China lets foreign sovereigns, central banks exceed $1 billion investment limit

Sunday 23 December 2012

Shanghai, Dec 23 : China's foreign exchange regulator has removed the $1 billion limit for foreign sovereign wealth funds, central banks and monetary authorities buying Chinese assets through the Qualified Institutional Investor Programme (QFII).

The new regulations, published on the website of the State Administration of Foreign Exchange (SAFE), did not specify a new top limit, merely that the funds can apply to invest over $1 billion.

The policy is aimed at sovereign wealth funds like Qatar Holdings and the Hong Kong Monetary Authority, both of which have already been approved to invest up to $1 billion each through QFII.

SAFE will retain the right to approve or deny individual applications on a case-by-base basis.

Chinese regulators have said in the past that facilitating increased foreign investment in Chinese assets will help restore confidence in China's stock markets, which have declined by over 60 percent since November 2007.

But the total amount of foreign money allowed to enter the domestic stock market remains small, and the new rules do not increase it.

Combined foreign investment in China's stock market accounts for only 1 percent of total market capitalization.

The overall net quota for the QFII programme remains at its current $80 billion, of which SAFE has only allocated $36 billion for use by QFII funds as of November 30.

Foreign appetite for Chinese equities has shown some signs of increase in recent months, especially in Hong Kong, but the weak performance of stock-focused QFII funds - and complaints about high fee structures - has dampened appetite. (GRAPHIC: Comparison of QFII fund performances in China.

To drum up additional interest, Chinese regulators, including officials from the Shanghai and Shenzhen stock exchanges, went on an overseas tour in September to advocate for Chinese equities and QFII in particular.

The new regulations also relax restrictions on the ability of funds to remit principal and income from investments, but made no further clarifications as to how China will tax QFII profits, an area of enduring uncertainty for QFII investors.

Chinese stock markets had their biggest single-day jump since 2009, which some analysts attributed to expectations of further relaxation of rules on foreign investment in stocks.

Others, however, offered alternative explanations for the unusual jump, such as behind-the-scenes share buybacks by state-owned entities trying to engineer a rebound for the end of the year.


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Best Buy extends deadline for founder bid

New York, Dec 23 : Best Buy Co Inc (BBY) agreed to extend the deadline to February 28 for founder Richard Schulze to make a bid for the company, continuing the uncertainty for shareholders over whether he can put a bid together.

Best Buy shares fell 14.2 percent to $12.12 on the New York Stock Exchange.

The company said the extension would allow Schulze to include the consumer electronics retailer's full-year results as part of his due diligence review.

The new deadline will also give him more time to line up partners and financing for a bid. A source said that Schulze didn't have financing lined up in time for a December bid.

Schulze, who founded Best Buy in 1966, has said he would fund any deal through a combination of private equity and debt financing, as well as the reinvestment of some of his own equity in the company.

"Obviously with the extension, there is still some hesitation on the part of his private equity suitors about how much financing they would want to put up for this deal," Morningstar analyst R J Hottovy said.

Under the extension, Schulze will be able to submit an offer any time during February, and the company will have 30 days to review and make a decision on the bid.

In August, Schulze made an informal proposal to acquire Best Buy for $24 to $26 per share, or a total of $8.16 billion to $8.84 billion. Including debt, it would be as much as $10.9 billion.

But Best Buy's performance has continued to lag and its stock has slid since. Last month, the company reported a decline in same-store sales for the ninth time in the last 10 quarters.

Best Buy's fortunes have faltered as consumers increasingly use its big box stores as showrooms for products they end up buying online at Amazon.com Inc (AMZN.O) and other websites.

To add to its troubles, the company forced out Schulze's protégé, Brian Dunn, as chief executive earlier this year amid allegations he was having an inappropriate relationship with a female employee.

That scandal led to the ouster of Schulze from the board, and Best Buy hired turnaround expert Hubert Joly as CEO to come up with its own restructuring plan.

Schulze remains Best Buy's largest shareholder with about one-fifth of the company's outstanding shares.

If he can come in with a bid at about $16 or $17 a share when the market thinks the stock is only worth $12, it is in the interests of shareholders to extend the deadline, Hottovy said.

Others agreed.

"That's really the best hope for investors, that Schulze takes it out because there's been no other good news for the company," said Rakesh Agrawal, principal analyst at San Francisco-based consulting firm reDesign Mobile.

Agrawal, who also advises hedge funds and money managers on the technology sector, said at this point the stock was trading entirely on whether a deal can get done or not.

A Best Buy spokesman said the extension will not affect the company's day-to-day operations, especially during the all-important holiday season.

"We are determined to have a strong holiday season," both in stores and online, spokesman Matt Furman said, adding that the company was moving "full speed ahead" with its turnaround plan.

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Best Buy extends deadline for founder bid

New York, Dec 23 : Best Buy Co Inc (BBY) agreed to extend the deadline to February 28 for founder Richard Schulze to make a bid for the company, continuing the uncertainty for shareholders over whether he can put a bid together.

Best Buy shares fell 14.2 percent to $12.12 on the New York Stock Exchange.

The company said the extension would allow Schulze to include the consumer electronics retailer's full-year results as part of his due diligence review.

The new deadline will also give him more time to line up partners and financing for a bid. A source said that Schulze didn't have financing lined up in time for a December bid.

Schulze, who founded Best Buy in 1966, has said he would fund any deal through a combination of private equity and debt financing, as well as the reinvestment of some of his own equity in the company.

"Obviously with the extension, there is still some hesitation on the part of his private equity suitors about how much financing they would want to put up for this deal," Morningstar analyst R J Hottovy said.

Under the extension, Schulze will be able to submit an offer any time during February, and the company will have 30 days to review and make a decision on the bid.

In August, Schulze made an informal proposal to acquire Best Buy for $24 to $26 per share, or a total of $8.16 billion to $8.84 billion. Including debt, it would be as much as $10.9 billion.

But Best Buy's performance has continued to lag and its stock has slid since. Last month, the company reported a decline in same-store sales for the ninth time in the last 10 quarters.

Best Buy's fortunes have faltered as consumers increasingly use its big box stores as showrooms for products they end up buying online at Amazon.com Inc (AMZN.O) and other websites.

To add to its troubles, the company forced out Schulze's protégé, Brian Dunn, as chief executive earlier this year amid allegations he was having an inappropriate relationship with a female employee.

That scandal led to the ouster of Schulze from the board, and Best Buy hired turnaround expert Hubert Joly as CEO to come up with its own restructuring plan.

Schulze remains Best Buy's largest shareholder with about one-fifth of the company's outstanding shares.

If he can come in with a bid at about $16 or $17 a share when the market thinks the stock is only worth $12, it is in the interests of shareholders to extend the deadline, Hottovy said.

"That's really the best hope for investors, that Schulze takes it out because there's been no other good news for the company," said Rakesh Agrawal, principal analyst at San Francisco-based consulting firm reDesign Mobile.

Agrawal, who also advises hedge funds and money managers on the technology sector, said at this point the stock was trading entirely on whether a deal can get done or not.

A Best Buy spokesman said the extension will not affect the company's day-to-day operations, especially during the all-important holiday season.

"We are determined to have a strong holiday season," both in stores and online, spokesman Matt Furman said, adding that the company was moving "full speed ahead" with its turnaround plan.

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SEC has examined Bank of America mortgage repurchases

Washington, Dec 23 : Securities regulators have made inquiries into the mortgage repurchase practices at Bank of America Corp's Countrywide unit, according to a transcript filed in a lawsuit against the bank by insurer MBIA Inc.

