Ltd.

6 THE WALL STREET JOURNAL. Thursday - Monday, December 23 - 27, 2010

WORLD NEWS

New Start for ArmsControl

Current Arsenal: U.S.

dingbat Strategic warheads: 1,968dingbat Tactical nuclear weapons: 500dingbat Total warheads (including active,decommissioning and stockpiled):9,600

Current Arsenal: Russia

dingbat Strategic warheads: 2,600dingbat Tactical nuclear weapons: 2,050dingbat Total warheads: (including active,decommissioning and stockpiled):12,000

Treaty Limits for U.S. and Russia

dingbat Deployed strategic warheads:1,550dingbat Weapon-delivery systems(including ICBMs, submarinelaunchers and bombers): 800dingbat Deployed ICBMs, submarinemissiles and heavy bombers: 700dingbat Tactical nuclear weapons: notaddressed.

Source: Federation of American Scientists, StateDepartment

Arms pact shows splitin Republican ranks

WASHINGTONA new strategicarms agreement with Russia is onthe verge of being ratified by theU.S. Senate, presenting PresidentBarack Obama with a potential po-litical victory while exposing splitswithin the Republican Party onwhether to oppose the president onimportant national-security issues.

At least 11 Republican senatorsbroke Tuesday with party leadersand the emerging Republican presi-dential field, likely giving thetreatys backers enough votes to en-sure victory. The Senate voted 67-28to move to a final vote on the NewStrategic Arms Reduction Treaty, orNew Start.

If those tallies hold, the pact willmeet the two-thirds margin neededfor ratification. Many lawmakers be-lieve the treaty will gain more sup-porters.

A strong final vote for ratifica-tion, which was expected to takeplace Wednesday, could reassureEuropean allies who supported thetreaty that Mr. Obama still hasenough political muscle to backwords with deeds after Democratsmidterm defeat. Ratification wouldmark the first time any Democraticpresident has successfully negoti-ated and ratified a nuclear-arms re-duction treaty.

The long and winding road toratification roiled the GOP in a pol-icy area long considered a strength.Days ago, the treaty seemed to be injeopardy, as the Senates top Repub-lican, Minority Leader Mitch McCo-nnell (R., Ky.), and his second-in-command, Sen. Jon Kyl (R., Ariz.),announced their opposition.

That opposition was echoed bysome potential presidential candi-

dates, many of whom are stakingout ground to the right of their con-gressional colleagues.

Former Massachusetts Gov. MittRomney wrote in the WashingtonPost July 6 that New Start was Mr.Obamas worst foreign policy mis-take yet.

Sen. John Thune of South Da-kota, another potential Republicancontender, condemned the accord.Former Alaska GOP Gov. Sarah Palin,writing in the National Review,

urged the Senate to defeat thetreaty, arguing that it was one-sided and makes no strategic sense.

This stance appears to have hadlittle effect on sitting lawmakers,with a string of Senate Republicansdropping their opposition to thetreaty, citing the near-unanimoussupport of the U.S. military and freshpromises from the White House.

The division suggests that de-bate within the GOP could divergealong two tracks, with a vocal set ofpresidential candidates looking tosharpen their ideological differenceswith Democrats, while some in Con-gress say the party has to show con-crete achievements. A number ofpotential candidates also opposedthe tax compromise hashed out be-tween the president and Senate Re-publicans.

Kevin Madden, a Republicanstrategist who advised Mr. Romneyin 2008, said that once the presi-dential race begins in earnest, Re-publican lawmakers in Washingtonwould be pulled to the right on anarray of issues, following the lead ofthe potential candidates.

To many in the foreign policy es-tablishment, the split over NewStart was eye-opening.

Leslie Gelb, president-emeritusof the Council on Foreign Relations,said leaders abroad were mystifiedat Republican opposition to a treatythat if anything was initially criti-cized for being too modest. The de-bate, he said, seriously damages[Republican] credibility on nationalsecurity.

