June 11 (<a href=quote.bloomberg.com>Bloomberg) -- Brazil's stock index fell for a second day in three, led by Tele Norte Leste Participacoes SA, the country's largest phone company, on investor concern the government will grant fixed-line operators a lower-than-expected rate increase.

The benchmark Bovespa index of the most-traded stocks on the Sao Paulo stock exchange fell 0.8 percent to 13,786.85 at 1:12 p.m. New York time. The Bolsa index of shares traded on the Mexican stock exchange in Mexico City rose 25.95, or 0.4 percent, to 6950.94.

Finance Minister Antonio Palocci, who met with phone company officials last night, said a planned increase on tariffs for fixed- line service will be lower than the IGP-DI inflation rate -- currently at 30.05 percent for the 12 months ending in May -- that was stipulated under their contract.

We need to know what the rate increase will be to assess a fair price for the shares,'' said Debora Morsch, who helps manage the equivalent of about $52 million in stocks for Solidus Administradora de Recursos SA in Porto Alegre, Brazil. It seems negotiations aren't going very smoothly.''

The communications ministry was supposed to release the rate increase for the phone calls last night but said that after meeting with the companies it would make public a decision by the end of the week.

In other markets, the main stock indexes in Argentina ad Peru rose, while in Chile and Venezuela they fell.

The following stocks are having significant gains or losses in Latin American markets today. Symbols are in parentheses after the company name. In Brazil the preferred share is usually the company's most-traded class of stock.

Brazil

Telemar (TNLP4 BS) fell for a third day, losing 60 centavos, or 1.7 percent, to 35 reais.

Cia. Energetica de Sao Paulo (CESP4 BS), the power generator for Brazil's biggest city, fell 39 centavos, or 4.5 percent, to 8.25 reais. ``Cesp is not a company we recommend due to its high indebtedness,'' said Pedro Batista, an analyst with Banco Pactual SA in Rio de Janeiro.

Empresa Brasileira de Aeronautica (EMBR4 BS), the world's fourth-largest aircraft maker, rose 11 centavos, or 0.8 percent, to 13.98 reais, adding to a 17 percent jump yesterday after JetBlue Airways Corp. placed an order for 100 new Embraer-190 jet aircraft. Embraer values the contract at $3 billion, with a potential value of $6 billion if all 100 options are exercised. ``We are have a small position in Embraer and after this announcement we are reconsidering to see if it would be a interesting to increase it,'' Solidus' Morsch said.

Petroleo Brasileiro SA (PETR4 BS), the state-controlled oil company, rose 29 centavos, or 0.6 percent, to 52.99 reais. Petrobras remains one of our top picks,'' Marcelo Mesquita, an equity strategist with UBS Warburg SA, wrote in a report. We believe there is a buying opportunity ahead of what we expect to be strong second-quarter results.''

Mexico

Cemex SA (CEMEXCP MM), the world's third-largest cement maker, slid 1.11 peso, or 2.3 percent, to 47.10 pesos after Daniel Altman, an analyst at Bear Stearns & Co. in New York, downgraded his recommendation on the stock to peer perform'' from outperform.'' ``We continue to view Cemex as a show-me story and are reluctant to adjust higher our estimates and target until we see further signs of progress,'' he wrote in a research note.

Fomento Economico Mexicano SA (FEMSAUBD MM), Mexico's largest beverage company, gained 66 centavos, or 1.5 percent, to 44.15 pesos. The shares have gained 16 percent this year.

Grupo Financiero Banorte SA (GFNORTEO MM), Mexico's fourth- largest bank, slipped for the third day in four, losing 24 centavos, or 0.8 percent, to 28.51 pesos. Roberto Attuch, an analyst at Credit Suisse First Boston, cut his rating on the bank to underperform'' from neutral'' this week on concern low interest rates will hurt the bank's profit.

Wal-Mart de Mexico SA (WALMEXV MM), Mexico's largest retailer rose 34 centavos, or 1.1 percent, to 30.40 pesos, after reaching a 52-week high of 30.5 pesos in earlier trading. Expectations for stronger U.S. growth in the second half of the year may help boost consumption in Mexico. The U.S. buys almost 90 percent of Mexican exports, accounting for a quarter of the country's $600 billion gross domestic product.

