2 - The Michigan Daily - Wednesday, November 26, 2003 NATION/WORLD Medicare reform bill passes narrowly NEWS IN BRIEF WASHINGTTO)N (AP) - Thes.everail of the Fhill's nmost contnvse'ria1 l1V1Lil V 1v1 l11 ) 1116 auvFiai VI LIIV U111J 111VJL L:V11LIMCIS1Q.1 Republican-controlled Congress sent President Bush historic Medicare legislation yesterday, combining a new prescription drug benefit with measures to control costs before the baby boom genera- tion reaches retirement age. Bush is expected to sign the bill with a flourish, then trumpet its enact- ment during his bid for re-election next year. "Because of the actions of the Congress, the actions of members of both political parties, the Medicare system will be modern and it will be strong," he said in Las Vegas shortly after lawmakers broke years of grid- lock on the issue. But within hours of a 54-44 Senate vote, Senate Democratic leader Tom Daschle introduced legislation to repeal provisions and to allow the importation of lower-priced prescription drugs from Canada and Western Europe. "This debate is not over, it's just beginning," said the South Dakota Democrat. Apart from a new prescription drug benefit, the legislation invites private firms to sell insurance coverage to 40 million Medicare beneficiaries. While some supporters praised the bill in glowing terms and some critics denounced it with equal vehemence, many lawmakers said the far-reaching legislation had confronted them with a difficult choice. "This was not an easy vote for me," said Sen. Dianne Feinstein of California, one of 11 Democrats who supported with the bill on final passage. "I know there are doubters out there. ... All I say "Because of the actions of the Congress, the actions of members of both political parties, the Medicare system will be modern and it will be strong:' - President Bush to them is, give it a chance to work." The complexity of the 681-page, $395 billion measure - and the two-year delay in implementing the new drug coverage - have made it subject to competing claims and uncertain estimates. For seniors obtaining drug coverage through a stand-alone plan in 2006, for example, officials estimate a benefit with a $35 monthly premium and a $250 annual deductible, followed by 75 percent coverage up to $2,250 in costs. There would be a break in cover- age over that level until costs reached $5,100 - a gap of $2,850 - before benefits resumed and began paying 95 percent of remaining costs. But an official forecast by Congress' budget experts envisioned a steady increase in premiums and deductibles as well as a widening of the coverage gap in the following years, with insurance payments growing as well. NEW DELHI4" India, Pakistan agree to indefinite cease-fire India and Pakistan began a cease-fire between their armies at midnight yester- day - the first such accord in 14 years. The agreement, however, did not cover Indian security forces and Islamic mili- tants in Kashmir, and there was no indication how long it would last or how effec- tive it would be. The two nations' armies - which trade machine-gun and mortar fire almost daily - would observe the cease-fire along their entire frontier, the governments said. That includes the international border that covers several western states in India, the Line of Control dividing Jammu-Kashmir, and the frontier at the Siachen Glacier. The start of the cease-fire coincides with the Eid-al-Fitr festival that ended the Islamic holy month of Ramadan. In Islamabad, Pakistan Foreign Ministry spokesman Masood Khan confirmed military chiefs agreed on the cease-fire, which he said was indefinite and "a posi- tive development." Neither side specified how long the truce would last. India said Monday an enduring cease-fire would depend on Pakistan ending the infiltration of Islamic militants into India's portion of Kashmir. The largest Pakistan-based militant group battling in India's portion of the divided Himalayan province said its men would keep on fighting. J 19 T T d"14 Attacks on U.S. OTA, igeria Liberian warlord expected to face charges AP PHOTO An Israeli security guard, seen behind Palestinians, stands next to a new section of the. separation barrier Israel is building between Israel and Palestinian areas. Paestinians, Iraelis continue to argue over violence, settlements RAMALLAH, West Bank (AP) - Palestinian officials plan to secure a pledge from militant groups next week to halt all attacks against Israel, which they will present along with a demand for full implementation of the U.S.