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Mexican authorities on Saturday sent reinforcements of 1,800 police troops in the fight against drug cartels, after more than 40 people were found dead in three Mexican cities over the past two days as drug gang fighting intensified, local media reported.

The Public Safety office announced that the well-equipped 1,800 federal agents were sent to Michoacan state on Saturday, in a battle there mainly against the Knights Templars, a splinter group of the La Familia drugs cartel.

National Security Council spokesman Alejandro Poire said it was a "reinforcement operation faced with the possibility of greater mobilization by organized crime groups."

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Poire reiterated that it were these criminals, not the government's crackdown on organized crime, that has caused waves of drug gang-related violence. More than 35,000 people have died since President Felipe Calderon stepped up the fight against organized crime in 2006, according to official figures.

"The violence won't stop if we stop battling criminals," Poire said. "The violence will diminish as we accelerate our capacity to debilitate the gangs that produce it."

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At least 20 people were killed and five injured when gunmen opened fire in a bar late Friday in the northern city of Monterrey, where the Zetas gang is fighting its former ally, the Gulf Cartel, according to Alejandro Poire.

Eleven bodies were found earlier Friday near a water well on the outskirts of Mexico City, where the gang is fighting the Knights Templar, an offshoot of the La Familia gang that has terrorized its home state of Michoacan, said Poire.

Poire added another 10 people were found dead early Saturday in different parts of the northern city of Torreon, where the notorious Zetas are fighting the Sinaloa cartel.

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Britain's Prince William and his wife Catherine arrived in Los Angeles on Friday for a three- day swing through Southern California.

California Governor Jerry Brown and Los Angeles Mayor Antonio Villaraigosa were at the scene to welcome the royal couple who came from Canada where they had spent a week.

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Upon their arrival, the newlywed Duke and Duchess of Cambridge will attend Variety magazine's Venture Capital & New Media Summit at the Beverly Hilton. The event will include British and American technologists and venture capitalists working to find new avenues for investment and job-creation in the United States and Britain.

A reception at the British Consul-General's residence will give William and Catherine an opportunity to meet what a British statement called "California's political, business, and philanthropy leaders."

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As the royalty fever will grip Southern California, the Los Angeles Police Department said it would crack down on anyone roaming into prohibited areas without permission.

The couple's visit is aimed at showing support for "the UK's prosperity agenda, which is seeking to create jobs and investment by deepening the strong bonds between the U.S. and UK," according to the British Consulate in Washington, D.C..

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The visit will strengthen ties between the countries' respective Armed Forces, "particularly on veterans issues, including reintegration into society, and create and tighten relationships in the charitable sector," the consulate said.

The tour will build on "the momentum of Prince Harry's visit last year, The Prince of Wales' visit this spring and the state visit (to England) by President (Barack) Obama," said the consulate.

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The People's Bank of China (PBOC), the central bank, announced on Wednesday that it will raise bank's benchmark one-year borrowing and lending rates by 25 basis points on Thursday.

This is the third time for the central bank to raise interest rates this year. The previous one occurred on April 5.

Meanwhile, the central bank has hiked the reserve requirement ratio for banks six times this year.

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The move raises the benchmark one-year deposit rate to 3.50 percent and the one-year benchmark lending rate to 6.56 percent.

Inflation data for June will be released on July 15 and many economists forecast it will hit a new high above 6 percent.

Food prices have been increasing, some dramatically. Pork prices rose for the 10th consecutive week as of June 26 and the wholesale price of pork was up 68 percent from a year earlier, according to the Ministry of Commerce
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China will continue to implement a prudent monetary policy as inflationary pressures still remained high, said a statement on the website of the central bank on Monday.

The Consumer Price Index (CPI), a main gauge of inflation, rose by 5.5 percent in May from the previous year, setting a 34-month high and well above the government's target ceiling of 4 percent for the year.

The country's top economic planner said recently that overall price levels will be higher in June than May.

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The interest-rate hike will help check high inflation and the June CPI data will be 6.2 percent, Lu Zhengwei, chief economist for the Industrial Bank, predicted.

Xu Xiaonian, an economics professor at China-Europe International Business School, wrote in his microblog that the scale is small and even with a 250-basis-points hike, the real interest rate would still be negative.

The real interest rate is the nominal interest rate minus the inflation rate.

