Monday, November 30, 2009
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Thursday, June 4, 2009
Rival Messages as Obama Lands in the Mideast
RIYADH, Saudi Arabia — Aiming to repair the American relationship with the Muslim world, President Obama was greeted on Wednesday with reminders of the vast gulfs his Cairo speech must bridge, as voices as disparate as Al Qaeda’s and the Israeli government’s competed to shape how Mr. Obama’s message would be heard.
In a new audiotape, Osama bin Laden condemned Mr. Obama for planting what he called new seeds of “hatred and vengeance” among Muslims, while in Jerusalem, senior Israeli officials complained that Mr. Obama was rewriting old understandings by taking a harder line against new Israeli settlements. [Pages A6 and A14.]
The speech that Mr. Obama is to deliver Thursday in Cairo is intended to make good on a two-year-old promise to use a major Muslim capital as the scene for a major address. Mr. Obama has pledged a new face and tone to relations between the United States and the Muslim world. But whether his expected call for America and Islam to come together can trump Mr. bin Laden’s call to arms is a question that could define Mr. Obama’s presidency in the years to come.
Aware of the high expectations for the speech, Mr. Obama and his advisers have spent months soliciting opinion and advice from a wide variety of experts, from men of the cloth to Arab businessmen to Persian scholars. On his first stop in the Middle East, Mr. Obama spent Wednesday afternoon with King Abdullah of Saudi Arabia, home to Islam’s two holiest sites, and declared on arrival, “I thought it was very important to come to the place where Islam began.”
In a bid to make sure that Mr. Obama’s message will be heard, particularly among young people, the White House has mounted an unusually aggressive campaign, including a Web site created in Arabic, Persian, Urdu and English where people outside the United States can sign up to receive the speech via text message. The State Department is to translate the speech into at least 13 languages.
Mr. Obama’s advisers nevertheless sought to lower expectations. “There’s been an undeniable breach between the American and Islamic world,” said David Axelrod, a senior adviser to the president.
“That breach has been years in the making. It is not going to be reversed with one speech. It’s not going to be reversed, perhaps, in one administration.”
The speech will cover a wide swath of territory, advisers said, beginning by challenging the misperceptions that Americans may hold about Muslims and that Muslims may hold about Americans. Mr. Obama will touch upon violent extremism, the threat of a nuclear Iran and the need for the expansion of human rights and democracy.
But even on Wednesday night, as Mr. Obama headed to his quarters at Al Janadriyah Farm, where he is a guest of the king, he told his advisers that he had more thinking to do on the speech and that he would deliver a final version by dawn.
As the son and grandson of Muslims, Mr. Obama has had years to reflect on America’s troubled ties with the Islamic world. But the path to the Cairo address, as described by some advisers, also offers a case study in the president’s approach to a delicate issue, one in which he reached out to dozens of people on how to shape his message.
Before his trip, he and his aides talked to American chief executives of major companies who are Muslims. He read unsolicited essays that were sent to the White House. And he sought out not only Muslims, but also Jews and people of other faiths and experts across academia.
In recent weeks, as advisers presented him with drafts of the speech, Mr. Obama would end sessions with a question. “Are you making sure that we are hearing a Muslim voice?” he would say, according to participants.
Among the Muslim business leaders consulted during the preparations were: S. A. Ibrahim of the Radian Group; Tariq Malhance, the president of UIB Capital; Hultam Olayan of the Olayan America Corporation; and Noosheen Hashemi, a former vice president at Oracle.
On the Friday afternoon before the Memorial Day weekend, White House officials hosted a group of Muslim and other foreign policy scholars to discuss what points Mr. Obama should touch on. The meeting was organized by Michael McFaul, the White House senior adviser for Russia, who arranged it under his purview as a senior democracy adviser. Other White House officials in the 90-minute meeting included the National Security Council officials Mara Rudman, Dan Shapiro, Denis McDonough and Ben Rhodes.
