05-21-2012

Baseball rallies past Gauchos for sweep.

SPORTS, pg. 8

Volume LXXVI, Number 125

Monday, May 21, 2012

Local faculty union denies election fraud allegations

SEAN MCMINN/MUSTANG DAILY

Cal Poly California Faculty Association chapter members began voting for officers last week despite allegations raised by a former member. The CFA office (above) is located in the Math and Science building, room 141.

SEAN MCMINN

seanmcminn.md@gmail.com

A former Cal Poly professor brought charges of corruption and illegal conduct in the local California Faculty Association (CFA) chapter to the state level last Tuesday, but union leaders said each of the accusations are baseless.

Gail Wilson, a former chemistry professor and current volunteer member on the local union’s election committee, said Cal Poly CFA President Glen Thorncroft is committing fraud by allowing a retired business administration lecturer to run for the lecturer representative position at Cal Poly’s CFA chapter. The issue, Wilson said, is that Cal Poly

has not formally employed Jere Ramsey since 2010, though she does still substitute to teach some courses.

In an email to statewide union president Lillian Taiz last Tuesday, Wilson called on Taiz to intervene in the local vote, which is scheduled to end May 24. “(Thorncroft) does whatever Jere Ramsey and the CFA tell him to do,” Wilson said. “He doesn’t think if it’s right or wrong, he just does it.”

But Thorncroft said his actions were entirely proper, and he had approval from statewide CFA headquarters before he moved forward to allow Ramsey to run. Multiple emails sent to Thorncroft by

CFA officials specifically state that Ramsey is eligible to run as a lecturer candidate. Wilson, however, said she takes issue with the criteria that makes an individual eligible for the lecturer representative position.

Under statewide CFA rules, Ramsey is allowed to run because she is “grieving nonappointment,” or appealing Cal Poly’s decision to terminate her teaching contract with the university. Cal Poly’s CFA bylaws, however, state that an individual must have “status as a lecturer” to run for the position.

What the two do agree on is that the issue rises from unclear wording in union bylaws. see CFA, pg. 2

www.mustangdaily.net

Eclipse dims Cal Poly VICTORIA BILLINGS

victoriabillings.md@gmail.com

An eclipse darkened the California sky yesterday afternoon, and San Luis Obispo residents were able to see the shadowed moon, surrounded by a “ring of fire,” shortly before sunset.

The moon passing in front of the sun for a short period of time created the eclipse — the first of its kind in more than a decade for the western United States, according to NASA’s website on the eclipse.

The eclipse was an annular one, though, meaning that the sun was not entirely darkened by the moon.

Yesterday the moon passed through apogee, or the farthest point in its orbit from the Earth, so the moon was relatively small in comparison to the sun, allowing for an abnormally large amount of the sun, known as a “ring of fire,” to be seen, according to NASA. The antumbra, or shadow cast by the moon, was visible itself throughout Asia and parts of North America.

The eclipse began its trip in China yesterday, before passing over Japan and the Pacific Ocean to reach northern California. It then dipped down toward New Mexico and Texas, while being partially visible in much of the western United States. Eventually, it was

no longer visible as the sun set and the moon continued its orbit, according to NASA. At Cal Poly, students gathered at the University Union (UU) Plaza to watch the eclipse, which began at 5:21 p.m., with maximum eclipse at 6:36 p.m.

The solar eclipse was the first one for many of the Cal Poly students, such as electrical engineering freshman Chris Boyer.

“I’ve never seen one before, so this is pretty awesome,” Boyer said.

Materials engineering freshman Alex Miller, who was in the UU for a class poetry reading and stopped to watch, fashioned a camera obscura out of a piece of paper to view a projection of the eclipse. His father taught him to make the device.

Though the public is warned not to look at an eclipse directly, many students found out about it last minute, and came unprepared to view, agribusiness freshman Brooke Bradshaw said.

Bradshaw and friends instead squinted at the sun for short periods of time to see it, she said.

The event was aweinspiring, though, for Bradshaw, who said she was impressed by the magnitude of the eclipse.

“It kind of reminds you that you’re Earth, and you’re small,” Bradshaw said.

WORD ON THE STREET What causes a solar eclipse?

“The rotation of the earth.”

• Natalie Stevens kinesiology freshman

“The moon coming into alignment with the sun.”

• Lauren Aviles business administration freshman

Grant speeds electric Porsche to faster time “It’s when the moon crosses over the sun.”

• Juan Ojede industrial engineering senior

MAGGIE KAISERMAN/MUSTANG DAILY

Cal Poly Motor Car Association was recently awarded more than $9,000 in a grant from the Collectors Foundation to help fund its Electric Porsche Project.

