Catalan election weakens bid for independence from Spain












BARCELONA, Spain (Reuters) – Separatists in Spain’s Catalonia won regional elections on Sunday but failed to get the resounding mandate they need to push convincingly for a referendum on independence.


Catalan President Artur Mas, who has implemented unpopular spending cuts in an economic crisis, had called an early election to test support for his new drive for independence for Catalonia, a wealthy region in northeastern Spain.












Voters handed almost two thirds of the 135-seat local parliament to four different Catalan separatist parties that all want to hold a referendum on secession from Spain.


But they punished the main separatist group, Mas’s Convergence and Union alliance, or CiU, cutting back its seats to 50 from 62. That will make it difficult for Mas to lead a united drive to hold a referendum in defiance of the constitution and the central government in Madrid.


“Mas clearly made a mistake. He promoted a separatist agenda and the people have told him they want other people to carry out his agenda,” said Jose Ignacio Torreblanca, head of the European Council on Foreign Relations’ Madrid office.


The result will come as a relief for Spanish Prime Minister Mariano Rajoy, who is battling a deep recession and 25 percent unemployment while he struggles to cut high borrowing costs by convincing investors of Spain’s fiscal and political stability.


Mas, surrounded by supporters chanting “independence, independence”, said he would still try to carry out the referendum but added that, “it is more complex, but there is no need to give up on the process.”


Resurgent Catalan separatism had become a major headache for Rajoy, threatening to provoke a constitutional crisis over the legality of a referendum just as he is trying to concentrate on a possible international bailout for troubled Spain.


Frustration over the Spanish tax system, under which Catalonia shares some of its tax revenue with the rest of the country, has revived a long-dormant secessionist spirit in Catalonia. Catalans believe if they could invest more of their taxes at home their economy would prosper.


Mas had tried to ride the separatist wave after hundreds of thousands demonstrated in the streets in September, demanding independence for their region, which has its own language and sees itself as distinct from the rest of Spain.


In a speech to supporters on Sunday night, Mas recognized that he had lost ground and though CiU is still the largest group in Catalan‘s parliament, he said would need the support of another party to govern and to continue pushing through tough economic measures.


“We’ve fallen well short of the majority we had. We’ve been ruling for two years under very tough circumstances,” he said.


Traditional separatists the Republican Left, or ERC, won the second biggest presence in the Catalan parliament, with 21 seats. The Socialists took 20 seats. And Rajoy’s center-right People’s Party won 19.


Three other parties, including two that want a referendum on independence, split the remaining 25 seats. ECFR’s Torreblanca said the Catalan elections were similar to those around Europe in that economic woes have benefited marginal political groups, while larger, traditional parties have lost ground.


MAS MADE BIG BET


Mas’s bet on separatism may have helped out the big winner of Sunday’s election, the Republican Left, which more than doubled its seats in the Catalan parliament to 21 from 10,


“He talked about it so much that he ended up helping the only party that has always been for independence, which is the Republican Left,” said political analyst Ismael Crespo at the Ortega y Gasset research institute.


A legal referendum would require a change to the constitution, and Spain’s main parties in the national parliament, the Socialists and Rajoy’s People’s Party, have shown no appetite for that.


Mas’s CiU had traditionally been a pro-business moderate nationalist party that fought for more autonomy and self-governance for Catalonia without breaking away from Spain.


Mas broke with that tradition in September when he made a big bet on a referendum.


Catalonia, with 7.5 million people, is more populous than Denmark. Its economy is almost as big as Portugal’s and it generates one fifth of Spanish gross domestic product.


After a decade of overspending during Spain’s real estate boom, Catalonia and most of the country’s other regions are struggling to pay state workers and meet debt payments. Unemployment has soared and spending on hospitals and schools has been cut.


Mas was one of the first Spanish leaders to embark on harsh austerity measures after Catalonia’s public deficit soared and the regional government was shunned by debt markets.


