Fiscal Cliff Talks: Boehner, Obama Meet Face-to-Face

For the first time in more than three weeks, President Obama and House Speaker John Boehner met face-to-face today at the White House to talk about avoiding the fiscal cliff.

White House Principal Deputy Press Secretary Josh Earnest would offer no details saying only, "The lines of communication remain open."

Erskine Bowles, the co-creator of a debt reducing plan, who was pessimistic a couple weeks ago, said he likes what he's hearing.

"Any time you have two guys in there tangoing, you have a chance to get it done," Bowles said on CBS's "Face the Nation."

The White House afternoon talks, conducted without cameras or any announcement until they were over, came as some Republicans were showing more flexibility about approving higher tax rates for the wealthy, one of the president's demands to keep the country from the so-called fiscal cliff -- a mixture of across-the-board tax increases and spending cuts that many economists say would send the country back into recession.

Carolyn Kaster/AP Photo; Pablo Martinez Monsivais/AP Photo

Fiscal Cliff Battle: President Obama vs. Speaker John Boehner Watch Video

"Let's face it. He does have the upper hand on taxes. You have to pass something to keep it from happening," Sen. Bob Corker of Tennessee said on "FOX News Sunday."

This comes after the White House moderated one of its demands about tax rate increases for the wealthy.

The administration was demanding the rate return to its former level of 39.6 percent on income above $250,000. The so-called Bush tax cut set that rate at 35 percent. But Friday, Vice President Joe Biden signaled that rate could be negotiable, somewhere between the two.

"So will I accept a tax increase as a part of a deal to actually solve our problems? Yes," said Oklahoma Republican Tom Coburn on ABC's "This Week."

The problems the senator was referring to are the country's entitlement programs. And there was some progress on that front, too.

A leading Democrat said means testing for Medicare recipients could be a way to cut costs to the government health insurance program. Those who make more money would be required to pay more for Medicare.

"I do believe there should be means testing, and those of us with higher income and retirement should pay more. That could be part of the solution," Sen. Dick Durbin of Illinois said on NBC's "Meet the Press."

But Durbin said he would not favor raising the eligibility age from 65 years old to 67 years old, as many Republicans have suggested.

The White House and the speaker's office released the exact same statement about the negotiating session. Some will see that as a sign of progress, that neither side is talking about what was said behind closed doors.

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Egypt's opposition rejects constitutional referendum

CAIRO (Reuters) - Egypt's main opposition coalition rejected on Sunday Islamist President Mohamed Mursi's plan for a constitutional referendum this week, saying it risked dragging the country into "violent confrontation".

Mursi's decision on Saturday to retract a decree awarding himself wide powers failed to placate opponents who accused him of plunging Egypt deeper into crisis by refusing to postpone the vote on a constitution shaped by Islamists.

"We are against this process from start to finish," Hussein Abdel Ghani, spokesman of the National Salvation Front, told a news conference, calling for more street protests on Tuesday.

The Front's main leaders - Nobel peace laureate Mohamed ElBaradei, former Foreign Minister Amr Moussa and leftist Hamdeen Sabahy - did not attend the event.

Hundreds of protesters milled around Mursi's palace, despite tanks, barbed wire and other barriers installed last week after clashes between Islamists and their rivals killed seven people.

"Holding a referendum now in the absence of security reflects haste and an absence of a sense of responsibility on the part of the regime, which risks pushing the country towards violent confrontation," a statement from the Front said.

The Muslim Brotherhood, which propelled Mursi from obscurity to power, urged the opposition to accept the referendum's verdict.

Islamists say the vote will seal a democratic transition that began when a popular uprising toppled Hosni Mubarak 22 months ago after three decades of military-backed one-man rule.

Their liberal, leftist and Christian adversaries say the document being fast-tracked through could threaten freedoms and fails to embrace the diversity of Egypt's 83 million people.

"ACT OF WAR"

Mursi had given some ground on Saturday when he annulled the fiercely contested decree issued on November 22 that gave him extra powers and shielded his decisions from judicial review.

But some measures taken under the decree remain in force and the president has insisted the referendum go ahead on December 15.

Liberal opposition leader Ahmed Said earlier described the race to a referendum as an "act of war" against Egyptians.

