‘No record’ of BP Lockerbie link

Robert MenendezThe hearing will be chaired by Democratic senator Robert Menendez

A hearing on the release of Lockerbie bomber Abdelbaset Ali al-Megrahi is set to get under way in the US.

Democratic senator, Robert Menendez, will chair the session of the Senate Foreign Relations Committee.

It will examine the circumstances of the release by Scots Justice Secretary Kenny MacAskill – in particular claims of links to an oil deal involving BP.

Representatives of the company and both the UK and Scottish governments have declined to attend the hearing.

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Megrahi was freed from Greenock Prison last year on compassionate grounds after being diagnosed with prostate cancer.

It was estimated that he only had months to live but he is still alive in Libya more than a year on.

A total of 270 people, mainly US nationals, died in the 1988 atrocity and to date Megrahi is the only person to have been convicted.

His release sparked an angry reaction in America.

The Senate Foreign Relations Committee aims to examine claims that BP played a part in securing Megrahi’s release in a bid to safeguard an exploration deal with Libya.

The oil giant and both the British and Scottish governments have denied this and will not be represented at the hearing in Washington.

The committee will question doctors and officials from the US state department.

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Sacked Moscow mayor ‘may appeal’

Yuri Luzhkov at a conference in Moscow as mayor, 27 September 2010 Mr Luzhkov was sacked before the end of his 5th term in office

The sacked long-time mayor of Moscow, Yuri Luzhkov, may appeal against his sudden dismissal by President Dmitry Medvedev, a friend has said.

Russian crooner Yosef Kobzon said he had tried to persuade his friend that an appeal would be pointless but Mr Luzhkov would “probably insist”.

The sacked mayor has 10 days to lodge an appeal at the supreme court.

Meanwhile it has emerged that he wrote a scathing letter to Mr Medvedev shortly before his removal.

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In the letter, he calls on the Russian president to halt a campaign in the state-run media to discredit him and suggests there is a mood of fear in the country reminiscent of the Stalinist terror.

The Kremlin says Mr Medvedev only read the letter after sacking Mr Luzhkov but it would not have affected his decision in any case.

President Medvedev sacked the mayor of 18 years by decree on Tuesday, saying he had lost confidence in him.

Mr Luzhkov’s removal followed a series of documentaries on state-run TV channels about him and his billionaire property developer wife Yelena Baturina.

Suggestions of corruption – which the couple deny – were made and Mr Luzhkov was also accused of presiding over the destruction of Moscow’s architectural heritage.

Mr Luzhkov’s deputy, Vladimir Resin, is now serving as the caretaker mayor while the Kremlin has made clear it will decide Mr Luzhkov’s successor.

Vladimir Putin visits the Russian city of Syktyvkar, 28 SeptemberMr Putin suggested Mr Luzhkov could have avoided being sacked

Russia’s powerful former president and current prime minister, Vladimir Putin, who approved Mr Luzhkov’s return to office for a fifth term in 2007, said Mr Luzhkov should have tried to mend his ties with Mr Medvedev.

“It’s quite obvious that there was a strain in the Moscow mayor’s relations with the president, but the mayor is subordinate to the president, not the other way round,” he said in televised remarks.

“[He] should have taken steps to normalise the situation.”

President Medvedev has been out of the country on a visit to China.

Russian news agencies say Mr Luzhkov was seen returning to his office early on Wednesday to clear out his possessions.

“I will need several days to pick up my personal things,” he told Interfax.

“My awards alone take up several cupboards.”

In his letter to Mr Medvedev, published in the opposition magazine New Times on Wednesday, he had questioned the president’s commitment to democracy.

“In our country the fear of expressing your view has existed since 1937,” he said, referring to the Great Terror under Josef Stalin.

“If our leadership merely supports this fear with its statements… then it is easy to go to a situation where there is just one leader in the country whose words are written in granite and who must be followed unquestioningly.

Police detain pro-democracy activist Roman Dobrokhotov trying to celebrate Mr Luzhkov's ouster outside Moscow city hall, 28 SeptemberPolice cracked down on an attempt to celebrate Mr Luzhkov’s ouster

“How does this stand with your calls for ‘development of democracy’?”