The details of the inquiries, which had not been previously disclosed, were included in documents filed this week.

It is unclear if the SEC continues to investigate the matter, but the documents reveal the agency's interest dating back to at least 2010 in an issue that has already saddled the second-largest U.S. bank with billions of dollars of losses in the wake of the financial crisis.

According to the documents, the U.S. Securities and Exchange Commission requested a meeting with the bank to discuss its representations and warranties process, according to the documents.

When selling the mortgages, banks made promises or "representations and warranties" about the loans. Investors can ask banks to buy back soured mortgages if these promises were evidently broken, for reasons such as poor underwriting, insufficient verification of income or other documentation errors.

The SEC also asked about reserves for mortgage repurchase requests, a bank employee testified.

Since buying Countrywide in 2008, Bank of America has been forced to take billions of dollars of losses on soured mortgages that were sold to investors such as Fannie Mae and Freddie Mac during the housing boom. At the end of the third quarter, it had set aside reserves of $16.3 billion in reserves for future claims.

While the SEC has taken action against Bank of America over its merger with Merrill Lynch, it has not sued the bank over conduct at Countrywide. In 2010, the SEC imposed a record $22.5 million penalty on Countrywide chief executive Angelo Mozilo over disclosures made as the subprime mortgage crisis emerged.

The SEC's interest in repurchases was disclosed as part of heated litigation between MBIA and Bank of America over mortgage-related claims. Bank of America filed a lawsuit against MBIA related to the bank's efforts to buy the insurer's bonds.

An SEC spokesman did not respond to a request for comment. A Bank of America spokesman declined to comment.

In its annual report filing in February, the bank said it had received "a number of subpoenas and other requests for information" from regulators about mortgage-backed securities and other mortgage-related matters.

In its most recent quarterly filing, it also included a recurring disclosure that "in the ordinary course of business" the bank is "subject to regulatory examinations, information gathering requests, inquiries, investigations, threatened legal actions and proceedings."

The transcripts filed this week include depositions MBIA lawyers conducted with Bank of America employees in August. The interviews, with Cynthia Simantel and Michael Schloessmann, shed new light on what the SEC may be examining.

Simantel, who is an executive in Bank of America's investor audit department, which handles repurchase claims, said she gave testimony to the SEC "a few years ago", and discussed with the SEC a grid used to rate loans that came in to the group, according to the transcripts.

Schloessmann, who managed the representations and warranties process, which governs how repurchases are made, said Countrywide provided the SEC with claims-related data the agency had requested in early 2010.

Countrywide also put together a document about the top five reasons that they have approved repurchases related to so-called monoline insurers, which was provided to the SEC, according to emails discussed by Schloessmann.

The details suggest the SEC could be examining whether the bank was properly reserving for repurchases, or whether it properly disclosed its repurchase requests.

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Wall St Week Ahead: Holiday "on standby" as clock ticks on cliff

New York, Dec 23 : The last two weeks of December are traditionally quiet for stocks, but traders accustomed to a bit of time off are staying close to their mobile devices, thanks to the "fiscal cliff."

Last-minute negotiations in Washington on the so-called fiscal cliff - nearly $600 billion of tax increases and spending cuts set to take effect in January that could cause a sharp slowdown in growth or even a recession - are keeping some traders and analysts from taking Christmas holidays because any deal could have a big impact on markets.

"A lot of firms are saying to their trading desks, 'You can take days off for Christmas, but you are on standby to come in if anything happens.' This is certainly different from previous years, especially around this time of the year when things are supposed to be slowing down," said J.J. Kinahan, chief derivatives strategist at TD Ameritrade in Chicago.

"Next week is going to be a Capitol Hill-driven market."

With talks between President Barack Obama and House Speaker John Boehner at an apparent standstill, it was increasingly likely that Washington will not come up with a deal before January 1.

Gordon Charlop, managing director at Rosenblatt Securities in New York, will also be on standby for the holiday season.

"It's a 'Look guys, let's just rotate and be sensible" type of situation going on," Charlop said.

"We are hopeful there is some resolution down there, but it seems to me they continue to walk that political tightrope... rather than coming up with something."

Despite concerns that the deadline will pass without a deal, the S&P 500 has held its ground with a 12.4 percent gain for the year. For this week, though, the S&P 500 fell 0.3 percent.

This will mark the last so-called "quadruple witching" day of the year, when contracts for stock options, single stock futures, stock index options and stock index futures all expire. This could make trading more volatile.

"We could see some heavy selling as there is going to be a lot of re-establishing of positions, reallocation of assets before the year-end," Kinahan said.

Higher tax rates on capital gains and dividends are part of the automatic tax increases that will go into effect next year, if Congress and the White House don't come up with a solution to avert the fiscal cliff. That possibility could give investors an incentive to unload certain stocks in some tax-related selling by December 31.

Some market participants said tax-related selling may be behind the weaker trend in the stock price of market leader Apple (AAPL). Apple's stock has lost a quarter of its value since it hit a lifetime high of $705.07 on September 21.

The stock fell 3.8 percent to $509.79 after the iPhone 5 got a chilly reception at its debut in China and two analysts cut shipment forecasts. But the stock is still up nearly 26 percent for the year.

"If you owned Apple for a long time, you should be thinking about reallocation as there will be changes in taxes and other regulations next year, although we don't really know which rules to play by yet," Kinahan said.

But one indicator of the market's reduced concern about the fiscal cliff compared with a few weeks ago, is the defense sector, which will be hit hard if the spending cuts take effect. The PHLX Defense Sector Index (.DFX) is up nearly 13 percent for the year, and sits just a few points from its 2012 high.


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Bemina residents threaten protests

Srinagar, Dec 23: The residents of Bemina colony area have alleged erratic power supply and threatened to come on streets if the area is not supplied uninterrupted power supply as per the schedule issued by the Power Development Department.

 “Bemina being a metered area should get uninterrupted and round- the- clock power supply. But it is unfortunate that the area, in addition to scheduled cuts, is subjected to sudden unscheduled power cuts daily. We hardly get power supply for more than two hours at a stretch. After every hour or half an hour we experience power cuts for hours together,” the residents said, threatening protests if the PDD authorities failed to desist from subjecting the area to the unscheduled power cuts.

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Protest against power crisis in Pulwama

Pulwama, Dec 23: Unscheduled power cuts across the district from past nearly one month triggered massive protest.

 Hundreds of people assembled at the Chersoo Awantipora and staged protest against the Power Development Department accusing it of plunging the district into darkness. The protestors later blocked the Srinagar-Jammu highway at Chersoo disrupting vehicular traffic for nearly four hours.

 “PDD has deliberately plunged the district into darkness. The department has resorted to inordinate delay in repairing the damaged transformers. We are facing immense hardships due to erratic power supply,” the protesters said.  

 They accused the PDD authorities of acting as mute spectators. “We many times approached the concerned PDD authorities for restoration of power but they failed,” they said.            

 Later people of Cheshkot, Kaigam, Rathsuna, Siamoh, Larnoo, Sail, Awanpora and Gadikhal also joined the protest. “The unscheduled power cuts have made our lives miserable. If PDD does not restore round the clock power we will be forced to launch an agitation against the department,” they said.

 The inhabitants of Satpakhren Khrew here said they are without electricity from last one month. “Despite passing of a month our transformer has not been repaired yet,” they said.