Egypt is torn between Islamists, who were suppressed for decades, and their rivals, who fear religious conservatives want to squeeze out other voices and restrict social freedoms. Many Egyptians just crave stability and economic recovery.

Brotherhood spokesman Mahmoud Ghozlan said the scrapping of Mursi's decree had removed any reason for controversy.

"We ask others to announce their acceptance of the referendum result," he said on the group's Facebook page, asking whether the opposition would accept "the basics of democracy".

The cancellation of Mursi's decree, announced after a "national dialogue" on Saturday boycotted by almost all the president's critics, has not bridged a deep political divide.

Prime Minister Hisham Kandil, a technocrat with Islamist leanings, said the referendum was the best test of opinion.

"The people are the makers of the future as long as they have the freedom to resort to the ballot box in a democratic, free and fair vote," he said in a cabinet statement.

But opposition factions, uncertain of their ability to vote down the constitution against the Islamists' organizational muscle, want the document redrafted before any vote.

"A constitution without consensus can't go to a referendum," said Hermes Fawzi, 28, a protester outside the palace. "It's not logical that just one part of society makes the constitution."

DIALOGUE

Egypt tipped into turmoil after Mursi grabbed powers to stop any court action aimed at hindering the transition. An assembly led by the Brotherhood and other Islamists then swiftly approved the constitution it had spent six months drafting.

Opponents, including minority Christians, had already quit the assembly in dismay, saying their voices were being ignored.

After the dialogue hosted by Mursi, a spokesman announced that the president had issued a new decree whose first article "cancels the constitutional declaration" of November 22. He said the referendum could not be delayed for legal reasons.

The decree ignited more than two weeks of sometimes violent protests and counter-rallies in Egypt. Mursi's foes have chanted for his downfall. Islamists fear a plot to oust the most populous Arab nation's first freely-elected leader.

Islamists reckon they can win the referendum and, once the new constitution is in place, a parliamentary election about two months later. The Islamist-led lower house elected this year was dissolved after a few months by a court order.

Investors appeared relieved after Mursi rescinded his decree, sending Egyptian stocks 4.4 percent higher on Sunday. Markets are awaiting approval of a $4.8 billion IMF loan later this month designed to support the budget and economic reforms.

The military, which led Egypt's transition for 16 turbulent months after Mubarak fell, told feuding factions on Saturday that only dialogue could avert "catastrophe". But a military source said these remarks did not herald an army takeover.

(Additional reporting by Edmund Blair and Yasmine Saleh; editing by David Stamp)

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Asian markets up after positive US, China data

HONG KONG: Asian markets rose Monday as dealers cheered an improvement in the US unemployment rate and another batch of figures indicating China's economy is emerging from a long slowdown.

Investors appeared unmoved by figures confirming Japan's economy shrank in the three months to September, as traders keep their sights on Sunday's general election, which is expected to see Yoshihiko Noda's government ousted.

Tokyo rose 0.25 per cent by the break, Hong Kong added 0.58 per cent, Shanghai was 0.26 per cent higher, Sydney gained 0.26 per cent and Seoul climbed 0.13 per cent.

Washington on Friday unveiled figures showing the economy added 146,000 jobs in November, up from a revised 138,000 in October. Expectations had been for just 80,000 jobs to be added.

The Labor Department also said the unemployment rate dropped to 7.7 per cent last month, its lowest since December 2008, from 7.9 per cent in October.

However, the data were tempered by a University of Michigan consumer sentiment index, which declined to 74.5 from November's five-year-high of 82.7.

Traders are also nervous about the lack of progress on Capitol Hill in talks aimed at averting the fiscal cliff of tax hikes and spending cuts due to take effect on January 1 and which would likely tip the economy into recession.

Wall Street was mixed, with the Dow up 0.62 per cent and the S&P 500 gaining 0.29 per cent but the Nasdaq lost 0.38 per cent.

In China the government said Sunday that November had seen a double-digit increase in production at factories, workshops and mines for the first time since March.

Figures on retail sales, fixed asset investment and inflation reinforced the view that the economy is finally on the mend after seven straight quarters of slowdown in growth.

"Overall it's a quite strong set of numbers, supporting our view of rebounding GDP growth," said Lu Ting, China economist with Bank of America Merrill Lynch.