Josep Freixas, 37 and unemployed, voted for CiU but recognized the party had lost seats “because people have been really affected by the spending cuts and by the crisis.”


At CiU headquarters on Sunday night Freixas carried a rolled up pro-independence flag – a single star against yellow and red stripes – that has become a symbol of the separatist movement.


Turnout was very high in the election, 68 percent, 10 percentage points higher than in the previous vote two years ago.


Many Catalans are angry that Rajoy has refused to negotiate a new tax deal with their largely self-governing region. Annually, an estimated 16 billion euros ($ 21 billion) in taxes paid in Catalonia, about 8 percent of its economic output, is not returned to the region.


Home to car factories and banks and birthplace of surrealist painter Salvador Dali and architect Antoni Gaudi, the region also has one of the world’s most successful football clubs, FC Barcelona.


Wary that separatism could spread to the Basque Country and beyond, Rajoy said this week that the Catalan election was more important than general elections.


(The story corrects billion to million in 20th paragraph.)


(Editing by Myra MacDonald and Sandra Maler)


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Israel successfully tests missile defense system












JERUSALEM (AP) — Israel successfully tested its newest missile defense system Sunday, the military said, a step toward making the third leg of what Israel calls its “multilayer missile defense” operational.


The “David’s Sling” system is designed to stop mid-range missiles. It successfully passed its test, shooting down its first missile in a drill Sunday in southern Israel, the military said.












The system is designed to intercept projectiles with ranges of up to 300 kilometers (180 miles).


Israel has also deployed Arrow systems for longer-range threats from Iran. The Iron Dome protects against short-range rockets fired by militants in the Gaza Strip and Hezbollah guerrillas in Lebanon. Iron Dome shot down hundreds of rockets from Gaza in this month’s round of fighting.


Israeli Defense Minister Ehud Barak said the success of Iron Dome highlighted the “immense importance” of such systems.


“David’s Sling,” also known “Magic Wand,” is developed by Israel’s Rafael Advanced Defense Systems and U.S.-based Raytheon Co. and is primarily designed to counter the large arsenal of Hezbollah rockets in Lebanon.


The military said the program, which is on schedule for deployment in 2014, would “provide an additional layer of defense against ballistic missiles.”


The next generation of the Arrow, now in the development stage, is set to be deployed in 2016. Called the Arrow 3, it is designed to strike its target outside the atmosphere, intercepting missiles closer to their launch sites. Together, the two Arrow systems would provide two chances to strike down incoming missiles.


Israel also uses U.S.-made Patriot missile defense batteries against mid-range missiles, though these failed to hit any of the 39 Scud missiles fired at Israel from Iraq In the first Gulf War 20 years ago. Manufacturers say the Patriot system has been improved since then.


Middle East News Headlines – Yahoo! News


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Nokia imaging chief to quit












HELSINKI (Reuters) – Nokia‘s long-time imaging chief Damian Dinning has decided to leave the loss-making cellphone maker at the end of this month, the company said in a statement.


The strong imaging capabilities of the new Lumia smartphone models are a key sales argument for the former market leader, which has been burning through cash while losing share in both high-end smartphones and cheaper handsets.












Nokia’s Chief Executive Stephen Elop has replaced most of the top management since he joined in late 2010 and Dinnig is the latest of several executives to leave.


Dinning did not want to move to Finland as part of the phonemakers’ effort to concentrate operations and will join Jaguar Land Rover to head innovations in the field of connected cars, he said on Nokia’s imaging fan site PureViewclub.com.


(Reporting By Tarmo Virki, editing by William Hardy)


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Vampires foil Tooth Fairy, Santa to claim box office win












(Reuters) – Teen vampire film “The Twilight Saga: Breaking Dawn – Part 2″ continued to take a bite out of the domestic box office, drawing $ 64 million in ticket sales over the five-day Thanksgiving holiday weekend to finish ahead of James Bond film “Skyfall.”