The treaty limits the U.S. and theRussian Federation to 1,550 de-ployed warheads, a cut of aboutone-third, and 700 deployed launch-ers. It would also resume inspec-tions of nuclear weapons facilitieson both sides.

BY NAFTALI BENDAVIDAND JONATHANWEISMAN

PRNewsFoto

Test of Lockheed Martins Terminal High Altitude Area Defense Weapon System on Kauai, Hawaii, in June.

U.S. GDP revised upas inventories grew

The U.S. economy grew slightlymore than previously thought in thethird quarter as companies boostedinventories, showing the recoveryregained steam after a brief slow-down.

Gross domestic product, thevalue of all goods and services pro-duced, rose at a seasonally and in-flation-adjusted annual rate of 2.6%in July through September, the Com-merce Department said Wednesday.

In the governments previous re-port of how the economy performed,released a month ago, GDP was esti-mated to have increased by 2.5% inthe third quarter, following a mea-ger 1.7% in the second quarter. Themain revisions were to consumerspending, which rose by less thanpreviously estimated, and to com-pany inventories, which increased bymore than previously thought.

The economic recovery thatstarted in June 2009 hit a stumblingblock in the spring of 2010. Just asthe positive impact from the fiscalstimulus and stock building by firmswas fading, U.S. financial marketswere hit by Europes debt crisis, re-newing fears of a double-dip reces-

sion. But once that passed, compa-nies started producing goods againto restock ahead of the holidayshopping season. A recent pickup inconsumer spending and the tax cutsapproved by Congress last week arenow seen boosting growth further.

The report was the third and fi-nal one made by the government forthe July through September period.Economists surveyed by Dow JonesNewswires had forecast it wouldshow GDP rising by a higher 2.9%.

Third-quarter business invento-ries rose by $121.4 billion, revised upfrom the $111.5 billion increase pre-viously estimated and up from $68.8billion in the second quarter.

Corporate profits were reviseddown, rising by 2.4% from a previ-ously reported 3.2% increase. Still,the profit level is the highest annualrate on record. Many U.S. compa-nies, especially large ones, are flushwith cash and are geared up to poststrong earnings growth in 2011.

Meantime, the report showedconsumer spending, accounting forabout 70% of demand in the U.S.economy, rose 2.4%, down from apreviously estimated 2.8% increase.Though revised lower, the rise inconsumer spending remains the big-gest since before the recession.

BY LUCA DI LEOBY SARAH N. LYNCH

Dont ask repealis signed into law

WASHINGTONWith gay veter-ans standing over his shoulder, Pres-ident Barack Obama signed a law al-lowing homosexuals to serve openlyin the military, hailing the hard-fought measure as a landmark in astruggle for equality and civil rights.

The emotional ceremony ended abattle that has been going on for de-cades, long before President BillClinton in 1993 signed what wassupposed to be a compromise allow-ing gays into the military so long asthey didnt reveal their sexual orien-tation. That dont ask, dont tellpolicy rested uneasily for nearly twodecades.

The chairman of the Joint Chiefsof Staff, Adm. Mike Mullen, had op-posed the policy, saying it encour-aged U.S. servicemen to lie to theircountry and sacrifice their integrity.

Mr. Obama told a story of his re-cent, secret trip to Afghanistan, say-ing a young military woman pulledhim into a hug and whispered: Getthe repeal done.

I said to her, I promise I will,for we are not a nation that saysdont ask, dont tell, we are a nationthat says out of many, we are one.We are a nation that welcomes theservice of every patriot. We are anation that says all men are createdequally, the president said.

He said the new law wouldstrengthen our national securityand uphold the ideals our fightingmen and women risk their lives todefend.

Opponents of the repeal, includ-ing prominent Republican veteranssuch as Sen. John McCain of Ari-zona, say they fear the repeal willhurt military cohesion when the U.S.is fighting two wars. Marine Corps

Commandant James Amos has saidthe repeal could impact combat ef-fectiveness.