On the other side of the table were Karim Sadjadpour, an Iranian-American expert from the Carnegie Endowment, Ghaith Al-Omari, a former Palestinian peace negotiator, Vali Nasr, another Iran expert who is soon to join the Obama administration, and Shibley Telhami, a senior fellow at the Saban Center for Middle East Policy, who described for the assembled officials the results of polling in the Middle East about attitudes toward the United States, according to people in the meeting.
Even as Mr. Obama flew toward Saudi Arabia early Wednesday, he sat on Air Force One, long after most of his advisers had fallen asleep, working with pen in hand through page after page of the speech.
On the first of a five-day trip through four countries, Mr. Obama was treading carefully, with every move being carefully watched in the Middle East. He exchanged a light embrace and a double-kiss with King Abdullah, but the president did not bow as he did at their first meeting in London this year in a gesture that drew criticism.
“I also want to express my best wishes to the friendly American people who are represented by a distinguished man who deserves to be in this position,” King Abdullah said, presenting the president with a large gold medallion known as the King Abdul Aziz Collar.
“Shoukran,” Mr. Obama replied, which in Arabic means “thank you.”
Jeff Zeleny reported from Riyadh, and Helene Cooper from Washington.
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Wednesday, May 20, 2009
Obama won't oppose ruling weakening 'don't ask'
Bob Egelko, Chronicle Staff Writer
(05-19) 20:19 PDT -- The Obama administration, criticized by gay rights advocates for not following through on a campaign promise to repeal the "don't ask, don't tell" policy on military service, has taken a quiet step to allow a federal court in San Francisco to limit enforcement of the policy.
Without fanfare, the Justice Department told congressional leaders last month that it would not seek Supreme Court review of a May 2008 ruling by the Ninth U.S. Circuit Court of Appeals. The ruling cast doubt on the constitutionality of discharging gay and lesbian soldiers from the military for revealing their sexual orientation and required military officials to justify each dismissal.
President George W. Bush's administration had asked the court to reconsider the ruling but fell short of the majority vote needed for a new hearing in December. The Obama administration was given extensions of time to file a further appeal but let the deadline expire May 3.
The decision not to appeal was made "after extensive consultation with the Department of Defense," Attorney General Eric Holder said in the letter to Congress. He said the Justice Department will defend the policy when the case returns to a trial court to determine whether an Air Force officer should be discharged because of a lesbian relationship. In the meantime, the ruling is binding on federal courts in California and eight other Western states covered by the nation's largest appellate circuit.
"This decision makes it significantly easier to strike down at least the application of 'don't ask, don't tell' in many if not most cases," gay rights attorney Jon Davidson, legal director of Lambda Legal, said Tuesday. Davidson filed arguments supporting the Air Force officer in the case.
"We're happy that this is not going forward to the Supreme Court at this point," Davidson said. He said many opponents of the policy would prefer to steer clear of the high court during a period of international tension when the justices are likely to defer to military decisions.
"Don't ask, don't tell," approved by Congress and President Bill Clinton in 1993, replaced a ban on gays in the military. It bars the armed services from asking members about their sexual orientation but requires the military to discharge those who acknowledge being gay or engage in homosexual activity. At least 12,500 gays and lesbians have been discharged since the policy took effect.
President Obama said during last year's campaign that gays and lesbians should be allowed to serve openly in the military. But he has not made the issue a priority, and Defense Secretary Robert Gates told an interviewer in late March that any change was "down the road a little bit."
White House spokesman Ben LaBolt said Tuesday that Obama still wants the policy repealed and is consulting with military officials to see that "this change is done in a sensible way that strengthens our armed forces and our national security."
But until Congress changes the law, LaBolt said, "the administration will continue to defend the statute" in court.
The appeals court ruling, the first of its kind in the nation, came in the case of Maj. Margaret Witt of Spokane, Wash., a decorated flight nurse, who was suspended without pay in 2004 and discharged in 2007 after the Air Force learned of her longtime relationship with a civilian woman.
