Full refund within 30 days if you're not completely satisfied.
December 7 - 13 2011
μWorld News PAGES 14-17
μComment PAGES 18-21
μObituaries PAGES 22-23
WORLD NEWS P14
An end to isolation Hillary Clinton meets Aung San Suu Kyi in Rangoon
Ken Russell Often-outrageous film director who shocked and delighted
EXPAT LIFE P32
’I Woz Ere’ How run-down estate in Coventry inspired artist George Shaw
Hindered by Interpol Lobbyist’s long and bitter battle over sovereignty of West Papua
23 13 24 25 26 30 1 30 35 47 48 49
Bonus Ball 4
Bonus Ball 8
There were no winners of Saturday’s £7.2m jackpot and no one won Wednesday’s £2.2m prize
μEDITORIAL OFFICE: 111 Buckingham Palace Road, London SW1W 0DT. Tel (Int 44) 207 931 2000. Email firstname.lastname@example.org μADVERTISING: For details of local offices, contact Julie Bridge, Tel (44) 207 931 3290. Email email@example.com. For further information from any advertiser in this issue, please email your contact details, the advertiser(s) and issue date to firstname.lastname@example.org μSUBSCRIPTIONS: Weekly Telegraph Subscriptions, 3rd-4th Floor, Victory House, Meeting House Lane, Chatham, Kent ME4 4TT. Tel (44) 1622 335080. Fax (44) 1634 815163. (Office hours: 09.00-17.00 GMT.) Email email@example.com μDELIVERY INQUIRIES: Australia: Network Services. Contact MAGSHOP. Tel: 136 116. Email firstname.lastname@example.org Canada: Linda Hoefler. Tel 001 416 585 5856. Fax 001 416 585 5869. Email email@example.com Denmark: Bjarne Balle-Christiansen. Tel 0045 3327 7724. Fax: 0045 3296 8682. Email firstname.lastname@example.org Hong Kong: Jeff Law. Tel 00 852 2756 8193. Fax 00 852 2799 8840. Email Jefflaw@foreignpress.com.hk Kenya: Shadrack Ochanda. Tel 0025 425 40280. Fax 0025 425 40295. New Zealand: Netlink Subscriptions. Tel 0064 9 308 2871. Philippines: Denis Catangay. Tel 832 5383. Fax 831 3256. Email email@example.com Singapore: Doreen Tan. Tel 6282 1960. Fax 6382 3021.Email Doreen@carkitfe.com South Africa: Global News, 74 First Road, Kew 2090, South Africa. Tel: (011) 8872670/1. Fax 0865117067. Email: firstname.lastname@example.org United States: Marlon Johnson. Tel 1800 933 2147. μNEWSSTAND INQUIRIES: The Publisher, 111 Buckingham Palace Road, London SW1W 0DT. Tel (44) (0) 20 7931 3447 Š The Weekly Telegraph (USPS#006819) is published weekly for US$218 a year by Telegraph Media Group Ltd, 111 Buckingham Palace Road, London SW1W 0DT, England. Periodicals postage paid at Newark, NJ. POSTMASTER: Send all address changes to The Weekly Telegraph, c/o SDS Global Logistics, 263 Frelinghuysen Ave, Newark, NJ 07114-1539.
μDATA PRIVACY: When you respond to Telegraph Media Group Limited’s competitions, offers or promotions, we may use your information for marketing purposes. We will contact you by mail or telephone to let you know about any of our special offers, products and services which may be of interest to you unless you have asked us not to. We will only contact you by email, text message, or similar electronic means with your permission. We will only pass your name on to third parties if you have consented for us to do so. In some cases our special offers, products and services may be provided, on our behalf, by our partners. If you have agreed to be contacted by us, your personal information may be passed to our partners; however, in all such cases we remain a data controller of your personal information. When responding to competitions, offers or promotions by postcard, if you do not wish for your details to be used by us to send you special offers, please make this clear by stating “No Offers”. We respect your data privacy. You may modify your preferences or get further information by writing to us at Data Privacy, Telegraph Customer Service, Victory House, Meeting House Lane, Chatham, Kent ME4 4TT or by email to data. email@example.com.
Continued from page 1
inherently unstable, “they had a point”, he admitted.
Because Britain is not in the euro, it is not “sharing the burden”, Mr Delors said. However, he claimed that the UK is “just as embarrassed as the Europeans by the financial crisis”, not least because some of the measures put in place to deal with the crisis pose a threat to British interests.
For example, he said, the creation of a common “Eurobond” underwritten by all eurozone governments and traded in Paris and Frankfurt would be a “big worry” for the City of London. “I can see Mr Cameron’s worries,” he said.
Such is the scale of the crisis, he warned, that “even Germany” will struggle to find a solution. “Markets are markets. They are now bedevilled by uncertainty.”