Argentina

Grupo Galicia (GGAL AR), the country's second-largest bank, rose 4 centavos, or 3.6 percent, to 1.15 peso, heading to its highest price since July 2001 after the bank reported its first- quarter loss narrowed to 59 million pesos ($21 million) from 2 billion pesos in the same period last year.

Molinos Rio de la Plata SA (MOLI AR), which produces pasta and oils, rose 8 centavos, or 1.6 percent, to 5.18 pesos. The company paid $4.5 million to buy the remainder 39 percent of winemaker Bodegas Nieto Senetiner SA.

Peru

Edegel (EDE PE), Peru's biggest non-government power generator, rose 3 centimos, or 2.4 percent, to 1.26 soles. Last week, the company sold 100 million soles in local bonds to replace dollar-denominated maturing debt. Most of the company's revenue is denominated in sol currency.

Grana y Montero SAA (GRAM/C PE), Peru's leading construction company rose 1 centimo, or 3.1 percent, to 33 centimos. The company plans to sell $50 million in bonds in the Peruvian market to finance development projects.

Volcan Cia. Minera SA (VCM/B PE), Peru's main zinc producer, rose 1 centimo, or 3.1 percent, to 33 centimos. The company has said it allowed due diligence review of its assets and books to a Swiss, a Brazilian and a Peruvian company as it looks for a partner. Volcan had reported annual for the past two years because of weak zinc prices.

Biscayne Bay Tribune Online BY LAURA SEBASTIAN

Medusa Beauty Salon owner Mayglet Daly says the name for her shop stemmed from a day at the beach with her husband. As a young girl growing up in Venezuela, Mayglet Daly loved all things to do with beauty and could usually be found experimenting with makeup, new hairstyles and the latest in fashion trends. But her experiments didn’t end with herself; soon everyone from family to friends would come to her for makeovers.

And so it seemed natural that this girl would one day not only win a beauty contest — she was Mrs. Venezuela in the 2001 Mrs. World pageant — but would make her living in the business of beauty. In April, one of Daly’s dreams came true when she opened the Medusa Beauty Salon in Coconut Grove at 2809 Bird Ave.

“I’d wanted to own a salon since I was a little girl,” Daly said. “So this is wonderful and exciting and suits me perfectly.”

And Daly, 36, certainly has found a perfect fit. She earned her beautician’s license in Venezuela in 1987 and, after two years of studying here, will soon have her license in America.

But why the name Medusa — a mythological creature known for serpent-entwined hair and a face so hideous the sight of it would turn men to stone – for a beauty salon? Daly said the name came to her after a day on the beach in Miami with her husband.

“It was humid and I’d been swimming and my hair had dried all frizzy and was springing every which way,” said Daly. “My husband took one look at me and said, ‘You look like Medusa’ and I thought that was funny, so that’s where I got the name.”

Perhaps the name is, in a sense, ideal. A trip to Daly’s salon, open Tuesday through Saturday from 10 a.m. to 7 p.m., will turn any modern day Medusa into a beauty. With three employees on staff, the salon offers an array of services at affordable prices. Men, women and children are welcome, and the services offered range from haircuts, hair coloring, permanents and straightening, to waxing, manicures, pedicures, and even professional make up sessions. To encourage new customers, Medusa also offers special savings on Tuesday and Wednesday when men’s haircuts are $10, kids’ haircuts are $6 and manicure/pedicures are $20.

Daly first visited Miami in 1990. “I loved the opportunity I saw here,” she said. “So I spent the next four years working here at the Venezuela Air Force’s Office of Acquisitions. I was a buyer of airplane parts.”

Though she knew she would eventually settle permanently in Miami, in 1994 Daly went back to Venezuela to attend college, while simultaneously working in the purchasing department of a tire manufacturing company. She graduated from Venezuela’s University of Carabobo in 1999 with a degree in human resources and a feeling of gratitude for being able to experience college life.