Figures released on Monday showed exports rose 2.9 per cent in November, while imports were flat.

On currency markets the euro bought $1.2904 and 106.40 yen in early Asian trade, down from $1.2928 and 106.64 yen in New York Friday afternoon. The dollar bought 82.47 yen, from 82.46 yen.

The yen has come under pressure in recent weeks after polls were called for December 16. Noda and his Democratic Party of Japan are expected to be beaten by the Liberal Democratic Party, headed by former prime minister Shinzo Abe.

Abe has promised to push a more aggressive monetary easing policy to kickstart the economy.

Oil prices were higher, with New York's main contract, light sweet crude for delivery in January, gaining 29 cents to $86.22 a barrel and Brent North Sea crude for January delivery adding 39 cents to $107.41.

Gold was at $1,705.60 at 0250 GMT compared with $1,696.90 late on Friday.

- AFP/ck

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India misguided, paranoid over China: Guha

Shreya Roy Chowdhury, TNN Dec 8, 2012, 06.12AM IST

MUMBAI: A good half-hour into the discussion on 'India, China and the World', historian Ramachandra Guha issued a disclaimer—all the three members on the panel had been to China only once. "We should learn their language, promote quality research, and have a panel on China driven by Chinese scholars," he said. And that was the general tenor of the debate—that the Indian attitude to China was influenced by a mix of ignorance, cautious optimism about partnerships and a whole lot of misguided paranoia. "Don't demonise the Chinese, please," Guha finally said in response to a question.

"China has existed in our imaginations," observed Sunil Khilnani, professor of politics and author of The Idea Of India. "There's been very little sustained engagement with the reality of China and very little of our own produced knowledge about China." It was after the events of 1962 ('war' in the popular imagination, 'skirmish' to the scholars participating in the discussion), explained Khilnani, that a miffed India "withdrew". It's the 50th anniversary of that exchange this year, and "what we haven't been able to do is learn from the defeat", observed Khilnani. Both could have benefited from greater engagement. "China has had a very clear focus on primary education and achieved high levels of literacy before its economic rise. It has also addressed the issue of land reform," said Khilnani. Guha added that China could learn from the "religious, cultural and linguistic pluralism" in India.

But China and India weren't always so out of sync with each other. Srinath Raghavan, a scholar of military history, got both Guha and Khilnani to talk about pre-1962 relations between the two when the picture was rosier. Tagore was interested in China and so was Gandhi. Both were very large countries with large populations and shared what Guha calls a "lack of cultural inferiority". "They were both," he continued, "also heavily dependent on peasant communities." Nehru was appreciative of China's will to modernize and industrialize and its adoption of technology to achieve those ends. In turn, Chinese politicians argued for Indian independence.

Things soured more, feel both Khilnani and Guha, after the Dalai Lama fled to India in 1959. "He was welcomed here as a spiritual leader but the intensification of the conflict dates to the Dalai Lama's flight," said Guha. Both Guha and Khilnani argued that Nehru's decision to not react aggressively to China's occupation of Tibet was, in the long run, the right one and prevented further "militarization" of the region. An audience member wondered if that didn't make India "China's puppet". Guha disagreed. "If there's a Tibetan culture alive today," he said, "it's not because of Richard Gere. Don't believe in the hypocrisy of the Western countries. Will they give them land, employment, dignified refuge? The Tibetans is one of the few cases in which our record is honorable."

But the difference in levels of development and the lopsided trade relations between the two countries have only fuelled the suspicions many Indians seem to harbour about China. People were worried, said Guha, even about cricket balls made in China. Audience questions reflected those worries. A member asked about China's "strategy to conquer the world" and its likely impact on India. Guha cautioned against stereotypes; Khilnani explained, "History is littered with the debris of states that have tried to dominate the world. What we're doing may be more long-lasting."

Read More..

Smokers celebrate as Wash. legalizes marijuana

SEATTLE (AP) — The crowds of happy people lighting joints under Seattle's Space Needle early Thursday morning with nary a police officer in sight bespoke the new reality: Marijuana is legal under Washington state law.

Hundreds gathered at Seattle Center for a New Year's Eve-style countdown to 12 a.m., when the legalization measure passed by voters last month took effect. When the clock struck, they cheered and sparked up in unison.