The Prime Minister was in
Paris last Friday for talks with President Nicolas Sarkozy before this week’s EU summit. The meeting will begin discussions about changing the union’s basic treaties in response to the debt crisis.
Chancellor Angela Merkel of Germany insisted last Friday that such a treaty change was necessary and hailed what she described as concrete steps towards the creation of a “fiscal union”.
British diplomats are increasingly concerned that the 17 governments using the euro could try to strike an agreement on new rules between themselves, effectively excluding non-euro countries such as Britain.
Mr Cameron suggested that the fundamental economic reforms needed in response to the euro crisis did not require any treaty change, setting up a potential clash with Mrs Merkel.
Jacques Delors said EU leaders were doing ‘too little, too late’
Despite British worries about the treaty change process and Mr Delors’s pessimistic analysis, financial markets are increasingly optimistic that EU leaders are edging towards a deal to support the eurozone.
The FTSE 100 jumped 62.95 points to 5552.29 last Friday. British shares rose by 7.5 per cent last week, the biggest weekly rise in almost three years.
European markets also closed up, with the Dax in
Germany gaining 0.74 per cent and the Cac 40 in France up 1.12 per cent.
Earlier, Asian markets closed slightly higher, with Japan’s Nikkei index up 0.5 per cent and Hong Kong’s Hang Seng 0.2 per cent higher.
Full interview at telegraph.co.uk/europe Autumn Statement reports: Pages 10-11 Comment: Pages 18-20 Business: Pages 33 & 35
By Robert Winnett and Bruno Waterfield in Brussels BRITAIN has entered a second credit crunch, Downing Street said last week, as America was forced to intervene to stop the eurozone crisis leading to a global financial collapse.
The US Federal Reserve spearheaded a scheme by central banks around the world, including the Bank of England, to lend money to ailing European banks that were struggling to borrow.
The emergency action to stop the international financial system from freezing up again was prompted by rumours that a European bank was facing difficulties and could not raise money. Panic started to spread through the German bond markets, which threatened to result in a credit freeze for European banks.
British banks have been warned by the Financial Services Authority, the City watchdog, that they must make preparations for the collapse of the single currency.
Last week, Downing Street sources insisted that the global economy was not facing a “Lehman’s moment”, in reference to the collapse of the American investment bank in 2008. However, a spokesman for the Prime Minister said: “Clearly there is a very serious situation in the financial markets at this time. We are experiencing a credit crunch and that central bank action is about trying to mitigate the effects of that credit crunch. They are ensuring they have the capacity to take action.”
The eurozone debt crisis has led to growing fears in financial markets about the stability of major European banks. Investors, particularly US money-market funds, are increasingly worried that the European banks are exposed to huge losses on loans they have made in Greece, Italy and other indebted eurozone countries.
The intervention last Wednesday by central banks led to a sharp increase in
‘One bulb goes out and the whole thing is useless.
It’s like the euro’
stock markets around the world.
Last Wednesday, before the New York stock market opened, regulators invoked special powers that would have enabled them to suspend trading if share prices were to begin swinging wildly. The Federal Reserve said it was intervening even though “US financial institutions currently do not face difficulty obtaining liquidity in short-term funding”, because of fears that the euro crisis could derail markets in America and Asia.
In a statement, the Bank of England said: “The Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the Federal Reserve, and the Swiss National Bank are today announcing coordinated actions to enhance their capacity to provide liquidity support to the global financial system.
“The purpose of these actions is to ease strains in financial markets and thereby mitigate the effects of such strains on the supply of credit to households and businesses and so help foster economic activity.”
In another day of turmoil in Brussels, European finance ministers also admitted that they had failed to raise enough funds for a rescue fund to prop up the single currency.
Olli Rehn, the European Commission vice-president responsible for economic affairs, warned that a summit of Europe’s leaders on Friday was now crucial.
Herman Van Rompuy, the EU’s president, said that Europe’s governments needed to “confront” a looming catastrophe.
Alain Juppé, the French foreign minister, raised the stark prospect of a return to violent conflict on the Continent.
“It is an existential crisis for Europe,” he said. “We have flattered ourselves for decades that we have eradicated the danger of conflict inside our continent, but let’s not be too sure.”
Following a meeting of EU finance ministers in Brussels last Wednesday, details began to emerge of an ECB and International Monetary Fund deal to help rescue distressed euro countries. A bail-out fund would be only half as big as originally promised, €625 billion (£535 billion) rather than €1.2 trillion. Wolfgang Schäuble, the German finance minister, signalled that Germany was ready to relax opposition to European Central Bank involvement in protecting the euro via IMF interventions.
“We are prepared to increase the resources of the IMF through bilateral loans. Naturally, it is the central banks in the end,” he said.