DAVID YRIARTE

davidyriarte.md@gmail.com

Cal Poly Motor Car Association (CPMCA) was recently awarded a grant by the Collectors Foundation that will help fund a significant portion of

its Electric Porsche Project.

Since the Electric Porsche Project started last year, CPMCA has been applying for grants to fund the restoration and rebuilding of the vehicle. The recent grant of more than $9,000 will help pay for

CHECK OUT MUSTANGDAILY.NET

for articles, videos, photos & more.

a majority of the interior, exterior and engine restoration — equalling approximately 50 percent of the project’s cost, according to CPMCA President Sam Cates.

“We immediately started to build publicity for the project,

ARTS, pg. 4 Tyrone Wells returns to San Luis Obispo.

so we could get bigger players to help us with funding,” Cates said. “We started to apply for grants in February in hopes that one would find interest in our project.”

The Collectors Foundation took an immediate interest in

Tomorrow’s Weather: high Sunny

75˚F

low 52˚F

CPMCA’s project. The Foundation is an educational grantmaking organization funded by vehicle collectors and classic boat enthusiasts to serve youth development and long-

“The sun behind the moon.”

• Jack O’Brien construction management freshman

see PORSCHE, pg. 2

INDEX News.............................1-3 Arts..............................4-5

Opinions/Editorial...........6 Classifieds/Comics..........7 Sports..........................7-8

MDnews 2 CFA continued from page 1

“The previous bylaws were so boring and complicated, I actually didn’t finish reading them,” Ramsey said.

Wilson said the “status of a lecturer” requirement makes Ramsey ineligible, though Cal Poly union leaders unanimously voted that her grievance with the univer-

sity demonstrates her status, Thorncroft said. He said he had never spent more time looking over four words than he did while debating the meaning of “status as a lecturer.”

“I feel very confident that a democratic process took place at the executive board,” Thorncroft said. “I refuse to accept we did things improperly.”

The email to Taiz calling on her to reign in Cal Poly’s CFA chapter is the latest in months of conflict between Wilson

Monday, May 21, 2012 and chapter leadership.

Another instance came early during winter quarter when Wilson served on a committee with Thorncroft, Ramsey and others aimed to rewrite some of the vague chapter bylaws.

According to Ramsey, Wilson asked for only a few changes and was upset when Ramsey suggested a more “substantial” revision of the rules.

“It was really obvious that was very upsetting to her,” Ramsey said.

Wilson, however, said Ramsey tried to take complete control of the bylaws and manipulate Thorncroft to make improper changes. Ramsey and others in the local CFA chapter said the allegations are simply not true.

“With great respect to Gail, she doesn’t know what the hell she’s talking about on this,” Thorncroft said.

Further tension rose between union leadership and Wilson when she filed a Freedom of Information Act request to view Ramsey’s record of employment at Cal Poly without telling members of the union, Thorncroft said.

Ramsey said she would have

gladly given Wilson the information had she asked for it and was shocked that Wilson felt the need to file the request.

Thorncroft said this request, combined with a letter to the local executive committee declaring Ramsey ineligible for the position, prompted him to ask her to resign from the election committee. He said she “lied” to the CFA membership by writing that Ramsey was ineligible, despite the fact she had already received an email from union leaders declaring Ramsey as an eligible candidate.

“I felt her actions were dishonest,” Thorncroft said.

“I felt her actions were ‘going after’ Jerry for reasons I didn’t understand. That’s why I asked her to resign from the elections committee. I thought she was being at the very worst unethical, at the very least not collegial.”

Statewide CFA spokesperson Alice Sunshine said whenever local bylaws conflict with state ones, the states’ takes precedence over the local chapter’s.

Though Wilson argues there is no conflict between the two — just a further regula-

I feel very confident that a democratic process took place. ... I refuse to accept we did things improperly.

GLEN THORNCROFT CAL POLY CFA PRESIDENT

tion added to the local regulations declaring the lecturer representative must have “status as a lecturer” — Sunshine said the union will enforce the states’ rules, which means Ramsey is eligible.

Wilson, however, said she refuses to believe that Ramsey is an eligible candidate and hopes that her letter to the CFA statewide president will convince union headquarters to come down on Cal Poly’s chapter.

“Statewide should do something about it, instead of making excuses for (Ramsey),” Wilson said. “I’m trying to find someone they will listen to, because they’re not listening to me.”

The possibility of a lawsuit, Wilson said, is not an option.

Though she previously at-

tempted to sue the San Luis Obispo Democratic Central Committee over similar personnel issues, she said she does not want to bring charges against Cal Poly’s CFA chapter.

