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The US government hopes to transfer some of the detainees to other countries but negotiations have proved difficult, particularly over the issue of whether the US is willing to also receive detainees. Congress has rejected an administration request for funding to close down Guantanamo, amid widespread opposition to bringing detainees on to the US mainland.

He was taken to Guantanamo with other "high value" detainees in late 2006.

"With his appearance in federal court today, Ahmed Ghailani is being held accountable for his alleged role in the bombing of US embassies in Tanzania and Kenya and the murder of 224 people," a statement by US Attorney General Eric Holder said.

According to the transcript of a closed-door hearing in March 2007, Mr Ghailani admitted delivering explosives used to blow up the US embassy in the Tanzanian city of Dar es Salaam.

He is alleged to have risen through the ranks of al-Qaeda to become a bodyguard of Osama Bin Laden.

The 1979 revolution expropriated the assets of foreign investors and the nation's wealthiest families; oil had long been nationalized, but the mullahs seized virtually everything else of value--banks, hotels, car and chemical companies, makers of drugs and consumer goods. What distinguishes Iran is that many of these assets were given to Islamic charitable foundations, controlled by the clerics. According to businessmen and former foundation executives, the charities now serve as slush funds for the mullahs and their supporters.

Dozens of interviews with businessmen, merchants, economists and former ministers and other top government officials reveal a picture of a dictatorship run by a shadow government that--the U.S. State Department suspects--finances terrorist groups abroad through a shadow foreign policy. Its economy is dominated by shadow business empires and its power is protected by a shadow army of enforcers.

Ironically, the man most adept at manipulating this hidden power structure is one of Iran's best-known characters--Ali Akbar Hashemi Rafsanjani, who has been named an ayatollah, or religious leader. He was the speaker of parliament and Khomeini's right-hand man in the 1980s, president of Iran from 1989 to 1997 and is now chairman of the powerful Expediency Council, which resolves disputes between the clerical establishment and parliament. Rafsanjani has more or less run the Islamic Republic for the past 24 years.

He played it smart, aligning himself in the 1960s with factions led by Ayatollah Khomeini, then becoming the go-to guy after the revolution. A hard-liner ideologically, Rafsanjani nonetheless has a pragmatic streak. He convinced Khomeini to end the Iran-Iraq war and broke Iran's international isolation by establishing trade relations with the Soviet Union, China, Saudi Arabia and the United Arab Emirates. In the 1990s he restarted Iran's nuclear program. He is also the father of Iran's "privatization" program. During his presidency the stock market was revived, some government companies were sold to insiders, foreign trade was liberalized and the oil sector was opened up to private companies. Most of the good properties and contracts, say dissident members of Iran's Chamber of Commerce, ended up in the hands of mullahs, their associates and, not least, Rafsanjani's own family, who rose from modest origins as small-scale pistachio farmers.

its chairman, Ayatollah Mahdavi Kani, openly announced their support for Ahmandinejad.

Iranian state radio reports that more than 450 people were arrested during Saturday's rallies, mostly around Tehran's Azadi square.

Forty police officers were also wounded, and 34 government buildings damaged, the Fars news agency reported. 

Mousavi had renewed calls on Sunday for his supporters to continue to protest. In a statement published on the website of his Kalameh newspaper, he said that people had the right to protest against "lies and fraud", but also urged them to show restraint as they take to the streets. "The revolution is your legacy. To protest against lies and fraud is your right. Be hopeful that you will get your right and do not allow others who want to provoke your anger ... to prevail," he said.

Shortly before the announcement of the transfer to Bermuda, Qin Gang, a spokesman for the Chinese Foreign Ministry, called the Uighur detainees "terrorist suspects" and insisted they be returned to China. The Obama administration has ruled that out, fearing they could be tortured or executed.

And you were arrested in 1999 on charges of revealing state secrets. Is it true that these "secrets" included official newspapers published openly in Xinjiang?Yes, it's true. I had state-run newspapers with articles stating the numbers of deaths, arrests, and executions of Uighurs and with printed speeches by leaders saying they needed to "strike hard" against Uighurs. I sent these ordinary newspapers to my husband [who was then overseas]. These were openly available publications.

It would be great if the U.S. government could open a consulate in Urumqi. Then it could monitor events on the ground and the Chinese government couldn't just crack down.