A few dozen people gathered on a sidewalk outside the north Seattle headquarters of the annual Hempfest celebration and did the same, offering joints to reporters and blowing smoke into television news cameras.

"I feel like a kid in a candy store!" shouted Hempfest volunteer Darby Hageman. "It's all becoming real now!"

Washington and Colorado became the first states to vote to decriminalize and regulate the possession of an ounce or less of marijuana by adults over 21. Both measures call for setting up state licensing schemes for pot growers, processors and retail stores. Colorado's law is set to take effect by Jan. 5.

Technically, Washington's new marijuana law still forbids smoking pot in public, which remains punishable by a fine, like drinking in public. But pot fans wanted a party, and Seattle police weren't about to write them any tickets.

In another sweeping change for Washington, Gov. Chris Gregoire on Wednesday signed into law a measure that legalizes same-sex marriage. The state joins several others that allow gay and lesbian couples to wed.

The mood was festive in Seattle as dozens of gay and lesbian couples got in line to pick up marriage licenses at the King County auditor's office early Thursday.

King County and Thurston County announced they would open their auditors' offices shortly after midnight Wednesday to accommodate those who wanted to be among the first to get their licenses.

Kelly Middleton and her partner Amanda Dollente got in line at 4 p.m. Wednesday.

Hours later, as the line grew, volunteers distributed roses and a group of men and women serenaded the waiting line to the tune of "Chapel of Love."

Because the state has a three-day waiting period, the earliest that weddings can take place is Sunday.

In dealing with marijuana, the Seattle Police Department told its 1,300 officers on Wednesday, just before legalization took hold, that until further notice they shall not issue citations for public marijuana use.

Officers will be advising people not to smoke in public, police spokesman Jonah Spangenthal-Lee wrote on the SPD Blotter. "The police department believes that, under state law, you may responsibly get baked, order some pizzas and enjoy a 'Lord of the Rings' marathon in the privacy of your own home, if you want to."

He offered a catchy new directive referring to the film "The Big Lebowski," popular with many marijuana fans: "The Dude abides, and says 'take it inside!'"

"This is a big day because all our lives we've been living under the iron curtain of prohibition," said Hempfest director Vivian McPeak. "The whole world sees that prohibition just took a body blow."

Washington's new law decriminalizes possession of up to an ounce for those over 21, but for now selling marijuana remains illegal. I-502 gives the state a year to come up with a system of state-licensed growers, processors and retail stores, with the marijuana taxed 25 percent at each stage. Analysts have estimated that a legal pot market could bring Washington hundreds of millions of dollars a year in new tax revenue for schools, health care and basic government functions.

But marijuana remains illegal under federal law. That means federal agents can still arrest people for it, and it's banned from federal properties, including military bases and national parks.

The Justice Department has not said whether it will sue to try to block the regulatory schemes in Washington and Colorado from taking effect.

"The department's responsibility to enforce the Controlled Substances Act remains unchanged," said a statement issued Wednesday by the Seattle U.S. attorney's office. "Neither states nor the executive branch can nullify a statute passed by Congress."

The legal question is whether the establishment of a regulated marijuana market would "frustrate the purpose" of the federal pot prohibition, and many constitutional law scholars say it very likely would.

That leaves the political question of whether the administration wants to try to block the regulatory system, even though it would remain legal to possess up to an ounce of marijuana.

Alison Holcomb is the drug policy director of the American Civil Liberties Union of Washington and served as the campaign manager for New Approach Washington, which led the legalization drive. She said the voters clearly showed they're done with marijuana prohibition.

"New Approach Washington sponsors and the ACLU look forward to working with state and federal officials and to ensure the law is fully and fairly implemented," she said.

___

Johnson can be reached at https://twitter.com/GeneAPseattle

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Egypt president scraps decree that sparked protests

CAIRO (Reuters) - Egyptian President Mohamed Mursi has cancelled a decree that gave him sweeping powers and sparked deadly violence, but did not delay this month's referendum on a new constitution as his opponents had demanded.

The announcement that Mursi had scrapped his November 22 decree followed hours of talks on Saturday at his presidential palace, billed as a "national dialogue" but which was boycotted by his main opponents and had little credibility among protesters.