After opening with a massive $ 141.1 million last weekend, the finale of the “Twilight” franchise brought in a holiday swarm of fans to see teen favorites Robert Pattinson, Kristen Stewart and Taylor Lautner, pushing “Breaking Dawn” to $ 227 million in total domestic ticket sales.












“Skyfall,” starring Daniel Craig in the 23rd installment of the James Bond franchise, finished second, collecting $ 51 million in weekend ticket sales in the United States and Canada, according to studio estimates compiled by the box office division of Hollywood.com.


“Lincoln,” Steven Spielberg’s historical film on the last days of President Abraham Lincoln, grabbed third with $ 34.1 million over the Wednesday-through-Sunday period.


Making its debut in fourth place with $ 32.6 million was the animated film “Rise of the Guardians,” featuring the voices of Chris Pine and Alec Baldwin as the Tooth Fairy, Santa Claus and other childhood favorites who save the world.


“Life of Pi,” based on Yann Martel’s 2001 best-seller about a boy who survives on a raft with a tiger after his ship sinks, collected $ 30.15 million for a strong fifth-place finish.


“Rise of the Guardians,” produced by Dreamworks Animation for roughly $ 145 million, had been projected by distributor Paramount Pictures to gross $ 35 million in its first five days, according to Box Office Mojo.


Based on “The Guardians of Childhood” book series by children’s author William Joyce, the film will be the last Paramount will release for Dreamworks, whose films will be distributed next year by News Corp’s Fox studio.


Anne Globe, Dreamworks’ chief marketing officer, pointed to “the great parent reactions we’ve seen” to the film, and noting it was among the few choices for families through the end of year, said the studio was “hoping for very long legs through the holidays.”


The Ang Li film “Life of Pi,” on the other hand, performed stronger than expected. “We clearly exceeded our pre-release expectations,” said Chris Aronson, president of domestic distribution for 20th Century Fox.


“We’re seeing word of mouth in action, and a remarkably balanced demographic,” including strong ticket sales among those under 25, he said, adding “Many felt it was impossible to film, but Ang Li pulled it off.”


The remake of the 1984 Cold War film “Red Dawn,” finished seventh with $ 22 million in sales, behind animated feature “Wreck It Ralph”‘s $ 23 million take.


“Red Dawn” arrived at movie theaters four years after it was shot by MGM, but was delayed when the studio filed for bankruptcy in 2010. Last year, MGM decided to digitally alter the villains in the movie, inserting North Koreans instead of Chinese, after Hollywood began courting Chinese companies to help finance its films.


Propelled by the vampires, secret agents, presidents and nursery school favorites, Hollywood ticket sales totaled $ 290 million for the holiday weekend, beating the holiday weekend high mark of $ 273 million recorded in 2009. Hollywood studios often release their biggest holiday films on Wednesday to take advantage of school breaks the day before Thanksgiving.


The continued rush of fans to see teen favorites Pattinson, Stewart and Lautner pushed the “Twilight” installment to $ 227 million in total domestic ticket sales, making it the year’s sixth-largest, according to figures compiled by Box Office Mojo.


“Skyfall” with $ 221.7 million is just behind at number seven, while the year’s box office champ remains “Marvel’s The Avengers,” which has taken in $ 623 million to date.


(Reporting By Ronald Grover)


Movies News Headlines – Yahoo! News


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Germany rejects Swiss tax deal













Germany’s upper house of parliament has rejected a deal with Switzerland to tax German assets held in Swiss bank accounts.












The deal would have allowed Germans with undeclared assets in Switzerland to avoid punishment by making a one-off payment of between 21% and 41% of the value of their assets.


The deal had been negotiated in April and was due to take effect in January.


But it needed to be ratified by both parliaments.


The rejection by the German upper house, the Bundesrat, prolongs the dispute between the two countries over how to deal with the estimated 180-200bn euros (£145-160bn) of German assets hidden in Switzerland.


German Finance Minister Wolfgang Schaeuble had called for support for the deal, saying: “The agreement tries to find a better solution for a situation which is unsatisfactory.”