At the signing ceremony, Mr.Mullen, the joint chiefs chairman,stood on stage with Mr. Obama,along with Marine Staff Sgt. EricAlva, the first American wounded inIraq. With them was CommanderZoe Dunning, a U.S. Naval Academygraduate who came out as a lesbianat a public rally during the 1993 ef-fort to end the ban on gays in themilitary.

Mr. Alva was awarded the PurpleHeart after a landmine blew off a legand broke his right arm. After hismedical discharge, he went to workfor the gay-rights group HumanRights Campaign to lobby for thedont ask, dont tell repeal.

Ms. Dunning won a two-and-a-half-year legal fight to remain in theNavy Reserves, retiring in 2007 asone of the few veterans to serve asan openly gay officer for 13 years.

The signing of the law does notend dont ask, dont tell immedi-ately, a point Mr. Obama made as awarning to service members whomight quickly announce themselvesas gay. The military leadership andthe president must first certify thatthe change will not hurt troop readi-ness. But Mr. Obama promised toimplement the repeal swiftly andefficiently.

The signing came on what islikely the final day of the 111th Con-gress. A swarm of Democratscheered as Mr. Obama acknowledgedoutgoing House Speaker NancyPelosi (D., Calif.), Senate MajorityLeader Harry Reid (D., Nev.), and es-pecially Rep. Patrick Murphy (D.,Pa.), an Iraq War veteran.

Jared A. Favole contributedto this article.

BY JONATHANWEISMAN

Thursday - Monday, December 23 - 27, 2010 THE WALL STREET JOURNAL. 7

8 * * THE WALL STREET JOURNAL. Thursday - Monday, December 23 - 27, 2010

WORLD NEWS

U.S. hits Iran shipper,guard with sanctions

WASHINGTONThe Obama ad-ministration enacted new financialsanctions on Irans elite militaryunit and its largest shipping com-pany, as the U.S. intensifies effortsto choke Tehran off from the globalfinancial system.

The U.S. Treasury Departmentsannouncement Tuesday came justweeks ahead of a scheduled secondround of negotiations in Turkey be-tween Iran and the internationalcommunity focused on containingTehrans nuclear program, whichIran says is peaceful in nature.

Senior U.S. officials said the newmeasures illustrate that Washingtonand its allies wont relax their finan-cial campaign against Iran even asthe diplomatic process continues inlate January. Its clear that our pol-icy is going to be to continue to im-pose pressure on Iran so long as itdefies its international obligations,said Stuart Levey, the Treasuryspoint man on Iran sanctions.

The five permanent members ofthe United Nations Security Council,plus Germany, held an earlier diplo-matic round with Iran on Dec. 6-7 inGeneva. The talks registered littleprogress and have sparked concernthat Iran may seek to use the diplo-macy as a means to deflect interna-tional pressure while continuing toadvance its nuclear capabilities.

The Treasury on Tuesday height-ened its financial war against Iransprincipal military organization, theIslamic Revolutionary Guard Corps,by blacklisting two banks and a fi-nancial foundation allegedly aidingthe IRGCs activities.

The Obama administrationcharges that the guard corps is thedriving force behind Irans nuclearand ballistic-missile programs andhas overseen a crackdown on Presi-dent Mahmoud Ahmadinejads polit-ical opponents over the past 18months. The IRGC and its hundredsof affiliated companies have alsotaken a dominant position inside theIranian economy in recent years, ac-cording to Iran analysts, crowdingout private businesses.

The new U.S. measures barAmericans from doing business withthe designated Iranian entities and

would freeze any assets they holdinside the U.S. Foreign companiesdoing business with Ansar and Mehrbanks, as well as the Bonyad TaavonSepah foundation, risk being bannedfrom the U.S. financial system.