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After this hike, further such moves will not be likely within this year and the need to again raise bank's reserve requirement ratio will also be low, said Zhu Jianfang, chief economist with CITIC Securities.

But Li Xunlei, an analyst at Guotai Junan Securities in Shanghai, forecast there will be another interest-rate hike in the third quarter.

Guo Tianyong, a professor with the Central China Finance University, said the move is necessary as it can help correct the negative interest rates and manage inflation, but it can also slow economic growth and precipitate inflows of speculative hot money.

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The interest-rate hike is not good news for local governments, as they will have to pay higher interest on their debts.

Local government debt totaled 10.72 trillion yuan (1.66 trillion U.S. dollars) at the end of 2010, said an audit report late June.

It's high time to test the local governments (to deal with the debts) as risks of local government debt defaults are increasing, said Xie Guozhong, an independent economist in China.
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China's fiscal revenue growth is expected to slow down in the later period of the year, Finance Minister Xie Xuren has said.

Policies such as higher exemption threshold for individual income tax and tax breaks for small-sized firms with thin profits will reduce fiscal revenue, according to a statement posted on the ministry's website on Saturday, citing Xie's address at a meeting held on Friday.

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Fiscal revenue rose fast in the first half of the year as the country's economy was running generally well toward the direction of macro controls, he said.

Government data showed fiscal revenue rose 34 percent year-on-year in May, faster than 27.2 percent in April and 26.7 percent in March.

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However, the economic development faced complicated situation both at home and abroad, with many unstable and uncertain factors, he added.

Also at the meeting, he asked local authorities to take water projects as a major sector for fiscal expenditure and increase investment.

He called for government spending to take the leading role and encouraged social capital into the sector to ensure that annual investment in water projects double the level for 2010 in the following 10 years.

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Further, he said low-income housing, education and social securities should be the priorities for fiscal spending in 2012.

Governments should strictly control expenditure on vehicle purchases and maintenance, overseas trips and official receptions, he said, asking authorities to publicize budgets to improve transparency.

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The Republic of South Sudan declared independence Saturday and China immediately established diplomatic ties with the world's newest country.

China, as a responsible big country and a friend of both north and south Sudan, has played a unique and constructive role in pushing forward their peace and development for many years.

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China was a witness to the forming of the Comprehensive Peace Agreement between north and south Sudan. During a long period, China, along with the rest of the international community, has respected the will and choice of the people of both sides, and made arduous efforts in helping them realize peace and turn away from war.

China has actively participated in U.N. peace-keeping missions in Sudan, and it sent a team to observe the referendum on south Sudan's destiny in January at the invitation of both sides.

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In May, after armed conflicts broke out between north and south Sudan, China worked hard to help end the conflicts.

Chinese Special Envoy on African Affairs Liu Guijin visited Sudan in June to persuade both sides to prevent further clashes.

The fundamental reason behind China's effective work is China has kept an impartial attitude in dealing with both sides and maintained a focus on their long-term interests and regional peace and stability.

As Liu said during his visit, "China is ready to exert joint efforts with Sudan to find solutions to the outstanding issues for sustainable peace in Sudan and for creating stability in the region in the long run."

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For many years, China has provided aid within its capacity for north and south Sudan for their economic and social development, and established a good model of South-South cooperation.

China has helped Sudan build a complete oil industry in 16 years, trained many workers, offered humanitarian assistance to north and south Sudan, established hospitals and schools, and dug wells to help locals improve their living standards.

In comparison with Western countries' aid, China's assistance to north and south Sudan, although limited, is sincere and comes without preconditions, something that is appreciated by the people of both sides.

The China-Sudan friendship, which has been tested over more than half a century, will surely be carried forward in the future.

Sudanese President Omar al-Bashir said his government would enhance the friendly relations with China after south Sudan became independent.

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President of South Sudan Salva Kiir also says his government and people consider China a sincere friend and reliable partner. He said South Sudan was willing to further relations with China after it declared independence and welcomed investment from Chinese enterprises.

Meanwhile, as Sudan and South Sudan both face severe challenges after the latter became independent, their development relies on the support from the international community.

Sudan's economic development model badly needs transformation after the oil-rich southern part was separated from the country. South Sudan's development lags behind its northern neighbor with underdeveloped infrastructure and an inexperienced new government.