“Many people in my country don’t have the money to attend college, it’s not even an option for them,” Daly said. “So it was something I felt lucky to be able to do.” It was while attending school and working at the tire manufacturing company that Daly also met her husband, Victor, who was then employed as a supplier for the Venezuelan branch of DuPont. The couple met when he came to her manufacturing company one day to make a sales call.

“I guess he was a seller and I was a buyer,” she said with a laugh.

The couple married in 1995 and a few years later Daly’s life took a glamorous turn when a friend suggested she enter the Mrs. Venezuela pageant, which led to the Mrs. World Pageant. The pageant is for married women — young wives, mothers and even grandmothers are eligible to enter — from around the world.

“At first I said no when it was suggested I enter the contest, but then I thought it might be fun, and it was. I met so many wonderful women,” Daly said.

After being crowned Mrs. Venezuela 2001, Daly headed for Las Vegas to compete against women from 49 other countries in the Mrs. World Pageant. Though it was Mrs. India who ended up winning that year, Daly said she had a wonderful time in Las Vegas, where her two-week stay was filled with sightseeing, rehearsals and, finally, with the televised pageant itself.

“I was honored to be Mrs. Venezuela,” Daly said. “But I never had any intention of going on to compete in other pageants. My real dream was to concentrate on my husband, to have children and, eventually, to own my own business.” With the recent birth of her first child, son Jesus Gabriel, and the opening of Medusa’s Beauty Salon, it seems all of Daly’s dreams have come true.

“This is a wonderful time for me,” she said. “I love everything about owning and running the salon. I even did the design and decoration of the salon myself so each aspect of the business is very much mine. But my favorite part of it is making people happy and helping them to feel good about themselves.” For more information, call 305-443-9776.

<a href=www.khilafah.com>Khilafah

The Middle East has in many senses been the fulcrum of western interest since the end of the Second World War. Oil functions as the world’s most important commodity, when most western companies largely own the oil resources in the various Middle-Eastern states the aim is to maintain direct control of the production and distribution of this oil and its resulting profits.

Despite the fact that American forces turned a blind eye to the looting of Iraq’s archaeological treasures, they moved quickly to gain control over oilfields, refineries and pipelines. Even before Iraqi resistance had been routed, top U.S. officials were already boasting that Iraq’s oil infrastructure was safely in American hands.

Iraq alone possesses the world’s second largest proven oil reserves, currently estimated at 112.5 billion barrels, about 11% of the world total and its gas fields are immense as well. Experts in the West believe that Iraq has additional undiscovered oil reserves, which might raise the total well beyond 250 billion barrels when serious prospecting resumes, putting Iraq closer to Saudi Arabia and far above all other oil producing countries. Iraq’s oil is of high quality and it is very inexpensive to produce ($1), making it one of the world’s most profitable oil sources.

No doubt oil companies hope to gain production rights over these rich fields of Iraqi oil, worth hundreds of billions of dollars. In the view of an industry source it is “a boom waiting to happen. As rising world demand depletes reserves in most world regions over the next 10-15 years, Iraq’s oil will gain increasing importance in global energy supplies. There is not an oil company in the world that doesn’t have its eye on Iraq.” Geopolitical rivalry among major nations throughout the past century has often turned on control of such key oil resources and its access.

In a world that runs on oil, the nation that controls the flow of oil has considerable strategic power, not only over the terms of its own consumption but over other nations. US policymakers want leverage over the economies of bigger competitors, Europe, Japan and China, which are more dependent on Middle Eastern oil.

Last year, world demand was 75 million barrels a day, with more than half going to the West, and the International Energy Agency (IEA) forecasted a rise of 2.4% this year. The reason for the raise in demand for oil is simply economic growth in the rich nations. As their industrial production increases, industry needs more energy. It also needs more fuel to transport its products and raw materials. By 2020, the Gulf will supply between 54% and 67% of the world's crude oil, making the region -vital to U.S. interests.

Moreover, shops and offices need increasing amounts of energy to provide heat, lighting and air conditioning. Economic growth also brings with it consumers who spend more on energy-hungry leisure activities, such as motoring. Oil is the biggest single source of the world's energy, - it’s bloodline.