The Treasury said BonyadTaavon Sepah oversees and struc-tures IRGC investments. Ansar Bank,it said, provides financial credit toIRGC personnel, while Mehr Bankprovides financial services to theIRGCs Bassij, a volunteer militia.The Treasury also sanctioned Moal-lem Insurance Co., described as theprimary maritime insurer for ves-sels owned by the Islamic Republicof Iran Shipping Lines, or IRISL.

Washington and its allies havebeen engaged in a global cat-and-mouse game with IRISL, Irans big-gest shipper, over the past twoyears as the U.S. has sought to hob-ble Tehrans ability to import andexport goods.

The Treasury first blacklistedIRISL in 2008 for allegedly aidingIrans arms shipments. The shippingfirm has renamed a number of itsaffiliated companies and often sailsits ships under false flags, accordingto U.S. officials. IRISL has also beencharged with repainting its boats toavoid detection.

Still, U.S., U.N. and Europeansanctions are taking a growing toll

on IRISL, said U.S. officials. Britishand Bermudan insurance consor-tiums, key players in the globalmarket, have stopped insuring itsships. IRISIL has increasingly turnedto Moallem Insurance to underwriteits ships.

U.S. officials said Tuesday thatthe growing financial pressure onIRISL has caused the company todefault on more than $500 millionin debts in recent months. In Sep-tember, Singapores governmentseized three IRISL ships for alleg-edly defaulting on a $235 millionloan owed to Frances Credit Agri-cole SA. Singapore is currentlyseeking to auction off the threeships to cover the debts.

U.S. officials said two otherIRISL ships have been seized andthat the company has faced troublesin Hong Kong and Malta. The com-pany has to think before they dockin any port: Is this going to be safefor us? said Adam Szubin, whoheads the Treasury DepartmentsOffice of Foreign Assets Control.

IRISL denies it is facing financialdifficulties and says the interna-tional sanctions imposed on it areillegal. IRISL Chairman MohammadDajmar also said his company hasntdefaulted on its debt and that CreditAgricole called in its loan early dueto international pressure.

BY JAY SOLOMON

New release of taped remarks shakes U.K. coalitionThe U.K.s increasingly rattled

coalition government suffered newembarrassments Wednesday fromsecretly taped complaints about thecoalition by members of its juniorpartner, even as senior officials at-tempted to play down fractures inthe seven-month-old government.

The coalition between the Con-servative and Liberal Democrat par-ties has been hit by anger from Lib-eral Democrat voters that theirtypically left-leaning party hasbacked the Tories aggressive mea-sures on deficit reduction.

Comments by three Liberal Dem-ocrat government ministerstapedby the Daily Telegraph newspa-perrevealed private concern overcoalition policies on welfare reform

and tuition fees.The Daily Telegraph recorded

Steve Webb, Michael Moore and EdDavey criticizing government poli-cies such as a cut to child benefitfor higher-rate taxpayers and plansto limit housing benefits. Mr. Mooresaid some Conservative ministerswere on a different planet.

The partys troubles deepenedthis week when Vince Cableone ofthe most influential members of thejunior coalition partnerwasstripped of key responsibilities afterhe was caught on an undercover re-porters tape saying he had de-clared war on Rupert MurdochsNews Corp.

Mr. Cable had been slated tomake a key regulatory decision re-garding News Corp.s proposal to ac-quire the remainder of British Sky

Broadcasting Group PLC that itdoesnt already own.

Yet both parties will likely seekto ride out the latest blow to theirunion, as both stand to lose more ina divorce than by sticking with theirfractious marriage.

On Wednesday, Liberal Democratleader Nick Clegg, the deputy primeminister, said nobody should be sur-prised by reports of what LiberalDemocrat ministers said.

There are differences of opinionin a coalition as indeed there are inall governments, he said.

Yet the revelations severely un-dercut the picture of coalition coop-eration painted by Mr. Clegg andConservative Prime Minister DavidCameron. And the situation furtherweakens a Liberal Democrat partythat found itself in an unlikely posi-

tion of influence after a May elec-tion in which no party won a major-ity of Parliament.

