Darby Report 281 Sunday 12 October 2003

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TRAGIC ANNIVERSARY

On the anniversary of the Bali bombing atrocity, our hearts go out to all the survivors and to all who lost loved ones, friends and colleagues; and we salute all the medical, military and civilian personnel who saved lives and mended bodies beyond all expectation.  We join with Prime Minister John Howard in thanking the people of Bali, Australia’s true friends.

 

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CONTENTS OF DARBY REPORT 281 To return to this menu: Ctrl/Home

(DOUBLE) CLICK ON THE ITEM YOU WISH TO READ

Hernando De Soto – Ron Manners

Passing of Warringah’s philanthropist, Gordon Jones

Lead letter: Ambitions of Malcolm Turnbull (James Harker-Mortlock)

Lia Loover B.E.M. is recovering

Morgan Tsvangirai on Daily News Closure

EDDIE CROSS: Underbelly of Mugabenomics & Fundamental Freedoms

Cathy Buckle on Zimbabwe

WOMEN OF ZIMBABWE ARISE (WOZA)

Bring on the Capitalists

Death of Czech Hero

The French

Taiwan ROC and the United Nations

Letter from a US Marine in Iraq

Oxfam Laid Bare

Letters to Editor

Still a Very Stupid Idea – The Scully-Barr Spit Bridge Plan

Work in Progress: 200 Poets of the People (6 files totalling 925pp)

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üThomson Ford      ü “Thorns Among The Briar Roses” üWork of the Salesians

 

 

This issue’s quotation, helpfully selected by John Woods:

Government's view of the economy could be summed up in a few short

phrases.  ‘If it moves, tax it. If it keeps moving, regulate it. And if it stops

moving, subsidize it.’

-- Ronald Reagan (1986)

 

 

 

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The Darby Report may be distributed widely by any medium. Michael Darby is willing to address any gathering in the cause of individual liberty, is available to perform poetry in an honorary capacity at schools and nursing homes, and may be called upon as an expert compère and popular entertainer for charity fundraisers of all kinds. He also likes to make a quid, and gives great value as a performance poet and comic, so employ Darby as a featured performer and superb motivator at conferences and conventions.

The tireless North American correspondent for the Darby Report is Erich Kern. Opera singer Andrew Heggie is our man in Manchester, Eric Bruckner provides the French connection, Jamie Whitelaw writes from South Africa, Dr JJ Ray is our erudite Queensland source and Hal G.P. Colebatch is the wise man of the West.  The Darby Report frequently carries material from Zimbabwe´s courageous Eddie Cross, Cathy Buckle, Paul Themba Nyathi and Jenni Williams. Kerry Collison is our authority on Indonesia and South East Asia. Unsigned articles in the Darby Report are the work of Michael Darby. Views expressed in the Darby Report are not necessarily shared by any organisation, and Michael Darby writes as an individual, not as a representative of the Liberal Party.

 

Passing of Gordon Jones

At St Andrew’s Church Manly NSW on Tuesday 7 October 2003, former Warringah Shire President Gordon Jones, a local giant of humanitarianism and good works, was farewelled by Doris, his “precious darling” wife of 57 years, by his three sons, by his grandchildren and by a great number of friends and admirers. 

Gordon entered the building business after his return from active service, and rapidly earned a favourable professional reputation in the Manly area for the high quality of his work and his enthusiasm for employing and training apprentices.

For fifteen years Gordon served on the Warringah Shire Council, and for three successive terms he was elected by Warringah Councillors to lead them as Shire President.  Gordon Jones never accepted a salary, stipend or fee of any kind for his local government work, and similarly he always acted in an honorary capacity in the course of his many humanitarian activities, including his years of service on the Manly Ambulance Board followed by an extraordinary 25 years on the Central District Ambulance Board.  It was Gordon Jones who originally proposed the establishment of the Mona Vale Hospital, and he was the first Chairman of the Hospital Board.

Gordon’s fifty years of service to Surf Life Saving was reflected in his appointment as Patron of two Clubs, Freshwater SLSC and South Curl Curl SLSL, each of which Clubs annually honour their outstanding Surf Life Saver with the award of a “Gordon Jones Honour Blazer”.