While it is true there is a mammoth wealth in oil, the economic gap in terms of the flow of petro-dollars between the rich countries and the oil states has always been uneven. The price of oil is lower in real terms since the Second World War; lower than a bottle of mineral water. This has been beneficial to the U.S. It has always wanted the oil price to remain within a set range, though if too low it will harm American manufacturers and if too high will be harmful to the profits of the energy producers. In Britain the government generates more money in oil through taxes than Saudi Arabia. Further-more, maintaining low oil prices, allows oil money to flow right back to America in the form of U.S. security treasuries [bonds], construction projects and military production, and so on. In effect, it allows the US to have their oil and guzzle it. While corrupt and repressive regimes, poor technological know-how within the oil industry, abject poverty, environmental pollution, unemployment and low remunerations characterise those living in the oil nations.

The fairy tale that the oil states can use oil as a weapon over the West through OPEC by threatening to cut off supplies whenever they wish is now indisputably ebbing away through the deal the U.S. signed at the UN, giving her full control over Iraq’s oil money, and a governmental system of her choice, which certainly signals the final death of OPEC. An organisation that the US has previously indirectly controlled in any event. Moreover, Thomas Friedman in the New York Times, stated that “bringing Iraq fully back into the oil market could lead to a sharp fall in oil incomes throughout OPEC that could seriously weaken the oil cartel and rob its many autocratic regimes of the income they need to maintain their closed political systems. In fact, give me sustained $10-a-barrel oil and I'll give you revolutions from Iran to Saudi Arabia, and throw in Venezuela. If that scenario prevails, you could look at an invasion of Iraq as a possible two-for-one sale: destroy Saddam and destabilise OPEC at the same time. Buy one, get one free”.

Surely U.S. policymakers must be exultant for the naivety displayed by the Muslim rulers so far, who did not know what hit them. The control of Iraq’s oil is just part of the grand plan, which is eliminating the will of any state to defy US global hegemony, and to directly control the region and all its resources. The ruling royal family of Saudi Arabia (numbering by some estimates as few as 7,000, by others as many as 30,000), depend on oil money to support the lifestyles of thousands of indolent princes, while at the same time continuing to bribe the country's work-averse young masses with free telephones, water, almost-free gasoline, and other goodies that keep them from overthrowing the monarchy. Saudi Arabia's budget, which counts on oil exports for 70 percent of its revenues, will be in deficit this year, in good part because of princely payments to the royal family and handouts to the restless and unemployable graduates in traditional studies being churned out by the state.

The Muslim rulers collaborate with the West to keep the Ummah’s wealth to themselves, from Saddam Hussein to Paul Bremer, the current U.S. administrator. The Ummah must continue to call for a regime change across the Muslim world, just like Rasul-ul-Allah (SalAllahu Alaihi Wasallam) across Jazeeratul Arab.

Defence Secretary Donald Rumsfeld in response to the Iraqis demands of an Islamic state said it “will be aggressively put down”. The Ummah should disregard such threats and exert their utmost to establish such a state for it is Fard upon her. This entity will surely seek to gain political control for the Ummah and her resources. Simultaneously oil must seem to be used as a weapon, thereby bringing an end to Western hegemony over the Muslim world, this will be the true guarantor of a fair oil cash flow to the Ummah.

The U.S. would be doing the future Dowla Islamia (Islamic state) a great favour by confining OPEC to the dustbin of history; equally the state should not recognise OPEC as it harms the interest of the Ummah and the ownership of Western companies over the Ummah’s resources. Rather it must use its military might to secure the Ummah’s resources as stipulated by Rasul-ul-Allah (SalAllahu Alaihi Wasallam):

“People share in three things: Water, Pasture, and Fire” (oil).

• narrated by Ahmad.

Consequently, this would send the West a clear message to keep their hands off our wealth.

Al-Dowla Islamia will generate public awareness against the one way flow of oil profits maintained by Western financial institutions over the issues of low pricing, through public debates, foreign policy propaganda etc. The forceful seizure of Iraqi oil fields can be brought to the forefront of the world public arena in order to remove America’s control.

