Activists of the Indian right-wing Hindu organisation Shiv Sena burn a Chinese flag in protest against troops moving into Indian-controlled territory on April 25 (NARINDER NANU/AFP/Getty Images)
Rising tensions with Japan are evidently not enough to keep China busy. The People’s Liberation Army has now also pitched tents in a bit of disputed territory, controlled by India, creating an embarrassing security dilemma for the Delhi government. Official India’s initial reaction has been to play the incident down. I encountered an Indian diplomat in Beijing last week, who speculated that the whole thing was probably an initiative by an over-zealous local Chinese commander – and assured me that it would all be smoothed over. But that was five days ago, now – and the Chinese are still there.
As a result, the Indian government is increasingly open to charges of weakness – or even appeasement. Brahma Chellaney, one of India’s most hawkish commentators, fumes that “China is encroaching little by little on Indian land” and accuses the government of Manmohan Singh of “bending over backward at a time of aggression”. Read more
More on the Great Tax Race
♦ Luxembourg is set to share currently confidential information about multinationals’ bank accounts, showing how much it wants to shed its image as a tax haven at a time of a political and popular backlash against tax avoidance.
♦ One of the biggest hedge fund service businesses on the Cayman Islands has tried to block sweeping reforms to make the tax haven more transparent.
♦ Jeffrey Sachs writes about how austerity has exposed the threat of global tax havens: “In the new world of austerity following the 2008 crash… they are increasingly seen as a cancer on the global financial system that must be excised.”
The rest of the world
♦ Despite Dutch politics being roiled by waves of populist anger and anti-elitism, Willem-Alexander ascends to the throne amid an outpouring of popular enthusiasm – polls show support for preserving the Dutch monarchy running as high as 85 per cent.
♦ President Hamid Karzai acknowledges that the Central Intelligence Agency has been dropping off bags of cash at his office for a decade: “Not a big amount. A small amount, which has been used for various purposes.”
♦ Reuters takes a look through the confidential report prepared for the Cypriot central bank, which found that the Bank of Cyprus had been willing to invest in risky, high-yield Greek debt in its efforts to offset an erosion of its balance sheet from non-performing loans. The report also alleges that 28,000 files, containing emails from a crucial period during which the Bank of Cyprus spent billions of euros buying Greek bonds, were erased before investigators could copy them.
♦ A singer’s lament for Syria, broadcast on “Arab Idol”, has become a hit in the Arab world.
♦ Bangalore, once an advertisement for a new, confident India, is losing some of its sheen. Read more
♦ Martin Wolf argues that the UK industrial revolution shows the Reinhart-Rogoff thesis on debt is not always right.
♦ Frigide Barjot and her fellow protesters have taken the heat off Hollande as people take to the streets to protest over gay marriage rather than the state of the economy.
♦ The planting of sugar cane has exacerbated the effects of the worst drought in more than four decades in the Indian state of Maharashtra.
♦ Critics say that Nelson Mandela’s family members have been using his status for their own enrichment. Two of his grandchildren are involved in a US reality show called Being Mandela and his daughter has launched a wine business called House of Mandela.
♦ FT Alphaville take a typically irreverent look at the ‘tweet retreat’ in their Occupational Indifference series.
♦ The number of people in Britain receiving emergency food rations has more than doubled in the past year as inflation eroded incomes and government spending cuts have pushed hundreds of thousands into crisis.
♦ Jacob Heilbrunn at The National Interest examines Israel’s fraying image and the possibility that US interest in Israel’s fortune could wane: “if Israel remains stymied in dealing with the Palestinians… its predicament is likely to intensify. And the range of options for dealing with the country’s mounting problems is likely to expand toward more radical solutions.”
♦ Japanese drivers are getting televisions installed in the front of their cars. “Japanese law prohibits “staring” at a screen while driving, without saying anything about glancing at one.”
♦ The New York Times is debating the usefulness of Nato.
Chris Cook, the FT’s education correspondent, on how the WISE conference in Qatar showcased alternative attitudes towards learning and knowledge. Read more
Aung San Suu Kyi arriving in New Delhi. (AFP)
Aung San Suu Kyi, Myanmar’s opposition leader, gave an exceptionally interesting interview to the Hindu newspaper ahead of her trip on Tuesday to India, her first visit since she studied there as a schoolgirl nearly half a century ago.
The interview is worth reading in its entirety.
On whether she had ambitions to succeed Thein Sein as president after elections due in 2015, the 67-year-old recipient of the Nobel Peace Prize was pretty unequivocal.
“I’d be prepared to take over the position of president. Not so much because I want to be president of a country but because I want the president of the country to be elected through the will of the people.”
She added that she believes her party, the National League for Democracy, “has the people behind it” but made no reference to the recent divisions within it.
An important test of the irreversibility of reform, she said, would be the military’s willingness to change parts of the 2008 constitution that were undemocratic. This would include sections that guarantee the military one-quarter of parliamentary seats as well as a provision – aimed explicitly against her – that bars people married to foreigners from becoming leader. Such changes would need to be made in advance of the 2015 elections, she said. Read more