-backed "road map" peace plan, the top Palestinian negotiator said yesterday. The comments by S.aeb Erekat, which were welcomed by Israel, were the latest sign of progress in efforts to halt three years of violence and resume full-fledged peace talks. Jewish settlers are proposing their own plan, which calls for dismantling the Palestinian Authority and incorporating the West Bank into Israel. The plan, which has little chance of success, demonstrated the many pressures on Israeli Prime Minister Ariel Sharon. Palestinian factions, In Washing Bush admin decided yes reduce U.S. guarantees1 Palestinians must dismantle the militant groups, but they have avoided such a move, say- ing that would risk civil war. While Israel has not formally committed to a cease-fire, officials appear to have eased off the insistence that Palestinian militant groups be dis- armed. And its response to two fatal attacks in the last week has been subdued. Momentum has seemed to be building toward a renewal of talks since Palestinian Prime Minister Ahmed Qureia formed a government two weeks ago. But efforts to arrange a ltheQureia-Sharon summit have ton, stumbled. nilstration In an interview with The Associated Press, Qureia sterday to insisted Israel show move- loan ment on Palestinian demands, including halting to Israel. construction of a West Bank security barrier, for the meeting to take place. Sharon said he will not accept preconditions. Sharon, however, came under more pressure yesterday. In Washington, the Bush administration decided yesterday to reduce U.S. loan guaran- tees to Israel by $289.5 million as a way of registering its disapproval of Israeli actions on the West Bank. The cut will be made from $9 billion in U.S. guarantees over three years. The guarantees are designed to help the battered Israeli economy by making it easier for Israel to acquire loans at favorable rates. The sum represents the cost of part of the West Bank barrier along the route that the United States has criticized. Israel says the barrier is needed to keep out suicide bombers; the Palestinians call it a land grab. soldiers fall as violence against Iraqis increases BAGHDAD, Iraq (AP) - With U.S. troops heavily armed and bunkered behind concrete and razor wire, guerrillas are pointing their guns at softer targets like Iraqi police and civilians, top U.S. military and civilian officials said yesterday. American officials expect attacks on Iraqis working with the coalition to surge as the U.S.-led administration begins handing power to local leaders. After dark, three large explosions shook the center of Baghdad from the city's western half. The blasts trig- gered a warning siren in the "Green Zone" housing the U.S. headquarters. A coalition spokeswoman said the blasts occurred outside of the zone at a police station, a bus station and a third, unknown location. She had no information on casualties. The area is less than a half-mile from the "Green Zone." "The security situation has changed," said top U.S. admin- istrator Paul Bremer at a press conference with Gen. John Abizaid, the chief of the U.S. Central Command whose area of responsibility includes Iraq. Bremer said coalition troops would do their best to protect upcoming leadership debates and caucuses. "We have to anticipate that there will be a level of terror- ism in the months ahead," he said. "As the process of democracy moves forward over the next several months, they may try to attack the institutions of democracy." Abizaid said the number of daily attacks on coalition forces dropped by about half over the past two weeks. But another U.S. military official, Col. William Dar- ley, said attacks peaked at more than 40 per day about two weeks ago and have since dropped to about 30 per day - about the same as in October and well over the number in August and September. More than five dozen U.S. troops were killed by hostile fire in November, more than any other month since the end of major combat in Iraq on May 1. Since operations began in Iraq, 297 U.S. service members have died of hostile action, including 183 since May 1 when President Bush declared an end to major fighting. Hotspots Fallujah and Ramadi, two Sunni-dominated cities