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China has maintained good relations with both parties and has been participating in Sudan's construction in energy, agriculture and infrastructure.

In the future, China will play a particular role in enhancing the communication and cooperation between Sudan and South Sudan and the economic construction of the two countries.

"After South Sudan declared independence, China will continue to develop the friendly, cooperative and win-win relations with north and south Sudan. China will work with the rest of the international community to actively participate in the reconstruction of South Sudan," Liu told Xinhua on June 22 after his visit.

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Lisa Grande, U.N. humanitarian chief in South Sudan, said China had advantages in the construction of infrastructure such as roads, bridges and the power grid in Sudan and South Sudan. China, through its projects, could communicate with the two peoples and facilitate the mutual trust and cooperation between the two parties, she said.

However, some Western countries have accused China of using its relations with the two countries for "plundering energy resources."

Such criticism will not impede China's determination and efforts to help people from Sudan and South Sudan realize their countries' peace and development

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A man was sentenced to death Tuesday in south China's Guangdong Province for forging counterfeit yuan notes with a par value of 170 million yuan with 15 other gang members.

Xiao Guihong, the ring leader, was given the death penalty in the first-instance trial, according to a verdict released by the Dongguan City Intermediate People's Court.

The other 15 ring members were given sentences ranging from death with a reprieve to a year and 10 months in prison, the verdict said.

The 16 members were also ordered to pay fines ranging from 350,000 yuan (54,400 U.S. dollars) to 60,000 yuan.

The gang members made an illegal profit of 1.8 million yuan from selling fake yuan notes worth 56 million yuan in total par value in August 2009, according to the court.

Police confiscated the rest of the notes with a par value of 114 million yuan in two raids in the same year.

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Authorities in China's southwestern city of Mianyang Tuesday warned citizens not to drink tap water as a river that supplies water to the city was polluted by tailings of a local manganese plant.

The residues of the electrolytic manganese plant in the county of Songpan, which was administered by the city of Mianyang in Sichuan Province, were washed into the Fujiang River by heavy rains that hit the city last Thursday, according to a notice posted on the city government's official website.

According to the statement, monitors of the local environment bureau detected the pollution on Tuesday.

The city government has ordered more supply of bottled water for citizens, said the statement.

It also said that the government has been taking measures to clear the contamination in the river but it failed to elaborate on the measures.

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President Hu Jintao said the government will continue its proactive fiscal policy and prudent monetary policy in the second half of this year, with stabilizing prices as a priority.

Hu, also general secretary of the Communist Party of China (CPC) Central Committee, made the remarks at a symposium held in Beijing Thursday. People from the non-communist parties and the All-China Federation of Industry and Commerce, as well as those without party affiliations attended the event.

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The government will take concrete efforts to "handle the relationship between speed, structure and price and continue to gear the economic development toward the direction of macroeconomic controls," Hu said.

The government will maintain the continuity and stability of its economic policies, while keeping close watch on economic development and price increases, Hu said.

A top priority of the macroeconomic policies is that more efforts should be made to keep prices generally stable and maintain the stability of consumer prices, Hu noted.

Premier Wen Jiabao echoed Hu's stance, reiterating at the symposium that the government will stick to the current macroeconomic policies, and he pledged there would be more emphasis on stabilizing prices and more measures to curb excessive price increases.

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The government will work to "slow down price gains while preventing big fluctuations in economic growth," Wen said.

He said China's economy is developing in the expected direction under the government's macroeconomic controls with more self-initiated growth instead of the expansion that was spurred by the economic stimulus previously.

However, China still faces many instabilities and uncertainties in economic development, he warned, adding that "the world economic recovery remains fragile and unbalanced."

Government data shows China's gross domestic product (GDP) rose by 9.5 percent year-on-year in the second quarter of 2011, tapering off slightly from the 9.7-percent growth posted in the first quarter.

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Inflation remained stubborn as it escalated to its highest level in three years of 6.4 percent in June. The consumer price index (CPI), the main gauge of inflation, jumped 5.4 percent year-on-year in the first half, well above the government's target of 4 percent for the year.

The central bank has so far lifted the reserve requirement ratio for banks six times and raised interest rates three times this year to put a lid on price increases.

Many economists and institutions expect that inflation peaked in June or is close to peaking. The Bank of Communications said in a report Thursday that inflation may fall to 4 percent by the year end and that the economy has little risk of a hard landing.

