Taiwan unnerved by arrests over alleged spying for China

Taiwan has arrested three retired military officers on suspicion of spying for China, allegations that have unsettled lawmakers fearful that state secrets could be leaked to Beijing.

The accused include the former chief of political warfare at the Taiwanese naval meteorology and oceanography office, according a Ministry of National Defense statement sent Monday to local media. The ministry said Chang Chih-hsin had initiated contacts with Chinese officials during his service and was suspected of luring fellow officers and “making illegal gains.”

The office is seen as especially sensitive because it holds information about Taiwanese submarines and hidden ambush zones. "This has gravely endangered Taiwan's security," ruling party lawmaker Lin Yu-fang was quoted by the Taipei Times. "It's a shame for the military."

As the news spread, the ministry downplayed the risks, saying that no “confidential information” had been leaked to Beijing. The Chinese office for Taiwan affairs told the Global Times, a paper linked to the Communist Party, that it knew nothing about the alleged spying.

U.S. gas bonanza from fracking slow to spread globally

In less than a generation, the United States has soared to world leadership in extracting natural gas from shale formations by hydraulic fracturing. But as the world debates whether “fracking” is an economic boon or a budding environmental disaster, few foreign countries are following the U.S. lead.

Conditions unique to the United States have encouraged investment in the abundant source of low-carbon energy and boosted prospects for reducing dependence on costly and unpredictable supplies of foreign oil. Of the natural gas consumed in the United States last year, 94% came from domestic production, according to the U.S. Energy Information Administration.

“The availability of large quantities of shale gas should enable the United States to consume a predominantly domestic supply of gas for many years and produce more natural gas than it consumes,” the agency reports, predicting a 29% increase in output by 2035, almost all of it from shale fracking.

The rapid advance toward self-sufficiency has made the U.S. industry both a model and a cautionary tale for other countries pondering all-in development of their shale-gas reserves.

Significant deposits of natural gas trapped in coal and shale seams have been identified in Eastern and Western Europe, Canada, Australia, China, South Africa and the cone of South America. Global energy giants like Shell and Chevron are bankrolling billions in exploration, sizing up the cost-effectiveness of replicating the U.S. boom in more remote locales with little infrastructure.

Technological advances in horizontal drilling have made it feasible to tap small pockets of gas trapped in shale layers a mile or more below the surface. Contractors bore thousands of feet down through soil, rock and water layers, then drill laterally through the shale to create a horizontal well. When sand, water and chemicals are blasted into the bore holes, the force fractures the shale, releasing gas from fissures within the sedimentary rock. The gas is captured and ferried by pipeline to distribution grids or to port facilities where it can be converted to liquefied natural gas for overseas shipment.

But the process leaves behind tons of chemical-contaminated mud. There are also reports of drinking water pollution from the chemicals and methane gas that escapes into underground reservoirs. A study last year published by the Proceedings of the National Academy of Sciences documented “systematic evidence for methane contamination of drinking water associated with shale gas extraction” in the aquifers above the Marcellus and Utica shale formations in the U.S. Northeast.  This spring, the U.S. Geological Survey reported “a remarkable increase” in the occurrence of earthquakes of magnitude 3 or larger that it tied to fracking operations.

This month, the U.S. Government Accountability Office acknowledged that the Environmental Protection Agency was finding it “challenging” to inspect and enforce clean air and clean water regulations in the fast-moving fracking industry. For example, the GAO report noted, the EPA is often unable to evaluate alleged water contamination because investigators lack information about the water quality before the fracking occurred.

Chinese cancel ceremony in anger at Japanese claims to islands

BEIJING — China has canceled a ceremony scheduled for this week to mark the 40th anniversary of diplomatic relations with Japan in anger over Tokyo’s claims to a disputed cluster of islets in the East China Sea.

"Due to the current situation, the Chinese side has decided that the reception commemorating the 40th anniversary of the establishment of diplomatic relations will be postponed until an appropriate time," the official New China News Agency reported Sunday, quoting an unnamed official of the Chinese People’s Assn. for Friendship With Foreign Countries.

The agency left open the possibility that the reception, originally scheduled for Thursday, would be held at an "appropriate time."

Chinese officials are angry over the Japanese government’s plans to buy three of the islands -- called Diaoyu in Chinese and Senkaku in Japanese -- in a move that would effectively nationalize the property. The island chain lies between Taiwan and Okinawa and has been contested for more than a century.

Chinese Foreign Ministry spokesman Hong Lei at a regular briefing on Friday hinted that the reception would be canceled. “Due to Japan's erroneous action of illegally buying the Diaoyu Islands, many plans have been ruined, and many activities have been affected at present,” he said.

Taiwan photographer records shelter dogs' last moments [Photos]

In Taiwan, one man is giving animals destined to be put to death a last moment of dignity -- through the lens of a camera.

Photographer Tou Chih-kang, known professionally as Tou Yun-fei, has taken pictures of hundreds of dogs in their last moments at the Taoyuan Animal Shelter, just before veterinarians put them down, the Associated Press reports. His photos draw attention to the plight of strays, 80,000 of which are reportedly euthanized annually in Taiwan.