This will be taken as LiberalDemocrats bitching behind thescenes and not getting things done,and that will affect Nick Cleggs nar-rative that the party is achievingthings in the government, saidSteven Fielding, professor of politi-cal history at the University of Not-tingham.

Mr. Cables fall from grace alsoblunts the effectiveness of one ofthe partys most popular politiciansand its second-most-powerful cabi-net lawmaker.

For instance, Liberal Democratattempts to curb bonuses and risk-ier investing at banks will sufferfrom the loss of credibility by Mr.Cable, that agendas most effective

spokesman.The newspaper sting comes on

top of a months worth of woe forBritains third party.

Earlier this month, the party washeavily criticized after almost halfof its lawmakers voted for an in-crease in the higher education tu-ition fees. The party had pledgedbefore Mays election to vote downan increase.

The Daily Telegraphs Wednesdaycoverage of its secret recordings in-cluded Mr. Moore describing the tu-ition-fee increase as the biggest,ugliest, most horrific thing in all ofthis.

Most Liberal Democrats are look-ing nervously at a mid-January by-election in northern England thatthe party would once have been ex-pected to win.

BY ALISTAIR MACDONALD

Belarus presidentextends crackdown

MINSK, BelarusBelarussianPresident Alexander Lukashenko ex-tended his crackdown on opponentsTuesday, as authorities chargedaround 600 activists with takingpart in an unsanctioned protest andthreatened to disband political par-ties and organizations involved inSundays protest against his land-slide re-election.

At least four opposition candi-dates remained in detention Tues-day as Mr. Lukashenko sought tostamp out any embers of dissent af-ter around 20,000 people hit thestreets Sunday to protest a voteWestern observers said was deeplyflawed.

The activists will be locked upfor as long as 15 days, and the lead-ers of the protest face up to 15 yearsin prison for inciting violence, ifconvicted.

Hundreds of riot police had vio-lently dispersed the crowd and de-tained hundreds after a small groupof protesters attacked the main gov-ernment building.

Grigory Kostusyev, a rival candi-date who was released from deten-tion late Monday without charges,said the security service, still knownas the KGB, had tried to pressurehim into renouncing his oppositionto the government.

A KGB spokesman said he had nocomment on Mr. Kostusyevs accusa-tion.

The continued crackdown leavesthe European Union with a dilemmaon how to engage Belarus.

The EU has sought warmer rela-tions with the former Soviet state of9.5 million on its eastern borderwith Russia.

Mr. Lukashenko, traditionally astaunch ally of Russia during his 16-year rule, has in recent years begunflirting with the West as crucial oiland natural gas subsidies from Mos-cow have dwindled and relations be-come strained.

The EU, as well as the U.S. gov-ernment, criticized the vote andsubsequent crackdown, but has littlewiggle room given the failure ofprevious sanctions to bring aboutchange and the desire to avoidpushing Belarus further into thearms of Russia.

Political analysts said the EUwould continue to engage Mr. Lu-

kashenko and the less hard-linemembers of his government.

But they added that he was likelyto continue to play his Eastern andWestern neighbors off against eachother in search of the biggest politi-cal and economic support.

It depends how long he cankeep all the balls in the air, saidAndrew Wilson, a senior policy fel-low at the European Council on For-eign Relations.

But past experience has shownhim to be a pretty good juggler, headded.

Mr. Wilson said that the level ofviolence employed by the authori-ties would make engagement harder,and that the measures taken showedthat the security services hadgained at least a temporary upperhand over more-pragmatic forces inthe Belarussian government whowere looking for closer ties with theEU.

After brushing off Western criti-cism and declaring there would beno more hare-brained democracyin his country, Mr. Lukashenko didleave the door open for talks withsome rivals, such as economist Jaro-slav Romanchuk.

