Spate of foreign investment offers in US
Sunday, 20 December 2009
Fazle Rashid
There is a spate of offers of foreign investments in the US. But the government is in a fix about what to do about these proposals. Two questions need to be resolved. America requires foreign investments to revamp the economy but at the same time it cannot ignore the question of the national security.
In recent days the administration has threatened to block the proposed takeover by the Chinese government of a tiny gold mining company. Administration officials have also raised question about a bid by the United Arab Emirates (UAE) controlled company to buy a large stake of Virgin Galatic which is trying to build the world's first commercial carrier to take tourists into space, the New York Times reported Friday.
Foreign investments proposals in certain security sensitive areas involving military and homeland are scrutinised by a Federal panel and even sent to the White House for presidential vetting. After going through a period of lull during the period of the economic meltdown the applications for foreign investments have picked up momentum. More than 60 such applications have been submitted in the last quarter of this year compared to 155 in 2008. The promoters of foreign investments say the government is sending wrong signal.
The US officials are opposed to foreign investment in rocket and missile launching and fabrication technology. The administration also makes sure that no deal tend to flout and violate an international agreement called Missile Technology Control Regime that is intended to prevent global spread of missile-based weapons delivery systems.
Meanwhile the Senate Banking Committee Friday voted to confirm the nomination of Ben Bernanke for a second four-year term as Chairman of the Federal Reserve, NYT reported. President Obama greeted the confirmation saying " it would provide crucial continuity as the country works through its gravest economic challenges in decades". The prestigious US magazine the Time has selected Bernanke as the man of the year.
Bernanke, a Bush nominee was surprisingly chastised by the Republicans for not doing more to prevent the meltdown. And from Copenhagen President Obama does not want to return home empty handed one more time. It was only 11 weeks ago that he left this city empty handed after pleading for Chicago as the venue for the 2016 summer Olympics. He will apply a combination of muscle and personal charm to secure a climate change agreement. The top negotiators however suspect that the summit is racing toward a humiliating failure.
Poor and affected nations demanding sweeping changes in the attitude of the rich nations surrounding the global warming were strongly rebuked for creating a chaos at the summit venue. The glimmer of hope that started to enliven proceedings at the summit has started to fade out again. World leaders have made it clear that Copenhagen is unlikely to produce a binding treaty. The UN Secretary General Ban Ki-mooon had earlier made it crystal clear that the rich nations are not going to make a firm promise for the release of the fund to help poor nations to " adopt " and " adept" the changes.
The G77 nations said the offer of $10 billion for a jump start was inadequate.
Many members of the G77 do not have organisational structure to negotiate effectively on their own. China with vast investments in Africa and South America has become god father to many. The rich are destroying the planet, said Hugo Chavez, president of Venezuela. The poor nations accused the rich nations of economic and environmental tyranny.
A positive development is an unconditional US pledge of $1.0 billion to help poor countries protect their forests. Australia, France, Japan, Norway and the UK have promised to contribute $3.5 billion on condition " if an overall climate change deal is reached" But what could vastly change the scenario in South Asia is the deepening chasm between the US and Pakistan. The bilateral ties between the two has reached a fathomless bottom. US demand that Pakistan should do more to exterminate and liquidate al-Qaeda and Taleban outfits or allow Washington to mount a fierce offensive against the Islamic Jihadists.
Pakistan has responded angrily. Islamabad has refused to extend or approve visas for more than 100 American officials and subjected the American diplomatic vehicles into frequent searches.. The problems affected military attaches, CIA officers, development experts and junior level diplomats and others. This has led to suspension of US aid programme to Pakistan. Reimbursement to Pakistan of nearly $1 billion a year has been put under limbo Pakistan hit back saying the situation has developed because of the American arrogance and provocations.
There is a growing discontent among the Pakistanis against the Americans. Washington has kept in abeyance the programme of expansion of its embassy in Pakistan to 800 from the current strength of 500.
The souring of bilateral ties was given a break as the Chairman of the US Joint Chief of Staff admiral Mike Mullen was given a helicopter tour of South Waziristan. by Gen. Ashfaq Pervez Kayani, chief of army staff to show what Pakistan has done to the jihadists.