 The inhabitants of Pinglish Tral also echoed the same views.  “We approached the PDD officials umpteen times however they failed to repair the transformer,” they said.

 The inhabitants of Hajaam Mohalla Jandwal said a 25 KV transformer was installed there a year ago. “But it has not been connected to the main HT line despite many reminders as a result we are reeling under darkness,” they said.

 Later the protesters dispersed peacefully following assurance to restore the power and undertake repairs of transformers by senior officials of PDD. 

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Ayoub’s life sentence plunges family into endless misery

Srinagar, Dec 23  : The house was calm and when the five-year-old Darfan Ayoub saw the photograph of his father Muhammad Ayoub in a local newspaper, the boy could just utter one word: Papa……?

 Muhammad Ayoub Dar of Rawalpora is serving life-sentence at Srinagar’s Central Jail since 2009. His home on the City outskirts is inhabited by five souls but without a breadwinner.

 Ayoub’s six-year-old daughter Yuksal, a kindergarten student, waits for the return of his Papa. Ayoub’s 27-year-old sister does not agree to get married till his brother returns. Ayoub’s 82-year-old father Haji Abdul Ahad Dar has lost his memory and has one last wish: To see his son return so that he may perform his last rites.

 Ayoub’s 33-year-old wife Rouhie broke down when she heard the word Papa from Darfan. She silently pulled the newspaper from his hands and placed it under the table. On the table, a number of monochrome and color photographs of Ayoub’s marriage with Rouhie were decked. Darfan and Yuksal froze, their eyes shooting up to Ayoub’s photos.

 “I can no longer hide the truth from the children,” Rouhie said.
 “They ask me about their father and I tell them he will come soon.”

 Rouhie said Ayoub was sentenced to life on March 7, 2009 for second time.  “He had already spent 13-year term in jail before our marriage. And then he was again sentenced to life,” she said. “They falsely implicated him in the assassination case of Moulvi Mirwaiz Muhammad Farooq.”

 Rouhie and Ayoub were married in 2004. She was 25 then. “Ayoub had carved his niche in business. He had his own restaurant at Rawalpora Chowk. And when he was sentenced for life term again, the family was crumbled,” she said.

 Ayoub’s mother Hajira died due to the shock as she could not bear the life sentence of her son. “His elder sister also passed away shortly after his life sentence,” Rouhie said.

 “I have no energy left to face the challenges without him. Above is God and below are us. There is just one thing which keeps me going. That is hope.”

 Rouhie said her husband was innocent and there was no evidence against him of any sort. “I just say my Ayoub is innocent. He had nothing to do with anything. I have one thing to ask: Does law work this way?”

 Rouhie said nobody ever helped them to get Ayoub back even after going from pillar to post. “The thing is not we don’t have money or we are starving. The point is my kids are asking for their father. Ayoub’s father who has lost memory is waiting for him. And then his sister who is looking for his brother so that she gets married. We just need him back,” she said.

 Life without Ayoub, Rouhie said, is like facing a doomsday each day. “Our home is without roof as Ayoub is not there. We just hope he comes back and infuses new life in all of us,” she said.
 Ayoub’s wife said the family had applied for his parole but was not granted. “Our questions are never answered as why he was given second life sentence if he had already undergone one. We are never paid heed,” she said.

 Ayoub’s 82-year-old father Haji Abdul Ahad Dar is a loner. The moment he enters his home lobby, he gets stifled and struggles to breathe. He always remains outside, on the veranda. “I was a lion…,” he said. “But when my innocent son was put behind bars for no fault of his, I broke down.” The octogenarian said before he dies he wants to see his son back home. “I want him to perform my last rites.”

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Let's do the twist: Spiral proteins are efficient gene delivery agents

Islamabad, Dec 23: Clinical gene therapy may be one step closer, thanks to a new twist on an old class of molecules.

A group of University of Illinois researchers, led by professors Jianjun Cheng and Fei Wang, have demonstrated that short spiral-shaped proteins can efficiently deliver DNA segments to cells. The team published its work in the journal Angewandte Chemie.

"The main idea is these are new materials that could potentially be used for clinical gene therapy," said Cheng, a professor of materials science and engineering, of chemistry and of bioengineering.

Researchers have been exploring two main pathways for gene delivery: modified viruses and nonviral agents such as synthetic polymers or lipids. The challenge has been to address both toxicity and efficiency. Polypeptides, or short protein chains, are attractive materials because they are biocompatible, fine-tunable and small.

"There are very good in vitrotransfection agents available, but we cannot use them in vivo because of their toxicity or because some of the complexes are too large," Cheng said. "Using our polypeptides, we can control the size down to the 200 nanometer range, which makes it a very interesting delivery system for in vivo applications."

A polypeptide called poly-L-lysine (PLL) was an early contender in gene delivery studies. PLL has positively charged side chains -- molecular structures that stem from each amino acid link in the polypeptide chain -- so it is soluble in the watery cellular environment.

However, PLL gradually fell into disuse because of its limited ability to deliver genes to the inside of cells, a process called transfection, and its high toxicity. Cheng postulated that PLL's low efficiency could be a function of its globular shape, as polypeptides with charged side chains tend to adopt a random coil structure, instead of a more orderly spiral helix.

"We never studied the connections of conformation with transfection efficiency, because we were never able to synthetically make materials containing both cationic charge and a high percentage of helical structures," Cheng said. "This paper demonstrated for the first time that helicity has a huge impact on transfection efficiencies."

Earlier this year, Cheng's group developed a method of making helical polypeptides with positively charged side chains.

To test whether a helical polypeptide could be an efficient gene delivery agent, the group assembled a library of 31 helical polypeptides that are stable over a broad pH range and can bond to DNA for delivery. Most of them outperformed PLL and a few outstripped a leading commercial agent called polyethyleneimine (PEI), notorious for its toxicity although it is highly efficient. The helical molecules even worked on some of the hardest cells to transfect: stem cells and fibroblast cells.

"People kind of gave up on polypeptide-based materials for gene deliveries because PLL had low efficiency and high toxicity," Cheng said. "The polypeptide that we designed, synthesized and used in this study has very high efficiency and also well-controlled toxicities. With a modified helical polypeptide, we demonstrated that we can outperform many commercial agents."

The polypeptides Cheng and his co-workers developed can adopt helical shapes because the side chains are longer, so that the positive charges do not interfere with the protein's winding. The positive charges readily bind to negatively charged DNA, forming complexes that are internalized into cellular compartments called endosomes. The helical structures rupture the endosomal membranes, letting the DNA escape into the cell.

To confirm that the spiral polypeptide shape is the key to transfection, the researchers then synthesized two batches of the most efficient polypeptide: one batch with a helical shape, one with the usual random coil. The helical polypeptide far exceeded the random-coil polypeptide in both efficiency and stability.

"This demonstrates that the helicity is very important, because the polymer has exactly the same chemical makeup; the only difference is the structure," said Cheng, who also is associated with the Institute for Genomic Biology and the Beckman Institute for Advanced Science and Technology, both at the U. of I.

Next, the researchers plan to further explore their helical polypeptides' properties, especially their cell-penetrating abilities. They hope to control sequence and structure with precision for specific applications, including gene delivery, drug delivery, cell-membrane penetration and antimicrobial action.

The National Science Foundation and the National Institutes of Health supported this work. Fei Wang is a professor of cell and development biology and of bioengineering. Postdoctoral researchers Nathan Gabrielson, Lichen Yin and Dong Li and graduate student Hua Lu were co-authors of the paper.ScienceDaily (Dec. 15, 2011) — A team of scientists and clinicians, led by researchers at King's College London and St George's, University of London, are calling for a review of penicillin dosing guidelines  for children, that have remained unchanged for nearly 50 years.

