Wednesday, September 30, 2009

American arrested in Japan for kidnapping own kids

By SHINO YUASA, Associated Press Writer

TOKYO – An American father on a mission to reclaim his young children in Japan was arrested over their alleged abduction while they were walking to school with his ex-wife, officials said Wednesday.

Christopher John Savoie snatched his two children — an 8-year-old boy and a 6-year-old girl — by force Monday in the southern city of Fukuoka, shoved them into a car and drove away, said Akira Naraki, a police spokesman in the city.

He was arrested by Japanese police as he tried to enter the U.S. Consulate in Fukuoka with the children, said Tracy Taylor, a spokeswoman at the consulate.

The number of such cases is growing in Japan — mostly with Japanese mothers bringing their children back to the country and refusing to let their foreign ex-husbands visit them. The United States, Canada, Britain and France issued a joint statement in May urging Japan to address the problem.

Savoie, a 38-year-old from Franklin, Tennessee, was arrested after his ex-wife, Noriko, alerted the police. The children were returned to her, Taylor said. Efforts to reach her were unsuccessful.

Local police said they received permission from the court to keep Savoie in custody for 10 days.

The divorced couple and the two children were living in Tennessee, but Noriko Savoie came to Japan with the two children in August without telling her ex-husband, Taylor said.

In Japan, if a couple gets divorced, one parent often gets sole custody of their children — almost always the mother. Divorced fathers typically don't get much access to their children.

Japan has yet to sign the 1980 Hague Convention on International Child Abduction, which seeks to standardize laws among participating countries to ensure that custody decisions can be made by appropriate courts and protect the rights of access of both parents. Japan has argued that refusing to sign the Hague Convention helped shield Japanese women and their children fleeing from abusive foreign husbands.

The United States, Canada, Britain and France in May urged Japan to sign the Hague Convention. At least 70 dispute cases exist between Japan and the U.S., but Tokyo does not have the exact number.

Japanese tend to prioritize the mother's role over the rights of the father or children, said Hideki Tani, a lawyer who is an expert on the issue.

"In Japan, it's not considered a serious problem if a mother takes her children with her without telling her ex-husband when they get separated or divorced," Tani said. "But for many people outside Japan, that's outrageous."

Japan and the U.S. have very different approaches to divorce and raising children, said David Marks, U.S. Embassy spokesman in Tokyo. "Japanese privacy laws can create frustrations for 'left-behind' parents."

Japan is aware of the need to address the issue and that it is seriously considering joining the Hague convention, said Kosei Nomura, a Foreign Ministry official in charge of international law.

"The problem is growing, and it has become a diplomatic issue," Nomura said. "The question is if we should insist on the Japanese traditional standard to resolve disputes over children as a result of broken international marriages."

The couple was divorced in January and the mother was given primary custody of the children, according to records from the Chancery Court for Williamson County in Tennessee that were posted on the Web site of Nashville television station WTVF.

Savoie has since remarried. His wife, Amy, told CBS that Noriko was not letting the children talk to him on the telephone after she took them to Japan. Amy said she doesn't know if she and her husband will ever see the children again.

"We hope if she is granted custody over there, that they will come and find us when they are in their 20s maybe and come see that we still love them," she said.

American Consulate officials have twice visited Savoie, who now has American and Japanese lawyers, Taylor said.

A lawyer for Savoie, Jeremy Morley, told NBC he had about 100 clients with difficulty seeing their children after ex-spouses took them to Japan.

"This is an untold story," he said.

U.S. Representative Chris Smith, a New Jersey Republican, told The Associated Press he has introduced a bill called the International Child Abduction Prevention Act of 2009, which would penalize countries that show a pattern of not cooperating to resolve such cases. Penalties could include being denied military aid and certain loans, he said.

"It is abominable what has happened here," Smith said early Wednesday.

He also said he had "guarded hope" that Japan's new prime minister, Yukio Hatoyama, would use the situation as a chance to take another look at the country's policy.

___

Associated Press Writers Mari Yamaguchi and Malcolm Foster in Tokyo and Bernard McGhee in Atlanta contributed to this report.

Friday, September 25, 2009

Statement at the Conclusion of an IMF Staff Mission to Cambodia

Press Release No. 09/325
September 24, 2009
Source: IMF

The following statement was issued in Phnom Penh on September 23 at the conclusion of an International Monetary Fund (IMF) staff mission to Cambodia:

“An IMF mission visited Cambodia during September 9-23, 2009 to conduct the annual Article IV discussions. During the visit, the mission took stock of recent economic and financial developments and held policy discussions with ministers and senior officials of the Royal Government of Cambodia on their macroeconomic and financial policies. The mission also met a wide range of representatives from the business community and Cambodia’s development partners.

“The global economic crisis is having a larger impact on Cambodia’s economy than previously anticipated, and as a result, real GDP growth is now projected to be negative 2¾ percent in 2009.

• Garment export volumes are projected to decline by 15 percent this year, mainly due to lower consumption in the United States (Cambodia’s key garment export market) and intense competition from regional producers, who have raised their market share by strengthening competitiveness.

• In the tourism sector, air arrivals have fallen by double digits, reflecting the global recession, rising unemployment, and falling incomes in most of Cambodia’s tourism-source countries. As a consequence, overall tourism spending is sharply lower, despite the increase in same-day and land arrivals from neighbor countries.

• With few notable exceptions, work on large construction projects has slowed significantly in the wake of falling property prices. New project approvals are sharply lower, and imports of construction materials are down significantly compared to 2008, with bank lending to the property also down.