In reinstating Witt's lawsuit challenging her discharge, the appeals court relied on its interpretation of the U.S. Supreme Court's 2003 ruling overturning state laws against gay sex.
That ruling established a new level of constitutional protection for gays and lesbians, the three-judge appellate panel said. It said courts can no longer accept the government's claim that all openly gay service members weaken the armed forces, and instead must require the Air Force to prove that discharging Witt would promote troop readiness or unit cohesion.
E-mail Bob Egelko at begelko@sfchronicle.com.
http://sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/05/20/MNBO17NEVG.DTL
This article appeared on page A - 7 of the San Francisco Chronicle
Tuesday, May 5, 2009
Washington - Obama Urges House To Pass Hate Crimes Bill Quickly, Vote Passed 249-175
The House is scheduled to vote this week on the Local Law Enforcement Hate Crimes Prevention Act (the Matthew Shepard Act), which would permit greater federal involvement in investigating hate crimes and expand the federal definition of such crimes to include those motivated by gender, sexual orientation, gender identity and disability.
Last night, President Obama issued a statement to urge the quick passing of the bill by the House this week:
"This week, the House of Representatives is expected to consider H.R. 1913, the Local Law Enforcement Hate Crimes Prevention Act of 2009. I urge members on both sides of the aisle to act on this important civil rights issue by passing this legislation to protect all of our citizens from violent acts of intolerance – legislation that will enhance civil rights protections, while also protecting our freedom of speech and association. I also urge the Senate to work with my Administration to finalize this bill and to take swift action." White House.
The bipartisan Senate bill is being carried by Democrat Ted Kennedy of Massachusetts and Republican Olympia Snowe of Maine. Other cosponsors include Democrat Patrick Leahy of Vermont, Republican Susan Collins of Maine, and Arlen Specter of Pennsylvania, who switched his affiliation Tuesday from Republican to Democrat.
U/D:
Hate-crimes legislation passes House
The U.S. House of Representatives passed the Local Law Enforcement Hate Crimes Prevention Act by a vote of 249-175.
Sunday, May 3, 2009
Ethanol test for Obama on climate change, science
WASHINGTON – President Barack Obama's commitment to take on climate change and put science over politics is about to be tested as his administration faces a politically sensitive question about the widespread use of ethanol: Does it help or hurt the fight against global warming?
The Environmental Protection Agency is close to proposing ethanol standards. But two years ago, when Congress ordered a huge increase in ethanol use, lawmakers also told the agency to show that ethanol would produce less pollution linked to global warming than would gasoline.
So how will the EPA define greenhouse gas emissions from ethanol production and use? Given the political clout of farm interests, will the science conflict with the politics?
Environmentalists, citing various studies and scientific papers, say the agency must factor in more than just the direct, heat-trapping pollution from ethanol and its production. They also point to "indirect" impacts on global warming from worldwide changes in land use, including climate-threatening deforestation, as land is cleared to plant corn or other ethanol crops.
Ethanol manufacturers and agriculture interests contend the fallout from potential land use changes in the future, especially those outside the United States, have not been adequately proven or even quantified, and should not count when the EPA calculates ethanol's climate impact.
"It defies common sense that EPA would publish a proposed rule-making with harmful conclusions for biofuels based on incomplete science and inaccurate assumptions," complained Sen. Charles Grassley, R-Iowa.
He was one of 12 farm-state senators, both Democrats and Republicans, who wrote EPA Administrator Lisa Jackson in March, urging the agency to stick to assessing only the direct emissions.
Ethanol, which in the future may come from cellulosic sources such as switchgrass and wood chips, is promoted by its advocates as a "green" substitute for gasoline that will help the U.S. reduce its reliance on fossil fuels, especially foreign oil. That transition is a priority of the Obama White House.
In 2007, Congress ordered huge increases in ethanol use, requiring refiners to blend 20 billion gallons with gasoline by 2015 and a further expansion to 36 billion gallons a year by 2022.
Congress said any fuel produced in plants built after 2007 must emit 20 percent less in greenhouse gases than gasoline if it comes from corn, and 60 percent less if from cellulosic crops.