Notwithstanding Mr Luzhkov’s letter, some human rights activists welcomed his dismissal.

The former mayor appalled many by his frequent denunciation of gay rights activists – at one point calling them “satanic” – and consistently blocking their attempts to hold rallies.

For this year’s observance of the end of World War II in Europe, Mr Luzhkov had wanted to allow billboards portraying Stalin as a war leader.

Police arrested pro-democracy activist Roman Dobrokhotov and several others on Tuesday evening as they tried to celebrate Mr Luzhkov’s sacking outside the city hall with an unapproved rally.

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Gas balloonists missing in storm

Gas balloon over Bristol earlier in the weekThe balloons took off from a launch site north of Bristol on Saturday

One of the balloons taking part in the Gordon Bennett Cup is missing in thunderstorms over the Adriatic.

The missing hydrogen balloon, piloted by Richard Abruzzo and Carol Rymer Davis, is one of three US entries.

A spokeswoman at race control in Bristol said contact had been lost with the balloon, and there was concern that it might have had to ditch.

Organisers were in touch with the balloon’s ground team and Italian air traffic control, she said.

Don Cameron from race control said the last satellite tracker report from USA2 was at 0658 BST.

“The Italian Maritime Rescue Co-ordination Centre have initiated an operation with a helicopter and fast boat although no ELT [distress beacon] activation has been detected so far,” he said.

“The Croatian authorities and all shipping have been informed.

“Thunderstorm activity has been reported in the area. We are very concerned, but can only wait for news now.”

The balloons took off from a launch site to the north of Bristol on Saturday night.

The winning team is the one to travel the furthest and crew control the balloon by letting gas out to descend or throwing sandbags out to ascend.

At first light on Wednesday just three teams of the 20 that started, including the Americans, were still flying in the Gordon Bennett 2010 international gas balloon race.

A German balloon piloted by Wilhelm Eimers and Ullrich Seel is expected to land shortly in Moldova.

A British balloon piloted by David Hempleman-Adams and Steve Carey is currently looking for a landing site in mountainous terrain in eastern Serbia.

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Clinton arrives in Londonderry

Bill ClintonMr Clinton is to visit Northern Ireland for the first time in six years.

Former US president Bill Clinton is due to visit Londonderry later on Wednesday.

He is expected to make a speech on how to build economic prosperity during a brief stop in the city.

His visit is in advance of a Washington summit on the Northern Ireland economy which will be hosted by his wife Hillary, the US Secretary of State.

The summit is due to take place on 19 October and aims to encourage American business leaders to invest in NI.

The Clintons have been long-time supporters of the Northern Ireland peace process and have made several high-profile visits in both official and personal capacities.

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This will be the former president’s first return trip since 2004.

It is believed he may meet the former SDLP leader and Nobel peace prize winner John Hume during his visit to Derry.

Mr Clinton is due to travel to Dublin for another engagement on Wednesday evening.

Last year, Hillary Clinton addressed local politicians at Stormont Castle in her capacity as secretary of state.

Her visit took place during protracted negotiations on the devolution of policing and justice from Westminster to Stormont.

At the time, she warned MLAs that economic progress was linked to the success of the peace process.

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Carter remains in Ohio hospital

Jimmy CarterMr Carter developed an upset stomach on a flight to Cleveland

Former US President Jimmy Carter remains in hospital for further observation following an overnight stay for an upset stomach he developed on a flight to Cleveland.

The 85-year-old was travelling to promote his new book, White House Diary, which was released last week.

The former president’s publisher cancelled book signing events scheduled for Wednesday in Washington DC.

He served as 39th US president from 1977 to 1981 and turns 86 on Friday.

Mr Carter was taken to MetroHealth Medical Center at about 1130 local time (1530 GMT) on Tuesday after developing an upset stomach onboard a Delta Airlines flight. His doctor advised him to remain in the hospital in the US state of Ohio overnight, the Carter Center said in a statement on Tuesday.

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“Carter is feeling normal this morning,” Christina Karas, a spokeswoman at MetroHealth Medical Center, said on Wednesday.