In recent years Gordon Jones, a man of the highest personal standards, has been one of the innocent victims of a vicious and dishonest propaganda campaign against the Warringah Council.  Gordon was a gentleman of such beneficence that he may have forgiven the perpetrators.   However, the cowards who falsely tried to undermine the reputation of this scrupulously honest and compulsively generous man, while he was too ill to defend himself, should not imagine that their political crimes against decency will be forgotten.

Gordon Jones achieved more in every year of his adulthood than many people achieve in a lifetime.  We’ll remember Gordon whenever we encounter one of his worthy descendants, admire one of his buildings, greet one of his hundreds of former employees or get to know one of the countless individuals who through their involvement in the medical system or in a range of sports have gained from the generosity of Gordon’s great heart.

 

HERNANDO DE SOTO

 

Welcoming Speech By Ron Manners

Notre Dame University, Fremantle, 15TH September, 2003

 

Good evening friends & distinguished guests, with a special welcome to the Honourable U.S. Consul, the Honourable Japanese Consul and to Gina Rinehart.

 

The written invitation to tonight’s event contained a magnificent background document on Lang Hancock, in whose memory this lecture series is named.  Those of us who were fortunate enough to have known Lang Hancock personally, will understand when I say that Lang planted many seeds amongst those whom he touched.

 

Lang had a relentless curiosity that he passed onto many people, myself included.  This relentless curiosity causes us to seek out people who have visionary ideas that we admire and wish to understand further.

 

Two years ago, with great expectation I attended an Atlas Foundation meeting in San Francisco.  It was called An Evening With Milton Friedman, a special celebratory event around the time of Milton Friedman’s 89th birthday.

 

A special guest speaker at that event was to be Hernando de Soto, whom I had always wished to meet as his ideas have particular relevance to Australia.  Instead of a personal appearance, Mr. de Soto sent a video recording, the next best thing and certainly much better than nothing.

 

However, we are fortunate tonight that he actually appears in person and I wonder what that proves?   Could it prove that George Kailis has more influence than Milton Friedman?  If so, George, that is the supreme compliment to you.

 

Tonight’s printed program also includes a very detailed background document on Hernando de Soto.  Mr de Soto’s latest book, The Mystery of Capital (Why capitalism triumphs in the West and fails everywhere else), which last week reached No. 6 on the U.S. best selling non-fiction list, contains lessons for Australia where we see many unintended consequences of the destruction of property rights through either Native Title legislation or other “stakeholder activism” undermining the property rights of the productive sector.

 

The intention of such redistributions may have been well-meaning but the outcome is the severe diminishing of the level of investment, so in the end we are all losers.

 

Since publishing The Mystery of Capital, Hernando has increased the number of world Heads of State that he now advises.  This now totals 25.  Mr de Soto doesn’t deal with Vice Presidents or bureaucrats; he deals directly with Presidents and Prime Ministers.  He has just flown in from Sweden and after this evening’s talk will be flying direct to Beijing.

 

Western Australia is particularly fortunate as this will be Hernando’s only appearance in Australia during  his 24 hour stopover.

Hernando, I hope that your message is widely heard in Australia and that it helps us to lift our game.  I look forward very much to your comments and welcome you here tonight and to the podium.

Lia Looveer BEM

Lia Looveer BEM, lifelong liberty campaigner, Estonian community leader and long-serving  Secretary of the Captive Nations Council of New South Wales, is recovering at home after being hospitalised for a heart condition.  Lia’s many friends and admirers are invited to write to her at 3 Treelands Close, Galston 2159.

 

Daily News Closure

Morgan Tsvangirai

30 September 2003

 

Early this month, the Mugabe government closed down the Daily News, the only alternative voice in the form of a daily newspaper in Zimbabwe. Thousands of people have been thrown out of work. The company has lost billions of Zim dollars in revenue at a time when our economy is already on its knees. This newspaper was read by about a million people daily. It provided valuable space for diverse and different views. The closure of the newspaper merely extends the democratic deficit in this country and creates an environment of intolerance and fear. The Zimbabwean public media lost all credibility a long time ago and degenerated into a fully-fledged propaganda machine of Zanu PF. State newspapers and radio and television mirror events in our country in a manner that is devoid of any fairness and objectivity.

 

Since the formation of the MDC in September 1999, almost a year after the Associated Newspapers of Zimbabwe group was established, the Daily News has always been in trouble with Zanu PF and the government.