One opposition group dismissed Mursi's efforts at appeasement as the "continuation of deception."

His opponents have demanded Mursi scrap the vote on December 15 on a constitution that was fast-tracked through an assembly led by Mursi's Muslim Brotherhood and other Islamists. Liberals and others had walked out, saying their voices were not being heard.

Islamists have insisted the referendum should go ahead on time, saying it is needed to complete a democratic transition still incomplete after Hosni Mubarak's overthrow 22 months ago.

The military, which had run the nation during a turbulent interim period after Mubarak fell, stepped into the crisis on Saturday to tell feuding factions that dialogue was essential to avoid "catastrophe." But a military source said that was not a prelude to the army retaking control of Egypt or the streets.

After Saturday's talks, the president issued a new decree in which the first article "cancels the constitutional declaration" announced on November 22, the spokesman for the dialogue, Mohamed Selim al-Awa, told a news conference held around midnight.

But he said the constitutional referendum would go ahead next Saturday, adding that although those at the meeting had discussed a postponement, there were legal obstacles to taking such a step.

The political turmoil has exposed deep rifts in the nation of 83 million between Islamists, who were suppressed for decades, and their rivals, who fear religious conservatives want to squeeze out other voices and restrict social freedoms. Many Egyptian just crave stability and economic recovery.

RESPONSE

Islamists and more liberal-minded opponents have both drawn tens of thousands of supporters to the streets in rival rallies since Mursi's decree last month. Seven people were killed in violence around the presidential palace, which has been ringed by tanks.

The spokesman for the main opposition coalition, the National Salvation Front, which stayed away from Saturday's talks, said his group would meet on Sunday to discuss a response to Mursi's initiative to cancel his old decree.

But Hussein Abdel Ghani added: "My first personal impression is that it is a limited and insufficient step. We repeatedly said that among our top demands is for the referendum to be delayed."

The April 6 movement, which helped galvanize street protests against Mubarak, said in a statement about the outcome of Saturday's talks, "What happened is manipulation and a continuation of deception in the name of law and legitimacy."

The new decree excluded some elements from the old decree that angered the opposition, including an article that gave Mursi broad powers to confront threats to the revolution or the nation, wording opponents said gave him arbitrary authority.

Another article in the old decree had put beyond legal challenge any decision taken by the president since he took office on June 30 and until a new parliament was elected, a step that can only happen when a new constitution is in place.

That was not repeated, but the new decree said that "constitutional declarations including this declaration" were beyond judicial review.

DIALOGUE

The new decree outlined steps for setting up an assembly to draft a new constitution should the current draft be rejected in Saturday's referendum.

In addition, the opposition was invited to offer suggested changes to the new constitution, echoing an earlier initiative by Mursi's administration for changes to be discussed and agreed on by political factions and put to the new parliament to approve.

Amid the violence and political bickering, the army has cast itself primarily as the neutral guarantor of the nation.

"The armed forces affirm that dialogue is the best and only way to reach consensus," the military statement said. "The opposite of that will bring us to a dark tunnel that will result in catastrophe and that is something we will not allow."

The army might be pushing the opposition to join the dialogue and for Mursi to do more to draw them in, said Hassan Abu Taleb of the Al Ahram Center for Political and Strategic Studies.

He discounted the chance of direct military intervention, adding, "They realize that interfering again in a situation of civil combat will squeeze them between two rocks."

But the military seemed poised to take a more active role in security arrangements for the upcoming referendum.

A Cabinet source said the Cabinet had discussed reviving the army's ability to make arrests if it were called upon to back up police, who are normally in charge of election security.

According to the state-run daily al-Ahram, an expanded military security role might extend to the next parliamentary election and, at the president's discretion, even beyond that.

(Additional reporting by Tamim Elyan; Editing by Peter Cooney)

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Boehner in hot seat in game of fiscal chicken

WASHINGTON: With room for maneuver slipping away, top US Republican John Boehner is in a bind over how to avoid going over the fiscal cliff: embrace higher taxes and earn conservatives' ire, or scupper a deal and incur Americans' wrath.

Another option, one that few non-partisans see as very viable, is for President Barack Obama to cave in and agree to Republican demands not to raise taxes, even for the wealthiest Americans.