She added: “His doctors at MetroHealth Medical Center recommended additional observation during the day. He looks forward to resuming his schedule as soon as possible.”

Book signings scheduled for Tuesday were also cancelled in a Cleveland suburb and in the US state of North Carolina when the 2002 Nobel Peace Prize winner fell ill.

Mr Carter has recently called for the US to develop stronger ties with Iran and North Korea.

Last month, Mr Carter secured the release of Aijalon Mahli Gomes, a 31-year-old American citizen detained in North Korea.

He founded the Carter Center a year after leaving the White House to promote elections and mediate conflicts around the globe.

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Head guilty over school roof fall

John SummerfieldJohn Summerfield had told the pupils to avoid the skylight

A head teacher who took “slightly inebriated” students on to a school roof has been found guilty of failing to ensure their safety after one fell.

John Summerfield led sixth formers on to the roof of Sacred Heart Catholic College in Crosby, Merseyside, during an A-level results party.

Student Joel Murray fractured his skull after tumbling through the skylight, Liverpool Crown Court heard.

Summerfield, 65, was convicted of breaching the Health and Safety Act.

The jury was told the group of 10 to 12 students had consumed no more than two glasses of wine and beer during the celebrations in August 2008.

Even though Summerfield had told them not to step on the skylight, Mr Murray, then aged 18, placed his foot on it, tumbled through and landed in the corridor 2.5m (8ft) below.

He perforated an eardrum, broke his ribs, and suffered permanent damage to his eye, as well as fracturing his skull.

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US Congress to vote on China bill

US President Barack Obama greets Chinese Premier Wen JiabaoThe US has found China less cooperative than they would have liked over the value of the yuan

The US House of Representatives is set to vote on a bill that would pave the way to trade sanctions on China.

The bill is expected to pass with support from the majority Democrats, as well as from some Republicans.

It targets countries that hold down the value of their currencies, as many accuse China of doing.

To become law, the bill would also need to be passed by the Senate – unlikely before November mid-term elections – and then signed by President Obama.

The White House has not formally backed the proposed new law, but did provide advice to legislators to ensure the bill does not conflict with World Trade Organization rules.

US DOLLAR V CHINESE RENMINBI Last Updated at 29 Sep 2010, 11:10 ET USD:CNY twelve month chart$1 buys change %6.6884

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The US accuses China of keeping its currency, the yuan, artifically cheap against the dollar in order to give its exports an unfair price advantage.

China has begun recording increasingly larger trade surpluses again since the global recession ended last year.

The US has similarly slipped back into trade deficits, despite weak growth and near-10% unemployment.

“We cannot rely on the Chinese government to voluntarily do the right thing,” said a Republican sponsor of the bill, Tim Murphy. “The expiration date for appeasement has long since passed.”

But the bill is not universally popular in the US and has been opposed by the US Chamber of Commerce, among others, who say it will do more harm than good to job creation and growth.

The draft legislation would require the US Commerce Department to determine the extent to which a currency is undervalued, in any case of unfair trade practices brought to it.

In August, the department decided to drop a more general investigation into the value of the yuan, despite deciding that China had unfairly subsidised its aluminium exporters.

Meanwhile, the Chinese central bank promised to make the exchange rate more flexible, but without specifying what measures it would take.

“[China will] further improve the yuan’s exchange rate regime based on market supply and demand, with reference to a basket of currencies,” the People’s Bank of China said in a quarterly report released on Wednesday.

The reference to a “basket of currencies” may be encouraging for the US, as the dollar has weakened against other major currencies in recent weeks.

Under pressure from the US, China abandoned its fixed exchange rate to the dollar in June.

However, the exchange rate to the dollar is controlled by the People’s Bank of China, which sets a daily rate, and since abandoning the peg, Beijing has only allowed the yuan to appreciate about 2%.

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Nick Brown not standing as whip

Nick BrownMr Brown was the chief whip – the party manager – under Gordon Brown

Labour’s chief whip Nick Brown will not stand for re-election – after new leader Ed Miliband asked him not to.

Mr Brown has written to Mr Miliband to confirm he would not enter the ballot, saying whoever did the job had to have the leader’s confidence.

The chief whip post will be elected by MPs. Nominations close later.