There is a spate of offers of foreign investments in the US. But the government is in a fix about what to do about these proposals. Two questions need to be resolved. America requires foreign investments to revamp the economy but at the same time it cannot ignore the question of the national security.
In recent days the administration has threatened to block the proposed takeover by the Chinese government of a tiny gold mining company. Administration officials have also raised question about a bid by the United Arab Emirates (UAE) controlled company to buy a large stake of Virgin Galatic which is trying to build the world's first commercial carrier to take tourists into space, the New York Times reported Friday.
Foreign investments proposals in certain security sensitive areas involving military and homeland are scrutinised by a Federal panel and even sent to the White House for presidential vetting. After going through a period of lull during the period of the economic meltdown the applications for foreign investments have picked up momentum. More than 60 such applications have been submitted in the last quarter of this year compared to 155 in 2008. The promoters of foreign investments say the government is sending wrong signal.
The US officials are opposed to foreign investment in rocket and missile launching and fabrication technology. The administration also makes sure that no deal tend to flout and violate an international agreement called Missile Technology Control Regime that is intended to prevent global spread of missile-based weapons delivery systems.
Meanwhile the Senate Banking Committee Friday voted to confirm the nomination of Ben Bernanke for a second four-year term as Chairman of the Federal Reserve, NYT reported. President Obama greeted the confirmation saying " it would provide crucial continuity as the country works through its gravest economic challenges in decades". The prestigious US magazine the Time has selected Bernanke as the man of the year.
Bernanke, a Bush nominee was surprisingly chastised by the Republicans for not doing more to prevent the meltdown. And from Copenhagen President Obama does not want to return home empty handed one more time. It was only 11 weeks ago that he left this city empty handed after pleading for Chicago as the venue for the 2016 summer Olympics. He will apply a combination of muscle and personal charm to secure a climate change agreement. The top negotiators however suspect that the summit is racing toward a humiliating failure.
Poor and affected nations demanding sweeping changes in the attitude of the rich nations surrounding the global warming were strongly rebuked for creating a chaos at the summit venue. The glimmer of hope that started to enliven proceedings at the summit has started to fade out again. World leaders have made it clear that Copenhagen is unlikely to produce a binding treaty. The UN Secretary General Ban Ki-mooon had earlier made it crystal clear that the rich nations are not going to make a firm promise for the release of the fund to help poor nations to " adopt " and " adept" the changes.
The G77 nations said the offer of $10 billion for a jump start was inadequate.
Many members of the G77 do not have organisational structure to negotiate effectively on their own. China with vast investments in Africa and South America has become god father to many. The rich are destroying the planet, said Hugo Chavez, president of Venezuela. The poor nations accused the rich nations of economic and environmental tyranny.
A positive development is an unconditional US pledge of $1.0 billion to help poor countries protect their forests. Australia, France, Japan, Norway and the UK have promised to contribute $3.5 billion on condition " if an overall climate change deal is reached" But what could vastly change the scenario in South Asia is the deepening chasm between the US and Pakistan. The bilateral ties between the two has reached a fathomless bottom. US demand that Pakistan should do more to exterminate and liquidate al-Qaeda and Taleban outfits or allow Washington to mount a fierce offensive against the Islamic Jihadists.
Pakistan has responded angrily. Islamabad has refused to extend or approve visas for more than 100 American officials and subjected the American diplomatic vehicles into frequent searches.. The problems affected military attaches, CIA officers, development experts and junior level diplomats and others. This has led to suspension of US aid programme to Pakistan. Reimbursement to Pakistan of nearly $1 billion a year has been put under limbo Pakistan hit back saying the situation has developed because of the American arrogance and provocations.
There is a growing discontent among the Pakistanis against the Americans. Washington has kept in abeyance the programme of expansion of its embassy in Pakistan to 800 from the current strength of 500.
The souring of bilateral ties was given a break as the Chairman of the US Joint Chief of Staff admiral Mike Mullen was given a helicopter tour of South Waziristan. by Gen. Ashfaq Pervez Kayani, chief of army staff to show what Pakistan has done to the jihadists.