Two weeks ago the Taliban occupied a Sufi shrine in Buner, accusing locals of using it for "un-Islamic" practices. On Wednesday they swept through the main town, Daggar. Gun-toting militants looted aid agency offices, stole western-funded vehicles and forced police to retreat into their stations.

On Wednesday the US secretary of state, Hilary Clinton, accused President Asif Ali Zardari's government of "basically abdicating to the Taliban and the extremists". After an outcry from Pakistani officials, she modified her tone yesterday, conceding there was an "increasing awareness" of the threat within government circles.

The army spokesman, General Athar Abbas, said that western fears were "overblown" and called for patience in dealing with the militants. Taliban violence was swinging divided public opinion against the militants, he said. "We are giving them enough rope to hang themselves."

Certainly a new sense of urgency is gripping Pakistan's political class, where it has been fashionable to call the fight against the Taliban "America's war". The opposition leader, Nawaz Sharif, urged the government to contain the militants within Swat.

A more surprising statement came from Maulana Fazlur Rahman, the leader of the pro-Taliban Jamiat Ulema-e-Islam party, who warned the national assembly on Wednesday: "If Taliban continue to move at this pace they will soon be knocking at the doors of Islamabad."

But there is little sense yet of a concerted effort to push back the militants, who have exposed the fragility of the federation and resurrected fears that the country is heading towards break-up.

The Buner assault is likely to strain the controversial Swat peace accord. In exchange for peace, the provincial government, headed by the secular Awami National party, agreed in February to introduce sharia law in Swat and seven adjoining districts known as Malakand Division - an area of about 10,000 square miles that accounts for one third of the North West Frontier province. But since the deal, the Taliban have established control over much more than the judicial system.

In Mingora, the valley's commercial hub, police have been reduced to directing traffic and secular politicians have fled, many under death threats.

Unemployment, inflation, and mortgage repayments are soaring as a result of the crash, which has saddled Iceland with levels of debt running to tens of thousands for each of the population of 320,000 and necessitating a 10bn-dollar bailout programme led by the International Monetary Fund.

The rightwing and anti-EU Independence party has been in power for 18 years and has dominated Icelandic politics for 70 years. Its vote fell to 23% - its lowest tally ever - taking 16 seats as opposed to 25 two years ago.

The result leaves the country run by a former air stewardess and a former lorry driver - Sigurdardottir and the Left-Greens' leader, Steingrimur Sigfusson, who is expected to be finance minister. Both have been heading an interim government since February.

Public bitterness at the sudden collapse of a quality of life that was among the highest in the world fuelled fears that voters would stay at home on Saturday in protest at the entire political system. "I don't care who's in charge, right or left. If things don't work out, we'll be back on the streets," said Hordur Torfason, a leader of the January protests that brought down the previous centre-right government. But turnout, at 85%, was higher than in 2007's election.

Sigurdardottir promptly claimed the poll triumph as a mandate for negotiating entry to the EU - a central campaign pledge. Brussels would welcome Iceland's application and the country could join quickly since it already applies about 75% of EU law. However, Sigurdardottir's junior coalition partner is anti-EU and coming up with a coherent joint policy on the issue will be a key test of the coalition.

For decades, Iceland has staunchly rebuffed talk of joining the EU, fearful of handing control of its vital fishing sector to the European Commission, which sets member states' catch quotas. But Brussels admitted last week that decades of fisheries policy had resulted in failure and pledged to devise a new system.

SPIEGEL: Only 13 percent of Germany's stimulus funds are slated for environmental measures. There is little evidence here of the "crisis as opportunity" you repeatedly mention. Gabriel: That puts us in fourth place worldwide, which isn't bad. If you added the money other countries earmark for renewable energy in their national budgets, which goes through the cost of electricity in Germany, we would be even higher up in the ranking, perhaps even at the top.

SPIEGEL: At least that would have deserved the name environmental premium. Gabriel: But, as environment minister, I am very interested in a thriving German automobile industry, because I can only pay for the rising costs of environmental protection at home and abroad if there are people in Germany with jobs and who pay taxes. The increase in expenditures for environmental and climate protection in the federal budget from €875 million ($1.14 billion) under a Green environment minister to €3.4 billion ($4.4 billion) today would not work without the economic success of German industry.