Meeting the direct emissions would not be a problem. But if indirect emissions from expected land use changes are included, ethanol probably would fail the test.
Nathaniel Greene, director of renewable energy policy at the Natural Resources Defense Council, an environmental advocacy group, said that wouldn't mean the end of ethanol.
Ethanol from existing production facilities is grandfathered and "there are ways to produce advanced ethanol's that would comply with the greenhouse thresholds," even using land use climate impacts if the industry chose to adopt them, Greene said.
But farm interests and their allies in Congress are pushing to get the EPA to at least postpone any consideration of the land-use impacts issue, arguing the science surrounding the issue is uncertain.
The senators' letter said that an overreaching regulation by EPA on ethanol's link to climate change "could seriously harm our U.S. biofuels growth strategy by introducing uncertainty and discouraging future investments."
Environmentalists say there have been enough studies on the indirect impact of ethanol on greenhouse pollution to justify the science.
Ignoring the indirect impacts "will undermine the environmental benefits" of the renewable fuels program "and set a poor precedent for any future policies attempting to reduce global warming pollution," 17 environmental group wrote Jackson in response to the senator's plea.
Greene said the EPA's handling of the ethanol rule will be a "a test of our ability to follow sound science" even when it conflicts with the interests of powerful interests.
The environmental organizations noted that Obama has "vowed to make the U.S. a leader on climate change" and put science over politics, and "now is the time to uphold those pledges."
EPA spokeswoman Andora Andy declined to say when an agency proposal — a holdover issue from the Bush administration — would be issued. Interest groups on both sides of the debate said it could come in days. The White House Office of Management and Budget concluded its review of the EPA proposal last week.
___
On the Net:
Environmental Protection Agency: http://www.epa.gov
Senators' letter: http://tinyurl.com/cwd69f
Natural Resources Defense Council: http://www.nrdc.org/
Friday, May 1, 2009
Obama Vows ‘Independent’ Replacement for Souter

May 2, 2009
endit
Tuesday, April 28, 2009
He makes the boys SWOON.
As President Obama began addressing Federal Bureau of Investigation employees at FBI headquarters Tuesday, the crowd went wild with applause — and one FBI worker fainted.
“Did somebody faint? Do we have an EMT here?” Obama asked, pausing in his speech.
“Give him a little space,”
Specter To Switch Parties

If Al Franken prevails in his ongoing court case in Minnesota and Mr. Specter begins caucusing with Democrats, Democrats would have 60 votes and the ability to deny Republicans the chance to stall legislation. Mr. Specter was one of only three Republicans to support President Obama’s economic recovery legislation.
Mr. Specter faced a primary challenge from former Republican Congressman Pat Toomey and polls showed him trailing Mr. Toomey. But he had previously resisted overtures to join the Democrats.
He said he has experienced a change of heart since the response to his vote for the stimulus legislation.
Democrats called the decision a game-changer. “It helps on everything,” said Senator Dianne Feinstein, Democrat of California. “This is a substantial change.”
The highs and lows of Obama's first 100 days

Ever since FDR, the judging of the president's first 100 days is a time-honored tradition, something akin to a teacher issuing a report card. Or a fraternity hazing the new pledge.
Luckily for President Obama, there's only one "First 100 Days." But unluckily for President Obama, the stakes are much higher: In his hands lies the future of Wall Street, two wars and a recession. Here's a look at the president's report card so far:
HIGHS
Domestic policy: During the election, much was made about then-Sen. Barack Obama's lack of experience. But President Obama hit the ground running: Just days after his inauguration, Obama issued a White House pay freeze, ordered the closure of Guantanamo Bay and signed his first bill into law.
Obama then pushed through a massive $787 billion stimulus bill, ended the ban on stem-cell research, and lifted travel limits to Cuba. Oh, and a few weeks ago, he authorized the use of U.S. force against Somali pirates holding an American sea captain hostage.
