Chrysler said it has deal; GM on ropes
WASHINGTON, March 30 (UPI) -- President Barack Obama said Monday the government would not allow the U.S. auto industry to "simply vanish."
"We cannot, we must not, and we will not let our auto industry simply vanish," Obama said in remarks explaining the government's tentative response to General Motors Corp. and Chrysler LLC's request for additional loans.
The U.S. government gave General Motors Corp. and Chrysler LLC 60 days and 30 days, respectively, to make drastic changes or face bankruptcy.
Soon after, Chrysler Chief Executive Officer Bob Nardelli announced: "Chrysler, Fiat and (Chrysler's owner) Cerberus have reached agreement on the framework of a global alliance, supported by the U.S. Treasury."
The partnership, if successful, would secure a $6 billion loan from the government, he said.
The Finanicial Times reported the government had said it would supply working capital to the companies, but not beyond the deadlines imposed -- a deadline Chrysler has, apparently, met.
Nardelli's statement did not include details on the deal, but previous reports have said Fiat would own 35 percent of Chrysler, which would build Fiats in the United States.
Obama said, "What we are asking is difficult," explaining "unions and workers who have already made painful concessions" would have to make "even more."
GM was directed to reach further benchmarks in reducing debt and to obtain concessions from union workers, as the government's automotive task force said the company did not prove it was financially viable.
Obama said Sunday it would "mean a set of sacrifices from all parties involved."
"Everybody is going to have to come to the table and say it's important for us to take serious restructuring steps now in order to preserve a brighter future down the road," he said, adding, "they're not there yet."
GM was directed to continue seeking new leadership. Chairman and Chief Executive Officer Rick Wagoner resigned.
The Detroit News reported Fritz Henderson, who ran GM's European and Chinese operations and who had been overseeing the company's restructuring on a day-to-day basis, would take over as CEO. Kent Kresa, chairman emeritus of Northrop Grumman, will serve as chairman.
In a statement, Henderson said, "the administration has made it clear that it expects GM to expand and accelerate its restructuring efforts. I want the American people to know that we understand and accept this guidance. The road is tough, but the ultimate goal -- a leaner, stronger, viable GM -- is one we share."
G20 Chambers warns against protectionism
LONDON, March 30 (UPI) -- An international coalition of Chambers of Commerce said before a London summit meeting that nations should try to avoid the "temptation of protectionism."
"Falling to the temptation of protectionism would not only restrict trade in goods and services, but also distort the global economy, hindering rather than helping the recovery," the G20 Chambers said in a statement.
The group said its respective national chambers had found "general satisfaction" for their nation's financial rescue plans, although plans country-to-country vary "significantly."
"National measures concerning investment in infrastructure, access to financial and employment, have been put in place … and should thus help in addressing the crisis in the short term," the statement said.
For the long-term, however, "the responsibilities and composition of the International Monetary Fund, the World Bank and the Financial Stability Forum should be carefully reassessed," the G20 Chambers said in a statement.
"In addition, the World Trade Organization must continue to play its role as global governor of the multilateral trading system," the statement said.
A Group of 20 summit meeting is scheduled to begin Thursday in London.
Israeli military: Gaza abuse claims false
JERUSALEM, March 30 (UPI) -- The Israeli military Monday rejected allegations that soldiers committed atrocities against Palestinians in Gaza during fighting in December and January.
Military officials issued their rejection of the allegations after military police investigated claims made during a conference that the army deliberately killed civilians and damaged property during Israel's military operation in the strip during December and January, CNN reported.
The allegations were "based on hearsay" and weren't supported "by the facts as determined by the investigation," Israeli military advocate general Brig. Gen. Avichai Mendelblit said in a statement. He said he concluded "the stories told were purposely exaggerated and made extreme in order to make a point with the participants of the conference."
Earlier in March, Israeli soldiers said Palestinian civilians were killed and property destroyed during the country's Operation Cast Lead, which was run to stop militants from firing rockets from Gaza into Israel, Haaretz reported. In the newspaper account, Israeli soldiers said they were left with the idea that "inside Gaza you are allowed to do anything you want" based on the rules of engagement they received, CNN said.
Others have charged Israel with committing atrocities. Human Rights Watch claimed that Israel fired white phosphorus shells "repeatedly over densely populated areas." White phosphorus burns on contact with oxygen. It is legal to use it to illuminate but Human Rights Watch alleged Israel used it as a weapon, a claim Israel has rejected.
Other Israeli investigations into the conduct of its troops in Gaza are under way.
U.S soldier pleads guilty to Iraqi's death
VILSECK, Germany, March 30 (UPI) -- A U.S. soldier pleaded guilty Monday to killing a bound Iraqi prisoner, telling the court-martial he thought the death was the best action for his soldiers.
The court-martial could sentence Sgt.1st Class Joseph P. Mayo to life in prison after he pleaded guilty to the killing at the beginning of his trial at the U.S. Army base in Vilseck, Germany, The Times of London reported.
Mayo pleaded guilty to charges of premeditated murder and conspiracy to commit premeditated murder. He and a group of soldiers allegedly shot and killed four tied-up and blindfolded Iraqi prisoners, then dumped the bodies into a Baghdad canal in 2007. The deaths came after attacks on a U.S. Army patrol killed two soldiers.
"I thought it was in the best interests of my soldiers," Mayo said when asked by the judge he thought he had the authority to shoot the prisoner.
Mayo is one of seven military personnel initially implicated in the case. One sergeant pleaded to similar charges and was sentenced to life in prison, another official is awaiting trial, two other soldiers pleaded guilty to lesser charges, while charges against two others were dropped.
Weather-weary Fargo-Moorhead eyes blizzard
FARGO, N.D., March 30 (UPI) -- Residents in the Fargo-Moorhead area of North Dakota and Minnesota watched as the Red River receded Monday, though still on the lookout for a blizzard.
While the blizzard's track indicates Fargo-Moorhead will miss the brunt of the storm, the flood-ravaged area still was expected to experience strong winds and see up to a foot of snow accumulate through Tuesday, AccuWeather.com reported.
Anticipating another round of nasty weather, Fargo city officials called on all non-essential businesses to remain closed through Wednesday. In addition, officials said the U.S. Coast Guard planned to put in place regulations that would enforce penalties for people boating on the Red River who weren't authorized, The Forum of Fargo-Moorhead reported.
Fargo Public Schools officials decided Monday to resume classes next Monday. But first the district must reclaim buses used for evacuations last week, re-arrange bus routes and recover several of their schools, the Forum reported. Four schools are occupied by the National Guard and two others are being used as shelters.
The Red River at Fargo crested just below 41 feet early Saturday morning and has fallen through the beginning of the week to 39.44 feet early Monday. Flood stage is 18 feet.
Sustained winds were expected to reach 25 mph, with gusts of at least 40 mph, threatening to create waves in the floodwaters that could slosh over the levees, forecasters said. Forecasters said once the ground begins to thaw and moisture from nearby flood waters saturates the soil in some locations at the base of the levees, there was the risk of water percolating up from beneath the levee, causing a washout from the bottom.