The oil sector can be strengthened through technological expertise in petroleum engineering, deep-studies in inland and offshore exploration, and petro-chemical processing by providing funds in education, universities and new technical centres, whilst utilising the expertise of those already in this field. Furthermore, technological transfer from less hostile states, like Japan and N. Korea in the future can be sought through oil deals. This must be backed by a clear industrial policy to build heavy and light industries that would at all times meet the energy demands of the Ummah.

The largest markets of oil trading are in London and New York. The state can change the direction of the flow of oil profits by repositioning and renewing the terms of trade on her turf. It must replace the current financial rules with Islamic trading rites, a fair market rather than free market should prevail by the re-pricing of crude oil to reflect its true value, whilst insisting on a quarterly allocation system depending on favourable political circumstances should produce the desired result of a fair flow of oil profits to the Ummah, and this can all be achieved only after Dowla Islamia has been established.

Abdulwahab Jibrin Khilafah.com Journal 11 Rabee Ath-Thanee 1424 Hijri 11 June 2003

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Posted on Wed, Jun. 11, 2003 MATT SEDENSKY Associated Press

HONOLULU - In the beginning, Hawaii was Hawaii. Think Burt Lancaster and Deborah Kerr on a deserted beach in 1953's "From Here to Eternity," or a surfboard-straddling Elvis Presley in 1961's "Blue Hawaii."

These days, though, this Pacific paradise is used less often for classic island images of breeze-tickled palms and gem-blue waves lapping a pristine beach. Instead, it's posing as a wide range of locales, from Nigeria and the Congo to Brazil and Venezuela.

Since 9/11, film and TV casts and crews have increasingly avoided foreign locations perceived as dangerous.

"Every month, people become more reluctant to go to more exotic, less secure places," said Bill Bowling, a veteran Hollywood location manager who has scouted in Hawaii. "Hawaii is situated just extremely well right now."

Hawaii also is more convenient to Hollywood. And for the island itself, playing various roles is good business.

"Hawaii - for it to be a player in this business - has to represent itself as more than just Hawaii," said Chris Lee, a former studio executive and producer who is now overseeing a new University of Hawaii program including film and digital arts. "If you said we're only going to be Hawaii, it's very limiting."

Since the beginning of film, moviegoers have seen Hawaii act as an impostor, from 1958's "South Pacific," in which Hawaii posed as an unnamed Pacific island, to 2000's "Jurassic Park III," which cast the state as Costa Rica.

Last year alone, the islands saw the filming of "Tears of the Sun," the Bruce Willis flick set in Nigeria; "Die Another Day," the James Bond film set off Korea; and "Welcome to the Jungle," the forthcoming movie with the Rock starring as a bounty hunter in Brazil's Amazon. Films generated an estimated $135 million for Hawaii's economy last year.

The islands have also played Tahiti ("Six Days/Seven Nights"), New Guinea ("Krippendorf's Tribe"), and Venezuela ("Dragonfly"), among other places.

"It's kind of limitless," said Timothy Hillman, another veteran location manager whose most recent project brought him to Hawaii for "50 First Kisses," an Adam Sandler/Drew Barrymore romantic comedy set on the island. "There's jungles where you can pretend you're anywhere in South America and Africa. There's places downtown that can pass for middle America."

To be fair, Hawaii does continue to play itself, as in last year's "Blue Crush" and "The Big Bounce." But, more and more, productions that might have previously ventured farther from home are ending up in the central Pacific.

The hit NBC show "ER," for example, first filmed on the islands in 2002, for an episode chronicling Dr. Mark Greene's final days in Hawaii before succumbing to a brain tumor. This year, the drama returned to film two more episodes - both set in the Congo.

"They were all determined that they were going to go to South Africa" to film, said location manager Ginger Peterson. "I was able to take pictures of (Hawaii) locations that nobody's ever shot at before and they were kind of blown away."

For years, the state-run Hawaii Film Office has been trying to spread the message that Hawaii offers a window into faraway worlds.