Foreign policy: Depending on whom you ask, Obama's European trip for the G20, NATO and EU-US summits was either a successful first step toward "soft diplomacy," or as Karl Rove dubbed it, the "President's Apology Tour."
In a meeting with British Prime Minister Gordon Brown, Obama set the tone for his trip, telling Brown that he came to Europe "to listen and not to lecture." By reaching out, Politico declared that Obama made it clear to the world that "the Bush era of foreign policy is over." In return, various heads of state lavished praise for the new U.S. president. A sampling:
- British Prime Minister Gordon Brown: "Your first 70 days in office have changed America, and you've changed America's relationship with the world."
- French President Nicholas Sarkozy: Called Obama a "U.S. president who wants to change the world and who understands that the world does not boil down to simply American frontiers and borders."
- Chinese President Hu Jintao: "Since President Obama took office, we have secured a good beginning in the growth of this relationship."
Back home, however, analysts were on the fence as to what Obama actually accomplished. The New York Times called the trip a "mixed bag," while Politico commented that Obama got "a warm embrace and a cold shoulder" from our NATO allies. The verdict? Not a solid "high," but since Obama was universally well-received, his trip falls into the "plus" column — for now.
The White House: So far, the Obama White House might be the most relaxed — and open — administration yet. Even after he was elected president, Obama was seen in Chicago, taking Michelle out for Valentine's Day dinner. In D.C., the president was seen sipping a beer courtside watching the Bulls play the Wizards.
It's definitely the most wired administration; Obama managed to keep his Blackberry and his weekly radio addresses are the first to be released as Web videos. In March, Obama became the first sitting president to appear on "The Tonight Show" and hosted the first virtual town hall at the White House.
And honestly — when was the last time the president and the secretary of state held a briefing meeting at a picnic table?
LOWS
Vetting nominees: But it hasn't been all roses and rainbows since inauguration day. No less than four nominees have been flagged for not paying taxes, including Treasury Secretary Timothy Geithner, despite what the administration called a "comprehensive" vetting form.
Geithner paid his overdue taxes and still got the job, but three nominees — Nancy Killefer, Tom Daschle and Bill Richardson ended up withdrawing their nominations.
Missteps, mixed messages: On the way to the White House, Obama earned the nickname "No-Drama Obama" for his famously disciplined campaign. But as of late, that famous discipline seems to be slipping. In March, when news of AIG bonuses became public, Obama waited several days before making an official statement. When it became known that the White House knew about the bonuses for almost a week, the story turned into "who knew what when" — and why Obama didn't say something sooner.
Things came to a head at a press conference at which CNN's Ed Henry asked the president why he waited so long to respond. Obama replied tersely, "It took us a couple of days because I like to know what I'm talking about before I speak." (Watch the clip here.) Afterward, Obama sought to limit the damage, going on a whirlwind media tour, appearing on "60 Minutes," "Jay Leno" and ESPN.
Obama's latest misstep — and one that may have the most lasting consequences — involves the investigation of detainee interrogations. On April 21, AP reported that Obama was open to a probe of the Bush-era detainee program. Days later, however, the White House declared Obama was opposed to a special commission to investigate detainee interrogations. But the president is still facing pressure from key Democratic lawmakers to establish a "truth commission" to probe abuses.
The divider: Yes, Obama has the high approval marks, but for someone who made bipartisanship a theme of his campaign, polls also show that Obama is "a polarizing figure in the mold of Bush," says RealClearPolitics. An ABC/Washington Post poll shows 93 percent of Democrats support his actions, while only 36 percent of Republicans do.
Pew Research Center finds that "Barack Obama has the most polarized early job approval ratings of any president in the past four decades." AP reports that for every step toward bipartisanship by the White House, there has been one step back: Obama put two Republicans in his Cabinet, but when Republicans pushed for more tax cuts in the stimulus package, Obama replied, "I won. So, I think on that one, I trump you."