But Norbert Walter-Borjans, of the main opposition Social Democrats, told the Bundesrat it was a deal which made “honest taxpayers feel like fools”.


Swiss Finance Minister Eveline Widmer-Schlumpf said her government remained “committed to a successful ratification”.


And the Swiss Bankers Association said in a statement: “The German upper house has missed a major opportunity to reach a fair, optimum and sustainable solution for all parties to definitively settle the bilateral tax issues.”


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HP says products may have been sold to Syria by others












(Reuters) – Hewlett Packard Co said in a letter made public on Friday that its products could have been delivered to Syria through resellers or distributors, but the world’s largest PC maker affirmed it did not sell directly to the country.


The letter was a response to a request from the U.S. Securities and Exchange Commission‘s Office of Global Security Risk that asked whether HP’s products were sold in countries where they would be subject to U.S. sanctions.












“We are aware of November 2011 news reports that your equipment was installed by the Italian company, Area SpA, in Syria as part of a nationwide surveillance and tracking system designed to monitor people in that country,” the SEC wrote in its request.


“Please describe to us the nature, duration, and extent of your past, current, and anticipated contacts with Syria and Iran, whether through subsidiaries, distributors, resellers, vendors, retailers, or other direct or indirect arrangements.”


In a letter dated October 9, HP said it had not authorized the sale of products to Syria.


Instead, HP said the Italian surveillance company had likely obtained its products from an HP partner that was unaware of their ultimate destination.


In another October 9 letter to the agency, HP said it ended its contract with Area SpA in April.


Calls to HP seeking further comment were unanswered as were calls to Area SpA.


HP’s overseas subsidiaries ended sales of printers and related supplies to third-party distributors and resellers with customers in Iran in early 2009, the company wrote.


But because its products are often sold by others through indirect channels without its knowledge or consent “it is always possible that products may be diverted to Iran or Syria after being sold to channel partners, such as distributors and resellers,” HP said.


Reuters has documented how banned computer equipment from U.S. companies has made its way to Iran’s largest telecommunications company through China-based ZTE.


Networking equipment maker Cisco Systems Inc has since cut its ties to ZTE.


HP said in both letters that it would continue to work with ZTE, but it had conducted an internal investigation relating to an alleged sale of its products to MTN Irancell, Iran’s second largest mobile carrier.


The company was also asked about EDS – an IT outsourcing company that HP bought in 2008 – and any activity in Iran, Syria and Sudan.


HP said it had the same policy regarding Sudan as it did on sales to Iran or Syria.


HP is eager to avoid more negative publicity after surprising the market on Tuesday with an $ 8.8 billion write-down on its $ 11.1 billion acquisition of software group Autonomy, accusing the British company of improper accounting to inflate sales.


Autonomy has denied any wrongdoing.


(Reporting by Nicola Leske in New York. Editing by Leslie Gevirtz and Andre Grenon)


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Vampires, 007 may set record Thanksgiving sales












LOS ANGELES (Reuters) – The teen vampire movie “Twilight Saga: Breaking Dawn – Part 2″ continued to lure huge audiences, siphoning off $ 12.8 million in Wednesday night showings in what could fuel a record box office haul for the five-day Thanksgiving Day holiday.


The final film in the “Twilight” series, collected $ 141.3 million last weekend for the industry’s eighth largest opening weekend. On Wednesday it combined with the Daniel CraigJames Bond” film “Skyfall” to lead a slate of films that generated $ 44.3 million in total U.S. and Canadian ticket sales for the day, according to unofficial data from Hollywood.com’s box office division.












That’s 20 percent ahead of last year’s take for the Wednesday before Thanksgiving and, if the pace holds, would put Hollywood on a path to a $ 278 million holiday weekend, according to Hollywood.com estimates. The 2009 holiday weekend record of $ 273 million included “The Twilight Saga: New Moon” and the football flick, “The Blind Side.”


Hollywood traditionally opens its largest Thanksgiving weekend films on Wednesday, when schools are closed before the Thursday holiday.