The office has run ads and inserted posters into trade magazines such as The Hollywood Reporter, billing the islands as "As close as faraway gets." After the Oscars, it ran an ad with an image from "Tears of the Sun," that read: "We've landed the roles of the Brazilian jungle, the Korean peninsula and war-torn Africa, not to mention Venezuela, England and Mars. Is there an Award for Best Location Double?"

The efforts, industry leaders say, appear to be working.

"You're seeing Hawaii being doubled for other locations more than Hawaii playing itself," said Donne Dawson, manager of the state-run Hawaii Film Office.

The reason: "A production was scouting Hawaii and another location in South America at the same time. The production crew that was out scouting actually got hijacked in the jungle," Dawson said. "They ended up saying 'That's it, we're going to Hawaii.'"

Hawaii still faces stiff competition from other locales, including Australia, New Zealand, Canada, Fiji and the Bahamas. Those places can sometimes offer similar settings, security, and better financial incentives. But they can't always duplicate the convenience.

The distance of the islands from Los Angeles means a weekend at home is not out of the question. And the small size of the islands means the commute time between accommodations and sets is relatively short.

Bowling, who has worked on productions in more than 70 countries in his 20-year career, said there are some drawbacks to filming foreign-set shots in Hawaii rather than on-location.

"Looks get used up," he said. "Everything's good about it but you've just sort of seen the place in many movies. You don't want the audience to think they've seen it before."

Still, many producers have been able to pull off unique looks. And they say the benefits are incomparable.

"I think it was the logical choice," said Chris Chulack, the producer of the "ER" episodes in which Hawaii shed its idyllic image to become a war-torn country in which the show's doctors risk their lives. "And it works out wonderfully at the end of the day when you get to go take a dip in the ocean."

ON THE NET

Hawaii Film Office: www.hawaiifilmoffice.com

<a href=www.vheadline.com>venezuela's Electronic News Posted: Wednesday, June 11, 2003 By: Patrick J. O'Donoghue

Venezuelan Ambassador to the Organization of American States (OAS) Jorge Valero says he's pleased with the election of Venezuelan Freddy Gutierrez as a member of the Inter American Human rights Commission ... "it's a triumph for Venezuelan diplomacy." 

Gutierrez is a lawyer, university professor and although he is not well known inside Venezuela in the human rights circles, Valero claims that Gutierrez has indeed has worked on human rights issues ... "he has the highest ethical and professional qualities." 

• The lawyer split from Causa R to join Patria Para Todos (PPT) and is said to be an expert on foreign debt. 

34 OAS member countries voted Gutierrez  in, despite pressure from the USA fielding a candidate for the same post. Chilean newspapers consider the election a blow for US aspirations to regain lost ground.

Things are said to have been sluggish for US Secretary of State because OAS members are not keen on the US call for concerted diplomatic pressure on Cuba ... instead countries have complained that the US have been taking too many things for granted in US-Latin American relations pointing to the presence of a minor US official at the inauguration of Argentinean President Jorge Kirchner.

As a leader of Causa R in 2000, Dr. Gutierrez Trejo had served on the then Chamber of Deputies special committee to study Venezuela's foreign debt commitments.  He had lectured on Legislation & Protection of Public Patrimony, Constitutional Principles, Norms & Inalienable Rights and has a prestigious track record in the defense of human rights in Venezuela.  He also served on the AN Committee for integration and Foreign Community relations.

Gutierrez went on record a couple of decades back (1982), commenting the then "tequila crisis" in Mexico, where Venezuela discovered it had an external debt of approximately $40 billion, of which $5 billion was strictly State indebtedness, that $35 billion was foreign commercial debt acquired by State-owned entities CANTV, SIDOR, VENALUM, PDVSA and a group of important joint venture organizations particular to the Venezuelan government.

"The first deal was detrimental to Venezuelan interests," Gutierrez is quoted as saying.  "The first agreement for the reconstruction of Venezuela's foreign debt was a monstrosity, Venezuela's legal counsel in New York did nothing to protect our interests."  Instead, payments made on foreign debt from 1983 onwards were only payments of interest ... indicating that Venezuela's foreign debt remained at $40 billion with no capital repayments.