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WASHINGTON -- Financial systems in Asia appear well placed to handle the effects of the global financial market turbulence that broke out in July, said a report released by the International Monetary Fund on Friday.The report, Regional Economic Outlook: Asia and Pacific, explained that Asia was not at the epicenter of the recent turmoil, and markets and financial institutions in the region have been less affected to date than those in the United States and Europe."This reflects the relatively small direct exposure to US subprime mortgages and, more broadly, to leveraged and complex structured credit products, including by hedge funds," said the report.But it also warned that markets have begun to normalize somewhat at the time of this writing, although much uncertainty remains.The report expressed optimism about Asia's future economic performance, saying growth has been stronger than expected across much of the region, with domestic demand making an increasing contribution in a number of economies."China and India continued to lead the way, with high growth backed by strong investment, although the contribution of net exports to growth in China continues to rise," said the report."The pace of activity in the NIEs and ASEAN-5 remained solid, with strong investment in the former and strong consumption in the latter," the report added.The NIEs, or Newly Industrialized Economies, refers to Hong Kong and Taiwan of China, South Korea, Singapore. ASEAN-5 refers to Indonesia, Malaysia, the Philippines, Thailand, and Vietnam.China is expected to increase 11.5 percent in 2007 and 10.0 percent in 2008, while India is projected to expand 8.9 percent this year and 8.4 percent next year.The Asian economies as a whole will grow robustly at 8.0 percent this year and moderately to a still-brisk 6.9 percent next year, said the report.

BRUSSELS - Javier Solana, European Union top diplomat, expressed here on Thursday his concern over Taiwanese leaders' comments on the Chinese province's application for UN membership."I have noted with concern the comments made by Taiwan's leadership on October 24 concerning Taiwan's application for UN membership under the name of Taiwan," Solana said in a statement."The EU has a substantial interest in peace and stability in East Asia. It has a particular interest in the continued prosperity and security of Taiwan and in the maintenance of peaceful relations across the Taiwan Strait," he said.    The fundamental position of the EU is that the Taiwan question must be solved peacefully through cross-Strait negotiations between all concerned parties."We have concerns about the current policy of Taiwan's authorities to pursue a referendum on the question of UN membership in the name of Taiwan," Solana said, adding "This concern flows from the EU's conviction that both sides of the Strait should refrain from statements or actions which might raise tension across the Strait and which might be perceived as a unilateral change in the status quo."The proposed referendum would risk making it harder for Taiwan to enjoy the pragmatic participation in the activities of specialized multilateral fora, "when there are clear public interests for this and when statehood is not required." he said"I therefore want to encourage both sides to take further initiatives aimed at promoting dialogue, practical cooperation and confidence-building," he concluded.

Chinese government said on Tuesday Vietnam had caused concern by agreeing with BP, a British oil company, to build a gas pipeline in the South China Sea. "China has indisputable sovereignty over the Nansha Islands and neighboring areas," Foreign Ministry spokesman Qin Gang said in Beijing."Vietnam's new actions infringing on China's sovereignty, sovereign power and administrative rights in the Nansha Islands (in the South China Sea) go against the important consensus reached by leaders of the two countries on this maritime issue," he emphasized. "It is not beneficial to stability in the South China Sea area. China is paying close attention, and we have already made serious representations to the Vietnamese side," the spokesman said. "With everyone's hard work, the situation in the South China Sea has been stable." Qin also said that the February13 agreement on the Democratic People's Republic of Korea (DPRK) nuclear issue may have run afoul of some difficulties, but that does not mean the Six-Party Talks have failed or will be rendered invalid."(The difficulties) are natural because the talks have never been smooth, but the fact that the situation has encountered difficulties doesn't mean that the talks don't work," Qin said at a news conference. All parties are committed to the idea that negotiations are the only way to achieve a stable, nuclear-free Korean Peninsula and the normalization of diplomatic ties, he added. The DPRK (North Korea) walked out of the Six-Party Talks last month when the transfer of million that had been frozen at Banco Delta Asia in Macao did not come through. The latest agreement between the parties gives Pyongyang 60 days to shut down its nuclear facilities in return for energy aid. That deadline falls on Saturday. The US Treasury Department has said that Macao authorities are prepared to unblock the frozen funds. The government of Macao Special Administrative Region said it was aware of the US Treasury statement and that it would work with all parties involved. "Simultaneously, it expects all parties concerned to come up with appropriate and responsible arrangements," the government said on its website. Qin said Bank of China, which had been initially prepared to accept the frozen funds on behalf of Pyongyang, still needed more time to think about it. "It is a publicly listed company and has to conform to its international obligations and laws," he said. As for the Darfur issue, Qin said that China hoped that former UN secretary-general Kofi Annan's peace plan would be implemented and that the UN troops would be employed as early as possible.