The call comes as a study published in the British Medical Journal indicates some children may not be receiving effective doses, which could potentially lead to failed treatment and contribute to antibiotic resistance.
Oral penicillins (such as amoxicillin) account for nearly 4.5 million of the total 6 million annual prescriptions for antibiotics given to treat childhood bacterial infections each year in the UK.

Current dosing guidelines for penicillin are provided by the British National Formulary for Children (BNFC) and are mainly based on age bands. The doses given have not changed in almost 50 years. But the dose of penicillin needed is determined by a child's weight, and the guidelines have not taken into account the increase in the average weight of children over time. The experts say reviewing these guidelines is essential, to ensure all children who require penicillin are receiving effective doses.

The review was led by Dr Paul Long from the Institute of Pharmaceutical Science at King's College London and Professor Mike Sharland at St George's, University of London on behalf of the improving Children's Antibiotic Prescribing Research Network (iCAP).
The team carried out a literature review of evidence, including all the historic archives of the Royal Pharmaceutical Society and the British Medical Association, to understand the origins of the current dosing guidelines. They found that prescribing based on age bands had first been suggested in the early 1950s, based on the results of oral dosing studies. Following these findings, a general recommendation to use age banding for all antibiotics in children was published in the BMJ in 1963, and these same recommendations remain in use today.

The researchers found that the age band guidelines set in 1963 were accompanied by average weights, and doses are based on fractions of the widely used adult doses. The BNFC structured dosing bands are: birth to 1 year (10kg); 2 years (13kg); 5 years (18kg); and 10 years (30kg). However, according to the Health Survey for England 2009, the average weight today of a 5 year old is 21kg and a 10 year old is 37kg, indicating that average weights today are up to twenty percent higher than in 1963.

Under-dosing is potentially a problem for children, as this could lead to sub-therapeutic concentrations.

The researchers also noted that adult penicillin recommendations have been re-evaluated taking modern weights into consideration, and penicillin doses have consequently increased. But UK recommendations for children have not been reassessed in the same way.

Dr Paul Long, Senior Lecturer in Pharmacognosy at King's College London, said: 'We were surprised at the lack of evidence to support the current oral penicillins dosing recommendations for children, as it is such a commonly used drug. Children's average size and weight are slowly but significantly changing, so what may have been adequate doses of penicillin 50 years ago are potentially not enough today.

'It is important to point out that this study does not provide any clinical evidence that children are receiving sub-optimal penicillin doses that lead to harm, and we want to reassure parents of that. But what we are saying is that we should ensure that children with severe infections who need these antibiotics the most are still receiving an effective dose.

'In the long-term we are concerned that under-dosing could lead to penicillin-resistance in both individuals and wider communities, which is a very serious issue, given the number of prescriptions of this medicine given every year for common childhood infections.

'If we want to be sure that we are treating childhood bacterial infections effectively, the evidence base behind these prescribing guidelines needs to be improved, and the recommended doses reviewed accordingly.'

Professor Mike Sharland from St George's, University of London, and co-author of the study said: 'Although there is now a very formal process of determining the right dose for new drugs being licensed for use in children, we also need to check more carefully that the guidelines are still correct for older drugs that have been used for a long time. We are not saying the current doses are wrong or unsafe and parents should always give the medicine at the doses prescribed by their GP. We are saying that we need to develop a clearer system to check the doses used for older medicines.'

Simon Keady, Royal Pharmaceutical Society spokesperson on children's medicines, said: 'This research and its outcomes clearly demonstrates the importance of continued work in the field of paediatrics as further evidence and experience is gathered. The use of penicillins over many years for a wide variety of conditions should not stop us from continuing to identify the most appropriate dose which gives us the most effective outcomes. The work clearly shows that the focus should not always be about new drugs but also looking at where we have historically centred dosing around age bands.'

NICE (National Institute for Health and Clinical Excellence) guidance on Upper Respiratory Tract Infections (URTIs) suggests that the majority of minor URTI's in children are viral and will resolve on their own without the need for antibiotics. Therefore, the authors also suggest that not only do the effective doses for children of all ages and weights need to be determined, but there is the need to target more clearly which children will really benefit most from antibiotics.

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Scientists may be able to double efficacy of radiation therapy

Islamabad, Dec 23 : Scientists may have a way to double the efficacy and reduce the side effects of radiation therapy.

Georgia Health Sciences University scientists have devised a way to reduce lung cancer cells' ability to repair the lethal double-strand DNA breaks caused by radiation therapy.

"Radiation is a great therapy -- the problem is the side effects," said Dr. William S. Dynan, biochemist and Associate Director of Research and Chief, Nanomedicine and Gene Regulation at the GHSU Institute of Molecular Medicine and Genetics. "We think this is a way to get the same amount of cancer cell death with less radiation or use the same amount and maybe cure a patient that could not be cured before."

Radiation therapy capitalizes on radiation's ability to kill cells by causing double-strand breaks in DNA. But the fact that varying levels of radiation are essentially everywhere -- food, air, the ground, etc. -- means all cells, including cancer cells, have internal mechanisms to prevent the lethal breakage.

GHSU scientists are targeting the natural defense mechanisms by packaging a piece of an antibody against one of them with folate, which has easy access to most cells, particularly cancer cells. Many cancers, including the lung cancer cells they studied, have large numbers of folate receptors so that cancer cells get a disproportionate share of the package.

Previous efforts to destroy cancer cells' ability to avoid radiation damage have focused on receptors on their surface, said Dr. Shuyi Li, molecular biologist, pediatrician and corresponding author on the study in the International Journal of Radiation Oncology.

To get a more direct hit, the scientists took advantage of folate receptors as a point of entry by chemically binding folate with the small piece of their antibody, ScFv 18-2. The package heads straight for the cell nucleus where a different chemical environment breaks the bond, freeing ScFv 18-2 to attack the regulatory region of DNA-dependent protein kinase, an enzyme essential to DNA repair.

"We are joining a targeting molecule with a cargo," said Dynan. "This strategy targets one of the key enzymes so it's harder to repair," Li said. This makes cancer cells more vulnerable to radiation.
Dynan and Li say the approach could be used to deliver any number of drugs directly inside cancer cells. Future studies include looking at other cell entry points as well as other targets to ensure they have the most effective package. Studies to date have been in human lung cancer cells in culture, so next steps also need to include animal studies.

Their approach mimics a natural process called endocytosis in which cells engulf proteins and other substances they want to let inside but can't fit through normal doorways.

Folate receptors already are being used as direct entry points for chemotherapeutic drugs, including clinical studies of a new strategy for ovarian cancer. GHSU is participating in clinical trials of a therapy that pairs an agent too toxic to be delivered through the bloodstream with folate to better target one of the most deadly cancers.

Dynan is the Georgia Research Alliance Eminent Scholar in Molecular Biology. Dynan and Li are both faculty members in GHSU's Medical College of Georgia. Dynan also is a faculty member in the College of Graduate Studies.

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Penicillin doses for children should be reviewed

Islamabad, Dec 23: A team of scientists and clinicians, led by researchers at King's College London and St George's, University of London, are calling for a review of penicillin dosing guidelines for children, that have remained unchanged for nearly 50 years.

The call comes as a study published in the British Medical Journal indicates some children may not be receiving effective doses, which could potentially lead to failed treatment and contribute to antibiotic resistance.