west of Baghdad, have seen fewer attacks recently, but unrest has persisted in the capital and spread north to Mosul and Kirkuk. The guerrillas, whom Abizaid described as regional cells of ex-Baath Party loyalists, have launched devastating strikes on the Iraqi police. The intent, the officials said, is to intimidate Iraqis. "If they can't reach the coalition, they go after the people they can touch," Darley said. Those attacks include two car bombs at police stations last weekend, the assassination Saturday of a police colonel and the killing Sunday of a police chief. The shift in guerrilla targets follows a decision by the U.S. command to aggressively pursue insurgents before they can strike. Speaking in Washington on yesterday, Defense Secre- tary Donald H. Rumsfeld cited a long list of statistics on the results of recent U.S. efforts to defeat the insur- gency - including a rare reference to numbers of opposition fighters killed. He said that last week alone, U.S.-led forces conducted nearly 12,000 patrols and more than 230 raids. LONDON U.N. reports AIDS epidemic spreading The HIV/AIDS epidemic contin- ues its devastating march across the globe, with more deaths and infec- tions this year than ever before, according to a U.N. report released yesterday. The report by UNAIDS, the U.N. agency responsible for coordinating global efforts to fight the disease, said the epidemic killed more than 3 million people in 2003. Around 5 million more acquired the human immunodeficiency virus, or HIV, bringing the number of people living with the virus to between 34 million and 46 million. "This is an epidemic that at the start was a white middle-class gay man's dis- ease. Today, if you use a stereotype, the face of AIDS is a young woman from Africa," Peter Piot, executive director of UNAIDS, told a news conference in London. LOS ANGELES Jackson's attorney threatens accusers Michael Jackson's attorney vowed to "land like a ton of bricks" on anyone who attacks the singer and charged that the molestation allegations against him were motivated by money, saying Jack- son "is not going to be a pinata." "If anybody doesn't think based upon what's happened so far that the true motivation of these charges and these allegations is anything but money and the seeking of money, is living in their own Neverland," attorney Mark Gera- gos said, referring to the singer's story- book playland. Geragos' pledge to mount a defense against those who damage Jackson's reputation followed revelations that he and the entertainer were secretly video- taped while flying on a private jet. NEW YORK Concorde arrives at New York museum Six years after setting a speed record for a commercial jet crossing the Atlantic, a British Airways Con- corde took a slow boat yesterday up New York harbor to its new home at a waterside museum. Lashed to the deck of a gray barge, the slender white jetliner rode under the "Verrazano Bridge and past the Statue of Liberty, made a brief pirouette for the television cameras off lower Manhattan and moved majestically up the Hudson to the Intrepid Sea Air Space Museum. The aircraft, one of 13 Concordes, will become a permanent exhibit. - Compiled from Daily wire reports. Nigeria's influential president set tough terms yesterday for two African pariahs, pledging to "persuade" indicted war criminal Charles Taylor to surrender for trial if Liberia asks and to bar Zimbabwe's president from an international summit. Olusegun Obasanjo's comments came in a rare interview by the leader of Africa's most populous nation, conducted under a shade tree at his farm amid strutting peacocks and a sunning baby crocodile. The Nigerian leader has strongly resisted U.S. congressional pressure to turn ousted Liberian president Taylor over for prosecution on a U.N.