SPIEGEL: And what happens to your own credibility, when you reward people for buying cars by paying a so-called environmental premium that makes no environmental sense? Gabriel: I still call it the scrapping premium, because the main goal is to stabilize auto sales. But the project clearly has an economic impact, because new vehicles emit less CO2 and pollutants per kilometer driven than old ones. SPIEGEL: But the production of new car consumes enormous resources. Gabriel: One could take that argument a step further and say: It would be best for the environment if we stopped buying or producing any new products. That would be the way to save the most energy and CO2. The next thing you'll ask me is why the government didn't give people €2,500 ($3,250) to buy tickets for public transportation.

The environmental industry, with its new technologies, is the biggest market worldwide. We must retain our leading position, because other countries, like the United States, have started to compete with us.

SPIEGEL: US President Barack Obama is depriving the Germans of their leadership role in climate protection?

Gabriel: No, but his economic stimulus programs are good, and he introduced an overdue change of direction in climate policy. But as far as concrete reduction targets are concerned, his current proposals are still not sufficient. America remains well removed from the European targets and the necessary international targets in climate protection. Many in politics are so pleased about the new American administration that they want to be nothing but nice to the United States. But in doing so, we fail to recognize that the American president, no matter who he is, will always strongly champion American interests.

SPIEGEL: Obama has offered to reduce American CO2 emissions to 1990 levels by 2020. Gabriel: But that is still far from enough. International climate scientists believe it is vital that we reduce CO2 emissions by 2020 to a level 25 to 40 percent lower than in 1990. And the developing and emerging nations expect serious efforts on the part of the industrialized nations. The Americans must also show some movement if the December climate summit in Copenhagen is to be a success. Otherwise, many will hide behind the United States. If that happens, our efforts will fall far short of what is needed to stop climate change and its devastating consequences. We must now discuss this openly worldwide.

Under the "1-2-3 deal," similar to one the United States signed last year with India, Washington would share nuclear technology, expertise and fuel. In exchange, the UAE commits to abide by the Nuclear Non-proliferation Treaty and the International Atomic Energy Agency safeguards. The small oil-rich Gulf nation promises not to enrich uranium or to reprocess spent nuclear fuel to extract plutonium, which can be used to make nuclear bombs.

"It's being temporarily held up because of that tape," one senior official said.

The State Department had little to say publicly on the torture tape incident, but its 2008 human rights report about the United Arab Emirates refers to "reports that a royal family member tortured a foreign national who had allegedly overcharged him in a grain deal."

U.S. Rep. James McGovern -- the Massachusetts Democrat who co-chairs the congressional Human Rights Commission

McGovern asked Clinton to "place a temporary hold on further U.S. expenditures of funds, training, sales or transfers of equipment or technology, including nuclear until a full review of this matter and its policy implications can be completed." He also asked that the United States deny any visa for travel to the United States by Sheikh Issa or his immediate family, including his 18 brothers, several of whom are ruling members of the UAE government.

UAE Crown Prince Mohammed bin Zayed Al Nahyan, a half-brother of Sheikh Issa, is expected to visit Washington sometime next month.

The civil nuclear agreement was signed in January between the United Arab Emirates and the Bush administration, but after the new administration took office, the deal had to be recertified

The deal is part of a major UAE investment in nuclear, and it has already signed deals to build several nuclear power plants. The United States already has similar nuclear cooperation agreements with Egypt and Morocco, and U.S. officials said Washington is working on similar pacts with Saudi Arabia, Bahrain and Jordan.

When the Bush administration signed the deal in January, it stressed the UAE's role in global nonproliferation initiatives, including a donation of $10 million to establish an International Atomic Energy Agency international fuel bank.

Congressional critics fear the deal could spark an arms race and proliferation in the region, and the UAE's ties to Iran also have caused concern.

Iran is among the UAE's largest trading partners. In the past, the port city of Dubai, one of the UAE's seven emirates, has been used as a transit point for sensitive technology bound for Iran.

Dubai was also one of the major hubs for the nuclear trafficking network run by Pakistani nuclear scientist Abdul Qadeer Khan, who admitted to spreading nuclear technology to Iran, North Korea and Libya up until the year 2000.

Such ties contributed to stiff opposition in Congress to the failed deal for Dubai Ports World to manage U.S. ports.

Officials said they expect the deal to be sent up to the Hill for ratification within the next few weeks, given that there has been little blowback from the publication of the tape, except for McGovern's letter to Clinton. "It will be sent very soon," one official said.

UAE Ambassador to the U.S. Yousef Al Otaiba told CNN his government always expected the deal to be sent to the Senate in early May, regardless of the controversy surrounding the tape. "As far as we are concerned, the deal is on track and this has not affected the timing," he said.