Oral penicillins (such as amoxicillin) account for nearly 4.5 million of the total 6 million annual prescriptions for antibiotics given to treat childhood bacterial infections each year in the UK.

Current dosing guidelines for penicillin are provided by the British National Formulary for Children (BNFC) and are mainly based on age bands. The doses given have not changed in almost 50 years. But the dose of penicillin needed is determined by a child's weight, and the guidelines have not taken into account the increase in the average weight of children over time. The experts say reviewing these guidelines is essential, to ensure all children who require penicillin are receiving effective doses.

The review was led by Dr Paul Long from the Institute of Pharmaceutical Science at King's College London and Professor Mike Sharland at St George's, University of London on behalf of the improving Children's Antibiotic Prescribing Research Network (iCAP).
The team carried out a literature review of evidence, including all the historic archives of the Royal Pharmaceutical Society and the British Medical Association, to understand the origins of the current dosing guidelines. They found that prescribing based on age bands had first been suggested in the early 1950s, based on the results of oral dosing studies. Following these findings, a general recommendation to use age banding for all antibiotics in children was published in the BMJ in 1963, and these same recommendations remain in use today.

The researchers found that the age band guidelines set in 1963 were accompanied by average weights, and doses are based on fractions of the widely used adult doses. The BNFC structured dosing bands are: birth to 1 year (10kg); 2 years (13kg); 5 years (18kg); and 10 years (30kg). However, according to the Health Survey for England 2009, the average weight today of a 5 year old is 21kg and a 10 year old is 37kg, indicating that average weights today are up to twenty percent higher than in 1963.

Under-dosing is potentially a problem for children, as this could lead to sub-therapeutic concentrations.

The researchers also noted that adult penicillin recommendations have been re-evaluated taking modern weights into consideration, and penicillin doses have consequently increased. But UK recommendations for children have not been reassessed in the same way.

Dr Paul Long, Senior Lecturer in Pharmacognosy at King's College London, said: 'We were surprised at the lack of evidence to support the current oral penicillins dosing recommendations for children, as it is such a commonly used drug. Children's average size and weight are slowly but significantly changing, so what may have been adequate doses of penicillin 50 years ago are potentially not enough today.

'It is important to point out that this study does not provide any clinical evidence that children are receiving sub-optimal penicillin doses that lead to harm, and we want to reassure parents of that. But what we are saying is that we should ensure that children with severe infections who need these antibiotics the most are still receiving an effective dose.

'In the long-term we are concerned that under-dosing could lead to penicillin-resistance in both individuals and wider communities, which is a very serious issue, given the number of prescriptions of this medicine given every year for common childhood infections.

'If we want to be sure that we are treating childhood bacterial infections effectively, the evidence base behind these prescribing guidelines needs to be improved, and the recommended doses reviewed accordingly.'

Professor Mike Sharland from St George's, University of London, and co-author of the study said: 'Although there is now a very formal process of determining the right dose for new drugs being licensed for use in children, we also need to check more carefully that the guidelines are still correct for older drugs that have been used for a long time. We are not saying the current doses are wrong or unsafe and parents should always give the medicine at the doses prescribed by their GP. We are saying that we need to develop a clearer system to check the doses used for older medicines.'

Simon Keady, Royal Pharmaceutical Society spokesperson on children's medicines, said: 'This research and its outcomes clearly demonstrates the importance of continued work in the field of paediatrics as further evidence and experience is gathered. The use of penicillins over many years for a wide variety of conditions should not stop us from continuing to identify the most appropriate dose which gives us the most effective outcomes. The work clearly shows that the focus should not always be about new drugs but also looking at where we have historically centred dosing around age bands.'

NICE (National Institute for Health and Clinical Excellence) guidance on Upper Respiratory Tract Infections (URTIs) suggests that the majority of minor URTI's in children are viral and will resolve on their own without the need for antibiotics. Therefore, the authors also suggest that not only do the effective doses for children of all ages and weights need to be determined, but there is the need to target more clearly which children will really benefit most from antibiotics.

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Afghanistan's Garmsir is a success for Nato – but its future remains uncertain

Hazarjoft, Dec 23 : The villages and fields of Garmsir lie like a snake across the deserts of southern Afghanistan, the head a cluster of mud houses, irrigation canals and bazaars around the district capital, the body a narrow strip of cotton, opium poppy and wheat twisting down beside the Helmand river towards Pakistan and Iran.

It was mostly Taliban territory until US marines poured hundreds of troops and hundreds of millions of dollars into reclaiming this impoverished corner of an already poor province. Crammed bazaars, reoccupied homes and busy roads are testament to their efforts.

"Compared with two years ago it's night and day," said Captain Devin Blowse, commanding officer of the company of US marines fighting in Garmsir. "Then if you were from here, you either stayed in your compound, left to go to a more stable area, or you worked with the Taliban."

There are probably just a few dozen insurgent fighters left in Garmsir, he added, and the main Nato base where soldiers once lived off ration packs and bunkered down during regular rocket attacks has become a relatively comfortable complex with internet, full-service laundry and two cooked meals a day.

The only deaths on the marines' summer combat tour were at the hands of a rogue police employee who gunned down three men at a gym inside their main base, Forward Operating Base Delhi. Outside, they have barely come under fire.

Afghan security forces, who mostly vanished as violence increased, have returned to take over a string of marine outposts along the 45 miles of river and cotton and poppy fields that make up Garmsir. Civilian officials are in charge of health, education and justice.

As Nato prepares to pull most combat troops out of Afghanistan by the end of 2014, Garmsir could be presented as a model for what it wants to leave behind: violence is sharply down, security forces are actively taking on insurgents, and the government is organising basic services such as schools and clinics.

But the US marines who were the main architects of the current stability are leaving soon, and it is not yet clear whether the patchy branches of the central government and its security forces that are meant to take over are up to the task yet.

The people with perhaps most at stake in Garmsir's future – families who eke out a living from its poppy and cotton – have yet to make up their minds, a reminder of how fragile the changes seem to those living through them. While some have thrown in their lot with the government against the Taliban, officials acknowledge many are staying on the sidelines of a bitter conflict with no clear end.

"They are not opposed to the government but they don't have a good relationship either: they are just farmers, they are waiting to see the result, who is the winner – the government or the Taliban," said the acting Garmsir district governor, Ayoub Omar, in an office decorated with a map of Afghanistan, plastic flowers and several velveteen sofas. "Whoever wins, they will work with him." Few answers

Many resent a government they feel provides little help, and security forces seen as transient at best, predatory outsiders at worst. Dull and dangerous rural backwaters such as Garmsir rarely attract the best civil servants, police and army officers and when it does, it struggles to hold on to them. What little development the area has seen, in the form of new schools and roads, has largely come from foreigners, not the government in Kabul.

A few dozen miles from Omar's office is a village of former nomads, settled on land illegally carved out of the desert and largely ignored by army, police and officials, even though it is exactly the kind of place that could hold the seeds of their undoing.

Sand dunes nudged the outskirts of the settlement, camels grazed on thorny shrubs, and everywhere we received the same neutral stares and polite, shut-down answers. No one had seen the Taliban and security was excellent, although the Afghan army and police had not visited for months.

"I would recognise anyone with a weapon, but I haven't seen anybody," said Maulavi Ghulam Khan, one of the elders of the village, gesturing across the empty space in front of his home. "Can you ask the government to give us identity cards?" he pleaded when the marines asked if they could help. "They say we shouldn't be here even though we pay tax."