“A lawsuit takes a long, long time,” she said. “The last one took four years. I’m not interested in spending that much time.”

But that does not mean Wilson intends to give up any time soon. She said despite her lack of success in finding someone to side with her against Ramsey’s eligibility as a lecturer representative — so far statewide officials and Cal Poly’s CFA executive board have all disagreed with her — she is determined to prove her point.

“I’m not going to just let go,” Wilson said.

COURTESY PHOTO

Guy Ober (above), co-owner of SGS Motorsports, assists with the project by providing students with advice and other resources.

PORSCHE continued from page 1

term interests in the collector vehicle and classic boat communities, Collectors Foundation President and CEO Bob Knechel said.

Knechel personally reviews all applications and remembered CPMCA’s grant application. He said he was impressed with the professional look of the whole application and is interested to see the outcome of the project. “(CPMCA) sent me pictures of the Porsche and the students did a great job of presenting the material,” Knechel said. “The business plan was very detailed; the pictures looked great. Everything was done well all-around.”

The Electric Porsche Project team crafted a well-rounded proposal because members of the CPMCA come from all majors, Cates said. The team consists of business administration majors, engineers and even a veterinary science student. Having a wide variety of

majors is beneficial and helps focus on every aspect of the car, Cates said. The graphic design-oriented majors help with the visual appearance of the car, marketing students focus on getting sponsorships and the engineers focus on the mechanics.

“Having a diverse group helps us cover all aspects of this restoration; it is much like the real world,” Cates said. “We all tend to learn a lot for each other. I have learned more about cars and the mechanics while working with students.”

Though working on the Porsche is an excellent learning opportunity for students, Cates and CPMCA have a final goal of finishing the Porsche by 2013 so the team can compete in Speed Ventures’ REFUEL Races at the Mazda Raceway Laguna Seca in Monterey.

The REFUEL Races are held annually and feature electric cars and motorcycles to showcase the new and cutting-edge technology used in the motor industry.

“We want to enter and compete to prove to ourselves, as car enthusiasts,

WHEN YOUR CAR DESERVES THE VERY BEST! View repairs and progress online anytime!

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that the words ‘electric’ and ‘hybrid’ don’t necessarily mean the car is slow,” Cates said. “Working on this project is timely and appropriate in the grand scheme of the motor industry. We are learning a practical skill that can be applied to current trends.”

The Electric Porsche Project is also helping prepare the students for careers in the motor industry. To assist with this, Guy Ober, co-owner of SGS Motorsports on Higuera Street, has offered CPMCA both advice and resources.

“The whole local Porsche club has been very enthusiastic in helping with the project,” Ober said. “Getting the grant is a great thing.

(CPMCA) has had a lot of ideas, but they stuttered out due to lack of funds.”

Ober said he is excited to continue working with Cates and CPMCA. He has given them technical assistance, taught them the Porsche philosophy and said he enjoys working with a lively group of motor enthusiasts.

“This is a classic Cal Poly program,” Ober said. “There is so much talent and knowledge

within this team. This is a great example of how to blend it all together.”

With the help of Ober and the Collectors Foundation grant, CPMCA is bringing many of its ideas to fruition.

The grant will fund all-new seats, a dashboard, custom vinyl for the exterior and updating the already existing electric engine, Cates said.

Work on the Porsche is moving along, and Cates said he wants reiterate that the club is open to the entire university. CPMCA allows students the opportunity to view, work on the cars and give input for future projects. It is an excellent learning experience for those who want to pursue careers in the motor industry, he said.

“On behalf of the Cal Poly Motor Car Association, I am extremely thankful for the generosity and support from the Collectors Foundation,” Cates said. “To us, this grant represents so much more than funds. It represents the beginning of seeing a vision turn into reality and a validation of what we’re trying to accomplish. Now we have the means to do something big.”

MDnews 3

Monday, May 21, 2012

SLO 5-0

NATO leaders agree on Afghanistan exit plan

Saturday, May 12 8:00 a.m. Vandalism was reported on the 1200 block of Manzanita Way. 12:36 p.m. Shoplifting was reported on the 700 block of Foothill Boulevard.

Sunday, May 13 12:16 a.m. Someone was in possession of less than 28.5 grams of marijuana in Cerro Vista.

SLO COUNTY

STATE

SAN LUIS OBISPO —

SACRAMENTO —

TEXAS —

A man was arrested Saturday after he allegedly crashed a car into the center divide of Highway 101 near the Cuesta Grade and fled the scene with his two passengers.