“Skyfall,” the 23rd film in the “James Bond” series about the exploits of a British spy, collected $ 7.4 million in Wednesday showings.


Dreamworks Animation’s “Rise of the Guardians,” featuring the voices of Chris Pine and Alec Baldwin in a story about the Tooth Fairy, Easter Bunny and other childhood characters that save the world, opened with $ 4.85 million in Wednesday sales.


“Twilight” and “Skyfall” each easily appear headed to more than $ 200 million in box office sales. “Skyfall,” released by Sony Pictures in association with MGM, has generated more than $ 178 million so far in domestic ticket sales through Wednesday, already making it the 10th biggest selling film of 2012.


“Twilight,” starring Kristen Stewart, Robert Pattinson and Taylor Lautner, has totaled $ 175.5 million through Wednesday in the U.S. and Canada, according to the Hollywood.com unofficial tally. It was released by Lionsgate Entertainment.


(Reporting By Ronald Grover; Editing by Sandra Maler)


Movies News Headlines – Yahoo! News


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First Person: Unemployed, Disabled and Hungry for Work












Five million Americans are among the long-term unemployed–those without a job for 27 weeks or longer–according to the Bureau of Labor Statistics. Another 7.3 million are looking for work, while the unemployment rate sits at 7.9 percent. Numbers aside, individual stories illustrate how America is affected. To see how joblessness hits home, Yahoo News asked unemployed workers to share their job-hunting stories. Here’s one.


FIRST PERSON | I am 40 and live in Racine, Wis. I have been unemployed since I was 33. I try to find work, but I’ve been disabled since 27, and I do not collect Social Security or other income. On job applications, when I am asked if I have any disabilities, I answer yes.












I have even tried to travel to different states for employment. I am seeking employment where I can. I have tried Lowe’s, Home Depot and other similar stores. All I get are letters saying I do not qualify for employment.


By trade, I am a tattoo artist, a job I have been very good at until I became disabled. I have shoulder impingement syndrome, which consists of some of the following: torn ligaments, torn tendons, bone spurs, bursitis and arthritis.


And constant pain. I feel the weather. I hardly sleep. I wish I could be somewhere else, as it is hard on my mind to deal with on a daily basis.


Still, I try to find work where I can in this tough economy, and I am on several lists to be called and never have been called to date.


I am too proud to try to get Social Security. I cannot even afford insurance to get my condition fixed. I even have applied for local state insurance to get the problem resolved so I can work again, always with no luck. So I have remained unemployed now for over 10 years and going.


I injured myself, and I am not able to lift more than 10 pounds at a time or stand or sit for long periods of time.


I just want a job so I can try to cover the medical expenses myself since I cannot get help. Surgery costs are around $ 18,000, which sounds pretty reasonable to me.


I am no stranger to hard work. Since 12, I cut grass, shoveled snow, painted houses and fences, swept chimneys, worked in heat treatment plants with dirt and oil, worked in the casting of hot metals, laid brick, made bathroom sinks, swept floors in factories, did drill-press work, sanding work, and worked at fast food places.


I do not lie to get jobs or hid my injury. I do want to work, but I worry now that my disability will mean I won’t be hired by companies because they’re afraid it will come back on them and their company.


I cannot afford private insurance as I do not have steady income. Now I find whatever I can do to reach my goal of paying for my own surgery.


It is a sad world when you live in pain, day in and day out, and you want and need to find work.


Health News Headlines – Yahoo! News


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Wall St Week Ahead: Political wrangling to pinch market’s nerves












NEW YORK (Reuters) – Volatility is the name of this game.


With the S&P 500 above 1,400 following five days of gains, traders will be hard pressed not to cash in on the advance at the first sign of trouble during negotiations over tax hikes and spending cuts that resume next week in Washington.












President Barack Obama and U.S. congressional leaders are expected to discuss ways to reduce the budget deficit and avoid the “fiscal cliff” of automatic tax increases and spending cuts in 2013 that could tip the economy into recession.