Marines suspected Haji Ghaffour had seen the Taliban. His mud and corrugated iron shack, festooned with plastic beads and tinsel and stacked with everything from washing powder to canned food, was one of the few places villagers could spend what little cash they might scratch from their salt-plagued fields. But not in afghanis, the national currency. Ghaffour was away and a son manning the shop demanded payment for chewing gum in Pakistani rupees, cash from across the nearby border where insurgents find sanctuary when not fighting on home turf.

The marines scanned the young man's fingerprints and irises for entry in a biometric database, where they found he was registered under four different names, with possible links to Taliban attacks.

But there was nothing firm enough for an arrest, so he walked away with just a warning. "We're watching you," one marine shouted after him, as he turned his back and rejoined a group of wary friends gathered outside the shop. Rampant corruption

Mistrust has grown from years of watching rampant corruption corrode government and security forces, the cynical manipulation and accidental triggering of ethnic and tribal tensions, and the difficulty of finding decent officials.

Garmsir is no exception, and this autumn the police, the army and the civilian government were all grappling with serious problems of capacity, competence or community relations.

Omar himself is the smart and affable son of an influential local elder who went into politics over his family's objections about the dangers, knows the district intimately and came second nationwide in a national civil service exam for district governors.

But he is officially only deputy to a 26-year old who disappeared to Kabul, embroiled in legal problems related to a team of "private bodyguards" he employed. The missing governor is just the most senior in a group of largely invisible district officials who Afghan and US sources said are keen to cash their pay cheques but unwilling to live in Garmsir.

"Improving governance in Helmand remains a challenge," a US government watchdog said in a recent report that warned the central government was not providing enough support in rural areas. "Corrupt hiring practices have allowed for many incompetent directors to remain in charge of the provincial and district officials."

The Afghan army, normally the most respected arm of government, is at loggerheads with Garmsir's elders because a sergeant attempted to elope with a 15-year-old girl whose father had promised her to a much older man.

Blowse said the incident was a temporary storm that overshadowed the army's impressive competence and independence. But it was a reminder of the language and cultural tensions that can hamper Afghan soldiers.

"They are not too happy about being stationed down here for the most part, and they view these people as inferior to them, culturally speaking," said Captain Andrew Yager, an adviser to Garmsir's commander, Lieutenant colonel Ghulam Mustaba. He praised the army's handling of a case that could easily have sparked violence.

Without doubt the biggest long-term security risk in Garmsir is the police. "I'd say we focus 90% of our effort on the police at this point, because I think the army has gotten to a point where they can sustain themselves, they can operate, they have depth to their leadership," said Blowse.

Just over a year ago, the district commander was taken out by a Taliban bomb, possibly with insider help. After two short-term replacements, a permanent commander arrived with a reputation for graft and within weeks his teenage "teaboy" had shot dead three marines.

That came as insider attacks by Afghan police and soldiers were rising nationwide. This year more than 60 foreigners have been killed by men they were trying to train or support, smashing the trust that is so critical to efforts to build up the Afghan security forces.

Mutual confidence in Garmsir has not been helped by the arrival of the latest district chief with a recoilless rifle, an armour-piercing weapon. The only armoured vehicles in Garmsir are the hulking MRAPs – mine resistant ambush protected trucks – driven by US marines, but the commander shrugged off all marine questions about the weapon's origin or purpose.

Nato and US influence over the police and army is also ebbing as they cut back on generous funds that for years paid for everything from 24-hour electricity to sunshades, in a bid to force an improvement in Afghan logistics systems.

"The last unit that was how they got things done, they were like, 'Hey, we'll give you this, and I need you to do this, this and this for me,'" said Lieutenant David Daugherty, commander of the team advising the police in Garmsir. "When we got here we didn't have the authority or money, or resources to give them anything; all we came with was experience and intangible stuff which wasn't good enough for them, so it was harder to influence them to do things."

The problems of Garmsir are not isolated or local. The police in many areas are corrupt and ineffective – so much so that in a recent poll about half of Afghans said they would be afraid to encounter a policeman. Dozens of district governor posts across the country sit empty. Tactical decision

Even the hard-won security improvements in Garmsir may not be entirely what they seem. There have been huge sacrifices by marines and their Afghan partners that have seriously diminished Taliban influence there, but the insurgent group may also have made a strategic decision to limit fighting in the district to keep up pressure in other areas.

They appear to be using Garmsir as a supply route to more volatile areas such as Sangin, where they initiate more fighting – kinetics in military jargon – said Lieutenant Carter Harris. Some districts in northern Helmand are among the most violent in Afghanistan, accounting for a high proportion of fighting, deaths and injuries nationwide.

"The Taliban seems willing to limit kinetics in Garmsir [because] there are lots of ratlines up north," Harris explained in company headquarters, set up in the shell of an agricultural college built by US engineers several decades ago, when they had more ambitious dreams for Afghanistan.

"The south is desert, so this to all extents and purposes is the border with Pakistan for them. They are able to move men and material north to more kinetic AOs [areas of operation], like Kajaki and Kandahar."

The insurgents may also just have taken a tactical pause to let enemies with more equipment and firepower than the Afghan police and army leave the battlefield.

Where once there were more than 60 marine bases, some with just a handful of men, that formed a chain of security dotted through Garmsir, now there are just two foreign camps, and those will probably be gone within a year as Nato countries rush to get their troops home.

The Taliban already make homemade bombs in sizes that will leave a US vehicle (mine-resistant, ambush-protected) largely unharmed but can rip apart a police ranger. And there are still Taliban threats and assassinations on prominent civilians, bombs in the roads and assaults at night.

Data from the Nato-led coalition shows "enemy-initiated attacks" – the main statistic they use publicly to assess violence – are down from 2011, but still higher than in 2009.

Senior commanders in Kabul last year were still talking about "reversing the momentum of the insurgency". On the ground troops are much more sanguine about what has been bought with foreign lives and money – a chance for the Afghan government, people and security forces to fight the Taliban themselves, without overwhelming odds against them, if they want to.

"They have the ability at this point to choose their future, that has been given to them," said Blowse. "It's their choice from there, but at least they have that choice."

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Afghanistan: An army prepares

Washington, Dec 23 : The US military has an expression – no man gets left behind. But with the withdrawal of coalition combat troops from Afghanistan in 2014 drawing closer, the men of the Afghan National Army (ANA) could be forgiven for feeling that they are indeed being abandoned.

In order to be able to leave and not have Afghanistan collapse immediately on their departure, the Americans announced at the end of 2009 that the size of the ANA would be increased to almost 200,000 soldiers.

A huge recruitment and training drive began, with new military training centres being set up around the country to facilitate the explosion in numbers.

In June 2012, slightly ahead of schedule, the ANA reached its quota. With great fanfare this was announced to the world as a sign that the army was ready to fulfill its obligations in protecting Afghanistan.

But the hard reality is that the ANA still depends on the US-led coalition for logistics, maintenance, intelligence-gathering and analysis, artillery and air support, medical evacuation (Medevac) and much, much more.

In fact, talk to any coalition troops on the ground and they will tell you the Afghans can fight, but only after they have been fed, clothed, armed and delivered to the battlefield by NATO.

Chief Warrant Officer Klaus Augustinus is a Danish mentor/advisor to the ANA and is on his third tour in Afghanistan. He openly admits that he was unimpressed with the ANA in the past, but now he feels they are making real progress. However, he says, it is the insistence on viewing the ANA through the prism of a Western army that leads to many problems.