Authorities found the three men approximately 10 hours later. The driver, 24-year-old Saul Aguilar, was booked for a felony hit-and-run.

Gov. Jerry Brown has proposed more cuts to programs that serve the state’s poorest residents.

Brown described it as a “day of reckoning” and wants fellow Democrats to slash as much as possible before he asks voters to hike taxes on sales and high-income earners in November.

The Texas Supreme Court ordered the state to pay more than $2 million to a former inmate who spent 26 years in prison for murder, a ruling that could set a precedent for compensating other prisoners whose convictions are overturned.

Billy Allen, now in his 60s, was convicted of two 1983 Dallas-area murders.

NATIONAL

2:13 a.m. An assault was reported on the 1000 block of Nipomo Street.

11:20 a.m. A missing person report was made on the 1200 block of Murray Street.

Monday, May 14 10:14 a.m. A theft was reported in the Vista Grande area.

8:13 p.m. A petty theft occurred between 1:30 p.m. and 6 at the Robert E. Kennedy Library.

1:28 p.m. An assault was reported on the 1100 block of Leff Street.

3:48 p.m. A case of child abuse or neglect was reported to the San Luis Obispo Police Department.

Tuesday, May 15 12:50 p.m. A hit-and-run collision with property damage occurred between midnight and 12:52 a.m. at the ornamental horticulture unit.

1:02 p.m. A case of counterfeiting/forgery was reported on the 800 block of Industrial Way. 1:09 p.m., 1:12 p.m. A theft was reported at the R-1 parking lot.

Wednesday, May 16 9:56 a.m. A hit-and-run collision was reported on the 300 block of Santa Rosa and Olive Streets.

2:43 p.m. Someone used a counterfeit bill as payment at the University Police Department.

10:18 p.m. A narcotics code violation occurred at Tenaya Hall.

Thursday, May 17 11:53 a.m. A case of domestic violence was reported on the 11000 block of Los Osos Valley Road.

1:51 a.m. Someone was publicly intoxicated at Poly Canyon Village.

Friday, May 18 12:07 a.m. An alcohol violation occurred at Sierra Madre Hall.

2:27 a.m. Someone was publicly intoxicated at Poly Canyon Village.

11:48 a.m. A case of identity theft occurring from 1996 to the present was reported to the University Police Department.

7:38 p.m. A fire alarm was falsely activated at Sierra Madre Hall.

INTERNATIONAL MICHAEL TERCHA/MCCLATCHY-TRIBUNE

Protestors marched during the NATO 2012 Summit in Chicago, Illinois, on Sunday.

STEVEN THOMMA AND JONATHAN LANDAY

McClatchy Newspapers

President Barack Obama and NATO allies on Sunday charted an outwardly confident path to a postwar Afghanistan, their talk tempered by a potential split in the coalition and warnings that bloodshed will continue, and perhaps escalate, when allied troops withdraw.

Obama, hosting the summit of NATO leaders in Chicago, worked to signal an electionyear balance between getting the U.S. out of an unpopular war as soon as possible while insisting that the U.S. and NATO will stay long enough to assure some sort of stability in Afghanistan.

U.S. officials said the alliance is expected Monday to approve a plan in which Afghan national security forces will take the lead in combat operations countrywide in summer 2013, earlier than the expected fall transition.

Gen. John Allen, commander of the NATO forces in Afghanistan, said recruitment of Afghan security forces is “several months ahead of schedule.” He said that would lead to a full Afghan national security force by year-end and a transition to Afghan forces taking the lead role in 2013.

U.S. and NATO combat troops will remain through 2014, in a supporting role but still exposed to possible combat, though the number of troops that will stay remains undecided.

For Obama, the timetable allowed him to boast that the alliance was unified behind a vision of a future after 2014 “in which we have ended our combat role, the Afghan war as we understand it is over, but our commitment to friendship and partnership with Afghanistan continues.”

“We still have a lot of work to do, and there will be great challenges ahead. The loss of life continues in Afghanistan; there will be hard days ahead,” he said after meeting with Afghan President Hamid Karzai on the sidelines of the summit. “But we’re confident that we are on the right track.”

Karzai, seeking to maintain at least some popular support in the U.S. as he seeks post2014 commitments of cash to pay for his country’s army, expressed the “gratitude of the Afghan people for the support that your taxpayers’ money has provided us over the past decade.”

Afghanistan, he said, “is fully aware of the task ahead and of what Afghanistan needs to do to reach the ob-

jectives that we all have of a stable, peaceful and self-reliant Afghanistan.”

Despite the talk of unity and confidence, the alliance is working to avoid a fasterthan-expected withdrawal.

France says it will get its combat troops out by the end of this year.