 

You will recall that the newspaper was never allowed to circulate freely in small towns and in the rural areas. You will recall television pictures of so-called war veterans burning copies of the newspaper in Mutoko, Rusape, Shamva and other centres. The company’s property was being destroyed in the full view of the police. We, in the MDC, received numerous reports of travellers and civil servants being victimised at illegal roadblocks mounted specifically to check on readers of the Daily News in these centres.

 

In April 2000, the newspaper’s Harare office was bombed. A direct casualty of this act was a small art gallery below the then Editor Geoff Nyarota’s office. We understand the owner of that gallery was immediately pushed out of business. The perpetrators of this act were never brought to book.

 

Almost a year later, in January 2001, the newspaper’s printing press was blown up in Harare. Again no one was arrested and brought to trial for such a serious crime.

 

Almost all members of the company’s board of directors and its editorial staff face different charges arising from their association with that newspaper. Staff at the newspaper were constantly harassed, arrested and brutalised on untested allegations as part of a brutal campaign to muzzle the newspaper.

 

The Daily News represented a key addition to the range of voices calling for change in Zimbabwe’s political arena. It reflected the mood in the country and went further to play a key role in providing our supporters with an outlet to express themselves when the public media turned hostile to the wishes of the majority of our people. The closure of the Daily News is a political act. It has nothing to do with the law. The newspaper informed the world of the vicious government crackdown on the opposition before, during and after the election and exposed the electoral fraud of June 2000 and the Presidential election in March 2002.

  

May I make clear that we do not own the Daily News; nor do we determine its editorial agenda. Our interest in the newspaper is very clear. We feel hurt by the government’s continued onslaught on the democratic space. We are concerned about the shrinking avenues for Zimbabweans to express themselves. Our concern is the rising democratic deficit in Zimbabwe. The consequences of a gagging a society through the closure of all outlets for free speech are too serious for any democrats to ignore.

 

The forced shutting down of the Daily News has a lot to do with the desire to smash the MDC. Although that desire has failed to bear fruit in the past four years, Zanu PF has remained resolute to wish the MDC away. All our members of the national executive face a variety of charges, hundreds of our supporters have been killed, maimed and brutalised in an effort to destroy the party. That scheme has failed.

 

We believe the Supreme Court made a serious error when it refused to hear the arguments of the newspaper in its contest with the need to register under the Access to Information and Protection to Privacy Act (AIPPA). The refusal to hear the complainant’s case strengthened perceptions and reservations on the independence of the judiciary at a time when the people rely on that arm of society as the remaining protector of human rights and fundamental freedoms. As an independent nation, we are bound by international instruments that require us to respect minimum standards necessary for promoting and protecting the right to freedom of expression. Our Constitution is clear on the right to receive and impart information freely.

 

AIPPA was enacted specifically for the Daily News after all other attempts to squeeze the newspaper out had failed. First it was war veterans and hired Zanu PF officials who confiscated the newspaper, burning and tearing up copies on a daily basis. They beat up readers in the rural areas. They harassed vendors. Reporters were denied access to government information and to government buildings. Local investors were intimidated and editors were arrested.

 

AIPPA is an unjust law. It was fast-tracked through Parliament primarily to sabotage the right to freedom of expression and suffocate the free exchange of ideas and information.  AIPPA, together with the Public Order and Security Act (POSA), the Broadcasting Services Act, the Miscellaneous Offences Act (MOA) and the Labour Relations Act (LRA), among many other pieces of repressive laws, form the bedrock of legislative repression in Zimbabwe targeted at dealing with both freedom of expression and freedom of assembly. The use of AIPPA to shut down the Daily News is a serious demonstration of intolerance and must leave no person in any doubt as to the desire of the regime to limit the flow of ideas and stifle freedom of expression in Zimbabwe.

 

The Independent Journalists Association of Zimbabwe (IJAZ) and the Daily News challenged AIPPA before the same Supreme Court on the grounds that it infringed the Constitutional guarantee of freedom of speech.  The IJAZ challenge was heard 12 months ago and no judgement has been made to date. The delay has never been explained; nor has the nation been informed of why no decision has been made after such a long time.

 

Within a short space of AIPPA life, three foreign journalists were deported and dozens of local journalists, all from the private media, were arrested. None were convicted.

 

We say the law was promulgated with the intention of curtailing media freedom as expressed by private citizens because no journalist from the state media has ever been harassed or arrested under the provisions of AIPPA.