A second government adviser, Hu Angang, has said China should start cutting overall emissions from 2020.

While that is a minority view and final decisions are some way off, the proposals are striking because they are at odds with China's official negotiating stance.

Beijing has hitherto rejected carbon emission caps or cuts, arguing that its priority is to improve its people's living standards – and that the west caused the global warming problem and should fix it. But developed nations argue that they cannot commit to deep cuts and to substantial funding for developing nations to fight climate change unless those countries embrace emissions targets.

Environmental groups and foreign diplomats said a carbon intensity target would be a significant step forward. Any move by China, the world's fastest expanding major economy, biggest emitter of greenhouse gases and most influential developing nation, would have an enormous impact on the outcome of the Copenhagen summit in December."It would be a significant step for China to set a target that directly links carbon emissions to economic growth for the first time," said Yang Ailun of Greenpeace."This is a green shoot of pragmatism that should be nurtured," said one European diplomat.

Hu, an influential economist and advocate of "green revolution", is pressing the government to take a leadership role in Copenhagen by making a public commitment to reduce emissions, and last week submitted the proposal to set a new carbon dioxide goal.He is one of 37 members of an elite body that advised the premier, Wen Jiabao, to include ambitious targets of a 20% improvement in energy efficiency and 10% reduction of pollution in the 2006-2010 plan. With government figures suggesting the country is on course to approach or exceed those goals, Hu suggests they be extended for the next plan with the addition of the carbon dioxide target.

If his proposal is accepted, Hu believes China will be able to make an international pledge this year to reduce carbon dioxide emissions from 2020.

the debate on China's role in greenhouse gas reductions is widening. Last month, the Chinese Academy of Science reported that the country's carbon dioxide emissions relative to GDP should be reduced by 50% by 2020, and that total CO2 emissions should peak between 2030 and 2040 if the country introduced more stringent energy-saving policies and received more financial support and technology from overseas.

Citing new figures from the state bureau of energy, Hu said China overtook the US last year as the world's biggest energy producer with 2.6bn tonnes of standard coal equivalent, seven years ahead of expectations. "If we can't succeed in reducing energy consumption, then no one can. I tell the government that a 1% failure in China is a 100% failure for the world," said Hu. "We must satisfy our national interest and match it with the interest of humanity."

"All this crossfire shows what I really stand for is our own national interest," she says. Then she is quick to add: "The Russians worry that we are trying to privatize our pipelines by stealth, but that's not the case and would be illegal. We have to reassure them on that."

"There is no doubt we want to join the EU. At least 60 percent of our public opinion favors this option, and we are now closer to this goal than, say, one year ago. This policy must be the essence of all our actions," she says. But, she warns, it cannot succeed by confronting Moscow or ignoring its concerns.

He says that a state prosecutor to whom he took his findings refused to pursue the cases for fear of being killed himself. Gordan Malic is another journalist who now relies on police protection. "Organised crime has become part of the establishment," he says.

The deputy head of Croatia's privatisation fund is currently on trial after he was secretly filmed by prosecutors apparently stuffing a brown envelope filled with money into his pocket. The pictures were all over the newspapers, the film is on YouTube (in Croatian). The Index of Economic Freedom recently ranked Croatia below several African states in one of its corruption measurements.

"You can see corruption with government officials and practically ministerial-level people with wealth that cannot be explained," says Natasha Srdoc from the anti-corruption think tank the Adriatic Institute for Public Policy.

"Croatia needs to put an independent judiciary, the rule of law, and protection of property rights in place before it gets into the EU, because if it is allowed to get in before then it will not reform - it won't do anything."

Croatian police recently arrested a number of suspects in a mafia crackdown.

The crackdown has been prompted by Croatia's desire to join the European Union (on 1 April Croatia became a member of Nato). But some here, like politics professor Zarko Puhovski of Zagreb University, complain of double standards.

"If you have Bulgaria and Romania in the European Union, if you have a divided Cyprus, if you have Greece with all the corruption and problems with its judiciary, if you have Baltic states with catastrophic minority politics and so on, then you can't see why Croatia has to commit itself to all these reforms before being accepted."

Others suggest that some EU member states opposed to further expansion have exaggerated Croatia's problems with organised crime and corruption in order to damage its accession prospects.

Mr. Netanyahu said Tuesday that his government would support a “Palestinian security apparatus that will fight terrorism” — apparently a reference to the forces being trained in an American-backed program under the Annapolis framework.