According to David Axelrod, Obama's senior adviser, the 100-day review is the "journalistic equivalent of the Hallmark holiday." But perhaps because of Wall Street, two wars and a recession, these 100 days do matter, because now more than ever, people need the change Obama promised.
- Lili Ladaga
Yahoo! News bloggers compile the best news content from our providers and scour the Web for the most interesting news stories so you don't have to.**
Monday, March 2, 2009
There's always one guy...

NBA fan exercises his constitutional right to trash-talk the president: Wizards supporter Miles Rawls good-naturedly razzes President Obama, a Bulls fan, at the Chicago-Washington game in the nation's capital. The Bulls are losing.
Monday, February 23, 2009
Monday, February 16, 2009
Friday, January 23, 2009
Obama names an acting FERC chief
Obama's first speech as US president

Millions of people gathered in Washington to see the inauguration of the 44th president of the United States and first ever African-American leader.
In his inaugural address President Obama said what was needed now was, "a new era of responsibility" in which every American had duties to themselves, their nation, and the world.
The wired president: Obama creates an e-mail trail

Obama's spy-proof phone

Obama to speak to joint session of Congress
Obama says stimulus deal on track

"Yes we wrote the bill, yes we won the election," said Democrats leader and House Speak Nancy Pelosi.
Obama appoints key hotspot envoys

All overseas CIA detention centres for terror suspects are to close as well, Mr Obama ordered.
Mr Mitchell would head to the Middle East as soon as possible to shore up the fragile truce between Israel and Hamas in Gaza.
Richard Holbrooke, a former ambassador to the UN and the architect of the Dayton Accord that ended the war in the Balkans, is to co-ordinate US policy in Afghanistan and Pakistan.
Some music for inauguration was taped, not live

Unless you were one of the fortunate few sitting within earshot of the celebrated performers, what you heard was a recording made two days earlier.
Cellist Yo-Yo Ma, violinist Itzhak Perlman, pianist Gabriela Montero and clarinetist Anthony McGill made the decision a day before Tuesday's inauguration to use a previously recorded audio tape for the broadcast of the ceremonies.
Carole Florman, a spokeswoman for the Joint Congressional Committee on Inaugural Ceremonies, said the weather was too cold for the instruments to stay in tune.
"They were very insistent on playing live until it became clear that it would be too cold," said Florman in a telephone interview Thursday night.
People sitting nearby could hear the musicians play "Air and Simple Gifts", written for the inauguration by John Williams, but their instruments were not amplified.
"It would have been a disaster if we had done it any other way," Perlman told The New York Times, which first reported that the music was taped on its Web site Thursday. "This occasion's got to be perfect. You can't have any slip-ups."
The Marine Band, the youth choruses and the Navy Band Sea Chanters performed live, Florman said, although Aretha Franklin was accompanied by taped music and voices.
Florman said all the acts "laid down tape" before Tuesday's inauguration. When they did their sound checks on Monday, all but the quartet made the decision to have their live performances broadcast.
The temperature hovered around 30 for the ceremony on the Capitol steps, too cold for McGill's clarinet, Ma's cello or Perlman's violin to offer true pitch. But the cold played havoc with the piano, which can't hold tune below 55 degrees for more than two hours, Florman said. The group played at 11:43 a.m., and guests seated near them could hear them as well as the tape made two days earlier. Guests seated farther away, the crowds that thronged the National Mall, and the millions who watched around the world heard the taped version of Williams' piece.
"This isn't Milli Vanilli," Florman insisted, referring to the late 1980s group stripped of a Grammy for lip-syncing. "They had to perform in such cold weather, the instruments couldn't possibly be in tune. They were able to play in sync with the tape. It's not unusual."
(This version CORRECTS spelling of the first name "Gabriela.")
Copyright © 2009 The Associated Press.
Obama telephones congratulations to Gillibrand
At Friday's briefing for the media, White House press secretary Robert Gibbs said Obama had spoken with the new senator.
Gibbs read a statement from Obama, in which he said New York Gov. David Paterson made a wonderful choice in tapping Gillibrand to fill the seat vacated by Hillary Rodham Clinton. Clinton is now serving as secretary of state.