Mr Brown was chief whip when Gordon Brown was prime minister. Mr Miliband has said a “new generation” is in charge of Labour.

Following his election on Saturday, he has made clear his intention to move on from the New Labour of his predecessors Tony Blair and Gordon Brown.

It is understood Mr Miliband met Nick Brown earlier on Wednesday. In a letter, Mr Brown wrote: “As you know I intended to stand for election as chief whip.

“During our meeting earlier today you indicated that you wished me not to do so. The chief whip must have the full confidence of the party leader. I fully respect your wishes and will no longer be standing for the position.”

Mr Miliband thanked him for his work as chief whip but wrote: “As we discussed, the election of a new leader is a time for a fresh start and that’s why I am grateful to you for agreeing to step aside as chief whip.”

The BBC understands that Jim Fitzpatrick, who had expressed an interest in the job, is to withdraw his name and that Ed Miliband has asked Rosie Winterton to stand for the post.

Mr Brown was long seen as one of Gordon Brown’s most loyal lieutenants and Mr Miliband’s actions – effectively sacking Mr Brown – will be seen as another attempt to break from the past, said BBC political correspondent Laura Kuenssberg.

He was chief whip at the start of Labour’s time in office, before becoming secretary of state for agriculture and a minister in the department for work and pensions. He returned to the position after Gordon Brown became prime minister.

The Parliamentary Labour Party has approved changes allowing the chief whip to be elected separately to the rest of the shadow cabinet and to serve a full Parliament.

Nominations for the post close, alongside those for 19 other shadow cabinet posts, at 1700 BST on Wednesday.

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EU gives France warning on Roma

Police evacuate a Roma family from an illegal camp in Villeneuve d'Ascq, northern France, 24 Aug 10France’s demolitions of Roma camps have been widely criticised in the EU

The European Commission is to launch legal proceedings against France over its expulsion of Romanian and Bulgarian Roma (Gypsy) migrants.

Justice Commissioner Viviane Reding said France had failed to respect European rules on freedom of movement.

The controversial expulsions of thousands of Roma led to a serious row between Brussels and Paris.

Recently Ms Reding compared France’s action to events during World War II.

The accusation drew a sharp rebuke from French President Nicolas Sarkozy.

“France is not enforcing European law as it should on free movement, so we are launching an infringement process against France,” Ms Reding told France 24 television.

Ms Reding says France has failed to transpose into law a 2004 EU directive on freedom of movement, which sets out procedures for deporting illegal migrants.

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Danger warning over military cuts

Defence Secretary Liam FoxDr Fox wrote the letter before the National Security Council meeting on Tuesday

Defence Secretary Liam Fox has warned the prime minister that “draconian” spending cuts while the UK is at war will result in “grave consequences”.

In a private letter to David Cameron leaked to the Daily Telegraph, he said he would refuse to back any substantial cuts to the armed forces.

Dr Fox said cuts would risk seriously damaging the morale of troops and the reputation of the Conservative Party.

He said he was “appalled” by the leak and the culprit would be found.

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In the letter to Mr Cameron leaked to the Daily Telegraph he said: “Party, media, military and the international reaction will be brutal if we do not recognise the dangers and continue to push for such draconian cuts at a time when we are at war.”

He suggested the Tories could destroy “much of the reputation and capital” they had accrued on defence.

If cuts go ahead, he warns, the “range of operations that we can do today we will simply not be able to do in the future”.

The letter was written ahead of Tuesday’s meeting of the National Security Council, where defence chiefs, the prime minister and the defence secretary considered the options for the strategic defence and security review (SDSR).

Dr Fox expressed concern that the process was looking more like a spending review than a strategic review.

“Frankly this process is looking less and less defensible as a proper SDSR and more like a ‘super CSR’ (Comprehensive Spending Review),” he wrote.

The BBC’s Caroline Wyatt said the leak was damaging and one which made clear the tensions and divisions over the defence review.

“I am utterly appalled by this breach of trust and have ordered a full investigation to find out how it happened”

Dr Liam Fox Defence Secretary

She said Downing Street was playing down the letter, saying it was natural for a defence secretary to make “robust representations” about his department’s budget.