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The International Monetary Fund projected earlier this week that China's economy will grow 9.6 percent this year, propelled by rising exports and increasing domestic consumption.

It also said inflation in China will ease in the second half of this year.

Meanwhile, Hu pledged the government will step up agricultural production for a full-year harvest, improve social security, increase aid to low-income families, promote food safety and accelerate construction of low-income housing in the second half of the year.

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Hu also vowed to advance economic restructuring and accelerate development of new strategic industries, and promote development in the Tibet Autonomous Region, Xinjiang Uygur Autonomous Region, Inner Mongolia Autonomous Region and other regions populated by ethnic minority groups.

Wen added the government will launch an overall audit over local government debts and clear up and regulate local government financing vehicles.

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Thunderstorms have been battering southwest Chongqing Municipality -- damaging homes and farmland, cutting power supplies, and affecting approximately 275,000 people since July 21.

More than 1,500 houses have been damaged by the continuous storms and another 400 have collapsed, according to the flood control and drought relief headquarters of Chongqing.

About 6,866.66 hectares of farmland have been affected by the thunderstorms.

There will be another round of thundershowers with heavy winds and hail in Chongqing on Tuesday, according to the forecast released by the municipal meteorological observatory.

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In north Inner Mongolia Autonomous Region, a bridge was destroyed by rain-triggered floods on the Jining-Tongliao Railway.

About 3,800 passengers were stranded on five stalled trains from 7:30 p.m. on Monday, according to the railway bureau of Hohhot, capital city of Inner Mongolia.

As of the midday on Tuesday, most of the stranded passengers have been transferred by car to their destinations or other train stations nearby.

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The round of strong rainfalls also battered north China's Hebei Province, neighboring Beijing, leaving 330,000 people in disaster and one person missing as of Tuesday.

About 14,000 hectares of farmland have been affected by the rain, and of that, 320 hectares have lost harvest. More than 700 houses and some urban and rural infrastructure were damaged.

In central China's Hubei Province, thunderstorms and strong winds hit the northwestern areas at around 3:30 p.m. Monday and caused power failure and three trains delayed.

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A senior official of the Communist Party of China (CPC) has called on authorities to actively respond to reasonable appeals from the public and work to ensure the masses benefit from China's economic development.

Zhou Yongkang, a Standing Committee member of the Political Bureau of the CPC Central Committee, told a meeting in Beijing Thursday the number of petition letters and visits remains "relatively big" and there were some prominent conflicts and problems.

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The overall situation is good, but some people's reasonable needs have not been dealt with properly, according to the official.

In an effort to prevent and defuse social conflict, Zhou believes it is necessary to address the root causes.

Government officials and leaders were asked to meet the masses and work to ensure that petitioners' voices are heard and their problems solved.

Authorities should always put people first and attach importance to solving issues regarding petition letters and visits, Zhou said.

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A sudden downpour hit Beijing Tuesday night, disrupting traffic in many parts of the city.

The downpour brought a precipitation of more than 100 millimeters in three hours from 9 p.m. Tuesday, blocking traffic in several artery roads in downtown area.

A car was submerged by rain water under the Lianhua (Lotus) Bridge on the city's Third Ring Road, where stagnant water was over one meter deep.

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"This round of downpour was concentrated in the downtown area, affecting urban traffic. The suburban districts received little rainfall," said Wang Yi, chief engineer with the Beijing municipal headquarters of flood control and drought relief, Wednesday.

A driver surnamed Cui said he was stranded on the Second Ring Road for two hours at Tuesday midnight.

"The highway has become a big parking lot. Water on ground was half a meter high," he said.

The municipal observatory forecast that the thunderstorms could occur in Beijing from Wednesday through Saturday, as the city has entered its flood season.

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Premier Wen Jiabao on Wednesday ordered a "swift, open and transparent" investigation into Saturday's fatal high-speed train collision.

Wen made the remarks at an executive meeting of the State Council, China's Cabinet.

Great importance must be attached to finding out the facts and judging responsibility in accordance with the country's laws and regulations, according to a statement released after the meeting.

Unswerving efforts should be made to save those who were injured in the crash, the statement said.

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At least 39 people died and 192 others were injured in Saturday's high-speed train crash near the city of Wenzhou in east China's Zhejiang Province. The train D301 rear-ended D3115, which stalled after losing power due to a lightning strike.