A special assistance center was set up in Beijing Prison recently where policewomen, who are also qualified counselors, provide help for special "clients", male prisoners who are serving long sentences, Beijing Youth News reported on July 5. A policewoman counselor chats online with an inmate at a counseling and education center in Beijing Prison. [ynet.com] The police use computers with Internet access and chat through web cameras with lifers to help ease their psychological problems especially with those who have difficulty communicating. A short message service is also available for them to contact their families. The newly-established center is composed of policewomen. Due to regulations in prisons, the policewomen are not allowed to communicate with prisoners face-to-face, according to Lu Yanyan, the director of the center for counseling and correctional education in the Beijing Bureau of Prison Administration. "The work of counseling used to be the responsibility of policemen," explains Lu. "But because they are also officials who enforce correctional education on the prisoners, those who have psychological problems are reluctant to open their hearts to share their troubles. That's why policewomen fill this need." Wearing civilian clothes, not uniforms, the five policewomen appear much closer to the people they counsel. Though not face-to-face, the prisoners encounter a friendly and kind smile and feel more relaxed to talk openly about their feelings and emotions. A prisoner who was sentenced to life imprisonment seldom talked as he was abandoned by his family. But when a counselor surnamed Ren started to make appointments with him, he "became happier than before," as Ren put it. The special short message service is free for lifers. They can send as many messages as they want, but every message is checked by the officers. The quantity of messages sent and received currently is about 1,500 a day. Another prisoner told the reporter, even though he was concerned about his child's education and could not solve the problem himself, he felt more comfortable after he poured out his troubles to the counselor. As the counseling and correctional education director explains, it is important to provide counseling for those with long sentences, Lu says crimes are always the result of psychological problems and the prisoners are also disturbed by depression and anxiety in confinement.

NANJING -- Sixty-two years after Japan's surrender in the Second World War on Wednesday, Chinese and Japanese marked the event together with calls for world peace.In Nanjing, capital of east China's Jiangsu Province where the notorious Nanjing Massacre occurred, a 48-strong delegation of the Japanese left-wing group Mei Shin Kai commemorated the day.A Japanese woman prays in front of a monument for war victims during a gathering in memory of the end of the World War II, in Nanjing, East China's Jiangsu Province August 15, 2007. [newsphoto]"We pledge today to continue working for world peace and telling people the true history," said Matsuoka Tamaki, a primary school teacher from Osaka and head of the delegation.Tamaki started visiting veterans of the war in 1998 in the hope of discovering the truth about Japan's controversial history. Based on the accounts of six veterans, she identified a site in Nanjing, where more than 1,000 Chinese were killed during the massacre.According to her findings, the victims were led to Taipingmen in east Nanjing on Dec, 13 1937, and bayoneted, shot or forced to step on land mines.To make sure everyone was dead, the Japanese soldiers made a thorough search the next day and bayoneted those who still breathing, Tamaki said."This is a new finding," said Zhu Chengshan, curator of the Memorial Hall of the Victims in the Nanjing Massacre, noting that more than 20 sites, most by the Yangtze River, have been recognized as massacre sites.Zhu said he would erect a memorial monument at the Taipingmen site.Invading Japanese troops occupied Nanjing on December 13, 1937, and launched a six-week massacre. Chinese records show more than 300,000 people, not only disarmed soldiers but also civilians, were killed.Japanese college student Hitomi Fukugawa, 21, visiting China for the first time, said she was astonished at survivors' stories. "In Japan I learnt little about the invasion, but now I feel I have more to learn," she said.In northeast China's Heilongjiang Province, Wednesday was the first Peace Day in Qiqihar, site of the first battle against Japanese troops after they launched their invasion on September 18, 1931.Performances were held to mark the day the war ended, and more than 3,000 pupils drew symbols of peace on an 815-meter-long banner."We should remember the tribulations of war on this day and cherish peace," said businessman Wang Xinghai, 35, at the memorial wall on the Peace Square.In Shenyang, capital of Liaoning, elderly people gathered to recall the war."I saw a Japanese soldier kill a six-year-old kid with his bayonet and slay a newly-wed couple," said 87-year-old Sun Shizhen in sorrow.Veteran Shan Lizhi, 96, said, "All our sacrifices were made for peace and prosperity.""Remembering history doesn't mean harboring hatred," said Wang Jianxue, head of the Warfare Research Institute of "9.18". "Our country was weak at that time, and we should tell our young people to work hard for China's rejuvenation."In Beijing, a set of surgical tools and the wooden trunk used by Canadian surgeon Norman Bethune were donated to the Chinese Museum of Anti-Japanese War on Wednesday.Bethune came to China in 1938 and set up a front-line mobile hospital where he operated on wounded soldiers. He is credited with saving thousands of lives.In Chengdu, capital of Sichuan Province, more than 200 people laid flowers at the monument for dead Sichuan soldiers, a bronze statue of a soldier in a bamboo hat, carrying a grenade and holding a gun facing east.During the eight-year war, about three million Sichuan soldiers fought and more than 600,000 died.Holding a bouquet of white chrysanthemums, a man in his 70s who declined to be named said, "We should never forget those who died for the liberation of our country and value peace for them."