As politicians make their case, markets could react with wild swings.


The CBOE Volatility Index <.VIX>, known as the VIX, Wall Street‘s favorite barometer of market anxiety that usually moves in an inverse relationship with the S&P 500, is in a long-term decline with its 200-day moving average at its lowest in five years. The VIX could spike if dealings in Washington begin to stall.


“If the fiscal cliff happens, a lot of major assets will be down on a short-term basis because of the fear factor and the chaos factor,” said Yu-Dee Chang, chief trader and sole principal of ACE Investments in Virginia.


“So whatever you are in, you’re going to lose some money unless you go long the VIX and short the market. The ‘upside risk’ there is some kind of grand bargain, and then the market goes crazy.”


He set the chances of the economy going over the cliff at only about 5 percent.


Many in the market agree there will be some sort of agreement that will fuel a rally, but the road there will be full of political landmines as Democrats and Republicans dig in on positions defended during the recent election.


Liberals want tax increases on the wealthiest Americans while protecting progressive advances in healthcare, while conservatives make a case for deep cuts in programs for the poor and a widening of the tax base to raise revenues without lifting tax rates.


“Both parties will raise the stakes and the pressure on the opposing side, so the market is going to feel much more concerned,” said Tim Leach, chief investment officer of U.S. Bank Wealth Management in San Francisco.


“The administration feels really confident at this point, or a little more than the Republican side of Congress may feel,” he said. “But it’s still a balanced-power Congress so neither side can feel that they can act with impunity.”


THE MIDDLE EAST AND EUROPE


Tension in the Middle East and unresolved talks in Europe over aid for Greece could add to the uncertainty and volatility on Wall Street could surge, analysts say.


An Egypt-brokered ceasefire between Israel and Hamas came into force late on Wednesday after a week of conflict, but it was broken with the shooting of a Palestinian man by Israeli soldiers, according to Palestine’s foreign minister.


Buoyed by accolades from around the world for mediating the truce, Egyptian President Mohamed Mursi assumed sweeping powers, angering his opponents and prompting violent clashes in central Cairo and other cities on Friday.


“Those kinds of potential large-scale conflicts can certainly overwhelm some of the fundamental data here at home,” said U.S. Bank’s Leach.


“We are trying to keep in mind the idea that there are a lot of factors that are probably going to contribute to higher volatility.”


On a brighter note for markets, Greece’s finance minister said the International Monetary Fund has relaxed its debt-cutting target for Greece and a gap of only $ 13 billion remains to be filled for a vital aid installment to be paid.


Still, a deal has not been struck, and Greece is increasingly frustrated at its lenders, still squabbling over a deal to unlock fresh aid even though Athens has pushed through unpopular austerity cuts.


HOUSING DATA COULD CONFIRM RECOVERY


Next week is heavy on economic data, especially on the housing front. Some of the numbers have been affected by Superstorm Sandy, which hit the U.S. East Coast more than three weeks ago, killing more than 100 people in the United States alone and leaving billions of dollars in damages.


The housing data, though, could continue to confirm a rebound in the sector that is seen as a necessary step to unlock spending and lower the stubbornly high unemployment rate.


Tuesday’s S&P/Case-Shiller home price index for September is expected to show the eighth straight month of increases, extending the longest continuous string of gains since prices were boosted by a homebuyer tax credit in 2009 and 2010.


New home sales for October, due on Wednesday, and October pending home sales data, due on Thursday, are also expected to show a stronger housing market.


Other data highlights next week include durable goods orders for October and consumer confidence for November on Tuesday and the Chicago Purchasing Managers Index on Friday.


At Friday’s close, the S&P 500 wrapped up its second-best week of the year with a 3.6 percent gain. Encouraging economic data next week could confirm that regardless of the ups and downs that the fiscal cliff could bring, the market’s fundamentals are solid.