In 1996, Mr. Netanyahu prided himself on his establishment of a lean cabinet, with 18 ministers. The government established by Mr. Olmert in May 2006 had 25.

In Israel, however, public criticism has focused on the sheer size of the new cabinet, swelled by Mr. Netanyahu’s attempts to satisfy his coalition partners’ competing demands. With 30 ministers and at least 7 deputy ministers, the cabinet has grown into the largest in Israel’s history, prompting charges that it will prove unmanageable and constitute a waste of public funds during a recession.

Mr. Netanyahu has so far emphasized his plans for economic development in the West Bank. His refusal to endorse the two-state solution has led to skepticism and despondency on the Palestinian side, exacerbated by fears that his government will expedite Jewish settlement expansion in the West Bank.

Meanwhile, not all Israelis accept the gloomy forecasts of strained relations with Washington. “As long as Hamas is in power in Gaza, we are off the hook,” said Efraim Inbar, a professor of political science at Bar-Ilan University. Under these circumstances, “nobody can really pressure Israel to do anything,” he said in a telephone interview.

Stiglitz: The banks that survived 80 years ago continued to lend money. Today many banks aren't lending money anymore, above all the large investment banks. This will deepen the crisis.

SPIEGEL: The US government's emergency plan is supposed to prevent this, though. The banks receive money from the state so they can continue to give loans. Stiglitz: That's the idea, but it doesn't work. We're just throwing money at them and they pay billions of it out in bonuses and dividends. We taxpayers are being robbed for all intents and purposes in order to reduce the losses that some wealthy people bear. This has to be changed.

SPIEGEL: The American government has committed over a trillion dollars to save the banks and $789 billion to boost the economy. Do you think this is too little? Stiglitz: I do. More than $700 billion sounds like a lot, but it's not. On the one hand, a large part of the money will first be given out next year, which is too late. On the other, a third of it is drained away by tax cuts. They don't really stimulate consumption, because people will save the majority of that money. I fear that the effect of the American economic stimulus plan won't be even half as big as expected.

SPIEGEL: Washington sees it that way, too. In particular, it wants countries with strong exports, like Germany, to offer further economic stimulus packages. Do you think that's justified?

Absolutely. Export surpluses are counterproductive in times of economic crisis. They have to be reduced through economic stimulus programs, for example.

I propose that countries with a positive trade balance should stream part of their surplus to the International Monetary Fund. This can then stimulate the economy in developing countries or prevent the economy from collapsing in Eastern Europe.

The Americans have always been masters at changing a supposed regulation measure into further deregulation.

The allies will offer more funds but no more than several thousand new personnel members, according to alliance military planners. Many of those will not be soldiers, but police trainers to meet a central pillar of the president’s new Afghan strategy, which focuses on an expansion of Afghan security forces. But even for the small numbers of European combat reinforcements, check the fine print: Nearly all will be sent to provide security for Afghanistan’s elections this summer, and will not be permanently deployed.

Defense Secretary Robert M. Gates and his British counterpart, John Hutton, have publicly warned that the performance of some European troops demonstrates that NATO risks slipping toward a two-tiered alliance. In that event, it would be divided between those that can and will fight, like Britain, Canada, France and Poland, and those that cannot or will not because of public opinion at home.

In many cases, European capitals have placed severe restrictions on their forces assigned to NATO’s International Security Assistance Force, or I.S.A.F. That has been such a hindrance to the war effort, in the view of some American commanders, that they ruefully say the alliance mission’s initials now stand for “I Saw America Fight.”

Mr. Topolanek’s comments during a speech to the European Parliament underscored unresolved differences.

Mr. Topolanek’s remarks were considered impolitic, with the German leader of the Socialist group in the European Parliament, Martin Schulz, telling him, “You have not understood what the task of the E.U. presidency is,” and describing his comments as “not the level on which the E.U. ought to be operating with the United States.”

A Czech spokesman said that Mr. Topolanek meant to say that the European Union would be on the way to hell if it increased its own spending too much, rather than predicting that the United States was doomed.

Mr. Topolanek is not alone in his concern that Mr. Obama’s stimulus package, which will push the United States budget deficit this year to 10 percent or more of gross domestic product, will put a huge strain on global financial markets. German officials have also criticized the evolving American program, and many other European nations have declined to create fiscal stimulus programs anywhere near as large as that of the United States, arguing that too much extra money will lead quickly to inflation.