“Ultimately, we will need to understand exactly what the French decision will mean,” Allen said.

He said there would be “no degradation of security” and that the French troops could withdraw from combat missions but still help train Afghan forces.

Seeking to exploit a potential split, the Taliban on Sunday noted that Americans have turned against the war and urged NATO countries to abandon Afghanistan ahead of schedule as France vows to do.

“The people of nations allied with America have also shown their opposition to the occupation of Afghanistan,” the Taliban said in a prepared statement. “So the NATO member countries who claim to be the elected representatives of its people and consider their government the people’s government, by the people, for the people: how will they answer the call of their people in this summit?”

At the same time, Obama’s exit strategy hinges on questionable hopes, such as the abilities of the Afghan security forces.

The army suffers from corruption and nepotism. Officers recently interviewed in Afghanistan spoke of potentially crippling tensions between ethnic minorities and Pashtuns, the largest ethnic group. Many soldiers serve only because they can’t find civilian jobs, not out of loyalty to the government.

As the U.S. and NATO forces pull out, analysts also worry about losing the hardfought gains of more than decade of war.

Advocates warned that women, for example, face grave risks after the NATO withdrawal if the Taliban returns to power.

“Afghan women have never faced greater danger to the protection and advancement of their human rights; they need and deserve your support,” said an open letter to the NATO leaders signed by 46 women, including former U.S. Secretary of State Madeleine Albright and former Supreme Court Justice Sandra Day O’Connor.

“Their human rights, their safety, their very lives, must not be sacrificed as U.S. Armed Forces withdraw from the country.”

PAKISTAN — Pakistan’s decision to block access to the online social network Twitter on Sunday drew sharp criticism from human rights activists, who called it an “ill-advised” attempt at censorship.

The Pakistan Telecommunications Authority announced the ban, saying it was imposed after Twitter refused to remove postings from its website that the Pakistani government considered offensive to Islam. That material referred to a contest on Facebook to post caricatures of the prophet Muhammad.

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MDarts 4

Monday, May 21, 2012 COURTESY PHOTO

We meet in SLO

Chart-topping Tyrone Wells and Poly alumnus Michael Annuzzi to perform locally WE PUBLISH FOUR DAYS A WEEK. BUT WE’RE ONLINE 24/7.

MUSTANGDAILY.NET

SAMANTHA SULLIVAN

samanthasullivan.md@gmail.com

Singer/songwriter Tyrone Wells will bring pop-rock flavor and acoustic sound

to SLO Brewing Co. (SLO Brew) Tuesday.

Where We Meet, Wells newest album, hit the shelves in March. His fourth fulllength album cracked the top 10 list on iTunes and No. 1 on the singer/songwriter chart upon release, which was a first for Wells.

Wells said his past records were mostly acoustic, but some were more epic and lush in production. This album was a nice mixture of the two, he said.

“I think, on this record, I was able to meld my influences better,” he said. “There are sparse moments and epic moments.”

Where We Meet is Wells’ first record to be released since he split with his former label, Universal.

“It was a joint decision,” Wells said. “I didn’t like the terms under which they’d release my next record, so instead of keeping that relationship, we decided to part ways.”

Wells said it has been a positive decision for him.

Recently, Wells had a baby girl named Aria, which is Italian for “song,” who he said is inspiring some new music.

“She’s definitely rocking my world in the best way,” he said.

During the concert at SLO Brew, Wells said he’ll play a mixture of songs from his previous albums as wells as songs from Where We Meet. All of which will reflect Wells’ influences from a wide variety of music.

“It’s like U2, Stevie Wonder and James Taylor got all screwed up into one person,”

Wells said.

Daniel Schricker, bioresource and agricultural engineering sophomore, said Wells has talent. While he wasn’t too fond of the music video for “Freedom” — a song on Wells’ most recent album — he enjoyed the song, he said.

While fans enjoy his music, Wells’ fellow artists enjoy another side of him. Mike Annuzzi, a former Cal Poly student, works as Wells’ assistant tour manager and guitar tech on his national tour.

Working with Wells has been a great experience for Annuzzi, he said. Annuzzi — who will open for Wells at SLO Brew along with Tyler Hilton — called Wells an “outstanding person with the biggest heart,” as well as one of the most talented people he has ever known.

“His words touch people in ways I desire my music to be able to touch others,” Annuzzi said.

Like Wells, Annuzzi grew up around music. His father was a professional accordion player, and Annuzzi said he was in awe of his father.

“When I was 8, I told him, ‘Dad, when I grow up I either want to be just like you, a chef or a rock star,’” he said.