“Always keep in mind that the Afghan way is the right way,” Klaus says. “We’re not going to do it any faster than they can cope with it. Otherwise we’re going to lose.”

There is no doubt that this huge new army is plagued with problems, but by far the biggest is the sheer turnover of men - currently running at about 30 per cent a year. In other words, the ANA has to find replacements for around 60,000 men every year.

There are many reasons for this attrition. The casualty rate is high, with more than 850 soldiers confirmed killed in 2012 alone, and a great many more wounded. As the ANA takes over the lead role in providing security throughout Afghanistan in 2013, both figures are expected to increase dramatically.

Part of this will doubtless be due to more fighting, but only barely adequate medical support and the likely withdrawal of full airborne Medevac services will not help either.

Currently the ANA relies on the coalition helicopters to take its wounded to hospital quickly. If not available, the ANA will have to use ground transportation to move badly injured men, increasing the time it takes to get them to a place of proper care and significantly reducing survival rates.

Failure to re-enlist is also a big problem. Right now about one-quarter of all recruits decline to sign up for a further tour of duty contract after their initial three-year commitment is completed.

Then there is desertion – a concern to all army commanders of a volunteer army during a war, but something to which the ANA currently seems especially vulnerable. The Afghan defence ministry admits to losing between 7-10 per cent of its troops every year in this way.

When we spoke to General Karimi, the ANA chief of staff, he told us that desertion is much reduced and that measures are in place to reduce it further. That may be true, but no one knows exactly what will happen when the ANA begins bearing the brunt of the fight against the Taliban in a little over a year’s time.

So why are desertion rates so high? We managed to find some deserters (it is not hard to track them down) and they cited three main reasons: corruption and abuse of power by officers, lack of care for troops and probably most significantly, Taliban intimidation and threats.

Naim was in the ANA for two-and-a-half years. His family had not wanted him to join the military, but they were poor, and so in order to help out he signed up. He says he actually enjoyed his time in the army and he saw a lot of action in the turbulent east of the country. But one day he was wounded in a firefight, shot in the knee, and everything changed. He says it was an American soldier who rushed to his aid, and gave him immediate treatment. Within 10 minutes he was on a US Medevac helicopter, and spent the next month being treated by US medical staff – for which he is grateful.

But from the time he was injured, he says, he was abandoned by his own army. No one, not even his platoon NCOs (non-commissioned officers) or commander, came to check on him, to see how he was doing or to ask whether he was receiving appropriate care. Worse still, nobody from the ANA bothered to tell his family where he was.

After a month, he was transferred to another facility and was able to call home. But by this time, having repeatedly asked for information on their missing son, his parents had been told that he was dead and had held funeral rites. Though delighted and relieved to hear he was safe, they were understandably furious about ANA’s callous disregard. When Naim was released from hospital two months later, his father forbade him from returning to his unit. It is a story in line with an often-heard complaint from former recruits, who say the value that the coalition armies place on the health and general wellbeing of their troops is rarely, if ever, replicated in the Afghan force.

But in truth, Taliban threats against individual ANA soldiers - and more insidiously against their families - are probably a much bigger cause for desertion than their own side’s institutional indifference. We spoke to one deserter, identified in our film as ‘Amir’, who had gone absent from his unit only a few weeks earlier. He told us that the Taliban had visited his family home several times and told them that if he did not leave the army, they would cut off his head. When that did not work, they extended the threat to the whole family and he had no choice but to do as they ordered. He is still furious about it, but said he had to put his relatives first.

Of course, it is not the only way the Taliban have sought to disrupt the buildup of the ANA. It is now generally accepted that in the rush to accrue the huge numbers needed, the ANA was far from effective in vetting volunteers – and that is a failing that the insurgents have done their best to exploit.

Although it is by no means the only cause, it may well have contributed to a rise in so-called 'green on blue' attacks over the last 12 months. So far, more than 50 coalition soldiers have been killed in 2012 in these insider incidents, when a member of the Afghan security forces, or an infiltrator dressed in a uniform, turns his weapon on his unsuspecting Western allies. The problem is, it is something that is almost impossible for coalition troops to guard against when working alongside Afghans, and worse, every safeguard that is put in place erodes trust between the two groups.

Of course, the perception in the West that the Taliban is behind all of these attacks is somewhat misplaced. Insurgents routinely claim each and every 'green on blue' attack as a planned operation, but the reality is that many are the result of a real or perceived slight, or an argument that just went too far. After extensive questioning of the attackers (or at least those that are not gunned down immediately) the Afghan authorities say approximately 25 percent of the perpetrators have provable links to the Taliban, but the rest of the incidents are down to other factors.

Whether this is true or not, the fact that some attacks are orchestrated by the Taliban is enough to add to the general Western clamour to get out of an ungrateful Afghanistan as soon as possible – which means they have fulfilled their purpose.

There is no doubt that this huge new army is plagued with problems, but by far the biggest is the sheer turnover of men - currently running at about 30 per cent a year. In other words, the ANA has to find replacements for around 60,000 men every year.

There are many reasons for this attrition. The casualty rate is high, with more than 850 soldiers confirmed killed in 2012 alone, and a great many more wounded. As the ANA takes over the lead role in providing security throughout Afghanistan in 2013, both figures are expected to increase dramatically.

Part of this will doubtless be due to more fighting, but only barely adequate medical support and the likely withdrawal of full airborne Medevac services will not help either.

Currently the ANA relies on the coalition helicopters to take its wounded to hospital quickly. If not available, the ANA will have to use ground transportation to move badly injured men, increasing the time it takes to get them to a place of proper care and significantly reducing survival rates.

Failure to re-enlist is also a big problem. Right now about one-quarter of all recruits decline to sign up for a further tour of duty contract after their initial three-year commitment is completed.

Then there is desertion – a concern to all army commanders of a volunteer army during a war, but something to which the ANA currently seems especially vulnerable. The Afghan defence ministry admits to losing between 7-10 per cent of its troops every year in this way.

When we spoke to General Karimi, the ANA chief of staff, he told us that desertion is much reduced and that measures are in place to reduce it further. That may be true, but no one knows exactly what will happen when the ANA begins bearing the brunt of the fight against the Taliban in a little over a year’s time.

So why are desertion rates so high? We managed to find some deserters (it is not hard to track them down) and they cited three main reasons: corruption and abuse of power by officers, lack of care for troops and probably most significantly, Taliban intimidation and threats.

Naim was in the ANA for two-and-a-half years. His family had not wanted him to join the military, but they were poor, and so in order to help out he signed up. He says he actually enjoyed his time in the army and he saw a lot of action in the turbulent east of the country. But one day he was wounded in a firefight, shot in the knee, and everything changed. He says it was an American soldier who rushed to his aid, and gave him immediate treatment. Within 10 minutes he was on a US Medevac helicopter, and spent the next month being treated by US medical staff – for which he is grateful.

But from the time he was injured, he says, he was abandoned by his own army. No one, not even his platoon NCOs (non-commissioned officers) or commander, came to check on him, to see how he was doing or to ask whether he was receiving appropriate care. Worse still, nobody from the ANA bothered to tell his family where he was.

After a month, he was transferred to another facility and was able to call home. But by this time, having repeatedly asked for information on their missing son, his parents had been told that he was dead and had held funeral rites. Though delighted and relieved to hear he was safe, they were understandably furious about ANA’s callous disregard. When Naim was released from hospital two months later, his father forbade him from returning to his unit. It is a story in line with an often-heard complaint from former recruits, who say the value that the coalition armies place on the health and general wellbeing of their troops is rarely, if ever, replicated in the Afghan force.