A likelier resolution is a compromise with the White House that avoids the early January shock of automatic spending cuts coupled with tax hikes on nearly all Americans, while laying out enough deficit reduction that eases concern about the country's financial well-being.

In the game of political chicken to see whether Democrats or Republicans blink first, perhaps the trickiest role of all rests with Speaker of the House Boehner, who along with Obama is the principal in the negotiations.

Boehner's guidance of the Republican position in coming days and weeks could signal much about party direction in the wake of an election that saw flagbearer Mitt Romney -- who advocated slashing tax rates across the board -- defeated by Obama.

"To say Boehner is between a rock and a hard place is minimizing the problem he faces," Boston University professor and longtime political consultant Tobe Berkovitz told AFP.

"Boehner is trying to keep public opinion about Republicans from totally cratering, and at the same time keep the Tea Party hardcore conservatives from totally abandoning the party."

Conservative Republican Trent Franks agrees that "our speaker is in an enormously difficult position."

"And I think he's doing the best he can," the congressman told National Public Radio. "That doesn't mean that what he finally arrives at will be something that I can support or it won't. You know, I don't know."

Few people other than Boehner and Obama know the true state of negotiations in what appears as a well-choreographed campaign to thrash out a last-minute deal.

Discussions appear to have stalled, though, and Boehner has accused Obama of having "wasted another week" by not pushing talks forward.

This weekend Boehner "will be waiting for the White House to respond to our serious offer about averting the fiscal cliff," his spokesman Michael Steel told AFP.

Obama has proposed US$1.6 trillion in new taxes over the next decade from higher rates on the wealthiest two percent of Americans.

Republicans countered with a plan for US$800 billion in tax revenue raised by closing loopholes and ending some deductions. Both plans were rejected.

A Democratic official said Saturday that "nothing has changed since yesterday."

Polls show most Americans want to see taxes rise on the wealthy.

With Obama winning re-election on November 6, and his Democrats gaining seats in both the House and Senate, Republicans concede privately -- and some publicly -- that the Democrats have the upper hand.

"President Obama pretty well holds all the cards in this negotiation," Republican Senator Ron Johnson told Fox News.

"If he wants to have tax increases or tax rates go up, I don't see how Republicans can stop him."

Public trust is not in Boehner's favour. A Washington Post/Pew poll this week showed 53 percent of Americans would blame Republicans should the economy dive off the cliff; 27 percent would blame Democrats.

In his weekly address Saturday, Obama said he was willing to find ways to reduce health costs and make more entitlement spending cuts, but as for asking "the wealthiest Americans to pay higher tax rates -- that's one principle I won't compromise on."

Potential future Republican leaders like Senator Marco Rubio are unlikely to want to bend to White House's will.

Rubio, a possible 2016 presidential candidate, gave the Republican response to Obama's address -- and said "tax increases will not solve our US$16 trillion debt."

Boehner has said that, too, but his position is tenuous. On Friday he left open the possibility for compromise on a tax rate rise.

In past negotiations, such as last December's battle over extending the payroll tax holiday, some Republicans felt Boehner gave away too much.

Hashtags on Twitter -- #boehnermustgo, #fireboehner -- have recently left little doubt that some Republicans are fed up with his handling of the talks.

With conservatives demanding unity on taxes, Boehner faces the prospect of revolt from his right flank should he agree to a deal that would raise high-end rates.

Berkovitz said Republicans face two options if they want to avoid the cliff: negotiate and compromise, or hold their noses and "give Obama what he wants. If it goes south, take the election victory in two years and maybe four years."

- AFP/ir

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India misguided, paranoid over China: Guha

MUMBAI: A good half-hour into the discussion on 'India, China and the World', historian Ramachandra Guha issued a disclaimer—all the three members on the panel had been to China only once. "We should learn their language, promote quality research, and have a panel on China driven by Chinese scholars," he said. And that was the general tenor of the debate—that the Indian attitude to China was influenced by a mix of ignorance, cautious optimism about partnerships and a whole lot of misguided paranoia. "Don't demonise the Chinese, please," Guha finally said in response to a question.