Dr Fox described the leak as “totally unacceptable”.

“It is entirely normal that ministers should make representations to the prime minister during the strategic defence and security review and the Comprehensive Spending Review. That is an entirely proper part of the process of government,” he said.

The prime minister is fully entitled to expect those representations are “made in private and kept private,” he said.

“I am extremely angry this confidential communication has been made public,” he added.

“I am utterly appalled by this breach of trust and have ordered a full investigation to find out how it happened. We will stop at nothing to ensure that the culprit is found.”

The National Security Council did not make any final decisions on Tuesday, and it is due to meet again after the Tory conference next week, with the review due to report in October.

At the meeting, the prime minister said the review needed to be driven by strategy, not just spending.

The review began after the general election. The last review, in 1998, took more than a year.

It is designed to look at the UK’s role in the world, evolving threats to the country’s interests, the nature of the UK’s response to such threats and whether the armed forces are equipped to deal with future challenges.

Annual defence spending in the UK currently stands at about £37bn, which is around 2.5% of GDP. Cuts of 10-20% are expected as part of the government’s austerity measures to reduce public spending.

Speculation on possible cuts has ranged from the scrapping of new aircraft carriers to grounding the RAF’s entire fleet of more than 70 Tornado jets years earlier than planned.

On Monday, Foreign Secretary William Hague said the defence budget – over-committed by £38bn over the next decade – must be dealt with.

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EU lays out new debt punishments

EU flagsEurope is following the US in implementing financial reform

Tens of thousands of people are set to take to the streets of Brussels and other European capitals to protest at swingeing government cuts.

It comes as jobs across the public sector fall prey to unprecedented levels of government debt.

The marchers will pass within sight of the European Commission building.

Meanwhile, inside, this body will be tasked with trying to stop the region ever experiencing its current crippling difficulties.

Just minutes before the shouts and whistles pass by the Commission its President, Jose Manuel Barrosso will present new plans to prevent a “Greece” ever happening again.

Economic management

Some of the EU plan is straightforward.

No one doubts that Greece consistently “misreported” how much it was borrowing so there will be a drive to make sure EU countries aren’t massaging their statistics.

More controversially however, President Barrosso will outline plans to punish eurozone countries which either borrow too much money or fail to manage their economies properly.

The desire to crack down on debt will come as no surprise to anyone who has been looking at the European economy for the last two years.

Huge debts

But the proposed punishments will raise eyebrows.

Any eurozone country with a national debt consistently above 60% of GDP could be whacked with a fine.

The size would vary from country to country but in France’s case it would be around 400m euros.

Now, this all makes sense when looking at countries like Greece and Italy which racked up huge debts in the good times.

Property bubble

But it doesn’t solve the problems of a country like Spain.

Spain never was a debt glutton and actually ran a budget surplus in the years leading up to the crisis.

But that didn’t stop it being fingered by international investors as a big debt risk.

Why? Well quite simply because property prices collapsed, and the construction sector – a huge part of the economy – quickly followed.

In other words there was a massive property “bubble”.

‘Economic imbalances’

The situation was similar, if not worse, in Ireland.

It is precisely because of this kind of problem that the commission is looking to monitor what it calls “economic imbalances”.

If a country is seen to fostering a bubble, or perhaps letting wages rise too quickly it could face a reprimand, and ultimately a fine.

Some will find this kind of intrusive approach to a sovereign state’s economy anathema.

However, the commission will simply point to Greece and Ireland and ask – “would you prefer this?”

Urgent task

But even if the member states swallow being told that their economies are imbalanced, the biggest hullabaloo will be saved for how the punishments for misbehaviour kick in.

The commission wants sanctions to be automatic but with a possible escape route if a transgressor can persuade other eurozone countries to let it off.

But automatic sanctions will be tough to take – with the French pointing out when fines are involved elected politicians should have the ultimate say, not unelected bureaucrats setting rigid rules.

Nevertheless, if anyone wants a reminder of how urgent a task tightening the rules for the eurozone really is, they will only need to step outside the commission building and watch the thousands of angry protectors passing by, worried about their jobs and the prospects for their futures.

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