Other opposition figures dis-missed this as an attempt to createan opposition under his control.

The opposition is now in a tightspotcowed by the authorities andriven by discord over a plan of ac-tion and whether to look to Russiaor Europe.

But Alexander Milinkevich, anopposition leader who challengedMr. Lukashenko in the 2006 presi-dential election but didnt competethis time, said the crackdown wasnta total victory for the authoritarianruler.

You cant keep turning thescrews indefinitely, he said.

We need gradual liberalizationif we dont want a Romanian sce-nario, he added, referring to thebloody 1989 toppling of Romaniandictator Nicolae Ceaucescu.

BY JAMES MARSON

The European Union wantsto avoid pushing Belarusfurther into the arms ofRussia.

A member of Irans Revolutionary Guard on a captured U.S. helicopter, in April.

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Images

THURSDAY - MONDAY, DEC. 23 - 27, 2010 * *

&LIFE STYLEasia.WSJ.com

Cooking, without recipes 10HOWTOSTOREWINE 10

For some skiers heading to the slopes,the chance to tackle virgin snow and in-dulge in excessive tartiflette and vin chaudis enough of a lure. However, for others,like banker Michael Byron, a winter holidayis also a chance to enjoy some of the mostluxurious chalets available.

Last year, Mr. Byron spent a week in Cha-let Spa in Verbier with his wife and fourboys. Guests staying at Chalet Spaa chicfive-bedroom, slate-roofed timber cha-letcan expect to have a chauffeur on call;gadgets such as a home cinema and PlaySta-tion to keep even the most hard-to-pleaseteenagers occupied; a choice of two Jacuzzis,including one handmade from Canadian ce-darwood; and an in-house masseuse, whodoes everything from deep Swedish mas-sages to a Pilates stretching routine to helprestore muscles after a vigorous day on theslopes.

It was magnificent there, nothing wastoo much trouble and we had no desire toleave the chalet, says Mr. Byron. Thefamily also had a chef who catered totheir every whim: We are big fans of fu-sion food and sushi, and our children loveCalifornia rolls and like their sashimi tobe cut in a particular way at home. Thechef was able to replicate this for us, headds. At the end of the day, we are allthere to ski and to relax; it is potentiallydifficult with four kids, but after the holi-day they said there is only one place theywant to ever stay.

For well-heeled skiers like the By-rons, luxury chalets are increasingly becom-ing as much of an attraction as the slopes.In response, many chalets are seeking to of-fer a far more personal and hands-on expe-rience. For some visitors, that means achance to escape in comfort with the fam-ily. For others, it is the chance to be pam-pered from start to finish, without havingto lift a finger. Many of these new-breedchalets are all-inclusive, with 24/7 con-cierge and butler services, the finest wineson tap, fully stocked humidors and all thelatest technology, such as the childproof,coded security system at the 20-meter Cha-let Spa pool.

For Tom Illsley, who runs a solar-devel-opment company, staying at the 700-square-meter Hidden Dragon chalet in Ver-bier last year was a chance to let someoneelse do all the hard work. We were reallywell looked after, he says. We didnt getinvolved in the partying the town has to of-fer. Instead, we would have a relaxed din-ner, then kick back with a movie in the cin-ema with some popcorn. The chalet isspectacular and there was amazing atten-tion to detail.

That attention to detail meant that inthe mornings all their skis were preparedand loaded up in the Porsche Cayenne, andat the end of the day the chauffeur wouldmeet them on the slopes with steaming hotchocolate, ready to whisk them back to alavish tea and roaring fire. Guests here alsoget their clothes unpacked by the in-housebutler, enjoy on-site ski fittings and stepinto pre-warmed boots in the swish, gentle-mens-club-style ski room. There is also ahammam, meditation room and yoga deck,as well as an in-house masseuse offeringeverything from Reiki to Qigong. The

From hot tubs to haute cuisineA new breed of high-end ski chalets is offering luxurious amenities that cater to guest