"China has existed in our imaginations," observed Sunil Khilnani, professor of politics and author of The Idea Of India. "There's been very little sustained engagement with the reality of China and very little of our own produced knowledge about China." It was after the events of 1962 ('war' in the popular imagination, 'skirmish' to the scholars participating in the discussion), explained Khilnani, that a miffed India "withdrew". It's the 50th anniversary of that exchange this year, and "what we haven't been able to do is learn from the defeat", observed Khilnani. Both could have benefited from greater engagement. "China has had a very clear focus on primary education and achieved high levels of literacy before its economic rise. It has also addressed the issue of land reform," said Khilnani. Guha added that China could learn from the "religious, cultural and linguistic pluralism" in India.

But China and India weren't always so out of sync with each other. Srinath Raghavan, a scholar of military history, got both Guha and Khilnani to talk about pre-1962 relations between the two when the picture was rosier. Tagore was interested in China and so was Gandhi. Both were very large countries with large populations and shared what Guha calls a "lack of cultural inferiority". "They were both," he continued, "also heavily dependent on peasant communities." Nehru was appreciative of China's will to modernize and industrialize and its adoption of technology to achieve those ends. In turn, Chinese politicians argued for Indian independence.

Things soured more, feel both Khilnani and Guha, after the Dalai Lama fled to India in 1959. "He was welcomed here as a spiritual leader but the intensification of the conflict dates to the Dalai Lama's flight," said Guha. Both Guha and Khilnani argued that Nehru's decision to not react aggressively to China's occupation of Tibet was, in the long run, the right one and prevented further "militarization" of the region. An audience member wondered if that didn't make India "China's puppet". Guha disagreed. "If there's a Tibetan culture alive today," he said, "it's not because of Richard Gere. Don't believe in the hypocrisy of the Western countries. Will they give them land, employment, dignified refuge? The Tibetans is one of the few cases in which our record is honorable."

But the difference in levels of development and the lopsided trade relations between the two countries have only fuelled the suspicions many Indians seem to harbour about China. People were worried, said Guha, even about cricket balls made in China. Audience questions reflected those worries. A member asked about China's "strategy to conquer the world" and its likely impact on India. Guha cautioned against stereotypes; Khilnani explained, "History is littered with the debris of states that have tried to dominate the world. What we're doing may be more long-lasting."

Read More..

Smokers celebrate as Wash. legalizes marijuana

SEATTLE (AP) — The crowds of happy people lighting joints under Seattle's Space Needle early Thursday morning with nary a police officer in sight bespoke the new reality: Marijuana is legal under Washington state law.

Hundreds gathered at Seattle Center for a New Year's Eve-style countdown to 12 a.m., when the legalization measure passed by voters last month took effect. When the clock struck, they cheered and sparked up in unison.

A few dozen people gathered on a sidewalk outside the north Seattle headquarters of the annual Hempfest celebration and did the same, offering joints to reporters and blowing smoke into television news cameras.

"I feel like a kid in a candy store!" shouted Hempfest volunteer Darby Hageman. "It's all becoming real now!"

Washington and Colorado became the first states to vote to decriminalize and regulate the possession of an ounce or less of marijuana by adults over 21. Both measures call for setting up state licensing schemes for pot growers, processors and retail stores. Colorado's law is set to take effect by Jan. 5.

Technically, Washington's new marijuana law still forbids smoking pot in public, which remains punishable by a fine, like drinking in public. But pot fans wanted a party, and Seattle police weren't about to write them any tickets.

In another sweeping change for Washington, Gov. Chris Gregoire on Wednesday signed into law a measure that legalizes same-sex marriage. The state joins several others that allow gay and lesbian couples to wed.

The mood was festive in Seattle as dozens of gay and lesbian couples got in line to pick up marriage licenses at the King County auditor's office early Thursday.

King County and Thurston County announced they would open their auditors' offices shortly after midnight Wednesday to accommodate those who wanted to be among the first to get their licenses.

Kelly Middleton and her partner Amanda Dollente got in line at 4 p.m. Wednesday.

Hours later, as the line grew, volunteers distributed roses and a group of men and women serenaded the waiting line to the tune of "Chapel of Love."

Because the state has a three-day waiting period, the earliest that weddings can take place is Sunday.

In dealing with marijuana, the Seattle Police Department told its 1,300 officers on Wednesday, just before legalization took hold, that until further notice they shall not issue citations for public marijuana use.