-backed indictment for war crimes committed in Sierra Leone. A former warlord blamed in much of the recent bloodshed in West Africa, Tay- lor has lived in exile in southern Nigeria since August, when he fled under interna- tional pressure and a rebel siege of Liberia's capital, Monrovia. The Liberian government that succeeded Taylor has not said it wants him for trial. Instead, interim leader Gyude Bryant, appointed under an Aug. 18 peace deal, has said Taylor should go to neighboring Sierra Leone to face charges there. - including Hamas and Islam- ic Jihad, have agreed to attend a conference beginning Dec. 2 in Cairo, Egypt. The groups, which have carried out scores of deadly attacks on Israelis, are expected to commit to a cease-fire then, Erekat said. Whether a truce can last will depend on Israel's response, he added. "I think there is a very clear- cut obligation on the Palestinian side, saying that we will stop violence against Israelis," he said. "Right under that, it says Israelis will stop vio- lence against the Palestinians. ... That is the key." The road map calls for a series of steps leading to an independent Palestinian state by 2005. Israel is required to halt settlement activity in the West Bank and Gaza Strip, which the Palestinians claim for their state, and with- draw from autonomous areas occupied during the fighting. WWW.MHGANDAILYUM The Michigan Daily (ISSN 0745-967) is published Monday through Friday during the fall and winter terms by students at the University of Michigan. One copy is available free of charge to all readers. Additional copies may be picked up at the Daily's office for $2. Subscriptions for fall term, starting in September, via U.S. mail are $105. Winter term (January through April) is $110, yearlong (September through April) is $190. University affiliates are subject to a reduced subscription rate. On-campus subscriptions for fall term are $35. Subscrip- tions must be prepaid. The Michigan Daily is a member of The Associated Press and The Associated Collegiate Press. ADDRESS: The Michigan Daily, 420 Maynard St., Ann Arbor, Michigan 48109-1327. E-mail letters to the editor to letters@michigandaily.com. The University of Michigan College of Literature, Science, and the Arts presents a public lecture and reception Between Commitment and Consumerism: Art in Postwar Europe and America Al ex Potts Max Loehrr Collegiate Professor of History of Art .. . . . . . . . . ',iy , ' R ECONOMY Continued from Page 1. Bush, who wants the economy on firm footing as he heads into the 2004 re-election campaign, said the GDP report shows "the economy of ours is reacting to our policy. ... The tax relief we passed is working." Democrats, however, blame Bush's poor handling of the economy for the loss of 2.3 million jobs since he took office in January 2001. In October, the unemployment rate improved fractionally, to 6 percent, as the economy added jobs for a third straight month. Steady improvements in job creation and in capital investment are crucial ingredients for the economic recovery to be sustained, economists said. Consumers, meanwhile, continue to do their part to keeping the economy going. They boosted spending in the third quarter at a 6.4 percent rate. from the 6.6 percent rate previously estimated. Especially encouraging was a 18.4 percent growth rate in business invest- ment in new equipment and software in the third quarter. That was even stronger than the 15.4 percent pace previously estimated and up from 8.3 percent in the second quarter. Spending on residential projects grew at a whopping 22.7 percent pace in the third quarter, also better than the 20.4 percent first estimated and up from 6.6 percent in the second quarter. Fewer cuts to business inventories in the third quarter resulted in a 0.16 per- centage-point increase to GDP in that three-month period, compared with a 0.67 percentage-point reduction to GDP as previously estimated. Another factor in the upward revision to GDP in the third quarter: slightly stronger spending by state and local governments. These governmental bod- ies boosted spending at a 2.3 percent NEWS Shabina S. Khatri, Managing Editor 763.2459, newsomichigandaIy com EDITORS: C. Price Jones, Kylene Kiang, Jennifer Misthal, Jordan Schrader STAFF: Farayha Arrine, Jeremy Berkowitz, David Branson, Ashley Dinges, Adhirej Dutt, Sara Eber, Victoria Edwards, Margaret Engoren, Cianna Freeman, Alison Go, Michael Gurovitsch, Aymar Jean, Carmen Johnson, Michael Kan, Andrew Kaplan, Emily Kraack, Tomislav Ladika, Evan McGarvey, Naila Moreira, Jameel Naqvi, Kristin Ostby, Mona Rafeeq, Adam Rosen, Karen Schwartz, Maria Sprow, Dan Trudeau, Trista Van Tine, Ryan Vicko OPINION Aubrey Henretty, Zac Peskowitz, Editors 763.0379, opinlon@michigandally com ASSOCIATE EDITORS: Daniel Adams, Sravya Chirumamilla, Jason PesHck, Jess Piskor STAFF: Nicole Avenia, Benjamin Bass, David Betts, Darryl Boyd. 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