But in truth, Taliban threats against individual ANA soldiers - and more insidiously against their families - are probably a much bigger cause for desertion than their own side’s institutional indifference. We spoke to one deserter, identified in our film as ‘Amir’, who had gone absent from his unit only a few weeks earlier. He told us that the Taliban had visited his family home several times and told them that if he did not leave the army, they would cut off his head. When that did not work, they extended the threat to the whole family and he had no choice but to do as they ordered. He is still furious about it, but said he had to put his relatives first.

Of course, it is not the only way the Taliban have sought to disrupt the buildup of the ANA. It is now generally accepted that in the rush to accrue the huge numbers needed, the ANA was far from effective in vetting volunteers – and that is a failing that the insurgents have done their best to exploit.

Although it is by no means the only cause, it may well have contributed to a rise in so-called 'green on blue' attacks over the last 12 months. So far, more than 50 coalition soldiers have been killed in 2012 in these insider incidents, when a member of the Afghan security forces, or an infiltrator dressed in a uniform, turns his weapon on his unsuspecting Western allies. The problem is, it is something that is almost impossible for coalition troops to guard against when working alongside Afghans, and worse, every safeguard that is put in place erodes trust between the two groups.

Of course, the perception in the West that the Taliban is behind all of these attacks is somewhat misplaced. Insurgents routinely claim each and every 'green on blue' attack as a planned operation, but the reality is that many are the result of a real or perceived slight, or an argument that just went too far. After extensive questioning of the attackers (or at least those that are not gunned down immediately) the Afghan authorities say approximately 25 percent of the perpetrators have provable links to the Taliban, but the rest of the incidents are down to other factors.

Whether this is true or not, the fact that some attacks are orchestrated by the Taliban is enough to add to the general Western clamour to get out of an ungrateful Afghanistan as soon as possible – which means they have fulfilled their purpose.

In Chicago in early 2012, Barack Obama, the US president, described the plans to withdraw from Afghanistan as “irreversible”.

But the fortunes of the ANA are very much reversible, and if the army collapses, or fractures along ethnic lines, Afghanistan’s last line of defence will crumble and chaos will engulf the country once again.

From what we witnessed in the making of this film, it is hard to see how the Afghan army, however dedicated, can achieve what the far greater resourced “Coalition of the Willing” has failed to do over the past 11 years.

And yet, despite this, morale among ANA troops - or at least among many of those we spoke to - is higher than it might be expected to be.

Although they have been playing a support role in the coalition’s fight against the Taliban up until now, Afghan units have had their successes and on occasion ANA troops have displayed notable courage and determination in the field. This kind of commitment may not be enough to prevail against the Taliban in any long drawn-out fight, but once US troops leave and the dynamics of the war change (as they must), it may just be sufficient to hold the line for a time, and allow Afghanistan to find a way to peace through other means.


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News Analysis: Harsh winter adds to Afghans' economic woes

Kabul, Dec 23 : The worsening economy and the continuing threat by militant groups have dampened the Afghan spirit to fight back and rebuild their country, particularly now that they are experiencing one of their worst winters.

"Another harsh winter is coming and I don't have enough money to buy even firewood after buying foodstuff at skyrocketing prices, " said Matiullah, 35, who, like many Afghans, goes only by one name.

"The free market economy has frustrated the people. It is not working in Afghanistan. The sellers have increased the price of basic items such as firewood and natural gas due to the recent devaluation of Afghanis against foreign currencies. The government has failed to check prices especially during this harsh winter," Matiullah, father of five, said.

The economy of the war-torn country has improved significantly since the fall of Taliban regime in late 2001, mainly as a result of the multi-billion dollars fund donated to the embattled country by the international community.

However, Afghanistan still remains one of the poorest and least developed countries in the world and has remained dependent on foreign aid.

"It is really a burden for all Afghans particularly people living in suburban areas to buy materials for making their houses warm in the harsh winter. At the same time we have to buy foodstuffs and keep some money for medicines and hospital expanses, " Matiullah said, adding that the dusty weather and pollution have caused his children and wife to suffer from respiratory diseases throughout the winter.

"Business is bad. The high dollar is hurting firewood business this year. Winter is the only season for us to sell wood. The costumers frequently come here in the market. They negotiate the price but leave without buying wood or just buying a small amount, " a wood seller, Mohammad Usman, said.

According to the figures released by Da Afghanistan Bank, the Afghan central bank, one U.S. dollar was traded for 52.15 Afghanis, while one U.S. dollar equaled 48.71 Afghanis in Dec. 12 last year.

The lowest exchange rate for Afghanis since the beginning of the year was about 55.50 late last month.

The price of one metric ton of firewood is about 12,900 Afghanis, or about 247 U.S. dollars, in Kabul markets.

Although Taliban regime had been driven out of power in late 2001 and open fighting is finished, the restoration of a durable peace is still a dream for many Afghans as anti-government militants continue to carry out suicide attacks and roadside bombings that kill innocent civilians.

In Kabul, some 80 percent of the population lives in unplanned settlements where poor sanitation and lack of access to potable water is common and nearly all of the buildings have no central heating system.

Winter temperatures particularly in central and northern parts in Afghanistan could fall to around -26C.

"There is advancement in heating system around the world. We are still using the metallic stoves producing too much smoke. We know that they cause weather pollution and we are losing greeneries by cutting trees but we cannot afford to buy natural gas," Matiullah said.

The price of one kilogram of natural gas is 75 Afghanis against 45 nearly one month ago, he said.

Although there are no official statistics, it is believed that some nine million Afghans live under poverty line and rely on only one U.S. dollar income daily.

On top of this, there has been a 60 percent increase in the prices of food items in Afghanistan since 2007, according to officials. 

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State: Big surge in Calif. smokeless tobacco sales

Sacramento, Dec 23: While cigarette sales have plunged, sales of smokeless tobacco products have surged in the past decade in California, with use among high school students especially leaving state public health officials concerned, according to a state report.

The report released by the Department of Public Health says the amount spent on smokeless tobacco products has nearly tripled in 10 years, from $77 million in 2001 to about $211 million in 2011.

Among high school students, smokeless tobacco use has increased from 3.1 percent of students in 2004 to 3.9 percent in 2010, the report said.

Chewing tobacco and snuff remain the main smokeless products sold in the state, but newer products like the small, dissolvable packets known as snus have seen an increase in popularity, promotion and availability. Even smaller and more discreet dissolvable products like orbs and strips are becoming popular in other states and are likely to arrive in California soon.

Colleen Stevens, branch chief of the tobacco control program for the Department of Public Health, said the newer products can go unnoticed and even be used in classrooms because they closely resemble breath mints and strips.

"Some of these products are really flying under the radar," Stevens told the Los Angeles Times.

Stevens said there is far less research on the newer smokeless tobacco products than on chewing tobacco and cigarettes, and there are fewer restrictions on their marketing and advertising.

Illegal sales of all forms of tobacco to minors increased in the past year, reversing a downward trend since the mid-1990s, according to the report.

The highest share of illegal sales to minors came in unusual outlets like discount stores, delis and discount shops where the owners may not be entirely aware of the laws and penalties and can escape the notice of law enforcement.

"Kids are smart," Stevens told the Times. "All it takes is one place that is selling tobacco and it goes through the grapevine and kids know where that store is."

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