PHOTOS: A dog's last moments

“I believe something should not be told but should be felt,” Tou told the Associated Press. “And I hope these images will arouse the viewers to contemplate and feel for these unfortunate lives, and understand the inhumanity we the society are putting them through.”

See more of his striking images and behind-the-scenes shots in our photo gallery. You can also view some of his photos on this photo-sharing website.

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Photo: Taiwanese photographer Tou Chih-kang hangs his portraits of the final moments in the lives of shelter dogs for an exhibition in Taoyuan, northern Taiwan. Credit: Wally Santana / Associated Press

U.S. exempts seven countries that consume Iran oil from sanctions

WASHINGTON -- The Obama administration announced Monday that it had exempted seven countries that are major consumers of Iranian oil from threatened U.S. sanctions aimed at punishing Tehran for its disputed nuclear program.

Officials said India, South Korea, Turkey, Taiwan, Malaysia, South Africa and Sri Lanka had reduced their purchases of Iranian crude sufficiently to cut Tehran’s exports without upsetting global oil prices. In March, the Obama administration similarly exempted 10 European countries and Japan from sanctions, saying they too had done enough to wean themselves from Iranian energy.

U.S. officials said Iran now exports at least 700,000 barrels per day fewer than last year’s exports of 2.5 million barrels a day, cutting into a crucial source of revenue. U.S. and European officials have sought to squeeze Iran’s energy sector as part of the international campaign to pressure Iran to stop enriching uranium that could be converted for use in nuclear weapons.

“We are sending a decisive message to Iran’s leaders: Until they take concrete actions to satisfy the concerns of the international community, they will continue to face increasing isolation and pressure,” Secretary of State Hillary Rodham Clinton said in a statement Monday.

Another round of Western sanctions is  due to begin July 1, including an embargo on purchases of Iranian oil by all European Union members. Mark Dubowitz, an energy specialist at Foundation for Defense of Democracies, a Washington-based think tank, said the new embargo could cut Iran oil exports to below 1.2 million barrels per day, less than half last year’s output.

Although the tightening sanctions have hurt Iran’s economy, Iranian negotiators have shown little sign in two rounds of international talks that they may slow down their nuclear development. Many countries believe Iran is enriching uranium so it can become capable of producing a nuclear bomb if it decides to do so. Iran maintains it is interested only in peaceful uses of nuclear energy.

Obama administration officials didn’t say how much the seven countries had cut their oil purchases. In March, U.S. officials signaled that they were seeking reductions of 15% to 22% of purchases.

Several large countries, including India and Turkey, said publicly that they were reluctant to reduce imports of Iranian oil because of their long reliance on the Islamic regime. They appear to have met the minimum level of cooperation that Washington demanded, however.

Many of the countries have begun buying additional oil from Saudi Arabia to make up for their Iranian supplies.

The cutbacks by the seven nations haven’t raised global oil prices, largely because of the economic slowdown in both Europe and China, as well as increased supply from several countries, including Iraq and Libya.

Two importers of Iranian oil that have not yet been granted exemptions are China and Singapore.

China has been increasing purchases of Iranian oil in the last two months, after a sharp reduction earlier in the year. But Beijing has forced Tehran to grant it substantial price cuts. Since price cuts reduce Iran’s profit, China may ultimately be granted an exemption, some analysts believe. The tiny nation of Singapore imports relatively small amounts of Iranian oil overall.

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Taiwanese president wins reelection, vows closer ties to China

REPORTING FROM TAIPEI, TAIWAN, AND BEIJING -- Taiwanese President Ma Ying-jeou won reelection Saturday, a mandate that he vowed in a victory speech in Taipei will spell more trade and economic links with the island’s old foe, China.

Ma won 51% of the vote compared to his chief rival’s 46% after a tense campaign packed with criticism of his overtures to China.  He had urged voters to see his attempts at rapprochement as stimulus for the economy, but was accused of getting too cozy with Taiwan’s rival of more than 60 years.

"Ma will feel he now has a mandate to do what he wants, though if he goes too far people will be very unhappy,” said Bruce Jacobs, Asian studies professor at Monash University in Australia. “China, I think, is happy that Ma has won."

And indeed, Beijing applauded the results. "We are willing to join hands with Taiwan's all walks of life on the basis of continuing to oppose the Taiwan independence," read a statement released by the Taiwan Affairs Office of the State Council, China’s equivalent of a Cabinet.

The People’s Daily, run by the Chinese Communist Party, hailed Ma’s reelection with an editorial that went up shortly after the results were announced.

"Ma Ying-jeou's victory was the choice made by Taiwan's people. This result shows that seeking peace, growth and stability is the mainstream thought in Taiwan. It will further enhance cross-strait relations and benefit people on both sides. It's the common wish for all people in Taiwan."

Although the China-friendly incumbent was clearly the preferred candidate, Beijing maintained a coy silence during the campaign, fearing that any overt support for Ma could backfire. The few official commentaries in the state media were cautious in their criticism of his chief rival, Tsai Ing-wen.

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Photo: Taiwanese President Ma Ying-jeou declares victory in the country's presidential election Saturday in Taipei, Taiwan. Credit: Vincent Yu/Associated Press