Wen offered his "deep condolences" to the victims and their families.

The State Council demanded for efforts to be made to confirm the death toll, identify the victims and provide proper compensation.

Three railway officials were sacked after the crash.

The MOR has promised to pay the families of the deceased 500,000 yuan (about 77,640 U.S. dollars) each in compensation.

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The State Council has set up an investigation panel, which is still working on the site, the MOR said Tuesday in a statement to Xinhua. However, the ministry did not provide a timetable about when the result would come out.

To ease public concerns and prevent further accidents, the State Council has decided to "take resolute steps to enhance safety," according to the statement.

A nationwide campaign will be launched to improve work safety, focusing on areas such as transportation, coal mining, construction and the hazardous chemical industry.

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The campaign aims to detect and remove potential dangers through comprehensive and thorough inspections of railways, roads, bridges, coal mines and buildings that are currently under construction.

The State Council urged both central and local authorities to draw lessons from past accidents and improve management, promote technological progress and enhance trainings to prevent accidents.

It also called for efforts to accelerate the revision of the Production Safety Law, defining responsibility and intensifying punishments for those who held responsible for work safety accidents.

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Mexican military personnel have found 60 hectares of marihuana cultivations in the northern state of Durango and confiscated 40 metric tons of the drug, Mexico's National Ministry of Defense said on Monday.

The areas cultivated with the drug were found in the municipality of Santa Maria del Oro, the ministry said in a statement.

The drug, which was seized in an operation carried out over the weekend, has a street value worth some 133 million U.S. dollars.

In the same operation the military also seized five vehicles, 26 military uniforms, two large assault weapons, 14 chargers, 108 cartridges, a laboratory, five camps and 23 lots of marijuana distributed in a field of 60 hectares on a ranch known as San Jose de Ramos.

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The ministry destroyed a total of 180 hectares of marijuana last week, including a major 120-hectare field found in the state of Baja California on July 18. So far this year the ministry has confiscated a total of 409,435 tons of marijuana, bringing to 3.1 million tons confiscated since December 2006 when Mexican President Felipe Calderon took office and declared war against the drugs cartels and organized crime.

In the same period 4,075 tons of cocaine and 125 tons of heroine were confiscated in addition to 8,842 vehicles, 28 airplanes, 17 boats and 17,611 weapons.

Authorities also said a total of 6,634 people have been arrested on drugs-related charges while 6.4 million dollars in cash and 33 million pesos (2.8 million U.S. dollars) have been seized.

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The U.S. State Department on Monday denied that the country is involved in the recent assassination of an Iranian nuclear scientist, urging Iran not to use the incident to "distract attention."

"We were not involved," State Department spokesperson Victoria Nuland told reporters, in response to the death of Dariush Rezaei, an Iranian nuclear scientist who was killed in eastern Tehran on Saturday.

She said it is a "frequent practice" for Iran to "accuse the West" for these kinds of incidents.


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"We hope that Tehran is not planning to use this incident to distract attention from what it needs to do, which is to come back into compliance with international obligations," she added.

Iran's Majlis (parliament) Speaker Ali Larijani called the assassination as a " U.S.-Zionist terrorist act," the satellite Press TV reported Sunday.

There have been a series of assassination attempts against Iran 's nuclear scientists in recent years.

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In January 2010, the Iranian nuclear scientist and the Physics professor at the prestigious University of Tehran, Massoud Ali- Mohammadi, was killed by a remote-controlled bomb attached to a motorbike parked near his house.

In November 2010, another Iranian nuclear scientist Majid Shahriar was also killed by a bomb attached to his car on the way to his work.

In January, Iran said it dismantled an Israeli spying network and arrested a group of people who were linked to the assassination of its nuclear scientist Massoud Ali-Mohammadi.

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U.S. President Barack Obama will address the Americans at 9 p.m. EDT on Monday about the state of efforts to raise the government's debt ceiling, said the White House in a statement.

"The president will address the nation from the White House on the stalemate in Washington over avoiding default and the best approach to cutting deficits," it said.

The world's largest economy is face an unprecedented default on Aug. 2 if the country could not raise its 14.29 trillion dollars borrowing limit which was hit on May 16.

With only a week before the deadline, the two parties in Washington remain split on their approaches to solve the problem which may cause global repercussions.

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