 

We believe the rights of Zimbabweans are under siege. Repression is set to increase as long as the Daily News remains silenced. Nearly every issue of the Daily News carried reports of the state abuses. Without that regular exposure, the state may step up its brutal campaign because the government owns all the other dailies and they do not criticise the regime or expose its violence. Without the Daily News the future is bleak indeed.

 

It is for this reason that we believe pressure must be brought to bear on this government to re-open the democratic space and allow Zimbabweans to enjoy generic freedoms that make it possible for them to make informed decisions necessary in a free society.

 

The Daily News provided us with a vital channel through which to communicate with the people on a daily basis. We are denied access to the public media, which is simply a mouthpiece for Zanu PF and an outlet for their deception, lies and propaganda.  Closing down independent papers will not conceal the criminal failings of this regime. People experience these failings on a daily basis: in the queues for food, in the queues for cash and in the queues for fuel. They know who is to blame.

 

Our fear is that this latest assault on democracy in Zimbabwe betrays a more sinister agenda aimed at silencing all diverse voices within the country. The absence of private media exposure may well provide the enemies of democracy with the injection of confidence to implement a cynical agenda aimed at silencing their internal critics.

 

Despite this setback, the people of Zimbabwe have remained determined to fight for their freedom. They now controls and run 12 major towns and cities in Zimbabwe. Our success in the recent local government elections was a testament to the bravery of thousands of Zimbabweans who turned out to vote in the face of mass coercion and intimidation by the ruling party, aided and abetted by rogue elements within the security forces. These elections, however, proved yet again that our struggle is still far from over. More than 40 MDC candidates were prevented from submitting their nomination papers, scores of MDC activists were brutally attacked whilst Zanu PF again deployed the crude tactic of “food for votes” in a desperate attempt to deliver a credible showing at the polls. They failed because people desire change.

 

Zanu PF ministers attempted to exploit the MDC’s overall success for their own political ends by suggesting that the results demonstrated that Zimbabwe was a ‘true democracy’. Any slender chance of such misleading comments resonating around the international community would have come to a halt with the forced closure of the Daily News.

 

If Zanu PF is serious about the need to break the current political impasse and allow the people to set up a functioning democracy, then that party needs to add some substance to its rhetoric. People are not fools. They know that Zimbabwe cannot be a democracy when opposition legislators are tortured whilst in police custody, when people are mandated to attack political opponents without fear of prosecution and when people are prevented by law from gathering to have a political discussion unless they have received official permission to do so.

 

We urge Zanu PF to put the people first and discharge their basic duties by disbanding the youth militias, ending state sponsored violence and ensuring that everyone receives equal protection under the rule of law. We urge them to commit themselves to a process of dialogue for a long-term resolution of the problems currently facing us. As we have said before, only through a free and fair election, held according to SADC norms and standards, can we tackle the crux of the Zimbabwe crisis, the issue of legitimacy, and take the necessary steps to tackling the broader elements of the crisis that are polarising and destroying our country.

 

We are ready to engage Zanu PF in meaningful dialogue. Our victory in urban elections shows that we are no longer a mere opposition party. We are governing the country. We determine the agenda for Zimbabwe today. Our role is that of a social democratic movement fighting to extend the ideals of the liberation struggle to enable Zimbabweans to achieve peace, freedom and total democracy.

 

Our interest in dialogue must never be confused with capitulation. It is part of our broad strategy to end the crisis of governance in this country. Zanu PF has run out options to address the crisis, so we have taken a number of steps to give dialogue a chance. We are even prepared to make further compromises for the sake of our bleeding nation.

 

The key to whole saga rests with the leaders of Zanu PF and the MDC. We need to meet to unlock and remove the stumbling blocks and pave the way for the two parties to engage each other in a climate of confidence and patriotism.

 

Contrary to claims that Zimbabwe is under a sanctions regime, it must be remembered that the Harare Declaration of the Commonwealth is very clear on matters of governance. Zimbabwe has simply failed that test.

 

The Commonwealth then imposed certain measures to bring back the regime into line. The regime has remained adamant. The regime has taken no steps to address the issues raised by the international community. Such actions have forced the Commonwealth to maintain its position because there has been no significant shift in the regime’s actions. The CHOGM position must be enforced until there is meaningful change in the behaviour of the regime.

 

I thank you.