Obama said Gillibrand has been known during her career as a strong voice for transparency and reform in government, and that she has "the integrity, character and dedication to public service to help us achieve our greatest goals."
Obama phones British, Canadian and Saudi leaders
White House press secretary Robert Gibbs said Friday that Obama had talked that morning with Canadian Prime Minister Stephen Harper, British Prime Minster Gordon Brown and Saudi King Abdullah.
Obama plans to make his first international trip as president to Canada, a key ally that shares a border with the United States. The trip will keep with tradition, with most U.S. president making Canada their first stop.
Britain and Saudi Arabia also are longtime allies of the United States.
Earlier this week, Obama talked with Israeli, Palestinian, Egyptian and Jordanian leaders about the cease-fire between Israel and Hamas in Gaza.
Copyright © 2009 The Associated Press.
Geithner signals tougher stance on China

WASHINGTON – Treasury Secretary-designate Timothy Geithner says President Barack Obama believes China is "manipulating" its currency, a declaration that American manufacturers have long sought in their efforts to combat America's soaring trade deficit with China.
However, Geithner also suggested that now might not be the right time to brand China as a currency manipulator under U.S. trade law, a designation that would trigger negotiations between the two countries and could result in U.S. economic sanctions against China.
"President Obama — backed by the conclusions of a broad range of economists — believes that China is manipulating its currency," Geithner wrote in answer to questions submitted to him by members of the Senate Finance Committee.
"President Obama has pledged as president to use aggressively all the diplomatic avenues open to him to seek change in China's currency," Geithner said.
He noted that while in the Senate, Obama sponsored legislation along with other senators that would overhaul the process for determining what countries are manipulating their currency to gain trade advantages in competition with the United States. That legislation would have authorized a new enforcement process "so countries like China cannot continue to get a free pass for undermining fair trade principles," Geithner said.
Geithner's comments raise the possibility that the Obama administration will take a tougher line with China than former President George W. Bush did. The previous administration refused to cite China as a currency manipulator in a report that Congress requires the Treasury Department to prepare twice a year.
Instead, former Treasury Secretary Henry Paulson insisted that the best way to get China to revalue its currency was through diplomatic engagement. Paulson began the Strategic Economic Dialogue, high-level discussions that have been held twice a year starting in late 2006.
During this process, China did allow the value of its currency to rise by 21 percent. But American manufacturers say that the Chinese yuan is still significantly undervalued, making Chinese goods cheaper for U.S. consumers and American products more expensive in China.
If Paulson had labeled China as a currency manipulator, that designation would have launched negotiations between the two countries and if that process had failed, the United States could have imposed trade sanctions on Chinese imports.
While Geithner did state that Obama believes China is manipulating its currency, he said the new administration would consider a number of factors in deciding how to proceed.
"The question is how and when to broach the subject in order to do more good than harm," Geithner wrote. "The new economic team will force an integrated strategy on how best to achieve currency realignment in the current economic environment."
In response to another question on China's currency, Geithner noted that China's economy is slowing at present as a result of the global downturn which has cut into China's ability to export.
"Because China accounts for such a large fraction of the world economy, a further slowdown in China would lead to a substantial fall in world growth and demand for U.S. exports and delay recovery from the crisis," Geithner said. "Therefore, the immediate goal should be for us to convince China to adopt a more aggressive stimulus package as we do our part to try to pass a stimulus package here at home."
Under U.S. trade law, the first currency report that the new administration must submit to Congress will be due in April although past administrations have often missed the deadlines.
Frank Vargo, vice president for international affairs at the National Association of Manufacturers, said Friday that the new administration's acknowledgement that China was engaging in currency manipulation represented an important change but that it needed to be followed with actions that will get China to resume allowing its currency to rise in value.
Vargo said China's currency appreciation came to a halt last summer as China became more worried about what a slowing world economy was doing to its exports.