Jeff Morris, head of U.S. equities at Standard Life Investments in Boston, said that “it’s kind of noise here” in terms of whether the market has spent “a few days up or down. It has made some solid gains over the course of the year as the housing recovery has come into view, and that’s what’s underpinning the market at these levels.


“I would caution against reading too much into the next few days.”


(Wall St Week Ahead runs every Friday. Questions or comments on this column can be emailed to: rodrigo.campos(at)thomsonreuters.com)


(Reporting by Rodrigo Campos; Editing by Tim Dobbyn and Jan Paschal)


Economy News Headlines – Yahoo! News


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Beijing’s S. China Sea rivals protest passport map












TAIPEI, Taiwan (AP) — China has enraged several neighbors with a few dashes on a map, printed in its newly revised passports that show it staking its claim on the entire South China Sea and even Taiwan.


Inside the passports, an outline of China printed in the upper left corner includes Taiwan and the sea, hemmed in by the dashes. The change highlights China’s longstanding claim on the South China Sea in its entirety, though parts of the waters also are claimed by the Philippines, Vietnam, Taiwan, Brunei and Malaysia.












China’s official maps have long included Taiwan and the South China Sea as Chinese territory, but the act of including them in its passports could be seen as a provocation since it would require other nations to tacitly endorse those claims by affixing their official seals to the documents.


Ruling party and opposition lawmakers alike condemned the map in Taiwan, a self-governed island that split from China after a civil war in 1949. They said it could harm the warming ties the historic rivals have enjoyed since Ma Ying-jeou became president 4 1/2 years ago.


“This is total ignorance of reality and only provokes disputes,” said Taiwan’s Mainland Affairs Council, the Cabinet-level body responsible for ties with Beijing. The council said the government cannot accept the map.


Philippine Foreign Secretary Albert del Rosario told reporters in Manila that he sent a note to the Chinese Embassy that his country “strongly protests” the image. He said China’s claims include an area that is “clearly part of the Philippines’ territory and maritime domain.”


The Vietnamese government said it had also sent a diplomatic note to the Chinese Embassy in Hanoi, demanding that Beijing remove the “erroneous content” printed in the passport.


In Beijing, the Foreign Ministry said the new passport was issued based on international standards. China began issuing new versions of its passports to include electronic chips on May 15, though criticism cropped up only this week.


“The design of this type of passports is not directed against any particular country,” Chinese Foreign Ministry spokeswoman Hua Chunying said at a daily media briefing Friday. “We hope the relevant countries can calmly treat it with rationality and restraint so that the normal visits by the Chinese and foreigners will not be unnecessarily interfered with.”


It’s unclear whether China’s South China Sea neighbors will respond in any way beyond protesting to Beijing. China, in a territorial dispute with India, once stapled visas into passports to avoid stamping them.


“Vietnam reserves the right to carry out necessary measures suitable to Vietnamese law, international law and practices toward such passports,” Vietnamese foreign ministry spokesman Luong Thanh Nghi said.


Taiwan does not recognize China’s passports in any case; Chinese visitors to the island have special travel documents.


China maintains it has ancient claims to all of the South China Sea, despite much of it being within the exclusive economic zones of Southeast Asian neighbors. The islands and waters are potentially rich in oil and gas.


There are concerns that the disputes could escalate into violence. China and the Philippines had a tense maritime standoff at a shoal west of the main Philippine island of Luzon early this year.


The United States, which has said it takes no sides in the territorial spats but that it considers ensuring safe maritime traffic in the waters to be in its national interest, has backed a call for a “code of conduct” to prevent clashes in the disputed territories. But it remains unclear if and when China will sit down with rival claimants to draft such a legally binding nonaggression pact.


The Philippines, Brunei, Malaysia and Vietnam are scheduled to meet Dec. 12 to discuss claims in the South China Sea and the role of China.


___


Associated Press writers Oliver Teves in Manila, Philippines, Chris Brummitt in Hanoi, Vietnam, and researcher Zhao Liang in Beijing contributed to this report.


Asia News Headlines – Yahoo! News


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