According to Annuzzi, Wells also has a great work ethic. A typical day consists of driving to a venue, sound checking, the performance and tearing it down, he said. Annuzzi said they sometimes drive to the next venue that night. However, Wells always takes time to

meet his fans, Annuzzi said.

Annuzzi said his own music falls under the pop/acoustic/ blues genre. The word he used to describe his sound: “happiness.”

“I want someone to listen and take the coolest story out of it,” he said. “I want them to take the words from my story and use them for their own story.”

He graduated from Cal Poly with a bachelor of arts in music with a concentration in guitar; however, Annuzzi started his education at Cal Poly as an economics major.

His reasoning: Mick Jagger was an economics major. He worked for Associated Students, Inc. for three years, and during this time, he said he brought groups such as One Republic and Death Cab for Cutie to campus when they were “nobodies.”

Annuzzi will return to Cal Poly May 31 to perform at Concerts in the Plaza, as well as later that night downtown at Creeky Tiki.

Annuzzi said the concert is going to be a great event filled with fun songs, love songs and songs that audiences can sing along with and dance to.

“It’s songwriters being true to themselves and showing others who they are,” he said.

Wells’ all-ages concert at SLO Brew begins Tuesday at 7 p.m. Tickets are $13 in advance and $15 at the door. In addition to opening for Wells, Annuzzi will perform during UU Hour on Thursday, and his show at Creeky Tiki will start at 7 p.m.

5.21.12 to

5.27.12

SLEEP. STUDY. EAT. SLEEP. STUDY. EAT. SLEEP. STUDY. REPEAT.

RE L A X , RE AD THE MU

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MD op/ed 6 MUSTANG DAILY Graphic Arts Building Building 26, Suite 226 California Polytechnic State University San Luis Obispo, CA 93407

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Monday, May 21, 2012 Volume LXXVI, Number 125 ©2012 Mustang Daily

“MD beats KCPR once again.”

Monday, May 21, 2012

Tables have turned, China owes US Richard Parker, a former Pentagon correspondent for Knight Ridder, is president of Parker Research in Austin, Texas. Researcher Emily Boyd contributed to this article.

China has a secret: It owes American investors hundreds of billions of dollars.

The Chinese government doesn’t like to talk about it and the U.S. government doesn’t want to raise it. But decades ago, Beijing defaulted on debt owed to Americans, as well as investors and governments around the world.

In one case, it was paid. In the rest it was not. More than 20,000 American investors own this debt. The U.S. government may also own Chinese war debt, unpaid since World War II. With the simple stroke of an executive proclamation, President Barack Obama can begin the process of addressing this issue. A 1930s-era law has established a quasi-public agency within the Securities and Exchange Commission, known as the Corporation of Foreign Securities Holders, which can arbitrate this dispute, much as a predecessor agency did for decades. China can both afford and benefit from this solution; it will afford goodwill at a time when relations between the world’s two superpowers are strained.

The story begins nearly 100 years ago, in 1913, when the government of China began issuing bonds to foreign investors and governments for infrastructure work to modernize the country. As the country fell into civil war in 1927, paying these debts became increasingly difficult and the government fell into default. Even so, in April 1938, the Nationalist government of China began to issue U.S.dollar denominated bonds to finance the war against Japan’s brutal invasion.

Locked in a pitched battle for survival, the government issued these bonds into 1940. As part of its wartime financial aid, the U.S. government further provided a $500 million credit to China in March 1942, shipping gold there and helping to stabilize the currency. In return, it appears that the U.S. government redeemed some of these dollar-denominated bonds.

But

China doesn’t appear to have repaid this debt either, according to State Department records, and the declaration of the People’s Republic of China in 1949 ended decades of political, military and financial cooperation.

While successor governments are usually bound by the debts of predecessor governments, the new Communist government refused to pay any of these claims.

The issue lay dormant for decades, just as the bilateral relationship did. Then, in 1979, as part of normalizing relations, Washington released government financial claims regarding the expropriation of American property and appears to have dropped the matter of the war debt entirely. However, it is one thing for government decision-makers to let go of government debt, however questionable that is.

And it is entirely another thing for individual citizens to press their claims. Some U.S. investors tried to sue the Chinese government in the 1980s and 1990s. However, the Foreign Sovereign Immunities Act makes it very hard for any U.S. citizen to sue a foreign government in U.S. courts because the law generally says that U.S. courts do not have jurisdiction.

The law usually only allows the jurisdiction of U.S. courts if a foreign government waives its immunity, commits a tort or seizes property. Recent additional exceptions have been added for terrorism. China lost an initial summary judgment for failing to appear in court but, with the urging of the U.S. State Department, later appeared in court and

successfully argued that U.S. courts did not have jurisdiction.