"The National Association of Manufacturers has long thought it was necessary for the U.S. government to tell the Chinese government that we know they are manipulating their currency.
The previous administration always dodged that," Vargo said. "Until you acknowledge the problem, you can't go ahead and get a good solution."
In response to another question on China, Geithner did not commit specifically to continuing the current Strategic Economic Dialogue talks but he said the administration wanted a "deep engagement" with China.
Geithner's nomination to be treasury secretary was approved by the Finance Committee on an 18-5 vote on Thursday despite unhappiness on the part of many senators over mistakes
Geithner made on his tax returns earlier in the decade.
The full Senate is expected to take up Geithner's nomination on Monday and he is expected to win approval at that time with supporters saying that the current economic crisis requires quick approval of someone with Geithner's qualifications.
Geithner is currently head of the New York Federal Reserve Bank. In that post, he was a key participant in the financial rescue decisions made by the Bush administration and Federal Reserve Chairman Ben Bernanke.
Copyright © 2009 The Associated Press.
Officials: Obama to reverse abortion policy

WASHINGTON – In a long-expected move, President Barack Obama plans to sign an executive order ending the ban on federal funds for international groups that perform abortions or provide information on the option, officials told The Associated Press on Friday.
Liberal groups welcomed the decision while abortion rights foes criticized the president. Known as the "Mexico City policy," the ban has been reinstated and then reversed by Republican and Democratic presidents since GOP President Ronald Reagan established it in 1984. President Bill Clinton ended the ban in 1993, but President George W. Bush re-instituted it in 2001 as one of his first acts in office.
The policy bans U.S. taxpayer money, usually in the form of U.S. Agency for International Development funds, from going to international family planning groups that either offer abortions or provide information, counseling or referrals about abortion. It is also known as the "global gag rule," because it prohibits taxpayer funding for groups that lobby to legalize abortion or promote it as a family planning method.
The Democratic official and senior U.S. official who disclosed the plans did so on the condition of anonymity because they were not authorized to pre-empt Obama's announcement.
Obama was expected to sign the executive order at a low-key event, one day after the 36th anniversary of the landmark Supreme Court ruling in Roe v. Wade that legalized abortion.
The move was not a surprise as both Obama and Secretary of State Hillary Rodham Clinton, who will oversee foreign aid, had promised to do away with the gag rule during the presidential campaign. Clinton is to visit the U.S. Agency for International Development, through which much U.S. foreign aid is disbursed, later on Friday.
Obama has spent his first days in office systematically signing executive orders reversing Bush administration policies on issues ranging from foreign policy to government operations. But, save for ending the ban, Obama has largely refrained from wading into ideological issues, perhaps to avoid being tagged a traditional partisan from the outset after his campaign promises to change "business as usual" in the often partisan-gridlocked capital.
Rather, Obama has chosen to focus initially on issues in which there is consensus across the political spectrum and support from the public, such as closing the prison camp for suspected terrorists at Guantanamo Bay, Cuba, to making government documents more accessible.
In a move related to the lifting of the abortion ban, Obama also is expected to restore funding to the U.N. Population Fund (UNFPA) at his earliest opportunity, probably in the next budget. Both he and Clinton made this a campaign issue.
The Bush administration had barred U.S. money from going to the fund, contending that work in China supported a Chinese family planning policy of coercive abortion and involuntary sterilization. UNFPA has vehemently denied that it does.
Organizations that had pressed Obama to make the abortion-ban change were jubilant.
"Women's health has been severely impacted by the cutoff of assistance. President Obama's actions will help reduce the number of unintended pregnancies, abortions and women dying from high-risk pregnancies because they don't have access to family planning," said Tod Preston, a spokesman for Population Action International, an advocacy group.
Anti-abortion groups criticized the move.
"President Obama not long ago told the American people that he would support policies to reduce abortions, but today he is effectively guaranteeing more abortions by funding groups that promote abortion as a method of population control," said Douglas Johnson, legislative director of the National Right to Life Committee.
Copyright © 2009 The Associated Press.