Officers will be advising people not to smoke in public, police spokesman Jonah Spangenthal-Lee wrote on the SPD Blotter. "The police department believes that, under state law, you may responsibly get baked, order some pizzas and enjoy a 'Lord of the Rings' marathon in the privacy of your own home, if you want to."

He offered a catchy new directive referring to the film "The Big Lebowski," popular with many marijuana fans: "The Dude abides, and says 'take it inside!'"

"This is a big day because all our lives we've been living under the iron curtain of prohibition," said Hempfest director Vivian McPeak. "The whole world sees that prohibition just took a body blow."

Washington's new law decriminalizes possession of up to an ounce for those over 21, but for now selling marijuana remains illegal. I-502 gives the state a year to come up with a system of state-licensed growers, processors and retail stores, with the marijuana taxed 25 percent at each stage. Analysts have estimated that a legal pot market could bring Washington hundreds of millions of dollars a year in new tax revenue for schools, health care and basic government functions.

But marijuana remains illegal under federal law. That means federal agents can still arrest people for it, and it's banned from federal properties, including military bases and national parks.

The Justice Department has not said whether it will sue to try to block the regulatory schemes in Washington and Colorado from taking effect.

"The department's responsibility to enforce the Controlled Substances Act remains unchanged," said a statement issued Wednesday by the Seattle U.S. attorney's office. "Neither states nor the executive branch can nullify a statute passed by Congress."

The legal question is whether the establishment of a regulated marijuana market would "frustrate the purpose" of the federal pot prohibition, and many constitutional law scholars say it very likely would.

That leaves the political question of whether the administration wants to try to block the regulatory system, even though it would remain legal to possess up to an ounce of marijuana.

Alison Holcomb is the drug policy director of the American Civil Liberties Union of Washington and served as the campaign manager for New Approach Washington, which led the legalization drive. She said the voters clearly showed they're done with marijuana prohibition.

"New Approach Washington sponsors and the ACLU look forward to working with state and federal officials and to ensure the law is fully and fairly implemented," she said.

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Johnson can be reached at https://twitter.com/GeneAPseattle

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Federal Agencies Brace for Deep Cuts Post-'Cliff'

Dec 7, 2012 4:22pm

Toby Jorrin/AFP/Getty Images

With the “fiscal cliff” quickly approaching, federal agencies are stepping up preparations for deep automatic budget cuts that will kick in Jan. 2 unless the White House and Congress can reach a deal.

The Office of Management and Budget told ABC News that a memo went out to federal agencies earlier this week seeking “additional information and analysis” in order to finalize spending cuts required if we go off the cliff.

The agencies are considering which workers to furlough, projects to put on hold and offices that will have to close.

The request follows the administration’s release of a 400-page report in September that outlined the budget areas to be impacted by the $1.2 trillion in automatic spending cuts and what percentages they would be slashed.

READ MORE: White House Details ‘Doomsday’ Budget Cuts

Billions of dollars could be slashed from defense operations and maintenance programs. Medicare would take a two-percent hit, trimming millions in payouts to health care providers. Scientific research programs would be gutted. Aid for the poor and needy would be sharply curtailed.

The report also detailed operations that would be exempt from any cuts, including active-duty military operations, nuclear watchdogs, homeland security officials, veterans care and other critical areas.

READ: Pentagon Begins Planning for ‘Cliff’ Cuts

Asked about the agency preparations underway, White House spokesman Jay Carney said Wednesday that OMB “must take certain steps to ensure the administration is ready to issue such an order should Congress fail to act.”

“Earlier this week, OMB issued a request to federal agencies for additional information to finalize calculations on the spending reductions that would be required,” Carney said.

“This action should not be read … as a change in the administration’s commitment to reach an agreement and avoid sequestration.  OMB is simply ensuring that the administration is prepared, should it become necessary to issue such an order,” he said. “OMB will continue to consult with agencies and will provide additional guidance as needed.  This is just acting responsibly because of the potential for this happening.”

Get more pure politics at ABCNews.com/Politics and a lighter take on the news at OTUSNews.com.

More ‘Fiscal Cliff’ Coverage From Today:

SHOWS: World News

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