Today, the Chinese bonds held by U.S. investors may be worth as much as $750 billion, according to Jonna Bianco, president of the American Bondholders Foundation, who estimates the value of bonds held by investors worldwide may be $10 billion, including interest and penalties for default.

Over the years, congressional interest has been piqued. The late Rep. Henry Hyde convened hearings in 2003 and advocated that the bondholders press their case.

In March, Republican Rep. Ken Calvert and Sen. James Inhofe of Oklahoma, along with eight other members of Congress, asked the Government Accountability Office to look into the matter. In April, Rep. Gary Miller inquired with Treasury Secretary Timothy Geithner.

In general, governments do inherit the debt of their predecessors just as they inherit the assets of the nation. Governments have defaulted on debts since at least the 4th century B.C., when 10 of 13 Greek cities could not pay their bills; ironic, yes. And there is a long history of settlements, too. In the last 200 years, more than 70 governments, from Austria to Vietnam, have defaulted and eventually settled for far lesser amounts, allowing them to borrow once more, according to an MIT study, which adds: “The great majority of defaults in the 19th and 20th centuries eventually led to some form of settlement between creditors and the debtor country.”

Examples abound.

the previous regime. In 2006, Great Britain paid the final installment on a World War IIera loan from the United States and Canada, and even sent a thank-you note. Russia has paid debt incurred under the tzars.

One exception argued by governments is that in some cases a previous regime’s debt is “odious.” That is, the debt was incurred to enrich the regime or oppress the people.

Neither seems the case in China, which may be why it has never submitted to international adjudication. China, for its part, has not exactly disavowed the debt; it simply has selectively refused to pay it.

Beijing paid British investors a miserly $39 million upon the takeover of Hong Kong in 1987. France has tried to press the issue, even at the World Trade Organization. Further, in Taiwanese press accounts Chinese officials have indicated, in fact, that they might pay the United States — as part of a negotiation over the final status of Taiwan.

Technically, this calls into question China’s stellar credit ratings and those of its government-owned enterprises.

But specifically, the U.S. government has a legal obligation to its citizens. The 1933 Securities Act established both the Foreign Bondholders Protective Council, under State and Treasury, and the Corporation of Foreign Security Holders, under the SEC, to get foreign governments to address debts owed to private U.S. investors.

Housed in a Virginia suburb, the council in 47 instances settled the debts of foreign governments, including communist ones, to U.S. citizens. In 1975, the Polish government paid U.S. investors onet h i rd

An international arbitration panel found that post-revolutionary Iran needed to pay the United States for military aid in 1948. Post-apartheid South Africa has not repudiated debt incurred under

BARRIE MAGUIRE/NEWSART

the face value, or $8.5 million, of nine different series of bonds, all inherited from previous governments.

Indeed, President George W. Bush’s counsel directed the bondholders to the council in 2001 but the council did nothing, most likely to keep from rocking the bilateral U.S.China boat. Now, the council is shuttering its doors, as it has completed dozens of cases and no administration wanted to refer the Chinese case for fear of upsetting Beijing again.

However, the Corporation of Foreign Security Holders is still on the books and represents the only chance for U.S. investors to be paid.

All that has to happen is that President Obama issue a proclamation to stand up the corporation, and a staff, at the SEC. The bondholders would bring their bonds in for examination and verification of the certificates and serial numbers. Then the corporation could get about settling the issue through payment, reissue of bonds, restructuring or even settling the debt.

Many of these people are not wealthy investors but just everyday citizens. Bianco herself is a Tennessee cattle farmer.

The reality is that a settlement could benefit everyone. Yes, it will be politically distasteful in Beijing. But in all likelihood, a settlement would likely be struck for a fraction of the face value of the bonds. Unlike 1949, China today has the ability to pay. It would be seen as good faith by Americans. And that, in turn, would help reassure us about China’s increasingly important place in the world. There are simply too many other questions about China’s peculiar brand of state capitalism.

And besides, this is what economic superpowers do: They fulfill their obligations.

MDsports 7

Monday, May 21, 2012

Big West Standings - Baseball

Lacrosse settles for silver

Big West W-L

(As of May 20)

1. Cal State Fullerton

15-5

2. Long Beach State

14-7

3. Cal Poly

13-8

4. UC Irvine

12-9

5. UC Davis

10-11

6. Cal State Northridge 10-11 7. UC Santa Barbara

10-14

8. UC Riverside

8-12

9. Pacific

3-18

PHOTO COURTESY OF GLENN FUJINAKA

After bolting through the quarterfinals and semifinals of the Men’s Collegiate Lacrosse Association’s National Championships, Cal Poly lacrosse was defeated 7-5 by Colorado State in the final. The Mustangs defeated the University of Minnesota, Duluth; Michigan State; and Arizona State in Greenville, S.C., to advance to the national championship. Scott Heberer (above) led the Mustangs to the championship, scoring seven goals in the first three rounds, as the team won a pair of one-goal matches to move onto the championship.