• Agricultural production is a bright spot, with a good harvest expected in 2009. Investment in rural roads and irrigation systems should raise productivity and reduce operating costs in the period ahead.

“Looking to 2010, there are some hopeful signs that the global downturn may be bottoming out. A pick-up in external demand is expected to lead to a modest recovery in Cambodia’s economy. Growth in 2010 is projected at about 4¼ percent, though risks remain tilted to the downside, given uncertainties over the strength of the global recovery.

“With lower domestic demand and commodity prices, inflation pressures have eased in 2009, with headline inflation expected to be around 5¼ percent (year-on-year) by end-2009. Inflation should remain in the mid-single digits through 2010. However, vigilance is required to ensure that fiscal stimulus does not lead to renewed inflation pressures.

“Policy discussions focused on how best to provide adequate support targeted at priority sectors, while at the same time maintaining macroeconomic stability and low inflation.

“With respect to fiscal policy, the mission welcomed indications that the 2009 budget’s revenue target would likely be met, largely due to commendable administration efforts. However, on current trends, very large increases in the civil service and military wage bill and higher capital spending are projected to raise the budget deficit to 6¾ percent of GDP in 2009 from around 2¾ percent in 2008. The mission estimated that domestic financing of this deficit would imply a drawdown of government deposits of about 1¼ percent of GDP, reversing a long trend of deposit accumulation. This situation bears close watch, since domestic financing of deficits in the past has contributed to macroeconomic instability, placing pressure on the exchange rate and consumer prices. The mission noted that over the remainder of the year, efforts should focus on ensuring continued strong revenue collection and avoiding non-priority spending.

“For 2010, the mission recommended the budget aim to reduce the deficit to under 5½ percent of GDP. This level of deficit would eliminate the need for further large-scale domestic financing, while at the same time provide adequate fiscal space for spending on priority sectors and pursuing key development objectives. The mission cautioned against allowing significant increases in the wage bill to become entrenched, as this could risk crowding out spending on priority sectors such as health, education, and operations and maintenance, and further increase domestic financing needs if not accompanied by significant revenue gains.

“With respect to monetary policy, the mission noted that ample liquidity now exists in the banking system, and agreed with the authorities that there was no need for a reduction in the reserve requirement. The mission also noted that greater exchange rate flexibility through limiting intervention to smoothing volatility would help protect international reserves, deepen the foreign exchange market, and allow the exchange rate to play a greater role in facilitating external adjustment.

‘The mission commended the National Bank of Cambodia for taking actions to safeguard the health of the banking system. As in many other countries, the downturn in Cambodia’s growth has been accompanied by rising non-performing loans at banks. The mission and the authorities fully agreed that close supervision of banks and strong enforcement of prudential regulations needs to continue, especially proper asset classification and provisioning of non-performing loans.”

Thursday, September 24, 2009

Cambodia's economy hit hard by U.S. slowdown - IMF

PHNOM PENH, Sept 23 (Reuters) - Cambodia's economy, one of the fastest growing in Southeast Asia just two years ago, will probably contract by about 2.75 percent this year, hit hard by the slowdown in the United States, the IMF said on Wednesday. "The global economic crisis is having a larger impact on Cambodia's economy than previously anticipated," David Cowen, deputy division chief for the International Monetary Fund's Asia and Pacific Department, told a news conference.

However, the economy will rebound next year with growth of 4.25 percent, added Cowen, who led a team that recently met with local finance officials as part of an IMF mission to Cambodia.

After decades of war and upheaval, including the Khmer Rouge "killing fields", Cambodia witnessed an unprecedented boom before the global financial crisis struck, its economy expanding at around 10 percent annually in the five years leading up to 2008.

The growth, fuelled mainly by garment manufacturing, tourism and real-estate development, came to an abrupt halt during the global recession. Garment export volumes are likely to fall by 15 percent this year, hit by the weak U.S. economy, Cowen said.

Tourist arrivals have fallen by double digits, Cowen said, noting that recent signs of improvement may reflect day-tripping arrivals from across the border rather than wealthier tourists from other parts of the world whose spending lifts the economy.

"Exports are contracting. So we are likely to see negative export growth in Cambodia in 2009. Imports are contracting at an even faster rate," he added, noting that some of that reflected falls in fuel prices.

"The overall level of petroleum imports will be down quite significantly this year," he said.

He expected annual inflation of more than 5 percent near the end of 2009, rising further to about 6 percent next year.

Even though the economy remains one of Asia's smallest, with gross domestic product of around $8.9 billion, international investment had been rising sharply, flowing heavily into the hotel sector, before reversing course in the financial crisis.

Foreign direct investment probably nearly halved to an estimated $490 million this year from $815 million in 2008, with the drop led mainly by construction investment, Cowen said.

Large construction projects have slowed, new project approvals are sharply lower and imports of construction materials are down significantly from last year, he added.
"There's negative growth in construction imports and negative growth in consumer imports."

Bank lending for property was also down, he said, following a real-estate boom that turned the once-sleepy capital into a building site.

But Cambodia's vast agricultural sector, which makes up about 34 percent of the economy, has held up well, with a good harvest expected this year.

And there's ample liquidity in the banking system.

"There has been healthy deposit growth in the system as a whole this year, in part due to very attractive term deposit rates that banks are paying in Cambodia. We have expressed some concern that these high deposit rates could have some impact on bank profitability going forward."

(Writing by Jason Szep; Editing by Alan Raybould)