 

Morgan Tsvangirai

President, Movement for Democratic Change

 EDDIE CROSS IN ZIMBABWE

Underbelly of Mugabenomics

Bulawayo, 11th October 2003

 

Transparency International rated Zimbabwe 106 out of 133 countries they classed recently in terms of corruption. The sort of thing they were talking about were the usual - government officials taking bribes in return for favours, the perception of foreign businessmen abroad about what they would have to do to come into the country as an investor or contractor. Petty corruption at borders and so on. But these forms of theft of national, private or public assets pales into insignificance against what I call the activity that goes on in the name of that peculiar science - the economics of Robert Mugabe. Remember as you read this that the Mugabe government has 17 Ph.D. graduates in its ranks. Mugabe himself has 6 degrees and is widely recognised as a highly intelligent, if not, brilliant, man.

 

We have all the usual forms of petty corruption - policemen at road blocks - strangely racial in their activity as they target black drivers rather than white. All government contracts, almost without exception now, are only awarded after some form of corrupt practice. Our first decade of independence was not characterized by this form of corruption on any scale but by the mid 90s it was endemic and has grown exponentially since. Even so, many visitors to Zimbabwe say that our corrupt officials are no where near as avaricious as those of, say, Nigeria or the DRC.

 

A country can absorb these forms of corruption and still function; in fact in an environment where officials are paid low salaries it may be the only way the country continues to work at all. Like the practice in the DRC of placing a ten-dollar bill in your post box before you get your mail, you just write it off as a business expense.

 

No, it is another form of theft of assets that really concerns me. It is not widely recognised but everyone who works in the system knows it is going on and also recognises the huge transfers of assets that are involved. Mugabe and his collection of thieves have made this into virtually an art form.

 

The key is the legal system and the control over transactions in our society levied by the Reserve Bank. The informal sector largely operates outside this so you need a fairly sophisticated system to start with to make it effective.

 

If we take just one factor - the artificial exchange rates levied by the Reserve Bank on foreign exchange receipts by exporters and service providers. Take just one year as an example - the year 2000. In that year Zimbabwe earned US$2 554,000,000 from exports of goods and services. This was made up of US$600 million from tobacco and about US$250 million from gold - 33 per cent of all exports. The total value of all receipts from tobacco and gold were sold to the Reserve Bank at a prescribed exchange rate of 55 Zimbabwe dollars to one US dollar. Of the balance of all export receipts the Reserve Bank bought 50 per cent or another US$850 million. So the Reserve Bank purchased from exporters a total of US$1,7 billion dollars at an exchange rate of 55 to 1.

 

For those of you who do not know how this works, if you were to receive a payment of US$1000 into your bank account from an overseas client, a computer would reach into your account and take out US$500 and give you Z$27 500 in return. The Reserve Bank now controlled your US$500 receipts at a cost to the Bank of Z$27 500.

 

However the "real" value of the dollar at the time was about 350 to 1. So the effective loss to the exporter of earned income on that simple transaction was Z$147,500 or 85 per cent of the value of the currency earned. Across the whole transaction (US$1000) the loss in potential income was 42 per cent. So if we go back to the total exports of the country in that year, we will see that the effective theft of exporters’ income by the Reserve Bank in one year alone was a staggering Z$500,500,000,000 or 56 per cent of the total value of the exports of the entire country. In other words - had a free market for foreign exchange existed in Zimbabwe, exporters would have earned Z$893 billion from exports instead of Z$392 billion.

 

This calculation is not altogether a true reflection of real values because demand and supply inflated the value of the US dollar in open markets. If all foreign exchange was traded - the open market exchange rate would have been much stronger - maybe as much as half the nominal market price. Even under those circumstances exporters would have earned Z$55 billions dollar more from their exports than they actually did.

 

What makes this form of theft even more pernicious is the effect it has on the rest of the population. Everyone apart from a small coterie of Zanu PF acolytes has to use foreign exchange at the open market price for their imports. A manufacturer who wants to import raw materials or a pharmacist, who wants to import an essential drug, all have to price their needs into the market at the open market exchange rate (350 to 1). Consumers therefore have to pay for everything they buy that has an import content at the higher price. This affects everything in the country from the price of bread to liquid fuels. In effect the Reserve Bank system is therefore another layer of taxation by the State levied without knowledge or approval of the people by the gnomes behind the elaborate façade of the Reserve Bank in Harare.