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MDsports 8

Monday, May 21, 2012

Sweep keeps postseason hopes alive STEPHAN TEODOSESCU

stephanteodosescu.md@gmail.com

The Cal Poly dugout erupted onto the field and mobbed sophomore Jimmy Allen at third base as he tagged UC Santa Barbara’s Bryce Tafelski for the final out of Sunday’s come-from-behind win at Baggett Stadium.

A one-out pop up into foul territory in left field was corralled by sophomore David Armendariz, who then gunned down Tafelski, who was trying to advance to third, to end the game and give the Cal Poly baseball team (33-20, 13-8) a much-needed weekend series sweep of UC Santa Barbara (2427, 10-14) on Sunday.

Despite winning 11 of their last 14 contests, the Mustangs’ postseason fate now lies in the hands of an NCAA selection committee. A sweep of the rival Gauchos this weekend was necessary as Cal Poly tries to impress the committee and earn an at-large berth into a regional championship.

“This was a great series sweep this weekend,” head coach Larry Lee said. “It just keeps us alive for next weekend (against UC Riverside). It’s exactly what we needed.”

Cal Poly’s season looked as if it was nearing the end — another conference loss would likely have sealed their fate as the Mustangs trailed by as many as six runs heading into the bottom of the seventh inning.

But the team’s bats came to life in the seventh and eighth innings after a listless showing in the early part of the game.

Cal Poly scored four runs in both frames to take a 9-7 lead

heading into the ninth inning.

Sophomore closer Chase Johnson gave up a run in the final inning before the pop fly double play ended the game.

“It says how resilient we are as a ballclub,” Lee said. “Our guys have bought into not worrying about anything but the game at hand and the pitch at hand.”

Allen’s lone hit of the day was a big one as he rifled a basesloaded single in the eighth inning to score two and give the Mustangs an 8-7 lead. Cal Poly would add another tally in the inning to extend the lead to 9-7.

“I was looking for a good pitch up in the zone,” Allen said. “I got it and put a good swing on it.”

Allen is 5 for 7 with 12 RBI with the bases loaded this season, which is tops on the team.

He also earned an RBI sacrifice fly in the seventh inning to help jumpstart the Mustang rally — Cal Poly had four sacrificial flys in the game. The converted outfielder has made a tremendous impact with runners in scoring position this year, according to Lee. “He’s been clutch — that was his only hit of the day,” Lee said.

“That combination of (Mitch) Haniger and Allen in the 3-4 spot when they’re on adds a punch to our lineup.”

Senior shortstop Mike Miller has also made a considerable contribution this season as he leads the team with a .364 batting average. Playing in his final home game as a Mustang, Miller scored two runs on two hits to end his career at Baggett Stadium. He scored the go-ahead run in the eighth inning and extended his hit streak to seven games.

“I was just glad my last at-bat was able to do something to help the team,” Miller said. “It was a good team at-bat. Once I crossed the plate, it was a real good feeling scoring the goahead run.”

The Mustang pitching staff struggled throughout the game as it allowed 17 hits and only posted two scoreless innings

on the afternoon. Junior starter Kyle Brueggemann got into trouble early and was pulled after 2 1/3 innings after allowing two runs on seven hits.

Cal Poly used only one relief pitcher in the previous two games of the series — sophomore Michael Holback — but needed four on Sunday to complete the sweep.

Armendariz went 3 for 4 with two RBI and drove in the winning run of the day.

The Mustangs conclude their regular season next weekend at UC Riverside needing a sweep of the Highlanders, but Lee said the team will also need some help from the selection committee to augment a strong

showing to end 2012.

“If you compare our résumé with anyone that is vying for an at-large bid, we’re as good as anyone,” Lee said. “In my mind, we’ve put ourselves as the second team in the Big West (behind Cal State Fullerton), and hopefully, we’ll end up in that upper echelon of the Big West when the season ends.”

NHA HA/MUSTANG DAILY

Freshman right fielder Nick Torres (left) had a hit in Cal Poly’s victory over UC Santa Barbara on Sunday. He has five home runs this season — the second most on the team — and is batting .257 in his first season playing for the Mustangs.